Elron Ventures Ltd · TASE:ELRN
Elron Ventures — Investor Presentation (April 2017)
43 slides from Elron Ventures's investor presentation, April 2017
Slide 1: Innovation – April 2017
INNOVATION April 2017
Slide 2: Disclaimer and forward-looking statements
This presentation is for information purposes only. By this presentation, Elron does not intend to solicit offers to purchase its securities and the presentation does not constitute an invitation to receive such offers. Elron may make improvements and/or changes in the features or content presented
Slide 3: Discover. Elron
DISCOVER. ELRON
Slide 4: Years of experience identifying opportunities and building technology leaders
+ WE HAVE MORE THAN YEARS EXPERIENCE IDENTIFYING OPPORTUNITIES, BUILDING TECHNOLOGY LEADERS, AND EXITING HOLDINGS + WE INVEST PRIMARILY IN EARLY STAGE COMPANIES + WE RELY ON A PROVEN STRATEGY OF HANDS-ON INVOLVEMENT IN THE DAY-TO-DAY OPERATIONS OF OUR GROUP COMPANIES THE IDEA: to bridge the gap betw
Slide 5: 2016: $40m invested in 11 group companies; $15m dividend
Exit proceeds in the last 5 years * Investments in the last 5 years* Aggregate profit in the last 5 years Dividends in the last 5 years 2016: $40m invested in 11 group companies; a $15m dividend distributed; liquid resources balance of $34m at year end; loss of $27m * Including RDC 5
Slide 6: Medical device group companies and investments
Electrical stimulation-based Rapid and automated Implant for cartilage and bone treatment for ischemic stroke microbiology laboratory system regeneration in load-bearing joints 30% 67% by Elron & RDC 35% Our investment: $29m Our investment: $64m Our investment: $12m Remote monitoring of patients wit
Slide 7: Discover. BrainsGate
DISCOVER. BRAINSGATE
Slide 8: BrainsGate – Our investment: $29M
2000 OUR INVESTMENT: 2005 $96M $29M Johnson & Johnson, Boston Scientific, Medtronic, Pitango, Cipio Partners To increase the potential number of stroke victims who receive OUR treatment from ~7% to ~80% HOLDING: Electrode used to electrically stimulate a nerve center behind the nasal cavity (the SPG
Slide 9: Interruption of blood flow to the brain
INTERRUPTION OF BLOOD FLOW TO THE BRAIN When blood flow to an area of the brain is cut off When brain cells die, functions controlled by that part of the brain (e.g. memory, muscle control) Blood flow to the brain is blocked by a Blood leaks into the brain from a blood vessel of strokes are ischemic
Slide 10: Stroke treatments: clot-busting drug, stent retriever, neurostimulation
Cells in the affected area die almost immediately, and cannot be salvaged However, surrounding the blockage are regions of viable tissue at risk – the ischemic penumbra – CLOT-BUSTING DRUG (GOLD CLOT- NEUROSTIMULATION TO STANDARD) REMOVAL WITH A STENT RETRIEVER INCREASE BLOOD FLOW Only FDA-approved
Slide 11: BrainsGate ISS implant and stimulation sessions
5 daily stimulation sessions, of 4 hours each The neurologist performs the implantation (which is brief and simple), with the aid of a navigation system GuideView SPG (sphenopalatine ganglion) = supplies parasympathetic innervation to the anterior cerebral circulation and some of the posterior c
Slide 12: Pivotal trial for U.S. marketing approval of the ISS
BRAINSGATE IS CONDUCTING AN FOR U.S. MARKETING APPROVAL OF THE ISS, ON 800-1000 PATIENTS: This slide contains forward-looking information as defined in Section 21E of the U.S. Securities Exchange Act of 1934, and in Section 32A of the Israel Securities Law, 5728-1968. See Slide 2 of this presentatio
Slide 13: Discover. Pocared
DISCOVER. POCARED
Slide 14: Pocared – Our investment: $64M
OUR 2004 INVESTMENT: 2007 $64M $107M SCP Vitalife To promote antibiotic stewardship and significantly reduce lab costs OUR by providing a method for rapid infectious diseases diagnostics HOLDING: Rapid and automated microbiology lab system for infectious diseases diagnosis 67% 14
Slide 15: Traditional microbiology testing vs. optical fingerprint technology
Since the 19th century, microbiology testing has been done by culturing In the 21st century, developed a technology for automatically bacteria in petri dishes identifying bacteria in body fluids, by identifying their optical “fingerprint” Expensive: Requires reagents and skilled lab technicians Manu
Slide 16: Pocared optical signature identification system
+ Micro-organisms are identified based on their unique optical signatures in response to different UV wavelengths + Culture-free, lab assistant operated + Gold standard accuracy + A full batch of 42 samples takes 2 hours to diagnose Filtration using “wet foam” technology to The Analyzer employs A re
Slide 17: Forward-looking information notice
This slide contains forward-looking information as defined in Section 21E of the U.S. Securities Exchange Act of 1934, and in Section 32A of the Israel Securities Law, 5728-1968. See Slide 2 of this presentation. 17
Slide 18: Discover. CartiHeal
DISCOVER. CARTIHEAL
Slide 19: CartiHeal – Our investment: $12M
OUR 2009 INVESTMENT: 2012 $12M $30M Johnson & Johnson, Accelmed To treat joint surface lesions, and to halt the progression of knee OUR osteoarthritis and delay or prevent knee replacement HOLDING: Implant for cartilage and bone regeneration in the joint 35% 19
Slide 20: Cartilage lacks healing potential; no treatments halt osteoarthritis
Cartilage does not possess spontaneous healing There are no treatments that halt the progression potential of osteoarthritis (OA) During 2004-2011 people underwent a In 2010 total knee replacements were surgical procedure addressing a cartilage defect in performed the knee Persons with knee OA spend
Slide 21: Agili-C implanted to treat knee, great toe and ankle lesions
3 weeks post-op 6 weeks post-op 12 months post-op CARTIHEAL’S AGILI-C HAS BEEN IMPLANTED IN OVER PATIENTS TO DATE TO TREAT TRAUMATIC AND DEGENERATIVE LESIONS IN THE KNEE, GREAT TOE & ANKLE The Agili-C is investigational in the U.S., and CE-marked in the EU. 21
Slide 22: Multicenter US and EU clinical trial design
Multicenter (US and EU) Will enroll up to 500 patients, depending on interim analyses (1st interim analysis: 250 patients enrolled) Primary endpoint: superiority vs. the surgical standard of care (microfracture or debridement) over a follow-up period of 2 years Intended use: treatment of joint surfa
Slide 23: Cyber 2016-2017
CYBER 2016-2017 1 2 NEW VP CYBER APPOINTED 3 5 NEW INVESTMENTS IN CYBER COMPANIES 4 SYNERGISTIC WITH RAFAEL ADVANCED DEFENSE SYSTEMS’ ACTIVITIES IN CYBER SPACE ELRON-CELLCOM COOPERATION LAUNCHED TO SEEK CYBER/IOT INVESTMENTS 23
Slide 24: Cyber group companies and investments
Protecting Cyber intelligence Real time identity Security and Automatic enterprises from platform that verification for management tools detection and cyber phishing analyzes the dark mobile apps and for hybrid data investigation of attacks web mobile websites centers security alerts 27% by RDC 22%
Slide 25: Discover. Secdo
DISCOVER. SECDO
Slide 26: Secdo – Our investment: $4M
OUR 2014 INVESTMENT: 2016 $4M $10.8M Marius Nacht (CheckPoint), Ehud (Udi) Weinstein (Anobit, Libit), Ofir Shalvi (Anobit, Libit) To help enterprise security teams cope with the mounting intensity of OUR cyberattacks by automating the most difficult and time-consuming aspects of HOLDING: incident re
Slide 27: Too many security alerts to investigate in time
There are simply too many alerts to investigate in a timely manner Finding out what actually happened is complicated and takes too long When a threat is discovered, isolating it and removing it is difficult at best HOURS ARE SPENT BY CO’S EACH OF SECURITY ALERTS ARE YEAR ANALYZING FALSE ALERTS
Slide 28: Observer, Analyzer and Responder
Security for Technology and Service Providers Always be aware Focus on alerts that matter Respond quickly & precisely Observer continuously records every Analyzer continuously & automatically Responder gives security and IT people the activity on every endpoint and server in connects the dots betwee
Slide 29: Forward-looking information notice
This slide contains forward-looking information as defined in Section 21E of the U.S. Securities Exchange Act of 1934, and in Section 32A of the Israel Securities Law, 5728-1968. See Slide 2 of this presentation. 29
Slide 30: Cloud and software group companies
SaaS tools for cloud API integration platform business management that speeds digital and optimization transformation 40% by RDC 39% by RDC Our investment: $6m Our investment: $5.2m 30
Slide 31: Discover. Cloudyn
DISCOVER. CLOUDYN
Slide 32: Cloudyn – Our investment: $6M
2011 OUR INVESTMENT: 2011 $18M $6M InfoSys, Carmel Ventures, Titanium Investments OUR To enable enterprises to fully realize their cloud potential HOLDING: SaaS tools for cloud business management 40% 32
Slide 33: Hybrid cloud managers lack visibility and cost control
OF HYBRID CLOUD MANAGERS HAVE LITTLE VISIBILITY DON’T HAVE A WAY TO DETERMINE WHAT THEY ARE PAYING FOR DON’T HAVE A WAY TO CONTROL THEIR CLOUD SPRAWL Migrating the proper Enterprises are struggling to Cost and performance workloads and building the build a single, accurate inefficiencies reduce clou
Slide 34: Cloud metrics, governance, allocation and optimization
1 2 3 4 VISUALIZE CLOUDS & ANALYZE, IDENTIFY & DYNAMIC RESOURCE FINANCIAL-DRIVEN CLOUD METRICS: GOVERN: ALLOCATION: OPTIMIZATION: cost abnormal consumption by cloud provider reserved capacity mgmt utilization spiky costs by application stack cost-driven smart-sizing consumption u
Slide 35: Selected customers
SELECTED CUSTOMERS > . RioTinto accenture ticketmaster VVE(2ITAS High performance. Delivered. | | Hewlett Packard World litte Enterprise Services/o ConocoPhillips Ca. SONY BE Microsoft technologies | orca | Westcon YWIX PSnMsUNiad ® zalando ee §=6©© OSOS amdocs NICE vodafone — discover fashion ontin
Slide 36: Discover. OpenLegacy
DISCOVER. OPENLEGACY
Slide 37: OpenLegacy – Our investment: $5.2M
OUR 2013 INVESTMENT: 2014 $5.2M $10.8M Entrepreneurs To simplify the delivery of any core application as a digital service OUR Automatic API generation for rapidly extracting the services and HOLDING: information from legacy systems, and transforming them into mobile, web, & cloud applications 39% 3
Slide 38: Legacy systems are costly to maintain and replace
Legacy systems preserve In both the public and private sectors Replacing/upgrading IT systems involves significant in the U.S. (e.g. federal agencies & and (security, compatibility, data loss) banks), maintaining legacy systems consumes three-quarters of IT budgets While replacing/upgrading le
Slide 39: OpenLegacy revolutionizes legacy modernization
Magic Quadrant for Full Life Cycle API Management OPENLEGACY REVOLUTIONIZES LEGACY MODERNIZATION, OFFERING INDEPENDENCE FROM EXPENSIVE VENDORS, AND ELIMINATING HIGH COSTS AND HIGH RISK 39
Slide 40: API sector exits: Google acquires Apigee, MuleSoft IPO
IBM and ANZ Bank MULESOFT goes GOOGLE complete integration public at $2b of 20 new APIs after 1 acquires APIGEE year, as part of $315m valuation (currently for $625m partnership traded at ~$2.8b) Sep 2016 Oct 2016 Mar 2017 Source: publicly available information 40
Slide 41: We anticipate important milestones in our companies
We anticipate important milestones in our companies, and will continue to develop our group This slide contains forward-looking information as defined in Section 21E of the U.S. Securities Exchange Act of 1934, and in Section 32A of the Israel Securities Law, 5728-1968. See Slide 2 of this presentat
Slide 42: Elron. Opportunity – Thank you
ELRON. OPPORTUNITY Thank you.
Slide 43: Holdings in companies
Holdings in companies 1 Book value at Amount invested Dec. 31, 2016 ($m) ($m) Associates and consolidated companies: Pocared (67%) 16.3 59.9 BrainsGate (30%) 3.3 29.1 CartiHeal (35%) 3.7 11.7 PLYmedia (23%) - 2.5 Others 13.3 21.5 Companies presented at fair value: Notal Vision (21%) 15.3 12.8 Others