©  2015  WIDEPOINT  CORPORATION.  ALL  RIGHTS  RESERVED.  

May  2015  

WidePoint  CorporaCon  Investor  PresentaCon  

B.  Riley  &  Co.  Investor  Conference  

NYSEMKT:  WYY  

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  

•  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  penetraCon  both  domesCcally  and  internaConally  

Company  Overview  ProtecCng  and  managing  the  integrity  of  communicaCons  for  organizaCons  with  elegant,  easy  to  use,  and  cost  effecCve  soluCons    

Managed  Mobility  Services  

Telecom  Lifecycle    Management  

Cybersecurity    SoluCons    

SoluCon    Partners  

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

ongoing  challenges  of  acceleraCng  technology,  cyber  threats,  and  evolving  

customer  requirements  

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

Digital  cerCficates,  credenCals,  idenCty  management,  informaCon  assurance;  our  experCse  in  federated,  compliant  cybersecurity  is  applied  to  mobile  security  

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

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Analyst  expecta-ons  of    $70M  -­‐  $80M  for  2015  

IdenCty  Assurance  &  Device  Management  Converging  

§  EVERY  organizaCon  –  enterprise  or  government  –  must  idenCfy  who  is  accessing  their  network  

§  43%  of  companies  had  a  data  breach  in  the  past  year  

§  TradiConal  approach  of  passwords  and  secureID  cards  is  outdated  and  has  shown  itself  to  be  be  highly  vulnerable  to  unauthorized  access  –  3,000  KNOWN  Fortune  100  network  breaches  in  2014    

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

§  A  new  approach  is  needed,  and  the  Market  need  is  accelera-ng  

WYY  SoluCon  

§  Secure  idenCty  assurance  and  device  management  to  the  new  mobile  workforce  ―  Cost-­‐effecCve,  fully-­‐scalable,  mulC-­‐  

plahorm  

―  Proven  cloud-­‐based  soluCon  

§  First  to  market  with  Mobile  Security-­‐first  offering  

§  Only  provider  of  federated  idenCty  assurance  and  device  management  across  mulCple  hardware  and  O/Ss  

§  Combine  experCse  in  credenCaling  and  TLM,  both  with  more  than  10+  years  experience  

Problem  

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

IdenCty  &  Access  Management  

Source:  TechCrunch  arCcle,  “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  IdenCty  security  is  expected  to  grow  over  7x  by  2017  

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

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Cloud-­‐Based  IdenCty  Assurance  

Iden-ty  Assurance  in  the  cloud  

§  Uniform  –  fully  federated  soluCon  

§  MulC-­‐plahorm  –  BYOD,  mulCple  O/S  

§  Scalable  (sokware,  MicroSD,  hardware  embedded)  

Windows  Phone  

iOS  

Android  

BlackBerry  

PC  Notebook  

Cloud  

Windows  To  Go  

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WidePoint’s  proven  experCse  in  mobility  and  security  soluCons  uniquely  posiCons  it  to  address  a  wide  range  of  opportuniCes  

CompeCCve  Landscape  

Compe-tors  

TLM   MDM   IAM   EMM  

Expense  and  Lifecycle  Management  

Iden-ty    Assurance  

Commercial  Focus  (Enterprise  Mobility)  

Cross  PlaSorm  /  Federated  Model  

Segment  offers  this  capability   Segment  DOES  NOT  offer  this  capability  

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IdenCty  Assurance  Go-­‐to-­‐Market  

3,000  Key  Market  Drivers  

Corporate  Websites  Hacked  in  2013  3,000+  

Device  Addressable  Market  100M+  

$1  -­‐  $5   per  CerCficate  per  Month  

Expected  penetraCon  for  amribute-­‐based  security(1)  

Current  penetraCon  for  amribute-­‐based  security(1)  

70%  

5%  

WidePoint  Partners  

Handset   Security   Enterprise  

Enterprise  SoluCon  

First  Responders  

Hardware  Security  Modules  

Windows  To  Go®  

Biometrics  

Hardware  Security  Modules  

TPM  

Cer-ficate-­‐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  protecCng  criCcal  assets.    Gartner  esCmates  only  5%  of  enterprises  currently  use  amribute-­‐based  access  control.  

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

Major  OEMs  Named  •  Kyocera  –  targeCng  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  •  Samsung  –  integrated  into  Knox  product  suite,  working  to  complete  the  integraCon  of  

CerCficate-­‐on-­‐Device.  Will  begin  co-­‐markeCng  in  May  2015  •  Windows  To  Go/SPYRUS  –  Forecast  to  >  10s  of  millions  of  users  (10%  secured  marketplace)  •  Trusted  PlaSorm  Module  (TPM)  –  Windows  PCs,  Tablets  &  Phones  

–  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  

–  large  financial  services  client  to  provide  idenCty  assurance  consulCng  services  in  connecCon  with  next-­‐generaCon  idenCty  management  offerings  

•  BT  Global  –  BT  Global  (US-­‐based)  is  responsible  for  bringing  security  soluCons  to  BT’s  top  250+  clients,  with  more  than  50%  global  

enterprises.  BT  services  more  than  4  million  clients    

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Evidence  of  Success  –  Government  

•  Awarded  task  orders  with  contract  value  in  excess  of  $300  million  on  sole  awardee  $600  million  DHS  BPA  -­‐  3  Major  Agencies  Remaining  

•  U.S.  Army  Corps  of  Engineers;  2  Agencies  under  the  Department  of  JusCce;  and  3  Agencies  within  the  Department  of  Health  and  Human  Services  (HHS)  

•  Subsidiary  Sok-­‐ex  CommunicaCons  inclusion  for  provisioning  of  Specialist  Cloud  Services  in  the  latest  G-­‐Cloud  6  procurement  agreement  of  the  UK  Government    

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Evidence  of  Success  -­‐  Enterprise  

•  Developed  CerCficate-­‐on-­‐Device  &  other  credenCals  MSM  soluCons/services  

•  Announced  partnerships  with  LG  and  Kyocera,  and  working  with  Samsung  to  embed  CerCficate-­‐on-­‐Device  security  offering  into  OEM  equipment  

•  Expanding  relaConship  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  4  months  –  42  cybersecurity  related  –  Added  (2  new  internaConal  clients)  Oil  Services  &  Consumer  Products  –  M2M  win  –  Defense  Electronics  Firm  

•  Expanded  significantly  the  Compass  RelaConship  –  (MulC  Country  &  Channel  Opportunity)  

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2015  Pilots  and  OpportuniCes  

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

IniCaCve  (w/Partners)  

•  DHS  BPA  –  3  Agencies  remaining  for  2015  -­‐  Coast  Guard,  Secret  Service,  and  FEMA  

•  Other  Gov’t  OpportuniCes:  –  U.K.  Government  IniCaCve  –  United  NaCons  IniCaCve  –  NATO  IniCaCve  –  Western  States  Alliance  OpportuniCes  –  6  new  state  opportuniCes.  

•  Major  Enterprise  OpportuniCes:  –  Compass  –  Next  5  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  

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Gross  Profit  &  Margin  

Revenue  

Strong  Growth  Outlook  

§  Revenue  growth  from  new  contract  awards,  commercial  iniCaCves  and  sales  &  markeCng  investment    

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

Recurring  Revenue  Model  

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

High  recurring  revenue  base  /  ~75%  2014  revenue  from  customers  greater  than  5  years  

Margin  Expansion  

§  Gross  profit  expansion  with  emerging  higher  value  services  will  drive  meaningful  operaCng  leverage  Focus  on  higher  margin  services  

Customer  Mix  

Improving  

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

Mul-ple  non-­‐federal  growth  opportuni-es    in  2015  and  beyond  

$9.6  

$12.4  

$14.6  

$16.8  $17.7  

 $-­‐

 $2.0

 $4.0

 $6.0

 $8.0

 $10.0

 $12.0

 $14.0

 $16.0

 $18.0

 $20.0

Q1  2014 Q2  2014 Q3  2014 Q4  2014 Q1  2015

Millions

Why  WYY  and  Why  now?  

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WidePoint  Has  Solu-ons  the  Market  Needs  

§  Brings  more  than  10  years  of  credenCaling  for  the  DoD  and  Federal  government  

§  Has  developed  a  cost-­‐effecCve,  mulC-­‐plahorm  commercial  offering  leveraging  government  experience  

§  Has  aligned  with  criCcal  partners  to  bring  soluCon  to  market  

§  SoluCon  merges  idenCty  assurance  with  device  management  –  TLM  +  cybersecurity  

§  Mobile  workforce  expanding  faster  than  any  prior  technology  cycle  

§  BYOD  is  forcing  IT  departments  to  support  all  plahorms  

§  MDM  has  failed  to  deliver  a  security-­‐first  soluCon  §  IdenCty  assurance  has  become  criCcal  to  prevent  

network  breaches  §  Technology  is  available  and  affordable  

Market  Opportunity  is  Accelera-ng