Trendlines Group Ltd. · SGX:42T
Trendlines — The Trendlines Group — Investor Presentation (March 2020)
32 slides from Trendlines's investor presentation, March 2020
Slide 1: The Trendlines Group Investor presentation
The Trendlines Group Investor presentation Steve Rhodes Todd Dollinger Haim Brosh Chairman and CEO Chairman and CEO Chief Financial Officer March 2020 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, building value
Trendlines: building companies, building value Life science incubators 3
Slide 4: Trendlines: building companies, building value
Trendlines: building companies, building value In-house innovation center of The Trendlines Group Inventing and developing technologies to address unmet market needs 4
Slide 5: Portfolio value expansion
Portfolio value expansion US$ millions Portfolio value with exit proceeds 140 120 Portfolio value (excluding consolidated subsidiaries) 100 Cumulative exit proceeds 80 60 40 20 0 31.12.08 31.12.09 31.12.10 31.12.11 31.12.12 31.12.13 31.12.14 31.12.15 31.12.16 31.12.17 31.12.18 31.12.19 Note: Portfol
Slide 6: Exits: estimated returns and IRR
Exits: estimated returns and IRR Estimated Exit Company/Description Acquirer IRR (%) Return* 2017 MitrAssist Wai Tech (Hong Kong) Holding Ltd. 2.1 X 12 2017 BioSight Arkin Bio Ventures LP 216.7 X 71 2016 E.T.View Medical Ambu A/S 1.2 X 5 2014 Stimatix GI B. Braun SAS 65.7 X** 76 2014 Inspiro Medical
Slide 7: Carrying value on eve of exit vs. exit value
Carrying value on eve of exit vs. exit value US$ millions Total exits through 31 December 2019 50 45 40 35 30 25 Cash invested 20 Total investment (cash + in-kind) 15 Pre-exit carrying value 10 Exit value* 5 0 *Includes present value of Stimatix GI estimated royalties. 7
Slide 8: The Trendlines model
The Trendlines model
Slide 9: The Trendlines model: capital leverage
The Trendlines model: capital leverage* Trendlines’ typical investment ~US$1,570,000 per company In-kind Trendlines Government investment at capital grant cost ~US$130,000 ~US$720,000 ~US$720,000 over two years *Model shown is typical capital leverage model for companies in Israel; similar leverage
Slide 10: Trendlines' model: proven, focused company-building timeline
Trendlines’ model: proven, focused company-building timeline Need/ Due Year 1 Year 2 Year 3+ Ideation 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 tri
Slide 11: Trendlines model: intensive support
Trendlines model: intensive support Business development Financial structuring Customer, partner, investor relationships Raising capital Market research Entrepreneurial ecosystem Marketing communications G&A support Bookkeeping, accounting, legal, operations Facilities & infrastructure Companies loc
Slide 12: Trendlines model: strategic partnerships
Trendlines model: Government of Singapore strategic partnerships Government of Israel 12
Slide 13: Trendlines Labs
Trendlines Labs 10 portfolio companies in 8 medical sectors Partnerships Obgyn Nasogastric GI Japan Singapore Cardiology Respiratory health Neurology Europe U.S. U.S. Cardiology / renal health Urology China China 13
Slide 14: Trendlines Funds
Trendlines Funds Trendlines Agrifood Fund Pte. Ltd. Bayer Trendlines Ag Innovation Fund L.P. • Singapore-based, agrifood tech-focused fund • Agrifood tech-focused fund • Received capital commitment of US$23 • US$10 million commitment from Bayer Crop Science million out of the target Fund size of US$
Slide 15: Management team
Management team Todd Dollinger Barak Singer Nir Goldenberg Chairman & CEO CEO Trendlines Incubators CEO Trendlines Labs Israel Nitza Kardish, Ph.D. CEO Trendlines Agrifood Fund Steve Rhodes Haim Brosh Eric Loh Chairman & CEO CFO & CEO Trendlines Medical Joint Co. Sec’y. Singapore 15
Slide 16: Expanding portfolio value
Expanding portfolio value
Slide 17: Companies achieving milestones to create value
Companies achieving milestones to create value *57 portfolio companies as at 31 December 2019; 34 written-off portfolio companies not included. One of our 10 most valuable portfolio companies as at 31 December 2019. 17
Slide 18: 10 most valuable portfolio companies
10 most valuable portfolio companies Fair market value of 10 most valuable portfolio companies ~US$67.3 million, 66% of total portfolio value of ~US$102.8 million.* Initial Company name % owned (fully diluted) investment AgroScout Ltd. 2017 47.26 ApiFix Ltd. 2011 19.17 BioFishency Ltd. 2013 31.21 Fi
Slide 19: Minimally Invasive Scoliosis Correction System
Minimally Invasive Scoliosis Correction System Minimally invasive scoliosis correction system incorporates a miniature ratchet mechanism for gentle, incremental correction over time Achievements • Targeted sales in Canada, Europe, Israel, Asia • Completed >300 successful surgical procedures • First
Slide 20: A Game-Changer in Heart Pump Technology
A Game-Changer in Heart Pump Technology Fully Implanted Ventricular Assist Device (FIVAD), powered wirelessly using both internal and external components, allows patients to walk around without any physical impediments for up to 8 hours a day Achievements • FIH of FiVAD with successful follow-up • F
Slide 21: Low-profile solutions for colostomy management
Low-profile solutions for colostomy management Low-profile innovative solutions for colostomy management, created to improve the quality of life for people with stomas Achievements • Commercial launch of product and addition of Be 1® product on B. Braun website • B. Braun has established high-volume
Slide 22: Accurate fruit tree yield at "green" stage
Accurate fruit tree yield at “green” stage Developing a multispectral machine vision system for more accurate estimates of fruit tree yields Achievements • 2018: Completed successful field trials • Marketing validation, field testing • 2018: Finalist, Radicle Automation Challenge Final Four • IP: PC
Slide 23: Miniature stem water potential (SWP) sensor
Miniature stem water potential (SWP) sensor Advanced decision support system for optimal irrigation through a miniature SWP sensor embedded in the trunks of trees, vines, and plants Achievements • Installed ~500 sensors in 3 experimental/10 commercial farms (California, Spain, Israel) • Established
Slide 24: Delivering protein with edible insects
Delivering protein with edible insects Developing optimized methods and technology to grow large quantities of grasshoppers quickly in captivity Achievements • Launched product Q1 2018 • Increased number of life cycles from 1 to 10 in one year • Multi-award winner (Israel Ministry of Agriculture & R
Slide 25: Financial highlights
Financial highlights
Slide 26: Key value components
Key value components Change in portfolio value during FY2019 Balance sheet as at 31 December 2019 (US$ millions) 19.4 (3.6) (2.7) 21.1 (14.5) (15.5) (1.6) 97.2 102.8 99.8 Net portfolio Investments and Fair value Net portfolio Cash, short-term Fair value of Deferred Deferred tax** Payables & Total eq
Slide 27: Stock overview
Stock overview As at SGX: 42T OTCQX: TRNLY Trendlines’ SGX share price movement: Feb 2019 - Feb 2020 (S$) 26 Feb 2020 S$ US$ Share price S$ 0.117 US$ 3.92 IPO price S$ 0.33 – 52-wk high S$ 0.138 US$ 4.49 52-wk low S$ 0.076 US$ 2.70 Market cap S$ 92.57 million US$ 61. 95 million Shares Each OTCQX ADR
Slide 28: Stock performance: Net Asset Value (NAV)
Stock performance: Net Asset Value (NAV) SGD USD NAV per share/ADR* S$ 0.18 US$ 6.3 Price per share/ADR** S$ 0.117 US$ 3.92 % discount to NAV 34% 38% *As at 31 December 2019 **Market close as at 26 Feb 2020 28
Slide 29: Stock performance: Trendlines vs. Catalist Index trends
Stock performance: Trendlines vs. Catalist Index trends 12-month Trendlines vs Catalist Index Trend 390 12 340 10 290 FTSE ST Catalist Index 240 8 Trendlines’ price per share 190 6 140 4 90 2 40 -10 1.2.19 1.3.19 1.4.19 2.5.19 3.6.19 1.7.19 1.8.19 2.9.19 1.10.19 1.11.19 2.12.19 2.1.20 3.2.20 0 FTSE
Slide 30: Traded peer group & industry comparables
Traded peer group & industry comparables Price to portfolio (FMV1) IP Group (LSE:IPO) 0.70 Malin Corporation (ISE:MLC) 0.50 Mercia Technologies (AIM:MERC) 1.19 Average price to portfolio 0. 80 Trendlines price to portfolio 0.64 1. Based on market capitalization as at 26 Feb 2020, divided by last ava
Slide 31: Factors driving value expansion
Factors driving value expansion 1 Increasing portfolio companies’ value through intense support 2 Building companies for exit 3 Trendlines Labs: creating new IP and new portfolio companies 4 Agrifood Fund and Agrifood Innovation Centre (AFIC) activities 31
Slide 32: SGX: 42T OTCQX: TRNLY www.trendlines.com
SGX: 42T Steve Rhodes, Chairman & CEO OTCQX: TRNLY steve@trendlines.com Todd Dollinger, Chairman & CEO +972.72.260.7000 todd@trendlines.com www.trendlines.com Haim Brosh, Chief Financial Officer haim@trendlines.com March 2020
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