cyber security- information sharing ......the global cloud content delivery network market was...

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- C Y B E R S E C U R I T Y -- I N F O R M A T I O N

S H A R I N G -- C O L L A B O R A T I O N -

IPO INVESTOR PRESENTATION –JULY 2018

archTIS INVESTOR PRESENTATION – JULY 2018

D I S C L A I M E R

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No Warranties

This Information Memorandum/Presentation contains material provided to archTIS Ltd ACN 123 098 671 (“archTIS”) by various sources. No representation or warranty is made or should beimplied as to the accuracy or completeness of the material contained herein and no responsibility or liability will be accepted by archTIS or its directors for any loss or damage, howsoever arising,which results from an action or reliance in whole or in part on such material. The information in this Information Memorandum is not complete and may be changed. In particular, various contractsreferred to in this Information Memorandum have not yet been executed. Prospective investors should independently verify the material contained in this Information Memorandum/Presentation.No person has been authorised to give any information or to make any representations other than as contained in this Information Memorandum/Presentation and any representation orinformation not contained herein must not be relied upon as having been authorised by archTIS or its Directors.

This Information Memorandum/Presentation is issued by the Company and it has not been issued by any other person or their agents, officers, employees or affiliates.

Neither archTIS , nor its Directors, their agents, officers, employees or affiliates may make any express or implied representation, warranty or undertaking with respect to this InformationMemorandum/Presentation, and none of them accepts any responsibility or liability as to its accuracy or completeness or as to the suitability of the proposed investment for any particular investor.This Information Memorandum/Presentation should not be considered as a recommendation by archTIS or its Directors or any of their agents, officers, employees or affiliates in relation to anyproposed investment.

Confidentiality

This Memorandum is strictly confidential. By receiving this Memorandum, the recipient agrees:• to keep confidential the information contained in it or made available in connection with any further review or investigation of the information in this Memorandum, or the archTIS Business• to use this information for the sole purpose of deciding whether to invest in archTIS• to return all information to archTIS immediately upon request by archTIS• to not photocopy, reproduce, scan, email or distribute this Memorandum to any person by any means whatsoever at any time, without the prior written consent of archTIS• that this confidentiality obligation of the recipient does not amend or limit any other confidentiality or non-compete undertaking that the recipient may have already given to archTIS• applies to the recipient regardless of whether not they invest in archTIS or not; and• continues for a period of three (3) years from the date of this Memorandum.


I N V E S T M E N T O P P O R T U N I T Y

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CYBER SECURITY COMPANYAward winning Australian based company, established in 2006.

PROVEN TECHNOLOGYAlready developed technology platform that provides security, collaboration and content management.

”TOP SECRET” ACCREDITEDUnique document sharing platform currently in use by the Department of Defence. First secure content and collaboration software accredited to “TOP SECRET” by the US and Australian Departments of Defence to use attribute based access control (ABAC).

INTELLECTUAL PROPERTYInternational patents and Trademarks lodged.

UNLOCKING NEW POTENTIALFurther development of the platform into a government cloud and commercial cloud-based offering.

SIGNIFICANT MARKET OPPORTUNITYHealth, legal, accounting, investment banking and critical infrastructure.

IPO to raise $8M at $0.20 per share with listing expected

mid August 2018

IPO FOR A UNIQUE CYBER SECURE INFORMATION SHARING AND COLLABORATION PLATFORM


B O A R D

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EXTENSIVE EXPERIENCE AND PROVEN TRACK RECORD

Stephen Smith, Independent ChairmanStephen Smith was Federal Member for Perth for the AustralianLabor Party from March 1993 until September 2013. In a careerspanning 20 years in the Australian Federal Parliament, he servedas the Minister for Defence, and as Minister for ForeignAffairs. Stephen completed his Bachelor of Arts and Bachelor ofLaws at the University of Western Australia and a Master of Lawsin Public International Law at London University.

Daniel Lai, Managing DirectorDaniel is a Founder and Managing Director of archTIS. He hasextensive industry experience in successfully delivering outcomesas part of a senior executive team to both government andcommercial organisations. Daniel has led large complexdeliverables for major organisations such as the Department ofDefence and Australian Customs Service. Daniel is a regularspeaker at industry events and has been featured in theAustralian Financial Review and CIO magazine.

Bruce Talbot, Executive Director &Chief Technology OfficerBruce is a Principal Consultant,Director and Founder of archTIS. Heholds a Master Degree in BusinessTechnology (MBT), AdvancedDiplomas in Computing and RadarEngineering and a Diploma ofAdvanced Electronics. He also hasover 20 years in the AustralianDefence Force and a further 20 yearsin the commercial sector working forComputer Associates, Hitachi DataSystems, Airservices Australia and theAustralian Federal Police.

Leanne Graham, Independent Non-Executive DirectorLeanne Graham brings over 30 yearsof executive sales and technologyexperience, having founded a numberof successful software businesses.Leanne was the highly successfulformer New Zealand General Managerand global head of sales forXero. Leanne holds a number ofboard positions which includes Non-Executive Chair of Velpic, Non-Executive Director of Bid Energy bothASX listed fast growth companies aswell as Non-Executive Chair of APEMobile.

Wayne Zekulich, Independent Non-Executive DirectorWayne has a broad range ofexperience covering advice onmergers and acquisitions, arrangingand underwriting project financings,privatisations, and debt and equitycapital markets. Wayne has held therole of Chief Financial Officer ofGindalbie Metals Ltd, ChiefDevelopment Officer of Oakajee Portand Rail, Executive Vice PresidentCommonwealth Bank (WA, SA, NT)and Head of the Perth office of NMRothschild & Sons. He is currentlyHead of Perth for Deutsche Bank.


C A P I T A L S T R U C T U R E

IPO & CAPITAL RAISING

POST IPO CAPITAL STRUCTURE

SHAREHOLDINGS

PRE IPO CAPITAL STRUCTURE

Existing shareholders: 60,702,042 (50.68%)IPO Investors: 40,000,000 (32.5%)Directors & Management: 22, 394, 940 (16.82%)

Existing shareholders: 60,702,042 (50.68%)IPO Investors: 40,000,000 (32.5%)Directors & Management: 22, 394, 940 (16.82%)

Shares Currently on Issue: 83,096,982 sharesOptions Currently on Issue (1): 14,589,880Partly Paid Shares on Issue: 720,000

Minimum Raise: A$8,000,000Share Price: A$0.20No of Shares Issued Under the IPO:

40,000,000

Options Issued to Advisors (2): 5,000,000

Issued Capital: 123,096,982 shares

Market Cap (@ A$0.20): $24.6mCash at Bank ex fees: ~$9.0mEnterprise Value: ~$15.5m

Existing Shareholders: 60,702,042 (50.68%)IPO Investors: 40,000,000 (32.5%)Directors & Management: 22,394,940 (16.82%)

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1 4,289, 880 Options @ $0.10 on or before 10 October 20221 7,500,000 Options @ $0.12 on or before 1 February 20211 1,200,000 Options @ $0.20 on or before 1 July 20231 1,600,000 Options @ $0.20 three years from date of issue2 5,000,000 Options @ $0.24 four years from date of issue


a r c h T I S H I G H L I G H T S

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• archTIS received the Defence Excellence in Security Award (2014)

• Employs 35 staff worldwide

• Government security clearances in place from “’TOP SECRET” to “BASELIINE”

• Certified Defence Industry Service Partner

• Developed first “TOP SECRET” ABAC content security and collaboration software for US and Australian Departments of Defence

• Approximately $13 million revenue over the last six years

• Currently providing services to a number of government agencies including Department of Defence, Department of Home Affairs and Department of Foreign Affairs and Trade

12 YEAR PROVEN TRACK RECORD WITH US AND AUSTRALIAN GOVERNMENT AGENCIES

• Wealth of experience and strong client relationships in place in government and private enterprises

KEY PARTNERS


O U R J O U R N E Y

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CAPITALISING ON NEW MARKETS


T H E a r c h T I S T E C H N O L O G Y

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CYBERSECURITY AND SECURE INFORMATION SHARING A SUITE OF PRODUCTS AND SERVICES

archTISServices

• Solutions for on premises secure

content and collaboration

• Used in Department of Defence

• Secure content and collaboration cloud

service for the commercial sector

• Portable secure content and

collaboration appliance for remote and isolated

areas

• Centralised security management product

that underpins Kojensi

• Secure content and collaboration cloud

service for government

agencies

Kojensi-Gov Kojensi-Cloud Kojensi-Field DataKloak


• Current solution sold to Defence

• Built from a number of commercialoff the shelf products augmentedwith proprietary archTISintellectual property

• Solution can be sold directly toEnterprises as a SystemIntegration sale and is the coreunderlying technology in otherarchTIS product lines

a r c h T I S - S E R V I C E S

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SYSTEM INTEGRATION SERVICES FOR THOSE ORGANISATIONS THAT WISH TO HAVE AN ON-PREMISES SOLUTION FOR SECURE CONTENT COLLABORATION AND

MANAGEMENT


K O J E N S I G O V

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• Kojensi Gov will be hosted in agovernment certified secure cloud service

• Proof of Concept with theCommonwealth Department of Financehave been successfully completed

• SaaS-based pricing model

• Product Development is underway with aBeta launch expected during 4Q18

KOJENSI GOV CAN BE CONFIGURED AS A PUBLIC OR PRIVATE OFFERING. IT IS DESIGNED TO BE COMPLIANT WITH AUSTRALIA, NEW ZEALAND, CANADA, UK & USA

GOVERNMENT REQUIREMENTS (“FIVE EYES”)


K O J E N S I F I E L D P R E - C O N F I G U R E D A P P L I A N C E

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KOJENSI FIELD WILL BE AN APPLIANCE THAT HAS BEEN DESIGNED FOR MOBILITY AND RAPID DEPLOYMENT FOR SMALL USER COMMUNITIES UP TO

250 USERS

• Kojensi Field will be a Secure Content andCollaboration appliance (pre-configuredturnkey solution)

• Kojensi Field will be sold as a rapidly deployedproduct that can service up to 250 users

• Uses include military deployments and humandisaster relief efforts


1. The UI/UX has been designed after extensivemarket research and consultation with ourclients. It has been developed as a RESTGraphic User Interface so is independent of theunderlying technology.

2. DataKloak is the command centre for AttributeBased Access Control. From here you publishand populate policies and attributes forinformation, devices, identities and systems foraccess control.

3. DataKloak is designed to be vendor agnostic sothat it can be integrated with different products.At present, interfaces have been developed forOracle Content Manager and Microsoft ActiveDirectory.

D A T A K L O A K

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DataKloak

UI /

UX

(Use

r Cen

tric

Inte

rface

)

Enterprise Content Management

System

ABAC engine(Attribute Based Access Control)

Core Capability

1. Single interface to multiple products

2. Simplifies configuration3. Reduces administrative

overheads4. Decreases security risk

• Unique IP developed by archTIS, patent pending

• Utilised in all archTIS products and can be licensed independently for any third party content and/or collaboration products

CENTRAL USER INTERFACE TO MULTIPLE UNDERLYING SYSTEMS


R E V E N U E M O D E L12 YEARS ESTABLISHED CONSULTING & SYSTEMS INTEGRATION

CLIENT BASE

CONSULTING SYSTEMINTEGRATION

CLOUD BASERECURRINGREVENUES

TECHNOLOGYPRODUCT

SALES

ENTERPRISE CUSTOMERS PAYING PER

USER

CYBER SECURITY THREAT

PROVIDES GROWTH DRIVERS

HIGHLY VALUED BY STRATEGIC

INDUSTRY PLAYERS

GLOBALLYSCALABLE

RECURRINGREVENUE

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archTIS INVESTOR PRESENTATION – JULY 20180.50% CuEq cut-off

C Y B E R S E C U R I T Y M A R K E T

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THE OPPORTUNITY

CONTENT SECURITY

www.prnewswire.com, 2018

SIGNIFICANT GROWTH IN GLOBAL CYBER MARKET

The global cloud contentdelivery network marketwas valued at US$5 billionin 2017. Expected to reachUS$20 billion by 2025.

Critical need particularlyfrom governments tosecurely collaborate andshare information.

H A L F O F A L L C L O U D S E C U R I T Y S E R V I C E R E V E N U E W I L L C O M E F R O M C O N T E N T S E C U R I T Y B Y 2 0 1 9

PageUp


• Completed extensive competitor analysisincluding active use of competitor products

• Direct engagement and feedback from ourtarget clients who are assisting in productdesign

• Most importantly we have a niche market ofclassified information and a competitiveadvantage in accessing this market. We are theonly company that offers a solution with thebenefits of ABAC security to a content andcollaboration product

• Current competitors in the AustralianGovernment Secure Content market includeSIgBox and Objective - both were evaluated bythe Department of Finance as unsuitable for atrial

• Overseas competitors include Box and Huddlehowever neither are certified to handle highlyclassified material

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a r c h T I S H A S T H E T O T A L P A C K A G E

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A COMPLETE SECURE CONTENT, COLLABORATION & INFORMATION SHARING PLATFORM


W E L L P O S I T I O N E D S T R A T E G I C A L L Y

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• “Top Secret” accreditation by US and Australian Governments

• Compliant with: ISO 27001, AGRKMS, SGLS, DDMS 5.0, NIST SP 800-5, WCAG 2.0

EXCLUSIVE ACCREDITATION COMPLETE SOLUTION PROVIDER• Limited competition in the Australian Secure Content

market, with other providers determined unsuitable or not authorised to provide for government agencies

• Employees cleared to work within defence/government/intelligence

• US National Institute of Standards and Technology• Proven capabilities in restricted areas of government

TRUSTED RELATIONSHIPS• Recent high level cyber security breaches gaining

significant media attention and causing increased concerns from community and organisations

• Critical demand from government and national security agencies

STRONG DEMAND

UNIQUELY POSITIONED TO EXPLOIT RAPIDLY GROWING MARKET


I N T E L L E C T U A L P R O P E R T Y

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• Patent application for DataKloak in place• Three critical aspects of the platform (Kojensi & DataKloak):

1. SecurityABAC: attribute-based access control (ABAC) enables the Kojensi security model.

2. ManagementDataKloak: DataKloak is Kojensi’s security management command centre and will also be sold as

an independent product.

3. UsabilityUI/UX: archTIS has developed a powerful user interface / user experience that allows seamless

simultaneous usability of Kojensi for multiple users from multiple organisations.


ACTIVITY PIPELINE NEXT SIX MONTHS

P I P E L I N E O F V A L U E A D D M I L E S T O N E

18archTIS INVESTOR PRESENTATION – JULY 2018


T W O Y E A R U S E O F F U N D S

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Min Subscription($8m raise)

% of Funds

Existing cash reserves $1,100,000 12%

Funds raised from the Offer $8,000,000 88%

TOTAL $9,100,000 100%

Ongoing Product development $2,200,000 24%

Sales and marketing $1,500,000 17%

Repayment of existing banking facility $300,000 3%

Expand customer support capability $1,000,000 11%

Working capital and other expenses $3,300,000 36%

Costs of the Offer $790,000 9%

TOTAL $9,100,000 100%


T I M I N G

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SIGNIFICANT DATES

LODGMENT OF PROSPECTUS 19 JULY 2018

EXPOSURE PERIOD BEGINS 19 JULY 2018

OPENING DATE OF THE OFFER 26 JULY 2018

CLOSING DATE OF THE OFFER 16 AUGUST 2018

ISSUE OF SHARES UNDER THE OFFER 19 AUGUST 2018

DESPATCH OF HOLDING STATEMENTS 19 AUGUST 2018

EXPECTED DATE FOR QUOTATION OF SHARES 23 AUGUST 2018

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* Indicative dates only


I N V E S T M E N T S U M M A R Y

PROVEN TECHNOLOGY In production and used by Department of Defence

CRITICAL DEMAND Governments and organisations need to secure and share sensitive information

MARKET OPPORTUNITY Developing Kojensi into a cloud based service for government and commercial sectors

TRENDING ISSUE Cyber security and the global movement towards cloud based computer services are key market drivers

INTELLECTUAL PROPERTY Patent application submitted for DataKloak

STRONG TEAM Security clearances in place to work within the highest levels in government. Significant IT and government experience

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C O N T A C T U S@ A R C H T I S

Daniel Lai, Managing Directorwww.archtis.com

Tel: +61 419 528 [email protected]

Level 310 National CircuitBarton ACT 2600Australia

Lead Manager ContactJason Peterson, Director & Head of Corporate


Level 45108 St Georges TerracePerth WA 6000Australia

Corporate AdvisorHarry Karelis, Director


Level 5235 St Georges TerracePerth WA 6000Australia

cyber security- information sharing ......the global cloud content delivery network market was...

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