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

Continued growth within Video January-March 2005

Ray Mauritsson, CEO

Q1, 2005 Highlights

Total growth, +15% Continued growth within Video,

+35% Continued development of product

portfolio Partner with HID New sales office in Canada

Axis’ two main product areas

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

75% of sales Installed base of more

than 400,000 units

Network Print Servers Worldwide #2 position 22% of Axis’ sales Installed base of more

than 2,000,000 units

Financial performance: Q1, 2005

Net sales: SEK 175 M (152) Operating profit: SEK 14 M (-5) Profit before tax: SEK 14 M (-5)

Note: 2004 figures IFRS adjusted

Financial performance: Q1, 2005

Video grew 35% compared with Q1-2004

Weak development in Print

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Q1-2004 Q2-2004 Q3-2004 Q4-2004 Q1-2005

Other

Video

EBIT by quarter

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Q1 -04 Q2 -04 Q3 -04 Q4 -04 Q1-05

MkrQ1-05: Gross margin:

52.4% (49.3%) Operating margin:

8.0% (-3.5%) Profit margin:

7.9 % (-3.6%)

Note: 2004 figures IFRS adjusted

Sales Q1, 2005

Print22%Print22%

Video75%

Video75%

Other3%

Other3% Americas

30%Americas

30%

EMEA46%

EMEA46%

Asia24%Asia24%

New products, Q1

AXIS 211A AXIS 221 Day & Night

AXIS 240QAXIS 241QAAXIS 241SA

AXIS Camera Station

AXIS Image Enhancer - Example

In the fog outside Axis, Lund

Integrated systems

Develop industry’s first open interface and protocol standard (API)

Integrate video and passage control systems

Meet demands of security market

Customer segments

Retail

Bank Transportation

Government Education

Industrial

Customer case – Newport School, England

“Having the right infrastructure in place is vital for development of

innovative solutions. The combined solution,

should save the council more than75,000 pounds per year.”

~Phil Cox, Principal Consultant, Newport Council

Technology shift is accelerating

Video sales, 1998-2004

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MSEK

Outlook 2005

Outlook 2005 Continue the development of

partnerships An aggressive product road map

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