AXIS Communications - a world of intelligent networks Annual General Meeting 2002

President´s message Annual General Meeting 2002 Peter Ragnarsson

Axis 2001 Profitability and positive cash flow achieved as planned in the second half of 2001

Year 2001 Weak market conditions Strong impact on IT and telecom industries ¬Negative growth ¬Big losses ¬Big changes in valuations

Axis 2001 in short... Foundation set for continued profitable growth Operating profit achieved in the second half of 2001 Q shows continued positive development Pro forma /9797/9898/99 99/ Q1 -02 Operating results

Factors contributing to profitability Sales increased by approx. 5% including currency effects Improved gross margins Reduced costs Restructuring measures

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

Network Camera & Video Server  Worldwide #1 Axis´ offerings Network Printing  Worldwide #2 Network Scan & Store Network Wireless Access Axis ThinServer Technology

A global player - 95% exported… 46% EMEA Americas Asia 31% 23% Sales by region

Axis´ market segments Branded Networked Office Networked Facility Growing use of networks in new environments OEM

End user Business model – spreading risk OEM Axis National distributor Value added distributor Reseller

A global distribution network Distributor partnerships ¬ Between 500 and 1,000 worldwide Reseller & Integrators partnerships ¬ Between 50,000 and 100,000 worldwide

A growing customer base Ingram Micro Azlan Adimpo MicroP Allnet Fibrenetix NSM Storage EET Nordic Canon SONY Honeywell Securitas Minolta - QMS Panasonic Some of our distributors and OEM partners

Investing for the future Intensive R&D agenda ¬Approx. 22 % of sales is reinvested in R&D ¬Support for new protocols ¬Increased functionality ¬New applications ¬Wireless communication Seven new patents during 2001

First Quarter January - March 2002

First Quarter 2002 Stable foundation for profitable growth

Financial performance Profitability and Positive Cash Flow… Operating profit improved by SEK 43 M (comparable units) Third consecutive quarter with positive EBIT Increased operational efficiency Reduced capital tied up in operations

Sales Q Sales by Product Group 41%Video Print43% Store 5% Scan 2% Access 1% Other 8% Branded vs. OEM sales 25%OEM Branded 75%

EBIT by Quarter R&D overall ¬ 31 MSEK in Q1 Operating margin 6.5% Profit margin 8.3% Pro forma 2000 Q1Q2Q3Q4Q1Q2Q3Q Q

Ongoing operations, MSEK Sales per Quarter

Liquid funds MSEK

Market trends Generally weak market conditions expected to remain at least until mid-2002 Slightly increased activity in markets

Outlook 2002 Continuous profitability and positive operational cash flow On track for a stronger position and profitable growth