Telefonaktiebolaget LM Ericsson Class A · OMXSTO:ERIC_A

Telefonaktiebolaget LM Ericsson Class A — Ericsson — Q2 2004 Earnings Presentation

15 slides from Telefonaktiebolaget LM Ericsson Class A's earnings presentation, 2004

  1. Slide 1: Second Quarter Report 2004

    Second Quarter Report 2004 © Copyright Telefon AB LM Ericsson 2004. All rights reserved

  2. Slide 2: Carl-Henric Svanberg, President and CEO

    Second Quarter Report CARL-HENRIC SVANBERG President and CEO © Copyright Telefon AB LM Ericsson 2004. All rights reserved

  3. Slide 3: Strengthening leadership position

    Strengthening leadership position ƒ Solid performance – Orders booked and sales up 17% and 18% year-over-year – Operating income SEK 7.4 b., operating margin 22.8% ƒ Operational excellence leads the way – Committed organization – exceeding expectations – Clarity and simplicity – best in class margin

  4. Slide 4: Our way to success

    Our way to success True world leadership Satisfied customers Profitable growth Performance to drive destiny Operational excellence Inspired, responsive employees © Copyright Telefon AB LM Ericsson 2004. All rights reserved SECOND QUARTER REPORT 2004 4

  5. Slide 5: Our global presence

    Our global presence ƒ 140 countries – More than a century in most markets – long-term commitments ƒ Local presence globally – 20,000 employees in sales, services and technical support ƒ Market leader in high growth markets – ~50% of our sales – subscriber potential accelerating The prime driver in a

  6. Slide 6: Network convergence in focus

    Network convergence in focus ƒ Seamless services fixed and mobile – Ease-of-use and ”always best connected” – Driven by mobility behavior ƒ New revenue generating opportunities – Richer consumer experiences with all-IP multimedia services ƒ Opportunities for reduced operator cost – Efficiency gains

  7. Slide 7: Business highlights – 3G status

    Business highlights – 3G status ƒ Strong global 3G subscription growth – ~7 million, up 60% sequentially in WCDMA – ~100 million subscriptions in CDMA2000 1X ƒ WCDMA a natural evolution of GSM – 1/3 upgrading so far – common core network & services ƒ WCDMA/EDGE 30% of radio access – Ericsson in 21 o

  8. Slide 8: Business highlights – 2G and services

    Business highlights – 2G and services ƒ GSM potential underestimated – Continued rollout and momentum in all markets ƒ Contract wins for Ericsson Expander – Latin America, Asia Pacific and Africa ƒ Eight managed services/hosting contracts announced – Hosting speeds up launch of new consumer services

  9. Slide 9: Ericsson WCDMA Evolved, HSDPA

    Ericsson WCDMA Evolved, HSDPA ƒ True mobile broadband - up to 14 Mbit/s – Easy upgrade of Ericsson 3G base stations ƒ Richer consumer experience – Faster downloading – Internet access – streaming ƒ Field trial systems delivered – Commercial systems available 2005 The prime driver in an all-communica

  10. Slide 10: Q2 financial highlights

    Q2 financial highlights ƒ Orders booked SEK 33.1 (28.3) b. – Up 17% year-over-year ƒ Sales SEK 32.6 (27.6) b. – Up 18% year-over-year ƒ Gross margin 47.8% (35.1%) – Up 3.1 percentage points sequentially The prime driver in an all-communicating world © Copyright Telefon AB LM Ericsson 2004. All right

  11. Slide 11: Q2 financial highlights (cont.)

    Q2 financial highlights (cont.) ƒ Income after financials SEK 7.5*(0.2) b. – Operating margin of 22.8%* ƒ Cash flow bef. financing SEK 4.3 (5.1) b. – Cash flow from operations SEK 7.1 b. ƒ Debt free with net cash of SEK 31.7 b. – Strong financial position *excluding positive non-recurring effect of

  12. Slide 12: Sony Ericsson Q2 highlights

    Sony Ericsson Q2 highlights ƒ Continued growth – Units up 55%, sales up 34% year-on-year ƒ Income before tax EUR 113 m. – Fourth consecutive quarter of increased profitability ƒ Upgraded global market outlook – Approximately 600 million units 2004 Innovative products drive growth © Copyright Telefon

  13. Slide 13: Market outlook 2004

    Market outlook 2004 ƒ Traffic increase should generate slight to moderate growth (USD) ƒ Additional effect from catch up continues but should abate over time ƒ Good growth in professional services market Well positioned to capture market opportunities © Copyright Telefon AB LM Ericsson 2004. All rig

  14. Slide 14: Summary

    Summary ƒ Confidence has returned to the industry – Increased focus on business development and revenue growth ƒ True mobile broadband expands market – We are leveraging our market and technology leadership ƒ Operational excellence with a clear target – Satisfied customers – ”best in class” margins

  15. Slide 15: Questions & Answers

    Second Quarter Report QUESTIONS & ANSWERS © Copyright Telefon AB LM Ericsson 2004. All rights reserved

Ericsson — Q2 2004 Earnings Presentation on 6ix