finjan_investor_presentation_may2014
DESCRIPTION
Finjan is a technology company committed to investing in innovation, advancing the development of new technologies while promoting the value of IP rights.TRANSCRIPT
STRICTLY CONFIDENTIAL. NOT FOR PUBLIC DISTRIBUTION.APPROVED FOR PUBLIC DISTRIBUTION, May 2014
NASDAQ: FNJNMay 2014
www.finjan.com
Finjan Holdings, Inc.
Advancing
Innovation
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APPROVED FOR PUBLIC DISTRIBUTION, May 2014
The following presentation is an outline of matters for informational purposes only. This document does not constitute an offer to sell or a solicitation of an offer to buy any securities of Finjan Holdings, Inc. (“Finjan”, “we” or “us”).
This presentation includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include statements regarding our expectations, intentions, beliefs and projections about our future results, performance, prospects and opportunities. These statements can be identified by the fact that they do not relate strictly to historical or current facts or by the use of words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “project,” “potential,” “should,” “will,” “will be,” “would,” the negative of these terms and similar expressions, but this is not an exclusive way of identifying such statements. Readers are cautioned that forward-looking statements are not guarantees of future performance. Our actual results, performance and achievements may differ materially from those expressed in, or implied by, the forward-looking statements contained in this presentation as a result of various risks, uncertainties and other factors. Important factors that could cause our actual results to differ materially from our expectations include, without limitation, our ability to execute our business plan, the outcome of pending or future enforcement actions, our ability to expand our technology portfolio, the enforceability of our patents, the continued use of our technology in the market, the development of a liquid trading market for our securities and other factors described under Item 1A, “Risk Factors,” as set forth in the Company’s Annual Report on Form 10-K filed with the SEC on March 14, 2014, and any subsequent quarterly or current reports.
The Company will continue to file annual, quarterly and current reports, proxy statements and other information with the SEC. Forward-looking statements speak only as of the dates specified in such filings or presentations. Except as expressly required under federal securities laws and the rules and regulations of the Securities and Exchange Commission, we do not undertake any obligation to update any forward-looking statements to reflect events or circumstances arising after any such date, whether as a result of new information or future events or otherwise. You should not place undue reliance on the forward-looking statements included in this presentations or that may be made elsewhere from time to time by us, or on our behalf. All forward-looking statements attributable to us are expressly qualified by these cautionary statements.
Our filings with the SEC are available to the public on, and may be reviewed at, the SEC’s internet website http://www.sec.gov and on Finjan’s web site http://www.finjan.com. You may also read and copy any document that Finjan files with the SEC at the SEC’s Public Reference Room, 100 F Street, N.E., Washington, D.C. 20549. Please call the SEC at 1-800-SEC-0330 for further information on the Public Reference Room and their copy charges.
Safe Harbor Statement
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APPROVED FOR PUBLIC DISTRIBUTION, May 2014
At a Glance
Pioneer in Cybersecurity with a Diverse Global Portfolio of 40+ Issued and Pending Patent Assets.
Successfully Licensed Intellectual Property to 5 Major Companies Resulting in more than $145 MM of Income.
Broad Portfolio of Patents
• 40+ issued and pending patents around the world
• Patents covering Finjan developed products
• Fundamental, not “feature,” patent
Managing IP as an Asset Class
• Taking 80% of technology value and making it 100% of our focus
• Developed core competency in Intellectual Property as an asset class
• Industry-wide licensing program of Finjan’s innovations
Innovator in Software Security
• Over $65 MM invested in R&D• Spurred by a challenge to
develop a “killer” Java application
• Early recognition that inventions needed patent protection
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APPROVED FOR PUBLIC DISTRIBUTION, May 2014
Historic investor base includes top technology venture capitalists, former Fortune 500 CEOs & institutional investors with successful track record of investing in technology & IP
Stock Information
1: As of 5/6/20142: As of 3/31/2014
Ticker Symbol NASDAQ: FNJN
Recent Share Price1 $5.50
52-Week Range1 $4.70 – $15.00
Shares Outstanding2 22,368,453
Market Cap1 $119 million
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APPROVED FOR PUBLIC DISTRIBUTION, May 2014
Diverse global portfolio of 40+ issued and ending patent assets in endpoint, web and network security built from Finjan’s own innovations
Relevant Intellectual Property Portfolio
PATENT PORTFOLIO
• 22 issued U.S. patents
• 4 pending U.S. applications
• 11 issued foreign patents
• 4 pending foreign applications
PORTFOLIO HIGHLIGHTS
• Worldwide coverage
• Earliest priority dates: 1996
• Expiration dates: 2030
and beyond
• Multiple families
UNITED STATES22 Granted Patents4 Patent Applications
CANADA1 Granted Patent1 Patent Applications
GERMANY 1 Granted Patent
FRANCE1 Granted Patent
ITALY1 Granted Patent
NETHERLANDS1 Granted Patent
U.K.1 Granted Patent
JAPAN1 Granted Patent
ISRAEL3 Granted Patents1 Patent Application
PCT Filings1 Granted Patent
2 Patent Applications
Note: Additional non-public fillings
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APPROVED FOR PUBLIC DISTRIBUTION, May 2014
Product suite includes software and appliances focused on protecting endpoint devices connected through web or enterprise network infrastructure
Homegrown Technology
Small and Medium-Sized Business
SolutionsEnterprise Solutions
Large Enterprise Solutions
NG-100 NG-5100 NG-6100 NG-8100
• Behavior based detection prevention of malicious code/viruses
• Our technology is the base architecture for monitoring malicious code/viruses as individuals and enterprises access the internet through multiple access points/networks (mobile, private, public, enterprise)
• Increased relevance in a connected but unwired world
Example
Situation: Someone sends you a power point file that has a virus that downloads malware
Solution: Finjan technology runs the attached file in the sandbox in the background, identifies the malicious code, strips it out, and replaces the clean attachment without the user even knowing it
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Commercial Adoption of Security Solutions
1995 1995 - 2000 2000 - Present
VIRUS MALWARENETWORKGATEWAYSECURITY
SOLUTION Early Adaptive Integrated Comprehensive
THREAT
Virus and signature-based threats delivered to endpoints
Malware and malicious code and other yet unknown threats over the web to endpoints
Viruses and malware over the web and through private networks attacking endpoints and data storage
Cybersecurity includes antivirus and malware in both software and hardware but includes intrusion prevention fraud detection to any number of connected endpoint devices
COVERAGE Endpoint Endpoint, webEndpoint, web, network
Endpoint, web, network, mobile devices
IMPLEMENT-ATION Software Software
Software, hardware
Software, hardware, SaaS
GROWTH STRATEGY
FINJAN PATENTS
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Cybersecurity: An Escalating Global Challenge
C Y B E R S E C U R I T Y B R E A C H E S I N T H E N E W S
FBI: Cyber-attacks Surpassing
Terrorism as Major Domestic Threat
JPMorgan Warns Card Users on Data
Loss After Cyberattack
December 5, 2013November 25, 2013
Target cyber breach hits 40
million payment cards at holiday
peak
December 19, 2013
“Growth in the cloud security services space has overtaken that of traditional delivery models, growing at a rate of 30% by the end of 2013 and reaching $4.2 billion by 2016.”
“2013 worldwide IT security spending will be approximately $17.9 billion.”
“2013 Enterprise spend on Secure Web Gateway is estimated to be $2.5 billion with a expected CAGR of 11.8% between 2011-2016.”
“Cyber attacks listed as a top national security threat in the 2013 Worldwide Threat Assessment of the U.S. Intelligence Community.”
“Secure Web Gateway revenues grew 15% in 2012 and are estimated to grow between 13%-15% in 2013.”
“2011 Ponemon Institute study estimated a 44% increase in successful cyber attacks from the prior year.”
Neiman Marcus latest victim of cyber attacks,
January 11, 2014 March 16, 2014
NATO Says its websites hit by cyber attacks
Cyber-Attacks to grow with new technologies, Clapper Says
January 11, 2014
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APPROVED FOR PUBLIC DISTRIBUTION, May 2014
Horizontally Integrated Cybersecurity Markets
Sta
ndalo
ne V
ertica
l, Softw
are
Secu
rity
Single Vertical(Legacy)
Comprehensive software protection for endpoint devices including the emergence of smartphone operating system security
Includes consumer and enterprise malware protection delivered over the cloud as well as web/gateway infrastructure protection
Traditional networking equipment now includes integrated malware protection. Both purpose built boxes and next gen firewall
Endpoint & Cloud
Web Gateway
Next Gen. Firewall
Multiple Industry Verticals with BILLION dollar markets
Software Web Infrastructure
Networking Equip.
$4.1 BN$11.2 BN $4.0 BN
* Market Estimates from Gartner, SEC documents, and Company Estimates for 2013
Finjan Patented Innovations at the Core
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APPROVED FOR PUBLIC DISTRIBUTION, May 2014
Cybersecurity Licensing Universe
Relevant Security Markets
2013 2014 2015 2016 2017
Endpoint & Cloud
$11.2 BN $11.8 BN $12.5 BN $13.2 BN $13.8 BN
Web Gateway $4.1 BN $4.4 BN $4.7 BN $5.0 BN $5.3 BN
Next Gen. Firewall
$4.0 BN $4.0 BN $4.0 BN $3.7 BN $3.4 BN
Total Sales $19.3 BN $20.2 BN $21.2 BN $21.9 BN $22.5 BN
2013 2014 2015 2016 20170.0
2.0
4.0
6.0
2013 2014 2015 2016 20173.0
3.5
4.0
4.5
2013 2014 2015 2016 20170.0
5.0
10.0
15.0
Endpoint & Cloud Next Gen. Firewall
Web Gateway
Source: Gartner forecast and Company analysis.
$ in BN $ in BN$ in BN
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APPROVED FOR PUBLIC DISTRIBUTION, May 2014
2007:
2012: Confidential
2012: Confidential
2010: “2010 Litigation” (5 Defendants)
2013:
2013:
2013:
2013:
2014:
2005:
2009:
2012:
Finjan generates revenues by granting IP licenses and, where necessary, protecting its proprietary inventions through active enforcement of patent rights
Sustainable Business Model
LICENSING LITIGATION
SETTLEMENTS
80% 20%80%
Finjan has generated more than $145 MM in income from licenses and settlements
JUDGEMENTS20%
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APPROVED FOR PUBLIC DISTRIBUTION, May 2014
JUDGMENTS
Successful Track Record Monetizing Assets
COMPANY . DATELICENSES & SETTLEMENTS
TYPE*
March 2008 $37.9 MM
• Established royalty rate 8%-16%
• Willfulness found• Injunction granted
July 2005 $8 MM• Paid-up,
cash• Portfolio
• Life of patents
Nov 200925% equity of M86
• Stock• Portfolio
• Life of patents
March 2012 $3.1 MM1 • Stock• Portfolio
• Life of patents
April 2012 $11.3 MM • Confidential• Portfolio
• Life of patents
Nov 2012 $85 MM • Confidential• Portfolio
• Life of patents
LICENSES&
SETTLEMENTS
*e.g.: Running royalty, paid up, lump sum, etc.1: Estimated book value representing 224,000 shares of TrustwaveSource: company SEC fillings
CONFIDENTIAL
CONFIDENTIAL
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Finjan continues to grow through strategic acquisition, investment, and partnerships leveraging our experience in making our technologies available through licensing
Growth Opportunities Beyond Cybersecurity
Years 1 2 3 4 5 6 7 8
Leg WorkHigh
Leg WorkLow
Finjan Portfolio
Finjan Portfolio
Current Portfolio
Future Portfolio 1
Future Portfolio 1
Future Portfolio 1
Future Portfolio 2
Future Portfolio 2
Future Portfolio 2
Notice Period
Early Harvest
Core Harvest
Volume IncomeLow ($)
Volume IncomeHigh ($)
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THIRD-PARTY LICENSING AGENTS AND AGGREGATORS
Name TickerMarket
Cap
RPXC $856MM
ACTG$744MM
Private ?
Private ?
Private ?
Private ?
TECHNOLOGY BASED IP COMPANIES
Name TickerMarket
Cap
FNJN$108 MM
IDCC$1.45
BN
TSRA$1.1BN
RMBS$1BN
PRKR$458MM
WILN$361MM
Finjan identifies with a distinguished grouping of public and private companies with an income component from intellectual property
Peer Group Analysis
ACQUIRED IP COMPANIES
Name TickerMarket
Cap
VHC $747MM
PCO $404MM
VRNG $275MM
UPIP $244MM
DSS $62MM
SPEX $6MM
Note: Market Cap as of 5/22/14
(Apple, Blackberry , Ericsson, Microsoft, and Sony)
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Seasoned Management Team
Shimon Steinmetz Chief Financial Officer
• Former technology banker - Cantor Fitzgerald, Goldman and Citigroup
• Former senior associate at TH Lee Putnam Ventures• MBA, University of Chicago• BA, Yeshiva University
Ivan Chaperot VP, IP Licensing
• Former Intel executive responsible for large scale IP transactions
• Former Licensing executive Intellectual Ventures• Former senior manager Alcatel Lucent• MA, Centre for International Intellectual Property Studies• DEA, University of Paris-Sud
Phil Hartstein President
• Former VP and portfolio manager at IP Navigation Group• Former managing director at Rembrandt IP• Former director in a patent brokerage, practice head of an
IP consulting firm, trained in boutique IP firm• BS Industrial Technology, Cal Poly SLO
Julie Mar-Spinola VP, Legal Operations
• Former GC at Alta Devices, Phoenix Technologies and iolo technologies
• Former VP, Global Affairs at Atmel Corporation (ATML), overseeing global IP, litigation and licensing
• Former Special Counsel to Heller Ehrman, specializing in complex IP litigation
Miyun Sung VP, Legal Counsel
• Former Counsel for Hogan Lovells • Former Senior Counsel for MicroStrategy Inc. • JD, Harvard Law School• BA, Cornell University
Shlomo Touboul, Senior Advisor (Finjan, Inc.)
• Founder of Finjan Software and inventor on a number of Finjan patents
• Founder at CUPP Computing, Yoggie Security Systems, StrategySeeker.com
• BS, Technion Israel Institute of Technology
Friederike Edelmann, Director Investor Relations
• Former IRO SAP, Coty, Realtech• Member of the Board of NIRI New York• Bachelor of Business Administration, Florida Atlantic
University/Accadis Bad Homburg, Germany• MS in Marketing, GSBA Oekreal Zurich, Switzerland
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Distinguished Board of Directors
Michael Eisenberg Director
• Partner, Aleph, an early stage Israeli venture fund
• General Partner, Benchmark Partners
• Former Partner, Israel Seed Partners
• BA Political Science, Yeshiva University
Alex Rogers Director
• Managing director, HarbourVest Partners
• Former business analyst, McKinsey & Company
• Serves on multiple boards of private/public companies
• MBA, Harvard Business School
• BA Economics, Duke University
Eric Benhamou Director
• CEO and Founder, Benhamou Global Ventures
• Former CEO, Palm
• Former CEO, 3Com
• Doctorate, Arts et Métiers, Paris Tech
• Masters in Engineering, Stanford University
Daniel Chinn Director
• Partner, Tulchinsky Stern Marciano Cohen Levitski & Co.
• Former Partner, Herzog, Fox & Neeman
• Former Partner, Israel Seed Partners
• BA Jurisprudence, Oxford University
• Member of the Israel Bar Association
Harry Kellogg Director
• Former vice chairman of the board of the Silicon Valley Bank, the California bank subsidiary and the commercial banking operation of SVB Financial Group
• Serves on multiple boards of civic and industry organizations
• BS Business Administration & Finance, San Jose State University
Michael Southworth Director
• CFO Contact Solutions LLC
• Former SVP of Global Wireless Solutions at Corning
• BS Biology Business Concentration, University of California at Berkeley
• CPA in the State of California
Glenn Daniel Director
• Former Managing Director Houlihan Lokey
• BA German & Economics, University of Wisconsin, Madison
• MS Finance, University of Wisconsin, Madison
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APPROVED FOR PUBLIC DISTRIBUTION, May 2014
Investment Thesis
Large Licensing Universe
Successful Licensing History
Strong Balance Sheet
Homegrown Technology
Seasoned Management
Team
Distinguished Board of Directors
Respected Investor Base
Over $100 BN addressable market for Cybersecurity between 2013 and 2017
Successfully received more than $145 MM in licensing/enforcement income absent a dedicated management team and focused business model
$23 MM in cash and no debt (per 10K filed on 3/31/2014)
Battle-proven foundational IP portfolio is a direct result of our R&D efforts and invested dollars
Team that executes, experts in patent monetization, technology investments and capital markets
Advisory representation from globally respected technology and investment leaders
Include top technology venture capitalists, former fortune 500 CEOs & institutional investors with successful track record of investing in technology & intellectual property
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Contact Us
Shimon Steinmetz
Chief Financial Officer Finjan Holdings, Inc.
Direct: 646.755.3320
Email: [email protected]
122 East 42nd Street
Suite 1512
New York, NY 10168
www.finjan.com
PRESENTATION BY:
Friederike Edelmann
Director Investor RelationsFinjan Holdings, Inc.
Direct: 646.350.4999
Email: [email protected]
122 East 42nd Street
Suite 1512
New York, NY 10168
www.finjan.com
FOR MORE INFORMATION: