Avigilon Investor Presentation

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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

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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

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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


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

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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


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


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


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


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


$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

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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


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

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Revenue

$ Millions CDN 32.3$Year-end Dec. 31

148%CAGR

16.9

International

North America

5.2

0.2


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


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


Attractive business model

• Large software component

• Ownership of intellectual property >40%• Manufacturing costs under our control

>40%Gross margin

• Efficient sales model


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


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


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


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


y g gOne of the “Top 30 Technology Innovations”

complete, end-to-end surveillance system

large growing marketlarge, growing market

t tstrong momentum


Avigilon Investor Presentation

Investor Relations

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