Ava Risk Group Ltd. · ASX:AVA
Ava Risk — FY2023 Earnings Presentation
27 slides from Ava Risk's earnings presentation, Aug 28, 2023
Slide 1: Global leader in smart security and sensing technologies – FY23 Results
For personal use only Global leader in smart security and sensing technologies FY23 RESULTS AVA RISK GROUP 28 AUGUST 2023
Slide 2: Introductions
For personal use only Introductions David Cronin
Slide 3: Depth of Leadership Team
DEPTH OF LEADERSHIP TEAM Globally based team well versed in bringing technology solutions to the market For personal use only Mal Maginnis Neville Joyce Jim Viscardi Dr. Rod Wilson Group CEO Group CFO/Company Executive Vice President Chief Technology Officer Secretary Global Security +35 years of ex
Slide 4: Corporate Snapshot
CORPORATE SNAPSHOT Key Metrics For personal use only Top 20 Holdings (as of 02 August 2023) Hoklder Name Securities % Market capitalisation BELL POTTER NOMINEES LTD <BB NOMINEES A/C> 31,950,717 12.5% $52.4M (as at 25 August 2023) BNP PARIBAS NOMS PTY LTD <DRP> 16,064,982 6.3% MR STEPHEN ROSS CAREW <
Slide 5: Agenda
AGENDA For personal use only 1 FY23 Performance Overview 2 FY23 Financials 3 Strategy & Outlook 5
Slide 6: FY23 Performance Overview
For personal use only FY23 PERFORMANCE OVERVIEW Mal Maginnis
Slide 7: Global Leader in Risk Management Technologies
GLOBAL LEADER IN RISK MANAGEMENT TECHNOLOGIES Protecting high value assets and critical infrastructure in +70 countries ACCESS For personal use only DETECT ILLUMINATE Fibre optic sensing High security access Security and intruder systems used for control technology detection equipment detection and
Slide 8: FY23 Operational Highlights
FY23 OPERATIONAL HIGHLIGHTS Growth through focus and investment on customer facing capability • New CEO and a renewed focus and investment on • Continued expansion in key geographies and For personal use only customer facing sales and support capability industry verticals: (investment of additional
Slide 9: FY23 Operational Highlights
FY23 OPERATIONAL HIGHLIGHTS • Growth in sales orders to $30.9m, up 71% on the Sales Orders Received (A$m) For personal use only previous year, up 36% if the acquisition of GJD is excluded. 18.0 • Detect order intake of $20.7m, up 55% on the prior 16.0 year, including the first major order for Aura A
Slide 10: FY23 Financial Highlights
FY23 FINANCIAL HIGHLIGHTS Significant revenue growth delivering improved EBITDA performance • Revenue of $28.6m, up 54% on the prior year For personal use only consistent with the growth from sales order intake. • Underlying EBITDA of $2.0m, up 150% which excludes ‘one-off’ costs of $0.7 during FY23
Slide 11: FY23 Financial Performance
For personal use only FY23 FINANCIAL PERFORMANCE Neville Joyce
Slide 12: Group Financial Summary
GROUP FINANCIAL SUMMARY Expansion in EBITDA margins when ‘one-off’ costs are excluded $Am FY23 FY22 Var For personal use only • FY23 revenue growth of 54% driven by improved Revenue sales order intake in Detect and the addition of GJD. 28.6 19.0 9.6 continuing operations • Consolidated gross margins
Slide 13: Segment Growth from Detect and Illuminate
SEGMENT GROWTH FROM DETECT AND ILLUMINATE • Continued expansion in key geographies For personal use only and verticals 35 • Detect: First commercial orders for Aura IQ and first deployment of Aura AI-X Sales Order Value (A$m) 30 system, order growth in North America 25 and Europe 20 • Access: Signif
Slide 14: Global Revenue Footprint
GLOBAL REVENUE FOOTPRINT Growth in the US supported by increased capability, expansion in Europe following acquisition of GJD FY23 Revenue by Geography • Strong revenue growth in each of the key For personal use only geographies in which we operate – US, Europe and APAC. • Investment during FY23 to
Slide 15: Group Balance Sheet
GROUP BALANCE SHEET Strong balance sheet to support future growth Movement 30 Jun 30 Jun $A’000 GJD Acq excl GJD For personal use only 2023 2022 acq • The balance sheet has been adjusted to Cash and cash remove the impact of the opening 5.5 15.2 0.0 (9.7) equivalents balances attributable to the GJD
Slide 16: Group Cash Flow
GROUP CASH FLOW For personal use only A$m • Increase in working capital due to inventory increase to secure supply chain and pricing for Working Capital Movement (1.5) critical components and higher receivables Development / Capital Expenditure (2.4) associated with Q4 FY23 Detect revenue. Acquisiti
Slide 17: FY2024 Outlook and Focus
For personal use only FY2024 OUTLOOK AND FOCUS Mal Maginnis
Slide 18: Clear Path to Deliver Growth Over the Next Three Years
CLEAR PATH TO DELIVER GROWTH OVER THE NEXT THREE YEARS Revenue Range Gross Margin Op Cost Range EBITDA Margin • Leverage the existing drivers of growth: For personal use only Year 1 $36m - $45m 60% - 65% $18m - $21m circa 14% • OEM / Distribution channels Access and Illuminate. Year 2 $50m - $70m 60
Slide 19: Strong Growth Catalysts in Each Segment
STRONG GROWTH CATALYSTS IN EACH SEGMENT • Aura AI-X is the solution of choice for the protection of critical infrastructure For personal use only DETECT worldwide. • Expand solutions to new applications and customers. • Cobalt 2 full release with final certification in Q1 FY24. ACCESS • Major channe
Slide 20: Driving Growth – Technology Development
DRIVING GROWTH – TECHNOLOGY DEVELOPMENT Detect - AI Deep Learning Access - Cobalt 2 and YG80 Orca For personal use only - Cobalt 2 launched & fully certified - Aura AI-X Deep Learning - YG80 Orca Remote enabled certified - Product of Choice - Dormakaba first major sales Illuminate- LoRa D-Tect Ava G
Slide 21: Driving Growth – Global Geographic Reach
DRIVING GROWTH – GLOBAL GEOGRAPHIC REACH AMERICAS MENA Market & Customer Applications For personal use only Corrections Energy Border protection Critical Infrastructure ESSA APAC Integration Market Expansion Cross sell solutions expand into Europe Strong growth in Australia, India and Singapore 21
Slide 22: Driving Growth – Expanded Commercial Capability
DRIVING GROWTH – EXPANDED COMMERCIAL CAPABILITY • Restructured core team across all regions – successful recruitment For personal use only SALES of key resources. • Focus on customer network in each region. • Team bringing new clients and commercial networks. • Dedicated technology application team
Slide 23: Driving Growth – Focus and Priorities
DRIVING GROWTH – FOCUS AND PRIORITIES For personal use only Customer Outcomes Delivering Revenues Expanding Technology Reach 23
Slide 24: Closing
For personal use only CLOSING Mal Maginnis
Slide 25: Compelling Case for Investment
COMPELLING CASE FOR INVESTMENT Leading technology with scalable model and organisational capability to support growth plans TRACK RECORD OF GROWTH AND RESULTS STRONG COMPETITIVE ADVANTAGES For personal use only • FY23 sales order intake up 71% • Defensible competitive position and investments • High
Slide 26: Questions
For personal use only QUESTIONS Investor enquiries: aabeyratne@citadelmagnus.com
Slide 27: Forward Looking Statements
FORWARD LOOKING STATEMENTS For personal use only This presentation is given on behalf of Ava Risk Group Limited (AVA) Information in this presentation is for general information purposes only, and is not an offer or invitation for subscription, purchase, or recommendation of securities in AVA. Certa