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© 2015 WIDEPOINT CORPORATION. ALL RIGHTS RESERVED. January 2015 WidePoint CorporaDon Investor PresentaDon NYSEMKT: WYY

WidePoint Corporaon Investor Presentaon...10/8/14 New)Federal)Govt.)Agency 4 $2.7 9/30/14 Civilian)Aviation)Security)&)Subcomponent 2 $87.9 9/18/14 U.S.)Citizenship)and)Immigration)Services

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Page 1: WidePoint Corporaon Investor Presentaon...10/8/14 New)Federal)Govt.)Agency 4 $2.7 9/30/14 Civilian)Aviation)Security)&)Subcomponent 2 $87.9 9/18/14 U.S.)Citizenship)and)Immigration)Services

©  2015  WIDEPOINT  CORPORATION.  ALL  RIGHTS  RESERVED.  

January  2015  

WidePoint  CorporaDon  Investor  PresentaDon  

NYSEMKT:  WYY  

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Safe  Harbor  

Safe  Harbor  Statement  under  the  Private  Securi4es  Li4ga4on  Reform  Act  of  1995:  This  press  release  may  contain  forward-­‐looking  informa4on  within  the  meaning  of  Sec4on  21E  of  the  Securi4es  Exchange  Act  of  1934,  as  amended  (the  Exchange  Act),  including  all  statements  that  are  not  statements  of  historical  fact  regarding  the  intent,  belief  or  current  expecta4ons  of  the  company,  its  directors  or  its  officers  with  respect  to,  among  other  things:  (i)  the  company's  financing  plans;  (ii)  trends  affec4ng  the  company's  financial  condi4on  or  results  of  opera4ons;  (iii)  the  company's  growth  strategy  and  opera4ng  strategy;  (iv)  an4cipated  revenues  for  the  third  quarter  ended  September  30,  2014;  and  (v)  the  risk  factors  disclosed  in  the  Company's  periodic  reports  filed  with  the  SEC.  The  words  "may,"  "would,"  "will,"  "expect,"  "es4mate,"  "an4cipate,"  "believe,"  "intend"  and  similar  expressions  and  varia4ons  thereof  are  intended  to  iden4fy  forward-­‐looking  statements.  Investors  are  cau4oned  that  any  such  forward-­‐looking  statements  are  not  guarantees  of  future  performance  and  involve  risks  and  uncertain4es,  many  of  which  are  beyond  the  company's  ability  to  control,  and  that  actual  results  may  differ  materially  from  those  projected  in  the  forward-­‐looking  statements  as  a  result  of  various  factors  including  the  risk  factors  disclosed  in  the  company's  Forms  10-­‐K  and  10-­‐Q  filed  with  the  SEC.  

 

©  2015  WIDEPOINT  CORPORATION   2  

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•  Leading  provider  of  Managed  Mobility  Services  focused  on  Telecom  Lifecycle  Management  and  Cybersecurity  

•  Headquarters  in  McLean,  VA  

•  Approximately  300  employees  

•  Demonstrated  strong  performance  on  contracts  with  government  agencies  and  contractors;    Recent  commercial  wins  driving  enterprise  penetraDon  both  domesDcally  and  internaDonally  

Company  Overview  ProtecDng  and  managing  the  integrity  of  communicaDons  for  organizaDons  with  elegant,  easy  to  use  and  cost  effecDve  soluDons    

Managed  Mobility  Services  

Telecom  Lifecycle    Management  

Cybersecurity    SoluDons    

SoluDon    Partners  

Comprehensive,  leading-­‐edge,  secure  Managed  Mobility  Services  that  meet  the  

ongoing  challenges  of  acceleraDng  technology,  cyber  threats,  and  evolving  

customer  requirements  

TEM  soluDons,  including  a  customer  Web  portal,  inventory  tracking,  service  catalog  development,  mobility  invoice  audits,  24/7  help  desk  and  more  

Digital  cerDficates,  credenDals,  idenDty  management,  informaDon  assurance;  our  experDse  in  federated,  compliant  cybersecurity  is  applied  to  mobile  security  

Partnerships  to  offer  addiDonal  mobility  services  (Truphone,  Mobile  Pulse)  and  build  unique  technology  soluDons  (Thales  e-­‐Security,  Xceedium,  Spyrus)  that  further  differenDate  us  in  the  market  

Analyst  Expecta.ons  of  Q4  2014  revenue  $15M+    and  2015  revenue  of  $70M  -­‐  $80M  

©  2015  WIDEPOINT  CORPORATION   3  

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IdenDty  Assurance  &  Device  Management  Converging  

§  EVERY  organizaDon  –  enterprise  or  government  –  must  idenDfy  who  is  accessing  their  network  

§  TradiDonal  approach  of  passwords  and  secure  ID  cards  is  outdated  and  has  shown  itself  to  be  be  highly  vulnerable  to  unauthorized  access  –  3,000  KNOWN  Fortune  100  network  breaches  in  2013    

§  IT  managers  want  a  single  vendor  to  manage  idenDDes  and  physical  devices  

§  A  new  approach  is  needed  

§  Market  need  is  accelera.ng  

WYY  SoluDon  

§  Secure  idenDty  assurance  and  device  management  to  the  new  mobile  workforce  

―  Cost-­‐effecDve,  fully-­‐scalable,  mulD-­‐  plagorm  

―  Proven  and  cloud-­‐based  §  First  to  market  with    

Mobile  Security-­‐first  offering  

§  Only  provider  of  federated  idenDty  assurance  and  device  management  across  mulDple  hardware  and  OSs  

§  Combine  experDse  in  credenDaling  and  TLM,  both  with  more  than  10+  years  experience  

Problem  

©  2015  WIDEPOINT  CORPORATION   4  

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IdenDty  is  the  new  perimeter  in  the  cloud’s  virtual,  mobile,  and  sojware-­‐defined  world  

IdenDty  &  Access  Management  

Source:  TechCrunch  arDcle,  “Hacking  the  Bomom  Line,”  August  28,  2014.  [techcrunch.com/2014/08/28/hacking-­‐the-­‐bomom-­‐line/]      

$11B  

$10B  

$7B  

$6B  

$5B  

$4B  

$2B  $2B  

$47B  2017  

$6B  2014  

§  As  businesses  become  increasingly  connected,  Next  Gen  IdenDty  security  is  expected  to  grow  over  7x  by  2017  

§  Demand  for  secure  access  driving  significant  growth  in  the  idenDty  and  access  management  market  

©  2015  WIDEPOINT  CORPORATION   5  

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Cloud-­‐Based  IdenDty  Assurance  

Iden.ty  Assurance  in  the  cloud  

§  Uniform  –  fully  federated  soluDon  

§  MulD-­‐plagorm  –  BYOD,  mulDple  O/S  

§  Scalable  (sojware,  MicroSD,  hardware  embedded)  

Windows  Phone  

iOS  

Android  

BlackBerry  

PC  Notebook  

Cloud  

Windows  To  Go  

©  2015  WIDEPOINT  CORPORATION   6  

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WidePoint’s  proven  experDse  in  mobility  and  security  soluDons  uniquely  posiDons  it  to  address  a  wide  range  of  opportuniDes  

CompeDDve  Landscape  

Compe.tors  

TLM   MDM   IAM   EMM  

Expense  and  Lifecycle  Management  

Iden.ty    Assurance  

Commercial  Focus  (Enterprise  Mobility)  

Cross  PlaTorm  /  Federated  Model  

Segment  offers  this  capability   Segment  DOES  NOT  offer  this  capability  

©  2015  WIDEPOINT  CORPORATION   7  

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IdenDty  Assurance  Go-­‐to-­‐Market  

3,000  Key  Market  Drivers  

Corporate  Websites  Hacked  in  2013  3,000+  

Device  Addressable  Market  100M+  

$1  -­‐  $5   per  CerDficate  per  Month  

Expected  penetraDon  for  amribute-­‐based  security(1)  

Current  penetraDon  for  amribute-­‐based  security(1)  

70%  

5%  

WidePoint  Partners  

Handset   Security   Enterprise  

Enterprise  SoluDon  

First  Responders  

Other  Leading  OEMs  

Hardware  Security  Modules  

Windows  To  Go®  

Biometrics  

Hardware  Security  Modules  

TPM  

Cert-­‐on-­‐Device  

Machine-­‐to-­‐Machine  Creden.als  

Derived  Certs  

Other  Large  Enterprises  

(1)  By  2020  Gartner  predicts  70%  of  enterprises  will  use  amribute-­‐based  access  control  as  the  dominant  means  of  protecDng  criDcal  assets.    Gartner  esDmates  only  5%  of  enterprises  currently  use  amribute-­‐based  access  control.  

©  2015  WIDEPOINT  CORPORATION   8  

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Large  Market  Opportunity  Key  go-­‐to-­‐market  partners  

Major  OEMs  Named  (excluding  unnamed  addiDonal  OEM)  •  Kyocera  –  targeDng  first-­‐responder  and  secured  ruggedized  phone  market    (forecast  to  

exceed  25  million  users)  •  LG  –  Focus  top  20  global  accounts  w/  more  than  30  million  Global  Enterprise  Clients  •  Windows  To  Go/SPYRUS  –  Forecast  to  >  10’s  of  millions  of  users  (10%  secured  marketplace)  •  Trusted  PlaTorm  Module  (TPM)  –  Windows  PCs,  tablets,  and  phones  

–  WYY  has  demonstrated  that  they  can  put  a  device  cert  into  a  TPM  –  majority  of  all  enterprise-­‐ready  PCs  come  equipped  with  TPM;  the  total  available  market  is  over  500  

million  enterprise-­‐ready  PCs  installed    

Major  Carriers  Named  (excluding  several  carriers  in  early  stage  discussions)  •  AT&T  

–  WYY  is  working  with  Federal  and  Enterprise  management  teams  –  Invited  to  parDcipate  in  the  AT&T  Cyber  Conference,  where  WYY  generated  more  than  125  acDve  

leads  cover  mostly  large  enterprises  as  well  as  9  Fortune  500  companies  

•  BT  Global  –  BT  Global  (US-­‐based)  is  responsible  for  bringing  security  soluDons  to  BT’s  top  250+  clients,  with  more  

than  50%  global  enterprises.    –  BT  services  more  than  4  million  clients  

©  2015  WIDEPOINT  CORPORATION   9  

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2014  Evidence  of  Success  –  Gov’t  

•  Awarded  task  orders  with  contract  value  in  excess  of  $190  million  on  sole-­‐awardee  $600  million  DHS  BPA  –  4  major  agencies  remaining  

     

•  U.S.  Army  Corps  of  Engineers;  Two  agencies  under  the  Department  of  JusDce;  and  three  agencies  within  the  Department  of  Health  and  Human  Services  (HHS)  

•  Western  States  ContracDng  Alliance  (WSCA)    

•  Soj-­‐ex  inclusion  in  G-­‐Cloud  5,  the  latest  iteraDon  of  the  UK  Government’s  cloud  compuDng  framework  

TASK  ORDERS  RECEIVED  SINCE  Q1  2014

Task ContractAnnounced Orders Value10/8/14 New  Federal  Govt.  Agency 4 $2.79/30/14 Civil ian  Aviation  Security  &  Subcomponent 2 $87.99/18/14 U.S.  Citizenship  and  Immigration  Services 1 $23.46/4/14 Federal  Law  Enforcement  Agencies  (2) 2 $28.95/27/14 Department  of  Health  and  Human  Services 1 $47.54/21/14 Federal  Protective  Services 1 $2.3

TOTAL 11 $192.7

©  2015  WIDEPOINT  CORPORATION   10  

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2014  Evidence  of  Success  -­‐  Enterprise  

•  Developed  CerDficate-­‐on-­‐Device  &  other  credenDals  MSM  soluDons/services  •  Announced  partnerships  with  LG  and  Kyocera,  and  working  with  a  third  large  OEM  

to  embed  CerDficate-­‐on-­‐Device  security  offering  into  OEM  equipment  

•  Expanding  relaDonship  with  U.S.  and  U.K  based  Telecom  Provider  •  Enterprise  awards:  

–  Gained  a  new  European  telecom  and  railroad  client  –  Added  new  holding  company  client  with  15  diverse  subsidiaries  –  Added  approximately  11  new  Managed  Mobility  clients  in  Q3  2014;  more  than  70  in    

past  four  months—42  cybersecurity  related  –  Added  (2  new  internaDonal  clients)  Oil  Services  &  Consumer  Products  –  M2M  win  –  Defense  Electronics  Firm  

•  Expanded  significantly  the  Compass  RelaDonship  (mulD-­‐country  &  channel  opportunity)  

•  Acquired  Soj-­‐ex  for  approximately  $6  million  to  further  penetrate  Europe  and  expand  carrier  relaDonships  

©  2015  WIDEPOINT  CORPORATION   11  

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2015  Pilots  and  OpportuniDes  

•  COD  Pilots:  1  Million  –  5  Million  ($1  -­‐  $5  per  device  per  month)  –  Money  Center  Bank,  DoD  Agency,  DHS  Agency,  First  Responders,  and  

Teleworkers  IniDaDve  (w/Partners)  

•  DHS  BPA  –  three  agencies  remaining,  ICE  just  announced  to  Ramp  2015  –  (Coast  Guard,  Secret  Service,  and  FEMA  remaining  for  2015)  

•  Other  Government  OpportuniDes:  –  U.K.  Government  IniDaDve  –  United  NaDons  IniDaDve  –  NATO  IniDaDve  –  Western  States  Alliance  OpportuniDes  –  6  new  state  opportuniDes  

•  Major  Enterprise  OpportuniDes:  –  Compass  –  Next  five  countries….on  the  path  to  a  global  showcase!  –  Partners  –  Go-­‐to-­‐Market  commences  w/ATT,  BT,  handset  manufacturers,  etc.  

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Financial  Drivers  

Gross  Profit  &  Margin  

Revenue  

Strong  Growth  Outlook  

§  Revenue  growth  from  new  contract  awards,  commercial  iniDaDves  and  sales  &  markeDng  investment    

DHS  $600M  Single  Awardee  /  Channel  Partners  /    Cert-­‐on-­‐a-­‐Device    

Recurring  Revenue  Model  

§  Growing  recurring  revenue  base  to  drive  greater  visibility  and  operaDng  leverage    

High  recurring  revenue  base  /  ~75%  2013  revenue  from  customers  greater  than  5  years  

Margin  Expansion  

§  Gross  profit  expansion  with  emerging  higher  value  services  will  drive  meaningful  operaDng  leverage  Gross  margin  expansion  since  2011  

Customer  Mix  

Improving  

§  Expanding  higher  margin  commercial,  internaDonal,  state  and  local  revenue  to  augment  “Federal”  exposure  

Mul.ple  non-­‐federal  growth  opportuni.es    in  2014  and  beyond  

**Annualized  revenues  based  on  June  30,  2014  quarter  run  rate.  

©  2015  WIDEPOINT  CORPORATION   13  

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Why  WYY  and  Why  now?  

©  2015  WIDEPOINT  CORPORATION   14  

WidePoint  Has  Solu.ons  the  Market  Needs  

§  Brings  over  10  years  of  credenDaling  for  the  DoD  and  Federal  government  

§  Has  developed  a  cost-­‐effecDve,  mulD-­‐plagorm  commercial  offering  leveraging  government  experience  

§  Has  aligned  with  criDcal  partners  to  bring  soluDon  to  market  

§  SoluDon  merges  idenDty  assurance  with  device  management  –  TLM  +  cybersecurity  

§  Mobile  workforce  expanding  faster  than  any  prior  technology  cycle  

§  BYOD  is  forcing  IT  departments  to  support  all  plagorms  

§  MDM  has  failed  to  deliver  a  security-­‐first  soluDon  §  IdenDty  assurance  has  become  criDcal  to  prevent  

network  breaches  §  Technology  is  available  and  affordable  

Market  Opportunity  is  Accelera.ng