Transforming Security Policy Management April 11, 2019 1 - PowerPoint PPT Presentation

Transforming Security Policy Management April 11, 2019 1

Disclaimer This presentation contains forward-looking statements. All statements other than statements of historical fact contained in this presentation are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these terms or other comparable terminology. These statements are only current predictions and are subject to known and unknown risks, uncertainties and other factors that may cause our or our industry’s actual results, levels of activ ity, performance or achievements to be materially different from those anticipated by the forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. For a description of the risks we face, see the “Risk Factors” section of th e prospectus we have filed with the Securities and Exchange Commission, which is available by visiting the SEC’s website at www.sec.gov. Except as required by law, we are under no duty to update or revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this presentation. In addition to U.S. GAAP financials, this presentation includes certain non-GAAP financial measures. These non-GAAP financial measures are in addition to, and not a substitute for or superior to, measures of financial performance prepared in accordance with U.S. GAAP. These non-GAAP measures are in addition to, and not a substitute or superior to, measures of financial performance prepared in accordance with GAAP. A reconciliation of non-GAAP measures to the most directly comparable GAAP measures is contained in the appendix to this presentation. This presentation contains statistical data that we obtained from industry publications and reports generated by third parties. Although we believe that the publications and reports are reliable, we have not independently verified this statistical data. The trademarks included herein are the property of the owners thereof and are used for reference purposes only. Such use should not be construed as an endorsement of our products or services. 2

We are the Security Policy Company Who can talk to whom? What can talk to what? 90%+ 2,000+ 424 30%+ 80%+ $85M Maintenance Global Customers 2 Employees 1 Gross Margin 1 Revenue Growth 1 Total Revenue 1 Renewal Rates 1 1 12 months ended December 31, 2018 2 Since inception 3

Investment Highlights Pioneering a policy-centric and automation-based approach to managing Security and DevOps Best-in-class suite of solutions transform security posture, enable continuous compliance and enhance business agility Centralized, real-time visibility of connectivity and security vulnerability across native, virtual and cloud environments Uniquely positioned to capitalize on a largely untapped $10bn+ security policy management market Diverse, blue-chip enterprise customer base with significant opportunity for further expansion Strong revenue growth coupled with balanced financial discipline Founder-led management team focused on innovation and with a proven track record of executing on growth opportunity 4

Enterprises are rapidly adopting Cloud and IoT – resulting in complex, fragmented networks and a huge attack surface In response, enterprises continue to implement additional firewalls and other security measures but most lack effective, comprehensive and automated policy management 5

Manual approaches cannot address today’s challenges Increasing Growing complexity Accelerating pace Evolving regulatory frequency and of software-defined of application and compliance sophistication of networks development and requirements cyberattacks deployment 6

We have developed highly differentiated technology with four main pillars: Cybersecurity and network ops require Policy-centric Automation of Data-driven Open and a new approach security network extensible changes framework Introducing a centralized security management layer that analyzes, defines and implements enterprise-specific security policies 7

Maximize Agility & Security with Security Policy Orchestration Implement security changes in minutes instead of days Tufin Value Reduce complexity of managing hybrid and Proposition fragmented networks Ensure continuous compliance with security standards Enable agile software development through tailored DevOps functionality 8

Highly innovative, broad suite of solutions FOUNDATIONAL AUTOMATION CLOUD-NATIVE SecureTrack ™ SecureChange ™ SecureApp ™ (2004) (2009) (2012) (Apr 2018) (Nov 2018) Firewall & Security Network Security Application Security Security Policy Change Connectivity Automation for Automation for Management Automation Management Containers & Public Clouds Microservices 9

Built for hybrid enterprise environments Enterprise Applications IT Operations DevOps Enterprise IT Cloud-Native IT Service SecureApp ™ Management Code Repositories REST APIs SecureChange ™ Scripting & Automation CI/CD Tools SecureTrack ™ Other 3 rd Party Solutions Unified Security Policy Analysis Engines Collectors and Provisioning Engines Firewalls Networks Private Cloud Public Cloud Containers 10

Tufin addresses a massive, high-growth emerging market Physical Network Public Cloud Security Private Cloud Orchestration SDN Orchestration $6.2B $2.9B $1.2B 1 2 3 ANNUAL OPPORTUNITY = $10.3B 4 1. Bottoms-up analysis is calculated using total number of firewalls within various customer segments (High End, Large Enterprise, Mid Enterprise, and SMB), level of compliance and automation need within each customer segment, and average compliance and automation spend per firewall. 2. Annual TAM represents an assumed 5% of orchestration spend based on annual public IaaS & PaaS markets. 3. Annual TAM represents management assumptions of security management spend based on Vmware NSX and Cisco ACI sales 4. 2019; management estimates and third party research. 11

Go-to-market strategy Our products and services are sold through our field and inside sales teams and global network of approximately Target CSIs Direct Regional 150 active channel Accounts Enterprise partners Top 2000 Channel Inside Centralized Territory Mid-Market Sales Top 2000-6000 Annual and Multiyear Renewals Payable in Advance Recurring Revenue 12

Land and expand across the network stack Customer Adoption Evolution SecureApp ™ Application Connectivity SecureChange ™ Change Automation SecureTrack ™ Compliance Platforms Firewalls Networks Private Cloud Public Cloud 13

2,000+ Customers Worldwide 1 FINANCE COMMUNICATION MANUFACTURING ENERGY HEALTHCARE & PHARMA RETAIL 1. Since inception. 14

Tufin Competitive Differentiation 10+ years of innovation Market leadership and proven track-record of success Mission critical in today’s Clear ROI over manual, error-prone spreadsheets that Cybersecurity and DevOps cannot keep pace with today’s application delivery cycle environments First-to-market with automation and superior topology mapping vs. competition 1000s Vendor-agnostic, scalable enterprise-grade solutions of Network Devices (e.g., Firewalls, Routers) Customer-first approach with premium support Integration, Customization, Optimization, Training services Source: Company information. 15

Case Study THE PROBLEM THE RESULT • Takes days to plan and implement Boosted agility, security network security policy changes and productivity • Lack visibility into accuracy of changes in network of more than 700 firewalls • Changes are automated and implemented in 1 hour THE SOLUTION • Improved overall security posture through well-defined SecureTrack ™ processes SecureChange ™ • Enabled team to free up resources to address SecureApp ™ strategic projects 16

Substantial growth drivers Cloud & DevOps New markets and • Address new use verticals cases in cloud and DevOps ecosystem Long tail – smaller • Recently entered enterprise accounts Japan Huge untapped • New federal program market in Global • Building Inside Sales • New MSSP offering 2000 for high velocity Land-and-expand sales model • • Upsell within install White space in base large enterprises 17

Experienced management team Ruvi Kitov Reuven Harrison Jack Wakileh Pat Walsh Kevin Maloney CEO, Chairman & CTO & Co-Founder CFO CMO SVP, Sales Co-Founder Raj Motwane Ofer Or Pamela Cyr Shaily Hamenahem Yoram Gronich VP, Global Services & VP, Products SVP, Business VP, Human Resources VP, R&D Support Development 18

Financial overview