AXIS Communications - a world of intelligent networks Full year 2001 CEO Peter Ragnarsson CFO Jörgen Lindquist

Second half year 2001 Profitability and Positive Cash Flow

Financial performance Profitability and Positive Cash Flow… Increased operational efficiency Reduced capital tied up in operations Loss-making operations sold

Strategic position Year 2000 Network Infrastructure (LAN, Internet, etc) Network Value

Core offering World class solutions for easy-to-use, secure and efficient communication over networks

Network Camera & Video Server  Worldwide #1 Markets and market positions Network Printing  Worldwide #2 Network Scan & Store Network Wireless Access Axis ThinServer Technology

Investing for the connected future Intensive R&D ¬IP-based network connectivity ¬Direct access ¬Fast, reliable, economic and secure Seven new patents during 2001

End user Business model - spreading risk OEM Axis National distributor Value added distributor Reseller installer

An expanding customer base Ingram Micro Azlan Adimpo MicroP Allnet Fibrenetix NSM Storage EET Nordic Canon SONY Honeywell Securitas Minolta - QMS Panasonic Some recent distribution and industrial partnerships...

A complete distribution network Distributor partnerships ¬ Between 500 and 1,000 worldwide Reseller & Installer partnerships ¬ Between 50,000 and 100,000 worldwide

Some of our OEM partnerships Canon FujiXerox Minolta - QMS Sharp IBM SONY Apti/JBCC Intermec Palm Epson Panasonic

Sales Ongoing operations 12 months 2001 Sales 676 MSEK (642) Growth 5% * 2000 Proforma

Networked Office – Q Strategic segment Profitable base Strengthened positions

Office Connectivity OEM – Q Continuous demand for built-in Axis solutions Several major projects accounted for in Q Strong orderbook 2002

Camera – Q Digitalization Increased security awareness

Mobile Internet – Q Strategic area Technology and market uncertainties Will be incorporated in other areas

Technology – Q Increasing demand Several strategic customer contracts

Sales per division Ongoing operations MSEK Networked Office OEM12292 Camera Technology42 Other931 ThinServer products Mobile Internet51 Total676642

Investing for the future Intensive R&D agenda 151 MSEK year 2001 Corresponding to 22% of sales

EBIT by Quarter R&D overall ¬ 32 MSEK in Q New structure ¬ 20 MSEK restructuring costs in Q Profitability as planned proforma 2000 Q1Q2Q3Q4Q1Q2Q3Q

EBIT analysis Q Oct - Dec Oct - Dec MSEK ThinServer products 201 Mobile Internet-4-34 Corporate functions-8-8 Axis excl. Netch 8-41 Netch--31 Total8-71 proforma Q4 2000

Ongoing operations, MSEK Sales per Quarter

Gross margin MSEK

Accounts receivables

Inventory MSEK

Liquid funds MSEK

Market trends Generally weak market conditions expected to remain at least until mid 2002

Axis 2002 Innovating exciting market opportunities Strong technology platform Global markets Proven business model spreading risk Profitable and cash flow positive

Outlook 2002 Taking the next steps in our Network Value strategy Despite weak market conditions, a positive EBIT and operational cash flow is expected

This is Axis World class solutions for easy-to-use, secure and efficient communication over networks