investor presentation | january...

© 2015 Avigilon Corporation. All rights reserved. No license is granted with respect to any copyright, trademark, patent or other intellectual property rights of Avigilon Corporation or its affiliates.

INVESTOR PRESENTATION | JANUARY 2015

© 2015 Avigilon Corporation. All rights reserved. No license is granted with respect to any copyright, trademark, patent or other intellectual property rights of Avigilon Corporation or its affiliates.January 2015 | page 2

Forward-Looking StatementsCertain statements contained in this presentation, including all statements that are not historical facts, contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Forward-looking statements normally contain words like ‘believe’, ‘expect’, ‘anticipate’, ‘plan’, ‘intend’, ‘continue’, ‘estimate’, ‘may’, ‘will’, ‘should’ and similar expressions, and include, without limitation, statements respecting Avigilon’s areas of planned growth and spending.

Such statements are not guarantees of future performance and are based on management’s expectations and assumptions regarding historical trends, current conditions and expected future developments, as well as other factors that management believes are appropriate in the circumstances. Management has based these statements on estimates and assumptions that they believed were reasonable when the statements were prepared. Actual results could be substantially different due to the risks and uncertainties associated with and inherent to Avigilon’s business. Important risks that could cause such differences include, but are not limited to the direction in which the surveillance industry moves, the ability of Avigilon to implement, license, and/or monetize its intellectual property, the enforceability of intellectual property rights in certain jurisdictions, the length of sales cycles, rapid technological advancement, competition, the availability of critical inputs, foreign exchange rate occurrences, and doing business in foreign countries.

Further, differences could arise due to events that are announced or completed after the date of this presentation, including mergers, asset and corporate acquisitions, other business combinations, and divestitures. More information about the risks and uncertainties affecting Avigilon’s business is provided in the “Risk Factors” sections of each of Avigilon’s final short form prospectus dated March 31, 2014 and Annual Information Form dated March 28, 2014. The foregoing documents are available under Avigilon’s profile on SEDAR at www.sedar.com.

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 or information, 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 and recipients of this presentation should not place undue reliance on forward-looking statements or information. Avigilon undertakes no obligation to reissue or update any forward-looking statements or information as a result of new information or events after the date of this presentation except as may be required by law. All forward-looking statements and information herein are qualified by this cautionary statement.


Our Mission

Be the world’s most trusted business intelligence and security solutions company


We Provide End-to-End Security Solutions

Video Analytics

Video Management Software (VMS)

Network Video Recorders (NVR)

IP Cameras (1MP up to 29MP)

Analog Encoders

Access Control

Internet Local Area Network

NVR w/ VMS

Analog Video Encoder& Analog Cameras

IP Cameras

Access Control


Security Needs are Everywhere

January 2015 | page 5

STADIUMS HOSPITALS CRITICALINFRASTRUCTURE

AIRPORTS PORTS RETAIL

BANKS OFFICES LAW ENFORCEMENT& PRISONS

CASINOS TRANSPORTATION SCHOOL CAMPUSES


Large and Growing Market

Public safety

Asset protection

Liability management

Regulatory compliance

2013 2018E

$17.2B

$31.7B

Source: IHS Research 2013 ($USD)

Global Video Surveillance and Electronic Access Control


Delivering Greater ROI for Customers

Solving the problems that matter most to our customers at a lower total cost of ownership


Superior Image Quality and Coverage


Case Studies: go to http://avigilon.com/case-studies/

640 pixel (px) X 480pxVGA Camera coverage

2592px X 1944px5 MP Camera coverage

6576px X 4384px29 MP Camera coverage

Ten Avigilon 29 megapixel cameras can cover the equivalent of 1,000 VGA cameras.


Detect and Prevent through Video Analytics


User is notified immediately

HD video analytics cameraor appliance detects an intruder

User reviews event via mobile or central station

User respondsin 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


Integrated Access Control

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


Intellectual Property

Patent-protected technology covering:o Video Analytics

o HD Video

o Access Control

213 US and international patents

215 US and international patent applications

We believe we have the strongest patent portfolio in the industry covering video analytics, HD video surveillance, and integrated access control.


Made in North America


~60K sq. ft. Richmond, BCo >C$500M capacity

~40K sq. ft. US Manufacturing Plant Opening in 2015o >C$500M capacity

Key Advantages:o Higher Qualityo New Products to Market Fastero Shorter Lead Timeso IP Protection


Go-to-Market Strategy

Global Reseller Network >2,000 active resellers

Global Sales Team Selling in more than 113 countries Supported by Inside Sales Department and Sales Engineers Business Development Department

o Focused on longer lead time enterprise opportunities


Q3 Revenue, Adjusted EBITDA & Net Income


$ Millions CDN

Revenue

Q3 2013 Q3 2014

51.2

71.0

Adjusted EBITDA

Q3 2013 Q3 2014

12.4

15.7

Net Income

Q3 2013 Q3 2014

8.6

11.6

39% 26% 35%


Revenue


$ Millions CDN

2013 2014

For the nine-month period ended September 30

122.4

191.9

International

North America

Year-ended December 31

5.316.9

32.3

60.0

100.3

178.3

2008 2009 2010 2011 2012 2013

102%CAGR

57%


Adjusted EBITDA and Net Income$ Millions CDN

EBITDA

Net Income

For the nine-month period ended September 30

2013 2014

14.8

22.222.9

35.3

Year-ended December 31

2009 2010 20122011 2013

1.03.8

7.2

21.6

0.42.8

6.6

12.7

34.5

0.0


Delivering Long-term Growth


$500MAnnual revenue run rate target by end of 2016*

>$280MAnnual revenue run rate

Q3 2014*

*$CDN


Growth Strategy

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

Grow engineering team to bring new products and features to market faster

Widen lead over nearest competitors

Continue to identify cost reductions

Consider acquisitions

Increase Brand Awareness Accelerate InnovationExpand Sales Reach

Proven and Successful


Acquisitions to Support Continued Growth

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 includes 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: 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 213 US and international patents, and 215 US and international patent applications

Patent Acquisitions


Summary

Positioned for continued

growth

Strong Team

Proven Strategy

Large & Growing Market

Best-of-Breed Products

Well Financed


Recent Awards

BCTIA Company of the Year2012

TSX Tech Stock of the Year2012

Fastest Growing Canadian Tech Company2012, 2013 & 2014

Leadership Award and Advancing Technology and Innovation 2014

Fastest Growing Tech Company in NA2011, 2012, 2013 & 2014

Fastest Growing Company in Canada2013 & 2014

© 2015 Avigilon Corporation. All rights reserved. No license is granted with respect to any copyright, trademark, patent or other intellectual property rights of Avigilon Corporation or its affiliates.

investor presentation | january...

Documents