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PAGE DERYCZ
SCIENTIFIC
CONFIDENTIAL
ROTH OC GROWTH STOCK CONFERENCE
DERYCZ
MARCH 2011 SCIENTIFIC
TICKER: DYSC
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PAGE DERYCZ
SCIENTIFIC
SAFE HARBOR STATEMENT
In conjunction with the provisions of the safe harbor section of the private
securities litigation reform act of 1995, this document contains certain
forward‐looking statements pertaining to future anticipated projected
plans, performance and developments, as well as other statements relating
to future operations and results.
Any statements in this document that are not statements of historical fact
may be considered to be forward‐looking statements. Written words such as
“may,” “will,” “expect,” “believe,” “anticipate,” “estimate,” “intends,” “goal,”
objective,” “seek,” ”attempt” or variations of these or similar words,
identify forward‐looking statements.
These statements by their nature are estimates of future results only and
involve substantial risks and uncertainties. There can be no assurance that
actual results will not differ materially from expectations.
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INVESTMENT HIGHLIGHTS
• Unique content marketplace sitting at the crossroads of the $285 billion
Information Services sub‐segment of the $1 trillion Periodicals industry
• Industry leading services recognized as a pioneering in a unique market
niche
• Desirable, proprietary and hard to replicate assets
• Experienced management team with a history of creating shareholder
value
• Technology driven service model with significant operating leverage
• Solving time, quality and cost problem for content distribution in
transitioning marketplace
• Proven track record of dynamic revenue growth and financial
performance
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CONFIDENTIAL
COMPANY OVERVIEW DERYCZ
SCIENTIFIC
TICKER: DYSC
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SITTING AT THE CENTER OF
THE INFORMATION SERVICES VALUE CHAIN
Clients rely on DYSC to deliver timely access to mission critical
content used to make strategic decisions on a daily basis
PUBLISHERS CUSTOMERS
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Changing an Industry via the Internet
Industry Status Quo Internet Revolutionary New Paradigm
Travel agencies dominated, Buy tickets, rent cars, book hotel rooms online, power
disintermediation rules shifts to consumer
Big box stores, malls, retail outlets One click to purchase, buy online via credit cards
Newspapers, classifieds, flea The most successful online business has become the
markets, auctions largest online marketplace
Paper resumes & experience search Electronic resumes, employer & employee screening
firms tools
DYSC TIMELINE
Pools Press is Reprints Desk Reprints Desk Derycz Scientific TDI Library
Acquired by Ranked First in Launches Reports 121% Services
Derycz Outsell's Premier Product: Revenue Increase transitions
Scientific Document 'Mighty Linkout for Second Fiscal customer
Delivery Study Machine' Quarter 2010 base to
Reprints
Desk
11/2006 2/2007 3/2008 4/2008 2/2009 6/2009 12/2009 2/2010 11/2010 12/2010 2/2011
THE DYSC PLATFORM
DYSC provides a DERYCZ
controlled marketplace
that brings together
SCIENTIFIC
premium publishers of
specialized journals and
periodicals with
Corporate Consumers
relying on such content
and data for strategic
decision making.
• Recently ranked #1 by industry analyst • Print‐on‐Demand Services for
Outsell Copyright and Regulatory sensitive
printing
• Provides reprints, ePrints and single
copies of articles to its customers • Acquired majority stake in Feb 2007
and launched new services and
• Copyright Management & Enforcement
branding in 2008
services for publishers
• Logistics management for corporate
• Specialized and proprietary approaches
communications
to content workflow management
• Integrated services are currently
under development
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DYSC PRODUCT PORTFOLIO
DYSC offers its PRODUCT DESCRIPTION
clients a Mighty Linkout Machine is an article retrieval solution that increases end
comprehensive MIGHTY LINKOUT MACHINE user satisfaction and significantly reduces document delivery costs – with
platform to address no maintenance costs and no IT involvement.
their content Single article administration and same‐day delivery with most articles
management needs delivered within a few minutes to a few hours, original and clean color
STM DOCUMENT DELIVERY
articles by default, PDFs without plug‐ins, and flexible ordering options.
Optional Rightsphere rights management integration is also available.
Scientific journal article aggregation and preparation, enabling inclusion
eCTD ARTICLE SERVICE within the reference sections of electronic Common Technical Document
(eCTD) submissions made to the FDA and other regulatory agencies.
Global article reprints procurement solution that enables healthcare and
healthcare communications companies to efficiently manage and
REPRINTS NRx
effectively utilize scientific journal articles to increase product
prescriptions and sales.
Group purchasing software service that consolidates fragmented article
reprint buying to deliver a global spending view and unlock company
REPRINTS GPO
purchasing power for savings on annual and per order bulk article reprint
purchases.
Outsourcing service that enables STM publishers to unlock the full
financial value of their content by enabling Reprints Desk to manage all
PUBLISHER SERVICE BUREAU or part of their journal article reprints business – order management,
short‐run and full web press printing, proactive sales promotion, and
secure ePrint hosting.
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BUSINESS MODEL:
THE RIGHT CONTENT AT THE RIGHT PLACE AT THE RIGHT TIME
• The Problem:
– ABC Pharmaceuticals has just released a prescription drug
it believes is superior to that of an established competitor
• A few seminal scientific articles prove this and ABC would
like to distribute 100,000 print and electronic copies of these
articles to physicians
• The Solution:
– DYSC provides a platform for ABC Pharmaceuticals to
procure the desired scientific articles, content and rights in
a timely, cost effective, efficient and easy to use fashion
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CONFIDENTIAL
WHY DERYCZ SCIENTIFIC? DERYCZ
SCIENTIFIC
TICKER: DYSC
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A COMPREHENSIVE AND INTEGRATED SOLUTION
Copy & Digital Reporting &
• Creates direct Rights Management • Allows for efficient Tracking
relationships with indexing, searching,
publishers of unique • Procures rights to content delivery and • Tools for corporations to
content content for Clients use management track, report and share
cost effectively costly and hard to find
content to enhance
productivity and reduce
costs
DYSC Content
Publisher Relations
Engine
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HIGHEST QUALITY SERVICE OFFERING
IN THE MARKETPLACE
DYSC subsidiary
Reprints Desk vaulted
to the top of the
industry’s rankings
against long running
incumbents in just its
3rd year of operation
and continues to lead
the pack year after year.
HIGHEST SCORE
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CLIENT CASE STUDY: “X” Life Sciences
Challenges:
• Sought to reduce platform fees associated with 3rd party document delivery platform for scientific literature.
• Desired elimination of costly expedited (“rush”) service fees.
• Looking for comprehensive and integrated product that increased staff productivity
Solutions:
• Adopted and launched Reprints Desk’s ultra‐rapid article supply system enterprise‐wide.
• Immediately transitioned to a full self‐service model for end users with the first line of support pushed to the Reprints
Desk.
• Seamlessly integrated with existing discovery platforms such as PubMed and OVID.
• Deployed a tailored version of Reprints Desk’s article resolver solution that quickly matches orders against subscriptions,
then delivers article‐level links.
Results:
• Eliminated more than $10,000 in annual platform fees and $30,000 in rush delivery surcharges.
• Received articles in clean PDF format 100% of the time and improved ordering and delivery speed.
• Created user satisfaction and saved time for administrators who no longer had to intervene in document delivery operations.
Powered by Reprints Desk, the Literature Services department optimizes spending on scientific literature and
supports R&D and medical information with DYSC ultra‐rapid document delivery service.
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RECOGNIZED BY LEADING CLIENTS & EXPERTS
ORGANIZATION DESCRIPTION
Peter Derycz named to 2010 "PharmaVoice 100"
Readers of PharmaVoice magazine bestowed honor
on the 100 most inspiring people in the life sciences
industry
Trust
Relationships
with Clients
& Publishers
DYSC Distribution
Platform
Reputation
for Excellence
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CAPTURING A GLOBAL MARKET OPPORTUNITY
DYSC serves clients globally which helps mitigate the political and economic risk of any given economy
and drives penetration into new and emerging markets providing opportunities for rapid growth
$24.9m
$14.6m
$12.2m
$3.8m
$0.4m
2006 2007 2008 2009 2010
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INTEGRATION OF DIGITAL INFORMATION AND
PHYSICAL LOGISTIC CAPABILITIES
Derycz is following Expected strategic acquisition of European Information
the Netflix and
Amazon models of Logistics Services Company TAAG to serve growing
integrating digital European demand.
information and
logistics capabilities in
order to competitive
Strategic Value
differentiate and • Replicates successful U.S. model with Pools Press
aggressively capture • Expand physical presence in Europe
market share.
• Expand European customer base
Financial Value
• $13 million in TAAG revenues represent an increase Derycz consolidated
revenues of 50%
• Immediately accretive to consolidated EBITDA
• All stock transaction preserves cash for continued growth
Acquisition expected to be completed by March 31, 2011.
Life‐science companies are increasingly using scientific literature in evidence‐based promotions and
increasingly seeking single‐source suppliers
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GROWTH STRATEGY
Revenues
Further Penetrate Market
and Take Share
Continue to Expand International Expansion
Customer Base
Develop Broader Industry
Resources
Develop New Consulting
Service Offerings Content Management
Platform & Services
Further Gain Share of Spend
from Existing Customers
Increase Sales to Existing Target Most Rapidly Growing
Customers Customers
Cross‐Sell Full Product Range
Pursue Strategic Expand Range of Services
Acquisitions Increase Customer Base
Time
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SCIENTIFIC
PROVEN MANAGEMENT TEAM ALIGNED WITH SHAREHOLDERS
CONFIDENTIAL
FINANCIAL OVERVIEW DERYCZ
SCIENTIFIC
TICKER: DYSC
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PAGE DERYCZ
SCIENTIFIC
CONSISTENT QUARTERLY REVENUE GROWTH…
$9,000,000
$8,000,000
$7,000,000
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$0
12/31/2008 3/31/2009 6/30/2009 9/30/2009 12/31/2009 3/31/2010 6/30/2010 9/30/2010 12/31/2010
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…DRIVING SIGNIFICANT ANNUAL REVENUE GROWTH
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GROSS PROFIT MARGIN IS ACCELERATING:
LAYING THE FOUNDATION TO SCALE
Gross Margin has been
growing significantly in
absolute dollars (CAGR
of 87.1%) while Margin
% has reflected recent
investments in content
and royalties.
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Consistent Stock Price Appreciation
DYSC Price History Compared with the NASDAQ Composite (3/7/10 – 3/7/11)
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PAGE DERYCZ
SCIENTIFIC
INVESTMENT HIGHLIGHTS
• Unique content marketplace sitting at the crossroads of the $285 billion
Information Services sub‐segment of the $1 trillion Periodicals industry
• Industry leading services recognized as a pioneering in a unique market
niche
• Desirable, proprietary and hard to replicate assets
• Experienced management team with a history of creating shareholder
value
• Technology driven service model with significant operating leverage
• Solving time, quality and cost problem for content distribution in
transitioning marketplace
• Proven track record of dynamic revenue growth and financial
performance