Safeguard Scientifics, Inc. · OTC:SFES
Safeguard Scientifics — Investor Presentation (June 2014)
19 slides from Safeguard Scientifics's investor presentation, June 2014
Slide 1: Corporate Presentation June 2014
CORPORATE PRESENTATION June 2014 1
Slide 2: Safeguard Scientifics (NYSE:SFE)
Safeguard Scientifics (NYSE:SFE) • Substantial Track Record • Deep Domain Expertise • Focused Approach • Evergreen Funding Model • Strong Balance Sheet and Liquidity 2
Slide 3: Why Own Safeguard (NYSE:SFE)?
Why Own Safeguard (NYSE:SFE)? • Full Value Yet to be Realized or Recognized • Ownership Stakes in Exciting Partner Companies • Top Performance of Proven Team • Financial Strength, Flexibility and Liquidity • Strong Alignment of Interests 3
Slide 4: Goals and Objectives
Goals and Objectives • Focus on core business as engine to value growth • Greater consistency in the amount of deployed capital and capital realized through monetizations • Target aggregate cash‐on‐cash returns at a minimum of 2x cost • Larger stable of partner companies to provide for greater oppor
Slide 5: Core Operating Model
Core Operating Model BUILD VALUE Operational Expertise a S| DEPLOY CAPITAL $ $ Healthcare and Technology REALIZE VALUE Target Aggregate Cash-on-Cash Returns at a Minimum of 2x Cost SFE www. Safeguard.com © 2014. Safeguard Scientifics, Inc. All rights reserved. NYSE
Slide 6: Core Capital Deployment Objectives
Core Capital Deployment Objectives 6
Slide 7: Our Team
Our Team Stephen T. Zarrilli President and CEO Finance & Healthcare Technology Accounting Gary J. Kurtzman, MD Philip D. Moyer Jeffrey B. McGroarty SVP and Managing Director, SVP and Managing Director, SVP and CFO Healthcare Technology Al Wiegman Erik B. Rasmussen Venture Partner, SVP and Managing D
Slide 8: Current Syndication Partners
Current Syndication Partners 8
Slide 9: Current Partner Companies
Current Partner Companies S 20% MEDTECH GoodStart’_ Genetics 27% DIGITAL MEDIA 6% NovaSom SPECIALTY ; PHARMA pp PUTNEY @ SPONGECELL AdvantEdge HEALTHCARE D dabo AppFirst TECHNOLOGY 7 medics @pprenda @) Quantia 21% : i HEALTHTECH Sdrivefactor fr y pneuron 2 1 % Lumeas ENTERPRISE 3.0 % Represents allo
Slide 10: Partner Companies by Revenue Stage
Partner Companies by Revenue Stage 10
Slide 11: Partner Company Update
Partner Company Update: • Leader in digital marketing technology JULY 2009 23% Initial Capital SFE Primary Deployed Ownership • TerminalOne Marketing Operating SystemTM $18.5M Digital Media Total Capital Deployed Sector • Powers operations for 1000s of marketers, $124B High Traction Estimated worldw
Slide 12: Partner Company Update
Partner Company Update: • Molecular genetic information company SEPT 2010 30% Initial Capital SFE Primary • Genetic carrier screening tests based on Deployed Ownership next‐generation sequencing technology $12.0M Med Tech Total Capital Deployed Sector • GoodStart SelectTM ― Screens for all 23 geneti
Slide 13: Partner Company Update
Partner Company Update: • Rapidly growing specialty SEPT. 2011 28% pharmaceutical company Initial Capital Deployed SFE Primary Ownership $11.9M Specialty • Headquartered in Portland, ME Total Capital Deployed* Pharma Sector $8.9B • Developing high‐quality, cost‐effective Est. U.S. companion animal H
Slide 14: Partner Companies Revenue Guidance
Partner Companies Revenue Guidance * Aggregate revenue guidance for 2014 and prior years, presented above, reflects revenue on a net basis. Revenue figures utilized for certain companies pertain to periods prior to Safeguard’s involvement with said companies and based solely on information provided
Slide 15: Recent Success Stories
Recent Success Stories Cash-on-Cash Acquired By Proceeds* Return $38.4M 4x $23.1M 1x $15.7M 2x $36.4M 4x $38.1M 4x $138.2M 13x $41.3M 4x $207.8M 3x * Excludes amounts currently held in escrow or subject to earn-out. 15
Slide 16: Equity Incentive Compensation
Equity Incentive Compensation • Key Goals – Structured to align with shareholder interest – Consistent with carried interest methodology – 75% of vesting based on performance criteria • Performance Vesting Elements – Upon achievement of certain market capitalization thresholds – Upon achievement of
Slide 17: Why Own Safeguard (NYSE:SFE)?
Why Own Safeguard (NYSE:SFE)? • Full Value Yet to be Realized or Recognized • Ownership Stakes in Exciting Partner Companies • Top Performance of Proven Team • Financial Strength, Flexibility and Liquidity • Strong Alignment of Interests 17
Slide 18: John E. Shave III
John E. Shave III SENIOR VICE PRESIDENT, INVESTOR RELATIONS & CORPORATE COMMUNICATIONS P 610.975.4952 E jshave@safeguard.com 18
Slide 19: Forward Looking Statements
Forward Looking Statements Statements contained in this presentation that are not historical facts are forward looking statements which involve certain risks and uncertainties including, but not limited to, risks associated with our ability to make good decisions about the deployment of capital, the
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