INNOVATION March 2019 This presentation is for information purposes - PowerPoint PPT Presentation

INNOVATION March 2019

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 herein at any time. Elron shall not be liable for any loss, claim, liability or damage of any kind resulting from the investor's reliance on or reference to any detail, fact or opinion presented herein. The presentation is not intended to provide a comprehensive description of Elron's activities, and Elron urges investors to consider the information presented herein in conjunction with its public filings including its annual and other periodic reports. Nothing in this presentation should be considered "investment advice", as defined in the Israel Regulation of Investment Advice, Investment Marketing and Portfolio Management Law, 5755-1995. Certain statements made over the course of this presentation may be forward-looking in nature, as defined in Section 32A of the Israel Securities Law, 5728- 1968. Such forward-looking statements involve known and unknown risks, uncertainties, forecasts, assessments, estimates or other information, which relates to a future event or matter whose occurrence is not certain and which is not within the sole control of Elron, and other factors which may cause the actual results, performance and achievements of Elron to be materially different from any future results, performance and achievements implied by such forward-looking statements. These forward looking statements are not proved facts and are based on Elron's subjective assessments which rely on analysis of general information, public publications, researches and reviews, which do not include any liability as to the accurateness or completeness of the information contained there and their accurateness hasn't been examined by Elron. The realization of these forward looking statements will be affected by factors that cannot be assessed in advance and which are not within the control of Elron. Elron assumes no obligation to update the information in this presentation and disclaims any obligation to publicly update or revise any such forward-looking statements to reflect any change in its expectations or in events, conditions, or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements. These estimates, in whole or in part, may not materialize, or may materialize in a manner materially different than expected.The principal factors that may affect this are developments in Elron’s and its group companies’ fields of operation; failure to meet goals; inability to realize technologies; delays or malfunctions in development or manufacture; inability to obtain financing; modifications in technologies; modifications in work plan, goals and/or strategy; failure or delay in recruiting patients for clinical trials; interim analysis results; clinical trial results and analysis thereof, which may alter their implication on the regulatory pathways to be pursued for marketing and reimbursement approval of products around the world as well as the actual filing of marketing and reimbursement approval applications; feedback from the medical and scientific community; failure to obtain regulatory approvals; guidance and determinations by regulatory and insurance authorities; or if any risk associated with Elron and its group companies and the course of product development, clinical trials and their results, data analysis and/or regulatory filings occurs. 2

ELRON

+ 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 between Israeli R&D and industry, and create “a knowledge-based industry” (later named hi-tech…) 4

To deliver digital services from legacy To help enterprise security teams cope with the mounting intensity of cyberattacks systems automatically, easily & rapidly Rapid & automatic detection, Automatic API generation in just minutes investigation and remediation of security alerts 2016 $18M New investors include tier-1 strategic investors such as CommerzBank, Cardiff/Cathay, OG Tech, Leumi Partners, Prytek 2018 3.5x Our holding: 25% (FD) The amount of OpenLegacy’s financing round includes ~$5M in a secondary transaction. 5

Implant for cartilage and bone Rapid and automated microbiology Electrical stimulation-based treatment for ischemic stroke regeneration in load-bearing joints laboratory system 30% 29% 70% by Elron & RDC Our investment: $29m Our investment: $17m Our investment: $83m Minimally invasive endoscopic device Transcatheter mitral valve repair Remote monitoring of patients with for treatment of obesity system age-related macular degeneration 31% 36% 14% Our investment: $3m Our investment: €5.2m Our investment: $13.5m 6

SPG STIMULATION STARTED WITHIN 24 HRS REDUCED THE NUMBER OF DEPENDENT PATIENTS IN A BROAD 2000 CATEGORY OF CORTICAL STROKE PATIENTS (50% OF TRIAL OUR POPULATION) BY APPR. 1/3 INVESTMENT: 2005 $29M $97M • The longest clinically tested treatment window – on Johnson & Johnson, average, patients were treated 19 hrs after stroke onset Medtronic, Boston Scientific, Pitango, Cipio • Performed by MDs (mostly neurologists) Partners • Large effect size (9.7%) among cortical stroke patients, marginally missed statistical significance (p=0.0257) • Pooled analysis of ImpACT-24A & B showed a statistically significant (p=0.005) and clinically relevant benefit among To be the 1 st ischemic stroke therapy to cortical stroke patients break through both the treatment window & • Neutral effect in general trial population OUR eligibility barriers HOLDING: • SPG stimulation was safe across all patient groups Miniature implant used to electrically 30% • A strong dose-response relationship between stimulation stimulate a nervous center behind the nose (the SPG), to increase blood flow to the brain level and patient outcomes was revealed (p<0.001) File PMA submission with FDA ImpACT-24A: Randomized clinical trial that enrolled 300 patients during 2009-2010 ImpACT-24B: Randomized clinical trial that enrolled 1,000 patients during 2011-2018 This slide contains forward-looking information as defined in Section 32A of the Israel Securities Law, 5728-1968. See Slide 2 of this presentation. 7 BrainsGate’s system is an investigational device, not approved for marketing.

2009 OUR The study is currently ongoing in the US, EU, and Israel, with INVESTMENT: 2012 the purpose of an FDA PMA application $17M $51M Johnson & Johnson, To demonstrate the implant’s superiority over the surgical Accelmed, aMoon, Bioventus standard of care (microfracture or debridement) over a 2- year follow-up period 150 250 patients To treat joint surface lesions, and to halt the progression of knee osteoarthritis and delay OUR HOLDING: or prevent knee replacement 29% Implant for cartilage and bone regeneration in the joint Complete patient recruitment for interim analysis by end of 2019 6 weeks post-op 12 months post-op 3 weeks post-op This slide contains forward-looking information as defined in Section 32A of the Israel Securities Law, 5728-1968. See Slide 2 of this presentation. 8 CartiHeal’s system is an investigational device in the U.S., not approved for marketing there.

2004 OUR INVESTMENT: 2007 $83M $129M SCP Vitalife Accurate but lengthy Quick but subjective Relies on culturing (inefficient & High rate of misdiagnosis & costly process; lab results can take mistreatment (resulting in days) complications & antibiotic resistance) To revolutionize the rapid diagnostics of infectious diseases OUR Rapid and automated microbiology HOLDING: lab system for infectious diseases diagnosis; 1 st SCREEN, IDENTIFY and QUANTIFY pathogens in fluids 70% application – urinary tract infection CULTURE-FREE MICROBIOLOGY: By employing advanced photon- Add additional investors, continue detection technology, Pocared built a proprietary database of optical developing system, conduct a clinical trial during bacterial fingerprints, enabling RAPID and AUTOMATED diagnostics 2019 This slide contains forward-looking information as defined in Section 32A of the Israel Securities Law, 5728-1968. See Slide 2 of this presentation. 9 Pocared’s system is an investigational device, not approved for marketing.