NASDAQ / TASE: SFET Corporate Presentation, May 2022

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NASDAQ / TASE: SFET Corporate Presentation, May 2022
NASDAQ / TASE: SFET
Corporate Presentation, May 2022
NASDAQ / TASE: SFET Corporate Presentation, May 2022
Forward-Looking Statements

    This presentation of Safe-T® Group Ltd. (the “Company”) contains “forward-looking statements” within the meaning of the Private Securities Litigation
    Reform Act and other securities laws. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and similar expressions or
    variations of such words are intended to identify forward-looking statements. For example, the Company is using forward-looking statements when it
    discusses its estimated revenue, annual run-rate, the potential of its products, its strategy and growth drivers, market potential for its products and
    future market growth. Forward-looking statements are not historical facts, and are based upon management’s current expectations, beliefs and
    projections, many of which, by their nature, are inherently uncertain. Such expectations, beliefs and projections are expressed in good faith. However,
    there can be no assurance that management’s expectations, beliefs and projections will be achieved, and actual results may differ materially from
    what is expressed in or indicated by the forward-looking statements. Forward-looking statements are subject to risks and uncertainties that could
    cause actual performance or results to differ materially from those expressed in the forward-looking statements. For a more detailed description of
    the risks and uncertainties affecting the Company, reference is made to the Company’s reports filed from time to time with the Securities and
    Exchange Commission (“SEC”), including, but not limited to, the risks detailed in the Company’s annual report on Form 20-F filed with the SEC on March
    29, 2022, and in any subsequent filings with the SEC. Forward-looking statements speak only as of the date the statements are made. The Company
    assumes no obligation to update forward-looking statements to reflect actual results, subsequent events or circumstances, changes in assumptions
    or changes in other factors affecting forward-looking information except to the extent required by applicable securities laws. If the Company does
    update one or more forward-looking statements, no inference should be drawn that the Company will make additional updates with respect thereto
    or with respect to other forward-looking statements.

© 2022 Safe-T Group Ltd. All Rights Reserved.

                                                                                                                                            NASDAQ / TASE : SFET    2
NASDAQ / TASE: SFET Corporate Presentation, May 2022
First Quarter 2022 Highlights

                                                Execution, Execution,
                                                     Execution
    Revenues - Up 199%                                                                      Gross profit - Up 378%

                                                 Cost Reductions – Expected to Accelerate
                                                    Throughout the Remainder of 2022

© 2022 Safe-T Group Ltd. All Rights Reserved.

                                                                                                   NASDAQ / TASE : SFET   3
NASDAQ / TASE: SFET Corporate Presentation, May 2022
About Safe-T Group Ltd.

                                                                                                         Customers
           We are a global provider of cybersecurity and                                                                  Safe-T Group Ltd.
                                                                                                                           NASDAQ / TASE : SFET
           privacy solutions to the enterprise and consumer
           markets
                                                                                                                          Average ADS Price (1)         $0.54
                                                                                                                          Market Cap (1)                $16M

           Highly scalable business model
                                                                                                                          Avg. Daily Volume Q1/22       $0.82M
           with high gross margins                                                                                        Revenue Q1/22                 $4.0M
                                                                                                                          Gross Profit Q1/22            $2.1M
                                                                                                                          Cash & S.T. Investments (2)   $7.3M

           Exponential growth - moving from annual revenue                                                                Total Debt (2)                $0M
           run rate of $1.6M in Q2-19 to more than $15M in Q1-22                                         Consumers        ADS Outstanding (1)           30.4M
                                                                                                                          Public Float (1)              26.5M
                                                                                                                          FD ADS Outstanding (1)        40.7M
           Strong Management of entrepreneurs and ex-                                                                     Employees                     45
                                                                                                   Thousands of users -
           intelligence unit - holding ~13% of the outstanding                                                                                          Herzliya,
                                                                                                    Quantity increased    Headquarters
           share capital                                                                                                                                Israel
                                                                                                        exponentially

1) As of May 27, 2022
2) As of March 31, 2022
                                                                   © 2022 Safe-T Group Ltd. All Rights Reserved.                             NASDAQ / TASE : SFET   4
NASDAQ / TASE: SFET Corporate Presentation, May 2022
About Safe-T Group Ltd.

        Fast Growth                                                                                                            2025 Revenue Target –
                                                                                           Total Revenues ($ Million)
                                                                                                                              based on 50% YoY Growth

        Attractive Gross Margin Profile - 60%*                                                                     $10.3M

 (USD $ in Millions)*                           Q1-2022           2021           2020

 Revenue                                         $4.0            $10.3            $4.9
                                                                                                                                        50M
                                                                                                                                        $

 Gross Profit                                    $2.4             $6.3            $3.4
 Gross Margin                                    60%              61%             69%
                                                                                                           $4.9M
 Operating Loss                                 ($3.3)           ($11.2)         ($6.5)                                     Revenues Breakdown Q1-2022
 Net Loss                                       ($3.4)           ($10.3)         ($6.2)                                           EMEA 19%
                                                                                                   $3.3M
(USD $ in Millions)                              Mar. 31, 2022             Dec. 31, 2021

 Cash & Cash Equivalents                             $7.2                     $9.7         $1.4M
                                                                                                                             USA 22%
                                                                                                                                                        ROW 52%
 Total Debt                                         $0.0                      $0.0
 Total Equity                                       $20.4                    $24.2
                                                                                                                              APAC 7%
                                                                                            2018    2019    2020    2021
* Non-IFRS results

© 2022 Safe-T Group Ltd. All Rights Reserved.
                                                                                                                                            NASDAQ / TASE : SFET   5
NASDAQ / TASE: SFET Corporate Presentation, May 2022
Timeline

 2013                          2016                  2018                  2019                      2020                                         2021
Established              Listed on TASE           NASDAQ Listing   1st acquisition of privacy    2nd acquisition of    Started an indirect   3rd acquisition of
                        RND/Beta Stage               Launch               provider for          privacy provider for      GTM - built a      cyber and privacy
                          Initial dozens            ZoneZero®            organizations:             consumers:          significant net of      provider for
                                                                                                                                                consumers:
                            customers                                       NetNut                  ChiCooked               partners
                                                                                                                                                 CyberKick

  © 2022 Safe-T Group Ltd. All Rights Reserved.
                                                                                                                                     NASDAQ / TASE : SFET         6
Safe-T Group Highlights

            Introducing new innovative products        Growth! Presenting record high
                                                       revenues stream, quarter-over-quarter
            Expanding market potential - approaching
            consumers as well as organizations         Average growth of close to 100% Y/Y
                                                       during the last 3 years
            Predicted market needs - started
            focusing on remote access in 2019 which
                                                       Product lines and gross profit with high
            proved the main need for businesses
                                                       gross margins
            during COVID-19

© 2022 Safe-T Group Ltd. All Rights Reserved.
                                                                                                  NASDAQ / TASE : SFET   7
Experienced Leadership

                                         Chen Katz                              Shachar Daniel                                     Shai Avnit                                        Eitan Bremler
                                       Chairman of the Board                   Co-Founder & CEO, Director                        Chief Financial Officer                     Co-Founder, VP Product Strategy,
                                                                                                                                                                                   Marketing and BD
                           TechnoPlus Ventures (TASE: TNPV)
                                                                            PrimeSense / Apple (NASDAQ: AAPL)             BriefCam Acquired by Canon                        Israeli Intelligence Corps
                           Nanomedic Technologies
                                                                            Logic                                         BioProtect                                        Radware (NASDAQ: RDWR)
                           Compulab (TASE: CLAB)
                                                                            Elbit (TLV: ESLT)                                                                               Radvision / Avaya (NYSE: AV)
                           Sagarmatha

                                                 Moishi Kramer                                     David Matrikin                                      Hagit Gal, Adv.
                                                VP R&D Enterprise Privacy                       CTO Consumers Privacy and                                  Corporate Legal Counsel
                                                                                                      Cybersecurity
                                           ARCHIMEDICX
                                                                                                Elite Communication Unit IDF                      Emblaze
                                           zoomd.com
                                                                                                FOCUUS.COM
                                           SweetIM

                                           myThings

© 2022 Safe-T Group Ltd. All Rights Reserved.                                                                                                                                              NASDAQ / TASE : SFET   8
Structure & Opportunity

                                                Enterprise   Consumer
                                                Privacy      Cybersecurity

                                                Consumer     Enterprise
                                                Privacy      Cybersecurity

© 2022 Safe-T Group Ltd. All Rights Reserved.
                                                                             NASDAQ / TASE : SFET   9
Structure & Opportunity

                                        Cybersecurity                                                     Privacy

                  Consumer                              Enterprise                   Consumer                          Enterprise

            Providing consumers an                  Safe-T Security Service       Keeping online users’             An alternative data
            online security dome                                                  information private and           collection business
            against ransomware                                                    secure – adding an
            attacks, viruses, phishing,                                           encrypted secured layer for
            and other online threats               Proprietary advantages for     online privacy
                                                   granting access (internal or
                                                   external users), secure data
                                                   exchange and storage           Protecting from attackers
            Realtime detection of
                                                                                  when using unsecured Wi-Fi
            dangerous websites
                                                                                  networks
            resulting in safe browsing
            for online users – alerting             Massive market opportunity
            and blocking those threats!             ($10B+)

© 2022 Safe-T Group Ltd. All Rights Reserved.
                                                                                                                         NASDAQ / TASE : SFET   10
Consumer
Cybersecurity and
Privacy Solutions
Threats for Consumers Are Real

                                                                                       Consumer’s privacy market is “hot”

                                                                               Kape Technologies acquired Express VPN for $900M

            The last few years have seen an alarming spike in the      47%
            number of malicious hackers                                *U.S. consumers experienced identity theft
                                                                       in last 2 years
                                                                                                                          *Source: Aite Group
            Hackers can be individuals acting on their own, to well-
            funded private and governmental groups                     $721.3B
                                                                       *2021 expected losses from identity theft

            All hackers share the same modus operandi: lurking,

                                                                       $6.99B
                                                                                                                             ** Source: Statista
            waiting for unsuspecting users to make even the
            smallest mistake online
                                                                       **2021 consumer security software spending

© 2022 Safe-T Group Ltd. All Rights Reserved.
                                                                                                                    NASDAQ / TASE : SFET           12
Safe-T Consumer Cybersecurity
                   and Privacy Solutions

                Safe-T Consumer
                                                    Making the internet a safer
                Cybersecurity and Privacy
                                                    place for everyone
                solutions, were built in order to
                fight the battles of consumer
                hacking

                We’re out to protect the tens
                                                    Our products consist of two
                of millions of users who, like
                most of us, spend a lot of time     key fields of cybersecurity:
                online, and can fall victim to      • Online Cybersecurity
                predators without ever
                knowing it                          • Online Privacy protection

© 2022 Safe-T Group Ltd. All Rights Reserved.
                                                                  NASDAQ / TASE : SFET   13
Cybersecurity Solution -
                                         Consumers

                                                                                   Main Features:

                                                       Detects dangerous websites during user’s browser usage – alerting and
                                                       blocking those threats

                                                       Protects consumer personal               Protect against Malvertising
                                                       data & identity                          (malicious advertising)

                                                       Keeps consumer computer                  Controls consumer web footprint
                                                       safe
Safe-T Cybersecurity for
Consumers is a protective                              Provides parental control                Browsing Encryption
cyber product that
identifies, eliminates and                                                     Business Model:
helps avoid security and
data breach threats                                    Subscription-based (Monthly/Yearly)

                             © 2022 Safe-T Group Ltd. All Rights Reserved.
                                                                                                                          NASDAQ / TASE : SFET   14
Privacy Solution -
                                        Consumer

                                                                                  Main Features:

                                                       Encrypting users' data while browsing on sensitive websites i.e., banking
                                                       sites, emails, etc.

                                                       Protecting users’ privacy and browsing activity from hackers and network
                                                       listeners

                                                       Defending users from hackers when using unsecured Wi-Fi networks
Safe-T Privacy for
Consumers allows its                                   Keeping users’ information safe from third parties
users to take charge of
their online privacy with                              Generating ultra fast secured tunnel for each user
a powerful, secured and
encrypted connection
                                                                                 Business Model:

                                                       Subscription-based (Monthly/Yearly)

                            © 2022 Safe-T Group Ltd. All Rights Reserved.
                                                                                                                                  NASDAQ / TASE : SFET   15
Consumer Cybersecurity & Privacy
                      Go–To–Market

                                                                       Marketing          Customer
        Market Analysis                             Product                                                  Retention
                                                                       Strategy           Acquisition

      +         Revenue                         +   Segmentation   +    Pricing       +    Awareness     +   Lifetime value
                                                                                                             model

      +         Gross margin                    +   Positioning    +    Features
                                                                                      +    Engagement    +   User
                                                                                                             satisfaction

                                                                                      +    Performance
                                                                                                         +   Usability
      +         Profitability                   +   Integration    +    Penetration
                                                                                           by channels       benchmark

© 2022 Safe-T Group Ltd. All Rights Reserved.
                                                                                                             NASDAQ / TASE : SFET   16
Consumer Cybersecurity & Privacy
                      Business Strategy

                 Users are our main assets, investment in user acquisition translates to
                 future high-margin, recurring revenues

                 We plan on increasing investments into user acquisition

                 In alignment with market user retention percentages and our ability to
                 correctly project future revenues, we built our plan on a 5-year forecast
                 model

                 Our model estimates revenue for each acquired user for the duration of
                 their Lifetime Value (“LTV”) period

© 2022 Safe-T Group Ltd. All Rights Reserved.
                                                                                             NASDAQ / TASE : SFET   17
Customer Acquisition –
                       Lifetime Value Model
                     LTV Model illustrating growth in high-margin recurring revenue through customer
                     acquisition over a five-year period
    Revenues in $M

                                                                                                           Revenues from New Users Year 5
                                                                                                           Revenues from New Users Year 4
                                                                                                           Revenues from New Users Year 3
                                                                                                           Revenues from New Users Year 2
                                                                                                           Revenues from Current Users

   Year 1                                       Year 2   Year 3              Year 4               Year 5
                     Based upon our LTV model, investments into consumer acquisition are targeted to
                     generate at least a 3x return, producing millions in recurring revenues over the
                     following years

© 2022 Safe-T Group Ltd. All Rights Reserved.
                                                                                                                    NASDAQ / TASE : SFET    18
Enterprise
Cybersecurity
Solutions
Attacks on Corporates are on the Rise

$4.24M
Average total cost of a breach WOW*

61%                                                   INDUSTRIAL                   On Premises Services                           Private Cloud                          Public Cloud
Data breaches due to stolen or misused credentials*
                                                         IoT

   Corporate Cyber Attacks Up
   50% Last Year**

       Examples of 2021 Cyber Attacks
             (VPN, Ransomware & Supply Chain)                                   Ransomware           Data Breach / Lateral       Credential       Malicious Remote
                                                                                   Attack                 Movement             Theft / Account         Access
                                                                                                                                  Takeover

                                                                                                                   *Source: Cybertalk
                                                                   © 2022 Safe-T Group Ltd. All Rights Reserved.   **Source: Cybersecurityintelligence
                                                                                                                                                           NASDAQ / TASE : SFET         20
Our Enterprise Cyber Security Solution

            Safe-T and TerraZone have partnered to deliver best of breed cyber services
            to SMB and enterprises

            The ONLY Cyber Security Cloud Services that address for organizations all their
            secure data exchange and secure data access requirements in one service
            • Secure Email Exchange
            • Secure Data Vaults
            • Secure Remote Access
            • Secure Internal User Access

            We offer the only cloud solution                       Unlike standard data
            designed to secure all organizations                   access and exchange
            data in transit and at rest, protecting                solutions, we control data
            against ransomware attacks and                         according to the user’s
            data breaches                                          identity and role

            Patented, outbound-based technology
                                                                                                Safe-T Security Cloud
                                                Sample Customers

© 2022 Safe-T Group Ltd. All Rights Reserved.
                                                                                                             NASDAQ / TASE : SFET   21
Safe-T Virtual Private Workforce

            Safe-T has partnered with TerraZone and DreamVPS to launch a first-of-its-
            kind “Virtual Private Workforce” Cloud Service

            The VPW cloud service was developed in response to organizational
            workforce shifts to remote or work-from-anywhere models, provides a
            Secure, Flexible Way to Conduct and Manage Remote R&D Teams

            Benefits of Virtual Private Workforce
            • Increased user productivity with increased uptime
            • Reduced data center costs and computing support costs by as much as 90%
            • Improved employee and customer experiences
            • Reduce breach risk
            • Subscription-based user consumption

            Customers signing up to the new cloud service, get the best of all worlds:
            • State-of-the-art, fully self-managed cloud service and infrastructure provided by DreamVPS
            • Encryption and security of data at rest, provided by TerraZone’s Secure Data Exchange solution
            • Secure remote access to organizational environments within the cloud service, provided by
              Safe-T’s ZoneZero® Zero Trust Network Access solution

© 2022 Safe-T Group Ltd. All Rights Reserved.
                                                                                                               NASDAQ / TASE : SFET   22
Enterprise Cybersecurity Go–To–Market

      We leverage an indirect sales model by engaging with top
      tier partners with deep experience & large sales teams
      • Distributor/reseller/integrator
      • MSSP
      • OEMS (white labeled or branded)

      Key Benefits Include: local knowledge, scalable, sector &
      geographic expertise, cost-effective & uniqueness of product

      Working with Safe-T incentivizes and provides partners with
      the ability to offer innovative solutions not available
      anywhere else

      Cyber revenues are based mainly on user-based annual
      subscriptions

                                                                         M&A – Leveraging Safe-T’s RSAccess patented
 Organic Growth – Penetrate deeper into customer               Growth    technology to the automotive cybersecurity, IOT –
 networks with Safe-T cyber solutions                          Drivers   connected devices or Healthcare

                                                                                                        NASDAQ / TASE : SFET   23
Enterprise
Privacy
Solutions
The Need for Enterprise Privacy Solutions

            Websites increasingly change their displayed information based
            on user IP address, location & demographic attributes

                                                                                        NetNut
                                                                                                    $90
            To conduct competitor analysis, price comparisons & data
                                                                                      SuperPROXY
            extraction companies need to access websites as a “simulated                                    $90
            user” to capture the REAL & ACCURATE information

                                                                                                       COMPETITOR
                                                                             RETAIL
            To surf the internet while maintaining anonymity, enterprises
            need to mask their IP address                                                           $110

                                                                                      DATA CENTER

   Companies that do not adopt business IP proxy solutions that simulate different
     users are at risk of gathering incorrect & misleading data, or being exposed

© 2022 Safe-T Group Ltd. All Rights Reserved.
                                                                                                      NASDAQ / TASE : SFET   25
Our Enterprise Privacy Solution

                                                                                            $200M Acquisition of IP Proxy Business
  Our enterprise privacy solution is based on a business
  IP proxy platform, that:
                                                                               EMK acquired Luminati for 8x Revenues (world’s largest IP proxy provider)

            Allows clients to collect accurate, transparent &
            increasingly personal data from public online sources

            Completely hides enterprises from the internet by

                                                                                                      +20M
            modifying IP addresses

            Is the world’s fastest and most advanced/secured
            business proxy network (no third-party computers are
            utilized)

            Utilizes a hybrid network ensuring security, quality, stability,                         IP Addresses Available
            speed & privacy

            Has all servers controlled internally (only company with
            strategic worldwide ISP provider relationships)
                                                                                                          +50
            Has revenues which are composed of short-term packages
            of bandwidth                                                                              Countries Worldwide

© 2022 Safe-T Group Ltd. All Rights Reserved.
                                                                                                                                    NASDAQ / TASE : SFET   26
Our Enterprise Privacy Solution Use Cases

            Advertising                         E-Commerce        Financial Markets   Law Enforcement

                     Airlines &                    Competitive          Banking &          Homeland
                     Lodging                       Pricing Info         Finance            Security

                     Business &                    Social Media         Data for           Predictive
                     Leisure Travel                Trends               Hedge Funds        Analytics

© 2022 Safe-T Group Ltd. All Rights Reserved.
                                                                                           NASDAQ / TASE : SFET   27
Enterprise Privacy Go–To–Market
                     Go–To–Market

                                                                         Marketing           Customer
        Market Analysis                             Product                                                        Retention
                                                                         Strategy            Acquisition

      +         Market Value
                Analysis
                                                +   Overview &
                                                    Segmentation     +    Pricing            SERP / Social     +   User
                                                                                         +   media / Blogs /       satisfaction

      +         Competitor                      +   Roadmap          +    Features
                                                                                             Events /
                                                                                             Awareness
                Analysis
                                                                                                               +   Scaling &

                                                +   Infrastructure
                                                                     +    Predefined /
                                                                                         +
                                                                                                                   Upsales
      +         Trends                                                    Customized          Performance
                                                    & Integration
                Analysis                                                  Features            by Channel
                                                    Requirements

© 2022 Safe-T Group Ltd. All Rights Reserved.
                                                                                                                   NASDAQ / TASE : SFET   28
Key Takeaways
                                                Aggressive growth in attractive
                                                 privacy and security markets

                                                                                  Building worldwide channel/network
            Highly-scalable business model,
                                                                                  with Tier-1 players such as Fujitsu and
            expected 50%+ gross margins
                                                                                  others

                                                                                           Pursuing strategic M&A with
                                                                                           complementary businesses &
   Strong management team,
                                                                                           technology, following three
   experienced entrepreneurs and
                                                                                           successful M&As
   market leaders

                                                                                            Strong Customer Base

         Solid balance sheet

© 2022 Safe-T Group Ltd. All Rights Reserved.
                                                                                                          NASDAQ / TASE : SFET   29
Investor Relations
             Steve Gersten
             Direct: 813-334-9745
             investors@safe-t.com
             Safe-T Group Ltd.
             8 Abba Eban Ave.

Thank you!
             Herzliya Pituach
             Herzliya 4672526 Israel
             https://www.safetgroup.com
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