Hub Cyber Security Ltd. · NASDAQ:HUBC
Hub Cyber Security — SPAC Merger (November 2022)
22 slides from Hub Cyber Security's SPAC merger presentation, Nov 30, 2022
Slide 1: HUB Security Investor Presentation November 2022
HUB Security Investor Presentation November 2022
Slide 2: Disclaimer
Page 2 Disclaimer This investor presentation (this “Presentation”) is for informational purposes only to assist interested parties in making their own evaluation with respect to the proposed business combination (the “Proposed Business Combination”) between HUB Cyber Security (Israel) Ltd. (the “Com
Slide 3: Overview of Mount Rainier Acquisition Corp.
Page 3 Matthew Kearney (Chairman & CEO) ▪ CEO of high growth technology supported businesses: ▪ LeadingResponse (ICV); ▪ Screenvision – a Carlton/Thomson Joint Venture, growing revenue by 300% ▪ Chairman of Talent Partners, a Carlyle Group portfolio company ▪ Holds or has held board positions on: ▪
Slide 4: Transaction Overview
Page 4 Transaction Overview (US$ in millions, unless otherwise noted) Sources (1) (2) HUB Equity $1 , 200 SPAC Cash in Trust (3) - PIPE Cash (4) 50 Founder Shares 43 Transaction Expenses (Paid in Equity) 4 Total Sources $1, 297 Uses (1) (2) HUB Equity $1 , 200 Founder Shares 43 Cash to Balance Sheet
Slide 5: Investment Highlights
Page 5 Investment Highlights 1 Market leader in the confidential computing market with a proprietary hardware solution 2 Large and rapidly growing confidential computing market expected to reach $54 billion by 2026 at a CAGR of 90% - 95% (1) 3 Unique cyber security solution that protects sensitive c
Slide 6: HUB at a Glance
Page 6 HUB at a Glance Highlights HUB by the Numbers ▪ Market leader in the confidential computing market with a proprietary hardware solution ▪ Unique cyber security solutions that protects sensitive commercial and government data by preventing hostile intrusion at the hardware level ▪ Leading cust
Slide 7: HUB Senior Executive Team
Page 7 HUB Senior Executive Team Former Israeli Intelligence Elite Unit’s Veterans (8200, 81, MOD, C4I - IDF) Ido Helshtock CPO ▪ 20 + years of experience in the IDF Intelligence unit ▪ Has led mission - critical research and development projects in the field of secure communication, electronic & cy
Slide 8: HUB's Mission
Page 8 HUB’s Mission The current approach to cybersecurity is ineffective and failing Our aim is to cause a paradigm shift in the market by using a unique hardware level approach to protect sensitive and commercial data at every stage of the computing lifecycle
Slide 9: What is Confidential Computing?
Page 9 What is Confidential Computing? Confidential computing leverages a hardware - based trusted execution environment to protect data being processed. Prevalent Data Security Model Protection in Transit Protection at Rest Protection in Use Securing data being stored by encrypting it before storin
Slide 10: HUB's Unique Approach to Cyber Security
Page 10 HUB’s Unique Approach to Cyber Security Benefits of HUB’s Solution HUB’s Solution Includes 3 Product Families HUB provides a unique proprietary hardware and software solution that creates a protective envelope around each processing co mpo nent to effectively stop intruders. x Single - unit
Slide 11: Products Overview
Page 11 Products Overview HUB Security offers a wide range of products, solutions and industry use cases, including innovative confidential computing a ppl iances. Safety Assessment Suite Securing Edge & 5G Quantum Secured Cloud Workspace Quantum Ransomware Cure Healthcare and AI Security D. STORM R
Slide 12: Services Overview
Page 12 Incident Response Governance Risk and Compliance Services Overview Global team providing leading cyber security professional and managed services, including HUB integration & implementation of cy bersecurity, safety and reliability systems for enterprises and governments. Systems Safety & Re
Slide 13: Multiple Growth Vectors
Page 13 Multiple Growth Vectors Contracted and near - term growth opportunities can provide visibility into achieving forecasted growth. Expand into Growing IoT Market ▪ Commercialization of HUB technology into silicon ▪ Expected to be released i n 2023 Land & Expand Strategy ▪ Leverage existing cus
Slide 14: Projected HUB Financial Highlights
Page 14 Projected HUB Financial Highlights Adj. EBITDA % Gross Margin % Total Revenue Products and Technology Revenue FY2022E FY2026E $116M $40M 31% 9% $712M $609M 62% 25% Expected Impact 57% CAGR (FY2022E - FY2026E) 85% of Total Revenue by 2026 ~31 pts Expansion by 2026 ~16 pts Expansion by 2026
Slide 15: Financial Projection Model
Page 15 Financial Projection Model Adj. EBITDA is a non - IFRS measure. See “Disclaimer.” Note: FY2020 and FY2021 figures are pro - forma. $ (in thousands) FY2020 FY2021 FY2022E FY2023E FY2024E FY2025E FY2026E Total Revenue $68.6 $77.7 $115.8 $173.6 $263.8 $444.5 $711.8 Revenue Growth 13.4% 49.0% 49
Slide 16: Projected Revenue by Type and Gross Margin
Page 16 $115.8 $173.6 $263.8 $444.5 $711.8 30.7% 42.9% 50.9% 56.5% 61.8% 2022E 2023E 2024E 2025E 2026E $40.2 $91.9 $175.5 $349.0 $608.6 66.8% 67.0% 68.5% 67.5% 69.5% 2022E 2023E 2024E 2025E 2026E Projected Revenue by Type and Gross Margin Total Revenue & Gross Margin Products & Technology Revenue &
Slide 17: Adjusted EBITDA Expansion Through Operating Leverage
Page 17 $10.8 $21.9 $46.9 $94.0 $179.3 9.3% 12.6% 17.8% 21.2% 25.2% 2022E 2023E 2024E 2025E 2026E Adjusted EBITDA Expansion Through Operating Leverage Adjusted EBITDA & Adjusted EBITDA Margin (1) 1) Adj. EBITDA and Adj. EBITDA Margin are non - IFRS measures. See “Disclaimer”. Note: $ in USD millions
Slide 18: Valuation Overview: Selected Peers
Page 18 Valuation Overview Selected Peers High Growth Cybersecurity Comparables Peer Group HUB Security’s capabilities position it as a powerful force in the high growth cybersecurity peer set Source: CapIQ and FactSet (Market Data as of November 22, 2022). Rationale ▪ Operate in the similar industr
Slide 19: Valuation Overview: Total Revenue Growth Benchmarking
Page 19 49.9% 60.1% 24.0% 21.7% 37.4% 35.3% 32.7% 13.9% 64.0% 17.3% 22.1% 11.8% Valuation Overview Total Revenue Growth Benchmarking Operational benchmarking – revenue growth and gross margin profiles. Source: CapIQ and FactSet (Market Data as of November 22, 2022). (FY2022E – FY2023E) Peer Median:
Slide 20: Valuation Overview: EV / Revenue
Page 20 7.4 x 6.8 x 7.4 x 9.8 x 11.2 x 10.9 x 4.1 x 5.0 x 2.9 x 7.9 x 3.3 x Valuation Overview EV / Revenue Source: CapIQ and FactSet (Market Data as of November 22, 2022). Benchmarking (Cont’d) Peer group valuation benchmarking. (FY2023E) Peer Median: 7.1x
Slide 21: Valuation Overview: Adjusted EBITDA Margin
Page 21 12.6% 25.2% 24.7% 28.7% 19.6% 13.6% 16.1% 0.31% (19.8)% 7.9% 2.9% 9.8% Valuation Overview Adjusted EBITDA Margin (1) Benchmarking (Cont’d) Peer group profitability benchmarking. (FY2023E) Peer Median: 11.7% ‘23E ‘26E 1) Adj. EBITDA Margin shown for the Company, which is a non - IFRS measures
Slide 22: Thank you.
Thank you.
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