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INVEST INVESTOR OR PRESE PRESENT NTATION TION | A X O N E N T E R P R I S E | D e c e m b e r 2 0 1 9 Safe-harbor statement Statements made during todays presentation will include forward -looking statements, including statements

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SLIDE 1

INVEST INVESTOR OR PRESE PRESENT NTATION TION

| A X O N E N T E R P R I S E |

D e c e m b e r 2 0 1 9

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SLIDE 2

Safe-harbor statement

Statements made during today’s presentation will include forward-looking statements, including statements regarding our expectations, beliefs, intentions or strategies regarding the future, including statements around projected spending. We intend that such forward-looking statements be subject to the safe-harbor provided by the Private Securities Litigation Reform Act of 1995. The forward-looking information is based upon current information and expectations regarding Axon Enterprise, Inc. These estimates and statements speak only as of the date on which they are made, are not guarantees of future performance, and involve certain risks, uncertainties and assumptions that are difficult to predict. All forward-looking statements that are made on today’s call are subject to risks and uncertainties that could cause our actual results to differ materially. These risks are discussed in greater detail in our Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q under the caption “Risk Factors.” You may find these filings, as well as our other SEC filings, on our website at www.axon.com or at www.sec.gov.

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SLIDE 3

THE THE AX AXON ON GR GROWTH WTH ST STOR ORY

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SLIDE 4

On-officer body cameras & TASER connected-devices . . . . . . backed by SaaS: Evidence.com

AX AXON IS SOL ON IS SOLVING VING REALL REALLY BIG PR Y BIG PROBLEMS OBLEMS

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SLIDE 5
  • 2. REDUCE SOCIAL

CONFLICT

COMPLAINTS DOWN 88%2 USE OF FORCE DOWN 42%2

  • 3. ENABLE A FAIR &

EFFECTIVE JUSTICE SYSTEM

GUILTY PLEAS UP 20%3 OFFICER COURT TIME REDUCED BY 70%4 ~200,000 LIVES SAVED FROM DEATH OR SERIOUS INJURY1

OUR MISSION

  • 1. OBSOLETE THE

BULLET

1 M.W. Kroll Study (2009) 2 Mesa On-Officer Body Camera Field Study (2014) 3 Newport News Case Study (2015). 4 Queensland Police Domestic Violence Case Study (2017)
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SLIDE 6

Axon at a glance

6

600K+

TASER weapons in place today globally

47 of 69

largest US metros use Axon camera solution

$142mm+

annual recurring software revenue

100+

patents

15%

2018 Adjusted EBITDA margin Note: TASER weapons in place today globally represents total number of units sold in the last 5 years. Annual recurring revenue is as of Axon’s latest quarterly report.

429K

Evidence.com licenses booked $203 $235 $253 $36 $51 $75 $30 $58 $92 2016 2017 2018

Revenue ($ millions)

TASER Sensors & Other Axon Cloud

$268

$420

$344

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SLIDE 7

TWO KEY DIFFERENTIATORS

FOUR STRATEGIC GROWTH AREAS

7

supported by

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SLIDE 8 Expand Axon body camera and Evidence.com market share and increase average revenue per user ("ARPU"):
  • Axon has direct relationships with most US agencies
  • 17,000 out of 18,000 US police agencies procure TASER devices
  • The top 1,200 agencies house ~65% of sworn officers
  • Patrol officers have a connection to Axon’s product and brand
  • The TASER device revolutionized policing
  • About ~660,000 officers are on patrol
  • We estimate ~70% of US patrol officers carry a TASER device
8

Differentiator #1: TASER success drives customer access

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SLIDE 9 Expand Axon body camera and Evidence.com market share and increase average revenue per user ("ARPU"):
  • Axon leveraged its deep agency relationships and TASER’s strength to establish the market

lead in body cameras & software

  • We invested in software early on and developed a highly scalable solution
  • Axon hosts petabytes of public safety video data in our secure cloud
  • Customers authorize Axon to use their data to train AI models
  • US: Strong foothold established
  • Building large international footholds
  • The London Metropolitan Police Service: One of the largest municipal police forces in the

world, joined the Axon network in 2015

  • Swedish Police Authority: First European nationalized police force joined the Axon network

in 2019

9

Differentiator #2: Axon leads in body cameras and data

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SLIDE 10

47 7 3 2 10

Axon’s body camera solution is simply the best

10

Open

US Major City Chiefs Agencies by vendor

The information contained in this slide is representative of MCC agencies only and does not represent the much broader market of cameras for surveillance, vehicles, interview rooms, and personal use, nor the market represented by other public safety agencies.
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SLIDE 11

Serving the top tier (Major City Chiefs)

New York City, New York Baltimore, Maryland Oklahoma City, Oklahoma Chicago, Illinois Charlotte-Mecklenburg, North Carolina Cincinnati, Ohio Los Angeles County, California Atlanta, Georgia El Paso, Texas Los Angeles, California Indianapolis, Indiana Tucson, Arizona Philadelphia, Pennsylvania Cleveland, Ohio Buffalo, New York Houston, Texas Fairfax County, Virginia Tampa, Florida Washington D.C. Prince George’s Co, Maryland Portland, Oregon Detroit, Michigan Fort Worth, Texas Minneapolis, Minnesota Las Vegas, Nevada Kansas City, Missouri DeKalb County, Georgia Dallas, Texas Denver, Colorado Long Beach, California Baltimore County, Maryland Jacksonville, Florida Albuquerque, New Mexico Phoenix, Arizona Nashville, Tennessee Mesa, Arizona Nassau County, New York San Jose, California Fresno, California Miami-Dade, Florida
  • St. Louis, Missouri
Virginia Beach, Virginia Suffolk County, New York New Orleans. Louisiana Omaha, Nebraska Memphis, Tennessee Tulsa, Oklahoma Orlando, Florida San Francisco, California Newark, New Jersey Raleigh, North Carolina Milwaukee, Wisconsin
  • Louisville. Kentucky
Wichita, Kansas Honolulu, Hawaii Seattle, Washington Sacramento, California San Antonio, Texas Montgomery County, Maryland Aurora, Colorado Boston, Massachusetts Miami, Florida Arlington, Texas Columbus, Ohio Austin, Texas Oakland, California San Diego, California Pittsburgh, Pennsylvania Salt Lake City, Utah Axon network Competitor No cameras 11
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SLIDE 12

TASER

12

Four strategic growth drivers

Sensors and digital evidence management Records management systems Computer-aided dispatch software (mid-2020)

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SLIDE 13 13 Time

Officer leaves Officer

  • n scene

Justice system

Axon participates today

911 Call & Dispatch Citizen- captured evidence Write & file incident report

Axon solutions emerging

Shorten More efficient

The role of Axon’s four strategic growth areas during a police incident

Axon software makes it easy to capture digital evidence, including CCTV video & citizen mobile evidence Axon’s dispatch solution will enable an

  • fficer to arrive on

scene knowing the most relevant and critical information. A TASER device may

  • r may not be

deployed when responding to an

  • incident. If deployed,

all use of force data is logged in Evidence.com. Axon body cameras and Fleet cameras capture video evidence, which is safely stored in Evidence.com. Live- streaming provides real- time situational awareness. Axon Records incorporates video into the incident log and will use AI to save

  • fficers time. Began

shipping September 2019. Incident data, and post- arrest interview video, are used & viewed by prosecutors, defense attorneys, media, the community and the public.

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SLIDE 14 14

Axon Products Video

https://vimeo.com/333871354

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SLIDE 15 15

Four strategic growth drivers

TASER Sensors and digital evidence management Records management systems (2H 2019) Computer-aided dispatch software (mid-2020)

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SLIDE 16 16

TECHNOLOGY

  • Over 100 patents

MEDICAL RESEARCH ON SAFETY

  • 800 published, peer-reviewed scientific and

medical studies demonstrating the safety and efficacy of TASER CEWs BODY OF CASE LAW

  • Tested by multiple judges, multiple jury trials,

multiple municipalities

  • Successful in over 99% of cases filed

Strategic growth area #1: TASER’s competitive moat

CUSTOMER RELATIONSHIPS

  • Strong presence at police agencies
  • New upstarts inherently distrusted

INTEGRATED OFFERING

  • Bundled pricing
  • Officer Safety Plan
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SLIDE 17 17

Strategic growth area #1: TASER’s powerful results

$90mm $109mm $128mm $146mm $162mm $203mm $235mm $253mm 2011 2012 2013 2014 2015 2016 2017 2018

  • ~70% Legacy gross margins
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SLIDE 18 18

ALL NEW

TASER 7 STARTED SHIPPING DECEMBER 2018

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SLIDE 19 19

TASER 7 VIDEO

https://vimeo.com/289980293

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SLIDE 20 20

Four strategic growth drivers

TASER Sensors and digital evidence management Records management systems (2H 2019) Computer-aided dispatch software (mid-2020)

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SLIDE 21

Strategic growth area #2: Sensors & DEMS

21

FLEX SIGNAL SIDEARM BODY FLEET APPS

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SLIDE 22

Body camera programs address a transparency and accountability

  • problem. They create a giant data management and storage problem.

Axon’s camera + software solution solves both...

Capture Transfer Manage & Store Retrieve Share & Redact

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SLIDE 23 23

At the end of a shift, the patrol officer docks the camera at the precinct and walks away. An Internet-connected dock uploads all of the data to Axon’s secure cloud storage and recharges the battery. When the camera blinks green, it is ready to go back out on patrol. The Axon solution scales well, saves time and makes video simple to manage.

Shared with permission from the Bensalem Township Police Department.
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SLIDE 24 24

Axon Evidence makes body camera programs feasible, affordable, and therefore, possible.

“I no longer … need an additional attorney to help with the workload increase. This tool has completely changed my staffing recommendations, and consequently, will save our city a significant amount of money. I am very impressed with the product.“

Tami A. Perdue Chief Prosecutor for the City of Kent speaking specifically about Axon Redaction Assistant, an AI-powered redaction tool

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SLIDE 25

Axon rarely loses a major city. When we do, here is why…

An agency adamantly believes in on-prem data hosting The customer prioritizes price above all else

  • Such agencies reject all cloud-based solutions
25

Note: Axon is investing in on-prem solutions to build out our category of product offerings

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SLIDE 26

All new

Axon Body 3

with LTE-live streaming

Began shipping September 2019

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SLIDE 27 27

Four strategic growth drivers

TASER Sensors and digital evidence management Records management systems Computer-aided dispatch software (mid-2020)

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SLIDE 28

“ The left side is for the paper records we still use. The right side is for the paper we print out as a backup to our system ”

  • RECORDS DEPARTMENT LEADER
28

WHAT WE SEE

IN RECORDS DEPARTMENTS

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SLIDE 29

Identify market adjacencies Build integrated solutions Land and expand

Body-worn cameras

Announced in 2008 First shipments 2009 47 major American cities & growing overseas presence

Axon Fleet

Announced in 2015 First shipments 2017 Vying for market leadership

Axon Records

Announced in 2016 First shipments 2019

OSP 7

Axon Records: Executing on a proven strategy

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SLIDE 30 30

Four strategic growth drivers

TASER Sensors and digital evidence management Records management systems (2H 2019) Computer-aided dispatch software (mid-2020)

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SLIDE 31

Today, products are sold and marketed disparately.

31 TASER DEVICES EVIDENCE RMS DISPATCH

But a patrol officer’s daily workflow uses many systems. Axon will connect systems and automate data entry. Efficiency: A measure of time saved

Short term value proposition: More efficient officers

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SLIDE 32

Long term value proposition: More effective police work

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TASER DEVICES AXON Effectiveness: Better, timelier information & safer communities The one Axon revolution: Seamless connectivity

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SLIDE 33

FINANCIAL STRATEGY

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SLIDE 34

Pillars of Axon financial strategy

Shift to recurring cash flows

1

Invest in products & features that expand our TAM Drive profitability through disciplined execution

2 3

34
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SLIDE 35

SHIFT TO RECURRING CASH FLOWS

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SLIDE 36 74,800 95,000 110,600 132,000 148,400 169,000 187,400 201,500 226,900 305,200 325,200 347,200 371,100 397,800 428,600 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19

Axon Cloud Users Booked

SaaS metrics: Tracking Axon Cloud adoption

36 Includes recurring license, integration, warranty and storage revenue Vievu acquisition $18 $21 $32 $40 $46 $55 $64 $70 $83 $93 $102 $108 $122 $129 $142 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19

Annual Recurring Revenue

($millions)
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SLIDE 37 37

Growing % of revenue is tied to bundled, recurring contracts

$177 mm 66% $91 mm 34%

FY’16

Total Revenue - $268 mm 34% from recurring contracts $187 mm 54% $157 mm 46%

FY’17

Total Revenue - $344 mm 46% from recurring contracts $188 mm 45% $232 mm 55%

FY’18

Total Revenue- $420 mm 55% from recurring contracts

2016 2017 2018 TASER Software & Sensors Total (TASER + S&S) 17% ($35 mm) 23% ($54 mm) 29% ($73 mm) 86% ($56 mm) 94% ($103 mm) 95% ($159 mm) 34% ($91 mm) 46% ($157 mm) 55% ($232 mm)

The percent of revenue tied to bundled, recurring contracts is disclosed in Axon’s 10-K filings as revenue tied to multiple performance obligations. Note that the percentage of revenue that is tied to recurring contracts is not the same as the percentage of revenue that is annually recurring, given that our multi-year contract bundles recognize hardware revenues on shipment, as dictated by GAAP. Body-camera hardware revenue recurs every ~2.5 years and TASER hardware revenue recurs every ~5 years.
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SLIDE 38

EXPAND OUR TAM

38
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SLIDE 39 Potential users in thousands (000’s) and Annual TAM in millions ($mm). Sources: U.S. Department of Justice (2017), Department of Homeland Security (2017), Bureau of Justice Statistics (2003, 2015, 2016), Bureau of Labor Statistics (2016, 2017), Federal Jobs (2015), National Fire Protection Association (2017), Australian Institute of Criminology (2006), New Zealand Police Association (2016), Statistics Canada (2018), Eurostat (2015), Company estimates. Note: TAM Weapons, Fleet, Body Camera Software and Sensors market size based on 2018 pricing; Analytics includes add-ons that are soon to be available, including Redaction Assistant, Axon Performance, Axon Auto Tagging, and Axon Aware+ (LTE), and items under development, including transcription and automated report writing. Overall RMS and CAD market size is an estimate based on disruption of existing RMS/CAD pricing contracts and management estimates.

$8.4 billion

TASER TAM build- up $/ mo Users Annual TAM Domest ic Weapons, Cart ridges & Services $60 662 $477 Int 'l Weapons, Cart ridges & Services $60 1 ,824 $1 ,31 3 $1 ,790 Axon Cloud TAM build- up $/ mo Users Annual TAM Axon Records & Axon Dispat ch $1 0 0 2,1 0 3 $2,524 Advanced Int elligence & Analyt ic Add- Ons $1 0 0 1 ,0 76 $1 ,291 Domest ic Body Camera Soft ware $63 1 ,0 76 $81 3 Int 'l Body Camera Soft ware $63 1 ,0 0 0 $756 Axon Fleet (domest ic only) $77 40 0 $370 $5,754 Sensors TAM build- up $/ mo Users Annual TAM Domest ic Officer Worn Sensors $30 662 $238 Int 'l Officer Worn Sensors $30 1 ,0 0 0 $360 Axon Fleet (domest ic only) $52 40 0 $250 $848

Driving the TAM through value-added features

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SLIDE 40

?

What grows the TAM?

40

Expand into international markets with Axon Fleet, Axon Records and Axon Dispatch Capture adjacent markets: Military & Federal, Prisons & Corrections, Fire & EMS, Commercial Enterprise Delta team innovation: Tiny teams focused on taking an idea from 0 to 1

? ?

TASER consumer Axon Air

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SLIDE 41

DRIVE PROFITABILITY

41
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SLIDE 42

Compelling long-term target model

42

Sustaining R&D

Product development Commitment to drive leverage

Growth R&D

TASER EVIDENCE.COM BODY-WORN CAMERAS AXON RECORDS AXON DISPATCH AXON FLEET AXON CLOUD

TASER Software & Sensors

Note: Long-term targets exclude share-based compensation

69%

2017 Gross Margin

41%

2017 Gross Margin

70% 70%

Long-term target model Long-term target model

68%

2018 Gross Margin

51%

2018 Gross Margin

Axon consolidated

2017 Adj EBITDA Margin 2018 Adj EBITDA Margin Long-term target model

12% 15% 30%

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SLIDE 43 $1,560 $2,160 $2,400 $3,600 $6,233 $7,740 $7,288 $9,826 $12,826 60% 70% 80% 90% $- $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 TASER X2 Basic ($26/mo) TASER X2 Unlimited ($36/mo) TASER 7 Basic ($40/mo) TASER 7 Certification ($60/mo) Body-Worn Camera Unlimited Storage ($89/mo) Axon Fleet Unlimited ($129/mo) Legacy Officer Safety Plan ($109/mo) OSP 7 ($149/mo) OSP 7+ ($199/mo)

Projected revenue & gross margin by bundle Per officer over the five-year contract life

Revenue $ Gross Profit $ Gross Margin % Total Company Target Gross Margin 70% Axon bundle monthly pricing assumes five years, or 60 months, per contract. Revenue shown includes any initial hardware purchase required, which may not be included in the monthly fee. Bundle gross margins exclude unallocated manufacturing overhead. Future hardware upgrades assume a 15% increase in bill of materials cost over current generation hardware. Actual total company gross margins may be lower than target due to sales discounts, trade-in credits, lower margin professional services revenue, third- party hardware sold as a pass-through, unallocated manufacturing overhead, customer purchases of lower-tier offerings that are not pictured, and costs related to hardware returns.
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SLIDE 44

2019 full year outlook

For the full year ending December 31, 2019, we expect1 to achieve:

2019

Revenue $500 million - $510 million Adjusted EBITDA $80 million - $85 million Normalized2 tax rate 20% - 25%

1 Reflects guidance given in Axon’s most recent quarterly earnings report 2 Tax rate can fluctuate depending on geography of income, change in stock price and the effect of discrete items 44
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SLIDE 45

Axon (AAXN) key takeaways

45
  • Strong customer relationships & market dominance
  • Ramping SaaS model & growing user base with network effects
  • Financial discipline & commitment to driving operating leverage
  • Seasoned team; top industry talent focused on public safety
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SLIDE 46 46

APPENDIX

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SLIDE 47 TASER X2 Basic TASER X2 Unlimited TASER 7 Basic TASER 7 Certification Body- Worn Camera Unlimited Axon Fleet Unlimited Legacy Officer Safety Plan Officer Safety Plan 7 Officer Safety Plan 7+ Monthly Price $26 $36 $40 $60 $89 $1 29 $1 0 9 $1 49 $1 99 Additional Required Purchase Cartridges n/ a Cartridges n/ a Upfront Camera Hardware n/ a Upfront Camera Hardware Upfront Camera Hardware Upfront Camera Hardware Legacy Weapon

✓ ✓ ✓

Unlimited Duty Cartridges

✓ ✓ ✓ ✓

TASER 7 and Dock

✓ ✓ ✓ ✓

Weapon Evidence.com License

✓ ✓ ✓ ✓

Weapons Training

✓ ✓ ✓

Training Cartridges

✓ ✓ ✓

Professional Evidence.com License

✓ ✓ ✓ ✓ ✓

Unlimited Storage

✓ ✓ ✓ ✓ ✓

Camera Hardware Upgrade every 2.5 years

✓ ✓ ✓ ✓

1 Axon Fleet Camera Upgrade

✓

Axon Aware (LTE Light)

✓ ✓

Axon Aware+ (LTE Live Streaming)

✓

Axon Performance

✓

Auto Tagging

✓

Redaction Assistant

✓

Citizen for Communities

✓

Signal Sidearm

✓

Axon Records

✓ ✓

TASER WEAPON BUNDLES CAMERA + EVIDENCE.COM BUNDLES WEAPON + CAMERA + SOFTWARE BUNDLES

What’s in each bundle we

  • ffer?
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SLIDE 48 $- $50,000 $100,000 $150,000 $200,000 Year 1 Year 2 Year 3 Year 4 Year 5 TASER 7 handle, battery, dock, holster, accessories Duty & training cartridges User training Warranty Axon Evidence software license Cash flow

TASER 7 Certification Plan

(Illustrative revenue allocation per 100 officers)

The TASER 7 Certification Plan MSRP is $60 per user per month. Revenue allocation is approximately 45% at initial delivery, and 55% over the remaining five years. Year 1 allocation includes the initial delivery amount plus the remaining monthly revenue allocation for software, warranty and cartridges. Revenue allocation may be subject to change based on market pricing. Illustration excludes discounts, including weapon trade-in credits.
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SLIDE 49

Officer Safety Plan

(Illustrative) Revenue Recognition & Cash Flow Per Officer

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SLIDE 50

Bundling disrupts how the industry buys & prices RMS

Officer Safety Plan* Legacy OSP 7 Promo OSP 7 Full OSP 7+ Promo OSP 7+ Full Monthly per officer $1 0 9 $1 49 $1 79 $1 99 $229 Annual recurring cash flow $1 ,30 8 $1 ,788 $2,1 48 $2,388 $2,748 Illustrative revenue allocation TASER $32 $54 $66 $53 $60 TASER X2, X26P Unlimited duty cartridges Sensors + Other $26 $28 $33 $29 $34 Axon Body 2, Axon Flex 2 upgrades Axon Dock upgrades Axon Cloud $51 $67 $80 $117 $135 Evidence.com license Unlimited device storage Video management tools Axon Redaction Assistant Axon Citizen for Communities

*Pricing represent s list ed bundled pricing. Axon cont ract s may include discount s t o list prices. Element s list ed as included in t he OSP t iers are not comprehensive. Ot her element s in OSP bundling, for example, include ext ended hardware warrant y. The init ial camera hardware and init ial docks relat ed t o Axon Body 2 and Axon Body 3 are a one- t ime separat e purchase and not capt ured in t he mont hly recurring fee. Revenue allocat ion per element may differ mat erially per cust omer, depending on t he scale of t he cont ract , bundled opt ions included and ot her cust omizat ions. Promo pricing in effect unt il Jan. 1 , 20 20 .

Unlimited device storage Video management tools Axon Aware+ (LTE live streaming) Axon Records Axon Auto Tagging Axon Performance Axon Records Axon Body 3 upgrades Axon Dock upgrades Signal Sidearm Evidence.com license Axon Body 3 upgrades Axon Dock upgrades Evidence.com license Unlimited device storage Video management tools Axon Aware (LTE light) CEW Evidence.com integration TASER 7 Unlimited duty cartridges Annual training TASER 7 Dock TASER 7 Unlimited duty cartridges Annual training TASER 7 Dock CEW Evidence.com integration

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SLIDE 51 51

Exponential Stock Performance Plan (XSPP)

Total alignment among senior leadership, investors, and employees in achieving market cap* and performance targets

*Plan features a 3% annual share dilution threshold, based on investor feedback and input
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SLIDE 52

AI ethics is a priority at Axon: Explainer