M A K E Y O U R N E T W O R K S M A R T E R Video growth and profitable development First half of 2004 Ray Mauritsson, CEO
Axis’ two main product areas Network Video Products Worldwide #1 position Axis’ largest product area, 69% of sales An installed base of more than 300,000 units Network Print Servers Worldwide #2 position 27% of Axis’ sales An installed base of more than 2,000,000 units
Highlights: first half, 2004 Continued growth for Video Improved gross margins Profitability 10 new products launched
Financial performance: first half, 2004 Net sales: SEK 320 M (305) Currency effects had a negative impact of SEK 19 M Operating profit: SEK 2 M (loss: 4)
Highlights: Q2, 2004 Strong growth within Video, + 36% Restrained sales for Print New strategic agreements
Sales by quarter Q2: Continued strong growth in Video MSEK 2004 Video Other 2003
EBIT by quarter Q2: Gross margin: 51.7% (52.8) Operating margin: 4.7% (-2.8)
Gross margin by quarter
Sales: Q2, % Print 27% Other 4% Video 19% 33% 48% Asia Americas EMEA Sales by Product GroupSales by Region
Benefits of network video Remote access to video from any location Low start-up and operating costs Flexible and scalable solutions based on open standards ¬ Integration possibilities A technology shift driving growth
New generation video products Network Cameras AXIS 210 AXIS 211 AXIS 206M Megapixel Network Camera AXIS 206W Wireless Network Camera AXIS 231D Network Dome Camera Network Video Decoder AXIS 292 Video Servers AXIS 241S AXIS 241Q Software solutions AXIS Camera Station
New generation print servers Primarily targeted at small businesses and home users A key addition to Axis’ already broad market offering Axis OfficeBasic USB Wireless
Strategic agreements Axis chosen as strategic supplier of network video solutions for Honeywell Axis begins global IP-Surveillance partnership with Securitas
Outlook 2004 Continued strong growth potential for Video Further product launches ahead Restrained development for Print Goal of profitable growth remains unchanged