Elron Ventures : Investor Presentation- March 2023

ELRON VENTURES - INVESTOR PRESENTATION

March 2023

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, and nothing said therein constitutes a

COMMENTS "public offering", as defined in 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.

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

לשUsingתויחמומוour businessןויסינ andיוהיזבtechהנשleaders60-כ andתיינבpractitioners,תויונמדזה we,היגולונכטfocus ourיליבומ investmentsתוקזחא שומימוin fields where we

bring added value and are able to facilitate opportunities

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BUILDING VALUE IN VENTURE

CAPITAL INVESTMENTS

1960s

Defense

Elbit

14 exits totaling $1.8b since 2010, of which Elron Ventures share is

approximately $660m

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

Assets Under Management (AUM) ~$285M

Investment platform based on value circles: strategic design partners, advisory board, experienced founder network, CISO club

Growing cybersecurity / B2B software portfolio

Updated CartihHeal-Bioventus agreement: either the deferred acquisition consideration to be paid immediately, or sellers to retain ownership of CartiHeal

1970s

Medical Imaging

Elscint

1990s

Communications

Netvision | Partner

2010s

Medical Devices

Medingo

CartiHeal

1980s

Semiconductors

Orbotech | Zoran

2000s

Multi-strategy

Given Imaging

2020s

Cybersecurity /

This slide contains forward-looking information as defined in Section 32A of the Israel Securities Law, 5728- 1968. See Slide 2 of this presentation.

B2B Software

Secdo4

CARTIHEAL-BIOVENTUS SETTLEMENT AGREEMENT

(Announced in Immediate Release, February 28, 2023)
28/02/23
BIOVENTUS		BIOVENTUS
30 days to				Option: up to			END OF
		$5M
$10M
obtain funding			two 15-day		30-DAY
for deferred				extension		extension	PERIOD
consideration				periods

SELLERSSELLERS

CartiHeal shares were immediately transferred to the Sellers

Bioventus will make info & personnel available to carry out

CartiHeal's workplan

1. DEBT BALNACE NOT PAID

• PAYMENT OF DEBT BALANCE

OWNERSHIP OF CARTIHEAL REMAINS WITH THE SELLERS

CartiHeal has sufficient cash runway to carry out its workplan

PAYMENT OF DEBT BALANCE

Immediate payment of the debt balance in the amount of $215M (our share is $59M + interest); contingent consideration obligation in the amount of $125M remains intact (our share is $37.5M)

CARTIHEAL

• FDA-approvedunder
  'breakthrough designation'
• Pivotal IDE study: Final superior results (p-value >100%!) over surgical standard of care
• Immediate temporary reimbursement & pathway for establishing permanent reimbursement
• Go-to-market:Dozens of cases completed in U.S. in 2023 (est.)
• Discussions Bioventus conducted with over 600 surgeons indicated there is high demand & willingness to adopt

2020

Our holding in CartiHeal when the investment & option agreement with Bioventus was signed

25%

2022

The immediate consideration we received when the option to acquire CartiHeal was exercised (fully distributed as a dividend to Elron's shareholders)

$33M

2020-2023

Bioventus' total

investment in CartiHeal

~$40M

2023

Our holding in CartiHeal following the updated agreement

27.5%

This slide contains forward-looking information as defined in Section 32A of the Israel Securities Law, 5728-1968. See Slide 2 of this presentation.

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