Quarterly Report • Nov 11, 2009
Quarterly Report
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Dear Shareholders,
MOBOTIX AG continued its successful revenue growth in the fi rst quarter of the current 2009/10 fi scal year. As a result, we even exceeded by 2.8% the earnings of the strong fi rst quarter of the previous fi scal year, which had not yet been infl uenced by the fi nancial crisis.
The increased sales of the dome cameras and the export business with a 63.3% share of revenues were the greatest contributors to growth. The favorable conditions presented by the comparatively weak market environment translated into additional market shares for MOBOTIX.
There is no doubt that we are also experiencing the eff ects of the fi nancial and economic crisis, which has impacted our growth, particularly with regard to the large projects of the last three quarters. In addition, seasonal fl uctuations had a strong impact on revenues in the summer months of July to September, especially on export revenues that had been exceptionally high in the same quarter of the previous year. Considering this, we can be more than satisfi ed with the extraordinary profi tability showing an EBIT margin of 18.0% and an EBITDA margin of 21.9%.
For the current fi scal year, we have signifi cantly extended our competitive advantage by converting to the new P3 processor technology, and by launching the hemispheric camera technologies including the revised MxCC 2.0 video management software. In addition, new products to round out our product portfolio of comprehensive alarm and video security systems will be developed and brought to market.
Our own development of Mx2wire technology will open up new distribution channels. This is an important step in the direction of a larger range of customers which will be intensifi ed by the fi rst version of the MxEasy video management software for the semiprofessional segment.
In the future, the new technologies will be combined in our video IP door station which will see its market launch in the current fi scal year.
Based on these developments, we are confi dent that we will generate new markets, expand our share in existing markets and generate profi table and sustained growth.
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 Troughout 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 | 23 |
| Research And Development | 26 |
| Employees | 27 |
| Changes In The Supervisory Board And The Board Of Management | 27 |
| Director's Dealings | 27 |
| Significant Events After The Balance Sheet Date | 27 |
| Opportunities And Risks Of Future Development And Outlook | 28 |
| Interim Consolidated Financial Statements | 32 |
| Consolidated Income Statement, Consolidated Statement Of Comprehensive Income (Loss) | 32 |
| Consolidated Statement Of Financial Position | 33 |
| Consolidated Statement Of Cashflows | 34 |
| Consolidated Statement Of Changes In Equity | 35 |
| Notes To The Consolidated Financial Statements | 36 |
| Responsibility Statement | 45 |
| Independent Auditors' Review Report | 46 |
| Further Information | 48 |
| 3 months (July 1 to September 30, 2009) | 2009/10 | 2008/09 | Delta % |
|---|---|---|---|
| Financial performance | EUR '000s | EUR '000s | |
| Total Output | 11,442 | 10,547 | +8.3 |
| Revenue | 10,599 | 10,306 | +2.8 |
| Thereof outside of Germany (in %) | 63.3 | 62.3 | |
| EBITDA | 2,499 | 2,747 | -9.0 |
| EBITDA as a percentage of total output | 21.9 | 26.0 | |
| EBIT | 2,056 | 2,467 | -16.7 |
| EBIT as a percentage of total output | 18.0 | 23.4 | |
| Profit before tax | 1,960 | 2,479 | -20.9 |
| Return on revenue in % before tax | 18.5 | 24.1 | |
| Profit for the period after tax | 1,367 | 1,759 | -22.3 |
| Cash flow from operating activities | 3,320 | 2,589 | +28.2 |
| Financial position | Sept. 30, 2009 June 30, 2009 | ||
| Equity | 22,250 | 25,306 | -12.1 |
| Equity-to-assets ratio in % | 55.3 | 61.1 | |
| Total assets | 40,269 | 41,402 | -2.7 |
| Non-current assets | 18,050 | 17,369 | +3.9 |
| Current assets | 22,219 | 24,034 | -7.6 |
| Thereof cash and cash equivalents | 8,860 | 10,142 | -12.6 |
| Employees | |||
| Number of employees (as of balance sheet date) | 213 | 204 | +4.4 |
| Revenue per employee | 57(2) | 59(3) | |
| EBIT per employee | 10(2) | 14(3) | |
| Key figures per share (in €) (1) | |||
| Earnings per share (EPS) | 0.31 | 0.40 | -22.5 |
| Cash flow as per DVFA/SG | 0.42 | 0.47 | -10.6 |
1) Based on an average of 4.424m shares
2) Based on an average of 187 employees.
3) Based on an average of 175 employees
Total Output € 11.4m (+8.3%)
MOBOTIX AG is a publicly traded company that develops and produces network-based video security systems. Whether in private homes, in the industry sector, embassies, airports, train stations, gas stations or on highways – over hundred thousand MOBOTIX video systems have been in operation on every continent for years. In addition to the actual IP video cameras in megapixel resolution, MOBOTIX AG also develops the interface components and the video management systems for operating complete security systems. This system concept, the software-oriented solution as well as the decentralized concept clearly distinguish MOBOTIX from its competitors, protect the product know-how and make high-resolution and hemispheric systems cost-efficient for the first time ever. With currently more than 200 employees and an export share of nearly 70% (2008/09), MOBOTIX achieves a world market share of 9%.
MOBOTIX' decentralized concept makes it possible that the integrated software takes over the essential tasks of a video security system (e.g. event detection or pre-processing and storage of relevant video sequences) rather than a central PC. In addition, since 2004 MOBOTIX has been focusing on megapixel cameras, which, thanks to their sharpness in detail, are far superior to the conventional video cameras still in use today. This makes it possible for example, to recognize all license plates in four lanes of a gas station simultaneously using only one camera. No PC is necessary on-site for the recording since it would only be used for viewing and research, so the PC can therefore be connected via a computer network or the Internet from anywhere in the world.
The hemispheric camera technology developed by MOBOTIX makes it possible to record an entire room from the ceiling or a wall with a single camera independent of the live image area selected, so that other areas of the room can be viewed later when doing research. Excerpts of the hemispherical live image similar to a fisheye are digitally reformed already in the camera so that it appears to the user that a panning camera is being used.
As a result of this powerful innovative force, nearly all significant innovations in the IP camera sector in the last 10 years were initially introduced to the market by MOBOTIX. For that reason, MOBOTIX is the technology leader of the industry and since being established in 1999 has rapidly been able to gain market share worldwide with growth rates of 50%.
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.
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 high-resolution video systems cost effi cient. Whether in embassies, airports, railway stations, ports, gas stations, hotels or on highways - over hundred thousand MOBOTIX video systems have been in operation on every continent for years.
In a short time, MOBOTIX has gained the second place in Europe and the fourth place worldwide in terms of market share. MOBOTIX has been producing solely megapixel cameras for years and, in this area, ranks as global market leader in high-resolution video systems with a market share of over 60%.
The higher the resolution, the more accurate the detail in the image. With the old analog
technology, a live image has no more than 0.4 megapixels and a recorded image generally 0.1 megapixels (CIF). One MOBOTIX camera with 3.1 megapixels, on the contrary, 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 needed 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 video management software. This traditional centralized structure has many limitations, since it requires a high network bandwidth and the PC processing power is not enough for several cameras. An HDTV MPEG4 fi lm already puts considerable strain on a PC, how can it be expected to process dozens of high-resolution live cameras? Traditional centralized systems are therefore less suitable and unprofi table than high-resolution systems due to the high number of PCs needed.
MOBOTIX has redefi ned video. Whether on the Internet, in traffi c 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 with other systems, with the decentralized MOBOTIX concept a high-speed computer and, if requested, digital memory (SD card) is built into every camera for long-term recording. The PC now serves purely for viewing, not for analysis or recording. As a result, MOBOTIX cameras can record in response to an event even without the PC being switched on and digitally store the videos with sound in the long term.
MOBOTIX video solutions therefore require significantly:
itself and the high-resolution images therefore do not have to be constantly transported for analysis.
MOBOTIX cameras have no mechanical motors for lenses or for movement. Without any moving parts, they are therefore so robust that maintenance is reduced to a minimum. The unique temperature range from -30°C to +60°C (-22°F to +140°F) is achieved without heating or 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.
There are no software and licensing costs with MOBOTIX, because the software is always supplied with the camera; for an unlimited number of cameras and users. The software package supplied with the camera also includes professional control room software, like that used in football stadiums for example. Updates are supplied free of charge on the website. The system price for a weatherproof camera including lens, query software and day-to-day recording on the MicroSD card is under € 1.000.
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.
MOBOTIX network cameras secured the Holland Heineken House (HHH) in Beijing during the Summer Olympic Games 2008. The HHH is a joint project of Heineken and the Dutch sports organization NOC*NSF.
This special-built facility in the Olympic park attracted more than 3,000 visitors a day from around the world with food and drinks, a stage, shops and entertainment. The designated security firm Proseco chose a video surveillance system consisting of about 25 MOBOTIX HiRes cameras with 3.1 megapixel resolution. "Extensive tests confirmed that the MOBOTIX cameras were best suited for our requirements," said Proseco's Job Groenendijk. "The most important criteria included the high image quality, integrated sensors and extensive functionality." ROCK & ROLL HALL OF FAME, New York City MOBOTIX
an annex in New York's Soho art district to supplement its legendary headquarters in Cleveland, Ohio. The extremely valuable and irreplaceable display items require an exceptionally reliable security system. A total of 50 MOBOTIX HiRes cameras, including several hemispheric cameras, form a CCTV solution that has thrilled the people in charge. They had never before experienced a turnkey system that is so easy to install and so cost-effective while offering extremely detailed and realistic images – even under the most challenging lighting conditions.
Bernt Lüchtenborg from Brake an der Weser, Germany, is making sailing history. He is sailing alone around the world twice from 2009 to 2010, without ever setting foot on land. On MOBOTIX Cameras Protect Rock'n Roll Hall Of C A S E S T U D Y
Airbus S.A.S., Schenker GmbH, Daimler AG, Deutsche Bahn Station & Service AG, EON Wasserkraft, Le Méridien Parkhotel Frankfurt, MAN Logistics, Lübecker Hafen-Gesellschaft mbH, Max Planck Institute for Chemical Ecology, Commerzbank AG, Skoda Auto Deutschland GmbH, Fraport AG, etc. led with the personal mementos The Rolling Stones, Madonna and Bruce Springsteen. From guitar heroes like Jimi Hendrix to song reless technology to transmit audio content as they journey section is a gallery of high definition screens, mapping the roots and influences of today's most popular musicians, followed by "Moments to Movements", which isolates five critical
his adventurous journey, Lüchtenborg will collect oceanographic data that has never before been available.
MOBOTIX is supporting the project with an ExtIO and 3 cameras. They are equipped with a 16 GB SD card and store their images internally. Every 2 or 3 days the images are transferred to a portable USB hard drive. The images can also be transferred via satellite phone. The project is doubly valuable for MOBOTIX: It provides a spectacular entry to the maritime sector and is the ultimate proof of the camera's robustness.
Bergen County Jail is a central detention and correctional facility featuring maximum security. Today, 90 MOBOTIX cameras of all ranges protect the courthouse, the sheriff's office and every square inch of the prison to ensure the safety of visitors and staff. "We have to be careful with taxpayers' money," says Sheriff Leo McGuire. "This is why our priority was to purchase a system that is capable of fulfilling all of our requirements at the lowest possible cost." After extensive research, Bergen County was certain that the extremely robust and high resolution cameras, made in Germany, represented the ideal solution.
For the first time in Baden-Württemberg, traffic cameras were recently installed along the A8 and A81 autobahns. The live images are made available to the public at www.verkehrskameras.svz-bw.de. The traffic authorities chose MOBOTIX cameras for their robustness, weather resistance and image quality. The system will be expanded from 14 MOBOTIX cameras in the first phase to approximately 100 cameras in 60 locations.
Abu Dhabi Airport (United Arab Emirates), EURO 2012 Soccer Stadium (Ukraine), Republic Polytechnic (Singapore), Vatican Apostolic Library (Vatican City), Orange Mobile (Romania), Hudson River Park (New York), Bahrain Defense Hospital (Bahrain), Italian Financial Services Authority (Milano), etc.
The primary components of the hemispheric camera include a fi sheye lens, a high-resolution image sensor and image correction software that is integrated into the camera. Using an ultra-wide angle fi sheye lens, the camera captures a 180° hemispheric image of the room and projects it onto a high-resolution image sensor.
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 soft-
ware, 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
diff erent 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 specifi c object. MOBOTIX hemi-
spheric cameras are without mechanical moving parts and require low maintenance. In addition, they are silent when panning and focusing on a specifi c image area.
MOBOTIX ranks as the global market leader in high-resolution video systems with a market share of over 60%. 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 off ers 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 fi sheye eff ect, which is typical for this lens, can be digitally compensated in the live image.
When it comes to future-proof video surveillance systems, it is not a matter of analog or digital but whether it is high-resolution or not. It is important to note that HiRes video only with decentralized network camera technology can be implemented at much lower cost than any other type of video surveillance system.
These days, video data is normally preprocessed and stored centrally on a PC with video management software or on a DVR. Video and audio streams from all installed cameras are directed to this central device. This system is comparable to a highway at rush hour: the more cameras there are, the faster a data jam on the PC or DVR occurs. This means that despite HiRes cameras, the data is generally not stored in high-resolution format.
MOBOTIX solves the PC storage bottleneck problem using a unique and yet amazingly eff ective method - through the camera itself. High-resolution video with lip-synchronized sound is saved either remotely over the network or locally on fl ash memory devices (commercial MicroSD, SD or CF cards, USB memory).
Every single MOBOTIX camera can be confi gured 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.
Flash memory is a sophisticated form of semiconductor memory without mechanical moving parts and represents the storage medium of the future thanks to its reliability, ease of use and low cost.
MOBOTIX' own flash file system (MxFFS) prevents unauthorized persons from reading or transferring the internally stored data, even if the card is stolen.
The MOBOTIX system includes three important additional options that allow more data to be stored for a longer time:
By connecting external memory over the network (NAS), the system can be expanded without limitations even while it is running.
Long-term recording directly in the camera; the 32 GB provide space for about 180,000 single images (4 days at 30 frames/min.) or 2000 one-minute video clips with sound. Old recordings can be overwritten automatically or deleted after a user-defined time.
USB MOBOTIX
MOBOTIX AG shares have been listed on the stock exchange since October 10, 2007 and on the Prime Standard segment of "Deutsche Börse AG" since March 31, 2008.
During the second quarter 2009, the stock markets managed to recover the losses incurred in the first quarter, reflecting hopes of a quick revival of the global economy. The German stock index, the DAX, closed at 5,675.16 points on September 2009. The index was therefore 38.9 % above its closing level at the end of the first quarter and thus also back to its level at the end of 2008.
The MOBOTIX share has proven to be an extremely lucrative investment since the IPO in October 2007. Measured by the performance of the issuing price, it has been one of the most successful IPO's in the last two years to provide one of the highest increases in share value for the initial investors. An initial investor achieved an increase in value of 91.0% (including the 2008/09 dividend). In contrast, all of the relevant indices posted considerable losses during the same period. The DAX, for example, lost almost 29% of its value while the technologyoriented TecDAX lost 24.7% during this period. The German Entrepreneurial Index (GEX), on which the MOBOTIX share has been listed since June 23, 2008, also showed significantly poorer performance since MOBOTIX AG's IPO and lost 38.2%. The GEX tracks owner-managed German companies within the Prime Standard segment of the Frankfurt Stock Exchange that may have been 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 shares. Despite the global mood of crisis, the MOBOTIX share outperformed all of the relevant German stock indices in the first quarter of fiscal year 2009/10. The MOBOTIX share reached its high on September 18, 2009 at €29.75, while the low was reached on July 6/7, 2009 at €21.40. The closing price on the reporting date of September 30, 2009 was €28.61. Accordingly the MOBOTIX share won 34.6% of its value (including dividend) in the period under review.
| MOBOTIX share | +91.0% | +34.6% |
|---|---|---|
| DAX | -28.9% | +18.0% |
| TecDAX | -24.7% | +20.9% |
| GEX | -38.2% | +15.4% |
MOBOTIX AG pursues a growth-oriented dividend policy that corresponds to corporate growth and the respective business situation. For fiscal year 2008/09, the Company distributed a dividend of €1.00 per share (previous year €0.50).
At the end of the first quarter of fiscal year 2009/10, 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 founder and CEO of the Company, Dr. Ralf Hinkel, continues to hold 50.14% of the shares. Andreas Putsch holds 9.91% and Klaus Borchers 6.42%. The free float as defined by the "Deutsche Börse AG" is 33.53%.
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".
Also in the current fiscal year 2009/10, MOBOTIX AG will present itself to interested analysts and investors at e.g. the German Equity Forum of the "Deutsche Börse AG" in November 2009 in Frankfurt.
On September 30, 2009, MOBOTIX' annual general meeting was held at the company's headquarter. With approximately 139 shareholders, 81.19 % of the authorized capital was represented. The constructive and interesting questions as well as the very high agreement of over 99.74% for all proposals on the agenda clearly reflected the shareholders confidence
In fi scal year 2008/09, Equinet AG took up coverage of MOBOTIX AG besides DZ Bank, Hauck & Aufhäuser as well as GBC AG. Accordingly, four analysts now observe and evaluate the company continuously.
| High (09/18/2008) | 29.75 EUR |
|---|---|
| Low (06&07/07/2009) | 21.40 EUR |
| Closing price* | 28.61 EUR |
| Market capitalization* | 126.60m EUR |
*as of reporting date of September 30, 2009
| 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 & Aufhäsuer, GBC AG |
MOBOTIX is a European system provider and technology leader of digital, high-resolution, network-based video security systems. At the heart of MOBOTIX technology are proprietary and internally manufactured, fully digital video security systems. The Company was established in 1999 and recorded revenue of €44.9 million in fiscal year 2008/09. One of the most important innovations of MOBOTIX is the decentralized system architecture, where the intelligence is placed into the camera itself by integrating software for image processing, image analysis, event control and recording management, and not in the central control unit, which is typical in traditional video security systems. MOBOTIX is currently the only manufacturer that offers network camera systems with such softwarebased, decentralized system architecture.
The Company's product portfolio includes the product lines M12 (DualNight Camera), M22 (Allround Camera), D12 (DualDome Camera), D24 (MonoDome Camera), V12 (Vandalism Camera), and, since the end of fiscal year 2007/08, the product line Q24 (Hemispheric 360° Camera). The introduction of the first hemispheric camera (360° panorama view) in the last business year 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 central control center software that is able to integrate cameras from other manufacturers as well. And since the launch of MXEasy in the last business year, MOBOTIX has also offered a video management solution for the consumer and semi-professional segment. The MOBOTIX video management solutions are offered
18
free of charge. In addition, various accessories are available in the Company's product mix.
Thanks to the decentralized system architecture, MOBOTIX cameras have a number of advantages over traditional systems.
MOBOTIX Allround M22M
Processing the image within the camera considerably reduces the required computing power of a central PC and saves bandwidth within the network permitting a signifi cantly larger number of recording cameras per PC to be used in video security systems, particularly when high image rates and resolutions are needed. In addition, the fully digital design of MOBOTIX cameras enables them to transmit
images in megapixel quality and also permits event-controlled adjustment of the image rate in response to changes in the image, noises or sound signals. The cameras also have other functions such as dual-camera technology with picture-in-picture and 360° panorama, day/ night switching with exposure adjustment, lip-
MOBOTIX Hemispheric Q24M
synchronized audio transmission, alarm messages via VoIP telephony and soft pan-tiltzoom functionality. Through the total elimination of mechanical moving parts, with wide temperature range and low power usage, MOBOTIX cameras off er a very powerful and failure-resistant video monitoring system at comparatively low cost. Through its unique technological approach, MOBOTIX is the fi rst company to make high-resolution video surveillance cost effi cient.
MOBOTIX manaagement software MxControlCenter
A significant development focus in the last business year was the changeover of the first product line to the new P3 processor technology, doubling the camera's computing power. The changeover from the D22 to the D24 camera line shortly after the end of the fiscal year resulted in delayed revenues due to hesitant customers. The changeover of the processor technology was made in order to use one single circuit board in four different camera models. To achieve this aim, the product had to be adjusted mechanically in a rather complex process, which led to delays in the launch of the new technology. This systematic implementation of the platform strategy will make it possible to gain additional substantial potentials for savings in the years to come. The redesign of the circuit board has also led to adaptations of various camera housings which will be put in production in the next few months.
The MOBOTIX Group consists of MOBOTIX AG, Winnweiler-Langmeil, and MOBOTIX CORP, New York.
In accordance with the resolution passed by the Annual General Meeting on September 30, 2009 MOBOTIX AG's headquarter was relocated from Kaiserslautern to Winnweiler-Langmeil. The company maintains a plant location in Kaiserslautern.
New products are manufactured and developed exclusively at the Kaiserslautern and Langmeil locations. Langmeil controls global sales.
The subsidiary MOBOTIX CORP is exclusively a distribution company for the American market. MOBOTIX CORP, New York, USA, is managed by Mr. Lutz Coelen (CEO and President). The MOBOTIX Group uses a number of operational key indicators to measure the Group's strategic growth and profitability objectives. These include sales figures for the individual segments as well as profitability indicators for the Company as a whole. The Company's performance is monitored and controlled through regular monitoring of trends in the individual sales regions. Other financial figures are also analyzed and evaluated. EBIT and EBITDA are the primary control parameters
20
for the profitability of the MOBOTIX Group. These financial indicators are presented to the Management Board on a monthly basis as part of the internal reporting process, so that any necessary changes can be initiated promptly.
In Germany, the Company's most important market with a 36.7 % share of total sales in the first quarter of fiscal year 2009/10, the products are currently sold via MOBOTIX-certified Secure Partners, specialized IT-retailers or directly, e.g. via the Company's online store, to commercial and private customers. Most of MOBOTIX' international sales are made via distributors and their qualified systems integrators and resellers. The distributors are supported in this process by a number of locally-based Business Development Managers who are employed directly by MOBOTIX AG.
Worldwide, more than 100,000 MOBOTIX cameras are in use. In addition to numerous projects in Germany, MOBOTIX AG also added a number of international reference projects in fiscal year 2008/09. Among others, these include the EURO 2012 stadium of the current UEFA Cup winner in 2009, Schachtjor Donezk, in the Ukraine, The Vatican Apostolic Library in Vatican City, surveillance of Hudson River Park in New York City, the headquarters of the Italian Financial Supervisory Authority in Milan, numerous prestigious banks (including HSBC, ProCredit, Crédit du Maroc etc.) as well as the facilities of ultramodern shopping malls in the Middle East.
In the USA, the Company sells its products through its own sales subsidiary, MOBOTIX CORP. Sales in Switzerland are handled by an associated company (MOBOTIX AG Schweiz). It is planned to attract additional distributors for Switzerland in fiscal year 2009/10. The Company's growth is primarily occuring in the export markets with the export share rising to more than 68% in fiscal year 2008/09.
MOBOTIX operates in the market for video security systems. 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. MOBOTIX' relevant market segment is the market for network cameras.
In a study made by the market research firm IMS Research in September 2009, the authors presume that global sales in the market for network cameras will grow in the mediumand long-term by an annual average of approximately 28 % from 2008 to 2013.
In the short-term, like almost any other industry and service sector, the market environment is characterized by the financial and economic crisis. However, the growth rates, to be expected in the short-term, are comparatively on a higher and positive level compared to other industries. Reliable, sufficient exact short-term forecasts are not possible due to the currently high insecurity.
As in the prior year, MOBOTIX continues to be listed as the world's fourth largest network camera manufacturer, with a market share of 9% in 2008 (source: IMS Research, The World Market for CCTV & Video Surveillance Equipment, 2008 Edition) and was able to further increase its market share. According to IMS, MOBOTIX was in second place in the EMEA region in 2008. The study shows that MOBOTIX has a solid global market share that should increase further in the coming years. Apart from the current worldwide crisis, the sustained favorable market environment and the excellent global market position are a good basis for further successful growth of the Company.
In addition to its important primary product features and unique selling propositions (USPs), MOBOTIX has a further advantage over most of its global competitors. The Company offers not just a camera, but – as one of the very few manufacturers of IP video products – a complete monitoring system, including accessories and its own video management software. MOBOTIX is currently the only manufacturer capable of offerering effective hemispheric video surveillance systems.
MOBOTIX' technology leadership is reflected distinctively in its receiving the Frost & Sullivan "European CCTV and Video Surveillance Product Innovation Award 2008" for outstanding product innovation. The award recognized MOBOTIX for its sophisticated, innovative megapixel cameras, which provide highly detailed resolution to best meet the demands of the security industry. Furthermore, MOBOTIX won the Red-Dot Award 2009 (honorable mention) for the Q24.
The company's development in the first quarter of the current fiscal year is characterized by the effects of the financial and economic crisis perceptible now for three quarters. By evaluting this year's first quarter figures in comparison to previous year's figures, it must be considered, that the previous quarter was not yet influenced by the crisis. This exogenous trend explains the relatively low growth rate of the current quarter. In anticipation of a recovering overall economic environment in the coming months, the MOBOTIX group has invested in the first quarter of the business year in new employees and distribution activities. We expect furthermore a very positive development in revenue and earnings of the MOBOTIX group in the coming months.
In the first quarter of the fiscal year 2009/10, MOBOTIX Group revenue grew by 2.8 % to €10.6 million (prior year: €10.3 million), and pretax earnings decreased by 21.0% to €2.0 million. Total output (sales revenue, increase in finished goods and work in progress, and other own work capitalized) rose by €0.9 million to €11.4 million. EBITDA (21.9% of total output) came to €2.5 million (prior year: €2.7 million). EBIT (18.0% of total output) amounted to €2.1 million (prior year: €2.5 million). Net income for the period (return on sales 12.9%) declined by 22.3% to €1.4 million (prior year: €1.8 million).
A large part of revenue growth continued to be achieved through increased sales of dome cameras, which rose by 15.1% from €3.8 million to €4.4 million. Sales revenues for fixed cameras decreased by 5.4% from €5.9 million to €5.6 million. The Q24 product line launched in June 2009 had a noticeable impact on revenue growth in fiscal year 2009/10. Once again, the export business was a growth driver. The export ratio grew to 63.3% in 2009/10, compared to 62.3% in the prior year. Mainly responsible for this increase was the revenue increase in the rest of Europe (without Germany) from 6.8% to €4.4m (previous year: €4.1m). With €3.9m respectively € 2.3m in Germany and in the rest of the world, revenue at the level of last year could be reached.
The material usage ratio (cost of materials in relation to total operating performance) fell from 30.0% to 27.9%. The gross profit margin increased due to the positive effects of economies of scale.
Due to new hires, staff costs rose by €0.5m, which in turn led to an increase in the
Revenue Rest Of World € 2.3m (+0.3%)
personnel usage ratio (staff costs to total operating performance) from 25.0% to 27.3%. In particular, new staff was hired in the development and sales departments.
Other operating expenses increased by €0.5 million (+24.1%) mainly due to higher costs for marketing and trade fairs/exhibitions.
Interest income increased by €0.1 million due to the falling market interest level.
The subsidiary MOBOTIX CORP reported a revenue increase of approx. 13.2%, leading to net loss for the period of approx. USD 0.1 million. This includes currency translation losses of approx. USD 44.0 thousand.
Development costs of €0.2 million were capitalized in the first quarter of fiscal year 2009/10. Property, plant and equipment grew by €0.6 million (+3.7%) to €16.3 million, with new investments in property, plant and equipment totaling €0.9 million in the period under review. The investments primarily involved construction at the new Langmeil site and investments in technical systems. Investments in technical systems consist largely of investments in injection molding tools and IT equipment.
Inventories grew by €1.1 million, or +18.9%, to €7.0 million due to the changeover of the production lines to a new processor technology, the expansion of the product range to include the Q24 product line, increased stock on hand due to delivery bottelnecks and the increase in business activity.
Trade receivables decreased to €3.8 million as of September 30, 2009, a decrease of €1.2 million compared to the figure as of June 30, 2009.
Other assets in the amount of €2.3 million (June 30, 2009: €2.7million) included the pending subsidy entitlement amounting to €0.2 million and pre-tax claims amounting to €0.4 million, among other items.
The decline in cash and cash equivalents by €1.3 million (-12.6%) to €8.9 million was due to dividend payments and net cash used in investing activities.
On the liabilities side, equity fell by €3.1 million as a result of the the dividend payment of €4.4 million made in September 2009. The decrease in the equity-to-assets ratio from 61.1% to 55.3% accompanied by a decrease in total assets of €1.1 million (-2.7%) is due to the dividend payment.
Income tax for 2008 was paid in July 2009, resulting in a corresponding decrease in provisions. The decrease in liabilities to banks results from the scheduled repayments of the loans. Trade payables as of the reporting date grew by €0.7 million to €3.2 million.
In comparison to June 30, 2009, other liabilities increased by €1.9m to € 3.4m mainly due to payment obligations related to the personnel department as well as obligations of payment of income tax in connection with the dividend payments amounting to € 1.2 million.
Based on the developments described above, the total assets of the MOBOTIX Group fell by €1.1 million (-2.7%) to €40.3 million as of September 30, 2009 compared to the reporting date of June 30, 2009.
Cash flow from operating activities of the MOBOTIX Group was €3.3 million in the first quarter of fiscal year 2009/10, compared to €2.6 million in the prior-year period. Cash outflows for investments decreased by €3.0 million to €1.1 million. Cash paid for capital expenditure on property, plant and equipment amounted to €0.9 million. Negative cash flow from financing activities amounted to €3.5 million, largely due to payment of the dividend for fiscal year 2008/09 in the amount of €3.2 million and disbursements for interest and principal payments in the amount of €0.2 million. Payment of income tax amounting to €1.2 million occurred in October 2009. In the corresponding prior-year period, the negative cash flow from financing activities had amounted to €0.2 million.
The various cash flows generated during the reporting period resulted in cash and cash equivalents of €8.9 million as of September 30, 2009. The Company's solvency was guaranteed at all times during fiscal year 2009/10. Because of the Company's credit standing, it continues to have a number of financing options available.
Non-current liabilities of € 8.8 million are, compared to June 30, 2009, almost unchanged. Non-current liabilities as a share of total assets increased from 21.6% to 22.0% due to the decline in total assets. Current liabilities as of the reporting date correspond to 22.8% of total assets, compared to 17.2% in the prior year. The Group's net assets, financial position and results of operations – which are characterized by continued strong growth and high profitability – fully reflect the expectations of the Management Board.
Development activities were also further expanded during the last twelve months. Until September 30, 2009, the MOBOTIX Group had 56 employees 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.
Development activities are essentially done only in-house. Outsourcing of development activities occurs only on a very small scale, and only in the area of tool design and PC board layout.
In the last fiscal year, the market launch of the hemispheric camera product line Q24 was continued. In addition, the new version of the extensively revised MxCC 2.0 video management software and the first version of the video management software for the MxEasy semi-professional segment were introduced to the market. Furthermore, considerable development resources are tied up with the changeover of the existing camera lines to a more efficient processor technology and the development of an IP based door station. The door station is expected to be launched on the market in the current fiscal year 2009/10. Furthermore, the foundation was laid in development for additional product innovations in fiscal year 2008/09. These innovations are expected to be launched on the market in fiscal year 2009/10.
In the last quarter 14 employees were hired. Until September 30, 2009, the MOBOTIX Group had 213 employees, compared to 204 employees at the beginning of the fiscal year. Fiscal year 2009/10 will see additional staff increases, particularly in marketing, sales and development.
213 (Head count incl. management board, trainees and temps)
On June 30, 2009 Horst Pfi ffi stepped down from the Board of Management of MOBOTIX AG. Since July 16, 2009 his Board of Management responsibilities were taken over by Klaus Borchers until October 16, 2009.
In the period under review, the following securities transactions subject to reporting requirements were executed by members of the Supervisory Board or the Management Board.
| Date of | Type of | Stock | Number of | ||||
|---|---|---|---|---|---|---|---|
| Name | Function | Transaction | Transaction | exchange | shares | Price € | Total Volume € |
| Lutz Coelen | CFO/CSO August 20, 2009 | Purchase | Xetra | 500 | 26.10 | 13,050 | |
| August 24, 2009 | Purchase | Xetra | 1,300 | 29.44 | 38,266 |
No events of any signifi cance occurred after the end of the fi rst quarter under review 2009/10.
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.
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 2008/09 Annual Report for details of any significant specific risks.
The initial impact of the current financial crisis and the ensuing consequences for the real economy have led to the postponement of a few isolated projects, particularly in the last quarters. Furthermore, it became apparent that distributors have reduced their inventories and accordingly their capital tied up in inventories. It is impossible to estimate the extent of the crisis and its short- and mid-term effects on the business development. MOBOTIX will confront the negative effects by developing an even stronger sales structure.
During the period under review, our risk situation and risk management did not deviate from that described in the Annual Report 2008/09. No risks that could jeopardize the continued existence of the Company are anticipated.
Despite the financial crisis, 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 switch from analog to digital technology. If this switch should happen sooner than expected, it could produce additional opportunities 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.
In the opinion of the Management Board, increased publicity will provide new opportunities, e.g. to acquire new employees, sales partners, and customers.
MOBOTIX is represented throughout the world. A key factor for unlocking future growth potential today and in the future involves continuing to pursue targeted expansion of our partner
network in order to broaden our sales structures. With its outstanding global market position – particularly in the subsegment of highresolution network cameras – MOBOTIX is in a very good position to take advantage of the opportunities at hand.
In terms of regions, the Management Board sees key growth areas for the coming months in North America, South America and Asia.
The market introduction of the first hemispheric camera, the Q24, has so far been very successful, with extremely positive feedback from distributors. The fact that the Company's main competitors cannot offer any comparable products shows MOBOTIX AG's innovative strength, and enables it 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.
Considering the insecure global economic situation it is diffi cult to provide reliable business forecasts. The management board assumes that the upcoming product launches and the company's extension of global distribution will lead to further signifi cant revenue growth.
During the period under review, no changes of any signifi cance occurred with regard to transactions with related parties in comparison with fi scal year 2008/09.
Winnweiler-Langmeil, October 21, 2009
The Management Board
Dr. Ralf Hinkel • CEO MOBOTIX AG
Lutz Coelen • CFO/CSO MOBOTIX AG
| EUR '000s | see notes | July 1, 2009- Sept. 30, 2009 |
July 1, 2008- Sept. 30, 2008 |
|---|---|---|---|
| Revenue | (1) | 10,599 | 10,306 |
| Increase in finished goods and work in progress | 650 | 48 | |
| Other own work capitalized | (2) | 174 | 194 |
| Total output | 11,422 | 10,547 | |
| Cost of materials | (3) | -3,182 | -3,169 |
| Gross profit | 8,241 | 7,379 | |
| Staff costs | (4) | -3,123 | -2,640 |
| Depreciation and amortization | -443 | -279 | |
| Other operating income | (5) | 93 | 193 |
| Other operating expenses | (6) | -2,711 | -2,185 |
| Operating profit | 2,056 | 2,467 | |
| Other interest and similar income | (7) | 35 | 120 |
| Interest expense and similar charges | (8) | -132 | -108 |
| Profit before tax | 1,960 | 2,479 | |
| Income taxes | (9) | -593 | -720 |
| Profit for the period | 1,367 | 1,759 | |
| Profit attributable to shareholders of MOBOTIX AG | 1,367 | 1,759 | |
| Earnings per share (diluted/basic) | (10) | 0.31 | 0.40 |
| Consolidated Statement of Comprehensive Income (Loss) | July 1, 2009- | July 1, 2008- |
|---|---|---|
| for the Period from July 1, 2009 to September 30, 2009 | Sept. 30, 2009 | Sept. 30, 2008 |
| Profit for the period | 1,367 | 1.759 |
| Difference resulting from currency translation | 1 | -28 |
| Accumulated other comprehensive income (after tax) | 1 | -28 |
| Total comprehensive income of the period | 1,368 | 1.731 |
| Profit attributable to shareholders of MOBOTIX AG | 1,368 | 1,731 |
| EUR '000s | see note Sept. 30, 2009 | June 30, 2009 | |
|---|---|---|---|
| Intangible assets | (11) | 1,570 | 1,462 |
| Property, plant and equipment | (12) | 16,254 | 15,682 |
| Prepaid expenses | 110 | 115 | |
| Deferred tax assets | 116 | 109 | |
| Non-current assets | 18,050 | 17,369 | |
| Inventories | (13) | 6,959 | 5,851 |
| Trade receivables | 3,812 | 5,011 | |
| Other assets | (14) | 2,284 | 2,694 |
| Cash and cash equivalents | 8,860 | 10,142 | |
| Prepaid expenses | 303 | 336 | |
| Current assets | 22,219 | 24,034 | |
| ASSETS | 40,269 | 41,402 | |
| Subscribed capital | (15) | 4,424 | 4,424 |
| Capital reserves | 9,665 | 9,665 | |
| Accumulated other comprehensive income | 38 | 36 | |
| Profit or loss carried forward | (15) | 6,757 | 3,643 |
| Profit for the period | (15) | 1,367 | 7,538 |
| Equity | 22,250 | 25,306 | |
| Liabilities to banks | (18) | 8,250 | 8,394 |
| Deferred tax liabilities | 589 | 567 | |
| Non-current liabilities | 8,839 | 8,961 | |
| Tax provisions | (16) | 1,667 | 2,199 |
| Other provisions | (17) | 158 | 165 |
| Liabilities to banks | (18) | 714 | 714 |
| Trade payables | 3,233 | 2,498 | |
| Other liabilities | (19) | 3,407 | 1,560 |
| Current liabilities | 9,180 | 7,136 | |
| EQUITY AND LIABILITIES | 40,269 | 41,402 |
| EUR '000s | July 1, 2009- Sept. 30, 2009 |
July 1, 2008- Sept. 30, 2008 |
|
|---|---|---|---|
| Profit before tax for the period | 1,960 | 2,479 | |
| +/- Net interest income or expense | 96 | -12 | |
| + | Depreciation and amortization of property, plant and equipment, and intangible assets |
443 | 279 |
| + | Interest received | 16 | 102 |
| +/- Increase/Decrease in other provisions | -6 | 8 | |
| + | Loss on disposal of non-current assets | 0 | -3 |
| + | Other non-cash expenses | 4 | 18 |
| Operating profit before changes in working capital | 2,512 | 2,872 | |
| +/- Decrease/Increase in inventories, trade receivables and other assets not attributable to investing or financing activities |
523 | -441 | |
| + | Increase trade payables and other liabilities not attributable to investing or financing activities |
1,393 | 347 |
| Cash flow from operating activities before tax | 4,428 | 2,777 | |
| - | Income tax paid | -1,109 | -189 |
| Cash flow from operating activities | 3,320 | 2,589 | |
| - | Cash paid for purchases of property, plant and equipment | -944 | -3,915 |
| - | Cash paid for purchases of intangible assets | -180 | -195 |
| + | Cash received from subsidies | 33 | 0 |
| + | Cash received from disposals of property, plant and equipment | 0 | 20 |
| Cash flow from investing activities | -1,091 | -4,090 | |
| - | Dividends paid | -3,257 | 0 |
| - | Cash paid for the redemption of loans | -177 | -164 |
| - | Interest paid | -75 | -37 |
| Cash flow from financing activities | -3,510 | -202 | |
| Net change in cash and cash equivalents | -1,281 | -1,703 | |
| Effect of exchange rate and other changes on cash and cash equivalents | -1 | -1 | |
| Cash and cash equivalents at the beginning of the reporting period | 10,142 | 10,475 | |
| Cash and cash equivalents at the end of the reporting period | 8,860 | 8,771 |
| EUR '000s | Subscribed capital |
Capital reserves |
Accumulated other comprehensive income |
Profit or loss carried forward |
Result for the period |
Total |
|---|---|---|---|---|---|---|
| Balance as of July 1, 2008 | 4,424 | 9,665 | 88 | 5,854 | 0 | 20,031 |
| Currency translation | -28 | -28 | ||||
| Profit for the period | 1,759 | 1,759 | ||||
| Balance as of Sept. 30, 2008 | 4,424 | 9,665 | 60 | 5,854 | 1,759 | 21,762 |
| Dividend payment | -2,212 | -2,212 | ||||
| Currency translation | -23 | -23 | ||||
| Profit for the period | 5,779 | 5,779 | ||||
| Balance as of June 30, 2009 | 4,424 | 9,665 | 37 | 3,642 | 7,538 | 25,306 |
| Balance as of July 1, 2009 | 4,424 | 9,665 | 37 | 11,180 | 0 | 25,306 |
| Dividend payment | -4,424 | -4,424 | ||||
| Currency translation | 1 | 1 | ||||
| Profit for the period | 1,367 | 1,367 | ||||
| Balance as of Sept. 30, 2009 | 4,424 | 9,665 | 38 | 6,756 | 1,367 | 22,250 |
Equity € 22.3m Equity-To-Assets Ratio 55.3%
MOBOTIX AG was established on June 21, 1999. Since September 30, 2009 the company's registered office is in Winnweiler-Langmeil (Kaiserstrasse, 67722 Winnweiler-Langmeil).
MOBOTIX AG is a European technology leader and system provider of digital, high-resolution, network-based video security systems, video management software, and systems accessories. At the heart of MOBOTIX technology are proprietary, internally manufactured, fully digital network cameras.
Most of 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.
The condensed Interim Consolidated Financial Statements of MOBOTIX AG as of September 30, 2009 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 2009/10 fiscal year.
The accounting policies applied in the condensed Interim Consolidated Financial Statements as of September 30, 2009, 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 2008/09 fiscal year.
In line with the revision of IAS 1 "Presentation of Financial Statements," the consolidated financial statements now contain a separate statement of comprehensive income in addition to the income statement. This statement shows the net inome for the period, the total other comprehensive income (i.e. total non-owner changes in equity) and the sum of those two items, the total comprehensive income.
The condensed Interim Consolidated 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 June 30, 2009.
Unless stated otherwise, all figures in the condensed consolidated financial statements are stated in thousands of euro (€ thousand). The translation of euro into thousands of euro may give rise to rounding differences of plus or minus one unit (thousands of euro or percent).
The basis of consolidation used by MOBOTIX AG for the three-month period as of September 30, 2009 is the same as that used in the consolidated financial statements for the year ended June 30, 2009 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. In addition, MOBOTIX AG Schweiz has been consolidated using the equity method because it is an associate.
A presentation of the breakdown of revenue by region and product group is provided in the section on segment reporting.
Other own work capitalized in the first three months of fiscal year 2009/10 refers primarily to capitalized development costs of €168 thousand (prior year: €194 thousand).
| EUR '000s | July 1, 09- Sept. 30, 09 |
July 1, 08- Sept. 30, 08 |
|---|---|---|
| Cost of raw materials, supply and merchandise |
3,090 | 3,108 |
| Cost of purchased services | 92 | 61 |
| Total | 3,182 | 3,169 |
The cost of materials includes all materials used to produce the cameras. To a small extent it also includes the cost of services rendered, such as the cost of outsourced production and development activities.
| EUR '000s | July 1, 09- Sept. 30, 09 |
July 1, 08- Sept. 30, 08 |
|---|---|---|
| Wages and salaries | 2,747 | 2,295 |
| Social security | 376 | 345 |
| Total | 3,123 | 2,640 |
The rise in staff costs reflects the increase in the workforce. The MOBOTIX Group employed 213 people (Sept. 30, 2008: 196) as of the reporting date.
Other operating income primarily comprises gains from exchange differences and amounts reimbursed by employees for private use of company cars.
Other operating expenses comprise all expenses not allocated to other items. They include the cost of marketing, office supplies, communications, legal and other advice, premises, maintenance, and trade fairs and exhibitions.
The increase of €526 thousand, or 24.1%, to €2,711 thousand compared with the corresponding period of the prior year was largely attributable to the rise in marketing and trade fair/exhibition costs and to higher operating costs as a result of the growth in business volume.
Other interest and similar income essentially comprises interest income from short-term and demand deposits held with banks.
Interest expense and similar charges mainly comprise the interest paid on bank loans.
The table below gives a breakdown of income taxes:
| EUR '000s | July 1, 09- Sept. 30, 09 |
July 1, 08- Sept. 30, 08 |
|---|---|---|
| Current taxes | 577 | 703 |
| Deferred taxes | 16 | 17 |
| Total | 593 | 720 |
The tax rate applicable as of September 30, 2009 was 30.2% (in the prior year 29.0%).
The earnings per share figure is calculated as the company's total profit attributable to the shareholders of MOBOTIX AG divided by the weighted average number of shares outstanding.
In the first three months of the current fiscal year 2009/10, earnings per share amounted to €0.31 based on a weighted average number of shares outstanding of 4,423,814. In the first three months of the previous fiscal year, earnings per share amounted to €0.40 (weighted average number of shares outstanding of 4,423,814). There was no dilutive effect on MOBOTIX AG's profit for the period.
The cost of developing camera housings, electronics, and software projects was capitalized at cost in the amount of €168 thousand in the first three months of 2009/10 (previous year: €194 thousand). The capitalized development costs of €1,728 thousand as of September 30, 2009 (June 30, 2009: 1,561) cover all costs directly attributable to the development process. The accumulated amortization and impairment amounted to €285 thousand as of September 30, 2009 (June 30, 2009: €237 thousand). The development projects are amortized on a uniform, straight-line basis over a period of three years following completion.
The additions to property, plant and equipment essentially relate to the construction activities at the new headquarter in Langmeil as well as other investments in machinery.
MOBOTIX AG has received as of September 30, 2009 a subsidy allocation in the amount of €2,199 thousand for the construction of the new production and administrative building in Langmeil. On September 30, 2009, a subsidy entitlement of €244 thousand was capitalized for outstanding subsidy allocation. The capitalized subsidy was deducted from non-current assets pursuant to IAS 20.27.
The table below gives a breakdown of inventories:
| EUR '000s | Sept. 30, 09 June 30, 09 | |
|---|---|---|
| Raw materials and supplies |
2,793 | 2,427 |
| Work in progress | 2,176 | 1,980 |
| Finished goods | 1,882 | 1,378 |
| Advance payments | 108 | 65 |
| Total | 6,959 | 5,851 |
The increase in inventories resulted from the introduction of new products and the rise in business volume.
The table below gives a breakdown of other
| assets: | ||
|---|---|---|
| EUR '000s | Sept. 30, 09 June 30, 09 | |
| VAT receivables | 376 | 788 |
| Investment grants | 244 | 277 |
| Loans granted | 230 | 230 |
| Claims for damages | 154 | 143 |
| Accounts payable with a debit balance |
114 | 88 |
| Rent deposits | 43 | 50 |
| Receivables from employees |
10 | 31 |
| Other items | 1,113 | 1,087 |
| Total | 2,284 | 2,694 |
Please refer to the statement of changes in equity for an overview of the development of equity.
The dividends for fiscal year 2008/09 were paid out in September 30, 2009 in the amount of €4,424 thousand pursuant to the shareholders' resolution of MOBOTIX AG, Winnweiler-Langmeil, of September 30, 2009. The payment of income tax in the amount of € 1,167 thousand was executed at the beginning of October 2009.
By resolution of the annual general meeting held on 30 September 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 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.
The acquisition can be implemented as a purchase on the stock exchange or by a public purchase offer to all shareholders. If the number of tendered shares in a public purchase offer exceeds the total number of shares envisaged for acquisition by the Company, the acquisition can be implemented under exclusion of the tender rights of the shareholders on a pro-rata basis related to the number of shares tendered, in order to simplify the purchase process.
This simplification – also under exclusion of the tender rights of the shareholders – also makes it possible to accept small numbers of up to 100 tendered shares per shareholder on a preferential basis.
Furthermore, the Management Board is to be authorized, with the consent of the Supervisory Board, to use the treasury shares acquired in accordance with the authorization also for
purposes for which the subscription right of the shareholders is ruled out.
The tax provisions of €1,667 thousand (June 30, 2009: €2,199 thousand) include provisions for municipal trade tax, corporation tax, and the solidarity surcharge for the assessment periods 2008, 2009 and 2010.
Other provisions primarily relate to provisions for warranties and customer rebates.
Loans in the amount of €177 thousand were repaid as scheduled in the first three months of fiscal year 2009/10.
The other liabilities had terms of less than one year. They primarily comprised obligations of payment of income tax together with solidarity surcharge in the amount of €1,167 thousand as well as personnel liabilities.
During the period under review, no changes of any significance occurred with regard to transactions with related parties in comparison with fiscal year 2008/09.
Revenue by product line is broken down as follows:
| EUR' 000s | July 1, 09- Sept. 30, 09 |
July 1, 08- Sept. 30, 08 |
|---|---|---|
| Fixed Cams | 5,615 | 5,938 |
| Dome Cams | 4,394 | 3,818 |
| Other | 590 | 550 |
| Total | 10,599 | 10,306 |
Revenue by region is broken down as follows:
| EUR' 000s | July 1, 09- Sept. 30, 09 |
July 1, 08- Sept. 30, 08 |
|---|---|---|
| Germany | 3,892 | 3,882 |
| Rest of Europe | 4,359 | 4,082 |
| Other | 2,348 | 2,342 |
| Total | 10,599 | 10,306 |
In accordance with IFRS 8 "Operating Segments," the definition of the segments is based on the Company's internal reporting structure. At MOBOTIX AG, these segments are primarily defined by region, but also by product category. The regions represent the basis for corporate planning and allocation of resources.
The control of the MOBOTIX Group is based on revenue in view of the individual segments due to the internal structures and the size of the Company. Profitability ratios and performance-based statements are only made on the level of the entire company.
The Company's product categories are broken down as detailed below:
The fixed cams include the M12, M22 and V12 camera lines.
The M12 is usually equipped with two image sensors and a passive infrared sensor. This camera series also comes with a microphone and a speaker for audio communication. If there is no DSL connection, the M12 can be easily hooked up to the internet via its integrated ISDN connection that can be used to transmit data over the internet and to forward voice messages and alarm alerts, for example to telephones. IP telephony based on the VoIP SIP standard is also available directly from the camera. Various camera modules can be used so that a wide-angle lens can be combined with a telephoto lens. The M12 Day/Night model is equipped with a light-sensitive black and white sensor for use at night and a color sensor that provides sharp color images in daylight. The automatic switching between the two sensors is purely electronic with no mechanical moving parts.
The M22 is the mono version of the M12 and, with the exception of the passive infrared sensor and ISDN connection, features all the functionality of the M12. Audio communication is also available via the integrated microphone and speaker. All telephony functionality is based on the VoIP SIP standard.
The V12 vandalism-proof camera has been especially designed for use in locations with a high risk of vandalism, such as prisons. The camera housing is made of 3mm-thick stainless steel. It is also protected by a 6mm thick cover and is triangular in shape so that it can be mounted in the corner of a room and fixed in place using heavy-duty dowels. To illuminate the room when it is dark, the V12 is equipped with integrated, remote-controlled IR lighting with 20 infrared LEDs.
The dome cams currently include the D12, D24 and Q24 camera models.
The D12 is a dome camera that features two manually adjustable modules. It is based on the same hardware as the M12 although, unlike the M12, its camera modules can be individually positioned in any direction when mounted. This makes it possible, for example, to position a wide-angle lens in one direction and a telephoto lens in another direction. With two super-wide-angle lenses each covering a 90-degree horizontal viewing angle, the camera can monitor an area of 180 degrees in panorama view. The software integrated into the camera enables the two generated images either to be shown separately or to be combined into a single image.
The D24 is a dome camera that features a manually adjustable module and off ers all the software functionality of the other camera series. Although it is not equipped with an infrared sensor, microphone or speaker, these can be externally retrofi tted. In locations with a high risk of vandalism, the already robust D24 models can be given extra protection with the optional Vandalism Set, which includes a 3mm-thick polycarbonate dome and an additional stainless steel cover.
The Q24 model is an ultra-compact IP-Dome camera that features a 360° allround view. The camera line allows a hemispherical allround view for complete room coverage, digital, continuous zooming and panning as well as event-driven complete room recording directly in the camera. In addition, the camera features all the software functionality of the other camera series. The speaker and microphone are integrated into the camera. The range of accessories includes, for example, a vandalism housing and an in-ceiling set.
MOBOTIX off ers the appropriate accessories for all camera series to enable the cameras to be properly mounted and to protect their cables and leads. Various installation kits for mounting cameras on surfaces and walls or integrating them into suspended ceilings are supplied for each model. MOBOTIX AG also generates a small amount of revenue from training seminars.
Internal reports are submitted to the Management Board. Only revenue is reported for each product category and region.
Intersegment revenue is not netted.
No single customer generates more than 10% of the MOBOTIX Group's revenue.
Winnweiler-Langmeil, October 21, 2009
The Management Board
Dr. Ralf Hinkel • CEO MOBOTIX AG
Lutz Coelen • CFO/CSO MOBOTIX AG
To the best of our knowledge, we hereby affi rm that, pursuant to the generally accepted accounting principles for interim reporting, the consolidated fi nancial statements give a true and fair view of the net assets, fi nancial 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 refl ection, and that it describes the major risks and opportunities inherent in the development of the Group during the remaining fi nancial year.
Winnweiler-Langmeil, October 21, 2009
The Management Board
Dr. Ralf Hinkel • CEO MOBOTIX AG
Lutz Coelen • CFO/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 (until October 7, 2009: Kaiserslautern), for the period from July 1 to 30 September 2009 that are part of the quarterly financial report according to § 37 x 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, October 21, 2009
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).
| Report on the first six months of fiscal year 2009/10 | February 10, 2010 |
|---|---|
| Report on the first nine months of fiscal year 2009/10 | May 12, 2010 |
| Annual general meeting 2009/10 in Winnweiler-Langmeil | October 2010 |
| Contact Details | MOBOTIX AG |
|---|---|
| Lutz Coelen | Investor Relations |
| CFO and CSO | Kaiserstrasse |
| Phone: +49 6302 9816-111 | 67722 Langmeil |
| Fax: +49 6302 9816-190 | 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
... 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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