15 slides from Telefonaktiebolaget Lm Ericsson Class A's earnings presentation, Apr 18, 2023
Slide 1: Ericsson First quarter 2023
Ericsson First quarter 2023 Apr 18, 2023 © Telefonaktiebolaget LM Ericsson 2023 | First quarter report 2023 | Apr 18, 2023
Slide 2: First quarter 2023 forward-looking statements
First quarter 2023 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: Strategic overview
Strategic overview Börje Ekholm President and CEO © Telefonaktiebolaget LM Ericsson 2023 | First quarter report 2023 | Apr 18, 2023
Slide 4: Q1 2023 Highlights
Q1 2023 Highlights Gross income1: ●Executing on our strategic priorities – Leveraging our leadership position in Mobile Networks and building a network API platform – Networks saw strong growth in India, offset by lower sales in other markets SEK 24.9 b. SEK 1.6 b. YoY change – Continuing to deliver
Slide 5: Financial overview
Financial overview Carl Mellander Chief Financial Officer © Telefonaktiebolaget LM Ericsson 2023 | First quarter report 2023 | Apr 18, 2023
Slide 6: Market update Q1
Market update Q1 MANA MNEA SEK 16.9 b. MELA SEK 4.4 b. 27% -26% SEK 14.2 b. 7% -19% MMEA 23% -12% SEK 4.2 b. Market area ”Other” 7% -8% MOAI SEK 8.9 b. SEK 13.9 b. 14% 28% 22% 132% Share of Group sales Organic sales growth © Telefonaktiebolaget LM Ericsson 2023 | First quarter report 2023 | Apr 18,
Slide 7: Q1 2023 in numbers
Q1 2023 in numbers Financial Performance Excluding restructuring charges ● Organic and FX adjusted sales: Flat YoY, as anticipated SEK b. 23Q1 22Q1 YoY 22Q4 – Networks: North America declined by -30% while Net sales 62.6 55.1 14% 86.0 South East Asia, Oceania and India grew by 184% Organic and FX ad
Slide 8: Free cash flow and financial position
Free cash flow and financial position Financial Performance ● Following very strong Free cash flow in Q4, Q1 SEK b. Q123 Q122 weaker as expected Cash flow from operating activities -5.8 0.0 ● Working capital grew related to business mix shift Capex net and other investing activities -1.5 -1.1 – Incr
Slide 9: Outlook
Outlook • Restructuring charges may amount to around SEK 7 b. for FY, of which more than half is likely to be booked in Cost savings Q2. • Additional cost savings opportunities of SEK 2 b. – plan to reduce cost run rate by SEK 11 b. by 2023. • Networks: Sales in Q2 is expected to be in line with Q1
Slide 10: Reaching our long-term target range by 2024
Reaching our long-term target range by 2024 EBITA margin1 bridge between Q1 2023 rolling 4Q and FY 2024 Illustrative Changing business mix, 18% market share gain, commercial and operating leverage SG&A: 30% 15% COGS: 70% SEK 11 b. in gross cost reduction 11.9%2 10.5% Q1 2023 One-off Q1’23 R4Q Inflat
Slide 11: Summary
Summary ●Well positioned to capitalize on the full value of 5G – Expect gradual recovery in H2 2023 – Turnaround of Cloud Software and Services on track to reaching break-even in 2023 – Enterprise Wireless Solutions and Global Communications Platform to drive Enterprise expansion ●Reduction in custo
Slide 12: Q&A
Q&A © Telefonaktiebolaget LM Ericsson 2023 | First quarter report 2023 | Apr 18, 2023
Slide 13: Closing remarks
Closing remarks Börje Ekholm President and CEO © Telefonaktiebolaget LM Ericsson 2023 | First quarter report 2023 | Apr 18, 2023
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