Slide 1: Interims Update 30 June 2021
Combining good science, proactive management and smart investment to deliver returns for shareholders 30 June 2021 Interims Update September 2021
Slide 2: Disclaimer (1 of 2)
Disclaimer (1 of 2) This document (the "Presentation") is being provided to a limited number of parties who have previously expressed an interest in acquiring an equity interest (the "Investor Interest") in NetScientific plc (the "Company") in connection with the proposed placing of ordinary shares
Slide 3: Disclaimer (2 of 2)
Disclaimer (2 of 2) The contents of this document have not been approved for the purposes of section 21 of the Financial Services and Markets Act 2000 ("FSMA"). The Presentation is only being made available to persons who are authorised persons or exempt persons within the meaning of FSMA or to pers
Slide 4: Agenda
Agenda Presentation • Introduction to NetScientific (NSCI) • Strategy & Portfolio • Business & Progress • Half- year KPIs • Highlights and Actions • Way Forward • Summary & Q&A 4
Slide 5: NetScientific
NetScientific NetScientific Plc is an active holding company. It invests in, develops, commercialises and aims to realise returns from life sciences/healthcare, sustainability and technology companies The Group leverages trans-Atlantic relationships and global opportunities to deliver shareholder va
Slide 6: New Team in 2020 Effective Corporate Governance
New Team in 2020 Effective Corporate Governance John Clarkson, Executive Chairman Prof. Stephen Smith, Non-Executive Director, • ex-PWC Legacy Partner in Charge, Developing Services Chair of Remuneration and Nomination Committees and Consultancy (incl. strategy & performance improvement) Advisory Gr
Slide 7: New Strategy Implementation
New Strategy Implementation Focus on execution, controls & scalable processes: • Pro-active, commercial management • Extended, balanced portfolio, with support tailored for each company, • Carefully structured “capital light” investment approach, with syndication to fund across the company’s life cy
Slide 8: Portfolio of companies in US, UK, Israel
Portfolio of 17 companies in US, UK, Israel A robust balanced portfolio with a consistent focus, logical growth paths and risk mitigation *Disclaimer: Portfolio comprises of equity investments and exposure to companies through carried interest, realisable on exit 8
Slide 9: Business
Business Thank you to Shareholders for support and funding = now accelerating growth strategy Portfolio • Subsidiaries: driving projects, commercialisation, operations and delivery • Direct investments: judicious selection and progressing opportunities • Capital Under Advisory: further growth and st
Slide 10: Progress
Progress Real momentum and delivery: Turnaround: largely complete Consolidation & structured growth: with stronger platform Selected priorities: for deeper ownership, targeted investment, greater involvement and best returns Enhanced portfolio: balanced risks, focussed on potential and realisation C
Slide 11: Highlights and KPIs of Half Year 2021
Highlights and KPIs of Half Year 2021 Share price has increased from the relative low point of 12.5p in early 2020 to an average of c. 66p End of period share price: 118.5p In line with expectations, losses at £1.4m slightly up on £1.3m in H1 2020 Reflects investments, active management, development
Slide 12: Highlights and KPIs of Half Year 2021
Highlights and KPIs of Half Year 2021 Increase in fair value (unaudited Directors estimated value) of direct investments by c. 50% from £21.2m to £31.9m at 30 June 2021 Focus on driving progress and value in existing assets, with further growth anticipated Capital Under Advisory increased by c. 25%
Slide 13: Portfolio Highlights: Direct Investments and Focus
Portfolio Highlights: Direct Investments and Focus ProAxsis, UK (Respiratory diagnostics, 100% owned): • Grant successes: now commercialising 5 novel/improved products due for launch Q1 2022 • Clients’ clinical trials postponed, but expanding markets, building infrastructure to increase capacity and
Slide 14: Selective Deeper Engagement
Selective Deeper Engagement SageTech Medical, UK (anaesthetic capture and recycle; 24% managed + direct) • EMVC led £2.9m round with NSCI £200k participation; new strategic framework • Launching cannister capture in hospitals, successful NHS pilots, commercialisation push PointGrab, Israel (AI-based
Slide 15: Footprint: Cambridge High-Tech Cluster
Footprint: Cambridge High-Tech Cluster High-quality proprietary deal flow – access to attractive Deeptech companies EMV Capital co-led with £1m a £12m investment into Cambridge-based Martlet Capital with an established Deeptech portfolio, with opportunity for further selective investments EMVC 40% s
Slide 16: Trans-Atlantic Bridges
Trans-Atlantic Bridges… Exploit NS relationships, portfolio synergies, add value on both sides of the Atlantic US: Managed East Coast shared cost-effective shared lab, facilities and services • Glycotest: lab and services for commercial roll-out • ProAxsis: US lab, manufacturing & sales capability t
Slide 17: Way Forward
Way Forward • Utilise and leverage underlying asset base, PLC Brand and harness group synergies • Performance driven plans • Focus on value inflection points, investment returns exit opportunities and liquidity events • Clear milestones, quarterly KPIs, rolling 12 months actions, 3-5 year planning h
Slide 18: Summary - Q&A
Summary - Q&A Transformed business: Right asset base, right space, right time and right platform • Alignment of underlying (and increasing) asset value with market cap • Progressive, selective, development of portfolio and new growth potential • Multiple opportunities to generate, grow and realise s
Slide 19: Appendices
Appendices 19
Slide 20: Portfolio Summary – Fair Value & Capital Under Advisory
Portfolio Summary – Fair Value & Capital Under Advisory Portfolio companies Sector and description (further Fully diluted Consolidated Fair Value of stake Capital Under Advisory detail set out below) Group Interest % Statement of Financial Position value 31-Dec-20 30-Jun-21 (At Cost to Third Party)