Senetas Corporation Limited · ASX:SEN
Senetas — H1 FY2015 Earnings Presentation
30 slides from Senetas's earnings presentation, Feb 25, 2015
Slide 1: Senetas Corporation Limited 2015 Interim Results
For personal use only SENETAS CORPORATION LIMITED 2015 INTERIM RESULTS 25 February 2015
Slide 2: Agenda
AGENDA For personal use only q 1H15 – a pivotal six months q Strong growth across all key financial metrics q Leveraging foundations now in place to drive continued growth 2
Slide 3: 1H15 – a pivotal six months
For personal use only 1H15 – a pivotal six months 3
Slide 4: H1 FY15 Highlights
H1 FY15 HIGHLIGHTS For personal use only Profitable – Net profit before tax up over 9x to $2.82m for 1H2015 – Operating revenue increased 68% to $8.12m Sustainable – Consolidation of master distributor relationship with SafeNet – Ongoing development of Senetas’s proprietary R&D and certified encrypt
Slide 5: Strong growth across all key financial metrics
For personal use only Strong growth across all key financial metrics 5
Slide 6: HY15 Financial Overview
HY15 FINANCIAL OVERVIEW For personal use only 1H2015 1H2014 Change $000’s $000’s 1H14 v 1H15 Revenue from ordinary activities 8,119 4,828 68% ↑ Profit from ordinary activities before tax 2,820 306 9x ↑ Net profit after tax 1,944 441 4x ↑ q Benefits from restructured business: – Non-core business un
Slide 7: Sustainable Growth
SUSTAINABLE GROWTH For personal use only TRADING REVENUE NPAT BEFORE ABNORMALS half yearly, $'000 half yearly, $'000 8,119 2,516 1,944 6,210 4,828 717 441 4,461 3,223 (1,593) Dec 12 Jun 13 Dec 13 Jun 14 Dec 14 Dec 12 Jun 13 Dec 13 Jun 14 Dec 14 q Revenues growing – Building sustainable growth in re
Slide 8: Returns on Investment
RETURNS ON INVESTMENT For personal use only NET ASSETS RETURN ON Equity half yearly, $'000 half yearly 10,978 32% 19% 13% 7% 6,210 4,828 4,461 3,223 (27%) Dec 12 Jun 13 Dec 13 Jun 14 Dec 14 Dec 12 Jun 13 Dec 13 Jun 14 Dec 14 q Improved profitability driving growth in shareholder equity – Net assets
Slide 9: Strong Operating Cash Flows
STRONG OPERATING CASH FLOWS For personal use only 1H2015 1H2014 Change $000’s $000’s 1H14 v 1H15 Operating cash flows 3,573 914 4x ↑ R&D tax concession 1,447 1,359 6% ↑ Investing cash flows (363) (60) 6x ↓ q Operating cash flows growing and positive – Continued discipline with costs while growing c
Slide 10: Balance Sheet Supports Growth
BALANCE SHEET SUPPORTS GROWTH For personal use only 1H2015 1H2014 Change $000’s $000’s 1H14 v 1H15 Cash and cash equivalents 10,096 6,805 48% ↑ Trade and other receivables 4,409 5,483 20% ↓ Total Liabilities (6,037) (6,144) 2% ↑ q Cash position of $10.00m, (24/02 at $12m) – Provides corporate flexi
Slide 11: Leveraging foundations now in place to drive continued growth
For personal use only Leveraging foundations now in place to drive continued growth 11
Slide 12: 1H2015 Operational Overview
1H2015 OPERATIONAL OVERVIEW For personal use only Sales of encryptors remain the key revenue driver – 68% of revenue in 1H2015 – Maintenance fees are an important growing and stable source of revenue Sales Channels – SafeNet is master distributer for all countries outside Australia & NZ – Domestical
Slide 13: 1H2015 Operational Overview
1H2015 OPERATIONAL OVERVIEW For personal use only Continuing focus on product certifications – NATO information security product certification received in October 2014 Research and development – Specific Market and Custom Algorithm encryptors – 100Gbps development well advanced – CN6140 multi-port e
Slide 14: The SafeNet Relationship
THE SAFENET RELATIONSHIP For personal use only SafeNet is a key strategic partner – This relationship remains strong and mutually beneficial – Contract automatically renews annually – During the half Sentas conducted training in product capabilities and selling points with SafeNet staff Benefits Fro
Slide 15: Secure Market Position
SECURE MARKET POSITION For personal use only Unique technology – Global leader in certified high speed network encryption technology – World leading proprietary R&D and product engineering capabilities – New products targeted to meet customers changing requirements – Sophisticated, high speed, scala
Slide 16: Key Growth Drivers
5 KEY GROWTH DRIVERS For personal use only 1. Accelerate growth in key high speed encryptor (HSE) markets in partnership with Gemalto / SafeNet to leverage their increased sales and marketing footprint 2. Develop new opportunities in low HSE penetration markets such as India, Japan, Singapore, South
Slide 17: Summary and Outlook
SUMMARY AND OUTLOOK For personal use only q Strong results reflect the successful implementation of the company’s plan for growth since its restructure in 2012 q Strong cash flow with positive trend established q Delivering growth with strong balance sheet to support further growth initiatives q
Slide 18: Appendices
For personal use only 18 APPENDICES
Slide 19: About Senetas
ABOUT SENETAS For personal use only q Developer and manufacturer of multi-certified high-speed network data encryption hardware q Developing encryptors since 1997 q Senetas encryptors: – only products of their type certified by all four leading international certification authorities – designed,
Slide 20: Advantages
ADVANTAGES UNIQUE ADVANTAGES OF SENETAS’ HIGH-SPEED ENCRYPTORS For personal use only THE HIGHEST PERFORMANCE AND LOWEST LATENCY • Market-leading performance capabilities “designed-in” platform. • Near-zero latency - high-performance, Flexibility - on-going operational simplicity, such as in-field up
Slide 21: Customers in Countries
CUSTOMERS IN 29 COUNTRIES GOVERNMENT, DEFENCE AND COMMERCIAL CUSTOMERS For personal use only 21
Slide 22: Engineering Capability
ENGINEERING CAPABILITY 19 FULL‐TIME ENGINEERS WITH SKILLSET INCLUDING BROAD HARDWARE AND SOFTWARE DEVELOPMENT EXPERTISE PLUS FULL PRODUCT LIFECYCLE CAPABILITY For personal use only ELECTRONIC HARDWARE DEVELOPMENT NETWORK COMMUNICATIONS • High speed electronic circuit design,Multi‐layer • Broad exper
Slide 23: CN8000 Blade Encryptor Launched
CN8000 BLADE ENCRYPTOR LAUNCHED For personal use only q Solution benefits – Flexibility & extensibility for network growth – Multiple protocol support in one encryptor – Agnostic to network q Chassis with 10 encryption card slots to equipment support multiple protocols: q Aggregate throughput – –
Slide 24: Senetas Encryption Product Family
SENETAS ENCRYPTION PRODUCT FAMILY CN4010 CN6010 CN6040 CN6100 For personal use only • Compact desktop • 1U rack mount • 1U rack mount • 1U rack mount enclosure enclosure enclosure enclosure • 10Mbps-1Gbps • 100Mbps-1Gbps • User selectable: • 10Gbps Ethernet Ethernet 100/1000Mbps • Scalable licensing
Slide 25: Layer Network Encryption Products
LAYER 2 NETWORK ENCRYPTION PRODUCTS THE OSI (OPEN SYSTEMS INTERCONNECTION) For personal use only Layer 7 – Application • Consists of the user-level programs and network services (telnet, ftp, and tftp) • Performs the translation between the data representation local to the Layer 6 – Presentation com
Slide 26: Senetas' Layer Encryption
SENETAS’ LAYER 2 ENCRYPTION ENABLES HIGH SPEED, SCALABLE, SECURE DATA TRANSFER WITH NEAR For personal use only ZERO LATENCY • Network topologies are evolving and the use of Layer 2 is becoming increasingly popular. Lowest impact on network • Layer 2 encryption is often referred to as a performance “
Slide 27: Certifications
CERTIFICATIONS All four leading certifications across Senetas encryption products. Government and Defence – only company in the world with all four certifications For personal use only § Certification received § First certification § Certification § Certification in March 2012 received in Nov re
Slide 28: Networks
NETWORKS Senetas encryptors are made to suit a wide variety of modern networks For personal use only Cloud Security DCI / Disaster Multicast Recovery Networking Carrier Ethernet Network Ethernet Remote Connections Connections 28
Slide 29: Senetas Management Team
SENETAS MANAGEMENT TEAM For personal use only CEO CTO GM Engineering GM Europe GM Marketing Andrew Julian John Gareth Simon Wilson Fay Weston Jones Galbally Chief Technical Officer General Manager of General Manager of Head of Marketing and CEO Engineering Senetas Europe Channel (since Aug 2012) Hea
Slide 30: Disclaimer
DISCLAIMER For personal use only THIS PRESENTATION ("PRESENTATION") HAS BEEN PREPARED BY SENETAS CORPORATION LIMITED (“SENETAS“ OR “THE COMPANY”) FOR THE SOLE PURPOSE OF PROVIDING GENERAL AND BACKGROUND INFORMATION ON THE COMPANY. NOTHING CONTAINED IN THIS PRESENTATION IS OR SHOULD BE RELIED UPON AS