FORM 6-K
Table of Contents

 

 

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 registrant’s 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”

 

 

 


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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


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LOGO

ERICSSON

FIRST QUARTER

REPORT 2013


Table of Contents

Ericsson first quarter report 2013

APRIL 24, 2013

FIRST QUARTER HIGHLIGHTS

 

   

Sales in the quarter were SEK 52.0 b. For comparable units and adjusted for FX and hedging, sales increased 7% YoY and declined -19% QoQ.

 

   

Operating income incl. JV was SEK 2.1 b. with an operating margin of 4.0%. Excluding the restructuring charges related to the reduction of operations in Sweden of SEK 1.4 b. the margin amounted to 6.7%. Last year’s margin of 17.8% was positively impacted by a gain of SEK 7.7 b. from the divestment of Sony Ericsson.

 

   

Net income was SEK 1.2 (8.8) b.

 

   

EPS diluted was SEK 0.37 (2.76). EPS Non-IFRS was SEK 0.99 (3.14).

  CONTENTS   
3          Financial highlights   
5   Segment results   
9         

Regional sales overview

  
11       

Parent Company information

  
12       

Other information

  
13       

Assessment of risk environment

  
14       

Editor’s note

  
15       

Safe harbor statement

  
16  

Financial statements and additional information

  
 
   

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
 

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     —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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     —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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        —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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


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Comments from Hans vestberg, president and ceo

“Sales showed positive development in the quarter with a growth of 2% YoY, despite currency headwind. Sales for comparable units, adjusted for FX and hedging, grew 7%,” said Hans Vestberg, President and CEO of Ericsson (NASDAQ:ERIC).

“The sales increase was primarily driven by Networks and rollout services, following high project activities primarily in Europe and North America. North America remained the strongest region and showed a growth of 23% despite the decline in CDMA. North East Asia had a challenging quarter with lower sales in South Korea, which remains one of the most advanced LTE markets but without parallel 3G deployments as in Q112, continued structural decline in GSM investments in China and FX effects in Japan.

Looking at the areas of portfolio momentum, we see continued good development in Managed Services with 21 new contracts signed during the quarter. Within the Mobile Broadband area, the vendor selection processes for 4G/LTE in Russia and China have been initiated. We also see continued momentum for our SSR routing platform with 12 new contracts in the quarter. Within OSS and BSS demand continued to be strong.

At the Mobile World Congress (MWC) in Barcelona the trends in focus verify our belief that the Networked Society is coming to life. The growth in data traffic and video in the networks drives demand for mobile broadband and OSS and BSS. Other key topics at the MWC were software defined networks, cloud and machine-to-machine communications that will all be part of shaping the industry for the coming years.

 

Profitability improved YoY, adjusted for the restructuring charges related to the reduction of operations in Sweden concluded in Q1 and last year’s gain from the divestment of Sony Ericsson. The improvement is mainly due to higher sales in Networks and a continued reduction in operating expenses, offset by negative operating income in Network Rollout and negative FX effects.

The underlying business mix, with a higher share of coverage projects than capacity projects, continued as anticipated during the quarter. With present visibility of customer demand, and current global economic development, we continue to believe that the underlying business mix will start to gradually shift towards more capacity projects during the second half of 2013.

We continue to execute on our strategy. During the quarter we announced the way forward for our JV ST-Ericsson and in April 2013 we announced our intention to acquire Microsoft’s Mediaroom to strengthen our media position.

While macroeconomic and political uncertainty continues in certain regions, the long-term fundamentals in the industry remain attractive and we are well positioned to continue to support our customers in a transforming ICT market,” concludes Vestberg.

 

 

Ericsson First Quarter Report 2013    2


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Financial highlights – first quarter

INCOME STATEMENT

 

LOGO

 

Sales for comparable units, adjusted for FX and hedging, increased 7% YoY and declined -19% sequentially. During the quarter, the SEK was further strengthened, negatively impacting sales especially in JPY and USD.

Networks sales increased 3% YoY, primarily driven by North America and South East Asia. Networks sales decreased -20% QoQ, partly due to lower sales in North East Asia, offset by continued high business activity in North America.

Global Services grew 4% YoY, driven by Network Rollout and decreased -24% QoQ, partly due to lower business activity in North East Asia and delays in LTE deployments in Latin America.

Support Solutions sales declined -19% YoY and -33% QoQ, mainly due to the divestment of Multimedia Brokering (IPX) in Q312 and negative FX effects.

Restructuring charges for the Group amounted to SEK 1.8 (0.6) b., of which SEK 1.4 b. related to the significant reduction of operations in Sweden. We also continued to execute on our service delivery strategy to move service delivery local resources to global centers, although at a slower pace this quarter.

Gross margin decreased YoY to 32.0% (33.3%), and increased from 31.1% Q412. The YoY decrease was due to lower Network Rollout margin and higher restructuring charges. This was partly offset by gradually declining effects from the network modernization projects in Europe, which also explain the sequential margin improvement.

With present visibility of customer demand, and current global economic development, we continue to believe that the underlying business mix will start to gradually shift towards more capacity projects during the second half of 2013. The negative impact from the network modernization projects in Europe will continue to gradually decline during 2013.

Total operating expenses increased YoY by SEK 0.3 b. to SEK 14.5 (14.2) b. due to increased restructuring charges in the quarter. Excluding acquisitions, divestments and restructuring charges, operating expenses were down -6% YoY. R&D expenses amounted to SEK 7.9 (8.0) b. and included restructuring charges of SEK 0.6 (0.0) b. Selling and general administrative expenses (SG&A) increased YoY to SEK 6.6 (6.2) b. due to restructuring charges of SEK 0.6 (0.1) b.

 

 

Ericsson First Quarter Report 2013    3


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Other operating income and expenses amounted to SEK 0.0 (7.7) b. Last year’s divestment of Sony Ericsson resulted in a gain of SEK 7.7 b. In the quarter we changed the hedge accounting for new hedges made 2013 and onwards (see Accounting Policies). The hedge effect on other operating income was SEK -0.1 b.

Ericsson’s share in ST-Ericsson’s income before tax was SEK 0.0 (-1.4) b.

Operating income, including JV, decreased to SEK 2.1 (9.1) b. mainly due to restructuring charges relating to the reduction of operations in Sweden and high 2012 comparison due to the gain related to the divestment of Sony Ericsson. Operating income was also negatively impacted by FX effects both YoY and QoQ. Operating margin including JV was 4.0% (17.8%).

Financial net amounted to SEK -0.4 (0.0) b. and decreased QoQ from SEK -0.1 b. mainly due to lower interest income and currency revaluation effects including impact from devaluation in Venezuela. Tax costs were SEK -0.5 (-0.3) b.

Net income decreased to SEK 1.2 (8.8) b. following the decline in operating income.

EPS diluted was SEK 0.37 (2.76). EPS Non-IFRS excluding the gain from divestment of Sony Ericsson in Q112 was SEK 0.99 (0.77).

 

 

BALANCE SHEET AND OTHER PERFORMANCE INDICATORS – FIRST QUARTER

 

LOGO

 

Trade receivables increased QoQ to SEK 65.1 (63.7) b. and inventory increased QoQ to SEK 29.8 (28.8) b., due to high business and project activities. Accounts payable decreased as a consequence of the high volumes in Q412.

Cash, cash equivalents and short-term investments amounted to SEK 72.1 (76.7) b. The net cash position decreased QoQ by SEK -6.3 b. to SEK 32.2 (38.5) b., primarily due to the negative operating cash flow and reclassification of Swedish special payroll taxes of SEK 1.8 b. from Other current liabilities to Pension liabilities in line with the implementation of IAS19R on January 1, 2013.

During the quarter, approximately SEK 0.8 b. of provisions were utilized, of which SEK 0.3 b. were related to restructuring. Additions of SEK 1.9 b. were made, of which SEK 1.6 b. related to restructuring. Reversals of SEK 0.2 b. were made.

The negative cash flow from operating activities was driven by increased working capital of SEK 4.6 b. Cash outlays for restructuring amounted to SEK 0.3 (0.4) b. Cash outlays of SEK 2.4 b. remain to be made from the restructuring provision.

The total number of employees decreased QoQ to 109,648 (110,255) due to continued efficiency improvements. The reduction of operations in Sweden had limited impact on headcount in Q1.

 

 

 

Ericsson First Quarter Report 2013    4


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Segment results

NETWORKS

 

LOGO

 

SEK b.

   Q1
2013
    Q1
2012
    YoY
Change
    Q4
2012
    QoQ
Change
 

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     —     

 

Sales for comparable units, adjusted for FX and hedging, increased 7% YoY supported by high mobile broadband deployment levels in the US and Indonesia. The structural decline in CDMA continued with -42% in the quarter to SEK 1.3 b. Sales declined QoQ due to the continued structural decline of GSM sales in China as well as declining sales in Japan, mainly due to FX effects. The business activity in North America remained high in the quarter.

The operator focus on monetizing their increasing data traffic is driving demand for mobile broadband including our 4th Generation IP solutions. There is good momentum for the SSR routing platform with 51 contracts signed since launch in December 2011, of which 12 new contracts were signed in Q1 2013.

The worldwide LTE radio access deployments continue to drive demand also for HSPA, packet core networks and VoLTE. In early February, Ericsson signed its 100th Evolved Packet Core (EPC) contract. We see a trend of higher adoption rate for software features as operators aim for differentiated services, higher network performance and increase their focus on cost effectiveness.

Operating margin was flat YoY, negatively impacted by restructuring charges related to reductions of operations in Sweden. Total restructuring charges in the quarter were SEK 1.3 (0.1) b. The operating margin decline QoQ was due to lower sales volumes. This was partly offset by reduced underlying operating expenses and the gradually decreasing negative effect from the network modernization projects in Europe.

 

 

Ericsson First Quarter Report 2013    5


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GLOBAL SERVICES

 

LOGO

 

SEK b.

   Q1
2013
    Q1
2012
    YoY
Change
    Q4
2012
    QoQ
Change
 

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
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating margin

     3     6     —          6     —     

Of which Professional Services

     13     13     —          15     —     

Of which Network Rollout

     -16     -11     —          -11     —     

 

Sales growth for comparable units, adjusted for FX and hedging, was 9% YoY, driven by Network Rollout with continued high activity in European modernization contracts and other coverage projects. Sales declined QoQ partly due to lower business activity in North East Asia and delays in LTE deployments in Latin America.

Professional Services sales were slightly down, impacted by currency headwind as well as lower Network Design & Optimization and Consulting & System Integration activities in the quarter.

The good momentum in Professional Services continues with 21 new Managed Services contracts signed in the quarter and eight new significant Consulting and Systems Integration contracts signed.

 

The IS/IT related Managed Services and Consulting and Systems Integration business is picking up speed driven by the ongoing business transformation in the industry.

Operating margin for Global Services decreased YoY as a result of increased losses in Network Rollout, partly due to continued high activity in the network modernization projects in Europe and delayed LTE rollouts in Latin America leading to additional project costs. Professional Services shows stable margin development.

Restructuring charges of SEK 0.4 (0.5) b. in the quarter had a negative impact on operating income.

 

 

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


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SUPPORT SOLUTIONS

 

LOGO

 

SEK b.

   Q1
2013
    Q1
2012
    YoY
Change
    Q4
2012
    QoQ
Change
 

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     —     

 

Sales growth for comparable units, adjusted for FX and hedging, was -3% YoY. Multimedia brokering (IPX) was divested in Q312, which impacted sales negatively YoY. IPX sales amounted to SEK 0.4 b in Q112. Demand for OSS and BSS continued to be strong, driven by operators’ focus on improving efficiency and adapting to mobile broadband business requirements. Media management sales declined YoY following a strong Q112 and a technology shift of our video compression portfolio.

We continue to implement our Support Solutions strategy communicated during Q112 with a more focused and concentrated portfolio. During the past year we have executed significant portfolio changes. On April 8, 2013, we announced our intention to

acquire Microsoft’s TV solution business Mediaroom, further strengthening our position in the growing media management market.

Operating margin was negatively impacted by restructuring charges and lower sales volumes. Efficiency improvements and portfolio streamlining contributed positively. Restructuring charges in the quarter were SEK 0.1 (0.0) b. which means that the underlying operating margin was positive.

The number of subscriptions served by Ericsson’s charging and billing solutions was 2.0 billion at end of period.

 

 

Ericsson First Quarter Report 2013    7


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ST-ERICSSON

 

USD m.

   Q1
2013
     Q1
2012
     YoY
Change
    Q4
2012
     QoQ
Change
 

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.

 

As announced on March 18, 2013, ST-Ericsson will be split between the parents. Ericsson will take on the design, development and sales of the LTE multimode thin modem business products, including 2G, 3G and 4G multimode. ST Microelectronics will take on the existing ST-Ericsson products, other than the LTE multimode thin modems and related business, as well as certain assembly and test facilities. The remaining parts of ST-Ericsson will be closed down. Both parents are assuming equal funding of the wind-down related activities. The formal transfer of the relevant parts of ST-Ericsson to the parent companies is expected to be completed during the third quarter of 2013, subject to regulatory approvals.

ST-Ericsson’s sales in the first quarter of 2013 decreased 28% sequentially to USD 256 million reflecting, as anticipated, seasonal factors, no revenues from licensing and softer market conditions. ST-Ericsson’s operating loss in the first quarter of 2013 was USD -158 million.

Ericsson’s share in ST-Ericsson’s income before tax was SEK 0.0 (-1.4) b. As of December 31, 2012 there are no remaining investments related to ST-Ericsson on Ericsson’s balance sheet and therefore no result from ST-Ericsson is included in Ericsson’s result.

In Q412, Ericsson made a provision of SEK 3.3 b. which provides for Ericsson’s share of obligations for the wind-down of ST-Ericsson. Ericsson incurred cash of SEK 0.5 b. in the quarter, which resulted in a net liability of SEK 2.8 b.

We are progressing as planned toward a Q313 transaction close to separate the thin modem business from ST-Ericsson and integrate into Ericsson. Our focus is on continued execution during the transition period and to continue engagement with customer development teams.

Once the multimode thin modem business has been fully integrated into Ericsson in Q413 the operation will continue to be reported as a segment. Our current best estimate is that it will generate operating losses of approximately SEK -0.5 b. in Q413 primarily related to R&D expenses.

 

 

Ericsson First Quarter Report 2013    8


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Regional sales overview

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
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total

     28.1         21.5         2.4         52.0         2     -22
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

 

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.

 

North America

Sales grew YoY with continued high activity levels with peaking volumes in one of the large mobile broadband coverage projects. CDMA equipment sales continued to decline.

Latin America

YoY sales were negatively impacted primarily by delays in LTE rollouts caused by issues related to LTE licenses, partly offset by YoY growth in OSS and BSS.

Northern Europe and Central Asia

Sales in the region were basically flat YoY with continued low investment levels in Russia. Operators in Russia are in the middle of the LTE vendor selection process, likely leading to initial deployments towards the latter part of 2013 or early 2014.

Western and Central Europe

Execution of the network modernization projects continued. Several new Managed Services contracts were signed in the quarter.

 

Mediterranean

Modernization projects and high project activity in France and Northwest Africa drove YoY growth. Macroeconomic development remained weak in parts of the region.

Middle East

Initial LTE deployments are ongoing, but from low levels. There is good demand for both OSS and BSS and professional services as operators seek differentiation and operational efficiencies. Political unrest prevails and is still impacting sales.

Sub-Saharan Africa

While 3G sales are increasing; the majority of sales is still related to 2G. The momentum for Managed Services continued with a multi-country contract signed in the quarter. Mobile broadband charging sales were strong in the quarter.

India

Operator spending remains cautious, principally because of sustained regulatory uncertainty. The momentum for Managed Services continued with a major contract signed in the quarter.

 

 

Ericsson First Quarter Report 2013    9


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North East Asia

Business activity declined YoY mainly due to lower sales in South Korea, continued structural decline in GSM investments in China and FX effects in Japan. South Korea remains one of the most advanced LTE markets, but the YoY comparison is impacted by the parallel 3G deployments in Q112. Sales were also impacted by delayed LTE spectrum auctions in South Korea.

South East Asia and Oceania

The business volume continued on a high level with simultaneous mobile broadband deployments in Indonesia, Australia and Thailand.

Other

IPX was divested at the end of Q312 impacting Support Solutions sales YoY comparison. Licensing revenues continued to show stable development YoY. Sales of broadcast services, cables, power modules and other businesses are also included in “Other”.

 

 

Ericsson First Quarter Report 2013    10


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Parent company information

 

Income after financial items was SEK 1.2 (5.1) b. The Parent Company’s financial position had the following major changes during the quarter; decreased cash, cash equivalents and short-term investments of SEK -4.7 b. and decreased current and non-current receivables from subsidiaries of SEK 6.7 b. At the end of the quarter, cash, cash equivalents and short-term investments amounted to SEK 52.7 (57.4) b.

By the end of the quarter ST-Ericsson had utilized USD 77 million (SEK 0.5 b.) of a short-term credit facility. In Q4 2012, Ericsson made a provision of SEK 3.3 b. which provides for Ericsson’s share of obligations for the wind-down of ST-Ericsson. Ericsson incurred cash of SEK 0.5 b. in the quarter, which resulted in a net liability of SEK 2.8 b.

In accordance with the conditions of the long-term variable remuneration program (LTV) for Ericsson employees, 2,588 932 shares from treasury stock were sold or distributed to employees during the first quarter. The holding of treasury stock at March 31, 2013, was 82,209,163 Class B shares.

 

 

Ericsson First Quarter Report 2013    11


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Other information

Samsung litigation

On November 27, 2012, Ericsson filed two patent infringement lawsuits in the US District Court for the Eastern District of Texas against Samsung. Ericsson seeks damages and an injunction. Ericsson also asked the Court to adjudge that Samsung breached its commitment to license any standard-essential patents it owns on fair, reasonable, and non-discriminatory terms and to declare Samsung’s allegedly standard essential patents to be unenforceable. On November 30, 2012, Ericsson filed a complaint with the US International Trade Commission (ITC) seeking an exclusion order blocking Samsung from importing certain products into the US. On December 21, 2012, Samsung filed a complaint with the ITC seeking an exclusion order blocking Ericsson from import of certain products into the US

On March 18, 2013, Samsung filed its answers and counterclaims in the Ericsson suits (above) in Texas, USA.

Airvana litigation

In February 2012, Airvana Networks Solutions Inc (Airvana) filed a complaint against Ericsson in the Supreme Court of the State of New York, USA, alleging that Ericsson has violated key contract terms and misappropriated Airvana trade secrets and proprietary information. Airvana is seeking damages of USD 330 million and to enjoin Ericsson from developing, deploying or commercializing Ericsson products allegedly based on Airvana’s proprietary technology.

On March 19, 2013 the Court issued a preliminary injunction barring Ericsson or any party in privity with Ericsson from using, operating, testing or deploying certain Airvana-based EV-DO hardware unless it is executing software that is licensed from Airvana.

The Court also confirmed that it will conduct a separate, related hearing starting in April on a second preliminary injunction motion filed by Airvana seeking to prevent deployment of the Digital Baseband Advanced (“DBA”) hardware with any EV-DO software other than Airvana’s.

Reduction of number of employees in Sweden

On March 27, 2013 the company announced the reductions of operations in Sweden. In total 1,399 positions were impacted with 919 employees notified. All sites in Sweden were affected except Falun, Hudiksvall, Kalmar and Katrineholm. Restructuring charges associated with these actions were SEK 1.4 b. impacting Group results in Q1, 2013.

Acquisition of Devoteam Telecom & Media operations

On January 21, 2013, Ericsson announced its intention to acquire Devoteam Telecom & Media operations in France. The completion of the acquisition is subject to consultation and customary closing conditions and is expected to take place by the beginning of Q2, 2013.

On new positions

As of April 1, 2013, Jan Signell is appointed Head of Region North East Asia and a member of Ericsson’s Global Leadership Team, reporting to Chairman of Asia-Pacific, Mats H Olsson. Jan Signell is currently Head of Customer Unit Japan within Region North East Asia, and will remain in this role until a successor is appointed.

As of June 3, 2013, Chris Houghton is appointed Head of Region India and a member of Ericsson’s Global Leadership Team, reporting to Chairman of Asia-Pacific, Mats H Olsson. Chris Houghton is currently Head of Customer Unit UK & Ireland.

POST-CLOSING EVENTS

Ericsson to acquire Microsoft Mediaroom

On April 8, 2013, Ericsson announced that the company has reached an agreement with Microsoft to acquire its TV solution Mediaroom business. This will make Ericsson the leading provider of IPTV and multi-screen solutions with a market share of over 25%. The agreement is subject to customary regulatory approvals and other conditions.

 

 

Ericsson First Quarter Report 2013    12


Table of Contents

Assessment of risk environment

 

Ericsson’s operational and financial risk factors and uncertainties along with our strategies and tactics to mitigate risk exposures or limit unfavorable outcomes are described in our Annual Report 2012. Compared to the risks described in the Annual Report 2012, no material, new or changed risk factors or uncertainties have been identified in the quarter.

Risk factors and uncertainties in focus short-term for the Parent Company and the Ericsson Group include:

 

 

Potential negative effects on operators’ willingness to invest in network development due to uncertainty in the financial markets and a weak economic business environment, or reduced consumer telecom spending, or increased pressure on us to provide financing;

 

 

Uncertainty regarding the financial stability of suppliers, for example due to lack of financing;

 

 

Effects on gross margins and/or working capital of the product mix in the Networks segment between sales of upgrades and expansions (mainly software) and new build-outs of coverage (mainly hardware);

 

 

Effects on gross margins of the product mix in the Global Services segment including proportion of new network build-outs and share of new managed services deals with initial transition costs;

 

 

A continued volatile sales pattern in the Support Solutions segment or variability in our overall sales seasonality could make it more difficult to forecast future sales;

 

 

Effects of the ongoing industry consolidation among our customers as well as between our largest competitors, e.g. with postponed investments and intensified price competition as a consequence;

 

 

Implementation of the strategic option for our joint venture ST-Ericsson and related capital need;

 

 

Changes in foreign exchange rates, in particular USD, JPY and EUR;

 

Political unrest or instability in certain markets;

 

 

Effects on production and sales from restrictions with respect to timely and adequate supply of materials, components and production capacity and other vital services on competitive terms;

 

 

Natural disasters and other events, affecting business, production, supply and transportation.

Ericsson stringently monitors the compliance with all relevant trade regulations and trade embargos applicable to dealings with customers operating in countries where there are trade restrictions or trade restrictions are discussed. Moreover, Ericsson operates globally in accordance with Group policies and directives for business ethics and conduct.

Stockholm, April 24, 2013

Telefonaktiebolaget LM Ericsson (publ)

Hans Vestberg, President and CEO

Org. Nr. 556016-0680

This report has not been reviewed by Telefonaktiebolaget LM Ericsson’s auditors.

Date for next report: July 18, 2013

 

 

Ericsson First Quarter Report 2013    13


Table of Contents

Editor’s note

 

Ericsson invites media, investors and analysts to a press conference at the Ericsson Studio, Grönlandsgången 4, Stockholm, at 09.00 (CET), April 24, 2013. An analysts, investors and media conference call will begin at 14.00 (CET).

Live webcast of the press conference and conference call as well as supporting slides will be available at www.ericsson.com/press and www.ericsson.com/investors

Video material will be published during the day on www.ericsson.com/press

For further information, please contact:

Helena Norrman, Senior Vice President,

Communications

Phone: +46 10 719 34 72

E-mail: investor.relations@ericsson.com or

media.relations@ericsson.com

Telefonaktiebolaget LM Ericsson (publ)

Org. number: 556016-0680

Torshamnsgatan 23

SE-164 83 Stockholm

Phone: +46 10 719 00 00

www.ericsson.com

Investors

Stefan Jelvin, Director,

Investor Relations

Phone: +46 10 714 20 39, +46 70 986 02 27

E-mail: investor.relations@ericsson.com

Åsa Konnbjer, Director,

Investor Relations

Phone: +46 10 713 39 28, +46 73 082 59 28

E-mail: investor.relations@ericsson.com

Rikard Tunedal, Director,

Investor Relations

Phone: +46 10 714 54 00, +46 761 005 400

E-mail: investor.relations@ericsson.com

Media

Ola Rembe, Vice President,

Head of External Communications

Phone: +46 10 719 97 27, +46 73 024 48 73

E-mail: media.relations@ericsson.com

Corporate Communications

Phone: +46 10 719 69 92

E-mail: media.relations@ericsson.com

 

 

Ericsson First Quarter Report 2013    14


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Safe harbor statement

 

All statements made or incorporated by reference in this release, other than statements or characterizations of historical facts, are forward-looking statements. These forward-looking statements are based on our current expectations, estimates and projections about our industry, management’s beliefs and certain assumptions made by us. Forward-looking statements can often be identified by words such as “anticipates”, “expects”, “intends”, “plans”, “predicts”, “believes”, “seeks”, “estimates”, “may”, “will”, “should”, “would”, “potential”, “continue”, and variations or negatives of these words, and include, among others, statements regarding: (i) strategies, outlook and growth prospects; (ii) positioning to deliver future plans and to realize potential for future growth; (iii) liquidity and capital resources and expenditure, and our credit ratings; (iv) growth in demand for our products and services; (v) our joint venture activities; (vi) economic outlook and industry trends; (vii) developments of our markets; (viii) the impact of regulatory initiatives; (ix) research and development expenditures; (x) the strength of our competitors; (xi) future cost savings; (xii) plans to launch new products and services; (xiii) assessments of risks; (xiv) integration of acquired businesses; (xv) compliance with rules and regulations and (xvi) infringements of intellectual property rights of others.

In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. These forward-looking statements speak only as of the date hereof and are based upon the information available to us at this time. Such information is subject to change, and we will not necessarily inform you of such changes. These statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict. Therefore, our actual results could differ materially and adversely from those expressed in any forward-looking statements as a result of various factors. Important factors that may cause such a difference for Ericsson include, but are not limited to: (i) material adverse changes in the markets in which we operate or in global economic conditions; (ii) increased product and price competition; (iii) reductions in capital expenditure by network operators; (iv) the cost of technological innovation and increased expenditure to improve quality of service; (v) significant changes in market share for our principal products and services; (vi) foreign exchange rate or interest rate fluctuations; and (vii) the successful implementation of our business and operational initiatives.

 

 

Ericsson First Quarter Report 2013    15


Table of Contents

Financial statements and additional information

 

Financial statements
17    Consolidated income statement
17    Statement of comprehensive income
18    Consolidated balance sheet
19    Consolidated statement of cash flows
20    Consolidated statement of changes in equity
21    Consolidated income statement - isolated quarters
22    Consolidated statement of cash flows - isolated quarters
23    Parent Company income statement
23    Parent Company balance sheet
Additional information
24    Accounting policies
25    Accounting policies (continued)
26    Net sales by segment by quarter
26    Sales growth for comparable units, adjusted for currency effects and hedging
27    Operating income by segment by quarter
27    Operating margin by segment by quarter
28    EBITA by segment by quarter
28    EBITA margin by segment by quarter
29    Net sales by region by quarter
30    Net sales by region by quarter (cont.)
30    Top 5 countries in sales
31    Net sales by region by segment
32    Provisions
32    Information on investments in assets subject to depreciation, amortizations, impairment and write-downs
32    Reconciliation table, non-IFRS measurements
33    Other information
33    Number of employees
34    Restructuring charges by function
34    Restructuring charges by segment
 

 

Ericsson First Quarter Report 2013    16


Table of Contents

CONSOLIDATED INCOME STATEMENT

 

     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   
  

 

 

   

 

 

   

 

 

   

 

 

 

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   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses

     -14,248        -14,520        2     -58,856   

Other operating income and expenses

     7,749 1)      20          8,965 1) 
  

 

 

   

 

 

   

 

 

   

 

 

 

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) 
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     9,087        2,106        -77     10,458   

Financial income

     262        180          1,708   

Financial expenses

     -273        -565          -1,984   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income after financial items

     9,076        1,721        -81     10,182   

Taxes

     -272        -517          -4,244   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     8,804        1,204        -86     5,938   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to:

        

- Stockholders of the Parent Company

     8,950        1,205          5,775   

- Non-controlling interests

     -146        -1          163   

Other information

        

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   
  

 

 

   

 

 

   

 

 

   

 

 

 

STATEMENT OF COMPREHENSIVE INCOME

 

     Jan - Mar      Jan - Dec  

SEK million

   2012      2013      2012  

Net income

     8,804         1,204         5,938   

Other comprehensive income

        

Items that will not be reclassified to profit or loss

        

Remeasurements of defined benefits pension plans incl. asset ceiling

     436         819         -451   

Revaluation of other investments in shares and participations

        

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

        

Cash flow hedges

        

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   
  

 

 

    

 

 

    

 

 

 

Total comprehensive income

     7,456         671         1,830   
  

 

 

    

 

 

    

 

 

 

Total comprehensive income attributable to:

        

Stockholders of the Parent Company

     7,650         693         1,716   

Non-controlling interests

     -194         -22         114   
  

 

 

    

 

 

    

 

 

 

 

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


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CONSOLIDATED BALANCE SHEET

 

     Dec 31      Mar 31  

SEK million

   2012      2013  

ASSETS

     

Non-current assets

     

Intangible assets

     

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

     

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   
  

 

 

    

 

 

 
     81,742         80,428   

Current assets

     

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   
  

 

 

    

 

 

 
     193,254         190,072   

Total assets

     274,996         270,500   
  

 

 

    

 

 

 

EQUITY AND LIABILITIES

     

Equity

     

Stockholders’ equity

     136,883         137,668   

Non-controlling interest in equity of subsidiaries

     1,600         1,501   
  

 

 

    

 

 

 
     138,483         139,169   

Non-current liabilities

     

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   
  

 

 

    

 

 

 
     39,109         40,705   

Current liabilities

     

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   
  

 

 

    

 

 

 
     97,404         90,626   

Total equity and liabilities

     274,996         270,500   
  

 

 

    

 

 

 

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   
  

 

 

    

 

 

 

 

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


Table of Contents

CONSOLIDATED STATEMENT OF CASH FLOWS

 

     Jan - Mar      Jan - Dec  

SEK million

   2012     2013      2012  

Operating activities

       

Net income

     8,804        1,204         5,938   

Adjustments to reconcile net income to cash

       

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   
  

 

 

   

 

 

    

 

 

 
     4,269        1,598         19,015   

Changes in operating net assets

       

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   
  

 

 

   

 

 

    

 

 

 
     -3,538        -4,568         3,016   

Cash flow from operating activities

     731        -2,970         22,031   

Investing activities

       

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   
  

 

 

   

 

 

    

 

 

 

Cash flow from investing activities

     -7,124        -4,085         -4,888   

Cash flow before financing activities

     -6,393        -7,055         17,143   

Financing activities

       

Dividends paid

     —          -61         -8,632   

Other financing activities

     -1,318        92         -753   
  

 

 

   

 

 

    

 

 

 

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   
  

 

 

   

 

 

    

 

 

 

 

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


Table of Contents

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   
  

 

 

    

 

 

    

 

 

 

Closing balance

     152,467         139,170         138,483   
  

 

 

    

 

 

    

 

 

 

 

Ericsson First Quarter Report 2013    20


Table of Contents

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   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses

     -14,248        -14,952        -13,270        -16,386        -14,520   

Other operating income and expenses

     7,749 1)      530        341        345        20   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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


Table of Contents

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


Table of Contents

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   
  

 

 

    

 

 

    

 

 

 

PARENT COMPANY BALANCE SHEET

 

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


Table of Contents

Accounting policies

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 IASB’s 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


Table of Contents

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 Company’s 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


Table of Contents

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


Table of Contents

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


Table of Contents

EBITA BY SEGMENT BY QUARTER

 

     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


Table of Contents

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


Table of Contents

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