FIRSTWAVE CLOUD TECHNOLOGY LIMITED — Investor Presentation 2016

Nov 9, 2016

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Cloud Security Solutions for the Enterprise

Investor Presentation November 2016

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Im ortant information p

Summary of information: This presentation has been prepared by and contains general and background information about FirstWave Cloud Technology Limited ACN 144 733 595 ( FirstWave ). This presentation has been prepared for information purposes. This presentation does not purport to contain all the information that a prospective investor may require in evaluating a possible investment in FirstWave nor does it contain all the information which would be required in a prospectus prepared in accordance with the requirement of the Corporation Act. It should be read solely in conjunction with the oral briefing provided by FirstWave and all other documents provided to you by FirstWave. FirstWave are not responsible for providing updated information and assumes no responsibility to do so.

Not financial product advice: This presentation is not a financial product, investment advice or a recommendation to acquire FirstWave securities and has been prepared without taking into account the objectives, financial situation or needs of any person or entity. Before making an investment decision prospective investors should consider the appropriateness of the information having regard to their own objectives, financial situation and needs, and seek legal, taxation and financial advice appropriate to their jurisdiction and circumstances. FirstWave are not licensed to provide financial product advice in respect of its securities or any other financial products. Cooling off rights do not apply to the acquisition of FirstWave securities. FirstWave assume that the recipient is capable of making its own independent assessment, without reliance on this document, of the information and any potential investment and will conduct its own investigation.

Disclaimer: FirstWave have made every effort to ensure the accuracy of information contained in this presentation. FirstWave and their respective related bodies corporate and each of their respective directors, agents, officers, employees and advisers expressly disclaim, to the maximum extent permitted by law, all liabilities (however caused, including negligence) in respect of, make no representations regarding, and take no responsibility for, any part of this presentation and make no representation or warranty as to the currency, accuracy, reliability or completeness of any information, statements, opinions, conclusions or representations contained in this presentation. In particular, this presentation does not constitute, and shall not be relied upon as, a promise, representation, warranty or guarantee as to the past, present or the future performance of FirstWave.

Future performance: This presentation contain certain ‘forward looking statements’ and opinions. The forward-looking statements, opinions and estimates provided in this presentation are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. These statements reflect views only as of the date of this Presentation. The actual results of FirstWave may differ materially from the anticipated results, performance or achievement expressed, project or implied by these forward looking statements. While FirstWave believes that the expectations reflected in the forward looking statements in this Presentation are reasonable, neither FirstWave nor any other person gives any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward looking statements in this Presentation will actually occur and you are cautioned not to place undue reliance on those forward looking statements.

Risks: An investment in FirstWave securities is subject to investment and other known and unknown risks, some of which are beyond the control of FirstWave. You should have regard to the ‘Key Risks’ section of this presentation which outlines some of these risks.

Not an offer: This presentation is not, and should not be considered as, an offer or an invitation to acquire securities in FirstWave or any other financial products and neither this document nor any of its contents will form the basis of any contract or commitment. This presentation is not a prospectus.

Sophisticated and professional investor: By attending this presentation, you represent and warrant that (i) if you are in Australia, you are a person to whom an offer of securities may be made without a disclosure document (as defined in the Corporations Act 2001 (Cth) (“Corporations Act”)) on the basis that you are exempt from the disclosure requirements of Part 6D.2 in accordance with Section 708(8) or 708(11) of the Corporations Act (ii) if you are outside Australia and , you are a person to whom an offer and issue of securities can be made outside Australia without registration, lodgement or approval of a formal disclosure document or other filing in accordance with the laws of that foreign jurisdiction. If you are not such a person, you are not entitled to attend this presentation.

No distribution: Distribution of this presentation may be restricted by law. Persons who come into possession of this presentation should seek advice on and observe any such restrictions. Any failure to comply with such restrictions may constitute a violation of applicable securities laws.

Confidential: This document contains information that is strictly confidential. By attending this presentation, you agree not to directly or indirectly disclose to any person or copy, use, publish or record in any form any part of this document.

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Mark Russinovich, CTO.

“For years, there has been discussion on when the enterprise-cloud migration tipping point would be reached, and at last it appears it has happened. Cloud adoption is growing quickly around the world, and regional research backs this notion… Security becomes a cloud enabler

Security has been a notorious inhibitor to cloud adoption for years. However, I’m sensing a sea change on this issue, with more customers recognising that the cloud is secure and even acknowledging they believe the cloud is more secure than their own datacenters. While this prediction feels bold, I believe this could be the year we see security change from being an inhibitor, to being a key enabler for cloud adoption.”

Jan, 2016.

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Flexible & Diverse Cloud Offerings

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Vendors need telcos as
a Cloud Security Channel
Telcos are looking for
differentiated services
to combat declining
mobile and data
revenue
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Global Security
Vendors
Cloud Content
Security Gateway
Telecommunication
Service Providers
Enterprise &
Government Customers
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✓Highly replicable

✓Multi-Vendor

✓Multi-Cloud

✓Cross-sell and up-sell ✓Ability to deploy new innovations by security vendors quickly

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The Multi lier Effect p

FIRSTWAVE BUSINESS

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FirstWave NRC
FirstWave MRC
FirstWave Lic.
NRC, PS NRC
Product MRC
Wave
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	FY’16	FY’17	FY’18	FY’19
Carriers	1	4	7	10
Customers	300	700	1,500	3,000
Services	1	2	3	3.5
Services in Operation	300	1,400	4,500	10,500

NOTE: The above Multiplier Effect is an illustrative only growth scenario and is based on hypothetical assumptions. These statements do not constitute a forecast or projections nor do they represent revenue but service(s) in operation by number at an assumed hypothetical point in time. These statements reflect views only as of the date of this presentation.

Firstwave Platform Licence

NRC: Non Recurring Charge (Revenue $)

MRC: Monthly Recurring Charge (Revenue $)

• PS: Professional Services

• Platform as a Service – Platform currently provided by Telstra in current engagement

Services (in Operation): Reflects any one particular offer such as Next Generation Firewall or Email or Web.

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The Story

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Where it all began

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Australian tech company established in early 2000’s

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Significant investment in R&D

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Heritage from Telstra’s

Research Labs

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Patented, market leading content security technology

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White labelled, SaaS security solutions

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Expanding our paths to market

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Software as a Service

CARRIER GRADE

• Carrier Grade platform which creates a marketplace for Telcos to deliver world class cloud security services to their enterprise & government customers.

• Scalable

• Flexible

• Multi-Tenanted

• High degree of automation

• High availability

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The Platform

SAAS SECURITY

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Telco Catalogue of
Security Services
WWW
Public Internet
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MPLS
Private Network
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Single Unified RBAC View for
Management and Control
Customer Telco Operations Orchestration Analytics
White Label Security SaaS
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Security Vendors

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Tier 1 Securit Vendors y

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• Internet Protection for Mail ENTERPRISE GRADE SOLUTION – SCALES TO ALL SIZE BUSINESSES

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Corporate Giant selects TIP email Requires cloud email security solution - no single point of failure Protection of 10,000 + corporate email accounts across 20 sites Our email gateway delivered as Telstra Internet Protection won this account as part . of a larger SP offering

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Over 1 million Student Email Accounts Protected

Dedicated Cloud Email gateway delivered in partnership with Cisco and Telstra Ongoing projects available with P.S and other bespoke development such as 2 factor authentication. Scanning for 1.3M student e-mail boxes, that are made up of TAFE and Secondary/Primary Students in NSW.

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Major Federal Government Gateway

Major breakthrough in key government cloud and market Large scale security transition project and long term customer support. Based on FirstWave’s Cloud Content Security Gateway.

ASD accreditation standards.

• Internet Protection for Web ENTERPRISE GRADE SOLUTION – SCALES TO ALL SIZE BUSINESSES

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Local Government Email and Web bundle for 200+ Users

3 of Australia’s Big Banks use TIP Web Protection of public in branches on free Wi-Fi Secure employees on corporate Wi-Fi networks

Leading Utility Provider …

2 year contract – requires managed cloud based web security offering

• Deliver an essential 24/7 service to over 4 million customers – requires no single point of failure

Requires filtering that can be adapted to meeting Council’s changing needs 24/7 global support and Australian based help desk to manage changes and queries quickly.

• Seamless transition – complex project – rapid deployment in time critical environment

• • High availability security solution.

Ensure compliance on corporate gateway

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Next Generation Firewall

• ENTERPRISE GRADE SOLUTION – SCALES TO ALL SIZE BUSINESSES

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Lovin’ the Security

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Fresh Food delivered Safely

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Worth doing, worth Protecting

Public Facing Domain Protection Secures all customers using in store access to the internet in any of McDonalds restaurants

Internet gateway for all stores in Australia Protects delivery of rights protected audio streaming for in-store play out

Security for 961 stores

Internet Gateway for Private Network Protection for a whole of business contract won by Telstra Located at head office delivering coverage to 70 Sites

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Hei htened Awareness g

CYBERCRIME IS A REALITY

• Bureau of Meteorology hacked by foreign spies in massive malware attack designed steal sensitive documents and compromise other government networks, ABC Reports.

• ASX and ASIC launch big company cyber health checks, Financial Review.

• The Reserve Bank of Australia's top technology executive has said the central bank's networks are being probed by potential hackers every two seconds and that almost 70 per cent of the emails received by RBA addresses are malicious. IT News.

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• Multi-tenanted Platform Performance MEANINGFUL INSIGHT ON ATTACK TYPES & VECTORS

Inbound Mail	August	September
Processed	85,165,936	90,641,296
Clean	13,538,496	12,416,762
% Spam/Malicious	84%	86%
Outbound Mail	August	September
Processed	37,924,548	40,456,339
Clean	31,802,526	30,455,874
% Spam/Malicious	16.1%	24.7%

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Addressin the Threat Quickl g y THE $3B IT SECURITY PROBLEM

• “Criminals are increasingly moving away from malware in favour of compromising business email to scam organisations out of money” – IT News, May 2016

• “Social engineering has reaped attackers of A$3 billion since October 2013, with over 17,000 business affected across 79 countries” – FBI, April 2016

• “They research employees who manage money and use language specific to the company they are targeting, then they request a wire fraud transfer using dollar amounts that lend legitimacy” – FBI, April 2016

• • “CEO sacked after company loses $63m to whaling attack” – CRN, May 2016

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Growth Trajectory

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Growth

PIPELINE EXPANDING

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Pipeline of 70+ New Opportunities circa $5M TCV

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Telstra launches GPA

SECURITY SAAS

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Enhanced Platform Ca abilit p y

• EXPANDING FIRSTWAVES OFFERINGS & DRIVING NEW REVENUE

FirstCloud

• Endorsed by Telstra

• Addresses volume market

• Based on alternative cloud infrastructure

• Can be scaled and replicated world wide

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Execution

CONTRACTS BEING DELIVERED

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25+ Contracts Executed Win Ratio in excess of 90%

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Commentar on FY’17 y

MOVING YEAR

• Continued growth in acquisition of customers

• Increase in demand for bundled services

• Further security services to be launched

• Telstra Enterprise & Government significant untapped opportunity

• Engagement with international Telcos in

• progress

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Laser Focused

EXECUTION

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1. Execute on opportunity with Telstra
2. Create international footprint
Exploitation of I.P.
3.
4. Grow expansive application of platform
5.
6.
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Innovate • Create • Execute

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