Slide 1: AoFrio Analyst Briefing May 24, 2023
AoFrio Analyst Briefing May 24, 2023 Meeting Address Kia Ora and welcome to the Analyst Briefing for AoFrio Limited. My name is Greg Balla, and I am the CEO of the Company. P: + 64 9 477 4500 E: info@aofrio.com A: 78 Apollo Drive, Rosedale, Auckland 0632, New Zealand PO Box: 302-533 North Harbour, A
Slide 2: Safe Harbour
Please note the Safe Harbour on the screen. AoFrio Company Confidential ©2023 2
Slide 3: AoFrio is a technology company keeping food and drinks fresh
AoFrio is a technology company that helps its customers keep food and drinks fresh and safe at the point of sale. Our main customers today are global beverage brands like Coke, Pepsi, Heineken and they use our technology to manage their fleets of commercial bottle coolers. If you think of your corne
Slide 4: Key data about AoFrio and its market
On the screen now you can see some key data about us and our market today. Our IoT business for Branded Bottle Coolers started in 2016 and we now have 2 million devices connected to our IoT cloud platform. Our IoT business which is now approximately 50% of our revenue has been growing with a 5-year
Slide 5: Plans and aspirations for growth into adjacent markets
Our plans and aspirations see us continuing to grow in the branded bottle cooler market but also entering adjacent new markets with our IoT and motor solutions expanding our Serviceable Available Market from $300 million today to over $6B. We believe we can leverage our global footprint, current cha
Slide 6: Strategy to grow in current and adjacent markets
Today we are going to talk about our strategy to grow in our current market. The branded bottle cooler market and then after the product demonstration discuss the adjacent new markets Ice Cream & Food Service. AoFrio Company Confidential ©2023 6
Slide 7: Motors and IoT revenue and margin over time
Hello, I am David Burden In the past, we described our business as a motors and fans business and a IoT business. As we move forward, and evolve the business, Motors and our IoT products will be incorporated into our key vertical product segments. This graph represents our former way of reporting, i
Slide 8: Branded bottle coolers and fleet management
Branded Bottle coolers refer to large fleets of distributed bottlers coolers, usually owned by brands such as Coca-Cola, Pepsi, Heineken, etc. The fleet size can range from 10,000 coolers to greater than 100,000. Branded Bottle coolers are a merchandiser for the brand’s products, a way to attract cu
Slide 9: Branded bottle cooler market is competitive
The branded bottle cooler market is a very competitive market. It is very price sensitive and for most customers it is about the upfront cash cost as opposed to the total cost of ownership. Globally, the new build, branded bottle coolers serviceable available market is approximately $300m which tran
Slide 10: Full solution provider with four value pillars
accounting perspective is recognised over the life of the agreement usually 5, 10 or 15 years. Our IoT and motors bottle coolers solutions are in a rapidly developing market with emerging competition but high growth potential, where we are the market leader. AoFrio is well placed to keep winning in
Slide 11: Service and maintenance value pillar
• Support for asset loss prevention and recovery, reducing capex spending on new equipment. Service and Maintenance is important because: • Broken or poorly performing coolers greatly impacts product sales, affecting both the bottler and the retailer. • One of the sales inhibitors is Coolers serving
Slide 12: Customer types and proof-of-concept trials by country
We have two customer types within our Branded Bottle Coolers vertical, the brands themselves, usually operating a local bottler for the overarching brand, and Original Equipment Manufacturers who manufacture under their own brands. Here is a snapshot of the countries our current proof-of-concept tri
Slide 13: Customer proof of concept and data maturity stages
Most new customers require proof of concept to ensure that their internal systems and processes can extract the value that our solution brings to them. Our strategy for the market continually evolves, and our approach is regionalised. Most customers sit within our Base or Evolve offering. An example
Slide 14: Connected controllers and regional drivers
exciting opportunity, one we have started to address with our Network Pro, along with developing a connected controller. In Europe, power and sustainability are the most important drivers, while sustainability and low power consumption are not yet such important factors in the Americas. As the leadi
Slide 15: How we win in the Branded Bottle Cooler vertical
• As our insight’s platform evolves, increased ROI will deliver increased value to customers through new features and services, over time this platform will allow for the remote management of a distributed fleet and when customers can reduce service calls and control their fleet over the cloud, sign
Slide 16: Key strategies for branded bottle coolers
Next, we want to ensure that our customers completely control and manage their fleets remotely. This will be a quantum step in refrigeration asset management. So, in summary the key strategies to help us continue to grow in the branded bottle cooler market are. 1. Geographic expansion as we enter No
Slide 17: Breadth of hardware and software portfolio
We provide value to our customers through actionable insights enabled by the vast amount of data we collect. Our unique difference is the breadth of our product portfolio across both hardware and software. No one else provides an end-to-end solution for bottle coolers. This is across both retrofits
Slide 18: Coca Cola Argentina case study
To the right you can see our hardware that helps monitor, control, connect and operate coolers. This includes our Monitor, SCS controllers, Network Pro cellular gateway and our ECR motors and fanpacks. This hardware and control system means we can optimise an individual cooler. But then we can scale
Slide 19: Reducing equipment loss by 30%
Through the data we collect and its scalability we are able to provide constant passive surveillance across their whole fleet. Not only that, but we’re also able to provide rapid identification of equipment with unverified location. This has resulted in a 30% reduction of equipment loss which provid
Slide 20: Service and Maintenance
Service and Maintenance ▲ Example: Prioritising Service Callouts Avoiding sales losses due to equipment malfunction. ▲ 25% reduction in service calls, improving response times by 1 day ▲ AoFrio Company Confidential ©2023 With a large fleet of appliances around the region, service & maintenance is a
Slide 21: Maintenance detection and commercial performance
Through the data we collect our solution can detect and notify when maintenance is required. This is enabled due to our refrigeration expertise. The prioritised service request view enables asset managers to schedule the most important maintenance jobs first. This helps minimise asset downtime. We a
Slide 22: Cooler Productivity and Cooler Purity
Cooler Productivity • Identify and optimise placement of high and low performing coolers January February March April AoFrio Company Confidential ©2023 With the data that we collect, we can accurately provide a view of the utilisation of the coolers across our customer’s fleet. This enables them to
Slide 23: Storekeeper behavior: restocking and unplugging
We can detect this, therefore identifying which stores are a problem. Storekeeper Behavior: Restocking and Unplugging Unplugging at night: cooler connects every morning Sub-optimal restock time: midday just before heavy shopper traffic January February March April AoFrio Company Confidential ©2023 W
Slide 24: Energy and Sustainability
Energy and Sustainability The refrigeration sector accounts for 17% of Global Energy Consumption 17% Our ecosystem of products can deliver The (US) average commercial refrigerator real time system control, data and uses 17,000 kwh per insights to support: year - two times the average household. 17,0
Slide 25: New market opportunities in strategic plan
Hello everyone, I am Genevieve Dawick VP Product and I am here to discuss the new market opportunities in our strategic plan. You’ve heard a lot about our existing markets and core capability that we will continue to protect and grow. What I’d like to touch on now is our growth strategy for expansio
Slide 26: Ice cream segment and adjacent market goals
• Increase our margins, • Establish recurring revenue streams. • Diversify our customer base, • And provide long term growth potential. We have selected Ice Cream Brands as well as the Food Service and Retail space as our top priorities because we think they give us the best opportunity to leverage
Slide 27: Ice cream trials and faster time to market
• Use of our products in freezers has also introduced some new future product requirements. As mentioned, we already have some trials underway in this space, with an early minimum viable product (MVP) in market and a customer who has placed a significant order with us. While it has taken us seven ye
Slide 28: Food service and retail market opportunity
We have excluded large hypermarkets from this segment as their product needs are more complex and they are already served by large competitors. With a Serviceable Available market of $4.5B, this market presents us with an opportunity because: • We have existing products that require minimum modifica
Slide 29: Existing and new target segments combined
• Then we innovate to close those gaps locally and prove value on a small scale, before extending our solutions globally. • While there are some differences as we move up and down the temperature range from freezers to hot food, as well as across the distribution chain, having our product out there
Slide 30: AoFrio well placed to leverage IoT expertise
AoFrio is well placed to leverage its global footprint and its expertise in electronic hardware. cloud software technology and data insights to take advantage of a rapidly growing IoT market. Our IoT and refrigeration expertise is core to our business. Alongside protecting and growing our branded bo
Slide 31: Developing solutions for new markets
We have commenced developing solutions for the new markets leveraging our existing technology in the first instance. We have chosen to work with trial customers that are prepared to work with us to develop the next version of our solution. We look forward to updating you on key milestones as we ente
Slide 32: Thank you for your questions
Thank you for your questions, and once again for your attendance. We look forward to putting these plans into action and achieving great things at AoFrio. Have a great afternoon. END OF MEETING AoFrio Company Confidential ©2023 32