September 2017 - daks2k3a4ib2z.cloudfront.net · 0 10 20 30 40 50 60 1990 1992 1994 1996 1998 2000...

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September 2017

Transcript of September 2017 - daks2k3a4ib2z.cloudfront.net · 0 10 20 30 40 50 60 1990 1992 1994 1996 1998 2000...

Page 1: September 2017 - daks2k3a4ib2z.cloudfront.net · 0 10 20 30 40 50 60 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 vices year large and rapidly growing

September 2017

Page 2: September 2017 - daks2k3a4ib2z.cloudfront.net · 0 10 20 30 40 50 60 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 vices year large and rapidly growing

DISCLAIMER

This communication expressly or implicitly contains certain forward-looking statements concerning WISeKey International Holding Ltd and its business. Such statements involve certain known and unknown risks, uncertainties and

other factors, which could cause the actual results, financial condition, performance or achievements of WISeKey International Holding Ltd to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. WISeKey International Holding Ltd is providing this communication as of

this date and does not undertake to update any forward-looking statements contained herein as a result of new information, future events or otherwise.

This corporate presentation does not constitute an offer to sell, or a solicitation of an offer to buy, any securities, and it

does not constitute an offering prospectus within the meaning of article 652a or article 1156 of the Swiss Code of Obligations or a listing prospectus within the meaning of the listing rules of the SIX Swiss Exchange. Investors must rely on their own evaluation of WISeKey and its securities, including the merits and risks involved. Nothing contained herein

is, or shall be relied on as, a promise or representation as to the future performance of WISeKey.

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VISION

Premier Cybersecurity company offering digital security for large scale Internet of Things (“IoT”) and digital identity ecosystems

Authenticate and secure devices, websites, people, and documents as well as the communication between them for enterprises and government agencies

Maximize experience value and enhance trust with authenticated secure device data

Ensure secure connection of People-to-Machines and Machine-to-Machines, creating new opportunities to:

Enhance quality of life (confidentiality, security and reliability online)

Improve existing businesses and empower new ones

Optimize processes, resources and end-user experience

Reduce risk for service/product providers and users

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Founded in 1999

COMPANY SNAPSHOT

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Headquartered in Geneva, Switzerland

Cybersecurity and IoT Technology Platform

Employees: 165 worldwide

SIX Swiss Exchange (SWX: WIHN)

3,400+ clients worldwide

Clients

3.6 Billion 400 Million 1 Million 800 Million 1.6 Billion 200 Million 120 Million 1.2 Million 250 Million

Browsers (total) Root of Trust installed

New browser per year Root of Trust Installed

Watches – WISeKey asymmetric keys

IoT chips – WISeKey VaultIC chips since 2010

Mobile OS (total) Root of Trust installed

Mobile OS per year Root of Trust installed

CertifyID and WISfans (personal identities)

WISeKey apps downloaded

Digitally signed emails per year

Key Figures

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SECURE IDENTIFICATION IN THE DIGITAL WORLD

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Everything and everybody connected to the Internet needs to be secured via a digital identity!

Digital identities for individuals, legal entities, servers, devices and program code

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• Critical Accreditations

WE ARE IN THE DIGITAL TRUST BUSINESS ACCREDITATIONS & COMPATIBILITY ARE THE VERY FOUNDATIONS

• Multiple Roots of Trust - Global Ubiquity - Trusted by the Browsers and big software companies

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Regional Europe

eIDAS

Global

ISO 27001

Operating Systems Browsers Applications Frameworks

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CYBERSECURITY THREAT IS THE SINGLE GREATEST CHALLENGE FOR BUSINESS TODAY

Consumers need reassurance they are safe online

Targeted attacks on the rise Data is the new perimeter Service/Product/Person

digital interaction is new norm

PRIVACY PRODUCTIVITY THEFT SAFETY

Control garage door

locking

Fraud

Payment

Hacking

Unlock remotely

Spying

Infotainment system

Malware attacked

Pacemaker malfunction

Activate alarm sensor

Shut down factory

Steal Company

know-how Reduce energy supply

Stop alarm sensor

Turn off engine

Private Health data

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1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020

Bill

ion

s o

f D

evic

es

Year

LARGE AND RAPIDLY GROWING MARKET OF CONNECTED IOT DEVICES

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2003 - 0.5 Billion Devices 1992 - 1,000,000 Devices

2009 - IoT Inception

2012 - 8.7 Billion Devices

2013 - 11.2 Billion Devices

2014 - 14.4 Billion Devices

2015 - 18.2 Billion Devices

2016 - 22.9 Billion Devices

2017 - 28.4 Billion Devices

2018 - 34.8 Billion Devices

2019 - 42.1 Billion Devices

2020 - 50.1 Billion Devices

Source: NCTA

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SECURITY IS OFTEN AN AFTERTHOUGHT TO CONVENIENCE / EASE OF USE IN IOT

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Example IoT Security Breaches

I. WikiLeaks release of CIA documents revealed internet-connected TVs can record conversations

II. Mirai botnet infecting routers and IP cameras used

to flood DNS provider DYN with a DDOS attack in October 2016

III. Cybercriminals shut down heating of two residential buildings in Finland for 1 week in November 2016 after attacking unprotected building management systems

IV. A report in January 2017 by Verizon Enterprises described an unnamed university that saw over 5,000 IoT devices attacked via a botnet

V. In 2016, The Wiesmann Institute of Science demonstrated that virus infecting connected wireless lamps, drone or connected cars could spread to smart cities containing millions of interconnected devices

Leading Technologies for IoT Security1

1) IoT Network Security

2) IoT Authentication

3) IoT Encryption

4) IoT PKI

5) IoT Security Analytics

6) IoT API Security

WISeKey Area of Focus

1. Forbes, “6 Hot Internet of Things (IoT) Security Technologies”, March 20, 2017

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INTEGRATED IoT PLATFORM «RoT to Chip»

WISEKEY VERTICAL CYBERSECURITY PLATFORM

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Secure Element

Secure Micro-processors

Tamper Proof highest level

Chip

Integrated Circuit

Strategic Partners

Secure Algorithms

Business Analysis

Shared Distributed

Ledger

Identity

SSL

eBilling

Encryption

eSignature

Secure Mail

MDM / IoT

Autorisation

Common Criteria EAL 4++

EMV

SELECT SOURCING VIA CENTERS OF EXCELLENCE/PARTNERS

CYBERSECURITY SAAS MPKI & SIGNING SERVICES

SEMICONDUCTORS & IOT IOT SECURITY & ANTI-COUNTERFEITING

ARTIFICIAL INTELLIGENCE & BLOCKCHAIN

Vault IC NFC

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Cloud-based Infrastructure-as-a-Service that enables organizations to issue, renew, and revoke digital certificates

2016 mPKI revenue (% of mPKI revenue): 35% Percentage of recurring: 80%

Managed Public Key Infrastructure (mPKI) Digital Signing Services (sign)

Electronic signatures and time stamp solutions used by individuals and corporations to produce legally bound documents

2016 signing revenue (% of mPKI revenue): 20% Percentage of recurring: 100%

CYBERSECURITY SAAS: QUOVADIS COMPLEMENTING THE MPKI OFFERING

Certificate Authority that issues digital certificates that can be used to power strong authentication and encryption

2016 SSL revenue (% of mPKI revenue): 30% Percentage of recurring: 100%

Digital Certificates (SSL) Digital Identification (eIDs)

Certificates that are enclosed as part of individual electronic ID cards or devices and used to authenticate and / or secure access to government or regulated services

2016 eID revenue (% of mPKI revenue): 15% Percentage of recurring: 80%

mPKI

Services

Digital

Signing

Services

eIDs

SSL

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Industrial/Automotive Smart Cities Authentication IT infrastructure Smart home/ Medical

IT Companies ‘Going Out’

Cu

sto

mer

s N

eed

s

Large scale manufacturers

Automotive Industry

IoT wearables

Home electronical appliances

E-Commerce

Luxury Goods

Pharma Industry

IoT companies that deploy their products in cities

Solve the security concerns from foreign governments

Secure networks

Encryption technologies

Routers and modems need to be secured

Creating an identity of all connected devices or persons

Implementing ID management solution

Secured traceability into the production and distribution chain

Health monitoring and measurement

Secured E-transactions

Protection against fraud and abuse

Protection against counterfeiting

Secured traceability into the production and distribution chain

Protection against warranty fraud

Infrastructure control such as water supply management

Lighting and waste management

Security (video surveillance, fire alarms)

Pollution sensors

WISeKey provides secure communication network with digital identification and

authentication

Combination of established Root of Trust and NFC technologies, consumers are able

to securely use intelligent devices

NFC enabled phone connects with device and verifies the devices identity and

authenticity

Providing smart cities with a scalable and easily manageable object identity

management and security solution

Root of Trust Services

CertifyID Services

WIS

eKey

Pro

du

cts

WISEKEY: PRODUCT/SERVICE USE CASES

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• Cisco IT SSL and Managed PKI services: WISeKey QuoVadis are providing Cisco Systems SSL certificate services for Cisco’s IT resources and assets.

• Cisco Equipments: WISeKey Semiconductors are providing secure chips as Trust Anchor module

• IoT and device SSL certificates for Cisco products/devices: WISeKey QuoVadis to provide high volume device SSL certs for Cisco system devices and services.

• Cisco are working with WISekey to deploy mPKI services and secure chips to address a range of needs both internal and external

CASE STUDY : CISCO

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Security Broker

CISCO IoT Database and Applications

CISCO Device

Root Key

CA

Certificate Status log

Certificate

Managed Services

Certificate and Certificate Owner

Certificate Attribute

Certificate Management

System

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• Holistic approach among Competitors • Competitors in each vertical

CREATING THE FIRST EVER FULLY INTEGRATED TRUSTED IOT PLATFORM

Root of Trust

Secure Identity

Digital Signature

Internet of Things

Semiconductors

Blockchain

Artificial Intelligence

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PLATFORM MONETIZATION / BUSINESS MODEL

Category Description

Semiconductor IoT

31 million ICs Sold in H1’17 IC ASP is approximately $0.50 Secure element for IoT Devices H1 2017 Gross Margin 46%

Cybersecurity SaaS Managed certificate / Signing services and provisioning 90% Recurring Revenue H1 2017 Gross Margin 68%

Combined Platform Cross-sell Cypersecurity/SaaS into semiconductor installed base/vice versa Bring to market bundled solution to customers Good momentum <6 months since close of QuoVadis Acquisition

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RECENT MOMENTUM

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Company Nature Product Description Country Estimated Start Date

Term Years

Automotive Manufacturer

New Win mPKI Enterprise Level / PKI for IoC 2017 / 2018 3

Automotive Manufacturer

Upsell PKI for IoC / MPKI SSL / TLS 2017 / 2018 5

Software Provider

Upsell mPKI Enterprise Level 2017 / 2018 3

Financial Services

Upsell mPKI Enterprise Level 2017 / 2018 3

Automotive Manufacturer

New Win PKI for IoC (Connected Cars) 2017 / 2018 5

Machinery & Equipment

Upsell PKI for IoE (Connected Elevators) 2017 / 2018 5

Conglomerate Upsell Signing Services (eIDAS) 2017 3

Page 17: September 2017 - daks2k3a4ib2z.cloudfront.net · 0 10 20 30 40 50 60 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 vices year large and rapidly growing

Semiconductor IOT

Cybersecurity SaaS

Integrated Platform

LEADERSHIP POSITION

Differentiation Competitive Landscape

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Trusted brand – best-in-class technology with benefit of Swiss neutrality, security and privacy laws

Integrated platform

Only Root-of-Trust to Secure Chip provider

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WISeKey’s Managed Cryptographic Root of Trust leverages the SAP HANA® Cloud Platform to secure IoT devices

Key Strategy: Collaboration to Secure IoT Edge Devices Bringing payments to luxury brand watches and wearables

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Bring payments to any consumer gadget, accessory or wearable devices – from fitness bands to refrigerators

STRONG PARTNER ECOSYSTEM

CenturyLink resells WISeKey’s cybersecurity solutions to businesses

Providing cybersecurity solutions Bringing Innovation and Security to IoT across the Globe

Providing smart cities with a scalable, easily manageable object identity management

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Expand into new geographies – India, China, U.S.

Expand into new vertical end markets / areas – blockchain ledgers, smart cities, etc.

Cross-sell software into installed based of semiconductor IOT customers

Expand partnership ecosystem

GROWTH OPPORTUNITIES – LEVERAGE CORE TECHNOLOGY

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INVESTMENT HIGHLIGHTS

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Technology leader with integrated platform

Core technology is horizontally-applicable with increasing adoption across

industries

Large installed base of blue-chip customers

Multiple vectors of growth leveraging core technology

Serve a large and rapidly-growing cybersecurity IoT market

Attractive financial profile

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WISEKEY: THE LEADERSHIP TEAM

Board of Directors

Juan Hernandez Zayas CEO Grupo Cosimet, Sociedad Limitada

Carlos Creus Moreira Chairman & CEO WISeKey

Philippe Doubre President and Secretary General World Trade Center Geneva

Peter Ward Chief Financial Officer WISeKey

Tom Whayne Former Managing Director, Rothschild

Maryla Shingler Bobbio Managing Director, Argentum Group SA

David Fergusson President & Co-CEO The M&A Advisor

Dourgam Kummer Former Chief Operating Officer WISeKey

Management Team

Bernard Vian

General Manager, Semiconductor IOT

More than 25 years of experience in the Secure Semiconductor Industry

Joined INSIDE Contactless in 2002, a leader of NFC payment chip supply in the US

Joined WISeKey as head of Semiconductor division through acquisition of Inside Secure

Carlos Moreira

Chief Executive Officer

Recognized early stage pioneer in the field of digital identity

Adjunct Professor of the Graduate School of (RMIT) from 1995 to 1999

Chair World Economic Forum Global Agenda on Internet

Founder and CEO of WISeKey

Peter Ward

Chief Financial Officer

Chartered management accountant

Significant international experience in the IT, FMCG, medical equipment,

plastics and Biotech industries

Joined WISeKey in 2008 ; Group CFO and a member of the Board since 2012

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Roman Brunner

General Manager

QuoVadis

More than 25 years of experience in the global IT Services industry

Served in general management positions for Comdisco Inc., the largest provider of disaster recovery and IT leasing solutions

Joined QuoVadis in 2003

Carlos Moreno

Interim Chief Operating Officer

More than 20 years of experience in Sales and

business development

Product management and design of solutions

and architectures

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Financial Overview

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Annual Revenue Biannual Revenue

STRONG REVENUE GROWTH

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($ in millions) ($ in millions)

- 2017 Guidance per company press release on September 19th 2017 - 2H 2017 Guidance equals 2017 Guidance from September 19th 2017 press release less 1H 2017 actual results

$2.3

$11.0

$50.0

2015 2016 2017 Guidance

$1.6

$9.4

$21.2

$28.8

1H 2016 2H 2016 1H 2017 2H2017 Guidance

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Gross Margin

Margin Drivers

Attractive Gross Margin Profile

Platform Preference

Cybersecurity SaaS Increasing volumes of

standard managed services (SaaS)

Semiconductor IoT End of onerous contract

in 2018 (from Inside Secure acquisition)

Operational Excellence & cost control

Cybersecurity SaaS Recurring Revenue Higher than Overall

Gross Margins Semiconductor IoT Increasingly enable

incremental software sales with “razor / razor blade” go-to-market strategy

GROSS MARGIN PROFILE

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40.4%

49.1%

2016 1H17

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TARGET FINANCIAL MODEL

$ in Millions 2016 1H 2017

Total Revenue $11.0M $21.2M

IoT Revenue $8.4M $15.0M

Cybersecurity/ mPKI Revenue

$2.6M $6.2M

% of Revenue 2016 1H 2017

Gross Margin 40.4% 49.1%

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