Elron Electronic Industries : Investor Presentation Nov 2021

ELRON VENTURES - INVESTOR PRESENTATION

November 2021

COMMENTS	the presentation does not constitute an invitation to receive such offers, and nothing said therein constitutes a "public offering", as defined in
	This presentation is for information purposes only. By this presentation, Elron does not intend to solicit offers to purchase its securities and
	the Israel Securities Law, 5728-1968.
	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; modifications in technologies; modifications in work plan, goals and/or strategy; guidance and determinations by regulatory
	authorities; unforeseen regulatory difficulties; failure to obtain regulatory approvals; regulatory developments and changes in fields of
	operation; unforeseen developments in the course of clinical trials and trial results; reliance on third parties including data analysis services;
	feedback from the medical and scientific community; regulatory changes and restrictions on supply of raw materials for manufacture; inability
	to obtain financing; delays or malfunctions in development or manufacture; or if any risk associated with Elron and its group companies and
	the course of product development or sales occurs. In addition, the spread of the coronavirus (COVID-19) may lead to difficulties or delays in
	recruiting patients for clinical trials or initiating trial sites; operational constraints amassing raw material inventories; significant potential
	difficulties in raising capital for group companies; budget cuts among potential customers and subsequent decisions to increase product life-
	cycles rather than adopt new technology solutions; potential difficulties for group companies in closing commercial transactions or generating
	leads and managing lengthy and complex sale-cycles, among other things, due to mobility constraints between countries; a worldwide global
	slowdown that will make it difficult to execute exit transactions. In addition, as of the date of this presentation, the capital markets are
	experiencing high volatility, including significant stock price falls, due to the market response to the spread of the coronavirus (COVID-19).
	All amounts are fully attributed to Elron and RDC unless specified otherwise.

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ELRON VENTURES:

Elron was established in 1962 by Uzia Galil

WE SPECIALIZE IN EARLY-STAGE ISRAELI INVESTMENTS WITH THE POTENTIAL TO BECOME MARKET LEADERS

							To bridge the gap
							between Israeli R&D
							and industry, and
THE IDEA
create "a knowledge-
							based industry" (later
							named hi-tech…)

Today the goal is to provide entrepreneurs with a nurturing environment, as well as the support system and toolset they need to realize our shared vision - turning ventures into global market leaders

We have 60 years	Weתחכומrely onהיגטרטסאa proven
experience	strategyהקומע תוברועמof handsלש-
identifying	onתימוימויהinvolvementתוליעפבin
opportunities,	theהצובקהday-toתורבח-dayלש
building technology	operationsתייגטרטסאof דצלour
leaders, and exiting	תצאלgroup"ךרעהcompaniesילגעמ"
holdings	alongקושל הרידחwith 'valueיכילהת
	circles' to accelerate
	go-to-market
	processes

לשWeתויחמומוfocus ourןויסינ investmentsיוהיזב הנש 60in-כ fieldsתיינב where,תויונמדזהwe bring,היגולונכטaddedיליבומvalue andתוקזחאare ableשומימוto facilitate opportunities

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BUILDING VALUE IN VENTURE

CAPITAL INVESTMENTS

1960s

Defense

Elbit

12 exits totaling $1.6b since 2010, including proceeds of $600m for Elron Ventures

Team of experienced VC professionals, field experts, advisors & young innovators

23 portfolio companies in which

we invested ~$222m

Investment platform based on 4 value circles: strategic partnerships, advisory board, experienced founder network, diverse investment team

Growing cyber / enterprise software portfolio

Medtech companies ripe for maturation (CartiHeal & BrainsGate)

1970s

Medical Imaging

Elscint

1980s

Semiconductors

Orbotech | Zoran

1990s

Communications

Netvision | Partner

2000s

Multi-strategy

Given Imaging

2010s

Medical Devices

Medingo

2020s

This slide contains forward-looking information as defined in Section 32A of the Israel Securities Law, 5728- 1968.

See Slide 2 of this presentation.

Cyber/Enterprise

Software

Secdo4

TEAMWORK

An experienced team which led 12 exits, dozens of investments, and follow-on financings totaling hundreds of millions of $s over the last decade

YARON ELAD

CEO

Vast experience in tech investing & strategic deals. Established Elron Ventures' software activities. Led a string of M&A transactions over the last 14 years. Has been with Elron Ventures since 2007.

NIV LEVY

CFO

Broad experience in accounting, financing, taxation, and securities regulations. Oversees Elron Ventures' financial operations, and plays a significant role in the company's M&A and financing transactions. Has been with Elron Ventures since 2009.

ELIK ETZION

Head of Cyber and Enterprise Software

Lt. Col. Ret. Previously CISO at Bank Hapoalim Group and Deputy Commander of the IDF's Cyber Division in the Intelligence Corp 8200 unit. Joined Elron Ventures in July 2021.

ZOHAR ROZENBERG

Venture Partner

Col. Ret. Headed the IDF's Cyber Division in the Intelligence Corp 8200 unit. Established Elron Ventures' cyber portfolio and successfully led the investment and sale of Secdo 2018 and Alcide in 2021. Has been with Elron Ventures since 2016.

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