Announcement PDF Global leader in smart security and sensing technologies FY25(F) Flash Report AVA RISK GROUP 15 July 2025 GLOBAL LEADER IN RISK MANAGEMENT TECHNOLOGIES Protecting high value assets and critical infrastructure globally DETECT ILLUMINATE ACCESS Fibre optic intrusion detection systems Security and intruder detection equipment High security access control technology • Perimeter intrusions • Telecommunication networks • Pipeline intrusion • Condition monitoring • Data network protection • Products, services and recurring revenue model • Outdoor security sensors • LoRa wireless system developed • Surveillance solutions • Video illuminators • Camera analytics • Off-the-shelf & custom products • • • • Access control readers High security locking Custom encryption Biometric solutions • Off-the-shelf & custom products. • Highly encrypted for security conscious end users. World-leading portfolio of complementary premium solutions and technologies Strong competitive position underpinned by Ava’s IP, OEM and distribution relationships, and wealth of data for machine learning Trusted by some of the world’s most discerning security conscious customers – commercial, industrial, military and government sectors Flexible commercial models with growing recurring revenues 2 SENSING BEYOND SECURITY Building on success in existing deployments in multiple infrastructure types USE OF SOLUTIONS FOR SENSING APPLICATIONS • Identifying and responding to a threat at the perimeter, or within a facility. • Managing personnel access to restricted areas. • Securing critical assets and buildings. Example of solutions at a correctional facility AVA RISK GROUP’S SOLUTIONS DETECT • Borders, Perimeters, Critical Infrastructure. • Data investigation on patterns of intrusion. • Data generation and analytics using existing fibre networks targeting telecommunications sector. ILLUMINATE • Supports Detect’s smaller physical sites, targeted customer designs, illuminate CCTV images, identifying activity. ACCESS • Protect key infrastructure assets and strengthen vulnerable access points. DETECT ILLUMINATE ACCESS 3 FY25(F) UNAUDITED FINANCIAL FLASH REPORT Meaningful progress in delivering on key growth metrics Revenue EBITDA1 Gross Margin $31.6m $2.0m 64% Up 5% on pcp Up $2.9m on pcp Up 4% on pcp • Revenue up 5% underpinned by improved Detect performance. • Increased Gross Margin with Detect revenue driving gross margin improvement. • Growing Recurring Revenue of $2.6m, up 30% compared to prior year. Sales Opportunity Pipeline >$88m Expected close dates in FY26 Sales backlog Cash $6.4m $5.4m Down from $8.5m in pcp Well-funded for growth 1. EBITDA is profit / (loss) after tax adjusted for depreciation and amortisation, impairment of goodwill, finance expense and foreign exchange movements 2. All numbers are management forecasts and are unaudited • EBITDA turnaround on reduced and scalable cost base, up $2.9m to positive $2.0m • Cash of $5.4m at 30 June 2025 supports business expansion 4 GROUP FINANCIAL SUMMARY Revenue growth and stable operating base driving positive EBITDA result $m FY2024 FY2025* Movement Total Revenue 30.2 31.6 1.4 Gross Profit 18.1 20.3 2.2 GM% 60% 64% 4% Opex 19.0 18.3 (0.7) EBITDA** (0.9) 2.0 2.9 * FY2025 is based on unaudited financial results ** EBITDA is profit before tax adjusted for depreciation and amortisation, impairment of goodwill, finance expense and foreign exchange movements • Moderate revenue growth of 5% driven by improved Detect performance which is up 15% compared to previous year • Improved gross margin of 64% within target range of 60%-64%: higher gross margin at consolidated level due to growth in higher-margin Detect revenue • Reduced and stable operating cost base following completion of organisation restructure, with decreased operating costs of $0.7m compared to the previous year. • Earnings inflection point following investment in technology and commercial capability; strong leverage potential as revenue builds. • Cash flow positive for the period with cash at bank 30 June 2025 of $5.4m ($5.0m in the prior year). 5 FY25(F) Revenue Bridge Previous revenue guidance for FY25 of $35 - $38 million • Expected revenue shortfall to the guidance provided on 30 April 2025 of $3.4m to $6.4m driven by: Sydney infrastructure project pending finalisation of some contractual arrangements between the prime contractor and its client $1.2 million Indian pipeline protection project impacted by a recent territorial conflict $1.5 million A number of U.S. based orders subject to tariff related delays in H2 FY2025. $1.2 million • Ava Risk Group has been selected on all of these projects and has passed all design and other critical milestones. • All orders are expected to be received and fulfilled in H1 FY26. 6 STRATEGY & OUTLOOK DRIVING GROWTH IN FY26 AND BEYOND Building on our market verticals and geographies with sophisticated global partners DETECT SALES OPPORTUNITY PIPELINE (A$M) Proven technology • Aura Ai-X • LoRa Connect wireless system • Cobalt YD30 series development • Growing recurring revenue via subscription Enhanced commercial capability with high profile, quality partners • Telstra • dormakaba • UGL • Other key partners • Siemens High Probability 13.9 In Progress 23.4 Early Stage 51.2 • Total Pipeline with expected close dates in FY26 remains greater than $85m (excludes telco sector orders) • Opportunities across key geographies – APAC, Americas, Europe and Middle East. • Growth in recurring revenue of 30% to $2.6m ARR under contract • 11 opportunities > $1m ($18m of the pipeline) • Sell subscription contract with every sale of Aura Ai-X • Pipeline excludes Access / Illuminate, expected to deliver revenue of $12m - $15m in FY26. 30% growth in annual recurring revenue: 8 HIGH QUALITY PARTNER AND END USER BASE Strong network of OEM and distributor relationships worldwide 9 STRONG GROWTH CATALYSTS IN EACH SEGMENT Developing sales pipeline in key industry verticals and growing recurring revenue base DETECT ACCESS ILLUMINATE • Aura AI-X: solution of choice for protection of critical infrastructure worldwide • Added three new platforms to support growth • Expanding solutions to adjacent applications and customers • Growing demand for the Cobalt 2 locks via dormakaba’s distribution network • Release new Bluetooth YG80 large lock • Major channel network growth using the quality of our distribution partners • Cross sell combined Illuminate and Detect solutions • LoRa achieving market position with Detect • Expand product sales in North America and Asia Pacific via established channels 10 STRONG GROWTH OUTLOOK LEVERAGES EXISTING COST BASE Substantial opportunity remain in core markets to drive growth throughout FY26 Drivers of growth in FY26: $m FY2024 FY2025* Movement Total Revenue 30.2 31.6 1.4 Gross Profit 18.1 20.3 2.2 GM% 60% 64% 4% Opex 19.0 18.3 (0.7) EBITDA** (0.9) 2.0 2.9 EBITDA Margin % -3% 6% 9% * FY2025 is based on unaudited financial results ** EBITDA is profit before tax adjusted for depreciation and amortisation, impairment of goodwill, finance expense and foreign exchange movements • Expected revenue growth of 20%+ in FY26 based on strong sales pipeline • Adjacency revenues slower to materialise due to reliance on partners but remain a growth opportunity • Gross margin expected to be maintained at around 64% • Operating cost base is stable – no more than 5% growth in operating expenses to deliver revenue growth in FY26 • EBITDA margin for FY26 expected to be in double digits • Cash flows and balance sheet provide funding to drive scalable global operation 11 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 • • • • FY25(F) revenue growth of 5% 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 20%+ in FY26 with operating leverage • 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 12 CORPORATE SNAPSHOT Key Metrics Top 20 Holdings (at 4 July 2025) Market capitalisation (as at 14 July 2025) $30.5M Share price (as at 14 July 2025) $0.105 Shares outstanding 290.5 million Top 20 Shareholders 52% Nam e Bell Potter Nominees Ltd BNP Paribas Noms Mr Stephen Ross Carew HSBC Custody Nominees Bannaby Investments Pty Dixson Trust Pty Limited Valwren Pty Limited Valwren Pty Limited Chag Pty Ltd Bfa Super Pty Ltd BNP Paribas Nominees Pty Ltd Mr David Malcolm South Mark Ian Tibbenham Govindarajaloo Narasimooloo Goldrush Fund Pty Ltd Bfa Super Pty Ltd Mr Athar Jameel Bhutto Cheryl Lee Tapanes Bannaby Investments Pty Ltd Mr Peter Langford Balance 31,950,717 16,029,624 15,000,000 13,459,338 9,948,859 9,032,306 6,000,000 6,000,000 5,930,769 4,612,850 4,379,478 4,250,000 3,800,000 3,180,027 3,000,000 3,000,000 2,677,777 2,600,000 2,560,244 2,339,598 % 11.0% 5.5% 5.2% 4.6% 3.4% 3.1% 2.1% 2.1% 2.0% 1.6% 1.5% 1.5% 1.3% 1.1% 1.0% 1.0% 0.9% 0.9% 0.9% 0.8% 13 QUESTIONS Investor enquiries: alexandra.abeyratne@sodali.com 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. 15