SENETAS CORPORATION LIMITED For personal use only
19 November 2021
The Manager, Listings
ASX Limited
Company Announcements Office
Level 4 Exchange Centre
20 Bridge Street
SYDNEY NSW 2000
Dear Sir/Madam
2021 Annual General Meeting - Chairman's Address and CEO Presentation
We attach a copy of the Chairman's address and the CEO's presentation to be delivered to shareholders at the Senetas Corporation Limited virtual Annual General Meeting to be held today, Friday, 19 November 2021 at 10:30 am (Melbourne time).
Yours sincerely
Brendan Case
Company Secretary
For personal use only
SENETAS CORPORATION LIMITED
AGM - 19 NOVEMBER 2021
CHAIRMAN'S ADDRESS
The past year has seen another significant step forward in Senetas's journey to broaden its revenue base and invest in higher growth cyber security technologies.
Whilst our consolidated financial results for FY2021 were impacted by early stage losses from our investment in Votiro, underlying business performance was strong. Andrew Wilson will cover the 2021 year results in more detail in his CEO presentation, however, with group revenue up 13% on a constant currency basis, and underlying profit before tax for the Senetas business segment up over 70% on a constant currency basis, the business is in a very sound financial position. And we are very excited about the outlook for our investment in Votiro.
The risk of cyber attack at a personal, government and corporate level poses a security threat greater than any we have previously experienced, and the potential financial losses and impacts on critical infrastructure are enormous. One expert analysis of cyber security incidents targeting small, medium and large Australian businesses that was referenced in the Federal Government's Cyber Security Strategy paper, estimated a potential cost to the economy of $29 billion per year in Australia alone - and cyber attacks are clearly a global problem.
Senetas identified this problem some years ago and looked for suitable investments that would benefit from Senetas's experience in cybersecurity and our key partnerships. We have now invested over US$12 million in Votiro since late 2018 and have a controlling shareholding of just under 70%. The rise of ransomware attacks is one of the most serious global cybersecurity threats and Votiro's Secure File Gateway solution is effective at neutralising those threats - including zero day threats - with 100% efficacy, zero breaches and no latency - providing Senetas with immediate access to a high growth and scalable market opportunity.
Votiro's business model is SAAS based contracts with high end customers (government and large enterprises) with annualised recurrent payments usually initially over 3 to 4 years.
Francis Galbally, Chairman | 1 |
For personal use only
SENETAS CORPORATION LIMITED
AGM - 19 NOVEMBER 2021
Over the past 18 months Votiro has been restructured with a key focus on sales execution targeting priority markets. A highly experienced management team has been recruited and our new CEO, Ravi Srinivasan, who has outstanding experience in cybersecurity, has commenced in recent months. Votiro has also now established its commercial head office the US which is our key target market.
Again, Andrew will speak in more detail about Votiro's performance in his CEO presentation, but the September 2021 quarter was Votiro's strongest for the calendar year, and almost 80% of September quarter billings were in new and upsell deals.
Since the end of September 2021, Votiro has concluded additional new deals with two agencies of an Asia Pacific government - one of which was Votiro's largest sale to an end client in its history. This new contract for the Secure File Gateway was signed recently with a value to Votiro of over US$1 million per annum for a minimum of 3 years.
This contract is particularly exciting for Votiro because it realises some of the momentum building within the business recently, with strong growth in customer engagement and a record level of proof of concept trials underway through the past 6 months. It also reaffirms the confidence large organisations have in Votiro's Positive Selection technology and adds to the broad range of successful case studies for Votiro across both commercial and government organisations.
Votiro's CDR technology is world leading and it recently won the award for the best overall email security solution of the year in the CyberSecurity Breakthrough Awards Program. CyberSecurity Breakthrough is a leading independent market intelligence organisation that recognises the top companies, technologies and products in the global information security market, and exemplifies the best in cybersecurity technology solutions across the globe.
As we look forward, Senetas is on the cusp of what I think is its most exciting period since I founded the Company more than 20 years ago. Whilst there are some constraints on hardware encryptor sales over the next year due to the global shortage of semiconductors that we outlined in our FY2021 results, our hardware sales pipeline is as strong as its been in many years. The pipeline has increased more than 50% from the same time last year reflecting the successful integration of Gemalto with Thales and the
Francis Galbally, Chairman | 2 |
For personal use only
SENETAS CORPORATION LIMITED
AGM - 19 NOVEMBER 2021
leveraging of the increased sales force offered by the combined group. We are also seeing very encouraging early signs for SureDrop.
And off the back of the very significant recent contract wins, the outlook for Votiro is very promising. Votiro's pipeline of sales opportunities is continuing to grow with a strong schedule of proof of concept trials through the December quarter and into 2022, and we expect to win some important new contracts within the next few months. With this strong sales momentum, Votiro's annual recurring revenue is anticipated to double in the 2022 calendar year.
I would now like to hand over our Andrew Wilson for his CEO presentation.
Francis Galbally, Chairman | 3 |
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Senetas Corporation Limited published this content on 18 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 November 2021 23:12:13 UTC.
