Tesserent Limited AGM 2016 23 rd NOVEMBER 2016 Disclaimer This - - PowerPoint PPT Presentation

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Tesserent Limited AGM 2016 23 rd NOVEMBER 2016 Disclaimer This - - PowerPoint PPT Presentation

Tesserent Limited AGM 2016 23 rd NOVEMBER 2016 Disclaimer This presentation has been prepared by Tesserent Limited (the "Company"). It does not purport to contain all the information that a prospective investor may require in


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Tesserent Limited – AGM 2016

23rd NOVEMBER 2016

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Disclaimer

This presentation has been prepared by Tesserent Limited (the "Company"). It does not purport to contain all the information that a prospective investor may require in connection with any potential investment in the

  • Company. You should not treat the contents of this presentation, or any information provided in connection with it, as financial advice, financial product advice or advice relating to legal, taxation or investment matters.

No representation or warranty (whether express or implied) is made by the Company or any of its officers, advisers, agents or employees as to the accuracy, completeness or reasonableness of the information, statements, opinions or matters (express or implied) arising out of, contained in or derived from this presentation or provided in connection with it, or any omission from this presentation, nor as to the attainability of any estimates, forecasts or projections set out in this presentation. This presentation is provided expressly on the basis that you will carry out your own independent inquiries into the matters contained in the presentation and make your own independent decisions about the affairs, financial position or prospects of the Company. The Company reserves the right to update, amend or supplement the information at any time in its absolute discretion (without incurring any obligation to do so). Neither the Company, nor its related bodies corporate, officers, their advisers, agents and employees accept any responsibility or Liability to you or to any other person or entity arising out of this presentation including pursuant to the general law (whether for negligence, under statute or otherwise), or under the Australian Securities and Investments Commission Act 2001, Corporations Act 2001, Competition and Consumer Act 2010 or any corresponding provision of any Australian state or territory Legislation (or the Law of any similar Legislation in any other jurisdiction), or similar provision under any applicable law. Any such responsibility or liability is, to the maximum extent permitted by Law, expressly disclaimed and excluded. Nothing in this material should be construed as either an offer to sell or a solicitation of an offer to buy or sell securities. It does not include all available information and should not be used in isolation as a basis to invest in the Company. Future Matters This presentation contains reference to certain intentions, expectations, future plans, strategy and prospects of the Company. Those intentions, expectations, future plans, strategy and prospects may or may not be achieved. They are based on certain assumptions, which may not be met or on which views may differ and may be affected by known and unknown risks. The performance and operations of the Company may be influenced by a number of factors, many of which are outside the control of the Company. No representation or warranty, express or Implied, is made by the Company, or any of its directors, officers, employees, advisers or agents that any intentions, expectations or plans will be achieved either totally or partially or that any particular rate of return will be achieved. Given the risks and uncertainties may cause the Company's actual future results, performance or achievements to be materially different from those expected, planned or intended, recipients should not place undue reliance on these intentions, expectations, future plans, strategy and prospects. The Company does not warrant or represent that the actual results, performance or achievements will be as expected, planned or intended. US Disclosure This document does not constitute any part of any offer to sell, or the solicitation of any offer to buy, any securities in the United States or to, or for the account or benefit of any "US person" as defined in Regulation S under the US Securities Act of 1993 ("Securities Act"). The Company's shares have not been, and will not be, registered under the Securities Act or the securities Laws of any state or other jurisdiction of the United States, and may not be offered or sold in the United States or to any US person without being so registered or pursuant to an exemption from registration including an exemption for qualified institutional buyers.

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Company Snapshot

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ASX Symbol TNT Existing Shares on Issue:

  • Listed
  • Escrowed

37,250,001 65,209,599 Total Ordinary Shares 115,334,600 Cash Balance (at 30 Sept 2016) A$2.112m Share Price (22 November 2016) 14.0 cents Market Capitalisation A$16.15m

  • Tesserent Limited is an ASX-listed Software & Services

Company providing world-class managed security services to a wide range of Australian and international customers.

  • Tesserent has a MSSP Platform, enabling the delivery of

Security-as-a-Service to small and large organisations’.

  • Tesserent has appointed Channel Partners that use the

MSSP Platform to deliver Security-as-a-Service to their

  • wn customers.
  • In Australia, Tesserent’s customers currently include

BMW, Toyota, Nintendo, The Good Guys, Reece and Maxitrans.

  • Industry sectors serviced by Tesserent include

education, financial services, transport, healthcare, religious institutions, logistics, retail, government (federal, state and local), and professional services.

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Investment Proposition

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  • Market Position
  • Tesserent and its Channel Partners provide Security-as-a-Service to more than 350 organisations located in 11 countries and territories.

Australian organisations currently serviced by Tesserent include BMW, Toyota, Nintendo, The Good Guys, Reece, and Maxitrans.

  • Scalable Sales Channel Model & Technology
  • The MSSP Platform can be delivered to organisations as a cloud service, which makes it highly scalable since cloud computing allows a

business to easily upscale or downscale its IT requirements as and when required.

  • Indirectly this provides Tesserent with the opportunity to generate revenue from a wider range of potential organisations than Tesserent

could achieve with its own sales resources.

  • Subscription Model
  • Tesserent generates recurring revenues as a result of the sale of Security-as-a-Service under a subscription model.
  • Existing Security Data Supplier Relationships
  • Tesserent has important global relationships with leading software security data providers including companies like Cisco, Spamhaus,

SURBL., and others.

  • Highly Experienced Management and Board
  • Tesserent has a highly experienced management team and board with global and industry-relevant experience.
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CYBER SECURITY

THE THREAT LANDSCAPE

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Australians are Increasingly Connected Online

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Source: Australia’s Cyber Security Strategy, Australian Federal Government 2016

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Detected Security Events in Australia are Increasing

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Source: Global State of Information Security Survey, PwC, 2016

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Security Budgets are on the Rise

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Source: Global State of Information Security Survey, PwC, 2016

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“By 2020, 100% of Large Enterprises will be asked to report to their Board of Directors on Cyber Security.” Gartner

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Security is a Priority for Australian Businesses

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Source: Global State of Information Security Survey, PwC, 2016

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Cyber Crime is a Significant Cost

“…cybercrime is estimated to cost Australians

  • ver $1 billion each year.”

“Worldwide, losses from cyber security attacks are estimated to cost economies around one per cent of GDP per year. On this basis, the real impact of cybercrime to Australia could be around $17 billion annually”

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Source: Australia’s Cyber Security Strategy, Australian Federal Government 2016

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2015/16 DELIVERED

SOLID GROWTH

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Growth Driven by Strategy

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Key Business Highlights:

  • Revenue increased 30.2% YoY
  • IPO completed February 2016
  • Blue Reef business acquired May 2016
  • Business strategy developed to drive revenue growth.
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Strategic Revenue Growth

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Tesserent’s business strategy is focused on building systematic and sustainable revenue

  • growth. Key elements to drive business success:
  • Experienced leadership team appointed.
  • Highly experienced and proven sales team recruited

⎼ Presence in Victoria, New South Wales and Queensland. Sales team is committed to their territory and is driving high-level engagement with their customer base. ⎼ Other states are covered remotely with regular inter-state visits to build pipeline and customer base.

  • Marketing strategy developed to optimise sales across key market segments through

lead generation, brand recognition and thought leadership initiatives.

  • New US channel partner signed-on during August, targeting education sector.
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OPTIMISING

MARKET GROWTH

TESSERENT PRESENTATION MAY 2016 15

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Our Business – Built for Growth

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  • Operates within high growth Managed Security market.
  • 350 customers of various sizes in Australia and overseas.
  • Blue-chip companies such as BMW, Toyota, Nintendo, The Good

Guys, Reece Plumbing, key educational institutions and various Government entities.

  • First-class in-house technical capabilities
  • Strong partnerships with leading global OEM security vendors
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Our Offerings

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Managed Security Service Cyber Safety and Digital Citizenship

PRODUCT INTEGRATION

  • Tesserent addresses the enterprise

markets and education market with specialised cyber security products.

  • Our offerings continue to expand,

keeping pace with market changes.

  • We combine our proprietary

products with leading OEM vendor products to offer a world-class managed security service.

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Our Market/s

3 Key Industries and Several Territories

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Key Industries:

  • Local Government
  • Corporate
  • Education

Target Customer:

  • 100-2000 users
  • 2-20 IT Staff

Territories:

  • MSSP
  • Existing focus on Victoria
  • Expanded territory including New South Wales
  • International opportunities with Direct and Wholesale

relationships

  • Education
  • National presence
  • Some international presence with the view to expand

End-Customers in:

  • USA
  • Australia
  • New Zealand
  • UK
  • Germany
  • Gibraltar

Channel Partners in:

  • UK
  • South Korea
  • Hong Kong
  • UAE
  • US
  • South Korea
  • Hong Kong
  • China
  • UAE
  • Singapore

Tesserent and our Channel Partners service around 350 organisations across 11 countries and territories

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Gartner predicts “by 2020, 60% of enterprise information security budgets will be allocated to rapid detection and response approaches — up from less than 10% in 2014”

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Responding to Market Changes

  • Tesserent continues to expand our product offering in-line with world-class

practice.

  • Tesserent has recently been appointed as APAC Platinum Partner with Alien

Vault – leading Security Information and Event Management (SIEM) vendor.

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Nov Oct Sep Aug Jul Jun May Apr

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Signed new US Channel Partner Agreed MyNet sale $3.8m Received first 2 orders from US Channel Partner New Education Sector Sales

Milestones Since Listing

Blue Reef acquisition

Mar Feb

Agreed Family Zone Partnership 150 new Education customers Awarded AlienVault Platinum Partnership 30% YoY revenue growth New Corporate Customer validates approach Cyber Safety Symposium Appointed Sales & Marketing Executives Appointed Senior Operations Executive Expanded Sales Team Sydney, Melbourne & Singapore

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Proven Business with Strong Customer Validation

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  • Existing blue-chip client

base

  • Strong Customer Growth

within the defined market segments of Education, Local Government, and Corporate & Enterprise

  • Since successfully listing,

the Directors have shifted focus onto strategic and growth related opportunities

  • New contracted revenue

from a recently-won deals with blue-chip organisations

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Investor Relations

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  • We strive to keep our investor community updated and well informed via regular

market announcements.

  • We have recently revised our Investor Relations agency arrangements, with two

new appointments:

  • NWR: Public Relations and Investor Relations
  • Finance News Network: Video interviews and investor communications
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In Summary

  • The global security market is experiencing exponential growth due to a significant increase

in cyber attacks.

  • Tesserent has local, world-class technical capabilities.
  • Tesserent has established partnerships with leading global OEM security vendors.
  • Tesserent maintains a strong customer base of small, medium and large firms, including

blue-chip companies.

  • Tesserent has successfully acquired Blue Reef Pty Limited to grow education business.
  • Tesserent has demonstrated the ability to negotiate strategic and profitable sale of assets as

appropriate – most recently MyNet IP for $3.8m.

  • Tesserent continues to explore future opportunities for strategic acquisitions.
  • Tesserent is set to grow.
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Contacts

Investors

Nick Kapes Novus Capital Limited Level 8, 330 Collins St Melbourne Vic, 3000 T: +61 3 8602 1714 M: +61 438 354 443 nick.kapes@novuscapital.com.au

Media

Warrick Lace NWR Communications Level 7, 333 Collins St Melbourne Vic, 3000 T: +61 404 656 408 M: +61404 656 408 warrick@nwrcommunications.com.au