Verimatrix SA · EURONEXT:VMX
Verimatrix SA — Investor Day (March 2022)
51 slides from Verimatrix SA's investor day presentation, Mar 10, 2022
Slide 1: Investors Presentation Strategy Plan 2022-2025
INVESTORS PRESENTATION STRATEGY PLAN 2022-2025 Amedeo D’Angelo, Chairman & CEO Asaf Ashkenazi, COO Jean-François Labadie, CFO March 2022
Slide 2: Disclaimer
Disclaimer This document was prepared by Verimatrix and is provided for information No statement in this presentation is intended as a profit forecast or estimate for any purposes only. It is public information only. period. Persons receiving this document may not and should not rely on forward look
Slide 3: Leadership
Leadership Amedeo D’Angelo Asaf Ashkenazi Jean-François Labadie Chairman & CEO since 2015 COO since July 2021 CFO since Nov. 2021 30 years holding C-Suite position in the field Formerly Group Strategy Director - leading the 20 years of Experience at Quadient (formely of security, payment and semicon
Slide 4: Two leaders joining to become a cybersecurity powerhouse
Two leaders joining to become 2019-2021 a cybersecurity powerhouse 2007-2019 A NEW LEADER BORN 1995-2005 Integration between Verimatrix and Inside secure in 2019 SCALE-UP WITH INNOVATION R&D investment : 25% of revenue. App Shield Launch: Industry’s first 2 COMPANIES LAUNCHED NFC Chip MicroR
Slide 5: Verimatrix's main assets
Verimatrix’s main assets 800+ 320 GARTNER Customers in 120 countries Employees, 8 global offices RECOGNIZED In-App Protection, 2019–2022 CYBERSECURITY 500M+ 25 BREAKTHROUGH AWARDS App clients across devices Years of security innovation Automotive Cybersecurity Solution of the Year 2021 2021 INFORMA
Slide 6: Verimatrix, a global cybersecurity player
Verimatrix a global cybersecurity player SALES TEAM R&D TEAM 72 FTE 128 FTE USAs Canada* France Philippines Korea San Diego Paris Shanghai (Headquarter) (Sales) Brazil Colombia* UK Germany Amsterdam India Singapore (Sales and Pre-sales engineers) Argentina* Mexico* Sweden Norway Munich Japan Vietnam
Slide 7: 2 global business lines
2 global business lines protecting an unprotected digital world ANTI PIRACY THREAT DEFENSE PROTECT VALUABLE CONTENTS PROTECT APPS AND IOT Protecting content for Pay TV Extended threat defense software from the devices to the enterprise 7
Slide 8: Two successful business lines
Two successful business lines Anti-Piracy Threat Defense Protecting the revenue of media Verimatrix threat defense products distributors, from TV operators, to OTT protects today’s modern enterprise from service providers, from live and VoD, to risks originating from unmanaged devices innovative eSp
Slide 9: Anti-Piracy Portfolio
“Anti-Piracy” Portfolio ANTI-PIRACY from Conditional Access product to cutting edge Streamkeeper solution DIGITAL WORLD Streaming media Telcos & Pay TV ANTI-PIRACY VCAS Multi-DRM Streamkeeper Broadcasting Payments & financial Watermarking HDCP/DTCP Phone & IoT devise apps ENTERPRISE Securing premium
Slide 10: Protecting Digital Applications and Connected Devices
Protecting Digital Applications and Connected Devices THREAT DEFENSE DIGITAL WORLD Streaming media Telcos & Pay TV Broadcasting Payments & financial Code Shield App Shield Phone & IoT devise apps ENTERPRISE Keyless entry & ignition Autonomous driving THREAT DEFENSE Key Shield Mobile Payment Healthca
Slide 11: Wide spectrum of customers
Wide spectrum of customers 11
Slide 12: Cybersecurity is the major concern for C-suite executives
Cybersecurity is the major concern for C-suite executives WEF, Global Risks Report 2022 “ By 2025, up to 60% of companies will use cybersecurity risk management as a primary determinant in conducting business transactions ” Gartner 2022 12
Slide 13: Verimatrix targets growing submarkets
Verimatrix targets 2 growing submarkets among the 9 tech categories* shaping the future of cybersecurity THREAT DEFENSE ANTI PIRACY Application Cloud Content & Identity Infrastructure Integrated Network B2C Consumer Other Security Security Security data Security Access protection Risk Security softw
Slide 14: Our business lines are supported by market drivers (1/2)
Our 2 business lines are supported by 2 market drivers (1/2) 1 STREAMING SERVICES INCREASE THE LOST REVENUES FROM PIRACY Source: Digital TV Research, Anozrway 2022 14
Slide 15: Our business lines are supported by market drivers (2/2)
Our 2 business lines are supported by 2 market drivers (2/2) 2 33 BILLION CONNECTED DEVICES EXPECTED BY 2026 THROUGH 15% CAGR Billion of devices 35 32.7 30 +15% 28.5 24.6 IoT devices are expected 25 21.5 to grow at 32% p.a., 20 18.7 reaching 1.9B in 2021 16.3 14.3 15 Over 25% of identified attac
Slide 16: Our ambition for 2025
Our ambition for 2025 PROTECT CONTENT FROM PIRACY AND DEFEND THE ENTERPRISE FROM UNMANAGED DEVICES ANTI PIRACY THREAT DEFENSE Become N°1 in Leverage our position protecting video in IOT and Apps protection for the streaming market to extend into entreprise’s endpoints protection market FINANCIAL TAR
Slide 17: Offer & Technologies
OFFER & TECHNOLOGIES 17
Slide 18: 24 years of security leadership, 50+ awards
24 years of security leadership, 50+ awards ANTI PIRACY THREAT DEFENSE 18
Slide 19: The R&D teams is well recognized for its strong expertise
The R&D teams is well recognized for its strong expertise 128 FTE in R&D located in 3 expertise centers (America, Europe, Asia) 4 more members hold a PhD in cryptographical Mathematics and Neurosciences. Developed and patented, a cryptographic procedure to protect keys in the first smart card le
Slide 20: Two successful business lines
Two successful business lines Anti-Piracy Threat Defense Verimatrix protects valuable revenue Verimatrix’s threat defense products and streams of media distributors, from TV services close the open door in current operators, to OTT service providers, from security walls by monitoring unmanaged live
Slide 21: Anti-Piracy
ANTI-PIRACY 21
Slide 22: We are living in the golden age of streaming
“We are living in “We are also living the golden age in the golden age of streaming” of piracy” “Never before have we seen such fast-growing scale and sophistication of piracy” 22
Slide 23: Video consumption has evolved
Video consumption has evolved TRADITIONAL Pay TV MODEL GLOBAL $73B OTT MARKET BY 2023* 23 *Source: PwC Global Entertainment & Media Outlook 2019-2023 report, 2023e
Slide 24: Piracy & threats have also evolved
Piracy & threats have also evolved Pirated Ads Password DDoS VoD hijacking stuffing extortion 24
Slide 25: Video content is being pirated at scale
Video content is being pirated at scale 6-12% 80% 51% of ALL video of global online of sports fans that distribution piracy is attributed owns a service watch traffic is pirated to illegal streaming pirate streams not content services available by their according to Caretta Research + according to t
Slide 26: Financial impact of piracy
Financial impact of piracy ~$55B $28.3B 20% Annual global movie Annual sports rights Revenue loss of video industry’s revenue losses losses from digital content publishers from digital piracy piracy according to Streaming Media ^ according to according to Global Innovation Policy Center (GIPC) + Amp
Slide 27: Streamkeeper
ANTI PIRACY Streamkeeper battle-ready cybersecurity engineered to hunt down & take out video piracy Multi-DRM Counterspy App Anti-Piracy Telemetry with Edge Authenticator Shutdown Watermarking 27
Slide 28: Anti-Piracy: What Others Do
ANTI PIRACY Anti-Piracy: What Others Do pirate business model not fully disrupted EXISTING SOLUTIONS Leak Detected Legal Take After Within 30 Min Down Notice 24 Hours Stream Removed OTT Stream Broadcast Leaked Championship Piracy League 28
Slide 29: Anti-Piracy: Verimatrix vs. Others
ANTI PIRACY Anti-Piracy: Verimatrix vs. Others Streamkeeper is a huge leap forward in stopping video piracy EXISTING SOLUTIONS Leak Detected Legal Take After Within 30 Min Down Notice 24 Hours Stream Removed OTT Stream Broadcast Leaked Championship Piracy Source of Stream Shut Down League Leak Detec
Slide 30: Protecting Live Streaming Sports Revenue
ANTI-PIRACY Protecting Live Streaming Sports Revenue with Verimatrix Streamkeeper DRM and Watermarking Mola.tv, a popular Indonesian OTT broadcaster, wanted to safeguard and better monetize live sports content licensed from around the world. Looking for a highly scalable SaaS solution that would off
Slide 31: Verimatrix Anti-Piracy Customers
ANTI PIRACY Verimatrix Anti-Piracy Customers 31
Slide 32: Threat Defense
THREAT DEFENSE lij:l Verimatrix
Slide 33: Threat defense is a response to boom in cyber attacks
“Threat defense” is a response to boom in cyber attacks THREAT DEFENSE Solarwinds Attack Colonial Pipeline Attack $90M 15M Barrels of Gasoline Direct Damage Halted for 6 Days JBS Attack 2021 T-mobile Attack $11M 47M Users’ Ransom Paid Personal Data Exposed 33
Slide 34: Explosion of Apps & Connected Devices
Explosion of Apps & Connected Devices Has rapidly expanded the threat surface -- and increased risks to the enterprise 3X 6M 75% CONNECTED DEVICES APPS ON OF ALL APPS & DEVICES THAN PEOPLE BY 2023 GOOGLE PLAY & UNPROTECTED APPLE APP STORE 34
Slide 35: Blindspot: Connected Apps & Unmanaged Devices
Blindspot: Connected Apps & Unmanaged Devices THREAT DEFENSE On-Device Device Remote Behavioral Number of Security Visibility & Control Analysis Devices Managed Devices SMALL BYOD MED LG Unmanaged Devices Connected Apps XL 35
Slide 36: Conventional Security Doesn't Always Work
Conventional Security Doesn’t Always Work THREAT DEFENSE Conventional Security Application Device type allowed? Server Allowed Compromised Protocol? App Normal Behavior? Device is Compromised Device Whitelisted & Approved Emulated Device 36
Slide 37: Solution: Protected Apps and Devices with Verimatrix
Solution: Protected Apps and Devices with Verimatrix THREAT DEFENSE On-Device Device Remote Behavioral Number of Security Visibility & Control Analysis Devices Managed Devices SMALL BYOD MED LG Unmanaged Devices Connected Apps XL 37
Slide 38: Verimatrix Threat Defense Service
Verimatrix Threat Defense Service Protect your bottom line with cybersecurity countermeasures to stop the bad guys from hijacking your apps, APIs and devices. • Extend threat defense to the new endpoint • Shield apps and services with DDoS protection • Monitor threat matrix to gauge risk/response •
Slide 39: A unique competitive positioning
A unique competitive positioning THREAT DEFENSE at the Intersection of 3 Critical Security Sectors Application Security Device Security EDR (Endpoint Detection & Response) 39
Slide 40: Protect Fintech Apps
THREAT DEFENSE Protect Fintech Apps with Verimatrix App Shield Albo, one of the top 10 fintech companies in Mexico, launched the latest version of its new mobile neo bank app using Verimatrix App Shield to ensure both its iOS and Android versions were safeguarded against cyber attacks. Pain Points B
Slide 41: Secure Valuable IP
THREAT DEFENSE Secure Valuable IP with Verimatrix Code Shield SSIMWAVE, an EMMY Award winning video experience automation company based in Canada, looks to reduce hacker attacks against their platform to protect valuable intellectual propery and code. Pain Points Benefits Online platforms are prime
Slide 42: Verimatrix XTD Customers
THREAT DEFENSE Verimatrix XTD Customers 42
Slide 43: Verimatrix Secure Delivery Platform
ANTI-PIRACY + THREAT DEFENSE Verimatrix Secure Delivery Platform Anti-Piracy + Threat Defense in a single user interface 43
Slide 44: Development Strategy
DEVELOPMENT. STRATEGY. _ ‘i —— a
Slide 45: Our vision
Our vision Market challenges Verimatrix statement 12.5B$ Lost Revenue Capitalize on video security from Streaming Piracy expertise whom usage is shifting from TV to mobile device 75% of Apps Are Unprotected Continue to secure and enable the connected future : 3x More Connected content and devices De
Slide 46: Verimatrix strategy
Verimatrix strategy deliver business growth and recurrent revenues ANTI PIRACY THREAT DEFENSE Key levers Gain market share on video Support market demand conditional access Expand our presence in to deliver business verticals like bank, health growth Grow in streaming and OTT and automotive segment
Slide 47: ARR will grow supported by SaaS and subscription business model
ARR will grow supported by SaaS and subscription business model CAGR in ARR ARR breakdown expected above 30% (percentage) +70% $26.8M >70% 2021 2025 2021 2025 ARR SaaS+Subsc ARR Maintenance 47
Slide 48: Business model transformation is accelerating
Business model transformation is accelerating Split of revenues over the years Total Recurring Revenue will increase over the years % of the annual revenues And will represent more than70% of total revenue by the end 2025 Licence (including Royalties) >70% >70% SaaS 35% & 35% Maintenance 2021 2025 2
Slide 49: Revenue evolution regarding transformation journey
Revenue evolution regarding transformation journey Revenue evolution (Recurring / Non-Recurring) CAGR in ARR expected above 30% >100 71.8 $26.8M 2021 2025 2021 2022 2023 2024 2025 The change of the business model will deliver a Recurring Revenue Non Recurring Revenue sustainable and profitable growt
Slide 50: Why invest in Verimatrix now?
Why invest in Verimatrix now ? • Verimatrix is a technology company well positioned in the high demand cybersecurity market: +15% market growth in both segments generating company growth • With 25 years of innovation, Verimatrix's two product lines are recognized as leaders in their market segment.
Slide 51: Investor Information
INVESTOR INFORMATION Investor relations CFO finance@verimatrix.com Media Contact Matthew Zintel communication@verimatrix.com Financial Calendar Q1 2022 Revenue: April 28, 2022 (after market) Visit: https://investors.verimatrix.com/