Video growth in pace with the market January-September 2005

1
Video growth in pace with the marketJanuary-Sept
ember 2005
Ray Mauritsson, CEO
2
Axis two main product areas

• Network Video Solutions
• Worldwide 1 position
• Axis largest product area, 85 of sales
• Installed base of more than 500,000 units

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

Q3 2005
3
Highlights January-September

• Total growth 29
• Continued growth within Video 55
• Accelerating video market

4
Financial performance January-September

• Net sales SEK 636 MSEK (492)
• Operating profit SEK 96 MSEK (22)
• Profit before tax SEK 95 MSEK (21)

Note 2004 figures IFRS adjusted
5
Q3, 2005 Highlights

• Total growth 36
• Continued growth within Video
• Strong growth in Region Americas
• High activity in the network video market

6
Financial performance Q3, 2005

• Q3-2005
• Net sales 235 MSEK (172)
• Video growth 69

Other
Video
7
EBIT by quarter

• Q3-2005
• Gross margin54,9 (53,5 )
• Operating margin 17,3 (10,8 )
• Profit margin17,2 (10,6 )

Note 2004 figures IFRS adjusted
8
Sales Q3, 2005
Asia 16
Video 85
EMEA41
Print 13
Scan 1
Other1
Americas 43
Q3 2005
9
Size and growth of the global market
Growth 40
Growth 10
CCTV USD 5 billion
Network Video USD 221 million
10
Market estimates
11
Global distribution and sales
Axis
ADP
Distributors
System integrators
End user
12
Application Development Partner program

• Integrate Axis network cameras and video products
  in end-user solutions
• Increased numbers of ADPs, more than 260
• Honeywell, Tyco/American Dynamics, Lenel

13
Axis is driving network video
New applications (e.g. customer behavior)
Remote monitoring
Security applications
Axis is an IT company driving the network video
market
Axis is an IT company driving network video in
14
Retail a growing customer segment

• Customer segment Retail is 25 of the total CCTV
  market.
• Growth rate in retail is expected to increase due
  to new applications for video content analysis
• People counting, protection of buildings and
  employees, protect burglary, cuts drive offs
  etc

15
Retail applications
Reports are created based on number of stops at a
region of interest

• With intelligent Video
• People counting
• Reports on traffic volume, hourly trends, etc.
• Staff management

16
Axis product portfolio
Fixed Cameras
Video Servers
Axis Video Management System ADP Solutions
Network Domes PTZ Cameras
17
Outlook

• Proceed the development of partnerships
• Product launches
• Continued strong video growth, keeping market
  shares
• Strengthen the world wide organisation