Elron Ventures Ltd · TASE:ELRN

Elron Ventures — Investor Presentation (November 2013)

35 slides from Elron Ventures's investor presentation, November 2013

  1. Slide 1: Investor Presentation November 2013

    INVESTOR PRESENTATION / NOVEMBER 2013

  2. Slide 2: Forward-Looking Information

    Forward-Looking Information This presentation is for information purposes only. By this presentation, Elron does not intend to solicit offers to purchase its securities and the presentation does not constitute an invitation to receive such offers. Elron may make improvements and/or changes in the fe

  3. Slide 3: Q3/13 Highlights

    ELRON Q3/13 > HIGHLIGHTS ELRON

  4. Slide 4: News

    ELRON Q3/13 > HIGHLIGHTS NEWS  GIVEN IMAGING: Record sales during Q3/13- Sales amounted to $50m, a 10% increase compared to Q3/12.  GIVEN IMAGING is releasing “trapped profits”.  The PillCam SB 3 received marketing clearance in the U.S. and Japan. Given Imaging expects to begin recognizing sales

  5. Slide 5: 2010-2013: Back to a Technology Holding Company

    ELRON 2010-2013: BACK TO A TECHNOLOGY HOLDING COMPANY

  6. Slide 6: Focus on Medical Devices

    ELRON 2010-2013: BACK TO A TECHNOLOGY HOLDING COMPANY FOCUS ON MEDICAL DEVICES  Our main focus since 2009 has been investing in medical device companies.  The value of M&As in this industry in the U.S. and Europe totaled $35b over the last year.  We leverage our know-how, expertise, and internati

  7. Slide 7: $180m invested by Elron in med-tech companies

    ELRON 2010-2013: BACK TO A TECHNOLOGY HOLDING COMPANY FOCUS ON MEDICAL DEVICES $180m invested by Elron in med-tech companies during the last few years

  8. Slide 8: Since 2009, Elron led exits amounting to $400M in the aggregate

    ELRON 2010-2013: BACK TO A TECHNOLOGY HOLDING COMPANY SINCE 2009, ELRON LED EXITS AMOUNTING TO $400M IN THE AGGREGATE

  9. Slide 9: Specialty over Diversity

    ELRON 2010-2013: BACK TO A TECHNOLOGY HOLDING COMPANY SPECIALTY OVER DIVERSITY  Investments which afford us significant influence and active involvement  Early-stage companies, where control or joint control can be acquired at a reasonable value  Flexibility for long-term support and commitment 

  10. Slide 10: Our Strategic Alliance

    ELRON 2010-2013: BACK TO A TECHNOLOGY HOLDING COMPANY OUR STRATEGIC ALLIANCE Strategic partnership between Elron and Rafael, through a jointly owned subsidiary, that has access to state of the art technologies developed by Rafael and exclusive rights to commercialize them in civilian markets Rafael

  11. Slide 11: Our Strategic Alliance

    ELRON 2010-2013: BACK TO A TECHNOLOGY HOLDING COMPANY OUR STRATEGIC ALLIANCE Combining Rafael’s extensive scientific know-how, advanced R&D capabilities, technological innovation and resourcefulness with Elron’s strong financial base, access to capital markets, management skills and strategic expert

  12. Slide 12: From Debt to Dividend Distribution: Current Resources

    ELRON 2010-2013/finance FROM DEBT TO DIVIDEND DISTRIBUTION CURRENT RESOURCES $23m cash balance as of Sep. 30, 2013 $25m unutilized credit line from Silicon Valley Bank $13m cash balance at RDC as of Sep. 30, 2013 We continue to seek new investment opportunities in the medical device industry, and ha

  13. Slide 13: Elron 2013/4

    ELRON 2013/4 > CATALYSTS ELRON

  14. Slide 14: Major Group Holdings

    ELRON 2013/4 > CATALYSTS MAJOR GROUP HOLDINGS Business Shareholdings Elron’s investment world leader in GI medical devices and pioneer 30% of capsule endoscopy (8.36% by RDC) NA real-time & automated microbiology laboratory system 41% $27.4m treatment of ischemic stroke in 24h window post symptom on

  15. Slide 15: BrainsGate: Catalysts

    ELRON 2013/4 > CATALYSTS  Elron’s holding: 30%  Founded: 2000  First investment by Elron: 2005  ~$70m have been invested to date, of which ~$21m by Elron  Main partners: Johnson & Johnson, Boston Scientific, Pitango, Cipio Partners  Device for treating ischemic stroke in 24 hour window post sy

  16. Slide 16: Cost and burden of stroke

    ELRON 2013/4 > CATALYSTS The direct and indirect cost of stroke in the U.S. in 2010 was estimated at $73.7b 15 million people suffer a stroke worldwide each year of stroke victims receive treatment 5% in the limited 3-4.5 hour window 15-30% of stroke survivors are left permanently disabled Sources:

  17. Slide 17: Why 24 Hours?

    ELRON 2013/4 > CATALYSTS WHY 24 HOURS? tPA (current treatment): SPG stimulation: dissolve clot augment cerebral blood flow  Restores blood flow to the blocked  Electrical stimulation induces blood vessel dilation of cerebral blood vessels, and thus augments blood flow  Due to the temporary interr

  18. Slide 18: Implant and Implantation Site

    ELRON 2013/4 > CATALYSTS IMPLANT AND IMPLANTATION SITE

  19. Slide 19: Catalyst 2013/4

    ELRON 2013/4 > CATALYSTS  In 2010 BrainsGate completed a clinical trial on approximately 300 patients, whose results strengthened the assessment that BrainsGate’s treatment has a considerable clinical effect, which is stronger than the effect found in current treatments.  Since June 2011, BrainsGa

  20. Slide 20: Pocared: Catalysts

    ELRON 2013/4 > CATALYSTS  Elron’s holding: 41%  Founded: 2004  First investment by Elron: 2007  ~$66m have been invested to date, of which ~$27m by Elron  Main partner: SCP Vitalife  Real-time and automated microbiology laboratory system, using optical technology  The system is designed for u

  21. Slide 21: Global microbiology diagnostic market

    ELRON 2013/4 > CATALYSTS The global microbiology diagnostic market at 2013 is expected to total approximately $4.5b million urine cultures are 125 performed each year in the U.S. of urine cultures return with 70% negative results, after antibiotics have been unnecessarily administered Sources: Frost

  22. Slide 22: Diagnosis in under 20 minutes

    ELRON 2013/4 > CATALYSTS DIAGNOSIS IN UNDER 20 MINUTES: urine sample a complete transfer carousel to cartridge cartridge carousel optical analyzer module results…

  23. Slide 23: Catalyst 2013/4

    ELRON 2013/4 > CATALYSTS  In December 2011, the company received CE certification.  Pocared is collecting urine samples for a diagnostic trial to prove the efficacy of its system's first application, UTI diagnosis. The trial is expected to support its planned FDA submission. The diagnostic trial i

  24. Slide 24: Given Imaging

    ELRON 2013/4 > CATALYSTS  Market cap - ~$660m (November 2013)  Q3/13 revenues - $50m ;2012 revenues - $181m  Cash and financial assets - ~$140m (as of Sept. 30, 2013)  In the United States, Given Imaging completed an 885-patient, multi- center pivotal clinical trial with the PillCam COLON 2 caps

  25. Slide 25: PillCam COLON 2

    ELRON 2013/4 > CATALYSTS PILLCAM COLON 2: Sources: http://www.guideline.gov/content.aspx?id=14346; http://www.webmd.com/colorectal-cancer/which-test-should-i-have-to-screen-for- colorectal-cancer#zx3796; Lieberman D. Screening for colorectal cancer. New England Journal of Medicine. 2009: 361;12; Spa

  26. Slide 26: Elron 2015+: CartiHeal, Notal Vision, Kyma

    ELRON 2015 + CARTIHEAL NOTAL VISION KYMA

  27. Slide 27: CartiHeal

    ELRON 2015+  Elron’s holding: 32%  Founded in 2009; First investment by Elron in 2012.  $13m invested in company to date, including $5m by Elron.  Other investors include Accelmed (owned by Mori Arkin) and Access Medical Ventures.  Implants for repairing cartilage and osteochondral defects in l

  28. Slide 28: CartiHeal post-op results

    ELRON 2015+ 1 day post-op: 6 months post-op:

  29. Slide 29: Notal Vision

    ELRON 2015+  Elron’s holding : 22%  Founded in 2000; First investment by Elron in 2003.  $27m invested in company to date, including $6.5m by Elron.  Remote monitoring of patients at risk of vision loss from AMD.  AMD destroys sharp, central vision, necessary for common tasks such as facial rec

  30. Slide 30: Kyma

    ELRON 2015+  Elron’s holding (through RDC): 37%  Founded in 2008; First investment by Elron in 2009.  $10.5m invested in company to date, including $8.5m by RDC.  Miniature device for the continuous remote monitoring of chronic heart failure (CHF) patients, inserted beneath the skin or attached

  31. Slide 31: Q3/13 Financials

    ELRON Q3/13 > FINANCIALS ELRON

  32. Slide 32: Public and Private Holdings

    ELRON Q3/13 > FINANCIALS Public Holdings 1 ($m) (Market value as of Nov. 8, 2013) Given Imaging 177.2 Other holdings 1.1 Total Public Holdings 178.3 Private Holdings 1 (Book value as of Sept. 30, 2013) Pocared 1.9 BrainsGate 1.3 Jordan Valley 11.4 Other holdings 2 16.2 Total Private Holdings 30.8 Fi

  33. Slide 33: Quote from Uzia Galil, Elron's founder

    “ Looking ahead, Elron should always understand that the ever evolving changes in the high tech industry will be exponential, and therefore, success will depend on choosing the right niches in the world market in which it can maintain and improve its relative advantage. Mr. Uzia Galil, Elron’s found

  34. Slide 34: The Bottom Line

    ELRON > THE BOTTOM LINE  Unique access to Israel’s world-class human capital, R&D resources, universities, & scientific institutions  An operational holding company with the ability to provide long-term commitment to group companies  Strategic alliance with Rafael and access to state of the art m

  35. Slide 35: Visit us at elron.com

    visit us at elron.com

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