Axis releases year-end report for January to December 2015

The fourth quarter
Net sales increased by 17 percent during the fourth quarter to SEK 1,758 M (US$206.6 M). Net sales increased by:

• 7 percent in local currencies
• Operating profit increased to SEK 231 M ($27.1 M), which corresponds to an operating margin of 13.1 percent (13.2)
• Profit after tax amounted to SEK 176 M ($20.7 M)
• Earnings per share amounted to SEK 2.54 ($0.30)
• The Board of Directors proposes that no dividend shall be distributed in respect of the 2015 fiscal year (SEK 0.31)

January - December
Net sales increased by 22 percent during the period to SEK 6,635 M ($779.7 M). Net sales increased by 5 percent in local currencies:

• Operating profit increased to SEK 881 M ($103.5 M), which corresponds to an operating margin of 13.3 percent (13.1)
• Profit after tax amounted to SEK 652 M ($76.6 M)
• Earnings per share amounted to SEK 9.39 ($1.10)

President’s message
“Full-year sales increased by 22 percent. In several important regional markets, 2015 was a challenging year. Financial and political turbulence, particularly in large emerging markets in Asia, South America and Eastern Europe had a negative impact on sales. Meanwhile, a number of countries recovered in Southern Asia, and the Middle East continued to show a good performance. Foreign currency effects especially against USD had a positive impact on full-year sales. Sales increased by 17 percent during the quarter.

Axis maintained a high rate of innovation. During the year, the offer was strengthened with new innovative network cameras and also through continued investments to take greater responsibility for the overall security solution. By taking greater responsibility for the overall system, we are further strengthening our position in relation to partners and end customers.

During the year, Canon acquired about 85 percent of the shares in Axis. A strong and long-term principal owner gives us the potential to further strengthen Axis’ competitiveness through increased access to leading knowledge and technology. The process during the year developed in the way we initially communicated. Axis is continuing to operate as an independent company with a retained focus on strengthening its own operations and working towards clearly-defined targets.

As we enter 2016, we see no reason to change our view on the underlying demand. Axis will continue to drive the trend and create new opportunities through partnerships and expansion. To succeed with this, we will continue to invest in innovation and dedicated employees, boost our presence in emerging markets and also improve organizational efficiency in line with our expansion.”

Ray Mauritsson, President