AXIS Communications- a world of intelligent networks

CEO Peter Ragnarsson

Nine months 2002

Increased profit and growth Net sales for comparable units: SEK 502 M (487) Operating profit for comparable units: SEK 30 M (loss:91) Cash flow from operating activities: SEK 8 M (neg:59)

This is Axis

A global, established and profitable company

A broad product portfolio meeting customer´s needs

An innovative market leader Proven technology and intensive

R & D

A growth company

Heading towards 30% growth goal Huge market potential in Video Market opportunities in Print and other

areas Leading positions in growth and mature

markets Innovations

Global sales and marketing channels

Offices in 14 countries 95% exported to over 70 countries Almost 1,000 distributors worldwide Between 50,000 and 100,000 resellers Strategic industrial partnerships

Network Camera & Video Server

Worldwide #1

Intelligent network solutions

Network PrintingWorldwide #2

Network Scan & Store

WirelessAccess

Axis ThinServerTechnology

Print server market

Worldwide #2 position HP interested in long life

market Increased network

connectivity Development of new

geographic markets Wireless solutions

The Camera and Video market

Worldwide #1 position Increased demand for

advanced security and surveillance solutions

Transition from analog CCTV systems to digital networked solutions

Potential for strong growth

Fast growing Video segments

Education Retail Office Transport and logistics Law enforcement Banking Penitentiaries Public areas Industrial applications

Markets in transition

Security market

IT market

Investing for the future

Intensive R&D agenda 15%-20% of sales reinvested in

R & D Product innovations to meet

real business needs 7th generation of ETRAX Fourth generation of network

cameras and video servers in 2003

On track for profitable growth

A clear focus on customers and selected verticals

Increased marketing activities

A growing number of strategic partnerships

Financial performanceJanuary-September 2002

Highlights: nine months 2002

Increased activities Stable sales trend Continuous growth for

Video; up 31 percent

Sales Q3 2002

Sales by Product Group

44%Video

Print 43%

Store 6%

Scan 2%Access 1% Other 4%

Sales by region

22%

Asia Americas

EMEA

29% 29%

42%

Sales Q3 2002Ongoing operations

050

100150200

250300

350400450

500550

Q3 Accum

2001 2002MSEK

Sales 168 MSEK (155) Growth and stable sales

despite weak market conditions

Video – Sales Q3 2002

44% of Axis´ total sales Increased demand for

network cameras and video servers

New agreements

Pro forma 2000

0

20

40

60

80MSEK

2000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2001 2002

New agreements Q3 2002

Network cameras to secure homes across France

Video surveillance of public transports in Italy

Security solution to New Zealand penitentiary

French bank increases security with network cameras

Print – Sales Q3 2002

43% of Axis´ total sales Stabilized despite

cautious IT-market

0

20

40

60

80

100MSEK

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q42000

Q1

Pro forma 2000

Q2 Q32001 2002

EBIT by Quarter

Continuous profitable development

Q3: operating margin 7%; profit margin 10%

Pro forma 2000

Q4-80

-70

-60

-50

-40

-30

-20

-10

0

10

20EBIT Structural

MSEK

Q1 Q2 Q3 Q4 Q1 Q2 Q32000

Q1 Q2 Q32001 2002

Market trends

Markets: cautious and difficult to predict Signs of increased activity Continued growth for Video

Growing interest in surveillance and security Increasingly large investments Increasingly professional applications

Outlook Q4, 2002

Stable sales trend despite cautious IT-market and generally weak business environment

Goal of profitable development remains unchanged