Axis CommunicationsThe best in network video

Company Presentation

This is Axis

Founded in 1984

An IT company driving the network video market

Worldwide presence in 18 countries,504 employees

Product areas Network Video Solutions Network Print Servers

Net sales in 2006: SEK 1 202 (US$163M)

Global partnerships through distributors, resellers and system integrators

Listed on OMX Nordic Exchange, Stockholm Large Cap and Information, Technology exchanges

Vision and Mission

Axis vision Everything can communicate over

intelligent networks

Axis mission To be the driving force in bringing

customers the full benefit of intelligent network video solutions

Worldwide presence

Offices in 18 countries

Sales in more than 70 countries

Headquarters

Regional Headquarters

Regional Offices

4 steps in 20 years of network intelligence

IBM Protocol Converters

4th phase

3rd phase

2nd phase

1st phase

Print Servers

Storage

Network Video

Asia

Europe

USA

Global

1984 1992 1996 2000 2004 2006

Axis’ two main product areas

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

90% of sales Q2-07 Installed base of around 1,000,000 units

Network Print Servers Worldwide #2 position 7% of Axis’ sales Q2-07 Installed base of more

than 3,000,000 units

Highlights January-July, 2007

Total net sales 748 (540) MSEK

Total growth + 39%

Stable growth within video + 44%

Growth in all regions

High activity in the market Transportation Retail Government

Latest news, press releases

License agreement for print server software, June

AXIS Document Server bundled with new HP Scanjet, June

Product launches AXIS 216MFD AXIS 211M AXIS 215PTZ AXIS 247S

Sales January - July, 2007

Total sales 748 MSEK (540) Growth 39% Currency effects - 44 MSEK

Video sales 677 MSEK (469) Growth 44%

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Video growthTotal growth

EBIT and Gross margin

Gross margin 56.3% (54.6%)

Operating margin 23.1% (15.3%)

Profit margin 23.0% (15.2%)

MSEK Margin

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Gross margin

EBIT margin

Q2 2007

Sales in the product areas, Q2-2007

Q2 2007

Video + 48% Print + 22% Scan & Other + 30%

Growth in all product areas

Sales in the regions, Q2 - 2007

Q2 2007

Americas + 53% EMEA + 35% Asia + 57 %

Growth in the regions

Axis video sales 1996-2006

MSEK

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Global distribution and sales

Distributors

Resellers System integrators

End user

Channel Partner Program

More than 11,000 Channel Partners

ADP partners: more than 400 in 43 countries

Visibility on Axis web

Access to Partner Pages

PR opportunities

Participation in sales incentives

Sales and marketing tools

Prioritized technical support

Access to AXIS Academy

Channel Partner Program

Integrate Axis network cameras and video products in end-user solutions

Increased numbers of ADPs during the last year Honeywell Milestone Genetec Lenel

Application Development Partner program

The program is a way to further invest in our relation with our partners

During last two years 3400 partners completed the AXIS Academy

AXIS Academy

Axis Architect & Engineering Program

Influence consultants to specify network video products.

The A&E program offers A&E Specifications CAD drawings & AXIS Design Tool Seminars and trainings Started 2006, approximately 200

consultants globally today

Technology leadership

15-20% continuous investment in R&D

In-house developed ASIC technology ETRAX for networking ARTPEC for network video functions

Innovative network solutions 1991 First to introduce a multi-

protocol print server 1996 First to introduce a network

camera

Open standards

Shipping &invoicing

Shipping &invoicing

Logistic CenterLund/Asia

Logistic CenterLund/Asia

ManufacturingAsia/Europe

ManufacturingAsia/Europe

Scalable production

ComponentpurchasingComponentpurchasing

ForecastsForecasts

OrdersOrders

Progressive scan

Benefits of PoE

Megapixel

Simplified storage

Intelligence

Flexible mount

Wireless

Ethernet infrastructure often in place

The market will move away from analog

The market’s broadest video portfolio

Fixed cameras Domes & PTZ’s Video servers Management SW

AXIS 223MAXIS 221AXIS 225FDAXIS 216FD AXIS216MFDAXIS 216FD-VAXIS 211 and 211AAXIS 211MAXIS 210 and 210AAXIS 207 and 207W AXIS 207MWAXIS 206AXIS 209FD-R

AXIS 232D+AXIS 231D+AXIS 213 PTZAXIS 212 PTZAXIS 214 PTZAXIS 215PTZAXIS 233D

AXIS 240Q & BladeAXIS 241Q & BladeAXIS 241S & 241SAAXIS 241S BladeAXIS 243SAAXIS 243Q BladeAXIS 291 1U RackAXIS 242S IVAXIS 247S

ACSACM

ADP > 400 Partners

Megapixel cameras – See what you’ve been missing

AXIS 216MFD Fixed dome megapixel network camera Offering high levels of details Ideal for stores, schools,

airports, banks or government buildings

AXIS 211M Provides three times better resolution

than traditional analog camera Delivers crisp and clear images Perfect for identification of objects and people

AXIS 215PTZ

Provides full 360 degree panning

Places that require both overview and zoom functionality; shops, reception areas, schools, offices and other

Professional and discreet design

Customer segments

Banking & Finance

Education

Government

Industrial

Retail

Transportation

Customer segment – Transportation

Press releases, April, June & September, 2006 Close to 2000 network cameras total to

be installed in commuter & train stations in Stockholm, AXIS 225FD

10,000 network cameras on Stockholm buses, AXIS 209FD-R

Press release February, 2007 Approx 1000 network video products

installed in Moscow underground Potential for further installations

Customer segment – Retail

Target, USA

Hughes & Hughes, Ireland

IKEA, Holland

Citgo, USA

Hugo Boss, France

The Grape Group, Australia

SAKS 5th Avenue, Dubai

Global CCTV market in 2005 and 2010

Asia 29.4%

2005 - $ 4,876.7 million

EMEA 30.0% Asia 32.9%CAGR 13.3%

EMEA 28.0%CAGR 9.3%

Americas 39.1%CAGR 10.0%

Source: IMS Research 2006

Americas 40.6%

2010 - $ 8,145.5 million

42% being camera value

Worldwide marketshares: security cameras

Top ten companies

1 Panasonic (PSS)

2 Pelco

3 Bosch Security Systems

4 Sony

5 Honeywell

5 Samsung Electronics

7 GE Security

8 Axis

9 JVC

10 Tyco Fire & Security

Source: IMS Research

EMEA marketshares: security cameras

Top ten Companies

1 Bosch Security Systems

2 Panasonic (PSS

3 Axis

4 JVC

5 Pelco

6 Honeywell

7 Sony

8 Norbain (Vista

9 GE Security

10 Tyco Fire & Security

Source: IMS Research

Growth of the global market

Growth10%

CCTV

Growth40%

NetworkVideo

Future outlook, Axis goals

Focused product range Aggressive product development Intelligent solutions

Focused business model Channel partnerships

Focused company Market leadershipProfessional

Network Video