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 organization 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


Invitation to telephone conference
Time: Friday, January 30 at 10 a.m.
Dial-in number: + 46 8 566 426 90
Participants from Axis AB will be: Ray Mauritsson, President, and Fredrik
Sjöstrand, CFO.
The presentation will be webcasted live at:
http://financialhearings.nu/150130/axis/ (http://financialhearings.nu/141016/axi
s 
/)
The full report and slide presentation is available on:
http://www.axis.com/corporate/investor/financial_reports.htm

For more information, please contact:
Johan Lundin, Manager, Investor Relations, Telephone: + 46 (0)46-272 18 00, E
-mail: IR@axis.com.

The information in this interim report is such that Axis is required to disclose
in accordance with the Securities Market Act. Submitted for publication at 08.00
a.m. (CET) on 30th of January 2015.

About Axis Communications
Axis offers intelligent security solutions that enable a smarter, safer world.
As the global market leader in network video, Axis is driving the industry by
continually launching innovative network products based on an open platform -
delivering high value to customers through a global partner network. Axis has
long-term relationships with partners and provides them with knowledge and
ground-breaking network products in existing and new markets.

Axis has more than 1,900 dedicated employees in more than 40 countries around
the world, supported by a network of over 75,000 partners across 179 countries.
Founded in 1984, Axis is a Sweden-based company listed on NASDAQ Stockholm under
the ticker AXIS. For more information about Axis, please visit our website
www.axis.com

Axis Communications AB, Address: Emdalavägen 14, 223 69 LUND, Sweden, Phone +46
46 272 18 00, Fax +46 46 13 61 30 www.axis.com