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Alpha Growth plcFULL YEAR RESULTS – 13TH MARCH 2024 For a future made possible by science. Disclaimer. The communication of this presentation may be restricted by law; it is not intended for distribution to, or use by any person in any jurisdiction where such distribution or use would be unlawful. Any person into whose possession any part of this presentation comes is required by IP Group plc. (the “Company”) to inform himself/herself about and to observe any applicable restrictions in his/her respective jurisdiction. This presentation is for information purposes only and does not constitute an offer of, or a solicitation to purchase or subscribe for, any securities in which such offer or solicitation is unlawful or to any person to whom it is unlawful to make such offer or solicitation. This presentation or any part of it or the fact of its distribution shall not form the basis of, or be relied on in connection with, any contract commitment or investment decision in relation thereto nor does it constitute a recommendation regarding the securities of the Company. No person must construe the information contained in this presentation as legal, business, tax or investment advice. Investors and prospective investors in the securities of the Company are required to make their own independent investigation and appraisal of the business and financial condition of the Company and the nature of the securities, and consult his/her own independent counsel, business advisor, tax advisor, investment advisor or any other authorised advisors as to the legal, business, tax, investment or any other matters pertaining to the Company and the securities of the Company. The statements contained in this presentation are made as at the date of this presentation. The distribution of this presentation shall under no circumstances imply that there shall not be a change in the Company’s affairs since the date of this presentation or that the information contained in this presentation is correct as of any date subsequent to the date of this presentation. The Company or any member, employee, counsel, officer, director, representative, agent or affiliate of the Company does not have any obligation to update or otherwise revise any statements reflecting circumstances arising after the date of this presentation. To the extent permitted by applicable law, no representation or warranty, express or implied, is made by the Company or any member, employee, counsel, officer, director, representative, agent or affiliate of the Company as to the accuracy or completeness of any information contained in this presentation. No information contained in this presentation is, or shall be relied upon by any person as to its accuracy or completeness or as a promise or representation by the Company. The Company expressly disclaims any and all liability that may be based on any information contained in this presentation and any errors or omissions herein. No person is authorised to give any information not contained in this presentation and any information not contained in this presentation must not be relied upon as having been authorised by or on behalf of the Company. 2 © IP GROUP PLC 2024 | FULL YEAR RESULTS Nothing contained in this presentation shall be deemed to be a profit forecast. This presentation may contain certain forward-looking statements, beliefs or opinions with respect of the financial condition and business operations of the Company as well as certain plans and objectives of the Company. By their nature, forward- looking statements involve risk and uncertainty, because they depend on circumstances and events that may or may not occur in the future. Past performance of the Company cannot be relied on as a guide to future performance, and any actual results and developments may differ materially from those expressed in or implied by such forward-looking statements. The Company can give no assurance that such expectations will prove to have been correct and the Company therefore cautions any person not to place undue reliance on these forward-looking statements which speak only as at the date of this presentation. Contents. 01 Overview 02 Maturing portfolio with multiple inflection points 03 Financial results 04 Summary and Q&A 3 © IP GROUP PLC 2024 | FULL YEAR RESULTS Speakers. Dr Sam Williams Greg Smith. CEO David Baynes. CFOO Dr Sam Williams. Managing Partner, Life Sciences Paul Barrett. Founder, CEO & Director at Hysata 4 © IP GROUP PLC 2024 | FULL YEAR RESULTS 01 Overview 5 © IP GROUP PLC 2024 | FULL YEAR RESULTS Full Year Overview. Maturing portfolio with multiple near-term inflection points. Financial strength maintained during challenging markets. Continued commitment to shareholder returns. Portfolio entering a milestone rich window Sector specialists with investment focused on highest growth opportunities Geographic focus on UK and Aus, decisive action on US & China Group & portfolio well-funded Committed to regular cash returns from exits Gross cash £227m NAV per share of 114.8p IR activity more than doubled Further £20m buyback underway £0.7bn. Total portfolio capital raised (13%). FY23 return on NAV per share £75m. Cash returned to shareholders since 2021 6 © IP GROUP PLC 2024 | FULL YEAR RESULTS IP Group: industry pioneers. Pioneered the model and catalysed an industry. UK’s most active investor in science and innovation companies. Focused portfolio set to deliver. 7 © IP GROUP PLC 2024 | FULL YEAR RESULTS Investment themes and value drivers. Healthier future. Multiple clinical trial outcomes Tech-enriched future. Strong revenue growth Enabling widespread adoption of AI Regenerative future. Significant fundraisings New pipeline 8 © IP GROUP PLC 2024 | FULL YEAR RESULTS High opportunity markets. Healthier future. Big Pharma looking for investment opportunities • $20bn+ p.a. pharma revenues at risk due to ‘patent cliff’1 • $1.4tn Biopharma M&A Firepower2 Market drivers.. Tech-enriched future. The digital transformation is the most pervasive trend shaping our world • $40bn fraud detection and prevention market by 20253 • Semiconductor memory market $103bn in 2022, projected to grow to $160bn+ by 20304 Regenerative future. Accelerating transition towards clean energy • Green hydrogen: $1.7tn investment in electrolysers needed by 20505 • Autonomous vehicle software market to double by 2030 to $80bn6 1. 2. 9 Evaluate Pharma Outlook to 2028 EY Biopharma Firepower Report 3. 4. Markets and Markets Sky Quest.com “Carbonomics – The clean hydrogen revolution”, Goldman Sachs 5. 6. McKinsey © IP GROUP PLC 2024 | FULL YEAR RESULTS 02 Maturing portfolio with multiple inflection points 10 © IP GROUP PLC 2024 | FULL YEAR RESULTS Healthier Future. 11 © IP GROUP PLC 2024 | FULL YEAR RESULTS Entering a milestone-rich window. THERAPEUTICS PORTFOLIO IP GROUP VALUE £m COMPANY ONCOLOGY INFLAMMATION OTHER 17.4 19.6 9.4 5.3 7.6 16.1 113.8 15.8 4.0 19.2 5.0 15.7 1.6 1 2 3 4 *Timing reflects current best estimate of clinical readouts and is subject to change 1. Based on a disclosed trial start date in 2024 we estimate trial completion in 2H 2025 2. Based on a disclosure in the media we estimate first batch of data to come in mid-2025 3. Phase 2b interim data for SerpinPC and Phase 1 interim data for ORX750 is estimated in Q4 2024 4. Phase 2/3 interim data for KL1333 is estimated in 2H 2024 12 © IP GROUP PLC 2024 | FULL YEAR RESULTS 2024 Phase 1/2 Phase 1/2 Phase 2b Phase 1 Phase 2b Phase 2/3 2025 Phase 2 Phase 1/2 Phase 1/2 Phase 1b Phase 2a Phase 3 Phase 2a From disease modification to disease resolution. Phase 2b data for leramistat (MBS2320) in rheumatoid arthritis, a $25bn1 market, on target; in 1H24 FDA fast-track and orphan drug designation for the treatment of idiopathic pulmonary fibrosis (IPF), a $4bn2 market and condition of high unmet need IPF phase 2; results expected 2025 IP Group provided £15m, committing £25m in total, fully funding both trials 13 © IP GROUP PLC 2024 | FULL YEAR RESULTS Note: As of 31 December 2023 % holding on an undiluted basis. 1. 2. Based on Berenberg DrugBank analysis and GlobalData Based on Citeline data £113.8m. IPG Value 56.5%. IPG % Tech-enriched Future. 14 © IP GROUP PLC 2024 | FULL YEAR RESULTS AI and Machine Learning Opportunity. Digital transformation. 15 © IP GROUP PLC 2024 | FULL YEAR RESULTS Leading predictive analytics for fraud and cybercrime prevention. Applied AI solution identifies abnormal transactions to automatically evaluate financial crime risk 50bn events processed each year, protecting 500m consumers from risk £34.4m revenues in 2022, growing significantly above market rate Customers include blue-chip financial institutions such as HSBC, Worldpay and NatWest Recurring revenues representing c.80% £73.0m. IPG Value 20.1%. IPG % Our job is to make the world a safer place to transact. Martina King CEO 16 © IP GROUP PLC 2024 | FULL YEAR RESULTS Note: As of 31 December 2023 % holding on an undiluted basis. Regenerative Future. 17 © IP GROUP PLC 2024 | FULL YEAR RESULTS Redefining the economics of green hydrogen. Green hydrogen is expected to supply 10%-15% of all energy in a net-zero global economy by 2050. Highly efficient electrolysers enable economically viable green hydrogen Hysata has developed a unique, patented electrolyser with proven 95% system efficiency versus the best incumbents at 75% Strong market pull and company on track to deliver commercial scale systems with key customers in near future Deep experience in the team across electrolysers and high-volume manufacturing Disruptive product proposition underpinned by low capex, minimal EPC and design for mass manufacturability for hyperscaling 18 © IP GROUP PLC 2024 | FULL YEAR RESULTS 03 Financial results Strong balance sheet with well-funded portfolio 19 © IP GROUP PLC 2024 | FULL YEAR RESULTS Summary financials. Gross Cash. Net Asset Value (NAV). £1,190m (FY22 £1,376m) Return on NAV. £227m (FY22 £241.5m) 114.8pps (FY22 132.9pps) (13%) (FY22 (20%)) Share Buyback Announced. £20m (FY22 nil) We continue to navigate carefully through difficult markets. With £227m gross cash and only 13% of our portfolio needing to raise money in 2024, we are well-positioned for an improvement in investor appetite. David Baynes CFOO 20 © IP GROUP PLC 2024 | FULL YEAR RESULTS Drivers of private portfolio fair value changes. £55m (£27m) (£22m) (£11m) (£8m) (£116m) Delayed funding 21 © IP GROUP PLC 2024 | FULL YEAR RESULTS Down rounds Market-based adjustments Company-specific impacts (net) FX Up rounds Results: Balance sheet - net assets. Portfolio Net Cash Other net liabilities NAV £1.4b £1,259m £160m (£43m) 2 FY 2022 22 © IP GROUP PLC 2024 | FULL YEAR RESULTS NAV £1.2b £1,165m £92m (£66m) 1 FY 2023 Other net liabilities Net Cash (6.4)p 8.9p Remaining portfolio 26.9p 37.6p Other top 20 114.8p NAV per share 16.7p 11.0p 7.0p 6.8p 6.3p Total portfolio composition and concentration. Portfolio by sector: Portfolio concentration: Other 10% Life Sciences 33% Top 40 by value 14% Deeptech 20% Platform investments 8% £1.2bn. Total 24% Cleantech 15% 23 © IP GROUP PLC 2024 | FULL YEAR RESULTS 76% Top 20 by value The Group remains well funded. £241.5m £38.6m (£13.0m) (£22.5m) (£0.6m) £226.9m (£73.2m) £56.1m Gross Debt Net Opening Closing 241.5 (81.4) 160.1 226.9 (135.2) 91.7 Opening gross Investment Debt & interest Realisations Dividends paid Overheads WC/other Closing gross 24 © IP GROUP PLC 2024 | FULL YEAR RESULTS And our portfolio remains well funded. Portfolio funding profile. Companies >£4m value representing >90% of equity and debt investments 41% 2025 25 © IP GROUP PLC 2024 | FULL YEAR RESULTS 2027 1% 2026 10% Trade to profitability Our portfolio. For the larger companies in the portfolio: 35% 35% funded to expected profitability Only 13% need to raise before the end of 2024 7% 6% 2024 H2 2024 H1 Over 50% 2025 or later Portfolio valuation approach. Primary Approach Description Proportion of NAV t u p n i t e k r a m f o e e r g e d n o d e s a b Quoted market prices Bid price at valuation date Funding transaction Last funding round price, without adjustment 17% 30% Adjusted financing Valuation based primarily on recent financing price, adjusted upwards (5 companies) or downwards (14 companies) based on positive or negative performance since last priced financing 26% Future market/ commercial events Near-term event, typically a funding round or exit which has documented terms but has not completed at the valuation date 2% Revenue multiples Estimate of company Enterprise Value based on actual or forecast revenue and a revenue multiple Discounted Cashflow (DCF) Models Estimate based on cashflow projections, probability and risk-weighted to the valuation date 7% 11% e c n e r e f e r p f o r e d r o l i a c p y T 26 © IP GROUP PLC 2024 | FULL YEAR RESULTS Debt. FY22 private debt placing totalling £120m at 5.25% fixed interest 27 © IP GROUP PLC 2024 | FULL YEAR RESULTS Drawn down in two tranches: 1. £60m 2022 2. £60m 2023 1. 2. 3. Continued commitment to shareholder returns. Committed to regular cash returns from exits Cash returns in the form of share buybacks when the share price discount exceeds 20% Further £20m buyback underway £75m. Cash returned to shareholders since 2021 28 © IP GROUP PLC 2024 | FULL YEAR RESULTS 04 Summary For a future made possible by science 29 © IP GROUP PLC 2024 | FULL YEAR RESULTS . l s t s y a t a c 4 2 0 2 Phase 2b readout in Q2 Potential Phase 1/2 data by year-end Ongoing commercial rollout Phase 3 progress and safety readouts Revenue growth Funding round Healthier future. Tech-enriched future. Regenerative future. 30 © IP GROUP PLC 2024 | FULL YEAR RESULTS Focused, with significant inflection points ahead. Maturing portfolio with multiple near-term inflection points. Financial strength maintained during challenging markets. Continued commitment to shareholder returns. 31 © IP GROUP PLC 2024 | FULL YEAR RESULTS Q&A 32 © IP GROUP PLC 2024 | FULL YEAR RESULTS 05 Appendices 33 © IP GROUP PLC 2024 | FULL YEAR RESULTS 1 | Summary of strategy. Accelerating the impact of science for a better future. A future enhanced by the impact of transformative businesses we have identified, backed and grown as long-term partners. Have an impact on the world that counts. Develop our unique insight, expertise and access. Accelerate value creation. Build a truly distinctive reputation. Be a home for exceptional talent. Deliver class-leading internal processes, services and controls. 34 © IP GROUP PLC 2024 | FULL YEAR RESULTS 2 | Impact is in our DNA. IMPACT AT OUR CORE GROUP LEVEL IMPACT PORTFOLIO LEVEL IMPACT Impact on our communities. We actively work with local community groups to increase access to skills and opportunities for all Impact is a strategic driver for IP Group. Impact is one of our five strategic pillars and is a fundamental component of our business model and corporate strategy Tech-enriched future. Regenerative future. Healthier future. We back deeptech companies and future computing solutions, that enable the digital economy, and generate prosperity for all We invest in science, addressing the global climate challenge, and back innovators and pioneers, creating revolutionary climate technology solutions We invest in breakthrough therapeutics, which focus on cure and prevention rather than only treating symptoms We are investing today in science, addressing the world’s greatest unmet challenges By the numbers. £1.8bn1 Backing science-based businesses 500+ companies backed across cleantech, life sciences and deeptech 10k+ jobs created by the companies we have backed Note: The use by IP Group plc of any MSCI ESG research llc or its affiliates (“MSCI”) data, and the use of MSCI logos, trademarks, service marks or index names herein, do not constitute a sponsorship, endorsement, recommendation, or promotion of IP Group plc by MSCI. MSCI services and data are the property of MSCI or its information providers, and are provided ‘as-is’ and without warranty. MSCI names and logos are trademarks or service marks of MSCI. 1. £1.2bn NAV + £650m 3rd party AUM as of 31 December 2023. 35 © IP GROUP PLC 2024 | FULL YEAR RESULTS 3 | Board. Sir Douglas Flint Non-executive Chairman Previously Group Chairman of HSBC, spent 15 years as HSBC’s Group Finance Director, joining from KPMG where he was a partner. Dr Elaine Sullivan Non-executive Director 27 years’ international pharmaceutical industry experience including Eli Lilly and AstraZeneca. Aedhmar Hynes Non-executive Director Background in communications advising brands through digital transformation and technology disruption. Ranked among the ‘PR Week’ 50 most powerful communications professionals in the world. Greg Smith Chief Executive Officer Decade as Group CFO driving strategy, scale and geographic expansion. Deep experience in investment appraisal, capital and resource allocation. Previously KPMG and $3bn fund of hedge funds. Heejae Chae Non-executive Director Experienced public company director. Former CEO of AIM-listed Scapa Group plc, a global supplier of products for healthcare and industrial markets. Anita Kidgell Non-executive Director 25 years of pharmaceutical experience. Head of Corporate Strategy at GSK leading strategic initiatives in China, ESG, geopolitics, integrations and demergers. David Baynes Chief Financial and Operating Officer Finance and venture background, long track record of working successfully with the Boards of investee companies Co-founder Fusion IP plc.; bought by IP Group. Dr Caroline Brown Non-executive Director Background in corporate finance, advising global corporations and governments. Experience in managing early stage companies in energy and tech sectors. Angela Leach Company Secretary and Group Legal Counsel Background in corporate, commercial and IP law. Previously CMS Cameron McKenna and Memery Crystal. 36 © IP GROUP PLC 2024 | FULL YEAR RESULTS 4 | Executive Committee. Greg Smith Chief Executive Officer See bio on previous page. David Baynes Chief Financial and Operating Officer See bio on previous page. Dr Sam Williams Managing Partner, Life Sciences 20 years experience in biotech, both as equity analyst and entrepreneur. Co-founder: Istesso Board member: Pulmocide Ltd, Diurnal Group plc, Psioxus Ltd and Microbiotica Limited. Moray Wright CEO Parkwalk Advisors 20 years experience with corporate and financial institutions and sits on the board of several Parkwalk companies. Previously: Hoare Govett, JP Morgan, Lazard and Mirabaud. Dr Mark Reilly Managing Partner, Technology Background in software, web, optics, and electronics. Previously Remarkable Innovation, a technical due diligence company with a Fortune 500 and national government clients. Liz Vaughan-Adams Director of Communications Background in crisis management, M&A, IPOs, fund raisings, media relations, CSR and digital strategies. Anthony York Group People Director Proven capability of developing and leading high-performing teams. Specialising in development of both HR and Reward strategies that directly support commercial growth objectives. 37 © IP GROUP PLC 2024 | FULL YEAR RESULTS Angela Leach Company Secretary and Group Legal Counsel See bio on previous page. Chris Glasson Group Finance Director Chartered accountant with 15 years+ experience in finance. Previously: Deloitte, Tesco, The Carphone Warehouse. Joyce Xie Managing Director, Global Capital International career in investment management and investment banking. Previously: HSBC investment banking, portfolio management. 5 | Shareholder Register (Above 2% Holders). Shareholder Railways Pension Scheme Lombard Odier BlackRock Vanguard Baillie Gifford Schroder Investment Management Imperial College abrdn Lansdowne Partners Border to Coast Legal & General Investment Management Telstra Super *Source: RD:IR database as at 29 February 2024 and TR1 filings 38 © IP GROUP PLC 2024 | FULL YEAR RESULTS % holding 15.7% 7.4% 4.7% 4.5% 4.2% 3.9% 2.9% 2.9% 2.7% 2.6% 2.4% 2.3% 6 | Subsector focus and example holdings. Understanding disease Reprogramming cells Reconditioning tissue Redirecting behaviour to reduce risk Applied AI Next generation networks Human-machine interface Future compute Mobility and transport Clean power generation Heating and cooling Carbon free fuel Healthier future. Tech-enriched future. Regenerative future. 39 © IP GROUP PLC 2024 | FULL YEAR RESULTS 7 | Top 10 holdings and fair value movement 2023. £173.6m £113.8m Healthier Future Regenerative Future Tech-Enriched Future FV mvmt £73.0m £70.0m £65.7m £64.9m £46.5m £3.1m £8.8m (£31.9m) £34.0m £31.6m £31.0m £20.9m £0.0m £0.0m (£0.2m) (£19.6m) (£6.9m) Oxford Nanopore Technologies plc Istesso Limited Featurespace Limited Hysata Pty Ltd Oxa Autonomy Limited (£49.6m) First Light Fusion Limited Hinge Health, Inc. Garrison Technology Limited Ultraleap Holdings Limited Bramble Energy Limited Fair value movements include both realised and unrealised movements and FX 40 © IP GROUP PLC 2024 | FULL YEAR RESULTS Visionary ventures for a future made possible by science. 2nd Floor, 3 Pancras Square, King’s Cross, London, N1C 4AG Tel: +44 (0) 20 7444 0050 Web: www.ipgroupplc.com 41 © IP GROUP PLC 2024 | FULL YEAR RESULTS
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