Focused strategy resulted in continued pace of sales Q1 - 2007 Ray Mauritsson, CEO Fredrik Sjöstrand, CFO.

Focused strategy resulted in continued pace of sales

Q1 - 2007

Ray Mauritsson, CEO

Fredrik Sjöstrand, CFO

This is Axis

Q1 2007

The market

The future

Todays agenda

This is Axis

Founded in 1984

An IT company driving the network video market

Worldwide presence in 18 countries, 477 employees

Product areas, Network Video Solutions Network Print Servers

Net sales in 2006: SEK 1 202 (US$163M)

Global partnerships through distributors, resellers and system integrators

Nordic List, Mid Cap, Information Technology

Global distribution and sales

Distributors

Resellers System integrators

End user

The market’s broadest video portfolio

Fixed cameras Domes & PTZ’s Video servers Management SW

AXIS 223MAXIS 221AXIS 225FDAXIS 216FD AXIS 216FD-VAXIS 211 and 211AAXIS 210 and 210AAXIS 207 and 207W AXIS 207MWAXIS 206AXIS 209FD-R

AXIS 232D+AXIS 231D+AXIS 214 PTZAXIS 213 PTZAXIS 212 PTZAXIS 233D

AXIS 243SAAXIS 243Q BladeAXIS 291 1U RackAXIS 242S IVAXIS 214QAXIS 241QAAXIS 247SAXIS 241Q & BladeAXIS 241S & 241SAAXIS 241S BladeAXIS 240Q & BladeAXIS 250S & Blade

ACSACM

ADP > 400 Partners

Total net sales 338 (257) MSEK

Total growth +32%

Stable growth within video +41%

Growth in all regions

High activity in the marketTransportationRetail

Highlights January-March

Sales January - March, 2007

Total sales 338 MSEK (257)

Growth 32%

Currency effects -26 MSEK

Video sales 309 MSEK (220)

Growth 41 %

MSEK Growth

0

50

100

150

200

250

300

350

Q1-

2005

Q2-

2005

Q3-

2005

Q4-

2005

Q1-

2006

Q2-

2006

Q3-

2006

Q4-

2006

Q1-

2007

0%

20%

40%

60%

80%

100%

120%

140%Video sales

Video growthTotal growth

Operating expenses

Selling and marketing costs - 66 112 - 50 376 -67 746

Administrative costs - 16 322 - 14 536 - 14 932

Research and development costs

- 43 015 - 36 152 - 44 996

Total costs - 125 449 - 101 064 -127 674

Q1,2007 Q1, 2006 Q4, 2006

EBIT January – March, 2007

Gross margin 55,1 % (53,8 %)

Operating margin 19,7% (14,8 %)

Profit margin 19,6% (14,7 %)

MSEK Margin

0

10

20

30

40

50

60

70

80

Q1-

2005

Q2-

2005

Q3-

2005

Q4-

2005

Q1-

2006

Q2-

2006

Q3-

2006

Q4-

2006

Q1-

2007

0%

10%

20%

30%

40%

50%

60%

70%

80%EBIT

Gross margin

EBIT margin

Sales in the product areas

Q1 2007

Video, + 41% Print, -33 % Scan & Other +1 %

Sales in the regions

Q1 2007

Americas, + 31 % EMEA, + 39% Asia, + 7 %Growth in the regions

Customer segments

Banking & Finance

Education

Government

Industrial

Retail

Transportation

Latest news

AXIS STS and Labs 2, January

Underground in Moscow, February

School in US, March

AXIS STS and Turkish telecom operator, March

Three year warranty, March

IBM, March

Product launch – AXIS 233D & AXIS 247S

AXIS 233D

Demanding security installations

Pan and tilt speed

Locate objects quickly

Detailed zoom of an area

Customer case – Moscow, Russia

Press release February, 2007Approx 1,000 network video products installed

Potential to further installations

The AXIS STS system

Growth of the global market

Growth10%

CCTV

Growth40%

NetworkVideo

Worldwide marketshares: security cameras

Top Ten Companies

1 Panasonic (PSS)

2 Pelco

3 Bosch Security Systems

4 Sony

5 Honeywell

5 Samsung Electronics

7 GE Security

8 Axis

9 JVC

10 Tyco Fire & Security

Source IMS Research

Future outlook, Axis goals

Focused product range Aggressive product development

Intelligent solutions

Focused business model Channel partnerships

Focused companyMarket leadership

Professional Network Video