Slide 1: Revolutionizing Cybersecurity
allot a . : ; - \ Revolutionizing ay Be Cybersecurity February 2024 (NASDAQ & TASE: ALLT) mute Se
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 A i Vee Allot Overview (RK E Communication Service Providers (CSPs) CUS/O™ME* 3555 © Hundreds of CSPs globally * Tier-1 operators GOMPAIN * ALLT (NASDAQ, TASE) * 2023 revenue: $93M
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: Allot Secure CSP Customers
Allot Secure CSP Customers Global 5
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 16000000 Phishing Attacks Total Malware (Millions) 14000000 1,313 1,343 12000000 1,139 10000000 1,002 8000000 857 6000000 4000000 2000000 Phi
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
70 % of consumers expect the CSP to provide a security solution to protect them from malware attacks Consumers are Aware of Threats and Expect CSPs 68 % of US consumers worry about being a victim of identity theft to Provide Solutions Based on survey of 8,000 global participants in Consumer Security
Slide 11: US consumers willing to pay for a security application
MOBILE USERS FIXED BROADBAND USERS 90 % of US consumers are wiling to pay for a security application that protects all 93 % Of US consumers are willing to pay for a security application that protects their mobile devices their broadband connections 63 % minimum of $2 a month 76 % excess of $3 a mont
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 BusinessSecure 15 g g g g £ FS s @ Allot Secure Protecting consumers from threats/crime on the network * Any threat » Anywhere * Any device
Slide 16: Allot Secure and Allot Cloud
Allot Secure 360 Allot Cloud * Threat Intelligence + Web Categorization The only company to offer a * Device Fingerprinting full unified “security blanket’ Oo Jt sgement - + One seamless security experience ------------- a ~ It + Subscriber Oriented 1 1 1 1 1 1 1 1 1 1 é e fn? G co SrE Home Secure B
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 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 Protection protects Drei
Slide 19: Extraordinary Consumer Take Up Rate
Extraordinary Consumer Take Up Rate Sample EU Markets(1) Take Up Rate 70.0% 60.0% Penetration rate by Consumers 50.0% 40.0% 30.0% & SMBs* 20.0% 10.0% 0.0% 1 3 5 7 9 11 13 15 17 19 21 23 25 27 from Months 29 31 33 35 launch 37 39 41 43 45 47 49 51 53 55 57 59 Months from launch SMB Penetration - EU M
Slide 20: 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 21: Positioned For Growth
Positioned For Growth allot
Slide 22: 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, & SMB security subscribe to the service privacy, etc.) 22
Slide 23: 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 24: Financial Overview
Financial Overview allot ©=U0
Slide 25: SECaaS Revenues
SECaaS Revenues $10.6M $7M $4M $2M 2020 2021 2022 2023 25
Slide 26: Recurring Revenue
Recurring Revenue $50M $50M $42M $33M $34M $32M 26
Slide 27: 2024 Target: Breakeven
$M 2019 2020 2021 2022 2023 * Revenues 110 136 146 123 93 Gross Margin 70% 71% 70% 69% 60% OPEX 85 100 108 108 111 Operating Profit (Loss) (8) (3) (5) (23) (55) SECaaS revenues 0.2 1.9 4.1 7.2 10.6 SECaaS ARR (last month run-rate) 0.5 2.7 5.2 9.2 12.7 Non-GAAP 2024 Target: Breakeven * Including cred
Slide 28: Thank You!