16 slides from Telefonaktiebolaget Lm Ericsson Class A's earnings presentation, Apr 21, 2021
Slide 1: Me
Me
Slide 2: Peter, Vice President Investor Relations
ain | Peter NY@Uist#!'!), |, Vice President Investor Relation
Slide 3: First quarter 2021
First quarter 2021 Apr 21, 2021 W 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
Slide 4: Börje Ekholm, President and CEO
Borie EH | President and CEO |
Slide 5: Strategy execution
Strategy execution — Strategy built on increased investments in R&D continued to support a strong result in first quarter of 2021 — Continued market share gains — Organic sales growth of 14% adjusted for IPR revenues — Gross margin 42.9%! and EBIT margin 10.7%? driven by Networks — Digital Services
Slide 6: Market share gains
Market share gains -- Net sales bridge 20Q1 Middle East & Africa Reported YoY: -25% Share? of 9 Group sales: North America -5% 34% FX adjusted Europe & Latin America 3% 25% SE Asia Oceania & India 13% 13% NorthEast 21Q1 Asia 66% 13% Strong organic growth in four of the five market areas W Middle Eas
Slide 7: Good market momentum
Good market momentum -- Sales and gross margin Excluding restructuring charges Ericsson Group 49.8 0% 10% Gross margin 40.4% Networks 35.1 3% 15% Gross margin 44.6% Digital Services i ed -6% 3% Gross margin 40.1% Managed Services a 5.7 -15% 8% Gross margin 20.6% Emerging Business & Other 16 11% 9% G
Slide 8: Carl Mellander, Chief Financial Officer
} HHPHHHDNNDDDTHHHINIE ie | Wi | Carl Melldtider'!, A A i | Chief Financial Officer
Slide 9: Continued operating leverage
W Continued operating leverage Excluding restructuring charges -— Financial performance — Organic and FX adjusted sales: 10% YoY SEK b 2101 | 2001 | Yoy | 2004 — Gross margin — All segments improved YoY + YoY — Operational leverage, despite lower IPR Net sales 498 498 0% 69.6 : P 5 ' Ormanicandlesad
Slide 10: Free cash flow and financial position
Free cash flow and financial position r— Financial Performance W SEK b. Q1‘21 EBIT excluding restructuring charges 53 Depreciation, amortization & impairment losses by Restructuring charges -0.1 Changes in operating net assets 3.9 Interest paid & received, taxes paid and other -0.1 Cash flow from op
Slide 11: Planning assumptions highlights
W Planning assumptions highlights Please see the Q1 report for complete planning assumptions Market related — Global RAN equipment market estimated to grow by 3% in FY 2021. China is expected to grow by 4%, North America by 2%, Europe by 3%. Source: Dell'Oro Mobile RAN 5-year forecast report, Jan 20
Slide 12: Börje Ekholm, President and CEO
TTI - . ee Barje EkHotme | We ! President tind CEO |
Slide 13: Entering the growth phase
Entering the growth phase — Investing to create a stronger platform for the long term — Expect continued good momentum throughout 2021 with strong order intake — Continue to invest in further strengthening our portfolio — 5G for IoT and Enterprise offer another attractive growth area — The ongoing g
Slide 14: Q&A
Slide 15: W Ww
W Ww
Slide 16: Forward-looking statements
Forward-looking statements This presentation includes forward-looking statements, including statements reflecting management's current views relating to the growth of the market, future market conditions, future events, financial condition, and expected operational and financial performance, includi