... M A K E Y O U R N E T W O R K S M A R T E R Video growth despite currency effects Year-end summary 2003 Ray Mauritsson, CEO Jörgen Lindquist, CFO

Summary 2003  Operating profit  Currency effects  Weakened gross margin  Continued growth for Video  Unchanged strategy

... M A K E Y O U R N E T W O R K S M A R T E R Financial performance Full year and Q4 2003

Financial performance  Net sales: SEK 624 M (670)  Currency effects impacted negatively: SEK 71 M  Operating profit: SEK 1 M (40)

Financial highlights 2003  Growth for Video  Decreased sales within Print  Currency effects  Profitability  Weakened gross margin  Cost-savings program

Financial performance Q4  Net sales: SEK 163 M (168) ¬ Currency effects impacted negatively: SEK 14 M  Operating profit: SEK 4 M (10)

Q  Continued growth for Video, 22%  New partnerships  Successful product launches  Acquisition of software developer

Video sales development

Sales by quarter Q4:  Continued growth in Video  Currency effects and weak IT market affected sales SEK (M) 2003 Video Other 2002

EBIT by quarter Q4:  Positive development  Gross margin: 48.9% (57.5)  Operating margin: 2.5% (5.7)  Profit margin: 3.6% (7.3)

Gross margin

Accounts receivables

Liquid funds SEK (M)

Sales Q4 Sales by Region 21% 27% 52% Asia Americas EMEA Sales by Product Group 64% Print 29% Scan & Store 4% Access and other 3% Video

EMEA market size & forecast  Axis market share in 2003 ¬ Network cameras: 59.8 % ¬ Video servers: 35.4 %  Estimated annual growth until 2008 ¬ For network cameras: 28.4 % ¬ For video servers: 30.3 % Factory revenue IMS Reserach, ”The EMEA market for CCTV and Video Surveillance Equipment”

Axis 2004  Unchanged growth potential for Video  Uncertain development for IT investment  An aggressive product road map  New opportunities  Well positioned for profitable growth