Ava Risk Group Ltd. · ASX:AVA
Ava Risk — H1 FY2020 Earnings Presentation
18 slides from Ava Risk's earnings presentation, Feb 25, 2020
Slide 1: Investor Presentation – 25 February 2020
Investor Presentation – 25 February 2020 For personal use only 1
Slide 2: 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 3: Company Overview
Company Overview For personal use only AVA Group is a diversified risk management technology and services company operating around the globe HY2020 Revenue Contribution 45% 45% Services division AVA Global Logistics 10% Future Fibre Technologies Technology division BQT Solutions 3
Slide 4: 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 5: 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 6: Technology Division – Future Fibre Technologies
Technology Division – Future Fibre Technologies • FFT is a global leader in fibre optic intrusion detection systems, with a track For personal use only record of delivering highly intelligent, reliable, and award-winning intrusion detection solutions for the protection of critical sites and infrastr
Slide 7: Major Organizations All Around the World Depend on AVA
Major Organizations All Around the World Depend on AVA For personal use only 7
Slide 8: H1 FY2020 Business Highlights
H1 FY2020 Business Highlights For personal use only Strong Revenue Gross Margin Operating Expenses Strong Order Growth Improvement Reduced Backlog • 23% growth in sales • Services Division • Better working • Technology Division revenue vs pcp maintained its GM at capital management Backlog of A$16.7
Slide 9: H1 FY2020 Financial Summary
H1 FY2020 Financial Summary For personal use only H1 H1 YoY % AUD$M# FY2020 FY2019 Change Sales Revenue 20.4 16.7 +23% • Increasing Revenues COGS 10.4 9.8 +7% Gross Profit 10.0 6.9 +45% • Increasing Margins GP Margin (%) 49% 41% +8% • Reducing Costs Operating Expenses 7.8 8.6 -10% EBITDA* 2.2 (1.7)
Slide 10: H1 FY2020 Financial Summary - Balance Sheet
H1 FY2020 Financial Summary - Balance Sheet AUD$M 31 Dec 2019 30 Jun 2019 For personal use only Cash and cash 3.1 3.1 equivalents Receivables 7.5 5.0 • No external debt or borrowings. Inventories 4.3 4.5 Intangibles 13.3 12.7 • Cash Balance of A$3.1m Other assets 1.1 1.2 Total assets 29.3 26.5 • Sal
Slide 11: H1 FY2020 Highlights
H1 FY2020 Highlights For personal use only Ava Group (Technology Division + Services Division): • H1 FY2020 revenues increased by 23% to A$20.4m compared to same time last year. • Gross margins improved by 8% to 49% compared to 41% for the same time last year. • EBITDA* of A$2.2m an increase of appr
Slide 12: H1 FY2020 Highlights
H1 FY2020 Highlights For personal use only Technology Division (FFT + BQT): • Record revenues of A$11.3m • EBITDA was A$1.8m • Gross margins improving from 70% in H1 FY2019 to 72% in H1 FY2020 • Significant order backlog for technology products and services at 31 December 2019 of circa A$16.7m Servi
Slide 13: Services Division Update
Services Division Update • Ava Global has recently been awarded preferred supplier status For personal use only with Moneycorp Bank Ltd, to provide secure logistics and cash processing services, to and from New York, USA. Moneycorp expects that volumes will increase significantly over the coming mon
Slide 14: Technology Division – BQT – New EU Master Distributor Agreement
Technology Division – BQT – New EU Master Distributor Agreement For personal use only • AVA’s BQT Solutions subsidiary has finalized negotiations for an expansion of it’s existing locking supply arrangements into Europe, with the signing of a new Master Distributor Agreement with a major global lock
Slide 15: Technology Division – BQT – YG80 Locking Update
Technology Division – BQT – YG80 Locking Update For personal use only • Sales of our award winning YG80 lock continue to increase, particularly in the US market through the distribution agreement with DormaKaba. • A major opportunity for Ava’s BQT Solutions to potentially supply ~100,000 units of ou
Slide 16: Technology Division – FFT – India MoD Tranche Update
Technology Division – FFT – India MoD Tranche 1 Update For personal use only The total contract value to Ava for this project is estimated at US$11.9m (A$18.0m). More than 400 of the first 600 units (~25% of project) have now been built by Ava’s in-country partner SFO: • The first 200 units passed F
Slide 17: Technology Division – FFT – AURA IQ Update
Technology Division – FFT – AURA IQ Update For personal use only The Technology Division launched its new Aura IQ conveyor belt health and assurance monitoring solution in Q1 FY2020. First customer orders have been received, and installations completed. Significant interest in Aura IQ continues to g
Slide 18: FY2020 Ava Group Outlook
FY2020 Ava Group Outlook Continued Strong Revenue Growth Forecast Following Record H1 FY2020 Performance. For personal use only Clear Earnings & Opportunity Pipeline Visibility for H2 FY2020 and FY2021. Core Business Operationally Stable & Consistently Delivering on Commitments. • Services Division