Why Own Safeguard?
- Full Value Yet to be Realized
- Ownership Stakes in Exciting Partner Companies
- Top Performance of Proven Team
- Financial Strength, Flexibility and Liquidity
- Strong Alignment of Interests
Forward-Looking Statements
Statements contained in this presentation that are not historical facts are forward looking statements which involve certain risks and uncertainties including, but not limited to, risks associated with the uncertainty of managing rapidly changing technologies, limited access to capital, competition, the ability to attract and retain qualified employees, our ability to execute our strategy, the uncertainty of the future performance of our partner companies, acquisitions and dispositions of additional partner companies, the inability to manage growth, government regulation and legal liabilities and the effect of economic conditions in the business sectors in which our partner companies operate, negative media coverage and other uncertainties as described in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K.
Safeguard does not assume any obligation to update any forward looking statements or other information contained in this presentation.
2. Forward Looking Statements
Statements contained in this presentation that are not historical facts are
forward looking statements which involve certain risks and uncertainties
including, but not limited to, risks associated with the uncertainty of managing
rapidly changing technologies, limited access to capital, competition, the ability
to attract and retain qualified employees, our ability to execute our strategy,
the uncertainty of the future performance of our partner companies,
acquisitions and dispositions of additional partner companies, the inability to
manage growth, government regulation and legal liabilities and the effect of
economic conditions in the business sectors in which our partner companies
operate, negative media coverage and other uncertainties as described in our
filings with the Securities and Exchange Commission, including our Annual
Report on Form 10-K.
Safeguard does not assume any obligation to update any forward looking
statements or other information contained in this presentation.
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4. Why Own Safeguard?
Full Value Yet to be Realized
Ownership Stakes in Exciting Partner Companies
Top Performance of Proven Team
Financial Strength, Flexibility and Liquidity
Strong Alignment of Interests
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5. Experienced Team
Peter J. Boni Online
Software
Prime
Response
President and CEO International
Jim Datin
EVP and Managing
Director, Deal Teams
Steve Zarrilli
SVP and CFO
Brian Sisko
SVP and
General Counsel
John E. Shave III
VP, Corporate
Communications and
Business Development
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6. The Company We Keep
Alliances &
Syndication
Partnerships
Technology &
Life Sciences
Advisory
Boards
SFE Board of
Directors
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11. Recent Success Stories
Cash-on-Cash
Acquired By Proceeds*
Return
$36M 4x
$146M 14x
$36M 3x
Return Potential Could
Approach 8x***
$208M** 3x
Market Cap Increased 5x
* Includes Amounts Held in Escrow, if any, but not Earnout, where Applicable.
** Proceeds include $61M from Sale of CLRT Shares during Q3’09.
*** Based on achievement of difficult earnout provisions.
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13. Case Study: SFE Stake 25%
• Medical Technology Company
• Developed and is Commercializing emPower!
• emPower! Most Significant Change in Eyeglasses Since Bifocal in 1784
• 100M Bifocals and Progressive Lenses Sold Per Year
• Every 1% Penetration = $400M in Revenue for PixelOptics
• 1000+ Eye Care Professionals Signed On
• SFE Deployed Capital in April 2011
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14. Case Study: SFE Stake 40%
• Top 10 Provider of Medical Billing and Practice Management Services
• U.S. Market Opportunity Exceeds $4B Annually
• <20% Physician Practices Outsource Billing and Practice Management
• Gaining Meaningful Scale via Organic Growth and Strategic Acquisitions
• Completed Four Acquisitions since mid-2009
• 2011 Revenue Expected to Exceed $40M
• Inc.5000 Three Consecutive Years; Ranked #10 Fastest Growing Co. in NJ
• Safeguard Deployed $15.3M since November 2006
Market for AHS' Services Approx. $4B - $8B1
1 Billing and Practice Management Service Market (Falcon Capital): $8.0B; Total RCM Market (Wallingford Capital/HBMA, 2007): $4.75 B; Top 10 Billing cos.: $1.0B 14
15. Case Study: SFE Stake 22%
• Provides Enterprise-Class Technology and Services to Advertisers/Agencies
• ‘Bloomberg’ Terminal: Media Buying Platform
• Recognized Industry Leader
• 2011 U.S. Online Advertising Forecast to Grow 20% to $31B
• Revenues Increased 150% from 2009; $100M Current Run Rate
• Expanding Domestic, International Operations
• Strong Client Roster – All Agency Groups, Dozens of Fortune 500
• SFE Deployed $16.9M since July 2009
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16. Safeguard Partner Companies
16 Partner Companies Today
Aggregate Revenues*
25 Board Seats Across 16 Companies
13 Companies Generating Revenue
3 Companies EBITDA Positive
2 Companies Filed NDA
Deployed $177M in Current Partner Companies
Realized $632M Since January 2006 (2.4x CoC)
Strong Partner Company Satisfaction
* Revenue figures utilized for certain companies pertain
to periods prior to Safeguard’s involvement with said
companies and based solely on information provided
to Safeguard by such companies. Safeguard reports
the revenue of its equity method and cost method
partner companies on a one-quarter lag basis.
Aggregate revenue excludes revenue for Crimson
Informatics, Hoopla Software and Medivo.
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17. Financial Highlights
$280M in Cash, Cash Equivalents and Marketable Securities*
– Excluding $18.7M of Cash Held in Escrow
2011 Projected Uses of Cash = $100M to $150M
– Capital Deployment into New Partner Companies
– Follow-on Funding for Current Partner Companies
– Repayment of Senior Convertible Debentures
– Platform Expansion
– Corporate Expenses
* As of 9/30/11
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18. Strategy for Growth
Build Value in Current Holdings
Realize Some Valuable Exits
Replenish The Holdings with Winners
Expand the Platform
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19. Why Own Safeguard?
Full Value Yet to be Realized
Ownership Stakes in Exciting Partner Companies
Top Performance of Proven Team
Financial Strength, Flexibility and Liquidity
Strong Alignment of Interests
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