Innventure, Inc. · NASDAQ:INV
Innventure — Investor Day (April 2024)
76 slides from Innventure's investor day presentation, Apr 22, 2024
Slide 1: Analyst Day
Innventure Analyst Day April 22, 2024
Slide 2: Introduction
Introduction Lucas Harper Chief Investment Officer
Slide 3: Disclaimer
3 Disclaimer This presentation (the “Presentation”) has been prepared by Innventure, LLC (“Innventure” or the “Company”) and Learn CW Investment Corporation (“Learn CW” or the “SPAC”) in order to assist interested parties in conducting their own evaluation of the potential business combination of th
Slide 4: Disclaimer
4 Disclaimer • expectations regarding Innventure’s and the Innventure Companies’ strategies and future financial performance, including their future business plans, expansion and acquisition plans or objectives, prospective performance and opportunities and competitors, revenues, products and servic
Slide 5: Disclaimer
5 Disclaimer • the possibility that Learn CW and/or Innventure may be adversely affected by other economic, business, and/or competitive factors; • the potential characterization of Innventure as an investment company subject to the Investment Company Act of 1940; • operational risk; and • the risk
Slide 6: Disclaimer
6 Disclaimer Trademarks In addition to trademarks, service marks, trade names, copyrights and logos of Innventure and its subsidiaries contained herein, this presentation contains trademarks, service marks, trade names, copyrights and logos of other companies, which are the property of their respect
Slide 7: Innventure Analyst Day 2024 Agenda
7 Innventure Analyst Day 2024 Agenda 9:00am Welcome & Opening remarks Lucas Harper, Chief Investment Officer 9:05am What is Innventure? Bill Haskell, Chief Executive Officer 9:30am Strategic Partnerships Tom Cripe, Head of Strategic Partnerships 9:45am DownSelect® Colin Scott, Vice President, Head o
Slide 8: Leadership – Executive Committee
8 Leadership – Executive Committee Bill Haskell – Chief Executive Officer David Yablunosky – Chief Financial Officer Bill serves as Chief Executive Officer for Innventure. Previously, he was a co-founder and President of XL TechGroup that David’s finance career spans over 30+ years with large public
Slide 9: Leadership
9 Leadership Bill Grieco – Chief Technology Officer Lucas Harper, CAIA – Chief Investment Officer, Investment Committee Bill is an entrepreneur, innovator, and business leader who has spent the last 25 years leading R&D and Lucas is a member of the Investment Committee and serves as Chief Investment
Slide 10: Innventure Introduction
10 Innventure Introduction Innventure founds, funds, and operates companies around transformative, sustainable technology solutions acquired or licensed from Multinational Corporations (MNCs). 1 Our business model is focused on founding and Closed Loop Model building high growth ventures in partners
Slide 11: Company Overview
Company Overview Bill Haskell Chief Executive Officer
Slide 12: What is Innventure’s Core Mission?
What is Innventure’s Core Mission? We intend to transform how multinational corporations monetize their best technologies
Slide 13: Successful Track Record of Company Formation
13 Successful Track Record of Company Formation Innventure has launched three companies since inception 2015 2018 2022 2024+ Innventure (1) New Company #4, #5, . . . Company NASDAQ: PCT Polypropylene Liquids Packaging Thermal Management Technology Technology #4, #5, . . . Recycling Technology Techno
Slide 14: Innventure – Achieving Our Core Mission
14 Innventure – Achieving Our Core Mission Key Risks in Company Creation 1 Macro/Market Level 2 Technology Innventure’s business model was designed to mitigate five of the key 3 Adoption risks historically inherent in high- growth venture creation 4 Funding 5 Operational Execution
Slide 15: The Closed Loop Model
15 The Closed Loop Model Systematic mitigation of risks inherent in creating and growing high growth, disruptive companies 1 2 Institutional Access Advantage Data Set Institutional Data Set Access to technology that is available Deep MNC market knowledge related to Access only through MNCs the unmet
Slide 16: Innventure’s Economic Value Creation Playbook
16 Innventure’s Economic Value Creation Playbook Process for systematically scaling our businesses Evergreen Consolidated model is expected to allow cash flows from operations and monetizations to fund Commercialize Innventure going forward MNC becomes early adopter of technology solution and/or pro
Slide 17: The Innventure Strike Zone
17 The Innventure Strike Zone 1 Unmet Customer Need 2 Proven Industrial Technology(1) Leverage MNC data and built-in Commercial-grade technology adoption to confirm market demand solutions that enable significant, and identify early customers, additional quantifiable value mitigating risk for go-to-
Slide 18: Our View of What Differentiates Innventure's Model
18 Our View of What Differentiates Innventure's Model Traditional Venture Capital MNCs Private Equity Owner Operators X X ✔ ✔ ✔ ✔ Liquidity for Investors X X ✔ ✔ Ability to Redeploy Cash X X Flow Portfolio Expected Low Medium Low High Success Rate Early and growth stage, Operational Mature products
Slide 19: Value Creation in Action
19 Value Creation in Action Systematic approach to found, fund, and operate companies with a focus on transformative, sustainable technology solutions acquired or licensed from MNCs Significant Acquire or license a proven technology(1) from MNC that addresses an monetary and time expected unmet need
Slide 20: Benefits to Multinational Companies
20 Benefits to Multinational Companies MNCs invest hundreds of billions of dollars annually in Research & Development – much of that is not commercialized The opportunity: But they only MNCs spend billions Systematically acquire or commercialize a small MNCs invest in R&D to developing new license t
Slide 21: Innventure’s Disruptive Conglomerate Model v. Traditional Venture Model
21 Innventure’s Disruptive Conglomerate Model v. Traditional Venture Model Traditional Venture Capital Company Technology Creates a new technology and takes all risk that it will Innventure starts with a proven technology(1) developed by ultimately work the MNC Funding Profile Funds riskiest portion
Slide 22: Driving Success Through Comprehensive Risk Mitigation
22 Driving Success Through Comprehensive Risk Mitigation Risk Considerations Innventure Mitigation Strategies Leveraging MNC proprietary market knowledge of unmet need, DownSelect assessment conducts Macro/Market Level deep diligence on the technology solution and the market factors that could lead
Slide 23: Timeline for Innventure Companies
23 Timeline for Innventure Companies Repeatable methodology and track record of building highly valued companies within several years of launch Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Technology Ironton Plant (1) transfer produces first pellets Ownership: <2% P&G Patents filed Secured feeds
Slide 24: Strategic Partnerships
Strategic Partnerships Tom Cripe Head of Strategic Partnerships
Slide 25: Perfecting Innventure’s Business Model
25 Perfecting Innventure’s Business Model Building a stronger innovation model for disruptive technologies by marrying together the best of multinational corporations and the entrepreneurial world Multinational Entrepreneurs / Corporations Start-ups Market Knowledge Speed & Agility in and Data Opera
Slide 26: Multinational Corporation Decision Making Process
26 Multinational Corporation Decision Making Process Corporations unlock material economic value when partnering with Innventure Multinational Corporations No solution available to Desired shipping cost Anticipated the approach of Why invent the technology? meet desire to increase use of savings and
Slide 27: Robust Pipeline of Multinational Corporation Relationships
27 Robust Pipeline of Multinational Corporation Relationships Innventure Value Creation Active Multinational Pipeline Growth (1) Multinational Corporation 80+% Growth 18 ACTIVE MNC PROSPECTS Unmet Market Need +9 MNCs SHARING OPPORTUNITIES 29 20 Technology Solution 16 +2 ONGOING MNC PARTNERS Dec 21 D
Slide 28: DownSelect®
DownSelect® Colin Scott Head of DownSelect®
Slide 29: What is DownSelect®?
What is DownSelect®? Rigorous analysis to generate outsized risk-adjusted returns through disruptive company formation
Slide 30: Innventure’s DownSelect® Evaluation Analysis
30 Innventure’s DownSelect® Evaluation Analysis 1 DownSelect® Overview 2 What Makes a Good Opportunity for DownSelect®? 3 DownSelect® Case Studies 4 Historical Opportunity Pipeline
Slide 31: Innventure’s DownSelect® Phases
31 Innventure’s DownSelect® Phases Each phase in the DownSelect® analysis seeks to best assess revenue opportunity, initial and scaled unit economics, capital requirements and risk. The ultimate output is a potential business launch that has met or exceeded a rigorous set of checks and balances. PHA
Slide 32: DownSelect® Quality Scoring
32 DownSelect® Quality Scoring Helps prioritize evaluation and development of opportunities by integrating information in an iterative loop across five key interconnected factors 1. Market 2. Value Comprehensive assessment of market size, Quantification of the immediate, new competitive dynamics and
Slide 33: Drivers of a Strong Innventure Opportunity
33 Drivers of a Strong Innventure Opportunity Technology constantly changes business across a diverse set of use-cases. Innventure has extensive experience screening technologies for commercialization to meet expected unmet market needs. Key market drivers and markets in need of a technology solutio
Slide 34: Sustainable Solutions Drive Economic Value
34 Sustainable Solutions Drive Economic Value Innventure has built companies that unlock long-term economic value where secular trends required sustainable technology solutions to address unmet market needs - NewCos design their own sustainability programs to address specific business needs and opti
Slide 35: DownSelect® Initial Phases
35 DownSelect® Initial Phases Data-intensive diligence and standardized evaluation steps make the initial phases of DownSelect® highly scalable. Collaboration with a growing network of MNCs provides initial DownSelect® phases with truly unique market knowledge. PHASE 1 PHASE 2 PHASE 3 PHASE 4 Opport
Slide 36: DownSelect® Decision and Formation Phases
36 DownSelect® Decision and Formation Phases Each phase in the DownSelect® analysis seeks to best assess revenue opportunity, initial and scaled unit economics, capital requirements and risk. The ultimate output is a potential business launch that has met or exceeded a rigorous set of checks and bal
Slide 37: DownSelect® – Risk Avoidance Discipline
37 DownSelect® – Risk Avoidance Discipline Rigorous evaluation of spectrum technology solution led to DownSelect® rejection PHASE 1 PHASE 2 PHASE 3 PHASE 4 Opportunity Critical Factor Comprehensive Strategy & Screen Assessment Quantification Formation Market • Market viability supported by broad use
Slide 38: The Innventure Strike Zone
38 The Innventure Strike Zone 1 Unmet Customer Need 2 Proven Industrial Technology(1) Leverage MNC data and built-in Commercial-grade technology adoption to confirm market demand solutions that enable significant, and identify early customers, additional quantifiable value mitigating risk for go-to-
Slide 39: Innventure’s Historical DownSelect® Pipeline
39 Innventure’s Historical DownSelect® Pipeline DownSelect® arms Innventure with a scalable ability to evaluate a significant number of opportunities at once. A wide opportunity set allows for very high capital and return discipline. Opportunity Pipeline Since Inception Opportunities Evaluated Since
Slide 40: Break
Innventure Break
Slide 41: Revolutionizing Liquid Packaging
Revolutionizing Liquid Packaging AeroFlexx Investor Presentation | Private and Confidential 41
Slide 42: Value Proposition Transforming the Package Industry
Value Proposition Transforming the Package Industry AeroFlexx is a sustainable liquid package designed to leverage the best attributes of both rigid and flexible packaging to deliver a highly preferred consumer experience, unlocking economic value for the MNCs while offering significant sustainabili
Slide 43: Seasoned Management Team
Seasoned Management Team Andrew Meyer – Chief Executive Officer Cedric D’Souza – Chief Technology Officer Kevin Green – VP, Commercial Andrew is the CEO of AeroFlexx and Serial CEO for Innventure. He Cedric is the CTO of AeroFlexx and an entrepreneurial leader with an Matt Kevin has over 25 years of
Slide 44: Key Milestones
Key Milestones Recycle Ready Announced Joint Partnership with Achieved BRC Global Material Patent Venture with Fameccanica Standard (BRCGS) Dynapack Asia 2018 2024 First commercial converter Launch in February Achieved Interseroh and filler line installed, Second converter line 2018 by Innventure “M
Slide 45: Substantial Addressable Market
Substantial Addressable Market AeroFlexx technology has an estimated $400 billion addressable market across several market categories: Personal Care Household Pet Care Food Industrial Products AeroFlexx Presentation | Innventure Analyst Day 45
Slide 46: Proven Business Model
Proven Business Model Centralized Manufacturing with Strategically Located Filling Operations Fillers owned Fillers owned by by the brand co-manufacturers selling flat selling flat Paks Paks AFX in-house selling selling AFX partnered fillers filled filled co-manufacturers Paks Paks Converters owned
Slide 47: Growth Roadmap
Growth Roadmap AeroFlexx expects to expand its global footprint with equipment being deployed across 3 different regions CURRENT OPERATIONS EXPANSION PLANS Deployment locations based on management assumptions and are not guaranteed. AeroFlexx Presentation | Innventure Analyst Day 47
Slide 48: Delivering Increased Sustainability
Delivering Increased Sustainability VIRGIN PLASTIC PACKAGE CURBSIDE LIFE CYCLE AVOIDANCE CIRCULARITY RECYCLABILITY ANALYSIS Significant source reduction by Package can incorporate up to Curbside recyclable where all By eliminating excess packaging material using up to 85% less plastic versus 50% rec
Slide 49: Substantiated by Compelling Data
Substantiated by Compelling Data CONCEPT TESTING PRODUCT IN-USE TESTING REAL-TIME MARKET FEEDBACK AeroFlexx concepts 56% ~60% Average 4.3 star rating on in both dish and body Preference Preference Amazon with pilot launches for AeroFlexx for AeroFlexx scored in top 5 in Dish Soap in Body Wash percen
Slide 50: Unlocking Significant Brand Value
Unlocking Significant Brand Value • REDUCES SOURCING COMPLEXITY AND TRANSPORTATION COST • LOWERS WAREHOUSE AND INVENTORY COST REQUIREMENTS • ISTA-6 AMAZON APPROVED • OMNI-CHANNEL READY OFF THE FILLING LINE • NEW SIZE AND SHAPE DEVELOPMENT EFFICIENCY • TAMPER-PROOF FOR PRODUCT SAFETY AeroFlexx is bre
Slide 51: Accelsius
Accelsius We Bring the Cool Josh Claman Chief Executive Officer
Slide 52: The Need for Liquid Cooling Continues to Accelerate
THE NEED FOR LIQUID COOLING CONTINUES TO ACCELERATE Data Center Power Capacity (GW) 140 GW Power Capacity 120 100 80 60 40 20 - DC Power Capacity (IT Load) for all other applications DC Power Capacity (IT Load) for AI CPU wattages increasing GPU wattages high AI adopting moving from exponentially an
Slide 53: Hype and Concern – Both Tailwinds for Accelsius
HYPE AND CONCERN – BOTH TAILWINDS FOR ACCELSIUS Liquid Cooling expected to reach USD $5 Billion by 2027. Data Center Knowledge
Slide 54: Transition to Liquid Cooling is Accelerating
TRANSITION TO LIQUID COOLING IS ACCELERATING The transition to liquid cooling continues to accelerate, driven by AI adoption. Liquid Cooling expected to reach $7.8 billion by 2028 from $2.6 billion in 2022. Source: Data Center Knowledge Source: https://www.marketsandmarkets.com/Market-Reports/data-c
Slide 55: Accelsius at a Glance
ACCELSIUS AT A GLANCE What is Accelsius? A two-phase, direct-to-chip liquid cooling technology designed for data centers. The NeuCoolTM system delivers best-in-class thermal performance, advanced mission-critical design, North American manufacturing & supply chain, and enterprise-grade lifecycle ser
Slide 56: Seasoned Leadership
SEASONED LEADERSHIP Extensive Data Center Experience Josh Claman, Chief Executive Officer Josh Claman is a seasoned global executive. His career, tracking the evolution of data center technology, has spanned over 30 years, through which he has overseen transitions to new approaches and architectures
Slide 57: NeuCool System Flow
NEUCOOL SYSTEM FLOW 2-Phase Flow Cycle Manifold Condenser Vapor Vaporator Tank Manifold Pump Liquid HP
Slide 58: NeuCool System
tee NEUCOOL SYSTEM
Slide 59: NeuCool Metrics and Benefits
NEUCOOL METRICS AND BENEFITS ZERO 1,500W+ Water Consumed NEUCOOL Vaporators can 59% cool the most powerful chips 1-3 Years 100 kW+ 1.08 Payback from Per rack cooling Targeted PUE savings capability TCO SAVINGS ENERGY SAVINGS REDUCED CO2 EMISSIONS IT SPACE SAVINGS <1 <0.02 °C/W Global Warming Potenti
Slide 60: 2-Phase Direct to Chip is the Safest + Simplest Choice
2-PHASE DIRECT TO CHIP IS THE SAFEST + SIMPLEST CHOICE IMMERSION COOLING Unfamiliar form factor VS DIRECT-TO-CHIP COOLING Familiar form factor High up-front costs Lower up-front costs Requires infrastructure changes Operational serviceability Specialized training & services required Well suited to h
Slide 61: Accelsius NeuCool: The Best Overall Thermal Performance
ACCELSIUS NEUCOOL: THE BEST OVERALL THERMAL PERFORMANCE Greatest Lifetime Value Air (1U) 1P Immersion 2P Immersion 1P Direct-to-Chip 2P Direct-to-Chip / NeuCool Max TDP Cooled with 165 watts 190 watts 415 watts 700 watts (@2.2 LPM) 1000 watts (@.5 LPM) 30°C Facility Water and Below Thermal Resistanc
Slide 62: Covering All Required Dimensions
COVERING ALL REQUIRED DIMENSIONS 1. DENSIFICATION 2. EFFICIENCY 3. COMPATABILITY 4. SUSTAINABILITY • More compute power • Fewer components, • Flexible configurations • Denser processing and and revenue per better reliability. fit standard racks and more effective passive area/volume. • Dramatically
Slide 63: Making Quick Traction in the Market
MAKING QUICK TRACTION IN THE MARKET Signed Integrators and Service Providers Servers Tested and Characterized Liquid Cooling expected to reach USD $5 Billion by 2027. Strategic Relationships DataExpanding VAR Agreements Center Knowledge
Slide 64: Financial Model & Reporting
Financial Model & Reporting Dave Yablunosky Chief Financial Officer
Slide 65: How Will Innventure Report?
65 How Will Innventure Report? Committed to investor transparency as Innventure Companies scale Key Performance Indicator Quantitative disclosure Qualitative detail Revenue(1) Consolidated revenue Backlog, orders, etc. EBITDA(2) Consolidated expense detail Margin progression Capital expenditure Cons
Slide 66: Key Tenets to Innventure’s Expected Financial Profile
66 Key Tenets to Innventure’s Expected Financial Profile A model of launching high-growth ventures with strong profitability metrics and substantial addressable markets 1 Rapid Revenue Growth 2 Visible Path to Profitability 3 Disciplined Capital Expenditures
Slide 67: Innventure’s Capital Allocation Strategy
67 Innventure’s Capital Allocation Strategy Compounding cash flows expand Innventure's value creation options Excess Free Cash Flow • Share repurchase • Accretive M&A Self Fund NewCo • Initial investment range of $25 to $50 million allows for Disciplined Scale multiple potential launches annually •
Slide 68: Value Creation
Value Creation Lucas Harper Chief Investment Officer
Slide 69: Illustrative Innventure Value Creation Model
69 Illustrative Innventure Value Creation Model Low-cost base + de-risked start-up investment + rapid time to market = potential high returns on invested capital Years 0-2 Years 3-5 Years 5+ • Investment • Investment • Investment • Low IP acquisition costs • Capital expenditure plateaus • Investment
Slide 70: Evolution of Ownership Structure
70 Evolution of Ownership Structure Innventure intends create additional value for shareholders by maintaining majority control of future NewCos 29.7%(2) 66.5%(3) 70%+ 70%+ 70%+ <2%(1) (2) Company 4 Company 5 Company 6+ Year Founded 2015 2018 2022 [~2024] [~2025] [~2026]+ Note: 1. PureCycle Technolo
Slide 71: Valuation
Valuation Roland Austrup Capital Markets
Slide 72: Transaction Overview
72 Transaction Overview(1) Sources & Uses Pro Forma Ownership Pro Forma Valuation Ownership Breakdown % ($ in Millions, except per share values) Sources ($ mm) at Close Shares Ownership SPAC Cash in Trust(2) $101 Innventure Unitholders(3) (5) 37.9 73% Pro Forma Shares Outstanding (2)(3)(4)(5)(6) 51.
Slide 73: Public Market View of Holding Company Platforms
73 Public Market View of Holding Company Platforms Public markets have assigned a premium valuation for holding companies that invest in strong, market-leading and transformative operating companies Illustrative Trading Multiples Comparison – $ROP & $BRK vs. Industries of Underlying Portfolio Roper
Slide 74: Multi-Modal Value Creation
74 Multi-Modal Value Creation Innventure’s systematic creation of high-growth businesses aims to create a laddered portfolio of disruptive companies Conceptual Perpetual High Growth Potential Innventure Portfolio Value Creation VALUE NewCo. 1 NewCo. N NewCo. N+1 NewCo. N+2 TIME
Slide 75: Q&A
Innventure Q&A
Slide 76: The Science of Company Creation
Innventu THE SCIENCE OF COMPANY CREATION