Senetas Corporation Limited · ASX:SEN

Senetas — Shareholder Meeting (November 2017)

18 slides from Senetas's shareholder meeting presentation, Nov 16, 2017

1. Slide 1: Cover letter to ASX: 2017 AGM Chairman's Address and CEO Presentation

   For personal use only 16 November 2017 The Manager, Listings ASX Limited Company Announcements Office Level 4 Exchange Centre 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam 2017 Annual General Meeting – Chairman’s Address and CEO Presentation We attach a copy of the Chairman’s address and the CEO’s

2. Slide 2: Chairman's Address

   SENETAS CORPORATION LIMITED AGM – 16 NOVEMBER 2017 Chairman’s Address For personal use only It is now 10.30am, this is a properly constituted meeting and a quorum is present. I therefore declare the Annual General Meeting of Senetas Corporation Ltd open. I would like to welcome you today and thank y

3. Slide 3: Chairman's Address (continued)

   SENETAS CORPORATION LIMITED AGM – 16 NOVEMBER 2017 our customers who have both layer 2 and layer 3 networks the ability to use our devices interoperably between both networks. We have also been working closely with an For personal use only optical networking company to imbed our technology into its

4. Slide 4: For personal use only

   SENETAS CORPORATION LIMITED AGM – 16 NOVEMBER 2017 W www.senetas.com For personal use only E info@senetas.com Francis Galbally, Chairman 3

5. Slide 5: 2017 AGM – CEO Presentation

   For personal use only 2017 AGM – CEO Presentation Andrew Wilson © 2017 Senetas Corporation Slide 1

6. Slide 6: Key Financials

   Key Financials For personal use only © 2017 Senetas Corporation Slide 2

7. Slide 7: FY17 Key Financials

   FY17 Key Financials FY17 $000’s FY16 $000’s Change For personal use only Year ended 30 June 2017 Revenue from ordinary activities 17,591 18,920 (7%) Gross profit 14,432 16,112 (10%) Other income 2,441 2,517 (3%) Profit before tax 5,264 7,022 (25%) Tax expense (2,385) (1,803) 32% Net profit after tax

8. Slide 8: Trading Revenues ($'000)

   Trading Revenues ($’000) For personal use only United States Decrease in sales revenue Other due to disruption in ordering from US enterprise Australia and New Zealand 18,920 customers Europe 17,591 EBITDA 15,907 10,950 46% maintenance revenue (up from 37% of total revenue in FY16) FY14 FY15 FY16 FY

9. Slide 9: Strong Balance Sheet & Positive Cash Flow

   Strong Balance Sheet & Positive Cash Flow For personal use only NET ASSETS $’000 CASH AND CASH EQUIVALENTS $’000 FY17 total reduced by investment in unlisted entities of 21,483 $2.2m 20,848 18,526 20,091 15,902 13,093 9,026 6,805 FY14 FY15 FY16 FY17 FY14 FY15 FY16 FY17 © 2017 Senetas Corporation Sli

10. Slide 10: Growth Opportunities

    Growth Opportunities For personal use only © 2017 Senetas Corporation Slide 6

11. Slide 11: Best-of-Breed Solutions

    Best-of-Breed Solutions For personal use only Networking Solutions Collaboration Hardware Software Secure File Encryption Encryption Sharing Current Layer 2 Virtual Encryptor SureDrop Encryption Products © 2017 Senetas Corporation Slide 7

12. Slide 12: Ultra-High-Speed 100Gbps Ethernet Encryptors

    Ultra-High-Speed 100Gbps Ethernet Encryptors For personal use only • The market for 100Gbps networks is growing and is expected to account for 50% of data centre activity by 2019 • Senetas’100Gbps encryptors support complex, ultra-fast network 1,200 topologies; enabling 100% security for Big Data, C

13. Slide 13: Custom Encryption Services & Algorithms

    Custom Encryption Services & Algorithms For personal use only • Encryption algorithm can be chosen or provided by the client • Customer testing and certification process is proceeding as expected • Initial sales are expected in the second half of FY18 © 2017 Senetas Corporation Slide 9

14. Slide 14: Software encryption – SDN Compatible

    Software encryption – SDN Compatible • Software-Defined Networking (SDN) is an emerging network For personal use only architecture that allows for programmable network logic which traditional networks do not. SDN networks are more dynamic 2020 Global dynamic, manageable, cost-effective, and adaptabl

15. Slide 15: SureDrop Acquisition

    SureDrop Acquisition For personal use only Secure file sharing and syncing solution for enterprise and government SureDrop provides all the usability, familiarity and convenience of a dropbox-type file sharing and collaboration application plus robust, state of the art security. • Expands product su

16. Slide 16: Unlisted minority investments

    Unlisted minority investments For personal use only • SAT has patented smart antenna technology which consolidates the multiple antennas found in mobile devices into a lower cost, more efficient single antenna • DeepRadiology’s scan interpretation and reporting system uses medical machine learning a

17. Slide 17: FY18 Outlook

    FY18 Outlook For personal use only • Positive outlook for earnings growth in FY18 • Key customers have resumed buying hardware encryptors with the disruption through 2017 now resolved • Strong sales pipeline for existing product and the new 100G and custom algorithm products will generate sales for

18. Slide 18: Thank You

    Thank You For personal use only © 2017 Senetas Corporation Slide 14

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