Axis Communications The best in network video Company Presentation

This is Axis  Founded in 1984  An IT company driving the network video market  Worldwide presence in 18 countries, 504 employees  Product areas Network Video Solutions Network Print Servers  Net sales in 2006: SEK (US$163M)  Global partnerships through distributors, resellers and system integrators  Listed on OMX Nordic Exchange, Stockholm Large Cap and Information, Technology exchanges

Vision and Mission  Axis vision Everything can communicate over intelligent networks  Axis mission To be the driving force in bringing customers the full benefit of intelligent network video solutions

Worldwide presence  Offices in 18 countries  Sales in more than 70 countries  Headquarters  Regional Headquarters  Regional Offices

4 steps in 20 years of network intelligence IBM Protocol Converters 4 th phase 3 rd phase 2 nd phase 1 st phase Print Servers Storage Network Video Asia Europe USA Global

Axis’ two main product areas  Network Video Solutions Worldwide #1 position Axis’ largest product area, 90% of sales Q2-07 Installed base of around 1,000,000 units  Network Print Servers Worldwide #2 position 7% of Axis’ sales Q2-07 Installed base of more than 3,000,000 units

Highlights January-July, 2007  Total net sales 748 (540) MSEK  Total growth + 39%  Stable growth within video + 44%  Growth in all regions  High activity in the market Transportation Retail Government

Latest news, press releases  License agreement for print server software, June  AXIS Document Server bundled with new HP Scanjet, June  Product launches AXIS 216MFD AXIS 211M AXIS 215PTZ AXIS 247S

Sales January - July, 2007  Total sales 748 MSEK (540) Growth 39% Currency effects - 44 MSEK  Video sales 677 MSEK (469) Growth 44% MSEKGrowth

EBIT and Gross margin  Gross margin 56.3% (54.6%)  Operating margin 23.1% (15.3%)  Profit margin 23.0% (15.2%) MSEKMargin Q2 2007

Sales in the product areas, Q Q Video + 48%Print + 22%Scan & Other + 30% Growth in all product areas

Sales in the regions, Q Q Americas + 53% EMEA + 35% Asia + 57 % Growth in the regions

Axis video sales MSEK

Global distribution and sales Distributors ResellersSystem integrators End user

Channel Partner Program  More than 11,000 Channel Partners  ADP partners: more than 400 in 43 countries

 Visibility on Axis web  Access to Partner Pages  PR opportunities  Participation in sales incentives  Sales and marketing tools  Prioritized technical support  Access to AXIS Academy Channel Partner Program

 Integrate Axis network cameras and video products in end-user solutions  Increased numbers of ADPs during the last year Honeywell Milestone Genetec Lenel Application Development Partner program

 The program is a way to further invest in our relation with our partners  During last two years 3400 partners completed the AXIS Academy AXIS Academy

Axis Architect & Engineering Program  Influence consultants to specify network video products.  The A&E program offers A&E Specifications CAD drawings & AXIS Design Tool Seminars and trainings Started 2006, approximately 200 consultants globally today

Technology leadership  15-20% continuous investment in R&D  In-house developed ASIC technology ETRAX for networking ARTPEC for network video functions  Innovative network solutions 1991 First to introduce a multi- protocol print server 1996 First to introduce a network camera  Open standards

Shipping & invoicing Logistic Center Lund/Asia Manufacturing Asia/Europe Scalable production Component purchasing Forecasts Orders

 Progressive scan  Benefits of PoE  Megapixel  Simplified storage  Intelligence  Flexible mount  Wireless  Ethernet infrastructure often in place The market will move away from analog

The market’s broadest video portfolio Fixed camerasDomes & PTZ’sVideo serversManagement SW AXIS 223M AXIS 221 AXIS 225FD AXIS 216FD AXIS216MFD AXIS 216FD-V AXIS 211 and 211A AXIS 211M AXIS 210 and 210A AXIS 207 and 207W AXIS 207MW AXIS 206 AXIS 209FD-R AXIS 232D+ AXIS 231D+ AXIS 213 PTZ AXIS 212 PTZ AXIS 214 PTZ AXIS 215PTZ AXIS 233D AXIS 240Q & Blade AXIS 241Q & Blade AXIS 241S & 241SA AXIS 241S Blade AXIS 243SA AXIS 243Q Blade AXIS 291 1U Rack AXIS 242S IV AXIS 247S ACS ACM ADP > 400 Partners

Megapixel cameras – See what you’ve been missing  AXIS 216MFD Fixed dome megapixel network camera Offering high levels of details Ideal for stores, schools, airports, banks or government buildings  AXIS 211M Provides three times better resolution than traditional analog camera Delivers crisp and clear images Perfect for identification of objects and people

AXIS 215PTZ  Provides full 360 degree panning  Places that require both overview and zoom functionality; shops, reception areas, schools, offices and other  Professional and discreet design

Customer segments  Banking & Finance  Education  Government  Industrial  Retail  Transportation

Customer segment – Transportation  Press releases, April, June & September, 2006 Close to 2000 network cameras total to be installed in commuter & train stations in Stockholm, AXIS 225FD 10,000 network cameras on Stockholm buses, AXIS 209FD-R  Press release February, 2007 Approx 1000 network video products installed in Moscow underground Potential for further installations

Customer segment – Retail  Target, USA  Hughes & Hughes, Ireland  IKEA, Holland  Citgo, USA  Hugo Boss, France  The Grape Group, Australia  SAKS 5 th Avenue, Dubai

Global CCTV market in 2005 and 2010 Asia 29.4% $ 4,876.7 million EMEA 30.0% Asia 32.9% CAGR 13.3% EMEA 28.0% CAGR 9.3% Americas 39.1% CAGR 10.0% Source: IMS Research 2006 Americas 40.6% $ 8,145.5 million 42% being camera value

Worldwide marketshares: security cameras Top ten companies 1Panasonic (PSS) 2Pelco 3Bosch Security Systems 4Sony 5Honeywell 5Samsung Electronics 7GE Security 8Axis 9JVC 10Tyco Fire & Security Source: IMS Research

EMEA marketshares: security cameras Top ten Companies 1Bosch Security Systems 2Panasonic (PSS 3Axis 4JVC 5Pelco 6Honeywell 7Sony 8Norbain (Vista 9GE Security 10Tyco Fire & Security Source: IMS Research

Growth of the global market Growth 10% CCTV Growth 40% Network Video

Future outlook, Axis goals  Focused product range Aggressive product development Intelligent solutions  Focused business model Channel partnerships  Focused company Market leadership Professional Network Video