Trendlines Group Ltd. · SGX:42T
Trendlines — The Trendlines Group — Investor Presentation (May 2018)
29 slides from Trendlines's investor presentation, May 21, 2018
Slide 1: The Trendlines Group Investor presentation
The Trendlines Group Investor presentation Steve Rhodes Todd Dollinger Gabi Heller Chairman and CEO Chairman and CEO Chief Financial Officer 21 May 2018 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: 10 years of portfolio value expansion
10 years of portfolio value expansion US$ millions Portfolio value with exit proceeds 140 120 Portfolio Value* 100 Cumulative Exit Proceeds 80 60 40 20 0 30.12.08 30.12.09 30.12.10 30.12.11 31.12.12 31.12.13 31.12.14 31.12.15 31.12.16 31.12.17 31.3.18 *Portfolio value includes the fair value of inve
Slide 4: Trendlines: building companies, commercializing innovation
Trendlines: building companies, commercializing innovation Life science incubators 4
Slide 5: Trendlines: building companies, commercializing innovation
Trendlines: building companies, commercializing innovation In-house innovation center of The Trendlines Group Inventing and developing technologies to address unmet market needs 5
Slide 6: Carrying value on eve of exit vs. exit value
Carrying value on eve of exit vs. exit value US$ millions Total exits through 31 March 2018 70 60 50 40 Cash invested 30 Total investment (cash + in-kind) 20 Pre-exit carrying value Exit value* 10 0 *Includes present value of Stimatix GI estimated royalties. 6
Slide 7: Exits: estimated returns and IRR
Exits: estimated returns and IRR Exit Company/Description Acquirer Estimated Return* IRR (%) 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 80.0 X** 80 2014 Inspiro Medical
Slide 8: The Trendlines model
The Trendlines model
Slide 9: The Trendlines model: capital leverage
The Trendlines model: capital leverage* Trendlines’ typical investment ~US$1,420,000 per company In-kind Trendlines Government investment at capital grant cost ~US$120,000 ~US$650,000 ~US$650,000 over two years *Model shown is Israel; similar leverage in Singapore 9
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 strategic of Singapore partnerships Government Haier of Israel 12
Slide 13: Trendlines Labs
Trendlines Labs • 3 Trendlines portfolio companies: Selected Trendlines Labs inventions Limaca, InterVaal and PregnanTech Field Invention Status • Partnerships in Singapore, Japan, Reduced infection-risk Company formed: Urology Foley catheter InterVaal (Singapore) Europe, U.S., China Disposable surg
Slide 14: Decades of company-building experience
Decades of company-building experience Nitza Kardish, Ph.D. Todd Dollinger VP The Trendlines Group Yosi Hazan Chairman & CEO CEO Trendlines Incubators Israel CEO Trendlines Labs Eric Loh CEO Trendlines Medical Singapore Steve Rhodes Chairman & CEO Gabi Heller Moshe Katzenelson CFO & Joint Co. Sec’y.
Slide 15: Expanding portfolio value
Expanding portfolio value
Slide 16: Achieving milestones to create value
Achieving milestones to create value As at 31 March 2018; 30 written-off portfolio companies and 1 company established before September 2007 not listed. One of our 10 most valuable portfolio companies as at 31 March 2018. 16
Slide 17: 10 most valuable portfolio companies
10 most valuable portfolio companies Fair market value of 10 most valuable portfolio companies ~US$67.8 million, 69.6% of total portfolio value of ~US$97.4 million.* Company name Initial investment % owned (fully diluted) ApiFix Ltd. 2011 19.96 Arcuro Medical Ltd. 2013 37.36 BioFishency Ltd. 2013 48
Slide 18: 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 Investment & Intense Support • US$10.8 million raised in three rounds • Last round led by B. Braun • Investors brought
Slide 19: A breakthrough in heart pump technology
A breakthrough in heart pump technology Wireless system provides constant power needs of heart pump (LVAD) implants to eliminate complications related to drive line cables Investment & Intense Support • Active guidance in marketing, business development, investment banking • Assisted in raising US$8
Slide 20: Low-profile solutions for colostomy management
Low-profile solutions for colostomy management Development of low-profile innovative solutions for colostomy management, created to improve the quality of life for people with stomas. Achievements • Multiple successful clinical studies completed • Received CE and FDA approval within 3 years Status •
Slide 21: Water treatment system for aquaculture
Water treatment system for aquaculture Cost-effective, all-in-one water treatment system for reduced water use and improved yields in all types of land-based aquaculture systems (extensive, intensive, and recirculated) Investment & Intense Support • Active guidance in marketing, business development
Slide 22: Natural, nontoxic insect control products
Natural, nontoxic insect control products Natural, nontoxic bio-insecticides products for greenhouse crops, ornamentals, and cannabis mask odors to reduce insect attraction Investment & Intense Support • Active guidance in marketing, business development, investment banking • Raised ~US$5 million in
Slide 23: Financial highlights
Financial highlights
Slide 24: Key value components
Key value components Change in portfolio value during quarter Balance sheet (US$ millions) 18 (4) (5.1) (13.8) 2.3 (1.7) (1) 96.8 97.4 91.5 Net portfolio Investments Fair value Net portfolio Cash, short- Fair value of Deferred Deferred tax** Payables & Total equity value 31.12.17 and new decrease &
Slide 25: Stock overview
Stock overview Trendlines’ SGX share price movement – 12 months (S$) As at SGX: 42T OTCQX: TRNLY 21 May 2018 S$ US$ Last price S$ 0.129 US$ 4.80 IPO price S$ 0.33 – 52-wk high S$ 0.18 US$ 6.15 52-wk low S$ 0.12 US$ 4.36 Market cap S$ 78.5million US$ 58.4 million Shares Each OTCQX ADR 608.8 million o
Slide 26: Traded peer group & industry comparables
Traded peer group & industry comparables Price to portfolio (FMV1) Allied Minds (LSE:ALM) 0.97 IP Group (LSE:IPO) 1.31 Malin Corporation (ISE:MLC) 0.89 Mercia Technologies (AIM:MERC) 2.12 PureTech Health (LSE:PRTC)2 n/a2 Average price to portfolio 1.32 Trendlines price to portfolio 0.60 1. Based on
Slide 27: Factors driving value expansion
Factors driving value expansion 1 Increasing number of portfolio companies 2 Building portfolio companies’ value through intense support 3 Building companies for exit 4 Trendlines Labs: creating new IP and new portfolio companies; generating recurring revenues 27
Slide 28: 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 Gabi Heller, Chief Financial Officer gabi@trendlines.com 21 May 2018
Slide 29: SGX announcement details
Issuer/Manager THE TRENDLINES GROUP LTD. Securities THE TRENDLINES GROUP LTD. – IL0011328858 – 42T Stapled Security No Announcement Title General Announcement Date & Time of Broadcast 24-May-2018 17:40:18 Status New Announcement Sub Title Investor Presentation - May 2018 Announcement Reference SG180
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