INVESTOR PRESENTATION | JANUARY 2016€¦ · 19/02/2016 · INVESTOR PRESENTATION | JANUARY 2016 ... purpose of presenting information about management's current expectations and

© 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


copyright, industrial design, trademark, patent or other IP rights of Avigilon or its licensors.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 facilit ies. 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 Avig ilon’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



Be the world’s most trusted

business intelligence and

security solutions company

Our Mission



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



STADIUMS HOSPITALS CRITICAL

INFRASTRUCTURE

AIRPORTS PORTS RETAIL

BANKS OFFICES LAW ENFORCEMENT

& PRISONS

CASINOS TRANSPORTATION SCHOOL CAMPUSES

Security Needs are Everywhere



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



Solving the problems that

matter most to our customers at

a lower total cost of ownership

Delivering Greater ROI for Customers



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



User is notified

immediately

HD video analytics camera

or 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

Detect and Prevent through Video Analytics



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



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



US Manufacturing Facility operational in Q4 2015o >C$500M capacity

Canadian Manufacturing Facilityo >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



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



$0.24

$0.27

Adjusted EPS

Q3 2014 Q3 2015

16.4

18.9

Adjusted EBITDA

Q3 2014 Q3 2015

71.0

95.1Revenue

Q3 2014 Q3 2015

34%

15% 13%

Q3 Results Summary$ Millions CDN



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

$ M

illio

ns

CD

N

Revenue Adjusted EBITDA Gross Margin Adjusted EBITDA Margin

2012 2013 2014 20152011

Trailing 12 Months PerformanceFor the Period Ended



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



0.3 1.13.9

8.2

24.4

37.2

33.2

39.2

0.42.8

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



YTD 2015(9 months ended September 30, 2015)

2015 Guidance

Revenue $260 million 36% Year-over-Year Growth

$358 - $368 million32%-36% Year-over-Year Growth

Adjusted EPS $0.58 $0.76 - $0.82

Guidance$ CDN



$500MAnnual revenue run rate

target by end of 2016*

$380MAnnual revenue run rate

Q3 2015*

*$CDN

Delivering Long-term Growth



Into new 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

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



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



Positioned for

continued

growth

Strong Team

Proven Strategy

Large & Growing

Market

Best-of-Breed Products

Well Financed

Summary



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


copyright, industrial design, trademark, patent or other IP rights of Avigilon or its licensors.

Thank you!

Documents

INVESTOR PRESENTATION | JANUARY 2016€¦ · 19/02/2016 · INVESTOR PRESENTATION | JANUARY 2016 ... purpose of presenting information about management's current expectations and