Ray Mauritsson

Axis Communications, pioneer in network video and surveillance solutions, will be participating at the World Expo 2020 taking place in Dubai, United Arab Emirates from 20 October 2020 to 10 April 2021. Axis is one of the official partners at the Swedish Pavilion based in the sustainability arena. Ray Mauritsson, President and CEO of Axis Communications, said: “We see this as an exciting opportunity and are proud to be one of the companies to represent Sweden. The theme for Expo 2020 is well aligned with our business and core values, as is the theme for the Swedish pavilion. Axis is an innovative, pioneering organisation where we work towards making smarter and safer societies, and we are looking forward to demonstrate this at the Expo.” Video, audio and access control solutions The theme of Expo 2020 is ‘Connecting Minds – Creating the Future’ and the exhibition includes three areas: Opportunity, Mobility and Sustainability. The Swedish pavilion will be focussing on Smart Cities, Next Generation Travel & Transport, Life Science, Circular Economy, Connected Industry and Smart Society. We will demonstrate state-of-the-art security solutions across video, audio, access control and a range of analytics"Philippe Kubbinga, Regional Director, Axis Communications Middle East & Africa, said: “At Axis, we are constantly challenging the status quo and encouraging innovation. Participating at the Expo 2020 as part of the Swedish Pavilion is another step in that direction. We will demonstrate state-of-the-art security solutions across video, audio, access control and a range of analytics such as people counting, traffic management and more. “We are proud of our participation as well as being the host country. We are confident that the Expo 2020 will open a new chapter in innovative possibilities for the UAE and the world and we are eagerly looking forward to that.” ‘Co-creation for Innovation’ theme The Swedish pavilion, which will be located in the Sustainability area, will be one of the single largest export promotion activities carried out by the Swedish Government in the coming years. The theme for the Swedish pavilion is ‘Co-creation for Innovation’. Besides participating in the exhibition by displaying Axis network solutions for improved security, Axis will be responsible for video surveillance as part of the security solution for the Swedish Pavilion.

Cognimatics’ products are well-known, with a successful track record in the retail sector Axis Communications has announced the acquisition of Cognimatics, a leading provider of store optimisation solutions targeting the retail sector. Cognimatics’ technology is used for people counting, queue measurement and occupancy estimation. The addition of Cognimatics’ knowledge and technology strengthens Axis’ solution offering in the fast-growing retail market segment. Complementing Axis solutions “Cognimatics’ products are well-known with a successful track record in the retail sector, and complement our solutions in that market. Their commitment to developing innovative and easy-to-use products is consistent with Axis’ approach to provide the highest value solution for a range of customer needs. We are excited to be able to offer our partners and end users solutions that act as a natural complement to their existing Axis solutions,” states Ray Mauritsson, CEO at Axis Communications. Video analytics applications Founded in 2003, Cognimatics is a privately owned Swedish company, headquartered in Lund, with 12 employees. The company offers a suite of video analytics applications that can be used to provide retailers with insightful behavioural intelligence that helps optimise their operations, improve customer experience, and enhance security and safety. Axis Communications and Cognimatics have cooperated for several years on both engineering and sales to provide integrated solutions to a number of mutual customers. Cognimatics serves customers in more than 70 countries via a global distributor and system integrator network.  

Citilog acquisition strengthens Axis’ offering in transportation segment and its opportunities in the growing market for traffic analytics The first quarter Net sales increased during the first quarter by 16 percent to SEK 1,567 M (1,354). Net sales increased by 13 percent in local currencies. Operating profit increased to SEK 153 M (145), which corresponds to an operating margin of 9.8 percent (10.7). Profit after tax amounted to SEK 114 M (104). Earnings per share amounted to SEK 1.64 (1.50). On February 1, Axis announced the acquisition of the French company Citilog, which is specialised in intelligent transport solutions. President's comments on Q1 “The first few months of 2016 were dominated by several releases of new products and solutions, and by the acquisition of the French transport and video analytics company Citilog. Both the acquisition and the product releases show how we are broadening our offering, which is important for our future performance and in order to capitalise on the opportunities available in the growing market. "For example, AXIS Site Designer Tool is a strategically important application that simplifies planning and design of video surveillance solutions. The continued advancement of our Zipstream technology, which lowers bandwidth and storage requirements, is also important as it can be applied in more and more camera models. "On February 1, we announced the acquisition of Citilog, which has specialist competence in intelligent video monitoring of traffic and transport. The acquisition strengthens both our offering in the transportation segment and our opportunities in the growing market for traffic analytics. We can now offer our customers an overall solution, which meets the strict demands of the traffic market. "Overall growth during the first quarter was in line with the expected development, but with some variation among the regions. We saw the best performance in EMEA, and particularly in Northern Europe and the Middle East. "We will also continue to develop and broaden our offering going forward. The market for network surveillance still has great potential. We have a clear ambition to strengthen our market leading position by developing our partner network, attracting skilled employees and releasing leading security solutions.” comments Ray Mauritsson, President, Axis Communications.

Citilog specialises in analytics tools & sensors for incident detection, traffic data collection & intersection control Axis Communications, the global leader in network video, announced the acquisition of Citilog, a provider of intelligent real-time video monitoring for traffic and transportation security and safety. The addition of their advanced surveillance technology and experienced personnel strengthens Axis’ best-of-breed solution and further expands its opportunities in the fast-growing traffic analytics market. Axis network video solutions integrated with Citilog traffic analytics “Citilog’s proven products are well known to the traffic sector, and complement our solutions for the most demanding requirements in that market. Their commitment to developing quality, innovative and easy-to-use products is consistent with Axis’ approach to provide the most competitive, highest value solution for a range of customer needs,” said Ray Mauritsson, CEO at Axis. “We are excited to be able to offer our channel partners and end users state-of-the-art analytics tools that work with their existing Axis network video solutions." Citilog video analytics tools and sensors Citilog is a privately held company with 30 employees, headquartered in Paris, France and with offices in the USA, Hong Kong and Spain. The company offers a suite of video analytics tools and sensors for transportation monitoring, such as automatic incident detection, traffic data collection and intersection control. Its products improve road safety, limit risks and help reduce travel time. Axis and Citilog have worked together for several years on both engineering and sales to provide integrated solutions to a number of mutual customers.  Enhancing traffic and transportation safety Citilog’s advanced video analytics and surveillance products are used to identify traffic incidents and deviations in real time to help traffic management centres improve the traffic flows and shortening response times. Further, Citilog offers solutions to analyse advanced traffic statistics and provide solutions for traffic lights and intersection control. Its products are used worldwide to monitor roadways, tunnels, bridges and other infrastructure, as well as city traffic operations. Alarms can be generated for numerous incidents and traffic saturation detection and enables traffic operators to redirect traffic and thereby adjust efficiency on the fly. 

 Middle East sales were strong, butmarkets in Asia, South America &Eastern Europe were challenging Details from the fourth quarter 2015 Net sales increased by 17 percent during the fourth quarter to SEK 1,758 M (1,504). Net sales increased by 7 percent in local currencies Operating profit increased to SEK 231 M (199), which corresponds to an operating margin of 13.1 percent (13.2) Profit after tax amounted to SEK 176 M (156) Earnings per share amounted to SEK 2.54 (2.24) The Board of Directors proposes that no dividend shall be distributed in respect of the 2015 fiscal year (SEK 0.31) Details from January – December 2015 Net sales increased by 22 percent during the period to SEK 6,635 M (5,450). Net sales increased by 5 percent in local currencies Operating profit increased to SEK 881 M (715), which corresponds to an operating margin of 13.3 percent (13.1) Profit after tax amounted to SEK 652 M (539) Earnings per share amounted to SEK 9.39 (7.76) A message from Axis President, Ray Mauritsson “Full-year sales increased by 22 percent. In several important regional markets, 2015 was a challenging year. Financial and political turbulence, particularly in large emerging markets in Asia, South America and Eastern Europe had a negative impact on sales. Meanwhile, a number of countries recovered in Southern Asia, and the Middle East continued to show a good performance. Foreign currency effects especially against USD had a positive impact on full-year sales. Sales increased by 17 percent during the quarter. Axis maintained a high rate of innovation. During the year, the offer was strengthened with new innovative network cameras and also through continued investments to take greater responsibility for the overall security solution. By taking greater responsibility for the overall system, we are further strengthening our position in relation to partners and end customers. During the year, Canon acquired about 85 percent of the shares in Axis. A strong and long-term principal owner gives us the potential to further strengthen Axis’ competitiveness through increased access to leading knowledge and technology. The process during the year developed in the way we initially communicated. Axis is continuing to operate as an independent company with a retained focus on strengthening its own operations and working towards clearly-defined targets. As we enter 2016, we see no reason to change our view on the underlying demand. Axis will continue to drive the trend and create new opportunities through partnerships and expansion. To succeed with this, we will continue to invest in innovation and dedicated employees, boost our presence in emerging markets and also improve organizational efficiency in line with our expansion.”

According to IHS report, Axis is still ranked as the clear market leader in network video in the Americas and EMEA regions The second quarter Net sales increased by 19 percent during the second quarter to SEK 1,616 M (1,355). Net sales decreased by 1 percent in local currencies. Operating profit amounted to SEK 117 M (188), which corresponds to an operating margin of 7.2 percent (13.8). Profit after tax amounted to SEK 83 M (139). Earnings per share amounted to SEK 1.19 (2.00). The first half-year Net sales increased by 20 percent during the period to SEK 2,971 M (2,484). Net sales increased by 0 percent in local currencies. Operating profit amounted to SEK 261 M (260), which corresponds to an operating margin of 8.8 percent (10.5). Profit after tax amounted to SEK 187 M (191). Earnings per share amounted to SEK 2.69 (2.75). Network video market leader in the Americas and EMEA regions “During the second quarter, sales amounted to SEK 1,616 M, an increase of 19 percent compared to the same period of the previous year. Sales were positively impacted by foreign currency effects, particularly from the US dollar. While a number of countries in Southeast Asia and parts of Europe performed well, we continued to see weak growth in several large markets, especially in Eastern Europe, South America and parts of Northern Asia. In May, the independent global information and analysis company IHS presented its yearly report on the video surveillance market. Network video is estimated to account for 67 percent of the global video surveillance market. 39 percent of all surveillance cameras sold today are network cameras. Axis is still ranked as the clear market leader in network video in the Americas and EMEA regions. IHS estimates that the global market for video surveillance will grow by 10 percent annually over the next five years. We continue to develop and strengthen our offering towards all market segments. During the quarter, we released an updated version of AXIS Camera Companion with enhanced functionality. A large number of new and innovative network cameras were introduced and we also broadened our offering with a door station featuring integrated video for identification and entry control. In early 2016, construction will begin on Axis’ new headquarters in Lund with space for 1,100 employees. We are continuing to build an organisation that will be able to meet the market opportunities. The recruitment rate is in line with our view of the prevailing market trend and 120 new employees were welcomed to the company during the first half-year”. said Ray Mauritsson, President, Axis Communications. The full report is available on: www.axis.com/global/en/about-axis/investor-relations/financial-reports

The building is expected to be ready in early 2018 and will accommodate 1,100 employees In early 2016, Axis will begin construction of a new headquarters located adjacent to the company’s existing offices in Lund, Sweden. The building is expected to be ready in early 2018 and will accommodate 1,100 employees. Together with principal owner Canon’s Chairman and CEO Fujio Mitarai, Axis Communications announced the expansion plan at a meeting recently with representatives from the municipality, university and the faculty of engineering. Long-term establishment in the dynamic growth region “Since its inception, Axis has been a company with its heart in Lund and through this investment we will strengthen our long-term establishment in this dynamic growth region. Proximity to the university and the faculty of engineering is natural for us as an innovative industry leader and therefore we are focusing on continued research and development in Lund and on advancing our local collaboration,” says Ray Mauritsson, President, Axis Communications. The nine-floor office building with a total area of almost 350,000 square feet will occupy an entire block at the Ideon Science Park and will accommodate many of Axis’ corporate functions. Research and development, which constitutes the largest part of the operations in Lund, will also remain in the existing main building on Emdalavägen. New visitor centre for demonstrations Apart from a mix of individual offices and open plan landscapes, the new building will house a restaurant and a café on the ground floor, a new visitor centre for demonstrations of Axis offerings and conference facilities. The new building will make a new contribution to Lund’s cityscape and hopefully will be strongly associated with Axis’ long history as an innovative growth company. The building will be environmentally certified according to an environmental and energy-optimisation standard with functions such as district heating and heat recovery. As a major employer in the region, Axis has enjoyed longstanding cooperation with the Faculty of Engineering and Lund University generally, offering 65 engineering students the chance to carry out thesis work at the company, among other ways. Over half of Axis’ more than 2,000 employees work in Lund. In 2014, Axis was named one of Sweden’s best workplaces in employee surveys conducted by Great Place to Work, as well as ranking #16 on the Small & Medium Workplaces List in the United States.

Report describes the progress in fields such as environmental impact & anti-corruption Axis Communications is publishing its sustainability report for 2014, with environmental considerations, business ethics and corporate social responsibility still in focus. The company’s sustainability report, the fifth in succession, describes the progress made in a number of fields such as environmental impact and anti-corruption. Great progress has also been made in the work on informing and auditing suppliers in order to ensure compliance with Axis’ Supplier Code of Conduct. The sustainability report was prepared according to the G4 global reporting standard. “Axis works proactively with sustainability questions on a long-term basis since a responsible attitude is an important success factor for our global business operations. I am proud of what we have achieved during 2014 – all from optimising our logistics flows to minimising our environmental impact as well as countering corruption in the value chain and working to create a safer and more secure world,” says Ray Mauritsson, President of Axis Communications. Axis aims to be a driving force behind development of innovative security solutions Axis aims to be a driving force behind the development of innovative security solutions, which help users in both the private and public sectors to meet today’s critical challenges, such as protecting people as well as important infrastructure, and urban problems such as traffic congestion. As a global company with employees in 49 countries and partners in 179 countries, Axis aims to be a leader in the security industry when it comes to corporate social responsibility and therefore takes a long-term responsibility for how the company’s operations affect employees, partners, suppliers, end users and other important target groups. "The latest report shows how our sustainability work has delivered positive results across the entire value chain" Axis’ ambition is to serve as a model for the industry in terms of sustainability “As market leader, Axis’ ambition is to serve as a model for the industry in terms of sustainability. The latest report shows how our sustainability work has delivered positive results across the entire value chain. I look forward to continue driving the work relating to Axis’ industry-leading measures such as our anti-corruption program,” says Mauritsson. Some important measures from the sustainability report for 2014: Axis’ comprehensive anti-corruption work has been intensified; all employees have participated in training and more than 100 of the company’s distributors have undertaken to comply with the company’s industry-leading policy of zero tolerance against corruption, bribes and conflicts of interests. 96 per cent of Axis’ suppliers that have an impact on the company in terms of the environment or sustainability have either been audited by Axis supplier inspectors or are certified to ensure that they follow Axis’ requirements relating to environmental considerations, the working environment and occupational safety. Axis has managed to cut the company’s carbon dioxide emissions by 13 per cent during 2014, primarily through its optimised logistics flows and reduced distances for transportation. Axis has continued to phase out PVC plastic from its products and 65 per cent of the company’s network cameras and video encoders are now PVC-free. During 2014, Axis’ employees participated in employee surveys conducted by Great Place to Work® in Sweden, USA and Germany and the company captured top positions in all countries. In order to raise environmental awareness among its suppliers, Axis held webinars through its training programme Axis Supplier Academy, where all suppliers were informed about Axis’ view of sustainability issues as well as rules and laws for material accounting. "I look forward to continue driving the work relating to Axis’ industry-leading measures such as our anti-corruption program" Axis has changed over to the new G4 reporting standard In this year’s report, Axis has changed over to the new G4 reporting standard, which is an update of the leading rules for sustainability reporting drawn up by the Global Reporting Initiative. As part of Axis’ transition to the new reporting standard, the company has initiated dialogue with key target groups and stakeholders, which have provided important insights that, can be used to continue improving the company’s long-term sustainability work.

Axis Communications continues to see a strong performance in several emerging markets Axis: Year-end report January-December 2014 The fourth quarter Net sales increased by 16 percent during the fourth quarter to SEK 1,504 M (1,299). Net sales increased by 7 percent in local currencies Operating profit amounted to SEK 199 M (166), which corresponds to an operating margin of 13.2 percent (12.8) Profit after tax amounted to SEK 156 M (117) Earnings per share amounted to SEK 2.24 (1.68) The board proposes a dividend of SEK 6.00, of which SEK 3.25 is an extra dividend (SEK 5.50 of which SEK 3.00 was an extra dividend. January - December Net sales increased by 16 percent during the period to SEK 5,450 M (4,717). Net sales increased by 12 percent in local currencies Operating profit increased to SEK 715 M (640), which corresponds to an operating margin of 13.1 percent (13.6) Profit after tax amounted to SEK 539 M (479) Earnings per share amounted to SEK 7.76 (6.89) President’s message “Sales for the full-year 2014 increased by 12 percent in local currency. The turbulence in Russia and Ukraine continues to have a negative impact on sales in the EMEA region. Meanwhile, we continue to see a strong performance in several emerging markets. During the quarter, we saw falling inventory levels among distributors in the US. During the year, our offering was strengthened with new innovative network cameras and we also made important investments directed towards the various market segments. By taking a greater responsibility for the overall system, we further strengthen our position in relation to partners and end-customers. In the quarter, the organisation grew by 74 new employees. For the full-year, the number of employees increased by 314 people. At year-end, the number of employees totaled 1,941. During the fourth quarter, one of Axis’ contract manufacturers was affected by a fire, which totally destroyed the production unit. Thanks to continually proactive work involving a number of subcontractors, the situation could be handled with a limited impact on sales.” Ray Mauritsson, President, Axis Communications.

Net sales increased by 19 percent during the first half-year The second quarter Net sales increased by 22 percent during the second quarter to SEK 1,355 M (1,114). Net sales increased by 20 percent in local currencies. Operating profit increased to SEK 188 M (127), which corresponds to an operating margin of 13.8 percent (11.4). Profit after tax amounted to SEK 139 M (96). Earnings per share amounted to SEK 2.00 (1.38). The first half-year Net sales increased by 19 percent during the period to SEK 2,484 M (2,096). Net sales increased by 18 percent in local currencies. Operating profit increased to SEK 260 M (216), which corresponds to an operating margin of 10.5 percent (10.3). Profit after tax amounted to SEK 191 M (162). Earnings per share amounted to SEK 2.75 (2.33). President’s message “Sales in the second quarter amounted to SEK 1,355 M. During the period, inventory levels increased at a number of distributors, particularly in the US. The EMEA region displayed a good performance with large variations between countries and continued turbulence in parts of Eastern Europe. Southern Asia recovered somewhat after a weak first quarter while Northern Asia showed stable growth. During the second quarter, we welcomed 76 new employees to the company and Axis now has 1,784 employees The two independent market research institutions IHS and TSR continued to rank Axis as the global market leader in network video in their yearly reports on the video surveillance market. We have continued to maintain a high rate of product releases and new recruitment. During the second quarter, we welcomed 76 new employees to the company and Axis now has 1,784 employees”. Ray Mauritsson, President The full report and slide presentation is available on: http://www.axis.com/corporate/investor/financial_reports.htm Invitation to telephone conference Time: Wednesday, July 9 at 10 a.m. Phone number: + 46 8-519 990 30 Participants from Axis AB will be: Ray Mauritsson, President, and Fredrik Sjöstrand, CFO. The presentation will be webcasted live at: http://financialhearings.nu/140709/axis/