AXIS Communications A world of intelligent networks Financial year (8 months) May - December 2000 Presented by Peter Ragnarsson

Axis Group Connectivity for peripheral units Printservers Scan servers CDservers Camera servers Technology Connectivity for personal communication devices Mobile Internet  Founded 1984  Listed on Stockholm stock exchange 2000  Founded 1984  Listed on Stockholm stock exchange 2000 Axis AB Netch 59% ( incl new issue 2001) nBand 11%

Axis history - four distinct phases IBM protocol conversion Europe 1st phase 2nd phase Print servers Asia 3rd phase ThinServers USA 4th phase IP connectivity Globally

Highlights - 8 month period  Revenues 494 Mkr (481)  ThinServer products  Document & Storage businesses re-structured  Camera 184% growth  Profitability  Netch: EBIT loss -57 Mkr  re-structuring finished in q1-2001

Highlights - 8 month period  Expansion as planned  Build-up of complete Mobile Internet Division  Total Mobile Internet investment costs 67 Mkr during May-Dec 2000  New technology platform, incl wireless technologies  Strategic partnerships  Total R&D 133 Mkr (92)  EBIT excl Netch -108 Mkr (-2)  EBIT incl Netch -165 Mkr (-8)

Revenue mix December 2000 (8 months)

Revenues for 8-month period

EBIT 8 month period  Profitability in ThinServer area  Investment peak in Mobile Internet  26 Mkr in Nov-Dec 2000  Loss in Netch 27 Mkr  whereof structural 10 Mkr 2 months

EBIT for 8-month period

Balance sheet - assets

Balance sheet - liabilities & equity

Change in liquid funds

ThinServer products  Document  Global top 3 on network print solutions  Camera  Leader in network camera and video servers  Storage  Global n°1 market leader for CD/DVD servers  Technology  network solution platforms

ThinServer market IDC predicts sales of ThinServers at more than $11 billion by 2004 Source: IDC

ThinServer products - revenues  Camera growth 184%  Document OEM growth 33%  Document & Storage re-structured for appropriate focus  Networked Office  OEM

ThinServer products - EBIT  Profitability in focus  Investment level reduced significantly 2 months

Mobile Internet Carrier class total system solutions for local mobile networks based on Bluetooth and WLAN (802.11)  Mobile Internet Server  Subscriber management  Security  Positioning  Network management  I/f to billing & customer care systems  Initial order from Canon on Axis 9010 Bluetooth™ Access Points

Mobile Internet  Mobile Internet Division founded  Complete solutions for local wireless networks  Intensive R&D (67 Mkr)  Test units delivered

Mobile Internet products - EBIT  Investment peak during Nov-Dec 2000  Investment level declining during months

Netch  Netch is a supplier of strategic internet services  Axis holds 59% of Netch after the new issue (57,6 Mkr) in February 2001  Peter Ragnarsson Chairman of the Board in Netch from Dec. 2000

Netch - EBIT  Re-structuring program  Re-structuring costs  q4 2000: 10 Mkr  q1 2001: 30 Mkr (est)  Focus on reaching profitability in months

Market trends 2001  Stable and profitable base in Document & Storage  Growth in OEM segment  Strong growth potential in Camera  Market potential for local wireless networks

Outlook 2001  Focus on profitability  Normalization of investment level  Re-structuring of Netch  Long-term financial goals remains unchanged

Axis 2001  Global presence  4th major investment phase completed  Industry insider  Profitable base business  Netch re-structured  Proven track record

Axis financial goals  Equity ratio normally not less than 50%  Average annual sales growth of 30% in the five years following the IPO  Pre-tax margin of 10-15% achieved within three years from the IPO