Corporate Presentation November 2017 All amounts in USD unless otherwise stated

Transcription

1 Corporate Presentation November 2017 All amounts in USD unless otherwise stated

2 Disclaimer Certain information and statements in this presentation, including all statements that are not historical facts, contain and constitute forward-looking information or forward-looking statements as defined under applicable securities laws (collectively, forward-looking statements ). Forward-looking statements normally contain words like believe, expect, anticipate, plan, intend, continue, estimate, may, will, should, ongoing, and similar expressions and, within this presentation include, without limitation, any statements (express or implied) respecting: Avigilon s mission, future plans, strategies, and objectives; projected growth, revenues, gross margin percentage and profitability; future trends, opportunities, and growth in Avigilon s industry; Avigilon s ability to maintain and enhance its competitive advantages within its industry and in certain markets; Avigilon s product and research and development plans; new product functionality and suitability; projected operating expenses, interest expenses and capital expenditures; the addition and retention of personnel; the maintenance and development of Avigilon s reseller network; increases to brand awareness and market penetration; strategies respecting intellectual property protection and licensing; and the expansion, development, and adequacy of Avigilon s real property facilities. Forward-looking statements are provided for the purpose of presenting information about management's current expectations and plans relating to the future and allowing investors and others to get a better understanding of our anticipated financial position, results of operations, and operating environment. You are cautioned that such information may not be appropriate for other purposes. Forward-looking statements are not guarantees of future performance, actions, or developments and are based on expectations, assumptions, and other factors that management currently believes are relevant, reasonable, and appropriate in the circumstances, including, without limitation, assumptions regarding Avigilon s business, products, financial position, and industry, as well as those assumptions discussed in detail in Avigilon s Annual Information Form dated February 28, 2017 (the AIF ) and most recent Management s Discussion and Analysis, each of which is available under Avigilon s profile on SEDAR at Although management believes that the forward-looking statements are reasonable, actual results could be substantially different due to the risks and uncertainties associated with and inherent to Avigilon s business, as more particularly described in the Risk Factors section of the AIF. Additional material risks and uncertainties applicable to the forward-looking statements set out herein include, but are not limited to, unforeseen events, developments or factors causing any of the aforesaid expectations, assumptions, and other factors ultimately being inaccurate or irrelevant. Although Avigilon has attempted to identify important factors that could cause actual actions, events, or results to differ materially from those contained in any forward-looking statement, there may be other factors that cause actions, events, or results not to be as anticipated, predicted, estimated, or intended. Many of the factors are beyond the control of Avigilon. Accordingly, you should not place undue reliance on forward-looking statements. Avigilon undertakes no obligation to reissue or update any forward-looking statements as a result of new information or events after the date hereof except as may be required by law. All forward-looking statements contained in this presentation are qualified by this cautionary statement. 2017, Avigilon Corporation. All rights reserved. AVIGILON, the AVIGILON logo, and TRUSTED SECURITY SOLUTIONS are trademarks of Avigilon Corporation. Other names or logos mentioned herein may be the trademarks of their respective owners. The absence of the symbols and in proximity to each trademark in this document or at all is not a disclaimer of ownership of the related trademark. * NON-IFRS MEASURES Management uses certain non-international Financial Reporting Standards ( IFRS ) measures that it believes are useful to investors in evaluating the performance and results of Avigilon. The term Adjusted EBITDA refers to earnings before deducting share-based payments, foreign exchange gain or loss, business acquisition-related costs, restructuring costs, non-recurring legal costs, non-recurring lease termination costs, depreciation, amortization, interest, and taxes. Management believes that Adjusted EBITDA is a useful measure as it provides an indication of the operational results of our business. Please refer to Avigilon s consolidated financial statements for the three and nine months ended September 30, 2017 and 2016 and the reconciliation table within the associated Management s Discussion and Analysis respecting the same period, which are available under Avigilon s profile on SEDAR at Adjusted EBITDA does not have a standardized meaning prescribed by IFRS and is not necessarily comparable to similar measures provided by other companies. Investors are cautioned that Adjusted EBITDA should not be construed as an alternative to operating income determined in accordance with IFRS as an indicator of Avigilon s financial performance or as a measure of its liquidity and cash flows. This presentation includes content supplied by IHS Markit ( IHS ); IHS Markit, Information based on IHS, Technology Group, Video Surveillance Intelligence Database, June 2017 and Access Control Intelligence Service, June The use of this content was authorized in advance by IHS. Any further use or redistribution of this content is strictly prohibited without written permission by IHS. All rights reserved. No representation or warranty, expressed or implied, is or will be made in relation to, and no responsibility or liability is or will be accepted by IHS as to or in relation to, the accuracy, reliability, or completeness of this information and IHS expressly disclaims any and all responsibility or liability for the accuracy, reliability and completeness of such information. Such information has been prepared as at a particular date and there is no obligation for IHS to update such information. Slide 2

3 Our Mission Be the world s most trusted security solutions company Slide 3

4 1 Trailing twelve month revenue of $390M At a Glance TSX: AVO Revenue CAGR of 71% 3 Trailing twelve month Adjusted EBITDA* of $71M Adjusted EBITDA* CAGR of 106% 5 Net working capital of $125M at September 30, 2017 All amounts in USD unless otherwise stated * Refer to Non-IFRS Measures set out on slide 2 hereof Slide 4

5 1 Strong management team 2 Proven strategy with profitable growth Highlights Large and growing market Market leading technology Differentiated end-to-end solutions Robust patent portfolio and royalty program Diversified customer base Slide 5

6 Security Needs are Everywhere STADIUMS HEALTH CARE CRITICAL INFRASTRUCTURE AIRPORTS LOGISTICS RETAIL BANKS COMMERCIAL CITY SURVEILLANCE CASINOS PUBLIC TRANSIT EDUCATION Slide 6

7 Video Surveillance Solutions Video analytics Video management software (VMS) Network video recorders (NVR) HD cameras (1MP to 30MP) Analog encoders Access control Slide 7

8 Large and Growing Market Global Video Surveillance and Electronic Access Control Market Drivers Public safety Asset protection Liability management Regulatory compliance $20B $26B 2017E 2021E Source: IHS Markit, 2017 Slide 8

9 The Video Surveillance Market is Evolving Analog Cameras DVR HD Cameras NVR HD Cameras (Avigilon 7K) Video Analytics (Avigilon Appearance Search) Real-Time Alerts/Access Control NVR Monitor Computer & Mobile Devices Computer & Mobile Devices Today Slide 9

10 Video Analytics are the Future Industry-leading Video Analytics Transforms video from reactive to proactive Intelligent self-learning security solutions Plug and play Examples Person and object identification Perimeter protection Face appearance search Behavior recognition Vehicle appearance search Automatic license plate recognition Slide 10

11 Patents & Royalties Patents protect our intellectual property Avigilon Patent License Program provides high margin recurring royalties 765 International Patent Assets Foundational video analytics patents Automated license plate recognition Access control Firmware upgrading Major Industry Licensees Include Bosch Pelco FLIR Sensormatic Hikvision Sony March Networks UDP Technology Slide 11

12 Global Organization Global Headquarters Vancouver, Canada US Headquarters Plano, USA Manufacturing Richmond, Canada Plano, USA Fulfilment Center Amsterdam, Netherlands Regional Offices USA Boston, MA Sterling, VA Europe Lisbon, Portugal Milan, Italy Asia Dubai, UAE Singapore Full-time Personnel 1,171 globally Global Sales Team Regional teams selling in >120 countries Global Reseller Network >2,000 active resellers End Users >100,000 globally Slide 12

13 Manufacturing Advantage 1 US and Canadian manufacturing facilities 2 High quality 3 Rapid, low cost prototyping 4 Quick and predictable delivery 5 Intellectual property protection Slide 13

14 Why Avigilon Wins High quality and performance Industry-leading video analytics Designed and manufactured in the USA and Canada Data and cyber security End-to-end solutions Superior customer service Loyal and differentiated sales channel Slide 14

15 Management Team Alexander Fernandes James Henderson Joel Schuster Mahesh Saptharishi Ric Leong Founder, Chief Executive Officer, and Chairman of the Board Mr. Fernandes founded Avigilon in 2004 and has grown Avigilon to become a global technology leader of trusted security solutions Prior to Avigilon, Mr. Fernandes founded and grew QImaging, a leading developer and manufacturer of high performance quantitative digital cameras and software for the scientific imaging and machine vision markets President and Chief Operating Officer Mr. Henderson is responsible for leading Avigilon's global operations while creating efficiencies across the business Prior to Avigilon, Mr. Henderson held several key roles for various technology companies, including overseeing both domestic and international business strategies and running global departments Chief Legal Officer, Senior Vice President, and Corporate Secretary Mr. Schuster heads the Legal department and oversees the company s legal and regulatory matters, as well as the Avigilon Patent License Program Prior to joining Avigilon, Mr. Schuster was Corporate Secretary and in-house counsel, managing the legal responsibilities for a group of public companies Chief Technology Officer, Senior Vice President Dr. Saptharishi has extensive experience in advanced video analytics, machine vision and artificial intelligence technologies specifically for the security industry Prior to joining Avigilon, Dr. Saptharishi founded VideoIQ Inc., a leading video analytics provider, which was acquired by Avigilon in January, 2014 Chief Financial Officer, Senior Vice President Mr. Leong oversees Avigilon s finance and accounting operations on a global basis, including public reporting, treasury, financial planning & analysis Prior to joining Avigilon, Mr. Leong served in several senior financial leadership positions, including Corporate Controller and Director of Business Planning at two large U.S.-listed public companies Slide 15

16 Rapid Revenue Growth $ Millions $ % CAGR $245.2 $287.6 $172.7 $100.3 $4.9 $14.9 $31.4 $ Year ended December 31 All amounts in USD unless otherwise stated Slide 16

17 Track Record of Profitability Adjusted EBITDA* $ Millions $ % CAGR $51.3 $48.9 $33.9 $12.7 $6.7 $0.4 $ Year ended December 31 All amounts in USD unless otherwise stated * Refer to Non-IFRS Measures set out on slide 2 hereof Slide 17

18 1 Strong management team 2 Proven strategy with profitable growth Summary Large and growing market Market leading technology Differentiated end-to-end solutions Robust patent portfolio and royalty program Diversified customer base Slide 18

19 Thank you. Slide 19