... M A K E S Y O U R N E T W O R K S M A R T E R Welcome to Axis´ Annual General Meeting 2003

... M A K E S Y O U R N E T W O R K S M A R T E R 7. President´s message Ray Mauritsson

Increased profitability despite weak market  Net sales for comparable units: SEK 670 M (676)  Operating profit for comparable units: SEK 40 M (-83)  Cash flow from operating activities amounted to: SEK 7 M (-26)

Year 2002 in brief  Profitability  Cost control  Improved gross margins  Decreased sales within Print  Continuous growth for Video

Sales development Video Document 97/9898/9999/

Intelligent Network Solutions Video Solutions  Network Cameras  Video Servers 45% 41% 14% Network Printing Other  Network Scan & Store  Technology sales  Wireless Access

Two offerings to the market Axis business model Platforms and Customized Products 25% Products and System Solutions 75%

Global Distribution and Sales End user OEM Axis National distributor Value added distributor Reseller Installer

Geographical spreading of risks Europe, Middle East, Africa North, South and Central America Asia Sales by region % 27% 26%

Customer segments Retail Bank Transportation Government Education Industrial

A growing Video market  Global market leader  Significant growth potential ¬ Growing interest in surveillance and security ¬ Shift from analog to digital solutions ¬ New technical possibilities

Multiplexor Alarm I/O Matrix Switch Time Laps Traditional analog camera surveillance …the total CCTV-market is estimated at 5 billion USD Source: Frost & Sullivan 2001

Alarm I/O TCP/IP Network Work station Internet/ Intranet Digital video surveillance …so far, only 2-3 % of the total market

Strategical agreements 2002  Network surveillance solutions to Washington, DC Police  Video surveillance of public transports in Italy  Security solution to New Zealand penitentiary  French bank increases security with network cameras

Security market IT market Converging markets

... M A K E S Y O U R N E T W O R K S M A R T E R First quarter January - March 2003

Financial Performance  Net sales: SEK 153 M (164) ¬ Currency effects impacted negatively: SEK 18 M  Operating profit: SEK 0.6 M (11)

Q  Continued growth for Video, 18%  Proactive market efforts  Weak IT investments  Generally restrained market

Sales mix Q Video Sales by Product Group 52% Print 40% Scan & Store 6% Access and other 2% Branded vs. OEM- sales 19%OEM Branded 81%

Investing for the future  Intensive R&D agenda ¬ Estimated 15% - 20% reinvested in R&D ¬ Video prioritized in 2003 ¬ Several new products  Proactive market efforts ¬ Focus on customer segments ¬ New partnerships

Outlook 2003  Cautious market  Signs of increased activity  Strengthened positions and growth potential for Video  Continued profitable development