Finjan Holdings, Inc.NASDAQ: FNJN
Rodman & Renshaw 16th Annual Global Investor Conference
Shimon SteinmetzCFO and Treasurer, Finjan Holdings, Inc.
September 9, 2014Approved For General Distribution
Safe Harbor Statement
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 andother 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 www.sec.gov and on Finjan’s web site 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.
Page 2© 2014 Finjan Holdings, Inc. ALL RIGHTS RESERVED
Finjan At a Glance
Cybersecurity licensing company operating in a $20 BN licensing universe, annually. Successfully licensed intellectual property resulting in more than $145 M of income.
Innovator in Cybersecurity
•Developed innovative cybersecurity technologies
•Behavior-based threat detection and prevention as a solution to malware
Manager of IP as an Asset Class
•Core competency in managing intellectual property licensing
•Industry-wide licensing program underway
Broad Portfolio of Patents
•40+ global patents (issued and pending), multiple patent families
•Patents cover fundamental and disruptive technologies
•Expiration dates through 2030
Page 3© 2014 Finjan Holdings, Inc. ALL RIGHTS RESERVED
2012: Confidential
2012: Confidential
2007:
2010: “2010 Litigation” (ON APPEAL)
2013:
2013:
2013:
2013:
2014:
2014:
2005:
2009:
2012:
Business Model Focused on Licensing
Our business model is focused on licensing and reduces the binary risk of trial outcomes while increasing likelihood of income collection.
LICENSING
SETTLEMENTS
80%80%
JUDGMENTS 20%
ENFORCEMENT 20%
Page 4© 2014 Finjan Holdings, Inc. ALL RIGHTS RESERVED
Active Patent Enforcements
Active enforcement program – six concurrent litigations traveling on their own individual timelines (dates are subject to change).
* Websense I and Websense II were consolidated on 6/23/14
Page 5© 2014 Finjan Holdings, Inc. ALL RIGHTS RESERVED
Party Filed Court Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16
2010
Appeal12/1/2013
Court of
Appeals,
Fed Circuit
Oral Argument
(9/9/2014)
7/8/2013NDCA
Armstrong
Stayed Pending
Re-examination
8/28/2013NDCA
Freeman
MARKMAN (8/22/14)
TRIAL (7/20/2015)
9/23/2013
3/24/2014
NDCA
Freeman*
MARKMAN (11/21/14)
TRIAL (10/5/2015)
12/16/2013NDCA
Freeman
MARKMAN (5/8/2015)
TRIAL (1/11/2016)
3/14/2014NDCA
Orrick
MARKMAN (2/13/15)
6/1/2014NDCA
Seeborg COMPLAINT
CAFC-13-1682
4:13-cv-03133-SBA (NDCA)
5:13-cv-03999-BLF (NDCA)
5:13-cv-04398-BLF (NDCA)
5:13-cv-05808-BLF (NDCA)
3:14-cv-01197-WHO (NDCA)
3:14-cv-02998-RGS (NDCA)
Successful Licensing History
Successfully collected income of more than $145 M from licenses, settlements and judgments – far exceeding our current market cap.
COMPANY DATELICENSES & SETTLEMENTS
TYPE
March 2008 $37.9 M
• Established royalty rate 8%-16%
• Willfulness found
• Injunction granted
July 2005 $8 M • Paid-up, cash• Portfolio
• Life of patents
Nov 200925% equity of M86
• Stock• Portfolio
• Life of patents
March 2012 $3.1 M1 • Stock• Portfolio
• Life of patents
April 2012 $11.3 M • Confidential• Portfolio
• Life of patents
Nov 2012 $85 M • Confidential• Portfolio
• Life of patents
1: Estimated book value representing 224,000 shares of Trustwave. Source: company SEC fillings
Confidential
Confidential
Licenses & Settlements
Judgments
Page 6© 2014 Finjan Holdings, Inc. ALL RIGHTS RESERVED
Large Cybersecurity Licensing Universe
Licensing universe comprises many dozens of technology companies. Expected sales of products based on Finjan innovations: Over $100 BN within the next five years.
Relevant Security
Markets2013 2014 2015 2016 2017
Endpoint $11.2 BN $11.8 BN $12.5 BN $13.2 BN $13.8 BN
Messaging & Web $4.1 BN $4.4 BN $4.7 BN $5.0 BN $5.3 BN
Network $4.0 BN $4.0 BN $4.0 BN $3.7 BN $3.4 BN
Annual Impacted
Revenue$19.3 BN $20.2 BN $21.2 BN $21.9 BN $22.5 BN
Source: Gartner forecast and Company analysis.
Page 7© 2014 Finjan Holdings, Inc. ALL RIGHTS RESERVED
“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.”
Gartner
“2013 worldwide IT security spending will be approximately $17.9 billion.”
IDC
“2013 Enterprise spend on Secure Web Gateway is estimated to be $2.5 billion with a expected CAGR of 11.8% between 2011-2016.”
Gartner
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
JPMorgan Warns Card Users on Data Loss After
Cyberattack
December 5, 2013
Target cyber breach hits 40 million payment
cards at holiday peak
December 19, 2013
“Cyber attacks listed as a top national security threat in the 2013 Worldwide Threat Assessment of the U.S. Intelligence Community.”
Office of the Director of National Intelligence
“Secure Web Gateway revenues grew 15% in 2012 and are estimated to grow between 13%-15% in 2013.”
Gartner
“2011 Ponemon Institute study estimated a 44% increase in successful cyber attacks from the prior year.”
PonemonInstitute
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
Page 8© 2014 Finjan Holdings, Inc. ALL RIGHTS RESERVED
Russian Hackers Amass Over a Billion Internet
Passwords
August 7, 2014
Small and Medium-SizedBusiness Solutions
Enterprise Solutions Large Enterprise Solutions
NG-100 NG-5100 NG-6100 NG-8100
Award Winning Technology
Behavior-based threat detection and protection software and appliances, developed in-house, technology still available in the market today.
• Network Products Guide 2009: Finjan’s unified Secure Web Gateway wins in the Product Innovations Web Security category
• eWeek’s Excellence Awards Program: Finjan’s Vital Security Web Appliance 8.4 named WINNER in the Network DatastreamProtection category
• SC Magazine: Finjan’s Vital Security Web Appliance NG-6100 receives five stars
• 2007 Global Excellence Industry Awards: Finjan Vital Security Web Appliance wins Global Product Excellence Awards in three Categories – Web Security, Anti-Malware and Gateways
Page 9© 2014 Finjan Holdings, Inc. ALL RIGHTS RESERVED
Strategic Investment in JVP Fund
Finjan invests millions in a cybersecurity venture fund with R&D incubator through JVP and alongside other technology companies.
About Jerusalem Venture Partners (JVP)
• Top-10 consistently performing VC fund worldwide (#1 in Israel)
• 100 companies built since 1993 with $1 BN raised across 9 funds
• 15 M&A exits and 11 IPO’s accumulating over $17 BN of transaction value
• Hundred’s of millions in returns distributed to partners over the past three years
Key Investment Highlights
• Outsourced R&D, continued engagement and thought leadership in cybersecurity technology
• Access to a pool of innovative technology companies with valuable patent assets
• Israel has been a notable opportunity for acquisitions in security
1. Alt Assets
Page 10© 2014 Finjan Holdings, Inc. ALL RIGHTS RESERVED
Sustainable Business Model Beyond Cybersecurity
Finjan intends to grow through strategic acquisitions, investments, and partnerships in a diverse technology landscape.
Months 12 24 36 48 60 72 84 96 108
Current Finjan Cybersecurity
Current Finjan Cybersecurity
Current Finjan Cybersecurity
Future AcquisitionNumber 1Technology: TBD
Future AcquisitionNumber 1Technology: TBD
Future AcquisitionNumber 1Technology: TBD
Future AcquisitionNumber 2Technology: TBD
Future AcquisitionNumber 2Technology: TBD
Future AcquisitionNumber 2Technology: TBD
Notice Period
Early Harvest
Core HarvestIncome($)
Page 11© 2014 Finjan Holdings, Inc. ALL RIGHTS RESERVED
Seasoned Management Team
Licensing and enforcement infrastructure is critical to success for a publicly traded licensing company.
Shimon Steinmetz CFO and Treasurer
• 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 and CEO
• 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
• ND of CA Court appointed mediator, certified Special
Master for patent cases
• Former GC at Alta Devices, Phoenix Technologies and
iolo technologies
• Former VP, Global Affairs at Atmel Corporation (ATML),
overseeing global IP, litigation and licensing
Miyun Sung VP, Legal Counsel
• Former Counsel for Hogan Lovells
• Former Senior Counsel for MicroStrategy Inc.
• JD, Harvard Law School
• BA, Cornell University
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
Page 12© 2014 Finjan Holdings, Inc. ALL RIGHTS RESERVED
Distinguished Board of Directors
Michael Eisenberg Director
• Partner, Aleph, an early stage Israeli venture fund
• General Partner, Benchmark Partners
• Former Partner, Israel Seed Partners
Alex Rogers Director
• Managing Director, HarbourVest Partners
• Serves on multiple boards of private/public
companies
Eric Benhamou Director
• CEO and founder, Benhamou Global Ventures
• Former CEO, Palm
• Former CEO, 3Com
Daniel Chinn Executive Chairman
• Partner, Tulchinsky Stern Marciano Cohen Levitski & Co.
• Former Partner, Herzog, Fox & Neeman
• Former Partner, Israel Seed Partners
Harry Kellogg Director
• Former Vice Chairman of the board of Silicon Valley
Bank and affiliates
• Serves on multiple boards of civic and industry
organizations
Michael Southworth Director
• CEO, Contact Solutions LLC
• Former SVP of Global Wireless Solutions at Corning
Glenn Daniel Director
• Former Managing Director, Houlihan Lokey
Page 13© 2014 Finjan Holdings, Inc. ALL RIGHTS RESERVED
Investor Information and Recent News
• 9/4/2014 - Finjan Provides Litigation Update - Proofpoint Motion To Stay Denied
• 7/22/2014 – Finjan Provides Litigation Update – Blue Coat Markman Hearing Set for August 22, 2014
• 7/1/2014 – Finjan Files New Patent Infringement Lawsuit Against Symantec
• 6/24/2014 – Finjan Set To Join Russell Microcap Index
• 5/8/2014 – Finjan To Begin Trading On The NASDAQ Capital Market
• 4/8/2014 – Finjan Appoints Three New Independent Directors & Expands Board of Directors
• 3/18/2014 – Finjan Issued New U.S. Patent For Malicious Mobile Code Protection
Ticker Symbol NASDAQ:FNJN
Bloomberg FNJN:US
Recent Share Price1 $4.43
52-Week Range1 $3.03 – $15.00
Shares Outstanding2 22,368,453
Type of Stock Common Stock
Market Cap1 $96 M
Index Membership Russell Microcap
Current Cash $20.6 M
Current Debt 0
Headquarters New York
Full-Time Employees 11
Founded 1997
1: As of 9/4/2014 2: Per 10Q filed on 8/11/14
Page 14© 2014 Finjan Holdings, Inc. ALL RIGHTS RESERVED
Large Licensing
Universe
Successful
Licensing History
Active Patent
Enforcement
Strong Balance
Sheet
Pioneering
Technology
Seasoned
Leadership Team
Over $100 BN addressable market for cybersecurity, further growth through strategic acquisitions, investments, and partnerships leveraging our experience in licensing
Collected more than $145 M in licensing and enforcement income – far exceeding our current market value
Multiple business-to-business licensing negotiations and six current litigations, first Markman held on August 22, 2014
$20.6 M in cash and no debt*, sufficiently to operate beyond the next 12 months including licensing and litigation expenses
Battle-proven patent portfolio is a direct result of our R&D efforts and invested dollars
Licensing and enforcement infrastructure comprises experts in patent monetization, technology investments and capital markets
* per 10Q filed on 8/8/2014
Investment Thesis
Page 15© 2014 Finjan Holdings, Inc. ALL RIGHTS RESERVED
Contact Us
For more information
Friederike Edelmann
Director, Investor Relations
Finjan Holdings, Inc.
Direct: 646.350.4999
Email: [email protected]
122 East 42nd Street
Suite 1512
New York, NY 10168
www.Finjan.com
www.linkedin.com/company/finjan
www.twitter.com/FinjanHoldings
333 Middlefield Road
Suite 110
Menlo Park, CA 94025
Page 16© 2014 Finjan Holdings, Inc. ALL RIGHTS RESERVED
Appendix
© 2014 Finjan Holdings, Inc. ALL RIGHTS RESERVED Page 17
Acquired IP Companies Licensing Agents and Aggregators Technology-based IP Companies
Name Ticker Market Cap* Name Ticker Market Cap* Name Ticker Market Cap*
VHC $740 M ACTG $888 M FNJN $96 M
PCO $397 M RPXC $817 M IDCC $1.76 BN
UPIP$230
MPrivate ? TSRA $1.56 BN
VRNG $95 M Private ? RMBS $ 1.40 BN
MARA $64 M Private ? QCOM $127 BN
SPEX $39 M Private ? PRKR $121 M
Peer Group Analysis
Segmentation of companies who license Intellectual Property – based on their business model.
Page 18© 2014 Finjan Holdings, Inc. ALL RIGHTS RESERVED
*Market Cap as of 9/4/2014
Security Patent Landscape
Patent litigations involving operating companies in the security industry.
De
ep N
ines
Intel (McAfee)
Sophos
Finjan
Legend
Party asserting patent(s)
Party accused of infringement
Active litigation
Past litigation
Party
Party
Key Takeaways
• IP drives momentum in technology industries (e.g., mobile handset)
• Innovators initiate, challengers receive patent litigations
• Cybersecurity IP is valuable
Page 19© 2014 Finjan Holdings, Inc. ALL RIGHTS RESERVED