AXIS COMMUNICATIONS: Axis: Year-End Report January – December 2014

Regulatory News:

Axis Communications (STO:AXIS)

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/axis/)

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

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

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