Post on 21-Mar-2020
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: ipernica@ipernica.com
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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6
“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 Partner of Choice”
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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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“IP Partner of Choice”
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Summary & Outlook8
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IP Assertion
5 Mergers & Acquisitions – NearMap
IP Commercialisation
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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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“IP Partner of Choice”
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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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“IP Partner of Choice”
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Summary & Outlook8
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IP Assertion
5 Mergers & Acquisitions – NearMap
IP Commercialisation
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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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“IP Partner of Choice”
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Summary & Outlook8
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IP Assertion
5 Mergers & Acquisitions – NearMap
IP Commercialisation
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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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Snapshot1
Corporate Overview2
People3
4 FY 2008 Results
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“IP Partner of Choice”
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Summary & Outlook8
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IP Assertion
5 Mergers & Acquisitions – NearMap
IP Commercialisation
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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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Snapshot1
Corporate Overview2
People3
4 FY 2008 Results
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“IP Partner of Choice”
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Summary & Outlook8
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IP Assertion
5 Mergers & Acquisitions – NearMap Pty Ltd
IP Commercialisation
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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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Snapshot1
Corporate Overview2
People3
4 FY 2008 Results
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“IP Partner of Choice”
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Summary & Outlook8
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IP Assertion
IP Commercialisation
5 Mergers & Acquisitions – NearMap
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IP Commercialisation
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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4 FY 2008 Results
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“IP Partner of Choice”
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Summary & Outlook8
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IP Assertion
IP Commercialisation
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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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