Zedcor (ZDC) Investor Presentation summary

Business overview and market positioning

• Provides turnkey surveillance solutions via MobileyeZ towers, serving 400+ customers across North America with a fleet of 1,200+ units as of Q3 2024.

• Disrupts traditional security by leveraging AI-enabled hardware and centralized 24/7 monitoring, offering cost-effective and superior outcomes.

• Market leader in Canada, expanding rapidly in the U.S. with a service center in Houston and plans to grow the U.S. fleet to 400+ by year-end 2024.

• Addresses a >$10B North American market opportunity, with technology-enabled solutions still in early adoption stages.

• Recurring revenue model with over 80% of revenue recurring and utilization rates above 90%.

Financial performance and growth

• Achieved a 47% revenue CAGR and 50% adjusted EBITDA CAGR over five years, with revenue reaching $28.5M and adj. EBITDA $9.4M in LTM Q3 2024.

• Adjusted EBITDA margin exceeded 30% in 2023 and reached 37% in Q3 2024, supported by stable gross margins (~65%) and low maintenance capex.

• 18–24 month payback period on new MobileyeZ units, with an estimated 22% ROIC.

• Well-funded for growth with $24M+ in credit facilities and a $15M equity raise in May 2024; diluted market cap of $330.2M and enterprise value of $339.3M as of Nov 2024.

• Strong insider ownership (~40%) and analyst coverage from major firms.

Product innovation and technology

• MobileyeZ portfolio includes solar hybrid, electric, and solar electric towers, all with AI-enabled cameras, battery backup, and remote monitoring.

• Solutions are 25–60% cheaper than security guards, with advanced sensors and customizable features for diverse client needs.

• Proprietary software and hardware, with continuous upgrades and in-house manufacturing to reduce costs and bottlenecks.

• Demonstrated effectiveness: 98% crime deterrence rate and significant reductions in theft and incidents for blue-chip clients.

• ESG focus with market leadership in low-emission, solar-powered security units.