Senetas Corporation Limited · ASX:SEN
Senetas — H1 FY2020 Earnings Presentation
26 slides from Senetas's earnings presentation, Feb 28, 2020
Slide 1: 2020 Half Year Results
For personal use only Senetas Corporation Limited 2020 Half Year Results – 28 February 2020 © 2020 Senetas Corporation Slide 1
Slide 2: HY2020 Group Highlights
HY2020 Group Highlights For personal use only • Revenue of $10.6 million – up 7.5% on HY2019 − Final tranche of Votiro investment was made in January 2020 – this increased Senetas’s interest in Votiro to approximately 60% − Group revenue includes 2 months of revenue from Votiro for November and Dece
Slide 3: HY2020 Highlights – Senetas
HY2020 Highlights – Senetas For personal use only • Strong momentum in Europe revenue from FY2019 has continued into HY2020 • Growth in 100Gbps sales continues as customers upgrade to 100Gbps networks • Recurring maintenance revenue was 49% of revenue for the Senetas business • Gross margin expansio
Slide 4: HY2020 Highlights – Votiro
HY2020 Highlights – Votiro For personal use only • Strong growth in revenue driven primarily by Japan and North American markets • Good progress towards cash flow break-even • Global sales and marketing capability established • North American sales team fully onboarded • Closed first significant sal
Slide 5: Key Financials
KEY FINANCIALS For personal use only © 2020 Senetas Corporation Slide 5
Slide 6: HY2020 Key Financials
HY2020 Key Financials Half year ended 31 December 2019 ($000’s) HY2020* HY2019 Change For personal use only Revenue from ordinary activities 10,601 9,862 7.5% Gross profit 9,008 7,494 20.2% Gross Margin % 85% 76% 9pts Other income 324 303 6.9% Share of loss of an associate* (1,234) (324) - Profit (l
Slide 7: Senetas operating segment results
Senetas operating segment results Half year ended 31 December 2019 ($000’s) HY2020 HY2019 For personal use only Revenue from ordinary activities 9,524 9,862 Gross profit 8,027 7,494 Gross Margin % 84% 76% Other income 324 303 Profit (loss) before tax 103 (799) Adjustments to calculate underlying Sen
Slide 8: Strong Balance Sheet With No Debt
Strong Balance Sheet With No Debt For personal use only NET ASSETS $'000s CASH & CASH EQUIVALENTS $'000s 23,258 20,848 24,081 20,091 21,483 17,860 19,734 18,526 17,561 14,532 FY16 FY17 FY18 FY19 HY20 FY16 FY17 FY18 FY19 HY20 Since FY2018 Senetas has returned $4.5 million to shareholders via dividend
Slide 9: Operational Update
OPERATIONAL UPDATE For personal use only © 2020 Senetas Corporation Slide 9
Slide 10: Senetas
Senetas For personal use only • 100Gbps encryptor sales growth as customers adopt the new technology – offset by moderation in sales of 10Gbps encryptors • Development of transport layer independence (Layers 2,3 & 4) capabilities for Senetas hardware encryptors completed – new products to be launche
Slide 11: Senetas – R&D
Senetas – R&D For personal use only • Partnerships with Thales & ADVA provide opportunities for technical development, customer trials and ongoing product enhancements Virtualised • Market has been slow to adopt SDN technology, however, customer encryption interest is strong and we continue to see g
Slide 12: Acquisition of Gemalto by Thales
Acquisition of Gemalto by Thales For personal use only • Thales completed its acquisition of Gemalto in April 2019 • Thales subsequently confirmed it would continue as Senetas’s global exclusive distribution under Thales’ Digital Identity & Security division • As expected, there was some minor sales
Slide 13: Votiro
Votiro For personal use only • Japan, North America & APAC represent the key growth markets for focus in the near term Target Markets • North America is expected to become the Votiro’s largest market within 12-18 months • Continuing to build business capability across all key regions Business • Tech
Slide 14: Votiro's CDR Technology
VOTIRO’S CDR TECHNOLOGY For personal use only © 2020 Senetas Corporation Slide 14
Slide 15: Company history
Company history • Votiro reinvented Content Disarming & Reconstruction (CDR) as a For personal use only cyber threat prevention against content-born attacks, establishing a • Founded in Israel in 2012; Secure File Gateway category first product shipped in 2014 • Votiro has a proven prevention rate o
Slide 16: Votiro Secure File Gateway Platform
Votiro Secure File Gateway Platform At a glance... For personal use only Delivering Safe Content in Milliseconds Documents & files are a business 1 2 3 4 necessity • They enter through Analyse Reconstruct Test Deliver many sources – Web • Disassemble • Reconstruct a • Automated • Deliver in into obj
Slide 17: What was CDR supposed to do?
What was CDR supposed to do? For personal use only Objective: Threat Prevention • Cyber threats that aren’t prevented get into the network. They result in compromise and cost, sometimes staggering cost. • All threat prevention requires that the threats be found—identified—before they get into the ne
Slide 18: Solution: positive selection succeeding where CDR didn't
Solution: positive selection succeeding where CDR didn’t Votiro’s Newly Developed Technologies that: For personal use only Reconstruct new, known-safe content… In original formatting… Ready for safe business operations… Without having to find, alter, or remove malware hidden in the original content
Slide 19: Aligned with major cyber market drivers
Aligned with major cyber market drivers For personal use only The cyber threat problem is global and unrelenting. The Prevents the Full most virulent malware, like ransomware and zero-day is Stops losses due to Spectrum of Content- hidden in files. In addition, the sheer volume of known content-born
Slide 20: Customer use examples
Customer use examples Customer Use Votiro’s Edge For personal use only • Secure upload portal for consumer • Fastest Content Reconstruction in the Large US Financial loans market Services Company • 3,000 applications/hour • $6.4B in loans • Scalable • 300,000 Users • Rapid Integration through API La
Slide 21: Votiro growth strategy – 2020
Votiro growth strategy – 2020 For personal use only © 2020 Senetas Corporation Slide 21
Slide 22: Detailed Financials
DETAILED FINANCIALS For personal use only © 2020 Senetas Corporation Slide 22
Slide 23: Operating Revenue
Operating Revenue For personal use only Revenue by region 21,313 18,920 17,591 18,971 • Stronger European revenue momentum in FY2019 continued into HY2020 • Asia Pacific revenue growth reflects increased 10,601 Senetas encryption business revenue and the Nov/Dec 2019 Votiro revenue included • Increa
Slide 24: Cash Flow
Cash Flow For personal use only Half year ended 31 December 2019 ($000’s) HY2020* HY2019 Change Receipts from customers 9,034 8,550 6% Tax paid (585) (487) 20% Payments to suppliers & employees (10,071) (8,519) 18% Operating cash flows (1,513) (206) - Investing cash flows (1,164) (6,389) - Cash and
Slide 25: Balance Sheet Remains Strong
Balance Sheet Remains Strong For personal use only Half year ended 31 December 2019 ($000’s) HY2020* FY2019 Change Cash and cash equivalents 14,532 17,860 (19%) Trade and other receivables 4,231 5,056 (16%) Inventories 2,076 2,425 (14%) Investment in Votiro - 4,973 - Goodwill (provisional) 7,958 196
Slide 26: 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