M A K E Y O U R N E T W O R K S M A R T E R

Improved profitability and continued video growth

January – December 2004 Ray Mauritsson, CEO

Fredrik Sjöstrand, CFO

Highlights

Broadened product portfolio New partnerships Market leadership Improved profitability Continued growth for Video, +33%

Axis’ two main product areas

Network Video Solutions Worldwide #1 position Axis’ largest product area,

73% of sales Installed base of more

than 400,000 units

Network Print Servers Worldwide #2 position 21% of Axis’ sales Installed base of more

than 2,000,000 units

Financial performance: Jan-Dec 2004

Net sales: SEK 691 M (624) Operating profit: SEK 48 M (1) Profit before tax: SEK 57 M (8)

Financial performance: Q4, 2004

Net sales: SEK 199 M (163)

Operating profit: SEK 29 M (4)

All time high

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Other

Video

2003 2004

EBIT by quarter

-10

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MkrQ4: Positive Development Gross margin:

53.0% (48.9%) Operating margin:

14.4% (2.5%) Profit margin:

15.6% (3.6%)

Gross margin by quarter

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%

Sales: Q4, 2004

73%Print21%

Other 6%

Video

18%

29%53%

Asia

AmericasEMEA

Sales by Product Group Sales by Region

Business highlights 2004

Global partnership with Securitas IP-Surveillance to Public Transport

Authority in Australia Network video products to Mexico´s

largest electricity provider A new customized print server

Business highlights Q4

Award of Excellence from Ingram Micro Security at Turning Stone Casino, New

York. Network video improves intensive health

care

Benefits with Network video

IT infrastructure Integration Scalability

Stafford Hospital – IT infrastructure

”IP-Surveillance installation provides more than 56% savings over traditional analogue CCTV at

Stafford General Hospital.”

Parking facility – Integration

"The advantages with Axis Cameras are definitely the high quality of the pictures and the powerful software built

into the cameras. Our company Beconnected use Axis cameras in combination with our ASAN

Surveillance System in demanding environments such as parking facilities.”

New York Courts – Scalability

”The Unified New York Court System built their own surveillance solution based on Axis open API. More than 30 of the most sensitive and heavily trafficked court buildings in New York

State are currently monitored and expansion is planned to the roughly 300 court buildings.”

Long term goals & Outlook 2005

Long term goals (3-5 years) 20% average annual growth 10% profitability Equity ratio > 50%

Outlook 2005 Continue the development of

partnerships An aggressive product road

map

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MSEK Video sales 1998-2004