Slide 1: Senetas Corporation Limited 2020 Full Year Results
For personal use only Senetas Corporation Limited 2020 Full Year Results – 28 August 2020 © 2020 Senetas Corporation Slide 1
Slide 2: FY2020 Group Highlights
FY2020 Group Highlights For personal use only • Operating revenue of $22.6 million – up 6.1% on FY2019 − Group revenue includes $2.8 million of revenue from Votiro for the period after it became a controlled entity in November 2019 • Gross margins for the Group of 87% • Operating profit before tax f
Slide 3: FY2020 Highlights – Senetas Segment
FY2020 Highlights – Senetas Segment For personal use only • Operating revenue down 7.1% with lower product sales partially offset by good growth in maintenance revenue • Higher sales revenue in Asia Pacific, but revenue in Europe and North America was lower • Good growth in US Government revenue off
Slide 4: FY2020 Highlights – Votiro
FY2020 Highlights – Votiro For personal use only • Third tranche of Senetas’s investment in Votiro of US$2 million (A$2.9 million) was paid in January 2020 increasing Senetas’s ownership of Votiro to approximately 60% • Global Votiro sales and marketing capability established. US based sales team no
Slide 5: COVID-19 Update
COVID-19 Update For personal use only • Customer interest remains strong, but sales execution has slowed as a result of disruption to the normal customer engagement process and product testing procedures – no supply chain issues have emerged to date • Sales lead times for Senetas products are long a
Slide 6: Key Financials
KEY FINANCIALS For personal use only © 2020 Senetas Corporation Slide 6
Slide 7: FY2020 Key Financials
FY2020 Key Financials For personal use only Full year ended 30 June 2020 ($000’s) FY2020* FY2019 Change Revenue from ordinary activities 22,605 21,313 6.1% Gross profit 19,641 16,692 17.7% Gross Margin % 87% 78% 8pts Other income 712 708 0.5% Share of loss of an associate* (1,234) (1,651) 25.2% Prof
Slide 8: Senetas Operating Segment Results
Senetas Operating Segment Results Full year ended 30 June 2020 ($000’s) FY2020 FY2019 For personal use only Revenue from ordinary activities 19,790 21,313 Gross profit 16,950 16,692 Gross Margin % 86% 78% Other income 1,254 708 Profit (loss) before tax 3,269 320 Adjustments to calculate underlying S
Slide 9: Strong Group Balance Sheet With No Debt
Strong Group Balance Sheet With No Debt For personal use only NET ASSETS #039;000s CASH & CASH EQUIVALENTS #039;000s 23,552 23,258 21,483 20,345 20,848 19,734 20,091 18,526 17,860 15,711 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 Since FY2018 Senetas has returned $4.5 million to shareholders via di
Slide 10: Operational Update
OPERATIONAL UPDATE For personal use only © 2020 Senetas Corporation Slide 10
Slide 11: Senetas
Senetas For personal use only • Continued growth in 100Gbps encryptor sales as more customers move to adopt 100Gbps network technology • Good growth in sales to government customers – sales to commercial customers have been slowed by COVID-19 and related economic impacts • Recurring maintenance reve
Slide 12: R&D
R&D For personal use only • Network Independent Encryption capability for Senetas’s CN series hardware encryptors provides the capability to encrypt concurrently across Ethernet and Internet protocol networks – substantially increasing FY2020 Priorities the product use cases. The development has bee
Slide 13: Network Independent Encryption
Network Independent Encryption For personal use only Network Independent Encryption now available across Senetas’s CN Series hardware encryptors • The exponential growth in Cloud-enabled services and applications has seen organisations’ data networks become increasingly multi-Layer, particularly in
Slide 14: Custom Algorithm
Custom Algorithm For personal use only • Development of Senetas’s custom algorithm encryptor for the Eastern European market has been completed • Opens a completely new market in a region where Senetas has not previously had products to sell • Sales and marketing via Thales global distribution agree
Slide 15: Quantum Readiness
QUANTUM READINESS For personal use only © 2020 Senetas Corporation Slide 15
Slide 16: From Crypto-Agility to evolving Quantum-Proof encryption solutions
From Crypto-Agility to evolving Quantum- For personal use only Proof encryption solutions The advent of quantum computing poses the single greatest cybersecurity threat in history. In the hands of bad actors, it will put today’s conventional mathematics-based data encryption at risk. Senetas solutio
Slide 17: Senetas encryption solutions' Quantum Evolution
Senetas encryption solutions’ Quantum For personal use only Evolution Quantum computers’ performance characteristics will make them ideal for cyber-attacks and decryption of today’s conventionally encrypted data. Senetas is evolving its crypto-agile and high- performance encryption platform: • Certi
Slide 18: Senetas encryption solutions' Quantum Evolution
Senetas encryption solutions’ Quantum For personal use only Evolution Evolving from today’s conventional mathematics-based encryption algorithms to future quantum-resistant algorithms. This will provide customers long-term data protection against the arrival of quantum computing. Today’s conventiona
Slide 19: Delivering a secure transition to a future Quantum-Safe world
Delivering a secure transition to a future For personal use only Quantum-Safe world Quantum-safe encryption is not limited to quantum-resistant algorithms alone. Senetas R&D’s quantum evolution will provide a secure transition for sensitive government, defence and business data: • NIST evaluated can
Slide 20: SureDrop
SURE DROP For personal use only © 2020 Senetas Corporation Slide 20
Slide 21: Cyber-Threats to the 'New Normal' – SureDrop Secure Remote Working
Cyber-Threats to the ‘New Normal’ – SureDrop For personal use only Secure Remote Working In the new ‘Covid-19 world’, there is every chance that ‘work from home’ will become the new normal. Organisations must provide a secure and flexible file-sharing and collaboration tool. Senetas SureDrop provide
Slide 22: SureDrop Secure Remote Working Features
Cyber-Threats to the ‘New Normal’ – SureDrop For personal use only Secure Remote Working In addition to SureDrop’s end-to-end encryption and file fragmentation security, it now offers: • Support for Microsoft 365, Azure and Outlook • Integration with Votiro Disarmer for protection against all malwar
Slide 23: Votiro
VOTIRO For personal use only © 2020 Senetas Corporation Slide 23
Slide 24: Votiro Update
Votiro Update For personal use only • Established presence in the North American market & executed initial product sales • Strategic partnership and distribution agreement signed with Thales focusing on North American government agencies • Growth outlook for Votiro’s CDR technology remains very posi
Slide 25: Detailed Financials
DETAILED FINANCIALS For personal use only © 2020 Senetas Corporation Slide 25
Slide 26: Operating Revenue
Operating Revenue For personal use only REVENUE BY REGION Asia Pacific Europe USA 22,605 21,313 18,920 18,971 • Small declines in USA and Europe revenue 17,591 12,596 • Asia Pacific revenue growth reflects increased 13,214 Senetas encryption business revenue and the 12,235 10,018 14,910 inclusion of
Slide 27: Cash Flow
Cash Flow For personal use only Full year ended 30 June 2020 ($000’s) FY2020 FY2019 Change Receipts from customers 22,758 23,781 (4)% Tax paid (921) (679) (36)% Payments to suppliers & employees (21,836) (17,547) (24)% Operating cash flows 170 5,865 - Investing cash flows (1,531) (7,208) - Cash and
Slide 28: Balance Sheet Remains Strong
Balance Sheet Remains Strong For personal use only Full year ended 30 June 2020 ($000’s) FY2020 FY2019 Change Cash and cash equivalents 15,711 17,860 (12)% Trade and other receivables 5,483 5,056 8% Inventories 2,453 2,425 1% Investment in Votiro - 4,973 - Goodwill & intangible assets 14,096 196 - T
Slide 29: Disclaimer
Disclaimer This presentation ("Presentation") has been prepared by Senetas Corporation Limited (“Senetas“ or “the Company”) for the sole purpose of providing For personal use only general and background information on the Company. Nothing contained in this Presentation is or should be relied upon as