Welcome to Axis Annual General Meeting 2003

1
Welcome toAxis Annual General Meeting 2003
2
7. Presidents message

• Ray Mauritsson

3
Increased profitability despite weak market

• Net sales for comparable units SEK 670 M (676)
• Operating profit for comparable units SEK 40 M
  (-83)
• Cash flow from operating activities amounted to
  SEK 7 M (-26)

4
Year 2002 in brief

• Profitability
• Cost control
• Improved gross margins
• Decreased sales within Print
• Continuous growth for Video

5
Sales development 1997-2002
Document
Video
97/98
98/99
99/00
2000
2001
2002
6
Intelligent Network Solutions
41
45
14

• Network Cameras
• Video Servers

7
Two offerings to the market
Axis business model
Platforms andCustomizedProducts 25
Products andSystemSolutions 75
8
Global Distribution and Sales
Axis
OEM
Nationaldistributor
Value addeddistributor
ResellerInstaller
End user
9
Geographical spreading of risks
Sales by region 2002
26
Asia
Europe, Middle East, Africa
47
27
North, South and Central America
10
Customer segments
11
A growing Video market

• Global market leader
• Significant growth potential
• Growing interest in surveillance and security
• Shift from analog to digital solutions
• New technical possibilities

12
Traditional analog camera surveillance
the total CCTV-market is estimated at 5 billion
USD
Source Frost Sullivan 2001
13
Digital video surveillance
so far, only 2-3 of the total market
14
Strategical agreements 2002

• Network surveillance solutions to Washington, DC
  Police
• Video surveillance of public transports in Italy
• Security solution to New Zealand penitentiary
• French bank increases security with network
  cameras

15
Converging markets
16
First quarter January - March 2003
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Financial Performance

• Net sales SEK 153 M (164)
• Currency effects impacted negatively SEK 18 M
• Operating profit SEK 0.6 M (11)

18
Q1 2003

• Continued growth for Video, 18
• Proactive market efforts
• Weak IT investments
• Generally restrained market

19
Sales mix Q1 2003
Sales by Product Group
Branded vs. OEM-sales
Access and other 2
Scan Store 6
Video
52
19
OEM
Branded
81
40
Print
20
Investing for the future

• Intensive RD agenda
• Estimated 15 - 20 reinvested in RD
• Video prioritized in 2003
• Several new products
• Proactive market efforts
• Focus on customer segments
• New partnerships

21
Outlook 2003

• Cautious market
• Signs of increased activity
• Strengthened positions and growth potential for
  Video
• Continued profitable development