Ava Risk Group Ltd. · ASX:AVA
Ava Risk — Investor Presentation (February 2024)
25 slides from Ava Risk's investor presentation, Feb 26, 2024
Slide 1: Global leader in smart security and sensing technologies
Global leader in smart security and sensing technologies H1 FY24 RESULTS AVA RISK GROUP 26 February 2024
Slide 2: Agenda
AGENDA 1 Introduction 2 H1 FY24 Performance Overview 3 H1 FY24 Financials 4 Strategy & Outlook 2
Slide 3: Introduction to AVA Risk Group
Introduction to AVA Risk Group
Slide 4: Established leadership team with global coverage
ESTABLISHED LEADERSHIP TEAM WITH GLOBAL COVERAGE Globally based team well versed in bringing technology solutions to the market 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
Slide 5: Global leader in risk management technologies
GLOBAL LEADER IN RISK MANAGEMENT TECHNOLOGIES Protecting high value assets and critical infrastructure in +70 countries DETECT ACCESS ILLUMINATE Fibre optic intrusion High security access Security and intruder detection systems control technology detection equipment • Perimeter intrusions • Access c
Slide 6: High-quality base of end users
HIGH-QUALITY BASE OF END USERS Trusted by some of the world’s most discerning security conscious customers SAMPLE OF END USER CUSTOMERS 6
Slide 7: Partner relationships expand market reach
PARTNER RELATIONSHIPS EXPAND MARKET REACH Strong network of OEM and distributor relationships worldwide SAMPLE OF SYSTEM INTEGRATORS / DISTRIBUTORS 7
Slide 8: H1 FY24 Performance Overview
H1 FY24 PERFORMANCE OVERVIEW Mal Maginnis
Slide 9: H1 FY24 Operational Highlights
H1 FY24 OPERATIONAL HIGHLIGHTS Record sales order intake of $19.7 million in H1, up 37% on prior year demonstrating the investment in our technology and enhanced commercial capability. Announced supply agreement with Telstra. The agreement was the culmination of extensive collaboration with Telstra
Slide 10: Strong sales order growth
STRONG SALES ORDER GROWTH Order intake in Q2 FY24 was $12m (annualised $40m+) • Strong record of growth in sales order intake (leading indicator of revenue) in recent years. Sales Orders Received (A$m) • Q2 FY24 sales order intake $12m - annualized order intake 20.0 run rate at $48m 18.0 16.0 • $8.9
Slide 11: Telstra contract demonstrates adjacent applications
TELSTRA CONTRACT DEMONSTRATES ADJACENT APPLICATIONS • As announced on 9 February 2024, Ava has signed a supply agreement with Telstra for the supply of its products from each of its operating segments. • The agreement followed successful product trials of Ava’s fibre sensing technology on Telstra’s
Slide 12: H1 FY24 Operating Performance
H1 FY24 OPERATING PERFORMANCE • EBITDA loss of $0.9m for H1 FY24 reflects lower than planned revenue primarily from the Detect segment in Q1. Detect improved significantly in Q2 for both revenue and order intake and is expected to perform strongly in H2. • Revenue growth of 4%. Strong Access revenue
Slide 13: H1 FY24 Financial Performance
H1 FY24 FINANCIAL PERFORMANCE Neville Joyce
Slide 14: Group Financial Summary
GROUP FINANCIAL SUMMARY Lower than anticipated Q1 Detect revenue has impacted EBITDA. H1 FY24 $Am H1 FY24 H1 FY23 Var Var Proforma • Subdued revenue in H1 FY24 driven by lower Detect revenue in Q1. Revenue 14.2 13.6 0.6 14.5 0.9 • Lower gross margin at a consolidated level due Gross Profit 8.7 9.1 (
Slide 15: Revenue profile by segment
REVENUE PROFILE BY SEGMENT Lower revenue in Detect offset by growth in Access but has negatively impacted consolidate gross margin Detect: • Lower revenue primarily in Q1 due to timing of sales Revenue by Segment (A$m) order intake. 10 -8% • Strong Q2 sales order intake leaves Detect well placed for
Slide 16: Group Cash Flow
GROUP CASH FLOW A$m • Unfavourable working capital movement due to reduced EBITDA attributable to lower Q1 Detect Working Capital Movement (1.1) revenue. Development / Capital Expenditure (1.4) • Development expenditure relates to development of the Aura platform in Detect ($0.8m), Dividends Paid (0
Slide 17: Group Balance Sheet
GROUP BALANCE SHEET 31 Dec 30 Jun $A’000 Movement 2023 2023 • Movement in cash per cash flow statement Cash and cash 1.8 5.5 (3.7) • Increased inventory due to Aura Ai-X equivalents Receivables 8.1 8.4 (0.3) demonstration units ($0.2m) and inventory on final dormakaba shipment held over to January I
Slide 18: Strategy & Outlook
STRATEGY & OUTLOOK Mal Maginnis
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 worldwide, providing Ava with both capital and recurring revenue income streams. Sold >40 units since Mar release – DETECT Australia, US, Poland, Chile. • Expand solutions to a
Slide 20: Well positioned for growth over next 3 years
WELL POSITIONED FOR GROWTH OVER NEXT 3 YEARS • Established customer base with long term recurring revenue potential Scalable • Efficient go to market strategies including trusted global distribution partners business model • Proven technologies that can be adapted to adjacent applications • Leverage
Slide 21: Clear path to deliver growth over the next 28 months
CLEAR PATH TO DELIVER GROWTH OVER THE NEXT 28 MONTHS • 3-year plan now aligned with FY (not CY) $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 all Core Revenue 30.2 3
Slide 22: 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 • H1 FY24 sales order intake up 37% • Defensible competitive position and investments • High gross margins – ci
Slide 23: Closing
CLOSING Mal Maginnis
Slide 24: Questions
QUESTIONS Investor enquiries: aabeyratne@citadelmagnus.com
Slide 25: Forward Looking Statements
FORWARD LOOKING STATEMENTS 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. Certain statements in this
Ava Risk Group — Investor Presentation (February 2024) on 6ix