40
CYBER-SECURITY AND GOVERNANCE SOLUTIONS FOR INFORMATION SYSTEM ACCESS INVESTOR PRESENTATION APRIL 2018
CYBER-SECURITY
AND GOVERNANCE
SOLUTIONS FOR
INFORMATION SYSTEM
ACCESS
INVESTOR
PRESENTATION
APRIL 2018
1
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
Specialist in
Privileged Access
Management
Supporting Information System
security governance and
protecting strategic content
and assets
2
WALLIX IN A NUTSHELL
Cyber security
software developer
€11.5m
turnover
83employees
570+clients
Data at Dec. 31, 2017
55countries
01PRIVILEGED ACCESS MANAGEMENT: THE LATEST GENERATION OF
CYBER SECURITY SOFTWARE
CYBER-SECURITY AND GOVERNANCE SOLUTIONS FOR INFORMATION SYSTEM ACCESS
4
CYBER ATTACKS CAN DESTROY A COMPANY: FACT OR FICTION?
THE VIRUS IS SPREADING
September 2017
Cyber attack triggers a profit warning
80% of cyber attacks enter
via a privileged account*
September 2017
Personal data of 143 million Americans is
stolen
August 2017
Game of Thrones season 7, the main
source of subscriptions, is leaked
June 2017
A costly cyber attack
November 2017
57 million hacked users, a damaged image
2019
$2.1 trillionEstimated
annual cost
Source: Juniper research
* Forrester, The Forrester Wave: Privileged Identity Management Q3 2016
TRADITIONAL SOLUTIONS ARE
NO LONGER ENOUGH
5
CYBER ATTACKS, A GROWING RISK
more data to protect
DIGITIZATION
more users
(internal & external)
OUTSOURCING
more equipment to protect
IoT
more controls
REGULATIONS
Antivirus
Equipment Protection
6
A NEW AGE OF CYBER SECURITY
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
7
PRIVILEGED ACCESS MANAGEMENT: TARGET MARKET WORTH
$2 BILLION IN 2021
Source: Gartner
2015 2016 2017 2018 2019 2020
…supporting companies’ digital transformation
…effectively combating new forms of cyber attack
…guaranteeing compliance with regulations
PAM, a solution for…
2.3
0.69
$ billions
AAGR: 27%
8
NEW CHALLENGE: PROTECTING CORPORATE
IDENTITIES, ACCESS AND DATA
Authorized internal and external
users
Unauthorized users
Hacked users
SESSION MANAGERReal-time
access
control
PASSWORD MANAGERPassword
management
ACCESS MANAGER
Web admin.
console
Corporate data
Creation of a trusted
network to ward off
internal and external threats
022013-2017: EMERGENCE OF A PAM
LEADER
CYBER-SECURITY AND GOVERNANCE SOLUTIONS FOR INFORMATION SYSTEMS ACCESS
10
WALLIX BASTION: AN ENHANCED SOFTWARE SUITE
COVERING ALL PAM REQUIREMENTS
TARGET MARKET
TIME
PSM*
PAM on-premise
PAM
on-premise
and/or on-demand
IPO TODAY
IT / OT / IoT /
DevOps /
Cloud
IT
Start-ups &
SMEs
IT
Key accounts
SESSION MANAGER
PASSWORD MANAGER
ACCESS MANAGER
*PSM: Privileged Session Management. Sub-segment of PAM
11
WALLIX BASTION: A CLOUD READY SOFTWARE SUITE
12
WALLIX BASTION: MAJOR STRENGTHS
UNOBTRUSIVE REMOTE DEPLOYMENT (SOFTWARE) ON EQUIPMENT TO BE PROTECTED
SHORTEST PATH TO COMPLIANCE
IMPROVED SECURITY OF CRITICAL POINTS IN INFORMATION SYSTEMS
EASY ADOPTION, NO IMPACT ON TEAM PRODUCTIVITY
OPTIMIZED PURCHASE AND LICENSE COSTS
CSPN-certified by ANSSI*
* Premium security certification awarded by the French National Cyber Security Agency (ANSSI)
13KuppingerCole Report, June 2017
WALLIX BASTION: POSITIONING EXCELLENCE RECOGNIZED BY
SECTOR PROFESSIONALS
CYBERARK
CA TECHNOLOGIES
CENTRIFY WALLIX
LIEBERMAN SOFTWARE
BEYONDTRUST
THYCOTIC
IBM
BALABITMANAGEENGINE
BOMGAR
MT4 SOFTWARE
EMPOWERID
ONE IDENTITY
BALABIT
MT4 SOFTWARE
IBM
IBM
EMPOWERIDMANAGEENGINE
CA TECHNOLOGIES
CENTRIFY
LIEBERMAN SOFTWARE
BEYONDTRUST
THYCOTIC
CYBERARK
WALLIX
14
PRIORITIZING DIGITAL TRANSFORMATION AND REGULATIONS
PRIORITY SECTORS
FinanceIndustryHealthcare
DIGITAL
TRANSFORMATION
PCI-DSS
BASEL I, II, III
Sarbanes-Oxley
Act-SOX
SOLVENCY 2
NERC CIP
SP-800-82
ISO 27000
PGSSI-S / HIPPA
HDS
Telco/Cloud
LPM
HDS
HIPAA
PCI-DSS
ISO-27001/27018
REGULATIONS
Fintech
Insurtech
Industry
4.0
Connected
healthcare
IoT
Cloud
TIGHTENED EUROPEAN REGULATIONS IN 2018 (NIS & GDPR)
POSITIVE FEEDBACK FROM KEY ACCOUNTS
15
“Today we are continuing to deploy Bastion, as we
have shown that the solution is reliable, integration
is effective and it meets all our traceability and
automation criteria.”
Thierry Hec, PSA Group Security Expert
“Bastion has become the benchmark on the e-
health market. It’s a guarantee of trust that
reassures the client.”
Emmanuel Novice,
Head of E-health Services, Claranet
“Thanks to its access control and administrative
operation traceability features, Bastion has allowed
us to considerably strengthen our infrastructure and
equipment security.”
Stéphane Corblin, Network Architecture and
Security Manager, SIAAP
“It’s a case of fostering awareness among users,
administrators and service providers, rather than
thinking in terms of repression. Without trust, you
can’t do business.”
Benoit Fuzeau,
IT System Security Officer, CASDEN, Banque
Populaire
16
PARTNERSHIPS: A POWERFUL SALES DRIVER
Objective: enhance product
value-ad
Challenge: expand BASTION’s
functional coverage via software
building blocks or systems
Objective: offer joint interoperable
solutions
Challenge: joint deployment of solutions
offering synergies with BASTION
Objective: create strong
sales momentum
Challenge: offer partners
greater sales and
technical autonomy
160 PARTNERS IN FRANCE AND WORLDWIDE
SALES PERFORMANCE BOOSTED BY EXTENSION OF THE
OFFERING
Dec.
2014
Dec.
2015
220+
300+
Dec.
2016
420+
ACTIVE CLIENTSAVERAGE SPENDING IN €000 (1ST CONTRACT)
CONTRACTS > €100,000
570+
Dec.
2017
4
13
28
2015 2016 2017
x3.3
x2.2
2840
47
2015 2016 2017
+41%
+17%
Source: WALLIX / data at Dec. 31, 2017
2 contracts
> €1M
17
+80
+120
+150
18
EXPANDED MANAGEMENT TEAM TO STEER LONG-TERM
GROWTH
DIRECTOR OF OPERATIONS BASTION
DIDIER LESTEVEN
71 pers.
2016
83 pers.
2017
60 pers.
2015
34 pers.
2014
VICE-PRESIDENT PRODUCTS
SERGE ADDA
MARKETING DIRECTOR EMEA
EDWIGE BROSSARD
STRATEGY DIRECTOR
DIDIER COHEN
VICE-PRESIDENT SALES EMEA
XAVIER LEFAUCHEUX
VICE-PRESIDENT CUSTOMER SUCCESS
GREGORY ROUSSEAU
2017
2015
2016
2018
2012
2017
HENRI BINSZTOCK
INNOVATION DIRECTOR
2016
Total year-end headcount
03TURNOVER QUADRUPLED
IN 4 YEARS WITH
CAPEX UNDER CONTROL
CYBER-SECURITY AND GOVERNANCE SOLUTIONS FOR INFORMATION SYSTEMS ACCESS
2013 2014 2015 2016 2017
20
French GAAP
TURNOVER
€000
5,295
11,545
3,972
2,662
44% AVERAGE ANNUAL GROWTH IN 2013-2017
COUPLED WITH STRONG EARNINGS GROWTH
OPERATING PROFIT/LOSS
7,364
2013 2014 2015 2016 S1 2017 S2 2017
-1,765
-1,074
-287 -322
-1,319
+57%
AAGR 2013-2017: 44%
+474
21
French GAAP€000
BREAKDOWN OF 2017 TURNOVER
BY BUSINESS BY REGION
Licenses France International
SECTOR RECURRING BUSINESS
Regulated sectors
Healthcare
Industry
Finance
Telco/Cloud
Sensitive sectors
Administration and public
services
Defense
Energy
Licenses
for installed base
+ Maintenance
Licenses
for new clients
ServicesMaintenance
Other sectors
3.6%27.7%68.8% 26%74%
17%36%47% 42%58%
2016 H1 2017 H2 2017 2017YOY
change
Turnover 7,364 4,380 7,165 11,545 +57%
Other operating income
(capitalized production, subsidies, etc.)
2,878 1,633 1,916 3,549 +23%
Total operating expenses
(12,007) (7,333) (8,606) (15,939) +33%
o/w Other operating expenses
(3,810) (2,047) (2,078) (4,125) +8%
o/w Payroll (6,515) (4,154) (4,933) (9,087) +39%
o/w Depreciation,
amortization and provisions
(1,365) (899) (1,182) (2,081) +52%
Operating profit/(loss) (1,765) (1,319) 474 (845) -52%
Non-recurring income and expenses
102 - (182) (182) -
Tax - (3) (2) (5) -
Net profit/(loss) (1,683) (1,335) 285 (1,050) -38%
22
PROFIT & LOSS STATEMENT
Consolidated data, €000
French GAAP
Reinforcement of team to
support Group growth in line
with roadmap
Analysis
23
CASH FLOW STATEMENT
Consolidated data, €000
French GAAP
Cash at
Dec. 31,
2016
Cash at
Dec. 31,
2017
Gross cash
flow
Ch. in
WCCAPEX
New
borrowings
5,938
6,980970
2,411 (2,855)
857
Technological investment to
maintain the Group’s competitive
edge
New bank line of credit to increase
financial flexibility
Strong cash position at December
31, 2017
Analysis
Repay. of
borrowings
(474)
AK
134
Free cash
flow+52
New financing
+991
Net change
in cash+1,043
Positive flows
Negative
flows
24
BALANCE SHEET
ASSETSDec. 31,
2016Dec. 31,
2017
Non-current assets 5,610 6,925
o/w Intangible assets 4,619 5,805
Current assets 12,159 15,135
o/w Trade receivables 4,699 6,377
o/w Cash and cash equivalents 5,938 6,981
Total assets 17,769 22,060
EQUITY & LIABILITIES
Dec. 31,
2016
Dec. 31,
2017
Shareholders’ equity 8,817 7,974
Provisions 237 650
Loans and borrowings 1,572 1,950
Trade payables 523 868
Other payables and accruals 6,620 10,618
o/w Prepayments* 4,660 7,628
Total equity & liabilities 17,769 22,060
Consolidated data, €000
French GAAP
* Prepayments on income, CIR research tax credit and subsidies. Prepayments on income correspond to the share of turnover invoiced and recognized for the financial year but for which the supply or service will occur after the financial year.
Net cash: €5,031,000
(up €665,000 vs Dec. 31, 2016)
Prepayments on income:
€5,645,000
(up 85% vs Dec. 12, 2016 indicating
a strong acceleration in business)
Analysis
25
04WALLIX AND THE STOCK MARKET
CYBER-SECURITY AND GOVERNANCE SOLUTIONS FOR INFORMATION SYSTEMS ACCESS
26
WALLIX SHARE STOCK MARKET PERFORMANCE
Data at March 23, 2018
0 €
5 €
10 €
15 €
20 €
25 €
30 €
35 €
40 €
0
10 000
20 000
30 000
40 000
50 000
60 000
70 000
80 000
90 000
Volume
Cours clôture
DAILY TRADING VOLUMES€20
K
€17
4K
2016 2017
€354
K
2018
+186% since IPO
27
SHAREHOLDER FACTSHEET
Breakdown of capitalat Feb. 28, 2018
FOUNDERS
EMPLOYEES
&
TREASURY
SHARES
DIRECTORS FLOAT
Market data
INNOVATIVECOMPANY
ISIN code: FR0010131409
Ticker: ALLIX
Share price: €28.90
(Closing - March 21, 2018)
Number of shares: 4,044,710
Market capitalization: €117 million
Tracking analysts: Midcap Partners &
ODDO BHF
Next publication
H1 2018 turnover July 26, 2018
11.4% including
T.D.H
10.7%
21.0%
66.6%
1.0%
28
052018-2021: AIMING FOR EUROPEAN
LEADERSHIP
CYBER-SECURITY AND GOVERNANCE SOLUTIONS FOR INFORMATION SYSTEMS ACCESS
29
MARKET POSITIONING ALREADY STRONG WITH POWERFUL
OPPORTUNITIES
Strength Weakness
Opportunity Threat
Recognized technology leader position in
Privileged Access Management
Market deployment still limited outside France &
MEA
New protection requirements related to digital
transformation and a tightened regulatory framework
Competitive intensification of "Native Cloud”startups
30
HIGHLY PROPITIOUS EUROPEAN REGULATORY FRAMEWORK
FROM 2018, WITH FRANCE AT THE FOREFRONT
2015 -> 2018 2018 -> 2021
FINES OF UP TO 4% OF GLOBAL TURNOVER
NIS DIRECTIVENetwork & Information
Security
May 09, 2018
GDPRGeneral Data Protection
Regulation
May 25, 2018
RGS decree(General Security
Guidelines)
March 25, 2018
Several thousand
operators of
essential services (OES)requiring protection
All
business and
organizationsrequire protection
249
operators of vital
importance (OIV)
requiring protection
31
EXTENSION OF OFFERING AND PARTNERSHIPS TO DRIVE
DEPLOYMENT IN CLOUD BASED SECURITY SERVICES
New
solutions
1
Geographical
expansion 2
Strategic
partnerships3
Cloud Based Security Services
PAM, IAM, encryption, etc.
PAM
*2bn*
$5bn*
* Market value in 2021
ANBLICFENTEC
32
DataPeps: NO. 1 CLOUD BASED SECURITY SERVICES SOLUTION
GDPR ready
▪ Compliance with the GDPR
▪ Protects data even in the event of cyber attack –
data is unusable
Software as a Service
▪ Technology acquired through purchase of ML
State assets
▪ Easy deployment (SDKs, Outlook plugin)
▪ Two collaborative platforms:
TRACEABILITY
End-to-End Encryption / E2EE solution ensuring
protection of data in all applications
ENCRYPTION MARKET
ESTIMATED AT $2 BILLION*
* Source: Roland Berger
1
33
INTERNATIONAL EXPANSION OF SALES NETWORK
Main existing markets
New priority marketsPlanned new offices
Existing offices
Main channels of growth:
Regions:
German-speaking countries (DACH) and key US segments
Drivers:
Extend current partnerships and strengthen direct presence by opening new offices
Human resources:
Expansion of sales force in Germany and the USA
TARGET
MARKET≈50%
EMEA
≈100% EMEA
+ ≈50%
USA
2017 2021
2
34
STRATEGIC PARTNERSHIPS TO PLACE WALLIX AT THE
FOREFRONT OF DIGITAL TRANSFORMATION
Interconnect
Session Managerwith our IAM and
Password Vault offerings
3
Integrate
WALLIX solutions
into our identity
management offering,
mainly in Cloud
Associate
WALLIX solutions with
complementary offerings
to target new markets
(IoT, Big Data, AI, etc.)
A role in creating a European cyber defense offering
Significant expansion in in target segments
in the strategic segment of
Privileged Access Management (PAM)
35
WALLIX TARGET FOR 2021: EUROPEAN LEADERSHIP
IN CYBER SECURITY
A positioning of excellence in -Based Security Services
Leading cyber security provider in
TECHNOLOGY LEADER
CLOUD
NORTH AMERICA
PIVOTAL
EUROPE
1
2
3
4
5
36
WALLIX TARGET FOR 2021: BUILD A FRENCH MID-TIER COMPANY
TO ASSUME EUROPEAN LEADERSHIP IN CYBER SECURITY
>€50m
2021e€11.5m2017
€2.7m2013
DEVELOPMENT PRIMARILY THROUGH ORGANIC GROWTH
Turnover
37
FINANCING REQUIRED TO DRIVE NEW CYCLE OF PROFITABLE
GROWTH
ReinforceSales & Marketing
teams
Continued
investment in Products
Planned headcount increase
2017
2021
83 pers.250 pers.
Financing plans
▪ Share issue without PSRs
subject to shareholder
priority period
▪ Capital injection of around
€30 million
▪ 1/3 for organic growth
2/3 for acquisitions
▪ Carried out before
summer 2018 subject to
market conditions and
approval of prospectus by
AMFPOTENTIAL ACQUISITIONS TO ACQUIRE NEW TECHNOLOGICAL BUILDING BLOCKS AND/OR STEP UP
INTERNATIONAL DEPLOYMENT
AND NOW …
www.wallix.com.
@WALLIXCOM
