Slide 1: IDB GROUP OB nYII7
IDB GROUP OB nYII7
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
Slide 3: Established in 1962; publicly traded technology holding company specializing in med-tech
Established in 1962. Publicly traded technology holding company. Specializes in med-tech investments. Proven track record of identifying, building, developing and exiting companies. Proceeds from exits totaled ~$250 million during the last three years. Strategic partnership with Rafael (
Slide 4: During the last three years Elron led exits amounting to ~$400m in the aggregate
MAJOR EXITS > 2009-2011 During the last three years Elron led exits amounting to ~$400m in the aggregate Sale of company to Roche for $179m Sale of holdings to Discount Investment Sale of company to Corp and Clal Industries Sale of company to Enablence for $50m and Investments for Alvarion for $30m
Slide 5: U.S. healthcare expenditures in 2010
ELRON > MED TECH > HEALTHCARE MARKET U.S. health expenditures in 2010 amounted to: 2,594 which translates to Billion US $ 8,402 US dollars per person 17.9 % of the GDP U.S. healthcare spending: constant and significant growth Source: Centers for Medicare & Medicaid Services, Office of the Actuary, N
Slide 6: Annual healthcare spending per person is expected to increase to $12,000 in 2015
ELRON > MED TECH > HEALTHCARE MARKET Annual healthcare spending per person is expected to increase to $12,000 in 2015 Source: Wells Fargo Insurance Services. Source: Centers for Medicare & Medicaid Services, Office of the Actuary, National Health Statistics Group (“The Nation’s Health Dollar, Calend
Slide 7: The Med-Tech Market
ELRON > MED TECH > HEALTHCARE MARKET THE MED-TECH MARKET TOP FORTUNE 500 COMPANIES 2011: Medical Products & Equipment Source: Fortune magazine: http://money.cnn.com/magazines/fortune/fortune500/2011/industries/ M&As IN THE US AND EUROPE 2007-H1 2011 Source: Ernst & Young and Capital IQ Average deal
Slide 8: US & European M&As by Type of Buyer
ELRON > MED TECH > HEALTHCARE MARKET THE MED-TECH MARKET US & EUROPEAN M&As BY TYPE OF BUYER 2000-H1 2011 Source: Ernst & Young, Capital IQ, Windhover and BMO Capital Markets
Slide 9: $150m invested in med-tech companies during the last 5 years
ELRON > MED TECH $150m invested in med-tech companies during the last 5 years
Slide 10: Group Companies / Med-Tech
ELRON > MED TECH GROUP COMPANIES / MED-TECH:
Slide 11: The Way We Work: Identify, Focus, Active Management
THE WAY WE WORK > IDENTIFY OPPORTUNITIES FOCUS ACTIVE MANAGEMENT Leverage know-how, expertise, and international network to identify and realize opportunities. Enhance value of group companies by providing assistance in the advancement of their technology, forming & advancing multinational strat
Slide 12: Main Investments 2011
MAIN INVESTMENTS 2011 > —_—— ON | pOCARED » y @ BrainsGate s } Diagnostics | Increased holdings from 32% to 41% Increased holdings | from 23% to 29% ¢ ¢ O 38 SmartWave kyma New investment New investment | through RDC through RDC <P, ips ELRON
Slide 13: Group Companies Overview
GROUP COMPANIES OVERVIEW
Slide 14: BrainsGate: device for treating ischemic stroke
Elron’s holding: 29% Device for treating ischemic stroke in 24 hour window post symptom onset, as opposed to treatment with the tPA protein which is only approved for use during 3-4.5 hour window Electrical stimulation of SPG (a nerve center located behind the nasal cavity) to increase blood f
Slide 15: The direct cost of strokes in the US amounted to $73.7 billion in 2010
The direct cost of strokes in the US amounted to $73.7 billion in 2010 Sources: World Health Organization website: http://www.who.int/cardiovascular_diseases/en/cvd_atlas_15_burden_stroke.pdf. American Heart Association: Heart Disease and Stroke Statistics – 2010 Update.
Slide 16: BrainsGate expects to complete the clinical trial during 2013
BrainsGate conducted a clinical trial that included approximately 300 patients to prove the efficacy of its system, which it voluntarily suspended in order to update the trial protocol. The trial results strengthen the assessment that BrainsGate’s treatment has a considerable clinical effect, wh
Slide 17: Pocared: automated system for infectious disease diagnosis
Innovative real-time and automated system for infectious diseases diagnosis using optical technology The system’s first application is diagnosis of urinary tract infection (UTI) The system is designed for use by major microbiological laboratories and hospitals, as an alternative to the current
Slide 18: The global microbiology diagnostic market is expected to total approximately $3 billion in 2012
The global microbiology diagnostic market is expected to total approximately 3 Billion US $ in 2012 125 million urine cultures are performed each year worldwide of urine cultures return with negative 70% results, after antibiotics have been unnecessarily administered Sources: Venture Planning 2006 A
Slide 19: In December 2011, the company received CE certification
The company commenced a diagnostic trial in support of its planned application filing to the FDA at five of the world's leading medical centers. The object of the trial is to assess the efficacy of the system's first application, diagnosis of UTI. Currently, the centers are undergoing staff tr
Slide 20: Kyma Medical: remote monitoring of chronic heart failure patients
Miniature device under development for the continuous remote monitoring of chronic heart failure (CHF) patients, inserted beneath the skin or attached to the patient’s torso in patch form. Kyma’s remote monitoring is intended to enable early treatment, and as a result, reduced hospitalization ad
Slide 21: The patch device is currently undergoing clinical trials
The estimated direct and indirect cost of heart failure in the U.S. in 2009 amounted to 37.2 Billion US $ This amount is expected to increase to $44.6 billion in 2015 and $57.0 billion in 2020. 45% of this amount was spent on hospitalizations. Remote patient monitoring for heart failure has the pote
Slide 22: SmartWave: miniature implantable atrial defibrillator
Miniature implantable atrial defibrillator, under development. The defibrillator immediately and automatically detects and terminates atrial fibrillation (AF) episodes (a type of irregular heartbeat), without the need for hospitalization. The device delivers electrical pulses to restore the he
Slide 23: There is currently no other implantable atrial defibrillator
The estimated direct cost of AF in the U.S. in 2008 amounted to approximately 26 Billion US $ There is currently no other implantable atrial defibrillator. American Heart Association: Heart Disease and Stroke Statistics – 2012 Update
Slide 24: Strategic partnership between Elron and Rafael through RDC
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 Rafael – Advanced Defense Systems develops & manufactures state of the art armaments for the Israel Defe
Slide 25: Elron Summary Q1/12
ELRON > SUMMARY Q1/12 Following the sale of MEDINGO to ROCHE in May 2010 for an immediate consideration of $160m and aggregate contingent payments of $40m, a supplement to the agreement was signed under which in lieu of the contingent payments, one lump sum of $19m will be paid on May 29, 2012, of
Slide 26: Elron Summary
ELRON > SUMMARY Leading investor with hands-on investment & management capabilities Focus on medical devices: ~$150m invested by Elron in med-tech over last 5 years Broad business development platform that encompasses largest global med-tech companies The way Elron works: identify opportunit
Slide 27: Elron Financial Data
ELRON > FINANCIAL DATA Effective Public Holdings ($m) (Market value as of May 13, 2012) Given Imaging 144.5 Other holdings 2.0 Total Public Holdings 146.5 Private Holdings (Book value as of March 31, 2012) Pocared 4.4 BrainsGate 2.2 Other holdings 1 18.7 Total Private Holdings 25.3 Financial Assets,
Slide 28: info@elron.com
IDB GROUP DB nYII7 o s* info@elron.com