www.axis.com

Interim reportJanuary – June 2010

Ray Mauritsson, CEO & PresidentFredrik Sjöstrand, CFO

www.axis.com

This is Axis

> 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,850 employees*

> Listed on NASDAQ OMX, Nordicunder the ticker AXIS

* June, 30, 2010

Axis Headquarter, Lund, Sweden

www.axis.com

Highlights, April – June 2010

> Very strong close of the second quarter

> Margin affected by

– Project pricing

– Strategic price list adjustments

– Currency effects

> High recruitment rate

www.axis.com

Sales

> January - June– 1 321 MSEK (1 074)

– Growth 23 %

– Currency effects, -135 MSEK

> April – June– 678 MSEK (542)

– Growth 25 %

– Currency effects, -52 MSEK

0%

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0

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800Video salesVideo growthTotal growth

MSEK Growth

www.axis.com

Currency effects on total sales by region

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

010

EMEA Americas Asia

Q1 10 Q2 10

www.axis.com

Operating expenses Q1 2007 – Q2 2010

0

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140

Sales & Marketing Administration Research & Development

www.axis.com

MSEK Margin

Margins*

> Gross margin*

– 50,0% (54,7%)

> Operating margin

– 10.9% (8.6%)

> Profit margin

– 10,8% (8.5%)

0%

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EBIT

Gross margin

EBIT margin

*Q2 2010

www.axis.com

AsiaEMEAAmericas

52% 39% 9%

Sales in the regions*

*Q2 2010

www.axis.com

Axis hiring 2002 – 2010 (Q2)

Employees

Q2

+20

www.axis.com

Continued high interest in government and transportation

Marshfield Police, USA

Siciliana MunicipalitiesItaly

Azteca Subway, Mexico

UTV.huHungary

www.axis.com

Axis offering in outdoor surveillance

> Reliable surveillance, in tough operating conditions

> Wide range of outdoor ready Axis network cameras

> Easy to install

> Efficient packaging and logistics

www.axis.com

Marketing activities in Q2

> Participation in trade shows

– ISC West, US

– IFSEC, UK and South Africa

– ISC, Brasil

– Transrussia, Russia

– EXPO 2010, Shanghai

> Partner events and training

– Numerous a day

> Total number of partners

– 33.000

www.axis.com

ONVIF – Open Network Video Interface Forum

> An open industry forum

– Global standardization creates new possibilities for end-users, integrators and manufacturers

– More than 200 members

– More than 170 conformant products released by members

> ONVIF extending the scope

– Access control

www.onvif.org

www.axis.com

The market situation today

Short-term perspective

> Continued expansion

– Product portfolio

– Partner program

– Recruitment

> Competition

> General component situation unchanged

Long-term perspective

> High growth potential for network video

> Axis’ goals remain unchanged

www.axis.com

Thank you!network video

innovation

glob

al

HD

TV

part

ner

netw

ork

leader

camera

protectoutdoor

image usability

leader

safe

thermal

easy installation

inte

llige

nt

open

integrationease of use

competence

megapixel

environment

worldwide

H.264 focus

Axis

video encoder

Get the Axis picture. Stay one step ahead.

convergence