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Continued profitable growth January- September 2008

Continued profitable growth January- September 2008. Ray Mauritsson, CEO & President Fredrik Sjöstrand, CFO. This is Axis. Founded in 1984 IT company driving the network video market Worldwide presence in more than 20 countries, 680 employees* Product areas: Network Video Solutions

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Continued profitable growth January- September 2008

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  1. Continued profitable growthJanuary- September 2008 Ray Mauritsson, CEO & President Fredrik Sjöstrand, CFO

  2. This is Axis • Founded in 1984 • IT company driving the network video market • Worldwide presence in more than 20 countries,680 employees* • Product areas: • Network Video Solutions • Network Print Servers • Global partnerships through distributors, resellers and system integrators • Listed on OMX Nordic Exchange, Stockholm under the ticker AXIS * September 30

  3. Today's agenda • Financials • Profitable growth • Stable margins • High currency impact • Market & Product update • Outlook

  4. MSEK Growth Sales January – September 2008 • Total sales • 1 474 MSEK (1 193) • Growth 24% • Currency effects – 73 MSEK • Video sales • 1 405 MSEK (1 090) • Growth 29% • Growth 35% (local currency)

  5. MSEK Operating expenses, Q1, 2007- Q3, 2008

  6. MSEK Margin EBIT and Gross margin* • Gross margin • 54.8 % (54.5%) • Operating margin • 24.3 % (23.1%) • Profit margin • 24.1 % (23.0%) *Q3 2008

  7. Sales in the product areas* Video Print, Scan & others 96% 4% *Q3 2008

  8. Sales in the regions* Americas EMEA Asia 49% 43% 8% *Q3 2008

  9. Currency effects on total sales by region MSEK

  10. Axis new product generation • Easy implementation and management of large-scale video surveillance systems • More cost-efficient system solutions • Higher image quality and optimized video streams • The new generation of Axis network video products are well received on the market.

  11. AXIS P3301/-V Fixed Dome Network Cameras Multiple H.264 streams and superior image quality Compact design Indoor environments, such as retail, banking, government buildings, schools, universities and airports.

  12. New generations of Video Encoders AXIS Q7900 AXIS Q7406 AXIS Q7401 AXIS Q7401 • Small, compact video encoder • Multiple H.264 streams as well as Motion JPEG • Power over Ethernet (PoE)with power feed to camera • Two-way audio

  13. Video surveillance as Internet service

  14. Axis STS Press release, September, 30 • Axis network cameras are part of the Swedish insurance company LänsförsäkringarÄlvsborg’s alarm service • Avoid paying deductibles and to obtain a discount on their insurance premiums • Initially offer the AXIS 207 STS network camera

  15. Global industry standard for the interface of network video products • Supporting the shift from analog to digital video surveillance in the security market • More information onwww.onvif.org • Benefits • Increased flexibility • Greater freedom • Simplified installation of network video products regardless of brand

  16. Successful global installations • Press release, September,8th • SPAR, retail chain in Austria • 750 stores • 10-15 AXIS 207 in each store • Baiyun Airport, Kina (Transportation) • City of Buffalo, US (City Surveillance) • Keiyo, Japan (Transportation) • Water Resources Agency, Taiwan (Gov.) • Chinese Culture Univ., China (Education) • Ville de Vauvert, France (City Surv.) • Bilbao Harbour, Spain (Gov.) • Knowsley College, UK (Education) • Minnesota Dept.of Transportation, US • Longmont, Colorado, US (City Surv.)

  17. The market situation of today • Continued high interest of network video products • The networkvideo market is expected to grow fast • Smaller adjustments from IMS • Global financial turmoil affects investments • affects the pace of the technology shift from analog to digital technology

  18. What makes the difference Global reach Focus Partner network

  19. Questions & Answers Q&A

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