14 slides from Telefonaktiebolaget Lm Ericsson Class A's earnings presentation, Jan 23, 2024
Slide 1: Ericsson Fourth quarter 2023
Ericsson Fourth quarter 2023 January 23, 2024 © Telefonaktiebolaget LM Ericsson 2024 | Fourth quarter report 2023 | January 23, 2024
Slide 2: Fourth quarter 2023 forward-looking statements
Fourth quarter 2023 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 2024 | Fourth quarter report 2023 | January 23, 2024
Slide 4: 2023 – Key takeaways
2023 – Key takeaways Organic sales YoY: ● Solid results despite difficult market conditions and challenges ● Continued focus on strategy execution -10% – Historic 5-year USD 14 b. contract in mobile networks Gross margin1: – Cloud Software and Services delivered FY positive EBITA – Industry mileston
Slide 5: Ericsson strategy
Ericsson strategy Superior experience for consumers Reliable & easy to use solutions for businesses Capabilities for developers Customer success Best performance for differentiated networks, relentless efficiency and growth in an open world Businesses Leadership in mobile networks Focused expansion
Slide 6: Financial overview
Financial overview Carl Mellander Chief Financial Officer © Telefonaktiebolaget LM Ericsson 2024 | Fourth quarter report 2023 | January 23, 2024
Slide 7: Financial update Q4 2023
Financial update Q4 2023 Financial Performance Excluding restructuring charges ● Organic and FX adjusted sales: -17% YoY SEK b. 23Q4 22Q4 YoY 23Q3 – Networks -23% decline and Cloud Software and Services -4% decline slightly offset by 7% growth in Net sales 71.9 86.0 -20% 64.5 Enterprise Organic and
Slide 8: FY 2023 in numbers
FY 2023 in numbers Financial Performance Excluding restructuring charges ● Organic and FX adjusted sales: -10% YoY SEK b. 2023 2022 Long-term ● Gross margin 39.6% (41.8%)2 target – Networks: decline in N. America, changed business mix Net sales 263.4 271.5 – Cloud Software and Services: increase dri
Slide 9: Outlook
Outlook1 • Networks: Average seasonality between Q4 and Q1 last 3 years: -25%. Sales • Cloud Software and Services: Average seasonality between Q4 and Q1 last 3 years: -34%. Gross margin • Networks: Gross margin2 expected to be in the range of 39-41% in Q1 2024. Operating • Average seasonality expec
Slide 10: Closing remarks
Closing remarks Börje Ekholm President and CEO © Telefonaktiebolaget LM Ericsson 2024 | Fourth quarter report 2023 | January 23, 2024
Slide 11: Summary
Summary ● Executing on strategy to put Ericsson on higher growth trajectory: – extending our leadership in mobile networks – growing our enterprise business – driving lasting cultural transformation ● Taking actions to navigate the near term, ensuring Ericsson continues to be well positioned ● Build
Slide 12: Q&A
Q&A © Telefonaktiebolaget LM Ericsson 2024 | Fourth quarter report 2023 | January 23, 2024
Slide 13: W
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Slide 14: 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”, “anticipate”, “intend”, “likely”, “may”, “could”, “plan”, “estimate”, “forecast”, “will”, “should”, “woul