Senetas Corporation Limited · ASX:SEN
Senetas — Shareholder Meeting (November 2016)
23 slides from Senetas's shareholder meeting presentation, Nov 17, 2016
Slide 1: 2016 Annual General Meeting – Chairman's Address and CEO Presentation
For personal use only 17 November 2016 The Manager, Listings ASX Limited Company Announcements Office Level 4 Exchange Centre 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam 2016 Annual General Meeting – Chairman’s Address and CEO Presentation We attach a copy of the Chairman’s address and the CEO’s
Slide 2: Chairman's Address
SENETAS CORPORATION LIMITED AGM - NOVEMBER 17, 2016 Chairman’s Address For personal use only It is now 10.30am, this is a properly constituted meeting and a quorum is present. I therefore declare the Annual General Meeting of Senetas Corporation Limited open. I would like to welcome you and thank yo
Slide 3: Chairman's Address: innovation and government support
SENETAS CORPORATION LIMITED AGM - NOVEMBER 17, 2016 The end result is increased jobs, a better skilled workforce and increased GDP leading to greater revenue for government to implement infrastructure, social and other programs For personal use only that our society needs. Taking Senetas as an examp
Slide 4: Chairman's Address: R&D Tax Incentive review
SENETAS CORPORATION LIMITED AGM - NOVEMBER 17, 2016 Our government is currently carrying out a review of the R&D Tax Incentive Program. In For personal use only an attempt to contain the program’s costs, the government is looking to ‘cap’ parts of it. Senetas is concerned about some of these recomme
Slide 5: Chairman's Address: impact of R&D incentive caps
SENETAS CORPORATION LIMITED AGM - NOVEMBER 17, 2016 this is exactly what we will be threatened with should our government proceed with recommended caps to the R&D tax incentives. For personal use only In December last year, during the launch of “The National Innovation and Science Agenda”, our prime
Slide 6: Chairman's Address: call to shareholders
SENETAS CORPORATION LIMITED AGM - NOVEMBER 17, 2016 A company on the cusp of $20million in annual revenue is typically at a critical stage of growth. Ensuring sufficient cash flow when a business may still be in a tax loss situation For personal use only remains a key consideration. The reduction to
Slide 7: CEO Presentation
For personal use only CEO PRESENTATION MR ANDREW WILSON
Slide 8: Agenda
For personal use only AGENDA 1. Highlights 2. Financial Overview 3. Operational Review 4. Outlook
Slide 9: Highlights
For personal use only HIGHLIGHTS
Slide 10: HY16 Highlights
HY16 HIGHLIGHTS For personal use only • Record Net Profit Before Tax despite large increase in R&D spend • Operating revenue increased 19% • Good growth in both sales and maintenance revenue • Strong unleveraged balance sheet and continued growth in cash balance • All new product development project
Slide 11: Financial Overview
For personal use only FINANCIAL OVERVIEW
Slide 12: FY2016 Financial Overview
FY2016 FINANCIAL OVERVIEW For personal use only Year ended 30 June 2016 FY16 FY15 $000’s $000’s Change Revenue from ordinary activities 19,341 16,207 19% Gross profit 16,112 13,449 20% Other income (R&D tax incentive) 2,097 1,653 27% Profit before tax 7,022 6,021 17% Tax expense (1,803) (2,005) 10%
Slide 13: Significant Positive Trend on Key Metrics
SIGNIFICANT POSITIVE TREND ON KEY METRICS For personal use only TRADING REVENUE PROFIT BEFORE TAX $'000 $'000 7,022 19,341 6,021 16,207 11,038 2,458 7,685 (893) Jun 13 Jun 14 Jun 15 Jun 16 Jun 13 Jun 14 Jun 15 Jun 16 NET ASSETS RETURN ON EQUITY $'000 18,526 39% 36% 33% 13,093 9,026 6,071 (14%) Jun 1
Slide 14: Operating Cash Flows
OPERATING CASH FLOWS Change For personal use only Year ended 30 June 2016 FY16 FY15 $000’s $000’s Receipts from customers 19,929 19,217 4% R&D tax rebate net of income tax paid 323 1,386 (77%) Payments to suppliers & employees (14,230) (11,307) (26%) Operating cash flows 5,193 9,577 (46%) Investing
Slide 15: Balance Sheet
BALANCE SHEET For personal use only As at 30 June 2016 FY16 FY15 Change $000’s $000’s Cash and cash equivalents 20,848 15,902 31% Trade and other receivables 5,927 4,043 47% Total assets 29,474 22,392 32% Trade and other payables (1,973) (2,068) 5% Income / company tax payable (1,863) (1,252) (49%)
Slide 16: 4 Year Share Price Performance
16/11/2016 13/10/2016 9/09/2016 6/08/2016 3/07/2016 30/05/2016 26/04/2016 23/03/2016 18/02/2016 15/01/2016 12/12/2015 8/11/2015 4 YEAR SHARE PRICE PERFORMANCE 5/10/2015 1/09/2015 29/07/2015 25/06/2015 22/05/2015 SEN cummulative volume Market trading 18/04/2015 15/03/2015 9/02/2015 SEN share price 6/
Slide 17: Operational Review
For personal use only OPERATIONAL REVIEW
Slide 18: FY16 Operational Review
FY16 OPERATIONAL REVIEW For personal use only Strong growth in commercial sales more than offset slower sales to key government customers • Commercial sector sales growth driven by key North American customers • Commercial customers now represent over 50% of Senetas operating revenue • Stronger than
Slide 19: Research & Development Update
RESEARCH & DEVELOPMENT UPDATE 100Gbps Encryptor For personal use only • Certification process and customer testing underway – expected to be completed before the end of calendar 2016 • Marketing campaign and official launch early in calendar 2017 • Precise timing of commercial release is subject to
Slide 20: Outlook
For personal use only OUTLOOK
Slide 21: 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 22: Summary and Outlook
SUMMARY AND OUTLOOK For personal use only • Record FY16 PBT driven by growth in sales to commercial customers • Gemalto integration of SafeNet now largely complete with improved sales focus evident in the second half of FY16 • All key R&D projects remain on track – R&D expenditure in FY17 is expecte
Slide 23: Senetas Annual General Meeting 2016
For personal use only SENETAS ANNUAL GENERAL MEETING 2016