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andrbea3 May '18 - 09:08 - 92725 of 92744 0 11 0 I have edited the long post (92519) as Gemalto should have a real figure on it: so that affects the (theoretical) SP for Tern down the line: Gemalto (IAM & IoT market) Gemalto is the global leader in digital security, with 2017 annual revenues of �3 billion and customers in over 180 countries. We bring trust to an increasingly connected world. Device Authority�s KeyScaler technology is using Gemalto�s SafeNet Luna HSM to enable customers to achieve their IoT strategy and ultimately increase the pace of IoT adoption,� said Todd Moore, SVP, Encryption Products, Gemalto. �As the IoT enterprise industry continues to grow and migrate to cloud first technologies, Gemalto is also bringing to the partnership the new SafeNet Data Protection On Demand solution /// (via this integration, enable their HSM customers wishing to use KeyScaler to be IoT and blockchain ready) // Say 1.5% of that revenue for DA. 1.5% x 3bn eur (= $3.59bn) / year = $0.0538bn/year. P/E of 30 = $1.614bn mkt cap for DA (based on 1 client Gemalto). say 47% of which (instead of 57%) is for tern = mkt cap of $0.758bn (or �560m) +++ As for the cloud sector Total revenue for AWS in Q1? $5.44 billion, according to Citi. By comparison, Microsoft made about $1.9 billion in cloud revenue in the first quarter, while Google cloud revenues are at $1.7 billion (and this includes G Suite and Google Apps). Assume DA (in time) could justify 0.5% of the annual revenue in the cloud, by securing the respective platforms (AWS and Azure), that end-clients use to migrate their IoT devices to. They would encounter DA's software at the site enrolment stage (so all users) ? Assume 0.5% of that revenue flows to DA 0.5% x (1.9 + 5.44) x 4 = $ 0.146bn/year for DA Tern's cut = 42% = $ 0.0615bn x p/e of 30 for the mkt cap for tern (from the cloud sector) (or 30x �0.045bn) = 30 x �45m = �1,350m ** mkt cap at tern (after p/e calculation on expected full-year revenue) just add 4 of the sectors together.. Intel: �693m Comodo: �114m Gemalto: �560m Cloud sector (Azure + AWS) = �1,350m Total: �2,717m so approx �11.77/share at tern

Aggregate valuation With more than 85 million desktop security software installations, 700,000 business customers and 8,000 global partners and affiliates, Comodo is building a new IoT security services platform ("the Platform") which will be powered by Device Authority's KeyScaler technology.�� Take that client base at Comodo Assume, each business buys 3 new EV certificates per year Imagine that DA negotiates a revenue cut of 3% for making that PKI platform secure (3% of annual revenue) So DA gets: 199 ($ per year/certificate) x 700000 x 3 x 0.03 = $12.5m in annual revenue so mkt cap of DA on a P/E of 30 (from 1 client Comodo in a full year) = $376m 42% for tern's (small) shareholders = a tern mkt cap of $157m (�114m). +++ Using that IoT revenue figure at Intel of $840m/quarter Say 2% of that per quarter for DA (for chip authentication, SDO onboarding (incl. retroactive), perhaps later in the cloud too, or their IoT healthcare platform) 2% x 840 x 4/year = $67.2m/year. P/E of 30 = $2,016m mkt cap for DA (based on 1 client Intel). say 47% of which (instead of 57%) for tern = mkt cap of $947m. (or �693m) +++ As for the cloud sector Total revenue for AWS in Q1? $5.44 billion, according to Citi. By comparison, Microsoft made about $1.9 billion in cloud revenue in the first quarter, while Google cloud revenues are at $1.7 billion (and this includes G Suite and Google Apps). Assume DA (in time) could justify 0.5% of the annual revenue in the cloud, by securing the respective platforms (AWS and Azure), that end-clients use to migrate their IoT devices to. They would encounter DA's software at the site enrolment stage (so all users) ? Assume 0.5% of that revenue flows to DA 0.5% x (1.9 + 5.44) x 4 = $ 0.146bn/year for DA Tern's cut = 42% = $ 0.0615bn x p/e of 30 for the mkt cap for tern (from the cloud sector) (or 30x �0.045bn) = 30 x �45m = �1,350m ** mkt cap at tern (after p/e calculation on expected full-year revenue) just add 3 of the sectors together.. Intel: �693m Comodo: �114m Cloud sector (Azure + AWS) = �1350m Total: �2157m so approx �9.35/share at tern The full post has it at �15 a share

Conversation with Bruce Leith Bruce came across as a genuine and nice guy. It was clear the last 2-3 years has hurt the BOD as much as shareholders. For example, a number of Bruce�s family have shares in ISA�s bought at 14,12, 10, and 8 pence. It is clear the single issue that has stymied progress has been the time it takes to consummate a deal (typically 12-18 months) and then integrate Keyscaler into the eco system offer. This is due to global tech companies themselves struggling to shape their offer to the market and the way these companies deal with their supply chain in terms of budgets, approvals, gateways etc. Essentially, think of a timescale and double it. Intel took 18-24 months but things are moving rapidly; Keyscaler will be �on chip� and in the cloud for the Intel solution. In summary, they are 12 months behind where they thought they�d be. The US fund raise is still open but didn�t take off due to the slow uptake of contracts + a poor understanding of what is being developed. Device Authority are talking with Microsoft and ARM (DA were approached); global�s will use DA rather than spend years developing in house; ALL ABOUT TIMING! Last week�s San Francisco conference went well with significant interest shown in DA. There is significant interest in DA and �players are circling�. They�ve already had offers that have been rejected (at above the current TERN market cap). The dilemma is the timing of sale of DA versus timing of value created by the global partnerships versus the cost of funding a growing company. Also, in order to attract institutional investors to TERN, they need to prove the business model by selling a company for a significant return. Whilst Bruce wouldn�t be directly drawn, my impression was a �75-100million offer (short term) will be considered. Bruce so stated a realistic aspiration that TERN will be valued at �100 million within 12 months. I left the event feeling extremely positive that our money is in safe hands and the share price will be multiples of what it is today in the coming months. My personal preference/issue is they find a way to keep DA for another 2 years unless a �250 million offer is tabled as there�s no reason why DA shouldn�t be valued at �1 billion + within 3 years. Ultimately, I cannot find a reason to sell my shares anywhere below �1. Hope this helps but DYOR,NAI.

Highly Geared21 Apr '18 - 23:28 - 89923 of 89951 0.162777 36 0 Further to yesterday�s brief post, I had the pleasure of sitting through the TERN presentation by Bruch Leith and the chance to talk to him in detail for about 15 minutes after. Bruce came across as a nice guy and indeed, he explained some of the personal issues that Al Sisto has had to deal with in the last 3 years and it puts things in perspective. Presentation Key points: - Al Sisto; career in Intel; encryption expert with expert knowledge of what�s needed in the IOT space. - Al Sisto California based but spends approx. 50% of his time in the UK. - Tern; the leading investment company in the IOT space. - Bruce Leith; primary role; finding new deals/investment companies (note; at last, people now in dedicated roles rather than trying to do everything). - Bruce; looking at 4 new investment companies , deals imminent , subject to term sheets and due diligence completion. - Working with Microsoft (possibly through In VMA). - Device Authority : hungry for cash due to growth; building product and distribution channels with Global technology companies - Intel deal; took 2 years to consumate; 7 months behind schedule mainly due to Intel internal process/sign offs. DA will handle authentication of Intel chip and through the Cloud - GEC; launched in USA last week (medical devices); launch re-scheduled to enable DA integration to be integral to the product. Enables 24/7 monitoring and treatment remote from hospital of patient condition but all data secured by DA. Huge market potential. - Strong play � authenticating sensors and at point of application; data remains secure throughout. - Products are now being rolled out; very well placed! Data analytics will also be a revenue growth area. - IOT take up by global tech has been slower than envisaged but now starting to gain traction and momentum. - 8 fold increase in security attacks in the last year; DA has a hack proof platform that automates at scale. - Strong patent suite that global�s cannot copy - DA life cycle has seen 12-24 month sales campaign followed by a 9-12 month product development/integration period. THIS IS WHY IT HAS TAKEN TIME TO REACH PARTNERSHIP AGREEMENT AND PRODUCT ROLL OUT. Global tech companies are slow to progress due to internal approvals, budgets and priorities. - Now in a position to deploy Keyscaler globally with good evidence of several major customer contracts signed in the last 6 months. - THALES/GEMALTO; TO BUILD A BUSINESS AROUND DA/KEYSCLER; 2018-2021 RAPID GROWTH ENVISAGED - PTC; a $6 billion company with DA intrinsically linked! - Verticals/markets huge; sensors/data transmission now permeating every aspect of global world/life. - Emphasised high profile global partners. - THALES; LOOKING AT HUGE USA DEAL WITH ROBOTICS DELIVERING SURGICAL PROCEDURES � DA WILL BE INTEGRAL TO SECURITY. - AMAZING THINGS TO COME�� In VMA - P

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