Digimarc Corporation · NASDAQ:DMRC
Digimarc — 20th Annual Roth Capital Partners OC Growth Stock Conference (February 2008)
20 slides from Digimarc's conference presentation, Feb 19, 2008
Slide 1: Enabling Trusted Relationships
Enabling Trusted Relationships 20th Annual Roth Capital Partners OC Growth Stock Conference February 19, 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: Overview
Overview Identity Management Leading supplier of government-issued credentials in North America World leader in driver licenses ~90% of 2007 revenues Media Identification and Management Pioneer and worldwide leader in digital watermarking and related technologies More than 350 U.S. patents
Slide 4: 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 5: 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 6: 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 7: State of the Art in Driver Licenses
State of the Art in Driver Licenses Popular Science | April 2007 Copyright © 2008 Digimarc Corporation
Slide 8: DL/ID Issuance Workflow
DL/ID Issuance Workflow Copyright © 2008 Digimarc Corporation
Slide 9: 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 10: 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 11: 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 12: 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 13: 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 14: Target Markets
Target Markets Government-issued Credentials Driver licenses Voter IDs Other government-issued credentials Media Identification and Management Banknote counterfeit deterrence Commercial photography license management Piracy deterrence for movies, music, and television Improved manageme
Slide 15: Government-issued Credentials Market: 2007-2012
Government-issued Credentials Market: 2007-2012 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 • 200
Slide 16: Market Potential | Media Identification Management
Market Potential | Media Identification 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 Estimate
Slide 17: Key Growth Opportunities
Key Growth Opportunities REAL ID ambiguities have been resolved Normal 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 adopter stage creat
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: Financial Highlights
Financial 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 recurri
Slide 20: Enabling Trusted Relationships
Enabling Trusted Relationships 20th Annual Roth Capital Partners OC Growth Stock Conference February 19, 2008 Copyright © 2008 Digimarc Corporation
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