Continued improved profitability

1
Continued improved profitability

• January September 2004
• Ray Mauritsson, CEO
• Fredrik Sjöstrand, CFO

2
Highlights

• Improved profitability
• Continued growth for Video, 31
• Broadened product portfolio

3
Financial performance Jan-Sep 2004

• Net sales SEK 492 M (460)
• Currency effects had a negative impact of SEK 28
  M
• Operating profit SEK 20 M (loss3)

4
Axis two main product areas

• Network Video Products
• Worldwide 1 position
• Axis largest product area, 68 of sales
• An installed base of more than 300,000 units

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

5
Financial performance Q3, 2004

• Net sales SEK 172 M (155)
• Currency effects had a negative impact of SEK 9 M
  
• Operating profit SEK 18 M (1)

6
Sales by quarter
MSEK

• Q3
• Continued strong growth in Video

Other
Video
2004
2003
7
EBIT by quarter

• Q3
• Positive Development
• Gross margin53.5 (51.1)
• Operating margin 10.2 (0.5)
• Profit margin10.8 (0.3)

8
Gross margin by quarter
9
Sales Q3, 2004
Sales by Product Group
Sales by Region
Other 9
Asia
19
23
48
Print
68
Video
EMEA
33
Americas
10
Business development

• New and developed partnerships (Videor Technical,
  Dvtel, Integral Technologies and Securitas)
• Axis delivers network video products to Mexicos
  largest electricity provider.
• Axis delivers new customized print servers to
  Canon

11
Outlook
Video sales 1998-2003

• Further product launches ahead
• Restrained development for Print
• Long term profitable growth