Ava Risk Group Ltd. · ASX:AVA
Ava Risk — Investor Presentation (February 2023)
42 slides from Ava Risk's investor presentation, Feb 1, 2023
Slide 1: Introduction to Ava Risk Group
For personal use only Global leader in smart security and sensing technologies INTRODUCTION TO AVA RISK GROUP FEBRUARY 2023
Slide 2: Agenda
AGENDA For personal use only 1 David Cronin – Introductions 2 Mal Maginnis – Strategic Objectives 3 Jim Katsifolis – Technology close up 4 Jim Viscardi – Business Development 5 Neville Joyce – Financial Update 2
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 Jim Katsifolis Group CEO Group CFO/Company Executive Vice President Head of Technology Secretary Global Security (based in Melbourne)
Slide 4: Corporate Snapshot
CORPORATE SNAPSHOT For personal use only Key Metrics Top 20 Holdings (as of 18 August 2022) Market capitalisation $54.9M (as at 24 January 2023) Share price $0.215 (as at 24 January 2023) Shares outstanding 255.3 million ASX listing May 11, 2015 More than A$46m has been distributed to shareholders v
Slide 5: Strategic Objectives
For personal use only STRATEGIC OBJECTIVES Mal Maginnis
Slide 6: We Are a Global Leader in Risk Management Technology
WE ARE A GLOBAL LEADER IN RISK MANAGEMENT TECHNOLOGY Sensing and access technology protecting high value assets and critical infrastructure worldwide For personal use only World-leading portfolio of complementary premium solutions and technologies • Detect - Fibre optic intrusion detection systems •
Slide 7: How We Protect Critical Infrastructure
HOW WE PROTECT CRITICAL INFRASTRUCTURE For personal use only Our technologies provide comprehensive solutions for security requirements Perimeter and long linear asset protection through the Detect detection and identification of intrusion events. Market leading locks and reader technology to restri
Slide 8: Well Positioned for Growth Over Next Years
WELL POSITIONED FOR GROWTH OVER NEXT 3 YEARS For personal use only • 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 a
Slide 9: Scalable Business with Sustainable Margins
SCALABLE BUSINESS WITH SUSTAINABLE MARGINS Opportunity to drive growth across all channels, leveraging our IP and cost base For personal use only • Platform and pipeline in place to grow revenue to FY22 ($19m) vs Future Sales $70 - $100m over the next three years through: • multi-year services contr
Slide 10: Market Opportunity Driven by Global Industry Trends
MARKET OPPORTUNITY DRIVEN BY GLOBAL INDUSTRY TRENDS For personal use only • Global security concerns driving rapid adoption of high security technology Industry trends • Increased government spending on protecting critical infrastructure support long term growth • Global connectivity driving greater
Slide 11: Sensing Beyond Security
SENSING BEYOND SECURITY Building on success in existing deployments in multiple infrastructure types & across global smart cities For personal use only Buried Pipeline High security intrusion Perimeter access control • AI is critical to enhancing Detection and now intrusion readers and locking Conve
Slide 12: Key Focus Areas
KEY FOCUS AREAS For personal use only Customer Outcomes Delivering Revenues Expanding Technology Reach 12
Slide 13: Technology Overview
Slide divider For personal use only TECHNOLOGY OVERVIEW Jim Katsifolis
Slide 14: Evolution of World-Leading Technology Solutions
EVOLUTION OF WORLD-LEADING TECHNOLOGY SOLUTIONS For personal use only Hardware Software Artificial A Intelligence 14
Slide 15: Delivering World-Leading Technology Solutions
DELIVERING WORLD-LEADING TECHNOLOGY SOLUTIONS For personal use only • Proven technologies with deep competitive advantages: • Aura Ai platform uses the latest advanced optical designs and signal processing algorithms • Extends application fit into adjacent markets including condition monitoring (con
Slide 16: Real World Probability of Detection vs Nuisance Alarm Rate Challenge
REAL WORLD – PROBABILITY OF DETECTION (POD) VS NUISANCE ALARM RATE CHALLENGE For personal use only Smart algorithms: High POD & Low NAR • Probability of Detection (POD) Sensitivity POD Nuisance Alarms • Percentage probability that a “threat event” will be detected • Nuisance Alarm Rate (NAR) • The n
Slide 17: Deep Learning – Highest POD with Lowest NAR
DEEP LEARNING – HIGHEST POD WITH LOWEST NAR For personal use only The Ideal POD/NAR Balance Sensitivity POD Nuisance Alarms • The ideal system would maintain the highest possible POD and the lowest possible NAR • The high event classification accuracy of Deep Learning enables optimal balance between
Slide 18: Deep Learning Solution
DEEP LEARNING SOLUTION For personal use only FFT Aura Ai-X platform • FFT has developed a Deep Learning solution for -X its Aura distributed fibre sensing platform Data Classification • Supported by a rich, application–focused discreet Library Updates data library FFT Data Library • FFT’s Deep Learn
Slide 19: FFT Aura Ai-X Case Study #1
FFT AURA AI-X CASE STUDY #1 For personal use only Location: Seaport in the Middle East Standard Signal Processing Application: High security fence Intrusion Nuisance Total Fence Perimeter: 32 km/20 mi Detections POD Tests Alarms Environment: Strong winds (speed >60km/hr) 229 185 80.8% 17 Customer Re
Slide 20: FFT Aura Ai-X Case Study #2
FFT AURA AI-X CASE STUDY #2 For personal use only Location: Oil refinery in North America Standard Signal Processing Application: High security fence Intrusion Nuisance Total Fence Perimeter: 4.5 km/2.8 mi Detections POD Tests Alarms Environment: Strong winds and rain 3876 (storm Customer Requiremen
Slide 21: Business Development
For personal use only BUSINESS DEVELOPMENT Jim Viscardi
Slide 22: Complimentary Mix of Revenue Streams & Margins
COMPLIMENTARY MIX OF REVENUE STREAMS & MARGINS For personal use only 2,500+ Partners in Systems 3,500+ Sites UK , Europe, Deployed US $1+bn $1+bn $1+bn 65-75% Gross Margin DETECT Addressable 45-55% Gross Margin ACCESS Addressable 45-55% Gross Margin ILLUMINATE Addressable Market Market Market Produc
Slide 23: Proven Go-to-Market Strategies
PROVEN GO-TO-MARKET STRATEGIES Diversified, low-risk and scalable global model, leveraging market-leading relationships For personal use only SUPPORT PRODUCTS OEM1 What Ava provides OFF THE SHELF LICENCING SOLUTIONS / PRODUCTS PRODUCTS Others in ecosystem SYSTEM INTEGRATORS | DISTRIBUTORS | MANUFACT
Slide 24: High-Quality Base of End Users
HIGH-QUALITY BASE OF END USERS For personal use only SAMPLE OF END USER CUSTOMERS 24
Slide 25: Partner Relationships Expand Market Reach
PARTNER RELATIONSHIPS EXPAND MARKET REACH For personal use only SAMPLE OF SYSTEM INTEGRATORS / DISTRIBUTORS 25
Slide 26: Business Development Expansion Plans
BUSINESS DEVELOPMENT EXPANSION PLANS For personal use only FY22 – raise the commercial PEOPLE acumen and capabilities for the Americas commercial group FY23 – expand to global sales team PRODUCT PROCESS 26
Slide 27: Case Study – North American Nuclear Energy Plant
CASE STUDY – NORTH AMERICAN NUCLEAR ENERGY PLANT For personal use only • June 2022 – Supply and installation of fibre optic PIDS • Upgrade from competitor’s technology • Key factors: detection performance, reliability and flexible integration • Two site expansions since June, with more scheduled in
Slide 28: Australian Department of Defence
AUSTRALIAN For personal use only DEPARTMENT OF DEFENCE • Customer for 8+ years • Provision of access readers to DoD sites across Australia • Over 50,000 access readers • Encryption at an affordable price • Ongoing upgrades
Slide 29: Case Study – TNT Worldwide
CASE STUDY – TNT WORLDWIDE For personal use only • Astrata – logistics and supply chain optimization • Deployed onTNT Worldwide Express containers across Asia • GPS-connected for monitoring and remote activation 29
Slide 30: Case Study – Tupras Izmir Refinery, Turkey
For personal use only CASE STUDY – TUPRAS IZMIR REFINERY, TURKEY • Large, critical refinery in Turkey • Using FFT fibre optic PIDS since 2015 • Chose FFT after four other PIDS technologies failed
Slide 31: Case Study – Livingston County Jail
CASE STUDY – For personal use only LIVINGSTON COUNTY JAIL • American correctional facility with 180+ BioXK biometric readers • 1, 2 or 3-factor identification • “Bio on card” - no user biometric data stored on the device or in the access control system
Slide 32: Case Study – Sydney Zoo
For personal use only CASE STUDY – SYDNEY ZOO • Elephant enclosure at Sydney Zoo • 15-foot-tall steel gates • Strength and status feedback capabilities 32
Slide 33: Case Study – Elera Renewable, Brazil
CASE STUDY – ELERA For personal use only RENEWABLE, BRAZIL • 13 km solar farm requiring low maintenance, buried PIDS solution • Geo-location integration with camera system • Low cost of ownership with no power in field 33
Slide 34: Case Study – Government Customer in Singapore
For personal use only CASE STUDY – GOVERNMENT CUSTOMER IN SINGAPORE • 60 government sites across Singapore • Integration of fibre optic detection system (Detect) with laser-based surveillance product (Illuminate) to provide a comprehensive perimeter intrusion detection system 34
Slide 35: Preliminary H1 FY2023 Performance
For personal use only PRELIMINARY H1 FY2023 PERFORMANCE Neville Joyce
Slide 36: Acceleration in Revenue Growth in H1 FY23
ACCELERATION IN REVENUE GROWTH IN H1 FY23 Growth of 50% on the prior year For personal use only $Am H1 FY21 H2 FY21 H1 FY22 H2 FY22 H1 FY23 • H1 FY23 revenue growth of 50% compared to the prior year, accelerating Revenue1 8.4 8.6 9.1 9.9 13.6 with the addition of GJD and growth in sales order intake
Slide 37: H1 FY23 Sales Order Intake and Revenue Outlook
H1 FY23 SALES ORDER INTAKE AND REVENUE OUTLOOK For personal use only • Sales order intake a leading indicator. Sales Orders Received (A$m) • Total sales order intake of $14.4m in H1. • Strong H1 sales performance - order intake up 47% 8.0 on the prior year. 7.0 • First orders for Aura IQ received du
Slide 38: Global Revenue Footprint
GLOBAL REVENUE FOOTPRINT Growth in the US supported by increased capability, expansion in Europe following acquisition of GJD For personal use only • H1 FY23 revenue evenly dispersed across the H1 FY23 Revenue by Geography key geographies in which we operate. • We have invested in business developme
Slide 39: Closing
For personal use only CLOSING Mal Maginnis
Slide 40: Compelling Case for Investment
COMPELLING CASE FOR INVESTMENT Leading technology with scalable model and organisational capability to support growth plans For personal use only TRACK RECORD OF GROWTH AND RESULTS STRONG COMPETITIVE ADVANTAGES • High gross margins – circa 65% and scalable • Defensible competitive position and inves
Slide 41: Questions
For personal use only QUESTIONS Investor enquiries: aabeyratne@citadelmagnus.com
Slide 42: 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
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