Annual Report • Feb 14, 2013
Annual Report
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The HiRes Video Company
English 02/2013
... Letter To The Shareholders
The new fiscal year 2012/13 began satisfactorily in the first quarter with total output of EUR 21.0 million (+4.4%) and an EBIT margin of 17.5% adjusted for a nonrecurring special factor.
Sales growth in Germany and Asia nearly compensated for divergent trends in some European countries and the impact of the hurricane on the east coast of the United States, which made it necessary to entirely vacate the offices of MOBOTIX Corp. on short notice and move into new, temporary office spaces.
The enormous potential of our company, the international leadership of our products and the satisfaction of our partners and customers with our products have also been confirmed by a neutral party:
For the second time, the management consulting firm Munich Strategy Group (MSG) selected MOBOTIX as the leader among the Top 100 medium-sized companies in Germany, and more than 75,000 readers voted MOBOTIX as the winner of the GIT Security Award 2013 in the "CCTV" category.
The HiRes Video Company
Our new Chief Financial Officer is Klaus Gesmann, whose many years of experience in international companies in the technology sector will contribute to our future development. He replaced Lutz Coelen in that position on January 1, 2013.
Based on current developments, I am convinced that MOBOTIX will continue its success story in the current fiscal year. At the same time, I thank you for your great interest in our shares and for your trust!
Dr. Ralf Hinkel • CEO MOBOTIX AG
| 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 |
| Director's Dealings | 27 |
| Changes In The Management Board | 27 |
| Significant Events After The First Three Months | 27 |
| Opportunities And Risks Of Future Development And Outlook | 28 |
| Interim Consolidated Financial Statements | 34 |
| Consolidated Income Statement, Consolidated Statement Of Comprehensive Income (Loss) | 34 |
| Consolidated Statement Of Financial Position | 35 |
| Consolidated Statement Of Cashflows | 36 |
| Consolidated Statement Of Changes In Equity | 37 |
| Notes To The Consolidated Financial Statements | 38 |
| Responsibility Statement | 44 |
| Independent Auditors' Review Report | 46 |
| Further Information | 48 |
| 3 months (October 1, 2012 to December 31, 2012) | 2012/13 | 2011/12 | Delta % |
|---|---|---|---|
| Financial performance | €'000s | €'000s | |
| Total output | 20,953 | 20,070 | +4.4 |
| Revenue | 20,070 | 20,791 | -3.5 |
| Thereof outside of Germany (in %) | 71.8 | 74.4 | |
| EBITDA | 4.652(1) | 5,794 | -19.7 |
| EBITDA as % of total output | 22,2(1) | 28.9 | |
| EBIT | 3.675(1) | 4,908 | -25.1 |
| EBIT as % of total output | 17,5(1) | 24.5 | |
| Profit before tax | 3,202 | 4,778 | -33.0 |
| Return on revenue in % before tax | 16.0 | 23.0 | |
| Profit for the period | 2,269 | 3,515 | -35.5 |
| Cash flow from operating activities | 3,659 | 4,297 | -14.8 |
| Financial position | Dec. 31, 2012 | Sep. 31, 2012 | |
| Equity | 40,755 | 45,066 | -9.6 |
| Equity-to-assets ratio in % | 65.2 | 67.3 | |
| Total assets | 62,516 | 66,966 | -6.7 |
| Non-current assets | 25,220 | 25,665 | -1.7 |
| Current assets | 37,296 | 41,302 | -9.7 |
| Thereof cash and cash equivalents | 7,890 | 11,648 | -32.3 |
| Employees | |||
| Number of employees (Reporting date) | 376(2) | 328(2) | +14.6 |
| Revenue per employee | 62(3) | 73(4) | -15.3 |
| EBIT per employee | 11(1)(3) | 17(4) | -33.7 |
| Key figures per share (in EUR) | |||
| Earnings per share (EPS)(5) | 0.17 | 0.27 | -35.2 |
| Dividend | 0.50 | 0.50 | 0 |
| Cash flow as per DVFA/SG(5) | 0.27 | 0.33 | -18.2 |
1) Adjusted for the extraordinary staff costs
2) Including trainees and temporary staff, 4 members of the Management Board; by headcount.
3) Based on an average of 326 employees.
4) Based on an average of 286 employees.
5) Based on an average of 13.143 (previous year 13.201) million shares (after the share split).
February 2012: Anniversary in Antarctica: Under the most extreme weather conditions, MOBOTIX cameras monitor the radio telescope of the German Antarctic Receiving Station O'Higgins to ensure proper continuous functioning of the radio telescope - now for ten years. March 2012: With the D14D, MOBOTIX launches an update of the successful DualDome camera D14 on the market. This camera offers high image quality even in poor lighting conditions thanks to two camera modules mounted parallel to each other with two lenses and 6.2 megapixel dual sensor technology. The integrated vandalism sensor detects forced manipulation immediately. April 2012: At Light+Building in Frankfurt, MOBOTIX present at their own stand the world's first S14 FlexMount in addition to the extensive product range including the most updated version of the dual dome camera D14, a prototype of the T24-Display with touchscreen as well as new accessories. May 2012: The Management resolves to repurchase shares up to a price of EUR 24 within the share buyback program, which had been resolved on 15 July 2010 and had been extended on 5 October 2010. June 2012: In Langmeil the production of the new S14 FlexMount has started. The first double hemispheric camera features miniature lens units and offers a wide range of flexible application scenarios. July 2012: MOBOTIX and the European Football Championship: At the Donbass Arena approximately 560 cameras provide security for around 50,000 spectators. MOBOTIX cameras are also used to help evaluate decisions during the Olympic Games 2012 in London. August 2012: Count, measure, analyze: With MxAnalytics, MOBOTIX launches an efficient tool that can be used to receive important information for process optimization and marketing purposes. September 2012: Successful participation in the trade show "security" in Essen: For the first time, MOBOTIX presents the dual camera M15 with a resolution of up to two times five megapixel. The market launch is scheduled for 2013. October 2012: For the second time, MOBOTIX earns first place in the "Top 100 - Small and Medium-Sized Business Rankings 2011" of the Munich Strategy Group (MSG). Despite the weaker market environment, MOBOTIX AG ends fiscal year 2011/12 with an increase in turnover of 12%. November 2012: More than 75,000 readers chose MOBOTIX the winner of the GIT Sicherheit Award 2013 in the category C "CCTV". December 2012: The Supervisory Board appointed Klaus Gesmann as new Chief Financial Officer at its meeting on December 13, 2012. He succeeds Lutz Coelen on January 1, 2013.
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 350 employees, and an export share of over 70%, MOBOTIX has achieved a 6% 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 the 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.
The Druzhba Palace of Sports in Donetsk is home to the Ukrainian champion ice hockey team "HK Donbass Donetsk", which is aiming to join the ranks of the Kontinental Hockey League (KHL), where it would play against hockey teams from Russia, Kazakhstan, Latvia and Belarus to play. The stadium was equipped with a video security solution from MOBOTIX during refurbishment work due to increasing popularity of the sport. A total of 74 cameras are up and running
in order to provide the highest possible security for the fans and players at all times. The main entrance is secured by D14 cameras, while Q24 cameras secure the entrances to the grandstands and the entrances
to the staff, team and VIP areas. M24 mono cameras are installed in the grandstands and all of the events in the corridors are monitored by D24M dome cameras. Security is guaranteed both inside and outside the arena, where M12D cameras keep watch over the parking lot. The rising visitor count has led to plans to expand the grandstands and build additional parking spaces, which means that more cameras from MOBOTIX will be used in the future.
The Calgary Catholic School District (CCSD) in Alberta, Canada, employs video security solutions from MOBOTIX in order to prevent acts of violence and vandalism and to ensure the safety of more than 45,000 students. More than 200 cameras have been installed across multiple campuses. The incidence of graffiti and vandalism was reduced so much that within nine month the complete cost of the installation had paid for itself. There are also no additional costs for managing the cameras thanks to the use of MxControlCenter. The Q24 Hemispheric camera with a 360° allround view is used as an internal camera while the D12 and M12 cameras are used to keep a close eye on the outside areas of the schools. There are already plans to continue upgrading the security technology in the 104 schools in Calgary.
Commerzbank AG • Deutsche Bahn Station & Service AG • EON Wasserkraft • Fraport AG • Landessportbund Hesse • Le Méridien Parkhotel Frankfurt • MAN Logistics • Casino Mainz, Trier, Bad Ems GmbH & Co. KG • Gas Station Group Roth • University Hospital Frankfurt • World Cultural Heritage Site Völklinger Hütte • etc.
BIEBER + MARBURG, Hesse's largest steel trading company, uses MOBOTIX cameras to secure its halls, the outside area and the entrances to the office building. The video technology is not only needed to prevent theft and break-ins. Up to 50 heavy-duty trucks arrive and leave the premises every day and all processes related to the loading of approximately 500 to 600 metric tons of steel are carefully documented. Almost 50 network cameras are up and running and used to monitor emergency exits, among other things. When the company closes its gates on the weekend, an image is sent to the main office every time a door is unlocked. There are two additional cameras mounted on a crane in the warehouse at a height of 12 meters that secure the fully automated inventory control system and report disruptions.
The Birmingham Zoo in Birmingham, Alabama, covers an area of 20 hectares and is home to 750 animals of 250 species, including many endangered ones, too. The M12, M24 and Q24 camera models cover the Trails of Africa exhibit, select point-of-sale stations and the safari cafeteria. The cameras are utilized to
investigate theft and locate lost children. The cameras will also collect critical information on animal behavior. The Birmingham Zoo is proposing unique ways elephant conservation with its new Trails of Africa exhibit, and it also serves as a science and ecology facility for primary schools. Zoo officials were able to experience the birth of a baby orangutan thanks to remote access provided by MxControlCenter. The Birmingham Zoo is the family attraction of choice in southeastern U.S. and is enjoying increasing popularity, which is why there are plans for more animals, exhibit areas and state-of-the-art technologies.
Bahrain Defense Hospital (Bahrain) • Donbass Arena UEFA EURO 2012 Football Stadium (Ukraine) • Central Bank of Philippines • Orange Mobile (Romania) • Republic Polytechnic (Singapore) • Reykjavik Art Museum (Island) • Sderbank of Russia (Ukraine) • Tyger Valley Shopping Center (South Africa) • 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.
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,
not capable of doing.
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
allowing you to monitor and record several different areas of a room at the same time, something that a mechanical PTZ camera is
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 hemi-
spheric 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.
In the reporting period from October to December 2012, the stock markets were able to continue the upward trend of the prior quarter and finished the year 2012 on a clearly positive note.
Nonetheless, the current trends in the international markets are still very much marked by the euro crisis and the uncertainty in the USA. The measures taken by the EU member states stabilized and calmed the markets, but not yet for the long term. In the USA, the performance of the markets was dominated by the presidential elements and the budget battle. On the whole, the US markets closed in negative territory. It remains to be seen whether it will be possible to find a sustainable compromise in the budget fight.
Since the IPO in October 2007, the MOBOTIX share has consistently proven to be an exceptionally lucrative investment, despite the highly volatile trend in the last business year and in particular in the reporting period. It is one of the few IPOs in recent years to have generated positive returns for its initial subscribers.
As an example, initial subscribers realized capital gains of 287.1% (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 lost 4.7% in the same period, and the technologyfocused TecDAX lost 17.7%. 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 62.2%. 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 owneroperated, members of the management and supervisory boards or their families must hold between 25% and 75% of the voting shares.
In the first quarter just ended of fiscal year 2012/13, MOBOTIX shares reached a high of EUR 20.60 on December 6, 2012, and a low of EUR 15.91 on October 2, 2012. The closing price on December 31, 2012, was EUR 18.16. Accordingly, MOBOTIX shares gained 28.7% in value in the reporting period (including dividends).
| MOBOTIX share | 287,1% | 28,7% |
|---|---|---|
| DAX | -4,7% | 5,5% |
| TecDAX | -17,7% | 2,3% |
| GEX | -62,2% | -7,9% |
*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 2011/12 on December 20, 2012, a dividend of EUR 0.50 per share (prior year: EUR 1.50 per share before share split) was approved and subsequently paid to the shareholders.
At the end of the first quarter of the fiscal year 2012/13, 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 and according to the voting rights notification of October 18, 2012, Martin Putsch holds indirectly 9.91%. A share buyback program was started in July 2010. As of December 31, 2012 MOBOTIX AG had acquired 128,134 treasury shares as part of the share buyback program. In the first quarter of the current fiscal year 2012/13 no further treasury shares were acquired. The free float as defined by the Deutsche Börse is 38.90%.
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 the Pan European Small and Mid Cap Conference in London, as were as roadshows in London, Zurich, Belgium, Paris and the Netherlands.
On December 20, 2012, MOBOTIX Annual General Meeting for the past short fiscal year was held at the Company's headquarters. With approximately 180 shareholders, 71.40% 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 2011 and 2012, the Bank of America Merrill Lynch and the Berenberg Bank have taken up coverage of the MOBOTIX share. Besides both new banks, analysts of the DZ Bank, the Equinet AG, Hauck & Aufhäuser and GBC AG have also taken up continuous coverage of the share.
| High (December 6, 2012) | 20.60 € | ||
|---|---|---|---|
| Low (October 2, 2012) | 15.91 € | ||
| Closing price* | 18.16 € | ||
| Market capitalization* | 241.0 Mio. € | ||
*as of reporting date December 31, 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), T24 (IP-based door station), as well as the product line S14 (FlexMount Camera in Mono
and Dual versions) which has been available since June 2012. MOBOTIX offers a comprehensive range of accessories and powerful software solutions for all of its product lines. The MxControlCenter is a complete video management solution in the form of a control center that is able to integrate cameras from
other manufacturers into the video security system as well - with an unlimited number of cameras. MxEasy allows the integration of up to 16 MOBOTIX cameras and thus represents the ideal video software solution for use in the small office and home security segments. Both MOBOTIX video management solutions are offered to customers free of charge.
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. The relevant market segment for MOBOTIX is network camera systems.
In a recent study conducted 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.
Currently, the market environment for network camera systems is developing slightly more weakly than forecast by IMS Research. Particularly in several regional markets in Europe, the debt crisis is expected to cause temporarily lower growth rates. Nevertheless, we assume that the performance of the global market for network camera systems will continue to be positive and stable with high growth rates.
In the first three months of the year under review 2012/13, the macroeconomic developments in Europe and non-recurring special factors impacted the business development of the MOBOTIX Group.
The debt crisis in Europe has led to significant revenue declines in some European countries. Sales decreased in the three countries Italy, France and the Netherlands by EUR 880 thousand compared to the prior year quarter. Increased sales in Germany and in several other European countries almost equaled the prior year sales in this region but could not surpass them.
Furthermore, the hurricane in October 2012 on the east coast of North America had an impact on revenue and earnings growth in the first quarter of the fiscal year. The hurricane damaged the office building of MOBOTIX CORP. in New York so severely that it led to an immediate extraordinary termination of the rental space by the owner. This made it necessary to completely vacate the company headquarters on short notice and move into new office space on a temporary basis. Despite the provision of intensive support for the American subsidiary by the company head office in Langmeil, sales revenues decreased in this region by USD 960 thousand (-17.3%) compared to the prior year quarter. It is planned that the search for new company headquarters for the MOBOTIX CORP. will be completed in the second quarter of the fiscal year. It is not yet possible to estimate the extent to which the search and the new move of the company headquarters will influence sales performance in the second quarter.
In addition, the premature termination of a management contract resulted in additional personnel expense in the amount of EUR 0.4 million. Against the backdrop of these developments and special factors, the earnings situation of the MOBOTIX Group developed as follows:
The MOBOTIX Group generated in the first quarter of fiscal year 2012/13 a revenue of EUR 20.1 million (prior year: EUR 20.8 million) and profit before taxes of EUR 3.2 million (prior year: EUR 4.8 million). Total operating perfor-
20
Hemispheric IP Video Door Station in silver. Additional colors (white, dark gray, amber and black) are available.
mance (sales revenue, increase/decrease in finished goods and work in progress and other own work capitalized) increased from EUR 20.1 million to EUR 21.0 million (+4.4%).
While sales in Germany in the first quarter of the fiscal year increased from EUR 5.3 million in the prior year to EUR 5.7 million (+6.0%), the revenues in the rest of Europe (excluding Germany) decreased from EUR 7.1 million to EUR 6.7 million (-5.9%).
Sales in the rest of the world decreased from EUR 8.4 million in the first quarter of 2011/12 to EUR 7.7 million (-7.5%). The decline in revenue is primarily due to the effects of the hurricane on the east coast of the USA.
The export ratio in the first three months of 2012/13 was 71.8% (prior year: 74.4%). Since product prices were neither increased nor lowered, the decline in sales is primarily based on volume effects.
Revenues from sales of dome cameras grew from EUR 9.9 million in the first quarter of 2011/12 to EUR 10.7 million (+8.8%); revenues from sales of fixed cameras decreased compared to the first three months of fiscal year 2011/12 by 16.3% to EUR 8.3 million (prior year: EUR 10.0 million).
At 26.5%, the material usage ratio (ratio of cost of materials to total operating performance) was at the level of the prior-year quarter. The increase over the prior-year quarter of 2011/12 is mainly due to the negative changes in inventories in the first quarter of 2011/12.
The personnel usage ratio (staff costs to total output) adjusted for the extraordinary staff costs increased from 28.0% in the first quarter of 2011/12 to 29.2% in the period under review with a further build-up of the workforce. New hires were made in sales, production and development in particular. Compared to the first quarter of 2011/12, personnel expenses (adjusted for the extraordinary expenses) rose by EUR 0.5 million.
Other operating expenses (EUR 4.8 million, prior year: EUR 4.6 million) rose only slightly compared to the prior year. 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) (20.4% of total operating performance) amounted to EUR 4.3 million (prior year: EUR 5.8 million). Earnings before interest and taxes (EBIT) (15.8% of total operating performance) amounted to EUR 3.3 million (prior year: EUR 4.9 million) and net income amounted to EUR 2.3 million (prior year: EUR 3.5 million) (return on sales: 11.3%). Adjusted for the extraordinary for staff costs, EBITDA came to EUR 4.7 million (22.2% of total operating performance) and EBIT came to EUR 3.7 million (17.5% of total operating performance).
Development costs in the amount of EUR 0.2 million (prior year EUR 0.2 million) were capitalized in the period under review. Property, plant and equipment decreased by EUR 0.4 million, (-1.7%), to EUR 22.8 million. Capital expenditure on property, plant and equipment of EUR 0.3 million was offset by depreciation in the amount of EUR 0.7 million. The investments related primarily to 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.
Due to planned increases in coverage of individual components as well as an increase in inventories of finished products, inventories increased by EUR 1.1 million (+7.6%) to EUR 15.9 million, compared to the beginning of fiscal year.
Revenue Rest Of World € 7.7m (-7.5%)
Trade receivables decreased to EUR 7.9 million, a decrease of EUR 1.9 million compared to the balance sheet date as of September 30, 2012, due to the lower business volume in December 2012.
Other assets amounted to EUR 5.0 million (September 30, 2012: EUR 4.5 million) and comprised gold reserves at a carrying amount of EUR 3.6 million, tax refunds at EUR 0.5 million and advance payments of EUR 0.5 million.
Cash and cash equivalents declined by EUR 3.8 million to EUR 7.9 million (September 30, 2012: EUR 11.6 million).
On the equity and liabilities side, equity declined by EUR 4.3 million to EUR 40.8 million due to the payment of the dividend. The equityto-assets ratio declined from 67.3% to 65.2% as total assets were reduced by EUR 4.5 million (6.7%). The number of treasury shares remained unchanged at 128,134 shares.
Due to tax expenses for fiscal year 2012/13, tax provisions rose by EUR 0.1 million to EUR 4.6 million. The decrease in liabilities to banks resulted in particular from the planned repayment of loans totaling EUR 0.3 million. At EUR 4.6 million (September 30, 2012: EUR 3.6 million), trade payables increased by EUR 1.0 million compared to September 30, 2012.
Other liabilities decreased by EUR 1.0 million to EUR 2.2 million compared to September 30, 2012.
Based upon the developments described above, the total assets of the MOBOTIX Group decreased by EUR 4.5 million to EUR 62.5 million (6.7%) as of December 31, 2012 compared to September 30, 2012.
Cash flows from operating activities of the MOBOTIX Group amounted to EUR 3.7 million in the first three months of fiscal year 2012/13 (prior year EUR 4.3 million). At EUR 0.5 million (prior year: EUR 0.8 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 0.3 million. The negative cash flow from financing activities of EUR 6.9 million (prior year: EUR 7.0 million) resulted in particular from the payment of a dividend of EUR 6.6 million. In addition, EUR 0.3 million was expended for the scheduled repayment of the loan.
The various cash flows generated during the reporting period resulted in cash and cash equivalents of EUR 7.9 million as of December 31, 2012. The Company's solvency was guaranteed at all times in the first quarter of fiscal year 2012/13. Due to the Company's creditworthiness, a number of financing options are available.
Non-current liabilities decreased by EUR 0.2 million to EUR 8.9 million compared to September 30, 2011. Non-current liabilities as a share of total assets of the MOBOTIX Group increased from 13.7% to 14.2%. As of the reporting date, current liabilities represented 20.6% of total assets, compared to 19.1% as of September 30, 2012.
The development of the Group's net assets, financial position and results of operations in the first three months of fiscal year 2012/13 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 and considering the extraordinary events in the USA.
Development activities were also further expanded during the first three months of fiscal year 2012/13. As of December 31, 2012, the MOBOTIX Group had 88 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.
One focus in the first three months was on the development of the mobile remote station for MOBOTIX cameras and door stations as well as on the development of the M15, the successor to the M12.
In addition, the foundation was laid for further product innovations in Development.
Five employees were hired in the first three months of fiscal year 2012/13. As of December 31, 2012, the MOBOTIX group had a total of 335 employees (excluding trainees and temporary staff, including members of the Management Board; by headcount) (September 30, 2012: 327 employees).
D14D DualDome original image: Tele lens (left) and wide angle lens (right) – at the same time in one image
376 (Head count incl. management board, trainees and temps)
During the period from October 1, 2012 to December 31, 2012, no reportable purchases or sales of shares were effected by members of the Management Board or Supervisory Board.
In its meeting held on December 13, 2012, the Supervisory Board of MOBOTIX appointed Mr. Klaus Gesmann as the Company's new Chief Financial Officer effective January 1, 2013. Mr. Lutz Coelen resigned from the Company as of December 31, 2012.
No events of any significance occurred after the end of the first three months of fiscal year 2012/13.
No other significant changes in transactions with related parties occurred during the period under review.
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.
Material Risks
Please refer to the Annual Report for the fiscal year 2011/12 for details of any material risks.
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 globally more 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 already be seen in several European countries in particular.
During the period under review, the risk situation and risk management system did not deviate notably from that described in the Annual Report for fiscal year 2011/12. The Company sees no risks at the present time or in the future that would endanger the Company's continued existence or would have a material influence on its development. Technological innovation and further expansion of the distribution network are extremely important for the Group's sustained success.
The high growth rates predicted for the medium and long term create the foundation for the Company's continued 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). Several providers of hemispheric cameras have come on the scene in the meantime. Due to the generally centralized system architecture of the competitors, these cameras are, however, of poor quality and/or have lower performance. This would strengthen the MOBOTIX Group's competitive position and put pressure on the competition.
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. With the introduction of the Digital Video Door Station T24, the focus is currently on the targeted global expansion of the distribution channels to include electrical wholesalers.
In terms of regions, key growth areas for the coming months will be in North America, South America and Asia.
The introduction of the hemispheric camera technology to the market has been very successful. The fact that the technology has established itself as a new type of camera in the market, and significant major competitors are still unable to offer any products or only offer products of inferior quality demonstrates the innovative strength of MOBOTIX AG. The introduction of the S14 camera line - a completely new type of camera, in a form that had been unprecedented in the market before - is also a clear sign of innovation power.
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 analog or hybrid technology in combination with a 4/5-wire or 2-wire cabling, and a centralized approach to technology. Digital systems based on IP networks basically represent a forward-looking innovation and a market novelty. In contrast to the competition, MOBOTIX AG offers purely digital products in combination with the proven, decentralized technology approach. 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 currently located. This new IP-based technology is far ahead of today's systems and also allows the use of integrative door communications, video surveillance, alarm, access control and home automation from a single source via iPhone and iPad. A significant innovation is efficient access even via mobile phone networks with low data bandwidth. The Company is accordingly aiming to be the technology leader in this market segment.
The new S14 camera line with its miniature installation modules was launched at the end of June 2012, 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 entry into the new product segment of Access Control & Communication and the associated lack of experience as to the possible speed of global market penetration on the one hand, and the rising uncertainty associated with the "euro crisis" on the other hand make it difficult to predict the outlook for the current fiscal year 2012/13 as well as the following year.
In light of the debt and financial crisis, a high degree of uncertainty and recessionary trends are likely to persist in the short term, particularly in Europe.
Considering the above-named overall conditions and taking into account the results of the first quarter, we expect continued revenue growth of about 5% and an EBIT margin of about 20% for fiscal year 2012/13.
The above forward-looking statements are of a purely predictive nature. The actual results may thus deviate substantially from these expectations.
Winnweiler-Langmeil, January 18, 2013
The Management Board
Dr. Ralf Hinkel • CEO MOBOTIX AG
Dr. Magnus Ekerot • CSO MOBOTIX AG
Dr. Oliver Gabel • CTO MOBOTIX AG
Klaus Gesmann • CFO MOBOTIX AG
| 3 Months | |||
|---|---|---|---|
| Oct. 1, 2012- | Oct. 1, 2011- | ||
| EUR '000s | see notes | Dec. 31, 2012 | Dec. 31, 2011 |
| Revenue | (1) | 20,070 | 20,791 |
| Increase/Decrease in finished goods and work in progress | 700 | -898 | |
| Other own work capitalized | (2) | 183 | 177 |
| Total output | 20,953 | 20,070 | |
| Cost of materials | (3) | -5,558 | -4,376 |
| Gross profit | 15,395 | 15,694 | |
| Ongoing staff costs | -6,114 | -5,613 | |
| Extraordinary staff costs | -368 | 0 | |
| Staff costs | (4) | -6,482 | -5,613 |
| Depreciation and amortization | -977 | -887 | |
| Other operating income | 138 | 263 | |
| Other operating expenses | (5) | -4,767 | -4,550 |
| Operating profit | 3,307 | 4,908 | |
| Other interest and similar income | 15 | 4 | |
| Interest expense and similar charges | -120 | -134 | |
| Profit before tax | 3,202 | 4,778 | |
| Income taxes | (6) | -933 | -1,264 |
| Profit for the period | 2,269 | 3,515 | |
| Profit attributable to shareholders of MOBOTIX AG | 2,269 | 3,515 | |
| Earnings per share (diluted/basic) in EUR* | 0,17 | 0.27 |
| Consolidated Statement of Comprehensive Income | Oct. 1, 2012- Dec. 31, 2012 |
Oct. 1, 2011- Dec. 31, 2011 |
|---|---|---|
| Profit for the period | 2,269 | 3,515 |
| Difference resulting from currency translation | -9 | -2 |
| Accumulated other comprehensive income (after tax; to be reclassified into the income statement in future periods) |
-9 | -2 |
| Total comprehensive income for the period | 2,260 | 3,513 |
| Profit attributable to shareholders of MOBOTIX AG | 2,260 | 3,513 |
| EUR '000s | see notes | Dec. 31, 2012 | Sept. 30, 2012 |
|---|---|---|---|
| Intangible assets | (7) | 2,140 | 2,233 |
| Property, plant and equipment | (8) | 22,758 | 23,158 |
| Other investments | 4 | 0 | |
| Prepaid expenses | 51 | 56 | |
| Deferred tax assets | 267 | 218 | |
| Non-current assets | 25,220 | 25,665 | |
| Inventories | (9) | 15,936 | 14,810 |
| Trade receivables | 7,947 | 9,834 | |
| Other assets | 5,025 | 4,543 | |
| Cash and cash equivalents | 7,890 | 11,648 | |
| Prepaid expenses | 498 | 466 | |
| Current assets | 37,296 | 41,301 | |
| ASSETS | 62,516 | 66,966 | |
| Subscribed capital | 13,271 | 13,271 | |
| Statutory reserves | 77 | 77 | |
| Capital reserves | 818 | 818 | |
| Treasury shares | -1,798 | -1,798 | |
| Accumulated other comprehensive income | 17 | 26 | |
| Profit or loss carried forward | 26,101 | 18,981 | |
| Profit for the period | 2,269 | 13,691 | |
| Equity | (10) | 40,755 | 45,066 |
| Liabilities to banks | (13) | 8,242 | 8,468 |
| Deferred tax liabilities | 659 | 670 | |
| Non-current liabilities | 8,901 | 9,138 | |
| Tax provisions | (11) | 4,603 | 4,478 |
| Other provisions | (12) | 246 | 245 |
| Liabilities to banks | (13) | 1,164 | 1,164 |
| Trade payables | 4,622 | 3,602 | |
| Other liabilities | (14) | 2,225 | 3,272 |
| Current liabilities | 12,860 | 12,762 | |
| EQUITY AND LIABILITIES | 62,516 | 66,966 |
Total Assets € 62.5m (-6.7%)
| Oct. 1, 2012- | Oct. 1, 2011- | ||
|---|---|---|---|
| EUR '000s Profit before tax for the period |
Dec. 31, 2012 3,202 |
Dec. 31, 2011 4,778 |
|
| + | Net interest income or expense | 105 | 129 |
| + | Depreciation and amortization of property, plant and equipment, and intangible assets |
977 | 887 |
| + | Interest received | 15 | 4 |
| + | Increase in other provisons | 1 | 11 |
| +/- Loss/profit on disposal of non-current assets | 41 | -15 | |
| + | Other non-cash expenses | 5 | 5 |
| Operating profit before changes in working capital | 4,346 | 5,799 | |
| + | Decrease in inventories, trade receivables and other assets not attributable to investing or financing activities |
209 | 255 |
| - | Decrease in trade payables and other liabilities not attributable to investing or financing activities |
-26 | -971 |
| Cash flow from operating activities before tax | 4,529 | 5,083 | |
| - | Income tax paid | -869 | -786 |
| Cash flow from operating activities | 3,660 | 4,297 | |
| - | Cash paid for purchases of property, plant and equipment | -316 | -584 |
| - | Cash paid for purchases of intangible assets | -225 | -213 |
| + | Cash paid for other investments | -4 | 0 |
| + | Cash received from disposals of property, plant and equipment | 16 | 25 |
| Cash flow from investing activities | -529 | -772 | |
| - | Dividends paid | -6,571 | -6,601 |
| - | Cash paid fot the redemption of loans | -268 | -268 |
| - | Interest paid | -80 | -88 |
| Cash flow from financing activities | -6,918 | -6,956 | |
| Net change in cash and cash equivalents | -3,788 | -3,431 | |
| Effect of exchange rate and other changes on cash and cash equivalents | 30 | 3 | |
| Cash and cash equivalents at the beginning of the reporting period | 11,648 | 6,994 | |
| Cash and cash equivalents at the end of the reporting period | 7,890 | 3,566 |
36
| EUR '000s | Subscribed capital |
Statutory reserves |
Capital reserves |
Treasury shares |
Accumulated other comprehensive income |
Profit or loss carried forward |
Result for the period |
Total |
|---|---|---|---|---|---|---|---|---|
| Balance as of Oct. 1, 2011 | 4,424 | 9,665 | -778 | 36 | 25,659 | 0 | 39,006 | |
| Dividend payment | -6,601 | -6,601 | ||||||
| Capital increase from reserves |
8,847 | -8,847 | 0 | |||||
| Currency translation | -2 | -2 | ||||||
| Profit for the period | 3,515 | 3,515 | ||||||
| Balance as of Dec. 31, 2011 | 13,271 | 818 | -778 | 34 | 19,058 | 3,515 | 35,918 | |
| Currency translation | -8 | -8 | ||||||
| Purchase of treasury shares | -1,020 | -1,020 | ||||||
| Profit for the period | 10,176 | 10,176 | ||||||
| Allocation to statutory reserves |
77 | -77 | 0 | |||||
| Balance as of Sep. 30, 2011 | 13,271 | 77 | 818 | -1,798 | 26 | 18,981 | 13,691 | 45,066 |
| Balance as of Oct. 1, 2012 | 13,271 | 77 | 818 | -1,798 | 26 | 32,672 | 0 | 45,066 |
| Dividend payment | -6,571 | -6,571 | ||||||
| Currency translation | -8 | -8 | ||||||
| Profit for the period | 2,269 | 2,269 | ||||||
| Balance as of Dec. 31, 2012 | 13,271 | 77 | 818 | -1,798 | 17 | 26,101 | 2,269 | 40,755 |
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 65.2%
MOBOTIX AG was established on June 21, 1999. Since September 30, 2009, the Company's registered office has been in Winnweiler-Langmeil (Kaiserstrasse, 67722 Winnweiler-Langmeil).
MOBOTIX AG is a European technology leader and system provider in the production of highresolution digital, network-based video security systems, video management software and systems accessories. The core technology of MOBOTIX AG is its proprietary, internally manufactured, fully digital network cameras.
MOBOTIX products are sold worldwide primarily via distributors, qualified systems integrators and specialist retailers.
The fiscal year of MOBOTX AG begins on October 1 of one year and ends on September 30 of the following year.
The consolidated interim financial statements of MOBOTIX AG as of December 31, 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 2012/13.
The accounting policies applied in the consolidated interim financial statements as of December 31, 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 fiscal year 2011/12.
These consolidated interim financial statements include, for the first time, a breakdown of the changes in equity without effect on income, in connection with the statement of comprehensive income, into such components which are to be reclassified into the income statement in future periods, and those which may not be reclassified (Amendments to IAS 1 - Presentation of Items of Other Comprehensive Income).
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 of MOBOTIX AG for the year ended September 30, 2012.
Unless stated otherwise, all figures in the condensed consolidated financial statements are stated in thousands of Euro (EUR '000s). The translation of Euro into thousands of Euro may give rise to rounding differences of plus or minus one unit (EUR '000s or percent).
The basis of consolidation used by MOBOTIX AG for the three-month period ended December 31, 2012 is the same as that used in the consolidated financial statements for the fiscal year ended September 30, 2012 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 and MOBOTIX DO BRASIL Ltda., São Paulo, Brazil, have not been included in the consolidated financial statements as they are not material to the consolidated financial statements of MOBOTIX AG.. MOBOTIX Ltd. and MOBOTIX DO BRASIL Ltda. are currently not operating.
A breakdown of revenue by region and product line is presented as part of the segment information.
Other own work capitalized in the first three months of fiscal year 2012/13 refers primarily to development costs capitalized in the amount of €183 thousand (prior year: €177 thousand).
| EUR '000s | Oct. 1, 12- Dec. 31, 12 |
Oct. 1, 11- Dec. 31, 11 |
|---|---|---|
| Cost of raw materials, supply and merchandise |
5,487 | 4,341 |
| Cost of purchased services |
71 | 35 |
| Total | 5,558 | 4,376 |
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, 12- Dec. 31, 12 |
Oct. 1, 11- Dec. 31, 11 |
|---|---|---|
| Wages and salaries | 5,304 | 4,886 |
| Social security | 810 | 727 |
| Total | 6,114 | 5,613 |
The rise in staff costs reflects in particular the increase in the workforce. In the first three months of 2012/13, the Company employed an average of 326 persons in full-time equivalent positions (prior year: 286) (excluding trainees and temporary staff, including 4 Management Board members). As of the reporting date, the Company employed 335 persons (prior year: 300) (excluding trainees and temporary staff, including members of the Management Board; by headcount).
In addition, extraordinary staff costs amounting to €368 thousand were incurred due to the early dissolution of the contract of a Management Board member.
At EUR 4,767 thousand, other operating expenses are roughly at the level of the prior year and include all expenses that cannot be assigned to other items. They include in particular the cost of marketing, trade fairs and exhibitions, shipping and packaging, legal and consulting fees, as well as premises and maintenance.
Income taxes can be broken down as follows:
| EUR '000s | Oct. 1, 12- Dec. 31, 12 |
Oct. 1, 11- Dec. 31, 11 |
|---|---|---|
| Current taxes | 993 | 1,327 |
| Deferred taxes | -60 | -63 |
| Total | 933 | 1,264 |
The tax rate applicable as of December 31, 2012 was 29.1% (prior year: 26.4%).
The cost of developing camera housings, electronics, and software projects was capitalized at cost in the amount of EUR 183 thousand in the first three months of 2012/13 (prior year: EUR 177 thousand). At EUR 4,470 thousand, the development costs capitalized as of December 31, 2012 (September 30, 2012: EUR 4,287 thousand) comprise all costs directly attributable to the development process. The accumulated amortization and impairment amounted to EUR 2,457 thousand as of December 31, 2012 (September 30, 2012: EUR 2,171 thousand). The development projects are depreciated in even amounts over a three-year period.
Additions to property, plant and equipment of EUR 316 thousand primarily relate to costs for tools as well as operating and office equipment.
Inventories are composed of the following:
| EUR '000s | Dec. 31, 12 | Sep. 30, 12 |
|---|---|---|
| Raw materials and supplies |
6,878 | 6,453 |
| Work in progress | 5,176 | 4,514 |
| Finished goods | 3,882 | 3,843 |
| Total | 15,936 | 14,810 |
Please refer to the statement of changes in equity for an overview of the development of equity.
The Annual General Meeting of MOBOTIX AG, Winnweiler-Langmeil, held on December 20, 2012 resolved to pay out a dividend in the amount of EUR 0.50 per share for fiscal year 2011/12. This corresponds to a dividend of EUR 6,571 thousand. The treasury shares held by the Company do not carry dividend rights. The dividend was paid out on December 21, 2012.
The Annual General Meeting of MOBOTIX AG, Winnweiler-Langmeil, held on December 20, 2012 resolved to pay out a dividend in the amount of EUR 0.50 per share for fiscal year 2011/12. This corresponds to a dividend of EUR 6,571 thousand. The treasury shares held by the Company do not carry dividend rights. The dividend was paid out on December 21, 2012.
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, 1010 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 assume the resume the repurchase of share under the share buyback program adopted on July 15, 2010 and expanded on October 5, 2010 at a price not exceeding EUR 24.
The acquisition may be effected as a purchase via the stock exchange or through a public tender offer to all shareholders. In order to simplify the purchase process, should the number of tendered shares exceed the total number of shares the company plans to purchase during a publicly issued purchase offer, the purchase can be carried out under suspension of the shareholders' right to sell based on the amount of shares tendered.
While also under suspension of the shareholders' right to sell, this simplification also serves to give preference to smaller amounts of shares of up to 300 shares tendered per shareholder.
Furthermore, with the consent of the Supervisory Board, the Management Board is authorized to use the treasury shares acquired under the authorization also for purposes for which the subscription rights of existing shareholders are excluded.
As of December 31, 2012, the Company had acquired 128,134 shares. The treasury shares reduced equity by the amount of their cost.
During the period under review, the weighted number of shares outstanding was 13,143,308 (prior year: 13,201,395).
The tax provisions of EUR 4,603 thousand (September 30, 2012: EUR 4,478 thousand) include provisions for municipal trade tax, corporation tax, and the solidarity surcharge for the assessment periods 2011, 2012 and 2013.
The other provisions primarily include provisions for warranties.
Loans in the amount of €268 thousand were repaid as scheduled in the first three months of fiscal year 2012/13.
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 fiscal year 2011/12.
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, 12- Dec. 31, 12 |
Oct. 1, 11- Dec. 31, 11 |
|---|---|---|
| Fixed Cams | 8,349 | 9,972 |
| Dome Cams | 10,731 | 9,861 |
| Other | 990 | 958 |
| Total | 20,070 | 20,791 |
Revenue by region is broken down as follows:
| EUR' 000s | Oct. 1, 12- Dec. 31, 12 |
Oct. 1, 11- Dec. 31, 11 |
|---|---|---|
| Germany | 5,654 | 5,333 |
| Rest of Europe | 6,686 | 7,103 |
| Rest of the world | 7,730 | 8,355 |
| Total | 20,070 | 20,791 |
The Company's product lines have not changed significantly compared to September 30, 2012.
No single customer generates more than 10% of total revenue.
Winnweiler-Langmeil, January 18, 2013
The Management Board
Dr. Ralf Hinkel • CEO MOBOTIX AG
Dr. Magnus Ekerot • CSO MOBOTIX AG
Dr. Oliver Gabel • CTO MOBOTIX AG
Klaus Gesmann • CFO MOBOTIX AG
To the best of our knowledge, we hereby affirm that, pursuant to the generally accepted accounting principles for interim reporting, the consolidated financial statements give a true and fair view of the net assets, financial position and the results of operations of the Group, that the Interim Report presents the development of the Group's business, including its performance and situation, in such a way that it is a true and fair reflection, and that it describes the major risks and opportunities inherent in the development of the Group during the remaining financial year.
Winnweiler-Langmeil, January 18, 2013
The Management Board
Dr. Ralf Hinkel • CEO MOBOTIX AG
Dr. Magnus Ekerot • CSO MOBOTIX AG
Dr. Oliver Gabel • CTO MOBOTIX AG
Klaus Gesmann • CFO MOBOTIX AG
To MOBOTIX AG, Winnweiler-Langmeil
We have reviewed the Condensed Interim Consolidated Financial Statements of the MOBOTIX AG, Winnweiler-Langmeil comprising a consolidated statement of financial positions, a consolidated income statement, a consolidated statement of comprehensive income, a consolidated statement of cash flows, a statement of changes in equity and condensed notes - together with the Interim Group Management Report of the MOBOTIX AG, Winnweiler-Langmeil, for the period from October 1 to December 31, 2011 that are part of the quarterly financial report according to § 37x Abs. 3. WpHG ("Wertpapierhandelsgesetz": "German Securities Trading Act"). The preparation of the Condensed Interim Consolidated Financial Statements in accordance with those IFRS applicable to interim financial reporting as adopted by the EU, and of the Interim Group Management Report in accordance with the requirements of the WpHG applicable to interim group management reports, is the responsibility of the Company's management. Our responsibility is to issue a report on the Condensed Interim Consolidated Financial Statements and on the Interim Group Management Report based on our review.
We performed our review of the Condensed Interim Consolidated Financial Statements and the interim group management report in accordance with the German generally accepted standards for the review of financial statements promulgated by the Institut der Wirtschaftsprüfer (IDW). Those standards require that we plan and perform the review so that we can preclude through critical evaluation, with a certain level of assurance, that the Condensed Interim Consolidated Financial Statements have not been prepared, in material aspects, in accordance with the IFRS applicable to interim financial reporting as adopted by the EU, and that the interim group management report has not been prepared, in material aspects, in accordance with the requirements of the WpHG applicable to interim group management reports. A review is limited primarily to inquiries of company employees and analytical assessments and therefore does not provide the assurance attainable in a financial statement audit. Since, in accordance with our engagement, we have not performed a financial statement audit, we cannot issue an auditor's report.
Based on our review, no matters have come to our attention that cause us to presume that the Condensed Interim Consolidated Financial Statements have not been prepared, in material respects, in accordance with the IFRS applicable to interim financial reporting as adopted by the EU, or that the interim group management report has not been prepared, in material respects, in accordance with the requirements of the WpHG applicable to interim group management reports.
Saarbrücken, January 31, 2013
KPMG AG Wirtschaftsprüfungsgesellschaft
Geis-Sändig Palm
Auditor Auditor
| CCD | Image sensor Charged Coupled Device; a light sensitive hardware component |
|---|---|
| CIF | Common Intermediate Format, an image compression format |
| CMOS image sensor | Complementary Metal Oxide Semiconductor - a light sensitive hardware component |
| CPU | Central Processing Unit |
| DVR | Digital Video Recorder |
| Fixdome | Camera without any mechanical moving parts, inside a dome housing |
| HDTV | High Definition TV |
| HiRes | High Resolution |
| IP network | Data network based on Internet protocols |
| IP standard | Standardized network protocol |
| JPEG format | A lossy image data format which reduces the file size by compressing the same or similar image content. |
| LAN | Local Area Network; local network |
| Control center computer | The computer at a central control center that enables the information supplied by the camera to be handled |
| Megapixel | Image size of more than 1 million pixels |
| MPEG format | Video format for creating data steams for streaming images, defined by the Motion Picture Experts Group |
| SD Card | SD Memory Card (short for Secure Digital Memory Card) is a digital memory device that works according to the principle of flash memory, such as a USB card |
| TCP/IP protocol | Transmission Control Protocol/Internet Protocol |
| Video server | Central storage unit for video images or video streams |
| VoIP | Voice over IP; standard for voice transmission via IP networks |
| EBITDA | Earnings before interest, taxes, depreciation and amortization |
|---|---|
| EBITDA margin | EBITDA divided by total output multiplied by 100 (the higher the percentage, the higher the financial performance) |
| EBIT | Earnings before interest and taxes |
| EBIT margin | EBIT divided by total output multiplied by 100 (the higher the percentage, the higher the financial performance) |
| Total output | Revenue plus/minus changes in inventories plus other own work capitalized |
| Gross profit | Total output less cost of materials |
| Dividend yield | Dividend divided by share price multiplied by 100 |
| Equity-to-assets ratio | Equity as reported on the balance sheet divided by total assets multiplied by 100 (the higher the figure, the lower the debt-to-equity ratio) |
| Free float | Shares of a public listed company that are freely available to the investing public |
| Market capitalization | Number of shares multiplied by share price |
This financial report contains MOBOTIX AG statements and information which relate to future periods. Such future-oriented statements may be recognised from wording such as plan, expect, intend, endeavour, will, estimate, assume, aim at or similar such terms. Statements of this kind have been made on the basis of current circumstances and current expectations and may differ considerably from the actual development both to positive and negative effect. The following factors, amongst others, may give rise to uncertainties: changes to the overall economic situation both nationally and internationally, changes to the underlying political situation, the introduction of new products or technologies by other companies, changes to investment activities in the customer markets important to MOBOTIX AG, changes to exchange rates and interest rates, integration of acquired companies along with other factors. MOBOTIX AG does not accept any obligation over and above existing legal obligations to correct or update future-oriented statements.
This is an English translation of the German original. Only the German version is binding. The financial reports from MOBOTIX AG are available as pdf files on the homepage (www.mobotix.com).
| Announcement of the Half-Year Report 2012/13 | May 15th, 2013 |
|---|---|
| Announcement of the Nine-Month Report 2012/13 | August 22nd, 2013 |
| Announcement of the Annual Report 2012/13 | November 12th, 2013 |
| Annual General Meeting of the Shareholders 2012/13 (expected) | December 19th, 2013 |
| Klaus Gesmann | 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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