Telos Corporation · NASDAQ:TLS
Telos — Investor Presentation (December 2020)
27 slides from Telos's investor presentation, Dec 15, 2020
Slide 1: Investor Presentation December 2020
Investor Presentation December 2020
Slide 2: Forward-looking statements
2 Other than statements of historical fact, all information contained in this presentation, including statements regarding the future operating results and financial position of Telos Corporation (the “Company”), its business strategy and plans, product, service, and technology offerings, market gro
Slide 3: Telos Investment Highlights
1) Based on Telos management estimates 3 Based on Telos management estimates Telos Investment HighlightsPremier Provider of Software-based Solutions for the World’s Most Security Conscious Customers Telos Security Solutions consistently deliver more efficient, more effective, and more secure operati
Slide 4: Telos Snapshot
Note: Reflects fiscal year ended December 31Based on Telos management estimatesRecurring revenue for each of the last three years Revenue ($MM) $108 $138 $159 $113 $135 350+ Customers Revenue Profile85% recurring250% sole source / limited competition1 4 Revenue ($MM) Intellectual Property3,000+ man-
Slide 5: Unique Solution Set Addressing Urgent Customer Needs
5 80% of 2019 Gross Profit 20% of 2019 Gross Profit Unique Solution Set Addressing Urgent Customer Needs SecuritySolutions SecureNetworks AMHS Governance risk and compliance solution that facilitates cloud migrationMis-attribution obfuscation solution that protects user information and locationTrust
Slide 6: Marquee Customers
Marquee Customers > toceneen manrinZ- @ accenture a 7 eam FedEx. infor sz%cc* citi vibrent23 rackspace = AWS. ere IronNet Deloitte. S™NS2 iui, ot. SIEMENS verizon” —NgRTHROP- > (symantec &> @zscaler Telos
Slide 7: Demand for Telos' Security Solutions Has Never Been Greater
7 4.1B Exposed records from data breaches in 1H19 $8.6MM Average cost of data breach in U.S. as of 2019 954K Average web attacks blocked per day 280 Average days to identify & contain a breach Sources: Comparitech, Symantec Internet Security Threat Report 2019, Cyber Risk Analytics 2019 MidYear Data
Slide 8: Telos is at the Forefront of Security Solution Development
8 Telos is at the Forefront of Security Solution Development 1994 Common Access Card (“CAC”) Largest biometric application in the government 2016 Xacta partnership with Amazon Web Services to provide cloud solution to the CIA 2018 Telos Ghost launched to shield communications, transactions, and netw
Slide 9: Industry-Leading Cyber Risk & Compliance Management
9 Xacta accounts for common, shared, and customer specific controls On-premises Hybrid Cloud / Multi Cloud Operationalizes complex frameworks and required reporting Compliance Data Sharing Continuous Monitoring GRC Workflow Automates security compliance activities through inheritance & control mappi
Slide 10: Xacta: Cloud Focus and Reference-ability Expands Market Share
Xacta: Cloud Focus and “Reference-ability” Expands Market Share and Opportunity 10 Cloud Providers Additional Fed Gov(IC, DOD, and FedCiv) Commercial International (Partners and customers) Commercial SaaS Vendors C2S Security Solutions % of Business Line Revenue 35%
Slide 11: AWS and Microsoft Azure Partnerships
11 Sources: Gartner, RightScale Worldwide Public Cloud Service Revenue$ in Billions Public Cloud Adoption% of All Respondents 14% CAGR Rick Trinidad, Worldwide Public Sector, AWS “With Xacta’s…inheritance and provider project features and capabilities, AWS expects a dramatic increase in efficiencies
Slide 12: Inheritance Creates Channel Partnerships to Drive Incremental Revenue
Prospective & Pending Current Cloud customers and partners use Xacta to automatically inherit common compliance data Automated inheritance accelerates cloud adoption and creates incremental demand for Xacta solution Cloud infrastructure owners share control information with partners and customers vi
Slide 13: Reduce Attack Surface, Hide Digital Exhaust & Disguise Identity
Encrypted communications, storage and applications Private Network Access Private Web Access Cloaked Services Secure, private network in the cloud Anonymous worldwide internet access 13 Reduce Attack Surface, Hide Digital Exhaust & Disguise Identity You can’t attack what you can’t see Security Solut
Slide 14: Mission-Critical Cybersecurity Where it is Needed Most
14 Mission-Critical Cybersecurity Where it is Needed Most Security Solutions 10% % of Business Line Revenue
Slide 15: Advancing Capabilities & Proven Validation Driving New Customer Wins
50% Based on Telos management estimates derived from customer / sponsor contract assumptions FBIFingerprint Capture SaaS biometric web capture Pre-employment screeningIdentity vetting TSA - AirportsEmployee Vetting Continuous monitoring of airport employees – Security Threat AssessmentFingerprint ca
Slide 16: IDTrust360 Cloud Business
Affiliated Service Providers Fully integrated suite of Telos ID and commercial services for identity verification, enrollment, fingerprinting, insider threat management, biometric matching, and personnel security IDTrust360 has direct interfaces to: The FBI's criminal recordsDHS's terrorist watch li
Slide 17: Secure Mobility and Network Management / Defense
Productivity — Mobile / remote accessCoverage — Seamless roaming between Wi-Fi and cellular on any device, anywhereCost Savings — Single integrated enterprise mobility management solutionEfficiency — Simplify the process of updating devices with the most recent version of apps and contentSecurity —
Slide 18: Management Team
John Wood(President, CEO, and Chairman) Joined Telos as EVP and COO in 1992; named President and CEO in 1994 Formerly worked in finance for Dean Witter Reynolds, and UBS Securities Michele Nakazawa(EVP and CFO) Joined Company in 2004 as VP and Controller; named CFO in 2005Former experience includes
Slide 19: Financial Highlights
Financial Highlights Telos
Slide 20: Key New Contract Wins and Financial Highlights
TSA PreCheck – $1.7B+1 total 10-year contract potentialCMS – $2.0B2 total 10-year contract potentialU.S. Government Telos Ghost Customer – $50MM1 with potential to increase dramatically over 10 years once converted to program of record Key New Contract Wins Note: Reflects fiscal year ended December
Slide 21: Growth Strategies
Grow revenue & expand margins by building robust sales channels Target & replace inefficient legacy products withinorganizations Leverage diverse Security Solutions to expand commercial market presence Extend Security Solutions platform & ecosystem to capitalize on massive scalability Broaden existi
Slide 22: Investment Highlights
1) Based on Telos management estimates Telos Security Solutions consistently deliver more efficient, more effective, and more secure operating environments Endorsed by marquee intelligence community customers with growing commercial market penetration Large and fast growing total addressable market
Slide 23: Appendix
Appendix Telos
Slide 24: Contact Information
24 Contact Information Investor Relations:The Blueshirt Group - brinlea@blueshirtgroup.comMedia Relations:Merritt Group - damiano@merrittgrp.com
Slide 25: Adjusted EBITDA Reconciliation
($ in thousands) FY 2017 FY2018 FY2019 9 mo. 2019 9 mo. 2020 Net income (loss) attributable to Telos Corporation ($5,833) ($1,640) ($6,401) ($2,921) ($2,178) Interest Expense 6,690 7,258 7,467 5,470 6,026 (Benefit) provision for income taxes (2,767) 31 (104) (187) (136) Depreciation 1,999 3,028 4,97
Slide 26: Customer Need / Pain Point and Telos Solution
Customer Need / Pain Point Telos Solution Solution Capabilities Time, cost, effort of cyber risk and compliance managementCompliance as an obstacle to cloud adoptionAudit fatigue – many standards Automated cyber risk management workflowInheritance and control mappingAutomated continuous monitoring M
Slide 27: Solutions that empower and protect the enterprise
«Telos Solutions that empower and protect the enterprise.” 27