october 16, 2009 - ericsson · 18 external funding to secure the liquidity, facilities of €455m...
TRANSCRIPT
1
Business updateOctober 16, 2009
2
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
5
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
6
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
13
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
11
0% -16%
1
-16%
14.114.1
1,6191,619
16%16%
-193-193
-12%-12%
22
-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