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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. Forward-Looking Statements Certain 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 forwardlooking 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. © 2015 Avigilon Corporation. All rights reserved. January 2015 | page 2 No license is granted with respect to any copyright, trademark, patent or other intellectual property rights of Avigilon Corporation or its affiliates. Our Mission Be the world’s most trusted business intelligence and security solutions company © 2015 Avigilon Corporation. All rights reserved. January 2015 | page 3 No license is granted with respect to any copyright, trademark, patent or other intellectual property rights of Avigilon Corporation or its affiliates. We Provide End-to-End Security Solutions IP Cameras Video Analytics Video Management Software (VMS) Network Video Recorders (NVR) IP Cameras (1MP up to 29MP) Analog Encoders Access Control NVR w/ VMS Internet Local Area Network Analog Video Encoder & Analog Cameras Access Control © 2015 Avigilon Corporation. All rights reserved. January 2015 | page 4 No license is granted with respect to any copyright, trademark, patent or other intellectual property rights of Avigilon Corporation or its affiliates. Security Needs are Everywhere STADIUMS HOSPITALS CRITICAL INFRASTRUCTURE AIRPORTS PORTS RETAIL BANKS OFFICES LAW ENFORCEMENT & PRISONS CASINOS TRANSPORTATION SCHOOL CAMPUSES © 2015 Avigilon Corporation. All rights reserved. January 2015 | page 5 No license is granted with respect to any copyright, trademark, patent or other intellectual property rights of Avigilon Corporation or its affiliates. Large and Growing Market Global Video Surveillance and Electronic Access Control Public safety $31.7B Asset protection Liability management Regulatory compliance $17.2B 2013 2018E Source: IHS Research 2013 ($USD) © 2015 Avigilon Corporation. All rights reserved. January 2015 | page 6 No license is granted with respect to any copyright, trademark, patent or other intellectual property rights of Avigilon Corporation or its affiliates. Delivering Greater ROI for Customers Solving the problems that matter most to our customers at a lower total cost of ownership © 2015 Avigilon Corporation. All rights reserved. January 2015 | page 7 No license is granted with respect to any copyright, trademark, patent or other intellectual property rights of Avigilon Corporation or its affiliates. Superior Image Quality and Coverage Case Studies: go to http://avigilon.com/case-studies/ 6576px X 4384px 640 pixel (px) X 480px 2592px X 1944px VGA Camera coverage 5 MP Camera coverage 29 MP Camera coverage Ten Avigilon 29 megapixel cameras can cover the equivalent of 1,000 VGA cameras. © 2015 Avigilon Corporation. All rights reserved. January 2015 | page 8 No license is granted with respect to any copyright, trademark, patent or other intellectual property rights of Avigilon Corporation or its affiliates. Detect and Prevent through Video Analytics HD video analytics camera or appliance detects an intruder User is notified immediately User reviews event via mobile or central station Talk down via phone & camera-linked speaker User responds in real-time Intruder flees or is apprehended or On-site security, central station or law enforcement called to respond © 2015 Avigilon Corporation. All rights reserved. January 2015 | page 9 No license is granted with respect to any copyright, trademark, patent or other intellectual property rights of Avigilon Corporation or its affiliates. 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 © 2015 Avigilon Corporation. All rights reserved. January 2015 | page 10 No license is granted with respect to any copyright, trademark, patent or other intellectual property rights of Avigilon Corporation or its affiliates. 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. © 2015 Avigilon Corporation. All rights reserved. January 2015 | page 11 No license is granted with respect to any copyright, trademark, patent or other intellectual property rights of Avigilon Corporation or its affiliates. Made in North America ~60K sq. ft. Richmond, BC o >C$500M capacity ~40K sq. ft. US Manufacturing Plant Opening in 2015 o >C$500M capacity Key Advantages: Higher Quality o New Products to Market Faster o Shorter Lead Times o IP Protection o © 2015 Avigilon Corporation. All rights reserved. January 2015 | page 12 No license is granted with respect to any copyright, trademark, patent or other intellectual property rights of Avigilon Corporation or its affiliates. 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 © 2015 Avigilon Corporation. All rights reserved. January 2015 | page 13 No license is granted with respect to any copyright, trademark, patent or other intellectual property rights of Avigilon Corporation or its affiliates. Q3 Revenue, Adjusted EBITDA & Net Income $ Millions CDN Adjusted EBITDA Revenue Net Income 11.6 15.7 71.0 39% 12.4 26% 51.2 Q3 2013 Q3 2014 Q3 2013 Q3 2014 © 2015 Avigilon Corporation. All rights reserved. January 2015 | page 14 35% 8.6 No license is granted with respect to any copyright, trademark, patent or other intellectual property rights of Avigilon Corporation or its affiliates. Q3 2013 Q3 2014 Revenue $ Millions CDN 191.9 178.3 57% 122.4 102% CAGR 100.3 60.0 32.3 International 16.9 5.3 2008 North America 2009 2010 2011 2012 2013 Year-ended December 31 2013 For the nine-month period ended September 30 © 2015 Avigilon Corporation. All rights reserved. January 2015 | page 15 2014 No license is granted with respect to any copyright, trademark, patent or other intellectual property rights of Avigilon Corporation or its affiliates. Adjusted EBITDA and Net Income $ Millions CDN 35.3 34.5 22.9 21.6 22.2 14.8 12.7 6.6 0.0 0.4 1.0 2009 2.8 7.2 3.8 EBITDA Net Income 2010 2011 2012 2013 2013 For the nine-month period ended September 30 Year-ended December 31 © 2015 Avigilon Corporation. All rights reserved. January 2015 | page 16 2014 No license is granted with respect to any copyright, trademark, patent or other intellectual property rights of Avigilon Corporation or its affiliates. Delivering Long-term Growth >$280M Annual revenue run rate Q3 2014* $500M Annual revenue run rate target by end of 2016* *$CDN © 2015 Avigilon Corporation. All rights reserved. January 2015 | page 17 No license is granted with respect to any copyright, trademark, patent or other intellectual property rights of Avigilon Corporation or its affiliates. Growth Strategy Proven and Successful Expand Sales Reach Increase Brand Awareness Accelerate Innovation Into new markets Expanded trade show presence Grow engineering team to bring new products and features to market faster o APAC and LATAM Increase coverage in established markets o NA and EMEA Focused marketing initiatives Strategic advertising Continue to identify cost reductions Grow Business Development Department Consider acquisitions © 2015 Avigilon Corporation. All rights reserved. January 2015 | page 18 Widen lead over nearest competitors No license is granted with respect to any copyright, trademark, patent or other intellectual property rights of Avigilon Corporation or its affiliates. Acquisitions to Support Continued Growth Patent Acquisitions US$17M acquisition of RedCloud Security, Inc. in May 2013 US$31M acquisition of VideoIQ, Inc. in January 2014 Innovative provider of web-based, physical and virtual access control systems Leader in real-time intelligent video analytics Open IP platform; integrates physical security with identity management US$80M acquisition of the entire patent portfolio and patent licensing program of ObjectVideo, Inc. in December 2014 Commercially proven, proprietary technology includes live detection, event verification and self-learning IP Portfolio includes 2 patents and 2 patents pending Strong IP portfolio: 40 patents granted or pending internationally Fully integrated into Avigilon system in January 2014 and rolled out as Avigilon Access Control Manager Experienced development team Full three phase integration expected to be complete in 12-18 months © 2015 Avigilon Corporation. All rights reserved. January 2015 | page 19 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 No license is granted with respect to any copyright, trademark, patent or other intellectual property rights of Avigilon Corporation or its affiliates. o Summary Strong Team Proven Strategy Large & Growing Market Best-of-Breed Products Positioned for continued growth Well Financed © 2015 Avigilon Corporation. All rights reserved. January 2015 | page 20 No license is granted with respect to any copyright, trademark, patent or other intellectual property rights of Avigilon Corporation or its affiliates. Recent Awards Fastest Growing Tech Company in NA 2011, 2012, 2013 & 2014 Leadership Award and Advancing Technology and Innovation 2014 Fastest Growing Canadian Tech Company 2012, 2013 & 2014 TSX Tech Stock of the Year 2012 © 2015 Avigilon Corporation. All rights reserved. January 2015 | page 21 No license is granted with respect to any copyright, trademark, patent or other intellectual property rights of Avigilon Corporation or its affiliates. Fastest Growing Company in Canada 2013 & 2014 BCTIA Company of the Year 2012 © 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.