Trendlines Group Ltd. · SGX:42T
Trendlines — The Trendlines Group — Investor Presentation (November 2016)
26 slides from Trendlines's investor presentation, November 2016
Slide 1: Creating & Developing Companies To Improve the Human Condition
Creating & Developing Companies To Improve the Human Condition Todd Dollinger and Steve Rhodes Chairmen and CEOs November 2016 1
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: An Innovation Commercialization Company
Trendlines: An Innovation Commercialization Company The Trendlines Group invents, discovers, invests in, and incubates innovation-based medical and agricultural technologies • Trendlines focuses on two global high-growth sectors: Medtech and Agtech • Trendlines has developed a unique and proven inno
Slide 4: Israel: A Wellspring of Technological Innovation
Israel: A Wellspring of Technological Innovation Early-stage, entrepreneur-focused investment environment The Start-Up Nation: Israel spends more per capita on civilian R&D than any other country Key resource: Entrepreneurial spirit: √ Proven track record: Intellectual capabilities “Get it done” att
Slide 5: Focus on Medical Device & Agtech Sectors
Trendlines: Focus on Medical Device & Agtech Sectors Demand Drivers Medical Devices • Aging population • Increasing incidence of chronic and lifestyle diseases • Catch-up in health care spending by large emerging markets Agtech • Increase productivity in agriculture & aquaculture to feed growing pop
Slide 6: Building Companies, Commercializing Innovation
Trendlines: Building Companies, Commercializing Innovation Life Science Incubators Invest in companies to improve the human condition In-House Innovation Center Invents and develops technologies to address unmet market needs 6
Slide 7: From Seed to Success at High Speed
Trendlines: From Seed to Success at High Speed Year 3+ Path to Exit Year Governance 2 Follow-on funding Business development Ideation Due Diligence Year Follow-On Funding Commercialization 1 Preclinical / clinical trials Investment banking Proof of Concept Regulatory submission R&D to prototype Mark
Slide 8: Capital Leverage
Trendlines: Capital Leverage Risk Mitigation Israeli Government Grants • No equity Israeli government typical new company grant: ~US$600,000 • No rights to intellectual property • Grants directly to portfolio companies • Sales royalty = grant plus interest Trendlines’ typical cash investment: • Addi
Slide 9: Value Creation
Trendlines: Value Creation Portfolio companies are like tightly wound springs: Value-building events release “energy” for jumps in value. US$000 Portfolio Opportunity 100,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 - 31.12.12 31.12.13 31.12.14 31.12.15 *30.9.16 Portfolio Value
Slide 10: Monetization
Trendlines: Monetization M&A Transactions Year Company Acquirer 2011 PolyTouch Covidien/Medtronic 2013 Innolap Surgical Teleflex 2013 FlowSense Baxter International 2014 Inspiro OPKO 2014 Most Valuable Portfolio Company Undisclosed 2016 ETView Medical Ambu Public Listings Year Company Exchange 2010
Slide 11: Trendlines' Core Strengths: Team, Network & Reputation
Trendlines’ Core Strengths: Team, Network & Reputation Strong Management Team and Track Record • We understand global markets and bridge cultures to build companies • A track record in building companies and executing exit strategies • Steve Rhodes and Todd Dollinger delivered irrevocable instructio
Slide 12: Decades of Company-Building Experience
Trendlines: Decades of Company-Building Experience Nitza Kardish, Ph.D. Yosi Hazan Todd Dollinger VP The Trendlines Group CEO Trendlines Labs CEO Trendlines Incubators Israel Chairman & CEO The Trendlines Group Former CEO, Former GM, Clal Life Sciences Biosense Webster (J&J company) Steve Rhodes Cha
Slide 13: Partnering with Leaders
Trendlines: Partnering with Leaders B. Braun Melsungen AG B. Braun • Founded 1839 Invested US$5 million in Trendlines’ IPO • Privately held • Establishing mutual deal flow • Global sales: €5.43 billion • Identifying potential new investments • Establishing accelerators and incubators • 54,000 employ
Slide 14: Building Value Over Time
Trendlines: Building Value Over Time One of our 10 most valuable portfolio As at 30 September 2016; 25 written-off portfolio companies and 2 companies established companies as at 30 September 2016. before September 2007 not listed. IPO indicates reverse mergers into public companies. 14
Slide 15: Portfolio Value
Trendlines: Portfolio Value Fair market value of 10 most valuable portfolio companies ~US$59.5 million, 71.2% of total portfolio value of ~US$83.6 million as at 30 September 2016. % Owned Company Name Initial Investment (Fully Diluted) ApiFix Ltd. 2011 24.40 Arcuro Medical Ltd. 2013 35.05 EdenShield
Slide 16: Trendlines Labs: The Hidden Value
Trendlines Labs: The Hidden Value Strategic Partnering Process Benefits All Selected Trendlines Labs’ Portfolio Field Invention Dev. Status Reduced infection-risk Foley Urology Prototype Partners catheter identify Gloves to improve hand Infection Control Prototype unmet needs hygiene compliance Disp
Slide 17: Financial Highlights (US$ 000)
Trendlines: Financial Highlights (US$ 000) 2013 2014 2015 30.9.16 Audited Audited Audited Unaudited Total Portfolio Fair Value* 74,639 77,494 85,776 83,566 Total Current Assets 5,764 4,392 24,000 20,411 2013 2014 2015 30.9.16 YTD 30.9.15 YTD Audited Audited Audited Unaudited Unaudited Gain (loss) fr
Slide 18: Traded Peer Group & Industry Comparables
Trendlines: Traded Peer Group & Industry Comparables Price to Portfolio (FMV)* Allied Minds (LSE:ALM) 1.82 Imperial Innovations (AIM:IVO) 1.68 IP Group (LSE:IPO) 1.57 PureTech Health (LSE:PRTC) 1.39 Average Price to Portfolio 1.61 Trendlines Price to Portfolio 0.75 *Based on market cap at 3 November
Slide 19: Stock Overview
Trendlines: Stock Overview As at 4 November 2016 SGD Last Price 0.171 IPO Price 0.330 52-Wk High 0.395 52-Wk Low 0.133 Market Cap 87.0 million Shares Outstanding 508.8 million Free Float 358.1 million Trendlines traded in U.S. • OTCQX International • ADR (1 ADR : 50 ordinary shares) • Ticker: TRNLY
Slide 20: Our Business Strategy
Trendlines: Our Business Strategy Intense Support/Increase Number of Portfolio Companies • Create and develop companies to improve the human condition • More than 30 companies to be added to Portfolio over 3 years Follow-On Investments in Portfolio Companies • Accelerate portfolio company developmen
Slide 21: Selected Portfolio Companies
Selected Portfolio Companies 21
Slide 22: ApiFix: Incremental Scoliosis Treatment System
Trendlines’ Portfolio: Incremental Scoliosis Treatment System ApiFix Ideation Identified serial entrepreneur-spine expert Revenue Stage Investment & Intense Support • Raised US$3.5 million in two rounds • US$5 million round in process; 70% completed • Trendlines holding: 29.4% (following round in pr
Slide 23: BioFishency: Water Treatment System for Aquaculture
Trendlines’ Portfolio: Water Treatment System for Aquaculture BioFishency Solution Cost-effective, all-in-one water treatment system for Revenue reduced water use and improved yields in land-based Stage aquaculture. Operates with all existing aquaculture systems: extensive, intensive, and recirculat
Slide 24: EdenShield: Natural, Nontoxic Bio-Insecticide
Trendlines’ Portfolio: Natural, Nontoxic Bio-Insecticide EdenShield Solution Natural, nontoxic insect control system for greenhouse Revenue crops, ornamentals, and cannabis that when applied to Stage screens reduces insect attraction; based on extracts of plants endemic to Israel’s semi-desert regio
Slide 25: Gordian Surgical: Trocar with Integrated Closure System
Trendlines’ Portfolio: Trocar with Integrated Closure System Gordian Surgical Ideation Trendlines identified foreign inventors Business Development Investment & Intense Support Stage • Formed company in Israel and recruited CEO • Ongoing management and technical support Achievements • Completed US$1
Slide 26: Creating & Developing Companies To Improve the Human Condition
Creating & Developing Companies To Improve the Human Condition Todd Dollinger, Chairman & CEO todd@trendlines.com Steve Rhodes, Chairman & CEO steve@trendlines.com +972.72.260.7000 | www.trendlines.com Judith Kleinman, Director Investor Relations judith@trendlines.com 9 November 2016 26
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