AXIS Communications A world of intelligent networks Financial year 8 months May December 2000

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AXIS CommunicationsA world of intelligent
networksFinancial year (8 months) May -
December 2000

• Presented by Peter Ragnarsson

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Axis Group

• Founded 1984
• Listed on Stockholm stock exchange 2000

Axis AB
Netch 59(incl new issue 2001)

• Connectivity forpersonalcommunicationdevices
• Mobile Internet

• Connectivity forperipheral units
• Printservers
• Scan servers
• CDservers
• Camera servers
• Technology

nBand 11
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Axis history - four distinct phases
IP connectivityGlobally
4th phase
ThinServersUSA
3rd phase
Print serversAsia
2nd phase
IBM protocol conversion Europe
1st phase
1984
1992
1996
2000
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Highlights - 8 month period

• Revenues 494 Mkr (481)
• ThinServer products
• Document Storage businesses re-structured
• Camera 184 growth
• Profitability
• Netch EBIT loss -57 Mkr
• re-structuring finished in q1-2001

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Highlights - 8 month period

• Expansion as planned
• Build-up of complete Mobile Internet Division
• Total Mobile Internet investment costs 67 Mkr
  during May-Dec 2000
• New technology platform, incl wireless
  technologies
• Strategic partnerships
• Total RD 133 Mkr (92)
• EBIT excl Netch -108 Mkr (-2)
• EBIT incl Netch -165 Mkr (-8)

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Revenue mix December 2000 (8 months)
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Revenues for 8-month period
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EBIT 8 month period

• Profitability in ThinServer area
• Investment peak in Mobile Internet
• 26 Mkr in Nov-Dec 2000
• Loss in Netch 27 Mkr
• whereof structural 10 Mkr

2 months
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EBIT for 8-month period
10
Balance sheet - assets
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Balance sheet - liabilities equity
12
Change in liquid funds
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ThinServer products

• Document
• Global top 3 on network print solutions
• Camera
• Leader in network camera and video servers
• Storage
• Global n1 market leader for CD/DVD servers
• Technology
• network solution platforms

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ThinServer market

• IDC predicts sales of ThinServers at more than
  11 billion by 2004

Source IDC
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ThinServer products - revenues

• Camera growth 184
• Document OEM growth 33
• Document Storage re-structured for appropriate
  focus
• Networked Office
• OEM

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ThinServer products - EBIT

• Profitability in focus
• Investment level reduced significantly

2 months
17
Mobile Internet

• Carrier class total system solutions for local
  mobile networks based on Bluetoothand WLAN
  (802.11)
• Mobile Internet Server
• Subscriber management
• Security
• Positioning
• Network management
• I/f to billing customer care systems
• Initial order from Canon on Axis 9010 Bluetooth
  Access Points

18
Mobile Internet

• Mobile Internet Division founded
• Complete solutions for local wireless networks
• Intensive RD (67 Mkr)
• Test units delivered

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Mobile Internet products - EBIT

• Investment peak during Nov-Dec 2000
• Investment level declining during 2001

2 months
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Netch

• Netch is a supplier of strategic internet
  services
• Axis holds 59 of Netch after the new issue (57,6
  Mkr) in February 2001
• Peter Ragnarsson Chairman of the Board in Netch
  from Dec. 2000

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Netch - EBIT

• Re-structuring program
• Re-structuring costs
• q4 2000 10 Mkr
• q1 2001 30 Mkr (est)
• Focus on reaching profitability in 2001

2 months
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Market trends 2001

• Stable and profitable base in Document Storage
• Growth in OEM segment
• Strong growth potential in Camera
• Market potential for local wireless networks

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Outlook 2001

• Focus on profitability
• Normalization of investment level
• Re-structuring of Netch
• Long-term financial goals remains unchanged

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Axis 2001

• Global presence
• 4th major investment phase completed
• Industry insider
• Profitable base business
• Netch re-structured
• Proven track record

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Axis financial goals

• Equity ratio normally not less than 50
• Average annual sales growth of 30 in the five
  years following the IPO
• Pre-tax margin of 10-15 achieved within three
  years from the IPO