16 slides from Telefonaktiebolaget Lm Ericsson Class A's earnings presentation, Apr 14, 2022
Slide 1: Ericsson First quarter 2022
Ericsson First quarter 2022 Apr 14, 2022 © Telefonaktiebolaget LM Ericsson 2022 | First quarter report 2022 | 2022-04-14 | Page 1
Slide 2: First quarter 2022
First quarter 2022 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 2022 | First quarter report 2022 | 2022-04-14 | Page 3
Slide 4: Q1 in brief
Q1 in brief ●Invasion of Ukraine represents massive setback for the world Organic sales: ●Strong business momentum 3% ●Organic sales driven by Networks and Cradlepoint ●Deliver on customer commitments Gross margin: ●Gross margin impacted by proactive investments in supply chain resilience and timing
Slide 5: Customer and market
Customer and market ● Continued good momentum in North America ● Market share gains in Europe – Russia sales in 2021: SEK 4.1 b. 38% +9% ● Sales decline in Japan due to project 28% +15% timing 10% -20% ● Sales growth in Africa 8% -9% ● Timing of orders and project 11% -17% milestones in South East A
Slide 6: Strategy execution
Strategy execution Continue to expand mobile network leadership with strong portfolio New RAN products and solutions consume 25 percent less power compared to Mobile networks / current products Core business 5G core execution – 16 out of the 20 largest operators globally use Ericsson Ericsso
Slide 7: Financial overview
Financial overview Carl Mellander Chief Financial Officer © Telefonaktiebolaget LM Ericsson 2022 | First quarter report 2022 | 2022-04-14 | Page 7
Slide 8: Q1 2022 in numbers
Q1 2022 in numbers Financial Performance Excluding restructuring charges ● Organic and FX adjusted sales: +3% YoY SEK b. 22Q1 21Q1 YoY 21Q4 – Driven by North America and Europe & Latin America Net sales 55.1 49.8 11% 71.3 ● IPR revenues SEK 1.4 (0.8) b. – Renewal of agreements Organic and FX adj. gr
Slide 9: Segment summary
Segment summary Excluding restructuring charges Networks Digital Services SEK b. 22Q1 21Q1 YoY 21Q4 SEK b. 22Q1 21Q1 YoY 21Q4 Sales 40.7 36.3 12% 51.1 Sales 7.2 6.9 5% 12.7 Organic 4% Organic -2% Gross margin 44.8% 46.0% 46.4% Gross margin 42.9% 43.6% 43.4% EBIT 6.8 7.2 -6% 12.0 EBIT -1.4 -1.5 0.4 E
Slide 10: Gross margin
Gross margin Development since Q1 2020 Excluding restructuring charges • Rolling 4Q gross margin1 43.3% • Q1 gross margin1 42.3% (42.9%) 43.2% 43.4% 44.0% 43.5% 43.3% – Networks: Timing of software and investments in 42.9% supply chain resilience 40.4% 40.6% 42.6% 42.3% – Digital Services: Initial d
Slide 11: Free cash flow and financial position
Free cash flow and financial position Financial Performance SEK b. Q122 Q121 ● Free cash flow before M&A of SEK -1.7 (1.6) b. EBIT excluding restructuring charges 4.8 5.3 ● Inventory build-up for supply chain resilience to Depreciation, amortization & impairment losses 2.1 1.9 meet customer demand R
Slide 12: Summary
Summary Börje Ekholm President and CEO © Telefonaktiebolaget LM Ericsson 2022 | First quarter report 2022 | 2022-04-14 | Page 12
Slide 13: Closing remarks
Closing remarks ●Continued to execute on our strategy to extend leadership in mobile networks and expand into enterprise ●Good core business growth in North America and Europe & Latin America and in enterprise business in Cradlepoint ●Well positioned to conclude outstanding IPR renewals ●Working tow
Slide 14: © Telefonaktiebolaget LM Ericsson 2022 | First quarter report 2022
© Telefonaktiebolaget LM Ericsson 2022 | First quarter report 2022
Slide 15: W
W
Slide 16: Forward-looking statements
Forward-looking statements This presentation includes forward-looking statements, including statements reflecting management’s current views relating to the growth of the market, future market conditions, future events, financial condition, and expected operational and financial performance, includi