Continued market leadership in rapidly growing network video market January - December 2006

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Continued market leadership in rapidly growing
network video marketJanuary - December 2006
Ray Mauritsson, CEO Fredrik Sjöstrand, CFO
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Todays Agenda

• This is Axis
• Highlights during 2006
• Financial 2006
• The network video market
• The future market
• Questions Answers

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This is Axis

• An IT- company driving the network video market
• Global market leader in network video
• World wide presence in 18 countries
• Global partnerships through distributors,
  resellers and system integrators
• Nordic List, Mid Cap, Information Technology

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Axis two main product areas

• Network Video Solutions
• Worldwide 1 position
• Axis largest product area, 90 of sales
• Installed base around 1,000,000 units

• Network Print Servers
• Worldwide 2 position
• 6 of Axis sales
• Installed base of more than 3,000,000 units

Q4 2006
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Highlights January-December

• Total growth 34
• Stable growth within Video 45
• Technology shift from analogue to digital
  solutions
• Launch of state-of-the-art network video products
• High activity in Retail and Transportation
• Increased number of partners

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Sales January - December, 2006
MSEK
Growth

• Total Sales
• 1 202 MSEK (895)
• Growth 34
• Currency effects -10 MSEK
• Video Sales
• 1 062 MSEK (733)
• Growth 45

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EBIT January December, 2006
MSEK
Margin

• Gross margin54.8 (54.0)
• Operating margin 18.6 (14.3)
• Profit margin18.5 (14.2)

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Sales Q4, 2006
Asia 11
Video 90
EMEA53
Print 6
Scan 3
Other1
Americas 36
Q4 2006
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Global distribution and sales
Axis
Distributors
System integrators
End user
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Channel Partner Program
Total 10,000
ADP partners 400 in 43 countries
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Being a partnership expert

• Some of our partners

• Anixter
• Ingram Micro

• ConvergintTechnologies
• Diebold
• Group 4 Securicor
• Securitas
• Siemens

• Honeywell
• Lenel
• Milestone

• EMC

• Motorola

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Customer segments
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The markets broadest video portfolio
Video management software ACS ACM ADP gt
400 Partners
Fixed cameras AXIS 223M AXIS 221 AXIS 225FD AXIS
216FD AXIS 216FD-V AXIS 211A AXIS 211 AXIS
210 AXIS 210A AXIS 207W AXIS 207 AXIS 207MW AXIS
206 AXIS 209FD-R
Network domes PTZ cameras AXIS 232D AXIS
231D AXIS 214 PTZ AXIS 213 PTZ AXIS 212 PTZ
Video servers AXIS 242S IV AXIS 241QA AXIS
241Q AXIS 241Q Blade AXIS 241SA AXIS 241S AXIS
241S Blade AXIS 240Q AXIS 240Q Blade
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AXIS 209FD-R

• Network camera for mobile video surveillance
• Rugged network camera
• 10,000 cameras in Stockholm buses

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AXIS 223M for demanding environments

• Ideal for demanding security areas
• Day and night surveillance
• Exceptional image detail

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The AXIS STS system
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The World CCTV Market in 2005 and 2010
2005 - 4,876.7 million
2010 - 8,145.5 million
Asia 32.9 CAGR 13.3
Asia 29.4
EMEA 30.0
EMEA 28.0 CAGR 9.3
Americas 39.1 CAGR 10.0
Americas 40.6
42 being camera value
Source IMS Research 2006
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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
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EMEA marketshares security cameras
Top Ten Companies
1 Bosch Security Systems
2 Panasonic (PSS
3 Axis
4 JVC
5 Pelco
6 Honeywell
7 Sony
8 Norbain (Vista
9 GE Security
10 Tyco Fire Security
Source IMS Research
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Growth of the global market
Growth 40
Growth 10
CCTV
Network Video
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Future outlook, Axis goals

• Focused product range
• Aggressive product development
• Intelligent solutions

• Focused business model
• Channel partnerships

Focused employees and focused company
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Questions Answers
Axis video sales 1996-2006