Stephen Hampson

Managing Director’s Address

Creating global businesses from intellectual propertyManaging Director’s Address Stephen Hampson

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Our vision: to transform seed-stage companies into real-world success stories by following a proven investment pathway.

Financial Snapshot

14mNumber of shareholders increased from 7 at 30 June 2014 to 121 by 30 June 2015*.

*includes new shareholders whose shares remain held by Powerhouse Venture Managers Limited in trust or custody.

Share Capital $Share Capital increased from $1,000 in 2014 to $14,276,855 by 30 June 2015.

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Fair value of portfolio $11.8 million at year end 30 June 2015.Through the year Powerhouse successfully executed a number of staged capital-raisings and is well positioned to develop as a unique Australasian company that commercialises innovation.In February 2015 Powerhouse completed the ‘roll-up’ of Powerhouse Limited Partnerships 1,2,3 and 4 and ended the year with the acquisition of the CRIS Limited co-investment portfolio.

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Powerhouse’s net assets ended the year at $13.9 million, following the successful acquisition of the investment interests of the four Powerhouse Limited Partnership portfolios as well as CRIS Limited’s investment portfolio. The roll-up of Limited Partner and co-investment interests of CRIS Limited, coupled with substantial capital-raising activity has capitalised Powerhouse at $13.9 million. Powerhouse now directly holds substantial interests in a number of early stage ventures.

Net Assets Growth

13mNet Assets increased from $343,960 at 30 June 2014 to $13,856,610 by 30 June 2015.

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The Powerhouse portfolio fair value has grown at an average rate of 35% year-on-year.

Portfolio Growth

2010 2011 2012 2013 2014 2015

$0.4m

$1.3m

$4.7m

$6.3m

$12.0m

$2.3m

Fair Value Capital invested Existing portfolio

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Powerhouse changed its business model during the year ended 30 June 2015.Instead of sourcing revenue only from historical sources (incubation fees, fees for services, capital raising fees etc), Powerhouse has transitioned to generating revenue from the growth in value of its investment portfolio.

Revenue

2.0m

3.8mTotal Income 30 June 2015 $3,848,135

Revenue Growth

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Our Strategic Pathway $5.6million capital raise closed today Cornerstone entry - up to $15 million IPO - March 2016 - June 2016 Dual listing (NZX and ASX) IPO raise up to $40 million Increased portfolio holdings Expansion to Australia

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The Challenge: Access to University IPWe pioneered the concept of a long-term partnership model with universities and have arrangements covering a number of New Zealand’s leading universities and research intensive organisations.

Tijs Robinson Investment Manager Engineering and clean tech

Melissa Yiannoutsos Investment Manager Life sciences

Steve Silvey Investment Manager Medical devices and engineering

Anya Hornsey Investment Manager Engineering investment

Ruth Appleby Investment Analyst Biotech

Charlie Tomlinson Investment Analyst Engineering and agri-tech

Will Barker Investment Manager Biotech

Jennifer Anderson Investment Manager Life sciences

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Our approach: a 7-step approach to identifying breakthrough opportunities

2 3 4 5 6 7determine the job-to-be-done, what are customers trying to do?

establish how customers value solutions, what outcomes are important and unsatisfied?

assess freedom to operate and barriers to entry

determine key technical and market assumptions and assess cost to verify

seek third party validation from world experts and local customers

rank the opportunity against the investment pipeline and criteria

identify world-class technology with potentially disruptive applications

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Powerhouse has a proprietary methodology for assessing potentially disruptive innovations. When there is no product to do market testing with, identifying breakthrough opportunities requires a specialised approach

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Investment Thesis: a diversified portfolio

Pre-seed Seed Post-seed

Stage Diversity Forecast 80% success rate.

Research-generated IP from eight universities

6–9 ventures entering the portfolio per annum

Forecast50% tech and 50% biotech We have a highly

advantageous position to assess the merits of further investment into portfolio companies given our well-established and in-depth understanding.

Co-investment capital attracted to the venture. Powerhouse looks to maintain its position when the investment is justified.

5–7 year timeline

Forecast 20% by number becoming public companies (50% by value)

Limited number of ventures entering pipeline to ensure sufficient focus and attention (6–9 per annum)

Low valuation owing to high perceived risk. A small investment gains a significant shareholding.

Sect

or d

iver

sity Information and

Communication Technologies

Thinking cactus Fluent Scientific

Motim ModlarTech

nolo

gyBi

otec

hnol

ogy

Koti Photonic

Solar Bright Veritide Invert Robotics

ArcActive Hydroworks Syft

Cleantech and Engineering

Agritech and Environmental

Lasadex CropLogic

Medical and Healthcare

Tiro Lifesciences Certus Bio

MARS Bioimaging

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Invert Robotics is ideally placed to capture global tank inspection markets with unique technology, existing multinational blue chip customers, a scalable business model and first to market positioning.

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HydroWorks designs and manufactures world-class hydropower turbines and related equipment for electricity generators, using world-class turbine design methods. It is aiming to become listed in 2016.

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CropLogic provides growers and processors with crop growth forecasts for optimal productivity, using crop models and high-quality soil, climate and crop imaging input data.

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MARS Bioimaging is bringing ‘colour’ to medical x-ray imaging, providing novel information that will enable clinicians and preclinical researchers to better understand health problems and develop new treatments.

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Annual General Meeting28 October 2015