Slide 1: Senetas 2016 Interim Results
For personal use only SENETAS 2016 INTERIM RESULTS 29 February 2016
Slide 2: Agenda
AGENDA For personal use only • HY16 profitable – but below expectations • Balance sheet and cash position remain strong • Continuing investment to drive new revenue opportunities • Outlook remains positive 1 © Senetas Corporation Limited 2016 Interim Results
Slide 3: HY16 Profitable – But Below Expectations
For personal use only HY16 PROFITABLE – BUT BELOW EXPECTATIONS
Slide 4: HY16 Highlights
HY16 HIGHLIGHTS For personal use only Profitable • Operating revenue increased 7% to $8.7m • Net profit before tax of $1.8m • Net profit after tax of $1.6m Strong Balance Sheet • Net assets at 31 December 2015 – $15.0m • Cash balance at 31 December 2015 – $16.3m Continuing to build capability • All
Slide 5: HY16 Financial Overview
HY15 FINANCIAL OVERVIEW For personal use only HY16 HY15 Change $000’s $000’s Revenue from ordinary activities 8,665 8,119 7% Profit before tax 1,832 2,820 (35%) Net profit after tax 1,586 1,944 (18%) Revenue continued to grow in HY16 despite sales delays and temporary sales force disruption ‒ Delays
Slide 6: Revenue Trend Remains Positive
REVENUE TREND REMAINS POSITIVE For personal use only TRADING REVENUE PROFIT BEFORE TAX half yearly, #039;000 half yearly, #039;000 2,820 8,666 8,119 1,832 4,828 306 Dec 13 Dec 14 Dec 15 Dec 13 Dec 14 Dec 15 Revenue up 7% Net margins lower • Non-government sales continue to grow • Reduced by the forecast F
Slide 7: Returns on Investment
RETURNS ON INVESTMENT For personal use only NET ASSETS RETURN ON EQUITY #039;000 Half Yearly 15,010 13,093 19% 10,978 13% 7% Dec 14 Jun 15 Dec 15 Dec 13 Dec 14 Dec 15 Net assets up 15% to 15.0m Attractive return on assets • Continued profitability driving growth in • Return on equity remains high at 13
Slide 8: Balance Sheet and Cash Position Remain Strong
For personal use only BALANCE SHEET AND CASH POSITION REMAIN STRONG
Slide 9: Operating Cash Flows
OPERATING CASH FLOWS For personal use only HY16 HY15 Change $000’s $000’s Operating cash flows 570 3,573 (84%) R&D tax concession net of tax paid 401 1,447 (72%) Investing cash flows (132) (363) 64% Operating cash flow lower but positive ‒ Key drivers of lower cash flow in HY16 were: • Income tax pa
Slide 10: Balance Sheet Supports Growth
BALANCE SHEET SUPPORTS GROWTH For personal use only HY16 FY15 Change $000’s $000’s Cash and cash equivalents 16,339 15,902 3% Trade and other receivables 2,909 4,043 (28%) Total Liabilities (6,843) (9,298) 26% Cash balance at 31 December 2015 of $16.3m ‒ Cash balance continues to grow creating flexi
Slide 11: Continuing Investment to Drive New Revenue Opportunities
For personal use only CONTINUING INVESTMENT TO DRIVE NEW REVENUE OPPORTUNITIES
Slide 12: HY16 Operational Overview
HY16 OPERATIONAL OVERVIEW For personal use only Sales of encryptors remain the key revenue driver: ‒ Sales were 60% of revenue and maintenance fees were 40% of revenue in HY16. ‒ With the full benefits of the new contract with Gemalto now realised Senetas expects the balance between maintenance and
Slide 13: HY16 Operational Overview
HY16 OPERATIONAL OVERVIEW For personal use only Delays with the completion of key contracts ‒ Sales to key overseas government customers that were expected in HY16 have been delayed. ‒ The delayed sales are expected to be completed prior to 30 June 2016. ‒ Commercial sales were also impacted by only
Slide 14: Research & Development Update
RESEARCH & DEVELOPMENT UPDATE For personal use only Acceleration of R&D roadmap with all key new product development on track ‒ 100Gbps encryptor • Development well advanced and customer testing commencing shortly • The certification process is due to commence mid calendar 2016 • Expect to be releas
Slide 15: Outlook Remains Positive
For personal use only OUTLOOK REMAINS POSITIVE
Slide 16: Key Growth Drivers Remain Unchanged
5 KEY GROWTH DRIVERS REMAIN UNCHANGED For personal use only 1. Accelerate growth in key high speed encryptor (HSE) markets in partnership with Gemalto to leverage their increased sales and marketing footprint 2. Develop new opportunities in low HSE penetration, markets such as India, Japan, Singapor
Slide 17: Summary and Outlook
SUMMARY AND OUTLOOK For personal use only • HY16 profit was below expectations however revenue continued to grow • Delayed sales are expected to be completed before the end of FY16 • Senetas’ recent capability improvement projects and R&D initiatives are on track and are expected to begin contributi
Slide 18: 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 UPO
Slide 19: Thank You
For personal use only THANK YOU