Telefonaktiebolaget LM Ericsson Class A · OMXSTO:ERIC_A

Telefonaktiebolaget LM Ericsson Class A — Q2 2004 Earnings Presentation

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

  1. Slide 1: Second Quarter Report

    Second Quarter Report KARL-HENRIK SUNDSTRÖM CFO © Copyright Telefon AB LM Ericsson 2004. All rights reserved

  2. Slide 2: Safe Harbor Statement

    Safe Harbor Statement This presentation contains forward looking statements. Such statements are based on our current expectations and are subject to certain risks and uncertainties that could negatively affect our business. Please read our earnings reports and our most recent annual report for a be

  3. Slide 3: Financial summary

    Financial summary (SEK b.) Seq. % Q203 Q104 Q204 change Orders, net 28.3 33.0 33.1 0% Sales 27.6 28.1 32.6 16% Gross margin (%) 35.1 44.7 47.8 Operating margin (%) 0.8 16.1 22.8 * Income after financial items 0.2 4.3 7.5* EBITDA (%) 5.5 20.0 26.4 * *Adjusted to exclude a one-time positive effect of

  4. Slide 4: Book-to-bill Q2 2004

    Book-to-bill Q2 2004 (SEK b.) YoY % % of Book- Region Orders Sales change sales to-bill Western Europe 10.1 9.4 10% 29% 1.1 CEMA 7.7 7.7 19% 24% 1.0 North America 2.4 4.9 17% 15% 0.5 Latin America 4.6 3.5 57% 10% 1.3 Asia Pacific 8.3 7.1 16% 22% 1.2 Total 33.1 32.6 18% 100% 1.02 Another quarter with

  5. Slide 5: Systems

    Systems (SEK b.) Seq. % Q203 Q104 Q204 change Orders 26.3 31.1 31.2 0% Sales 25.2 26.1 30.4 16% Operating income 0.6 4.2 6.3 Operating margin(%) 2.4 16.1 20.8 Mobile Networks sales up 28% YoY © Copyright Telefon AB LM Ericsson 2004. All rights reserved SECOND QUARTER REPORT 2004 5

  6. Slide 6: Other operations

    Other operations (SEK b.) Seq % Q203 Q104 Q204 change Orders 2.3 2.4 2.7 13% Sales 2.5 2.4 2.8 15% Operating income -0.3 0.0 0.6 Operating margin (%) -13.8 1.8 20.0 Strong performance across most businesses © Copyright Telefon AB LM Ericsson 2004. All rights reserved SECOND QUARTER REPORT 2004 6

  7. Slide 7: Strong financial performance

    Strong financial performance (SEK b.) Q203 Q104 Q204 Net income -2.7 3.0 5.3 Adj. income to cash 1.1 1.8 1.7 Income to cash -1.6 4.8 7.0 Working capital 7.3 -1.5 -0.5 Cash flow from operating activities 5.7 3.2 6.5 Investing activities -0.6 -0.3 -2.2 Cash flow before financing activities 5.1 2.9 4.3

  8. Slide 8: Operating efficiency trends

    Operating efficiency trends Q203 Q104 Q204 Accounts receivable (SEK b.) 30.8 32.8 31.8 DSO 101 102 88 Inventories (SEK b.) 12.8 14.4 14.8 Inventory turnover 5.3 4.9 5.1 Accounts payable (SEK b.) 9.0 9.3 9.7 Payable days 45 54 52 Inventories reflect increased level of business activity © Copyright Te

  9. Slide 9: Sony Ericsson

    Sony Ericsson Q203 Q104 Q204 Number of units shipped (million) 6.7 8.8 10.4 Sales (EUR m.) 1,125 1,338 1,504 IBT -102 97 113 Net income -88 82 89 Ericsson share in earnings (SEK b.) -0.5* 0.5 0.5 *Including restructuring cost of SEK -0.3 b. Innovative products drive growth © Copyright Telefon AB LM

  10. Slide 10: 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

  11. Slide 11: Questions & Answers

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

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