Elron Ventures Ltd · TASE:ELRN
Elron Ventures — Elron Electronic Industries — Investor Presentation (March 2013)
35 slides from Elron Ventures's investor presentation, Mar 13, 2013
Slide 1: Investor Presentation / March 2013
INVESTOR PRESENTATION / MARCH 2013
Slide 2: Forward-Looking Information
ELRON orward-Looking Information ‘This presentationis for infriiation purposes only. By this presentation, iron doesnot intend to solic offers to purchase ts securities ad the presentation doesnot constitute ‘nirwitation to receive such offers. Eon may make improvements and/or changesin the {feature
Slide 3: 2010-2012: Back to a Technology Holding Company
ELRON 2010-2012: BACK TO A TECHNOLOGY HOLDING COMPANY ELRON
Slide 4: Focus on Medical Devices
ELRON 2010-2012: BACK TO A TECHNOLOGY HOLDING COMPANY FOCUS ON MEDICAL DEVICES + 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 internati
Slide 5: Focus on Medical Devices: $150m invested in med-tech
ELRON 2010-2012: BACK TO A TECHNOLOGY HOLDING COMPANY FOCUS ON MEDICAL DEVICES $150m invested by Elron in med-tech companies during the last 5 years GlyEN, pocameeY $8 SmartWave worarysion” CD) gy (BorainsGate CartiHeal ELRON
Slide 6: Specialty over Diversity: G&A cost decrease
ELRON 2010-2012: BACK TO A TECHNOLOGY HOLDING COMPANY SPECIALTY OVER DIVERSITY 60.. decrease in corporate G&A Costs (between 2008 to 2012) + Appointment of new management + Personnel reduced by half ELRON
Slide 7: Specialty over Diversity: fewer group companies
ELRON 2010-2012: BACK TO A TECHNOLOGY HOLDING COMPANY SPECIALTY OVER DIVERSITY From 2008 to 2012 the number of group companies was reduced by 50.. ELRON
Slide 8: Since 2009, Elron led exits amounting to $400M
ELRON 2010-2012: BACK TO A TECHNOLOGY HOLDING COMPANY SINCE 2009, ELRON LED EXITS AMOUNTING TO $400M IN THE AGGREGATE ELRON
Slide 9: Specialty over Diversity: investment approach
ELRON 2010-2012: 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 with s
Slide 10: Our Strategic Alliance with Rafael
ELRON 2010-2012: 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 Rafael - Ad
Slide 11: Our Strategic Alliance: Given Imaging example
ELRON 2010-2012: BACK TO A TECHNOLOGY HOLDING COMPANY OUR STRATEGIC ALLIANCE Combining Rafael's extensive scientific know-how, c advanced R&D capabilities, technological innovation and resourcefulness with Elron's strong financial base, access — to capital markets, management skills and strategic ex
Slide 12: 2010-2012 Finance: From Debt to Dividend Distribution
ELRON 2010-2012/finance FROM DEBT TO DIVIDEND DISTIBUTION ELRON
Slide 13: Cumulative gain since 2010 from exits
ELRON 2010-2012/tinance FROM DEBT TO DIVIDEND DISTIBUTION Cumulative gain Medingo & since 2010: $62m Netvision Teledata sale sale. 2 isa 6 Wavion nasns: sale _ 10 ada sale °4) Medingo [gg 5 proceeds = 3DV a sale a1 ay = sa ao as & & & @ ew & Q we & % Lay Wg Yang Way Way May Wy Way Ma, Wa, Wey MH, yy
Slide 14: Cumulative net cash since Q1/09
ELRON 2010-2012/tinance FROM DEBT TO DIVIDEND DISTIBUTION Cumulative net cash since Q1/09: $68; (before dividend) ™ so 43.0 497 433 : 381 31a : 30.0 ms 270 mel 212 21.0 , 20 2 ° 10 a2 zo : 15m dividend 20 +0 320 ty 761 39.0 “50 g Wa, Wo Mey, Va, Wy, My, Ui, Vz, WM, My, Mi, Hy, MH, % ey Yay Yay Wag L
Slide 15: Investments and proceeds 2009-2012
ELRON 2010-2012/tinance FROM DEBT TO DIVIDEND DISTIBUTION ELRON 1559 2010 2011 investments Ets 2009-2012: me Proceeds of ~$280m Investments of ~: (primarily medtech GekaeeltD 1 1 1 “ 360 9 2012
Slide 16: Current Resources
ELRON 2010-2012/tinance FROM DEBT TO DIVIDEND DISTIBUTION CURRENT RESOURCES $25m cash balance as of Dec. 31, 2012 $251M anutitized credit ine from SVB $20m net cash balance at RDC as of Dec. 31, 2012 We continue to seek new investment opportunities in the medical device industry, and have resources
Slide 17: Catalysts 2013
ELRON 2013 > CATALYSTS ELRON
Slide 18: Major Group Holdings
ELRON 2013 > CATALYSTS MAJOR GROUP HOLDINGS — shorehotsings leon sinestment GlyEN ord learn Gl medical devices and poneor [319% vs af eapsuleendoscop (6.57% by Roc) _|NA POCARED real-time & fly automated microbioigy i Iaboratry system 41% [s25m erainsc reatmentotschamic stroke in 24 window BrainsGat
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 ~$2im by Elron Johnson & Johnson, Boston :ango, Cipio Partners, Main partner Scientific, Device for treating ischemic stroke in 24 hour window post sympto
Slide 20: BrainsGate: cost and incidence of stroke
CATALYSTS BrainsGate The direct and indirect cost of stroke in the U.S. in 2010 was estimated at $73.7b 1 5 ion people suffer a stroke worldwide each year Of, °F stroke victims receive treatment 5 2/0 inthe limited 3-4.5 hour window 15-30% permanent aisanieg ‘Sources: World Health Organization websi
Slide 21: BrainsGate clinical trial and 2013 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 Diagnostics = Elron's holding: 41% Founded: 2004 = First investment by Elron: 2007 = ~$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 system i
Slide 23: Pocared: microbiology diagnostic market
CATALYSTS POCARE! Diagnosti 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 fo negative results, after antibiotics have been unnecessarily administered Sources:
Slide 24: Pocared CE certification and 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 (March 2013) 2012 revenues $181m; 201 revenues $178m Cash --$124m (as of December 31, 2012) In 2012, Given Imaging acquired SmartPil, an ingestible capsule that uses sensor technology to measure pH, pressure and temperature in the gastroi
Slide 26: 2014+: SmartWave, Kyma, CartiHeal, Notal Vision
ELRON 2014 + SMARTWAVE KYMA CARTIHEAL NOTAL VISION ELRON
Slide 27: CartiHeal
ELRON 2014+ y ‘ 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 osteochondral
Slide 28: SmartWave
ELRON 2014+ ELRON $8 SmartWave Etron’s holding (through RDC): 50% Founded in 2011 by RDC. + $1.5minvested in company to date. ‘Miniature implantable atrial defibrillator. + The defibritator immediately and automatically detects and terminates atrial {ibrilation (AF) episodes (a type of irregular hea
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. Miniature device for the continuous remote monitoring of chronic heart {allure (CHF) patients, inserted beneath the skin or attached to the patient's torsoin patc
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 {faci
Slide 31: Financials 2012
ELRON 2012 > FINANCIALS ELRON
Slide 32: Financials: public and private holdings, market value
ELRON 2012 > FINANCIALS. Public Holdings ) (Market valueas of March8, 2013) Given Imaging 3308 Other holdings 03 Total Public Holdings u13 Private Holdings! (Book valueas of December 31, 2012) Pocared 18 BrainsGate 30 Jordan Valley 122 Other holdings? 43 Total Private Holdings 33 inancial Assets, ne
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 tec
Slide 35: Visit us at elron.com
visit us at elron.com
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