axis communications - a world of intelligent networks full year 2002

AXIS Communications- a world of intelligent networks

Full year 2002

AXIS Communications- a world of intelligent networks

Full year 2002

CEO Peter RagnarssonCFO Jörgen Lindquist

Sharp increase in profitability Sharp increase in profitability

Financial performance 2002

Net sales for comparable units: SEK 670 M (676) Operating profit for comparable units: SEK 40 M (loss:83) Cash flow from operating activities: SEK 7 M (neg:26)

This is Axis

A global, established and profitable company

Sales in over 70 countries A broad product portfolio

meeting customer´s needs An innovative market leader Proven technology and intensive

R & D

Highlights 2002

Strong development within Video

Proactive market efforts Several new partners

focused on total solutions Positive sales trend in Asia

and EMEA

A year of growth in the Video market

Worldwide #1 position Axis’ largest product area A base of 200,000 units

installed Several new strategic

agreements

Trends driving the market

Transition from analog to digital solutions Growing interest in surveillance and

security Increasingly large investments Increasingly professional applications

IT market Security market

Converging markets

Focus on customer segments

Transportation Banking & Finance Government Retail Industrial Education

Investing for the future

Intensive R&D agenda 118 MSEK in year 2002 Corresponding to 18%

of sales Nine new patents Product innovations for future

growth

A strong position

Proven technology Global sales and

distribution Market leadership Profitable development Growth opportunities

Financial performanceFull year 2002

Financial performanceFull year 2002

Financial performance 2002

Sharp increase in profitability despite weak market Net sales for comparable units: SEK 670 M (676) Operating profit for comparable units: SEK 40 M (loss:83) Cash flow from operating activities: SEK 7 M (neg:26)

Financial highlights

Profitability Continuous growth for

Video Continuous cost

control Currency effects Positive cash flow

Sales 2002

Ongoing operations

0

100

200

300

400

500

600

700

Q4 Accum

2001

2002

MSEK

12 months 2002Sales 670 MSEK (676)

Sales Q4 2002

Sales by Product Group

45%Video

Print

41%

Scan & Store 7%

Access 1%Other 6%

Sales by region

22%

Asia Americas

EMEA

26% 27%

47%

Video – Sales 2001-2002

45% of Axis´ total sales Increased demand for

network cameras and video servers

New agreements

0

20

40

60

80

100

MSEK

Q1 Q2 Q3 Q4 Q1 Q2 Q3

2001 2002

Q4

Print – Sales 2001-2002

41% of Axis´ total sales Weak development due

to cautious IT-market

0

20

40

60

80

100

MSEK

Q1 Q2 Q3 Q4 Q2 Q3 Q4

Pro forma 2000

2001 2002

Q1

EBIT by Quarter 2000-2002

Continuous profitable development

Q4: operating margin 5.7%; profit margin 7.3%

Pro forma 2000

Q4

-80

-70

-60

-50

-40

-30

-20

-10

0

10

20EBIT Structural

MSEK

Q1 Q2 Q3 Q4 Q1 Q2 Q3

2000

Q1 Q2 Q3

2001 2002

Q4

Ongoing operations, MSEK

Sales per Quarter 2001-2002

0

20

40

60

80

100

120

140

160

180

200

Q1 Q2 Q3 Q4

2001 2002

Gross margin 2001-2002

0

10

20

30

40

50

60

Q1-01

Q2-01

Q3-01

Q4-01

Q1-02

Q2-02

Q3-02

Q4-02

%

MSEK

Accounts receivables 2001-2002

Days of sales outstanding

0

10

20

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50

60

70

Q1-01 Q2-01 Q3-01 Q4-01 Q1-02 Q2-02 Q3-02 Q4-02

0

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50

60

70

Q1-01 Q2-01 Q3-01 Q4-01 Q1-02 Q2-02 Q3-02 Q4-02

Inventory 2001-2002

MSEK

Liquid funds 2001-2002

MSEK

0

25

50

75

100

125

150

175

200

Q1-01

Q2-01

Q3-01

Q4-01

Q1-02

Q2-02

Q3-02

Q4-02

Axis’ ambition 2003

Profitability and growth Strengthened positions Priority on Video Clear customer focus New generation Video

products

Outlook 2003

Signs of increased activities in several markets

IT market and overall sales trend difficult to predict

Continued substantial growth for Video