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

Accelerating technology shift fuels video growth

January - December 2005

Ray Mauritsson, CEO

Axis’ two main product areas

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

85% of sales* Installed base of more

than 500,000 units

Network Print Servers Worldwide #2 position 12% of Axis’ sales* Installed base of more

than 3,000,000 units*Q4 2005

Highlights January-December

Total growth +29 % Continued growth within Video +55 % Accelerating network video market Channel partner program

Financial performance: January-December

Net sales: SEK 895 MSEK (691) Operating profit: SEK 128 MSEK (51) Profit before tax: SEK 128 MSEK (50)

Note: 2004 figures IFRS adjusted

Highlights Q4, 2005

Total growth +30 % Continued growth within Video High activity on the network video market

Financial performance: Q4, 2005

Q4-2005: Net sales 259 MSEK (199) Video growth 53 %

020406080

100120140160180200220240260

Q1-2004

Q2-2004

Q3-2004

Q4-2004

Q1-2005

Q2-2005

Q3-2005

Q4-2005

Other Video

EBIT by quarter

-10-505

1015202530354045

Q1 -04

Q2 -04

Q3 -04

Q4 -04

Q1-05

Q2-05

Q3-05

Q4-05

Mkr

Q4-2005: Gross margin:

53,1 % (53,0 %) Operating margin:

12,4 % (14,7 %) Profit margin:

12,4 % (14,6 %)

Note: 2004 figures IFRS adjusted

Sales Q4, 2005

Print12 %

Video85 %

Other1 % Americas

38 %

EMEA50 %

Asia12 %

Scan 2 %

*Q4 2005

1984 1992 1996 2000 2004 2006

IBM Protocol Converters

4 strategic steps

20 years of network intelligence

4th phase

3rd phase

2nd phase

1st phase

Print Servers

Storage

Network Video

Asia

Europe

USA

Global

Axis video sales 1998-2005

050

100150200250300350400450500550600650700750

SEK M

Global distribution and sales

Axis

ResellersSystem

integrators

End user

Distributors

Total:5849(end of December 2005)

Channel Partner Program

Solution Gold256

Authorized5342

Solution Silver/Premium 251

AXIS Academy

The program is a way to further invest in our relation with our partners

1000 system integrators participated during 2005

Customer segments

Retail

Bank Transportation

Government Education

Industrial

Benefits with network video in retail

The fastest growing segment within surveillance

Benefits with open systems Future proof Easy to install (PoE)

The AXIS ST System

Product Launches 2005

AXIS 221 Network Camera AXIS 211A Network Camera AXIS 210A Network Camera AXIS 207 Network Camera AXIS 207W Network Camera AXIS 225FD Fixed Dome Network Camera AXIS 241SA Video Server AXIS 241QA Video Server AXIS 240Q/Blade Video Server AXIS Camera Station 1.2 AXIS Image Enhancer AXIS Camera Management AXIS OfficeBasic USB Wireless G Print Server

AXIS 225FD – Key benefits

Vandal-resistant, outdoor-proof design for maximum protection

Superior image quality with progressive scan and Day/Night functionality

Power over Ethernet for reduced cabling and consolidated power

Multi-window motion detection with alarm image buffering

Powerful event management

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