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Weak growth ended 2008 January- December 2008

Axis, founded in 1984, is a leading IT company driving the network video market. With a worldwide presence in over 20 countries and a diverse product portfolio, Axis continues to grow despite the financial turmoil. This report highlights their financial performance, market updates, and product innovations.

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Weak growth ended 2008 January- December 2008

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  1. Weak growth ended 2008January- December 2008 Ray Mauritsson, CEO & President Fredrik Sjöstrand, CFO

  2. This is Axis • Founded in 1984, 25 years ago • IT company driving the network video market • Worldwide presence in more than 20 countries,716 employees* • Product areas: • Network Video Solutions • Network Print Servers • Global partnerships through distributors, resellers and system integrators • Listed on NASDAQ OMX, Stockholm under the ticker AXIS * December, 31

  3. Today's agenda • Financials • Sales • Operating expenses • Currency effects • Market & Product update • Outlook • Questions & Answers

  4. MSEK Growth Sales January – December 2008 • Total sales • 1 975 MSEK (1 671) • Growth 18% • Currency effects - 2 MSEK • Video sales • 1 885 MSEK (1 530) • Growth 23% • Growth 23% (local currency)

  5. MSEK Operating expenses, Q1, 2007- Q4, 2008

  6. MSEK Margin EBIT and Gross margin* • Gross margin* • 53.8 % (55.2%) • Operating margin • 9.9% (21.8%) • Profit margin • 9.8% (21.8%) *Q4 2008

  7. Sales in the product areas* Video Print, Scan & others 96% 4% *Q4 2008

  8. Sales in the regions* Americas EMEA Asia 40% 49% 11% *Q4 2008

  9. Currency effects on total sales by region MSEK

  10. Highlights, January – December 2008 • New product generation • Innovative products with H.264 • ONVIF, Global industry standard for the interface of network video products • Development of Partner program • 24,000* Channel Partners, + 10,000 • 620 ADP (Applications Development) partners, +170 • Global expansion • Opening of three new offices • 716 employees, +152 • Successful customer installations • Especially high interest in city surveillance and transportation

  11. Axis new product generation • The new generation of Axis network video products are well received on the market. • Including H.264 compression standard • More cost-efficient system solutions • Higher image quality and optimized video streams • Higher performance and more intelligence

  12. AXIS Q1755 • Newly launched HDTV network camera • High image quality • Autofocus • Day & Night • Strøget, pedestrian street in Copenhagen • Initiative from the police and Copenhagen Community • Crime prevention & safe city

  13. Market shares for video surveillance equip. in 2007 Source: IMS Research 2008

  14. Market shares for all cameras in 2007 Source: IMS Research 2008

  15. Market shares for network cameras in 2007 Source: IMS Research 2008

  16. The market situation today Short term perspective • Network video growth impacted by financial turmoil • Difficult to predict the market development • Continued expansion of the product portfolio and the partner program Long term perspective • Continued high growth potential for network video • Axis’ goals remain unchanged

  17. What makes the difference Global reach Focus Partner network

  18. Questions & Answers Q&A

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