Ava Risk Group Ltd. · ASX:AVA
Ava Risk — H1 FY2023 Earnings Presentation
24 slides from Ava Risk's earnings presentation, Feb 24, 2023
Slide 1: Global leader in smart security and sensing technologies
For personal use only Global leader in smart security and sensing technologies 1H FY23 RESULTS AVA RISK GROUP 24 FEBRUARY 2023
Slide 2: Agenda
AGENDA For personal use only 1 1H FY23 Performance Overview 2 1H FY23 Financials 3 Strategy & Outlook 2
Slide 3: 1H FY23 Performance Overview
For personal use only 1H FY23 PERFORMANCE OVERVIEW Mal Maginnis
Slide 4: 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 5: 1H FY23 Operational Highlights
1H FY23 OPERATIONAL HIGHLIGHTS For personal use only • Acquisition of GJD in August 2022 to create the Illuminate segment. GJD is a UK based security technology supplier and provides a complimentary product, technology and geographic footprint. • Growth of 47% in sales order intake to $14.4m compare
Slide 6: 1H FY23 Sales Order Intake
1H FY23 SALES ORDER INTAKE For personal use only • Total sales order intake (leading indicator of Group 15.0 revenue) of $14.4m, up 47% on the prior year. 13.0 • Detect sales order intake of $9.3m, up 15% with 11.0 Sales Order Value (A$m) continued expansion in the North American energy 9.0 segment
Slide 7: 1H FY23 Financial Highlights
1H FY23 FINANCIAL HIGHLIGHTS For personal use only • Group revenue of $13.6m, growth of 50% on the prior year consistent with the growth from sales order intake. • EBITDA1 of $1.2m and expansion of EBITDA margins to 9% illustrating the leverage in the cost base as revenue grows. • Growth in both rev
Slide 8: H1 FY23 Performance
For personal use only H1 FY23 PERFORMANCE Neville Joyce
Slide 9: Group Financial Summary
GROUP FINANCIAL SUMMARY Strong revenue and earnings growth For personal use only $Am 1H FY23 1H FY221 Var Var % • H1 FY23 revenue growth of 50% driven Revenue 13.6 9.1 4.5 +50% by improved sales order intake and the addition of GJD. Gross Profit 9.1 6.0 3.1 +50% • Gross margins maintained at 66% - G
Slide 10: Significant growth across Detect and Access segments
SIGNIFICANT GROWTH ACROSS DETECT AND ACCESS SEGMENTS For personal use only Detect - A$m Access - A$m Illuminate - A$m 3.5 10 2.0 9 3.0 8 +17% 2.5 1.5 7 +16% 6 2.0 5 1.0 1.5 4 3 1.0 0.5 2 0.5 1 0.0 0.0 N/A 0 1H FY22 1HFY23 1H FY22 1HFY23 1H FY22 1HFY23 Revenue EBITDA Revenue EBITDA Revenue EBITDA • C
Slide 11: 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. • Targeted investment in business develo
Slide 12: Impact of GJD acquisition on the balance sheet
IMPACT OF GJD ACQUISITION ON THE BALANCE SHEET For personal use only A$m • Fair value of the purchase consideration is Fair Value of purchase consideration 7.5 a mix of cash ($4.5m) and Ava Group script ($3.0m). Opening Balance Sheet: • Assets acquired primarily relate to Fair Value of Assets acquir
Slide 13: Group Balance Sheet
GROUP BALANCE SHEET For personal use only Movement 31 Dec 30 Jun $A’000 GJD Acq excl GJD 2022 2022 acq • The balance sheet has been adjusted to Cash and cash remove the impact of the opening 7.1 15.2 0.0 (8.1) equivalents balances attributable to the GJD Receivables 7.8 4.7 1.6 1.5 acquisition to de
Slide 14: Group Cash Flow
GROUP CASH FLOW For personal use only A$m • Negative working capital movement due to increased receivables and inventory. Working Capital Movement (2.0) Higher receivables reflect the completion Development / Capital Expenditure (1.3) of a number of projects in December for which payment was receive
Slide 15: Outlook & Strategy
For personal use only OUTLOOK & STRATEGY Mal Maginnis
Slide 16: 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 17: 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 18: 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 19: Clear path to deliver growth over the next three years
CLEAR PATH TO DELIVER GROWTH OVER THE NEXT THREE YEARS For personal use only Revenue Range Gross Margin Op Cost Range EBITDA Margin • Leverage the existing drivers of growth across Base 60% - 65% $15m - $18m circa 9% all business segments: Year 1 $36m - $45m 60% - 65% $18m - $21m circa 14% • OEM / D
Slide 20: 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 21: Closing
For personal use only CLOSING Mal Maginnis
Slide 22: 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 23: Questions
For personal use only QUESTIONS Investor enquiries: aabeyratne@citadelmagnus.com
Slide 24: 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