14 slides from Telefonaktiebolaget Lm Ericsson Class A's earnings presentation, Jul 14, 2023
Slide 1: Ericsson Second quarter 2023
Ericsson Second quarter 2023 July 14, 2023 © Telefonaktiebolaget LM Ericsson 2023 | Second quarter report 2023 | July 14, 2023
Slide 2: Second quarter 2023
Second 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
Slide 3: Strategic overview
Strategic overview Börje Ekholm President and CEO © Telefonaktiebolaget LM Ericsson 2023 | Second quarter report 2023 | July 14, 2023
Slide 4: Q2 2023 – Key takeaways
Q2 2023 – Key takeaways Organic sales YoY: ●Executing with discipline and focus –Networks saw record build-out speed in India, partly mitigating expected softening in other markets, notably North America -9% –Delivering on revised strategy in Cloud Software and Services, on track to deliver at least
Slide 5: Financial overview
Financial overview Carl Mellander Chief Financial Officer © Telefonaktiebolaget LM Ericsson 2023 | Second quarter report 2023 | July 14, 2023
Slide 6: Market update Q2
Market update Q2 MANA MNEA SEK 14.4 b. MELA SEK 5.1 b. 22% -42% SEK 16.0 b. 8% -32% MMEA Market area ”Other” 25% -3% SEK 5.3 b. (Enterprise and IPR) MOAI SEK 9.8 b. 8% -4% SEK 13.8 b. 15% 38% 21% 71% Share of Group sales Organic sales growth © Telefonaktiebolaget LM Ericsson 2023 | Second quarter re
Slide 7: Q2 2023 in numbers
Q2 2023 in numbers Financial Performance Excluding restructuring charges ● Organic and FX adjusted sales: -9% YoY SEK b. 23Q2 22Q2 YoY 23Q1 – Networks: -13% – Sales doubled in South East Asia, Net sales 64.4 62.5 3% 62.6 Oceania and India. Sales declined in the other Organic and FX adj. sales -9% ma
Slide 8: Free cash flow and financial position
Free cash flow and financial position Financial Performance ● Free cash flow before M&A was SEK -5.0 b. SEK b. Q223 Q222 – Lower EBIT and increased working capital Cash flow from operating activities -2.9 6.3 ● Working capital increased in the quarter Capex net and other investing activities -1.4 -1
Slide 9: Outlook
Outlook Gross margin • Networks: Gross margin1 is estimated to be in the range of 38-40% in Q3. Operating • Q2Q3: Average seasonality last 3 years (2020–2022) excluding Vonage: Decrease of SEK 0.7 b. expenses • Amortization of intangible assets is expected to continue to be around SEK -0.9 b. per q
Slide 10: Summary
Summary ●Executing on our strategy to capitalize on the full value of 5G – Leveraging our technology leadership in mobile networks – Continuing to embed ethics and compliance throughout the company – Driving expansion into Enterprise and putting Ericsson on higher growth trajectory ●Traffic growth w
Slide 11: © Telefonaktiebolaget LM Ericsson 2023 | Second quarter report 2023 | July 14, 2023
© Telefonaktiebolaget LM Ericsson 2023 | Second quarter report 2023 | July 14, 2023
Slide 12: Closing remarks
Closing remarks Börje Ekholm President and CEO © Telefonaktiebolaget LM Ericsson 2023 | Second quarter report 2023 | July 14, 2023
Slide 13: W
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Slide 14: 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,” “anticipate,” “intend,” “likely,” “may,” “could,” “plan,” “estimate,” “forecast,” “will,” “should,” “woul