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

Video growth despite negative

currency effects

Year-end summary 2003Ray Mauritsson, CEO

Agenda

2003 summary and Axis today Network video: growth in security Technology: trends and outlook

Axis’ two main product areas

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

57% of sales An installed base of more

than 300,000 units

Network Print Servers Worldwide #2 position 35% of Axis´ sales An installed base of more

than 2,000,000 units

Financial performance 2003

Net sales: SEK 624 M (670) Currency effects had a negative

impact of SEK 71 M Operating profit: SEK 1 M (40)

Financial highlights 2003

Growth for Video Decreased sales within Print Currency effects Weakened gross margin Cost-savings program 14 new patents

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SEK M

Video sales development 1998-2003

Gross margin 2002-2003

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Q1 2004

Continued growth within Video, + 23%

Weakened sales for Print New generation video products

launched

Sales Q1, 2004

64%Print 28%

Scan & Store 3%

Access and other 5%

Video

23%

26%

51%

Asia

Americas

EMEA

Market size & forecast

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IMS Research, ”The EMEA market for CCTV and Video Surveillance Equipment”

Video serversNetwork cameras

Factory revenue € millionAxis market share in EMEA today: Network cameras:

59.8% Video servers:

35.4%

Year 2003 – Success cases in all verticals

Car park security in Japan

Childcare Cam at Singaporian daycare center

Surveillance in Newport School,UK

Increased safety at Guernesey College, UK

Surveillance Solution at Dutch School

Security cams at 70 bank offices in FranceSafety for Danish bank

Security in Italian Retail stores

Swedish monitoring concept in shops

Car park security in Germany

Cameras help UK police cut crime

Security solution to New Zealand penitentiary

Security at Sydney Airport

Remote Monitoring Solution to New York State Unified Court System

IP based security in Texas school district, US

Missouri school district implements Network Video

Network Video improves patient care, Visicu,US

Axis´network products for U.S federal prison

Advanced network surveillance solutions to Washington, DC Police

Car park security in Japan

Childcare Cam at Singaporian daycare center

Surveillance in Newport School,UK

Increased safety at Guernesey College, UK

Surveillance Solution at Dutch School

Security cams at 70 bank offices in FranceSafety for Danish bank

Security in Italian Retail stores

Swedish monitoring concept in shops

Car park security in Germany

Cameras help UK police cut crime

Security solution to New Zealand penitentiary

Security at Sydney Airport

Remote Monitoring Solution to New York State Unified Court System

IP based security in Texas school district, US

Missouri school district implements Network Video

Network Video improves patient care, Visicu,US

Axis´network products for U.S federal prison

Advanced network surveillance solutions to Washington, DC Police

Customer segments

Retail

Bank Transportation

Government Education

Industrial

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

Axis compared with the competition

Dedicated to IP solutions Global coverage Widest range Own technology Over 150 ADP partners

Axis’ competitive advantage

Own ASIC and compression chip¬ Performance, image quality and lower cost¬ ETRAX and ARTPEC

Experience¬ 9 years of imaging experience¬ 20 years of networking experience

Only open standards

Trends - Technology

Smart cameras and integrated systems

New technology is opening up possibilities in image quality and functionalities

Examples:¬ Megapixel ¬ Pictures scalable to any format¬ License plate recognition¬ Digital PTZ

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New generation video products

Aggressive road map

New compression techniques Higher resolution Full frame rate Built-in wireless solution Power over Ethernet Dome cameras

The future of network video

Accelerating technology shift ”Unlimited” possibilities in

addition to security solutions New applications

Visicu – eIC

Strategic direction

Maximize the video opportunity

Protect the printing business

Nurture new ideas for future growth

Outlook 2004

Continued growth potential for Video

Accelerating technology shift An aggressive product road map Restrained development for

Print Well positioned for profitable

growth