14:30 18:15 Private Equity Focus - Estrela HIGH TECH AND TELECOM COMPANIES: INVEST IN THE FRENCH EXPERTISE

Transcription

1 14:30 18:15 Private Equity Focus - Estrela 1 HIGH TECH AND TELECOM COMPANIES: INVEST IN THE FRENCH EXPERTISE

2 2 CODASYSTEM You shoot, You prove. Frederic LEVAUX, Chief Executive Officer, Codasystems

3 What do we do? 3 Our solution creates «Original Digital Pictures», these originals cannot be modified and are stored in optimal security conditions. These Pictures are watermarked, encrypted, time-stamped, localized and signed. These Picture have legal value in court, They can be taken with a regular digital camera and PC or with a Mobile phone The solution is patented and protected worldwide since 2002 The solution is composed of a capture software on the mobile, a secured storage infrastructure and a web platform for picture integrity checking and reporting The solution is used by a lot of different sectors (retail, construction, real estate, field service..), basically any sector where proof of service can be made with a picture The company currently has more than 250 mobiles in operation for approx. 10 major clients acquired since Q1 06 Capturing devices Sample pictures Web service

4 The Value Proposition 4 CodaSystem creates certified digital pictures Pictures taken are localized, timestamped and signed by the author These picture are the only costeffective alternative to long and costly legal procedures Pictures are encrypted and watermarked at the time of capture These picture have legal value in court because they are in total conformity with all norms and laws in Europe and have had their first legal victories Most of our clients don t need to go to court, but using Codasystem Pictures adds credibility and professionalism to their activity / service / performance

5 Markets 5 Targeted sectors Retail Advertising and Billboards Cleaning Services Field Service Companies Security Real Estate Construction operators Engineering companies Detectives Express delivery / Transporters / Movers Law enforcement / Civil servants Insurance companies Independent experts in Insurance, construction Bailiffs / Legal experts / Attorneys, lawyers Graffiti Advertising / billboards Retail / Merchandising, Construction / real Estate ANY SECTOR WHERE PROOF OF SERVICE CAN BE MADE WITH A PICTURE

6 How does it work? GPS localization 2 GSM localization Picture Transfer GSM/EDGE/3G/WIFI/ LAN/xDSL ), encryption 3 Picture Integrity Testing Checking for any modification 4 Picture Archiving For Future reference and legal value 6 Tablet PC & camera or Smartphone / mobile phone 1 Picture Capture Localization (GPS/GSM/Wifi), Time stamping, Watermarking & encryption CodaSystem Servers CodaSystem archiving 5 Duplicate Picture Delivery to end user To use in their reporting / data mgmt system End user End User

7 Legal Value, How? 7 By conformity to norms and laws Electronic Signature: conformity with electronic signature law of March and related decrees By the Legal Audits of our solution Legal Audit have been performed by independent legal firms specialized in dematerialization issue (report available upon request ) Numerical Archiving : Conformity with French and European Norm NFZ Integrity : conformity to the European recommendation RSC 3029 Time Stamping : Use of Time Stamping authority in conformity to European recommendation RSC 3161 Confidentiality : conformity with the norm ISO Network Security : conformity with the norm ISO TR System Security : ISA Certified (in process) By the Technical Audits performed Codasystem has been technically audited by experts of the FNTC (fédération nationale des tiers de confiance) and is currently undergoing Different ISO certifications Regular Intrusion Audits By the results obtained in court First cases have been taken to court and produced in CodaSystem s client success (referral available upon request) By professional recognition CodaSystem has been awarded the innovation award for 2005 by the FNTC And the Orange Syntec Innovation Trophy in 2006

8 Positioning 8 Our Job CodaSystem is the first industrialized technological solution to instantly capture digital proof, of what you want, where you want and when you want. WHO - WHAT WHEN WHERE Legal Benefits CodaSystem, offers you and instantaneous and unlimited legal protection Quality Benefits With CodaSystem, provide your clients with the proof of you professionalism Other concrete Benefits : Productivity : The capture of the evidence, the creation of a report and the distribution of theses documents can be made on the spot in minutes Physical : Digital document archiving helps gain valuable square meters Financial : Avoiding expensive intervention by experts, officials to create evidence, systematically generating opposable documents saves costly judicial fees and reduces potential loss (payables..) Quality : Having digital evidence of work performed helps securing a higher quality perception Optimization : Have your resources allocated to real value added tasks

9 CodaSystem Products 9 PC Software All types of Tablet PC Itronix, HP, Acer, Flybook + Canon Digital Cameras

10 CodaSystem Product 10 Mobile Software Mobile with integrated GPS receivers or A-GPS support (WM, Symbian* / Java*) Mobiles without-gps but with localization through operator service (WM, Symbian* / Java)*) *dispo Q4 2006

11 The Web Service 11 Ludendo Example

12 The Web Service 12

13 The company 13 Time line Created in 2002, R&D for 3 years First prototype in Q First field test with clients Q First client signed in Q Finished product on mobile phones in Q3 05 Early stage funding round in Q3 05 (< 1M ) Won Innovation Trophy (Security Federation) First major client sign-up, Q2 06 First Sales in 05, up 150% as of Q2 06 Won Innovation Trophy (Orange) New Funding round closing in Q3 06 (> 2 M ) Team of 11 people More then 10 Active Accounts More then 200 mobiles currently active Partnership agreement with Microsoft (startup program), all major telecom operators, and mobile manufacturers

14 Assets 14 Key Technical Skills Cryptography Proprietary watermarking algorithms development adapted to mobile platforms Audio, video signal treatment Embedded devices development Network Security maintenance Transmission protocol security Device Security management Legal implication of IT security Security Value chain management Key Certification ISO (IT Security) Certification Microsoft (people, platform, applications..) European norms and laws on IT security Legal Victories Patent Owner of a Invention patent (Inspection apparatus) delivered in France and extended Worldwide

15 Strategy 15 A 2 step Strategy 1. Independent Development and positioning as a complete certification value chain Keeping control of two major aspects of our business : Capturing software and secured infrastructure Independent from telecom operators, and multi-device, Audio and videos developments International Development Objective : sign-up key accounts and have the solution recognized as a unique cost-effective professional tool 2. Start OEM Relations (licensing) and positioning as a certification «authority» Sell API license for capturing digital audio, video and image to devices manufacturers (phones, camcorder, cameras, webcam, CCTV..). Eventually keep control of certain sensitive elements or capture (steganography algorithms) Keep control of security and legal conformity Manage and maintain security infrastructure and storage Objective : Install the company as an independent authority for original numerical documents.

16 Shoot & Proof 16 Shoot & Proof Strategy With our APIs developed for integrators, editors and device manufacturer, the shoot & Proof label will take over the CodaSystem products.

17 Business Model 17 Product Business Model has two components Software license For our standard application we charge a flat license fee per mobile device For client-specific application we charge e flat license fee + integration and development fees API and SDK for systems integrators: we sell our certified photo capture for SDK to system integrators to add legally valid pictures to the application the develop for their clients Monthly subscription In all cases we charge a monthly subscription for each mobile device in activity We store all picture for the legal period asked by the clients ( years) Mobile devices are bought directly by the client, GSM/GPRS subscription are paid by the client

18 Distribution 18 Double approach Direct : We directly attack large accounts to create interest around legally valid pictures and their associates benefits to top management. The Target being to sign-up 2 to 3 large clients in each targeted sector Indirect : CodaSystem set up a distribution network through different kinds of partner (System integrators, independent mobile distributors, mobile operators, MVNO ).

19 Status 19 Mobile Fleet Status We more than double our fleet every Quarter since commercial launch Q Q Q Q Q3 2006

20 Status 20 Sales We are currently above our forecasts Forecast Actual Q Q Q Q Year 06

21 Clients 21 Construction / Engineering Distribution, retail Local Authorities Real Estate Security Field Marketing Media

22 US Market Potential 22 United States Market The American Market is one of our primary target for the following reasons : High penetration level of Smartphone High availability of location system (GPS, mobile, wifi..) Major carriers looking to offer value-added services to increase ARPU Highly competitive Business Environment leading to heavy use of legal services and / or binding contractual agreements in B to B We offer for these market a cost-competitive way to create undisputable «proof of work done» with their mobile phones. Penetration Strategy CodaSystem makes available to telecom operators, mobile phone manufacturers and mobile integrators a piece of software that adds legal capabilities to mobile phone. Therefore we will rely on partners to enter the US market, these partners can be global (operators, manufacturers) or specialized in different sectors (construction, real estate, retail..) Competitive Landscape No direct competition has been identified worldwide Partial competition on pieces of the value chain (watermarking, secured exchanges ) Main competition comes from «normal» use of photographs that we have to convert to our «shoot and prove» photographs. The concept and the value chain is protected by a worldwide patent since 2002

23 US Market Strategy and Timing 23 Strategy & Timing We are looking to make our first contact with potential partners in Q4 06 or Q1 07 Start Legal validation and field test in Q2 or Q3 07 Probable new funding round for international expansion (Asia also big market potential) in Q3 or Q4 07 Team and Resources Frédéric Levaux : CEO, BBA + MBA (HEC). Ex -entrepreneur and Strategy consultant Worked for 4 years for the U.S. Government and Department of Commerce, very good knowledge of the American Market 1 additional resource, probably non-french will join the international development team in Q2 07

24 References 24 Technology Winner of «Best Innovation» by the FNTC in 2005 Selected as one of the «BEST INNOV» at Capital IT 2006 Winner of Innovation trophy in 2006 by SYNTEC and France Telecom Strong Partnership with Microsoft (IDEES program)

25 Contacts 25 Frédéric Levaux Président CodaSystem France - S.A.S. Paris Cyber Village Boulevard MacDonald Paris Tél : Fax : CodaSystem Luxembourg S.A. Technoport Schlassgoart 66, rue de Luxembourg L-4221 Esch-sur-Alzette LUXEMBOURG Tel : Fax :

26 New York, Monday, October 23,