Arribatec Group Asa · OSL:ARR
Arribatec Group Asa — Hiddn Solutions — Q2 2018 Earnings Presentation
26 slides from Arribatec Group Asa's earnings presentation, Aug 16, 2018
Slide 1: Q2 2018
Q2 2018 Oslo, 16 August 2018 Safeguarding your data anywhere
Slide 2: Q2 Highlights
Q2 Highlights Expanding product offering and distribution capabilities in Europe and US/Canada Preparing for increased sales and volume production Significantly strengthened distribution capabilities through partnerships ALSO to distribute Hiddn’s products to its network of European resellers (produ
Slide 3: Hiddn - focus areas last 12 month
Hiddn - focus areas last 12 month Take advantage of expanding markets and increased focus on data protection Bring unique and patented technology from “prototyping level” to “scalable volume production level” Use high-profiled customer references to expand market access through new distribution chan
Slide 4: Summary of selected stock exchange notices last year
Summary of selected stock exchange notices last year Chronological order of stock exchange notices from Hiddn Solutions ASA since March 20171) IPO and capital funding (March 2017) Repeat order of Hiddn SafeDisk from the Dutch government (June 2017) Hired Svein Birkemoe as a new R&D manager (January
Slide 5: All major pieces in place to increase sales
All major pieces in place to increase sales Production/ Sales & Focus areas in the first 12 months after the IPO Technology R&D distribution Take advantage of expanding markets and increased focus on data protection SwissBit USA/Canada distr. New products & services mass agreement through ClevX/Secu
Slide 6: Increased distribution capacity over last 9 month
Increased distribution capacity over last 9 month Channel Capacity Agreement Order Delivery Available 14 mill PC’s world wide March 2018 YES YES YES yearly 400 outlets and internet sales in the Nordics Jan 2018 YES YES YES Q3 15 countries 100.000 resellers and EUR 8 billion revenue June 2018 No No N
Slide 7: Q2 Key figures
Q2 Key figures Q2 2018 Q1 2018 Q2 2017 H1 2018 H1 2017 (Amounts in NOK thousands, execpt EPS) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Revenue 5 383 5 496 2 346 10 879 3 204 Gross profit 2 107 2 267 160 4 374 (503) Gross margin 39 % 41 % 7% 40 % -16 % Loss before income tax (10 76
Slide 8: Strategy and operational update
Strategy and operational update Q2 2018, Oslo 16 August 2018
Slide 9: The market for Hiddn's products is rapidly growing
The market for Hiddn’s products is rapidly growing Several examples shows the data challenges we face … with clear implications… … driving the market Regulations stipulates that data directly and New indirectly related to individuals must be GDPR regulations encrypted (article 25 and 32) from 25 May
Slide 10: Bringing our unique and patented technology to volume production
Bringing our unique and patented technology from “prototyping level” and project sales to “volume production” Unique key handling Encryption solutions • Hiddn uses the same industry-leading encryption algorithm as most of its Hardware competitors – the Advanced Encryption Standard ("AES") with 256-b
Slide 11: Expanding market segments to high-volume markets
Expanding market segments to high-volume markets B2B Bespoke Solutions • High-end solutions for high-end customers • Validation of IP, but low volumes and margins B2B Made-to-Measure Solutions • High-end solutions, but not bespoke + OEM products • Partnerships driving volumes, lower unit costs B2C R
Slide 12: Expanding geographically in Europe and US/Canada through partners and distributors
Expanding geographically in Europe and US/Canada through partners and distributors Hiddn expansion plans USA/Canada (SecureData distribution Hiddn to enter USA/Canada as a provider of secure agreement) Nordics data storage solutions to high-end business- and (Power distribution government markets ag
Slide 13: Utilizing several channels and partners to penetrate all relevant customer segments
Utilizing several channels and partners to penetrate all relevant customer segments Production Sales, marketing and distribution Customer segments Prioritization Hiddn Direct project sales Military Develop OEM sales through tailored volume Government partnerships Police Offer OEM sales to volume PC
Slide 14: Expanding product range through partnerships
Expanding product range through partnerships Partnership to establish a new product range in collaboration with SecureData About SecureData Inc. and ClevX Products to be distributed in Europe and Specializes in data recovery and hardware the Middle East, addressing the B2B encrypted data storage sol
Slide 15: Strategic cooperation to secure product roadmap and cost efficient volume
Enters into strategic cooperation to secure product roadmap and cost efficient volume of Hiddn’s products Work with Swissbit to customise, optimise and test Hiddn’s encryption solutions to About Swissbit AG secure quality volume production and Leading manufacturer and supplier of further road-map in
Slide 16: Expanding sales and distribution capabilities in Europe through ALSO
Expanding sales and distribution capabilities in Europe through partnership with ALSO Allow distribution of Hiddn’s products and services to major, growing business About ALSO Holding AG and service markets in Europe Gaining access to ALSO’s distribution channels, and value added resellers Gaining a
Slide 17: Fujitsu to sell Hiddn solutions
Fujitsu to sell Hiddn solutions Fujitsu announced a GPDR proof security option for notebooks and PCs in a new About Fujitsu Ltd partnership with Hiddn Hiddn’s SafeDisk embedded Fujitsu’s PCs and notebooks with SafeDisk protect data in lost or stolen hardware devices 5th largest 14 million 100 Addres
Slide 18: First Hiddn products now available in Power stores
First Hiddn products now available in Power stores Power distributes Hiddn’s security products across the Nordic region About Power Hiddn’s new, competitive consumer Leading electronics retailer in the Nordics, product KryptoDisk1 is now available in with nation-wide store network and online selecte
Slide 19: Entering the growing high-end business market in the US and Canada
Entering the growing high-end business market in the US and Canada SecureData Inc. to distribute Hiddn’s high-end products in US and Canada Opening the North American market for volume sales of Hiddn’s high-end products Products to be branded and sold as Hiddn products Building on Hiddn’s relationsh
Slide 20: Summary/Outlook
Summary/ Outlook Q2 2018, Oslo 16 August 2018
Slide 21: The structure came in place during Q2; now preparing for sales and production increase
The structure came in place during Q2; now preparing for sales and production increase The overall market trend Stepping up production to meet demand supports an increased spending on hardware-based encryption storage solutions • Initial order distributed to Units selected Power stores • Commercial
Slide 22: Summary and outlook
Summary and outlook In the first half of 2018, Hiddn has delivered on its communicated strategy by expanding its product offering, improving production capabilities and opening distribution channels Presented Hiddn products to a broad audience at the CEBIT and InfoSecure conferences in June in Hanno
Slide 23: Q&A
Q&A www.hiddnsolutions.com
Slide 24: Appendix
Appendix
Slide 25: Income Statement
Income Statement 1.4-30.6 1.4-30.6 1.1-30.6 1.1-30.6 2018 2017 2018 2017 Amounts in NOK thousands NOTE (unaudited) (unaudited) (unaudited) (unaudited) Revenues 2 5 383 2 346 10 879 3 204 Other income - - - - Total revenue and other income 5 383 2 346 10 879 3 204 Cost of materials and services (3 27
Slide 26: Balance Sheet
Balance Sheet Pr. 30.6 Pr. 31.12 Pr. 30.6 Pr. 31.12 2018 2017 2018 2017 Amounts in NOK thousands NOTE (unaudited) (audited) Amounts in NOK thousands NOTE (unaudited) (audited) ASSETS EQUITY AND LIABILITIES Non-current assets Equity Property, plant, and equipment 214 279 Share capital 5 31 192 25 364