Senstar Technologies Corporation · NASDAQ:SNT
Senstar Technologies — Investor Presentation (December 2023)
27 slides from Senstar Technologies's investor presentation, December 2023
Slide 1: Senstar Technologies, Ltd.
Senstar Technologies, Ltd. Safeguarding people, places and property. Fabien Haubert, Interim CEO Tomer Hay, CFO December 2023
Slide 2: Safe Harbor
Safe Harbor The information contained in this presentation does not purport to be all inclusive or to contain all information that prospective investors may require. Prospective investors are encouraged to conduct their own analysis and review of information contained in this presentation as well as
Slide 3: Senstar Technologies Overview
Senstar Technologies Overview Senstar leverages brand leadership in innovative Perimeter Intrusion Detection Systems (PIDS) with intelligent Security Management System (SMS) featuring advanced video analytics and access control integrated into one solution for security and operational intelligence •
Slide 4: Global Reach, Local Support
Global Reach, Local Support Manufacturing: Sweden Ottawa, Canada UK Poland Development centers: Canada Germany China Ottawa and Waterloo, Canada USA Netherlands Romania France 150+ employees worldwide: Iberia Malaysia Mexico ~25% in R&D – engineering and Philippines software developers Brazil Singap
Slide 5: Our Growth Platform
Our Growth Platform Senstar Technologies Ltd. is a growth platform focused on tech-rich products and solutions for security and operational intelligence. Its high-margin solutions division, Senstar Group, enjoys brand leadership with disruptive PIDS and intelligent SMS. With no debt and a strong cas
Slide 6: Established Leadership Team Brings Performance Track Record
Established Leadership Team Brings Performance Track Record Senstar Technologies Ltd. Leadership team’s focus on product innovation getting recognition from leading security industry publications and associations Fabien Haubert Tomer Hay Interim CEO CFO 2022 Senstar Corporation Fabien Haubert Alicia
Slide 7: Serving Key Vertical Markets
Serving Key Vertical Markets Four Focus Verticals Senstar’s solutions address each vertical’s unique requirements Focus Vertical Features ENERGY CORRECTIONS UTILITIES LOGISTICS • Growing need for sophisticated solutions Additional Targeted Verticals • Leveraging product and project core capabilities
Slide 8: Core Market – Intelligent Perimeter Intrusion Protection
Core Market – Intelligent Perimeter Intrusion Protection Protecting Critical Infrastructure While Meeting Operational and Regulatory Requirements Electronic Security Access Control Management EAC Senstar Symphony Fence Mounted Sensor FlexZone / FiberPatrol Buried Sensor OmniTrax VMS Video Analytics
Slide 9: Safeguarding People, Places and Property
Safeguarding People, Places and Property Senstar has been protecting high-risk assets for over 40 years in thousands of logistics, critical infrastructure, corrections, and energy facilities around the world. 40+ years experience 50,000+ km of installed sensors Installed together, Senstar products c
Slide 10: Senstar's Commitment to Innovation
Senstar’s Commitment to Innovation • Significant investment of ~$15.0M in advanced research and development in past four years – Next-generation sensors – AI and deep-learning solutions • Range of product offerings unmatched in the industry • World’s most extensive outdoor security test facility wit
Slide 11: PIDS – Perimeter Intrusion Detection Systems
PIDS – Perimeter Intrusion Detection Systems • Perimeter protection is the first line of defense in physical security • Inexpensive, rapid to install, highly configurable PIDS detection • Combined these physical barriers with other security controls create an effective, integrated security solution
Slide 12: Introducing Revolutionary Intrusion Detection: Senstar MultiSensor
Introducing Revolutionary Intrusion Detection: Senstar MultiSensor™ Disruptive Innovation • Probability of Detection (Pd) vastly exceeds traditional sensors, eliminating ~100% of nuisance alarms • Full situational awareness • AI-based intrusion detection system with embedded sensor fusion engine • M
Slide 13: Senstar Symphony Common Operating Platform
Senstar Symphony Common Operating Platform • Innovative, intelligent open platform for video, security management and access control • Strong portfolio of analytics applications and business intelligence reports • Full-featured integrated alarm management and access control modules • Version 8 featu
Slide 14: Competitive Advantage
Competitive Advantage • Fusion of “Big Data” is the new paradigm between the three primary domains to drive Access Control performance and efficiency Intrusion $7.8B • Typically, competitors are present in only one or two of the domains Detection • Senstar has the distinct advantage of being the $60
Slide 15: Growth Drivers
Growth Drivers Targeting Four Key Areas For Growth To Grow At Or Above Market Rates Increasing sales from Delivering new FOUR KEY VERTICALS PRODUCTS, SOFTWARE & SOLUTIONS Establishing Reaching NEW DISTRIBUTION HIGH VOLUME MARKETS channels 15
Slide 16: Focus on Four Key Verticals
Focus on Four Key Verticals • Opportunity to increase market share in four large verticals by leveraging established brand and distribution and selling product solutions for adjacent applications beside security • Enhance customers’ installed surveillance systems to provide new operational intellige
Slide 17: Developing Sales & Partnerships
Developing Sales & Partnerships Key Partners • Improving sales efficiencies ` • 50% of Senstar employees are customer facing • Expanded Senstar’s in-house direct sales team • Increasing ticket-size with bundled product solutions designed to work together • Leveraging global systems integrators • Wor
Slide 18: Ongoing Software Innovation Drives Deeper Integration
Ongoing Software Innovation Drives Deeper Integration Intelligent video management – open platform, Sensor fusion – next-generation systems scalable common operating platform process data via fusion engine Advanced, AI-powered analytics Artificial intelligence, pattern recognition, multi-sensory app
Slide 19: Mid-term Business Model: Targeting Solid Financial Results
Mid-term Business Model: Targeting Solid Financial Results Low Cap-Ex requirements and positive cash flow enable organic growth at or above market rates, attractive margins and can address larger volume markets Above Above High 10% 60% Teens1 Annual Organic Gross EBITDA Growth Margin Margin Positive
Slide 20: Capital Allocation Priorities Fuel Growth
Capital Allocation Priorities Fuel Growth Tech Focus Drives Growth Ongoing R&D investment Total R&D & • Our biggest growth driver Technicians Employees 150+ • Enhancing existing platform to add capabilities • Continuously developing new technology ~10% of revenues spent on R&D1 1 Over past three yea
Slide 21: Key Takeaways
Key Takeaways • Attractive balance sheet with no debt and cash to fund growth • Senstar structure optimizes its ability to scale ✓ Differentiated technology offers competitive advantages ✓ Disruptive solutions based on over 40 years' experience in the market ✓ Positioned for top line growth ✓ Highly
Slide 22: Appendix
S=NSTAR TECHNOLOGIES LTD™ Appendix
Slide 23: Consolidated Statements of Operations
CONSOLIDATED STATEMENTS OF OPERATIONS U.S. dollars in thousands (except per share data) Three Months Nine Months Ended September 30, Ended September 30, 2023 2022 % change 2023 2022 % change Revenue 8,969 9,739 (8) 23,855 25,648 (7) Cost of revenue 3,898 3,789 3 10,067 9,756 3 Gross profit 5,071 5,9
Slide 24: Reconciliation of EBITDA from Continuing Operation to Income (Loss)
RECONCILIATION OF EBITDA FROM CONTINUING OPERATION TO INCOME (LOSS) FROM CONTINUING OPERATION U.S. dollars in thousands Three Months Nine Months Ended September 30, Ended September 30, 2023 2022 2023 2022 GAAP income (loss) from continuing operations (122) 1,247 (1,722) 578 Less: Financial income (e
Slide 25: Consolidated Balance Sheets
CONSOLIDATED BALANCE SHEETS U.S. dollars in thousands SENSTAR TECHNOLOGIES UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (All numbers expressed in thousands of US$) September 30, December 31, 2023 2022 CURRENT ASSETS: Cash and cash equivalents $12,600 $14,937 Short-term bank deposits 110 110 Restr
Slide 26: Consolidated Balance Sheets
CONSOLIDATED BALANCE SHEETS U.S. dollars in thousands (except per share data) SENSTAR TECHNOLOGIES UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (All numbers expressed in thousands of US$) September 30, December 31, 2023 2022 CURRENT LIABILITIES: Trade payables $973 $2,408 Customer advances 251 23
Slide 27: Thank You
Thank You Investor Relations Kim Rogers Hayden IR kim@haydenir.com
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