Telefonaktiebolaget Lm Ericsson Class A · OMXSTO:ERIC_A
Telefonaktiebolaget Lm Ericsson Class A — Ericsson — Q1 2004 Earnings Presentation
13 slides from Telefonaktiebolaget Lm Ericsson Class A's earnings presentation, Dec 5, 2004
Slide 1: First Quarter Report 2004
First Quarter FIRST QUARTER REPORT 2004 © Copyright Ericsson AB 2004. All rights reserved
Slide 2: First Quarter - Karl-Henrik Sundström, CFO
First Quarter KARL-HENRIK SUNDSTRÖM CFO © Copyright Ericsson AB 2004. All rights reserved
Slide 3: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward looking statements. Such statements are based on our current expectations and are subject to certain risks and uncertainties that could negatively affect our business. Please read our earnings reports for a better understanding of these risks
Slide 4: Financial summary
Financial summary (SEK b.) YoY % Q103 Q403 Q104 change Orders, net 27.1 29.5 33.0 22% Sales 25.9 36.2 28.1 9% Gross margin (%) 34.1 41.6 44.7 Operating margin (%) -10.8 17.5 16.1 Income after financial items -2.8 5.9 4.3 EBITDA (%) -4.6 21.2 20.0 2003 periods adjusted for restructuring costs Fourth
Slide 5: Book-to-bill Q1 2004
Book-to-bill Q1 2004 (SEK b.) YoY % Region Orders Sales change % of Sales Book-to-bill Western Europe 10.2 7.9 -3% 28% 1.29 CEMA 7.6 7.0 22% 25% 1.08 North America 4.7 4.4 12% 16% 1.06 Latin America 3.7 2.9 63% 10% 1.29 Asia Pacific 6.8 5.9 -5% 21% 1.16 Total 33.0 28.1 9% 100% 1.17 Positive Book-to-
Slide 6: Systems
Systems (SEK b.) YoY % Q103 Q403 Q104 change Orders 25.0 27.6 31.1 24% Sales 24.0 33.6 26.1 9% Operating income -1.5 5.8 4.2 Operating margin (%) -6.2% 17.2% 16.1% 2003 periods adjusted for restructuring costs Strongest Orders Booked since Q202 © Copyright Ericsson AB 2004. All rights reserved 6
Slide 7: Effects of FX and hedging on operating income
Effects of FX and hedging on operating income 2003 2004 3 months 6 months 9 months 12 months 3 months Gross (SEK b.) -0.4 -1.2 -2.2 -4.0 -1.0 Hedging (SEK b.) 0.3 0.6 0.7 0.9 0.2 Net (SEK b.) -0.1 -0.6 -1.5 -3.1 -0.8 Avg USD 2002/2003 10.53 10.18 9.93 9.72 8.59 Avg USD 2003/2004 8.59 8.33 8.25 8.08
Slide 8: Cash flow
Cash flow (SEK b.) Q103 Q403 Q104 Net income -4.3 0.1 3.0 Adj. income to cash 0.6 4.2 1.9 Income to cash -3.7 4.3 4.9 Inventory -0.4 0.2 -3.0 Receivables 4.7 -3.5 -0.5 Payables, provisions and other 1.9 3.9 1.4 working cap Customer financing 0.0 -0.2 0.4 Working capital 6.2 0.4 -1.7 Capitalized deve
Slide 9: Operating efficiency trends
Operating efficiency trends Q103 Q403 Q104 Accounts receivable (SEK b.) 33.5 31.9 32.8 DSO 109 79 102 Inventories (SEK b.) 14.5 11.0 14.4 Inventory turnover 4.9 6.1 4.9 Inventory days 76 46 84 Accounts payable (SEK b.) 10.1 9.0 9.3 Payable days 53 37 54 Key metrics affected by seasonality © Copyrigh
Slide 10: Strong financial position
Strong financial position (SEK b.) Q103 Q403 Q104 Cash 67.2 73.2 74.4 Short-term loans -14.4 -9.5 -8.1 Back-up facilities (remains at USD 1.6 b.) 13.6 11.6 12.1 Payment readiness 66.5 75.3 78.4 Payment readiness (%) 64% 64% 70% Interest-bearing liabilities and 61.4 46.2 47.6 provisions* Net Cash 5.8
Slide 11: Sony Ericsson
Sony Ericsson YoY % Q103 Q403 Q104 change Number of units shipped (million) 5.4 8.0 8.8 63.0% Sales (EUR m.) 806 1,437 1,338 66.0% IBT -113 46 97 Net income -104 43 82 Ericsson share in earnings (SEK b.) -0.5 0.3* 0.5 * Adjusted for restructuring Taking market share with attractive product offerings
Slide 12: Outlook and restructuring progress
Outlook and restructuring progress Mobile systems market now expected to show slight to moderate growth compared to 2003 (USD) – Ericsson well positioned to benefit from the market opportunities Good growth in professional services market OPEX run-rate target of SEK 33 b. remains SEK 5 b. of
Slide 13: Questions & Answers
First Quarter QUESTIONS & ANSWERS © Copyright Ericsson AB 2004. All rights reserved