Elron Ventures Ltd · TASE:ELRN

Elron Ventures — Investor Presentation (May 2014)

34 slides from Elron Ventures's investor presentation, May 2014

  1. Slide 1: Discover. Innovation

    DISCOVER. INNOVATION

  2. Slide 2: Disclaimer

    This presentation is for information purposes only. By this presentation, Elron does not 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 the features or content presented

  3. Slide 3: Seeking to Change the Face of Healthcare

    SEEKING TO CHANGE THE FACE OF HEALTHCARE

  4. Slide 4: News

    NEWS  Given Imaging sale completed: $107m gain recorded  Increased holdings in Pocared $284m exit proceeds from 41% to 48%  5,600 out of 15,000 samples $280m cash balance collected for Pocared’s trial  Interim analysis of BrainsGate’s $102m profit trial completed  Notal Vision was granted a CPT

  5. Slide 5: Snapshot

    SNAPSHOT  ~$570m in exit proceeds since BRAINSGATE 2009 STROKE CARE 30% invested (Elron) invested (total)  ~$100m invested in med-tech POCARED companies since 2009 MICROBIOLOGY 48% invested (Elron) invested (total)  The cumulative profit since 2009: $171m NOTAL VISION AMD 22% invested (Elron) inv

  6. Slide 6: Creating Value

    CREATING VALUE  Elron shares are traded on the TASE and OTC in the U.S.  Market cap (May 12, 2014): $299m  Indexes: Biomed, TA TechElite, Midcap TA, Mid50, Bluetech  Major shareholders: DIC (50%), Yalin Lapidot (11.4%), Meitav Dash (6.7%) 10,000,000  >50% increase in institutional ownership ove

  7. Slide 7: Elron. Results

    ELRON. RESULTS

  8. Slide 8: Results: Exit Proceeds

    RESULTS  ~$570m in exit proceeds since 2009 June 2009 Oct. 2009 May 2010 June 2010 Sept. 2011 Nov. 2011 Nov. 2012 Feb. 2014 8

  9. Slide 9: Results: Cumulative Profit

    RESULTS  The cumulative profit since 2010: $182m 2007 2008 2009 2010 2011 2012 2013 Q1/14 9

  10. Slide 10: Results: Cumulative Cash Flow

    RESULTS  Cumulative cash flow since Q2/09: $267m  $15m dividend distributed in 2012  $51m in loans repaid to banks and controlling shareholders  No debt 2008 2009 2010 2011 2012 2013 Q1/14 10

  11. Slide 11: Partnership

    PARTNERSHIP

  12. Slide 12: Asset: RDC and Rafael

    ASSET  RDC: jointly held by Elron (50.1%) & Rafael (49.9%)  The Rafael-Elron agreement is exclusive and indefinite  The agreement is in effect as long as Elron maintains a holding in RDC 2nd largest government-owned defense company in Israel  $74m invested by RDC in companies since 2009 2013 net

  13. Slide 13: The Case of Given Imaging

    ASSET THE CASE OF GIVEN IMAGING  Given Imaging was established in 1993 by RDC  RDC’s total investment in the company: $6.1m  Q1/14: the company’s acquisition by Covidien for $30 per share in cash  The consideration represents a $1b valuation  Our share in the consideration: Elron- $204m, RDC- $

  14. Slide 14: Elron. Promise

    ELRON. PROMISE

  15. Slide 15: BrainsGate

    INNOVATION Elron’s holding: 30% Founded: 2000 Treatment of ischemic stroke in a 24 hour window post symptom onset First investment: 2005 Total investment: $70m ($21m Current treatment (tPA protein) is approved for use during by Elron) a 3-4.5 hour window only Main partners: Johnson & Johnson, Boston

  16. Slide 16: BrainsGate: Stroke Trial

    INNOVATION $95b is the estimated cost of stroke in the U.S. projected for In 2010 BrainsGate completed a clinical trial on 300 patients 2015 whose results strengthened the assessment that the 15m people suffer a stroke treatment is effective and safe worldwide each year 5% of stroke victims receive

  17. Slide 17: BrainsGate Treatment Mechanism

    INNOVATION Restores blood flow to the Electrical stimulation induces blocked blood vessel dilation of cerebral blood vessels, and thus augments Due to the temporary blood flow interruption in blood flow, the blood vessel becomes The stimulation avoids brittle manipulating the blood clot, and treats

  18. Slide 18: Pocared

    INNOVATION Elron’s holding: 48% Founded: 2004 Real-time and automated system for infectious disease diagnosis, based on optical technology First investment: 2007 Total investment: $74m ($34m Designed for use by major microbiological laboratories by Elron) and hospitals Main partner: SCP Vitalife Mea

  19. Slide 19: Pocared: FDA Trial

    INNOVATION 125m urine cultures are performed each year in the U.S. The system is CE certified since December 2011 70% of urine cultures return negative, after antibiotics have Pocared is conducting a trial at 5 of the world's leading medical been unnecessarily administered centers The trial’s purpos

  20. Slide 20: Pocared System

    INNOVATION a complete cartridge transfer carousel to urine sample cartridge carousel optical analyzer module results… 20

  21. Slide 21: Notal Vision

    INNOVATION Elron’s holding: 22% Founded: 2000 Remote monitoring of patients at risk of vision loss from AMD First investment: 2003 Total investment: $32m ($7.5m AMD destroys sharp, central vision, necessary for by Elron) common tasks such as facial recognition, driving, reading, Main partners: Everg

  22. Slide 22: Notal Vision: NEI Study

    INNOVATION AMD is a leading cause of severe vision loss and blindness in The National Eye Institute invited Notal Vision to conduct a adults over age 60, and affects study of 1500 patients in 44 major U.S. retinal centers ~9.1m individuals in the U.S. Due to positive clinical results at the interim

  23. Slide 23: ForeseeHome Device

    INNOVATION The device detects even The Data Monitoring Center small changes in vision alerts patient & doctor 23 Notal Vision website: http://www.notalvision.com/

  24. Slide 24: CartiHeal

    INNOVATION Elron’s holding: 32% Founded: 2009 Implant for repairing cartilage and osteochondral defects in loadbearing joints, such as the knee First investment: 2012 Total investment: $13m ($5m by The implant has a unique structure, comprising of marine Elron) aragonite with biological modification

  25. Slide 25: CartiHeal: Clinical Trials

    INNOVATION ~35m people in the U.S. alone suffer from cartilage injuries The implant is CE certified since April 2011 The cartilage repair market is expected to exceed $3b Preclinical studies demonstrated cartilage & bone regeneration at the implantation site The company is conducting a series of cli

  26. Slide 26: CartiHeal Implant Results

    INNOVATION 1 day post-op: 6 months post-op: 26

  27. Slide 27: Kyma

    INNOVATION Elron’s holding: 29% Founded: 2008 A system for continuous remote monitoring of CHF patients First investment: 2009 Total investment: $11.5m The system is built around a non-invasive and very small ($9.5m by RDC) sensor attached to the patient Main partner: Ganot Based on unique radar tec

  28. Slide 28: Kyma: Clinical Trials and FDA

    INNOVATION ~4.3m people suffer from CHF in the U.S. The device is CE certified for hospital use since October 2013 $24b is the estimated cost of CHF in the U.S. projected for The company is conducting a series of clinical trials in diverse 2015 treatment settings (ICUs, CHF units, nursing homes, & o

  29. Slide 29: Elron. Innovation

    ELRON. INNOVATION KEEPING TRACK OF YOU... 29

  30. Slide 30: Promise: Anticipated Developments 2014-2015

    PROMISE  2014-2015: significant 380 green light from patient patients DSMB to developments anticipated in recruited continue study recruitment Elron’s companies 15,000 UTI FDA decision 4500 UTI samples on UTI , FDA samples collected, FDA submission collected study completed for 2nd application NEI

  31. Slide 31: Value

    VALUE  Investments in companies Holdings in companies 1 Book value at Amount invested amount to ~$110m, while their Mar. 31, 2014 ($m) ($m) book value amounts to ~$38m Associates and consolidated companies: Pocared 5.3 34.3  Book value of associates & BrainsGate 0.3 21.2 consolidated companies: Ot

  32. Slide 32: Opportunity

    OPPORTUNITY Proven expertise in identifying opportunities, building technology leaders, and exiting holdings Operational holding company with the flexibility to provide its group companies with long-term commitment Strategic partnership with Rafael – access to state-of-the- art military technologies

  33. Slide 33: Legacy

    LEGACY “ 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’

  34. Slide 34: Elron. Opportunity. Thank you.

    ELRON. OPPORTUNITY Thank you.

Elron Ventures — Investor Presentation (May 2014) on 6ix