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AXIS Communications A world of intelligent networks Third quarter 2001 CEO Peter Ragnarsson CFO Jörgen Lindquist
Third quarter 2001 Axis is a profitable company
Highlights - EBIT Ongoing operations
Highlights Strengthened positions Gross margins substantially improved Overhead costs lowered Air transport problems from terror attacks
Sales Axis grows in weak IT-market Global company Market positions Product portfolio Broad customer base Distribution channels
Sales Nine months 2001 Sales 487 Mkr (440) Growth 11% Negative impact in q3 from terror attacks 10 Mkr Ongoing operations
Segments Networked Office Professional buyers Organizations >50 employees Office connectivity OEM Industrial customers Camera IT Security / surveillance Mobile Internet Technology
Networked Office - q Strategic segment Profitable base Negative impact from macro and terror attacks Strengthened positions
Office Connectivity OEM - q Continuous demand for built-in Axis solutions Several major projects accounted for in q Strong orderbook 2002
Camera - q Digitalization Increased security awareness Launch Axis 2191 with audio module Negative impact from terror attacks
Mobile Internet - q Strategic area Wireless technologies (WLAN, Bluetooth, etc) Platform Technology and market uncertainties
Technology - q Increasing demand Industrial use Several strategic customer contracts
Investing for the future Intensive R & D agenda Nine month period 119 Mkr Corresponding to ~20% of sales
Effects from terror attacks Air transport problems More than 10 Mkr in shipments delayed until October
Highlights q EBIT Profitability despite effects from terror attacks
Highlights q Margins 4.8
Highlights q Expenses 48
EBIT by quarter (proforma 2000) R&D overall 31 Mkr in q New structure 20 Mkr restructuring costs in q Restructuring costs in q4 and q1 relates to Netch Towards profitability as planned
ThinServer products - EBIT q Profitability in focus Action program reduces cost by 15% EBIT level improved significantly Action program impacts profitability from q3 and onwards
Mobile Internet products - EBIT q3 -01 Intensive R&D Total investment in q Mkr (21) Investment level reduced during 2001
EBIT analysis q (proforma q3-2000)
Sales – Q3
Market trends Generally weak market conditions expected to remain at least until mid 2002
Axis 2001 Focus on network connectivity Global presence Industry insider R&D portfolio Established channels to markets Track record
Outlook 2001 Profitable operations second half of year 2001
This is Axis World-class solutions for easy-to-use, secure and efficient communication over networks
AXIS Communications A world of intelligent networks Second quarter 2001 Presented by Peter Ragnarsson.
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