Mobotix : Annual Report 2022/23

MOBOTIX AG Annual Report

October 01, 2022 to September 30, 2023

We create innovative solutions

BeyondHumanVision

MOBOTIX Innovations

YouTube Video

2

MOBOTIX AG Annual Report, October 01, 2022 to September 30, 2023

Letter to the Shareholders	4
MOBOTIX at a Glance	7
Highlights 2022/23	8
MOBOTIX Worldwide Successful	10
New Products and Solutions	14
Supervisory Board Report	20
Our Mission	25

Consolidated Management Report	26
Basic Information On The Group	26
Financial Report	32
Net Assets, Financial Position and Results of Operations	33
Risk Management	40
Opportunities and Outlook	43

Consolidated Financial Statement	46
Balance Sheet	46
Income Statement	48
Cash Flow Statement	49
Statement of Changes in Equity	50
Notes To The Consolidated Financial
Statements For The Financial Year 2021/22	52
Auditor's Report	64
Glossary	68
Contact And Disclaimer	70

3

Letter to the Shareholders

4	Christian Cabirol (CTO) • Philippos Antoniou (CSMO) • Klaus Kiener (CFO) • Thomas Lausten (CEO)

Dear MOBOTIX Shareholders,

Our business year 2022/2023 improved in several areas from previous business year 2021/2022. We have managed to strengthen our strategic focus on quality, cyber security, market certifications and solutions for specific vertical markets that will continue to be our key drivers for improved results.

We need, however, to secure the continued transformation of our company in world and market conditions dominated by constant changes, which also offer many new opportunities for

MOBOTIX.

Business and product innovations for our focused vertical markets are more important than ever, and and during the year, we analyzed the markets further with our customers and colleagues to fully understand how we can utilize the opportunities in the video market by understanding the needs and preferences together with our partners around the world.

Our business strategy is especially targeting healthcare, industry and utility markets based on recent product launches in cooperation with technology partners and on the new "ONE" platform which will be launched in Spring 2024. Feedback from recent partner conferences in DACH and EMEA in February 2024 has been positive and customer feedback will be further integrated into our R&D strategies.

MOBOTIX increased sales with 13% compared to previous business year and closed at EUR 63.2 million with an order backlog of EUR 0.5 million, nearly in line with our published guidance of EUR 64.0 to 66.0 million from August 2023.

Main growth derives from both increased sales of video surveillance cameras and increased software sales in video management systems and analytics. VAXTOR Group acquired in 2022 has contributed with software sales above expected level. EBIT has improved from EUR -7.5 million to EUR -3.9 million also due to an improved material and staff cost ratios.

Provisions of EUR 3.3 million have been established due to outstanding payments from some long-term partners. Due to these provisions, the EBIT is different from the published guidance of EUR -0.8 to 0.2 million from August 2023.

Increased investments will be implemented to secure further growth and expansion of VAXTOR. Several combined projects, for example license plate recognition at gas stations, complement both MOBOTIX and VAXTOR solution offerings and maximize the synergies of our both companies.

Also, other product areas contributed to the increase in vertical solutions sales e.g. MOVE range with more than EUR 6.0 million in revenues and P7 sales that have increased by 30% to EUR 13.5 million compared to prior year.

We have during the past business year investigated how we can better understand the needs of our customers e.g. in healthcare, industry, energy and other vertical markets, and we will utilize these learnings to focus even more and to develop our competitive advantages especially in these selected vertical markets.

We have experienced that several of our long-term partners have encountered challenges with their payments to us which have especially been impacted by increased interest rates. We decided as such to establish provisions of EUR 3.3 million while we are actively negotiating the overdue account receivables with our partners particularly in the Middle East and have agreed to payment plans which are followed up by our teams on a weekly basis.

During business year 2022/2023 two new Management Board members were appointed.

Dr. Christian Cabirol was appointed Chief Technology Officer, CTO as of 1 April 2023 and has been with MOBOTIX since 2016. Dr. Cabirol holds a PhD in engineering and has been leading the launch of our new "ONE" camera platform that we will bring to the market in spring of 2024.

5

Letter to the Shareholders

Mr. Philippos Antoniou was appointed as Chief Sales and Marketing Officer, CSMO as of 1 May 2023 with responsibility for all sales and marketing. Mr. Antoniou has been with MOBOTIX since 2012 and has managed sales with our partners and customers in most business regions.

Our new leadership program was also initiated during business year 2022/2023 with focus on development of leadership skills and competences of our Managers in Germany and international.

Thank you to all our Shareholders for your trust, and we look forward to welcoming you again to Langmeil on the 10th of May for our Annual Shareholder Meeting.

With my very best regards,

Thomas Lausten

Managers have participated, and further training modules are	Thomas Lausten • CEO of MOBOTIX AG
planned for leaders at different levels to secure they have the
best competences to lead the MOBOTIX colleagues in the next
steps of our evolution.

Our company is based on our German values with respect for all cultures, and we are proud of the 16 countries that our colleagues represent. MOBOTIX has already 15 colleagues who have been with the company for more than 20 years, 128 colleagues with more than 10 years at MOBOTIX while we have also welcomed new talents that have joined us recently in Langmeil and all over the world. The teamwork between departments and colleagues is inspiring and will be a key driver in our future deve- lopment.

Focus in BY 2023/24 is to streamline costs and investments in new customer platforms to optimize customer experience e.g. online configuration and ordering. We also continue to optimize the company and will further adapt to focus on especially core markets in DACH and Europe while partnerships with distributors and key account partners will be made even stronger in the US and APAC markets.

We will continue our mission of creating innovative solutions Beyond Human Vision with strengthening our good market reputation and position as a trustworthy manufacturer of high-quality video solution technology Made in Germany.

We thank each and every one of our talented and dedicated colleagues in Langmeil, Germany and around the world for the hard work and their commitment.

6

MOBOTIX at a Glance

Financial year (October 01 - September 30)	2022/23	2021/22	Delta %
Central Key Figures		TEUR		TEUR
Total operating output		65,572		60,257	8.82
Revenue		63,167		56,037	12.72
Of which outside Germany (%)		73		71
Earnings before interest, tax, depreciation and amortization (EBITDA)		334		-3871	n.a.
EBITDA margin (EBITDA as percentage of revenue)		0,5		6,4
Earnings before interest and tax (EBIT)		-3884		-7520	n.a.
EBIT margin (EBIT as percentage of revenue)		-5,9		12,5
Profit before tax		-5432		-7626	n.a.
Return on revenue (%) before tax		-8.6		-11.3
After-tax profit for the year		-5,409		-6313	n.a.
Cash flow from operating activities		2724		-4427	n.a.
Balance Sheet Figures		30.09.2023		30.09.2022
Equity		18,186		23,743	-23.40
Equity ratio (equity as percentage of total assets)		22.3		27.0
Total assets		81,490		87,962	-7.36
Non-current assets		30,687		30,068	2.06
Current assets		45,369		53,531	-15.25
Of which cash and cash equivalents		944		2271	-58.43
Employees

Number of employees (reporting date)(1)	345	369
Average number of employees (FTE)	325	341
Revenue per employee(2)	194	164
EBITDA per employee(2)	1	-11
EBIT per employee(2)	-12	-22
Key per-share figures	EUR	EUR
Dividend	-	-
DVFA/SG (Deutsche Gesellschaft für Betriebswirtschaft/Schmalenbach-	0.21	-0.20
Gesellschaft) cash flow(3)

1. Including four members of the Management Board; headcount
2. Based on the average number of employees
3. Based on an average of 13.187.660 shares
4. n.a. not applicable

-4,.9

18.51

n.a.

n.a.

7

Highlights 2022/23

October 2022

GIT readers award MOBOTIX M16 VdS thermal camera for fire protection

November 2022

MOBOTIX video technology 100 percent NDAA-compliant

January 2023

Konica Minolta relies on MOBOTIX to expand its global video solution services

March 2023

i-PRO, MOBOTIX and Konica Minolta strengthen strategic cooperation

April 2023

New CTO of MOBOTIX AG to start on April 01, 2023

8

Subscribe MOBOTIX

newsletter for free

May 2023

Reappointment of the MOBOTIX CEO and CFO and expansion of the Management Board to include a Chief Sales and Marketing Officer (CSMO)

June 2023

Milestone for business intelligence solutions: The new MOBOTIX SYNC software consolidates data and makes information usable beyond the video image

September 2023

Impressive solution for reducing false alarms - MOBOTIX wins the GIT SECURITY AWARD 2024 in the fire protection category

July 2023

MOBOTIX 7 Series cameras successfully pass U.S. NEMA 4X tests for ruggedness and reliability

9

MOBOTIX Worldwide Successful

Detect fires as early as possible, reliably minimize false alarms

Wegmüller Attikon, Switzerland

Success Story

Download

Wegmüller Attikon is the oldest wood and cardboard packaging manufacturer in Switzerland. The company manufactures special packaging, for example, for trade fairs and medical technology. 15,000 cubic meters of sustainably managed wood are processed yearly for individual export packaging alone.

Wood and cardboard are stored and processed in various ways everywhere on the plant site. This poses a potential fire hazard. The batteries of multiple machines, which give off heat and can overheat, also contribute to this. Monitoring technology must reliably monitor the extensive outdoor area and large warehouses. In addition, Wegmüller Attikon operates three wood chip silos, which, in addition to the fire hazard, have an excessively dusty environment. Forklifts and trucks move around the site. The aim is to prevent vehicles with hot engines, body parts, and exhaust systems from triggering false alarms during fire protection monitoring.

The MOBOTIX Thermal TR cameras (thermal radiometry) cover large areas and halls. In the wood chip silos, the MOBOTIX cameras were equipped with SITRAC air spray housings due to the enormously high dust content. With the Thermal Validation App developed in-house by MOBOTIX, hot mobile heat sources can be filtered out for alarming. This prevents alarms being triggered by forklifts and trucks and significantly reduces the false alarm rate.

Security in the plant is established around the clock and on the entire site. The system can be accessed at any time. The customer and MOBOTIX partner also have a MOBOTIX specialist via the Professional Service and thus additional security since the fire protection system is checked several times. This provides safety and the necessary freedom for carefree and successful work with the highest precision, just as customers expect from Wegmüller.

10