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8-K - 8-K - FINJAN HOLDINGS, INC. | fnjn8k-032818.htm |
Investor Presentation
March 2018
NASDAQ: FNJN
Safe Harbor Statement
The following presentation is prepared as of March, 2018 and
outlines 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 on March 14,
2018 or Quarterly Report on Form 10-Q filed with the SEC 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.
© 2018 Finjan Holdings, Inc. ALL RIGHTS RESERVED
2
Finjan Highlights
© 2018 Finjan Holdings, Inc. ALL RIGHTS RESERVED
3
Investment in Innovation
Landmark
Patented Technology:
(1) Finjan, Inc. (2) Finjan
Mobile (3) Finjan Blue
Experienced
Management Team
Successful Licensing &
Enforcement History
Mobile Security
Products
Strong Revenue Momentum
2017 Revenues > $50M
2017 EPS at $0.90/share
Solid Balance Sheet
$80M in Cash as of 1Q18E
Advisory Services and
Cybersecurity Thought
Leadership
Proven Cybersecurity Innovator with Multiple Pathways Towards Future Growth
Fiscal Year 2018: Off to a Strong Start
© 2018 Finjan Holdings, Inc. ALL RIGHTS RESERVED
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EPS
$0.02
EPS
$0.90
EPS
$0.02
EPS
$0.90
E
ROE (12%)
ROE (18%)
ROE 7%
ROE 49%
*
• Includes redemption and retirement of $13.6M remaining Series A-1 Preferred Shares
Global Issue
© 2018 Finjan Holdings, Inc. ALL RIGHTS RESERVED
5
“Rome wasn’t built in a day, but
data breaches frequently were.
The time to compromise is
almost always days or less, if
not minutes or less.”
– Verizon Data Breach Report 2016
64,199
Security Incidents
82
Countries Reporting
2,260
Confirmed Data Breaches
700M
Compromised
Records
$400B
Cost Quadrupled
From 2013 – 2015*
$1.2T
Costs To Quadruple
by 2019**
Verizon Data Breach Investigation Report for
2016: countries represented in combined
caseload
* Lloyd’s of London
** Juniper Research
20 Years at the
Center of
Cybersecurity
Finjan Technology
& Patent Licensing
Software &
Hardware
Malicious Code
Research Center
M86/Trustwave
Merger
Innovation Fund
(JVP)
NASDAQ: FNJN Finjan Mobile Cyberisk Advisory
Services
© 2018 Finjan Holdings, Inc. ALL RIGHTS RESERVED
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Finjan Blue
Finjan Blue
+25 Patents
© 2018 Finjan Holdings, Inc. ALL RIGHTS RESERVED
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IP Licensing
Portfolio of landmark cybersecurity patents
resulting from internal R&D, in-house
product development and strategic
partnerships
Patents cover core functionality
and features used in modern
security architectures Finjan
Cybersecurity
Business
Diversified public company
focused in four areas
Finjan Mobile
VitalSecurity™ to protect consumer’s mobile
devices from the internet’s malicious content;
incorporates Finjan patented technologies
Exploring protecting mobile phones
in the workplace while securing
personal and corporate data
Cybersecurity
Advisory Services
CybeRisk™ Security Solutions Ltd.
Based in Palo Alto with offices in Tel Aviv
Risk assessment & Risk advisory
services tailored to meet compliance and
governance needs from “server room to
the board room”
Investments In
Innovation
$5M commitment to innovation
fund managed by Jerusalem
Venture Partners (JVP)
Limited Partner in early-stage
cybersecurity technology companies
alongside Cisco, Qihoo360 and Alibaba
Marquee List of Licensees
© 2018 Finjan Holdings, Inc. ALL RIGHTS RESERVED
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>$350M in Licensing Fees Generated, to-date
*Selected List of Licensees
2005 2018
Entered into Confidential License Agreement:
$17.5M received by Finjan with $5M receivable for resolution of all patent matters and Cross License
Entered into Confidential License Agreement for settlement of all Blue Coat and Symantec matters:
$65M received by Finjan with potential of $45M additional royalties based upon acquisition of certain entities w/in 4 years
SDCA
Judge Bencivengo
Markman completed
Germany Nullity (validity): November 2018
SDCA Trial scheduled for February 4, 2019
NDCA
Judge Freeman
Willfulness reinstated
Markman: June 15, 2018
Trial: June 1, 2020
NDCA
Judge Hamilton
All IPR’s resolved, Stay still in place pending
appeals
NDCA
Judge Freeman
Case initiated August 4, 2017 Markman: October 12, 2018
NDCA
Haywood Gilliam
Case initiated August 16, 2017
NDCA
William Alsup
Case initiated September 29, 2017 Mini-trial on liability ”Shootout:” July 26, 2018
NDCA
Jon Tigar
Case initiated on December 5, 2017
NDCA
Judge TBD
Case Initiated on March 21, 2018
Select Litigation Catalysts
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© 2018 Finjan Holdings, Inc. ALL RIGHTS RESERVED
“Finjan shows patent owner
can prevail at IPR institution
stage”
~ Practicing Law
Institute
“The Symantec settlement
has at the very least
validated the strength of
[Finjan’s] IP.”
~ IAM
“USPTO rulings on Finjan
patents strengthen cases
against Blue Coat Systems
and others”
~ ThePatentInvestor
“Finjan wins big patent
victory as USPTO denies
institution on 6 Symantec
IPR petitions”
~ IP Watchdog
“Sophos was hit by a $15 million
infringement verdict in a case brought
by publicly traded Finjan Holdings,
Inc., The latest development
in a litigation campaign that has
stretched on for over a decade.”
~ RPX
“Comb through records of intellectual
property disputes in the cybersecurity
market and one name comes up again
and again….Finjan Holdings Inc.”
~ Bloomberg
“Finjan patents ranked #4 of “patent
owners that had their patents
challenged in petitions
for IPR, CBM or PGR Review in 2015.”
~ Docket Navigator
Durable Cybersecurity Patent Portfolio
© 2018 Finjan Holdings, Inc. ALL RIGHTS RESERVED
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80% Success Rate in Defeating Administrative Challenges at the USPTO and PTAB
10
99% Patent Claims Remain Unchanged
“The “behavior-based” approach to virus scanning was pioneered by Finjan and is disclosed in the ‘844 patent’s specification.”
~ Circuit Judge Dyk, CAFC, Case No. 2016-2520, Decision, January 2018
VitalSecurityVPNTM – User Adoption Growing
© 2017 Finjan Holdings, Inc. ALL RIGHTS RESERVED
• >500K installs in less than 6
months
• Over 100k registered users
captured for a 20% conversion
rate: installs to registered
users
• Expanded to more than 35
locations WW
• 4.5 star rating in Google Play
Store
11
VitalSecurityVPNTM - Roadmap
© 2017 Finjan Holdings, Inc. ALL RIGHTS RESERVED
• Collect in-app data on consumer behavior
to enhance performance
• Data Use
• Location
• Add in-app messaging and alerts to
increase conversion to paid subscribers
• Auto-connect VPN when connected to
unsecured networks
• Promotions and alternative pricing models
• Chrome/Safari/Firefox Extensions for
Tracker Blocking and Malware Scanning
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CybeRisk Advisory Services
13
© 2018 Finjan Holdings, Inc. ALL RIGHTS RESERVED
Australian Embassy Israel
Risk Assessment & Risk Advisory Services
– Attack and penetration testing
– Risk and oversight
– Threat intelligence
– Defense optimization
– Thought leadership
Strong Cash Position; Sustained Revenue Growth
© 2018 Finjan Holdings, Inc. ALL RIGHTS RESERVED
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• Includes redemption and retirement of $13.6M remaining Series A-1 Preferred Shares
EPS
$0.02
EPS
$0.90
ROE (12%)
ROE (18%)
ROE 7%
ROE 49%
*
E
Investor Summary
© 2018 Finjan Holdings, Inc. ALL RIGHTS RESERVED
15
Key Statistics (as of March 27, 2018)
Ticker FNJN (NASDAQ)
Stock Price $3.14
52-Week Trading Range $1.51 - $4.06
Market Cap $87.0M
2017 EPS $0.90
Common Shares Outstanding 27.7M
Current Cash $80M (Estimate 1Q18)
Preferred Shares Outstanding 0 (Retired 1Q18)
Debt $0
Contact Us
© 2018 Finjan Holdings, Inc. ALL RIGHTS RESERVED
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www.finjan.com
Vanessa Winter
Director of Investor Relations
Finjan Holdings, Inc.
650-282-3245
vanessa@finjan.com
2000 University Ave., Suite 600
E. Palo Alto, CA 94303
@FinjanHoldings
Linkedin.com/company/finjan
Facebook.com/FinjanHoldings