Investment case

The investment case aims to show significant value drivers for the INVISIO share. In recent years the company has made considerable investments in both the customer offer and its sales organization. The investments have resulted in a new offer – the Intercom system – and sales offices in the USA, France and Italy.

In 2019 INVISIO’s market position was further strengthened through successes in the USA and the procurement contracts won for police authorities in Europe and Japan. The sales target for INVISIO is average annual growth of 20 per cent. The target for the operating margin is that it should not fall below 15 per cent.

Steady growth but unevenly distributed order inflow

INVISIO’s market is characterized by large procurements at irregular intervals. Both order intake and sales can fluctuate substantially between quarters and the company’s development should therefore be evaluated in a longer time perspective than individual quarters.

Financial development and investments in R&D

Good long-term
organic growth

  • INVISIO’s average annual growth – which was entirely organic – during the period 2015-2019 was 20.6 per cent.
  • Sales growth in 2019 was 45 per cent.
  • The market for INVISIO’s system is not cyclically dependent and is growing structurally.

Sound profitability
enables offensive R&D

  • The gross margin for the period 2015-2019 was on average 56 per cent. For 2019 the gross margin was 61 per cent.
  • The average operating margin for 2015-2019 was 23 per cent. For 2019 the operating margin was 26 per cent.
  • Investment in R&D for 2015-2019 corresponded on average to 13 per cent per year of the company’s total revenue, allowing offensive product development in close collaboration with key customers.

Market characteristics and market position

Growing niche market with high entry barriers

  • The market is growing structurally as communication becomes increasingly important for police and military personnel. An increasing number of radio users benefits INVISIO.
  • According to the US Department of Veterans' Affairs, at the close of 2018 tinnitus and hearing loss together accounted for about 13 per cent of the total number of claims for which American veterans receive compensation. Hearing related claims are the second largest claim category.
  • Entering the market and winning a public procurement takes several years.
  • High entry barriers have meant that the market has few suppliers.

Growth strategy and corporate culture

Broadened customer offer, new user categories and geographical markets

  • The new Intercom system is a unique solution developed together with customers and originating from their needs. The market for the system is estimated to be worth about SEK 7 billion. The Intercom system is an entirely new source of revenue for INVISIO.
  • The police is a new user group. The market for the personal system intended for the police is about SEK 1.5 billion and has considerable potential. INVISIO won a major 2-year contract with the option of a 2-year extension with the Swedish Police Authority in 2019.
  • NVISIO addresses new geographical markets in South America, the Middle East and Asia, with the aim of receiving more orders in 2020.

Strong corporate culture

  • INVISIO’s corporate culture is strong. Clear targets and incentive programs that include all employees help to motivate and strengthen employees.
  • The company’s staff turnover is low and was 3 per cent in 2019. 
  • The company has an experienced leadership with many years of cooperation behind it. The President/CEO, the SVP Global Sales & Marketing and the SVP R&D have each worked for INVISIO for more than 12 years.