* Sales SEK 67.0 (54.5) b., up 23%, full year SEK 208.9 (187.8) b.,
up 11%
* Operating income 1) 2) SEK 9.2 (7.6) b., full year SEK 23.9 (30.6)
b.
* Operating margin 1) 2) 13.7% (14.0%), full year 11.4% (16.3%)
* Cash flow SEK 7.0 (12.0) b., full year SEK 24.0 (19.2) b.
* Net income 2) 3) SEK 4.1 (5.8) b., full year SEK 11.7 (22.1) b.
* Earnings per share 2) 3) 4) SEK 1.21 (1.77), full year SEK 3.52
(6.84)
* Board of Directors proposes dividend of SEK 1,85 per share
1) Excluding restructuring charges of SEK 3.0 b. in the quarter and
SEK 7.6 b. for the full year
2) Including capital gains of SEK 0.2 b. in first quarter and SEK 0.8
b. in fourth quarter 2008
3) Attributable to stockholders of the Parent Company, excluding
minority interests
4) A reverse split 1:5 was made in June 2008, comparable figures
restated accordingly
CEO COMMENTS"We have had a solid performance in 2008," said Carl-Henric Svanberg,
President and CEO of Ericsson (NASDAQ:ERIC). "Sales grew by 11% with
good demand for our entire portfolio and across the world. Changes in
currency rates had very small effect on full year growth.
Professional services have continued to show strong growth. Operating
margins, excluding Sony Ericsson, have steadily improved, and our
financial position is strong with net cash of SEK 35 b. Sony Ericsson
is affected by the economic downturn and the declining demand in the
consumer market and has taken necessary actions.
During the year, we saw some 650 million new mobile subscriptions and
the 4 billion milestone is now reached. 2008 was also a breakthrough
year for mobile broadband. Communication is a basic human need. It
plays a critical role in the development of a sustainable and
prosperous society, and the positive long-term prospects for the
industry remain.
The economic recession is spreading across the world. The effects on
the global mobile network market should not be that significant as
most operators have healthy financial positions, there is a strong
traffic growth and the networks are fairly loaded. It remains,
however, difficult to more precisely predict to what extent consumer
telecom spending will be affected and how operators will act. To
date, our infrastructure business is hardly impacted at all, but it
would be unreasonable to think that this would be the case also
throughout 2009.
We have exceeded our cost reduction targets launched in 2008. In the
present environment, we will continue to reduce costs, across all
parts of the company at the same pace as in 2008 with restructuring
charges of SEK 6-7 b., targeting annual savings of SEK 10 b. from the
second half of 2010. We are leveraging synergies between our
different technologies and taking advantage of opportunities in the
transformation to all-IP networks. As the savings largely are the
result of more efficient ways of working, our strategy will remain
intact and our unique capabilities should not be affected," concluded
Carl-Henric Svanberg.
FINANCIAL HIGHLIGHTS
Income statement and cash flow
Third
Fourth quarter quarter Full year
2008 1) 2008 2008
SEK b. 5) 2007 Change 1) Change 1) 5) 2007 Change
Net sales 67.0 54.5 23% 49.2 36% 208.9 187.8 11%
Gross margin 35.2% 36.1% - 37.0% - 36.8% 39.3% -
EBITDA margin 16.8% 18.4% - 15.3% - 15.6% 20.8% -
Operating
income 9.2 7.6 21% 5.7 62% 23.9 30.6 -22%
Operating
margin 13.7% 14.0% - 11.5% - 11.4% 16.3% -
Operating
margin
excl Sony
Ericsson 14.6% 9.8% - 11.5% - 11.3% 12.5% -
Income after
financial
items 9.5 7.6 25% 6.2 54% 24.8 30.7 -19%
Net income 2)
3) 3.9 5.6 -31% 2.8 37% 11.3 21.8 -48%
EPS diluted,
SEK 2) 3) 4) 1.21 1.77 -32% 0.89 36% 3.52 6.84 -49%
Cash flow from
operating
activities 7.0 12.0 - 3.8 - 24.0 19.2 -
Cash flow
excl.
Sony Ericsson 7.0 12.0 - 2.4 - 20.4 15.3 -
1) Excluding restructuring charges of SEK 3.0 b.in the fourth quarter
2008, SEK 2.0 b.in the third quarter 2008, SEK 1.8 b. in the second
quarter and SEK 0.8 b. in the first quarter
2) Including restructuring charges in 2008
3) Attributable to stockholders of the Parent Company, excluding
minority interests
4) A reverse split 1:5 was made in June 2008. Comparable figures are
restated accordingly
5) Fourth quarter 2008 includes a capital gain of SEK 0.8 b. from
divestment of shares in Symbian
Sales in the quarter increased by 23% year-over-year and by 11% for
the full year. Currency exchange rates have had limited effects on
full year sales. The currency exchange rate swings, especially
towards the end of the year, have positively impacted sales growth in
the fourth quarter significantly. Excluding currency exchange rate
effects, the fourth quarter still showed the strongest growth in the
year.
In the quarter, gross margin was 35.2% (36.1%), excluding
restructuring charges. Full year gross margin amounted to 36.8%
(39.3%). The sequential decline was mainly due to a high proportion
of network rollout services. The network rollout sales increased
sequentially by 61%.
Operating expenses amounted to SEK 15.3 (15.2) b. in the quarter,
excluding restructuring charges. Expense run-rate is decreasing as a
result of cost savings activities but this was partly offset by
currency exchange rate effects. Operating expenses as a percentage of
sales decreased from 28% to 27% for the full year.
In the quarter, Sony Ericsson contributed a result of EUR -67 (251)
million, excluding restructuring charges of EUR 65 million. For the
full year, Sony Ericsson showed a break-even result, excluding
restructuring charges.
Operating income before restructuring charges amounted to SEK 9.2
(7.6) b. in the quarter and SEK 23.9 (30.6) b. for the full year. The
operating income for the quarter includes a capital gain of SEK 0.8
b. from the divestment of shares in Symbian and a loss of SEK 0.7 b.
from Sony Ericsson.
In the quarter, weaker SEK exchange rates affected income positively,
but to a much lesser extent than sales. The currency translation
effects during the quarter were offset by the negative effects of
transaction hedges.
Restructuring charges in Ericsson amounted to SEK 2.3 (-) b. in the
quarter and to SEK 6.7 (-) b. for the full year. Ericsson's share of
the restructuring charges in Sony Ericsson amounted to SEK 0.7 (-) b.
for the quarter and SEK 0.9 (-) b. for the full year.
Financial net was SEK 0.3 (0.0) b. in the quarter and SEK 1.0 (0.1)
b. for the full year. Positive effects from improved interest rates
were to some extent offset by negative effects from changing currency
exchange rates.
Net income amounted to SEK 4.1 (5.8) b. in the quarter and SEK 11.7
(22.1) b. for the full year, impacted by restructuring charges and a
dramatic drop in the contribution from Sony Ericsson.
Cash flow from operating activities reached SEK 7.0 (12.0) b. in the
quarter and SEK 24.0 (19.2) b. for the full year. Changes in net
operating assets were negative at SEK 2.3 b. in the quarter. Despite
good collections, trade receivables increased due to high year-end
sales. This was partly offset by reduced inventories and increased
current liabilities. Cash conversion for the full year increased to
92% (66%).
For the year, the tax rate has increased to 32.3% (28.0%) due to
changed mix of high and low tax countries. The deferred tax assets
have also been revalued due to change in the statutory tax rate in
Sweden from 2009 that has increased the tax cost for 2008.
Balance sheet and other performance indicators
Full Nine Six Three Full
year months months months year
SEK b. 2008 2008 2008 2008 2007
Net cash 34.7 30.2 27.9 28.3 24.3
Interest-bearing
provisions
and post-employment
benefits 40.4 35.4 29.2 32.0 33.4
Trade receivables 75.9 62.6 56.7 56.4 60.5
Days sales
outstanding 106 115 107 110 102
Inventory 27.8 29.7 26.6 24.5 22.5
Of which work in
progress 16.5 18.4 16.3 13.8 12.5
Inventory turnover 5.3 1) 4.5 1) 4.7 1) 4.6 1) 5.2
Payable days 55 57 56 57 57
Customer financing,
net 2.8 2.2 2.4 2.7 3.4
Return on capital
employed 16% 1) 13% 1) 12% 1) 12% 1) 21%
Equity ratio 50% 52% 55% 56% 55%
1) Excluding effects from restructuring
The net cash position increased sequentially to SEK 34.7 (30.2) b.
Cash, cash equivalents and short-term investments amounted to SEK
75.0 (57.7) b. Of a total debt position of SEK 30.5 b., SEK 5.5 b.
matures in the next twelve months.
Customer financing remain at a low level and amounted to SEK 2.8
(2.2) b.
During the quarter, approximately SEK 2.3 b. of provisions related to
warranty and project commitments and other items were utilized, of
which SEK 1.0 b. were related to restructuring. Additions of SEK 3.8
b. were made, of which SEK 1.2 b. related to restructuring. Reversals
of SEK 0.8 b. were made. The net impact on operating income,
excluding restructuring charges, was negative by SEK 1.8 b.
Days sales outstanding decreased in the quarter to 106 days but are
up year-over-year from 102. Currency exchange rates have had a
negative effect.
Cost reductions
In February 2008, a cost reduction plan of SEK 4 b. in annual savings
was announced, including estimated charges of the same size. All
activities with related charges were launched by the third quarter,
and it was announced that further charges would be made in the fourth
quarter.
Charges in the fourth quarter amount to SEK 2.3 b. and for the full
year 2008 to SEK 6.7 b. In total, this has resulted in annual savings
of approximately SEK 6.5 b. from year-end.
Cost savings will continue also in 2009. Restructuring charges are
estimated to SEK 6-7 b. and annual savings of SEK 10 b. are expected
by the second half of 2010, with an equal split between cost of sales
and operating expenses.
We are leveraging synergies between our different technologies,
in-house and acquired, and taking advantage of opportunities in the
transformation to all-IP. We will reduce the number of software
platforms and increase the re-use of hardware. We will also move
certain activities to low-cost countries.
Cost reductions will be achieved through reduction of the number of
consultants and other temporary staff, consolidation of R&D sites and
layoffs. These activities will result in a reduction of the number of
employees by some 5,000, of which about 1,000 in Sweden, primarily in
Stockholm.
Restructuring charges 2008
Isolated quarters, SEK b. Accumulated Q4 Q3 Q2 Q1
Cost of sales -2.5 -1.1 -0.6 -0.6 -0.2
Research and development expenses -2.7 -0.7 -0.3 -1.1 -0.6
Selling and administrative expenses -1.5 -0.5 -0.9 -0.1 -0.0
Share in Sony Ericsson charges -0.9 -0.7 -0.2 - -
Total -7.6 -3.0 -2.0 -1.8 -0.8
SEGMENT RESULTS
Third
Fourth quarter quarter Full year
2008 2008 2008
SEK b. 1) 2007 Change 1) Change 1) 2) 2007 Change
Networks sales 45.8 37.5 22% 33.0 39% 142.0 129.0 10%
Of which 18.5
network rollout 7.6 6.4 17% 4.7 61% 21.5 16%
Operating margin 14% 10% - 11% - 11% 13% -
EBITDA margin 17% 15% - 15% - 16% 19% -
Professional
Services 42.9
sales 16.2 12.1 34% 11.8 38% 49.0 14%
Of which 12.2
managed services 4.3 3.3 29% 3.5 23% 14.3 17%
Operating margin 18% 15% - 16% - 16% 15% -
EBITDA margin 19% 16% - 19% - 17% 16% -
Multimedia sales 5.0 4.9 4% 4.4 14% 17.9 15.9 13%
Operating margin 12% 4) -9% - 3% - 1% 4) -1% -
11% 3) 4%
EBITDA margin 21% 4) -3% - 12% - 4) -
Total sales 67.0 54.5 23% 49.2 36% 208.9 187.8 11%
1) Excluding restructuring costs in 2008
2) First quarter 2008 is restated for the transfer of the IPX
operations from Professional Services to Multimedia
3) Affected by SEK 0.2 b. due to changed allocation of capitalized
development expenses during second quarter 2008
4) Fourth quarter 2008 includes a capital gain of SEK 0.8 b. from
divestment of shares in Symbian
Networks
Sales in Networks increased by 22% in the quarter, year-over-year,
positively impacted by a weaker SEK. For the full year sales grew by
10%. 2008 was another record year for rollout of GSM. In addition,
major 3G rollouts are ongoing in many markets while key markets, such
as China and India, will soon start their 3G buildouts.
Mobile broadband is now firmly established and networks with speeds
of 21 Mbps have been launched in several countries. LTE is
established as a true global world standard for mobile broadband. In
January, 2009, Ericsson announced its first contract for a commercial
LTE network.
The transition from traditional circuit switching to softswitching
has come far and Ericsson has established a clear leadership
position. Sales of Redback's SmartEdge products noted very strong
growth for the second consecutive quarter.
Sales of network rollout services increased 61% sequentially,
reflecting a high proportion of completions of large new network
buildouts.
Professional Services
Sales of Professional Services increased by 34% in the quarter,
year-over-year, and by 14% for the full year. Growth in constant
currencies amounted to 26% and 13% respectively. Managed services
continued to grow substantially, and consulting and systems
integration showed strong growth due to a high amount of customer
projects finalized during the quarter. Operating margins in the
quarter reached18% (15%) due to favorable mix, continued efficiency
gains and high volumes.
During the quarter, 11 new managed services contracts were signed.
The total number of subscribers in managed operations now amounts to
250 million, of which 60% are in high-growth markets. The growth in
managed services is fueled by operators' desire to reduce operating
expenses and improve efficiency in network operation and maintenance.
Multimedia
Sales in Multimedia increased by 4% in the quarter, year-over-year,
and by 13% for the full year. For comparable units, i.e. excluding
divestment of the enterprise PBX operations and adjusted for the
transfer of the IPX operations, sales grew by 21% in the quarter,
year-over-year and by 16% for the full year. Tandberg Television and
revenue management continued to show good growth while the mobile
platform business is starting to experience effects of the weakening
handset market. Operating income in the quarter, excluding effects
from the divestment of shares in Symbian, was SEK -0.2 (-0.4) b.
Sony Ericsson Mobile Communications
For information on transactions with Sony Ericsson Mobile
Communications, please see Financial statements and Additional
information.
Third
Fourth quarter quarter Full year
EUR m. 2008 2007 Change 2008 Change 2008 2007 Change
Number of units
shipped (m.) 24.2 30.8 -21% 25.7 -6% 96.6 103.4 -7%
Average selling
price (EUR) 121 123 -2% 109 11% 116 125 -7%
Net sales 2,914 3,771 -23% 2,808 4% 11,244 12,916 -13%
Gross margin 15% 32% - 22% - 22% 31% -
Operating 12%
margin -9% 13% - -1% - -1% -
Income before 1,574
taxes -263 501 - -23 - -83 -
Income before 1,574
taxes,
excl
restructuring
charges -133 501 - 12 - 92 -
Net income -187 373 - -25 - -73 1,114 -
Units shipped in the quarter were 24.2 million, a sequential decrease
of 6% and a year-on-year decrease of 21%. Sales in the quarter were
EUR 2,914 million, an increase of 4% sequentially but a decrease of
23% compared to fourth quarter 2007. The global economic slowdown is
resulting in a contracting consumer demand.
Income before taxes for the quarter was EUR -133 million, excluding
restructuring charges of EUR 129 million, compared to the profit of
EUR 501 million in fourth quarter 2007. Despite a negative result in
the quarter, Sony Ericsson maintained a healthy balance sheet with a
strong net cash position of EUR 1,072 million.
Ericsson's share in Sony Ericsson's income before tax was SEK -1.3
(2.3) b. in the quarter and SEK -0.5 (7.1) b. for the full year.
The EUR 300 million operating expenses savings measures earlier
announced have been increased to EUR 480 million, with the full
effect expected at the end of 2009. The cost for the total program
will be covered by the previously announced EUR 300 million in
restructuring charges.
REGIONAL OVERVIEW
Fourth quarter Third quarter Full year
Sales, SEK b. 2008 2007 Change 2008 Change 2008 2007 Change
Western Europe 16.1 15.4 5% 11.6 39% 51.6 52.7 -2%
Central and 14.3
Eastern
Europe,
Middle East
and Africa 17.6 24% 13.1 35% 53.1 48.7 9%
Asia Pacific 20.5 13.7 49% 14.1 45% 63.3 54.6 16%
Latin America 7.9 6.8 16% 6.1 29% 23.0 18.4 25%
North America 4.9 4.3 13% 4.3 14% 17.9 13.4 34%
Western Europe sales increased by 5% in the quarter, year-over-year,
and decreased by 2% for the full year. The year-over-year increase in
the quarter was driven by strong performance mainly in Germany,
Denmark and Italy. The strong sequential increase of 39% is above
normal seasonality and driven by good demand for mobile broadband and
professional services.
In Central and Eastern Europe, Middle East and Africa, sales
increased by 24% in the quarter, year-over-year, and by 9% for the
full year. A strong year-over-year quarterly performance in Nigeria,
Saudi Arabia and South Africa is driven by continued 2G buildout,
while a strong growth in Russia is driven by ongoing 3G rollouts.
Asia Pacific sales increased by 49% in the quarter, year-over-year,
and by 16% for the full year. The Chinese market rebounded after the
Olympic Games. 3G licenses were awarded in the beginning of January
2009 and rollouts will start soon. India, with large network
rollouts, remains Ericsson's largest and fastest growing market.
Japan and Indonesia showed strong development in the quarter and are
now Ericsson's fifth and sixth largest markets. The market in
Pakistan is still weak due to political uncertainties.
Latin American sales increased by 16% in the quarter, year-over-year,
and by 25% for the full year. The year has been impacted by a
combination of 2G enhancements and 3G buildouts, and 3G is now an
established technology across the region. Mexico and Brazil showed
strong development, both in the quarter and for the full year, and
show no signs of slow-down despite the economic downturn.
North American sales increased by 13% in the quarter, year-over-year,
and full year sales increased by 34%. The recorded slower growth in
the fourth quarter is mainly an effect of a tough year-over-year
comparison despite positive effects of the increasing USD in the
fourth quarter. For the full year, the effects from changes in
currency exchange rates were limited. Mobile broadband is now well
established with good consumer take-up, which is driving continued
rollouts as well as capacity enhancements.
MARKET DEVELOPMENT
Growth rates are based on Ericsson and market estimates.
We believe that the fundamentals for longer-term positive development
for our industry are solid. The need for telecommunication continues
to grow and plays a vital role for the development of a sustainable
and prosperous society. Ericsson is well positioned to lead this
development.
The world is being affected by an economic recession. It is however
difficult to predict to what extent consumer telecom spending will be
affected and how operators will act. Operators are generally
financially strong, the networks are fairly loaded and traffic
continues to increase. However, large currency movements and
uncertainties in the credit markets could affect operators'
investment capacity.
Mobile subscriptions grew by some 176 million in the quarter to a
total of 3.98 billion. The number of WCDMA subscriptions grew by 24
million to a total of 290 million. In the twelve-month period ending
September 30, 2008, fixed broadband connections grew by 20%
year-over-year to more than 385 million.
The continued subscription growth creates need for new and expanded
mobile networks and corresponding professional services. Although GSM
continues to represent the majority of the mobile systems market, its
growth is slowing as 3G/WCDMA is accelerating. The strong development
in emerging markets continues, and although they represent less than
one third of global GDP they represent significantly more of the
market for mobile network equipment.
Broadband Internet revenues for fixed operators are expected to grow
from 20% to more than 30% of total revenues in the next five years.
Mobile operators' data revenues, currently at some 20% of total
revenues, are expected to grow even faster.
Currently, 20 million households are served by IPTV. This is expected
to grow to approximately 100 million households within the same
timeframe.
All this is driving an increased focus on smarter networks and
bundled service offerings. Operators have accelerated the conversion
to all-IP broadband networks with increased deployments of broadband
access, routing and transmission along with next-generation service
delivery and revenue management systems.
PARENT COMPANY INFORMATION
Net sales for the year amounted to SEK 5.1 (3.2) b. and income after
financial items was SEK 19.4 (14.7) b. During the fourth quarter,
shares in Symbian Ltd has been sold by the Parent Company.
Major changes in the Parent Company's financial position for the year
include; decreased investments in subsidiaries of SEK 6.8 b., mostly
attributable to write-down of investments caused by payments of
dividends of approximately the same amount; decreased current and
non-current receivables from subsidiaries of SEK 6.4 b; increased
other current receivables of SEK 4.8 b.; increased cash and bank and
short-term investments of SEK 13.6 b.; decreased current and
non-current liabilities to subsidiaries by SEK 9.2 b. and increased
other current liabilities by SEK 5.6 b.
As per December 31, 2008, cash, bank and short-term investments
amounted to SEK 59.2 (45.6) b.
Major transactions with related parties include the following
transactions and balances with Sony Ericsson Mobile Communications:
revenues of SEK 2.0 (3.0) b.; receivables of SEK 0.6 (0.9) b.;
dividend of SEK 3.6 (3.9) b.
In accordance with the conditions of the Stock Purchase Plans and
Option Plans for Ericsson employees, 1,171,119 shares from treasury
stock were sold or distributed to employees during the fourth quarter
and 5,232,211 shares during the year. In the third quarter 19,900,000
treasury shares were repurchased. The holding of treasury stock at
December 31, 2008 was 61,066,097 Class B shares.
DIVIDEND PROPOSAL
The Board of Directors will propose to the Annual General Meeting a
dividend of SEK 1.85 (2.50) per share, representing some SEK 6.0
(8.0) b., and April 27, 2009, as record day for payment of dividend.
ANNUAL REPORT
The annual report will be made available to shareholders on our
website www.ericsson.com and at the Ericsson headquarters,
Torshamnsgatan 23, Stockholm, in the week of March 9-13, 2009.
ANNUAL GENERAL MEETING OF SHAREHOLDERS
The Annual General Meeting of shareholders will be held on Wednesday
April 22, 2009, 15.00 (CET) in the Stockholm Globe Arena.
OTHER INFORMATION
Joint venture between Ericsson Mobile Platforms and ST-NXP Wireless
The joint venture between Ericsson Mobile Platforms and ST-NXP
Wireless has received all necessary regulatory approvals and closing
will take place during the first quarter 2009.
Assessment of risk environment
Ericsson's operational and financial risk factors and exposures are
described under "Risk factors" in our Annual Report 2007.
Risk factors and exposures in focus for the Parent Company and the
Ericsson Group for the forthcoming six-month period include:
* potential negative effects due to the present serious turmoil in
the financial markets and the beginning economic slow-down on
operators' willingness to invest in network development as well as
the financial liabilities of sub suppliers, for example due to lack
of borrowing facilities or reduced consumer telecom spending, or
increased pressure on us to provide financing;
* unfavorable product mix in the Networks segment, with reduced
sales of software, upgrades and extensions and an increased
proportion of new network build-outs and break-in contracts, which
may result in lower gross margins and/or working capital build-up,
which in turn puts pressure on our cash conversion rate;
* a volatile sales pattern in the Multimedia segment or variability
in our overall sales seasonality could make it more difficult to
forecast future sales;
* effects of the ongoing industry consolidation among the company's
customers as well as between our largest competitors, e.g.
intensified price competition;
* changes in foreign exchange rates, in particular USD and EUR;
* continued political unrest or instability in certain markets.
Ericsson conducts business in certain countries which are subject to
trade restrictions or which are focused on by certain investors. We
stringently follow all relevant regulations and trade embargos
applicable to us in our dealings with customers operating in such
countries. Moreover, Ericsson operates globally in accordance with
Group level policies and directives for business ethics and conduct.
In no way should our business activities in these countries be
construed as supporting a particular political agenda or regime. We
have activities in such countries mainly due to that certain
customers with multi-country operations put demands on us to support
them in all of their markets.
Please refer further to Ericsson's Annual Report 2007, where we
describe our risks and uncertainties along with our strategies and
tactics to mitigate the risk exposures or limit unfavorable outcomes.
Stockholm, January 21, 2009
Carl-Henric Svanberg
President and CEO
Telefonaktiebolaget LM Ericsson (publ)
Date for next report: April 30, 2009
AUDITORS' REVIEW REPORT
We have reviewed this report for the period January 1 to December 31,
2008, for Telefonaktiebolaget LM Ericsson (publ). The board of
directors and the CEO are responsible for the preparation and
presentation of this financial information in accordance with IAS 34
and the Annual Accounts Act. Our responsibility is to express a
conclusion on this financial information based on our review.
We conducted our review in accordance with the Standard on Review
Engagements SÖG 2410, Review of Financial Information Performed by
the Independent Auditor of the Entity, issued by FAR SRS. A review
consists of making inquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other
review procedures. A review is substantially less in scope than an
audit conducted in accordance with Standards on Auditing in Sweden,
RS, and other generally accepted auditing practices. The procedures
performed in a review do not enable us to obtain a level of assurance
that would make us aware of all significant matters that might be
identified in an audit. Therefore, the conclusion expressed based on
a review does not give the same level of assurance as a conclusion
expressed based on an audit.
Based on our review, nothing has come to our attention that causes us
to believe that the accompanying financial information is not, in all
material respects, in accordance with IAS 34 and the Annual Accounts
Act.
Stockholm, January 21, 2009
PricewaterhouseCoopers AB
Bo Hjalmarsson
Peter Clemedtson
Authorized Public
Accountant
Authorized Public Accountant
Lead
partner
EDITOR'S NOTE
To read the complete report with tables, please go to:
www.ericsson.com/investors/financial_reports/2008/12month08-en.pdf
Ericsson invites media, investors and analysts to a press conference
at the Ericsson headquarters, Torshamnsgatan 23, Stockholm, at 09.00
(CET), January 21.
An analysts, investors and media conference call will begin at 14.00
(CET).
Live webcasts of the press conference and conference call as well as
supporting slides will be available at www.ericsson.com/press and
www.ericsson.com/investors.
Video material will be made available during the day on
www.ericsson.com/broadcast_room
FOR FURTHER INFORMATION, PLEASE CONTACT
Henry Sténson, Senior Vice President, Communications
Phone: +46 10 719 4044
E-mail: investor.relations@ericsson.com or
press.relations@ericsson.com
Investors
Gary Pinkham, Vice President,
Investor Relations
Phone: +46 10 719 0000
E-mail: investor.relations@ericsson.com
Susanne Andersson,
Investor Relations
Phone: +46 10 719 4631
E-mail: investor.relations@ericsson.com
Andreas Hedemyr,
Investor Relations
Phone: +46 10 714 3748
E-mail: investor.relations@ericsson.com
Media
Åse Lindskog, Vice President,
Head of Media Relations
Phone: +46 10 719 9725, +46 730 244 872
E-mail: press.relations@ericsson.com
Ola Rembe, Vice President,
Phone: +46 10 719 9727, +46 730 244 873
E-mail: press.relations@ericsson.com
Telefonaktiebolaget LM Ericsson (publ)
Org. number: 556016-0680
Torshamnsgatan 23
SE-164 83 Stockholm
Phone: +46 10 719 0000
www.ericsson.com
Disclosure Pursuant to the Swedish Securities Markets Act
Ericsson discloses the information provided herein pursuant to the
Securities Markets Act. The information was submitted for publication
at 07.30 CET, on January 21, 2009.
Safe Harbor Statement of Ericsson under the US Private Securities
Litigation Reform Act of 1995;
All statements made or incorporated by reference in this release,
other than statements or characterizations of historical facts, are
forward-looking statements. These forward-looking statements are
based on our current expectations, estimates and projections about
our industry, management's beliefs and certain assumptions made by
us. Forward-looking statements can often be identified by words such
as "anticipates", "expects", "intends", "plans", "predicts","believes", "seeks", "estimates", "may", "will", "should", "would","potential", "continue", and variations or negatives of these words,
and include, among others, statements regarding: (i) strategies,
outlook and growth prospects; (ii) positioning to deliver future
plans and to realize potential for future growth; (iii) liquidity and
capital resources and expenditure, and our credit ratings; (iv)
growth in demand for our products and services; (v) our joint venture
activities; (vi) economic outlook and industry trends; (vii)
developments of our markets; (viii) the impact of regulatory
initiatives; (ix) research and development expenditures; (x) the
strength of our competitors; (xi) future cost savings; (xii) plans to
launch new products and services; (xiii) assessments of risks; (xiv)
integration of acquired businesses; (xv) compliance with rules and
regulations and (xvi) infringements of intellectual property rights
of others.
In addition, any statements that refer to expectations, projections
or other characterizations of future events or circumstances,
including any underlying assumptions, are forward-looking statements.
These forward-looking statements speak only as of the date hereof and
are based upon the information available to us at this time. Such
information is subject to change, and we will not necessarily inform
you of such changes. These statements are not guarantees of future
performance and are subject to risks, uncertainties and assumptions
that are difficult to predict. Therefore, our actual results could
differ materially and adversely from those expressed in any
forward-looking statements as a result of various factors. Important
factors that may cause such a difference for Ericsson include, but
are not limited to: (i) material adverse changes in the markets in
which we operate or in global economic conditions; (ii) increased
product and price competition; (iii) reductions in capital
expenditure by network operators; (iv) the cost of technological
innovation and increased expenditure to improve quality of service;
(v) significant changes in market share for our principal products
and services; (vi) foreign exchange rate or interest rate
fluctuations; and (vii) the successful implementation of our business
and operational initiatives.
