Form 6-K
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
January 31, 2013
LM ERICSSON
TELEPHONE COMPANY
(Translation of registrants name into English)
Torshamnsgatan 23, 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 x Form 40-F ¨
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the
Securities Exchange Act of 1934. Yes ¨ No x
Announcement of LM Ericsson Telephone Company, dated January 31, 2013 regarding Ericsson fourth quarter and full year 2012
report
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.
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TELEFONAKTIEBOLAGET LM ERICSSON (publ) |
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By: |
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/s/ NINA MACPHERSON |
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Nina Macpherson |
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Senior Vice President and |
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General Counsel |
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By: |
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/s/ HELENA NORRMAN |
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Helena Norrman |
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Senior Vice President |
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Corporate Communications |
Date: January 31, 2013
Ericsson Fourth QUARTER and full year 2012 report
January 31, 2013
Fourth quarter highlights
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Sales increased 5% YoY and 23% QoQ. Segment Networks sales increased 6% YoY driven mainly by North America. QoQ Networks sales grew 31%, primarily due
to normal higher year-end business activity |
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Operating margin excl. JVs improved to 7.1% (6.4%) YoY mainly driven by increased Networks sales, offset by continued efficiency measures
generating restructuring charges with a negative impact on operating margin of close to -3%-points (-1%) |
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Net income SEK -6.3 (1.5) b. negatively impacted by a non-cash charge related to ST-Ericsson of SEK -8.0 b. as previously communicated and a
reduction of deferred tax assets of SEK -0.5 b. related to lowered corporate tax rate in Sweden |
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EPS diluted SEK -1.99 (0.36). EPS Non-IFRS and excluding ST-Ericsson charge SEK 1.07 (0.81) |
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Cash flow from operations increased to SEK 15.7 b. driven by reduced working capital. |
Full year highlights
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Sales were flat YoY with growth in Global Services and Support Solutions, while Networks sales declined partly due to the 40% decline of CDMA equipment
sales |
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Operating margin, excluding JVs, was flat at 9.7% (9.6%). Excluding the gain related to the divestment of Sony Ericsson operating margin was 6.4%
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Net income SEK 5.9 (12.6) b. impacted positively by the Sony Ericsson gain of SEK 7.7 b. and negatively by the ST-Ericsson charge of SEK -8.0 b.
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EPS diluted SEK 1.78 (3.77). EPS Non-IFRS SEK 3.55 (5.54) |
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Cash flow from operations SEK 22.0 b. Full year cash conversion of 116%, above the target >70% |
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Dividend for 2012, proposed by board of Directors of SEK 2.75 (2.50) per share. |
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SEK b. |
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Q4 2012 |
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Q4 2011 |
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YoY Change |
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Q3 2012 |
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QoQ Change |
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Full year 2012 |
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Full year 2011 |
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Full year Change |
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Net sales |
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66.9 |
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63.7 |
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5 |
% |
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54.6 |
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23 |
% |
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227.8 |
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226.9 |
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0 |
% |
Of which Networks |
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35.3 |
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33.3 |
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6 |
% |
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26.9 |
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31 |
% |
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117.3 |
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132.4 |
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-11 |
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Of which Global Services |
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28.0 |
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27.0 |
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4 |
% |
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24.3 |
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15 |
% |
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97.0 |
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83.9 |
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16 |
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Of which Support Solutions |
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3.6 |
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3.4 |
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6 |
% |
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3.3 |
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9 |
% |
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13.5 |
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10.6 |
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26 |
% |
Gross margin |
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31.1 |
% |
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30.2 |
% |
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30.4 |
% |
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31.6 |
% |
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35.1 |
% |
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EBITA margin excl JVs and Sony Ericsson sale |
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8.8 |
% |
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8.1 |
% |
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8.7 |
% |
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8.4 |
% |
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11.6 |
% |
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Operating income excl JVs and Sony Ericsson sale |
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4.8 |
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4.1 |
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17 |
% |
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3.7 |
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30 |
% |
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14.5 |
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21.7 |
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-33 |
% |
Operating margin excl JVs and Sony Ericsson sale |
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7.1 |
% |
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6.4 |
% |
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6.7 |
% |
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6.4 |
% |
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9.6 |
% |
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EBITA margin excl JVs |
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8.8 |
% |
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8.1 |
% |
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8.7 |
% |
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11.7 |
% |
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11.6 |
% |
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Operating income excl JVs |
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4.8 |
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4.1 |
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17 |
% |
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3.7 |
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30 |
% |
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22.2 |
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21.7 |
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2 |
% |
Operating margin excl JVs |
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7.1 |
% |
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6.4 |
% |
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6.7 |
% |
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9.7 |
% |
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9.6 |
% |
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Of which Networks |
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8 |
% |
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8 |
% |
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5 |
% |
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6 |
% |
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13 |
% |
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Of which Global Services |
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6 |
% |
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6 |
% |
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8 |
% |
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6 |
% |
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7 |
% |
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Of which Support Solutions |
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8 |
% |
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0 |
% |
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14 |
% |
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9 |
% |
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-5 |
% |
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Operating income incl JVs |
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-3.8 |
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2.2 |
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3.1 |
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10.5 |
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17.9 |
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Of which ST-Ericsson |
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-8.5 |
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-0.8 |
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-0.6 |
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-11.7 |
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-2.7 |
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Income after financial items |
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-3.9 |
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1.8 |
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3.2 |
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10.2 |
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18.1 |
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Net income |
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-6.3 |
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1.5 |
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2.2 |
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5.9 |
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12.6 |
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EPS diluted, SEK |
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-1.99 |
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0.36 |
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0.67 |
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1.78 |
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3.77 |
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-53 |
% |
EPS (Non-IFRS), SEK1) |
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-1.40 |
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0.81 |
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1.04 |
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3.55 |
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5.54 |
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-36 |
% |
Cash flow from operations |
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15.7 |
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5.5 |
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187 |
% |
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7.0 |
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125 |
% |
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22.0 |
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10.0 |
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121 |
% |
Cash conversion |
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227 |
% |
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79 |
% |
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149 |
% |
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116 |
% |
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40 |
% |
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Net cash, end of period |
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38.5 |
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39.5 |
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-2 |
% |
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29.0 |
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33 |
% |
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38.5 |
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39.5 |
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-2 |
% |
1) |
EPS, diluted, excl. amortizations, write-downs of acquired intangible assets, restructuring Twelve months 2012 includes a gain from the divestment of
Sony Ericsson of SEK 7.7 b. |
COMMENTS FROM HANS VESTBERG, PRESIDENT AND CEO
Our segments showed mixed developments during the year with strong growth in Global Services and Support Solutions, while Networks had a more
challenging year. Support Solutions went from losses in 2011 into profitability and together with Global Services represented close to 50% of Group sales in 2012, compared to 42% in 2011, says Hans Vestberg, President and CEO of Ericsson
(NASDAQ:ERIC).
During the year profitability was negatively impacted by operating losses in ST-Ericsson, the ongoing network
modernization projects in Europe as well as the underlying business mix, with a higher share of coverage projects than capacity projects. With present visibility of customer demand, and with the current global economic development, underlying
business mix is expected to gradually shift towards more capacity projects during the second half of 2013.
We ended the year with strong cash
flow and a full-year cash conversion well above target. The Board of Directors proposes a dividend for 2012 of SEK 2.75 (2.50) per share, an increase by 10%.
Throughout 2012 North America was our strongest market, driven by continued mobile broadband investments and demand for services. However, regions such as South East Asia and Oceania and Sub-Saharan
Africa gradually improved during the year.
In the fourth quarter Networks sales recovered, despite continued expected decline in CDMA.
Profitability in Networks improved sequentially due to higher sales and a higher share of software sales. Sales and profitability for Global Services and Support Solutions remained stable.
The quarter was negatively impacted by a non-cash charge related to ST-Ericsson. Following the announcement of STMicroelectronics intention to exit as a shareholder, Ericsson will explore various
strategic options for ST-Ericsson assets. We believe that the modem technology, which we originally contributed to the JV, has a strategic value to the wireless industry.
The work to leverage our strength in the growth areas mobile broadband, managed services and operations and business support systems (OSS/BSS) has continued during the year, with both selective
acquisitions and divestments. In addition, we completed the divestment of Sony Ericsson and introduced a new strategy for Support Solutions. Improving profitability, reducing costs and working capital remain high on the agenda also for 2013. While
the macroeconomic and political uncertainty continues in certain regions the long-term fundamentals in the industry remain attractive and we are well positioned to continue to support our customers in a transforming ICT market, concludes
Vestberg.
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Ericsson Fourth Quarter Report 2012 |
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Financial Highlights fourth quarter
Sales in the quarter increased 5% YoY and 23% QoQ. Sales for comparable units, adjusted for FX and hedging, increased 5% YoY. The acquired Telcordia
operation added sales of SEK 1.1 b. in the quarter, split 50/50 between segments Global Services and Support Solutions.
Networks sales
increased 6% YoY, primarily driven by North America where sales in the second half 2011 were slower. CDMA equipment sales were down -18% YoY to SEK 2.5 b. in the quarter. Networks sales increased 31% QoQ due to high year-end business activity. CDMA
equipment sales increased 58% QoQ, primarily due to temporary capacity needs but are expected to continue to decline as North American operators continue their transition to LTE.
Global Services grew 4% YoY and 15% QoQ. Global Services represented 42% (42%) of Group sales in the quarter, compared to 45% in Q312.
Support Solutions sales grew 6% YoY and 9% QoQ. IPX was divested in Q312 impacting sales growth QoQ negatively. Q411, multimedia brokering (IPX) sales amounted to SEK 0.4 b.
Restructuring charges for the Group amounted to SEK 1.7 (0.7) b. This was mainly related to execution of the service delivery strategy, costs of SEK 0.3
b. related to the divestment of GPON assets as well as continued execution of efficiency measures.
Gross margin increased YoY to 31.1%
(30.2%), and from 30.4% Q312. The YoY increase was driven by higher Networks sales. The QoQ improvement is due to increased software share and lower Global Services share.
The underlying business mix, with higher share of coverage projects than capacity projects, is expected to shift towards more capacity projects in the second half of 2013. The negative impact from the
network modernization projects in Europe will continue to gradually decline during 2013.
Total operating expenses increased YoY by SEK 0.8 b.
to SEK 16.4 (15.6) b. due to higher restructuring charges. QoQ expenses increased SEK 3.1 b. partly driven by restructuring charges. Excluding acquisitions and restructuring charges, total operating expenses amounted to SEK 14.9 b., down -3%
YoY. R&D expenses amounted to SEK 9.2 (8.7) b. Selling and general administrative expenses (SG&A) increased YoY to SEK 7.1 (6.8) b. due to acquisitions.
Other operating income and expenses amounted to SEK 0.3 (0.4) b.
Operating income, excluding
JVs, increased to SEK 4.8 (4.1) b. mainly due to higher sales in Networks. Operating margin was 7.1% (6.4%) compared to 6.7% in Q312. The YoY margin improvement was driven by increased Networks sales. This was partly offset by continued
efficiency measures generating restructuring charges with a negative impact on operating margin by close to -3%-points (-1%). The QoQ margin improvement was mainly driven by higher sales in Networks and improved gross margin, partly offset by higher
operating expenses and restructuring charges.
Ericssons share in ST-Ericssons income before tax was SEK -8.5 (-0.8) b. This
includes the non-cash charge of SEK -8.0 b. for the write-down of all related investments, including provisions of SEK -3.3 b. related to the strategic options at hand for ST-Ericsson assets, as well as Ericssons share of ST-Ericsson Q412
operating loss of SEK -0.5 (-0.8) b.
Financial net amounted to SEK -0.1 (-0.3) b. and decreased QoQ from SEK 0.1 b.
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Ericsson Fourth Quarter Report 2012 |
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Taxes were SEK -2.4 (-0.3) b. The effective tax rate was impacted by the write-down of investments and a
provision related to ST-Ericsson of SEK 3.3 b. which are not subject to taxation. The corporate tax in Sweden was reduced from 26.3% to 22.0% as of January 1, 2013. This resulted in a reduction of deferred tax assets of SEK -0.5 b., which
together with the market mix in the quarter impacted tax cost negatively.
Net income decreased to SEK -6.3 (1.5) b. negatively impacted
by the ST-Ericsson charge of SEK -8.0 b.
EPS diluted was SEK -1.99 (0.36). EPS Non-IFRS, was SEK -1.40 (0.81). EPS Non-IFRS and excluding
ST-Ericsson charge was SEK 1.07 (0.81).
Cash flow from operations was positive SEK 15.7 (5.5) b., driven by reduced working capital.
Cash outlays for restructuring amounted to SEK 0.3 (0.5) b. Cash outlays of SEK 1.2 b. remain to be made from the restructuring provision.
BALANCE SHEET AND OTHER PERFORMANCE INDICATORS FOURTH QUARTER
Trade receivables increased QoQ to SEK 63.7 (61.6) b., driven by strong sales. This was partly offset by good collections and resulted in a decrease of days sales outstanding (DSO) from 101 to 86
days QoQ.
Inventory decreased QoQ to SEK 28.8 (32.4) b., positively impacted by higher sales. Inventory turnover days (ITO) improved
from 82 to 73 days. Payable days have decreased from 59 to 57 days.
Cash, cash equivalents and short-term investments amounted to SEK 76.7
(68.8) b. The net cash position increased QoQ by SEK 9.6 b. to SEK 38.5 (29.0) b., mainly from improved operating cash flow. The net cash position was negatively impacted by SEK 5.0 b. due to converting loans from short-term investments to
investments related to ST-Ericsson.
During the quarter, approximately SEK 1.0 b. of provisions were utilized, of which SEK 0.3 b. related to
restructuring. Additions of SEK 4.6 b. were made, of which SEK 3.3 b. related to ST-Ericsson and SEK 0.6 b. related to restructuring. Reversals of SEK 0.2 b. were made.
The total number of employees at the end of the quarter increased to 110,255 (109,214). The increase is mainly due to addition of service professionals, primarily in India.
Financial Highlights full year
Full
year sales were SEK 227.8 b. and flat compared to 2011. Sales for comparable units, adjusted for FX and hedging, decreased by -2%. CDMA equipment sales declined by -40% to SEK 8.4 (14.0) b. The acquired Telcordia operation added sales of SEK
4.2 b., split 50/50 between segments Global Services and Support Solutions. Revenues for IPR and licensing were SEK 6.6 (6.2) b.
Software represented 23% (23%), hardware 35% (40%) and services 42% (37%) of total sales in 2012 reflecting the good momentum in Services
throughout the year, the reduced CDMA infrastructure business as well as network modernization projects in Europe.
Restructuring charges for
the Group amounted to SEK 3.4 (3.2) b., mainly related to continued execution of the service delivery strategy and other ongoing cost reduction measures. The ongoing redundancy process in Sweden is expected to be finalized in Q1 2013, pending
closing of union negotiations.
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Ericsson Fourth Quarter Report 2012 |
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Gross margin was down for the full year to 31.6% (35.1%). The decrease is due to higher proportion of
coverage projects than capacity projects, network modernization projects in Europe as well as the increased share of Global Services sales. Close to 50% of the gross margin decline is related to the increased services share.
Total operating expenses amounted to SEK 58.9 (59.3) b. Excluding acquisitions and restructuring charges, total operating expenses amounted to SEK
55.1 b. down -4%. R&D expenses amounted to SEK 32.8 (32.6) b. and increased due to higher restructuring charges and acquisitions. R&D expenses for the full year 2012 were estimated at SEK 30-32 b. Based on current portfolio and
efficiencies in ways of working, R&D expenses for 2013 are expected to decrease somewhat. Selling and general administrative expenses (SG&A) amounted to SEK 26.0 (26.7) b. in 2012.
Other operating income and expenses were SEK 9.0 (1.3) b. of which the gain related to the divestment of Sony Ericsson amounted to SEK 7.7 b and
Multimedia brokering (IPX) amounted to SEK 0.2 b.
Operating income, excluding JVs, increased slightly to SEK 22.2 (21.7) b. and
operating margin was 9.7% (9.6%). Excluding the gain related to the divestment of Sony Ericsson operating margin was 6.4%, negatively impacted by the business mix, with higher share of coverage projects than capacity projects, and network
modernization projects in Europe.
Ericssons share in earnings of JV and associated companies was SEK -11.7 (-3.8) b., negatively
impacted by the ST-Ericsson charge. Financial net amounted to SEK -0.3 (0.2) b. mainly due to negative currency exchange revaluation effects on financial investments and liabilities.
The tax rate for 2012 was 42% (31%), negatively impacted by product and market mix, and the change in corporate tax rate in Sweden. The one time items related to the ST-Ericsson charge and the gain from
the Sony Ericsson divestment had no impact on taxes.
Net income decreased to SEK 5.9 (12.6) b. due to lower contribution from Networks
and the negative impact from ST-Ericsson of SEK -11.7 (-2.7) b. The gain related to the divestment of Sony Ericsson of SEK 7.7 b. had a positive effect on net income.
EPS diluted amounted to SEK 1.78 (3.77). EPS Non-IFRS amounted to SEK 3.55 (5.54).
The Board of
Directors proposes a dividend for 2012 of SEK 2.75 (2.50), reflecting earnings and balance sheet structure in 2012, as well as coming years business plan and expected economic development, according to Ericssons dividend policy.
Cash flow from operations was positive at SEK 22.0 (10.0) b., driven by improved working capital.
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Ericsson Fourth Quarter Report 2012 |
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5 |
BALANCE SHEET AND OTHER PERFORMANCE INDICATORS FULL YEAR
Compared to December 31, 2011, trade receivables decreased to SEK 63.7 (64.5) b. Days sales outstanding (DSO) decreased from 91 to 86 days.
Inventory decreased to SEK 28.8 (33.1) b., positively impacted by higher sales. Inventory turnover days (ITO) decreased from 78 to 73
days. Accounts payable days has decreased from 62 to 57 days.
During the year, Ericsson has performed the following refinancing activities to
extend the average debt maturity profile and to further diversify funding sources:
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Issued a USD denominated 1 b. 10-year bond |
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Borrowed EUR 150 million from the Nordic Investment Bank divided in two loans 7 and 9 years respectively |
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Signed a 7-year loan facility with the European Investment Bank of EUR 500 million, with disbursement within 18 months
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Repurchased EUR 441 million of the 2013 and 2014 EMTN Eurobonds |
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Repaid SEK 3.5 b. of Swedish bonds. |
Cash, cash equivalents and short-term investments amounted to SEK 76.7 (80.5) b. The net cash position decreased to SEK 38.5 (39.5) b.
For the full year, the net number of employees increased by 5,730 to 110,255 (104,525), of which 3,766 in services and 1,659 in R&D. In 2012, 4,552 people joined Ericsson through acquisitions and
through managed services contracts.
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Ericsson Fourth Quarter Report 2012 |
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6 |
Segment Results
NETWORKS
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|
|
|
|
|
|
|
|
|
|
SEK b. |
|
Q4 2012 |
|
|
Q4 2011 |
|
|
YoY Change |
|
|
Q3 2012 |
|
|
QoQ Change |
|
|
Full year 2012 |
|
|
Full year 2011 |
|
|
Change |
|
Network sales |
|
|
35.3 |
|
|
|
33.3 |
|
|
|
6 |
% |
|
|
26.9 |
|
|
|
31 |
% |
|
|
117.3 |
|
|
|
132.4 |
|
|
|
-11 |
% |
EBITA margin 1) |
|
|
10 |
% |
|
|
10 |
% |
|
|
|
|
|
|
8 |
% |
|
|
|
|
|
|
9 |
% |
|
|
16 |
% |
|
|
|
|
Operating margin |
|
|
8 |
% |
|
|
8 |
% |
|
|
|
|
|
|
5 |
% |
|
|
|
|
|
|
6 |
% |
|
|
13 |
% |
|
|
|
|
1) |
EBITA
Earnings before interest, tax, amortizations and write-downs of acquired intangibles. |
FOURTH QUARTER
Sales for comparable units, adjusted for FX and hedging, increased 9% YoY. The increase is mainly related to high year-end business activity in North
America and Japan, primarily within mobile broadband infrastructure. CDMA equipment sales declined -18% YoY to SEK 2.5 b. GSM sales in China continued to decline YoY. North America showed good development both YoY and QoQ. The sales increase QoQ of
31% is due to high year-end sales, 3G sales in China, LTE sales in South Korea and high project activity in parts of Western Europe. CDMA equipment sales grew by 58% QoQ due to temporary capacity needs. CDMA equipment sales are expected to continue
to decline following North American operators transition to LTE.
Ericssons leading position in packet core has driven market
demand for the Smart Services Router (SSR). 19 new contracts were signed in the quarter. Demand for microwave transport is regaining traction as mobile broadband continues to grow. In the quarter Ericsson also put the worlds first converged
multi-standard radio base station for LTE FDD/TDD into commercial operation.
Operating margin was flat YoY. The positive effect from higher
sales was partly offset by higher restructuring charges. The improved operating margin QoQ was primarily due to higher sales including temporary CDMA capacity business.
FULL YEAR
Organic and FX adjusted sales decreased -12%, primarily due to lower sales in
China, Russia, India and South Korea. However, North America grew despite the -40% decline in CDMA equipment sales. During 2012 we saw good contribution from our IP portfolio, particularly packet core.
Operators focus on improving network performance and on service differentiation has been a main driver for mobile broadband investments throughout
the year. The demand for IMS is increasing as operators are preparing for launching Voice over LTE (VoLTE). With increasing data traffic in the LTE networks the need for signaling capacity increases. The demand for circuit-switched core continues to
decline.
Operating margin decreased to 6% (13%), adversely affected by lower sales, higher share of coverage than capacity projects and
network modernization projects in Europe.
|
|
|
Ericsson Fourth Quarter Report 2012 |
|
7 |
GLOBAL SERVICES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEK b. |
|
Q4 2012 |
|
|
Q4 2011 |
|
|
YoY Change |
|
|
Q3 2012 |
|
|
QoQ Change |
|
|
Full year 2012 |
|
|
Full year 2011 |
|
|
Change |
|
Global Services sales |
|
|
28.0 |
|
|
|
27.0 |
|
|
|
4 |
% |
|
|
24.3 |
|
|
|
15 |
% |
|
|
97.0 |
|
|
|
83.9 |
|
|
|
16 |
% |
Of which Professional Services |
|
|
18.9 |
|
|
|
18.1 |
|
|
|
4 |
% |
|
|
16.4 |
|
|
|
15 |
% |
|
|
67.1 |
|
|
|
58.8 |
|
|
|
14 |
% |
Of which Managed Services |
|
|
6.8 |
|
|
|
6.0 |
|
|
|
12 |
% |
|
|
6.3 |
|
|
|
7 |
% |
|
|
25.2 |
|
|
|
21.0 |
|
|
|
20 |
% |
Of which Network Rollout |
|
|
9.2 |
|
|
|
8.9 |
|
|
|
3 |
% |
|
|
7.9 |
|
|
|
16 |
% |
|
|
30.0 |
|
|
|
25.1 |
|
|
|
20 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITA margin 1) |
|
|
7 |
% |
|
|
6 |
% |
|
|
|
|
|
|
8 |
% |
|
|
|
|
|
|
7 |
% |
|
|
7 |
% |
|
|
|
|
Of which Professional Services |
|
|
15 |
% |
|
|
14 |
% |
|
|
|
|
|
|
15 |
% |
|
|
|
|
|
|
15 |
% |
|
|
14 |
% |
|
|
|
|
Of which Network Rollout |
|
|
-10 |
% |
|
|
-10 |
% |
|
|
|
|
|
|
-5 |
% |
|
|
|
|
|
|
-9 |
% |
|
|
-8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating margin |
|
|
6 |
% |
|
|
6 |
% |
|
|
|
|
|
|
8 |
% |
|
|
|
|
|
|
6 |
% |
|
|
7 |
% |
|
|
|
|
Of which Professional Services |
|
|
15 |
% |
|
|
14 |
% |
|
|
|
|
|
|
14 |
% |
|
|
|
|
|
|
14 |
% |
|
|
13 |
% |
|
|
|
|
Of which Network Rollout |
|
|
-11 |
% |
|
|
-10 |
% |
|
|
|
|
|
|
-6 |
% |
|
|
|
|
|
|
-10 |
% |
|
|
-8 |
% |
|
|
|
|
1) |
EBITA Earnings before interest, tax, amortizations and write-downs of acquired intangibles. |
FOURTH QUARTER
Sales growth for
comparable units, adjusted for FX and hedging, was 4% YoY, primarily driven by Managed Services and Consulting and Systems Integration. Operators continue to focus on increasing their operational efficiency and reducing operating expenses through
transformation activities in the voice, IP and OSS/BSS domains, which drive demand for professional services. The QoQ sales growth of 15% was driven by Consulting and Systems Integration as well as Network Rollout.
Professional Services shows improved margin development due to continued efficiency gains and higher sales. The low margin in Network Rollout continued
in the quarter and is related to network modernization projects in Europe and coverage projects.
FULL YEAR
Global Services sales grew by SEK 13.2 b. Sales growth for comparable units, adjusted for FX and hedging, was 12%. Growth in Global Services was driven by
high Network Rollout sales and continued good momentum in Managed Services and Consulting and Systems Integration.
Global Services sales
represented 43% (37%) of Group sales. Operating margin was 6% (7%). The decrease is due to Network Rollout where margins dropped to -10% (-8%) as a consequence of the European modernization projects. Professional Services operating margin was
14% (13%), driven by increased sales and efficiency improvements.
Ericsson supports networks with more than 2.5 billion subscribers. The
strategy to industrialize the service delivery continues and the number of services professionals increased with hiring of new employees mainly in the Global Service Centers.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other information |
|
Q4 2012 |
|
|
Q3 2012 |
|
|
Q2 2012 |
|
|
Q1 2012 |
|
|
Full year 2012 |
|
|
Full year 2011 |
|
No. of signed managed services contracts |
|
|
15 |
|
|
|
11 |
|
|
|
17 |
|
|
|
9 |
|
|
|
52 |
|
|
|
70 |
|
Of which expansions/extensions |
|
|
5 |
|
|
|
5 |
|
|
|
5 |
|
|
|
4 |
|
|
|
19 |
|
|
|
32 |
|
No. of signed significant consulting & systems integration contracts1) |
|
|
8 |
|
|
|
3 |
|
|
|
7 |
|
|
|
6 |
|
|
|
24 |
|
|
|
34 |
|
Number of subscribers in networks managed by Ericsson, end of period
2) |
|
|
~ 950 m. |
|
|
|
~ 950 m. |
|
|
|
> 900 m. |
|
|
|
> 900 m. |
|
|
|
~ 950 m. |
|
|
|
900 m. |
|
Of which in network operations contracts |
|
|
550 m. |
|
|
|
550 m. |
|
|
|
500 m. |
|
|
|
500 m. |
|
|
|
550 m. |
|
|
|
500 m. |
|
Number of Ericsson services professionals, end of period |
|
|
60,000 |
|
|
|
59,000 |
|
|
|
57,000 |
|
|
|
57,000 |
|
|
|
60,000 |
|
|
|
56,000 |
|
1) |
In the areas of OSS/BSS, IP, Service Delivery Platforms and data center build projects. |
2) |
The figure includes network operations contracts and field operation contracts.
|
|
|
|
Ericsson Fourth Quarter Report 2012 |
|
8 |
SUPPORT SOLUTIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEK b. |
|
Q4 2012 |
|
|
Q4 2011 |
|
|
YoY Change |
|
|
Q3 2012 |
|
|
QoQ Change |
|
|
Full year 2012 |
|
|
Full year 2011 |
|
|
Change |
|
Support Solutions sales |
|
|
3.6 |
|
|
|
3.4 |
|
|
|
6 |
% |
|
|
3.3 |
|
|
|
9 |
% |
|
|
13.5 |
|
|
|
10.6 |
|
|
|
26 |
% |
EBITA margin 1) |
|
|
12 |
% |
|
|
6 |
% |
|
|
|
|
|
|
19 |
% |
|
|
|
|
|
|
14 |
% |
|
|
2 |
% |
|
|
|
|
Operating margin |
|
|
8 |
% |
|
|
0 |
% |
|
|
|
|
|
|
14 |
% |
|
|
|
|
|
|
9 |
% |
|
|
-5 |
% |
|
|
|
|
1) |
EBITA
Earnings before interest, tax, amortizations and write-downs of acquired intangibles. |
FOURTH QUARTER
Sales growth for comparable units, adjusted for FX and hedging, was 4% YoY. The acquired Telcordia operation added sales of SEK 0.6 b. in the quarter.
Multimedia brokering (IPX) was divested in Q312 which impacted sales negatively both YoY and QoQ. IPX sales amounted to SEK 0.4 b in Q411. Demand for OSS/BSS continued to be strong, driven by operators focus to improve efficiency and adapt to
mobile broadband business requirements.
Operating margin increased YoY, positively impacted by portfolio streamlining and efficiencies.
Operating margin declined QoQ, due to higher restructuring charges and a gain of SEK 0.2 b. in Q312 related to the divestment of IPX.
FULL
YEAR
Sales growth for comparable units, adjusted for FX and hedging, was 9%. Increased sales and execution on the new strategy, announced
in Q1 2012, as well as portfolio streamlining and efficiency improvements, generated an operating margin of 9% (-5%).
The number of
subscriptions served by Ericssons charging and billing solutions was 2.0 billion at the end of the year.
|
|
|
Ericsson Fourth Quarter Report 2012 |
|
9 |
ST-ERICSSON
Ericsson Group asset overview ST-Ericsson
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
USD m. |
|
Q4 2012 |
|
|
Q4 2011 |
|
|
YoY Change |
|
|
Q3 2012 |
|
|
QoQ Change |
|
Net sales |
|
|
358 |
|
|
|
409 |
|
|
|
-12 |
% |
|
|
359 |
|
|
|
0 |
% |
Adjusted operating income 1) |
|
|
-133 |
|
|
|
-207 |
|
|
|
36 |
% |
|
|
-148 |
|
|
|
10 |
% |
Operating income 2) |
|
|
-169 |
|
|
|
-241 |
|
|
|
30 |
% |
|
|
-174 |
|
|
|
3 |
% |
1) |
Operating income
adjusted for amortization of acquired intangibles and restructuring charges. |
2) |
Q412 excluding USD
1,531 million gain from shareholders debt forgiveness and USD 1,060 million charges for impairment of goodwill and intangible assets. |
ST-Ericsson sales were flat QoQ reflecting growth contribution from the NovaThor platform shipments as well as IP licensing. During the quarter, Ericsson and STMicroelectronics waived their credit of USD
1.5 b. under the parents loan facility. There was no remaining net debt at the end of the quarter. At the end of Q312 the net debt was USD 1.4 b. ST-Ericsson is reporting in US GAAP.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEK m. |
|
March 31, 2012 |
|
|
June 30, 2012 |
|
|
Sep 30, 2012 |
|
|
Dec 31, 2012 |
|
Investment in ST-Ericsson |
|
|
1,982 |
|
|
|
767 |
|
|
|
195 |
|
|
|
0 |
|
Loans to ST-Ericsson |
|
|
3,241 |
|
|
|
4,311 |
|
|
|
4,538 |
|
|
|
0 |
|
Total |
|
|
5,223 |
|
|
|
5,078 |
|
|
|
4,733 |
|
|
|
0 |
|
On December 10, 2012, STMicroelectronics announced its intention to exit as a shareholder in ST-Ericsson. On
December 20, 2012, Ericsson announced that it would take a non-cash charge in Q412 related to its 50% stake in ST-Ericsson. The charge includes write-down of investments to reflect the current best estimate of Ericssons share of the fair
market value of the JV and provisions related to the strategic options at hand for ST-Ericsson assets. In total, Ericsson has made write-downs of SEK -4.7 b. of ST-Ericsson investments and taken a provision of SEK -3.3 b. In addition,
Ericssons share in ST-Ericssons operating loss amounted to SEK -0.5 (-0.8) b.
As of December 31, 2012 there are no remaining
investments related to ST-Ericsson on Ericssons balance sheet. Costs and cash related to implementation of strategic options at hand will be booked against provisions.
|
|
|
Ericsson Fourth Quarter Report 2012 |
|
10 |
Regional sales Overview
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth quarter 2012 |
|
|
Growth |
|
|
Full
year 2012 |
|
|
Growth |
|
SEK b. |
|
Net-works |
|
|
Global Services |
|
|
Support Solutions |
|
|
Total |
|
|
YoY |
|
|
QoQ |
|
|
|
North America |
|
|
9.4 |
|
|
|
6.8 |
|
|
|
0.8 |
|
|
|
17.0 |
|
|
|
51 |
% |
|
|
21 |
% |
|
|
56.7 |
|
|
|
16 |
% |
Latin America |
|
|
2.9 |
|
|
|
3.2 |
|
|
|
0.4 |
|
|
|
6.5 |
|
|
|
-7 |
% |
|
|
20 |
% |
|
|
22.0 |
|
|
|
0 |
% |
Northern Europe and Central Asia |
|
|
1.6 |
|
|
|
1.2 |
|
|
|
0.2 |
|
|
|
3.0 |
|
|
|
-21 |
% |
|
|
11 |
% |
|
|
11.3 |
|
|
|
-25 |
% |
Western and Central Europe |
|
|
2.3 |
|
|
|
2.9 |
|
|
|
0.2 |
|
|
|
5.4 |
|
|
|
3 |
% |
|
|
50 |
% |
|
|
17.5 |
|
|
|
-8 |
% |
Mediterranean |
|
|
2.8 |
|
|
|
4.1 |
|
|
|
0.3 |
|
|
|
7.1 |
|
|
|
-14 |
% |
|
|
31 |
% |
|
|
23.3 |
|
|
|
-2 |
% |
Middle East |
|
|
2.5 |
|
|
|
2.1 |
|
|
|
0.5 |
|
|
|
5.1 |
|
|
|
-3 |
% |
|
|
39 |
% |
|
|
15.6 |
|
|
|
1 |
% |
Sub-Saharan Africa |
|
|
2.0 |
|
|
|
1.2 |
|
|
|
0.3 |
|
|
|
3.6 |
|
|
|
11 |
% |
|
|
27 |
% |
|
|
11.3 |
|
|
|
12 |
% |
India |
|
|
0.9 |
|
|
|
0.6 |
|
|
|
0.1 |
|
|
|
1.6 |
|
|
|
5 |
% |
|
|
-8 |
% |
|
|
6.5 |
|
|
|
-34 |
% |
China and North East Asia |
|
|
6.5 |
|
|
|
3.6 |
|
|
|
0.1 |
|
|
|
10.2 |
|
|
|
-6 |
% |
|
|
22 |
% |
|
|
36.2 |
|
|
|
-5 |
% |
South East Asia and Oceania |
|
|
2.5 |
|
|
|
1.9 |
|
|
|
0.1 |
|
|
|
4.5 |
|
|
|
13 |
% |
|
|
29 |
% |
|
|
15.1 |
|
|
|
9 |
% |
Other1) |
|
|
2.0 |
|
|
|
0.4 |
|
|
|
0.6 |
|
|
|
3.0 |
|
|
|
-10 |
% |
|
|
-10 |
% |
|
|
12.3 |
|
|
|
15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
35.3 |
|
|
|
28.0 |
|
|
|
3.6 |
|
|
|
66.9 |
|
|
|
5 |
% |
|
|
23 |
% |
|
|
227.8 |
|
|
|
0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1) |
Region Other includes licensing revenues, sales of cables, broadcast services, power modules and other businesses.
|
In the regional dimension, all of the Telcordia sales are reported in the Support Solutions segment except for North
America where it is split 50/50 between Global Services and Support Solutions. The acquired Technicolor Broadcast Service Division is reported in region Other. Multimedia brokering (IPX) was previously reported in each region in segment
Support Solutions. For the first three quarters 2012 it was part of region Other. Multimedia brokering (IPX) was divested end Q312.
North America. All segments grew both YoY and QoQ driven by continued high activity levels in coverage projects. CDMA sales continue to wind down,
but at a slower pace in the quarter due to temporary capacity needs.
Coverage, consolidation and network evolution were market priorities
throughout 2012, driving strong performance across all segments.
Latin America. Networks and Global Services business slowed down YoY
due to low initial LTE deployment. Global Services sales increased QoQ driven by managed services and systems integration. The sequential increase in Networks was driven by 3G sales. OSS/BSS and IPTV contributed to the YoY growth in Support
Solutions.
During 2012 all major operators decided on LTE suppliers, resulting in an estimated market share for Ericsson of more than 50%.
Northern Europe and Central Asia. Networks sales were basically flat both YoY and QoQ, with continued low investment levels in Russia.
Global Services declined YoY mainly due to large 3G rollout in Russia during 2011. Global Services growth QoQ was driven by systems integration sales. Support Solutions grew YoY and QoQ mainly through Content Delivery Network deployments.
Throughout the year the trend of lower investments, primarily in Russia, continued to impact sales negatively.
Western and Central Europe. The QoQ growth in Networks was driven by high project activity and ongoing modernization projects. OSS/BSS and systems
integration drove sales in Global Services and Support Solutions.
Cautious operator investments caused a decline for the full year.
|
|
|
Ericsson Fourth Quarter Report 2012 |
|
11 |
Mediterranean. The YoY decline was driven by current market and macroeconomic conditions. The
modernization projects are progressing according to plan. The QoQ improvement was driven by growth in all segments.
2012 was impacted by weak
macro economy in many countries and cautious operator investments.
Middle East. Networks sales grew QoQ after several quarters of
lower activity. OSS/BSS developed favorably both YoY and QoQ, driven by operators focus on quality and operational efficiency. Managed services showed good growth in the quarter and for the full year.
The political unrest in some countries continues and has negatively impacted operator investments during the year, leading to a flat sales development in
2012.
Sub-Saharan Africa. The sales increase YoY is driven by operator investments in Nigeria and South Africa. While 3G is
increasing, the majority of sales is still related to 2G. Data traffic is growing across the region and LTE deployments have started with three networks launched in Southern Africa.
Following a slow 2011, sales in all segments in the region grew during 2012.
India.
Continued low activity levels with operator investments only in certain areas. Data traffic is growing from a low base as smartphones and tablets become more affordable. Growth in Support Solutions YoY was driven by Telcordia.
The full year decrease is mainly due to large initial 3G deployments in the first three quarters of 2011.
China and North East Asia. Networks declined YoY, driven by continued lower sales of GSM in China as well as lower 3G sales in South Korea as
operators transition to LTE. Global Services growth continued mainly driven by turnkey projects in Japan. Sequentially Networks grew, mainly driven by LTE expansions in Japan and South Korea as well as by 3G expansions in China.
Sales grew in Japan in 2012, however, not fully offsetting the lower sales of GSM in China and 3G in South Korea.
South East Asia and Oceania. Positive development both YoY and QoQ driven by continued momentum for data traffic, particularly in Indonesia.
Global Services sales were also driven by deployments in Australia.
Full-year growth was driven by sales in Indonesia, underpinned by the
Global Services performance in Australia and network deployments in Thailand and the Philippines.
Other. Multimedia Brokering (IPX)
was divested at the end of Q312. Licensing revenues continued to show stable development YoY. Sales of broadcast services, cables, power modules and other businesses are also included in Other.
The full-year growth was driven by licensing revenues which increased to SEK 6.6 (6.2) b., the acquired Technicolor Broadcast Service Division that
was consolidated in Q312 and Multimedia brokering (IPX) that was reported in Region Other for the first three quarters of the year.
|
|
|
Ericsson Fourth Quarter Report 2012 |
|
12 |
Market data
GROWTH RATES ARE BASED ON ERICSSON AND MARKET ESTIMATES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 |
|
|
Q4 |
|
|
|
|
|
FULL YEAR |
|
|
Ericsson forecast |
|
|
|
2012 |
|
|
2011 |
|
|
Change |
|
|
2010 |
|
|
2011 |
|
|
2012 |
|
|
2013 |
|
Mobile subscriptions, billion |
|
|
~6.3 |
|
|
|
5.8 |
|
|
|
~9 |
% |
|
|
5.1 |
|
|
|
5.8 |
|
|
|
~6.3 |
|
|
|
~6.8 |
|
Net additions, million |
|
|
~140 |
|
|
|
165 |
|
|
|
~-15 |
% |
|
|
650 |
|
|
|
650 |
|
|
|
~550 |
|
|
|
~500 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mobile broadband, billion 1) |
|
|
~1.5 |
|
|
|
1.0 |
|
|
|
~50 |
% |
|
|
0.6 |
|
|
|
1.0 |
|
|
|
~1.5 |
|
|
|
~2.1 |
|
Net additions, million |
|
|
~125 |
|
|
|
120 |
|
|
|
~2 |
% |
|
|
300 |
|
|
|
400 |
|
|
|
~500 |
|
|
|
~600 |
|
1) |
Mobile broadband
includes handsets, tablets, mobile PCs and mobile routers for the following technologies: HSPA, LTE, CDMA2000 EV-DO, TD-SCDMA and WiMAX. |
Note: due to continuous improvements in reported data from operators, historical subscriptions figures might have changed compared to those previously reported, affecting comparison of net additions and
total figures. For India we have changed measurement to VLR-subscribers to better reflect underlying growth. All figures are approximate.
Parent Company Information
Income after
financial items was SEK -4.9 (6.4) b.
A write-down of the original investment in ST-Ericsson of SEK 8.6 b. was made during the quarter.
This write-down does not have any impact on Group level. Another write-down was made including the short-term credit facility to ST-Ericsson of SEK 5.0 b. and a provision of SEK 3.3 b. relating to the strategic options at hand for ST-Ericsson
assets. The total write-downs and provision relating to ST-Ericsson in the quarter amount to SEK 17.0 b.
Major changes in the Parent
Companys financial position for the year were; lower cash, cash equivalents and short-term investments of SEK 1.5 b., and increased current and non-current receivables from subsidiaries of SEK 7.2 b. At the end of the quarter, cash, cash
equivalents and short-term investments amounted to SEK 57.4 (58.9) b.
In accordance with the conditions of the long-term variable
remuneration program (LTV) for Ericsson employees, 2,419,296 shares from treasury stock were sold or distributed to employees during the fourth quarter. The holding of treasury stock at December 31, 2012, was 84,798,095 Class B shares.
DIVIDEND PROPOSAL
The Board of
Directors will propose to the Annual General Meeting a dividend of SEK 2.75 (2.50) per share, representing some SEK 9.1 (8.2) b., and April 12, 2013, as the record day for payment of dividend. The dividend is reflecting 2012
years earnings and balance sheet structure, as well as coming years business plans and expected economic development.
Ericsson
annual general meeting
The Annual General Meeting of shareholders will be held on April 9, 2013, 15.00 (CET) at Kistamässan in
Kista, Stockholm, Sweden.
ANNUAL REPORT
The annual report will be made available on our website www.ericsson.com and at the Ericsson headquarters, Torshamnsgatan 23, Kista, Stockholm, Sweden, during the first weeks of March.
|
|
|
Ericsson Fourth Quarter Report 2012 |
|
13 |
Other Information
SAMSUNG LITIGATION
On November 27, 2012, Ericsson filed two patent infringement
lawsuits in the US District Court for the Eastern District of Texas against Samsung. Ericsson seeks damages and an injunction. Ericsson also asked the Court to adjudge that Samsung breached its commitment to license any standard-essential patents it
owns on fair, reasonable, and non-discriminatory terms and to declare Samsungs allegedly standard essential patents to be unenforceable.
On November 30, 2012, Ericsson filed a complaint with the US International Trade Commission (ITC) seeking an exclusion order blocking Samsung from
importing certain products into the US. The ITC instituted an investigation of Ericssons complaint on January 3, 2013.
On
December 21, 2012, Samsung filed a complaint with the US International Trade Commission (ITC) seeking an exclusion order blocking Ericsson from importing certain products into the US. The ITC instituted an investigation of Samsungs
complaint on January 25, 2013.
REDUCTION OF NUMBER OF EMPLOYEES IN SWEDEN
On November 7, 2012, Ericsson informed its employees in Sweden about the plan to reduce its operations in Sweden by including a reduction of an
estimated 1,550 positions. Union negotiations are ongoing and affected employees are expected to be informed during March 2013.
ON NEW
POSITIONS
On November 19, 2012, Sara Mazur assumed the position as Vice President and Head of Ericsson Research. Prior to this Sara
Mazur held the position as Head of Systems Management at Business Unit Networks.
On January 1, 2013, Mats H Olsson assumed the role as
Senior Vice President Asia-Pacific. In this role he will continue to report to President and CEO Hans Vestberg and be a member of the Executive Leadership Team. Prior to this Mats H Olsson held the position as Head of region China and North East
Asia.
On January 1, 2013, Rima Qureshi assumed the position as Senior Vice President Strategic Projects. In this role she will continue
to report to President and CEO Hans Vestberg and be a member of the Executive Leadership Team. Rima Qureshi previously held the position as Head of Business Unit CDMA Mobile Systems which was transited into business unit Networks on January 1,
2013.
Effective April 1, 2013, Fredrik Jejdling will assume the position as head of region Sub-Saharan Africa. In this position Fredrik
Jejdling will remain member of the Global Leadership Team. Fredrik Jejdling currently holds the position as head of region India.
|
|
|
Ericsson Fourth Quarter Report 2012 |
|
14 |
Post-closing events
SALE OF PATENTS TO UNWIRED PLANET
On January 10, 2013, Ericsson entered into an
agreement with Unwired Planet whereby Ericsson will transfer 2,185 issued patents and patent applications to Unwired Planet. Ericsson will also contribute 100 additional patent assets annually to Unwired Planet commencing in 2014 through 2018.
Unwired Planet will compensate Ericsson with certain ongoing rights in future revenues generated from the enlarged patent portfolio. Unwired Planet will also grant Ericsson a license to its patent portfolio.
ACQUISITION OF DEVOTEAM
On
January 21, 2013, Ericsson announced its intention to acquire Devoteam Telecom & Media operations in France. Devoteam is a leader in Information and Communications Technology consulting with 5,000 employees in Europe, Middle East and
Africa.
The acquisition is in line with Ericssons services strategy to broaden its IT capabilities.
|
|
|
Ericsson Fourth Quarter Report 2012 |
|
15 |
Assessment of risk environment
Ericssons operational and financial risk factors and uncertainties along with our strategies and tactics to mitigate risk exposures or limit unfavorable outcomes are described in our Annual Report
2011. Compared to the risks described in the Annual Report 2011, no material, new or changed risk factors or uncertainties have been identified in the quarter.
Risk factors and uncertainties in focus short-term for the Parent Company and the Ericsson Group include:
|
|
|
Potential negative effects on operators willingness to invest in network development due to uncertainty in the financial markets and a weak
economic business environment, or reduced consumer telecom spending, or increased pressure on us to provide financing; |
|
|
|
Uncertainty regarding the financial stability of suppliers, for example due to lack of financing; |
|
|
|
Effects on gross margins and/or working capital of the product mix in the Networks segment between sales of upgrades and expansions (mainly software)
and new build-outs of coverage (mainly hardware); |
|
|
|
Effects on gross margins of the product mix in the Global Services segment including proportion of new network build-outs and share of new managed
services deals with initial transition costs; |
|
|
|
A continued volatile sales pattern in the Support Solutions segment or variability in our overall sales seasonality could make it more difficult to
forecast future sales; |
|
|
|
Effects of the ongoing industry consolidation among our customers as well as between our largest competitors, e.g. with postponed investments and
intensified price competition as a consequence; |
|
|
|
Implementation of the strategic options at hand for our joint venture ST-Ericsson and related capital need; |
|
|
|
Changes in foreign exchange rates, in particular USD and EUR; |
|
|
|
Political unrest or instability in certain markets; |
|
|
|
Effects on production and sales from restrictions with respect to timely and adequate supply of materials, components and production capacity and other
vital services on competitive terms; |
|
|
|
Natural disasters and other events, affecting business, production, supply and transportation. |
Ericsson stringently monitors the compliance with all relevant trade regulations and trade embargos applicable to dealings with customers operating in
countries where there are trade restrictions or trade restrictions are discussed. Moreover, Ericsson operates globally in accordance with Group policies and directives for business ethics and conduct.
Stockholm, January 31, 2013
Telefonaktiebolaget LM Ericsson (publ)
Hans
Vestberg, President and CEO
Org. Nr. 556016-0680
Date for next report: April 24, 2013
|
|
|
Ericsson Fourth Quarter Report 2012 |
|
16 |
Auditors Review Report
We have reviewed this report for the period January 1, 2012, to December 31, 2012, for Telefonaktiebolaget LM Ericsson (publ). The board of
directors and the CEO are responsible for the preparation and presentation of this financial information in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this financial information based
on our review.
We conducted our review in accordance with the Swedish Standard on Review Engagements SÖG 2410, Review of Interim Report
Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in
scope than an audit conducted in accordance with International Standards on Auditing (ISA) and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become
aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Based on our review,
nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act, regarding the Group, and with the Swedish Annual Accounts
Act, regarding the Parent Company.
Stockholm, January 31, 2013
PricewaterhouseCoopers AB
|
|
|
Peter Nyllinge |
|
Johan Engstam |
|
|
Authorized Public Accountant
Auditor in Charge |
|
Authorized Public Accountant |
|
|
|
Ericsson Fourth Quarter Report 2012 |
|
17 |
Editors Note
To read the complete report with tables, please go to: www.ericsson.com/res/investors/docs/q-reports/2012/12month12-en.pdf
Ericsson invites media, investors and analysts to a press conference at the Ericsson Studio, Grönlandsgången 4, Stockholm, at 09.00 (CET), January 31, 2013. An analysts, investors and
media conference call will begin at 14.00 (CET).
Live webcast of the press conference and conference call as well as supporting slides will
be available at www.ericsson.com/press and www.ericsson.com/investors
Video material will be published during the day on
www.ericsson.com/press
FOR FURTHER INFORMATION, PLEASE CONTACT
Helena Norrman, Senior Vice President, Communications
Phone: +46 10 719 3472
E-mail: investor.relations@ericsson.com or media.relations@ericsson.com
|
|
|
INVESTORS |
|
MEDIA |
|
|
Stefan Jelvin, Director,
Investor Relations Phone: +46 10 714
2039 +46 709 860 227 E-mail:
investor.relations@ericsson.com |
|
Ola Rembe, Vice President,
Head of Corporate Communications & PR
Phone: +46 10 719 9727 +46 730 244
873 E-mail: media.relations@ericsson.com |
|
|
Åsa Konnbjer, Director,
Investor Relations Phone: +46 10 713
3928 +46 730 825 928 E-mail:
investor.relations@ericsson.com |
|
Corporate Communications & PR Phone: +46 10 719 69 92 E-mail: media.relations@ericsson.com |
Rikard Tunedal, Director,
Investor Relations
Phone: +46 10 714 5400
+46 761 005 400
E-mail:
investor.relations@ericsson.com
Telefonaktiebolaget LM Ericsson (publ)
Org. number: 556016-0680
Torshamnsgatan 23
SE-164 83 Stockholm
Phone: +46 10 719 0000
www.ericsson.com
|
|
|
Ericsson Fourth Quarter Report 2012 |
|
18 |
Safe Harbor Statement of Ericsson under the US Private Securities Litigation Reform Act of 1995;
All statements made or incorporated by reference in this release, other than statements or characterizations of historical facts, are
forward-looking statements. These forward-looking statements are based on our current expectations, estimates and projections about our industry, managements beliefs and certain assumptions made by us. Forward-looking statements can often be
identified by words such as anticipates, expects, intends, plans, predicts, believes, seeks, estimates, may, will,
should, would, potential, continue, and variations or negatives of these words, and include, among others, statements regarding: (i) strategies, outlook and growth prospects; (ii) positioning
to deliver future plans and to realize potential for future growth; (iii) liquidity and capital resources and expenditure, and our credit ratings; (iv) growth in demand for our products and services; (v) our joint venture activities;
(vi) economic outlook and industry trends; (vii) developments of our markets; (viii) the impact of regulatory initiatives; (ix) research and development expenditures; (x) the strength of our competitors; (xi) future
cost savings; (xii) plans to launch new products and services; (xiii) assessments of risks; (xiv) integration of acquired businesses; (xv) compliance with rules and regulations and (xvi) infringements of intellectual
property rights of others.
In addition, any statements that refer to expectations, projections or other characterizations of future events or
circumstances, including any underlying assumptions, are forward-looking statements. These forward-looking statements speak only as of the date hereof and are based upon the information available to us at this time. Such information is subject to
change, and we will not necessarily inform you of such changes. These statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict. Therefore, our actual results could
differ materially and adversely from those expressed in any forward-looking statements as a result of various factors. Important factors that may cause such a difference for Ericsson include, but are not limited to: (i) material adverse changes
in the markets in which we operate or in global economic conditions; (ii) increased product and price competition; (iii) reductions in capital expenditure by network operators; (iv) the cost of technological innovation and increased
expenditure to improve quality of service; (v) significant changes in market share for our principal products and services; (vi) foreign exchange rate or interest rate fluctuations; and (vii) the successful implementation of our
business and operational initiatives.
|
|
|
Ericsson Fourth Quarter Report 2012 |
|
19 |
Financial Statements and Additional Information
|
|
|
Ericsson Fourth Quarter Report 2012 |
|
20 |
CONSOLIDATED INCOME STATEMENT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oct - Dec |
|
|
|
|
|
Jan - Dec |
|
|
|
|
SEK million |
|
2011 |
|
|
2012 |
|
|
Change |
|
|
2011 |
|
|
2012 |
|
|
Change |
|
Net sales |
|
|
63,667 |
|
|
|
66,936 |
|
|
|
5 |
% |
|
|
226,921 |
|
|
|
227,779 |
|
|
|
0 |
% |
Cost of sales |
|
|
-44,463 |
|
|
|
-46,133 |
|
|
|
4 |
% |
|
|
-147,200 |
|
|
|
-155,699 |
|
|
|
6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross income |
|
|
19,204 |
|
|
|
20,803 |
|
|
|
8 |
% |
|
|
79,721 |
|
|
|
72,080 |
|
|
|
-10 |
% |
Gross margin (%) |
|
|
30.2 |
% |
|
|
31.1 |
% |
|
|
|
|
|
|
35.1 |
% |
|
|
31.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
Research and development expenses |
|
|
-8,715 |
|
|
|
-9,247 |
|
|
|
6 |
% |
|
|
-32,638 |
|
|
|
-32,833 |
|
|
|
1 |
% |
Selling and administrative expenses |
|
|
-6,837 |
|
|
|
-7,139 |
|
|
|
4 |
% |
|
|
-26,683 |
|
|
|
-26,023 |
|
|
|
-2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
-15,552 |
|
|
|
-16,386 |
|
|
|
5 |
% |
|
|
-59,321 |
|
|
|
-58,856 |
|
|
|
-1 |
% |
|
|
|
|
|
|
|
Other operating income and expenses 1) |
|
|
403 |
|
|
|
345 |
|
|
|
|
|
|
|
1,278 |
|
|
|
8,965 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income before shares in earnings of JV and associated companies |
|
|
4,055 |
|
|
|
4,762 |
|
|
|
17 |
% |
|
|
21,678 |
|
|
|
22,189 |
|
|
|
2 |
% |
Operating margin before shares in earnings of JV and associated companies (%) |
|
|
6.4 |
% |
|
|
7.1 |
% |
|
|
|
|
|
|
9.6 |
% |
|
|
9.7 |
% |
|
|
|
|
Shares in earnings of JV and associated companies |
|
|
-1,899 |
|
|
|
-8,565 |
|
|
|
351 |
% |
|
|
-3,778 |
|
|
|
-11,731 |
|
|
|
211 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
2,156 |
|
|
|
-3,803 |
|
|
|
-276 |
% |
|
|
17,900 |
|
|
|
10,458 |
|
|
|
-42 |
% |
|
|
|
|
|
|
|
Financial income |
|
|
405 |
|
|
|
438 |
|
|
|
|
|
|
|
2,882 |
|
|
|
1,708 |
|
|
|
|
|
Financial expenses |
|
|
-732 |
|
|
|
-512 |
|
|
|
|
|
|
|
-2,661 |
|
|
|
-1,984 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income after financial items |
|
|
1,829 |
|
|
|
-3,877 |
|
|
|
-312 |
% |
|
|
18,121 |
|
|
|
10,182 |
|
|
|
-44 |
% |
|
|
|
|
|
|
|
Taxes |
|
|
-338 |
|
|
|
-2,378 |
|
|
|
|
|
|
|
-5,552 |
|
|
|
-4,244 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
1,491 |
|
|
|
-6,255 |
|
|
|
-520 |
% |
|
|
12,569 |
|
|
|
5,938 |
|
|
|
-53 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Stockholders of the Parent Company |
|
|
1,154 |
|
|
|
-6,462 |
|
|
|
|
|
|
|
12,194 |
|
|
|
5,775 |
|
|
|
|
|
- Non-controlling interests |
|
|
337 |
|
|
|
207 |
|
|
|
|
|
|
|
375 |
|
|
|
163 |
|
|
|
|
|
|
|
|
|
|
|
|
Other information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average number of shares, basic (million) |
|
|
3,209 |
|
|
|
3,219 |
|
|
|
|
|
|
|
3,206 |
|
|
|
3,216 |
|
|
|
|
|
Earnings per share, basic (SEK) 2) |
|
|
0.36 |
|
|
|
-2.01 |
|
|
|
|
|
|
|
3.80 |
|
|
|
1.80 |
|
|
|
|
|
Earnings per share, diluted (SEK) 2) |
|
|
0.36 |
|
|
|
-1.99 |
|
|
|
|
|
|
|
3.77 |
|
|
|
1.78 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STATEMENT OF COMPREHENSIVE INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oct - Dec |
|
|
Jan - Dec |
|
SEK million |
|
2011 |
|
|
2012 |
|
|
2011 |
|
|
2012 |
|
Net income |
|
|
1,491 |
|
|
|
-6,255 |
|
|
|
12,569 |
|
|
|
5,938 |
|
|
|
|
|
|
Other comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actuarial gains and losses, and the effect of the asset ceiling, related to pensions |
|
|
211 |
|
|
|
800 |
|
|
|
-6,963 |
|
|
|
-451 |
|
Revaluation of other investments in shares and participations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value remeasurement |
|
|
1 |
|
|
|
4 |
|
|
|
|
|
|
|
6 |
|
|
|
|
|
|
Cash flow hedges |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains/losses arising during the period |
|
|
116 |
|
|
|
602 |
|
|
|
996 |
|
|
|
1,668 |
|
Reclassification adjustments for gains/losses included in profit or loss |
|
|
355 |
|
|
|
-353 |
|
|
|
-2,028 |
|
|
|
-568 |
|
Adjustments for amounts transferred to initial carrying amount of hedged items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
92 |
|
Changes in cumulative translation adjustments |
|
|
-538 |
|
|
|
143 |
|
|
|
-964 |
|
|
|
-3,947 |
|
Share of other comprehensive income on JV and associated companies |
|
|
-85 |
|
|
|
-463 |
|
|
|
-262 |
|
|
|
-486 |
|
Tax on items relating to components of other comprehensive income |
|
|
95 |
|
|
|
-548 |
|
|
|
2,158 |
|
|
|
-422 |
|
Total other comprehensive income |
|
|
155 |
|
|
|
185 |
|
|
|
-7,063 |
|
|
|
-4,108 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income |
|
|
1,646 |
|
|
|
-6,070 |
|
|
|
5,506 |
|
|
|
1,830 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders of the Parent Company |
|
|
1,282 |
|
|
|
-6,284 |
|
|
|
5,081 |
|
|
|
1,716 |
|
Non-controlling interests |
|
|
364 |
|
|
|
214 |
|
|
|
425 |
|
|
|
114 |
|
1) |
Includes gain on sale of Sony Ericsson SEK 7.7 b. in Q1 2012 |
2) |
Based on Net income attributable to stockholders of the Parent Company |
|
|
|
Ericsson Fourth Quarter Report 2012 |
|
21 |
CONSOLIDATED BALANCE SHEET
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dec 31 |
|
|
Sep 30 |
|
|
Dec 31 |
|
SEK million |
|
2011 |
|
|
2012 |
|
|
2012 |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
|
|
|
|
|
|
|
Intangible assets |
|
|
|
|
|
|
|
|
|
|
|
|
Capitalized development expenses |
|
|
3,523 |
|
|
|
3,964 |
|
|
|
3,840 |
|
Goodwill |
|
|
27,438 |
|
|
|
30,319 |
|
|
|
30,404 |
|
Intellectual property rights, brands and other intangible assets |
|
|
13,083 |
|
|
|
16,125 |
|
|
|
15,202 |
|
|
|
|
|
Property, plant and equipment |
|
|
10,788 |
|
|
|
11,559 |
|
|
|
11,493 |
|
|
|
|
|
Financial assets |
|
|
|
|
|
|
|
|
|
|
|
|
Equity in JV and associated companies |
|
|
5,965 |
|
|
|
1,526 |
|
|
|
2,842 |
|
Other investments in shares and participations |
|
|
2,199 |
|
|
|
2,010 |
|
|
|
386 |
|
Customer financing, non-current |
|
|
1,400 |
|
|
|
1,331 |
|
|
|
1,290 |
|
Other financial assets, non-current |
|
|
4,117 |
|
|
|
3,704 |
|
|
|
3,964 |
|
|
|
|
|
Deferred tax assets |
|
|
13,020 |
|
|
|
13,506 |
|
|
|
12,321 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
81,533 |
|
|
|
84,044 |
|
|
|
81,742 |
|
Current assets |
|
|
|
|
|
|
|
|
|
|
|
|
Inventories |
|
|
33,070 |
|
|
|
32,424 |
|
|
|
28,802 |
|
|
|
|
|
Trade receivables |
|
|
64,522 |
|
|
|
61,562 |
|
|
|
63,660 |
|
Customer financing, current |
|
|
2,845 |
|
|
|
2,703 |
|
|
|
4,019 |
|
Other current receivables |
|
|
17,837 |
|
|
|
23,417 |
|
|
|
20,065 |
|
|
|
|
|
Short-term investments |
|
|
41,866 |
1) |
|
|
35,976 |
1) |
|
|
32,026 |
|
Cash and cash equivalents |
|
|
38,676 |
|
|
|
32,845 |
|
|
|
44,682 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
198,816 |
|
|
|
188,927 |
|
|
|
193,254 |
|
|
|
|
|
Total assets |
|
|
280,349 |
|
|
|
272,971 |
|
|
|
274,996 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY AND LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders equity |
|
|
143,105 |
|
|
|
143,079 |
|
|
|
136,883 |
|
Non-controlling interest in equity of subsidiaries |
|
|
2,165 |
|
|
|
1,463 |
|
|
|
1,600 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
145,270 |
|
|
|
144,542 |
|
|
|
138,483 |
|
Non-current liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
Post-employment benefits |
|
|
10,016 |
|
|
|
9,732 |
|
|
|
9,503 |
|
Provisions, non-current |
|
|
280 |
|
|
|
196 |
|
|
|
211 |
|
Deferred tax liabilities |
|
|
2,250 |
|
|
|
3,604 |
|
|
|
3,120 |
|
Borrowings, non-current |
|
|
23,256 |
|
|
|
22,910 |
|
|
|
23,898 |
|
Other non-current liabilities |
|
|
2,248 |
|
|
|
2,513 |
|
|
|
2,377 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
38,050 |
|
|
|
38,955 |
|
|
|
39,109 |
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
Provisions, current |
|
|
5,985 |
|
|
|
5,047 |
|
|
|
8,427 |
|
Borrowings, current |
|
|
7,765 |
|
|
|
7,196 |
|
|
|
4,769 |
|
Trade payables |
|
|
25,309 |
|
|
|
21,968 |
|
|
|
23,100 |
|
Other current liabilities |
|
|
57,970 |
|
|
|
55,263 |
|
|
|
61,108 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
97,029 |
|
|
|
89,474 |
|
|
|
97,404 |
|
|
|
|
|
Total equity and liabilities |
|
|
280,349 |
|
|
|
272,971 |
|
|
|
274,996 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Of which interest-bearing liabilities and post-employment benefits |
|
|
41,037 |
|
|
|
39,838 |
|
|
|
38,170 |
|
|
|
|
|
Of which net cash |
|
|
39,505 |
|
|
|
28,983 |
|
|
|
38,538 |
|
|
|
|
|
Assets pledged as collateral |
|
|
452 |
|
|
|
538 |
|
|
|
520 |
|
Contingent liabilities |
|
|
609 |
|
|
|
548 |
|
|
|
613 |
|
1) |
Including loan to ST-Ericsson of SEK 2,759 million as of December 31, 2011, SEK
4,538 million as of September 30, 2012 |
|
|
|
Ericsson Fourth Quarter Report 2012 |
|
22 |
CONSOLIDATED STATEMENT OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oct - Dec |
|
|
Jan - Dec |
|
SEK million |
|
2011 |
|
|
2012 |
|
|
2011 |
|
|
2012 |
|
Operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
1,491 |
|
|
|
-6,255 |
|
|
|
12,569 |
|
|
|
5,938 |
|
Adjustments to reconcile net income to cash |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxes |
|
|
752 |
|
|
|
2,049 |
|
|
|
1,994 |
|
|
|
-1,140 |
|
Earnings/dividends in JV and associated companies |
|
|
1,817 |
|
|
|
8,707 |
|
|
|
3,710 |
|
|
|
11,769 |
|
Depreciation, amortization and impairment losses |
|
|
2,428 |
|
|
|
2,779 |
|
|
|
9,036 |
|
|
|
9,889 |
|
Other |
|
|
472 |
|
|
|
-366 |
|
|
|
-2,127 |
|
|
|
-7,441 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,960 |
|
|
|
6,914 |
|
|
|
25,182 |
|
|
|
19,015 |
|
|
|
|
|
|
Changes in operating net assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventories |
|
|
5,208 |
|
|
|
3,418 |
|
|
|
-3,243 |
|
|
|
2,752 |
|
Customer financing, current and non-current |
|
|
290 |
|
|
|
-1,377 |
|
|
|
74 |
|
|
|
-1,259 |
|
Trade receivables |
|
|
565 |
|
|
|
-2,280 |
|
|
|
-1,700 |
|
|
|
-1,103 |
|
Trade payables |
|
|
246 |
|
|
|
1,140 |
|
|
|
-1,648 |
|
|
|
-1,311 |
|
Provisions and post-employment benefits |
|
|
-2,278 |
|
|
|
379 |
|
|
|
-5,695 |
|
|
|
-1,920 |
|
Other operating assets and liabilities, net |
|
|
-5,524 |
|
|
|
7,497 |
|
|
|
-2,988 |
|
|
|
5,857 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-1,493 |
|
|
|
8,777 |
|
|
|
-15,200 |
|
|
|
3,016 |
|
|
|
|
|
|
Cash flow from operating activities |
|
|
5,467 |
|
|
|
15,691 |
|
|
|
9,982 |
|
|
|
22,031 |
|
|
|
|
|
|
Investing activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments in property, plant and equipment |
|
|
-1,524 |
|
|
|
-1,326 |
|
|
|
-4,994 |
|
|
|
-5,429 |
|
Sales of property, plant and equipment |
|
|
172 |
|
|
|
252 |
|
|
|
386 |
|
|
|
568 |
|
Acquisitions/divestments of subsidiaries and other operations, net 1) |
|
|
-235 |
|
|
|
120 |
|
|
|
-3,128 |
|
|
|
-2,077 |
|
Product development |
|
|
-560 |
|
|
|
-430 |
|
|
|
-1,515 |
|
|
|
-1,641 |
|
Other investing activities |
|
|
-210 |
|
|
|
213 |
|
|
|
-900 |
|
|
|
1,540 |
|
Short-term investments |
|
|
-1,533 |
|
|
|
-1,045 |
|
|
|
14,692 |
|
|
|
2,151 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from investing activities |
|
|
-3,890 |
|
|
|
-2,216 |
|
|
|
4,541 |
|
|
|
-4,888 |
|
|
|
|
|
|
Cash flow before financing activities |
|
|
1,577 |
|
|
|
13,475 |
|
|
|
14,523 |
|
|
|
17,143 |
|
|
|
|
|
|
Financing activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends paid |
|
|
-5 |
|
|
|
1 |
|
|
|
-7,455 |
|
|
|
-8,632 |
|
Other financing activities |
|
|
828 |
|
|
|
-1,609 |
|
|
|
961 |
|
|
|
-753 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from financing activities |
|
|
823 |
|
|
|
-1,608 |
|
|
|
-6,494 |
|
|
|
-9,385 |
|
|
|
|
|
|
Effect of exchange rate changes on cash |
|
|
14 |
|
|
|
-30 |
|
|
|
-217 |
|
|
|
-1,752 |
|
|
|
|
|
|
Net change in cash |
|
|
2,414 |
|
|
|
11,837 |
|
|
|
7,812 |
|
|
|
6,006 |
|
|
|
|
|
|
Cash and cash equivalents, beginning of period |
|
|
36,262 |
|
|
|
32,845 |
|
|
|
30,864 |
|
|
|
38,676 |
|
|
|
|
|
|
Cash and cash equivalents, end of period |
|
|
38,676 |
|
|
|
44,682 |
|
|
|
38,676 |
|
|
|
44,682 |
|
1) |
Includes payment of external loan of SEK -6.2 b. attributable to the acquisition of Telcordia in
Q1 2012 |
|
|
|
Ericsson Fourth Quarter Report 2012 |
|
23 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
|
|
|
|
|
|
|
|
|
|
|
Jan - Dec |
|
|
Jan - Dec |
|
SEK million |
|
2011 |
|
|
2012 |
|
Opening balance |
|
|
146,785 |
|
|
|
145,270 |
|
Total comprehensive income |
|
|
5,506 |
|
|
|
1,830 |
|
Sale/Repurchase of own shares |
|
|
92 |
|
|
|
-93 |
|
Stock issue |
|
|
|
|
|
|
159 |
|
Stock Purchase Plan |
|
|
413 |
|
|
|
405 |
|
Dividends paid |
|
|
-7,455 |
|
|
|
-8,632 |
|
Transactions with non-controlling interests |
|
|
-71 |
|
|
|
-456 |
|
|
|
|
|
|
|
|
|
|
Closing balance |
|
|
145,270 |
|
|
|
138,483 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Ericsson Fourth Quarter Report 2012 |
|
24 |
CONSOLIDATED INCOME STATEMENT ISOLATED QUARTERS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2011 |
|
|
2012 |
|
Isolated quarters, SEK million |
|
Q1 |
|
|
Q2 |
|
|
Q3 |
|
|
Q4 |
|
|
Q1 |
|
|
Q2 |
|
|
Q3 |
|
|
Q4 |
|
Net sales |
|
|
52,966 |
|
|
|
54,770 |
|
|
|
55,518 |
|
|
|
63,667 |
|
|
|
50,974 |
|
|
|
55,319 |
|
|
|
54,550 |
|
|
|
66,936 |
|
Cost of sales |
|
|
-32,578 |
|
|
|
-34,064 |
|
|
|
-36,095 |
|
|
|
-44,463 |
|
|
|
-33,985 |
|
|
|
-37,611 |
|
|
|
-37,970 |
|
|
|
-46,133 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross income |
|
|
20,388 |
|
|
|
20,706 |
|
|
|
19,423 |
|
|
|
19,204 |
|
|
|
16,989 |
|
|
|
17,708 |
|
|
|
16,580 |
|
|
|
20,803 |
|
Gross margin (%) |
|
|
38.5 |
% |
|
|
37.8 |
% |
|
|
35.0 |
% |
|
|
30.2 |
% |
|
|
33.3 |
% |
|
|
32.0 |
% |
|
|
30.4 |
% |
|
|
31.1 |
% |
|
|
|
|
|
|
|
|
|
Research and development expenses |
|
|
-7,991 |
|
|
|
-8,108 |
|
|
|
-7,824 |
|
|
|
-8,715 |
|
|
|
-8,016 |
|
|
|
-8,097 |
|
|
|
-7,473 |
|
|
|
-9,247 |
|
Selling and administrative expenses |
|
|
-6,441 |
|
|
|
-7,741 |
|
|
|
-5,664 |
|
|
|
-6,837 |
|
|
|
-6,232 |
|
|
|
-6,855 |
|
|
|
-5,797 |
|
|
|
-7,139 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
-14,432 |
|
|
|
-15,849 |
|
|
|
-13,488 |
|
|
|
-15,552 |
|
|
|
-14,248 |
|
|
|
-14,952 |
|
|
|
-13,270 |
|
|
|
-16,386 |
|
|
|
|
|
|
|
|
|
|
Other operating income and expenses 1) |
|
|
343 |
|
|
|
166 |
|
|
|
366 |
|
|
|
403 |
|
|
|
7,749 |
|
|
|
530 |
|
|
|
341 |
|
|
|
345 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income before shares in earnings of JV and associated companies |
|
|
6,299 |
|
|
|
5,023 |
|
|
|
6,301 |
|
|
|
4,055 |
|
|
|
10,490 |
|
|
|
3,286 |
|
|
|
3,651 |
|
|
|
4,762 |
|
|
|
|
|
|
|
|
|
|
Operating margin before shares in earnings of JV and associated companies (%) |
|
|
11.9 |
% |
|
|
9.2 |
% |
|
|
11.3 |
% |
|
|
6.4 |
% |
|
|
20.6 |
% |
|
|
5.9 |
% |
|
|
6.7 |
% |
|
|
7.1 |
% |
|
|
|
|
|
|
|
|
|
Shares in earnings of JV and associated companies |
|
|
-468 |
|
|
|
-771 |
|
|
|
-640 |
|
|
|
-1,899 |
|
|
|
-1,403 |
|
|
|
-1,208 |
|
|
|
-555 |
|
|
|
-8,565 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
5,831 |
|
|
|
4,252 |
|
|
|
5,661 |
|
|
|
2,156 |
|
|
|
9,087 |
|
|
|
2,078 |
|
|
|
3,096 |
|
|
|
-3,803 |
|
|
|
|
|
|
|
|
|
|
Financial income |
|
|
302 |
|
|
|
977 |
|
|
|
1,198 |
|
|
|
405 |
|
|
|
262 |
|
|
|
618 |
|
|
|
390 |
|
|
|
438 |
|
Financial expenses |
|
|
-306 |
|
|
|
-636 |
|
|
|
-987 |
|
|
|
-732 |
|
|
|
-273 |
|
|
|
-924 |
|
|
|
-275 |
|
|
|
-512 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income after financial items |
|
|
5,827 |
|
|
|
4,593 |
|
|
|
5,872 |
|
|
|
1,829 |
|
|
|
9,076 |
|
|
|
1,772 |
|
|
|
3,211 |
|
|
|
-3,877 |
|
|
|
|
|
|
|
|
|
|
Taxes |
|
|
-1,747 |
|
|
|
-1,377 |
|
|
|
-2,090 |
|
|
|
-338 |
|
|
|
-272 |
|
|
|
-567 |
|
|
|
-1,027 |
|
|
|
-2,378 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
4,080 |
|
|
|
3,216 |
|
|
|
3,782 |
|
|
|
1,491 |
|
|
|
8,804 |
|
|
|
1,205 |
|
|
|
2,184 |
|
|
|
-6,255 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Stockholders of the Parent Company |
|
|
4,103 |
|
|
|
3,116 |
|
|
|
3,821 |
|
|
|
1,154 |
|
|
|
8,950 |
|
|
|
1,110 |
|
|
|
2,177 |
|
|
|
-6,462 |
|
- Non-controlling interests |
|
|
-23 |
|
|
|
100 |
|
|
|
-39 |
|
|
|
337 |
|
|
|
-146 |
|
|
|
95 |
|
|
|
7 |
|
|
|
207 |
|
|
|
|
|
|
|
|
|
|
Other information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average number of shares, basic (million) |
|
|
3,202 |
|
|
|
3,204 |
|
|
|
3,207 |
|
|
|
3,209 |
|
|
|
3,212 |
|
|
|
3,215 |
|
|
|
3,217 |
|
|
|
3,219 |
|
Earnings per share, basic (SEK) 2) |
|
|
1.28 |
|
|
|
0.97 |
|
|
|
1.19 |
|
|
|
0.36 |
|
|
|
2.79 |
|
|
|
0.35 |
|
|
|
0.68 |
|
|
|
-2.01 |
|
Earnings per share, diluted (SEK) 2) |
|
|
1.27 |
|
|
|
0.96 |
|
|
|
1.18 |
|
|
|
0.36 |
|
|
|
2.76 |
|
|
|
0.34 |
|
|
|
0.67 |
|
|
|
-1.99 |
|
1) |
Includes gain on sale of Sony Ericsson SEK 7.7 b. in Q1 2012 |
2) |
Based on Net income attributable to stockholders of the Parent Company
|
|
|
|
Ericsson Fourth Quarter Report 2012 |
|
25 |
CONSOLIDATED STATEMENT OF CASH FLOWS - ISOLATED QUARTERS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2011 |
|
|
2012 |
|
Isolated quarters, SEK million |
|
Q1 |
|
|
Q2 |
|
|
Q3 |
|
|
Q4 |
|
|
Q1 |
|
|
Q2 |
|
|
Q3 |
|
|
Q4 |
|
Operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
4,080 |
|
|
|
3,216 |
|
|
|
3,782 |
|
|
|
1,491 |
|
|
|
8,804 |
|
|
|
1,205 |
|
|
|
2,184 |
|
|
|
-6,255 |
|
Adjustments to reconcile net income to cash |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxes |
|
|
721 |
|
|
|
-29 |
|
|
|
550 |
|
|
|
752 |
|
|
|
-1,118 |
|
|
|
-1,185 |
|
|
|
-886 |
|
|
|
2,049 |
|
Earnings/dividends in JV and associated companies |
|
|
452 |
|
|
|
783 |
|
|
|
658 |
|
|
|
1,817 |
|
|
|
1,290 |
|
|
|
1,193 |
|
|
|
579 |
|
|
|
8,707 |
|
Depreciation, amortization and impairment losses |
|
|
2,209 |
|
|
|
2,172 |
|
|
|
2,227 |
|
|
|
2,428 |
|
|
|
2,315 |
|
|
|
2,401 |
|
|
|
2,394 |
|
|
|
2,779 |
|
Other |
|
|
-1,201 |
|
|
|
-1,107 |
|
|
|
-291 |
|
|
|
472 |
|
|
|
-7,022 |
|
|
|
-466 |
|
|
|
413 |
|
|
|
-366 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,261 |
|
|
|
5,035 |
|
|
|
6,926 |
|
|
|
6,960 |
|
|
|
4,269 |
|
|
|
3,148 |
|
|
|
4,684 |
|
|
|
6,914 |
|
Changes in operating net assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventories |
|
|
-3,462 |
|
|
|
-2,370 |
|
|
|
-2,619 |
|
|
|
5,208 |
|
|
|
-59 |
|
|
|
43 |
|
|
|
-650 |
|
|
|
3,418 |
|
Customer financing, current and non-current |
|
|
196 |
|
|
|
195 |
|
|
|
-607 |
|
|
|
290 |
|
|
|
282 |
|
|
|
|
|
|
|
-164 |
|
|
|
-1,377 |
|
Trade receivables |
|
|
-1,610 |
|
|
|
2,114 |
|
|
|
-2,769 |
|
|
|
565 |
|
|
|
3,722 |
|
|
|
-5,427 |
|
|
|
2,882 |
|
|
|
-2,280 |
|
Trade payables |
|
|
-255 |
|
|
|
-834 |
|
|
|
-805 |
|
|
|
246 |
|
|
|
-2,713 |
|
|
|
1,717 |
|
|
|
-1,455 |
|
|
|
1,140 |
|
Provisions and post-employment benefits |
|
|
-752 |
|
|
|
-485 |
|
|
|
-2,180 |
|
|
|
-2,278 |
|
|
|
-1,771 |
|
|
|
-353 |
|
|
|
-175 |
|
|
|
379 |
|
Other operating assets and liabilities, net |
|
|
-3,284 |
|
|
|
2,126 |
|
|
|
3,694 |
|
|
|
-5,524 |
|
|
|
-2,999 |
|
|
|
-492 |
|
|
|
1,851 |
|
|
|
7,497 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-9,167 |
|
|
|
746 |
|
|
|
-5,286 |
|
|
|
-1,493 |
|
|
|
-3,538 |
|
|
|
-4,512 |
|
|
|
2,289 |
|
|
|
8,777 |
|
|
|
|
|
|
|
|
|
|
Cash flow from operating activities |
|
|
-2,906 |
|
|
|
5,781 |
|
|
|
1,640 |
|
|
|
5,467 |
|
|
|
731 |
|
|
|
-1,364 |
|
|
|
6,973 |
|
|
|
15,691 |
|
|
|
|
|
|
|
|
|
|
Investing activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments in property, plant and equipment |
|
|
-980 |
|
|
|
-1,196 |
|
|
|
-1,294 |
|
|
|
-1,524 |
|
|
|
-1,648 |
|
|
|
-994 |
|
|
|
-1,461 |
|
|
|
-1,326 |
|
Sales of property, plant and equipment |
|
|
97 |
|
|
|
58 |
|
|
|
59 |
|
|
|
172 |
|
|
|
309 |
|
|
|
-10 |
|
|
|
17 |
|
|
|
252 |
|
Acquisitions/divestments of subsidiaries and other operations, net 1) |
|
|
-455 |
|
|
|
-507 |
|
|
|
-1,931 |
|
|
|
-235 |
|
|
|
-1,730 |
|
|
|
-110 |
|
|
|
-357 |
|
|
|
120 |
|
Product development |
|
|
-269 |
|
|
|
-429 |
|
|
|
-257 |
|
|
|
-560 |
|
|
|
-251 |
|
|
|
-525 |
|
|
|
-435 |
|
|
|
-430 |
|
Other investing activities |
|
|
179 |
|
|
|
-100 |
|
|
|
-769 |
|
|
|
-210 |
|
|
|
195 |
|
|
|
-520 |
|
|
|
1,652 |
|
|
|
213 |
|
Short-term investments |
|
|
3,706 |
|
|
|
3,196 |
|
|
|
9,323 |
|
|
|
-1,533 |
|
|
|
-3,999 |
|
|
|
8,133 |
|
|
|
-938 |
|
|
|
-1,045 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from investing activities |
|
|
2,278 |
|
|
|
1,022 |
|
|
|
5,131 |
|
|
|
-3,890 |
|
|
|
-7,124 |
|
|
|
5,974 |
|
|
|
-1,522 |
|
|
|
-2,216 |
|
|
|
|
|
|
|
|
|
|
Cash flow before financing activities |
|
|
-628 |
|
|
|
6,803 |
|
|
|
6,771 |
|
|
|
1,577 |
|
|
|
-6,393 |
|
|
|
4,610 |
|
|
|
5,451 |
|
|
|
13,475 |
|
|
|
|
|
|
|
|
|
|
Financing activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends paid |
|
|
|
|
|
|
-7,209 |
|
|
|
-241 |
|
|
|
-5 |
|
|
|
|
|
|
|
-8,252 |
|
|
|
-381 |
|
|
|
1 |
|
Other financing activities |
|
|
1,240 |
|
|
|
-1,097 |
|
|
|
-10 |
|
|
|
828 |
|
|
|
-1,318 |
|
|
|
1,112 |
|
|
|
1,062 |
|
|
|
-1,609 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from financing activities |
|
|
1,240 |
|
|
|
-8,306 |
|
|
|
-251 |
|
|
|
823 |
|
|
|
-1,318 |
|
|
|
-7,140 |
|
|
|
681 |
|
|
|
-1,608 |
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash |
|
|
-720 |
|
|
|
211 |
|
|
|
278 |
|
|
|
14 |
|
|
|
-327 |
|
|
|
599 |
|
|
|
-1,994 |
|
|
|
-30 |
|
|
|
|
|
|
|
|
|
|
Net change in cash |
|
|
-108 |
|
|
|
-1,292 |
|
|
|
6,798 |
|
|
|
2,414 |
|
|
|
-8,038 |
|
|
|
-1,931 |
|
|
|
4,138 |
|
|
|
11,837 |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, beginning of period |
|
|
30,864 |
|
|
|
30,756 |
|
|
|
29,464 |
|
|
|
36,262 |
|
|
|
38,676 |
|
|
|
30,638 |
|
|
|
28,707 |
|
|
|
32,845 |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, end of period |
|
|
30,756 |
|
|
|
29,464 |
|
|
|
36,262 |
|
|
|
38,676 |
|
|
|
30,638 |
|
|
|
28,707 |
|
|
|
32,845 |
|
|
|
44,682 |
|
1) |
Includes payment of external loan of SEK -6.2 b. attributable to the acquisition of Telcordia in
Q1 2012 |
|
|
|
Ericsson Fourth Quarter Report 2012 |
|
26 |
Accounting Policies
The Group
This interim report is
prepared in accordance with IAS 34. The term IFRS used in this document refers to the application of IAS and IFRS as well as interpretations of these standards as issued by IASBs Standards Interpretation Committee (SIC) and IFRS
Interpretations Committee, (IFRIC). The accounting policies adopted are consistent with those of the annual report for the year ended December 31, 2011, and should be read in conjunction with that annual report.
As from January 1, 2012, the Company has applied the following new or amended IFRSs and IFRICs:
|
|
|
Amendment to IAS 12 Income taxes: Deferred tax: Recovery of underlying assets |
|
|
|
Amendments to IFRS 7 Financial instruments disclosures: Transfers of financial Assets |
None of the new or amended standards and interpretations has had any significant impact on the financial result or position of the Company. There is no
difference between IFRS effective as per December 31, 2012 and IFRS as endorsed by the EU.
Estimated impact due to amendment of IAS
19 Employee Benefits as from January 1st, 2013
The main amendment of IAS 19 is that the corridor method is
eliminated. The Company implemented on January 1st
2006 the immediate and full recognition of actuarial gains/losses in other comprehensive income (OCI) meaning that the corridor method has not been applied by the Company as from that
date.
Other main amendments of IAS 19 which impact the Company relate to:
- The implementation of the net interest expense/(income), which integrates the interest cost and expected return on assets to be based
on the discount rate used to calculate the defined benefit obligation. An analysis of fiscal year 2012 in relation to this amendment indicates an impact on pension costs for 2012 with an increase of approximately SEK0.4 (-0,1) billion.
- The taxes to be incorporated into the defined benefit obligation and plan assets. This amendment relates to the Swedish special
payroll taxes to be reclassified from other current liabilities to post-employment benefits with an estimated amount of SEK 1.8 (1.8) billion as per 2012-12-31.
|
|
|
Ericsson Fourth Quarter Report 2012 |
|
27 |
NET SALES BY SEGMENT BY QUARTER
Segments Sony Ericsson and ST-Ericsson are reported in accordance with the equity method, thus their sales are not included.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2011 |
|
|
2012 |
|
Isolated quarters, SEK million |
|
Q1 |
|
|
Q2 |
|
|
Q3 |
|
|
Q4 |
|
|
Q1 |
|
|
Q2 |
|
|
Q3 |
|
|
Q4 |
|
Networks |
|
|
33,249 |
|
|
|
33,360 |
|
|
|
32,506 |
|
|
|
33,280 |
|
|
|
27,314 |
|
|
|
27,766 |
|
|
|
26,939 |
|
|
|
35,266 |
|
Global Services |
|
|
17,435 |
|
|
|
19,036 |
|
|
|
20,438 |
|
|
|
26,975 |
|
|
|
20,631 |
|
|
|
24,074 |
|
|
|
24,296 |
|
|
|
28,042 |
|
Of which Professional Services |
|
|
12,571 |
|
|
|
13,463 |
|
|
|
14,719 |
|
|
|
18,081 |
|
|
|
14,884 |
|
|
|
16,947 |
|
|
|
16,388 |
|
|
|
18,873 |
|
Of which Managed Services |
|
|
4,924 |
|
|
|
4,724 |
|
|
|
5,304 |
|
|
|
6,046 |
|
|
|
5,708 |
|
|
|
6,468 |
|
|
|
6,306 |
|
|
|
6,752 |
|
Of which Network Rollout |
|
|
4,864 |
|
|
|
5,573 |
|
|
|
5,719 |
|
|
|
8,894 |
|
|
|
5,747 |
|
|
|
7,127 |
|
|
|
7,908 |
|
|
|
9,169 |
|
Support Solutions |
|
|
2,282 |
|
|
|
2,374 |
|
|
|
2,574 |
|
|
|
3,412 |
|
|
|
3,029 |
|
|
|
3,479 |
|
|
|
3,315 |
|
|
|
3,628 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
52,966 |
|
|
|
54,770 |
|
|
|
55,518 |
|
|
|
63,667 |
|
|
|
50,974 |
|
|
|
55,319 |
|
|
|
54,550 |
|
|
|
66,936 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2011 |
|
|
2012 |
|
Sequential change, percent |
|
Q1 |
|
|
Q2 |
|
|
Q3 |
|
|
Q4 |
|
|
Q1 |
|
|
Q2 |
|
|
Q3 |
|
|
Q4 |
|
Networks |
|
|
-9 |
% |
|
|
0 |
% |
|
|
-3 |
% |
|
|
2 |
% |
|
|
-18 |
% |
|
|
2 |
% |
|
|
-3 |
% |
|
|
31 |
% |
Global Services |
|
|
-24 |
% |
|
|
9 |
% |
|
|
7 |
% |
|
|
32 |
% |
|
|
-24 |
% |
|
|
17 |
% |
|
|
1 |
% |
|
|
15 |
% |
Of which Professional Services |
|
|
-25 |
% |
|
|
7 |
% |
|
|
9 |
% |
|
|
23 |
% |
|
|
-18 |
% |
|
|
14 |
% |
|
|
-3 |
% |
|
|
15 |
% |
Of which Managed Services |
|
|
-8 |
% |
|
|
-4 |
% |
|
|
12 |
% |
|
|
14 |
% |
|
|
-6 |
% |
|
|
13 |
% |
|
|
-3 |
% |
|
|
7 |
% |
Of which Network Rollout |
|
|
-21 |
% |
|
|
15 |
% |
|
|
3 |
% |
|
|
56 |
% |
|
|
-35 |
% |
|
|
24 |
% |
|
|
11 |
% |
|
|
16 |
% |
Support Solutions |
|
|
-34 |
% |
|
|
4 |
% |
|
|
8 |
% |
|
|
33 |
% |
|
|
-11 |
% |
|
|
15 |
% |
|
|
-5 |
% |
|
|
9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
-16 |
% |
|
|
3 |
% |
|
|
1 |
% |
|
|
15 |
% |
|
|
-20 |
% |
|
|
9 |
% |
|
|
-1 |
% |
|
|
23 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2011 |
|
|
2012 |
|
Year over year change, percent |
|
Q1 |
|
|
Q2 |
|
|
Q3 |
|
|
Q4 |
|
|
Q1 |
|
|
Q2 |
|
|
Q3 |
|
|
Q4 |
|
Networks |
|
|
35 |
% |
|
|
31 |
% |
|
|
25 |
% |
|
|
-9 |
% |
|
|
-18 |
% |
|
|
-17 |
% |
|
|
-17 |
% |
|
|
6 |
% |
Global Services |
|
|
-4 |
% |
|
|
-5 |
% |
|
|
7 |
% |
|
|
18 |
% |
|
|
18 |
% |
|
|
26 |
% |
|
|
19 |
% |
|
|
4 |
% |
Of which Professional Services |
|
|
-5 |
% |
|
|
-9 |
% |
|
|
7 |
% |
|
|
8 |
% |
|
|
18 |
% |
|
|
26 |
% |
|
|
11 |
% |
|
|
4 |
% |
Of which Managed Services |
|
|
1 |
% |
|
|
-16 |
% |
|
|
1 |
% |
|
|
13 |
% |
|
|
16 |
% |
|
|
37 |
% |
|
|
19 |
% |
|
|
12 |
% |
Of which Network Rollout |
|
|
0 |
% |
|
|
6 |
% |
|
|
7 |
% |
|
|
44 |
% |
|
|
18 |
% |
|
|
28 |
% |
|
|
38 |
% |
|
|
3 |
% |
Support Solutions |
|
|
-1 |
% |
|
|
-2 |
% |
|
|
11 |
% |
|
|
-2 |
% |
|
|
33 |
% |
|
|
47 |
% |
|
|
29 |
% |
|
|
6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
17 |
% |
|
|
14 |
% |
|
|
17 |
% |
|
|
1 |
% |
|
|
-4 |
% |
|
|
1 |
% |
|
|
-2 |
% |
|
|
5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2011 |
|
|
2012 |
|
Year to date, SEK million |
|
Jan - Mar |
|
|
Jan - Jun |
|
|
Jan - Sep |
|
|
Jan - Dec |
|
|
Jan - Mar |
|
|
Jan - Jun |
|
|
Jan - Sep |
|
|
Jan - Dec |
|
Networks |
|
|
33,249 |
|
|
|
66,609 |
|
|
|
99,115 |
|
|
|
132,395 |
|
|
|
27,314 |
|
|
|
55,080 |
|
|
|
82,019 |
|
|
|
117,285 |
|
Global Services |
|
|
17,435 |
|
|
|
36,471 |
|
|
|
56,909 |
|
|
|
83,884 |
|
|
|
20,631 |
|
|
|
44,705 |
|
|
|
69,001 |
|
|
|
97,043 |
|
Of which Professional Services |
|
|
12,571 |
|
|
|
26,034 |
|
|
|
40,753 |
|
|
|
58,834 |
|
|
|
14,884 |
|
|
|
31,830 |
|
|
|
48,219 |
|
|
|
67,092 |
|
Of which Managed Services |
|
|
4,924 |
|
|
|
9,648 |
|
|
|
14,952 |
|
|
|
20,998 |
|
|
|
5,708 |
|
|
|
12,176 |
|
|
|
18,482 |
|
|
|
25,234 |
|
Of which Network Rollout |
|
|
4,864 |
|
|
|
10,437 |
|
|
|
16,156 |
|
|
|
25,050 |
|
|
|
5,747 |
|
|
|
12,875 |
|
|
|
20,782 |
|
|
|
29,951 |
|
Support Solutions |
|
|
2,282 |
|
|
|
4,656 |
|
|
|
7,230 |
|
|
|
10,642 |
|
|
|
3,029 |
|
|
|
6,508 |
|
|
|
9,823 |
|
|
|
13,451 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
52,966 |
|
|
|
107,736 |
|
|
|
163,254 |
|
|
|
226,921 |
|
|
|
50,974 |
|
|
|
106,293 |
|
|
|
160,843 |
|
|
|
227,779 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year to date, |
|
2011 |
|
|
2012 |
|
year over year change, percent |
|
Jan - Mar |
|
|
Jan - Jun |
|
|
Jan - Sep |
|
|
Jan - Dec |
|
|
Jan - Mar |
|
|
Jan - Jun |
|
|
Jan - Sep |
|
|
Jan - Dec |
|
Networks |
|
|
35 |
% |
|
|
33 |
% |
|
|
30 |
% |
|
|
17 |
% |
|
|
-18 |
% |
|
|
-17 |
% |
|
|
-17 |
% |
|
|
-11 |
% |
Global Services |
|
|
-4 |
% |
|
|
-4 |
% |
|
|
-1 |
% |
|
|
5 |
% |
|
|
18 |
% |
|
|
23 |
% |
|
|
21 |
% |
|
|
16 |
% |
Of which Professional Services |
|
|
-5 |
% |
|
|
-7 |
% |
|
|
-3 |
% |
|
|
1 |
% |
|
|
18 |
% |
|
|
22 |
% |
|
|
18 |
% |
|
|
14 |
% |
Of which Managed Services |
|
|
1 |
% |
|
|
-8 |
% |
|
|
-5 |
% |
|
|
-1 |
% |
|
|
16 |
% |
|
|
26 |
% |
|
|
24 |
% |
|
|
20 |
% |
Of which Network Rollout |
|
|
0 |
% |
|
|
3 |
% |
|
|
5 |
% |
|
|
16 |
% |
|
|
18 |
% |
|
|
23 |
% |
|
|
29 |
% |
|
|
20 |
% |
Support Solutions |
|
|
-1 |
% |
|
|
-2 |
% |
|
|
3 |
% |
|
|
1 |
% |
|
|
33 |
% |
|
|
40 |
% |
|
|
36 |
% |
|
|
26 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
17 |
% |
|
|
16 |
% |
|
|
16 |
% |
|
|
12 |
% |
|
|
-4 |
% |
|
|
-1 |
% |
|
|
-1 |
% |
|
|
0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ericsson Fourth Quarter Report 2012 |
|
28 |
OPERATING INCOME BY SEGMENT BY QUARTER
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2011 |
|
|
2012 |
|
Isolated quarters, SEK million |
|
Q1 |
|
|
Q2 |
|
|
Q3 |
|
|
Q4 |
|
|
Q1 |
|
|
Q2 |
|
|
Q3 |
|
|
Q4 |
|
Networks |
|
|
5,744 |
|
|
|
4,599 |
|
|
|
4,277 |
|
|
|
2,675 |
|
|
|
1,649 |
|
|
|
1,255 |
|
|
|
1,341 |
|
|
|
2,812 |
|
Global Services |
|
|
1,146 |
|
|
|
1,030 |
|
|
|
1,757 |
|
|
|
1,611 |
|
|
|
1,267 |
|
|
|
1,362 |
|
|
|
1,835 |
|
|
|
1,762 |
|
Of which Professional Services |
|
|
1,486 |
|
|
|
1,661 |
|
|
|
2,023 |
|
|
|
2,498 |
|
|
|
1,908 |
|
|
|
2,142 |
|
|
|
2,293 |
|
|
|
2,768 |
|
Of which Network Rollout |
|
|
-340 |
|
|
|
-631 |
|
|
|
-266 |
|
|
|
-887 |
|
|
|
-641 |
|
|
|
-780 |
|
|
|
-458 |
|
|
|
-1,006 |
|
Support Solutions |
|
|
-338 |
|
|
|
-267 |
|
|
|
90 |
|
|
|
11 |
|
|
|
-28 |
|
|
|
420 |
|
|
|
480 |
|
|
|
278 |
|
Unallocated 1) |
|
|
-228 |
|
|
|
-204 |
|
|
|
164 |
|
|
|
-233 |
|
|
|
-97 |
|
|
|
-43 |
|
|
|
6 |
|
|
|
-133 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal Segments excluding Sony Ericsson and ST-Ericsson |
|
|
6,324 |
|
|
|
5,158 |
|
|
|
6,288 |
|
|
|
4,064 |
|
|
|
2,791 |
|
|
|
2,994 |
|
|
|
3,662 |
|
|
|
4,719 |
|
|
|
|
|
|
|
|
|
|
Sony Ericsson 2) |
|
|
71 |
|
|
|
-208 |
|
|
|
75 |
|
|
|
-1,137 |
|
|
|
7,691 |
|
|
|
347 |
|
|
|
-1 |
|
|
|
-11 |
|
ST-Ericsson |
|
|
-564 |
|
|
|
-698 |
|
|
|
-702 |
|
|
|
-771 |
|
|
|
-1,395 |
|
|
|
-1,263 |
|
|
|
-565 |
|
|
|
-8,511 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal Sony Ericsson and ST-Ericsson |
|
|
-493 |
|
|
|
-906 |
|
|
|
-627 |
|
|
|
-1,908 |
|
|
|
6,296 |
|
|
|
-916 |
|
|
|
-566 |
|
|
|
-8,522 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
5,831 |
|
|
|
4,252 |
|
|
|
5,661 |
|
|
|
2,156 |
|
|
|
9,087 |
|
|
|
2,078 |
|
|
|
3,096 |
|
|
|
-3,803 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2011 |
|
|
2012 |
|
Year to date, SEK million |
|
Jan - Mar |
|
|
Jan - Jun |
|
|
Jan - Sep |
|
|
Jan - Dec |
|
|
Jan - Mar |
|
|
Jan - Jun |
|
|
Jan - Sep |
|
|
Jan - Dec |
|
Networks |
|
|
5,744 |
|
|
|
10,343 |
|
|
|
14,620 |
|
|
|
17,295 |
|
|
|
1,649 |
|
|
|
2,904 |
|
|
|
4,245 |
|
|
|
7,057 |
|
Global Services |
|
|
1,146 |
|
|
|
2,176 |
|
|
|
3,933 |
|
|
|
5,544 |
|
|
|
1,267 |
|
|
|
2,629 |
|
|
|
4,464 |
|
|
|
6,226 |
|
Of which Professional Services |
|
|
1,486 |
|
|
|
3,147 |
|
|
|
5,170 |
|
|
|
7,668 |
|
|
|
1,908 |
|
|
|
4,050 |
|
|
|
6,343 |
|
|
|
9,111 |
|
Of which Network Rollout |
|
|
-340 |
|
|
|
-971 |
|
|
|
-1,237 |
|
|
|
-2,124 |
|
|
|
-641 |
|
|
|
-1,421 |
|
|
|
-1,879 |
|
|
|
-2,885 |
|
Support Solutions |
|
|
-338 |
|
|
|
-605 |
|
|
|
-515 |
|
|
|
-504 |
|
|
|
-28 |
|
|
|
392 |
|
|
|
872 |
|
|
|
1,150 |
|
Unallocated 1) |
|
|
-228 |
|
|
|
-432 |
|
|
|
-268 |
|
|
|
-501 |
|
|
|
-97 |
|
|
|
-140 |
|
|
|
-134 |
|
|
|
-267 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal Segments excluding Sony Ericsson and ST-Ericsson |
|
|
6,324 |
|
|
|
11,482 |
|
|
|
17,770 |
|
|
|
21,834 |
|
|
|
2,791 |
|
|
|
5,785 |
|
|
|
9,447 |
|
|
|
14,166 |
|
Sony Ericsson 2) |
|
|
71 |
|
|
|
-137 |
|
|
|
-62 |
|
|
|
-1,199 |
|
|
|
7,691 |
|
|
|
8,038 |
|
|
|
8,037 |
|
|
|
8,026 |
|
ST-Ericsson |
|
|
-564 |
|
|
|
-1,262 |
|
|
|
-1,964 |
|
|
|
-2,735 |
|
|
|
-1,395 |
|
|
|
-2,658 |
|
|
|
-3,223 |
|
|
|
-11,734 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal Sony Ericsson and ST-Ericsson |
|
|
-493 |
|
|
|
-1,399 |
|
|
|
-2,026 |
|
|
|
-3,934 |
|
|
|
6,296 |
|
|
|
5,380 |
|
|
|
4,814 |
|
|
|
-3,708 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
5,831 |
|
|
|
10,083 |
|
|
|
15,744 |
|
|
|
17,900 |
|
|
|
9,087 |
|
|
|
11,165 |
|
|
|
14,261 |
|
|
|
10,458 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING MARGIN BY SEGMENT BY QUARTER |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2011 |
|
|
2012 |
|
As percentage of net sales, isolated quarters |
|
Q1 |
|
|
Q2 |
|
|
Q3 |
|
|
Q4 |
|
|
Q1 |
|
|
Q2 |
|
|
Q3 |
|
|
Q4 |
< |