axis communications a world of intelligent networks second quarter 2001
DESCRIPTION
AXIS Communications A world of intelligent networks Second quarter 2001. Presented by Peter Ragnarsson. Positioning Axis for profitability. Axis will be profitable second half of 2001. Highlights - Structure. Clear structure Netch sold Mobile Access Server sold - PowerPoint PPT PresentationTRANSCRIPT
AXIS CommunicationsA world of intelligent networks
Second quarter 2001 Presented by
Peter Ragnarsson
Positioning Axis for profitability
Axis will be profitable second half of 2001
Highlights - Structure
Clear structure Netch sold
Mobile Access Server sold
Focus on network connectivity
Highlights - EBIT
-57 -55 -62
-42-29
-10-31
-20
-80
-70-60
-50
-40
-30-20
-10
0
q2-00 q3-00 q4-00 q1-01 q2-01
EBIT Structural
Highlights - Sales
Half year 2001 Sales 353 Mkr (320)
Growth 10% ThinServers: +17% Netch: -45% (sold)
Sales(proforma 2000)
50
100
150
200
250
300
350
400
q2 accum
SE
K m
Prev year Current year
Highlights - Sales
Axis grows in weak IT-market Global company
Market positions
Product portfolio
Broad customer base
Distribution channels
Highlights - EBIT
Reduced production costs Productions problems solved
Positive impact 3-5 percentage units
Reduced overhead cost level Costs down >100 M annually
Profitability second half of 2001
Segments
Networked Office Professional buyers
Organizations >50 employees
Office connectivity OEM Industrial customers
Camera IT
Security / surveillance
Technology
Mobile Internet
Networked Office - sales q2 2001
Total sales 73.4 Mkr (81.5)
Growth –9.9%
Strategic segment
Profitable base
Sales(proforma 2000)
0
25
50
75
100
125
150
175
q2 accum
SE
K m
Prev year Current year
Office Connectivity OEM - sales q2 -01
Total sales 34.9 Mkr (21.7)
Growth 60.8%
Continuous demand for built-in printserver solutions
Sales(proforma 2000)
0
25
50
75
100
125
150
175
q2 accum
SE
K m
Prev year Current year
Camera - sales q2 2001
Total sales 56.5 Mkr (44.4)
Growth 27.3%
Launch Axis 2420
Collaboration with Milestone
Sales(proforma 2000)
0
25
50
75
100
125
150
175
q2 accum
SE
K m
Prev year Current year
Camera
New order approx. $ 1 M Mexican Election Authority (Instituto
Federal Electoral)
Axis Network Cameras part of integrated solution for producing Mexican ID-cards
Mobile Internet - sales q2 2001
Strategic area Wireless technologies
(WLAN, Bluetooth, etc)
Platform
Technology and market uncertainties
Sales(proforma 2000)
0.0
2.5
5.0
7.5
10.0
12.5
15.0
17.5
q2 accum
SE
K m
Prev year Current year
Highlights q2 2001 - EBIT
Towards profitability as planned Axis (excl. structural costs) up 5.5 Mkr
compared to q2-2000
Heavy R&D investments Mobile Internet 25 Mkr R&D total 50 Mkr
Structural changes
Highlights q2 2001 - EBIT
Items influencing EBIT Temporary production problems solved
in June, but unfavourable production allocation impacts also q2
Administrative costs related to restructuring activities
Lay-off program -20 Mkr
EBIT analysis q2-2001 (proforma q2-2000)
April-June 2001 April-June 2000
ThinServer products 0.7 -11.2
Mobile Internet -24.7 -18.6
Corporate functions -15.2 -14.8
Sub-total Axis excl structural and Netch
-39.1 -44.6
Structural cost Axis -20.3 -
SUB-TOTAL Axis excl Netch
-59.4 -44.6
Netch 9.8 -11.9
TOTAL -49.6 -56.6
EBIT by quarter (proforma 2000)
R&D overall 50 Mkr in q2-2001
New structure 20 Mkr restructuring
costs in q2-2001
Restructuring costs in q4 and q1 relates to Netch
Towards profitability as planned
EBIT by quarter (proforma 2000)
-57 -57 -55-62
-42-29
-10
-31
-20
-80
-70
-60
-50
-40
-30
-20
-10
0
q1-2000
q2-2000
q3-2000
q4-2000
q1-2001
q2-2001
SE
K m
EBIT Structural
ThinServer products - EBIT q1 2001
Profitability in focus Action program
reduces cost by 15%
EBIT level improved significantly
Action program impacts profitability from q3 and onwards
EBIT by quarter (proforma 2000)
-31
-11-7
1 0 1
-35
-30
-25
-20
-15
-10
-5
0
5
q1-2000
q2-2000
q3-2000
q4-2000
q1-2001
q2-2001
SE
K m
Mobile Internet products - EBIT q2 -01
Intensive R&D Total investment in
q2-2001 25 Mkr (19)
Investment level reduced during 2001
EBIT by quarter (proforma 2000)
-14-19
-21
-34
-24 -25
-40
-35
-30
-25
-20
-15
-10
-5
0
q1-2000
q2-2000
q3-2000
q4-2000
q1-2001
q2-2001
SE
K m
Change in liquid funds – q2 2001
Jan – June 2001
Opening balance 196.0
Cash-flow from operations -44.5
Investment in other fixed assets -17.6
Financing activities 30.6
Other -
Closing balance 164.5
Balance sheet - assets
June 2001 Dec 2000
Fixed assets 167.9 160.1
Inventories 51.5 60.1
Acc. Receivables 109.5 138.0
Other current rec. 28.6 73.2
Liquid funds 164.5 196.0
TOTAL ASSETS 522.1 627.4
Balance sheet - liabilities & equity
June 2001 Dec 2000
Equity 267.6 379.7
Minority - 12.1
Provisions 30.1 15.2
Long-term loans 61.0 51.4
Short-term liab. 163.4 169.0
TOTAL LIAB & EQUITY
522.1 627.4
Market trends 2001
Generally weak market conditions expected for the rest of year 2001
Market and technology delays in wireless area
Axis 2001
Focus on network connectivity
Global presence
Industry insider
R&D portfolio
Established channels to markets
Track record
Outlook 2001
Profitable second half of year 2001