15 slides from Telefonaktiebolaget Lm Ericsson Class A's earnings presentation, Jul 14, 2022
Slide 1: Ericsson Second quarter 2022
Ericsson ia Second quarte - July 14,2022
Slide 2: Second quarter 2022
Ss W Second 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 f
Slide 3: Business overview
Business overview ~Bérje Ekholm Presidentand CEO
Slide 4: Q2 in brief
Q2 in brief * Strong business momentum — Rollout of 5G networks and market share gains ¢ Gross margin decreased YoY due to lower IPR and increased cost * Continue to fulfil customer commitments and strengthen our competitive advantage * Gross margin improved by SEK 2.4 b. YoY, to SEK 26.3 b. driven
Slide 5: Customer and market in Q2
W Customer and market in Q2 * Continued momentum for 5G solutions in North America « Market share gains in Europe * Sales growth in Africa — 4G rollouts * Project milestones in South East Asia, Oceania and India * Limited Networks sales decline in North East Asia Share of Group sales | Organic sales
Slide 6: Ericsson strategy
W Ericsson strategy Superior experience for consumers Reliable & easy to use solutions for businesses B&B FB we» A & & FSF & mw A Customer values Businesses Foundation Technology leadership Cost efficiency Global skill & scale © Telefonaktiebolaget LM Ericsson 2822 | Second quarter report 2022 | 202
Slide 7: Financial overview
Financial overview — ~ ar! Mellander. Chief Financial Officer
Slide 8: Q2 2022 in numbers
W Q2 2022 in numbers r— Financial Performance . . 6 Excluding restructuring charges * Organic and FX adjusted sales: +5% YoY SEK b. 22Q2 | 2192 22Q1 — Organic growth in four of the five market areas Net sales 625 549 14% 55.1 — IPR revenues SEK 1.4 (2.3) b. Organic and FX adj. sales 5% * Gross margi
Slide 9: Gross margin
Gross margin r— Development since Q1 2020 Excluding restructuring charges Ql Q2 Q3 Q4 Ql Q2 Q3 Q4 Qi 2020 2021 2022 ---- By Quarter ——Rolling 4Q Q2 © Telefonaktiebolaget LM Ericsson 2022 | Second quarter report 2022 | 2022-07-14 | Page? Gross margin? rolling 4Q: 43.0% Gross margin! 42.2% (43.4%) — L
Slide 10: Free cash flow and financial position
W Free cash flow and financial position -— Financial Performance Saab, 0222 221 . Free cash flow berore M&A of ok 4.4 (4.1) b. — Driven rofit improvements EBIT excluding restructuring charges 74 5.8 yp P Depreciation, amortization &impairmentlosses 2.2.2.1 * Operating net assets (working capital) Re
Slide 11: Summary
s s Summary * Mitigating inflationary pressure * Business momentum continues — expect the global 5G build-out will be larger and continue for longer * Intended acquisition of Vonage, working to secure approval and close the transaction before end of July « Adjusted our structure to capture opportuni
Slide 12: Telefonaktiebolaget LM Ericsson 2@
Telefonaktiebolaget LM Ericsson 2@ W
Slide 13: Closing remarks
A\\¥ Closing remar ~Borje Ekholm - President and CEO
Slide 14: W
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Slide 15: 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