Market Update

• FY2025 sales expected to be slightly below FY2024
• Softer sales due to tighter customer budgets, Thales integration
• Potential for longer-term upside from autonomous vehicles, AUKUS projects

Senetas Corporation Ltd (ASX: SEN) has provided an update on its business performance for the 2025 financial year and developments relating to the sale of the Votiro business. The company expects FY2025 sales to be slightly below FY2024, citing softer sales reported by its global distribution partner Thales. This is attributed to tighter customer budgets and management changes at Thales due to its integration of the recently acquired Imperva business, which have affected the timing of sales completions. However, Senetas has continued to see good growth in its sales pipeline through the year and remains positive about a strong month of June to close out FY2025. The company also highlighted potential longer-term upside from its engagements on technology projects such as autonomous vehicles (drones) and participation in the AUKUS submarine industrial base pilot program led by Honeywell, following further testing and successful trials. Senetas also provided an update on the sale of its Votiro business to Menlo Security, which was announced in February 2025. The transaction proceeds are to be received in the form of 40% cash and 60% shares in Menlo, with part of the proceeds being deferred for up to 12 months. The first payment of cash was received in June 2025, and the first instalment of Menlo shares is expected in July 2025. Senetas noted that the cash proceeds, plus its ongoing exposure to Menlo via the shares received, have the potential to deliver substantial value to Senetas shareholders in the future.

Senetas remains positive about a strong month of June to close out FY2025, and its longer-term engagements on technology projects such as autonomous vehicles and the AUKUS submarine industrial base pilot program have the potential for longer-term upside following further testing and successful trials.