Axis AB: Interim report January-March 2016

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 specialized in intelligent transport solutions.

President’s message

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 capitalize 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 marketleading position by developing our partner
network, attracting skilled employees and releasing leading security
solutions.ort

Ray Mauritsson

President
For further information, please contact:

Björn Hallerborn, PR & Corporate Communications Manager, Axis Communications

Phone: 46 46 272 1800, E-mail: pressoffice@axis.com

Axis is required to publish the information contained in this press release in
accordance with the Swedish Securities Market Act. This information was provided
to the media for publication 08:00 a.m. CET on the 14th of April, 2016.
About Axis Communications

Axis offers intelligent security solutions that enable a smarter, safer world.
As the 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
2,100 dedicated employees in more than 50 countries around the world, supported
by a global network of over 80,000 partners. 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.