Digimarc Corporation · NASDAQ:DMRC
Digimarc — Corporate Update (May 2019)
36 slides from Digimarc's corporate update, May 29, 2019
Slide 1: Investor Update May 29, 2019
Investor Update May 29, 2019 Bruce Davis Chairman & CEO Exhibit 99.1
Slide 2: Safe Harbor Statement
Safe Harbor Statement Please note that during the course of this event we will be making certain forward-looking statements, including those regarding: revenue, bookings, results of operations and operating leverage inherent in our platform; our investments and initiatives; our market opportunities;
Slide 3: Agenda
Agenda Pioneer Project HolyGrail Results Scale of Plastics Problem Role of ICP in the Circular Economy Business Update Working Capital Management Closing Remarks
Slide 4: Pioneer Project HolyGrail Results
Pioneer Project HolyGrail Results
Slide 5: Pioneer Project HolyGrail – Completed May
Pioneer Project HolyGrail – Completed May 22 A three-year initiative and full-value chain collaboration project led by Procter & Gamble initiated by the Ellen MacArthur Foundation’s New Plastics Economy consortium (more than 350+ corporations) Goal was to select a harmonized solution to improve the
Slide 6: Demonstration at TOMRA R&D Center, Koblenz, Germany
Demonstration at TOMRA R&D Center, Koblenz, Germany Tomra is world leader in Reverse Vending Machines and Collection and Sorting solutions Attended by 60+ industry participants (brands, retailers, recyclers, government agencies and trade associations) Print (packaging labels): IML tubs Paper label o
Slide 7: Successful Proof of Concept Demonstration, May 16, 2019
Successful Proof of Concept Demonstration, May 16, 2019 Link: https://vimeo.com/332020546/39583c93e0
Slide 8: Scale of Plastics Problem
Scale of Plastics Problem
Slide 9: Emerging Global Plastics Crisis
Emerging Global Plastics Crisis “Several recent reports indicate the dire global situation associated with the world's plastic use. Two statistics jump out immediately. One, that globally humans buy a million plastic bottles per minute. The second, 91% of all plastic is not recycled. On top of that,
Slide 10: Societal costs and consumer pressures forcing action on plastic waste
Societal costs – and consumer pressures – are forcing governments and CPGs to address pressing issues with plastic waste streams. These environmental impacts are felt in the oceans, burning/incineration, and landfills: If current pollution rates continue, there will be more plastic in the sea than f
Slide 11: Role of ICP in the Circular Economy
Role of ICP in the Circular Economy http://www.wrap.org.uk/about-us/about/wrap-and-circular-economy
Slide 12: Evolution of ICP as a Multi-sided Platform (MSP)
Evolution of ICP as a Multi-sided Platform (MSP) Digimarc’s Intuitive Computing Platform (ICP) is a Multi-sided Platform (MSP) It is a general utility Auto ID MSP that improves performance and expands reach of barcodes “MSPs are technologies, products or services that create value primarily by enabl
Slide 13: Weaknesses in Current Recycling Systems
With Digimarc ICP Weaknesses in Current Recycling Systems Currently difficult to identify and sort: Food versus non-food containers Multi-layer, multi-material objects and their components Carbon-black, opaque, difficult-to-recycle objects Color/type of plastic hidden by shrink sleeve Manufacturer,
Slide 14: Digimarc Barcode: Giving Plastics a 'Discoverable Identity'
Digimarc Barcode: Giving Plastics a ‘Discoverable Identity’ Digimarc Barcode is integrated into mold through “micro-topological variations:” Adds texture or subtle dots, but no human-recognizable structure Digimarc Barcode can also be added to shrink sleeves and labels to improve scan rates and prov
Slide 15: Digimarc Barcode for Recycling – Embossed in Plastic
Digimarc Barcode for Recycling – Embossed in Plastic Digimarc Barcode Signal Tile Signal Tile Showing Intensity Variations as 3D Surface Intensity Changes Induced by Micro-topological Variations X-axis Y-axis Exaggerated view Exaggerated view
Slide 16: Digimarc Barcode Delivers True 'Intelligent Sorting'
Digimarc Barcode Delivers True “Intelligent Sorting” Mixed waste to be recycled Sensors detect Digimarc Barcode Air jet sorts plastics according to data delivered through Digimarc Barcode Plastics with a Digimarc Barcode identity allow recycling and sorting centers to perform “hyper-separation” for
Slide 17: Benefits of Digimarc Barcode for More Accurate Sorting
Benefits of Digimarc Barcode for More Accurate Sorting
Slide 18: Benefits to Recyclers
Benefits to Recyclers Detection if a container previously held food or non-food contents: Without accurate detection, food containers must be ‘down-cycled’ and can’t be recycled for use again with food. This creates extraordinary waste Industry representatives describe this sorting of food vs non-fo
Slide 19: Benefits to CPGs
Benefits to CPGs Continued use of current trade dress by manufacturers: Carbon-black is often color of choice for food and other products, but can’t be scanned by near-infrared systems ALDI is phasing out carbon-black plastic; Carrefour and Tesco developing alternatives “Digimarc is giving brands a
Slide 20: Example of Economic Benefit – Reduction in EPR Fees
Example of Economic Benefit – Reduction in EPR Fees Producers of packaging and retailers pay “Extended Producer Responsibility” fees to help cover societal and environmental burdens of plastic, such as collection and recycling: Producer’s burden is increasing 10X, going from 10% of cost to 100% in v
Slide 21: Recycling Affects all Groups in ICP Local Node
Recycling Affects all Groups in ICP Local Node – Consumers, CPGs, and Retailers THE BARCODE OF EVERYTHING® THE BARCODE OF EVERYTHING® THE BARCODE OF EVERYTHING® Media Features: CPG features for private brands Store operations, e.g., Easy Checkout, Shelf Inventory Management, Waste reduction Features
Slide 22: Plastic Recycling Next Phase
Plastic Recycling Next Phase
Slide 23: Next Steps
Next Steps New post-HolyGrail consortium being formed with brand owners, retailers, recyclers, trade associations, and government agencies to guide development & adoption. Digimarc core technology is proven, now engineering and development can proceed: Further refine and productize detector/camera/o
Slide 24: Business Model for Circular Economy – Under Development
Business Model for Circular Economy – Under Development VALUE PROPOSITION CUSTOMER RELATIONSHIPS CHANNELS KEY ACTIVITIES REVENUE STREAMS COST STRUCTURE CUSTOMER SEGMENTS KEY RESOURCES More reliable, efficient data carrier with no noticeable visible artifacts Can be included in plastic substrate, shr
Slide 25: Upcoming Presentations at Industry Events
Upcoming Presentations at Industry Events Active & Intelligent Packaging Summit Americas, June 4, Jersey City, NJ Larry Logan, Digimarc Plastics Recycling Technology, June 18, Dusseldorf, Germany Gian de Belder, HolyGrail Project Leader, Principal Scientist, P&G Larry Logan, Digimarc CITEO, June 19t
Slide 26: Business Update
Business Update
Slide 27: Recent Announcements
Recent Announcements University of Arkansas Study Published Digimarc Barcode showed a 30% increase in IPM compared to the visible UPC barcode Digimarc Barcode on product packaging helps reduce cashier muscle strain when compared to products with only a UPC barcode Improvements to Digimarc Quality Ma
Slide 28: Other Business Developments
Other Business Developments Discover/Barcode YTD bookings of $2.4mm vs $0.6mm this time last year 12 retailers in early engagement for Digimarc Barcode for Fresh Product Labels Strategic partners, including Datalogic, Zebra, Schawk, WestRock and HP Inc., are ramping up sales and marketing Exploring
Slide 29: Working Capital Management
Working Capital Management
Slide 30: At The Market Offering Basics
At The Market Offering Basics: Can sell up to $30mm of new common shares via Wells Fargo Discretion as to when, how many shares, and price Sales are at market price; no discount Costs: Legal and accounting: ~$350k plus $25k/quarter for life of program Sales commission: 2.50% on the first $10 million
Slide 31: Our situation: Clearly articulated strategy, with objective measures of progress
Our situation: Clearly articulated strategy, with objective measures of progress Constrained product market focus: consumer products and retail Market development strategy targets world leaders in these markets Their scale and scale of their suppliers dwarfs Digimarc Limited resources to manage acco
Slide 32: Closing Remarks
Closing Remarks
Slide 33: Plastic Recycling and ICP
Plastic Recycling and ICP Digimarc Barcode is a more efficient, reliable and scalable solution for increasing accuracy in plastics sorting, delivering greater yields and quality to meet industry mandates In comparison to other means, Digimarc Barcode provides unmatched “Intelligent Sorting” without
Slide 34: What to Watch for Next
What to Watch for Next … Increasing booking and revenues: More accounts More fresh product label sales New applications Maturation of supplier relationships Market momentum Business case for Circular Economy (plastic recycling) Increase in working capital via ATM or other approaches Progress in plan
Slide 35: Inquiries & Contact Information
Inquiries & Contact Information Matt Glover Investor Relations Phone: 949.574.3860 Liolios Group Matt@liolios.com Charles Beck EVP, CFO Digimarc Corporation Phone: 503.469.4721 Charles.Beck@digimarc.com
Slide 36: Digimarc – The Barcode of Everything
DIGIMARC | @) The Barcode of Everything”