M A K E Y O U R N E T W O R K S M A R T E R Video growth in pace with the market January-September 2005 Ray Mauritsson, CEO

Axis’ two main product areas Network Video Solutions  Worldwide #1 position  Axis’ largest product area, 85% of sales *  Installed base of more than 500,000 units Network Print Servers  Worldwide #2 position  13% of Axis’ sales *  Installed base of more than 3,000,000 units *Q3 2005

Highlights January-September  Total growth +29 %  Continued growth within Video +55 %  Accelerating video market

Financial performance: January-September  Net sales: SEK 636 MSEK (492)  Operating profit: SEK 96 MSEK (22)  Profit before tax: SEK 95 MSEK (21) Note: 2004 figures IFRS adjusted

Q3, 2005 Highlights  Total growth +36 %  Continued growth within Video  Strong growth in Region Americas  High activity in the network video market

Financial performance: Q3, 2005 Q3-2005:  Net sales 235 MSEK (172)  Video growth 69 % Other Video

EBIT by quarter Q3-2005:  Gross margin: 54,9 % (53,5 %)  Operating margin: 17,3 % (10,8 %)  Profit margin: 17,2 % (10,6 %) Note: 2004 figures IFRS adjusted

Sales Q3, 2005 Print 13 % Video 85 % Other 1 % Americas 43 % EMEA 41 % Asia 16 % Scan 1 % *Q3 2005

Growth 10% Growth 40% Size and growth of the global market CCTV USD $5 billion Network Video USD $221 million

Market estimates Total Network Video Market MUSD (manufacturer prices)

Global distribution and sales Axis Resellers System integrators End user Distributors ADP

Application Development Partner program  Integrate Axis network cameras and video products in end-user solutions  Increased numbers of ADPs, more than 260  Honeywell, Tyco/American Dynamics, Lenel

Axis is an IT company driving network video in: Market leadership professional network video Axis is driving network video Security applications Remote monitoring New applications (e.g. customer behavior) Axis is an IT company driving the network video market

Retail – a growing customer segment  Customer segment Retail is 25% of the total CCTV market.  Growth rate in retail is expected to increase due to new applications for video content analysis  People counting, protection of buildings and employees, protect burglary, cuts “drive offs” etc

Retail applications With intelligent Video:  People counting  Reports on traffic volume, hourly trends, etc.  Staff management Total amount: 124 Stopped 96 Reports are created based on number of stops at a region of interest

Axis Video Management System & ADP Solutions Axis product portfolio Fixed Cameras Network Domes & PTZ Cameras Video Servers

Outlook  Proceed the development of partnerships  Product launches  Continued strong video growth, keeping market shares  Strengthen the world wide organisation