Slide 1: Revolutionizing Consumer Cybersecurity
allot PS Revolutionizing Lest ; Cybersecurity February 2023 (NASDAQ & TASE: ALLT) mmmte |
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 Allot Overview MARKET Communication Service Providers (CSPs) CUSTOMER BASE + Hundreds of CSPs globally * Tier-1 operators COMPANY » ALLT (NASDAQ, TASE) HIGHLIGHTS * 2022 revenue: $123M PROVEN Decades of experience in CSPs and Cybersecurity MANAGEMENT TEAM
Slide 4: Allot Smart Technology Heritage
Allot Smart Technology Heritage Deployed with hundreds of CSPs worldwide Telco grade solutions High Throughput Multitenancy Quality 5G, cloud native and Virtual AI technology 4
Slide 5: Global CSP Customers
Allot Secure CSPéétistomers More than 20 million global subscribers protected Tier-1 operators trust Allot Tier1 csp { Mert é csP ‘icr1 rsP Tier 2 CSP allot
Slide 6: The Consumer & SMB Cybersecurity Challenge
The Consumer & SMB Cybersecurity Challenge
Slide 7: Consumer & SMB Cyberthreats Exponentially Growing
Consumer & SMB Cyberthreats • Border between office and work has blurred • COVID accelerated this change Exponentially Growing • 5G will accelerate it further Phishing Attacks Total Malware (Millions) 1,200,000,000 1,313 1,343 1,000,000,000 1,139 800,000,000 1,002 600,000,000 857 400,000,000 200,000
Slide 8: Security Apps Don’t Protect the Mass Market
Security Apps Don’t Protect the Mass Market The opportunity for telecom providers to offer a simple, clear package of cybersecurity protections for homes and families appears significant Consumers don’t Up to 5% of Security apps want to implement consumers do not solve TAG Cyber, March 2022 security
Slide 9: The Opportunity
allot The Opportunity
Slide 10: Consumers are Aware of Threats and Expect CSPs to Provide Solutions
of consumers expect the CSP to provide a security solution to protect them from malware attacks Consumers are Aware of of US consumers worry about Threats and Expect CSPs being a victim of identity theft to Provide Solutions of US consumers worry about Based on survey of 8,000 global participants in
Slide 11: Consumers willing to pay for security application
MOBILE USERS FIXED BROADBAND USERS of US consumers are wiling Of US consumers are willing to pay for a security to pay for a security application that protects all application that protects their mobile devices their broadband connections minimum of $2 a month excess of $3 a month minimum of $4 a mo
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 Differentiator” for CSPs
Network-Based Cybersecurity is the “Next Big Differentiator” for CSPs Coverage, Speed, Quality are commoditized Value #1 Value #2 Value #3 Brand New Churn recognition revenues reduction 13 13
Slide 14: The Allot Secure Solution
The Allot Secure Solution \ot allot 14 © 10)
Slide 15: Allot Secure
allot NetworkSecure Allot Secure Protecting consumers from threats/crime on the network 560° Security * Any threat » Anywhere * Any device BusinessSecure is EU
Slide 16: Allot Secure
Allot Secure 360 The only company to offer a full unified “security blanket’ Allot Cloud * Threat Intelligence + Web Categorization + Device Fingerprinting I] Oo Allot Secure Management + One seamless security experience Q Ir + Subscriber Oriented ' I ' I ' I ' I ' I ' . 4 fo ee 2» © [ES Home Secure
Slide 17: The Economics
The Economics allot "7
Slide 18: Customers willing to pay 5% to 20% of price plan for Cybersecurity
Customers willing to pay 5% to 20% of price plan for Cybersecurity allot Consumer SMB ( ») 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 Protec
Slide 19: Extraordinary Consumer Take Up Rate
Extraordinary 70% Consumer Take Up Rate Sample EU Markets(1) 60% Take Up Rate 50% Penetration rate 40% by Consumers 30% & SMBs* 20% 10% 0% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 Months from launch SMB Penetration – EU Market (2) 35% 33% 34%
Slide 20: Allot CSP Value Proposition
Provide all required to CSP (hardware, software, professional services, marketing support and support & maintenance) 0 upfront charge Allot CSP Value Proposition 0 financial commitment (Large CSPs) Revenue share 20
Slide 21: Simple on-boarding provides a key factor
We are facing attach rates of up to Simple on-boarding provides a key factor 80% of new customers. as customers are happy to receive immediate protection with no hassle. Martin Westhoff Allot contributes to a higher NPS and Strategy and Marketing Home boost to our brand. at Hutchison Drei Osterreich
Slide 22: Positioned For Growth
Positioned For Growth allot
Slide 23: 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 23
Slide 24: 5G Network Protection: Additional Cybersecurity Growth Engine for Allot
5G We’ve come to the conclusion that Allot has Network Protection: the most in-depth capabilities to detect, in real time, threats and with a lot of different Additional techniques and capabilities. Cybersecurity Growth Engine for Allot Mark Rouanne Chief Network Officer DISH 24
Slide 25: 4 Growth Vectors to the Future
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.) 25
Slide 26: Seizing the Opportunity
Threats to consumers & SMBs are growing Consumers & SMBs are vulnerable, existing solutions are not enough Seizing the Customers are aware, look to CSPs for Opportunity solutions and are willing to pay for them Allot is revolutionizing consumer cybersecurity with a network-based security service off
Slide 27: Financial Overview
Financial Overview allot ©=U0
Slide 28: Transition to Security
Transition to Security (% of total company revenues) Smart Security Future Target 2022 revenues : $123M $29M <50% 23% $94M >50% 77% 28
Slide 29: SECaaS Revenues
SECaaS Revenues $11-13M $7M $4M $2M 2020 2021 2022 2023 Target 29
Slide 30: Improving Revenue Visibility
Improving Revenue Visibility Future target $50M $42M More than $33M $34M $32M $60M in recurring revenue 30
Slide 31: Improving ARR Visibility
Improving ARR Visibility 8%-22% 10% $52M $47M $37M $34M 2019 2020 2021 2022 2023 Target 2023 31
Slide 32: Q4-2022 Revenues Gross Margin
$M 2019 2020 2021 Q4-2022 2022 Revenues 110 136 146 33 123 Gross Margin 70% 71% 70% 68% 69% OPEX 85 100 108 28 108 Operating Profit (Loss) (8) (3) (5) (5) (23) SECaaS revenues 0.2 1.9 4.1 2.2 7.2 SECaaS ARR (last month run-rate) 0.5 2.7 5.2 9.2 9.2 Non-GAAP 32
Slide 33: Allot Secure strengths & challenges
Allot Secure strengths & challenges Solutions Competitors Financial CSP (Zero touch) (360 Solution) resources priorities/GTM Problem TAM Company Launch period (Pain points) infrastructure (delays) 33
Slide 34: Thank You!