M A K E Y O U R N E T W O R K S M A R T E R Continued market leadership in rapidly growing network video market January - December 2006 Ray Mauritsson, CEO Fredrik Sjöstrand, CFO

Today’s Agenda  This is Axis  Highlights during 2006  Financial 2006  The network video market  The future market  Questions & Answers

This is Axis  An IT- company driving the network video market  Global market leader in network video  World wide presence in 18 countries  Global partnerships through distributors, resellers and system integrators  Nordic List, Mid Cap, Information Technology

Axis’ two main product areas *Q Network Video Solutions  Worldwide #1 position  Axis’ largest product area, 90% of sales*  Installed base around 1,000,000 units Network Print Servers  Worldwide #2 position  6% of Axis’ sales*  Installed base of more than 3,000,000 units

Highlights January-December  Total growth +34%  Stable growth within Video +45%  Technology shift from analogue to digital solutions  Launch of state-of-the-art network video products  High activity in Retail and Transportation  Increased number of partners

Sales January - December, 2006 Total Sales  MSEK (895)  Growth 34%  Currency effects -10 MSEK Video Sales  MSEK (733)  Growth 45% MSEK Growth

EBIT January – December, 2006  Gross margin: 54.8% (54.0%)  Operating margin: 18.6% (14.3%)  Profit margin: 18.5% (14.2%) MSEKMargin

Sales Q4, 2006 *Q Print 6% Video 90% Other 1% Americas 36 % EMEA 53 % Asia 11 % Scan 3%

Global distribution and sales Axis Resellers System integrators End user Distributors

Total: 10,000 Channel Partner Program ADP partners: 400 in 43 countries

¬ Anixter ¬ Ingram Micro  Some of our partners Being a partnership expert DistributorsStorageNetworkADP Systems Integrators ¬ Motorola ¬ Convergint Technologies ¬ Diebold ¬ Group 4 Securicor ¬ Securitas ¬ Siemens ¬ Honeywell ¬ Lenel ¬ Milestone Consultants ¬ EMC

Customer segments Retail Bank Transportation Government Education Industrial

The market’s broadest video portfolio Fixed cameras AXIS 223M AXIS 221 AXIS 225FD AXIS 216FD AXIS 216FD-V AXIS 211A AXIS 211 AXIS 210 AXIS 210A AXIS 207W AXIS 207 AXIS 207MW AXIS 206 AXIS 209FD-R Network domes & PTZ cameras AXIS 232D+ AXIS 231D+ AXIS 214 PTZ AXIS 213 PTZ AXIS 212 PTZ Video servers AXIS 242S IV AXIS 241QA AXIS 241Q AXIS 241Q Blade AXIS 241SA AXIS 241S AXIS 241S Blade AXIS 240Q AXIS 240Q Blade Video management software ACS ACM ADP > 400 Partners

AXIS 209FD-R  Network camera for mobile video surveillance  Rugged network camera  10,000 cameras in Stockholm buses

AXIS 223M – for demanding environments  Ideal for demanding security areas  Day and night surveillance  Exceptional image detail

The AXIS STS system

The World CCTV Market in 2005 and 2010 Asia 29.4% $ 4,876.7 million EMEA 30.0% Asia 32.9% CAGR 13.3% EMEA 28.0% CAGR 9.3% Americas 39.1% CAGR 10.0% Source: IMS Research 2006 Americas 40.6% $ 8,145.5 million 42% being camera value

Worldwide marketshares: security cameras Top Ten Companies 1Panasonic (PSS) 2Pelco 3Bosch Security Systems 4Sony 5Honeywell 5Samsung Electronics 7GE Security 8Axis 9JVC 10Tyco Fire & Security Source IMS Research

EMEA marketshares: security cameras Source IMS Research Top Ten Companies 1Bosch Security Systems 2Panasonic (PSS 3Axis 4JVC 5Pelco 6Honeywell 7Sony 8Norbain (Vista 9GE Security 10Tyco Fire & Security

Growth 10% Growth 40% Growth of the global market CCTV Network Video

Market leadership Professional Network Video Future outlook, Axis’ goals Focused product range Aggressive product development Intelligent solutions Focused business model Channel partnerships Focused employees and focused company

Questions & Answers Axis video sales