Ava Risk Group Ltd. · ASX:AVA
Ava Risk — FY2024 Earnings Presentation
28 slides from Ava Risk's earnings presentation, Aug 27, 2024
Slide 1: FY24 Results
For personal use only Global leader in smart security and sensing technologies FY24 RESULTS AVA RISK GROUP 27 AUGUST 2024
Slide 2: Introductions
For personal use only INTRODUCTIONS David Cronin
Slide 3: Corporate Snapshot
CORPORATE SNAPSHOT For personal use only Key Metrics Top 20 Holdings (as at 19 August 2024) BELL POTTER NOMINEES LTD <BB NOMINEES A/C> 31,950,717 11.04% Market capitalisation BNP PARIBAS NOMS PTY LTD 16,051,154 5.54% $30.4M (as at 19 August 2024) MR STEPHEN ROSS CAREW <BMS A/C> 13,000,000 4.49% HSBC
Slide 4: Agenda
AGENDA For personal use only 1 Strategy & Highlights 2 FY24 Performance Overview 3 Outlook 4
Slide 5: Strategy & Highlights
For personal use only STRATEGY & HIGHLIGHTS Mal Maginnis
Slide 6: FY24 Financial Highlights
FY24 FINANCIAL HIGHLIGHTS For personal use only • FY24 revenue in line with guidance, growth of 16% in H2 versus H1 Group sales Revenue / Income EBITDA1 • Excellent sales momentum, supported $35.3m $30.2m ($0.9)m by new product releases, sophisticated partners, and a growing quality Up 14% on pcp Up
Slide 7: Global Leader in Risk Management Technologies
GLOBAL LEADER IN RISK MANAGEMENT TECHNOLOGIES Protecting high value assets and critical infrastructure globally DETECT ILLUMINATE ACCESS For personal use only Fibre optic intrusion Security and intruder High security access detection systems detection equipment control technology • Access control re
Slide 8: Sensing Beyond Security
SENSING BEYOND SECURITY Building on success in existing deployments in multiple infrastructure types For personal use only USE OF SOLUTIONS FOR SENSING APPLICATIONS Example of solutions at a correctional facility • Identifying and responding to a threat at the perimeter, or within a facility. • Mana
Slide 9: Go to Market and Revenue Model
GO TO MARKET AND REVENUE MODEL PROVEN GO-TO-MARKET STRATEGIES WITH GLOBAL REACH For personal use only Products: DETECT ACCESS ILLUMINATE Project based revenue in Detect supporting system integrator solutions to end users. Key distributor relationships driving product sales in the Access and Illumina
Slide 10: Driving Growth in FY25 and Beyond
DRIVING GROWTH IN FY25 AND BEYOND Building on our market verticals and geographies with sophisticated global partners Detect Sales Opportunity Pipeline (A$m) For personal use only Proven technology • Aura Ai-X • Cobalt YD30 series development igh Prob bility • LoRa Connect wireless system • Growing
Slide 11: High Quality Partner and End User Base
HIGH QUALITY PARTNER AND END USER BASE Strong network of OEM and distributor relationships worldwide For personal use only 11
Slide 12: Case Study: Telstra Opportunities
CASE STUDY: TELSTRA OPPORTUNITIES For personal use only Opportunities: • Protection of data cabling via surface and subsea sensing • Intrusion events on major communication Towers • Access to critical assets • Pit lid intrusion / lifting, cable tampering, digging Protection of communication pits ✓ T
Slide 13: Case Study: Europe Border
CASE STUDY: EUROPE BORDER For personal use only Ava Risk Group successfully completed installation and support for a key Border between Poland – Russia and Poland – Belarus. • Monitoring of a 200km+ Border perimeter fence, buried with extremely challenging environmental conditions • New Aura AiX red
Slide 14: Case Study: Transport Infrastructure
CASE STUDY: TRANSPORT INFRASTRUCTURE For personal use only • Sydney Metro – western line fully automated • Over 40kms of fencing protected with Ava’s Aura Ai-X DAS sensors installed with new deep learning modules activated • Growth opportunities in unprotected sites already contracted • Independent
Slide 15: Clear Path to Deliver on Growth Plans in the Mid-Term
CLEAR PATH TO DELIVER ON GROWTH PLANS IN THE MID-TERM For personal use only • Revenue growth driven by pipeline conversion in FY24 Actual FY25 FY26 Detect and expansion in adjacent markets. $m H1 H2 Total Low High Low High • Leverage the existing drivers of growth across all Core Revenue 37.7 45.2 4
Slide 16: FY24 Performance Summary
For personal use only FY24 PERFORMANCE SUMMARY Mal Maginnis / Neville Joyce
Slide 17: FY24 Performance Highlights
FY24 PERFORMANCE HIGHLIGHTS For personal use only • Continued investment in our core • Positive EBITDA in H2 technologies and commercial demonstrating the scalable cost Sales order intake capability to drive growth: • Aura Ai-X – market leading base. Full year EBITDA loss of $0.9m reflecting investm
Slide 18: FY24 Performance Highlights: Sales Order Intake
FY24 PERFORMANCE HIGHLIGHTS FY24 sales order intake up 14%, sales order backlog of $8.5m to support FY25 revenue For personal use only • Growth in sales order intake to $35.3m, up 14% on the prior year. Sales Order Received (A$m) • Detect up 12% driven by strong demand for Aura 40 Ai-X, the Company’
Slide 19: Group Financial Summary
GROUP FINANCIAL SUMMARY For personal use only $Am H1 FY24 H2 FY24 FY24 FY23 Var • Revenue growth driven by stronger H2 in Revenue 14.2 16.0 30.2 28.6 1.6 Detect which has resulted in positive Gross Profit 8.7 9.4 18.1 18.2 (0.1) EBITDA in H2. Gross Margin 61% 59% 60% 64% -4% • Lower gross margin at
Slide 20: Revenue Profile by Segment and Type
REVENUE PROFILE BY SEGMENT AND TYPE Revenue by segment (A$m) For personal use only Detect: Access: Illuminate: 20.0 18.4 18.1 • Slightly lower revenue • Revenue growth of • Revenue growth of due to slow Q1. Detect 38% underpinned by 5%. 15.0 revenue growth of 32% dormakaba orders • Average gross in
Slide 21: Group Balance Sheet
GROUP BALANCE SHEET For personal use only $A’000 30 Jun 2024 30 Jun 2023 Movement • Movement in cash per cash flow statement. Cash and cash 5.1 5.5 (0.4) • Increase in receivables driven by timing equivalents Receivables 9.0 8.4 0.6 of Detect shipments in Q4, particularly UGL which will be invoiced
Slide 22: Group Cash Flow
GROUP CASH FLOW For personal use only A$m • Net proceeds of $4.1m via an Institutional Placement and Share Purchase Plan Working Capital Movement (0.2) conducted during H2. Development / Capital Expenditure (2.7) • Slight increase in working capital driven by Repayment of Borrowings (0.3) timing of
Slide 23: Outlook
For personal use only OUTLOOK Mal Maginnis
Slide 24: Strong Growth Catalysts in Each Segment
STRONG GROWTH CATALYSTS IN EACH SEGMENT For personal use only • Aura AI-X the solution of choice for the protection of critical DETECT infrastructure worldwide, providing Ava with both capital and recurring revenue income streams. Sold 100+ units since release – Australia, US, Poland, Chile. • Expan
Slide 25: 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 • FY24 sales order intake up 14% • Defensible competitive position and investments • High
Slide 26: Closing
For personal use only CLOSING Mal Maginnis
Slide 27: Questions
For personal use only QUESTIONS Investor enquiries: alexandra.abeyratne@sodali.com
Slide 28: 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