For personal use only Company Secretary · 11/21/2008 · 2008 Settlements -Ericsson • Claim...

ipernica ltd (ACN 083 702 907) Postal Address: P O Box 1327, West Perth, WA 6872, Australia

Street Address: 16 Ord Street, West Perth, WA Tel: +61 8 9420 8500 Fax: +61 8 9420 8547 Email: [email protected]

21 November 2008

The Company Announcements Office Australian Stock Exchange Limited Level 10 Exchange Centre 20 Bond Street Sydney NSW 2000 By: e-lodgement

Dear Sirs

PRESENTATION TO BE MADE AT AGM Please find attached a Power Point presentation that the Managing Director of the Company, Graham Griffiths will speak to at today’s Annual General Meeting which is to be held at 1.00pm at the Celtic Club, 48 Ord Street, West Perth, Western Australia. Yours faithfully

Trevor O’Connor Company Secretary F

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AGM Presentation

21 November 2008

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ASX Code: IPR

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Important Information

This presentation has been prepared by ipernica ltd (the “Company”). It is not intended as an offer, invitation, solicitation or recommendation with respect to the purchase or sale of any securities.This presentation should not be relied upon as a representation of any matter that a potential investor should consider in evaluating ipernica. The Company, their related bodies corporate or any of their directors, agents, officers or employees do not make any representation or warranty, express or implied, as to or endorsement of the Company, the accuracy or completeness of any information, statements or representations contained in this presentation, and they do not accept any liability whatsoever (including in negligence) for any information, representation or

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representations contained in this presentation, and they do not accept any liability whatsoever (including in negligence) for any information, representation or statement made in or omitted from this presentation.Prospective investors should make their own independent evaluation of an investment in ipernica. Nothing in this presentation should be construed as a “financial product advice" for the purposes of ss 849 and 851 Corporations Act and ASIC Policy Statement 122.In this document references may appear to the circumstances or future plans of ipernica. Such references are subject to uncertainties and contingencies and are hence subject to change. The Company makes no representation or warranty, express or implied, as to or endorsement of the accuracy or completeness of any information, statements or representations contained in this presentation with respect to ipernica.For

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Corporate Overview2

People3

4 FY 2008 Results

Snapshot1

Presentation Overview

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“IP Partner of Choice”

Summary & Outlook8

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IP Assertion

IP Commercialisation

5 Mergers & Acquisitions – NearMap

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Snapshot

• Diversified ASX-listed technology & intellectual property group• Two consecutive years of strong profit growth

� $15.2M NPAT (FY 2008)� $4.4M NPAT (FY 2007)

• Maiden dividend 1 cent per share fully franked• Strong financial position

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• Strong financial position � $32.7M cash at bank 30 Sep 08� no external borrowings

• Assertion business has provided the platform for growth• IP M&A strategy : NearMap acquisition to be completed today• Licensing portfolio growth• Consulting services : ipernica open innovation framework

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Our VisionNo. 1 IP commercialisation company

in the Asia-Pacific

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IP Industry – The Opportunity

• Growing recognition of IP as an asset class

– 85% of companies’ net worth relates to intangible assets (vs 15% in 1965) – PricewaterhouseCoopers

– Rapid growth in US patent licensing revenue –US$500 billion in 2007 (from US$10 billion in 2000)

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US$500 billion in 2007 (from US$10 billion in 2000)

• Significant hedge funds and private funds now focused on IP monetisation

• ipernica uniquely placed to assist clients in Asia Pacific region

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Snapshot1

Corporate Overview2

People3

4 FY 2008 Results

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6

Summary & Outlook8

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IP Assertion



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History

• 20 year R&D innovation / product company heritage

• Spin out from Telstra in 1998 (QPSX)

• Listed in December 2000

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Today

Commercialisation of intellectual property,

sourced within Asia Pacific,

across physical and life sciences

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Revenue Streams

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Revenue Streams

Investment in

high growthTechnologycompanies

Defence of

IP rights

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Service and

advisory fees

Innovation

licensing

programs

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Capital Structure & ShareholdersShares (post NearMap acquisition) 323 million

Employee Share Option Program 23 million (av. exercise price 17c)

Investor Options 12.5 million (exercise price 40c)

Cash at Bank $32.7M (at 30 Sept 2008)

Major Shareholders (post NearMap acquisition)

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Ross Norgard (Non-Exec Chairman) 14.9%

Stuart Nixon (CEO NearMap) 12.1%

Paul & Alison Farrelly 7.8%

Planetek Italia s.r.l. 4.9%

ANZ Nominees Ltd 3.1%

Flinders Property Investments 2.9%For

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Snapshot1

Corporate Overview2

People3

4 FY 2008 Results

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6

Summary & Outlook8

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IP Assertion



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Board of DirectorsRoss Norgard (Non Exec. Chairman)• Former managing partner of a “Big 4” accounting firm• Multiple Directorships

Dr Mary O’Kane (Non Exec. Director)• Chairperson Spatial Cooperative Research Centre

• Past board member of CSIRO and F.H. Faulding • Panel member Federal Govt National Innovation System Review

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Graham Griffiths (Managing Director)• 30+ years experience commercialising technology

• Held senior positions with AT&T (US) and NCR (Asia Pacific)

Conrad Crisafulli (Non Exec. Director)• Director of IP Commercialisation in the Office of R&D of Curtin University• Director of several start up technology ventures

• Panel member Federal Govt National Innovation System Review• Chief Scientist NSW

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ipernica Management Team

Jonathan Lawe Davies (General Counsel) :

Trevor O’Connor (Chief Financial Officer & Company Secretary) : CA• Experience in all facets of financial accounting across several industries • Skills in due diligence, valuation, financial modelling, capital raisings, etc

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Jonathan Lawe Davies (General Counsel) : LLB, Master of Laws (IP), BSc

• IP/IT Law Specialist • Over 13 years of international technology licensing

• Former legal counsel Amazon.com

Tim Jones (Gen. Mgr Business Development) : LLB, Master of Laws (IP), GAICD• Specialist in IP and IT law• Experience in IP infringements, international technology acquisitions & technology licensingF

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NearMap Management Team

Guy Perkins (Chief Operating Officer) :

Stuart Nixon (Chief Executive Officer & Founder)• Internationally recognized for setting global standard for geospatial image formatting (ECW format)• CEO & Founder of Earth Resource Mapping Ltd (ER Mapper)• Honorary Fellow of Spatial Sciences Institute of Australia

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Guy Perkins (Chief Operating Officer) :Bachelor of Engineering

• International geospatial industry leader• Former Senior Vice President, Asia Pacific, ERDAS Pty Ltd

• Former CEO & Director (US & Europe) Operations ER Mapper• Former Managing Director ESRI Australia

Simon Cope (Chief Technical Officer) : BSC Computer Systems and Electronics• Industry respected geospatial technology leader• Former Chief Technologist, ERDAS Pty Ltd• Former Chief Software Architect, ER Mapper LtdF

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Snapshot1

Corporate Overview2

People3

4 FY 2008 Results

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Summary & Outlook8

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IP Assertion



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2008 Financial Performance• Record $15.2M net profit after tax• 1 cent per share fully franked dividend• Cash reserves doubled to $36M – no external borrowings• Strong foundation for continued growth & diversification

FY

2008

%

IncreaseFY

2007

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Net Profit After Tax $15.2M 245%$4.4M

Profit Before Tax $17.9M 225%$5.5M

Revenue $45.2M 112%$21.3M

Net Equity $28M 133%$12M

Earnings Per Share 5.8c 224%1.79c

Dividend Per Share 1.0c --

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2008 – Key Highlights

• Strong performance by IP Assertion business:– $13M from Stat Mux program

– $30M from Ericsson program

• Further growth in IP Assertion portfolio

• Increased revenue from IP Commercialisation business– Contributing to stable, long-term income stream

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– Contributing to stable, long-term income stream

• New growth initiatives launched – IP based Mergers & Acquisitions (IP M&A)– acquisition of NearMap

• Comprehensive new marketing strategy – “IP Partner of Choice”

• Open innovation services framework developedFor

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Corporate Overview2

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4 FY 2008 Results

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Summary & Outlook8

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IP Assertion



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NearMap – Acquisition Overview

• ipernica acquired 100% of NearMap 21 November 2008

• Consideration :

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• Consideration :

• $4 million in cash +

• 60 million IPR shares

(2 year escrow) +

• 12.5 million 3-year $0.40 options F

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NearMap – The Opportunity• Rapidly growing global media (US$400 billion) and

geospatial (US$10 billion) industries

• Aiming to cover +20% of the world’s population (700 cities) with photomaps updated regularly

• Revenue model:– Location sensitive online advertising

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– Location sensitive online advertising

– Direct licensing to Government & industry

• Media company interest in geospatial web mapping solutions is driving growth and acquisitions: – Leica Geospatial purchased ER Mapper

– Microsoft purchased Vexcel

– Google purchased image America

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NearMap

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Technology to create very high resolutionaerial photomaps with multiple angle viewsFor

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NearMap

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Six months of history at your fingertips

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NearMap

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NearMap sees its technology evolving towards a full virtual and online representation of the world in both 2D

and 3D, being both up to date and high resolution

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NearMap

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NearMap’s technology was specifically developed to be an important part of this evolving and rapidly growing multi-billion dollar digital media market

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Corporate Overview2

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4 FY 2008 Results

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Summary & Outlook8

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IP Assertion

5 Mergers & Acquisitions – NearMap Pty Ltd


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IP Assertion

• Assertion Licensing involves the defence of intellectual property rights against third party infringement (IP owned by ipernica or its clients)

• Strategy is to build a portfolio of IP assertion programs, leveraging third party funding where appropriate

• Objective is to obtain compensation for unpaid royalties

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• Objective is to obtain compensation for unpaid royalties (past and future) and/or prevent continuing infringement

• Comparative company in the US : Acacia Technologies Group– Nasdaq listed (“ACTG”) : founded 1995

– 2007 Revenue : US$53M (51% increase)

– 2006 Revenue : US$35M

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Recent US Awards (US$3.6 billion in 2006)

2006

Settlement of patent infringement case for popular mobile email RIM

2008Damages award for infringement of medical stent patent.

Dr Saffran

The Value of Good IP

US$613m

US$595m

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2006 popular mobile email RIM Blackberry handset.

2004Damages awardfor Microsoft’s infringement of web browser technology.

Damages award.

2006

US$521m

US$253m

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2008 Settlements - Ericsson

• Claim against Ericsson for breach of 2003 Licence Agreement relating to ipernica’s patented SAR technology

• Writ issued in May 2004

• Claim settled in March 2008 prior to trial

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• Claim settled in March 2008 prior to trial– Total settlement : A$30M

– To IPR : A$20M (before tax and post profit share payments)

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2008 Settlements – Stat Mux Case I

Total : US$27MWrit All defendants

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• Client : Curtin University• US Patent infringement case • Contingent counsel: Fulbright Jaworski

Total : US$27MTo IPR : A$14M (before tax and post profit share payments)

WritJune ‘05

All defendantsSettled

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IP Assertion Portfolio

Stat Mux II

Database

SAR Germany

USA

USA

Germany

and others

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SAR Germany Germany

US Healthcare,

Banking & Database

• The potential value of each program varies considerably• ipernica’s financial interest varies by program, depending on co-

funding / risk sharing arrangement, typically we receive 50% of the net compensation (after deduction of legal fees and expenses and reimbursement of amounts paid by each party)

FST Portfolio USA

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Stat Mux Case II

LegalProcess

MarkmanHearing

Settlementsto date

TrialWritApr ‘07

(remaining defendants)

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• Client : Curtin University• US Patent infringement case• Contingent counsel: Fulbright Jaworski

East Texasjurisdiction

LegalProcess

MarkmanHearing

Settlementsto date

Gross Total : US$4M 14 July 2010

Trial

Nov 2010

WritApr ‘07

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Oracle Case

East Texasjurisdiction

LegalProcess

MarkmanHearing

USPTO(June ’05 –Sep ‘08)

TBA

Trial

TBA

Original WritOct ‘04

Patent Validity Contested – FST successful

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• Client : Financial Systems Technology• US Patent infringement case• Contingent counsel: McKool Smith

Contested – FST successful

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District CourtOn hold

SAR Case

District Court“Do DT and Siemens infringe SAR Patent?”

April ‘01

Patent Court“Should German SAR

Appeal Court

To re-start following Successful

Patent Appeal

July ‘04

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• ipernica developed and owned IP (telecommunications)

• Lloyds US$4M facility (80% co-payment of fees)

May ’02 June ‘04Ruling : “NO”

“Should German SAR Patent be held valid?”

24 Sep ‘08

Appeal Court

Ruling : “YES”

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FST Portfolio

• Client: Financial Systems Technology • Portfolio of US Database & Banking

Patents (valid to 2014)• Alleged infringement by a number of major

multinationals in a range of US industries:

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multinationals in a range of US industries:– Insurance; – Finance; and – Database

• Currently engaging contingent counsel

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IP Assertion



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ipernica brings the next generation of

technologies to life by providing

technology commercialisation services

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• Strong track record of successful IP commercialisation across many technical disciplines

• Building deep relationships with Asia Pacific research institutes and corporates creating innovative technologies (sources of IP)For

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A portfolio approach to acquiring, developing & realising value for intellectual assets

Licensing

annuity streams

IP Source IPR Portfolio (In-Licensed IP)

CSIRO Rapid Water Purification

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CSIRO Animal Sterility

CSIRO Safe Insecticides

University of Wollongong Bio-movement Device

Individual Inventor Laboratory Consumable

CRC Molecular Plant Breeding Temperature Switch Genetic test

NewSouth Innovations Modular Robot

Focus nowOut-licensing (Revenue)

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Consulting Services

Innovation Programmes

Transactions Software

`Design & Establishment

Processes for external

Capital Raising Intellectual Asset Management

Assisting clients unlock value from existing intellectual assets

ipernicaopen

innovation

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Listed companiesSample

Clients

Processes for external interfaces

Improving Commercial Returns

Intellectual Property Audits

Commercialisation Management

Contract & NDA Management

IP Valuation

Creating deal leverage through intellectual assets

open innovationframework

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Incubate high growth start-up technology companies for an equity interest and eventual trade sale or IPO exit

Ventures

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IP Assertion


5 Mergers & Acquisitions – NearMap Pty Ltd

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Summary• ipernica’s business is “creating value from

intellectual property rights”

• We identify commercially valuable IP in companies and research institutes across Australia and Asia Pacific, and generate revenue and asset growth through:

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and asset growth through:– Defence of intellectual property rights (IP Assertion)

– IP licensing programs (royalties)

– Open innovation consulting services (fees)

– Creation and management of high growth start-up technology companies (subsequent sale of equity investment) F

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Outlook• IP M&A

– NearMap – significant new revenue opportunity

– Consider further acquisitions

• Expansion of IP Assertion portfolio

• Harvesting from existing programs

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• Harvesting from existing programs

• Continue to build IP Commercialisation revenue– Marketing “IP Partner of Choice”

– Deploy “Open innovation” services platform

– Growth in IP portfolio and out-licensing revenues

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For personal use only Company Secretary · 11/21/2008 · 2008 Settlements -Ericsson • Claim...

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