Presentatie TiGenix

8/2/2019 Presentatie TiGenix

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At the Forefront of Regenerative Medicine

Frank HazevoetsCFO and Company secretary

Luc Van de SteenMember of the Board

BrusselsJanuary 14, 2010


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This document does not constitute or form part of any offer or invitation to sell or issue,

or any solicitation of any offer to purchase or subscribe for, any shares in the Company,nor shall any part of it nor the fact of its distribution form part of or be relied on inconnection with any contract or investment decision relating thereto, nor does itconstitute a recommendation regarding the securities of the Company.This document may contain forward-looking statements and estimates made by theCompany, including with respect to the anticipated future performance of TiGenix andthe market in which it operates. They include all matters that are not historical facts.Such statements, forecasts and estimates are based on various assumptions and

assessments of known and unknown risks, uncertainties and other factors, which weredeemed reasonable when made but may or may not prove to be correct. Actual eventsare difficult to predict and may depend upon factors that are beyond the Company'scontrol. Therefore, actual results, the financial condition, performance or achievementsof TiGenix, or industry results, may turn out to be materially different from any futureresults, performance or achievements expressed or implied by such statements,forecasts and estimates. Forward-looking statements, forecasts and estimates onlyspeak as of the date of this document and no representations are made as to theaccuracy or fairness of such forward-looking statements, forecasts and estimates.TiGenix disclaims any obligation to update any such forward-looking statement,forecast or estimates to reflect any change in the Companys expectations with regardthereto, or any change in events, conditions or circumstances on which any suchstatement, forecast or estimate is based.

Notice


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The next 30 minutes

TiGenix at a glance

The strategy and the execution

10 years of building the company

Why an IPO and listing on Euronext Brussels? Corporate governance at TiGenix


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Focus

Products

Pipeline

Locations

Finance

Regenerative medicine - Innovative local treatments

for damaged and diseased joints

ChondroCelect, autologous cell-based product forcartilage repair. First approved ATMP in Europe.ChondromimeticTM, resorbable implant for treatmentof osteochondral defects. Approved in Europe (CE)

Complementary regenerative medicine products,integrating biomaterials and adult stem cells

HQ in Leuven (Belgium); Manufacturing in Belgium,the Netherlands & Memphis (US); Cambridge (UK)

Listed on Euronext Brussels since March 07

Raised in total mEUR 88

TiGenix at a glance


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Regenerative Medicine

Regenerative Medicine

Cells Biomaterials Growth factors

Cell Therapy Tissue Engineering

Products to regenerate tissues and cure patients

Regenerative medicine replaces or regenerates human cells,tissue or organs, to restore or establish normal function


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Technology

scope

TiGenix strategy

Indication scope

Other

Cardio

Skin

Muscle

Spine

Bone

Ligaments

Meniscus

Cartilage

TiGenix aims to be a global leaderin regenerative medicine solutions

for patients with damagedand arthritic joints

femur

articular cartilage

tibia

inner meniscus

outer meniscus


7/3077

Indication scope

Other

Cardio

Skin

Muscle

Spine

Bone

Tendon

Meniscus

Cartilage


Technology

scope

Acquisition of Orthomimetics

UK based; spin-out from MIT and University ofCambridge

Regenerative Medicine for a mobile, active life

Lead product for osteochondral repair CE-marked,complementary to ChondroCelect: distinctindication, same point of sale

Leading collagen-based biomaterials platform


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Complementary market-ready product portfolio

Small lesions Large Lesions

CartilageDamage

Only

Cartilage andSubchondralBone Damage

ChondromimeticOsteochondral Plug

ChondroCelect

+


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GMP Manufacturing

Europe GMP approved cleanroom

facility

EU capacity secured forproduct launch

New site and financingsecured; Constructionstarted upon approval

U.S.A (Memphis) Operational cell expansion facility

1,500 m fully equipped cell cultureand 2,000m expansion space

Team in place

Process & Tech transfer Ensuring transfer between

R&D and manufacturingand between sites

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10/3010

EU market launch

Commercial core team in place

Key reference centers trained

Ease of use supported

Communication campaign ready

Pricing and reimbursement on track

First (commercial) patients treated


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Innovative products in the pipeline

Further improvements to ChondroCelect E.g. Cryopreservation

Development of enhanced delivery systems E.g. for minimal invasive implantation

Development of products for meniscus repair Cell free scaffold Cell-based combination products

Development of an adult stem cell platform For treatment of other tissues

In view of allogeneic treatments

Leveraging of Orthomimetics biomaterials platform

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Executing the strategy in 2009

ChondroCelect approved in EU by EMEA as first ATMP New EU manufacturing site secured and financed

Acquisition of Orthomimetics

A second approved product in EU

Biomaterials platform

Building the commercial core team for the launch

Cash use financed through private placements

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2000 2001 : Seed money / Grants / Bridge loan

Initial seed funding: EUR 1.000.000

Gemma Frisius Fonds

Founders

K.U.Leuven R&D

Research grant: EUR 1.000.000

IWT

Bridge loan: EUR 800.000

Use of proceeds

Research & validation of patents

Preparation of clinical trial

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2003 : series A round - VCs and Private equity entered

EUR 12,000,000

Investors

ING Private Equity, Capricorn Venture Partners, Auriga Partners,Fagus (Fortis)

Conversion of bridge loan

Use of proceeds:

clinical development of lead product development and expansion of product pipeline and IP position

setting up of in-house research laboratory

strengthening the team

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2005 : Series B round

EUR 16.000.000

Use of proceeds:

Drive regulatory process for ChondroCelect at FDA and EMEA

Set up network of key opinion leaders in EU and US

Develop pipeline & next generation ChondroCelect products

Prepare TiGenix entry in the US

Investors

Existing investors

Broader base of knowledgable investors

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Role & contribution from VCs and Private Equity

Challenger

Pre-investment

Post-investment

Support (e.g. in recruiting)

Sounding board & sparring partner : strategic direction

Industry expertise & contacts

More formality in corporate governance

Financial reporting/communication Milestone driven

ROI : exit opportunities / dilution

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Why an IPO and listing on Euronext Brussels?

Additional source of funding

Potential exit for VCs

Creating visibility and awareness


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Stepping out of the comfort zone

Underwriters Legal Counsel Issuers Legal Counsel

Auditors

V4GStrategic consultant

CITYGATEPR Advisors

45 persons

IPO Project ToscaIndicative timetable

Action / Event Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Week 9 Week 10 Week 11 Week 12 Week 13 Week 14 Week 15 Week 16 Week 17

M T W T F M T W T F M T W T F M T W T F M T W T F M T W T F M T W T F M T W T F M T W T F M T W T F M T W T F M T W T F M T W T F M T W T F M T W T F M T W T F M T W T F M T W T F M T W T F M T W T F M T W T F M T W T F

Kick-off meeting

Determine offer structure

Data room preparation

Due diligence

Comfort Letters, legal opinions

Business Plan/Valuation

Equity story

Audited accounts IFRS

Preparation of legal documents- Underwriting agreement

- Agreement among managers

- Legalopinions

Signing- Underwriting agreement

- Agreement among managers

Prospectus drafting

Present project to authorities

Filling CBFA

Review CBFA

Approval CBFA

Filing Euronext

Board meeting

Prospectus translation

Appointment of printers

Prospectus printing

Prospectus availability

Preparation of Management presentation

Syndicate Analyst meeting - availability research guidelines

Research preparation

Research distribution

Research black-out period Listing + 40 days

Sales force briefing

Investor education

Preparation of Roadshow presentation

Presse conference

Roadshow

Launch

Price range

Bookbuilding

Pricing/allocation

Listing

Payment date

2/apr

Week 21

9/apr

Week 22

19/mrt

Week 19

26/mrt

Week 20

A.Legal,Financialandbusinessduediligence

Marketing/Research

Offering/Pricing

22/jan

Documentation

13/nov 20/nov 11/dec27/nov 19/feb5/feb 12/feb29/jan 12/mrt

Week 18

26/feb 5/mrt4/dec 8/jan 15/jan18/dec 25/dec 1/jan

Researc

h/

Marketin

g

Legal/Finance

Preparation

Prospectus

Offering

Pricing

Roadshow overview with institutional investors

Retail meetings in Leuven and Gent

Press meetings, Kanaal Z, VFB
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New shareholder structure

Class A

Class B

Class C

Class D

Class E

Class A : Gemma Frisius Fund

Class B : Founders (Gil Beyen and Frank Luyten)

Class C : Universities

Class D : Personnel

Class E : VCs and private equity

Pre-IPO

One class of shares

Free float

Specialtyfunds

Beneluxfunds

Otherfunds

Retail

Post-IPO

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Advantages/inconveniences of a listing

Regular reporting

Business update

Financial update (IFRS)

Transparancy

Corporate governance

Short term stock performance vs long term strategy

Open communication and corporate governance structures in placeto contribute to the creation of long-term stakeholder value

Additional source of funding

Listed shares as financing tool

+/- 13 M

Orthomimetics acquisition +/- 16 M

Creating visibility and awareness


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Governance structure at TiGenix

"one-tier" governance structure

The Board of Directors is the ultimate decision-making body

The Board appointed a Chairman (who must always bedifferent from the CEO) and a Company Secretary

The Board has delegated the Companys daily management

to a managing director

The Board has established

an Audit Committee, a Nomination and Remuneration Committee

Corporate Governance code


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Shareholding structure

Important early stage investors still reference shareholders

ING Group, BNP-Paribas Fortis Group, Gemma-Frisius

Key management

Have brought Tigenix to where it is today

Ensured stability

Institutional investors

Important new sources of funding

Not represented in the Board

Stable: show confidence in long term goals

Other Investors

Market actors

Shorter term investors, variable and unknown


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Role, powers and responsibilities of the Board

Develop a clear vision and strategy about the overallcorporate goals

Take, manage and control risks

Control

TiGenix aims to be a global leader inregenerative medicine solutions for patients

with damaged and arthritic joints

femur

articular cartilage

tibia

inner meniscus

outer meniscus

- Review reporting (Audit committee)- Business and financial update

- Supervise Corporate communication

Accountability - Reliable information to all stakeholders


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Composition of the Board

Representation of key investors

Important role of independent Board Members (Chairman,majority in committees)

Chaired by strong and experienced person (W. Duron)

Close and intensive cooperation with CEO / Top management

Steering together with CEO

Composition

Diversity in knowledge and experience (scientific, processes,financial, legal, market(ing)

Acting in the interest of the company

Medium-Long term mindset

Room for discussion

Adapt composition to Corporate needs throughout evolution


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Individual requirements of the directors

Particular professional experience, knowledge and skills

Very active and engaged Board: Sufficient time to exercise

their duties 2009: 14 meetings :

Board involved soon in important decisions

Important decisions regularly require second meeting

Not purely Go/ No go decisions

Responsible for acquiring and maintaining skills andknowledge


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Chairman and secretary

Chairman of the Board

Can not be the CEO

Independent

The leadership of the Board Drive decisions in the Board

Support and advice to the CEO

one on one meetings

Company Secretary

Advise the Board on all governance matters


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Key to good corporate governance

Transparency and reliable information to all the stakeholders

It is not just about the rules, it is about how you live

Corporate Governance in your company

It is not just about the Board of Directors, it is about all levelsin a company

Control is necessary, but lets not forget about strategy and

entrepreneurship


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Key to good corporate governance

Is all about Is not so much aboutMeans Goal

Guidance Compliance

Spirit Written rules

Entrepreneurship Abuse

Risk taking Recklessness

Assurance Guarantees


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More legislation required?

Will this lead to better governance?What do we want to reach?

Different types of companies have different needs

There is a need for flexibility and common sense Common ground: accountability and transparency

The balance is essential

More rules will not prevent abuse or fraud

Procedures or disciplinary action

Corporate Governance is a building block for successin the long run but no guarantee for success


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TiGenix NVRomeinse straat 12 bus 23001 Leuven, BelgiumT: +32 (0)16 39 60 60

Thank you for your attention

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