24 slides from Telefonaktiebolaget Lm Ericsson Class A's earnings presentation, Apr 15, 2025
Slide 1: Ericsson First quarter 2025
Ericsson First quarter 2025 April 15, 2025 © Telefonaktiebolaget LM Ericsson 2025 | First quarter report 2025 | April 15, 2025
Slide 2: First quarter 2025 forward-looking statements
First quarter 2025 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 b
Slide 3: Business Overview
Business Overview Börje Ekholm President and CEO © Telefonaktiebolaget LM Ericsson 2025 | First quarter report 2025 | April 15, 2025
Slide 4: Q1 2025 – Key takeaways
Q1 2025 – Key takeaways ● Good progress on strategic and operational priorities Organic1 sales YoY: ● Extending technology leadership in Mobile Networks – Portfolio of 130 radios supporting programmable networks 0% – First programmable network in Asia Pacific, including 5G Advanced ● Improving comme
Slide 5: Q1 sales development
Q1 sales development Market area net sales Organic growth Networks Cloud Software Enterprise (Q1 2025, SEK b.) (Q1 2025 YoY) and Services 64% 25% 10% % of 2024 net sales Americas1 20.8 20% 34% Europe, Middle East and 14.5 -7% 29% Africa1 South East Asia, 7.2 -17% 13% Oceania and India North East Asi
Slide 6: Financial Overview
Financial Overview Lars Sandström Chief Financial Officer © Telefonaktiebolaget LM Ericsson 2025 | First quarter report 2025 | April 15, 2025
Slide 7: Financial update Q1 2025
Financial update Q1 2025 Financial performance (adjusted) SEK b. Q1-25 Q1-24 YoY Q4-24 Organic sales stable YoY Net sales 55.0 53.3 3% 72.9 • Strong growth in North America of 29% • Stable sales in Europe, other markets declined Organic sales growth 0% Gross income 26.7 22.8 17% 33.7 Adjusted gross
Slide 8: Key financial trends
Key financial trends Sales ● Stable sales again in Q1, supported by growth in market area Americas Adjusted gross margin and adjusted EBITA ● Increased adjusted gross margin and adjusted EBITA margin – Product and market mix – Supply chain efficiency – Cost actions – IPR growth This slide contains f
Slide 9: Mobile Networks Q1 2025
Mobile Networks Q1 2025 Networks Cloud Software and Services ● 3% organic sales growth ● -3% organic sales decline ● Growth in market area Americas YoY, declines elsewhere ● Adjusted gross margin benefited from product mix, ● Adjusted EBITA benefited from higher gross income and commercial disciplin
Slide 10: Enterprise Q1 2025
Enterprise Q1 2025 Enterprise ● 20% reported sales growth in Enterprise Wireless Solutions ● -9% reported sales decline in Global Communications Platform ● Adjusted gross income increased YoY to SEK 3.3 (2.9) b. This slide contains forward-looking statements. Actual result may be materially differen
Slide 11: Cash flow and financial position
Cash flow and financial position FCF before M&A Net cash (SEK) This slide contains forward-looking statements. Actual result may be materially different. See the last page in this presentation for further information about forward-looking statements. © Telefonaktiebolaget LM Ericsson 2025 | First qu
Slide 12: Outlook
Outlook1 There remains increased uncertainty on the outlook for Q2 2025, both in terms of potential for further tariff changes as well as in the broader macroeconomic environment Sales Sales growth in Q2 2025 is expected to be broadly similar to 3-year average Networks seasonality Sales Sales growth
Slide 13: Closing Remarks
Closing Remarks Börje Ekholm President and CEO © Telefonaktiebolaget LM Ericsson 2025 | First quarter report 2025 | April 15, 2025
Slide 14: Summary
Summary ● Looking ahead – Strong competitive position in Mobile Networks – Target Enterprise stabilization during 2025 ● Growing industry focus on network monetization – North America investing in programmable networks – Further network investments needed elsewhere ● External environment increases u
Slide 15: Q&A
Q&A © Telefonaktiebolaget LM Ericsson 2025 | First quarter report 2025 | April 15, 2025
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Slide 17: Appendices
Appendices Appendix 1 – Adjusted gross margin and income development Appendix 2 – Adjusted EBITA development Appendix 3 – Ericsson Mobility Report, November 2024 Appendix 4 – Resilience Appendix 5 – More information © Telefonaktiebolaget LM Ericsson 2025 | First quarter report 2025 | April 15, 2025
Slide 18: Adjusted gross margin and gross income development
Appendix 1 – Adjusted gross margin and gross income development Adjusted gross margin (%) (YoY change) 42.7% 51.0% 39.9% 56.2% 4.2% 48.5% (+6.7 p.p.) (+2.5 p.p.) (+8.1 p.p.) (-14.0 p.p.) Adj. gross income, SEK b. + Adjusted gross income and +3.9 margin increase + Product and market mix + Cost-reduct
Slide 19: Adjusted EBITA margin and EBITA development
Appendix 2 – Adjusted EBITA margin and EBITA development Adjusted EBITA margin (%) (YoY change) 9.6% 21.0% 1.2%% -8.9% -34.6% 12.6% + Adjusted gross income and (+8.3 p.p.) (+3.5 p.p.) (+4.2 p.p.) (-354.1p.p.) margin increase + Stable operating expenses Adj. EBITA, SEK b. +1.8 - Q1 2024 included a on
Slide 20: Ericsson Mobility report, Nov 2024
Appendix 3 – Ericsson Mobility report, Nov 2024 Download the report here and Q4 2024 (Feb 2025) update here World population and mid-band coverage split by region (end of 2024) 5G total 5G mid-band 40% 6.3 B End 2024, 5G mid-band Global 5G mobile World population coverage subscriptions are World (wi
Slide 21: Resilience
Appendix 4 – Resilience Component Component Supply Production Hub/Suppliers Hub Hub This slide contains forward-looking statements. Actual result may be materially different. See Source : Sustainability and Corporate Responsibility Report, 2024 Annual Report. the last page in this presentation for f
Slide 22: More information
Appendix 5 – More information Latest Event Annual General Meeting 2025 Telefonaktiebolaget LM Ericsson's Annual General Meeting (AGM) 2025 was held on Tuesday, March 25, 2025, at 13:00 CET Latest Information First quarter report 2025 Annual Report 2024 Ericsson Investor Relations homepage April 15,
Slide 23: 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,” “foresee,” “anticipate,” “assume,” “intend,” “likely,” “projects,” “may,” “could,” “plan,” “estimate,” “f
Slide 24: om a
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