SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN ISSUER
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
April 25, 2017
Commission File Number
000-12033
LM ERICSSON TELEPHONE COMPANY
(Translation of registrants name into English)
Torshamnsgatan 21, Kista
SE-164 83, Stockholm, Sweden
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐
Announcement of LM Ericsson Telephone Company, April 25, 2017 regarding Ericsson reports first quarter results 2017.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
TELEFONAKTIEBOLAGET LM ERICSSON (publ) | ||
By: | /S/ NINA MACPHERSON | |
Nina Macpherson | ||
Senior Vice President & Chief Legal Officer | ||
By: | /S/ HELENA NORRMAN | |
Helena Norrman | ||
Senior Vice President | ||
Corporate Marketing & Communications Officer |
Date: April 25, 2017
FIRST QUARTER 2017
Stockholm, April 25, 2017
FIRST QUARTER HIGHLIGHTS |
Read more | |||
| Reported sales decreased by -11% YoY. Sales, adjusted for currency, decreased -16% YoY partly due to lower IPR licensing revenues which amounted to SEK 2.0 (3.8) b. | 3 | ||
| Provisions and adjustments related to certain customer contracts of SEK -8.4 b., asset write-downs of SEK -3.3 b. and restructuring charges of SEK -1.7 b. were made in the quarter, in line with the announcement on March 28, 2017. | 2 | ||
| Gross margin was 13.9%. Adjusted1) gross margin declined to 30.5% (33.9%) mainly due to lower IPR licensing revenues. | 4 | ||
| Operating income was SEK -12.3 b. Adjusted 1) operating income declined to SEK 1.1 (4.1) b. due to lower sales and lower gross margin. | 4 | ||
| Networks operating margin was -2%. Networks adjusted1) operating margin was solid at 12%, despite lower sales including reduced IPR licensing revenues. | 2 | ||
| IT & Cloud operating income was SEK -9.0 b. Adjusted1) operating income for IT & Cloud showed a significant negative development YoY with increased losses. Actions have been initiated to improve performance. | 2 | ||
| Media operating income was SEK -2.8 b. Adjusted1) operating income was significantly reduced YoY. Strategic opportunities are being explored. | 2 | ||
| Cash flow from operating activities was SEK -1.5 (-2.4) b. | 9 |
1) | Restructuring, write-down of assets as well as provisions and adjustments related to certain customer projects had a significant negative impact on the reported Q1 2017 result. Numbers excluding these items are referred to in the text as adjusted, please see page 3 for reconciliation. |
SEK b. |
Q1 2017 |
Q1 2016 |
YoY change |
Q4 2016 |
QoQ change |
|||||||||||||||
Net sales |
46.4 | 52.2 | -11 | % | 65.2 | -29 | % | |||||||||||||
Sales growth adj. for comparable units and currency |
| | -16 | % | | -29 | % | |||||||||||||
Gross margin |
13.9 | % | 33.3 | % | | 26.1 | % | | ||||||||||||
Gross margin excluding restructuring charges and adjusted for items affecting comparability in Q1 2017 |
30.5 | % | 33.9 | % | | 29.4 | % | | ||||||||||||
Operating income |
-12.3 | 3.5 | | -0.3 | | |||||||||||||||
Operating income excluding restructuring charges and adjusted for items affecting comparability in Q1 2017 |
1.1 | 4.1 | -73 | % | 4.4 | -75 | % | |||||||||||||
Operating margin |
-26.6 | % | 6.7 | % | | -0.4 | % | | ||||||||||||
Operating margin excluding restructuring charges and adjusted for items affecting comparability in Q1 2017 |
2.3 | % | 7.9 | % | | 6.7 | % | | ||||||||||||
Net income |
-10.9 | 2.1 | | -1.6 | | |||||||||||||||
EPS diluted, SEK |
-3.29 | 0.60 | | -0.48 | | |||||||||||||||
EPS (Non-IFRS), SEK 2) |
-2.42 | 0.87 | | 0.62 | | |||||||||||||||
Cash flow from operating activities |
-1.5 | -2.4 | -35 | % | 19.4 | -108 | % | |||||||||||||
Net cash, end of period |
28.3 | 36.5 | -22 | % | 31.2 | -9 | % |
2) | EPS diluted, excl. amortizations and write-downs of acquired intangible assets, and excluding restructuring charges. |
Non-IFRS financial measures are reconciled to the most directly reconcilable line items in the financial statements at the end of this report.
1 Ericsson | First Quarter Report 2017
CEO Comments
2 Ericsson | First Quarter Report 2017
FINANCIAL HIGHLIGHTS
SEK b. |
Q1 2017 |
Q1 2016 |
YoY change |
Q4 2016 |
QoQ change |
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Net sales |
46.4 | 52.2 | -11 | % | 65.2 | -29 | % | |||||||||||||
Of which Networks |
34.9 | 39.9 | -13 | % | 47.8 | -27 | % | |||||||||||||
Of which IT & Cloud |
9.5 | 9.8 | -3 | % | 14.9 | -36 | % | |||||||||||||
Of which Media |
2.0 | 2.4 | -20 | % | 2.5 | -23 | % | |||||||||||||
Gross income |
6.4 | 17.4 | -63 | % | 17.0 | -62 | % | |||||||||||||
Gross margin (%) |
13.9 | % | 33.3 | % | | 26.1 | % | | ||||||||||||
Research and development expenses |
-9.1 | -7.5 | 21 | % | -8.9 | 2 | % | |||||||||||||
Selling and administrative expenses |
-9.9 | -6.7 | 47 | % | -8.8 | 12 | % | |||||||||||||
Other operating income and expenses |
0.1 | 0.3 | -48 | % | 0.4 | -61 | % | |||||||||||||
Operating income |
-12.3 | 3.5 | | -0.3 | | |||||||||||||||
Operating margin |
-26.6 | % | 6.7 | % | | -0.4 | % | | ||||||||||||
for Networks |
-2 | % | 14 | % | | 5 | % | | ||||||||||||
for IT & Cloud |
-94 | % | -20 | % | | -12 | % | | ||||||||||||
for Media |
-143 | % | -13 | % | | -33 | % | | ||||||||||||
Financial net |
-0.4 | -0.5 | -7 | % | -0.7 | -37 | % | |||||||||||||
Taxes |
1.9 | -0.9 | | -0.6 | | |||||||||||||||
Net income |
-10.9 | 2.1 | | -1.6 | | |||||||||||||||
Restructuring charges |
-1.7 | -0.6 | 176 | % | -4.6 | -63 | % |
Q1 2017 ADJUSTED FOR RESTRUCTURING CHARGES AND ITEMS AFFECTING COMPARABILITY
SEK b. |
Q1 2017 reported |
Restructuring charges |
Asset write-downs |
Provisions and customer project adjustments |
Q1 2017 adjusted |
Q1 2016 excl. restructuring charges |
Q4 2016 excl. restructuring charges |
|||||||||||||||||||||
Net sales |
46.4 | | | 1.4 | 47.8 | 52.2 | 65.2 | |||||||||||||||||||||
Gross income |
6.4 | 1.5 | | 6.7 | 14.6 | 17.7 | 19.2 | |||||||||||||||||||||
Gross margin (%) |
13.9 | % | | | | 30.5 | % | 33.9 | % | 29.4 | % | |||||||||||||||||
Research and development expenses |
-9.1 | 0.2 | 1.9 | 0.2 | -6.7 | -7.2 | -7.4 | |||||||||||||||||||||
Selling and administrative expenses |
-9.9 | 0.1 | 1.4 | 1.5 | -7.0 | -6.7 | -7.8 | |||||||||||||||||||||
Other operating income and expenses |
0.1 | | | | 0.1 | 0.3 | 0.4 | |||||||||||||||||||||
Operating income |
-12.3 | 1.7 | 3.3 | 8.4 | 1.1 | 4.1 | 4.4 | |||||||||||||||||||||
for Networks |
-0.5 | 1.4 | 0.1 | 3.3 | 4.3 | 6.2 | 4.8 | |||||||||||||||||||||
for IT & Cloud |
-9.0 | 0.2 | 1.5 | 5.0 | -2.2 | -1.8 | 0.0 | |||||||||||||||||||||
for Media |
-2.8 | 0.1 | 1.7 | | -1.0 | -0.3 | -0.4 | |||||||||||||||||||||
Operating margin |
-26.6 | % | | | | 2.3 | % | 7.9 | % | 6.7 | % |
3 Ericsson | First Quarter Report 2017
4 Ericsson | First Quarter Report 2017
REGIONAL SALES
First quarter 2017 | Change | |||||||||||||||||||||||
SEK b. |
Networks | IT & Cloud |
Media | Total | YoY | QoQ | ||||||||||||||||||
North America |
9.2 | 2.3 | 0.3 | 11.8 | -10 | % | -20 | % | ||||||||||||||||
Latin America |
2.0 | 0.8 | 0.0 | 2.9 | -29 | % | -42 | % | ||||||||||||||||
Northern Europe and Central Asia |
1.2 | 0.4 | 0.1 | 1.7 | -24 | % | -38 | % | ||||||||||||||||
Western and Central Europe |
2.5 | 0.7 | 0.4 | 3.6 | -17 | % | -21 | % | ||||||||||||||||
Mediterranean |
2.8 | 1.4 | 0.2 | 4.4 | 1 | % | -35 | % | ||||||||||||||||
Middle East |
2.4 | 1.0 | 0.1 | 3.5 | -3 | % | -45 | % | ||||||||||||||||
Sub-Saharan Africa |
1.4 | 0.5 | 0.0 | 1.9 | -9 | % | -29 | % | ||||||||||||||||
India |
1.8 | 0.6 | 0.0 | 2.4 | -10 | % | -20 | % | ||||||||||||||||
North East Asia |
4.6 | 0.9 | 0.0 | 5.6 | 0 | % | -42 | % | ||||||||||||||||
South East Asia and Oceania |
4.8 | 0.7 | 0.1 | 5.6 | 7 | % | -16 | % | ||||||||||||||||
Other 1) |
2.0 | 0.2 | 0.6 | 2.9 | -40 | % | 4 | % | ||||||||||||||||
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Total |
34.9 | 9.5 | 2.0 | 46.4 | -11 | % | -29 | % | ||||||||||||||||
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1) | Region Other includes licensing revenues, power modules, mobile broadband modules, Ericsson-LG Enterprise and other businesses. |
5 Ericsson | First Quarter Report 2017
SEGMENT RESULTS
NETWORKS
SEK b. |
Q1 2017 |
Q1 2016 |
YoY change |
Q4 2016 |
QoQ change |
|||||||||||||||
Net sales |
34.9 | 39.9 | -13 | % | 47.8 | -27 | % | |||||||||||||
Of which products |
19.4 | 22.8 | -15 | % | 27.5 | -29 | % | |||||||||||||
Of which services |
15.5 | 17.1 | -10 | % | 20.3 | -24 | % | |||||||||||||
Sales growth adj. for comparable units and currency |
| | -18 | % | | -27 | % | |||||||||||||
Gross income |
8.0 | 13.0 | -39 | % | 11.8 | -32 | % | |||||||||||||
Gross income excluding restructuring charges |
9.2 | 13.3 | -30 | % | 13.1 | -30 | % | |||||||||||||
Gross margin |
23 | % | 33 | % | | 25 | % | | ||||||||||||
Gross margin excluding restructuring charges |
26 | % | 33 | % | | 27 | % | | ||||||||||||
Operating income |
-0.5 | 5.8 | -109 | % | 2.4 | -123 | % | |||||||||||||
Operating income excluding restructuring charges |
0.9 | 6.2 | -85 | % | 4.8 | -81 | % | |||||||||||||
Operating margin |
-2 | % | 14 | % | | 5 | % | | ||||||||||||
Operating margin excluding restructuring charges |
3 | % | 16 | % | | 10 | % | | ||||||||||||
EBITA margin |
-1 | % | 15 | % | | 5 | % | | ||||||||||||
Restructuring charges |
-1.4 | -0.4 | | -2.4 | -40 | % |
Q1 2017 ADJUSTED FOR RESTRUCTURING CHARGES AND ITEMS AFFECTING COMPARABILITY
SEK b. |
Q1 2017 reported |
Restructuring charges |
Asset write-downs |
Provisions and customer project adjustments |
Q1 2017 adjusted |
Q1 2016 excl. restructuring charges |
Q4 2016 excl. restructuring charges |
|||||||||||||||||||||
Net Sales |
34.9 | | | 1.3 | 36.2 | 39.9 | 47.8 | |||||||||||||||||||||
Gross income |
8.0 | 1.3 | | 2.0 | 11.3 | 13.3 | 13.1 | |||||||||||||||||||||
Gross margin |
23 | % | | | | 31 | % | 33 | % | 27 | % | |||||||||||||||||
Operating income |
-0.5 | 1.4 | 0.1 | 3.3 | 4.3 | 6.2 | 4.8 | |||||||||||||||||||||
Operating margin |
-2 | % | | | | 12 | % | 16 | % | 10 | % |
6 Ericsson | First Quarter Report 2017
IT & CLOUD
SEK b. |
Q1 2017 |
Q1 2016 |
YoY change |
Q4 2016 |
QoQ change |
|||||||||||||||
Net sales |
9.5 | 9.8 | -3 | % | 14.9 | -36 | % | |||||||||||||
Of which products |
4.1 | 4.8 | -14 | % | 6.7 | -39 | % | |||||||||||||
Of which services |
5.4 | 5.1 | 8 | % | 8.2 | -34 | % | |||||||||||||
Sales growth adj. for comparable units and currency |
| | -7 | % | | -35 | % | |||||||||||||
Gross income |
-2.1 | 3.3 | -164 | % | 4.7 | -145 | % | |||||||||||||
Gross income excluding restructuring charges |
-1.9 | 3.4 | -158 | % | 5.3 | -136 | % | |||||||||||||
Gross margin |
-22 | % | 33 | % | | 31 | % | | ||||||||||||
Gross margin excluding restructuring charges |
-20 | % | 34 | % | | 36 | % | | ||||||||||||
Operating income |
-9.0 | -2.0 | | -1.8 | | |||||||||||||||
Operating income excluding restructuring charges |
-8.8 | -1.8 | | 0.0 | | |||||||||||||||
Operating margin |
-94 | % | -20 | % | | -12 | % | | ||||||||||||
Operating margin excluding restructuring charges |
-92 | % | -18 | % | | 0 | % | | ||||||||||||
EBITA margin |
-86 | % | -17 | % | | -11 | % | | ||||||||||||
Restructuring charges |
-0.2 | -0.2 | 26 | % | -1.8 | -87 | % |
Q1 2017 ADJUSTED FOR RESTRUCTURING CHARGES AND ITEMS AFFECTING COMPARABILITY
SEK b. |
Q1 2017 reported |
Restructuring charges |
Asset write-downs |
Provisions and customer project adjustments |
Q1 2017 adjusted |
Q1 2016 excl. restructuring charges |
Q4 2016 excl. restructuring charges |
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Net Sales |
9.5 | | | 0.1 | 9.6 | 9.8 | 14.9 | |||||||||||||||||||||
Gross income |
-2.1 | 0.2 | | 4.5 | 2.7 | 3.4 | 5.3 | |||||||||||||||||||||
Gross margin |
-22 | % | | | | 28 | % | 34 | % | 36 | % | |||||||||||||||||
Operating income |
-9.0 | 0.2 | 1.5 | 5.0 | -2.2 | -1.8 | 0.0 | |||||||||||||||||||||
Operating margin |
-94 | % | | | | -23 | % | -18 | % | 0 | % |
7 Ericsson | First Quarter Report 2017
MEDIA
SEK b. |
Q1 2017 |
Q1 2016 |
YoY change |
Q4 2016 |
QoQ change |
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Net sales |
2.0 | 2.4 | -20 | % | 2.5 | -23 | % | |||||||||||||
Sales growth adj. for comparable units and currency |
| | -22 | % | | -23 | % | |||||||||||||
Gross income |
0.6 | 1.1 | -49 | % | 0.6 | -1 | % | |||||||||||||
Gross income excluding restructuring charges |
0.6 | 1.1 | -46 | % | 0.7 | -13 | % | |||||||||||||
Gross margin |
28 | % | 45 | % | | 22 | % | | ||||||||||||
Gross margin excluding restructuring charges |
30 | % | 45 | % | | 27 | % | | ||||||||||||
Operating income |
-2.8 | -0.3 | | -0.8 | | |||||||||||||||
Operating income excluding restructuring charges |
-2.7 | -0.3 | | -0.4 | | |||||||||||||||
Operating margin |
-143 | % | -13 | % | | -33 | % | | ||||||||||||
Operating margin excluding restructuring charges |
-140 | % | -12 | % | | -17 | % | | ||||||||||||
EBITA margin |
-95 | % | -4 | % | | -26 | % | | ||||||||||||
Restructuring charges |
-0.1 | 0.0 | | -0.4 | -87 | % |
Q1 2017 ADJUSTED FOR RESTRUCTURING CHARGES AND ITEMS AFFECTING COMPARABILITY
SEK b. |
Q1 2017 reported |
Restructuring charges |
Asset write-downs |
Provisions and customer project adjustments |
Q1 2017 adjusted |
Q1 2016 excl. restructuring charges |
Q4 2016 excl. restructuring charges |
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Sales |
2.0 | | | | 2.0 | 2.4 | 2.5 | |||||||||||||||||||||
Gross income |
0.6 | 0.0 | | | 0.6 | 1.1 | 0.7 | |||||||||||||||||||||
Gross margin |
28 | % | | | | 31 | % | 45 | % | 27 | % | |||||||||||||||||
Operating income |
-2.8 | 0.1 | 1.7 | | -1.0 | -0.3 | -0.4 | |||||||||||||||||||||
Operating margin |
-143 | % | | | | -51 | % | -12 | % | -17 | % |
8 Ericsson | First Quarter Report 2017
CASH FLOW
SEK b. |
Q1 2017 |
Q1 2016 |
Q4 2016 |
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Net income reconciled to cash |
-9.2 | 3.6 | 1.6 | |||||||||
Changes in operating net assets |
7.7 | -6.0 | 17.9 | |||||||||
Cash flow from operating activities |
-1.5 | -2.4 | 19.4 | |||||||||
Cash flow from investing activities |
-13.6 | -1.0 | -6.6 | |||||||||
Cash flow from financing activities |
10.9 | 0.1 | -1.0 | |||||||||
Net change in cash and cash equivalents |
-4.0 | -4.3 | 12.6 | |||||||||
Cash conversion (%) |
n/a | -65 | % | 1,247 | % |
Working capital KPIs, number of days |
Jan-Mar 2017 |
Jan-Dec 2016 |
Jan-Sep 2016 |
Jan-Jun 2016 |
Jan-Mar 2016 |
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Sales outstanding (target: <90) |
117 | 95 | 122 | 115 | 108 | |||||||||||||||
Inventory (target: <65) |
73 | 69 | 79 | 81 | 80 | |||||||||||||||
Payable (target: >60) |
58 | 56 | 56 | 59 | 58 |
9 Ericsson | First Quarter Report 2017
FINANCIAL POSITION
SEK b. |
Mar 31 2017 |
Mar 31 2016 |
Dec 31 2016 |
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+ Cash and cash equivalents |
33.0 | 35.9 | 37.0 | |||||||||
+ Interest-bearing securities, current |
13.5 | 25.1 | 13.3 | |||||||||
+ Interest-bearing securities, non-current |
19.1 | | 7.6 | |||||||||
Gross cash |
65.6 | 61.0 | 57.9 | |||||||||
Borrowings, current |
9.5 | 2.4 | 8.0 | |||||||||
Borrowings, non-current |
27.8 | 22.1 | 18.7 | |||||||||
Net cash |
28.3 | 36.5 | 31.2 | |||||||||
Equity |
126.8 | 145.6 | 140.5 | |||||||||
Total assets |
292.2 | 280.3 | 283.3 | |||||||||
Capital turnover (times) |
1.0 | 1.1 | 1.2 | |||||||||
Return on capital employed (%) |
-26.2 | % | 6.9 | % | 3.2 | % | ||||||
Equity ratio (%) |
43.4 | % | 52.0 | % | 49.6 | % | ||||||
Return on equity (%) |
-32.8 | % | 5.4 | % | 1.2 | % |
10 Ericsson | First Quarter Report 2017
PARENT COMPANY
11 Ericsson | First Quarter Report 2017
OTHER INFORMATION
12 Ericsson | First Quarter Report 2017
RISK FACTORS
13 Ericsson | First Quarter Report 2017
EDITORS NOTE
14 Ericsson | First Quarter Report 2017
SAFE HARBOR STATEMENT
15 Ericsson | First Quarter Report 2017
AND OTHER INFORMATION
16 Ericsson | First Quarter Report 2017
FINANCIAL STATEMENTS
Jan-Mar | Jan-Dec | |||||||||||||||
SEK million |
2017 | 2016 | Change | 2016 | ||||||||||||
Net sales |
46,369 | 52,209 | -11 | % | 222,608 | |||||||||||
Cost of sales |
-39,931 | -34,819 | 15 | % | -156,243 | |||||||||||
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Gross income |
6,438 | 17,390 | -63 | % | 66,365 | |||||||||||
Gross margin (%) |
13.9 | % | 33.3 | % | 29.8 | % | ||||||||||
Research and development expenses |
-9,068 | -7,485 | 21 | % | -31,635 | |||||||||||
Selling and administrative expenses |
-9,861 | -6,720 | 47 | % | -28,866 | |||||||||||
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Operating expenses |
-18,929 | -14,205 | 33 | % | -60,501 | |||||||||||
Other operating income and expenses |
141 | 273 | 404 | |||||||||||||
Shares in earnings of JV and associated companies |
11 | 17 | 31 | |||||||||||||
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Operating income |
-12,339 | 3,475 | -455 | % | 6,299 | |||||||||||
Financial income |
-82 | -89 | -115 | |||||||||||||
Financial expenses |
-350 | -377 | -2,158 | |||||||||||||
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Income after financial items |
-12,771 | 3,009 | -524 | % | 4,026 | |||||||||||
Taxes |
1,916 | -903 | -2,131 | |||||||||||||
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Net income |
-10,855 | 2,106 | -615 | % | 1,895 | |||||||||||
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Net income attributable to: |
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Stockholders of the Parent Company |
-10,897 | 1,966 | 1,716 | |||||||||||||
Non-controlling interests |
42 | 140 | 179 | |||||||||||||
Other information |
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Average number of shares, basic (million) |
3,272 | 3,258 | 3,263 | |||||||||||||
Earnings per share, basic (SEK) 1) |
-3.33 | 0.60 | 0.53 | |||||||||||||
Earnings per share, diluted (SEK) 1) |
-3.29 | 0.60 | 0.52 |
1) | Based on Net income attributable to stockholders of the Parent Company. |
STATEMENT OF COMPREHENSIVE INCOME
Jan-Mar | Jan-Dec | |||||||||||
SEK million |
2017 | 2016 | 2016 | |||||||||
Net income |
-10,855 | 2,106 | 1,895 | |||||||||
Other comprehensive income |
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Items that will not be reclassified to profit or loss |
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Remeasurements of defined benefits pension plans incl. asset ceiling |
398 | -3,502 | -1,766 | |||||||||
Tax on items that will not be reclassified to profit or loss |
-169 | 953 | 520 | |||||||||
Items that may be reclassified to profit or loss |
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Available-for-sale financial assets |
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Gains/losses arising during the period |
32 | | -7 | |||||||||
Reclassification adjustments on gains/losses included in profit or loss |
3 | | | |||||||||
Revaluation of other investments in shares and participations |
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Fair value remeasurement |
2 | -4 | -2 | |||||||||
Changes in cumulative translation adjustments |
-21 | -1,133 | 4,235 | |||||||||
Share of other comprehensive income on JV and associated companies |
10 | -376 | -362 | |||||||||
Tax on items that may be reclassified to profit or loss |
-9 | | 1 | |||||||||
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|
|
|
|
|||||||
Total other comprehensive income, net of tax |
246 | -4,062 | 2,619 | |||||||||
|
|
|
|
|
|
|||||||
Total comprehensive income |
-10,609 | -1,956 | 4,514 | |||||||||
|
|
|
|
|
|
|||||||
Total comprehensive income attributable to: |
||||||||||||
Stockholders of the Parent Company |
-10,674 | -2,093 | 4,285 | |||||||||
Non-controlling interest |
65 | 137 | 229 |
17 Ericsson | First Quarter Report 2017
SEK million |
Mar 31 2017 |
Dec 31 2016 |
||||||
ASSETS |
||||||||
Non-current assets |
||||||||
Intangible assets |
||||||||
Capitalized development expenses |
6,460 | 8,076 | ||||||
Goodwill |
43,042 | 43,387 | ||||||
Intellectual property rights, brands and other intangible assets |
5,869 | 7,747 | ||||||
Property, plant and equipment |
16,645 | 16,734 | ||||||
Financial assets |
||||||||
Equity in JV and associated companies |
792 | 775 | ||||||
Other investments in shares and participations |
1,112 | 1,179 | ||||||
Customer finance, non-current |
2,728 | 2,128 | ||||||
Interest-bearing securities, non-current |
19,124 | 7,586 | ||||||
Other financial assets, non-current |
4,466 | 4,442 | ||||||
Deferred tax assets |
17,435 | 15,522 | ||||||
|
|
|
|
|||||
117,673 | 107,576 | |||||||
Current assets |
||||||||
Inventories |
33,938 | 30,307 | ||||||
Trade receivables |
65,687 | 68,117 | ||||||
Customer finance, current |
2,882 | 2,625 | ||||||
Other current receivables |
25,525 | 24,431 | ||||||
Interest-bearing securities, current |
13,548 | 13,325 | ||||||
Cash and cash equivalents |
32,954 | 36,966 | ||||||
|
|
|
|
|||||
174,534 | 175,771 | |||||||
|
|
|
|
|||||
Total assets |
292,207 | 283,347 | ||||||
|
|
|
|
|||||
EQUITY AND LIABILITIES |
||||||||
Equity |
||||||||
Stockholders equity |
126,105 | 139,817 | ||||||
Non-controlling interest in equity of subsidiaries |
736 | 675 | ||||||
|
|
|
|
|||||
126,841 | 140,492 | |||||||
Non-current liabilities |
||||||||
Post-employment benefits |
23,774 | 23,723 | ||||||
Provisions, non-current |
4,867 | 946 | ||||||
Deferred tax liabilities |
1,888 | 2,147 | ||||||
Borrowings, non-current |
27,823 | 18,653 | ||||||
Other non-current liabilities |
2,699 | 2,621 | ||||||
|
|
|
|
|||||
61,051 | 48,090 | |||||||
Current liabilities |
||||||||
Provisions, current |
5,694 | 5,411 | ||||||
Borrowings, current |
9,514 | 8,033 | ||||||
Trade payables |
25,814 | 25,318 | ||||||
Other current liabilities |
63,293 | 56,003 | ||||||
|
|
|
|
|||||
104,315 | 94,765 | |||||||
|
|
|
|
|||||
Total equity and liabilities |
292,207 | 283,347 | ||||||
|
|
|
|
|||||
Of which interest-bearing liabilities |
37,337 | 26,686 | ||||||
Assets pledged as collateral |
3,064 | 2,584 | ||||||
Contingent liabilities |
1,729 | 1,186 |
18 Ericsson | First Quarter Report 2017
CONSOLIDATED STATEMENT OF CASH FLOWS
JanMar | JanDec | |||||||||||
SEK million |
2017 | 2016 | 2016 | |||||||||
Operating activities |
||||||||||||
Net income |
10,855 | 2,106 | 1,895 | |||||||||
Adjustments to reconcile net income to cash |
||||||||||||
Taxes |
4,345 | 1,208 | 6,200 | |||||||||
Earnings/dividends in JV and associated companies |
7 | 16 | 58 | |||||||||
Depreciation, amortization and impairment losses |
5,431 | 2,097 | 9,119 | |||||||||
Other |
527 | 652 | 3,135 | |||||||||
|
|
|
|
|
|
|||||||
Net income reconciled to cash |
9,249 | 3,631 | 8,007 | |||||||||
Changes in operating net assets |
||||||||||||
Inventories |
3,585 | 4,212 | 613 | |||||||||
Customer finance, current and non-current |
834 | 251 | 950 | |||||||||
Trade receivables |
2,397 | 3,408 | 5,933 | |||||||||
Trade payables |
626 | 617 | 2,775 | |||||||||
Provisions and post-employment benefits |
4,645 | 14 | 3,106 | |||||||||
Other operating assets and liabilities, net |
4,459 | 4,317 | 4,248 | |||||||||
|
|
|
|
|
|
|||||||
7,708 | 6,003 | 6,003 | ||||||||||
Cash flow from operating activities |
1,541 | 2,372 | 14,010 | |||||||||
Investing activities |
||||||||||||
Investments in property, plant and equipment |
1,015 | 1,474 | 6,129 | |||||||||
Sales of property, plant and equipment |
69 | 44 | 482 | |||||||||
Acquisitions/divestments of subsidiaries and other operations, net |
3 | 108 | 622 | |||||||||
Product development |
865 | 1,208 | 4,483 | |||||||||
Other investing activities |
110 | 735 | 3,004 | |||||||||
Interest-bearing securities |
11,886 | 1,013 | 5,473 | |||||||||
|
|
|
|
|
|
|||||||
Cash flow from investing activities |
13,584 | 998 | 8,283 | |||||||||
Cash flow before financing activities |
15,125 | 3,370 | 5,727 | |||||||||
Financing activities |
||||||||||||
Dividends paid |
4 | 33 | 12,263 | |||||||||
Other financing activities |
10,902 | 94 | 521 | |||||||||
|
|
|
|
|
|
|||||||
Cash flow from financing activities |
10,898 | 61 | 11,742 | |||||||||
Effect of exchange rate changes on cash |
215 | 981 | 2,757 | |||||||||
|
|
|
|
|
|
|||||||
Net change in cash and cash equivalents |
4,012 | 4,290 | 3,258 | |||||||||
|
|
|
|
|
|
|||||||
Cash and cash equivalents, beginning of period |
36,966 | 40,224 | 40,224 | |||||||||
|
|
|
|
|
|
|||||||
Cash and cash equivalents, end of period |
32,954 | 35,934 | 36,966 | |||||||||
|
|
|
|
|
|
19 Ericsson | First Quarter Report 2017
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
JanMar | JanDec | |||||||||||
SEK million |
2017 | 2016 | 2016 | |||||||||
Opening balance |
140,492 | 147,366 | 147,366 | |||||||||
Total comprehensive income |
10,609 | 1,956 | 4,514 | |||||||||
Sale/repurchase of own shares |
25 | 29 | 216 | |||||||||
Stock issue (net) |
| | 131 | |||||||||
Stock purchase plan |
210 | 238 | 957 | |||||||||
Dividends paid |
3,277 | 1) | 33 | 12,263 | ||||||||
Transactions with non-controlling interests |
| | 3 | |||||||||
|
|
|
|
|
|
|||||||
Closing balance |
126,841 | 145,644 | 140,492 | |||||||||
|
|
|
|
|
|
1) | Includes accrual of SEK 3,273 million for the dividend approved by the Annual General Meeting on March 29, 2017. |
CONSOLIDATED INCOME STATEMENT - ISOLATED QUARTERS
2017 | 2016 | |||||||||||||||||||
Isolated quarters, SEK million |
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
Net sales |
46,369 | 65,215 | 51,076 | 54,108 | 52,209 | |||||||||||||||
Cost of sales |
39,931 | 48,195 | 36,616 | 36,613 | 34,819 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Gross income |
6,438 | 17,020 | 14,460 | 17,495 | 17,390 | |||||||||||||||
Gross margin (%) |
13.9 | % | 26.1 | % | 28.3 | % | 32.3 | % | 33.3 | % | ||||||||||
Research and development expenses |
9,068 | 8,890 | 7,855 | 7,405 | 7,485 | |||||||||||||||
Selling and administrative expenses |
9,861 | 8,799 | 6,238 | 7,109 | 6,720 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Operating expenses |
18,929 | 17,689 | 14,093 | 14,514 | 14,205 | |||||||||||||||
Other operating income and expenses |
141 | 364 | 3 | 230 | 273 | |||||||||||||||
Shares in earnings of JV and associated companies |
11 | 25 | 23 | 12 | 17 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Operating income |
12,339 | 280 | 341 | 2,763 | 3,475 | |||||||||||||||
Financial income |
82 | 61 | 226 | 139 | 89 | |||||||||||||||
Financial expenses |
350 | 744 | 371 | 666 | 377 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income after financial items |
12,771 | 963 | 256 | 2,236 | 3,009 | |||||||||||||||
Taxes |
1,916 | 634 | 76 | 670 | 903 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income |
10,855 | 1,597 | 180 | 1,566 | 2,106 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income attributable to: |
||||||||||||||||||||
Stockholders of the Parent Company |
10,897 | 1,604 | 233 | 1,587 | 1,966 | |||||||||||||||
Non-controlling interests |
42 | 7 | 53 | 21 | 140 | |||||||||||||||
Other information |
||||||||||||||||||||
Average number of shares, basic (million) |
3,272 | 3,268 | 3,264 | 3,261 | 3,258 | |||||||||||||||
Earnings per share, basic (SEK) 1) |
3.33 | 0.49 | 0.07 | 0.49 | 0.60 | |||||||||||||||
Earnings per share, diluted (SEK) 1) |
3.29 | 0.48 | 0.07 | 0.48 | 0.60 |
1) | Based on Net income attributable to stockholders of the Parent Company. |
20 Ericsson | First Quarter Report 2017
CONSOLIDATED STATEMENT OF CASH FLOWS ISOLATED QUARTERS
2017 | 2016 | |||||||||||||||||||
Isolated quarters, SEK million |
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
Operating activities |
||||||||||||||||||||
Net income |
10,855 | 1,597 | 180 | 1,566 | 2,106 | |||||||||||||||
Adjustments to reconcile net income to cash |
||||||||||||||||||||
Taxes |
4,345 | 300 | 1,282 | 3,410 | 1,208 | |||||||||||||||
Earnings/dividends in JV and associated companies |
7 | 21 | 22 | 73 | 16 | |||||||||||||||
Depreciation, amortization and impairment losses |
5,431 | 2,610 | 2,308 | 2,104 | 2,097 | |||||||||||||||
Other |
527 | 865 | 630 | 988 | 652 | |||||||||||||||
Net income reconciled to cash |
9,249 | 1,557 | 1,498 | 1,321 | 3,631 | |||||||||||||||
Changes in operating net assets |
||||||||||||||||||||
Inventories |
3,585 | 4,286 | 980 | 1,667 | 4,212 | |||||||||||||||
Customer finance, current and non-current |
834 | 106 | 223 | 816 | 251 | |||||||||||||||
Trade receivables |
2,397 | 3,713 | 624 | 564 | 3,408 | |||||||||||||||
Trade payables |
626 | 3,306 | 2,371 | 2,457 | 617 | |||||||||||||||
Provisions and post-employment benefits |
4,645 | 2,772 | 130 | 218 | 14 | |||||||||||||||
Other operating assets and liabilities, net |
4,459 | 3,884 | 2,153 | 1,662 | 4,317 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
7,708 | 17,855 | 3,815 | 2,034 | 6,003 | ||||||||||||||||
Cash flow from operating activities |
1,541 | 19,412 | 2,317 | 713 | 2,372 | |||||||||||||||
Investing activities |
||||||||||||||||||||
Investments in property, plant and equipment |
1,015 | 1,699 | 1,384 | 1,572 | 1,474 | |||||||||||||||
Sales of property, plant and equipment |
69 | 277 | 111 | 50 | 44 | |||||||||||||||
Acquisitions/divestments of subsidiaries and other operations, net |
3 | 50 | 16 | 480 | 108 | |||||||||||||||
Product development |
865 | 1,291 | 885 | 1,099 | 1,208 | |||||||||||||||
Other investing activities |
110 | 2,341 | 508 | 890 | 735 | |||||||||||||||
Interest-bearing securities |
11,886 | 1,505 | 610 | 5,355 | 1,013 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Cash flow from investing activities |
13,584 | 6,609 | 2,040 | 1,364 | 998 | |||||||||||||||
Cash flow before financing activities |
15,125 | 12,803 | 4,357 | 651 | 3,370 | |||||||||||||||
Financing activities |
||||||||||||||||||||
Dividends paid |
4 | | 163 | 12,067 | 33 | |||||||||||||||
Other financing activities |
10,902 | 1,039 | 1,295 | 2,761 | 94 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Cash flow from financing activities |
10,898 | 1,039 | 1,458 | 9,306 | 61 | |||||||||||||||
Effect of exchange rate changes on cash |
215 | 801 | 1,285 | 1,652 | 981 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net change in cash and cash equivalents |
4,012 | 12,565 | 4,530 | 7,003 | 4,290 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Cash and cash equivalents, beginning of period |
36,966 | 24,401 | 28,931 | 35,934 | 40,224 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Cash and cash equivalents, end of period |
32,954 | 36,966 | 24,401 | 28,931 | 35,934 |
21 Ericsson | First Quarter Report 2017
PARENT COMPANY INCOME STATEMENT
Jan-Mar | Jan-Dec | |||||||||||
SEK million |
2017 | 2016 | 2016 | |||||||||
Net sales |
| | | |||||||||
Cost of sales |
| | | |||||||||
|
|
|
|
|
|
|||||||
Gross income |
| | | |||||||||
Operating expenses |
289 | 223 | 1,185 | |||||||||
Other operating income and expenses |
572 | 574 | 2,698 | |||||||||
|
|
|
|
|
|
|||||||
Operating income |
283 | 351 | 1,513 | |||||||||
Financial net |
331 | 11 | 14,039 | |||||||||
|
|
|
|
|
|
|||||||
Income after financial items |
48 | 362 | 15,552 | |||||||||
Transfers to () / from untaxed reserves |
| | 1,100 | |||||||||
Taxes |
10 | 45 | 206 | |||||||||
|
|
|
|
|
|
|||||||
Net income |
58 | 317 | 14,246 | |||||||||
|
|
|
|
|
|
PARENT COMPANY STATEMENT OF COMPREHENSIVE INCOME
Jan-Mar | Jan-Dec | |||||||||||
SEK million |
2017 | 2016 | 2016 | |||||||||
Net income |
58 | 317 | 14,246 | |||||||||
Available-for-sale financial assets |
||||||||||||
Gains/losses arising during the period |
32 | | 7 | |||||||||
Reclassification adjustments on gains/losses included in profit or loss |
3 | | | |||||||||
Revaluation of other investments in shares and participations |
||||||||||||
Fair value remeasurement |
| 5 | 5 | |||||||||
Tax on items that may be reclassified to profit or loss |
8 | | | |||||||||
|
|
|
|
|
|
|||||||
Total other comprehensive income, net of tax |
27 | 5 | 12 | |||||||||
|
|
|
|
|
|
|||||||
Total comprehensive income |
31 | 312 | 14,234 | |||||||||
|
|
|
|
|
|
22 Ericsson | First Quarter Report 2017
SEK million |
Mar 31 2017 |
Dec 31 2016 |
||||||
ASSETS |
||||||||
Fixed assets |
||||||||
Intangible assets |
487 | 547 | ||||||
Tangible assets |
414 | 396 | ||||||
Financial assets* |
123,786 | 111,981 | ||||||
|
|
|
|
|||||
124,687 | 112,924 | |||||||
Current assets |
||||||||
Inventories |
2 | 3 | ||||||
Receivables |
28,527 | 38,476 | ||||||
Short-term investments |
13,209 | 12,991 | ||||||
Cash and cash equivalents |
18,984 | 22,311 | ||||||
|
|
|
|
|||||
60,722 | 73,781 | |||||||
|
|
|
|
|||||
Total assets |
185,409 | 186,705 | ||||||
|
|
|
|
|||||
STOCKHOLDERS EQUITY, PROVISIONS AND LIABILITIES |
||||||||
Equity |
||||||||
Restricted equity |
48,148 | 48,148 | ||||||
Non-restricted equity |
41,461 | 44,753 | ||||||
|
|
|
|
|||||
89,609 | 92,901 | |||||||
Provisions |
677 | 885 | ||||||
Non-current liabilities |
59,691 | 50,428 | ||||||
Current liabilities |
35,432 | 42,491 | ||||||
|
|
|
|
|||||
Total stockholders equity, provisions and liabilities |
185,409 | 186,705 | ||||||
|
|
|
|
|||||
* Of which interest-bearing securities, non-current |
19,124 | 7,586 |
23 Ericsson | First Quarter Report 2017
ADDITIONAL INFORMATION
THE GROUP
24 Ericsson | First Quarter Report 2017
NET SALES BY SEGMENT BY QUARTER*
2017 | 2016 | |||||||||||||||||||
Isolated quarters, SEK million |
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
Networks |
34,860 | 47,791 | 37,020 | 40,245 | 39,935 | |||||||||||||||
Of which products |
19,410 | 27,519 | 19,249 | 23,037 | 22,795 | |||||||||||||||
Of which services |
15,450 | 20,272 | 17,771 | 17,208 | 17,140 | |||||||||||||||
IT & Cloud |
9,545 | 14,884 | 11,716 | 11,500 | 9,830 | |||||||||||||||
Of which products |
4,103 | 6,682 | 5,479 | 5,298 | 4,773 | |||||||||||||||
Of which services |
5,442 | 8,202 | 6,237 | 6,202 | 5,057 | |||||||||||||||
Media |
1,964 | 2,540 | 2,340 | 2,363 | 2,444 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
46,369 | 65,215 | 51,076 | 54,108 | 52,209 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
2017 | 2016 | |||||||||||||||||||
Sequential change, percent |
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
Networks |
27 | % | 29 | % | 8 | % | 1 | % | | |||||||||||
Of which products |
29 | % | 43 | % | 16 | % | 1 | % | | |||||||||||
Of which services |
24 | % | 14 | % | 3 | % | 0 | % | | |||||||||||
IT & Cloud |
36 | % | 27 | % | 2 | % | 17 | % | | |||||||||||
Of which products |
39 | % | 22 | % | 3 | % | 11 | % | | |||||||||||
Of which services |
34 | % | 32 | % | 1 | % | 23 | % | | |||||||||||
Media |
23 | % | 9 | % | 1 | % | 3 | % | | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
29 | % | 28 | % | 6 | % | 4 | % | 29 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
2017 | 2016 | |||||||||||||||||||
Year over year change, percent |
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
Networks |
13 | % | | | | | ||||||||||||||
Of which products |
15 | % | | | | | ||||||||||||||
Of which services |
10 | % | | | | | ||||||||||||||
IT & Cloud |
3 | % | | | | | ||||||||||||||
Of which products |
14 | % | | | | | ||||||||||||||
Of which services |
8 | % | | | | | ||||||||||||||
Media |
20 | % | | | | | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
11 | % | 11 | % | 14 | % | 11 | % | 2 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
2017 | 2016 | |||||||||||||||||||
Year to date, SEK million |
Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||
Networks |
34,860 | 164,991 | 117,200 | 80,180 | 39,935 | |||||||||||||||
Of which products |
19,410 | 92,600 | 65,081 | 45,832 | 22,795 | |||||||||||||||
Of which services |
15,450 | 72,391 | 52,119 | 34,348 | 17,140 | |||||||||||||||
IT & Cloud |
9,545 | 47,930 | 33,046 | 21,330 | 9,830 | |||||||||||||||
Of which products |
4,103 | 22,232 | 15,550 | 10,071 | 4,773 | |||||||||||||||
Of which services |
5,442 | 25,698 | 17,496 | 11,259 | 5,057 | |||||||||||||||
Media |
1,964 | 9,687 | 7,147 | 4,807 | 2,444 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
46,369 | 222,608 | 157,393 | 106,317 | 52,209 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
2017 | 2016 | |||||||||||||||||||
Year to date, year over year change, percent |
JanMar | JanDec | JanSep | JanJun | JanMar | |||||||||||||||
Networks |
13 | % | 11 | % | | | | |||||||||||||
Of which products |
15 | % | 12 | % | | | | |||||||||||||
Of which services |
10 | % | 8 | % | | | | |||||||||||||
IT & Cloud |
3 | % | 7 | % | | | | |||||||||||||
Of which products |
14 | % | 16 | % | | | | |||||||||||||
Of which services |
8 | % | 1 | % | | | | |||||||||||||
Media |
20 | % | 7 | % | | | | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
11 | % | 10 | % | 9 | % | 7 | % | 2 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
* | Net sales by segment has been restated for each quarter of 2016 and for the full year 2015. Comparisons against isolated quarters in 2015 are not available by segment. |
25 Ericsson | First Quarter Report 2017
SALES GROWTH ADJUSTED FOR COMPARABLE UNITS AND CURRENCY*
2017 | 2016 | |||||||||||||||||||
Sequential change, percent |
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
Networks |
27 | % | | | | | ||||||||||||||
IT & Cloud |
35 | % | | | | | ||||||||||||||
Media |
23 | % | | | | | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
29 | % | 23 | % | 9 | % | 6 | % | 28 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
2017 | 2016 | |||||||||||||||||||
Isolated quarter, year over year change, percent |
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
Networks |
18 | % | | | | | ||||||||||||||
IT & Cloud |
7 | % | | | | | ||||||||||||||
Media |
22 | % | | | | | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
16 | % | 15 | % | 14 | % | 7 | % | 1 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
2017 | 2016 | |||||||||||||||||||
Year to date, year over year change, percent |
Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||
Networks |
18 | % | | | | | ||||||||||||||
IT & Cloud |
7 | % | | | | | ||||||||||||||
Media |
22 | % | | | | | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
16 | % | 10 | % | 8 | % | 4 | % | 1 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
* | Sales growth adjusted for comparable units and currency has not been restated by segment for 2016. |
GROSS INCOME AND GROSS MARGIN BY SEGMENT BY QUARTER
2017 | 2016 | |||||||||||||||||||
Isolated quarters, SEK million |
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
Networks |
7,980 | 11,783 | 9,867 | 12,522 | 13,011 | |||||||||||||||
IT & Cloud |
2,100 | 4,676 | 3,833 | 4,061 | 3,281 | |||||||||||||||
Media |
558 | 561 | 760 | 912 | 1,098 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
6,438 | 17,020 | 14,460 | 17,495 | 17,390 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
2017 | 2016 | |||||||||||||||||||
Isolated quarters, As percentage of net sales |
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
Networks |
23 | % | 25 | % | 27 | % | 31 | % | 33 | % | ||||||||||
IT & Cloud |
22 | % | 31 | % | 33 | % | 35 | % | 33 | % | ||||||||||
Media |
28 | % | 22 | % | 32 | % | 39 | % | 45 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
14 | % | 26 | % | 28 | % | 32 | % | 33 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
2017 | 2016 | |||||||||||||||||||
Year to date, SEK million |
Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||
Networks |
7,980 | 47,183 | 35,400 | 25,533 | 13,011 | |||||||||||||||
IT & Cloud |
2,100 | 15,851 | 11,175 | 7,342 | 3,281 | |||||||||||||||
Media |
558 | 3,331 | 2,770 | 2,010 | 1,098 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
6,438 | 66,365 | 49,345 | 34,885 | 17,390 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
2017 | 2016 | |||||||||||||||||||
Year to date, As percentage of net sales |
Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||
Networks |
23 | % | 29 | % | 30 | % | 32 | % | 33 | % | ||||||||||
IT & Cloud |
22 | % | 33 | % | 34 | % | 34 | % | 33 | % | ||||||||||
Media |
28 | % | 34 | % | 39 | % | 42 | % | 45 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
14 | % | 30 | % | 31 | % | 33 | % | 33 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
26 Ericsson | First Quarter Report 2017
OPERATING INCOME AND OPERATING MARGIN BY SEGMENT BY QUARTER
2017 | 2016 | |||||||||||||||||||
Isolated quarters, SEK million |
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
Networks |
538 | 2,380 | 2,839 | 4,789 | 5,762 | |||||||||||||||
IT & Cloud |
8,997 | 1,819 | 1,740 | 1,546 | 1,977 | |||||||||||||||
Media |
2,804 | 841 | 758 | 480 | 310 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
12,339 | 280 | 341 | 2,763 | 3,475 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
2017 | 2016 | |||||||||||||||||||
Isolated quarters, As percentage of net sales |
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
Networks |
2 | % | 5 | % | 8 | % | 12 | % | 14 | % | ||||||||||
IT & Cloud |
94 | % | 12 | % | 15 | % | 13 | % | 20 | % | ||||||||||
Media |
143 | % | 33 | % | 32 | % | 20 | % | 13 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
27 | % | 0 | % | 1 | % | 5 | % | 7 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
2017 | 2016 | |||||||||||||||||||
Year to date, SEK million |
Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||
Networks |
538 | 15,770 | 13,390 | 10,551 | 5,762 | |||||||||||||||
IT & Cloud |
8,997 | 7,082 | 5,263 | 3,523 | 1,977 | |||||||||||||||
Media |
2,804 | 2,389 | 1,548 | 790 | 310 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
12,339 | 6,299 | 6,579 | 6,238 | 3,475 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
2017 | 2016 | |||||||||||||||||||
Year to date As percentage of net sales |
JanMar | JanDec | JanSep | JanJun | JanMar | |||||||||||||||
Networks |
2 | % | 10 | % | 11 | % | 13 | % | 14 | % | ||||||||||
IT & Cloud |
94 | % | 15 | % | 16 | % | 17 | % | 20 | % | ||||||||||
Media |
143 | % | 25 | % | 22 | % | 16 | % | 13 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
27 | % | 3 | % | 4 | % | 6 | % | 7 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
EBITA AND EBITA MARGIN BY SEGMENT BY QUARTER
2017 | 2016 | |||||||||||||||||||
Isolated quarters, SEK million |
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
Networks |
353 | 2,586 | 3,042 | 4,994 | 5,970 | |||||||||||||||
IT & Cloud |
8,237 | 1,571 | 1,443 | 1,306 | 1,713 | |||||||||||||||
Media |
1,874 | 655 | 567 | 290 | 98 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
10,464 | 360 | 1,032 | 3,398 | 4,159 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
2017 | 2016 | |||||||||||||||||||
Isolated quarters As percentage of net sales |
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
Networks |
1 | % | 5 | % | 8 | % | 12 | % | 15 | % | ||||||||||
IT & Cloud |
86 | % | 11 | % | 12 | % | 11 | % | 17 | % | ||||||||||
Media |
95 | % | 26 | % | 24 | % | 12 | % | 4 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
23 | % | 1 | % | 2 | % | 6 | % | 8 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
2017 | 2016 | |||||||||||||||||||
Year to date, SEK million |
Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||
Networks |
353 | 16,592 | 14,006 | 10,964 | 5,970 | |||||||||||||||
IT & Cloud |
8,237 | 6,033 | 4,462 | 3,019 | 1,713 | |||||||||||||||
Media |
1,874 | 1,610 | 955 | 388 | 98 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
10,464 | 8,949 | 8,589 | 7,557 | 4,159 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
2017 | 2016 | |||||||||||||||||||
Year to date As a percentage of net sales |
JanMar | JanDec | JanSep | JanJun | JanMar | |||||||||||||||
Networks |
1 | % | 10 | % | 12 | % | 14 | % | 15 | % | ||||||||||
IT & Cloud |
86 | % | 13 | % | 14 | % | 14 | % | 17 | % | ||||||||||
Media |
95 | % | 17 | % | 13 | % | 8 | % | 4 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
23 | % | 4 | % | 5 | % | 7 | % | 8 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
27 Ericsson | First Quarter Report 2017
NET SALES BY REGION BY QUARTER*
2017 | 2016 | |||||||||||||||||||
Isolated quarters, SEK million |
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
North America |
11,811 | 14,851 | 13,178 | 13,358 | 13,147 | |||||||||||||||
Latin America |
2,887 | 4,974 | 4,383 | 4,550 | 4,047 | |||||||||||||||
Northern Europe & Central Asia 1) 2) |
1,735 | 2,781 | 2,105 | 2,158 | 2,286 | |||||||||||||||
Western & Central Europe 2) |
3,645 | 4,588 | 3,949 | 4,828 | 4,373 | |||||||||||||||
Mediterranean 2) |
4,440 | 6,785 | 4,667 | 5,546 | 4,394 | |||||||||||||||
Middle East |
3,487 | 6,397 | 4,286 | 4,926 | 3,579 | |||||||||||||||
Sub Saharan Africa |
1,927 | 2,732 | 2,012 | 2,313 | 2,120 | |||||||||||||||
India |
2,422 | 3,042 | 2,597 | 2,426 | 2,683 | |||||||||||||||
North East Asia |
5,561 | 9,623 | 6,122 | 6,041 | 5,579 | |||||||||||||||
South East Asia & Oceania |
5,587 | 6,676 | 5,081 | 5,304 | 5,222 | |||||||||||||||
Other 1) 2) |
2,867 | 2,766 | 2,696 | 2,658 | 4,779 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
46,369 | 65,215 | 51,076 | 54,108 | 52,209 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
1) Of which in Sweden |
925 | 843 | 690 | 477 | 1,113 | |||||||||||||||
2) Of which in EU |
8,239 | 11,154 | 8,507 | 9,635 | 9,229 | |||||||||||||||
2017 | 2016 | |||||||||||||||||||
Sequential change, percent |
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
North America |
20 | % | 13 | % | 1 | % | 2 | % | 21 | % | ||||||||||
Latin America |
42 | % | 13 | % | 4 | % | 12 | % | 34 | % | ||||||||||
Northern Europe & Central Asia 1) 2) |
38 | % | 32 | % | 2 | % | 6 | % | 22 | % | ||||||||||
Western & Central Europe 2) |
21 | % | 16 | % | 18 | % | 10 | % | 25 | % | ||||||||||
Mediterranean 2) |
35 | % | 45 | % | 16 | % | 26 | % | 38 | % | ||||||||||
Middle East |
45 | % | 49 | % | 13 | % | 38 | % | 41 | % | ||||||||||
Sub Saharan Africa |
29 | % | 36 | % | 13 | % | 9 | % | 26 | % | ||||||||||
India |
20 | % | 17 | % | 7 | % | 10 | % | 15 | % | ||||||||||
North East Asia |
42 | % | 57 | % | 1 | % | 8 | % | 37 | % | ||||||||||
South East Asia & Oceania |
16 | % | 31 | % | 4 | % | 2 | % | 3 | % | ||||||||||
Other 1) 2) |
4 | % | 3 | % | 1 | % | 44 | % | 44 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
29 | % | 28 | % | 6 | % | 4 | % | 29 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
1) Of which in Sweden |
10 | % | 22 | % | 45 | % | 57 | % | 15 | % | ||||||||||
2) Of which in EU |
26 | % | 31 | % | 12 | % | 4 | % | 27 | % | ||||||||||
2017 | 2016 | |||||||||||||||||||
Year-over-year change, percent |
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
North America |
10 | % | 11 | % | 8 | % | 8 | % | 8 | % | ||||||||||
Latin America |
29 | % | 19 | % | 22 | % | 10 | % | 12 | % | ||||||||||
Northern Europe & Central Asia 1) 2) |
24 | % | 5 | % | 19 | % | 18 | % | 18 | % | ||||||||||
Western & Central Europe 2) |
17 | % | 21 | % | 21 | % | 15 | % | 17 | % | ||||||||||
Mediterranean 2) |
1 | % | 4 | % | 17 | % | 7 | % | 14 | % | ||||||||||
Middle East |
3 | % | 5 | % | 25 | % | 24 | % | 21 | % | ||||||||||
Sub Saharan Africa |
9 | % | 4 | % | 25 | % | 13 | % | 2 | % | ||||||||||
India |
10 | % | 4 | % | 28 | % | 20 | % | 24 | % | ||||||||||
North East Asia |
0 | % | 8 | % | 4 | % | 13 | % | 7 | % | ||||||||||
South East Asia & Oceania |
7 | % | 25 | % | 5 | % | 8 | % | 23 | % | ||||||||||
Other 1) 2) |
40 | % | 67 | % | 6 | % | 3 | % | 54 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
11 | % | 11 | % | 14 | % | 11 | % | 2 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
1) Of which in Sweden |
17 | % | 13 | % | 39 | % | 20 | % | 2 | % | ||||||||||
2) Of which in EU |
11 | % | 12 | % | 20 | % | 16 | % | 15 | % |
* | Net sales by region has been restated. Broadcast services, previously reported in Region Other, is now reported per geographical region. In addition, part of the business related to former Telcordia has been transferred from the geographic regions to Region Other. |
28 Ericsson | First Quarter Report 2017
NET SALES BY REGION BY QUARTER, CONT.*
2017 | 2016 | |||||||||||||||||||
Year to date, SEK million |
Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||
North America |
11,811 | 54,534 | 39,683 | 26,505 | 13,147 | |||||||||||||||
Latin America |
2,887 | 17,954 | 12,980 | 8,597 | 4,047 | |||||||||||||||
Northern Europe & Central Asia 1) 2) |
1,735 | 9,330 | 6,549 | 4,444 | 2,286 | |||||||||||||||
Western & Central Europe 2) |
3,645 | 17,738 | 13,150 | 9,201 | 4,373 | |||||||||||||||
Mediterranean 2) |
4,440 | 21,392 | 14,607 | 9,940 | 4,394 | |||||||||||||||
Middle East |
3,487 | 19,188 | 12,791 | 8,505 | 3,579 | |||||||||||||||
Sub Saharan Africa |
1,927 | 9,177 | 6,445 | 4,433 | 2,120 | |||||||||||||||
India |
2,422 | 10,748 | 7,706 | 5,109 | 2,683 | |||||||||||||||
North East Asia |
5,561 | 27,365 | 17,742 | 11,620 | 5,579 | |||||||||||||||
South East Asia & Oceania |
5,587 | 22,283 | 15,607 | 10,526 | 5,222 | |||||||||||||||
Other 1) 2) |
2,867 | 12,899 | 10,133 | 7,437 | 4,779 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
46,369 | 222,608 | 157,393 | 106,317 | 52,209 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
1) Of which in Sweden |
925 | 3,123 | 2,280 | 1,590 | 1,113 | |||||||||||||||
2) Of which in EU |
8,239 | 38,525 | 27,371 | 18,864 | 9,229 | |||||||||||||||
2017 | 2016 | |||||||||||||||||||
Year to date, year-over-year change, percent |
Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||
North America |
10 | % | 6 | % | 3 | % | 1 | % | 8 | % | ||||||||||
Latin America |
29 | % | 16 | % | 15 | % | 11 | % | 12 | % | ||||||||||
Northern Europe & Central Asia 1) 2) |
24 | % | 15 | % | 18 | % | 18 | % | 18 | % | ||||||||||
Western & Central Europe 2) |
17 | % | 18 | % | 17 | % | 16 | % | 17 | % | ||||||||||
Mediterranean 2) |
1 | % | 10 | % | 12 | % | 10 | % | 14 | % | ||||||||||
Middle East |
3 | % | 16 | % | 24 | % | 23 | % | 21 | % | ||||||||||
Sub Saharan Africa |
9 | % | 11 | % | 14 | % | 8 | % | 2 | % | ||||||||||
India |
10 | % | 20 | % | 25 | % | 22 | % | 24 | % | ||||||||||
North East Asia |
0 | % | 3 | % | 8 | % | 10 | % | 7 | % | ||||||||||
South East Asia & Oceania |
7 | % | 15 | % | 12 | % | 15 | % | 23 | % | ||||||||||
Other 1) 2) |
40 | % | 25 | % | 16 | % | 27 | % | 54 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
11 | % | 10 | % | 9 | % | 7 | % | 2 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
1) Of which in Sweden |
17 | % | 18 | % | 19 | % | 6 | % | 2 | % | ||||||||||
2) Of which in EU |
11 | % | 15 | % | 17 | % | 16 | % | 15 | % |
* | Net sales by region has been restated. Broadcast services, previously reported in Region Other, is now reported per geographical region. In addition, part of the business related to former Telcordia has been transferred from the geographic regions to Region Other. |
Q1 | Jan-Dec | |||||||||||
Country Percentage of Net sales |
2017 | 2016 | 2016 | |||||||||
United States |
26 | % | 27 | % | 25 | % | ||||||
China |
7 | % | 9 | % | 9 | % | ||||||
India |
5 | % | 5 | % | 5 | % | ||||||
Japan |
5 | % | 4 | % | 3 | % | ||||||
Vietnam |
4 | % | 1 | % | 1 | % |
29 Ericsson | First Quarter Report 2017
NET SALES BY REGION BY SEGMENT
Q1 2017 | ||||||||||||||||
SEK million |
Networks | IT & Cloud | Media | Total | ||||||||||||
North America |
9,229 | 2,287 | 295 | 11,811 | ||||||||||||
Latin America |
2,015 | 845 | 27 | 2,887 | ||||||||||||
Northern Europe & Central Asia |
1,208 | 424 | 103 | 1,735 | ||||||||||||
Western & Central Europe |
2,519 | 690 | 436 | 3,645 | ||||||||||||
Mediterranean |
2,844 | 1,367 | 229 | 4,440 | ||||||||||||
Middle East |
2,397 | 1,015 | 75 | 3,487 | ||||||||||||
Sub Saharan Africa |
1,354 | 538 | 35 | 1,927 | ||||||||||||
India |
1,825 | 586 | 11 | 2,422 | ||||||||||||
North East Asia |
4,625 | 889 | 47 | 5,561 | ||||||||||||
South East Asia & Oceania |
4,828 | 692 | 67 | 5,587 | ||||||||||||
Other |
2,016 | 212 | 639 | 2,867 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
34,860 | 9,545 | 1,964 | 46,369 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Share of total |
75 | % | 21 | % | 4 | % | 100 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Q1 2017 | ||||||||||||||||
Sequential change, percent |
Networks | IT & Cloud | Media | Total | ||||||||||||
North America |
22 | % | 11 | % | 42 | % | 20 | % | ||||||||
Latin America |
43 | % | 35 | % | 79 | % | 42 | % | ||||||||
Northern Europe & Central Asia |
39 | % | 37 | % | 20 | % | 38 | % | ||||||||
Western & Central Europe |
8 | % | 47 | % | 21 | % | 21 | % | ||||||||
Mediterranean |
25 | % | 49 | % | 27 | % | 35 | % | ||||||||
Middle East |
47 | % | 42 | % | 15 | % | 45 | % | ||||||||
Sub Saharan Africa |
36 | % | 10 | % | 775 | % | 29 | % | ||||||||
India |
28 | % | 21 | % | 39 | % | 20 | % | ||||||||
North East Asia |
35 | % | 63 | % | 18 | % | 42 | % | ||||||||
South East Asia & Oceania |
15 | % | 21 | % | 29 | % | 16 | % | ||||||||
Other |
9 | % | 21 | % | 2 | % | 4 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
27 | % | 36 | % | 23 | % | 29 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Q1 2017 | ||||||||||||||||
Year over year change, percent |
Networks | IT & Cloud | Media | Total | ||||||||||||
North America |
15 | % | 32 | % | 44 | % | 10 | % | ||||||||
Latin America |
32 | % | 19 | % | 52 | % | 29 | % | ||||||||
Northern Europe & Central Asia |
31 | % | 4 | % | 18 | % | 24 | % | ||||||||
Western & Central Europe |
21 | % | 6 | % | 20 | % | 17 | % | ||||||||
Mediterranean |
4 | % | 6 | % | 8 | % | 1 | % | ||||||||
Middle East |
3 | % | 1 | % | 7 | % | 3 | % | ||||||||
Sub Saharan Africa |
8 | % | 16 | % | 150 | % | 9 | % | ||||||||
India |
15 | % | 17 | % | 52 | % | 10 | % | ||||||||
North East Asia |
8 | % | 30 | % | 4 | % | 0 | % | ||||||||
South East Asia & Oceania |
8 | % | 3 | % | 10 | % | 7 | % | ||||||||
Other |
44 | % | 52 | % | 15 | % | 40 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
13 | % | 3 | % | 20 | % | 11 | % | ||||||||
|
|
|
|
|
|
|
|
30 Ericsson | First Quarter Report 2017
2017 | 2016 | |||||||||||||||||||
Isolated quarters, SEK million |
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
Opening balance |
6,357 | 3,245 | 3,387 | 3,532 | 3,838 | |||||||||||||||
Additions |
6,365 | 4,349 | 666 | 839 | 492 | |||||||||||||||
Utilization/Cash out |
2,085 | 976 | 716 | 794 | 667 | |||||||||||||||
Of which restructuring |
1,586 | 785 | 529 | 639 | 487 | |||||||||||||||
Reversal of excess amounts |
66 | 253 | 129 | 240 | 67 | |||||||||||||||
Reclassification, translation difference and other |
11 | 8 | 37 | 50 | 64 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Closing balance |
10,560 | 6,357 | 3,245 | 3,387 | 3,532 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
2017 | 2016 | |||||||||||||||||||
Year to date, SEK million |
JanMar | JanDec | JanSep | JanJun | JanMar | |||||||||||||||
Opening balance |
6,357 | 3,838 | 3,838 | 3,838 | 3,838 | |||||||||||||||
Additions |
6,365 | 6,346 | 1,997 | 1,331 | 492 | |||||||||||||||
Utilization/Cash out |
2,085 | 3,153 | 2,177 | 1,461 | 667 | |||||||||||||||
Of which restructuring |
1,586 | 2,440 | 1,655 | 1,126 | 487 | |||||||||||||||
Reversal of excess amounts |
66 | 689 | 436 | 307 | 67 | |||||||||||||||
Reclassification, translation difference and other |
11 | 15 | 23 | 14 | 64 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Closing balance |
10,560 | 6,357 | 3,245 | 3,387 | 3,532 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Investments in assets subject to depreciation, amortization, impairment and writedowns
|
| |||||||||||||||||||
2017 | 2016 | |||||||||||||||||||
Isolated quarters, SEK million |
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
Additions |
||||||||||||||||||||
Property, plant and equipment |
1,015 | 1,699 | 1,384 | 1,572 | 1,474 | |||||||||||||||
Capitalized development expenses 1) |
865 | 1,291 | 885 | 1,099 | 1,208 | |||||||||||||||
IPR, brands and other intangible assets |
1 | 0 | 4 | 13 | 5 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
1,881 | 2,990 | 2,265 | 2,684 | 2,687 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Depreciation, amortization and impairment losses |
||||||||||||||||||||
Property, plant and equipment |
1,075 | 1,318 | 1,106 | 1,083 | 1,062 | |||||||||||||||
Capitalized development expenses |
2,481 | 652 | 511 | 386 | 351 | |||||||||||||||
IPR, brands and other intangible assets |
1,875 | 640 | 691 | 635 | 684 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
5,431 | 2,610 | 2,308 | 2,104 | 2,097 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
1) Including reclassification |
| |||||||||||||||||||
2017 | 2016 | |||||||||||||||||||
Year to date, SEK million |
JanMar | JanDec | JanSep | JanJun | JanMar | |||||||||||||||
Additions |
||||||||||||||||||||
Property, plant and equipment |
1,015 | 6,129 | 4,430 | 3,046 | 1,474 | |||||||||||||||
Capitalized development expenses 1) |
865 | 4,483 | 3,192 | 2,307 | 1,208 | |||||||||||||||
IPR, brands and other intangible assets |
1 | 14 | 14 | 18 | 5 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
1,881 | 10,626 | 7,636 | 5,371 | 2,687 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Depreciation, amortization and impairment losses |
||||||||||||||||||||
Property, plant and equipment |
1,075 | 4,569 | 3,251 | 2,145 | 1,062 | |||||||||||||||
Capitalized development expenses |
2,481 | 1,900 | 1,248 | 737 | 351 | |||||||||||||||
IPR, brands and other intangible assets |
1,875 | 2,650 | 2,010 | 1,319 | 684 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
5,431 | 9,119 | 6,509 | 4,201 | 2,097 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
1) | Including reclassification |
31 Ericsson | First Quarter Report 2017
JanMar | JanDec | |||||||||||
SEK million |
2017 | 2016 | 2016 | |||||||||
Number of shares and earnings per share |
||||||||||||
Number of shares, end of period (million) |
3,331 | 3,305 | 3,331 | |||||||||
Of which class A-shares (million) |
262 | 262 | 262 | |||||||||
Of which class B-shares (million) |
3,069 | 3,043 | 3,069 | |||||||||
Number of treasury shares, end of period (million) |
58 | 46 | 62 | |||||||||
Number of shares outstanding, basic, end of period (million) |
3,273 | 3,259 | 3,269 | |||||||||
Numbers of shares outstanding, diluted, end of period (million) |
3,314 | 3,293 | 3,309 | |||||||||
Average number of treasury shares (million) |
59 | 47 | 60 | |||||||||
Average number of shares outstanding, basic (million) |
3,272 | 3,258 | 3,263 | |||||||||
Average number of shares outstanding, diluted (million) 1) |
3,313 | 3,292 | 3,303 | |||||||||
Earnings per share, basic (SEK) |
3.33 | 0.60 | 0.53 | |||||||||
Earnings per share, diluted (SEK) 1) |
3.29 | 0.60 | 0.52 | |||||||||
Earnings per share (NonIFRS), diluted (SEK) 2) |
2.42 | 0.87 | 2.66 | |||||||||
Ratios |
||||||||||||
Days sales outstanding |
117 | 108 | 95 | |||||||||
Inventory turnover days |
73 | 80 | 69 | |||||||||
Payable days |
58 | 58 | 56 | |||||||||
Equity ratio (%) |
43.4 | % | 52.0 | % | 49.6 | % | ||||||
Return on equity (%) |
32.8 | % | 5.4 | % | 1.2 | % | ||||||
Return on capital employed (%) |
26.2 | % | 6.9 | % | 3.2 | % | ||||||
Capital turnover (times) |
1.0 | 1.1 | 1.2 | |||||||||
Cash conversion (%) |
16.7 | % | 65.3 | % | 175.0 | % | ||||||
Exchange rates used in the consolidation 3) |
||||||||||||
SEK/EUR closing rate |
9.54 | 9.23 | 9.56 | |||||||||
SEK/USD closing rate |
8.93 | 8.11 | 9.06 | |||||||||
Other |
||||||||||||
Regional inventory, end of period |
19,047 | 18,089 | 16,231 | |||||||||
Export sales from Sweden
|
21,460 | 23,254 | 107,036 |
1) | Potential ordinary shares are not considered when their conversion to ordinary shares would increase earnings per share. |
2) | Excluding amortizations and writedowns of acquired intangibles and restructuring charges. |
3) | Translation method changed from 2015. Monthly rates used to translate transactions are available on www.ericsson.com/thecompany/investors. |
2017 | 2016 | |||||||||||||||||||
End of period |
Mar 31 | Dec 31 | Sep 30 | Jun 30 | Mar 31 | |||||||||||||||
North America |
11,253 | 11,547 | 12,229 | 13,838 | 14,081 | |||||||||||||||
Latin America |
9,252 | 9,513 | 9,592 | 9,616 | 9,836 | |||||||||||||||
Northern Europe & Central Asia 1) |
18,534 | 19,136 | 19,759 | 20,177 | 20,167 | |||||||||||||||
Western & Central Europe |
13,368 | 13,646 | 13,574 | 13,727 | 12,100 | |||||||||||||||
Mediterranean |
13,040 | 12,578 | 13,110 | 12,957 | 12,906 | |||||||||||||||
Middle East |
3,256 | 3,346 | 3,479 | 3,573 | 3,608 | |||||||||||||||
Sub Saharan Africa |
2,012 | 2,086 | 2,167 | 2,347 | 2,377 | |||||||||||||||
India |
23,253 | 22,552 | 22,340 | 22,541 | 22,424 | |||||||||||||||
North East Asia |
12,962 | 13,042 | 13,434 | 13,547 | 13,623 | |||||||||||||||
South East Asia & Oceania |
3,968 | 4,018 | 4,113 | 4,184 | 4,178 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
110,898 | 111,464 | 113,797 | 116,507 | 115,300 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
1) Of which in Sweden |
14,712 | 15,303 | 15,872 | 16,190 | 16,290 |
32 Ericsson | First Quarter Report 2017
ITEMS EXCLUDING
RESTRUCTURING CHARGES
RESTRUCTURING CHARGES BY FUNCTION
2017 | 2016 | |||||||||||||||||||
Isolated quarters, SEK million |
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
Cost of sales |
1,460 | 2,140 | 546 | 461 | 328 | |||||||||||||||
Research and development expenses |
214 | 1,531 | 529 | 422 | 257 | |||||||||||||||
Selling and administrative expenses |
69 | 978 | 190 | 138 | 47 | |||||||||||||||
|
|
|
|
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|
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|
|