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December 2019 Marie-Claire Dwek Chief Executive Officer Colin Leatherbarrow Technical Director (Grosvenor Technology) Imperial Capital Security Investor Conference 1

Imperial Capital Security Investor Conference€¦ · Financial Highlights 2018/ 19 2017/ 18 Variance % change £,000 £,000 £,000 Revenue 19,583 16,052 3,531 22 Operating Profit

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Page 1: Imperial Capital Security Investor Conference€¦ · Financial Highlights 2018/ 19 2017/ 18 Variance % change £,000 £,000 £,000 Revenue 19,583 16,052 3,531 22 Operating Profit

December 2019

Marie-Claire DwekChief Executive Officer

Colin Leatherbarrow Technical Director

(Grosvenor Technology)

Imperial Capital Security Investor Conference

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Page 2: Imperial Capital Security Investor Conference€¦ · Financial Highlights 2018/ 19 2017/ 18 Variance % change £,000 £,000 £,000 Revenue 19,583 16,052 3,531 22 Operating Profit

Agendaü Team Introduction

ü An Introduction to Newmark Securityo About Uso Business Overviewso Where we are today inc. financial highlights

ü Grosvenor Technology/ GT Clockso Our history in HCM o Industry 4.0o Growth Opportunities for HCM in the USo PaaSo Access Control: An overview of our software and hardware

ü Safetello Overviewo Restructureo Future focus…

ü Summary

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Page 3: Imperial Capital Security Investor Conference€¦ · Financial Highlights 2018/ 19 2017/ 18 Variance % change £,000 £,000 £,000 Revenue 19,583 16,052 3,531 22 Operating Profit

Meet the team

Colin LeatherbarrowTechnical Director, Grosvenor Technology

ü Marie-Claire Dwek was appointed as CEO of Newmark Security PLC in 2013. Prior to this, she spent more than a decade in real estate investment & management developing a successful portfolio of diversified investments. Earlier in her career Marie-Claire gained deep experience of the security technology sector as she served as Marketing Director for an electronic securityprovider.

ü Marie-Claire is responsible for setting and implementing corporate strategy and ensuring subsidiaries’ goals are aligned with those of the broader global group. She adopts a philosophyof leading from the front and active role with customers and broader industry alike.

Marie-Claire DwekChief Executive Officer

Team Introduction

ü Colin Leatherbarrow joined Grosvenor Technology in October 2017. With 25+ years' experience, Colin has previously worked as a Product Director and General Manager in leading blue-chip environments.

ü Colin has a strong blend of technical and commercial skills built on a diverse career. His management experience, spanning across general, sales, operations, product and technical directorships is complemented withdeep systems architecture and software development skills.

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Page 4: Imperial Capital Security Investor Conference€¦ · Financial Highlights 2018/ 19 2017/ 18 Variance % change £,000 £,000 £,000 Revenue 19,583 16,052 3,531 22 Operating Profit

Newmark Security plc is a leading provider of human capital management, electronic and physical security systems, which focus on personal security, the safety of assets and reduced operational cost.

Operating through two established and wholly owned divisions:

About Us

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Page 5: Imperial Capital Security Investor Conference€¦ · Financial Highlights 2018/ 19 2017/ 18 Variance % change £,000 £,000 £,000 Revenue 19,583 16,052 3,531 22 Operating Profit

ü Traditionally operated in two distinct lines of business.ü Develops hardware and software-based products and services for a broad range of end user sectors.ü JANUS, Siteguard and SATEON products have become security industry bywords for access control.ü Significant recent successes in Human Capital Management markets with combined hardware and PaaS offering.ü Located in Stansted & Poole (UK) and Fort Lauderdale (US).

Access Control and Human Capital Management

Physical Security and Cash Handling Solutions

ü Designs, develops, installs and maintainsa diverse range of physical security solutions to a wide range of sectors.

ü Service division protects businesses around the clock with its field-based technicians and engineers.ü Range of services to reduce risk, cost and effort for specifiers, contractors and end users.ü Physical security - products resistant to blast, bullet, attack, forced entry as well as CCTV, cash handling.ü Located in Dartford, UK.

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Page 6: Imperial Capital Security Investor Conference€¦ · Financial Highlights 2018/ 19 2017/ 18 Variance % change £,000 £,000 £,000 Revenue 19,583 16,052 3,531 22 Operating Profit

Newmark Security in numbers

128Number of employees

5 Number of locations

30Years’ experience

Where we are today

£19,583,000Group revenue

£644,000Operating Profit before Exceptional

NWT.LNewmark Security plc

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Page 7: Imperial Capital Security Investor Conference€¦ · Financial Highlights 2018/ 19 2017/ 18 Variance % change £,000 £,000 £,000 Revenue 19,583 16,052 3,531 22 Operating Profit

Financial Highlights 2018/ 19 2017/ 18 Variance % change

£,000 £,000 £,000

Revenue 19,583 16,052 3,531 22

Operating Profit before Exceptional

644 (1,039) 1,683 162

Goodwill 2,735 2,735 - -

Other Non-Current Assets

2,509 2,377 132 5.6

Net Current Assets 2,119 1,969 150 7.6

Non-Current Liabilities (249) (157) (92) (58.6)

Net Assets 7,114 6,924 190 2.7

Average Number of Employees

128 142 14 9.9

Market Capitalization 3.98m 4.45m 0.47 10.6

£’000’s Group Electronic Division Asset Protection Division

HCM Access Control

Service Product Sales

Revenue Split 18/19

19,583 6,908 4,071 3,794 4,810

Revenue Split 17/18

16,052 4,118 3,842 3,218 4,874

Revenue Growth 3,531 2,790 229 576 64

% Change 22 67.8 6 17.9 1.3

Financial Highlights

Current market cap @ £5.86m (06/12/19) +£1.88m +47% from 2018/19

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Page 8: Imperial Capital Security Investor Conference€¦ · Financial Highlights 2018/ 19 2017/ 18 Variance % change £,000 £,000 £,000 Revenue 19,583 16,052 3,531 22 Operating Profit

Commercial

Defence

EducationBankingRetail Infrastructure

Institutional

Supporting the world’s most trusted brands

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Page 9: Imperial Capital Security Investor Conference€¦ · Financial Highlights 2018/ 19 2017/ 18 Variance % change £,000 £,000 £,000 Revenue 19,583 16,052 3,531 22 Operating Profit

Trading as GT Clocks in North America and Grosvenor Technology elsewhere, we serve the Human Capital Management (HCM) and Access Control (AC) markets globally, offering a tailored approach that provides a software and hardware solution which exactly matches the most complex requirements.

Grosvenor Technology / GT Clocks

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Page 10: Imperial Capital Security Investor Conference€¦ · Financial Highlights 2018/ 19 2017/ 18 Variance % change £,000 £,000 £,000 Revenue 19,583 16,052 3,531 22 Operating Profit

Custom Micro begins shipping first punch clocks

1971

CUSTOM MICRO

Custom Micro begins trading with first US WFM partner

1993 2008

Grosvenor acquires Custom

Micro

2004

Launch of IT51

Linux 10” Terminal

2011

Launch of GT1010” Android Terminal

2017

Launch of IT31 Terminal

Launch of RS09Terminal Launch of

RS21Terminal

GT10LLinux based GT10

Variant2019

2020

GT4Linux

upgrade of IT31

Launch of Android

Application Framework

HCM: Timeline

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Page 11: Imperial Capital Security Investor Conference€¦ · Financial Highlights 2018/ 19 2017/ 18 Variance % change £,000 £,000 £,000 Revenue 19,583 16,052 3,531 22 Operating Profit

Industry 4.0 creates great opportunity for Grosvenor Technology

GT SERVICESLAUNCHED

CLOCK DEVICESINTRODUCED

Within the Human Capital Management sector, the current challenge of compliance with Personally Identifiable Information (PII) legislation represents great opportunity for Grosvenor Technology, or GT Clocks, as it is branded in the US.

As our HCM customers and targets transition from on-premise, through cloud-first to cloud-only, we are repositioning our support and services via a Platform as a Service (PaaS) model to generate more recurring revenues.

INDUSTRIAL

EVOLUTION OVER

TIME

HCM: What next?

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Page 12: Imperial Capital Security Investor Conference€¦ · Financial Highlights 2018/ 19 2017/ 18 Variance % change £,000 £,000 £,000 Revenue 19,583 16,052 3,531 22 Operating Profit

HCM: Huge Revenue Growth in the US since 2012

$-

$1,000,000.00

$2,000,000.00

$3,000,000.00

$4,000,000.00

$5,000,000.00

$6,000,000.00

FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018

Annual Revenue

What our clients say…(to view this video please visit www.gtclocks.com)167% growth in

the last year

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Page 13: Imperial Capital Security Investor Conference€¦ · Financial Highlights 2018/ 19 2017/ 18 Variance % change £,000 £,000 £,000 Revenue 19,583 16,052 3,531 22 Operating Profit

GT Services

GT Connected Services

IdentityManagement

Technical Support 24/7, 365 (Phone and Email)

ExtendedHardware Warranty

Device Management§ Global Estate

Management

§ Remote Diagnostics and Recovery

DataManagement§ Clock to Cloud

Integration Middleware

§ People Data (PII) Template Distribution

§ People DataConsent andCompliance

“We strive for compliance…and working in partnership with the GT Services team, we think we have come up with a solution that is pretty close toperfect.

Kevin McWilliamsVP of Operations, Insperity Time& Attendance

HCM: Platform as a Service (PaaS)

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Page 14: Imperial Capital Security Investor Conference€¦ · Financial Highlights 2018/ 19 2017/ 18 Variance % change £,000 £,000 £,000 Revenue 19,583 16,052 3,531 22 Operating Profit

Our timeclocks

GT CLOCKSPEOPLE AND DATA MANAGEMENT

Patone 419cRGB: 33 35 34

CYMK: 86 70 69 95HEX/HTML: 212322

Patone 429cRGB: 162 170 173CYMK: 21 11 9 23

HEX/HTML: A2AAAD

Patone 124cRGB: 234 170 0

CYMK: 0 30 100 0HEX/HTML: EAAA00

GT CLOCKSPEOPLE AND DATA MANAGEMENT

Patone 419cRGB: 33 35 34

CYMK: 86 70 69 95HEX/HTML: 212322

Patone 429cRGB: 162 170 173CYMK: 21 11 9 23

HEX/HTML: A2AAAD

Patone 124cRGB: 234 170 0

CYMK: 0 30 100 0HEX/HTML: EAAA00

Our hardware is designed to be ‘always on’ in the harshest of

environments and is recognized as being the premium product range in

the HCM space. In addition to providing a range of Edge Devices, or

‘timeclocks’ as many of our clients still refer to them, we provide a range of software services designed to assist

our clients, who are mostly providers of complete HCM solutions.

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Page 15: Imperial Capital Security Investor Conference€¦ · Financial Highlights 2018/ 19 2017/ 18 Variance % change £,000 £,000 £,000 Revenue 19,583 16,052 3,531 22 Operating Profit

Since the launch of GT Services in May 2018, >3,700 Edge Devices have been connected to the subscription service. This has been a combination of existing customers’ legacy estate of timeclocks and new customers.

HCM: Connected Clock Estate

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Page 16: Imperial Capital Security Investor Conference€¦ · Financial Highlights 2018/ 19 2017/ 18 Variance % change £,000 £,000 £,000 Revenue 19,583 16,052 3,531 22 Operating Profit

Case Study (HCM)Ultimate Software are a leading cloud provider of comprehensive HCM solutions. Their award-winning, cloud-delivered human resources, payroll, and talent management offering transformed their business from primarily a license model to a subscription model for a higher percentage of recurringrevenues.

UltiPro is Ultimate Software's flagship PaaS solution that allows organizations to access greater people management functionality in the cloud. Through consultation with the client, Grosvenor Technology created the UltiPro Touchbase, an OEM employee kiosk designed exclusively for them.

We are increasingly seeing major Human Capital Management solution providers seeking supply partners whose differentiation strategies are aligned with their own, as they look to add greater value downstream.

Our tailored ‘custom build’ approach allows our partners to do this as we provide a collaborative and agile environment to build out a hardware, software and support solution to meet their specific needs. More and more we see the demand for some or all elements being provided under a PaaS model, which helps drive our recurringrevenues.

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Page 17: Imperial Capital Security Investor Conference€¦ · Financial Highlights 2018/ 19 2017/ 18 Variance % change £,000 £,000 £,000 Revenue 19,583 16,052 3,531 22 Operating Profit

Offering a Fresh Perspective on Access Control

Janus C4 is our customisable, network-enabled platform that delivers integrated solutions adding real value to our customers.

Sateon Advance is our browser-based access control solution, designed for ease of deployment on multi-site applications.

Three distinct software platforms, one modular hardware family:

Our Access Control hardware is modular and powerful. An intuitive, blade-based controller architecture and multiple software platform options combine to deliver slick and scalable solutions.

Linux based OEM variant of our Advance hardware. Designed to communicate with 3rd party software packages.

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Page 18: Imperial Capital Security Investor Conference€¦ · Financial Highlights 2018/ 19 2017/ 18 Variance % change £,000 £,000 £,000 Revenue 19,583 16,052 3,531 22 Operating Profit

Enterprise

Entry

Scalability / AC Functionality

Interoperability

Access Control Platforms

Pure AC Complete Building Management Solution

Sateon is a fully functioned, pure AC control platform that is suitable for all applications from Entry to Enterprise

Both platforms operate on common hardware. Our Access Control hardware is modular and powerful. An intuitive, blade-based controller architecture and multiple software platform options combine to deliver slick and scalable solutions.

Janus C4, is a Security Management System (SMS) that still has AC at its core. As such, it caters for the current market trend for many aspects of a building’s security system to be inter-connected and promote interoperability.

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Page 19: Imperial Capital Security Investor Conference€¦ · Financial Highlights 2018/ 19 2017/ 18 Variance % change £,000 £,000 £,000 Revenue 19,583 16,052 3,531 22 Operating Profit

Safetell is a physical security solutions and service provider. Our consultative approach to security allows us to form partnerships and become the standard authority on security specifications and bespoke solutions.

ü Manual attack resistant cash counters,windows and moving security screens

ü Bullet resistant doors and partitions

ü Interlocking door airlocks

ü Counter terror and target hardening solutions for organizations, governments and businesses

ü Consultative one-stop-shop for standard and bespoke physical security solutions and services

ü Cash and asset storage and transfersystems, customized to specific requirements

ü Storage functions to reduce the risk of harm or damage to a secure environment

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Page 20: Imperial Capital Security Investor Conference€¦ · Financial Highlights 2018/ 19 2017/ 18 Variance % change £,000 £,000 £,000 Revenue 19,583 16,052 3,531 22 Operating Profit

ü Decline in Traditional Marketsü Digital transactions have driven decline in both cashhandling,

retail banking and Safetell’s traditional markets.

ü Internal Restructureü A company restructure has delivered c£1.3m of annual cost reduction

and has further streamlined lower-cost operations and processes, improving responsiveness.

ü Focus on Core Competenciesü Following this period of restructure and refocus, the organization is now

better placed to leverage its expertise, specifically inservice provision.

Safetell Restructure

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Page 21: Imperial Capital Security Investor Conference€¦ · Financial Highlights 2018/ 19 2017/ 18 Variance % change £,000 £,000 £,000 Revenue 19,583 16,052 3,531 22 Operating Profit

ü Long-standing relationships with our blue-chip client base and our consultative approach to security has enabled Safetell to develop security solutions that not only provide cost savings for clients but helps drive greater recurring revenue streams from service and maintenance contracts.

ü Well trained and experienced service technicians capable of performing complex installations and maintenance of Safetell products as well as 3rd party equipment.

ü Additional investment has been made in sales and marketing resource to facilitate this strategy of growing recurring revenues through service provision.

Greater Focus on Service Provision

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Page 22: Imperial Capital Security Investor Conference€¦ · Financial Highlights 2018/ 19 2017/ 18 Variance % change £,000 £,000 £,000 Revenue 19,583 16,052 3,531 22 Operating Profit

ü Newmark Security plc is a leading provider of human capital management, electronic and physical security systems.

ü Group revenues of £19,583,000, serviced from 5 locations by 128 employees.

ü Along with strong positions in existing markets, we have begun leveraging our edge computing technology to support Industry 4.0 initiatives across the world

Summary

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Page 23: Imperial Capital Security Investor Conference€¦ · Financial Highlights 2018/ 19 2017/ 18 Variance % change £,000 £,000 £,000 Revenue 19,583 16,052 3,531 22 Operating Profit

Any questions?

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Page 24: Imperial Capital Security Investor Conference€¦ · Financial Highlights 2018/ 19 2017/ 18 Variance % change £,000 £,000 £,000 Revenue 19,583 16,052 3,531 22 Operating Profit

NEWMARK

DISCLAIMER§ The information contained in this confidential document (“Presentation”) has been prepared by Newmark Security PLC (the “Company”). It has not been verified and is subject to material updating,

revision and further amendment. This Presentation has not been approved by an authorised person in accordance with Section 21 of the Financial Services and Markets Act 2000 and therefore it is beingdelivered for information purposes only to a very limited number of persons and companies who are persons who have professional experience in matters relating to investments and who fall within thecategory of person set out in Article 19 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) or are high net worth companies within the meaning set out inArticle 49 of the Order or are otherwise permitted to receive it. Any other person who receives this Presentation should not rely or act upon it. By accepting this Presentation and not immediately returningit, the recipient represents and warrants that they are a person who falls within the above description of persons entitled to receive the Presentation. This Presentation is not to be disclosed to any otherperson or used for any other purpose.

§ While the information contained herein has been prepared in good faith, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers give, have given or haveauthority to give, any representations or warranties (express or implied) as to, or in relation to, the accuracy, reliability or completeness of the information in this Presentation, or any revision thereof, or ofany other written or oral information made or to be made available to any interested party or its advisers (all such information being referred to as “Information”) and liability therefore is expresslydisclaimed. Accordingly, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers take any responsibility for, or will accept any liability whether direct or indirect,express or implied, contractual, tortious, statutory or otherwise, in respect of, the accuracy or completeness of the Information or for any of the opinions contained herein or for any errors, omissions ormisstatements or for any loss, howsoever arising, from the use of this Presentation.

§ Neither the issue of this Presentation nor any part of its contents is to be taken as any form of commitment on the part of the Company to proceed with any transaction and the right is reserved toterminate any discussions or negotiations with any prospective investors. In no circumstances will the Company be responsible for any costs, losses or expenses incurred in connection with anyappraisal or investigation of the Company. In furnishing this Presentation, the Company does not undertake or agree to any obligation to provide the recipient with access to any additional information orto update this Presentation or to correct any inaccuracies in, or omissions from, this Presentation which may become apparent

§ This Presentation should not be considered as the giving of investment advice by the Company or any of its shareholders, directors, officers, agents, employees or advisers. In particular, thisPresentation does not constitute an offer or invitation to subscribe for or purchase any securities and neither this Presentation nor anything contained herein shall form the basis of any contract orcommitment whatsoever. Each party to whom this Presentation is made available must make its own independent assessment of the Company after making such investigations and taking such adviceas may be deemed necessary. In particular, any estimates or projections or opinions contained herein necessarily involve significant elements of subjective judgment, analysis and assumptions and eachrecipient should satisfy itself in relation to such matters

§ Neither this Presentation nor any copy of it may be (a) taken or transmitted into Australia, Canada, Japan, the Republic of Ireland, the Republic of South Africa or the United States of America (each a“Restricted Territory”), their territories or possessions; (b) distributed to any U.S. person (as defined in Regulation S under the United States Securities Act of 1933 (as amended)) or (c) distributed to anyindividual outside a Restricted Territory who is a resident thereof in any such case for the purpose of offer for sale or solicitation or invitation to buy or subscribe any securities or in the context where itsdistribution may be construed as such offer, solicitation or invitation, in any such case except in compliance with any applicable exemption. The distribution of this document in or to persons subject toother jurisdictions may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. Any failure to comply with theserestrictions may constitute a violation of the laws of the relevant jurisdiction.

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Page 25: Imperial Capital Security Investor Conference€¦ · Financial Highlights 2018/ 19 2017/ 18 Variance % change £,000 £,000 £,000 Revenue 19,583 16,052 3,531 22 Operating Profit

ü HCM will be the fifth largest market for enterprise applications by 2020 (Marketwatch.com)

ü The global HCM market is expected to grow to $22.5bn by 2022, displaying CAGR of 9.2% (Marketsandmarkets, 2017)

ü The Global Access Control market is expected to be worth $10bn by 2023, growing at 6.5% CAGR between 2017 and 2023 (Marketsandmarkets, 2017)

ü Card-based readers expected to drive growth. ‘Commercial’ is expected to be highest growth vertical sectors. Both factors expected to play well for Newmark’s product strategy (Marketsandmarkets, 2017)

ü European counter terror and public safety infrastructure will go through a major overhaul, sustaining 13.5% CAGR of 11.3%. Rising security concerns and increasing budget allotment for physical security are expected to drive the market (Grand View Research, 2016)

ü The global physical security market size is expected to be worth $110bn by 2020, growing at CAGR of 11.3%. Rising security concerns and increasing budget allotment for physical security are expected to drive the market (Grand View Research, 2016)

ü The growth of the physical security market can be attributed to the increasing demands for physical security measures to protect against incidents of terror attacks (Marketsandmarkets, 2016)

Both Grosvenor Technology/ GT Clocks and Safetell have product and go-to-market strategies in place to best take advantage of the general and specific growth opportunities that exist in their relevant market sectors.

Appendix

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