We use cookies to ensure that we give you the best experience on our website. Read more

  1. Startpage
  2. / Operations
  3. / Equities portfolio
  4. / Ericsson

Ericsson

Ericsson is a global telecommunications company that provides communication infrastructure and related services and software to the telecom industry and other sectors. The company is a technological leader in 5G, the fifth generation of mobile networks.

Operations are conducted in more than 180 countries. The business concept is to deliver value-added to customers by continuously developing its offering with focus on customers’ priorities in the key areas of new revenue streams, the end-customer experience and efficiency improvement. This work is based on Ericsson’s strengths: technology leadership, cost efficiency, data-driven operations, global scale and global expertise. These factors have given Ericsson a strong position in technology and services, which is illustrated by substantial investments in research and development and the market’s strongest patent portfolio.

Ericsson’s core business encompasses hardware and software for operators of radio and transport networks as well as solutions for 5G, the fifth generation of mobile networks. Customers’ needs to be able to handle a growing volume of data with maintained quality and unchanged costs are creating momentum for 5G, where Ericsson has a leading position. In addition to this, Ericsson delivers IT systems, communication systems, core networks and infrastructure that help telecom operators and other companies and sectors meet the challenges they are facing in the ongoing digital transformation, including cloud-based virtual networks and operational and optimization services for operators.

39_ericsson_864 × 576.jpg

Active ownership in practice – strategic development in recent years 

In its capacity as a long-term active owner, Industrivärden engages itself in the portfolio companies’ strategic development. Against the backdrop of the Company’s business model, this concerns mainly matters pertaining to the portfolio companies’ boards and management teams, financial development and matters such as strategy, market position, sustainability, efficiency and capital structure.

Following are examples of important corporate governance matters and major strategic activities for long-term value creation that the respective portfolio companies have taken in recent years, where Industrivärden has played an active role through its work on the board and nominating committee. F

Value-creating measures

  • Focused strategy and extensive measures to focus the business, increase profitability and strengthen the financial position
  • Implementation of new organization and company structure, adoption of new financial targets
  • Investments in R&D for regained technological leadership, with leading position in the next generation of mobile networks (5G) and strengthened market positions
  • Strategic acquisitions to create a platform in the global enterprise market for cloud-based communication
  • Integration of sustainability strategy with focus on responsible business, environmental sustainability and digital inclusion
  • Numerous new directors elected to board, election of Ronnie Leten as Chairman of the Board in 2018 and installation of Börje Ekholm as CEO in 2017

Result

  • Well-executed turnaround with significantly improved profitability and strengthened financial position
  • Leading position to capitalize on growth opportunities in 5G and the enterprise segment

 

For more information

Last update: 07 Jul 2022