Trendlines Group Ltd. · SGX:42T
Trendlines — The Trendlines Group — Investor Presentation (November 2019)
31 slides from Trendlines's investor presentation, November 2019
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 November 2019 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: Trendlines: building companies, building value
Trendlines: building companies, building value Life science incubators 3
Slide 4: Trendlines: building companies, building value
Trendlines: building companies, building value In-house innovation center of The Trendlines Group Inventing and developing technologies to address unmet market needs 4
Slide 5: 12 years of portfolio value expansion
12 years of portfolio value expansion Note: Portfolio value does not reflect US$ millions 7 Singapore-based companies due to consolidation Portfolio value with exit proceeds 140 120 Portfolio value* (excluding consolidated subsidiaries) 100 Cumulative exit proceeds 80 60 40 20 0 31.12.08 31.12.09 31
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 2019 60 50 40 30 Cash invested 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* 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 65.7 X** 76 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 • 8 portfolio companies: interVaal, PregnanTech, Hyblate Medical, Limaca, Avir Medical, Continale Medical, EndoSiQ, Szone Medical • Partnerships in Singapore, Japan, Europe, U.S., China Selected Trendlines Labs inventions Field Invention Status Urology Reduced infection-risk Foley ca
Slide 14: Management team
Management team Todd Dollinger Barak Singer Nir Goldenberg Chairman & CEO CEO Trendlines Incubators CEO Trendlines Labs Israel Nitza Kardish, Ph.D. CEO Trendlines Agrifood Steve Rhodes Haim Brosh Eric Loh Chairman & CEO CFO & CEO Trendlines Medical Joint Co. Sec’y. Singapore 14
Slide 15: Expanding portfolio value
Expanding portfolio value
Slide 16: Companies achieving milestones to create value
Companies* achieving milestones to create value *53 portfolio companies as at 30 September 2019; 34 written-off portfolio companies not included. One of our 10 most valuable portfolio companies as at 30 September 2019. 16
Slide 17: 10 most valuable portfolio companies
10 most valuable portfolio companies Fair market value of 10 most valuable portfolio companies ~US$61.2 million, 65% of total portfolio value of ~US$94.6 million.* Initial Company name % owned (fully diluted) investment ApiFix Ltd. 2011 19.17 AgroScout Ltd. 2017 47.41 BioFishency Ltd. 2013 31.21 lib
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, Israel, Asia • Completed >300 successful surgical procedures • First
Slide 19: A Game-Changer in Heart Pump Technology
A Game-Changer in Heart Pump Technology Fully Implanted Ventricular Assist Device (FIVAD), powered wirelessly using both internal and external components, allows patients to walk around without any physical impediments for up to 8 hours a day Achievements • FIH of FiVAD with successful 40+ day follo
Slide 20: Low-profile solutions for colostomy management
Low-profile solutions for colostomy management Low-profile innovative solutions for colostomy management, created to improve the quality of life for people with stomas Achievements • Commercial launch of product and addition of Be 1® product on B. Braun website • B. Braun has established high-volume
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 7 countries (Asia, Africa & Middle East) • Clos
Slide 22: Miniature stem water potential (SWP) sensor
Miniature stem water potential (SWP) sensor Advanced decision support system for optimal irrigation through a miniature SWP sensor embedded in the trunks of trees, vines, and plants Achievements • Successful field trials in California (vineyards, almond, walnut) • New field trials in South Africa (v
Slide 23: Delivering protein with edible insects
Delivering protein with edible insects Developing optimized methods and technology to grow large quantities of grasshoppers quickly in captivity Achievements • Launched product Q1 2018 • Completed 16 breeding cycles • Increased number of life cycles from 1 to 10 in one year • Multi-award winner (Isr
Slide 24: Financial highlights
Financial highlights
Slide 25: Key value components
Key value components Change in portfolio value during Q32019 Balance sheet as at 30 September 2019 (US$ millions) 7.3 (9.9) 15 (3.3) (2.7) (13.0) (0.9) 97.2 94.6 89.7 Net portfolio Investments and Fair value Net portfolio Cash, short-term Fair value of Deferred Deferred tax** Payables & Total equity
Slide 26: Stock overview
Stock overview As at SGX: 42T OTCQX: TRNLY Trendlines’ SGX share price movement: Nov 2018 - Nov 2019 (S$) 26 Nov 2019 S$ US$ Share price S$ 0.088 US$ 3.16 IPO price S$ 0.33 – 52-wk high S$ 0.109 US$ 3.75 52-wk low S$ 0.076 US$ 2.70 Market cap S$ 62.69 million US$ 45.02 million Shares Each OTCQX ADR
Slide 27: Stock performance: Net Asset Value (NAV)
Stock performance: Net Asset Value (NAV) SGD USD NAV per share/ADR* S$ 0.18 US$ 6.5 Price per share/ADR** S$ 0.088 US$ 3.16 % discount to NAV 52% 51% *As at 30 September 2019 **Market close as at 26 Nov 2019 27
Slide 28: Stock performance: Trendlines vs. Catalist Index trends
Stock performance: Trendlines vs. Catalist Index trends 12-month Trendlines vs Catalist Index Trend 350 12 300 10 250 8 FTSE ST Catalist Index Trendlines’ price per share 200 6 150 4 100 2 50 0 0 1.11.18 3.12.18 2.1.19 1.2.19 1.3.19 1.4.19 2.5.19 3.6.19 1.7.19 1.8.19 2.9.19 1.10.19 1.11.19 FTSE ST C
Slide 29: Traded peer group & industry comparables
Traded peer group & industry comparables Price to portfolio (FMV1) IP Group (LSE:IPO) 0.56 Malin Corporation (ISE:MLC) 0.44 Mercia Technologies (AIM:MERC) 1.12 Average price to portfolio 0. 71 Trendlines price to portfolio 0.48 1. Based on market capitalization as at 26 Nov 2019, divided by last ava
Slide 30: Factors driving value expansion
Factors driving value expansion 1 Increasing portfolio companies’ value through intense support 2 Building companies for exit 3 Trendlines Labs: creating new IP and new portfolio companies 4 Opening of Agrifood Innovation Centre in Singapore (AFIC) 30
Slide 31: 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 November 2019
The Trendlines Group — Investor Presentation (November 2019) on 6ix