Slide 1: Senetas Corporation Corporate Overview October 2014
For personal use only SENETAS CORPORATION CORPORATE OVERVIEW OCTOBER 2014 1
Slide 2: Agenda
AGENDA For personal use only 1. Introduction 2. Financial Performance and Outlook 3. Market Overview 4. Technology and Roadmap 5. Questions / Discussion 2
Slide 3: 1.0 Introduction
For personal use only 1.0 | INTRODUCTION
Slide 4: Capital Structure
SENETAS CORPORATION For personal use only ASX: SEN Capital Structure Market Cap. ($0.05 share): $48 mill Shares on Issue: 1,065 m Revenue: $11.0 mill EBITDA $2.7 mill Net Profit: $2.9 mill Net Cash 13/10/14: $9.0 mill Directors Francis Galbally - Chairman Andrew Wilson, CEO Lt Gen Ken Gillespie (Non
Slide 5: What is Encryption?
WHAT IS ENCRYPTION? For personal use only ENCRYPTION? WHAT IS IT Encryption is the process of encoding messages or information in such a way that only authorised parties can read it. 5
Slide 6: Senetas Sophisticated Data Encryption Devices
SENETAS SOPHISTICATED DATA ENCRYPTION DEVICES For personal use only World leading developer of high speed, Layer 2 network data security devices • Products meet stringent world-wide standards for security Overview • Products deployed across 29 countries • Head office in Melbourne, Australia • ASX-li
Slide 7: Business Highlights
BUSINESS HIGHLIGHTS For personal use only • A leading developer of Layer 2 network data encryption devices Global leader • IP-rich with excellent R&D and product engineering capabilities • Sophisticated, high speed, scalable, low latency with plug-and-play ease-of-use Advanced products • Products in
Slide 8: Government, Defence and Commercial Customers
GOVERNMENT, DEFENCE AND COMMERCIAL CUSTOMERS ACROSS 29 COUNTRIES For personal use only 8
Slide 9: 2.0 Financial Performance and Outlook
For personal use only 2.0 | FINANCIAL PERFORMANCE AND OUTLOOK
Slide 10: June 2014 Results Highlights
30 JUNE 2014 RESULTS HIGHLIGHTS For personal use only • 2014 NPBT of $2.5m vs 2013 loss before tax of $893k; • $44% increase in operating revenue to $11m; – Increased in international sales from SafeNet – Increased maintenance income. • R&D tax refund of $1.4m • 40% increase in net assets to $8.5m.
Slide 11: Historical Revenue & Profit Performance
HISTORICAL REVENUE & PROFIT PERFORMANCE Net Profit Before Tax #039;000 For personal use only 3,000 2,000 2,458 1,000 215 - -1,000 -890 -2,000 -1,458 -3,451 -3,000 -4,000 2010 2011 2012 2013 2014 Total Revenue #039;000 14,000 12,000 12,478 10,000 8,000 9,160 8,590 8,398 6,000 6,796 4,000 2,000 - 2010 2011
Slide 12: Go To Market Model
GO TO MARKET MODEL For personal use only • Senetas has appointed SafeNet Inc. as its world wide master distributor (excl Australia and New Zealand). – SafeNet Inc. reaches across 100 countries and has 25,000 customers; 200+ strong sales force: » Senetas shares in revenue from SafeNet product and mai
Slide 13: Near Term Market Drivers
NEAR TERM MARKET DRIVERS For personal use only NEW DISTRIBUTION DISTRIBUTION RELATIONSHIP WITH SAFENET • Far greater access to key global markets; • Direct customer contact with largest customers; and • Relationship strongest it has ever been. SPECIFIC MARKET ENCRYPTORS • Custom algorithm encryp
Slide 14: Acquisition of SafeNet by Gemalto
ACQUISITION OF SAFENET BY GEMALTO For personal use only • 8 August 2014, Gemalto NV (‘Gemalto’) entered into an agreement to acquire SafeNet; • Gemalto is a substantial global organisation, with a turnover of US$3 billion in 2013; • Senetas should benefit from Gemalto’s presence in 45 countries and
Slide 15: Key Strategic Growth Objectives for 2015
KEY STRATEGIC GROWTH OBJECTIVES FOR 2015 For personal use only • Continue to deliver strong financial results; • Grow international sales and extend collaboration with SafeNet in marketing and sales planning; • Increase focus on Asia, Eastern Europe, Middle East and the commercial market as an oppor
Slide 16: 3.0 Market Overview
For personal use only 3.0 | MARKET OVERVIEW
Slide 17: 2014/15: The Year of Encryption
2014/15: THE YEAR OF ENCRYPTION For personal use only 17
Slide 18: Everywhere You Look…
EVERYWHERE YOU LOOK… For personal use only 18
Slide 19: Key Market Characteristics
KEY MARKET CHARACTERISTICS For personal use only • Government & Defence agencies regulated to use FIPS, CC or CAPS products; • Demand for high speed networks e.g. > 1Gbps; • Mature commercial regulatory environment – e.g., directors duties, privacy legislation, banking prudential requirements, etc…;
Slide 20: Market Drivers
MARKET DRIVERS For personal use only GROWING AWARENESS OF RISK TO SENSITIVE DATA • Rise in the level of cyber threat; • Awareness of the risk of vulnerability of data in transit; and • Growing data volumes = increased use of Layer 2 networks. (in key markets). MATURING REGULATION • Data Breach n
Slide 21: 4.0 Technology
For personal use only 4.0 | TECHNOLOGY
Slide 22: Senetas Encryption Technology
SENETAS ENCRYPTION TECHNOLOGY For personal use only PURPOSE BUILT ENCRYPTION TECHNOLOGY OVERCOMES TRADITIONAL ENCRYPTION LIMITATIONS: • Complexity • Incompatibility • Performance • Operate in either point-to-point or meshed/multi-point networks ENCRYPTION PRODUCTS FOR SECURING THE FOLLOWING TY
Slide 23: Layer 2 Encryption Enables High Speed, Scalable, Secure Data Transfer
UNLIKE LAYER 3, LAYER 2 ENCRYPTION ENABLES HIGH SPEED, SCALABLE, SECURE DATA TRANSFER WITH NEAR ZERO LATENCY For personal use only APPROXIMATELY 90% OF GLOBAL NETWORKS ARE LAYER 3 IP/TCP ROUTED NETWORKS Low impact on network NETWORK TOPOLOGIES ARE EVOLVING AND THE USE OF performance LAYER 2 IS B
Slide 24: New CN6000 Series Encryptors
OUR NEW CN6000 SERIES ENCRYPTORS OF ADVANCED LAYER 2 ENCRYPTION TECHNOLOGY For personal use only • Designed to address the need for high speed (up to 10 Gbps), highly secure, highly resilient wire speed encryption of Ethernet traffic across both dark fibre and metro or wide area Ethernet services •
Slide 25: High Speed Is Everywhere for Everyone
HIGH SPEED IS EVERYWHERE FOR EVERYONE For personal use only Cloud Security DCI / Disaster Multicast Recovery Networking Carrier Ethernet Network Ethernet Remote Connections Connections 25
Slide 26: Optical Fibre Is Inherently Insecure
IT HAS BEEN PROVEN THAT OPTICAL FIBRE IS INHERENTLY INSECURE For personal use only MYTH Optical fibre is inherently secure Anyone with mischief or criminal intentions can access data anywhere along an optical cable TRUTH that is not adequately protected General Alexander Haig1 showed that a readil
Slide 27: Triple Certified Senetas Encryption Products
TRIPLE CERTIFIED SENETAS ENCRYPTION PRODUCTS For personal use only Government and Defence Certification received in March 2012 (certificate Certification received in November 2009 (certificate Certification received in November 2012 (certificate numbers 1267 and 1268) number 2011/77) numbers 1
Slide 28: Product Roadmap
5. PRODUCT ROADMAP PRODUCT UPDATE / R&D ROADMAP For personal use only NEAR-TERM PRIORITIES NEW AND INNOVATIVE PRODUCT ENHANCEMENTS • CN4010 entry level encryptor – Now launched • CN6010 cost reduced 1 Gb – Now launched • CN8000 multi-slot – Trialling with Customers SPECIFIC MARKET ENCRYPTORS: •
Slide 29: Other Players in the Layer 2 Crypto Device Market
THERE ARE ONLY 3 OTHER PLAYERS WHO COMPETE IN THE MARKET FOR LAYER 2 CRYPTO DEVICES For personal use only ATmedia is a Germany-based provider of high speed encryption products Thales, a €5bn France-based diversified equipment and solutions provider, is a reseller of ATmedia Layer 2 encryptors th
Slide 30: 6.0 Questions
For personal use only 6.0 | QUESTIONS
Slide 31: 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