Annual Report • Aug 16, 2012
Annual Report
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English 08/2012
The products of the new Access Control & Communications product segment will enable direct communication from the front door to the smart phone, regardless of where the user is located at that moment. The IP-based technology, which was developed in-house, is far ahead of current systems, and in addition will make it possible to integrate door communication, video monitoring, alarm systems, access control and home control from a single source via iPhone and iPad. Another significant innovation is efficient access via mobile phone networks with low data bandwidth.
Some components, such as display terminal and the App, have not yet gone into full production, so they can be used currently only via video-IP phones and not the smartphone. In April, both new key components have already been very successfully introduced at the Light+Building trade fair. The first systems are already being installed in large apartment buildings.
The new S14 camera line with its miniature installation modules was launched at the end of June and it promises new market shares in the area of discreet monitoring. Moreover, the S14 is a camera system that has been specially optimized
for use in the mobile sector for the transport market, and in this way expands the areas of application of the MOBOTIX camera systems.
The HiRes Video Company
The sales organization was optimized for further growth in the last twelve months. The restructuring had a temporary influence on revenue growth in the last quarters. In Germany, a turnaround can already be seen. Here, revenue in the first three quarters of the fiscal year increased by 22% compared to the first three quarters of fiscal year 2010/11.
In light of the debt and financial crisis, noticeable restraint can be seen in the Mediterranean countries of Europe. The uncertainty in these markets makes a forecast very difficult. On the other hand, the weak euro contributes to expansion in the American and Asian markets and will bring further growth. Altogether, growth in Europe is in fact slightly positive; however, the development in the months to come continues to be uncertain due to the financial crisis.
For the following fiscal year, we expect that the restructured sales structure and the new product segment Access Control & Communication as well as the new S14 camera line will bring continued robust growth in revenue and EBIT.
Dr. Ralf Hinkel • CEO MOBOTIX AG
Note: Because of the fiscal year changeover and the three-month short fiscal year in the last year, the year-on-year comparison is not calendar-based but is instead quarterly-based. This means that in addition to the comparsion with the short fiscal year, which does not supply meaningful information but is necessary for accounting reasons, the current fiscal year (October 1, 2011 to September 30, 2012) will also be compared with the last complete fiscal year (July 1, 2010 to June 30, 2011).
| Content | |
|---|---|
| Letter To The Shareholders | 1 |
| MOBOTIX At A Glance | 3 |
| Highlights 2011/12 | 4 |
| Company Profile | 5 |
| The MOBOTIX Concept | 6 |
| MOBOTIX Cameras In Operation Throughout The Globe | 8 |
| The MOBOTIX Technology | 10 |
| The MOBOTIX Storage Technology | 12 |
| MOBOTIX Shares | 14 |
| Interim Consolidated Management Report | 18 |
| Business And Market | 18 |
| Results Of Operations, Net Assets And Financial Position | 22 |
| Research And Development | 26 |
| Employees | 26 |
| Changes In The Board Of Management | 26 |
| Director's Dealings | 27 |
| Significant Events After The First Three Months | 27 |
| Opportunities And Risks Of Future Development And Outlook | 28 |
| Interim Consolidated Financial Statements | 34 |
| Consolidated Income Statement, Consolidated Statement Of Comprehensive Income (Loss) | 34 |
| Consolidated Statement Of Financial Position | 35 |
| Consolidated Statement Of Cashflows | 36 |
| Consolidated Statement Of Changes In Equity | 37 |
| Notes To The Consolidated Financial Statements | 38 |
| Responsibility Statement | 44 |
| Independent Auditors' Review Report | 46 |
| Further Information | 48 |
| 9 months (October 1, 2011 to June 30, 2012, prior year: July 1, 2012 to March 31, 2011) |
2011/12 | 2010/11 | Delta % |
|---|---|---|---|
| Financial performance | €'000s | €'000s | |
| Total Output | 61,816 | 54,169 | +14.1 |
| Revenue | 59,709 | 51,399 | +16.2 |
| Thereof outside of Germany (in %) | 74.0 | 75.3 | |
| EBITDA | 15,599 | 14,784 | +5.5 |
| EBITDA as % of total output | 25.2 | 27.3 | |
| EBIT | 12,909 | 12,656 | +2.0 |
| EBIT as % of total output | 20.9 | 23.4 | |
| Profit before tax | 12,542 | 12,302 | +2.0 |
| Return on revenue in % before tax | 21.0 | 23.9 | |
| Profit for the period | 9,066 | 8,671 | +4.6 |
| Cash flow from operating activities | 11,576 | 9,308 | +24.4 |
| Financial position | June 30, 2012 | Sep. 30, 2011 | |
| Equity | 40,912 | 39,006 | +4.9 |
| Equity-to-assets ratio in % | 65.6 | 66.1 | |
| Total assets | 62,367 | 59,027 | +5.7 |
| Non-current assets | 25,713 | 24,876 | +3.4 |
| Current assets | 36,654 | 34,151 | +7.3 |
| Thereof cash and cash equivalents | 7,008 | 6,994 | +0.2 |
| Employees | |||
| Number of employees (Reporting date) | 356(1) | 300(1) | +21.9 |
| Revenue per employee | 204(2) | 210(3) | -2.9 |
| EBIT per employee | 44(2) | 52(3) | -15.4 |
| Key figures per share (in EUR) | |||
| Earnings per share (EPS)(4) | 0.69 | 0.66 | -4.5 |
| Dividend (after the share split) | 0.50 | 0.33 | +50.0 |
| Cash flow as per DVFA/SG(4) | 0.89 | 0.83 | +7.2 |
1) Including trainees and temporary staff, 4 members of the Management Board; by headcount.
2) Based on an average of 293 employees.
3) Based on an average of 245 employees.
4) Based on an average of 13.200 (previous year 13.221) million shares (after the share split).
Revenue € 59.7m (+16.2%)
Prime Standard since March 31, 2008
As a publicly traded company, MOBOTIX AG is a software Company with in-house hardware development for digital, high-resolution and network-based video security solutions. Whether in embassies, airports, gas-stations, highways or private homes, MOBOTIX video systems are now found world-wide with over one hundred thousand units in operation on every continent. In addition to the actual IP video cameras with megapixel resolution, MOBOTIX also produces interface components and video management software for operating complete security solutions. The system concept – a distinctive software solution and decentralized camera systems – significantly distinguishes MOBOTIX from its competitors with MOBOTIX first having made high-resolution, hemispheric systems cost-efficient. With over 300 employees, and an export share of over 70%, MOBOTIX has achieved a 7% global market share.
MOBOTIX has designed a decentralized system architecture that allows images to be analyzed in the camera, instead of a central PC. Thus, the cameras detect movements in the image independently, store them in a database and report the results via eMail or VoIP phone calls. This decentralized structure relieves the network, allows the integrated video management to make higher image rates possible and reduces the number of storage systems for recording high-resolution video sequences many times over.
The hemispheric camera technology developed at MOBOTIX permits the recording of an entire room from the ceiling or a wall – independent of the selected live image detail – using a single camera, so that other room areas can be viewed later during a searchanalysis phase. Details of the hemispheric live image, resembling a fish-eye, are already digitally transformed in the camera in such a way that the users believe they are using a panning camera.
The powerful innovative strength of MOBOTIX has enabled it to be the first to introduce nearly all significant innovations in the IP camera sector market in the last ten years. For this reason, MOBOTIX is seen as the industry's technology leader. With growth rates up to 50%, MOBOTIX has continued to rapidly gain global market share since 1999.
MOBOTIX uses hemispheric technology in the T24 IP Video Door Station to achieve further growth in a new, closely related market for access control and door intercom devices and to establish itself in the rapidly expanding home automation sector. When the doorbell rings, a connection is established with a standard VoIP phone or a computer via the network so that the door station can be operated and the door opened remotely from anywhere in the world. The integration of iPhone and iPad play an important role here.
The German company MOBOTIX AG is known as the leading pioneer in network camera technology and its decentralized concept has made high-resolution video systems cost efficient.
HiRes Video Innovations And Technology Leader The German company MOBOTIX AG is known as the leading pioneer in network camera technology since its founding in 1999, and its decentralized concept has made highresolution video systems cost efficient.
MOBOTIX has been producing megapixel cameras exclusively for many years now and is regarded as the global market leader for high-resolution video systems.
The higher the resolution, the more accurate the detail in the image. With analog technology, a recorded image generally has no more than 0.1 megapixels (CIF). One single MOBOTIX camera with 3.1 megapixels records around 30
times more detail. As a result, larger image areas with up to 360° allround views are possible, thus reducing the number of cameras and therefore the costs. For example, four lanes of a gas station can be recorded with one MOBOTIX camera instead of four conventional cameras.
Usually, cameras only supply the images while the processing and recording is done later on a central PC using expensive video management software. This traditional centralized structure has many limitations, since it requires high network bandwidth and the PC processing power is not enough for several cameras. An HDTV MPEG4 film already puts considerable strain on a PC, so how can it be expected to process dozens of high-resolution live cameras? Traditional centralized systems are therefore less suitable and unprofitable when compared with high-resolution systems due to the high number of PCs needed.
MOBOTIX has redefined video. Whether on the Internet, in traffic management, building surveillance or banking environment, the MOBOTIX camera is connected to the network like a printer and live and recorded images can then be retrieved from any PC without installing any software.
Unlike other systems, with the decentralized MOBOTIX concept, a high-speed computer and if necessary, digital long-term memory (MicroSD Card) is built into every camera, providing several days of recording time. The PC and the video control center now serve only for viewing and controlling the cameras (PTZ), not for analysis or recording. This makes it unnecessary to purchase expensive video management software, as the most important and computer-intensive functions are already integrated in the MOBOTIX cameras.
MOBOTIX cameras have neither mechanical motors for lenses nor for movement. Without
MicroSD integrated
MOBOTIX video solutions therefore require significantly:
• fewer cameras due to the more accurate detail of panoramic images with megapixel technology,
any moving parts, they are therefore so robust that maintenance is reduced to a minimum. The unique temperature range from -30 to +60 °C is achieved without heating or a fan at only 3 watts. Since no PC hard disk is required for recording, there are no parts that wear out in the entire video system.
With MOBOTIX, the software for controlling the camera and searching for events can be used at no charge. You can easily control the video system from any standard PC. This even works worldwide via a DSL Internet connection.
To guarantee security in the stadiums during the FIFA World Cup in Qatar in 2022, MOBOTIX has already equipped four of the completed or renovated World Cup arenas with IP video systems and managed to successfully compete against international rivals in the bidding process. The installations were completed already in late 2010 so the system could be tested in January 2011 during the Asian Cup of the Asian Football Confederation (AFC).
Altogether about 600 cameras were installed from the model series M12, DualDome Camera D12, both with day and night sensors, as well as the hemispheric camera
Q24 with a continuous 360 degree allround view. About 200 Mx2wire Media Converters were installed so that the existing cable structure could be used to save costs. The included MxControlCenter software, which MOBOTIX offers free of charge, was used in all four stadiums for professional video management. Thanks to the positive experiences, additional projects are already in the planning stage.
The Barwa Financial District (BFD) is an office and retail complex currently under construction in Doha, Qatar. Nine skyscrapers with offices, a shopping mall, a 5-star hotel and a mosque will be located on the property measuring 670,000 square meters. The buildings will have an average height of between 21 and 36 floors. The 52-floor skyscraper tower will be the highlight of the BFD area and in the future will dominate Doha City's skyline. The investors of the project selected IP video systems from MOBOTIX to guarantee the security of the residents, employees and guests of the complex. For this purpose, 760 MOBOTIX cameras (700 D24 and 60 Q24 cameras) are currently being installed in the Barwa Financial District. In the bidding process, MOBOTIX successfully competed against numerous well-known rivals such as Axis and Honeywell.
Airbus S.A.S., Commerzbank AG, Daimler AG, Deutsche Bahn Station & Service AG, Fraport AG, EON Wasserkraft, Le Méridien Parkhotel Frankfurt, Lübecker Hafen-Gesellschaft mbH, MAN Logistics, Max Planck Institute for Chemical Ecology, Schenker GmbH, Skoda Auto Deutschland GmbH, etc.
Arriva offers train and bus transportation in various provinces in the Netherlands. Based
on innovative transport solutions that optimize comfort and safety for the travelers, the Company is continously expanding. For this reason, Arriva has equipped all its buses and trains with surveillance cameras from the beginning on to ensure the safety of passengers and drivers. To increase the safety even more, the Company has replaced its analog cameras in the buses of the Achterhoek Riverland line with a new generation of IP cameras. The cameras must guarantee highresolution video and high-quality audio recordings. After a testing phase of several months, Arriva selected the MOBOTIX Q24 360° camera to secure the interior areas of the buses, while M12 cameras provide security in the front area of the buses. Altogether 210 mobile MOBOTIX cameras are currently being used in the Arriva buses.
A MOBOTIX camera now makes it possible to view the peak of Mount Everest in real time in complete comfort from your home computer. The camera has already established a world record being the highest webcam in the world. The scientific team Ev-K2-CNR from Bergamo, Italy has installed a MOBOTIX M12 camera on nearby Kala Patthar (5,675 meters) which delivers impressive images of Mount Everest. The research project "SHARE Everest 2011" is part of the international climate and environmental monitoring system called "SHARE - Stations at High Altitude for Research on the Environment." The researchers hope to gain knowledge concerning climate change and global warming. Powered by a solar panel, the MOBOTIX
camera delivers highquality images despite frigid temperatures as low as minus 30° Celsius. The camera is robust and versatile, making it ideally suited for harsh environmental conditions.
Abu Dhabi Airport (United Arab Emirates), Bahrain Defense Hospital (Bahrain), EURO 2012 Soccer Stadium (Ukraine), Hudson River Park (New York), Italian Financial Services Authority (Milano), Republic Polytechnic (Singapore), Orange Mobile (Romania), Vatican Apostolic Library (Vatican City), etc.
The primary components of the hemispheric camera include a fisheye lens, a high-resolution image sensor and image correction software that is integrated into the camera. Using an ultra-wide angle fisheye lens, the camera captures a 180° hemispheric image of the room and projects it onto a high-resolution image sensor.
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).
The perspective of the hemispheric image can also be transformed into an ultra-wide angle panoramic view spanning 180° if
the camera is mounted on a wall, providing a wall-to-wall view of the room without
any blind spots. It offers a substantially better view of the scene, compared to other cameras, it also results in the need for fewer cameras overall. When ceiling mounted, one camera can also capture an entire room by two opposite panoramic views.
Using solutions featuring several individual cameras, moving objects will normally jump from one viewing area of a camera to another. This often produces a confusing situation for the viewer because objects may disappear from sight for a moment or even appear twice if the viewing areas overlap. This is not the case with hemispheric panoramic cameras. Objects remain in view at all times and the viewer can always keep good track of objects in the scene.
In contrast to a normal PTZ camera, which is always focused on one section of a room and only records that section, the virtual PTZ also allows you to pan to other areas at a later stage in the recording as the entire room can be recorded as a hemispheric image.
The Q24 enables a hemispheric 360° panorama view using only a single lens. One single camera can monitor all four corners of a room. The fisheye effect, which is typical for this lens, can be digitally compensated in the live image.
These days, video data is normally preprocessed and stored centrally on a PC or digital video recorder (DVR) using video management software. Video and audio streams from all installed cameras are directed both of the network and of the recording device (PC, server). MOBOTIX cameras can of course also minimize the recording independent of the live video, and the sound channel is recorded even with video recordings of two frames per second.
Standard system requires an extra PC including software for analysis and storage
to this central device. In this case, using highresolution cameras often results in data jam. Above all, storage is inefficient, because if the PC has limited computing power, the highresolution video with a high frame rate must be sent directly to a storage device before it can be processed.
If, like with MOBOTIX cameras, the camera adjusts the image format and the frame rate to the correct values for the specific application (at a gas station, two frames per second are enough for the recording), it relieves the load
The decentralized MOBOTIX concept enables the user to save around 10 times the number of cameras on a single storage device because the camera manages the recording itself (on a PC, server, NAS), thus reducing load on the device. For this reason, practically speaking, there is no memory limit for the entire system because theoretically, each camera is able to manage its own terabyte-sized storage device via the network. Another benefit of this concept is the use of affordable, reliable NAS drives that do not require any special software.
Every single MOBOTIX camera can be configured to record internally or externally via the network. If necessary, a USB stick can be connected by cable directly to the camera, but on the other side of the wall, where it cannot be stolen.
MOBOTIX cameras are also able to store up to 64 GB of video in their integrated memory. Thanks to this high storage capacity and the option of recording only the sequences in which an event occurs, external storage devices such as hard drives are rarely required. This saves on storage devices and network infrastructure and reduces the maintenance cost of mechanical components such as hard drives or fans. The internal SD cards (flash memory) are digital and since they do not have mechanical components, they are maintenance-free.
MOBOTIX cameras are ideal for difficult network conditions or WLAN connections because the internal flash storage bridges network failures or bandwidth fluctuations and synchronizes data when a connection is re-established with the external storage device.
The option of backing up the internal memory at preset times (for example, at night) reduces the load on the network and, in many cases, enables shared use of the existing network infrastructure.
MOBOTIX systems are decentralized and secure, even without a PC for storage
Only relevant image detail (fading out sky, ceiling etc.); only relevant events (e.g. movement in the image); long-term recording only with temporarily increased frame rate during event, but no storage limitations in the MOBOTIX system thanks to modern NAS storage technology.
MOBOTIX AG shares have been listed on the German Stock Exchange since October 10, 2007 and on the Prime Standard segment of "Deutsche Börse AG" since March 31, 2008.
An adverse month of May for the capital market was followed by a robust trend reversal in June. The Americans presented worsened labor market data for May with an 8.2% unemployment rate, and the ISM New York Index for the month of May slid from 61.2 to a low 49.9 points. For the same month, the China Purchasing Managers' Index (PMI) fell to an annual low. The unemployment rate in the eurozone climbed to 11%. German industry reported for April the largest drop in orders in six months at a negative 1.9% on a monthly basis. However, after the European Central Bank held out the prospect of additional resources for safeguarding liquidity and the FED also announced similar measures, the markets recovered steadily. Even the Chinese lowered key interest rates by 25 basis points, the first time in eight years. The result of the recent Greek election on June 17 with a victory for the New Democratic Party and the Panhellenic Socialist Movement (PASOK) and the quick formation of the new coalition government ultimately had hardly any impact on the market. In the last trading week of the month, the stock markets were primarily driven by the EU Summit in Brussels on June 28 and 29 where easier means for tapping into the ESM (European Stability Mechanism) rescue package by the trouble-ridden euro states was approved. Thus, the market environment continues to be very volatile.
MOBOTIX's IPO in October 2007 was one of the few in recent years to have generated positive returns for its initial subscribers, and MOBOTIX shares have since proven exceptionally lucrative as an investment. As an example, initial subscribers realized capital gains of 293.7% (effective date of the IPO: October 10, 2007) while all of the relevant indexes posted substantial losses in value in the same period. The DAX, for instance, lost 19.7%, and the technology-focused TecDAX lost 26.1%. The German Entrepreneurial Index (GEX), on which MOBOTIX shares have been represented since June 23, 2008, also trended much slower since MOBOTIX AG's IPO, losing 57.5%. The GEX tracks owner-operated German companies within the Prime Standard segment of the Frankfurt Stock Exchange that have been listed for a maximum of ten years and are managed by their owners. To qualify as owner-operated, members of the
14
management and supervisory boards or their families must hold between 25% and 75% of the voting shares. In the past short fiscal year 2011, MOBOTIX shares also performed better than the DAX index and several other German stock indexes. In the first nine months of the fiscal year 2011/12, the MOBOTIX share reached a high of EUR 26.89 on February 24, 2012, and a low of EUR 17.60 on June 14, 2012. The closing price on June 30, 2012 was EUR 19.00. Accordingly, MOBOTIX shares lost 3.2% in value in the reporting period (including dividends).
| MOBOTIX share | 293,7% | -3,2% |
|---|---|---|
| DAX | -19,7% | 16,6% |
| TecDAX | -26,1% | 12,2% |
| GEX | -57,5% | -13,7% |
*Reporting Date October 10, 2007
MOBOTIX AG pursues a growth-oriented dividend policy that corresponds to corporate growth and the respective business situation. In the Annual General Meeting held for the last full fiscal year 2010/11 on October 21, 2011, a dividend of EUR 1.50 per share (prior year: EUR 1.01 per share) was approved and subsequently paid to the shareholders.
The capital increase including a subsequent share split according to a ratio of 1:3 adopted in the Annual General Meeting on October 21, 2011 was fully implemented in November. The Management Board assumes that this measure will lead to an additional increase in trading volume and accordingly an increase in the share's attractiveness.
At the end of the first nine months 2011/12, MOBOTIX AG continues to have a very stable shareholder base that supports the long-term and sustained development of the Company. The shareholder structure of MOBOTIX AG is as follows:
Dr. Ralf Hinkel Holding GmbH holds 50.22% of the shares, Andreas Putsch holds 9.91% of the shares and Klaus Borchers 5.00%. A
share buyback program was started in July 2010. As of September 30, 2011 MOBOTIX AG had acquired 98,259 treasury shares (after the share split) as part of the share buyback program. The free float as defined by the Deutsche Börse is 34.13%.
Since MOBOTIX AG's IPO, the Management Board has regularly engaged in dialogue with investors, analysts and financial journalists. Special emphasis is placed on the continuous flow of information. The Company fulfills the follow-up obligations of the Prime Standard segment of the Deutsche Börse AG.
In the past quarters, MOBOTIX AG continued to increase its Investor Relations activities and presented itself to interested analysts and investors at various events such as German Equity Forum in Frankfurt, the European Small Mid Cap Conference of the Bank of America Merrill Lynch in June 2011 in London as well as further roadshows in Paris, Stockholm, Frankfurt and Zurich.
On December 20, 2011, MOBOTIX Annual General Meeting for the past short fiscal year was held at the Company's headquarters. With approximately 47 shareholders, 71.30% of the authorized capital was represented. The constructive and interesting questions, and the extraordinarily high agreement of over 99% for all proposals on the agenda clearly reflected the shareholders' confidence in the Company.
In the fiscal year 2010/11, the Bank of America Merrill Lynch has taken up coverage of the MOBOTIX share. In the past six months, the Berenberg Bank was also added. Besides both of the new banks already mentional, analysts of the DZ Bank and the Equinet AG as well as Hauck & Aufhäuser and GBC AG have also taken up continuous coverage of the share.
Prices (Xetra) in fiscal year 2011/12:
| High (February 24, 2012) | 26.89 € |
|---|---|
| Low (June 14, 2011) | 17.60 € |
| Closing price* | 19.00 € |
| Market capitalization* | 252.2 Mio. € |
| *as of reporting date June 30, 2012 |
| WKN | 521830 |
|---|---|
| ISIN | DE0005218309 |
| Ticker symbol | MBQ |
| Bloomberg | MBQ:GR |
| Reuters Instrument Code | MBQGn.DE |
| Stock exchange segment | Regulated Market (Prime Standard) |
| Prime segment | Technology |
| Industry Group | Electronic Components & Hardware |
| Stock exchange | Frankfurt |
| Share capital | 13,271,442 EUR |
| No. of shares outstanding | 13,271,442 |
| Index categories | GEX, CDAX, Technology All Share, Prime All Share |
| Analyst coverage | DZ Bank, Equinet AG, Hauck & Aufhäuser, GBC AG, Bank of America Merrill Lynch |
MOBOTIX AG is 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), D14 (DualDome Camera), D24 (MonoDome Camera), V12 (Vandalism Camera) and Q24 (Hemispheric 360° Camera), as well as the product line S14 (FlexMount Camera in Mono and Dual versions) which
has been available since June 2012. Moreover, the digital door station T24 with a variety of accessories was launched on the market in the last fiscal year. In addition to its network cameras and door station, MOBOTIX also offers the MxControlCenter, a complete video management solution as a control center
software that is able to integrate cameras from other manufacturers, as well as MxEasy – a video software solution for the consumer and semiprofessional segment. The MOBOTIX video management solutions are offered free of charge. In addition, various accessories are available in the Company's product range.
MOBOTIX operates in the video security systems market. This market is generally referred to as the CCTV market (Closed Circuit Television market). Today's market for video security systems includes both analog video security systems and network camera systems, as well as video management software and accessories. Combinations of analog and network camera systems are known as hybrid systems. The relevant market segment for MOBOTIX in this respect is network cameras.
In a current study made by the market research firm IMS Research in June 2012, the authors presume that global sales in the market for network cameras will grow by an annual average of approximately 27.0% from 2011 to 2016. The growth potential is estimated to be comparatively high in all global market segments (Americas, Asia, EMEA) and is not limited to a few regional markets.
The competitive market is comparatively homogeneous worldwide – approximately 80% of the large major competitors are very similar in all global market segments.
We expect the market to perform very well in the short term, with steady growth at a comparatively high level. In this connection, the repercussions of the debt crisis can be seen at the present time in several market segments, particularly in Europe, which may temporarily result in lower growth rates in some local markets. It is important to note here that for the medium term, the dependence on the overall economic development will be slightly lower in the market segments.
Hemispheric IP Video Door Station in silver. Additional colors (white, dark gray, amber and black) are available.
Note: Because of the fiscal year changeover and the three-month short fiscal year in the last year, the year-on-year comparison of the income statement, of the statement of comprehensive income and of the statement of cash flows is not only calendar-based but also quarterly-based. This means that in addition to the calendar-based comparison with the prior year, the third quarter ended on June 30, 2012 (April 1 to June 30, 2012) of the current fiscal year (October 1, 2011 to September 30, 2012) is additionally compared with the third quarter (January 1 to March 31, 2011) of the past complete fiscal year (July 1, 2010 to June 30, 2011). In addition, the 9-month period (October 1, 2011 to June 30, 2012) ended on June 30, 2012 of the current fiscal year (October 1, 2011 to September 30, 2012) is compared with the first three quarters (July 1, 2010 to March 31, 2011) of the last complete fiscal year (July 1, 2010 to June 30, 2011). The following presentation does not only include the quarterly-based but also the calendarbased (marked "cl.") figures.
It must be taken into account that due to the changeover of the fiscal year the calendarbased prior-year period includes a year-end quarter with typical market-related year-end revenue effects, which were even further intensified due to the relocation of the production in the subsequent quarter (August 2011).
In the first nine months of fiscal year 2011/12, MOBOTIX Group revenue grew by 16.2% to EUR 59.7 million (prior year EUR 51.4 million, cl. EUR 58.1 million). The weak rates of growth seen for several months in nearly all European countries have continued to persist, leading to rising market uncertainty. The development of sales revenue considering the overall economic conditions in particular was within the expectations of the Management Board.
In the first nine months the revenue growth was achieved through increased sales of both dome cameras and fixed cameras. Sales revenues for fixed cameras rose from EUR 24.9 million to EUR 28.6 million (prior year +14.8%, cl. +3.6%); sales revenues for dome cameras grew to EUR 28.3 million (prior year +18.1%, cl. +2.3%). The export ratio in the first nine months was 74.0%, compared to 75.3% in the prior-year period (cl. 77.1%). In Germany, revenues increased from EUR 12.7 million to EUR 15.5 million (prior year 21.8%, cl. 16.4%), while revenues in the rest of Europe (without Germany) also increased by
2.6% (cl. -8.7%) to EUR 21.7 million. Revenues in the rest of the world rose from EUR 17.6 million to EUR 22.6 million, representing an increase of 28.4% (cl. 6.9%). The prices of products were neither increased nor lowered.
Total operating performance (sales revenue, increase/decrease in finished goods and work in progress and other own work capitalized) was EUR 61.8 million in the first nine months of 2011/12 (prior year EUR 54.2 million, cl. EUR 60.3 million).
At 26.8% (prior year 26.7%, cl. 26.1%), the material usage ratio (ratio of cost of materials to total operating performance) was slightly higher than the prior-year figure.
The personnel usage ratio (staff costs to total output) increased from 25.4% (cl. 25.5%) to 27.1% with a further build-up of the workforce. New hires were made in sales and development in particular. Compared to the same period of the prior year, personnel expenses rose by EUR 3.0 million (cl. EUR 1.3 million).
Other operating expenses rose by EUR 2.0 million (cl. EUR 1.2 million, prior year 17.0%, cl. 9.7%) to EUR 13.5 million (prior year EUR 11.5 million, cl. EUR 12.3 million). They include revenue-dependent distribution expenses such
as shipping and packaging costs, advertising and marketing expenses, travel and entertainment expenses as well as expenses for temporary staff.
Earnings before interest, tax, depreciation and amortization (EBITDA) (25.2% of total operating performance) amounted to EUR 15.6 million (prior year EUR 14.8 million, cl. EUR 17.2 million). Earnings before interest and taxes (EBIT) (20.9% of total operating performance) amounted to EUR 12.9 million (prior year EUR 12.7 million, cl. EUR 15.0 million).
The profit before tax of EUR 12.5 million (prior year EUR 12.3 million, cl. EUR 14.7 million) was 2.0% (cl. -14.4%) above the figure of the prior year period.
The first nine months of 2011/12 ended with net income of EUR 9.1 million (prior year EUR 8.7 million, cl. EUR 10.3. million, return on sales 15.2%).
The subsidiary MOBOTIX CORP reported with a revenue increase of 24.6% (cl. 8.9%) a positive net income for the period of USD 0.5 million (prior year net loss of USD 0.5 million, cl. net loss of USD 0.8 million) compared to the prior year period. This figure includes currency translation gains of USD 0.3 million (prior year:
Revenue Rest Of World € 22.6m (+28.4%)
currency translation loss of USD 0.3 million, cl. USD 0.2 million).
Development costs in the amount of EUR 0.8 million (prior year EUR 0.9 million, cl. EUR 1.0 million) were capitalized in the first nine months of fiscal year 2011/12. Property, plant and equipment increased by EUR 0.6 million, (2.8%), to EUR 23.1 million. Capital expenditure on property, plant and equipment of EUR 2.7 million was in contrast to depreciation in the amount of EUR 2.0 million. The investments related primarily to subsequent acquisition costs for the construction of the new production hall at the Langmeil site and investments in technical systems as well as operating and office equipment. Investments in technical systems consist largely of investments in injection molding tools and IT equipment.
Compared to the beginning of the fiscal year, inventories increased by EUR 0.5 million (3.2%) to EUR 15.4 million to ensure the availability of product deliveries during the company closure in July/August 2012.
Due to the higher business volume in June 2012, trade receivables increased to EUR 8.7 million as of June 30, 2012, an increase of EUR 2.6 million compared to the balance sheet date as of September 30, 2011.
Other assets amounted to EUR 4.9 million (September 30, 2011: EUR 5.5 million) and comprised mainly gold reserves at a carrying amount of EUR 3.6 million, tax refunds of EUR 0.6 million and advance payments of EUR 0.2 million.
Cash and cash equivalents at EUR 7.0 million were unchanged from September 30, 2011 (September 30, 2011: EUR 7.0 million).
On the equity and liabilities side, equity rose by EUR 1.9 million to EUR 40.9 million despite the payment of the dividend. The equityto-assets ratio was reduced slightly by EUR 3.3 million from 66.1% to 65.6% due to the increase in total assets. Since September 30, 2011, treasury shares increased by 28,212 shares to 98,259 treasury shares. Due to tax expenses for the first nine months of fiscal year 2011/12, tax provisions rose by EUR 1.1 million to EUR 3.4 million. The decrease in liabilities to banks resulted in particular from the planned repayment of loans totaling EUR 0.8 million. At EUR 4.2 million, trade payables increased by EUR 0.5 million compared to September 30, 2011.
Other liabilities increased by EUR 0.5 million to EUR 3.0 million compared to September 30, 2011.
Based upon the developments described above, the total assets of the MOBOTIX Group increased by EUR 3.3 million to EUR 62.4 million as of June 30, 2012 compared to September 30, 2011.
Cash flows from operating activities of the MOBOTIX Group amounted to EUR 11.6 million in the first nine months of 2011/12 (prior year EUR 9.3 milion, cl. EUR 10.6 million). At EUR 3.3 million (prior year EUR 4.9 million, cl. EUR 5.1 million), net cash used by investing activities is primarily due to investments in property, plant and equipment. Cash paid for capital expenditure on property, plant and equipment amounted to EUR 2.7 million. The negative cash flow from financing activities of EUR 8.3 million resulted in particular from the payment of a dividend of EUR 6.6 million for fiscal year 2010/11. In the first nine months of the prior year, the negative cash flow from financing activities amounted to EUR 4.8 million (cl. EUR 7.7 million) and was due to the distribution of a dividend of EUR 4.4 million for fiscal year 2009/10.
The various cash flows generated during the reporting period resulted in cash and cash equivalents of EUR 7.0 million as of June 30, 2012. The Company's solvency was guaranteed at all times in the first nine months of fiscal year 2011/12. Due to the Company's creditworthiness, a number of financing options are available.
Non-current liabilities decreased by EUR 0.7 million to EUR 9.5 million compared to September 30, 2011. Non-current liabilities as a share of total assets of the MOBOTIX Group decreased from 17.2% to 15.2%. As of the reporting date, current liabilities represented 19.2% of total assets, compared to 16.7% as of September 30, 2011.
The development of the Group's net assets, financial position and results of operations in the first nine months of fiscal year 2011/12 reflects the expectations of the Management Board for the business development in this period, considering the current global economic developments, in particular the increased uncertainty in the markets associated with the European debt crisis.
Development activities were also further expanded during the first nine months of fiscal year 2011/12. As of June 30, 2012, the MOBOTIX Group had 84 employees (by headcount) in its Development department. As in previous years, the primary development focus was on the creation of new hardware and software products as well as further optimization of the product functionality.
Most development activity is carried out in-house. Development activities are outsourced on a very small scale only in the area of tool design and PC board layout.
One focus in the last nine months has been the development of accessories for the IP-based door station T24 as well as the development of the new camera line S14, which was launched on the market at the end of June.
In the last nine months, we also laid the foundation for additional product development innovations, which are expected to be launched on the market in fiscal year 2011/12.
52 employees were hired in the first nine months of fiscal year 2011/12. As of March 31, 2012, the MOBOTIX Group had 328 employees, compared to 292 employees (excluding trainees and temporary staff, including members of the Management Board; by headcount) at the beginning of the fiscal year. Fiscal year 2011/12 will see additional staff increases, particularly in marketing, sales and development.
D14D DualDome original image: Tele lens (left) and wide angle lens (right) – at the same time in one image
356 (Head count incl. management board, trainees and temps)
During the period from October 1, 2011 to June 30, 2012, the following reportable purchases or sales of shares were effected by members of the Management Board or Supervisory Board.
No events of any significance occurred after the end of the first nine months of fiscal year 2011/12.
| Date of | Type of | Stock | Number of | ||||
|---|---|---|---|---|---|---|---|
| Name | Function | transaction | transaction | exchange | shares | € Price | € Total volume |
| Prof. Dr. Gerten | Supervisory Board |
* | Buy | Xetra | 2,400** | 19.77 | 47,440 |
| Dr. Ralf Hinkel *** | CEO | May 3, 2012 | Buy | Xetra | 10.000 | 20,90 | 208.997 |
* 4 partial transactions on November 14, 15 and 16, 2011
** Number of shares after share split
*** Indirectly via Dr. Ralf Hinkel Holding GmbH
The loan granted to Dr. Ralf Hinkel in the amount of EUR 230 thousand was repaid in March 2012. The loan bore interest at a rate of 3.5 % per annum.
No other significant changes in transactions with related parties occurred during the period under review.
Thereof In Development 84
The MOBOTIX Group has implemented an adequate risk management system to ensure that risks are detected and mitigated at an early stage. The Group's risk management system is intended to identify, monitor, and control any risks that occur. In addition to risks that could jeopardize the Company's continued existence as a going concern, the system also records activities, events and developments that could significantly affect the future performance of the Company's business. As part of risk management, operational opportunities and risks are identified and managed over a period of one to three years. For strategic opportunities and risks, a correspondingly longer forecasting horizon is used.
Precautions are taken against typical business risks that could have a material influence on the Group's results of operations, net assets or financial position.
Based upon the information currently available, the MOBOTIX Group is not at present faced with any significant specific risks that, in and of themselves, would be likely to jeopardize the continued existence of the MOBOTIX Group.
The Company continues to refine its internal structures in line with its growth and to adapt them to the scale of its business. The Company plans additional measures to strengthen and improve quality management, the internal control system, and risk management.
Please refer to the Annual Report for the short fiscal year 2011 for details of any material risks.
The Management Board deems the procurement market risks to be basically within the customary range for the industry. The strained situation on the procurement market observable in recent months has not become worse. The Company is basically controlling the threat of long supply times by increasing inventory management on components and finished goods. At present, no specific impact
on product availability is anticipated, although this possibility cannot be ruled out.
A short-term failure of critical suppliers, e. g. for processors, which could lead to significant disruptions in production, is considered unlikely.
The number of patent disputes has increased noticeably in the recent quarters in the video security industry as well. It cannot be ruled out that MOBOTIX may also be drawn into patent infringement proceedings entailing a noticeable financial impact.
It is currently not possible to estimate how negatively the current debt crisis in Europe and the resulting upheavals in the capital markets will impact revenue and earnings growth in the long term. If a global or widespread recession should result from these developments, this would of course have noticeable impacts on the relevant market environment of MOBOTIX. It should be noted that repercussions in the form of delays in the implementation of projects as well as weak demand can be seen in several European countries in particular.
During the period under review, our risk situation and risk management system did not deviate notably from that described in the Annual Report for the short fiscal year 2011. The Company sees no risks at the present time or in the future that would endanger the Company's continued existence or would have a material influence on its development. Technological innovation and further expansion of the distribution network are very important for the Group's sustained success.
The high growth rates predicted for the medium and long term create the foundation for the Company's successful development. In addition to a rising awareness of security issues, market growth will be driven by the switch from analog to digital technology. If this switch should happen sooner than expected, additional opportunities could arise for MOBOTIX. Factors that could lead to an acceleration include political initiatives such as
the French video law that would improve the quality of security systems in the public sector.
The Management Board assumes that technological market drivers such as increasing image resolution in video systems and more complex security installations will favor the advantages of the decentralized technology approach. This has become particularly evident through the introduction of hemispheric technology (Q24). This would strengthen the MOBOTIX Group's competitive position and put pressure on the competition.
Experience shows that an accelerated macroeconomic recovery experience as well as a sustained macroeconomic downturn, of course, can also lead to supply bottlenecks on the procurement market and cause production bottlenecks. Such risks are counteracted in particular by increased warehousing of critical components and finished products.
The Management Board is confident that through the increased publicity, new opportunities will arise to acquire new employees, sales partners and customers.
MOBOTIX is currently represented by partners throughout the world. A key factor for unleashing future growth potential involves pursuing a targeted expansion of the partner network. The successful expansion of the sales network holds the key to significant growth opportunities. The outstanding global market position – particularly in the niche markets of high-resolution network cameras – provides the conditions for ongoing and thriving growth.
In terms of regions, the Management Board sees key growth areas for the coming months in North America, South America and Asia.
The introduction of the hemispheric camera technology to the market has so far been very successful. The fact that the Company's
key competitors are still unable to offer any comparable products is an indication of MOBOTIX AG's innovative strength and will enable the Company to occupy a unique position in this product field over the medium term. Moreover, MOBOTIX plans to use additional product innovations in the area of video surveillance systems in the coming months to reinforce its competitive position.
Considerable future potential is seen for the new Access Control & Communication product field, particularly the T24 digital Door Station. The systems currently available on the market are based on a 4/5-wire or 2-wire cabling. Digital systems based on IP networks represent a forward-looking innovation and a market novelty. The Company is accordingly aiming to be the technology leader in the door station field in the short term.
The products of the new Access Control & Communications product segment will enable direct communication from the front door to the smart phone, regardless of where the user is located at that moment. This IP-based technology, which was developed in-house, is far ahead of current systems, and in addition will make it possible to integrate door communication, video monitoring, alarm systems, access control and home control from a single source via iPhone and iPad. Another significant innovation is efficient access via mobile phone networks with low data bandwidth.
Some components, such as display terminal and the App, have not yet gone into production, so they can be used currently only via video-IP phones and not the smartphone. In April, both new key components have already been very successfully introduced at the Light+Building trade fair. The first systems are already being installed in large apartment buildings.
The new S14 camera line with its miniature installation modules was launched at the end of June and it promises new market shares in the area of discreet monitoring. Moreover, the S14 is a camera system that has been specially optimized for use in the mobile sector for the transport market, and in this way expands the areas of application of the MOBOTIX camera systems.
The sales organization was optimized for further growth in the last twelve months. The restructuring had a temporary influence on revenue growth in the last quarters. In Germany, a turnaround can already be seen. Revenue in the first three quarters of the fiscal year increased by 22% compared to the first three quarters of fiscal year 2010/11.
In light of the debt and financial crisis, noticeable restraint can be seen in the Mediterranean countries of Europe. The uncertainty in these markets makes a forecast very difficult. The same holds true for the introduction phase of the new product series. On the other hand, the weak euro contributes to expansion in the American and Asian markets and will bring further growth.
For the current fiscal year, we expect revenue growth of approximately 3% to 10% with an EBIT margin of 19% to 22% compared to the forecast made in the past consolidated management report. For the following fiscal year, we expect that the restructured sales structure and the new product segment "Access Control & Communication" as well as the new S14 camera line will bring continued robust growth in revenue and EBIT.
The above forward-looking statements are of a purely predictive nature. The actual results may thus deviate substantially from these expectations.
Winnweiler-Langmeil, July 19, 2012
The Management Board
Dr. Ralf Hinkel • CEO MOBOTIX AG
Lutz Coelen • CFO MOBOTIX AG
Dr. Magnus Ekerot • CSO MOBOTIX AG
Dr. Oliver Gabel • CTO MOBOTIX AG
| 9 Months | 3rd Quarter | |||||
|---|---|---|---|---|---|---|
| EUR '000s see notes |
Oct. 1, 2011- June 30, 2012 |
Oct. 1, 2010- June 30, 2011 |
Additional information July 1, 2010- Mar. 31, 2011 |
Apr. 1, 2012- June 30, 2012 |
Apr. 1, 2011- June 30, 2011 |
Additional information Jan. 1, 2011- Mar. 31, 2011 |
| Revenue (1) |
59,709 | 58,126 | 51,399 | 19,334 | 21,792 | 16,776 |
| Increase in finished goods and work in progress | 1,231 | 1,036 | 1,668 | 1,033 | 454 | 592 |
| Other own work capitalized (2) |
876 | 1,182 | 1,103 | 401 | 329 | 492 |
| Total output | 61,816 | 60,345 | 54,169 | 20,767 | 22,576 | 17,860 |
| Cost of materials (3) |
-16,586 | -15,742 | -14,441 | -6,380 | -6,101 | -5,087 |
| Gross profit | 45,230 | 44,603 | 39,728 | 14,387 | 16,475 | 12,773 |
| Staff costs (4) |
-16,729 | -15,390 | -13,775 | -5,731 | -5,500 | -4,656 |
| Depreciation and amortization | -2,691 | -2,215 | -2,128 | -931 | -746 | -736 |
| Other operating income | 580 | 297 | 351 | 283 | 120 | 90 |
| Other operating expenses (5) |
-13,481 | -12,288 | -11,521 | -4,605 | -3,829 | -3,860 |
| Operating profit | 12,909 | 15,008 | 12,656 | 3,404 | 6,520 | 3,611 |
| Other interest and similar income | 24 | 49 | 49 | 9 | 18 | 15 |
| Interest expense and similar expenses | -390 | -397 | -403 | -126 | -127 | -121 |
| Profit before tax | 12,542 | 14,660 | 12,302 | 3,287 | 6,411 | 3,505 |
| Income taxes (6) |
-3,477 | -4,372 | -3,631 | -920 | -1,884 | -1,076 |
| Profit for the period | 9,066 | 10,288 | 8,671 | 2,367 | 4,527 | 2,430 |
| Profit attributable to shareholders of MOBOTIX AG |
9,066 | 10,288 | 8,671 | 2,367 | 4,527 | 2,430 |
| Earnings per share (diluted/basic) in EUR* | 0.69 | 0.78 | 0.66 | 0.18 | 0.34 | 0.18 |
* taking into account the share split
| Consolidated Statement of Comprehensive Income |
Oct. 1, 2011- June 30, 2012 |
Oct. 1, 2010- June 30, 2011 |
Additional information July 1, 2010- Mar. 31, 2011 |
Apr. 1, 2012- June 30, 2012 |
Apr. 1, 2011- June 30, 2011 |
Additional information Jan. 1, 2011- Mar. 31, 2011 |
|---|---|---|---|---|---|---|
| Profit for the period | 9,066 | 10,288 | 8,671 | 2,367 | 4,527 | 2,430 |
| Difference resulting from currency translation | -7 | 18 | -25 | -3 | 6 | 1 |
| Accumulated other comprehensive income (after tax) |
-7 | 18 | -25 | -3 | 6 | 1 |
| Total comprehensive income for the period | 9,059 | 10,306 | 8,646 | 2,364 | 4,533 | 2,431 |
| Profit attributable to shareholders of MOBOTIX AG |
9,059 | 10,306 | 8,646 | 2,364 | 4,533 | 2,431 |
| EUR '000s | see notes | June 30, 2012 | Sept. 30, 2011 |
|---|---|---|---|
| Intangible assets | (7) | 2,310 | 2,141 |
| Property, plant and equipment | (8) | 23,112 | 22,481 |
| Prepaid expenses | 61 | 74 | |
| Deferred tax assets | 230 | 179 | |
| Non-current assets | 25,713 | 24,876 | |
| Inventories | (9) | 15,446 | 14,967 |
| Trade receivables | 8,692 | 6,136 | |
| Other assets | 4,852 | 5,520 | |
| Cash and cash equivalents | 7,008 | 6,994 | |
| Prepaid expenses | 657 | 533 | |
| Current assets | 36,654 | 34,151 | |
| ASSETS | 62,367 | 59,027 | |
| Subscribed capital | 13,271 | 4,424 | |
| Capital reserves | 818 | 9,665 | |
| Treasury shares | -1,330 | -778 | |
| Accumulated other comprehensive income | 29 | 36 | |
| Profit or loss carried forward | 19,058 | 23,892 | |
| Profit for the period | 9,066 | 1,767 | |
| Equity | (10) | 40,912 | 39,006 |
| Liabilities to banks | (13) | 8,740 | 9,457 |
| Deferred tax liabilities | 743 | 722 | |
| Non-current liabilities | 9,483 | 10,179 | |
| Tax provisions | (11) | 3,371 | 2,314 |
| Other provisions | (12) | 271 | 253 |
| Liabilities to banks | (13) | 1,164 | 1,164 |
| Trade payables | 4,159 | 3,681 | |
| Other liabilities | (14) | 3,006 | 2,429 |
| Current liabilities | 11,971 | 9,842 | |
| EQUITY AND LIABILITIES | 62,367 | 59,027 |
Total Assets EUR 62.4m (+5.7%)
| Additional information |
||||
|---|---|---|---|---|
| EUR '000s | Oct. 1, 2011- June 30, 2012 |
Oct. 1, 2010- June 30, 2011 |
July 1, 2010- Mar. 31, 2011 |
|
| Profit before tax for the period | 12,542 | 14,660 | 12,302 | |
| + | Net interest income or expense | 366 | 348 | 354 |
| + | Depreciation and amortization of property, plant and equipment, and intangible assets |
2,691 | 2,214 | 2,128 |
| + | Interest received | 23 | 57 | 49 |
| + | Increase in other provisons | 18 | 63 | 21 |
| - | Profit on disposal of non-current assets | -15 | 0 | 0 |
| + | Other non-cash expenses | 14 | 14 | 14 |
| Operating profit before changes in working capital | 15,639 | 17,356 | 14,868 | |
| - | Increase in inventories, trade receivables and other assets not attributable to investing or financing activities |
-2,727 | -6,544 | -5,044 |
| + | Increase of trade payables and other liabilities not attributable to investing or financing activities |
1,115 | 1,933 | 681 |
| Cash flow from operating activities before tax | 14,027 | 12,745 | 10,506 | |
| - | Income tax paid | -2,450 | -2,114 | -1,197 |
| Cash flow from operating activities | 11,577 | 10,632 | 9,308 | |
| - | Cash paid for purchases of property, plant and equipment | -2,697 | -5,260 | -5,008 |
| - | Cash paid for purchases of intangible assets | -868 | -1,103 | -1,019 |
| + | Cash received from subsidies | 0 | 775 | 620 |
| + | Proceeds from sales of current available-for-sale financial assets | 230 | 476 | 476 |
| + | Cash received from disposals of property, plant and equipment | 27 | 0 | 0 |
| Cash flow from investing activities | -3,308 | -5,113 | -4,931 | |
| - | Dividends paid | -6,601 | -4,424 | -4,424 |
| - | Purchase of treasury shares | -552 | -333 | -778 |
| - | Cash paid for borrowings | -850 | -2,700 | -2,709 |
| + | Cash received from borrowings | 0 | 0 | 3,360 |
| - | Interest paid | -257 | -272 | -281 |
| Cash flow from financing activities | -8,259 | -7,729 | -4,832 | |
| Net change in cash and cash equivalents | 9 | -2,210 | -455 | |
| Effect of exchange rate and other changes on cash and cash equivalents | 5 | -5 | -12 | |
| Cash and cash equivalents at the beginning of the reporting period | 6,994 | 9,624 | 7,312 | |
| Cash and cash equivalents at the end of the reporting period | 7,008 | 7,409 | 6,846 |
| EUR '000s | Subscribed capital |
Capital reserves |
Treasury shares |
Accumulated other comprehensive income |
Profit or loss carried forward |
Result for the period |
Total |
|---|---|---|---|---|---|---|---|
| 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 treasury shares | -778 | -778 | |||||
| Currency translation | -25 | -25 | |||||
| Profit for the period | 8,671 | 8,671 | |||||
| Balance as of March 31, 2011 | 4,424 | 9,665 | -778 | 51 | 10,694 | 8,671 | 32,727 |
| Currency translation | 6 | 6 | |||||
| Profit for the period | 4,527 | 4,527 | |||||
| Balance as of June 30, 2011 | 4,424 | 9,665 | -778 | 57 | 10,694 | 13,198 | 37,260 |
| Balance as of July 1, 2011 | 4,424 | 9,665 | -778 | 57 | 23,892 | 0 | 37,260 |
| Currency translation | -21 | -21 | |||||
| Profit for the year | 1,767 | 1,767 | |||||
| Balance as of Sep. 30, 2011 | 4,424 | 9,665 | -778 | 36 | 23,892 | 1,767 | 39,006 |
| Balance as of Oct. 1, 2011 | 4,424 | 9,665 | -778 | 36 | 25,659 | 0 | 39,006 |
| Dividend payment | -6,601 | -6,601 | |||||
| Capital increase from reserves | 8,847 | -8,847 | 0 | ||||
| Currency translation | -7 | -7 | |||||
| Purchase of treasury shares | -552 | -552 | |||||
| Profit for the period | 9,066 | 9,066 | |||||
| Balance as of June 30, 2012 | 13,271 | 818 | -1,330 | 29 | 19,058 | 9,066 | 40,912 |
For a more detailed explanation concerning changes in equity, please refer to section (10) of the Notes to the Condensed Consolidated Financial Statements.
Equity-To-Assets Ratio 65.6%
MOBOTIX AG was established on June 21, 1999. Since September 30, 2009, the Company's registered office has been in Winnweiler-Langmeil (Kaiserstrasse, 67722 Winnweiler-Langmeil).
MOBOTIX AG is a European technology leader and system provider in the production of highresolution digital, network-based video security systems, video management software and systems accessories. The core technology of MOBOTIX AG is its proprietary, internally manufactured, fully digital network cameras.
MOBOTIX products are sold worldwide primarily via distributors, qualified systems integrators and specialist retailers.
Pursuant to the resolution of the Annual General Meeting of MOBOTIX AG of October 28, 2010, the fiscal year of MOBOTIX AG was changed effective October 1, 2011, and from that date will begin on October 1 of one year and end on September 30 of the following year. A short fiscal year was created for the period from July 1, 2011 to September 30, 2011.
The consolidated interim financial statements of MOBOTIX AG as of June 30, 2012 have been prepared in accordance with all International Financial Reporting Standards (IFRSs), International Accounting Standards (IASs), and interpretations of the International Financial Reporting Interpretations Committee and the Standing Interpretations Committee (IFRIC / SIC) that have been adopted by the European Union and are applicable to the fiscal year 2011/12.
The accounting policies applied in the consolidated interim financial statements as of June 30, 2012, which have been prepared on the basis of IAS 34 "Interim Financial Reporting," are essentially the same as those used in the consolidated financial statements, for the short fiscal year 2011.
The condensed consolidated interim financial statements for the period under review have been reviewed by KPMG AG, Wirtschaftsprüfungsgesellschaft. This interim report is also consistent with German accounting standard No. 16 on interim financial reporting (GAS 16) issued by the German Accounting Standards Committee (GASC).
For further information on the accounting policies applied, please refer to the consolidated financial statements for the year ended September 30, 2011. The information shown in the column "Additional information" is to be read together with the consolidated financial statements of MOBOTIX AG as of June 30, 2011.
Note: Because of the fiscal year changeover and the three-month short fiscal year in the last year, the year-on-year comparison of the income statement, of the statement of comprehensive income and of the statement of cash flows is not only calendar-based but also quarterly-based. This means that in addition to the calendar-based comparison with the prior year, the third quarter ended on June 30, 2012 (April 1 to June 30, 2012) of the current fiscal year (October 1, 2011 to September 30, 2012) is additionally compared with the third quarter (January 1 to March 31, 2011) of the past complete fiscal year (July 1, 2010 to June 30, 2011). In addition, the 9-month period (October 1, 2011 to June 30, 2012) ended on June 30, 2012 of the current fiscal year (October 1, 2011 to September 30, 2012) is compared with the first three quarters (July 1, 2010 to March 31, 2011) of the last complete fiscal year (July 1, 2010 to June
30, 2011). The following presentation does not only include the quarterly-based but also the calendar-based (marked "cl.") figures.
Unless stated otherwise, all figures in the condensed consolidated financial statements are stated in thousands of Euro (EUR '000s). The translation of Euro into thousands of Euro may give rise to rounding differences of plus or minus one unit (EUR '000s or percent).
The basis of consolidation used by MOBOTIX AG for the nine-month period ended June 30, 2012 is the same as that used in the consolidated financial statements for the fiscal year ended September 30, 2011 and in the period of the prior year. MOBOTIX CORP has been retroactively included in the consolidated financial statements of MOBOTIX AG from the date in 2003 when MOBOTIX CORP was established.
MOBOTIX Ltd., Nottingham, United Kingdom has not been included in the consolidated financial statements as it is not material to the consolidated financial statements of MOBOTIX AG. MOBOTIX Ltd. is currently not operating.
A breakdown of revenue by region and product line is presented as part of the segment information.
Other own work capitalized in the first nine months of fiscal year 2011/12 refers to development costs capitalized in the amount of EUR 782 thousand (prior year qu. EUR 927 thousand, cl. EUR 1,007 thousand).
| EUR '000s | Oct. 1, 11- June 30, 12 |
Oct. 1, 10- June 30, 11 |
Additional information July 1, 2010- Mar. 31, 2011 |
|---|---|---|---|
| Cost of raw materials, supply and merchandise |
16,357 | 15,611 | 14,321 |
| Cost of purchased services |
229 | 131 | 119 |
| Total | 16,586 | 15,742 | 14,441 |
Cost of materials comprises any materials used for the production of cameras. This item also comprises to a small extent expenses for purchased services, which include expenses for outsourced manufacturing activities.
| EUR '000s | Oct. 1, 11- June 30, 12 |
Oct. 1, 10- June 30, 11 |
Additional information July 1, 2010- Mar. 31, 2011 |
|---|---|---|---|
| Wages and salaries |
14,644 | 13,594 | 12,153 |
| Social security | 2,085 | 1,796 | 1,622 |
| Total | 16,729 | 15,390 | 13,775 |
The rise in staff costs reflects in particular the increase in number of the workforce. In the first nine months of fiscal year 2011/12, the Company employed an average of 293 persons in full-time equivalent positions (prior year qu. 245, cl. 254) (excluding trainees and temporary staff, including 4 Management Board members). As of the reporting date, the Company employed 328 (prior year: 277) persons (excluding trainees and temporary staff, including 4 Management Board members; by headcount).
At EUR 13,481 thousand (prior year qu. EUR 11,521 thousand, cl. EUR 12,288 thousand), other operating expenses are by EUR 1,960 thousand above the level of the prior year and include all expenses that cannot be assigned to other items. They include in particular the cost of marketing, trade fairs and exhibitions, shipping and packaging, legal and consulting fees, as well as premises and maintenance.
Income taxes can be broken down as follows:
| EUR '000s | Oct. 1, 11- June 30, 12 |
Oct. 1, 10- June 30, 11 |
Additional information July 1, 2010- Mar. 31, 2011 |
|---|---|---|---|
| Current taxes | 3,507 | 4,253 | 3,475 |
| Deferred taxes | -30 | 119 | 156 |
| Total | 3,477 | 4,372 | 3,631 |
The tax rate applicable as of June 30, 2012 was 27.7% (prior year qu. 29.5%, cl. 29.8%).
The cost of developing camera housings, electronics, and software projects was capitalized at cost in the amount of EUR 782 thousand in the first nine months of 2011/12 (prior year qu. EUR 927 thousand, cl. EUR 1,007 thousand). At EUR 4,123 thousand, the development costs capitalized as of June 30, 2012 (September 30, 2011: EUR 3,342 thousand) comprise all costs directly attributable to the development process. The accumulated amortization and impairment amounted to EUR 1,935 thousand as of June 30, 2012 (September 30, 2011: EUR 1,305 thousand). The development projects are amortized on a uniform, straight-line basis over a period of three years following completion.
Additions to property, plant and equipment of EUR 2,688 thousand primarily relate to subsequent aquisition costs for the construction of the new production hall at the Langmeil location, costs for tools as well as operating and office equipment.
The HiRes Video Company
Inventories are composed of the following:
| EUR '000s | June 30, 2012 | Sep. 30, 2011 |
|---|---|---|
| Raw materials and supplies |
7,119 | 7,872 |
| Work in progress | 4,114 | 3,847 |
| Finished goods | 4,213 | 3,248 |
| Total | 15,446 | 14,967 |
Inventories were increased for the purpose of ensuring supply capability in the upcoming vacation close-down in July/August 2012.
Please refer to the statement of changes in equity for an overview of the development of equity.
By resolution of the Annual General Meeting of October 21, 2011, the Company's share capital was increased by EUR 8,847,628.00 from EUR 4,423,814.00 to EUR 13,271,442.00 pursuant to the provisions of the German Stock Corporation Act concerning the capital increase from reserves (Sections 207 et seq. AktG) by
conversion of an amount of EUR 8,847,628.00 from the capital reserve into share capital. Pursuant to Section 207 (2) Sentence 2 AktG, the capital increase was effected without the issue of new shares in such a way that the share capital (as explained above) was increased, and as a result, the proportional amount of the share capital attributable to the individual share was increased to EUR 3.00.
The total share capital of the Company, which was increased in this manner, in the amount of EUR 13,271,442.00 divided into 4,423,814 bearer shares, will be redivided according to a ratio of 1:3 (share split) and is now divided into 13,271,442 bearer shares. After the share split, the one bearer share with a proportional amount of the Company's share capital of EUR 3.00 will be replaced by three bearer shares with a proportional amount of the share capital of EUR 1.00 attributed to each share.
The Annual General Meeting of MOBOTIX AG, Winnweiler-Langmeil, held on October 21, 2011 resolved to pay out a dividend in the amount of EUR 1.50 per share for fiscal year 2010/11. This corresponds to a dividend of EUR 6,601 thousand. The treasury shares held by the Company do not carry dividend rights. The dividend was paid out on October 24, 2011. By resolution of the Annual General Meeting of September 30, 2009, the Management Board was authorized to acquire treasury shares of the Company until September 30, 2014. The shares to be acquired based on this authorization combined with other shares of the Company, which the Company has already acquired or still possesses, may not exceed more than 10% of the Company's share capital at the time of the resolution or its exercise, accordingly 1,327,144 shares (number after the share split).
The Management Board of MOBOTIX AG adopted on July 15, 2010 to utilize the authorization of the Annual General Meeting of September 30, 2009 to acquire treasury shares pursuant to Section 71 (1) No. 8 AktG in the amount of up to 45,000 shares (number after the share split). The repurchase program was started on July 19, 2010.
Furthermore, the Management Board of MOBOTIX AG adopted on October 5, 2010 to change the conditions of the current share repurchase program to make it possible to acquire up to 150,000 shares (number after the share split).
On May 4, 2012, the Management Board of MOBOTIX AG decided to resume the
repurchase of shares under the share buyback program adopted on July 15, 2010 and expanded on October 5, 2010 at a price not exceeding EUR 24.
As of June 30, 2012, the Company had acquired 98,259 shares (number after the share split). The treasury shares deducted from shareholders' equity are recognized at cost.
During the period under review, the weighted number of shares outstanding was 13,199,939 (prior year qu. 13,220,595, cl. 13,202,293) taking into account the share split.
The tax provisions of EUR 3,371 thousand (September 30, 2011: EUR 2,314 thousand) include provisions for municipal trade tax, corporation tax, and the solidarity surcharge for the assessment periods 2011 and 2012.
The other provisions primarily include provisions for warranties.
Loans in the amount of EUR 850 thousand were repaid as scheduled in the first nine months of fiscal year 2011/12.
The other liabilities have terms of less than one year. They primarily comprise personnel liabilities.
During the period under review, no changes of any significance occurred with regard to transactions with related parties in comparison with the short fiscal year 2011 and with fiscal year 2010/11.
Segment Information For The Nine-Month Period From October 1, 2011 To June 30, 2012 (In The Prior Year Quarterly-based July 1, 2010 To March 31, 2011 And Calendarbased October 1, 2010 to June 30, 2011) No definable business segments exist within
MOBOTIX AG, the operating results of which are regularly reviewed by the Management Board with regard to decisions concerning the allocation of resources to these business segments or the measurement of the profitability. Due to internal structures and its size, resource allocation management within the MOBOTIX Group takes place based on sales revenues, primarily according to regions, but
also according to product lines. Profitability ratios or earnings statements are only prepared on the level of the entire company. Thus, no separate financial information is calculated for definable business segments. In this respect, no reportable segments exist in terms of IFRS 8.
Revenue by product line is broken down as follows:
| EUR' 000s | Oct. 1, 11- June 30, 12 |
Oct. 1, 10- June 30, 11 |
Additional information July 1, 2010- Mar. 31, 2011 |
|---|---|---|---|
| Fixed Cams | 28,633 | 27,630 | 24,930 |
| Dome Cams | 28,340 | 27,699 | 24,002 |
| Other | 2,736 | 2,797 | 2,467 |
| Total | 59,709 | 58,126 | 51,399 |
Revenue by region is broken down as follows:
| EUR' 000s | Oct. 1, 11- June 30, 12 |
Oct. 1, 10- June 30, 11 |
Additional information July 1, 2010- Mar. 31, 2011 |
|---|---|---|---|
| Germany | 15,496 | 13,315 | 12.721 |
| Rest of Europe | 21,652 | 23,706 | 21.110 |
| Rest of the world | 22,561 | 21,105 | 17.568 |
| Total | 59,709 | 58,126 | 51.399 |
The Company's product lines have not changed significantly compared to September 30, 2011.
No single customer generates more than 10% of total revenue.
Winnweiler-Langmeil, July 19, 2012
The Management Board
Dr. Ralf Hinkel • CEO MOBOTIX AG
Lutz Coelen • CFO MOBOTIX AG
Dr. Magnus Ekerot • CSO MOBOTIX AG
Dr. Oliver Gabel • CTO MOBOTIX AG
To the best of our knowledge, we hereby affirm that, pursuant to the generally accepted accounting principles for interim reporting, the consolidated financial statements give a true and fair view of the net assets, financial position and the results of operations of the Group, that the Interim Report presents the development of the Group's business, including its performance and situation, in such a way that it is a true and fair reflection, and that it describes the major risks and opportunities inherent in the development of the Group during the remaining financial year.
Winnweiler-Langmeil, July 19, 2012
The Management Board
Dr. Ralf Hinkel • CEO MOBOTIX AG Dr. Magnus Ekerot • CSO MOBOTIX AG
Lutz Coelen • CFO MOBOTIX AG Dr. Oliver Gabel • CTO MOBOTIX AG
To MOBOTIX AG, Winnweiler-Langmeil
We have reviewed the Condensed Interim Consolidated Financial Statements of the MOBOTIX AG, Winnweiler-Langmeil comprising a statement of financial positions, an income statement, a statement of comprehensive income, a statement of cash flows, a statement of changes in equity and condensed notes - together with the Interim Group Management Report of the MOBOTIX AG, Winnweiler-Langmeil, for the period from October 1, 2011 to June 30, 2012 that are part of the six months financial report according to § 37w 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, July 19, 2012
KPMG AG Wirtschaftsprüfungsgesellschaft
Geis-Sändig Palm
Auditor Auditor
| CCD | Image sensor Charged Coupled Device; a light sensitive hardware component |
|---|---|
| CIF | Common Intermediate Format, an image compression format |
| CMOS image sensor | Complementary Metal Oxide Semiconductor - a light sensitive hardware component |
| CPU | Central Processing Unit |
| DVR | Digital Video Recorder |
| Fixdome | Camera without any mechanical moving parts, inside a dome housing |
| HDTV | High Definition TV |
| HiRes | High Resolution |
| IP network | Data network based on Internet protocols |
| IP standard | Standardized network protocol |
| JPEG format | A lossy image data format which reduces the file size by compressing the same or similar image content. |
| LAN | Local Area Network; local network |
| Control center computer | The computer at a central control center that enables the information supplied by the camera to be handled |
| Megapixel | Image size of more than 1 million pixels |
| MPEG format | Video format for creating data steams for streaming images, defined by the Motion Picture Experts Group |
| SD Card | SD Memory Card (short for Secure Digital Memory Card) is a digital memory device that works according to the principle of flash memory, such as a USB card |
| TCP/IP protocol | Transmission Control Protocol/Internet Protocol |
| Video server | Central storage unit for video images or video streams |
| VoIP | Voice over IP; standard for voice transmission via IP networks |
| EBITDA | Earnings before interest, taxes, depreciation and amortization |
|---|---|
| EBITDA margin | EBITDA divided by total output multiplied by 100 (the higher the percentage, the higher the financial performance) |
| EBIT | Earnings before interest and taxes |
| EBIT margin | EBIT divided by total output multiplied by 100 (the higher the percentage, the higher the financial performance) |
| Total output | Revenue plus/minus changes in inventories plus other own work capitalized |
| Gross profit | Total output less cost of materials |
| Dividend yield | Dividend divided by share price multiplied by 100 |
| Equity-to-assets ratio | Equity as reported on the balance sheet divided by total assets multiplied by 100 (the higher the figure, the lower the debt-to-equity ratio) |
| Free float | Shares of a public listed company that are freely available to the investing public |
| Market capitalization | Number of shares multiplied by share price |
This financial report contains MOBOTIX AG statements and information which relate to future periods. Such future-oriented statements may be recognised from wording such as plan, expect, intend, endeavour, will, estimate, assume, aim at or similar such terms. Statements of this kind have been made on the basis of current circumstances and current expectations and may differ considerably from the actual development both to positive and negative effect. The following factors, amongst others, may give rise to uncertainties: changes to the overall economic situation both nationally and internationally, changes to the underlying political situation, the introduction of new products or technologies by other companies, changes to investment activities in the customer markets important to MOBOTIX AG, changes to exchange rates and interest rates, integration of acquired companies along with other factors. MOBOTIX AG does not accept any obligation over and above existing legal obligations to correct or update future-oriented statements.
This is an English translation of the German original. Only the German version is binding. The financial reports from MOBOTIX AG are available as pdf files on the homepage (www.mobotix.com).
Roadshow Stockholm AGB Sundal Collier September 18th, 2012 Annual General Meeting of the Shareholders 2012 December 20th, 2012
| Lutz Coelen | MOBOTIX AG |
|---|---|
| CFO | Investor Relations |
| Phone: +49 6302 9816-111 | Kaiserstrasse |
| Fax: +49 6302 9816-190 | 67722 Langmeil |
| E-mail: [email protected] | E-mail: [email protected] |
MOBOTIX AG Security-Vision-Systems Kaiserstrasse D-67722 Langmeil, Germany Phone.: +49 6302 9816-0 Fax: +49 6302 9816-190 E-mail: [email protected] www.mobotix.com
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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