AXIS Communications - a world of intelligent networks Full year 2002 CEO Peter Ragnarsson CFO Jörgen Lindquist

Sharp increase in profitability

Financial performance 2002 Net sales for comparable units: SEK 670 M (676) Operating profit for comparable units: SEK 40 M (loss:83) Cash flow from operating activities: SEK 7 M (neg:26)

This is Axis A global, established and profitable company Sales in over 70 countries A broad product portfolio meeting customer´s needs An innovative market leader Proven technology and intensive R & D

Highlights 2002 Strong development within Video Proactive market efforts Several new partners focused on total solutions Positive sales trend in Asia and EMEA

A year of growth in the Video market Worldwide #1 position Axis’ largest product area A base of 200,000 units installed Several new strategic agreements

Trends driving the market Transition from analog to digital solutions Growing interest in surveillance and security Increasingly large investments Increasingly professional applications

IT market Security market Converging markets

Focus on customer segments Transportation Banking & Finance Government Retail Industrial Education

Investing for the future Intensive R&D agenda 118 MSEK in year 2002 Corresponding to 18% of sales Nine new patents Product innovations for future growth

A strong position Proven technology Global sales and distribution Market leadership Profitable development Growth opportunities

Financial performance Full year 2002

Financial performance 2002 Sharp increase in profitability despite weak market Net sales for comparable units: SEK 670 M (676) Operating profit for comparable units: SEK 40 M (loss:83) Cash flow from operating activities: SEK 7 M (neg:26)

Financial highlights Profitability Continuous growth for Video Continuous cost control Currency effects Positive cash flow

Sales 2002 Ongoing operations 12 months 2002 Sales 670 MSEK (676)

Sales Q Sales by Product Group 45% Video Print 41% Scan & Store 7% Access 1% Other 6% Sales by region 22% Asia Americas EMEA 26%27% 47%

Video – Sales % of Axis´ total sales Increased demand for network cameras and video servers New agreements Q1Q2Q3Q4Q1Q2Q Q4

Print – Sales % of Axis´ total sales Weak development due to cautious IT-market Q1Q2Q3Q4Q2Q3Q4 Pro forma Q1

EBIT by Quarter Continuous profitable development Q4: operating margin 5.7%; profit margin 7.3% Pro forma 2000 Q4Q1Q2Q3Q4Q1Q2Q Q1Q2Q Q4

Ongoing operations, MSEK Sales per Quarter

Gross margin MSEK

Accounts receivables

Inventory MSEK

Liquid funds MSEK

Axis’ ambition 2003 Profitability and growth Strengthened positions Priority on Video Clear customer focus New generation Video products

Outlook 2003 Signs of increased activities in several markets IT market and overall sales trend difficult to predict Continued substantial growth for Video