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

Axis Group ThinServers Printservers Scan servers CDservers Camera servers Technology Mobile Internet Access Points Mobile Access server Founded 1984 Listed on Stockholm stock exchange 2000 Founded 1984 Listed on Stockholm stock exchange 2000 Axis AB Netch 59% ( incl new issue 2001) nBand 11%

ThinServer products Print & Scan servers Global top 3 on network print solutions Camera servers Leader in network camera and video servers Storage servers Global n°1 market leader for CD/DVD servers Technology network solution platforms

Mobile Internet products Carrier class total system solutions for local mobile networks based on Bluetooth and WLAN (802.11) Access Points Mobile Access Server Subscriber management Security Positioning Network management I/f to billing & customer care systems

Axis history - four distinct phases IBM protocol conversion Europe 1st phase 2nd phase Print servers LAN environm. Asia 3rd phase ThinServers Storage USA 4th phase Camera Mobile Systems Globally

Highlights q Sales Sales growth following strategic investments Strategic partnerships Camera New distribution structure in Europe Market-oriented organization structure

Highlights q Sales Sales 176 Mkr (150) Growth 17% ThinServers: growth 23% Netch: negative growth -32%

Sales mix q1-2001

ThinServer products - sales q Total sales 162,5 Mkr (132,4) Growth total area 22,7% Strategic investment provides returns Strategic partnerships Camera New distribution structure in Europe Market-oriented organization structure Formation of Network Office and Office Connectivity OEM completed

Networked Office - sales q Total sales 75,5 Mkr (81,3) Growth -7,1% New market-oriented organization Professional buyers Organizations >50 employees Decrease in sales due to Storage products

Office Connectivity OEM - sales q Total sales 32,0 Mkr (12,2) Growth 161,4% Orientation towards industrial customers First deliveries to Canon of Bluetooth products (AXIS 5800 Mobile) in april 2001

Camera - sales q Total sales 52,3 Mkr (29,8) Growth 75,1% Cooperation with Honeywell in Taiwan Solution for remote monitoring of telecom infrastructure

Mobile Internet products - sales q Initial order from Canon First deliveries of Axis 9010 Bluetooth Access Points in april 2001 Mobile Access Server launched at CEBIT

Netch - sales q Netch is a supplier of strategic Internet services Axis holds 59% of Netch after the new issue (57,6 Mkr) in February 2001 Peter Ragnarsson Chairman of the Board in Netch from Dec Difficult market situation

Highlights q EBIT Towards profitability as planned Axis (excl. Mobile Internet) up 31,5 Mkr compared to q Heavy R&D investments Mobile Internet 24 Mkr R&D total 38 Mkr

Highlights q EBIT Extraordinary profit influence Q impact -5 Mkr temporary production problems write-off accounts receivable Netch impacted by re-structuring costs (announced in December 2000 report) total amount -31 Mkr

EBIT analysis q (proforma q1-2000)

EBIT by quarter (proforma 2000) R&D overall 38 Mkr in q Investments in Mobile Internet area 24 Mkr in q Netch restructuring costs 10 Mkr in q Mkr in q1-2001

ThinServer products - EBIT q Profitability in focus EBIT level improved significantly Extraordinary profit influence -5 Mkr temporary production problems write-off accounts receivable

Mobile Internet products - EBIT q Intensive R&D Total investment in q Mkr (14) Investment level reduced during 2001 Technology and market uncertainties

Netch - EBIT q Re-structuring program Re-structuring costs q4 2000: 10 Mkr q1 2001: 31 Mkr Focus on reaching profitability in 2001

Highlights q Liquid funds Liquid funds 198,7 Mkr Net change in liquid funds +2,7 Mkr

Change in liquid funds - q1 2001

Balance sheet - assets

Balance sheet - liabilities & equity

ThinServer market IDC predicts sales of ThinServers at more than $11 billion by 2004 Source: IDC

Market trends 2001 Growth potential in Office Connectivity OEM Camera Market and technology delays in wireless area Uncertainty regarding general economic down-turn

Outlook 2001 Priority on profitability and cash-flow Normalization of investment level Re-structuring of Netch

Axis 2001 Global presence 4th major investment phase completed Industry insider Profitable – and growing - base business Netch re-structured Proven track record

Axis financial goals Equity ratio normally not less than 50% Average annual sales growth of 30% in the five years following the IPO (ending 2005) Pre-tax margin of 10-15% achieved within three years from the IPO (2003)