SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN ISSUER
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
January 27, 2017
Commission File Number
000-12033
LM ERICSSON TELEPHONE COMPANY
(Translation of registrants name into English)
Torshamnsgatan 21, Kista
SE-164 83, Stockholm, Sweden
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐
THIS REPORT ON FORM 6-K SHALL BE DEEMED TO BE INCORPORATED BY REFERENCE IN THE REGISTRATION STATEMENTS ON FORM F-3 (NO. 333-203977) AND ON FORM S-8 (Nos. 333-196453, 333-161683 AND 333-161684 ) OF TELEFONAKTIEBOLAGET LM ERICSSON (PUBL.) AND TO BE A PART THEREOF FROM THE DATE ON WHICH THIS REPORT IS FURNISHED TO THE SECURITIES AND EXCHANGE COMMISSION, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED WITH OR FURNISHED TO THE SECURITIES AND EXCHANGE COMMISSION.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
TELEFONAKTIEBOLAGET LM ERICSSON (publ) | ||
By: | /s/ NINA MACPHERSON | |
Nina Macpherson | ||
Senior Vice President and | ||
General Counsel | ||
By: | /s/ HELENA NORRMAN | |
Helena Norrman | ||
Senior Vice President | ||
Corporate Communications |
Date: January 27, 2017
FOURTH QUARTER AND
FULL-YEAR REPORT 2016,
as adjusted for incorporation by reference
Stockholm, January 26, 2017
FOURTH QUARTER HIGHLIGHTS |
Read more | |||
| Reported sales decreased by -11% YoY, with SEK -5.5 b. lower IPR licensing revenues. | 2 | ||
| Despite strong sequential sales growth in Networks, the underlying market remained weak in the fourth quarter. | 2 | ||
| Gross margin was 26.1% (36.3%). | 3 | ||
| Operating income was SEK -0.3 (11.0) b. | 4 | ||
| The cost and efficiency program is tracking towards target. The execution pace was faster than predicted in the quarter, resulting in full-year restructuring charges of SEK 7.6 b. compared with estimated SEK 5.5-6.5 b. | 2 | ||
| The baseline for current IPR licensing contract portfolio is approximately SEK 7 b. on an annual basis. Smartphone volumes, new agreements and IoT licensing will determine growth opportunities going forward. | 2 | ||
| Cash flow from operating activities was SEK 19.4 (21.9) b. supported by reduced operating assets. | 2 | ||
| Effective January 16, 2017, Börje Ekholm assumed the position of President and CEO. | 17 | ||
FULL YEAR HIGHLIGHTS |
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| Reported sales decreased by -10% mainly due to weaker demand for mobile broadband, especially in markets with a weak macroeconomic environment. IPR licensing revenues declined to SEK 10.0 (14.4) b. | 3 | ||
| Operating income declined to SEK 6.3 (21.8) b. due to lower sales and a changed business mix in mobile broadband, with a lower proportion of capacity business. This was partly offset by lower operating expenses. | 2 | ||
| Cash flow from operating activities was SEK 14.0 (20.6) b. Net cash at year-end was SEK 31.2 b. | 2 | ||
| The Board of Directors will propose a dividend for 2016 of SEK 1.00 (3.70) per share to the AGM. | 9 |
SEK b. |
Q4 2016 |
Q4 2015 |
YoY change |
Q3 2016 |
QoQ change |
Full year 2016 |
Full year 2015 |
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Net sales |
65.2 | 73.6 | -11 | % | 51.1 | 28 | % | 222.6 | 246.9 | |||||||||||||||||||
Gross margin |
26.1 | % | 36.3 | % | | 28.3 | % | | 29.8 | % | 34.8 | % | ||||||||||||||||
Operating income |
-0.3 | 11.0 | -103 | % | 0.3 | -182 | % | 6.3 | 21.8 | |||||||||||||||||||
Operating margin |
-0.4 | % | 15.0 | % | | 0.7 | % | | 2.8 | % | 8.8 | % | ||||||||||||||||
Net income |
-1.6 | 7.0 | -123 | % | -0.2 | | 1.9 | 13.7 | ||||||||||||||||||||
EPS diluted, SEK |
-0.48 | 2.15 | -122 | % | -0.07 | | 0.52 | 4.13 | ||||||||||||||||||||
Cash flow from operating activities |
19.4 | 21.9 | -11 | % | -2.3 | | 14.0 | 20.6 |
1 Ericsson | Fourth Quarter and Full-Year Report 2016
CEO COMMENTS
2 Ericsson | Fourth Quarter and Full-Year Report 2016
FINANCIAL HIGHLIGHTS
SEK b. |
Q4 2016 |
Q4 2015 |
YoY change |
Q3 2016 |
QoQ change |
Full year 2016 |
Full year 2015 |
|||||||||||||||||||||
Net sales |
65.2 | 73.6 | -11 | % | 51.1 | 28 | % | 222.6 | 246.9 | |||||||||||||||||||
Of which Networks |
32.4 | 37.3 | -13 | % | 23.3 | 39 | % | 108.3 | 123.7 | |||||||||||||||||||
Of which Global Services |
29.4 | 30.7 | -4 | % | 24.8 | 19 | % | 101.7 | 108.0 | |||||||||||||||||||
Of which Support Solutions |
3.4 | 5.6 | -39 | % | 2.9 | 16 | % | 12.5 | 15.0 | |||||||||||||||||||
Of which Modems |
| | | | | | 0.1 | |||||||||||||||||||||
Gross income |
17.0 | 26.7 | -36 | % | 14.5 | 18 | % | 66.4 | 85.8 | |||||||||||||||||||
Gross margin (%) |
26.1 | % | 36.3 | % | | 28.3 | % | | 29.8 | % | 34.8 | % | ||||||||||||||||
Research and development expenses |
-8.9 | -7.9 | 12 | % | -7.9 | 13 | % | -31.6 | -34.8 | |||||||||||||||||||
Selling and administrative expenses |
-8,8 | -8.0 | 10 | % | -6.2 | 41 | % | -28.9 | -29.3 | |||||||||||||||||||
Other operating income and expenses |
0.4 | 0.3 | 43 | % | 0.0 | | 0.4 | 0.2 | ||||||||||||||||||||
Operating income |
-0.3 | 11.0 | -103 | % | 0.3 | -182 | % | 6.3 | 21.8 | |||||||||||||||||||
Operating margin |
-0.4 | % | 15.0 | % | | 0.7 | % | | 2.8 | % | 8.8 | % | ||||||||||||||||
for Networks |
2 | % | 19 | % | | -1 | % | | 4 | % | 10 | % | ||||||||||||||||
for Global Services |
1 | % | 8 | % | | 4 | % | | 3 | % | 8 | % | ||||||||||||||||
for Support Solutions |
-12 | % | 30 | % | | -12 | % | | -8 | % | 10 | % | ||||||||||||||||
for Modems |
| | | | | | | |||||||||||||||||||||
Financial net |
-0.7 | -0.7 | -6 | % | -0.6 | 14 | % | -2.3 | -1.9 | |||||||||||||||||||
Taxes |
-0.6 | -3.3 | -81 | % | 0.1 | | -2.1 | -6.2 | ||||||||||||||||||||
Net income |
-1.6 | 7.0 | -123 | % | -0.2 | | 1.9 | 13.7 | ||||||||||||||||||||
Restructuring charges |
-4.6 | -0.7 | | -1.3 | | -7.6 | -5.0 |
FOURTH QUARTER COMMENTS
3 Ericsson | Fourth Quarter and Full-Year Report 2016
4 Ericsson | Fourth Quarter and Full-Year Report 2016 |
FULL-YEAR COMMENTS
5 Ericsson | Fourth Quarter and Full-Year Report 2016 |
REGIONAL SALES
Fourth quarter 2016 | Change | Full year 2016 | Change | |||||||||||||||||||||||||||||
SEK b. |
Networks | Global Services |
Support Solutions |
Total | YoY | QoQ | Total | YoY | ||||||||||||||||||||||||
North America |
7.9 | 6.2 | 0.8 | 14.9 | -13 | % | 13 | % | 54.7 | -6 | % | |||||||||||||||||||||
Latin America |
1.9 | 2.8 | 0.3 | 5.0 | -19 | % | 13 | % | 17.9 | -16 | % | |||||||||||||||||||||
Northern Europe and Central Asia |
1.4 | 1.3 | 0.1 | 2.7 | -5 | % | 33 | % | 9.1 | -15 | % | |||||||||||||||||||||
Western and Central Europe |
1.3 | 2.7 | 0.2 | 4.2 | -21 | % | 19 | % | 16.2 | -18 | % | |||||||||||||||||||||
Mediterranean |
2.2 | 4.2 | 0.3 | 6.6 | -5 | % | 46 | % | 20.9 | -10 | % | |||||||||||||||||||||
Middle East |
2.7 | 3.4 | 0.3 | 6.4 | 5 | % | 49 | % | 19.2 | -16 | % | |||||||||||||||||||||
Sub-Saharan Africa |
1.3 | 1.3 | 0.1 | 2.7 | -4 | % | 36 | % | 9.2 | -11 | % | |||||||||||||||||||||
India |
1.9 | 1.0 | 0.1 | 3.0 | -4 | % | 17 | % | 10.7 | -20 | % | |||||||||||||||||||||
North East Asia |
6.5 | 2.9 | 0.2 | 9.6 | 8 | % | 57 | % | 27.4 | -3 | % | |||||||||||||||||||||
South East Asia and Oceania |
3.6 | 3.0 | 0.1 | 6.7 | 25 | % | 32 | % | 22.2 | 15 | % | |||||||||||||||||||||
Other 1) |
1.8 | 0.7 | 0.9 | 3.3 | -63 | % | 2 | % | 15.1 | -23 | % | |||||||||||||||||||||
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Total |
32.4 | 29.4 | 3.4 | 65.2 | -11 | % | 28 | % | 222.6 | -10 | % | |||||||||||||||||||||
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1) | Region Other includes licensing revenues, broadcast services, power modules, mobile broadband modules, Ericsson-LG Enterprise and other businesses. |
FOURTH QUARTER AND FULL-YEAR COMMENTS
6 Ericsson | Fourth Quarter and Full-Year Report 2016
7 Ericsson | Fourth Quarter and Full-Year Report 2016
SEGMENT RESULTS
NETWORKS
SEK b. |
Q4 2016 |
Q4 2015 |
YoY change |
Q3 2016 |
QoQ change |
Full year 2016 |
Full year 2015 |
|||||||||||||||||||||
Net sales |
32.4 | 37.3 | -13 | % | 23.3 | 39 | % | 108.3 | 123.7 | |||||||||||||||||||
Operating income |
0.7 | 7.2 | -91 | % | -0.3 | | 4.7 | 12.9 | ||||||||||||||||||||
Operating margin |
2 | % | 19 | % | | -1 | % | | 4 | % | 10 | % | ||||||||||||||||
Restructuring charges |
-2.5 | -0.3 | | -0.6 | | -4.0 | -2.8 |
FOURTH QUARTER COMMENTS
8 Ericsson | Fourth Quarter and Full-Year Report 2016
FULL-YEAR COMMENTS
9 Ericsson | Fourth Quarter and Full-Year Report 2016
GLOBAL SERVICES
SEK b. |
Q4 2016 |
Q4 2015 |
YoY change |
Q3 2016 |
QoQ change |
Full year 2016 |
Full year 2015 |
|||||||||||||||||||||
Net sales |
29.4 | 30.7 | -4 | % | 24.8 | 19 | % | 101.7 | 108.0 | |||||||||||||||||||
Of which Professional Services |
21.5 | 23.1 | -7 | % | 18.7 | 15 | % | 76.8 | 81.7 | |||||||||||||||||||
Of which Managed Services |
6.9 | 8.2 | -17 | % | 7.2 | -4 | % | 28.7 | 31.8 | |||||||||||||||||||
Of which Network Rollout |
8.0 | 7.6 | 5 | % | 6.1 | 31 | % | 24.9 | 26.3 | |||||||||||||||||||
Operating income |
0.2 | 2.5 | -93 | % | 1.0 | -81 | % | 3.3 | 8.2 | |||||||||||||||||||
Of which Professional Services |
0.8 | 2.7 | -69 | % | 1.4 | -40 | % | 5.2 | 9.6 | |||||||||||||||||||
Of which Network Rollout |
-0.7 | -0.2 | | -0.4 | 61 | % | -1.9 | -1.4 | ||||||||||||||||||||
Operating margin |
1 | % | 8 | % | | 4 | % | | 3 | % | 8 | % | ||||||||||||||||
for Professional Services |
4 | % | 12 | % | | 7 | % | | 7 | % | 12 | % | ||||||||||||||||
for Network Rollout |
-8 | % | -2 | % | | -7 | % | | -8 | % | -5 | % | ||||||||||||||||
Restructuring charges |
-1.7 | -0.2 | | -0.6 | | -3.0 | -1.7 |
FOURTH QUARTER COMMENTS
10 Ericsson | Fourth Quarter and Full-Year Report 2016
FULL-YEAR COMMENTS
Q4 2016 |
Q3 2016 |
Q2 2016 |
Q1 2016 |
Full year 2016 |
Full year 2015 |
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Number of signed Managed Services contracts |
20 | 15 | 20 | 21 | 76 | 101 | ||||||||||||||||||
Number of signed significant consulting & systems integration contracts 1) |
19 | 19 | 18 | 13 | 69 | 66 |
1) | In the areas of OSS and BSS, IP, Service Delivery Platforms and data center build projects. |
11 Ericsson | Fourth Quarter and Full-Year Report 2016
SUPPORT SOLUTIONS
SEK b. |
Q4 2016 |
Q4 2015 |
YoY change |
Q3 2016 |
QoQ change |
Full year 2016 |
Full year 2015 |
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Net sales |
3.4 | 5.6 | -39 | % | 2.9 | 16 | % | 12.5 | 15.0 | |||||||||||||||||||
Operating income |
-0.4 | 1.7 | -125 | % | -0.4 | 19 | % | -1.0 | 1.5 | |||||||||||||||||||
Operating margin |
-12 | % | 30 | % | | -12 | % | | -8 | % | 10 | % | ||||||||||||||||
Restructuring charges |
-0.3 | -0.2 | 41 | % | 0.0 | | -0.4 | -0.5 |
12 Ericsson | Fourth Quarter and Full-Year Report 2016
CASH FLOW
SEK b. |
Q4 2016 |
Q4 2015 |
Q3 2016 |
Full year 2016 |
Full year 2015 |
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Net income reconciled to cash |
1.6 | 11.0 | 1.5 | 8.0 | 24.3 | |||||||||||||||
Changes in operating net assets |
17.9 | 10.9 | -3.8 | 6.0 | -3.7 | |||||||||||||||
Cash flow from operating activities |
19.4 | 21.9 | -2.3 | 14.0 | 20.6 | |||||||||||||||
Cash flow from investing activities |
-6.6 | -12.8 | -2.0 | -8.3 | -8.0 | |||||||||||||||
Cash flow from financing activities |
-1.0 | -0.7 | -1.5 | -11.7 | -10.7 | |||||||||||||||
Net change in cash and cash equivalents |
12.6 | 6.3 | -4.5 | -3.3 | -0.8 |
FOURTH QUARTER COMMENTS
Working capital KPIs, number of days |
Jan-Dec 2016 |
Jan-Sep 2016 |
Jan-Jun 2016 |
Jan-Mar 2016 |
Jan-Dec 2015 |
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Sales outstanding (target: <90) |
95 | 122 | 115 | 108 | 87 | |||||||||||||||
Inventory (target: <65) |
69 | 79 | 81 | 80 | 64 | |||||||||||||||
Payable (target: >60) |
56 | 56 | 59 | 58 | 53 |
FULL-YEAR COMMENTS
13 Ericsson | Fourth Quarter and Full-Year Report 2016
FINANCIAL POSITION
SEK b. |
Dec 31 2016 |
Sep 30 2016 |
Jun 30 2016 |
Mar 31 2016 |
Dec 31 2015 |
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+ Cash and cash equivalents |
37.0 | 24.4 | 28.9 | 35.9 | 40.2 | |||||||||||||||
+ Interest-bearing securities, current |
13.3 | 18.7 | 19.8 | 25.1 | 26.0 | |||||||||||||||
+ Interest-bearing securities, non-current |
7.6 | 0.5 | | | | |||||||||||||||
Equity |
140.5 | 134.0 | 136.7 | 145.6 | 147.4 | |||||||||||||||
Total assets |
283.3 | 275.7 | 277.4 | 280.3 | 284.4 |
FOURTH QUARTER COMMENTS
14 Ericsson | Fourth Quarter and Full-Year Report 2016
DIVIDEND, AGM
AND ANNUAL REPORT
15 Ericsson | Fourth Quarter and Full-Year Report 2016
OTHER INFORMATION
16 Ericsson | Fourth Quarter and Full-Year Report 2016
RISK FACTORS
17 Ericsson | Fourth Quarter and Full-Year Report 2016
AUDITORS REVIEW REPORT
18 Ericsson | Fourth Quarter and Full-Year Report 2016
EDITORS NOTE
19 Ericsson | Fourth Quarter and Full-Year Report 2016
SAFE HARBOR STATEMENT
20 Ericsson | Fourth Quarter and Full-Year Report 2016
ADDITIONAL INFORMATION
21 Ericsson | Fourth Quarter and Full-Year Report 2016
Oct-Dec | Jan-Dec | |||||||||||||||||||||||
SEK million |
2016 | 2015 | Change | 2016 | 2015 | Change | ||||||||||||||||||
Net sales |
65,215 | 73,568 | -11 | % | 222,608 | 246,920 | -10 | % | ||||||||||||||||
Cost of sales |
-48,195 | -46,899 | 3 | % | -156,243 | -161,101 | -3 | % | ||||||||||||||||
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Gross income |
17,020 | 26,669 | -36 | % | 66,365 | 85,819 | -23 | % | ||||||||||||||||
Gross margin (%) |
26.1 | % | 36.3 | % | 29.8 | % | 34.8 | % | ||||||||||||||||
Research and development expenses |
-8,890 | -7,921 | 12 | % | -31,635 | -34,844 | -9 | % | ||||||||||||||||
Selling and administrative expenses |
-8,799 | -7,996 | 10 | % | -28,866 | -29,285 | -1 | % | ||||||||||||||||
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Operating expenses |
-17,689 | -15,917 | 11 | % | -60,501 | -64,129 | -6 | % | ||||||||||||||||
Other operating income and expenses |
364 | 254 | 404 | 153 | ||||||||||||||||||||
Shares in earnings of JV and associated companies |
25 | 29 | 31 | -38 | ||||||||||||||||||||
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Operating income |
-280 | 11,035 | -103 | % | 6,299 | 21,805 | -71 | % | ||||||||||||||||
Financial income |
61 | -109 | -115 | 525 | ||||||||||||||||||||
Financial expenses |
-744 | -619 | -2,158 | -2,458 | ||||||||||||||||||||
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Income after financial items |
-963 | 10,307 | -109 | % | 4,026 | 19,872 | -80 | % | ||||||||||||||||
Taxes |
-634 | -3,329 | -2,131 | -6,199 | ||||||||||||||||||||
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Net income |
-1,597 | 6,978 | -123 | % | 1,895 | 13,673 | -86 | % | ||||||||||||||||
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Net income attributable to: |
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Stockholders of the Parent Company |
-1,604 | 7,056 | 1,716 | 13,549 | ||||||||||||||||||||
Non-controlling interests |
7 | -78 | 179 | 124 | ||||||||||||||||||||
Other information |
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Average number of shares, basic (million) |
3,268 | 3,254 | 3,263 | 3,249 | ||||||||||||||||||||
Earnings per share, basic (SEK) 1) |
-0.49 | 2.17 | 0.53 | 4.17 | ||||||||||||||||||||
Earnings per share, diluted (SEK) 1) |
-0.48 | 2.15 | 0.52 | 4.13 |
1) | Based on Net income attributable to stockholders of the Parent Company. |
STATEMENT OF COMPREHENSIVE INCOME
Oct-Dec | Jan-Dec | |||||||||||||||
SEK million |
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net income |
-1,597 | 6,978 | 1,895 | 13,673 | ||||||||||||
Other comprehensive income |
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Items that will not be reclassified to profit or loss |
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Remeasurements of defined benefits pension plans incl. asset ceiling |
8,024 | 3,860 | -1,766 | -2,026 | ||||||||||||
Tax on items that will not be reclassified to profit or loss |
-1,886 | -797 | 520 | 721 | ||||||||||||
Items that may be reclassified to profit or loss |
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Available-for-sale financial assets |
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Gains/losses arising during the period |
-7 | | -7 | | ||||||||||||
Revaluation of other investments in shares and participations |
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Fair value remeasurement |
2 | 216 | -2 | 457 | ||||||||||||
Changes in cumulative translation adjustments |
1,867 | -1,141 | 4,235 | -604 | ||||||||||||
Share of other comprehensive income on JV and associated companies |
-7 | | -362 | 141 | ||||||||||||
Tax on items that may be reclassified to profit or loss |
1 | | 1 | | ||||||||||||
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Total other comprehensive income, net of tax |
7,994 | 2,138 | 2,619 | -1,311 | ||||||||||||
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Total comprehensive income |
6,397 | 9,116 | 4,514 | 12,362 | ||||||||||||
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Total comprehensive income attributable to: |
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Stockholders of the Parent Company |
6,406 | 9,173 | 4,285 | 12,218 | ||||||||||||
Non-controlling interest |
-9 | -57 | 229 | 144 |
22 Ericsson | Fourth Quarter and Full-Year Report 2016
SEK million |
Dec 31 2016 |
Sep 30 2016 |
Dec 31 2015 |
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ASSETS |
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Non-current assets |
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Intangible assets |
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Capitalized development expenses |
8,076 | 7,437 | 5,493 | |||||||||
Goodwill |
43,387 | 41,976 | 41,087 | |||||||||
Intellectual property rights, brands and other intangible assets |
7,747 | 8,076 | 9,316 | |||||||||
Property, plant and equipment |
16,734 | 17,082 | 15,901 | |||||||||
Financial assets |
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Equity in JV and associated companies |
775 | 761 | 1,210 | |||||||||
Other investments in shares and participations |
1,179 | 1,188 | 1,275 | |||||||||
Customer finance, non-current |
2,128 | 1,989 | 1,739 | |||||||||
Interest-bearing securities, non-current |
7,586 | 540 | | |||||||||
Other financial assets, non-current |
4,442 | 4,310 | 5,634 | |||||||||
Deferred tax assets |
15,522 | 17,383 | 13,183 | |||||||||
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107,576 | 100,742 | 94,838 | ||||||||||
Current assets |
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Inventories |
30,307 | 34,140 | 28,436 | |||||||||
Trade receivables |
68,117 | 70,370 | 71,069 | |||||||||
Customer finance, current |
2,625 | 2,644 | 2,041 | |||||||||
Other current receivables |
24,431 | 24,758 | 21,709 | |||||||||
Interest-bearing securities, current |
13,325 | 18,663 | 26,046 | |||||||||
Cash and cash equivalents |
36,966 | 24,401 | 40,224 | |||||||||
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175,771 | 174,976 | 189,525 | ||||||||||
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Total assets |
283,347 | 275,718 | 284,363 | |||||||||
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EQUITY AND LIABILITIES |
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Equity |
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Stockholders equity |
139,817 | 133,138 | 146,525 | |||||||||
Non-controlling interest in equity of subsidiaries |
675 | 874 | 841 | |||||||||
|
|
|
|
|
|
|||||||
140,492 | 134,012 | 147,366 | ||||||||||
Non-current liabilities |
||||||||||||
Post-employment benefits |
23,723 | 32,463 | 22,664 | |||||||||
Provisions, non-current |
946 | 170 | 176 | |||||||||
Deferred tax liabilities |
2,147 | 2,052 | 2,472 | |||||||||
Borrowings, non-current |
18,653 | 18,283 | 22,744 | |||||||||
Other non-current liabilities |
2,621 | 2,127 | 1,851 | |||||||||
|
|
|
|
|
|
|||||||
48,090 | 55,095 | 49,907 | ||||||||||
Current liabilities |
||||||||||||
Provisions, current |
5,411 | 3,075 | 3,662 | |||||||||
Borrowings, current |
8,033 | 9,007 | 2,376 | |||||||||
Trade payables |
25,318 | 21,633 | 22,389 | |||||||||
Other current liabilities |
56,003 | 52,896 | 58,663 | |||||||||
|
|
|
|
|
|
|||||||
94,765 | 86,611 | 87,090 | ||||||||||
|
|
|
|
|
|
|||||||
Total equity and liabilities |
283,347 | 275,718 | 284,363 | |||||||||
|
|
|
|
|
|
|||||||
Of which interest-bearing liabilities |
26,686 | 27,290 | 25,120 | |||||||||
Assets pledged as collateral |
2,584 | 2,534 | 2,526 | |||||||||
Contingent liabilities |
1,186 | 1,146 | 922 |
23 Ericsson | Fourth Quarter and Full-Year Report 2016
OF CASH FLOWS
Oct-Dec | Jan-Dec | |||||||||||||||
SEK million |
2016 | 2015 | 2016 | 2015 | ||||||||||||
Operating activities |
||||||||||||||||
Net income |
-1,597 | 6,978 | 1,895 | 13,673 | ||||||||||||
Adjustments to reconcile net income to cash |
||||||||||||||||
Taxes |
-300 | 395 | -6,200 | -2,835 | ||||||||||||
Earnings/dividends in JV and associated companies |
-21 | -33 | 58 | 130 | ||||||||||||
Depreciation, amortization and impairment losses |
2,610 | 2,521 | 9,119 | 10,206 | ||||||||||||
Other |
865 | 1,092 | 3,135 | 3,110 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
1,557 | 10,953 | 8,007 | 24,284 | |||||||||||||
Changes in operating net assets |
||||||||||||||||
Inventories |
4,286 | 3,496 | -613 | -366 | ||||||||||||
Customer finance, current and non-current |
-106 | 302 | -950 | 824 | ||||||||||||
Trade receivables |
3,713 | 2,754 | 5,933 | 7,000 | ||||||||||||
Trade payables |
3,306 | 886 | 2,775 | -2,676 | ||||||||||||
Provisions and post-employment benefits |
2,772 | -673 | 3,106 | 544 | ||||||||||||
Other operating assets and liabilities, net |
3,884 | 4,141 | -4,248 | -9,013 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
17,855 | 10,906 | 6,003 | -3,687 | |||||||||||||
Cash flow from operating activities |
19,412 | 21,859 | 14,010 | 20,597 | ||||||||||||
Investing activities |
||||||||||||||||
Investments in property, plant and equipment |
-1,699 | -1,740 | -6,129 | -8,338 | ||||||||||||
Sales of property, plant and equipment |
277 | 92 | 482 | 1,301 | ||||||||||||
Acquisitions/divestments of subsidiaries and other operations, net |
-50 | -945 | -622 | -2,200 | ||||||||||||
Product development |
-1,291 | -1,183 | -4,483 | -3,302 | ||||||||||||
Other investing activities |
-2,341 | -418 | -3,004 | -543 | ||||||||||||
Interest-bearing securities |
-1,505 | -8,613 | 5,473 | 5,095 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Cash flow from investing activities |
-6,609 | -12,807 | -8,283 | -7,987 | ||||||||||||
Cash flow before financing activities |
12,803 | 9,052 | 5,727 | 12,610 | ||||||||||||
Financing activities |
||||||||||||||||
Dividends paid |
| | -12,263 | -11,337 | ||||||||||||
Other financing activities |
-1,039 | -669 | 521 | 627 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Cash flow from financing activities |
-1,039 | -669 | -11,742 | -10,710 | ||||||||||||
Effect of exchange rate changes on cash |
801 | -2,109 | 2,757 | -2,664 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net change in cash and cash equivalents |
12,565 | 6,274 | -3,258 | -764 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Cash and cash equivalents, beginning of period |
24,401 | 33,950 | 40,224 | 40,988 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Cash and cash equivalents, end of period |
36,966 | 40,224 | 36,966 | 40,224 | ||||||||||||
|
|
|
|
|
|
|
|
24 Ericsson | Fourth Quarter and Full-Year Report 2016
OF CHANGES IN EQUITY
Jan-Dec | ||||||||
SEK million |
2016 | 2015 | ||||||
Opening balance |
147,366 | 145,309 | ||||||
Total comprehensive income |
4,514 | 12,362 | ||||||
Sale/repurchase of own shares |
-216 | 169 | ||||||
Stock issue (net) |
131 | | ||||||
Stock purchase plan |
957 | 865 | ||||||
Dividends paid |
-12,263 | -11,337 | ||||||
Transactions with non-controlling interests |
3 | -2 | ||||||
|
|
|
|
|||||
Closing balance |
140,492 | 147,366 | ||||||
|
|
|
|
- ISOLATED QUARTERS
2016 | 2015 | |||||||||||||||||||||||||||||||
Isolated quarters, SEK million |
Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||||||||
Net sales |
65,215 | 51,076 | 54,108 | 52,209 | 73,568 | 59,161 | 60,671 | 53,520 | ||||||||||||||||||||||||
Cost of sales |
-48,195 | -36,616 | -36,613 | -34,819 | -46,899 | -39,110 | -40,536 | -34,556 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Gross income |
17,020 | 14,460 | 17,495 | 17,390 | 26,669 | 20,051 | 20,135 | 18,964 | ||||||||||||||||||||||||
Gross margin (%) |
26.1 | % | 28.3 | % | 32.3 | % | 33.3 | % | 36.3 | % | 33.9 | % | 33.2 | % | 35.4 | % | ||||||||||||||||
Research and development expenses |
-8,890 | -7,855 | -7,405 | -7,485 | -7,921 | -8,540 | -9,896 | -8,487 | ||||||||||||||||||||||||
Selling and administrative expenses |
-8,799 | -6,238 | -7,109 | -6,720 | -7,996 | -6,393 | -7,765 | -7,131 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Operating expenses |
-17,689 | -14,093 | -14,514 | -14,205 | -15,917 | -14,933 | -17,661 | -15,618 | ||||||||||||||||||||||||
Other operating income and expenses |
364 | -3 | -230 | 273 | 254 | 80 | 1,059 | -1,240 | ||||||||||||||||||||||||
Shares in earnings of JV and associated companies |
25 | -23 | 12 | 17 | 29 | -121 | 27 | 27 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Operating income |
-280 | 341 | 2,763 | 3,475 | 11,035 | 5,077 | 3,560 | 2,133 | ||||||||||||||||||||||||
Financial income |
61 | -226 | 139 | -89 | -109 | 188 | -238 | 684 | ||||||||||||||||||||||||
Financial expenses |
-744 | -371 | -666 | -377 | -619 | -809 | -290 | -740 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Income after financial items |
-963 | -256 | 2,236 | 3,009 | 10,307 | 4,456 | 3,032 | 2,077 | ||||||||||||||||||||||||
Taxes |
-634 | 76 | -670 | -903 | -3,329 | -1,338 | -909 | -623 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net income |
-1,597 | -180 | 1,566 | 2,106 | 6,978 | 3,118 | 2,123 | 1,454 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net income attributable to: |
||||||||||||||||||||||||||||||||
Stockholders of the Parent Company |
-1,604 | -233 | 1,587 | 1,966 | 7,056 | 3,080 | 2,094 | 1,319 | ||||||||||||||||||||||||
Non-controlling interests |
7 | 53 | -21 | 140 | -78 | 38 | 29 | 135 | ||||||||||||||||||||||||
Other information |
||||||||||||||||||||||||||||||||
Average number of shares, basic (million) |
3,268 | 3,264 | 3,261 | 3,258 | 3,254 | 3,251 | 3,247 | 3,244 | ||||||||||||||||||||||||
Earnings per share, basic (SEK) 1) |
-0.49 | -0.07 | 0.49 | 0.60 | 2.17 | 0.95 | 0.64 | 0.41 | ||||||||||||||||||||||||
Earnings per share, diluted (SEK) 1) |
-0.48 | -0.07 | 0.48 | 0.60 | 2.15 | 0.94 | 0.64 | 0.40 |
1) | Based on Net income attributable to stockholders of the Parent Company. |
25 Ericsson | Fourth Quarter and Full-Year Report 2016
OF CASH FLOWS - ISOLATED QUARTERS
2016 | 2015 | |||||||||||||||||||||||||||||||
Isolated quarters, SEK million |
Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||||||||
Operating activities |
||||||||||||||||||||||||||||||||
Net income |
-1,597 | -180 | 1,566 | 2,106 | 6,978 | 3,118 | 2,123 | 1,454 | ||||||||||||||||||||||||
Adjustments to reconcile net income to cash |
||||||||||||||||||||||||||||||||
Taxes |
-300 | -1,282 | -3,410 | -1,208 | 395 | 51 | -1,360 | -1,921 | ||||||||||||||||||||||||
Earnings/dividends in JV and associated companies |
-21 | 22 | 73 | -16 | -33 | 136 | 49 | -22 | ||||||||||||||||||||||||
Depreciation, amortization and impairment losses |
2,610 | 2,308 | 2,104 | 2,097 | 2,521 | 2,425 | 2,579 | 2,681 | ||||||||||||||||||||||||
Other |
865 | 630 | 988 | 652 | 1,092 | 1,052 | 22 | 944 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
1,557 | 1,498 | 1,321 | 3,631 | 10,953 | 6,782 | 3,413 | 3,136 | |||||||||||||||||||||||||
Changes in operating net assets |
||||||||||||||||||||||||||||||||
Inventories |
4,286 | 980 | -1,667 | -4,212 | 3,496 | -226 | 383 | -4,019 | ||||||||||||||||||||||||
Customer finance, current and non-current |
-106 | 223 | -816 | -251 | 302 | 375 | 405 | -258 | ||||||||||||||||||||||||
Trade receivables |
3,713 | -624 | -564 | 3,408 | 2,754 | -1,421 | 3,630 | 2,037 | ||||||||||||||||||||||||
Trade payables |
3,306 | -2,371 | 2,457 | -617 | 886 | -494 | -1,400 | -1,668 | ||||||||||||||||||||||||
Provisions and post-employment benefits |
2,772 | 130 | 218 | -14 | -673 | -302 | 1,685 | -166 | ||||||||||||||||||||||||
Other operating assets and liabilities, net |
3,884 | -2,153 | -1,662 | -4,317 | 4,141 | -3,154 | -5,038 | -4,962 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
17,855 | -3,815 | -2,034 | -6,003 | 10,906 | -5,222 | -335 | -9,036 | |||||||||||||||||||||||||
Cash flow from operating activities |
19,412 | -2,317 | -713 | -2,372 | 21,859 | 1,560 | 3,078 | -5,900 | ||||||||||||||||||||||||
Investing activities |
||||||||||||||||||||||||||||||||
Investments in property, plant and equipment |
-1,699 | -1,384 | -1,572 | -1,474 | -1,740 | -1,807 | -2,424 | -2,367 | ||||||||||||||||||||||||
Sales of property, plant and equipment |
277 | 111 | 50 | 44 | 92 | 59 | 1,075 | 75 | ||||||||||||||||||||||||
Acquisitions/divestments of subsidiaries and other operations, net |
-50 | 16 | -480 | -108 | -945 | -1,028 | -169 | -58 | ||||||||||||||||||||||||
Product development |
-1,291 | -885 | -1,099 | -1,208 | -1,183 | -982 | -843 | -294 | ||||||||||||||||||||||||
Other investing activities |
-2,341 | -508 | -890 | 735 | -418 | 37 | -280 | 118 | ||||||||||||||||||||||||
Interest-bearing securities |
-1,505 | 610 | 5,355 | 1,013 | -8,613 | 3,631 | 9,678 | 399 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Cash flow from investing activities |
-6,609 | -2,040 | 1,364 | -998 | -12,807 | -90 | 7,037 | -2,127 | ||||||||||||||||||||||||
Cash flow before financing activities |
12,803 | -4,357 | 651 | -3,370 | 9,052 | 1,470 | 10,115 | -8,027 | ||||||||||||||||||||||||
Financing activities |
||||||||||||||||||||||||||||||||
Dividends paid |
| -163 | -12,067 | -33 | | -277 | -11,035 | -25 | ||||||||||||||||||||||||
Other financing activities |
-1,039 | -1,295 | 2,761 | 94 | -669 | -34 | 431 | 899 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Cash flow from financing activities |
-1,039 | -1,458 | -9,306 | 61 | -669 | -311 | -10,604 | 874 | ||||||||||||||||||||||||
Effect of exchange rate changes on cash |
801 | 1,285 | 1,652 | -981 | -2,109 | -171 | -1,860 | 1,476 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net change in cash and cash equivalents |
12,565 | -4,530 | -7,003 | -4,290 | 6,274 | 988 | -2,349 | -5,677 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Cash and cash equivalents, beginning of period |
24,401 | 28,931 | 35,934 | 40,224 | 33,950 | 32,962 | 35,311 | 40,988 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Cash and cash equivalents, end of period |
36,966 | 24,401 | 28,931 | 35,934 | 40,224 | 33,950 | 32,962 | 35,311 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
26 Ericsson | Fourth Quarter and Full-Year Report 2016
THE GROUP
27 Ericsson | Fourth Quarter and Full-Year Report 2016
NET SALES BY SEGMENT BY QUARTER
2016 | 2015 | |||||||||||||||||||||||||||||||
Isolated quarters, SEK million |
Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||||||||
Networks |
32,410 | 23,343 | 26,765 | 25,820 | 37,304 | 28,817 | 31,163 | 26,436 | ||||||||||||||||||||||||
Global Services |
29,419 | 24,804 | 24,481 | 23,018 | 30,670 | 27,055 | 26,392 | 23,901 | ||||||||||||||||||||||||
Of which Professional Services |
21,467 | 18,747 | 18,670 | 17,932 | 23,072 | 20,545 | 20,001 | 18,131 | ||||||||||||||||||||||||
Of which Managed Services |
6,853 | 7,153 | 7,330 | 7,352 | 8,214 | 7,976 | 8,150 | 7,501 | ||||||||||||||||||||||||
Of which Network Rollout |
7,952 | 6,057 | 5,811 | 5,086 | 7,598 | 6,510 | 6,391 | 5,770 | ||||||||||||||||||||||||
Support Solutions |
3,386 | 2,929 | 2,862 | 3,371 | 5,594 | 3,289 | 3,092 | 3,074 | ||||||||||||||||||||||||
Modems |
| | | | | | 24 | 109 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
65,215 | 51,076 | 54,108 | 52,209 | 73,568 | 59,161 | 60,671 | 53,520 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
2016 | 2015 | |||||||||||||||||||||||||||||||
Sequential change, percent |
Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||||||||
Networks |
39 | % | -13 | % | 4 | % | -31 | % | 29 | % | -8 | % | 18 | % | -22 | % | ||||||||||||||||
Global Services |
19 | % | 1 | % | 6 | % | -25 | % | 13 | % | 3 | % | 10 | % | -20 | % | ||||||||||||||||
Of which Professional Services |
15 | % | 0 | % | 4 | % | -22 | % | 12 | % | 3 | % | 10 | % | -15 | % | ||||||||||||||||
Of which Managed Services |
-4 | % | -2 | % | 0 | % | -10 | % | 3 | % | -2 | % | 9 | % | -3 | % | ||||||||||||||||
Of which Network Rollout |
31 | % | 4 | % | 14 | % | -33 | % | 17 | % | 2 | % | 11 | % | -31 | % | ||||||||||||||||
Support Solutions |
16 | % | 2 | % | -15 | % | -40 | % | 70 | % | 6 | % | 1 | % | -23 | % | ||||||||||||||||
Modems |
| | | | | | | | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
28 | % | -6 | % | 4 | % | -29 | % | 24 | % | -2 | % | 13 | % | -21 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
2016 | 2015 | |||||||||||||||||||||||||||||||
Year over year change, percent |
Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||||||||
Networks |
-13 | % | -19 | % | -14 | % | -2 | % | 9 | % | -4 | % | 8 | % | 8 | % | ||||||||||||||||
Global Services |
-4 | % | -8 | % | -7 | % | -4 | % | 3 | % | 11 | % | 14 | % | 17 | % | ||||||||||||||||
Of which Professional Services |
-7 | % | -9 | % | -7 | % | -1 | % | 8 | % | 15 | % | 21 | % | 20 | % | ||||||||||||||||
Of which Managed Services |
-17 | % | -10 | % | -10 | % | -2 | % | 6 | % | 11 | % | 26 | % | 30 | % | ||||||||||||||||
Of which Network Rollout |
5 | % | -7 | % | -9 | % | -12 | % | -9 | % | -2 | % | -2 | % | 9 | % | ||||||||||||||||
Support Solutions |
-39 | % | -11 | % | -7 | % | 10 | % | 40 | % | 8 | % | 9 | % | 11 | % | ||||||||||||||||
Modems |
| | | | | | | | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
-11 | % | -14 | % | -11 | % | -2 | % | 8 | % | 3 | % | 11 | % | 13 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
2016 | 2015 | |||||||||||||||||||||||||||||||
Year to date, SEK million |
Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | ||||||||||||||||||||||||
Networks |
108,338 | 75,928 | 52,585 | 25,820 | 123,720 | 86,416 | 57,599 | 26,436 | ||||||||||||||||||||||||
Global Services |
101,722 | 72,303 | 47,499 | 23,018 | 108,018 | 77,348 | 50,293 | 23,901 | ||||||||||||||||||||||||
Of which Professional Services |
76,816 | 55,349 | 36,602 | 17,932 | 81,749 | 58,677 | 38,132 | 18,131 | ||||||||||||||||||||||||
Of which Managed Services |
28,688 | 21,835 | 14,682 | 7,352 | 31,841 | 23,627 | 15,651 | 7,501 | ||||||||||||||||||||||||
Of which Network Rollout |
24,906 | 16,954 | 10,897 | 5,086 | 26,269 | 18,671 | 12,161 | 5,770 | ||||||||||||||||||||||||
Support Solutions |
12,548 | 9,162 | 6,233 | 3,371 | 15,049 | 9,455 | 6,166 | 3,074 | ||||||||||||||||||||||||
Modems |
| | | | 133 | 133 | 133 | 109 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
222,608 | 157,393 | 106,317 | 52,209 | 246,920 | 173,352 | 114,191 | 53,520 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
2016 | 2015 | |||||||||||||||||||||||||||||||
Year to date, year over year change, percent |
Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | ||||||||||||||||||||||||
Networks |
-12 | % | -12 | % | -9 | % | -2 | % | 5 | % | 4 | % | 8 | % | 8 | % | ||||||||||||||||
Global Services |
-6 | % | -7 | % | -6 | % | -4 | % | 11 | % | 14 | % | 16 | % | 17 | % | ||||||||||||||||
Of which Professional Services |
-6 | % | -6 | % | -4 | % | -1 | % | 15 | % | 19 | % | 21 | % | 20 | % | ||||||||||||||||
Of which Managed Services |
-10 | % | -8 | % | -6 | % | -2 | % | 17 | % | 22 | % | 28 | % | 30 | % | ||||||||||||||||
Of which Network Rollout |
-5 | % | -9 | % | -10 | % | -12 | % | -2 | % | 1 | % | 3 | % | 9 | % | ||||||||||||||||
Support Solutions |
-17 | % | -3 | % | 1 | % | 10 | % | 19 | % | 9 | % | 10 | % | 11 | % | ||||||||||||||||
Modems |
| | | | | | | | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
-10 | % | -9 | % | -7 | % | -2 | % | 8 | % | 8 | % | 12 | % | 13 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
28 Ericsson | Fourth Quarter and Full-Year Report 2016
BY SEGMENT BY QUARTER
2016 | 2015 | |||||||||||||||||||||||||||||||
Isolated quarters, SEK million |
Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||||||||
Networks |
661 | -251 | 1,593 | 2,724 | 7,154 | 2,764 | 2,435 | 590 | ||||||||||||||||||||||||
Global Services |
187 | 993 | 1,484 | 644 | 2,530 | 2,364 | 1,640 | 1,681 | ||||||||||||||||||||||||
Of which Professional Services |
844 | 1,401 | 1,676 | 1,293 | 2,712 | 2,386 | 2,403 | 2,109 | ||||||||||||||||||||||||
Of which Network Rollout |
-657 | -408 | -192 | -649 | -182 | -22 | -763 | -428 | ||||||||||||||||||||||||
Support Solutions |
-417 | -351 | -421 | 238 | 1,668 | -6 | -240 | 82 | ||||||||||||||||||||||||
Modems |
| | | | 1 | -1 | 7 | 0 | ||||||||||||||||||||||||
Unallocated 1) |
-711 | -50 | 107 | -131 | -318 | -44 | -282 | -220 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
-280 | 341 | 2,763 | 3,475 | 11,035 | 5,077 | 3,560 | 2,133 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
2016 | 2015 | |||||||||||||||||||||||||||||||
Year to date, SEK million |
Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | ||||||||||||||||||||||||
Networks |
4,727 | 4,066 | 4,317 | 2,724 | 12,943 | 5,789 | 3,025 | 590 | ||||||||||||||||||||||||
Global Services |
3,308 | 3,121 | 2,128 | 644 | 8,215 | 5,685 | 3,321 | 1,681 | ||||||||||||||||||||||||
Of which Professional Services |
5,214 | 4,370 | 2,969 | 1,293 | 9,610 | 6,898 | 4,512 | 2,109 | ||||||||||||||||||||||||
Of which Network Rollout |
-1,906 | -1,249 | -841 | -649 | -1,395 | -1,213 | -1,191 | -428 | ||||||||||||||||||||||||
Support Solutions |
-951 | -534 | -183 | 238 | 1,504 | -164 | -158 | 82 | ||||||||||||||||||||||||
Modems |
| | | | 7 | 6 | 7 | 0 | ||||||||||||||||||||||||
Unallocated 1) |
-785 | -74 | -24 | -131 | -864 | -546 | -502 | -220 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
6,299 | 6,579 | 6,238 | 3,475 | 21,805 | 10,770 | 5,693 | 2,133 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1) | Unallocated consists mainly of costs for corporate staff, non-operational capital gains and losses. |
BY SEGMENT BY QUARTER
As percentage of net sales, isolated quarters |
2016 | 2015 | ||||||||||||||||||||||||||||||
Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||||||
Networks |
2 | % | -1 | % | 6 | % | 11 | % | 19 | % | 10 | % | 8 | % | 2 | % | ||||||||||||||||
Global Services |
1 | % | 4 | % | 6 | % | 3 | % | 8 | % | 9 | % | 6 | % | 7 | % | ||||||||||||||||
Of which Professional Services |
4 | % | 7 | % | 9 | % | 7 | % | 12 | % | 12 | % | 12 | % | 12 | % | ||||||||||||||||
Of which Network Rollout |
-8 | % | -7 | % | -3 | % | -13 | % | -2 | % | 0 | % | -12 | % | -7 | % | ||||||||||||||||
Support Solutions |
-12 | % | -12 | % | -15 | % | 7 | % | 30 | % | 0 | % | -8 | % | 3 | % | ||||||||||||||||
Modems |
| | | | | | | | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
0 | % | 1 | % | 5 | % | 7 | % | 15 | % | 9 | % | 6 | % | 4 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
2016 | 2015 | |||||||||||||||||||||||||||||||
As percentage of net sales, year to date |
Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | ||||||||||||||||||||||||
Networks |
4 | % | 5 | % | 8 | % | 11 | % | 10 | % | 7 | % | 5 | % | 2 | % | ||||||||||||||||
Global Services |
3 | % | 4 | % | 4 | % | 3 | % | 8 | % | 7 | % | 7 | % | 7 | % | ||||||||||||||||
Of which Professional Services |
7 | % | 8 | % | 8 | % | 7 | % | 12 | % | 12 | % | 12 | % | 12 | % | ||||||||||||||||
Of which Network Rollout |
-8 | % | -7 | % | -8 | % | -13 | % | -5 | % | -6 | % | -10 | % | -7 | % | ||||||||||||||||
Support Solutions |
-8 | % | -6 | % | -3 | % | 7 | % | 10 | % | -2 | % | -3 | % | 3 | % | ||||||||||||||||
Modems |
| | | | | | | | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
3 | % | 4 | % | 6 | % | 7 | % | 9 | % | 6 | % | 5 | % | 4 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
29 Ericsson | Fourth Quarter and Full-Year Report 2016
BY REGION BY QUARTER
2016 | 2015 | |||||||||||||||||||||||||||||||
Isolated quarters, SEK million |
Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||||||||
North America |
14,915 | 13,224 | 13,426 | 13,182 | 17,082 | 14,355 | 14,578 | 12,246 | ||||||||||||||||||||||||
Latin America |
4,970 | 4,381 | 4,542 | 4,040 | 6,106 | 5,610 | 5,067 | 4,574 | ||||||||||||||||||||||||
Northern Europe & Central Asia 1) 2) |
2,711 | 2,043 | 2,093 | 2,222 | 2,847 | 2,520 | 2,556 | 2,726 | ||||||||||||||||||||||||
Western & Central Europe 2) |
4,226 | 3,565 | 4,466 | 3,953 | 5,320 | 4,540 | 5,131 | 4,741 | ||||||||||||||||||||||||
Mediterranean 2) |
6,639 | 4,543 | 5,427 | 4,296 | 6,971 | 5,470 | 5,887 | 4,982 | ||||||||||||||||||||||||
Middle East |
6,388 | 4,280 | 4,921 | 3,567 | 6,089 | 5,728 | 6,515 | 4,517 | ||||||||||||||||||||||||
Sub Saharan Africa |
2,732 | 2,012 | 2,313 | 2,120 | 2,847 | 2,691 | 2,653 | 2,158 | ||||||||||||||||||||||||
India |
3,042 | 2,597 | 2,426 | 2,683 | 3,172 | 3,629 | 3,049 | 3,531 | ||||||||||||||||||||||||
North East Asia |
9,623 | 6,122 | 6,041 | 5,579 | 8,916 | 6,348 | 6,943 | 6,030 | ||||||||||||||||||||||||
South East Asia & Oceania |
6,655 | 5,054 | 5,272 | 5,199 | 5,329 | 4,750 | 4,897 | 4,259 | ||||||||||||||||||||||||
Other 1) 2) |
3,314 | 3,255 | 3,181 | 5,368 | 8,889 | 3,520 | 3,395 | 3,756 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
65,215 | 51,076 | 54,108 | 52,209 | 73,568 | 59,161 | 60,671 | 53,520 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
1) Of which in Sweden |
843 | 690 | 477 | 1,113 | 972 | 1,135 | 598 | 1,091 | ||||||||||||||||||||||||
2) Of which in EU |
11,154 | 8,507 | 9,635 | 9,229 | 12,644 | 10,584 | 11,453 | 10,904 | ||||||||||||||||||||||||
2016 | 2015 | |||||||||||||||||||||||||||||||
Sequential change, percent |
Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||||||||
North America |
13 | % | -2 | % | 2 | % | -23 | % | 19 | % | -2 | % | 19 | % | -6 | % | ||||||||||||||||
Latin America |
13 | % | -4 | % | 12 | % | -34 | % | 9 | % | 11 | % | 11 | % | -30 | % | ||||||||||||||||
Northern Europe & Central Asia 1) 2) |
33 | % | -2 | % | -6 | % | -22 | % | 13 | % | -1 | % | -6 | % | -33 | % | ||||||||||||||||
Western & Central Europe 2) |
19 | % | -20 | % | 13 | % | -26 | % | 17 | % | -12 | % | 8 | % | -22 | % | ||||||||||||||||
Mediterranean 2) |
46 | % | -16 | % | 26 | % | -38 | % | 27 | % | -7 | % | 18 | % | -34 | % | ||||||||||||||||
Middle East |
49 | % | -13 | % | 38 | % | -41 | % | 6 | % | -12 | % | 44 | % | -34 | % | ||||||||||||||||
Sub Saharan Africa |
36 | % | -13 | % | 9 | % | -26 | % | 6 | % | 1 | % | 23 | % | -17 | % | ||||||||||||||||
India |
17 | % | 7 | % | -10 | % | -15 | % | -13 | % | 19 | % | -14 | % | 49 | % | ||||||||||||||||
North East Asia |
57 | % | 1 | % | 8 | % | -37 | % | 40 | % | -9 | % | 15 | % | -35 | % | ||||||||||||||||
South East Asia & Oceania |
32 | % | -4 | % | 1 | % | -2 | % | 12 | % | -3 | % | 15 | % | -14 | % | ||||||||||||||||
Other 1) 2) |
2 | % | 2 | % | -41 | % | -40 | % | 153 | % | 4 | % | -10 | % | -19 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
28 | % | -6 | % | 4 | % | -29 | % | 24 | % | -2 | % | 13 | % | -21 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
1) Of which in Sweden |
22 | % | 45 | % | -57 | % | 15 | % | -14 | % | 90 | % | -45 | % | 4 | % | ||||||||||||||||
2) Of which in EU |
31 | % | -12 | % | 4 | % | -27 | % | 19 | % | -8 | % | 5 | % | -24 | % | ||||||||||||||||
2016 | 2015 | |||||||||||||||||||||||||||||||
Year-over-year change, percent |
Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||||||||
North America |
-13 | % | -8 | % | -8 | % | 8 | % | 31 | % | 2 | % | -4 | % | 0 | % | ||||||||||||||||
Latin America |
-19 | % | -22 | % | -10 | % | -12 | % | -7 | % | -5 | % | -6 | % | -3 | % | ||||||||||||||||
Northern Europe & Central Asia 1) 2) |
-5 | % | -19 | % | -18 | % | -18 | % | -30 | % | -20 | % | -6 | % | 12 | % | ||||||||||||||||
Western & Central Europe 2) |
-21 | % | -21 | % | -13 | % | -17 | % | -13 | % | -2 | % | 12 | % | 8 | % | ||||||||||||||||
Mediterranean 2) |
-5 | % | -17 | % | -8 | % | -14 | % | -7 | % | 5 | % | 7 | % | 4 | % | ||||||||||||||||
Middle East |
5 | % | -25 | % | -24 | % | -21 | % | -11 | % | -5 | % | 44 | % | 17 | % | ||||||||||||||||
Sub Saharan Africa |
-4 | % | -25 | % | -13 | % | -2 | % | 9 | % | 10 | % | 41 | % | 19 | % | ||||||||||||||||
India |
-4 | % | -28 | % | -20 | % | -24 | % | 34 | % | 81 | % | 85 | % | 108 | % | ||||||||||||||||
North East Asia |
8 | % | -4 | % | -13 | % | -7 | % | -3 | % | -10 | % | 8 | % | 23 | % | ||||||||||||||||
South East Asia & Oceania |
25 | % | 6 | % | 8 | % | 22 | % | 8 | % | 25 | % | 34 | % | 24 | % | ||||||||||||||||
Other 1) 2) |
-63 | % | -8 | % | -6 | % | 43 | % | 91 | % | 4 | % | 1 | % | 15 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
-11 | % | -14 | % | -11 | % | -2 | % | 8 | % | 3 | % | 11 | % | 13 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
1) Of which in Sweden |
-13 | % | -39 | % | -20 | % | 2 | % | -7 | % | 4 | % | -41 | % | 9 | % | ||||||||||||||||
2) Of which in EU |
-12 | % | -20 | % | -16 | % | -15 | % | -12 | % | -1 | % | 11 | % | 12 | % |
30 Ericsson | Fourth Quarter and Full-Year Report 2016
BY REGION BY QUARTER, CONT.
2016 | 2015 | |||||||||||||||||||||||||||||||
Year to date, SEK million |
Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | ||||||||||||||||||||||||
North America |
54,747 | 39,832 | 26,608 | 13,182 | 58,261 | 41,179 | 26,824 | 12,246 | ||||||||||||||||||||||||
Latin America |
17,933 | 12,963 | 8,582 | 4,040 | 21,357 | 15,251 | 9,641 | 4,574 | ||||||||||||||||||||||||
Northern Europe & Central Asia 1) 2) |
9,069 | 6,358 | 4,315 | 2,222 | 10,649 | 7,802 | 5,282 | 2,726 | ||||||||||||||||||||||||
Western & Central Europe 2) |
16,210 | 11,984 | 8,419 | 3,953 | 19,732 | 14,412 | 9,872 | 4,741 | ||||||||||||||||||||||||
Mediterranean 2) |
20,905 | 14,266 | 9,723 | 4,296 | 23,310 | 16,339 | 10,869 | 4,982 | ||||||||||||||||||||||||
Middle East |
19,156 | 12,768 | 8,488 | 3,567 | 22,849 | 16,760 | 11,032 | 4,517 | ||||||||||||||||||||||||
Sub Saharan Africa |
9,177 | 6,445 | 4,433 | 2,120 | 10,349 | 7,502 | 4,811 | 2,158 | ||||||||||||||||||||||||
India |
10,748 | 7,706 | 5,109 | 2,683 | 13,381 | 10,209 | 6,580 | 3,531 | ||||||||||||||||||||||||
North East Asia |
27,365 | 17,742 | 11,620 | 5,579 | 28,237 | 19,321 | 12,973 | 6,030 | ||||||||||||||||||||||||
South East Asia & Oceania |
22,180 | 15,525 | 10,471 | 5,199 | 19,235 | 13,906 | 9,156 | 4,259 | ||||||||||||||||||||||||
Other 1) 2) |
15,118 | 11,804 | 8,549 | 5,368 | 19,560 | 10,671 | 7,151 | 3,756 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
222,608 | 157,393 | 106,317 | 52,209 | 246,920 | 173,352 | 114,191 | 53,520 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
1) Of which in Sweden |
3,123 | 2,280 | 1,590 | 1,113 | 3,796 | 2,824 | 1,689 | 1,091 | ||||||||||||||||||||||||
2) Of which in EU |
38,525 | 27,371 | 18,864 | 9,229 | 45,585 | 32,941 | 22,357 | 10,904 | ||||||||||||||||||||||||
Year to date, year-over-year change, percent |
2016 | 2015 | ||||||||||||||||||||||||||||||
Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||||||||||||
North America |
-6 | % | -3 | % | -1 | % | 8 | % | 7 | % | -1 | % | -2 | % | 0 | % | ||||||||||||||||
Latin America |
-16 | % | -15 | % | -11 | % | -12 | % | -5 | % | -5 | % | -5 | % | -3 | % | ||||||||||||||||
Northern Europe & Central Asia 1) 2) |
-15 | % | -19 | % | -18 | % | -18 | % | -14 | % | -6 | % | 3 | % | 12 | % | ||||||||||||||||
Western & Central Europe 2) |
-18 | % | -17 | % | -15 | % | -17 | % | 0 | % | 6 | % | 10 | % | 8 | % | ||||||||||||||||
Mediterranean 2) |
-10 | % | -13 | % | -11 | % | -14 | % | 1 | % | 5 | % | 6 | % | 4 | % | ||||||||||||||||
Middle East |
-16 | % | -24 | % | -23 | % | -21 | % | 7 | % | 16 | % | 32 | % | 17 | % | ||||||||||||||||
Sub Saharan Africa |
-11 | % | -14 | % | -8 | % | -2 | % | 18 | % | 22 | % | 30 | % | 19 | % | ||||||||||||||||
India |
-20 | % | -25 | % | -22 | % | -24 | % | 74 | % | 91 | % | 97 | % | 108 | % | ||||||||||||||||
North East Asia |
-3 | % | -8 | % | -10 | % | -7 | % | 2 | % | 5 | % | 15 | % | 23 | % | ||||||||||||||||
South East Asia & Oceania |
15 | % | 12 | % | 14 | % | 22 | % | 21 | % | 28 | % | 29 | % | 24 | % | ||||||||||||||||
Other 1) 2) |
-23 | % | 11 | % | 20 | % | 43 | % | 33 | % | 7 | % | 8 | % | 15 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
-10 | % | -9 | % | -7 | % | -2 | % | 8 | % | 8 | % | 12 | % | 13 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
1) Of which in Sweden |
-18 | % | -19 | % | -6 | % | 2 | % | -8 | % | -9 | % | -16 | % | 9 | % | ||||||||||||||||
2) Of which in EU |
-15 | % | -17 | % | -16 | % | -15 | % | 1 | % | 7 | % | 12 | % | 12 | % |
Country | Q4 | Jan-Dec | ||||||||||||||
As percentage of net sales |
2016 | 2015 | 2016 | 2015 | ||||||||||||
United States |
23 | % | 31 | % | 25 | % | 26 | % | ||||||||
China |
9 | % | 8 | % | 9 | % | 8 | % | ||||||||
India |
5 | % | 4 | % | 5 | % | 5 | % | ||||||||
Italy |
4 | % | 3 | % | 3 | % | 3 | % | ||||||||
Japan |
4 | % | 3 | % | 3 | % | 3 | % |
31 Ericsson | Fourth Quarter and Full-Year Report 2016
BY REGION BY SEGMENT
Q4 2016 | Jan-Dec 2016 | |||||||||||||||||||||||||||||||
SEK million |
Networks | Global Services |
Support Solutions |
Total | Networks | Global Services |
Support Solutions |
Total | ||||||||||||||||||||||||
North America |
7,920 | 6,214 | 781 | 14,915 | 26,978 | 24,692 | 3,077 | 54,747 | ||||||||||||||||||||||||
Latin America |
1,890 | 2,780 | 300 | 4,970 | 7,830 | 9,270 | 833 | 17,933 | ||||||||||||||||||||||||
Northern Europe & Central Asia |
1,385 | 1,259 | 67 | 2,711 | 4,767 | 4,059 | 243 | 9,069 | ||||||||||||||||||||||||
Western & Central Europe |
1,312 | 2,682 | 232 | 4,226 | 5,388 | 10,223 | 599 | 16,210 | ||||||||||||||||||||||||
Mediterranean |
2,214 | 4,166 | 259 | 6,639 | 7,324 | 12,823 | 758 | 20,905 | ||||||||||||||||||||||||
Middle East |
2,683 | 3,391 | 314 | 6,388 | 7,553 | 10,473 | 1,130 | 19,156 | ||||||||||||||||||||||||
Sub Saharan Africa |
1,321 | 1,315 | 96 | 2,732 | 4,059 | 4,649 | 469 | 9,177 | ||||||||||||||||||||||||
India |
1,901 | 1,010 | 131 | 3,042 | 5,536 | 4,617 | 595 | 10,748 | ||||||||||||||||||||||||
North East Asia |
6,468 | 2,918 | 237 | 9,623 | 18,077 | 8,564 | 724 | 27,365 | ||||||||||||||||||||||||
South East Asia & Oceania |
3,563 | 2,977 | 115 | 6,655 | 12,249 | 9,571 | 360 | 22,180 | ||||||||||||||||||||||||
Other |
1,753 | 707 | 854 | 3,314 | 8,577 | 2,781 | 3,760 | 15,118 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
32,410 | 29,419 | 3,386 | 65,215 | 108,338 | 101,722 | 12,548 | 222,608 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Share of Total |
50 | % | 45 | % | 5 | % | 100 | % | 49 | % | 46 | % | 5 | % | 100 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 2016 | ||||||||||||||||
Sequential change, percent |
Networks | Global Services |
Support Solutions |
Total | ||||||||||||
North America |
30 | % | -2 | % | -2 | % | 13 | % | ||||||||
Latin America |
4 | % | 15 | % | 111 | % | 13 | % | ||||||||
Northern Europe & Central Asia |
29 | % | 37 | % | 31 | % | 33 | % | ||||||||
Western & Central Europe |
23 | % | 12 | % | 113 | % | 19 | % | ||||||||
Mediterranean |
44 | % | 46 | % | 69 | % | 46 | % | ||||||||
Middle East |
69 | % | 41 | % | 13 | % | 49 | % | ||||||||
Sub Saharan Africa |
50 | % | 28 | % | -6 | % | 36 | % | ||||||||
India |
39 | % | -10 | % | 17 | % | 17 | % | ||||||||
North East Asia |
67 | % | 48 | % | -17 | % | 57 | % | ||||||||
South East Asia & Oceania |
54 | % | 12 | % | 34 | % | 32 | % | ||||||||
Other |
2 | % | -1 | % | 5 | % | 2 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
39 | % | 19 | % | 16 | % | 28 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Q4 2016 | ||||||||||||||||
Year over year change, percent |
Networks | Global Services |
Support Solutions |
Total | ||||||||||||
North America |
0 | % | -18 | % | -49 | % | -13 | % | ||||||||
Latin America |
-34 | % | -7 | % | 14 | % | -19 | % | ||||||||
Northern Europe & Central Asia |
-3 | % | -5 | % | -31 | % | -5 | % | ||||||||
Western & Central Europe |
-29 | % | -17 | % | -6 | % | -21 | % | ||||||||
Mediterranean |
-17 | % | 3 | % | 2 | % | -5 | % | ||||||||
Middle East |
-2 | % | 13 | % | -6 | % | 5 | % | ||||||||
Sub Saharan Africa |
-16 | % | 16 | % | -28 | % | -4 | % | ||||||||
India |
11 | % | -23 | % | -2 | % | -4 | % | ||||||||
North East Asia |
11 | % | 2 | % | 0 | % | 8 | % | ||||||||
South East Asia & Oceania |
35 | % | 23 | % | -56 | % | 25 | % | ||||||||
Other |
-71 | % | -3 | % | -59 | % | -63 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
-13 | % | -4 | % | -39 | % | -11 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Jan-Dec 2016 | ||||||||||||||||
Year over year change, percent |
Networks | Global Services |
Support Solutions |
Total | ||||||||||||
North America |
3 | % | -11 | % | -26 | % | -6 | % | ||||||||
Latin America |
-20 | % | -14 | % | -2 | % | -16 | % | ||||||||
Northern Europe & Central Asia |
-23 | % | -1 | % | -26 | % | -15 | % | ||||||||
Western & Central Europe |
-20 | % | -16 | % | -20 | % | -18 | % | ||||||||
Mediterranean |
-20 | % | -4 | % | 1 | % | -10 | % | ||||||||
Middle East |
-36 | % | 8 | % | -9 | % | -16 | % | ||||||||
Sub Saharan Africa |
-15 | % | -5 | % | -28 | % | -11 | % | ||||||||
India |
-32 | % | 1 | % | -18 | % | -20 | % | ||||||||
North East Asia |
-3 | % | -3 | % | 6 | % | -3 | % | ||||||||
South East Asia & Oceania |
22 | % | 10 | % | -33 | % | 15 | % | ||||||||
Other |
-30 | % | -3 | % | -14 | % | -23 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
-12 | % | -6 | % | -17 | % | -10 | % | ||||||||
|
|
|
|
|
|
|
|
32 Ericsson | Fourth Quarter and Full-Year Report 2016
2016 | 2015 | |||||||||||||||||||||||||||||||
Isolated quarters, SEK million |
Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||||||||
Opening balance |
3,245 | 3,387 | 3,532 | 3,838 | 4,331 | 5,354 | 4,056 | 4,427 | ||||||||||||||||||||||||
Additions |
4,349 | 666 | 839 | 492 | 589 | 695 | 2,777 | 915 | ||||||||||||||||||||||||
Utilization/Cash out |
-976 | -716 | -794 | -667 | -1,096 | -1,545 | -1,217 | -1,204 | ||||||||||||||||||||||||
Of which restructuring |
-785 | -529 | -639 | -487 | -754 | -1,103 | -472 | -437 | ||||||||||||||||||||||||
Reversal of excess amounts |
-253 | -129 | -240 | -67 | 87 | -168 | -161 | -236 | ||||||||||||||||||||||||
Reclassification, translation difference and other |
-8 | 37 | 50 | -64 | -73 | -5 | -101 | 154 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Closing balance |
6,357 | 3,245 | 3,387 | 3,532 | 3,838 | 4,331 | 5,354 | 4,056 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
2016 | 2015 | |||||||||||||||||||||||||||||||
Year to date, SEK million |
Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | ||||||||||||||||||||||||
Opening balance |
3,838 | 3,838 | 3,838 | 3,838 | 4,427 | 4,427 | 4,427 | 4,427 | ||||||||||||||||||||||||
Additions |
6,346 | 1,997 | 1,331 | 492 | 4,976 | 4,387 | 3,692 | 915 | ||||||||||||||||||||||||
Utilization/Cash out |
-3,153 | -2,177 | -1,461 | -667 | -5,062 | -3,966 | -2,421 | -1,204 | ||||||||||||||||||||||||
Of which restructuring |
-2,440 | -1,655 | -1,126 | -487 | -2,766 | -2,012 | -909 | -437 | ||||||||||||||||||||||||
Reversal of excess amounts |
-689 | -436 | -307 | -67 | -478 | -565 | -397 | -236 | ||||||||||||||||||||||||
Reclassification, translation difference and other |
15 | 23 | -14 | -64 | -25 | 48 | 53 | 154 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Closing balance |
6,357 | 3,245 | 3,387 | 3,532 | 3,838 | 4,331 | 5,354 | 4,056 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments in assets subject to depreciation, amortization, impairment and write-downs
2016 | 2015 | |||||||||||||||||||||||||||||||
Isolated quarters, SEK million |
Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||||||||
Additions |
||||||||||||||||||||||||||||||||
Property, plant and equipment |
1,699 | 1,384 | 1,572 | 1,474 | 1,739 | 1,807 | 2,424 | 2,367 | ||||||||||||||||||||||||
Capitalized development expenses 1) |
1,291 | 885 | 1,099 | 1,208 | 1,183 | 982 | 843 | 294 | ||||||||||||||||||||||||
IPR, brands and other intangible assets |
0 | -4 | 13 | 5 | 23 | 10 | 26 | 11 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
2,990 | 2,265 | 2,684 | 2,687 | 2,945 | 2,799 | 3,293 | 2,672 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Depreciation, amortization and impairment losses |
||||||||||||||||||||||||||||||||
Property, plant and equipment |
1,318 | 1,106 | 1,083 | 1,062 | 1,194 | 1,129 | 1,152 | 1,214 | ||||||||||||||||||||||||
Capitalized development expenses |
652 | 511 | 386 | 351 | 349 | 354 | 333 | 342 | ||||||||||||||||||||||||
IPR, brands and other intangible assets |
640 | 691 | 635 | 684 | 978 | 942 | 1,094 | 1,125 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
2,610 | 2,308 | 2,104 | 2,097 | 2,521 | 2,425 | 2,579 | 2,681 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1) | Including reclassification |
33 Ericsson | Fourth Quarter and Full-Year Report 2016
Oct-Dec | Jan-Dec | |||||||||||||||
SEK million |
2016 | 2015 | 2016 | 2015 | ||||||||||||
Number of shares and earnings per share |
||||||||||||||||
Number of shares, end of period (million) |
3,331 | 3,305 | 3,331 | 3,305 | ||||||||||||
Of which class A-shares (million) |
262 | 262 | 262 | 262 | ||||||||||||
Of which class B-shares (million) |
3,069 | 3,043 | 3,069 | 3,043 | ||||||||||||
Number of treasury shares, end of period (million) |
62 | 49 | 62 | 49 | ||||||||||||
Number of shares outstanding, basic, end of period (million) |
3,269 | 3,256 | 3,269 | 3,256 | ||||||||||||
Numbers of shares outstanding, diluted, end of period (million) |
3,309 | 3,289 | 3,309 | 3,289 | ||||||||||||
Average number of treasury shares (million) |
63 | 51 | 60 | 56 | ||||||||||||
Average number of shares outstanding, basic (million) |
3,268 | 3,254 | 3,263 | 3,249 | ||||||||||||
Average number of shares outstanding, diluted (million) 1) |
3,308 | 3,288 | 3,303 | 3,282 | ||||||||||||
Earnings per share, basic (SEK) |
-0.49 | 2.17 | 0.53 | 4.17 | ||||||||||||
Earnings per share, diluted (SEK) 1) |
-0.48 | 2.15 | 0.52 | 4.13 | ||||||||||||
Ratios |
||||||||||||||||
Days sales outstanding |
| | 95 | 87 | ||||||||||||
Inventory turnover days |
61 | 59 | 69 | 64 | ||||||||||||
Payable days |
44 | 43 | 56 | 53 | ||||||||||||
Exchange rates used in the consolidation 2) |
||||||||||||||||
SEK/EUR- closing rate |
| | 9.56 | 9.17 | ||||||||||||
SEK/USD- closing rate |
| | 9.06 | 8.40 | ||||||||||||
Other |
||||||||||||||||
Regional inventory, end of period |
16,231 | 15,453 | 16,231 | 15,453 | ||||||||||||
Export sales from Sweden |
33,396 | 34,601 | 107,036 | 117,486 |
1) | Potential ordinary shares are not considered when their conversion to ordinary shares would increase earnings per share. |
2) | Translation method changed from 2015. Monthly rates used to translate transactions are available on www.ericsson.com/thecompany/investors |
2016 | 2015 | |||||||||||||||||||||||||||||||
End of period |
Dec 31 | Sep 30 | Jun 30 | Mar 31 | Dec 31 | Sep 30 | Jun 30 | Mar 31 | ||||||||||||||||||||||||
North America |
11,547 | 12,229 | 13,838 | 14,081 | 14,548 | 14,669 | 14,975 | 15,156 | ||||||||||||||||||||||||
Latin America |
9,513 | 9,592 | 9,616 | 9,836 | 10,412 | 10,754 | 10,823 | 10,970 | ||||||||||||||||||||||||
Northern Europe & Central Asia 1) |
19,136 | 19,759 | 20,177 | 20,167 | 20,700 | 20,953 | 21,441 | 21,556 | ||||||||||||||||||||||||
Western & Central Europe |
13,646 | 13,574 | 13,727 | 12,100 | 12,220 | 12,042 | 12,400 | 12,575 | ||||||||||||||||||||||||
Mediterranean |
12,578 | 13,110 | 12,957 | 12,906 | 12,702 | 12,748 | 12,925 | 13,363 | ||||||||||||||||||||||||
Middle East |
3,346 | 3,479 | 3,573 | 3,608 | 3,639 | 3,634 | 3,717 | 3,813 | ||||||||||||||||||||||||
Sub Saharan Africa |
2,086 | 2,167 | 2,347 | 2,377 | 2,301 | 2,306 | 2,389 | 2,442 | ||||||||||||||||||||||||
India |
22,552 | 22,340 | 22,541 | 22,424 | 21,999 | 21,343 | 21,353 | 21,215 | ||||||||||||||||||||||||
North East Asia |
13,042 | 13,434 | 13,547 | 13,623 | 13,706 | 13,782 | 13,104 | 13,488 | ||||||||||||||||||||||||
South East Asia & Oceania |
4,018 | 4,113 | 4,184 | 4,178 | 4,054 | 4,009 | 4,056 | 4,128 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
111,464 | 113,797 | 116,507 | 115,300 | 116,281 | 116,240 | 117,183 | 118,706 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
1) Of which in Sweden |
15,303 | 15,872 | 16,190 | 16,290 | 17,041 | 17,242 | 17,560 | 17,569 |
34 Ericsson | Fourth Quarter and Full-Year Report 2016
RESTRUCTURING CHARGES BY FUNCTION
2016 | 2015 | |||||||||||||||||||||||||||||||
Isolated quarters, SEK million |
Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||||||||
Cost of sales |
-2,140 | -546 | -461 | -328 | -282 | -351 | -1,157 | -484 | ||||||||||||||||||||||||
Research and development expenses |
-1,531 | -529 | -422 | -257 | -305 | -547 | -1,118 | -51 | ||||||||||||||||||||||||
Selling and administrative expenses |
-978 | -190 | -138 | -47 | -117 | -80 | -469 | -79 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
-4,649 | -1,265 | -1,021 | -632 | -704 | -978 | -2,744 | -614 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
2016 | 2015 | |||||||||||||||||||||||||||||||
Year to date, SEK million |
Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | ||||||||||||||||||||||||
Cost of sales |
-3,475 | -1,335 | -789 | -328 | -2,274 | -1,992 | -1,641 | -484 | ||||||||||||||||||||||||
Research and development expenses |
-2,739 | -1,208 | -679 | -257 | -2,021 | -1,716 | -1,169 | -51 | ||||||||||||||||||||||||
Selling and administrative expenses |
-1,353 | -375 | -185 | -47 | -745 | -628 | -548 | -79 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
-7,567 | -2,918 | -1,653 | -632 | -5,040 | -4,336 | -3,358 | -614 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RESTRUCTURING CHARGES BY SEGMENT
2016 | 2015 | |||||||||||||||||||||||||||||||
Isolated quarters, SEK million |
Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||||||||
Networks |
-2,529 | -609 | -607 | -295 | -259 | -565 | -1,842 | -173 | ||||||||||||||||||||||||
Global Services |
-1,725 | -598 | -346 | -315 | -213 | -358 | -691 | -419 | ||||||||||||||||||||||||
Of which Professional Services |
-1,351 | -475 | -273 | -237 | -60 | -316 | -175 | -140 | ||||||||||||||||||||||||
Of which Network Rollout |
-374 | -123 | -73 | -78 | -153 | -42 | -516 | -279 | ||||||||||||||||||||||||
Support Solutions |
-324 | -35 | -68 | -22 | -230 | -37 | -194 | -19 | ||||||||||||||||||||||||
Modems |
| | | | 1 | -1 | -12 | -3 | ||||||||||||||||||||||||
Unallocated |
-71 | -23 | | | -3 | -17 | -5 | | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
-4,649 | -1,265 | -1,021 | -632 | -704 | -978 | -2,744 | -614 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
2016 | 2015 | |||||||||||||||||||||||||||||||
Year to date, SEK million |
Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | ||||||||||||||||||||||||
Networks |
-4,040 | -1,511 | -902 | -295 | -2,839 | -2,580 | -2,015 | -173 | ||||||||||||||||||||||||
Global Services |
-2,984 | -1,259 | -661 | -315 | -1,681 | -1,468 | -1,110 | -419 | ||||||||||||||||||||||||
Of which Professional Services |
-2,336 | -985 | -510 | -237 | -691 | -631 | -315 | -140 | ||||||||||||||||||||||||
Of which Network Rollout |
-648 | -274 | -151 | -78 | -990 | -837 | -795 | -279 | ||||||||||||||||||||||||
Support Solutions |
-449 | -125 | -90 | -22 | -480 | -250 | -213 | -19 | ||||||||||||||||||||||||
Modems |
| | | | -15 | -16 | -15 | -3 | ||||||||||||||||||||||||
Unallocated |
-94 | -23 | | | -25 | -22 | -5 | | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
-7,567 | -2,918 | -1,653 | -632 | -5,040 | -4,336 | -3,358 | -614 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
35 Ericsson | Fourth Quarter and Full-Year Report 2016