2005-06-09 Annual Report FY05 English

Transcription

Annual Report
Fiscal Year 2005
A Year of Success
- when it has to be right
Three-Year Overview
Profit & loss
Unless otherwise stated amounts for Continuing Operations
in CHF million/Year ended March 31
Sales
Year-on-Year Growth
Currency-Adjusted Growth
Gross-Profit
Gross-Profit Margin
Total Operating Expenses
Earnings before Interest and Taxes (EBIT)
EBIT Margin
Net Income/(Loss) – Continuing Operations
Depreciation of Fixed Assets
IAS 38 Amortization
Goodwill Amortization1
EBITDA
EBITDA Margin
Adjusted EBITDA2
Adjusted EBITDA Margin
Net Income from Discontinued Operations
Total Net Income
Basic EPS (in CHF)
Fully Diluted EPS (in CHF)
Balance sheet & cash flow
Net Working Capital
Net Working Capital/Sales
Total Assets
Net Debt 3
Net Equity
Debt/Equity
Cash Flow from Operating Activities
Tangible Capital Expenditures
Intangible Capital Expenditures
Total Employees
1 Goodwill amortization was discontinued in fiscal year 2005
2 Calculated as EBITDA less the amount of internally generated and
capitalized development costs during the period
Sales
(Continuing)
EBITDA
(Continuing)
14.3
7.9
–2.0
6.0
12.2
Net income
(Continuing)
0
60
100
30
40
0
150
20
10
0
128
10
300
99
20
60
80
80
450
773
600
FY03 FY04 FY05
Sales in CHF million
EBITDA in CHF million
Currency-adjusted
sales growth in %
EBITDA of sales in %
Consumer Products 8%
High-Definition Surveying 4%
Special Products 3%
51
750
Metrology 9%
5
40
689
112.1
16.0%
683.1
154.0
313.6
49%
59.1
(19.6)
(40.9)
2,388
GIS & Mapping 12%
50
650
121.1
16.4%
683.6
152.0
319.0
48%
59.7
(16.0)
(39.2)
2,461
Sales by division
12.3
120
Sales growth in %
127.9
15.8%
697.4
107.7
369.2
29%
93.8
(24.0)
(28.8)
2,398
Surveying & Engineering 64%
900
FY03 FY04 FY05
2003
650.3
(8.8%)
(2.0%)
336.3
51.7%
(326.5)
7.3
1.1%
(13.7)
21.1
31.1
21.9
80.3
12.3%
39.1
6.0%
35.6
21.9
9.80
9.78
16.6
–8.8
0
2004
689.1
6.0%
7.9%
352.6
51.2%
(324.8)
29.5
4.3%
5.2
18.0
34.4
16.9
98.7
14.3%
60.4
8.8%
0.4
5.6
2.54
2.48
3 Net debt is calculated as total debt, net of cash and unamortized
debt issue costs
–14
0
15.5
2005
773.2
12.2%
15.5%
409.9
53.0%
(338.7)
71.6
9.3%
50.6
18.8
37.6
–
128.1
16.6%
102.3
13.2%
–
50.6
22.27
21.57
20
FY03 FY04 FY05
In CHF million
Contents
Annual Report
A Year of Success
Summary
Highlights Fiscal Year 2005
Leica Geosystems Profile
Letter to Shareholders
Corporate Management
The Way Forward
Summary
The Road Ahead
Leadership through Innovation
Understanding Customers’ Needs
Quality Assurance
10
12
14
16
19
Corporate Responsibility
Summary
Statement of Responsibility
Commitment to Sustainable Development
Reducing our Environmental Footprint
Social Commitment
20
22
23
26
27
Operating Divisions
Summary
Divisional Overview
Surveying & Engineering
High-Definition Surveying (HDS)
GIS & Mapping
Consumer Products
Metrology
Special Products
28
30
32
34
36
38
40
42
Locations
Leica Geosystems Worldwide
Company Contact Information
43
44
Glossary
Definition of Key Terms
46
2
4
5
6
8
Words in italic are explained in glossary.
The corporate governance report and the financial results may be
found in the “Corporate Governance and Financial Report” attached
to this volume.
Contents
1
A Year of Succ
2
New products
When it has
Significant increase
drive growth
to be right
in profitability
The flood of new
products continued
again this year,
contributing to sales
growth of above
12%. Over 50% of
total turnover was
generated from products less than one
year on the market.
The company
launched its new
corporate identity
campaign during the
year, capturing the
essence of Leica
Geosystems’ promise
to all stakeholders –
Trust Leica Geosystems when it has
to be right!
With a robust sales
growth, an improved
gross margin, and
restrained increases
in operating costs,
profitability increased significantly
in fiscal year 2005.
Leica Geosystems provides
ess
solutions for customers’
entire workflow
First dividend to
shareholders to be
proposed
With record net
earnings, and a positive outlook for the
future, Leica Geosystems will propose
its first-ever dividend
payment to shareholders at the Annual General Meeting
on July 6, 2005.
3
Highlights
Fiscal Year 2005
Momentum for ADS40
April 2004: North West Geomatics Ltd in Canada adds a second ADS40
Airborne Digital Sensor to its range in response to a material surge in demand
for digital imagery from its clients.
Hong Kong expands
GPS network
May 2004: The Hong Kong Lands Department commissions Leica Geosystems
to set up six additional GPS reference stations and upgrade the existing GPS
network’s equipment and software.
Redemption of
high-yield notes
June 2004: Leica Geosystems redeems the entire principal of its 65 million euro
high-yield notes issue and refinances the notes with a new four-year-term loan.
Commencement of
T-Probe shipments
July 2004: Leica Geosystems begins shipments of the revolutionary new
armless and wireless T-Probe portable measurement system to key customers
in the automotive and aerospace sectors.
Launch of Leica Sprinter
August 2004: Leica Geosystems rolls out the world’s first low-cost, easyto-use electronic level. The Leica Sprinter combines high efficiency and unique
functionality with unparalleled user-friendliness.
Kempen Socially
Responsible Index
September 2004: Leica Geosystems is admitted to the Kempen/SNS Smaller
Europe SRI (socially responsible investment) Index.
USDA standardizes
on LPS
October 2004: The United States Department of Agriculture (USDA) Natural
Resources Conservation Service (NRCS) selects the Leica Photogrammetry Suite
(LPS) to support and streamline the National Resources Inventory, thus establishing LPS as the premier software tool for photogrammetric applications.
Frost & Sullivan Award
November 2004: Frost & Sullivan chooses Leica Geosystems to receive its
Industrial Automation Product Innovation of the Year award for the new Local
Positioning Technology, including the hand-held ultralight T-Probe and T-Scan.
Launch of HDS
educational program
December 2004: Leica Geosystems HDS, LLC (High-Definition Surveying)
announces the launch of a new Education Product Program (EPP), a formalized
purchase program for educational institutions that teach or conduct research
into the field of High-Definition Surveying.
Launch of SmartStation –
GPS and TPS in one
instrument
January 2005: Leica Geosystems launches SmartStation, the world’s first
all-in, high-performance total station with integrated GPS. Shipments began
in March 2005.
GPS reference station
software
February 2005: Leica Geosystems introduces GPS Spider V2.0, an integrated
software suite for controlling and operating single reference stations or
networks from a central location.
New facility in Singapore
March 2005: Leica Geosystems announces the official opening of its
Singapore-based global headquarters for leveling and alignment products.
4
Leica Geosystems
Annual Report
Who We Are and
What We Do
Leica Geosystems – when it has to be right
People who build houses or bridges, make maps
and design aircraft need measurements they can
rely on. With almost 200 years’ experience in
pioneering solutions to measure the world, Leica
Geosystems is best known for a broad range of
products that capture and analyze spatial data
easily and accurately, generate models quickly,
and are capable of presenting spatial information
in 3-D. People who use our products every day
trust them for their dependability, the value they
deliver, and our superior customer support.
Taking cutting-edge solutions to the world
Based in Heerbrugg, Switzerland, Leica Geosystems is a genuinely global company, with
tens of thousands of customers supported
by more than 2,300 employees in 21 countries
and hundreds of partners located in more than
120 countries around the world. In the course
of its history, Leica Geosystems has grown from
modest origins into the world’s leader in surveying innovation.
Pushing forward the barriers
with total solutions
Leica Geosystems is a total-solution provider,
working to supply our customers with systems
that address their needs precisely,
We give our cusall the way through from presale
tomers the tools
advisory services to after-sales
they need to do the
support. Many of our solutions
job quickly, precisely
feature cutting-edge approaches,
and reliably.
such as digital imaging and laser
scanning, but whatever the technology, they are
ultimately designed to enable our customers
to do their jobs faster and more efficiently than
before.
The leading position we hold in our industry is
based on a solid foundation of qualities which,
taken together, give us a unique position in the
world of geospatial systems. These are:
Service: We deliver outstanding service where
and when it matters. Our customers trust us
to keep their equipment up and running at all
times.
Innovation: We have a long history of firsts,
including the theodolite, the aerial camera
and the world’s first total station with integrated GPS – the SmartStation.
Precision and accuracy: We lead the field
in facilitating the capture of precise spatial
information that can be measured repeatedly
and consistently to specification.
Broad solution range: We offer the widest
choice of solutions for high-precision data
capture, fast modeling, easy analysis, and full
3-D visualization and presentation of spatial
information.
Reputation: The Leica brand is synonymous
with high precision, excellent quality and reliability, as well as first-class customer service
and organization.
Quality: Leica Geosystems products are
renowned for their dependability in the field.
Product applications
Leica Geosystems products and solutions are
widely used in:
Surveying, engineering and construction
Civil and structural engineering
Public and private infrastructure projects
Asset and facilities management
Aerospace, automotive and general industries
Mining and exploration
Agriculture and forestry
Mapping
Urban planning and cadastral applications
Disaster management
Our solutions in action
Some of the more impressive examples of our
solutions in action include:
The use of Leica Geosystems’ equipment and
software solutions in the planning and construction of the world’s highest bridge in the
south of France.
Quality control during the construction of
NASA’s space station, the Airbus A380 and
Renault’s F1 racing car, provided by Leica
Geosystems’ laser trackers and photogrammetry.
The use of Leica Geosystems’ GPS technology,
photogrammetry, total stations and machine
guidance systems to ensure completion of
Hong Kong’s Chek Lap Kok Airport in record
time.
A Year of Success
5
Letter to
Shareholders
When it has to be right. This simple phrase is
packed with relevance for our company. At the
heart of the statement is trust; trust in Leica
Geosystems by our customers, employees, business and community partners, and investors.
When it has to be right also means commitment.
Commitment to providing our customers with
the right products, services and solutions, so
they can succeed in critical missions, meet tight
schedules and enhance productivity. In this year’s
Annual Report, we will highlight key elements
of this commitment, ranging from product innovation through to our customer care program.
A record year
The financial success of this year, a record
achievement in many respects, was made possible by the careful groundwork laid several years
before. With significant investments in research
and development, we now offer one of the most
comprehensive baskets of products and solutions
in our industry. In our current portfolio, customers
have the choice of solutions that span the geospatial imaging chain – from sensors that capture
data in varying degrees of density, through
to software solutions and service offerings that
enable customers to work with up to terabytes
of spatial data.
During the year, we again launched many new
products onto the market, including the SmartStation in March 2005. The SmartStation is a
milestone in the surveying industry, and is an
extension of our successful System 1200 family,
which was a material contributor to our business
growth this year. Other products include the
new Local Positioning Technology products from
Metrology, an expanded offering of constructionoriented products, GPS reference station software, and new machine automation solutions,
particularly in the mining sector.
6
Leica Geosystems
Annual Report
Expanding our customer base
We continued to gain the trust of many new
customers during the year. This is evidenced by
local-currency growth in several of our businesses
at multiples of historical market growth rates.
In Surveying & Engineering, growth in our highend TPS and GPS businesses was particularly
strong, further supported by solid demand for
our low-cost leveling and alignment products.
Our move of the leveling and alignment business
unit to a new facility in Singapore should enable
us to make deeper inroads in Asia, a key growth
region for Leica Geosystems.
Geographically, we continue to hold a leading
market position in Europe, where we recorded
sales growth of 10% this year. We see further
opportunities in Europe, particularly in the
emerging markets of the east, which will complement our solid presence in Western Europe.
Our strongest growth regions this year, however,
were the Americas and Asia Pacific, where we
realized top-line growth rates approaching 30%
in local currency. Growth in these regions was
bolstered by a combination of a strong product
offering and intense marketing initiatives. Apart
from this, new organizational structures added
the local management expertise needed in these
markets. We expect to see continued strong
growth in both regions in the upcoming year.
Our expanding presence in China, led by a dedicated member of management reporting to the
CEO, underscores our commitment to this region.
Outstanding sustainability ratings
Responsible corporate citizenship is part of an
ensemble of values held by Leica Geosystems.
In last year’s Annual Report, we presented our
first comprehensive Corporate Responsibility report. We plan to prepare such a report once every
two years, with an update in alternate years.
In this year’s Annual Report, an update year, we
present several interesting examples of how solutions from Leica Geosystems contribute to our
global sustainability efforts. We also summarize
achievements and opportunities in this area.
We are pleased to report that many international
rating organizations with a focus on sustainable
business practices awarded Leica Geosystems
ratings above our industry average this year, and
numerous sustainable investment funds have
now included our shares in their investment portfolios.
Strong results lead to first dividend
Success in our markets this year led to a record
financial result. Sales in Swiss francs were CHF
773.2 million, a growth of 12.2% in Swiss francs,
and 15.5% in local currencies. Growth in the
top line as well as the gross margin gave us the
means to make additional investments in research and development and product-marketing
programs, and still increase our earnings by a
multiple of the growth in sales. Our EBITDA
margin increased to 16.6% of sales, and our adjusted EBITDA (which removes capitalized R&D
expenditures) rose to 13.2%. The positive benefits of no goodwill amortization, falling debt
levels, lower interest rates, and a beneficial tax
structure supported the growth in operational
earnings, giving rise to net income of CHF 50.6
million, the highest level in our company’s
history.
With this performance, and our growth expectations for the future, we will propose to pay the
first dividend to shareholders since the initial
public offering in 2000 of CHF 4 per share. This
proposal will be put forward to shareholders
at the Annual General Meeting on July 6, 2005.
Solid outlook for 2006
Looking ahead to fiscal year 2006, we expect to
have another solid year of sales growth. Earnings should also continue to grow above the rate
of sales.
In closing, we would like to thank all of our stakeholders for your continued interest in Leica
Geosystems. We look forward to another exciting
year and know that when it has to be right, you
will place your trust in Leica Geosystems.
Heerbrugg, June 9, 2005
Mr. Mario Fontana
Chairman of the
Board of Directors
Mr. Hans Hess
President and
Chief Executive Officer
A Year of Success
7
Our Mission
and Values
Mission
When it has to be right, customers can
trust Leica Geosystems to provide innovative solutions and services for the capture,
modeling and visualization of 3-D spatial
information.
Corporate Management
From left to right:
Eric Poll, Corporate VP Strategic Marketing,
Walter Mittelholzer, President Metrology
division, Aad van Vliet, Chief Human Resources
Officer, Klaus Brammertz, President Consumer
Products division, Christian Leu, Chief Financial Officer, Erwin Frei, President HDS division
(resigned as of May 10, 2005), Hans Hess,
President and Chief Executive Officer,
Robert Morris, President GIS & Mapping division, Clement Woon, President Surveying &
Engineering division
Values
Our company is guided by the six fundamental values that comprise our Code of
Conduct.
Customer orientation
Commitment to quality
Open and constructive communication
Integrity and trust
Innovation
Entrepreneurial spirit
These values are intrinsic to our daily
activities and reflected in the way we:
Serve our customers
Produce and deliver our products
Communicate internally and externally
Remain responsive and competitive
through innovation
Strive to maintain our entrepreneurial
spirit as we grow, and lastly
Conduct ourselves as suppliers, employees, and corporate citizens
Experienced
Leadership
Leica Geosystems can justly claim to be a global
company. Apart from the international scale
of our operations, the Corporate Management
Team is made up of individuals of diverse national
origins, which guarantees a cosmopolitan,
interdisciplinary approach to our business. The
Corporate Management Team, comprising four
corporate officers and five divisional presidents,
hails from Europe, Asia and the Americas — not
coincidentally the most strategically important
regions for the company’s operations.
Technical degrees are the most common academic background in the team. Three members
of the team hold advanced engineering degrees,
as well as one doctorate in Astronomy. The
remaining members hold degrees in Human Re-
8
Leica Geosystems
Annual Report
sources, Finance and Business Administration,
Social Science and Forestry. Four individuals on
the team have MBAs.
in-field surveying and mapping, corporate finance, business development, marketing and
sales, and human resources.
The industrial experience of the team complements their varied educational backgrounds.
Several members of the team have spent a significant amount of their professional careers
in our industry. Complimenting those with direct
industry experience, other team members contribute their experience in the consumer products,
pharmaceutical, chemical and computer industries. During their respective careers, members
of Corporate Management have worked in a
broad array of disciplines, gaining experience in
product development, product management,
The Corporate Management Team, whose members have been with the company for an average
of 10 years, has jointly seen Leica Geosystems
through the challenges and accomplishments
of the recent past. The team, together with the
Board of Directors, has been responsible for
achieving a successful turnaround in our operations over the past few years.
Corporate Management is assisted in its work
by the 120 members of Senior Management, who
are located in 21 countries around the world.
A Year of Success
9
The Way Forwa
10
Leveling and Align-
Innovation has a
Spatial information
ment unit gets new
tradition at Leica
goes digital
home in Singapore
Geosystems
Leica Geosystems
opened a new
facility in Singapore
where it will headquarter its Leveling
and Alignment
business unit, part
of the Surveying &
Engineering division.
Leica Geosystems
is synonymous with
Swiss precision,
quality and reliability,
but it also stands
for considerable
innovative power.
The SmartStation is
a perfect example.
Today, Leica Geosystems enables
spatial information
to be captured,
stored and accessed
in digital form, thus
catching the interest
of many exciting
new partners.
Leica Geosystems’ solutions
transform reality into geo-
rd
metrically accurate drawings
Customer care
Streamlining
initiative is king
our customers’
Leica Geosystems’
customer care initiative gets off the
ground this year,
leveraging the company’s reputation
for outstanding
customer service to
further increase
customer loyalty in
the future.
workflow
Leica Geosystems
offers scaleable, customizable solutions
that enable customers to automate
processes throughout the Geospatial
Imaging Chain and
thereby improve
overall efficiency.
11
The Road Ahead
The spatial information industry is attractive and
dynamic. It provides individuals, enterprises and
governments with information about objects; it
tells us where and what they are, how they look
and when they change. Spatial information is
no longer the exclusive domain of professionals,
such as surveyors, engineers and city planners.
Many of us use it everyday in our car navigation
systems or for location-based services. The
increasing use of spatial information in an expanding array of applications is what makes our
business so exciting. And Leica Geosystems is
equipped to play a major role.
The changing face of our market
So, what are the trends that will fundamentally
change our industry? One of them is increasing
digitization. The confinement of spatial information to maps and plans is history.
The increasing use
Today, this information is required
of digital informain digital form, so that it can be
tion has transformed
stored in databases, processed and
the face of the
shared over the Internet. This, in
industry and emanturn, makes it available for many
cipated more and
new applications, and is one of
more users.
the reasons why new players such
as Google, Microsoft, Oracle and other large IT
companies have entered the industry. Leica Geosystems is working with many of these companies and, again, is well positioned to explore
the potential of this new digital world.
Another salient feature of today’s industry is
the burgeoning need for spatial information that
is accurate and up to date. For today’s consumer,
the idea of using an obsolete map in a navigation
system is unthinkable. Leica Geosystems’ GPS
technologies can pinpoint any position on the
surface of the earth to an accuracy of a centimeter, while the company’s laser technologies
can determine the height of a building with millimeter accuracy in seconds.
However, perhaps the most exciting development
in our industry is the trend toward the fourth
dimension. Consumers increasingly expect 3-D
spatial information, preferring it to complicated
12
Leica Geosystems
Annual Report
2-D maps and plans. Apart from an object’s
location and appearance, many users now need
to understand how it changes over time: in other
words, the fourth dimension. Private and public enterprises have a real interest in knowing
whether the structure of a tunnel or a dam has
changed and if it is still safe. Or understanding
the development of cities and villages and their
impact on the environment. Leica Geosystems
offers the solutions needed for these tasks.
Our strategy for shareholder value
Leica Geosystems creates value for its shareholders through profitable internal and external
growth. However, apart from continuing to offer
the widest range of technologies in the industry
for capturing spatial reality, Leica Geosystems
is now increasingly supplying state-of-the-art
software to process and model this informationrich data. Leica Geosystems already supplies
solutions for applications such as building infrastructure (roads, railroads, tunnels, bridges and
houses) as well as other key segments in land
surveying, architecture, mapping, and mining. As
we expand in these areas, the role of software
will be increasingly important.
Strategic partnerships, too, will be essential if
we are to offer attractive solutions for entire
workflows of targeted segments. In the future,
we will continue to focus on promising market
segments and dynamic geographic regions that
offer profitable, above-average growth. At the
same time, we will continue to offer a wide variety
of distinctive, customer-oriented services on a
global basis.
Leica Geosystems is in an excellent position to
capitalize on the emerging trends in our industry.
The opportunities are compelling, but require
focus to be effective. Our strategy is a measured
one, which leverages the strength of our existing
portfolio of sensors and software solutions,
as well as strategic partnerships and selected
acquisitions, to develop and expand into new
vertical market segments and service offerings.
Leica Geosystems Technologies Pte Ltd, Singapore,
officially opened its doors on March 31, 2005
Leica Geosystems
Technologies Pte Ltd:
A Company-Owned
Base in Singapore
After 34 years in the city state, Leica Geosystems AG finally established a company-owned
operation in Singapore. Its name:
From its Singapore
Leica Geosystems Technologies Pte
base, Leica GeoLtd. Prior to this, Leica Geosystems
systems Technoloand Leica Microsystems (based
gies is ideally placed
in Wetzlar, Germany) held a 50/50
to serve the Asia
interest in a business that Leica
Pacific region.
Geosystems has now sold off. Leica
Geosystems Technologies is part of the Surveying & Engineering division, which in turn belongs
to Leica Geosystems AG.
Key activities
During the second half of calendar 2004, the
Surveying & Engineering division was subdivided
into four business units, and the Leveling and
Alignment unit set up in Singapore. Leveling
and Alignment is responsible for the running of
Leica Geosystems Technologies in Singapore
and maintains a research and development unit
in Grand Rapids, Michigan, USA. The new com-
pany’s range of operations will have a widereaching scope. These include its functions as:
The main competence center for research and
development into digital and optical leveling
and laser products
The global headquarters for product engineering and design
A global base for driving worldwide sales
together with the marketing of digital and
optical leveling and laser products
The main assembly plant for leveling and
alignment products, such as optical levels,
digital levels, rotating lasers and pipe lasers
An assembly plant for other surveying and
engineering products, including Terrestrial
Positioning Systems (TPS) and accessories
A main sourcing center for the Surveying &
Engineering division’s activities in Asia
A logistics center for the management of
worldwide distribution and the customization
of products manufactured in Singapore
Plant and products
The new facility covers a total area of 50,000
sq. ft. and is located at Singapore’s Woodlands
East Industrial Estate, headquarters for the
Asia Pacific operations of many multinationals.
The cost of setting up the plant ran to some
SGD 6 million, with an additional SGD 6 million
planned for research and development each
year. This business unit currently employs some
150 people worldwide, with over 100 of them
based in Singapore. There are plans to ramp up
the Singapore workforce to 140 over the next
two years.
Since going onstream, Leica Geosystems Technologies in Singapore has developed, engineered
and manufactured a number of exciting and
innovative products for the global market, one
of the more notable being the Leica Sprinter,
holder of numerous patents and the world’s first
affordable and easy-to-use electronic level. The
Singapore operation is backed up by the Research and Development Unit in Grand Rapids,
Michigan, USA. This unit recently developed the
Leica Rugby 300 SG Grade Laser and the Rugby
400 DG Dual Grade Laser, both of which are
used primarily in the construction industry and
manufactured at the new facility in Singapore.
The Way Forward
13
Leadership
through
Innovation
developments. We also conduct focused research
and development activities in other locations,
the United States, Singapore and Australia. Our
multidisciplinary and multinational R&D team
includes mathematicians, physicists, and geoscientists. The company also cultivates a longstanding relationship with the Swiss Federal
Institute of Technology as well as many other
research centers around the world.
The technologies and the competence
to get it right
Leica Geosystems has a clearly defined mission:
to be the world’s leading provider of innovative
solutions for capturing, modeling, analyzing and
visualizing spatial data. Strategic acquisitions
and continuous product development have created
a comprehensive technology and product portfolio that gives our company a unique position
in our industry.
Leica Geosystems holds more than 1,000 patents and has a full product pipeline. The number
of innovations is at an all-time high, demonstrated by the fact that 50% of our current year’s
revenue was generated by products less than a
year old.
Over the years, the company has developed
a number of technologies and software applications that are now core to our products and
solutions. These include, among
At Leica Geosystems,
others, EDM (Electronic Distance
we have a history
Measurement), high-precision angle
of pushing forward
measurement, GPS technology,
the boundaries of
3-D laser scanning and point-cloud
science and technolanalysis. Far-reaching software
ogy for geographical
expertise, coupled with extensive
applications.
research and development, are essential if the company is to continue generating
innovative, market-leading products.
Leica Geosystems’ innovation efforts aim at one
single goal: to understand and support customer
workflow. This has resulted in a product portfolio,
a service offering and a comprehensive range of
solution packages that are unique to the market.
An industry pioneer: where innovation
has a tradition
Leica Geosystems is synonymous with Swiss
precision, quality and reliability; but it also stands
for considerable innovative power.
Our corporate culture is defined by innovation
and a constant focus on increasing customers’
productivity. Contributing towards this are some
of the world’s most highly qualified specialists
and multidisciplinary engineers. A core team of
experts at our Corporate Technology Center in
Heerbrugg fosters and supervises cross-divisional
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Leica Geosystems
Annual Report
Leica Geosystems has consistently been at the
forefront of technological development in our
industry. Our development efforts are focused on
improving productivity: whether it is enhancing
the speed, quality and precision of instruments
to increase surveying effectiveness, leveraging
new technologies to capture and analyze larger
amounts of spatial information, or devising ways
of handling large quantities of spatial data effectively. In the 1980s, the use of lasers made its
way into the industry. In the 1990s it was GPS.
More recently, laser scanning appeared on the
scene. The latest developments include the move
to the fourth dimension and the digitization of
geographic information.
The digital revolution
Today’s laser scanners capture and present
accurate, as-built information that can be processed instantaneously on a PC. Projects are
completed faster, output is more precise. Deferring calculations to a later date is simple and
unproblematic. Three-dimensional
Digitization has excomputer models are created in
pedited and simplivirtual reality, featuring all the comfied the development
plexities of “the real thing.” They
process like nothing
are comprehensively tested in
else before it.
simulations, before anyone even
reaches for a tool. Computer modeling creates
a virtual world that permits developers to move
at will within the model and subject it to comprehensive testing and simulation.
Creating simulations that show how well a
building will blend into its environment, how an
aircraft will perform in flight, how a new city
overpass will affect the flow of traffic or how
fauna and flora will develop over time: such
tasks, to name just a few examples, are now
easier to perform than ever before.
Realizing a Dream –
the SmartStation
Point-cloud generation, aerial photographs,
simulations and similar applications in the digital
realm represent terabytes of data. Leica Geosystems is changing to meet its customers’ needs
as more and more clients demand all-inclusive
hardware, software and services solutions.
Dr. Craig Hill, Director of
Today, some 80% of our company’s turnover
comes from equipment sales. However, it is
estimated that in the next few years, software
and related services will account for up to 35%
of sales. The company is moving in that direction even now with products like Cyclone, the
point-cloud process and data management software, the Leica Photogrammetry Suite for geospatial imaging and SpiderNET, the GPS network
controller. The software required to process
large amounts of data is created in cooperation
with data storage and database specialists,
such as Oracle.
Brisbane Machine
Automation Business
Leica Geosystems’ investments in the Asia Pacific
region included a move to new premises at
Dutton Park, Brisbane, Australia, in March 2005.
Following the acquisition of Tritronics and the
expansion of activities for machine automation
and site-monitoring systems for mining and
construction, existing facilities were no longer
adequate. The move has also provided an opportunity for Australia-based sales and support
personnel who work for other divisions or operating units of Leica Geosystems to be colocated.
The new premises provide a stimulating environment for R&D projects in mine and construction
machine automation systems, as well as a demonstration and training center for a wider range
of Leica Geosystems products.
Survey Applications,
Business Unit Surveying
Making the SmartStation concept
a reality was a long-time dream for Dr. Craig Hill,
who began a doctorate in 1993 focusing on the
integration of GPS and TPS technologies in a single
instrument. Dr. Hill believes the new development,
which is simple to use and provides an affordable
entry point to RTK GPS technology, will materially
improve surveyors’ efficiency.
SmartStation represents a significant opportunity
to encourage the use of RTK GPS by professionals
who until now have avoided the technology. Furthermore, SmartStation ensures that the System
1200 family holds an unequalled market position
because TPS1200 is the only total station incorporating GPS technology. This unique feature, coupled
with TPS1200’s many other leading attributes,
should continue to be a compelling reason for existing, as well as new, customers to choose Leica
Geosystems’ surveying instruments.
For Dr. Hill, who was honored to play a key role in
the development of SmartStation, completion of the
project meant that a long-held vision had finally
become a reality.
The Way Forward
15
Understanding
Customers’
Needs
Although different organizations make use of
geospatial information in many different ways,
as determined by their own specific needs, their
ultimate objective is always the same: to have
the data required to make betterGeospatial imaging
informed decisions. In order to fadescribes our
cilitate the decision-making process,
customers’ worksome users need maps or topoflow and defines
graphical models, while for others
our approach to the
the ideal solution is a fly-through,
industry.
3-D scene. And although the creation of these products and services is driven
by a wide variety of needs, the genesis of each
and every one is the same: geospatial imaging.
A clear relationship exists between the many
individual activities that constitute a project,
from data capture, spatial referencing, measuring
and analysis through to presentation. Ideally,
each step will flow smoothly into the next. Each
component in the process should likewise blend
seamlessly with the others in pursuit of the project’s objectives: to capture the required image,
Wendy Watson, Vice President
of Product Management & Marketing, GIS & Mapping division
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Leica Geosystems
Annual Report
reference the image to obtain accurate coordinates, measure it to extract specific data, analyze
the data to discover relationships between image
features, and present the data in a format that
will enable good decision making. In the industry,
we call this workflow the Geospatial-Imaging
Chain.
Empowering customers for
greater independence
There used to be a significant gap between surveying and mapping, but in recent years, this has
become noticeably smaller. Leica Geosystems
is working to create products that fuse technologies from different disciplines within the geospatial industry and achieve data interoperability.
Such products empower customers to execute
processes themselves which they have traditionally outsourced and enable different systems
to share information. The emergence of products
that service all the links within the GeospatialImaging Chain is significantly bridging the gap
between disciplines and, at the same time, simplifying workflows.
While the use of geospatial information has
grown organically in enterprise environments,
there is always a risk of hindrances to productivity, as organizations find themselves in a
juggling act, trying to figure out how
By bringing different
to share data. Data interoperability
disciplines closer
is a necessity in all project workflows
together, we are
that employ more than one hardgiving customers
ware or software solution. If we are
more freedom.
to streamline production, we need
to integrate workflows and achieve data interoperability between systems. Only by doing this
can we push production to its highest attainable level while maintaining the necessary high
standards of accuracy.
Boosting efficiency and decision making
To streamline the geospatial-imaging workflow,
organizations can take advantage of Leica Geosystems’ scaleable, customizable imaging and
software solutions. These tools automate the
Geospatial-Imaging Chain from beginning to end,
with the result that projects can be completed
more efficiently and cost-effectively, and with
higher precision. The ensuing improvement
in workflow furnishes decision makers with the
information they need to reach decisions more
quickly and accurately, and makes a significant
contribution to overall project success.
The Customer Care
Program
Leica Geosystems recently launched a Customer
Care Initiative. In the interview below, Dave
Koster, Vice President of Customer Support and
Service of the Metrology division, explains what
the project is all about and provides a rundown
of progress so far.
What is the aim of the Customer Care
Initiative?
Dave Koster: Mainly to increase customer loyalty
by boosting after-sales satisfaction. If we can
help our customers get the most out of the instruments they buy from us over the product’s
entire life cycle, they will be more loyal. That in
turn helps us to grow and stand out in today’s
markets. We see it as a major opportunity.
Who is involved in the program?
It’s a corporate project involving service and
support managers from various divisions as well
as a controller and a human resources consultant. But the drive to get things done comes
from the divisions. Ultimately, everyone will
play a part.
What are the key elements of the
customer care program?
We are targeting our efforts on six key areas:
Defining a clear after-sales strategy valid
across the entire company.
Strengthening service and support management in the various divisions.
Creating a clearly defined, comprehensive
service and support portfolio.
Benefiting from information and knowledge
management internally and with key or contract customers.
Further expanding the possibilities of remote
access services.
Finally, developing ideas to enhance customers’ productivity using our applications
expertise.
Dave Koster, Vice President of Customer
Support and Service, Metrology division
in new ideas. And there’s been a general increase in awareness within the company of the
importance of customer care.
How do Leica Geosystems customers
notice the difference?
Next to customer care products that really fit
our customers’ needs, and the faster service we
provide, the general attitude towards service
has received more attention in various parts of
our company. The way we answer the phone
or how we offer assistance makes all the difference. Whenever we overachieve our customers’
expectations, their loyalty will increase. That’s
a basic mindset, and we’re working on making
this even better.
What else do you have in the pipeline?
The next step is to standardize the look and feel
of our customer care, so whether the customer
owns a DISTO™, a GPS instrument or an HDS
scanner, the service contracts, support calls and
invoices are always the same. We’re also looking at further improvement of our customer services, making them as convenient as possible.
By giving our customers the after-sales care they
deserve, we believe we can really make a difference!
Can you tell us how the project
has been progressing?
We make much better use of synergies between
regions and divisions, and have employed a
number of customer care professionals to bring
The Way Forward
17
Customer Needs and
Satisfaction Survey 2004
Since 1995, Leica Geosystems has been conducting customer-based research to help us to
understand and appreciate customer needs and
perceptions and to evaluate our performance.
The research also involves noncustomers and
employees. The survey provides
The results will help
insight into the key issues our
us build on our succustomers and noncustomers face
cess and differenwhen selecting a supplier in our
tiate ourselves from
industry. It also assists us in underour competitors.
standing what their perceptions are
of Leica Geosystems as a supplier, their levels
of satisfaction and what is important to them.
In addition, the survey provides a basis in which
we can measure our own performance against
that of our competitors.
In January 2005, we completed the latest survey 1,
which researched customers’2, noncustomers’3
and employees’ perceptions on satisfaction,
brand quality and supplier performance. In total,
1,029 interviews were completed across five
countries in Europe, Asia and America and five
key divisions of Leica Geosystems.
Performance on three key measures
9
8
7
The customers and noncustomer groups that
participated in the survey included civil structuralengineering surveyors, cadastral surveyors, land
surveyors, aerospace and automotive manufacturers, industrial measurement, GIS and spatialmapping specialists, mining and exploration,
education institutions and universities, research
organizations and architects, builders and realestate professionals.
As in the 2002 survey, Leica Geosystems’ performance in the last two years generally remains
ahead of the average for the competition. We
recorded a very high KPI score which measured
our performance against 15 attributes relating
to customer needs. Leica Geosystems generally
performs well on the attributes regarded as most
important in driving customers’ overall satisfaction. We maintain a competitive position on the
four most important attributes – reliable products,
high-quality technical support, responsiveness
to requests and prompt provision of repairs/
replacements. We will continue to do everything in our power to meet the needs of our
customers.
Our customers are generally very satisfied with
our performance. On average, Leica Geosystems
recorded a high score for overall satisfaction.
Similarly, our customers are also very loyal to us,
demonstrating generally very high levels of intention to repurchase from us in the future and
a strong willingness to recommend us to professional colleagues. Our brand name continues to
be very well respected and a core asset to the
company with a very strong brand quality rating.
6
5
4
3
2
Overall
satisfaction
Likelihood
to recommend
Leica Geosystems
7.2
8.1
7.3
8.1
7.5
0
8.0
1
Likelihood
to repurchase
The results of the survey will help us to build on
our success, to differentiate ourselves from our
competitors and to address those areas where
we need to improve. They will be incorporated
into the development of strategic business,
product, marketing and communication plans.
All competition average
1 Survey fieldwork was conducted by two independent market research
companies on behalf of Leica Geosystems. Fieldwork was conducted
between October 2004 and January 2005. Twenty-three survey interviews were conducted face-to-face, and 911 by phone. An additional
95 surveys with Leica Geosystems employees were self-completed
via email. Leica Geosystems customers were informed that Leica Geosystems was the survey sponsor before giving their answers. Noncustomers were informed at the end of the survey. Data provided by
respondents requesting anonymity remained completely confidential.
The total sample was provided by Leica Geosystems and the survey
data were analyzed for Leica Geosystems’ proprietary use.
2 Approximately 70% of those interviewed used Leica Geosystems
products.
3 Approximately 30% of all interviews were conducted with those who
do not use any products from Leica Geosystems.
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Leica Geosystems
Annual Report
Philip Benz is one of the first
links in the Leica Geosystems
quality assurance chain
A Firm Commitment to
Quality Assurance
“Leica Geosystems is committed to focusing the
organizational structure, its processes, daily
activities and ideas towards achieving customer
satisfaction and meeting customer expectations.”
This statement, taken from our corporate quality policy, is no empty phrase. In the past fiscal
year, we streamlined many of our
We spare no effort
operational processes and leverin our quest to
aged various synergies. In addition,
guarantee quality
several of our organizations outside
at every stage
Switzerland were ISO-9001:2000of the value chain.
certified under SQS (the Swiss Association for Quality and Management Systems),
or are well on the way towards receiving certification.
Progress made with the improvement of product
quality and reliability was likewise very satisfactory. New products and prototypes are regularly
reviewed, even at the early stages of development, which has enabled us to reduce time to
market and achieve a high first-pass yield in the
series manufacture. This means individuals in
R&D or process engineering do not waste their
talents on troubleshooting and can use them
more productively developing innovative new
products.
Suppliers and partners can also have a major
influence on the quality and reliability of our
products. We have a clear-cut evaluation process
and a selection of criteria to help us choose partners who fully meet our requirements for high
quality and reliable products. Internal process
audits and external audits at suppliers’ premises
carried out the previous year provided a clear
indication of the improvements and corrective
action required.
One other key factor in successful quality
management is ongoing employee training. Apart
from ensuring that everyone understands our
quality objectives and benefits from lessons
learned, we use train-the-trainer methods and
integrate new employees as quickly as possible.
All these efforts have helped us in our quest to
boost business excellence at all levels.
The Way Forward
19
Corporate Res
Changing the
Making a real
Commitment to the
focus of our
difference
highest standards of
responsibilities
Our products help
to make life safer,
have an important
cultural role to play,
and make a significant contribution
towards preserving
the treasures of
nature.
corporate citizenship
Our commitment to
corporate responsibility remains firm,
and has broadened
to include even
greater responsibility
for our employees’
well-being, social
activities and involvement in matters
of public interest.
20
We are untiring in
our commitment to
the highest standards of responsible
corporate behavior
in how we deal with
our customers, our
partners, our staff
and our investors.
ponsibility
Geospatial solutions from
Leica Geosystems facilitate
responsible urban planning
on any scale
21
Statement of
Responsibility
Leica Geosystems is acutely aware of its responsibilities towards the environment, society and
future generations. We have a long tradition of
environment-friendly, socially and economically
responsible corporate behavior, and are conscious that sustainability is the linchpin of all our
actions. The focus of our efforts shifts continually in response to environmental, technological,
social and economic change. The
We have a firm
needs and expectations of our
commitment to
stakeholders likewise reflect these
all stakeholders.
developments and spur us in our
efforts to find the most responsible ways of
achieving success. Globalization has also expanded our sphere of influence, and today we are
in a position to influence social developments in
emerging markets through our employees and
suppliers abroad.
Over the years, our commitment to sustainable
development has undergone a significant shift.
As in the past, we remain firmly committed
to environmental and economic optimization of
our premises and production processes, but
our concerns have expanded to include greater
responsibility towards our employees, our social
activities and our involvement in matters of
public interest. One example is our appointment
of integration managers to help new employees
settle into their new professional and private
environments. Finally, it is vital that our customers, our employees, our suppliers and our
shareholders see the value of buying our instruments, of working with us and of investing
in our company.
Top management recently defined future strategy in a review that foresees the introduction
of a more general social policy, incorporating
compliance with human rights, to complement
our existing human resources strategy and code
of conduct. Although the group already observes
these principles, we feel there is a need for
a formal statement to monitor adherence. This
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Leica Geosystems
Annual Report
will be part of a more general supplier policy
and supported by newly defined environmental,
social and health/safety-related targets.
Apart from making our values and principles
central to everything we do, we believe it is important for us to communicate our successes
and results to the outside world. We achieve this
by publishing a separate and more detailed report on corporate responsibility every two years.
The next one will appear in 2006.
Sustainability ratings
Encouragingly, our efforts have received wellabove-average marks in sustainability assessments. The Zurich Kantonalbank, for instance,
awarded us an A (on a scale of C to AAA), while
Inrate rated us 11% above the average for our
sector in its ecological rating and 26% above
the average for our sector on social issues. Many
socially responsible funds — including the
Kempen SNS Smaller Europe SRI Index, the first
sustainability index for smaller European companies – now invest in our stock.
Commitment to
Sustainable
Development
Mitigating the Effects
of Natural Disasters
Communities living under the threat of natural
disasters such as earthquakes or hurricanes, together with the agencies set up to monitor them,
make widespread use of Leica Geosystems equipment. The Emergency Operations Center (EOC)
in Berkeley, California, for example, is now better
prepared to mitigate the effects of a disaster
and obtain federal matching funds more quickly
because it makes use of HAZUS, a GIS-based
hazard loss estimation program produced by the
Federal Emergency Management Agency FEMA.
Until 2002, the city used orthophotographical
scanning, which was slow and inefficient. This
has since been replaced by Leica Geosystems’
ERDAS IMAGINE®, which has helped create a centralized raster data repository that gives users
fast, simple access to seamless imagery via
customized ArcIMS map services. The city’s EOC
uses HAZUS shaking models to estimate the impact of an earthquake in terms of likely injuries
and deaths, building collapse, need for shelters
and resulting financial damage.
Cities like Berkeley situated on earthquake fault
lines are now better equipped to protect themselves against the devastation caused by natural
disasters
providing section corners in digital format. Officials used this imagery to help them determine
the scale of damage and allocate recovery resources more accurately. GIS and mapping efforts
following natural disasters, such as hurricanes,
greatly support the people and organizations
providing relief, helping to rebuild homes and
lives.
In 2004, hurricanes hit the southeastern United
States particularly hard, Florida bearing the brunt
of their force with no fewer than four hurricanes
in the space of six weeks. In the wake of the
damage inflicted by the strongest
Leica Geosystems
of them, Charley, Charlotte County
contributes to dicommissioned EarthData to acquire
saster relief efforts
aerial imagery of the region to supin many ways.
port relief efforts. EarthData used
the Leica ADS40 Airborne Digital Sensor at a
height of 7,800 feet for the job. County staff and
EarthData personnel customized the project,
resolved issues associated with setting control
points in and around mangrove swamps, and
completed the digital orthogeneration training.
EarthData delivered orthotiles encompassing
township-and-range sections, with the county
23
and artists working in the sixth century managed
to construct a freely suspended dome almost 56
meters high and 31 meters wide, supported only
by four pillars. Considering the technical facilities
available at the time, many experts consider the
building to be one of the boldest feats of construction ever achieved by human hand.
For almost 1,500 years, Hagia Sophia in Istanbul,
built between 532 and 537 AD, confounded experts
attempting to discover the secret of its design;
now, the conundrum has been solved
Unraveling the Mystery of the
“Eighth Wonder of the World”
Almost one and a half thousand years after its construction in the center of ancient Constantinople,
the great church of Saint Sophia has finally divulged the secret of its ingenious design. Volker
Hoffmann, professor at the Institute of Art History at the University of Bern, deciphered the
mystery using state-of-the-art HDS™ laser technology from Leica Geosystems. Some of his
initial laser evaluations were shown for the first
time in July 2004 at the Congress of the International Society for Photogrammetry and Remote
Sensing (ISPRS) in Istanbul. In mid-October, the
Leica HDS3000 was used to analyze the building’s floors. At an early stage of the research
project the handheld Leica DISTO™ laser meter
also played an important role.
Because of its vast dome, which appears to float
weightlessly above the main space below, the
church was widely regarded as the eighth wonder of the world. The original construction plans
have never been found, and for hundreds of years
experts have tried to fathom out how scientists
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Leica Geosystems
Annual Report
Now Volker Hoffmann and his assistant, with the
help of the 3-D laser measurement techniques
made possible by Leica Geosystems equipment, have cracked the once insoluble problem
of determining the church’s dimenLeica Geosystems
sions with absolute precision and
equipment helps to
discovered that its design is based
add to the stock of
entirely on an “analemma.” This is
human knowledge
a projection technique described by
and understanding.
Ptolemaeus, which makes it possible to interconnect the earth and the canopy of
heaven in accordance with the view of the
world at this time: the sphere representing the
sky, god and the church, and the cube representing the earth with its four directions, above
and below. As Volker Hoffmann explains, “For
the first time ever, the Leica DISTO™ laser measuring instrument enabled us to determine the
precise distances of the four supporting pillars
to within a millimeter at the simple touch of a
button. This was highly important at the start of
our work and helped us calculate the dimensions
of the double circle/double square.” His findings
revealed the brilliance of the design principle behind this magnificent monument to Saint Sophia
and man’s ingenuity, and explain the structure’s
astonishing stability. These will now be presented at exhibitions in Berlin, Bern, the United
States and France.
cases covers thousands of square kilometers.
The development of alternative survey technologies – Leica Geosystems GPS for instance –
has enabled us to use less-invasive procedures.
The benefits of using GPS for seismic surveys
How have these surveys affected
the environment?
Conventional seismic programs have inevitably
affected environmentally sensitive areas and led
to the destruction of vegetation, habitat, ground
disturbance and the disruption of many natural
phenomena.
include minimal environmental impact, safer,
single-pass survey operations, and flexible crew
movements, saving time and money
Minimizing the Environmental
Impact of Seismic Surveying
Wolf Survey and Mapping in Canada is a major
supplier of seismic front-end services to energy
exploration and production companies in Canada
and uses GPS systems to support seismic exploration and surveying applications. Seismic
surveys are used to detect and map different
geological layers below the surface of the earth
and provide invaluable information about underground substructures. Leica Geosystems asked
Operations Supervisor Mark Strickland to explain
some of the complexities of the business and
environmental benefits of using GPS in his work.
Leica Geosystems: What is the use
of seismic surveys?
Mark Strickland: For geophysicists, seismic
surveys are an indispensable means of prospecting for new oil and gas deposits and enable us
to estimate the size, shape and depth of reservoirs as well as their porosity and fluid content.
How has the use of Leica Geosystems
GPS equipment reduced the environmental
impact of seismic surveying?
The obvious benefits of using GPS for seismic
surveys include minimal environmental impact
with reduced timber damage, and a safer, singlepass operation with fewer exposure hours to
danger. It eliminates the need for a precut sightline, and thus the felling of trees, and drastically reduces the work involved. It is an industrial
revolution in every sense of the term!
Mark Strickland: “Our reasons for choosing the Leica GPS 1230 were its durability,
performance under adverse field conditions, improved user interface and out-
What do seismic surveys involve and how
have they been conducted in the past?
Traditionally, seismic surveying has meant clearing vegetation in the target zone, which in some
standing battery performance.”
25
Reducing our
Environmental
Footprint
An all-round boost in efficiency
In the past, we have concentrated on optimizing
production processes, but last year the focus
was on improving our infrastructure and innovation processes. At company headquarters in
Heerbrugg, we demolished a number of old buildings to create attractive green recreation areas
for our employees. New unpaved spaces and
parking lots allow vegetation to grow and rainwater to drain off naturally. Our new facilities in
Singapore feature a new air-cooled air-conditioning system that cuts energy consumption by
Our environmental footprint is
very small and we aim to keep
it that way
26
Leica Geosystems
Annual Report
30% because it can be switched on and off, as
required, in nine different zones. Special sheeting
on the windows reflects 70% of the sun’s heat.
The new system has also reduced water consumption and contamination, and indoor noise
levels.
Sustainable product design
Two students working with “seed sustainability,”
a Swiss Federal Institute of Technology project
based in Zurich, have written theses on the
integration of sustainable product
The obligation is
design into our business processes.
clear: to leave a
In response to their work, the Leica
world fit for our deInnovation Process (LIP) will be
scendants to live in.
adapted to encourage sustainable
design and feature performance indicators to
monitor and control improvements, such as recycling quotas.
New environmental goals
Management has also set several new environmental goals for the next five years. Since we
have largely outsourced basic production processes and require few resources for the assembly
of our products, the goals we have set ourselves
are more quality oriented. They include:
A 5% reduction in energy use (electricity and
fossil fuels), relative to sales
Use of environmentally friendly/multipurpose
packaging materials
A reduction of end-of-life waste created by
our products in accordance with national and
international regulations
Environmentally friendly mobility (e.g. using
modern communication technologies, promoting teleworking)
Social
Commitment
We have also introduced round-table meetings
as a forum for the informal exchange of information between management and employees. Our
Chief Human Resources Officer is also responsible for ensuring that men and women receive
equal pay for the same work.
Corporate social responsibility
Leica Geosystems aspires to be a company in
which employees, customers, investors and partners have complete confidence. Corporate social
responsibility is a means of boosting our image
as a fair and attractive employer because it
increases staff loyalty and attracts well-qualified
professionals. We regularly conduct employee
satisfaction surveys to find potential for improvement. Our last major survey in 2003 was followed by a minisurvey in September 2004, which
showed an increase of 15% in satisfaction for
all five areas in question. External rating agencies have also given us very positive evaluations
and provided input as to how we could further
improve.
Social data and goals
We now maintain a human resources information system, where we collect social data to
monitor achievement of our social, health and
safety goals. On a social level, we are looking to
increase the percentage of part-time and female
employees in top and middle management. We
wish to increase diversity by recruiting people
from various ethnic backgrounds. Our aim is to
employ a large number of apprentices and trainees to reduce youth unemployment. Another
goal is to build up a partnership with a charitable
organization for a social development project in
which we can assist with our expertise and products. Next to our introduced and more specific
Code of Conduct, we are introducing a social policy that defines our adherence to human rights
in a more general way.
Work-life balance
In November 2004, “Familienplattform,” an association involving three important Swiss institutions, awarded Leica Geosystems the title of
family-friendly company of the month. We sponsor a child-care center, employ a social adviser
for our employees, offer part-time work and annual flextime models and the possibility for teleworking. More and more employees are making
use of the possibilities of unpaid leave and
sabbaticals. We have also introduced workshops
for managers to analyze their work-life balance
and forestall burnout.
Full-time employees by region
Switzerland 41%
Europe 23%
America 23%
Asia 13%
Integration/diversity/equality
As a global company, we employ people from
many different nationalities. We recently set up
a workshop to explore ways of helping new employees, particularly those moving
We go to great
to foreign countries, acclimatize
lengths to improve
to their new surroundings. We now
our employees’
employ integration managers,
quality of life and
whose job is to assist employees to
job satisfaction.
settle in their new professional and
private environments. Leica Geosystems Technologies Pte Ltd in Singapore provides overseas
workers with subsidized accommodation for the
first two years of their stay.
27
Operating Divi
28
Strong growth
Laser scanning
Key customer
in key regions
comes of age
wins in 2005
Robust demand
for Surveying & Engineering products
led to significant
local currency sales
growth in the US
and Asia in fiscal
year 2005.
3-D laser-scanning
solutions from HighDefinition Surveying
broke out of the
early adopter phase
of their life cycle,
resulting in 149%
sales growth in
fiscal year 2005.
Governmental agencies in countries
around the globe
increasingly turned
to GIS & Mapping
geospatial solutions
in fiscal year 2005.
Breakthrough surveying
solutions from
sions
Leica Geosystems
Changes in distri-
Penetration of
Interest in
bution structure
automotive sector
Singapore JV sold
The sharply focused
distribution structure
in Consumer Products led to expanded market coverage
and optimized
distribution costs.
The new T-Products
from Metrology
were enthusiastically
adopted by major
players in the automotive industry during fiscal year 2005.
Divestments in the
Special Products
division continued
with the sale of
Leica Instruments
(Singapore) Pte Ltd
to Leica Microsystems in December 2004.
29
Divisional
Overview
Hardware to capture spatial data, from individual
points at a survey site
or engineering project,
through to mass data from
airborne sensors or 3-D
laser scanners.
Local Roots, Global Reach
Through its five primary divisions, Leica Geosystems delivers advanced product technology
and services throughout the whole geospatialimaging chain. Based in Switzerland, with
a workforce of more than 2,300 people in 21
countries and hundreds of partners in over
120 nations, the company supports tens of
thousands of customers worldwide.
capture
reference
Hardware and software
to reference spatial information within a project,
such as a building plan, GIS
database, topographical
map or a CAD/CAM system.
Surveying &
Engineering
High-Definition
Surveying
GIS & Mapping
Surveying & Engineering provides a wide choice of products
and services that include TPS
total stations, GPS Surveying
Systems, levels, constructionsite lasers, and machine guidance systems, through to
comprehensive, integrated
solutions for infrastructure and
deformation monitoring.
High-Definition Surveying solutions are designed for applications that enhance precision
and efficiency in all types of
applications, such as plant and
facility management, construction path planning, topographic
surveys, documentation of
facilities for regulatory compliance, historic preservation, and
much more.
GIS & Mapping helps put precise imaging to work by powering the entire geospatial imaging workflow. A broad array of
airborne sensors, photogrammetric mapping and remote
sensing software solutions capture data efficiently, reference
imagery accurately, measure
and analyze easily and present
spatial information in 3-D.
Markets/customers
Architecture, engineering
and construction
Land surveyors
Markets/customers
Public/private mapping agencies
Federal, state and local
governmental organizations
Security/defense organizations
Commercial GIS users
Markets/customers
Surveying professionals
Civil engineers
General contractors
Construction companies
Mining and exploration
enterprises
Products/solutions
Theodolites, total stations
GPS surveying instruments
Levels, lasers, hand-held GIS
Machine automation solutions
30
Leica Geosystems
Annual Report
Products/solutions
Family of 3-D laser scanners
3-D pointcloud visualization
software
CAD integration software
Products/solutions
Airborne sensors, including
digital cameras and LIDAR
Photogrammetric software
Geospatial-imaging solutions
Software solutions to
Hardware and software
present captured spatial
tools to work with spatial
information, often in 3-D,
information, e.g. photo-
such as 3-D city models,
grammetric analysis of
as-built models of struc-
imagery or engineering
tures, site surveys and
projects.
preservation projects.
measure
analyze
present
Software to analyze
critical information within
a project, including feature
extraction in aerial imagery
or deviation from design.
Consumer Products
Metrology
Special Products
Consumer Products facilitates
fast, accurate measurement
with the Leica DISTO™, the original handheld, laser-based
distance measurement product.
Available in a wide choice of
models, it is used by more than
half a million professionals
worldwide, saves time and enhances productivity.
Metrology supplies a wide
choice of control and industrial
measurement products that
includes laser trackers, local
positioning systems, scanning
systems, 3-D software, and
high-precision total stations
that capture data accurately,
model quickly, analyze easily,
and visualize and present 3-D
spatial information.
The Special Products division
was created to hold operations
that Leica Geosystems is
planning to divest. Currently
the division contains the component-manufacturing facility,
Polymeca, in Heerbrugg, as
well as the GPS Marine Navigation business based in
Torrance, California.
Markets/customers
Builders, carpenters
Architects, interior designers
Engineers
Products/solutions
DISTO™ Lite
DISTO™ Classic
DISTO™ Plus
Markets/customers
All major players in the global
aerospace and automobile
industries
Products/solutions
Laser tracker
T-Scan and T-Probe
Metrology software solutions
Industrial theodolites
Operating Divisions
31
Surveying &
Engineering
them. These marketing activities raised our profile, consolidated our presence in the industry
and brought about a major improvement in brand
recognition. The success of the System 1200
has already established itself as the industry’s
system of choice.
The Surveying & Engineering division had another outstanding year, posting vigorous growth
in all four of its sales regions. The division
considerably strengthened its product portfolio
following the completion of several key development projects, while the overwhelming response
from customers to the new System 1200 provided
some indication of the momentum with which
the division entered the new fiscal year. Total
revenues for the year stood at CHF 492.4 million,
representing an over 16% increase over the
previous period. This growth is broadly based,
as the Americas and Asia both reported close
to 30%, while Japan and Europe reported solid
double-digit growth. Growth in America and
Asia was achieved despite the problems posed
by the weak US Dollar and a competitive environment. The division’s strategy to boost productivity in many areas led to an EBITDA margin
of 19.7% in fiscal year 2005 compared with
18.5% the previous year.
Going from strength to strength
In the course of the past fiscal year, we made
satisfactory progress with efforts to strengthen
our foundations for growth. We consolidated
our machine automation and monitoring operations in the construction and mining sectors.
Our rail and underground systems established a
foothold in the industrial sector, with several rail
authorities purchasing the systems. In addition,
we won several high-prestige GPS reference networks around the world, some of which featured
as case studies on our website. Our GIS data
collection products and handheld GPS systems
also won several key tenders. In summary, the
division is strengthening its position in peripheral
survey market segments.
On the road to reach our customers
If fiscal year 2005 was a satisfying year in terms
of sales and revenues, it was also encouraging
from a quality angle. The Surveying & Engineering division took significant orders from several
well-known institutions and global customers,
including a number of high-profile competitive
account conversions. This was assisted by our
road show events, which attracted more than
10,000 customers in Europe alone. Two survey
trucks went on the road in North America, visiting
no fewer than 104 cities in 41 states and provinces, and logging some 41,000 miles between
Sprinter
32
Leica Geosystems
Annual Report
In addition to System 1200, launched just before
the start of fiscal year 2005, the financial year
saw the rollout of several other products.
MC200 and GRP5000
These products made inroads into the excavation market and brought scanning technology to tunnel-mapping applications,
respectively.
MobileMatrix
A software solution that enables graphical
field surveying and improves the workflow
from field to office.
SR20
The release of this device means we now have
a competitive product in the L1 GPS survey
segment.
Sprinter
The world’s first low-price digital level brings
greater efficiency and precision to opticalleveling users, reducing field errors and improving field productivity with its measuring
speed and ability to measure in low-light
conditions. The upshot is more measurements
and cost reductions for customers.
Rugby 300/400
Unveiled at CONEXPO 2005 in Las Vegas,
these new laser rotators have extended our
product portfolio to cover single- and dualgrade solutions.
Spider 2.0
This GPS reference network software offers
many advanced features, including area-based
correction for RTK processing. It is also the
first software package to meet the new RTCM
3.0 standard for GPS correction data distribution.
SmartStation
The world’s first total station with GPS processing capability will revolutionize traditional
surveying processes, giving customers unprecedented productivity.
In the fourth quarter of fiscal year 2005, we
opened a new SGD 6 million facility in Singapore,
Leica Geosystems Technologies, which combines
the activities carved out from the Leica Instruments (S) joint venture and laser production
activities in Grand Rapids, Michigan, USA. This
move has substantially reduced our operating
costs and improved our ability to offer competitive lasers and level products in the future.
The products and organizational initiatives in
this fiscal year have laid the foundations for
another exciting year ahead. Barring unfavorable
shifts in global economic trends or unforeseen
catastrophes that negatively affect global business sentiment, we are confident of achieving
our growth targets in the financial year ahead.
Sales
EBITDA
17.5
16.3
40
100
20
FY03
FY04
FY05
0
97
60
200
492
80
300
423
100
400
398
500
78
0
6.5
0
18.5
70
7.4
FY03
FY04
FY05
Currency-adjusted
sales growth in %
Sales growth in %
custom Ford F150 from Hans Hess, CEO
Leica Geosystems Hits the Road
During the months leading up to the launch of
System 1200, a North American team brainstormed
to devise a marketing campaign with a difference.
The result was “The Leica Road Show.”
On May 1, 2004, two Ford F-150 SuperCrew Cab
pickup trucks left Atlanta to visit customers all over
North America. Events were coordinated with our
distribution partners in 104 cities, located in 41
states and provinces, and the distance covered was
41,000 miles. As an incentive to customers, one of
the trucks was the grand prize in a sweepstakes.
19.7
19.0
0
Mr. Pete Tuftee receives keys to the
Although each event was different, they all highlighted the technical innovations and benefits of
System 1200. At an annual surveyors’ golf outing
in Canada, for example, there was a prize for the
person with the longest drive. The TPS1200 total
station with the new R300 Reflectorless EDM was
used to measure the distance traveled by each ball.
While the Road Show was a successful way of introducing new products to Leica Geosystems’ traditional customers, it also reached many non-Leica
Geosystems customers. Indeed, 36% of attendees
owned no Leica Geosystems equipment.
The culmination of the Road Show came in early
December when Hans Hess, CEO of Leica Geosystems, was in Atlanta to present the custom Ford
F150 to the winner Pete Tuftee, surrounded by a
host of Leica Geosystems Surveying & Engineering
employees.
Operating Divisions
33
High-Definition
Surveying (HDS)
In many respects, fiscal year 2005 was a very
successful year for the High-Definition Surveying
division (HDS). With close to a 150% increase
in revenues over the previous year, a dramatic
improvement in EBITDA and the solid development of new products, services and increased
customer benefits, HDS met, or even exceeded,
its ambitious expectations at the start of the
fiscal year.
Following the successful production ramp-up
of the HDS3000, the division succeeded in completely reducing its backlog from the previous
year and meeting increased demand from the
market for HDS products and solutions. Further
investment in Cyclone software and joint efforts
with our partners, Zoller + Fröhlich, Germany, to
facilitate seamless integration of the HDS4500
into the HDS product portfolio led to another impressive release of HDS products and solutions.
The accompanying rollout of CloudWorx 3.0 enabled engineers and surveying professionals to
benefit from the richness and completeness of
high-volume pointclouds in third-party software
packages such as Autodesk’s
AutoCAD and Bentley’s
MicroStation. The release
of Cyclone 5.2 and
CloudWorx 3.1 at the
end of the fiscal year
demonstrated HDS’s
ongoing commitment to improving
the functionality
of its software
and generating
increased benefits, together
with an improved
return on investment, for customers
who choose HDS
products and solutions.
HDS3000
34
Leica Geosystems
Annual Report
Increasing interest in HDS products
and technologies
HDS technologies are becoming increasingly
interesting for the profession and the industry.
The number of HDS-related conferences, the
coverage of HDS topics in major journals and
the activities of universities and standardization
institutions based on HDS technologies are all
clear indications of an increased and accelerated
adoption of HDS technology at various different
levels. With its ability to support new workflows
in specifically targeted industries (civil engineering, infrastructure and plant construction), the
division significantly increased the number of
tasks and projects that can be addressed by HDS
products and solutions. The attractiveness of
HDS products and solutions for existing and
potential customers from a profitability point of
view has increased substantially and HDS now
has the potential to evolve rapidly into a standard instrument found in the toolboxes of most
measuring professionals.
HDS more than ever the system of choice
During fiscal year 2005, global sales increased
significantly over the previous year and the
volume of incoming orders grew steadily. The
division maintained its efforts to boost sales and
improve its global support network, and continued to leverage the excellent coverage and
strengths of the Leica Geosystems global sales
and marketing organizations. Thanks to efforts
made to reduce costs in fiscal year 2004, increased revenues and a clear improvement in the
gross margin, HDS broke even at the EBITDA level.
Worldwide partnerships consolidate
leading position
Part of the HDS division’s strategy is to build
relationships with suitable partners all over the
world. In calendar year 2004, the division published details of a new venture with AVEVA Group
plc, a leading UK-based supplier of engineering
IT systems for the process, energy and marine
industries. HDS was also pleased to announce
that its laser-scanning pointcloud data integration
capabilities will be supported in future releases
of SmartPlant Review ®, a 3-D visualization software suite developed by Intergraph Corporation’s
Process, Power & Marine division. The HDS division also continued to work with other leading
suppliers in their respective fields, such as Zoller +
Fröhlich, Germany, and Bentley Systems, USA,
promoting the adoption of HDS products and
solutions and leveraging our complementary
strengths in ways that are mutually beneficial to
all parties concerned.
HDS predicts continued strong growth in fiscal
year 2006 as it intensifies efforts to enhance its
product and service range and steps up support
of specific applications and workflows in its
target markets and industries. The current trend
in the CAD/GIS industries towards 3-D solutions
will clearly facilitate the adoption of High-Definition Surveying. This, together with intensified
efforts on the part of the HDS division to optimize its software, the marketing of new, industryspecific software products and the tools and
basic technologies needed to make pointclouds
available for a multitude of third-party software
packages, should drive the accelerated adoption
of High-Definition Surveying even further.
Sales
EBITDA
159.3
148.9
–2.1
0.4
0
–5.6
–68.6
25
80
20
32
100
13
15
20
5
0
0
FY03
FY04
FY05
0.1
10
–10
40
14
60
–76.2
–9
0
FY03
FY04
FY05
Currency-adjusted
sales growth in %
Sales growth in %
Jonathan Kung, Lead Software Engineer,
High-Definition Surveying division
Pointcloud Management
Leica Geosystems: Jonathan Kung, what
are pointclouds?
Jonathan Kung: High-Definition Surveying uses
laser scanners to capture dense, 3-D geometric data
sets representing sites and structures. These data
sets are called pointclouds and are organized in a
grid-type database structure. This presents unique
challenges during the processing of scanned data
into maps and drawings or other deliverables.
How has Leica Geosystems responded
to the challenge?
Our HDS systems and highly versatile, HDS-optimized software combine high performance with
virtually unlimited capacity and exceptional quality
in a single package.
Tell us something about recent developments.
First, to shorten the learning curve and increase
customer productivity, we made Cyclone™ software
compatible with the new Leica HDS4500 phasebased scanner. This means pointclouds from both
systems can be unified and managed in a single
model in Cyclone for visualization and data extraction
purposes. Second, we expanded our Autodesk and
Bentley CAD integration software (CloudWorx™)
to include new solutions for popular plant design
software from Intergraph and AVEVA, both leaders
in their respective fields. Finally, we made major
advances in our software architecture to reduce the
amount of office time needed to process scanned
data. Today, our software solutions are better than
ever before.
Operating Divisions
35
GIS & Mapping
Leica Geosystems’ GIS & Mapping division is
powering geospatial imaging through every step
of the Geospatial-Imaging Chain, driving efficiency and cost-effectiveness for our customers.
During fiscal year 2005, the division made several benchmark sales and notable product releases. Each of these demonstrates the diverse
applications of geospatial imaging in organizations worldwide.
Strategic customers
Adoption of Leica Geosystems solutions for
image capture and exploitation has continued
at a steady pace. Among our key customers for
the year are the United States Forest Service,
the Ordnance Survey of Ireland, Pusat Remote
Sensing Negara (MACRES) and the National Remote Sensing Agency (NRSA) of India.
The U.S. Forest Service is standardizing its equipment with Leica Geosystems imaging-processing
and photogrammetry software. A site license
agreement allows the Forest Service to employ
the full complement of Leica Geosystems software products in nearly every forest management
application, including forest planning, inventory,
resource mapping, fire monitoring and management, and forest restoration.
The Forest Service is an exemplary customer,
leveraging every link of the Geospatial-Imaging
Chain. Every year, it measures 10 to 20% of all
the land in the U.S. and
updates forest population estimates using its
Forest Inventory and
Analysis Program (FIA).
Seeking more efficient, cost-effective
methods for accurately
executing the annual forest
inventory, it set out to deter-
Airborne Digital Sensor ADS40
36
Leica Geosystems
Annual Report
mine the viability of large-scale, digital aerial
photographs to sample FIA plots. The project
used a Leica RC30 Aerial Camera System, ERDAS
IMAGINE ® and the Leica Photogrammetry Suite
(LPS). The results show that a combination of
traditional ground crews and aerial photography
will benefit the Forest Service by increasing costefficiency, while preserving accuracy and fulfilling
its annual inventory requirements.
Ordnance Survey of Ireland (OSI) is a key Leica
Geosystems customer, producing urban, rural
and tourist and leisure mapping products. This
year it not only purchased an ALS50 Airborne
Laser Scanner and upgraded its existing DigitalScanning Workstation (DSW) scanners to
DSW700s, but OSI also acquired a terrestrialscanning system from Leica Geosystems HDS
and GPS hardware from Leica Geosystems Surveying & Engineering.
Pusat Remote-Sensing Negara (MACRES), the
government remote-sensing agency of Malaysia,
has selected Leica Geosystems software to support Malaysian state environmental initiatives.
Its IEDA Project utilizes LPS in support of its
ground receiving station, and in processing data
from satellite sources.
The National Remote Sensing Agency (NRSA) of
India is responsible for acquisition, processing,
distribution and archiving of data from remotesensing sources, and it is also engaged in executing various remote-sensing application projects.
NRSA employed its new ALS50 to map areas
affected by the South Asian tsunami within days
of the disaster on 26 December 2004.
Leica Geosystems GIS & Mapping is working to
assist government agencies and disaster relief
organizations responding to the South Asian
tsunami. Aerial imaging and mapping are important during the response and recovery stage of
a disaster, for positioning facilities and services,
determining a triage method to repair infrastructure, and in determining loss in order to
begin work on recovery.
Product highlights
We continue to empower our customers with
complete solutions for photogrammetry, remote
sensing and image exploitation. Several product
releases and enhancements were made available this year, particularly:
The Leica ADS40 Airborne Digital Sensor
now delivers 5-centimeter spatial resolution
imagery. This marks a significant improvement from its previously published accuracy
level of 10 –15 centimeter spatial resolution.
With this capability, the ADS40 strengthens
its standing as the leading large-format
digital sensor.
This year also marked the availability of
significant updates to ERDAS IMAGINE ® and
Leica Photogrammetry Suite. These performance enhancements were designed in response to customer feedback, and empower
both ERDAS IMAGINE ® and LPS to meet
the most stringent user requirements for
geospatial imaging.
The DSW700 Digital-Scanning Workstation,
a high-performance photogrammetric
film scanner, produces output that is uniquely
accurate while maximizing performance,
increasing reliability and reducing costs. The
latest version of the popular DSW scanner
series features a 30% improvement on scanning speeds, as well as improved quality and
lower cost of operation.
Sales
EBITDA
8.2
5.5
1.1
11.4
20
20
5
94
10
95
15
40
101
60
FY03
FY04
FY05
0
11
25
80
10
–0.7
–5.8
100
0
10.8
0
8
0
FY03
FY04
FY05
Currency-adjusted
sales growth in %
Sales growth in %
Mladen Stojic, Product Manager,
GIS & Mapping division
Leica Geosystems powers
3-D imaging
Leica Geosystems empowers organizations to transform raw imagery into three-dimensional (3-D)
scenes by providing hardware for data capture and
seamlessly integrated software for image exploitation. Using a combination of terrestrial scanning,
airborne LIDAR, airborne and satellite imagery, datarich photographs, and generic tile textures, users
are able to quickly and easily generate accurate 3-D
renderings and fly-through simulations for use in
decision-making processes.
Until recently, it was difficult and costly to create
high-quality, interactive 3-D views. Three-dimensional scenes are created by extracting geospatial
information from imagery and draping it over elevation data. These scenes may be populated with
trees, vehicles, buildings and weather effects to
build simulations. We deliver intuitive, integrated,
realistic and affordable 3-D geospatial visualization
and modeling tools to facilitate decision making.
Real-time streaming and improved distribution via
the Web gives decision makers ready access to 3-D
scenes for such varied applications as homeland
security and defense, real-estate development and
urban planning, and emergency response and
management.
Operating Divisions
37
Through our private-label
partners, who distribute
Leica DISTO™ under their
own well-known brand
names, we have ready access to hundreds of thousands of professionals and
specialists worldwide.
Although they represent
only a relatively small proportion of total sales, our
private-label partners’
brands and product baskets
give us a unique competitive advantage. At the same
On course for sustained growth
In the course of the year, we rolled out a global
campaign that will steadily increase the number
of points of sale around the world. This has
already helped generate double-digit growth in
the Americas and Asia, as well as a steady rise
in western European markets, which have considerably less room for expansion. Our aim is to
continue improving distribution with a view to
reaching end users through all the channels at
our disposal.
Leica DISTO™ is now seen on job sites all over the
world. The Leica DISTO™ name is synonymous
with cutting-edge laser measurement technology
and continues to be the first choice of professionals in a vast range of trades and disciplines.
Now that we have succeeded in improving the
distribution, we look to the future with confidence.
Sales
EBITDA
15.9
14.8
6.2
25
80
20
60
15
40
10
Leica DISTO Plus
38
Leica Geosystems
Annual Report
23.9
59
62
5
51
0
14.4
0
100
20
™
11.8
7.9
0
FY03
FY04
FY05
0
15
Focused distribution structure
Thanks largely to a sharply focused distribution
structure, we were able to meet two of our
major targets for the past fiscal year: to expand
market coverage; and to optimize distribution
costs. Achievement of both these objectives enabled us to post a strong financial performance
for the year.
In keeping with our strategic goals, we have
substantially increased revenues from our key
accounts and are implementing strategies to
guarantee that this continues in the years ahead.
Our new global distribution partners will be
creating new opportunities in segments where
customers quickly understand the value proposition represented by the Leica DISTO™ solution.
9
Despite increasing pressure from the competition, Leica DISTO™ continued to grow at a healthy
rate during the past fiscal year. Unit sales growth
was in excess of 15% while the value of sales
was up by 7.9% in local currency. Gross profit,
too, rose in response to the division’s new strategy of placing more emphasis on higher-end
products, such as the Classic5a and Plus, and the
further optimization of the “pay-as-you-go”
principle. Worldwide, architects, engineers and
the property-related industries benefited from
being able to integrate the DISTO™ Plus into
their workflow. Private-label business, another
important component in the division’s strategy,
likewise continued to thrive and rose as a proportion of sales.
time, the extensive reach of our Leica Geosystems dealer network allows us to address engineers, surveyors and architects in every corner
of the globe. Finally, several new, segment-specific distribution partners couple their expertise
with the unrivalled efficiency of Leica DISTO™
to create unique solutions to measurement challenges anywhere on earth.
6
Consumer
Products
FY03
FY04
FY05
Currency-adjusted
sales growth in %
Sales growth in %
Success through Dynamic
Product Management
The Leica DISTO™ Laser Distance Meter holds a
strong position in a dynamic and attractive growth
market. The stiffly competitive nature of this
market results in a relatively short product life cycle,
comparable with other technical consumer goods,
such as digital cameras. Although significant innovations are launched at relatively short intervals, it
is vital that we operate an active life cycle management program for each product generation. This
enables Leica Geosystems to respond rapidly to
changes in the market environment and to keep
a step ahead of the competition.
Bettina Messmer, Product Manager,
Consumer Products division
In view of the fact that we did not release a new
generation of products during the past fiscal year,
we focused our strategic marketing efforts on
life cycle management activities, with the aim of
increasing the competitiveness of the current
generation of instruments and consolidating our
leading market position. Although the current
generation of products is still the benchmark for
the industry, we introduced a number of selected
actions that further improved the strategic positioning of our product lines.
In the course of this year, the division successfully
launched two new products. The Leica DISTO™
classic5a superseded the current generation, offering increased measurement accuracy with a new,
innovative color design. In addition, to mark
the sale of a total of 750,000 DISTO™ products, the
division offered the Leica DISTO™ special5, a special
limited edition, which thanks to its attractive positioning between beginner and advanced models,
appeals to new customer segments.
Operating Divisions
39
Metrology
Fiscal year 2005 saw the first shipments of
Leica Geosystems’ new T-Probe, the award-winning walk-around coordinate measuring machine
(CMM). Famous names like Airbus, Boeing or
Eurocopter in aerospace, and Ford, Rolls Royce,
BMW and others in the automotive industry
now benefit from the device’s outstanding features. Despite the successful product launch,
the Metrology division had a challenging year.
Sales came in slightly below the prior year, but
on a currency-adjusted basis increased 3.2%.
Operating margins were also under pressure
during the year. The Metrology division closed
the year with an 11.5% EBITDA margin, down
from last year’s 18.9%. Profitability declined due
to the combined effects of lower gross margin
and increased operating investments. The timeconsuming launch of the T-Probe pushed sales
down during the first two quarters, but these
were followed by three very strong months and
an excellent fourth quarter. Several new sales
and marketing staff were hired to
promote the products to new sectors,
especially the automotive industry.
Recognition for technological
leadership
The handheld, wireless T-Probe was well received by the market. Sales
to the automotive industry increased substantially within six
months and helped strengthen
Leica Geosystems’ position
as a leading 3-D industrial
measurement solution
provider. An in-depth
analysis of the
product’s
features and
benefits backed
by market research
After successful on-site benchmark tests, the
first T-Scans were shipped to customers in Asia
and the US in February. The official launch and
production ramp-up are planned for the first
quarter of fiscal year 2006. The T-Scan will facilitate and expedite Leica Geosystems’ entry into
high-accuracy digitization for the aerospace and
automotive industries.
In November 2004, Leica Geosystems signed a
global software license and collaboration agreement with Metrologic Group, a leading 3-D
industrial measurement software provider. Leica
Geosystems’ portable CMM’s will feature customized Metrolog XG for Leica Geosystems software,
the best of its kind on the market, and customers will benefit from twice-yearly updates.
Consolidating our global position
These moves will strengthen Leica Geosystems’
leading position as a complete-solution provider
to the automotive, aerospace and general precision industries. The division already supplies
all the aerospace industry’s big players, such as
Lockheed Martin, Boeing, Northrop Grumman,
Alenia Aeronautica, M-Torres and Eurocopter,
and has delivered more than 100 portable CMM
systems to Airbus A380 plants across Europe.
The division has also launched several initiatives
in Asia. A distribution agreement signed last
year with Tokyo Boeki Techno Systems in Japan
is yielding first results. The automotive industry
has placed orders for several portable CMM systems, and we predict higher sales in the near
future. As part of the division’s initiative in China,
several sales people were hired to better address the automotive market and strengthen our
solid position in aerospace.
Service and support are key components in the
Metrology division’s strategy. As a highly customer-oriented company, we strive to provide
the best service and support in the industry.
The increase in service and support revenue
(+9% compared with the previous year) can be
T-Probe
40
prompted Frost & Sullivan to declare the LocalPositioning-Technology-based (LPT) T-Probe and
T-Scan the winners of their 2004 Industrial Automation Product Innovation of the Year Award.
The New-York-based company said the nomination acknowledges Leica Geosystems’ “excellence
in technology leadership within its industry.”
Leica Geosystems
Annual Report
seen as a confirmation and appreciation of our
effort. For the upcoming fiscal year 2006, Metrology expects to continue to grow revenues in
line with previously communicated targets. The
division’s assumptions are based on orders from
new aerospace projects, further penetration of
the automotive and general industries thanks to
new Local-Positioning Technology solutions, and
realization of market opportunities through focused sales and marketing efforts.
Sales
EBITDA
18.9
22.1
11.5
15.2
11.9
0
3.2
Duncan Redgwell, Vice President Sales
0
Europe, Metrology division
20
20
5
0
66
10
66
15
40
59
60
FY03
FY04
FY05
0
8
25
80
13
100
13
–0.9
FY03
FY04
FY05
Currency-adjusted
sales growth in %
Sales growth in %
Making Inroads in the
Automotive Industry
Three years ago, Metrology’s European sales team
decided to even out market penetration in our key
sectors. We calculated that our Local-Positioning
Technology (LPT) would enable us to compete
against large CMM competitors and branch out into
other areas. So, we started a campaign to train our
sales and support people in these new applications
and introduce Leica Geosystems to customers who
were unaware of our metrology solutions.
Our large-volume, portable probing system has given many customers an exciting solution to old
measurement problems. Either of the methods previously used – large, fixed CMMs or smaller probing
arms – created an accumulation of errors and increased measurement time that has long plagued
the measurement world.
One year after launch and the signing of a
strategic alliance to supply our portable CMMs with
Metrolog XG for Leica Geosystems Software, our
strategy is paying off. A lull in the aerospace industry has been followed by success with automotive
and general industrial manufacturing applications.
In our first year, we delivered T-Probe systems to a
significant number of major car manufactures including Renault F1. To quote Micky Nolan of Renault
F1, “The Leica Laser Tracker and T-Probe is the only
measurement system on the market that fulfils the
Renault F1 Team criteria.”
Operating Divisions
41
For the current fiscal year 2005, Special Products
operations generated CHF 26.7 million in thirdparty sales, which included sales of Leica Instruments through the third quarter. The combined
operations of Special Products generated EBITDA
of CHF 11.4 million for the full year.
Sales
EBITDA
24.4
42
Leica Geosystems
Annual Report
34.1
0
34.0
0
–17.6
100
25
–19.0
80
20
60
15
40
10
FY03
FY04
FY05
0
11
5
27
0
33
20
27
The remaining activities in the Special Products
division comprise the following businesses:
Polymeca
A mechanical-component factory in Heerbrugg.
Polymeca continues to be an important supplier of parts and components for the surveying products we assemble in Switzerland.
Polymeca is simultaneously pursuing thirdparty contracts, and has been successful in
developing its portfolio of external customers.
MX marine
Our GPS operation for marine navigation systems, based in Torrance, California.
42.9
21.9
11
The Special Products division was created to
house businesses and other assets that Leica
Geosystems intends to divest. The divestment
program continued during fiscal year 2005. In
December 2004, we completed the sale of our
50% interest in Leica Instruments (Singapore)
Pte Ltd, a 50/50 joint venture, for CHF 4.4 million. The larger part of Leica Geosystems’ share in
the assets of Leica Instruments (Singapore) Pte
Ltd was simultaneously transferred to the newly
established Singapore subsidiary, Leica Geosystems Technologies Pte Ltd. As of the fourth
quarter of fiscal year 2004/05, this new subsidiary will be accounted for under the Surveying
& Engineering division.
Unlike the other divisions of Leica Geosystems,
the Special Products division is not managed
centrally, rather at the operational-unit level. The
individual divestment projects, however, are
managed centrally at the corporate headquarters
in Heerbrugg.
9
Special Products
FY03
FY04
FY05
Currency-adjusted
sales growth in %
Sales growth in %
Leica Geosystems Worldwide
Leica Geosystems has
subsidiaries in 21 countries,
with over 120 agencies
worldwide.
North and
Europe
Asia Pacific
South America
Belgium
Australia
Canada
Denmark
China
Mexico
France
Japan
United States
Germany
Korea
Italy
Singapore
Netherlands
Norway
Portugal
Russia
Spain
Sweden
Switzerland
United Kingdom
Locations
43
Company Contact Information
Corporate Headquarters
Primary Manufacturing Facilities
Leica Geosystems AG
Heinrich-Wild-Strasse
CH-9435 Heerbrugg
Phone +41 71 727 3131
Fax +41 71 727 4674
Leica Geosystems AG
CH-9435 Heerbrugg
Phone +41 71 727 3131
Fax +41 71 727 4674
Investor Relations
Phone +41 71 727 3064
Leica Geosystems Technologies Pte Ltd
2 Woodlands
Sector 1 #01–10
Woodland East Industrial Estate
Singapore 738068
Corporate Communication
Phone +41 71 727 4252
Divisional Headquarters
Surveying & Engineering division
Leica Geosystems AG
CH-9435 Heerbrugg
Phone +41 71 727 3131
Fax +41 71 727 4674
President: Clement Woon
High-Definition Surveying
(HDS) division
Leica Geosystems HDS, LLC
4550 Norris Canyon Road
San Ramon, CA 94583
USA
Phone +1 925 790 2300
Fax +1 925 790 2309
President: Erwin Frei
(through May 2005)
GIS & Mapping division
Leica Geosystems
GIS & Mapping, LLC
2801 Buford Highway NE, Suite 300
Atlanta, Georgia 30329-2137
USA
Phone +1 404 248 9000
Fax +1 404 248 9400
President: Bob Morris
Consumer Products division
Leica Geosystems AG
CH-9435 Heerbrugg
Phone +41 71 727 3131
Fax +41 71 727 4674
President: Klaus Brammertz
Metrology division
Leica Geosystems AG
Mönchmattweg 5
CH-5035 Unterentfelden
Phone +41 62 737 6767
Fax +41 62 723 0734
President: Walter Mittelholzer
Polymeca AG
CH-9435 Heerbrugg
Phone +41 71 727 4141
Fax +41 71 727 4720
Contact: Heinz Christen
Sales Companies
Australia
Leica Geosystems Pty Ltd.
Gladstone Road, Dutton Park
Brisbane, QLD 4102
Australia
Phone +61 7 3891 9772
Fax +61 7 3891 9336
Contact: Martin Nix
Leica Geosystems
GIS & Mapping Pty Ltd.
P.O. Box 213
Glenbrook, NSW 2773
Australia
Phone +61 2 4739 0669
Fax +61 2 4739 0339
Contact: Steve Gaynor
Belgium
Leica Geosystems NV
Pegasus Park
De Kleetlaan 4, bus 2
B-1831 Diegem
Phone +32 2 209 0700
Fax +32 2 209 0701
Contact: Rene Worms
Canada
Leica Geosystems Ltd.
513 McNicoll Avenue
Willowdale
Ontario M2H 2C9
Canada
Phone +1 416 497 2460
Fax +1 416 497 2053
Contact: Bob Williams
Greater China Region
Leica Geosystems AG
Beijing Representive Office
Room 1808, China Life Building
16, Chao Yang Men Dajie
Chao Yang District
Beijing 10020
People’s Republic of China
Phone +86 10 8525 1838
Fax +86 10 8525 1836
Contact: Peter Lippmann
44
Leica Geosystems
Annual Report
Room 1701-3
25, Westlands Road
Quarry Bay
Hong Kong
Phone +852 2564 2299
Fax +852 2564 4199
Contact: Peter Lippmann
Leica Geosystems (Shanghai) Co. Ltd.
Room 10402–10404
No. 498 Guoshoujing Road
Pudong Software Park
Shanghai 201203
Phone +86 21 5027 1218
Fax +86 21 5027 1228
Contact: Hans Ni
Leica Geosystems (Wuhan) Co. Ltd.
The 1st Floor, Incubator Building
Wuhan University Science Park
Jiangxia Avenue, East Lake Technology
Development Zone
Wuhan 430223
Phone +86 27 8719 6190
Fax +86 27 8719 6190
Contact: Deyang Wu
Denmark
Leica Geosystems A/S
Horkaer 12A
DK-2730 Herlev
Phone +45 4454 0202
Fax +45 4454 0222
Contact: Morten Rasmussen
Finland
Leica Nilomark OY (10.5% JV)
Sinimäentie 10C
P.O. Box 111
SF-02631 Espoo
Phone +358 9 6153 555
Fax +358 9 5022 398
Contact: Seppo Salo
France
Leica Geosystems Sarl
Parc du Saint-Laurent
54, route de Sartrouville
Bâtiment le Québec
F-78232 Le Pecq Cedex
Phone +33 1 3009 1700
Fax +33 1 3009 1701
Contact: Jean-Philippe Picon
Germany
Leica Geosystems GmbH Vertrieb
Hans-Bunte-Strasse 5
D-80992 München
Phone +49 89 1498 10 0
Fax +49 89 1498 10 33
Contact: Lothar Assenmacher
Italy
Leica Geosystems S.p.A.
Via Condognino 12
I-26854 Cornegliano Laudense (LO)
Phone +39 0371 697321
Fax +39 0371 697333
Contact: Andrea Cabrucci
Japan
Leica Geosystems K.K.
Regional Headquarters
Surveying & Engineering Division
Bunkyo Green Court, Bldg.
21F, 2-28-8 Honkomagome
Bunkyo-ku, Tokyo 113-6591
Japan
Phone +81 3 5940 3011
Fax +81 3 5940 3012
Contact: Tsutomu Kohara
Korea
Leica Geosystems KK, Korea Branch
GuGu Building, 1F
145-18 Samsung-dong
Gangnam-gu, Seoul 135-090
Phone +82 2 598 1919
Fax +82 2 598 9686
Contact: Y. K. Choi
Mexico
Leica Geosystems S.A. de C.V.
Porfirio Diaz, Pte No. 35
Colonia Nochebuena
03720 Mexico D.F.
Phone +525 563 5011
Fax +525 611 3243
Contact: Cesar Lanatta
Netherlands
Leica Geosystems B.V.
Cobbenhagenstraat 7
NL-2288 ET Rijswijk
Phone +31 70 307 89 00
Fax +31 70 307 89 19
Contact: Rene Worms
Norway
Leica Geosystems AS
Brobekkveien 80
N-0582 Oslo
Postboks 502
N-0512 Oslo
Phone +47 22 709 180
Fax +47 22 255 624
Portugal
Leica Geosystems – Sistemas
Para Topgrafia e Geodesia
Sociedade Unipessoal, Ltda
Estrada de Polima
Armazém Christel Peitz, S/N
Aboboda – Polima
P-2785-543 Salo Domingos de Rana
Phone +351 214 480 930
Fax +351 214 480 931
Contact: Jaime Fernandez
Russia
Leica Geosystems OOO
Partiyny pereulok, 1/57 stroenie 3,
Business Center M-stily
Office 203/204
113093 Moscow
Russia
Phone +7 095 250 72 69
Fax +7 095 250 72 53
Contact: Vladimir Gulin
Singapore
Leica Geosystems (Singapore) Pte Ltd
#04-55/58 German Center
25 International Business Park
Singapore 609916
Phone +65 6776 9318
Fax +65 6774 7145
Contact: Matthew Smith
Spain
Leica Geosystems S.L.
Nicaragua 46, 5° 4a
E-08029 Barcelona
Phone +34 93 494 9440
Fax +34 93 494 9442
Contact: Jaime Fernandez
Sweden
Leica Geosystems AB
Glimmervägen 14
Box 781
S-19127 Sollentuna
Phone +46 8 625 3000
Fax +46 8 625 3010
Switzerland
Leica Geosystems AG
Europastrasse 21
CH-8152 Glattbrugg
Phone +41 1 809 3311
Fax +41 1 810 7937
Contact: Hans-Ulrich Müller
Leica Geosystems GIS &
Mapping GmbH
CH-9435 Heerbrugg
Phone +41 71 727 3465
Fax +41 71 727 4691
Contact: Michael Hut
United Kingdom
Regional Headquarters Surveying &
Engineering Division
Davy Avenue
Milton Keynes MK5 8LB
United Kingdom
Phone +44 1908 256 500
Fax +44 1908 609 992
Contact: Mark Concannon
USA
Leica Geosystems Inc.
Regional Headquarters
Surveying & Engineering Division
5051 Peachtree Corners Circle
Suite 250
Norcross, GA 30092
USA
Phone +1 770 326 9500
Fax +1 770 447 0710
Contact: Bob Williams
Locations
45
Glossary
Coordinate Measuring
Machine (CMM)
This machine is normally fixed in
place with a maximum volume
of 3–5–8 meters. It incorporates
a probe, which can be slid along
three physically defined and mutually perpendicular axes. An object to be measured is placed on
the machine. By touching a probe
against the object, the current
contact position of the probe
defines a point on the object that
yields its three coordinates.
store, manipulate, and output,
geographically referenced data
(i.e. geographic information). Any
data referenced to a location on
the Earth can be considered geographic information. All geographic information has three components: the attribute of interest
(i.e. a measurement or class such
as temperature or forest type),
the location to which the attribute refers, and time (i.e. the
moment or period of time when
the attribute was observed).
Electronic Distance
Measurement (EDM)
EDM is based on the idea that
light travels at a finite velocity
and measures the time it takes
for a signal to travel back and
forth between two points. The
two primary technical principles
of electronic distance measurement are (1) time of flight – the
direct measurement of the time
elapsed between the emission
and the reception of a light pulse,
and (2) phase difference – the
measurement of the difference
between the emitted and reflected light while its emitted intensity is continuously changed
in intensity over time.
GNSS/GPS – Global Navigation
Satellite Systems
These satellite-based systems
provide signals for positioning
and navigation. GNSS includes,
but is not limited to, GPS, the
Russian supported Glonass system, the planned European
Galileo system and various ancillary systems such as WAAS
for North America, a system of
satellites launched by the USA
Department of Defense. The constellation of Navstar satellites
that orbit the Earth provide position and time information by
emitting radio signals.
Geomatics
The science or profession related to the process of capturing
and using spatial data through
information technology. Broad
ranges of applications are part
of, or associated with, geomatics,
including surveying, geography,
and mapping.
Georeference
The established relationship
between any kind of data like
the page coordinates on a planar map or an aerial image and
the real-world coordinates.
GIS (Geographic
Information System)
An integrated set of hardware
and software designed to input,
46
Leica Geosystems
Annual Report
GPS Reference Station
A GPS receiver based on a fixed
point, providing its measurements to roving (i.e. mobile or
moving) receivers in order to
allow those receivers to improve
their positioning accuracy.
Laser Scanner
Captures reality by digitizing an
object with a laser. Every transmitted laser pulse is used to
measure a distance to the point
of reflection, and simultaneously,
horizontal and vertical angle
measurements are taken. These
basic measurements are used to
calculate three-dimensional coordinates for individual points.
A Laser Scanner is typically able
to measure between 1,000 and
2,000 points per second to an accuracy of less than 1 centimeter.
Laser Scanning
A technique to capture reality in
a three-dimensional manner.
A typical laser scanning system
consists of a Laser Scanner to
acquire the Cloud of points and
a PC-based software package
to visualize and further process
the data.
Laser Tracker
A dynamic tracking laser interferometer. The instrument uses
an interferometer beam targeted
onto a retro-reflector. If the reflector moves, the return beam
shifts laterally. This shift is detected and the tracker moves to bring
the beam back on line again. In
this way a tracking mechanism
is established. The angle and interferometer readings are continuously monitored and converted
into three-dimensional coordinates at 1,000 times per second,
the rate at which a moving reflector can be tracked in space.
LIDAR
An acronym for LIght Detection
And Ranging, is often used as a
synonym for EDM.
Metrology
The science of dimensional
measurement in one, two, and
three dimensions.
Photogrammetry
The application of photographic
principles to the science of mapping – the science of obtaining
reliable spatial measurements
from imagery.
Pointcloud/Cloud of points
The result of scanning an object
or a scene in reality with a Laser
Scanner. A Cloud of points typically consists of thousands of
individual points, which generate a digitized, fully three-dimensional representation of the
scene or object in question. Each
point within a Cloud of points
is defined by three coordinates
(x, y, z), as well as other additional information like color or
reflectivity. Clouds of points serve
as a basis to visualize the captured objects on a PC and/or to
extract geometrical information
from the scanned objects to
serve a multitude of applications.
Portable CMM (PCMM)
Instruments
Mobile CMMs that enable the instrument to be brought closer to
the object in question. Portable
CMMs may be laser trackers, digital photogrammetry (videogrammetry) systems, total stations,
laser scanners or articulated arms.
Remote Sensing
A group of techniques for collecting images or other forms of
data about an object from measurements made at a distance
from the object, and the processing and analysis of the data.
Remote Sensing can be categorized into the following subsystems:
Active System. A remote sensing system that transmits its
own electromagnetic emanations at an object(s) and then
records the energy reflected
or refracted back to the
sensor. Radar is an example
of an active system. It sends
out pulses of microwaves
and then receives the echo
reflected from the target.
Passive Sensing. A sensing system that detects or measures
radiation emitted or reflected
by the target. The signal received by the passive sensor
may be composed of energy
emitted by the atmosphere,
reflected energy from the surface, energy emitted by the
target, or energy transmitted
then emitted by the surface.
Aerial Sensing. Remote sensing from an airborne platform.
Satellite Sensing. Remote
sensing from a satellite platform.
Terrestrial Positioning
Systems (TPS)
Systems that measure angles
and distances by using a combination of lenses, prisms and
mirrors, together with associated
laser technologies and software
applications, in traditional surveying products such as levels,
theodolites, distancers and total
stations.
Theodolite
An instrument for measuring
angles from a measuring station
to a remote target point. The
pointing is made using a telescope, which rotates about two
intersecting orthogonal axes. The
horizontal and vertical angles
measured on these axes define
the pointing.
Three-Dimensional Digitizing
and Visualization
A variety of technologies that
facilitate the rapid acquisition,
management, handling and
representation of enormous
volumes of spatial data. Today,
multicamera systems and,
increasingly, laser scanners are
used for data acquisition.
Whereas camera systems need
extensive computer processing,
laser scanners deliver a 3-D
digital model directly.
Total Station
A theodolite equipped with an
integrated electronic distance
meter, which enables it to measure a distance along the line of
sight.
Triangulation
A technique by which targets
are located in a global coordinate
system by measurement of directions from two or more fixed
and known locations to the same
target (intersection).
Glossary
47
Disclaimer
Publishing Details
Under the safe harbor provisions of the U.S. Private
Securities Litigation Reform
Act of 1995, we caution investors that all statements other
than statements of historical fact included in this document,
including without limitation, those regarding our financial
position, business strategy, plans and objectives of management for future operations (including development plans and
objectives relating to our existing and future products), are
forward-looking statements. Such forward-looking statements
involve known and unknown risks, uncertainties and other
factors, which may cause our actual results, performance or
achievements, or industry results, to be materially different
from any future results, performance or achievements expressed or implied by such forward-looking statements. Such
forward-looking statements are based on numerous assumptions regarding our present and future business strategies and
the environment in which we expect to operate in the future.
Important factors that could cause our actual results, performance or achievements to differ materially from those in the
forward-looking statements include, among other factors:
(i) our ability to develop and introduce new products and
technologies that gain market acceptance on a timely basis;
(ii) our ability to respond to competitive challenges, such as
the introduction of innovative products or technologies by
our competitors; (iii) our ability to identify and realize growth
opportunities; and (iv) overall levels of investment in infrastructure and capital spending in our markets. Additionally,
any forward-looking statements speak only as of the date of
this document. We expressly disclaim any obligation or undertaking to release publicly any update of or revisions to any
forward-looking statement contained herein to reflect any
change in our expectations with regard hereto or any change
in events, conditions or circumstances on which any such
statement is based.
Editor
George Aase, Director Investor Relations,
Leica Geosystems AG, Heerbrugg, Switzerland
48
Leica Geosystems
Annual Report
Concept and design
Ramstein Ehinger Associates AG, Basel/Zurich, Switzerland
Text
Michael Johnson, Zurich, Switzerland
Lithography
Blue Horizon AG, Winterthur , Switzerland
Printing
Printlink AG, Wetzikon, Switzerland
This Annual Report is published in English and German.
In the case of inconsistencies in the German translation,
the English original version shall prevail.
Photo Credits
Illustrations
André Wetter, Fislisbach, Switzerland; Ramstein Ehinger
Associates, Basel/Zurich, Switzerland: cover, pp. 2, 10, 20, 28
Photography
Amberg Messtechnik AG, Regensdorf, Switzerland: p. 28
Apostrophe Films Pte Ltd, Singapore: p. 13
Howard Brundrett, Meilen, Switzerland: pp. 7, 9, 15, 17, 19,
26, 37, 39, 41
Corbis: p. 10
Dave Dawson, Dave Dawson Photography, USA: p. 33
Getty Images: pp. 20, 23, 24, 25
Imagepoint: p. 2
Institut für Kunstgeschichte, Universität Bern, Switzerland,
Prof. Dr. Volker Hoffmann, Nikolaos Theocharis: pp. 10,11
Leica Geosystems AG, Heerbrugg, Switzerland: pp. 15, 32,
34, 36, 38, 40 (products)
Jonathan Kung, USA: p. 35
Opus, Copenhagen, Denmark: cover, pp. 2, 10, 20, 28
Prime 8 Photo, USA: pp. 16, 37
Prisma Dia: cover
Wolf Survey & Mapping, Canada: p. 25 (portrait)
Whether building a house or a bridge, a map or an aircraft, you
need reliable measurements. That’s why more companies trust Leica
Geosystems to collect, analyze, and present spatial information.
When it has to be right.
Investor & Financial Media Contact
George Aase
Director Investor Relations
Phone +41 71 727 30 64
[email protected]
Corporate Communication
Nicholas Bloch
Head of Corporate Communication and
Public Relations
Phone +41 71 727 42 52
[email protected]
Leica Geosystems AG
CH-9435 Heerbrugg
Switzerland
Phone +41 71 727 31 31
www.leica-geosystems.com
- when it has to be right

2005-06-09 Annual Report FY05 English

Transcription

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