Interim report

January – June 2010

Ray Mauritsson, CEO & President Fredrik 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, Nordic under the ticker AXIS * June, 30, 2010

www.axis.com

Axis Headquarter, Lund, Sweden

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

MSEK 800 700 600 500 400 300 200 100 0 Video sales Video growth Total growth Growth 70% 60% 50% 40% 30% 20% 10% 0% www.axis.com

Currency effects on total sales by region MSEK

10 0 -10 -20 -30 -40 -50 -60 EMEA Americas Asia Q1 10 Q2 10

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Operating expenses Q1 2007 – Q2 2010 MSEK 140 120 100 80 60 40 20 0 Sales & Marketing Administration Research & Development www.axis.com

Margins*

> Gross margin* – 50,0% (54,7%) > Operating margin – 10.9% (8.6%) > Profit margin – 10,8% (8.5%)

MSEK 140 120 100 80 60 40 20 0 EBIT Gross margin EBIT margin Margin 70% 60% 50% 40% 30% 20% 10% 0%

*Q2 2010

www.axis.com

Sales in the regions* Americas

52 %

EMEA

39 %

Asia

9 % *Q2 2010

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Axis hiring 2002 – 2010 (Q2) Employees

400 300 200 100 900 800 700 600 500

+20 +22 -10 +15 +66 +80 +156 +111 +76

0

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2002 2003 2004 2005 2006 2007 2008 2009 2010 Q2

Continued high interest in government and transportation Marshfield Police, USA www.axis.com

Siciliana Municipalities Italy Azteca Subway, Mexico UTV.hu

Hungary

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

Get the Axis picture. Stay one step ahead.

Axis competence

worldwide leader

convergence

open

megapixel

network video camera easy installation

Thank you!

safe

innovation

environment

protect leader image usability video encoder

thermal H.264

outdoor

ease of use

integration focus

www.axis.com