Interim report January – March 2015

The first quarter

  · Net sales increased by 20 percent during the first quarter to SEK 1,354 M
(1,129). Net sales increased by 2 percent in local currencies
  · Operating profit amounted to SEK 145 M (72), which corresponds to an
operating margin of 10.7 percent (6.4)
  · Profit after tax amounted to SEK 104 M (52)
  · Earnings per share amounted to SEK 1.50 (0.75)
  · On February 10, Canon made a public offer to Axis’ shareholders

President’s message
“During the first three months of the year, we were able to present a large
number of new solutions in various product categories. While Axis is continuing
to strengthen the offering with new innovative network cameras, we are also
continuing to broaden our product portfolio with complementary innovations and
advanced versions of our different software solutions directed towards small and
medium-sized installations. The recruitment rate remained high in early 2015 and
the number of employees increased by 78 persons.

The growth rate during the quarter was negatively impacted by a turbulent
macroeconomic situation in several of Axis’ markets. We are also continuing to
note low inventory levels at larger distributors. The fire at the Thai
production unit in November caused supply disruptions of certain products. This
had a more negative impact on sales during the quarter than we previously
estimated.

On February 10, Canon made a public offer to Axis’ shareholders of SEK 340 per
share. The acceptance period ran from March 3 to April 1. On April 8, Canon
announced that it completes the offer and that the acceptance period was being
extended until April 21. Further information about the offer is available on
Axis’ website.

We will continue to develop our offering. The market for network surveillance
still has great potential and Axis has a clear ambition to strengthen its market
-leading position by developing the partner network, attracting skilled
employees and releasing leading security solutions.”

Ray Mauritsson, President

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 16th of April 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