Digimarc Corporation · NASDAQ:DMRC
Digimarc — Security Growth Conference 2008
20 slides from Digimarc's conference presentation, Mar 4, 2008
Slide 1: Enabling Trusted Relationships
Enabling Trusted Relationships Security Growth Conference March 4-5, 2008 Copyright © 2008 Digimarc Corporation
Slide 2: Safe Harbor Statement
Safe Harbor Statement With the exception of historical information contained in this presentation, the matters described herein contain certain “forward-looking statements” that are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statement
Slide 3: Agenda
Agenda Overview Historical financials ID Systems Media Identification and Management Market Potential Growth Drivers Forecasts Investment Highlights Copyright © 2008 Digimarc Corporation
Slide 4: Overview
Overview Identity Management Leading supplier of government-issued credentials in North America World leader in driver licenses ~90% of 2007 revenues New federal law – REAL ID Media Identification and Management Pioneer and worldwide leader in digital watermarking and related technologies
Slide 5: Financial Trends: 2005-07
Historical Financial Performance 120 100 2005 2006 80 2007 Projected 60 40 20 0 -20 -40 Revenues | Net Income (Loss) | EBITDAS Financial Trends: 2005-07 Copyright © 2008 Digimarc Corporation
Slide 6: Leading Supplier of Secure Government-issued IDs
Leading Supplier of Secure Government-issued IDs Enormous global market No dominant supplier Wide range of products, from safety paper to smart cards Growth and maturation of our brand and product strategy increasing our competitive capabilities Copyright © 2008 Digimarc Corporation
Slide 7: Largest Supplier of Secure Credentials in North America
Largest Supplier of Secure Credentials in North America Full issuance system supplier 2/3 of all U.S. driver licenses Our IDs provide access to many services and privileges: driving; travel; secure facility access; credit and banking; commercial transactions; border crossing Prime beneficiar
Slide 8: State of the Art in Driver Licenses
State of the Art in Driver Licenses Popular Science | April 2007 Copyright © 2008 Digimarc Corporation
Slide 9: DL/ID Issuance Workflow
DL/ID Issuance Workflow Copyright © 2008 Digimarc Corporation
Slide 10: REAL ID: Increased Investment in Driver License
REAL ID: Increased Investment in Driver License Based on Sound Identity Management Principles Enhances Homeland Security, Transportation Safety, and Economic Security Law passed May 2005; final regulations published January 2008 Mandates minimum standards for all aspects of DL issuance process
Slide 11: Enhanced Driver License for Border Crossing
Enhanced Driver License for Border Crossing DHS and Washington DOL pilot offers Enhanced Driver License (EDL) alternative to the Passport for sea and land border crossing • Washington DOL selected Digimarc to implement their RFID-enabled EDL • Expanded value of DL – Single credential with multiple
Slide 12: Media Identification and Management
Media Identification and Management Imperceptible, pervasive, persistent Machine-readable data Banknotes and Secure IDs In video, audio, images and print Communicate, authenticate, and identify media objects Music, Movies and Photos Provide seamless connections to digital device functions
Slide 13: Digimarc Intellectual Property Licensing Model
Digimarc Intellectual Property Licensing Model Built world class licensable IP asset Assembled highly skilled licensing organization Established reputation Mobile Licensed numerous business partners Images & Print Seeded the market Time to harvest ROI, while Music & continuing IP and mar
Slide 14: Nielsen and Digimarc to Revolutionize Internet Entertainment
Nielsen and Digimarc to Revolutionize Internet Entertainment Internet Video Views Hit Record 10 Billion in December (Comscore) Watermarking as basis for new distribution, security, marketing, and consumption models for entertainment on the Internet The Nielsen Company measures markets, media a
Slide 15: Market Potential | Government-issued Credentials
Market Potential | Government-issued Credentials Worldwide United States Identity Cards REAL ID DL • 2007: $1.7 Billion • 2008: $143M • 2012: $4.1 Billion • 2009: $180M Driver Licenses • 2010: $258M • 2007: $327M • 2011: $298M • 2012: $542M • 2012: $329M Voter Registration Enhanced DL • 20
Slide 16: Market Potential | Media Identification and Management
Market Potential | Media Identification and Management 700 Digital Watermarking Market $681M Digimarc Estimate 600 Market Estimate Source: Kirstein, Mark. Beyond Traditional DRM: Moving to Digital Watermarking & Fingerprinting in Media. $504M Multi Media Intelligence, January 2008. 500 Digimarc Esti
Slide 17: Key Growth Opportunities
Key Growth Opportunities REAL ID ambiguities have been resolved Normal US driver license technology investments that have been deferred will get done REAL ID requires “material compliance” by December 2009 Enhanced Driver License solution rolling out Global market for Secure IDs in early a
Slide 18: Financial Projections: 2008 and Beyond
Financial Projections: 2008 and Beyond 2008 • ID growth is largely dependent on REAL ID resolution • Watermarking revenue growth rate should more than double • Operating Cash Flow should continue to improve • EPS will lag cash measures due to increases in depreciation, stock compensation, and inve
Slide 19: Investment Highlights
Investment Highlights Stock Symbol: Nasdaq: DMRC Principal Locations: Beaverton, OR; Burlington, MA; Fort Wayne, IN Revenue Run Rate: $110 million Three years of consistent significant improvement in financial Growth Drivers: performance Good balance sheet Strong, stable management team Solid recurr
Slide 20: Enabling Trusted Relationships
Enabling Trusted Relationships Security Growth Conference March 4-5, 2008 Copyright © 2008 Digimarc Corporation