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

Continued improved profitability

January – September 2004 Ray Mauritsson, CEO

Fredrik Sjöstrand, CFO

Highlights

Improved profitability Continued growth for Video, +31% Broadened product portfolio

Financial performance: Jan-Sep 2004

Net sales: SEK 492 M (460) Currency effects had a negative

impact of SEK 28 M Operating profit: SEK 20 M (loss:3)

Axis’ two main product areas

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

68% of sales An installed base of more

than 300,000 units

Network Print Servers Worldwide #2 position 23% of Axis’ sales An installed base of more

than 2,000,000 units

Financial performance: Q3, 2004

Net sales: SEK 172 M (155) Currency effects had a negative

impact of SEK 9 M Operating profit: SEK 18 M (1)

Sales by quarter

Q3: Continued strong

growth in Video

MSEK

2004

Video

Other

2003

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20

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140

160

180

Q1 Q2 Q3 Q4 Q1 Q2 Q3

EBIT by quarter

-10

-5

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30

Q1 -03

Q2 -03

Q3 -03

Q4 -03

Q1 -04

Q2 -04

Q3 -04

MkrQ3: Positive Development Gross margin:

53.5% (51.1) Operating margin:

10.2% (0.5) Profit margin:

10.8% (0.3)

Gross margin by quarter

0

10

20

30

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50

60

Q1 -03

Q2 -03

Q3 -03

Q4 -03

Q1 -04

Q2 -04

Q3 -04

%

Sales: Q3, 2004

68%Print23%

Other 9%

Video

19%

33%48%

Asia

Americas

EMEA

Sales by Product Group Sales by Region

Business development

New and developed partnerships (Videor Technical, Dvtel, Integral Technologies and Securitas)

Axis delivers network video products to Mexico´s largest electricity provider.

Axis delivers new customized print servers to Canon

Outlook

Further product launches ahead

Restrained development for Print

Long term profitable growth

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1998 1999 2000 2001 2002 2003

MSEK Video sales 1998-2003