Axis: Half-year report January – June 2015

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).

President’s message
“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 organization 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”.
Ray Mauritsson, President

The full report is available on:
http://www.axis.com/corporate/investor/financial_reports.htm

For more information, please contact:
Johan Lundin, Manager, Investor Relations, Telephone: + 46 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 9th of July 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 2,000 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 OMX 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