Trendlines Group Ltd. · SGX:42T
Trendlines — The Trendlines Group — Investor Presentation (November 2017)
28 slides from Trendlines's investor presentation, November 2017
Slide 1: The Trendlines Group investor presentation
The Trendlines Group investor presentation Steve Rhodes Todd Dollinger Gabi Heller Chairman and CEO Chairman and CEO Chief Financial Officer November 2017 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: Value creation through portfolio expansion
Value creation through portfolio expansion US$ Portfolio value with exit proceeds millions 120 100 Portfolio Value Cumulative Exit Proceeds 80 60 40 20 0 30.12.08 30.12.09 30.12.10 30.12.11 31.12.12 31.12.13 31.12.14 31.12.15 31.12.16 30.9.17 Portfolio value includes the fair value of investments in
Slide 4: Trendlines: building companies, commercializing innovation
Trendlines: building companies, commercializing innovation Life science incubators 4
Slide 5: Trendlines: building companies, commercializing innovation
Trendlines: building companies, commercializing innovation In-house innovation center of The Trendlines Group Invents and develops technologies to address unmet market needs 5
Slide 6: Carrying value on eve of exit vs. exit value
Carrying value on eve of exit vs. exit value (US$) millions Total exits through 30 September 2017 70 60 50 40 Cash Invested 30 Total Investment = Cash + In-kind Pre-exit carrying value 20 Exit value (1) 10 0 (1) Includes PV of estimated royalties for Most Valuable Portfolio Company 6
Slide 7: Exits: estimated returns and IRR
Exits: estimated returns and IRR Estimated Exit Company/Description Acquirer IRR (%) Return(1) 2017 BioSight Arkin Bio Ventures LP 216.7 X 71 2016 E.T.View Medical Ambu A/S 1.2 X 5 Most Valuable Portfolio 2014 Undisclosed(3) 79.1 X(2) 80 Company (MVPC)(3) 2014 Inspiro Medical OPKO Health 8.8 X 131 2
Slide 8: The Trendlines' model
The Trendlines’ model
Slide 9: The Trendlines' model: capital leverage
The Trendlines’ model: capital leverage Trendlines’ In-kind typical Trendlines Government capital grant investment investment at cost ~US$1,420,000 ~US$120,000 ~US$650,000 ~US$650,000 per company over two-year period Similar leverage in Singapore 9
Slide 10: Trendlines' model: proven, focused company-building timeline
Trendlines’ model: proven, focused company-building timeline Ideation Due Year 1 Year 2 Year 3+ 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 trials Fo
Slide 11: Trendlines' model: creating a foundation with intensive support
Trendlines’ model: creating a foundation with intensive support Financial consulting Business development Potential customers, partners, investors Raising capital Market research Overheads Bookkeeping, accounting, Marketing communications legal, operations Technology consulting Facilities & infrastr
Slide 12: Trendlines' model: strategic partnerships
Trendlines’ model: U.S. Medical Device strategic Multinational partnerships Japanese Medical Device Multinational 12
Slide 13: Trendlines Labs
Trendlines Labs Selected achievements 2017 Selected Trendlines Labs portfolio • Started 2 companies in the incubators: Field Invention Dev. Status Limaca and InterVaal Urology Reduced infection-risk Formed new Foley catheter company • Several projects proposals in Disposable surgical evaluation phas
Slide 14: Decades of company-building experience
Decades of company-building experience Nitza Kardish, Ph.D Yosi Hazan Todd Dollinger VP The Trendlines Group, CEO Trendlines Labs Eric Loh Chairman & CEO CEO Trendlines Incubators Israel Former GM, Biosense Webster CEO Trendlines Medical Former CEO, Clal Life Sciences (J&J company) Singapore Former
Slide 15: Expanding portfolio value
Expanding portfolio value
Slide 16: Achieving milestones to create value
Achieving milestones to create value As at 30 September 2017; 30 written-off portfolio companies and 1 company established before September 2007 not listed. One of our 10 most valuable portfolio companies as at 30 September 2017. 16
Slide 17: 10 most valuable portfolio companies
10 most valuable portfolio companies Fair market value of 10 most valuable portfolio companies ~US$66.6 million, 70.3% of total portfolio value of ~US$94.7 million.* Company name Initial investment % owned (fully diluted) ApiFix Ltd. 2011 24.02 Arcuro Medical Ltd. 2013 37.36 BioFishency Ltd. 2013 48
Slide 18: Minimally invasive scoliosis correction system
Minimally invasive scoliosis correction system Minimally invasive scoliosis correction system incorporates a miniature mechanism for gentle, incremental correction Investment & Intense Support • Assisted in raising US$7.8 million in three rounds • Last round led by B. Braun • Majority of investors b
Slide 19: A breakthrough in heart pump technology
A breakthrough in heart pump technology Wireless system to provide the day-to-day power needs of heart pump (LVAD) implants while eliminating the complications related to the drive line cable. Investment & Intense Support • Active guidance in marketing, business development, investment banking • Ass
Slide 20: Water treatment system for aquaculture
Water treatment system for aquaculture Cost-effective, all-in-one water treatment system for reduced water use and improved yields in land-based aquaculture. Operates with all existing aquaculture systems: extensive, intensive, and recirculating Investment & Intense Support • Active guidance in mark
Slide 21: Natural, nontoxic bio-insecticide
Natural, nontoxic bio-insecticide Natural, nontoxic insect control system for greenhouse crops, ornamentals, and cannabis that masks plant odors and reduces insect attraction; based on extracts of plants endemic to Israel’s semi-desert region Investment & Intense Support • Active guidance in marketi
Slide 22: Financial highlights
Financial highlights
Slide 23: Key components of value (US$ million)
Key components of value (US$ million) Change in portfolio value during the year Balance sheet 12.4 (4.1) 14.2 (5.8) (4.8) (14.3) 1.9 (0.5) 83.7 94.0 82.7 Net portfolio Investment in FV increase FV decrease & Net portfolio Cash, short-term Non-recourse Deferred Deferred tax (2) Other Total equity val
Slide 24: Stock overview
Stock overview Trendlines SGX share price movement - 12 months (S$) As at SGX: 42T OTCQX: TRNLY 13 November S$ US$* 2017 Last price S$ 0.160 US$ 5.96 IPO price S$ 0.33 -- 52-wk high S$ 0.21 US$ 6.15 52-wk low S$ 0.13 US$ 4.45 Market cap S$97.4 million US$71.5 million Shares 608.8 million -- outstand
Slide 25: Traded peer group & industry comparables
Traded peer group & industry comparables Price to portfolio (FMV*) Allied Minds (LSE:ALM) 1.38 Touchstone Innovations (AIM:IVO) 1.40 IP Group (LSE:IPO) 1.66 Malin Corporation (ISE:MLC) 1.07 Mercia Technologies (AIM:MERC) 1.91 PureTech Health (LSE:PRTC) 1.30 Average Price to Portfolio 1.45 Trendlines
Slide 26: The Trendlines Group value-building strategy
The Trendlines Group value-building strategy 1 Increase number of portfolio companies More than 30 companies to be added to portfolio over 3 years 2 Build value of portfolio companies • Intense support • Participate in follow-on rounds 3 Increase assets under management • Venture fund in partnership
Slide 27: The Trendlines Group value-building strategy
The Trendlines Group value-building strategy 1 Increase number of portfolio companies More than 30 companies to be added to portfolio over 3 years 2 Build value of portfolio companies • Intense support • Participate in follow-on rounds 3 Expand into new markets • Trendlines Medical Singapore establi
Slide 28: SGX: 42T OTCQX: TRNLY www.trendlines.com
Steve Rhodes, Chairman & CEO SGX: 42T steve@trendlines.com OTCQX: TRNLY Todd Dollinger, Chairman & CEO todd@trendlines.com +972.72.260.7000 www.trendlines.com Gabi Heller, Chief Financial Officer gabi@trendlines.com Judith Kleinman, Director Investor Relations 13 November 2017 judith@trendlines.com
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