Slide 1: Senetas Corporation Limited 2019 Full Year Results
Senetas Corporation Limited 2019 Full Year Results – 26 August 2019 © 2019 Senetas Corporation Slide 1
Slide 2: FY2019 Highlights
FY2019 Highlights • Revenue of $21.3m – up 12.3% on FY2018 – well ahead of industry growth, driven by Increasing global awareness of cyber security concerns • Growth in both sales and maintenance revenue, with particularly good European sales • Revenue from Thales up 15.8% • Thales confirmed as Sene
Slide 3: Sales outlook improving
Sales outlook improving 100Gbps Encryptors Ongoing sales Expanding Senetas’s global momentum with distributor distribution partner growing sales relationships & post acquisition of pipeline sales capabilities Gemalto Encouraging customer engagement © 2019 Senetas Corporation Slide 3
Slide 4: R&D at the core of value creation
R&D AT THE CORE OF VALUE CREATION Hardware Virtual (Software) European Encryption Solutions Encryption Solutions certification New hardware Additional European encryptors with capabilities to certification for core transport layer conform with hardware products independence public cloud to broaden t
Slide 5: Key Financials
KEY FINANCIALS © 2019 Senetas Corporation Slide 5
Slide 6: FY2019 Key Financials
FY2019 Key Financials Full year ended 30 June 2019 ($000’s) FY2019 FY2018 Change Revenue from ordinary activities 21,313 18,971 12.3% Gross profit 16,694 15,414 8.3% Gross Margin % 78% 81% (3.7%) Other income 708 2,949 (76.0%) Profit before tax from ordinary activities 3,864 5,799 (33.4%) Writedown
Slide 7: Reconciliation to underlying operating profit
Reconciliation to underlying operating profit Full year ended 30 June 2019 ($000’s) FY2019 FY2018 Profit before tax 320 4,438 − Loss on fair value through profit or loss investment 1,893 1,362 − Share of loss of associate 1,651 - − Non-recurring legal and other expenses 919 - − R&D refund included i
Slide 8: Strong Balance Sheet With No Debt
Strong Balance Sheet With No Debt NET ASSETS $000’s CASH & CASH EQUIVALENTS $000’s 23,258 20,848 24,081 20,091 21,483 17,860 19,734 18,526 15,902 13,093 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 © 2019 Senetas Corporation Slide 8
Slide 9: Operational Update
OPERATIONAL UPDATE © 2019 Senetas Corporation Slide 9
Slide 10: Votiro Update
Votiro Update Proven Limited The task - build Materially technology competition in scale and enhances with customers CDR space global Senetas’s and revenue relevance product producing portfolio • Expands Senetas’s product portfolio into Content Disarm and Reconstruction (CDR) technology – a signific
Slide 11: Votiro Target Markets
Votiro Target Markets Expansion into the US market Building steady revenue growth • Geographical expansion to U.S. • Expand distributor relationships − Strategic sales opportunities and − New distribution relationships largest addressable market established in Japan, APAC and − Pursue pilot sales op
Slide 12: Acquisition of Gemalto by Thales
Acquisition of Gemalto by Thales • Thales completed its acquisition of Gemalto in April 2019 • Thales subsequently confirmed to continue as Senetas’s global exclusive distribution under Thales’ Digital Identity & Security division • Thales - #1 globally for data encryption and key management - over
Slide 13: SureDrop Update
SureDrop Update • Selling and marketing SureDrop across APAC region through 3 distribution partners • Signed a distribution agreement with Thales earlier this year – SureDrop officially launched as a new product to Thales customers in August 2019 – leads have already been encouraging • Integrated Su
Slide 14: Senetas Strategic Plan
Senetas Strategic Plan © 2019 Senetas Corporation Slide 14
Slide 15: Our Strategy
OUR STRATEGY “ To be recognised globally as a trusted provider of high-assurance security solutions. Protection without compromising systems’ performance or user experience. ” © 2018 Senetas Corporation Slide 15
Slide 16: Committed to protecting our customers' most valuable asset, their data
Committed to providing protecting our customers’ most valuable asset, their data! Network Host Application Data Data Lets take a closer look… © 2019 Senetas Corporation Slide 16
Slide 17: Investment focus in 4 key areas – driven by customer needs
Investment focus in 4 key areas – driven by customer needs Investment Areas Thought Products Technology Partnerships Leadership Value Created Broader Enhanced sales Serving addressable & distribution deeper market and through security customer customer-facing needs types partners © 2018 Senetas Corp
Slide 18: Leverage high-assurance security capabilities to build a robust security portfolio
Leverage high-assurance security capabilities to build a robust security portfolio Strong Engineering Growing Security Products & Service Portfolio Foundation Content Disarm & Reconstruction (CDR) Started from a technology market-leading position in high- Secure file sharing & assurance network sync
Slide 19: Broader product set meets more of our customers' security needs
Broader product set meets more of our customers’ security needs Technology area Enhancement Implications Expands ability to use encryption across a variety of Encryption for Layers 3/4 in Network protocols use cases including Private, Cloud, and SaaS addition to Layer 2 applications Allows access to
Slide 20: Enhanced market reach through global distribution partnership with Thales
Enhanced market reach and sales capability through global distribution partnership with Thales PRODUCT OTHER BRAND MARKET CAPABILITIES DEVELOPMENT SYNERGIES Global Serving Defense, 80,000 Integration of Co-branding Post Thales Government & Digital Security, employees Senetas and joint panel merger E
Slide 21: We continue to invest and lead through thoughtful innovation
We continue to invest and lead through thoughtful innovation and contribution to global standards Area Investments Implications Unique field programmable hardware capabilities allow to GOST, Quantum rapidly prototype and implement custom encryption Crypto Agility Cryptography algorithms and stay ahe
Slide 22: Detailed Financials
DETAILED FINANCIALS © 2019 Senetas Corporation Slide 22
Slide 23: Operating Revenue
Operating Revenue REVENUE BY REGION $000’s • Strong sales in the European market, ANZ Europe USA softer ANZ revenue • FY2019 total revenue 12.3% up on FY2018 21,313 18,971 18,920 17,591 15,90 7 13,214 12,235 10,018 14,910 11,175 60% Product sales revenue 5,321 6,030 4,391 2,980 1,711 1,752 2,294 2,2
Slide 24: Cash Flow
Cash Flow Full year ended 30 June 2019 ($000’s) FY2019 FY2018 Change Receipts from customers 23,781 19,739 20% Tax paid (679) (414) 64% Payments to suppliers & employees (17,547) (14,539) 21% Operating cash flows 5,865 5,201 13% Investing cash flows (7,208) (2,093) 244% Cash and cash equivalents at
Slide 25: Balance Sheet Remains Strong
Balance Sheet Remains Strong Full year ended 30 June 2019 ($000’s) FY2019 FY2018* Change Cash and cash equivalents 17,860 23,258 (23%) Trade and other receivables 5,056 6,529 (23%) Unlisted investment securities - 1,893 - Investment in Votiro 4,973 - - Total assets 33,359 35,968 (7%) Trade and other
Slide 26: Effect of AASB15
Effect of AASB15 • AASB15 applies to Senetas’s results for the first time in the period beginning FY2019 • This requires the company to estimate and recognise the revenue expected to be earned from customer contracts, rather than waiting for the actual end sale before recognising the revenue • The p
Slide 27: Impairment to Unlisted Investments
Impairment to Unlisted Investments • Senetas announced on 16 January 2019 that it expected to recognise an impairment to the carrying value of its investment in Smart Antenna Technologies Ltd (SAT) • Senetas holds a 5.52% interest that was initially acquired in Dec 2016 • The major shareholder and p
Slide 28: Disclaimer
Disclaimer 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 upon as a representation as t