Trendlines Group Ltd. · SGX:42T
Trendlines — The Trendlines Group — Investor Presentation (February 2019)
31 slides from Trendlines's investor presentation, Feb 20, 2019
Slide 1: The Trendlines Group Investor presentation
The Trendlines Group Investor presentation Steve Rhodes Todd Dollinger Haim Brosh Chairman and CEO Chairman and CEO Chief Financial Officer 20 February 2019 SGX:42T OTCQX: TRNLY
Slide 2: Legal disclaimer
Legal disclaimer Important notice This presentation is for informational purposes only and does not constitute or form any part of any offer for sale or subscription of, or solicitation of, any offer to buy or subscribe for any securities of The Trendlines Group Ltd. (“Company”) or any of its portfo
Slide 3: Trendlines: building companies, building value
Trendlines: building companies, building value Life science incubators 3
Slide 4: Trendlines: building companies, building value
Trendlines: building companies, building value In-house innovation center of The Trendlines Group Inventing and developing technologies to address unmet market needs 4
Slide 5: 11 years of portfolio value expansion
11 years of portfolio value expansion Note: For 2018, the portfolio value does not reflect all current portfolio companies due US$ millions to consolidation of 5 newly-formed Portfolio value with exit proceeds companies as subsidiaries controlled by The Trendlines Group. 140 120 Portfolio value* (ex
Slide 6: Portfolio value growth (net of Stimatix)
Portfolio value growth (net of Stimatix) US$ millions Portfolio value growth 70 Stimatix GI Rest of portfolio Exit proceeds 60 48.9% value growth in 3 years 50 40 30 20 10 0 30.06.15 31.12.18 *Portfolio value includes the fair value of investments in portfolio companies accounted for under the equit
Slide 7: Carrying value on eve of exit vs. exit value
Carrying value on eve of exit vs. exit value US$ millions Total exits through 31 December 2018 60 50 40 30 Cash invested Total investment (cash + in-kind) 20 Pre-exit carrying value Exit value* 10 0 *Includes present value of Stimatix GI estimated royalties. 7
Slide 8: Exits: estimated returns and IRR
Exits: estimated returns and IRR Estimated Exit Company/Description Acquirer IRR (%) Return* 2017 MitrAssist Wai Tech (Hong Kong) Holding Ltd. 2.1 X 12 2017 BioSight Arkin Bio Ventures LP 216.7 X 71 2016 E.T.View Medical Ambu A/S 1.2 X 5 2014 Stimatix GI B. Braun SAS 67.6 X** 77 2014 Inspiro Medical
Slide 9: The Trendlines model
The Trendlines model
Slide 10: The Trendlines model: capital leverage
The Trendlines model: capital leverage* Trendlines’ typical investment ~US$1,420,000 per company In-kind Trendlines Government investment at capital grant cost ~US$120,000 ~US$650,000 ~US$650,000 over two years *Model shown is typical capital leverage model for companies in Israel; similar leverage
Slide 11: Trendlines' model: proven, focused company-building timeline
Trendlines’ model: proven, focused company-building timeline Need/ Due Year 1 Year 2 Year 3+ Ideation Diligence Proof of concept R&D to prototype Path to exit Physicians Market assessment Regulatory plan Follow-on funding Governance Engineers Business case IP strengthening Preclinical / clinical tri
Slide 12: Trendlines model: intensive support
Trendlines model: intensive support Business development Financial structuring Customer, partner, investor relationships Raising capital Market research Entrepreneurial ecosystem Marketing communications G&A support Bookkeeping, accounting, legal, operations Facilities & infrastructure Companies loc
Slide 13: Trendlines model: strategic partnerships
Trendlines model: Government of Singapore strategic partnerships Sirius VC Government of Israel 13
Slide 14: Trendlines Labs
Trendlines Labs • Established 4 Trendlines portfolio companies: InterVaal, PregnanTech, Hyblate Medical, Limaca • 3 companies in formation: SUI, bladder mapping, sZone • Partnerships in Singapore, Japan, Europe, U.S., China Selected Trendlines Labs inventions Field Invention Status Urology Reduced i
Slide 15: Management changes
Management changes Todd Dollinger Barak Singer Chairman & CEO CEO Trendlines Incubators Nir Goldenberg Israel CEO Trendlines Labs Nitza Kardish, Ph.D. VP The Trendlines Group Steve Rhodes Chairman & CEO Haim Brosh Eric Loh CFO & CEO Trendlines Medical Joint Co. Sec’y. Singapore 15
Slide 16: Expanding portfolio value
Expanding portfolio value
Slide 17: Companies achieving milestones to create value
Companies* achieving milestones to create value *53 portfolio companies as at 31 December 2018; 33 written-off portfolio companies not included. One of our 10 most valuable portfolio companies as at 31 December 2018. 17
Slide 18: 10 most valuable portfolio companies
10 most valuable portfolio companies Fair market value of 10 most valuable portfolio companies ~US$63.3 million, 65.1% of total portfolio value of ~US$97.2 million.* Initial Company name % owned (fully diluted) investment ApiFix Ltd. 2011 20.48 Arcuro Medical Ltd. 2013 37.24 BioFishency Ltd. 2013 37
Slide 19: Minimally invasive scoliosis correction system
Minimally invasive scoliosis correction system Minimally invasive scoliosis correction system incorporates a miniature ratchet mechanism for gentle, incremental correction over time Achievements • Targeted sales in Canada, Europe, Israel and Asia • Completed >275 successful surgical procedures • Fir
Slide 20: A game changer in heart pump technology
A game changer in heart pump technology 20
Slide 21: A game changer in heart pump technology
A game changer in heart pump technology Fully Implanted Ventricular Assist Device (FIVAD), powered wirelessly using both internal and external components, allows patients to walk around without any physical impediments for up to 8 hours a day Achievements • First in Human of FIVAD with successful 40
Slide 22: Low-profile solutions for colostomy management
Low-profile solutions for colostomy management Development of low-profile innovative solutions for colostomy management, created to improve the quality of life for people with stomas Achievements • B. Braun has established high-volume manufacturing facility • Commercial launch of product in 2018 • C
Slide 23: Water treatment system for aquaculture
Water treatment system for aquaculture Cost-effective, all-in-one water treatment system for reduced water use and improved yields in all types of land-based aquaculture systems (extensive, intensive, and recirculated) Achievements • Units operating in 7 countries (Asia, Africa & Middle East) • Clos
Slide 24: Miniature stem water potential (SWP) sensor
Miniature stem water potential (SWP) sensor Advanced decision support system for optimal irrigation through a miniature SWP sensor embedded in the trunks of trees, vines, and plants Achievements • Completed successful field trials in California (vineyards, almond, walnut trees) • New field trials in
Slide 25: Financial highlights
Financial highlights
Slide 26: Key value components
Key value components Change in portfolio value during FY2018 Balance sheet as at 31 December 2018 (US$ millions) 14 (13.6) 11.8 (3) (5) (13.7) (0.9) 96.8 97.2 86.4 Net portfolio Investments Fair value Net portfolio Cash, short- Fair value of Deferred Deferred tax** Payables & Total equity value 31.1
Slide 27: Stock overview
Stock overview Trendlines’ SGX share price movement: March 2018 - Feb 2019 (S$) As at SGX: 42T OTCQX: TRNLY 18 Feb 2019 S$ US$ Last price S$ 0.101 US$ 3.51 IPO price S$ 0.33 – 52-wk high S$ 0.148 US$ 5.37 52-wk low S$ 0.89 US$ 3.25 Market cap S$ 61.5 million US$ 42.7 million Shares Each OTCQX ADR =
Slide 28: Traded peer group & industry comparables
Traded peer group & industry comparables Price to portfolio (FMV1) Allied Minds (LSE:ALM) 0.48 IP Group (LSE:IPO) 0.99 Malin Corporation (ISE:MLC) 0. 63 Mercia Technologies (AIM:MERC) 1.49 Average price to portfolio 0.90 Trendlines price to portfolio 0.44 1. Based on market capitalization as at 18 F
Slide 29: Factors driving value expansion
Factors driving value expansion 1 Increasing number of portfolio companies 2 Building portfolio companies’ value through intense support 3 Building companies for exit 4 Trendlines Labs: creating new IP and new portfolio companies 5 Planning Agrifood Innovation Center in Singapore (AFIC) 29
Slide 30: SGX: 42T OTCQX: TRNLY www.trendlines.com
SGX: 42T Steve Rhodes, Chairman & CEO OTCQX: TRNLY steve@trendlines.com Todd Dollinger, Chairman & CEO +972.72.260.7000 todd@trendlines.com www.trendlines.com Haim Brosh, Chief Financial Officer haim@trendlines.com 20 February 2019
Slide 31: Financial statements and related announcement: full yearly results
FINANCIAL STATEMENTS AND RELATED ANNOUNCEMENT::FULL YEARLY RESULTS Issuer & Securities Issuer/ Manager THE TRENDLINES GROUP LTD. Securities THE TRENDLINES GROUP LTD. - 1L0011328858 - 42T Stapled Security No Announcement Details Announcement Title Financial Statements and Related Announcement Date &T
The Trendlines Group — Investor Presentation (February 2019) on 6ix