Avigilon provides an investor presentation that contains forward-looking statements and discusses risks. It summarizes Avigilon's complete HD video surveillance solution, the growing security market, and Avigilon's financial performance and growth strategy. Avigilon has experienced strong revenue growth, expanding international sales, and increasing market share through innovative products and an effective distribution model.
2. Forward-looking statements
This presentation contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-
looking information may include, but is not limited to, information with respect to the developments in Avigilon’s operations in future
periods, the adequacy of Avigilon’s financial resources, costs and timing of development and Avigilon’s executive compensation
approach and practice. Wh
h d ti Wherever possible, words such as “ l
ibl d h “plans”, “
” “expects” or “d
t ” “does not expect”, “b d t” “ h d l d” “ ti t ”
t t” “budget”, “scheduled”, “estimates”,
“forecasts”, “anticipate” or “does not anticipate”, “believe”, “intend” and similar expressions or statements that certain actions, events or
results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, have been used to identify forward-looking information.
Forward-looking information is subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual
events or results to differ from those expressed or implied by the forward-looking information, including, without limitation, those
described under “Risk Factors” in the Prospectus and the following: reduced spending by the Corporation’s customers that result from
Risk Factors Corporation s
changes in spending policies or budget priorities; the Corporation’s ability to manage risks inherent in foreign operations; the
Corporation’s ability to protect its brand; the Corporation’s ability to obtain products and parts from suppliers on a timely basis and on
favorable terms; the Corporation’s ability to manage its manufacturing and logistical services successfully; the reliability of product
manufacturing and assembly and logistical services provided by third parties; possible changes in the demand for the Corporation’s
products; the Corporation’s ability to successfully execute its business strategies; the Corporation’s ability to establish new
relationships and t b ild on it existing relationships with i t
l ti hi d to build its i ti l ti hi ith integrators and d l
t d dealers; and th C
d the Corporation’s ability t manage cash fl
ti ’ bilit to h flow,
foreign exchange risk and working capital.
This list is not exhaustive of the factors that may affect any of the Corporation’s forward-looking information. Although Avigilon has
attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking
information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance
that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such
accurate
information. Forward-looking information involves statements about the future and is inherently uncertain, and Avigilon’s actual
achievements or other future events or conditions may differ materially from those reflected in the forward-looking information due to a
variety of risks, uncertainties and other factors, including, without limitation, those referred to in the Prospectus under the heading “Risk
Factors” and elsewhere in the Prospectus. Avigilon’s forward-looking information is based on the beliefs, expectations and opinions of
management on the date the statements are made, and the Corporation does not assume any obligation to update forward-looking
information, whether as a result of new information, future events or otherwise, other than as required by applicable l
i f ti h th lt f i f ti f t t th i th th i db li bl law. F th
For the
reasons set forth above, prospective investors should not place undue reliance on forward-looking information.
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4. CRITICAL
STADIUMS HOSPITALS INFRASTRUCTURE AIRPORTS
PORTS RETAIL BANKS OFFICES
LAW ENFORCEMENT
& PRISONS CASINOS Private and confidential
TRANSPORTATION SCHOOL CAMPUS 4
5. Demand for surveillance systems increasing
• Public security
• Theft prevention
• Liability management
$29B
• Greater efficiency $16B
• Asset monitoring
• Regulatory compliance
2011 2015
Source: “The Video Surveillance Market,” ABI Research, 2010
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6. Market shifting to IP technology
Worldwide Video Surveillance Camera
Revenue Forecast by Type
16
$ Billions US
14
12
10
8
IP
6
4
Analog
A l
2
0
2008 2009 2010 2011 2012 2013 2014 2015
Source: ABI Research
Private and confidential 6
7. >80% HD for
is ideal
of video surveillance systems sold
y
today are still analog/digital hybrid today’s
t d ’ needs
d
Source: ABI Research Private and confidential 7
8. Conditions for HD to overtake analog
Cost
Compatibility
p y
Ease of Integration
Private and confidential 8
9. Avigilon has the complete solution
HD CAMERAS HD STORAGE CONTROL CENTER SOFTWARE
PROPRIETARY SOFTWARE
• First and only 29 MP • Visually lossless • Easy to use,
HD camera – replaces reproduction live/recorded
95 conventional viewing
cameras • Lower bandwidth/
storage requirements • Quick image
• Widest range of retrieval
multi-MP
multi MP cameras
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10. Avigilon’s advantage: HDSM (High-Definition Stream Management)
HDSM preserves complete i
l image i
integrity:
i
Visually lossless
Visually lossless Bandwidth-optimized
Bandwidth-optimized Intelligent image
Intelligent image
compression
compressioni transmission
transmission
t i i capture & storage
capture & storage
t t
The full HD image
Conventional systems compress data and degrade the image:
Conventionall
Conventional
C ti
Lossy compression
Lossy compression Limited storage
Limited storage
transmission
transmission
Very little image info left
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11. Key benefits of the Avigilon system
• U
Unmatched i
t h d image quality
lit
• Easier installation
• E
Ease of use
f
Superior
• Scalability
image detail
• C
Compatible with legacy infrastructure
f and value
• Lower bandwidth/storage requirement
• Fewer cameras needed
• Competitive price
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12. decrease in
more efficient
monitoring of ports 30 minutes faster
response time 75% investigation
times
ASSOCIATED BRITISH PORTS VANCOUVER 2010 OLYMPICS EXEMPLA MEDICAL CENTER
$10M saved
annually 75% drop in
criminal reports 35% reduction in
personnel
OKLAHOMA COUNTY SELMA, ALABAMA M.M. ROBERTS STADIUM
DETENTION CENTER RESIDENTIAL and confidential
Private BUILDING 12
13. Effective distribution model
Sell through security
equipment dealers and
integrators
• >800 active relationships
>160,000
>160 000
• Deployed in >80 countries
camera and
software
• Top dealers in each market
licenses
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15. Revenue
$ Millions CDN 32.3
Year-end Dec. 31
148%
CAGR
16.9
International
North America
5.2
0.2
2007 2008 2009 2010
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16. Year-to-date revenue
$ Millions CDN
89% 26.1
26 1
Six months ended June 30 GROWTH
16.0
13.8
8.3 Q2
Q1
10.0
5.5
2010 2011
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17. Net income
$ Millions CDN
Year-end Dec. 31
1.5
1.2
0.3
0.0
FY/09 FY/10 H1/10 H1/11
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18. Attractive business model
• Large software component
• Ownership of intellectual
property
• Manufacturing costs under
our control
>40%
Gross margin
• Efficient sales model
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19. Growth strategy
Expand sales capabilities
p p
• Add personnel in new territories
• Open additional branch offices
Build awareness through branding & marketing
• Increase participation in industry trade shows
• Targeted marketing to decision-makers in key verticals
Accelerated product innovation
• Release more new products
• Additional enhancements to existing products
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20. Executive Management Team
ALEXANDER WAN ANDREW B R YA N KEITH
FERNANDES JUNG MARTZ SCHMODE MARETT
President & CEO CFO COO VP Global Sales Director, Marketing &
Communications
Co-founded Avigilon Co-founded Avigilon Experience 15 years experience 15 years experience
in 2004 in 2004 in software in security industry
y y creating & executing
g g
development, digital successful marketing
20 years experience VP Finance Successful sales to
camera design and campaigns
in high end digital at QImaging Fortune 500 and
manufacturing
imaging government Bell Canada, Suzuki,
14 years with QImaging, PGR, Starbucks, Canfor
Successfully founded NIKE Canada Broadware(CISCO),
Electronic Arts
and grew QI
d QImaging
i Verint,
V i t NICE
Experienced
Creo Products corporate director
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21. Board of Directors
ALEXANDER FERNANDES President & CEO, Avigilon
, g
Chairman
WAN JUNG CFO, Avigilon
HARRY JAAKO President, Discovery Capital Management Corp
Director, TMX Group
Chairman, Paradigm Environmental Technologies
BRUCE MARGINSON President, Fusion Security Inc.
, y
MURRAY TEVLIN Lawyer,TevlinGleadle
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22. Track record of innovation & leadership
Frost & Sullivan 2010
Global New Product Innovation Award – video surveillance market
Deloitte Technology Fast 500
Fastest-growing software company in North America (#4 overall)
g g p y ( )
Red Herring Global 2010
One of the top 100 private companies in the world
GSN Homeland Security Award 2010
Most ff ti Municipal County S
M t effective M i i l or C t Security P
it Program, P j t or A
Project Agency, 2010
Security Sales & Integration Magazine 2009
y g g
One of the “Top 30 Technology Innovations”
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