AXIS Communications A world of intelligent networks Second quarter 2001 Presented by Peter Ragnarsson

Positioning Axis for profitability Axis will be profitable second half of 2001

Highlights - Structure Clear structure Netch sold Mobile Access Server sold Focus on network connectivity

Highlights - EBIT

Highlights - Sales Half year 2001 Sales 353 Mkr (320) Growth 10% ThinServers: +17% Netch: -45% (sold)

Highlights - Sales Axis grows in weak IT-market Global company Market positions Product portfolio Broad customer base Distribution channels

Highlights - EBIT Reduced production costs Productions problems solved Positive impact 3-5 percentage units Reduced overhead cost level Costs down >100 M annually Profitability second half of 2001

Segments Networked Office Professional buyers Organizations >50 employees Office connectivity OEM Industrial customers Camera IT Security / surveillance Technology Mobile Internet

Networked Office - sales q Total sales 73.4 Mkr (81.5) Growth –9.9% Strategic segment Profitable base

Office Connectivity OEM - sales q2 -01 Total sales 34.9 Mkr (21.7) Growth 60.8% Continuous demand for built-in printserver solutions

Camera - sales q Total sales 56.5 Mkr (44.4) Growth 27.3% Launch Axis 2420 Collaboration with Milestone

Camera New order approx. $ 1 M Mexican Election Authority (Instituto Federal Electoral) Axis Network Cameras part of integrated solution for producing Mexican ID-cards

Mobile Internet - sales q Strategic area Wireless technologies (WLAN, Bluetooth, etc) Platform Technology and market uncertainties

Highlights q EBIT Towards profitability as planned Axis (excl. structural costs) up 5.5 Mkr compared to q Heavy R&D investments Mobile Internet 25 Mkr R&D total 50 Mkr Structural changes

Highlights q EBIT Items influencing EBIT Temporary production problems solved in June, but unfavourable production allocation impacts also q2 Administrative costs related to restructuring activities Lay-off program -20 Mkr

EBIT analysis q (proforma q2-2000)

EBIT by quarter (proforma 2000) R&D overall 50 Mkr in q New structure 20 Mkr restructuring costs in q Restructuring costs in q4 and q1 relates to Netch Towards profitability as planned

ThinServer products - EBIT q Profitability in focus Action program reduces cost by 15% EBIT level improved significantly Action program impacts profitability from q3 and onwards

Mobile Internet products - EBIT q2 -01 Intensive R&D Total investment in q Mkr (19) Investment level reduced during 2001

Change in liquid funds – q2 2001

Balance sheet - assets

Balance sheet - liabilities & equity

Market trends 2001 Generally weak market conditions expected for the rest of year 2001 Market and technology delays in wireless area

Axis 2001 Focus on network connectivity Global presence Industry insider R&D portfolio Established channels to markets Track record

Outlook 2001 Profitable second half of year 2001