Sony EricssonSony Ericsson

October 17, 2008October 17, 2008

Business updateBusiness update

Safe harbor statementSafe harbor statement

This presentation contains forward looking statements. Such statements are based on our current expectations

and are subject to certain risks and uncertainties thatcould negatively affect our business.

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

Business updateBusiness update

Ulf LiljaChief Financial Officer

Ulf LiljaChief Financial Officer

Dick Komiyama President

Dick Komiyama President

Anders RunevadExecutive Vice President

Anders RunevadExecutive Vice President

Dick Komiyama Dick Komiyama

Business update / October 17, 2008Business update / October 17, 2008

PresidentPresident

Break even results, excluding restructuring charges, asChallenging business conditions continued

Break even results, excluding restructuring charges, asChallenging business conditions continued

Expansion of music service offering with announcement of PlayNow™ plus

Expansion of music service offering with announcement of PlayNow™ plus

First Xperia™ branded, multimedia phone; X1 starts shipping

First Xperia™ branded, multimedia phone; X1 starts shipping

Highlights of third quarter, 2008Highlights of third quarter, 2008

C902 Cyber-shot™ camera phone is hit model of the quarter C902 Cyber-shot™ camera phone is hit model of the quarter

~10 %

Market trends

2001 2002 2003 2004 2005 2006 2007 2008

2008 total is an estimate*Million units

>1.1 bn

980

780

620

500407

387

Our approach to transformation

TRANSFORMATIONEnsure long-term competitiveness

PERFORMANCE

Optimise 2008 performance and secure

deliverables

COST EFFICIENCY

Align fixed, operational costs to the new market

reality

STRATEGY

Align Sony Ericsson’s market, portfolio,

platform and capability requirements

Doing what we do best

Increased innovation

Focused and profitable growth

Foundations for future growth

123

Alignment of operations and resources completed by first half, 2009

Alignment of operations and resources completed by first half, 2009

Aim to reduce costs by 300 million EUROby the end of second quarter, 2009

Aim to reduce costs by 300 million EUROby the end of second quarter, 2009

Full effect of cost savings expected to appear by second-half, 2009

Full effect of cost savings expected to appear by second-half, 2009

What happens next?

Sony Ericsson has become the official Mobile Phone Handset of the 2010 FIFA World Cup™

Sony Ericsson and FIFA

Products• Successful introduction of the C902

• X1 globally launched during London Design Festival in late September

Global take-back schemeSony Ericsson launched its own global, recycling collection points for unused mobile phones. More than 500 collection points are already in operation.

PlayNow™ plus

An ‘all-you-can-eat’, unlimited access, music service launched September, 2008

Achievements

Q3 phones launched:Q3 phones launched:

Q3 phones announced:Q3 phones announced:

W595 W902 W302 G705T700

W980 W350 R300 R306 T303 T700 TM506 K330 J132 X1

TM506

Continued economic uncertaintyContinued economic uncertainty

Continued competitionat high-end

Continued competitionat high-end

Challenging market conditions to prevail for Sony Ericsson

Challenging market conditions to prevail for Sony Ericsson

Future outlook

Ulf LiljaUlf Lilja

Financial statements and additional information Financial statements and additional information

Chief Financial OfficerChief Financial Officer

Consolidated income statement

Consolidated income statement – isolated quarters

Consolidated balance sheet

Consolidated statement of cash flows

Consolidated statement of cash flows – isolated quarters

Net sales by market area by quarter

Financial statements and additional information

Q3 2008 – financial results

-33-33

22

109109

20072007 20082008

22%

12

88384384 -23-23

Operating income (OI) (EUR m.)

25.7

-25

OI excl. restructuring charges (Euro m.)

IBT excl. restructuring charges (EUR m.)

Net income (EUR m.)

ASP (EUR)

Sales (EUR m.)

Gross margin (%)

Units shipped (m.)

2,808

-2

23%

2,820

24.4

19

8

6

116

25.9

3,108

31%

393

384

393

267

120

Q3 Q2 Q3

2008

Income before taxes (IBT) (Euro m.)

Ulf LiljaChief Financial Officer

Ulf LiljaChief Financial Officer

Dick Komiyama President

Dick Komiyama President

Anders RunevadExecutive Vice PresidentAnders Runevad

Executive Vice President