Safeguard Scientifics (NYSE: SFE) Investor Relations Presentation - December 2011

Investor Presentation December 2011

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 the uncertainty of managing rapidly changing technologies, limited access to capital, competition, the ability to attract and retain qualified employees, our ability to execute our strategy, the uncertainty of the future performance of our partner companies, acquisitions and dispositions of additional partner companies, the inability to manage growth, government regulation and legal liabilities and the effect of economic conditions in the business sectors in which our partner companies operate, negative media coverage and other uncertainties as described in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K.
Safeguard does not assume any obligation to update any forward looking statements or other information contained in this presentation.

The Safeguard Difference (NYSE: SFE) SIGNIFICANTLY UNDERVALUED

Why Own Safeguard?
Full Value Yet to be Realized
Ownership Stakes in Exciting Partner Companies
Top Performance of Proven Team
Financial Strength, Flexibility and Liquidity
Strong Alignment of Interests

Experienced Team Peter J. Boni President and CEO Jim Datin EVP and Managing Director, Deal Teams Brian Sisko SVP and General Council John E. Shave III VP, Corporate Communications and Business Development Steve Zarrilli SVP & CFO Prime Response Online Software International

The Company We Keep Alliances & Syndication Partnerships Technology & Life Sciences Advisory Boards SFE Board of Directors

Safeguard Today

Safeguard Positioning

Go To Market Strategy
Growth Financing
Up to $25M
Generally Primary Shareholder
Realize Value
GROWTH DRIVERS
Maturity
Migration
Convergence
Compliance
Cost Containment
CRITERIA
Management
Market
Model
Momentum
Moat

Attractive Sectors * Represents % of Capital Deployed in Current Partner Companies.

Recent Success Stories * Includes Amounts Held in Escrow, if any, but not Earnout, where Applicable. ** Proceeds include $61M from Sale of CLRT Shares during Q3’09. *** Based on achievement of difficult earnout provisions. Return Potential Could Approach 8x*** Market Cap Increased 5x Acquired By Proceeds* Cash-on-Cash Return $36M 4x $146M 14x $36M 3x $208M** 3x

Revenue Stages

Case Study: SFE Stake 25%
Medical Technology Company
Developed and is Commercializing emPower!
emPower! Most Significant Change in Eyeglasses Since Bifocal in 1784
100M Bifocals and Progressive Lenses Sold Per Year
Every 1% Penetration = $400M in Revenue for PixelOptics
1000+ Eye Care Professionals Signed On
SFE Deployed Capital in April 2011

Top 10 Provider of Medical Billing and Practice Management Services
U.S. Market Opportunity Exceeds $4B Annually
<20% Physician Practices Outsource Billing and Practice Management
Gaining Meaningful Scale via Organic Growth and Strategic Acquisitions
Completed Four Acquisitions since mid-2009
2011 Revenue Expected to Exceed $40M
Inc.5000 Three Consecutive Years; Ranked #10 Fastest Growing Co. in NJ
Safeguard Deployed $15.3M since November 2006
Market for AHS' Services Approx. $4B - $8B 1 1 Billing and Practice Management Service Market (Falcon Capital): $8.0B; Total RCM Market (Wallingford Capital/HBMA, 2007): $4.75 B; Top 10 Billing cos.: $1.0B

Provides Enterprise-Class Technology and Services to Advertisers/Agencies
‘ Bloomberg’ Terminal: Media Buying Platform
Recognized Industry Leader
2011 U.S. Online Advertising Forecast to Grow 20% to $31B
Revenues Increased 150% from 2009; $100M Current Run Rate
Expanding Domestic, International Operations
Strong Client Roster – All Agency Groups, Dozens of Fortune 500
SFE Deployed $16.9M since July 2009

Safeguard Partner Companies
14 Partner Companies Today
23 Board Seats Across 14 Companies
11 Companies Generating Revenue
3 Companies EBITDA Positive
2 Companies Filed NDA
Deployed $174M in Current Partner Companies
Realized $632M Since January 2006 (2.4x CoC)
Strong Partner Company Satisfaction
* Revenue figures utilized for certain companies pertain to periods prior to Safeguard’s involvement with said companies and based solely on information provided to Safeguard by such companies. Safeguard reports the revenue of its equity method and cost method partner companies on a one-quarter lag basis. Aggregate revenue excludes revenue for Medivo. Aggregate Revenues*

Financial Highlights
$280M in Cash, Cash Equivalents and Marketable Securities*
Excluding $18.7M of Cash Held in Escrow
2011 Projected Uses of Cash = $100M to $150M
Capital Deployment into New Partner Companies
Follow-on Funding for Current Partner Companies
Repayment of Senior Convertible Debentures
Platform Expansion
Corporate Expenses
* As of 9/30/11

Strategy for Growth
Build Value in Current Holdings
Realize Some Valuable Exits
Replenish The Holdings with Winners
Expand the Platform

Why Own Safeguard?
Full Value Yet to be Realized
Ownership Stakes in Exciting Partner Companies
Top Performance of Proven Team
Financial Strength, Flexibility and Liquidity
Strong Alignment of Interests

The Safeguard Difference (NYSE: SFE) SIGNIFICANTLY UNDERVALUED

December 2011 Investor Presentation

Safeguard Scientifics (NYSE: SFE) Investor Relations Presentation - December 2011

by Safeguard Scientifics

Accessibility

Categories

Upload Details

Usage Rights

1 Embed 5

Statistics

Safeguard Scientifics (NYSE: SFE) Investor Relations Presentation - December 2011 Presentation Transcript