AXIS Communications- a world of intelligent networks

Q1 2002

AXIS Communications- a world of intelligent networks

Q1 2002

CEO Peter RagnarssonCFO Jörgen Lindquist

Q1 2002

On track for profitable growth

Financial performance

Profitability and Positive Cash Flow… Operating profit improved by

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

Highlights Q1 2002

Continuous growth for Video Several new agreements Additional OEM-partnership New products Expanding global distribution

network

Axis 2002

Strengthened market positions

Strong technology platform

Broad product portfolio Proven business model

spreading risk Increasing profitability

and positive cash flow

Network Camera & Video Server

Worldwide #1

Markets and market positions

Network PrintingWorldwide #2

Network Scan & Store

Network WirelessAccess

Axis ThinServerTechnology

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%

Sales

Ongoing operations

0

50

100

150

200

Q1 Accum

2001 2002

MSEK

Q1 2002 Sales 164 MSEK (164) Stable sales despite

weak market condition

Video – Sales Q1 2002

Continued growth +28% New product

- 2460 DVR New agreements

Pro forma 2000

0

20

40

60

80

MSEK

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2000

Q1

2001 -02

Print – Sales Q1 2002

Weak market conditions New products,

wireless printing Additional distributor

partnerships

0

20

40

60

80

100

MSEK

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2000

Q1

2001 -02

Pro forma 2000

EBIT by Quarter

R&D overall¬ 31 MSEK in Q1 2002

Operating margin 6.5%

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

MSEK

Ongoing operations, MSEK

Sales per Quarter

0

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250

Q1 Q2 Q3 Q4

2000 2001 2002

Gross margin

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Q2-00

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Q2-01

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Q1-02

%

MSEK

Accounts receivables

Days of sales outstanding

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10

20

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Q1-00

Q2-00

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Q1-00

Q2-00

Q3-00

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Q1-02

Inventory

MSEK

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

This is Axis

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