Slide 1: Senetas 2017 Interim Results
For personal use only SENETAS 2017 INTERIM RESULTS 27 February 2017
Slide 2: Agenda
For personal use only AGENDA 1. HY17 HIGHLIGHTS 2. KEY FINANCIALS 3. OPERATIONAL REVIEW 4. OUTLOOK
Slide 3: HY17 Highlights
For personal use only HY17 HIGHLIGHTS
Slide 4: HY17 highlights
HY17 highlights For personal use only • Operating revenue up 8% • Profit before tax down 31% as foreshadowed in the 6 February market update • Certification for the new 100G encryptor is on track and a second customer has commenced testing • Custom algorithm export approvals underway in advance of c
Slide 5: Key Financials
For personal use only KEY FINANCIALS
Slide 6: HY17 key financials
HY17 key financials For personal use only Half Year ended 31 December 2016 HY17 1H16 $000’s $000’s Change Revenue from ordinary activities 9,340 8,666 8% Gross profit 6,823 7,191 (5%) Other income 243 211 15% Profit before tax 1,266 1,845 (31%) Tax expense (401) (260) 55% Net profit after tax 865 1,
Slide 7: Trend on key financial metrics
Trend on key financial metrics For personal use only TRADING REVENUE PROFIT BEFORE TAX #039;000 #039;000 7,022 19,341 6,021 16,207 11,038 9,340 2,458 1,266 FY14 FY15 FY16 HY17 FY14 FY15 FY16 HY17 NET ASSETS CASH & CASH EQUIVALENTS #039;000 #039;000 SAT INVESTMENT REDUCED CASH BY $0.86M IN HY17 20,848 19,452 19,
Slide 8: Drivers of HY17 profit movement
Drivers of HY17 profit movement For personal use only 1H17 Profit Before Tax v 1H16 Profit Before Tax #039;000 762 1,845 220 (88) 1,266 (1,042) (432) 1H16 Profit before sales revenue maintenance cost of sales R&D other 1H17 Profit before tax revenue tax • Key driver of PBT decline was lower sales of en
Slide 9: Operating cash flows
Operating cash flows For personal use only Half Year ended 31 December 2016 HY17 HY16 Change $000’s $000’s Receipts from customers 8,266 7,173 19% R&D tax concession net of tax paid 210 401 (48%) Payments to suppliers & employees (9,148) (7,140) (28%) Operating cash flows (141) 570 - Investing cash
Slide 10: Balance sheet remains strong
Balance sheet remains strong For personal use only Half Year ended 31 December 2016 HY17 FY16 Change $000’s $000’s Cash and cash equivalents 19,716 20,848 (5%) Trade and other receivables 2,487 5,927 (58%) Total assets 26,841 29,474 (9%) Trade and other payables (1,855) (1,973) (6%) Income / company
Slide 11: Operational Review
For personal use only OPERATIONAL REVIEW
Slide 12: HY17 operational review
HY17 operational review For personal use only Sales • Previously announced customer network upgrades had a significant impact on key customer ordering patterns in HY17 • The relevant customers have historically been Senetas’ largest customers • Impacts are expected to be temporary and should reverse
Slide 13: New Product Development
New Product Development For personal use only 100G ultra high speed high assurance encryptor • Certification process continues to plan • A second major customer has recently commenced testing • Senetas / Gemalto marketing campaign underway • First sales orders currently expected very late in FY17 Cu
Slide 14: SureDrop
SureDrop For personal use only • Simple file sync and share delivered with the security and resilience of a bespoke on- premises solution • Data encryption, key management and file fragmentation security features are based on the same best-in-class technologies used in Senetas’ multi-certified high-
Slide 15: Outlook
For personal use only OUTLOOK
Slide 16: 2017 Priorities
2017 Priorities For personal use only • A highly innovative and responsive R&D capability remains at the core of Senetas’ business – continuing to develop new products to meet emerging customer needs including faster, ‘high density’ hardware and software solutions, and custom products to suit unique
Slide 17: Summary and Outlook
Summary and Outlook For personal use only • Lower than expected HY17 results driven by disrupted ordering patterns whilst major customers complete network upgrades • Sales impacts expected to be temporary and are expected to reverse as those customers complete their network upgrades • Timing for com
Slide 18: Senetas 2017 Interim Results
For personal use only SENETAS 2017 INTERIM RESULTS 27 February 2017
Slide 19: 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