AVA RISK GROUP LIMITED — Investor Presentation 2021

May 26, 2021

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PROTECTING HIGH VALUE ASSETS & CRITICAL INFRASTRUCTURE

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INDUSTRIAL & COMMERCIAL
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MILITARY & GOVERNMENT
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FINANCIAL INSTITUTIONS
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FINANCIAL INSTITUTIONS INDUSTRIAL & COMMERCIAL MILITARY & GOVERNMENT MINING TRANSPORT ENERGY

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TWO DIVISIONS, THREE MISSION-CRITICAL BUSINESSES

TECHNOLOGY DIVISION

SERVICES DIVISION Global provider of secure international logistics

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Global leader in fibre optic intrusion detection systems

Leader in high security access control technology

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• • •

• Perimeter Intrusions Access Control Readers Risk Consulting

• • • • Pipeline Intrusion High Security Locking Precious Metals

• • • • Condition Monitoring Custom Encryption High Risk Valuables

• • • • Data Network Protection Biometric Solutions Banknotes

• • • • 2,500+ Systems Deployed 3,500+ Sites Partners in 100+ Countries

• • • • Products & Services Model COTS[1] & Custom Product Recurring Services Model

• Commercial off-the-shelf

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PROVEN GO-TO-MARKET STRATEGIES

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OFF THE SHELF
SERVICES PRODUCTS LICENCING SOLUTIONS PRODUCTS
PRODUCTS
SYSTEM SYSTEM
DISTRIBUTORS MANUFACTURERS DISTRIBUTORS GLOBAL PARTNER SECURITY NETWORK
INTEGRATORS INTEGRATORS
OEM [1] FOR
INSTALLERS INSTALLERS
MANUFACTURERS
END USERS
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1. Original Equipment Manufacturer

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MARKET LEADER IN RISK MANAGEMENT SERVICES & TECHNOLOGY

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EXTENSIVE GLOBAL FOOTPRINT
H1 FY2021 REVENUE
36%
52%
12%
H1 FY2021 EBITDA
31%
49%
20%
AVA Global Logistics
Future Fibre Technologies
BQT Solutions
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+100 countries +2,500 systems deployed +3,500 sites protected

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PROVIDER OF INNOVATIVE PRODUCTS & SERVICES

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1994
2001-03 2008
2004
Establish FFT to
Deploy world’s first long- Develop advanced
research innovative First US military
range locating security classification algorithms,
fibre optic sensing sensor to Australian and installation minimising environmental
systems International facilities nuisance alarms
July 2018
May 2018 Jan 2018 Dec 2017 Mar 2015
Win Dept of Human
Change name to FFT "Aura Ai" fibre Merger between FFT lists on
Services contract for
AVA Risk Group optic sensing platform FFT & ASX-listed ASX
BQT smart readers
released MaxSec
May 2019 Feb 2020 May 2020 2021
Further wholesale Aura IQ POV trials
Win major data network AVA Global wins
banknote contract wins underway with
security contract with new US wholesale
IMoD (US$11.9m) banknote contract with major commercial major mining
banks & central banks companies
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DELIVERING SUSTAINABLE PROFIT GROWTH

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$48.5m
$46.1m
$31.6m
$19.8m
$13.1m
$7.4m
-$2.9m -$2.9m
2
FY2018 FY2019 FY2020 9mths FY2021
Revenue EBITDA
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• Record revenues as Ava Group delivers positive EBITDA and enters next phase of growth

• FY2021 guidance for Group Revenue of $60-64m and Group EBITDA of $13-15m[1]

• FY2021 guidance assumes no change to the exchange rate at 31 March 2021 with A$1 equal to US$0.7592 2. Unaudited financial information

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MARKET OPPORTUNITY DRIVEN BY GLOBAL INDUSTRY TRENDS

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Macro trends

support LT

growth

• Global security concerns driving rapid adoption of high security technology and increased government spending on security and defence

• Global connectivity driving greater demand for remote service capability to deliver upgrades and ongoing support

• Market consolidation within global secure logistics market driving opportunity for Services Division

• Expanding technology into new markets and applications

Multiple business

growth drivers

• Multiple go-to-market opportunities and provision of value-added services

• Growing share of spend from existing logistics customers and new client wins

• Multiplier effect as Ava Global scales and prospective client base increases

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EXPERTS IN HIGH SECURITY & SENSING TECHNOLOGY

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Diversified business model with low risk go-to-market strategies

Domain expertise drives innovation and continuous improvement

World-leading portfolio of premium services and technologies

Strong competitive position underpinned by AVA’s IP, performance differentiation and compelling TCO[1]

Customer-centric focus on product and service development with blue-chip client base Proven track record in delivering complex services and solutions

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1. TCO - Total Cost of Ownership

Slide divider

TECHNOLOGY DIVISION

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FIBRE OPTIC PRODUCTS FOR INTRUSION DETECTION

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• Global leader in advanced fibre optic intrusion detection systems

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$16.8m
Protect critical sites and infrastructure across
transport, government, military and utility sectors
$12.3m $12.5m
$11.5m
COVID-19 restrictions led to delays in number of
major security-related contracts in FY2021
Backlog and anticipated orders of $6m expected to
$6.0m
be deferred until FY2022
$4.3m
Strong pipeline of growth opportunities and well
positioned to meet pent-up demand
-$1.7m
US$1-2bn >2,500 -$2.7m
est. addressable systems installed FY2018 FY2019 FY2020 H1FY2021
market [1] in 70+ countries
Revenue EBITDA
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• Protect critical sites and infrastructure across transport, government, military and utility sectors

• COVID-19 restrictions led to delays in number of major security-related contracts in FY2021

• Backlog and anticipated orders of $6m expected to be deferred until FY2022

• Strong pipeline of growth opportunities and well positioned to meet pent-up demand

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1. Ava Risk Group estimate

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HIGH-QUALITY CUSTOMER BASE

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SYSTEM INTEGRATORS / DISTRIBUTORS

END USERS

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IMoD CONTRACT PROVIDES BLUEPRINT FOR GROWTH

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• Large scale licensing of FFT’s SecureLink technology to Indian Ministry of Defence via in-country manufacturing partner

• Fulfilment and licencing model provides low working capital and low risk, high margin go-to-market approach

• US$11.9m in licensing income including tax credits

• Final delivery expected in FY2022 following COVID-19 delay

• ~US$3.4m in additional revenue from 7-year spares and maintenance contract[1]

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+40,000km of data communications cables protected

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1. After the initial 3-year warranty period

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AURA AI: LEVERAGING UNIQUE TECHNOLOGY INTO NEW APPLICATIONS

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• Platform uses the latest advanced optical designs and signal processing algorithms

• Differentiates between intrusions, nuisance alarms and other causes of offence disturbance

• Extend application into adjacent markets including condition monitoring of power cables

• Ongoing development in software capability to leverage sensing technology

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Conveyor Road
Rail Sub-sea Power Cables
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NEW CONVEYOR HEALTH MONITORING SOLUTION

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• World-leading fibre optic technology with advanced signal processing algorithms and cloud-based analysis, reporting and alerts

• Developed in partnership with leading industry research organisation Mining3

• Multiple Proof of Value (POV) trials with mining houses and bulk material handling facilities

• Cloud platform allows for future enhancements and SaaS opportunities for recurring revenue stream

• Premium partnership agreement with US Company Strata Worldwide to distribute to mining and tunneling operations

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Conveyor health monitoring and intelligence platform

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LEADER IN HIGH SECURITY ACCESS CONTROL TECHNOLOGY

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• Provider of high security card and biometric readers, electromechanical locks and related electronic security products

• Military, critical infrastructure, commercial, industrial and residential applications

• Expanded distribution agreements with locking industry leaders ASSA ABLOY and dormakaba

• Consolidation of Auckland production activities drives operational efficiency and better supports customer demand

US$0.6-1.5bn est. +3,500 sites addressable market[1] in >50 countries

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$4.3m $4.3m $4.3m
$3.0m
$2.4m
$0.8m
$0.0m
-$0.1m
FY2018 FY2019 FY2020 H1FY2021
Revenue EBITDA
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1. Ava Risk Group estimate

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BUILDING PARTNER RELATIONSHIPS TO EXPAND MARKET REACH

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DISTRIBUTORS END USERS

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SERVICES DIVISION

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LEVERAGING MARKET CONSOLIDATION OPPORTUNITY

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• Global provider of secure international logistics of high-risk valuables, precious metals and currency

• Highly scalable partner model provides ability to expand customer base globally

• Investment in technology to automate processes and realise significant operational efficiencies

• Strong revenue growth drives turnaround in profitability

• Further expansion into Latin America via strategic partnerships

US$0.6-1.0bn

US$0.6-1.0bn 100+ est. addressable market[1] Countries

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$25.1m
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$18.4m
$15.9m
$4.5m
$3.7m
$2.4m
-$0.1m
-$0.9m
FY2018 FY2019 FY2020 H1FY2021
Revenue EBITDA
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1. Ava Risk Group estimate

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FINANCIALS &

YEAR TO DATE FY2021 FINANCIAL HIGHLIGHTS

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Group Revenue Technology Revenue Services Revenue $48.5m $19.8m $28.7m Up 48.2% on pcp[1] Up 16.6% on pcp Up 82.4% on pcp Gross Profit Group EBITDA Group EBITDA margin $25.3m $13.1m 27% Up 59.2% on pcp Up 138.3% on pcp vs 17% in pcp

Strong financial position with cash of $11.7m and no debt

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1. All figures compare 9 months to 31 March unless otherwise indicated; unaudited financial information

OUTLOOK

FY2021 Guidance : Group Revenue forecast of $60-64m and Group EBITDA of $13-15m

$6.0m in backlog and anticipated orders for Technology Division expected to be deferred to FY2022

Generate meaningful revenue from partial conversion of Aura-IQ sales pipeline

New client wins and higher contracted customer spend to drive Services Division revenue growth in FY2022

Leverage BQT ’s key distributor partners to drive sales in the US and Europe

Expand long-term maintenance contracts and remote servicing solutions to grow annual recurring revenue

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InvestorEnquiries: fdixon@citadelmagnus.com

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FORWARD LOOKING STATEMENTS

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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). Data for the 9 months to 31 March 2021 is unaudited and subject to review.

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.

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