Digimarc Corporation · NASDAQ:DMRC
Digimarc — Needham Conference 2022
23 slides from Digimarc's conference presentation, January 2022
Slide 1: Introduction to Digimarc
Introduction to Digimarc Product Digitization Enabling Digital Transformation January 2022 (Nasdaq: DMRC) 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation includes “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended, which reflect management’s current view with respect to future events and per
Slide 3: What is Digital Watermarking
What is Digital Watermarking Color Science Communication • Digital Watermarking is the science of “hiding” & Print Theory Technology information about an item in the item itself • There are two principal components of our automatic identification platform: encoding Cryptography Information Theory (h
Slide 4: Modern Packaging
Modern Packaging PAST PRESENT NOW/FUTURE RFID QR Data Matrix UPC/EAN UPC/EAN Digimarc Covert, ubiquitous and redundant symbology that powers Digital Transformation 4
Slide 5: How is Digimarc Applied in Print?
How is Digimarc Applied in Print? Encoder software Thumbnail-size applies tiles to graphics tile over entire surface Looks Like This Pieces of multiple tiles • Uses existing pixels can be combined to • No special inks recover a signal • No special printing process Performs Like This Exaggerated view
Slide 6: How is Digimarc Applied in Substrate?
How is Digimarc Applied in Substrate? μm (micron) Thumbnail-size Height topological tile variations embedded via molds or lasers Looks Like This • Uses existing substrate Pieces of multiple tiles • No special materials can be combined to • No special manufacturing recover a signal process or tools P
Slide 7: Barriers to Entry
Barriers to Entry Large, high Proprietary Ecosystem of Network effects Endorsements quality strategic algorithms, trade enabling technologies • Multiple benefits from a single from trusted patent portfolio secrets, and • Many hardware vendors digital watermark (Instance gatekeepers unique technical
Slide 8: Hear from Digimarc and EVRYTHNG executives about their combination
Hear from Digimarc and EVRYTHNG executives about the significance of their combination and a future that is better together Better Together Shared Vision Turnkey Solutions Making a Meaningful Impact Any & All Identifiers 8
Slide 9: An End-to-End Platform to Transform Business with Product Intelligence
An End-to-End Platform to Transform Business with Product Intelligence Raw Owned Consumer Materials Mfg Distribution Traceability Brand Integrity Channel Physical Items Digital Twins Retail Consumer Recycle Cloud-to-Cloud On Premise Machine Learning Reporting Recommerce Item Level Data Collection Th
Slide 10: Benefits of Combo
Benefits of Combo • Deliver complete (and unique) solutions, increasing ASPs and decreasing friction of adoption • Power up our ability to sell stand-alone solutions with future cross-sell/up-sell opportunities • Gain entrée into a nascent, high-potential market via the market and thought leader • E
Slide 11: Transformation: From Tools to Products
Transformation: From Tools to Products 11
Slide 12: Digimarc Product Authentication/Anti-Counterfeiting
Digimarc Product Authentication/Anti-Counterfeiting Detect Counterfeit Consumer and brand inspector authentication, using real- time rules and machine learning algorithms. Track Product Diversion Use crowdsourced data capture to exponentially increase visibility across all markets and minimize loss
Slide 13: Digimarc Recycling
Digimarc Recycling • Improve sortation accuracy, efficiency and precision at each step of the process • Create more and higher quality recyclate Sensors detects digital • Address increasing government Incoming watermark Air jet sorts regulation and taxation feed to be plastics recycled according to
Slide 14: Digimarc Recycling: Validated by HolyGrail 2.0
Digimarc Recycling: Validated by HolyGrail 2.0 • The Digital Watermarks Initiative HolyGrail 2.0 – driven by AIM, Sample of HolyGrail members: powered by AEPW • Objective is to prove the viability of Digimarc’s digital watermarking technology for accurate sorting and the business case at large scale
Slide 15: Financial Update
Financial Update 15
Slide 16: Financial Snapshot: YTD 9/30/21 vs YTD 9/30/20
Financial Snapshot: YTD 9/30/21 vs YTD 9/30/20 $19.4MM Revenue (5% Revenue growth) COMMERCIAL REVENUE MIX BOOKINGS TTM SHIFT TO 27% Growth TREND COMMERCIAL in Commercial Bookings 16% Growth in Commercial Revenue 76% Gross Margin on Subscription Revenue $52.5MM Cash & Investments $0.0MM Debt 16.9MM C
Slide 17: Commercial
Commercial Value Proposition • More reliable, efficient auto ID of packaging and other media for an ever-growing list of use cases Customer Relationships • Top retailers and CPGs; Walmart, Netto Marken-Discount, P&G $8.1MM YTD 9/30/21 Revenue and Unilever • International progress in Europe with Holy
Slide 18: EVRYTHNG – Product Cloud (acquired January 3, 2022)
EVRYTHNG – Product Cloud* (acquired January 3, 2022) Value Proposition • Product Cloud provides real-time data intelligence of consumer products throughout the product lifecycle Customer Relationships • Consumer brands include Ralph Lauren, Puma, Unilever, Moet Hennessy, Sealed Air, L'Oreal • Applic
Slide 19: Government
Government Value Proposition • Globally-deployed banknote anti-counterfeiting system Customer Relationships • Consortium of leading Central Banks - 23-year relationship building counterfeit deterrence system $11.3MM YTD 9/30/21 Revenue - Services contract runs through 2024, with five-year extension
Slide 20: Committed to Transparency
Committed to Transparency ESG Strengths and Achievements: Governance structure supports ESG integration: • Approach built on ESG as fundamental element of strategy Governance, Nominating, and Board Sustainability (GNS) Committee • Investment in ESG & Corporate Communications has formal ESG oversight
Slide 21: Q&A
Q&A 21
Slide 22: Stay Engaged, Stay Informed
Stay Engaged, Stay Informed Digimarc in the News Charles Beck Press Releases Chief Financial Officer P: +1 503.469.4721 Events IR@digimarc.com Sign up for our newsletter: Digimarc Digest Follow us on social: Twitter LinkedIn Facebook Instagram The Digimarc Blog 22
Slide 23: ©2022 Digimarc Corporation • www.digimarc.com
©2022 Digimarc Corporation • www.digimarc.com 23