1. Making More from Innovation Bioscience Enterprise Forum 16 August 2013 Presentation by Hon Ruth Richardson

2. Universal truths Innovation knows no bounds The world is within our reach in real time Individuals invent, not governments Science matters, but Sales matter even more

3. Universal checks and balances Science gives us a window on the possibilities, but Regulators and consumers govern where we can and should play profitably

4. Shifts in the business landscape home and away Economic geography undergoing rapid transformation NZ capital markets looking beyond the stock standard Time to stage a business explosion on the back of our intellectual smarts

5. Case Study Selling trust, not just milk Synlait Milk Ltd.

7. Synlait Milk Limited Independent Canterbury dairy manufacturer focused on supplying higher value dairy ingredient products to leading global milk- based health and nutrition companies. Pre-IPO Shareholders 51%Bright Dairy & Food Co. 49%Synlait Ltd. Post-IPO Major Shareholders 39.1%Bright Dairy & Food Co. ~25%Synlait Ltd. 8.4%Mitsui & Co. 7.5%Royal FrieslandCampina ~20%Public - institutions and retail Share Price 16 th August

8. Synlait Milk Limited – IPO impact IPO Opening10 th July Closing19 th July Final Price$2.20 Shares146,341,197 Capital Raised *Primary *Secondary NZ$75 million NZ$38 million Market CapitalisationNZ$322 million Activity (on 15 th August) Trades14 Value$103,342 Volume37,009 Capitalisation$409,292,000 Trading Performance$2.79

9. Challenge to NZ Inc thinking Time to shatter the glass ceilings of: -Capital market constraints -Talent market constraints -Traditional views of what success looks like

10. Challenge to business thinking Not enough to rave about the size of the prize, addressable market etc Promise and potential don’t cut the mustard Execution is everything, plus a healthy dose of courage and commitment

11. Case Study Jade incubated spin-off The Wynyard Group

13. The Wynyard Group Multi-national software and solution company that owns, develops, markets and sells advanced software products and services that help protect companies and countries from global threats, crime and corruption. Pre-IPO Shareholders 54.5%Skipton Building Society 25.0%USA Health Investors 20.5%NZ Investors Post-IPO Major Shareholders 24.5%Skipton Building Society 11.3%USA Health 9.1%Existing NZ Investors 56.2%New NZ shareholders: -Milford Asset Management -Salt Funds Management -Harbour Asset Management -AMP Capital Investors -Zeus Management -Sam & Gareth Morgan Share Price 16 th August

14. Wynyard Group – IPO impact IPO Opening24 th June Closing12 th July Final Price$1.15 Shares370,000 Capital RaisedNZ$65 million Market CapitalisationNZ$118 million Activity (on 15 th August) Trades9 Value$26,647 Volume21,165 Capitalisation$129,235,000 Trading Performance$1.26

15. Shifts in the science landscape Collaboration is the new normal Being brave is the new catch-cry Platforms of promise backed Public policy, funding and structural shifts gather pace

16. Case study KiwiNet Style – maverick in inception, quickly attained critical mass, and now has the mo Mission – to create the best system for turning research ideas into commercial value Reality – a virtual network, collaboration catching, silos shrinking

17. What money can’t buy Government intervention - necessary, but not sufficient Bring on the X-Factor ingredients – a NZ business talent quest - the “Z-factor” Attitude, boldness, creativity, daring…

18. So, for my money Public policy rev up: “reform had to be consistent, considered and constant, though in small doses”- why not try bold Bill? Break capital market ceiling on biotech: 2013 and not one NZX biotech listing Grow and attract Z-factor types: cities are where ideas go to have sex – so Auckland how about it?

19. Bio Ent Ltd Case study Collaborators; Uniservices and KiwiNet PRO’s Platform – biological medicines Hatched circa 2014 PSAF funding 2015 First round VC capital 2016 Pre-IPO capital 2017 NZX debut 2018 Five year roll-out? – don’t bet against it!