15 slides from Telefonaktiebolaget Lm Ericsson Class A's earnings presentation, Apr 16, 2024
Slide 1: Ericsson First quarter 2024
Ericsson First quarter 2024 April 16, 2024 © Telefonaktiebolaget LM Ericsson 2024 | First quarter report 2024 | April 16, 2024
Slide 2: First quarter 2024 forward-looking statements
First quarter 2024 This presentation contains forward-looking statements. Such statements are based on our current expectations and are subject to risks and uncertainties that could materially affect our business and results. Please read our earnings reports and our most recent annual report for a b
Slide 3: Business Overview
Business Overview Börje Ekholm President and CEO © Telefonaktiebolaget LM Ericsson 2024 | First quarter report 2024 | April 16, 2024
Slide 4: Q1 2024 – Key takeaways
Q1 2024 – Key takeaways Organic sales YoY: ● Strong gross margins growth – supported by competitive product portfolio and cost initiatives -14% ● Continued focus on strategy execution: – Creating industry-leading solutions for high-performance and Gross margin1: programmable networks – Taking steps
Slide 5: Financial Overview
Financial Overview Lars Sandström Chief Financial Officer © Telefonaktiebolaget LM Ericsson 2024 | First quarter report 2024 | April 16, 2024
Slide 6: Financial update Q1 2024
Financial update Q1 2024 Financial performance Excluding restructuring charges SEK b. 24Q1 23Q1 YoY 23Q4 ● Organic and FX adjusted sales: -14% YoY – Decline mainly due to Networks (-19%) Net sales 53.3 62.6 -15% 71.9 ● Gross margin: 42.7% Organic and FX adj. sales -14% Gross income 22.8 24.9 -9% 29.
Slide 7: Mobile Networks
Mobile Networks Highlights Segment Networks ● Networks 70 25% 60 – Strong gross margin1 of 44.3% 50 20% 15% – EBITA1 of SEK 4.3 b. 40 30 10% – Cautious customer investment levels 20 5% 10 ● Cloud Software and Services 0 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 0% – Continued execution o
Slide 8: Enterprise
Enterprise Highlights ● Key strategic pillar – Accelerating digital transformation – Creating new monetization opportunities Segment Enterprise 8 0% ● Sales broadly stable YoY 7 -5% 6 – Growth in Enterprise Wireless Solutions within 5 -10% 4 -15% both Private Cellular and Cradlepoint 3 -20% 2 -25% –
Slide 9: Cash flow and financial position
Cash flow and financial position First quarter highlights 80 Free cash flow before M&A (SEK b.) Net cash (SEK b.) 70 Return on Capital Employed (%) 20 14% 60 20 80 12% 10 15 FCF/Sales long-term target 9%-12% 50 10% 70 0 10 8% 40 -10 60 5 6% -20 30 4% 50 -30 0 2% 20 -40 40 -5 0% -50 10 -10 -2% 30 -60
Slide 10: Outlook
Outlook1 Sales Average seasonality between Q1 and Q2 last 3 years: +8% Networks Sales Cloud Software and Average seasonality between Q1 and Q2 last 3 years: +13% Services Gross margin Gross margin2 in Q2 is expected to be in the range of 42-44% Networks Operating Average seasonality between Q1 and Q
Slide 11: Closing Remarks
Closing Remarks Börje Ekholm President and CEO © Telefonaktiebolaget LM Ericsson 2024 | First quarter report 2024 | April 16, 2024
Slide 12: Summary
Summary ● Mobile networks market to remain challenging – business mix to improve in the second half ● Laser focused on managing what is in our control, including cost saving initiatives ● Continued focus on strategy execution ● Maintaining our technology and market leadership Our long-term EBITA1 ta
Slide 13: Q&A
Q&A © Telefonaktiebolaget LM Ericsson 2024 | First quarter report 2024 | April 16, 2024
Slide 14: W
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Slide 15: Forward-looking statements
Forward-looking statements This report includes forward-looking statements. All statements other than statements of historical fact are forward-looking statements. The words “believe,” “expect,” “foresee,” “anticipate,” “assume,” “intend,” “likely,” “projects,” “may,” “could,” “plan,” “estimate,” “f