Telefonaktiebolaget LM Ericsson Class A · OMXSTO:ERIC_A
Telefonaktiebolaget LM Ericsson Class A — Ericsson — Q3 2004 Earnings Presentation
12 slides from Telefonaktiebolaget LM Ericsson Class A's earnings presentation, October 2004
Slide 1: Third Quarter Report 2004
hird uarter eport 2004 ERICSSON &
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward looking statements. Such statements are based on our current expectations and are subject to certain risks and uncertainties that could negatively affect our business. Please read our earnings reports and our most recent annual report for a be
Slide 3: Third Quarter Report
Third Quarter Report KARL-HENRIK SUNDSTRÖM CFO
Slide 4: Financial summary
Financial summary (SEK b.) YoY % Q303 Q204 Q304 change Orders, net 28.1 33.1 29.0 3% Sales 28.0 32.6 31.8 14% Gross margin (%) 35.9 47.8 47.1 Operating margin (%) 5.2 22.8 * 22.7 Income after financial items 1.1 7.5 * 7.0 EBITDA (%) 9.6 26.4 * 26.8 *Adjusted to exclude a one-time positive effect of
Slide 5: Book-to-bill Q3 2004
Book-to-bill Q3 2004 (SEK b.) YoY % % of Book- Region Orders Sales change sales to-bill Western Europe 8.1 10.0 26% 31% 0.81 CEMA 7.7 8.2 33% 26% 0.94 North America 2.5 3.3 -22% 10% 0.74 Latin America 4.5 3.7 38% 12% 1.22 Asia Pacific 6.2 6.6 -5% 21% 0.94 Total 29.0 31.8 14% 100% 0.91 YTD book-to-bi
Slide 6: Systems
Systems (SEK b.) YoY % Q303 Q204 Q304 change Orders 26.5 31.2 27.4 3% Sales 25.9 30.4 29.6 14% Operating income 1.4 6.3 6.5 Operating margin(%) 5.3 20.8 21.9 Systems operating margin exceeds historical high © Copyright Telefon AB LM Ericsson 2004. All rights reserved THIRD QUARTER REPORT 2004 6
Slide 7: Other operations
Other operations (SEK b.) YoY % Q303 Q204 Q304 change Orders 2.0 2.7 2.5 25% Sales 2.5 2.8 2.8 13% Operating income 0.1 0.6 0.3 Operating margin (%) 5.4 20.0 9.3 Operating margin decline mainly due to redundancy costs © Copyright Telefon AB LM Ericsson 2004. All rights reserved THIRD QUARTER REPORT
Slide 8: Strong financial performance
Strong financial performance (SEK b.) Q303 Q204 Q304 Net income -3.9 5.3 4.8 Adj. income to cash 0.5 1.7 2.6 Income to cash -3.5 7.0 7.4 Working capital 13.4 -0.5 -0.9 Cash flow from operating activities 9.9 6.5 6.5 Investing activities -0.8 -2.2 -1.3 Cash flow before financing activities 9.1 4.3* 5
Slide 9: Operating efficiency trends
Operating efficiency trends Q303 Q204 Q304 Accounts receivable (SEK b.) 29.0 31.8 31.0 DSO 93 88 88 Inventories* (SEK b.) 11.4 14.8 16.5 Inventory turnover 5.7 5.1 4.8 Accounts payable (SEK b.) 8.6 9.7 9.9 Payable days 43 52 53 * Including work in progress Work in progress reflect increased level of
Slide 10: Sony Ericsson
Sony Ericsson Q303 Q204 Q304 Number of units shipped (million) 7.1 10.4 10.7 Sales (EUR m.) 1,305 1,504 1,678 IBT 39 113 136 Net income 62 89 91 Ericsson share in earnings (SEK b.) 0.2* 0.5 0.6 *Including restructuring cost of SEK -0.3 b. Innovative products drive growth © Copyright Telefon AB LM Er
Slide 11: Market outlook 2004/2005
Market outlook 2004/2005 2004 global mobile systems market* – Catch up effect has started to abate 2005 global mobile systems market* – Slight market growth, 2004 catch up effect included – Moderate underlying market growth Good growth in professional services market* *All estimates are measur
Slide 12: Third Quarter Report 2004
hird uarter eport 2004 ERICSSON &