Investor Presentation • Nov 1, 2022
Investor Presentation
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November 2022 cyan AG Connectivity and Cyber Safety © cyan Digital Security 2022
With European roots, cyan AG and its subsidiaries are trusted by leading international communication service providers globally to provide connectivity and value-added cybersecurity.
2021 – today CEO of cyan AG
2018 – 2020 CCO, Aon AUT and SUI
2006 – 2018 Various management positions, QBE, Aon
2003 – 2006 CEO, Euler Hermes Japan
2018 – today CTO of cyan AG
2011 – today CTO of cyan Security Group
2019 – today CEO of I-New Unified Mobile Solutions
2006 – 2020 Founder and CTO of cyan Networks
Historic overview of cyan
After being acquired in 2017, cyan listed on the Frankfurt Stock Exchange (Scale Segment)
Today cyan serves millions of end-users via partners using cyan technology
cyan focuses on solutions for the telecom sector (MVNOs, MNOs, ISPs), but the technology is applicable in future growth markets as well
Focus on leveraging multi -tenancy on existing platforms for economies of scale
Competitive market, but with significant (new) growth opportunities
BSS/OSSDigital connectivity solutions with a global footprint with highly Diversification in new regions and applications such as satellite based connectivity
Enabling 5G monetization
i-new is enables connectivity for a growing digital ecosystem in an evolving telecom industry by powering MNOs' sub -brands, MVNOs, MVNEs and resellers across the
Leading vendor of an end-to-end out-of-the-box virtualized platform for multi-tenancy and sub-brand requirements
Feature rich and modular digital lightweight BSS/OSS platform with industry leading performance
MVNE service hubs across the globe where new MVNOs can launch their services quickly
Deployment of the BSS/OSS platform without the need of external integrators
Experienced and well-trained global and local teams provide full managed services
CYBERSECSeamless protection through market leading technology with Cybersecurity is a fast -growing market – Telecom operators (MNOs and ISPs) are at the forefront of protecting the end -user
Emphasis on implementing, scaling, and monetizing existing customers and selected prospects
A pipeline of highly promising customers for cybersecurity solutions to be signed
CYBERSECURITY
Attacks on mobile devices will increase in volume and degree of sophistication
cyan's Threat Intelligence feeds the security filter database on which cyan's products are built – Active sourcing, patented methods and self-reinforcing
25 proven methods of analysis constantly update the proprietary security filter database cyan's products build on a security filter based on DNS technology, which is core to the modern internet
global subscribers
MNO Target
cyan's vision: 10% market share of 2.6 billion potential customers – Up to EUR 7.8 billion total market potential in MNOs
targeted in the future
customers in unlikely markets with different security standards such as China or Russia (both ca. 1.3 billion)
| 9M 2022 |
9M 2021 | FY 2021 | |
|---|---|---|---|
| Revenue | 6.1 | 5.9 | 8.5 |
| Total earnings1 | 10.3 | 7.3 | 10.8 |
| Costs | - 15.3 |
- 17.8 |
- 23.1 |
| EBITDA | - 5.0 |
- 10.5 |
- 12.3 |
| Result after tax | - 5.1 |
- 11.8 |
- 13.9 |
| Cash flow from operations | - 3.3 |
- 6.5 |
- 9.5 |
| 30/09 2022 |
31/12 2021 |
||
| Cash and cash equivalents | 2.3 | 8.5 | |
| Net debt incl. IFRS 162 | 5.8 | 4.2 |
Launched several MVNOs and Cybersecurity customers – Goal is to drive subscriptions and monetization
Focusing on recurring revenues now vs. license deals which were largely recognized in revenue in previous years
The performance improvement program's cost reductions and efficiency improvements show effect
Further enhancement of equity and cash position through EUR 5.6m capital increase in Q4 2022
cyan is refocusing its business to drive monetization of its strong and mass-market capable technology
Long implementation time The potential of cyan's highly scalable solutions remained uncaptured
Lack of monetization Revenue was generated slowly – Partners require sales support after the launch
Efforts were spent on various target groups, instead of building on strengths resulting in increasing costs
Accelerated implementation and go-to-market support resulting in increased cash flow
Focused on increased quality of earnings through recurring revenue generation
Performance improvement program resulting in leaner organization with less overhead
Fastest implementation to date: OTE in just 6 weeks
Majority of revenue is recurring from subscriptions and services
Reduced costs across the entire group by over 20% in the last twelve months
In addition to progress with existing customers, cyan signed and launched new partnerships with MNOs and MVNOs
01 Outstanding technology Each solution is built around the same core technology which results in sophisticated but standardized products
02 B2P2C Business Model Millions of end customers are accessed through blue-chip partners in a B2P2C approach
04 Lean Operations
SaaS-products with low marginal costs are available once the solution is integrated into the network
05 Asset Light Structure Flexible IT cost structure and low capex per project as cyan rents capacity at virtual data centers for sourcing and research process
06 Additional Upside
Application of core technology to new business segments and expansion into further international markets
cyan's core strengths and advantages
cyan AG Investor Relations [email protected] ir.cyansecurity.com
1.-2. Dec. 2022 | Geneva CF&B 14th Geneva MidCap Event
The digital world is an essential part of our personal and business life. Regardless of the reason we use it, we are all connected to one system: the Internet.
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. 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 and therefore, this Presentation 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. 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 and/or legal advice. The Presentation must not be published, redistributed or disclosed to any third party without the express prior written consent of cyan.
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 (unaudited) historical financial information and figures 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. 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.
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