Telefonaktiebolaget LM Ericsson Class A · OMXSTO:ERIC_A
Telefonaktiebolaget LM Ericsson Class A — Ericsson — Q1 2004 Earnings Presentation
14 slides from Telefonaktiebolaget LM Ericsson Class A's earnings presentation, 2004
Slide 1: First Quarter Report 2004
First Quarter FIRST QUARTER REPORT 2004 © Copyright Ericsson AB 2004. All rights reserved
Slide 2: First Quarter Report 2004
First Quarter FIRST QUARTER REPORT 2004 © Copyright Ericsson AB 2004. All rights reserved
Slide 3: Carl-Henric Svanberg, President and CEO
First Quarter CARL-HENRIC SVANBERG President and CEO © Copyright Ericsson AB 2004. All rights reserved
Slide 4: Benefits from successful turnaround
Benefits from successful turnaround Orders booked up 22% year-over-year Sales up 9% year-over-year Income after financial items SEK 4.3 b. Sony Ericsson’s strongest quarter so far Prerequisites for true leadership established © Copyright Ericsson AB 2004. All rights reserved 4
Slide 5: Strengthened market position
Strengthened market position Strengthened position in mobile systems – GSM/EDGE/WCDMA/CDMA2000 Prime driver in professional services – Operators increase consumer and market focus Leader in softswitch – Opportunities from IP convergence Innovation, responsiveness and reliability in focus © Cop
Slide 6: Expanding vendor role
Expanding vendor role Multifaceted operator environment – Advanced technology with ease-of-use Vendor solutions in focus – End-to-end and seamless services Vendors becoming strategic partners – Long-term relationships – R&D roadmap focus Leveraging technology and customer relationships © Copyr
Slide 7: Business highlights
Business highlights Four 3G contracts – 1 WCDMA, 3 EDGE Seven services contracts announced – Managed services and hosting Continued good demand for GSM – Ericsson Expander well received Further strengthened competitive advantages © Copyright Ericsson AB 2004. All rights reserved 7
Slide 8: 3G status
3G status 24 commercial WCDMA networks – Ericsson in 15 networks Strong global 3G subscription growth – ~4.4 million, up 57% sequentially in WCDMA – ~95 million, up 35% sequentially in CDMA2000 1X Quickly growing focus on new applications – Mobile office, news broadcasting, video telephony Mom
Slide 9: Q1 financial highlights
Q1 financial highlights Orders booked SEK 33.0 (27.1) b. – Up 22% year-over-year Sales SEK 28.1 (25.9) b. – Up 9% year-over-year Gross margin 44.7% (34.1%) – Up 3.1 percentage points sequentially Operational excellence as a competitive tool © Copyright Ericsson AB 2004. All rights reserved 9
Slide 10: Q1 financial highlights (cont.)
Q1 financial highlights (cont.) Income after financials SEK 4.3 (-2.8) b. – Operating margin of 16% Cash flow bef. financing SEK 2.9 (0.7) b. Net cash of SEK 26.8 b. – Strong financial position Prepared for a competitive market © Copyright Ericsson AB 2004. All rights reserved 10
Slide 11: Sony Ericsson Q1 highlights
Sony Ericsson Q1 highlights Strong growth – Units shipped up 63% year-on-year – Sales up 66% year-on-year Income before tax EUR 97 m. – Contributions from focus on operational excellence Well received product offering – T 610 selected ”the phone of the year” world wide Strongest quarter so far
Slide 12: Market outlook 2004
Market outlook 2004 Mobile systems market now estimated to show slight to moderate growth Good growth in professional services markets Well positioned to benefit from the market opportunities Still elements of catch-up This slide contains forward looking statements © Copyright Ericsson AB 2004
Slide 13: Summary
Summary Benefits from completed turnaround – Focus on operational excellence is here to stay Strengthened market position – Innovation, responsiveness and reliability in focus Vendor role develops to strategic partner – Leverage technology and customer relationships © Copyright Ericsson AB 200
Slide 14: Questions & Answers
First Quarter QUESTIONS & ANSWERS © Copyright Ericsson AB 2004. All rights reserved