Company Presentation - Cyan IR
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© cyan Digital Security 2021
Company Presentation
May 2021
1
© cyan Digital Security 2021
The digital world is an essential part
of our personal and business life.
Regardless of the reason we use it,
we are all connected to one system:
the Internet.
2
© cyan Digital Security 2021
Executive Summary
cyan, a leading cybersecurity provider, is expanding into untapped markets
utilizing its strong technology and mass-market capable products.
What we do What we plan What we offer
cyan offers seamless cybersecurity solutions via a white- cyan will capitalize on its traction in the telecom sector, cyan is one of the fastest growing European
label B2P2C approach to its telecom and insurance which offers massive opportunity, a favorable competitive cybersecurity providers.
industry partners’ large end-customer base (e.g., Orange, situation and a total estimated potential of USD 9 billion.
T-Mobile, Aon), allowing partners to generate additional cyan will have >70% recurring revenues in 2021
significant recurring revenue. cyan wants to advance in the insurance sector – a largely which are expected to increase even further.
untapped market with an estimated potential of USD 14
cyan has market-leading technology, i.e., patented or billion – through its mass-market offering. cyan’s solution with Orange France is already
proprietary intellectual property incl. complex algorithms publicly available – Orange Slovakia in Q4.
and security filter database – Highly scalable and self- cyan will establish its own branded app, to increase its
reinforcing through machine learning mass-market client base – A strong brand will also support cyan recently signed multiple new contracts (e.g.,
continued sales through B2P2C. Claro Chile, Seguros Equinoccial, MTEL, Skitto).
cyan benefits from asset-light, high-margin business
model with decreasing fixed cost structure allowing for cyan is focusing on recurring revenues from its cyan has a full pipeline consisting of blue-chip
substantial economies of scale and strong cash flow cybersecurity business. telecom and insurance opportunities.
conversion
3
© cyan Digital Security 2021
Milestones Achieved
Overview of corporate and business milestones
July 2018 May 2020 December 2020
July 2013
Acquisition of Contract with one Strategic partnership
Signing of first B2B2C
i-new (BSS/OSS of Vietnams leading with US based DNS-
contracts with
platform provider) telecoms for child provider for joint
T-Mobile Austria
and its customers protection as a product and world-
(now Magenta)
first step wide distribution
July 2020
January 2021
December 2018 Renewal of the
July 2006 March 2018 Frank von Seth
Contract with Orange contract Virgin Mobile,
cyan is founded and Initial public offering appointed as new
signed after winning a providing full
incorporated as cyan on Frankfurt Stock CEO to further
tender process against spectrum BSS/OSS
Networks Software Exchange (Scale drive growth
worldwide blue-chip including security
GmbH in Vienna, segment) competition products
Austria
B2B-startup B2B2C-transformation Consumer-centric growth
cyan started as B2B T-Mobile Austria (now Magenta) was the first partner – After a two year-long pitching process cyan won a group Launch of cyan branded app
network security Reaching 35% penetration of active user base in 2020 contract with Orange against a group of established
B2P2C: Our customers (telco and insurance)
provider After being acquired in 2017 cyan listed on the Frankfurt Stock cybersecurity competition – Validation of technology and
are partners in the quest to protect the end-
Exchange (Scale Segment) – The IPO was three times proof of business model for the cyan cybersecurity
customer
oversubscribed Aon and MobiFone contracts have further proven our
technological edge 360° security for end-customers’ devices by
The acquisition of i-new increased the number of employees extending to IoT, connected mobility, app
from 30 to over 120 and made cyan a truly global company integration, etc.
Source: Company information. 4© cyan Digital Security 2021
Management
Frank von Seth Markus Cserna Michael Sieghart
CEO CTO CFO
2021 – today 2018 – today 2018 – today
CEO of cyan AG CTO of cyan AG CFO of cyan AG
2018 – 2020 2011 – today 2010 – 2017
CCO, Aon AUT and SUI CTO of cyan Security Group Partner & CFO, Petrus Advisers
2006 – 2018 2019 – today 2013 – 2014
Various management positions, CEO of I-New Unified Mobile Member of the Board,
QBE, Aon Solutions Wiener Privatbank SE
2003 – 2006 2006 – 2020 1997 – 2009
CEO, Euler Hermes Japan Founder and CTO of cyan Networks Managing Director,
Deutsche Bank AG
Source: Company information. 5© cyan Digital Security 2021
01
Outstanding technology
Each solution is built around the same core technology
which results into sophisticated but standardized products
02
B2P2C Business Model
Millions of end-customers are accessed through blue-chip
partners in a B2P2C approach
Key Benefits
03
Recurring Revenue
Highly visible revenue growth through secured contracts
of the cyan
with long-term durations
Business Model
04
Lean Operations
SaaS-products with low marginal costs are available
Six good reasons to invest once the solution is integrated into the network
05
Asset Light Structure
Flexible IT cost structure and low capex per project as cyan rents
capacity at virtual data centers for sourcing and research process
06
Additional Upside
Application of core technology to new business segments
and expansion into further international markets
6© cyan Digital Security 2021
Use of mobile phones Using online payment systems
in daily business 33%
Growing awareness and 27%
demand for cybersecurity 23%
Increasing smartphone
Market Drivers for
5.2 billion people worldwide
already use mobile phones penetration (e.g., 90% for
US in 2025)
Half of world’s internet connections
Cybersecurity
are established via smartphones
2016A 2018A 2020E
Digitalization Online shopping Online banking
and Mobility
The number of unique mobile
subscribers is expected to
increase to 5.9 billion in 2025 51% 49%
46% 44%
Mobile phones have become 40%
an important part of our daily live 36%
The use of SIM cards worldwide
(including cellular IoT) is forecast
to expand to 13.2 billion by 2025
2016A 2018A 2020E 2016A 2018A 2020E
Source: GSMA Intelligence, GlobalData, company information. Note: Rounding differences may occur. 7© cyan Digital Security 2021
Market Drivers for
Identity Theft
Credit Card
Theft
Cybersecurity
< e-commerce Phishing
Phishing E-mails
and Vishing
Adware
Incessant
Potential
Cyberthreats
Ads
< Financial Payments
Attacks on mobile devices will increase
in volume and degree of sophistication
Clickjacking
< E-mails Scams
Malicious Code
Systematic
in Hidden
Buttons Fraud Total mobile malware
v in million detections¹
< Alarm Systems 200
180
160
CAGR
140
+36%
< Music Platforms Cryptomining
Ransomware 120
Data Encryption Pop-up Web
Browser 100
80
Social Media 60
40
Malware Bad Content
Worms, Trojans Violence and 20
and Viruses Pornography
0
2016 2017 2018 2019 2020
Source: GSMA, company information. ¹ Global detections of malware such as backdoors, crypto-mining, fake apps, banking trojans etc. 8© cyan Digital Security 2021
Technological Advantage Threat Intelligence
cyan Threat Intelligence feeds the security filter database on which cyan’s products
are built – Active sourcing, patented methods and self-reinforcing
#
Active sourcing
Sourcing via live analysis >300m entries
with ~200 virtual data centers Ensuring quality of solution
Continuous data flow +1.5m entries monthly
>1,000bn anonymized data Constantly evolving database
requests monthly to account for new threats
v
Artificial intelligence Continuous updates
Own patented AI algorithms Update frequency: 2 hours,
and human manpower Security Filter Real-time updates soon
Database
Cooperation Self-reinforcing
Sourcing via Cooperation More users generate more data
with security partners
Child Protection OnNet Security OnDevice Security
25 proven methods of analysis constantly update the proprietary security filter database
cyan’s products build on a security filter based on DNS technology, which is core to the modern internet
Source: Company information. 9© cyan Digital Security 2021
Cybersecurity Target Industries
cyan’s technology is applicable in MNO, insurance, and further targeted industries
New Business Segments
MNOs + ISPs Insurance MVNOs Own app with branded experience
High scalability - extremely High scalability – extremely Lightweight convergent platform and maximum market potential
large customer base large customer base One-stop solution for MVNOs and Untapped markets with large
Long-term customer retention Untapped market smaller MNO B-brands and fast-growing customer base
Project duration: 18-24 months1 Project duration: 6-9 months¹ High scalability through cloud based Evolving technology needs
CURRENT BUSINESS
GROWTH MARKETS
services frequent fine-tuning
cyan App
Crypto
Applications
Connected
Mobility IoT
White-labeled White-labeled and cyan branded cyan platform for MVNOs Branded B2C-app
and MNO B-Brands White-labeled and (co-)branded
B2P2C through network operators B2P2C through insurance
companies and brokers
Products
OnNet Security
OnDevice Security
Child Protection
BSS/OSS Platform
Source: Company information | ¹ Time from approval to go-live, depending on existing infrastructure. 10© cyan Digital Security 2021
Cybersecurity Market
Endpoint Network
Competition
Solution Integrated cyan‘s Seamless Security claim requires a
Provider Provider
multidimensional view – cyan ticks all checkboxes
IoT IoT with 3rd with 3rd Use-cases
excluded excluded party only party only Smartphones, PCs, fixed-lines, IoT, Kids
Target Industry
Insurance
Target Industry
Telecom
with 3rd with 3rd Convenient sign-up for end-customer
party only party only Customer convenience when logging in / signing up
White-labelled business model
Integration into client’s marketing vs. own brand
strategy
Integrated proprietary security database
with 3rd with 3rd
party only party only
Own research
Sourcing vs. buying lists only
Source: Leading market consultancy, company information. 11© cyan Digital Security 2021
Breakdown of total addressable mobile
cybersecurity market
MNO
Business 9.6 5.2
billion total mobile billion unique
Segment connections
Fixed line and IoT connection are
additional potential that will be
global subscribers
Total targeted in the future
Addressable
Market
cyan’s vision: 10% market share of 2.6
2.6 billion potential customers – billion unlikely
Up to EUR 7.8 billion total market customers
potential in MNO Accounts for feature phones and very
low-income countries as well as for 2.6
customers in unlikely markets with
different security standards such as
billion potential
China or Russia (both ca. 1.3 billion) customers
Market potential assuming additional
revenue of EUR 1-3 per customer is
between EUR 2.6 to 7.8 billion
Source: GSMA Intelligence, GlobalData | NOTE: Rounding differences may occur. | For simplicity reasons, the breakdown focuses on cybersecurity for mobile phones only – IoT (usually only protectable with the OnNet approach) will become a big topic in the mid-term future. 12© cyan Digital Security 2021
Breakdown of total addressable insurance
cybersecurity market
14
billion USD
Cybersecurity Insurance
Rapidly growing market (globally)
Insurers lack a mass-marketable solution
for consumers and SMEs
Insurance 217
Business billion USD
Homeowners‘ and Property Insurance
536
Bundling with home and property
Segment
insurance products in EU and NA
Devices are increasingly internet-
billion USD connected withing households
Total
Premiums written in targeted markets.
305
Adjusted premium for addressable market
(100% of cyber, 20% of P&C, 25% of health)
Addressable
and targeted markets for cyan
billion USD
Health Insurance
Market
Insurers want to provide “peace-of-mind”
solutions for customers in EU and NA
Insurance companies are seeking
value-added offerings to increase
the customer retention and decrease
claims – Total market potential of
USD 14 billion
28 14
billion USD billion USD
Market for Cybersecurity Add-On Market potential for cyan
Assumed average markup on premium: Market size after 50% revenue share
Cybersecurity insurance 20% = USD 3 billion with provider (based on experience)
Homeowners‘ and property insurance
10% = USD 22 billion
Health insurance 1% = USD 3 billion
Source: Company information (Management estimates) | NOTE: Rounding differences may occur. | For simplicity reasons, the breakdown focuses on cybersecurity for mobile phones only – IoT (usually only protectable with the OnNet approach) will be a big topic in the mid-term future. 13© cyan Digital Security 2021
Cybersecurity Roadmap cyan’s Own Branded App
Through establishing its own brand, and branded app, cyan increases its market potential – A strong brand also
supports continued sales through B2P2C
Corporate rebranding
as technology leader and
guardian angel protecting the
cyan is to focus on masses
A well-known and
stronger branding to Branding can also Co-branded apps are
Building support the current
strong brand will also
support sales of white-
improve the possible as win-win
a brand business and prepare
for the launch of an
label solutions to
negotiating position
with large MNOs
situation – combined
brand equity
MNOs and ISPs
own branded app
Non-traditional marketing
Investment in brand, marketing and customer experience approach utilizing the organic
reach and international
marketability within social media
Through an own
Launching branded app cyan can Independent of Higher revenue
Large parts of the
codebase already in
a branded target the full range marketing by a possible, as there is no
existence as a result of
of end-devices – mass distribution partner revenue share required
app marketability
insurance projects
Focus on customer experience
to retain customers, further
generate positive buzz and
increase word-of-mouth
Source: Company information 14© cyan Digital Security 2021
New Cybersecurity Business Segments
One technology – Four major opportunities for strategic growth
Connected Mobility Applications IoT Crypto
Cars are becoming internet-connected Two strategic target markets which Connected devices from home automation Crypto-currencies have become mainstream
high-tech computers on wheels experienced significant and sustainable growth: and smart speakers to wearables are over the past couple of years
Increased communication from Educational Apps / “Super Apps” booming among consumers
The pandemic has accelerated
Vehicle-to-Vehicle (V2V) and Vehicle-to- Digital shift with e-learning becoming the Increased amount of sensitive data investing and use of crypto-currencies
Infrastructure (V2I) for intelligent transport new norm during the pandemic – a market processed by always-on IoT devices among the general public
systems and autonomous cars estimated at USD 47 billion
The number of personal and wearable The high frequency of cyberattacks
At over 90 million motor vehicles to be sold, the Super apps in mobile first countries devices connected is estimated to reach on crypto-wallet providers and exchanges
automotive cybersecurity market projected have amassed large customer bases over 1 billion in 2022 make them an attractive market for
to reach USD 11 billion by 2030 and millions of transactions cybersecurity solutions
The number of IoT devices is
White-labeled and co-branded White-labeled and co-branded estimated at over 24 billion White-labeled and co-branded
B2P2C through manufacturers B2P2x White labeled and cyan branded B2P2C through crypto wallet providers
B2P2C through providers and B2C
Products
OnNet Security
OnDevice Security
Child Protection
Source: Company information | ¹ Time from approval to go-live, depending on existing infrastructure. 15© cyan Digital Security 2021
3 Final
Stage
Segment Pipeline
Status Q1 2021 10 Advanced
Stage
Full pipeline consisting of blue-chip telecom, 47
insurance and MVNO opportunities. OnNet
Security
Leads
2 Final
Stage
34 Early
Stage
3 Advanced
Stage
27
OnDevice
Security
Leads
5 Final
Stage 22 Early
Stage
8 Early
Stage
25
BSS/OSS
Leads
12 Advanced
Stage
Source: Company information | Note: Rounding differences may occur. 16© cyan Digital Security 2021
Recent
Operational Update
Highlights
Orange Slovakia
Roll-out of cybersecurity solutions in Slovakia
cyan looks back at some challenging months but where cyan will implement the full
achieved further progress with existing customers cybersecurity range – installation has begun;
Magenta Telekom expected launch in Q4 2021
and successfully managed to sign new contracts “Internet Protection Home” for fixed network
customers was launched, additionally to the
successful “Internet Protection” for mobile
Claro Chile
Claro Chile’s (América Móvil Group) 6.4m B2B
and B2C customers will be offered the full
Key financials 2020 Seguros Equinoccial
range of cyan cybersecurity solutions
in EUR million
The leading insurance company in Ecuador is
2020 2019
the second insurance partner to integrate
Earnings Figures
cyan’s OnDevice Security into their portfolio
Total earnings1 25.4 32.5 Orange France
Successful public launch of first product
EBITDA - 5.1 11.7 groups in France within Orange Pro (B2B) –
EBITDA-Margin2 - 24% 44% Orange Cyberfiltre and Cyberfiltre Avancé
MTEL
EBIT - 11.0 5.5 Extension of contract to cover Germany and
Switzerland after years of successful
EBIT-Margin2 - 52% 21%
cooperation in Austria – Significant expansion
Net income/loss - 9.3 4.5 by mid-2022 MobiFone
Child protection app has been launched in Q1
Earnings per share - 0.95 - 0.49 2021 and it is expected to implement further
cybersecurity solutions
Cash Flow Figures Grameenphone
Extension of partnership for the brand Skitto –
Operating cash flow - 8.7 - 5.8 Number of end-customers planned to double
Investment cash flow by the end of 2021
- 0.8 0.5 SMARTEL
Financing cash flow 1.8 11.8 cyan will supply its BSS/OSS platform to create
an MVNE for a new generation of MVNOs in
Balance Sheet Figures Central Europe
Secure64
Total assets 96.3 99.3 Strategic partnership to combine technologies
in the field of Domain Name Servers and jointly
Book equity 72.7 82.2 market the product
Net debt3 Virgin Mobile
7.3 - 5.1
Signing of expansion to its existing contract –
cyan provides BSS/OSS platform solutions
including Seamless Security
Source: Company information. | Note: Rounding differences may occur . 17
1 Includes revenue EUR 21.3m, other operating income EUR 2.1m, changes in inventories and capitalized own work EUR 2.0m; 2 EBITDA, EBIT divided by revenue; 3 Deductions of IFRS financial leasing liabilities and other liabilities from cash.© cyan Digital Security 2021
12.6%
Apeiron Investment
Group Ltd.
4.6% 10.3%
Management Tansanit Stiftung
Total number
9.7% Shareholder
Alexander Schütz
of shares
outstanding:
Structure
9,774,538 Based on shares held by individual
investors at cyan’s AGM in July 20201
48.7% 9.6%
Free Float alex schütz
familienstiftung
3.5%
Peter Arnoth
1.0%
Infinitum Ltd.
Source: Company information. | Note: Rounding differences may occur. | Only includes current management (Frank von Seth, Markus Cserna, Michael Sieghart) with numbers as of AGM in July 2020. 1 Including updates provided by shareholders. 18© cyan Digital Security 2021
Disclaimer
This presentation (the “Presentation”) has been produced for discussion purposes only. The Presentation is not a securities prospectus and the information contained therein does not constitute or form a part
of any offer or solicitation to purchase or subscribe for securities in the United States, Australia, Canada, or Japan or in any other jurisdiction in which such offer or sale would be unlawful. The securities
referred to in the presentation have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended, or under any applicable securities laws of any state, province, territory, county or
jurisdiction of the United States, Australia, Canada, or Japan. Accordingly, unless an exemption under relevant securities laws is applicable, any such securities may not be offered, sold, exercised, transferred,
delivered or distributed, directly or indirectly, in or into the United States, Australia, Canada, or Japan or any other jurisdiction if to do so would constitute a violation of the relevant laws of, or require registration
of such securities in, the relevant jurisdiction.
The information contained in this presentation does not constitute investment advice.
The Presentation is being made only to, and is only directed at, persons to whom it may lawfully be communicated (“relevant persons”). Any person who is not a relevant person should not act or rely on this
presentation or any of its contents. This presentation does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase any shares or other securities in cyan AG (the
"Company"), nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or commitment or investment decisions relating thereto, nor does it
constitute a recommendation regarding the shares and other securities of the Company.
The information herein pertaining to the company and its investments is fully confidential. Please do not publish or disclose it to any third party other than your attorneys, advisers, and others under binding
confidentiality obligations without the express prior written consent of cyan. The presentation does not constitute any legal advice. This must be done individually, taking into account the circumstances of the
individual case. The unaudited historical financial information and numbers of the company contained herein are preliminary and subject to adjustments and modifications.
All aspects of the Presentation must be considered in the context of more fulsome and independently-obtained information that may be required for any decision regarding the Presentation’s subject matter.
Any recipient of the Presentation should determine, in consultation with its own legal, tax, regulatory, accounting and other pertinent advisors, all economic risks and merits, as well as legal, tax, regulator and
accounting characteristics and consequences, of any transaction as it pertains to them. Past performance presented in the presentation should not be taken as an indication or guarantee of future
performance, and no representation or warranty, express or implied, is provided in relation to any aspect of the Presentation. The Company accepts no responsibility for, and expressly disclaims all liabilities
relating to, any loss, whether direct or indirect, or any other kind of damage resulting from reliance upon or use of information contained in the Presentation.
Certain statements included or incorporated by reference within this presentation may constitute “forward-looking statements” in respect of the Company’s operations, performance, prospects and/or financial
condition. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions and actual results or events may differ materially from those expressed or implied by those
statements. Hence, there is a considerable risk that investors face the risk to lose all their money they invest in the company. Accordingly, no assurance can be given that any particular expectation will be met
and reliance should not be placed on any forward-looking statement. Nothing in this presentation should be construed as a profit forecast. All forward-looking statements relating to the Presentation are
qualified in their entirety by this cautionary statement.
The Presentation is to be construed as of the date of its creation and is subject to change at any time without notice. No party makes any representation, whether express or implied, with respect to the
completeness or accuracy of the Presentation, or for the fitness of the information in the Presentation for any purpose. No party shall have any obligation to update any information contained in the
Presentation at any time. Nothing in this Presentation shall be construed by any party as a binding or legally enforceable commitment, contract or offer to contract with respect to its subject matter. The
Presentation neither imposes any obligation, nor grants any rights with respect to, any service or transaction referenced in the Presentation, nor does it impose on any party a duty or obligation to conclude any
such agreement or commitment. Any person receiving the Presentation is deemed to have accepted these legal notices and that such notices shall apply even if the Presentation in any way is shown to be
erroneous, incomplete or based upon incorrect or incomplete facts, interpretations or assessments or assumptions, irrespective of any responsibility of the Company. To the extent permitted by law, all legal
considerations arising from this Presentation shall be governed by the Law of Germany.
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