Ava Risk Group Ltd. · ASX:AVA
Ava Risk — Shareholder Meeting (November 2017)
27 slides from Ava Risk's shareholder meeting presentation, Nov 1, 2017
Slide 1: ASX Announcement – Annual General Meeting Presentations
Future Fibre Technologies Ltd 10 Hartnett Close, Mulgrave Victoria 3170, Australia www.fftsecurity.com ABN 67 064 089 318 P +61 3 9590 3100 01 November 2017 ASX ANNOUNCEMENT – ANNUAL GENERAL MEETING PRESENTATIONS In accordance with the ASX Listing Rules, the Chairman and CEO addresses to the Annual
Slide 2: Chairman's Speech
Chairman’s Speech The world is witnessing a significant increase in the number of perimeter intrusions – whether it’s illegal access, terrorist assaults, infrastructure alterations or theft. As the number of intrusions increase, and organisations become more threat aware, demand for solutions to saf
Slide 3: EBITDA was a loss of $7.5 million, with NPAT a loss of $7.8 million
EBITDA was a loss of $7.5 million, with NPAT a loss of $7.8 million. Operating expenses of $14.6 million included: • Targeted sales headcount changes to address market presence • Continued research and development spending on new product development, and • Impairment of receivables primarily due to
Slide 4: Aura Ai intrusion detection performance and orders
deliver intrusion detection performance levels previously not available in the market. FFT has received widespread interest in Aura Ai’s intrusion detection capabilities from both existing and potential customers, as well as enquiries regarding adjacent market applications – namely mining services a
Slide 5: CEO's Speech
CEO’s Speech With lower than expected revenues in the second half of the 2017 financial year, FFT made some operational adjustments Q4 - including a realignment of the sales team. I am pleased to report today that we are starting to see the benefits of these changes. During FY2017, FFT continued to
Slide 6: FFT customers looking to benefit from latest generation technology
FFT customers looking to benefit from the Company’s latest generation technology. With a large install base globally, customers successfully running FFT solutions for several years are now reviewing and upgrading their security strategies. In FY2018, we will continue to promote the benefits of hardw
Slide 7: Future growth and outlook
future growth. To outline our progress in this area, Terry will shortly discuss FFT’s recent strategic investment in MaxSec Group Limited and the proposed merger between the two companies. In terms of Outlook, FFT is on track for profitable growth, building on the capabilities developed over the las
Slide 8: Chairman – Merger Presentation
Chairman – Merger Presentation On 24 August 2017, FFT announced that it had acquired 61,500,000 shares (or 13% of the issued capital) in ASX listed company MaxSec Group Limited (MaxSec) at an offer price of $0.03 per share. The investment was driven by a desire to leverage the clear market synergies
Slide 9: Merger rationale and security solutions
solutions, including mining, refineries, financial institutions, bullion traders, government and central banks. We believe combining these leading security businesses offers both FFT and MaxSec shareholders an exciting opportunity to participate in the growth of a business with expanded sales capabi
Slide 10: Annual General Meeting Wednesday 1 November 2017
Annual General Meeting Wednesday 1 November 2017 www.fftsecurity.com
Slide 11: Forward Looking Statements
Forward Looking Statements This presentation is given on behalf of Future Fibre Technologies Limited (FFT). 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 FFT. Certain stateme
Slide 12: Chairman's Introductory Remarks
Chairman’s Introductory Remarks
Slide 13: FY2017 Financial Results
FY2017 Financial Results • Revenue $12.9 million – down 10% on FY2016. • EBITDA loss $7.5 million. • NPAT loss $7.8 million. • Operating expenses of $14.6 million included: - targeted sales headcount changes - R&D spend on new product development, and - impairment of receivables. • Net cash position
Slide 14: Next generation technology
Next generation technology • Continued investment in design, development and production of next generation technology to create competitive advantage and future benefits. • Aura Ai launched Q3 FY2017. • Widespread interest in Aura Ai capabilities for high security perimeter applications and adjacent
Slide 15: CEO's Address
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Slide 16: Industry Vertical Update
Industry Vertical Update CHEMICAL, OIL, GAS & MINING pales ae me Tet) GOVERNMENT —| = TRANSPORTATION ae COMMERCIAL & RESIDENTIAL ! CORRECTION FACILITIES & BORDERS i a 2:
Slide 17: FY2018 Progress
FY2018 Progress • $8.5 million contracts secured for FY2018 to date, with $4.3 million invoiced in Q1 FY2018– up 87% on Q1 FY2017. • Primary Aura Ai investment complete, generating revenue growth, improved gross margins and reduced operating costs. • Q1 FY 2018 unaudited net profit of $0.6 million –
Slide 18: Growth Strategy Horizons
Growth Strategy | Horizons LEAD (FY19+) GROW (FY18) ESTABLISH (FY17) Lead in Perimeter, Pipeline and Network (Lead across verticals and geographies Grow recurring % of total revenues with next generation product Strengthen and enter new regions (Annual Maintenance Contracts, range and capabilities)
Slide 19: Outlook
Outlook • On track for profitable growth, building on the capabilities developed over the last financial year. • Substantial and well qualified pipeline of sales opportunities. • Widespread interest in Aura Ai platform for intrusion detection and adjacent markets. • Widest range of fibre optic intru
Slide 20: Proposed MaxSec Merger
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Slide 21: MaxSec Investment & Merger Offer
MaxSec Investment & Merger Offer • FFT secures strategic investment in MaxSec Group Limited (ASX: MSP) - securing a 13% stake (61,500,000 shares). • MaxSec Group Limited consists of BQT Solution for smart access control systems and AVA Global for secure international logistics. • FFT announces off-m
Slide 22: About BQT Solutions
About BQT Solutions • BQT’s secure, reliable smart reader and card systems, biometric solutions, electric locking and access control products utilised at over 3,500 sites in more than 50 countries. • A leader in high security access control technology used in some of the most high security, critical
Slide 23: About AVA Global
About AVA Global • AVA is a growing global provider of secure international logistics of high-risk valuables, precious metals and currency. • Fully insured (underwritten by Lloyds), door to door services, utilising a network of highly experienced Security companies, Freight forwarders, Airlines and
Slide 24: Merger Benefits
Merger Benefits FFT BQT AVA Business Wider sales network/geographic reach ✔✔ ✔✔ ✔ Ability to leverage existing relationships to expand ✔✔ ✔✔ ✔ into new markets Stronger and more strategic partnerships through ✔ ✔ ✔✔ broader security solutions offering Larger balance sheet ✔ ✔ ✔✔ Cost savings through
Slide 25: Shared Security Market Opportunities
Shared Security Market Opportunities Estimated Total Current Estimated Market Value Addressable Market** Perimeter Security (sensors) US$11bn (CAGR 13.6%)* US$1bn - $2bn Few key competitors Ave. Margin Range 60-65% Access Control Systems US$6.3bn (CAGR 12.2%)* US$0.6bn - $1.5bn Many key competitors
Slide 26: Next Steps
Next Steps • Bidder’s Statement and Target’s Statement will be issued on Friday November 3rd, and the Offer is expected to close one month later. • MaxSec Shareholders should review the Bidder’s Statement and Target’s Statement in their entirety and consider the Offer having regard to their own pers
Slide 27: Questions
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