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
February 5, 2014
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
THIS REPORT ON FORM 6-K SHALL BE DEEMED TO BE INCORPORATED BY REFERENCE IN THE REGISTRATION STATEMENT ON FORM F-3 (NO. 333-180880) OF TELEFONAKTIEBOLAGET LM ERICSSON (PUBL) AND TO BE A PART THEREOF FROM THE DATE ON WHICH THIS REPORT IS FURNISHED TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
TELEFONAKTIEBOLAGET LM ERICSSON (publ) | ||
By: |
/s/ NINA MACPHERSON | |
Nina Macpherson | ||
Senior Vice President and | ||
General Counsel | ||
By: |
/s/ HELENA NORRMAN | |
Helena Norrman | ||
Senior Vice President | ||
Corporate Communications |
Date: February 5, 2014
ERICSSON fourth QUARTER REPORT 2013
This report on Form 6-K shall be deemed to be incorporated by reference in the registration statement on Form F-3 (No. 333-180880) of Telefonaktiebolaget LM Ericsson (publ.) and to be part thereof from the date on which this report is furnished, to the extent not superseded by documents or reports subsequently filed or furnished.
Ericsson fourth quarter and full year report 2013, adjusted for registration statement on Form F-3 (No. 333-180880).
JANUARY 30, 2014
FOURTH QUARTER HIGHLIGHTS
| Sales of SEK 67.0 b., flat YoY. |
| Operating income incl. JV of SEK 9.1 (-3.8) b. with operating margin of 13.5% (-5.7%), including a one-time charge of SEK -0.4 b. related to the acquisition of Airvana |
| Net income SEK 6.4 (-6.3) b. |
| Successfully closed an IPR cross license agreement with Samsung on FRAND terms. Impact on net sales of SEK 4.2 b., on operating income of SEK 4.2 b. and on net income of SEK 3.3 b. included in all numbers. |
| EPS diluted SEK 1.97 (-1.99). |
| Cash flow from operating activities of SEK 14.6 (15.7) b. |
| Segment Modems was consolidated as of October 1, 2013 |
FULL YEAR HIGHLIGHTS
| Sales of SEK 227.4 b., flat YoY. |
| Operating income incl. JV was SEK 17.8 (10.5) b. with an operating margin of 7.8% (4.6%). |
| Net income SEK 12.2 (5.9) b. |
| All numbers include effects of the IPR cross license agreement with Samsung with impact on net sales of SEK 4.2 b., on operating income of SEK 4.2 b. and on net income of SEK 3.3 b. |
| EPS diluted SEK 3.69 (1.78). |
| Cash flow from operating activities of SEK 17.4 (22.0) b. |
| Proposed dividend for 2013 of SEK 3.00 (2.75) per share. |
SEK b. |
Q4 2013 |
Q4 2012 |
YoY Change |
Q3 2013 |
QoQ Change |
Full year 2013 |
Full year 20121) |
Full year Change |
||||||||||||||||||||||||
Net sales |
67.0 | 66.9 | 0 | % | 53.0 | 27 | % | 227.4 | 227.8 | 0 | % | |||||||||||||||||||||
Of which Networks |
34.8 | 35.3 | -1 | % | 26.7 | 30 | % | 117.7 | 117.3 | 0 | % | |||||||||||||||||||||
Of which Global Services |
27.2 | 28.0 | -3 | % | 24.0 | 13 | % | 97.4 | 97.0 | 0 | % | |||||||||||||||||||||
Of which Support Solutions |
5.1 | 3.6 | 41 | % | 2.4 | 117 | % | 12.2 | 13.5 | -9 | % | |||||||||||||||||||||
Of which Modems |
0.0 | | | | | 0.0 | | | ||||||||||||||||||||||||
Gross margin |
37.1 | % | 31.1 | % | | 32.0 | % | | 33.6 | % | 31.6 | % | | |||||||||||||||||||
Operating income excl JV |
9.1 | 4.8 | 90 | % | 4.3 | 112 | % | 18.0 | 22.2 | -19 | % | |||||||||||||||||||||
Operating margin excl JV |
13.5 | % | 7.1 | % | | 8.1 | % | | 7.9 | % | 9.7 | % | | |||||||||||||||||||
Networks |
17 | % | 8 | % | | 10 | % | | 10 | % | 6 | % | | |||||||||||||||||||
Global Services |
8 | % | 6 | % | | 8 | % | | 6 | % | 6 | % | | |||||||||||||||||||
Support Solutions |
37 | % | 8 | % | | -5 | % | | 12 | % | 9 | % | | |||||||||||||||||||
Operating income incl JV |
9.1 | -3.8 | 3) | | 4.2 | 115 | % | 17.8 | 10.5 | 3) | 71 | % | ||||||||||||||||||||
Operating margin incl JV |
13.5 | % | -5.7 | % | | 8.0 | % | | 7.8 | % | 4.6 | % | | |||||||||||||||||||
Net income |
6.4 | -6.3 | 2) | | 3.0 | 114 | % | 12.2 | 5.9 | 3) | 105 | % | ||||||||||||||||||||
EPS diluted, SEK |
1.97 | -1.99 | | 0.90 | 119 | % | 3.69 | 1.78 | 107 | % | ||||||||||||||||||||||
Cash flow from operating activities |
14.6 | 15.7 | -7 | % | 1.5 | | 17.4 | 22.0 | -21 | % | ||||||||||||||||||||||
Net cash3), end of period |
37.8 | 38.5 | -2 | % | 24.7 | 53 | % | 37.8 | 38.5 | -2 | % |
1) | Including gain from divestment of Sony Ericsson of SEK 7.7 b |
2) | Including a charge related to ST-Ericsson of SEK -8.0 b |
3) | Reconciliation of non-IFRS financial measures to the most directly comparable IFRS financial measures can be found on page 37. |
Ericsson Fourth Quarter Report 2013 |
1 |
Comments from Hans Vestberg, President and CEO
Ericsson Fourth Quarter Report 2013 |
2 |
Financial highlights
INCOME STATEMENT
Ericsson Fourth Quarter Report 2013 |
3 |
Ericsson Fourth Quarter Report 2013 |
4 |
Ericsson Fourth Quarter Report 2013 |
5 |
BALANCE SHEET AND OTHER PERFORMANCE INDICATORS FOURTH QUARTER
* | Reconciliation of non-IFRS financial measures to the most directly comparable IFRS financial measures can be found on page 37 |
Ericsson Fourth Quarter Report 2013 |
6 |
* | Reconciliation of non-IFRS financial measures to the most directly comparable IFRS financial measures can be found on page 37 |
Ericsson Fourth Quarter Report 2013 |
7 |
Segment results
NETWORKS
SEK b. |
Q4 2013 |
Q4 2012 |
YoY Change |
Q3 2013 |
QoQ Change |
Full year 2013 |
Full year 2012 |
Change | ||||||||||||||||||||||||
Network sales |
34.8 | 35.3 | -1 | % | 26.7 | 30 | % | 117.7 | 117.3 | 0 | % | |||||||||||||||||||||
Operating income |
5.9 | 2.8 | 108 | % | 2.6 | 129 | % | 11.3 | 7.1 | 60 | % | |||||||||||||||||||||
Operating margin |
17 | % | 8 | % | | 10 | % | | 10 | % | 6 | % | |
Ericsson Fourth Quarter Report 2013 |
8 |
Ericsson Fourth Quarter Report 2013 |
9 |
GLOBAL SERVICES
SEK b. |
Q4 2013 |
Q4 2012 |
YoY Change |
Q3 2013 |
QoQ Change |
Full year 2013 |
Full year 2012 |
Change | ||||||||||||||||||||||||
Global Services sales |
27.2 | 28.0 | -3 | % | 24.0 | 13 | % | 97.4 | 97.0 | 0 | % | |||||||||||||||||||||
Of which Professional Services |
18.8 | 18.9 | -1 | % | 16.2 | 16 | % | 66.4 | 67.1 | -1 | % | |||||||||||||||||||||
Of which Managed Services |
6.6 | 6.8 | -3 | % | 6.3 | 5 | % | 25.5 | 25.2 | 1 | % | |||||||||||||||||||||
Of which Network Rollout |
8.4 | 9.2 | -8 | % | 7.7 | 8 | % | 31.0 | 30.0 | 4 | % | |||||||||||||||||||||
Operating income |
2.1 | 1.8 | 18 | % | 1.8 | 15 | % | 6.2 | 6.2 | -1 | % | |||||||||||||||||||||
Of which Professional Services |
2.6 | 2.8 | -5 | % | 2.3 | 15 | % | 9.0 | 9.1 | -1 | % | |||||||||||||||||||||
Of which Network Rollout |
-0.5 | -1.0 | 46 | % | -0.5 | -15 | % | -2.8 | -2.9 | 1 | % | |||||||||||||||||||||
Operating margin |
8 | % | 6 | % | | 8 | % | | 6 | % | 6 | % | | |||||||||||||||||||
Professional Services |
14 | % | 15 | % | | 14 | % | | 14 | % | 14 | % | | |||||||||||||||||||
Network Rollout |
-6 | % | -11 | % | | -6 | % | | -9 | % | -10 | % | |
FOURTH QUARTER
Ericsson Fourth Quarter Report 2013 |
10 |
FULL YEAR
Other information |
Q4 2013 |
Q3 2013 |
Q2 2013 |
Q1 2013 |
Full year 2013 |
|||||||||||||||
Number of signed Managed Services contracts |
25 | 19 | 19 | 21 | 84 | |||||||||||||||
Of which expansions/extensions |
10 | 8 | 5 | 8 | 31 | |||||||||||||||
Number of signed significant consulting & systems integration contracts1) |
9 | 6 | 8 | 8 | 31 | |||||||||||||||
Number of subscribers in networks managed by Ericsson, end of period2) |
1 b. | 1 b. | 1 b. | ~ 950 m. | 1 b. | |||||||||||||||
Of which in network operations contracts |
600 m. | 600 m. | 600 m. | 550 m. | 600 m. | |||||||||||||||
Number of Ericsson services professionals, end of period |
64,000 | 64,000 | 64,000 | 61,000 | 64,000 |
1) | In the areas of OSS and 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 2013 |
11 |
SUPPORT SOLUTIONS
SEK b. |
Q4 2013 |
Q4 2012 |
YoY Change |
Q3 2013 |
QoQ Change |
Full year 2013 |
Full year 2012 |
Change | ||||||||||||||||||||||||
Support Solutions sales |
5.1 | 3.6 | 41 | % | 2.4 | 117 | % | 12.2 | 13.5 | -9 | % | |||||||||||||||||||||
Operating income |
1.9 | 0.3 | | -0.1 | | 1.5 | 1.2 | 27 | % | |||||||||||||||||||||||
Operating margin |
37 | % | 8 | % | | -5 | % | | 12 | % | 9 | % | |
FOURTH QUARTER
Ericsson Fourth Quarter Report 2013 |
12 |
MODEMS
SEK b. |
Q4 2013 |
Q4 2012 |
YoY Change |
Q3 2013 |
QoQ Change |
Full year 2013 |
Full year 2012 |
Change | ||||||||||||||||||||||||
Modems sales |
0.0 | | | | | 0.0 | | | ||||||||||||||||||||||||
Operating income |
-0.5 | | | | | -0.5 | | | ||||||||||||||||||||||||
Operating margin |
| | | | | | | |
Ericsson Fourth Quarter Report 2013 |
13 |
Regional sales overview
Fourth quarter 2013 | ||||||||||||||||||||||||||||||||
Global | Support | Change | Full year | |||||||||||||||||||||||||||||
SEK b. |
Networks | Services | Solutions | Total | YoY | QoQ | 2013 | Change | ||||||||||||||||||||||||
North America |
5.3 | 7.4 | 1.0 | 13.8 | -19 | % | -5 | % | 59.3 | 5 | % | |||||||||||||||||||||
Latin America |
3.5 | 2.9 | 0.3 | 6.7 | 4 | % | 27 | % | 22.0 | 0 | % | |||||||||||||||||||||
Northern Europe and Central Asia |
2.3 | 1.3 | 0.1 | 3.7 | 23 | % | 25 | % | 11.6 | 2 | % | |||||||||||||||||||||
Western and Central Europe |
2.1 | 2.9 | 0.2 | 5.2 | -4 | % | 19 | % | 18.5 | 6 | % | |||||||||||||||||||||
Mediterranean |
2.9 | 3.9 | 0.3 | 7.1 | 0 | % | 25 | % | 24.2 | 4 | % | |||||||||||||||||||||
Middle East |
3.0 | 2.3 | 0.6 | 5.9 | 17 | % | 35 | % | 17.4 | 12 | % | |||||||||||||||||||||
Sub-Saharan Africa |
1.3 | 1.1 | 0.2 | 2.6 | -28 | % | -4 | % | 10.0 | -11 | % | |||||||||||||||||||||
India |
1.2 | 0.7 | 0.1 | 2.0 | 23 | % | 54 | % | 6.1 | -5 | % | |||||||||||||||||||||
North East Asia |
6.0 | 2.5 | 0.2 | 8.6 | -16 | % | 43 | % | 27.4 | -24 | % | |||||||||||||||||||||
South East Asia and Oceania |
2.4 | 1.7 | 0.2 | 4.3 | -5 | % | 18 | % | 15.8 | 5 | % | |||||||||||||||||||||
Other1) |
4.8 | 0.4 | 2.0 | 7.2 | 141 | % | 226 | % | 15.0 | 22 | % | |||||||||||||||||||||
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Total |
34.8 | 27.2 | 5.1 | 67.0 | 0 | % | 27 | % | 227.4 | 0 | % | |||||||||||||||||||||
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1) | Region Other includes licensing revenues, sales of telecom cables, broadcast services, power modules and other businesses. The acquired Technicolor Broadcast Service Division is reported in region Other. Multimedia brokering (IPX) was part of region Other and divested end Q312. The power cable business was divested in Q313. |
Ericsson Fourth Quarter Report 2013 |
14 |
Ericsson Fourth Quarter Report 2013 |
15 |
Parent company information
Ericsson Fourth Quarter Report 2013 |
16 |
Dividend, AGM and annual report
Ericsson Fourth Quarter Report 2013 |
17 |
Other information
Ericsson Fourth Quarter Report 2013 |
18 |
Assessment of risk environment
Ericsson Fourth Quarter Report 2013 |
19 |
Auditors Review report
Ericsson Fourth Quarter Report 2013 |
20 |
Editors note
Ericsson Fourth Quarter Report 2013 |
21 |
Safe harbor statement
Ericsson Fourth Quarter Report 2013 |
22 |
Financial statements and additional information
Ericsson Fourth Quarter Report 2013 |
23 |
Oct - Dec | Jan - Dec | |||||||||||||||||||||||
SEK million |
2012 | 2013 | Change | 2012 | 2013 | Change | ||||||||||||||||||
Net sales |
66,936 | 67,032 | 0 | % | 227,779 | 227,376 | 0 | % | ||||||||||||||||
Cost of sales |
-46,133 | -42,171 | -9 | % | -155,699 | -151,005 | -3 | % | ||||||||||||||||
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Gross income |
20,803 | 24,861 | 20 | % | 72,080 | 76,371 | 6 | % | ||||||||||||||||
Gross margin (%) |
31.1 | % | 37.1 | % | 31.6 | % | 33.6 | % | ||||||||||||||||
Research and development expenses |
-9,247 | -8,902 | -4 | % | -32,833 | -32,236 | -2 | % | ||||||||||||||||
Selling and administrative expenses |
-7,139 | -7,223 | 1 | % | -26,023 | -26,273 | 1 | % | ||||||||||||||||
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Operating expenses |
-16,386 | -16,125 | -2 | % | -58,856 | -58,509 | -1 | % | ||||||||||||||||
Other operating income and expenses |
345 | 328 | 8,965 | 1) | 113 | |||||||||||||||||||
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Operating income before shares in earnings of JV and associated companies |
4,762 | 9,064 | 90 | % | 22,189 | 17,975 | -19 | % | ||||||||||||||||
Operating margin before shares in earnings of JV and associated companies (%) |
7.1 | % | 13.5 | % | 9.7 | % | 7.9 | % | ||||||||||||||||
Shares in earnings of JV and associated companies |
-8,565 | -9 | -100 | % | -11,731 | -130 | -99 | % | ||||||||||||||||
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Operating income |
-3,803 | 9,055 | 10,458 | 17,845 | 71 | % | ||||||||||||||||||
Financial income |
438 | 184 | 1,708 | 1,346 | ||||||||||||||||||||
Financial expenses |
-512 | -327 | -1,984 | -2,093 | ||||||||||||||||||||
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Income after financial items |
-3,877 | 8,912 | 10,182 | 17,098 | 68 | % | ||||||||||||||||||
Taxes |
-2,378 | -2,468 | -4,244 | -4,924 | ||||||||||||||||||||
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Net income |
-6,255 | 6,444 | 5,938 | 12,174 | 105 | % | ||||||||||||||||||
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Net income attributable to: |
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Stockholders of the Parent Company |
-6,462 | 6,410 | 5,775 | 12,005 | ||||||||||||||||||||
Non-controlling interests |
207 | 34 | 163 | 169 | ||||||||||||||||||||
Other information |
||||||||||||||||||||||||
Average number of shares, basic (million) |
3,219 | 3,230 | 3,216 | 3,226 | ||||||||||||||||||||
Earnings per share, basic (SEK) 2) |
-2.01 | 1.98 | 1.80 | 3.72 | ||||||||||||||||||||
Earnings per share, diluted (SEK) 2) |
-1.99 | 1.97 | 1.78 | 3.69 |
STATEMENT OF COMPREHENSIVE INCOME
Oct - Dec | Jan - Dec | |||||||||||||||
SEK million |
2012 | 2013 | 2012 | 2013 | ||||||||||||
Net income |
-6,255 | 6,444 | 5,938 | 12,174 | ||||||||||||
Other comprehensive income |
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Items that will not be reclassified to profit or loss |
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Remeasurements of defined benefits pension plans incl. asset ceiling |
800 | 983 | -451 | 3,214 | ||||||||||||
Revaluation of other investments in shares and participations |
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Fair value remeasurement |
4 | 1 | 6 | 71 | ||||||||||||
Tax on items that will not be reclassified to profit or loss |
0 | -362 | -59 | -1,235 | ||||||||||||
Items that may be reclassified to profit or loss |
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Cash flow hedges |
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Gains/losses arising during the period |
602 | -14 | 1,668 | 251 | ||||||||||||
Reclassification adjustments for gains/losses included in profit or loss |
-353 | -124 | -568 | -1,072 | ||||||||||||
Adjustments for amounts transferred to initial carrying amount of hedged items |
| 92 | 0 | |||||||||||||
Changes in cumulative translation adjustments |
143 | 777 | -3,947 | -1,687 | ||||||||||||
Share of other comprehensive income on JV and associated companies |
-463 | 32 | -486 | -14 | ||||||||||||
Tax on items that may be reclassified to profit or loss |
-548 | 26 | -363 | 179 | ||||||||||||
Total other comprehensive income, net of tax |
185 | 1,319 | -4,108 | -293 | ||||||||||||
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Total comprehensive income |
-6,070 | 7,763 | 1,830 | 11,881 | ||||||||||||
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Total comprehensive income attributable to: |
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Stockholders of the Parent Company |
-6,284 | 7,704 | 1,716 | 11,712 | ||||||||||||
Non-controlling interests |
214 | 59 | 114 | 169 |
1) | Includes gain on sale of Sony Ericsson SEK 7.7 billion in Q1 2012 |
2) | Based on Net income attributable to stockholders of the Parent Company |
Ericsson Fourth Quarter Report 2013 |
24 |
Dec 31 | Sep 30 | Dec 31 | ||||||||||
SEK million |
2012 | 2013 | 2013 | |||||||||
ASSETS |
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Non-current assets |
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Intangible assets |
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Capitalized development expenses |
3,840 | 3,540 | 3,348 | |||||||||
Goodwill |
30,404 | 31,611 | 31,544 | |||||||||
Intellectual property rights, brands and other intangible assets |
15,202 | 13,319 | 12,815 | |||||||||
Property, plant and equipment |
11,493 | 11,230 | 11,433 | |||||||||
Financial assets |
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Equity in JV and associated companies |
2,842 | 2,675 | 2,568 | |||||||||
Other investments in shares and participations |
386 | 520 | 505 | |||||||||
Customer finance, non-current |
1,290 | 1,052 | 1,294 | |||||||||
Other financial assets, non-current |
3,964 | 4,586 | 5,684 | |||||||||
Deferred tax assets |
12,321 | 11,074 | 9,103 | |||||||||
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81,742 | 79,607 | 78,294 | ||||||||||
Current assets |
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Inventories |
28,802 | 28,089 | 22,759 | |||||||||
Trade receivables |
63,660 | 64,905 | 71,013 | |||||||||
Customer finance, current |
4,019 | 2,191 | 2,094 | |||||||||
Other current receivables |
20,065 | 20,198 | 17,941 | |||||||||
Short-term investments |
32,026 | 25,505 | 34,994 | |||||||||
Cash and cash equivalents |
44,682 | 35,163 | 42,095 | |||||||||
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193,254 | 176,051 | 190,896 | ||||||||||
Total assets |
274,996 | 255,658 | 269,190 | |||||||||
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EQUITY AND LIABILITIES |
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Equity |
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Stockholders equity |
136,883 | 132,382 | 140,204 | |||||||||
Non-controlling interest in equity of subsidiaries |
1,600 | 1,568 | 1,419 | |||||||||
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138,483 | 133,950 | 141,623 | ||||||||||
Non-current liabilities |
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Post-employment benefits 1) |
9,503 | 10,385 | 9,825 | |||||||||
Provisions, non-current |
211 | 268 | 222 | |||||||||
Deferred tax liabilities |
3,120 | 3,050 | 2,650 | |||||||||
Borrowings, non-current |
23,898 | 21,745 | 22,067 | |||||||||
Other non-current liabilities |
2,377 | 2,204 | 1,459 | |||||||||
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39,109 | 37,652 | 36,223 | ||||||||||
Current liabilities |
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Provisions, current |
8,427 | 6,146 | 5,140 | |||||||||
Borrowings, current |
4,769 | 3,849 | 7,388 | |||||||||
Trade payables |
23,100 | 19,237 | 20,502 | |||||||||
Other current liabilities 1) |
61,108 | 54,824 | 58,314 | |||||||||
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97,404 | 84,056 | 91,344 | ||||||||||
Total equity and liabilities |
274,996 | 255,658 | 269,190 | |||||||||
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Of which interest-bearing liabilities and post-employment benefits |
38,170 | 35,979 | 39,280 | |||||||||
Of which net cash 2) |
38,538 | 24,689 | 37,809 | |||||||||
Assets pledged as collateral |
520 | 2,552 | 2,556 | |||||||||
Contingent liabilities |
613 | 606 | 657 |
1) | The provision for the Swedish special payroll taxes, amounting to SEK 1.8 (1.8) billion, which was previously included in Other current liabilities, has been re-classified as pension liability in line with the implementation of IAS19R on January 1, 2013 |
2) | Reconciliations of non-IFRS financial measures to the most directly comparable IFRS financial measures can be found on page 37 |
Ericsson Fourth Quarter Report 2013 |
25 |
CONSOLIDATED STATEMENT OF CASH FLOWS
Oct - Dec | Jan - Dec | |||||||||||||||
SEK million |
2012 | 2013 | 2012 | 2013 | ||||||||||||
Operating activities |
||||||||||||||||
Net income |
-6,255 | 6,444 | 5,938 | 12,174 | ||||||||||||
Adjustments to reconcile net income to cash |
||||||||||||||||
Taxes |
2,049 | 2,096 | -1,140 | -1,323 | ||||||||||||
Earnings/dividends in JV and associated companies |
8,707 | 138 | 11,769 | 258 | ||||||||||||
Depreciation, amortization and impairment losses |
2,779 | 2,744 | 9,889 | 10,137 | ||||||||||||
Other |
-366 | 1,101 | -7,441 | 756 | ||||||||||||
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|
|
|
|
|
|
|
|||||||||
6,914 | 12,523 | 19,015 | 22,002 | |||||||||||||
Changes in operating net assets |
||||||||||||||||
Inventories |
3,418 | 5,337 | 2,752 | 4,868 | ||||||||||||
Customer finance, current and non-current |
-1,377 | -163 | -1,259 | 1,809 | ||||||||||||
Trade receivables |
-2,280 | -4,910 | -1,103 | -8,504 | ||||||||||||
Trade payables |
1,140 | 860 | -1,311 | -2,158 | ||||||||||||
Provisions and post-employment benefits |
379 | -1,731 | -1,920 | -3,298 | ||||||||||||
Other operating assets and liabilities, net |
7,497 | 2,693 | 5,857 | 2,670 | ||||||||||||
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|
|
|
|
|
|
|
|||||||||
8,777 | 2 086 | 3,016 | -4,613 | |||||||||||||
Cash flow from operating activities |
15,691 | 14 609 | 22,031 | 17,389 | ||||||||||||
Investing activities |
||||||||||||||||
Investments in property, plant and equipment |
-1,326 | -1 251 | -5,429 | -4,503 | ||||||||||||
Sales of property, plant and equipment |
252 | 179 | 568 | 378 | ||||||||||||
Acquisitions/divestments of subsidiaries and other operations, net |
120 | -713 | -2,077 | 1) | -2,682 | |||||||||||
Product development |
-430 | -182 | -1,641 | -915 | ||||||||||||
Other investing activities |
213 | -1,195 | 1,540 | -1,330 | ||||||||||||
Short-term investments |
-1,045 | -8 262 | 2,151 | -2,057 | ||||||||||||
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|
|||||||||
Cash flow from investing activities |
-2,216 | -11,424 | -4,888 | -11,109 | ||||||||||||
Cash flow before financing activities |
13,475 | 3 185 | 17,143 | 6,280 | ||||||||||||
Financing activities |
||||||||||||||||
Dividends paid |
1 | -208 | -8,632 | -9,153 | ||||||||||||
Other financing activities |
-1,609 | 3 746 | -753 | -355 | ||||||||||||
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|
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|
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|
|||||||||
Cash flow from financing activities |
-1,608 | 3 538 | -9,385 | -9,508 | ||||||||||||
Effect of exchange rate changes on cash |
-30 | 209 | -1,752 | 641 | ||||||||||||
Net change in cash |
11,837 | 6 932 | 6,006 | -2,587 | ||||||||||||
Cash and cash equivalents, beginning of period |
32,845 | 35 163 | 38,676 | 44,682 | ||||||||||||
Cash and cash equivalents, end of period |
44,682 | 42 095 | 44,682 | 42,095 |
1) | Includes payment of external loan of SEK -6.2 billion attributable to the acquisition of Telcordia in Q1 2012 |
Ericsson Fourth Quarter Report 2013 |
26 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Jan - Dec | Jan - Dec | |||||||
SEK million |
2012 | 2013 | ||||||
Opening balance |
145,270 | 138,483 | ||||||
Total comprehensive income |
1,830 | 11,881 | ||||||
Sale/repurchase of own shares |
-93 | 90 | ||||||
Stock issue |
159 | | ||||||
Stock purchase plan |
405 | 388 | ||||||
Dividends paid |
-8,632 | -9,153 | ||||||
Transactions with non-controlling interests |
-456 | -66 | ||||||
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|
|
|||||
Closing balance |
138,483 | 141,623 | ||||||
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|
Ericsson Fourth Quarter Report 2013 |
27 |
CONSOLIDATED INCOME STATEMENT ISOLATED QUARTERS
2012 | 2013 | |||||||||||||||||||||||||||||||
Isolated quarters, SEK million |
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | ||||||||||||||||||||||||
Net sales |
50,974 | 55,319 | 54,550 | 66,936 | 52,032 | 55,331 | 52,981 | 67,032 | ||||||||||||||||||||||||
Cost of sales |
-33,985 | -37,611 | -37,970 | -46,133 | -35,394 | -37,412 | -36,028 | -42,171 | ||||||||||||||||||||||||
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|||||||||||||||||
Gross income |
16,989 | 17,708 | 16,580 | 20,803 | 16,638 | 17,919 | 16,953 | 24,861 | ||||||||||||||||||||||||
Gross margin (%) |
33.3 | % | 32.0 | % | 30.4 | % | 31.1 | % | 32.0 | % | 32.4 | % | 32.0 | % | 37.1 | % | ||||||||||||||||
Research and development expenses |
-8,016 | -8,097 | -7,473 | -9,247 | -7,877 | -7,747 | -7,710 | -8,902 | ||||||||||||||||||||||||
Selling and administrative expenses |
-6,232 | -6,855 | -5,797 | -7,139 | -6,643 | -6,629 | -5,778 | -7,223 | ||||||||||||||||||||||||
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|
|||||||||||||||||
Operating expenses |
-14,248 | -14,952 | -13,270 | -16,386 | -14,520 | -14,376 | -13,488 | -16,125 | ||||||||||||||||||||||||
Other operating income and expenses |
7,749 | 1) | 530 | 341 | 345 | 20 | -1,040 | 805 | 328 | |||||||||||||||||||||||
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|
|||||||||||||||||
Operating income before shares in earnings of JV and associated companies |
10,490 | 3,286 | 3,651 | 4,762 | 2,138 | 2,503 | 4,270 | 9,064 | ||||||||||||||||||||||||
Operating margin before shares in earnings of JV and associated companies (%) |
20.6 | % | 5.9 | % | 6.7 | % | 7.1 | % | 4.1 | % | 4.5 | % | 8.1 | % | 13.5 | % | ||||||||||||||||
Shares in earnings of JV and associated companies |
-1,403 | -1,208 | -555 | -8,565 | 2) | -32 | -38 | -51 | -9 | |||||||||||||||||||||||
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|
|||||||||||||||||
Operating income |
9,087 | 2,078 | 3,096 | -3,803 | 2,106 | 2,465 | 4,219 | 9,055 | ||||||||||||||||||||||||
Financial income |
262 | 618 | 390 | 438 | 180 | 304 | 678 | 184 | ||||||||||||||||||||||||
Financial expenses |
-273 | -924 | -275 | -512 | -565 | -606 | -595 | -327 | ||||||||||||||||||||||||
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|
|
|||||||||||||||||
Income after financial items |
9,076 | 1,772 | 3,211 | -3,877 | 1,721 | 2,163 | 4,302 | 8,912 | ||||||||||||||||||||||||
Taxes |
-272 | -567 | -1,027 | -2,378 | -517 | -647 | -1,292 | -2,468 | ||||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net income |
8,804 | 1,205 | 2,184 | -6,255 | 1,204 | 1,516 | 3,010 | 6,444 | ||||||||||||||||||||||||
|
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|
|||||||||||||||||
Net income attributable to: |
||||||||||||||||||||||||||||||||
Stockholders of the Parent Company |
8,950 | 1,110 | 2,177 | -6,462 | 1,205 | 1,469 | 2,921 | 6,410 | ||||||||||||||||||||||||
Non-controlling interests |
-146 | 95 | 7 | 207 | -1 | 47 | 89 | 34 | ||||||||||||||||||||||||
Other information |
||||||||||||||||||||||||||||||||
Average number of shares, basic (million) |
3,212 | 3,215 | 3,217 | 3,219 | 3,222 | 3,224 | 3,227 | 3,230 | ||||||||||||||||||||||||
Earnings per share, basic (SEK) 3) |
2.79 | 0.35 | 0.68 | -2.01 | 0.37 | 0.46 | 0.91 | 1.98 | ||||||||||||||||||||||||
Earnings per share, diluted (SEK) 3) |
2.76 | 0.34 | 0.67 | -1.99 | 0.37 | 0.45 | 0.90 | 1.97 |
1) | Includes gain on sale of Sony Ericsson SEK 7.7 billion in Q1 2012 |
2) | Negatively impacted by a non-cash charge related to ST-Ericsson of SEK -8.0 billion in Q4 2012 |
3) | Based on Net income attributable to stockholders of the Parent Company |
Ericsson Fourth Quarter Report 2013 |
28 |
CONSOLIDATED STATEMENT OF CASH FLOWSISOLATED QUARTERS
2012 | 2013 | |||||||||||||||||||||||||||||||
Isolated quarters, SEK million |
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | ||||||||||||||||||||||||
Operating activities |
||||||||||||||||||||||||||||||||
Net income |
8,804 | 1,205 | 2,184 | -6,255 | 1,204 | 1,516 | 3,010 | 6,444 | ||||||||||||||||||||||||
Adjustments to reconcile net income to cash |
||||||||||||||||||||||||||||||||
Taxes |
-1,118 | -1,185 | -886 | 2,049 | -1,849 | -689 | -881 | 2,096 | ||||||||||||||||||||||||
Earnings/dividends in JV and associated companies |
1,290 | 1,193 | 579 | 8,707 | 33 | 37 | 50 | 138 | ||||||||||||||||||||||||
Depreciation, amortization and impairment losses |
2,315 | 2,401 | 2,394 | 2,779 | 2,411 | 2,436 | 2,546 | 2,744 | ||||||||||||||||||||||||
Other |
-7,022 | -466 | 413 | -366 | -201 | 183 | -327 | 1,101 | ||||||||||||||||||||||||
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|
|
|
|
|
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|
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|
|
|
|
|
|
|
|||||||||||||||||
4,269 | 3,148 | 4,684 | 6,914 | 1,598 | 3,483 | 4,398 | 12,523 | |||||||||||||||||||||||||
Changes in operating net assets |
||||||||||||||||||||||||||||||||
Inventories |
-59 | 43 | -650 | 3,418 | -1,426 | 600 | 357 | 5,337 | ||||||||||||||||||||||||
Customer finance, current and non-current |
282 | | -164 | -1,377 | 260 | 912 | 800 | -163 | ||||||||||||||||||||||||
Trade receivables |
3,722 | -5,427 | 2,882 | -2,280 | -1,934 | 3,084 | -4,744 | -4,910 | ||||||||||||||||||||||||
Trade payables |
-2,713 | 1,717 | -1,455 | 1,140 | -2,948 | 518 | -588 | 860 | ||||||||||||||||||||||||
Provisions and post-employment benefits |
-1,771 | -353 | -175 | 379 | 1,155 | -1,752 | -970 | -1,731 | ||||||||||||||||||||||||
Other operating assets and liabilities, net |
-2,999 | -492 | 1,851 | 7,497 | 325 | -2,554 | 2,206 | 2,693 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
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|
|
|
|
|
|||||||||||||||||
-3,538 | -4,512 | 2,289 | 8,777 | -4,568 | 808 | -2,939 | 2,086 | |||||||||||||||||||||||||
Cash flow from operating activities |
731 | -1,364 | 6,973 | 15,691 | -2,970 | 4,291 | 1,459 | 14,609 | ||||||||||||||||||||||||
Investing activities |
||||||||||||||||||||||||||||||||
Investments in property, plant and equipment |
-1,648 | -994 | -1,461 | -1,326 | -1,196 | -1,278 | -778 | -1,251 | ||||||||||||||||||||||||
Sales of property, plant and equipment |
309 | -10 | 17 | 252 | 91 | 11 | 97 | 179 | ||||||||||||||||||||||||
Acquisitions/divestments of subsidiaries and other operations, net |
-1,730 | 1) | -110 | -357 | 120 | -136 | -39 | -1,794 | -713 | |||||||||||||||||||||||
Product development |
-251 | -525 | -435 | -430 | -282 | -214 | -237 | -182 | ||||||||||||||||||||||||
Other investing activities |
195 | -520 | 1,652 | 213 | 298 | -203 | -230 | -1,195 | ||||||||||||||||||||||||
Short-term investments |
-3,999 | 8,133 | -938 | -1,045 | -2,860 | 9,209 | -144 | -8,262 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Cash flow from investing activities |
-7,124 | 5,974 | -1,522 | -2,216 | -4,085 | 7,486 | -3,086 | -11,424 | ||||||||||||||||||||||||
Cash flow before financing activities |
-6,393 | 4,610 | 5,451 | 13,475 | -7,055 | 11,777 | -1,627 | 3,185 | ||||||||||||||||||||||||
Financing activities |
||||||||||||||||||||||||||||||||
Dividends paid |
| -8,252 | -381 | 1 | -61 | -8,863 | -21 | -208 | ||||||||||||||||||||||||
Other financing activities |
-1,318 | 1,112 | 1,062 | -1,609 | 92 | -4,236 | 43 | 3,746 | ||||||||||||||||||||||||
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|
|||||||||||||||||
Cash flow from financing activities |
-1,318 | -7,140 | 681 | -1,608 | 31 | -13,099 | 22 | 3,538 | ||||||||||||||||||||||||
Effect of exchange rate changes on cash |
-327 | 599 | -1,994 | -30 | -214 | 2,357 | -1,711 | 209 | ||||||||||||||||||||||||
Net change in cash |
-8,038 | -1,931 | 4,138 | 11,837 | -7,238 | 1,035 | -3,316 | 6,932 | ||||||||||||||||||||||||
Cash and cash equivalents, beginning of period |
38,676 | 30,638 | 28,707 | 32,845 | 44,682 | 37,444 | 38,479 | 35,163 | ||||||||||||||||||||||||
Cash and cash equivalents, end of period |
30,638 | 28,707 | 32,845 | 44,682 | 37,444 | 38,479 | 35,163 | 42,095 |
1) | Includes payment of external loan of SEK -6.2 billion attributable to the acquisition of Telcordia in Q1 2012 |
Ericsson Fourth Quarter Report 2013 |
29 |
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, 2012, and should be read in conjunction with that annual report.
Change of hedge accounting
Due to cost efficiency reasons Ericsson has changed the hedge accounting.
Ericsson hedges highly probable forecast transactions related to sales and purchases with the purpose to limit the impact related to currency fluctuations on these forecasted transactions. This will not be changed.
Ericsson has, however, decided to discontinue hedge accounting for this type of hedges. Until 2012 Ericsson applied cash flow hedge accounting for highly probable forecast transactions. Revaluation of these hedges (incepted prior to January 1, 2013) are prior to release reported under Other comprehensive income, (OCI), and is at release recycled to sales, cost of sales and R&D expenses respectively.
As from 2013, revaluation of new hedges (inception as from January 1, 2013) are reported under Other operating income and expenses in the Income statement.
As from January 1, 2013, the Company has applied the following new or amended IFRSs and IFRICs:
Amendment to IAS 1, Financial statement presentation, regarding Other comprehensive income. The main change resulting from this amendment is a requirement for entities to group items presented in other comprehensive income, (OCI), on the basis of whether they are potentially recycled to profit or loss subsequently (reclassification adjustments). The amendment does not address which items are presented in OCI.
Amendment to IAS 19, Employee benefits, eliminates the corridor approach and calculates finance costs on a net funding basis. The Company implemented the immediate and full recognition of actuarial gains/losses in other Other comprehensive income, (OCI), in 2006, meaning that the corridor method has not been applied by the Company as from that date and therefore the transition to the revised IAS 19 has not had an effect on the present obligation. The main issue to address is the implementation of the net interest cost/gain, which integrates the interest cost and expected return on assets to be based on a common discount rate. An analysis of fiscal year 2012 in relation to this amendment indicated an impact on pension costs for 2012 with an increase of approximately SEK 0.4 (0.1) billion. The Company also needs to address the taxes to be incorporated into the defined benefit obligation. 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 December 31, 2012 *. The amendment also includes additional disclosure requirements on yearly financial and demographic assumptions, sensitivity analysis, duration and multi-employer plans.
Amendment to IFRS 7, Financial instruments: Disclosures on asset and liability offsetting. This amendment requires disclosure of gross amounts related to financial instruments for which offset has been made.
* | See also footnote under the balance sheet. |
Ericsson Fourth Quarter Report 2013 |
30 |
Accounting policies (continued)
IFRS 10, Consolidated financial statements. The objective of IFRS 10 is to establish principles for the presentation and preparation of consolidated financial statements when an entity controls one or more other entities to present consolidated financial statements. It defines the principle of control, and establishes control as the basis for consolidation. It sets out how to apply the principle of control to identify whether an investor controls an investee and therefore must consolidate the investee. An entity controls an investee if the entity has power over the investee, has the ability to use the power and is exposed to variable returns. It also sets out the accounting requirements for the preparation of consolidated financial statements.
IFRS 11, Joint arrangements, is a more realistic reflection of joint arrangements by focusing on the rights and obligations of the arrangement rather than its legal form. There are two types of joint arrangement: joint operations and joint ventures. Proportional consolidation of joint ventures is no longer allowed. The Company did not apply the proportionate consolidation method prior to 2013.
IFRS 12, Disclosures of interests in other entities, includes the disclosure requirements for all forms of interests in other entities, including joint arrangements, associates, structured entities and other off-balance sheet vehicles.
IFRS 13, Fair value measurement, does not extend the use of fair value accounting but provide guidance on how it should be applied where its use is already required or permitted by other standards within IFRS. This standard has also added disclosure requirements in IAS 34, Interim Financial Reporting regarding the disclosure for financial instruments.
IAS 27 (revised 2011), Separate financial statements includes the provisions on separate financial statements that are left after the control provisions of IAS 27 have been included in the new IFRS 10.
IAS 28 (revised 2011), Associates and joint ventures includes the requirements for joint ventures, as well as associates, to be equity accounted following the issue of IFRS 11.
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 significant difference between IFRS effective as per December 31, 2013 and IFRS as endorsed by the EU.
Disclosures required by the IASB on an interim basis as from 2013
Financial instruments carried at fair value
The fair value of the Companys financial instruments, recognized at fair value, is determined based on quoted market prices or rates. Financial instruments, measured according to the category Fair value through profit or loss showed a net fair value measurement positive effect of SEK 1.2 billion. The amount is recognized in the balance sheet as per December 31, 2013.
Financial instruments carried at other than fair value
Book value for Notes and bond loans amounts to SEK 14.5 billion and fair value to SEK 14.7 billion. Fair values of Current part of non-current borrowings, Other borrowings non-current as well as Other financial instruments are not estimated to materially differ from book values.
For further information about valuation principles, please see Note C1, Significant accounting policies in the Annual Report of 2012.
Ericsson Fourth Quarter Report 2013 | 31 |
NET SALES BY SEGMENT BY QUARTER
Segment ST-Ericsson was reported in 2012 in accordance with the equity method, thus no sales is included.
Segment Modems was consolidated as of October 1, 2013. No sales was reported in Q4, 2013.
2012 | 2013 | |||||||||||||||||||||||||||||||
Isolated quarters, SEK million |
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | ||||||||||||||||||||||||
Networks |
27,314 | 27,766 | 26,939 | 35,266 | 28,133 | 28,142 | 26,655 | 34,769 | ||||||||||||||||||||||||
Global Services |
20,631 | 24,074 | 24,296 | 28,042 | 21,452 | 24,851 | 23,974 | 27,166 | ||||||||||||||||||||||||
Of which Professional Services |
14,884 | 16,947 | 16,388 | 18,873 | 14,626 | 16,773 | 16,229 | 18,767 | ||||||||||||||||||||||||
Of which Managed Services |
5,708 | 6,468 | 6,306 | 6,752 | 5,888 | 6,754 | 6,264 | 6,574 | ||||||||||||||||||||||||
Of which Network Rollout |
5,747 | 7,127 | 7,908 | 9,169 | 6,826 | 8,078 | 7,745 | 8,399 | ||||||||||||||||||||||||
Support Solutions |
3,029 | 3,479 | 3,315 | 3,628 | 2,447 | 2,338 | 2,352 | 5,097 | ||||||||||||||||||||||||
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|
|
|||||||||||||||||
Total |
50,974 | 55,319 | 54,550 | 66,936 | 52,032 | 55,331 | 52,981 | 67,032 | ||||||||||||||||||||||||
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|||||||||||||||||
2012 | 2013 | |||||||||||||||||||||||||||||||
Sequential change, percent |
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | ||||||||||||||||||||||||
Networks |
-18 | % | 2 | % | -3 | % | 31 | % | -20 | % | 0 | % | -5 | % | 30 | % | ||||||||||||||||
Global Services |
-24 | % | 17 | % | 1 | % | 15 | % | -24 | % | 16 | % | -4 | % | 13 | % | ||||||||||||||||
Of which Professional Services |
-18 | % | 14 | % | -3 | % | 15 | % | -23 | % | 15 | % | -3 | % | 16 | % | ||||||||||||||||
Of which Managed Services |
-6 | % | 13 | % | -3 | % | 7 | % | -13 | % | 15 | % | -7 | % | 5 | % | ||||||||||||||||
Of which Network Rollout |
-35 | % | 24 | % | 11 | % | 16 | % | -26 | % | 18 | % | -4 | % | 8 | % | ||||||||||||||||
Support Solutions |
-11 | % | 15 | % | -5 | % | 9 | % | -33 | % | -4 | % | 1 | % | 117 | % | ||||||||||||||||
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|||||||||||||||||
Total |
-20 | % | 9 | % | -1 | % | 23 | % | -22 | % | 6 | % | -4 | % | 27 | % | ||||||||||||||||
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|||||||||||||||||
2012 | 2013 | |||||||||||||||||||||||||||||||
Year over year change, percent |
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | ||||||||||||||||||||||||
Networks |
-18 | % | -17 | % | -17 | % | 6 | % | 3 | % | 1 | % | -1 | % | -1 | % | ||||||||||||||||
Global Services |
18 | % | 26 | % | 19 | % | 4 | % | 4 | % | 3 | % | -1 | % | -3 | % | ||||||||||||||||
Of which Professional Services |
18 | % | 26 | % | 11 | % | 4 | % | -2 | % | -1 | % | -1 | % | -1 | % | ||||||||||||||||
Of which Managed Services |
16 | % | 37 | % | 19 | % | 12 | % | 3 | % | 4 | % | -1 | % | -3 | % | ||||||||||||||||
Of which Network Rollout |
18 | % | 28 | % | 38 | % | 3 | % | 19 | % | 13 | % | -2 | % | -8 | % | ||||||||||||||||
Support Solutions |
33 | % | 47 | % | 29 | % | 6 | % | -19 | % | -33 | % | -29 | % | 40 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
-4 | % | 1 | % | -2 | % | 5 | % | 2 | % | 0 | % | -3 | % | 0 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
2012 | 2013 | |||||||||||||||||||||||||||||||
Year to date, SEK million |
Jan - Mar | Jan - Jun | Jan - Sep | Jan - Dec | Jan - Mar | Jan - Jun | Jan - Sep | Jan - Dec | ||||||||||||||||||||||||
Networks |
27,314 | 55,080 | 82,019 | 117,285 | 28,133 | 56,275 | 82,930 | 117,699 | ||||||||||||||||||||||||
Global Services |
20,631 | 44,705 | 69,001 | 97,043 | 21,452 | 46,303 | 70,277 | 97,443 | ||||||||||||||||||||||||
Of which Professional Services |
14,884 | 31,830 | 48,219 | 67,092 | 14,626 | 31,399 | 47,628 | 66,395 | ||||||||||||||||||||||||
Of which Managed Services |
5,708 | 12,176 | 18,482 | 25,234 | 5,888 | 12,642 | 18,906 | 25,480 | ||||||||||||||||||||||||
Of which Network Rollout |
5,747 | 12,875 | 20,782 | 29,951 | 6,826 | 14,904 | 22,649 | 31,048 | ||||||||||||||||||||||||
Support Solutions |
3,029 | 6,508 | 9,823 | 13,451 | 2,447 | 4,785 | 7,137 | 12,234 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
50,974 | 106,293 | 160,843 | 227,779 | 52,032 | 107,363 | 160,344 | 227,376 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Year to date, | 2012 | 2013 | ||||||||||||||||||||||||||||||
year over year change, percent |
Jan - Mar | Jan - Jun | Jan - Sep | Jan - Dec | Jan - Mar | Jan - Jun | Jan - Sep | Jan - Dec | ||||||||||||||||||||||||
Networks |
-18 | % | -17 | % | -17 | % | -11 | % | 3 | % | 2 | % | 1 | % | 0 | % | ||||||||||||||||
Global Services |
18 | % | 23 | % | 21 | % | 16 | % | 4 | % | 4 | % | 2 | % | 0 | % | ||||||||||||||||
Of which Professional Services |
18 | % | 22 | % | 18 | % | 14 | % | -2 | % | -1 | % | -1 | % | -1 | % | ||||||||||||||||
Of which Managed Services |
16 | % | 26 | % | 24 | % | 20 | % | 3 | % | 4 | % | 2 | % | 1 | % | ||||||||||||||||
Of which Network Rollout |
18 | % | 23 | % | 29 | % | 20 | % | 19 | % | 16 | % | 9 | % | 4 | % | ||||||||||||||||
Support Solutions |
33 | % | 40 | % | 36 | % | 26 | % | -19 | % | -26 | % | -27 | % | -9 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
-4 | % | -1 | % | -1 | % | 0 | % | 2 | % | 1 | % | 0 | % | 0 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ericsson Fourth Quarter Report 2013 |
32 |
OPERATING INCOME BY SEGMENT BY QUARTER
2012 | 2013 | |||||||||||||||||||||||||||||||
Isolated quarters, SEK million |
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | ||||||||||||||||||||||||
Networks |
1,649 | 1,255 | 1,341 | 2,812 | 1,565 | 1,335 | 2,557 | 5,861 | ||||||||||||||||||||||||
Global Services |
1,267 | 1,362 | 1,835 | 1,762 | 726 | 1,564 | 1,808 | 2,087 | ||||||||||||||||||||||||
Of which Professional Services |
1,908 | 2,142 | 2,293 | 2,768 | 1,837 | 2,285 | 2,279 | 2,628 | ||||||||||||||||||||||||
Of which Network Rollout |
-641 | -780 | -458 | -1,006 | -1,111 | -721 | -471 | -541 | ||||||||||||||||||||||||
Support Solutions |
-28 | 420 | 480 | 278 | -29 | -283 | -113 | 1,880 | ||||||||||||||||||||||||
Modems |
| | | | | | | -543 | ||||||||||||||||||||||||
Unallocated 1) |
-97 | -43 | 6 | -133 | -156 | -151 | -33 | -230 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Subtotal Segments excluding Sony Ericsson and ST-Ericsson |
2,791 | 2,994 | 3,662 | 4,719 | 2,106 | 2,465 | 4,219 | 9,055 | ||||||||||||||||||||||||
Sony Ericsson |
7,691 | 2) | 347 | -1 | -11 | | | | | |||||||||||||||||||||||
ST-Ericsson |
-1,395 | -1,263 | -565 | -8,511 | 3) | | | | | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Subtotal Sony Ericsson and ST-Ericsson |
6,296 | -916 | -566 | -8,522 | | | | | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
9,087 | 2,078 | 3,096 | -3,803 | 2,106 | 2,465 | 4,219 | 9,055 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
2012 | 2013 | |||||||||||||||||||||||||||||||
Year to date, SEK million |
Jan -Mar | Jan -Jun | Jan -Sep | Jan -Dec | Jan -Mar | Jan -Jun | Jan -Sep | Jan -Dec | ||||||||||||||||||||||||
Networks |
1,649 | 2,904 | 4,245 | 7,057 | 1,565 | 2,900 | 5,457 | 11,318 | ||||||||||||||||||||||||
Global Services |
1,267 | 2,629 | 4,464 | 6,226 | 726 | 2,290 | 4,098 | 6,185 | ||||||||||||||||||||||||
Of which Professional Services |
1,908 | 4,050 | 6,343 | 9,111 | 1,837 | 4,122 | 6,401 | 9,029 | ||||||||||||||||||||||||
Of which Network Rollout |
-641 | -1,421 | -1,879 | -2,885 | -1,111 | -1,832 | -2,303 | -2,844 | ||||||||||||||||||||||||
Support Solutions |
-28 | 392 | 872 | 1,150 | -29 | -312 | -425 | 1,455 | ||||||||||||||||||||||||
Modems |
| | | | | | | -543 | ||||||||||||||||||||||||
Unallocated 1) |
-97 | -140 | -134 | -267 | -156 | -307 | -340 | -570 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Subtotal Segments excluding Sony Ericsson and ST-Ericsson |
2,791 | 5,785 | 9,447 | 14,166 | 2,106 | 4,571 | 8,790 | 17,845 | ||||||||||||||||||||||||
Sony Ericsson |
7,691 | 2) | 8,038 | 8,037 | 8,026 | | | | | |||||||||||||||||||||||
ST-Ericsson |
-1,395 | -2,658 | -3,223 | -11,734 | 3) | | | | | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Subtotal Sony Ericsson and ST-Ericsson |
6,296 | 5,380 | 4,814 | -3,708 | | | | | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
9,087 | 11,165 | 14,261 | 10,458 | 2,106 | 4,571 | 8,790 | 17,845 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING MARGIN BY SEGMENT BY QUARTER
As percentage of net sales, | 2012 | 2013 | ||||||||||||||||||||||||||||||
isolated quarters |
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | ||||||||||||||||||||||||
Networks |
6 | % | 5 | % | 5 | % | 8 | % | 6 | % | 5 | % | 10 | % | 17 | % | ||||||||||||||||
Global Services |
6 | % | 6 | % | 8 | % | 6 | % | 3 | % | 6 | % | 8 | % | 8 | % | ||||||||||||||||
Of which Professional Services |
13 | % | 13 | % | 14 | % | 15 | % | 13 | % | 14 | % | 14 | % | 14 | % | ||||||||||||||||
Of which Network Rollout |
-11 | % | -11 | % | -6 | % | -11 | % | -16 | % | -9 | % | -6 | % | -6 | % | ||||||||||||||||
Support Solutions |
-1 | % | 12 | % | 14 | % | 8 | % | -1 | % | -12 | % | -5 | % | 37 | % | ||||||||||||||||
Modems |
| | | | | | | | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Subtotal excluding Sony Ericsson and ST-Ericsson |
5 | % | 5 | % | 7 | % | 7 | % | 4 | % | 4 | % | 8 | % | 14 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
As percentage of net sales, | 2012 | 2013 | ||||||||||||||||||||||||||||||
Year to date |
Jan - Mar | Jan - Jun | Jan - Sep | Jan - Dec | Jan - Mar | Jan - Jun | Jan - Sep | Jan - Dec | ||||||||||||||||||||||||
Networks |
6 | % | 5 | % | 5 | % | 6 | % | 6 | % | 5 | % | 7 | % | 10 | % | ||||||||||||||||
Global Services |
6 | % | 6 | % | 6 | % | 6 | % | 3 | % | 5 | % | 6 | % | 6 | % | ||||||||||||||||
Of which Professional Services |
13 | % | 13 | % | 13 | % | 14 | % | 13 | % | 13 | % | 13 | % | 14 | % | ||||||||||||||||
Of which Network Rollout |
-11 | % | -11 | % | -9 | % | -10 | % | -16 | % | -12 | % | -10 | % | -9 | % | ||||||||||||||||
Support Solutions |
-1 | % | 6 | % | 9 | % | 9 | % | -1 | % | -7 | % | -6 | % | 12 | % | ||||||||||||||||
Modems |
| | | | | | | | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Subtotal excluding Sony Ericsson and ST-Ericsson |
5 | % | 5 | % | 6 | % | 6 | % | 4 | % | 4 | % | 5 | % | 8 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1) | Unallocated consists mainly of costs for corporate staff, non-operational capital gains and losses |
2) | Includes gain on sale of Sony Ericsson SEK 7.7 billion in Q1 2012 |
3) | Negatively impacted by a non-cash charge related to ST-Ericsson of SEK -8.0 billion in Q4 2012 |
Ericsson Fourth Quarter Report 2013 |
33 |
NET SALES BY REGION BY QUARTER
2012 | 2013 | |||||||||||||||||||||||||||||||
Isolated quarters, SEK million |
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | ||||||||||||||||||||||||
North America |
12,775 | 12,987 | 14,037 | 16,950 | 15,773 | 15,341 | 14,453 | 13,772 | ||||||||||||||||||||||||
Latin America |
4,822 | 5,243 | 5,424 | 6,517 | 4,374 | 5,565 | 5,294 | 6,749 | ||||||||||||||||||||||||
Northern Europe & Central Asia 1) 2) |
2,292 | 3,358 | 2,697 | 2,998 | 2,283 | 2,708 | 2,949 | 3,678 | ||||||||||||||||||||||||
Western & Central Europe 2) |
4,306 | 4,094 | 3,630 | 5,448 | 4,349 | 4,522 | 4,399 | 5,215 | ||||||||||||||||||||||||
Mediterranean 2) |
4,620 | 6,214 | 5,401 | 7,064 | 5,271 | 6,159 | 5,659 | 7,067 | ||||||||||||||||||||||||
Middle East |
3,157 | 3,701 | 3,637 | 5,061 | 3,160 | 3,978 | 4,386 | 5,914 | ||||||||||||||||||||||||
Sub Saharan Africa |
2,200 | 2,791 | 2,800 | 3,558 | 2,131 | 2,653 | 2,693 | 2,572 | ||||||||||||||||||||||||
India |
1,421 | 1,700 | 1,737 | 1,602 | 1,606 | 1,279 | 1,280 | 1,973 | ||||||||||||||||||||||||
North East Asia |
9,154 | 8,423 | 8,373 | 10,246 | 6,054 | 6,642 | 6,053 | 8,649 | ||||||||||||||||||||||||
South East Asia & Oceania |
3,374 | 3,674 | 3,505 | 4,515 | 4,129 | 3,758 | 3,617 | 4,283 | ||||||||||||||||||||||||
Other 1) 2) |
2,853 | 3,134 | 3,309 | 2,977 | 2,902 | 2,726 | 2,198 | 7,160 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
50,974 | 55,319 | 54,550 | 66,936 | 52,032 | 55,331 | 52,981 | 67,032 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
1) Of which in Sweden |
834 | 1,282 | 1,649 | 1,268 | 1,020 | 1,276 | 798 | 1,333 | ||||||||||||||||||||||||
2) Of which in EU |
9,502 | 11,201 | 10,604 | 12,923 | 9,782 | 10,816 | 10,111 | 12,835 | ||||||||||||||||||||||||
2012 | 2013 | |||||||||||||||||||||||||||||||
Sequential change, percent |
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | ||||||||||||||||||||||||
North America |
14 | % | 2 | % | 8 | % | 21 | % | -7 | % | -3 | % | -6 | % | -5 | % | ||||||||||||||||
Latin America |
-31 | % | 9 | % | 3 | % | 20 | % | -33 | % | 27 | % | -5 | % | 27 | % | ||||||||||||||||
Northern Europe & Central Asia 1) 2) |
-39 | % | 47 | % | -20 | % | 11 | % | -24 | % | 19 | % | 9 | % | 25 | % | ||||||||||||||||
Western & Central Europe 2) |
-18 | % | -5 | % | -11 | % | 50 | % | -20 | % | 4 | % | -3 | % | 19 | % | ||||||||||||||||
Mediterranean 2) |
-44 | % | 35 | % | -13 | % | 31 | % | -25 | % | 17 | % | -8 | % | 25 | % | ||||||||||||||||
Middle East |
-39 | % | 17 | % | -2 | % | 39 | % | -38 | % | 26 | % | 10 | % | 35 | % | ||||||||||||||||
Sub Saharan Africa |
-32 | % | 27 | % | 0 | % | 27 | % | -40 | % | 24 | % | 2 | % | -4 | % | ||||||||||||||||
India |
-7 | % | 20 | % | 2 | % | -8 | % | 0 | % | -20 | % | 0 | % | 54 | % | ||||||||||||||||
North East Asia |
-16 | % | -8 | % | -1 | % | 22 | % | -41 | % | 10 | % | -9 | % | 43 | % | ||||||||||||||||
South East Asia & Oceania |
-16 | % | 9 | % | -5 | % | 29 | % | -9 | % | -9 | % | -4 | % | 18 | % | ||||||||||||||||
Other 1) 2) |
-14 | % | 10 | % | 6 | % | -10 | % | -3 | % | -6 | % | -19 | % | 226 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
-20 | % | 9 | % | -1 | % | 23 | % | -22 | % | 6 | % | -4 | % | 27 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
1) Of which in Sweden |
-8 | % | 54 | % | 29 | % | -23 | % | -20 | % | 25 | % | -37 | % | 67 | % | ||||||||||||||||
2) Of which in EU |
-29 | % | 18 | % | -5 | % | 22 | % | -24 | % | 11 | % | -7 | % | 27 | % | ||||||||||||||||
2012 | 2013 | |||||||||||||||||||||||||||||||
Year-over-year change, percent |
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | ||||||||||||||||||||||||
North America |
-3 | % | 5 | % | 16 | % | 51 | % | 23 | % | 18 | % | 3 | % | -19 | % | ||||||||||||||||
Latin America |
20 | % | 6 | % | -10 | % | -7 | % | -9 | % | 6 | % | -2 | % | 4 | % | ||||||||||||||||
Northern Europe & Central Asia 1) 2) |
-32 | % | -26 | % | -24 | % | -21 | % | 0 | % | -19 | % | 9 | % | 23 | % | ||||||||||||||||
Western & Central Europe 2) |
-10 | % | -6 | % | -21 | % | 3 | % | 1 | % | 10 | % | 21 | % | -4 | % | ||||||||||||||||
Mediterranean 2) |
-4 | % | 12 | % | 3 | % | -14 | % | 14 | % | -1 | % | 5 | % | 0 | % | ||||||||||||||||
Middle East |
3 | % | 4 | % | 0 | % | -3 | % | 0 | % | 7 | % | 21 | % | 17 | % | ||||||||||||||||
Sub Saharan Africa |
-1 | % | 26 | % | 11 | % | 11 | % | -3 | % | -5 | % | -4 | % | -28 | % | ||||||||||||||||
India |
-55 | % | -39 | % | -24 | % | 5 | % | 13 | % | -25 | % | -26 | % | 23 | % | ||||||||||||||||
North East Asia |
6 | % | -7 | % | -13 | % | -6 | % | -34 | % | -21 | % | -28 | % | -16 | % | ||||||||||||||||
South East Asia & Oceania |
9 | % | 21 | % | -6 | % | 13 | % | 22 | % | 2 | % | 3 | % | -5 | % | ||||||||||||||||
Other 1) 2) |
9 | % | 27 | % | 49 | % | -10 | % | 2 | % | -13 | % | -34 | % | 141 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
-4 | % | 1 | % | -2 | % | 5 | % | 2 | % | 0 | % | -3 | % | 0 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
1) Of which in Sweden |
-10 | % | 16 | % | 75 | % | 40 | % | 22 | % | 0 | % | -52 | % | 5 | % | ||||||||||||||||
2) Of which in EU |
-5 | % | 9 | % | 4 | % | -4 | % | 3 | % | -3 | % | -5 | % | -1 | % |
Ericsson Fourth Quarter Report 2013 |
34 |
NET SALES BY REGION BY QUARTER (continued)
2012 | 2013 | |||||||||||||||||||||||||||||||
Year to date, SEK million |
Jan - Mar | Jan - Jun | Jan - Sep | Jan - Dec | Jan - Mar | Jan - Jun | Jan - Sep | Jan - Dec | ||||||||||||||||||||||||
North America |
12,775 | 25,762 | 39,799 | 56,749 | 15,773 | 31,114 | 45,567 | 59,339 | ||||||||||||||||||||||||
Latin America |
4,822 | 10,065 | 15,489 | 22,006 | 4,374 | 9,939 | 15,233 | 21,982 | ||||||||||||||||||||||||
Northern Europe & Central Asia 1) 2) |
2,292 | 5,650 | 8,347 | 11,345 | 2,283 | 4,991 | 7,940 | 11,618 | ||||||||||||||||||||||||
Western & Central Europe 2) |
4,306 | 8,400 | 12,030 | 17,478 | 4,349 | 8,871 | 13,270 | 18,485 | ||||||||||||||||||||||||
Mediterranean 2) |
4,620 | 10,834 | 16,235 | 23,299 | 5,271 | 11,430 | 17,089 | 24,156 | ||||||||||||||||||||||||
Middle East |
3,157 | 6,858 | 10,495 | 15,556 | 3,160 | 7,138 | 11,524 | 17,438 | ||||||||||||||||||||||||
Sub Saharan Africa |
2,200 | 4,991 | 7,791 | 11,349 | 2,131 | 4,784 | 7,477 | 10,049 | ||||||||||||||||||||||||
India |
1,421 | 3,121 | 4,858 | 6,460 | 1,606 | 2,885 | 4,165 | 6,138 | ||||||||||||||||||||||||
North East Asia |
9,154 | 17,577 | 25,950 | 36,196 | 6,054 | 12,696 | 18,749 | 27,398 | ||||||||||||||||||||||||
South East Asia & Oceania |
3,374 | 7,048 | 10,553 | 15,068 | 4,129 | 7,887 | 11,504 | 15,787 | ||||||||||||||||||||||||
Other 1) 2) |
2,853 | 5,987 | 9,296 | 12,273 | 2,902 | 5,628 | 7,826 | 14,986 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
50,974 | 106,293 | 160,843 | 227,779 | 52,032 | 107,363 | 160,344 | 227,376 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
1) Of which in Sweden |
834 | 2,116 | 3,765 | 5,033 | 1,020 | 2,296 | 3,094 | 4,427 | ||||||||||||||||||||||||
2) Of which in EU |
9,502 | 20,703 | 31,307 | 44,230 | 9,782 | 20,598 | 30,709 | 43,544 | ||||||||||||||||||||||||
Year to date, | 2012 | 2013 | ||||||||||||||||||||||||||||||
year-over-year change, percent |
Jan - Mar | Jan - Jun | Jan - Sep | Jan - Dec | Jan - Mar | Jan - Jun | Jan - Sep | Jan - Dec | ||||||||||||||||||||||||
North America |
-3 | % | 1 | % | 6 | % | 16 | % | 23 | % | 21 | % | 14 | % | 5 | % | ||||||||||||||||
Latin America |
20 | % | 13 | % | 4 | % | 0 | % | -9 | % | -1 | % | -2 | % | 0 | % | ||||||||||||||||
Northern Europe & Central Asia 1) 2) |
-32 | % | -29 | % | -27 | % | -25 | % | 0 | % | -12 | % | -5 | % | 2 | % | ||||||||||||||||
Western & Central Europe 2) |
-10 | % | -8 | % | -13 | % | -8 | % | 1 | % | 6 | % | 10 | % | 6 | % | ||||||||||||||||
Mediterranean 2) |
-4 | % | 5 | % | 4 | % | -2 | % | 14 | % | 6 | % | 5 | % | 4 | % | ||||||||||||||||
Middle East |
3 | % | 4 | % | 2 | % | 1 | % | 0 | % | 4 | % | 10 | % | 12 | % | ||||||||||||||||
Sub Saharan Africa |
-1 | % | 13 | % | 12 | % | 12 | % | -3 | % | -4 | % | -4 | % | -11 | % | ||||||||||||||||
India |
-55 | % | -48 | % | -41 | % | -34 | % | 13 | % | -8 | % | -14 | % | -5 | % | ||||||||||||||||
North East Asia |
6 | % | 0 | % | -5 | % | -5 | % | -34 | % | -28 | % | -28 | % | -24 | % | ||||||||||||||||
South East Asia & Oceania |
9 | % | 15 | % | 7 | % | 9 | % | 22 | % | 12 | % | 9 | % | 5 | % | ||||||||||||||||
Other1) 2) |
9 | % | 18 | % | 27 | % | 15 | % | 2 | % | -6 | % | -16 | % | 22 | % | ||||||||||||||||
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
-4 | % | -1 | % | -1 | % | 0 | % | 2 | % | 1 | % | 0 | % | 0 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|||||||||||||||||
1) Of which in Sweden |
-10 | % | 4 | % | 27 | % | 30 | % | 22 | % | 9 | % | -18 | % | -12 | % | ||||||||||||||||
2) Of which in EU |
-5 | % | 2 | % | 3 | % | 1 | % | 3 | % | -1 | % | -2 | % | -2 | % |
Q4 | Jan - Dec | |||||||||||||||
Country |
2012 | 2013 | 2012 | 2013 | ||||||||||||
UNITED STATES |
26 | % | 21 | % | 25 | % | 26 | % | ||||||||
JAPAN |
7 | % | 3 | % | 8 | % | 6 | % | ||||||||
CHINA |
6 | % | 7 | % | 6 | % | 5 | % | ||||||||
ITALY |
4 | % | 4 | % | 4 | % | 3 | % | ||||||||
KOREA |
2 | % | 8 | % | 3 | % | 3 | % |
Ericsson Fourth Quarter Report 2013 | 35 |
NET SALES BY REGION BY SEGMENT
Revenue from Telcordia is reported 50/50 between segments Global Services and Support Solutions. In the regional dimension, all of Telcordia sales is reported in Support Solutions, except for North America where it is split 50/50.
IPX was divested Q3 2012. For the first nine months of 2012, IPX was included in Support Solutions and region Other.
Q4 2013, SEK million | Jan - Dec 2013, SEK million | |||||||||||||||||||||||||||||||
Net- works |
Global Services |
Support Solutions |
Total | Net- works |
Global Services |
Support Solutions |
Total | |||||||||||||||||||||||||
North America |
5,322 | 7,422 | 1,028 | 13,772 | 28,518 | 28,230 | 2,591 | 59,339 | ||||||||||||||||||||||||
Latin America |
3,541 | 2,912 | 296 | 6,749 | 11,303 | 9,531 | 1,148 | 21,982 | ||||||||||||||||||||||||
Northern Europe & Central Asia |
2,334 | 1,261 | 83 | 3,678 | 7,203 | 4,158 | 257 | 11,618 | ||||||||||||||||||||||||
Western & Central Europe |
2,052 | 2,935 | 228 | 5,215 | 7,624 | 10,253 | 608 | 18,485 | ||||||||||||||||||||||||
Mediterranean |
2,863 | 3,911 | 293 | 7,067 | 10,795 | 12,632 | 729 | 24,156 | ||||||||||||||||||||||||
Middle East |
3,011 | 2,329 | 574 | 5,914 | 8,499 | 7,599 | 1,340 | 17,438 | ||||||||||||||||||||||||
Sub Saharan Africa |
1,286 | 1,067 | 219 | 2,572 | 4,990 | 4,142 | 917 | 10,049 | ||||||||||||||||||||||||
India |
1,182 | 713 | 78 | 1,973 | 3,090 | 2,735 | 313 | 6,138 | ||||||||||||||||||||||||
North East Asia |
5,975 | 2,514 | 160 | 8,649 | 16,669 | 10,367 | 362 | 27,398 | ||||||||||||||||||||||||
South East Asia & Oceania |
2,375 | 1,744 | 164 | 4,283 | 8,914 | 6,362 | 511 | 15,787 | ||||||||||||||||||||||||
Other |
4,828 | 358 | 1,974 | 7,160 | 10,094 | 1,434 | 3,458 | 14,986 | ||||||||||||||||||||||||
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|
|
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|
|
|
|||||||||||||||||
Total |
34,769 | 27,166 | 5,097 | 67,032 | 117,699 | 97,443 | 12,234 | 227,376 | ||||||||||||||||||||||||
Share of Total |
52 | % | 40 | % | 8 | % | 100 | % | 52 | % | 43 | % | 5 | % | 100 | % |
Q4 2013 | ||||||||||||||||
Sequential change, percent |
Net- works |
Global Services |
Support Solutions |
Total | ||||||||||||
North America |
-19 | % | 2 | % | 75 | % | -5 | % | ||||||||
Latin America |
28 | % | 26 | % | 38 | % | 27 | % | ||||||||
Northern Europe & Central Asia |
18 | % | 38 | % | 63 | % | 25 | % | ||||||||
Western & Central Europe |
19 | % | 15 | % | 81 | % | 19 | % | ||||||||
Mediterranean |
12 | % | 32 | % | 124 | % | 25 | % | ||||||||
Middle East |
34 | % | 29 | % | 77 | % | 35 | % | ||||||||
Sub Saharan Africa |
-5 | % | -5 | % | 0 | % | -4 | % | ||||||||
India |
109 | % | 5 | % | 105 | % | 54 | % | ||||||||
North East Asia |
69 | % | 2 | % | 181 | % | 43 | % | ||||||||
South East Asia & Oceania |
24 | % | 11 | % | 27 | % | 18 | % | ||||||||
Other |
254 | % | -1 | % | 316 | % | 226 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
30 | % | 13 | % | 117 | % | 27 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Q4 2013 | ||||||||||||||||
Year over year change, percent |
Net- works |
Global Services |
Support Solutions |
Total | ||||||||||||
North America |
-43 | % | 9 | % | 28 | % | -19 | % | ||||||||
Latin America |
23 | % | -10 | % | -26 | % | 4 | % | ||||||||
Northern Europe & Central Asia |
50 | % | 3 | % | -60 | % | 23 | % | ||||||||
Western & Central Europe |
-12 | % | 0 | % | 29 | % | -4 | % | ||||||||
Mediterranean |
4 | % | -4 | % | 15 | % | 0 | % | ||||||||
Middle East |
22 | % | 13 | % | 8 | % | 17 | % | ||||||||
Sub Saharan Africa |
-37 | % | -14 | % | -23 | % | -28 | % | ||||||||
India |
32 | % | 23 | % | -39 | % | 23 | % | ||||||||
North East Asia |
-8 | % | -31 | % | 26 | % | -16 | % | ||||||||
South East Asia & Oceania |
-6 | % | -7 | % | 74 | % | -5 | % | ||||||||
Other |
146 | % | -8 | % | 217 | % | 141 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
-1 | % | -3 | % | 40 | % | 0 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Jan - Dec 2013 | ||||||||||||||||
Year over year change, percent |
Net- works |
Global Services |
Support Solutions |
Total | ||||||||||||
North America |
-7 | % | 20 | % | -5 | % | 5 | % | ||||||||
Latin America |
16 | % | -10 | % | -30 | % | 0 | % | ||||||||
Northern Europe & Central Asia |
14 | % | -8 | % | -46 | % | 2 | % | ||||||||
Western & Central Europe |
24 | % | -3 | % | -14 | % | 6 | % | ||||||||
Mediterranean |
14 | % | -3 | % | -6 | % | 4 | % | ||||||||
Middle East |
26 | % | 4 | % | -9 | % | 12 | % | ||||||||
Sub Saharan Africa |
-22 | % | 6 | % | -9 | % | -11 | % | ||||||||
India |
-13 | % | 11 | % | -32 | % | -5 | % | ||||||||
North East Asia |
-26 | % | -22 | % | -30 | % | -24 | % | ||||||||
South East Asia & Oceania |
12 | % | -3 | % | 1 | % | 5 | % | ||||||||
Other |
28 | % | 17 | % | 10 | % | 22 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
0 | % | 0 | % | -9 | % | 0 | % | ||||||||
|
|
|
|
|
|
|
|
Ericsson Fourth Quarter Report 2013 |
36 |
2012 | 2013 | |||||||||||||||||||||||||||||||
Isolated quarters, SEK million |
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | ||||||||||||||||||||||||
Opening balance |
6,265 | 5,930 | 5,318 | 5,243 | 8,638 | 9,499 | 7,716 | 6,414 | ||||||||||||||||||||||||
Additions |
1,003 | 616 | 810 | 4,582 | 1,915 | 1,215 | 658 | 911 | ||||||||||||||||||||||||
Utilization/Cash out |
-980 | -850 | -664 | -981 | -758 | -2,365 | -1,534 | -1,364 | ||||||||||||||||||||||||
Of which restructuring |
-401 | -342 | -160 | -267 | -324 | -1,001 | -457 | -307 | ||||||||||||||||||||||||
Reversal of excess amounts |
-370 | -453 | -95 | -155 | -209 | -586 | -191 | -575 | ||||||||||||||||||||||||
Reclassification, translation difference and other |
12 | 75 | -126 | -51 | -87 | -47 | -235 | -24 | ||||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Closing balance |
5,930 | 5,318 | 5,243 | 8,638 | 9,499 | 7,716 | 6,414 | 5,362 | ||||||||||||||||||||||||
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|||||||||||||||||
2012 | 2013 | |||||||||||||||||||||||||||||||
Year to date, SEK million |
Jan - Mar | Jan - Jun | Jan - Sep | Jan - Dec | Jan - Mar | Jan - Jun | Jan - Sep | Jan - Dec | ||||||||||||||||||||||||
Opening balance |
6,265 | 6,265 | 6,265 | 6,265 | 8,638 | 8,638 | 8,638 | 8,638 | ||||||||||||||||||||||||
Additions |
1,003 | 1,619 | 2,429 | 7,011 | 1,915 | 3,130 | 3,788 | 4,699 | ||||||||||||||||||||||||
Utilization/Cash out |
-980 | -1,830 | -2,494 | -3,475 | -758 | -3,123 | -4,657 | -6,021 | ||||||||||||||||||||||||
Of which restructuring |
-401 | -743 | -903 | -1,170 | -324 | -1,325 | -1,782 | -2,089 | ||||||||||||||||||||||||
Reversal of excess amounts |
-370 | -823 | -918 | -1,073 | -209 | -795 | -986 | -1,561 | ||||||||||||||||||||||||
Reclassification, translation difference and other |
12 | 87 | -39 | -90 | -87 | -134 | -369 | -393 | ||||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Closing balance |
5,930 | 5,318 | 5,243 | 8,638 | 9,499 | 7,716 | 6,414 | 5,362 | ||||||||||||||||||||||||
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|
|
INFORMATION ON INVESTMENTS IN ASSETS SUBJECT TO DEPRECIATION, AMORTIZATION, IMPAIRMENT AND WRITE-DOWNS
2012 | 2013 | |||||||||||||||||||||||||||||||
Isolated quarters, SEK million |
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | ||||||||||||||||||||||||
Additions |
||||||||||||||||||||||||||||||||
Property, plant and equipment |
1,648 | 994 | 1,461 | 1,326 | 1,196 | 1,278 | 778 | 1,251 | ||||||||||||||||||||||||
Capitalized development expenses |
251 | 525 | 435 | 430 | 282 | 214 | 237 | 182 | ||||||||||||||||||||||||
IPR, brands and other intangible assets |
5,570 | 992 | 341 | 409 | 196 | 22 | 1,418 | 562 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
7,469 | 2,511 | 2,237 | 2,165 | 1,674 | 1,514 | 2,433 | 1,995 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|||||||||||||||||
Depreciation, amortization and impairment losses |
||||||||||||||||||||||||||||||||
Property, plant and equipment |
914 | 982 | 1,035 | 1,081 | 1,008 | 983 | 1,008 | 1,210 | ||||||||||||||||||||||||
Capitalized development expenses |
245 | 259 | 265 | 555 | 303 | 342 | 388 | 374 | ||||||||||||||||||||||||
IPR, brands and other intangible assets, etc. |
1,156 | 1,160 | 1,094 | 1,143 | 1,100 | 1,111 | 1,150 | 1,160 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
2,315 | 2,401 | 2,394 | 2,779 | 2,411 | 2,436 | 2,546 | 2,744 | ||||||||||||||||||||||||
|
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|
|
|
|
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|
|
|
|
|
|
|
|
RECONCILIATION TABLE, NON-IFRS MEASUREMENTS
CASH CONVERSION |
| |||||||||||||||||||||||||||||||
2012 | 2013 | |||||||||||||||||||||||||||||||
Isolated quarters, SEK million |
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | ||||||||||||||||||||||||
Net income |
8,804 | 1,205 | 2,184 | -6,255 | 1,204 | 1,516 | 3,010 | 6,444 | ||||||||||||||||||||||||
Net income reconciled to cash |
4,269 | 3,148 | 4,684 | 6,914 | 1,598 | 3,483 | 4,398 | 12,523 | ||||||||||||||||||||||||
Cash flow from operating activities |
731 | -1,364 | 6,973 | 15,691 | -2,970 | 4,291 | 1,459 | 14,609 | ||||||||||||||||||||||||
Cash conversion |
17.1 | % | -43.3 | % | 148.9 | % | 226.9 | % | -185.9 | % | 123.2 | % | 33.2 | % | 116.7 | % | ||||||||||||||||
NET CASH, END OF PERIOD |
| |||||||||||||||||||||||||||||||
Dec 31 | Mar 31 | Jun 30 | Sep 30 | Dec 31 | ||||||||||||||||||||||||||||
SEK million |
2012 | 2013 | 2013 | 2013 | 2013 | |||||||||||||||||||||||||||
Cash and cash equivalents |
44,682 | 37,444 | 38,479 | 35,163 | 42,095 | |||||||||||||||||||||||||||
+ Short term investments |
32,026 | 34,641 | 26,335 | 25,505 | 34,994 | |||||||||||||||||||||||||||
- Borrowings, non-current |
23,898 | 23,638 | 22,471 | 21,745 | 22,067 | |||||||||||||||||||||||||||
- Borrowings, current |
4,769 | 5,084 | 4,018 | 3,849 | 7,388 | |||||||||||||||||||||||||||
- Post employment benefits |
9,503 | 11,132 | 10,907 | 10,385 | 9,825 | |||||||||||||||||||||||||||
Net cash, end of period |
38,538 | 32,231 | 27,418 | 24,689 | 37,809 |
Ericsson Fourth Quarter Report 2013 |
37 |
Oct - Dec | Jan - Dec | |||||||||||||||
2012 | 2013 | 2012 | 2013 | |||||||||||||
Number of shares and earnings per share |
||||||||||||||||
Number of shares, end of period (million) |
3,305 | 3,305 | 3,305 | 3,305 | ||||||||||||
Of which class A-shares (million) |
262 | 262 | 262 | 262 | ||||||||||||
Of which class B-shares (million) |
3,043 | 3,043 | 3,043 | 3,043 | ||||||||||||
Number of treasury shares, end of period (million) |
85 | 74 | 85 | 74 | ||||||||||||
Number of shares outstanding, basic, end of period (million) |
3,220 | 3,231 | 3,220 | 3,231 | ||||||||||||
Numbers of shares outstanding, diluted, end of period (million) |
3,251 | 3,262 | 3,251 | 3,262 | ||||||||||||
Average number of treasury shares (million) |
86 | 75 | 76 | 79 | ||||||||||||
Average number of shares outstanding, basic (million) |
3,219 | 3,230 | 3,216 | 3,226 | ||||||||||||
Average number of shares outstanding, diluted (million) 1) |
3,251 | 3,261 | 3,247 | 3,257 | ||||||||||||
Earnings per share, basic (SEK) |
-2.01 | 1.98 | 1.80 | 3.72 | ||||||||||||
Earnings per share, diluted (SEK) 1) |
-1.99 | 1.97 | 1.78 | 3.69 | ||||||||||||
Ratios |
||||||||||||||||
Days sales outstanding |
| | 86 | 97 | ||||||||||||
Inventory turnover days |
61 | 55 | 73 | 62 | ||||||||||||
Payable days |
45 | 43 | 57 | 53 | ||||||||||||
Equity ratio (%) |
| | 50.4 | % | 52.6 | % | ||||||||||
Capital turnover (times) |
1.5 | 1.5 | 1.3 | 1.3 | ||||||||||||
Cash conversion %, end of period* |
226.9 | % | 116.7 | % | 115.9 | % | 79.0 | % | ||||||||
Payment readiness, end of period |
| | 84,951 | 82,631 | ||||||||||||
Payment readiness, as percentage of sales |
| | 37.3 | % | 36.3 | % | ||||||||||
Exchange rates used in the consolidation |
||||||||||||||||
SEK/EURaverage rate |
| | 8.70 | 8.67 | ||||||||||||
closing rate |
| | 8.58 | 8.90 | ||||||||||||
SEK/USDaverage rate |
| | 6.73 | 6.52 | ||||||||||||
closing rate |
| | 6.51 | 6.46 | ||||||||||||
Other |
||||||||||||||||
Regional inventory, end of period, |
19,353 | 14,652 | 19,353 | 14,652 | ||||||||||||
Export sales from Sweden |
30,201 | 35,216 | 106,997 | 108,944 |
1) | Potential ordinary shares are not considered when their conversion to ordinary shares would increase earnings per share |
2) | Excluding amortizations and write-downs of acquired intangibles |
* | Reconciliation of non-IFRS financial measures to the most directly comparable IFRS financial measures can be found on page 37. |
2012 | 2013 | |||||||||||||||||||||||||||||||
End of period |
Mar 31 | Jun 30 | Sep 30 | Dec 31 | Mar 31 | Jun 30 | Sep 30 | Dec 31 | ||||||||||||||||||||||||
North America |
16,281 | 15,872 | 15,486 | 15,501 | 15,404 | 15,047 | 14,825 | 14,931 | ||||||||||||||||||||||||
Latin America |
11,538 | 11,176 | 10,920 | 11,219 | 11,153 | 11,412 | 11,402 | 11,445 | ||||||||||||||||||||||||
Northern Europe & Central Asia 1) |
21,341 | 21,457 | 21,334 | 21,211 | 21,043 | 21,148 | 22,038 | 21,892 | ||||||||||||||||||||||||
Western & Central Europe |
10,900 | 10,837 | 11,897 | 11,257 | 11,118 | 11,235 | 11,612 | 11,530 | ||||||||||||||||||||||||
Mediterranean |
11,858 | 11,986 | 12,321 |