Safeguard Scientifics, Inc. (NYSE: SFE) has a distinguished track record of fostering innovation and building market leaders. For more than 60 years, Safeguard has been providing growth capital and operational support to entrepreneurs across an evolving spectrum of industries. Today, Safeguard is focused specifically on healthcare and technology. Safeguard is a proven partner for entrepreneurs looking to accelerate growth and build long-term value in their businesses. Investors in SFE have a unique opportunity to tap into the high potential of Safeguard's early- and growth-stage partners companies.
2. About Safeguard Scientifics (NYSE:SFE)
> Founded in 1953
> NYSE-listed since 1971
> Proven Partner for entrepreneurs looking to accelerate growth and
build long-term value in their businesses
> Industry Focus on healthcare and technology
> Successful Track Record includes $776M realized since 2006*
> Deep Domain Expertise as financiers and entrepreneurs
> Strong Balance Sheet and Liquidity
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*Includes DriveFactor
3. Why Own Safeguard (NYSE:SFE)?
> Full Value Yet to be Realized or Recognized
> Ownership Stakes in Exciting Partner Companies
> Top Performance of Proven Team
> Financial Strength, Flexibility and Liquidity
> Strong Alignment of Interests
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15. Cash Flow through 3/31/15
Beginning cash at 1/1/15 156.5$
Sources:
Exit proceeds 2.0
Other 0.9
Total Sources 2.9
Uses:
New partner company deployments 12.8
Follow-on funding 9.4
Corporate expenses - cash paid 6.7
Other 0.3
Total Uses 29.2
Ending cash at 3/31/15 130.2$
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(in millions)
17. Equity Incentive Compensation
> Key Goals
• Structured to align with shareholder interest
• Consistent with carried interest methodology
• Majority of vesting based on performance criteria
> Performance Vesting
• Upon achievement of cash-on-cash return thresholds (2.0x-3.0x) on pools of capital
deployed
> Insider Ownership
• 39% of outstanding grants are vested
• Ownership requirements of 2x-4x base salary for senior management
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19. 2015 Goals and Objectives
> Increase total number of partner companies to approximately 30
> Deploy $35M - $50M in new partner companies
> Deploy $30M - $50M in follow-on funding for current partner companies
> Realize continued growth in partner company aggregate revenue to
$430M to $450M
> Realize a minimum of two profitable exits
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20. John E. Shave III
SENIOR VICE PRESIDENT,
INVESTOR RELATIONS &
CORPORATE COMMUNICATIONS
P 610.975.4952
E jshave@safeguard.com
Request a Meeting:
www.safeguard.com/RequestAMeeting
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21. 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 fact
that our partner companies may vary from period to period, our substantial capital
requirements and absence of liquidity from our partner company holdings, fluctuations in
the market prices of our publicly traded partner company holdings, competition, our
inability to obtain maximum value for our partner company holdings, our ability to attract
and retain qualified employees, market valuations in sectors in which our partner
companies operate may decline, our inability to control our partner companies, our need to
manage our assets to avoid registration under the Investment Company Act of 1940, and
risks associated with our partner companies, and other uncertainties as described in our
filings with the Securities and Exchange Commission, including our Annual Report on Form
10-K. Many of these factors are beyond our ability to predict or control. As a result of these
and other factors, our past financial performance should not be relied on as an indication
of future performance.
Safeguard does not assume any obligation to update any forward looking statements or
other information contained in this presentation. You should not rely on these statements
as indicative of the partner company’s future results, and all forward looking statements
are qualified by this cautionary statement. All information is as of the date indicated or as
of the date of this presentation, and none of the partner companies assumes any
obligation to update or revise the information presented.
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