Ava Risk Group Ltd. · ASX:AVA
Ava Risk — Investor Presentation (March 2024)
25 slides from Ava Risk's investor presentation, Mar 13, 2024
Slide 1: Global leader in smart security and sensing technologies
For personal use only Global leader in smart security and sensing technologies AVA RISK GROUP INVESTOR PRESENTATION MARCH 2024
Slide 2: Introduction to AVA Risk Group
For personal use only Introduction to AVA Risk Group
Slide 3: Established leadership team with global coverage
ESTABLISHED LEADERSHIP TEAM WITH GLOBAL COVERAGE 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
Slide 4: Global leader in risk management technologies
GLOBAL LEADER IN RISK MANAGEMENT TECHNOLOGIES Protecting high value assets and critical infrastructure in +70 countries For personal use only DETECT ACCESS ILLUMINATE Fibre optic intrusion High security access Security and intruder detection systems control technology detection equipment • Perimeter
Slide 5: High-quality base of end users
HIGH-QUALITY BASE OF END USERS Trusted by some of the world’s most discerning security conscious customers For personal use only SAMPLE OF END USER CUSTOMERS 5
Slide 6: Partner relationships expand market reach
PARTNER RELATIONSHIPS EXPAND MARKET REACH Strong network of OEM and distributor relationships worldwide For personal use only SAMPLE OF SYSTEM INTEGRATORS / DISTRIBUTORS 6
Slide 7: Strategy & Outlook
For personal use only STRATEGY & OUTLOOK Mal Maginnis
Slide 8: Strong growth catalysts
STRONG GROWTH CATALYSTS For personal use only • Record sales order intake of $19.7 million in H1, up 37% on prior year. SALES • $8.9m of sales back log as at 31 Dec 2023 underpinning strong H2 FY24 forecast. • Consistently strong gross margins of 61% to 63%. GROSS • Increasing Annual Recurring Reven
Slide 9: 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 worldwide, providing For personal use only Ava with both capital and recurring revenue income streams. Sold >40 units since Mar release – DETECT Australia, US, Poland, Chile. •
Slide 10: Clear path to deliver growth over the next months
CLEAR PATH TO DELIVER GROWTH OVER THE NEXT 28 MONTHS • 3-year plan now aligned with FY (not CY) For personal use only $m FY24 FY25 FY26 • Forecast H2 FY2024 revenue of $16m - $20m Low High Low High Low High dependant on timing of project fulfilment. • Leverage the existing drivers of growth across a
Slide 11: H1 FY24 Performance Overview
For personal use only H1 FY24 PERFORMANCE OVERVIEW Mal Maginnis
Slide 12: H1 FY24 operational highlights
H1 FY24 OPERATIONAL HIGHLIGHTS Record sales order intake of $19.7 million in H1, up 37% on prior year For personal use only demonstrating the investment in our technology and enhanced commercial capability. Announced supply agreement with Telstra. The agreement was the culmination of extensive colla
Slide 13: Strong sales order growth
STRONG SALES ORDER GROWTH Order intake in Q2 FY24 was $12m (annualised $40m+) For personal use only • Strong record of growth in sales order intake (leading indicator of revenue) in recent years. Sales Orders Received (A$m) • Q2 FY24 sales order intake $12m - annualized order intake 20.0 run rate at
Slide 14: Telstra contract demonstrates adjacent applications
TELSTRA CONTRACT DEMONSTRATES ADJACENT APPLICATIONS • As announced on 9 February 2024, Ava has signed a supply agreement with For personal use only Telstra for the supply of its products from each of its operating segments. • The agreement followed successful product trials of Ava’s fibre sensing te
Slide 15: Telstra contract DAS trials
TELSTRA CONTRACT DAS TRIALS • Monitoring of a 48km urban fibre network in metropolitan For personal use only Melbourne Trial objectives: • Traffic monitoring: vehicles, trams, trains • Pedestrian activity monitoring: pedestrian walking, crowd build up • Pit lid intrusion / lifting, cable tampering,
Slide 16: Telstra contract sub sea trials
TELSTRA CONTRACT SUB SEA TRIALS For personal use only Fibre Cable Disturbance • Handling fibre • Chain Drag Across Fibre • Anchor Drag Simulation • Anchor Drop 30m from Fibre Seismic Analysis • Indonesian Earthquake 25/05/23 • Indonesian Earthquake 29/08/23 16
Slide 17: UGL contract transport infrastructure applications
UGL CONTRACT TRANSPORT INFRASTRUCTURE APPLICATIONS For personal use only • Sydney Metro – western line fully automated • Over 40kms of fencing with multiple redundant controllers • Growth opportunities in unprotected sites already contracted • Independent third party trial for 3 months, completed in
Slide 18: Case study: North America nuclear power station
CASE STUDY: NORTH AMERICA NUCLEAR POWER STATION Ava Risk Group successfully completed trials, comparing legacy DAS technology For personal use only vs FFT’s Aura Ai-X: 1. Monitoring of a 4km outer perimeter fence with extremely challenging environmental conditions. • Legacy DAS product: 196 alarms V
Slide 19: Closing & Questions
For personal use only CLOSING & QUESTIONS Mal Maginnis
Slide 20: 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 • H1 FY24 sales order intake up 37% • Defensible competitive position and investments • H
Slide 21: Appendix: 1H FY24
For personal use only APPENDIX: 1H FY24 Mal Maginnis
Slide 22: H1 FY24 operating performance
H1 FY24 OPERATING PERFORMANCE • Over the past twelve months we have invested in our technology and For personal use only commercial capability. This upfront investment has impacted EBITDA in H1 FY24 but delivered improved sales order intake and large deal capability. There are one-off costs of aroun
Slide 23: Group financial summary
GROUP FINANCIAL SUMMARY H1 FY24 For personal use only $Am H1 FY24 H1 FY23 Var Var Proforma • Slightly lower gross margin at a consolidated level due to change in revenue mix – decline in Revenue 14.2 13.6 0.6 14.5 0.9 higher margin Detect revenue offset by Gross Profit 8.7 9.1 (0.4) 8.9 (0.2) increa
Slide 24: Group balance sheet
GROUP BALANCE SHEET For personal use only 31 Dec 30 Jun $A’000 Movement 2023 2023 • Increased inventory due to Aura Ai-X Cash and cash demonstration units ($0.2m) and inventory on 1.8 5.5 (3.7) equivalents final dormakaba shipment held over to January Receivables 8.1 8.4 (0.3) ($0.2m). Inventories 8
Slide 25: 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