Slide 1: Differentiated PLC Investment Model Designed for Deeptech
Differentiated PLC Investment Model Designed for Deeptech Dr. Ilian Iliev, CEO Interim Results for the six months ended 30 June 2023 3 October 2023
Slide 2: Disclaimer
Disclaimer This presentation (and any information contained in any oral presentation accompanying it) (Presentation) has been prepared by NetScientific Plc (Company). This Presentation has not been approved by an authorised person in accordance with Section 21 of the Financial Services and Markets A
Slide 3: Agenda
Agenda Presentation • Introduction to NetScientific (NSCI) • Background and Strategy • H1 2023 Progress and Results • Portfolio Highlights • Outlook • Summary and Q&A 3
Slide 4: About NetScientific
About NetScientific NetScientific plc (AIM: NSCI) is a deep tech and life sciences VC investment group with an international portfolio of innovative companies. • Identifying, investing in, and building high growth companies in the UK and internationally • Growing from 8 to 24 companies in 3 years •
Slide 5: Effective Board Leadership & Corporate Governance
Effective Board Leadership & Corporate Governance Dr. Ilian Iliev, CEO Ed Hooper, Executive Director and Group General Counsel • Founder of EMV Capital – acquired by NetScientific PLC in 2020 • Former Partner of a City headquartered international law firm • Significant shareholder of NetScientific (
Slide 6: Advantages of Model
Advantages of Model • Capital Efficient Investment Strategy: supporting portfolio companies with selective use of balance sheet • Proactive Portfolio Management: opens up value opportunities, investment on advantageous conditions • Value Creation Services: selective support to portfolio companies –
Slide 7: Group Portfolio – Diversified Risk and Increased Investment Return Opportunities
Group Portfolio – Diversified Risk and Increased Investment Return Opportunities 24 companies in Life Sciences, Deeptech and Sustainability segments NASDAQ-listed *Portfolio comprises of equity investments and exposure to companies through carried interest, realisable on exit BALANCED PORTFOLIO FOR
Slide 8: Financial and Operational Highlights H1 2023
Financial and Operational Highlights H1 2023 • Successfully executing our 'evergreen' sustainable strategy: • Covering core operating costs through a combination of corporate finance fees, value creation fees, and profits from partial exits of portfolio holdings. • Total income increased to £1.15m (
Slide 9: Financial and Operational Highlights H1 2023
Financial and Operational Highlights H1 2023 • Group losses decreased slightly to £1.6m (H1 2022: £1.7m) • Losses from operations at the 'core' decreased by c.43% to £394,000 (H1 2022: £695,000). • Attributed to our capital-efficient model, while EMV Capital has remained profitable. • Losses at both
Slide 10: Financial and Operational Highlights H1 2023
Financial and Operational Highlights H1 2023 • Fair value decreased by 15% to £35.5m (2022: £41.8m) • These decreases are mainly due to the decline of the PDS Biotechnology share price to $5.03 (at 30 June 2023) from $13.20 (at 31 December 2022). • Declines offset by a £3.1m (11%) improvement in fai
Slide 11: Financial and Operational Highlights H1 2023
Financial and Operational Highlights H1 2023 • Capital Under Advisory increased to £26.1m (2022: £23.5m) • Providing significant and growing potential future profit for the Group from future realisations through performance fee arrangements. • £5.6m of third-party syndicated investments into portfol
Slide 12: Highlights and KPIs – H1 2023
Highlights and KPIs – H1 2023 Unaudited Directors’ Estimated Value (Fair Value) 41.80 Fair Value now stands at £35.5m GBP (million) 35.50 (2022: £41.8m; 2021: 31.0m; 2020: 21.2m) 31.00 21.20 Approximately 67% increase from 2020 and 200% increase from 2019 11.80 * Unaudited Directors’ Estimated Value
Slide 13: Highlights and KPIs – H1 2023
Highlights and KPIs – H1 2023 Consolidated Group Net Assets 25.2 GBP (million) 18.5 18.1 Consolidated Group Net Assets at £18.1m (2022: £25.2; 2021: £18.5m; 2020: £6.9m) 6.9 31-Dec-20 31-Dec-21 31-Dec-22 30-Jun-23 Net Asset Value Per Share £1.07 GBP (million) £0.88 £0.77 Net Asset Value Per Share at
Slide 14: Portfolio Fair Value Composition H1 2023
Portfolio Fair Value Composition H1 2023 Portfolio Diversification H1 2023 Portfolio Fair Value GBP 35.5 million FOx, 0.4 Other, 2.9 PDS Biotechnology, 5.3 SageTech, 0.9 EpiBone, 1.1 Vortex, 2.8 ProAxsis, 3.5 Glycotest, 11.0 EMV Capital, 3.5 Q-Bot, 4.1 14
Slide 15: Active Portfolio Management and Value Creation
Active Portfolio Management and Value Creation Concentrating on a “cohort” of companies, taking deeper stakes, with a focus on value creation and investment realisations Selective new investments that align with our model, offer good value, and can benefit from value creation services CONTINUED SUPP
Slide 16: Selected Portfolio Company Highlights
Selected Portfolio Company Highlights Glycotest, Inc., US (liver cancer diagnostics, PDS Biotechnology Corp, NASDAQ: PDSB ProAxsis Ltd, UK (medtech, respiratory 62.5% direct, 3% CUA) (Immuno-oncology, c.4.3% stake) diagnostics, 100% direct) • In August 2023, completed subject enrolment and sample •
Slide 17: Selected Portfolio Company Highlights
Selected Portfolio Company Highlights Vortex, US-UK (liquid biopsy, oncology, 25% Q-Bot, UK (robotics as a service, home retrofit DName-iT, Belgium (lab technology, direct, 13.9% CUA) insulation, 18.6% direct, 33.9% CUA) 36.9% direct stake, 14.8% CUA) • £3.2m EMV Capital-led EIS investment round in
Slide 18: Selected Portfolio Company Highlights
Selected Portfolio Company Highlights Sofant Technologies, UK (semiconductors Ventive Limited, UK (heat pumps and passive air Deeptech Recycling Limited, UK (recycling, 30% direct satellite comms 1.7% direct stake, 30.5% CUA) ventilation, 18.4% direct stake, 35.3% CUA) stake) • Edinburgh University
Slide 19: Outlook: NSCI Strategic Objectives FY2023+
Outlook: NSCI Strategic Objectives FY2023+ Progress Sustainable Business Model • The generation of more fees from EMV Capital • Selective divestments • External funding for subsidiaries • Expand funds practice Increase the NAV and Fair Value • Progress portfolio companies through value creation stag
Slide 20: Summary - Q&A
Summary - Q&A Advancing a Robust and Sustainable Business Model • Maturing portfolio with added potential, drive for exits/liquidity events • Positioned for further revenue and balance sheet growth in 2024 • Management commitment and focus, well placed and flexible • Align underlying asset value wit
Slide 21: Portfolio Summary
Portfolio Summary Group Fair Value (m) CUA (m) Portfolio Company Country Sector Stage CUA (%) Stake (%) Jun 2023 Dec 2022 Jun 2023 Dec 2022 Venture EMV Capital UK Sales 100% - £3.5 £3.5 - - capital Liver cancer Glycotest US Late clinical 62.5% 3.0% £11.0 £11.0 £0.3 - diagnostics PDS Biotechnology -
Slide 22: Portfolio Summary
Portfolio Summary Group Fair Value (m) CUA (m) Portfolio Company Country Sector Stage CUA (%) Stake (%) Jun 2023 Dec 2022 Jun 2023 Dec 2022 SageTech Medical Waste UK Sales 5.4% 25.9% £0.9 £0.9 £3.9 £3.8 Equipment anaesthetic Semicondu ctors Sofant Technologies UK Early sales 1.7% 30.5% £0.5 £0.4 £5.
Slide 23: Portfolio Summary
Portfolio Summary Group Fair Value (m) CUA (m) Portfolio Company Country Sector Stage CUA (%) Stake (%) Jun 2023 Dec 2022 Jun 2023 Dec 2022 Heat pumps Ventive UK and passive Sales 18.4% 35.3% £0.1 £0.1 £0.1 £0.1 ventilation DeepTech Recycling UK Recycling Pre sales 30.0% - - - - £0.5 Limited Cancer