Ava Risk Group Ltd. · ASX:AVA
Ava Risk — H1 FY2022 Earnings Presentation
25 slides from Ava Risk's earnings presentation, Feb 25, 2022
Slide 1: Global leader in smart security and sensing technologies - 1H FY22 Results
For personal use only Global leader in smart security and sensing technologies 1H FY22 RESULTS 25 FEBRUARY 2022 PRESENTERS David Cronin, Chair Rob Broomfield, CEO Neville Joyce, CFO
Slide 2: Agenda
AGENDA For personal use only 1 1H FY22 Performance Overview 2 1H FY22 Financials 3 Strategy & Outlook 1H FY22 RESULTS 2
Slide 3: Global leader in risk management technology
GLOBAL LEADER IN RISK MANAGEMENT TECHNOLOGY Protecting high value assets and critical infrastructure in 70 countries For personal use only Fibre optic intrusion High security access detection systems control technology • access control • perimeter intrusions readers • pipeline intrusion • high secur
Slide 4: High-quality customer base
HIGH-QUALITY CUSTOMER BASE For personal use only SYSTEM INTEGRATORS / DISTRIBUTORS END USERS 1H FY22 RESULTS 4
Slide 5: Partner relationships expand market reach
PARTNER RELATIONSHIPS EXPAND MARKET REACH For personal use only DISTRIBUTORS END USERS 1H FY22 RESULTS 5
Slide 6: 1H FY22 Operational Highlights
1H FY22 OPERATIONAL HIGHLIGHTS For personal use only • Successful divestment of the Services Division in October 2021, delivering cash proceeds of $41.9m • Growth of 42% in sales order intake for the Technology Division compared to the prior year • dormakaba global framework agreement signed in Dece
Slide 7: 1H FY22 Operational Highlights
1H FY22 OPERATIONAL HIGHLIGHTS For personal use only • FFT’s Aura AI is monitoring the first European submarine power cable for an offshore wind farm, building on the success in two submarine cable projects in North America • Maintenance agreements signed for an additional 31 systems, with current o
Slide 8: 1H FY22 Financial Highlights
1H FY22 FINANCIAL HIGHLIGHTS For personal use only • Group revenue of $20.2m and EBITDA of $2.2m, in line with guidance • Revenue/EBITDA reflect the divestment of the Services Division ($7.3m/$1.8m) and delays in revenue from Indian Ministry of Defence (IMoD) contract ($7.7m/$7.7m) • Revenue from Te
Slide 9: Technology Division Sales Orders
TECHNOLOGY DIVISION SALES ORDERS Sales orders showing strong momentum for FFT; uplift in BQT post lockdowns For personal use only • Total sales order intake of $10.2m during Sales Orders Received (A$m) 1H FY22, 42% growth pcp (excluding 6.0 IMoD) 5.0 • Strong momentum in FFT with a significant uplif
Slide 10: 1H FY22 Financials
For personal use only 1H FY22 FINANCIALS
Slide 11: Group Financial Summary
GROUP FINANCIAL SUMMARY Group revenue and EBITDA in line with guidance provided in October 2021 For personal use only $Am 1H FY22 1H FY21 Var Var % • Profit after tax of $32.9m driven by the Revenue1 20.2 35.2 (15.0) -43% gain on the divestment of the Services Division ($31.9m). COGS (11.1) (15.0) 3
Slide 12: Underlying Revenue and EBITDA Movements
UNDERLYING REVENUE AND EBITDA MOVEMENTS Comparisons to the prior year are distorted by the divestment of the Services Division and IMoD For personal use only Revenue Movement (A$m) 35.2 (7.3) • The revenue movement between 1H FY21 (7.7) and 1H FY22 is driven entirely by the divestment of the Service
Slide 13: Technology Division ex IMoD
TECHNOLOGY DIVISION EX IMoD Revenue growth against FY21 run rate reflects improved sales performance from FFT For personal use only $Am 1H FY22 ½ Avg FY21 Var Var % • ½ Avg FY21 represents the YTD run rate Revenue1 9.1 8.3 0.8 +9.6% of the full year FY21 Technology Division result. COGS (3.1) (2.9)
Slide 14: Continued Strong Cash Generation
CONTINUED STRONG CASH GENERATION Positive cash flow from operations coupled with proceeds from the divestment of Services Division For personal use only Cash Movement (A$m) • The business continues to generate 36.5 (0.9) positive cash flow from operations. (0.2) 55.4 • The proceeds from the divestme
Slide 15: Group Balance Sheet
GROUP BALANCE SHEET Strong balance sheet underpinned by cash position and no debt For personal use only $A’000 31 Dec 2021 31 Dec 2020 Var Cash and cash 55.4 13.4 42.0 • Balance sheet has benefited from $41.9m equivalents cash proceeds from divestment of Ava Receivables 3.8 8.9 (5.1) Global net of $
Slide 16: Return of Capital Update
RETURN OF CAPITAL UPDATE For personal use only The Company announced its plan to distribute Special dividend, unfranked, to be paid on 10 $39.2m of excess cash to shareholders as a March 2022 with a record date of 28 February capital return subject to a favourable class ruling 2022. from the ATO
Slide 17: Strategy & Outlook
For personal use only STRATEGY & OUTLOOK
Slide 18: Strong track record with unique global opportunity
STRONG TRACK RECORD WITH UNIQUE GLOBAL OPPORTUNITY For personal use only TRACK RECORD OF GROWTH AND RESULTS STRONG COMPETITIVE ADVANTAGES • High margins and ongoing cost discipline • Defensible competitive position and • Strong cash generation and surplus cash for investments in innovation including
Slide 19: Growth Initiatives
GROWTH INITIATIVES To be a global leader in actionable, intelligent data streams that protect and optimise critical assets For personal use only LEVERAGE GROW RECURRING LEVERAGE PARTNERSHIPS REVENUE SCALABLE MODEL • Leverage new global partnership • Expand the LatAm licence with dormakaba to distrib
Slide 20: Aura IQ: Conveyor Health Monitoring Solution
AURA IQ: CONVEYOR HEALTH MONITORING SOLUTION For personal use only • After successful POV trials on different mines of a global mine operator, the expected receipt of the initial order in December 2021 has been delayed by their Global Condition Monitoring group • FFT requested to integrate our prove
Slide 21: Aura IQ – Development Roadmap
AURA IQ – DEVELOPMENT ROADMAP For personal use only Today New Applications Extensions Customer Driven Enhancements Development Validation Research Mining 3 Algorithm Go to Market Aura IQ v1 Integration into Commercialisation Aura IQ v1.5 Aura IQ v2 Mine Situational Development Partnering Integration
Slide 22: Aura AI: Smart Cities of the Future
AURA AI: SMART CITIES OF THE FUTURE For personal use only Buried Pipeline High security intrusion Perimeter access control intrusion readers and locking Conveyor belt • Well-positioned to help cities monitor threats to monitoring multiple types of infrastructure above ground, under ground and under
Slide 23: Outlook
OUTLOOK For personal use only Strong uplift in orders with particular Building on LatAm licensing agreement, grow growth in the US, reflective of the long term contracts and recurring revenue additional investment in sales capability. from technology licencing agreements and multi-year support contr
Slide 24: Questions
For personal use only QUESTIONS
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