Ip Group Plc · LSE:IPO
Ip — Investor Presentation (May 2017)
27 slides from Ip's investor presentation, May 2017
Slide 1: Creating an international leadership position
Creating an international leadership position May 2017
Slide 2: Disclaimer
Disclaimer NOT FOR DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY, IN The Company expressly disclaims any and all liability that may be based on any Offers of Investments, Division 1 – Shares and Debentures; (b) in reliance of section OR INTO THE UNITED STATES OF AMERICA OTHER THAN TO information c
Slide 3: The opportunity
1 The opportunity
Slide 4: Creating an international leadership position
Creating an international leadership position Established position with leading research institutions Growing into a significant market opportunity Today 1 2 3 Combination with Touchstone Entering Australasia Equity raise Innovations plc ("Touchstone") Progressing a potential all-share 20-year agr
Slide 5: An enlarged global business
An enlarged global business Indicative combined business including equity raise of £200m and (Non-market data as at 31 December 2016) (Non-market data as at 31 July 2016) Australasia launch 18+ UK 16 UK2 Partners 2+ UK 5 US 5 US3 9 Australasia Employees 76 68 144 Market Cap1 £808m £475m £1,483m4 Gro
Slide 6: A larger, more diversified combined portfolio of companies
A larger, more diversified combined portfolio of companies Top 20 combined companies by historic fair value, £m1 (All fair values by reference to historic audited NAV) 246 Total portfolio value: £958m1 9% Total of top 20: £620m1 / 65% IP Group top 10 12% companies 10% 69% IP Group Touchstone Healthc
Slide 7: Combination with Touchstone – transaction overview
Combination with Touchstone – transaction overview Summary of key terms Timetable considerations On 23rd May 2017 we announced that Structure: All-share we are considering making an offer for an all-share combination with Exchange ratio: 2.1491 Touchstone We are continuing discussions with Impli
Slide 8: Deploying £200m to support the Group's strategy
Deploying £200m to support the Group’s strategy (Australasia) (Including Touchstone) Support mature Continue to scale Pursue emerging UK position US business opportunities £170m £30m allocation Capital Continued growth of UK Continued growth of Launch and develop portfolio, including potential
Slide 9: Entering Australasia
2 Entering Australasia Agreements with the Go9 universities in Australia and New Zealand 8 STRICTLY PRIVATE AND CONFIDENTIAL
Slide 10: Global research landscape: output from the top universities
Global research landscape: output from the top 200 universities Share of Top Research1 by country 43.8% Current IP Group geographies Entering Australasia Initial engagement 11.8% 9.5% 5.3% 4.4% 4.3% 4.0% 4.1% 2.7% 1.7% 1.7% 1.5% 1.4% 1.4% 1.3% 1.3% Germany Switzerland Italy Other Canada Japan Austra
Slide 11: Increasing our access to top research by over 50%
Increasing our access to top research by over 50% IP Group’ access to the global share of Top Research1 4 2.0% 3 4.0% 16.9% 10.9% Current 2 Australasia 3 Touchstone 4 Total 31% preferred access 49% preferred access Note: 1) “Top Research” classified as the top 10% of publications cited globally. Inc
Slide 12: Executing a global growth strategy
Executing a global growth strategy Established platform Combined Existing with since 2001 Touchstone Singapore: engaging with Partner research share 5.9% 7.8%4 potential research and funding partners; evaluating potential # partners2 16 184 market entry Focused growth # portfolio 795 1596 China:
Slide 13: Partnership agreements with all Go9 universities
Partnership agreements with all Go9 universities The Go91 spends over AU$6.0bn (£3.4bn2) annually on research Perth Adelaide Melbourne IP Group has entered into 20-year commercialisation agreements with each of the Go9 Universities3,4 Melbourne Canberra Sydney The Group has committed to invest
Slide 14: Creating an international leadership position
Creating an international leadership position Global leader in IP commercialisation undergoing a period of significant international scale up: • Agreements with the Go9 universities in Australia and New Zealand • Support from 74.3% of Touchstone shareholders for potential all-share combination Globa
Slide 15: Equity raise transaction structure and timetable
Equity raise transaction structure and timetable Capital raising of up to £200m: ─ £135m firm placing Offer structure ─ £65m placing, open offer and offer for subscription ─ Ability to increase the size of the issue by up to a third Price 140p per IP Group share Timetable Announcement 23rd May
Slide 16: IP Group overview
2 IP Group overview
Slide 17: The increasing global need for science & technology
The increasing global need for science & technology The fourth industrial Disruptive innovation Traditional venture revolution is scientific starts at Universities underserves the market Liquid Crystal Display Artificial hips Ultrasound The Jet Engine Bionic ear Polio vaccine Examples of disruption:
Slide 18: Commercialising start-ups requires a different model
Commercialising start-ups requires a different model Scientific, Long-term Broad network commercial & Patient university of aligned investment approach partnerships co-investors expertise Access to the Institutions world’s top Long-term Family offices research capital Funds Ability to identify and
Slide 19: Business building support based on 15 years of know-how
Business building support based on 15 years of know-how Case study: Xeros Technology Group Plc (AIM: XSG) Recruited NED CTO AIM training £10m IPO CEO round Recruited training Recruited £3.5m Chair £0.5m CEO/ round Incorporation round Chair Initial review 2004 2005 2006 2007 2008 2009 2010 2011 2012
Slide 20: Current portfolio
Current portfolio Portfolio by # companies1 Top 10 portfolio companies1 (Historic fair value, £m2) 246 Top 10 portfolio companies represent Biotech c. 68% of total group portfolio value 12 Healthcare 27 Cleantech 90 20 29 23 22 21 20 18 14 13 11 Technology 31 Avacta (Q) Diurnal (Q) hVivo (Q) Mirriad
Slide 21: Oxford Nanopore Technologies Limited
Oxford Nanopore Technologies Limited The analysis of any living thing, by any person, in any environment Historic fair value of holding at 31 December 2016: £246m / c.20% stake Founded in 2005 based on science of Prof. Hagan Bayley, Oxford University In Dec. 2016 completed £100m fund raising l
Slide 22: Selected portfolio companies by sector
Selected portfolio companies by sector “Quantum cardiac imaging “Optimising the human “Native in-video “Human models of viral technology” experience of networked advertising allowing post- disease” applications” production ad placement” “Improving the safety “Contactless haptic “Regenerative dCELL®
Slide 23: Portfolio growth since IPO despite market fluctuations
Portfolio growth since IPO despite market fluctuations Cost FV increase Portfolio Value Proceeds Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Metric % Gross IRR1 since inception c.19% Note: Sourced from IP Group financial statements and management
Slide 24: Contributing to increase in historic 'hard' NAV per share
Contributing to increase in historic ‘hard’ NAV2 per share Share price (year end) Historic "Hard" NAV per share 2 179p 125p 55p3 22p Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Metric % Gross IRR1 since inception c.19% Note: Sourced from IP Group
Slide 25: Appendices
Appendices
Slide 26: Appendix I – IP Group Board of Directors
Appendix I – IP Group Board of Directors Alan Aubrey - Chief Executive Officer Mike Humphrey – Non-executive Chairman Corporate finance background (partner KPMG) Deep expertise of building technology businesses Co-founder Techtran Group Ltd; bought by IP Group Former Group CEO of Croda International
Slide 27: Appendix II – IP Group Senior Management Team
Appendix II – IP Group Senior Management Team Dr Mark Warne – Head, Healthcare Dr Mark Reilly – Head, Technology Previously at pre-clinical drug discovery CRO, Exelgen, where he was managing director Founder and Managing Director of Remarkable Innovation PhD in Computational Chemistry, an MSc in Col