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
July 19, 2016
Commission File Number
000-12033
LM ERICSSON TELEPHONE COMPANY
(Translation of registrants name into English)
Torshamnsgatan 21, 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 if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨
Announcement of LM Ericsson Telephone Company, July 19, 2016 regarding Ericsson reports second quarter results 2016.
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 Marketing & Communications Officer |
Date: July 19, 2016
SECOND QUARTER
REPORT 2016
Stockholm, July 19, 2016
SECOND QUARTER HIGHLIGHTS |
Read more | |||
| Sales as reported decreased by -11% YoY. Sales, adjusted for comparable units and currency, decreased by -7% YoY. Mobile broadband sales continued to decline particularly in markets impacted by a weak macro-economic environment. | 3 | ||
| Sales grew in South East Asia and Oceania. 4G sales in Mainland China and Networks sales in North America were stable. | 3 | ||
| The current sales trends and business mix are expected to prevail for the second half of the year. | 3 | ||
| Gross margin declined to 32.3% (33.2%) YoY, mainly due to a larger share of mobile broadband coverage business with lower hardware margins, and a higher share of services business. | 3 | ||
| Operating margin decreased to 5.1% (5.9%) YoY, mainly due to negative revaluation effects of currency hedge contracts and a lower gross margin, partly offset by lower operating expenses and restructuring charges. | 4 | ||
| Further actions are initiated to reduce cost, targeting a new annual run rate of operating expenses, excluding restructuring charges, of SEK 53 b. in the second half of 2017. | 3 | ||
| Cash flow from operating activities was SEK -0.7 (3.1) b. Cash flow from operating activities for the first six months was SEK -3.1 (-2.8) b. Full-year cash conversion target of more than 70% remains. | 9 |
SEK b. |
Q2 2016 |
Q2 2015 |
YoY change |
Q1 2016 |
QoQ change |
6 months 2016 |
6 months 2015 |
|||||||||||||||||||||
Net sales |
54.1 | 60.7 | -11 | % | 52.2 | 4 | % | 106.3 | 114.2 | |||||||||||||||||||
Sales growth adj. for comparable units and currency |
| | -7 | % | | 6 | % | -4 | % | -6 | % | |||||||||||||||||
Gross margin |
32.3 | % | 33.2 | % | | 33.3 | % | | 32.8 | % | 34.2 | % | ||||||||||||||||
Gross margin excluding restructuring charges |
33.2 | % | 35.1 | % | | 33.9 | % | | 33.6 | % | 35.7 | % | ||||||||||||||||
Operating income |
2.8 | 3.6 | -22 | % | 3.5 | -20 | % | 6.2 | 5.7 | |||||||||||||||||||
Operating income excluding restructuring charges |
3.8 | 6.3 | -40 | % | 4.1 | -8 | % | 7.9 | 9.1 | |||||||||||||||||||
Operating margin |
5.1 | % | 5.9 | % | | 6.7 | % | | 5.9 | % | 5.0 | % | ||||||||||||||||
Operating margin excluding restructuring charges |
7.0 | % | 10.4 | % | | 7.9 | % | | 7.4 | % | 7.9 | % | ||||||||||||||||
Net income |
1.6 | 2.1 | -26 | % | 2.1 | -26 | % | 3.7 | 3.6 | |||||||||||||||||||
EPS diluted, SEK |
0.48 | 0.64 | -25 | % | 0.60 | -20 | % | 1.08 | 1.04 | |||||||||||||||||||
EPS (Non-IFRS), SEK 1) |
0.83 | 1.45 | -43 | % | 0.87 | -5 | % | 1.70 | 2.22 | |||||||||||||||||||
Cash flow from operating activities |
-0.7 | 3.1 | -123 | % | -2.4 | -70 | % | -3.1 | -2.8 | |||||||||||||||||||
Net cash, end of period 2) |
21.0 | 28.0 | -25 | % | 36.5 | -43 | % | 21.0 | 28.0 |
1) | EPS, diluted, excl. amortizations and write-downs of acquired intangible assets, and excluding restructuring charges. |
2) | The definition of Net cash is changed to exclude post-employment benefits, see accounting policies. |
Non-IFRS financial measures are reconciled to the most directly reconcilable line items in the financial statements at the end of this report.
1 Ericsson | Second Quarter Report 2016
CEO COMMENTS
2 Ericsson | Second Quarter Report 2016
FINANCIAL HIGHLIGHTS
SEK b. |
Q2 2016 |
Q2 2015 |
YoY change |
Q1 2016 |
QoQ change |
6 months 2016 |
6 months 2015 |
|||||||||||||||||||||
Net sales |
54.1 | 60.7 | -11 | % | 52.2 | 4 | % | 106.3 | 114.2 | |||||||||||||||||||
Of which Networks |
26.8 | 31.2 | -14 | % | 25.8 | 4 | % | 52.6 | 57.6 | |||||||||||||||||||
Of which Global Services |
24.5 | 26.4 | -7 | % | 23.0 | 6 | % | 47.5 | 50.3 | |||||||||||||||||||
Of which Support Solutions |
2.9 | 3.1 | -7 | % | 3.4 | -15 | % | 6.2 | 6.2 | |||||||||||||||||||
Of which Modems |
| 0.0 | | | | | 0.1 | |||||||||||||||||||||
Gross income |
17.5 | 20.1 | -13 | % | 17.4 | 1 | % | 34.9 | 39.1 | |||||||||||||||||||
Gross margin (%) |
32.3 | % | 33.2 | % | | 33.3 | % | | 32.8 | % | 34.2 | % | ||||||||||||||||
Research and development expenses |
-7.4 | -9.9 | -25 | % | -7.5 | -1 | % | -14.9 | -18.4 | |||||||||||||||||||
Selling and administrative expenses |
-7.1 | -7.8 | -8 | % | -6.7 | 6 | % | -13.8 | -14.9 | |||||||||||||||||||
Other operating income and expenses |
-0.2 | 1.1 | -122 | % | 0.3 | -184 | % | 0.0 | -0.2 | |||||||||||||||||||
Operating income |
2.8 | 3.6 | -22 | % | 3.5 | -20 | % | 6.2 | 5.7 | |||||||||||||||||||
Operating margin |
5.1 | % | 5.9 | % | | 6.7 | % | | 5.9 | % | 5.0 | % | ||||||||||||||||
for Networks |
6 | % | 8 | % | | 11 | % | | 8 | % | 5 | % | ||||||||||||||||
for Global Services |
6 | % | 6 | % | | 3 | % | | 4 | % | 7 | % | ||||||||||||||||
for Support Solutions |
-15 | % | -8 | % | | 7 | % | | -3 | % | -3 | % | ||||||||||||||||
for Modems |
| | | | | | | |||||||||||||||||||||
Financial net |
-0.5 | -0.5 | 0 | % | -0.5 | 13 | % | -1.0 | -0.6 | |||||||||||||||||||
Taxes |
-0.7 | -0.9 | -26 | % | -0.9 | -26 | % | -1.6 | -1.5 | |||||||||||||||||||
Net income |
1.6 | 2.1 | -26 | % | 2.1 | -26 | % | 3.7 | 3.6 | |||||||||||||||||||
Restructuring charges |
-1.0 | -2.7 | -63 | % | -0.6 | 62 | % | -1.7 | -3.4 |
3 Ericsson | Second Quarter Report 2016
4 Ericsson | Second Quarter Report 2016
REGIONAL SALES
Second quarter 2016 | Change | |||||||||||||||||||||||
SEK b. |
Networks | Global Services |
Support Solutions |
Total | YoY | QoQ | ||||||||||||||||||
North America |
6.6 | 6.1 | 0.7 | 13.4 | -8 | % | 2 | % | ||||||||||||||||
Latin America |
2.1 | 2.3 | 0.2 | 4.5 | -10 | % | 12 | % | ||||||||||||||||
Northern Europe and Central Asia |
1.0 | 1.1 | 0.1 | 2.1 | -18 | % | -6 | % | ||||||||||||||||
Western and Central Europe |
1.7 | 2.6 | 0.1 | 4.5 | -13 | % | 13 | % | ||||||||||||||||
Mediterranean |
2.1 | 3.1 | 0.2 | 5.4 | -8 | % | 26 | % | ||||||||||||||||
Middle East |
1.9 | 2.8 | 0.3 | 4.9 | -24 | % | 38 | % | ||||||||||||||||
Sub-Saharan Africa |
1.0 | 1.2 | 0.1 | 2.3 | -13 | % | 9 | % | ||||||||||||||||
India |
1.0 | 1.3 | 0.2 | 2.4 | -20 | % | -10 | % | ||||||||||||||||
North East Asia |
4.2 | 1.8 | 0.1 | 6.0 | -13 | % | 8 | % | ||||||||||||||||
South East Asia and Oceania |
3.2 | 2.0 | 0.1 | 5.3 | 8 | % | 1 | % | ||||||||||||||||
Other 1) |
2.0 | 0.3 | 0.8 | 3.2 | -6 | % | -41 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
26.8 | 24.5 | 2.9 | 54.1 | -11 | % | 4 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
1) | Region Other includes licensing revenues, broadcast services, power modules, mobile broadband modules, Ericsson-LG Enterprise and other businesses. |
5 Ericsson | Second Quarter Report 2016 |
SEGMENT RESULTS
NETWORKS
SEK b. |
Q2 2016 |
Q2 2015 |
YoY change |
Q1 2016 |
QoQ change |
6 months 2016 |
6 months 2015 |
|||||||||||||||||||||
Net sales |
26.8 | 31.2 | -14 | % | 25.8 | 4 | % | 52.6 | 57.6 | |||||||||||||||||||
Sales growth adj. for comparable units and currency |
| | -11 | % | | 6 | % | -7 | % | -9 | % | |||||||||||||||||
Operating income |
1.6 | 2.4 | -35 | % | 2.7 | -42 | % | 4.3 | 3.0 | |||||||||||||||||||
Operating income excluding restructuring charges |
2.2 | 4.3 | -49 | % | 3.0 | -27 | % | 5.2 | 5.0 | |||||||||||||||||||
Operating margin |
6 | % | 8 | % | | 11 | % | | 8 | % | 5 | % | ||||||||||||||||
Operating margin excluding restructuring charges |
8 | % | 14 | % | | 12 | % | | 10 | % | 9 | % | ||||||||||||||||
EBITA margin |
7 | % | 10 | % | | 11 | % | | 9 | % | 7 | % | ||||||||||||||||
Restructuring charges |
-0.6 | -1.8 | -67 | % | -0.3 | 106 | % | -0.9 | -2.0 |
6 Ericsson | Second Quarter Report 2016 |
GLOBAL SERVICES
SEK b. |
Q2 2016 |
Q2 2015 |
YoY change |
Q1 2016 |
QoQ change |
6 months 2016 |
6 months 2015 |
|||||||||||||||||||||
Net sales |
24.5 | 26.4 | -7 | % | 23.0 | 6 | % | 47.5 | 50.3 | |||||||||||||||||||
Of which Professional Services |
18.7 | 20.0 | -7 | % | 17.9 | 4 | % | 36.6 | 38.1 | |||||||||||||||||||
Of which Managed Services |
7.3 | 8.2 | -10 | % | 7.4 | 0 | % | 14.7 | 15.7 | |||||||||||||||||||
Of which Network Rollout |
5.8 | 6.4 | -9 | % | 5.1 | 14 | % | 10.9 | 12.2 | |||||||||||||||||||
Sales growth adj. for comparable units and currency |
| | -3 | % | | 8 | % | -2 | % | -2 | % | |||||||||||||||||
Operating income |
1.5 | 1.6 | -10 | % | 0.6 | 130 | % | 2.1 | 3.3 | |||||||||||||||||||
Of which Professional Services |
1.7 | 2.4 | -30 | % | 1.3 | 30 | % | 3.0 | 4.5 | |||||||||||||||||||
Of which Network Rollout |
-0.2 | -0.8 | -75 | % | -0.6 | -70 | % | -0.8 | -1.2 | |||||||||||||||||||
Operating margin |
6 | % | 6 | % | | 3 | % | | 4 | % | 7 | % | ||||||||||||||||
for Professional Services |
9 | % | 12 | % | | 7 | % | | 8 | % | 12 | % | ||||||||||||||||
for Network Rollout |
-3 | % | -12 | % | | -13 | % | | -8 | % | -10 | % | ||||||||||||||||
Operating income excluding restructuring charges |
1.8 | 2.3 | -21 | % | 1.0 | 91 | % | 2.8 | 4.4 | |||||||||||||||||||
Operating margin excluding restructuring charges |
7 | % | 9 | % | | 4 | % | | 6 | % | 9 | % | ||||||||||||||||
EBITA margin |
7 | % | 7 | % | | 4 | % | | 5 | % | 8 | % | ||||||||||||||||
Restructuring charges |
-0.3 | -0.7 | -50 | % | -0.3 | 10 | % | -0.7 | -1.1 |
Q2 2016 |
Q1 2016 |
Full year 2015 |
||||||||||
Number of signed Managed Services contracts |
20 | 21 | 101 | |||||||||
Number of signed significant consulting & systems integration contracts 1) |
18 | 13 | 66 |
1) | In the areas of OSS and BSS, IP, Service Delivery Platforms and data center build projects. |
7 Ericsson | Second Quarter Report 2016
SUPPORT SOLUTIONS
SEK b. |
Q2 2016 |
Q2 2015 |
YoY change |
Q1 2016 |
QoQ change |
6 months 2016 |
6 months 2015 |
|||||||||||||||||||||
Net sales |
2.9 | 3.1 | -7 | % | 3.4 | -15 | % | 6.2 | 6.2 | |||||||||||||||||||
Sales growth adj. for comparable units and currency |
| | -6 | % | | -12 | % | 0 | % | -12 | % | |||||||||||||||||
Operating income |
-0.4 | -0.2 | 75 | % | 0.2 | -277 | % | -0.2 | -0.2 | |||||||||||||||||||
Operating income excluding restructuring charges |
-0.4 | 0.0 | | 0.3 | | -0.1 | 0.1 | |||||||||||||||||||||
Operating margin |
-15 | % | -8 | % | | 7 | % | | -3 | % | -3 | % | ||||||||||||||||
Operating margin excluding restructuring charges |
-12 | % | -2 | % | | 8 | % | | -1 | % | 1 | % | ||||||||||||||||
EBITA margin |
-6 | % | 0 | % | | 15 | % | | 5 | % | 5 | % | ||||||||||||||||
Restructuring charges |
-0.1 | -0.2 | -65 | % | 0.0 | | -0.1 | -0.2 |
8 Ericsson | Second Quarter Report 2016
CASH FLOW
SEK b. |
Q2 2016 |
Q2 2015 |
Q1 2016 |
|||||||||
Net income reconciled to cash |
1.3 | 3.4 | 3.6 | |||||||||
Changes in operating net assets |
-2.0 | -0.3 | -6.0 | |||||||||
Cash flow from operating activities |
-0.7 | 3.1 | -2.4 | |||||||||
Cash flow from investing activities |
1.4 | 7.0 | -1.0 | |||||||||
Cash flow from financing activities |
-9.3 | -10.6 | 0.1 | |||||||||
Net change in cash and cash equivalents |
-7.0 | -2.3 | -4.3 | |||||||||
Cash conversion (%) |
-54 | % | 90 | % | -65 | % |
Working capital KPIs, number of days |
Jan-Jun 2016 |
Jan-Mar 2016 |
Jan-Dec 2015 |
Jan-Sep 2015 |
Jan-Jun 2015 |
|||||||||||||||
Sales outstanding (target: <90) |
115 | 108 | 87 | 113 | 112 | |||||||||||||||
Inventory (target: <65) |
81 | 80 | 64 | 72 | 74 | |||||||||||||||
Payable (target: >60) |
59 | 58 | 53 | 55 | 57 |
9 Ericsson | Second Quarter Report 2016
FINANCIAL POSITION
SEK b. |
Jun 30 2016 |
Jun 30 2015 |
Mar 31 2016 |
|||||||||
+ Short-term investments |
19.8 | 20.8 | 25.1 | |||||||||
+ Cash and cash equivalents |
28.9 | 33.0 | 35.9 | |||||||||
Gross cash |
48.8 | 53.8 | 61.0 | |||||||||
- Interest bearing liabilities |
27.8 | 25.8 | 24.5 | |||||||||
Net cash |
21.0 | 28.0 | 36.5 | |||||||||
Equity |
136.7 | 136.7 | 145.6 | |||||||||
Total assets |
277.4 | 278.9 | 280.3 | |||||||||
Capital turnover (times) |
1.1 | 1.3 | 1.1 | |||||||||
Return on capital employed (%) |
6.5 | % | 6.9 | % | 6.9 | % | ||||||
Equity ratio (%) |
49.3 | % | 49.0 | % | 52.0 | % | ||||||
Return on equity (%) |
5.0 | % | 5.9 | % | 5.4 | % |
10 Ericsson | Second Quarter Report 2016
PARENT COMPANY
11 Ericsson | Second Quarter Report 2016
OTHER INFORMATION
12 Ericsson | Second Quarter Report 2016
RISK FACTORS
13 Ericsson | Second Quarter Report 2016
BOARD ASSURANCE
The Board of Directors and the CEO certify that the financial report for the six months gives a fair view of the performance of the business, position and profit or loss of the Company and the Group, and describes the principal risks and uncertainties that the Company and the companies in the Group face.
Stockholm, July 19, 2016
Telefonaktiebolaget LM Ericsson (publ)
Org. Nr. 556016-0680
Helena Stjernholm | Leif Johansson | Jacob Wallenberg | ||
Deputy Chairman | Chairman | Deputy Chairman | ||
Nora Denzel | Börje Ekholm | Ulf J. Johansson | ||
Member of the Board | Member of the Board | Member of the Board | ||
Kristin Skogen Lund | Kristin S. Rinne | Sukhinder Singh Cassidy | ||
Member of the Board | Member of the Board | Member of the Board | ||
Hans Vestberg | ||||
President, CEO and member of the Board | ||||
Pehr Claesson | Mikael Lännqvist | Karin Åberg | ||
Member of the Board | Member of the Board | Member of the Board |
14 Ericsson | Second Quarter Report 2016
EDITORS NOTE
15 Ericsson | Second Quarter Report 2016
SAFE HARBOR STATEMENT
16 Ericsson | Second Quarter Report 2016
FINANCIAL STATEMENTS AND
ADDITIONAL INFORMATION
17 Ericsson | Second Quarter Report 2016
Apr-Jun | Jan-Jun | |||||||||||||||||||||||
SEK million |
2016 | 2015 | Change | 2016 | 2015 | Change | ||||||||||||||||||
Net sales |
54,108 | 60,671 | -11 | % | 106,317 | 114,191 | -7 | % | ||||||||||||||||
Cost of sales |
-36,613 | -40,536 | -10 | % | -71,432 | -75,092 | -5 | % | ||||||||||||||||
Gross income |
17,495 | 20,135 | -13 | % | 34,885 | 39,099 | -11 | % | ||||||||||||||||
Gross margin (%) |
32.3 | % | 33.2 | % | 32.8 | % | 34.2 | % | ||||||||||||||||
Research and development expenses |
-7,405 | -9,896 | -25 | % | -14,890 | -18,383 | -19 | % | ||||||||||||||||
Selling and administrative expenses |
-7,109 | -7,765 | -8 | % | -13,829 | -14,896 | -7 | % | ||||||||||||||||
Operating expenses |
-14,514 | -17,661 | -18 | % | -28,719 | -33,279 | -14 | % | ||||||||||||||||
Other operating income and expenses |
-230 | 1,059 | 43 | -181 | ||||||||||||||||||||
Shares in earnings of JV and associated companies |
12 | 27 | 29 | 54 | ||||||||||||||||||||
Operating income |
2,763 | 3,560 | -22 | % | 6,238 | 5,693 | 10 | % | ||||||||||||||||
Financial income |
139 | -238 | 50 | 446 | ||||||||||||||||||||
Financial expenses |
-666 | -290 | -1,043 | -1,030 | ||||||||||||||||||||
Income after financial items |
2,236 | 3,032 | -26 | % | 5,245 | 5,109 | 3 | % | ||||||||||||||||
Taxes |
-670 | -909 | -1,573 | -1,532 | ||||||||||||||||||||
Net income |
1,566 | 2,123 | -26 | % | 3,672 | 3,577 | 3 | % | ||||||||||||||||
Net income attributable to: |
||||||||||||||||||||||||
Stockholders of the Parent Company |
1,587 | 2,094 | 3,553 | 3,413 | ||||||||||||||||||||
Non-controlling interests |
-21 | 29 | 119 | 164 | ||||||||||||||||||||
Other information |
||||||||||||||||||||||||
Average number of shares, basic (million) |
3,261 | 3,247 | 3,259 | 3,246 | ||||||||||||||||||||
Earnings per share, basic (SEK) 1) |
0.49 | 0.64 | 1.09 | 1.05 | ||||||||||||||||||||
Earnings per share, diluted (SEK) 1) |
0.48 | 0.64 | 1.08 | 1.04 |
1) | Based on Net income attributable to stockholders of the Parent Company. |
STATEMENT OF COMPREHENSIVE INCOME
Apr-Jun | Jan-Jun | |||||||||||||||
SEK million |
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net income |
1,566 | 2,123 | 3,672 | 3,577 | ||||||||||||
Other comprehensive income |
||||||||||||||||
Items that will not be reclassified to profit or loss |
||||||||||||||||
Remeasurements of defined benefits pension plans incl. asset ceiling |
-941 | -1,562 | -4,443 | -4,773 | ||||||||||||
Tax on items that will not be reclassified to profit or loss |
235 | 610 | 1,188 | 1,304 | ||||||||||||
Items that may be reclassified to profit or loss |
||||||||||||||||
Cash flow hedges |
||||||||||||||||
Gains/losses arising during the period |
| | | | ||||||||||||
Reclassification adjustments for gains/losses included in profit or loss |
| | | | ||||||||||||
Revaluation of other investments in shares and participations |
||||||||||||||||
Fair value remeasurement |
| | -4 | 181 | ||||||||||||
Changes in cumulative translation adjustments |
1,981 | -2,626 | 848 | 1,783 | ||||||||||||
Share of other comprehensive income on JV and associated companies |
10 | -92 | -366 | -96 | ||||||||||||
Tax on items that may be reclassified to profit or loss |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total other comprehensive income, net of tax |
1,285 | -3,670 | -2,777 | -1,601 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total comprehensive income |
2,851 | -1,547 | 895 | 1,976 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total comprehensive income attributable to: |
||||||||||||||||
Stockholders of the Parent Company |
2,843 | -1,515 | 750 | 1,790 | ||||||||||||
Non-controlling interest |
8 | -32 | 145 | 186 |
18 Ericsson | Second Quarter Report 2016
SEK million |
Jun 30 2016 |
Mar 31 2016 |
Dec 31 2015 |
|||||||||
ASSETS |
||||||||||||
Non-current assets |
||||||||||||
Intangible assets |
||||||||||||
Capitalized development expenses |
7,064 | 6,349 | 5,493 | |||||||||
Goodwill |
41,913 | 40,316 | 41,087 | |||||||||
Intellectual property rights, brands and other intangible assets |
8,035 | 8,400 | 9,316 | |||||||||
Property, plant and equipment |
16,856 | 16,127 | 15,901 | |||||||||
Financial assets |
||||||||||||
Equity in JV and associated companies |
787 | 851 | 1,210 | |||||||||
Other investments in shares and participations |
1,178 | 1,090 | 1,275 | |||||||||
Customer finance, non-current |
2,315 | 1,663 | 1,739 | |||||||||
Other financial assets, non-current |
5,061 | 4,997 | 5,634 | |||||||||
Deferred tax assets |
14,451 | 14,117 | 13,183 | |||||||||
97,660 | 93,910 | 94,838 | ||||||||||
Current assets |
||||||||||||
Inventories |
34,660 | 32,252 | 28,436 | |||||||||
Trade receivables |
68,461 | 66,701 | 71,069 | |||||||||
Customer finance, current |
2,532 | 2,346 | 2,041 | |||||||||
Other current receivables |
25,297 | 24,105 | 21,709 | |||||||||
Short-term investments |
19,846 | 25,077 | 26,046 | |||||||||
Cash and cash equivalents |
28,931 | 35,934 | 40,224 | |||||||||
179,727 | 186,415 | 189,525 | ||||||||||
|
|
|
|
|
|
|||||||
Total assets |
277,387 | 280,325 | 284,363 | |||||||||
|
|
|
|
|
|
|||||||
EQUITY AND LIABILITIES |
||||||||||||
Equity |
||||||||||||
Stockholders equity |
135,746 | 144,699 | 146,525 | |||||||||
Non-controlling interest in equity of subsidiaries |
945 | 945 | 841 | |||||||||
136,691 | 145,644 | 147,366 | ||||||||||
Non-current liabilities |
||||||||||||
Post-employment benefits |
27,323 | 25,715 | 22,664 | |||||||||
Provisions, non-current |
245 | 158 | 176 | |||||||||
Deferred tax liabilities |
2,036 | 2,098 | 2,472 | |||||||||
Borrowings, non-current |
18,164 | 22,110 | 22,744 | |||||||||
Other non-current liabilities |
2,030 | 1,834 | 1,851 | |||||||||
49,798 | 51,915 | 49,907 | ||||||||||
Current liabilities |
||||||||||||
Provisions, current |
3,142 | 3,374 | 3,662 | |||||||||
Borrowings, current |
9,653 | 2,414 | 2,376 | |||||||||
Trade payables |
23,709 | 21,549 | 22,389 | |||||||||
Other current liabilities |
54,394 | 55,429 | 58,663 | |||||||||
90,898 | 82,766 | 87,090 | ||||||||||
|
|
|
|
|
|
|||||||
Total equity and liabilities |
277,387 | 280,325 | 284,363 | |||||||||
|
|
|
|
|
|
|||||||
Of which interest-bearing liabilities |
27,817 | 24,524 | 25,120 | |||||||||
Of which net cash |
20,960 | 36,487 | 41,150 | |||||||||
Assets pledged as collateral |
2,523 | 2,513 | 2,526 | |||||||||
Contingent liabilities |
1,003 | 918 | 922 |
19 Ericsson | Second Quarter Report 2016
OF CASH FLOWS
Apr-Jun | Jan-Jun | Jan-Dec | ||||||||||||||||||
SEK million |
2016 | 2015 | 2016 | 2015 | 2015 | |||||||||||||||
Operating activities |
||||||||||||||||||||
Net income |
1,566 | 2,123 | 3,672 | 3,577 | 13,673 | |||||||||||||||
Adjustments to reconcile net income to cash |
||||||||||||||||||||
Taxes |
-3,410 | -1,360 | -4,618 | -3,281 | -2,835 | |||||||||||||||
Earnings/dividends in JV and associated companies |
73 | 49 | 57 | 27 | 130 | |||||||||||||||
Depreciation, amortization and impairment losses |
2,104 | 2,579 | 4,201 | 5,260 | 10,206 | |||||||||||||||
Other |
988 | 22 | 1,640 | 966 | 3,110 | |||||||||||||||
1,321 | 3,413 | 4,952 | 6,549 | 24,284 | ||||||||||||||||
Changes in operating net assets |
||||||||||||||||||||
Inventories |
-1,667 | 383 | -5,879 | -3,636 | -366 | |||||||||||||||
Customer finance, current and non-current |
-816 | 405 | -1,067 | 147 | 824 | |||||||||||||||
Trade receivables |
-564 | 3,630 | 2,844 | 5,667 | 7,000 | |||||||||||||||
Trade payables |
2,457 | -1,400 | 1,840 | -3,068 | -2,676 | |||||||||||||||
Provisions and post-employment benefits |
218 | 1,685 | 204 | 1,519 | 544 | |||||||||||||||
Other operating assets and liabilities, net |
-1,662 | -5,038 | -5,979 | -10,000 | -9,013 | |||||||||||||||
-2,034 | -335 | -8,037 | -9,371 | -3,687 | ||||||||||||||||
Cash flow from operating activities |
-713 | 3,078 | -3,085 | -2,822 | 20,597 | |||||||||||||||
Investing activities |
||||||||||||||||||||
Investments in property, plant and equipment |
-1,572 | -2,424 | -3,046 | -4,791 | -8,338 | |||||||||||||||
Sales of property, plant and equipment |
50 | 1,075 | 94 | 1,150 | 1,301 | |||||||||||||||
Acquisitions/divestments of subsidiaries and other operations, net |
-480 | -169 | -588 | -227 | -2,200 | |||||||||||||||
Product development |
-1,099 | -843 | -2,307 | -1,137 | -3,302 | |||||||||||||||
Other investing activities |
-890 | -280 | -155 | -162 | -543 | |||||||||||||||
Short-term investments |
5,355 | 9,678 | 6,368 | 10,077 | 5,095 | |||||||||||||||
Cash flow from investing activities |
1,364 | 7,037 | 366 | 4,910 | -7,987 | |||||||||||||||
Cash flow before financing activities |
651 | 10,115 | -2,719 | 2,088 | 12,610 | |||||||||||||||
Financing activities |
||||||||||||||||||||
Dividends paid |
-12,067 | -11,035 | -12,100 | -11,060 | -11,337 | |||||||||||||||
Other financing activities |
2,761 | 431 | 2,855 | 1,330 | 627 | |||||||||||||||
Cash flow from financing activities |
-9,306 | -10,604 | -9,245 | -9,730 | -10,710 | |||||||||||||||
Effect of exchange rate changes on cash |
1,652 | -1,860 | 671 | -384 | -2,664 | |||||||||||||||
Net change in cash and cash equivalents |
-7,003 | -2,349 | -11,293 | -8,026 | -764 | |||||||||||||||
Cash and cash equivalents, beginning of period |
35,934 | 35,311 | 40,224 | 40,988 | 40,988 | |||||||||||||||
Cash and cash equivalents, end of period |
28,931 | 32,962 | 28,931 | 32,962 | 40,224 |
20 Ericsson | Second Quarter Report 2016
OF CHANGES IN EQUITY
Jan-Jun | Jan-Dec | |||||||||||
SEK million |
2016 | 2015 | 2015 | |||||||||
Opening balance |
147,366 | 145,309 | 145,309 | |||||||||
Total comprehensive income |
895 | 1,976 | 12,362 | |||||||||
Sale/repurchase of own shares |
-74 | 88 | 169 | |||||||||
Stock issue (net) |
131 | | | |||||||||
Stock purchase plan |
472 | 414 | 865 | |||||||||
Dividends paid |
-12,099 | -11,060 | -11,337 | |||||||||
Transactions with non-controlling interests |
| -2 | -2 | |||||||||
Closing balance |
136,691 | 136,725 | 147,366 |
ISOLATED QUARTERS
2016 | 2015 | |||||||||||||||||||||||
Isolated quarters, SEK million |
Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||
Net sales |
54,108 | 52,209 | 73,568 | 59,161 | 60,671 | 53,520 | ||||||||||||||||||
Cost of sales |
-36,613 | -34,819 | -46,899 | -39,110 | -40,536 | -34,556 | ||||||||||||||||||
Gross income |
17,495 | 17,390 | 26,669 | 20,051 | 20,135 | 18,964 | ||||||||||||||||||
Gross margin (%) |
32.3 | % | 33.3 | % | 36.3 | % | 33.9 | % | 33.2 | % | 35.4 | % | ||||||||||||
Research and development expenses |
-7,405 | -7,485 | -7,921 | -8,540 | -9,896 | -8,487 | ||||||||||||||||||
Selling and administrative expenses |
-7,109 | -6,720 | -7,996 | -6,393 | -7,765 | -7,131 | ||||||||||||||||||
Operating expenses |
-14,514 | -14,205 | -15,917 | -14,933 | -17,661 | -15,618 | ||||||||||||||||||
Other operating income and expenses |
-230 | 273 | 254 | 80 | 1,059 | -1,240 | ||||||||||||||||||
Shares in earnings of JV and associated companies |
12 | 17 | 29 | -121 | 27 | 27 | ||||||||||||||||||
Operating income |
2,763 | 3,475 | 11,035 | 5,077 | 3,560 | 2,133 | ||||||||||||||||||
Financial income |
139 | -89 | -109 | 188 | -238 | 684 | ||||||||||||||||||
Financial expenses |
-666 | -377 | -619 | -809 | -290 | -740 | ||||||||||||||||||
Income after financial items |
2,236 | 3,009 | 10,307 | 4,456 | 3,032 | 2,077 | ||||||||||||||||||
Taxes |
-670 | -903 | -3,329 | -1,338 | -909 | -623 | ||||||||||||||||||
Net income |
1,566 | 2,106 | 6,978 | 3,118 | 2,123 | 1,454 | ||||||||||||||||||
Net income attributable to: |
||||||||||||||||||||||||
Stockholders of the Parent Company |
1,587 | 1,966 | 7,056 | 3,080 | 2,094 | 1,319 | ||||||||||||||||||
Non-controlling interests |
-21 | 140 | -78 | 38 | 29 | 135 | ||||||||||||||||||
Other information |
||||||||||||||||||||||||
Average number of shares, basic (million) |
3,261 | 3,258 | 3,254 | 3,251 | 3,247 | 3,244 | ||||||||||||||||||
Earnings per share, basic (SEK) 1) |
0.49 | 0.60 | 2.17 | 0.95 | 0.64 | 0.41 | ||||||||||||||||||
Earnings per share, diluted (SEK) 1) |
0.48 | 0.60 | 2.15 | 0.94 | 0.64 | 0.40 |
1) | Based on Net income attributable to stockholders of the Parent Company. |
21 Ericsson | Second Quarter Report 2016
OF CASH FLOWS ISOLATED QUARTERS
2016 | 2015 | |||||||||||||||||||||||
Isolated quarters, SEK million |
Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||
Operating activities |
||||||||||||||||||||||||
Net income |
1,566 | 2,106 | 6,978 | 3,118 | 2,123 | 1,454 | ||||||||||||||||||
Adjustments to reconcile net income to cash |
||||||||||||||||||||||||
Taxes |
-3,410 | -1,208 | 395 | 51 | -1,360 | -1,921 | ||||||||||||||||||
Earnings/dividends in JV and associated companies |
73 | -16 | -33 | 136 | 49 | -22 | ||||||||||||||||||
Depreciation, amortization and impairment losses |
2,104 | 2,097 | 2,521 | 2,425 | 2,579 | 2,681 | ||||||||||||||||||
Other |
988 | 652 | 1,092 | 1,052 | 22 | 944 | ||||||||||||||||||
1,321 | 3,631 | 10,953 | 6,782 | 3,413 | 3,136 | |||||||||||||||||||
Changes in operating net assets |
||||||||||||||||||||||||
Inventories |
-1,667 | -4,212 | 3,496 | -226 | 383 | -4,019 | ||||||||||||||||||
Customer finance, current and non-current |
-816 | -251 | 302 | 375 | 405 | -258 | ||||||||||||||||||
Trade receivables |
-564 | 3,408 | 2,754 | -1,421 | 3,630 | 2,037 | ||||||||||||||||||
Trade payables |
2,457 | -617 | 886 | -494 | -1,400 | -1,668 | ||||||||||||||||||
Provisions and post-employment benefits |
218 | -14 | -673 | -302 | 1,685 | -166 | ||||||||||||||||||
Other operating assets and liabilities, net |
-1,662 | -4,317 | 4,141 | -3,154 | -5,038 | -4,962 | ||||||||||||||||||
-2,034 | -6,003 | 10,906 | -5,222 | -335 | -9,036 | |||||||||||||||||||
Cash flow from operating activities |
-713 | -2,372 | 21,859 | 1,560 | 3,078 | -5,900 | ||||||||||||||||||
Investing activities |
||||||||||||||||||||||||
Investments in property, plant and equipment |
-1,572 | -1,474 | -1,740 | -1,807 | -2,424 | -2,367 | ||||||||||||||||||
Sales of property, plant and equipment |
50 | 44 | 92 | 59 | 1,075 | 75 | ||||||||||||||||||
Acquisitions/divestments of subsidiaries and other operations, net |
-480 | -108 | -945 | -1,028 | -169 | -58 | ||||||||||||||||||
Product development |
-1,099 | -1,208 | -1,183 | -982 | -843 | -294 | ||||||||||||||||||
Other investing activities |
-890 | 735 | -418 | 37 | -280 | 118 | ||||||||||||||||||
Short-term investments |
5,355 | 1,013 | -8,613 | 3,631 | 9,678 | 399 | ||||||||||||||||||
Cash flow from investing activities |
1,364 | -998 | -12,807 | -90 | 7,037 | -2,127 | ||||||||||||||||||
Cash flow before financing activities |
651 | -3,370 | 9,052 | 1,470 | 10,115 | -8,027 | ||||||||||||||||||
Financing activities |
||||||||||||||||||||||||
Dividends paid |
-12,067 | -33 | | -277 | -11,035 | -25 | ||||||||||||||||||
Other financing activities |
2,761 | 94 | -669 | -34 | 431 | 899 | ||||||||||||||||||
Cash flow from financing activities |
-9,306 | 61 | -669 | -311 | -10,604 | 874 | ||||||||||||||||||
Effect of exchange rate changes on cash |
1,652 | -981 | -2,109 | -171 | -1,860 | 1,476 | ||||||||||||||||||
Net change in cash and cash equivalents |
-7,003 | -4,290 | 6,274 | 988 | -2,349 | -5,677 | ||||||||||||||||||
Cash and cash equivalents, beginning of period |
35,934 | 40,224 | 33,950 | 32,962 | 35,311 | 40,988 | ||||||||||||||||||
Cash and cash equivalents, end of period |
28,931 | 35,934 | 40,224 | 33,950 | 32,962 | 35,311 |
22 Ericsson | Second Quarter Report 2016
PARENT COMPANY INCOME STATEMENT
Apr-Jun | Jan-Jun | Jan-Dec | ||||||||||||||||||
SEK million |
2016 | 2015 | 2016 | 2015 | 2015 | |||||||||||||||
Net sales |
| | | | | |||||||||||||||
Cost of sales |
| | | | | |||||||||||||||
Gross income |
| | | | | |||||||||||||||
Operating expenses |
-267 | -191 | -490 | -480 | -1,040 | |||||||||||||||
Other operating income and expenses |
616 | 645 | 1,190 | 1,338 | 2,889 | |||||||||||||||
Operating income |
349 | 454 | 700 | 858 | 1,849 | |||||||||||||||
Financial net |
12,496 | 6,736 | 12,507 | 8,187 | 14,952 | |||||||||||||||
Income after financial items |
12,845 | 7,190 | 13,207 | 9,045 | 16,801 | |||||||||||||||
Transfers to (-) / from untaxed reserves |
| | | | -1,500 | |||||||||||||||
Taxes |
-89 | -92 | -134 | -211 | -208 | |||||||||||||||
Net income |
12,756 | 7,098 | 13,073 | 8,834 | 15,093 |
OF COMPREHENSIVE INCOME
Apr-Jun | Jan-Jun | Jan-Dec | ||||||||||||||||||
SEK million |
2016 | 2015 | 2016 | 2015 | 2015 | |||||||||||||||
Net income |
12,756 | 7,098 | 13,073 | 8,834 | 15,093 | |||||||||||||||
Revaluation of other investments in shares and participations |
||||||||||||||||||||
Fair value remeasurement |
| | 5 | 181 | 457 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total other comprehensive income, net of tax |
| | 5 | 181 | 457 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total comprehensive income |
12,756 | 7,098 | 13,078 | 9,015 | 15,550 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
23 Ericsson | Second Quarter Report 2016
SEK million |
Jun 30 2016 |
Dec 31 2015 |
||||||
ASSETS |
||||||||
Fixed assets |
||||||||
Intangible assets |
675 | 809 | ||||||
Tangible assets |
438 | 456 | ||||||
Financial assets |
103,489 | 99,914 | ||||||
104,602 | 101,179 | |||||||
Current assets |
||||||||
Inventories |
7 | | ||||||
Receivables |
35,026 | 25,692 | ||||||
Short-term investments |
19,437 | 25,506 | ||||||
Cash and cash equivalents |
13,837 | 23,118 | ||||||
68,307 | 74,316 | |||||||
|
|
|
|
|||||
Total assets |
172,909 | 175,495 | ||||||
|
|
|
|
|||||
STOCKHOLDERS EQUITY, PROVISIONS AND LIABILITIES |
||||||||
Equity |
||||||||
Restricted equity |
48,149 | 48,018 | ||||||
Non-restricted equity |
43,532 | 42,578 | ||||||
91,681 | 90,596 | |||||||
Provisions |
774 | 807 | ||||||
Non-current liabilities |
41,898 | 46,457 | ||||||
Current liabilities |
38,556 | 37,635 | ||||||
|
|
|
|
|||||
Total stockholders equity, provisions and liabilities |
172,909 | 175,495 | ||||||
|
|
|
|
|||||
Assets pledged as collateral |
523 | 526 | ||||||
Contingent liabilities |
23,004 | 22,461 |
24 Ericsson | Second Quarter Report 2016
THE GROUP
25 Ericsson | Second Quarter Report 2016
NET SALES BY SEGMENT BY QUARTER
2016 | 2015 | |||||||||||||||||||||||
Isolated quarters, SEK million |
Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||
Networks |
26,765 | 25,820 | 37,304 | 28,817 | 31,163 | 26,436 | ||||||||||||||||||
Global Services |
24,481 | 23,018 | 30,670 | 27,055 | 26,392 | 23,901 | ||||||||||||||||||
Of which Professional Services |
18,670 | 17,932 | 23,072 | 20,545 | 20,001 | 18,131 | ||||||||||||||||||
Of which Managed Services |
7,330 | 7,352 | 8,214 | 7,976 | 8,150 | 7,501 | ||||||||||||||||||
Of which Network Rollout |
5,811 | 5,086 | 7,598 | 6,510 | 6,391 | 5,770 | ||||||||||||||||||
Support Solutions |
2,862 | 3,371 | 5,594 | 3,289 | 3,092 | 3,074 | ||||||||||||||||||
Modems |
| | | | 24 | 109 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
54,108 | 52,209 | 73,568 | 59,161 | 60,671 | 53,520 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
2016 | 2015 | |||||||||||||||||||||||
Sequential change, percent |
Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||
Networks |
4 | % | -31 | % | 29 | % | -8 | % | 18 | % | -22 | % | ||||||||||||
Global Services |
6 | % | -25 | % | 13 | % | 3 | % | 10 | % | -20 | % | ||||||||||||
Of which Professional Services |
4 | % | -22 | % | 12 | % | 3 | % | 10 | % | -15 | % | ||||||||||||
Of which Managed Services |
0 | % | -10 | % | 3 | % | -2 | % | 9 | % | -3 | % | ||||||||||||
Of which Network Rollout |
14 | % | -33 | % | 17 | % | 2 | % | 11 | % | -31 | % | ||||||||||||
Support Solutions |
-15 | % | -40 | % | 70 | % | 6 | % | 1 | % | -23 | % | ||||||||||||
Modems |
| | | | | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
4 | % | -29 | % | 24 | % | -2 | % | 13 | % | -21 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
2016 | 2015 | |||||||||||||||||||||||
Year over year change, percent |
Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||
Networks |
-14 | % | -2 | % | 9 | % | -4 | % | 8 | % | 8 | % | ||||||||||||
Global Services |
-7 | % | -4 | % | 3 | % | 11 | % | 14 | % | 17 | % | ||||||||||||
Of which Professional Services |
-7 | % | -1 | % | 8 | % | 15 | % | 21 | % | 20 | % | ||||||||||||
Of which Managed Services |
-10 | % | -2 | % | 6 | % | 11 | % | 26 | % | 30 | % | ||||||||||||
Of which Network Rollout |
-9 | % | -12 | % | -9 | % | -2 | % | -2 | % | 9 | % | ||||||||||||
Support Solutions |
-7 | % | 10 | % | 40 | % | 8 | % | 9 | % | 11 | % | ||||||||||||
Modems |
| | | | | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
-11 | % | -2 | % | 8 | % | 3 | % | 11 | % | 13 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
2016 | 2015 | |||||||||||||||||||||||
Year to date, SEK million |
Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | ||||||||||||||||||
Networks |
52,585 | 25,820 | 123,720 | 86,416 | 57,599 | 26,436 | ||||||||||||||||||
Global Services |
47,499 | 23,018 | 108,018 | 77,348 | 50,293 | 23,901 | ||||||||||||||||||
Of which Professional Services |
36,602 | 17,932 | 81,749 | 58,677 | 38,132 | 18,131 | ||||||||||||||||||
Of which Managed Services |
14,682 | 7,352 | 31,841 | 23,627 | 15,651 | 7,501 | ||||||||||||||||||
Of which Network Rollout |
10,897 | 5,086 | 26,269 | 18,671 | 12,161 | 5,770 | ||||||||||||||||||
Support Solutions |
6,233 | 3,371 | 15,049 | 9,455 | 6,166 | 3,074 | ||||||||||||||||||
Modems |
| 133 | 133 | 133 | 109 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
106,317 | 52,209 | 246,920 | 173,352 | 114,191 | 53,520 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
2016 | 2015 | |||||||||||||||||||||||
Year to date, year over year change, percent |
Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | ||||||||||||||||||
Networks |
-9 | % | -2 | % | 5 | % | 4 | % | 8 | % | 8 | % | ||||||||||||
Global Services |
-6 | % | -4 | % | 11 | % | 14 | % | 16 | % | 17 | % | ||||||||||||
Of which Professional Services |
-4 | % | -1 | % | 15 | % | 19 | % | 21 | % | 20 | % | ||||||||||||
Of which Managed Services |
-6 | % | -2 | % | 17 | % | 22 | % | 28 | % | 30 | % | ||||||||||||
Of which Network Rollout |
-10 | % | -12 | % | -2 | % | 1 | % | 3 | % | 9 | % | ||||||||||||
Support Solutions |
1 | % | 10 | % | 19 | % | 9 | % | 10 | % | 11 | % | ||||||||||||
Modems |
| | | | | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
-7 | % | -2 | % | 8 | % | 8 | % | 12 | % | 13 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
26 Ericsson | Second Quarter Report 2016
COMPARABLE UNITS AND CURRENCY
2016 | 2015 | |||||||||||||||||||||||
Sequential change, percent |
Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||
Networks |
6 | % | -30 | % | 30 | % | -6 | % | 16 | % | -28 | % | ||||||||||||
Global Services |
8 | % | -23 | % | 17 | % | 2 | % | 10 | % | -26 | % | ||||||||||||
Support Solutions |
-13 | % | -39 | % | 70 | % | 7 | % | -3 | % | -31 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
6 | % | -28 | % | 26 | % | -2 | % | 12 | % | -28 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
2016 | 2015 | |||||||||||||||||||||||
Isolated quarter, year over year change, percent |
Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||
Networks |
-11 | % | -3 | % | 0 | % | -15 | % | -9 | % | -9 | % | ||||||||||||
Global Services |
-3 | % | 0 | % | -4 | % | -2 | % | -2 | % | -2 | % | ||||||||||||
Support Solutions |
-6 | % | 5 | % | 22 | % | -8 | % | -13 | % | -11 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
-7 | % | -1 | % | -1 | % | -9 | % | -6 | % | -6 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
2016 | 2015 | |||||||||||||||||||||||
Year to date, year over year change, percent |
Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | ||||||||||||||||||
Networks |
-7 | % | -3 | % | -8 | % | -11 | % | -9 | % | -9 | % | ||||||||||||
Global Services |
-2 | % | 0 | % | -2 | % | -2 | % | -2 | % | -2 | % | ||||||||||||
Support Solutions |
0 | % | 5 | % | 0 | % | -10 | % | -12 | % | -11 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
-4 | % | -1 | % | -5 | % | -7 | % | -6 | % | -6 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
27 Ericsson | Second Quarter Report 2016
BY SEGMENT BY QUARTER
2016 | 2015 | |||||||||||||||||||||||
Isolated quarters, SEK million |
Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||
Networks |
1,593 | 2,724 | 7,154 | 2,764 | 2,435 | 590 | ||||||||||||||||||
Global Services |
1,484 | 644 | 2,530 | 2,364 | 1,640 | 1,681 | ||||||||||||||||||
Of which Professional Services |
1,676 | 1,293 | 2,712 | 2,386 | 2,403 | 2,109 | ||||||||||||||||||
Of which Network Rollout |
-192 | -649 | -182 | -22 | -763 | -428 | ||||||||||||||||||
Support Solutions |
-421 | 238 | 1,668 | -6 | -240 | 82 | ||||||||||||||||||
Modems |
| | 1 | -1 | 7 | 0 | ||||||||||||||||||
Unallocated 1) |
107 | -131 | -318 | -44 | -282 | -220 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
2,763 | 3,475 | 11,035 | 5,077 | 3,560 | 2,133 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
2016 | 2015 | |||||||||||||||||||||||
Year to date, SEK million |
Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | ||||||||||||||||||
Networks |
4,317 | 2,724 | 12,943 | 5,789 | 3,025 | 590 | ||||||||||||||||||
Global Services |
2,128 | 644 | 8,215 | 5,685 | 3,321 | 1,681 | ||||||||||||||||||
Of which Professional Services |
2,969 | 1,293 | 9,610 | 6,898 | 4,512 | 2,109 | ||||||||||||||||||
Of which Network Rollout |
-841 | -649 | -1,395 | -1,213 | -1,191 | -428 | ||||||||||||||||||
Support Solutions |
-183 | 238 | 1,504 | -164 | -158 | 82 | ||||||||||||||||||
Modems |
| | 7 | 6 | 7 | 0 | ||||||||||||||||||
Unallocated 1) |
-24 | -131 | -864 | -546 | -502 | -220 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
6,238 | 3,475 | 21,805 | 10,770 | 5,693 | 2,133 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
1) | Unallocated consists mainly of costs for corporate staff, non-operational capital gains and losses. |
BY SEGMENT BY QUARTER
2016 | 2015 | |||||||||||||||||||||||
As percentage of net sales, isolated quarters |
Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||
Networks |
6 | % | 11 | % | 19 | % | 10 | % | 8 | % | 2 | % | ||||||||||||
Global Services |
6 | % | 3 | % | 8 | % | 9 | % | 6 | % | 7 | % | ||||||||||||
Of which Professional Services |
9 | % | 7 | % | 12 | % | 12 | % | 12 | % | 12 | % | ||||||||||||
Of which Network Rollout |
-3 | % | -13 | % | -2 | % | 0 | % | -12 | % | -7 | % | ||||||||||||
Support Solutions |
-15 | % | 7 | % | 30 | % | 0 | % | -8 | % | 3 | % | ||||||||||||
Modems |
| | | | | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
5 | % | 7 | % | 15 | % | 9 | % | 6 | % | 4 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
2016 | 2015 | |||||||||||||||||||||||
As percentage of net sales, year to date |
Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | ||||||||||||||||||
Networks |
8 | % | 11 | % | 10 | % | 7 | % | 5 | % | 2 | % | ||||||||||||
Global Services |
4 | % | 3 | % | 8 | % | 7 | % | 7 | % | 7 | % | ||||||||||||
Of which Professional Services |
8 | % | 7 | % | 12 | % | 12 | % | 12 | % | 12 | % | ||||||||||||
Of which Network Rollout |
-8 | % | -13 | % | -5 | % | -6 | % | -10 | % | -7 | % | ||||||||||||
Support Solutions |
-3 | % | 7 | % | 10 | % | -2 | % | -3 | % | 3 | % | ||||||||||||
Modems |
| | | | | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
6 | % | 7 | % | 9 | % | 6 | % | 5 | % | 4 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
28 Ericsson | Second Quarter Report 2016
BY SEGMENT BY QUARTER
2016 | 2015 | |||||||||||||||||||||||
Isolated quarters, SEK million |
Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||
Networks |
1,784 | 2,956 | 7,668 | 3,233 | 3,014 | 1,218 | ||||||||||||||||||
Global Services |
1,691 | 837 | 2,770 | 2,604 | 1,918 | 1,952 | ||||||||||||||||||
Of which Professional Services |
1,849 | 1,459 | 2,915 | 2,605 | 2,635 | 2,344 | ||||||||||||||||||
Of which Network Rollout |
-158 | -622 | -145 | -1 | -717 | -392 | ||||||||||||||||||
Support Solutions |
-184 | 496 | 1,892 | 226 | -4 | 308 | ||||||||||||||||||
Modems |
| | 1 | -1 | 7 | 0 | ||||||||||||||||||
Unallocated 1) |
107 | -130 | -317 | -44 | -281 | -220 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
3,398 | 4,159 | 12,014 | 6,018 | 4,654 | 3,258 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
2016 | 2015 | |||||||||||||||||||||||
Year to date, SEK million |
Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | ||||||||||||||||||
Networks |
4,740 | 2,956 | 15,133 | 7,465 | 4,232 | 1,218 | ||||||||||||||||||
Global Services |
2,528 | 837 | 9,244 | 6,474 | 3,870 | 1,952 | ||||||||||||||||||
Of which Professional Services |
3,308 | 1,459 | 10,499 | 7,584 | 4,979 | 2,344 | ||||||||||||||||||
Of which Network Rollout |
-780 | -622 | -1,255 | -1,110 | -1,109 | -392 | ||||||||||||||||||
Support Solutions |
312 | 496 | 2,422 | 530 | 304 | 308 | ||||||||||||||||||
Modems |
| | 7 | 6 | 7 | 0 | ||||||||||||||||||
Unallocated 1) |
-23 | -130 | -862 | -545 | -501 | -220 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
7,557 | 4,159 | 25,944 | 13,930 | 7,912 | 3,258 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
1) | Unallocated consists mainly of costs for corporate staff, non-operational capital gains and losses. |
BY SEGMENT BY QUARTER
2016 | 2015 | |||||||||||||||||||||||
As percentage of net sales, isolated quarters |
Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||
Networks |
7 | % | 11 | % | 21 | % | 11 | % | 10 | % | 5 | % | ||||||||||||
Global Services |
7 | % | 4 | % | 9 | % | 10 | % | 7 | % | 8 | % | ||||||||||||
Of which Professional Services |
10 | % | 8 | % | 13 | % | 13 | % | 13 | % | 13 | % | ||||||||||||
Of which Network Rollout |
-3 | % | -12 | % | -2 | % | 0 | % | -11 | % | -7 | % | ||||||||||||
Support Solutions |
-6 | % | 15 | % | 34 | % | 7 | % | 0 | % | 10 | % | ||||||||||||
Modems |
| | | | | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
6 | % | 8 | % | 16 | % | 10 | % | 8 | % | 6 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
2016 | 2015 | |||||||||||||||||||||||
As percentage of net sales, year to date |
Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | ||||||||||||||||||
Networks |
9 | % | 11 | % | 12 | % | 9 | % | 7 | % | 5 | % | ||||||||||||
Global Services |
5 | % | 4 | % | 9 | % | 8 | % | 8 | % | 8 | % | ||||||||||||
Of which Professional Services |
9 | % | 8 | % | 13 | % | 13 | % | 13 | % | 13 | % | ||||||||||||
Of which Network Rollout |
-7 | % | -12 | % | -5 | % | -6 | % | -9 | % | -7 | % | ||||||||||||
Support Solutions |
5 | % | 15 | % | 16 | % | 6 | % | 5 | % | 10 | % | ||||||||||||
Modems |
| | | | | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
7 | % | 8 | % | 11 | % | 8 | % | 7 | % | 6 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
29 Ericsson | Second Quarter Report 2016
BY REGION BY QUARTER
2016 | 2015 | |||||||||||||||||||||||
Isolated quarters, SEK million |
Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||
North America |
13,426 | 13,182 | 17,082 | 14,355 | 14,578 | 12,246 | ||||||||||||||||||
Latin America |
4,542 | 4,040 | 6,106 | 5,610 | 5,067 | 4,574 | ||||||||||||||||||
Northern Europe & Central Asia 1) 2) |
2,093 | 2,222 | 2,847 | 2,520 | 2,556 | 2,726 | ||||||||||||||||||
Western & Central Europe 2) |
4,466 | 3,953 | 5,320 | 4,540 | 5,131 | 4,741 | ||||||||||||||||||
Mediterranean 2) |
5,427 | 4,296 | 6,971 | 5,470 | 5,887 | 4,982 | ||||||||||||||||||
Middle East |
4,921 | 3,567 | 6,089 | 5,728 | 6,515 | 4,517 | ||||||||||||||||||
Sub Saharan Africa |
2,313 | 2,120 | 2,847 | 2,691 | 2,653 | 2,158 | ||||||||||||||||||
India |
2,426 | 2,683 | 3,172 | 3,629 | 3,049 | 3,531 | ||||||||||||||||||
North East Asia |
6,041 | 5,579 | 8,916 | 6,348 | 6,943 | 6,030 | ||||||||||||||||||
South East Asia & Oceania |
5,272 | 5,199 | 5,329 | 4,750 | 4,897 | 4,259 | ||||||||||||||||||
Other 1) 2) |
3,181 | 5,368 | 8,889 | 3,520 | 3,395 | 3,756 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
54,108 | 52,209 | 73,568 | 59,161 | 60,671 | 53,520 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
1) Of which in Sweden |
477 | 1,113 | 972 | 1,135 | 598 | 1,091 | ||||||||||||||||||
2) Of which in EU |
9,635 | 9,229 | 12,644 | 10,584 | 11,453 | 10,904 | ||||||||||||||||||
2016 | 2015 | |||||||||||||||||||||||
Sequential change, percent |
Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||
North America |
2 | % | -23 | % | 19 | % | -2 | % | 19 | % | -6 | % | ||||||||||||
Latin America |
12 | % | -34 | % | 9 | % | 11 | % | 11 | % | -30 | % | ||||||||||||
Northern Europe & Central Asia 1) 2) |
-6 | % | -22 | % | 13 | % | -1 | % | -6 | % | -33 | % | ||||||||||||
Western & Central Europe 2) |
13 | % | -26 | % | 17 | % | -12 | % | 8 | % | -22 | % | ||||||||||||
Mediterranean 2) |
26 | % | -38 | % | 27 | % | -7 | % | 18 | % | -34 | % | ||||||||||||
Middle East |
38 | % | -41 | % | 6 | % | -12 | % | 44 | % | -34 | % | ||||||||||||
Sub Saharan Africa |
9 | % | -26 | % | 6 | % | 1 | % | 23 | % | -17 | % | ||||||||||||
India |
-10 | % | -15 | % | -13 | % | 19 | % | -14 | % | 49 | % | ||||||||||||
North East Asia |
8 | % | -37 | % | 40 | % | -9 | % | 15 | % | -35 | % | ||||||||||||
South East Asia & Oceania |
1 | % | -2 | % | 12 | % | -3 | % | 15 | % | -14 | % | ||||||||||||
Other 1) 2) |
-41 | % | -40 | % | 153 | % | 4 | % | -10 | % | -19 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
4 | % | -29 | % | 24 | % | -2 | % | 13 | % | -21 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
1) Of which in Sweden |
-57 | % | 15 | % | -14 | % | 90 | % | -45 | % | 4 | % | ||||||||||||
2) Of which in EU |
4 | % | -27 | % | 19 | % | -8 | % | 5 | % | -24 | % | ||||||||||||
2016 | 2015 | |||||||||||||||||||||||
Year-over-year change, percent |
Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||
North America |
-8 | % | 8 | % | 31 | % | 2 | % | -4 | % | 0 | % | ||||||||||||
Latin America |
-10 | % | -12 | % | -7 | % | -5 | % | -6 | % | -3 | % | ||||||||||||
Northern Europe & Central Asia 1) 2) |
-18 | % | -18 | % | -30 | % | -20 | % | -6 | % | 12 | % | ||||||||||||
Western & Central Europe 2) |
-13 | % | -17 | % | -13 | % | -2 | % | 12 | % | 8 | % | ||||||||||||
Mediterranean 2) |
-8 | % | -14 | % | -7 | % | 5 | % | 7 | % | 4 | % | ||||||||||||
Middle East |
-24 | % | -21 | % | -11 | % | -5 | % | 44 | % | 17 | % | ||||||||||||
Sub Saharan Africa |
-13 | % | -2 | % | 9 | % | 10 | % | 41 | % | 19 | % | ||||||||||||
India |
-20 | % | -24 | % | 34 | % | 81 | % | 85 | % | 108 | % | ||||||||||||
North East Asia |
-13 | % | -7 | % | -3 | % | -10 | % | 8 | % | 23 | % | ||||||||||||
South East Asia & Oceania |
8 | % | 22 | % | 8 | % | 25 | % | 34 | % | 24 | % | ||||||||||||
Other 1) 2) |
-6 | % | 43 | % | 91 | % | 4 | % | 1 | % | 15 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
-11 | % | -2 | % | 8 | % | 3 | % | 11 | % | 13 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
1) Of which in Sweden |
-20 | % | 2 | % | -7 | % | 4 | % | -41 | % | 9 | % | ||||||||||||
2) Of which in EU |
-16 | % | -15 | % | -12 | % | -1 | % | 11 | % | 12 | % |
30 Ericsson | Second Quarter Report 2016
BY REGION BY QUARTER, CONT.
2016 | 2015 | |||||||||||||||||||||||
Year to date, SEK million |
Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | ||||||||||||||||||
North America |
26,608 | 13,182 | 58,261 | 41,179 | 26,824 | 12,246 | ||||||||||||||||||
Latin America |
8,582 | 4,040 | 21,357 | 15,251 | 9,641 | 4,574 | ||||||||||||||||||
Northern Europe & Central Asia 1) 2) |
4,315 | 2,222 | 10,649 | 7,802 | 5,282 | 2,726 | ||||||||||||||||||
Western & Central Europe 2) |
8,419 | 3,953 | 19,732 | 14,412 | 9,872 | 4,741 | ||||||||||||||||||
Mediterranean 2) |
9,723 | 4,296 | 23,310 | 16,339 | 10,869 | 4,982 | ||||||||||||||||||
Middle East |
8,488 | 3,567 | 22,849 | 16,760 | 11,032 | 4,517 | ||||||||||||||||||
Sub Saharan Africa |
4,433 | 2,120 | 10,349 | 7,502 | 4,811 | 2,158 | ||||||||||||||||||
India |
5,109 | 2,683 | 13,381 | 10,209 | 6,580 | 3,531 | ||||||||||||||||||
North East Asia |
11,620 | 5,579 | 28,237 | 19,321 | 12,973 | 6,030 | ||||||||||||||||||
South East Asia & Oceania |
10,471 | 5,199 | 19,235 | 13,906 | 9,156 | 4,259 | ||||||||||||||||||
Other 1) 2) |
8,549 | 5,368 | 19,560 | 10,671 | 7,151 | 3,756 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
106,317 | 52,209 | 246,920 | 173,352 | 114,191 | 53,520 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
1) Of which in Sweden |
1,590 | 1,113 | 3,796 | 2,824 | 1,689 | 1,091 | ||||||||||||||||||
2) Of which in EU |
18,864 | 9,229 | 45,585 | 32,941 | 22,357 | 10,904 | ||||||||||||||||||
2016 | 2015 | |||||||||||||||||||||||
Year to date, year-over-year change, percent |
Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | ||||||||||||||||||
North America |
-1 | % | 8 | % | 7 | % | -1 | % | -2 | % | 0 | % | ||||||||||||
Latin America |
-11 | % | -12 | % | -5 | % | -5 | % | -5 | % | -3 | % | ||||||||||||
Northern Europe & Central Asia 1) 2) |
-18 | % | -18 | % | -14 | % | -6 | % | 3 | % | 12 | % | ||||||||||||
Western & Central Europe 2) |
-15 | % | -17 | % | 0 | % | 6 | % | 10 | % | 8 | % | ||||||||||||
Mediterranean 2) |
-11 | % | -14 | % | 1 | % | 5 | % | 6 | % | 4 | % | ||||||||||||
Middle East |
-23 | % | -21 | % | 7 | % | 16 | % | 32 | % | 17 | % | ||||||||||||
Sub Saharan Africa |
-8 | % | -2 | % | 18 | % | 22 | % | 30 | % | 19 | % | ||||||||||||
India |
-22 | % | -24 | % | 74 | % | 91 | % | 97 | % | 108 | % | ||||||||||||
North East Asia |
-10 | % | -7 | % | 2 | % | 5 | % | 15 | % | 23 | % | ||||||||||||
South East Asia & Oceania |
14 | % | 22 | % | 21 | % | 28 | % | 29 | % | 24 | % | ||||||||||||
Other 1) 2) |
20 | % | 43 | % | 33 | % | 7 | % | 8 | % | 15 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
-7 | % | -2 | % | 8 | % | 8 | % | 12 | % | 13 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
1) Of which in Sweden |
-6 | % | 2 | % | -8 | % | -9 | % | -16 | % | 9 | % | ||||||||||||
2) Of which in EU |
-16 | % | -15 | % | 1 | % | 7 | % | 12 | % | 12 | % |
Country | Q2 | Jan-Jun | ||||||||||||||
As percentage of net sales |
2016 | 2015 | 2016 | 2015 | ||||||||||||
United States |
26 | % | 24 | % | 26 | % | 24 | % | ||||||||
China |
8 | % | 9 | % | 9 | % | 8 | % | ||||||||
India |
5 | % | 5 | % | 5 | % | 6 | % | ||||||||
United Kingdom |
3 | % | 3 | % | 3 | % | 3 | % | ||||||||
Italy |
3 | % | 3 | % | 3 | % | 3 | % |
31 Ericsson | Second Quarter Report 2016
NET SALES BY REGION BY SEGMENT
Q2 2016 | Jan-Jun 2016 | |||||||||||||||||||||||||||||||
SEK million |
Networks | Global Services |
Support Solutions |
Total | Networks | Global Services |
Support Solutions |
Total | ||||||||||||||||||||||||
North America |
6,606 | 6,080 | 740 | 13,426 | 12,947 | 12,158 | 1,503 | 26,608 | ||||||||||||||||||||||||
Latin America |
2,096 | 2,257 | 189 | 4,542 | 4,119 | 4,072 | 391 | 8,582 | ||||||||||||||||||||||||
Northern Europe & Central Asia |
970 | 1,071 | 52 | 2,093 | 2,312 | 1,878 | 125 | 4,315 | ||||||||||||||||||||||||
Western & Central Europe |
1,711 | 2,633 | 122 | 4,466 | 3,006 | 5,155 | 258 | 8,419 | ||||||||||||||||||||||||
Mediterranean |
2,114 | 3,114 | 199 | 5,427 | 3,573 | 5,804 | 346 | 9,723 | ||||||||||||||||||||||||
Middle East |
1,871 | 2,777 | 273 | 4,921 | 3,278 | 4,673 | 537 | 8,488 | ||||||||||||||||||||||||
Sub Saharan Africa |
989 | 1,217 | 107 | 2,313 | 1,858 | 2,304 | 271 | 4,433 | ||||||||||||||||||||||||
India |
991 | 1,259 | 176 | 2,426 | 2,270 | 2,487 | 352 | 5,109 | ||||||||||||||||||||||||
North East Asia |
4,203 | 1,756 | 82 | 6,041 | 7,747 | 3,673 | 200 | 11,620 | ||||||||||||||||||||||||
South East Asia & Oceania |
3,189 | 2,010 | 73 | 5,272 | 6,374 | 3,938 | 159 | 10,471 | ||||||||||||||||||||||||
Other |
2,025 | 307 | 849 | 3,181 | 5,101 | 1,357 | 2,091 | 8,549 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
26,765 | 24,481 | 2,862 | 54,108 | 52,585 | 47,499 | 6,233 | 106,317 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Share of Total |
50 | % | 45 | % | 5 | % | 100 | % | 49 | % | 45 | % | 6 | % | 100 | % |
Q2 2016 | ||||||||||||||||
Sequential change, percent |
Networks | Global Services |
Support Solutions |
Total | ||||||||||||
North America |
4 | % | 0 | % | -3 | % | 2 | % | ||||||||
Latin America |
4 | % | 24 | % | -6 | % | 12 | % | ||||||||
Northern Europe & Central Asia |
-28 | % | 33 | % | -29 | % | -6 | % | ||||||||
Western & Central Europe |
32 | % | 4 | % | -10 | % | 13 | % | ||||||||
Mediterranean |
45 | % | 16 | % | 35 | % | 26 | % | ||||||||
Middle East |
33 | % | 46 | % | 3 | % | 38 | % | ||||||||
Sub Saharan Africa |
14 | % | 12 | % | -35 | % | 9 | % | ||||||||
India |
-23 | % | 3 | % | 0 | % | -10 | % | ||||||||
North East Asia |
19 | % | -8 | % | -31 | % | 8 | % | ||||||||
South East Asia & Oceania |
0 | % | 4 | % | -15 | % | 1 | % | ||||||||
Other |
-34 | % | -71 | % | -32 | % | -41 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
4 | % | 6 | % | -15 | % | 4 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Q2 2016 | ||||||||||||||||
Year over year change, percent |
Networks | Global Services |
Support Solutions |
Total | ||||||||||||
North America |
-1 | % | -14 | % | -13 | % | -8 | % | ||||||||
Latin America |
-7 | % | -14 | % | 4 | % | -10 | % | ||||||||
Northern Europe & Central Asia |
-37 | % | 13 | % | -22 | % | -18 | % | ||||||||
Western & Central Europe |
-10 | % | -15 | % | -16 | % | -13 | % | ||||||||
Mediterranean |
-12 | % | -5 | % | 4 | % | -8 | % | ||||||||
Middle East |
-54 | % | 29 | % | -15 | % | -24 | % | ||||||||
Sub Saharan Africa |
-20 | % | -3 | % | -31 | % | -13 | % | ||||||||
India |
-46 | % | 18 | % | 11 | % | -20 | % | ||||||||
North East Asia |
-12 | % | -10 | % | -58 | % | -13 | % | ||||||||
South East Asia & Oceania |
27 | % | -12 | % | -28 | % | 8 | % | ||||||||
Other |
3 | % | -55 | % | 17 | % | -6 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
-14 | % | -7 | % | -7 | % | -11 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Jan-Jun 2016 | ||||||||||||||||
Year over year change, percent |
Networks | Global Services |
Support Solutions |
Total | ||||||||||||
North America |
10 | % | -9 | % | -8 | % | -1 | % | ||||||||
Latin America |
-6 | % | -16 | % | -2 | % | -11 | % | ||||||||
Northern Europe & Central Asia |
-31 | % | 5 | % | -11 | % | -18 | % | ||||||||
Western & Central Europe |
-15 | % | -14 | % | -18 | % | -15 | % | ||||||||
Mediterranean |
-17 | % | -7 | % | 2 | % | -11 | % | ||||||||
Middle East |
-49 | % | 14 | % | 6 | % | -23 | % | ||||||||
Sub Saharan Africa |
-7 | % | -5 | % | -31 | % | -8 | % | ||||||||
India |
-42 | % | 15 | % | -27 | % | -22 | % | ||||||||
North East Asia |
-12 | % | -7 | % | -21 | % | -10 | % | ||||||||
South East Asia & Oceania |
29 | % | -3 | % | -12 | % | 14 | % | ||||||||
Other |
24 | % | -3 | % | 38 | % | 20 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
-9 | % | -6 | % | 1 | % | -7 | % | ||||||||
|
|
|
|
|
|
|
|
32 Ericsson | Second Quarter Report 2016
2016 | 2015 | |||||||||||||||||||||||
Isolated quarters, SEK million |
Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||
Opening balance |
3,532 | 3,838 | 4,331 | 5,354 | 4,056 | 4,427 | ||||||||||||||||||
Additions |
839 | 492 | 589 | 695 | 2,777 | 915 | ||||||||||||||||||
Utilization/Cash out |
-794 | -667 | -1,096 | -1,545 | -1,217 | -1,204 | ||||||||||||||||||
Of which restructuring |
-639 | -487 | -754 | -1,103 | -472 | -437 | ||||||||||||||||||
Reversal of excess amounts |
-240 | -67 | 87 | -168 | -161 | -236 | ||||||||||||||||||
Reclassification, translation difference and other |
50 | -64 | -73 | -5 | -101 | 154 | ||||||||||||||||||
Closing balance |
3,387 | 3,532 | 3,838 | 4,331 | 5,354 | 4,056 | ||||||||||||||||||
2016 | 2015 | |||||||||||||||||||||||
Year to date, SEK million |
Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | ||||||||||||||||||
Opening balance |
3,838 | 3,838 | 4,427 | 4,427 | 4,427 | 4,427 | ||||||||||||||||||
Additions |
1,331 | 492 | 4,976 | 4,387 | 3,692 | 915 | ||||||||||||||||||
Utilization/Cash out |
-1,461 | -667 | -5,062 | -3,966 | -2,421 | -1,204 | ||||||||||||||||||
Of which restructuring |
-1,126 | -487 | -2,766 | -2,012 | -909 | -437 | ||||||||||||||||||
Reversal of excess amounts |
-307 | -67 | -478 | -565 | -397 | -236 | ||||||||||||||||||
Reclassification, translation difference and other |
-14 | -64 | -25 | 48 | 53 | 154 | ||||||||||||||||||
Closing balance |
3,387 | 3,532 | 3,838 | 4,331 | 5,354 | 4,056 |
Investments in assets subject to depreciation, amortization, impairment and write-downs
2016 | 2015 | |||||||||||||||||||||||
Isolated quarters, SEK million |
Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||
Additions |
||||||||||||||||||||||||
Property, plant and equipment |
1,572 | 1,474 | 1,739 | 1,807 | 2,424 | 2,367 | ||||||||||||||||||
Capitalized development expenses 1) |
1,099 | 1,208 | 1,183 | 982 | 843 | 294 | ||||||||||||||||||
IPR, brands and other intangible assets |
13 | 5 | 23 | 10 | 26 | 11 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
2,684 | 2,687 | 2,945 | 2,799 | 3,293 | 2,672 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Depreciation, amortization and impairment losses |
||||||||||||||||||||||||
Property, plant and equipment |
1,083 | 1,062 | 1,194 | 1,129 | 1,152 | 1,214 | ||||||||||||||||||
Capitalized development expenses |
386 | 351 | 349 | 354 | 333 | 342 | ||||||||||||||||||
IPR, brands and other intangible assets, etc. |
635 | 684 | 978 | 942 | 1,094 | 1,125 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
2,104 | 2,097 | 2,521 | 2,425 | 2,579 | 2,681 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
1) | Including reclassification |
33 Ericsson | Second Quarter Report 2016
Apr-Jun | Jan-Jun | Jan-Dec | ||||||||||||||||||
SEK million |
2016 | 2015 | 2016 | 2015 | 2015 | |||||||||||||||
Number of shares and earnings per share |
||||||||||||||||||||
Number of shares, end of period (million) |
3,331 | 3,305 | 3,331 | 3,305 | 3,305 | |||||||||||||||
Of which class A-shares (million) |
262 | 262 | 262 | 262 | 262 | |||||||||||||||
Of which class B-shares (million) |
3,069 | 3,043 | 3,069 | 3,043 | 3,043 | |||||||||||||||
Number of treasury shares, end of period (million) |
69 | 57 | 69 | 57 | 49 | |||||||||||||||
Number of shares outstanding, basic, end of period (million) |
3,262 | 3,248 | 3,262 | 3,248 | 3,256 | |||||||||||||||
Numbers of shares outstanding, diluted, end of period (million) |
3,298 | 3,281 | 3,298 | 3,281 | 3,289 | |||||||||||||||
Average number of treasury shares (million) |
55 | 58 | 55 | 59 | 56 | |||||||||||||||
Average number of shares outstanding, basic (million) |
3,261 | 3,247 | 3,259 | 3,246 | 3,249 | |||||||||||||||
Average number of shares outstanding, diluted (million) 1) |
3,297 | 3,280 | 3,296 | 3,278 | 3,282 | |||||||||||||||
Earnings per share, basic (SEK) |
0.49 | 0.64 | 1.09 | 1.05 | 4.17 | |||||||||||||||
Earnings per share, diluted (SEK) 1) |
0.48 | 0.64 | 1.08 | 1.04 | 4.13 | |||||||||||||||
Earnings per share (Non-IFRS), diluted (SEK) 2) |
0.83 | 1.45 | 1.70 | 2.22 | 6.06 | |||||||||||||||
Ratios |
||||||||||||||||||||
Days sales outstanding |
| | 115 | 112 | 87 | |||||||||||||||
Inventory turnover days |
83 | 74 | 81 | 74 | 64 | |||||||||||||||
Payable days |
56 | 52 | 59 | 57 | 53 | |||||||||||||||
Equity ratio (%) |
| | 49.3 | % | 49.0 | % | 51.8 | % | ||||||||||||
Return on equity (%) |
4.5 | % | 5.9 | % | 5.0 | % | 4.9 | % | 9.3 | % | ||||||||||
Return on capital employed (%) |
6.0 | % | 6.9 | % | 6.5 | % | 6.5 | % | 11.6 | % | ||||||||||
Capital turnover (times) |
1.1 | 1.3 | 1.1 | 1.2 | 1.3 | |||||||||||||||
Cash conversion (%) |
-54.0 | % | 90.2 | % | -62.3 | % | -43.1 | % | 84.8 | % | ||||||||||
Exchange rates used in the consolidation 3) |
||||||||||||||||||||
SEK/EUR- closing rate |
| | 9.42 | 9.22 | 9.17 | |||||||||||||||
SEK/USD- closing rate |
| | 8.45 | 8.24 | 8.40 | |||||||||||||||
Other |
||||||||||||||||||||
Regional inventory, end of period |