Verimatrix Sa · EURONEXT:VMX
Verimatrix Sa — Investor Presentation (March 2022)
33 slides from Verimatrix Sa's investor presentation, March 2022
Slide 1: Webinar Presentation: Strategy Plan 2022-2025
WEBINAR PRESENTATION STRATEGY PLAN 2022-2025 Amedeo D’Angelo, Chairman & CEO Jean-François Labadie, CFO March 2022
Slide 2: Leadership
Leadership Amedeo D’Angelo Jean-François Labadie Chairman & CEO since 2015 CFO since Nov. 2021 30 years holding C-Suite position in the field 20 years of Experience at Quadient (formely of security, payment and semiconductors, Neopost) specialised in Digital Communications and Mailroom Equipments, l
Slide 3: Two leaders joining to become a cybersecurity powerhouse
Two leaders joining to become 2019-2021 a cybersecurity powerhouse 2007-2019 A NEW LEADER BORN 1995-2005 Integration between Verimatrix and Inside secure in 2019 SCALE-UP WITH INNOVATION R&D investment : 25% of revenue. App Shield Launch: Industry’s first 2 COMPANIES LAUNCHED NFC Chip MicroR
Slide 4: Verimatrix's main assets
Verimatrix’s main assets 800+ 320 GARTNER Customers in 120 countries Employees, 8 global offices RECOGNIZED In-App Protection, 2019–2022 CYBERSECURITY 500M+ 25 BREAKTHROUGH AWARDS App clients across devices Years of security innovation Automotive Cybersecurity Solution of the Year 2021 2021 INFORMA
Slide 5: Verimatrix a global cybersecurity player
Verimatrix a global cybersecurity player SALES TEAM R&D TEAM 72 FTE 128 FTE USAs Canada* France Philippines Korea San Diego Paris Shanghai (Headquarter) (Sales) Brazil Colombia* UK Germany Amsterdam India Singapore (Sales and Pre-sales engineers) Argentina* Mexico* Sweden Norway Munich Japan Vietnam
Slide 6: The R&D teams is well recognized for its strong expertise
The R&D teams is well recognized for its strong expertise 128 FTE in R&D located in 3 expertise centers (America, Europe, Asia) 4 more members hold a PhD in cryptographical Mathematics and Neurosciences. Developed and patented, a cryptographic procedure to protect keys in the first smart card le
Slide 7: 2 global business lines
2 global business lines protecting an unprotected digital world ANTI PIRACY THREAT DEFENSE PROTECT VALUABLE CONTENTS PROTECT APPS AND IOT Protecting content for Streaming Media Extended threat defense software Pay TV, Telcos and Broadcasting from the devices to the enterprise 7
Slide 8: Wide spectrum of customers
; Wide spectrum of customers CHASEO = VISA @B wc Dae 6B Saar «Santander B Banco det Pacifico i) TINKoFF Bebe (GSTPL globo Oretevisa | Skko | sky CR2 Onava nets * ®HST Telkom 1.4 Bell Media @ off @s 2 | DP @ Turner HBO flcoblemas htc EPSON Ad DENSO SECLAN Rai AZZ @toolbox (BMEGACABLE. TOSHIBA C k DNP
Slide 9: Cybersecurity is the major concern for C-suite executives
Cybersecurity is the major concern for C-suite executives WEF, Global Risks Report 2022 “ By 2025, up to 60% of companies will use cybersecurity risk management as a primary determinant in conducting business transactions ” Gartner 2022 9
Slide 10: Verimatrix targets growing submarkets
Verimatrix targets 2 growing submarkets among the 9 tech categories* shaping the future of cybersecurity THREAT DEFENSE ANTI PIRACY Application Cloud Content & Identity Infrastructure Integrated Network B2C Consumer Other Security Security Security data Security Access protection Risk Security softw
Slide 11: Our business lines are supported by market drivers (1/2)
Our 2 business lines are supported by 2 market drivers (1/2) 1 STREAMING SERVICES INCREASE THE LOST REVENUES FROM PIRACY Source: Digital TV Research, Anozrway 2022 11
Slide 12: Our business lines are supported by market drivers (2/2)
Our 2 business lines are supported by 2 market drivers (2/2) 2 33 BILLION CONNECTED DEVICES EXPECTED BY 2026 THROUGH 15% CAGR Billion of devices 35 32.7 30 +15% 28.5 24.6 IoT devices are expected 25 21.5 to grow at 32% p.a., 20 18.7 reaching 1.9B in 2021 16.3 14.3 15 Over 25% of identified attac
Slide 13: Our ambition for 2025
Our ambition for 2025 PROTECT CONTENT FROM PIRACY AND DEFEND THE ENTERPRISE FROM UNMANAGED DEVICES ANTI PIRACY THREAT DEFENSE Become N°1 in Leverage our position protecting video in IOT and Apps protection for the streaming market to extend into entreprise’s endpoints protection market FINANCIAL TAR
Slide 14: Anti-Piracy
ANTI-PIRACY 14
Slide 15: Video consumption has evolved
ANTI-PIRACY Video consumption has evolved TRADITIONAL Pay TV MODEL GLOBAL $73B OTT MARKET BY 2023* 15 *Source: PwC Global Entertainment & Media Outlook 2019-2023 report, 2023e
Slide 16: Piracy & threats have also evolved
ANTI-PIRACY Piracy & threats have also evolved Pirated Ads Password DDoS VoD hijacking stuffing extortion 16
Slide 17: Anti-Piracy Portfolio
“Anti-Piracy” Portfolio ANTI-PIRACY from Conditional Access product to cutting edge Streamkeeper solution DIGITAL WORLD Streaming media Telcos & Pay TV ANTI-PIRACY VCAS Multi-DRM Streamkeeper Broadcasting Payments & financial Watermarking HDCP/DTCP Phone & IoT devise apps ENTERPRISE Securing premium
Slide 18: Streamkeeper
ANTI PIRACY Streamkeeper battle-ready cybersecurity engineered to hunt down & take out video piracy Multi-DRM Counterspy App Anti-Piracy Telemetry with Edge Authenticator Shutdown Watermarking 18
Slide 19: Protecting Live Streaming Sports Revenue
ANTI-PIRACY Protecting Live Streaming Sports Revenue with Verimatrix Streamkeeper DRM and Watermarking Mola.tv, a popular Indonesian OTT broadcaster, wanted to safeguard and better monetize live sports content licensed from around the world. Looking for a highly scalable SaaS solution that would off
Slide 20: Threat Defense
THREAT DEFENSE lij:l Verimatrix
Slide 21: Threat defense is a response to boom in cyber attacks
“Threat defense” is a response to boom in cyber attacks THREAT DEFENSE Solarwinds Attack Colonial Pipeline Attack $90M 15M Barrels of Gasoline Direct Damage Halted for 6 Days JBS Attack 2021 T-mobile Attack $11M 47M Users’ Ransom Paid Personal Data Exposed 21
Slide 22: Explosion of Apps & Connected Devices
Explosion of Apps & Connected Devices Has rapidly expanded the threat surface -- and increased risks to the enterprise 3X 6M 75% CONNECTED DEVICES APPS ON OF ALL APPS & DEVICES THAN PEOPLE BY 2023 GOOGLE PLAY & UNPROTECTED APPLE APP STORE 22
Slide 23: Solution: Protected Apps and Devices with Verimatrix
Solution: Protected Apps and Devices with Verimatrix THREAT DEFENSE On-Device Device Remote Behavioral Number of Security Visibility & Control Analysis Devices Managed Devices SMALL BYOD MED LG Unmanaged Devices Connected Apps XL 23
Slide 24: Protecting Digital Applications and Connected Devices
Protecting Digital Applications and Connected Devices THREAT DEFENSE DIGITAL WORLD Streaming media Telcos & Pay TV Broadcasting Payments & financial Code Shield App Shield Phone & IoT devise apps ENTERPRISE Keyless entry & ignition Autonomous driving THREAT DEFENSE Key Shield Mobile Payment Healthca
Slide 25: A unique competitive positioning
A unique competitive positioning THREAT DEFENSE at the Intersection of 3 Critical Security Sectors Application Security Device Security EDR (Endpoint Detection & Response) 25
Slide 26: Verimatrix Secure Delivery Platform
ANTI-PIRACY + THREAT DEFENSE Verimatrix Secure Delivery Platform Anti-Piracy + Threat Defense in a single user interface 26
Slide 27: Development Strategy
DEVELOPMENT. STRATEGY. _ ‘i —— a
Slide 28: Verimatrix strategy
Verimatrix strategy deliver business growth and recurrent revenues ANTI PIRACY THREAT DEFENSE Key levers Gain market share on video Support market demand conditional access Expand our presence in to deliver business verticals like bank, health growth Grow in streaming and OTT and automotive segment
Slide 29: ARR will grow supported by SaaS and subscription business model
ARR will grow supported by SaaS and subscription business model CAGR in ARR ARR breakdown expected above 30% (percentage) +70% $26.8M >70% 2021 2025 2021 2025 ARR SaaS+Subsc ARR Maintenance 29
Slide 30: Business model transformation is accelerating
Business model transformation is accelerating Split of revenues over the years Total Recurring Revenue will increase over the years % of the annual revenues And will represent more than70% of total revenue by the end 2025 Licence (including Royalties) >70% >70% SaaS 35% & 35% Maintenance 2021 2025 2
Slide 31: Revenue evolution regarding transformation journey
Revenue evolution regarding transformation journey Revenue evolution (Recurring / Non-Recurring) CAGR in ARR expected above 30% >100 71.8 $26.8M 2021 2025 2021 2022 2023 2024 2025 The change of the business model will deliver a Recurring Revenue Non Recurring Revenue sustainable and profitable growt
Slide 32: Why invest in Verimatrix now?
Why invest in Verimatrix now ? • Verimatrix is a technology company well positioned in the high demand cybersecurity market: +15% market growth in both segments generating company growth • With 25 years of innovation, Verimatrix's two product lines are recognized as leaders in their market segment.
Slide 33: Financial Information
FINANCIAL INFORMATION Investor relations CFO finance@verimatrix.com Media Contact Matthew Zintel communication@verimatrix.com Financial Calendar Q1 2022 Revenue: April 28, 2022 (after market) Visit: https://investors.verimatrix.com/