Axis’ growth keeps pace with the market

January- December 2007 Ray Mauritsson, CEO

Fredrik Sjöstrand, CFO

Today's agenda

This is Axis

2007 – another year of growth

Financial

The focus and future in network video

Outlook 2008

This is Axis

Founded in 1984

An IT-company driving the network video market

Worldwide presence in 18 countries, 564 employees*

Product areas, Network Video Solutions Network Print Servers

Global partnerships through distributors, resellers and system integrators

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

* Year-end, 2007

Highlights January-December, 2007

Total net sales 1 671 (1 202) MSEK

Total growth + 39%

Stable growth within video + 44%

Growth in all regions

High activity in the market Adding orders to previously announced installations High interest in Transportation and Retail.

Axis global market leader in network video

Worldwide presence – close to the customers

Offices in 18 countries

Sales in more than 70 countries

Headquarters

Regional Headquarters

Regional Offices

Sales January - December, 2007

Total sales 1 671 MSEK (1 202)

Growth 39%

Currency effects - 88 MSEK

Video sales 1 530 MSEK (1 061)

Growth 44%

MSEK Growth

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Video growthTotal growth

Operating expenses

Q4, 2007

Q3, 2007

Q2, 2007

Q1, 2007

Q4, 2006

Selling and marketing costs -85 388 -79 902 - 76 059 - 66 112 -67 746

Administrative costs -16 911 - 14 525 -13 915 - 16 322 -14 932

Research and development costs -61 187 - 44 626 - 44 566 -43 015 -44 996

Total costs -163 436 - 139 053 -134 540 - 125 449 -127 674

EBIT and Gross margin

Gross margin 55,2% (55,2%)

Operating margin 21,8% (20,4%)

Profit margin 21,8% (20,3%)

MSEK Margin

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Gross margin

EBIT margin

Q4 2007

Sales in the product areas

Q4 2007

Sales in the regions

Q4, 2007

Americas EMEA Asia

Shareholder structure*

Name Number of Shares Percentage

Therese Karlsson privately and through company (LMK Industri)

13,830,408 19.9%

Christer Brandberg privately and through company (Inter indu S.P.R.L.)

9,606,957 13.8%

Martin Gren through company (Grenspecialisten AB) 7,157,471 10.3%

Swedbank Robur 5,100,445 7.4%

Unionen (fd SIF) 1,560,400 2.2%

Other 11,634 shareholders 32,116,519 46.4%

TOTAL 69,372,200

* December 31, 2007

Customer segments

Banking & Finance

Education

Government

Industrial

Retail

Transportation

Global distribution and sales

Distributors

Resellers System integrators

End user

The market’s broadest video portfolio

Fixed cameras & domes PTZ cameras & domes Video encoders/decoders

Management SW

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

AXIS 291 1U RackAXIS 3U Rack

AXIS Camera StationAXIS Camera MgmtADP > 400 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

Emerging market trends

Megapixel

Compression

Intelligence

Megapixel: better quality or better coverage

Analog camerasAnalog cameras

Megapixel network camera

One 2.0 megapixel camera covers a much larger scene thanfour 4CIF cameras, with maintained number of pixels per area

Compression in the future

The direction is clear

Proper terminology MPEG-4 Part 10 (Official MPEG name)

– ISO/IEC 14496-10 AVC

H.264 (Official ITU name)– ITU-T H.264

Applications Video surveillance

Entertainment video

Telecom

Streaming services

Video Analytics at Axis

Variety of applications Prohibited Area Protection, Virtual Fence Alarms,

Motion Tracking, People Counting, Left Item Detection, Loitering, Queue Management, Fire and Smoke Detection, and much more.

Axis invites the Video Analytics companies to our open platforms Creating Video Analytics capable Network

Cameras and Encoders

A Certification Program to ensure the product quality is maintained

IMS Research*

* The world market for CCTV & Video Surveillance Equipment, 2007 edition.

All video surveillance equipmentAxis is no. 8, compared with 12 in the preceding report

Security cameras category Axis is no.4, compared with 8 in the preceding report

Axis the global market leader32% market share for network cameras

Network VideoGrowth at an annual rate of 40 percent

Market shares for Video Surveillance Eq. in 2006

2006 Rank Supplier

1 Pelco

2 Panasonic System Solutions (PSS)

3 Bosch Security Systems

4 GE Security

5 Honeywell

6 Tyco Fire & Security

7 Samsung Electronics

8 Axis

9 Sony

10 Mitsubishi

Others

* The world market for CCTV & Video Surveillance Equipment, 2007 edition.

2006 Rank Supplier

1 Panasonic Communications Company (PCC)

2 Pelco

3 Bosch

4 Axis

5 Sony

6 Samsung Electronics

7 Honeywell

8 GE Security

9 Tyco Fire & Security

=10 CBC

=10 Sanyo

Others

Marketshares for all cameras in 2006

* The world market for CCTV & Video Surveillance Equipment, 2007 edition.

Market shares for network cameras in 2006

2006 Rank Supplier 2006 Share

1 Axis 32.0%

2 Sony

3 Panasonic Communications Company (PCC)

4 Mobotix

5 D-Link

6 Panasonic System Solutions (PSS)

7 Canon

8 Vivotek

9 DVTEL

10 Toshiba

Others

* The world market for CCTV & Video Surveillance Equipment, 2007 edition.

Future outlook

Focused product range Aggressive product development

Intelligent solutions

Focused business model Loyalty in channel partnerships

Focused company

Growth10%

CCTV

Growth40%

NetworkVideo