www.axis.com

Full year report January – December 2012

Ray Mauritsson, CEO & President

Fredrik Sjöstrand, CFO

www.axis.com

> Founded in 1984

> IT company driving the shift towards digital video

surveillance products

> Global partnerships through distributors, resellers and

system integrators

> Offering the market’s broadest portfolio of network video

products

> Worldwide presence in 41 countries, 1 403 employees*

> Listed on NASDAQ OMX, under the ticker AXIS

This is Axis

*December 31, 2012

www.axis.com

> General cautiousness due to global

macroeconomic uncertainty

> Market leader in video surveillance*

> Successful product launches and prestigious

technology awards

> Positive trend for offering to small installations

> Continued global expansion

> Axis to Nasdaq OMX Stockholm Large Cap

Highlights 2012

Source: IMS Research 2012

www.axis.com

> January-December

– 4 184 MSEK (3 578)

– Growth 17%

– Currency effects 91 MSEK

> October-December

– 1 180 MSEK (1 051)

– Growth 12%

– Currency effects 29 MSEK

MSEK Growth

Sales

0%

10%

20%

30%

40%

50%

0

200

400

600

800

1000

1200

Sales Growth

www.axis.com

Currency effects on total sales by region

-25-15

-55

1525354555

EMEA Americas Asia

Q1 12

Q2 12

Q3 12

Q4 12

MSEK

www.axis.com

Operating expenses Q1 2010 – Q4 2012

0

50

100

150

200

250

Sales & Marketing

Administration

Research &

Development

MSEK

www.axis.com

EBIT and Gross margin*

> Gross margin

– 50,9 % (50,8%)

> Operating margin

– 17,5 % (18,3%)

> Profit margin

– 17,4 % (18,2%)

MSEK Margin

0%

10%

20%

30%

40%

50%

60%

0

40

80

120

160

200

240

EBIT Gross margin EBIT margin* Q4, 2012

www.axis.com

Regional highlights Q4

Asia

EMEA

Americas • Growth in line with the market, 14 % in local currency

• 47 % of total sales

• High penetration of network video

• Growth slower than the market, 12 % in local currency

• 41 % of total sales

• Growth rate varies between countries

• Growth higher than the market, 34 % in local currency

• 12 % of total sales

• Continued investments for high growth

www.axis.com

Global highlights 2012

Partner

People

Products • Launched more than 30 new innovative products

• New offering for smaller installations

• Introducing new technology throughout the portfolio

• High pace in recruitment, 276 new employees

• Focus on sales organization

• Making sure to keep the Axis culture

• More than 55 000 partners globally

• High pace in market events

• Educating the market through Axis Certification Program and

Axis Communication Academy

www.axis.com

Axis long term strategy

Focused on

network video

Expert partner

network

Global reach,

local presence

High launch rate 41 countries 55 000 partners

www.axis.com

Innovative products

New technology Efficient solutions Broad perspective

Cutting edge technology

Create trends

High launch rate

Broadest product portfolio

Meet specific needs

Improve big sellers

Improved sales offer

Stronger relationships

Facilitated use

www.axis.com

Global reach with local presence

Asia EMEA Americas

*countries with local presence

50% of total sales

7 countries*

38% of total sales

23 countries* 11 countries*

12% of total sales

137 employees 1 050 employees 216 employees

www.axis.com

Business model

Resellers

Distributors

System integrators

End customers

www.axis.com

Video surveillance market

Strong growth potential

Many key drivers

Technology shift

www.axis.com

Video surveillance market

Source: IMS Research 2012

Network Video

Surveillance

Analogue Video

Surveillance

Others

(i.e monitors and

housing)

2011

$ 10,5 billion

2016

$ 20,5 billion

• Total market growth of 14%

• Total network video growth of 24%

www.axis.com

Convergence in the video surveillance market

Analogue

video

Small systems Large systems

• Technology shift just starting

• High growth potential

• Cost efficient and easy-to-use

solutions

• IP technology fully accepted

• Well penetrated market

• Quality, functionality and scalability

in focus

Network video Analogue video

www.axis.com

Product launches 2012

AXIS M30-series AXIS Camera Companion AXIS P12-series

Suitable for banks, offices,

retail and schools

360° surveillance

High resolution

Ideal for ATM:s, banks

and retail

Discrete surveillance

High performance

Innovative solution for

small systems

Positive trend since launch

Broad product offering

www.axis.com

Emerging Markets

27%

Mature Markets

73%

Mature vs. Emerging – Network Video Market

Emerging Markets

47%

Mature Markets

53%

Axis 2012 IMS 2015

www.axis.com

> Short term perspective

– Macroeconomic uncertainty

– Keep market leading position

– High pace in new product launches

– Continued focus on expansion and recruitment

> Long term perspective

– Good market conditions for a continued positive

development within network video,

20-25 percent growth

Outlook

www.axis.com

Thank you!

network video

innovation

glo

bal

HD

TV

part

ner

netw

ork

leader

camera

protect

outdoor

image usability

leader

safe

therm

al

easy installation

inte

llig

en

t

open

integration ease of use

competence

megapixel

environment

worldwide

H.264

focus

Axis

video encoder

co

nve

rge

nce

Get the Axis picture. Stay one step ahead.