About Axis Communications Axis offers intelligent security solutions that enable a smarter, safer world. As the global market leader in network video, Axis is driving the industry by continually launching innovative network products based on an open platform - delivering high value to customers through a global partner network. Axis has long-term relationships with partners and provides them with knowledge and ground-breaking network products in existing and new markets. Axis has more than 1,600 dedicated employees in more than 40 countries around the world, supported by a network of over 60,000 partners across 179 countries. Founded in 1984, Axis is a Sweden-based company listed on NASDAQ OMX Stockholm under the ticker AXIS. For more information about Axis, please visit our website www.axis.com.

Performance in line with expectations

Year-end report 2013

Ray Mauritsson President

The fourth quarter > Net sales increased by 10 percent during the fourth quarter to SEK 1,299 M (1,180). Net sales increased by 12 percent in local currencies

> Operating profit decreased to SEK 166 M (207), which corresponds to an operating margin of 12.8 percent (17.5)

> Profit after tax amounted to SEK 117 M (163) > Earnings per share amounted to SEK 1.68 (2.35) > The board proposes a dividend of SEK 5.50, of which SEK is 3.00 an extra dividend (SEK 5.00 of which SEK 2.75 was an extra dividend)

January - December > Net sales increased by 13 percent during the period to SEK 4,717 M (4,184). Net sales increased by 17 percent in local currencies

> Operating profit increased to SEK 640 M (575), which corresponds to an operating margin of 13.6 percent (13.8)

> Profit after tax amounted to SEK 479 M (427) > Earnings per share amounted to SEK 6.89 (6.15)

The trend in 2013 was in line with our current view of the global

market growth for network video. Full-year sales increased by 17

percent in local currency. Sales in the fourth quarter was in line

with the strong third quarter. The year was characterized by large

growth variations between quarters.

The rate of innovation is still high and our product portfolio was

strengthened by a number of new and advanced network cameras.

During the quarter, the first orders of Axis’ access control solution

were also delivered to distributors in the US. The reception has

been very positive and we are convinced that this will strengthen

Axis’ offering and position among our partners.

The organization was strengthened by 35 employees during the

quarter. By the end of the year Axis had 1627 employees all

over the world. After several years of very high recruitment, the

hiring rate was adjusted in 2013 to become more aligned with

the current market growth.

We are continuing to strengthen our global network and the

number of partners exceeded 65,000 during the year. The efforts

to develop the market through training and certification programs

are continuing at a high pace.

It is difficult to predict the trend for 2014. At present, we are

maintaining our current view of the market trend. By continuing

to develop solutions for new customer segments and markets,

while strengthening our offering in existing markets, Axis is well-

positioned to continue its global expansion and reinforce the

company’s market-leading position.

2

Events during the fourth quarter Continuing variations between quartersThe growth rate varied sharply between quarters. The fourth quarter trend was slightly

weaker than Axis’ estimate of the current growth in the network video market. Overall,

sales for the full-year were in line with the expected growth rate. The development in the

number of product inquiries still remains at a steady level.

Maintained high rate of innovationA number of new products and solutions were released during the quarter. In October, the

AXIS Q1765-LE was introduced, a network camera equipped with built-in IR functionality.

The outdoor-ready camera is ideal for around-the-clock surveillance of large areas and long

distances. The AXIS Q1614 and AXIS Q1614-E are equipped with advanced technology allowing

indoor and outdoor-ready surveillance in demanding lighting conditions. Thanks to high

frame rates the cameras are well-suited for industrial applications and traffic monitoring,

for example. In December, the fifth generation of Axis proprietary chip – ARTPEC-5 was

introduced. The chip has been improved with more processing power and better performance

in order to meet the increasing demand for intelligent video processing and video analytics

applications. Meanwhile, ARTPEC-5 allows advancement of image quality, reduced power

consumption and faster image processing, which is saved directly in the camera’s SD card.

In December, a number of new network cameras were also released in the Axis Q60 series.

The cameras belong to Axis’ most advanced product series with enhanced features in terms

of image quality, light sensitivity and intelligent video analytics. The cameras are ideal for

airports, critical infrastructure, seaports and stadiums.

Continued growth and expansionThe number of employees increased by 35 people during the fourth quarter. During the full-

year 2013, the total number of employees increased by 224 people. After several years with

a very high rate of recruitment, the hiring rate was adjusted during the year to become more

aligned with current market growth. During 2013, Axis continued to conduct a comprehensive

introduction program for new employees. A number of training initiatives were carried out

aimed at ensuring that the overall competencies are used and spread in the best possible way

within the organization. The work on strengthening the global partner network is continuing

as planned. At year-end, Axis had more than 65,000 partners throughout the world.

Successful organizationIn November, Axis’ President Ray Mauritsson, received the award ‘CEO of the Year 2013’ for

the large company category from the organization Motivation.se and Executive People. The

prize was awarded for having strengthened the company’s position as market leader through

successfully leadership while maintaining the already strong corporate culture during a

period of high recruitment. In December, Axis received the ‘Prix d’Excellence’ award from the

Swedish Chamber of Commerce in France. Axis received the award for its successes in the

French market, for its innovative strategy and for its significant contribution to developing

the security market.

650700750800850900950

100010501100115012001250130013501400

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2012 2013

1205

1265

1333

1403

14701450

152115001550160016501700

15921627

Number of employees

3

Comments on the income statement and balance sheetNet salesThe fourth quarter

Net sales for the fourth quarter amounted to SEK 1,299 M (1,180), which was an increase

of 10 percent. Growth was 12 percent in local currency. Foreign currency effects had a

negative impact on sales of SEK 17 M.

Sales in the EMEA region amounted to SEK 537 M (485) during the fourth quarter,

corresponding to growth of 11 percent. Growth was 9 percent in local currency. The growth

rate varied among the different countries of the region. The region is growing somewhat

slower than the network video market as a whole and some uncertainty persists regarding

investments in larger surveillance solutions.

Sales in the Americas region amounted to SEK 580 M (556) during the fourth quarter,

corresponding to growth of 4 percent. Growth was 7 percent in local currency. During the

fourth quarter, lower inventory levels were noted among some distributors compared to

previous quarters. Axis still has a strong position in the region and underlying demand lies

at a steady level.

Sales in the Asia region amounted to SEK 181 M (139) during the fourth quarter, corresponding

to growth of 31 percent. Growth amounted to 39 percent in local currency. Axis continues

to pursue a high rate of expansion and recruitment in order to strengthen its position in

the region. Demand for network solutions is strong and Axis still has ambitious growth

targets in the Asian market.

Full-year 2013

Net sales for the year totaled SEK 4,717 M (4,184), an increase of 13 percent in Swedish

kronor and 17 percent in local currency. Foreign currency effects, primarily from USD and

EUR, impacted sales negatively during the year by SEK 170 M. The performance during the

year in Axis’ different regions varied to some extent. The Americas region, which accounted

for about 50 percent of total sales during the year, displayed sales growth of 16 percent in

local currencies, which Axis estimates as being in line with the market as a whole. Sales in the

EMEA region increased by 13 percent in local currencies. Sales in the Asia region increased

by 30 percent during 2013 in local currencies.

Invoiced sales per product group (SEK M)

Q4 2013

Q4 2012

Full-year 2013

Full-year 2012

Video 1,296.6 1,177.5 4,708.0 4,158.2

Other 1.9 2.0 8.8 25.3

TOTAL 1,298.5 1,179.5 4,716.8 4,183.5

Invoiced sales per region (SEK M)

Q4 2013

Q4 2012

Full-year 2013

Full-year 2012

EMEA 537.1 484.9 1,764.1 1,578.6

Americas 580.0 555.9 2,363.8 2,117.5

Asia 181.4 138.7 588.9 487.4

TOTAL 1,298.5 1,179.5 4,716.8 4,183.5

Sales

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900

1000

0

10

20

30

40

50

1100

1200 60

1300

1400 70

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2012 2013

Sales SEK M

Total growth %

Invoicing per region,Q4 2013

Americas

EMEAAsia

45 %

41 %14 %

SEK M %

Sales per region, SEK M

EMEA Americas Asia

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150

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350

400

450

500

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650

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2012 2013

4

EarningsThe fourth quarter Operating profit during the fourth quarter amounted to SEK 166 M (207), which corresponded to an operating margin of 12.8 percent (17.5). The slightly lower operating profit was largely due to a weaker sales growth during the quarter. Gross margin continued to be stable and amounted to 50.9 percent (50.9) in the fourth quarter. Profit before tax was SEK 166 M (205). Profit after tax amounted to SEK 117 M (163). Changes in foreign exchange rates impacted operating profit positively by SEK 6 M, compared to the corresponding period of the previous year.

Full-year 2013The Group’s operating profit during the year amounted to SEK 640 M (575), which corresponds to an operating margin of 13.6 percent (13.8). Gross margin amounted to 51.5 percent (50.3). Profit before tax was SEK 637 M (569) and profit after tax was SEK 479 M (427). Changes in foreign exchange rates impacted operating profit negatively by SEK 44 M, compared to the previous year.

Condensed income statement, (SEK M)

Q4 2013

Q4 2012

Full-year 2013

Full-year 2012

Net sales 1,298.5 1,179.5 4,716.8 4,183.5

Gross profit 660.6 600.5 2,430.2 2,103.5

Gross margin (%) 50.9 50.9 51.5 50.3Operating profit 166.0 206.7 640.3 575.3

Operating margin (%) 12.8 17.5 13.6 13.8Profit before tax 165.5 204.7 637.2 568.8

Cash flow, investments and financial positionCash flow from operating activities for the full-year amounted to SEK 478 M (361). The strong

cash flow during the year was largely due to the strong operating profit. Net investments

totaled SEK 117 M (79), of which capitalized development costs amounted to SEK 53 M

(30). Sales late in the quarter contributed to an increase in trade receivables and thereby

reduced cash flow from operating activities. Axis had SEK 338 M (465) in cash and cash

equivalents at year-end, as well as unutilized credit facilities of SEK 500 M (360). Accordingly,

the company had a total of SEK 838 M (825) at its disposal at December 31, 2013.

EquityConsolidated equity amounted to SEK 937 M (810). The total number of shares at year-end was 69,461,250 (69,461,250). Axis has no outstanding stock option programs. The group’s equity/assets ratio was 48.2 percent (47.7) at December 31, 2013.

(SEK M) Share capital Other contributed

capital Other

reservesRetained earnings

Total equity

Opening balance at Jan 1, 2012 0.7 279.2 -10.0 498.7 768.6Total comprehensive income for the period

- - -4.1 427.3 423.2

Dividend - - - -382.0 -382.0

Closing balance at Dec 31, 2012 0.7 279.2 -14.1 544.0 809.8

Opening balance at Jan 1, 2013 0.7 279.2 -14.1 544.0 809.8Total comprehensive income for the period

- - -4.5 478.9 474.4

Dividend - - - -347.3 -347.3

Closing balance at Dec 31, 2013 0.7 279.2 -18.6 675.6 936.9

Parent CompanyThe parent company’s operations are primarily focused on company-wide administration.

The parent company has no employees. During the period, sales amounted to SEK 26 M (26)

and operating profit amounted to SEK -11.5 M (-10.5). Cash and cash equivalents at the

end of the period amounted to SEK 122.5 M (32.4) and borrowing was SEK 0 M (140). No

investments have taken place during the period.

Operating profit / EBIT

0

25

50

75

100

125

150

175

200

225

250

0

10

20

30

40

50

60

70

80

90

100

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2012 2013

EBIT SEK M

Gross margin %EBIT margin %

SEK M %

5

Outlook There is a continued steady inflow of new projects and the view on the market’s current

growth rate remains unchanged. Axis and external market research institutions estimate the

long-term global growth potential for the network video market at 20-25 percent annually.

An important factor for continued strong growth is increased penetration in installations

for smaller systems and in emerging markets. In order to meet market demand and retain

its position as the market-leading supplier of network video solutions, Axis will continue

to develop and release a large number of innovative products, refine the partner network,

recruit more employees and continue to expand globally.

OtherRisks and uncertainties Axis’ operations are subject to a further number of risks and uncertainties, which are described

in the 2012 Annual Report. No new material risks have arisen during the fourth quarter of 2013.

Accounting policiesThis interim report is prepared in accordance with the Swedish Annual Accounts Act and IAS 34,

Interim Financial Reporting. For information on the accounting policies applied, see the 2012

Annual Report. The accounting policies are unchanged compared with those applied in 2012.

Nominating Committee Axis’ Nominating Committee is composed of representatives from the three largest shareholders;

Christer Brandberg (Inter Indu AB), Therese Karlsson (LMK Industri AB) and Martin Gren (AB

Grenspecialisten). Christer Brandberg is chairman and convenor. Proposals and views from

shareholders concerning the composition of the board may either be submitted in writing to

the address: Axis AB, attn. Adrienne Jacobsen, Emdalavägen 14, 223 69 Lund, or by phone

+46 46 272 18 00.

Annual General MeetingAxis’ Annual General Meeting will be held on April 28, 2014 at 5 p.m. in the Scandic Star

Hotel, Glimmervägen 5, Lund, Sweden.

The Axis share The company’s share is listed on NASDAQ OMX Stockholm in the Large Cap segment, under

the ticker AXIS. Axis’ share had a turnover of 32,068,695 shares during the period January-

December 2013, which gave an average turnover of 128,275 shares per trading day, to a

value of SEK 24,100,281. The average price of the share during the period was SEK 185.6.

Reporting dates Axis will report on the following dates during the 2014 fiscal year:

Year-end report: January 31, 2014Interim report, January-March: April 24, 2014Interim report, January-June: July 9, 2014Interim report, January-September: October 16, 2014

Lund, January 31, 2014 Ray Mauritsson President

6

Review report Review report of condensed interim financial information (Interim report) prepared in

accordance with IAS 34 and Chapter 9 of the Swedish Annual Accounts Act.

IntroductionWe have reviewed this interim report for the period January 1-December 31, 2013 for Axis

AB (publ). The board of directors and the president are responsible for the preparation

and presentation of this interim financial information in accordance with IAS 34 and the

Swedish Annual Accounts Act. Our responsibility is to express an opinion on this interim

financial information, based on our review.

The focus and scope of the reviewWe conducted our review in accordance with the Standard on Review Engagements, (SÖG)

2410, Review of Interim Financial Information Performed by the Independent Auditor of

the Entity. A review of the interim report consists of making inquiries, primarily of persons

responsible for financial and accounting matters, and applying analytical and other review

procedures. A review has a different focus and is substantially less in scope than an audit

conducted in accordance with International Standards on Auditing (ISA) and other generally

accepted auditing standards in Sweden. The procedures performed in a review do not enable

us to obtain a level of assurance that would make us aware of all significant matters that

might be identified in an audit. Accordingly, the conclusion expressed based on a review

does not constitute the same level of assurance as a conclusion based on an audit.

ConclusionBased on our review, nothing has come to our attention that causes us to believe that the

Interim Report, in all material respects, is not prepared for the group in compliance with

IAS 34 and the Swedish Annual Accounts Act and for the Parent Company in compliance

with the Swedish Annual Accounts Act.

Lund, January 31, 2014PricewaterhouseCoopers AB

Ola BjärehällAuthorized Public AccountantAuditor in charge

7

Consolidated comprehensive income

(SEK M)Q4

2013Q4

2012Full-year

2013Full-year

2012

Net sales 1,298.5 1,179.5 4,716.8 4,183.5

Cost of goods and services sold -637.9 -579.0 -2,286.6 -2,080.0

Gross profit 660.6 600.5 2,430.2 2,103.5

Other revenues and changes in value 3.5 7.1 -8.0 -30.0

Selling and marketing expenses -240.5 -199.5 -864.4 -747.5

Administrative expenses -55.3 -47.7 -208.9 -171.0

Research and development expenses -202.3 -153.7 -708.6 -579.7

Operating profit * 166.0 206.7 640.3 575.3

Financial expenses -0.5 -2.0 -3.1 -6.5

Profit before tax 165.5 204.7 637.2 568.8

Tax -48.5 -41.8 -158.3 -141.5

Net profit for the period 117.0 162.9 478.9 427.3

Other comprehensive incomeItems that later may be transferred to the income statement Exchange differences 0.4 -1.6 -4.5 -4.1

Other comprehensive income for the period, net after tax 0.4 -1.6 -4.5 -4.1

Total comprehensive income for the period 117.4 161.3 474.4 423.2

Total comprehensive income attributable to:

Parent Company’s shareholders 117.4 161.3 474.4 423.2

Earnings per share for the period, SEK 1.68 2.35 6.89 6.15

Number of shares, average, thousands 69,461 69,461 69,461 69,461

*Net effects of changes in exchange rates in underlying receivables and liabilities in foreign currencies have impacted operating profit positively by SEK 3 M (positi-vely by SEK 7 M) in the fourth quarter and negatively by SEK 9 M (negatively by SEK 28 M) during the full-year 2013.

Consolidated statement of cash flows

(SEK M)Q4

2013Q4

2012Full-year

2013Full-year

2012Cash flow from operating activities before change in working capital

130.9 160.4 567.6 416.7

Change in working capital -155.9 205.7 -90.1 -56.1

Cash flow from operating activities -25.0 366.1 477.5 360.6

Cash flow from investing activities -32.4 -25.1 -117.0 -79.1

Cash flow from financing activities 2.4 -66.9 -487.3 -242.0

Cash flow during the period -55.0 274.1 -126.8 39.5Cash and cash equivalents at the start of the period 392.7 190.4 464.5 425.0

Cash and cash equivalents at the end of the period 337.7 464.5 337.7 464.5

8

Consolidated balance sheet (SEK M) Dec 31, 2013 Dec 31, 2012Non-current assets 270.5 210.9

Inventories 636.8 536.0

Trade receivables* 592.0 391.9

Other receivables 105.9 92.8

Cash and cash equivalents 337.7 464.5

Total 1,942.9 1,696.1

Equity 936.9 809.8

Non-current liabilities 163.5 124.6

Trade payables 439.1 314.3

Other current liabilities 403.4 447.4

Total 1,942.9 1,696.1

*This item includes receivables from contract manufacturers of SEK 68 M (30).

Key ratios Q4

2013Q4

2012Full-year

2013Full-year

2012Net sales growth (%) 10.1 12.2 12.7 16.9

Gross margin (%) 50.9 50.9 51.5 50.3

Operating margin (%) 12.8 17.5 13.6 13.8

Profit margin (%) 12.7 17.4 13.5 13.6

Depreciation/amortization (SEK M) * 55.0 50.0 55.0 50.0

Shareholders’ equity (SEK M) 937 810 937 810

Capital employed (SEK M) 984 991 984 991

Interest-bearing liabilities (SEK M) - 140 - 140

Net interest-bearing liabilities/net receivables (SEK M) ** 338 325 338 325

Total assets (SEK M) 1,943 1,696 1,943 1,696

Return on capital employed (%) * 64.8 61.8 64.8 61.8

Return on total assets (%) * 35.2 34.7 35.2 34.7

Return on equity (%) * 56.9 53.1 56.9 53.1

Interest coverage ratio (times) * 206.5 88.5 206.5 88.5

Equity/assets ratio (%) 48.2 47.7 48.2 47.7

Share of risk-bearing capital (%) 54.2 52.7 54.2 52.7

Capital turnover ratio (times) 4.8 4.5 4.8 4.5

Number of employees (average for the period) 1,614 1,379 1,532 1,278

Sales per employee (SEK M) * 2.9 3.0 3.1 3.3

Operating profit per employee (SEK M) * 0.4 0.4 0.4 0.5 *The key figures have been recalculated to rolling 12-month values where appropriate. **Refers to net of interest-bearing receivables and liabilities.

Per-share data Dec 31, 2013 Dec 31, 2012

Share price at end of period, SEK 223.80 177.50

Paid dividend, SEK 5.00 5.50

P/E ratio 32 29

Earnings per share, SEK 6.89 6.15

Number of shares, average, thousands 69,461 69,461

Number of outstanding shares, thousands 69,461 69,461

9

Parent Company income statement

(SEK M)Full-year

2013Full-year

2012Net sales 25.9 25.7

Gross profit 25.9 25.7

Administrative expenses -37.4 -36.2

Operating profit -11.5 -10.5

Result from participations in group companies 451.6 540.4

Interest income and similar profit/loss items 1.8 15.8

Interest expenses and similar profit/loss items -20.5 -7.1

Profit before tax 421.4 538.6

Change in tax allocation reserve -31.8 -125.9

Tax -83.7 -98.5

Net profit for the period 305.9 314.2

Parent Company balance sheet(SEK M) Dec 31, 2013 Dec 31, 2012Non-current assets 10.2 12.6

Receivables from group companies 749.6 982.1

Trade receivables and other receivables 2.4 1.8

Tax receivables 15.1 20.0

Cash and cash equivalents 122.5 32.4

Total 899.8 1,048.9

Equity 383.7 425.1

Untaxed reserves 510.4 478.6

Liabilities to group companies 0.9 0.7

Current liabilities 4.8 144.5

Total 899.8 1,048.9

Quarterly dataInvoiced sales per product group (SEK ‘000)

Q42013

Q32013

Q22013

Q12013

Q42012

Q32012

Q22012

Q12012

Q42011

Q32011

Q22011

Q12011

Video 1,296.6 1,318.8 1,112.8 979.8 1,177.5 1,065.0 1,039.1 876.6 1,046.7 965.5 740.7 797.6

Other 1.9 3.6 1.6 1.7 2.0 14.2 4.4 4.7 4.2 5.7 6.4 10.7

TOTAL 1,298.5 1,322.4 1,114.4 981.5 1,179.5 1,079.2 1,043.5 881.3 1,050.9 971.2 747.2 808.3

Invoiced sales per region Q42013

Q32013

Q22013

Q12013

Q42012

Q32012

Q22012

Q12012

Q42011

Q32011

Q22011

Q12011

EMEA 537.1 511.1 362.5 353.4 484.9 384.9 377.0 331.8 452.1 374.1 320.9 332.2

Americas 580.0 653.0 617.9 512.9 555.9 569.9 542.7 449.0 495.3 499.7 350.0 394.6

Asia 181.4 158.3 134.0 115.2 138.7 124.4 123.8 100.5 103.5 97.4 76.3 81.5

TOTAL 1,298.5 1,322.4 1,114.4 981.5 1,179.5 1,079.2 1,043.5 881.3 1,050.9 971.2 747.2 808.3

Q42013

Q32013

Q22013

Q12013

Q42012

Q32012

Q22012

Q12012

Q42011

Q32011

Q22011

Q12011

Net sales growth (%) 10.1 22.5 6.8 11.4 16.9 11.1 39.7 9.0 20.1 31.8 10.2 25.8

Gross profit (SEK M) 660.6 696.2 568.1 505.3 600.5 548.2 515.1 439.7 533.7 499.7 382.4 411.5

Gross margin (%) 50.9 52.6 51.0 51.5 50.9 50.8 49.4 49.9 50.8 51.5 51.2 50.9

Operating profit (SEK M) 166.0 258.4 126.5 89.3 206.7 168.4 121.1 79.1 191.9 224.9 90.2 126.2

Operating margin (%) 12.8 19.5 11.4 9.1 17.5 15.6 11.6 9.0 18.3 23.2 12.1 15.6

Analyst & Press Conference

Axis will hold a teleconference for the media and financial analysts today. A presentation is

available at: www.axis.com/sv/corporate/investor/financial_reports.htm

Time: Friday, January 31 at 10.00 a.m.

Phone number: + 46 8 505 564 87

The presentation will be broadcast live on:http://financialhearings.nu/140131/axis/

This report contains future-oriented information that is based on the present expectations of

Axis’ Management. Even if the Management believes that the expectations reflected in such

future-oriented information are reasonable, no assurance may be given that these expectations

will prove to be correct. Consequently, actual future outcomes may deviate significantly from

what is reflected in the future-oriented information due to changed conditions relating to

the economy, market and competition, changes in legal requirements and other political

measures, fluctuations in exchange rates and other factors.

Axis discloses the information provided herein pursuant to the Swedish Securities Markets

Act and/or the Swedish Financial Instruments Trading Act. The information was released for

publication at 08.00 CET on Friday, January 31, 2014.

Axis AB (publ)

Corporate identity no. 556241-1065

Emdalavägen 14, 223 69 LUND

Phone: +46 46 272 18 00

www.axis.com

For further information please contact:Johan Lundin, Manager, Investor Relations

Mail: ir@axis.com

Tel: +46 46 272 18 00