Elron Ventures Ltd · TASE:ELRN
Elron Ventures — Elron Electronic Industries — Investor Presentation (May 2012)
31 slides from Elron Ventures's investor presentation, May 24, 2012
Slide 1: Form 6-K Report of Foreign Issuer, Elron Electronic Industries
FORM 6-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Report of Foreign Issuer Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934 For the Month of May 2012 ELRON ELECTRONIC INDUSTRIES LTD. (Translation of Registrant’s Name into English) 3Azrieli Center, Triangle Bu
Slide 2: English Translation of Registrant's Investors' presentation
English Translation of Registrant's Investors' presentation filed with the Israeli Securities Authority. 2
Slide 3: Signature
SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. ELRON ELECTRONIC INDUSTRIES LTD. (Registrant) By: /s/ Yaron Elad Yaron Elad VP & CFO Dated: May 24, 2012
Slide 4: Investors Presentation May 2012
Investors Presentation May 2012
Slide 5: 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 6: Elron overview: 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 7: Major exits 2009-2011
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 Enablence for $50m Sale of company to Industries Alvarion for $30m and Investments for
Slide 8: U.S. healthcare expenditure
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 constant and significant spending: growth Source: Centers for Medicare & Medicaid Services, Office of the Actuary, N
Slide 9: Annual healthcare spending per person expected to reach $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 10: 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 11: 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 12: $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 13: Group companies / med-tech
ELRON > MED TECH GROUP COMPANIES / MED-TECH:
Slide 14: 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 strateg
Slide 15: Main investments 2011
M. AIN INVESTMENTS 2011 > — —_ ON ° ~ = i: pOCARED / Diagnostics increased holdings from 32% to 41% ) : ; kyma $8 SmartWave New investment <= New investment through RDC through RDC @ BrainsGate increased holdings from 23% to 29% ELRON
Slide 16: Group Companies Overview
GROUP COMPANIES OVERVIEW
Slide 17: 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
Slide 18: Direct cost of strokes in the US 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 19: 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 20: 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 21: Global microbiology diagnostic market
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 22: Pocared CE certification and FDA trial
§ 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 23: Kyma Medical: remote monitoring for heart failure
§ 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 24: Cost of heart failure in the U.S.
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 25: SmartWave: atrial fibrillation defibrillator
§ 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 heart’s normal rhythm (electrical cardioversion). § RDC’s holding:
Slide 26: Direct cost of AF in the U.S. in 2008
The estimated direct cost of AF in the U.S. in 2008 amounted to approximately Billion US $ American Heart Association: Heart Disease and Stroke Statistics - 2012 Update
Slide 27: Strategic partnership between Elron and Rafael
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 28: 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 29: Elron Summary
ELRON > SUMMARY § Leading investor with hands-on investment & management capabilities § Focus on medical devices: ~$150m invested by Elron in med-tech over last 5 years § Broad business development platform that encompasses largest global med-tech companies § The way Elron works: identify opportunit
Slide 30: Elron Financial Data
ELRON > FINANCIAL DATA Effective Public Holdings ($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 31: info@elron.com
ion StouPipaTYO? info@elron.com
Elron Electronic Industries — Investor Presentation (May 2012) on 6ix