Avigilon investor-presentation-jan-20-2016-final

© 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.
INVESTOR PRESENTATION | JANUARY 2016

Jan 16 | page 2
Certain information and statements in this presentation 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, the information under the heading “Guidance” and any statements (express or implied) respecting: Avigilon’s mission, strategies, and objectives; projected
growth, revenues, expenses, capital expenditures, and earnings; trends, opportunities, growth, 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 awareness 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 Avigilon’s patent licensing program; and the expansion, development, and adequacy of Avigilon’s facilities. Forward-looking statements, including the Guidance, 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. Readers 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.
Management has based the forward-looking statements on estimates and assumptions that it believed were reasonable at the time, including 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 3, 2015 (the “AIF”) and Management’s Discussion and Analysis for
the Three and Nine Months Ended September 30, 2015 dated November 3, 2015 (the “MD&A”), 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, products,
financial position, and industry. Important risks that could cause such differences include, but are not limited to, those discussed in detail in the AIF and in the MD&A. In particular, more information about the
risks and uncertainties affecting Avigilon’s business is provided in the “Risk Factors” section of the AIF. Although Avigilon has attempted to identify factors that may cause actual actions, events or results to
differ materially from those disclosed in the forward-looking statements, 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 Avigilon’s control. Accordingly, readers 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 herein are qualified by this cautionary statement.
© 2016, Avigilon Corporation. All rights reserved. AVIGILON, the AVIGILON logo, AVIGILON CONTROL CENTER, HIGH DEFINITION STREAM MANAGEMENT (HDSM), and TRUSTED BUSINESS
INTELLIGENCE AND SECURITY 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. 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.
This presentation includes content supplied by IHS Inc.; Copyright © IHS INC., 2015. 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 warrant, expressed or implied, is or will be made in relation to, 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
Disclaimers

Jan 16 | page 3
Be the world’s most trusted
business intelligence and
security solutions company
Our Mission

Jan 16 | page 4
 Video Analytics
 Video Management
Software (VMS)
 Network Video
Recorders (NVR)
 IP Cameras
(1MP up to 30MP)
 Analog Encoders
 Access Control
Internet Local Area Network
NVR w/ VMS
Analog Video Encoder
& Analog Cameras
IP Cameras
Access Control
We Provide End-to-End Security Solutions

Jan 16 | page 5
STADIUMS HOSPITALS CRITICAL
INFRASTRUCTURE
AIRPORTS PORTS RETAIL
BANKS OFFICES LAW ENFORCEMENT
& PRISONS
CASINOS TRANSPORTATION SCHOOL CAMPUSES
Security Needs are Everywhere

Jan 16 | page 6
 Public safety
 Asset protection
 Liability management
 Regulatory compliance
2015E 2019E
US$19.7B
US$28.2B
Source: IHS Inc., 2015
Global Video Surveillance and Electronic Access Control
Large and Growing Addressable Market

Jan 16 | page 7
Solving the problems that
matter most to our customers at
a lower total cost of ownership
Delivering Greater ROI for Customers

Jan 16 | page 8
1280 pixel (px) X 720px
1 MP Camera coverage
2592px X 1944px
7360px X 4128px
Ten Avigilon 30 megapixel cameras can cover the equivalent of 330 1 megapixel cameras.
Superior Image Quality and Coverage
Case Studies: go to http://avigilon.com/case-studies/

Jan 16 | page 9
User is notified
immediately
HD video analytics camera
or appliance detects an
intruder
User reviews
event via mobile
or central station
User responds
in real-time
Talk down via phone &
camera-linked speaker
On-site security, central station or
law enforcement called to respond
Intruder flees or
is apprehended
or
Detect and Prevent through Video Analytics

Jan 16 | page 10
 Simplified architecture provides
access control at a lower cost:
o Less hardware
o Easy installation
o Greater ease of use
 Video integration provides added
value:
o Multi-factor authentication
o Prevent tailgating
o Detect, flag, and capture unusual activity
Integrated Access Control

Jan 16 | page 11
 We believe we have the industry’s
strongest patent portfolio covering:
o Video Analytics
o HD Video Surveillance
o Integrated Access Control
 281* US and international patents
 285* US and international patent
applications
 Patent licensing program
o High margin
o Recurring royalty revenue
High margin
software and
patent licensing
revenue counters
commoditization of
hardware
* As at September 30, 2015
Intellectual Property

Jan 16 | page 12
 US Manufacturing Facility operational in Q4 2015
o >C$500M capacity
 Canadian Manufacturing Facility
o >C$500M capacity
 Key Advantages:
o Higher Quality
o New Products to Market Faster
o Shorter Lead Times
o Preferential access to Government projects
o IP Protection
Made in USA and Canada

Jan 16 | page 13
Global Reseller Network
 >2,000 active resellers
Global Sales Team
 Selling in more than 120 countries
 Supported by Inside Sales Department and Sales Engineers
 Business Development Department
o Focused on longer lead time enterprise opportunities
Go-to-Market Strategy

Jan 16 | page 14
$0.24
$0.27
Adjusted EPS
Q3 2014 Q3 2015
16.4
18.9
Adjusted EBITDA
Q3 2014 Q3 2015
71.0
95.1
Revenue
Q3 2014 Q3 2015
34%
15% 13%
Q3 Results Summary
$ Millions CDN

Jan 16 | page 15
44% 46% 47% 48% 49% 49% 50% 51% 52% 54% 56% 56% 57% 57% 57% 58% 58%
9% 11% 11% 9% 11% 13% 14% 15%
18% 20% 20% 20% 20% 20% 19% 19% 18%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
0
50
100
150
200
250
300
350
$MillionsCDN
Revenue Adjusted EBITDA Gross Margin Adjusted EBITDA Margin
2012 2013 2014 20152011
Trailing 12 Months Performance
For the Period Ended

Jan 16 | page 16
5.2
16.9
32.3
60.0
100.3
178.3
271.4
247.8
339.8
2008 2009 2010 2011 2012 2013 2014 2014 2015
International
North America
Year-ended December 31
93% CAGR
For the twelve-month period
ended September 30
37%
Revenue
$ Millions CDN

Jan 16 | page 17
0.3 1.1
3.9
8.2
24.4
37.2
33.2
39.2
0.4
2.8
6.6
12.7
34.9
54.3
49.0
62.7
2009 2010 2011 2012 2013 2014 2014 2015
Adjusted Earnings
Adjusted EBITDA
Year-ended December 31 For the twelve-month period
ended September 30
Adjusted Earnings: 162% CAGR
Adjusted EBITDA: 167% CAGR
Adjusted Earnings and Adjusted EBITDA
$ Millions CDN

Jan 16 | page 18
YTD 2015
(9 months ended September 30, 2015)
2015 Guidance
Revenue $260 million
36% Year-over-Year Growth
$358 - $368 million
32%-36% Year-over-Year Growth
Adjusted EPS $0.58 $0.76 - $0.82
Guidance
$ CDN

Jan 16 | page 19
$500MAnnual revenue run rate
target by end of 2016*
$380M
Annual revenue run rate
Q3 2015*
*$CDN
Delivering Long-term Growth

Jan 16 | page 20
 Into new markets
o APAC and LATAM
 Increase coverage in
established markets
o NA and EMEA
 Grow Business
Development Department
 Expanded trade show
presence
 Focused marketing
initiatives
 Strategic advertising
 Centers of Excellence to
leverage deep talent
pools in Boston, Dallas,
and Vancouver
 Continue to bring new
products and features to
market faster
 Continue to identify cost
reductions
 Grow our patent portfolio
Increase Brand Awareness Accelerate InnovationExpand Sales Reach
Proven and Successful
Growth Strategy

Jan 16 | page 21
 US$17M acquisition of RedCloud
Security, Inc. in May 2013
 Innovative provider of web-based,
physical and virtual access control
systems
 Open IP platform; integrates physical
security with identity management
 IP Portfolio: added 2 patents and
2 patents pending
 Fully integrated into Avigilon system in
January 2014 and rolled out as Avigilon
Access Control Manager
 US$31M acquisition of VideoIQ, Inc.
in January 2014
 Leader in real-time intelligent video
analytics
 Commercially proven, proprietary
technology includes live detection,
event verification and self-learning
 Strong IP portfolio: added 40 patents
granted or pending internationally
 Experienced development team
 Full three phase integration expected
to be complete in 12-18 months
 US$80M acquisition of the entire patent
portfolio and patent licensing program of
ObjectVideo, Inc. in December 2014
o Strongest video analytics patent portfolio in
the industry including 76 US and
international patents, and over 50 US and
international patent applications
o Established IP licensing program with
19 licensees including Sony, Panasonic,
Bosch, Hikvision, Pelco, FLIR Systems,
and Sensormatic
 Announced US$13M acquisition of 96 US
and international patents and 25 US and
international patent applications from four
unrelated vendors in January 2015
Avigilon now holds 281* US and international patents,
and 285* US and international patent applications
Patent Acquisitions
* As at September 30, 2015
Acquisitions to Support Continued Growth

Jan 16 | page 22
Positioned for
continued
growth
 Strong Team
 Proven Strategy
 Large & Growing
Market
 Best-of-Breed Products
 Well Financed
Summary

Jan 16 | page 23
BCTIA Company of the Year
2012
TSX Tech Stock of the Year
2012
Ranked among the Fastest Growing
Canadian Tech Companies
2010, 2011, 2012, 2013, 2014 & 2015
Leadership Award and Advancing
Technology and Innovation 2014
Tech Companies in North America
2011, 2012, 2013, 2014 & 2015
Companies in Canada
2013 & 2014
Recent Awards

Thank you!

Avigilon investor-presentation-jan-20-2016-final

Recommended

Recommended

More Related Content

What's hot

What's hot (10)

Similar to Avigilon investor-presentation-jan-20-2016-final

Similar to Avigilon investor-presentation-jan-20-2016-final (20)

Recently uploaded

Recently uploaded (20)

Avigilon investor-presentation-jan-20-2016-final