axis communications a world of intelligent networks first quarter 2001 presented by peter ragnarsson
TRANSCRIPT
AXIS CommunicationsA world of intelligent networks
First quarter 2001 Presented by
Peter Ragnarsson
Axis Group
ThinServers• Printservers• Scan servers• CDservers• Camera servers• Technology
Mobile Internet• Access Points• Mobile Access server
Founded 1984
Listed on Stockholm stock exchange 2000
Founded 1984
Listed on Stockholm stock exchange 2000
Axis AB
Netch 59%(incl new issue 2001)
nBand 11%
ThinServer products
Print & Scan servers Global top 3 on network print
solutions
Camera servers Leader in network camera
and video servers
Storage servers Global n°1 market leader for
CD/DVD servers
Technology network solution platforms
Mobile Internet products
Carrier class total system solutions for local mobile networks based on Bluetoothand WLAN (802.11)
Access Points
Mobile Access Server Subscriber management Security Positioning Network management I/f to billing & customer care systems
Axis history - four distinct phases
1984 1992 1996 2000
IBM protocol conversion
Europe1st phase
2nd phasePrint servers
LAN environm.Asia
3rd phase ThinServers
StorageUSA
4th phaseCamera
Mobile SystemsGlobally
Highlights q1 2001 - Sales
Sales growth following strategic investments Strategic partnerships
Camera
New distribution structure in Europe
Market-oriented organization structure
Highlights q1 2001 - Sales
Sales 176 Mkr (150)
Growth 17% ThinServers: growth 23%
Netch: negative growth -32%
Sales mix q1-2001
Networked Office43%
Mobile Internet
1%
Office Connectivity
OEM18%
Technology0%
Camera30%
Other1%
Netch7%
ThinServer products - sales q1 2001
Total sales 162,5 Mkr (132,4)
Growth total area 22,7%
Strategic investment provides returns
Strategic partnerships Camera New distribution structure in
Europe Market-oriented organization
structure Formation of Network Office and
Office Connectivity OEM completed
Sales(proforma 2000)
0
50
100
150
200
q1 accum
SE
K m
Prev year Current year
Networked Office - sales q1 2001
Total sales 75,5 Mkr (81,3)
Growth -7,1%
New market-oriented organization
Professional buyers
Organizations >50 employees
Decrease in sales due to Storage products
Sales(proforma 2000)
0
25
50
75
100
q1 accum
SE
K m
Prev year Current year
Office Connectivity OEM - sales q1 2001
Total sales 32,0 Mkr (12,2)
Growth 161,4%
Orientation towards industrial customers
First deliveries to Canon of Bluetooth products (AXIS 5800 Mobile) in april 2001
Sales(proforma 2000)
0
25
50
75
100
q1 accum
SE
K m
Prev year Current year
Camera - sales q1 2001
Total sales 52,3 Mkr (29,8)
Growth 75,1%
Cooperation with Honeywell in Taiwan
Solution for remote monitoring of telecom infrastructure
Sales(proforma 2000)
0
25
50
75
100
q1 accum
SE
K m
Prev year Current year
Mobile Internet products - sales q1 2001
Initial order from Canon First deliveries of Axis
9010 Bluetooth™ Access Points in april 2001
Mobile Access Server launched at CEBIT
Sales(proforma 2000)
0,0
2,5
5,0
7,5
10,0
q1 accum
SE
K m
Prev year Current year
Netch - sales q1 2001
Netch is a supplier of strategic Internet services
Axis holds 59% of Netch after the new issue (57,6 Mkr) in February 2001
Peter Ragnarsson Chairman of the Board in Netch from Dec. 2000
Difficult market situation
Sales(proforma 2000)
0
25
50
75
100
q1 accum
SE
K m
Prev year Current year
Highlights q1 2001 - EBIT
Towards profitability as planned Axis (excl. Mobile Internet) up 31,5 Mkr
compared to q1-2000
Heavy R&D investments Mobile Internet 24 Mkr R&D total 38 Mkr
Highlights q1 2001 - EBIT
Extraordinary profit influence Q1-2001 impact -5 Mkr
temporary production problems write-off accounts receivable
Netch impacted by re-structuring costs (announced in December 2000 report)
total amount -31 Mkr
EBIT analysis q1-2001 (proforma q1-2000)
Jan-Mar 2001 Jan-Mar 2000
ThinServer products 0,4 -30,8
Mobile Internet -23,8 -14,2
Corporate functions -9,0 -9,2
SUB-TOTALAxis excl Netch
-32,4 -54,2
Netch -9,3 -2,3
Netch, structural -31,0 --
TOTAL -72,7 -56,5
EBIT by quarter (proforma 2000)
R&D overall 38 Mkr in q1-2001
Investments in Mobile Internet area
24 Mkr in q1-2001
Netch restructuring costs
10 Mkr in q4-2000 31 Mkr in q1-2001
EBIT by quarter (proforma 2000)
-54-45
-37 -41-32
-2
-12-18
-21
-9
-10
-31
-80
-70
-60
-50
-40
-30
-20
-10
0
q1-2000 q2-2000 q3-2000 q4-2000 q1-2001S
EK
m
Axis Netch Netch-structural
ThinServer products - EBIT q1 2001
Profitability in focus
EBIT level improved significantly
Extraordinary profit influence -5 Mkr
temporary production problems
write-off accounts receivable
EBIT by quarter (proforma 2000)
-31
-11-7
1 0
-35
-30
-25
-20
-15
-10
-5
0
5
q1-2000 q2-2000 q3-2000 q4-2000 q1-2001
SE
K m
Mobile Internet products - EBIT q1 2001
Intensive R&D Total investment in
q1-2001 24 Mkr (14)
Investment level reduced during 2001
Technology and market uncertainties
EBIT by quarter (proforma 2000)
-14-19
-21
-34
-24
-40
-35
-30
-25
-20
-15
-10
-5
0
q1-2000 q2-2000 q3-2000 q4-2000 q1-2001
SE
K m
Netch - EBIT q1 2001
Re-structuring program
Re-structuring costs q4 2000: 10 Mkr
q1 2001: 31 Mkr
Focus on reaching profitability in 2001
EBIT by quarter (proforma 2000)
-2
-12-18
-21
-9
-10 -31
-45
-40
-35
-30
-25
-20
-15
-10
-5
0
q1-2000 q2-2000 q3-2000 q4-2000 q1-2001
SE
K m
Highlights q1 2001 - Liquid funds
Liquid funds 198,7 Mkr
Net change in liquid funds +2,7 Mkr
Change in liquid funds - q1 2001
Jan – Mar 2001
Opening balance 196,0
Cash-flow from operations -17,8
Investment in other fixed assets -15,2
Financing activities +35,7
Other --
Closing balance 198,7
Balance sheet - assets
Mar 2001 Dec 2000
Fixed assets 168,1 160,1
Inventories 52,5 60,1
Acc. Receivables 125,8 138,0
Other current rec. 50,2 73,2
Liquid funds 198,7 196,0
TOTAL ASSETS 595,3 627,4
Balance sheet - liabilities & equity
Mar 2001 Dec 2000
Equity 326,0 379,7
Minority -5,8 12,1
Provisions 38,1 15,2
Long-term loans 66,1 51,4
Short-term liab. 170,9 169,0
TOTAL LIAB& EQUITY
595,3 627,4
ThinServer market
ThinServer market
0
2 000
4 000
6 000
8 000
10 000
12 000
1999 2000 2001 2002 2003 2004
US
$ (
mill
ion
s)
IDC predicts sales of ThinServers at more than $11 billion by 2004
Source: IDC
Market trends 2001
Growth potential in Office Connectivity OEM
Camera
Market and technology delays in wireless area
Uncertainty regarding general economic down-turn
Outlook 2001
Priority on profitability and cash-flow Normalization of investment level
Re-structuring of Netch
Axis 2001
Global presence
4th major investment phase completed
Industry insider
Profitable – and growing - base business
Netch re-structured
Proven track record
Axis financial goals
Equity ratio normally not less than 50%
Average annual sales growth of 30% in the five years following the IPO (ending 2005)
Pre-tax margin of 10-15% achieved within three years from the IPO (2003)