Innventure, Inc. · NASDAQ:INV
Innventure — SPAC Merger (April 2024)
76 slides from Innventure's SPAC merger presentation, Apr 22, 2024
Slide 1: Innventure Analyst Day
Innventure Analyst Day April 22, 2024
Slide 2: Introduction
Lucas Harper Chief Investment Officer Introduction
Slide 3: Disclaimer
Disclaimer 3 This presentation (the “Presentation”) has been prepared by Innventure, LLC (“Innventure” or the “Company”) and Learn CW Investment Corporation (“Learn CW” or the “SPAC”) in order to assist interested parties in conducting their own evaluation of the potential business combination of th
Slide 4: Disclaimer
Disclaimer 4 expectations regarding Innventure’s and the Innventure Companies’ strategies and future financial performance, including their future business plans, expansion and acquisition plans or objectives, prospective performance and opportunities and competitors, revenues, products and services
Slide 5: Disclaimer
Disclaimer 5 the possibility that Learn CW and/or Innventure may be adversely affected by other economic, business, and/or competitive factors; the potential characterization of Innventure as an investment company subject to the Investment Company Act of 1940; operational risk; and the risk that the
Slide 6: Disclaimer
Disclaimer 6 Trademarks In addition to trademarks, service marks, trade names, copyrights and logos of Innventure and its subsidiaries contained herein, this presentation contains trademarks, service marks, trade names, copyrights and logos of other companies, which are the property of their respect
Slide 7: Innventure Analyst Day 2024 Agenda
9:00am Welcome & Opening remarks Lucas Harper, Chief Investment Officer 9:05am What is Innventure? Bill Haskell, Chief Executive Officer 9:30am Strategic Partnerships Tom Cripe, Head of Strategic Partnerships 9:45am DownSelect® Colin Scott, Vice President, Head of DownSelect® 10:15am Break 10:30am N
Slide 8: Leadership – Executive Committee
Leadership – Executive Committee 8 Bill Haskell – Chief Executive Officer Bill serves as Chief Executive Officer for Innventure. Previously, he was a co-founder and President of XL TechGroup that created the foundational business building methodology upon which Innventure is based. Bill has worked w
Slide 9: Leadership – Executive Committee
Lucas Harper, CAIA – Chief Investment Officer, Investment Committee Lucas is a member of the Investment Committee and serves as Chief Investment Officer of Innventure and brings over 20 years of experience in managing investment teams, building companies / business units and the seeding and buildout
Slide 10: Innventure Introduction
10 Innventure Introduction Innventure founds, funds, and operates companies around transformative, sustainable technology solutions acquired or licensed from Multinational Corporations (MNCs). Disruptive Conglomerate Model Risk Adjusted Investment Philosophy Closed Loop Model 1 2 3 Our business mode
Slide 11: Company Overview
Bill Haskell Chief Executive Officer Company Overview
Slide 12: What is Innventure's Core Mission?
What is Innventure’s Core Mission? We intend to transform how multinational corporations monetize their best technologies
Slide 13: Successful Track Record of Company Formation
13 2015 2018 2022 2024+ Innventure Company New Company #4, #5, . . . Technology Polypropylene Recycling Technology Liquids Packaging Technology Thermal Management Technology Technology #4, #5, . . . MNC 11 Current MNCs showing technologies to be commercialized with aggregate enterprise value over $7
Slide 14: Achieving Our Core Mission
Innventure’s business model was designed to mitigate five of the key risks historically inherent in high- growth venture creation Innventure – Achieving Our Core Mission 14 Operational Execution Funding Adoption Technology Macro/Market Level 1 2 3 4 5 Key Risks in Company Creation
Slide 15: The Closed Loop Model
15 Systematic mitigation of risks inherent in creating and growing high growth, disruptive companies Institutional Data Set Developed Technology Early Customer Adoption Access Advantage Institutional Data Set Deep MNC market knowledge related to the unmet market need, technology solution, industry v
Slide 16: Innventure's Economic Value Creation Playbook
Process for systematically scaling our businesses Identify Technology Solutions MNC has invested millions of dollars over several years to develop technology solutions as well as understands unmet strategic market need Deploy World- Class Team Innventure team led by executives with a track record of
Slide 17: The Innventure Strike Zone
Commercial-grade technology solutions that enable significant, additional quantifiable value opportunities Seeking to build businesses leveraging technology solutions that have been significantly de- risked by MNC partners with benefit of market data Leverage MNC data and built-in adoption to confir
Slide 18: What Differentiates Innventure's Model
Owner Operators X X ✔ ✔ Liquidity for Investors X X ✔ ✔ Ability to Redeploy Cash Flow X X ✔ ✔ Portfolio Expected Success Rate Low Medium Low High Operational Expertise Limited Limited Mature products and technology Early and growth stage, disruptive products and technology Cost Basis Low High / Leve
Slide 19: Investment highlights
19 Acquire or license a proven technology(1) from MNC that addresses an expected unmet need Built-in channel to market through MNC accelerates adoption of technology Founder stage owner-operators have potential to create substantial financial leverage Significant monetary and time investment by MNC
Slide 20: Benefits to Multinational Companies
20 Benefits to Multinational Companies MNCs invest hundreds of billions of dollars annually in Research & Development – much of that is not commercialized From 2021 to 2022. Metric as of June 18, 2014 Source: FDI Intelligence (https://www.fdiintelligence.com/content/feature/global-innovation-leaders
Slide 21: Later-stage risk profile versus venture capital
21 Technology Creates a new technology and takes all risk that it will ultimately work Innventure starts with a proven technology(1) developed by the MNC Funding Profile Funds riskiest portion of R&D spend which is the development and validation of the technology Benefits from all the capital and ti
Slide 22: Risk considerations and Innventure mitigation
22 Macro/Market Level Leveraging MNC proprietary market knowledge of unmet need, DownSelect assessment conducts deep diligence on the technology solution and the market factors that could lead to its success and early adoption by MNCs Technology Access to advanced MNC-funded technology solution with
Slide 23: Company development timelines
23 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Technology transfer Patents filed Secured feedstock & offtake agreements Tech Validated – FEU production line completed PCT becomes public at $1.2B valuation (NASDAQ: PCT) Ironton Plant produces first pellets Ownership: <2% Ownership: 29.7% Ownersh
Slide 24: Strategic Partnerships
Tom Cripe Head of Strategic Partnerships Strategic Partnerships
Slide 25: Perfecting Innventure's Business Model
Market Knowledge and Data Technical Depth and Resources Strong IP Moat Commercial Links and Credentials 25 Multinational Corporations Perfecting Innventure’s Business Model Building a stronger innovation model for disruptive technologies by marrying together the best of multinational corporations an
Slide 26: Multinational Corporation Decision Making Process
Multinational Corporation Decision Making Process 26 Why invent the technology? Why not commercialize the technology internally? Why partner with Innventure? No solution available to meet desire to increase use of recycled plastic Commercializing waste plastic technology is off-strategy Incumbents w
Slide 27: Robust Pipeline of Multinational Corporation Relationships
Robust Pipeline of Multinational Corporation Relationships 27 Active Multinational Pipeline Growth (1) 16 20 29 Dec 21 Dec 22 Dec 23 80+% Growth MNC pipeline as of December 2023. Active Multinational Pipeline includes: (1) Current MNC Prospects, (2) MNC’s Actively Sharing Opportunities, and (3) Ongo
Slide 28: DownSelect®
Colin Scott Head of DownSelect® DownSelect®
Slide 29: What is DownSelect®?
What is DownSelect®? Rigorous analysis to generate outsized risk-adjusted returns through disruptive company formation
Slide 30: Innventure's DownSelect® Evaluation Analysis
Innventure’s DownSelect® Evaluation Analysis 30 Historical Opportunity Pipeline 3 DownSelect® Case Studies 2 What Makes a Good Opportunity for DownSelect®? 1 DownSelect® Overview 4
Slide 31: Innventure's DownSelect® Phases
Innventure’s DownSelect® Phases Each phase in the DownSelect® analysis seeks to best assess revenue opportunity, initial and scaled unit economics, capital requirements and risk. The ultimate output is a potential business launch that has met or exceeded a rigorous set of checks and balances. 31 PHA
Slide 32: DownSelect® Quality Scoring
DownSelect® Quality Scoring Helps prioritize evaluation and development of opportunities by integrating information in an iterative loop across five key interconnected factors 32 2. Value Quantification of the immediate, new economic value created for customers, especially strategic value for MNC pa
Slide 33: Drivers of a Strong Innventure Opportunity
Drivers of a Strong Innventure Opportunity 33 Technology constantly changes business across a diverse set of use-cases. Innventure has extensive experience screening technologies for commercialization to meet expected unmet market needs. Key market drivers and markets in need of a technology solutio
Slide 34: Sustainable Solutions Drive Economic Value
10X reduction in shipping volume compared to empty preformed rigid bottles while eliminating waste within the e-commerce channel Sustainable Solutions Drive Economic Value Innventure has built companies that unlock long-term economic value where secular trends required sustainable technology solutio
Slide 35: DownSelect® Initial Phases
DownSelect® Initial Phases Data-intensive diligence and standardized evaluation steps make the initial phases of DownSelect® highly scalable. Collaboration with a growing network of MNCs provides initial DownSelect® phases with truly unique market knowledge. 35 PHASE 1 Opportunity Screen PHASE 2 Cri
Slide 36: DownSelect® Decision and Formation Phases
DownSelect® Decision and Formation Phases 36 Each phase in the DownSelect® analysis seeks to best assess revenue opportunity, initial and scaled unit economics, capital requirements and risk. The ultimate output is a potential business launch that has met or exceeded a rigorous set of checks and bal
Slide 37: DownSelect® – Risk Avoidance Discipline
Capital Timeline DownSelect® – Risk Avoidance Discipline 37 Rigorous evaluation of spectrum technology solution led to DownSelect® rejection PHASE 1 Opportunity Screen PHASE 2 Critical Factor Assessment PHASE 4 Strategy & Formation PHASE 3 Comprehensive Quantification Market REJECTION Start date to
Slide 38: The Innventure Strike Zone
The Innventure Strike Zone 38 Innventure’s data-centric approach reduces principal risk to scaling and execution (1) Such technology has been demonstrated as a proof of concept but has not yet been scaled or commercialized. Commercial-grade technology solutions that enable significant, additional qu
Slide 39: Innventure's Historical DownSelect® Pipeline
48 15 7 3 3 79 16 3 Phase 1 NewCo Opportunities Evaluated Since Inception Phase 2 Phase 3 Active MNC Partners Phase 4 Other 98% of opportunities don’t pass the DownSelect® rigorous analysis Innventure’s Historical DownSelect® Pipeline 39 DownSelect® arms Innventure with a scalable ability to evaluat
Slide 40: Break
Innventure Break
Slide 41: AeroFlexx | Private and Revolutionizing Liquid Packaging
AeroFlexx Investor Presentation | Private and Confidential 41 Revolutionizing Liquid Packaging
Slide 42: Transforming the Package Industry
AeroFlexx is a sustainable liquid package designed to leverage the best attributes of both rigid and flexible packaging to deliver a highly preferred consumer experience, unlocking economic value for the MNCs while offering significant sustainability benefits Value Proposition Transforming the Packa
Slide 43: Seasoned Management Team
Seasoned Management Team Andrew Meyer – Chief Executive Officer Andrew is the CEO of AeroFlexx and Serial CEO for Innventure. He brings with him extensive experience in entrepreneurial environments having spent the last 15 years within 4 different venture-backed technology start-ups that included va
Slide 44: Key Milestones
Key Milestones Launch in February 2018 by Innventure Announced Joint Venture with Dynapack Asia Achieved BRC Global Standard (BRCGS) 2018 2024 Achieved Interseroh “Made for Recycling” Pac Global Leadership Award Second converter line installed to give commercial capability to produce recyclable Paks
Slide 45: Substantial Addressable Market
Personal Care Household Products Pet Care Food Industrial AeroFlexx technology has an estimated $400 billion addressable market across several market categories: AeroFlexx Presentation | Innventure Analyst Day 45 Substantial Addressable Market
Slide 46: Proven Business Model
Proven Business Model Fillers owned by co-manufacturers Fillers owned by the brand AFX in-house fillers AFX partnered co-manufacturers Converters owned and operated by AeroFlexx selling filled Paks selling filled Paks selling flat Paks selling flat Paks AeroFlexx Presentation | Innventure Analyst Da
Slide 47: Growth Roadmap
Growth Roadmap AeroFlexx expects to expand its global footprint with equipment being deployed across 3 different regions Deployment locations based on management assumptions and are not guaranteed. AeroFlexx Presentation | Innventure Analyst Day 47 CURRENT OPERATIONS EXPANSION PLANS
Slide 48: Delivering Increased Sustainability
Delivering Increased Sustainability VIRGIN PLASTIC AVOIDANCE Significant source reduction by using up to 85% less plastic versus rigid bottle/cap/label alternatives CURBSIDE RECYCLABILITY Curbside recyclable where all plastic bottles are accepted* PACKAGE CIRCULARITY Package can incorporate up to 50
Slide 49: Substantiated by Compelling Data
Substantiated by Compelling Data Source: AcuPoll Precision Research Nov2016, internal use testing May-June ‘16, Company analysis of Amazon data pilot market launches AeroFlexx Presentation | Innventure Analyst Day 49 CONCEPT TESTING AeroFlexx concepts in both dish and body scored in top 5 percentile
Slide 50: Unlocking Significant Brand Value
Unlocking Significant Brand Value AeroFlexx Presentation | Innventure Analyst Day 50 REDUCES SOURCING COMPLEXITY AND TRANSPORTATION COST LOWERS WAREHOUSE AND INVENTORY COST REQUIREMENTS ISTA-6 AMAZON APPROVED OMNI-CHANNEL READY OFF THE FILLING LINE NEW SIZE AND SHAPE DEVELOPMENT EFFICIENCY TAMPER-PR
Slide 51: Accelsius: We Bring the Cool
Josh Claman Chief Executive Officer Accelsius We Bring the Cool
Slide 52: The Need for Liquid Cooling Continues to Accelerate
THE NEED FOR LIQUID COOLING CONTINUES TO ACCELERATE CPU wattages increasing exponentially GPU wattages high and growing higher AI adopting moving from fringe use case to a large portion or data halls GW Power Capacity Data Center Power Capacity (GW) 140 120 100 80 60 40 20 - DC Power Capacity (IT Lo
Slide 53: Hype and Concern – Both Tailwinds for Accelsius
HYPE AND CONCERN – BOTH TAILWINDS FOR ACCELSIUS
Slide 54: Transition to Liquid Cooling is Accelerating
TRANSITION TO LIQUID COOLING IS ACCELERATING Liquid Cooling expected to reach $7.8 billion by 2028 from $2.6 billion in 2022. Source: Data Center Knowledge The transition to liquid cooling continues to accelerate, driven by AI adoption. Source: https://www.marketsandmarkets.com/Market-Reports/data-c
Slide 55: Accelsius at a Glance
ACCELSIUS AT A GLANCE What is Accelsius? A two-phase, direct-to-chip liquid cooling technology designed for data centers. The NeuCoolTM system delivers best-in-class thermal performance, advanced mission-critical design, North American manufacturing & supply chain, and enterprise-grade lifecycle ser
Slide 56: Accelsius management team
Dino Foderaro, Chief Revenue Officer Dino is an operations executive with diver experience across HR, Finance, product management, sales, and people management and has a background leading highly technical, cross-functional teams in the development and deployment of targeted solutions to meet the ev
Slide 57: NeuCool System Flow
NEUCOOL SYSTEM FLOW Condenser Tank Pump Manifold Liquid HP Vaporator Manifold Vapor 2-Phase Flow Cycle
Slide 58: NeuCool System
Yer) NEUCOOL SYSTEM ww
Slide 59: NeuCool Metrics and Benefits
NEUCOOL METRICS AND BENEFITS TCO SAVINGS 59% ZERO Water Consumed 1,500W+ NEUCOOL Vaporators can cool the most powerful chips 50% ENERGY SAVINGS 80% REDUCED CO2 EMISSIONS 75% IT SPACE SAVINGS 1-3 Years Payback from savings 100 kW+ Per rack cooling capability 1.08 Targeted PUE <0.02 °C/W Vaporator Cas
Slide 60: Cooling approaches compared
IMMERSION COOLING Unfamiliar form factor High up-front costs Requires infrastructure changes Specialized training & services required No headroom Only able to cool 400 watts/chip SINGLE-PHASE IMMERSION TWO-PHASE IMMERSION Hundreds of gallons of coolant subject to unpredictable government regulations
Slide 61: Accelsius NeuCool: The Best Overall Thermal Performance
ACCELSIUS NEUCOOL: THE BEST OVERALL THERMAL PERFORMANCE Greatest Lifetime Value Air (1U) 1P Immersion 2P Immersion 1P Direct-to-Chip 2P Direct-to-Chip / NeuCool Max TDP Cooled with 30°C Facility Water and Below Thermal Resistances 165 watts 190 watts 415 watts 700 watts (@2.2 LPM) 1000 watts (@.5 LP
Slide 62: Covering All Required Dimensions
COVERING ALL REQUIRED DIMENSIONS DENSIFICATION More compute power and revenue per area/volume. Effective cooling of hotter next generation chips without air heat sinks. Enable more servers in each rack. 2. EFFICIENCY 3. COMPATABILITY 4. SUSTAINABILITY Fewer components, better reliability. Dramatical
Slide 63: Making Quick Traction in the Market
MAKING QUICK TRACTION IN THE MARKET Signed Integrators and Service Providers Servers Tested and Characterized Expanding VAR Agreements Strategic Relationships
Slide 64: Financial Model & Reporting
Dave Yablunosky Chief Financial Officer Financial Model & Reporting
Slide 65: How Will Innventure Report?
How Will Innventure Report? Committed to investor transparency as Innventure Companies scale 65 Key Performance Indicator Quantitative disclosure Qualitative detail Revenue(1) Consolidated revenue Backlog, orders, etc. EBITDA(2) Consolidated expense detail Margin progression Capital expenditure Cons
Slide 66: Key Tenets to Innventure's Expected Financial Profile
Key Tenets to Innventure’s Expected Financial Profile 66 Disciplined Capital Expenditures Visible Path to Profitability Rapid Revenue Growth 1 2 3 A model of launching high-growth ventures with strong profitability metrics and substantial addressable markets
Slide 67: Innventure's Capital Allocation Strategy
Compounding cash flows expand Innventure's value creation options • Paced investment inline with revenue visibility • Expense management to minimize early-stage operating losses Disciplined Scale Self Fund NewCo • Initial investment range of $25 to $50 million allows for multiple potential launches
Slide 68: Value Creation
Lucas Harper Chief Investment Officer Value Creation
Slide 69: Illustrative Innventure Value Creation Model
69 Low-cost base + de-risked start-up investment + rapid time to market = potential high returns on invested capital Illustrative Innventure Value Creation Model Years 3-5 Years 0-2 Years 5+ Investment Low IP acquisition costs ~$10 - $20 million of capital expenditures P&L Minimize operating loss Ca
Slide 70: Evolution of Ownership Structure
70 Innventure intends create additional value for shareholders by maintaining majority control of future NewCos Evolution of Ownership Structure Year Founded 2015 2018 2022 [~2024] [~2025] [~2026]+ Note: PureCycle Technologies became public in 2021 (Nasdaq listed “PCT”) and, as of December 31, 2023,
Slide 71: Valuation
Roland Austrup Capital Markets Valuation
Slide 72: Pro Forma Valuation
Pro Forma Valuation Pro Forma Ownership Sources & Uses 72 Sources ($ mm) SPAC Cash in Trust(2) $101 Stock Consideration to Existing Shareholders(3) (5) 382 Total Sources $483 Uses ($ mm) Stock Consideration to Existing Shareholders(3)(5) $382 Cash to Balance Sheet 86 Estimated Transaction Costs(7) 1
Slide 73: Public Market View of Holding Company Platforms
73 Public Market View of Holding Company Platforms Utilizes the following indices as proxies for $ROP segments – Application Software: S&P500 Application Software, Network Software: S&P500 Systems Software, Technology Enabled Products: FactSet Developed / Health Technology Market Index. Utilizes the
Slide 74: Multi-Modal Value Creation
Multi-Modal Value Creation Innventure’s systematic creation of high-growth businesses aims to create a laddered portfolio of disruptive companies 74 TIME VALUE Conceptual Perpetual High Growth Potential Innventure Portfolio Value Creation NewCo. N NewCo. N+1 NewCo. N+2 NewCo. 1
Slide 75: Q&A
Innventure Q&A
Slide 76: Innventure: The Science of Company Creation