Digimarc Corporation · NASDAQ:DMRC
Digimarc — Investor Presentation (May 2020)
19 slides from Digimarc's investor presentation, May 2020
Slide 1: Investor Update
Investor Update May 2020 Bruce Davis Charles Beck Chairman & CEO CFO 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: Navigating the COVID-19 Pandemic
Navigating the COVID-19 Pandemic Creates new urgency for responsible, connected packaging across retail supply chain with focus on: • Stores, employees and shoppers' safety • Store and supply chain efficiencies • Merchandising and education • Omnichannel shopping and delivery Source: McKinsey - How
Slide 4: Digimarc for Packaging
Digimarc for Packaging Enhanced Package • Low contrast two-dimensional data carrier, like QR and DataMatrix • Greater data capacity than UPC • Each tile approximately the size of thumbnail • Low contrast allows for massive redundancy 4.75” • Redundancy improves ease of use, reliability and efficienc
Slide 5: Beyond the Barcode
Beyond the Barcode PAST PRESENT NOW & FUTURE Digimarc Marketing RFID/inventory Beyond the Barcode: Digimarc Makes Retail Operations Safer and More Profitable POS Supply Supply All Use Cases Chain Chain/Inventory/ POS 5
Slide 6: The Digimarc Platform
The Digimarc Platform Every media object a specific Sustainable Competitive Advantage IoT-ready digital identity • 25 years of R&D: digital watermarking; automatic ID of media Software to put structured data • Security for banknotes, movies, and digital images; audience measurement for radio and TV
Slide 7: Digimarc Platform
Digimarc Platform The Digimarc Platform is a powerful suite of automatic identification and data capture (AIDC) software and services that provide the reliability and efficiency to support multiple business applications. Applications & Use Cases Security Brand Protection Traceability Sustainability
Slide 8: Enormous Target Market
Enormous Target Market Grocery Retail — $50 Billion+ TAM for Digimarc software and services • Retail store operations safety, efficiency, and marketing; supply chain visibility, consumer engagement • Emerging role in food safety and waste reduction, supply chain management, plastics recycling, and C
Slide 9: Safe, Convenient & Efficient Grocery with Digimarc
Safe, Convenient & Efficient Grocery with Digimarc Enables low touch, high-efficiency shopping Use Case Benefit Stores & Safety • Improves & increases efficiency for all forms of checkout and reduces congestion in stores • Supports scan-and-go models for less person-to-person contact • Reduces hand
Slide 10: Retail Execution Strategy
Retail Execution Strategy Supply software, Packaging & Retailers Integrators and Multiple use case More packages training and Label suppliers acquire/update solution benefits drive and labels, support to provide scanning providers adoption and uses, and packaging & packaging to infrastructure suppor
Slide 11: Expanding Global Supplier Network as Catalyst
Expanding Global Supplier Network as Catalyst • 700+ Supplier Network - Numerous pre-media and packaging solutions leaders - Top 7 AIDC suppliers • Seven of Top 11 Global Consumer Brands • Two of Top 10 US Retailers • Thousands of Printers • Japan making progress despite minimal direct investment Su
Slide 12: Fueling Retail Adoption
Fueling Retail Adoption Ciba & Kimberly-Clark + ) COLGATE-PALMOLIVE ay Unidoer % 8 NZ ,/ donneak PEPSICO “BRANDS: Mills HEIVES nr P&G SUN-MAID. Wegmans Walmart ala id Dicimarc | @
Slide 13: Supply Chain Management Example: From Farm to Recycle
Supply Change Management Example: From Farm to Recycle Single AIDC platform enables traceability throughout demand and supply cycles Farm • Harvesters can reliably scan clamshells, corrugated trays, and pallets, from fields to trucks Production Facility Production • Product packaging, trays, pallets
Slide 14: Digimarc Sustainability Initiatives
Digimarc Sustainability Initiatives HolyGrail 2.0 • Initial HolyGrail project generated significant industry exposure and recognition, including a segment with the BBC, invitations to participate in the Consumer Goods Forum’s Plastic Waste Coalition of Action and recycling initiative of the Consumer
Slide 15: Working Capital Management
Working Capital Management Income is preferred source of working capital COVID-19 Impact on Working Capital Q1 Financial Summary • Total revenue up 9%; Retail bookings up 110%; Retail revenue up • Impact not clearly negative; substantial uncertainty persists 70%; Gross margins up 2% vs Q1 2019 • Sof
Slide 16: Navigating 2020
Navigating 2020 • Focus of investment is grocery, the most robust sector of the economy; pitching solution for “low touch shopping” • “New normal” pressures retail operating margins with reduced traffic due to social distancing and other safety overhead • Greater emphasis on efficiency and reducing
Slide 17: Summary
Summary Validated Mission Critical Compelling Retail & CPG Commitment to Enormous Market and Proprietary Technology Value Proposition ESG Attractive Business Model • High-security digital • Improves retail efficiency • Help reduce waste, reduce • Massive TAM under watermarking pioneer and consumer e
Slide 18: Stay Engaged, Stay Informed
Stay Engaged, Stay Informed Digimarc in the News Charles Beck Press Releases EVP, CFO Phone # 503.469.4721 Charles.Beck@digimarc.com Sign up for our newsletter: Digimarc Digest Follow us on social: Twitter LinkedIn Facebook Instagram Read our blog: Digimarc Perceptions 18
Slide 19: ©2020 Digimarc Corporation
____________________________________________________________________________________________________________ ©2020 Digimarc Corporation · www.digimarc.com 19