AXIS Communications- a world of intelligent networks

Full year 2001

AXIS Communications- a world of intelligent networks

Full year 2001

CEO Peter RagnarssonCFO Jörgen Lindquist

Second half year 2001

Profitability andPositive Cash Flow

Financial performance

Profitability and Positive Cash Flow… Increased operational efficiency Reduced capital tied up in operations Loss-making operations sold

Strategic position

Year 2000

Network Infrastructure

(LAN, Internet, etc)

NetworkValue

Core offering

World class solutions for easy-to-use, secure and efficient communication over networks

Network Camera & Video Server

Worldwide #1

Markets and market positions

Network PrintingWorldwide #2

Network Scan & Store

Network WirelessAccess

Axis ThinServerTechnology

Investing for the connected future

Intensive R&D¬ IP-based network connectivity¬ Direct access¬ Fast, reliable, economic and

secure Seven new patents during

2001

End user

Business model - spreading risk

OEM

Axis

Nationaldistributor

Value addeddistributor

Resellerinstaller

An expanding customer base

Ingram Micro Azlan Adimpo MicroP Allnet Fibrenetix NSM Storage

EET Nordic Canon SONY Honeywell Securitas Minolta - QMS Panasonic

Some recent distribution and industrial partnerships...

A complete distribution network

Distributor partnerships¬Between 500 and 1,000 worldwide

Reseller & Installer partnerships¬Between 50,000 and 100,000 worldwide

Some of our OEM partnerships

Canon FujiXerox Minolta - QMS Sharp IBM

SONY Apti/JBCC Intermec Palm Epson Panasonic

Sales

Ongoing operations

0

100

200

300

400

500

600

700

Q4 Accum

2000*

2001

MSEK

12 months 2001Sales 676 MSEK (642)Growth 5%

* 2000 Proforma

Networked Office – Q4 2001

Strategic segment Profitable base Strengthened

positions

0

50

100

150

200

250

300

350

Q4 Accum

2000

2001

Sales (proforma 2000)MSEK

Office Connectivity OEM – Q4 2001

Continuous demand for built-in Axis solutions

Several major projects accounted for in Q4-2001

Strong orderbook 2002

0

25

50

75

100

125

Q4 Accum

2000

2001

Sales (proforma 2000)MSEK

Camera – Q4 2001

Digitalization Increased security

awareness

0

50

100

150

200

250

Q4 Accum

2000

2001

Sales (proforma 2000)MSEK

Mobile Internet – Q4 2001

Strategic area Technology and

market uncertainties Will be incorporated

in other areas

0

1

2

3

4

5

6

Q4 Accum

2000

2001

Sales (proforma 2000)MSEK

Technology – Q4 2001

Increasing demand Several strategic

customer contracts

0

1

2

3

4

5

Q4 Accum

2000

2001

Sales (proforma 2000)MSEK

Sales per division

Ongoing operations

MSEK 2001 2000 Networked Office 292 333 OEM 122 92 Camera 243 183 Technology 4 2 Other 9 31

ThinServer products 671 640 Mobile Internet 5 1

Total 676 642

Investing for the future

Intensive R&D agenda 151 MSEK year 2001 Corresponding to 22%

of sales

EBIT by Quarter

R&D overall¬ 32 MSEK in Q4-2001

New structure¬ 20 MSEK restructuring

costs in Q2-2001

Profitability as planned

proforma 2000

-80

-70

-60

-50

-40

-30

-20

-10

0

10EBIT Structural

MSEK

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2000 2001

EBIT analysis Q4-2001

Oct - Dec Oct - Dec MSEK 2001 2000

ThinServer products 20 1 Mobile Internet -4 -34 Corporate functions -8 -8

Axis excl. Netch 8 -41

Netch - -31 Total 8 -71

proforma Q4 2000

Ongoing operations, MSEK

Sales per Quarter

0

50

100

150

200

250

Q1 Q2 Q3 Q4

2000 2001

Gross margin

0

10

20

30

40

50

60

Q2-00 Q3-00 Q4-00 Q1-01 Q2-01 Q3-01 Q4-01

%

MSEK

Accounts receivables

Days of sales outstanding

0

10

20

30

40

50

60

70

80

Q1-00 Q2-00 Q3-00 Q4-00 Q1-01 Q2-01 Q3-01 Q4-01

0

10

20

30

40

50

60

70

80

90

Q1-00 Q2-00 Q3-00 Q4-00 Q1-01 Q2-01 Q3-01 Q4-01

Inventory

MSEK

Liquid funds

MSEK

0

25

50

75

100

125

150

175

200

Q3-00 Q4-00 Q1-01 Q2-01 Q3-01 Q4-01

Market trends

Generally weak market conditions expected to remain at least until mid 2002

Axis 2002

Innovating exciting market opportunities

Strong technology platform

Global markets Proven business model

spreading risk Profitable and cash flow

positive

Outlook 2002

Taking the next steps in our Network Value strategy

Despite weak market conditions, a positive EBIT and operational cash flow is expected

This is Axis

World class solutions for easy-to-use, secure and efficient communication over networks