Announcement PDF Global leader in smart security and sensing technologies AVA RISK GROUP HENSLOW DEFENCE & SECURITY CONFERENCE 30 May 2024 Introduction to Ava Risk Group SENSING BEYOND SECURITY Common challenges at defence facilities • • • • Identifying and responding to a threat at the perimeter. Identifying and responding to a threat within the facility. Managing personnel access to restricted areas. Securing critical assets and buildings. Ava Group Solutions • DETECT –Borders, Perimeters, Critical Infrastructure. Data investigation on patterns of intrusion. • ILLUMINATE – Support DETECT, smaller physical sites, targeted customer designs, illuminate CCTV images, Identify activity. • ACCESS – Protect key infrastructure assets, harden vulnerable access points. 3 GLOBAL LEADER IN RISK MANAGEMENT TECHNOLOGIES Protecting high value assets and critical infrastructure in +70 countries DETECT ILLUMINATE ACCESS Fibre optic intrusion detection systems Security and intruder detection equipment High security access control technology • Distributed Acoustic Sensing (DAS) • Perimeter intrusions • Pipeline intrusion • Data network protection • • • • Outdoor security sensors Surveillance solutions Video illuminators Camera analytics • • • • Access control readers High security locking Custom encryption Biometric solutions Trusted by some of the world’s most discerning security conscious customers 4 H1 FY24 OPERATIONAL HIGHLIGHTS Record sales order intake of $19.7 million in H1, up 37% on prior year demonstrating the investment in our technology and enhanced commercial capability. Announced supply agreement with Telstra. The agreement was the culmination of extensive collaboration with Telstra (during 2023), including successful product trials which deployed our fibre sensing technology on Telstra’s infrastructure. Significant stocking orders from dormakaba following successful completion of product certifications for the Cobalt series locks. Access order intake growth of 80% and revenue growth of 60% during H1. Positive market response to Aura Ai-X in the Detect segment, underpinning our success in large scale contract awards and growing the recurring revenue base. Continued growth in recurring revenue with $1.6 million ARR currently under contract for future services and upgrades. A further eight sites were signed to supporting services contracts during H1 FY24. 5 AUSTRALIAN DEPARTMENT OF DEFENCE • • • • • • Customer for 15+ years Supply of fibre perimeter intrusion sensors and access control readers to DoD sites across Australia Over 12 sites perimeters protected plus 50,000 access control readers Fibre DAS sensors and access-controlled encryption solutions Future programs based on resiliency and sovereignty Ideally placed to support the Northern bases with performance proven in harsh remote and challenging environments CASE STUDY - TELSTRA DAS TRIALS • Monitoring of a 48km urban fibre network in metropolitan Melbourne Trial objectives: • Traffic monitoring: vehicles, trams, trains • Pedestrian activity monitoring: pedestrian walking, crowd build up • Pit lid intrusion / lifting, cable tampering, digging Monitoring of 10km subsea fibre cables in the Port of Darwin Trial objectives: a. Protection of subsea cables (trawling, dredging, anchoring) b. Seismic measurement and recording c. Monitoring of oceanographic conditions Outcome: The trials demonstrated the superior ability of Aura Ai-X DAS technology in detecting events and providing appropriate classification and reporting. It provides a rich source of data to Telstra, and effectively turns their existing fibre network into sensors. • 7 CASE STUDY TRANSPORT INFRASTRUCTURE • Sydney Metro – western line fully automated • Over 40kms of fencing with DAS sensors with AI installed deep learning • Growth opportunities in unprotected sites already contracted • Independent third-party trial for 3 months, completed in 48 hours due to superior performance of Aura Ai-X. Low alarms very high detection was the key. • Infrastructure protection is the second material driver of growth in the Detect segment. We continue to work with multiple SIs in Australia and globally based on Aura Ai-X results. 8 CASE STUDY: NATIONAL ENERGY INFRASTRUCTURE Ava Risk Group successfully completed trials, comparing legacy DAS technology vs FFT’s Aura Ai-X: 1. Monitoring of a 14km outer perimeter fence with extremely challenging environmental conditions • • • Legacy DAS product: 196 alarms VS Aura Ai-X:17 alarms 91% improvement: The fence is currently operating at 96% POD and 0.4% NAR Customer upgrading the facility to Aura Ai-X later this calendar year Outcome: The trials demonstrated the superior ability of Aura Ai-X in providing appropriate classification, reporting and detection. For the customer, the value lies in its industry leading low NAR rate producing better accuracy and a system they can trust is reliable. 9 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 • • • • H1 FY24 sales order intake up 37% High gross margins – circa 60% - 65% Trusted by blue chip and government customers HIGHLY SCALABLE MODEL • • • Blue chip customer base and long-term recurring revenue potential • • Defensible competitive position and investments in innovation including AI and deep learning Experienced leadership team Customer-centric focus with customised, flexible, and scalable solutions GLOBAL OPPORTUNITY • Efficient, scalable go-to-market strategies which include key distributor partners • Target revenue growth of $70 - $100m over next three calendar years achieved with minimal cost increases • Well-placed to become a global leader in smart digitisation for security and asset protection, thousands of products installed in +70 countries Emerging global partnerships with large multinationals Existing global revenue base 10 CLOSING & QUESTIONS Mal Maginnis FORWARD LOOKING STATEMENTS 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. Certain statements in this document regarding the Company’s financial position, business strategy and objectives may contain forward-looking statements (rather than being based on historical or current facts). Any forward-looking statements are based on the current beliefs of the Company’s management as well as assumptions made by, and information currently available to, the Company’s management. Forward-looking statements are inherently uncertain and must be read accordingly. There can be no assurance that the underlying assumptions will prove to be valid. All data presented in this document reflects the current views of the Company with respect to future events. Forward-looking statements are subject to risks, uncertainties and assumptions relating to the operations, results of operations, growth strategy and liquidity of the Company. To the maximum extent permitted by law, the Company, its officers, employees and agents do not assume any obligation to release any updates or revisions to the information (including any forward-looking statements) in this presentation to reflect any change to expectations or assumptions and disclaim all responsibility and liability for any loss arising from reliance on this presentation or its content. 12