Digimarc Corporation · NASDAQ:DMRC
Digimarc — A.G. Edwards 2nd Annual Emerging Growth Conference 2007
24 slides from Digimarc's conference presentation, Sep 18, 2007
Slide 1: Enabling Trusted Relationships
Enabling Trusted Relationships A.G. Edwards 2nd Annual Emerging Growth Conference The New York Palace Hotel, New York, NY September 18-19, 2007 Copyright © 2007 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: Our Mission: Enabling Trusted Relationships
Our Mission Enabling Trusted Relationships Leading provider and innovator of technologies and solutions to secure and advance important economic and social relationships. Digital watermarking Secure ID solutions - Prevent counterfeiting - Enhance transportation safety - Protect media content from -
Slide 4: A Customer-Focused Company
Digimarc Values Drive Profitable Growth A Customer-Focused Company Earn lifetime relationships | Exhibit honesty and integrity | Train our employees Accept personal accountability for commitments | Maintain respectful relationships Experts in our field | Leading innovator in technology and processes
Slide 5: Secure Media and Identity Management
Secure Media and Identity Management Digital Watermarking INTELLECTUAL Pioneer and worldwide leader in digital PROPERTY watermarking Anti-counterfeiting Systems Banknote counterfeit deterrence system Foster large-scale adoption under license to DMRC patents More than 300 U.S. patents Movies
Slide 6: Digital Watermark Identification for Media Objects
Digital Watermark Identification for Media Objects Imperceptible, pervasive, persistent Banknotes Machine-readable data and Secure IDs For video, audio, images and print Format and domain Music, Movies and Photos independent Communicate, authenticate, and identify media objects Provide s
Slide 7: Digital Watermarking Strategy
Digital Watermarking Strategy Built world class licensable IP asset Assembled highly skilled licensing organization Mobile Established reputation Images & Print Licensed numerous business partners Seeded the market Music & Time to harvest ROI, while Radio continuing IP and market Counter
Slide 8: 21st Century "DRM"
21st Century “DRM” 1st generation DRM failure Entertainment media distribution has gone “non- linear” Entertainment industry gravitating to digital watermarking across production and distribution Social networking and P2P pose great threats and opportunities for media companies Watermarkin
Slide 9: New Macro Economic Model of Entertainment
New Macro Economic Model of Entertainment Consumer less inclined to buy “copies” of entertainment Real thing they pay for is “entertainment experience” They want minimal restrictions on when, where, and how Tech industry is delivering increased entertainment value by mitigating these inhibit
Slide 10: Digital Watermarking Investment Opportunity
Digital Watermarking Investment Opportunity Industry leading technology and IP portfolio Rate of adoption is accelerating across various applications Favorable market conditions in media production, distribution and consumption Maturation of multi-year market development for IDMarc and Digim
Slide 11: Leading Supplier of Secure Government-issued Credentials
Leading Supplier of Secure Government-issued Credentials Leading supplier of government-issued credentials in North America 2/3 of all US driver licenses; prime beneficiary of REAL ID in America Driver licenses, voter IDs, national IDs, etc. in more than 25 countries Our IDs enable many serv
Slide 12: Digimarc Identity Mgmt Solutions Offers Value & Growth
Digimarc Identity Mgmt Solutions Offers Value & Growth Acquired basic assets from Polaroid in bankruptcy sale December 2001 Millions invested to improve quality of assets and build financial infrastructure Built marketing and product strategy from bottom up Displaced old model of contract en
Slide 13: Virtuous Circle of Driver License Investment and Value
Virtuous Circle of Driver License Investment and Value Value Investment Copyright © 2007 Digimarc Corporation 13
Slide 14: Digital Watermarking Enhances Driver License Inspection
Digital Watermarking Enhances Driver License Inspection Unaided visual inspection is inadequate due to: • More than 200 different U.S. DL designs • Unfamiliarity with out-of-state licenses • Skill and experience required to be able to spot a fake ID • Darkness or areas with limited visibility • St
Slide 15: State of the Art in Driver Licenses
State of the Art in Driver Licenses Popular Science | April 2007 Copyright © 2007 Digimarc Corporation 15
Slide 16: Secure ID Lifecycle
Secure ID Lifecycle Registration and Proofing Æ Multiple perspectives on the applicant Æ Applicant data verification Æ Document authentication and archiving Æ Biometric identification Secure Credential Æ Automated knowledge • Advanced card materials testing • Secure card architecture • Digital wat
Slide 17: 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; regulations being finalized Mandates minimum standards for all DWM aspects of DL issuance process DWM DWM DWM
Slide 18: DHS REAL ID Concept of Operation
DHS REAL ID Concept of Operation REFERENCE CLEARANCE DATABASES EMPLOYEE CLEARANCE CHECKS TRAINING IAFIS DOJ/FBI EMPLOYEES NCIC EVVE NAPHSIS FACILITIES PRODUCTION CARD STOCK SAVE DHS/USCIS SECURITY ISSUANCE CCD/ DoS PIERS CUSTOMERS REAL ID CARD SSOLV SSA DATA CUSTOMER DATA AUTHENTICATION VERIFICATION
Slide 19: Enhanced Driver License for Border Crossing
Enhanced Driver License for Border Crossing DHS and Washington DOL pilot to allow Enhanced Driver License (EDL) to be used instead of Passport to re-enter US through sea and land border crossings Explicit recognition of National Security role of DL Washington DOL selected Digimarc to implement
Slide 20: Secure Credential Investment Opportunity
Secure Credential Investment Opportunity Leading supplier of government- issued credentials in North America Value of, and funding for, Secure IDs is increasing REAL ID may dramatically increase U.S. market Gain greater “share of pocket” by expanding portfolio of products and This credential
Slide 21: 2007 Strategy Execution
2007 Strategy Execution Achieve sustained profitable growth • Trusted and responsive supplier • Wise R&D investment • Strategic partnerships • Business process and workforce improvements Revenue upside • REAL ID, competitive wins, system upgrades, expanded offerings • International ID markets •
Slide 22: Exciting Growth Prospects
Exciting Growth Prospects REAL ID GUIDANCE RANGE: 5-10% International ID Digital Watermarking 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Copyright © 2007 Digimarc Corporation 22
Slide 23: Financial Highlights
Financial Highlights Stock Symbol: Nasdaq: DMRC Principal Locations: Beaverton, OR; Burlington, MA; Fort Wayne, IN Revenue Run Rate: More than $100 million Leading Indicators: EBITDA and other measures of cash flow Increasing financial leverage Growing “share of pocket” Competitive wins in s
Slide 24: Enabling Trusted Relationships
Enabling Trusted Relationships A.G. Edwards 2nd Annual Emerging Growth Conference The New York Palace Hotel, New York, NY September 18-19, 2007 Copyright © 2007 Digimarc Corporation
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