Senetas Corporation Limited · ASX:SEN
Senetas — Investor Presentation (April 2005)
35 slides from Senetas's investor presentation, Apr 13, 2005
Slide 1: Senetas Investor Briefing cover letter
SEWETASGROUP SENETAS Corporation Limited MELBOURNE 13 April 2005 187 2 9868 A585 iG +81 9 9821 4899 Company Announcements Office SYDNEY ASX ¥ Level 6 20 Bridge Street SYDNEY NSW 2000 Dear Sirs, SENETAS INVESTOR BRIEFING We attach a presentation by the Directors of Senetas Corporation Limited. Yours
Slide 2: Senetas Corporation Ltd April 2005
PL Gs IN ___SENETASCORPORATIONLTD SS (ASX: SEN, SENOA = : —— | ——APRIL2005 :
Slide 3: Group structure: Solutions and Security Products
[As ir AGRON Compal Solutions Security Products * Dependable, growing revenue and earnings * Business intelligence,Enterprise Management and. Security consulting * Professional Services and Software Proprietary Security Product «Direct sales * License & royalty income from US distributor SafeNet (Na
Slide 4: Providing business intelligence and IT security solutions for years
- Providing Business Intelligence solutions to business and government for 15 years * Providing IT Security solutions to. business and government for 9 years — * Providing Enterprise Management solutions to business and government for | years — SS Track record of development and protection of Intell
Slide 5: The Solutions business
The Solutions business distributes, integrates, secures and maintains clients’ business information software. Two areas of specialist expertise: . (a) Business Performance Management (BPM) The groups BPM capabilities including Business Intelligence, Customer Relationship Management and Financial Sys
Slide 6: SafeNet distributes CTAM products in the US and beyond
. -SafeNet distributes CTAM products.in the US and beyond + Senetas distributes SafeNet products in Aust. & New Zealand . SafeEnterprise Security . Management Center HighAssurance ~ Gateways ~~. ag WD High Assurance Windows client
Slide 7: Customer list
* Telstra * Federal Police * National Australia ~ Bank © Toll Holdings * Shell Australia + Bunnings , ¢ Siemens - . . Vic Roads *RDNS~ * Village Road Show *. Linfox . . Bendigo Bank ¢ United Energy an * ANZ Bank * Centro Properties *ShellUK ce Coles Myer. * Cadbury Schweppes . -* Barwon Water. -sOPS
Slide 8: To be the dominant security solutions company in Australasia
To be the dominant security solutions company in the Australasian market 2A Continue strong double digit revenue and profit ~ growth ereeeanes : Increase returns to shareholders with sustainable dividends and growing value
Slide 9: Key drivers in the next months
Key Drivers in the next 12 months -.. Strong growth in SENETASGROUP Solutions - « Growth in Sydney and Canberra business to reach 60% of tota solutions revenue * Leveraging one service offering to another ° Expanding service in current large enterprise customers Strong growth in SENETASGROUP Securit
Slide 10: Gartner and IDC predictions for the IT market
Gartner. and IDC predications for the world-wide IT Market ° ‘Continued growth i in Business Intelligence driven. by: » Regulation * Unfinished ERP business * Need for better controls and metrics * Competitiveness * Growth of IT-security spend “Although spending decisions have been delayed, corporat
Slide 11: Expansion in NSW and Canberra
~Expansion i in NSW. and Canberra to. be 60% of. revenues 2. Growing services where our-partner IBMITivoli is growing in the market: - Storage - Security 3. Expand our service offerings we are currently active with: Network Appliances *. Senetas is.the provider of Network Appliance storage implement
Slide 12: Business intelligence market and service offerings
Large and growing market. Highly competitive, particularly in major corporate as they have long term existing large partner. relationships Our-services cover: - Large data warehouse projects | ~ Hyperion software and services projects _ - Balanced Scorecard applications Our target is to win addition
Slide 13: CTAM product family CypherNET
CTAM product family CypherNET has longevity and will produce substantial royalties & licence fees ATM market SafeNet sells 400 ATM encryptors per annum —these will be replaced by CypherNET in current quarter SONET/SDH market “CypherNET SONET” product just released into the market. Market much.larger
Slide 14: Management team
Francis Galbally as CEO heads the Senetas Group. Francis previously practiced as a lawyer specialising “in corporate, commercial and taxation law.. Since leaving the law for-business more than ten years ago, Francis has had extensive experience in the finance, property and IT industries. ‘He is resp
Slide 15: Positioned for profitable growth
SENETASGROUP i is now positioned for profitable growth and substantial market interest: (a) Actual Profit HY 04/05 in excess of $3.5 million (b)E arnings before tax FY 04/05 projected to be in. excess of $7 million (c) Strong sales and earnings growth in core businesses (d) Opening of large new mark
Slide 16: Revenue, EBIT and cash summary
Creditors 0°... Operating Revenue EBIT : : Cash- Debtors Full Year: Full Year - First Half. . 2002/3 =. 2003/4 2004/5 »~ ~ $13.0m $14.7m— $12m - $(4.4)m* $.4.0m_ $3.5 : $ 1.7m $ 3.1m $6.5m $2.4 m $ 3.9m $5.0.m $2.5m_ $2.5m $2.6m_ * write-off VC investments, corporate restructure and write-off goodwi
Slide 17: Assets and liabilities
Assets . . Cash assets Receivables (current) : Property, plant and equipment «>. “Intangibles . Deferred Tax asset . Other assets -> Total assets : a Liabilities : Payables . oe Other liabilities Total liabilities Net assets 6,524,434 “3,104,069 5,050,740. 4,228,089 441,653 366,622. 8,351,887, 8,276
Slide 18: Share price performance and capital structure
Shareprice Performance 5c to.40c.over last 8 months Capital structure Shareholders: 5,038 Top. 40 Shareholders hold 36.9% Market Cap over $110 m Liquidity statistics 2003 ~ 2004 Avg buy/sell spread B.B%-~ 2.8% Annual turnover 58% 254% Current Capital structure: Ordinary shares 8 cent Listed Options
Slide 19: Sustainable year on year growth
Sustainable year on year growth driven by.an increased take-up of security products. particularly. in the increasingly regulated industries such as banking and finance es Say os Earnings before tax for the full year will be in. oo excess of $7 million. Because of tax consolidation sos rules earnings
Slide 20: Recruitment and pending orders
Recruiting 10 more consultants in Professional Services & Security storage Beefing up Engineering. to meet demand from SafeNet a — 50% of world security market is US - But we are seeing emerging markets ‘New, large order pending from Australian Government Revenue Authority Continued follow-on order
Slide 21: Senetas Security: An Overview
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Slide 23: Encryption definition
Definition -~..To alter information using a secret code so as to be unintelligible to unauthorized parties . ~The translation of information into a secret code. Encryption i is.the most effective way to. achieve information security. To reac an encrypted file, you must have access to a secret key or
Slide 24: Compliance and market drivers
Compliance with regulations such as SarbOx, HIPAA, GLB, Global Privacy Legislation . Increasing availability of high speed infrastructure including hardware and fibre ~.« Cryptographic Modernisation. . ° Availability of global government funds. due to the heightened security posture : 7 Freedom come
Slide 25: The result of the merger between SafeNet and Rainbow
. The result of the merger between SafeNet and Rainbow #1 Provider of Sensitive But Unclassified (SBU) security infrastructure into the US Federal Government : #4 Provider of high assurance T1 & satellite link encryption (75% market share) - ; #4 Provider worldwide of external Frame Relay, ATM & Lin
Slide 26: SafeNet organic revenue growth
Average annual organic. revenue growth: 43% Total revenue CAGR: 144% Total EPS CAGR: 236% . $1.35 $205MM
Slide 27: Securing information and communications
ajo ion tions , both Senetas and security communica ing to secure informat build government, military and m ped much of the ience prises ions SafeNet have develo | enter g solut ts for foundation technology for encryption, commercia authentication and secure produc Creatin With years of exper
Slide 28: SafeNet licenses Senetas technology
SafeNet licenses Senetas technology for use in the rest -of the world en Senetas represents SafeNet i in ANZ for Distribution of. — Type 1 systems = ODS ~--= High Assurance Gateways (IPSec). oe - oe — IPSec Clients a ~.. = SSL-Gateways ~.— Identity Management solutions — Security Policy Management S
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Slide 30: SafeNet forecasts and Senetas growth plans
SafeNet has achieved US $200M in 2004 and has forecast ‘US$275m in 2005 at greater than 40% CAGR. We plan to grow at conservatively 30% CAGR ANZ represents approx 4% of US market Revenue from CTAM product and SafeNet product sales in local ANZ market is planned to be $7 Million for 2006FY Revenue.fr
Slide 31: Regulated industry and government focus
Regulated Industry, Government, Security Focussed. “Organisations e.g. Finance and Banking ‘Strong installed base for CTAM products — AFP 7 — AustralianDefence. aie 2 out 4 large banks nates —. Middle Eastern Defence : Large Australian Government Departments .. - - Strong Installed Base for SafeNet
Slide 32: Slide 32
Slide 33: All primary modes of communication
All Primary Modes of Communication _ * Backbone and Edge (WAN and LAN) ~ ° - Layer 2, 3 & 4 Communications - Encryption ¢ Wired and Wireless Remote Access All Primary Modes of Security - Unclassified, Sensitive and Classified Data Protection oe * Protection of Certificates and Keys » « Encryption Ha
Slide 34: Multifactor authentication and credential management
MULTEFACTOR AHORTION WANAGEHENT. MANAGEMENT CREDENTIAL SEH
Slide 35: SafeEnterprise product range
2 Single Sign- - _ HighAssurance VPN SW / SafeEnterprise SSL iGate we Security Management SafeEnterprise 4 Luna PCx