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
July 18, 2017
Commission File Number
000-12033
LM ERICSSON TELEPHONE COMPANY
(Translation of registrants name into English)
Torshamnsgatan 21, Kista
SE-164 83, Stockholm, Sweden
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐
Announcement of LM Ericsson Telephone Company, July 18, 2017 regarding Ericsson reports second quarter results 2017.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
TELEFONAKTIEBOLAGET LM ERICSSON (publ) | ||
By: | /s/ NINA MACPHERSON | |
Nina Macpherson | ||
Senior Vice President & Chief Legal Officer | ||
By: | /s/ HELENA NORRMAN | |
Helena Norrman | ||
Senior Vice President | ||
Corporate Marketing & Communications Officer |
Date: July 18, 2017
SECOND QUARTER 2017
Stockholm, July 18, 2017
SECOND QUARTER HIGHLIGHTS |
Read more | |||
| Reported sales decreased by -8% YoY. Sales, adjusted for comparable units and currency, decreased by -13% YoY. The RAN equipment market for 2017 is estimated to show a high single-digit percentage decline compared with previous estimate of -2% to -6%. | 2 | ||
| Gross margin was 27.9% (32.3%). Gross margin, excluding restructuring charges, was 29.8% (33.2%). | 3 | ||
| Operating income was SEK -1.2 b. Operating income, excluding restructuring charges was SEK 0.3 b., with a YoY decline in all segments. | 4 | ||
| Networks operating margin was 7%. Operating margin, excluding restructuring charges, declined to 10% (13%) negatively impacted by continued lower software sales. | 6 | ||
| IT & Cloud operating income was negatively impacted by less capitalization of development expenses QoQ and YoY. | 7 | ||
| Planned cost reduction activities will be accelerated, due to current market environment, to achieve an annual run rate reduction of at least SEK 10 b. by mid-2018. | 2 | ||
| The company sees an increased risk of further market and customer project adjustments with an estimated negative impact on operating income of SEK 3-5 b. for the coming 12 months. | 2 | ||
| Due to technology and portfolio shifts capitalization of costs will be reduced and is estimated to result in a net negative impact on operating income of SEK -2.9 (1.3) b. in the second half 2017, with no impact on cash. | 2 | ||
| Cash flow from operating activities was SEK 0.0 (-0.7) b. | 9 |
SEK b. |
Q2 2017 |
Q2 2016 |
YoY change |
Q1 2017 |
QoQ change |
6 months 2017 |
6 months 2016 |
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Net sales |
49.9 | 54.1 | -8 | % | 46.4 | 8 | % | 96.3 | 106.3 | |||||||||||||||||||
Net sales adjusted for items affecting comparability in Q1 2017 |
49.9 | 54.1 | -8 | % | 47.8 | 4 | % | 97.7 | 106.3 | |||||||||||||||||||
Sales growth adj. for comparable units and currency |
| | -13 | % | | 9 | % | -15 | % | -4 | % | |||||||||||||||||
Gross margin |
27.9 | % | 32.3 | % | | 13.9 | % | | 21.2 | % | 32.8 | % | ||||||||||||||||
Gross margin excluding restructuring charges and adjusted for items affecting comparability in Q1 2017 |
29.8 | % | 33.2 | % | | 30.5 | % | | 30.1 | % | 33.6 | % | ||||||||||||||||
Operating income |
-1.2 | 2.8 | -145 | % | -12.3 | -90 | % | -13.6 | 6.2 | |||||||||||||||||||
Operating income excluding restructuring charges and adjusted for items affecting comparability in Q1 2017 |
0.3 | 3.8 | -93 | % | 1.1 | -74 | % | 1.4 | 7.9 | |||||||||||||||||||
Operating margin |
-2.5 | % | 5.1 | % | | -26.6 | % | | -14.1 | % | 5.9 | % | ||||||||||||||||
Operating margin excluding restructuring charges and adjusted for items affecting comparability in Q1 2017 |
0.6 | % | 7.0 | % | | 2.3 | % | | 1.4 | % | 7.4 | % | ||||||||||||||||
Net income |
-1.0 | 1.6 | -164 | % | -10.9 | -91 | % | -11.9 | 3.7 | |||||||||||||||||||
EPS diluted, SEK |
-0.30 | 0.48 | -163 | % | -3.29 | -91 | % | -3.59 | 1.08 | |||||||||||||||||||
EPS (non-IFRS), SEK1) |
0.17 | 0.83 | -80 | % | -2.42 | -107 | % | -2.25 | 1.70 | |||||||||||||||||||
Cash flow from operating activities |
0.0 | -0.7 | -100 | % | -1.5 | -100 | % | -1.5 | -3.1 | |||||||||||||||||||
Net cash, end of period |
24.0 | 21.0 | 14 | % | 28.3 | -15 | % | 24.0 | 21.0 |
1) | EPS diluted, excl. amortizations and write-downs of acquired intangible assets, and excluding restructuring charges. |
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 | Second Quarter Report 2017
CEO COMMENTS
2 Ericsson | Second Quarter Report 2017
FINANCIAL HIGHLIGHTS
SEK b. |
Q2 2017 |
Q2 2016 |
YoY change |
Q1 2017 |
QoQ change |
6 months 2017 |
6 months 2016 |
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Net sales |
49.9 | 54.1 | -8 | % | 46.4 | 8 | % | 96.3 | 106.3 | |||||||||||||||||||
Of which Networks |
36.8 | 40.2 | -8 | % | 34.9 | 6 | % | 71.7 | 80.2 | |||||||||||||||||||
Of which IT & Cloud |
10.9 | 11.5 | -5 | % | 9.5 | 14 | % | 20.4 | 21.3 | |||||||||||||||||||
Of which Other |
2.2 | 2.4 | -6 | % | 2.0 | 13 | % | 4.2 | 4.8 | |||||||||||||||||||
Gross income |
13.9 | 17.5 | -20 | % | 6.4 | 116 | % | 20.4 | 34.9 | |||||||||||||||||||
Gross margin (%) |
27.9 | % | 32.3 | % | | 13.9 | % | | 21.2 | % | 32.8 | % | ||||||||||||||||
Research and development expenses |
-8.4 | -7.4 | 13 | % | -9.1 | -8 | % | -17.4 | -14.9 | |||||||||||||||||||
Selling and administrative expenses |
-7.1 | -7.1 | -1 | % | -9.9 | -28 | % | -16.9 | -13.8 | |||||||||||||||||||
Other operating income and expenses |
0.2 | -0.2 | -204 | % | 0.1 | 70 | % | 0.4 | 0.0 | |||||||||||||||||||
Operating income |
-1.2 | 2.8 | -145 | % | -12.3 | -90 | % | -13.6 | 6.2 | |||||||||||||||||||
Operating margin |
-2.5 | % | 5.1 | % | | -26.6 | % | | -14.1 | % | 5.9 | % | ||||||||||||||||
for Networks |
7 | % | 12 | % | | -2 | % | | 3 | % | 13 | % | ||||||||||||||||
for IT & Cloud |
-26 | % | -13 | % | | -94 | % | | -58 | % | -17 | % | ||||||||||||||||
for Other |
-44 | % | -20 | % | | -143 | % | | -90 | % | -16 | % | ||||||||||||||||
Financial net |
0.1 | -0.5 | -112 | % | -0.4 | -114 | % | -0.4 | -1.0 | |||||||||||||||||||
Taxes |
0.2 | -0.7 | -126 | % | 1.9 | -91 | % | 2.1 | -1.6 | |||||||||||||||||||
Net income |
-1.0 | 1.6 | -164 | % | -10.9 | -91 | % | -11.9 | 3.7 | |||||||||||||||||||
Restructuring charges |
-1.5 | -1.0 | 48 | % | -1.7 | -13 | % | -3.3 | -1.7 |
3 Ericsson | Second Quarter Report 2017
4 Ericsson | Second Quarter Report 2017
MARKET AREA SALES
Second quarter 2017 | Change | |||||||||||||||||||||||
SEK b. |
Networks | IT & Cloud |
Other | Total | YoY | QoQ | ||||||||||||||||||
South East Asia, Oceania and India |
6.3 | 1.3 | 0.1 | 7.7 | 0 | % | -3 | % | ||||||||||||||||
North East Asia |
4.1 | 1.7 | 0.0 | 5.9 | -3 | % | 5 | % | ||||||||||||||||
North America |
10.0 | 2.1 | 0.5 | 12.5 | -7 | % | 5 | % | ||||||||||||||||
Europe and Latin America |
10.5 | 3.9 | 0.9 | 15.2 | -11 | % | 20 | % | ||||||||||||||||
Middle East and Africa |
4.2 | 1.8 | 0.1 | 6.0 | -17 | % | 11 | % | ||||||||||||||||
Other 1) |
1.8 | 0.2 | 0.7 | 2.7 | 0 | % | -8 | % | ||||||||||||||||
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Total |
36.8 | 10.9 | 2.2 | 49.9 | -8 | % | 8 | % | ||||||||||||||||
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1) | Market Area Other includes licensing revenues, power modules, mobile broadband modules, Ericsson-LG Enterprise and other businesses. |
5 Ericsson | Second Quarter Report 2017
SEGMENT RESULTS
NETWORKS
Q2 | Q2 | YoY | Q1 | QoQ | 6 months | 6 months | ||||||||||||||||||||||
SEK b. |
2017 | 2016 | change | 2017 | change | 2017 | 2016 | |||||||||||||||||||||
Net sales |
36.8 | 40.2 | -8 | % | 34.9 | 6 | % | 71.7 | 80.2 | |||||||||||||||||||
Of which products |
20.8 | 23.0 | -10 | % | 19.4 | 7 | % | 40.2 | 45.8 | |||||||||||||||||||
Of which IPR licensing revenues |
1.6 | 1.7 | -9 | % | 1.6 | -3 | % | 3.2 | 4.8 | |||||||||||||||||||
Of which services |
16.1 | 17.2 | -7 | % | 15.5 | 4 | % | 31.5 | 34.3 | |||||||||||||||||||
Net sales adjusted for items affecting comparability in Q1 2017 |
36.8 | 40.2 | -8 | % | 36.2 | 2 | % | 73.0 | 80.2 | |||||||||||||||||||
Sales growth adj. for comparable units and currency |
| | -14 | % | | 7 | % | -16 | % | | ||||||||||||||||||
Gross income |
10.4 | 12.5 | -17 | % | 8.0 | 30 | % | 18.3 | 25.5 | |||||||||||||||||||
Gross income excluding restructuring charges and adj. for items affecting comparability in Q1 2017 |
11.0 | 12.9 | -15 | % | 11.3 | -3 | % | 22.2 | 26.1 | |||||||||||||||||||
Gross margin |
28 | % | 31 | % | | 23 | % | | 26 | % | 32 | % | ||||||||||||||||
Gross margin excluding restructuring charges and adj. for items affecting comparability in Q1 2017 |
30 | % | 32 | % | | 31 | % | | 30 | % | 33 | % | ||||||||||||||||
Operating income |
2.6 | 4.8 | -46 | % | -0.5 | | 2.1 | 10.6 | ||||||||||||||||||||
Operating income excluding restructuring charges and adj. for items affecting comparability in Q1 2017 |
3.5 | 5.3 | -33 | % | 4.3 | -19 | % | 7.9 | 11.5 | |||||||||||||||||||
Operating margin |
7 | % | 12 | % | | -2 | % | | 3 | % | 13 | % | ||||||||||||||||
Operating margin excluding restructuring charges and adj. for items affecting comparability in Q1 2017 |
10 | % | 13 | % | | 12 | % | | 11 | % | 14 | % | ||||||||||||||||
EBITA margin |
7 | % | 12 | % | | -1 | % | | 3 | % | 14 | % | ||||||||||||||||
Restructuring charges |
-0.9 | -0.5 | 97 | % | -1.4 | | -2.4 | -0.9 |
6 Ericsson | Second Quarter Report 2017
IT & CLOUD
Q2 | Q2 | YoY | Q1 | QoQ | 6 months | 6 months | ||||||||||||||||||||||
SEK b. |
2017 | 2016 | change | 2017 | change | 2017 | 2016 | |||||||||||||||||||||
Net sales |
10.9 | 11.5 | -5 | % | 9.5 | 14 | % | 20.4 | 21.3 | |||||||||||||||||||
Of which products |
5.1 | 5.3 | -4 | % | 4.1 | 23 | % | 9.2 | 10.1 | |||||||||||||||||||
Of which IPR licensing revenues |
0.2 | 0.2 | -10 | % | 0.2 | -3 | % | 0.4 | 0.6 | |||||||||||||||||||
Of which services |
5.8 | 6.2 | -6 | % | 5.4 | 7 | % | 11.3 | 11.3 | |||||||||||||||||||
Net sales adjusted for items affecting comparability in Q1 2017 |
10.9 | 11.5 | -5 | % | 9.6 | 13 | % | 20.5 | 21.3 | |||||||||||||||||||
Sales growth adj. for comparable units and currency |
| | -10 | % | | 16 | % | -8 | % | | ||||||||||||||||||
Gross income |
2.8 | 4.1 | -30 | % | -2.1 | | 0.7 | 7.3 | ||||||||||||||||||||
Gross income excluding restructuring charges and adj. for items affecting comparability in Q1 2017 |
3.1 | 4.2 | -26 | % | 2.7 | 13 | % | 5.8 | 7.5 | |||||||||||||||||||
Gross margin |
26 | % | 35 | % | | -22 | % | | 4 | % | 34 | % | ||||||||||||||||
Gross margin excluding restructuring charges and adj. for items affecting comparability in Q1 2017 |
28 | % | 36 | % | | 28 | % | | 28 | % | 35 | % | ||||||||||||||||
Operating income |
-2.9 | -1.5 | 86 | % | -9.0 | -68 | % | -11.9 | -3.5 | |||||||||||||||||||
Operating income excluding restructuring charges and adj. for items affecting comparability in Q1 2017 |
-2.4 | -1.1 | 126 | % | -2.2 | 8 | % | -4.7 | -2.9 | |||||||||||||||||||
Operating margin |
-26 | % | -13 | % | | -94 | % | | -58 | % | -17 | % | ||||||||||||||||
Operating margin excluding restructuring charges and adj. for items affecting comparability in Q1 2017 |
-22 | % | -9 | % | | -23 | % | | -23 | % | -13 | % | ||||||||||||||||
EBITA margin |
-24 | % | -11 | % | | -86 | % | | -53 | % | -14 | % | ||||||||||||||||
Restructuring charges |
-0.5 | -0.5 | | -0.2 | | -0.7 | -0.7 |
7 Ericsson | Second Quarter Report 2017
OTHER
Q2 | Q2 | YoY | Q1 | QoQ | 6 months | 6 months | ||||||||||||||||||||||
SEK b. |
2017 | 2016 | change | 2017 | change | 2017 | 2016 | |||||||||||||||||||||
Net sales |
2.2 | 2.4 | -6 | % | 2.0 | 13 | % | 4.2 | 4.8 | |||||||||||||||||||
Of which IPR licensing revenues |
0.2 | 0.2 | -10 | % | 0.2 | -3 | % | 0.4 | 0.6 | |||||||||||||||||||
Sales growth adj. for comparable units and currency |
| | -11 | % | | 13 | % | -17 | % | | ||||||||||||||||||
Gross income |
0.7 | 0.9 | -18 | % | 0.6 | 34 | % | 1.3 | 2.0 | |||||||||||||||||||
Gross income excluding restructuring charges and adj. for items affecting comparability in Q1 2017 |
0.8 | 0.9 | -12 | % | 0.6 | 33 | % | 1.4 | 2.0 | |||||||||||||||||||
Gross margin |
34 | % | 39 | % | | 28 | % | | 31 | % | 42 | % | ||||||||||||||||
Gross margin excluding restructuring charges and adj. for items affecting comparability in Q1 2017 |
37 | % | 39 | % | | 31 | % | | 34 | % | 42 | % | ||||||||||||||||
Operating income |
-1.0 | -0.5 | 101 | % | -2.8 | -66 | % | -3.8 | -0.8 | |||||||||||||||||||
Operating income excluding restructuring charges and adj for items affecting comparability in Q1 2017 |
-0.8 | -0.4 | 105 | % | -1.0 | -16 | % | -1.8 | -0.7 | |||||||||||||||||||
Operating margin |
-44 | % | -20 | % | | -143 | % | | -90 | % | -16 | % | ||||||||||||||||
Operating margin excluding restructuring charges and adj. for items affecting comparability in Q1 2017 |
-38 | % | -17 | % | | -51 | % | | -44 | % | -15 | % | ||||||||||||||||
EBITA margin |
-38 | % | -12 | % | | -95 | % | | -65 | % | -8 | % | ||||||||||||||||
Restructuring charges |
-0.1 | -0.1 | | -0.1 | | -0.2 | -0.1 |
The former Media segment is renamed to Other in the external reporting as per Q2 2017.
8 Ericsson | Second Quarter Report 2017
CASH FLOW
Q2 | Q2 | Q1 | ||||||||||
SEK b. |
2017 | 2016 | 2017 | |||||||||
Net income reconciled to cash |
-0.8 | 1.3 | -9.2 | |||||||||
Changes in operating net assets |
0.8 | -2.0 | 7.7 | |||||||||
Cash flow from operating activities |
0.0 | -0.7 | -1.5 | |||||||||
Cash flow from investing activities |
-2.0 | 1.4 | -13.6 | |||||||||
Cash flow from financing activities |
-8.9 | -9.3 | 10.9 | |||||||||
Net change in cash and cash equivalents |
-11.5 | -7.0 | -4.0 | |||||||||
Cash conversion (%) |
0 | % | -54 | % | n/a |
Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | ||||||||||||||||
Working capital KPIs, number of days |
2017 | 2017 | 2016 | 2016 | 2016 | |||||||||||||||
Sales outstanding (target: <90) |
114 | 117 | 95 | 122 | 115 | |||||||||||||||
Inventory (target: <65) |
78 | 73 | 69 | 79 | 81 | |||||||||||||||
Payable (target: >60) |
60 | 58 | 56 | 56 | 59 |
9 Ericsson | Second Quarter Report 2017
FINANCIAL POSITION
SEK b. |
Jun 30 2017 |
Jun 30 2016 |
Mar 31 2017 |
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+ Cash and cash equivalents |
21.4 | 28.9 | 33.0 | |||||||||
+ Interest-bearing securities, current |
10.8 | 19.8 | 13.5 | |||||||||
+ Interest-bearing securities, non-current |
22.1 | | 19.1 | |||||||||
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Gross cash |
54.3 | 48.8 | 65.6 | |||||||||
Borrowings, current |
3.2 | 9.7 | 9.5 | |||||||||
Borrowings, non-current |
27.1 | 18.2 | 27.8 | |||||||||
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Net cash |
24.0 | 21.0 | 28.3 | |||||||||
Equity |
123.8 | 136.7 | 126.8 | |||||||||
Total assets |
274.9 | 277.4 | 292.2 | |||||||||
Capital turnover (times) |
1.0 | 1.1 | 1.0 | |||||||||
Return on capital employed (%) |
-14.8 | % | 6.5 | % | -26.2 | % | ||||||
Equity ratio (%) |
45.0 | % | 49.3 | % | 43.4 | % | ||||||
Return on equity (%) |
-18.1 | % | 5.0 | % | -32.8 | % |
10 Ericsson | Second Quarter Report 2017
PARENT COMPANY
11 Ericsson | Second Quarter Report 2017
OTHER INFORMATION
12 Ericsson | Second Quarter Report 2017
RISK FACTORS
13 Ericsson | Second Quarter Report 2017
BOARD ASSURANCE
The Board of Directors and the CEO certify that the financial report for the six months gives a fair view of the performance of the business, position and profit or loss of the Company and the Group, and describes the principal risks and uncertainties that the Company and the companies in the Group face.
Stockholm, July 18, 2017
Telefonaktiebolaget LM Ericsson (publ)
Org. Nr. 556016-0680
Helena Stjernholm |
Leif Johansson | Jacob Wallenberg | ||
Deputy Chairman |
Chairman | Deputy Chairman | ||
Jon Fredrik Baksaas |
Jan Carlson | Nora Denzel | ||
Member of the Board |
Member of the Board | Member of the Board |
Eric A. Elzvik |
Kristin Skogen Lund | |
Member of the Board |
Member of the Board | |
Kristin S. Rinne |
Sukhinder Singh Cassidy | |
Member of the Board |
Member of the Board |
Börje Ekholm |
President, CEO and member of the Board |
Kjell-Åke Soting |
Roger Svensson | Karin Åberg | ||
Member of the Board |
Member of the Board | Member of the Board |
14 Ericsson | Second Quarter Report 2017
EDITORS NOTE
15 Ericsson | Second Quarter Report 2017
SAFE HARBOR STATEMENT
16 Ericsson | Second Quarter Report 2017
FINANCIAL STATEMENTS
AND OTHER INFORMATION
17 Ericsson | Second Quarter Report 2017
Apr-Jun | Jan-Jun | |||||||||||||||||||||||
SEK million |
2017 | 2016 | Change | 2017 | 2016 | Change | ||||||||||||||||||
Net sales |
49,939 | 54,108 | -8 | % | 96,308 | 106,317 | -9 | % | ||||||||||||||||
Cost of sales |
-36,006 | -36,613 | -2 | % | -75,937 | -71,432 | 6 | % | ||||||||||||||||
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Gross income |
13,933 | 17,495 | -20 | % | 20,371 | 34,885 | -42 | % | ||||||||||||||||
Gross margin (%) |
27.9 | % | 32.3 | % | 21.2 | % | 32.8 | % | ||||||||||||||||
Research and development expenses |
-8,365 | -7,405 | 13 | % | -17,433 | -14,890 | 17 | % | ||||||||||||||||
Selling and administrative expenses |
-7,052 | -7,109 | -1 | % | -16,913 | -13,829 | 22 | % | ||||||||||||||||
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Operating expenses |
-15,417 | -14,514 | 6 | % | -34,346 | -28,719 | 20 | % | ||||||||||||||||
Other operating income and expenses |
239 | -230 | 380 | 43 | ||||||||||||||||||||
Shares in earnings of JV and associated companies |
12 | 12 | 23 | 29 | ||||||||||||||||||||
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Operating income |
-1,233 | 2,763 | -145 | % | -13,572 | 6,238 | -318 | % | ||||||||||||||||
Financial income |
-22 | 139 | -104 | 50 | ||||||||||||||||||||
Financial expenses |
83 | -666 | -267 | -1,043 | ||||||||||||||||||||
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Income after financial items |
-1,172 | 2,236 | -152 | % | -13,943 | 5,245 | -366 | % | ||||||||||||||||
Taxes |
176 | -670 | 2,092 | -1,573 | ||||||||||||||||||||
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Net income |
-996 | 1,566 | -164 | % | -11,851 | 3,672 | -423 | % | ||||||||||||||||
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Net income attributable to: |
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Stockholders of the Parent Company |
-1,010 | 1,587 | -11,907 | 3,553 | ||||||||||||||||||||
Non-controlling interests |
14 | -21 | 56 | 119 | ||||||||||||||||||||
Other information |
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Average number of shares, basic (million) |
3,275 | 3,261 | 3,273 | 3,259 | ||||||||||||||||||||
Earnings per share, basic (SEK) 1) |
-0.31 | 0.49 | -3.64 | 1.09 | ||||||||||||||||||||
Earnings per share, diluted (SEK) 1) |
-0.30 | 0.48 | -3.59 | 1.08 | ||||||||||||||||||||
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1) | Based on Net income attributable to stockholders of the Parent Company. |
STATEMENT OF COMPREHENSIVE INCOME
Apr-Jun | Jan-Jun | |||||||||||||||
SEK million |
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net income |
-996 | 1,566 | -11,851 | 3,672 | ||||||||||||
Other comprehensive income |
||||||||||||||||
Items that will not be reclassified to profit or loss |
||||||||||||||||
Remeasurements of defined benefits pension plans incl. asset ceiling |
574 | -941 | 972 | -4,443 | ||||||||||||
Tax on items that will not be reclassified to profit or loss |
-160 | 235 | -329 | 1,188 | ||||||||||||
Items that may be reclassified to profit or loss |
||||||||||||||||
Available-for-sale financial assets |
||||||||||||||||
Gains/losses arising during the period |
41 | | 73 | | ||||||||||||
Reclassification adjustments on gains/losses included in profit or loss |
2 | | 5 | | ||||||||||||
Revaluation of other investments in shares and participations |
||||||||||||||||
Fair value remeasurement |
0 | | 2 | -4 | ||||||||||||
Changes in cumulative translation adjustments |
-2,773 | 1,981 | -2,794 | 848 | ||||||||||||
Share of other comprehensive income on JV and associated companies |
-9 | 10 | 1 | -366 | ||||||||||||
Tax on items that may be reclassified to profit or loss |
-9 | | -18 | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total other comprehensive income, net of tax |
-2,334 | 1,285 | -2,088 | -2,777 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total comprehensive income |
-3,330 | 2,851 | -13,939 | 895 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total comprehensive income attributable to: |
||||||||||||||||
Stockholders of the Parent Company |
-3,305 | 2,843 | -13,979 | 750 | ||||||||||||
Non-controlling interest |
-25 | 8 | 40 | 145 |
18 Ericsson | Second Quarter Report 2017
SEK million |
Jun 30 2017 |
Mar 31 2017 |
Dec 31 2016 |
|||||||||
ASSETS |
||||||||||||
Non-current assets |
||||||||||||
Intangible assets |
||||||||||||
Capitalized development expenses |
6,085 | 6,460 | 8,076 | |||||||||
Goodwill |
41,364 | 43,042 | 43,387 | |||||||||
Intellectual property rights, brands and other intangible assets |
5,234 | 5,869 | 7,747 | |||||||||
Property, plant and equipment |
16,276 | 16,645 | 16,734 | |||||||||
Financial assets |
||||||||||||
Equity in JV and associated companies |
791 | 792 | 775 | |||||||||
Other investments in shares and participations |
1,115 | 1,112 | 1,179 | |||||||||
Customer finance, non-current |
2,288 | 2,728 | 2,128 | |||||||||
Interest-bearing securities, non-current |
22,122 | 19,124 | 7,586 | |||||||||
Other financial assets, non-current |
4,409 | 4,466 | 4,442 | |||||||||
Deferred tax assets |
17,463 | 17,435 | 15,522 | |||||||||
|
|
|
|
|
|
|||||||
117,147 | 117,673 | 107,576 | ||||||||||
Current assets |
||||||||||||
Inventories |
34,194 | 33,938 | 30,307 | |||||||||
Trade receivables |
62,493 | 65,687 | 68,117 | |||||||||
Customer finance, current |
2,156 | 2,882 | 2,625 | |||||||||
Other current receivables |
26,741 | 25,525 | 24,431 | |||||||||
Interest-bearing securities, current |
10,754 | 13,548 | 13,325 | |||||||||
Cash and cash equivalents |
21,446 | 32,954 | 36,966 | |||||||||
|
|
|
|
|
|
|||||||
157,784 | 174,534 | 175,771 | ||||||||||
|
|
|
|
|
|
|||||||
Total assets |
274,931 | 292,207 | 283,347 | |||||||||
|
|
|
|
|
|
|||||||
EQUITY AND LIABILITIES |
||||||||||||
Equity |
||||||||||||
Stockholders equity |
123,045 | 126,105 | 139,817 | |||||||||
Non-controlling interest in equity of subsidiaries |
710 | 736 | 675 | |||||||||
|
|
|
|
|
|
|||||||
123,755 | 126,841 | 140,492 | ||||||||||
Noncurrent liabilities |
||||||||||||
Post-employment benefits |
23,624 | 23,774 | 23,723 | |||||||||
Provisions, non-current |
4,794 | 4,867 | 946 | |||||||||
Deferred tax liabilities |
1,838 | 1,888 | 2,147 | |||||||||
Borrowings, non-current |
27,100 | 27,823 | 18,653 | |||||||||
Other non-current liabilities |
2,602 | 2,699 | 2,621 | |||||||||
|
|
|
|
|
|
|||||||
59,958 | 61,051 | 48,090 | ||||||||||
Current liabilities |
||||||||||||
Provisions, current |
5,618 | 5,694 | 5,411 | |||||||||
Borrowings, current |
3,230 | 9,514 | 8,033 | |||||||||
Trade payables |
25,025 | 25,814 | 25,318 | |||||||||
Other current liabilities |
57,345 | 63,293 | 56,003 | |||||||||
|
|
|
|
|
|
|||||||
91,218 | 104,315 | 94,765 | ||||||||||
|
|
|
|
|
|
|||||||
Total equity and liabilities |
274,931 | 292,207 | 283,347 | |||||||||
|
|
|
|
|
|
|||||||
Of which interest-bearing liabilities |
30,330 | 37,337 | 26,686 | |||||||||
Assets pledged as collateral |
5,076 | 3,064 | 2,584 | |||||||||
Contingent liabilities |
1,679 | 1,729 | 1,186 |
19 Ericsson | Second Quarter Report 2017
CONSOLIDATED STATEMENT OF CASH FLOWS
Apr-Jun | Jan-Jun | Jan-Dec | ||||||||||||||||||
SEK million |
2017 | 2016 | 2017 | 2016 | 2016 | |||||||||||||||
Operating activities |
||||||||||||||||||||
Net income |
-996 | 1,566 | -11,851 | 3,672 | 1,895 | |||||||||||||||
Adjustments to reconcile net income to cash |
||||||||||||||||||||
Taxes |
-1,978 | -3,410 | -6,323 | -4,618 | -6,200 | |||||||||||||||
Earnings/dividends in JV and associated companies |
-8 | 73 | -15 | 57 | 58 | |||||||||||||||
Depreciation, amortization and impairment losses |
2,197 | 2,104 | 7,628 | 4,201 | 9,119 | |||||||||||||||
Other |
-48 | 988 | 479 | 1,640 | 3,135 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income reconciled to cash |
-833 | 1,321 | -10,082 | 4,952 | 8,007 | |||||||||||||||
Changes in operating net assets |
||||||||||||||||||||
Inventories |
-1,146 | -1,667 | -4,731 | -5,879 | -613 | |||||||||||||||
Customer finance, current and non-current |
1,140 | -816 | 306 | -1,067 | -950 | |||||||||||||||
Trade receivables |
450 | -564 | 2,847 | 2,844 | 5,933 | |||||||||||||||
Trade payables |
41 | 2,457 | 667 | 1,840 | 2,775 | |||||||||||||||
Provisions and post-employment benefits |
324 | 218 | 4,969 | 204 | 3,106 | |||||||||||||||
Other operating assets and liabilities, net |
25 | -1,662 | 4,484 | -5,979 | -4,248 | |||||||||||||||
834 | -2,034 | 8,542 | -8,037 | 6,003 | ||||||||||||||||
Cash flow from operating activities |
1 | -713 | -1,540 | -3,085 | 14,010 | |||||||||||||||
Investing activities |
||||||||||||||||||||
Investments in property, plant and equipment |
-1,018 | -1,572 | -2,033 | -3,046 | -6,129 | |||||||||||||||
Sales of property, plant and equipment |
37 | 50 | 106 | 94 | 482 | |||||||||||||||
Acquisitions/divestments of subsidiaries and other operations, net |
9 | -480 | 12 | -588 | -622 | |||||||||||||||
Product development |
-315 | -1,099 | -1,180 | -2,307 | -4,483 | |||||||||||||||
Other investing activities |
-42 | -890 | 68 | -155 | -3,004 | |||||||||||||||
Interest-bearing securities |
-676 | 5,355 | -12,562 | 6,368 | 5,473 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Cash flow from investing activities |
-2,005 | 1,364 | -15,589 | 366 | -8,283 | |||||||||||||||
Cash flow before financing activities |
-2,004 | 651 | -17,129 | -2,719 | 5,727 | |||||||||||||||
Financing activities |
||||||||||||||||||||
Dividends paid |
-3,274 | -12,067 | -3,278 | -12,100 | -12,263 | |||||||||||||||
Other financing activities |
-5,636 | 2,761 | 5,266 | 2,855 | 521 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Cash flow from financing activities |
-8,910 | -9,306 | 1,988 | -9,245 | -11,742 | |||||||||||||||
Effect of exchange rate changes on cash |
-594 | 1,652 | -379 | 671 | 2,757 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net change in cash and cash equivalents |
-11,508 | -7,003 | -15,520 | -11,293 | -3,258 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Cash and cash equivalents, beginning of period |
32,954 | 35,934 | 36,966 | 40,224 | 40,224 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Cash and cash equivalents, end of period |
21,446 | 28,931 | 21,446 | 28,931 | 36,966 |
20 Ericsson | Second Quarter Report 2017
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Jan-Jun | Jan-Dec | |||||||||||
SEK million |
2017 | 2016 | 2016 | |||||||||
Opening balance |
140,492 | 147,366 | 147,366 | |||||||||
Total comprehensive income |
-13,939 | 895 | 4,514 | |||||||||
Sale/repurchase of own shares |
34 | -74 | -216 | |||||||||
Stock issue (net) |
15 | 131 | 131 | |||||||||
Stock purchase plan |
431 | 472 | 957 | |||||||||
Dividends paid |
-3,278 | -12,099 | -12,263 | |||||||||
Transactions with non-controlling interests |
| | 3 | |||||||||
|
|
|
|
|
|
|||||||
Closing balance |
123,755 | 136,691 | 140,492 | |||||||||
|
|
|
|
|
|
CONSOLIDATED INCOME STATEMENT - ISOLATED QUARTERS
2017 | 2016 | |||||||||||||||||||||||
Isolated quarters, SEK million |
Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||
Net sales |
49,939 | 46,369 | 65,215 | 51,076 | 54,108 | 52,209 | ||||||||||||||||||
Cost of sales |
-36,006 | -39,931 | -48,195 | -36,616 | -36,613 | -34,819 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Gross income |
13,933 | 6,438 | 17,020 | 14,460 | 17,495 | 17,390 | ||||||||||||||||||
Gross margin (%) |
27,9 | % | 13.9 | % | 26.1 | % | 28.3 | % | 32.3 | % | 33.3 | % | ||||||||||||
Research and development expenses |
-8,365 | -9,068 | -8,890 | -7,855 | -7,405 | -7,485 | ||||||||||||||||||
Selling and administrative expenses |
-7,052 | -9,861 | -8,799 | -6,238 | -7,109 | -6,720 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating expenses |
-15,417 | -18,929 | -17,689 | -14,093 | -14,514 | -14,205 | ||||||||||||||||||
Other operating income and expenses |
239 | 141 | 364 | -3 | -230 | 273 | ||||||||||||||||||
Shares in earnings of JV and associated companies |
12 | 11 | 25 | -23 | 12 | 17 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating income |
-1,233 | -12,339 | -280 | 341 | 2,763 | 3,475 | ||||||||||||||||||
Financial income |
-22 | -82 | 61 | -226 | 139 | -89 | ||||||||||||||||||
Financial expenses |
83 | -350 | -744 | -371 | -666 | -377 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Income after financial items |
-1,172 | -12,771 | -963 | -256 | 2,236 | 3,009 | ||||||||||||||||||
Taxes |
176 | 1,916 | -634 | 76 | -670 | -903 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income |
-996 | -10,855 | -1,597 | -180 | 1,566 | 2,106 | ||||||||||||||||||
Net income attributable to: |
||||||||||||||||||||||||
Stockholders of the Parent Company |
-1,010 | -10,897 | -1,604 | -233 | 1,587 | 1,966 | ||||||||||||||||||
Non-controlling interests |
14 | 42 | 7 | 53 | -21 | 140 | ||||||||||||||||||
Other information |
||||||||||||||||||||||||
Average number of shares, basic (million) |
3,275 | 3,272 | 3,268 | 3,264 | 3,261 | 3,258 | ||||||||||||||||||
Earnings per share, basic (SEK) 1) |
-0.31 | -3.33 | -0.49 | -0.07 | 0.49 | 0.60 | ||||||||||||||||||
Earnings per share, diluted (SEK) 1) |
-0.30 | -3.29 | -0.48 | -0.07 | 0.48 | 0.60 |
1) | Based on Net income attributable to stockholders of the Parent Company. |
21 Ericsson | Second Quarter Report 2017
CONSOLIDATED STATEMENT OF CASH FLOWS - ISOLATED QUARTERS
2017 | 2016 | |||||||||||||||||||||||
Isolated quarters, SEK million |
Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||
Operating activities |
||||||||||||||||||||||||
Net income |
-996 | -10,855 | -1,597 | -180 | 1,566 | 2,106 | ||||||||||||||||||
Adjustments to reconcile net income to cash |
||||||||||||||||||||||||
Taxes |
-1,978 | -4,345 | -300 | -1,282 | -3,410 | -1,208 | ||||||||||||||||||
Earnings/dividends in JV and associated companies |
-8 | -7 | -21 | 22 | 73 | -16 | ||||||||||||||||||
Depreciation, amortization and impairment losses |
2,197 | 5,431 | 2,610 | 2,308 | 2,104 | 2,097 | ||||||||||||||||||
Other |
-48 | 527 | 865 | 630 | 988 | 652 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income reconciled to cash |
-833 | -9,249 | 1,557 | 1,498 | 1,321 | 3,631 | ||||||||||||||||||
Changes in operating net assets |
||||||||||||||||||||||||
Inventories |
-1,146 | -3,585 | 4,286 | 980 | -1,667 | -4,212 | ||||||||||||||||||
Customer finance, current and non-current |
1,140 | -834 | -106 | 223 | -816 | -251 | ||||||||||||||||||
Trade receivables |
450 | 2,397 | 3,713 | -624 | -564 | 3,408 | ||||||||||||||||||
Trade payables |
41 | 626 | 3,306 | -2,371 | 2,457 | -617 | ||||||||||||||||||
Provisions and post-employment benefits |
324 | 4,645 | 2,772 | 130 | 218 | -14 | ||||||||||||||||||
Other operating assets and liabilities, net |
25 | 4,459 | 3,884 | -2,153 | -1,662 | -4,317 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
834 | 7,708 | 17,855 | -3,815 | -2,034 | -6,003 | |||||||||||||||||||
Cash flow from operating activities |
1 | -1,541 | 19,412 | -2,317 | -713 | -2,372 | ||||||||||||||||||
Investing activities |
||||||||||||||||||||||||
Investments in property, plant and equipment |
-1,018 | -1,015 | -1,699 | -1,384 | -1,572 | -1,474 | ||||||||||||||||||
Sales of property, plant and equipment |
37 | 69 | 277 | 111 | 50 | 44 | ||||||||||||||||||
Acquisitions/divestments of subsidiaries and other operations, net |
9 | 3 | -50 | 16 | -480 | -108 | ||||||||||||||||||
Product development |
-315 | -865 | -1,291 | -885 | -1,099 | -1,208 | ||||||||||||||||||
Other investing activities |
-42 | 110 | -2,341 | -508 | -890 | 735 | ||||||||||||||||||
Interest-bearing securities |
-676 | -11,886 | -1,505 | 610 | 5,355 | 1,013 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Cash flow from investing activities |
-2,005 | -13,584 | -6,609 | -2,040 | 1,364 | -998 | ||||||||||||||||||
Cash flow before financing activities |
-2,004 | -15,125 | 12,803 | -4,357 | 651 | -3,370 | ||||||||||||||||||
Financing activities |
||||||||||||||||||||||||
Dividends paid |
-3,274 | -4 | | -163 | -12,067 | -33 | ||||||||||||||||||
Other financing activities |
-5,636 | 10,902 | -1,039 | -1,295 | 2,761 | 94 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Cash flow from financing activities |
-8,910 | 10,898 | -1,039 | -1,458 | -9,306 | 61 | ||||||||||||||||||
Effect of exchange rate changes on cash |
-594 | 215 | 801 | 1,285 | 1,652 | -981 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net change in cash and cash equivalents |
-11,508 | -4,012 | 12,565 | -4,530 | -7,003 | -4,290 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Cash and cash equivalents, beginning of period |
32,954 | 36,966 | 24,401 | 28,931 | 35,934 | 40,224 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Cash and cash equivalents, end of period |
21,446 | 32,954 | 36,966 | 24,401 | 28,931 | 35,934 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
22 Ericsson | Second Quarter Report 2017
PARENT COMPANY INCOME STATEMENT
Apr-Jun | Jan-Jun | Jan-Dec | ||||||||||||||||||
SEK million |
2017 | 2016 | 2017 | 2016 | 2016 | |||||||||||||||
Net sales |
| | | | | |||||||||||||||
Cost of sales |
| | | | | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Gross income |
| | | | | |||||||||||||||
Operating expenses |
-355 | -267 | -644 | -490 | -1,185 | |||||||||||||||
Other operating income and expenses |
618 | 616 | 1,190 | 1,190 | 2,698 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Operating income |
263 | 349 | 546 | 700 | 1,513 | |||||||||||||||
Financial net |
2,040 | 12,496 | 1,709 | 12,507 | 14,039 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income after financial items |
2,303 | 12,845 | 2,255 | 13,207 | 15,552 | |||||||||||||||
Transfers to () / from untaxed reserves |
-120 | | -120 | | -1,100 | |||||||||||||||
Taxes |
22 | -89 | 12 | -134 | -206 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income |
2,205 | 12,756 | 2,147 | 13,073 | 14,246 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
PARENT COMPANY STATEMENT OF COMPREHENSIVE INCOME
Apr-Jun | Jan-Jun | Jan-Dec | ||||||||||||||||||
SEK million |
2017 | 2016 | 2017 | 2016 | 2016 | |||||||||||||||
Net income |
2,205 | 12,756 | 2,147 | 13,073 | 14,246 | |||||||||||||||
Available-for-sale financial assets |
||||||||||||||||||||
Gains/losses arising during the period |
41 | | 73 | | -7 | |||||||||||||||
Reclassification adjustments on gains/losses included in profit or loss |
2 | | 5 | | | |||||||||||||||
Revaluation of other investments in shares and participations |
||||||||||||||||||||
Fair value remeasurement |
| | | -5 | -5 | |||||||||||||||
Tax on items that may be reclassified to profit or loss |
-9 | | -17 | | | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total other comprehensive income, net of tax |
34 | | 61 | -5 | -12 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total comprehensive income |
2,239 | 12,756 | 2,208 | 13,068 | 14,234 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
23 Ericsson | Second Quarter Report 2017
SEK million |
Jun 30 2017 |
Dec 31 2016 |
||||||
ASSETS |
||||||||
Fixed assets |
||||||||
Intangible assets |
434 | 547 | ||||||
Tangible assets |
435 | 396 | ||||||
Financial assets* |
125,614 | 111,981 | ||||||
|
|
|
|
|||||
126,483 | 112,924 | |||||||
Current assets |
||||||||
Inventories |
1 | 3 | ||||||
Receivables |
33,685 | 38,476 | ||||||
Short-term investments |
10,414 | 12,991 | ||||||
Cash and cash equivalents |
8,598 | 22,311 | ||||||
|
|
|
|
|||||
52,698 | 73,781 | |||||||
|
|
|
|
|||||
Total assets |
179,181 | 186,705 | ||||||
|
|
|
|
|||||
STOCKHOLDERS EQUITY, PROVISIONS AND LIABILITIES |
||||||||
Equity |
||||||||
Restricted equity |
48,164 | 48,148 | ||||||
Non-restricted equity |
43,712 | 44,753 | ||||||
|
|
|
|
|||||
91,876 | 92,901 | |||||||
Provisions |
656 | 885 | ||||||
Non-current liabilities |
58,857 | 50,428 | ||||||
Current liabilities |
27,792 | 42,491 | ||||||
|
|
|
|
|||||
Total stockholders equity, provisions and liabilities |
179,181 | 186,705 | ||||||
|
|
|
|
|||||
* Of which interest-bearing securities, non-current |
22,122 | 7,586 | ||||||
|
|
|
|
24 Ericsson | Second Quarter Report 2017
THE GROUP
25 Ericsson | Second Quarter Report 2017
NET SALES BY SEGMENT BY QUARTER*
2017 | 2016 | |||||||||||||||||||||||
Isolated quarters, SEK million |
Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||
Networks |
36,839 | 34,860 | 47,791 | 37,020 | 40,245 | 39,935 | ||||||||||||||||||
Of which products |
20,786 | 19,410 | 27,519 | 19,249 | 23,037 | 22,795 | ||||||||||||||||||
Of which services |
16,053 | 15,450 | 20,272 | 17,771 | 17,208 | 17,140 | ||||||||||||||||||
IT & Cloud |
10,888 | 9,545 | 14,884 | 11,716 | 11,500 | 9,830 | ||||||||||||||||||
Of which products |
5,065 | 4,103 | 6,682 | 5,479 | 5,298 | 4,773 | ||||||||||||||||||
Of which services |
5,823 | 5,442 | 8,202 | 6,237 | 6,202 | 5,057 | ||||||||||||||||||
Other |
2,212 | 1,964 | 2,540 | 2,340 | 2,363 | 2,444 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
49,939 | 46,369 | 65,215 | 51,076 | 54,108 | 52,209 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
2017 | 2016 | |||||||||||||||||||||||
Sequential change, percent |
Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||
Networks |
6 | % | -27 | % | 29 | % | -8 | % | 1 | % | | |||||||||||||
Of which products |
7 | % | -29 | % | 43 | % | -16 | % | 1 | % | | |||||||||||||
Of which services |
4 | % | -24 | % | 14 | % | 3 | % | 0 | % | | |||||||||||||
IT & Cloud |
14 | % | -36 | % | 27 | % | 2 | % | 17 | % | | |||||||||||||
Of which products |
23 | % | -39 | % | 22 | % | 3 | % | 11 | % | | |||||||||||||
Of which services |
7 | % | -34 | % | 32 | % | 1 | % | 23 | % | | |||||||||||||
Other |
13 | % | -23 | % | 9 | % | -1 | % | -3 | % | | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
8 | % | -29 | % | 28 | % | -6 | % | 4 | % | -29 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
2017 | 2016 | |||||||||||||||||||||||
Year over year change, percent |
Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||
Networks |
-8 | % | -13 | % | | | | | ||||||||||||||||
Of which products |
-10 | % | -15 | % | | | | | ||||||||||||||||
Of which services |
-7 | % | -10 | % | | | | | ||||||||||||||||
IT & Cloud |
-5 | % | -3 | % | | | | | ||||||||||||||||
Of which products |
-4 | % | -14 | % | | | | | ||||||||||||||||
Of which services |
-6 | % | 8 | % | | | | | ||||||||||||||||
Other |
-6 | % | -20 | % | | | | | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
-8 | % | -11 | % | -11 | % | -14 | % | -11 | % | -2 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
2017 | 2016 | |||||||||||||||||||||||
Year to date, SEK million |
Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | ||||||||||||||||||
Networks |
71,699 | 34,860 | 164,991 | 117,200 | 80,180 | 39,935 | ||||||||||||||||||
Of which products |
40,196 | 19,410 | 92,600 | 65,081 | 45,832 | 22,795 | ||||||||||||||||||
Of which services |
31,503 | 15,450 | 72,391 | 52,119 | 34,348 | 17,140 | ||||||||||||||||||
IT & Cloud |
20,433 | 9,545 | 47,930 | 33,046 | 21,330 | 9,830 | ||||||||||||||||||
Of which products |
9,168 | 4,103 | 22,232 | 15,550 | 10,071 | 4,773 | ||||||||||||||||||
Of which services |
11,265 | 5,442 | 25,698 | 17,496 | 11,259 | 5,057 | ||||||||||||||||||
Other |
4,176 | 1,964 | 9,687 | 7,147 | 4,807 | 2,444 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
96,308 | 46,369 | 222,608 | 157,393 | 106,317 | 52,209 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
2017 | 2016 | |||||||||||||||||||||||
Year to date, year over year change, percent |
Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | ||||||||||||||||||
Networks |
-11 | % | -13 | % | -11 | % | | | | |||||||||||||||
Of which products |
-12 | % | -15 | % | -12 | % | | | | |||||||||||||||
Of which services |
-8 | % | -10 | % | -8 | % | | | | |||||||||||||||
IT & Cloud |
-4 | % | -3 | % | -7 | % | | | | |||||||||||||||
Of which products |
-9 | % | -14 | % | -16 | % | | | | |||||||||||||||
Of which services |
0 | % | 8 | % | 1 | % | | | | |||||||||||||||
Other |
-13 | % | -20 | % | -7 | % | | | | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
-9 | % | -11 | % | -10 | % | -9 | % | -7 | % | -2 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
* | Net sales by segment has been restated for each quarter of 2016 and for the full year 2015. Comparisons against isolated quarters in 2015 are not available by segment. As of Q2 2017, the former Media segment was renamed to Other. |
26 Ericsson | Second Quarter Report 2017
SALES GROWTH ADJUSTED FOR COMPARABLE UNITS AND CURRENCY*
2017 | 2016 | |||||||||||||||||||||||
Sequential change, percent |
Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||
Networks |
7 | % | -27 | % | | | | | ||||||||||||||||
IT & Cloud |
16 | % | -35 | % | | | | | ||||||||||||||||
Other |
13 | % | -23 | % | | | | | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
9 | % | -29 | % | 23 | % | -9 | % | 6 | % | -28 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
2017 | 2016 | |||||||||||||||||||||||
Isolated quarter, year over year change, percent |
Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||
Networks |
-14 | % | -18 | % | | | | | ||||||||||||||||
IT & Cloud |
-10 | % | -7 | % | | | | | ||||||||||||||||
Other |
-11 | % | -22 | % | | | | | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
-13 | % | -16 | % | -15 | % | -14 | % | -7 | % | -1 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
2017 | 2016 | |||||||||||||||||||||||
Year to date, year over year change, percent |
Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | ||||||||||||||||||
Networks |
-16 | % | -18 | % | | | | | ||||||||||||||||
IT & Cloud |
-8 | % | -7 | % | | | | | ||||||||||||||||
Other |
-17 | % | -22 | % | | | | | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
-15 | % | -16 | % | -10 | % | -8 | % | -4 | % | -1 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
* | Sales growth adjusted for comparable units and currency has not been restated by segment for 2016. |
GROSS INCOME AND GROSS MARGIN BY SEGMENT BY QUARTER
2017 | 2016 | |||||||||||||||||||||||
Isolated quarters, SEK million |
Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||
Networks |
10,357 | 7,980 | 11,783 | 9,867 | 12,522 | 13,011 | ||||||||||||||||||
IT & Cloud |
2,828 | -2,100 | 4,676 | 3,833 | 4,061 | 3,281 | ||||||||||||||||||
Other |
748 | 558 | 561 | 760 | 912 | 1,098 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
13,933 | 6,438 | 17,020 | 14,460 | 17,495 | 17,390 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
2017 | 2016 | |||||||||||||||||||||||
Isolated quarters, As percentage of net sales |
Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||
Networks |
28 | % | 23 | % | 25 | % | 27 | % | 31 | % | 33 | % | ||||||||||||
IT & Cloud |
26 | % | -22 | % | 31 | % | 33 | % | 35 | % | 33 | % | ||||||||||||
Other |
34 | % | 28 | % | 22 | % | 32 | % | 39 | % | 45 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
28 | % | 14 | % | 26 | % | 28 | % | 32 | % | 33 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
2017 | 2016 | |||||||||||||||||||||||
Year to date, SEK million |
Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | ||||||||||||||||||
Networks |
18,337 | 7,980 | 47,183 | 35,400 | 25,533 | 13,011 | ||||||||||||||||||
IT & Cloud |
728 | -2,100 | 15,851 | 11,175 | 7,342 | 3,281 | ||||||||||||||||||
Other |
1,306 | 558 | 3,331 | 2,770 | 2,010 | 1,098 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
20,371 | 6,438 | 66,365 | 49,345 | 34,885 | 17,390 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
2017 | 2016 | |||||||||||||||||||||||
Year to date, As percentage of net sales |
Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | ||||||||||||||||||
Networks |
26 | % | 23 | % | 29 | % | 30 | % | 32 | % | 33 | % | ||||||||||||
IT & Cloud |
4 | % | -22 | % | 33 | % | 34 | % | 34 | % | 33 | % | ||||||||||||
Other |
31 | % | 28 | % | 34 | % | 39 | % | 42 | % | 45 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
21 | % | 14 | % | 30 | % | 31 | % | 33 | % | 33 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
27 Ericsson | Second Quarter Report 2017
OPERATING INCOME AND OPERATING MARGIN BY SEGMENT BY QUARTER
2017 | 2016 | |||||||||||||||||||||||
Isolated quarters, SEK million |
Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||
Networks |
2,603 | -538 | 2,380 | 2,839 | 4,789 | 5,762 | ||||||||||||||||||
IT & Cloud |
-2,869 | -8,997 | -1,819 | -1,740 | -1,546 | -1,977 | ||||||||||||||||||
Other |
-967 | -2,804 | -841 | -758 | -480 | -310 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
-1,233 | -12,339 | -280 | 341 | 2,763 | 3,475 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
2017 | 2016 | |||||||||||||||||||||||
Isolated quarters, As percentage of net sales |
Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||
Networks |
7 | % | -2 | % | 5 | % | 8 | % | 12 | % | 14 | % | ||||||||||||
IT & Cloud |
-26 | % | -94 | % | -12 | % | -15 | % | -13 | % | -20 | % | ||||||||||||
Other |
-44 | % | -143 | % | -33 | % | -32 | % | -20 | % | -13 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
-2 | % | -27 | % | 0 | % | 1 | % | 5 | % | 7 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
2017 | 2016 | |||||||||||||||||||||||
Year to date, SEK million |
Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | ||||||||||||||||||
Networks |
2,065 | -538 | 15,770 | 13,390 | 10,551 | 5,762 | ||||||||||||||||||
IT & Cloud |
-11,866 | -8,997 | -7,082 | -5,263 | -3,523 | -1,977 | ||||||||||||||||||
Other |
-3,771 | -2,804 | -2,389 | -1,548 | -790 | -310 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
-13,572 | -12,339 | 6,299 | 6,579 | 6,238 | 3,475 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
2017 | 2016 | |||||||||||||||||||||||
Year to date As percentage of net sales |
Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | ||||||||||||||||||
Networks |
3 | % | -2 | % | 10 | % | 11 | % | 13 | % | 14 | % | ||||||||||||
IT & Cloud |
-58 | % | -94 | % | -15 | % | -16 | % | -17 | % | -20 | % | ||||||||||||
Other |
-90 | % | -143 | % | -25 | % | -22 | % | -16 | % | -13 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
-14 | % | -27 | % | 3 | % | 4 | % | 6 | % | 7 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
BY SEGMENT BY QUARTER
2017 | 2016 | |||||||||||||||||||||||
Isolated quarters, SEK million |
Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||
Networks |
2,687 | -353 | 2,586 | 3,042 | 4,994 | 5,970 | ||||||||||||||||||
IT & Cloud |
-2,640 | -8,237 | -1,571 | -1,443 | -1,306 | -1,713 | ||||||||||||||||||
Other |
-835 | -1,874 | -655 | -567 | -290 | -98 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
-788 | -10,464 | 360 | 1,032 | 3,398 | 4,159 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
2017 | 2016 | |||||||||||||||||||||||
Isolated quarters As percentage of net sales |
Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||
Networks |
7 | % | -1 | % | 5 | % | 8 | % | 12 | % | 15 | % | ||||||||||||
IT & Cloud |
-24 | % | -86 | % | -11 | % | -12 | % | -11 | % | -17 | % | ||||||||||||
Other |
-38 | % | -95 | % | -26 | % | -24 | % | -12 | % | -4 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
-2 | % | -23 | % | 1 | % | 2 | % | 6 | % | 8 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
2017 | 2016 | |||||||||||||||||||||||
Year to date, SEK million |
Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | ||||||||||||||||||
Networks |
2,334 | -353 | 16,592 | 14,006 | 10,964 | 5,970 | ||||||||||||||||||
IT & Cloud |
-10,877 | -8,237 | -6,033 | -4,462 | -3,019 | -1,713 | ||||||||||||||||||
Other |
-2,709 | -1,874 | -1,610 | -955 | -388 | -98 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
-11,252 | -10,464 | 8,949 | 8,589 | 7,557 | 4,159 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
2017 | 2016 | |||||||||||||||||||||||
Year to date As a percentage of net sales |
Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | ||||||||||||||||||
Networks |
3 | % | -1 | % | 10 | % | 12 | % | 14 | % | 15 | % | ||||||||||||
IT & Cloud |
-53 | % | -86 | % | -13 | % | -14 | % | -14 | % | -17 | % | ||||||||||||
Other |
-65 | % | -95 | % | -17 | % | -13 | % | -8 | % | -4 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
-12 | % | -23 | % | 4 | % | 5 | % | 7 | % | 8 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
28 Ericsson | Second Quarter Report 2017
NET SALES BY MARKET AREA BY QUARTER*
2017 | 2016 | |||||||||||||||||||||||
Isolated quarters, SEK million |
Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||
South East Asia, Oceania and India |
7,730 | 8,009 | 9,718 | 7,678 | 7,730 | 7,905 | ||||||||||||||||||
North East Asia |
5,853 | 5,561 | 9,623 | 6,122 | 6,041 | 5,579 | ||||||||||||||||||
North America |
12,457 | 11,811 | 14,851 | 13,178 | 13,358 | 13,147 | ||||||||||||||||||
Europe and Latin America 1) 2) |
15,231 | 12,707 | 19,128 | 15,104 | 17,082 | 15,100 | ||||||||||||||||||
Middle East and Africa |
6,018 | 5,414 | 9,129 | 6,298 | 7,239 | 5,699 | ||||||||||||||||||
Other 1) 2) |
2,650 | 2,867 | 2,766 | 2,696 | 2,658 | 4,779 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
49,939 | 46,369 | 65,215 | 51,076 | 54,108 | 52,209 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
1) Of which in Sweden |
701 | 925 | 843 | 690 | 477 | 1,113 | ||||||||||||||||||
2) Of which in EU |
8,840 | 8,239 | 11,154 | 8,507 | 9,635 | 9,229 | ||||||||||||||||||
2017 | 2016 | |||||||||||||||||||||||
Sequential change, percent |
Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||
South East Asia, Oceania and India |
-3 | % | -18 | % | 27 | % | -1 | % | -2 | % | -7 | % | ||||||||||||
North East Asia |
5 | % | -42 | % | 57 | % | 1 | % | 8 | % | -37 | % | ||||||||||||
North America |
5 | % | -20 | % | 13 | % | -1 | % | 2 | % | -21 | % | ||||||||||||
Europe and Latin America 1) 2) |
20 | % | -34 | % | 27 | % | -12 | % | 13 | % | -31 | % | ||||||||||||
Middle East and Africa |
11 | % | -41 | % | 45 | % | -13 | % | 27 | % | -36 | % | ||||||||||||
Other 1) 2) |
-8 | % | 4 | % | 3 | % | 1 | % | -44 | % | -44 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
8 | % | -29 | % | 28 | % | -6 | % | 4 | % | -29 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
1) Of which in Sweden |
-24 | % | 10 | % | 22 | % | 45 | % | -57 | % | 15 | % | ||||||||||||
2) Of which in EU |
7 | % | -26 | % | 31 | % | -12 | % | 4 | % | -27 | % | ||||||||||||
2017 | 2016 | |||||||||||||||||||||||
Year-over-year change, percent |
Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||
South East Asia, Oceania and India |
0 | % | 1 | % | 14 | % | -9 | % | -3 | % | 1 | % | ||||||||||||
North East Asia |
-3 | % | 0 | % | 8 | % | -4 | % | -13 | % | -7 | % | ||||||||||||
North America |
-7 | % | -10 | % | -11 | % | -8 | % | -8 | % | 8 | % | ||||||||||||
Europe and Latin America 1) 2) |
-11 | % | -16 | % | -13 | % | -20 | % | -12 | % | -15 | % | ||||||||||||
Middle East and Africa |
-17 | % | -5 | % | 2 | % | -25 | % | -21 | % | -15 | % | ||||||||||||
Other 1) 2) |
0 | % | -40 | % | -67 | % | -6 | % | -3 | % | 54 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
-8 | % | -11 | % | -11 | % | -14 | % | -11 | % | -2 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
1) Of which in Sweden |
47 | % | -17 | % | -13 | % | -39 | % | -20 | % | 2 | % | ||||||||||||
2) Of which in EU |
-8 | % | -11 | % | -12 | % | -20 | % | -16 | % | -15 | % | ||||||||||||
2017 | 2016 | |||||||||||||||||||||||
Year to date, SEK million |
Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | ||||||||||||||||||
South East Asia, Oceania and India |
15,739 | 8,009 | 33,031 | 23,313 | 15,635 | 7,905 | ||||||||||||||||||
North East Asia |
11,414 | 5,561 | 27,365 | 17,742 | 11,620 | 5,579 | ||||||||||||||||||
North America |
24,268 | 11,811 | 54,534 | 39,683 | 26,505 | 13,147 | ||||||||||||||||||
Europe and Latin America 1) 2) |
27,938 | 12,707 | 66,414 | 47,286 | 32,182 | 15,100 | ||||||||||||||||||
Middle East and Africa |
11,432 | 5,414 | 28,365 | 19,236 | 12,938 | 5,699 | ||||||||||||||||||
Other 1) 2) |
5,517 | 2,867 | 12,899 | 10,133 | 7,437 | 4,779 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
96,308 | 46,369 | 222,608 | 157,393 | 106,317 | 52,209 | ||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|||||||||||||
1) Of which in Sweden |
1,626 | 925 | 3,123 | 2,280 | 1,590 | 1,113 | ||||||||||||||||||
2) Of which in EU |
17,079 | 8,239 | 38,525 | 27,371 | 18,864 | 9,229 | ||||||||||||||||||
2017 | 2016 | |||||||||||||||||||||||
Year to date, year-over-year change, percent |
Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | ||||||||||||||||||
South East Asia, Oceania and India |
1 | % | 1 | % | 1 | % | -4 | % | -1 | % | 1 | % | ||||||||||||
North East Asia |
-2 | % | 0 | % | -3 | % | -8 | % | -10 | % | -7 | % | ||||||||||||
North America |
-8 | % | -10 | % | -6 | % | -3 | % | -1 | % | 8 | % | ||||||||||||
Europe and Latin America 1) 2) |
-13 | % | -16 | % | -15 | % | -15 | % | -13 | % | -15 | % | ||||||||||||
Middle East and Africa |
-12 | % | -5 | % | -15 | % | -21 | % | -18 | % | -15 | % | ||||||||||||
Other 1) 2) |
-26 | % | -40 | % | -25 | % | 16 | % | 27 | % | 54 | % | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
-9 | % | -11 | % | -10 | % | -9 | % | -7 | % | -2 | % | ||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
1) Of which in Sweden |
2 | % | -17 | % | -18 | % | -19 | % | -6 | % | 2 | % | ||||||||||||
2) Of which in EU |
-9 | % | -11 | % | -15 | % | -17 | % | -16 | % | -15 | % |
* | As of Q2 2017, net sales by geographical area has been restated using the new structure of five Market Areas + Other, replacing the previous structure of 10 regions + Other. Broadcast services, reported as Region Other during 2016, is now reported per geographical area. In addition, part of the business related to former Telcordia, reported per geographical area during 2016, has been transferred to Other. All changes have been applied retrospectively to ensure valid comparisons between periods. |
29 Ericsson | Second Quarter Report 2017
Country | Q2 | Jan-Jun | ||||||||||||||
Percentage of Net sales |
2017 | 2016 | 2017 | 2016 | ||||||||||||
United States |
26 | % | 26 | % | 26 | % | 26 | % | ||||||||
China |
9 | % | 8 | % | 8 | % | 9 | % | ||||||||
India |
4 | % | 5 | % | 5 | % | 5 | % | ||||||||
Australia |
4 | % | 3 | % | 4 | % | 2 | % | ||||||||
Japan |
3 | % | 2 | % | 4 | % | 3 | % |
NET SALES BY MARKET AREA BY SEGMENT
Q2 2017 | Jan-Jun 2017 | |||||||||||||||||||||||||||||||
SEK million |
Networks | IT & Cloud | Other | Total | Networks | IT & Cloud | Other | Total | ||||||||||||||||||||||||
South East Asia, Oceania and India |
6,292 | 1,319 | 119 | 7,730 | 12,945 | 2,597 | 197 | 15,739 | ||||||||||||||||||||||||
North East Asia |
4,118 | 1,693 | 42 | 5,853 | 8,743 | 2,582 | 89 | 11,414 | ||||||||||||||||||||||||
North America |
9,953 | 2,053 | 451 | 12,457 | 19,182 | 4,340 | 746 | 24,268 | ||||||||||||||||||||||||
Europe and Latin America |
10,513 | 3,865 | 853 | 15,231 | 19,099 | 7,191 | 1,648 | 27,938 | ||||||||||||||||||||||||
Middle East and Africa |
4,171 | 1,756 | 91 | 6,018 | 7,922 | 3,309 | 201 | 11,432 | ||||||||||||||||||||||||
Other |
1,792 | 202 | 656 | 2,650 | 3,808 | 414 | 1,295 | 5,517 | ||||||||||||||||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
36,839 | 10,888 | 2,212 | 49,939 | 71,699 | 20,433 | 4,176 | 96,308 | ||||||||||||||||||||||||
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|
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|
|
|||||||||||||||||
Share of total |
74 | % | 22 | % | 4 | % | 100 | % | 75 | % | 21 | % | 4 | % | 100 | % | ||||||||||||||||
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2 2017 | ||||||||||||||||
Sequential change, percent |
Networks | IT & Cloud | Other | Total | ||||||||||||
South East Asia, Oceania and India |
-5 | % | 3 | % | 53 | % | -3 | % | ||||||||
North East Asia |
-11 | % | 90 | % | -11 | % | 5 | % | ||||||||
North America |
8 | % | -10 | % | 53 | % | 5 | % | ||||||||
Europe and Latin America |
22 | % | 16 | % | 7 | % | 20 | % | ||||||||
Middle East and Africa |
11 | % | 13 | % | -17 | % | 11 | % | ||||||||
Other |
-11 | % | -5 | % | 3 | % | -8 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
6 | % | 14 | % | 13 | % | 8 | % | ||||||||
|
|
|
|
|
|
|
|
Q2 2017 | Jan-Jun 2017 | |||||||||||||||||||||||||||||||
Year over year change, percent |
Networks | IT & Cloud | Other | Total | Networks | IT & Cloud | Other | Total | ||||||||||||||||||||||||
South East Asia, Oceania and India |
-2 | % | 10 | % | 7 | % | 0 | % | -1 | % | 9 | % | 1 | % | 1 | % | ||||||||||||||||
North East Asia |
-12 | % | 25 | % | 20 | % | -3 | % | -2 | % | -1 | % | 11 | % | -2 | % | ||||||||||||||||
North America |
-5 | % | -11 | % | -23 | % | -7 | % | -10 | % | 8 | % | -33 | % | -8 | % | ||||||||||||||||
Europe and Latin America |
-11 | % | -12 | % | -10 | % | -11 | % | -15 | % | -9 | % | -13 | % | -13 | % | ||||||||||||||||
Middle East and Africa |
-19 | % | -13 | % | 23 | % | -17 | % | -13 | % | -10 | % | 19 | % | -12 | % | ||||||||||||||||
Other |
0 | % | -19 | % | 7 | % | 0 | % | -29 | % | -40 | % | -5 | % | -26 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
-8 | % | -5 | % | -6 | % | -8 | % | -11 | % | -4 | % | -13 | % | -9 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IPR LICENSING REVENUES BY SEGMENT BY QUARTER
2017 | 2016 | |||||||||||||||||||||||
Isolated quarters, SEK million |
Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||
Networks |
1,562 | 1,609 | 1,612 | 1,610 | 1,724 | 3,064 | ||||||||||||||||||
IT & Cloud |
195 | 201 | 202 | 201 | 216 | 383 | ||||||||||||||||||
Other |
195 | 201 | 202 | 201 | 216 | 383 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
1,952 | 2,011 | 2,016 | 2,012 | 2,156 | 3,830 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
2017 | 2016 | |||||||||||||||||||||||
Year to date, SEK million, |
Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | ||||||||||||||||||
Networks |
3,171 | 1,609 | 8,010 | 6,398 | 4,788 | 3,064 | ||||||||||||||||||
IT & Cloud |
396 | 201 | 1,002 | 800 | 599 | 383 | ||||||||||||||||||
Other |
396 | 201 | 1,002 | 800 | 599 | 383 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
3,963 | 2,011 | 10,014 | 7,998 | 5,986 | 3,830 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
30 Ericsson | Second Quarter Report 2017
2017 | 2016 | |||||||||||||||||||||||
Isolated quarters, SEK million |
Q2 | Q1 | Q4 |