october 16, 2009 - ericsson · 18 external funding to secure the liquidity, facilities of €455m...

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Business updateOctober 16, 2009

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Safe harbour

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 financial results for a better understanding of these risks and uncertainties.

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 financial results for a better understanding of these risks and uncertainties.

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Outgoing PresidentDick Komiyama

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Q309 highlights

Decline in global handset market slowing downDecline in global handset market slowing down

External financing arrangedExternal financing arranged

Positive trend from continuing transformation programmePositive trend from continuing transformation programme

Refreshed brand in time for Aino™

and Satio™

launch in Q4Refreshed brand in time for Aino™

and Satio™

launch in Q4

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Annual market growth

*Million units

1,120

387

500

780

980

620

1,190

407

Market to decrease

by around 10%

Continued challenging market conditionsContinued challenging market conditions

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Q3 activity

Brand realigned to achieve Communication Entertainment vision announced

Brand realigned to achieve Communication Entertainment vision announced

External financing arrangedExternal financing arranged

Addition of ‘Make.Believe’

brand philosophy aligns with Sony consumer proposition announced

Addition of ‘Make.Believe’

brand philosophy aligns with Sony consumer proposition announced

Walkman® W995 successWalkman® W995 success

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Brand realignment

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Spark something…

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GreenHeart™

-

Naite

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Best in class mobile social media experience

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Xperia™

X2

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Jalou

–

D&G edition

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Achievements to date

Opex

reduced by

€500 mil ahead of original planOpex

reduced by

€500 mil ahead of original plan

Approximately a 40% reduction in the number of active products in the portfolio

Approximately a 40% reduction in the number of active products in the portfolio

Significant cost of goods sold reductions accomplishedSignificant cost of goods sold reductions accomplished

More than half of all new devices to be launched in 1H 2010 will be on open platforms and account for around 25% of the active portfolio at that time

More than half of all new devices to be launched in 1H 2010 will be on open platforms and account for around 25% of the active portfolio at that time

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Management changes

Bert Nordberg Bert Nordberg Dick Komiyama Dick Komiyama

Effective October 15, 2009Effective October 15, 2009

Sir Howard StringerSir Howard StringerCarl-Henric

SvanbergCarl-Henric

Svanberg

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PresidentBert Nordberg

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Chief Financial OfficerUlf Lilja

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Q3 2009 –

financial results20092009

Number of units shipped (million)

Q2Q2

Sales (EUR m.)

Gross margin (%)

Operating income (EUR m.)

Operating margin (%)

Restructuring charges (EUR m.)

Operating income excl. restructuring charges (EUR m.)

Operating margin excl. restructuring charges (%)

Income before taxes (IBT) (EUR m.)

IBT excl. restructuring charges (EUR m.)

Net income (EUR m.)

Average selling price (EUR)

24.4

1,6842,820

12%23%

-274-2

8

122

-2136

-28319

-283

-2748

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0% -16%

1

-16%

14.114.1

1,6191,619

16%16%

-193-193

-12%-12%

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-191-191

-12%-12%

-199-199

-198-198

-164-164

114114116

0%

13.8

20082008

Q3Q3

20092009

Q3Q3

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External funding

To secure the liquidity, facilities of €455m have been signed:

Term loans of €155m have been signed and drawn by September 30, 2009

Term loans of €155m have been signed and drawn by September 30, 2009

A term loan of €100m was signed and drawn at the beginning of October

A term loan of €100m was signed and drawn at the beginning of October

A two-year committed, backup facility of €200m was signed in September but not utilised

A two-year committed, backup facility of €200m was signed in September but not utilised

€350m is guaranteed by the parent companies on a 50/50 basis

€350m is guaranteed by the parent companies on a 50/50 basis

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Anders RunevadExecutive vice presidentAnders Runevad

Executive vice presidentDick Komiyama

Outgoing president

Dick Komiyama

Outgoing president

Ulf LiljaChief financial officer

Ulf LiljaChief financial officer

Bert NordbergPresident

Bert NordbergPresident