Video growth despite negative currency effects

1
Video growth despite negative currency effects

• Year-end summary 2003
• Ray Mauritsson, CEO

2
Agenda

• 2003 summary and Axis today
• Network video growth in security
• Technology trends and outlook

3
Axis two main product areas

• Network Video Products
• Worldwide 1 position
• Axis largest product area, 57 of sales
• An installed base of more than 300,000 units

• Network Print Servers
• Worldwide 2 position
• 35 of Axis sales
• An installed base of more than 2,000,000 units

4
Financial performance 2003

• Net sales SEK 624 M (670)
• Currency effects had a negative impact of SEK 71
  M
• Operating profit SEK 1 M (40)

5
Financial highlights 2003

• Growth for Video
• Decreased sales within Print
• Currency effects
• Weakened gross margin
• Cost-savings program
• 14 new patents

6
Video sales development 1998-2003
7
Gross margin 2002-2003
8
Q1 2004

• Continued growth within Video, 23
• Weakened sales for Print
• New generation video products launched

9
Sales Q1, 2004
Access and other 5
Scan Store 3
Asia
23
Print
64
28
Video
51
EMEA
26
Americas
10
Market size forecast

• Axis market share in EMEA today
• Network cameras 59.8
• Video servers 35.4

11
Year 2003 Success cases in all verticals
Surveillance Solution at Dutch School
Surveillance Solution at Dutch School
Remote Monitoring Solution to New York State
Unified Court System
Remote Monitoring Solution to New York State
Unified Court System
Car park security in Japan
Car park security in Japan
Network Video improves patient care, Visicu,US
Network Video improves patient care, Visicu,US
Childcare Cam at Singaporian daycare center
Childcare Cam at Singaporian daycare center
Security in Italian Retail stores
Security in Italian Retail stores
Car park security in Germany
Car park security in Germany
Surveillance in Newport School,UK
Surveillance in Newport School,UK
IP based security in Texas school district, US
IP based security in Texas school district, US
Increased safety at Guernesey College, UK
Increased safety at Guernesey College, UK
Security at Sydney Airport
Security at Sydney Airport
Safety for Danish bank
Safety for Danish bank
Security cams at 70 bank offices in France
Security cams at 70 bank offices in France
Cameras help UK police cut crime
Cameras help UK police cut crime
Axisnetwork products for U.S federal prison
Axisnetwork products for U.S federal prison
Swedish monitoring concept in shops
Swedish monitoring concept in shops
Security solution to New Zealand penitentiary
Security solution to New Zealand penitentiary
Missouri school district implements Network
Video
Missouri school district implements Network
Video
Advanced network surveillance solutions to
Washington, DC Police
Advanced network surveillance solutions to
Washington, DC Police
12
Customer segments
13
Benefits of network video

• Remote access to video from any location
• Low start-up and operating costs
• Flexible and scalable solutions based on open
  standards
• Integration possibilities
• A technology shift driving growth

14
Axis compared with the competition

• Dedicated to IP solutions
• Global coverage
• Widest range
• Own technology
• Over 150 ADP partners

15
Axis competitive advantage

• Own ASIC and compression chip
• Performance, image quality and lower cost
• ETRAX and ARTPEC
• Experience
• 9 years of imaging experience
• 20 years of networking experience
• Only open standards

16
Trends - Technology

• Smart cameras and integrated systems
• New technology is opening up possibilities in
  image quality and functionalitiesExamples
• Megapixel
• Pictures scalable to any format
• License plate recognition
• Digital PTZ

17
New generation video products

• Aggressive road map
• New compression techniques
• Higher resolution
• Full frame rate
• Built-in wireless solution
• Power over Ethernet
• Dome cameras

18
The future of network video

• Accelerating technology shift
• Unlimited possibilities in addition to security
  solutions
• New applications

19
Visicu eIC
20
Strategic direction

• Maximize the video opportunity
• Protect the printing business
• Nurture new ideas for future growth

21
Outlook 2004

• Continued growth potential for Video
• Accelerating technology shift
• An aggressive product road map
• Restrained development for Print
• Well positioned for profitable growth