Telefonaktiebolaget Lm Ericsson Class A · OMXSTO:ERIC_A
Telefonaktiebolaget Lm Ericsson Class A — Ericsson — Q4 2004 Earnings Presentation
12 slides from Telefonaktiebolaget Lm Ericsson Class A's earnings presentation, February 2005
Slide 1: Ericsson & Taking You Forward
ERICSSON & TAKING YOU FORWARD
Slide 2: Fourth Quarter Report
Fourth Quarter Report KARL-HENRIK SUNDSTRÖM CFO 2004
Slide 3: Financial summary
Financial summary (SEK b.) Q403 Q104 Q204 Q304 Q404 2004 Orders, net 29.5 33.0 33.1 29.0 37.9 133.0 Sales 36.2 28.1 32.6 31.8 39.4 132.0 Gross margin (%) 41.6 44.7 47.8 47.1 45.6 46.3 Operating margin (%) 17.5 16.1 22.8* 22.7 24.0 21.9 Income after financial items 5.9 4.3 7.5* 7.0 9.3 28.4 EBITDA (%
Slide 4: Book-to-bill Q4 2004
Book-to-bill Q4 2004 (SEK b.) Seq. % % of Book- Region Orders Sales change sales to-bill Western Europe 12.0 13.2 33% 34% 0.90 CEMA 9.4 9.9 20% 25% 0.95 North America 3.5 2.8 -16% 7% 1.25 Latin America 2.9 4.5 23% 11% 0.65 Asia Pacific 10.0 9.0 37% 23% 1.11 Total 37.9 39.4 24% 100% 0.96 Full year bo
Slide 5: Systems
Systems (SEK b.) Q403 Q104 Q204 Q304 Q404 2004 Orders, net 27.6 31.1 31.2 27.4 35.3 125.0 Sales 33.6 26.1 30.4 29.6 36.8 122.9 Operating income 5.8 4.2 6.3 6.5 8.3 25.3 Operating margin (%) 17.2 16.1 20.8 21.9 22.6 20.6 2003 period adjusted for restructuring costs. Operational excellence © Copyright
Slide 6: Other Operations
Other Operations (SEK b.) Q403 Q104 Q204 Q304 Q404 2004 Orders, net 2.3 2.4 2.7 2.5 2.8 10.4 Sales 3.2 2.4 2.8 2.8 3.3 11.4 Operating income 0.3 0.0 0.6 0.3 0.6 1.5 Operating margin (%) 8.3 1.8 20.0 9.3 18.2 12.9 2003 period adjusted for restructuring costs Continued good performance © Copyright Tel
Slide 7: Strong financial performance
Strong financial performance (SEK b.) Q403 Q104 Q204 Q304 Q404 2004 Net income 0.1 3.0 5.3 4.8 6.0 19.0 Adjustment, income to cash 4.2 1.8 1.7 2.6 2.9 9.0 Income to cash 4.3 4.8 7.0 7.4 8.9 28.0 Working capital 0.4 -1.5 -0.5 -0.9 -2.6 -5.5 Cash flow from operating activities 4.7 3.2 6.5 6.5 6.3 22.5
Slide 8: Operating efficiency trends
Operating efficiency trends 2002 2003 2004 Targets Accounts receivable (SEK b.) 37.4 31.9 32.6 DSO 92 79 75 <90 Inventories (SEK b.) 13.4 11.0 14.0 Inventory turnover 5.1 6.1 5.7 >5.5 Accounts payable (SEK b.) 12.5 9.0 11.0 Payable days 40 37 46 >45 Targets achieved – operational excellence remains
Slide 9: Sony Ericsson
Sony Ericsson 2003 Q403 Q304 Q404 2004 No of units shipped (million) 27.2 8.0 10.7 12.6 42.3 Sales (EUR m.) 4,673 1,437 1,678 2,005 6,525 IBT (EUR m.) -130 46 136 140 486 Net income (EUR m.) -86 43 90 55* 316 Ericsson share in earnings (SEK b.) -0.6 0.2 0.6 0.6 2.1 * Q4 2004 Net income includes a ne
Slide 10: Changes with IFRS
Changes with IFRS Amortization of capitalized development costs No amortization of goodwill Share-based payments Financial instruments © Copyright Telefon AB LM Ericsson 2004. All rights reserved FOURTH QUARTER REPORT 2004
Slide 11: Market outlook 2005
Market outlook 2005 Global mobile systems market to show slight growth* – 2004 strong growth year following pent up demand Good growth in professional services* *All estimates are measured in USD and refer to market growth compared to previous year. This slide contains forward looking statements
Slide 12: Questions & Answers
Fourth Quarter Report QUESTIONS & ANSWERS 2004