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

Interim ReportJanuary - September 2003

CEO Ray Mauritsson

CFO Jörgen Lindquist

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

Continued growth for Video

Highlights Q3

Continued growth for Video Positive development despite

weak market New product broadens market

for remote monitoring

Intelligent Network Solutions

Video Solutions

Network Cameras Video Servers

57% 35%

8%

Network Printing

Other Network

Scan & Store Technology sales Wireless Access

Two offerings to the market

Axis business model

OEM & Technology sales

18%

Branded Products &

SystemSolutions

82%

Financial Performance - Nine Months

Net sales: SEK 460 M (502)¬ Currency effects impacted

negatively: SEK 57 M Operating loss: SEK -3 M (30)

Sales by quarter

Q3: Continued growth

in Video Weak IT market

affected other product areas

Mkr

2003

Video

Other

2002

0

20

40

60

80

100

120

140

160

180

Q1 Q2 Q3 Q4 Q1 Q2 Q3

EBIT by quarter

-10

-5

0

5

10

15

20

25

30

Q1 -02

Q2 -02

Q3 -02

Q4 -02

Q1 -03

Q2 -03

Q3 -03

MkrQ3: Positive development Gross margin:

51.1% (56.4) Operating margin:

0.5% (7.0) Profit margin:

0.3% (9.7)

Sales Q3

Sales by Region

23%

29%

48%

Asia

Americas

EMEA

Sales by Product Group

57%Print 35%

Scan & Store 5%

Access and other 3%

Video

Liquid Funds 2002-2003

MSEK

0

25

50

75

100

125

150

175

200

Q1-02 Q2-02 Q3-02 Q4-02 Q1 -03 Q2 -03 Q3 -03

Network Video Market

Worldwide #1 position Axis’ largest product area:

57% of sales Significant growth potential

¬ Growing interest in surveillance and security

¬ Shift from analog to digital solutions

¬ New technical possibilities

Focus on customer segments

Retail

Bank Transportation

Government Education

Industrial

Newport School Case

IssueNeed to reduce vandalism in schools

SolutionFully networked surveillance solution using AXIS 2400 Video Server

Main benefitsConsiderable cost savings, reduced damage and clear identification of offenders

Competitors

CCTV players: Panasonic, Sony, Sanyo, JVC and Bosch

New players: VCS, IndigoVision, Convision and SmartSight

Market Positioning for Video

Entry levelSegment

Enterprise Segment

Network Video Market

Axis current offering

AXIS 205

. . .

. . .

. .

AXIS 205 Network Camera

World’s smallest network camera High image quality Attractive price Surveillance of property and people Broadcast events over the Internet

Outlook 2003

Weak IT investments Unchanged growth potential for

Video Aggressive product agenda Goal of positive operating result for

the full year 2003