Transcript Axis presentation

MAKE
YOUR
NETWORK
SMARTER
Video growth despite negative
currency effects
Year-end summary 2003
Ray Mauritsson, CEO
Agenda
2003
summary and Axis today
Network video: growth in security
Technology: trends and outlook
Axis’ two main product areas
Network Video Products
 Worldwide
#1 position
 Axis’ largest product area,
57% of sales
 An installed base of more
than 300,000 units
Network Print Servers
 Worldwide
#2 position
 35% of Axis´ sales
 An installed base of more
than 2,000,000 units
Financial performance 2003
Net
sales: SEK 624 M (670)
Currency
effects had a negative
impact of SEK 71 M
Operating
profit: SEK 1 M (40)
Financial highlights 2003
 Growth
for Video
 Decreased sales within Print
 Currency effects
 Weakened gross margin
 Cost-savings program
 14 new patents
Video sales development 1998-2003
SEK M
400
350
300
250
200
150
100
50
0
-98
-99
-00
-01
-02
-03
Gross margin 2002-2003
%
60
50
40
30
20
10
0
Q102
Q202
Q302
Q402
Q1 - Q2 - Q3 - Q4 03
03
03
03
Q1 2004
Continued
growth within Video,
+ 23%
Weakened sales for Print
New generation video products
launched
Sales Q1, 2004
Scan &
Store 3%
Access and
other 5%
Asia
23%
Print
28%
64%
Video
51%
26%
Americas
EMEA
Market size & forecast
Axis market share
in EMEA today:

Network cameras:
59.8%
 Video servers:
35.4%
Factory revenue € million
80
Video
servers
Network
cameras
70
60
50
40
30
20
10
0
-02
-03
-04
-05
-06
-07
-08
IMS Research, ”The EMEA market for CCTV
and Video Surveillance Equipment”
Year 2003 – Success cases in all verticals
Surveillance Solution
Remote Monitoring Solution to
New York State Unified Court System at Dutch School
Car park security in Japan
Network Video improves patient care, Visicu,US
Childcare Cam at Singaporian daycare center
Security in Italian Retail stores Car park security in Germany
Surveillance in Newport School,UK
IP based security in Texas school district, US
Increased safety at Guernesey College, UK
Security at Sydney Airport
Safety for Danish bank
Security cams at 70 bank offices in France
Cameras help UK police cut crime
Axis´network products for U.S federal prison
Swedish monitoring concept in shops
Security solution to New Zealand penitentiary
Missouri school district
implements Network Video
Advanced network surveillance
solutions to Washington, DC Police
Customer segments
Bank
Transportation
Industrial
Retail
Government
Education
Benefits of network video
Remote
access to video
from any location
Low start-up and operating costs
Flexible and scalable solutions
based on open standards
¬
Integration possibilities
A technology shift driving growth
Axis compared with the competition
 Dedicated
to IP solutions
 Global coverage
 Widest range
 Own technology
 Over 150 ADP partners
Axis’ competitive advantage
Own ASIC
and compression chip
Performance, image quality and lower cost
¬ ETRAX and ARTPEC
¬
Experience
9 years of imaging experience
¬ 20 years of networking experience
¬
Only
open standards
Trends - Technology
 Smart
cameras and integrated
systems
 New technology is opening up
possibilities in image quality and
functionalities
Examples:
¬
¬
¬
¬
Megapixel
Pictures scalable to any format
License plate recognition
Digital PTZ
101001010100011101
New generation video products
Aggressive road map
 New
compression techniques
 Higher resolution
 Full frame rate
 Built-in wireless solution
 Power over Ethernet
 Dome cameras
The future of network video
Accelerating
technology shift
”Unlimited” possibilities in
addition to security solutions
New applications
Visicu – eIC
Strategic direction
Maximize
the video
opportunity
Protect the printing
business
Nurture new ideas for
future growth
Outlook 2004
 Continued
growth potential
for Video
 Accelerating technology shift
 An aggressive product road
map
 Restrained development for
Print
 Well positioned for profitable
growth