CYBER-SECURITY
AND GOVERNANCE
SOLUTIONS FOR
INFORMATION SYSTEMS
ACCESS
INVESTOR PRESENTATION
October 2017
2
TWO COFOUNDERS EXPERIENCED IN ORDERS
Founder of Aurora, a services company
sold in 2003 to Business & DecisionFour years with Hachette Filipacchi Mediasas Management 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 Administrative and Financial Officer
Jean-Noël de Galzain Co-Founder and Chairman of the Management Board
September 2017
Around 5 million emails exposed
3
CYBER ATTACKS CAN DESTROY A COMPANY:
FACT OR FANTASY?
THE VIRUS IS SPREADING
September 2017
Personal details of 143 Americans are stolen
June 2017
A costly cyber attack
August 2017
Game of Thrones season 7 is leaked
September 2017
Cyber attack triggers a profit warning
2019
US$ 2.1 trillion
Estimated annual cost
Source: Juniper research
TRADITIONAL SOLUTIONS ARE NO LONGER ENOUGH
4
CYBER ATTACKS: A TREND THAT WILL CONTINUE
TO ACCELERATE
+ data to be protected
DIGITIZATION
+ users
(internal & external)
OUTSOURCING
+ equipment to be protected
IoT
+ controls
REGULATIONS
Equipment protection (Antivirus)
5
IT SECURITY MARKET OF €70 BILLION TODAY,
€150 BILLION IN 2020*
Network Protection (Firewall)
Identity Access Management (IAM)
Privileged Account Management (PAM)
PAM: the next move
Ownership rate
Technological waves
*Source: Cyber security market survey, Gartner, 2016
Age of the PC
Age of the internet
Age of identity and mobility
0
6
WALLIX, SPECIALIST IN
PRIVILEGED ACCOUNT MANAGEMENT
SOFTWARE SUITE FOR ACCESS CONTROL AND
TRACEABILITY OF PRIVILEGED ACCOUNTS
MANAGEMENT OF IDENTITIES & CLEARANCE
REAL-TIME MONITORING & ALERTS
TRACEABILITY & EX-POST AUDITS
WALLIX makes PAM simple
7
SOLID FOUNDATIONS FOR LASTING GROWTH
Creator of
Bastion
technologies
for Privileged
Access
Management
(PAM) 80+employees
170+partner
references
33+countries covered
5+patents filed
Supporting information system
security governance and
protecting strategic content and
assets
Cyber
security
software
developer
490+active clients
150K+access eventsprotected
every day
Listed on the
Alternext
market
Ticker: ALLIX
01A COMPLEX MARKET
ENVIRONMENT
CYBER-SECURITY AND GOVERNANCE SOLUTIONS FOR INFORMATION SYSTEMS ACCESS
9
CYBER SECURITY: A CHALLENGE FOR ALL STAKEHOLDERS
• Prevent data leakage and threats
• Follow IT best practices
• Implement cyber insurance and prevent fraud
• Avoid an image and reputation crisis in the event of a cyber attack or data breach
• Support a digitalization strategy
10
A CONDUCIVE REGULATORY FRAMEWORK
Obligation to install IT intrusion detection software
1st IMPLEMENTING
DECREE
12 “Vitally Important” sectors of activity
Application
No later than
May 2018
2014 2015 2016 2017 2018
FAILURE TO COMPLY: Fine of €150,000 for the head of the company + prison sentence
Entry into force
in H2 2016
Health*Water*Food*
Energy*Transport*
250 Operators of Vital Importance to protect in France
Entry into force
in H1 2017
FinanceIndustry
Audiovisual and informationElectronic communications
Nuclear
Govt. civil services
Govt. military services
Judicial services
Space and Research
NIS DIRECTIVE(Network &
Information Security)Energy
TransportHealth
Financial services
GRDP(General Regulation on
Data Protection)Unified legal framework in
the European Union (promulgated in April 2016)
11
MARKETING: NEW BUSINESS VERTICALS TO STRENGTHEN OUR
POSITION AS EXPERTS ON REGULATED SECTORS
PRIORITY SECTORS
Finance /
InsuranceIndustryHealth
CONDUCIVE
REGULATORY
FRAMEWORK
NIS / OVI
GRDP
PCI-DSS
BASEL I, II, III
Sarbanes-Oxley
Act-SOX
SOLVENCY 2
ISO-27001/17799
NERC CIP
SP-800-82
ISO 27000
NIS / OVI
GRDP
NIS / OVI
PGSSI-S / HIPPA
HDS
SOLID
REFERENCES
Source : WALLIX
NIS / OIV
NIST SP 800-144
RGPD
LPM
HDS
HIPAA
PCI-DSS
ISO-27001/27018
80+ clients40+ clients50+ clients 70+ clients
1 FINTECH
IN FRANCE
+
1 BANK
IN AFRICA
Telco /Cloud
Providers
4
13
2015 2016
AN IMPACT ON BUSINESS DEVELOPMENT...
12
€ 28 406
€ 39 983
2015 2016
+41%
x3.3
Dec.
2014
Dec.
2015
220
300
Dec.
2016
420+
ACTIVE CLIENTS
x3.5
June
2017
490+
CONTRACTS ABOVE €100,000
AVERAGE SPENDING
2
7
H1 2016 H1 2017
02AN EFFECTIVE SALES STRATEGY
CYBER SECURITY AND GOVERNANCE SOLUTIONS FOR INFORMATION SYSTEMS ACCESS
14
AN EXHAUSTIVE & MATURE SOFTWARE SUITE
AUDIT – RISK COMPLIANCE
PRIVILEGED USER
EXTERNAL SERVICE
15
WHAT SETS THE WALLIX OFFER APART
UNINTRUSIVE SOLUTION – NO SOFTWARE INSTALLATION ON EQUIPMENT TO BE PROTECTED
SHORTEST PATH TO COMPLIANCE
IMPROVED SECURITY
EASY ADOPTION, INCREASED TEAM PRODUCTIVITY
ENHANCED COST MANAGEMENT, SIMPLIFIED DEPLOYMENT
CSPN-CERTIFIED
16KuppingerCole Report, June 2017
A POSITIONING OF EXCELLENCE IN THE MARKET RECOGNIZED
BY THE EXPERTS OF THE SECTOR (KUPPINGERCOLE)
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
17
CHANNEL: DEPLOYMENT OF A NEW PROGRAMME OF
STRATEGIC PARTNERSHIPS
Objective: Create a strong
sales dynamic
Challenge:
Greater sales and technical
autonomy for Channel
partners
Objective: Bring added
value to products
Challenge:
Complete functional
coverage of WAB Suite with
software building blocks or
systems
Objective: Offer joint
interoperable solutions
Challenge:
Joint deployment of
complementary solutions for
WAB Suite
WAP-APP WAP-TECH WAP-CHANNEL
170+ PARTNERS IN FRANCE AND AROUND THE WORLD
18
2017 REINFORCEMENT OF TOP/MIDDLE MANAGEMENT
AND TEAMS
71 staff
31/12/2016
80 staff
30/06/2017
DIRECTOR OF OPERATIONS
DIDIER LESTEVEN
QUALITY , TESTS AND VALIDATION MANAGER
FREDERIC PHILIPPE
CUSTOMER SUCCESS MANAGER
GREGORY ROUSSEAU
Strengthen visibility and
market positions in Europe
19
FAVORABLE PROSPECTS
CYBER SECURITY AND GOVERNANCE SOLUTIONS FOR INFORMATION SYSTEMS ACCESS
03
20
TARGET MARKET GROWING BY 20% EACH YEAR
$ millions
$-
$200
$400
$600
$800
$1 000
$1 200
2015 2016 2017 2018 2019 2020
Large entreprises Government sector SMEsMajor
corporates
Government
institutions and
local
authorities
Medium-sized
companies
Global Privileged Account Management (PAM) market*
* Source: Technavio.com "Global PAM Market", 2016/2020
21
DEMONSTRATED CAPABILITY TO OUTPERFORM THE MARKET
1 889 €
2 922 €
4 380 €
S1 2015 S1 2016 S1 2017
+50%
2,0412,662
3,972
LICENSESMAINTENANCE
5,295
+39%
MANAGEMENT
SERVICES
7,364
1,0861 698
2 428 3 036
4 879
435
593
1 078
1 547
2 118
520
371
467
716
367
2012 2013 2014 2015 2016
French accounting standards
Turnover (€ thousands)
22
WAB SUITE, A POWERFUL COMMERCIAL DRIVER
TO ACCELERATE OUR DEVELOPMENT
EXTENSION OF THE OFFER From traceability to PAM
GROWTH OF TARGET MARKET
Expansion from SMEs, to major international clients
UPGRADING OF PROJECTS Single site system,to global deployment
23
2017 VERY FAVORABLE PROSPECTS
Complete, certified and
all-in-one platform
Reinforced team
Strategic distribution
partnerships in the US and UK
A conducive regulatory
framework
23
ASSETS FOR H2 2017
+ 50% growth in consolidated sales
+ 58% growth in license sales
7 new contracts over 100 k € signed over
the first half
PTZ Innovation of 850 K € granted by
Bpifrance
+ € 1 million of gross cash (€ 6,936
thousand versus € 5,938 thousand at
31/12/2016)
FINANCIAL REPORT S1 2017
sound and capable of supporting expansionFINANCIAL STRUCTURE
on the rise
picking up pace
experiencing rapid growth
24
WALLIX IN CONCLUSION
recognized as the benchmark solution
TARGET MARKET
CLOUD BASTION
BUSINESS MOMENTUM
MARKET LIQUIDITY
1
2
4
3
5
25
04A GROWING MARKET AWARENESS
CYBER SECURITY AND GOVERNANCE SOLUTIONS FOR INFORMATION SYSTEMS ACCESS
26
MAJOR INVESTOR RELATIONS INITIATIVES
ODDO FORUM JOURNÉE VALEURS MOYENNES SMALLCAP EVENT
ACTIONARIAMIDCAP PARTNERS CONFERENCE
Since june 2015 Since june 2017
TRACKING ANALYST PRIZEWINNERS AND INDEX
ENTERNEXT PEA-PME 150
27
A CLEAR IMPACT ON SHARE PRICE
SHARE PRICE (1 YEAR)
DAILY TRADING VOLUMES €20K
€124K
2016 2017
Number of shares Open High Low Close
28
SHAREHOLDERS AND MARKET DATA
Market data
INNOVATIVECOMPANY
ISIN code: FR0010131409
Ticker: ALLIX
Share price: €18.01 (Open – 02/10/2017)
Number of shares: 4 007 990
Market capitalization: €73 million
(at 02/10/2017)
Tracking analyst: Midcap Partners &
ODDO BHF
Next publication
Breakdown of capitalAt 31 August 2017
FOUNDERS
EMPLOYEE
S &
TREASURY
SHARES
DIRECTOR
S
FLOAT
2017 half-yearly results 26 October 2017
27%
21,2%
51,3%0,5%
29
05NOTES
CYBER SECURITY AND GOVERNANCE SOLUTIONS FOR INFORMATION SYSTEMS ACCESS
Dec. 31, 2015 Dec. 31, 2016
Turnover 5,295 7,364
Other operating income
(capitalized production, subsidies, etc.)2,356 2,878
Total operating costs (8,725) - (12,007)
o/w other operating costs (2,418) (3,810)
o/w payroll (4,790) (6,515)
o/w depreciation, amortization and provisions
(1,143) (1,365)
Operating profit/(loss) (1,074) (1,765)
Extraordinary income and expenses 102 - (53)
Current income before tax (1,114) (1,683)
Net profit/(loss) (1,113) (1,683)
30
SIMPLIFIED INCOME STATEMENT
French accounting standardsConsolidated data (in € thousand)
Opening up of new markets:Continuation of sales and marketing efforts
Strengthening of teams to support the Group’s growth
Orders invoiced (deferred revenue): €3 million
Analysis
31
CASH FLOW STATEMENT
Consolidated data (in € thousand)
Dec. 31, 2015 Dec. 31, 2016
Gross cash flow 14 - 331
Change in working capital requirement 762 - 523
CASH FLOW LINKED TO OPERATIONS 775 - 854
Acquisitions of fixed assets (1,931) (2,630)
Disposals of fixed assets 8 392
CASH FLOW LINKED TO INVESTMENTS (1,924) (2,238)
Capital increase 8,905 30
New borrowings 479
Repayment of loans - 143 - 247
CASH FLOW LINKED TO FINANCING 8,762 262
CHANGE IN CASH FLOW 7,613 (2,830)
CASH AT YEAR END 8,767 5,938
Technological investments(including the acquisition of MLState) in order to maintain the Group’s competitive edge
New bank credit line to enhance financial flexibility
Strong cash position at end-December 2016
Analysis
French accounting standards
32
BALANCE SHEET
ASSETS Dec. 31, 2015 Dec. 31, 2016
Non-current assets 4,348 5,610
o/w intangible fixed assets 3,667 4,619
Current assets 12,674 12,159
o/w client and other receivables 2,093 4,699
o/w cash and cash equivalents 8,769 5,938
Total assets 17,022 17,769
LIABILITIES Dec. 31, 2015 Dec. 31, 2016
Equity 10,575 8,927
Provisions 161 237
Borrowings and financial debt 937 1,572
Trade and other payables 478 523
Other debt and accruals 4,871 6,620
Total liabilities 17,022 17,769
Equity stood at €8,927,000
Cash net of financial debt totaled€4,366,000
Analysis
Consolidated data (in € thousand)French accounting standards