Ericsson

Operations

As the world’s largest supplier of network equipment and related services to telecom operators, Ericsson is a global player with customers in more than 175 countries and one of the few companies that can offer end-to-end solutions for all major mobile communication standards.

Ericsson is the world leader in 2G (GSM) and 3G (WCDMA/HSPA) mobile networks. The company also has a leading position in LTE, the emerging global mobile broadband standard. Long-term relationships with all major operators result in Ericsson serving well over 40% of all mobile subscribers.

Today Ericsson has a strong product portfolio in mobile as well as fixed line networks and systems for distribution of digital services via the Internet. The fast-growing service segment, in which the company has a leading position, makes up an increasingly important part of the business. Today Ericsson’s services business – which shows good margins – accounts for 40% of consolidated sales. Ericsson also conducts own mobile phone business through half-owned Sony Ericsson Mobile Communications and ST-Ericsson.

Ericsson - Our ownership perspective

The market’s largest and most profitable supplier of mobile telephony infrastructure, with a leading position in telecom development.

• Strong position ahead of operators’ investments in the next generation of telecom systems (LTE).
• Acquisition of Nortel’s U.S. mobile systems business strengthens Ericsson’s position in North America.
• Good growth and profitability in the Services segment.
• Restructuring program to lower costs by SEK 15–16 billion starting in second half of 2010.

Ownership focus

Continued growth based on the company’s leading position in end-toend telecommunications solutions.

Ericsson - Performance 2009

• Net sales were level with a year ago and amounted to SEK 206.5 billion.
• Income after net financial items fell 24% to SEK 18.8 billion (24.8), excluding SEK 11.3 billion in restructuring costs.
• Ericsson acquired Nortel’s North American mobile systems business and the European company STElectronics, a manufacturer of semiconductor components for mobile applications.
• In all, the cost-cutting program is expected to generate annual cost reductions of SEK 15–16 billion starting with the second half of 2010.
• Hans Vesterberg took office as new President and CEO on January 1, 2010.