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CYBER-SECURITY
AND GOVERNANCE
SOLUTIONS FOR
INFORMATION SYSTEM
ACCESS
INVESTOR
PRESENTATION
OCTOBER 2018
Specialist in
Privileged Access
Management
Supporting Information System
security governance and
protecting strategic content
and assets
1
WALLIX IN A NUTSHELL
Cyber security
software developer
€11.5m
revenues
94employees
670+clients
Data at June 30, 2018
55countries
THREATS
2
CYBER ATTACKS: THREATS IN MANY FORMS AND HIGH STAKES
GOVERNMENTS
PARTNERS
EMPLOYEES
COMPETITORS
HACKERS
STAKES
STRATEGIC
IMAGE & REPUTATION
LEGAL & REGULATORY
ECONOMIC
80% OF CYBER ATTACKS ORIGINATE FROM INSIDE THE COMPANY
Corporate data
3
NEW CHALLENGE: PROTECTING CORPORATE
IDENTITIES, ACCESS AND DATA
Authorized internal and external
users
Unauthorized users
Hacked users
Creation of a trusted network to
ward off internal and external threats
ACCESS MANAGER
Web admin.
console
SESSION MANAGERReal-time
access
control
PASSWORD MANAGERPassword
management
END-TO-END ENCRYPTION
Secure data in all
applications
4
01FIRST HALF 2018
HIGHLIGHTS
CYBER-SECURITY AND GOVERNANCE SOLUTIONS FOR INFORMATION SYSTEM ACCESS
5
H1 2018: A PIVOTAL TIME IN THE HISTORY
OF EUROPEAN CYBER-SECURITY
Entry into force May 25, 2018
NIS DIRECTIVENetwork & Information
Security
GDPRGeneral Data Protection
Regulation
RGS decree(General Security
Guidelines)
Thousands of
operators of
essential services (OES)requiring protection
All
businesses and
organizationsrequire protection
249
operators of vital
importance (OIV)
requiring protection
SHORT TERM HURDLES BUT SIGNIFICANT OPPORTUNITIES FOR THE FUTURE
May 9, 2018
6
H1 2018 PRIORITY: BUILD THE FOUNDATIONS FOR A FURTHER
CYCLE OF STRONG GROWTH
BUILDING A MID-TIER EUROPEAN CYBER-SECURITY PROVIDER
2013 2014 2015 2016 2017 2018 2019 2020 2021
11,545AAGR 2013-2017: 44%
2,662
AAGR 2017-2020: 44%
Growth driver:Expanding the complementary
offering for WALLIX BASTION1
2
3
Sustainability:Reinforcing organizational
structure to support the scale-up
Financial security:Securing the funds to
implement the project
ACTIONS> 50,000
Revenues (€000)
7
PRODUCT INNOVATIONS DERIVED FROM
WALLIX R&D ENHANCED BY PARTNERSHIPS
TRACEABILITY
End-to-End Encryption / E2EE solution ensuring
protection of data in all applicationsANBLIC
FENTEC
IoT
Artificial Intelligence
Secure email
PMAIL
Antivirus
Equipment Protection
8
A MEANS OF EXPANDING OUR AREA OF GROWTH
Firewall
Network Protection
IAM
Identity & Access Management
PAM
Privileged Access Management
Ownership rate
Technology waves
Cloud Based Security Services (SaaS mode)
(IAM, PAM, encryption, etc.)
3,700 clients
370,000 clients
Age of
the PC
Age of
the
Internet
Age of
identity
and
mobility
Leader
9
WORKFORCE BOOSTED TO DRIVE LONG-TERM GROWTH
70
pers.
H1 2017
73
pers.
2017
64
pers.
2016
44
pers.
2015
79
pers.
H1 2018
STRATEGY DIRECTOR
DIDIER COHEN 2018
HUMAN RESOURCES DIRECTOR
DELPHINE SCHOFFLER DEVEVEY 2018
Most recent hires
▪ Sales teams (+11)
▪ Management Committee (+2)
DACH* SALES DIRECTOR
STEFAN RABBEN 2018
* Germany, Austria and central Europe
Average annual headcount
94
pers.
6/30/2018
10
SUCCESSFUL CAPITAL INCREASE TO DRIVE
THE NEXT PHASE OF DEVELOPMENT
Offering
Goals
€36.8m after full exercise of the extension clause
▪ Share issue subject to shareholder priority period
▪ Global demand more than 1.8 times over-subscribed (€58.9m)
Reinforce
Sales & Marketing
teams
Continued
investment in Products
20172021
83 pers.250 pers.
1/3 for
organic
growth
2/3 for
acquisitions Acquire new technological building blocks and/or
step up international deployment
11
02FIRST HALF 2018
RESULTS
CYBER-SECURITY AND GOVERNANCE SOLUTIONS FOR INFORMATION SYSTEM ACCESS
12
THRIVING BUSINESS IN H1 2018
Dec.
2014
Dec.
2015
220
300
Dec.
2016
420+
ACTIVE CLIENTS
Dec.
2017
570+
670+
June
2018
up from 62 in H1 2017
58% regulated sectors
(healthcare, industry, finance and telco)
18% sensitive sectors
(administration and public services,
defense and energy)
6 contracts worth over €100,000
(7 in H1 2017 including 1 worth over
€1m)
96 NEW CLIENTS
MAJOR SOURCE OF
POTENTIAL GROWTH
13
ANALYSIS OF H1 2018 REVENUES
French GAAP
Revenues (in € thousands)
€1 889
€2 922
€4 380
€5 425
H1 2015 H1 2016 H1 2017 H1 2018
+24%
BY BUSINESS
Licenses
(+13%)
Services
(-32%)
Maintenance
(+54%)
39.8%57.2% 3.0%
BY REGION
France
(+11%)
International
(+64%)
33%67%
H1 2017 H1 2018 Change
Revenues 4,380 5,425 +1,045
Other operating income 1,633 2,027 +394
Total operating income 6,013 7,452 +1,439
Purchases & inventory -119 -245 +126
Other operating expenses -2,047 -2,543 +496
Taxes and duties -114 -175 +61
Payroll -4,154 -5,275 +1,121
Depreciation, amortization and provisions
-899 -1,050 +151
Total operating expenses -7,333 -9,288 +1,955
Operating profit/(loss) -1,319 -1,836 +517
Financial income/(expense) -13 12 +25
Non-recurring income/(expense) - -2 +2
Tax expense -3 -1 -2
Net profit/(loss) -1,335 -1,828 +49314
PROFIT & LOSS STATEMENT
Increase in average
headcount
(79 vs 70) and Management team reinforced
Analysis
Increase in direct and indirect expenses related to business development (facilities, travel, trade shows, marketing, etc.)
Analysis
French GAAP
Consolidated data, in € thousands
15
CASH FLOW STATEMENT
Cash at
Dec. 31, 2017
Cash at
June 30, 2018
6,980
39,536
Gross cash flow directly proportional to operating income
Improvement in working capital through collection of trade receivables
Investments in technology up 16% to maintain the Group’s competitive edge
Sharp improvement in the Group’s cash position boosted by net proceeds from share issue
Gross
cash
flow
Ch. in
WC
CAPEX
-822
743
-1,521
Repay. of
borrowings
-137Share
issue
34,294
Analysis
Free Cash Flow -1,737
Consolidated data, in € thousands
French GAAP
16
BALANCE SHEET
12/31/2017 6/30/2018
Non-current assets 6,925 7,548
o/w Intangible assets 5,805 6,398
Current assets 15,135 47,336
o/w Trade receivables 6,377 4,811
o/w Cash and cash equivalents 6,981 39,537
Total assets 22,060 54,885
Shareholders’ equity 7,974 40,504
Provisions 650 693
Liabilities 13,436 13,688
of which Borrowings 1,950 1,814
of which Trade payables 868 1,717
o/w Prepayments* 7,628 7,834
Total equity & liabilities 22,060 54,885
Shareholder’s equity of €40,504,000
Net cash: €37,723,000
Prepayments of €7,834,000 including €5,653,000 prepayments on incomei.e. over 6 months’ revenues
Analysis
* Prepayments on income, CIR research tax credit and subsidies Prepayments on income correspond to the share of revenues invoiced and recognized for the financial year but for which the supply or service will occur after the financial year.
Consolidated data, in € thousands
French GAAP
17
SHAREHOLDER FACTSHEET
Breakdown of capitalat September 30, 2018
FOUNDERS
EMPLOYEES &
TREASURY
SHARES
CORPORATE
OFFICERS
PUBLIC FLOAT
Market data
INNOVATIVECOMPANY
ISIN code: FR0010131409
Ticker: ALLIX
Share price: €15.40
(Closing – October 16, 2018)
Number of shares: 5,645,271
Market capitalization: €87 million
Tracking analysts: Midcap Partners &
ODDO BHF
8.0%o/w T.D.H.
7.8%
15.5%
75.8%
0.7%
NO SHAREHOLDER HOLDS MORE THAN
10% SHARE CAPITAL (EXCL. CORPORATE
OFFICERS)
18
03OUTLOOK
CYBER-SECURITY AND GOVERNANCE SOLUTIONS FOR INFORMATION SYSTEM ACCESS
19
ROLL-OUT OF AMBITION 2021 PLAN
New
solutions
1
Geographical
expansion 2
Strategic
partnerships3
Cloud Based Security Services PAM, IAM, encryption,
etc.
PAM
*2bn*
$5bn*
* Market value in 2021
MAJOR INITIATIVES IN PLAY SINCE H2 2018
20
OCTOBER 2018: LAUNCH OF WALLIX BASTION 6.1
A MODULAR OFFER LENDING ITSELF TO THE CREATION OF STRATEGIC ALLIANCES
Launch of
Password Vault with secure passwords and SSH keys
Interoperability
with key players in IAM*
Simplified integration of enhanced authentication solutions (MFA**)
NEW FEATURES
SESSION MANAGERReal-time
access
control
PASSWORD MANAGERPassword
management
ACCESS MANAGER
Web admin. console
* Identity & Access Management / **Multi-Factor Authentication
AP
I
21
GEOGRAPHICAL EXPANSION: GERMANY
Munich:
Sales office covering the DACH region
Dedicated team of approx. 10 people by year-end:
1 Sales Director
4 Sales
3 pre-Sales
1 Channel manager
GLOBAL TARGET MARKET ≈20%≈80%
2017 2021
22
GEOGRAPHICAL EXPANSION: UNITED STATES
Boston:
Sales office covering North America
Dedicated team of approx. 5 people by year-end:
1 VP Sales
2 Sales
1 pre-Sales
1 Channel manager
GLOBAL TARGET MARKET ≈20%≈80%
2017 2021
23
GEOGRAPHICAL EXPANSION: CANADA
Montreal:
Office dedicated to customer support
24/7 support servicesfor all Group clients (Europe and US)
Customer Successdepartment17-strongby year-end
MAINTENANCE = GROWTH & RECURRING BUSINESS
MAINTENANCE
435
593
1 078
1 547
2 118
3 197
1 401
2 158
2012 2013 2014 2015 2016 2017 S1 2017 S1 2018
24
NEXT STEP: FOCUS ON ACQUISITIONS
ORGANIZATIONAL STRUCTURE IN PLACE FOR AN OPERATION AS OF 2019
3 potential acquisitionsreviewed but discarded
Acquisition opportunities under review:
Profile:
Technological building blocksand/or customer portfolio
Region:
Europe and US
25
A pivotal role in creating a European cyber defense
offering
Significant expansion in North America in target
segments
A technological leader in the strategic segment of
Privileged Access Management (PAM)
A positioning of excellence in Cloud-Based Security
Services
Leading cyber-security provider in Europe
Launch of
BASTION 6.1
Office opened in Boston
Office opened in
Munich
1
2
3
4
ALL GROWTH DRIVERS FOR THE AMBITION 2021 PLAN IN
EFFECT
Reviewing strategic
opportunities5
Launch of DataPeps +
interoperability with BASTION
www.wallix.com
@WALLIXCOM
27
TWO EXPERIENCED CO-FOUNDERS AT THE HELM
Founder of Aurora, a services company sold to
Business & Decision in 2003
Founding Chairman of the HEXATRUST club
Vice-Chairman of the Systematic Paris-Region
business cluster
Four years with Hachette Filipacchi
Medias as financial controller, Asia-
Pacific project manager (based in
Hong Kong) and then associate
publisher for the Group’s Hong Kong
and Chinese editions
Founder of multimedia communications
agency XLAB
Amaury RossetCo-founder and Chief Financial Officer
Jean-Noël de GalzainFounder and Chairman of the Management Board
