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I N V E S T O R P R E S E N T A T I O N
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
h d ti Wh ibl d h “ l ” “ t ” “d t t” “b d t” “ h d l d” “ ti t ”approach and practice. Wherever possible, words such as “plans”, “expects” or “does not expect”, “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 fromdescribed under Risk Factors in the Prospectus and the following: reduced spending by the Corporation s customers that result from 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
l ti hi d t b ild it i ti l ti hi ith i t t d d l d th C ti ’ bilit t h flrelationships and to build on its existing relationships with integrators and dealers; and the Corporation’s ability to manage cash 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 suchthat such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such 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 i f ti h th lt f i f ti f t t th i th th i d b li bl l F th
2Private and confidential
information, whether as a result of new information, future events or otherwise, other than as required by applicable law. For the reasons set forth above, prospective investors should not place undue reliance on forward-looking information.
Security concerns are growing around the worldgrowing around the world
3Private and confidential 3
CRITICALAIRPORTS
CRITICAL INFRASTRUCTUREHOSPITALSSTADIUMS
OFFICESBANKSRETAILPORTS
4Private and confidential SCHOOL CAMPUSTRANSPORTATIONCASINOSLAW ENFORCEMENT& PRISONS 4
Demand for surveillance systems increasing
• Public security
$29B• Theft prevention
• Liability management$29B
• Greater efficiency
• Asset monitoring$16B
• Regulatory compliance2011 2015
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Source: “The Video Surveillance Market,” ABI Research, 2010
Market shifting to IP technology
Worldwide Video Surveillance Camera Revenue Forecast by TypeRevenue Forecast by Type
$ Billions US 16
10
12
14
IP
A l4
6
8
Analog
2008 2009 2010 2011 2012 2013 2014 20150
2
6Private and confidential
Source: ABI Research
>80% HD>80%of video surveillance systems sold is ideal for
t d ’ d
HD7Private and confidential
ytoday are still analog/digital hybrid today’s needsSource: ABI Research 7
Conditions for HD to overtake analog
Cost
Compatibilityp y
Ease of Integration
8Private and confidential
Avigilon has the complete solution
HD CAMERAS HD STORAGE CONTROL CENTER SOFTWARE
P R O P R I E T A R Y S O F T W A R E
• First and only 29 MP HD camera – replaces
• Visually lossless reproduction
• Easy to use, live/recorded
95 conventional cameras
• Widest range of multi MP cameras
• Lower bandwidth/ storage requirements
viewing
• Quick image retrieval
9Private and confidential
multi-MP cameras
Avigilon’s advantage: HDSM(High-Definition Stream Management)
HDSM l i i i
Visually lossless i
Bandwidth-optimized t i i
Intelligent image t & t
HDSM preserves complete image integrity:
Visually lossless compression
Bandwidth-optimized transmission
Intelligent image capture & storagecompression transmission capture & storage
The full HD image
compression transmission capture & storage
C ti l
The full HD image
Conventional systems compress data and degrade the image:
ConventionalConventional transmission Limited storageLossy compression
Conventional transmission Limited storageLossy compression
10Private and confidential
Very little image info left
Key benefits of the Avigilon system
U t h d i lit• Unmatched image quality• Easier installation
E f• Ease of use• Scalability
C f
Superior image detail
• Compatible with legacy infrastructure• Lower bandwidth/storage requirement
and value
• Fewer cameras needed • Competitive price
11Private and confidential
more efficient monitoring of ports 75%75% decrease in
investigation times3030 minutes faster
response time
ASSOCIATED BRITISH PORTS EXEMPLA MEDICAL CENTERVANCOUVER 2010 OLYMPICS
$10$10MM saved 75%75% drop in 35%35% reduction in
12Private and confidential
$10$10MMOKLAHOMA COUNTY DETENTION CENTER
saved annually 75%75%
SELMA, ALABAMARESIDENTIAL BUILDING
drop in criminal reports 35%35%
M.M. ROBERTS STADIUM
reduction in personnel
12
Effective distribution model
Sell through security equipment dealers and >160 000integrators
• >800 active relationships>160,000
camera and• Deployed in >80 countries
• Top dealers in each market
camera and software licenseslicenses
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F I N A N C I A L R E V I E WF I N A N C I A L R E V I E W
14
Revenue
$ Millions CDN 32.3$Year-end Dec. 31
148%CAGR
16.9
International
North America
5.2
0.2
15Private and confidential
2007 2008 2009 2010
Year-to-date revenue
$ Millions CDN 26 189%$Six months ended June 30
26.189%GROWTH
16.0
13.8
8.3 Q2
Q1
5.510.0
16Private and confidential
20112010
Net income
$ Millions CDN$ Millions CDNYear-end Dec. 31
1.5
1.2
0.3
FY/09 FY/10 H1/10 H1/11
0.0
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Attractive business model
• Large software component
• Ownership of intellectual property >40%• Manufacturing costs under our control
>40%Gross margin
• Efficient sales model
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Growth strategy
Expand sales capabilitiesp 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
19Private and confidential
Additional enhancements to existing products
Executive Management Team
A L E X A N D E R F E R N A N D E S
WA N J U N G
A N D R E W M A R T Z
B R YA N S C H M O D E
K E I T H M A R E T TF E R N A N D E S
President & CEO
Co-founded Avigilonin 2004
J U N G
CFO
Co-founded Avigilonin 2004
M A R T Z
COO
Experience in software
S C H M O D E
VP Global Sales
15 years experience in security industry
M A R E T T
Director, Marketing & Communications
15 years experience creating & executing
20 years experience in high end digital imaging
Successfully founded d QI i
VP Finance at QImaging
14 years with NIKE Canada
development, digital camera design and manufacturing
QImaging, PGR, Electronic Arts
y y
Successful sales to Fortune 500 and government
Broadware(CISCO),V i t NICE
g gsuccessful marketing campaigns
Bell Canada, Suzuki, Starbucks, Canfor
20Private and confidential
and grew QImaging
Creo ProductsExperiencedcorporate director
Verint, NICE
Board of Directors
ALEXANDER FERNANDES President & CEO, AvigilonChairman
& , g
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
21Private and confidential
Track record of innovation & leadership
Frost & Sullivan 2010 Global New Product Innovation Award – video surveillance market
Deloitte Technology Fast 500Fastest-growing software company in North America (#4 overall)
Red Herring Global 2010 One of the top 100 private companies in the world
g g p y ( )
GSN Homeland Security Award 2010 M t ff ti M i i l C t S it P P j t A 2010
One of the top 100 private companies in the world
Security Sales & Integration Magazine 2009
Most effective Municipal or County Security Program, Project or Agency, 2010
22Private and confidential
y g gOne of the “Top 30 Technology Innovations”
complete, end-to-end surveillance system
large growing marketlarge, growing market
t tstrong momentum
2323Private and confidential