About Axis Communications. Axis is an IT company offering network video solutions for professional installations. The company is the global market leader in network video, driving the ongoing shift from analog to digital video surveillance. Axis products and solutions focus on security surveillance and remote monitoring, and are based on innovative, open technology platforms. Axis is a Swedish-based company, operating worldwide with offices in more than 20 countries and cooperating with partners in more than 70 countries. Founded in 1984, Axis is listed on the NASDAQ OMX, under the ticker AXIS. For more information about Axis, please visit our web site at www.axis.com.

 

Sales growth during the third quarter was above the long-term

expectations in the market and the irregularity between indi-

vidual quarters continued. Apart from an increased proportion

of larger projects, the different inventory strategies of the

distributors were contributory factors to this trend. During the

third quarter, sales growth in the Americas region was affected

to some extent by stockbuilding among our US distributors.

Meanwhile, demand from public buyers was high as the budg-

etary year ended.

Better image quality and cost effective installations are some of

the benefits within network video that are driving the rapid

technology shift in the market. The trend was extra clear

during the third quarter and we saw strong demand for Axis’

products in the US, Asia and in some of the largest markets in

EMEA. In addition, the operating margin was positively affected

by lower seasonal costs and a somewhat stronger USD.

It is difficult to judge how the present economic uncertainty

will impact the demand for Axis’ products. At present, we do not

see any negative signals as regards to the number of project

requests. In the longer term, we foresee a continued positive

development within network video with an expected annual

growth potential of 25–30 percent. Our expansion plans to

promote growth are thus unchanged.

Ray Mauritsson

President

Interim report January–September 2011

 

The third quarter • Net sales increased during the third quarter by

32 percent to SEK 971 M (737). Net sales in-creased by 45 percent in local currencies.

• Operating profit increased to SEK 225 M (121), which corresponds to an operating margin of 23.2 percent (16.4).

• Profit after tax amounted to SEK 164 M (88). • Earnings per share amounted to SEK 2.37 (1.27). • Resultatet per aktie uppgick till 0,96 kr (0,76).

Strong development during the quarter

January–September • Net sales during the period amounted to SEK 2,527 M

(2,058), corresponding to growth of 23 percent. Net sales increased by 37 percent in local currencies.

• Operating profit increased to SEK 441 M (290), which corresponds to an operating margin of 17.5 percent (14.1).

• Profit after tax amounted to SEK 322 M (210). • Earnings per share amounted to SEK 4.63 (3.03).

  2  

Events during the third quarter 15 years since the first network camera

Axis launched the world’s first network camera in September 1996. This marked the

first stage in the shift from analog to digital video surveillance, a market which today, 15

years later, has expected sales of USD 2.7 billion. Axis marked this anniversary during the

quarter in connection with various partner events in Asia, Europe and in the US.

At the same time, Axis continues to train its partners in the benefits of network video.

Almost ninety training courses for approximately 1,000 participants were conducted in

all regions during the third quarter within the terms of the company’s own training pro-

gram, Axis Communications Academy. Slightly more than 20,000 participants have

been trained, since the start in 2005.

High activity in all end customer segments

During the quarter, a continued strong inflow of projects was noted for installations within

the retail sector, the transport sector and public administration. In Asia, particularly strong

activity was seen among customers within the city surveillance and retail segments. Axis

received several new orders in connection with infrastructure projects in a number of

places worldwide.

New positive report from IMS Research

In its latest report (The World Market for CCTV & Video Surveillance Equipment), the Eng-

lish market research company IMS Research raised its growth forecast for the total camera

surveillance market somewhat and now estimates a total market size of USD 18 billion by

2015 compared to USD 9 billion in 2010. Growth in the part of the market Axis operates

within – network camera surveillance – is predicted to grow by 25 percent per year, which

is in line with previous forecasts. Axis is still regarded as the clear market leader in the net-

work camera category and is ranked number two in the encoders category – an important

product for facilitating the shift from analog to digital video surveillance.

Offer developed for smaller installations

Axis Video Hosting System (AVHS) is a system developed by Axis which means that cus-

tomers can easily install and manage a security system even in smaller scale installations.

In September, it was announced at the ASIS security fair in the US that a number of Axis’

partners, e.g. ADT Commercial, have starting to deliver product offers built on AVHS. These

offers, which in time will contribute to further boosting the penetration within digital sur-

veillance are targeted towards smaller stores or companies in need of effective security in-

stallations.

More cameras with light sensitive functions

Axis continues to introduce products with innovative functions. Two new network cam-

eras, AXIS Q1604 and AXIS Q1604-E, were released at the US security fair, which are able

to handle mixed light and deliver sharp images in difficult lighting conditions. The cameras

  3  

are perfectly suited for monitoring of entrances and buildings with large windows, for ex-

ample in airports, train stations and city surveillance applications. Another of Axis’ innovative network cameras in the AXIS 16 series, Axis Q1602, was cho-

sen as the ASIS Accolade winner at the same security fair. This prestigious award recognizes

the sector’s most innovative products and solutions. Axis Q1602 is the market’s most light

sensitive network camera which can make details and colours visible even in dim light

using Axis’ proprietary Lightfinder technology. Continued global expansion

In order to be able to continue driving the technology shift from analog to digital surveil-

lance Axis is boosting its global presence through recruitments and new establishments. 57

people were added to the workforce during the third quarter, mainly by strengthening the

global sales organisation. A new sales office was established in Mexico. Since year-end, Axis

has increased its global presence with own personnel in the Czech Republic, Hungary, Tur-

key and Saudi Arabia.

Comments on the income statement and balance sheet Net sales

The third quarter

Net sales for the third quarter amounted to SEK 971 M (737), which was an increase of

32 percent. Foreign currency effects had a negative impact on sales of SEK 99 M.

Sales in the EMEA region amounted to SEK 374 M (300) during the third quarter, corres-

ponding to growth of 25 percent. Growth totaled 32 percent in local currency. Greatest in-

terest was shown by customers active within infrastructure as well as the transport and

city surveillance segments. The countries in Southern Europe continue to display a stable

demand trend.

Sales in the Americas region amounted to SEK 500 M (360) during the third quarter, cor-

responding to growth of 39 percent. Growth totaled 57 percent in local currency. The shift

to network video in the North American market is still proceeding rapidly. In addition, the

third quarter is seasonally strong as public purchasing is carried out in connection with the

end of the budgetary year in the US. During the quarter, sales growth in the region was also

affected to some extent by stockbuilding among our US distributors.

The Asia region reported sales of SEK 97 M (77) during the third quarter, corresponding to

growth of 27 percent. Growth totaled 42 percent in local currency. The interest for net-

work video products continued to be strong in the region, particularly within city surveil-

lance and retail. Customers in the Asian market often choose a digital system directly,

which means that the market for network video has shown good growth, although from

lower levels than the other regions.

0

5

10

15

20

25

30

35

40

45

50

0

100

200

300

400

500

600

700

800

900

1000

Sales

Video sales SEK M

Total video growth %

776 774 786 850

888 914 983

1031 1088

0

200

400

600

800

1000

1200

Number of employees

EMEA 39 %

Americas 51 %

Asia 10 %

Invoiced sales per region, Q3 2011

  4  

January–September

Net sales for the period January–September totaled SEK 2,527 M (2,058), an increase of

23 percent in Swedish kronor and 37 percent in local currency. Foreign currency ef-

fects, primarily from USD and EUR, impacted sales negatively during the period by SEK

297 M.

Invoiced sales per product group, SEK M

Q3 2011

Q3 2010

Q1–Q3 2011

Q1–Q3 2010

Full year 2010

Q4 10 –Q3 11

12 months

Video 965.5 722.1 2,503.8 2,021.1 2,890.1 3,372.8

Other 5.7 14.7 22.9 36.6 42.9 29.2

TOTAL 971.2 736.8 2,526.7 2,057.7 2,933.0 3,402.0

Invoiced sales per region, SEK M

Q3 2011

Q3 2010

Q1–Q3 2011

Q1–Q3 2010

Full year 2010

Q4 10 –Q3 11

12 months EMEA 374.1 300.0 1,027.2 856.2 1,259.6 1,430.6

Americas 499.7 360.3 1,244.3 993.1 1,373.0 1,624.2

Asia 97.4 76.5 255.2 208.4 300.4 347.2

TOTAL 971.2 736.8 2,526.7 2,057.7 2,933.0 3,402.0

Earnings

The third quarter

Operating profit during the third quarter amounted to SEK 225 M (SEK 121), which

corresponds to an operating margin of 23.2 percent (16.4). The higher operating margin

compared to the first and second quarter was mainly explained by lower costs due to

seasonal factors such as the vacation period and lower market activity. The gross margin

continued to be stable and amounted to 51.5 percent (50.4) during the third quarter.

Profit before tax was SEK 224 M (120). Profit after tax amounted to SEK 164 M (88).

Changes in foreign exchange rates impacted operating profit positively by SEK 33 M,

compared to the corresponding period of the preceding year.

January–September

The Group’s operating profit during the period amounted to SEK 441 M (290),

corresponding to an operating margin of 17.5 percent (14.1). The gross margin totaled

51.2 percent (50.7). Profit before tax was SEK 439 M (288) and profit after tax was SEK

322 M (210). Changes in foreign exchange rates impacted operating profit negatively by

SEK 44 M, compared to the corresponding period of the preceding year.

Condensed income statement, SEK M

Q3 2011

Q3 2010

Q1–Q3 2011

Q1–Q3 2010

Full year 2010

Q4 10 –Q3 11

12 months

Net sales 971.2 736.8 2,526.7 2,057.7 2,933.0 3,402.0

Gross profit 499.7 371.0 1,293.7 1,044.0 1,486.3 1,736.0

Gross margin 51.5 % 50.4 % 51.2 % 50.7 % 50.7 % 51.0 %

Operating profit 224.9 120.5 441.4 289.6 415.0 566.8

Operating margin 23.2 % 16.4 % 17.5 % 14.1 % 14.1 % 16.7 %

Pretax profit 224.0 119.8 439.4 288.1 412.8 564.1

0

50

100

150

200

250

300

350

400

450

500

Sales per region, SEK M

EMEA Americas Asia

0

10

20

30

40

50

60

0

40

80

120

160

200

240

2009

Q4

2010

Q1

Q2

Q3

Q4

2011

Q1

Q2

Q3

Operating profit / EBIT

EBIT SEK M

Gross margin %

EBIT margin %

  5  

Cash flow, investments and financial position

The cash flow from operating activities for the period amounted to SEK 226 M (60). Net

investments totaled SEK 55 M (33), of which capitalized development costs amounted to

SEK 16 M (13). The strong cash flow during the third quarter could be explained mainly by

the strong operating profit combined with a stable working capital. Axis had SEK 224 (82)

M in cash and cash equivalents at the end of the period, as well as unutilized credit facili-

ties of SEK 200 (170). Accordingly, the company had a total of SEK 424 M (252) at its dis-

posal at September 30, 2011. Shareholders’ equity

Consolidated equity amounted to SEK 630 M (529). The total number of shares at the end

of the period was 69,461,250 (69,418,200). Axis has no outstanding stock option pro-

grams. The group’s equity/assets ratio at September 30, 2011 was 43 percent (47.6).

(SEK M) Share

capital Other contri-buted capital

Other reserves

Retained earnings

Total equity

Opening balance at Jan 1, 2010 0.7 275.0 -0.6 333.3 608.4 Total comprehensive income for the period - - -13.5 210.0 196.5

Exercise of warrants - 1.9 - - 1.9

Dividend - - - -277.5 -277.5

Closing balance at Sept 30, 2010 0.7 276.9 -14.1 265.8 529.3

Opening balance at Jan 1, 2011 0.7 279.2 -8.3 355.6 627.2 Total comprehensive income for the period - -5.4 -1.2 321.8 315.2

Dividend - - - -312.6 -312.6

Closing balance at Sept 30, 2011 0.7 273.8 -9.5 364.8 629.8

Parent company

The parent company’s operations are primarily focused on company-wide administra-

tion. The parent company has no employees. Sales during the period amounted to SEK 9

M (6) and operating profit to SEK -6 M (–2). At the end of the period, cash and cash

equivalents amounted to SEK 76 M (0) and borrowing was SEK 0 M (30). No invest-

ments have taken place during the period.

Outlook Axis and external market research institutions estimate the annual growth potential of the

network video market to be 25–30 percent in the next few years. Axis has a good basis for

a continued positive development within network video in line with the expected annual

growth potential.

It is difficult to judge how the present economic uncertainty will impact the demand for

Axis’ products. At present, we do not see any negative signals as regards to the number of

project requests.

The, at times, irregular sales trend between individual quarters is expected to continue.

  6  

During the third quarter, sales were positively impacted by stockbuilding among certain

distributors in the Americas region and a seasonally strong market in the US. These

circumstances are not expected to continue during the fourth quarter.

In order to meet market demand and retain its position as the market-leading supplier of

network video solutions, Axis will continue to invest in product development, refine the

partner network and also recruit more personnel and expand globally.

Other Risks and uncertainties

Axis’ operations are subject to a number of risks and uncertainties, which are described in

the 2010 Annual Report. Apart from the global macroeconomic uncertainty, it is our as-

sessment that no new significant risks or uncertainties have arisen as of September 30.

Accounting policies

This interim report is prepared in accordance with the Swedish Annual Accounts Act and

IAS 34, Interim Financial Reporting. For information on the accounting policies applied, see

the 2010 Annual Report. The accounting policies are unchanged, compared with those

applied in 2010.

Nomination Committee

Axis’ nominating committee is composed of representatives from the three largest share-

holders; Christer Brandberg (Inter Indu AB), Therese Karlsson (LMK Industri AB) and Martin

Gren (AB Grenspecialisten). Christer Brandberg is Chairman and Convener. Proposals and

viewpoints from shareholders concerning the composition of the board of directors may be

submitted in writing to the following address: Axis AB, attn. Adrienne Jacobsen, Emdala-

vägen 14, 223 69 Lund, Sweden, or by phone +46 46 272 18 00.

Annual General Meeting

Axis’ Annual General Meeting will take place on April 18, 2012 at 5 p.m. in Lund. The

venue will be announced subsequently.

The Axis share

The company’s share is listed on the OMX Nordic Exchange, Stockholm AB on the Mid

Cap segment, under the ticker AXIS. During the period January–September, 2011, the

Axis share had a turnover of 26,368,547 shares which gave an average turnover of

139,516 shares per trading day, at a value of SEK 18 M per trading day. The average

price of the share during the period was SEK 130.62.

  7  

Reporting dates

Axis will report on the following dates during the 2012 fiscal year:

– Year-end report: February 2, 2012

– Interim report, January-March: April 17, 2012

– Interim report, January-June: July 10, 2012

– Interim report, January-September: October 18, 2012

Lund, October 19, 2011

Ray Mauritsson

President

  8  

Consolidated income statement (SEK M)

Q3 2011

Q3 2010

Q1–Q3 2011

Q1–Q3 2010

Full year 2010

Q4 10 –Q3 11

12 months

Net sales 971.2 736.8 2,526.7 2,057.7 2,933.0 3,402.0

Cost of sold products and services -471.5 -365.8 -1,233.0 -1,013.7 -1,446.7 -1,666.0

Gross profit 499.7 371.0 1,293.7 1,044.0 1,486.3 1,736.0

Other revenues and changes in value 25.7 2.2 16.7 -10.1 -22.3 4.5

Selling and marketing costs -153.8 -134.2 -434.3 -391.3 -553.6 -596.6

Administrative costs -33.8 -27.0 -98.8 -82.3 -113.3 -129.8

Research and development costs -112.9 -91.5 -335.9 -270.7 -382.1 -447.3

Operating profit * 224.9 120.5 441.4 289.6 415.0 566.8

Financial expenses -0.9 -0.7 -2.0 -1.5 -2.2 -2.7

Pretax profit 224.0 119.8 439.4 288.1 412.8 564.1

Tax -59.6 -31.6 -117.6 -78.1 -113.0 -152.5

Net profit for the period 164.4 88.2 321.8 210.0 299.8 411.6

Other comprehensive income

Cash flow hedges - 0.4 - 1.1 1.2 0.1

Hedging of net investments - 0.0 - 0.3 0.3 -

Exchange rate differences -1.7 -25.9 -6.6 -14.5 -8.8 -0.9

Tax attributable to components in other comprehensive income - -0.1 - -0.4 -0.4 0.0

Other comprehensive income for the period, net after tax -1.7 -25.6 -6.6 -13.5 -7.7 -0.8

Net profit for the period 162.7 62.6 315.2 196.5 292.1 410.8 Total comprehensive income attributable to: The Parent Company’s shareholders 162.7 62.6 315.2 196.5 292.1 410.8

Earnings per share before dilution, SEK 2.37 1.27 4.63 3.03 4.32 5.93

Earnings per share after dilution, SEK 2.37 1.27 4.63 3.02 4.32 5.93

Average number of shares before dilution, thousands 69,461 69,405 69,461 69,388 69,406 69,461

Average number of shares after dilution, thousands 69,461 69,440 69,461 69,440 69,406 69,461

* Net effects of changes in exchange rates in underlying liabilities and receivables denominated in foreign currencies have impacted operating profit positively by SEK 26 M (2) for the third quarter and positively by SEK 15 M (negatively by 11) for the first nine months.

Cash-flow statement (SEK M)

Q3 2011

Q3 2010

Q1–Q3 2011

Q1–Q3 2010

Full year 2010

Q4 10–Q311 12 months

Cash flow from operating activities before change in working capital 208.3 87.8 377.3 234.5 368.6 511.4

Change in working capital -26.8 -64.8 -151.6 -174.2 22.8 45.4

Cash flow from operating activities 181.5 23.0 225.7 60.3 391.4 556.8

Cash flow from investment activities -13.4 -10.8 -55.4 -32.5 -51.7 -74.6

Cash flow from financing activities -74.9 -17.9 -312.3 -247.5 -275.2 -340.0

Cash flow for the period 93.2 -5.7 -142.0 -219.7 64.5 142.2

Cash and cash equivalents, beginning of period 131.1 87.8 366.3 301.8 301.8 82.1

Cash and cash equivalents, end of period 224.3 82.1 224.3 82.1 366.3 224.3

  9  

Consolidated balance sheet

(SEK M) Sept 30, 2011 Sept 30, 2010 Dec 31, 2010

Fixed assets 174.3 131.7 141.4

Inventories 409.6 328.8 294.2

Trade receivables 536.4 441.5 420.9

Other receivables 120.5 128.9 56.2

Cash and cash equivalents 224.3 82.1 366.3

Total 1,465.2 1,113.1 1,278.9

Shareholders’ equity 629.8 529.3 627.2

Long-term liabilities 109.1 78.3 92.9

Payables 277.7 150.2 235.3

Current liabilities 448.5 355.3 323.5

Total 1,465.2 1,113.1 1,278.9

Key figures Q3

2011 Q3

2010 Q1–Q3 2011

Q1–Q3 2010

Full year 2010

Net sales growth (%) 31.8 29.7 22.8 25.3 27.5

Gross margin (%) 51.5 50.4 51.2 50.7 50.7

Operating margin (%) 23.2 16.4 17.5 14.1 14.1

Profit margin (%) 23.1 16.3 17.4 14.0 14.1

Depreciation/amortization (SEK M)* 34.2 41.4 34.2 41.4 41.1

Shareholders’ equity (SEK M) 630 529 630 529 627

Capital employed (SEK M) 655 638 655 638 720

Interest-bearing liabilities (SEK M) - 30 - 30 -

Net debt (SEK M)** 224 52 224 52 366

Total assets (SEK M) 1,465 1,113 1,465 1,113 1,279

Return on capital employed (%)* 82.5 62.1 82.5 62.1 59.2

Return on total capital (%)* 41.3 36.8 41.3 36.8 34.6

Return on equity (%)* 66.2 52.9 66.2 52.9 49.3

Interest-coverage ratio (times)* 209.9 205.1 209.9 205.1 191.4

Equity/assets ratio (%) 43.0 47.6 43.0 47.6 49.0

Share of risk-bearing capital (%) 54.6 59.3 54.6 59.3 54.9

Capital turnover ratio (times) 1.4 1.1 3.7 1.1 4.2

Number of employees (average for the period) 1,060 872 1012 828 848

Sales per employee (SEK M)* 3.2 3.1 3.4 3.3 3.5

Operating profit per employee (SEK M)* 0.5 0.5 0.6 0.5 0.5

* The key figures have been recalculated to full-year values. ** Refers to net interest-bearing receivables and liabilities.

Per-share data Sept 30, 2011 Sept 30, 2010 Dec 31, 2010

Share price at end of period, SEK 113.75 97.50 122.50

Dividend, SEK 4.50 4.00 4.00

P/E multiple 19 23 28

Earnings per share before dilution, SEK 4.63 3.03 4.32

Earnings per share after dilution, SEK 4.63 3.02 4.32

Average number of shares before dilution, thousands 69,461 69,405 69,406

Average number of shares after dilution, thousands 69,461 69,440 69,406

Number of shares outstanding, thousands 69,461 69,418 69,461

  10  

Quarterly data

Invoiced sales per product group (SEK M)

Q4 2008

Q1 2009

Q2 2009

Q3 2009

Q4 2009

Q1 2010

Q2 2010

Q3 2010

Q4 2010

Q1 2011

Q2 2011

Q3 2011

Video 480.4 509.7 531.3 558.1 645.8 633.1 665.0 722.1 869.0 797.6 740.7 965.5

Other 20.1 21.9 10.9 9.9 13.0 9.5 13.3 14.7 6.3 10.7 6.4 5.7

TOTAL 500.5 531.6 542.2 568.0 658.8 642.6 678.3 736.8 875.3 808.3 747.2 971.2

Invoiced sales per region (SEK M)

Q4 2008

Q1 2009

Q2 2009

Q3 2009

Q4 2009

Q1 2010

Q2 2010

Q3 2010

Q4 2010

Q1 2011

Q2 2011

Q3 2011

EMEA 243.2 223.0 222.5 235.6 319.9 291.0 265.2 300.0 403.4 332.2 320.9 374.1

Americas 203.6 259.2 277.8 281.6 266.8 285.2 347.6 360.3 379.9 394.6 350.0 499.7

Asia 53.7 49.4 41.9 50.8 72.1 66.4 65.5 76.5 92.0 81.5 76.3 97.4

TOTAL 500.5 531.6 542.2 568.0 658.8 642.6 678.3 736.8 875.3 808.3 747.2 971.2

Q4 2008

Q1 2009

Q2 2009

Q3 2009

Q4 2009

Q1 2010

Q2 2010

Q3 2010

Q4 2010

Q1 2011

Q2 2011

Q3 2011

Net sales growth % 4.6 21.5 9.8 4.6 31.6 20.9 25.1 29.7 32.9 25.8 10.2 31.8

Gross margin (SEK M) 269.2 296.7 296.7 297.0 345.8 333.8 339.2 371.0 442.3 411.5 382.4 499.7

Gross margin % 53.8 55.8 54.7 52.3 52.5 52.0 50.0 50.4 50.5 50.9 51.2 51.5

Operating margin (SEK M) 49.4 46.4 46.4 94.6 120.6 95.2 74.0 120.5 125.3 126.2 90.2 224.9

Operating margin % 9.9 8.7 8.6 16.7 18.3 14.8 10.9 16.4 14.3 15.6 12.1 23.2

Parent company income statement

(SEK M) Q1–Q3 2011 Q1–Q3 2010 Full year 2010

Net sales 8.6 5.7 8.1

Gross profit 8.6 5.7 8.1

Administrative costs -14.3 -7.6 -11.6

Operating profit -5.7 -1.9 -3.5

Result from participations in Group companies - - 327.2

Financial income 22.6 55.6 66.9

Financial expenses -15.3 -19.9 -22.3

Pretax profit 1.7 33.8 368.2

Change in tax allocation reserve - - -92.8

Tax -0.4 -8.9 -74.0

Net profit for the period 1.2 24.9 201.4

Parent company balance sheet

(SEK M) Sept 30, 2011 Sept 30, 2010 Dec 31, 2010

Fixed assets 15.6 2.3 2.3

Receivables from Group companies 227.5 495.4 525.6

Accounts receivable and other receivables 2.2 2.0 0.8

Tax receivables 46.2 27.0 0.0

Cash and cash equivalents 75.6 0.0 174.9

Total 367.1 526.7 703.6

Shareholders’ equity 8.3 141.1 319.7

Untaxed reserves 356.4 263.6 356.4

Liabilities to Group companies 1.0 0.9 1.0

Current liabilities 1.5 121.1 26.6

Total 367.1 526.7 703.6

  11  

Review report We have reviewed this report for the period January 1 to September 30, 2011, for Axis

Group AB (publ). The board of directors and the CEO are responsible for the preparation

and presentation of this interim report in accordance with IAS 34 and the Swedish

Annual Accounts Act. Our responsibility is to express an opinion on this interim financial

information based on our review.

We conducted our review in accordance with the Swedish Standard on Review Engage-

ments (SÖG) 2410, Review of Interim Financial Information Performed by the Inde-

pendent Auditor of the Entity. A review consists of making inquiries, primarily of persons

responsible for financial and accounting matters, and applying analytical and other re-

view procedures. A review has a different focus and is substantially less in scope than an

audit conducted in accordance with International Standards on Auditing (ISA) and other

generally accepted auditing standards in Sweden. The procedures performed in a review

do not enable us to obtain a level of assurance that would make us aware of all signifi-

cant matters that might be identified in an audit. Accordingly, the conclusion expressed

based on a review does not constitute the same level of assurance as a conclusion based

on an audit.

Based on our review, nothing has come to our attention that causes us to believe that

the accompanying interim financial information is not, in all material respects, in ac-

cordance with IAS 34 and the Swedish Annual Accounts Act regarding the group, and

with the Swedish Annual Accounts Act, regarding the parent company.

Lund, October 19, 2011

PricewaterhouseCoopers AB

Ola Bjärehäll

Authorized Public Accountant

Auditor in charge

  12  

Analyst & Press Conference Axis will hold a teleconference for the media and financial analysts today.

A presentation is available on http://www.axis.com/corporate/investor/index.php

Time: October 20 at 10 a.m.

Phone number: +46 8 50 52 01 10. Specify Axis Communications.

For further information please contact:

Ray Mauritsson, President

Fredrik Sjöstrand, CFO

Margareta Lantz, Manager, Investor Relations & Corporate Communications

Phone: +46 708 901892

Axis discloses the information provided herein pursuant to the Swedish Securities Markets

Act and/or the Swedish Financial Instruments Trading Act. The information was submitted

for publication on October 20, 2011 at 8 a.m. CET.