M A K E Y O U R N E T W O R K S M A R T E R Continued growth within Video January-March 2005 Ray Mauritsson, CEO

Q1, 2005 Highlights  Total growth, +15%  Continued growth within Video, +35%  Continued development of product portfolio  Partner with HID  New sales office in Canada

Axis’ two main product areas Network Video Solutions  Worldwide #1 position  Axis’ largest product area, 75% of sales  Installed base of more than 400,000 units Network Print Servers  Worldwide #2 position  22% of Axis’ sales  Installed base of more than 2,000,000 units

Financial performance: Q1, 2005  Net sales: SEK 175 M (152)  Operating profit: SEK 14 M (-5)  Profit before tax: SEK 14 M (-5) Note: 2004 figures IFRS adjusted

Financial performance: Q1, 2005  Video grew 35% compared with Q  Weak development in Print Other Video

EBIT by quarter Q1-05:  Gross margin: 52.4% (49.3%)  Operating margin: 8.0% (-3.5%)  Profit margin: 7.9 % (-3.6%) Note: 2004 figures IFRS adjusted

Sales Q1, 2005 Print 22% Video 75% Other 3% Americas 30% EMEA 46% Asia 24%

New products, Q1 AXIS 211AAXIS 221 Day & Night AXIS 240QAXIS 241QAAXIS 241SA AXIS Camera Station

AXIS Image Enhancer - Example In the fog outside Axis, Lund

Integrated systems  Develop industry’s first open interface and protocol standard (API)  Integrate video and passage control systems  Meet demands of security market

Customer segments Retail Bank Transportation Government Education Industrial

Customer case – Newport School, England “Having the right infrastructure in place is vital for development of innovative solutions. The combined solution, should save the council more than 75,000 pounds per year.” ~Phil Cox, Principal Consultant, Newport Council

Technology shift is accelerating

Video sales,

Outlook 2005  Continue the development of partnerships  An aggressive product road map Long term goals (3-5 years)  20% average annual growth  10% profitability  Equity ratio > 50%