www.axis.com

Interim reportJanuary – September 2010

Ray Mauritsson, CEO & President

Fredrik Sjöstrand, CFO

www.axis.com

This is Axis

*September, 30 2010

> Founded in 1984

> IT company driving the network video market

> Focused on Network Video Solutions

> Global partnerships through distributors, resellers

and system integrators

> Worldwide presence in more than 30 countries,

888 employees*

> Listed on NASDAQ OMX, Nordic

under the ticker AXIS

www.axis.com

Highlights, July – September 2010

> Strong market interest for Axis’ network

video products continued

> The inflow of new projects has continued at

a stable level

> High recruitment rate

www.axis.com

0%

10%

20%

30%

40%

50%

60%

70%

80%

0

100

200

300

400

500

600

700

800Video salesVideo growthTotal growth

Sales

MSEK Growth> January - September

– 2 058 MSEK (1 642)

– Growth 25%

– Currency effects, -161 MSEK

> July – September

– 737 MSEK (568)

– Growth 30%

– Currency effects, -26 MSEK

www.axis.com

Operating expenses Q1 2007 – Q3 2010

0

20

40

60

80

100

120

140

Sales & Marketing Administration Research & Development

MSEK

www.axis.com

Currency effects on total sales by region

-60-50-40-30-20-10

010

EMEA Americas Asia

Q1 10 Q2 10 Q3 10

MSEK

www.axis.com

MSEK Margin

0%

10%

20%

30%

40%

50%

60%

70%

0

20

40

60

80

100

120

140

EBIT

Gross margin

EBIT margin

Margins*

> Gross margin*

– 50.4 % (52.3%)

> Operating margin

– 16.4% (16.7%)

> Profit margin

– 16.3% (16.6%)

*Q3 2010

www.axis.com

Sales in the regions*

AsiaEMEAAmericas

49% 41% 10%

*Q3 2010

www.axis.com

Global expansion

South Pacific

(Australia)

HQ EMEA +

Nordics/Baltics + Customer

services

Russia

UK

DACH/CEE

Netherlands

FR/BeLux

Spain Italy Americas

South America

MENA

South Africa

India

Japan

China Korea

N. Asia HQ

HK/Taiwan/

Macau

SAP HQ

Thailand

Canada

Colombia

Argentina

Headquarters

Regional headquarters

Sales offices

Configuration &

Logistics Centers

Chile

Malaysia

www.axis.com

AXIS Q1921/-E Thermal Network Cameras

High quality detection and wide range coverage

www.axis.com

1200 m

9°

700 m

15°

AXIS Q1921 – AXIS Q1910

380 m

29°

200 m

55°

Range: 550m Range: 200m

AXIS Q1921

AXIS Q1910

www.axis.com

Convergence rates by end-user industry 2009

Source: IMS Research

www.axis.com

Global & regional resources in business development

Transportation BankingRetail City surveillance

www.axis.com

Video surveillance market 2009 - 2014

Source: IMS Research 2010

2009

$ 8,265 million

Asia 40%EMEA 25%

Americas 35%

Asia 46%EMEA 23%

Americas 31%

2014

$14,474 million

www.axis.com

Industry segments* 2009 vs. 2014

0

500

1000

1500

2000

2500

3000

3500

4000

2009 2014

Reven

ue (

$M

)Transportation

Banking and Finance

Commercial

Government

Retail

Education

Healthcare

Manufacturing and Industrial

Residential

* Video surveillance equip.

www.axis.com

Market shares for all cameras in 2009

Rank Supplier 2009

1 Panasonic (PSS)

2 Axis Communications

3 Pelco

4 Bosch Security Systems

5 Samsung Techwin

Source: IMS Research 2010

IMS

Research

report

2010

www.axis.com

Market shares for network cameras in 2008-2009

Rank Supplier 2009

1 Axis Communications

2 Panasonic (PSS)

3 Sony

4 Mobotix

5 Panasonic (PCC)

Source: IMS Research 2010

IMS

Research

report

2010

www.axis.com

> 2009: 8.3 billion USD total video market

– 30% penetration gives 2.5 billion USD network video

> 2014: 14.5 billion USD total video market

– 50% penetration gives 7.3 billion USD network video

> Assume a cautious scenario for 2014-2020

– Half the predicted growth rate for video surveillance

implies 20 billion USD total market

– 80% penetration implies 16 billion USD network video

> Market opportunity the coming 10 years: 18% CAGR

Long term growth opportunity

www.axis.com

The market situation today

Short-term perspective

> The number of project inquiries on a stable level

> Expansion to continue

– Product portfolio

– Employees

Long-term perspective

> High growth potential for network video

> Axis’ goals remain unchanged

www.axis.com

Thank you!

network video

innovation

glo

bal

HD

TV

part

ner

netw

ork

leader

camera

protect

outdoor

image usability

leader

safe

therm

al

easy installation

inte

llig

en

t

open

integrationease of use

competence

megapixel

environment

worldwide

H.264

focus

Axis

video encoder

converg

ence

Get the Axis picture. Stay one step ahead.