Imperial Innovations

The business of innovation

Innovations bridges the gap between scientific research

and successful commercialisation

Overview of Innovations’ model

Scientific research Incubation Commercialisation

• Provides IP protection, licensing and business building services for Imperial College London

• Very early access to research outputs

• Creates, builds and invests in pioneering technology opportunities and companies based on IP from

– Cambridge– Oxford– UCL– Imperial College London

• Provides growth capital

• Provides commercialisation expertise and continuum of support to portfolio companies

• Investments not constrained by capital required or artificial exit timetable

Innovations Track Record

~650patents filed

>100proof of concept projects funded

150licences under management

£143.1minvested in portfolio

£206mraised for investment

Since 2006:

£188.2mcurrent investment portfolio value

£25mRealisations since IPO

Management skills and expertise

Highly qualified team with expertise in relevant fields

100% 48%52%

Commercial teamand executive directors

Innovation science credentials

Combination of technical and commercial skills

Eight investment directors, with ca. 80 years combined experience

Entrepreneurial and investment experienceNigel PitchfordChief Investment Officer

Russ CummingsChief Executive Officer

• Joined as CIO in 2006, appointed CEO in July 2013• Responsible for building portfolio and Ventures team• Previously Director at SEP and 3i• Prior to Innovations, track record includes Oxford Asymmetry,

Zeus Technology, Searchspace and Queensgate Instruments, all >$100m spinouts from the 4U

• BSc in Mechanical Engineering from Imperial College London

• Joined Imperial Innovations in 2012• Previously Partner at DFJ Esprit; prior to that spent 12 years

at 3i, becoming a Partner in 2006, leading venture healthcare activities across Europe and the US.

• Responsible for leading investment rounds into Domantis (sold to GSK for $454m), Apatech (sold to Baxter for $330m), Arakis (sold to Sosei Pharma for $187m).

• Studied chemistry at the University of Oxford• PhD from University of Durham and an MBA from Warwick.

Focused on building portfolio value through management, not just scale

Management Team

Tony HicksonManaging DirectorTechnology Transfer

• Joined Imperial Innovations in 2002• Over 20 years commercial IP & licensing experience in

bioscience companies including Wellcome Group R&D, Murex Biotech, Abbott Laboratories and Kalibrant

• Held board positions on start-ups including Emcision, Polytherics, Acublate and RespiVert and is Chair of the IP Board for the European Climate KIC

• Holds an MBA and is a Chartered Licensing Professional

Anjum AhmadTreasury & Finance Director

• Joined Imperial Innovations in 2003• Prior to joining Innovations was finance director at a VC-

backed start-up having previously held roles at GSK, BBC Worldwide and the British Red Cross.

• Fellow of the Association of Chartered Certified Accountants, holds an MBA and has Treasury qualifications

Degreeor Masters PhD

MBA

Linked to one of the four universities:• Cambridge, Oxford, UCL and Imperial College London

Large market opportunity (>£1bn)

Strength and depth of research expertise

Differentiated and protectable intellectual property

Team – experienced commercial lead with industry experience alongside world-class science

Three different sources for investments:• Spinout based on university IP• Entrepreneur-in-residence / Venture Partner market-led opportunity

partnered with one of the four universities• Early-stage existing company working closely with one of the four

universities and involving academic advisers

4U

IP

Investment Criteria

More Than Just Investment

Funding

Syndicates

Management

Validation

• Providing finance alone or with partner investors with shared objectives.

• Businesses have the scope to grow and we invest efficiently

• Strategic partnerships with industry to reduce time to market,reduce risk and access industrial expertise

• Appointing skilled management teams into key positions in our portfolio companies according to their stage of development

• Endorsement from third parties e.g. FDA approval, CE marking.

• Evidence of real progress towards commercialisation

Innovations is an active partner to all its portfolio companies, supporting and adding value

IP from Leading Research Universities

25%of UK

£1.3bn research spend

Four universities account for

• Strongest research concentration in Europe

• Global top university rankings

2013

Current QS World University Rankings

Source: http://www.topuniversities.com/university-rankings/world-university-rankings/2013

Investment approach

Continuity of funding with deep knowledge of assets

£25k-1m £1m-5m £5m-25m+

Seed investment Stake building

PO

TE

NT

IAL

OP

PO

RT

UN

ITY

CO

MM

ER

CIA

LIS

AT

ION

EX

IT

Understand the opportunity and

market

Exit at most opportune time

Build organisational

strength

Develop relevant partnerships

‘Live with’ the technology

Accelerated investment in best

opportunities

Seat on Board

Portfolio Overview

Chart TitlePortfolio by subsector

TherapeuticsMedtech / DevicesEngineering / MaterialsICT / Digital

Chart TitlePortfolio by university

Imperial (20 cos.)Cambridge (four cos.)Oxford (three cos.)UCL (three cos.)

Chart TitlePortfolio concentration

CircassiaNexeonVeryanNext fiveNext 12Remainder of top 30

Net value of the top 30 companies at 31 July 2013

£179.5m £179.5m £179.5m

Portfolio companies with international presence and global ambition

Four of the top sixworld-ranked universities

A broad base of technologiesin areas of UK strength

Broad Sector Strength (Top 30)

sector cos. in top 30xx

Therapeutics

10

- Strong global demand - Can be long

development cycles- Regulatory control

£83.6m

Medtech and Devices

8

- Ageing population- Some regulatory

control

£35.8m

ICT / Digital

6

- Very fast moving- Strong consumer pull- Convergence of

technologies

£14.0m

Engineering / Materials

- Renewable energy a strong driver

- Manufacturing may have significant capital requirement

6

£46.1m

Circassia

£25.5mInnovations investment

£79.6mExternal investment

£105.1mTotal investment

Imperial Innovations Group plc

Circassia is focused on developing world-class immunotherapies for the treatment of

common allergies

Its most advanced product, for cat allergies, entered phase III clinical trials in Europe and

North America in late 2012 and it has seen positive phase II results for Grass & House

Dust mite allergy treatments

19.7%

Innovations ownership

Nexeon

£22.4mInnovations investment

£36.7mExternal investment

£59.1mTotal investment

Imperial Innovations Group plc

Nexeon is a battery materials and licensing company developing novel silicon anodes for lithium-ion batteries. Nexeon’s silicon materials enable the creation of cells with

much higher energy density, leading to longer battery life between charges

Strategic partnership with Wacker Chemie working well in commissioning continuous

operation pilot plant

Hatazawa-san appointed as CTO from Sony

36.3%

Innovations ownership

• Very early access to research outputs from Cambridge, Imperial, Oxford & UCL– Golden triangle of world-class universities– Committed to long-term relationships with universities

• Building a broad base of technology investment in ‘fundamental’ enabling technologies – UK strengths in future global markets:– advanced materials– biosciences– electronics– information and communication technology

• High quality investments: protected technology, excellent science & proven management

• Resources to invest, alone or with others, throughout company lifecycles

What’s Different About Innovations?