Exhibit 15.2

Report of Independent Auditors

To the Shareholders of Sony Ericsson Mobile Communications AB

We have audited the accompanying consolidated balance sheets of Sony Ericsson Mobile Communications AB and its subsidiaries as of December 31, 2010 and December 31, 2009 and the related consolidated statements of income and of cash flows for each of the three years in the periods ended December 31, 2010. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Sony Ericsson Mobile Communications AB and its subsidiaries at December 31, 2010 and December 31, 2009, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2010 in conformity with accounting principles generally accepted in Sweden.

Accounting principles generally accepted in Sweden vary in certain significant respects from accounting principles generally accepted in the United States of America. Information relating to the nature and effect of such differences is presented in Note C28 to the consolidated financial statements.

/s/ PricewaterhouseCoopers AB

Malmo, Sweden

March 30, 2011

Sony Ericsson Mobile Communications Group

Table of contents

Consolidated Income Statement	2
Consolidated Balance Sheet	3
Consolidated Cash Flow	4
Notes to the Consolidated Financial Statements	5

20-F 2010            1

Consolidated Income Statements

January 1 - December 31, TEUR	Notes		2010		2009		2008
Net sales		C2		6,293,782		6,788,152		11,243,840
Cost of sales				-4,440,285		-5,781,797		-8,749,816
GROSS PROFIT				1,853,497		1,006,355		2,494,024
Selling expenses				-479,150		-583,412		-868,700
General and Administration expenses		C24		-413,474		-442,543		-439,710
Research and Development expenses				-839,570		-1,045,784		-1,319,567
Other operating revenues		C3		38,181		48,053		44,074
Other operating expenses		C3		—		-523		-548
Share in earnings of joint venture				—		—		-22,649
OPERATING INCOME		C6,C7,C15,C16 C22,C23		159,484		-1,017,854		-113,077
Interest income		C4		17,798		21,324		101,494
Interest expense		C4		-29,981		-46,146		-71,162
NET INCOME BEFORE TAXES				147,301		-1,042,676		-82,745
Income taxes for the year		C5		-48,326		235,569		31,138
Minority interest				-8,508		-28,720		-21,283
NET INCOME				90,468		-835,827		-72,890

20-F 2010            2

Consolidated Balance Sheets

December 31, TEUR	Notes		2010		2009
ASSETS
Fixed assets
Intangible assets		C6		12,211		16,607
Tangible assets		C7		135,334		149,675
Financial assets
Other non-current assets		C8		655,868		610,821
Total fixed and financial assets				803,413		777,103
Current assets
Inventories		C9		460,357		358,141
Accounts receivable		C10		835,949		832,073
Other current assets		C11		295,046		379,676
Other short-term cash investments		C12		276,168		524,235
Cash and bank				328,516		388,884
Total current assets				2,196,036		2,483,009
Total assets				2,999,449		3,260,112
SHAREHOLDERS’ EQUITY AND LIABILITIES
Shareholders’ equity		C13
Restricted equity
Share capital				100,000		100,000
Restricted reserves				467,998		442,576
Total restricted equity				567,998		542,576
Unrestricted equity
Non-restricted reserves				-126,741		674,291
Net income for the year				90,468		-835,827
Total unrestricted equity				-36,273		-161,536
Total equity				531,725		381,040
Minority interest				42,286		47,364
Provisions		C14		391,370		628,113
LIABILITIES
Long-term liabilities
Post-employment benefits		C16		24,466		24,104
Liabilities to financial institutions		C17, C26		100,000		—
Other long-term liabilities		C17		7,838		5,940
Total long-term liabilities				132,304		30,044
Current liabilities
Liabilities to financial institutions		C26		133,081		258,273
Advances from customers				2,668		2,225
Accounts payable				768,747		851,913
Income tax liabilities				51,751		19,103
Other current liabilities		C18		945,517		1,042,037
Total current liabilities				1,901,764		2,173,551
Total shareholders’ equity and liabilities				2,999,449		3,260,112
Assets pledged as collateral		C19		27		35,264
Contingent liabilities		C20		3,603		3,229

20-F 2010            3

Consolidated Cash Flow

January 1 - December 31, TEUR	Notes		2010		2009		2008
OPERATING ACTIVITIES
Net income				90,468		-835,827		-72,890
Depreciation				76,452		105,760		117,687
Adjustment to reconcile net income to cash		C21		-231,527		-217,828		18,928
				-64,607		-947,895		63,725
Change in inventories				-75,724		171,563		-93,186
Change in accounts receivable				56,990		812,827		240,778
Change in other receivables				98,095		226,105		-233,863
Change in accounts payable				-142,732		-133,490		-273,593
Change in other liabilities				-119,227		-456,846		26,721
Cash flow from operating activities				-247,205		-327,736		-269,418
INVESTING ACTIVITIES
Investments in intangible assets				-4,685		-4,247		-9,964
Sales of intangible assets				144		164		2,607
Investments in tangible assets				-57,059		-54,379		-126,583
Sales of tangible assets				22,142		6,975		5,391
Net investments in joint venture				—		—		-9,428
Sales/Amortization of other financial assets				—		—		111,532
Change in temporary investments				35,000		-35,000		—
Cash flow from investing activities				-4,458		-86,487		-26,445
FINANCING ACTIVITIES
Borrowing				560,463		260,428		53,271
Repayment of debt				-597,683		-53,919		—
Dividend to minority				-22,693		-35,603		-37,117
Dividend paid				—		—		-770,000
Cash flow from financing activities				-59,913		170,906		-753,846
Net change in cash				-311,576		-243,317		-1,049,708
Cash, beginning of period				878,119		1,124,877		2,155,236
Translation difference in Cash				38,141		-3,441		19,349
Cash, end of period				604,684		878,119		1,124,877

20-F 2010            4

Notes to the Consolidated Financial Statements

Contents

C1. Accounting Principles	6
C2. Net sales by market area	10
C3. Other operating revenues and other operating expenses	10
C4. Financial income and expenses	10
C5. Taxes	10
C6. Intangible assets	11
C7. Tangible assets	12
C8. Other non-current assets	13
C9. Inventory	13
C10. Accounts receivable	14
C11. Other current assets	14
C12. Short term cash investments	14
C13. Shareholders’ equity	14
C14. Provisions	15
C15. Restructuring costs	15
C16. Post-employment benefits	15
C17. Long-term liabilities	16
C18. Other current liabilities	16
C19. Assets pledged as collateral	17
C20. Contingent liabilities	17
C21. Adjustments to reconcile net income to cash	17
C22. Leasing	17
C23. Wages, salaries and social security expenses	18
C24. Fees to auditors	19
C25. Financial risks	19
C26. Liabilities to financial institutions	20
C27. Group companies	21
C28. Reconciliation to accounting principles generally accepted in the United States	21

20-F 2010            5

C1. Accounting Principles

The consolidated financial statements of Sony Ericsson Mobile Communications AB are prepared in accordance with accounting principles generally accepted in Sweden, applying the Swedish Annual Accounts Act (ÅRL), the Swedish Accounting Standards Board’s recommendations (Bokföringsnämnden, BFN) and the Recommendation of the Swedish Financial Accounting Standards Council, RR 29 Remunerations to employees. The accounting principles are unchanged since last year. Figures in parentheses in the disclosures refer to 2009.

As a result of the restructuring programmes launched in 2008 and 2009, all facilities are now managed by a centralized administrative function, leading to that from 2010 all facility cost has been reported as General and Administration expenses. The comparative figures have been restated to reflect this change, i.e. a move from Selling expenses and Research and Development expenses to General and Administration expenses as shown below.

	2009				2008
	Before		After		Before		After
Selling expenses		-608,447		-583,412		-894,808		-868,700
General and Administration expenses		-355,603		-442,543		-354,139		-439,710
Research and Development expenses		-1,107,689		-1,045,784		-1,379,031		-1,319,567
		-2,071,738		-2,071,738		-2,627,978		-2,627,978

Principle of Consolidation

The consolidated financial statements include the accounts of the Parent Company and all subsidiaries in which the company has a voting majority. The intercompany transactions and internal profit have been eliminated. The consolidated financial statements have been prepared in accordance with the purchase method, whereby consolidated stockholders’ equity includes equity earned only after acquisition. Minority interest in net earnings is reported in the consolidated income statement. Minority interest in the equity of subsidiaries is reported as a separate item in the consolidated balance sheet.

Translation of financial statements in foreign currency

Sony Ericsson’s results are presented in EUR which is the reporting currency and the functional currency of the parent company. The group has sales and cost of sales in a large number of currencies. For all companies, including subsidiary

companies, the functional (business) currency is the currency in which the companies primarily generate and expend cash. Their financial statements plus goodwill related to such companies are translated to EUR by translating assets and liabilities at the closing rate on the balance sheet day and income statement items at average exchange rates, during the year, with translation adjustments reported directly in consolidated equity.

Revenue recognition

Sales revenue is recorded upon the delivery of products according to contractual terms and represents amounts realized, excluding value-added tax, and is net of goods expected to be returned, trade discounts and allowances. Sales revenue is recognized with reference to all significant contractual terms when the product has been delivered, when the revenue amount is fixed or determinable and when collection is reasonably assured.

Accruals for sales bonuses and similar items such as quarterly and yearly bonuses, quality bonus, co-op advertising and stock protection are shown as deductions from gross sales to arrive at net sales.

For product and equipment sales, revenue recognition generally does not occur until the products or equipment have been shipped, risk of loss has transferred to the customer, and objective evidence exists that customer acceptance provisions, if any, have been met. The Company records revenue when allowances for discounts, price protection, returns and customer incentives can be reliably estimated. Recorded revenues are reduced by these allowances. The Company bases its estimates on historical experience taking into consideration the type of products sold, the type of customer, and the type of transaction specific in each arrangement.

Costs related to shipping and handlings are included in cost of sales in the Consolidated Income Statement.

Research and development costs

Research and development costs are charged to expenses as incurred. Expenses related to the third party (including joint venture) development of new platforms for mobile phones are capitalized as other non-current asset and are amortized when the platforms are put into commercial use. Such costs are capitalized as intangible assets when technological feasibility has been

20-F 2010            6

established and when future economic benefits can be demonstrated.

Hedge accounting

The Group applies hedge accounting, by electing the fair value option in accordance with the Swedish Annual Accounts Act 4:14, for financial instruments intended to hedge foreign currency exposures having a future impact on results.

At the point in time at which the contract is established, the relationship between the hedging instrument and the hedged item is documented, as well as the purpose of this risk management and the strategy for taking various hedging measures. The company also documents its assessment, both when the contract is entered into and on an ongoing basis, as to whether the derivative used in the hedging transaction is effective in counteracting changes in fair value or income statement effects, in terms of the hedged items in question.

The hedging is designed in such a manner as to ensure, to the greatest degree possible, its effectiveness. The changes in fair value for those derivative instruments which do not meet the conditions for hedge accounting are reported directly in the income statement.

Future foreign currency exposures are hedged primarily by forward cover agreements but also via currency options. The effective portion of changes in the fair value of hedging instruments is recognized in equity. Any gain or loss relating to the ineffective portion is recognized in the income statement. Amounts accumulated in equity are recycled in the income statement in the periods in which the hedged item affects profit or loss, for example, when the forecasted sale which is hedged takes place.

Intangible and tangible fixed assets

Intangible and tangible fixed assets are stated at cost less accumulated depreciation and impairment losses as well as write-ups. Annual depreciation is reported as plan depreciation, generally using the straight line method with estimated useful lives ranging from 3 years up to 10 years for machineries and equipments. Intangible assets are amortized over a period ranging from 3 years up to 5 years or based on the contract’s economic reality. Land improvements are amortized over 20 years. The costs of computer software developed or obtained for internal use are capitalized as intangible assets when technological feasibility has been

established and when future economic benefits can be demonstrated.

Tooling

Tooling owned by Sony Ericsson but used in its manufacturing partners operations is capitalized and amortized over the useful life of the tools.

Financial assets

Financial assets that are intended for long-term holding are accounted at acquisition value and impairment is made if a permanent decrease in the value can be stated. These assets include strategic long-term investments in private companies over which Sony Ericsson does not have the ability to exercise significant influence.

Joint venture

Investments in joint ventures, where Sony Ericsson has significant influence, are recognized in the consolidated financial statements in accordance with the equity method. Sony Ericsson’s share of income before taxes is reported in item “Share in earnings of joint venture” included in Operating income. Taxes are included in item “Income taxes for the year”.

Impairment test of assets

Impairment tests are performed whenever there is an indication of possible impairment. An impairment loss is determined based on the amount by which the carrying value exceeds the fair value of those assets.

Leases

Leases on terms in which Sony Ericsson assumes substantially all the risks and rewards of ownership are classified as finance leases, i.e. the leased object is recognized as a non-current asset and the future obligations for lease payments are recognized as current and non-current liabilities in the Balance Sheet. Upon initial recognition, the leased asset is measured at an amount equal to the lower of its fair value and the present value of the minimum lease payments. Subsequent to initial recognition, the asset is accounted for in accordance with the accounting policy applicable to that asset, although the depreciation period would not exceed the lease term.

Leasing agreements which are not classified as financial leases are classified as operational leases, and the leased assets under such contracts are not recognized in the balance sheet.

20-F 2010            7

Costs under operating leases are recognized in the Income Statement on a straight-line base over the term of the lease. Lease incentives received are recognized as an integral part of the total lease expense, over the term of the lease. Sony Ericsson has not identified any material financial leases for the reported periods.

Income tax

Reported income tax includes tax, which is to be paid or received, regarding the current year, adjustments concerning the previous years’ current taxes and changes in deferred taxes.

All income tax liabilities and receivables are valued at their nominal amount according to the tax regulations and are measured at the tax rate that is expected to be applied to the temporary differences when they reverse, based on the tax laws that have been enacted or substantively enacted by the reporting date. An adjustment of deferred tax asset/liability balances due to a change in the tax rate is recognized in the income statement unless it relates to a temporary difference earlier recognized directly in equity, in which case the adjustment is also recognized in equity.

In the case of items reported in the income statement, the related tax effects are also reported in the income statement. The tax effects of items that are accounted for directly against equity are also reported directly against equity.

Deferred tax is calculated according to the balance sheet method on all temporary differences arising between the reported value and the tax value of the assets and liabilities.

Receivables

Receivables with maturities greater than 12 months after balance sheet date are reported as fixed assets, and other receivables as current assets. Receivables are reported in the amounts at which they are expected to be received, on the basis of individual assessment.

Accounts Receivable

Accounts receivable are reported as current assets in the amounts at which they are expected to be received net of individual bad debt assessment.

Inventories

Inventories, which include the cost of materials, labor and overhead, are measured at the lower of cost or net realizable value on a first-in, first-out (FIFO) basis. Risk of obsolescence has been measured by estimating market value based on future customer demand and customer acceptance of new products.

Borrowings

Borrowings are reported initially at fair value, net of transaction costs incurred. If the reported amount differs from the amount to be repaid at maturity date, then the difference is allocated as interest expense or interest income over the tenor of the loan. In this manner, the initial amount reported agrees, at maturity date, with the amount to be repaid.

Financial liabilities first cease to be reported when they have been settled on the basis of repayment or when repayment has been waived.

All transactions are reported on settlement date.

Provisions

Provisions are made when there are legal or constructive obligations as a result of past events and when it is probable that an outflow of resources will be required to settle the obligations and the amounts can be reliably estimated. However, the actual outflow as a result of the obligation may differ from such estimate.

Warranty provisions include provisions for faulty products based on estimated return rates and costs. The best estimate is based on sales, contractual warranty periods and historical failure data of products sold.

Post-employment benefits

The Group has both defined benefit and defined contribution plans.

A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. The Group has no legal or constructive obligations to pay further contributions. The contributions are recognized as employee benefit expenses when they are due.

A defined benefit plan is a pension plan that defines an amount of pension benefit that an employee or former employee will receive on

20-F 2010            8

retirement, usually dependent on one or more factors such as age, years of service and compensation. The Group is responsible for the fulfillment of the pension obligation.

The schemes are both funded and unfunded.

The liability or receivable recognized in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets, unrecognized actuarial gains and losses and unrecognized past service cost.

Independent actuaries using the Projected Unit Credit Method calculate the defined benefit obligations and expenses annually. This method indicates that past-service costs are amortized on a straight-line basis over the vesting period. The present value of the defined benefit obligation is determined by discontinuing the estimated future cash outflows using interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension liability.

Actuarial gains and losses, arising from experience adjustments and changes in actuarial assumptions, to the extent theses exceed 10% of the pension obligations’ present value or the fair value of plan assets are charged or credited to income over the employees’ expected average remaining period of service.

The principle described above for defined benefit plans is applied in the consolidated financial statements. The Parent Company has pension commitments in Sweden for white collar workers secured through an insurance solution with the insurance company Alecta. According to a statement issued by the Swedish Financial Reporting Board (UFR 3), this constitutes a multi-employer plan and should be accounted for as a defined benefit plan, as prescribed in RR 29 and UFR 6. Alecta cannot, however, provide the information required for the accounting of a defined benefit plan, as described in UFR 6. The Alecta plan is therefore accounted for as a defined contribution plan as prescribed in UFR6.

Contingent liabilities

The Group records a Contingent liability when there is a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or

more uncertain future events not wholly within the control of the entity. Contingent liabilities are also reported when there is a present obligation that arises from past events but is not recognized, because it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation, or the amount of the obligation cannot be measured with sufficient reliability.

Statement of Cash Flow

Foreign subsidiaries’ transactions are translated at the average exchange rate during the period. Subsidiaries purchased and/or sold, net of cash acquired/sold, are reported as cash flow from investment activities and do not affect reported cash flow from operations. Cash and cash equivalents consist of cash and bank and short term cash investments with a maturity less than three months. Bank deposits with an initial maturity over three months are not included in cash and cash equivalents. The statement of Cash Flow for 2008, 2009 and 2010 complies with International Accounting Standards (IAS) No. 7.

Related party transactions

Transactions and balances related to Sony and Ericsson are classified as external items.

Disposition of earnings

Each year the Board of Directors assesses the parent company and the group’s results and financial position in order to determine the appropriate disposition of earnings. This disposition, including any payment of dividends, is based on a number of factors including: the latest profit and loss account, the parent company’s equity, the parent company’s and the group’s cash flows, the equity ratio and liquidity of the parent company and the group after the proposed dividend in relation to the industry standards in which the parent company and the group conducts its business, and both the parent company’s and the group’s ability to fulfill both their short and long-term obligations. The Board of Directors resolved that the accumulated deficit, EUR -121,810,460, whereof Net income for the year EUR 143,430,034, will be carried forward.

20-F 2010            9

C2. Net sales by market area

	2010		2009		2008
Europe, Middle East & Africa		3,218,638		3,744,278		5,965,838
Americas		851,203		849,577		2,565,969
Asia Pacific		2,223,941		2,194,297		2,712,033
Total		6,293,782		6,788,152		11,243,840

C3. Other operating revenues and other operating expenses

	2010		2009		2008
Other operating revenues
Gains on sales of intangible and tangible assets		4,731		146		548
Gains on sales of financial assets		—		—		19,621
Commissions, license fees and other operating revenues		33,450		47,907		23,905
Total other operating revenues		38,181		48,053		44,074
Other operating expenses
Losses on sales of intangible and tangible assets		—		-523		-548
Total other operating expenses		—		-523		-548

Gains on sales of financial assets refer to sale of shares in Symbian Software Ltd during 2008.

C4. Financial income and expenses

	2010		2009		2008
Interest income and similar profit items
Interest income external		13,498		16,909		80,962
Foreign exchange gains		1,824		2,363		18,055
Other financial income		2,477		2,052		2,476
Total		17,798		21,324		101,494
Interest expense and similar loss items
Interest expenses external		-25,820		-36,264		-46,287
Foreign exchange losses		-1,935		-2,954		-17,474
Other financial expenses		-2,226		-6,929		-7,402
Total		-29,981		-46,146		-71,162
Financial Net		-12,183		-24,822		30,332

C5. Taxes

Income statement

The following items are included in income taxes for the year:

Income tax for the year	2010		2009		2008
Current income taxes for the period		-79,657		-32,075		-82,275
Deferred tax income/ (-expense) related to temporary differences and tax loss carry forwards		31,331		267,645		113,413
Income taxes for the period		-48,326		235,569		31,138

20-F 2010            10

A reconciliation between actual tax income (-expense) for the year and the theoretical tax income (-expense) that would arise when applying statutory tax rate in Sweden, 26.3 % (2008: 28 %) on income before taxes is shown in the table:

	2010		2009		2008
Income before taxes		147,301		-1,042,676		-82,745
Tax rate in Sweden, 26,3 % (2008: 28 %)		-38,740		273,653		23,169
Effect of foreign tax rates		-10,974		-8,938		1,993
Current income taxes related to prior years		-79		-7,640		9,321
Tax effect of expenses that are non deductible for tax purpose		-12,336		-16,942		-21,684
Tax effect of income that are non-taxable for tax purpose		13,024		3,619		12,319
Tax effect of changes in tax rates		779		-7,923		162
Change in valuation allowance		—		-260		5,858
Income taxes for the year		-48,326		235,569		31,138

Balance sheet

Tax effect of temporary differences, including tax loss carry forward, has resulted in deferred tax assets as follows:

	2010		2009
Deferred tax assets		628,687		573,251

Deferred tax assets relate to temporary differences due to certain provisions such as warranty and scrap liabilities and tax losses carry forwards. Deferred tax assets are amounts recognized in countries where we expect to be able to generate corresponding taxable income in the future to benefit from tax reductions.

TEUR 460,650 (TEUR 419,546) of the deferred tax assets refers to tax loss carry-forwards and has been tested against future earning capacity. TEUR 453,168 of the tax loss carry-forwards are related to countries with long or indefinite periods of utilization, mainly Sweden, Brazil and the US. The deferred tax assets are valued at the full amount.

C6. Intangible assets

2010	Licenses, software trademarks and similar rights		Patents		Total
Accumulated acquisition costs
Opening balance January 1		130,979		3,978		134,957
Acquisitions		4,685		—		4,685
Sales/disposals		-32,866		—		-32,866
Translation difference for the year		8,446		—		8,446
Closing balance December 31		111,244		3,978		115,222
Accumulated depreciation
Opening balance January 1		-114,372		-3,978		-118,350
Depreciation		-10,248		—		-10,248
Sales/disposals		32,722		—		32,722
Translation difference for the year		-7,135		—		-7,135
Closing balance December 31		-99,033		-3,978		-103,011
Net carrying value		12,211		—		12,211

20-F 2010            11

2009	Licenses, software trademarks and similar rights		Patents		Total
Accumulated acquisition costs
Opening balance January 1		132,133		3,978		136,111
Acquisitions		4,247		—		4,247
Sales/disposals		-3,978		—		-3,978
Translation difference for the year		-1,423		—		-1,423
Closing balance December 31		130,979		3,978		134,957
Accumulated depreciation
Opening balance January 1		-101,739		-2,993		-104,732
Depreciation		-17,619		-985		-18,604
Sales/disposals		3,814		—		3,814
Translation difference for the year		1,172		—		1,172
Closing balance December 31		-114,372		-3,978		-118,350
Net carrying value		16,607		—		16,607

C7. Tangible assets

2010	Land and buildings		Machinery		Other equipment		Total
Accumulated acquisition costs
Opening balance January 1		53,911		149,756		399,631		603,298
Acquisitions		7,045		11,816		38,198		57,059
Sales/disposals		-8,392		-29,530		-54,555		-92,477
Translation difference for the year		4,861		11,938		48,935		65,734
Closing balance December 31		57,425		143,980		432,209		633,614
Accumulated depreciation
Opening balance January 1		-14,290		-94,395		-322,829		-431,514
Depreciation		-6,977		-18,696		-40,531		-66,204
Sales/disposals		4,690		25,518		40,926		71,134
Translation difference for the year		-1,374		-8,906		-42,270		-52,550
Closing balance December 31		-17,952		-96,480		-364,704		-479,136
Accumulated revaluations
Opening balance January 1		-10,139		-8,846		-3,124		-22,109
Write down		—		-2,180		-399		-2,578
Sales/disposal		—		3,742		191		3,933
Translation difference for the year		-912		2,532		-10		1,609
Closing balance December 31		-11,051		-4,752		-3,342		-19,145
Net carrying value		28,423		42,748		64,163		135,334

20-F 2010            12

2009	Land and buildings		Machinery		Other equipment		Total
Accumulated acquisition costs
Opening balance January 1		55,616		145,550		384,764		585,930
Acquisitions		2,780		10,910		40,689		54,379
Sales/disposals		-3,799		-3,550		-18,728		-26,077
Translation difference for the year		-686		-3,154		-7,094		-10,934
Closing balance December 31		53,911		149,756		399,631		603,298
Accumulated depreciation
Opening balance January 1		-11,358		-74,740		-284,763		-370,861
Depreciation		-5,057		-23,288		-58,811		-87,156
Sales/disposals		1,905		1,507		14,574		17,986
Translation difference for the year		220		2,126		6,171		8,517
Closing balance December 31		-14,290		-94,395		-322,829		-431,514
Accumulated revaluations
Opening balance January 1		—		-5,177		-745		-5,922
Write down		-10,434		-4,005		-2,937		-17,376
Sales/disposal		—		244		565		809
Translation difference for the year		295		92		-7		380
Closing balance December 31		-10,139		-8,846		-3,124		-22,109
Net carrying value		29,482		46,515		73,678		149,675

C8. Other non-current assets

	2010		2009
Deferred tax assets		628,687		573,251
Other non-current assets		27,181		37,570
Total		655,868		610,821

The main part of other non-current assets is prepaid licenses.

C9. Inventory

	2010		2009
Raw material and manufacturing work in process		230,610		225,457
Finished products and goods for resale		229,747		132,684
Inventories, net		460,357		358,141

Reported amounts are net of obsolescence reserves by TEUR 64,219 (TEUR 35,838).

20-F 2010            13

C10. Accounts receivable

	2010		2009
Commercial receivables		857,245		865,572
Provision for doubtful debts		-21,296		-33,499
Total		835,949		832,073

Provisions for doubtful debts have been estimated based on commercial risk evaluations and existing credit insurance agreements have been considered.

C11. Other current assets

	2010		2009
Prepaid expenses		54,323		52,695
Current tax assets		44,579		55,197
Prepaid tooling		5,675		16,683
VAT receivables		72,042		73,799
Other receivables		118,427		181,302
Total		295,046		379,676

C12. Short term cash investments

	2010		2009
Net book value		276,168		524,235
Market value		276,168		524,235

Short term cash investments are held in money-market funds and bank deposits. In 2009 a bank deposit of 35 MEUR, used as cash-collateral, was not included in cash equivalents.

C13. Shareholders’ equity

	Share capital		Restricted reserves		Non- restricted reserves  and net profit/loss for the year		Total shareholders’ equity
Shareholder’s equity December 31, 2008		100,000		445,363		671,585		1,216,948
Changes in cumulative translation adjustments		—		-2,821		1,686		-1,135
Fair value reserve		—		—		1,054		1,054
Transfer between non-restricted and restricted reserves		—		34		-34		—
Net loss for the year		—		—		-835,827		-835,827
Shareholder’s equity December 31, 2009		100,000		442,576		-161,536		381,040
Changes in cumulative translation adjustments		—		25,266		26,514		51,780
Fair value reserve		—		—		8,437		8,437
Transfer between non-restricted and restricted reserves		—		156		-156		—
Net income for the year		—		—		90,468		90,468
Shareholder’s equity December 31, 2010		100,000		467,998		-36,273		531,725

Share capital consists of 100,000,200 shares at a quota value of EUR 1 per share.

Cumulative translation adjustments have been distributed among unrestricted and restricted stockholder’s equity.

The fair value reserve is related to the effective portion of changes in the fair value of hedging instruments that is recognized in equity. Amounts accumulated in equity are recycled in the income statement in the periods in which the

20-F 2010            14

hedged item affects profit or loss, for example, when the forecasted sale which is hedged takes place. The closing balance for fair value reserve after taxes is TEUR 12,403 (TEUR 3,966) and is part of non-restricted reserves.

The transfer between non-restricted and restricted reserves is in accordance with the proposals of the respective companies’ boards of directors. In evaluating the consolidated financial position, it should be noted that earnings in foreign companies may be subject to taxation when transferred to Sweden and, in some instances, such transfer of earnings may be limited by currency restrictions.

C14. Provisions

	2010		2009
Warranty commitments		268,206		390,090
Restructuring expenses		70,957		176,814
Other provisions		52,207		61,209
Total		391,370		628,113

Warranty commitments include provisions for faulty products based on estimated return rates and costs. The best estimate is based on sales, contractual warranty periods and historical failure data of products sold.

C15. Restructuring costs

	2010		2009		2008
Cost of sales		-31,842		-39,285		-74,986
Selling expenses		-3,025		-16,198		-15,951
Administration expenses		-13,761		-24,890		-12,582
Research and development expenses		6,542		-83,903		-62,349
Results from shares in Joint venture		—		—		-8,664
Total		-42,086		-164,276		-174,532
where of;
Write down of assets		-1,597		-26,325		-23,575
Redundancy expenses		-2,777		-87,947		-60,532
Rental agreements		-6,317		-16,933		-15,998
Supplier related expenses		-18,833		-31,168		-68,166
Other		-12,562		-1,903		-6,261
Total		-42,086		-164,276		-174,532

The restructuring costs are related to cost saving programmes announced and launched during 2008 and 2009.

C16. Post-employment benefits

Sony Ericsson participates in local pension plans in countries in which we operate. There are principally two types of pension plans:

• Defined contribution plans, where the Company’s only obligation is to pay fixed pension premiums into a separate entity (a fund or insurance company) on behalf of the employee. No provision for pensions is recognized in the balance sheet other than accruals for premium pensions earned, but not yet paid.

• Defined benefit plans, where the Company’s undertaking is to provide pension benefits that the employees will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation.

20-F 2010            15

In Sony Ericsson most of the companies have defined contribution plans and therefore no pension provisions on the balance sheet. The subsidiaries in Japan, Netherlands, Germany and Mexico have defined benefit plans. In Sweden, the total pension benefits are accounted as defined contribution plans, even though the Financial Accounting Standards Council’s interpretations committee defined the ITP pension plan, financed through insurance with Alecta as a defined benefit plan. Alecta can, however, not provide the information required for the accounting of a defined benefit plan.

Pension costs

2010	Sweden		Netherlands		Japan		Other		Total
Pension cost Defined Benefit Plan		—		-4,360		9,176		168		4,984
Pension cost Defined Contribution Plan		29,289		—		—		11,626		40,915
Total		29,289		-4,360		9,176		11,794		45,899
2009	Sweden		Netherlands		Japan		Other		Total
Pension cost Defined Benefit Plan		—		337		6,473		564		7,374
Pension cost Defined Contribution Plan		28,562		—		—		9,052		37,614
Total		28,562		337		6,473		9,616		44,988
Provisions for post-employment benefits
2010	Sweden		Netherlands		Japan		Other		Total
Provision for post employee benefits		—		883		19,301		3,294		23,478
Other employee benefits		—		—		—		988		988
Total		—		883		19,301		4,282		24,466
2009	Sweden		Netherlands		Japan		Other		Total
Provision for post employee benefits		—		5,243		14,639		3,359		23,241
Other employee benefits		—		—		—		863		863
Total		—		5,243		14,639		4,222		24,104

C17. Long-term liabilities

Maturity dates for the group long-term liabilities, TEUR 107,838 (TEUR 5,940), are within 1-5 years.

C18. Other current liabilities

	2010		2009
Accrued personnel related expenses		112,849		114,274
Accrued sales related expenses		485,634		590,308
Other accrued expenses		182,624		197,466
Other short term liabilities		164,410		139,989
Total		945,517		1,042,037

Accrued sales related expenses include sales bonuses, such as quarterly and yearly bonuses, quality bonus, co-op and stock protection.

20-F 2010            16

C19. Assets pledged as collateral

	2010		2009
Liabilities to financial institutions
Bank deposits		—		35,000
Other		27		264
Total		27		35,264

The bank deposit in 2009 was made in order for a bank guarantee to be issued.

C20. Contingent liabilities

	2010		2009
Other contingent liabilities		3,603		3,229
Total		3,603		3,229

Other contingent liabilities mainly include guarantees for loans.

C21. Adjustments to reconcile net income to cash

	2010		2009		2008
Deferred tax income		-31,331		-267,645		-113,414
Minority interest		8,508		28,720		21,283
Interest		2,102		960		9
Tax		41,255		-35,737		-65,185
Change in provisions (note C14 & C16)		-256,612		32,747		151,660
Revaluation of share in Joint venture		—		—		22,649
Write-down on non-current assets		2,578		17,376		5,497
Gains and losses on disposal of non-current assets		-4,731		376		-19,621
Other		6,704		5,375		16,050
Total		-231,527		-217,828		18,928

C22. Leasing

	2010		2009		2008
Leasing costs		65,416		72,868		63,185

Future payments for operating leases and rents

2011	50,565
2012	48,755
2013	43,345
2014	31,886
2015	29,149
2016 and future	37,323

The purpose of leases mainly refers to rents and office equipment.

20-F 2010            17

C23. Wages, salaries and social security expenses

Wages and salaries

	2010		2009		2008
Wages and salaries		432,718		532,905		589,248
Social security expenses		124,898		133,504		171,105
Of which pension costs		45,899		44,988		52,038
Of which
CO compensation		1,571		1,433		908
CO pension costs		263		115		46
bonus & similar to CO		761		42		1,020

Severance pay

For the President and the Corporate Management the following applies:

Severance payments are not payable if an employee resigns voluntarily, or if the employment is terminated as a result of flagrant disregard of responsibilities. An exception to this is if the notice of termination given by the employee is due directly to significant structural changes or other events that affect the content of work or the condition of the position. In such an instance, the notice is treated as if it were given by the Company and severance payments are made to the individual. Upon termination of employment, severance pay amounting to one years’ salary is normally paid. The severance payments will be paid out during agreed severance period.

Pension

Sony Ericsson’s policy regarding pension is to follow the competitive practice in the home country of the executive. There are different supplementary pension plans for the President and the Corporate Management. As major pension arrangements, the total pension base salary consists of the annual base salary and the target pay out according to the short term incentive plan. The company pays to the capital insurance company on salary portions in excess of 20 base amounts (one base amount = SEK 42,400) a percentage of the executive’s total pension based salary, between 25 and 35 percent per year, depending on the age of the executive.

Long term incentive

Sony Ericsson has a long term incentive program for certain employees. The calculation of the long term incentives is based on the performance of the Group and payments for the units allocated are vested in three years. The size of the units is approved by the Shareholders’ Remuneration Advisory Group.

Wages and salaries by geographical area

	2010		2009		2008
Europe * and Middle East & Africa		224,685		307,351		365,751
Americas		56,152		81,241		88,642
Asia Pacific		151,881		144,313		134,855
Total		432,718		532,905		589,248
* Of which Sweden		165,460		228,174		258,487
* Of which EU excl. Sweden		52,491		70,571		96,166

20-F 2010            18

Number of employees

	2010				2009				2008
	Men		Women		Men		Women		Men		Women
Europe * and Middle East & Africa		2,600		1,025		3,067		1,234		3,319		1,395
Americas		413		140		547		180		677		223
Asia Pacific		2,780		2,201		2,985		2,252		3,018		2,271
Total		5,793		3,366		6,599		3,665		7,015		3,890
* Of which Sweden		2,147		791		2,438		930		2,573		1,030
* Of which EU excl. Sweden		289		143		425		184		654		299

Distribution of female/male for the Board of Directors and other persons in leading positions

	2010					2009					2008
	Number on balance day		whereof men			Number on balance day		whereof men			Number on balance day		whereof men
Consolidated (including subsidiaries)
Members of the board		87		96.6	%		95		97.9	%		94		97.8	%
Presidents and Executive Vice presidents		15		100.0	%		15		100.0	%		14		100.0	%

C24. Fees to auditors

	2010		2009		2008
PricewaterhouseCoopers
Audit fees		1,668		1,427		1,609
Fees for audit services besides the audit assignment		182		416		756
Fees for tax services		102		267		—
Total		1,952		2,110		2,365

The amount for audit fees to other than PricewaterhouseCoopers is TEUR 212 (TEUR 117).

C25. Financial risks

Foreign exchange risk - Transaction exposure

Sony Ericsson’s results are presented in EUR; the company’s hedging is based on EUR being the risk free currency. The group has sales and cost of sales in a large number of currencies. The main part of the net exposure is concentrated to the main holding company. The group’s currency exposure is hedged up to 8 months. The group’s net exposure is to approximately 80% made up of USD, JPY, GBP and SEK. The currency exposure is primarily hedged with forward contracts. The market value of derivatives not being used to revalue balance sheet items by December 31, 2010 was EUR 13.7 millions, all of these derivatives were forward contracts.

Foreign exchange risk - Translation exposure

All equity in the group’s companies is translated in accordance with the “current method” hence the translation exposure is taken directly to equity in the balance sheet. This type of currency exposure is not hedged.

20-F 2010            19

Interest rate risk

Sony Ericsson’s interest rate risk is primarily derived from cash and short term deposits, other balance sheet items are to a very small extent affected by shifts in the interest rate. Cash and short-term deposits amount to EUR 605 million at year end 2010, with an investment horizon shorter than twelve months. Short term borrowing amounted to EUR 130 million.

Credit Risk

Credit risk is divided into two categories; credit risk in trade receivables and financial credit risk.

Credit risk in Trade receivables

The value of outstanding trade receivables was at year end EUR 836 million. Provisions for expected losses at year end were EUR 21.3 million. 54% of the trade receivables are towards countries with a country risk in the interval “negligible to moderate”. Approximately 54% of Sony Ericsson’s outstanding AR is insured against non-payment by the customer.

Financial credit risk

Financial instruments carry an element of risk in that counterparts may be unable to fulfill their payment obligations. These exposures arise in the investments of cash and cash equivalents and from derivative positions with positive unrealized result against banks and other counterparties. Sony Ericsson mitigates a major part of these risks by investing cash in governmental risk with high rating. Part of the liquidity is also deposited with a few chosen banks with the highest possible short-term rating. How much to be invested with each fund and bank is regulated in policy.

Liquidity risk

The liquidity risk is that Sony Ericsson is unable to meet its short term payment obligations due to insufficient or illiquid cash reserves. At year end Sony Ericsson had a net cash position of EUR 375 million invested in liquid funds and short deposits with banks. In addition to cash in the balance sheet, there is an undrawn committed credit facility of EUR 120 million maturing 2011 in place as a liquidity reserve.

C26. Liabilities to financial institutions

	2010		2009
Liabilities to financial institutions, non-current		100,000		—
Liabilities to financial institutions, current		133,081		258,273
		233,081		258,273

The external borrowing decreased during the year by Euro 28 million (excluding accrued interest) with an outstanding debt at the end December of Euro 230 million. The cash flow from operating activities for 2010 was negative Euro 247 million, mainly due to payments related to the transformation programme.

In 2009, Sony Ericsson secured external funding of Euro 458 million, of which Euro 258 million is utilised at the balance sheet date. The facilities are including a two-year committed back-up facility of Euro 200 million, which was not utilised as of December 31, 2009. The parent companies guaranteed Euro 350 million of the bank facilities on a 50/50 basis. The utilized facilities had an initial maturity of 12 to 13 months and were drawn in August to October 2009.

As mentioned above, parts of the external funding were raised through support from the parent companies. Raising the funding without support from the parents would not have resulted in conditions that would have had a material impact on the income statement.

20-F 2010            20

In the beginning of the first quarter 2011 a mix of loan maturing and new facilities increased the net funding capacity with EUR 100 million. Sony Ericsson utilized existing facilities and borrowed EUR 450 million (including loans). Existing facilities and loans mature during 2011-12.

C27. Group companies

Company	Domicile	Percentage of ownership
Sony Ericsson Mobile Communications AB	Sweden
Beijing SE Potevio Mobile Communications Company Ltd. (BMC)	China		51	%
Beijing Suohong Electronics Co. Ltd., (BSE)	China		100	%
LLC Sony Ericsson Mobile Communications Rus	Russia		100	%
Sony Ericsson Hungary Mobile Communications Ltd.	Hungary		100	%
Sony Ericsson Mobile Communications S.A. de C.V.	Mexico		100	%
Sony Ericsson Mobile Communications (China) Co., Ltd.	China		100	%
Sony Ericsson Mobile Communications (India) Private Limited	India		100	%
Sony Ericsson Mobile Communications (Thailand) Co., Limited	Thailand		100	%
Sony Ericsson Mobile Communications (USA) Inc.	US		100	%
Sony Ericsson Mobile Communications do Brazil Ltd.	Brazil		100	%
Sony Ericsson Mobile Communications Hellas S.A.	Greece		100	%
Sony Ericsson Mobile Communications Iberia, S.L.	Spain		100	%
Sony Ericsson Mobile Communications International AB	Sweden		100	%
Sony Ericsson Mobile Communications Japan Inc.	Japan		100	%
Sony Ericsson Mobile Communications Management Ltd	UK		100	%
Sony Ericsson Mobile Communications Nigeria Limited	Nigeria		100	%
Sony Ericsson Mobile Communications S.p.A., Italy	Italy		100	%
Sony Ericsson Servicios Moviles, S.A. de C.V	Mexico		100	%

C28. Reconciliation to accounting principles generally accepted in the United States

The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in Sweden for unlisted companies, applying the Swedish Annual Accounts Act (ÅRL), the Swedish Accounting Standards Board’s (Bokföringsnämnden, BFN) recommendations and the Recommendation of the Swedish Financial Accounting Standards Council, (RR29), Remunerations to employees, which differs in certain significant respects from the generally accepted accounting principles in the United States (“US GAAP”). Sony Ericsson Mobile Communications has reconciled its net income / loss and equity under Swedish GAAP to the accounting principles according to generally accepted principles in the United States.

The principle differences between Swedish GAAP and US GAAP that affect our net income, as well as our stockholders equity relate to the treatment of business combinations (negative goodwill), synthetic option plan and restructuring costs.

Business combinations - Negative Goodwill

Under both Swedish GAAP and US GAAP, when the fair value of net assets acquired exceeds total purchase price, the Company first assesses whether all acquired assets and assumed liabilities have been properly identified and valued. Under Swedish GAAP, negative goodwill is not subject to amortization and any excess remaining after reassessment is recognized in income statement immediately. During 2004, a negative goodwill amounted to TEUR 3 717 was identified by the Company in connection with the acquisition of Beijing SE Potevio Mobile Communications Co. Ltd (BMC), and it was recognized in income statement by the end of 2004.

20-F 2010            21

Under US GAAP at the time of the acquisition, the Company must first reassess whether all acquired assets and assumed liabilities have been identified and properly valued. If an amount of negative goodwill still results after this reassessment, all acquired assets (including research and development assets) are then subject to pro rata reduction, except for (1) financial assets other than investments accounted for by the equity method, (2) assets to be disposed of by sale, (3) deferred taxes, (4) prepaid assets relating to pension and other postretirement benefit plans, and (5) any other current assets. If all eligible assets are reduced to zero and an amount of negative goodwill still remains, the remaining unallocated negative goodwill must be recognized immediately as an extraordinary gain.

Provision for social security cost on synthetic option plan

Under Swedish GAAP, the Company accrues social security costs for the synthetic option plan during the vesting period. Under US GAAP, no social security cost is recorded until the options are exercised or matching of the options takes place, which increases net income by TEUR 228 in 2009. The synthetic options are all exercised and matched and the remaining difference between Swedish GAAP and US GAAP as of December 31, 2009 was nil.

Restructuring costs

Under Swedish GAAP a provision for severance pay is recognized when a constructive obligation to restructure arises which requires that a detailed formal plan has been communicated to those affected by it. The implementation needs to be planned to begin as soon as possible and to be completed in a timeframe that makes significant changes to the plan unlikely. Under US GAAP provisions for severance pay representing a one-time benefit is recognized over the remaining service period, if extended service period is required, when a company has a detailed formal plan which has been communicated to those affected. If an entity under Swedish GAAP has a contract that is onerous, the present obligation under the contract shall be recognized and measured as a provision. Under US GAAP, costs to terminate a contract before the end of its term should be recognized as a liability and measured at fair value when the entity terminates the contract in accordance with the contract terms or when the premises have been vacated. A liability for costs that will continue to be incurred under a contract for its remaining term without economic benefit to the entity should be recognized and measured at its fair value when the entity ceases to use the right conveyed by the contract. Sony Ericsson has identified a difference between US GAAP and Swedish GAAP of TEUR 3,742 (TEUR 12,874) related to leasehold property that has not yet been terminated or vacated and thus not qualified as provisions in accordance with US GAAP.

Post-employment benefits

To calculate the annual expenses for the defined benefit plans, Sony Ericsson uses the corridor method. The amount recognized in the income statement which is the difference to US GAAP is not material.

Deferred Income Taxes

Deferred tax is calculated on US GAAP adjustments and the US GAAP balance sheet disclosure reflects the gross recognition of deferred tax assets and liabilities.

Non-current and current assets

Swedish GAAP requires deferred tax assets to be classified as non-current assets on the balance sheet. Under US GAAP, deferred tax liabilities and assets are classified as current or non-current based on the classification of the related asset or liability for financial reporting. A deferred tax liability or asset that is not related to an asset or liability for financial reporting, including deferred tax assets related to carry forwards, shall be classified according to the expected reversal date of the temporary difference. The balance sheet shows a difference in non-current and current assets between Swedish GAAP and US GAAP which relates to the classification of deferred tax assets.

20-F 2010            22

Adjustment of net income, comprehensive income, equity and balance sheet items

Application of US GAAP as described above would have had the following effects on consolidated net income.

Adjustment of Net Income

	2010		2009		2008
Net income per Swedish GAAP		90,468		-835,827		-72,890
US GAAP adjustments before taxes:
Business Combination		—		763		100
Synthetic Option Plan		—		228		1,018
Restructuring		-9,131		-2,624		15,498
Tax effect of US GAAP adjustment		2,257		595		-4,339
Net income in accordance with US GAAP		83,594		-836,865		-60,613

Adjustments of stockholders’ equity

	2010		2009
Equity as reported per Swedish GAAP		531,725		381,040
US GAAP adjustments before taxes:
Restructuring		3,742		12,874
Deferred tax effect of US GAAP adjustment		-880		-3,292
Stockholders’ equity in accordance with US GAAP		534,587		390,622
Minority interest		42,286		47,364
Total equity in accordance with US GAAP		576,873		437,986

Comprehensive income

	2010		2009		2008
Net income in accordance with US GAAP		83,594		-836,865		-60,613
Other comprehensive income
Gain/loss on cash flow hedges		11,373		1,409		10,191
Translation adjustment		52,290		-1,409		30,008
Deferred tax		-2,935		-355		-2,785
Total other comprehensive income		60,728		-355		37,414
Comprehensive income in accordance with US GAAP		144,322		-837,220		-23,199

Balance sheet items according to Swedish GAAP and US GAAP

	Swedish GAAP				US GAAP
	Dec. 31 2010		Dec. 31 2009		Dec. 31 2010		Dec. 31 2009
Non-current assets		803,413		777,102		550,377		623,398
Current assets		2,196,036		2,483,010		2,448,191		2,633,422
Total Assets		2,999,449		3,260,112		2,998,569		3,256,820
Stockholders equity		531,725		381,041		534,587		390,623
Minority interest		42,286		47,364		42,286		47,364
Provisions		423,673		652,214		419,931		639,340
Non-current liabilities		100,000		5,940		100,000		5,940
Current liabilities		1,901,765		2,173,553		1,901,765		2,173,553
Total stockholders’ equity and liabilities		2,999,449		3,260,112		2,998,569		3,256,820

20-F 2010            23