Trendlines Group Ltd. · SGX:42T
Trendlines — The Trendlines Group — Investor Presentation (March 2018)
27 slides from Trendlines's investor presentation, March 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 March 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 *Portfolio value includes the fair value of investments
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 December 2017 70 60 50 40 30 Cash invested 20 Total investment = Cash + in-kind Pre-exit carrying value 10 Exit value (1) 0 (1) Includes present value of Most Valuable Portfolio Company 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 Most Valuable Portfolio 2014 Undisclosed** 82.7 X*** 80 Compan
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 tria
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 Haier Government of Israel 12
Slide 13: Trendlines Labs
Trendlines Labs • 2 Trendlines portfolio companies: Selected Trendlines Labs inventions Limaca and InterVaal Field Invention Status • Partnerships in Singapore, Japan, Reduced infection-risk New company: Urology Foley catheter InterVaal (Singapore) Europe, U.S. Disposable surgical • Growing investme
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 December 2017; 29 written-off portfolio companies and 1 company established before September 2007 not listed. One of our 10 most valuable portfolio companies as at 31 December 2017. 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, 70.1% of total portfolio value of ~US$96.8 million.* Company name Initial investment % owned (fully diluted) ApiFix Ltd. 2011 24.02 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: 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 developmen
Slide 21: 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$5 million in
Slide 22: Financial highlights
Financial highlights
Slide 23: Key value components
Key value components Change in portfolio value during year Balance sheet (US$ millions) 20.4 (3.8) (7.8) (5.3) 16.4 (13.8) 4.5 (1.4) 83.7 96.8 92.9 Net portfolio Investments and Fair value Fair value Net portfolio Cash, short-term Fair value of Deferred Deferred tax** Payables & Total equity value 3
Slide 24: Stock overview
Stock overview Trendlines’ SGX share price movement – 12 months (S$) As at SGX: 42T OTCQX: TRNLY 5 March 2018 S$ US$ Last price S$ 0.135 US$ 5.37 IPO price S$ 0.33 – 52-wk high S$ 0.18 US$ 6.15 52-wk low S$ 0.13 US$ 4.45 Market cap S$ 82.2million US$ 65.4 million Shares Each OTCQX ADR 608.8 million
Slide 25: Traded peer group & industry comparables
Traded peer group & industry comparables Price to portfolio (FMV*) Allied Minds (LSE:ALM) 0.96 IP Group (LSE:IPO) 1.78 Malin Corporation (ISE:MLC) 1.01 Mercia Technologies (AIM:MERC) 1.63 PureTech Health (LSE:PRTC) 1.42 Average price to portfolio 1.36 Trendlines price to portfolio 0.75 *Based on mar
Slide 26: 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 26
Slide 27: 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 March 2018
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