Slide 1: Senetas Full Year Results
For personal use only SENETAS FULL YEAR RESULTS 27 AUGUST 2015
Slide 2: Agenda
AGENDA For personal use only • FY15 delivering strong profit growth and cash flow • Building a sustainable base to support future growth • Reinvesting to meet customer needs and drive new revenue opportunities
Slide 3: FY2015 Delivering Strong Profit Growth and Cash Flow
For personal use only FY2015 DELIVERING STRONG PROFIT GROWTH AND CASH FLOW
Slide 4: FY15 Highlights
FY15 HIGHLIGHTS For personal use only Significant Growth & Profitability • Net profit before tax increased 145% to $6.0m • Operating revenue increased 47% to $16.2m Sustainable Platform for the Future • Strengthening relationships with major global partners and customers • Good balance of product sa
Slide 5: Financial Overview
HY15 FINANCIAL OVERVIEW For personal use only FY15 FY14 Change $000’s $000’s Revenue from ordinary activities 16,207 11,038 47% Profit before tax 6,021 2,458 145% Net profit after tax 4,016 2,957 36% FY15 represents the first full year of benefit from the improved master distributor agreement with S
Slide 6: Sustainable Growth
SUSTAINABLE GROWTH For personal use only TRADING REVENUE PROFIT BEFORE INCOME TAX #039;000, excluding consulting #039;000, excluding consulting 16,207 6,021 11,038 2,458 7,685 (893) Jun 13 Jun 14 Jun 15 Jun 13 Jun 14 Jun 15 Revenue growing • More balanced sources of revenue with product maintenance increa
Slide 7: Returns on Investment
RETURNS ON INVESTMENT For personal use only NET ASSETS RETURN ON EQUITY #039;000 13,093 39% 36% 9,252 6,071 (14%) Jun 13 Jun 14 Jun 15 Jun 13 Jun 14 Jun 15 Improved profitability driving growth in shareholder equity • Net assets have increased 45% to 13.1m Attractive return on assets • Return on equity
Slide 8: Strong Operating Cash Flows
STRONG OPERATING CASH FLOWS For personal use only FY15 FY14 Change $000’s $000’s Operating cash flows 9,577 2,879 3x R&D tax concession 1,386 1,359 2% Investing cash flows (470) (110) 4x Operating cash flow growth significant and NET CASH FLOW FROM OPERATIONS #039;000 consistent with business performan
Slide 9: Balance Sheet Supports Growth
BALANCE SHEET SUPPORTS GROWTH For personal use only FY15 FY14 Change $000’s $000’s Cash and cash equivalents 15,902 6,805 134% Trade and other receivables 4,043 5,483 (26%) Total Liabilities (9,298) (6,144) 51% Cash balance of $15.9m • Flexibility for disciplined investment in organic and inorganic
Slide 10: Building a Sustainable Base to Support Future Growth
Building a Sustainable Base to Support Future Growth For personal use only
Slide 11: FY15 Operational Overview
FY15 OPERATIONAL OVERVIEW For personal use only Sales of encryptors remain the key revenue driver • 61% of revenue in FY15 • But maintenance fees are an important and stable source of revenue Building stronger relationships with master distributor, technology partners and end customers • Increased e
Slide 12: FY15 Operational Overview
FY15 OPERATIONAL OVERVIEW For personal use only Greater penetration with existing products • Large share of growth from relationships with new corporate customers • Government and defence remain the major customers Building capability • Small increase in FY15 investment in R&D, new product developme
Slide 13: The Gemalto Relationship
THE GEMALTO RELATIONSHIP For personal use only Gemalto acquisition of SafeNet during FY15 • This relationship remains strong and mutually beneficial • Senetas’ Master Distribution Agreement with SafeNet continues unchanged under Gemalto ownership Key strategic partnership • Gemalto is master distrib
Slide 14: Reinvesting to Meet Customer Needs and Drive New Revenue Opportunities
REINVESTING TO MEET CUSTOMER NEEDS AND DRIVE NEW REVENUE OPPORTUNITIES For personal use only
Slide 15: Investing in Our Business
INVESTING IN OUR BUSINESS For personal use only Building capability to drive medium term growth • Accelerate R&D roadmap and launch projects to maintain market leading position • Virtualisation of encryption – developing technologies in response to changing networking protocols and ways of managing
Slide 16: Investing in Our Business
INVESTING IN OUR BUSINESS For personal use only International sales support • Additional Senetas staff in critical markets to assist Gemalto sales teams, guide strategic accounts and projects • Building sales focus with our key partners Increasing investment in technology partners and end customers
Slide 17: Key Growth Drivers
5 KEY GROWTH DRIVERS For personal use only 1. Accelerate growth in key high speed encryptor (HSE) markets in partnership with Gemalto to leverage their increased sales and marketing footprint 2. Develop new opportunities in low HSE penetration, markets such as India, Japan, Singapore, South America,
Slide 18: Summary and Outlook
SUMMARY AND OUTLOOK For personal use only • Senetas is building a strong track record of sustainable profit growth and cash flow • The company has a robust balance sheet to support disciplined investment in organic and potential inorganic growth initiatives in the future • Positive sector thematics
Slide 19: Disclaimer
DISCLAIMER For personal use only • THIS PRESENTATION ("PRESENTATION") HAS BEEN PREPARED BY SENETAS CORPORATION LIMITED (“SENETAS“ OR “THE COMPANY”) FOR THE SOLE PURPOSE OF PROVIDING GENERAL AND BACKGROUND INFORMATION ON THE COMPANY. • NOTHING CONTAINED IN THIS PRESENTATION IS OR SHOULD BE RELIED UPO
Slide 20: Thank You
For personal use only THANK YOU