Powerhouse Ventures Ltd. · ASX:PVL
Powerhouse Ventures — Investor Presentation (November 2016)
79 slides from Powerhouse Ventures's investor presentation, Nov 28, 2016
Slide 1: Powerhouse Ventures Limited Capital Markets Briefing
For personal use only Powerhouse Ventures Limited (ASX code:PVL) Capital Markets Briefing Melbourne Sydney Monday 28 November 2016 Tuesday 29 November 2016 The Wine Room The Press Room The Westin Melbourne The Radisson Blu Plaza Sydney 205 Collins Street 27 O’Connell Street Melbourne, VIC 3000 NSW 2
Slide 2: Disclaimer
2 For personal use only Disclaimer The information in this presentation is not an offer, nor constitutes investment advice or any recommendation to subscribe or acquire securities in Powerhouse Ventures Limited, nor retain or sell any securities currently held. The presentation has been prepared wit
Slide 3: Opening remarks and agenda
3 For personal use only Opening remarks 1 Welcome AGENDA 2 Powerhouse Ventures overview 4:30 Registration 4:40 Powerhouse Ventures overview 3 Portfolio company introductions 4:50 Invert Robotics Neil Fletcher, Exec. Chairman 5:10 CropLogic Jamie Cairns, CEO 5:30 MARS Bioimaging Colin Dawson, Directo
Slide 4: Transforming intellectual property into world-changing businesses
For personal use only Transforming intellectual property into world- changing businesses by following a proven investment pathway
Slide 5: Powerhouse: a Patient Capital investment model
5 For personal use only Powerhouse: a Patient Capital investment model 1 Strong links with university partners for high-quality deal flow 2 Proprietary approach to screening and shaping innovation for predictable success 3 A new model for investing based on the long-term demands of university spinou
Slide 6: Powerhouse process: few to more, not many to few
6 For personal use only Powerhouse process: few to more, not many to few Pre-seed Seed Post-seed Test proof of concept Early revenues Early profits before growth Recruit management Develop business team (often includes model Prepare for liquidity Powerhouse team event embedded) $ $$$ ~2 years ~2 yea
Slide 7: Dynamic, balanced and maturing portfolio
7 For personal use only Dynamic, balanced and maturing portfolio Medical & Agritech & Cleantech & Digital & ICT Healthcare Environmental Engineering Ferronova
Slide 8: Powerhouse Portfolio Analysis
Powerhouse Portfolio Analysis Annual report 8 For personal use only Investment portfolio – as at 30 June 2016 Engineering & Cleantech Digital & ICT & Cleantech Engineering $8.1m, 39.4% $3.0m, 14.6% Me althc He dic are HydroWorks 20.9% Motim 10.7% al & ArcActive 7.2% Modlar 3.1% SolarBright 5.1% Flue
Slide 9: Characteristics of our Portfolio companies
9 For personal use only Characteristics of our Portfolio companies 1 Strong IP position 2 Business models that capture value 3 Strong management and experienced boards 4 Significant addressable markets 5 Global opportunities
Slide 10: Congratulations on TIN100 Awards recognition
For personal use only Powerhouse congratulates CropLogic, Invert Robotics and MARS Bioimaging on TIN100 Awards recognition The TIN100 Awards recognise the top technology exporters in New Zealand in the areas of ICT, High-tech Manufacturing and Biotechnology. Powerhouse introduces: Invert Robotics Cr
Slide 11: Invert Robotics
For personal use only Invert Robotics Neil Fletcher, Executive Chairman Powerhouse 37.4% Powerhouse + Co-investors 64.4% (as at 30 June 2016)
Slide 12: Invert Robotics Limited November 2016
INVERT ROBOTICS For personal use only LIMITED NOVEMBER 2016
Slide 13: The Vision
For personal use only The Vision: Invert Robotics will become a leading global provider of industrial inspection services for mission critical assets. INVERT ROBOTICS. November 2016 2
Slide 14: Incumbents versus innovators
For personal use only High Health & Safety Risks Low Yes Specialist personnel required No Low Inspection Accuracy High High Asset downtime Low High Costs Low No Defendable market position Yes Data warehousing/asset No Yes management capability The The incumbents innovators
Slide 15: Invert Robotics at a glance
INVERT ROBOTICS — AT A GLANCE For personal use only Globally 21st Century Proprietary scalable industrial robotic Blue chip in multiple inspections technology client base industry services platform and market applications Value add Primary market services that validated with will deliver High barrie
Slide 16: Investment synopsis
INVESTMENT SYNOPSIS — A COMPELLING GROWTH STORY WITH YIELD For personal use only 2020 EBITDA Investment NZD$1.3 million Projections for Growth Capital Raised $12m-$15m Post-money valuation Cashflow positive Revenues of NZD$20 - $25 of NZD$10.9 million projections in FY17 million by 2020 in the prima
Slide 17: An established and captive market audience
AN ESTABLISHED AND CAPTIVE MARKET AUDIENCE For personal use only Commercial traction in the International Market validated Australasian demand in technology and marketplace - primary target value proposition Dairy and Food markets Processing INVERT ROBOTICS. November 2016 6
Slide 18: Building solid foundations for growth
BUILDING SOLID FOUNDATIONS FOR GROWTH For personal use only International product trials and demonstrations commence Patented sliding suction Forecast of significant pad drive for robot First Australian revenue growth inspection jobs James Robertson First aviation inspection appointed inaugural CEO
Slide 19: European region largest cow's milk output
For personal use only The European region collectively represents the largest cow’s milk output in the world. Following closely behind this is the North American market. INVERT ROBOTICS. November 2016 8
Slide 20: Focused geographical and sector specific growth plan
A FOCUSED GEOGRAPHICAL AND SECTOR SPECIFIC GROWTH PLAN For personal use only The scale of the dairy and food processing sector alone is sufficiently large enough to drive substantial revenue and profit streams UNFAO annual with modest market penetration objectives cow’s milk 120,000,000 production 2
Slide 21: Distilling down the scale
DISTILLING DOWN THE SCALE For personal use only The Global Testing, The Global Dairy Inspection and and Food Processing Estimated Global &HUWL´FDWLRQ,QGXVWU\ inspections market Inspection 2020 revenue target NZD$250 million Days per Invert Robotics NZD$300 billion annually annum = 50,000 target 10%
Slide 22: Clearly defined market drivers
CLEARLY DEFINED MARKET DRIVERS PROVIDE CONFIDENCE For personal use only The drive towards automating hazardous work practices is growing throughout the developed world Health and Safety is at the Converging with this is the commercial need to efficiently and cost effectively maintain mission critica
Slide 23: The competitive landscape
THE COMPETITIVE LANDSCAPE For personal use only Competing techniques are dependent on people entering the tanks, often working from ropes or scaffolds who have to search on average for 5km to find a single crack Undetected tank faults place people, Invert Robotics will: products, brands Remove the h
Slide 24: Clearly positioned to capitalise
CLEARLY POSITIONED TO CAPITALISE For personal use only Our technology platform enables us to deliver the safest and most accurate inspections services in the stainless steel and non-ferrous inspection markets Industry surveys have indicated that the following Invert Robotics is active in all three o
Slide 25: Powerful first mover advantage
For personal use only With a powerful ´UVWPRYHUDGYDQWDJH Invert Robotics is clearly positioned to rapidly capitalise on material commercial opportunities both domestically and internationally. INVERT ROBOTICS. November 2016 14
Slide 26: Incumbents versus innovators
For personal use only High Health & Safety Risks Low Yes Specialist personnel required No Low Inspection Accuracy High High Asset downtime Low High Costs Low No Defendable market position Yes Data warehousing/asset No Yes management capability The The incumbents innovators
Slide 27: A strengthening intellectual property position
A STRENGTHENING INTELLECTUAL PROPERTY POSITION For personal use only With a patented sliding suction system Applicant: Invert Robotics Ltd at the heart of our platform we control the Title: Robotic Climbing Platform Filing date: 1/10/2012 world-leading technology for inspection of stainless steel ta
Slide 28: International benchmark standard for channel providers
For personal use only Invert Robotics’ services will become the international benchmark standard in delivering value to channel providers and asset owners alike. INVERT ROBOTICS. November 2016 17
Slide 29: A compelling financial proposition
A COMPELLING FINANCIAL PROPOSITION For personal use only PROFORMA PROJECTIONS $14.4M FY2020 Projections Revenues ~$20-25m EBITDA REVENUE ~$12-15m $6.6M EBITDA 1.2M COSTS FY 17 FY 18 FY 19 INVERT ROBOTICS. November 2016 18
Slide 30: A governance structure positioned for growth
A GOVERNANCE STRUCTURE POSITIONED FOR GROWTH For personal use only Neil Fletcher, David Wade, Dr Stephen Hampson, Executive Chairman Director Director With a career spanning over 25 With deep governance experience MD of Powerhouse Ventures. years in international technology focused on financial, com
Slide 31: CropLogic
For personal use only CropLogic Jamie Cairns, Chief Executive Officer Powerhouse 31.3% Powerhouse + Co-investors 62.2% (as at 30 June 2016)
Slide 32: Transforming the agronomy service industry
For personal use only Transforming the agronomy service industry
Slide 33: Investment highlights
Investment highlights For personal use only CropLogic uses complex 90% profit increase for potato 01 05 growers achievable from 6.25% modelling and Internet of Things technologies to predict crop overall yield increase yield outcomes and support Technology validated through field agronomic decision
Slide 34: What is the CropLogic System and how does it differ
What is the CropLogic System and how For personal use only does it differ from current practices? (agronomy + technology) Internet of Things Agronomist CropLogic system CropLogic meets with analyses data system grower and and proposes correlates Recommendations installs probe fertigation proposed pr
Slide 35: The technology
The technology For personal use only Not just a system of probes User management inputs User weather inputs User soil inputs Crop Model Soil Model Demand Supply Predictions Predictions Potential yield Stress Responses Management Schedule 100 80 Output 60 40 20 0 Patent US8671006 Sep Oct Nov Dec Jan
Slide 36: Data validation
Data validation Modelled outputs validate inputs For personal use only 0.32 Volumetric Water Content 0.3 Volumetric Water Content 0.28 Measured 0.32 0.26 Modelled 0.32 0.3 0.24 Volumetric Water Content 0.3 0.22 0.28 Volumetric Water Content 0.28 0.2 0.26 0.18 0.26 0.24 0.24 Date 0.22 Validation incr
Slide 37: Years of research and years of trials
30 years of research and 5 years of trials For personal use only Over 65,000 acres of trials from 2011 with key food processing companies. United States China 504 field trials, 18 field trials, Lamb Weston PepsiCo 29 field trials, Frito-Lay New Zealand Australia 124 field trials, 2 field trials, McC
Slide 38: Revenue growth through commercial roll out of Potato model
Revenue growth through For personal use only commercial roll out of Potato model A two-fold approach 01 02 Recurring revenue model Top down approach utilising our current buyer relationships a. CropLogic agronomy services to growers a. Food processors Transforming the agronomy industry 7
Slide 39: CropLogic Revenue
CropLogic Revenue ~ $25-35 For personal use only A Business to Business REVENUE per-acre per-crop recurring subscription model ~ $10 PHASE 2 ~ $25 PER ACRE ̑ CropLogic System REVENUE PREDICTIVE SERVICES greatly reduces labour and travel costs ~ $5 ̑ CropLogic Systems ̑ Per Acre per annum allows agro
Slide 40: Value for growers
Value for growers For personal use only Up to 90% increase in bottom line END VALUE TO GROWER All figures in $USD Currently With CropLogic Target subscription fees of $25 - $35 Revenue $3,045 $3,235 (+6.25%) per acre per crop Operating Costs Seed $331 $331 Fertilizer and chemicals $702 $690 Water $1
Slide 41: Top down approach – influencers
Top down approach – influencers For personal use only CropLogic has good relationships with many of the major potato processors globally. These buyers like the CropLogic model for three reasons: Reducing costs Supply-chain management Environmental pressures increasing globalisation of the global pop
Slide 42: Size of target market
Size of target market For personal use only 29 million acres USD $1 Billion Annually 1000 acres or more 29 million acres meet Target Farms CropLogic’s Target Farm Irrigated cropping farms of criteria in the USA. 1,000 acres or more At US$35 per acre this is a potential revenue of USD$1 billion per a
Slide 43: Strategic Industry Acquisitions
Strategic Industry Acquisitions For personal use only MARKET BRAND PROFIT PRESENCE SHARE Increase profit Increase market share Increase CropLogic by introducing of the operation brand presence. CropLogic system through resource efficiencies Transforming the agronomy industry 12
Slide 44: USA Strategic Acquisition
USA Strategic Acquisition For personal use only Provides immediate: Footprint in the Acres under Growth largest USA management – opportunities potato-producing currently approx. region 100,000 ̑ Binding Term Sheet signed November 2016 ̑ Settlement 28th February 2017 ̑ Settlement fee on signing S&P T
Slide 45: USA Strategic Acquisition
USA Strategic Acquisition For personal use only Entry into key USA irrigation states 65% 10 Western States represent 65% of all irrigated arces in the USA Transforming the agronomy industry 14
Slide 46: Board of Directors
Board of Directors For personal use only John Beattie Stephen Hampson Peter Roborgh Steve Wakefield Chairman Director Director Director John was Founder Stephen was inaugural Peter has over 20 Steve has been with Chairman of Genesis Chief Executive of the years experience in accounting and managemen
Slide 47: Management
Management For personal use only CEO COO Capital Markets Advisor CTO Jamie Cairns Matthew Journee James Cooper-Jones David Rankin Jamie was the CEO at Snap Matthew has broad operational, James’ career has seen him hold Dave was the CEO of an Internet where he led the project and engineering accounti
Slide 48: CropLogic at a glance
CropLogic at a glance For personal use only 17.49% 31.31% Powerhouse New Zealand Ventures Venture Limited Investment Fund Total capital raised to date NZD$4.7 mil SHARE REGISTER Total Shares on issue 178,733 64 SHAREHOLDERS Last raise price $60/Share 27.65% Capitalisation $10.7 mil Board and Managem
Slide 49: Strong institutional and government support
Strong institutional and government support For personal use only Powerhouse New Zealand Venture Callaghan Plant & Food Ventures Limited Investment Fund (NZVIF) Innovation Limited Research New Zealand The NZVIF was established by Crown Agency set up by the A leading New Zealand based technology the
Slide 50: Milestones for the next months
Milestones for the next 12 months For personal use only 01 02 03 Western USA Australian IPO – planned agronomy firm agronomy firm listing Q2/Q3 2017 acquisition acquisition imminent Transforming the agronomy industry 19
Slide 51: For more information contact
For personal use only For more information contact: Jamie Cairns James Cooper-Jones jamie.cairns@croplogic.com james.cooper-jones@croplogic.com +64 21 645 445 +61 419 978 062 Transforming the agronomy industry 20
Slide 52: MARS Bioimaging
For personal use only MARS Bioimaging Colin Dawson, Director (and Chief Operating Officer, Powerhouse) Powerhouse 8.5% Powerhouse + Co-investors 12.8% (as at 30 June 2016)
Slide 53: Spectral molecular imaging
For personal use only Spectral molecular imaging single machine single scan Location: New Zealand providing Founded: 2007 tissue constituents Industry: Medical Imaging Stage: 1PTUTFFE quantification of biochemistry lower drug development costs spectral molecular imaging – a new tool for drug discove
Slide 54: Company overview
company overview Intellectual property: CERN For personal use only why MARS Bioimaging? proprietary strong IP Target markets: growth markets pharmaceutical existing customers research academic high value exit clinical Reference customers: Mayo Clinic, USA molecular information – comparison with trad
Slide 55: Industry drivers
For personal use only industry drivers drug discovery – preclinical “In vivo imaging is expected to trials have greatest impact in drug reduced costs development…” Dr John Comley faster development Drug Discovery World, 2011 better information spectral molecular imaging – a new tool for drug discove
Slide 56: Opportunity
For personal use only opportunity medical imaging US$27.4 billion pre-clinical imaging US$1.7 billion, 14% CAGR spectral molecular imaging – a new tool for drug discovery
Slide 57: Solution
n Stan solution n Stan n Asso Physio MARS is a new imaging modality – spectral CT Compare and contrast: traditional broad spectrum CT image (above) and MARS Spectral-CT image (below) n Ethe phys For personal use only Geometry n Acce n Scan diameter: adjustable range 20-100 mm n Three n Scan length:
Slide 58: Spectral imaging of joints
Preclinical scanner has been installed in TQFDUSBMJNBHJOHPGKPJOUT School building– now re-occupied follow researchers is much improved. Pilot study with Silverfern Farms confirm For personal use only Engagement with the National Radiatio SFNPWBMPGCFBNIBSEFOJOHBSUJGBDUT 4 graduated PhD students, star
Slide 59: Cartilage health measurement
Preclinical scanner has been installed in TQFDUSBMJNBHJOHPGKPJOUT School building– now re-occupied follow researchers is much improved. NFBTVSFNFOUPGDBSUJMBHFIFBMUIJO Pilot study with Silverfern Farms confirm For personal use only Engagement with the National Radiatio FYDJTFEIVNBOUJCJBMDBSUJMBHF 4 g
Slide 60: Spectral imaging of blood vessels
TQFDUSBMJNBHJOHPGCMPPEWFTTFMT CFUUFSDIBSBDUFSJTBUJPOPGBUIFSPNBQMBRVF For personal use only GVOEFECZ/;)FBSU'PVOEBUJPO spectral molecular imaging – a new tool for drug discovery
Slide 61: Spectral imaging of blood vessels
TQFDUSBMJNBHJOHPGCMPPEWFTTFMT CFUUFSDIBSBDUFSJTBUJPOPGBUIFSPNBQMBRVF For personal use only spectral molecular imaging – a new tool for drug discovery
Slide 62: Cancer imaging
DBODFSJNBHJOH CFUUFSDIBSBDUFSJTBUJPOBOECFUUFSESVHEFMJWFSZ For personal use only QSPPGPGDPODFQU "VOBOPQSPCFT NFBTVSFEJO-FXJT-VOH DBODFSNPEFM spectral molecular imaging – a new tool for drug discovery
Slide 63: Products
products MARS spectral CT systems For personal use only MARS spectral CT camera systems spectral molecular imaging – a new tool for drug discovery
Slide 64: MARS camera – the heart of the scanner
MARS camera – the heart of the scanner photon processing For personal use only Medipix3 detectors proprietary hardware & software solutions spectral molecular imaging – a new tool for drug discovery
Slide 65: Technology advantage
technology advantage standard CT For personal use only Xray source B/W dual energy CT MARS: structure & function Xray source B/W Xray source B/W MARS CT Xray source Medipix Optical Micro-CT Micro-PET Micro-SPECT Micro-MRI HF-US Imaging imaging metal (e.g. Ti) scaffolds Disease Progression Muskoskele
Slide 66: Go to market strategy
go to market strategy reference customers: For personal use only 1. preclinical small animal imaging 2. OEM spectral CT camera 1 systems 3. other CT scanners or camera systems 2010 ANNUAL REPORT spectral molecular imaging – a new tool for drug discovery
Slide 67: Team
team Phil Butler For personal use only team Phil Butler – CEO chair Anthony Butler – CTO Basic Elements technical & clinical team Anthony Butler scientific advisory Logo Misuse 2.1 director 1 $PMJO%BXTPO EJSFDUPS Master Positive Logo – For use on white or light Master Negative Logo – For use on blac
Slide 68: Taking MARS to humans
For personal use only UBLJOH."34UPIVNBOT “Clearly, the next major step in our field is spectral CT…” Professor Ge Wang Clark & Crossan Endowed Chair Director GVOEFECZ/;HPWFSONFOU Biomedical Imaging Cluster /;NJMMJPO o Rensselaer Polytechnic Institute spectral molecular imaging – a new tool for drug
Slide 69: Panel session
For personal use only Panel session Chairman: Jo May (Lodge Partners)
Slide 70: Thank you
For personal use only Thank you Contact details: Stephen Hampson Managing Director +64 27 227 9854 stephen.hampson@powerhouse-ventures.co.nz Paul Viney CFO/Company Secretary +64 21 084 72029 paul.viney@powerhouse-ventures.co.nz Greg Slade Investor Relations greg@sladeir.com +61 48 891 7882
Slide 71: Portfolio Appendix
For personal use only Powerhouse Ventures Limited Portfolio Appendix
Slide 72: Post-seed companies
17 Post-seed companies For personal use only ArcActive is developing a carbon fibre negative electrode High-volume crop growers and processors have significant Globally, environmental pressures are driving the increase for lead acid batteries to improve fuel economy in Start- challenges ahead in ord
Slide 73: Post-seed companies
18 Post-seed companies For personal use only Within the food-processing industry, food-safety is driven Pharmaceutical companies currently spend ~US$1.5b The architecture and construction industry is going through by eliminating bacterial contamination which can be developing each new drug. It can t
Slide 74: Post-seed companies
19 Post-seed companies For personal use only Volatile organic compounds (VOCs) are organic chemicals, many of which are dangerous to human health or cause harm to the environment. However, detection and monitoring is difficult. Syft uses technology developed at the University of Canterbury and known
Slide 75: Seed companies
20 Seed companies For personal use only The global mobile marketing sector is a high-growth area SolarBright is positioned to capitalise on the LED and The food industry is driven by food-safety. Detection of that is seeing innovation as technology and marketing mix, Solar LED lighting phenomena tha
Slide 76: Pre-seed companies
21 Pre-seed companies For personal use only AuramerBio is a point of care biosensor company. Its Cancer immunotherapy helps to stimulate a patient’s own Increased industrial efficiency and tighter environmental novel technology allows for the accurate measurement immune system to kill cancerous tiss
Slide 77: Pre-seed companies
22 Pre-seed companies For personal use only Ferronova EdPotential is a SaaS product for data analytics in the Ferronova is a magnetic probe and tracer company that Over 2 Billion people use English to communicate on a education sector that can accurately assess a student’s provides improved cancer s
Slide 78: Pre-seed companies
23 Pre-seed companies For personal use only Hi-Aspect is developing a range of new ingredients for the Koti Technologies is developing coatings that self clean, Objective Acuity has developed a new technology for cosmetics and healthcare industries, based on its protein destroy bacteria and viruses
Slide 79: Pre-seed companies
24 Pre-seed companies For personal use only Many industrial and commercial operations manage Mammography is the dominant method of breast cancer A large number of patients present in Emergency controlled environments, where variables such as screening in New Zealand. However, mammograms are Departme
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