Clavister Ab · OMXSTO:CLAV
Clavister Ab — Investor Day (June 2021)
41 slides from Clavister Ab's investor day presentation, Jun 16, 2021
Slide 1: Capital Markets Day June 16, 2021
CAPITAL MARKETS DAY June 16, 2021
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements. Such statements are based on our best assessment at the time of the presentation and are subject to risks and uncertainties that could materially affect our business and results. Clavister expressly disclaim a duty to provide updat
Slide 3: Contents
Contents • Clavister at a Glance • Market Update • Strategic Direction • Financial Perspective
Slide 4: Clavister at a Glance
Clavister at a Glance What We Do Carrier-grade cybersecurity solutions, made in the EU, for mission-critical 20+ 130,000 applications Years of Swedish Product Deployments Innovation World-Wide 85+% 50+% Gross Margin Recurring Revenue
Slide 5: Clavister Aurora Security Framework
Clavister Aurora Security Framework Industry’s most comprehensive and versatile 40+ Cybersecurity Designed and implemented in Sweden cybersecurity platform use cases Security from the User to the Cloud 60+ ICON? MEUR of R&D investments to date
Slide 6: Clavister Use Case Overview
Clavister Clavister Use Case Overview 05| Datacenter 03| Vehicle a “ — a “ 04| Site =) a 4 & < beg ewe. . y . a a 06 w “ 06 | Network NN a
Slide 7: Clavister Solution Set
Next-Generation Firewall Secure SASE SD-WAN Clavister Solution Set Clavister Aurora Security Framework Identity & Cyber Access Armor Management 5G Security
Slide 8: Team
Team Executive Management Board of Directors John Vestberg David Nordström Viktor Kovacs Jan Frykhammar Co-founder, CFO Chairman of the Board Member President & CEO Board Przemek Sienkiewicz Nils Undén Staffan Dahlström Kimberly Matenchuk Chief Commercial CTO Board Member Board Member Officer Johan
Slide 9: Market Trends
Clavister Kew Wa “zo Cw na =e
Slide 10: Global Cybersecurity Market
Global Cybersecurity Market “Global cybersecurity spend is anticipated to grow to USD 418 Billion by 2028, at an annual growth rate of 12.5% between 2020 and 2028.” “In 2021, cybercrime damages might reach USD 6 trillion — what would be (BUSD) 450 418 equivalent to the GDP of the world’s 400 383 339
Slide 11: Macro Trends Relevant to Clavister
Macro Trends Relevant to Clavister 5G The digitalization Increased Rapid adoption Cybersecurity Accelerating Increased geo- trend drives regulations, e.g. of 5G - is growing Cloud political tension strong demand on EU Cybersecurity explosive growth in complexity Services with the EU lacking identity
Slide 12: Strategic Direction
S T R AT E G I C DIRECTION
Slide 13: Key Pillars In Our Growth Strategy
Key Pillars In Our Growth Strategy We have a clear growth strategy and are well-positioned to expand in our selected markets 1 2 3 4 5 Industry Clavister Solution- Recurring M&A Focus SASE oriented Revenue Sales
Slide 14: Industry Focus
Industry Focus • Implementing a targeted industry focus through verticalization • Building critical mass to accelerate growth within selected customer verticals • A natural continuation of a focused journey which Clavister started in 2018 • From 2021 Clavister is focusing on three key industries: EU
Slide 15: EU Public Administration
ennai seniehilll heel r= e \" alo fe ham | EU PUBLIC ADMINISTRATION —————— da TT TTT a af —- = | =. =
Slide 16: EU Public Administration – Investment Drivers and Market
EU Public Administration – Investment Drivers and Market Key Trends and Investment Drivers EU Public Admin Cybersecurity Spend 2019 – 2023 (BUSD) • Digitalization of government services – accelerated by COVID-19 20 17 18 15 16 • Implementation of cybersecurity laws and regulations; NIS 13 Directive
Slide 17: Public Administration – Clavister Key Values
Public Administration – Clavister Key Values Government The natural True European Track record Transformation partner Cybersecurity • Trusted by nation- • Understands the connectivity • The only European wide, regional and local and identity management vendor that can deliver the government customer
Slide 18: Service Providers
' Wa SERVICE PROVIDERS
Slide 19: Service Providers – Investment Drivers and Market
Service Providers – Investment Drivers and Market Key Trends and Investment Drivers Managed Security Services Market 2019 – 2023 (BUSD) • Ever-increasing complexity of cybersecurity drives strong trend of out-sourcing security 50 44 46 to service providers 40 40 34 37 • Rapid adoption of 5G drives c
Slide 20: Service Providers - Clavister Key Values
Service Providers - Clavister Key Values Carrier-Proven A Partner Continuous Capability for Cybersecurity Innovation • Trusted by several CSPs • Solid experience of working • Investing above industry and MSSPs across the close with network equipment benchmarks to support globe, with products in prov
Slide 21: Service Providers – Case Study with Nokia
Service Providers – Case Study with • Nokia is differentiating themselves through a comprehensive security offering to mobile operators and enterprises • With the adoption of 5G, cybersecurity has to be designed-in, as opposed to a bolted-on afterthought • With more bandwidth and more use cases, dat
Slide 22: Service Providers – Case Study with Telco Systems
Service Providers – Case Study with • Telco Systems, part of BATM Advanced Communications, is a leader in network communication solutions • Telco Systems provides solutions for current carrier ethernet networks, as well as the latest NFV network architectures to multiple verticals, including 5G, IoT
Slide 23: Defense
Sa DEFENSE
Slide 24: Defense – Investment Drivers and Market
Defense – Investment Drivers and Market Key Trends and Investment Drivers Global Defense Cybersecurity Spending, 2019 – 2023 (BUSD) • Modernization programs, cloud migration and battlefield IoT 14 12 • Regulation and policies on improving cyber controls. Examples 12 11 10 10 include C2C (Comply to C
Slide 25: Defense – Clavister Key Values
Defense – Clavister Key Values Defense Proven A Partner to the High Levels of Performance Capability Defense Community meeting Industry Requirements • Trusted by governments, • Significant experience of • Delivering security products and delivering carrier grade, high complex project management, ser
Slide 26: Defense – Case Study with BAE Systems
Defense – Case Study with • BAE Systems is Europe’s largest and the world’s third largest Battle Command Systems defense contractor. Subsidiary BAE Systems Hägglunds produces Video Cameras and Sights Sensors Communication Systems vehicle systems for military and civil applications Weapon Firing Comp
Slide 27: Defense – Go-to-Market Model
Defense – Go-to-Market Model DESIGN WINS AND DEFENSE PROGRAMS INTEGRATIONS Western European Army 50 MSEK Contract (90 MSEK potential) DEFENSE OEMs AND SYSTEM INTEGRATORS Prospect OEM Contract for CV90 / BvS10 Integration Prospect ? Prospect Other Vehicle Systems Prospect Prospect PoC for 1,500 Emplo
Slide 28: Clavister SASE
Clavister SASE What is SASE (Secure Access Service Edge)? • Launching Clavister SASE solution in H2 2021 • Initial target group is public administration customers in Sweden, then scaling to Nordics and later to Europe SASE is the convergence of • Solution also packaged for OEMs and Service Providers
Slide 29: Clavister SASE – Our IPR Advantage
Clavister SASE – Our IPR Advantage Licensed Technology Buy/Build/Partner User & Device Directory Behavior Detection Engine Zero Trust Policy Rule Set Service Policy Engine Data Leakage Prevention (DLP) and Cloud Access Security Broker (CASB) functions IAM federation Advanced Threat Protection (ATP)
Slide 30: Solution-oriented Sales
Solution-oriented Sales • Elements of Clavister product portfolio combined into pre-defined solutions to address specific industry challenges Elastic Secure Identity & Access • Part of an overall transition journey from product selling SD-WAN Management to value added solution selling • Reflected in
Slide 31: Consolidating to Recurring Revenue Model
Consolidating to Recurring Revenue Model • Historically, products have been sold primarily on a perpetual license model Perpetual with subscriptions Term-based and • Within the portfolio, multiple products were sold on As-a-Service multiple different pricing models Term-based Revenues licensing (100
Slide 32: Successfully Transitioning to a Recurring Revenue Model
Successfully Transitioning to a Recurring Revenue Model 5 100% 8 17 16 90% 80% 70% 30 40 60% 64 55 50% 40% 30% 54 42 20% 31 37 10% 0% 2017 2018 2019 2020 Consoluting service Products and license of a non-recurning nature Recurring revenue We started the transition in 2018 and already by 2020 over 50
Slide 33: M&A
M&A • Clavister successfully entered the IAM market through the acquisition of PhenixID in 2016 • Further acquisitions will be undertaken provided they align closely with Clavister's strategy and accelerate profitable growth • Key characteristics of potential acquisitions we wish to undertake includ
Slide 34: Our Ambitions
Our Ambitions Clavister will continue to accelerate growth and improve leverage • Outperform underlying • Outperform underlying cybersecurity market cybersecurity market growth growth • Net sales growth of 20+% on • Provide industry-leading • Improved net sales growth average over the next three pro
Slide 35: Financial Perspective
FINANCIAL PERSPECTIVE
Slide 36: Accelerating our Growth Trajectory
Accelerating our Growth Trajectory Order intake CAGR of 20 % • Order book of 30 MSEK end of Q1 to be fulfilled within 24 months, majority within 12 months Net Sales CAGR of 17 % • BAE contract of 50 MSEK will generate additional order intake mainly during 2022 ORDER INTAKE (T12M) (MSEK) – 2024 Order
Slide 37: Continuous Investment in R&D
Continuous Investment in R&D 14,000 120,000 100,00 80,000 60,000 38% 40,000 35% 26% 20,000 24% 0 2017 2018 2019 2020 Net sales Total R&D costs Committed and continuous R&D investment to maintain competitive edge
Slide 38: Cost Base Under Control as Net Sales Grow
Cost Base Under Control as Net Sales Grow 187% 166% 150% 178% 160% 147% 155% 125% 23% 24% 19% 13% 2017 2018 2019 2020 Net sales Other income Cost of good sold Operating costs Total costs as a percentage of total revenue • Cost of goods sold keeps reducing as software component increases • Operating
Slide 39: Balance Sheet Supporting Accelerated Growth and Transition to Recurring Revenue
Balance Sheet Supporting Accelerated Growth and Transition to Recurring Revenue Net capital raising combined with reducing operating loss due to tight management of OPEX have led to a 115 MSEK increase in equity • Successful capital • Cash balance end • Loan of 50 MSEK raise of 200+ MSEK of Q1 2021
Slide 40: Multiple Valuation by Peers
Multiple Valuation by Peers 40.4x 13.4x 9.7x 9.4x 8.4x 5.8x 4.3x IAM / PAM peers Network Security peers Clavister Clavister will continue to accelerate growth and improve leverage Source: S&P Capital IQ – Share prices as of 7 June 2021
Slide 41: Summary
Summary • Rapidly growing market • Full, proprietary technology suite at opportunity driven by least as good – and often better – digitalization, 5G and Cloud – than global competitors accelerated due to Covid-19 • Brand value and quality of proprietary, • Versatile technology capable of Swedish bui