AXIS Communications A world of intelligent networks Third quarter 2001
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Transcript of AXIS Communications A world of intelligent networks Third quarter 2001
AXIS CommunicationsA world of intelligent networks
Third quarter 2001 CEO Peter Ragnarsson
CFO Jörgen Lindquist
Third quarter 2001
Axis is a profitable company
Highlights - EBIT
-54-45 -37 -41
-32 -39
1
-20
-70
-60-50
-40
-30
-20-10
0
10
q1-00 q2-00 q3-00 q4-00 q1-01 q2-01 q3-01
EBIT Structural
Ongoing operations
Highlights
Strengthened positions
Gross margins substantially improved
Overhead costs lowered
Air transport problems from terror attacks
Sales
Axis grows in weak IT-market Global company
Market positions
Product portfolio
Broad customer base
Distribution channels
Sales
Nine months 2001 Sales 487 Mkr (440)
Growth 11%
Negative impact in q3 from terror attacks 10 Mkr
Sales(proforma 2000)
50100150200250300350400450500550
q3 accum
SE
K m
Prev year Current year
Ongoing operations
Segments
Networked Office Professional buyers
Organizations >50 employees
Office connectivity OEM Industrial customers
Camera IT
Security / surveillance
Mobile Internet
Technology
Networked Office - q3 2001
Strategic segment
Profitable base
Negative impact from macro and terror attacks
Strengthened positions
Sales(proforma 2000)
0255075
100125150175200225250
q3 accum
SE
K m
Prev year Current year
Office Connectivity OEM - q3 2001
Continuous demand for built-in Axis solutions
Several major projects accounted for in q4-2001
Strong orderbook 2002
Sales(proforma 2000)
0
25
50
75
100
125
150
175
q3 accum
SE
K m
Prev year Current year
Camera - q3 2001
Digitalization
Increased security awareness
Launch Axis 2191 with audio module
Negative impact from terror attacks
Sales(proforma 2000)
0
25
50
75
100
125
150
175
q3 accum
SE
K m
Prev year Current year
Mobile Internet - q3 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
q3 accum
SE
K m
Prev year Current year
Technology - q3 2001
Increasing demand Industrial use
Several strategic customer contracts
Sales(proforma 2000)
0,0
2,5
5,0
7,5
10,0
q3 accum
SE
K m
Prev year Current year
Investing for the future
Intensive R & D agenda Nine month period 119 Mkr
Corresponding to ~20% of sales
Effects from terror attacks
Air transport problems More than 10 Mkr in shipments delayed
until October
Highlights q3 2001 - EBIT
Profitability despite effects from terror attacks
Highlights q3 2001 - Margins
4.8
Highlights q3 2001 - Expenses
48
EBIT by quarter (proforma 2000)
R&D overall 31 Mkr in q3-2001
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
1
-10
-31
-20
-80
-70
-60
-50
-40
-30
-20
-10
0
10
q1-2000
q2-2000
q3-2000
q4-2000
q1-2001
q2-2001
q3-2001
SE
K m
EBIT Structural
ThinServer products - EBIT q3 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
16
-40
-30
-20
-10
0
10
20
q1-2000
q2-2000
q3-2000
q4-2000
q1-2001
q2-2001
q3-2001
SE
K m
Mobile Internet products - EBIT q3 -01
Intensive R&D Total investment in
q3-2001 10 Mkr (21)
Investment level reduced during 2001
EBIT by quarter (proforma 2000)
-14-19
-21
-34
-24 -25
-10
-40
-35
-30
-25
-20
-15
-10
-5
0
q1-2000
q2-2000
q3-2000
q4-2000
q1-2001
q2-2001
q3-2001
SE
K m
EBIT analysis q3-2001 (proforma q3-2000)
July-September 2001 July-September 2000
ThinServer products 16 -7
Mobile Internet -10 -21
Corporate functions -6 -8
SUB-TOTAL Axis excl Netch
1 -37
Netch - -18
TOTAL 1 -55
Sales – Q3
Sweden4%
EMEA39%
Americas33%
Asia24%
Gross margin
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
GM% 58.30% 52.70% 46.50% 48.20%52.90% 55.40%
Q2-00 Q3-00 Q4-00 Q1-01 Q2-01 Q3-01
Accounts receivables
0
20
40
60
80
Days of Sales Outstanding
DSO 67 55 76 57 64 56 53
Q1- Q2- Q3- Q4- Q1- Q2- Q3-
Inventory
0
10
20
30
40
50
60
70
80
90
Q1-00 Q2-00 Q3-00 Q4-00 Q1-01 Q2-01 Q3-01
Cash
020406080
100120140160180200
Q3-00 Q4-00 Q1-01 Q2-01 Q3-01
Market trends
Generally weak market conditions expected to remain at least until mid 2002
Axis 2001
Focus on network connectivity
Global presence
Industry insider
R&D portfolio
Established channels to markets
Track record
Outlook 2001
Profitable operations second half of year 2001
This is Axis
World-class solutions for easy-to-use,
secure and efficient communication over networks