Trendlines Group Ltd. · SGX:42T
Trendlines — The Trendlines Group — Investor Presentation (May 2017)
30 slides from Trendlines's investor presentation, May 11, 2017
Slide 1: Creating & Developing Companies To Improve the Human Condition
Creating & Developing Companies To Improve the Human Condition Steve Rhodes SGX: 42T Chairman and CEO OTCQX: TRNLY 11 May 2017 1
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, Commercializing Innovation
Trendlines: Building Companies, Commercializing Innovation Life Science Incubators Invest in companies to improve the human condition In-House Innovation Center Invents and develops technologies to address unmet market needs 3
Slide 4: A Breakthrough in Heart Pump Technology
Trendlines’ Portfolio Company: A Breakthrough in Heart Pump Technology • People with end-stage heart failure usually die within six months. • Mechanical heart pumps keep them alive longer. © Can Stock Photo Inc./JFsPic The problem with mechanical heart pumps is the driveline that exits the body. 4
Slide 5: Leviticus Cardio: Making It Wireless
Leviticus Cardio: Making It Wireless • No cable • Recharge implanted battery – wirelessly • Freedom from external apparatus for 6-10 hours Achievements • Fully operational system • ISO 13485 • Key opinion leaders on board • 8 patents granted • Successful animal trials • High visibility among LVAD pl
Slide 6: Leviticus Cardio: LVADs Are an Under-Penetrated Market
Leviticus Cardio: LVADs Are an Under-Penetrated Market • Current LVAD market ~US$1 billion • Only ~10% market penetration attributed primarily to driveline issues 69,000 138,000 7,000 existing potential implants Leviticus Cardio’s wireless solution is the candidates candidates groundbreaking breakth
Slide 7: Trendlines Partners with Strategic Industry Leaders
Trendlines Partners with Strategic Industry Leaders ~US$20 million committed in the past year B. Braun Melsungen AG by market leaders • Founded 1839 • Privately held • Global sales: €6.1 billion B. Braun • 56,000 employees • Invested ~US$5 million in Trendlines’ IPO • Supplies global health care mar
Slide 8: Unique Foundation/Unique Model
Unique Foundation/Unique Model Trendlines Model • Disciplined investment strategy • Intensive, hands-on, involvement in companies Israeli Start-Up Ecosystem • Early-stage, entrepreneur-focused investment environment • Israel spending on civilian R&D highest in the world • Cultivation of entrepreneur
Slide 9: Value Creation through Portfolio Expansion
Value Creation through Portfolio Expansion 110 (US$ millions ) Portfolio Value with Exit Proceeds 100 90 80 70 60 50 40 31.12.12 31.12.13 31.12.14 31.12.15 31.12.16 31.3.17 Portfolio Value Cumulative Exit Proceeds Including the fair value of investments in companies accounted for under the equity me
Slide 10: Primary Factors Driving Expansion of Portfolio Value
Primary Factors Driving Expansion of Portfolio Value 1. Increasing the number of companies in the portfolio 2. Building portfolio companies’ value 3. Building companies for exit 4. Trendlines Labs: creates new IP and new portfolio companies, generates recurring revenues 10
Slide 11: The Trendlines' Model: Capital Leverage
The Trendlines’ Model: Capital Leverage • Trendlines’ typical investment: ~US$1,240,000 per company • Trendlines capital: ~US$120,000 • Government grant: ~US$670,000 • In-kind investment at cost: ~US$450,000 over two-year period • Similar leverage in Singapore 11
Slide 12: Trendlines Model: Creating a Foundation with Intensive Support
Trendlines Model: Creating a Foundation with Intensive Support Business Development Financial Potential customers, Consulting partners, investors Raising Capital Market Research Overheads Marketing Communications Bookkeeping, accounting, legal, operations Facilities & Infrastructure Technology Consu
Slide 13: The Trendlines Model: Milestones
The Trendlines Model: Milestones Blueprint for Building Companies Incubator Year 1 Incubator Year 2 Proof of concept Follow-on funding R&D to prototype Regulatory plan Preclinical / clinical trials IP strengthening Regulatory submission Market research Accounting & legal Marketin
Slide 14: Building Value Over Time
Building Value Over Time As at 31 March 2017; 28 written-off portfolio companies and 2 companies established before September 2007 not listed. One of our 10 most valuable portfolio companies as at 31 March 2017. 14
Slide 15: Trendlines: Portfolio Value
Trendlines: Portfolio Value Fair market value of 10 most valuable portfolio companies ~US$57.2 million, 68.3% of total portfolio value of ~US$83.8 million.* Company Initial % Owned Name Investment (Fully Diluted) ApiFix Ltd. 2011 25.25 Arcuro Medical Ltd. 2013 37.36 CoreBone Ltd. 2011 39.65 EdenShie
Slide 16: Trendlines Labs
Trendlines Labs Selected Achievements 2016 • Income from Trendlines Labs rises to Selected Trendlines Labs Portfolio US$1.1 million, compared to US$0.4 million Field Invention Dev. Status Reduced infection-risk Foley in FY2015 Urology catheter Prototype • 2 development programs started with new Neur
Slide 17: Successful Execution of Trendlines' Blueprint
Successful Execution of Trendlines’ Blueprint 4 Key Factors 1. Management team 2. Partnerships with multinational corporations 3. Successfully achieving goals 4. Profitable exits 17
Slide 18: Decades of Company-Building Experience
Decades of Company-Building Experience Nitza Kardish, Ph.D. Yosi Hazan Eric Loh VP The Trendlines Group CEO Trendlines Labs CEO Trendlines Medical Todd Dollinger CEO Trendlines Incubators Israel Singapore Chairman & CEO Former CEO, Clal Life Sciences Former GM, Biosense Former Managing Director, Web
Slide 19: Strategic Partnerships
Strategic Partnerships B. Braun Bayer AG Japanese Medical Device Multinational • Agreement with Trendlines Labs to collaborate on clinical opportunities • Trendlines Labs developing innovative products for manufacture and marketing by MNC U.S. Medical Device Multinational • Successfully marketing pr
Slide 20: Keeping Our Promises to Investors
Keeping Our Promises to Investors Since our listing in November 2015 Our Goals What We Did 1. Renew licenses from Israeli gov’t. Renewed one license and merged second into it 2. Start new companies Started 10 new companies 3. Establish new incubator Established Trendlines Medical Singapore 4. Grow T
Slide 21: Portfolio Company Exits
Portfolio Company Exits M&A Transactions Year Company Acquirer 2016 ETView Medical Ambu 2014 Most Valuable Portfolio Company Undisclosed 2014 Inspiro OPKO 2013 FlowSense Baxter International 2013 Innolap Surgical Teleflex 2011 PolyTouch Covidien/Medtronic Public Listings Year Company Exchange 2010 E
Slide 22: Key Components of Value (US$ million)
Key Components of Value (US$ million) Change in portfolio value during the year Balance sheet 13.7 1.0 (4.0) (5.0) 0.8 2.1 (2.8) (12.7) 83.7 83.8 76.7 Net Portfolio Investment in FV Increase FV Decrease & Net Portfolio Cash and Short- Investment Non-recourse Deferred Deferred Tax (2) Total Equity Va
Slide 23: Traded Peer Group & Industry Comparables
Traded Peer Group & Industry Comparables Price to Portfolio (FMV)* Allied Minds (LSE:ALM) 1.09 Touchstone Innovations (AIM:IVO) 1.43 IP Group (LSE:IPO) 1.53 PureTech Health (LSE:PRTC) 1.21 Average Price to Portfolio 1.32 Trendlines Price to Portfolio 0.66 *Based on market cap on 8 May 2017, divided
Slide 24: Stock Overview
Stock Overview Trendlines SGX share price movement - 12 months (S$) As at SGX: 42T OTCQX: TRNLY 8 May 2017 S$ US$* Last Price S$ 0.15 US$ 5.47 IPO Price S$ 0.33 -- 52-Wk High S$ 0.25 US$ 6.40 52-Wk Low S$ 0.15 US$ 4.71 Market Cap S$77.3 million US$55.0 million Shares 508.8 million -- Outstanding Fre
Slide 25: Minimally Invasive Scoliosis Correction System
Minimally lnvasive Scoliosis Correction System ApiFix Ideation Identified serial entrepreneur-spine expert Revenue Investment & Intense Support Stage • Raised US$7 million in three rounds • Last round led by B. Braun • Majority of investors brought by Trendlines, including many Trendlines shareholde
Slide 26: Water Treatment System for Aquaculture
Water Treatment System for Aquaculture BioFishency Solution Cost-effective, all-in-one water treatment system for Revenue reduced water use and improved yields in land-based Stage aquaculture. Operates with all existing aquaculture systems: extensive, intensive, and recirculated Ideation Achievement
Slide 27: Natural, Nontoxic Bio-Insecticide
Natural, Nontoxic Bio-Insecticide EdenShield Solution Natural, nontoxic insect control system for greenhouse Revenue crops, ornamentals, and cannabis that when applied to Stage screens reduces insect attraction; based on extracts of plants endemic to Israel’s semi-desert region Ideation Achievements
Slide 28: The Trendlines Group: Value Building Strategy
The Trendlines Group: Value Building Strategy Increase Number of Portfolio Companies • More than 30 companies to be added to portfolio over 3 years Build Value of Portfolio Companies • Intense support • Participate in follow-on rounds Expand into New Markets • Trendlines Medical Singapore establishe
Slide 29: Creating & Developing Companies To Improve the Human Condition
Creating & Developing Companies To Improve the Human Condition Todd Dollinger, Chairman & CEO todd@trendlines.com Steve Rhodes, Chairman & CEO steve@trendlines.com +972.72.260.7000 | www.trendlines.com Judith Kleinman, Director Investor Relations judith@trendlines.com 11 May 2017 29
Slide 30: Issuer/Manager THE TRENDLINES GROUP LTD.
Issuer/Manager THE TRENDLINES GROUP LTD. Securities THE TRENDLINES GROUP LTD. – IL0011328858 – 42T Stapled Security No Announcement Title General Announcement Date & Time of Broadcast 15 May 2017 07:02:11 Status New Announcement Sub Title Trendlines Investor Presentation May 2017 Announcement Refere
The Trendlines Group — Investor Presentation (May 2017) on 6ix