Ava Risk Group Ltd. · ASX:AVA
Ava Risk — Shareholder Meeting (October 2019)
35 slides from Ava Risk's shareholder meeting presentation, Oct 31, 2019
Slide 1: ASX Announcement – Annual General Meeting Presentations
For personal use only 31 October 2019 ASX ANNOUNCEMENT – ANNUAL GENERAL MEETING PRESENTATIONS In accordance with the ASX Listing Rules, the Chairman’s and CEO addresses and presentations to the Annual General Meeting (“AGM”), are appended. Kim Clark Company Secretary About Ava Group The Ava Group, c
Slide 2: Chairman's Speech
CHAIRMAN’S SPEECH On behalf of my fellow Directors, I would like to welcome you to the AVA Risk Group Limited (AVA Group) Annual For personal use only General Meeting and thank you for taking the time to join us here today. I am pleased to report that our Directors and their related parties hold aro
Slide 3: Chairman's Speech (continued)
Our access control and electronic locking products continue to attract interest, including from some of the world’s largest industry players, including Dormakaba who has taken on some of our products in a focused GTM roll out in the USA. For personal use only Through a combination of new business wi
Slide 4: Group CEO's Address
GROUP CEO’S ADDRESS It’s my pleasure this morning to be able to update you on our FY2019 results, and talk about the key activities that For personal use only the business is working on currently. I will also take the opportunity to update you on our areas of Strategic Focus for this year, before fi
Slide 5: Group CEO's Address: Financial Summary and Company Overview
• Technology Division gross margin was 66% • Services Division gross margin was 21% • FFT’s gross margin showed a YoY improvement from 65% to 67%, driven by higher margin contribution from the For personal use only new Aura Ai platform. • Operating expenses includes a full year of MaxSec business in
Slide 6: Group CEO's Address: Services Strategy and BQT Operations
• Our focus has been on increasing revenues whilst reducing fixed costs, to better align with a performance based renumeration structure. • We are now moving from being a supplier of choice, to now being an integral component in a customer’s secure For personal use only supply chain. • We have stren
Slide 7: India MoD Update – Tranche 1 Production
This new agreement is expected to be completed by the end of Q2 FY2020. For personal use only INDIA MOD UPDATE – TRANCHE 1 PRODUCTION NOW UNDERWAY Follow on purchase orders for the first tranche of 600 systems for the IMOD project have been received by Ava’s Technology Division from our in-country p
Slide 8: FY2020 Strategic Growth Focus
These new channel partners will provide Ava’s Technology Division with increased opportunities to win a greater share of local sales, as well as giving it an enhanced level of intimacy via these new partners with local System Integrators and End Users to win larger scale deals. For personal use only
Slide 9: Q1 FY2020 Highlights
Q1 FY2020 HIGHLIGHTS If we drill down into this a little more, you can see that: . For personal use only For Ava Group: • Revenue growth during the quarter exceeded guidance, with group revenues of $9.8m • This growth, along with operating efficiency strategies, delivered improved returns in Q1 FY20
Slide 10: Outlook and Closing Remarks
• After recently securing further customer contracts, the Services Division is well positioned for consistent growth in FY2020, For personal use only Technology Division: • Strong backlog of A$4.3m at the end of September to take in to Q2 & H2 FY2020. • New GTM sales strategy being implemented globa
Slide 11: Annual General Meeting – October 2019
For personal use only Annual General Meeting – 31 October 2019
Slide 12: Forward Looking Statements
Forward Looking Statements For personal use only This presentation is given on behalf of Ava Risk Group Limited (AVA) Information in this presentation is for general information purposes only, and is not an offer or invitation for subscription, purchase, or recommendation of securities in AVA. Certa
Slide 13: Chairman's Remarks – Mr David Cronin
Chairman’s Remarks – Mr David Cronin For personal use only
Slide 14: Group CEO's Address – Mr Scott Basham
Group CEO’s Address – Mr Scott Basham For personal use only
Slide 15: FY2019 Financial Summary - P&L
FY2019 Financial Summary - P&L For personal use only AUD$M FY2019 FY2018 • 116% increase in YoY revenues for the Services Sales Revenue 31.6 19.8 division (like for like full 12 months comparison). COGS (17.9) (8.8) • Overall group gross margin declined to 43% due to Gross Profit 13.7 11.0 expected
Slide 16: FY2019 Financial Summary - Balance Sheet
FY2019 Financial Summary - Balance Sheet For personal use only AUD$M 30 Jun 2019 30 Jun 2018 • No external debt or borrowings. Cash and cash equivalents 3.1 5.9 • Cash balance of $3.1 million at Receivables 5.0 5.3 30 June 2019. Inventories 4.5 4.6 • Sales orders backlog circa $6.0m at Intangibles 1
Slide 17: FY2019 Highlights
FY2019 Highlights Ava Group (Technology Division + Services Division): For personal use only • FY2019 revenues increased 59% to $31.6m • EBITDA* improved by 3% to a loss of $2.9m Technology Division (FFT + BQT): • Gross margin improved for FFT from 65% in FY2018 to 67% in FY2019 • FFT’s Aura Ai-2 sa
Slide 18: FY2019 Highlights – Services Division
FY2019 Highlights Services Division (Ava Global): For personal use only • Revenues increased by 116% to $16.1m • Gross margin was 20% in FY2018 compared to 21% in FY2019, reflective of changing product mix • EBITDA improved by $1.6m on a full year comparison basis • Addressable client spend increase
Slide 19: Company Overview
Company Overview For personal use only AVA Group is a diversified risk management technology and services company operating around the globe 36% 50% 14% Services division AVA Global Logistics FY2019 revenue contribution Future Fibre Technologies Technology division BQT Solutions
Slide 20: Major Organizations All Around the World Depend on AVA
Major Organizations All Around the World Depend on AVA For personal use only
Slide 21: Services Division – Ava Global Logistics
Services Division – Ava Global Logistics For personal use only • Ava Global Logistics is a growing global provider of secure international logistics of high-risk valuables, precious metals and currency. • Provides fully insured, door to door services, utilising a network of highly experienced securi
Slide 22: Technology Division – Future Fibre Technologies
Technology Division – Future Fibre Technologies • For personal use only FFT is a global leader in fibre optic intrusion detection systems, with a track record of delivering highly intelligent, reliable, and award-winning intrusion detection solutions for the protection of critical sites and infrastr
Slide 23: Technology Division – BQT Solutions
Technology Division – BQT Solutions For personal use only • BQT’s secure, reliable smart reader and card systems, biometric solutions, electric locking, and access control products are utilised at over 3,500 sites in more than 50 countries. • A leader in high security access control technology used
Slide 24: Services Division – Refined Strategy
Services Division – Refined Strategy • Focus on increasing revenues whilst reducing fixed costs For personal use only to better align with a performance based renumeration structure. • Moving from a supplier of choice to integral component in a customer’s secure supply chain. • Strengthened focus wi
Slide 25: BQT Production & Operations – New GTM Changes Now Implemented
BQT Production & Operations – NEW GTM Changes Now Implemented • During Q1 FY2020, the Technology Division relocated its BQT Solutions (BQT) business For personal use only unit’s production and manufacturing operations of all Access Control Readers and Cards, and Biometric Terminals to its BQT lockin
Slide 26: BQT Locking GTM Partnerships
BQT Locking GTM Partnerships • In FY2019, we commenced marketing our locking products in the USA with a major industry locking company. For personal use only Initial market feedback has been very positive resulting in several small, medium and large project opportunities to date. • All internal prod
Slide 27: India MoD Update – Tranche Production Now Underway
India MoD Update –Tranche 1 Production Now Underway • Follow on purchase orders for the first tranche of 600 systems for the IMOD project have been received by Ava’s For personal use only Technology Division from our in-country partner SFO. • This order equates ~25% of the total project and is value
Slide 28: Aura IQ Update
AURA IQ Update For personal use only Aura IQ Conveyor Health Monitoring The Technology Division successfully launched its new Aura IQ solution for conveyor belt health and assurance monitoring in Q1 FY2020. The first customer orders have been received, and installations are underway. There are curre
Slide 29: FY2020 Strategic Growth Focus
FY2020 Strategic Growth Focus No. Area of Growth For personal use only 1 Focus on new Go To Market strategy for Technology Division Sales & Service Distribution Channels to grow the sales revenues and supplement existing global support operations. 2 Focus on After Market Sales of Maintenance Support
Slide 30: Q1 FY2020 Financial Summary
Q1 FY2020 Financial Summary For personal use only AUD$M# Q1FY2019 Q1FY2018 % change YoY • Growing Revenues Sales Revenue 9.8 8.4 18% • Increasing Margins COGS 4.8 4.8 3% Gross Profit 5.0 3.6 37% • Reducing Costs GP margin (%) 51% 43% • Producing Profits Operating Expenses 3.7 4.2 -12% EBITDA* 1.2 (0
Slide 31: Q1 FY2020 Highlights
Q1 FY2020 Highlights For personal use only Ava Group (Technology Division + Services Division): • Q1 FY2020 revenues increased 18% to $9.8m compared to same time last year. • EBITDA* of $1.2m, an increase of approximately 335% year on year. • Cash at Bank was $3.6m, an increase of $0.5m since 30 Jun
Slide 32: Q1 FY2020 Highlights – Divisions
Q1 FY2020 Highlights For personal use only Technology Division (FFT + BQT): • Revenues of $5.5m in Q1 • EBITDA was $1.0m • Improving gross margins from 66% in FY2019 to 72% in Q1 FY2020 • Order backlog for technology products and services at 30 September 2019 of circa $4.3m Services Division (Ava Gl
Slide 33: FY2020 Outlook
FY2020 Outlook For personal use only Services Division: • Strong growth trajectory continues from 2H FY2019 into Q1 FY2020 where achieved EBITDA positive result. • Improving Gross Margins expected for FY2020 – was 20% in FY2018, to 21% in FY2019, and now currently 25% in Q1 FY2020, which is reflecti
Slide 34: FY2020 Outlook Summary – Technology Division
FY2020 Outlook Summary Technology Division: For personal use only • Strong backlog of A$4.3m at the end of September to take in to Q2 & H2 FY2020. • New GTM sales strategy being implemented globally. • New Aura IQ Conveyor Belt Health Monitoring Solution launched, first orders taken from A$300m addr
Slide 35: FY2020 Outlook Summary – Ava Group
FY2020 Outlook Summary For personal use only Ava Group: • Total revenue for Q2 FY2020 is forecast to be in excess of A$9.0m, with total revenue expected for H1 FY2020 to be more than A$19m (excluding contribution from IMOD). • With the Company’s growth and operating efficiency strategies now deliver