Slide 1: FirstWave Cloud Technology Capital Raise
FirstWave Cloud Technology Capital Raise May 2020 A global cyber security company 1
Slide 2: Contents
Contents A global cyber security company Offer Summary Recap Market Update Forward Plan Use of Funds Offer Timetable Appendix 1 - Calculations Appendix 2 – Risks and Restrictions 2
Slide 3: Disclaimer
Disclaimer This presentation has been prepared by FirstWave Cloud Technology Limited (FCT) in connection with an accelerated non-renounceable pro rata entitlement offer of new fully paid ordinary shares (New Shares) to be made under section 708AA of the Corporations Act 2001 (Cth) (Corporations Act)
Slide 4: Disclaimer cont’d
Disclaimer cont’d Financial data All amounts are in Australian Dollars ($ or AUD) unless otherwise indicated. A number of figures, amounts, percentages, estimates, calculations of value and fractions in this presentation are subject to the effect of rounding. Accordingly, the actual calculation of t
Slide 5: Offer Summary
FirstWave A global cyber security company Offer Summary 5
Slide 6: Offer Summary
Offer Summary ˃ Capital of $14.9m is to be raised under the offer via: ˃ Placement of approximately 79m shares (representing approximately 25% of issued capital) to institutional and sophisticated investors to raise approximately $3.5m (“Placement”) in accordance with Class Waiver Decision – Tempora
Slide 7: Offer Summary
Offer Summary ˃ The Executive Chairman, John Grant, proposes to accept his entitlement in full and participate as a priority sub-underwriter to the Retail Entitlement Offer up to $300k. No fees, commissions or other consideration will be payable to Mr Grant in connection with his role as a sub-under
Slide 8: Post Offer Proforma Capital Structure
Post Offer Proforma Capital Structure As at Post Offer Proforma 31 March 2020 $14.9m Raise $19.6 Cash ($m)1 $5.8 $56.6 Issued Capital ($m)1 $42.8 Shares on Issue (m) 316.0 647.6 Options on Issue (m)2 36.1 66.1 1Net of fundraising fees 2The existing options have been issued to employees, management a
Slide 9: Recap Market Update
FirstWave A global cyber security company Recap Market Update 9
Slide 10: Where we are today
Where we are today The lead indicators project a path to significant revenue TARGET REVENUE PRODUCT TOTAL ACTIVE BILLING GLOBAL MARKET LINE LINE OF PARTNERS PIPELINE** PARTNERS PLATFORMS SIZE OF SIGHT* SIGHT* $1.88b $60m 3.3m 130 55 26 11 ARR EMAIL SEATS AND…the world has changed forever… Note: * Li
Slide 11: The world has changed forever
The world has changed forever Work from Digitisation Cyber crime home accelerates escalates becomes the new normal 11
Slide 12: Forward Plan
FirstWave A global cyber security company Forward Plan Note: This plan should be considered in conjunction with the Disclaimers and Risks which are outlined in slides 3,4, 31 - 36 12
Slide 13: The Forward Plan in summary projects…
The Forward Plan in summary projects…. REVENUE TARGET PRODUCT MORE MORE MORE MORE LINE MARKET GROWTH PARTNERS ACTIVE BILLING GLOBAL OF SIGHT GROWTH PIPELINE PARTNERS PLATFORMS GROWTH ~$2.2b ~$100m ~3.5m+ ~150 ~65 ~60 ~15 ARR EMAIL SEATS FY22 IN YEAR PROJECTED REVENUE OF $26m FY22 PROJECTED EXIT ANNU
Slide 14: The Forward Plan projects acquisition of more partners that deliver more revenue
The Forward Plan projects acquisition of more partners that deliver more revenue $35m More Billing Across Partners More FY20 FY21 FY22 Products $30m Billing Partners 26 ~40 ~60 PRODUCT (#) FY20 FY21 FY22 Sales Investment $4.3m $5.3m $7.7m Domestic $25m Email 165,000 185,000 200,000 Web 100,000 100,0
Slide 15: The Forward Plan projects revenue growth and improved margins
The Forward Plan projects revenue growth and improved margins FY20 FY21 FY22 % change % change Revenue Growth POTENTIAL REVENUES (m) (m) (m) 20/21 21/22 134% Total Revenue $8.2 $11.3 $26.5 37% 134% Recurring Revenue $7.4 $10.5 $25.3 42% 141% 37% Domestic $7.1 $7.2 $8.1 1% 12.7% International $0.2 $3
Slide 16: The Forward Plan projects release of additional products into a growing addressable market
The Forward Plan projects release of additional products into a growing addressable market FY20 FY21 FY22 Addressable Market $1.88b $2.03b $2.2b Projected Projected Billing Product Investment $5.0m $4.9m $4.7m Addressable Partners Market $2.20b ~60 ADR We are here E $2.03b ~40 E $1.88b E EWF 26 EWF
Slide 17: The Forward Plan projects roll-out of additional platforms
The Forward Plan projects roll-out of additional platforms FY20 FY21 FY22 Platform Investment $2.3m $2.4m $2.8m (6) Existing Platforms New Platforms 17
Slide 18: The Forward Plan projects expansion of 24/7 customer service centres
The Forward Plan projects expansion of 24/7 customer service centres Customer Support FY20 FY21 FY22 Investment $1.3m $1.4m $1.6m Platforms Sydney Level 2/3 Support India Level 1/2/3 Support 24 x 7 18
Slide 19: The Forward Plan projects conservative market penetration
The Forward Plan projects conservative market penetration TARGET METRIC FY20 FY21 FY22 Global Target Market (@ 8% pa growth) *$1.88b $2.03b $2.2b Projected Billing Partners 26 ~40 ~60 Projected Product Offering EWF+E EWF+E+ADR EWF+E+ADR+ Projected International Line of Sight *$60m ~$80m ~$100m % of
Slide 20: The Forward Plan projects cashflow break even in December 2022
The Forward Plan projects cashflow break even in December 2022 $18m $16m $15.37m Key Assumptions: Projected normalised cashflow and closing cash balances • Domestic customer prepayment in $14m Feb ’21 and Feb ’22 • R&D rebates in Dec ’20 and Dec ’21 $12.86m • Business activity returns to pre-COVID-
Slide 21: Use of Funds
FirstWave A global cyber security company Use of Funds 21
Slide 22: The Forward Plan projects expenditure and investment as follows…
The Forward Plan projects expenditure and investment as follows… FY20 FY21 FY22 $18.9m $18.8m $21.6m 15% 11% 10% 22% 26% 26% 12% 14% 17% 13% 12% 13% 28% 35% 23% 8% 7% 8% Non Labour Corporate & Admin Sales & Marketing Support Platforms Product Mgt & Development • Includes both operational and capital
Slide 23: Offer Timetable
FirstWave A global cyber security company Offer Timetable 23
Slide 24: Timetable
Timetable Event Date Announcement of the Transaction, and Placement. Institutional Entitlement Offer opens Thursday, 21 May 2020 Placement and Institutional Offer conducted Thursday, 21 May 2020 Announcement of results of Placement and Institutional Offer Friday, 22 May 2020 Trading halt lifted – Sh
Slide 25: Thank You
Thank You A global cyber security company 25
Slide 26: Appendix: Calculations
FirstWave A global cyber security company Appendix 1 Calculations 26
Slide 27: Calculating the FY20 Target Market of $1.88B
Calculating the FY20 Target Market of $1.88B ‘EWF’ + ‘E’ ‘EWF’ ‘E’ TAM: $14BN TAM: $11.7BN TAM: TOTAL ADDRESSABLE MARKET - TAM - Worldwide Worldwide MSS/Cloud-Based Firewall & Content Enterprise Endpoint Security (Telco/SP-served) Security Market SMB + % Medium SMB + % Medium Businesses (<200 Busine
Slide 28: Q1 FY20 Line of Sight through partners ~$45m ARR
Q1 FY20 Line of Sight through 18 partners ~$45m ARR Level 2 Partner Target FY20 10,000’s of Level 2 Partner Accessibility Enterprise/SMB $1.8b global market FY20 customers opportunity 5 Level 1 Partner 16 FCT 10,000s of Enterprise/SMB 5 customers 13 4 3 10,000s of Enterprise/SMB customers 6 TOTAL: 5
Slide 29: Q3 FY20 Line of Sight through 26 partners ~$60m ARR
Q3 FY20 Line of Sight through 26 partners ~$60m ARR Billing Partners Q3 FY20 10,000’s of Level 2 Partner Accessibility Enterprise/SMB $1.88b global market Q3 FY20 customers opportunity 4 Level 1 Partner 24 FCT 10,000s of Enterprise/SMB 3 customers 9 84 7 10,000s of Enterprise/SMB customers 13 TOTAL:
Slide 30: Appendix: Risks and Restrictions
FirstWave A global cyber security company Appendix 2 Risks and Restrictions 30
Slide 31: Key Risks
Key Risks This section discusses some of the risks associated with an investment in FirstWave. FirstWave’s business is subject to a number of risk factors both specific to its business and of a general nature which may impact on its future performance and forecasts. Before subscribing for FirstWave
Slide 32: Key Risks cont’d
Key Risks cont’d Lead Time Delay There is a risk that the lead time from the identification of new customers/partners to the execution of the contract to product delivery and billing and actual payment for the services may be longer than anticipated. While FirstWave will use its best endeavours to r
Slide 33: Key Risks cont’d
Key Risks cont’d General Risks: Share Market Risks The price of Shares rise and fall and might trade at prices below or above the Offer Price. There can also be no assurance that an active trading market will develop for the Shares. Speculative Nature of Investments Any potential investor should be
Slide 34: Key Risks cont’d
Key Risks cont’d Offer Risks: Underwriting Risk FirstWave has entered into an Offer Management and Underwriting Agreement with Morgans Corporate Limited and Wentworth Global Capital Finance Pty Limited (collectively, Joint Lead Managers) (Underwriting Agreement), pursuant to which Morgans Corporate
Slide 35: Key Risks cont’d
Key Risks cont’d Offer Risks (cont’d) Underwriting Risk (cont’d) • any material statement or estimate in an offer materials which relates to a future matter is not, in the reasonable opinion of the Joint Lead Managers, based on reasonable grounds (including having regard to ASIC Regulatory Guide 170
Slide 36: Key Risks cont’d
Key Risks cont’d Offer Risks (cont’d) Dilution Shareholders who do not participate in the Placement and/or take up all of their entitlements under the Entitlement Offer, will have their percentage of shareholding in FirstWave diluted and will not be exposed to future increases or decreases in FirstW
Slide 37: Foreign Selling Restrictions
Foreign Selling Restrictions This document does not constitute an offer of new ordinary shares (New Shares) of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered or sold, in any count
Slide 38: Thank You
Thank You A global cyber security company 38