Avigilon Corporate Presentation

investorsavigilon 776 views 26 slides Sep 07, 2016
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About This Presentation

August 2016


Slide Content

© 2016, Avigilon Corporation. All rights reserved. No license is granted with respect to any
copyright, industrial design, trademark, patent or other IP rights of Avigilon or its licensors.
Corporate Presentation | August 2016
All amounts in US$ unless otherwise stated

© 2016, Avigilon Corporation. All rights reserved. No license is granted with respect to any
copyright, industrial design, trademark, patent or other IP rights of Avigilon or its licensors.
August 2016 | page 2
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, strategies, and objectives; projected
growth, revenues (including the annual run rate goal), expenses, capital expenditures, and earnings; trends, opportunities, growth (including proj ected growth of the global video surveillance and access
control market), and Avigilon’s competitive advantages within its industry; Avigilon’s plans to consider acquisitions; Avigilon’s product and research and development plans; product functionality, suitability,
and performance; potential cost reductions; the addition and retention of personnel; the expansion of Avigilon’s sales reach;increases to brand and market penetration; strategies respecting intellectual
property protection; the strength and projected growth of Avigilon’s intellectual property portfolio; the outlook for and strategies respecting the Avigilon Patent Licensing Program; and the expansion,
development, and adequacy of Avigilon’s manufacturing and other real property facilities. Forward-looking statements, are provided for the purpose of presenting in formation 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 . The material expectations, assumptions, and other factors used in
developing the forward-looking statements set out herein include or relate to the following, without limitation: assumptions regarding Avigilon’s business, products, financial position, and industry; and those
assumptions discussed in detail in Avigilon’s Annual Information Form dated March 1, 2016 (the “AIF”) and most recent Management’s Discussion and Analysis, each of which is available under Avigilon’s
profile on SEDAR at
www.sedar.com. 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 resultstodiffer 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. Also, many of the factors are beyond the control of Avigilon. Accordingly, readers should not
place undue reliance on forward-looking statements. Avigilon undertakes no obligation to reissue or update any forward-looking s tatements 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.
© 2016, Avigilon Corporation. All rights reserved. AVIGILON, the AVIGILON logo, HIGH DEFINITION STREAM MANAGEMENT (HDSM), and TRUSTED SECURITY SOLUTIONS are trademarks of Avigilon
Corporation. Other product names mentioned herein may be the trademarks of their respective owners. The absence of the symbols ™and ® in proximity to each trademark in this document is not a
disclaimer of ownership of the related trademark. Avigilon Corporation protects its innovations with patents issued in the Unite d States of America and other jurisdictions worldwide:
www.avigilon.com/patents. Unless stated explicitly and in writing, no license is granted with respect to any copyright, industrial design, trademark,patent or other intellectual property rights of Avigilon
Corporation or its licensors.
*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 interest, taxes, depreciation, amortization, foreignexchange gain or loss, business acquisition-related costs, restructuring costs,
non-recurring legal costs, non-recurring lease termination costs, and share-based payments. Management believes that Adjusted EB ITDA is a useful measure as it provides an indication of the operational
results of the business prior to taking into consideration how those activities are financed and taxed and also prior to taking into consideration asset amortization, foreign exchange gain or loss, business
acquisition-related costs, restructuring costs, non-recurring legal costs, non-recurring lease termination costs, and share-based payments. Management also believes that analyzing operating results
exclusive of significant non-cash and non-recurring items provides a useful measure of the Avigilon’s performance. The term “Adj usted Earnings” refers to net earnings before share-based payments, foreign
exchange gain or loss, business acquisition-related costs, financing costs, restructuring costs, non-recurring legal costs, non-recurring lease termination costs, amortization of acquired intangibles and related tax effects. Please refer to the reconciliation table that accompanies Avigilon’s Q1 2016 financial statements and associated management’s discussion and analysis, which are available under
Avigilon’s profile on SEDAR at
www.sedar.com. Adjusted EBITDA and Adjusted Earnings do not have standardized meanings prescribed by IFRS and are not necessarily comparable to similar measures
provided by other companies. Investors are cautioned that Adjusted EBITDA and Adjusted Earnings should not be construed as an alternative to operating income or netincome 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 Global Inc. (“IHS”); Copyright © IHS Global Inc., 2016. The use of this conte nt 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 expressl y 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.
Disclaimers

© 2016, AvigilonCorporation. All rights reserved. No license is granted with respect to any
copyright, industrial design, trademark, patent or other IP rights of Avigilonor its licensors.
Be the world’s most trusted
security solutions company
Our Mission

© 2016, Avigilon Corporation. All rights reserved. No license is granted with respect to any
copyright, industrial design, trademark, patent or other IP rights of Avigilon or its licensors.
August 2016 | page 4
Avigilon at a Glance
Trusted Security Solutions™
Avigilon designs, develops, and manufactures video analytics,
network video management software and hardware, surveillance cameras, and access control solutions.
2015 Sales of ~$287.6Mwith ~65%in North
America (USA + Canada)
2011 -2015 Revenue CAGR of ~48%
Customers in over 120countries
Installed in more than 60,000end-users
>2,000active resellers
>650patent assets
2011 -2015 Adjusted EBITDA* CAGR of ~66%
2015 Adjusted EBITDA* of ~$51.3M
MarketCap CAD $550M
TickerSymbolTSX: AVO
* Refer to Non- IFRS Measures set out on page 2 hereof.

© 2016, Avigilon Corporation. All rights reserved. No license is granted with respect to any
copyright, industrial design, trademark, patent or other IP rights of Avigilon or its licensors.
August 2016 | page 5
Highlights
1Large and growing market
2Market and technology leader
3Complete security solutions & differentiated channel strategy
4
Recently launched AvigilonPatent License Program provides
high margin recurring revenue
5Diversified customer base
6Strong management team
7
Proven strategy with rapid revenue growth and demonstrated
operating leverage

© 2016, Avigilon Corporation. All rights reserved. No license is granted with respect to any
copyright, industrial design, trademark, patent or other IP rights of Avigilon or its licensors.
August 2016 | page 6
Security Needs are Everywhere
STADIUMS HEALTH CARE CRITICAL
INFRASTRUCTURE
AIRPORTS LOGISTICS RETAIL
BANKS COMMERCIAL CITY SURVEILLANCE CASINOS PUBLIC TRANSIT EDUCATION

© 2016, Avigilon Corporation. All rights reserved. No license is granted with respect to any
copyright, industrial design, trademark, patent or other IP rights of Avigilon or its licensors.
August 2016 | page 7
Advanced Video Surveillance
and Analytics Solutions
Video Analytics
Video Management
Software (VMS)
Network Video
Recorders (NVR)
IP Cameras (1MP up
to 30MP)
Analog Encoders
Access Control
H4 Edge Solution
(All-in-one Internet
of Things
surveillance solution)

© 2016, Avigilon Corporation. All rights reserved. No license is granted with respect to any
copyright, industrial design, trademark, patent or other IP rights of Avigilon or its licensors.
August 2016 | page 8
Public safety
Asset protection
Liability management
Regulatory compliance
2016E 2020E
$20B
$25B
Source: IHS Global Inc., 2016
Global Video Surveillance and Electronic Access Control
Large and Growing Market

© 2016, Avigilon Corporation. All rights reserved. No license is granted with respect to any
copyright, industrial design, trademark, patent or other IP rights of Avigilon or its licensors.
August 2016 | page 9
The Video Surveillance Market is Evolving
Analog Cameras
1990 2000 20162010
VCR
TV
Analog Cameras
DVR
Monitor
HD Cameras
NVR
Computer & Mobile
Devices
HD Cameras
(Avigilon 7K)
Real-Time
Alerts/Access
Control
Computer &
Mobile Devices
Video Analytics
(Avigilon Appearance Search)
NVR

© 2016, Avigilon Corporation. All rights reserved. No license is granted with respect to any
copyright, industrial design, trademark, patent or other IP rights of Avigilon or its licensors.
August 2016 | page 10
Video Analytics -the Future of our Industry
Industry-leading analytics:
oTransforms video from reactive to proactive
oIntelligent self-learning security solutions
oPlug and play
Examples:
oPerson and object identification
oPerimeter protection
oAnomaly detection
oBehavior recognition
oLicense plate recognition
oAdvanced search

© 2016, Avigilon Corporation. All rights reserved. No license is granted with respect to any
copyright, industrial design, trademark, patent or other IP rights of Avigilon or its licensors.
August 2016 | page 11
Key Video Analytics Patents
Foundational industry patents
> 650 international patent assets
oVideo Analytics
oMetadata
oVideo Tripwire
oVideo Segmentation
oRetail Point-of-Sale Integration
oObject Inserted/Removed
oAutomated License Plate Recognition
oAccess Control
oFirmware Upgrading
Patents help protect
us from infringement
by other company’s
products and form
part of our sustainable
competitive
advantage

© 2016, Avigilon Corporation. All rights reserved. No license is granted with respect to any
copyright, industrial design, trademark, patent or other IP rights of Avigilon or its licensors.
August 2016 | page 12
Strong Patent Portfolio Generating Recurring Revenue
Major industry Licensees in the Avigilon
Patent License Program include, among others:
o3VR Security, Inc.
oACTi Corporation
oAgent Video
Intelligence Ltd.
oAimetisCorp.
oBosch Security
Systems, Inc.
oFLIR Systems, Inc.
oHangzhou Hikvision
Digital Technology
Co., Ltd.
oi3 International Inc.
oIllisis,Inc.
oIntelliVision
Technologies
Corp.
oIQrityInc.
oITX Security Co.,
Ltd.
oIVS Technology
Co., Ltd.
oLuxriot(A&H
Software House,
Inc.)
oMarch Networks
Corporation
oMerit LILIN Ent.
Co., Ltd.
oPelco, Inc.
oSensormatic
Electronics, LLC
oSony
Corporation
oTopview
OptronicsCorp.
oUDP Technology
Ltd.
oVIVOTEK Inc.
The Avigilon
Patent License
Program provides
a high margin
recurring revenue
stream

© 2016, Avigilon Corporation. All rights reserved. No license is granted with respect to any
copyright, industrial design, trademark, patent or other IP rights of Avigilon or its licensors.
August 2016 | page 13
Global Organization
Global Headquarters
oVancouver, Canada
US Headquarters
oDallas, USA
Manufacturing & Fulfilment Centers
oVancouver, Canada
oPlano, USA
oAmsterdam, Netherlands
Global Reseller Network
o>2,000 active resellers
Global Sales Team
oRegional sales teams selling in > 120 countries
Full-time personnel
o>1,100 globally
Regional Offices
North America
oBoston
oWashington, DC
Europe
oLisbon
oLondon
oMilan
Asia
oDubai
oSingapore

© 2016, Avigilon Corporation. All rights reserved. No license is granted with respect to any
copyright, industrial design, trademark, patent or other IP rights of Avigilon or its licensors.
August 2016 | page 14
Manufacturing Advantage
US and Canadian Manufacturing Facilities:
oproduction capacity of over $1 Billion in annual
revenue
Key Advantages:
ohigher quality control
orapid and lower cost prototyping
oshorter delivery lead times
ogreater IP protection
Fully automated high- speed Surface Mount
Technology (SMT) lines
Multi-product assembly lines

© 2016, Avigilon Corporation. All rights reserved. No license is granted with respect to any
copyright, industrial design, trademark, patent or other IP rights of Avigilon or its licensors.
August 2016 | page 15
Delivering Greater ROI for Customers
Improved security
oProactive vs Reactive
More value
oH4 Edge Solution
combines camera, video
analytics, video
management software, and
solid state hard drive
storage in a cost effective
all-in-one device
oBusiness intelligence
provides operational
efficiencies
Lower Total Cost
of Ownership
Higher Quality
and Performance
Industry-Leading
Analytics Capabilities
Lower deployment costs
oLess hardware
oLess software
oLess labor
High Definition Stream
Management (HDSM)
TM
oPatented technology
oReduces bandwidth
Superior customer support
oSingle point of contact
Vertically integrated
oIn-house design,
development, and
manufacturing
Fully integrated
oVideo surveillance, access
control, and video analytics
Open platform
oIntegrates with third party
products

© 2016, Avigilon Corporation. All rights reserved. No license is granted with respect to any
copyright, industrial design, trademark, patent or other IP rights of Avigilon or its licensors.
August 2016 | page 16
High Quality and Diversified Customer Base
Q2 2016 Revenue Breakdown by Geography
Select Case Studies
United
States
60%
EMEA
25%
Canada
6%
Asia
Pacific
6%
Latin
America
3%
Select Markets & Clients
Rogers Centre
Stadiums
Salop Design & Engineering Business Intelligence
Grippon Retail
San Diego Metro Transit System Public Transit
LaSalle Plaza Commercial
University of Sydney Education
Pan Nordic Logistics Logistics
The Point Casino Casinos
Tampere City Department of Social Services and Health Care Health CareTimmins Police Service Law Enforcement
City of Yerevan City Surveillance
Whistler Blackcomb Recreational Facilities
Aguasdo Mondego
SA Critical Infrastructure
King Abdulaziz
International Airport Airports

© 2016, Avigilon Corporation. All rights reserved. No license is granted with respect to any
copyright, industrial design, trademark, patent or other IP rights of Avigilon or its licensors.
August 2016 | page 17
Growth Strategy - Proven and Successful
Into emerging markets
oAPAC and LATAM
Increase coverage in
established markets
oNA and EMEA
Grow Business
Development Department
Expanded trade show
presence
Focused marketing
initiatives
Strategic advertising
R&D teams to leverage
deep talent pools in
Boston and Vancouver
Continue to bring new
products and features to
market faster
Continue to identify cost
reductions
Grow our patent portfolio
Increase Brand Awareness Innovation LeaderExpand Sales Reach

© 2016, Avigilon Corporation. All rights reserved. No license is granted with respect to any
copyright, industrial design, trademark, patent or other IP rights of Avigilon or its licensors.
August 2016 | page 18
Strong Management Team
RicLeong
Chief Financial Officer and 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 in 2014, 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
Mahesh Saptharishi
Chief Technology Officer and Senior Vice President
• Dr. Saptharishi has extensive experience in intelligent video analytics technology, software and camera hardware specificallyfor the security industry
• Dr. Saptharishi joined Avigilon in January 2014 after its acquisition of VideoIQInc. and previously served as Senior Vice President, Analytics and Data
Science of Avigilon
Joel Schuster
Chief Legal Officer, Senior Vice President, and Corporate Secretary
• Mr. Schuster joined Avigilon in 2013 and heads the Legal department and oversees the company’s legal and regulatory matters on a global basis
• Prior to joining Avigilon, Mr. Schuster was Corporate Secretary and in- house counsel, managing the legal responsibilities for a group of public
companies
James Henderson
Senior Vice President, Global Sales
• Mr. Henderson has extensive experience running Global Sales organizations in the Security, IT and Technology industries
• Prior to Avigilon, Mr. Henderson held several key roles for various technology companies, including overseeing both domestic and internationalsales
strategies
Alexander Fernandes
Founder, President, Chief Executive Officer and Chairman of the Board
• Mr. Fernandesfounded Avigilonin 2004 and grew Avigilonto become a global technology leader in high definition surveillance
• Prior to Avigilon, Mr. Fernandessuccessfully founded and grew QImaging(Quantitative Imaging Corporation), a leading developer and manufacturer
of high performance quantitative digital cameras and software for the scientific imaging and machine vision markets
Years of Relevant
Experience
>20
>14
>15
>17
>10

© 2016, Avigilon Corporation. All rights reserved. No license is granted with respect to any
copyright, industrial design, trademark, patent or other IP rights of Avigilon or its licensors.
August 2016 | page 19
Financial Overview
Rapid Revenue Growth
1
Strong Gross Margins
2
Demonstrated Operating Leverage
3
Track Record of Profitability
4

© 2016, Avigilon Corporation. All rights reserved. No license is granted with respect to any
copyright, industrial design, trademark, patent or other IP rights of Avigilon or its licensors.
August 2016 | page 20
Rapid Revenue Growth
60.7
100.3
172.7
245.2
287.6
268.4
309.6
2011 2012 2013 2014 2015 2015 2016
International
North America
15%
Year ended December 31
~48% CAGR
$ Millions
Trailingtwelve-month
period ended June 30

© 2016, Avigilon Corporation. All rights reserved. No license is granted with respect to any
copyright, industrial design, trademark, patent or other IP rights of Avigilon or its licensors.
August 2016 | page 21
Strong Gross Margins
48%
49%49%
50%
51%
52%
54%
55%
56%
57%57%
57%
58%58%58%
57%
55%
40%
45%
50%
55%
60%
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2012 2013 2015
Trailing 12 Months Performance For the Period Ended
2016
We continue to outgrow the market while maintaining strong gross margins.
2014

© 2016, Avigilon Corporation. All rights reserved. No license is granted with respect to any
copyright, industrial design, trademark, patent or other IP rights of Avigilon or its licensors.
August 2016 | page 22
Demonstrated Operating Leverage
4.1
6.4
11.4
22.4
24.7
5.9
8.4
0.0
9.0
18.0
27.0
36.0
2011 2012 2013 2014 2015 Q2 2015 Q2 2016
Gross Research & Development
($ Millions)
14.4
25.0
40.2
56.4
70.8
17.9
20.5
0.0
25.0 50.0 75.0
100.0
2011 2012 2013 2014 2015 Q2 2015Q2 2016
4.5
8.9
17.6
30.0
42.3
12.1
13.3
0.0
15.0 30.0 45.0 60.0
2011 2012 2013 2014 2015 Q2 2015Q2 2016
Sales & Marketing
($ Millions)
General & Administrative
($ Millions)
7% 6% 7%
9%9% 8%
10%
0%
5%
10%
15%
20%
2011 2012 2013 2014 2015 Q2 2015Q2 2016
% of Revenue 24%
25%
23%23%
25% 25%
24%
0%
10% 20% 30% 40%
2011 2012 2013 2014 2015 Q2 2015Q2 2016
% of Revenue
7%
9%
10%
12%
15%
17%
16%
0% 5%
10% 15% 20%
2011 2012 2013 2014 2015 Q2 2015Q2 2016
% of Revenue

© 2016, Avigilon Corporation. All rights reserved. No license is granted with respect to any
copyright, industrial design, trademark, patent or other IP rights of Avigilon or its licensors.
August 2016 | page 23
Track Record of Profitability
3.9
8.2
23.7
33.5
30.4
32.7
24.8
6.7
12.7
33.9
48.9
51.3 51.5
46.8
2011 2012 2013 2014 2015 2015 2016
Adjusted Earnings
Adjusted EBITDA
Year ended December 31
For the twelve- month period
ended June 30
Adjusted Earnings*: ~67% CAGR
Adjusted EBITDA*: ~66% CAGR
$ Millions
* Refer to Non- IFRS Measures set out on page 2 hereof.

© 2016, Avigilon Corporation. All rights reserved. No license is granted with respect to any
copyright, industrial design, trademark, patent or other IP rights of Avigilon or its licensors.
August 2016 | page 24
On Track to Accomplish CAD$ Revenue Goal
$500M
Annual revenue run rate
goal by end of 2016
CAD$
>$445M
Annual revenue run rate
Q2 2016
$60M
Annual revenue run rate
Q3 2011 at IPO
5-year goal from 2011 IPO

© 2016, Avigilon Corporation. All rights reserved. No license is granted with respect to any
copyright, industrial design, trademark, patent or other IP rights of Avigilon or its licensors.
August 2016 | page 25
Highlights
1Large and growing market
2Market and technology leader
3Complete security solutions & differentiated channel strategy
4
Recently launched AvigilonPatent License Program provides
high margin recurring revenue
5Diversified customer base
6Strong management team
7
Proven strategy with rapid revenue growth and demonstrated
operating leverage

© 2016, Avigilon Corporation. All rights reserved. No license is granted with respect to any
copyright, industrial design, trademark, patent or other IP rights of Avigilon or its licensors.
Thank you!
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