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MAY 2020 This presentation and the accompanying slides (the - PowerPoint PPT Presentation

Q4 & FY20 MAY 2020 This presentation and the accompanying slides (the Presentation), which have been prepared by Quick Heal Safe Harbor Technologies Ltd. (the Company), have been prepared solely for information purposes and do not


  1. Q4 & FY20 MAY 2020

  2. This presentation and the accompanying slides (the “Presentation”), which have been prepared by Quick Heal Safe Harbor Technologies Ltd. (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company. This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. This presentation contains certain forward-looking statements concerning the Company’s future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, competition (both domestic and international), economic growth in India and abroad, ability to attract and retain highly skilled professionals, time and cost over runs on contracts, our ability to manage our international operations, government policies and actions regulations, interest and other fiscal costs generally prevailing in the economy. The Company does not undertake to make any announcement in case any of these forward-looking statements become materially incorrect in future or update any forward-looking statements made from time to time by or on behalf of the Company. Quick Heal acknowledges the ownership rights of third parties to the intellectual property rights mentioned in this document. Other logos/trademarks mentioned in the presentation belongs to respective owners and used only for reference purpose. 2

  3. Q4FY20 & FY20 Earnings Highlights Company Overview Industry Overview The Quick Heal Advantage Q4FY20 & FY20 Earnings

  4. Our FY 2020 financial performance was weakened due to slowdown in the economy which lead to credit crunch among MSME coupled with headwinds at our channel partners. The impact further worsened by COVID-19 pandemic which lead to lockdown in entire country REVENUE EBITDA PAT Average revenue per licences for FY20: Q4FY20 Revenue at FY20 EBITDA at FY20 PAT at ₹ 914 mln ₹ 744 mln ₹ 643 mln Retail at ₹ 518 down 28.5%from ₹ 1,279 mln down 19.0% from ₹ 918 mln in down 25.3% from ₹ 860 mln in Q4FY19 in FY19 FY19 Up 11.9% from FY19 EBITDA marginat PAT marginat FY20 Revenue at Enterprise at ₹ 2,861 mln 31.9% 26.0% ₹ 623 down 9.1% from ₹ 3,149 mln in FY20 down 867bps from In FY20 down 315bps from Up 10.3%from FY19 40.6%in FY19 29.2% in FY19 in FY19 New enterprise customers Total with more than 500 users 61 added in FY20: >=500 to <=999 34 >=1,000 to <=4,999 Enterprise + Retail 80% Government 20% 5 >=5,000 5

  5. 31.9% Comprehensive FY20 EBITDA Product Portfolio ₹ 2.86 bln Presence across B2C, B2B & B2G segments FY20 Revenue Strong Debt Free Distribution Footprint Balance Sheet across India 25+ Years State-of-the-art of Innovation R&D Centre in Cybersecurity Industry Vision Mission To be the trusted global leader in Secure our customers by providing innovative, most securing the digital world preferred and valued security solutions, services and knowledge Protect information and interactions on all types of networks, devices & things globally Build a healthy business and organization 7

  6. Innovative AI driven Threat protection Secured protection & securing PCs, for smart Internet of network phones Protecting & emails Things (IoT) and tablets Protected Ensured data, early a safe transactions generations online & cloud of PCs experience transitions 1993-95 1996-00 2001-05 2006-10 2011-16 2017-20 8

  7. India’s first listed cybersecurity • products company Scripting a new success story A “Make in India” product • configured to secure countries, cities and companies Quick Heal – undisputed leader • in the retail segment Seqrite making inroads in the • SMB & enterprise segment Quick Heal Security Labs - a • team of highly efficient security researchers, analysts and engineers leverages a combination of AI, cloud and patented technologies to ₹ 2,422 mln ₹ 609 mln deliver timely and advanced protection FY20 Revenue* FY20 Revenue* Solutions to secure across • platforms 9 *Based on net revenues before adjusting for sales incentives

  8. Shareholding structure – 31 st March 2020 Shareholder Information (as on 31 st Mar 2020) NSE Ticker QUICKHEAL BSE Ticker 539678 Market Cap ( ₹ mln) 5,217 Public % Free-float 27.17% 19.76% Free-float market cap ( ₹ mln) 1,417 Total Debt ( ₹ mln) - Institutions 7.41% Cash & Cash Equivalents ( ₹ mln) 3,877 Enterprise Value ( ₹ mln) 1,340 Shares Outstanding 6,42,03,618 72.83% 3M ADTV (Shares) 2,34,620 Promoter & 3M ADTV ( ₹ mln) 28.0 Promoter Group (Shares Pledged - Nil) Industry IT Software Products 10

  9. 4.5 Million Industries most at risk Cities most affected Ransomware Per day: 12,352 High Maharashtra Per Hour: 515 Per Minute: 9 Delhi NCR West Bengal 125 Million Karnataka Manufacturing Exploit Gujarat Per day: 3,43,699 Education Per Hour: 14,321 Uttar Pradesh Per Minute: 239 Tamil Nadu Professional Services 2019 detection Rajasthan statistics Telangana Government 90 Million Madhya Pradesh PUA & Adware Healthcare Haryana Per day: 2,46,539 Per Hour: 10,272 Kerala IT/ITES Per Minute: 171 Odisha 1.08 Billion Andhra Pradesh Malware BFSI Bihar Per day: 29,79,258 16 Million Automobiles Punjab Per Hour: 1,24,136 Cryptojacking Per Minute: 2,069 Himachal Pradesh 0 Per day: 44,704 Media & Entertainment Uttarakhand Per Hour: 1,863 Per Minute: 31 Chandigarh Logistics Kashmir 172 Chhattisgarh 1M 2M 3M 4M 5M 6M 7M 8M 9M Million Infector Assam Per day: 471,408 Jharkhand Per Hour: 19,642 Low Goa Per Minute: 372 12 Source: Seqrite Threat Report 2020 Source: Quick Heal Annual Threat Report 2020

  10. Selected cyber attack incidents in 2019 Detection statistics for Mobile WHO reports five fold increase in cyber-attacks, urges vigilance Malware: 639K Per Day: 1,752 Per Hour: 73 Per Minute: 1.22 Adware: 125K PUA: 360K Per Day: 344 Per Day: 987 Per Hour: 14 Per Hour: 41 Per Minute: 0.24 Per Minute: 0.69 ₹ 119 mln The Average cost of a data breach in India. An increase of 7.9% from 2017 Source: PWC & DSCI report – Cybersecurity India Market Source: Reputed News Outlets 13

  11. Growth In Country Digital Adoption Index India # 1 % growth, 2014-17 1.2b People enrolled in the world’s largest globally unique digital identity program 99% 90% India # 2 Indonesia India globally, behind China 12.3b 1.17b 560m 354m 294m Application Wireless Internet Smartphone Users downloads phone subscribers devices engaged in 45% 44% 43% in 2018 subscribers social media China Russia & Japan Digital usage in India is soaring as costs tumble Germany 36% - Italy 35% - South Africa & France 31% - South Korea 26.2 560m 18 8,320mb 0.1% 30% - United Kingdom, Brazil & USA 27% - Sweden Smartphones Internet users Cashless Monthly data Monthly data per 100 people in 2018 transaction per consumption per price (per 1gb as 25% - Canada & Australia in 2018 compared to person in 2018 unique connection % of monthly GDP) in 24% - Singapore compared to 239m in 2014 compared to 2.2 in 2018 compared to 2018 5.4 in 2014 in 2014 86mb in 2014 compared to 6.1% in 14 Source: McKinsey Institute – Digital India, March 2019 2014

  12. Expected growth of Cybersecurity products in India Expected sectoral expenditure on Cybersecurity (USD mln) (USD mln) Addressable market 1,643 for Quick Heal is 3,053 USD 1.6 bln Data security CAGR 22.2% 1,977 1,029 Endpoint security BFSI CAGR 19.1% CAGR 19.1% Identity & access IT/ITeS management CAGR 16.3% CAGR 16.3% Government Network Security CAGR 15.3% CAGR 15.3% Security IDR Others CAGR 14.8% CAGR 14.6% 2019 2022 2019 2022 Cybersecurity market in India is expected to grow at ~16% CAGR between 2019 to 2022 and become a $3 bln market with security product market estimated to grow at ~17% to become $1.6 bln market. Quick Heal is well placed to capitalise on this opportunity. 15 Source: PWC & DSCI report – Cyber Security India Market

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