Annual Report • Feb 14, 2012
Annual Report
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English 02/2012
The first quarter of the new fiscal year started again very successfully with a total turnover of € 20.8 million after the past short fiscal year of three months (€ 15.2 million). Despite a relatively low growth of 6% compared to the extremely strong growth in the prior-year quarter, we achieved a highly profitable result of approximately € 3.5 million for the period.
Due to the share split in the ratio 1:3, the share capital was increased to € 13.3 million. In spite of a dividend payout, the equity-to-assets ratio is now approximately 65%.
The relocation of the production is now completely finished. The production process is now more effective and the new space offers room for further growth.
Additional functions and modules were developed for the Door Station and the complete solution including the access control module and the Security Door Opener was launched on the market in December 2011. In the following months, more products and technologies that were developed in the last years will be launched.
I would like to thank the new shareholders for their great interest in our shares. I am sure that the business trend also in this fiscal year will continue to be very positive.
Thank you for your trust
Dr. Ralf Hinkel • CEO MOBOTIX AG
| Content | |
|---|---|
| Letter To The Shareholders | 1 |
| MOBOTIX At A Glance | 3 |
| Company Profile | 5 |
| The MOBOTIX Concept | 6 |
| MOBOTIX Cameras In Operation Throughout The Globe | 8 |
| The MOBOTIX Technology | 10 |
| The MOBOTIX Storage Technology | 12 |
| MOBOTIX Shares | 14 |
| Interim Consolidated Management Report | 18 |
| Business And Market | 18 |
| Results Of Operations, Net Assets And Financial Position | 22 |
| Research And Development | 26 |
| Employees | 26 |
| Changes In The Board Of Management | 26 |
| Director's Dealings | 27 |
| Significant Events After The First Three Months | 27 |
| Opportunities And Risks Of Future Development And Outlook | 28 |
| Interim Consolidated Financial Statements | 34 |
| Consolidated Income Statement, Consolidated Statement Of Comprehensive Income (Loss) | 34 |
| Consolidated Statement Of Financial Position | 35 |
| Consolidated Statement Of Cashflows | 36 |
| Consolidated Statement Of Changes In Equity | 37 |
| Notes To The Consolidated Financial Statements | 38 |
| Responsibility Statement | 44 |
| Independent Auditors' Review Report | 46 |
| Further Information | 48 |
| 3 months (October 1, 2011 to December 31, 2011) | 2011/12 | 2010/11 | Delta % |
|---|---|---|---|
| Financial performance | €'000s | €'000s | |
| Total Output | 20,070 | 19,909 | +0.8 |
| Revenue | 20,791 | 19,559 | +6.3 |
| Thereof outside of Germany (in %) | 74.4 | 74.5 | |
| EBITDA | 5,794 | 5,610 | +3.3 |
| EBITDA as % of total output | 28.9 | 28.2 | |
| EBIT | 4,908 | 4,877 | +0.6 |
| EBIT as % of total output | 24.5 | 24.5 | |
| Profit before tax | 4,778 | 4,744 | +0.7 |
| Return on revenue in % before tax | 23.0 | 24.3 | |
| Profit for the period | 3,515 | 3,331 | +5.5 |
| Cash flow from operating activities | 4,297 | 4,018 | +7.0 |
| Financial position | Dez. 31, 2011 | Sept. 30, 2011 | |
| Equity | 35,918 | 39,006 | -7.9 |
| Equity-to-assets ratio in % | 65.0 | 66.1 | |
| Total assets | 55,269 | 59,067 | -6.4 |
| Non-current assets | 24,801 | 24,876 | -0.3 |
| Current assets | 30,468 | 34,151 | -10.8 |
| Thereof cash and cash equivalents | 3,566 | 6,994 | -49.0 |
| Employees | |||
| Number of employees (Reporting date) | 328(1) | 272(1) | +20.6 |
| Revenue per employee | 73(2) | 80(3) | -8.9 |
| EBIT per employee | 17(2) | 20(3) | -13.8 |
| Key figures per share (in EUR) | |||
| Earnings per share (EPS)(4) | 0.27 | 0.25 | +5.5 |
| Dividend (after the share split) | 0.50 | 0.33 | +50.0 |
| Cash flow as per DVFA/SG(4) | 0.33 | 0.31 | +5.8 |
1) Including trainees and temporary staff, 4 (prior year: 2) members of the Management Board; by headcount.
2) Based on an average of 286 employees.
3) Based on an average of 245 employees.
4) Based on an average of 13.201 (previous year 13.204) million shares (after the share split).
Total Output € 20.1m (+0.8%)
Revenue € 20.8m (+6.3%)
| October 2010: | MOBOTIX reports an extremely successful start of the new 2010/2011 fiscal year with 42% revenue growth. |
|---|---|
| : | Successful trade show appearance at "Security" with the presentation of the T24 IP Video Door Station with access control and additional building automation components. |
| November 2010: | Q24 camera lines expanded to include black as a color version for new areas of application in casinos, cinemas and bars, for example. |
| December 2010: | At year-end 2010, MOBOTIX looks back on 21 partner conferences worldwide. |
| January 2011: | Dr. Magnus Ekerot and Dr. Oliver Gabel take their positions as new members of the Management Board. |
| February 2011: | In its half-year figures, MOBOTIX reports additional revenue growth of 47%. |
| April 2011: | MOBOTIX opens showrooms in the renowned Swiss-Re-Tower "The Gherkin" which dominates London's skyline. |
| May 2011: | In its nine month figures, MOBOTIX reports business growth totaling 37% and an export ratio of 75%. |
| : | The new showroom in the "Parque Empresarial La Finca de Pozuelo de Alarcón" is opened in Madrid. |
| June 2011: | Change in series production of the DualDome product family to the new P3 processor platform and 6.2 megapixels. The D14 thus replaces the successful previous model D12. |
| : | MOBOTIX surpasses EUR 73 million in annual revenue. |
| July 2011: | The production of MOBOTIX AG moves into the new production hall at the Langmeil site. |
| October 2011: | MOBOTIX earns first place in Germany's "Top 100 - Small and Medium-Sized Business Ranking 2011" and prevails against 1,600 companies particularly through dynamic growth and a consistent expansion strategy. |
| November 2011: | MOBOTIX conducts a share spilt in the ratio 1:3 to further increase the attractiveness of the MOBOTIX share in particular for private investors. |
| December 2011: | The IP Video Door Station T24 is available as complete version. In addition to the video door intercom, the RFID access module (Keypad), the Security Door Opener and the two-wire network module (Info Module Mx2wire) are now available. |
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Prime Standard since March 31, 2008
As a publicly traded company, MOBOTIX AG is a software Company with in-house hardware development for digital, high-resolution and network-based video security solutions. Whether in embassies, airports, gas-stations, highways or private homes, MOBOTIX video systems are now found world-wide with over one hundred thousand units in operation on every continent. In addition to the actual IP video cameras with megapixel resolution, MOBOTIX also produces interface components and video management software for operating complete security solutions. The system concept – a distinctive software solution and decentralized camera systems – significantly distinguishes MOBOTIX from its competitors with MOBOTIX first having made high-resolution, hemispheric systems cost-efficient. With over 300 employees, and an export share of over 70%, MOBOTIX has achieved a 7% global market share.
MOBOTIX has designed a decentralized system architecture that allows images to be analyzed in the camera, instead of a central PC. Thus, the cameras detect movements in the image independently, store them in a database and report the results via eMail or VoIP phone calls. This decentralized structure relieves the network, allows the integrated video management to make higher image rates possible and reduces the number of storage systems for recording high-resolution video sequences many times over.
The hemispheric camera technology developed at MOBOTIX permits the recording of an entire room from the ceiling or a wall – independent of the selected live image detail – using a single camera, so that other room areas can be viewed later during a searchanalysis phase. Details of the hemispheric live image, resembling a fish-eye, are already digitally transformed in the camera in such a way that the users believe they are using a panning camera.
The powerful innovative strength of MOBOTIX has enabled it to be the first to introduce nearly all significant innovations in the IP camera sector market in the last ten years. For this reason, MOBOTIX is seen as the industry's technology leader. With growth rates up to 50%, MOBOTIX has continued to rapidly gain global market share since 1999.
MOBOTIX uses hemispheric technology in the T24 IP Video Door Station to achieve further growth in a new, closely related market for access control and door intercom devices and to establish itself in the rapidly expanding home automation sector. When the doorbell rings, a connection is established with a standard VoIP phone or a computer via the network so that the door station can be operated and the door opened remotely from anywhere in the world. The integration of iPhone and iPad play an important role here.
The German company MOBOTIX AG is known as the leading pioneer in network camera technology and its decentralized concept has made high-resolution video systems cost efficient.
HiRes Video Innovations And Technology Leader The German company MOBOTIX AG is known as the leading pioneer in network camera technology since its founding in 1999, and its decentralized concept has made highresolution video systems cost efficient.
MOBOTIX has been producing megapixel cameras exclusively for many years now and is regarded as the global market leader for high-resolution video systems.
The higher the resolution, the more accurate the detail in the image. With analog technology, a recorded image generally has no more than 0.1 megapixels (CIF). One single MOBOTIX camera with 3.1 megapixels records around 30
times more detail. As a result, larger image areas with up to 360° allround views are possible, thus reducing the number of cameras and therefore the costs. For example, four lanes of a gas station can be recorded with one MOBOTIX camera instead of four conventional cameras.
Usually, cameras only supply the images while the processing and recording is done later on a central PC using expensive video management software. This traditional centralized structure has many limitations, since it requires high network bandwidth and the PC processing power is not enough for several cameras. An HDTV MPEG4 film already puts considerable strain on a PC, so how can it be expected to process dozens of high-resolution live cameras? Traditional centralized systems are therefore less suitable and unprofitable when compared with high-resolution systems due to the high number of PCs needed.
MOBOTIX has redefined video. Whether on the Internet, in traffic management, building surveillance or banking environment, the MOBOTIX camera is connected to the network like a printer and live and recorded images can then be retrieved from any PC without installing any software.
Unlike other systems, with the decentralized MOBOTIX concept, a high-speed computer and if necessary, digital long-term memory (MicroSD Card) is built into every camera, providing several days of recording time. The PC and the video control center now serve only for viewing and controlling the cameras (PTZ), not for analysis or recording. This makes it unnecessary to purchase expensive video management software, as the most important and computer-intensive functions are already integrated in the MOBOTIX cameras.
MOBOTIX cameras have neither mechanical motors for lenses nor for movement. Without
MicroSD integrated
MOBOTIX video solutions therefore require significantly:
• fewer cameras due to the more accurate detail of panoramic images with megapixel technology,
any moving parts, they are therefore so robust that maintenance is reduced to a minimum. The unique temperature range from -30 to +60 °C is achieved without heating or a fan at only 3 watts. Since no PC hard disk is required for recording, there are no parts that wear out in the entire video system.
With MOBOTIX, the software for controlling the camera and searching for events can be used at no charge. You can easily control the video system from any standard PC. This even works worldwide via a DSL Internet connection.
To guarantee security in the stadiums during the FIFA World Cup in Qatar in 2022, MOBOTIX has already equipped four of the completed or renovated World Cup arenas with IP video systems and managed to successfully compete against international rivals in the bidding process. The installations were completed already in late 2010 so the system could be tested in January 2011 during the Asian Cup of the Asian Football Confederation (AFC).
Altogether about 600 cameras were installed from the model series M12, DualDome Camera D12, both with day and night sensors, as well as the hemispheric camera
Q24 with a continuous 360 degree allround view. About 200 Mx2wire Media Converters were installed so that the existing cable structure could be used to save costs. The included MxControlCenter software, which MOBOTIX offers free of charge, was used in all four stadiums for professional video management. Thanks to the positive experiences, additional projects are already in the planning stage.
The Barwa Financial District (BFD) is an office and retail complex currently under construction in Doha, Qatar. Nine skyscrapers with offices, a shopping mall, a 5-star hotel and a mosque will be located on the property measuring 670,000 square meters. The buildings will have an average height of between 21 and 36 floors. The 52-floor skyscraper tower will be the highlight of the BFD area and in the future will dominate Doha City's skyline. The investors of the project selected IP video systems from MOBOTIX to guarantee the security of the residents, employees and guests of the complex. For this purpose, 760 MOBOTIX cameras (700 D24 and 60 Q24 cameras) are currently being installed in the Barwa Financial District. In the bidding process, MOBOTIX successfully competed against numerous well-known rivals such as Axis and Honeywell.
Airbus S.A.S., Commerzbank AG, Daimler AG, Deutsche Bahn Station & Service AG, Fraport AG, EON Wasserkraft, Le Méridien Parkhotel Frankfurt, Lübecker Hafen-Gesellschaft mbH, MAN Logistics, Max Planck Institute for Chemical Ecology, Schenker GmbH, Skoda Auto Deutschland GmbH, etc.
Arriva offers train and bus transportation in various provinces in the Netherlands. Based
on innovative transport solutions that optimize comfort and safety for the travelers, the Company is continously expanding. For this reason, Arriva has equipped all its buses and trains with surveillance cameras from the beginning on to ensure the safety of passengers and drivers. To increase the safety even more, the Company has replaced its analog cameras in the buses of the Achterhoek Riverland line with a new generation of IP cameras. The cameras must guarantee highresolution video and high-quality audio recordings. After a testing phase of several months, Arriva selected the MOBOTIX Q24 360° camera to secure the interior areas of the buses, while M12 cameras provide security in the front area of the buses. Altogether 210 mobile MOBOTIX cameras are currently being used in the Arriva buses.
A MOBOTIX camera now makes it possible to view the peak of Mount Everest in real time in complete comfort from your home computer. The camera has already established a world record being the highest webcam in the world. The scientific team Ev-K2-CNR from Bergamo, Italy has installed a MOBOTIX M12 camera on nearby Kala Patthar (5,675 meters) which delivers impressive images of Mount Everest. The research project "SHARE Everest 2011" is part of the international climate and environmental monitoring system called "SHARE - Stations at High Altitude for Research on the Environment." The researchers hope to gain knowledge concerning climate change and global warming. Powered by a solar panel, the MOBOTIX
camera delivers highquality images despite frigid temperatures as low as minus 30° Celsius. The camera is robust and versatile, making it ideally suited for harsh environmental conditions.
Abu Dhabi Airport (United Arab Emirates), Bahrain Defense Hospital (Bahrain), EURO 2012 Soccer Stadium (Ukraine), Hudson River Park (New York), Italian Financial Services Authority (Milano), Republic Polytechnic (Singapore), Orange Mobile (Romania), Vatican Apostolic Library (Vatican City), etc.
The primary components of the hemispheric camera include a fisheye lens, a high-resolution image sensor and image correction software that is integrated into the camera. Using an ultra-wide angle fisheye lens, the camera captures a 180° hemispheric image of the room and projects it onto a high-resolution image sensor.
The virtual PTZ feature allows you to enlarge or move image sections within the hemisphere, just like a PTZ camera yet, with MOBOTIX, this is achieved with no moving parts.
One or more image sections can be corrected for perspective in the hemispheric view, allowing you to monitor and record several
different areas of a room at the same time, something that a mechanical PTZ camera is not capable of doing.
Hemispheric cameras are extremely discreet because they manage their task with only one lens, which is generally focused on the entire room and not a specific object. MOBOTIX hemispheric cameras are without
mechanical moving parts and require low maintenance. In addition, they are silent when panning and focusing on a specific image area.
When ceiling mounted, the image area of the hemispheric camera covers the entire room. The image in the hemisphere is convex, particularly near the image borders. These image sections are corrected for the viewer by the integrated distortion correction
software, allowing a view of the scene from the usual perspective.
MOBOTIX ranks as the global market leader in high-resolution video systems. Each camera includes a high-speed processor and digital memory (SD Card) for long-term recording (decentralized MOBOTIX concept).
The perspective of the hemispheric image can also be transformed into an ultra-wide angle panoramic view spanning 180° if
the camera is mounted on a wall, providing a wall-to-wall view of the room without
any blind spots. It offers a substantially better view of the scene, compared to other cameras, it also results in the need for fewer cameras overall. When ceiling mounted, one camera can also capture an entire room by two opposite panoramic views.
Using solutions featuring several individual cameras, moving objects will normally jump from one viewing area of a camera to another. This often produces a confusing situation for the viewer because objects may disappear from sight for a moment or even appear twice if the viewing areas overlap. This is not the case with hemispheric panoramic cameras. Objects remain in view at all times and the viewer can always keep good track of objects in the scene.
In contrast to a normal PTZ camera, which is always focused on one section of a room and only records that section, the virtual PTZ also allows you to pan to other areas at a later stage in the recording as the entire room can be recorded as a hemispheric image.
The Q24 enables a hemispheric 360° panorama view using only a single lens. One single camera can monitor all four corners of a room. The fisheye effect, which is typical for this lens, can be digitally compensated in the live image.
These days, video data is normally preprocessed and stored centrally on a PC or digital video recorder (DVR) using video management software. Video and audio streams from all installed cameras are directed both of the network and of the recording device (PC, server). MOBOTIX cameras can of course also minimize the recording independent of the live video, and the sound channel is recorded even with video recordings of two frames per second.
Standard system requires an extra PC including software for analysis and storage
to this central device. In this case, using highresolution cameras often results in data jam. Above all, storage is inefficient, because if the PC has limited computing power, the highresolution video with a high frame rate must be sent directly to a storage device before it can be processed.
If, like with MOBOTIX cameras, the camera adjusts the image format and the frame rate to the correct values for the specific application (at a gas station, two frames per second are enough for the recording), it relieves the load
The decentralized MOBOTIX concept enables the user to save around 10 times the number of cameras on a single storage device because the camera manages the recording itself (on a PC, server, NAS), thus reducing load on the device. For this reason, practically speaking, there is no memory limit for the entire system because theoretically, each camera is able to manage its own terabyte-sized storage device via the network. Another benefit of this concept is the use of affordable, reliable NAS drives that do not require any special software.
Every single MOBOTIX camera can be configured to record internally or externally via the network. If necessary, a USB stick can be connected by cable directly to the camera, but on the other side of the wall, where it cannot be stolen.
MOBOTIX cameras are also able to store up to 64 GB of video in their integrated memory. Thanks to this high storage capacity and the option of recording only the sequences in which an event occurs, external storage devices such as hard drives are rarely required. This saves on storage devices and network infrastructure and reduces the maintenance cost of mechanical components such as hard drives or fans. The internal SD cards (flash memory) are digital and since they do not have mechanical components, they are maintenance-free.
MOBOTIX cameras are ideal for difficult network conditions or WLAN connections because the internal flash storage bridges network failures or bandwidth fluctuations and synchronizes data when a connection is re-established with the external storage device.
The option of backing up the internal memory at preset times (for example, at night) reduces the load on the network and, in many cases, enables shared use of the existing network infrastructure.
MOBOTIX systems are decentralized and secure, even without a PC for storage
Only relevant image detail (fading out sky, ceiling etc.); only relevant events (e.g. movement in the image); long-term recording only with temporarily increased frame rate during event, but no storage limitations in the MOBOTIX system thanks to modern NAS storage technology.
MOBOTIX AG shares have been listed on the German Stock Exchange since October 10, 2007 and on the Prime Standard segment of "Deutsche Börse AG" since March 31, 2008.
The predominant themes of the last few months were the persistent debt problems of some European states, in particular Greece, the rating downgrades of several European states due to deteriorating borrowing capacity caused by their debt problems, as well as liquidity problems in the banking sector. Furthermore, policymakers in the USA and Europe took delayed action toward solving structural deficits. Hence, it was predictable that all indices in Europe closed the year with losses - including double-digit losses.
MOBOTIX' IPO in October 2007 was one of the few in recent years to have generated positive returns for its initial subscribers, and MOBOTIX shares have proven exceptionally lucrative as an investment. For example, initial subscribers realized capital gains of 351.7% (effective date of IPO: October 10, 2007) while all of the relevant indices posted substantial losses in value in the same period. The German benchmark index DAX, for example, lost 26.1% of its value and the technology-oriented TecDAX lost 31.9% during the same period. The German Entrepreneurial Index (GEX), on which the MOBOTIX shares have been listed since June 23, 2008, also showed significantly poorer performance since MOBOTIX AG's IPO, losing 51.8% in value. The GEX tracks owner-managed German companies within the Prime Standard segment of the Frankfurt Stock Exchange – companies listed on Prime Standard segment may be listed for a maximum of ten years and must be managed by their owners. To qualify as owner-managed, members of the Management and Supervisory Boards, or their families must hold between 25% and 75% of the voting rights. The MOBOTIX share outperformed the German DAX index as well as other German indices in the past short fiscal year 2011. In the first quarter, the MOBOTIX share reached its high of EUR 23.0 on December 5, 2011, and its low of EUR 18.97 on October 5, 2011. The closing price on the reporting date of December 31, 2011 was EUR 22.0. Accordingly, the MOBOTIX share won 11.1% of its value (including dividend) in the period under review.
| MOBOTIX share | 351.7% | 11.1% |
|---|---|---|
| DAX | -26.1% | 7.2% |
| TecDAX | -31.9% | 3.4% |
| GEX | -51.8% | -2.2% |
*Reporting Date October 10, 2007
MOBOTIX AG pursues a growth-oriented dividend policy that corresponds to corporate growth and the respective business situation. In the Annual General Meeting held for the last full fiscal year 2010/11 on October 21, 2011, a dividend of EUR 1.50 per share (prior year: EUR 1.01 per share) was approved and subsequently paid to the shareholders.
The capital increase including a subsequent share split according to a ratio of 1:3 adopted in the Annual General Meeting on October 21, 2011 was fully implemented in November. The Management Board assumes that this measure will lead to an additional increase in trading volume and accordingly an increase in the share's attractiveness.
At the end of the short fiscal year 2011, MOBOTIX AG continues to have a very stable shareholder base that supports the long-term and sustained development of the Company. The shareholder structure of MOBOTIX AG is as follows:
Dr. Ralf Hinkel Holding GmbH holds 50.14% of the shares, Andreas Putsch holds 9.91% of the shares and Klaus Borchers 5.00%. A share buyback program was started in July 2010. As of September 30, 2011 MOBOTIX AG had acquired 70,047 treasury shares (after the share split) as part of the share buyback program. The free float as defined by the Deutsche Börse is 34.42%. .
Since MOBOTIX AG's IPO, the Management Board has regularly engaged in dialogue with investors, analysts and financial journalists. Special emphasis is placed on the continuous flow of information. The Company fulfills the follow-up obligations of the Prime Standard segment of the Deutsche Börse AG.
In the past quarters, MOBOTIX AG continued to increase its Investor Relations activities and presented itself to interested analysts and investors at various events such as German Equity Forum in Frankfurt, the European Small Mid Cap Conference of the Bank of America Merrill Lynch in June 2011 in London as well as further roadshows in Paris, Stockholm, Frankfurt and Zurich.
On December 20, 2011, MOBOTIX Annual General Meeting for the past short fiscal year was held at the Company's headquarters. With approximately 47 shareholders, 71.30% of the authorized capital was represented. The constructive and interesting questions, and the extraordinarily high agreement of over 99% for all proposals on the agenda clearly reflected the shareholders' confidence in the Company.
In the fiscal year 2010/11, the Bank of America Merrill Lynch has taken up coverage of the MOBOTIX share. Besides the Bank of America Merrill Lynch, analysts of the DZ Bank and the Equinet AG as well as Hauck & Aufhäuser and GBC AG have also taken up continuous coverage of the share.
| High (December 5, 2011) | 23.00 € | |||
|---|---|---|---|---|
| Low (October 5, 2011) | 18.97 € | |||
| Closing price* | 22.00 € | |||
| Market capitalization* | 292.0 Mio. € | |||
| *as of reporting date December 31, 2011 |
DEUTSCHE BÖRSE PRIME STANDARD PRIME STANDARD
| WKN | 521830 |
|---|---|
| ISIN | DE0005218309 |
| Ticker symbol | MBQ |
| Bloomberg | MBQ:GR |
| Reuters Instrument Code | MBQGn.DE |
| Stock exchange segment | Regulated Market (Prime Standard) |
| Prime segment | Technology |
| Industry Group | Electronic Components & Hardware |
| Stock exchange | Frankfurt |
| Share capital | 13,271,442 EUR |
| No. of shares outstanding | 13,271,442 |
| Index categories | GEX, CDAX, Technology All Share, Prime All Share |
| Analyst coverage | DZ Bank, Equinet AG, Hauck & Aufhäuser, GBC AG, Bank of America Merrill Lynch |
MOBOTIX AG sees itself as a software company with its own hardware development in the area of digital, high-resolution and network-based video security solutions. The company focuses on the development of user-friendly, complete system solutions from a single provider.
The Company's product portfolio includes the product lines M12 (DualNight Camera), M24 (Allround Camera), D12 (DualDome Camera), D24 (MonoDome Camera), V12 (Vandalism Camera) and Q24 (Hemispheric 360° Camera). Moreover, the digital door station T24 with a variety of accessories was launched on the
market in the last several months. In addition to its network cameras and door stations, MOBOTIX also offers the MxControlCenter, a complete video management solution as a control center software that is able to integrate cameras from other manufacturers, as well as MxEasy – a video software solution for the
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consumer and semiprofessional segment. The MOBOTIX video management solutions are offered free of charge. In addition, various accessories are available in the Company's product range.
MOBOTIX operates in the video security systems market. This market is generally referred to as the CCTV market (Closed Circuit Television market). Today's market for video security systems includes both analog video security systems and network camera systems, as well as video management software and accessories. Combinations of analog and network camera systems are known as hybrid systems. The relevant market segment for MOBOTIX in this respect is network cameras.
In a current study made by the market research firm IMS Research in July 2011, the authors presume that global sales in the market for network cameras will grow by an annual average of approximately 26.0% from 2010 to 2015. The growth potential is estimated to be comparatively high in all global market segments (Americas, Asia, EMEA) and is not limited to a few regional markets.
The competitive market is comparatively homogeneous worldwide – approximately 80% of the large major competitors are very similar in all global market segments.
We also expect the market to perform well in the short term with steady growth at a high level. It is important to note here that for the medium term, the dependence on the overall economic development will be slightly lower in the market segments.
Hemispheric IP Video Door Station in silver. Additional colors (white, dark gray, amber and black) are available.
In the first three months of fiscal year 2011/12, MOBOTIX Group revenue grew by 6.3% to EUR 20.8 million (prior year: EUR 19.6 million). The comparatively low growth rate is due in particular to the fact that the prior-year quarter was very strong and significantly exceeded the revenue of the following quarter. The development of sales revenue considering the overall economic conditions in particular was within the expectations of the Management Board. Profit before tax rose by 0.7% to EUR 4.8 million (prior year: EUR 4.7 million). Total operating performance (sales revenue, increase/ decrease in finished goods and work in progress and other own work capitalized) was EUR 20.1 million in the first three months of 2011/12 (prior year: EUR 19.9 million).
Earnings before interest, tax, depreciation and amortization (EBITDA) (28.9% of total operating performance) amounted to EUR 5.8 million (prior year: EUR 5.6 million). Earnings before interest and taxes (EBIT) (24.5% of total operating performance) amounted to EUR 4.9 million (prior year: EUR 4.9 million). The first quarter of 2011/12 ended with net income of EUR 3.5 million (prior year: EUR 3.3 million) (return on sales: 16.9%).
A large part of revenue growth was achieved through increased sales of dome cameras. Sales revenues for dome cameras grew by 12.6% from EUR 9.7 million to EUR 10.9 million; sales revenues for fixed cameras remained at the prior-year level of EUR 8.9 million. The export ratio in the first three months was 74.4%, down from 74.5% in the prior-year period. In Germany, revenues increased by 7.0% from EUR 5.0 million to EUR 5.3 million, while revenues in the rest of Europe (without Germany) declined by 9.7% to
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EUR 7.1 million. Revenues in the rest of the world rose from EUR 6.7 million to EUR 8.4 million, representing an increase of 24.7% . The prices of products were neither increased nor lowered.
The material usage ratio (ratio of cost of materials to total operating performance) declined to 21.8% compared to the previous year. The decrease is explained primarily by the negative changes in inventories.
The personnel usage ratio (staff costs to total output) increased from 26.3% to 28.0% with a further build-up of the workforce. New hires were made in sales and development in particular. Compared to the prior-year quarter, the staff costs increased by EUR 0.4 million.
At EUR 4.6 million, other operating expenses (prior year: EUR 4.6 million) are at the level of the prior year and include revenue-dependent distribution expenses such as shipping and packaging costs, advertising and marketing expenses, travel and entertainment expenses as well as expenses for temporary staff.
The subsidiary MOBOTIX CORP reported net income for the period of USD 0.4 million (prior year: net loss of USD 0.1 million) with a revenue increase of 32.8%. This figure includes currency translation gains of USD 0.2 million (prior year: USD 0.1 million).
Development costs in the amount of EUR 0.2 million were capitalized in the first three months of fiscal year 2011/12. Property, plant and equipment decreased by EUR 0.1 million, (-0.3%), to EUR 22.4 million. Capital expenditure on property, plant and equipment of EUR 576 thousand was offset by depreciation in the amount of EUR 648 thousand. The investments related to subsequent manufacturing costs for the construction of the new production hall at the Langmeil site and investments in technical systems as well as operating and office equipment. Investments in technical systems consist largely of investments in injection molding tools and IT equipment.
Measures targeted at reducing the capital commitment caused inventories to decline by EUR 1.1 million (-7.2%) to EUR 13.9 million.
Due to the higher business volume in December 2011, trade receivables increased to EUR 7.3 million as of December 31, 2011, an increase of EUR 1.2 million compared to the balance sheet date as of September 30, 2011.
Other assets amounted to EUR 5.3 million (September 30, 2011: EUR 5.5 million) and comprised gold reserves at a carrying
Revenue Rest Of World € 8.4m (+24.7%)
amount of EUR 3.6 million, tax refunds at EUR 0.4 million and advance payments of EUR 0.4 million.
Cash and cash equivalents declined in particular due to the divdidend payment amounting to EUR 6.6 million by EUR 3.4 million to EUR 3.6 million (September 30, 2011, EUR 7.0 million).
On the equity and liabilities side, equity decreased by EUR 3.1 million to EUR 35.9 million due to the payment of the dividend. The equity-to-assets ratio was reduced only slightly from 66.1% to 65.0% due to the decrease of EUR 3.8 million (-6.4%) in total assets. Treasury shares were unchanged from September 30, 2011. Due to tax expenses for the first three months of fiscal year 2011/12, tax provisions rose by EUR 0.5 million to EUR 2.9 million. The decrease in liabilities to banks results in particular from the planned repayment of loans totaling EUR 0.3 million. At EUR 3.5 million, trade payables decreased slightly compared to September 30, 2011.
Other liabilities decreased by EUR 0.8 million to EUR 1.6 million compared to September 30, 2011, due to decreased personnel liabilities.
Based upon the developments described above, the total assets of the MOBOTIX Group decreased by EUR 3.8 million (-6.4%) to EUR 55.3 million as of December 31, 2011 compared to September 30, 2011.
Cash flows from operating activities of the MOBOTIX Group amounted to EUR 4.3 million in the first quarter 2011/12 (prior year: EUR 4.0 million). At EUR 0.8 million (prior year: EUR 0.7 million), net cash used by investing activities is primarily due to investments in property, plant and equipment. Including the subsidies granted, cash paid for capital expenditure on property, plant and equipment amounted to EUR 0.6 million. The negative cash flow from financing activities of EUR 7.0 million resulted in particular from the payment of a dividend of EUR 6.6 million. In the first quarter of the prior year, the negative cash flow from financing activities amounted to EUR 7.1 million and was due to the distribution of a dividend of EUR 4.4 million for fiscal year 2009/10 and the repayment of a loan in the amount of EUR 2.0 million.
The various cash flows generated during the reporting period resulted in cash and cash equivalents of EUR 3.6 million as of December 31, 2011. The Company's solvency was guaranteed at all times in the first quarter of fiscal year 2011/12. Due to the Company's creditworthiness, a number of financing options are available.
Non-current liabilities decreased by EUR 0.2 million to EUR 9.9 million compared to September 30, 2011. Non-current liabilities as a share of total assets of the MOBOTIX Group increased from 17.2% to 18.0%. As of the reporting date, current liabilities represented 17.1% of total assets, compared to 16.7% as of September 30, 2011.
The development of the Group's net assets, financial position and results of operations in the first three months of fiscal year 2011/12 fully reflects the expectations of the Management Board for the business development in this period.
Development activities were also further expanded during the first three months of fiscal year 2011/12. As of December 31, 2011, the MOBOTIX Group had 79 employees (by headcount) in its Development department. As in previous years, the primary development focus was on the creation of new hardware and software products as well as further optimization of the product functionality.
Most development activity is carried out in-house. Development activities are outsourced on a very small scale only in the area of tool design and PC board layout.
One focus in the last three months has been the development of accessories for the IP-based door station T24 as well as the basic development for another camera line.
In the last three months, we also laid the foundation for additional product development innovations, which are expected to be launched on the market in fiscal year 2011/12.
Thirteen employees were hired in the first three months of fiscal year 2011/12. As of December 31, 2011, the MOBOTIX Group had 300 employees, compared to 292 employees (excluding trainees and temporary staff, including members of the Management Board; by headcount) at the beginning of the fiscal year. Fiscal year 2011/12 will see additional staff increases, particularly in marketing, sales and development.
D14D DualDome original image: Tele lens (left) and wide angle lens (right) – at the same time in one image
328 (Head count incl. management board, trainees and temps)
During the period from October 1, 2011 to December 31, 2011, the following reportable purchases or sales of shares were effected by members of the Management Board or Supervisory Board.
No events of any significance occurred after the end of the first three months of fiscal year 2011/12.
| Name | Function | Date of transaction |
Type of transaction |
Stock exchange |
Number of shares |
€ Price | € Total volume |
|---|---|---|---|---|---|---|---|
| Prof. Dr. Gerten | Supervisory Board |
* | Buy | Xetra | 800 | 19.77 | 47,440 |
* 4 partial transactions on November 14, 15 and 16, 2011
The loan granted to Dr. Ralf Hinkel in the amount of EUR 230 thousand, which matured on December 31, 2011, is to be repaid in the current quarter. The loan bears interest at a rate of 3.5% per annum.
No other significant changes in transactions with related parties occurred during the period under review.
Thereof In Development 79
The MOBOTIX Group has implemented an adequate risk management system to ensure that risks are detected and mitigated at an early stage. The Group's risk management system is intended to identify, monitor, and control any risks that occur. In addition to risks that could jeopardize the Company's continued existence as a going concern, the system also records activities, events and developments that could significantly affect the future performance of the Company's business. As part of risk management, operational opportunities and risks are identified and managed over a period of one to three years. For strategic opportunities and risks, a correspondingly longer forecasting horizon is used.
Precautions are taken against typical business risks that could have a material influence on the Group's results of operations, net assets or financial position.
Based upon the information currently available, the MOBOTIX Group is not at present faced with any significant specific risks that, in and of themselves, would be likely to jeopardize the continued existence of the MOBOTIX Group.
The Company continues to refine its internal structures in line with its growth and to adapt them to the scale of its business. The Company plans additional measures to strengthen and improve quality management, the internal control system, and risk management.
Please refer to the Annual Report for the short fiscal year 2011 for details of any material risks.
The Management Board deems the procurement market risks to be basically within the customary range for the industry. The tension on the procurement market observable for the past several months was additionally exacerbated by the possibility of procurement bottlenecks related to the earthquake and the resulting nuclear disaster in Japan. The Company is basically controlling the threat of long supply times by increasing inventory management on components and finished goods. At present, no specific impact on product availability is anticipated, although this possibility cannot be ruled out.
A short-term failure of critical suppliers, e. g. for processors, which could lead to significant disruptions in production, is considered unlikely.
It is currently not yet possible to estimate how negatively the current debt crisis in Europe, the associated difficulties in solving the problem on the political level and the resulting upheavals in the capital markets will impact earnings growth. If a global or widespread recession should result from these developments, this would of course have noticeable impacts on the relevant market environment of MOBOTIX.
During the period under review, our risk situation and risk management system did not deviate notably from that described in the Annual Report for the short fiscal year 2011. The Company sees no risks at the present time or in the future that would endanger the Company's continued existence or would have a material influence on its development. Technological innovation and further expansion of the distribution network are extremely important for the Group's sustained success.
The positive market trend in combination with continued forecasts of high growth rates has created a foundation for the Company's successful development. In addition to a rising awareness of security issues, market growth will be driven by the switch from analog to digital technology. If this switch should happen sooner than expected, additional opportunities could arise for MOBOTIX. Factors that could lead to an acceleration include political initiatives such as the French video law that would improve the quality of security systems in the public sector.
The Management Board assumes that technological market drivers such as increasing image resolution in video systems and more complex security installations will favor the advantages of the decentralized technology approach. This has become particularly evident through the introduction of hemispheric technology (Q24). This would strengthen the MOBOTIX Group's competitive position and put pressure on the competition.
Experience shows that an accelerated macroeconomic recovery experience as well as a sustained macroeconomic downturn, of course, can also lead to supply bottlenecks on the procurement market and cause production bottlenecks. Such risks are counteracted in particular by increased warehousing of critical components and finished products.
The Management Board is confident that through the increased publicity, new opportunities will arise to acquire new employees, sales partners and customers.
MOBOTIX is currently represented by partners throughout the world. A key factor for unleashing future growth potential involves pursuing a targeted expansion of the partner network. The successful expansion of the sales network holds the key to significant growth opportunities. The outstanding global market position – particularly in the niche markets of high-resolution network cameras – provides the conditions for ongoing and thriving growth.
In terms of regions, the Management Board sees key growth areas for the coming months in North America, South America and Asia.
The introduction of the hemispheric camera technology to the market has so far been very successful. The fact that the Company's key competitors are still unable to offer any comparable products is an indication of MOBOTIX AG's innovative strength
and will enable the Company to occupy a unique position in this product field over the medium term. Moreover, MOBOTIX plans to use additional product innovations in the area of video surveillance systems in the coming months to reinforce its competitive position.
Considerable future potential is seen for the new Access Control & Communication product field, particularly the T24 digital door station. The systems currently available on the market are based on a 4/5-wire or 2-wire cabling. Digital systems based on IP networks represent a forward-looking innovation and a market novelty. The Company is accordingly aiming to be the technology leader in the door station field in the short term.
The entry into the new product field of Access Control & Communication and the associated lack of experience as to the speed of global market penetration and the current upheavals in the capital markets make it difficult to predict the outlook for the current fiscal year 2011/12 as well as the following year. On the whole, the Management Board expects revenues to grow by 30% to 35% in the current fiscal year. The products from the new field are expected to contribute EUR 8 million to EUR 10 million to total revenue. With regard to profitability an EBIT
margin of 23% is considered realistic, assuming revenue grows as anticipated. Due to the high level of interest in the new product field, the Management Board expects continuing high growth in sales and EBIT for the coming year as well.
The above forward-looking statements are of a purely predictive nature. The actual results may thus deviate substantially from these expectations.
Winnweiler-Langmeil, January 19, 2012
The Management Board
Dr. Ralf Hinkel • CEO MOBOTIX AG
Lutz Coelen • CFO MOBOTIX AG
Dr. Magnus Ekerot • CSO MOBOTIX AG
Dr. Oliver Gabel • CTO MOBOTIX AG
| 3 Months | ||||
|---|---|---|---|---|
| EUR '000s | see notes | Oct. 1, 2011- Dec. 31, 2011 |
Oct. 1, 2010- Dec. 31, 2010 |
|
| Revenue | (1) | 20,791 | 19,559 | |
| Decrease in finished goods and work in progress | -898 | -11 | ||
| Other own work capitalized | (2) | 177 | 361 | |
| Total output | 20,070 | 19,909 | ||
| Cost of materials | (3) | -4,376 | -4,554 | |
| Gross profit | 15,694 | 15,355 | ||
| Staff costs | (4) | -5,613 | -5,234 | |
| Depreciation and amortization | -887 | -733 | ||
| Other operating income | 263 | 87 | ||
| Other operating expenses | (5) | -4,550 | -4,599 | |
| Operating profit | 4,908 | 4,877 | ||
| Other interest and similar income | 4 | 16 | ||
| Interest expense and similar charges | -134 | -149 | ||
| Profit before tax | 4,778 | 4,744 | ||
| Income taxes | (6) | -1,264 | -1,413 | |
| Profit for the period | 3,515 | 3,331 | ||
| Profit attributable to shareholders of MOBOTIX AG | 3,515 | 3,331 | ||
| Earnings per share (diluted/basic) in EUR* | 0.27 | 0.25 | ||
* taking into account the share split
| Consolidated Statement of Comprehensive Income | Oct. 1, 2011- Dec. 31, 2011 |
Oct. 1, 2010- Dec. 31, 2010 |
|---|---|---|
| Profit for the period | 3,515 | 3,331 |
| Difference resulting from currency translation | -2 | 10 |
| Accumulated other comprehensive income (after tax) | -2 | 10 |
| Total comprehensive income for the period | 3,513 | 3,341 |
| Profit attributable to shareholders of MOBOTIX AG | 3,513 | 3,341 |
Earnings Per Share € 0.27 (after the share split)
| EUR '000s | see notes | Dec. 31, 2011 | Sept. 30, 2011 |
|---|---|---|---|
| Intangible assets | (7) | 2,116 | 2,141 |
| Property, plant and equipment | (8) | 22,402 | 22,481 |
| Prepaid expenses | 70 | 74 | |
| Deferred tax assets | 214 | 179 | |
| Non-current assets | 24,801 | 24,876 | |
| Inventories | (9) | 13,894 | 14,967 |
| Trade receivables | 7,348 | 6,136 | |
| Other assets | 5,286 | 5,520 | |
| Cash and cash equivalents | 3,566 | 6,994 | |
| Prepaid expenses | 374 | 533 | |
| Current assets | 30,468 | 34,151 | |
| ASSETS | 55,269 | 59,027 | |
| Subscribed capital | 13,271 | 4,424 | |
| Capital reserves | 817 | 9,665 | |
| Treasury shares | -778 | -778 | |
| Accumulated other comprehensive income | 34 | 36 | |
| Profit or loss carried forward | 19,058 | 23,892 | |
| Profit for the period | 3,515 | 1,767 | |
| Equity | (10) | 35,918 | 39,006 |
| Liabilities to banks | (13) | 9,235 | 9,457 |
| Deferred tax liabilities | 693 | 722 | |
| Non-current liabilities | 9,929 | 10,179 | |
| Tax provisions | (11) | 2,855 | 2,314 |
| Other provisions | (12) | 264 | 253 |
| Liabilities to banks | (13) | 1,164 | 1,164 |
| Trade payables | 3,499 | 3,681 | |
| Other liabilities | (14) | 1,640 | 2,429 |
| Current liabilities | 9,423 | 9,842 | |
| EQUITY AND LIABILITIES | 55,269 | 59,027 |
Total Assets € 55.3m (-6.4%)
| Oct. 1, 2011- | Oct. 1, 2010- | ||
|---|---|---|---|
| EUR '000s | Dec. 31, 2011 | Dec. 31, 2010 | |
| Profit before tax for the period | 4,778 | 4,744 | |
| + | Net interest income or expense | 129 | 133 |
| + | Depreciation and amortization of property, plant and equipment, and intangible assets |
887 | 733 |
| + | Interest received | 4 | 24 |
| + | Increase in other provisons | 11 | 12 |
| - | Profit on disposal of non-current assets | -15 | 0 |
| + | Other non-cash expenses | 5 | 5 |
| Operating profit before changes in working capital | 5,799 | 5,650 | |
| +/- Decrease/Increase in inventories, trade receivables and other assets not attributable to investing or financing activities |
255 | -1,295 | |
| -/+ Decrease/Increase trade payables and other liabilities not attributable to investing or financing activities |
-971 | 103 | |
| Cash flow from operating activities before tax | 5,083 | 4,458 | |
| - | Income tax paid | -786 | -440 |
| Cash flow from operating activities | 4,297 | 4,018 | |
| - | Cash paid for purchases of property, plant and equipment | -584 | -929 |
| - | Cash paid for purchases of intangible assets | -213 | -385 |
| + | Cash received from subsidies | 0 | 89 |
| + | Proceeds from sales of current available-for-sale financial assets | 0 | 476 |
| + | Cash received from disposals of property, plant and equipment | 25 | 0 |
| Cash flow from investing activities | -772 | -749 | |
| - | Dividends paid | -6,601 | -4,424 |
| - | Purchase of treasury shares | 0 | -333 |
| - | Cash received from borrowings | -268 | -2,217 |
| - | Interest paid | -88 | -109 |
| Cash flow from financing activities | -6,956 | -7,083 | |
| Net change in cash and cash equivalents | -3,431 | -3,814 | |
| Effect of exchange rate and other changes on cash and cash equivalents | 3 | 2 | |
| Cash and cash equivalents at the beginning of the reporting period | 6,994 | 9,624 | |
| Cash and cash equivalents at the end of the reporting period | 3,566 | 5,812 |
| Subscribed | Capital | Treasury | Accumulated other comprehensive |
Profit or loss carried |
Result for | ||
|---|---|---|---|---|---|---|---|
| EUR '000s Balance as of Oct. 1, 2010 |
capital 4,424 |
reserves 9,665 |
shares -445 |
income 40 |
forward 15,118 |
the period 2,910 |
Total 31,712 |
| Dividend payment | -4,424 | -4,424 | |||||
| Purchase of treasury shares | -333 | -333 | |||||
| Currency translation | 10 | 10 | |||||
| Profit for the period | 3,331 | 3,331 | |||||
| Balance as of Dec. 31, 2010 | 4,424 | 9,665 | -778 | 50 | 10,694 | 6,241 | 30,296 |
| Currency translation | 7 | 7 | |||||
| Profit for the period | 6,957 | 6,957 | |||||
| Balance as of June 30, 2011 | 4,424 | 9,665 | -778 | 57 | 10,694 | 13,198 | 37,260 |
| Balance as of July 1, 2011 | 4,424 | 9,665 | -778 | 57 | 23,892 | 0 | 37,260 |
| Currency translation | -21 | -21 | |||||
| Profit for the year | 1,767 | 1,767 | |||||
| Balance as of Sep. 30, 2011 | 4,424 | 9,665 | -778 | 36 | 23,892 | 1,767 | 39,006 |
| Balance as of Oct. 1, 2011 | 4,424 | 9,665 | -778 | 36 | 25,659 | 0 | 39,006 |
| Dividend payment | -6,601 | -6,601 | |||||
| Capital increase from reserves |
8,847 | -8,847 | 0 | ||||
| Currency translation | -2 | -2 | |||||
| Profit for the period | 3,515 | 3,515 | |||||
| Balance as of Dec. 31, 2011 | 13,271 | 818 | -778 | 34 | 19,058 | 3,515 | 35,918 |
For a more detailed explanation concerning changes in equity, please refer to section (10) of the Notes to the Condensed Consolidated Financial Statements.
Equity € 35.9m Equity-To-Assets Ratio 65.0%
MOBOTIX AG was established on June 21, 1999. Since September 30, 2009, the Company's registered office has been in Winnweiler-Langmeil (Kaiserstrasse, 67722 Winnweiler-Langmeil).
MOBOTIX AG is a European technology leader and system provider in the production of highresolution digital, network-based video security systems, video management software and systems accessories. The core technology of MOBOTIX AG is its proprietary, internally manufactured, fully digital network cameras.
MOBOTIX products are sold worldwide primarily via distributors, qualified systems integrators and specialist retailers.
Pursuant to the resolution of the Annual General Meeting of MOBOTIX AG of October 28, 2010, the fiscal year of MOBOTIX AG was changed effective October 1, 2011, and from that date will begin on October 1 of one year and end on September 30 of the following year. A short fiscal year was created for the period from July 1, 2011 to September 30, 2011.
The consolidated interim financial statements of MOBOTIX AG as of December 31, 2011 have been prepared in accordance with all International Financial Reporting Standards (IFRSs), International Accounting Standards (IASs), and interpretations of the International Financial Reporting Interpretations Committee and the Standing Interpretations Committee (IFRIC / SIC) that have been adopted by the European Union and are applicable to the fiscal year 2011/12.
The accounting policies applied in the consolidated interim financial statements as of December 31, 2011, which have been prepared on the basis of IAS 34 "Interim Financial Reporting," are essentially the same as those used in the consolidated financial statements, for the short fiscal year 2011.
The condensed consolidated interim financial statements for the period under review have been reviewed by KPMG AG, Wirtschaftsprüfungsgesellschaft. This interim report is also consistent with German accounting standard No. 16 on interim financial reporting (GAS 16) issued by the German Accounting Standards Committee (GASC).
For further information on the accounting policies applied, please refer to the consolidated financial statements for the year ended September 30, 2011.
Unless stated otherwise, all figures in the condensed consolidated financial statements are stated in thousands of Euro (EUR '000s). The translation of Euro into thousands of Euro may give rise to rounding differences of plus or minus one unit (EUR '000s or percent).
The basis of consolidation used by MOBOTIX AG for the three-month period ended December 31, 2011 is the same as that used in the consolidated financial statements for the fiscal year ended September 30, 2011 and in the period of the prior year. MOBOTIX CORP has been retroactively included in the consolidated financial statements of MOBOTIX AG from the date in 2003 when MOBOTIX CORP was established.
MOBOTIX Ltd., Nottingham, United Kingdom has not been included in the consolidated financial statements as it is not material to the consolidated financial statements of MOBOTIX AG. MOBOTIX Ltd. is currently not operating.
A breakdown of revenue by region and product line is presented as part of the segment information.
Other own work capitalized in the first three months of fiscal year 2011/12 refers primarily to development costs capitalized in the amount of €177 thousand (prior year: €361 thousand).
| EUR '000s | Oct. 31, 11- Dec. 31, 11 |
Oct. 31, 10- Dec. 31, 10 |
|---|---|---|
| Cost of raw materials, supply and merchandise |
4,341 | 4,510 |
| Cost of purchased services |
35 | 44 |
| Total | 4,376 | 4,554 |
Cost of materials comprises any materials used for the production of cameras. This item also comprises to a small extent expenses for purchased services, which include expenses for outsourced manufacturing activities.
| EUR '000s | Oct. 31, 11- Dec. 31, 11 |
Oct. 31, 10- Dec. 31, 10 |
|---|---|---|
| Wages and salaries | 4,886 | 4,604 |
| Social security | 727 | 630 |
| Total | 5,613 | 5,234 |
The rise in staff costs reflects in particular the increase in the workforce. In the first three months of 2011/12, the Company employed 286 persons in full-time equivalent positions (prior year: 245) (excluding trainees and temporary staff, including 4 Management Board members (prior year: 2). As of the reporting date, the Company employed 300 (prior year: 250) persons (excluding trainees and temporary staff, including 4 Management Board members (prior year: 2); by headcount).
At EUR 4,550 thousand, other operating expenses are roughly at the level of the prior year and include all expenses that cannot be assigned to other items. They include in particular the cost of marketing, trade fairs and exhibitions, shipping and packaging, legal and consulting fees, as well as premises and maintenance.
Income taxes can be broken down as follows:
| EUR '000s | Oct. 31, 11- Dec. 31, 11 |
Oct. 31, 10- Dec. 31, 10 |
|---|---|---|
| Current taxes | 1,327 | 1,426 |
| Deferred taxes | -63 | -14 |
| Total | 1,264 | 1,412 |
The tax rate applicable as of December 31, 2011 was 26.4% (prior year: 29.8%).
The cost of developing camera housings, electronics, and software projects was capitalized at cost in the amount of EUR 177 thousand in the first three months of 2011/12 (prior year: EUR 361 thousand). At EUR 3,519 thousand, the development costs capitalized as of December 31, 2011 (September 30, 2011: EUR 3,342 thousand) comprise all costs directly attributable to the development process. The accumulated amortization and impairment amounted to EUR 1,523 thousand as of December 31, 2011 (September 30, 2011: EUR 1.305 thousand). The development projects are amortized on a uniform, straightline basis over a period of three years following completion.
Additions to property, plant and equipment of €576 thousand primarily relate to subsequent manufacturing costs for the construction of the new production hall at the Langmeil location, costs for tools as well as operating and office equipment.
Inventories are composed of the following:
| EUR '000s | Dec. 31, 11 | Sep. 30, 10 |
|---|---|---|
| Raw materials and supplies |
7,697 | 7,872 |
| Work in progress | 3,176 | 3,847 |
| Finished goods | 3,021 | 3,248 |
| Total | 13,894 | 14,967 |
The decrease in inventories was caused by measures targeted at reducing the capital commitment in the quarter.
Please refer to the statement of changes in equity for an overview of the development of equity.
By resolution of the Annual General Meeting of October 21, 2011, the Company's share capital was increased by EUR 8,847,628.00 from EUR 4,423,814.00 to EUR 13,271,442.00 pursuant to the provisions of the German Stock Corporation Act concerning the capital increase from reserves (Sections 207 et seq. AktG) by conversion of an amount of EUR 8,847,628.00 from the capital reserve into share capital. Pursuant to Section 207 (2) Sentence 2 AktG, the capital increase was effected without the issue of new shares in such a way that the share capital (as explained above) was increased, and as a result, the proportional
amount of the share capital attributable to the individual share was increased to EUR 3.00.
The total share capital of the Company, which was increased in this manner, in the amount of EUR 13,271,442.00 divided into 4,423,814 bearer shares, will be redivided according to a ratio of 1:3 (share split) and is now divided into 13,271,442 bearer shares. After the share split, the one bearer share with a proportional amount of the Company's share capital of EUR 3.00 will be replaced by three bearer shares with a proportional amount of the share capital of EUR 1.00 attributed to each share.
The Annual General Meeting of MOBOTIX AG, Winnweiler-Langmeil, held on October 21, 2011 resolved to pay out a dividend in the amount of EUR 1.50 per share for fiscal year 2010/11. This corresponds to a dividend of EUR 6,601 thousand. The treasury shares held by the Company do not carry dividend rights. The dividend was paid out on October 24, 2011.
By resolution of the Annual General Meeting of September 30, 2009, the Management Board was authorized to acquire treasury shares of the Company until September 30, 2014. The shares to be acquired based on this authorization combined with other shares of the Company, which the Company has already acquired or still possesses, may not exceed more than 10% of the Company's share capital at the time of the resolution or its exercise, accordingly 1,327,144 shares (number after the share split).
The Management Board of MOBOTIX AG adopted on July 15, 2010 to utilize the authorization of the Annual General Meeting of September 30, 2009 to acquire treasury shares pursuant to Section 71 (1) No. 8 AktG in the amount of up to 45,000 shares (number after the share split). The repurchase program was started on July 19, 2010.
Furthermore, the Management Board of MOBOTIX AG adopted on October 5, 2010 to change the conditions of the current share repurchase program to make it possible to acquire up to 150,000 shares (number after the share split).
As of December 31, 2011, the Company had acquired 70,047 shares (number after the share split). The treasury shares deducted from shareholders' equity are recognized at cost.
During the period under review, the weighted number of shares outstanding was 13,201,395 (prior year: 13,204,078, taking into account the share split).
The tax provisions of EUR 2,855 thousand (September 30, 2011: EUR 2,314 thousand) include provisions for municipal trade tax, corporation tax, and the solidarity surcharge for the assessment periods 2011 and 2012.
The other provisions primarily include provisions for warranties.
Loans in the amount of €268 thousand were repaid as scheduled in the first three months of fiscal year 2011/12.
The other liabilities have terms of less than one year. They primarily comprise personnel liabilities.
During the period under review, no changes of any significance occurred with regard to transactions with related parties in comparison with the short fiscal year 2011 and with fiscal year 2010/11.
No definable business segments exist within MOBOTIX AG, the operating results of which are regularly reviewed by the Management Board with regard to decisions concerning the allocation of resources to these business segments or the measurement of the profitability. Due to internal structures and its size, resource allocation management within the MOBOTIX Group takes place based on sales revenues, primarily according to regions, but also according to product lines. Profitability ratios or earnings statements are only prepared on the level of the entire company. Thus, no separate financial information is calculated for definable business segments. In this respect, no reportable segments exist in terms of IFRS 8.
Revenue by product line is broken down as follows:
| EUR' 000s | Oct. 1, 11- Dec. 31, 11 |
Oct. 1, 10- Dec. 31, 10 |
|---|---|---|
| Fixed Cams | 8,947 | 8,905 |
| Dome Cams | 10,886 | 9,667 |
| Other | 958 | 987 |
| Total | 20,791 | 19,559 |
Revenue by region is broken down as follows:
| EUR' 000s | Oct. 1, 11- Dec. 31, 11 |
Oct. 1, 10- Dec. 31, 10 |
|---|---|---|
| Germany | 5,333 | 4,987 |
| Rest of Europe | 7,103 | 7,870 |
| Rest of the world | 8,355 | 6,702 |
| Total | 20,791 | 19,559 |
The Company's product lines have not changed significantly compared to September 30, 2011.
No single customer generates more than 10% of total revenue.
Winnweiler-Langmeil, January 19, 2012
The Management Board
Dr. Ralf Hinkel • CEO MOBOTIX AG
Lutz Coelen • CFO MOBOTIX AG
Dr. Magnus Ekerot • CSO MOBOTIX AG
Dr. Oliver Gabel • CTO MOBOTIX AG
To the best of our knowledge, we hereby affirm that, pursuant to the generally accepted accounting principles for interim reporting, the consolidated financial statements give a true and fair view of the net assets, financial position and the results of operations of the Group, that the Interim Report presents the development of the Group's business, including its performance and situation, in such a way that it is a true and fair reflection, and that it describes the major risks and opportunities inherent in the development of the Group during the remaining financial year.
Winnweiler-Langmeil, January 19, 2012
The Management Board
Dr. Ralf Hinkel • CEO MOBOTIX AG Dr. Magnus Ekerot • CSO MOBOTIX AG
Lutz Coelen • CFO MOBOTIX AG Dr. Oliver Gabel • CTO MOBOTIX AG
To MOBOTIX AG, Winnweiler-Langmeil
We have reviewed the Condensed Interim Consolidated Financial Statements of the MOBOTIX AG, Winnweiler-Langmeil comprising a statement of financial positions, an income statement, a statement of comprehensive income, a statement of cash flows, a statement of changes in equity and condensed notes - together with the Interim Group Management Report of the MOBOTIX AG, Winnweiler-Langmeil, for the period from October 1 to December 31, 2011 that are part of the quarterly financial report according to § 37x Abs. 3. WpHG ("Wertpapierhandelsgesetz": "German Securities Trading Act"). The preparation of the Condensed Interim Consolidated Financial Statements in accordance with those IFRS applicable to interim financial reporting as adopted by the EU, and of the Interim Group Management Report in accordance with the requirements of the WpHG applicable to interim group management reports, is the responsibility of the Company's management. Our responsibility is to issue a report on the Condensed Interim Consolidated Financial Statements and on the Interim Group Management Report based on our review.
We performed our review of the Condensed Interim Consolidated Financial Statements and the interim group management report in accordance with the German generally accepted standards for the review of financial statements promulgated by the Institut der Wirtschaftsprüfer (IDW). Those standards require that we plan and perform the review so that we can preclude through critical evaluation, with a certain level of assurance, that the Condensed Interim Consolidated Financial Statements have not been prepared, in material aspects, in accordance with the IFRS applicable to interim financial reporting as adopted by the EU, and that the interim group management report has not been prepared, in material aspects, in accordance with the requirements of the WpHG applicable to interim group management reports. A review is limited primarily to inquiries of company employees and analytical assessments and therefore does not provide the assurance attainable in a financial statement audit. Since, in accordance with our engagement, we have not performed a financial statement audit, we cannot issue an auditor's report.
Based on our review, no matters have come to our attention that cause us to presume that the Condensed Interim Consolidated Financial Statements have not been prepared, in material respects, in accordance with the IFRS applicable to interim financial reporting as adopted by the EU, or that the interim group management report has not been prepared, in material respects, in accordance with the requirements of the WpHG applicable to interim group management reports.
Saarbrücken, January 19, 2012
KPMG AG Wirtschaftsprüfungsgesellschaft
Geis-Sändig Palm
Auditor Auditor
| CCD | Image sensor Charged Coupled Device; a light sensitive hardware component |
|---|---|
| CIF | Common Intermediate Format, an image compression format |
| CMOS image sensor | Complementary Metal Oxide Semiconductor - a light sensitive hardware component |
| CPU | Central Processing Unit |
| DVR | Digital Video Recorder |
| Fixdome | Camera without any mechanical moving parts, inside a dome housing |
| HDTV | High Definition TV |
| HiRes | High Resolution |
| IP network | Data network based on Internet protocols |
| IP standard | Standardized network protocol |
| JPEG format | A lossy image data format which reduces the file size by compressing the same or similar image content. |
| LAN | Local Area Network; local network |
| Control center computer | The computer at a central control center that enables the information supplied by the camera to be handled |
| Megapixel | Image size of more than 1 million pixels |
| MPEG format | Video format for creating data steams for streaming images, defined by the Motion Picture Experts Group |
| SD Card | SD Memory Card (short for Secure Digital Memory Card) is a digital memory device that works according to the principle of flash memory, such as a USB card |
| TCP/IP protocol | Transmission Control Protocol/Internet Protocol |
| Video server | Central storage unit for video images or video streams |
| VoIP | Voice over IP; standard for voice transmission via IP networks |
| EBITDA | Earnings before interest, taxes, depreciation and amortization |
|---|---|
| EBITDA margin | EBITDA divided by total output multiplied by 100 (the higher the percentage, the higher the financial performance) |
| EBIT | Earnings before interest and taxes |
| EBIT margin | EBIT divided by total output multiplied by 100 (the higher the percentage, the higher the financial performance) |
| Total output | Revenue plus/minus changes in inventories plus other own work capitalized |
| Gross profit | Total output less cost of materials |
| Dividend yield | Dividend divided by share price multiplied by 100 |
| Equity-to-assets ratio | Equity as reported on the balance sheet divided by total assets multiplied by 100 (the higher the figure, the lower the debt-to-equity ratio) |
| Free float | Shares of a public listed company that are freely available to the investing public |
| Market capitalization | Number of shares multiplied by share price |
This financial report contains MOBOTIX AG statements and information which relate to future periods. Such future-oriented statements may be recognised from wording such as plan, expect, intend, endeavour, will, estimate, assume, aim at or similar such terms. Statements of this kind have been made on the basis of current circumstances and current expectations and may differ considerably from the actual development both to positive and negative effect. The following factors, amongst others, may give rise to uncertainties: changes to the overall economic situation both nationally and internationally, changes to the underlying political situation, the introduction of new products or technologies by other companies, changes to investment activities in the customer markets important to MOBOTIX AG, changes to exchange rates and interest rates, integration of acquired companies along with other factors. MOBOTIX AG does not accept any obligation over and above existing legal obligations to correct or update future-oriented statements.
This is an English translation of the German original. Only the German version is binding. The financial reports from MOBOTIX AG are available as pdf files on the homepage (www.mobotix.com).
Announcement of the Half-Year Report 2011/12 May 15th, 2012 Announcement of the Nine-Month Report 2011/12 August 22nd, 2012 German Equity Forum, Frankfurt November 12th - 14th, 2012 Annual General Meeting of the Shareholders 2012 December 2012
| Lutz Coelen | MOBOTIX AG |
|---|---|
| CFO | Investor Relations |
| Phone: +49 6302 9816-111 | Kaiserstrasse |
| Fax: +49 6302 9816-190 | 67722 Langmeil |
| E-mail: [email protected] | E-mail: [email protected] |
MOBOTIX AG Security-Vision-Systems Kaiserstrasse D-67722 Langmeil, Germany Phone.: +49 6302 9816-0 Fax: +49 6302 9816-190 E-mail: [email protected] www.mobotix.com
... the HiRes Video Company
MOBOTIX AG Security-Vision-Systems Kaiserstrasse D-67722 Langmeil, Germany Phone: +49 6302 9816-0 Fax: +49 6302 9816-190 E-mail: [email protected] www.mobotix.com
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