2019 earnings

Friday March 27, 2020

20

19

yea

r-en

d d

ata employees

170+

turnover

+€16m

clients served

1,000+

countries

70+

WALLIX GROUP todayA software company providing

cyber-security solutions, WALLIX Group is the European specialist in privileged access management

(PAM).

WALLIX solutions help companies protect their sensitive digital

assets, focusing on three major areas: access security, identity security and data protection.

WALLIX supports the digital transformation of its customers and helps guarantee NIS/GDPR

compliance.

gross cash

+€29m

resellers & integrators

160+

+ 29% IN TURNOVER, STRONG MOMENTUM IN FRANCE

+ 45 NEW EMPLOYEES

+ 1,000 CLIENTS

2019in a nutshell: encouraging

1st yearof the

strategic plan+ PRODUCT OFFERS

+ PARTNERS, INCLUDING

INTERNATIONAL DISTRIBUTORS

2019 SUCCESSES

GROWTH DRIVERS

1,000-client milestone reached…

220 300

420

570

770

1 045

200

300

400

500

600

700

800

900

1 000

1 100

déc.-14 déc.-15 déc.-16 déc.-17 déc.-18 déc.-19

Nombre de clients actifs

France

Reste du monde

…including nearly 50% overseas clients

2019 Results

2015: FUNDRAISER // IPO

2015-2018 CAGR (100% ORGANIC): +34%

2018: FUNDRAISER // ANNOUNCEMENT OF STRATEGIC

PLAN

2019 (100% ORGANIC): +29%

Further ramp-up in growth

3 972

5 295

7 364

11 545

12 640

16 335

2 000

4 000

6 000

8 000

10 000

12 000

14 000

16 000

2014 2015 2016 2017 2018 2019

Chiffre d'affaires

+33%

+39%

+57%

+9%

+29%

Un

aud

ited

dat

a, €

00

0

Most regulated market (GDPR, NIS, OVI, etc.)

Sales generated by multi-year key accounts

Most extensive distribution network

France: €11.0m // +36% vs -6% in 2018

Sustained sales performance in France

Challenging comparative basis

Expansion of the distribution network to drive indirect sales

International: €5.3m // +18% vs +53% in 2018

-

2 000

4 000

6 000

8 000

10 000

12 000

14 000

16 000

18 000

déc.-14 déc.-15 déc.-16 déc.-17 déc.-18 déc.-19

France International

Un

aud

ited

dat

a, €

00

0

Growth in recurring business

Definition of recurring business

Revenues from maintenance + SaaS subscriptions + multi-year managed services

4 580

6 415

2018 2019

Turnover (€m)

+40%

Turnover from recurring business (%)

36%

39%

+3pts

2018 2019

2018 2019 Change

Turnover 12,640 16,335 +29%

Other operating income 4,047 4,196 +4%

Total operating income 16,887 20,531 +22%

Total operating expenses (19,969) (27,369) +37%

Other operating expenses (5,425) (7,158) +32%

o/w Payroll (11,678) (16,304) +40%

Depreciation, amortization and provisions

(2,148) (3,117) +45%

Operating profit/(loss) (3,281) (6,837) -108%

Net financial income/(expense) (5) (5) -

Non-recurring income/(expense) - (2) -

Tax expense (3) - -

Net profit/(loss) (3,288) (6,845) -108%

9

Profit & Loss StatementConsolidated data (€000)

French GAAP

Strong growth in turnover

Increase in operating expenses in line with the investment plan:

- Increase in staff costs to support international development and

business ramp-up

- Increase in amortisation due to previous years’ R&D investments to

build a state-of-the-art offering

No non-recurring expenses or financial charges

Operating cash outflow of €3.1 million, higher than operating loss

thanks to the reduction in working capital

Good control of investments despite a sustained R&D effort on new

offers

Strong momentum in M&A investment with the upfront payment for two

external growth transactions

Share buybacks (€450,000) to partially cover earn-outs and options

exercised by managers

Bank loan taken out to diversify sources of financing and take advantage

of loan terms

10

Consolidated data (€000)

French GAAP

Cash at Dec. 31, 2018

Cash at Dec. 31, 2019

36,400

Gross cash flow

(3,982)

Ch. in WC

914

CAPEX

(3,372)

BORROWINGS

2,167

Operating cash flow

(3,068)

29,316

Cash flow statement

M&A

(2,361)

SHARE BUYBACK

(450)

Free cash flow

(6,440)

Balance sheetThursday

12/31/2018Thursday

12/31/2019

Non-current assets 8,043 13,521

Goodwill - 4,189

Other intangible assets 6,850 7,942

Current assets 45,899 41,870

o/w Trade receivables 6,205 7,591

o/w Cash and cash equivalents 36,400 29,317

Total assets 53,942 55,391

Shareholders’ equity 39,344 32,155

Provisions 457 911

Liabilities 14,141 22,325

o/w Borrowings 1,564 3,903

o/w Trade payables 910 1,520

Liabilities on non-current assets and related accounts

- 1,887

o/w Prepayments* 8,921 11,149

Total equity & liabilities 53,942 55,391

11

* 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 (€000)French GAAP

Increase in non-current assets including goodwill

resulting from the Simarks and Trustelem integration

Liabilities on non-current assets: earn-out on

acquisitions

(€1.7 million increase in off-balance sheet

commitments)

High level of shareholders’ equity

Solid cash position maintained

Gross borrowings: €3.9m

Net cash: €25.4m

Development of the offering

Acquisition of two strategic technologies…

TRUSTELEM

✓ Identity as a Service (IDaaS) solution to manage and control access:

✓A native SaaS solution

Strategic step towards the IAM and Cloud markets

SIMARKS

✓PEDM* solution to raise user permissions on their endpoint, on demand

✓Protection against malware and ransomware threats

Extension of the PAM offer to workstation security

* Privileged Elevation and Delegation Management

… to round out a now exhaustive offering

WALLIXCutting-edge offer for:

Privileged usersand

essential infrastructures

ASSETS

Extension to application areas and industrial tools

USERS

Extension to all users

GESTION DES SESSIONS ET DES MOTS DE PASSE

GESTION DE L’ÉLÉVATION ET DE LA DÉLÉGATION

DE PRIVILÈGES

SSO + MFA

FÉDÉRATION D’IDENTITÉS

IDAAS

PRINCIPE DU MOINDRE PRIVILÈGE

PROTECTION CONTRE LES RANSOMWARE

SOLUTIONS DE SÉCURITÉ INTÉGRÉES

PARTENARIATS TECHNOLOGIQUES

Expanding a benchmark PAM solutioninto a portfolio of cyber-security solutions

WALLIX BastionPassword management, access controls and traceability of privileged accounts

Secure, remote access

Protection against internal threats

Secure DevOps Audit & Compliance

Secure IoT & OT systems

WALLIX Trustelem

Compliance

User identity management platform (IdaaS) to centralize, simplify and control user access to applications.

Secure access to company resources

and applications

Optimizethe user experience

Reduce the security/IT budget

WALLIX BestSafeManage access from the server to the workstation to avoid malware, cryptoviruses

and ransomware.

Raising privileges Stopping attacks by removing unnecessary

privileges

Removing local administrators

Protecting against malware

WALL4iOTCyber-security solutions for industrial equipment and connected objects (IoT)

Manage security of industrial

equipment

Integrate multi-protocol operational technologies

(OT) with standard equipment

Strengthen securityof connected objects

in Industrial IoT

Meet the new challenges facing cyber-security in

IoT

QUALITY OF LIFE - GREEN TRANSFORMATION - OPERATIONAL EFFICIENCY

HUMANCENTRIC

LIGHTING

EV CHARGER

SMARTGRID

EMERGENCY RESPONSE

ROOF TOPSOLAR

MONITORING

AIR QUALITY

SMARTPARKING

PUBLIC ADVERTISEMENT

SMARTSURVEILLANCE

SERVICEFRONT-END

IOT

HYPER CONNECTIVITY

BIG DATAOPEN DATA

REAL-TIME MANAGEMENT

CROSS-FUNCTIONALINTEGRATION

Wall4IoT: Smart Cities

Building a Smart city you can trust

Partnership with Kardham in the Smart building sector

Going global

A growing international presence

UNITED STATES: 6 employees (+3)

CANADA: 4 employees (+2)

GERMANY: 15 employees (+9)

FRANCE: 139 employees (+24)

SPAIN: 4 employees (+4)

UK & IRELAND: 3 employees (+2)

BENELUX: 1 employee (+1)

An extensive networkto bolster indirect sales…

Best ELITEpartner

Best performance in 2019

Best IoT partner

New API

25 partners1 VAD

24 VAR 5 ELITE

6 PREMIERincluding

21 partners1 VAD

20 VAR 19 INITIAL1 PREMIERincluding

A clear strategy to address

different market segments

Sales and marketing operations…

Account Management

Strategic account management

Global

Direct Touch Approach

Targeted accounts

Mature or strategic regions

Channel

Strategic partnership & major alliances

Verticals: Industry, Cloud, Healthcare

Channel

VAD/VAR

Online

Small and Medium-sized Enterprises

/target zones

Marketing& Communication

Gen Lead, Events, Digital market, Branding

Global

Outlook

Framework agreements in France: a consistently powerful growth driver

€3.4

m

€3.7

m

Invoicing 2018 Invoicing 2019 2020 potential

~€8m

Increase in sales under framework agreements set up in parallel with the NIS Directive and GDPR

Renewed pipeline with new prestigious contracts:

Gaining ground...

Opened in 2019

Next to come

Already covered

534

64

951

132

306

Europe:

MEA

North America

LatAm

APAC

…on a large and growing market(PAM market, source: Gartner)

>$1.987bnin 2020

+18%

▪ DACH/Eastern Europe: 156

▪ United Kingdom:$126m

▪ Scandinavia: $59m

▪ France: $57m

▪ Benelux: $43m

▪ Italy: $30m

▪ Switzerland: $24m

▪ Spain: $21m

▪ Other: $18m

WALLIX is helping companies avoid a digital pandemic amid Covid-19…

…and ensure employee safety

Free WALLIX Bastion remote access licenses

Secureremote access (telework) to

"critical” corporate systems for privileged users

Security and strong authentication

for remote employees’ accessing corporate applications

Totalworkstation security, including

personal workstations remotely accessing “authorized

applications”

Outlook

Step up growth to become

a European leader in cyber-

security

Achieve global market coverage

(80%)

Successfully launch

our new product offerings

Secure one or more strategic

acquisitions

31

Market data

Breakdown of capitalat 3/20/2019

CORPORATE OFFICERS7.8%

o/w T.D.H.7.5%

FOUNDERS

17.4%

72.7%FLOAT

EMPLOYEES & TREASURY

SHARES 2.1%

SHAREHOLDER FACTSHEET

INNOVATIVE COMPANY

Market dataMarket data

ISIN code: FR0010131409

Ticker: ALLIX

Share price: €10.8

(3/19/2020 closing price)

Number of shares: 5.814.247

Market capitalization: €63 million

Tracking analysts: Midcap Partners & ODDO BHF

250 bis, rue du Faubourg Saint-Honoré

75008 Paris, France

+33 1 53 42 12 81

info@wallix.com

THANK YOU!