M A K E Y O U R N E T W O R K S M A R T E R Growth for Network Video continues January - June 2006...

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

Growth for

Network Video continuesJanuary - June 2006

Ray Mauritsson, CEO

Today`s Agenda

This is Axis Highlights first six month The Axis market AXIS 212 PTZ Questions & Answers

Axis’ two main product areas

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

88% of sales*

Installed base of more than 700,000 units

Network Print Servers Worldwide #2 position 9% of Axis’ sales*

Installed base of more than 3,000,000 units

*Q2 2006

Highlights January-June

Total growth +35 % Continued growth within Video Extensive network video installations in Transportation & Retail Expansion in South Africa Award – Market Penetration Leadership award Increased numbers of partners

Sales January - June, 2006

Total Sales 540 MSEK (401) Growth 35% Currency effects 26

Video Sales 469 MSEK (313) Growth 50%

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Video sales Video growth

MSEK Growth

Sales Q2, 2006

Print9 %

Print9 %

Video88 %Video88 %

Other1 %

Other1 %

Americas41 %

Americas41 %

EMEA48 %

EMEA48 %

Asia11 %Asia11 %

Scan 2 %

Scan 2 %

*Q2 2006

EBIT January – June, 2006

Stable margins Gross margin:

54.2 % (54.0 %) Operating margin:

15.1 % (13.8 %) Profit margin:

15.0 % (13.7 %)

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EBIT Gross margin EBIT margin

MSEK Margin

World wide organization

SwedenHQ

Singapore

Benelux

France

Nordics, EE& Russia

UK

China

Australia

Korea

Taiwan

San Diego

Canada

SouthAmerica

Boston

Spain &Portugal

Germany

Italy

Middle East& Africa

Japan

SouthAfrica

Total: 7300(end of June 2006)

Channel Partner Program

Solution Gold AuthorizedSolution Silver/Premium

ADP partners: 340

Customer segments

Retail

Bank Transportation

Government Education

Industrial

Customer case - Transportation, Stockholm

Photo:SL’s website

Approx 3,000 cameras will be installed in train and subway stationsAxis network cameras on 2 500 SL buses

Axis – the market leader

”.. the company that has demonstrated strategic excellence in product innovation, marketing, and sales strategies that have resulted in the largest gain in market share over the past two to three years. …”

© Copyright 2006 IMS Research www.imsresearch.com

Axis – World Leader for Network Cameras

Others

Sony

D-LinkAxis

Axis

D-Link

Others

D-Link

SonyCanon

Axis

Others

EMEA Americas

Asia World

Axis

SonyD-Link

Others

Panasonic

Panasonic

Toshiba

Mobotix

Mobotix

Panasonic

Mobotix

Panasonic

Axis

Verint

Bosch (VCS)

GE (Visiowave)

Telindus

Others

© Copyright 2006 IMS Research www.imsresearch.com

Axis – World Leader for Video Servers

AXIS 212 PTZ

Unique overview image One click close-up Pan tilt and zoom without any

moving parts Pan/tilt/zoom speed over one

image

Market leadershipProfessional Network Video

Future outlook, Axis’ goals

Focused product range• Aggressive product development• Intelligent solutions

Focused business model• Channel partnerships

Focused employees andfocused company

Questions & Answers