31
FIRST QUARTER 2016 April 21, 2016
FIRST QUARTER 2016
April 21, 2016
HElena norrman Senior Vice President Communications
FIRST QUARTER 2016
April 21, 2016
This presentation contains forward-looking statements. Such statements are based on our current expectations and are subject to certain risks and uncertainties that could negatively affect our business. Please read our earnings reports and our most recent annual report for a better understanding of these risks and uncertainties.
HANS VESTBERg
President and CEO
Slide title
44 pt
Text and bullet level 1
minimum 24 pt
Bullets level 2-5
minimum 20 pt
Characters for Embedded font:
!"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñòóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘
˙˚˛˜˝ẀẁẃẄẅỲỳ–—‘’‚“”„†‡•…‰‹›⁄€™ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶĶĹĹĻĻĽĽŃ
ŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮŰŰŲŲŴŴŶŶŹŹŻŻȘș−≤≥fifl
ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ
ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФХЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХЦЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏѢѢѲ
ѲѴѴҐҐәǽẀẁẂẃẄẅỲỳ№
Do not add objects or text in the
footer area
© Telefonaktiebolaget LM Ericsson 2016 | FIRST QUARTER REPORT 2016 | APRIL 21, 2016 | Page 5
key developments Q1
Market
› Strong focus on 5G and Internet of Things (IoT) at MWC
› Weak macro-economic environment in certain emerging
markets. However transition from 3G to 4G continues.
› Less coverage projects in Europe
› Continued operator focus on digital transformation
Ericsson
› Stable sales of mobile broadband in North America
› IPR sales continued to progress well
› Lower gross margin impacted by a challenging quarter for
Global Services
› Cost and efficiency program on track − Additional measures beyond the cost and efficiency
program, primarily in service delivery
Slide title
44 pt
Text and bullet level 1
minimum 24 pt
Bullets level 2-5
minimum 20 pt
Characters for Embedded font:
!"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñòóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘
˙˚˛˜˝ẀẁẃẄẅỲỳ–—‘’‚“”„†‡•…‰‹›⁄€™ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶĶĹĹĻĻĽĽŃ
ŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮŰŰŲŲŴŴŶŶŹŹŻŻȘș−≤≥fifl
ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ
ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФХЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХЦЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏѢѢѲ
ѲѴѴҐҐәǽẀẁẂẃẄẅỲỳ№
Do not add objects or text in the
footer area
© Telefonaktiebolaget LM Ericsson 2016 | FIRST QUARTER REPORT 2016 | APRIL 21, 2016 | Page 6
6%7% 7%
9%
4%
6%
9%
15%
7%
0
2
4
6
8
10
12
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2014 2015 2016
SEK b.
Tu
sen
tal
Operating income and margin
-9%
-1%
9%
1%
13%11%
3%
8%
-2%
0
20
40
60
80
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2014 2015 2016
SEK b.Net sales and sales developmentEricsson q1 2016
› Reported sales down -2% YoY – Organic FX adjusted sales stable YoY
– Lower Network Rollout activities in Europe and Lat Am
– Lower software sales in IP and core, stable sales in Radio
– Mobile broadband sales grew in North America and South
East Asia
– IPR revenues grew
› Reported sales down -29% QoQ – Seasonally strong Q4
– Business mix unchanged
› Operating income improved to SEK 3.5 (2.1) b. – Reduced operating expenses
– Positive effect from currency hedge contracts
– Increased IPR revenues
– Partly offset by a lower gross income
Net sales
Sales change, YoY
Operating income
Operating margin
Slide title
44 pt
Text and bullet level 1
minimum 24 pt
Bullets level 2-5
minimum 20 pt
Characters for Embedded font:
!"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñòóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘
˙˚˛˜˝ẀẁẃẄẅỲỳ–—‘’‚“”„†‡•…‰‹›⁄€™ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶĶĹĹĻĻĽĽŃ
ŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮŰŰŲŲŴŴŶŶŹŹŻŻȘș−≤≥fifl
ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ
ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФХЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХЦЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏѢѢѲ
ѲѴѴҐҐәǽẀẁẂẃẄẅỲỳ№
Do not add objects or text in the
footer area
© Telefonaktiebolaget LM Ericsson 2016 | FIRST QUARTER REPORT 2016 | APRIL 21, 2016 | Page 7
Regional sales Q1 YoY
Weak macro-economic environment in certain markets
JAN FRYKHAMMAR CFO and Executive Vice President
Slide title
44 pt
Text and bullet level 1
minimum 24 pt
Bullets level 2-5
minimum 20 pt
Characters for Embedded font:
!"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñòóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘
˙˚˛˜˝ẀẁẃẄẅỲỳ–—‘’‚“”„†‡•…‰‹›⁄€™ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶĶĹĹĻĻĽĽŃ
ŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮŰŰŲŲŴŴŶŶŹŹŻŻȘș−≤≥fifl
ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ
ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФХЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХЦЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏѢѢѲ
ѲѴѴҐҐәǽẀẁẂẃẄẅỲỳ№
Do not add objects or text in the
footer area
© Telefonaktiebolaget LM Ericsson 2016 | FIRST QUARTER REPORT 2016 | APRIL 21, 2016 | Page 9
14.7
15.615.3
17.8
15.6
17.7
14.9
15.9
14.2
10
12
14
16
18
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2014 2015 2016
SEK b.
Operating expenses › Cost and efficiency program on track – Target to achieve net annual savings of SEK 9 b. during 2017
– Increased efforts to further reduce cost of sales
› Operating expenses decreased YoY to SEK 14.2
(15.6) b. – Increased capitalization of development expenses
– Savings related to cost and efficiency program
– Reduced amortizations of intangible assets
› Restructuring charges for 2016 – Additional measures beyond the SEK 9 b. cost and efficiency
program, primarily in service delivery
– With current visibility, total restructuring charges are estimated
to be SEK 4-5 b. compared to previous estimate of SEK 3-4 b.
Cost Savings
Slide title
44 pt
Text and bullet level 1
minimum 24 pt
Bullets level 2-5
minimum 20 pt
Characters for Embedded font:
!"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñòóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘
˙˚˛˜˝ẀẁẃẄẅỲỳ–—‘’‚“”„†‡•…‰‹›⁄€™ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶĶĹĹĻĻĽĽŃ
ŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮŰŰŲŲŴŴŶŶŹŹŻŻȘș−≤≥fifl
ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ
ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФХЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХЦЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏѢѢѲ
ѲѴѴҐҐәǽẀẁẂẃẄẅỲỳ№
Do not add objects or text in the
footer area
© Telefonaktiebolaget LM Ericsson 2016 | FIRST QUARTER REPORT 2016 | APRIL 21, 2016 | Page 10
USD, 46%
EUR, 19%
CNY, 7%
INR, 5%
GBP, 3%
JPY, 2%
SEK and other, 18%
Sales net exposure, 2015
8.11
7.60
7.80
8.00
8.20
8.40
8.60
8.80
Jan Feb Mar Apr May Jun Jul Aug Sep Okt Nov Dec
2015
2016
Currency exposure Sales YoY change, Q1 2016
Reported Organic and FX adj.
Networks -2% -3%
Global Services -4% 0%
Support Solutions 10% 5%
Group -2% -1%
SEK/USD
Slide title
44 pt
Text and bullet level 1
minimum 24 pt
Bullets level 2-5
minimum 20 pt
Characters for Embedded font:
!"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñòóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘
˙˚˛˜˝ẀẁẃẄẅỲỳ–—‘’‚“”„†‡•…‰‹›⁄€™ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶĶĹĹĻĻĽĽŃ
ŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮŰŰŲŲŴŴŶŶŹŹŻŻȘș−≤≥fifl
ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ
ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФХЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХЦЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏѢѢѲ
ѲѴѴҐҐәǽẀẁẂẃẄẅỲỳ№
Do not add objects or text in the
footer area
© Telefonaktiebolaget LM Ericsson 2016 | FIRST QUARTER REPORT 2016 | APRIL 21, 2016 | Page 11
33.3%
33.9%
30%
32%
34%
36%
38%
40%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2014 2015 2016
Gross margin
Gross margin Q1
› Gross margin 33.3% (35.4%) YoY – Gross margin declined despite higher IPR revenues and
increased capacity sales in North America
– Lower margin in Global Services
– Higher share of mobile broadband coverage projects in
parts of Asia
– Lower software sales in IP and core
› Gross margin decreased QoQ – Business mix unchanged
– Lower IPR revenues
– Higher share of services sales
– Lower margin in Global Services including restructuring
excluding restructuring
Slide title
44 pt
Text and bullet level 1
minimum 24 pt
Bullets level 2-5
minimum 20 pt
Characters for Embedded font:
!"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñòóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘
˙˚˛˜˝ẀẁẃẄẅỲỳ–—‘’‚“”„†‡•…‰‹›⁄€™ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶĶĹĹĻĻĽĽŃ
ŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮŰŰŲŲŴŴŶŶŹŹŻŻȘș−≤≥fifl
ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ
ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФХЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХЦЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏѢѢѲ
ѲѴѴҐҐәǽẀẁẂẃẄẅỲỳ№
Do not add objects or text in the
footer area
© Telefonaktiebolaget LM Ericsson 2016 | FIRST QUARTER REPORT 2016 | APRIL 21, 2016 | Page 12
Operating Income Q1 YoY
Improve profitability: Efficiency improvements, Monetize footprint, Grow in targeted areas
4.0%
6.7%
Q1 2016 Q1 2015
Reported sales
-2%
Gross margin,
excluding
restructuring
33.9% (36.3%)
SEK 0.2 (-1.4) b.
Primarily
in R&D
SEK b.
2.1
3.5
Q115 Volume Gross margin Expenses Hedge impact Other Q116
Increased
restructuring
Slide title
44 pt
Text and bullet level 1
minimum 24 pt
Bullets level 2-5
minimum 20 pt
Characters for Embedded font:
!"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñòóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘
˙˚˛˜˝ẀẁẃẄẅỲỳ–—‘’‚“”„†‡•…‰‹›⁄€™ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶĶĹĹĻĻĽĽŃ
ŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮŰŰŲŲŴŴŶŶŹŹŻŻȘș−≤≥fifl
ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ
ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФХЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХЦЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏѢѢѲ
ѲѴѴҐҐәǽẀẁẂẃẄẅỲỳ№
Do not add objects or text in the
footer area
© Telefonaktiebolaget LM Ericsson 2016 | FIRST QUARTER REPORT 2016 | APRIL 21, 2016 | Page 13
Operating income by Segment
Improvement driven by Radio, partly offset by Global Services
4.0%
6.7%
Q1 2016 Q1 2015
SEK b.
2.1
3.5
2.3
-0.4
-0.70.2
Q115 Networks Network Rollout Professional Services Support Solutions Other Q116
Operating
margin, excl.
restructuring
12% (3%)
Operating
margin, excl.
restructuring
-11% (-3%)Operating
margin, excl.
restructuring
9% (12%)
Operating
margin, excl.
restructuring
8% (3%)
Global Services
Slide title
44 pt
Text and bullet level 1
minimum 24 pt
Bullets level 2-5
minimum 20 pt
Characters for Embedded font:
!"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñòóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘
˙˚˛˜˝ẀẁẃẄẅỲỳ–—‘’‚“”„†‡•…‰‹›⁄€™ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶĶĹĹĻĻĽĽŃ
ŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮŰŰŲŲŴŴŶŶŹŹŻŻȘș−≤≥fifl
ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ
ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФХЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХЦЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏѢѢѲ
ѲѴѴҐҐәǽẀẁẂẃẄẅỲỳ№
Do not add objects or text in the
footer area
© Telefonaktiebolaget LM Ericsson 2016 | FIRST QUARTER REPORT 2016 | APRIL 21, 2016 | Page 14
66.3
+3.6 -5.5 -0.5 -1.5-0.5 +0.1 -0.0 -1.0
61.0
30
35
40
45
50
55
60
65
70
75
80
Gross Cash1512A
Net Incomereconciled to
cash
Change NetOperating
Assets
Restructuring CAPEX Acquisitions,divestments &
Other
Other financingactivities
Dividend FX on cash Gross Cash1603A
Change in gross cash SEK -5.3 b
Change in gross cash Q1
The definition of Net cash is changed to exclude post-employment benefits. Net cash end Q1 SEK 36.5 b.
1) Excluding Short Term investments
Change in Net cash SEK -4.7 b.
16Q1A Investing1
-2.0 b
Financing
+0.1 b
FX on cash
-1.0 bb
Operating Cash Flow
-2.4 b
HANS VESTBERg
President and CEO
Slide title
44 pt
Text and bullet level 1
minimum 24 pt
Bullets level 2-5
minimum 20 pt
Characters for Embedded font:
!"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñòóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘
˙˚˛˜˝ẀẁẃẄẅỲỳ–—‘’‚“”„†‡•…‰‹›⁄€™ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶĶĹĹĻĻĽĽŃ
ŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮŰŰŲŲŴŴŶŶŹŹŻŻȘș−≤≥fifl
ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ
ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФХЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХЦЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏѢѢѲ
ѲѴѴҐҐәǽẀẁẂẃẄẅỲỳ№
Do not add objects or text in the
footer area
© Telefonaktiebolaget LM Ericsson 2016 | FIRST QUARTER REPORT 2016 | APRIL 21, 2016 | Page 16
-13%
3%
13%
-2%
8% 8%
-4%
9%
-2%
0
10
20
30
40
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2014 2015 2016
SEK b. Net sales and sales development
10%12%
11%13%
2%
8%10%
19%
11%
0
2
4
6
8
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2014 2015 2016
SEK b.
Tu
sen
tal
Operating income and margin
Networks
› Organic FX adjusted sales down -3% YoY – Lower software sales in IP and core
– Radio business stable with growth in North America and
South East Asia
– Lower mobile broadband investments in India following
delayed spectrum auctions
– Europe declined as major projects were completed in 2015
› Operating income SEK 2.7 (0.6) b. – Higher IPR revenues
– Lower operating expenses
– Positive effect from hedge contracts
› Business update – Acquisition of NodePrime
– Continuous ramp up of Ericsson Radio Systems – larger
volumes at year-end
Operating income
Operating margin
Net sales
Sales change, YoY
Slide title
44 pt
Text and bullet level 1
minimum 24 pt
Bullets level 2-5
minimum 20 pt
Characters for Embedded font:
!"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñòóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘
˙˚˛˜˝ẀẁẃẄẅỲỳ–—‘’‚“”„†‡•…‰‹›⁄€™ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶĶĹĹĻĻĽĽŃ
ŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮŰŰŲŲŴŴŶŶŹŹŻŻȘș−≤≥fifl
ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ
ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФХЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХЦЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏѢѢѲ
ѲѴѴҐҐәǽẀẁẂẃẄẅỲỳ№
Do not add objects or text in the
footer area
© Telefonaktiebolaget LM Ericsson 2016 | FIRST QUARTER REPORT 2016 | APRIL 21, 2016 | Page 17
0%
4%
8%
12%
16%
0
1
2
3
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2014 2015 2016
SEK b. Operating income and margin
-10%
0%
10%
20%
30%
0
10
20
30
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2014 2015 2016
SEK b.Net sales and sales development
› Organic FX adjusted sales flat YoY – Lower Network Rollout activities in Europe and Latin
America
– Professional Services stable, Systems Integration grew
› Operating income SEK 0.6 (1.7) b. – Network Rollout – lower volumes led to under-absorption and
temporary losses
– Professional Services – a number of systems integration
transformation projects in start-up phase
› Business update – Additional measures to improve profitability – adapting the
service delivery operations to current project volumes
– 21 Managed Services contracts signed
– 13 significant CSI contracts signed
Global services
Global Services
operating income Professional Services
operating margin Global Services
operating margin
Global Services
sales
Global Services
sales change, YoY
Professional Services
sales change, YoY
Slide title
44 pt
Text and bullet level 1
minimum 24 pt
Bullets level 2-5
minimum 20 pt
Characters for Embedded font:
!"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñòóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘
˙˚˛˜˝ẀẁẃẄẅỲỳ–—‘’‚“”„†‡•…‰‹›⁄€™ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶĶĹĹĻĻĽĽŃ
ŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮŰŰŲŲŴŴŶŶŹŹŻŻȘș−≤≥fifl
ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ
ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФХЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХЦЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏѢѢѲ
ѲѴѴҐҐәǽẀẁẂẃẄẅỲỳ№
Do not add objects or text in the
footer area
© Telefonaktiebolaget LM Ericsson 2016 | FIRST QUARTER REPORT 2016 | APRIL 21, 2016 | Page 18
0%
-13%
-4%
11%
3%
-8%
0%
30%
7%
-0.5
0.0
0.5
1.0
1.5
2.0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2014 2015 2016
SEK b.
Tu
se
nta
l
Operating income and margin
13%
21%30%
-21%
11% 9% 8%
40%
10%
0
2
4
6
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2014 2015 2016
SEK b.Net sales and sales development
Support solutions
› Organic FX adjusted sales up 5% YoY – Higher IPR revenues
– OSS and BSS declined due to lower software licenses sales
– TV and Media sales flat
› Operating income SEK 0.2 (0.1) b. – Higher IPR revenues
› Business update – Underlying demand remains strong in OSS and BSS
– Well positioned in TV and Media
Net sales
Sales change, YoY
Operating income
Operating margin
Ericsson accelerates transformation to drive growth and profitability
Slide title
44 pt
Text and bullet level 1
minimum 24 pt
Bullets level 2-5
minimum 20 pt
Characters for Embedded font:
!"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñòóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘
˙˚˛˜˝ẀẁẃẄẅỲỳ–—‘’‚“”„†‡•…‰‹›⁄€™ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶĶĹĹĻĻĽĽŃ
ŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮŰŰŲŲŴŴŶŶŹŹŻŻȘș−≤≥fifl
ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ
ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФХЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХЦЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏѢѢѲ
ѲѴѴҐҐәǽẀẁẂẃẄẅỲỳ№
Do not add objects or text in the
footer area
© Telefonaktiebolaget LM Ericsson 2016 | FIRST QUARTER REPORT 2016 | APRIL 21, 2016 | Page 20
› New company structure to accelerate strategy
execution and improve performance
› Focus on meeting changing customer requirements
and capture market opportunities to drive growth
› Strong focus on cost and efficiency across company
› New business unit structure and appointments to
Executive Leadership Team
› New organization effective July 1, 2016.
External reporting according to new structure from
Q1, 2017
Today’s announcement
Slide title
44 pt
Text and bullet level 1
minimum 24 pt
Bullets level 2-5
minimum 20 pt
Characters for Embedded font:
!"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñòóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘
˙˚˛˜˝ẀẁẃẄẅỲỳ–—‘’‚“”„†‡•…‰‹›⁄€™ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶĶĹĹĻĻĽĽŃ
ŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮŰŰŲŲŴŴŶŶŹŹŻŻȘș−≤≥fifl
ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ
ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФХЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХЦЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏѢѢѲ
ѲѴѴҐҐәǽẀẁẂẃẄẅỲỳ№
Do not add objects or text in the
footer area
© Telefonaktiebolaget LM Ericsson 2016 | FIRST QUARTER REPORT 2016 | APRIL 21, 2016 | Page 21
Transformation status
Workforce transformation
2014 2015
14K joined 17K left
Growth in targeted areas
2014
2015
~45
SEK b.
+20 %
Strong partnerships & collaborations
2011
2012
2013
2014
2015
2011
2012
2013
2014
2015
Several ICT
Several Telecom
Many ICT
Few Telecom
Organic growth
Profitability
New competitive landscape
We are transforming… … but challenges still exist
Slide title
44 pt
Text and bullet level 1
minimum 24 pt
Bullets level 2-5
minimum 20 pt
Characters for Embedded font:
!"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñòóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘
˙˚˛˜˝ẀẁẃẄẅỲỳ–—‘’‚“”„†‡•…‰‹›⁄€™ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶĶĹĹĻĻĽĽŃ
ŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮŰŰŲŲŴŴŶŶŹŹŻŻȘș−≤≥fifl
ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ
ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФХЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХЦЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏѢѢѲ
ѲѴѴҐҐәǽẀẁẂẃẄẅỲỳ№
Do not add objects or text in the
footer area
© Telefonaktiebolaget LM Ericsson 2016 | FIRST QUARTER REPORT 2016 | APRIL 21, 2016 | Page 22
New structure, july 1 regions, Business units and Group Functions
› Business units Network Products and Network Services focusing on evolving
and managing access networks
› Business units IT & Cloud Products and IT & Cloud Services focusing on
transforming core and IT
› Business Unit Media consolidating all media business – products and
services
› GF Sustainability & Corporate responsibility established
› GF Business Excellence & Common Functions dissolved, responsibilities
transferred to other units
› 10 Regions focusing on quality in sales and service delivery to operators
› 3 Customer Groups with central go-to-market for non-operator customers
(Industry & Society, IPR and Cable & Broadcast)
10 Regions
3 Customer Groups
5 Business Units
Group Functions
Slide title
44 pt
Text and bullet level 1
minimum 24 pt
Bullets level 2-5
minimum 20 pt
Characters for Embedded font:
!"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñòóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘
˙˚˛˜˝ẀẁẃẄẅỲỳ–—‘’‚“”„†‡•…‰‹›⁄€™ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶĶĹĹĻĻĽĽŃ
ŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮŰŰŲŲŴŴŶŶŹŹŻŻȘș−≤≥fifl
ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ
ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФХЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХЦЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏѢѢѲ
ѲѴѴҐҐәǽẀẁẂẃẄẅỲỳ№
Do not add objects or text in the
footer area
© Telefonaktiebolaget LM Ericsson 2016 | FIRST QUARTER REPORT 2016 | APRIL 21, 2016 | Page 23
Ericsson New structure – effective July 1, 2016
C
U
S
T
O
M
E
R
S
Business Unit
IT & Cloud Products
Business Unit
IT & Cloud Services
Business Unit
Network Products
Re
se
arc
h
Business Unit
Network Services
Customer Group Industry & Society
Business Unit
Media
Customer Group IPR & Licensing
Customer Group Broadcast & Cable
Group Functions
GF Sales
GF Legal Affairs
GF Human Resources
GF Marketing & Communications
GF Finance & Common
Functions
GF Strategy
GF Technology
GF Sustainability & CR
CEO
Hans Vestberg
Region (10)
Network
Products
IT & Cloud
Prod & Services
Customer
Units
Network
Services
Slide title
44 pt
Text and bullet level 1
minimum 24 pt
Bullets level 2-5
minimum 20 pt
Characters for Embedded font:
!"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñòóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘
˙˚˛˜˝ẀẁẃẄẅỲỳ–—‘’‚“”„†‡•…‰‹›⁄€™ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶĶĹĹĻĻĽĽŃ
ŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮŰŰŲŲŴŴŶŶŹŹŻŻȘș−≤≥fifl
ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ
ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФХЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХЦЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏѢѢѲ
ѲѴѴҐҐәǽẀẁẂẃẄẅỲỳ№
Do not add objects or text in the
footer area
© Telefonaktiebolaget LM Ericsson 2016 | FIRST QUARTER REPORT 2016 | APRIL 21, 2016 | Page 24
Overview new structure
1.Source: Ericsson Capital Markets Day 2015 2. Source: Non-IFRS ROI Model
Addressable market
2014 (USD b.)1
~120
~100
~14
~ 5%
~ 25%
~ 70%
% of Ericsson
sales 20152
Networks
IT & Cloud
Media Media
Compression
Content delivery
OSS & BSS
Cloud
NFV/SDN
IP routing
Radio
Transport
Main components
products
Broadcast Services
Consulting &
Systems Integration
IT Managed Services
Customer Support
Network Rollout
Network Managed
Services
Main components
services
Slide title
44 pt
Text and bullet level 1
minimum 24 pt
Bullets level 2-5
minimum 20 pt
Characters for Embedded font:
!"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñòóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘
˙˚˛˜˝ẀẁẃẄẅỲỳ–—‘’‚“”„†‡•…‰‹›⁄€™ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶĶĹĹĻĻĽĽŃ
ŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮŰŰŲŲŴŴŶŶŹŹŻŻȘș−≤≥fifl
ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ
ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФХЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХЦЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏѢѢѲ
ѲѴѴҐҐәǽẀẁẂẃẄẅỲỳ№
Do not add objects or text in the
footer area
© Telefonaktiebolaget LM Ericsson 2016 | FIRST QUARTER REPORT 2016 | APRIL 21, 2016 | Page 25
Efficiency benefits
Simplified structure between
business units and regions –
increased accountability and
empowerment
Closer set-up between Products
and Services – build scale &
shorter time to market
Remove portfolio duplications and
focus on end-to-end flows and
accountability
Simplified
structure
Speed and scale
Efficiencies
Customer Benefits
Evolved go-to-market model
with clear end-to-end
accountability, based on
customer type
Technology and services
expertise closer to customer,
with mirrored responsibility from
frontline to portfolio owners for
simplicity and speed
Increased visibility and scale of
skills in IT & Cloud, Media and
Industry & Society to better
support customers in the digital
transformation
Optimized for
different customer
needs
Easier to do
business with us
Improved digital
transformation
capabilities
Slide title
44 pt
Text and bullet level 1
minimum 24 pt
Bullets level 2-5
minimum 20 pt
Characters for Embedded font:
!"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñòóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘
˙˚˛˜˝ẀẁẃẄẅỲỳ–—‘’‚“”„†‡•…‰‹›⁄€™ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶĶĹĹĻĻĽĽŃ
ŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮŰŰŲŲŴŴŶŶŹŹŻŻȘș−≤≥fifl
ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ
ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФХЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХЦЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏѢѢѲ
ѲѴѴҐҐәǽẀẁẂẃẄẅỲỳ№
Do not add objects or text in the
footer area
© Telefonaktiebolaget LM Ericsson 2016 | FIRST QUARTER REPORT 2016 | APRIL 21, 2016 | Page 26
New Structure supports profit improvements
2014 actuals 2020
Monetize
footprint
Efficiency
improvements
Build success
in targeted
growth areas
Further focus on profitability and value creation
Executing on current cost
& efficiency program
Remove duplications in
portfolios
Stronger support for
core business
Clear structure to support
strategy execution
7 % operating
margin
9% operating
margin, 2015
2014
Slide title
44 pt
Text and bullet level 1
minimum 24 pt
Bullets level 2-5
minimum 20 pt
Characters for Embedded font:
!"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñòóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘
˙˚˛˜˝ẀẁẃẄẅỲỳ–—‘’‚“”„†‡•…‰‹›⁄€™ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶĶĹĹĻĻĽĽŃ
ŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮŰŰŲŲŴŴŶŶŹŹŻŻȘș−≤≥fifl
ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ
ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФХЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХЦЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏѢѢѲ
ѲѴѴҐҐәǽẀẁẂẃẄẅỲỳ№
Do not add objects or text in the
footer area
© Telefonaktiebolaget LM Ericsson 2016 | FIRST QUARTER REPORT 2016 | APRIL 21, 2016 | Page 27
Aligns strategy with reporting
› Financial reporting according to new structure
› More information at CMD – November 9, 2016
› Restated numbers will be presented beginning 2017
› External reporting from Q1, 2017
Business Unit
IT & Cloud Products
Business Unit
IT & Cloud Services
Business Unit
Network Products
Business Unit
Network Services
Business Unit
Media
Slide title
44 pt
Text and bullet level 1
minimum 24 pt
Bullets level 2-5
minimum 20 pt
Characters for Embedded font:
!"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñòóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘
˙˚˛˜˝ẀẁẃẄẅỲỳ–—‘’‚“”„†‡•…‰‹›⁄€™ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶĶĹĹĻĻĽĽŃ
ŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮŰŰŲŲŴŴŶŶŹŹŻŻȘș−≤≥fifl
ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ
ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФХЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХЦЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏѢѢѲ
ѲѴѴҐҐәǽẀẁẂẃẄẅỲỳ№
Do not add objects or text in the
footer area
© Telefonaktiebolaget LM Ericsson 2016 | FIRST QUARTER REPORT 2016 | APRIL 21, 2016 | Page 28
› New company structure to accelerate strategy
execution and improve performance
› Focus on meeting changing customer requirements
and capture market opportunities to drive growth
› Strong focus on cost and efficiency across company
› New business unit structure and appointments to
Executive Leadership Team
› New organization effective July 1, 2016.
External reporting according to new structure from
Q1, 2017
Today’s announcement
Slide title
44 pt
Text and bullet level 1
minimum 24 pt
Bullets level 2-5
minimum 20 pt
Characters for Embedded font:
!"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~¡¢£¤¥¦§¨©ª«¬®¯°±²³´¶·¸¹º»¼½ÀÁÂÃÄÅÆÇÈËÌÍÎÏÐÑÒÓÔÕÖ×ØÙÚÛÜÝÞßàáâãäåæçèéêëìíîïðñòóôõö÷øùúûüýþÿĀāĂăąĆćĊċČĎďĐđĒĖėĘęĚěĞğĠġĢģĪīĮįİıĶķĹĺĻļĽľŁłŃńŅņŇňŌŐőŒœŔŕŖŗŘřŚśŞşŠšŢţŤťŪūŮůŰűŲųŴŵŶŷŸŹźŻżŽžƒȘșˆˇ˘
˙˚˛˜˝ẀẁẃẄẅỲỳ–—‘’‚“”„†‡•…‰‹›⁄€™ĀĀĂĂĄĄĆĆĊĊČČĎĎĐĐĒĒĖĖĘĘĚĚĞĞĠĠĢĢĪĪĮĮİĶĶĹĹĻĻĽĽŃ
ŃŅŅŇŇŌŌŐŐŔŔŖŖŘŘŚŚŞŞŢŢŤŤŪŪŮŮŰŰŲŲŴŴŶŶŹŹŻŻȘș−≤≥fifl
ΆΈΉΊΌΎΏΐΑΒΓΕΖΗΘΙΚΛΜΝΞΟΠΡΣΤΥΦΧΨΪΫΆΈΉΊΰαβγδεζηθικλνξορςΣΤΥΦΧΨΩΪΫΌΎΏ
ЁЂЃЄЅІЇЈЉЊЋЌЎЏАБВГДЕЖЗИЙКЛМНОПРСТУФХЦЧШЩЪЫЬЭЮЯАБВГДЕЖЗИЙКЛМНОПРСТУФХЦЧШЩЪЫЬЭЮЯЁЂЃЄЅІЇЈЉЊЋЌЎЏѢѢѲ
ѲѴѴҐҐәǽẀẁẂẃẄẅỲỳ№
Do not add objects or text in the
footer area
© Telefonaktiebolaget LM Ericsson 2016 | FIRST QUARTER REPORT 2016 | APRIL 21, 2016 | Page 29
FIRST QUARTER 2016
April 21, 2016
This presentation contains forward-looking statements. Such statements are based on our current expectations and are subject to certain risks and uncertainties that could negatively affect our business. Please read our earnings reports and our most recent annual report for a better understanding of these risks and uncertainties.
