For personal use only Cloud Security Solutions for the Enterprise - PowerPoint PPT Presentation

For personal use only Cloud Security Solutions for the Enterprise Half Year 2017 Results Presentation Innovate • Create • Execute February 2017

Update to Financial Presentation For personal use only Please note: • This is an updated version of the previous presentation lodged on Tuesday 28 th of February, 2017. • The change to the presentation refers to slide 7 (previously 6) where figures shown in reference to line expenses for “Engineering and development” and “General and administration” for 1HFY16 were shown as complete numbers, rather than the appropriate reduced figure in ‘000s. • This current presentation reflects an accurate representation of the associated numbers.

Firstwave – the Half in Numbers For personal use only up 100% up 80% up 20% 1 2 5 9 128 154 Dec 15 Dec 16 Dec 15 Dec 16 Dec 15 Dec 16 Telcos Nodes* Telstra Customer (Points of Presence) Growth (Nº) up 55% up 32% $2.7M $4.2M $3.9M $5.3M Dec 15 Dec 16 Dec 15 Dec 16 Total Contracted Annualised Monthly Recurring Revenue* Value* 3 * Refer definition in Appendix

FirstWave WHO WE ARE For personal use only Heritage from Telstra Market leading patented Australian tech company Listed for 7 months Research Labs tech in content security founded in 2001 as at December 2016 Single viewing portal that Telstra Cloud Security Security as a Service Catalogue of cloud normalises multiple vendor Services Partner Cloud Platform services for Telcos interfaces 4

FirstWave WHAT WE DO For personal use only Delivered & normalised on FW To sell to Enterprise & Embed Security Vendors Platform via flexible Telco & Government Customers Cloud Provider environments 5

For personal use only First Half Results FY2017 6

1HFY17 Statement of Profit & Loss Financial Results CONSOLIDATED For personal use only • Total Expenses in 1HFY17 include $671k non cash share/option based remuneration costs. (nil in 1HFY16) 1HFY17 1HFY16 $’000s $’000s • Engineering and Development - Increased resources strengthening Revenue FCT’s Intellectual Property and 2,851 2,599 Sales revenue product & professional service (1,025) (873) Cost of sales delivery capability Gross profit 1,826 1,725 • Multi Public Cloud (AWS) and Private Cloud (Telstra) Solution Other income 407 121 • Extended multi-vendor capabilities Expenses • Enhanced Email and Web content Sales and marketing (1,223) (1,098) security solutions Engineering and development (1,529) (611) General and administration (2,358) (1,714) Listing expenses (83) - Finance costs (20) (60) Total expenses (5,213) (3,483) (2,980) (1,636) Loss before income tax benefit 7

1HFY17 Balance Sheet For personal use only H1 2017 FY 2016 Item $’000s $’000s Key financial indicators; Current Assets • Excellent debtor management – 3,169 5,772 Cash and cash equivalent 34.8 days outstanding 3,467 2,659 Trade and other receivable 1,129 760 Other current asset • Cash on hand includes foreign 7,765 9,191 Total Current Assets currency to minimise impact of Non-Current Assets adverse FX movements on USD PP&E 791 710 purchases Intangibles 2,338 2,088 • Licences purchased in advance Other non-current assets 1,348 1,042 backed by income received in Total Non-Current Assets 4,477 3,840 advance Total Assets 12,242 13,031 • Subsequent to the period end, Current Liabilities the company’s cash balance Trade and other Payables 2,623 1,901 also reflects $0.6M received in Borrowings 222 293 relation research and Employee Benefits 452 371 Other 873 564 development tax incentives Total Current Liabilities 4,170 3,129 Non-Current Liabilities Borrowings 185 287 Employee Benefits 41 60 Provisions 152 152 Deferred R&D income 575 373 Income in advance 677 301 Total Non-Current Liabilities 1,630 1,173 Total Liabilities 5,800 4,302 Net Assets 6,442 8,729 8

For personal use only Business Update 9

1HFY17 Achievements For personal use only New Products • Announcement of FirstCloud – a SMB targeted public NGFW solution based on public cloud utility (AWS) 31 53 • The development and release of the Palo Alto Nework’s Dec 15 Dec 16 Orchestration and Boot- People New Products Completed Listing Strapping technology for fast Team to deliver Launched Process and easy NGFW deployment • The addition of C-Level Threat Protection to FirstWave’s email security service offering • Creation of next generation Government Cloud service • The training and enablement of Telstra’s cloud and security 0 45 specialists on new and updated service offerings along with Dec 15 Dec 16 100’s of associated Telstra Telstra Telstra sellers Channel Enabled NGFW Sales 10

First Half Achievements OPERATIONAL HIGHLIGHTS For personal use only Sales & Marketing R&D Operations ü Release of R0.4 reference architecture - ü Telstra G-Cloud platform delivered and ü Telstra GPA (NGFW) is live One-touch management and orchestration IRAP certified ü Telstra sales channel enabled including bootstrap technology release ü FirstCloud product tested and ready for ü Sales - 45 GPA’s, Qantas, DECD SA ü Development of public cloud NGFW solution market ü Support contract for Australia nodes ü Development and implementation of C- ü Successful platform build in Telstra next Level email protection filter in Government & generation cloud infrastructure ü Accepted on to NSW Govt Procurement Enterprise customers ü State Government dedicated platform Scheme & Fed Govt panel for the Dept of ü Accreditation of latest Palo Alto Networks Infrastructure and Regional Development deployment commenced Operating System ü ISO2700/9001 certification ü Cisco Uniqube engagement to explore ü Development of Telstra Government Cloud integrating our email IP Portal ü Accreditation of independent security penetration testing by Telstra 11

1HFY17 Growth & Momentum WHAT’S DRIVING REVENUE GROWTH? For personal use only Key Growth Revenue Drivers Next Generation Firewall launched in Q1. Demand for evolving email and web content security services to address the ever-changing security landscape for e.g. socially Increase Node engineered threats Signing of Enterprise & Footprint Government Customers Large Enterprise Sales – Enterprise and Government contracts Penetration of SME Market Nodes – new state of art Telstra cloud infrastructure, dedicated government deployments Growing SME NGFW Customer Base Sales 12

ANNUALISED MONTHLY RECURRING REVENUE (AMRR)* For personal use only Commentary: The AMRR of FirstWave continued to increase during Q2 FY 2017 to Annualised Monthly Recurring Revenue (AMRR) $5.3 million • Point 1 An increase of 32% relative to the $5.3 same period from a year ago Recurring revenues in the first half • Point 2 of FY17 equating to 92% of total $4.6 revenue, versus an average of approximately 73% over the past 12 Millions months • Point 3 $4.0 $3.8 $3.6 • Point 4 • Point 5 Q2FY15 Q4FY15 Q2FY16 Q4FY16 Q2FY17 13 * Refer definition in Appendix

Our Opportunity EXITING ANNUALISED RECURRING REVENUE 1,2 For personal use only Enterprise & Government (E&G) FirstWave has a target to penetrate Exiting ARR Opportunity – presented to FY 2020 ($M) 20% of Telstra’s E&G addressable market for cloud security services by - 10.0 20.0 30.0 40.0 50.0 60.0 the end of FY2020, representing 700 Telstra customers. 30/06/17 The Company estimates that average Monthly Recurring Revenue (MRR*) per customer will be approximately $3,200 resulting in an exiting Annualised Recurring Revenue (ARR*) 30/06/18 of $26.9M as at 30 June 2020 based on 700 customers. Small Medium Enterprise (SME) 30/06/19 FirstWave has a target to penetrate 10% of Telstra’s SME addressable market for cloud security services by the end of FY2021, recognising the later entry to this market relative to 30/06/20 E&G market, representing 2,000 Telstra customers. The Company estimates that average E&G SME MRR per customer will be approximately $1,200 resulting in an exiting ARR of $28.8M as at 30 June NOTE: The above annualised exiting recurring revenue scenario is illustrative only and is based on hypothetical assumptions. These statements do not constitute a forecast or 2021 based on 2,000 customers. projections nor do they represent revenue in a financial year. These statements reflect views only as of the date of this announcement. 1. The number of Telstra clients, speed of take-up and MRR may vary from the assumptions reflected above. 2. Based on the provision of existing service offerings only to domestic Telstra customers (E&G and SME) and not including additional product development and professional services revenue streams. 14

For personal use only Priorities 15

Company Focus H2FY17 For personal use only Operating cash International Innovate improving Annualised Exiting flow break even expansion offshore customer experience Recurring Revenue in Q4 FY2017 of greater than Operationalise Bharti Airtel Data mining of vendor agnostic eco- $10.0M heading into (Nxtra Data) system FY18 Continue development of Broaden capability to embrace more opportunities with targeted of Cloud Security Service international Telcos requirements Continue the exploration of FCT IP with global security vendors