Slide 1: Nestlé Life Ventures Fund
Nestlé Life Ventures Fund Nestlé Investor Seminar R&D Centre, 26.05.2003 inventages venture capital Dr. Gunnar Weikert 1 inventages venture capital GmbH
Slide 2: Forward looking statements
This presentation contains forward looking statements which reflect Management’s current views and estimates. The forward looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those contained in the forward looking statements. Potential
Slide 3: Agenda
Agenda 1. Introduction 2. Why venture capital for Nestlé and Fund Structure 3. Overview of deal flow 4. A typical investment 3 inventages venture capital GmbH
Slide 4: My Background
My Background • Medical Doctor • PhD in Diabetes and Obesity Research • MBA Education • International Work experience: – US, Europe, Near East, Asia • 10 years in the Pharmaceutical Industry – Research ,Marketing and Sales, Strategy, Business Development, M&A-Department, Investment Mgt • Since 1999
Slide 5: Agenda
Agenda 1. Introduction 2. Why venture capital for Nestlé and Fund Structure 3. Overview of deal flow 4. A typical investment 5 inventages venture capital GmbH
Slide 6: The fund is integral part of Nestlé's vision
The fund is integral part of Nestlé’s vision to become a Nutrition, Health and Wellbeing Company STRATEGIC OBJECTIVE • Access to emerging technologies and innovations • Early identification of emerging trends • Create value out of business opportunities which Nestlé cannot exploit (e.g. too small, n
Slide 7: Investment Strategy
Investment Strategy • Achieve long-term capital growth, rather than short-term trading profits • The Fund will achieve this by making equity investments in companies • The Fund intends to hold its Portfolio Companies in a mid to long-term period 7 inventages venture capital GmbH
Slide 8: Fund structure reflects a long term view
Fund structure reflects a long term view • Fund size: € 150 million • Term: 10+2 years • Geographical focus: worldwide • Operational since: 10 months • Option for Nestlé to invest in second fund after 5 years • The fund is managed independently by Inventages Venture Capital 8 inventages venture capi
Slide 9: Fund Structure
Fund Structure Controlling Function: Operational Input: Board of Directors Scientific Input: Chairman: Reichenberger SBU´s Scientific Advisors Zones R&D Center Markets PTC´s Life Ventures by Nestlé € 150 million Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfoli
Slide 10: Key investment areas identified in close collaboration with Nestlé
Key investment areas of the fund were identified in close collaboration with Nestlé Bioactives Diagnostic Prevention Food Safety profiling Nutraceuticals, Genomics Skin Care, Genetic Markers, Flavors Proteomics, Safety Analytics, Metabolomics Tracking Systems Smell & Taste Receptors Targeted New Sou
Slide 11: Standardized processes and systematic control lead to quality and efficiency
Standardized processes and systematic control lead to quality and efficiency Filter 1 Filter 2 Filter 3 Filter 4 BP / Investment Investment Presentation by Visit of the Memorandum Focus Fit (IFF) the company company ensure complete does the concept check the see the reality information fit in our ma
Slide 12: Selection Criteria for Investment
Selection Criteria for Investment • Quality of Technology – Broad technology/product platform with fit to investment focus – Clear USP of technology – Strong IP position • Independent legal entity • Fully dedicated management team • Compensation highly depending on success of venture • Clear revenue
Slide 13: Minority rights give additional control over investments
Minority rights give additional control over investments • Minority shareholder special rights: i.e.: – Altering any rights affecting our investment – Any merger, trade sale, change of control, or IPO – Change of Board size – Declaration or payment of any dividends – Redemption of common stock • Liq
Slide 14: Financial impact of Liquidation Preference
Financial impact of Liquidation Preference US$ mill 12 10 (16.8%) Pro-rata return 8 (24%) (11%) (11% of company) 6 Return due to 4 (11%) Liquidation Preference 2 0 Assumed company value $25 mill $50 mill Downward protection mitigates the risk in case of lower future valuation 14 inventages venture c
Slide 15: Profile of Investment Managers
Profile of Investment Managers Educational background: • Science (biology, chemistry, medicine), marketing, financing, legal or MBA Work experience: • Industry • Fund manager, analyst, venture capitalist • Consultant • Lawyer • Age 35 to 45 • Highly motivated • Can work within international team • A
Slide 16: Efficient and effective communication channels with Nestlé players
Efficient and effective communication channels with relevant Nestlé players are established • Aligned identification of emerging technology needs by SBU´s, NSBD, PTC´s and NRC • Leveraging of the full Nestlé organization in the identification of business opportunities; including the Zones and Market
Slide 17: Agenda
Agenda 1. Introduction 2. Why venture capital for Nestlé and Fund Structure 3. Overview of deal flow 4. A typical investment 17 inventages venture capital GmbH
Slide 18: From a solid deal flow we only select the best candidates
From a solid deal flow we only select the candidates with the highest potential • More than 300 companies screened • 5-10 new business proposals per week • 23 companies negotiations stage 18 inventages venture capital GmbH
Slide 19: Over 300 companies screened so far
Over 300 companies screened so far by investment stage by investment size < € 2 mio First round 35% 43% € 2-5 mio Second round 22% Late stages € 5-10 mio > € 10 mio by zone by country US Germany Switzerland Europe UK France Americas Israel AOA Scandinavia Canada Benelux Australia Others 19 inventage
Slide 20: Over 300 companies screened so far
Over 300 companies screened so far by investment stage by investment size < € 2 mio First round 24% 41% € 2-5 mio Second round 15% 21% Late stages € 5-10 mio > € 10 mio by zone by country US Germany Switzerland Europe UK France Americas Israel AOA Scandinavia Canada Benelux Australia Others 20 inven
Slide 21: Over 300 companies screened so far
Over 300 companies screened so far by investment stage by investment size < € 2 mio First round € 2-5 mio Second round Late stages € 5-10 mio > € 10 mio by zone by country US Germany Switzerland 8% Europe UK 36% 56% France Americas Israel AOA Scandinavia Canada Benelux Australia Others 21 inventages
Slide 22: Over 300 companies screened so far
Over 300 companies screened so far by investment stage by investment size < € 2 mio First round € 2-5 mio Second round Late stages € 5-10 mio > € 10 mio by zone by country US Germany Switzerland Europe UK 32% France Americas 17% 22% Israel AOA Scandinavia Canada Benelux Australia Others 22 inventage
Slide 23: Deal flow is well balanced
Deal flow is well balanced Deal flow by Key Investment Areas 5% Innovative Food 6% 14% Green Biotech 9% Diagnostic Profiling 8% Bioactives 6% Food Safety Delivery Systems 6% Process Technologies 21% Consumer Management Novel Packaging 25% 23 inventages venture capital GmbH
Slide 24: Entrepreneurial community sees nutrition, health and wellbeing as future value field
Entrepreneurial community sees nutrition, health and wellbeing as an important field of future value creation Investment opportunities in the area of nutrition, health, wellbeing 72% 28% 24 inventages venture capital GmbH
Slide 25: Agenda
Agenda 1. Introduction 2. Why venture capital for Nestlé and Fund Structure 3. Overview of deal flow 4. A typical investment 25 inventages venture capital GmbH
Slide 26: Natural derived bioactives for promising functional products
Natural derived bioactives for promising functional products • Galileo Labs, California, USA • Natural derived antioxidant compounds Technology of Galileo Conventional • New cell-based discovery of Complex diseases have often multiple concurrent Approach natural derived compounds for Single-Target D
Slide 27: Galileo Laboratories
Galileo Laboratories • Investment focus: Development of high potential antioxidant compounds • Investment amount: US$ 6 mill • Investment round: US$ 31 mill • Co-investors: Alloy Ventures Bay City Capital Novartis Bioventures Singapore EDB • Investment rational: Strong scientific base Extensive pipe
Slide 28: Promising pipeline secured top deals
Promising pipeline secured top deals • Several compounds with strong clinical data, i.e.: – Consumer skin care (product launches planned 2005) – Consumer oral care (product launch planned 2005) – Medical/functional food (obesity, renal failure, inflammatory bowel disorders) – Animal health (immune d
Slide 29: Nestlé Life Ventures Fund
Nestlé Life Ventures Fund Nestlé Investor Seminar R&D Centre, 26.05.2003 inventages venture capital Dr. Gunnar Weikert 29 inventages venture capital GmbH