Emv Capital Plc · LSE:EMVC
Emv Capital — NetScientific — Investor Meet Company (April 2021)
20 slides from Emv Capital's conference presentation, Apr 21, 2021
Slide 1: Investor Meets Company Presentation
Combining good science, proactive management and smart investment to deliver returns for shareholders “Investor Meets Company” Presentation 21 April 2021
Slide 2: Disclaimer
Disclaimer This presentation (and any information contained in any oral presentation accompanying it) (Presentation) has been prepared by NetScientific Plc (Company). This Presentation has not been approved by an authorised person in accordance with Section 21 of the Financial Services and Markets A
Slide 3: Agenda
Agenda Presentation • Introduction to NetScientific (NSCI) • New Team 2020 • History • Strategy • Key Achievements and KPIs • Way Forward • Summary Followed by Questions & Answers 3
Slide 4: NetScientific
NetScientific NetScientific Plc is an active holding company. It invests in, develops, commercialises and realises returns from life sciences/healthcare, sustainability and technology companies The Group leverages trans-Atlantic relationships and global opportunities to deliver shareholder value. 4
Slide 5: New Team in 2020: Effective Corporate Governance
New Team in 2020 Effective Corporate Governance John Clarkson, Executive Chairman Prof. Stephen Smith, Non-Executive Director, • ex-PWC Legacy Partner in Charge, Developing Services Chair of Remuneration and Nomination Committees and Division (incl. strategy & performance improvement) Advisory Group
Slide 6: History
History Approach • NetScientific Plc admitted to AIM 2013, backed by Woodford • Trans-Atlantic, Healthcare IP • Logical initial approach • Passive, inconsistent and high costs • Until Q1 2020 was in run-down mode • New team 2020 The Company had underperformed... The market message was clear — change
Slide 7: Strategy & lessons learned
Strategy& lessons learned NSCI lessons learned 2020 Strategic review and actions • Fundamental management change Good Science • Commercial development options & risk profile • IP and target markets • Impact of COVID pandemic, exploit new demands/markets • Capital efficiency: Funding needs, leveragin
Slide 8: 2020 Strategy Implementation
2020 Strategy Implementation Summer 2020 investor presentations and shareholder circular commitments: • Turnaround: Focus on execution, controls & scalable processes • Proactive & performance driven management of companies to maximise returns • Develop revenue streams • Judicious direct investment…
Slide 9: Changes Implemented in 2020
Changes Implemented in 2020 Immediate stabilisation, enhanced position… • PDS Biotechnology Corp: c.£1m anchor of 2 NASDAQ placements totalling c.$32m; new board seat; share price rise from $1.30 Feb 20 and $2.75 in Aug 20 to c.$5.00 now. DELIVERED – Fair Value £4.9m • ProAxsis: Took control of comp
Slide 10: Transformational transaction
Transformational transaction Shareholder Circular detailing: • New strategic plan • Capital reorganisation • Whitewash of concert parties • All paper acquisition of EMVC • Positioning for further growth Approved by shareholders at EGM 24 Aug 20 Oversubscribed £2.3m placement New & supportive investo
Slide 11: Expanded investment and support capability
Expanded investment and support capability “BACKING AMBITION, INVESTING IN EXECUTION” Exits and NetScientific gained: Liquidity Events Late Seed Pre-Series A Series A Series B+ • Capability to fund across company’s life cycle • Increased team/deal execution capacity • Transaction advisory fees & car
Slide 12: Portfolio doubled to 17 companies
Portfolio doubled to 17 companies + A robust balanced portfolio with a consistent focus, logical growth paths and risk mitigation *Disclaimer: Portfolio comprises of equity investments and exposure to companies through carried interest, realisable on exit 12
Slide 13: Portfolio - Progress Maintained
Portfolio - Progress Maintained Proactive management, with commercial discipline and appropriate risk management, to drive results, protect and enhance position in portfolio companies: • ProAxsis: growth actions and plans, e.g. new licence University of Geneva; US distribution agreement • Glycotest:
Slide 14: Highlights and KPIs of 2020
Highlights and KPIs of 2020 Share price has increased from the relative low point of 12.5p in early 2020 to a year average of c. 55p As part of turnaround, halving of previous year’s losses of £4.9m down to £2.3m in 2020 14
Slide 15: Highlights and KPIs
Highlights and KPIs NetScientific now has subsidiaries, directly owned stakes and interest through Capital Under Advisory (benefitting from carried interest/shared profit) Increase in fair value of direct owned stake by c. 80% from £11.8m to £21.2m with further growth anticipated Anticipated increas
Slide 16: Business and Financial Plan
Business and Financial Plan • Stronger financial base with new/recurring income streams • Capital-light model, with judicious direct and syndicated investments, and utilise soft funding (grants, JDAs) to produce enhanced returns • Continue to establish the necessary resources, platform and infrastru
Slide 17: Way Forward
Way Forward • Utilise and leverage underlying asset base, PLC Brand and harness group synergies • Focus on life sciences, sustainability and technology • Structured robust evaluation, projections and performance driven plans with focus on value inflection points, investment returns exit opportunitie
Slide 18: Summary - Q&A
Summary - Q&A There are Risks and Challenges, but • Right asset base, right space, right time to transform the business, create and grow shareholder value • Complete turnaround and alignment of underlying (and increasing) asset value with market cap • Progressive development of portfolio and new gro
Slide 19: Appendices
Appendices 19
Slide 20: Portfolio Summary
Portfolio Summary Portfolio companies Sector and description (further Fully diluted Group Consolidated Fair Value of stake Capital Under Advisory (At Cost to detail set out below) Interest % Statement of Third Party) Financial Position value 31 Dec 2020 31 Dec 2019 31 Dec 2020 31 Dec 2019 Subsidiari