... M A K E S Y O U R N E T W O R K S M A R T E R Interim Report Jan - Mar 2003 CEO Ray Mauritsson CFO Jörgen Lindquist
... M A K E S Y O U R N E T W O R K S M A R T E R Continuous growth for Video despite cautious market
Financial Performance Net sales: SEK 153 M (164) ¬ Currency effects impacted negatively: SEK 18 M Operating profit: SEK 0.6 M (11)
Highlights Q1 Continued strong development within Video Proactive market efforts Cautious market conditions
Intelligent Network Solutions Video Solutions Network Cameras Video Servers 52% 40% 8% Network Printing Other Network Scan & Store Technology sales Wireless Access
Leading technology Proven technology and intensive R&D In-house developed chip technology for image processing and network connectivity 19 years of network experience Open standards only More than 120 developer partners
A growing Video market Global market leader Significant growth potential ¬ Growing interest in surveillance and security ¬ Shift from analog to digital solutions ¬ New technical possibilities
Focus on customer segments Retail Bank Transportation Government Education Industrial
Financial Performance Net sales: SEK 153 M (164) ¬ Currency effects impacted negatively: SEK 18 M Operating profit: SEK 0.6 M (11) Continuous strong balance sheet
Sales Q1 Sales by Region 24% 28% 48% Asia Americas EMEA Sales by Product Group 52% Print 40% Scan & Store 6% Access and other 2% Video
Sales by quarter Continued weak market Video grew by 18% compared to Q Weak development within Print Video Other
EBIT by quarter Gross margin: 53.7% (58.7) Operating margin: 0.4% (6.5) Profit margin: 1.7% (8.3)
Investing for the future Intensive R&D agenda ¬ Estimated 15% - 20% reinvested in R&D ¬ Video prioritized in 2003 ¬ Several new products Proactive market efforts ¬ Focus on customer segments ¬ New partnerships
Market trends Signs of increased activities Uncertain global economic development
Outlook 2003 Weak IT investments Long term growth potential for Video Strengthened positions Continued profitable development