2002agmslide eng

							       AXIS Communications
- a world of intelligent networks

Annual General Meeting 2002
        President´s message
Annual General Meeting 2002
              Peter Ragnarsson
Axis 2001




   Profitability and positive cash flow
   achieved as planned in the second
   half of 2001
Year 2001


       Weak market conditions
       Strong impact on IT and telecom
        industries
         ¬ Negative growth
         ¬ Big losses
         ¬ Big changes in valuations
Axis 2001 in short...
Pro forma 2000
                           Mkr      Operating results
                            50
   Foundation set for                                99/00 2000 2001
                             0
    continued profitable          96/97 97/98 98/99                     Q1 -02

    growth                  -50
   Operating profit
                           -100
    achieved in the
    second half of 2001    -150
   Q1 2002 shows
                           -200
    continued positive
    development            -250
Factors contributing to profitability


         Sales increased by approx. 5%
          including currency effects
         Improved gross margins
         Reduced costs
         Restructuring measures
Core offerings


    World class solutions
     for easy-to-use,
     secure and efficient
     communication over
     networks
Axis´ offerings
           NetworkCamera
           & Video Server
            Worldwide   #1

                               Network   Printing
                                Worldwide    #2


                                                Network
                                                 Wireless
        Network
                                                 Access
        Scan & Store


                    Axis ThinServer
                      Technology
A global player - 95% exported…
Sales by region


                  Asia

                     23%         EMEA
                           46%
                     31%
        Americas
Axis´ market segments



        Branded

   Networked   Networked       OEM
     Office     Facility


                   Growing use of networks
                       in new environments
Business model – spreading risk

                                Axis

        National            Value added
       distributor           distributor   OEM


                     Reseller


                           End user
A global distribution network

      Distributor partnerships
        ¬ Between 500 and 1,000
          worldwide
      Reseller & Integrators
       partnerships
        ¬ Between 50,000 and
          100,000 worldwide
A growing customer base

    Some of our distributors and
    OEM partners
        Ingram Micro      EET Nordic
        Azlan             Canon
        Adimpo            SONY
        MicroP            Honeywell
        Allnet            Securitas
        Fibrenetix        Minolta - QMS
        NSM Storage       Panasonic
Investing for the future

             Intensive R&D agenda
               ¬ Approx. 22 % of sales is
                 reinvested in R&D
               ¬ Support for new protocols
               ¬ Increased functionality
               ¬ New applications
               ¬ Wireless communication
             Seven new patents during 2001
    First Quarter
January - March 2002
First Quarter 2002




Stable foundation for profitable growth
Financial performance

       Profitability and Positive
       Cash Flow…
        Operating profit improved by
         SEK 43 M (comparable units)
        Third consecutive quarter with
         positive EBIT
        Increased operational efficiency
        Reduced capital tied up in
         operations
 Sales Q1 2002

        Sales by                          Branded vs.
     Product Group                        OEM sales

Access 1%    Other 8%
Scan 2%
Store 5%
                  41%   Video
                                Branded    75%   25%    OEM
  Print     43%
EBIT by Quarter
Pro forma 2000
                            Mkr
                            10
                                    EBIT    Structural
                             0
 R&D overall
  ¬ 31 MSEK in Q1           -10

                            -20
   Operating margin 6.5%
                            -30
   Profit margin 8.3%
                            -40

                            -50

                            -60

                            -70

                            -80
                                  Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
                                     2000           2001   -02
Sales per Quarter
Ongoing operations, MSEK

                250
                           2000        2001    2002
                200


                150


                100


                50


                 0
                      Q1          Q2      Q3     Q4
Liquid funds
MSEK

        200

        175

        150

        125

        100

         75

         50

         25

          0
              Q3-00 Q4-00 Q1-01 Q2-01 Q3-01 Q4-01 Q1-02
Market trends


        Generally weak market
         conditions expected to remain
         at least until mid-2002
        Slightly increased activity in
         markets
Outlook 2002


        Continuous profitability and
         positive operational cash flow
        On track for a stronger position
         and profitable growth