m a k e y o u r n e t w o r k s m a r t e r video growth despite currency effects year-end summary...
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. . . M A K E Y O U R N E T W O R K S M A R T E R
Video growth
despite currency effects
Year-end summary 2003
Ray Mauritsson, CEOJörgen Lindquist, CFO
Summary 2003
Operating profit Currency effects Weakened gross margin Continued growth for Video Unchanged strategy
. . . M A K E Y O U R N E T W O R K S M A R T E R
Financial performance
Full year and Q4 2003
Financial performance
Net sales: SEK 624 M (670) Currency effects impacted
negatively: SEK 71 M Operating profit: SEK 1 M (40)
Financial highlights 2003
Growth for Video Decreased sales within Print Currency effects Profitability Weakened gross margin Cost-savings program
Financial performance Q4
Net sales: SEK 163 M (168)¬ Currency effects impacted negatively:
SEK 14 M
Operating profit: SEK 4 M (10)
Q4 2003
Continued growth for Video, 22%
New partnerships Successful product launches Acquisition of software
developer
0
50
100
150
200
250
300
350
400SEK (M)
Video sales development 1999-2003
1999 20022001 2000 2003
0
20
40
60
80
100
120
140
160
180
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Sales by quarter
Q4: Continued growth
in Video Currency effects
and weak IT market affected sales
SEK (M)
2003
Video
Other
2002
EBIT by quarter
-10
-5
0
5
10
15
20
25
30
Q1 -02
Q2 -02
Q3 -02
Q4 -02
Q1 -03
Q2 -03
Q3 -03
Q4 -03
SEK (M)Q4: Positive development Gross margin:
48.9% (57.5) Operating margin:
2.5% (5.7) Profit margin:
3.6% (7.3)
Gross margin 2002-2003
0
10
20
30
40
50
60
Q1-02
Q2-02
Q3-02
Q4-02
Q1 -03
Q2 -03
Q3 -03
Q4 -03
%
Accounts receivables 2002-2003
Days of sales outstanding
0
10
20
30
40
50
60
70
Q1-01 Q2-01 Q3-01 Q4-01 Q1-02 Q2-02 Q3-02 Q4-02
Liquid funds 2002-2003
0
25
50
75
100
125
150
175
200
Q1-02
Q2-02
Q3-02
Q4-02
Q1 -03
Q2 -03
Q3 -03
Q4 -03
SEK (M)
Sales Q4
Sales by Region
21%
27%
52%
Asia
Americas
EMEA
Sales by Product Group
64%Print 29%
Scan & Store 4%
Access and other 3%
Video
EMEA market size & forecast
Axis market share in 2003¬ Network cameras: 59.8 %¬ Video servers: 35.4 %
Estimated annual growth until 2008¬ For network cameras: 28.4 %¬ For video servers: 30.3 %
Factory revenue IMS Reserach, ”The EMEA market for CCTV and Video Surveillance Equipment”
Axis 2004
Unchanged growth potential for Video
Uncertain development for IT investment
An aggressive product road map New opportunities Well positioned for profitable growth