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Consumer Security Software & Online Distribution Platform
22
Ido Erlichman
CEO Crossrider
3
Core Software Products
Digital marketing platform: driving users to Crossrider ’s products
▪ Over 3.5 million active users▪ Millions of PCs repaired
▪ 1.5 million active users▪ 167,000 active paying monthly
subscribers
▪ Downloaded over 50 million times since 2006
▪ Over 17 million drivers available on database
▪ Reimage for Mac ▪ Launched September 2017
▪ Patented solution to fix PC’s remotely;
▪ removes malware and repairs computer’s software
▪ Solution to fix Mac’s remotely removes malware and repairs computer’s software
▪ A leading cyber security SaaS provider with a focus on the provision of VPN solutions
▪ Scans computers for outdated driversacross all Windows operating systemson desktop computers, tablets andmobile devices
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Robert Knapp
Founder and Managing Director
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The Consumer Cybersecurity Market and CyberGhost
The Evolution of Hacking
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Malicious code, trojans, advanced worms
Identity theft, Phishing
DNS attacks,rise of botnets, Sql
attacks, Anti Spam sites
Social Engineering, DoS, BotNets, Malicious Email, Ransomware attack, PoS
compromised
Banking Malware, Keylogger, Identity theft,
Bitcoin wallet stealer, phone hijacking,
ransomware, Android hack
1997 2004 2007 2010 2013
The Current Cybersecurity LandscapeWith IoT on the rise, information security becomes critical…
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▪ 90 Million attacks in 2016
▪ Average cost of a data breach = $3.8 million
▪ 600,000 Facebook accounts are compromised every day
▪ Projected cyber-attack damage 2019 = $2.1 trillion
In 2004, the global cybersecurity market was worth $3.5 billion - and in 2017 we expect it to be worth
more than $120 billion. The cybersecurity market grew by roughly 35x over 13 years.
The Consumer Cyber Security Market is Growing
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9
Why Privacy is Important,and Having “Nothing to Hide" is Irrelevant
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▪ People do care
▪ Loss of privacy leads to loss of freedom
▪ Aggregation leads to exposure
▪ Chilling consequences
“People consider VPNs to be a niche tool, but they are surprisingly widespread, as many as one in four people use them.“
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Jason Mander, head of trends at market-research firm GlobalWebIndex
The Market
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We address a market of 1.5 billion+ internet users.
▪ 600 mil. users are affected by censorship
▪ 800 mil. users have an antivirus subscription
▪ 200 mil. are expatriates worldwide
Out of 3.17 billion internet users:
13December 2015 June 2016 December 2016 June 2017
167k
Growth Active Paying Monthly Subscribers
Growth Active Users
14December 2015 June 2016 December 2016 June 2017
1.5M
Growth in Mobile Orders
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2016 2017
85k
15k
Market Position
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Germany
Market Share
23% 18% 12% 8% 8% 7%No 1 No 1 Top 3 Top 5 Top 6 Top 6
France UK Canada Australia USA
*brand searches
Significant B2C Cyber Security Market Opportunity
Source: Company estimate, McKinsey, Gartner, Javelin identity Fraud study, Javelin strategy and research 2017; 2017 User Risk Report, Wombat Security technologies
$10 billion 689 million $16 billion41%
Key Market Drivers
Growing collections of personal data by commercial entities
Increasing network and Wifi connectivity
Growing cyber crime targeting consumer data
Increased regulatory uncertainty around privacy
Emergence of IoT
Market Stats
Working Americans installed a VPN on
their laptop
Personal digital safety addressable market
in 2018
People were victims of cybercrime in 2016
Lost to identity fraud in 2016
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Privacy as a Service (PaaS)
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Customer Acquisition Cost
Potential Buyer
Premium User (Buyer)
Free/Promo offer
Type-In SEM SEO Affiliate Social
Onboarding
User
Disengaged user Engaged user
Drop out
Former users
Disengaged Dissatisfied
Cancel Billing Info Exp.
Former customers
Server & Device Limit
Upselling
Reactivate Reactivate ResolutionFreemium churn
Reactivation rate
Free userdisangagement
User Lifetime Value
Support data
Customer Lifetime Value
Paid churn
Tiering
Upselling rate
Why People Use a VPN
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WiFi protection
Anonymisation
Bypass censorship in countries with internet restrictions
Access restricted content in closed networks and various locations
2020
Shalev Katav
COO CyberGhost
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Synergy Effects and User Acquisition
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Post-Acquisition Integration
▪ Sophisticated BI systemAllowing us to have full transparency across the businessand react in real time
▪ Technological funnel solutionIncreasing conversion, aov and user acquisition efficiencybased on Crossrider ’s assets
▪ Optimise processing across the groupIncrease conversion, lower costs, standardise processes
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User Acquisition Establishment
We have only just started and the results are highly positive injust 4 months we now generate over 30% of the new monthlyrevenue via media buying.
Most review websites place us in their top 5 and featureCyberGhost as one of the best VPN products globally.
Months: June July August
Media Buying/Total New Revenue
6% 16% 31%
Revenues
Orders
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Demand Generation
Brand Content Marketing Display and Google
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Media Buying Flow
Year 1 Year 2 Year 3
Media Cost Revenue
Recurring Revenue
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Media Buying Flow
Year 1 Year 2 Year 3
Media Cost Total Revenue
Growth Opportunities
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Cross Promotion
Growth in Mobile
User Acquisition
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Timo Beyel
CTO CyberGhost, Dipl. Ing (FH)
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CyberGhostInfrastructure & Technology
CyberGhost in 2004
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Übach-Palenberg, Germany
Übach-Palenberg, Germany
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How an Internet Connection Works
Regular Internet Connection
Your Computer WebsiteISPWiFi Router
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Title
Your Computer WebsiteISPWiFi Router
We need encryption!
It’s your digital address!
Your ISP: Deutsche Telekom AGYour IP: 79.241.222.158 Your Location: Germany
▪ Identifies my computer uniquely across the Internet.
▪ Can be associated with a country, city or even street.
What is an IP?
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Why Does That Affect My Privacy?
Both communication partners can see each other‘s IP
If you access a website, the website owner can see your IP address and can use a geolocation service to lookup your location
A website owner can use your IP address to fetch even more information about you
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Why does that affect my privacy?
Both communication partners can see each other‘s IP
If you access a website, the website owner can see your IP address and can use a geolocation service to lookup your location
A website owner can use your IP address to fetch even more information about you
They know much more about you!
Cookies
Websites can store information in your browser by using a „Cookie“
That information can be shared across websites
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Going Incognito…
Incognito mode alone does not help!
▪ It only prevents cookies which are usually used to identify your computer
It does not change the visible IP all over the Internet!
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Advertising Networks
They want to know EVERYTHING about you!
These events and people and websites are fictional and any resemblance to a website, person living or dead is purely coincidental.
Disclaimer
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Jon’s Athlete’s Foot
http://www.online-doctor.com
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Jon’s Athlete’s Foot
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Jon - IP: 1.2.3.4
Jon’s Athlete’s Foot
https://www.online-doctor.com
https://bbc.co.uk
Advertising Network ServerJon has IP 1.2.3.4
Jon suffer from athlete‘s foot
Visitor with IP 1.2.3.4 detectedTag: Athlete‘s Foot
Visitor with IP 1.2.3.4 detected
Sends advertising for Canesten
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What is a VPN
VPN = Virtual Private Network
▪ No direct physical connection
▪ Uses a public network (Internet) to transport (tunnel) the private network data
Virtual
▪ Only authorized users can join the network
▪ Data can’t be read or modified by unauthorized users
Private
Encryption and Authentication
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WebsiteISPYour Computer
IP:1.2.3.4
VPN = Virtual Private Network
CyberGhost Server
IP: 8.9.0.1
with CyberGhost
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Problem Solved
Your connection is encrypted
Your IP is masked
Your location is hidden
Your Security AND Privacy is protected
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Infrastructure
More than 1000 servers in 45 countries in the world
20.000.000.000.000.000 bytes/month
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API & Load Balancing
CyberGhost API
Provides user authentication and subscription management
▪ CPU Load
▪ Response time
▪ Bandwidth
▪ Number of users on the VPN server
▪ Destination to user‘s country
▪ Performance indicators measured by our server monitoring system like:
Fetches the optimal VPN server for different use cases based on:
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2.000.0000.000 Requests/Month
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Our Apps
Windows
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Windows
Windows
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MacOS / iOS / Android
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Our vision
Full-stack Security Solution
Parental Control
VPN
Antivirus
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Full-stack Security Solution
Parental Control
VPN
Antivirus
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Full-stack Security Solution
IoT Protection
Parental Control
VPN
Antivirus
VPN
IoT Protection
Antivirus
Parental Control
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CyberGhost Security Suite
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Conclusion
Q&A
66
Yossi Peretz
Reimage MD
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▪ Reimage preliminary scan will detect all errors on the PC’s operating system as well malware
▪ The repair processes removes and replaces damaged files found during the scan
▪ During repair, Reimage not only removes damage, but also reverse damage done by replacing
corrupted and deleted files with fresh files/components
How We Do It
▪ Reimage is a top provider of remote desktop malware identification, removal and repair▪ We have patented technology for computer repair for both PC and MAC
Who We Are
▪ Our patented technology combined with our 24/7 support center provides millions of our customers’
PCs and Macs recovery to peak performance without the need for an on-site technician.
▪ 150 million spare parts covering hundreds of images
▪ Resolves 98% of our customers' problems on their desktop
What We Do
About ReimageReimage is a patented technology for software repair for both Mac and PC
Market Backdrop
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▪ Wide user base and wide age distribution, age 20-60
▪ Customers across genders
▪ Mass market product
▪ Reimage has created a user base of millions ofcustomers globally providing an opportunity to growthe company’s range of products on offer
United States, 25%
Germany, 17%
France, 7%Argentina,
6%
United
Kingdom,
5%
Italy, 5%
Spain
, 4%
Japan, 3%
Australia, 3%
Netherlands, 3%
Canada, 2%
Brazil, 2%
Mexico, 2%
Austria, 2%
Other, 16%
Revenue by GEO June 2017
User Acquisition in Scale
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Native Banners Google Text Banners
Wider Crossrider Product
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PC Repair Mac Repair Driver Agent CyberGhost
▪ 2-3 million $ in user acquisitionspent a month
▪ Move from license to subscription model
▪ Launced in September 2017 ▪ Since acquisition in 2016 doubledrevenue & profit
In-house Technology Developed in the Funnel
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Developed a payment processers algorithms to maximise conversion
Malware detection capabilities – identifying 10,000 new malwares a day; millions of viruses in our detection data base
Theory of constraint of funnel – continually improving and maximising funnel’s efficiency
Leveraging Crossrider’s Expertise
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▪ Through Crossrider’s platform Reimage has grown to become themarket leader in its category
▪ Originally a B2B focused product, growing into the B2C space
▪ Under Crossrider’s ownership, significant progress has been made
▪ Revenue growth of >100%
▪ Margin growth of >70%
▪ 2 million installs per month
4.5
9.1
11.2
13.4*
2014 2015 2016 2017
App Distribution Segment Results
Segment Results (in Millions $)
*based on doubling half year results
Achieved a Market Leading Position
73
Global Rank
444
1,056
2,273
16,847
17,834
25,824
76,229
394,642
Company
CCleaner®
Reimage’s website ranked 444 globally in Alexa
Growth Drivers
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Improve average revenue per user (ARPU) & conversion rate (CR)Continued focus on user conversion and retention
Launch of Mac productSignificant expansion of addressable market, with ability to leverage expertise in the PC repair arena
Move from licenced to subscription modelIn the process of transitioning users to an automatic renewal model which will provide recurring revenue stream
Cross-promotionEarly stage traction with product cross-selling initiatives
Summary
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Scope to replicate the success of Reimage across Crossrider ’s software portfolio
Opportunity to cross-sell and up-sell to Reimage’s users across Crossrider’s product suite
Ability to grow to scale additional products through our platform
There is significant opportunity for Reimage to continue along its growth trajectory
7676
Ido Erlichman
CEO Crossrider
Key Growth Drivers
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M&A
ORGANIC GROWTH
▪ Execute and develop greater cross-selling opportunities across the group’s existing product portfolio
▪ Grow user base & and revenue per user
▪ Enhance inter-company synergies
▪ Develop holistic privacy solution in-house
▪ Transition towards recurring revenue model
▪ Clear focus on the high growth personal cyber security market and complementary verticals
▪ Products to expand software portfolio
▪ Technology to complement distribution funnel
▪ Acquire large and diverse user base
Summary
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Growth of 131% in underlying adjusted EBITDA*
Realising technology and knowledge based synergies across the company’s platforms and products
Ongoing focus on organic growth and execution of larger acquisitions across the cyber security sector
Visibility on future revenues and growing quality of earnings
*Excluding the Web Apps and License segment
Q&A
