Improved Earnings

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Improved Earnings Growth within Video
Summary of 2004
Ray Mauritsson, CEO
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Agenda

• Summary 2004 and Axis today
• Video - growth and expanded product portfolio
• Trends and market development

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Two product areas

• Network video solutions
• World leader
• Axis largest product area
• More than 400,000 installed units

• Printer-servers
• Second on world market
• More than 3,000,000 installed units

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2004 in brief

• Improved profitability
• Growth within Video, 33
• Broadened product portfolio
• 8 new patents, total 41
• New partnership
• Awards

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Financial performance 2004

• Net sales SEK 691 M (624)
• Operating profit SEK 48 M (1)
• Profit before tax SEK 57 M (8)

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Q1,2005

• Total growth, 15
• Continued growth within Video, 35
• Continued development of product portfolio
• Partner with HID
• New sales office in Canada

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Financial performance, Q1 2005

• Net sales SEK 175 M (152)
• Operating profit SEK 14 M (-5)
• Profit before tax SEK 14 M (-5)

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Sales Q1, 2005
Asia 24
Video 75
EMEA46
Print 22
Other3
Americas 30
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New-generation video products

• New compression techniques
• Higher resolution
• Maximum image transfer speed
• Wireless access
• Power over Ethernet
• Network Dome and PTZ cameras

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Axis product portfolio, video
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Customer segments
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Customer case Turning Torso
Axis cameras create security in world- renowned
building
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Technology trends

• Smart cameras and integrated systems
• New technologies create increased possibilities
  in image quality and functionalityExamples
• Megapixel
• Increased scaling
• License plate identification
• Digital PTZ

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AXIS Image Enhancer - Example
In the fog outside Axis, Lund
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Integrated systems

• Develop industrys first open interface and
  protocol standard (API)
• Integrate video and passage control systems
• Meet demands of security market

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Technology shift is accelerating
Integration Open system Remote access
Wireless Megapixel Broadband
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Video Sales trend 1998-2004
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Outlook 2005

• Outlook 2005
• Continued cooperation with partners
• Further development of product portfolio
• Long-term goals (3-5 years)
• 20 average annual growth for Group
• 10 profitability
• Equity/assets ratio gt 50