Safeguard Scientifics, Inc. · OTC:SFES
Safeguard Scientifics — Shareholder Meeting (June 2004)
13 slides from Safeguard Scientifics's shareholder meeting presentation, Jun 14, 2004
Slide 1: Annual Meeting June 11, 2004
Safeguard Scientifics, Inc. ANNUAL MEETING June 11, 2004
Slide 2: Forward Looking Statements
Except for the historical information and discussions contained herein, statements contained in this presentation may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Our forward- looking statements are subject to risks and uncertain
Slide 3: Additional Information & Where to Find It
In connection with the previously announced CompuCom Systems, Inc. merger, both CompuCom and Safeguard will be filing proxy statements and other relevant documents with the Securities and Exchange Commission (SEC). STOCKHOLDERS OF COMPUCOM AND SAFEGUARD ARE URGED TO READ THEIR RESPECTIVE PROXY STATE
Slide 4: Annual Meeting June 11, 2004
Transforming Safeguard ANNUAL MEETING June 11, 2004 3
Slide 5: Safeguard Focus Refined the Business Model
Transforming Safeguard 4 Inception Concept Proof Market Acceptance High Growth Maturity Technology Risk Market Risk Revenues Safeguard Focus Refined the Business Model
Slide 6: Freed Up Capital and Reduced Corporate Costs
Transforming Safeguard Freed Up Capital: > Divested non-strategic assets > Received fund distributions > Generated $130.6 million in net cash proceeds (a) Reduced Corporate Costs 54% (b) (a) From sales of companies and distributions from funds 2002-3/31/04 (b) 12/31/01 to 12/31/03 5
Slide 7: Restructured Long-term Debt
Transforming Safeguard Restructured Long-term Debt: Issued $150 million of 2.625% Senior Subordinated Debentures with stated maturity of 2024 Retired $145 million of 5% Subordinated Notes due 2006 Result: > Lowered annual interest costs by $3.5 million > Extended maturity of long-term debt 6
Slide 8: Reinvested Capital
Transforming Safeguard Reinvested Capital: Alliance Consulting: Acquired 100% (2002) Mantas : Increased ownership (84%) and funded growth ChromaVision (NADSAQ: CVSN): Increased ownership (57%) and funded growth 7
Slide 9: Proposed Sale of CompuCom
$4.60 per common share $15 million for preferred shares Total gross proceeds to Safeguard: $128 million* Closing anticipated late in third quarter 2004 Proxy will contain important information Use of proceeds Changes Safeguard dramatically * Excludes estimated transaction costs of approximately $1 m
Slide 10: Safeguard's Strategy
Invest in time-to-volume stage companies Focus on Business Decision Solutions and Healthcare Life Sciences Provide operating and management direction Offer other resources Build "acquirable companies" Safeguard's Strategy 9
Slide 11: Mega Trends
Mega Trends Dramatic reduction in computing, storage & communication costs Increasing regulatory and compliance demands Aging population 10
Slide 12: Looking Ahead
Safeguard is financially sound Focus on operating Strategic Companies Step up search for acquisitions Provide additional transparency Communicate regularly Looking Ahead 11
Slide 13: Annual Meeting June 11, 2004 Q & A
ANNUAL MEETING June 11, 2004 Q & A
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