Slide 1: Stronger simpler encryption
Arqit Quantum Inc. (NASDAQ: ARQQ) Stronger simpler encryption September 2021
Slide 2: Disclaimer
2 Disclaimer The following presentation, the information communicated during any delivery of the presentation and any question and answer ses sion and any other materials distributed at or in connection with the presentation (collectively, this “presentation”) has be en prepared by Arqit Quantum Inc
Slide 3: Vision
Vision Our mission is to use our world leading quantum encryption platform to keep safe the data of our governments, enterprises and citizens. 3 Arqit’s quantum tech stack allows lightweight end point software to create encryption keys which are computationally secure, zero trust and one time in inf
Slide 4: Problem: legacy encryption is obsolete
Problem: legacy encryption is obsolete 4 ▪ PKI was designed decades ago ▪ It was never intended to protect our hyper connected world ▪ It has many vulnerabilities in its implementation for attackers to exploit ▪ Quantum computers will soon compromise the mathematics at the heart of PKI ▪ The world i
Slide 5: Solution: A new way to distribute symmetric encryption keys
5 Solution: A new way to distribute symmetric encryption keys Arqit transformational innovation A completely new way to create and distribute unbreakable symmetric keys 1,435 patent claims filed Symmetric keys are the solution Long random number cannot be broken by computers Used with physical couri
Slide 6: Transatlantic leadership in cloud encryption
6 Transatlantic leadership in cloud encryption David Bestwick CTO & Founder Former CTO, Avanti plc. Marconi engineer. Astrophysicist. Royal Aeronautical Society medal winner Dr Daniel Shiu Chief Cryptographer Former Head of Mathematics & National Technical Authority for Cryptographic Design & Quantu
Slide 7: What does the product do?
7 What does the product do? ▪ Quantum satellites will put the root source of symmetric key data into global data centres to form the QuantumCloud TM ▪ In our network today, the role of satellites is emulated in data centres, which is very secure. But, targeted for 2023, we intend to launch two quant
Slide 8: Partner and government endorsements
“Arqit is paving the way in developing a new generation of quantum technologies that defend against sophisticated cyber - attacks on national governments”. - UK Government Minister for Science, Amanda Solloway MP “ We are proud to be providing this technology to UK customers, which will bolster our
Slide 9: Commercial strategy - scalable business model
Commercial strategy - scalable business model 9 Product • Software is downloaded by customers and used automatically • Software API calls for keys to be created when needed, which triggers billing Distribution • Channel partners resell the service – strategy to get early traction • Any customer glob
Slide 10: Large and growing information security and risk management market
Large and growing information security and risk management market 10 Arqit plays into every subsegment $125.8bn $194.3bn Note: Calculations performed by Arqit Limited, charts/graphics created by Arqit Limited based on Gartner research. Source: Gartner, Inc ., Forecast: Total Global Information Secur
Slide 11: Material backlog and pipeline already secured
Material backlog and pipeline already secured 11 Government of UK Government of UK ~$1.1 billion of backlog and pipeline ~$130m ~$110m ~$140m ~$740m Executed contracts for project or annual recurring revenues Contracts for annual recurring revenues under negotiation Framework contracts for technolog
Slide 12: Early distribution strategy backed by blue-chip partners
Early distribution strategy backed by blue - chip partners Tech applies to every vertical in the World, but early Customers secured in key vertical markets 12 Note: Existing customers and contracts under negotiation Defence Telco Financial Services Automation Making fixed and 5G networks end to end
Slide 13: Monetisation
13 Monetisation ▪ There are three different ways for customers to pay Arqit for the QuantumCloud TM : ▪ A channel partner (like a national telco) sells to large enterprises and government departments and pays Arqit net of its margin – operating now ▪ A defence customer buys a “private instance” from
Slide 14: Distributors deliver early go-to-market wins
Distributors deliver early go - to - market wins 14 Typical Customer 1 – The Channel Partner ▪ Distributors want early exclusive advantage ▪ We offer quasi territorial or sectoral exclusivity ▪ In return, a binding revenue commitment over five years ▪ When they sell more than the minimum they pay mo
Slide 15: Identifying major revenue sources early on
Identifying major revenue sources early on 15 Typical Customer 2 – Private Instance ▪ Defence users are early adopters ▪ There is currently NO COMPETITOR to match Arqit ▪ Governments WANT the Arqit tech ▪ BUT they want a private instance » They want to control physical security of infra from kinetic
Slide 16: Scaling the business through global SME adoption
Scaling the business through global SME adoption 16 Typical Customer 3 – Cloud Delivered Enterprise ▪ Initial marketing focussed on MDAs and Government ▪ The Cloud delivered version of QuanutmCloud TM will be launched in 2022, meaning: ▪ Customer validation done on line ▪ Contract signature and paym
Slide 17: Financial projections highlights
17 Financial projections highlights Dec - YE, $ m 2021E 2022E 2023E 2024E 2025E Quantum Cloud TM 4 16 148 400 660 Project revenues 11 16 5 2 - Total r evenue 14 32 153 402 660 % growth 125% 371% 163% 64% Total COGS (5) (9) (13) (23) (51) Gross profit 10 24 140 378 609 % margin 66% 72% 91% 94% 92% (
Slide 18: Transaction - admitted to NASDAQ after Centricus business combination
18 Transaction – NASDAQ: ARQQ Arqit Quantum Inc. was admitted to NASDAQ on September 7 th following a business combination with Centricus Acquisition Corp Gross proceeds were $115m, Net $96m Approximately double the funding requirement of the Arqit business plan was covered, delivering significant h
Slide 19: Defining the peer group for Arqit
Defining the peer group for Arqit 19 x First movers in new categories x Similar high growth profile Capital intensive unlike Arqit Not as profitable in near term as Arqit Recent SPAC transactions Established security x Security software end market Mature / relatively low growth Government tech x Sim
Slide 20: Highly Attractive Investment Case
20 Highly Attractive Investment Case Product solves an existential threat to the entire digital world Arqit can stop the cyber attacks crippling infrastructure and services Product LIVE and for sale today QuantumCloud TM V1.0 released July Strong customer base $130m in contracts already from blue ch
Slide 21: Thank you
Thank you — N \y