Axis AB: Year-end report 2017

Fourth quarter

• Net sales increased during the fourth quarter by 7 percent to SEK 2,204 M (2,059). Net sales increased by 13 percent in local currencies
•  Operating profit amounted to SEK 206 M (253), which corresponds to an operating margin of 9.3 percent (12.3).
• Earnings for the period amounted to SEK 132 M (169).
• Earnings per share amounted to SEK 1.90 (2.43).
• The board proposes that no dividend shall be declared for the 2017 fiscal year (SEK 0.92).

January - December

• Net sales increased during the period by 16 percent to SEK 8,603 M (7,386). Net sales increased by 15 percent in local currencies.
• Operating profit increased to SEK 1,014 M (885), which corresponds to an operating margin of 11.8 percent (12.0).
• Earnings for the period amounted to SEK 736 M (639).
• Earnings per share amounted to SEK 10.59 (9.20).

President’s comments

Continued growth during the quarter, and during the whole of 2017, generated record sales for the full-year. We recorded sales of SEK 2,204 M during the quarter, and of SEK 8,603 M for the full-year. Foreign currency effects only had a limited impact on sales and growth. During the year, the acquisitions made in 2016 performed well and are now making a strong contribution to our growth. Extended lead times on the general component market, as reported during the year, is expected to continue into 2018.

During the fourth quarter, for example, Axis could present the increased integration of 2N, due to the integration of 2N’s US-based employees into the Axis American sales organization.

Through the release of the first thermal cameras in AXIS P Line, Axis took a large step towards being able to offer the value that thermal cameras can deliver to a wider range of customers and to more fields of application than before.

Axis growth is also reflected through the increase in the number of employees. At year-end, we had almost 2,900 employees. The largest increase came from recruitments of personnel for the research & development and sales functions. In this context, it is worth mentioning that we strengthened our organization with a vice president for Europe, Middle East and Africa, who will be responsible for leading Axis’ expansion in these markets.

We also updated Axis long-term financial goals, which were last revised in 2004, so that they will be more aligned with the development of Axis and our market. Based on our current strategy, our ambition is to achieve annual sales growth of 15 percent with an operating margin that exceeds 10 percent. As we enter 2018, we have a strong basis to continue our profitable growth.

Ray Mauritsson
President

The full report can be found here.

This information is information that Axis AB is obliged to make public pursuant to the EU
Market Abuse Regulation and the Securities Markets Act. The information was submitted
for publication, through the agency of the contact person set out below, at 08.00 CET on
January 26, 2018.

For further information, please contact:

Björn Hallerborn, PR & Corporate Communications Manager
Mail: pressoffice@axis.com
Phone: 46 46 272 18 00

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 groundbreaking network products in existing and new markets. Axis has more than 2,700 dedicated employees in more than 50 countries around the world, supported by a network of over 90,000 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.

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