AXIS Communications- a world of intelligent networks

Annual General Meeting 2002

AXIS Communications- a world of intelligent networks

Annual General Meeting 2002

President´s messageAnnual General Meeting 2002

President´s messageAnnual General Meeting 2002

Peter Ragnarsson

Axis 2001

Profitability and positive cash flowachieved as planned in the secondhalf of 2001

Year 2001

Weak market conditions Strong impact on IT and telecom

industries¬ Negative growth¬ Big losses¬ Big changes in valuations

Axis 2001 in short...

Foundation set for continued profitable growth

Operating profit achieved in the second half of 2001

Q1 2002 shows continued positive development

Pro forma 2000

-250

-200

-150

-100

-50

0

50

Mkr

96/97 97/98 98/99

99/00 2000 2001

Q1 -02

Operating results

Factors contributing to profitability

Sales increased by approx. 5% including currency effects

Improved gross margins Reduced costs Restructuring measures

Core offerings

World class solutions for easy-to-use, secure and efficient communication over networks

Network Camera & Video Server

Worldwide #1

Axis´ offerings

Network PrintingWorldwide #2

Network Scan & Store

Network WirelessAccess

Axis ThinServerTechnology

A global player - 95% exported…

46%EMEA

Americas

Asia

31%

23%

Sales by region

Axis´ market segments

Branded

NetworkedOffice

NetworkedFacility

Growing use of networks

in new environments

OEM

End user

Business model – spreading risk

OEM

Axis

Nationaldistributor

Value addeddistributor

Reseller

A global distribution network

Distributor partnerships¬Between 500 and 1,000 worldwide

Reseller & Integrators partnerships¬Between 50,000 and 100,000 worldwide

A growing customer base

Ingram Micro Azlan Adimpo MicroP Allnet Fibrenetix NSM Storage

EET Nordic Canon SONY Honeywell Securitas Minolta - QMS Panasonic

Some of our distributors and OEM partners

Investing for the future

Intensive R&D agenda¬ Approx. 22 % of sales is

reinvested in R&D¬ Support for new protocols¬ Increased functionality¬ New applications¬ Wireless communication

Seven new patents during 2001

First Quarter January - March 2002

First Quarter January - March 2002

First Quarter 2002

Stable foundation for profitable growth

Financial performance

Profitability and Positive Cash Flow… Operating profit improved by

SEK 43 M (comparable units) Third consecutive quarter with positive EBIT Increased operational efficiency Reduced capital tied up in operations

Sales Q1 2002

Sales by Product Group

41% Video

Print 43%

Store 5%Scan 2%Access 1% Other 8%

Branded vs. OEM sales

25% OEMBranded 75%

EBIT by Quarter

R&D overall¬ 31 MSEK in Q1

Operating margin 6.5% Profit margin 8.3%

Pro forma 2000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2000

Q1

2001 -02

-80

-70

-60

-50

-40

-30

-20

-10

0

10EBIT Structural

Mkr

Ongoing operations, MSEK

Sales per Quarter

0

50

100

150

200

250

Q1 Q2 Q3 Q4

2000 2001 2002

Liquid funds

MSEK

0

25

50

75

100

125

150

175

200

Q3-00 Q4-00 Q1-01 Q2-01 Q3-01 Q4-01 Q1-02

Market trends

Generally weak market conditions expected to remain at least until mid-2002

Slightly increased activity in markets

Outlook 2002

Continuous profitability and positive operational cash flow

On track for a stronger position and profitable growth