axis growth keeps pace with the market january- december 2007 ray mauritsson, ceo fredrik...
TRANSCRIPT
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, StockholmLarge 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
Sales in more than 70 countries
Headquarters
Regional Headquarters
Regional Offices
Sales January - December, 2007
Total sales 1 671 MSEK (1 202)
Growth 39%
Currency effects - 88 MSEK
Video sales 1 530 MSEK (1 061)
Growth 44%
MSEK Growth
0
50
100
150
200
250
300
350
400
450
500
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%Video sales
Video growthTotal growth
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
Total costs -163 436 - 139 053 -134 540 - 125 449 -127 674
EBIT and Gross margin
Gross margin 55,2% (55,2%)
Operating margin 21,8% (20,4%)
Profit margin 21,8% (20,3%)
MSEK Margin
0
10
20
30
40
50
60
70
80
90
100
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%EBIT
Gross margin
EBIT margin
Q4 2007
Sales in the product areas
Q4 2007
Sales in the regions
Q4, 2007
Americas 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 PTZ cameras & domes Video encoders/decoders
Management SW
AXIS 243QAXIS 243SAAXIS 241QAAXIS 241QAXIS 241SAXIS 247SAXIS 240Q
AXIS 291 1U RackAXIS 3U Rack
AXIS Camera StationAXIS Camera MgmtADP > 400 PartnersAXIS 262+ NVR
AXIS 223MAXIS 221AXIS 225FDAXIS 216MFD/216MFD-VAXIS 211MAXIS 216FD/216FD-VAXIS 211WAXIS 211/211AAXIS 210/210AAXIS 209FD-RAXIS 209FD/209MFDAXIS 207MWAXIS 207/207W AXIS 206
AXIS 233DAXIS 232D+AXIS 231D+AXIS 214 PTZAXIS 213 PTZAXIS 215 PTZAXIS 212 PTZ
Accessories
Emerging market trends
Megapixel
Compression
Intelligence
Megapixel: better quality or better coverage
Analog camerasAnalog cameras
Megapixel network camera
One 2.0 megapixel camera covers a much larger scene thanfour 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*
* The world market for CCTV & Video Surveillance Equipment, 2007 edition.
All video surveillance equipmentAxis 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 leader32% market share for network cameras
Network VideoGrowth at an annual rate of 40 percent
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.
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
Marketshares for all cameras in 2006
* The world market for CCTV & Video Surveillance Equipment, 2007 edition.
Market shares for network cameras in 2006
2006 Rank Supplier 2006 Share
1 Axis 32.0%
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.
Future outlook
Focused product range Aggressive product development
Intelligent solutions
Focused business model Loyalty in channel partnerships
Focused company
Growth10%
CCTV
Growth40%
NetworkVideo