Strong growth driven by extensive network video projects

January- September 2007 Ray Mauritsson, CEO

Fredrik Sjöstrand, CFO

This is Axis

Q3 2007

Axis product portfolio

The network video market

Total cost of owership (TCO)

Today's agenda

This is Axis

Founded in 1984

An IT-company driving the network video market

Worldwide presence in 18 countries, 523 employees*

Product areas, Network Video Solutions Network Print Servers

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

Global partnerships through distributors, resellers and system integrators

Listed on OMX Nordic Exchange, StockholmLarge Cap and Information, Technology exchanges

* Q3, 2007

Global distribution and sales

Distributors

Resellers System integrators

End user

The market’s broadest video portfolio

Fixed cameras Domes & PTZ’s Video servers Management SW

AXIS 243QAXIS 243SAAXIS 241QAAXIS 241QAXIS 241SAXIS 247SAXIS 240Q

AXIS 291 1U RackAXIS 3U Rack

AXIS Camera StationAXIS Camera MgmtADP > 500 PartnersAXIS 262+ NVR

AXIS 223MAXIS 221AXIS 225FDAXIS 216MFD/216MFD-VAXIS 211MAXIS 216FD/216FD-VAXIS 211WAXIS 211/211AAXIS 210/210AAXIS 209FD-RAXIS 209FD/209MFDAXIS 207MWAXIS 207/207W AXIS 206

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

Accessories

Total net sales 1 193 (841) MSEK

Total growth + 42%

Stable growth within video + 48%

High activity in the market Adding orders to previously announced installations

Highlights January-September, 2007

Sales January - September, 2007

Total sales 1 193 MSEK (841)

Growth 42%

Currency effects - 61 MSEK

Video sales 1 090 MSEK (738)

Growth 48%

MSEK Growth

050

100150200250300350400450

Q1-200

5

Q2-200

5

Q3-200

5

Q4-200

5

Q1-200

6

Q2-200

6

Q3-200

6

Q4-200

6

Q1-200

7

Q2-200

7

Q3-200

70%10%20%30%40%50%60%70%80%90%

Video salesVideo growthTotal growth

Operating expenses

Q3, 2007

Q2, 2007

Q1, 2007

Q3, 2006

Selling and marketing costs -79 902 - 76 059 - 66 112 -50 266

Administrative costs - 14 525 -13 915 - 16 322 -11 732

Research and development costs - 44 626 - 44 566 -43 015 -38 597

Total costs - 139 053 -134 540 - 125 449 -100 595

EBIT and Gross margin

Gross margin 54.5% (55.3%)

Operating margin 23.1% (22.7%)

Profit margin 23.0% (22.6%)

MSEK Margin

0102030405060708090

100

Q1-

2005

Q2-

2005

Q3-

2005

Q4-

2005

Q1-

2006

Q2-

2006

Q3-

2006

Q4-

2006

Q1-

2007

Q2-

2007

Q3-

2007

0%10%20%30%40%50%60%70%80%90%100%EBIT

Gross marginEBIT margin

Q3 2007

Sales in the product areas

Q3 2007

Video + 54% Print & Scan - 11% Other +37 %

Growth in product areas

Sales in the regions

Q3, 2007

Americas EMEA Asia

Latest news

Installations in Casino in US, August

AXIS open office in India, August

Axis cameras featured in Telia HemKoll service, September

Product launches AXIS 209MFD

AXIS 209FD

AXIS 211 W

Active Tampering Alarm

Intelligent Video

Active Camera Tampering

Detects re-direction

Detects blocking

Detects covering and spray-painting

Detects out of focus

More information www.axis.com

The first million

One million network cameras delivered

Network camera penetration by country

Source: World Market for Video Surveillance Equipment 2006 Ed, IMS Research

Highest market penetration

Customer segments

Banking & Finance

Education

Government

Industrial

Retail

Transportation

Total cost of ownership (TCO)

Research conducted by an independent research firm Develop a Total Cost of Ownership (TCO)

comparison of video surveillance systems- Analog vs. Digital

Installation in a single school building with30 indoor and 10 outdoor cameras

3 steps– Develop baseline operational scenario– Collect cost data– Compile finding

Conclusion Total cost of ownership is lower in an

IP-based installation The network system is scalable and more

flexible More information at www.axis.com

54%

6%

21%

19%

34%

16%

25%

25%

Growth of the global market

Growth10%

CCTV

Growth40%

NetworkVideo

Future outlook, Axis goals

Focused product range Aggressive product development

Intelligent solutions

Focused business model Loyal partnerships

Focused companyMarket leadership

Professional Network Video