Slide 1: 2021 Fiscal Year Earnings Call Presentation
December 16, 2021 Arqit Quantum Inc. (NASDAQ: ARQQ) 2021 Fiscal Year Earnings Call Presentation Stronger simpler encryption JM0
Slide 2: Safe Harbor Statement
Safe Harbor Statement 2 The statements in this presentation that are not historical facts, including, most importantly, those statements preceded by, or that include, the words “will,” “may,” “believe,” “projects,” “expects,” “anticipates” or the negation thereof, or similar expressions, constitute
Slide 3: Our mission
3 Our mission To use our world leading quantum encryption platform to keep safe the data of our governments, enterprises and citizens. TM0
Slide 4: Highlights for FY2021
4 Highlights for FY2021 Transformational year both operationally and financially Completed combination with Centricus Acquisition Corp and NASDAQ listing. ▪ ARQQ trading commenced September 7, 2021. Ended the fiscal year with a net cash position of $87m. ▪ Sufficient to implement our business plan.
Slide 5: Problem – Legacy encryption is obsolete
5 Problem – Legacy encryption is obsolete It was never intended to protect our hyper connected world. PKI was designed decades ago. Quantum computers will soon compromise the mathematics at the heart of PKI. It has many vulnerabilities in its implementation for attackers to exploit. The world is bei
Slide 6: Quantum threat is profound
Quantum threat is profound “…the threat to information protected by asymmetric cryptography [PKI] exists now because an adversary can collect currently encrypted data and break it when quantum computation becomes available”. U.S. Department of Homeland Security 10/21. “[organisations] fear that quan
Slide 7: Solution – A new way to agree symmetric encryption keys
Solution – A new way to agree symmetric encryption keys Arqit’s transformational innovation. A completely new way to create and agree unbreakable symmetric keys. Symmetric keys are the solution. ▪ Long Random number cannot be broken by computers. ▪ Used with physical couriers for decades. ▪ Previous
Slide 8: What does the product do?
8 What does the product do? ▪ QuantumCloud Œ has transformational innovation in a satellite quantum protocol, and new endpoint software cryptography. ▪ In 2023 two quantum satellites will launch to deliver the root source of randomness to data centres in a fully quantum safe manner, using an Arqit p
Slide 9: How we go to market
9 9 How we go to market Private Instance ▪ Major Customers buy a “Private Instance ”. ▪ A fully sovereign controlled end to end delivery of Arqit’s tech stack with unlimited key creation license and lifetime support . Channel Partnership ▪ National Champions buy “Master Distribution Rights” in order
Slide 10: Early customers secured in key vertical markets
Tech applies to every vertical in the World, but early Customers secured in key vertical markets. Arqit market focus Telecom s Gov & Defence Financial Services UK Government Phase 1: Early focus sectors Phase 2: Global PaaS to address every enterprise and government user in the world IoT ▪ In Phase
Slide 11: Targeted market success
Targeted market success Defence Telco Financial Services IoT Federated Quantum Systems consortium formed to sell “private instances” to governments 30 identified potential customers to date representing significant near term opportunity Agreement to become channel partners and incorporate QuantumClo
Slide 12: 2021 Financial Highlights
Net proceeds of c. $96m raised from our NASDAQ listing and combination with CAC 2021 Financial Highlights Cash and cash equivalents of Adjusted loss before tax of 1. Signed contracts with value in excess of $86.9m $15.6m $130m IFRS loss before tax of $271.7m JM0
Slide 13: Outlook for FY 2022
Outlook for FY 2022 13 Strengthening tailwinds which underpin the need for Arqit’s products . ▪ Weaknesses of PKI ; acceleration of Quantum computing capabilities . Major potential customers are aware of the scale of the problem and the unsuitability of alternatives . ▪ Diligent in promoting Quantum
Slide 14: Q&A
1@) Q&A
Slide 15: Appendix – Use of Non-IFRS Financial Measures
Appendix – Use of Non - IFRS Financial Measures
Slide 16: Use of Non-IFRS Financial Measures
Use of Non - IFRS Financial Measures Use of Non - IFRS Financial Measures The Company presents adjusted loss before tax, which is a financial measure not calculated in accordance with IFRS . Although the Company's management uses this measure as an aid in monitoring the Company's on - going financia
Slide 17: Reconciliation of IFRS loss before tax to Non-IFRS adjusted loss before tax
Reconciliation of IFRS loss before tax to and Non - IFRS adjusted loss before tax 17 The Company presents its consolidated statement of comprehensive income according to IFRS and in line with SEC guidance . Consequently, the Company’s charges and costs relating to the business combination with CAC a
Slide 18: Stronger, simpler encryption
Stronger, simpler encryption 136491008 v1