Transcript Axis presentation

Axis’ growth keeps
pace with the market
January- December 2007
Ray Mauritsson, CEO
Fredrik Sjöstrand, CFO
Today's agenda
This is Axis
2007 – another year of growth
Financial
The focus and future in network video
Outlook 2008
This is Axis
Founded in 1984
An IT-company driving the network video market
Worldwide presence in 18 countries, 564 employees*
Product areas,
Network Video Solutions
Network Print Servers
Global partnerships through distributors,
resellers and system integrators
Listed on OMX Nordic Exchange, Stockholm
Large Cap and Information, Technology exchanges
* Year-end, 2007
Highlights January-December, 2007
Total net sales 1 671 (1 202) MSEK
Total growth + 39%
Stable growth within video + 44%
Growth in all regions
High activity in the market
 Adding orders to previously announced installations
 High interest in Transportation and Retail.
Axis global market leader in network video
Worldwide presence – close to the customers
Offices in 18 countries
 Headquarters
Sales in more than 70 countries
 Regional Headquarters
 Regional Offices
Sales January - December, 2007
 Growth 39%
 Currency effects - 88 MSEK
Video sales
 1 530 MSEK (1 061)
 Growth 44%
500
450
400
350
300
250
200
150
100
50
0
Growth
90%
Video sales
Video growth
Total growth
120
Q 06
220
Q 06
320
Q 06
420
Q 06
120
Q 07
220
Q 07
320
Q 07
420
07
 1 671 MSEK (1 202)
MSEK
Q
Total sales
80%
70%
60%
50%
40%
30%
20%
10%
0%
Operating expenses
Q4,
2007
Q3,
2007
Q2,
2007
Q1,
2007
Q4,
2006
Selling and marketing
costs
-85 388
-79 902
- 76 059
- 66 112
-67 746
Administrative costs
-16 911
- 14 525
-13 915
- 16 322
-14 932
Research and
development costs
-61 187
- 44 626
- 44 566
-43 015
-44 996
-163 436
- 139 053
-134 540 - 125 449
-127 674
Total costs
EBIT and Gross margin
Gross margin
 55,2% (55,2%)
MSEK
100
90
EBIT
Gross margin
EBIT margin
Margin
100%
90%
70
70%
 21,8% (20,4%)
60
60%
50
50%
Profit margin
40
40%
 21,8% (20,3%)
30
30%
20
20%
10
10%
0
0%
Q
120
Q 06
220
Q 06
320
Q 06
420
Q 06
120
Q 07
220
Q 07
320
Q 07
420
07
Operating margin
80
Q4 2007
80%
Sales in the product areas
Q4 2007
Sales in the regions
Americas
Q4, 2007
EMEA
Asia
Shareholder structure*
Name
Number of Shares
Percentage
Therese Karlsson privately and through company
(LMK Industri)
13,830,408
19.9%
Christer Brandberg privately and through company
(Inter indu S.P.R.L.)
9,606,957
13.8%
Martin Gren through company (Grenspecialisten AB)
7,157,471
10.3%
Swedbank Robur
5,100,445
7.4%
Unionen (fd SIF)
1,560,400
2.2%
Other 11,634 shareholders
32,116,519
46.4%
TOTAL
69,372,200
* December 31, 2007
Customer segments
Banking & Finance
Education
Government
Industrial
Retail
Transportation
Global distribution and sales
Distributors
Resellers
System integrators
End user
The market’s broadest video portfolio
Fixed cameras & domes
AXIS 223M
AXIS 221
AXIS 225FD
AXIS 216MFD/216MFD-V
AXIS 211M
AXIS 216FD/216FD-V
AXIS 211W
AXIS 211/211A
AXIS 210/210A
AXIS 209FD-R
AXIS 209FD/209MFD
AXIS 207MW
AXIS 207/207W
AXIS 206
PTZ cameras & domes
AXIS 233D
AXIS 232D+
AXIS 231D+
AXIS 214 PTZ
AXIS 213 PTZ
AXIS 215 PTZ
AXIS 212 PTZ
Video encoders/
decoders
AXIS 243Q
AXIS 243SA
AXIS 241QA
AXIS 241Q
AXIS 241S
AXIS 247S
AXIS 240Q
AXIS 291 1U Rack
AXIS 3U Rack
Management SW
AXIS Camera Station
AXIS Camera Mgmt
ADP > 400 Partners
AXIS 262+ NVR
Accessories
Emerging market trends
Megapixel
Compression
Intelligence
Megapixel: better quality or better coverage
Analog cameras
Megapixel network camera
One 2.0 megapixel camera covers a much larger scene than
four 4CIF cameras, with maintained number of pixels per area
Compression in the future
The direction is clear
Proper terminology
 MPEG-4 Part 10 (Official MPEG name)
– ISO/IEC 14496-10 AVC
 H.264 (Official ITU name)
– ITU-T H.264
Applications
 Video surveillance
 Entertainment video
 Telecom
 Streaming services
Video Analytics at Axis
Variety of applications
 Prohibited Area Protection, Virtual Fence Alarms,
Motion Tracking, People Counting, Left Item
Detection, Loitering, Queue Management, Fire and
Smoke Detection, and much more.
Axis invites the Video Analytics companies to
our open platforms
 Creating Video Analytics capable Network
Cameras and Encoders
 A Certification Program to ensure the product
quality is maintained
IMS Research*
All video surveillance equipment
Axis is no. 8, compared with 12 in the preceding report
Security cameras category
Axis is no.4, compared with 8 in the preceding report
Axis the global market leader
32% market share for network cameras
Network Video
Growth at an annual rate of 40 percent
* The world market for CCTV & Video Surveillance Equipment, 2007 edition.
Market shares for Video Surveillance Eq. in 2006
2006 Rank
Supplier
1
Pelco
2
Panasonic System Solutions (PSS)
3
Bosch Security Systems
4
GE Security
5
Honeywell
6
Tyco Fire & Security
7
Samsung Electronics
8
Axis
9
Sony
10
Mitsubishi
Others
* The world market for CCTV & Video Surveillance Equipment, 2007 edition.
Marketshares for all cameras in 2006
2006 Rank
Supplier
1
Panasonic Communications Company (PCC)
2
Pelco
3
Bosch
4
Axis
5
Sony
6
Samsung Electronics
7
Honeywell
8
GE Security
9
Tyco Fire & Security
=10
CBC
=10
Sanyo
Others
* The world market for CCTV & Video Surveillance Equipment, 2007 edition.
Market shares for network cameras in 2006
2006 Rank
Supplier
1
Axis
2
Sony
3
Panasonic Communications Company (PCC)
4
Mobotix
5
D-Link
6
Panasonic System Solutions (PSS)
7
Canon
8
Vivotek
9
DVTEL
10
Toshiba
Others
* The world market for CCTV & Video Surveillance Equipment, 2007 edition.
2006 Share
32.0%
Future outlook
Focused product range
 Aggressive product development
Growth
40%
 Intelligent solutions
Focused business model
 Loyalty in channel partnerships
Growth
10%
Focused company
CCTV
Network
Video