Slide 1: Senetas Corporation Limited 2018 Interim Results
For personal use only Senetas Corporation Limited 2018 Interim Results – 26 February 2018 © 2018 Senetas Corporation Slide 1
Slide 2: HY18 Highlights
HY18 Highlights For personal use only • Sales growth of 10.3% as key customers recommenced normal ordering patterns • Gross profit margin increased to 80% • Profit before tax up 89% to $2.39m • Net Profit up 90% to $1.64m • First sales of the 100Gbps encryptor to a European customer via Gemalto • Su
Slide 3: Priorities for 2H18
Priorities for 2H18 For personal use only Further validation and development of software encryption products, and a focus on additional security certification to increase European market penetration – providing growth opportunities in FY19 and beyond. • Finalise development of transport Layer (Layer
Slide 4: Revenue drivers
Revenue drivers For personal use only In the medium-term, Senetas' transition to a multi-product business is expected to drive significantly increased revenues. These will come from: • Greater market adoption of 100Gbps networks • Market adoption of virtualised encryption solutions • The adaption of
Slide 5: Outlook
Outlook For personal use only • Further earnings growth expected in 2H18 • Strong sales pipeline for core product range • Additional sales of the new 100Gbps encryptor • 100Gbps sales to date have been slower than anticipated, but further sales are expected in 2H18 • Larger orders continue to be dep
Slide 6: Key Financials
Key Financials For personal use only © 2018 Senetas Corporation Slide 6
Slide 7: HY18 Key Financials
HY18 Key Financials Half year ended 31 December 2017 HY18 $000’s HY17 $000’s Change For personal use only Revenue from ordinary activities 10,301 9,340 10% Gross profit 8,190 6,823 20% Other income 215 243 (11%) Profit before tax 2,394 1,266 89% Tax expense (754) (401) (88%) Net profit after tax 1,6
Slide 8: Strong Balance Sheet & Positive Cash Flow
Strong Balance Sheet & Positive Cash Flow For personal use only NET ASSETS $’000 CASH AND CASH EQUIVALENTS $’000 Cash post further inv. in SAT in 23,151 HY18 21,483 20,848 20,570 18,526 20,091 15,902 13,093 9,026 6,805 FY14 FY15 FY16 FY17 HY18 FY14 FY15 FY16 FY17 HY18 © 2018 Senetas Corporation Slid
Slide 9: Operational Update
Operational Update For personal use only © 2018 Senetas Corporation Slide 9
Slide 10: Partner Relationships
Partner Relationships For personal use only • Gemalto • In December 2017 Gemalto received a takeover offer from Thales. Subject to regulatory approvals, the transaction is expected to be completed late in CY18. Combined Gemalto and Thales will be a global leader in digital security and cyber securit
Slide 11: Senetas SDN-Compatible virtualised encryption
Senetas SDN-Compatible virtualised encryption For personal use only • The major development focus for Senetas in HY18 was virtualised encryption technologies • Senetas is working to further develop its technologies and expand use cases. Development has progressed to allow larger scale opportunities
Slide 12: SDN – Large Scale WAN Deployment
SDN – Large Scale WAN Deployment Example of increasing Senetas’s addressable market segments From core infrastructure to extended WAN For personal use only © 2018 Senetas Corporation Slide 12
Slide 13: State-Of-The-Art Solutions
State-Of-The-Art Solutions For personal use only © 2018 Senetas Corporation Slide 13
Slide 14: Senetas Competitive Advantages
Senetas Competitive Advantages For personal use only 20 years of crypto expertise 20 years of hardware innovation Tested and certified by all major government approved testing authorities Zero latency and data overheads whilst transmitting at speeds up to 100Gbps All Senetas encryption pro
Slide 15: Senetas Differentiators
Senetas Differentiators Hardware Encryption For personal use only • High-assurance security technical credentials and independent certifications in key markets • Only multi-certified100Gbps Ethernet encryptor that supports all topologies • Proven expertise in delivering services to large corporates,
Slide 16: Tightening Regulatory Landscape Supports Growth
Tightening Regulatory For personal use only Landscape Supports Growth © 2018 Senetas Corporation Slide 16
Slide 17: Awareness & Accountability
Awareness & Accountability Australia For personal use only • Notifiable Data Breaches scheme comes into effect on 22 February 2018 • Organisations will be required to notify the Australian Information Commissioner and individuals affected by data breaches which are likely to result in serious harm U
Slide 18: Detailed Financials
Detailed Financials For personal use only © 2018 Senetas Corporation Slide 18
Slide 19: Trading Revenues (#039;000)
Trading Revenues ($’000) For personal use only United States Other Australia and New Zealand 18,920 Europe 17,591 EBITDA 15,907 10,950 10,302 65% Product sales revenue (maintenance revenue 35%) FY14 FY15 FY16 FY17 HY18 © 2018 Senetas Corporation Slide 19
Slide 20: Operating Cash Flows
Operating Cash Flows Half year ended 31 December 2017 1H18 $000’s 1H17 $000’s Change For personal use only Receipts from customers 9,107 8,566 6% R&D tax concession net of tax paid - 210 Payments to suppliers & employees (7,777) (9,148) (15%) Operating cash flows 1,536 (141) Investing cash flows (1,
Slide 21: Balance Sheet Remains Strong
Balance Sheet Remains Strong Half year ended 31 December 2017 1H18 $000’s 1H17 $000’s Change For personal use only Cash and cash equivalents 20,570 20,091 2% Trade and other receivables 4,256 5,401 (21%) Unlisted equity investments 2,850 2,227 28% Total assets 32,022 31,704 1% Trade and other payabl
Slide 22: Thank You
Thank You For personal use only www.senetas.com © 2018 Senetas Corporation Slide 22