Slide 1: Revolutionizing Consumer Cybersecurity
allot PS er Revolutionizing rh ie y, Consumer si Cybersecurity uN Aug. 2021 reedndt try . & eh. i a pat ? ae i Z ~ 2
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements, which express the current beliefs and expectations of Company management. Such statements involve a number of known and unknown risks and uncertainties that could cause our future results, performance or achievements t
Slide 3: Allot Overview
Allot Overview MARKET CUSTOMER BASE COMPANY HIGHLIGHTS PROVEN MANAGEMENT TEAM Communication Service Providers (CSPs) Hundreds of CSPs globally * Tier-1 operators * ALLT (NASDAQ, TASE) * 2020 revenue: $136M * 2020 Cybersecurity revenues: $23M * 2017-2020 revenue growth CAGR: 18% Decades of experience
Slide 4: Allot Smart Technology Heritage
MASMovIL’ idea | /e ) 2 vio) = pccw | PA TELMEX. 6) OPTUS Safaricom nr Claro* ph StarHub SES “3° Telefonica > [era ATM allot Smart Making your network smart 2 bouygues Allot Smart Technology Heritage e Deployed with hundreds of CSPs worldwide e Telco grade solutions e High throughput e Multitenancy
Slide 5: Global CSP customers: Tier-1 operators trust Allot
‘I ies=c ure CSP@iietamens More than 20 million global subscribers protected Tier-1 operators trust Allot allot 5
Slide 6: The Consumer & SMB Cybersecurity Challenge
The Consumer & SMB Cybersecurity Challenge
Slide 7: Adware Phishing
• • • 120,000,000 100,000,000 80,000,000 60,000,000 40,000,000 20,000,000 - Jan Feb Mar Apr May Jun Jul Aug Spt Oct Adware Phishing 7
Slide 8: Security Apps Don't Protect Consumers
Security Apps Don't M Protect Consumers ; ; . Consumers & SMBs cannot be their own CISO Consumers don't Few* consumers want to implement actually download security apps on all security apps their devices Despite this, many CSPs today are reselling endpoint Apps with limited success * Based on conver
Slide 9: The Opportunity
allot The Opportunity
Slide 10: Consumers & SMBs are Aware of Threats and Expect CSPs to Provide Solution
Consumers & SMBs are Aware of Threats and Expect CSPs to Provide Solution 72% of US consumers worry about personal or financial data being hacked allot 66. of US consumers worry about being a victim of identity theft participants in October 2020 10 Yes, one-off fee 9 '@) oO, % of consumers think the
Slide 11: US Consumers are Willing to Pay to be Protected
US Consumers are Willing to Pay to be Protected allot MOBILE USERS 68% are wiling to pay $3* per month for security *Average price willing to be paid by uses. Based on survey of 2,500 American participants in April 2021 Survey on US Mobile and Broadband Security, conducted by Coleman Parkes Research
Slide 12: CSPs Well Positioned to Provide Security Services
CSPs Well Positioned to Provide Security Services allot Sole provider of access to the network. Capable of blocking attacks before they reach the customer 12 Multiple touch points with customers: trusted brand, billing, frequent interactions
Slide 13: Network-Based Cybersecurity is the Next Big Thing for CSPs
Network-Based Cybersecurity is the “Next Big Thing” for CSPs lue #1 Value #2 Value #3 ° ° rand New Customer loyalty recognition revenues helps reduce churn* * Based on conversations with CSPs allot 13
Slide 14: CSPs will be Consumer & SMB Cybersecurity Heroes
CSPs will be Consumer & SMB Cybersecurity Heroes allot “4
Slide 15: Allot Revolutionizing Consumer & SMB Cybersecurity
allot Allot Revolutionizing *) Consumer & SMB Cybersecurity 7
Slide 16: The Allot Secure Solution
The Allot Secure Solution \ot allot 16 © 10)
Slide 17: NetworkSecure: Allot Secure
allot NetworkSecure Allot Secure Protecting consumers from threats/crime on the network 560° Security * Any threat » Anywhere * Any device BusinessSecure 17
Slide 18: Allot Secure: Full Unified Security Blanket
Allot Secure 360 The only company to offer a full unified “security blanket’ allot Allot Cloud + Threat Intelligence + Web Categorization + Device Fingerprinting I] Allot Secure Management + One seamless security experience + Subscriber Oriented | || 7 2 @ fn? = ai HomesSecure — BusinessSecure loTSe
Slide 19: The Economics
The Economics allot
Slide 20: Multi-Billion Dollar Addressable Market
Multi-Billion Dollar Addressable Market * Source: OECD Trends in Telecommunications Revenue and Investment, April 2020 ** Allot estimations *** Some numbers have been rounded off allot 20 ORO)
Slide 21: Consumers willing to pay 5% to 8% of price plan for Cybersecurity
Consumers willing to pay 5% to 8% of price plan for Cybersecurity allot ( ») 0.99€/m ~5% of average price plan “Vodafone Secure Net is a unique service that protects you simply and safely on your Vodafone connected devices.” 1.5€/m ~8% of average price plan “The Drei Internet Protection protects Dre
Slide 22: Penetration rates of CSP security services
70% 60% 35% 33% 34% 50% 31% 31% 30% 27% 40% 25% 21% 30% 17% 15% 20% 10% 7% 10% 5% 4% 1% 0% 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 22
Slide 23: Allot CSP Value Proposition
Provide all required to CSP (hardware, software, professional services, marketing support and support & maintenance) 0 upfront charge Allot CSP Value osition 0 financial commitment Revenue share Some operators are willing to share up to 50% of security revenues with Allot. 23 EEA)
Slide 24: CSP executive testimonials
9 allot We are facing attach rates of up to 80% of new customers. Martin Westhoff Strategy and Marketing Home at Hutchison Drei Osterreich 3 We see the huge potential of Telefonica to achieve very high penetration rates with this type of service. Jose Luis Gilperez Executive Director Public Administ
Slide 25: Positioned For Growth
Positioned For Growth allot
Slide 26: 5G Networks Are More Vulnerable to Attacks
allot 5G Networks Are More Vulnerable to Attacks High Many Internet Bandwidth connections Many loT devices 5G NetProtect Protecting Service Provider User Plane from malicious and abnormal network activities 26
Slide 27: allot
27 allot
Slide 28: This is Just the Beginning... The Future is Bright
This is Just the Beginning... The Future is Bright. Allot is placed in a strategic location within the network and sees all the traffic. Future Values: Enhanced Consumer Data Driven Privacy Security allot
Slide 29: Growth Vectors to the Future
allot 4 Growth Vectors to the Future Increase # of CSPs Increase # of Increase the value Protect the 5G network that launch consumer consumers & SMBs that we give (protection, (starting with Dish...) & SMB security subscribe to the service privacy, etc.) 29 DEVO
Slide 30: Allot Transformation Journey
Allot Transformation a Journey & 2020-21 Initial SECaaS Revenues 2022+ Increase SECaaS Revenues 2019 Up to Signing Security 20 1 8 Rev-Share Deals Mainly DPI CAPEX Deals allot 30 ®G=0
Slide 31: Seizing the Opportunity
Threats to consumers & SMBs are growing Consumers & SMBs are vulnerable, existing solutions are not enough Seizing the Opportunity Customers are aware, look to CSPs for solutions and are willing to pay for them Allot is revolutionizing consumer cybersecurity with a network-based security service off
Slide 32: Financial Overview
Financial Overview
Slide 33: Attractive and healthy financial profile
Attractive and healthy financial profile... $140m 18: 71x $106m LTM Revenue Scale FY2017-FY2020 Non-GAAP Cash and Revenue CAGR FY2020 Gross Margin investments* As of June 30, 2021 Security driving the next phase of growth... More than 50x More than 550m Security Revenue Contribution Recurring Revenu
Slide 34: Revenue ($M), Gross Margin
Revenue ($M), Gross Margin* Ql mQ2 Q3 9) a4 35 31 55 31 27 28 24 a 22 2018 2019 2020 2021 2018 34 uidance: 145-150
Slide 35: Transition to Security
allot Transition to Security (% of total company revenues) ™ DPI M@ Security Medium Term Target 35 QD=zy
Slide 36: Hypothetical CSP Example - SafeTelCo
Hypothetical CSP Example - SafeTelCo Assumptions * 5M mobile subs * $20/month ARPU SECaas& Pricing: + $1/month for security (5%) MAR Calculation*: * Allot rev-share 33% + MAR** = S20M (5M*S$4) ($1*12*33%=$4/sub/year) Maximum Penetration: 25%, 3 years after launch *Assuming a consumer base of 5 milli
Slide 37: SECaaS Revenues
SECaaS Revenues allot 37
Slide 38: Improving Revenue Visibility
Improving Revenue Visibility | ee 7 Short term @Suppol maintenance target More than $33M $34M $32M $60m in recurring revenue 2018 2019 2020 2021 TARGET 2022 TARGET allot 38 ORO)
Slide 39: 2021 Guidance
2020 2021 Guidance 136 145 - 150 71% 70% 100 110-111 (3) (6-8) 192 >180 Non-GAAP *MAR (maximum annual revenue potential of concluded transactions) was estimated by Allot upon transaction signature and constitutes an approximation of the theoretical annual revenues Allot would receive if 100% of the
Slide 40: Thank You!