Improved Earnings & Growth within Video Summary of 2004

M A K E Y O U R N E T W O R K S M A R T E R

Improved Earnings &

Growth within Video

Summary of 2004

Ray Mauritsson, CEO

Agenda

Summary 2004 and Axis today Video - growth and expanded

product portfolio Trends and market development

Two product areas

Network video solutions World leader Axis’ largest product area More than 400,000

installed units

Printer-servers Second on world market More than 3,000,000

installed units

2004 in brief

Improved profitability Growth within Video, +33% Broadened product portfolio 8 new patents, total 41 New partnership Awards

Financial performance 2004

Net sales: SEK 691 M (624) Operating profit: SEK 48 M (1) Profit before tax: SEK 57 M (8)

Q1-03 Q2-03 Q3-03 Q4-04 Q1-04 Q2-04 Q3-04 Q4-040

10

20

30

40

50

60

%

Q1,2005

Total growth, 15% Continued growth within Video,

+ 35% Continued development of product

portfolio Partner with HID New sales office in Canada

Financial performance, Q1 2005

Net sales: SEK 175 M (152) Operating profit: SEK 14 M (-5) Profit before tax: SEK 14 M (-5)

Sales Q1, 2005

Print22%Print22%

Video75%

Video75%

Other3%

Other3% Americas

30%Americas

30%

EMEA46%

EMEA46%

Asia24%Asia24%

New-generation video products

New compression techniques Higher resolution Maximum image transfer speed Wireless access Power over Ethernet Network Dome and PTZ cameras

Axis product portfolio, video

Customer segments

Retail

Bank Transportation

Government Education

Industrial

Customer case – Turning Torso

Axis’ cameras createsecurity in world-

renowned building

Technology trends

Smart cameras and integrated systems

New technologies create increased possibilities in image quality and functionality

Examples:¬ Megapixel ¬ Increased scaling¬ License plate identification¬ Digital PTZ

AXIS Image Enhancer - Example

In the fog outside Axis, Lund

Integrated systems

Develop industry’s first open interface and protocol standard (API)

Integrate video and passage control systems

Meet demands of security market

Technology shift is accelerating

WirelessMegapixelBroadband

Integration

Open system

Remote access

-98 -99 -00 -01 -02 -03 -040

50

100

150

200

250

300

350

400

450

500

SEK M

Video: Sales trend 1998-2004

Outlook 2005

Outlook 2005 Continued cooperation with partners Further development of product

portfolio

Long-term goals (3-5 years) 20% average annual growth for

Group 10% profitability Equity/assets ratio > 50%