Trendlines Group Ltd. · SGX:42T
Trendlines — The Trendlines Group — Investor Presentation (August 2017)
33 slides from Trendlines's investor presentation, August 2017
Slide 1: The Trendlines Group investor presentation
The Trendlines Group investor presentation Steve Rhodes Todd Dollinger Gabi Heller Chairman and CEO Chairman and CEO Chief Financial Officer August 2017 SGX:42T OTCQX: TRNLY
Slide 2: Legal Disclaimer
Legal Disclaimer IMPORTANT NOTICE This presentation is for informational purposes only and does not constitute or form any part of any offer for sale or subscription of, or solicitation of, any offer to buy or subscribe for any securities of The Trendlines Group Ltd. (“Company”) or any of its portfo
Slide 3: Trendlines: Building companies, commercializing innovation
Trendlines: Building companies, commercializing innovation Life science incubators 3
Slide 4: Trendlines: Building companies, commercializing innovation
Trendlines: Building companies, commercializing innovation In-house innovation center of The Trendlines Group Invents and develops technologies to address unmet market needs 4
Slide 5: A Breakthrough in Heart Pump Technology
A Breakthrough in Heart Pump Technology • People with end-stage heart failure usually die within six months. • Mechanical heart pumps keep them alive longer. The problem with mechanical heart pumps: The driveline that exits the body. 5
Slide 6: A Breakthrough in Heart Pump Technology
A Breakthrough in Heart Pump Technology Making It Wireless • No cable • Recharge implanted battery – wirelessly • Freedom from external apparatus for 6-10 hours Achievements • Fully operational system • ISO 13485 • Key opinion leaders on board • 8 patents granted • Successful animal trials • High vi
Slide 7: A breakthrough in heart pump technology
A breakthrough in heart pump technology LVADs are an under-penetrated market • Current LVAD market ~US$1 billion • Only ~10% market penetration attributed primarily to driveline issues 7,000 implants Leviticus Cardio’s wireless solution is the groundbreaking 69,000 existing candidates breakthrough f
Slide 8: Value creation through portfolio expansion
Value creation through portfolio expansion (US$ millions) Portfolio value* with exit proceeds 110 Portfolio Value Cumulative Exit Proceeds 100 90 80 70 60 50 40 31.12.12 31.12.13 31.12.14 31.12.15 31.12.16 30.6.17 Including the fair value of investments in companies accounted for under the Equity me
Slide 9: Trendlines partners with strategic industry leaders
Trendlines partners with strategic industry leaders ~US$22 million • Invested ~US$5 million in Trendlines’ US$10 million in Bayer Trendlines Ag IPO committed in the Innovation Fund • Invested US$2.8 million in ApiFix past year by • Establishing mutual deal flow in • Invested €1 million in Gordian Su
Slide 10: Decades of company-building experience
Decades of company-building experience Nitza Kardish, Ph.D Yosi Hazan Todd Dollinger VP The Trendlines Group, CEO Trendlines Labs Eric Loh Chairman & CEO CEO Trendlines Incubators Israel Former GM, Biosense Webster CEO Trendlines Medical Former CEO, Clal Life Sciences (J&J company) Singapore Former
Slide 11: The Trendlines model
The Trendlines model
Slide 12: Unique foundation/unique model
Unique foundation/unique model • Trendlines model • Disciplined investment strategy • Government Innovation Authority support • Intensive, hands-on involvement in companies • Israeli start-up ecosystem • Early-stage, entrepreneur-focused investment environment • Israel spending on civilian R&D highe
Slide 13: The Trendlines' model: capital leverage
The Trendlines’ model: capital leverage* Trendlines’ typical investment ~US$1,420,000 per company Trendlines Government Trendlines in-kind capital grant investment at cost ~US$120,000 ~US$650,000 ~US$650,000 over two-year period *Similar leverage in Singapore 13
Slide 14: Trendlines' model: creating a foundation with intensive support
Trendlines’ model: creating a foundation with intensive support Financial consulting Business development Potential customers, partners, investors Raising capital Market research Overheads Bookkeeping, accounting, Marketing communications legal, operations Technology consulting Facilities & infrastr
Slide 15: Trendlines' model: proven, focused company-building timeline
Trendlines’ model: proven, focused company-building timeline Ideation Due Year 1 Year 2 Year 3+ diligence Proof of concept R&D to prototype Path to exit Physicians Market assessment Regulatory plan Follow-on funding Governance Engineers Business case IP strengthening Preclinical / clinical trials Fo
Slide 16: Trendlines' model: strategic partnerships
U.S. Japanese Medical Device Medical Device Multinational Multinational Trendlines’ model: strategic Successfully marketing partnerships • product designed and • Agreement with Trendlines developed by Trendlines Labs Labs to collaborate on clinical opportunities • Additional projects in development
Slide 17: Expanding portfolio value
Expanding portfolio value
Slide 18: Primary factors driving expansion of portfolio value
Primary factors driving expansion of portfolio value 1 Increasing the number of companies in the portfolio 2 Building portfolio companies’ value 3 Building companies for exit 4 Trendlines Labs: creates new IP and new portfolio companies, generates recurring revenues 18
Slide 19: Achieving milestones to create value
Achieving milestones to create value As at 30 June 2017; 28 written-off portfolio companies and 1 company established before September 2007 not listed. One of our 10 most valuable portfolio companies as at 30 June 2017. 19
Slide 20: 10 most valuable portfolio companies
10 most valuable portfolio companies Fair market value of 10 most valuable portfolio companies ~US$60.4 million, 68% of total portfolio value of ~US$88.4 million.* Company name Initial investment % owned (fully diluted) ApiFix Ltd. 2011 25.25 Arcuro Medical Ltd. 2013 37.36 BioFishency Ltd. 2013 49.7
Slide 21: Exit returns: return on investment and IRR
Exit returns: return on investment and IRR Estimated Exit Company/Description Acquirer IRR (%) Return(1) 2017 BioSight Arkin Bio Ventures LP 216.7 X 71 2016 E.T.View Medical Ambu A/S 1.2 X 5 Most Valuable Portfolio 2014 Undisclosed(3) 79.1 X(2) 80 Company (MVPC)(3) 2014 Inspiro Medical OPKO Health 8
Slide 22: Carrying value on eve of exit vs. exit value
Carrying value on eve of exit vs. exit value All exits through 30 June 2017 (US$ thousands) 70 60 50 40 30 20 10 0 Pre-exit carrying value Exit value (1) (1) Includes PV of estimated royalties for Most Valuable Portfolio Company 22
Slide 23: Trendlines Labs
Trendlines Labs Selected achievements 2016 Selected Trendlines Labs portfolio • Income from Trendlines Labs rises to Field Invention Dev. Status US$1.1 million, compared to US$0.4 Reduced infection-risk Urology Prototype million in FY2015 Foley catheter Disposable surgical • 2 development programs s
Slide 24: Financial highlights
Financial highlights
Slide 25: Key components of value (US$millions)
Key components of value (US$millions) (1) Israeli government loans are non-recourse loans which only come due upon exit events (2) Deferred taxes are related to unrealized portfolio company valuation profits and are offset and paid only upon realization of cash received upon exits 25
Slide 26: Traded peer group & industry comparables
Traded peer group & industry comparables Price to portfolio (FMV*) Allied Minds (LSE:ALM) 1.20 Touchstone Innovations (AIM:IVO) 1.30 IP Group (LSE:IPO) 1.50 PureTech Health (LSE:PRTC) 1.09 Average Price to Portfolio 1.27 Trendlines Price to Portfolio 0.62 *Based on market cap 7 August 2017, divided
Slide 27: Stock overview
Stock overview Trendlines SGX share price movement - 12 months (S$) As at SGX: 42T OTCQX: TRNLY 7 August S$ US$* 2017 Last price S$ 0.15 US$ 5. 15 IPO price S$ 0.33 -- 52-wk high S$ 0.25 US$ 6.40 52-wk low S$ 0.15 US$ 4.71 Market cap S$74 million US$54 million Shares 508.8 million -- outstanding Fre
Slide 28: Selected portfolio companies
Selected portfolio companies
Slide 29: Minimally invasive scoliosis correction system
Minimally invasive scoliosis correction system Solution Minimally invasive scoliosis correction system incorporates a miniature ratchet mechanism for gentle, incremental correction over time Ideation Identified serial entrepreneur-spine expert Investment & Intense Support • Raised US$7 million in th
Slide 30: Water treatment system for aquaculture
Water treatment system for aquaculture Solution Cost-effective, all-in-one water treatment system for reduced water use and improved yields in land-based aquaculture. Operates with all existing aquaculture systems: extensive, intensive, and recirculated Ideation Trendlines identified inventor Invest
Slide 31: Natural, nontoxic bio-insecticide
Natural, nontoxic bio-insecticide Solution Ideation Achievements Natural, nontoxic insect control Trendlines identified inventor • U.S. patent system for greenhouse crops, Investment & Intense Support • Successful field trials in variety of ornamentals, and cannabis • Active guidance in marketing, c
Slide 32: The Trendlines Group value-building strategy
The Trendlines Group value-building strategy 1 Increase number of portfolio companies More than 30 companies to be added to portfolio over 3 years 2 Build value of portfolio companies • Intense support • Participate in follow-on rounds 3 Expand into new markets • Trendlines Medical Singapore establi
Slide 33: SGX: 42T OTCQX: TRNLY www.trendlines.com
Steve Rhodes, Chairman & CEO SGX: 42T steve@trendlines.com OTCQX: TRNLY Todd Dollinger, Chairman & CEO todd@trendlines.com +972.72.260.7000 Gabi Heller, Chief Financial Officer www.trendlines.com gabi@trendlines.com Judith Kleinman, Director Investor Relations judith@trendlines.com 7 August 2017
The Trendlines Group — Investor Presentation (August 2017) on 6ix