Elron Ventures Ltd · TASE:ELRN
Elron Ventures — Elron Electronic Industries — Investor Presentation (May 2013)
35 slides from Elron Ventures's investor presentation, May 9, 2013
Slide 1: Investor Presentation / May 2013
Slide 2: Forward-Looking Information
ELRON Forward-Looking Information This presentationis for inforttiation purposes only. By this presentation, Elron doesnot intend to solicit offers to purchase its securities and the presentation does not constitute an invitation to receive such offers. Elron may make improvements and/or changes in
Slide 3: 2010-2013: Back to a Technology Holding Company
ELRON 2010-2013: BACK TO A TECHNOLOGY HOLDING COMPANY ELRON
Slide 4: Focus on Medical Devices
ELRON 2010-2013: BACK TO A TECHN! IOLOGY HOLDING COMPANY FOCUS ON MEDICAL DEVICES ELRON Our main focus since 2009 has been investing in medical device companies. The value of M&As in this industry in the U.S. and Europe totaled $35b over the last year. We leverage our know-how, expertise, and intern
Slide 5: $150m invested in med-tech companies over 5 years
ELRON 2010-2013: BACK TO A TECHNOLOGY HOLDING COMPANY FOCUS ON MEDICAL DEVICES $150m invested by Elron in med-tech companies during the last 5 years GIyEN BoganEe 32 SmartWave norarvison” CD gy (MorainsGate CartiHeal ELRON
Slide 6: Specialty over Diversity: G&A cost decrease
ELRON 2010-2013: BACK TO A TECHNOLOGY HOLDING COMPANY SPECIALTY OVER DIVERSITY 60.. decrease in corporate G&A Costs (between 2008 to 2013) + Appointment of new management + Personnel reduced by half ELRON
Slide 7: Specialty over Diversity: fewer group companies
ELRON 2010-2013: BACK TO A TECHNOLOGY HOLDING COMPANY SPECIALTY OVER DIVERSITY From 2008 to 2013 the number of group companies was reduced by 50.. ELRON
Slide 8: Since 2009, Elron led exits amounting to $400M
ELRON 2010-2013: BACK TO A TECHNOLOGY HOLDING COMPANY SINCE 2009, ELRON LED EXITS AMOUNTING TO $400M IN THE AGGREGATE INGO OID xactcrstion” 7, Discount Investment and Investments for $60m Pyleledata WAVION Sale of company to Enablence for $50m Sele‘ of company to: DV Systems Aaron f6F$30™ Sv ne SBR
Slide 9: Specialty over Diversity: investment criteria
ELRON 2010-2013: BACK TO A TECHNOLOGY HOLDING COMPANY SPECIALTY OVER DIVERSITY = Investments which afford us significant influence and active involvement ™ Early-stage companies, where control can be acquired at a reasonable value = Flexibility for long-term support and commitment = Game changers wi
Slide 10: Our Strategic Alliance with Rafael
ELRON 2010-2013: BACK TO A TECHNOLOGY HOLDING COMPANY OUR STRATEGIC ALLIANCE RAFAELG) ELRON Strategic partnership between Elron and Rafael, through a jointly owned subsidiary, that has access to state of the art technologies developed by Rafael and exclusive rights to commercialize them in civilian
Slide 11: Our Strategic Alliance: Rafael and Given Imaging
ELRON 2010-2013: BACK TO A TECHNOLOGY HOLDING COMPANY OUR STRATEGIC ALLIANCE Combining Rafael's extensive scientific know-how, Cc advanced R&D capabilities, technological innovation and , resourcefulness with Elron's strong financial base, access to capital markets, management skills and strategic e
Slide 12: 2010-2013 / Finance: From Debt to Dividend Distribution
ELRON 2010-2013/ finance FROM DEBT TO DIVIDEND DISTIBUTION ELRON
Slide 13: Cumulative gain since 2010
ELRON 2010-2013/finance FROM DEBT TO DIVIDEND DISTIBUTION Cumulative gain Medingo & since 2010: $57m ____ Teledata Netvision ale 20 sale ae 82.4 15 7 Wavion Syne-Rx sale 10 add'l sale 3 54) Medingo pe a _ 5 3DVv proceeds 2 sale 3a Bg . | | | = | | 5 6.7
Slide 14: Cumulative net cash since Q1/09
ELRON 2010-2013/finance FROM DEBT TO DIVIDEND DISTIBUTION Cumulative net cash since Q1/09: $67m (before dividend) 50 43.0 — 40.7 © 38.1 311 so 30.0 27.5 27.0 20s 21.2 21.0 19.5 ¢ 20 “ 13.2 10 3.2 Eo & $15m -10 dividend -20 -30 -32.0 -40 -36.1 -39.0 -50 SCSeeeeesyeseUyesysyeseeyeesyyyeye ag Wy Weg eg
Slide 15: Investments and exit proceeds 2009-2012
ELRON 2010-2013/finance FROM DEBT TO DIVIDEND DISTIBUTION 180 160 ‘$M. 40 20 68.5 155.9 36.6 2010 minvestments 35.8 200 2011 Exits 2009-2012: Exit proceeds of ~$280m Investments of ~$125m (primarily medtech companies) 36.6
Slide 16: Current Resources
ELRON 2010-2013/finance FROM DEBT TO DIVIDEND DISTIBUTION CURRENT RESOURCES $24m cash balance as of Mar. 31, 2013 $25m unutilized credit line from Silicon Valley Bank $20m net cash balance at RDC as of Mar. 31, 2013 We continue to seek new investment opportunities in the medical device industry, and
Slide 17: Catalysts 2013
ELRON 2013 > CATALYSTS ELRON
Slide 18: Major Group Holdings
ELRON 2013 > CATALYSTS MAJOR GROUP HOLDINGS Business [Shareholdings Elron’sinvestment GlyEN world leader in GI medical devices and pioneer |30% vi lof capsule endoscopy (8.49% by RDC) _|NA beneeee real-time & fully-automated microbiology = laboratory system 41% $25m DI ae treatment of ischemic strok
Slide 19: BrainsGate
ELRON 2013 > CATALYSTS @ BrainsGate Elron's holding: 30% Founded: 2000 First investment by Elron: 2005 ~$70m have been invested to date, of which ~$21m by Elron Main partners: Johnson & Johnson, Boston Scientific, Pitango, Cipio Partners Device for treating ischemic stroke in 24 hour window post sym
Slide 20: BrainsGate: stroke market
CATALYSTS BrainsGate The direct and indirect cost of stroke in the U.S. in 2010 was estimated at $73.7b 15 million people suffer a stroke worldwide each year in the limited 3-4.5 hour window 15-30% permencatty dsabted of stroke victims receive treatment 5% ‘Sources: World Health Organization website
Slide 21: BrainsGate clinical trial catalyst
ELRON 2013 > CATALYSTS ELRON In 2010 BrainsGate completed a clinical trial on approximately 300 patients, whose results strengthened the assessment that BrainsGate's treatment has a considerable clinical effect, which is stronger than the effect found in current treatments. Since June 2011, BrainsGa
Slide 22: Pocared Diagnostics
ELRON 2013 > CATALYSTS POCARED Y Diagnostics 7 » Elron's holding: 41% = Founded: 2004 » First investment by Elron: 2007 = 7$61m have been invested to date, of which ~$25m by Elron = Main partner: SCP Vitalife + Real-time and automated microbiology laboratory system, using optical technology = The sy
Slide 23: Pocared: microbiology diagnostic market
ELRON 2013 > paris POCARED_Y Diagnostics °F The global microbiology diagnostic market at 2013 is expected to total approximately $4.5b million urine cultures are 125 performed each year in the U.S. of urine cultures return with 70% negative results, after antibiotics have been unnecessarily administ
Slide 24: Pocared catalyst: FDA trial
ELRON 2013 > CATALYSTS ELRON In December 2011, the company received CE certification. During 2013, Pocared expects to commence the collection of urine samples for a diagnostic trial to prove the efficacy of its system's first application, UTI diagnosis. The trial is expected to support its planned F
Slide 25: Given Imaging
ELRON 2013 > CATALYSTS ELRON GlyEN IMAGING Market cap - ~$500m (May 2013) QI/13 revenues - $41m ;2012 revenues - $181m Cash - ~$122m (as of Mar. 31, 2013) In 2012, Given Imaging acquired SmartPill, an ingestible capsule that uses sensor technology to measure pH, pressure and temperature in the gastr
Slide 26: 2014+: SmartWave, Kyma, CartiHeal, Notal Vision
ELRON 2014 + SMARTWAVE KYMA CARTIHEAL NOTAL VISION ELRON
Slide 27: CartiHeal
ELRON 2014+ r SV) CartiHeal + Elron's holding: 24% + Founded in 2009; First investment by Elron in 2012. + $7.85m invested in company to date, including $2.5m by Elron. + Other investors include Accelmed (owned by Mori Arkin) and Access Medical / Ventures. + Implants for repairing cartilage and oste
Slide 28: SmartWave
ELRON 2014+ ELRON 32 SmartWave + Elron's holding (through RDC): 50% + Founded in 2011 by RDC. + $1.5m invested in company to date. + Miniature implantable atrial defibrillator. + The defibrillator is designed to immediately and automatically detect and terminate atrial fibrillation (AF) episodes (a
Slide 29: Kyma
ELRON 2014+ Oo + Elron's holding (through RDC): 37% ¢ + Founded in 2008; First investment by Elron in 2009. ¥ + $7.5m invested in company to date. 4 + Miniature device for the continuous remote monitoring of chronic heart . . failure (CHF) patients, inserted beneath the skin or attached to the patie
Slide 30: Notal Vision
ELRON 2014+ NOTAL VISION™ Elron's holding : 23% Founded in 2000; First investment by Elron in 2003. $22m invested in company to date, including $5.6m by Elron. Remote monitoring of patients at risk of vision loss from AMD. AMD destroys sharp, central vision, necessary for common tasks such as facial
Slide 31: Financials Q1/13
ELRON Q1/13 > FINANCIALS ELRON
Slide 32: Public and Private Holdings Value
ELRON Public Holdings! (Market valueas of May 8, 2013) Given Imaging Other holdings Total Public Holdings Private Holdings? (Book valueas of March 31, 2013) Pocared BrainsGate Jordan Valley Other holdings? Total Private Holdings Financial Assets, net (as of March 31, 2013) Debt (as of March 31, 2013
Slide 33: Looking ahead, Elron should always understand
ELRON Looking ahead, Elron should always understand that the ever evolving changes in the high tech industry will be exponential, and therefore, success will depend on choosing the right niches in the world market in which it can maintain and improve its relative advantage. Mr. Uzia Galil, Elron's f
Slide 34: The Bottom Line
ELRON ELRON > THE BOTTOM LINE Unique access to Israel's world-class human capital, R&D resources, universities, & scientific institutions An operational holding company with the ability to provide long-term commitment to group companies Strategic alliance with Rafael and access to state of the art m
Slide 35: Visit us at elron.com
visit us at elron.com
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