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
International
President and CEO
Jim Datin
EVP and
Managing Director
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 JA 3 Partners
Boards
SFE Board of
Directors
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11. Recent Success Stories
Cash-on-Cash
Acquired By Proceeds*
Return
$36M 4x
$138M 13x
$36M 3x
Return Potential Could
Approach 8x***
$208M** 3x
Market Cap Increased 5x
* Includes amounts held in escrow as of March 31, 2012 which are deemed likely to be
realized during 2012, if any, but not unearned milestones / earnouts, 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
• 1000+ Eye Care Professionals Signed On
• SFE Deployed $27.1M since 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 Five Acquisitions since mid-2009
• 2011 Revenue Increased 40% YoY to ~$40M
• Inc.5000 Three Consecutive Years; Ranked #10 Fastest Growing Co. in NJ
• SFE Deployed $15.3M since November 2006
Market for AHS' Services Approx. $4B - $8B1
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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
• Named #1 Demand-Side Platform Vendor by Forrester Research
• Strong Growth Continues
• 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 Revenue*
25 Board Seats Across 16 Companies
15 Companies Generating Revenue
4 Companies EBITDA Positive
1 Company Filed NDA
Deployed $177M in Current Partner Companies
Realized $635M Since January 2006
Strong Partner Company Satisfaction
* Aggregate revenue guidance for 2012 and prior years, presented
above, reflects revenue on a net basis. 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.
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17. Financial Highlights
• Net Cash, Cash Equivalents and Marketable Securities
– $188.5M at 3/31/12 vs. $211.9M at 12/31/11
• Q1’12 Primary Uses of Cash = $25.9M
• 2012 Projected Uses of Cash = $100M to $150M
– Capital Deployment into New Partner Companies
– Follow-on Funding for Current Partner Companies and Penn Mezzanine
Participations
– Corporate Expenses
– Platform Expansion
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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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