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
October 17, 2019
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): ☐
Announcement of LM Ericsson Telephone Company, October 17, 2019 regarding Third quarter report 2019.
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/ XAVIER DEDULLEN | |
Xavier Dedullen | ||
Senior Vice President, Chief Legal Officer | ||
By: | /s/ CARL MELLANDER | |
Carl Mellander | ||
Senior Vice President, Chief Financial Officer |
Date: October 17, 2019
Third quarter report 2019
Stockholm, October 17, 2019
Third quarter highlights |
Sales were SEK 57.1 (53.8) b. Sales adjusted for comparable units and currency increased by 3% driven by strong growth in North America and North East Asia. Reported sales grew by 6%. |
Operating income was impacted by cost provisions of USD -1.2 b. (SEK -11.5 b.) related to a resolution of the investigations by SEC and DOJ in the US and a refund of social security costs of SEK 0.9 b., referred to as items affecting comparability in the report. |
Operating income was SEK 6.5 b. (11.4% operating margin) when excluding restructuring charges and items affecting comparability. Reported operating income was SEK -4.2 (3.2) b. |
Gross margin excluding restructuring charges was 37.8% (36.9%) with improvements in Managed Services, Digital Services and Networks. Reported gross margin was 37.7% (36.5%). |
Net income was SEK -6.9 (2.7) b., negatively impacted by items affecting comparability. |
Free cash flow excluding M&A was SEK 5.5 (0.7) b. Net cash increased to SEK 37.4 (32.0) b. |
Investor Update key messages (more details on page 13)
Focused business strategy remains and the Company is tracking towards the new financial targets: |
Sales ambition of SEK 230-240 b. for 2020 (previously SEK 210-220 b.), based on a SEK/USD rate of 9.50. |
Operating margin target for 2020, excluding restructuring charges, remains unchanged at >10% of sales. This incorporates continued dilutive impact from strategic contracts, an initially higher cost level for newly introduced 5G products and a target adjustment for segment Emerging Business and Other to SEK -1.5 to -2.0 b. (previously break-even). |
Operating margin target of 12-14% for 2022 (previously >12%), excluding restructuring charges, based on an ambition to grow faster than the market in combination with leverage from investments in market position and R&D. |
SEK b. |
Q3 2019 |
Q3 2018 |
YoY change |
Q2 2019 |
QoQ change |
Jan-Sep 2019 |
Jan-Sep 2018 |
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Net sales |
57.1 | 53.8 | 6 | % | 54.8 | 4 | % | 160.8 | 147.0 | |||||||||||||||||||
Sales growth adj. for comparable units and currency |
| | 3 | % | | | | | ||||||||||||||||||||
Gross margin |
37.7 | % | 36.5 | % | | 36.6 | % | | 37.5 | % | 35.2 | % | ||||||||||||||||
Gross margin excluding restructuring charges |
37.8 | % | 36.9 | % | | 36.7 | % | | 37.6 | % | 36.5 | % | ||||||||||||||||
Operating income (loss) |
-4.2 | 3.2 | | 3.7 | | 4.4 | 3.1 | |||||||||||||||||||||
Operating margin |
-7.3 | % | 6.0 | % | | 6.8 | % | | 2.8 | % | 2.1 | % | ||||||||||||||||
Operating income excl.restr.charges & items affecting comparability ¹) |
6.5 | 3.8 | 71 | % | 3.9 | 68 | % | 14.0 | 6.7 | |||||||||||||||||||
Operating margin excl.restr.charges & items affecting comparability ¹) |
11.4 | % | 7.0 | % | | 7.0 | % | | 8.7 | % | 4.6 | % | ||||||||||||||||
Net income (loss) |
-6.9 | 2.7 | | 1.8 | | -2.6 | 0.2 | |||||||||||||||||||||
EPS diluted, SEK |
-1.89 | 0.83 | | 0.51 | | -0.67 | 0.01 | |||||||||||||||||||||
Free cash flow excluding M&A |
5.5 | 0.7 | | 2.2 | 147 | % | 11.8 | 1.3 | ||||||||||||||||||||
Net cash, end of period |
37.4 | 32.0 | 17 | % | 33.8 | 11 | % | 37.4 | 32.0 |
1) | Operating income excluding restructuring charges in all periods. Excluding cost provisions related to resolution of the SEC and DOJ investigations of SEK -11.5 b. and refund of social security costs of SEK 0.9 b. in Q3 2019. Excluding a capital gain related to the divestment of MediaKind of SEK 0.7 b. and a reversal of a provision for impairment of trade receivables of SEK 0.7 b. in Q1 2019. |
Non-IFRS financial measures are reconciled to the most directly reconcilable line items in the financial statements at the end of this report.
1 | Ericsson | Third quarter report 2019 |
CEO comments
2 | Ericsson | Third quarter report 2019 | CEO comments |
3 | Ericsson | Third quarter report 2019 | Financial highlights |
Financial highlights
SEK b. |
Q3 2019 |
Q3 2018 |
YoY change |
Q2 2019 |
QoQ change |
Jan-Sep 2019 |
Jan-Sep 2018 |
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Net sales |
57.1 | 53.8 | 6 | % | 54.8 | 4 | % | 160.8 | 147.0 | |||||||||||||||||||
Sales growth adj. for comparable units and currency |
| | 3 | % | | | | | ||||||||||||||||||||
Gross income |
21.5 | 19.6 | 10 | % | 20.1 | 7 | % | 60.4 | 51.8 | |||||||||||||||||||
Gross margin |
37.7 | % | 36.5 | % | | 36.6 | % | | 37.5 | % | 35.2 | % | ||||||||||||||||
Research and development (R&D) expenses |
-9.5 | -9.4 | | -9.5 | | -28.2 | -28.2 | |||||||||||||||||||||
Selling and administrative expenses |
-4.9 | -6.6 | | -7.0 | | -17.9 | -19.8 | |||||||||||||||||||||
Impairment losses on trade receivables |
0.2 | -0.4 | | 0.2 | 32 | % | 0.9 | -0.8 | ||||||||||||||||||||
Other operating income and expenses |
-11.3 | 0.0 | | 0.1 | | -10.5 | 0.1 | |||||||||||||||||||||
Operating income (loss) |
-4.2 | 3.2 | | 3.7 | | 4.4 | 3.1 | |||||||||||||||||||||
Operating margin |
-7.3 | % | 6.0 | % | | 6.8 | % | | 2.8 | % | 2.1 | % | ||||||||||||||||
Financial income and expenses, net |
-0.7 | -0.6 | | -0.4 | | -1.7 | -2.0 | |||||||||||||||||||||
Taxes |
-2.0 | 0.1 | | -1.5 | | -5.4 | -0.9 | |||||||||||||||||||||
Net income (loss) |
-6.9 | 2.7 | | 1.8 | | -2.6 | 0.2 | |||||||||||||||||||||
Restructuring charges |
-0.1 | -0.6 | | -0.1 | | -0.5 | -3.6 | |||||||||||||||||||||
Gross income excluding restructuring charges |
21.6 | 19.8 | 9 | % | 20.1 | 7 | % | 60.5 | 53.7 | |||||||||||||||||||
Gross margin excluding restructuring charges |
37.8 | % | 36.9 | % | | 36.7 | % | | 37.6 | % | 36.5 | % | ||||||||||||||||
R&D expenses excluding restructuring charges |
-9.4 | -9.2 | | -9.5 | | -27.9 | -27.2 | |||||||||||||||||||||
SG&A expenses excluding restructuring charges |
-4.9 | -6.5 | | -6.9 | | -17.8 | -19.2 | |||||||||||||||||||||
Operating income (loss) excl. restructuring charges |
-4.0 | 3.8 | | 3.9 | | 4.9 | 6.7 | |||||||||||||||||||||
Operating margin excluding restructuring charges |
-7.1 | % | 7.0 | % | | 7.0 | % | | 3.1 | % | 4.6 | % | ||||||||||||||||
Operating income excl.restr.charges & items affecting comparability ¹) |
6.5 | 3.8 | 71 | % | 3.9 | 68 | % | 14.0 | 6.7 | |||||||||||||||||||
Operating margin excl.restr.charges & items affecting comparability ¹) |
11.4 | % | 7.0 | % | | 7.0 | % | | 8.7 | % | 4.6 | % |
1 | Operating income excluding restructuring charges in all periods. Excluding cost provisions related to resolution of the SEC and DOJ investigations of SEK -11.5 b. and refund of social security costs of SEK 0.9 b. in Q3 2019. Excluding a capital gain related to the divestment of MediaKind of SEK 0.7 b. and a reversal of a provision for impairment of trade receivables of SEK 0.7 b. in Q1 2019. |
4 | Ericsson | Third quarter report 2019 | Financial highlights |
5 | Ericsson | Third quarter report 2019 | Financial highlights |
6 | Ericsson | Third quarter report 2019 | Financial highlights |
Market area sales
Q3 2019 | Change | |||||||||||||||||||||||||||
SEK b. |
Networks | Digital Services |
Managed Services |
Emerging Business and Other |
Total | YoY | QoQ | |||||||||||||||||||||
South East Asia, Oceania and India |
5.5 | 0.9 | 1.0 | 0.0 | 7.4 | -7 | % | 7 | % | |||||||||||||||||||
North East Asia |
4.8 | 1.3 | 0.2 | 0.0 | 6.4 | 10 | % | -2 | % | |||||||||||||||||||
North America |
15.1 | 2.7 | 1.2 | 0.0 | 19.0 | 27 | % | 7 | % | |||||||||||||||||||
Europe and Latin America |
8.2 | 3.0 | 3.0 | 0.1 | 14.3 | -3 | % | 2 | % | |||||||||||||||||||
Middle East and Africa |
3.5 | 1.6 | 0.9 | 0.0 | 6.0 | 4 | % | 7 | % | |||||||||||||||||||
Other¹) |
2.1 | 0.4 | 0.0 | 1.4 | 4.0 | -13 | % | 2 | % | |||||||||||||||||||
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Total |
39.3 | 9.9 | 6.4 | 1.6 | 57.1 | 6 | % | 4 | % | |||||||||||||||||||
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1) | Market Area Other includes primarily licensing revenues and the major part of segment Emerging Business and Other. |
7 | Ericsson | Third quarter report 2019 | Market area sales |
Segment results
Networks
SEK b. |
Q3 2019 |
Q3 2018 |
YoY change |
Q2 2019 |
QoQ change |
Jan-Sep 2019 |
Jan-Sep 2018 |
|||||||||||||||||||||
Net sales |
39.3 | 35.9 | 9 | % | 37.8 | 4 | % | 110.6 | 96.9 | |||||||||||||||||||
Of which products |
27.5 | 25.3 | 9 | % | 26.7 | 3 | % | 78.0 | 67.1 | |||||||||||||||||||
Of which IPR licensing revenues |
2.0 | 1.8 | 12 | % | 1.8 | 7 | % | 5.9 | 4.8 | |||||||||||||||||||
Of which services |
11.8 | 10.6 | 11 | % | 11.1 | 6 | % | 32.6 | 29.8 | |||||||||||||||||||
Sales growth adjusted for comparable units and currency |
| | 4 | % | | | | | ||||||||||||||||||||
Gross income |
16.3 | 14.8 | 10 | % | 15.7 | 4 | % | 46.5 | 38.5 | |||||||||||||||||||
Gross margin |
41.6 | % | 41.3 | % | | 41.4 | % | | 42.0 | % | 39.7 | % | ||||||||||||||||
Operating income |
7.2 | 5.7 | 28 | % | 5.7 | 27 | % | 18.4 | 12.6 | |||||||||||||||||||
Operating margin |
18.4 | % | 15.7 | % | | 15.0 | % | | 16.6 | % | 13.0 | % | ||||||||||||||||
Restructuring charges |
0.0 | -0.1 | | 0.0 | | 0.0 | -1.4 | |||||||||||||||||||||
Gross income excl.restructuring charges |
16.3 | 14.9 | 10 | % | 15.7 | 4 | % | 46.4 | 39.5 | |||||||||||||||||||
Gross margin excl.restructuring charges |
41.6 | % | 41.5 | % | | 41.4 | % | | 42.0 | % | 40.7 | % | ||||||||||||||||
Operating income excl.restructuring charges |
7.2 | 5.8 | 25 | % | 5.7 | 27 | % | 18.4 | 13.9 | |||||||||||||||||||
Operating margin excl.restructuring charges |
18.4 | % | 16.1 | % | | 15.0 | % | | 16.6 | % | 14.4 | % |
8 | Ericsson | Third quarter report 2019 | Segment results |
Digital Services
SEK b. |
Q3 2019 |
Q3 2018 |
YoY change |
Q2 2019 |
QoQ change |
Jan-Sep 2019 |
Jan-Sep 2018 |
|||||||||||||||||||||
Net sales |
9.9 | 9.0 | 10 | % | 9.0 | 10 | % | 26.7 | 25.1 | |||||||||||||||||||
Of which products |
5.6 | 4.6 | 22 | % | 4.6 | 21 | % | 14.1 | 13.0 | |||||||||||||||||||
Of which IPR licensing revenues |
0.4 | 0.4 | 12 | % | 0.4 | 7 | % | 1.3 | 1.0 | |||||||||||||||||||
Of which services |
4.3 | 4.4 | -3 | % | 4.4 | -2 | % | 12.5 | 12.1 | |||||||||||||||||||
Sales growth adjusted for comparable units and currency |
| | 5 | % | | | | | ||||||||||||||||||||
Gross income |
3.7 | 3.2 | 17 | % | 3.3 | 13 | % | 9.9 | 9.6 | |||||||||||||||||||
Gross margin |
37.9 | % | 35.7 | % | | 36.8 | % | | 37.2 | % | 38.1 | % | ||||||||||||||||
Operating income (loss) |
-0.7 | -1.8 | | -1.4 | | -3.9 | -6.8 | |||||||||||||||||||||
Operating margin |
-6.7 | % | -19.9 | % | | -15.6 | % | | -14.5 | % | -27.0 | % | ||||||||||||||||
Restructuring charges |
-0.1 | -0.4 | | -0.1 | | -0.4 | -1.8 | |||||||||||||||||||||
Gross income excl.restructuring charges |
3.8 | 3.3 | 14 | % | 3.3 | 13 | % | 10.1 | 10.2 | |||||||||||||||||||
Gross margin excl.restructuring charges |
38.3 | % | 36.9 | % | | 37.1 | % | | 37.7 | % | 40.7 | % | ||||||||||||||||
Operating income (loss) excl.restructuring charges |
-0.5 | -1.4 | | -1.3 | | -3.5 | -4.9 | |||||||||||||||||||||
Operating margin excl.restructuring charges |
-5.4 | % | -15.9 | % | | -14.6 | % | | -12.9 | % | -19.7 | % |
9 | Ericsson | Third quarter report 2019 | Segment results |
Managed Services
SEK b. |
Q3 2019 |
Q3 2018 |
YoY change |
Q2 2019 |
QoQ change |
Jan-Sep 2019 |
Jan-Sep 2018 |
|||||||||||||||||||||
Net sales |
6.4 | 6.5 | -2 | % | 6.3 | 1 | % | 18.5 | 18.9 | |||||||||||||||||||
Sales growth adjusted for comparable units and currency |
| | -5 | % | | | | | ||||||||||||||||||||
Gross income |
1.1 | 0.8 | 41 | % | 0.8 | 46 | % | 3.0 | 2.1 | |||||||||||||||||||
Gross margin |
17.9 | % | 12.5 | % | | 12.3 | % | | 15.9 | % | 11.1 | % | ||||||||||||||||
Operating income |
0.6 | 0.4 | 37 | % | 0.2 | 177 | % | 2.0 | 0.8 | |||||||||||||||||||
Operating margin |
8.8 | % | 6.3 | % | | 3.2 | % | | 10.9 | % | 4.3 | % | ||||||||||||||||
Restructuring charges |
0.0 | 0.0 | | 0.0 | | 0.0 | -0.2 | |||||||||||||||||||||
Gross income excl.restructuring charges |
1.1 | 0.8 | 37 | % | 0.8 | 47 | % | 3.0 | 2.3 | |||||||||||||||||||
Gross margin excl.restructuring charges |
17.9 | % | 12.9 | % | | 12.3 | % | | 15.9 | % | 12.1 | % | ||||||||||||||||
Operating income excl.restructuring charges |
0.6 | 0.4 | 28 | % | 0.2 | 179 | % | 2.0 | 1.0 | |||||||||||||||||||
Operating margin excl.restructuring charges |
8.9 | % | 6.8 | % | | 3.2 | % | | 10.9 | % | 5.4 | % | ||||||||||||||||
Operating income excl.restr.charges & items affecting comparability ¹) |
0.6 | 0.4 | 28 | % | 0.2 | 179 | % | 1.3 | 1.0 | |||||||||||||||||||
Operating margin excl.restr.charges & items affecting comparability ¹) |
8.9 | % | 6.8 | % | | 3.2 | % | | 6.9 | % | 5.4 | % |
1 | Operating income excluding restructuring charges in all periods and excluding a reversal of a provision for impairment of trade receivables of SEK 0.7 b. in Q1 2019. |
10 | Ericsson | Third quarter report 2019 | Segment results |
Emerging Business and Other (includes Emerging Business, iconectiv, Red Bee Media and Media Solutions)
SEK b. |
Q3 2019 |
Q3 2018 |
YoY change |
Q2 2019 |
QoQ change |
Jan-Sep 2019 |
Jan-Sep 2018 |
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Net sales |
1.6 | 2.4 | -33 | % | 1.7 | -3 | % | 5.1 | 6.1 | |||||||||||||||||||
Of which Emerging Business and iconectiv |
1.1 | 1.0 | 8 | % | 1.0 | 1 | % | 3.1 | 2.3 | |||||||||||||||||||
Of which Red Bee Media |
0.6 | 0.7 | -16 | % | 0.6 | -6 | % | 1.8 | 1.8 | |||||||||||||||||||
Of which Media Solutions |
0.0 | 0.7 | | 0.0 | | 0.1 | 2.0 | |||||||||||||||||||||
Sales growth adjusted for comparable units and currency |
| | -7 | % | | | | | ||||||||||||||||||||
Gross income |
0.3 | 0.8 | -58 | % | 0.3 | 5 | % | 1.0 | 1.6 | |||||||||||||||||||
Gross margin |
20.2 | % | 32.3 | % | | 18.5 | % | | 20.8 | % | 26.6 | % | ||||||||||||||||
Operating income (loss) |
-11.3 | -1.0 | | -0.7 | | -12.1 | -3.5 | |||||||||||||||||||||
Operating margin |
-695.8 | % | -42.9 | % | | -44.1 | % | | -239.0 | % | -57.4 | % | ||||||||||||||||
Restructuring charges |
0.0 | 0.0 | | 0.0 | | 0.0 | -0.2 | |||||||||||||||||||||
Gross income excl.restructuring charges |
0.3 | 0.8 | -57 | % | 0.3 | 4 | % | 1.1 | 1.7 | |||||||||||||||||||
Gross margin excl.restructuring charges |
20.5 | % | 32.3 | % | | 19.2 | % | | 21.1 | % | 28.5 | % | ||||||||||||||||
Operating income excl.restructuring charges |
-11.3 | -1.0 | | -0.7 | | -12.0 | -3.3 | |||||||||||||||||||||
Of which Emerging Business, iconectiv and common costs |
-0.5 | -0.6 | | -0.5 | | -1.5 | -1.9 | |||||||||||||||||||||
Of which Red Bee Media |
0.0 | 0.0 | | 0.0 | | 0.0 | -0.2 | |||||||||||||||||||||
Of which Media Solutions |
-0.3 | -0.4 | | -0.2 | | 0.0 | -1.2 | |||||||||||||||||||||
Of which adjustments in Q3 2019 ¹) |
-10.5 | | | | | -10.5 | | |||||||||||||||||||||
Operating margin excl.restructuring charges |
-695.1 | % | -41.5 | % | | -42.8 | % | | -238.2 | % | -53.8 | % | ||||||||||||||||
Operating income excl.restr.charges & items affecting comparability ²) |
-0.8 | -1.0 | | -0.7 | | -2.2 | -3.3 | |||||||||||||||||||||
Operating margin excl.restr.charges & items affecting comparability ²) |
-46.6 | % | -41.5 | % | | -42.8 | % | | -44.0 | % | -53.8 | % |
1 | Cost provisions related to a resolution of the SEC and DOJ investigations of SEK -11.5 b. and refund of social security costs of SEK 0.9 b. in Q3 2019. |
2 | Operating income excluding restructuring charges in all periods. Excluding cost provisions related to a resolution of the SEC and DOJ investigations of SEK -11.5 b. and refund of social security costs of SEK 0.9 b. in Q3 2019. Excluding a capital gain related to the divestment of MediaKind of SEK 0.7 b. in Q1 2019. |
11 | Ericsson | Third quarter report 2019 | Segment results |
12 | Ericsson | Third quarter report 2019 | Segment results |
Cash flow
SEK b. |
Q3 2019 |
Q3 2018 |
Q2 2019 |
Jan-Sep 2019 |
Jan-Sep 2018 |
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Net income reconciled to cash |
-4.3 | 2.9 | 5.0 | 6.1 | 1.7 | |||||||||||||||
Changes in operating net assets |
11.3 | -0.9 | -1.3 | 10.3 | 3.4 | |||||||||||||||
Cash flow from operating activities |
7.0 | 2.0 | 3.6 | 16.4 | 5.1 | |||||||||||||||
Cash flow from investing activities |
-3.1 | -1.7 | 1.0 | 1.2 | -1.9 | |||||||||||||||
Cash flow from financing activities |
0.2 | 0.3 | -4.6 | -7.0 | -3.5 | |||||||||||||||
Effect of exchange rate changes on cash |
1.6 | -1.6 | 0.0 | 2.2 | 0.6 | |||||||||||||||
Net change in cash and cash equivalents |
5.7 | -1.0 | 0.0 | 12.8 | 0.2 | |||||||||||||||
Free cash flow excluding M&A |
5.5 | 0.7 | 2.2 | 11.8 | 1.3 | |||||||||||||||
Free cash flow |
5.0 | 0.3 | 2.2 | 11.6 | 0.0 |
13 | Ericsson | Third quarter report 2019 | Cash flow |
Financial position
Sep 30 | Sep 30 | Jun 30 | ||||||||||
SEK b. |
2019 | 2018 | 2019 | |||||||||
+ Cash and cash equivalents |
51.2 | 36.1 | 45.5 | |||||||||
+ Interest-bearing securities, current |
5.9 | 6.6 | 6.4 | |||||||||
+ Interest-bearing securities, non-current |
19.2 | 23.0 | 17.1 | |||||||||
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Gross cash |
76.2 | 65.7 | 69.0 | |||||||||
- Borrowings, current |
1.6 | 2.5 | 2.2 | |||||||||
- Borrowings, non-current |
37.2 | 31.2 | 33.0 | |||||||||
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Net cash |
37.4 | 32.0 | 33.8 | |||||||||
Equity |
77.5 | 96.0 | 84.5 | |||||||||
Total assets |
288.5 | 264.8 | 280.4 | |||||||||
Capital turnover (times) |
1.4 | 1.3 | 1.3 | |||||||||
Return on capital employed (%) |
3.8 | % | 2.7 | % | 11.0 | % | ||||||
Equity ratio (%) |
26.9 | % | 36.2 | % | 30.1 | % | ||||||
Return on equity (%) |
-3.6 | % | 0.0 | % | 9.4 | % |
14 | Ericsson | Third quarter report 2019 | Financial position |
Parent Company
15 | Ericsson | Third quarter report 2019 | Parent Company |
Other information
16 | Ericsson | Third quarter report 2019 | Other information |
17 | Ericsson | Third quarter report 2019 | Other information |
Risk factors
18 | Ericsson | Third quarter report 2019 | Risk factors |
Auditors Review Report
19 | Ericsson | Third quarter report 2019 | Auditors Review Report |
Editors note
20 | Ericsson | Third quarter report 2019 | Editors note |
Forward-looking statements
21 | Ericsson | Third quarter report 2019 | Forward-looking statements |
Financial statements and other information
Contents
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28 | ||||
28 | ||||
29 | ||||
30 | ||||
30 | ||||
33 | ||||
33 | ||||
34 | ||||
35 | ||||
35 | ||||
Operating income (loss) and operating margin by segment by quarter |
36 | |||
37 | ||||
38 | ||||
39 | ||||
39 | ||||
40 | ||||
40 | ||||
41 | ||||
42 | ||||
42 | ||||
43 | ||||
43 | ||||
43 | ||||
Gross income and gross margin excluding restructuring charges by segment |
44 | |||
Operating income (loss) and operating margin excluding restructuring charges by segment |
45 | |||
46 | ||||
46 | ||||
47 | ||||
48 | ||||
48 | ||||
49 | ||||
49 | ||||
49 | ||||
50 | ||||
50 | ||||
50 | ||||
51 | ||||
51 |
22 | Ericsson | Third quarter report 2019 | Financial statements and other information |
Q3 | Jan-Sep | |||||||||||||||||||||||
SEK million |
2019 | 2018 | Change | 2019 | 2018 | Change | ||||||||||||||||||
Net sales |
57,127 | 53,810 | 6 | % | 160,843 | 147,029 | 9 | % | ||||||||||||||||
Cost of sales |
-35,587 | -34,180 | 4 | % | -100,453 | -95,208 | 6 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Gross income |
21,540 | 19,630 | 10 | % | 60,390 | 51,821 | 17 | % | ||||||||||||||||
Gross margin (%) |
37.7 | % | 36.5 | % | 37.5 | % | 35.2 | % | ||||||||||||||||
Research and development expenses |
-9,497 | -9,388 | 1 | % | -28,182 | -28,244 | 0 | % | ||||||||||||||||
Selling and administrative expenses |
-4,920 | -6,625 | -26 | % | -17,915 | -19,834 | -10 | % | ||||||||||||||||
Impairment losses on trade receivables |
200 | -409 | -149 | % | 910 | -806 | -213 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating expenses |
-14,217 | -16,422 | -13 | % | -45,187 | -48,884 | -8 | % | ||||||||||||||||
Other operating income and expenses ¹) |
-11,305 | 31 | | -10,466 | 126 | | ||||||||||||||||||
Shares in earnings of JV and associated companies |
-214 | 2 | | -298 | 31 | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income (loss) |
-4,196 | 3,241 | -229 | % | 4,439 | 3,094 | 43 | % | ||||||||||||||||
Financial income and expenses, net |
-685 | -639 | 7 | % | -1,731 | -1,990 | -13 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Income after financial items |
-4,881 | 2,602 | -288 | % | 2,708 | 1,104 | 145 | % | ||||||||||||||||
Taxes |
-2,013 | 146 | | -5,352 | -883 | | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income (loss) |
-6,894 | 2,748 | -351 | % | -2,644 | 221 | | |||||||||||||||||
Net income attributable to: |
||||||||||||||||||||||||
Stockholders of the Parent Company |
-6,229 | 2,745 | -2,207 | 23 | ||||||||||||||||||||
Non-controlling interests |
-665 | 3 | -437 | 198 | ||||||||||||||||||||
Other information |
||||||||||||||||||||||||
Average number of shares, basic (million) |
3,308 | 3,293 | 3,304 | 3,290 | ||||||||||||||||||||
Earnings (loss) per share, basic (SEK) ²) |
-1.89 | 0.84 | -0.67 | 0.01 | ||||||||||||||||||||
Earnings (loss) per share, diluted (SEK) ³) |
-1.89 | 0.83 | -0.67 | 0.01 |
1) | Includes a provision of SEK -11.5 billion in Q3 2019 related to the investigation by the SEC and the DOJ. |
2) | Based on net income (loss) attributable to stockholders of the Parent Company. |
3) | Potential ordinary shares are not considered when their conversion to ordinary shares would increase earnings per share. |
Statement of comprehensive income (loss)
Q3 | Jan-Sep | |||||||||||||||
SEK Million |
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net income (loss) |
-6,894 | 2,748 | -2,644 | 221 | ||||||||||||
Other comprehensive income (loss) |
||||||||||||||||
Items that will not be reclassified to profit or loss |
||||||||||||||||
Remeasurements of defined benefits pension plans incl. asset ceiling |
-2,716 | 1,223 | -8,166 | 497 | ||||||||||||
Revaluation of borrowings due to change in credit risk |
81 | -292 | -454 | -226 | ||||||||||||
Tax on items that will not be reclassified to profit or loss |
629 | -217 | 1,886 | -270 | ||||||||||||
Items that may be reclassified to profit or loss |
||||||||||||||||
Cash flow hedge reserve |
||||||||||||||||
Gains/losses arising during the period |
-374 | | -580 | | ||||||||||||
Reclassification adjustments for gains/losses included in profit or loss |
| | | | ||||||||||||
Adjustments for amounts transferred to initial carrying amount of hedged items |
| | | | ||||||||||||
Revaluation of other investments in shares and participations |
||||||||||||||||
Fair value remeasurement |
| | | | ||||||||||||
Changes in cumulative translation adjustments |
2,092 | -1,237 | 3,687 | 1,804 | ||||||||||||
Share of other comprehensive income on JV and associated companies |
68 | -5 | 114 | 15 | ||||||||||||
Tax on items that may be reclassified to profit or loss |
77 | | 119 | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total other comprehensive income (loss), net of tax |
-143 | -528 | -3,394 | 1,820 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total comprehensive income |
-7,037 | 2,220 | -6,038 | 2,041 | ||||||||||||
Total comprehensive income (loss) attributable to: |
||||||||||||||||
Stockholders of the Parent Company |
-6,409 | 2,223 | -5,656 | 1,807 | ||||||||||||
Non-controlling interest |
-628 | -3 | -382 | 234 |
23 | Ericsson | Third quarter report 2019 | Financial statements |
Sep 30 | Jun 30 | Dec 31 | ||||||||||
SEK million |
2019 | 2019 | 2018 | |||||||||
Assets |
||||||||||||
Non-current assets |
||||||||||||
Intangible assets |
||||||||||||
Capitalized development expenses |
4,024 | 3,971 | 4,237 | |||||||||
Goodwill |
32,565 | 30,964 | 30,035 | |||||||||
Intellectual property rights, brands and other intangible assets |
2,409 | 2,467 | 3,474 | |||||||||
Property, plant and equipment |
13,399 | 13,192 | 12,849 | |||||||||
Right-of-use assets |
8,617 | 8,227 | | |||||||||
Financial assets |
||||||||||||
Equity in JV and associated companies |
1,556 | 1,766 | 611 | |||||||||
Other investments in shares and participations |
1,406 | 1,380 | 1,515 | |||||||||
Customer finance, non-current |
2,495 | 2,428 | 1,180 | |||||||||
Interest-bearing securities, non-current |
19,157 | 17,091 | 23,982 | |||||||||
Other financial assets, non-current |
6,452 | 5,986 | 6,559 | |||||||||
Deferred tax assets |
30,818 | 29,169 | 23,152 | |||||||||
|
|
|
|
|
|
|||||||
122,898 | 116,641 | 107,594 | ||||||||||
Current assets |
||||||||||||
Inventories |
36,056 | 36,135 | 29,255 | |||||||||
Contract assets |
13,004 | 12,593 | 13,178 | |||||||||
Trade receivables |
41,228 | 44,956 | 51,172 | |||||||||
Customer finance, current |
1,334 | 1,109 | 1,704 | |||||||||
Other current receivables |
16,962 | 17,148 | 20,844 | |||||||||
Interest-bearing securities, current |
5,866 | 6,367 | 6,625 | |||||||||
Cash and cash equivalents |
51,183 | 45,498 | 38,389 | |||||||||
|
|
|
|
|
|
|||||||
165,633 | 163,806 | 161,167 | ||||||||||
|
|
|
|
|
|
|||||||
Total assets |
288,531 | 280,447 | 268,761 | |||||||||
Equity and liabilities |
||||||||||||
Equity |
||||||||||||
Stockholders equity |
78,200 | 84,488 | 86,978 | |||||||||
Non-controlling interest in equity of subsidiaries |
-725 | 45 | 792 | |||||||||
|
|
|
|
|
|
|||||||
77,475 | 84,533 | 87,770 | ||||||||||
Non-current liabilities |
||||||||||||
Post-employment benefits |
37,345 | 33,919 | 28,720 | |||||||||
Provisions, non-current |
2,308 | 2,646 | 5,471 | |||||||||
Deferred tax liabilities |
857 | 1,178 | 670 | |||||||||
Borrowings, non-current |
37,153 | 33,040 | 30,870 | |||||||||
Lease liabilities, non-current |
7,888 | 7,699 | | |||||||||
Other non-current liabilities |
2,163 | 2,160 | 4,346 | |||||||||
|
|
|
|
|
|
|||||||
87,714 | 80,642 | 70,077 | ||||||||||
Current liabilities |
||||||||||||
Provisions, current |
19,699 | 8,712 | 10,537 | |||||||||
Borrowings, current |
1,622 | 2,160 | 2,255 | |||||||||
Lease liabilities, current |
2,226 | 2,397 | | |||||||||
Contract liabilities |
34,499 | 37,264 | 29,348 | |||||||||
Trade payables |
30,672 | 31,388 | 29,883 | |||||||||
Other current liabilities |
34,624 | 33,351 | 38,891 | |||||||||
|
|
|
|
|
|
|||||||
123,342 | 115,272 | 110,914 | ||||||||||
|
|
|
|
|
|
|||||||
Total equity and liabilities |
288,531 | 280,447 | 268,761 | |||||||||
Assets pledged as collateral |
6,049 | 5,824 | 5,681 | |||||||||
Contingent liabilities |
1,640 | 1,511 | 1,638 |
24 | Ericsson | Third quarter report 2019 | Financial statements |
Consolidated statement of cash flows
Q3 | Jan-Sep | Jan-Dec | ||||||||||||||||||
SEK million |
2019 | 2018 | 2019 | 2018 | 2018 | |||||||||||||||
Operating activities |
||||||||||||||||||||
Net income (loss) |
-6,894 | 2,748 | -2,644 | 221 | -6,276 | |||||||||||||||
Adjustments to reconcile net income to cash |
||||||||||||||||||||
Taxes |
-411 | -2,101 | 703 | -5,487 | -1,897 | |||||||||||||||
Earnings/dividends in JV and associated companies |
278 | 28 | 373 | 13 | -23 | |||||||||||||||
Depreciation, amortization and impairment losses |
2,199 | 1,893 | 6,799 | 5,849 | 8,318 | |||||||||||||||
Other |
508 | 348 | 882 | 1,056 | 1,432 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income reconciled to cash |
-4,320 | 2,916 | 6,113 | 1,652 | 1,554 | |||||||||||||||
Changes in operating net assets |
||||||||||||||||||||
Inventories |
1,077 | -1,773 | -4,939 | -6,496 | -4,807 | |||||||||||||||
Customer finance, current and non-current |
-265 | 1,001 | -792 | 1,948 | 1,085 | |||||||||||||||
Trade receivables and contract assets |
6,528 | -3,503 | 14,211 | 5,474 | -2,047 | |||||||||||||||
Trade payables |
-2,913 | 953 | -1,060 | 1,607 | 2,436 | |||||||||||||||
Provisions and post-employment benefits |
10,719 | -265 | 6,780 | -634 | 6,696 | |||||||||||||||
Contract liabilities |
-3,988 | -220 | 2,834 | 304 | -808 | |||||||||||||||
Other operating assets and liabilities, net |
151 | 2,931 | -6,770 | 1,200 | 5,233 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
11,309 | -876 | 10,264 | 3,403 | 7,788 | ||||||||||||||||
Cash flow from operating activities |
6,989 | 2,040 | 16,377 | 5,055 | 9,342 | |||||||||||||||
Investing activities |
||||||||||||||||||||
Investments in property, plant and equipment |
-1,231 | -1,088 | -3,643 | -2,895 | -3,975 | |||||||||||||||
Sales of property, plant and equipment |
122 | 102 | 538 | 277 | 334 | |||||||||||||||
Acquisitions/divestments of subsidiaries and other operations, net |
-466 | -425 | -164 | -1,305 | -1,285 | |||||||||||||||
Product development |
-313 | -151 | -1,216 | -730 | -925 | |||||||||||||||
Other investing activities |
-56 | -190 | -257 | -427 | -523 | |||||||||||||||
Interest-bearing securities |
-1,114 | 30 | 5,973 | 3,152 | 2,242 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Cash flow from investing activities |
-3,058 | -1,722 | 1,231 | -1,928 | -4,132 | |||||||||||||||
Cash flow before financing activities |
3,931 | 318 | 17,608 | 3,127 | 5,210 | |||||||||||||||
Financing activities |
||||||||||||||||||||
Dividends paid |
-141 | -2 | -4,435 | -3,291 | -3,425 | |||||||||||||||
Lease liabilities |
-1,052 | | -2,279 | | | |||||||||||||||
Other financing activities |
1,396 | 254 | -294 | -223 | -652 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Cash flow from financing activities |
203 | 252 | -7,008 | -3,514 | -4,077 | |||||||||||||||
Effect of exchange rate changes on cash |
1,550 | -1,562 | 2,194 | 561 | 1,372 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net change in cash and cash equivalents |
5,684 | -992 | 12,794 | 174 | 2,505 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Cash and cash equivalents, beginning of period |
45,499 | 37,050 | 38,389 | 35,884 | 35,884 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Cash and cash equivalents, end of period |
51,183 | 36,058 | 51,183 | 36,058 | 38,389 |
25 | Ericsson | Third quarter report 2019 | Financial statements |
Consolidated statement of changes in equity
Jan-Sep | Jan-Dec | |||||||||||
SEK million |
2019 | 2018 | 2018 | |||||||||
Opening balance ¹) |
87,770 | 97,571 | 97,571 | |||||||||
Adjustment due to new accounting standards ²) |
-249 | -983 | -983 | |||||||||
|
|
|
|
|
|
|||||||
Adjusted opening balance |
87,521 | 96,588 | 96,588 | |||||||||
Total comprehensive income (loss) |
-6,038 | 2,041 | -6,176 | |||||||||
Sale/repurchase of own shares |
125 | 76 | 107 | |||||||||
Stock issue, net |
| | | |||||||||
Long-term variable compensation plans |
303 | 540 | 677 | |||||||||
Dividends paid |
-4,435 | -3,291 | -3,425 | |||||||||
Transactions with non-controlling interests |
-1 | -1 | -1 | |||||||||
|
|
|
|
|
|
|||||||
Closing balance |
77,475 | 95,953 | 87,770 |
1) | Opening balance of 2018 has been restated for IFRS 15. |
2) | Opening balance adjustment in 2019 due to IFRS 16, and in 2018 due to IFRS 9. |
Consolidated income statement isolated quarters
2019 | 2018 | |||||||||||||||||||||||||||
Isolated quarters, SEK million |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||
Net sales |
57,127 | 54,810 | 48,906 | 63,809 | 53,810 | 49,808 | 43,411 | |||||||||||||||||||||
Cost of sales |
-35,587 | -34,739 | -30,127 | -47,430 | -34,180 | -32,475 | -28,553 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Gross income |
21,540 | 20,071 | 18,779 | 16,379 | 19,630 | 17,333 | 14,858 | |||||||||||||||||||||
Gross margin (%) |
37.7 | % | 36.6 | % | 38.4 | % | 25.7 | % | 36.5 | % | 34.8 | % | 34.2 | % | ||||||||||||||
Research and development expenses |
-9,497 | -9,518 | -9,167 | -10,665 | -9,388 | -9,783 | -9,073 | |||||||||||||||||||||
Selling and administrative expenses |
-4,920 | -6,964 | -6,031 | -7,685 | -6,625 | -7,053 | -6,156 | |||||||||||||||||||||
Impairment losses on trade receivables |
200 | 151 | 559 | 386 | -409 | -369 | -28 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Operating expenses |
-14,217 | -16,331 | -14,639 | -17,964 | -16,422 | -17,205 | -15,257 | |||||||||||||||||||||
Other operating income and expenses ¹) |
-11,305 | 66 | 773 | -294 | 31 | 11 | 84 | |||||||||||||||||||||
Shares in earnings of JV and associated companies |
-214 | -67 | -17 | 27 | 2 | 26 | 3 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Operating income (loss) |
-4,196 | 3,739 | 4,896 | -1,852 | 3,241 | 165 | -312 | |||||||||||||||||||||
Financial income and expenses, net |
-685 | -441 | -605 | -715 | -639 | -810 | -541 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Income after financial items |
-4,881 | 3,298 | 4,291 | -2,567 | 2,602 | -645 | -853 | |||||||||||||||||||||
Taxes |
-2,013 | -1,451 | -1,888 | -3,930 | 146 | -1,157 | 128 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net income (loss) |
-6,894 | 1,847 | 2,403 | -6,497 | 2,748 | -1,802 | -725 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net income (loss) attributable to: |
||||||||||||||||||||||||||||
Stockholders of the Parent Company |
-6,229 | 1,705 | 2,317 | -6,553 | 2,745 | -1,885 | -837 | |||||||||||||||||||||
Non-controlling interests |
-665 | 142 | 86 | 56 | 3 | 83 | 112 | |||||||||||||||||||||
Other information |
||||||||||||||||||||||||||||
Average number of shares, basic (million) |
3,308 | 3,304 | 3,300 | 3,296 | 3,293 | 3,290 | 3,286 | |||||||||||||||||||||
Earnings (loss) per share, basic (SEK) ²) |
-1.89 | 0.52 | 0.70 | -1.99 | 0.84 | -0.58 | -0.25 | |||||||||||||||||||||
Earnings (loss) per share, diluted (SEK) ³) |
-1.89 | 0.51 | 0.70 | -1.99 | 0.83 | -0.58 | -0.25 |
1) | Includes a provision of SEK -11.5 billion in Q3 2019 related to the investigation by the SEC and the DOJ. |
2) | Based on net income (loss) attributable to stockholders of the Parent Company. |
3) | Potential ordinary shares are not considered when their conversion to ordinary shares would increase earnings per share. |
26 | Ericsson | Third quarter report 2019 | Financial statements |
Consolidated statement of cash flows isolated quarters
2019 | 2018 | |||||||||||||||||||||||||||
Isolated quarters, SEK million |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||
Operating activities |
||||||||||||||||||||||||||||
Net income (loss) |
-6,894 | 1,847 | 2,403 | -6,497 | 2,748 | -1,802 | -725 | |||||||||||||||||||||
Adjustments to reconcile net income to cash |
||||||||||||||||||||||||||||
Taxes |
-411 | 310 | 804 | 3,590 | -2,101 | -1,071 | -2,315 | |||||||||||||||||||||
Earnings/dividends in JV and associated companies |
278 | 71 | 24 | -36 | 28 | -19 | 4 | |||||||||||||||||||||
Depreciation, amortization and impairment losses |
2,199 | 2,274 | 2,326 | 2,469 | 1,893 | 2,065 | 1,891 | |||||||||||||||||||||
Other |
508 | 450 | -76 | 376 | 348 | 568 | 140 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net income reconciled to cash |
-4,320 | 4,952 | 5,481 | -98 | 2,916 | -259 | -1,005 | |||||||||||||||||||||
Changes in operating net assets |
||||||||||||||||||||||||||||
Inventories |
1,077 | -3,065 | -2,951 | 1,689 | -1,773 | -1,910 | -2,813 | |||||||||||||||||||||
Customer finance, current and non-current |
-265 | 384 | -911 | -863 | 1,001 | 547 | 400 | |||||||||||||||||||||
Trade receivables and contract assets |
6,528 | 3,338 | 4,345 | -7,521 | -3,503 | 1,661 | 7,316 | |||||||||||||||||||||
Trade payables |
-2,913 | 1,833 | 20 | 829 | 953 | 1,252 | -598 | |||||||||||||||||||||
Provisions and post-employment benefits |
10,719 | -480 | -3,459 | 7,330 | -265 | 478 | -847 | |||||||||||||||||||||
Contract liabilities |
-3,988 | -1,641 | 8,463 | -1,112 | -220 | -233 | 757 | |||||||||||||||||||||
Other operating assets and liabilities, net |
151 | -1,698 | -5,223 | 4,033 | 2,931 | -94 | -1,637 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
11,309 | -1,329 | 284 | 4,385 | -876 | 1,701 | 2,578 | ||||||||||||||||||||||
Cash flow from operating activities |
6,989 | 3,623 | 5,765 | 4,287 | 2,040 | 1,442 | 1,573 | |||||||||||||||||||||
Investing activities |
||||||||||||||||||||||||||||
Investments in property, plant and equipment |
-1,231 | -1,098 | -1,314 | -1,080 | -1,088 | -951 | -856 | |||||||||||||||||||||
Sales of property, plant and equipment |
122 | 184 | 232 | 57 | 102 | 52 | 123 | |||||||||||||||||||||
Acquisitions/divestments of subsidiaries and other operations, net |
-466 | 3 | 299 | 20 | -425 | -431 | -449 | |||||||||||||||||||||
Product development |
-313 | -446 | -457 | -195 | -151 | -325 | -254 | |||||||||||||||||||||
Other investing activities |
-56 | -36 | -165 | -96 | -190 | -398 | 161 | |||||||||||||||||||||
Interest-bearing securities |
-1,114 | 2,414 | 4,673 | -910 | 30 | 3,656 | -534 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Cash flow from investing activities |
-3,058 | 1,021 | 3,268 | -2,204 | -1,722 | 1,603 | -1,809 | |||||||||||||||||||||
Cash flow before financing activities |
3,931 | 4,644 | 9,033 | 2,083 | 318 | 3,045 | -236 | |||||||||||||||||||||
Financing activities |
||||||||||||||||||||||||||||
Dividends paid |
-141 | -3,308 | -986 | -134 | -2 | -3,289 | | |||||||||||||||||||||
Lease liabilities |
-1,052 | -623 | -604 | | | | | |||||||||||||||||||||
Other financing activities |
1,396 | -680 | -1,010 | -429 | 254 | -383 | -94 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Cash flow from financing activities |
203 | -4,611 | -2,600 | -563 | 252 | -3,672 | -94 | |||||||||||||||||||||
Effect of exchange rate changes on cash |
1,550 | 13 | 631 | 811 | -1,562 | 980 | 1,143 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net change in cash and cash equivalents |
5,684 | 46 | 7,064 | 2,331 | -992 | 353 | 813 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Cash and cash equivalents, beginning of period |
45,499 | 45,453 | 38,389 | 36,058 | 37,050 | 36,697 | 35,884 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Cash and cash equivalents, end of period |
51,183 | 45,499 | 45,453 | 38,389 | 36,058 | 37,050 | 36,697 |
27 | Ericsson | Third quarter report 2019 | Financial statements |
Parent Company income statement
Q3 | Jan-Sep | Jan-Dec | ||||||||||||||||||
SEK million |
2019 | 2018 | 2019 | 2018 | 2018 | |||||||||||||||
Net sales |
| | | | | |||||||||||||||
Cost of sales |
| | | | | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Gross income |
| | | | | |||||||||||||||
Operating expenses |
-275 | -879 | -1,032 | -1,385 | -1,686 | |||||||||||||||
Other operating income and expenses ¹) |
-10,925 | 399 | -9,957 | 1,153 | 2,111 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Operating income |
-11,200 | -480 | -10,989 | -232 | 425 | |||||||||||||||
Financial net |
1,030 | 2,015 | 1,626 | 3,487 | 5,340 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income after financial items |
-10,170 | 1,535 | -9,363 | 3,255 | 5,765 | |||||||||||||||
Transfers to (-) / from untaxed reserves |
| | | | -1,535 | |||||||||||||||
Taxes |
-189 | -101 | -264 | -256 | -36 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income (loss) |
-10,359 | 1,434 | -9,627 | 2,999 | 4,194 |
1) | Includes a provision of SEK -11.5 billion in Q3 2019 related to the investigation by the SEC and the DOJ. |
Parent Company statement of comprehensive income (loss)
Q3 | Jan-Sep | Jan-Dec | ||||||||||||||||||
SEK million |
2019 | 2018 | 2019 | 2018 | 2018 | |||||||||||||||
Net income (loss) |
-10,359 | 1,434 | -9,627 | 2,999 | 4,194 | |||||||||||||||
Revaluation of borrowings due to change in credit risk |
81 | 292 | -364 | 342 | 91 | |||||||||||||||
Tax on items that will not be reclassified to profit or loss |
-17 | -64 | 75 | -75 | -19 | |||||||||||||||
Available-for-sale financial assets |
||||||||||||||||||||
Gains/losses arising during the period |
| | | | | |||||||||||||||
Reclassification adjustments on gains/losses included in profit or loss |
| | | | | |||||||||||||||
Revaluation of other investments in shares and participations |
||||||||||||||||||||
Fair value remeasurement |
| | | | | |||||||||||||||
Tax on items that may be reclassified to profit or loss |
| | | | | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total other comprehensive income, net of tax |
64 | 228 | -289 | 267 | 72 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total comprehensive income (loss) |
-10,295 | 1,662 | -9,916 | 3,266 | 4,266 |
28 | Ericsson | Third quarter report 2019 | Financial statements |
SEK million |
Sep 30 2019 |
Dec 31 2018 |
||||||
Assets |
||||||||
Fixed assets |
||||||||
Intangible assets |
66 | 139 | ||||||
Tangible assets |
279 | 259 | ||||||
Financial assets ¹) 2) |
106,712 | 109,177 | ||||||
|
|
|
|
|||||
107,057 | 109,575 | |||||||
Current assets |
||||||||
Inventories |
| | ||||||
Receivables 2) |
27,078 | 38,760 | ||||||
Short-term investments |
5,213 | 6,268 | ||||||
Cash and cash equivalents |
34,990 | 27,850 | ||||||
|
|
|
|
|||||
67,281 | 72,878 | |||||||
|
|
|
|
|||||
Total assets |
174,338 | 182,453 | ||||||
Stockholders equity, provisions and liabilities |
||||||||
Equity |
||||||||
Restricted equity |
48,164 | 48,164 | ||||||
Non-restricted equity ²) |
27,612 | 40,752 | ||||||
|
|
|
|
|||||
75,776 | 88,916 | |||||||
Provisions |
11,499 | 86 | ||||||
Non-current liabilities ²) |
37,280 | 62,581 | ||||||
Current liabilities |
49,783 | 30,870 | ||||||
|
|
|
|
|||||
Total stockholders equity, provisions and liabilities |
174,338 | 182,453 | ||||||
¹) Of which interest-bearing securities, non-current |
19,157 | 23,982 |
2) | The following 2018 opening balances have been adjusted due to IFRS 9: financial assets increased by SEK 8 million, receivables decreased by SEK 4 million, non-restricted equity decreased by SEK -28 million, and non-current liabilities increased by SEK 31 million. |
29 | Ericsson | Third quarter report 2019 | Financial statements |
30 | Ericsson | Third quarter report 2019 | Additional information |
31 | Ericsson | Third quarter report 2019 | Additional information |
32 | Ericsson | Third quarter report 2019 | Additional information |
Net sales by segment by quarter
2019 | 2018 | |||||||||||||||||||||||||||
Isolated quarters, SEK million |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||
Networks |
39,261 | 37,819 | 33,481 | 41,641 | 35,934 | 32,393 | 28,602 | |||||||||||||||||||||
Of which Products |
27,500 | 26,698 | 23,765 | 29,803 | 25,336 | 22,319 | 19,473 | |||||||||||||||||||||
Of which Services |
11,761 | 11,121 | 9,716 | 11,838 | 10,598 | 10,074 | 9,129 | |||||||||||||||||||||
Digital Services |
9,881 | 8,991 | 7,817 | 13,007 | 8,987 | 8,833 | 7,262 | |||||||||||||||||||||
Of which Products |
5,594 | 4,611 | 3,937 | 7,462 | 4,582 | 4,467 | 3,947 | |||||||||||||||||||||
Of which Services |
4,287 | 4,380 | 3,880 | 5,545 | 4,405 | 4,366 | 3,315 | |||||||||||||||||||||
Managed Services |
6,359 | 6,323 | 5,856 | 6,881 | 6,465 | 6,528 | 5,896 | |||||||||||||||||||||
Emerging Business and Other |
1,626 | 1,677 | 1,752 | 2,280 | 2,424 | 2,054 | 1,651 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
57,127 | 54,810 | 48,906 | 63,809 | 53,810 | 49,808 | 43,411 | |||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||||||||||
Sequential change, percent |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||
Networks |
4 | % | 13 | % | -20 | % | 16 | % | 11 | % | 13 | % | -23 | % | ||||||||||||||
Of which Products |
3 | % | 12 | % | -20 | % | 18 | % | 14 | % | 15 | % | -23 | % | ||||||||||||||
Of which Services |
6 | % | 14 | % | -18 | % | 12 | % | 5 | % | 10 | % | -22 | % | ||||||||||||||
Digital Services |
10 | % | 15 | % | -40 | % | 45 | % | 2 | % | 22 | % | -39 | % | ||||||||||||||
Of which Products |
21 | % | 17 | % | -47 | % | 63 | % | 3 | % | 13 | % | -39 | % | ||||||||||||||
Of which Services |
-2 | % | 13 | % | -30 | % | 26 | % | 1 | % | 32 | % | -38 | % | ||||||||||||||
Managed Services |
1 | % | 8 | % | -15 | % | 6 | % | -1 | % | 11 | % | -15 | % | ||||||||||||||
Emerging Business and Other |
-3 | % | -4 | % | -23 | % | -6 | % | 18 | % | 24 | % | -21 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
4 | % | 12 | % | -23 | % | 19 | % | 8 | % | 15 | % | -25 | % | ||||||||||||||
2019 | 2018 | |||||||||||||||||||||||||||
Year over year change, percent |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||
Networks |
9 | % | 17 | % | 17 | % | 12 | % | 13 | % | 2 | % | -10 | % | ||||||||||||||
Of which Products |
9 | % | 20 | % | 22 | % | 17 | % | 17 | % | 5 | % | -11 | % | ||||||||||||||
Of which Services |
11 | % | 10 | % | 6 | % | 1 | % | 5 | % | -3 | % | -7 | % | ||||||||||||||
Digital Services |
10 | % | 2 | % | 8 | % | 10 | % | 1 | % | -11 | % | -10 | % | ||||||||||||||
Of which Products |
22 | % | 3 | % | 0 | % | 16 | % | -6 | % | -17 | % | -9 | % | ||||||||||||||
Of which Services |
-3 | % | 0 | % | 17 | % | 3 | % | 8 | % | -4 | % | -12 | % | ||||||||||||||
Managed Services |
-2 | % | -3 | % | -1 | % | 0 | % | -2 | % | -2 | % | -6 | % | ||||||||||||||
Emerging Business and Other |
-33 | % | -18 | % | 6 | % | 9 | % | 22 | % | 2 | % | -7 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
6 | % | 10 | % | 13 | % | 10 | % | 9 | % | -1 | % | -9 | % | ||||||||||||||
2019 | 2018 | |||||||||||||||||||||||||||
Year to date, SEK million |
Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||||||||
Networks |
110,561 | 71,300 | 33,481 | 138,570 | 96,929 | 60,995 | 28,602 | |||||||||||||||||||||
Of which Products |
77,963 | 50,463 | 23,765 | 96,931 | 67,128 | 41,792 | 19,473 | |||||||||||||||||||||
Of which Services |
32,598 | 20,837 | 9,716 | 41,639 | 29,801 | 19,203 | 9,129 | |||||||||||||||||||||
Digital Services |
26,689 | 16,808 | 7,817 | 38,089 | 25,082 | 16,095 | 7,262 | |||||||||||||||||||||
Of which Products |
14,142 | 8,548 | 3,937 | 20,458 | 12,996 | 8,414 | 3,947 | |||||||||||||||||||||
Of which Services |
12,547 | 8,260 | 3,880 | 17,631 | 12,086 | 7,681 | 3,315 | |||||||||||||||||||||
Managed Services |
18,538 | 12,179 | 5,856 | 25,770 | 18,889 | 12,424 | 5,896 | |||||||||||||||||||||
Emerging Business and Other |
5,055 | 3,429 | 1,752 | 8,409 | 6,129 | 3,705 | 1,651 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
160,843 | 103,716 | 48,906 | 210,838 | 147,029 | 93,219 | 43,411 | |||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||||||||||
Year over year change, percent |
Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||||||||
Networks |
14 | % | 17 | % | 17 | % | 5 | % | 2 | % | -4 | % | -10 | % | ||||||||||||||
Of which Products |
16 | % | 21 | % | 22 | % | 7 | % | 3 | % | -3 | % | -11 | % | ||||||||||||||
Of which Services |
9 | % | 9 | % | 6 | % | -1 | % | -2 | % | -5 | % | -7 | % | ||||||||||||||
Digital Services |
6 | % | 4 | % | 8 | % | -2 | % | -7 | % | -11 | % | -10 | % | ||||||||||||||
Of which Products |
9 | % | 2 | % | 0 | % | -3 | % | -11 | % | -13 | % | -9 | % | ||||||||||||||
Of which Services |
4 | % | 8 | % | 17 | % | -1 | % | -2 | % | -8 | % | -12 | % | ||||||||||||||
Managed Services |
-2 | % | -2 | % | -1 | % | -3 | % | -3 | % | -4 | % | -6 | % | ||||||||||||||
Emerging Business and Other |
-18 | % | -7 | % | 6 | % | 7 | % | 6 | % | -2 | % | -7 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
9 | % | 11 | % | 13 | % | 3 | % | 0 | % | -5 | % | -9 | % |
34 | Ericsson | Third quarter report 2019 | Additional information |
Sales growth adjusted for comparable units and currency
2019 | 2018 | |||||||||||||||||||||||||||
Isolated quarter, year over year change, percent |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||
Networks |
4 | % | 11 | % | 10 | % | 6 | % | 5 | % | 2 | % | -2 | % | ||||||||||||||
Digital Services |
5 | % | -3 | % | 0 | % | 5 | % | -6 | % | -12 | % | -3 | % | ||||||||||||||
Managed Services |
-5 | % | -6 | % | -5 | % | -5 | % | -8 | % | -3 | % | -4 | % | ||||||||||||||
Emerging Business and Other 1) |
-7 | % | 24 | % | 38 | % | 1 | % | 11 | % | 1 | % | -2 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total ¹) |
3 | % | 7 | % | 7 | % | 4 | % | 1 | % | -1 | % | -2 | % | ||||||||||||||
2019 | 2018 | |||||||||||||||||||||||||||
Year to date, year over year change, percent |
Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||||||||
Networks |
8 | % | 11 | % | 10 | % | 3 | % | 2 | % | 0 | % | -2 | % | ||||||||||||||
Digital Services |
1 | % | -2 | % | 0 | % | -4 | % | -7 | % | -8 | % | -3 | % | ||||||||||||||
Managed Services |
-5 | % | -6 | % | -5 | % | -5 | % | -5 | % | -3 | % | -4 | % | ||||||||||||||
Emerging Business and Other ¹) |
15 | % | 30 | % | 38 | % | 3 | % | 3 | % | -1 | % | -2 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total ¹) |
5 | % | 7 | % | 7 | % | 1 | % | -1 | % | -2 | % | -2 | % |
1) | Adjusted for MediaKind divestment. |
Gross income (loss) and gross margin by segment by quarter
2019 | 2018 | |||||||||||||||||||||||||||
Isolated quarters, SEK million |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||
Networks |
16,327 | 15,670 | 14,455 | 16,626 | 14,835 | 12,565 | 11,127 | |||||||||||||||||||||
Digital Services |
3,749 | 3,311 | 2,878 | -1,240 | 3,208 | 3,458 | 2,892 | |||||||||||||||||||||
Managed Services |
1,136 | 779 | 1,036 | 781 | 805 | 809 | 491 | |||||||||||||||||||||
Emerging Business and Other |
328 | 311 | 410 | 212 | 782 | 501 | 348 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
21,540 | 20,071 | 18,779 | 16,379 | 19,630 | 17,333 | 14,858 | |||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||||||||||
Isolated quarters, as percentage of net sales |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||
Networks |
41.6 | % | 41.4 | % | 43.2 | % | 39.9 | % | 41.3 | % | 38.8 | % | 38.9 | % | ||||||||||||||
Digital Services |
37.9 | % | 36.8 | % | 36.8 | % | -9.5 | % | 35.7 | % | 39.1 | % | 39.8 | % | ||||||||||||||
Managed Services |
17.9 | % | 12.3 | % | 17.7 | % | 11.4 | % | 12.5 | % | 12.4 | % | 8.3 | % | ||||||||||||||
Emerging Business and Other |
20.2 | % | 18.5 | % | 23.4 | % | 9.3 | % | 32.3 | % | 24.4 | % | 21.1 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
37.7 | % | 36.6 | % | 38.4 | % | 25.7 | % | 36.5 | % | 34.8 | % | 34.2 | % | ||||||||||||||
2019 | 2018 | |||||||||||||||||||||||||||
Year to date, SEK million |
Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||||||||
Networks |
46,452 | 30,125 | 14,455 | 55,153 | 38,527 | 23,692 | 11,127 | |||||||||||||||||||||
Digital Services |
9,938 | 6,189 | 2,878 | 8,318 | 9,558 | 6,350 | 2,892 | |||||||||||||||||||||
Managed Services |
2,951 | 1,815 | 1,036 | 2,886 | 2,105 | 1,300 | 491 | |||||||||||||||||||||
Emerging Business and Other |
1,049 | 721 | 410 | 1,843 | 1,631 | 849 | 348 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
60,390 | 38,850 | 18,779 | 68,200 | 51,821 | 32,191 | 14,858 | |||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||||||||||
Year to date, as percentage of net sales |
Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||||||||
Networks |
42.0 | % | 42.3 | % | 43.2 | % | 39.8 | % | 39.7 | % | 38.8 | % | 38.9 | % | ||||||||||||||
Digital Services |
37.2 | % | 36.8 | % | 36.8 | % | 21.8 | % | 38.1 | % | 39.5 | % | 39.8 | % | ||||||||||||||
Managed Services |
15.9 | % | 14.9 | % | 17.7 | % | 11.2 | % | 11.1 | % | 10.5 | % | 8.3 | % | ||||||||||||||
Emerging Business and Other |
20.8 | % | 21.0 | % | 23.4 | % | 21.9 | % | 26.6 | % | 22.9 | % | 21.1 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
37.5 | % | 37.5 | % | 38.4 | % | 32.3 | % | 35.2 | % | 34.5 | % | 34.2 | % |
35 | Ericsson | Third quarter report 2019 | Additional information |
Operating income (loss) and operating margin by segment by quarter
2019 | 2018 | |||||||||||||||||||||||||||
Isolated quarters, SEK million |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||
Networks |
7,216 | 5,680 | 5,472 | 6,850 | 5,656 | 3,544 | 3,371 | |||||||||||||||||||||
Digital Services |
-660 | -1,405 | -1,798 | -7,087 | -1,784 | -2,374 | -2,607 | |||||||||||||||||||||
Managed Services |
562 | 203 | 1,252 | 285 | 409 | 299 | 100 | |||||||||||||||||||||
Emerging Business and Other |
-11,314 | -739 | -30 | -1,900 | -1,040 | -1,304 | -1,176 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
-4,196 | 3,739 | 4,896 | -1,852 | 3,241 | 165 | -312 | |||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||||||||||
Isolated quarters, as percentage of net sales |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||
Networks |
18.4 | % | 15.0 | % | 16.3 | % | 16.5 | % | 15.7 | % | 10.9 | % | 11.8 | % | ||||||||||||||
Digital Services |
-6.7 | % | -15.6 | % | -23.0 | % | -54.5 | % | -19.9 | % | -26.9 | % | -35.9 | % | ||||||||||||||
Managed Services |
8.8 | % | 3.2 | % | 21.4 | % | 4.1 | % | 6.3 | % | 4.6 | % | 1.7 | % | ||||||||||||||
Emerging Business and Other |
-695.8 | % | -44.1 | % | -1.7 | % | -83.3 | % | -42.9 | % | -63.5 | % | -71.2 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
-7.3 | % | 6.8 | % | 10.0 | % | -2.9 | % | 6.0 | % | 0.3 | % | -0.7 | % | ||||||||||||||
2019 | 2018 | |||||||||||||||||||||||||||
Year to date, SEK million |
Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||||||||
Networks |
18,368 | 11,152 | 5,472 | 19,421 | 12,571 | 6,915 | 3,371 | |||||||||||||||||||||
Digital Services |
-3,863 | -3,203 | -1,798 | -13,852 | -6,765 | -4,981 | -2,607 | |||||||||||||||||||||
Managed Services |
2,017 | 1,455 | 1,252 | 1,093 | 808 | 399 | 100 | |||||||||||||||||||||
Emerging Business and Other |
-12,083 | -769 | -30 | -5,420 | -3,520 | -2,480 | -1,176 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
4,439 | 8,635 | 4,896 | 1,242 | 3,094 | -147 | -312 | |||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||||||||||
Year to date, as percentage of net sales |
Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||||||||
Networks |
16.6 | % | 15.6 | % | 16.3 | % | 14.0 | % | 13.0 | % | 11.3 | % | 11.8 | % | ||||||||||||||
Digital Services |
-14.5 | % | -19.1 | % | -23.0 | % | -36.4 | % | -27.0 | % | -30.9 | % | -35.9 | % | ||||||||||||||
Managed Services |
10.9 | % | 11.9 | % | 21.4 | % | 4.2 | % | 4.3 | % | 3.2 | % | 1.7 | % | ||||||||||||||
Emerging Business and Other |
-239.0 | % | -22.4 | % | -1.7 | % | -64.5 | % | -57.4 | % | -66.9 | % | -71.2 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
2.8 | % | 8.3 | % | 10.0 | % | 0.6 | % | 2.1 | % | -0.2 | % | -0.7 | % |
36 | Ericsson | Third quarter report 2019 | Additional information |
EBITA and EBITA margin by segment by quarter
2019 | 2018 | |||||||||||||||||||||||||||
Isolated quarters, SEK million |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||
Networks |
7,253 | 5,716 | 5,552 | 6,916 | 5,722 | 3,618 | 3,461 | |||||||||||||||||||||
Digital Services |
-521 | -1,268 | -1,638 | -6,911 | -1,608 | -2,204 | -2,443 | |||||||||||||||||||||
Managed Services |
563 | 205 | 1,253 | 288 | 411 | 303 | 105 | |||||||||||||||||||||
Emerging Business and Other |
-11,262 | -688 | 43 | -1,524 | -940 | -1,202 | -1,088 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
-3,967 | 3,965 | 5,210 | -1,231 | 3,585 | 515 | 35 | |||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||||||||||
Isolated quarters, as percentage of net sales |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||
Networks |
18.5 | % | 15.1 | % | 16.6 | % | 16.6 | % | 15.9 | % | 11.2 | % | 12.1 | % | ||||||||||||||
Digital Services |
-5.3 | % | -14.1 | % | -21.0 | % | -53.1 | % | -17.9 | % | -25.0 | % | -33.6 | % | ||||||||||||||
Managed Services |
8.9 | % | 3.2 | % | 21.4 | % | 4.2 | % | 6.4 | % | 4.6 | % | 1.8 | % | ||||||||||||||
Emerging Business and Other |
-692.6 | % | -41.0 | % | 2.5 | % | -66.8 | % | -38.8 | % | -58.5 | % | -65.9 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
-6.9 | % | 7.2 | % | 10.7 | % | -1.9 | % | 6.7 | % | 1.0 | % | 0.1 | % | ||||||||||||||
2019 | 2018 | |||||||||||||||||||||||||||
Year to date, SEK million |
Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||||||||
Networks |
18,521 | 11,268 | 5,552 | 19,717 | 12,801 | 7,079 | 3,461 | |||||||||||||||||||||
Digital Services |
-3,427 | -2,906 | -1,638 | -13,166 | -6,255 | -4,647 | -2,443 | |||||||||||||||||||||
Managed Services |
2,021 | 1,458 | 1,253 | 1,107 | 819 | 408 | 105 | |||||||||||||||||||||
Emerging Business and Other |
-11,907 | -645 | 43 | -4,754 | -3,230 | -2,290 | -1,088 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
5,208 | 9,175 | 5,210 | 2,904 | 4,135 | 550 | 35 | |||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||||||||||
Year to date, as percentage of net sales |
Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||||||||
Networks |
16.8 | % | 15.8 | % | 16.6 | % | 14.2 | % | 13.2 | % | 11.6 | % | 12.1 | % | ||||||||||||||
Digital Services |
-12.8 | % | -17.3 | % | -21.0 | % | -34.6 | % | -24.9 | % | -28.9 | % | -33.6 | % | ||||||||||||||
Managed Services |
10.9 | % | 12.0 | % | 21.4 | % | 4.3 | % | 4.3 | % | 3.3 | % | 1.8 | % | ||||||||||||||
Emerging Business and Other |
-235.5 | % | -18.8 | % | 2.5 | % | -56.5 | % | -52.7 | % | -61.8 | % | -65.9 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
3.2 | % | 8.8 | % | 10.7 | % | 1.4 | % | 2.8 | % | 0.6 | % | 0.1 | % |
37 | Ericsson | Third quarter report 2019 | Additional information |
Net sales by market area by quarter
2019 | 2018 ³) | |||||||||||||||||||||||||||
Isolated quarters, SEK million |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||
South East Asia, Oceania and India |
7,432 | 6,965 | 6,148 | 8,244 | 7,985 | 6,981 | 6,379 | |||||||||||||||||||||
North East Asia |
6,356 | 6,516 | 3,824 | 8,387 | 5,773 | 4,764 | 3,385 | |||||||||||||||||||||
North America |
18,985 | 17,699 | 16,171 | 17,999 | 14,933 | 14,337 | 11,317 | |||||||||||||||||||||
Europe and Latin America 1) 2) |
14,308 | 14,085 | 13,124 | 17,909 | 14,697 | 13,999 | 12,958 | |||||||||||||||||||||
Middle East and Africa |
6,046 | 5,641 | 5,412 | 6,828 | 5,841 | 5,801 | 5,868 | |||||||||||||||||||||
Other 1) 2) |
4,000 | 3,904 | 4,227 | 4,442 | 4,581 | 3,926 | 3,504 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
57,127 | 54,810 | 48,906 | 63,809 | 53,810 | 49,808 | 43,411 | |||||||||||||||||||||
1) Of which in Sweden |
13 | 149 | 192 | 375 | 429 | 596 | 915 | |||||||||||||||||||||
2) Of which in EU |
8,815 | 8,385 | 7,957 | 10,319 | 8,481 | 8,619 | 8,522 | |||||||||||||||||||||
2019 | 2018 ³) | |||||||||||||||||||||||||||
Sequential change, percent |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||
South East Asia, Oceania and India |
7 | % | 13 | % | -25 | % | 3 | % | 14 | % | 9 | % | -19 | % | ||||||||||||||
North East Asia |
-2 | % | 70 | % | -54 | % | 45 | % | 21 | % | 41 | % | -48 | % | ||||||||||||||
North America |
7 | % | 9 | % | -10 | % | 21 | % | 4 | % | 27 | % | -23 | % | ||||||||||||||
Europe and Latin America 1) 2) |
2 | % | 7 | % | -27 | % | 22 | % | 5 | % | 8 | % | -22 | % | ||||||||||||||
Middle East and Africa |
7 | % | 4 | % | -21 | % | 17 | % | 1 | % | -1 | % | -25 | % | ||||||||||||||
Other 1) 2) |
2 | % | -8 | % | -5 | % | -3 | % | 17 | % | 12 | % | -20 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
4 | % | 12 | % | -23 | % | 19 | % | 8 | % | 15 | % | -25 | % | ||||||||||||||
1) Of which in Sweden |
-91 | % | -22 | % | -49 | % | -13 | % | -28 | % | -35 | % | 5 | % | ||||||||||||||
2) Of which in EU |
5 | % | 5 | % | -23 | % | 22 | % | -2 | % | 1 | % | -21 | % | ||||||||||||||
2019 | 2018 ³) | |||||||||||||||||||||||||||
Year over year change, percent |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||
South East Asia, Oceania and India |
-7 | % | 0 | % | -4 | % | 5 | % | 2 | % | -3 | % | -24 | % | ||||||||||||||
North East Asia |
10 | % | 37 | % | 13 | % | 30 | % | 2 | % | -19 | % | -39 | % | ||||||||||||||
North America |
27 | % | 23 | % | 43 | % | 23 | % | 21 | % | 11 | % | -6 | % | ||||||||||||||
Europe and Latin America 1) 2) |
-3 | % | 1 | % | 1 | % | 7 | % | 11 | % | 1 | % | 8 | % | ||||||||||||||
Middle East and Africa |
4 | % | -3 | % | -8 | % | -13 | % | -9 | % | -5 | % | 6 | % | ||||||||||||||
Other 1) 2) |
-13 | % | -1 | % | 21 | % | 2 | % | 19 | % | -7 | % | -17 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
6 | % | 10 | % | 13 | % | 10 | % | 9 | % | -1 | % | -9 | % | ||||||||||||||
1) Of which in Sweden |
-97 | % | -75 | % | -79 | % | -57 | % | -35 | % | -24 | % | -10 | % | ||||||||||||||
2) Of which in EU |
4 | % | -3 | % | -7 | % | -5 | % | -2 | % | -1 | % | 2 | % | ||||||||||||||
2019 | 2018 ³) | |||||||||||||||||||||||||||
Year to date, SEK million |
Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||||||||
South East Asia, Oceania and India |
20,545 | 13,113 | 6,148 | 29,589 | 21,345 | 13,360 | 6,379 | |||||||||||||||||||||
North East Asia |
16,696 | 10,340 | 3,824 | 22,309 | 13,922 | 8,149 | 3,385 | |||||||||||||||||||||
North America |
52,855 | 33,870 | 16,171 | 58,586 | 40,587 | 25,654 | 11,317 | |||||||||||||||||||||
Europe and Latin America 1) 2) |
41,517 | 27,209 | 13,124 | 59,563 | 41,654 | 26,957 | 12,958 | |||||||||||||||||||||
Middle East and Africa |
17,099 | 11,053 | 5,412 | 24,338 | 17,510 | 11,669 | 5,868 | |||||||||||||||||||||
Other 1) 2) |
12,131 | 8,131 | 4,227 | 16,453 | 12,011 | 7,430 | 3,504 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
160,843 | 103,716 | 48,906 | 210,838 | 147,029 | 93,219 | 43,411 | |||||||||||||||||||||
1) Of which in Sweden |
354 | 341 | 192 | 2,315 | 1,940 | 1,511 | 915 | |||||||||||||||||||||
2) Of which in EU |
25,157 | 16,342 | 7,957 | 35,941 | 25,622 | 17,141 | 8,522 | |||||||||||||||||||||
2019 | 2018 ³) | |||||||||||||||||||||||||||
Year to date, year over year change, percent |
Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||||||||
South East Asia, Oceania and India |
-4 | % | -2 | % | -4 | % | -6 | % | -9 | % | -15 | % | -24 | % | ||||||||||||||
North East Asia |
20 | % | 27 | % | 13 | % | -5 | % | -19 | % | -29 | % | -39 | % | ||||||||||||||
North America |
30 | % | 32 | % | 43 | % | 13 | % | 9 | % | 3 | % | -6 | % | ||||||||||||||
Europe and Latin America 1) 2) |
0 | % | 1 | % | 1 | % | 7 | % | 6 | % | 4 | % | 8 | % | ||||||||||||||
Middle East and Africa |
-2 | % | -5 | % | -8 | % | -6 | % | -3 | % | 0 | % | 6 | % | ||||||||||||||
Other 1) 2) |
1 | % | 9 | % | 21 | % | -1 | % | -2 | % | -12 | % | -17 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
9 | % | 11 | % | 13 | % | 3 | % | 0 | % | -5 | % | -9 | % | ||||||||||||||
1) Of which in Sweden |
-82 | % | -77 | % | -79 | % | -31 | % | -21 | % | -16 | % | -10 | % | ||||||||||||||
2) Of which in EU |
-2 | % | -5 | % | -7 | % | -1 | % | 0 | % | 1 | % | 2 | % |
3) | 2018 has been restated to reflect the move of Morocco from market area Europe and Latin America to Middle East and Africa. Please refer to Changes applied in Q1 2019. |
38 | Ericsson | Third quarter report 2019 | Additional information |
Q3 | Jan-Sep | |||||||||||||||
Country, percentage of net sales |
2019 | 2018 | 2019 | 2018 | ||||||||||||
United States |
35 | % | 30 | % | 34 | % | 29 | % | ||||||||
China |
7 | % | 8 | % | 6 | % | 6 | % | ||||||||
India |
4 | % | 5 | % | 4 | % | 5 | % | ||||||||
South Korea |
4 | % | 2 | % | 4 | % | 2 | % | ||||||||
Australia |
3 | % | 4 | % | 3 | % | 4 | % |
Net sales by market area by segment
Q3 2019 | Jan-Sep 2019 | |||||||||||||||||||||||||||||||||||||||
SEK million |
Networks | Digital Services |
Managed Services |
Emerging Business and Other |
Total | Networks | Digital Services |
Managed Services |
Emerging Business and Other |
Total | ||||||||||||||||||||||||||||||
South East Asia, Oceania and India |
5,517 | 926 | 976 | 13 | 7,432 | 15,047 | 2,663 | 2,795 | 40 | 20,545 | ||||||||||||||||||||||||||||||
North East Asia |
4,821 | 1,292 | 222 | 21 | 6,356 | 12,997 | 2,917 | 691 | 91 | 16,696 | ||||||||||||||||||||||||||||||
North America |
15,077 | 2,666 | 1,216 | 26 | 18,985 | 42,590 | 6,700 | 3,485 | 80 | 52,855 | ||||||||||||||||||||||||||||||
Europe and Latin America |
8,230 | 2,967 | 3,002 | 109 | 14,308 | 23,921 | 8,500 | 8,803 | 293 | 41,517 | ||||||||||||||||||||||||||||||
Middle East and Africa |
3,497 | 1,596 | 944 | 9 | 6,046 | 9,706 | 4,617 | 2,764 | 12 | 17,099 | ||||||||||||||||||||||||||||||
Other |
2,119 | 434 | -1 | 1,448 | 4,000 | 6,300 | 1,292 | 0 | 4,539 | 12,131 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total |
39,261 | 9,881 | 6,359 | 1,626 | 57,127 | 110,561 | 26,689 | 18,538 | 5,055 | 160,843 | ||||||||||||||||||||||||||||||
Share of Total |
69 | % | 17 | % | 11 | % | 3 | % | 100 | % | 69 | % | 17 | % | 11 | % | 3 | % | 100 | % |
Q3 2019 | ||||||||||||||||||||
Sequential change, percent |
Networks | Digital Services |
Managed Services |
Emerging Business and Other |
Total | |||||||||||||||
South East Asia, Oceania and India |
10 | % | 1 | % | -6 | % | -13 | % | 7 | % | ||||||||||
North East Asia |
-10 | % | 40 | % | 9 | % | -30 | % | -2 | % | ||||||||||
North America |
6 | % | 20 | % | 1 | % | -19 | % | 7 | % | ||||||||||
Europe and Latin America |
1 | % | 1 | % | 3 | % | 20 | % | 2 | % | ||||||||||
Middle East and Africa |
13 | % | 1 | % | -1 | % | 800 | % | 7 | % | ||||||||||
Other |
6 | % | 7 | % | -200 | % | -4 | % | 2 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
4 | % | 10 | % | 1 | % | -3 | % | 4 | % |
Q3 2019 | Jan-Sep 2019 | |||||||||||||||||||||||||||||||||||||||
Year over year change, percent |
Networks | Digital Services |
Managed Services |
Emerging Business and Other |
Total | Networks | Digital Services |
Managed Services |
Emerging Business and Other |
Total | ||||||||||||||||||||||||||||||
South East Asia, Oceania and India |
-5 | % | -27 | % | 11 | % | 333 | % | -7 | % | -1 | % | -25 | % | 11 | % | 208 | % | -4 | % | ||||||||||||||||||||
North East Asia |
5 | % | 55 | % | -32 | % | -30 | % | 10 | % | 25 | % | 24 | % | -36 | % | 47 | % | 20 | % | ||||||||||||||||||||
North America |
28 | % | 27 | % | 17 | % | 13 | % | 27 | % | 31 | % | 20 | % | 42 | % | 11 | % | 30 | % | ||||||||||||||||||||
Europe and Latin America |
-5 | % | 5 | % | -5 | % | 49 | % | -3 | % | 1 | % | 7 | % | -10 | % | 33 | % | 0 | % | ||||||||||||||||||||
Middle East and Africa |
9 | % | 1 | % | -10 | % | | 4 | % | -2 | % | 1 | % | -8 | % | | -2 | % | ||||||||||||||||||||||
Other |
11 | % | 13 | % | | -37 | % | -13 | % | 21 | % | 23 | % | | -21 | % | 1 | % | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total |
9 | % | 10 | % | -2 | % | -33 | % | 6 | % | 14 | % | 6 | % | -2 | % | -18 | % | 9 | % |
39 | Ericsson | Third quarter report 2019 | Additional information |
IPR licensing revenues by segment by quarter
2019 | 2018 | |||||||||||||||||||||||||||
Isolated quarters, SEK million |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||
Networks |
1,972 | 1,845 | 2,066 | 1,759 | 1,755 | 1,486 | 1,522 | |||||||||||||||||||||
Digital Services |
433 | 404 | 454 | 387 | 385 | 326 | 334 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
2,405 | 2,249 | 2,520 | 2,146 | 2,140 | 1,812 | 1,856 | |||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||||||||||
Year to date, SEK million |
Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||||||||
Networks |
5,883 | 3,911 | 2,066 | 6,522 | 4,763 | 3,008 | 1,522 | |||||||||||||||||||||
Digital Services |
1,291 | 858 | 454 | 1,432 | 1,045 | 660 | 334 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
7,174 | 4,769 | 2,520 | 7,954 | 5,808 | 3,668 | 1,856 |
2019 | 2018 | |||||||||||||||||||||||||||
Isolated quarters, SEK million |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||
Opening balance |
11,358 | 12,033 | 16,008 | 8,695 | 9,534 | 9,030 | 9,879 | |||||||||||||||||||||
Additions |
12,774 | 1,423 | 1,401 | 8,930 | 1,491 | 1,974 | 1,315 | |||||||||||||||||||||
Utilization/Cash out |
-2,151 | -2,084 | -1,676 | -1,436 | -1,774 | -1,486 | -2,216 | |||||||||||||||||||||
Of which restructuring |
-711 | -378 | -557 | -656 | -1,236 | -832 | -1,424 | |||||||||||||||||||||
Reversal of excess amounts |
-128 | -88 | -125 | -290 | -127 | -191 | -117 | |||||||||||||||||||||
Reclassification, translation difference and other |
154 | 74 | -3,575 | 109 | -429 | 207 | 169 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Closing balance |
22,007 | 11,358 | 12,033 | 16,008 | 8,695 | 9,534 | 9,030 | |||||||||||||||||||||
Of which restructuring |
1,099 | 1,743 | 2,059 | 6,438 | 2,960 | 4,029 | 3,524 |
2019 | 2018 | |||||||||||||||||||||||||||
Year to date, SEK million |
Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||||||||
Opening balance |
16,008 | 16,008 | 16,008 | 9,879 | 9,879 | 9,879 | 9,879 | |||||||||||||||||||||
Additions |
15,598 | 2,824 | 1,401 | 13,710 | 4,780 | 3,289 | 1,315 | |||||||||||||||||||||
Utilization/Cash out |
-5,911 | -3,760 | -1,676 | -6,912 | -5,476 | -3,702 | -2,216 | |||||||||||||||||||||
Of which restructuring |
-1,646 | -935 | -557 | -4,148 | -3,492 | -2,256 | -1,424 | |||||||||||||||||||||
Reversal of excess amounts |
-341 | -213 | -125 | -725 | -435 | -308 | -117 | |||||||||||||||||||||
Reclassification, translation difference and other |
-3,347 | -3,501 | -3,575 | 56 | -53 | 376 | 169 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Closing balance |
22,007 | 11,358 | 12,033 | 16,008 | 8,695 | 9,534 | 9,030 | |||||||||||||||||||||
Of which restructuring |
1,099 | 1,743 | 2,059 | 6,438 | 2,960 | 4,029 | 3,524 |
40 | Ericsson | Third quarter report 2019 | Additional information |
Investments in assets subject to depreciation, amortization, impairment and write-downs
2019 | 2018 | |||||||||||||||||||||||||||
Isolated quarters, SEK million |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||
Additions |
||||||||||||||||||||||||||||
Property, plant and equipment |
1,231 | 1,098 | 1,314 | 1,080 | 1,088 | 951 | 856 | |||||||||||||||||||||
Capitalized development expenses |
313 | 446 | 457 | 195 | 151 | 325 | 254 | |||||||||||||||||||||
IPR, brands and other intangible assets |
2 | | 1 | 27 | | 1 | | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
1,546 | 1,544 | 1,772 | 1,302 | 1,239 | 1,277 | 1,110 | |||||||||||||||||||||
Depreciation, amortization and impairment losses |
||||||||||||||||||||||||||||
Property, plant and equipment |
1,048 | 919 | 880 | 965 | 870 | 1,080 | 928 | |||||||||||||||||||||
Capitalized development expenses |
330 | 449 | 520 | 884 | 678 | 635 | 616 | |||||||||||||||||||||
Goodwill, IPR, brands and other intangible assets |
229 | 226 | 314 | 620 | 345 | 350 | 347 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
1,607 | 1,594 | 1,714 | 2,469 | 1,893 | 2,065 | 1,891 | |||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||||||||||
Year to date, SEK million |
Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||||||||
Additions |
||||||||||||||||||||||||||||
Property, plant and equipment |
3,643 | 2,412 | 1,314 | 3,975 | 2,895 | 1,807 | 856 | |||||||||||||||||||||
Capitalized development expenses |
1,216 | 903 | 457 | 925 | 730 | 579 | 254 | |||||||||||||||||||||
IPR, brands and other intangible assets |
3 | 1 | 1 | 28 | 1 | 1 | | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
4,862 | 3,316 | 1,772 | 4,928 | 3,626 | 2,387 | 1,110 | |||||||||||||||||||||
Depreciation, amortization and impairment losses |
||||||||||||||||||||||||||||
Property, plant and equipment |
2,847 | 1,799 | 880 | 3,843 | 2,878 | 2,008 | 928 | |||||||||||||||||||||
Capitalized development expenses |
1,299 | 969 | 520 | 2,813 | 1,929 | 1,251 | 616 | |||||||||||||||||||||
Goodwill, IPR, brands and other intangible assets |
769 | 540 | 314 | 1,662 | 1,042 | 697 | 347 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
4,915 | 3,308 | 1,714 | 8,318 | 5,849 | 3,956 | 1,891 |
41 | Ericsson | Third quarter report 2019 | Additional information |
Q3 | Jan-Sep | Jan-Dec | ||||||||||||||||||
SEK million |
2019 | 2018 | 2019 | 2018 | 2018 | |||||||||||||||
Number of shares and earnings per share |
||||||||||||||||||||
Number of shares, end of period (million) |
3,334 | 3,334 | 3,334 | 3,334 | 3,334 | |||||||||||||||
Of which class A-shares (million) |
262 | 262 | 262 | 262 | 262 | |||||||||||||||
Of which class B-shares (million) |
3,072 | 3,072 | 3,072 | 3,072 | 3,072 | |||||||||||||||
Number of treasury shares, end of period (million) |
25 | 40 | 25 | 40 | 37 | |||||||||||||||
Number of shares outstanding, basic, end of period (million) |
3,309 | 3,294 | 3,309 | 3,294 | 3,297 | |||||||||||||||
Numbers of shares outstanding, diluted, end of period (million) |
3,327 | 3,323 | 3,327 | 3,323 | 3,323 | |||||||||||||||
Average number of treasury shares (million) |
26 | 41 | 30 | 44 | 43 | |||||||||||||||
Average number of shares outstanding, basic (million) |
3,308 | 3,293 | 3,304 | 3,290 | 3,291 | |||||||||||||||
Average number of shares outstanding, diluted (million) ¹) |
3,326 | 3,322 | 3,322 | 3,319 | 3,318 | |||||||||||||||
Earnings (loss) per share, basic (SEK) ²) |
-1.89 | 0.84 | -0.67 | 0.01 | -1.98 | |||||||||||||||
Earnings (loss) per share, diluted (SEK) ¹) |
-1.89 | 0.83 | -0.67 | 0.01 | -1.98 | |||||||||||||||
Earnings (loss) per share (Non-IFRS), diluted (SEK) ³) |
-1.80 | 1.03 | -0.40 | 1.04 | 0.27 | |||||||||||||||
Ratios |
||||||||||||||||||||
Days sales outstanding |
| | 85 | 94 | 91 | |||||||||||||||
Inventory turnover days |
93 | 81 | 89 | 81 | 70 | |||||||||||||||
Payable days |
80 | 77 | 83 | 79 | 72 | |||||||||||||||
Alternative Performance Measures (APMs) |
||||||||||||||||||||
Equity ratio (%) |
| | 26.9 | % | 36.2 | % | 32.7 | % | ||||||||||||
Return on equity (%) |
-30.6 | % | 11.7 | % | -3.6 | % | 0.0 | % | -7.1 | % | ||||||||||
Return on capital employed (%) |
-10.3 | % | 8.4 | % | 3.8 | % | 2.7 | % | 0.8 | % | ||||||||||
Capital turnover (times) |
1.4 | 1.4 | 1.4 | 1.3 | 1.4 | |||||||||||||||
Free cash flow |
5,045 | 288 | 11,635 | -25 | 2,968 | |||||||||||||||
Cash conversion (%) |
-161.8 | % | 70.0 | % | 267.9 | % | 306.0 | % | 601.2 | % | ||||||||||
Exchange rates used in the consolidation |
||||||||||||||||||||
SEK/EUR - closing rate |
| | 10.71 | 10.30 | 10.25 | |||||||||||||||
SEK/USD - closing rate |
| | 9.81 | 8.90 | 8.94 | |||||||||||||||
Other |
||||||||||||||||||||
Market area inventory, end of period |
| | 21,989 | 19,513 | 16,505 | |||||||||||||||
Export sales from Sweden |
30,790 | 25,338 | 81,632 | 70,995 | 109,969 |
1) | Potential ordinary shares are not considered when their conversion to ordinary shares would increase earnings per share. |
2) | Based on net income (loss) attributable to stockholders of the Parent Company. |
3) | Excluding amortizations and write-downs of acquired intangibles and restructuring charges. |
2019 | 2018 2) | |||||||||||||||||||||||||||
End of period |
Sep 30 | Jun 30 | Mar 31 | Dec 31 | Sep 30 | Jun 30 | Mar 31 | |||||||||||||||||||||
South East Asia, Oceania and India |
24,322 | 23,942 | 24,051 | 23,959 | 23,607 | 23,516 | 23,623 | |||||||||||||||||||||
North East Asia |
13,608 | 13,334 | 13,169 | 12,788 | 12,495 | 12,303 | 12,321 | |||||||||||||||||||||
North America |
9,487 | 9,342 | 9,246 | 9,727 | 9,459 | 9,510 | 9,798 | |||||||||||||||||||||
Europe and Latin America ¹) |
44,150 | 43,846 | 43,833 | 44,522 | 44,594 | 45,643 | 47,437 | |||||||||||||||||||||
Middle East and Africa |
4,320 | 4,292 | 4,281 | 4,363 | 4,344 | 4,288 | 4,402 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
95,887 | 94,756 | 94,580 | 95,359 | 94,499 | 95,260 | 97,581 | |||||||||||||||||||||
1) Of which Sweden |
12,679 | 12,549 | 12,455 | 12,502 | 12,679 | 13,431 | 13,763 |
2) | 2018 has been restated to reflect the move of Morocco from market area Europe and Latin America to Middle East and Africa. Please refer to Changes applied in Q1 2019. |
42 | Ericsson | Third quarter report 2019 | Additional information |
Items excluding restructuring charges
Restructuring charges by function
2019 | 2018 | |||||||||||||||||||||||||||
Isolated quarters, SEK million |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||
Cost of sales |
-28 | -26 | -65 | -4,054 | -204 | -937 | -743 | |||||||||||||||||||||
Research and development expenses |
-98 | -49 | -118 | -251 | -214 | -502 | -326 | |||||||||||||||||||||
Selling and administrative expenses |
-21 | -43 | -23 | -106 | -134 | -441 | -103 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
-147 | -118 | -206 | -4,411 | -552 | -1,880 | -1,172 | |||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||||||||||
Year to date, SEK million |
Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||||||||
Cost of sales |
-119 | -91 | -65 | -5,938 | -1,884 | -1,680 | -743 | |||||||||||||||||||||
Research and development expenses |
-265 | -167 | -118 | -1,293 | -1,042 | -828 | -326 | |||||||||||||||||||||
Selling and administrative expenses |
-87 | -66 | -23 | -784 | -678 | -544 | -103 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
-471 | -324 | -206 | -8,015 | -3,604 | -3,052 | -1,172 |
Restructuring charges by segment
2019 | 2018 | |||||||||||||||||||||||||||
Isolated quarters, SEK million |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||
Networks |
-5 | -5 | -10 | -425 | -128 | -749 | -479 | |||||||||||||||||||||
of which cost of sales |
12 | 9 | -3 | -439 | -63 | -469 | -415 | |||||||||||||||||||||
of which operating expenses |
-17 | -14 | -7 | 14 | -65 | -280 | -64 | |||||||||||||||||||||
Digital Services |
-128 | -93 | -187 | -3,545 | -358 | -882 | -581 | |||||||||||||||||||||
of which cost of sales |
-32 | -27 | -60 | -3,369 | -111 | -303 | -226 | |||||||||||||||||||||
of which operating expenses |
-96 | -66 | -127 | -176 | -247 | -579 | -355 | |||||||||||||||||||||
Managed Services |
-2 | 1 | -2 | -70 | -32 | -123 | -51 | |||||||||||||||||||||
of which cost of sales |
-2 | 3 | -1 | -69 | -28 | -103 | -48 | |||||||||||||||||||||
of which operating expenses |
0 | -2 | -1 | -1 | -4 | -20 | -3 | |||||||||||||||||||||
Emerging Business and Other |
-12 | -21 | -7 | -371 | -34 | -126 | -61 | |||||||||||||||||||||
of which cost of sales |
-6 | -11 | -1 | -177 | -2 | -62 | -54 | |||||||||||||||||||||
of which operating expenses |
-6 | -10 | -6 | -194 | -32 | -64 | -7 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
-147 | -118 | -206 | -4,411 | -552 | -1,880 | -1,172 | |||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||||||||||
Year to date, SEK million |
Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||||||||
Networks |
-20 | -15 | -10 | -1,781 | -1,356 | -1,228 | -479 | |||||||||||||||||||||
of which cost of sales |
18 | 6 | -3 | -1,386 | -947 | -884 | -415 | |||||||||||||||||||||
of which operating expenses |
-38 | -21 | -7 | -395 | -409 | -344 | -64 | |||||||||||||||||||||
Digital Services |
-408 | -280 | -187 | -5,366 | -1,821 | -1,463 | -581 | |||||||||||||||||||||
of which cost of sales |
-119 | -87 | -60 | -4,009 | -640 | -529 | -226 | |||||||||||||||||||||
of which operating expenses |
-289 | -193 | -127 | -1,357 | -1,181 | -934 | -355 | |||||||||||||||||||||
Managed Services |
-3 | -1 | -2 | -276 | -206 | -174 | -51 | |||||||||||||||||||||
of which cost of sales |
0 | 2 | -1 | -248 | -179 | -151 | -48 | |||||||||||||||||||||
of which operating expenses |
-3 | -3 | -1 | -28 | -27 | -23 | -3 | |||||||||||||||||||||
Emerging Business and Other |
-40 | -28 | -7 | -592 | -221 | -187 | -61 | |||||||||||||||||||||
of which cost of sales |
-18 | -12 | -1 | -295 | -118 | -116 | -54 | |||||||||||||||||||||
of which operating expenses |
-22 | -16 | -6 | -297 | -103 | -71 | -7 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
-471 | -324 | -206 | -8,015 | -3,604 | -3,052 | -1,172 |
43 | Ericsson | Third quarter report 2019 | Items excluding restructuring charges |
Gross income and gross margin excluding restructuring charges by segment
2019 | 2018 | |||||||||||||||||||||||||||
Isolated quarters, SEK million |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||
Networks |
16,315 | 15,661 | 14,458 | 17,065 | 14,898 | 13,034 | 11,542 | |||||||||||||||||||||
Digital Services |
3,781 | 3,338 | 2,938 | 2,129 | 3,319 | 3,761 | 3,118 | |||||||||||||||||||||
Managed Services |
1,138 | 776 | 1,037 | 850 | 833 | 912 | 539 | |||||||||||||||||||||
Emerging Business and Other |
334 | 322 | 411 | 389 | 784 | 563 | 402 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
21,568 | 20,097 | 18,844 | 20,433 | 19,834 | 18,270 | 15,601 | |||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||||||||||
Isolated quarters, as percentage of net sales |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||
Networks |
41.6 | % | 41.4 | % | 43.2 | % | 41.0 | % | 41.5 | % | 40.2 | % | 40.4 | % | ||||||||||||||
Digital Services |
38.3 | % | 37.1 | % | 37.6 | % | 16.4 | % | 36.9 | % | 42.6 | % | 42.9 | % | ||||||||||||||
Managed Services |
17.9 | % | 12.3 | % | 17.7 | % | 12.4 | % | 12.9 | % | 14.0 | % | 9.1 | % | ||||||||||||||
Emerging Business and Other |
20.5 | % | 19.2 | % | 23.5 | % | 17.1 | % | 32.3 | % | 27.4 | % | 24.3 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
37.8 | % | 36.7 | % | 38.5 | % | 32.0 | % | 36.9 | % | 36.7 | % | 35.9 | % | ||||||||||||||
2019 | 2018 | |||||||||||||||||||||||||||
Year to date, SEK million |
Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||||||||
Networks |
46,434 | 30,119 | 14,458 | 56,539 | 39,474 | 24,576 | 11,542 | |||||||||||||||||||||
Digital Services |
10,057 | 6,276 | 2,938 | 12,327 | 10,198 | 6,879 | 3,118 | |||||||||||||||||||||
Managed Services |
2,951 | 1,813 | 1,037 | 3,134 | 2,284 | 1,451 | 539 | |||||||||||||||||||||
Emerging Business and Other |
1,067 | 733 | 411 | 2,138 | 1,749 | 965 | 402 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
60,509 | 38,941 | 18,844 | 74,138 | 53,705 | 33,871 | 15,601 | |||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||||||||||
Year to date, as percentage of net sales |
Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||||||||
Networks |
42.0 | % | 42.2 | % | 43.2 | % | 40.8 | % | 40.7 | % | 40.3 | % | 40.4 | % | ||||||||||||||
Digital Services |
37.7 | % | 37.3 | % | 37.6 | % | 32.4 | % | 40.7 | % | 42.7 | % | 42.9 | % | ||||||||||||||
Managed Services |
15.9 | % | 14.9 | % | 17.7 | % | 12.2 | % | 12.1 | % | 11.7 | % | 9.1 | % | ||||||||||||||
Emerging Business and Other |
21.1 | % | 21.4 | % | 23.5 | % | 25.4 | % | 28.5 | % | 26.0 | % | 24.3 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
37.6 | % | 37.5 | % | 38.5 | % | 35.2 | % | 36.5 | % | 36.3 | % | 35.9 | % |
44 | Ericsson | Third quarter report 2019 | Items excluding restructuring charges |
Operating income (loss) and operating margin excluding restructuring charges by segment
2019 | 2018 | |||||||||||||||||||||||||||
Isolated quarters, SEK million |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||
Networks |
7,221 | 5,685 | 5,482 | 7,275 | 5,784 | 4,293 | 3,850 | |||||||||||||||||||||
Digital Services |
-532 | -1,312 | -1,611 | -3,542 | -1,426 | -1,492 | -2,026 | |||||||||||||||||||||
Managed Services |
564 | 202 | 1,254 | 355 | 441 | 422 | 151 | |||||||||||||||||||||
Emerging Business and Other |
-11,302 | -718 | -23 | -1,529 | -1,006 | -1,178 | -1,115 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
-4,049 | 3,857 | 5,102 | 2,559 | 3,793 | 2,045 | 860 | |||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||||||||||
Isolated quarters, as percentage of net sales |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||
Networks |
18.4 | % | 15.0 | % | 16.4 | % | 17.5 | % | 16.1 | % | 13.3 | % | 13.5 | % | ||||||||||||||
Digital Services |
-5.4 | % | -14.6 | % | -20.6 | % | -27.2 | % | -15.9 | % | -16.9 | % | -27.9 | % | ||||||||||||||
Managed Services |
8.9 | % | 3.2 | % | 21.4 | % | 5.2 | % | 6.8 | % | 6.5 | % | 2.6 | % | ||||||||||||||
Emerging Business and Other |
-695.1 | % | -42.8 | % | -1.3 | % | -67.1 | % | -41.5 | % | -57.4 | % | -67.5 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
-7.1 | % | 7.0 | % | 10.4 | % | 4.0 | % | 7.0 | % | 4.1 | % | 2.0 | % | ||||||||||||||
2019 | 2018 | |||||||||||||||||||||||||||
Year to date, SEK million |
Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||||||||
Networks |
18,388 | 11,167 | 5,482 | 21,202 | 13,927 | 8,143 | 3,850 | |||||||||||||||||||||
Digital Services |
-3,455 | -2,923 | -1,611 | -8,486 | -4,944 | -3,518 | -2,026 | |||||||||||||||||||||
Managed Services |
2,020 | 1,456 | 1,254 | 1,369 | 1,014 | 573 | 151 | |||||||||||||||||||||
Emerging Business and Other |
-12,043 | -741 | -23 | -4,828 | -3,299 | -2,293 | -1,115 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
4,910 | 8,959 | 5,102 | 9,257 | 6,698 | 2,905 | 860 | |||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||||||||||
Year to date, as percentage of net sales |
Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||||||||
Networks |
16.6 | % | 15.7 | % | 16.4 | % | 15.3 | % | 14.4 | % | 13.4 | % | 13.5 | % | ||||||||||||||
Digital Services |
-12.9 | % | -17.4 | % | -20.6 | % | -22.3 | % | -19.7 | % | -21.9 | % | -27.9 | % | ||||||||||||||
Managed Services |
10.9 | % | 12.0 | % | 21.4 | % | 5.3 | % | 5.4 | % | 4.6 | % | 2.6 | % | ||||||||||||||
Emerging Business and Other |
-238.2 | % | -21.6 | % | -1.3 | % | -57.4 | % | -53.8 | % | -61.9 | % | -67.5 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
3.1 | % | 8.6 | % | 10.4 | % | 4.4 | % | 4.6 | % | 3.1 | % | 2.0 | % |
45 | Ericsson | Third quarter report 2019 | Items excluding restructuring charges |
Alternative performance measures
Sales growth adjusted for comparable units and currency
Sales growth adjusted for the impact of acquisitions and divestments as well as the effects of foreign currency fluctuations.
2019 | 2018 | |||||||||||||||||||||||||||
Isolated quarters, year over year change |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||
Reported net sales |
57,127 | 54,810 | 48,906 | 63,809 | 53,810 | 49,808 | 43,411 | |||||||||||||||||||||
Acquired business |
| | | | | | | |||||||||||||||||||||
Net FX impact |
-2,457 | -2,538 | -2,932 | -3,549 | -3,748 | -263 | 3,328 | |||||||||||||||||||||
Comparable net sales, excluding FX impact |
54,670 | 52,272 | 45,974 | 60,260 | 50,062 | 49,545 | 46,739 | |||||||||||||||||||||
Comparable quarter net sales adjusted for divested business ¹) |
53,077 | 49,055 | 42,961 | | | | | |||||||||||||||||||||
Sales growth adjusted for comparable units and currency (%) |
3 | % | 7 | % | 7 | % | 4 | % | 1 | % | -1 | % | -2 | % | ||||||||||||||
2019 | 2018 | |||||||||||||||||||||||||||
Year to date, year over year change |
Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||||||||
Reported net sales |
160,843 | 103,716 | 48,906 | 210,838 | 147,029 | 93,219 | 43,411 | |||||||||||||||||||||
Acquired business |
| | | | | | | |||||||||||||||||||||
Net FX impact |
-7,927 | -5,470 | -2,932 | -4,232 | -683 | 3,065 | 3,328 | |||||||||||||||||||||
Comparable net sales, excluding FX impact |
152,916 | 98,246 | 45,974 | 206,606 | 146,346 | 96,284 | 46,739 | |||||||||||||||||||||
Comparable year to date net sales adjusted for divested business ¹) |
145,093 | 92,016 | 42,961 | | | | | |||||||||||||||||||||
Sales growth adjusted for comparable units and currency (%) |
5 | % | 7 | % | 7 | % | 1 | % | -1 | % | -2 | % | -2 | % |
1) | Adjusted for MediaKind divestment. |
46 | Ericsson | Third quarter report 2019 | Alternative performance measures |
Items excluding restructuring charges
Gross income, operating expenses, and operating income (loss) are presented excluding restructuring charges and, for certain measures, as a percentage of net sales.
2019 | 2018 | |||||||||||||||||||||||||||
Isolated quarters, SEK million |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||
Gross income |
21,540 | 20,071 | 18,779 | 16,379 | 19,630 | 17,333 | 14,858 | |||||||||||||||||||||
Net sales |
57,127 | 54,810 | 48,906 | 63,809 | 53,810 | 49,808 | 43,411 | |||||||||||||||||||||
Gross margin (%) |
37.7 | % | 36.6 | % | 38.4 | % | 25.7 | % | 36.5 | % | 34.8 | % | 34.2 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Gross income |
21,540 | 20,071 | 18,779 | 16,379 | 19,630 | 17,333 | 14,858 | |||||||||||||||||||||
Restructuring charges included in cost of sales |
28 | 26 | 65 | 4,054 | 204 | 937 | 743 | |||||||||||||||||||||
Gross income excluding restructuring charges |
21,568 | 20,097 | 18,844 | 20,433 | 19,834 | 18,270 | 15,601 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net sales |
57,127 | 54,810 | 48,906 | 63,809 | 53,810 | 49,808 | 43,411 | |||||||||||||||||||||
Gross margin excluding restructuring charges (%) |
37.8 | % | 36.7 | % | 38.5 | % | 32.0 | % | 36.9 | % | 36.7 | % | 35.9 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Operating expenses |
-14,217 | -16,331 | -14,639 | -17,964 | -16,422 | -17,205 | -15,257 | |||||||||||||||||||||
Restructuring charges included in R&D expenses |
98 | 49 | 118 | 251 | 214 | 502 | 326 | |||||||||||||||||||||
Restructuring charges included in selling and administrative expenses |
21 | 43 | 23 | 106 | 134 | 441 | 103 | |||||||||||||||||||||
Operating expenses excluding restructuring charges |
-14,098 | -16,239 | -14,498 | -17,607 | -16,074 | -16,262 | -14,828 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Operating income (loss) |
-4,196 | 3,739 | 4,896 | -1,852 | 3,241 | 165 | -312 | |||||||||||||||||||||
Net sales |
57,127 | 54,810 | 48,906 | 63,809 | 53,810 | 49,808 | 43,411 | |||||||||||||||||||||
Operating margin (%) |
-7.3 | % | 6.8 | % | 10.0 | % | -2.9 | % | 6.0 | % | 0.3 | % | -0.7 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Operating income (loss) |
-4,196 | 3,739 | 4,896 | -1,852 | 3,241 | 165 | -312 | |||||||||||||||||||||
Total restructuring charges |
147 | 118 | 206 | 4,411 | 552 | 1,880 | 1,172 | |||||||||||||||||||||
Operating income (loss) excluding restructuring charges |
-4,049 | 3,857 | 5,102 | 2,559 | 3,793 | 2,045 | 860 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net sales |
57,127 | 54,810 | 48,906 | 63,809 | 53,810 | 49,808 | 43,411 | |||||||||||||||||||||
Operating margin excluding restructuring charges (%) |
-7.1 | % | 7.0 | % | 10.4 | % | 4.0 | % | 7.0 | % | 4.1 | % | 2.0 | % | ||||||||||||||
2019 | 2018 | |||||||||||||||||||||||||||
Year to date, SEK million |
Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||||||||
Gross income |
60,390 | 38,850 | 18,779 | 68,200 | 51,821 | 32,191 | 14,858 | |||||||||||||||||||||
Net sales |
160,843 | 103,716 | 48,906 | 210,838 | 147,029 | 93,219 | 43,411 | |||||||||||||||||||||
Gross margin (%) |
37.5 | % | 37.5 | % | 38.4 | % | 32.3 | % | 35.2 | % | 34.5 | % | 34.2 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Gross income |
60,390 | 38,850 | 18,779 | 68,200 | 51,821 | 32,191 | 14,858 | |||||||||||||||||||||
Restructuring charges included in cost of sales |
119 | 91 | 65 | 5,938 | 1,884 | 1,680 | 743 | |||||||||||||||||||||
Gross income excluding restructuring charges |
60,509 | 38,941 | 18,844 | 74,138 | 53,705 | 33,871 | 15,601 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net sales |
160,843 | 103,716 | 48,906 | 210,838 | 147,029 | 93,219 | 43,411 | |||||||||||||||||||||
Gross margin excluding restructuring charges (%) |
37.6 | % | 37.5 | % | 38.5 | % | 35.2 | % | 36.5 | % | 36.3 | % | 35.9 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Operating expenses |
-45,187 | -30,970 | -14,639 | -66,848 | -48,884 | -32,462 | -15,257 | |||||||||||||||||||||
Restructuring charges included in R&D expenses |
265 | 167 | 118 | 1,293 | 1,042 | 828 | 326 | |||||||||||||||||||||
Restructuring charges included in selling and administrative expenses |
87 | 66 | 23 | 784 | 678 | 544 | 103 | |||||||||||||||||||||
Operating expenses excluding restructuring charges |
-44,835 | -30,737 | -14,498 | -64,771 | -47,164 | -31,090 | -14,828 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Operating income (loss) |
4,439 | 8,635 | 4,896 | 1,242 | 3,094 | -147 | -312 | |||||||||||||||||||||
Net sales |
160,843 | 103,716 | 48,906 | 210,838 | 147,029 | 93,219 | 43,411 | |||||||||||||||||||||
Operating margin (%) |
2.8 | % | 8.3 | % | 10.0 | % | 0.6 | % | 2.1 | % | -0.2 | % | -0.7 | % | ||||||||||||||
|
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|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Operating income (loss) |
4,439 | 8,635 | 4,896 | 1,242 | 3,094 | -147 | -312 | |||||||||||||||||||||
Total restructuring charges |
471 | 324 | 206 | 8,015 | 3,604 | 3,052 | 1,172 | |||||||||||||||||||||
Operating income (loss) excluding restructuring charges |
4,910 | 8,959 | 5,102 | 9,257 | 6,698 | 2,905 | 860 | |||||||||||||||||||||
|
|
|
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|
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|
|
|
|
|
|
|
|
|||||||||||||||
Net sales |
160,843 | 103,716 | 48,906 | 210,838 | 147,029 | 93,219 | 43,411 | |||||||||||||||||||||
Operating margin excluding restructuring charges (%) |
3.1 | % | 8.6 | % | 10.4 | % | 4.4 | % | 4.6 | % | 3.1 | % | 2.0 | % |
47 | Ericsson | Third quarter report 2019 | Alternative performance measures |
Earnings (loss) before interest, taxes, amortization and write-downs of acquired intangibles, also expressed as a percentage of net sales.
2019 | 2018 | |||||||||||||||||||||||||||
Isolated quarters, SEK million |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||
Net income (loss) |
-6,894 | 1,847 | 2,403 | -6,497 | 2,748 | -1,802 | -725 | |||||||||||||||||||||
Taxes |
2,013 | 1,451 | 1,888 | 3,930 | -146 | 1,157 | -128 | |||||||||||||||||||||
Financial income and expenses, net |
685 | 441 | 605 | 715 | 639 | 810 | 541 | |||||||||||||||||||||
Amortization and write-downs of acquired intangibles |
229 | 226 | 314 | 621 | 344 | 350 | 347 | |||||||||||||||||||||
EBITA |
-3,967 | 3,965 | 5,210 | -1,231 | 3,585 | 515 | 35 | |||||||||||||||||||||
|
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|
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|
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|
|
|||||||||||||||
Net sales |
57,127 | 54,810 | 48,906 | 63,809 | 53,810 | 49,808 | 43,411 | |||||||||||||||||||||
EBITA margin (%) |
-6.9 | % | 7.2 | % | 10.7 | % | -1.9 | % | 6.7 | % | 1.0 | % | 0.1 | % | ||||||||||||||
2019 | 2018 | |||||||||||||||||||||||||||
Year to date, SEK million |
Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||||||||
Net income (loss) |
-2,644 | 4,250 | 2,403 | -6,276 | 221 | -2,527 | -725 | |||||||||||||||||||||
Taxes |
5,352 | 3,339 | 1,888 | 4,813 | 883 | 1,029 | -128 | |||||||||||||||||||||
Financial income and expenses, net |
1,731 | 1,046 | 605 | 2,705 | 1,990 | 1,351 | 541 | |||||||||||||||||||||
Amortization and write-downs of acquired intangibles |
769 | 540 | 314 | 1,662 | 1,041 | 697 | 347 | |||||||||||||||||||||
EBITA |
5,208 | 9,175 | 5,210 | 2,904 | 4,135 | 550 | 35 | |||||||||||||||||||||
|
|
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|
|
|
|
|
|
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|
|
|
|||||||||||||||
Net sales |
160,843 | 103,716 | 48,906 | 210,838 | 147,029 | 93,219 | 43,411 | |||||||||||||||||||||
EBITA margin (%) |
3.2 | % | 8.8 | % | 10.7 | % | 1.4 | % | 2.8 | % | 0.6 | % | 0.1 | % |
Cash flow from operating activities divided by the sum of net income (loss) and adjustments to reconcile net income to cash, expressed as a percentage.
2019 | 2018 | |||||||||||||||||||||||||||
Isolated quarters, SEK million |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||
Net income (loss) |
-6,894 | 1,847 | 2,403 | -6,497 | 2,748 | -1,802 | -725 | |||||||||||||||||||||
Net income reconciled to cash |
-4,320 | 4,952 | 5,481 | -98 | 2,916 | -259 | -1,005 | |||||||||||||||||||||
Cash flow from operating activities |
6,989 | 3,623 | 5,765 | 4,287 | 2,040 | 1,442 | 1,573 | |||||||||||||||||||||
Cash conversion (%) |
-161.8 | % | 73.2 | % | 105.2 | % | -4374.5 | % | 70.0 | % | -556.8 | % | -156.5 | % | ||||||||||||||
2019 | 2018 | |||||||||||||||||||||||||||
Year to date, SEK million |
Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||||||||
Net income (loss) |
-2,644 | 4,250 | 2,403 | -6,276 | 221 | -2,527 | -725 | |||||||||||||||||||||
Net income reconciled to cash |
6,113 | 10,433 | 5,481 | 1,554 | 1,652 | -1,264 | -1,005 | |||||||||||||||||||||
Cash flow from operating activities |
16,377 | 9,388 | 5,765 | 9,342 | 5,055 | 3,015 | 1,573 | |||||||||||||||||||||
Cash conversion (%) |
267.9 | % | 90.0 | % | 105.2 | % | 601.2 | % | 306.0 | % | -238.5 | % | -156.5 | % |
48 | Ericsson | Third quarter report 2019 | Alternative performance measures |
Gross cash and net cash, end of period
Gross cash: Cash and cash equivalents plus interest-bearing securities (current and non-current). Net cash: Cash and cash equivalents plus interest-bearing securities (current and non-current) less borrowings (current and non-current).
2019 | 2018 | |||||||||||||||||||||||||||
SEK million |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||
Cash and cash equivalents |
51,183 | 45,498 | 45,453 | 38,389 | 36,058 | 37,049 | 36,697 | |||||||||||||||||||||
+ Interest-bearing securities, current |
5,866 | 6,367 | 3,183 | 6,625 | 6,591 | 8,304 | 5,453 | |||||||||||||||||||||
+ Interest-bearing securities, non-current |
19,157 | 17,091 | 23,022 | 23,982 | 23,014 | 21,501 | 27,104 | |||||||||||||||||||||
Gross cash, end of period |
76,206 | 68,956 | 71,658 | 68,996 | 65,663 | 66,854 | 69,254 | |||||||||||||||||||||
- Borrowings, current |
1,622 | 2,160 | 3,015 | 2,255 | 2,463 | 2,642 | 2,554 | |||||||||||||||||||||
- Borrowings, non-current |
37,153 | 33,040 | 32,533 | 30,870 | 31,187 | 31,131 | 31,134 | |||||||||||||||||||||
Net cash, end of period |
37,431 | 33,756 | 36,110 | 35,871 | 32,013 | 33,081 | 35,566 |
Total assets less non-interest-bearing provisions and liabilities.
2019 | 2018 | |||||||||||||||||||||||||||
SEK million |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||
Total assets |
288,531 | 280,447 | 283,958 | 268,761 | 264,848 | 265,322 | 260,681 | |||||||||||||||||||||
Non-interest-bearing provisions and liabilities |
||||||||||||||||||||||||||||
Provisions, non-current |
2,308 | 2,646 | 2,670 | 5,471 | 3,420 | 2,819 | 2,597 | |||||||||||||||||||||
Deferred tax liabilities |
857 | 1,178 | 792 | 670 | 1,274 | 1,332 | 1,325 | |||||||||||||||||||||
Other non-current liabilities |
2,163 | 2,160 | 2,118 | 4,346 | 4,456 | 4,549 | 2,792 | |||||||||||||||||||||
Provisions, current |
19,699 | 8,712 | 9,363 | 10,537 | 5,275 | 6,715 | 6,435 | |||||||||||||||||||||
Contract liabilities |
34,499 | 37,264 | 38,605 | 29,348 | 30,108 | 30,959 | 30,391 | |||||||||||||||||||||
Trade payables |
30,672 | 31,388 | 30,842 | 29,883 | 28,914 | 28,563 | 26,453 | |||||||||||||||||||||
Other current liabilities |
34,624 | 33,351 | 38,528 | 38,891 | 36,323 | 35,746 | 37,888 | |||||||||||||||||||||
Capital employed |
163,709 | 163,748 | 161,040 | 149,615 | 155,078 | 154,639 | 152,800 |
Annualized net sales divided by average capital employed.
2019 | 2018 | |||||||||||||||||||||||||||
Isolated quarters, SEK million |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||
Net sales |
57,127 | 54,810 | 48,906 | 63,809 | 53,810 | 49,808 | 43,411 | |||||||||||||||||||||
Annualized net sales |
228,508 | 219,240 | 195,624 | 255,236 | 215,240 | 199,232 | 173,644 | |||||||||||||||||||||
Average capital employed |
||||||||||||||||||||||||||||
Capital employed at beginning of period |
163,748 | 161,040 | 149,615 | 155,078 | 154,639 | 152,800 | 155,625 | |||||||||||||||||||||
Capital employed at end of period |
163,709 | 163,748 | 161,040 | 149,615 | 155,078 | 154,639 | 152,800 | |||||||||||||||||||||
Average capital employed |
163,729 | 162,394 | 155,328 | 152,347 | 154,859 | 153,720 | 154,213 | |||||||||||||||||||||
Capital turnover (times) |
1.4 | 1.4 | 1.3 | 1.7 | 1.4 | 1.3 | 1.1 | |||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||||||||||
Year to date, SEK million |
Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||||||||
Net sales |
160,843 | 103,716 | 48,906 | 210,838 | 147,029 | 93,219 | 43,411 | |||||||||||||||||||||
Annualized net sales |
214,457 | 207,432 | 195,624 | 210,838 | 196,039 | 186,438 | 173,644 | |||||||||||||||||||||
Average capital employed |
||||||||||||||||||||||||||||
Capital employed at beginning of period |
149,615 | 149,615 | 149,615 | 155,625 | 155,625 | 155,625 | 155,625 | |||||||||||||||||||||
Capital employed at end of period |
163,709 | 163,748 | 161,040 | 149,615 | 155,078 | 154,639 | 152,800 | |||||||||||||||||||||
Average capital employed |
156,662 | 156,682 | 155,328 | 152,620 | 155,352 | 155,132 | 154,213 | |||||||||||||||||||||
Capital turnover (times) |
1.4 | 1.3 | 1.3 | 1.4 | 1.3 | 1.2 | 1.1 |
49 | Ericsson | Third quarter report 2019 | Alternative performance measures |
The annualized total of operating income (loss) as a percentage of average capital employed.
The definition is updated. Refer to the clarification provided at the beginning of the APM section.
2019 | 2018 | |||||||||||||||||||||||||||
Isolated quarters, SEK million |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||
Operating income (loss) |
-4,196 | 3,739 | 4,896 | -1,852 | 3,241 | 165 | -312 | |||||||||||||||||||||
Annualized operating income (loss) |
-16,784 | 14,956 | 19,584 | -7,408 | 12,964 | 660 | -1,248 | |||||||||||||||||||||
Average capital employed |
||||||||||||||||||||||||||||
Capital employed at beginning of period |
163,748 | 161,040 | 149,615 | 155,078 | 154,639 | 152,800 | 155,625 | |||||||||||||||||||||
Capital employed at end of period |
163,709 | 163,748 | 161,040 | 149,615 | 155,078 | 154,639 | 152,800 | |||||||||||||||||||||
Average capital employed |
163,729 | 162,394 | 155,328 | 152,347 | 154,859 | 153,720 | 154,213 | |||||||||||||||||||||
Return on capital employed (%) |
-10.3 | % | 9.2 | % | 12.6 | % | -4.9 | % | 8.4 | % | 0.4 | % | -0.8 | % | ||||||||||||||
2019 | 2018 | |||||||||||||||||||||||||||
Year to date, SEK million |
Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||||||||
Operating income (loss) |
4,439 | 8,635 | 4,896 | 1,242 | 3,094 | -147 | -312 | |||||||||||||||||||||
Annualized operating income (loss) |
5,919 | 17,270 | 19,584 | 1,242 | 4,125 | -294 | -1,248 | |||||||||||||||||||||
Average capital employed |
||||||||||||||||||||||||||||
Capital employed at beginning of period |
149,615 | 149,615 | 149,615 | 155,625 | 155,625 | 155,625 | 155,625 | |||||||||||||||||||||
Capital employed at end of period |
163,709 | 163,748 | 161,040 | 149,615 | 155,078 | 154,639 | 152,800 | |||||||||||||||||||||
Average capital employed |
156,662 | 156,682 | 155,328 | 152,620 | 155,352 | 155,132 | 154,213 | |||||||||||||||||||||
Return on capital employed (%) |
3.8 | % | 11.0 | % | 12.6 | % | 0.8 | % | 2.7 | % | -0.2 | % | -0.8 | % |
Equity expressed as a percentage of total assets.
2019 | 2018 | |||||||||||||||||||||||||||
SEK million |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||
Total equity |
77,475 | 84,533 | 84,532 | 87,770 | 95,953 | 93,560 | 93,466 | |||||||||||||||||||||
Total assets |
288,531 | 280,447 | 283,958 | 268,761 | 264,848 | 265,322 | 260,681 | |||||||||||||||||||||
Equity ratio (% ) |
26.9 | % | 30.1 | % | 29.8 | % | 32.7 | % | 36.2 | % | 35.3 | % | 35.9 | % |
Annualized net income (loss) attributable to stockholders of the Parent Company as a percentage of average stockholders equity.
2019 | 2018 | |||||||||||||||||||||||||||
Isolated quarters, SEK million |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||
Net income (loss) attributable to stockholders of the Parent Company |
-6,229 | 1,705 | 2,317 | -6,553 | 2,745 | -1,885 | -837 | |||||||||||||||||||||
Annualized |
-24,916 | 6,820 | 9,268 | -26,212 | 10,980 | -7,540 | -3,348 | |||||||||||||||||||||
Average stockholders equity |
||||||||||||||||||||||||||||
Stockholders equity, beginning of period |
84,488 | 84,619 | 86,978 | 95,087 | 92,689 | 92,703 | 95,952 | |||||||||||||||||||||
Stockholders equity, end of period |
78,200 | 84,488 | 84,619 | 86,978 | 95,087 | 92,689 | 92,703 | |||||||||||||||||||||
Average stockholders equity |
81,344 | 84,554 | 85,799 | 91,033 | 93,888 | 92,696 | 94,328 | |||||||||||||||||||||
Return on equity (%) |
-30.6 | % | 8.1 | % | 10.8 | % | -28.8 | % | 11.7 | % | -8.1 | % | -3.5 | % | ||||||||||||||
2019 | 2018 | |||||||||||||||||||||||||||
Year to date, SEK million |
Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||||||||
Net income (loss) attributable to stockholders of the Parent Company |
-2,207 | 4,022 | 2,317 | -6,530 | 23 | -2,722 | -837 | |||||||||||||||||||||
Annualized |
-2,943 | 8,044 | 9,268 | -6,530 | 31 | -5,444 | -3,348 | |||||||||||||||||||||
Average stockholders equity |
||||||||||||||||||||||||||||
Stockholders equity, beginning of period |
86,978 | 86,978 | 86,978 | 95,952 | 95,952 | 95,952 | 95,952 | |||||||||||||||||||||
Stockholders equity, end of period |
78,200 | 84,488 | 84,619 | 86,978 | 95,087 | 92,689 | 92,703 | |||||||||||||||||||||
Average stockholders equity |
82,589 | 85,733 | 85,799 | 91,465 | 95,520 | 94,321 | 94,328 | |||||||||||||||||||||
Return on equity (%) |
-3.6 | % | 9.4 | % | 10.8 | % | -7.1 | % | 0.0 | % | -5.8 | % | -3.5 | % |
50 | Ericsson | Third quarter report 2019 | Alternative performance measures |
Earnings (loss) per share (non-IFRS)
Earnings (loss) per share, diluted, excluding amortizations and write-down of acquired intangible assets and excluding restructuring charges.
2019 | 2018 | |||||||||||||||||||||||||||
Isolated quarters, SEK |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||
Earnings (loss) per share, diluted |
-1.89 | 0.51 | 0.70 | -1.99 | 0.83 | -0.58 | -0.25 | |||||||||||||||||||||
Restructuring charges |
0.04 | 0.02 | 0.05 | 1.06 | 0.12 | 0.41 | 0.30 | |||||||||||||||||||||
Amortization and write-downs of acquired intangibles |
0.05 | 0.06 | 0.05 | 0.16 | 0.08 | 0.08 | 0.06 | |||||||||||||||||||||
Earnings (loss) per share (non-IRFS) |
-1.80 | 0.59 | 0.80 | -0.77 | 1.03 | -0.09 | 0.11 | |||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||||||||||
Year to date, SEK |
Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||||||||
Earnings (loss) per share, diluted |
-0.67 | 1.21 | 0.70 | -1.98 | 0.01 | -0.83 | -0.25 | |||||||||||||||||||||
Restructuring charges |
0.11 | 0.07 | 0.05 | 1.88 | 0.82 | 0.71 | 0.30 | |||||||||||||||||||||
Amortization and write-downs of acquired intangibles |
0.16 | 0.11 | 0.05 | 0.37 | 0.21 | 0.14 | 0.06 | |||||||||||||||||||||
Earnings (loss) per share (non-IRFS) |
-0.40 | 1.39 | 0.80 | 0.27 | 1.04 | 0.02 | 0.11 |
Free cash flow and free cash flow excluding M&A
Free cash flow: Cash flow from operating activities less net capital expenditures and other investments.
Free cash flow excluding M&A: Cash flow from operating activities less net capital expenditures and other investments (excluding M&A).
2019 | 2018 | |||||||||||||||||||||||||||
Isolated quarters, SEK million |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||
Cash flow from operating activities |
6,989 | 3,623 | 5,765 | 4,287 | 2,040 | 1,442 | 1,573 | |||||||||||||||||||||
Net capital expenditures and other investments (excluding M&A) |
||||||||||||||||||||||||||||
Investments in property, plant and equipment |
-1,231 | -1,098 | -1,314 | -1,080 | -1,088 | -951 | -856 | |||||||||||||||||||||
Sales of property, plant and equipment |
122 | 184 | 232 | 57 | 102 | 52 | 123 | |||||||||||||||||||||
Product development |
-313 | -446 | -457 | -195 | -151 | -325 | -254 | |||||||||||||||||||||
Other investing activities |
-56 | -36 | -165 | -96 | -190 | -398 | 161 | |||||||||||||||||||||
Free cash flow excluding M&A |
5,511 | 2,227 | 4,061 | 2,973 | 713 | -180 | 747 | |||||||||||||||||||||
Acquisitions/divestments of subsidiaries and other operations, net |
-466 | 3 | 299 | 20 | -425 | -431 | -449 | |||||||||||||||||||||
Free cash flow |
5,045 | 2,230 | 4,360 | 2,993 | 288 | -611 | 298 | |||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||||||||||
Year to date, SEK million |
Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||||||||
Cash flow from operating activities |
16,377 | 9,388 | 5,765 | 9,342 | 5,055 | 3,015 | 1,573 | |||||||||||||||||||||
Net capital expenditures and other investments (excluding M&A) |
||||||||||||||||||||||||||||
Investments in property, plant and equipment |
-3,643 | -2,412 | -1,314 | -3,975 | -2,895 | -1,807 | -856 | |||||||||||||||||||||
Sales of property, plant and equipment |
538 | 416 | 232 | 334 | 277 | 175 | 123 | |||||||||||||||||||||
Product development |
-1,216 | -903 | -457 | -925 | -730 | -579 | -254 | |||||||||||||||||||||
Other investing activities |
-257 | -201 | -165 | -523 | -427 | -237 | 161 | |||||||||||||||||||||
Free cash flow excluding M&A |
11,799 | 6,288 | 4,061 | 4,253 | 1,280 | 567 | 747 | |||||||||||||||||||||
Acquisitions/divestments of subsidiaries and other operations, net |
-164 | 302 | 299 | -1,285 | -1,305 | -880 | -449 | |||||||||||||||||||||
Free cash flow |
11,635 | 6,590 | 4,360 | 2,968 | -25 | -313 | 298 |
51 | Ericsson | Third quarter report 2019 | Alternative performance measures |