OpenLimit Technology Leader for Electronic Authentication, esignature and Long term Storage Solutions Company Presentation
Company Profile Internationally leading provider of certified software for electronic signatures and identities as well as long term storage with preserved evidentiary value First company globally to develop and certify a signature software application according to the highest h security standard evaluation level (Common Criteria EAL 4+) Headquartered in Baar (Switzerland) and subsidiary in Berlin (Germany), currently 61 employees Publicly traded in Germany. Market capitalization of EUR 19 million (Xetra, May 3, 2012) Exclusive vendor to Siemens for the application software ( AusweisApp ) for the new ID card in Germany, also in cooperation with the Bundesdruckerei d for the eid server Exclusive, global cooperation partner of Fujitsu in the field of technologies for the long term maintenance of evidentiary values of electronic documents (certified product SecDocs ) OpenLimit Group Page 2
The OpenLimit Team Board of Directors Henry Dattler President, Founder René C. Jäggi Vice-President, Delegate Eduard Egloff Member Univ. Prof. DDr. Radu Popescu-Zeletin Member Management Team Marc Gurov Reinhard Stüber Armin Lunkeit Dirk Arendt Andreas Eulenfeld Christian Fuessinger Chief Executive Officer Sr. Vice-President Chief Development Officer Vice-President Corporate Communications Chief Sales Officer Chief Financial Officer The long term core team has been systematically expanded and strengthened over the last few years OpenLimit Group Page 3
Highlights g 2011 Financial Operational Strategic Sales up by 7% New eid server customers (e. g. KDRS, Datev, Atos Worldline ) Conclusion of OEM contract with Fujitsu EBITDA increased by 6% to EUR 960K First key account clients for v3.0 Middleware Strategic expansion of the product portfolio ( Qrypto product line) Net loss fell by 31% compared to the previous year Completion of various official certification processes New appointments to Board of Directors and Management In 2011 OpenLimit i reached dimportant strategicmilestones il to ensure long term, sustainable growth OpenLimit Group Page 4
What are the Strengths of OpenLimit as Technology Leader? Electronic Signature Individual Signatures Batch Signatures einvoicing / eforms Digitizationiti Projects Legally binding electronic signature has huge market potential eid German IDcard/ AusweisApp Health Card/ HPC Employee ID Card (V3) eid server/ eid service International eid projects EU Project STORK Flagship project new ID card wins EU ID Award OpenLimit i Base Components = Middleware Evidentiary Value Preserving Long term Storage Fujitsu SecDocs powered by OpenLimit First certification worldwide according to the CC ArchiSafe protection profile pending Other Developments & Multiplicators New products with Fujitsu Cloud computing authentication and data storage in the cloud Consumer products: QryptoMobile / QryptoVesta emobile eid solution (patent pending) Security technologies for Smart topics (smart home / city / grid) Transaction based revenue models Internationalization The OpenLimit middleware base components enable a multitude of application scenarios with strong business case in the public and private sectors OpenLimit Group Page 5
Reference Customers and Projects 2011 Customers s VAD Services (Value Added Distributors) eid Signature Digitization project in the public sector, Nuremberg City, State of Baden Württemberg, Registration Offices in Germany, CHEP Scan Service Providers SecDocs Substantial number of project opportunities in the pipeline OpenLimit Group Page 6 OpenLimit was able to acquire several key customers and to implement important projects in the strategic core field of high security technology
New Strategic Approach of OpenLimit High Security eg e.g. AusweisApp, eid Server, SecDocs, Smart Topics: OpenLimit established as technology leader; applications to meet the demand for high security, provability and legal compliance Sec curity New since 2011 Medium Security Standard Security QryptoVesta: Simple, cost effective signature solution for everyone (available since Q4 2011) QryptoMobile: hardened USB stick with security software and certificate for secure browsing, emailing and storage of data including an info channel (available since Q3 2011) OpenLimit Group Page 7 Size of Market In 2011 OpenLimit expanded its product portfolio. Goal: to develop products that enable users to easily realize online security and thus enter into new markets
Fujitsu SecDocs powered by OpenLimit October 20, 2011: OpenLimit and Fujitsu sign OEM Agreement Global distribution by Fujitsu Participation in licensing revenues Scan Sign Evidentiary Value Preserving Storage April 27, 2012: OpenLimit and Fujitsu sign Exclusivity Agreement for a five year period Fujitsu contributes to past development expenses and participates i t in future development costs Minimum revenueguaranteeforthenextfiveyears Development of new technologies which remain to be defined Joint exploitation of patents Physical Documents Banks Public Authority Insurance Others Fujitsu SecDocs OpenLimit MigSafe OpenLimit OverSign Store on Server or in the Cloud Evidentiary Value Preserving Significant Savings Locate Quickly Enormous revenue potentialwiththe the world s first certifiedsolutionof of itskind OpenLimit Group Page 8
How Does OpenLimit Generate Revenues? Revenue Distribution 2011 2% 9% Products & Licenses 45% Services Maintenance & Support 44% Miscelaneous Revenue Distribution 2010 4% 12% Products & Licenses 45% Services Maintenance & Support 38% Miscelaneous Products & Licenses Single and volume licenses Transaction based: Pay per Signature, etc. Maintenance licenses Upgrades (product cycle ca. 1.5 years) Services Software development contracts Implementation, consulting and training services Software Maintenance & Support On avg. 15 20% (net) of list price In general for a period of 1 3 years Hardware & Other Sources E.g. hardware such as HSM, smart cards, USB sticks Business model continues to develop towards licensing and transaction based revenues OpenLimit Group Page 9
Key Financials (in thousands) FY2010 (EUR) FY2011 (EUR) FY2011 vs. FY2010 HY1/2011 (EUR) HY2/2011 (EUR) 2011 HY2 vs. HY1 REVENUE 5'371 5'745 7% 1 756 3 989 127% TOTAL INCOME 7'827 8'050 3% 2 858 5 192 82% EBITDA 904 960 6% 677 1 637 342% EBIT 859 1'223 42% 1 697 474 128% FINANCIAL RESULT 743 124 83% 189 313 266% NET PROFIT / LOSS FOR THE PERIOD 1'638 1'129 31% 1 886 757 140% EMPLOYEES 60 61 2% 61 61 0% In the financial year 2011, a large part of the annual revenue and EBITDA was generated in the second half of the year, especially in the last quarter Exchange rate losses were substantially reduced as a result of switching the functional currency to EUR on 1.1.2011 OpenLimit Group Page 10
The OpenLimit Stock Share Price Development (12 Months) 1.5 1 OpenLimit Holding AG SDAX Perf-Ind 1.14 OpenLimit OPENLIMIT Holding HLDG AG (O5H) 1 2 3 22.06.11 Capital Raising Measure (Convertible Loan) 24. 08.11 Semi Annual Report 2011 02.09.11 Capital Increase 0.6 4 20.10.2011 OEM Contract with Fujitsu 0.5 0.4 0.3 May 2011 Jun Jul Aug Sep Oct Nov Dec Jan 2012 0.38 Source: Bloomberg UBS AG Feb Mar Apr 5 6 18.11.2011 New Member of the Board Announced 01.03.2012 OpenLimit Version 3.0 Confirmed Compliant with German Signature Law 7 27.04.2012 Exclusivity Agreement with Fujitsu Turnaround in share price development with a 150% increase since the beginning of the year 8 30.04.2012 Annual Report 2011 published OpenLimit Group Page 11
The OpenLimit Stock Analyst Forecasts WKN / Symbol / ISIN: A0F5UQ / O5H / CH0022237009 Stock Market / segement: Frankfurt / Regulated Market (General Standard) Initial Listing: August 2005 Number of Shares: 19'153'551 Type of Shares: Bearer Shares Nominal Value: CHF 0,30 Designated dsponsor: ICFK Kursmakler AG, Close Brothers Seydler Bank kag Free Float: 67% Analyst: First Berlin Equity Research GmbH, Montega AG Equity Research Analyst Date Revenue ( m) EBIT ( m) Net Income ( m) 2012 2013 2014 2012 2013 2014 2012 2013 2014 Rec. Target Price ( ) First Berlin May 7, 7.5 11.1 15.5 0.02 1.2 3.0 0.03 1.1 2.9 (Simon 2012 Scholes) +30% +48% +40% NM NM 150% NM NM +164% Buy 2.00 Montega AG (Alexander Braun) May 3, 2012 7.4 +29% 9.2 +25% 10.9 +18% 0.2 NM 0.8 +300% 1.9 +138% 0.1 NM 0.7 600% 1.8 +157% Buy 1.50 A positive outlook is also confirmed by analysts OpenLimit Group Page 12
Strategy and Outlook 2012+ Focus on key competences Client Components: v3.x, AusweisApp, Qrypto product line Server technologies: SecDocs, eid server, signature / verification server Increase technological lead Development of new topics: Cloud Computing: OpenLimit technologies as service, authentication in the cloud Combining the OpenLimit technology portfolio with partners, in order to position novel solutions in the market New sectors in which data privacy and data security play a decisive role: e. g. Smart topics, emobile Developing new products with Fujitsu which remain to be defined Consumer products for continuous revenue growth: product line Qrypto Expansion of the sales organization, new focus on sales and establishing new partners Reinforcement of the sales team under the leadership of the newchief Sales Officer Focus on industrial customers Focus on strategic partnerships and new partners in the following areas: system integrators, document producers, scan service providers, information service providers, consulting companies, smart topics, desaster recovery International activities via strategic partners The overall objective is to develop and sell a universally applicableand certified authentication ti ti / signature solution in all essential markets OpenLimit Group Page 13
Illustration Roadmap& Growth Potential (Equity (q Research Forecasts Median in M) Revenue Operating Cost EBIT Reference projects with substantial upfront investments 6.4 Implementation AusweisApp; Focus on server products Installation eidserver; Completion OL v3 certification; first services; Distribution of the Qrypto product line (consumer product) SecDocs exclusivity and new projects; transaction revenue increases; Realignment of sales; Qrypto line established 7.4 6.9 7.1 7.3 5.4 5.8 ecardin Germany established; network effect; emobile; new countries; Fujitsu SecDocs sold internationally; Smart topics 10.1 9.1 13.2 10.7 16.7 12.9 4.4 3.8 2.4 1.0 0.1 0.8 0.9 1.2 2009 2010 2011 2012 2013 2014 2015 As technological leader OpenLimit can be expected to benefit disproportionally from accelerating market growth OpenLimit Group Page 14
OpenLimit Investment Highlights g Only company worldwide offering a Common Critieria EAL 4+ IT security certified signature software Exclusive supplier of the application software ( AusweisApp ) for the new ID card in Germany. Since November 1st, 2010, rolled out to 6 8 million citizens annually. New international business opportunities will arise Thanks to cooperations with renowned partners and the technological advantage, OpenLimit is well positioned in growth markets like electronic identities and long term storage OpenLimit together with Fujitsu have the only certified solution for reliable long term storage of electronic documents worldwide OpenLimit s business model is shifting towards license and transaction based revenues with superior profit margins Data privacy and data security play an increasingly important role. Here, new business opportunities arise for OpenLimit and these business segments can be operated with the exclusive partner Fujitsu amongst others OpenLimit Group Page 15
Q&A Thank You For Your Attention OpenLimit Group Page 16
Appendix OpenLimit Group Page 17
Consolidated Income Statement 2011 01.01.2011 31.12.2011 01.01.2010 31.12.2010 CHANGE IN % IN EUR IN EUR Revenue 7% 5.745.373 5.371.217 Company produced additions to software development 6% 2.304.388 2.456.176 TOTAL INCOME 3% 8.049.762 7.827.393 Costs of good sold 60% 167.233 104.679 Personnel expenses 1% 5.339.100 5.265.428 Depreciation & Amortization 24% 2.182.221 1.763.461 Operational expenses 2% 1.583.764 1.552.907 7% 9.272.317 8.686.475 INCOME FROM OPERATIONS 42% 1.222.556 859.082 Financial income 83% 1.871 11.167 Financial expenses 83% 125.525 753.976 83% 123.654 742.809 INCOME BEFORE TAX 16% 1.346.209 1.601.892 Tax income / expense 694% 216.736 36.480 ( ) LOSS / PROFIT FOR THE PERIOD 31% 1.129.473 1.638.372 OpenLimit Group Page 18
Consolidated Balance Sheet as of December 31, 2011 31.12.2011 31.12.2010 ASSETS CHANGE IN % IN EUR IN EUR NON CURRENT ASSETS 3% 4.901.361 4.747.056 Intangible assets 5% 4.771.700 4.565.456 Plant and equipment 29% 129.662 181.599 CURRENT ASSETS 38% 7.439.986 5.381.497 Trade and other receivables 51% 7.047.480 4.681.779 Cash and cash equivalents 44% 392.506 699.718 TOTAL ASSETS 22% 12.341.347 10.128.553 EQUITY 2% 8.914.368 9.111.169 Share capital 6% 4.604.912 4.344.089 Reserves from capital contribution (2010: Share premium) 3% 9.763.416 9.515.091 Reserve for share based payments 26% 1.430.931 1.132.245 Accumulated loss 17% 6.884.891 5.880.255 CURRENT LIABILITIES 103% 1.588.232 780.481 Trade account payable and other liabilities 105% 1.578.122 768.927 Tax liabilities 12% 10.110 11.554 LONG TERM LIABILITIES 676% 1.838.747 236.904 Pension plan 43% 236.903 236.904 Convertible loan NM 1.500.000 0 TOTAL EQUITY AND LIABILITIES 22% 12.341.347 10.128.553 OpenLimit Group Page 19
Key Shareholders 67.48% 0.4% 11.13% 8.84% 6.79% 5.48% Heinrich Dattler René C. Jäggi 2 131 323 1 693 184 Enuhill Portfolio 1 300 943 Inc. Robert E. Züllig 1 050 000 Free Float Other Board & Mgmt Members 11 932 680 191 637 OpenLimit Group Page 20
Cautionary Statement Regarding Forward-Looking Statements Forward looking statements are given in this presentation which also contain predictions about forwardlooking events, trends, measures or goals. Such statements are indicated by formulations like "will" or "growing" and similar expressions. The forward looking statements mentioned in this document are based on the expectations of the company (including subsidiaries) at this time. As these forward looking statements aresubject to risks and uncertainty, this could cause the results and the plans and goals of OpenLimit Holding AG to deviate substantially from those which are explicitly or implicitly described in these forward looking statements. Factors which may cause these plans, measures and results to substantially deviate from the current expectations include: (i) the general political, economic and competitive situation on markets and in countries in which the company or its branch offices are active, as well as exchange rate leverage and other risks which are connected with foreign dealings; (ii) general technological developments, (iii) the capability of the company to develop and market new products and technologies, as well as acceptance of such products or technologies by customers of the company, including the resultant incapacity of the company to achieve forecast turnovers; (iv) the timed coordination oroccurrence occurrence (as well as non occurrence) occurrence) oftransactions and events which among other things do not fall within the sphere of influence of the company or its branches; (v) changes to the credit ratings of partners and customers; (vi) changes to the prices of products as well as their negative impact on the company s turnover and profit margins from these products or (vii) costs in connection with changes to legal regulations. OpenLimit Holding AG is not obliged to update or to revise these forward looking statements to take into account new information, future events or circumstances. OpenLimit and other brand or company names and their logos contained in this presentation are the property of their rightful owner. We herewith acknowledge all brand and company names and their respective logos OpenLimit Group Page 21
OpenLimit Holding AG Zugerstrasse 76b CH 6341 Baar Telephone +41 41 560 10 20 Telephone +41 41 560 10 20 Fax +41 41 560 10 39 ir@openlimit.com www.openlimit.com