SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN ISSUER
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
April 24, 2013
LM ERICSSON TELEPHONE COMPANY
(Translation of registrants name into English)
Torshamnsgatan 23, Kista
SE-164 83, Stockholm, Sweden
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F x Form 40-F ¨
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes ¨ No x
Announcement of LM Ericsson Telephone Company, dated April 24, 2013 regarding Ericsson reports first quarter results 2013
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
TELEFONAKTIEBOLAGET LM ERICSSON (publ) | ||
By: | /s/ NINA MACPHERSON | |
Nina Macpherson | ||
Senior Vice President and | ||
General Counsel | ||
By: | /s/ HELENA NORRMAN | |
Helena Norrman | ||
Senior Vice President | ||
Corporate Communications |
Date: April 24, 2013
ERICSSON
FIRST QUARTER
REPORT 2013
Ericsson first quarter report 2013
| Cash flow from operating activities was SEK -3.0 b. primarily driven by higher working capital. |
| Net cash decreased by SEK -6.3 b. QoQ to SEK 32.2 b. mainly due to negative operating cash flow and reclassification of Swedish special payroll taxes of SEK 1.8 b. from Other current liabilities to Pension liabilities. |
SEK b. |
Q1 2013 |
Q1 20122) |
YoY Change |
Q4 2012 |
QoQ Change |
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Net sales |
52.0 | 51.0 | 2 | % | 66.9 | -22 | % | |||||||||||||
Of which Networks |
28.1 | 27.3 | 3 | % | 35.3 | -20 | % | |||||||||||||
Of which Global Services |
21.5 | 20.6 | 4 | % | 28.0 | -24 | % | |||||||||||||
Of which Support Solutions |
2.4 | 3.0 | -19 | % | 3.6 | -33 | % | |||||||||||||
Gross margin |
32.0 | % | 33.3 | % | | 31.1 | % | | ||||||||||||
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Operating income excl JV |
2.1 | 10.5 | -80 | % | 4.8 | -55 | % | |||||||||||||
Operating margin excl JV |
4.1 | % | 20.6 | % | | 7.1 | % | | ||||||||||||
Of which Networks |
6 | % | 6 | % | | 8 | % | | ||||||||||||
Of which Global Services |
3 | % | 6 | % | | 6 | % | | ||||||||||||
Of which Support Solutions |
-1 | % | -1 | % | | 8 | % | | ||||||||||||
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Operating income incl JV |
2.1 | 9.1 | -77 | % | -3.8 | | ||||||||||||||
Operating margin incl JV |
4.0 | % | 17.8 | % | | -5.7 | % | | ||||||||||||
Net income |
1.2 | 8.8 | -86 | % | -6.3 | | ||||||||||||||
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EPS diluted, SEK |
0.37 | 2.76 | -87 | % | -1.99 | | ||||||||||||||
EPS (Non-IFRS), SEK1) |
0.99 | 3.14 | -68 | % | -1.40 | | ||||||||||||||
Cash flow from operating activities |
-3.0 | 0.7 | | 15.7 | | |||||||||||||||
Net cash, end of period |
32.2 | 37.1 | -13 | % | 38.5 | -16 | % |
1) | EPS, diluted, excl. amortizations, write-downs of acquired intangible assets, and restructuring |
2) | Q1 2012 includes a gain from the divestment of Sony Ericsson of SEK 7.7 b. |
Ericsson First Quarter Report 2013 | 1 |
Comments from Hans vestberg, president and ceo
Ericsson First Quarter Report 2013 | 2 |
Financial highlights first quarter
INCOME STATEMENT
Ericsson First Quarter Report 2013 | 3 |
BALANCE SHEET AND OTHER PERFORMANCE INDICATORS FIRST QUARTER
Ericsson First Quarter Report 2013 | 4 |
NETWORKS
SEK b. |
Q1 2013 |
Q1 2012 |
YoY Change |
Q4 2012 |
QoQ Change |
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Network sales |
28.1 | 27.3 | 3 | % | 35.3 | -20 | % | |||||||||||||
Operating income |
1.6 | 1.6 | -5 | % | 2.8 | -44 | % | |||||||||||||
Operating margin |
6 | % | 6 | % | | 8 | % | |
Ericsson First Quarter Report 2013 | 5 |
GLOBAL SERVICES
SEK b. |
Q1 2013 |
Q1 2012 |
YoY Change |
Q4 2012 |
QoQ Change |
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Global Services sales |
21.5 | 20.6 | 4 | % | 28.0 | -24 | % | |||||||||||||
Of which Professional Services |
14.6 | 14.9 | -2 | % | 18.9 | -23 | % | |||||||||||||
Of which Managed Services |
5.9 | 5.7 | 3 | % | 6.8 | -13 | % | |||||||||||||
Of which Network Rollout |
6.8 | 5.7 | 19 | % | 9.2 | -26 | % | |||||||||||||
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Operating income |
0.7 | 1.3 | -43 | % | 1.8 | -59 | % | |||||||||||||
Of which Professional Services |
1.8 | 1.9 | -4 | % | 2.8 | -34 | % | |||||||||||||
Of which Network Rollout |
-1.1 | -0.6 | -73 | % | -1.0 | -10 | % | |||||||||||||
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Operating margin |
3 | % | 6 | % | | 6 | % | | ||||||||||||
Of which Professional Services |
13 | % | 13 | % | | 15 | % | | ||||||||||||
Of which Network Rollout |
-16 | % | -11 | % | | -11 | % | |
Other information |
Q1 2013 |
Full year 2012 | ||||||
No. of signed Managed Services contracts |
21 | 52 | ||||||
Of which expansions/extensions |
8 | 19 | ||||||
No. of signed significant consulting & systems integration contracts1) |
8 | 24 | ||||||
Number of subscribers in networks managed by Ericsson, end of period 2) |
~ 950 m. | ~ 950 m. | ||||||
Of which in network operations contracts |
550 m. | 550 m. | ||||||
Number of Ericsson services professionals, end of period |
61,000 | 60,000 |
1) In the areas of OSS and BSS, IP, Service Delivery Platforms and data center build projects.
2) The figure includes network operations contracts and field operation contracts.
Ericsson First Quarter Report 2013 | 6 |
SUPPORT SOLUTIONS
SEK b. |
Q1 2013 |
Q1 2012 |
YoY Change |
Q4 2012 |
QoQ Change |
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Support Solutions sales |
2.4 | 3.0 | -19 | % | 3.6 | -33 | % | |||||||||||||
Operating income |
0.0 | 0.0 | -4 | % | 0.3 | | ||||||||||||||
Operating margin |
-1 | % | -1 | % | | 8 | % | |
Ericsson First Quarter Report 2013 | 7 |
ST-ERICSSON
USD m. |
Q1 2013 |
Q1 2012 |
YoY Change |
Q4 2012 |
QoQ Change |
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Net sales |
256 | 290 | -12 | % | 358 | -28 | % | |||||||||||||
Adjusted operating income 1) |
-158 | -297 | 47 | % | -133 | -19 | % |
1) | Operating income adjusted for amortization of acquired intangibles and restructuring charges. |
Ericsson First Quarter Report 2013 | 8 |
REGIONAL SALES
First quarter 2013 | Growth | |||||||||||||||||||||||
SEK b. |
Networks | Global Services |
Support Solutions |
Total | YoY | QoQ | ||||||||||||||||||
North America |
9.2 | 6.1 | 0.5 | 15.8 | 23 | % | -7 | % | ||||||||||||||||
Latin America |
2.0 | 2.0 | 0.4 | 4.4 | -9 | % | -33 | % | ||||||||||||||||
Northern Europe and Central Asia |
1.3 | 1.0 | 0.1 | 2.3 | 0 | % | -24 | % | ||||||||||||||||
Western and Central Europe |
1.9 | 2.3 | 0.1 | 4.3 | 1 | % | -20 | % | ||||||||||||||||
Mediterranean |
2.4 | 2.7 | 0.1 | 5.3 | 14 | % | -25 | % | ||||||||||||||||
Middle East |
1.4 | 1.5 | 0.3 | 3.2 | 0 | % | -38 | % | ||||||||||||||||
Sub-Saharan Africa |
1.1 | 0.8 | 0.2 | 2.1 | -3 | % | -40 | % | ||||||||||||||||
India |
0.9 | 0.6 | 0.1 | 1.6 | 13 | % | 0 | % | ||||||||||||||||
North East Asia |
3.4 | 2.6 | 0.1 | 6.1 | -34 | % | -41 | % | ||||||||||||||||
South East Asia and Oceania |
2.6 | 1.4 | 0.1 | 4.1 | 22 | % | -9 | % | ||||||||||||||||
Other1) |
2.0 | 0.4 | 0.5 | 2.9 | 2 | % | -3 | % | ||||||||||||||||
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Total |
28.1 | 21.5 | 2.4 | 52.0 | 2 | % | -22 | % | ||||||||||||||||
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1) | Region Other includes licensing revenues, sales of cables, broadcast services, power modules and other businesses. |
In the regional dimension, all of the Telcordia sales are reported in the Support Solutions segment except for North America where it is split 50/50 between Global Services and Support Solutions. The acquired Technicolor Broadcast Service Division is reported in region Other. Multimedia brokering (IPX) was previously reported in each region in segment Support Solutions. For the first three quarters 2012 it was part of region Other. IPX was divested end Q312.
Ericsson First Quarter Report 2013 | 9 |
Ericsson First Quarter Report 2013 | 10 |
Ericsson First Quarter Report 2013 | 11 |
Ericsson First Quarter Report 2013 | 12 |
Assessment of risk environment
Ericsson First Quarter Report 2013 | 13 |
Ericsson First Quarter Report 2013 | 14 |
Ericsson First Quarter Report 2013 | 15 |
Financial statements and additional information
Ericsson First Quarter Report 2013 | 16 |
Jan - Mar | Jan - Dec | |||||||||||||||
SEK million |
2012 | 2013 | Change | 2012 | ||||||||||||
Net sales |
50,974 | 52,032 | 2 | % | 227,779 | |||||||||||
Cost of sales |
-33,985 | -35,394 | 4 | % | -155,699 | |||||||||||
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Gross income |
16,989 | 16,638 | -2 | % | 72,080 | |||||||||||
Gross margin (%) |
33.3 | % | 32.0 | % | 31.6 | % | ||||||||||
Research and development expenses |
-8,016 | -7,877 | -2 | % | -32,833 | |||||||||||
Selling and administrative expenses |
-6,232 | -6,643 | 7 | % | -26,023 | |||||||||||
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Operating expenses |
-14,248 | -14,520 | 2 | % | -58,856 | |||||||||||
Other operating income and expenses |
7,749 | 1) | 20 | 8,965 | 1) | |||||||||||
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Operating income before shares in earnings of JV and associated companies |
10,490 | 2,138 | -80 | % | 22,189 | |||||||||||
Operating margin before shares in earnings of JV and associated companies (%) |
20.6 | % | 4.1 | % | 9.7 | % | ||||||||||
Shares in earnings of JV and associated companies |
-1,403 | -32 | -98 | % | -11,731 | 2) | ||||||||||
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Operating income |
9,087 | 2,106 | -77 | % | 10,458 | |||||||||||
Financial income |
262 | 180 | 1,708 | |||||||||||||
Financial expenses |
-273 | -565 | -1,984 | |||||||||||||
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Income after financial items |
9,076 | 1,721 | -81 | % | 10,182 | |||||||||||
Taxes |
-272 | -517 | -4,244 | |||||||||||||
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Net income |
8,804 | 1,204 | -86 | % | 5,938 | |||||||||||
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Net income attributable to: |
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- Stockholders of the Parent Company |
8,950 | 1,205 | 5,775 | |||||||||||||
- Non-controlling interests |
-146 | -1 | 163 | |||||||||||||
Other information |
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Average number of shares, basic (million) |
3,212 | 3,222 | 3,216 | |||||||||||||
Earnings per share, basic (SEK) 3) |
2.79 | 0.37 | 1.80 | |||||||||||||
Earnings per share, diluted (SEK) 3) |
2.76 | 0.37 | 1.78 | |||||||||||||
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STATEMENT OF COMPREHENSIVE INCOME
Jan - Mar | Jan - Dec | |||||||||||
SEK million |
2012 | 2013 | 2012 | |||||||||
Net income |
8,804 | 1,204 | 5,938 | |||||||||
Other comprehensive income |
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Items that will not be reclassified to profit or loss |
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Remeasurements of defined benefits pension plans incl. asset ceiling |
436 | 819 | -451 | |||||||||
Revaluation of other investments in shares and participations |
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Fair value remeasurement |
| | 6 | |||||||||
Tax on items that will not be reclassified to profit or loss |
-139 | -388 | -59 | |||||||||
Items that may be reclassified to profit or loss |
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Cash flow hedges |
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Gains/losses arising during the period |
785 | 174 | 1,668 | |||||||||
Reclassification adjustments for gains/losses included in profit or loss |
-213 | -466 | -568 | |||||||||
Adjustments for amounts transferred to initial carrying amount of hedged items |
92 | | 92 | |||||||||
Changes in cumulative translation adjustments |
-2,004 | -718 | -3,947 | |||||||||
Share of other comprehensive income on JV and associated companies |
-52 | -16 | -486 | |||||||||
Tax on items that may be reclassified to profit or loss |
-253 | 62 | -363 | |||||||||
Total other comprehensive income |
-1,348 | -533 | -4,108 | |||||||||
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Total comprehensive income |
7,456 | 671 | 1,830 | |||||||||
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Total comprehensive income attributable to: |
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Stockholders of the Parent Company |
7,650 | 693 | 1,716 | |||||||||
Non-controlling interests |
-194 | -22 | 114 | |||||||||
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1) | Includes gain on sale of Sony Ericsson SEK 7.7 billion in Q1 2012 |
2) | Negatively impacted by a non-cash charge related to ST-Ericsson of SEK -8.0 billion in Q4 2012 |
3) | Based on Net income attributable to stockholders of the Parent Company |
Ericsson First Quarter Report 2013 | 17 |
Dec 31 | Mar 31 | |||||||
SEK million |
2012 | 2013 | ||||||
ASSETS |
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Non-current assets |
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Intangible assets |
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Capitalized development expenses |
3,840 | 3,819 | ||||||
Goodwill |
30,404 | 30,297 | ||||||
Intellectual property rights, brands and other intangible assets |
15,202 | 14,205 | ||||||
Property, plant and equipment |
11,493 | 11,461 | ||||||
Financial assets |
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Equity in JV and associated companies |
2,842 | 2,799 | ||||||
Other investments in shares and participations |
386 | 389 | ||||||
Customer finance, non-current |
1,290 | 1,146 | ||||||
Other financial assets, non-current |
3,964 | 4,180 | ||||||
Deferred tax assets |
12,321 | 12,132 | ||||||
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81,742 | 80,428 | |||||||
Current assets |
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Inventories |
28,802 | 29,811 | ||||||
Trade receivables |
63,660 | 65,101 | ||||||
Customer finance, current |
4,019 | 3,869 | ||||||
Other current receivables |
20,065 | 19,206 | ||||||
Short-term investments 1) |
32,026 | 34,641 | ||||||
Cash and cash equivalents |
44,682 | 37,444 | ||||||
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193,254 | 190,072 | |||||||
Total assets |
274,996 | 270,500 | ||||||
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EQUITY AND LIABILITIES |
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Equity |
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Stockholders equity |
136,883 | 137,668 | ||||||
Non-controlling interest in equity of subsidiaries |
1,600 | 1,501 | ||||||
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138,483 | 139,169 | |||||||
Non-current liabilities |
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Post-employment benefits 2) |
9,503 | 11,132 | ||||||
Provisions, non-current |
211 | 247 | ||||||
Deferred tax liabilities |
3,120 | 3,281 | ||||||
Borrowings, non-current |
23,898 | 23,638 | ||||||
Other non-current liabilities |
2,377 | 2,407 | ||||||
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39,109 | 40,705 | |||||||
Current liabilities |
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Provisions, current |
8,427 | 9,252 | ||||||
Borrowings, current |
4,769 | 5,084 | ||||||
Trade payables |
23,100 | 19,898 | ||||||
Other current liabilities 2) |
61,108 | 56,392 | ||||||
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97,404 | 90,626 | |||||||
Total equity and liabilities |
274,996 | 270,500 | ||||||
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Of which interest-bearing liabilities and post-employment benefits |
38,170 | 39,854 | ||||||
Of which net cash |
38,538 | 32,231 | ||||||
Assets pledged as collateral |
520 | 2,534 | ||||||
Contingent liabilities |
613 | 601 | ||||||
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1) | Including loan to ST-Ericsson of SEK 540 million as of March 31, 2013 (SEK 0 million as of December 31, 2012) |
2) | The provision for the Swedish special payroll taxes, amounting to SEK 1.8 (1.8) billion, which was previously included in Other current liabilities, has been re-classified as pension liability in line with the implementation of IAS19R on January 1, 2013 |
Ericsson First Quarter Report 2013 | 18 |
CONSOLIDATED STATEMENT OF CASH FLOWS
Jan - Mar | Jan - Dec | |||||||||||
SEK million |
2012 | 2013 | 2012 | |||||||||
Operating activities |
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Net income |
8,804 | 1,204 | 5,938 | |||||||||
Adjustments to reconcile net income to cash |
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Taxes |
-1,118 | -1,849 | -1,140 | |||||||||
Earnings/dividends in JV and associated companies |
1,290 | 33 | 11,769 | |||||||||
Depreciation, amortization and impairment losses |
2,315 | 2,411 | 9,889 | |||||||||
Other |
-7,022 | -201 | -7,441 | |||||||||
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4,269 | 1,598 | 19,015 | ||||||||||
Changes in operating net assets |
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Inventories |
-59 | -1,426 | 2,752 | |||||||||
Customer finance, current and non-current |
282 | 260 | -1,259 | |||||||||
Trade receivables |
3,722 | -1,934 | -1,103 | |||||||||
Trade payables |
-2,713 | -2,948 | -1,311 | |||||||||
Provisions and post-employment benefits |
-1,771 | 1,155 | -1,920 | |||||||||
Other operating assets and liabilities, net |
-2,999 | 325 | 5,857 | |||||||||
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-3,538 | -4,568 | 3,016 | ||||||||||
Cash flow from operating activities |
731 | -2,970 | 22,031 | |||||||||
Investing activities |
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Investments in property, plant and equipment |
-1,648 | -1,196 | -5,429 | |||||||||
Sales of property, plant and equipment |
309 | 91 | 568 | |||||||||
Acquisitions/divestments of subsidiaries and other operations, net |
-1,730 | 1) | -136 | -2,077 | 1) | |||||||
Product development |
-251 | -282 | -1,641 | |||||||||
Other investing activities |
195 | 298 | 1,540 | |||||||||
Short-term investments |
-3,999 | -2,860 | 2,151 | |||||||||
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Cash flow from investing activities |
-7,124 | -4,085 | -4,888 | |||||||||
Cash flow before financing activities |
-6,393 | -7,055 | 17,143 | |||||||||
Financing activities |
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Dividends paid |
| -61 | -8,632 | |||||||||
Other financing activities |
-1,318 | 92 | -753 | |||||||||
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Cash flow from financing activities |
-1,318 | 31 | -9,385 | |||||||||
Effect of exchange rate changes on cash |
-327 | -214 | -1,752 | |||||||||
Net change in cash |
-8,038 | -7,238 | 6,006 | |||||||||
Cash and cash equivalents, beginning of period |
38,676 | 44,682 | 38,676 | |||||||||
Cash and cash equivalents, end of period |
30,638 | 37,444 | 44,682 | |||||||||
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1) | Includes payment of external loan of SEK -6.2 billion attributable to the acquisition of Telcordia in Q1 2012 |
Ericsson First Quarter Report 2013 | 19 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Jan - Mar | Jan - Mar | Jan - Dec | ||||||||||
SEK million |
2012 | 2013 | 2012 | |||||||||
Opening balance |
145,270 | 138,483 | 145,270 | |||||||||
Total comprehensive income |
7,456 | 671 | 1,830 | |||||||||
Sale/repurchase of own shares |
17 | 21 | -93 | |||||||||
Stock issue |
| | 159 | |||||||||
Stock purchase plan |
108 | 82 | 405 | |||||||||
Dividends paid |
| -61 | -8,632 | |||||||||
Transactions with non-controlling interests |
-384 | -26 | -456 | |||||||||
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Closing balance |
152,467 | 139,170 | 138,483 | |||||||||
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Ericsson First Quarter Report 2013 | 20 |
CONSOLIDATED INCOME STATEMENT ISOLATED QUARTERS
2012 | 2013 | |||||||||||||||||||
Isolated quarters, SEK million |
Q1 | Q2 | Q3 | Q4 | Q1 | |||||||||||||||
Net sales |
50,974 | 55,319 | 54,550 | 66,936 | 52,032 | |||||||||||||||
Cost of sales |
-33,985 | -37,611 | -37,970 | -46,133 | -35,394 | |||||||||||||||
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Gross income |
16,989 | 17,708 | 16,580 | 20,803 | 16,638 | |||||||||||||||
Gross margin (%) |
33.3 | % | 32.0 | % | 30.4 | % | 31.1 | % | 32.0 | % | ||||||||||
Research and development expenses |
-8,016 | -8,097 | -7,473 | -9,247 | -7,877 | |||||||||||||||
Selling and administrative expenses |
-6,232 | -6,855 | -5,797 | -7,139 | -6,643 | |||||||||||||||
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Operating expenses |
-14,248 | -14,952 | -13,270 | -16,386 | -14,520 | |||||||||||||||
Other operating income and expenses |
7,749 | 1) | 530 | 341 | 345 | 20 | ||||||||||||||
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|
|||||||||||
Operating income before shares in earnings of JV and associated companies |
10,490 | 3,286 | 3,651 | 4,762 | 2,138 | |||||||||||||||
Operating margin before shares in earnings of JV and associated companies (%) |
20.6 | % | 5.9 | % | 6.7 | % | 7.1 | % | 4.1 | % | ||||||||||
Shares in earnings of JV and associated companies |
-1,403 | -1,208 | -555 | -8,565 | 2) | -32 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Operating income |
9,087 | 2,078 | 3,096 | -3,803 | 2,106 | |||||||||||||||
Financial income |
262 | 618 | 390 | 438 | 180 | |||||||||||||||
Financial expenses |
-273 | -924 | -275 | -512 | -565 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income after financial items |
9,076 | 1,772 | 3,211 | -3,877 | 1,721 | |||||||||||||||
Taxes |
-272 | -567 | -1,027 | -2,378 | -517 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income |
8,804 | 1,205 | 2,184 | -6,255 | 1,204 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income attributable to: |
||||||||||||||||||||
- Stockholders of the Parent Company |
8,950 | 1,110 | 2,177 | -6,462 | 1,205 | |||||||||||||||
- Non-controlling interests |
-146 | 95 | 7 | 207 | -1 | |||||||||||||||
Other information |
||||||||||||||||||||
Average number of shares, basic (million) |
3,212 | 3,215 | 3,217 | 3,219 | 3,222 | |||||||||||||||
Earnings per share, basic (SEK) 3) |
2.79 | 0.35 | 0.68 | -2.01 | 0.37 | |||||||||||||||
Earnings per share, diluted (SEK) 3) |
2.76 | 0.34 | 0.67 | -1.99 | 0.37 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
1) | Includes gain on sale of Sony Ericsson SEK 7.7 billion in Q1 2012 |
2) | Negatively impacted by a non-cash charge related to ST-Ericsson of SEK -8.0 billion in Q4 2012 |
3) | Based on Net income attributable to stockholders of the Parent Company |
Ericsson First Quarter Report 2013 | 21 |
CONSOLIDATED STATEMENT OF CASH FLOWS - ISOLATED QUARTERS
2012 | 2013 | |||||||||||||||||||
Isolated quarters, SEK million |
Q1 | Q2 | Q3 | Q4 | Q1 | |||||||||||||||
Operating activities |
||||||||||||||||||||
Net income |
8,804 | 1,205 | 2,184 | -6,255 | 1,204 | |||||||||||||||
Adjustments to reconcile net income to cash |
||||||||||||||||||||
Taxes |
-1,118 | -1,185 | -886 | 2,049 | -1,849 | |||||||||||||||
Earnings/dividends in JV and associated companies |
1,290 | 1,193 | 579 | 8,707 | 33 | |||||||||||||||
Depreciation, amortization and impairment losses |
2,315 | 2,401 | 2,394 | 2,779 | 2,411 | |||||||||||||||
Other |
-7,022 | -466 | 413 | -366 | -201 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
4,269 | 3,148 | 4,684 | 6,914 | 1,598 | ||||||||||||||||
Changes in operating net assets |
||||||||||||||||||||
Inventories |
-59 | 43 | -650 | 3,418 | -1,426 | |||||||||||||||
Customer finance, current and non-current |
282 | | -164 | -1,377 | 260 | |||||||||||||||
Trade receivables |
3,722 | -5,427 | 2,882 | -2,280 | -1,934 | |||||||||||||||
Trade payables |
-2,713 | 1,717 | -1,455 | 1,140 | -2,948 | |||||||||||||||
Provisions and post-employment benefits |
-1,771 | -353 | -175 | 379 | 1,155 | |||||||||||||||
Other operating assets and liabilities, net |
-2,999 | -492 | 1,851 | 7,497 | 325 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
-3,538 | -4,512 | 2,289 | 8,777 | -4,568 | ||||||||||||||||
Cash flow from operating activities |
731 | -1,364 | 6,973 | 15,691 | -2,970 | |||||||||||||||
Investing activities |
||||||||||||||||||||
Investments in property, plant and equipment |
-1,648 | -994 | -1,461 | -1,326 | -1,196 | |||||||||||||||
Sales of property, plant and equipment |
309 | -10 | 17 | 252 | 91 | |||||||||||||||
Acquisitions/divestments of subsidiaries and other operations, net |
-1,730 | 1) | -110 | -357 | 120 | -136 | ||||||||||||||
Product development |
-251 | -525 | -435 | -430 | -282 | |||||||||||||||
Other investing activities |
195 | -520 | 1,652 | 213 | 298 | |||||||||||||||
Short-term investments |
-3,999 | 8,133 | -938 | -1,045 | -2,860 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Cash flow from investing activities |
-7,124 | 5,974 | -1,522 | -2,216 | -4,085 | |||||||||||||||
Cash flow before financing activities |
-6,393 | 4,610 | 5,451 | 13,475 | -7,055 | |||||||||||||||
Financing activities |
||||||||||||||||||||
Dividends paid |
| -8,252 | -381 | 1 | -61 | |||||||||||||||
Other financing activities |
-1,318 | 1,112 | 1,062 | -1,609 | 92 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Cash flow from financing activities |
-1,318 | -7,140 | 681 | -1,608 | 31 | |||||||||||||||
Effect of exchange rate changes on cash |
-327 | 599 | -1,994 | -30 | -214 | |||||||||||||||
Net change in cash |
-8,038 | -1,931 | 4,138 | 11,837 | -7,238 | |||||||||||||||
Cash and cash equivalents, beginning of period |
38,676 | 30,638 | 28,707 | 32,845 | 44,682 | |||||||||||||||
Cash and cash equivalents, end of period |
30,638 | 28,707 | 32,845 | 44,682 | 37,444 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
1) | Includes payment of external loan of SEK -6.2 billion attributable to the acquisition of Telcordia in Q1 2012 |
Ericsson First Quarter Report 2013 | 22 |
PARENT COMPANY INCOME STATEMENT
Jan - Mar | Jan - Dec | |||||||||||
SEK million |
2012 | 2013 | 2012 | |||||||||
Net sales |
| | | |||||||||
Cost of sales |
| | | |||||||||
|
|
|
|
|
|
|||||||
Gross income |
| | | |||||||||
Operating expenses |
-147 | -256 | -931 | |||||||||
Other operating income and expenses |
561 | 640 | 2,534 | |||||||||
|
|
|
|
|
|
|||||||
Operating income |
414 | 384 | 1,603 | |||||||||
Financial net |
4,720 | 792 | -6,461 | |||||||||
|
|
|
|
|
|
|||||||
Income after financial items |
5,134 | 1,176 | -4,858 | |||||||||
Transfers to (-) / from untaxed reserves |
| | -1,646 | |||||||||
Taxes |
-109 | -119 | -289 | |||||||||
|
|
|
|
|
|
|||||||
Net income |
5,025 | 1,057 | -6,793 | |||||||||
|
|
|
|
|
|
STATEMENT OF COMPREHENSIVE INCOME
Jan - Mar | Jan - Dec | |||||||||||
SEK million |
2012 | 2013 | 2012 | |||||||||
Net income |
5,025 | 1,057 | -6,793 | |||||||||
Cash flow hedges |
||||||||||||
Gains/losses arising during the period |
-64 | | -64 | |||||||||
Adjustments for amounts transferred to initial carrying amount of hegded items |
-139 | | -139 | |||||||||
Tax on items reported directly in or transferred from equity |
| | | |||||||||
|
|
|
|
|
|
|||||||
Other comprehensive income |
-203 | | -203 | |||||||||
|
|
|
|
|
|
|||||||
Total comprehensive income |
4,822 | 1,057 | -6,996 | |||||||||
|
|
|
|
|
|
SEK million |
Dec 31 2012 |
Mar 31 2013 |
||||||
ASSETS |
||||||||
Fixed assets |
||||||||
Intangible assets |
849 | 795 | ||||||
Tangible assets |
535 | 522 | ||||||
Financial assets |
99,530 | 93,328 | ||||||
|
|
|
|
|||||
100,914 | 94,645 | |||||||
Current assets |
||||||||
Inventories |
55 | 17 | ||||||
Receivables 1) |
21,694 | 20,157 | ||||||
Short-term investments |
31,491 | 33,454 | ||||||
Cash and cash equivalents |
25,946 | 19,244 | ||||||
|
|
|
|
|||||
79,186 | 72,872 | |||||||
Total assets |
180,100 | 167,517 | ||||||
|
|
|
|
|||||
STOCKHOLDERS' EQUITY, PROVISIONS AND LIABILITIES |
||||||||
Equity |
||||||||
Restricted equity |
48,018 | 48,018 | ||||||
Non-restricted equity |
25,624 | 26,707 | ||||||
|
|
|
|
|||||
73,642 | 74,725 | |||||||
Untaxed reserves |
288 | 288 | ||||||
Provisions |
4,095 | 4,089 | ||||||
Non-current liabilities |
48,763 | 45,811 | ||||||
Current liabilities |
53,312 | 42,604 | ||||||
Total stockholders' equity, provisions and liabilities |
180,100 | 167,517 | ||||||
|
|
|
|
|||||
Assets pledged as collateral |
520 | 534 | ||||||
Contingent liabilities |
16,719 | 16,514 | ||||||
|
|
|
|
1) | Including loan to ST-Ericsson of SEK 540 million as of March 31, 2013 (SEK 0 million as of December 31, 2012) |
Ericsson First Quarter Report 2013 | 23 |
The Group
This interim report is prepared in accordance with IAS 34. The term IFRS used in this document refers to the application of IAS and IFRS as well as interpretations of these standards as issued by IASBs Standards Interpretation Committee (SIC) and IFRS Interpretations Committee (IFRIC). The accounting policies adopted are consistent with those of the annual report for the year ended December 31, 2012, and should be read in conjunction with that annual report.
Change of hedge accounting
Due to cost efficiency reasons Ericsson has changed the hedge accounting.
Ericsson hedges highly probable forecast transactions related to sales and purchases with the purpose to limit the impact related to currency fluctuations on these forecasted transactions. This will not be changed.
Ericsson has, however, decided to discontinue hedge accounting for this type of hedges. Until 2012 Ericsson applied cash flow hedge accounting for highly probable forecast transactions. Revaluation of these hedges (incepted prior to January 1, 2013) are prior to release reported under Other comprehensive income (OCI) and is at release recycled to sales, cost of sales and R&D expenses respectively.
As from 2013, revaluation of new hedges (inception as from January 1, 2013) are reported under Other operating income and expenses in the Income statement.
As from January 1, 2013, the Company has applied the following new or amended IFRSs and IFRICs:
Amendment to IAS 1, Financial statement presentation regarding Other comprehensive income. The main change resulting from this amendment is a requirement for entities to group items presented in other comprehensive income (OCI) on the basis of whether they are potentially recycle to profit or loss subsequently (reclassification adjustments). The amendment does not address which items are presented in OCI.
Amendment to IAS 19, Employee benefits eliminates the corridor approach and calculates finance costs on a net funding basis. The Company implemented the immediate and full recognition of actuarial gains/losses in other Other comprehensive income (OCI) in 2006, meaning that the corridor method has not been applied by the Company as from that date and therefore the transition to the revised IAS 19 has not had an effect on the present obligation. The main issue to address is the implementation of the net interest cost/gain, which integrates the interest cost and expected return on assets to be based on a common discount rate. An analysis of fiscal year 2012 in relation to this amendment indicated an impact on pension costs for 2012 with an increase of approximately SEK 0.4 (0.1) billion. The Company also needs to address the taxes to be incorporated into the defined benefit obligation. This amendment relates to the Swedish special payroll taxes to be reclassified from Other current liabilities to Post-employment benefits with an estimated amount of SEK 1.8 (1.8) billion as per December 31, 2012 *. The amendment also includes additional disclosure requirements on yearly financial and demographic assumptions, sensitivity analysis, duration and multi-employer plans.
Amendment to IFRS 7, Financial instruments: Disclosures on asset and liability offsetting. This amendment requires disclosure of gross amounts related to financial instruments for which offset has been made.
* | See also footnote under the balance sheet. |
Ericsson First Quarter Report 2013 | 24 |
Accounting policies (continued)
IFRS 10, Consolidated financial statements. The objective of IFRS 10 is to establish principles for the presentation and preparation of consolidated financial statements when an entity controls one or more other entities to present consolidated financial statements. It defines the principle of control, and establishes control as the basis for consolidation. It sets out how to apply the principle of control to identify whether an investor controls an investee and therefore must consolidate the investee. An entity controls an investee if the entity has power over the investee, has the ability to use the power and is exposed to variable returns. It also sets out the accounting requirements for the preparation of consolidated financial statements.
IFRS 11, Joint arrangements is a more realistic reflection of joint arrangements by focusing on the rights and obligations of the arrangement rather than its legal form. There are two types of joint arrangement: joint operations and joint ventures. Proportional consolidation of joint ventures is no longer allowed. The Company did not apply the proportionate consolidation method prior to 2013.
IFRS 12, Disclosures of interests in other entities includes the disclosure requirements for all forms of interests in other entities, including joint arrangements, associates, structured entities and other off balance sheet vehicles.
IFRS 13, Fair value measurement does not extend the use of fair value accounting but provide guidance on how it should be applied where its use is already required or permitted by other standards within IFRS. This standard has also added disclosure requirements in IAS 34, Interim Financial Reporting regarding the disclosure for financial instruments.
IAS 27 (revised 2011), Separate financial statements includes the provisions on separate financial statements that are left after the control provisions of IAS 27 have been included in the new IFRS 10.
IAS 28 (revised 2011), Associates and joint ventures includes the requirements for joint ventures, as well as associates, to be equity accounted following the issue of IFRS 11.
None of the new or amended standards and interpretations has had any significant impact on the financial result or position of the Company. There is no difference between IFRS effective as per March 31, 2013 and IFRS as endorsed by the EU.
Disclosures required by the IASB on an interim basis as from 2013
Fair valuation of financial instruments
The fair value of the Companys financial instruments, recognized at fair value, is determined based on quoted market prices or rates. Financial instruments, measured according to the category Fair value through profit or loss showed a net fair value measurement positive effect of SEK 1.1 billion. The amount is recognized in the balance sheet as per March 31, 2013.
Book value for Notes and bond loans amount to SEK 16.2 billion and fair value to SEK 16.7 billion. Fair values of Current part of non-current borrowings, Other borrowings non-current as well as Other financial instruments are not estimated to materially differ from book values.
For further information about valuation principles, please see Note C1, Significant accounting policies in the Annual Report of 2012.
Ericsson First Quarter Report 2013 | 25 |
NET SALES BY SEGMENT BY QUARTER
Segments Sony Ericsson and ST-Ericsson are reported in accordance with the equity method, thus their sales are not included.
2012 | 2013 | |||||||||||||||||||
Isolated quarters, SEK million |
Q1 | Q2 | Q3 | Q4 | Q1 | |||||||||||||||
Networks |
27,314 | 27,766 | 26,939 | 35,266 | 28,133 | |||||||||||||||
Global Services |
20,631 | 24,074 | 24,296 | 28,042 | 21,452 | |||||||||||||||
Of which Professional Services |
14,884 | 16,947 | 16,388 | 18,873 | 14,626 | |||||||||||||||
Of which Managed Services |
5,708 | 6,468 | 6,306 | 6,752 | 5,888 | |||||||||||||||
Of which Network Rollout |
5,747 | 7,127 | 7,908 | 9,169 | 6,826 | |||||||||||||||
Support Solutions |
3,029 | 3,479 | 3,315 | 3,628 | 2,447 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
50,974 | 55,319 | 54,550 | 66,936 | 52,032 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
2012 | 2013 | |||||||||||||||||||
Sequential change, percent |
Q1 | Q2 | Q3 | Q4 | Q1 | |||||||||||||||
Networks |
-18 | % | 2 | % | -3 | % | 31 | % | -20 | % | ||||||||||
Global Services |
-24 | % | 17 | % | 1 | % | 15 | % | -24 | % | ||||||||||
Of which Professional Services |
-18 | % | 14 | % | -3 | % | 15 | % | -23 | % | ||||||||||
Of which Managed Services |
-6 | % | 13 | % | -3 | % | 7 | % | -13 | % | ||||||||||
Of which Network Rollout |
-35 | % | 24 | % | 11 | % | 16 | % | -26 | % | ||||||||||
Support Solutions |
-11 | % | 15 | % | -5 | % | 9 | % | -33 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
-20 | % | 9 | % | -1 | % | 23 | % | -22 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
2012 | 2013 | |||||||||||||||||||
Year over year change, percent |
Q1 | Q2 | Q3 | Q4 | Q1 | |||||||||||||||
Networks |
-18 | % | -17 | % | -17 | % | 6 | % | 3 | % | ||||||||||
Global Services |
18 | % | 26 | % | 19 | % | 4 | % | 4 | % | ||||||||||
Of which Professional Services |
18 | % | 26 | % | 11 | % | 4 | % | -2 | % | ||||||||||
Of which Managed Services |
16 | % | 37 | % | 19 | % | 12 | % | 3 | % | ||||||||||
Of which Network Rollout |
18 | % | 28 | % | 38 | % | 3 | % | 19 | % | ||||||||||
Support Solutions |
33 | % | 47 | % | 29 | % | 6 | % | -19 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
-4 | % | 1 | % | -2 | % | 5 | % | 2 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
2012 | 2013 | |||||||||||||||||||
Year to date, SEK million |
Jan - Mar | Jan - Jun | Jan - Sep | Jan - Dec | Jan - Mar | |||||||||||||||
Networks |
27,314 | 55,080 | 82,019 | 117,285 | 28,133 | |||||||||||||||
Global Services |
20,631 | 44,705 | 69,001 | 97,043 | 21,452 | |||||||||||||||
Of which Professional Services |
14,884 | 31,830 | 48,219 | 67,092 | 14,626 | |||||||||||||||
Of which Managed Services |
5,708 | 12,176 | 18,482 | 25,234 | 5,888 | |||||||||||||||
Of which Network Rollout |
5,747 | 12,875 | 20,782 | 29,951 | 6,826 | |||||||||||||||
Support Solutions |
3,029 | 6,508 | 9,823 | 13,451 | 2,447 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
50,974 | 106,293 | 160,843 | 227,779 | 52,032 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Year to date, | 2012 | 2013 | ||||||||||||||||||
year over year change, percent |
Jan - Mar | Jan - Jun | Jan - Sep | Jan - Dec | Jan - Mar | |||||||||||||||
Networks |
-18 | % | -17 | % | -17 | % | -11 | % | 3 | % | ||||||||||
Global Services |
18 | % | 23 | % | 21 | % | 16 | % | 4 | % | ||||||||||
Of which Professional Services |
18 | % | 22 | % | 18 | % | 14 | % | -2 | % | ||||||||||
Of which Managed Services |
16 | % | 26 | % | 24 | % | 20 | % | 3 | % | ||||||||||
Of which Network Rollout |
18 | % | 23 | % | 29 | % | 20 | % | 19 | % | ||||||||||
Support Solutions |
33 | % | 40 | % | 36 | % | 26 | % | -19 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
-4 | % | -1 | % | -1 | % | 0 | % | 2 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
SALES GROWTH FOR COMPARABLE UNITS, ADJUSTED FOR CURRENCY EFFECTS AND HEDGING
2012 | 2013 | |||||||||||||||||||
Sequential change, percent |
Q1 | Q2 | Q3 | Q4 | Q1 | |||||||||||||||
Networks |
-19 | % | -1 | % | 0 | % | 33 | % | -17 | % | ||||||||||
Global Services |
-25 | % | 15 | % | 3 | % | 16 | % | -20 | % | ||||||||||
Support Solutions |
-25 | % | 13 | % | -3 | % | 21 | % | -30 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
-22 | % | 6 | % | 1 | % | 24 | % | -19 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Isolated quarter, | 2012 | 2013 | ||||||||||||||||||
Year over year change, percent |
Q1 | Q2 | Q3 | Q4 | Q1 | |||||||||||||||
Networks |
-18 | % | -20 | % | -17 | % | 9 | % | 7 | % | ||||||||||
Global Services |
14 | % | 18 | % | 16 | % | 4 | % | 9 | % | ||||||||||
Support Solutions |
12 | % | 16 | % | 4 | % | 4 | % | -3 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
-6 | % | -6 | % | -4 | % | 5 | % | 7 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Year to date, | 2012 | 2013 | ||||||||||||||||||
year over year change, percent |
Jan - Mar | Jan - Jun | Jan - Sep | Jan - Dec | Jan - Mar | |||||||||||||||
Networks |
-18 | % | -19 | % | -18 | % | -12 | % | 7 | % | ||||||||||
Global Services |
14 | % | 16 | % | 16 | % | 12 | % | 9 | % | ||||||||||
Support Solutions |
12 | % | 14 | % | 10 | % | 9 | % | -3 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
-6 | % | -6 | % | -5 | % | -2 | % | 7 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
Ericsson First Quarter Report 2013 | 26 |
OPERATING INCOME BY SEGMENT BY QUARTER
2012 | 2013 | |||||||||||||||||||
Isolated quarters, SEK million |
Q1 | Q2 | Q3 | Q4 | Q1 | |||||||||||||||
Networks |
1,649 | 1,255 | 1,341 | 2,812 | 1,565 | |||||||||||||||
Global Services |
1,267 | 1,362 | 1,835 | 1,762 | 726 | |||||||||||||||
Of which Professional Services |
1,908 | 2,142 | 2,293 | 2,768 | 1,837 | |||||||||||||||
Of which Network Rollout |
-641 | -780 | -458 | -1,006 | -1,111 | |||||||||||||||
Support Solutions |
-28 | 420 | 480 | 278 | -29 | |||||||||||||||
Unallocated 1) |
-97 | -43 | 6 | -133 | -156 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Subtotal Segments excluding Sony Ericsson and ST-Ericsson |
2,791 | 2,994 | 3,662 | 4,719 | 2,106 | |||||||||||||||
Sony Ericsson |
7,691 | 2) | 347 | -1 | -11 | | ||||||||||||||
ST-Ericsson |
-1,395 | -1,263 | -565 | -8,511 | 3) | | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Subtotal Sony Ericsson and ST-Ericsson |
6,296 | -916 | -566 | -8,522 | | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
9,087 | 2,078 | 3,096 | -3,803 | 2,106 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
2012 | 2013 | |||||||||||||||||||
Year to date, SEK million |
Jan - Mar | Jan - Jun | Jan - Sep | Jan - Dec | Jan - Mar | |||||||||||||||
Networks |
1,649 | 2,904 | 4,245 | 7,057 | 1,565 | |||||||||||||||
Global Services |
1,267 | 2,629 | 4,464 | 6,226 | 726 | |||||||||||||||
Of which Professional Services |
1,908 | 4,050 | 6,343 | 9,111 | 1,837 | |||||||||||||||
Of which Network Rollout |
-641 | -1,421 | -1,879 | -2,885 | -1,111 | |||||||||||||||
Support Solutions |
-28 | 392 | 872 | 1,150 | -29 | |||||||||||||||
Unallocated 1) |
-97 | -140 | -134 | -267 | -156 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Subtotal Segments excluding Sony Ericsson and ST-Ericsson |
2,791 | 5,785 | 9,447 | 14,166 | 2,106 | |||||||||||||||
Sony Ericsson |
7,691 | 2) | 8,038 | 8,037 | 8,026 | | ||||||||||||||
ST-Ericsson |
-1,395 | -2,658 | -3,223 | -11,734 | 3) | | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Subtotal Sony Ericsson and ST-Ericsson |
6,296 | 5,380 | 4,814 | -3,708 | | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
9,087 | 11,165 | 14,261 | 10,458 | 2,106 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
OPERATING MARGIN BY SEGMENT BY QUARTER
As percentage of net sales, isolated quarters |
2012 | 2013 | ||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | ||||||||||||||||
Networks |
6 | % | 5 | % | 5 | % | 8 | % | 6 | % | ||||||||||
Global Services |
6 | % | 6 | % | 8 | % | 6 | % | 3 | % | ||||||||||
Of which Professional Services |
13 | % | 13 | % | 14 | % | 15 | % | 13 | % | ||||||||||
Of which Network Rollout |
-11 | % | -11 | % | -6 | % | -11 | % | -16 | % | ||||||||||
Support Solutions |
-1 | % | 12 | % | 14 | % | 8 | % | -1 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Subtotal excluding Sony Ericsson and ST-Ericsson |
5 | % | 5 | % | 7 | % | 7 | % | 4 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
As percentage of net sales, Year to date |
2012 | 2013 | ||||||||||||||||||
Jan - Mar | Jan - Jun | Jan - Sep | Jan - Dec | Jan - Mar | ||||||||||||||||
Networks |
6 | % | 5 | % | 5 | % | 6 | % | 6 | % | ||||||||||
Global Services |
6 | % | 6 | % | 6 | % | 6 | % | 3 | % | ||||||||||
Of which Professional Services |
13 | % | 13 | % | 13 | % | 14 | % | 13 | % | ||||||||||
Of which Network Rollout |
-11 | % | -11 | % | -9 | % | -10 | % | -16 | % | ||||||||||
Support Solutions |
-1 | % | 6 | % | 9 | % | 9 | % | -1 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Subtotal excluding Sony Ericsson and ST-Ericsson |
5 | % | 5 | % | 6 | % | 6 | % | 4 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
1) | Unallocated consists mainly of costs for corporate staff, non-operational capital gains and losses |
2) | Includes gain on sale of Sony Ericsson SEK 7.7 billion in Q1 2012 |
3) | Negatively impacted by a non-cash charge related to ST-Ericsson of SEK -8.0 billion in Q4 2012 |
Ericsson First Quarter Report 2013 | 27 |
2012 | 2013 | |||||||||||||||||||
Isolated quarters, SEK million |
Q1 | Q2 | Q3 | Q4 | Q1 | |||||||||||||||
Networks |
2,343 | 1,994 | 2,075 | 3,595 | 2,302 | |||||||||||||||
Global Services |
1,464 | 1,594 | 2,050 | 1,974 | 942 | |||||||||||||||
Of which Professional Services |
2,086 | 2,320 | 2,438 | 2,925 | 2,009 | |||||||||||||||
Of which Network Rollout |
-622 | -726 | -389 | -951 | -1,067 | |||||||||||||||
Support Solutions |
236 | 608 | 624 | 427 | 118 | |||||||||||||||
Unallocated 1) |
-96 | -42 | 6 | -131 | -155 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Subtotal Segments excluding Sony Ericsson and ST-Ericsson |
3,947 | 4,154 | 4,755 | 5,865 | 3,207 | |||||||||||||||
Sony Ericsson |
7,691 | 2) | 347 | -1 | -11 | | ||||||||||||||
ST-Ericsson |
-1,395 | -1,263 | -565 | -8,511 | 3) | | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Subtotal Sony Ericsson and ST-Ericsson |
6,296 | -916 | -566 | -8,522 | | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
10,243 | 3,238 | 4,189 | -2,657 | 3,207 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
2012 | 2013 | |||||||||||||||||||
Year to date, SEK million |
Jan - Mar | Jan - Jun | Jan - Sep | Jan - Dec | Jan - Mar | |||||||||||||||
Networks |
2,343 | 4,337 | 6,411 | 10,007 | 2,302 | |||||||||||||||
Global Services |
1,464 | 3,058 | 5,108 | 7,082 | 942 | |||||||||||||||
Of which Professional Services |
2,086 | 4,406 | 6,845 | 9,769 | 2,009 | |||||||||||||||
Of which Network Rollout |
-622 | -1,348 | -1,736 | -2,687 | -1,067 | |||||||||||||||
Support Solutions |
236 | 844 | 1,468 | 1,895 | 118 | |||||||||||||||
Unallocated 1) |
-96 | -138 | -132 | -263 | -155 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Subtotal Segments excluding Sony Ericsson and ST-Ericsson |
3,947 | 8,101 | 12,856 | 18,721 | 3,207 | |||||||||||||||
Sony Ericsson |
7,691 | 2) | 8,038 | 8,037 | 8,026 | | ||||||||||||||
ST-Ericsson |
-1,395 | -2,658 | -3,223 | -11,734 | 3) | | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Subtotal Sony Ericsson and ST-Ericsson |
6,296 | 5,380 | 4,814 | -3,708 | | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
10,243 | 13,481 | 17,670 | 15,013 | 3,207 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
EBITA MARGIN BY SEGMENT BY QUARTER
2012 | 2013 | |||||||||||||||||||
As percentage of net sales, isolated quarters |
Q1 | Q2 | Q3 | Q4 | Q1 | |||||||||||||||
Networks |
9 | % | 7 | % | 8 | % | 10 | % | 8 | % | ||||||||||
Global Services |
7 | % | 7 | % | 8 | % | 7 | % | 4 | % | ||||||||||
Of which Professional Services |
14 | % | 14 | % | 15 | % | 15 | % | 14 | % | ||||||||||
Of which Network Rollout |
-11 | % | -10 | % | -5 | % | -10 | % | -16 | % | ||||||||||
Support Solutions |
8 | % | 17 | % | 19 | % | 12 | % | 5 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Subtotal excluding Sony Ericsson and ST-Ericsson |
8 | % | 8 | % | 9 | % | 9 | % | 6 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
2012 | 2013 | |||||||||||||||||||
As percentage of net sales, year to date |
Jan - Mar | Jan - Jun | Jan - Sep | Jan - Dec | Jan - Mar | |||||||||||||||
Networks |
9 | % | 8 | % | 8 | % | 9 | % | 8 | % | ||||||||||
Global Services |
7 | % | 7 | % | 7 | % | 7 | % | 4 | % | ||||||||||
Of which Professional Services |
14 | % | 14 | % | 14 | % | 15 | % | 14 | % | ||||||||||
Of which Network Rollout |
-11 | % | -10 | % | -8 | % | -9 | % | -16 | % | ||||||||||
Support Solutions |
8 | % | 13 | % | 15 | % | 14 | % | 5 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Subtotal excluding Sony Ericsson and ST-Ericsson |
8 | % | 8 | % | 8 | % | 8 | % | 6 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
1) | Unallocated consists mainly of costs for corporate staff, non-operational capital gains and losses |
2) | Includes gain on sale of Sony Ericsson SEK 7.7 billion in Q1 2012 |
3) | Negatively impacted by a non-cash charge related to ST-Ericsson of SEK -8.0 billion in Q4 2012 |
Ericsson First Quarter Report 2013 | 28 |
NET SALES BY REGION BY QUARTER
2012 | 2013 | |||||||||||||||||||
Isolated quarters, SEK million |
Q1 | Q2 | Q3 | Q4 | Q1 | |||||||||||||||
North America |
12,775 | 12,987 | 14,037 | 16,950 | 15,773 | |||||||||||||||
Latin America |
4,822 | 5,243 | 5,424 | 6,517 | 4,374 | |||||||||||||||
Northern Europe & Central Asia 1) 2) |
2,292 | 3,358 | 2,697 | 2,998 | 2,283 | |||||||||||||||
Western & Central Europe 2) |
4,306 | 4,094 | 3,630 | 5,448 | 4,349 | |||||||||||||||
Mediterranean 2) |
4,620 | 6,214 | 5,401 | 7,064 | 5,271 | |||||||||||||||
Middle East |
3,157 | 3,701 | 3,637 | 5,061 | 3,160 | |||||||||||||||
Sub Saharan Africa |
2,200 | 2,791 | 2,800 | 3,558 | 2,131 | |||||||||||||||
India |
1,421 | 1,700 | 1,737 | 1,602 | 1,606 | |||||||||||||||
North East Asia |
9,154 | 8,423 | 8,373 | 10,246 | 6,054 | |||||||||||||||
South East Asia & Oceania |
3,374 | 3,674 | 3,505 | 4,515 | 4,129 | |||||||||||||||
Other 1) 2) |
2,853 | 3,134 | 3,309 | 2,977 | 2,902 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
50,974 | 55,319 | 54,550 | 66,936 | 52,032 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
1) Of which Sweden |
834 | 1,282 | 1,649 | 1,268 | 1,020 | |||||||||||||||
2) Of which EU |
9,502 | 11,201 | 10,604 | 12,923 | 9,782 | |||||||||||||||
2012 | 2013 | |||||||||||||||||||
Sequential change, percent |
Q1 | Q2 | Q3 | Q4 | Q1 | |||||||||||||||
North America |
14 | % | 2 | % | 8 | % | 21 | % | -7 | % | ||||||||||
Latin America |
-31 | % | 9 | % | 3 | % | 20 | % | -33 | % | ||||||||||
Northern Europe & Central Asia 1) 2) |
-39 | % | 47 | % | -20 | % | 11 | % | -24 | % | ||||||||||
Western & Central Europe 2) |
-18 | % | -5 | % | -11 | % | 50 | % | -20 | % | ||||||||||
Mediterranean 2) |
-44 | % | 35 | % | -13 | % | 31 | % | -25 | % | ||||||||||
Middle East |
-39 | % | 17 | % | -2 | % | 39 | % | -38 | % | ||||||||||
Sub Saharan Africa |
-32 | % | 27 | % | 0 | % | 27 | % | -40 | % | ||||||||||
India |
-7 | % | 20 | % | 2 | % | -8 | % | 0 | % | ||||||||||
North East Asia |
-16 | % | -8 | % | -1 | % | 22 | % | -41 | % | ||||||||||
South East Asia & Oceania |
-16 | % | 9 | % | -5 | % | 29 | % | -9 | % | ||||||||||
Other 1) 2) |
-14 | % | 10 | % | 6 | % | -10 | % | -3 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
-20 | % | 9 | % | -1 | % | 23 | % | -22 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
1) Of which Sweden |
-8 | % | 54 | % | 29 | % | -23 | % | -20 | % | ||||||||||
2) Of which EU |
-29 | % | 18 | % | -5 | % | 22 | % | -24 | % | ||||||||||
2012 | 2013 | |||||||||||||||||||
Year-over-year change, percent |
Q1 | Q2 | Q3 | Q4 | Q1 | |||||||||||||||
North America |
-3 | % | 5 | % | 16 | % | 51 | % | 23 | % | ||||||||||
Latin America |
20 | % | 6 | % | -10 | % | -7 | % | -9 | % | ||||||||||
Northern Europe & Central Asia 1) 2) |
-32 | % | -26 | % | -24 | % | -21 | % | 0 | % | ||||||||||
Western & Central Europe 2) |
-10 | % | -6 | % | -21 | % | 3 | % | 1 | % | ||||||||||
Mediterranean 2) |
-4 | % | 12 | % | 3 | % | -14 | % | 14 | % | ||||||||||
Middle East |
3 | % | 4 | % | 0 | % | -3 | % | 0 | % | ||||||||||
Sub Saharan Africa |
-1 | % | 26 | % | 11 | % | 11 | % | -3 | % | ||||||||||
India |
-55 | % | -39 | % | -24 | % | 5 | % | 13 | % | ||||||||||
North East Asia |
6 | % | -7 | % | -13 | % | -6 | % | -34 | % | ||||||||||
South East Asia & Oceania |
9 | % | 21 | % | -6 | % | 13 | % | 22 | % | ||||||||||
Other 1) 2) |
9 | % | 27 | % | 49 | % | -10 | % | 2 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
-4 | % | 1 | % | -2 | % | 5 | % | 2 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
1) Of which Sweden |
-10 | % | 16 | % | 75 | % | 40 | % | 22 | % | ||||||||||
2) Of which EU |
-5 | % | 9 | % | 4 | % | -4 | % | 3 | % |
Ericsson First Quarter Report 2013 | 29 |
NET SALES BY REGION BY QUARTER (continued)
2012 | 2013 | |||||||||||||||||||
Year to date, SEK million |
Jan - Mar | Jan - Jun | Jan - Sep | Jan - Dec | Jan - Mar | |||||||||||||||
North America |
12,775 | 25,762 | 39,799 |