Company Presentation cyan AG - May 2020 - cyan Digital ...
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Company Presentation cyan AG – May 2020
Group highlights
cyan is a leading European cybersecurity provider that caters to Mobile
Network Operators and Internet Service Providers (MNOs & ISPs), Mobile
Virtual Network Operators (MVNOs), insurers and banks
cyan offers its seamless, holistic cybersecurity solutions via a white-label
B2B2C approach to its clients’ large end-customer base, allowing them to
generate additional revenues and differentiate themselves from their
competition
cyan is the only cybersecurity provider servicing mobile endpoints with net-
integrated solutions supplemented with a broad range of features for
endpoint as well as fixed line and IoT protection
cyan has a broad blue-chip client portfolio and has won significant
contracts with MNOs such as Orange or Deutsche Telecom and financial
services companies such as Wirecard and Aon, which will support
This is cyan. significant growth in the near-to-mid-term
In FY2019, cyan reached EUR 33m in total revenues and EUR 12m in
EBITDA
© cyan Digital Security 2020 2
Management
Peter Arnoth Markus Cserna Michael Sieghart
CEO CTO CFO
CEO of cyan AG CTO of cyan AG CFO of cyan AG
CEO of cyan Security Group CEO of I-New Mobile Solutions AG Partner and CFO, Petrus Advisers
(2011 - today) (2019 - today) (2010 - 2017)
Member of the Board E-Plus Mobilfunk CTO of cyan Security Group Member of the Board, Wiener Privatbank SE
(2006 - 2007) (2011 - today) (2013 - 2014)
Member of the Board T-Mobile Austria Founder and CTO of cyan Networks Managing Director, Deutsche Bank AG
(1998 - 2006) (2006 - today) (1997 - 2009)
© cyan Digital Security 2020 3
Mobile phone usage
Use of mobile phones for sensitive business
Mobile end-user activity (%)
Using online Online Online
5.2bn people worldwide already use a mobile phone payment systems shopping banking
Half of world’s internet connections via smartphones 51% 49%
46% 44%
40%
36%
33%
27%
23%
Number of unique mobile subscribers expected 5.9bn
in 2025
2016A 2018A 2020E 2016A 2018A 2020E 2016A 2018A 2020E
Growing awareness and demand for cybersecurity
The use of SIM cards worldwide will expand to 9.2bn
(34.4bn incl. IoT) by 2025 Growing smartphone penetration globally (e.g. 90% for US in ‘25)
Source: GSMA Intelligence, GlobalData
© cyan Digital Security 2020 4
Potential cyberthreats
Cryptomining Total mobile malware
Pop-up web browser
in m detections1)
Harmful Content Financial Services Fraud 120
Violence and pornography Scam
100
E-Commerce Communication
80
Identity Theft Phishing
Phishing e-mails 60
Credit card theft
Social Media Control of 40
Alarm Systems
20
Digital Content
Clickjacking
Ransomware Malicious code in
Data encryption hidden buttons
0
2016 2017 2018
Malware
Worms, trojans, viruses (1) Global detections of malware such as backdoors, crypto-mining, fake apps, banking trojans etc.
© cyan Digital Security 2020 5
Total addressable market: 2.6 billion potential customers
Breakdown of total addressable mobile cybersecurity market (in billion end customers)
4.4
9.6
1.3
1.3
5.2
2.6
Total SIM cards Machine2Machine, IoT Unique global subscribers Unlikely customers1) Total addressable market
Source: GSMA Intelligence, GlobalData
Note: for simplicity reasons, the breakdown focuses on cybersecurity for mobile phones only – IoT (usually only protectable with the OnNet approach) will become a big topic in the mid-term future
(1) Accounts for feature phones and very low-income countries as well as for customers in unlikely markets with different security standards such as China or Russia (both roughly 1.3bn)
© cyan Digital Security 2020 6
OnNet expected to significantly outgrow Endpoint Security
(Mobile) Endpoint Security1) Total mobile security market in 2023E MNO OnNet Security2)
EUR EUR
bn Endpoint bn
protection
28%
4.1
EUR 5.7bn MNO on-net
72%
+639%
+83% 1.6
0.9
0.5
Significant additional growth potential in the
endpoint market from selling endpoint protection
on top of OnNet security solution (bundling)
2018A 2023E 2018A 2023E
USP: seamless security by cyan
Source: Globally leading market and strategy consultancy
(1) For smartphones only;
(2) For smartphones and PCs (cannot be separated logically)
© cyan Digital Security 2020 7
Mobile cybersecurity market overview: technological view
DNS technology
Scalability
SEAMLESS SECURITY APPROACH Easy to roll-out
DNS technology
Suitable for mass market
Resource effective solution
Future (5G ready) proven
DoH/DoT ready
Device and OS independent
1)
DPI technology
1)
Machine & capex intensive
DPI technology
DPI compromises user experience
1) More and more encrypted data limit reliability
(https)
5G will lead to heavy capacity problems
Standalone app-based solutions
OnNet only Integrated OnNet & Endpoint Device and OS dependent
Requires installation, configuration & frequent
Revenue generation per customer updates
Typically low penetration
Note: DoT: DNS-over-TLS; DoH: DNS-over-HTTPS; DNS: Domain Name System; DPI: Deep Package Inspection MNO loses cyber customer to third party
(1) Integrated not on a stand-alone basis, only due to collaboration with an endpoint partner
© cyan Digital Security 2020 8
cyan‘s Seamless Security
DNS Integrated proprietary White-labelled Single sign-on for Solutions for
Scalability security data base business model end-customer Smartphones PCs Fixed IoT Kids
Integration into client’s Customer convenience
Own research/sourcing
DNS vs. DPI marketing (white-label) when logging in /
vs. buying lists only
vs. own brand strategy signing up for service
Only provider rendering a
full future ready mobile
cybersecurity spectrum
SEAMLESS SECURITY
With 3rd party 3rd 3rd 3rd 3rd
/ With 3rd party only / n/a
only party party party party
With 3rd party only Partially With 3rd party only
With 3rd party 3rd 3rd 3rd 3rd
DPI only party party party party
DNS providers
OnNet:
Endpoint:
Endpoint
providers
n/a
© cyan Digital Security 2020 9
Technological advantage
The picture can't be displayed.
Active sourcing Continuous data flow Artificial intelligence Cooperation
Sourcing via live analysis with >1,000bn anonymized data Own patented AI algorithms plus Cooperation with
~200 virtual data centers requests monthly human manpower security partners
25 proven methods of (Big Data) analysis
Security filter database
Highly scalable and performance efficient DNS approach
# >300m entries +1.5m entries monthly Continuous updates Self-reinforcing
Constantly evolving database to Update frequency: 4 hours
Ensuring quality of solution More users generate more data
account for new threats Real-time updates soon
© cyan Digital Security 2020 10Products and solutions for our clients
Segment Cybersecurity BSS/OSS
Network Operators Security Endpoint Security MVNE
Selected
clients
Clean Pipe DNS OnNet Security Endpoint BSS/OSS
Blocking of harmful and illegal content Protection against harmful content on App-based security solution to Lightweight MVNE include billing,
Products for the whole subscriber base the web within the operator’s network detect cyberthreats and bad network integration, provisioning,
Increased performance, better user Fully network-integrated cybersecurity content on device touchpoints, etc.
experience (faster loading of pages) including child protection features Target industries: Insurers, Fin- Target industries: MVNE platforms,
Target industries: MNOs/MVNOs Target industries: MNOs/MVNOs/ISPs tech, banks, retailers MVNOs
MNOs: Lower network load allows to One-stop solution for MVNOs and
Generate additional revenue by
Advant- defer scheduled capex White-labelled B2B2C model smaller MNO B-brands
offering cybersecurity as a VAS
ages MVNOs: Reduction of data- purchase High scalability High scalability through cloud based
No separate mobile app required1)
costs creating positive EBITDA effect services
10%
Rev.
share 25%
65%
2023E
(1) Integrated into operator’s app; end-customer has access to cyan’s solutions after updating the operator’s app
© cyan Digital Security 2020 11Clean Pipe DNS
Clean Pipe DNS in a nutshell Product snapshot
End-customer USPs Provider USPs Data traffic optimization for MNO and MVNO
Better user Network-integrated content filter solution
experience More satisfied
(blocking of customers Blocks harmful and illegal content (phishing, malware
unwanted ads) and trackers)
Reduces the amount of data used
No app or any
Cover whole end- Marketed directly to MNOs/MVNOs and is not visible to
other installation
customer base end-customer
required
Not user-specific: all end customers are subject to Clean
Pipe DNS
Clean Pipe EBITDA effect for
Privacy assured DNS Clean Pipe DNS constitutes an entry product for cyan’s
MVNOs
OnNet Security & Endpoint solutions
Shorter loading Minimal
times integration points
© cyan Digital Security 2020 12OnNet Security
OnNet Security in a nutshell Product snapshot
USPs to clients and end-customers
End-customers fully protected when surfing on mobile
devices using their MNOs or MVNOs network
No downloads
Fully network integrated solution After software integration, OnNet Security can be sold to
all end-customers
White-label “White-labeled” product (OnNet Security is provided
Fully branded in look-and-feel of under the client’s look-and-feel)
network operator
OnNet Security’s protection is always up-to-date (cyan’s
Compatibility database updated at least six times a day)
Responsive design for every device &
OS (incl. Android, iOS, Windows)
Real-time protection
End-customer is redirected to
blocking screen
Add-ons
+ Push messages, individual warnings
and monthly reports on requests
(1) Exemplary price charged by MNO to end-customer, cyan is compensated with a revenue share or license fee model
© cyan Digital Security 2020 13Endpoint Protection
Endpoint Protection in a nutshell Product snapshot
Premium cybersecurity solution typically
Endpoint Protection also protects the end-customer when
surfing in Wi-Fi networks
Comes as part of an update of the operator’s existing app
(implemented via SDK)
Targets cybersecurity-aware end-customers
Contains anti-virus protection for apps, malware scans,
website checking or identity protection features
Ready-set-go Premium security
Integration of security module in
existing client app
+ Additional security features
compared to OnNet Security
White-label Comprehensive
Fully branded in look-and-feel of Protection includes Wi-Fi networks
client as well as mobile networks
(1) Exemplary price charged by MNO to end-customer which includes OnNet Security and Endpoint features, cyan is compensated with a revenue share or license fee model
© cyan Digital Security 2020 14BSS/OSS
BSS/OSS services in a nutshell Product snapshot
1 Functions such as campaign and sales channel
management
BEST MVNO BEST MVNE
MVNO SOLUTION VENDOR ENABLER OF MVNOs
2016
2 Covers product lifecycle management, product
2014-2015
performance management, etc.
cyan BSS/OSS platform
Security as the overarching element combined with:
3 Customer information management, order management
and customer self care
1 Front ends
4 Service performance management and resource
2 Product management activation
3 CRM EAI 5 Invoicing and receivables management
Billing
6
4 OSS 5 Asset management and data analytics
7
6 ESS 7 Ensures proper functioning and connection of the
platform
End-customers
Note: BSS = Business Support Systems; OSS = Operations Support Systems; CRM = Customer Relationship Management; EAI = Enterprise Application Integration; ESS = Enterprise Service Systems
© cyan Digital Security 2020 15Segment pipeline status
Segmentation
Cybersecurity BSS/OSS
Network Operators Security Endpoint Security
Close to signing; 4 (2)1) Close to signing; 3 (2) Close to signing; 3 (1) NDA; 1 (3)1)
NDA; 8 (3) NDA; 4 (4)
(vs. last update)1)
Pipeline status
MNO Endpoint BSS/OSS
leads: 33 leads: 23 leads: 15
PoC; 3 PoC; 6
(2) (3)
RfP / RfQ; 18 (4) RfP / RfQ; 10 RfP / RfQ; 11 (1)
(2)1)
(1) Compared to last update of sales pipeline (2H19); valid for all figures presented in brackets
© cyan Digital Security 2020 16Defined Orange roll-out & next steps
2019 2020 2021 2022
MVP 1 MVP 2 IoT MVNO
Orange France gets network Orange Group roll-out in Europe OnNet Security protection for IoT OnNet Security protection for
security & endpoint B2B devices MVNOs within the Orange network
Orange France roll-out of B2C
Orange Europe gets Orange protect products Endpoint Protection for IoT Significant increase of addressable
and Orange protect+ for B2C user base
Launch of additional Orange
countries
© cyan Digital Security 2020 17Shareholder structure
Management Alexander Schütz
7.9% 14.7%
Apeiron Ltd
13.3%
Total number of
shares outstanding:
9,774,538
Tansanit St.
10.3%
Free float
53.8%
Note: Based on shares held by individual investors at cyan’s AGM in July 2019
© cyan Digital Security 2020 18Group financials
Key highlights 2019 Key financials
Group total revenues of EUR 32.5m1) for FY2019 in EUR million 2019 2018
Earnings Figures
(vs. FY2018: EUR 20.7m; +57%) and EBITDA of EUR 11.7m
Total revenues 32.5 20.7
Segment revenues 2019: BSS/OSS EUR 18.4m and cybersecurity EUR EBITDA 11.7 3.0
EBITDA-Margin2) 44% 34%
8.3m with segment EBITDA margins of 63% and 44% respectively3)
EBIT 5.5 -0.9
Completion of capital increase of EUR 25m (resulting in an end-of-year EBIT-Margin2) 21% -11%
net cash position of EUR 5.1m) Net income/loss 4.5 -0.6
Earnings per share 0.49 -0.07
Successful integration at Orange France, launch expected in second Segment Figures
half of 2020 Revenue BSS/OSS 18.4 5.0
Revenue Cybersecurity 8.3 3.9
Roll-out in other Orange countries being prepared EBITDA BSS/OSS 11.5 5.9
EBITDA Cybersecurity 3.7 -0.1
Signing of substantial agreements with ACN Group and Wirecard;
Cash Flow Figures
Magenta Austria (formerly T-Mobile Austria) prematurely extended its Operating cash flow -5.8 -4.1
contract Investment cash flow 0.5 -17.5
Financing cash flow 11.8 20.0
Completion of i-new integration into cyan (including stabilization of Balance Sheet Figures
Latin American BSS/OSS platforms) Assets total 99.3 83.3
Equity 82.2 50.4
(1) Sales revenue EUR 26.8m+other earnings EUR 2.1m+changes in (un)finished goods and WIP EUR 3.6m; (2) EBIT(DA) Net debt4) -5.1 11.5
divided by revenue; (3) Delta relates to holding expense / transition; (4) Net cash position of EUR 5.1m includes IFRS leasing
liabilities of EUR 3.4m which have been factored in for the first time © cyan Digital Security 2020 19© cyan Digital Security 2020
Disclaimer This presentation (the “Presentation”) has been produced for discussion purposes only. The Presentation is not a securities prospectus and the information contained therein does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States, Australia, Canada, or Japan or in any other jurisdiction in which such offer or sale would be unlawful. The securities referred to in the presentation have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended, or under any applicable securities laws of any state, province, territory, county or jurisdiction of the United States, Australia, Canada, or Japan. Accordingly, unless an exemption under relevant securities laws is applicable, any such securities may not be offered, sold, exercised, transferred, delivered or distributed, directly or indirectly, in or into the United States, Australia, Canada, or Japan or any other jurisdiction if to do so would constitute a violation of the relevant laws of, or require registration of such securities in, the relevant jurisdiction. The information contained in this presentation does not constitute investment advice. The Presentation is being made only to, and is only directed at, persons to whom it may lawfully be communicated (“relevant persons”). Any person who is not a relevant person should not act or rely on this presentation or any of its contents. This presentation does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase any shares or other securities in cyan AG (the "Company"), nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or commitment or investment decisions relating thereto, nor does it constitute a recommendation regarding the shares and other securities of the Company. The information herein pertaining to the company and its investments is fully confidential. Please do not publish or disclose it to any third party other than your attorneys, advisers, and others under binding confidentiality obligations without the express prior written consent of cyan. The presentation does not constitute any legal advice. This must be done individually, taking into account the circumstances of the individual case. The unaudited historical financial information and numbers of the company contained herein are preliminary and subject to adjustments and modifications. All aspects of the Presentation must be considered in the context of more fulsome and independently-obtained information that may be required for any decision regarding the Presentation’s subject matter. Any recipient of the Presentation should determine, in consultation with its own legal, tax, regulatory, accounting and other pertinent advisors, all economic risks and merits, as well as legal, tax, regulator and accounting characteristics and consequences, of any transaction as it pertains to them. Past performance presented in the presentation should not be taken as an indication or guarantee of future performance, and no representation or warranty, express or implied, is provided in relation to any aspect of the Presentation. The Company accepts no responsibility for, and expressly disclaims all liabilities relating to, any loss, whether direct or indirect, or any other kind of damage resulting from reliance upon or use of information contained in the Presentation. Certain statements included or incorporated by reference within this presentation may constitute “forward-looking statements” in respect of the Company’s operations, performance, prospects and/or financial condition. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions and actual results or events may differ materially from those expressed or implied by those statements. Hence, there is a considerable risk that investors face the risk to lose all their money they invest in the company. Accordingly, no assurance can be given that any particular expectation will be met and reliance should not be placed on any forward-looking statement. Nothing in this presentation should be construed as a profit forecast. All forward-looking statements relating to the Presentation are qualified in their entirety by this cautionary statement. The Presentation is to be construed as of the date of its creation and is subject to change at any time without notice. No party makes any representation, whether express or implied, with respect to the completeness or accuracy of the Presentation, or for the fitness of the information in the Presentation for any purpose. No party shall have any obligation to update any information contained in the Presentation at any time. Nothing in this Presentation shall be construed by any party as a binding or legally enforceable commitment, contract or offer to contract with respect to its subject matter. The Presentation neither imposes any obligation, nor grants any rights with respect to, any service or transaction referenced in the Presentation, nor does it impose on any party a duty or obligation to conclude any such agreement or commitment. Any person receiving the Presentation is deemed to have accepted these legal notices and that such notices shall apply even if the Presentation in any way is shown to be erroneous, incomplete or based upon incorrect or incomplete facts, interpretations or assessments or assumptions, irrespective of any responsibility of the Company. To the extent permitted by law, all legal considerations arising from this Presentation shall be governed by the Law of Germany. Icons made by Smashicons from www.flaticon.com is licensed by CC 3.0 BY © cyan Digital Security 2020
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