Investor Presentation • Feb 16, 2011
Investor Presentation
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The HiRes Video Company
English 02/2011
MOBOTIX AG was able to exceed its outstanding first quarter results in the second quarter of fiscal year 2010/11. A quarterly increase of almost 47% resulted in a cumulative revenue growth of 45% to €34.6 million in the first six months of the fiscal year. The revenue growth was particularly strong in the USA. In total, exports rose to 74% and EBIT grew by almost 100% to €9.0 million compared to the first six months of the previous year.
This growth results from the continued expansion of new sales regions and by the ongoing high demand for MOBOTIX new hemispheric camera technology, which can monitor an entire room without any blind spots replacing multiple standard cameras with a single camera.
The conversion to a new processor technology has been completed for the most part. Only the dual cameras are left to be converted to the new technology in the current fiscal year. In addition to higher computing power, the new platform provides the advantage that all MOBOTIX products, including the new door station, now have an identical circuit board. This will give MOBOTIX enormous savings potential on a sustained basis.
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The in-house developed T24 IP Video Door Station is almost ready for delivery. This product enables MOBOTIX to use the existing hemispheric technology to enter the new, yet closely related market for access control and door stations. When the door bell is rung, a connection to a standard VoIP phone or PC is established over the network. This means that the door station can be controlled and the door opened from anywhere in the world. The integration of iPhones and iPads plays an important role in this technology.
I am convinced that we will continue to achieve strong growth in the current fiscal year as well, and that the new product segment will play an important part. Our partners and customers are extremely interested. Due to the early start of winter this year in Germany, the new 6,000 m2 large production hall currently under construction will be ready for occupancy during the summer vacation period.
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 Six 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 |
| 6 months (July 1 to December 31, 2010) | 2010/11 | 2009/10 | Delta % |
|---|---|---|---|
| Financial performance | €'000s | €'000s | |
| Total Output | 36,309 | 24,272 | +49.6 |
| Revenue | 34,623 | 23,908 | +44.8 |
| Thereof outside of Germany (in %) | 74.4 | 67.7 | |
| EBITDA | 10,436 | 5,648 | +84.8 |
| EBITDA as % of total output | 28.7 | 23.3 | |
| EBIT | 9,044 | 4,736 | +91.0 |
| EBIT as % of total output | 24.9 | 19.5 | |
| Profit before tax | 8,796 | 4,533 | +94.1 |
| Return on revenue in % before tax | 25.4 | 19.0 | |
| Profit for the period | 6,241 | 3,176 | +96.5 |
| Cash flow from operating activities | 6,176 | 4,119 | +49.9 |
| Financial position | Dec. 31, 2010 | June 30, 2010 | |
| Equity | 30,296 | 29,283 | +3.5 |
| Equity-to-assets ratio in % | 59.3 | 62.4 | |
| Total assets | 51,073 | 46,936 | +8.8 |
| Non-current assets | 21,590 | 19,598 | +10.2 |
| Current assets | 29,483 | 27,339 | +7.8 |
| Thereof cash and cash equivalents | 5,812 | 7,312 | -20.5 |
| Employees | |||
| Number of employees (Reporting date) | 272(1) | 250(1) | +8.8 |
| Revenue per employee | 147(2) | 118(3) | +24.6 |
| EBIT per employee | 38 (2) | 23(3) | |
| Key figures per share (in €) | |||
| Earnings per share (EPS)(4) | 1.42 | 0.72 | +97.1 |
| Dividend | 1.01 | 1.00 | +0.0 |
| Cash flow as per DVFA/SG(4) | 1.76 | 0.93 | +89.2 |
1) Including trainees and temporary staff, 2 (prior year: 2) members of the Management Board; by headcount
2) Based on an average of 236 employees.
3) Based on an average of 203 employees
4) Based on an average of 4.410m (previous year 4.424m) shares.
Total Output € 36.3m (+49.6%)
As a publicly traded company, MOBOTIX AG sees itself as a software company with an in-house hardware development for digital, high-resolution and network-based videosecurity solutions.
Whether it is embassies, airports, gas-stations, highways or private homes, MOBOTIX video systems are found world-wide with over onehundred thousand units in operation on every continent. In addition to the actual IP video camera with megapixel resolution, MOBOTIX also produces interface components and video management software for operating complex 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 270 employees, and a virtual 70% export share to date, MOBOTIX has attained a 8% 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 search-analysis phase. Details of the hemispheric live image, resembling a fish-eye, are already 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 itself 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 at around 50%, MOBOTIX has continued to rapidly gain global market share since 1999.
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.
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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.
The networking of cameras incl. power supply is encoded and occurs via a normal computer network and not via video cable. This has the advantage of connecting from anywhere in the world with glass, copper or even wireless access using affordable standard IT technology components.
The Vatican Apostolic Library holdings are amongst the most precious in the world. The origins of today's collection date back to 1447. The library's inventory consists of more than two million books and manuscripts. To safeguard these unique documents from misappropriation, 78 MOBOTIX systems, including several hemispheric cameras were installed. To protect the priceless art and literary collections, the highest quality of standards were the utmost important
factor in selecting a video surveillance system; this meant that crystal clear, high-resolution images of the events in the rooms of the library were just as essential as the absolute
reliability and failure-resistant cameras used. An essential decision factor in favor of MOBOTIX was the possibility of guaranteeing the absolute safety of the folios, manuscripts, maps, etc. through the use of RFID technology. Should an attempt be made to remove one of the exhibit exemplars from the library without authorization – for example, the interaction between the RFID system and the MOBOTIX video security system would be immediately recognize the piece, and instantaneously trigger an alarm.
Located at just about one hour's drive from Berlin by car, the Tropical Islands Resort – the world's largest, self-sustaining, indoor tropical paradise, has been created on a 66,000 square meter interior area. A total of 13 MOBOTIX cameras offer a nice overview of the "South Sea" and the tropical village. However, the main reason for the installation was not to convey a "vacation feeling", but instead to satisfy the government requirements of various agencies and fulfill corporate guidelines for the monitoring of "hot spots". The MOBOTIX cameras enable the security staff to view wherever it may be necessary to record images, for example, the merchandising area, and cash-offices. MOBOTIX technology also safeguards the delivery doors, the access to the outdoor areas, as well as the server rooms.
The simple number plate recognition by the cameras makes it easy to gather statistical data to determine the regions from which the guests arrive, for example.
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.
The harbor in Lavagna is one of the largest in the entire Mediterranean. Its 1,600 berths make
it a destination for ships and yachts from all over the world. The requirement to integrate the harbor as part of the city while safeguarding the boats against theft and vandalism without limitations was not an easy task. However, 64 DualDome cameras, 3 Allround cameras and 12 Hemispheric cameras from MOBOTIX provide an overview of the entire harbor area. In addition to image quality, the weather-resistant robust housings and the wide operating temperature range from -30 to +60 °C are the most important decision-making criteria in favor of the MOBOTIX solution. Personnel from the security staff and law enforcement authorities are the only ones permitted to have viewing access to the network cameras. The number of on-board thefts has been significantly reduced since the installation. Moreover, the video recording allowed four perpetrators to be identified and handed over to police authorities for unlawful appropriation.
The Donbass Arena is the first East European stadium built to meet UEFA regulations as an elite stadium, and has been selected as the main venue for the European Championships in 2012. Over 50,000 spectators can find seats at the immense arena. Not only are sport events well accommodated, but large venues, like concerts, have access to 53 fast-food outlets, 3 restaurants, 4 bars, a lounge bar, a Fan-Café, a fitness studio, the FC Schachtar Museum, and a merchandising shop. 528 MOBOTIX cameras
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keep everything in sight, both inside, and outside the arena on its perimeter. No extra software was required while all the necessary applications were available via the camera, and
the license-free, professional video-management system, MxControlCenter. "We selected MOBOTIX cameras for a number of convincing reasons – the picture quality, the zoom on trouble-makers, and detailed image captures that I could immediately send to the police for identification" explained Sergey Burgula, Head of Security at Donbass Arena. "Ultimately, we want our guests to feel safe and enjoy their stay. That's why we chose the most advanced security technology" said Olexandr Atamanenko, the Stadium Manager.
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.
vPTZ 1 vPTZ 2 Hemispheric View Fisheye
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.
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.
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).
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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.
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MOBOTIX cameras are also able to store up to 32 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 most important stock markets in Europe, the Americas and Asia continued their upward trend in the fouth quarter of 2010. Especially the German indices were able to hold their ground very well in comparison to the other European indices. Thus, the DAX succeeded to overcome the 7,000-point mark for the first time in two and a half years.
The MOBOTIX share has proven to be an extremely lucrative investment since its IPO in October 2007 and it has been one of the most successful IPO's of the last years, providing one of the highest increases in share value for the initial investors. An initial investor (IPO date October 10, 2007) realized an increased value of 257.5%. In contrast, all relevant indices posted considerable losses during the same period. The DAX, for example, lost 13.4% of its value and the technology-oriented TecDAX lost 15.5% 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 22.5% 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 first half of fiscal year 2010/11. In the second quarter, the MOBOTIX share reached its high of EUR 58.79 on December 13, 2010, while a low of EUR 34.99 was reached on October 07, 2010. The closing price on the reporting date of December 31, 2010 was EUR 52,90. Accordingly, the MOBOTIX share won 75.9% of its value (including dividend) in the period under review.
| MOBOTIX share | 257.5% | 75.9% |
|---|---|---|
| DAX | -13.4% | 11.0% |
| TecDAX | -15.5% | 8.9% |
| GEX | -22.5% | 5.9% |
*Reporting Date October 10, 2007
MOBOTIX AG pursues a growth-oriented dividend policy that corresponds to corporate growth and the respective business situation. For fiscal year 2009/10, the Management Board distributed a dividend of approximately €1.01 per share (previous year €1.00).
At the end of the first six months of fiscal year 2010/11, 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:
The Dr. Ralf Hinkel Holding GmbH holds 50.14% of the shares, Andreas Putsch holds 9.91% and Klaus Borchers 5.63%. A share buyback program was started in July 2010. As of Dezember 31, 2010 MOBOTIX AG has acquired 23,349 own shares as part of the share buyback program. The free float as defined by the Deutsche Börse Group is 33.80%.
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 Group.
Also in the current fiscal year 2010/11, MOBOTIX AG will present itself to interested analysts and investors at e.g. the German Equity Forum in Frankfurt, the European Small Mid Cap Conference of Bank of America Merrill Lynch in June 2011 in London, as well as further roadshows.
On October 28, 2010, MOBOTIX' annual general meeting was held at the company's headquarters. With approximately 145 shareholders, 76.60% of the authorized capital was represented. The constructive and interesting questions and the extraordinarily high agreement of over 99.66% for all proposals on the agenda clearly reflected the shareholders confidence in the company.
Since the fiscal year 2008/09, Hauck & Aufhäuser and GBC have now taken up coverage of MOBOTIX AG, in addition to the DZ Bank and the Equinet AG. Thus, market tracking and evaluation of the Company is now assessed by four analysts continuously.
| Market capitalization* | 234.02 Mio. EUR | |||
|---|---|---|---|---|
| Closing price* | 52.90 EUR | |||
| Low (July 07, 2010) | 28.50 EUR | |||
| High (December 13, 2010) | 58.79 EUR |
*as of reporting date December 31, 2010
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| 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 | 4,423,814 EUR |
| No. of shares outstanding | 4,423,814 |
| Indexes | GEX, CDAX, Technology All Share, Prime All Share |
| Analyst Coverage | DZ Bank, Equinet AG, Hauck & Aufhäuser and GBC AG |
Market Capitalisation € 234.02m
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). The introduction of the first hemispheric camera with a 360° panorama view represented the
most successful product launch in the history of MOBOTIX. In addition to its network cameras, MOBOTIX also offers the MxControlCenter, a complete video management solution as a primary control center software package that is able to integrate cameras from other manufacturers, as well as MxEasy – a video software solution for the consumer and semi-profes-
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sional segment. The MOBOTIX video management solutions are offered free of charge. In addition, various accessories are available in the Company's product range. During the past fiscal year, the first products were introduced in the new access control and communication product range. These included in particular the T24 door station with various accessories.
MOBOTIX T24
A significant development focus during the past fiscal year was the conversion of the product line to the new P3 processor technology to double the camera's computing power. The switch to the new processor technology was made in order to use one single circuit board in four separate camera lines (mono camera lines). During the current calendar year, plans include converting the dual camera lines D12 and M12 to the same circuit board. Once the cameras are converted to the new circuit boards, they will be offered on the market as the D14 and M14 camera series, respectively. This systematic implementation of the platform strategy will provide additional substantial savings potential for the years to come.
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.
The market research firm IMS Research expects the global sales in the network cameras market to grow by an annual average of approximately 27.0% from 2009 to 2014. This assumption is based on its current study which was updated in July 2010.
In short-term, the market environment is also developing positively – as in many other industrial and service branches. The effects of the financial and economic crisis are noticeably diminishing and in many countries the first signs of a recovery are already recognizable, having a positive effect on project business.
The extent to which the recovery will last is still unclear, and subject to great uncertainty. One can observe that the anticipated growth rates in the network camera segment continue to be strong in the short term in comparison to other branches.
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Hemispheric IP Video Door Station in silver. Additional colors (white, dark gray, amber and black) are available.
Corporate development during the first six months of the current fiscal year has been characterized by continued strong growth and high profitability. With a market environment that is still recovering, the MOBOTIX Group was able to reconnect with the sales and earnings development experienced before the financial crisis began. Investments in new staff and distribution activities during the 2009/10 fiscal year have had a noticeable impact. Both the growth in revenue (44.8%, previous year: 8.7%) and the EBIT margin (24.9%, previous year: 19.5%) have increased noticeably in comparison to the same period of the previous fiscal year.
During the first six months of the fiscal year 2010/11, MOBOTIX Group revenue grew by 44.8% to €34.6 million (prior year: €23.9 million), and pretax earnings increased by 94.1% to €8.8 million. Total output (sales revenue, increase in finished goods and work in progress, and other own work capitalized) rose during the first half of 2010/11 by €12.0 million to €36.3 million.
EBITDA (28.7% of total output; earnings before interest, taxes, depreciation and amortization) came to €10.4 million (previous year: €5.6 million). EBIT (24.9% of total output; earnings before interest and taxes) amounted to €9.0 million (previous year: €4.7 million). Net income for the period (return on sales 18.0%) climbed by 96.5% to €6.2 million (previous year: €3.2 million).
A large part of revenue growth continued to be achieved through increased sales of dome cameras, which rose by 65.3% from €10.2 million to €16.9 million. Sales revenues for fixed cameras grew by 30.0% to €16 million in comparison with the same period last year. The growth driver was once again, the export business. The export ratio amounted to 74.4% during the first six months compared to 67.7% for the same period in the previous year. In Germany, revenue rose by 15.0% from €7.7 million to €8.9 million. In the rest of Europe (excluding Germany), revenue climbed 37.6% to €14.0 million. For the rest of the world, revenue rose from €6.0 million to €11.7 million, representing a 95.6% growth. The material usage ratio (cost of materials in relation to total operating performance) of 25.8% remained nearly identical in comparison to the first six months of the 2009/10 fiscal year.
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Despite of a €2.4 million increase in staff costs, the personnel usage ratio (staff costs to total output) decreased from 27.7% to 25.1%. New hires were carried out in particular in the sales department.
Other operating expenses (€7.7 million; previous year: €5.9 million) increased by 30% mainly due to higher distribution expenses dependent on sales such as shipping charges and packaging costs and increased promotional and marketing costs. Promotional and marketing costs primarily relate to expenses for trade fairs and partner conferences as well as marketing material.
The subsidiary MOBOTIX CORP reported a revenue increase of 58.5% (previous year: 28.3%), leading to a slight negative net income for the period of \$74 thousand (previous year: \$ -224 thousand). This includes currency translation losses of \$148 thousand (previous year: \$ -10 thousand).
Development costs of €0.6 million were capitalized during the first six months of 2010/11. Property, plant and equipment grew by €1.7 million (+9.5%) to €19.3 million – with new investments in property, plant and equipment totaling €3.3 million. The investments primarily involved the construction of new production facilities at the Langmeil site (€2.3 million), as well as investments in technical systems. In September 2010, government subsidies were granted for the construction of the new production facilities in the amount of €1.1 million. The subsidy grants have been proportionately offset against the acquisition costs for the new construction during the period under review. The investments in technical system mostly consist of investments in injection molding tools as well as IT equipment. Inventories grew by €3.8 million, or 49.9%, to €11.4 million due to switching the production lines to a new processor technology, the expansion of the product range to include the T24 product line, the increased stock onhand due to possible delivery bottlenecks, and the increased business activity.
In comparison to June 30, 2010, trade receivables remain almost identical with €6.4 million.
Revenue Rest Of Europe € 14.0m (+37.6%)
Revenue Rest Of World € 11.7m (+95.6%)
Other assets of €5.5 million (June 30, 2010: €5.5 million) comprise gold reserves with a carrying amount of €3.6 million, input tax claims of €0.5 million, and as yet unpaid subsidy entitlements of €0.4 million.
Cash and cash equivalents decreased by €1.5 million (20.5%) to €5.8 million due to the negative cash flow from financing activities and an outflow of funds from investing activities.
On the liabilities side, equity rose by €1.0 million despite the dividend payment of €4.4 million due to the net income for the period. The equity-to-assets ratio slightly decreased from 62.4% to 59.3% due to the increase in total assets of €4.1 million or 8.8%. Due to the acquisition of treasury shares, equity decreased by €0.8 million. The executive board of MOBOTIX AG resolved on October 5, 2010 to amend the terms and conditions of the current share buy-back programme. Taking into account the shares already purchased, the total amount of shares to be purchased shall be up to 50,000 shares of the Company. This amounts to 1.13% of the registered share capital of the Company. The remaining provisions of the share buy-back program remain unaffected.
Tax provisions increased by €1.7 million to €4.7 million, as a result of current tax liabilities. The increase in liabilities to banks is the result of taking out two loans for a total of €3.5 million to finance the construction of the new production facilities. This was offset by the repayments on a promissory note of about €2.0 million in December 2010. Trades payable grew by €0.3 million to €3.5 million due to the increase in business volume.
Other liabilities grew by €0.2 million to €2.3 million in comparison to June 30, 2010, mainly due to an increase in personnel liabilities. Based on the developments described above, the total assets of the MOBOTIX Group grew by €4.1 million (+8.8%) to €51.1 million as of December 31, 2010 in comparison to June 30, 2010.
Cash flow from the operating activities of the MOBOTIX Group was €6.2 million during the first six months of the 2010/11 fiscal year, compared to €4.1 million in the prior-year period. In comparison to the total business trend, the moderate increase in cash flow from operating activites can primarily be explained by the tactical decision of the Management to build up inventories. Due to investments in the new production facilities, cash outflows
The HiRes Video Company
for investments is, at €3.2 million, €1.2 million higher than the comparison period of the prior year. Cash paid for capital expenditure on property, plant and equipment amounted to €3.3 million. Negative cash flow from financing activities amounted to €4.5 million, results in particular from payment of the dividend for fiscal year 2009/10 in the amount of €4.4 million and repayment of a promissory note in the amount of €2.0 million. In addition, €778 thousand have been used for the acquisition of treasury shares. This was offset by taking out two loans for a total of €3.5 million to finance the construction of the new production facilities. During the comparison period of the prior year, the negative cash flow from financing activities amounted to €4.9 million due to the payment of dividends for the 2008/09 fiscal year.
The various cash flows generated during the reporting period resulted in cash and cash equivalents of €5.8 million as of December 31, 2010. The Company's solvency was guaranteed at all times during the reporting period. Due to the Company's credit-worthiness, a number of financing options are available.
Non-current liabilities increased by €2.6 million to €9.1 million compared to June 30, 2010. Non-current liabilities as a share of total assets increased from 13.8% to 17.8%. Current liabilities as of the reporting date correspond to 22.9% of total assets, compared to 23.8% as of June 30, 2010.
The very positive development of the Group's net assets, financial position and results of operations fully reflects the expectations of the Management Board.
MOBOTIX IP Video Door Station T24
Development activities also expanded further during the first six months of the 2010/11 fiscal year. As of Dezember 31, 2010, the MOBOTIX Group had 68 employees (by headcount) in its Development department. As in previous years, the primary development focus was the creation of new hardware and software products as well as the further optimization of product functionality.
An additional area of focus was the development of the IP-based Video-Door-Station T24, as well as additional accessories for the new access control and communication product range.
Outsourcing of development activities only occurs on a very small scale, and only in the area of tool design and PC board layout.
During the past six months, 26 new employees were hired. As of December 31, 2010, the MOBOTIX Group has 251 employees, compared to 233 employees (excluding trainees and temporary staff, and including 2 (previous year: 2) members of the Management Board; by headcount) at the beginning of the fiscal year. The remainder of fiscal year 2010/11 will see additional staff increases, particularly in marketing, sales and development.
The Supervisory Board of MOBOTIX AG decided on September 19, 2010 (subject to the agreement of the annual general meeting to enlarge the Management Board) to appoint two additional members to the Management Board as of January 1, 2011, and to redistribute the port-
272 (Head count incl. management board, trainees and temps)
folios of its members accordingly. The Annual General Meeting has agreed to enlarge the Management Board on October 28, 2010.
Lutz Coelen, who also managed the sales portfolio on interim basis, will continue as Chief Financial Officer (CFO). Dr. Magnus Ekerot has been appointed as the new Chief Sales Officer (CSO). Long-time assistant to the Chairman of the Management Board and Director of Advanced Technology Development, Dr. Oliver Gabel has been appointed as the new Chief Technology Officer (CTO), and is responsible for the Production & Development divisions.
or sales of shares were effected by members of the Management Board or Supervisory Board.
In addition to the changes in the Board of Management described in chapter 5, no events of any significance occurred after the end of the first six months 2010/11.
During the period under review, no changes of any significance occurred with regard to transactions with related parties in compared to fiscal year 2009/10.
During the period from July 1, 2010 to Dezember 31, 2010, the following purchases
| Name | Function | Date of transaction |
Type of transaction |
Stock exchange |
Number of shares |
€ Price | € Total volume |
|---|---|---|---|---|---|---|---|
| Lutz Coelen | CFO | Dec 22, 2010 | Purchase | Xetra | 200 | 54.88 | 10,975 |
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.
The HiRes Video Company
For information concerning individual material risks, please refer to the statements made in the 2009/10 annual report.
Risks resulting from the procurement market are estimated by the Management Board as being within the customary range for the industry. The strained situation observed on the procurement market in the past several months continues, and the associated longer delivery times are still being taken into account through increased inventory control of components and finished goods.
During the past twelve months a noticeable recovery has been recognized in the macroeconomic environment following the financial crisis. The extent to which short- to mediumterm setbacks should be expected due to the crisis (e.g. provoked by state bankruptcies), or whether a lasting recovery of the global markets will continue, still cannot be evaluated conclusively.
During the period under review, the risk situation described in the annual report of MOBOTIX AG for the 2009/10 fiscal year, as well as our risk management system of MOBOTIX AG, have not changed significantly. The occurrence of risks that could jeopardize the Company's continued existence is not anticipated.
The positive market environment with its continued forecasts of high growth rates will form the basis for the Company's successful development. Market growth will be driven by the transition from analog to digital technology. If this change should happen sooner than expected, additional opportunities could be presented for the MOBOTIX Group. 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.
An accelerated macroeconomic recovery from experience, of course, can also lead to supplyside 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
MOBOTIX AG new headquarter
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.
Regional areas of key growth in the upcoming months include particularly North America, South America and Asia.
The market introduction of the hemispheric camera has been so far very successful. The fact that the Company's main competitors cannot offer any comparable products shows MOBOTIX AG's innovative strength and enables the company to occupy a unique position in this product segment over the medium term. Moreover, MOBOTIX plans to take advantage of additional product innovations in the coming months to reinforce its competitive position and create a foundation for developing new market segments.
During the third quarter of the new fiscal year, MOBOTIX will introduce the new T24 IP Video Door Station. The entry into a new product segment (access-control and communication) makes a predication for the whole of fiscal year 2010/11 difficult. Overall, the Management Board anticipates furthermore sales growth of 30% for the 2010/11 fiscal year, of which approximately 23% of the growth will apply to the video surveillance segment. In terms of profitability, an EBIT margin of 22% is viewed as realistic. Due to the high level of interest in the new product segment, the Management Board anticipates continued high growth in sales and EBIT for the following year.
Winnweiler-Langmeil, January 21, 2011
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
| 6 Months | 2nd Quarter | ||||
|---|---|---|---|---|---|
| EUR '000s | see notes | July 1, 2010- Dec. 31, 2010 |
July 1, 2009- Dec. 31, 2009 |
Oct. 1, 2010- Dec. 31, 2010 |
Oct. 1, 2009- Dec. 31, 2009 |
| Revenue | (1) | 34,623 | 23,908 | 19,559 | 13,310 |
| Increase/Decrease in finished goods and work in progress | 1,075 | 58 | -11 | -592 | |
| Other own work capitalized | (2) | 611 | 306 | 361 | 131 |
| Total output | 36,309 | 24,272 | 19,909 | 12,850 | |
| Cost of materials | (3) | -9,354 | -6,147 | -4,554 | -2,965 |
| Gross profit | 26,955 | 18,125 | 15,355 | 9,885 | |
| Staff costs | (4) | -9,119 | -6,723 | -5,234 | -3,600 |
| Depreciation and amortization | -1,392 | -911 | -733 | -468 | |
| Other operating income | 261 | 139 | 88 | 47 | |
| Other operating expenses | (5) | -7,661 | -5,894 | -4,599 | -3,183 |
| Operating profit | 9,044 | 4,736 | 4,877 | 2,681 | |
| Other interest and similar income | 34 | 57 | 16 | 21 | |
| Interest expense and similar charges | -282 | -261 | -149 | -129 | |
| Profit before tax | 8,796 | 4,533 | 4,744 | 2,573 | |
| Income taxes | (6) | -2,555 | -1,356 | -1,413 | -763 |
| Profit for the period | 6,241 | 3,176 | 3,331 | 1,810 | |
| Profit attributable to shareholders of MOBOTIX AG | 6,241 | 3,176 | 3,331 | 1,810 | |
| Earnings per share (diluted/basic) | 1.42 | 0.72 | 0.76 | 0.41 |
| Consolidated Statement of Comprehensive Income (Loss) | July 1, 2010- Dec. 31, 2010 |
July 1, 2009- Dec. 31, 2009 |
Oct. 1, 2010- Dec. 31, 2010 |
Oct. 1, 2009- Dec. 31, 2009 |
|---|---|---|---|---|
| Profit for the period | 6,241 | 3,176 | 3,331 | 1,810 |
| Difference resulting from currency translation | -26 | -2 | 10 | -3 |
| Accumulated other comprehensive income (after tax) | -26 | -2 | 10 | -3 |
| Total comprehensive income of the period | 6,215 | 3,174 | 3,341 | 1,807 |
| Profit attributable to shareholders of MOBOTIX AG | 6,215 | 3,174 | 3,341 | 1,807 |
| EUR '000s | see notes | Dec. 31, 2010 | June 30, 2010 |
|---|---|---|---|
| Intangible assets | (7) | 1,992 | 1,727 |
| Property, plant and equipment | (8) | 19,318 | 17,650 |
| Deferred tax assets | 192 | 123 | |
| Prepaid expenses | 88 | 97 | |
| Non-current assets | 21,590 | 19,598 | |
| Inventories | (9) | 11,361 | 7,579 |
| Trade receivables | 6,395 | 6,542 | |
| Other assets | 5,485 | 5,526 | |
| Cash and cash equivalents | 5,812 | 7,312 | |
| Prepaid expenses | 430 | 379 | |
| Current assets | 29,483 | 27,339 | |
| ASSETS | 51,073 | 46,936 | |
| Subscribed capital | 4,424 | 4,424 | |
| Capital reserves | 9,665 | 9,665 | |
| Purchase of own shares | -778 | 0 | |
| Accumulated other comprehensive income | 50 | 76 | |
| Profit or loss carried forward | 10,694 | 6,757 | |
| Profit for the period | 6,241 | 8,361 | |
| Equity | (10) | 30,296 | 29,283 |
| Liabilities to banks | (13) | 8,386 | 5,906 |
| Deferred tax liabilities | 696 | 591 | |
| Non-current liabilities | 9,082 | 6,497 | |
| Tax provisions | (11) | 4,721 | 3,005 |
| Other provisions | (12) | 187 | 176 |
| Liabilities to banks | (13) | 964 | 2,614 |
| Trade payables | 3,499 | 3,245 | |
| Other liabilities | (14) | 2,324 | 2,115 |
| Current liabilities | 11,695 | 11,156 | |
| EQUITY AND LIABILITIES | 51,073 | 46,936 |
| EUR '000s | July 1, 2010- Dec. 31, 2010 |
July 1, 2009- Dec. 31, 2009 |
|
|---|---|---|---|
| Profit before tax for the period | 8,796 | 4,533 | |
| + | Net interest income or expense | 248 | 204 |
| + | Depreciation and amortization of property, plant and equipment, and intangible assets |
1,392 | 911 |
| + | Interest received | 34 | 57 |
| + | Increase in other provisons | 11 | 5 |
| + | Other non-cash expenses | 9 | 8 |
| Operating profit before changes in working capital | 10,490 | 5,718 | |
| -/+ Increase/Decrease in inventories, trade receivables and other assets not attributable to investing or financing activities |
-3,973 | 134 | |
| +/- Increase/Decrease trade payables and other liabilities not attributable to investing or financing activities |
462 | -208 | |
| Cash flow from operating activities before tax | 6,978 | 5,644 | |
| - | Income tax paid | -802 | -1,525 |
| Cash flow from operating activities | 6,176 | 4,119 | |
| - | Cash paid for purchases of property, plant and equipment | -3,252 | -1,680 |
| - | Cash paid for purchases of intangible assets | -649 | -323 |
| + | Cash received from subsidies | 244 | 33 |
| + | Proceeds from sales of current available-for-sale financial assets | 476 | 0 |
| Cash flow from investing activities | -3,181 | -1,970 | |
| - | Dividends paid | -4,424 | -4,424 |
| - | Purchase of own shares | -778 | 0 |
| - | Cash paid for the redemption of loans | -2,445 | -307 |
| + | Cash received from borrowings | 3,360 | 0 |
| - | Interest paid | -202 | -191 |
| Cash flow from financing activities | -4,489 | -4,922 | |
| Net change in cash and cash equivalents | -1,494 | -2,774 | |
| Effect of exchange rate and other changes on cash and cash equivalents | -6 | -1 | |
| Cash and cash equivalents at the beginning of the reporting period | 7,312 | 10,142 | |
| Cash and cash equivalents at the end of the reporting period | 5,812 | 7,368 |
| EUR '000s | Subscribed capital |
Capital reserves |
Own shares |
Accumulated other comprehensive income |
Profit or loss carried forward |
Result for the period |
Total |
|---|---|---|---|---|---|---|---|
| Balance as of July 1, 2009 | 4,424 | 9,665 | 0 | 37 | 11,180 | 0 | 25,306 |
| Dividend payment | -4,424 | -4,424 | |||||
| Currency translation | -2 | -2 | |||||
| Profit for the period | 3,176 | 3,176 | |||||
| Balance as of Dec. 31, 2009 | 4,424 | 9,665 | 0 | 35 | 6,756 | 3,176 | 24,056 |
| Currency translation | 41 | 41 | |||||
| Profit for the year | 5,185 | 5,185 | |||||
| Balance as of June 30, 2010 | 4,424 | 9,665 | 0 | 76 | 6,756 | 8,361 | 29,283 |
| Balance as of July 1, 2010 | 4,424 | 9,665 | 0 | 76 | 15,118 | 0 | 29,283 |
| Dividend payment | -4,424 | -4,424 | |||||
| Purchase of own shares | -778 | -778 | |||||
| Currency translation | -26 | -26 | |||||
| Profit for the period | 6,241 | 6,241 | |||||
| Balance as of Dec. 31, 2010 | 4,424 | 9,665 | -778 | 50 | 10,694 | 6,241 | 30,296 |
For a more detailed explanation concerning changes in equity, please refer to section (10) of the Notes to the Condensed Consolidated Financial Statements.
37
Equity € 30.3m Equity-To-Assets Ratio 59.3%
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.
The Company's fiscal year begins on July 1 and ends on June 30 of the following year.
Pursuant to the resolution of the annual general meeting of MOBOTIX AG on October 28, 2010 the fiscal year of MOBOTIX AG will be amended and repealed with effect from October 1, 2011 and starts from this time onwards each October 1 and ends on September 30 of the following year. The fiscal year, which starts July 1, 2011 is a short fiscal year and ends September 30, 2011.
The condensed interim consolidated financial statements of MOBOTIX AG as of December 31, 2010 have been prepared taking into account all International Financial Reporting Standards (IFRS), International Accounting Standards (IAS) and Interpretations of the International Financial Reporting Interpretation Committee or Standing Interpretations Committee (IFRIC/SIC) recognized by the European Union and valid for the fiscal year 2010/11.
In the condensed interim consolidated financial statements as of December 31, 2010, which have been prepared based on IAS 34 "Interim Financial Reporting", the same basic accounting and valuation principles were used as in the consolidated financial statements for the fiscal year 2009/10.
During the first half of 2010/11, MOBOTIX AG acquired treasury shares for the first time commensurate with the authorization of the annual general meeting held on September 30, 2009. In accordance with IAS 32.33, these treasury shares are to be deducted from equity.
The condensed interim consolidated financial statements were subject to an audit review
conducted by KPMG AG, Wirtschaftsprüfungsgesellschaft. Furthermore, this interim report is consistent with German Accounting Standard No. 16 (DRS 16) "Interim reporting", as published by the German Accounting Standards Committee (DRSC).
For additional information concerning the accounting and valuation principles applied to individual items, please refer to the Consolidated Financial Statements of MOBOTIX AG as of June 30, 2010.
Unless otherwise indicated, all information provided in the Abbreviated Interim Consolidated Financial Statements is presented in thousands of Euro (EUR '000s). Rounding differences of one unit (EUR '000s, %) may result from the conversion from EUR to EUR '000s.
The scope of consolidation of MOBOTIX AG as of December 31, 2010 has neither changed in comparison to the Consolidated Financial Statements as of June 30, 2010, nor in comparison to the same period of the previous year. In the Consolidated Financial Statements of MOBOTIX AG, MOBOTIX CORP has been consolidated retroactively to the time it was established in 2003. Due to its no longer significant influence, MOBOTIX AG Schweiz has not been consolidated in the course of at-equity accounting since December 31, 2009.
A breakdown of revenue by region and product line is presented as part of the segment information.
Other own work capitalized in the first six months of 2010/11 comprises development costs capitalized in the amount of €611 thousand (previous year: €299 thousand).
| EUR '000s | July 1, 10- Dec. 31, 10 |
July 1, 09- Dec. 31, 09 |
|---|---|---|
| Cost of raw materials, supply and merchandise |
9,286 | 6,040 |
| Cost of purchased services |
68 | 107 |
| Total | 9,354 | 6,147 |
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 | July 1, 10- Dec. 31, 10 |
July 1, 09- Dec. 31, 09 |
|---|---|---|
| Wages and salaries | 8,013 | 5,866 |
| Social security | 1,106 | 857 |
| Total | 9,119 | 6,723 |
The reason for the increased staff costs is primarily due to the increases in the number of staff. During the first six months of 2010/11, the average headcount in full-time equivalents totaled 236 (previous year: 203) employees (excluding trainees and temporary staff, and including 2 (previous year: 2) directors). As of the reporting date, 251 (previous year: 218) staff members were employed by the Company (excluding trainees and temporary staff, and including 2 (previous year: 2) directors – in terms of headcount).
Other operating expenses comprise all expenses that cannot be attributed to other items. In particular, the item comprises marketing expenses, trade fair expenses, expenses for packaging and shipping, legal and advisory costs, as well as occupancy costs and office equipment.
The increase in comparison to the same period during the previous fiscal year of €1,767 thousand or 30.0% to €7,661 thousand can mainly be attributed to higher distribution costs (transportation, packaging and travel costs), as well as to higher operating expenses due to an increase in business volume.
Income taxes can be broken down as follows:
| EUR '000s | July 1, 10- Dec. 31, 10 |
July 1, 09- Dec. 31, 09 |
|---|---|---|
| Current taxes | 2,519 | 1,292 |
| Deferred taxes | 36 | 64 |
| Total | 2,555 | 1,356 |
As of December 31, 2010, the tax load ratio amounts to 29.1% (previous year: 29.9%).
During the first six months of 2010/11, development costs for camera housings, electronics and software projects were capitalized at cost in the amount of €611 thousand (previous year: €299 thousand). The development costs capitalized as of December 31, 2010 of €2,662 thousand (June 30, 2010: €2,051 thousand) comprise all costs directly attributable to the development process. Cumulative amortization and depreciation as of December 31, 2010 amount
to €768 thousand (June 30, 2010: €437 thousand). After completion, development projects are written down uniformly on a straight-line basis over three years.
Additions to property, plant and equipment primarily concern the construction of new production facilities at the Company's location in Langmeil. Due to the reduced construction time, they do not equate to a "qualifying" asset according to IAS 23. Correspondingly, the associated financing costs have not been capitalized.
The Ministry of Economy, Transport, Agriculture and Viniculture for the German State of Rhineland-Palatinate allotted MOBOTIX AG an investment grant of €1,067 thousand in accordance with an approval letter dated August 31, 2010. Commensurate with the progress of construction, a deferred asset from subsidies was capitalized as of December 31, 2010 in the amount of €410 thousand for outstanding subsidies for the new construction of the production facilities. The subsidies were deducted from fixed assets in accordance with IAS 20.27.
Inventories are composed of the following:
| EUR '000s | Dec. 31, 10 | June 30, 10 |
|---|---|---|
| Raw materials and supplies |
6,670 | 3,964 |
| Work in progress | 2,374 | 1,405 |
| Finished goods | 2,317 | 2,210 |
| Total | 11,361 | 7,579 |
The increase in inventories is due to the introduction of new products, the increase in business volume and the targeted stocking of the Company's warehouse in connection with the procurement market being narrow for several months, particularly for electronic components.
The development of equity is presented in the statement of changes in equity.
During the period under review, the weighted number of shares outstanding amounted to 4,410,012 (previous year: 4,423,814).
By resolution of the annual general meeting held on September 30, 2009, the Management Board is authorized to acquire treasury shares of the Company until September 30, 2014. The shares to be acquired based on this authorization combined with the 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 442,381 shares.
On July 15, 2010, the Management Board of MOBOTIX AG decided to make use of the authorization of the annual general meeting of September 30, 2009 to acquire treasury shares in accordance with section 71 (1) (8) of the German Stock Corporation Act (AktG) to an extent of up to 15,000 shares. The buy-back program was started on July 19, 2010.
Furthermore, the Management Board of MOBOTIX AG decided on October 5, 2010 to change the conditions of the ongoing buy-back program in such a way so that up to 50,000 shares can be acquired.
As of December 31, 2010, the Company has already acquired 23,349 shares. These treasury shares deducted from equity are accounted at acquisition costs.
The tax provisions as of December 31, 2010 of €4,721 thousand (June 30, 2010: €3,005 thousand) include provisions for trade tax, corporation tax and the solidarity surcharge for the tax assessment periods 2009, 2010 and 2011.
The other provisions primarily include provisions for warranties and client bonuses.
In order to finance its new production facilities at its Langmeil site, MOBOTIX AG took out two loans for a total of €3,500 thousand during the first six months of the 2010/11 fiscal year. The loans have a term of 10 years and are stateaided. In order to calculate the fair value of the loans, they have been discounted by 3.7% and 4.0%. The promotional contributions included in the loans in the amount of €165 thousand have been offset against property, plant and equipment.
During the first six months of the 2010/11 fiscal year, loans in the amount of €2,445 thousand were paid off as scheduled.
The other liabilities have a remaining life of less than one year. They primarily include liabilities from the personnel department.
There were no significant changes to transactions with related parties during the period
under review in comparison to the 2009/10 fiscal year.
Segment Information For The Six-Month Period From July 1, 2010 To December 31, 2010 Within the MOBOTIX AG no definable business segments exist whose operating results are routinely reviewed by the Management Board with respect to decisions regarding allocation of resources to those business segments, or the measurement of their profitability. Due to the internal structures and size of the corporation, management and allocation of resources for the MOBOTIX Group is conducted based on sales revenues – primarily by geographic regions, followed then by product lines. Profitability ratios – particularly earnings statements, are prepared only on the level of the entire corporation. 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 | July 1, 10- Dec. 31, 10 |
July 1, 09- Dec. 31, 09 |
|---|---|---|
| Fixed Cams | 16,044 | 12,340 |
| Dome Cams | 16,873 | 10,208 |
| Other | 1,706 | 1,360 |
| Total | 34,623 | 23,908 |
Revenue by region is broken down as follows:
| EUR' 000s | July 1, 10- Dec. 31, 10 |
July 1, 09- Dec. 31, 09 |
|---|---|---|
| Germany | 8,880 | 7,723 |
| Rest of Europe | 14,023 | 10,193 |
| Rest of World | 11,720 | 5,992 |
| Total | 34,623 | 23,908 |
The Company's product lines have not changed significantly in comparison to June 30, 2010.
No single customer generates more than 10% of the MOBOTIX Group's revenue.
Winnweiler-Langmeil, January 21, 2011
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 21, 2011
The Management Board
Lutz Coelen • CFO MOBOTIX AG Dr. Oliver Gabel • CTO MOBOTIX AG
Dr. Ralf Hinkel • CEO MOBOTIX AG Dr. Magnus Ekerot • CSO 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 July 1 to 31 December 2010 that are part of the six months financial report according to § 37w 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.
The HiRes Video Company
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 21, 2011
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).
| Roadshow | February 28, 2011 |
|---|---|
| 9 Months Report 2010/11 | May 16, 2011 |
| European Small Mid Cap Conference, Bank of America Merrill Lynch | June 2011 |
| Annual General Meeting Business Year 2010/11 | Oktober 2011 |
| Annual General Meeting Shortened Business Year 1. 7. 2011 - 30. 9. 2011 | February 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] |
Investor Relations Manager Phone: +49 6302 9816-111 Fax: +49 6302 9816-190 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
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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