Telefonaktiebolaget Lm Ericsson Class A · OMXSTO:ERIC_A
Telefonaktiebolaget Lm Ericsson Class A — Ericsson — Q1 2003 Earnings Presentation
17 slides from Telefonaktiebolaget Lm Ericsson Class A's earnings presentation, Apr 29, 2003
Slide 1: First Quarter Report 2003
FIRST QUARTER REPORT 2 0 0 3
Slide 2: Carl-Henric Svanberg, President and CEO
CARL-HENRIC SVANBERG President and CEO FIRST QUARTER REPORT APRIL 29 2 0 0 3
Slide 3: Carl-Henric Svanberg, President and CEO
CARL-HENRIC SVANBERG President and CEO FIRST QUARTER REPORT APRIL 29 2 0 0 3
Slide 4: Initial impressions: Strong crisis awareness
Initial impressions Strong crisis awareness FIRST QUARTER REPORT APRIL 29 2 0 0 3
Slide 5: Initial impressions: Surprisingly high spirit and strong commitment
Initial impressions Surprisingly high spirit and strong commitment FIRST QUARTER REPORT APRIL 29 2 0 0 3
Slide 6: Basic human need: 500,000 new subscribers every day
Basic human need 500,000 new subscribers every day Increased usage Convenience Productivity benefits New entertainment FIRST QUARTER REPORT APRIL 29 2 0 0 3
Slide 7: Q1 highlights
Q1 highlights Sales 25.9 b. – down 30% YoY GSM/WCDMA down 12% YoY WCDMA 12% of mobile systems sales 5 Ericsson supplied 3G networks launched Book-to-bill above one FIRST QUARTER REPORT APRIL 29 2 0 0 3
Slide 8: Q1 highlights
Q1 highlights Gross margin 34.1% +1.5% sequentially Opex reductions well on track Positive cash-flow Maintained ample liquidity FIRST QUARTER REPORT APRIL 29 2 0 0 3
Slide 9: Efficiency programs on plan
Efficiency programs on plan Opex run rate development Headcount development SEK b. 107,000 100 88 82,000 80 76,000 68 72,000 65,000 57 61,000 60 52 54,000 51 47 38 40 20 0 1Q01 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q01 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 FIRST QUARTER REPORT APRIL 29 2 0 0 3
Slide 10: …but increased uncertainty in the market
…but increased uncertainty in the market FIRST QUARTER REPORT APRIL 29 2 0 0 3
Slide 11: Market outlook 2003
Market outlook 2003 Mobile systems market could decline by more than 10% (USD) Continued strong growth in Professional Services market (USD) Increased market uncertainty FIRST QUARTER REPORT APRIL 29 2 0 0 3
Slide 12: …and new opportunities emerge as new landscape surfaces
…and new opportunities . emerge as new landscape . surfaces FIRST QUARTER REPORT APRIL 29 2 0 0 3
Slide 13: We have the technology, the customers, the global presence
We have The technology The customers . The global presence FIRST QUARTER REPORT APRIL 29 2 0 0 3
Slide 14: Yet to establish operational excellence
Yet to establish operational excellence Simplicity Clarity . Responsibility FIRST QUARTER REPORT APRIL 29 2 0 0 3
Slide 15: Additional measures
Additional measures Profitability irrespective of market Opex reductions by SEK 5 b. Cost of sales reductions of SEK 8 b. To be implemented by Q3 2004 Adds SEK 11 b. restructuring charges FIRST QUARTER REPORT APRIL 29 2 0 0 3
Slide 16: Measures to restore profitability
Measures to restore profitability Opex run rate development Headcount development SEK b. 107,000 100 88 82,000 80 76,000 68 72,000 65,000 57 61,000 60 52 51 52,000 47 47,000 38 40 33 20 0 1Q01 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 1Q01 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q
Slide 17: Our way to success
Our way to success Strengthen world leadership Operational excellence Profits and strategic direction FIRST QUARTER REPORT APRIL 29 2 0 0 3