Trendlines Group Ltd. · SGX:42T
Trendlines — The Trendlines Group — Q3 2018 Earnings Presentation
28 slides from Trendlines's earnings presentation, Nov 8, 2018
Slide 1: The Trendlines Group Investor presentation
The Trendlines Group Investor presentation Steve Rhodes Todd Dollinger Haim Brosh Chairman and CEO Chairman and CEO Chief Financial Officer 8 November 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: 11 years of portfolio value expansion
11 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 30.09.18 *Portfolio value includes the fair value of inv
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 30 September 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 Estimated Exit Company/Description Acquirer IRR (%) Return* Wai Tech (Hong Kong) 2017 MitrAssist 2.1 X 12 Holding Ltd. 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 79.1 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 typical capital leverage model for companies in Israel; similar leverage
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 of Singapore strategic partnerships Sirius VC Government of Israel 12
Slide 13: Trendlines Labs
Trendlines Labs • Established 4 Trendlines portfolio companies: InterVaal, PregnanTech, Hyblate Medical, Limaca • 3 companies in formation: SUI, bladder mapping, sZone • Partnerships in Singapore, Japan, Europe, U.S., China Selected Trendlines Labs inventions Field Invention Status Urology Reduced i
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 VP The Trendlines Group CEO Trendlines Labs Steve Rhodes Chairman & CEO Eric Loh Haim Brosh CFO & CEO Trendlines Medical Joint Co. Sec’y. Sing
Slide 15: Expanding portfolio value
Expanding portfolio value
Slide 16: Companies achieving milestones to create value
Companies* achieving milestones to create value *51 portfolio companies as at 30 September 2018; 30 written-off portfolio companies and 1 company established before September 2007 not included. One of our 10 most valuable portfolio companies as at 30 September 2018. 16
Slide 17: 10 most valuable portfolio companies
10 most valuable portfolio companies Fair market value of 10 most valuable portfolio companies ~US$69.3 million, representing 67.6% of total portfolio value of ~US$102.5 million.* Initial Company name % owned (fully diluted) investment ApiFix Ltd. 2011 20.48 Arcuro Medical Ltd. 2013 37.36 BioFishenc
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 Achievements • Targeted sales in Canada, Europe, and Asia • Completed >250 successful surgical procedures • Surgical p
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 Achievements • Chronic animal trials and integration with LVADs with successful 120+ day follow-up • Successful preclinical stud
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 • B. Braun has established high-volume manufacturing facility • Commercial launch of product in 2018 • C
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) Achievements • Units operating in China, Singapore, Indonesia, Bangladesh, India,
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 Achievements • Achieved US$208,000 sales in the H1 2018, 28% increase over H1 2017 • Strong distributors in Spain, Greece, Isra
Slide 23: Financial highlights
Financial highlights
Slide 24: Key value components
Key value components Change in portfolio value during 9M 2018 Balance sheet as at 30 September 2018 (US$ millions) 13.9 (3.5) (4.1) (15.1) 11.4 (5.7) (0.9) 96.8 102.5 92.8 Net portfolio Investments Fair value Net portfolio Cash, short- Fair value of Deferred Deferred tax** Payables & Total equity va
Slide 25: Stock overview
Stock overview Trendlines’ SGX share price movement: Jan - Oct 2018 (S$) As at SGX: 42T OTCQX: TRNLY 4 Nov 2018 S$ US$ Last price S$ 0.104 US$ 3.600 IPO price S$ 0.33 – 52-wk high S$ 0.174 US$ 5.95 52-wk low S$ 0.093 US$ 3.58 Market cap S$ 63.3 million US$ 43.8 million Shares Each OTCQX ADR = 608.7
Slide 26: Traded peer group & industry comparables
Traded peer group & industry comparables Price to portfolio (FMV1) Allied Minds (LSE:ALM) 0.53 IP Group (LSE:IPO) 1.09 Malin Corporation (ISE:MLC) 0. 45 Mercia Technologies (AIM:MERC) 1.44 PureTech Health (LSE:PRTC) n/a2 Average price to portfolio 0.88 Trendlines price to portfolio 0.43 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 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 Haim Brosh, Chief Financial Officer haim@trendlines.com 8 November 2018