Weekly Barometer 25 janvier 2012 2 Investment Case Like many - - PowerPoint PPT Presentation

Weekly Barometer

25 janvier 2012

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Investment Case

➢ Like many other industries, security is in the early stages of its digital and tech transformation thanks to innovations in artificial intelligence, robotics and augmented reality ➢ This tech upgrade cycle gives confidence that the current capex and government spending momentum will last several years and that private contractors will keep delivering above-consensus revenue and earnings growth ➢ Space exploration could be another major source of upside for private contractors as the US plans missions to the Moon and beyond and as the new NASA Administrator is a proponent of outsourcing some of the NASA’s operations to the private sector ➢ Government-led space exploration will also give a boost to commercial space in the medium term ➢ Civil security will be in the spotlight as the Internet of Things opens the way to new cyber attacks and as smart cities become reality, pointing to strong demand for smart devices, inspection and detection systems and cyber security

Security & Space Certificate details

✓ Issuing bank: Natixis, Calculation agent: Natixis SA ✓ ISIN: XS1317057278 ✓ Currency: USD ✓ Fees: 1.65% management fee + 15% performance fee, high water mark ✓ Bloomberg ticker: NXSRGDEF

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Space Biometrics & CyberSecurity New Generation Technologies Security Devices Smart Cities & Homes

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Security: A Major Tech Upgrade Cycle Is On Its Way

➢ With the rise of Internet of Things, security threats will only keep growing and society will have to adapt ➢ Against this backdrop, companies are investing in new technologies that identify, analyze and process threat-related data

Network security Authentication Data analytics Data encryption Devices installation Threat prediction

➢ Thanks to the Internet of Things and Artificial Intelligence, smart cities are about to become reality ✓ Traffic and parking space management, safety and law enforcement and smart grids will be in the spotlight

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The Rise Of Smart And Safe Cities (I)

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The Rise Of Smart And Safe Cities (II)

FACIAL RECOGNITION BODY-WORN CAMERAS CYBERSECURITY SENSORS AND DRONES SMART HOME CAMERAS SECURITY CAMERAS/ VIDEO ANALYTICS

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Biometrics To Identify, Target and Protect

➢ Biometrics uses facial image, fingerprint, iris, DNA or voice pattern to identify individuals

✓ Biometrics has many applications:

Accessing corporate buildings Accessing devices Opening one’s house door Unlocking car doors

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The Internet of Things Opens the Way to New Cyber Attacks

➢ All connected devices and systems will be exposed to security threats ➢ Attacks on the IoT will hit healthcare, financial services, manufacturing…

50% of new business processes and systems will include an IoT

component by 2020 (source: Gartner)

Pacemakers can be attacked remotely

ATTACKS

Take control Steal information Disrupt services Controls for smart doors locks or lighting systems can be vulnerable Infotainment systems are exposed to threats

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Cyber Security: A Major Action Field For Both States And Corporations

➢ The cyber security market is expected to grow from USD122bn in 2016 to USD202bn by 2021, a 10.6% CAGR (Source: Research and Markets) ➢ How to protect against cyber attacks?

Network security Data encryption

Data encryption translates data into another form, or code, so that only people with a secret key can access Security features such as antivirus and antimalware as well as firewalls and intrusion prevention and detection systems

Data analytics Authentication security

Robust authentication mechanisms such as two-factor authentication, digital certificates and biometrics Collecting and monitoring data to build predictive and anomaly detection models

➢ Two directives are boosting cybersecurity requirements in the European Union

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➢ All companies involved in the digital transformation will have to reach a standard of protection

Cybersecurity Spending To Get A Boost From Regulations

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Space Tech: From Next-Gen Satellites To Space Tourism

Stratobus – project for 2020: half satellite and half drone (Thales) Space-Based Laser – intercepts missiles or destroys satellites ➢ Space discovery is no longer a sleepy dream, but a major global challenge for the emancipation of digitalization and interconnection NASA's Mars InSight Lander

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➢ During the Cold War, the US and the Soviet Union used space exploration to:

Space Exploration Enters Into Its Next Chapter

➢ The return to the Moon and the potential first journey to Mars planned by the US are intended to Develop security applications Demonstrate technological advantage Ensure the survival of the human species Better understand our planet Get some hints about the origin of life

CST-100 Starliner is planning to fly for the first time NASA astronauts to the ISS by December 2018

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Space Exploration A Major Source Of Revenue For Private Companies

➢ The NASA budget is expected to balloon over the years to fund these new space missions ➢ Importantly, the NASA is expected to develop public-private partnerships with the likes of:

(Northrop Grumman)

Dragon V2, a new version of the spacecraft, will take astronauts to the space station Cygnus spacecraft is on its way to the International Space Station

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Commercial Space To Develop In The Medium Term: Space Tourism First

Georges Whitesides, CEO Virgin Galactic

Blue Origin (Jeff Bezos) is developing the New Shepard to enable short- duration space tourism Virgin Galactic (Richard Branson) provides suborbital spaceflights to space tourists SpaceX CEO Elon Musk shared a picture

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his company’s new space suits

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Asteroid Mining Will Fuel Travel Within Space: A Modern Day Gold Rush

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Satellites have four major roles

➢ Space exploration is a source of innovations in the fields of healthcare, materials, robotics and transportation systems ➢ But also remains important in defense-related fields such as aeronautics and IT & Telecoms (satellites) ➢ Satellites appear as a major actor in the global security value chain, creating the fundamentals for telecommunication technologies

Satellites Make The Link Between Space And Earth

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Security And Innovation Share A Common History (I)

➢ Many civilian technologies and innovations find their roots in security Research. The CIA has its

• wn venture capital company that invests in Silicon Valley start-ups (Q-Tel)

Innovation

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Security And Innovation Share A Common History (II)

Medical Technologies

The Defense Advanced Research Projects Agency (DARPA), responsible for the development of military technologies, has been working for years

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Exoskeletons The military played a role in the development

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vaccines in order to fight epidemics The first automatic injection device, the ComboPen, was invented in the 70s for a military use. The civil device to treat allergic reaction, the Epipen, was approved in 1987 by the FDA The first blood bank was created in 1917 for the US Army Medical Corps. Blood could be stored and used in battlefield surgery. It paved the way for modern blood storage techniques

Conclusion: Innovation At The Heart Of Security And Space

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Technology as a driver of space exploration

✓ Outer Space Discovery ✓ Connectivity ✓ Reconnaissance ✓ Satellites & telecommunications

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➢ Innovation at the service of security and public safety

✓ Real time surveillance & smart cities ✓ Cybersecurity & biometrics ✓ Security of IoT devices ✓ 5G

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