Ava Risk Group Ltd. · ASX:AVA
Ava Risk — Investor Presentation (March 2024)
25 slides from Ava Risk's investor presentation, Mar 15, 2024
Slide 1: Global leader in smart security and sensing technologies
For personal use only Global leader in smart security and sensing technologies AVA RISK GROUP INVESTOR PRESENTATION MARCH 2024
Slide 2: Introduction to AVA Risk Group
For personal use only Introduction to AVA Risk Group
Slide 3: Established leadership team with global coverage
ESTABLISHED LEADERSHIP TEAM WITH GLOBAL COVERAGE Globally based team well versed in bringing technology solutions to the market For personal use only Mal Maginnis Neville Joyce Jim Viscardi Dr. Rod Wilson Group CEO Group CFO/Company Executive Vice President Chief Technology Officer Secretary Global
Slide 4: Sensing beyond security
SENSING BEYOND SECURITY Buried Pipeline High security intrusion Perimeter access control For personal use only • DETECT – Borders, Perimeters, Critical intrusion readers and locking Infrastructure. Data investigation on patterns of intrusion • ILLUMINATE – Support DETECT, smaller physical sites, tar
Slide 5: Global leader in risk management technologies
GLOBAL LEADER IN RISK MANAGEMENT TECHNOLOGIES Protecting high value assets and critical infrastructure in +70 countries For personal use only DETECT ILLUMINATE ACCESS Fibre optic intrusion Security and intruder High security access detection systems detection equipment control technology • Perimeter
Slide 6: Partner relationships expand market reach
PARTNER RELATIONSHIPS EXPAND MARKET REACH Strong network of OEM and distributor relationships worldwide For personal use only SAMPLE OF SYSTEM INTEGRATORS / DISTRIBUTORS 6
Slide 7: High-quality base of end users
HIGH-QUALITY BASE OF END USERS Trusted by some of the world’s most discerning security conscious customers For personal use only SAMPLE OF END USER CUSTOMERS 7
Slide 8: Strategy & Outlook
For personal use only STRATEGY & OUTLOOK Mal Maginnis
Slide 9: Strong growth catalysts
STRONG GROWTH CATALYSTS • Record sales order intake of $19.7 million in H1, up 37% on prior year. For personal use only SALES • $8.9m of sales back log as at 31 Dec 2023 underpinning strong H2 FY24 forecast. • Consistently strong gross margins of 61% to 63%. GROSS • Increasing Annual Recurring Reven
Slide 10: Clear path to deliver growth over the next months
CLEAR PATH TO DELIVER GROWTH OVER THE NEXT 28 MONTHS • Forecast H2 FY2024 revenue of $16m - $20m For personal use only dependant on timing of project fulfilment. $m FY24 FY25 FY26 Low High Low High Low High • Leverage the existing drivers of growth across all business segments: Core Revenue 30.2 34.
Slide 11: H1 FY24 Performance Overview
For personal use only H1 FY24 PERFORMANCE OVERVIEW Mal Maginnis
Slide 12: H1 FY24 operational highlights
H1 FY24 OPERATIONAL HIGHLIGHTS Record sales order intake of $19.7 million in H1, up 37% on prior year For personal use only demonstrating the investment in our technology and enhanced commercial capability. Announced supply agreement with Telstra. The agreement was the culmination of extensive colla
Slide 13: Strong sales order growth
STRONG SALES ORDER GROWTH Order intake in Q2 FY24 was $12m (annualised $40m+) For personal use only • Strong record of growth in sales order intake (leading indicator of revenue) in recent years. Sales Orders Received (A$m) • Q2 FY24 sales order intake $12m - annualized order intake 20.0 run rate at
Slide 14: Telstra contract demonstrates adjacent applications
TELSTRA CONTRACT DEMONSTRATES ADJACENT APPLICATIONS • As announced on 9 February 2024, Ava has signed a supply agreement with For personal use only Telstra for the supply of its products from each of its operating segments. • The agreement followed successful product trials of Ava’s fibre sensing te
Slide 15: Telstra contract DAS trials
TELSTRA CONTRACT DAS TRIALS • Monitoring of a 48km urban fibre network in metropolitan For personal use only Melbourne Trial objectives: • Traffic monitoring: vehicles, trams, trains • Pedestrian activity monitoring: pedestrian walking, crowd build up • Pit lid intrusion / lifting, cable tampering,
Slide 16: UGL contract transport infrastructure applications
UGL CONTRACT TRANSPORT INFRASTRUCTURE APPLICATIONS For personal use only • Sydney Metro – western line fully automated • Over 40kms of fencing with multiple redundant controllers • Growth opportunities in unprotected sites already contracted • Independent third party trial for 3 months, completed in
Slide 17: Case study: North America nuclear power station
CASE STUDY: NORTH AMERICA NUCLEAR POWER STATION Ava Risk Group successfully completed trials, comparing legacy DAS technology For personal use only vs FFT’s Aura Ai-X: 1. Monitoring of a 4km outer perimeter fence with extremely challenging environmental conditions. • Legacy DAS product: 196 alarms V
Slide 18: Closing & Questions
For personal use only CLOSING & QUESTIONS Mal Maginnis
Slide 19: 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 For personal use only • H1 FY24 sales order intake up 37% • Defensible competitive position and investments • H
Slide 20: Appendix: 1H FY24
For personal use only APPENDIX: 1H FY24 Mal Maginnis
Slide 21: H1 FY24 operating performance
H1 FY24 OPERATING PERFORMANCE • Over the past twelve months we have invested in our technology and For personal use only commercial capability. This upfront investment has impacted EBITDA in H1 FY24 but delivered improved sales order intake and large deal capability. There are one-off costs of aroun
Slide 22: Group financial summary
GROUP FINANCIAL SUMMARY H1 FY24 For personal use only $Am H1 FY24 H1 FY23 Var Var Proforma • Slightly lower gross margin at a consolidated level due to change in revenue mix – decline in Revenue 14.2 13.6 0.6 14.5 0.9 higher margin Detect revenue offset by Gross Profit 8.7 9.1 (0.4) 8.9 (0.2) increa
Slide 23: Group balance sheet
GROUP BALANCE SHEET For personal use only 31 Dec 30 Jun $A’000 Movement 2023 2023 • Increased inventory due to Aura Ai-X Cash and cash demonstration units ($0.2m) and inventory on 1.8 5.5 (3.7) equivalents final dormakaba shipment held over to January Receivables 8.1 8.4 (0.3) ($0.2m). Inventories 8
Slide 24: Corporate snapshot
CORPORATE SNAPSHOT Key Metrics For personal use only Top 20 Holdings (as of 07 February 2024) Market capitalisation $41M (as at 12 March 2024) Share price $0.16 (as at 12 March 2024) Shares outstanding 256.1 million Top 20 56.4% More than A$46m has been distributed to shareholders via special divide
Slide 25: 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