3. Safeguard Q3’12 Highlights
• Continue to Build Value
• Partner Company Aggregate Revenue Guidance Increased
• Customer Wins, Strategic Partnerships, Regulatory Progress
• Penn Mezzanine Generating Interest and Fee Income
• Deal Pipeline Full of Exciting Capital Deployment Opportunities
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4. Safeguard Strategy
• Exploit Five Strategic Themes
• Maturity, Migration, Convergence, Compliance and Cost Containment
• Typically Deploy up to $25M in Growth Capital per Partner Company
• 16 Partner Companies Today
• Exits Timed to Maximize Risk‐Adjusted Returns on Capital
• Targeted Aggregate 2x to 5x, at a Minimum, Given Evolving Diversified
Deployment Strategy
• Realized Gross, Aggregate Cash‐on‐Cash Return of 2.0x on Non‐Legacy Capital
Deployments Since 2006
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8. Financial Highlights
• Net Cash, Cash Equivalents and Marketable Securities
• $183.1M at 9/30/12 vs. $211.9M at 12/31/11
• Q3 Primary Use of Cash = $16.4M
• 2012 Projected Use of Cash between $65M to $85M
• Capital Deployment into New Partner Companies
• Follow‐on Funding for Current Partner Companies
• Follow‐on Funding for Penn Mezzanine Participations
• Corporate Expenses
• Platform Expansion
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10. Safeguard Partner Companies
• 16 Partner Companies Today
• 26 Board Seats Across 16 Companies
• 15 Companies Generating Revenue
• Deployed $188.3M in Current Partner
Companies as of September 30, 2012
• Realized $646M Since January 2006
* Aggregate revenue guidance for 2012 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 to Safeguard by such companies. Safeguard reports the
revenue of its equity method and cost method partner companies
on a one-quarter lag basis.
NYSE:SFE
13. SFE Third Quarter 2012 Financial Results
Replay Information
877‐344‐7529
(International) +412‐317‐0088
Access Code: 10019740
Replay available through
November 26, 2012 at 9:00am EST
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14. John E. Shave III
VICE PRESIDENT,
BUSINESS DEVELOPMENT &
CORPORATE COMMUNICATIONS
jshave@safeguard.com
P 610.975.4952
E IR@safeguard.com
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