corporate presentation | july 2016 all amounts in us...

© 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 | July 2016

All amounts in US$ unless otherwise stated


copyright, industrial design, trademark, patent or other IP rights of Avigilon or its licensors.July 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 projected 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 results to differ 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 statements 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 United 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, 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 believes that Adjusted EBITDA 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 “Adjusted 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 net income 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 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 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 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

http://www.sedar.com/

http://www.avigilon.com/patents

http://www.sedar.com/



Be the world’s most trusted

security solutions company

Our Mission



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 ~$287.6M with ~65% in North

America (USA + Canada)

2011 - 2015 Revenue CAGR of ~48%

Customers in over 120 countries

Installed in more than 60,000 end-users

>2,000 active resellers

>600 patent assets

2011 - 2015 Adjusted EBITDA* CAGR of ~66%

2015 Adjusted EBITDA* of ~$51.3M

Market Cap CAD $550M

Ticker Symbol TSX: AVO

* Refer to Non-IFRS Measures set out on page 2 hereof.

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRxqFQoTCNOgopDitsgCFQVuPgodYloPVw&url=http://escc-ksa.com/&psig=AFQjCNGi4H2k0RAInltXlRJaIeY9GZtjcg&ust=1444527417158287

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRxqFQoTCNOgopDitsgCFQVuPgodYloPVw&url=http://escc-ksa.com/&psig=AFQjCNGi4H2k0RAInltXlRJaIeY9GZtjcg&ust=1444527417158287



Highlights

1 Large and growing market

2 Market and technology leader

3 Complete security solutions & differentiated channel strategy

4Recently launched Avigilon Patent License Program provides

high margin recurring revenue

5 Diversified customer base

6 Strong management team

7Proven strategy with rapid revenue growth and demonstrated

operating leverage



Security Needs are Everywhere

STADIUMS HEALTH CARE CRITICAL

INFRASTRUCTURE

AIRPORTS LOGISTICS RETAIL

BANKS COMMERCIAL CITY SURVEILLANCE CASINOS PUBLIC TRANSIT EDUCATION



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)



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



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



Video Analytics - the Future of our Industry

Industry-leading analytics:

o Transforms video from reactive to proactive

o Intelligent self-learning security solutions

o Plug and play

Examples:

o Person and object identification

o Perimeter protection

o Anomaly detection

o Behavior recognition

o License plate recognition

o Advanced search



Key Video Analytics Patents

Foundational industry patents

> 600 international patent assets

o Video Analytics

o Metadata

o Video Tripwire

o Video Segmentation

o Retail Point-of-Sale Integration

o Object Inserted/Removed

o Automated License Plate Recognition

o Access Control

o Firmware Upgrading

Patents help protect

us from infringement

by other company’s

products and form

part of our sustainable

competitive

advantage



Strong Patent Portfolio Generating Recurring Revenue

Major industry Licensees in the Avigilon

Patent License Program include, among others:

o 3VR Security, Inc.

o ACTi Corporation

o Agent Video Intelligence Ltd.

o Aimetis Corp.

o Bosch Security Systems, Inc.

o FLIR Systems, Inc.

o Hangzhou HikvisionDigital Technology Co., Ltd.

o i3 International Inc.

o Illisis,Inc.

o IntelliVision

Technologies

Corp.

o IQrity Inc.

o ITX Security Co.,

Ltd.

o IVS Technology

Co., Ltd.

o Luxriot (A&H

Software House,

Inc.)

o March Networks

Corporation

o Merit LILIN Ent.

Co., Ltd.

o Pelco, Inc.

o Sensormatic

Electronics, LLC

o Sony

Corporation

o Topview

Optronics Corp.

o UDP Technology

Ltd.

o VIVOTEK Inc.

The Avigilon

Patent License

Program provides

a high margin

recurring revenue

stream



Global Organization

Global Headquarterso Vancouver, Canada

US Headquarterso Dallas, USA

Manufacturing & Fulfilment Centers

o Vancouver, Canada

o Plano, USA

o Amsterdam, Netherlands

Global Reseller Network

o >2,000 active resellers

Global Sales Team

o Regional sales teams selling in > 120 countries

Full-time personnel

o >1,100 globally

Regional Offices

North America

o Boston

o Washington, DC

Europe

o Lisbon

o London

o Milan

Asia

o Dubai

o Singapore



Manufacturing Advantage

US and Canadian Manufacturing Facilities:o production capacity of over $1 Billion in annual

revenue

Key Advantages:

o higher quality control

o rapid and lower cost prototyping

o shorter delivery lead times

o greater IP protection

Fully automated high-speed Surface Mount

Technology (SMT) lines

Multi-product assembly lines



Delivering Greater ROI for Customers

Improved security

o Proactive vs Reactive

More value

o H4 Edge Solution

combines camera, video

analytics, video

management software, and

solid state hard drive

storage in a cost effective

all-in-one device

o Business intelligence

provides operational

efficiencies

Lower Total Cost

of Ownership

Higher Quality

and Performance

Industry-Leading

Analytics Capabilities

Lower deployment costs

o Less hardware

o Less software

o Less labor

High Definition Stream

Management (HDSM)TM

o Patented technology

o Reduces bandwidth

Superior customer support

o Single point of contact

Vertically integrated

o In-house design,

development, and

manufacturing

Fully integrated

o Video surveillance, access

control, and video analytics

Open platform

o Integrates with third party

products



High Quality and Diversified Customer Base

Q1 2016 Revenue Breakdown by GeographySelect Case Studies

UnitedStates56%

EMEA27%

Canada6%

AsiaPacific

8%

LatinAmerica

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 Care

Timmins Police

Service

Law Enforcement

City of Yerevan

City Surveillance

Whistler Blackcomb

Recreational Facilities

Aguas do Mondego

SA

Critical Infrastructure

King Abdulaziz

International Airport

Airports



Growth Strategy - Proven and Successful

Into emerging marketso APAC and LATAM

Increase coverage in

established marketso NA 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



Strong Management Team

Ric LeongChief 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 specifically for the security industry

Dr. Saptharishi joined Avigilon in January 2014 after its acquisition of VideoIQ Inc. 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 HendersonSenior 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 international sales

strategies

Alexander FernandesFounder, President, Chief Executive Officer and Chairman of the Board

Mr. Fernandes founded Avigilon in 2004 and grew Avigilon to become a global technology leader in high definition surveillance

Prior to Avigilon, Mr. Fernandes successfully 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



Financial Overview

Rapid Revenue Growth

1

Strong Gross Margins

2

Demonstrated Operating Leverage

3

Track Record of Profitability

4



Rapid Revenue Growth

60.7

100.3

172.7

245.2

287.6

255.3

296.9

2011 2012 2013 2014 2015 2015 2016

International

North America

16%

Year ended December 31

~48% CAGR

$ Millions

Trailing twelve-month

period ended March 31



Strong Gross Margins

48%49% 49%

50%51%

52%

54%55%

56%57% 57% 57%

58% 58%57% 57%

40%

45%

50%

55%

60%

Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2012 2013 2015

Trailing 12 Months Performance For the Period Ended

2016

We continue to outgrow the market while maintaining strong gross margins.

2014



Demonstrated Operating Leverage

4.1

6.4 11.4

22.4 24.7

6.1 7.1

0.0

9.0

18.0

27.0

36.0

2011 2012 2013 2014 2015 Q1 2015 Q1 2016

Gross Research & Development

($ Millions)

14.4

25.0

40.2

56.4

70.8

16.8 17.9

0.0

25.0

50.0

75.0

100.0

2011 2012 2013 2014 2015 Q1 2015 Q1 2016

4.5 8.9

17.6

30.0

42.3

10.7 11.4

0.0

15.0

30.0

45.0

60.0

2011 2012 2013 2014 2015 Q1 2015 Q1 2016

Sales & Marketing

($ Millions)

General & Administrative

($ Millions)

7% 6% 7%

9% 9%10% 10%

0%

5%

10%

15%

20%

2011 2012 2013 2014 2015 Q1 2015 Q1 2016

% of Revenue

24% 25%23% 23%

25% 28%26%

0%

10%

20%

30%

40%

2011 2012 2013 2014 2015 Q1 2015 Q1 2016

% of Revenue

7%9%

10%

12%

15%

18%

16%

0%

5%

10%

15%

20%

2011 2012 2013 2014 2015 Q1 2015 Q1 2016

% of Revenue



Track Record of Profitability

3.9

8.2

23.7

33.530.4

32.1

28.1

6.7

12.7

33.9

48.951.3

47.4

51.2

2011 2012 2013 2014 2015 2015 2016

Adjusted Earnings

Adjusted EBITDA

Year ended December 31 For the twelve-month period ended March 31

Adjusted Earnings*: ~67% CAGR

Adjusted EBITDA*: ~66% CAGR

$ Millions

* Refer to Non-IFRS Measures set out on page 2 hereof.



On Track to Accomplish CAD$ Revenue Goal

$500MAnnual revenue run rate

goal by end of 2016

CAD$

>$435MAnnual revenue run rate

Q4 2015

$60MAnnual revenue run rate

Q3 2011 at IPO

5-year goal from 2011 IPO



Highlights

1 Large and growing market

2 Market and technology leader

3 Complete security solutions & differentiated channel strategy

4Recently launched Avigilon Patent License Program provides

high margin recurring revenue

5 Diversified customer base

6 Strong management team

7Proven strategy with rapid revenue growth and demonstrated

operating leverage



Thank you!

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