Corero Network Security : Annual Report and Accounts for the year ended 31 December 2022

Corero is dedicated to improving

the security and availability of the internet through the deployment of innovative Distributed

Denial of Service (DDoS) protection solutions.

DDOS

PROTECTION

WITHOUT THE

DOWNTIME.

We are specialists in automatic detection and mitigation solutions, that include network visibility, analytics, and reporting tools. Corero's technology provides scalable protection capabilities against both external DDoS attackers and internal DDoS threats, in even the most complex edge and subscriber environments, ensuring internet service availability and uptime.

We protect thousands of organisations worldwide, across many verticals. Our customers are primarily internet service providers, hosting providers, cloud providers and SaaS providers.

We are deployed internationally and, through our own teams and strategic partners, we continue to expand our footprint.

CONTENTS

Overview

1. 2022 Highlights
2. At a glance

1. Business Model

1. Case study: Dakota Carrier

Network

08 Market overview

1. 2022 Corero DDos Threat Intelligence Report
2. Corero Explained

1. Customer proposition
2. Investor proposition

Strategic Report

1. Executive Chairman's Review

1. Financial Review

1. Key Performance Indicators

1. Key Stakeholders

1. Section 172 Statement

1. Principal Risks and Uncertainties

1. Environmental, Social and Governance Report

Governance

28 Board of Directors

1. Executive Chairman's Corporate Governance Introduction
2. QCA Code Compliance
3. Corporate Governance Report

1. Board Performance and Remuneration Policy
2. Board Committee Reports
3. Directors' Report

1. Statement of Directors' Responsibilities
2. Independent Auditor's Report

Financial Statements and associated notes

1. Consolidated Income Statement
2. Consolidated Statement of Comprehensive Income
3. Consolidated Statement of Financial Position
4. Company Statement of Financial Position
5. Consolidated Statement of Cash Flows
6. Consolidated Statement of Changes in Equity
7. Company Statement of Changes in Equity
8. Notes to the Financial Statements

Corporate Directory

1. Glossary
2. Corporate Directory

FOR MORE

INFORMATION VISIT

corero.com

OPERATIONAL HIGHLIGHTS

• Secured 32 new customers in the year
• Customer support contract renewal rate of 98% (2021: 96%) demonstrating both the quality of Corero solutions and customer service
• Annualised Recurring Revenues1 ("ARR") increased to $14.4 million (2021: $12.8 million), underpinning future revenues and reinforcing the importance of Corero's solutions for our customers
• The Group remains committed to ongoing investment across its technology platform and resource expansion to strengthen its market-leading position

FINANCIAL HIGHLIGHTS

EBITDA2

$2.6m

PROFIT/(LOSS)

BEFORE TAXATION

$0.4m

-$1.7m

$4.0m

$2.6m

-$1.4m

$1.4m

$0.4m

-$4.0m

-$5.2m

-$6.6m

-$3.2m

2018 2019 2020 2021 2022

2018 2019 2020 2021 2022

WHAT WE DO

• Prevent downtime in the event of a DDoS attack
• Eliminate the need for operator intervention by automatically mitigating over 98% attacks
• Enable service providers to deliver added value to their customers by offering DDoS protection services

Corero is dedicated to improving the security and availability

of the internet through the deployment of innovative DDoS protection solutions.

WHY WE DO IT

• To make the internet a safer place by protecting organisations from damaging DDoS attacks and the downtime that comes with it.
• Corero customers benefit from rapid attack discovery, rapid mitigation, and a dynamic, flexible solution.

OUR MISSION

Corero's mission is to be our customer's trusted partner on their journey to implement effective DDOS protection matched to their needs.

HOW WE DO IT

• Intelligently automated solution that protects from DDoS attacks in under
  a second.
• Most flexible and highly scalable deployment options to meet the needs of any business.
• Comprehensive visibility with reporting and alerting for clear, actionable intelligence on the DDoS attack activity.

RESPONSIBLE

BUSINESS

Corero aspires to carry out its business to the highest ethical standards, treating customers, partners, suppliers, and employees in a professional, courteous and honest manner.

Corero is committed to promoting sustainability. We aim to promote good sustainability practice, to carry out our operations in a way which manages and minimises any adverse environmental impacts.

Our products are used by thousands of businesses throughout the world to protect against disruptions that could have adverse economic, health, well-being and environmental consequences for the users and customers of those businesses (often in a mission critical way) and the knock-on effects to populations as-a-whole.

OUR VISION

In an internet connected world, every business, application and individual is protected from DDoS attacks.

ACHIEVED THROUGH

OUR PURPOSE

To best protect customers from the damaging impact of DDoS cyber security attacks.

OUR FOCUS

Maintain our superior technological performance while delivering sustainable, long-term value to our stakeholders.

OUR VALUES

Values and beliefs underpin the strategy. These are lived to become the culture:

Customers First; Technology Leadership &

Innovation; Operational Excellence; Integrity;

Our People, Empowerment & Teamwork

DELIVERED BY

OUR STRATEGIC GOALS

1. Grow our pipeline and corresponding revenue
2. Leverage our existing reseller and strategic partnerships and develop new ones
3. Target and expand our Ideal Customer Profile ('ICP') relationships
4. Better monetise our existing services and introduce new services
5. Amplify our demand generation programs
6. Continue to enhance our technological innovation leadership

ENABLED BY

OUR BUSINESS MODEL

Please see our business model on pages 4 to 5.

SUPPORTED BY

OUR SUPPORTERS

Our supporters are our customers; our partners including strategic alliance partners; our suppliers, our investors and our employees.