From the Ground Up & Back Again �������� ����������������������

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What should I talk about today?

1 Who am I, what is Avante Logixx?

2 Where is the Industry going?

3 Why now, why come back?

Growth, Structure, Threats and Values

Passion and Vision

Then and Now

3

Craig Campbell

• Began in the Security Industry at the age of 17

• Grew from Security Guard, to Manager, to Sales

Executive, to Entrepreneur

• Passionate, experienced and entrepreneurial CEO

• Founder of Total Security Management (TSM) in 2000

• TSM Canada provided services to numerous Fortune

500 clients and grew organically at a 36.4% CAGR to

become Canada’s largest privately held security

services firm

• TSM sold its guard division to Garda World Security

• Upon selling its guard division, TSM was rebranded as

Resilience Capital and converted to an investment

holding company

We are the leading provider of technology enabled security services. We acquire, manage and build industry leading businesses which provide specialized, mission-critical solutions that address the security risks of our customers.

Avante Security Inc.High-End Residential Security

Veridin Systems CanadaEnterprise Security Systems

Intelligarde International Inc.Guard Services

Citywide Locksmiths Ltd.Locksmith Services

ADH Fine HardwareHigh-End Decorative Hardware

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INTO ElectronicsHigh-Rise Security ExpertsClosed August 2014

LVS Inc.Commercial and Residential SecurityClosed April 2015

Architronics Ltd.Smart Home AutomationClosed July 2018

Watermark Security Inc.Security Services | Muskoka RegionClosed August 2018

P L AT F O R M S

1 Proprietary Deal Origination

6

Investment Strategy 2 Accelerate Growth

3 Support Management

4 Investment Structuring

People

ServicesTech Enabled

Why The Security Industry?

Opportunities

Everywhere

Everydayü Cameras

ü Access Controls

ü Intrusion Systems

ü Guards

ü Patrols

ü Video Analytics

ü Employee Background Screenings

ü Corporate Investigations

ü High Security Locks

ü Secure Transport

ü Internet Monitoring

ü Insider Risk Programs

ü Safe & Vault Services

You see a streetscape.

We see infinite potential.

Security is a Megatrend

• Driven by global tension, widening

gap in socioeconomic drivers,

urbanization and digitization.

• Cost of manpower is going up, cost

of technology is going down.

1.Ibisworld Industry Report – “Security Services in Canada” – Nov 20172.Ibisworld Industry Report – “Security Alarm Services in Canada” – April 2017

• Highly fragmented market, ripe for further consolidation

Fragmentated & Active Market

• Active M&A marketplace• Large strategic and PE

participation providing multiple exit opportunities

Active M&A Market

• Proven value-add for clients• Improved service and

reducing costs

Established Value Prop

• Outsourced security services are highly cash generative

• Low capex and working capital requirements

• Average conversion rate of EBITDA to FCF > 85%

Consistent FCF

• Diversified client base• Increased security concerns

supports consistent security spend

Recession Resilient

• Security services industry is a large, stable market

• Revenues of 3.7 billion CAD in 2017

• Security services industry 0.6% CAGR 2017 to 20221

• Security alarm services 2.1% CAGR 2017 to 20222

Macro Trends

M A N P O W E R

T E C H N O L O G Y

“New Players, new technologies have increased risk, raised capital cost and lowered market values”

Market Narrative

But I am not so sure this is entirely correct….

1 Alarm Systems WorkFundamental Growth Drivers Remain Strong

2 Underlying Technologies Improving (at lower cost)

3 Penetration Rates Remain Relatively Low

4 Industry Remains “Of Interest” to a Wide Audience

5 Insurance Industry and Regulators Support Use

6 New Technologies Broadening the Market

7 Increased Industry Sophistication, and Improved Marketing

Source/Credit: Barnes Associates

Total Revenue - 20 Year View

$-

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

$70.00

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Revenue

8 % C A G R

6 % C A G R

Source/Credit: Barnes Associates

Threats—Real or Perceived

ADT & BrinksValuation

Google & Amazon

Impact on Pricing Margins Attrition Growth!

Evolving Technology

DIY

Alarmist Clock

Source/Credit: Barnes Associates

In Closing

• The industry exhibits significant

fragmentation

• Forecasts establish strong macro trends

• Proven recession resilient business model

• Active M&A market place with large strategic

and PE sponsor participation

• Established value proposition driving long term

clientele and consistent FCF

It’s a great time to be in this business• Growth remains strong

• New technologies and applications expanding

the market

• Key performance metrics remain strong

If you can:• Handle the increasing operating complexity

• Be nimble and adaptable to change

• Raise Capital

RELENTLESSLY SECURING PEACE OF MIND