15 slides from Telefonaktiebolaget Lm Ericsson Class A's earnings presentation, Jan 25, 2022
Slide 1: Ericsson Fourth quarter 2021
Ericsson Fourth quarter 2021 Jan 25, 2022 © Telefonaktiebolaget LM Ericsson 2022 | Fourth quarter report 2021 | 2022-01-25 | Page 1
Slide 2: Fourth quarter 2021
Fourth quarter 2021 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: Business overview
Business overview Börje Ekholm President and CEO © Telefonaktiebolaget LM Ericsson 2022 | Fourth quarter report 2021 | 2022-01-25 | Page 3
Slide 4: 2021 Highlights
2021 Highlights Delivering on our strategy: ● Expanding the core & Growing in Enterprise – R&D investment for strong portfolio and global leadership in 5G, including Cloud RAN and Massive MIMO – growing market share – Organic growth in existing enterprise investments – including Cradlepoint and crea
Slide 5: Q421: Market Area Development
Q421: Market Area Development Net sales bridge North East Asia: Sales SEK 9.8 (12.8) b. FX adjusted • Market share loss in Mainland China 15% SE Asia, Oceania & India: Sales SEK 8.6 (9.7) b. -22% • Declined due to timing of orders and project milestones 12% Middle East & Africa: Sales SEK 6.9 (6.5)
Slide 6: Segment summary
Segment summary Sales and gross margin Excluding restructuring charges Group and segments 21Q4 20Q4 YoY Organic Gross margin2 rolling 4Q: 43.5%, improved YoY and QoQ Ericsson Group 71.3 69.6 3% 2% Gross margin 43.5% 40.6% Networks Networks 51.1 49.4 4% 3% • Organic sales adjusted for Mainland China:
Slide 7: Financial overview
Financial overview Carl Mellander Chief Financial Officer © Telefonaktiebolaget LM Ericsson 2022 | Fourth quarter report 2021 | 2022-01-25 | Page 7
Slide 8: Q4 2021 in numbers
Q4 2021 in numbers Financial Performance Excluding restructuring charges SEK b. 21Q4 20Q4 YoY 21Q3 ● Organic and FX adjusted sales: +2% YoY Net sales 71.3 69.6 3% 56.3 – Driven by 5G deployments in North America and Organic and FX adj. growth 2% Europe & Latin America Gross margin 43.5% 40.6% 44.0%
Slide 9: FY 2021 in numbers
FY 2021 in numbers Financial Performance Excluding restructuring charges SEK b. 2020 2021 Target Target ● Organic and FX adjusted sales: 4% YoY 2022 long – Adjusted for Mainland China: +8% YoY term ● Gross margin 43.5% (40.6%)2 Net sales 232.4 232.3 – Operational leverage in Networks Gross margin 40
Slide 10: Free cash flow and financial position
Free cash flow and financial position Financial Performance SEK b. Q4 FY ● Free cash flow before M&A of SEK 13.5 (12.8) b. – Improved EBIT and decrease in operating net assets 2021 2020 2021 2020 EBIT excluding restructuring charges 12.3 11.0 32.3 29.1 ● Continued focus on capital efficiency Depreci
Slide 11: Summary
Summary Börje Ekholm President and CEO © Telefonaktiebolaget LM Ericsson 2022 | Fourth quarter report 2021 | 2022-01-25 | Page 11
Slide 12: In closing
In closing Delivering on Strategy ● Incremental growth in core – continued leadership in mobile networks ● Focused expansion into enterprise ● Vonage close expected in Q1/Q2 – creating new markets on top of the 5G network Financial Performance ● Strong cash generation from core business ● Well-posit
Slide 13: © Telefonaktiebolaget LM Ericsson 2022 | Fourth quarter report 2021
© Telefonaktiebolaget LM Ericsson 2022 | Fourth quarter report 2021
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