10 Apr 2013

Focus on profitable growth and sustainability at Ericsson shareholder's meeting

In a challenging 2012 for the industry, President and CEO Hans Vestberg says Ericsson showed continued stable performance
Sustainability VP Elaine Weidman-Grunewald joined Vestberg onstage to talk about increasing affordability and access of mobile broadband as well as strengthened commitment to conducting business responsibly
Head of Networks Johan Wibergh demonstrated Ericsson's ability to ensure that people get superior performance, whether speaking, listening to music, or watching video on mobile devices
Ericsson (NASDAQ: ERIC) President and CEO Hans Vestberg presented an overview of the company's 2012 financial performance, key business developments and governance framework at the Annual General Meeting of Shareholders in Stockholm, Sweden.

Vestberg said: "Our sales in 2012 were basically flat compared to 2011. We reported sales of SEK 227.8 million for the year, which is more than 600 million per day. We saw variation in growth for the different segments, but overall we are not satisfied with profitability."

For two of Ericsson's three business segments, Global Services and Support Solutions, business grew and Vestberg highlighted a new acquisition within IPTV.

"We help our customers create and deliver TV and video services with the best picture quality and end-user experience for interactive TV services. Our TV solutions now have over 2000 customers globally. Yesterday we announced the acquisition of Microsoft's IPTV solution, called Mediaroom, which will make Ericsson the leading provider of IPTV and multi-screen solutions with a market share of over 25%," he said.

From 2011 to 2012, sales grew 16% for Global Services. The segment, with 60,000 employees, represents more than half of Ericsson's global workforce. Key deals within Managed Services were highlighted during the shareholders' meeting and Vestberg said that customers are seeking more consulting and systems integration capabilities.

Within Networks, Ericsson remains market leader with 35% of mobile network equipment market and has twice the size of installed base as the number two and three-ranked players combined. While 2011 was stronger than 2012 for Networks, the segment represents 51% of the company's sales, and during the year, Ericsson won key deals for LTE delivery in North East Asia, Brazil, and North America.

Illustrating how the world is moving toward a Networked Society, Vestberg reviewed business deals from 2012 with industries such as shipping, utilities, and IT. "We stand strong in the transformation toward Information and Communications Technology, successfully reshaping our business while not losing sight of our unique competitive advantages," he said.

Wherever Ericsson works in the world, making a positive impact and conducting business responsibly is prioritized. Vestberg invited Elaine Weidman-Grunewald, head of Sustainability and Corporate Responsibility, onstage to outline the highlights of the newly-released 2012 Sustainability and Corporate Responsibility report.

Weidman-Grunewald said: "The theme of our report is Technology for Good, which summarizes our firm belief that mobile broadband is a transformational technology that can help address global sustainability challenges.

"Our 2012 performance can be briefly described in three key focus areas: The positive impact of mobile broadband, energy  continued. and climate change, and conducting business responsibly," she

She covered specific activities that Ericsson is driving in the areas of human rights, and anti-corruption. She said: "We have updated our Code of Business Ethics to reflect the new UN Guiding Principles for Business and Human Rights as well as initiated a two-year business learning program on human rights and business.

"Our Zero tolerance for corruption sets a high bar for responsible business and during the year we joined the Partnering Against Corruption Initiative, PACI, established by members of the World Economic Forum, to counter bribery and provide a platform for corporate anti-corruption programs," Weidman-Grunewald concluded.

Vestberg wrapped up his presentation to shareholders by awarding three Ericsson employees the title "Inventor of the Year." Together, the three engineers are behind 292 patent applications, related to antenna and radio technology within HSPA and LTE.

Vestberg said: "We continuously aim to create a culture where our colleagues can be creative and contribute to Ericsson's ability to always be on the cutting edge, and create new technologies as well as invent new solutions.

"Bo Göransson, George Jöngren, and Henning Wiemann are some of the many fantastic examples of the unique competence, experience and professionalism that our 110,255 employees bring to work every day. Their work is extremely important to ensure Ericsson's leadership," Vestberg concluded.

NOTES TO EDITORS

Ericsson's 2012 Sustainability and Corporate Responsibility report
Press release on the sustainability report

Download high-resolution photos and broadcast-quality video at

www.ericsson.com/press

Ericsson is a world-leading provider of communications technology and services. We are enabling the Networked Society with efficient real-time solutions that allow us all to study, work and live our lives more freely, in sustainable societies around the world.

Our offering comprises services, software and infrastructure within Information and Communications Technology for telecom operators and other industries. Today 40 percent of the world's mobile traffic goes through Ericsson networks and we support customers' networks servicing more than 2.5 billion subscriptions.

We are more than 110,000 people working with customers in more than 180 countries. Founded in 1876, Ericsson is headquartered in Stockholm, Sweden. In 2012 the company's net sales were SEK 227.8 billion (USD 33.8 billion). Ericsson is listed on NASDAQ OMX, Stockholm and NASDAQ, New York stock exchanges.

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