Axis Communications – A world of intelligent networks

Vision In the future everything can communicate over intelligent networks… Axis will be a driving force.

Facts  Founded 1984  Leader in IP-based network connectivity  Worldwide presence  50% of sales is cameras and 50% print- servers  Average annual sales growth >30%

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

Strengths  Broad product portfolio  Strategic partnerships  Global distribution channels  Proven technology and intensive R&D. Approx. 20% of sales is reinvested in R&D  Seven new patents during 2001

Axis competitive advantage  Experience  Own ASICs  Performance, image quality and lower cost  7 years of network camera experience  Axis fully understands the network  Open standards only  API available

Markets in transition Security MarketIT Market

The Camera and Video market  Increased demands for security and surveillance solutions  Fast growing market with increased demands for more advanced solutions  Digital networked solutions replaces analogue CCTV- systems  Increased bandwidth enables wider use of audio and video applications

Status Technology Adoption Curve Time Technology features Technology benefits Solutions Tactical promotion Mass adoption LaggardsEarly Adopters Leading Edge Network Video

 Key Market Drivers&Trends 1. Digital recording (4,7) 2. Convergence of Computers&CCTV (4,6) 3. Video Distribution via the Internet (4,4) 4. High bandwidth Intersite Service (4,2) 5. Networked Video Systems (4,1) 6. Use of Intranets (4,0) 7. Merging of Security&IT (3,8) Network Addressable Cameras (3,8) J.P. Freeman “CCTV&Video Surveillance”

References  Industrial  Legrand, France (400 units)  Caspian pipeline, Russia (100 units)  Tokyo Electrical Power, Japan (100 units)  Government  Federal Bureau of Prison (200 units)  State of Minnesota (150 units)  City Hull, England (200 units)

References  Transportation  Sydney airport, Australia (200units)  Minnesota DoT, USA (100 units)  Miami freeway, USA (120 units)  Circumvesuviana, Italy (300 units)  Education  Canton school direct, USA (40 Units)  Newport Schools, England (100 units)  St James, France (100 units)

References  Banking & Finance  Retail  Stadium, Sweden (100 units)  Italian retail chain, Italy (400 units)  Santa row, USA (100 units)

Key Industry Verticals (segments)  Industrial  Governmental  Finance  Transportation  Education  Retail Your system solutions are tailored to meet the business and technical requirements of key industry vertical

Product and technology trends  Applications are the key to success!  ADP program  Application is king  Digital Recording  Streaming video and audio  Use less bandwidth

Three main Customer categories  Ones and twosies  Web attraction, door cam, one camera in server room  Large installs custom SW applications  Mainly remote monitoring  Large installs with ADP SW  Security and Surveillance  Integration to building management system

Product and technology trends  Wireless products  Intelligent camera system  Power over Ethernet  Localization and customization  Integration with other system

4. Key Market Figures Market size

Network Camera & Video Server Worldwide #1

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

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