Edgar Filing: ERICSSON LM TELEPHONE CO

6-K

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 21, 2014

LM ERICSSON TELEPHONE COMPANY

(Translation of registrant’s 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 x Form 40-F ¨

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes ¨ No x

THIS REPORT ON FORM 6-K SHALL BE DEEMED TO BE INCORPORATED BY REFERENCE IN THE REGISTRATION STATEMENT ON FORM F-3 (NO. 333-180880) OF TELEFONAKTIEBOLAGET LM ERICSSON (PUBL.) AND TO BE A PART THEREOF FROM THE DATE ON WHICH THIS REPORT IS FURNISHED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED.

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 and
		General Counsel


By:		/S/ HELENA NORRMAN
		Helena Norrman
		Senior Vice President
		Corporate Communications

Date: July 21, 2014

LOGO

This report on Form 6-K shall be deemed to be incorporated by reference in the registration statement on Form F-3 (No. 333-180880) of Telefonaktiebolaget LM Ericsson (publ.) and to be a part thereof from the date on which this report is furnished, to the extent not superseded by documents or reports subsequently filed or furnished.

Second quarter report 2014 Stockholm, July 18, 2014, adjusted for registration statement on form F-3 (No.333-180880).


SECOND QUARTER HIGHLIGHTS	Read more (page)

• Sales in the quarter were SEK 54.8 (55.3) b.		3

• Sales recovered compared to the previous quarter driven by growth in the Middle East, China and India, as well as continued capacity business in North America		2

• Gross margin increased YoY to 36.4% (32.4%), driven by strong development in capacity business, increased IPR revenues and lower restructuring charges		3

• With current visibility, key contracts awarded will gradually impact sales and business mix, in the second half of the year		2

• Operating margin improved YoY to 7.3% (4.5%), mainly driven by stronger performance in segment Networks		3

• Operating income amounted to SEK 4.0 (2.5) b.		5-8

• Cash flow from operating activities was SEK 2.1 (4.3) b.		11


SEK b.	Q2 2014			Q2 2013			YoY change			Q1 2014			QoQ change			Six months 2014			Six months 2013
Net sales		54.8			55.3			-1	%		47.5			15	%		102.4			107.4
Sales growth adj. for comparable units and currency		—			—			-1	%		—			13	%		-4	%		7	%
Gross margin		36.4	%		32.4	%		—			36.5	%		—			36.4	%		32.2	%
Operating income		4.0			2.5			62	%		2.6			52	%		6.6			4.6
Operating margin		7.3	%		4.5	%		—			5.5	%		—			6.5	%		4.3	%
Net income		2.7			1.5			76	%		1.7			57	%		4.4			2.7
EPS diluted, SEK		0.79			0.45			76	%		0.65			22	%		1.44			0.82
Cash flow from operating activities		2.1			4.3			-52	%		9.4			-78	%		11.5			1.3
Net cash, end of period¹⁾		32.5			27.4			18	%		43.6			-26	%		32.5			27.4

¹⁾	Reconciliation of non-IFRS financial measures to the most directly comparable IFRS financial measures can be found on page 30.


Ericsson Second Quarter Report 2014		1

CEO Comments

Sales recovered compared to the previous quarter and were down by -1% year-over-year. Operating margin improved year-over-year, mainly driven by stronger performance in segment Networks.

Sales in the quarter year-over-year were driven by growth in the Middle East, China and India, as well as continued capacity business in North America. This was offset by, as previously communicated, lower revenues from two large mobile broadband coverage projects in North America that peaked in the first half of 2013, and reduced activity in Japan.

The operating margin improved year-over-year, especially in segment Networks. This was due to a higher gross margin primarily from improved business mix with an increased share of mobile broadband capacity projects in advanced LTE markets, as well as higher recurring IPR revenues and efficiency improvements.

After a slow start of the year, we are executing on previously awarded 4G/LTE contracts in Mainland China and Taiwan. Furthermore, the investment climate in India is improving following the concluded spectrum auctions and government elections held in May.

Political unrest prevails in parts of the Middle East and Africa and is still impacting sales. There is also a continued political uncertainty in Russia and the Ukraine, but this had no negative impact on sales in the quarter.

As previously stated and with current visibility, key contracts awarded will gradually impact sales and business mix in the second half of the year.

In line with our strategic agenda, we have continued investing into new and targeted areas. The addition of the modems and Mediaroom businesses, as well as increased investments in IP, have resulted in increased R&D spending. At the same time, we continue to execute on profit improvement activities.

Our modems business will start generating sales by the end of this year, as our modem M7450 will be featured in smartphones and data devices. During the first half of 2014, we have invested SEK 1.2 b. primarily in R&D and we have a strong technology platform. However, the performance of the business is linked to our customers’ success. As previously communicated, success will be measured in an 18-24 months timeframe after integration of the modems business, which was completed in August 2013.

Support Solutions showed negative result in the quarter due to lower sales related to legacy portfolio. However, the transition from traditional telecom software license business models to recurrent license revenue deals continues.

Operating cash flow was positive in the quarter driven mainly by improved income and maintained working capital days. The execution of the company-wide order-to-cash initiative continues and shows good progress.

In a transforming ICT market, we continue to evolve through investments in both our core business as well as in new and targeted areas. Through our technology and services leadership we are well positioned to continue to be a strategic partner to our customers as they move to capture new market opportunities.

Hans Vestberg

President and CEO


Ericsson Second Quarter Report 2014		2

Financial highlights


SEK b.	Q2 2014			Q2 2013			YoY change			Q1 2014			QoQ change			6 months 2014			6 months 2013
Net sales		54.8			55.3			-1	%		47.5			15	%		102.4			107.4
Of which Networks		29.0			28.1			3	%		24.4			19	%		53.3			56.3
Of which Global Services		23.1			24.9			-7	%		20.4			13	%		43.4			46.3
Of which Support Solutions		2.8			2.3			21	%		2.8			2	%		5.6			4.8
Of which Modems		0.0			—			—			0.0			—			0.0			—
Gross income		19.9			17.9			11	%		17.3			15	%		37.3			34.6
Gross margin (%)		36.4	%		32.4	%		—			36.5	%		—			36.4	%		32.2	%
Research and development expenses		-9.1			-7.7			17	%		-8.3			10	%		-17.4			-15.6
Selling and administrative expenses		-6.5			-6.6			-1	%		-6.5			1	%		-13.0			-13.3
Other operating income and expenses		-0.2			-1.0			-80	%		0.0			—			-0.2			-1.0
Operating income		4.0			2.5			62	%		2.6			52	%		6.6			4.6
Operating margin		7.3	%		4.5	%		—			5.5	%		—			6.5	%		4.3	%
for Networks		12	%		5	%		—			10	%		—			11	%		5	%
for Global Services		6	%		6	%		—			5	%		—			6	%		5	%
for Support Solutions		-13	%		-12	%		—			0	%		—			-7	%		-7	%
for Modems		—			—			—			—			—			—			—
Financial net		-0.2			-0.3			-35	%		-0.2			-7	%		-0.4			-0.7
Taxes		-1.1			-0.6			76	%		-0.7			57	%		-1.9			-1.2
Net income		2.7			1.5			76	%		1.7			57	%		4.4			2.7
Restructuring charges		-0.2			-0.9			-74	%		-0.1			87	%		-0.4			-2.8

Net sales

Sales in the quarter, compared to last year, were driven by growth in the Middle East, China and India, as well as continued capacity business in North America. This was offset by, as previously communicated, lower revenues from two large mobile broadband coverage projects in North America that peaked in the first half of 2013, and the impact from reduced activity in Japan.

Segment Networks sales grew YoY while sales in Network Rollout, within segment Global Services, continued to decline. IPR revenues grew YoY following the Samsung license agreement reached in January 2014.

Sales increased sequentially after a weak Q1 2014, driven by strong sales in North America, China and Brazil.

Gross margin

Gross margin increased YoY. Continued strong development in capacity business contributed to higher hardware margins. Increased IPR revenues, lower restructuring charges and efficiency improvements combined with lower Network Rollout sales, also contributed positively to the gross margin.

Restructuring charges

Restructuring charges increased somewhat QoQ but remained at a low level and decreased YoY. The execution on the service delivery strategy, to move local service delivery resources to global centers, continues, but at slower pace compared to last year.

Operating expenses

Total operating expenses increased YoY, mainly due to increased R&D expenses primarily related to the added modems and Mediaroom businesses.

SG&A expenses decreased slightly YoY.


Ericsson Second Quarter Report 2014		3

Quarterly sales, SEK b.

and reported sales growth year over year, percent

Operating expenses, SEK b.

and operating expenses as percentage of sales

Operating income SEK b.

and operating margin, percent

Other operating income and expenses

The revaluation effect from hedges was SEK -0.5 b. compared to SEK -0.1 b. in Q1 2014 and -0.2 b. in Q2 2013. In Q2 2013, there were one-time items of SEK -0.9 b. related to divestments and for exiting the power and telecom cable operations.

Operating income

Operating income increased YoY driven by favorable business mix, IPR revenues and lower restructuring charges, partly offset by increased operating expenses.

Q2 2013 was also impacted by the one-time items of SEK -0.9 b. as mentioned above.

Financial net

Financial net improved slightly YoY mainly due to interest rate revaluation effects.

Net income and EPS

Net income and EPS diluted increased following the improved operating income.


Ericsson Second Quarter Report 2014		4

Segment results

NETWORKS

Segment sales, SEK b.

Quarterly sales, SEK b.

and sales growth year over year

Operating income, SEK b.

and operating margin, percent


SEK b.	Q2 2014			Q2 2013			YoY change			Q1 2014			QoQ change			6 months 2014			6 months 2013
Net sales		29.0			28.1			3	%		24.4			19	%		53.3			56.3
Operating income		3.6			1.3			168	%		2.5			44	%		6.1			2.9
Operating margin		12	%		5	%		—			10	%		—			11	%		5	%
Restructuring charges		-0.1			-0.3			-59	%		-0.1			38	%		-0.2			-1.6

Net sales

Sales recovered in the quarter driven by growth in the Middle East, China, US and India. The majority of sales growth was in Radio Access. In addition, IP Edge and IMS solutions showed good growth. Capacity business developed favorably also this quarter, particularly in advanced LTE markets, driven by operators’ focus on network performance as a key differentiator. The decline in mobile broadband coverage projects in North America and Japan continued as expected.

Sales increased QoQ following a weak first quarter 2014. CDMA sales have stabilized with sales at SEK 0.4 b. in the quarter with a YoY sales decline.

Operating income and margin

For the fourth consecutive quarter, operating margin was 10% or above and operating income has more than doubled over the last six months. The YoY increase was supported by improved business mix, higher IPR revenues and continued focus on commercial excellence and operational effectiveness. The operating margin increased QoQ as a result of higher sales volumes.

Business update

Mobile broadband demand, VoLTE and growing interest in LTE broadcast drives performance initiatives including carrier aggregation and network densification. Small cells and the use of new frequency bands will also be key to address demand.

The momentum for the multi-application router, SSR 8000, continued with 120 contracts signed since the launch in December 2011. During the quarter, 11 new contracts were signed of which 3 were for fixed networks.


Ericsson Second Quarter Report 2014		5

GLOBAL SERVICES

Segment sales, SEK b.

Quarterly sales, SEK b.

and sales growth year over year

Operating income, SEK b.

and operating margin, percent


SEK b.	Q2 2014			Q2 2013			YoY change			Q1 2014			QoQ change			6 months 2014			6 months 2013
Net sales		23.1			24.9			-7	%		20.4			13	%		43.4			46.3
Of which Professional Services		16.6			16.8			-1	%		15.1			10	%		31.7			31.4
Of which Managed Services		6.5			6.8			-4	%		5.8			13	%		12.2			12.6
Of which Network Rollout		6.5			8.1			-19	%		5.3			23	%		11.8			14.9
Operating income		1.5			1.6			-5	%		1.0			44	%		2.5			2.3
Of which Professional Services		2.1			2.3			-8	%		1.9			11	%		4.0			4.1
Of which Network Rollout		-0.6			-0.7			-16	%		-0.9			-29	%		-1.5			-1.8
Operating margin		6	%		6	%		—			5	%		—			6	%		5	%
for Professional Services		13	%		14	%		—			13	%		—			13	%		13	%
for Network Rollout		-9	%		-9	%		—			-16	%		—			-12	%		-12	%
Restructuring charges		-0.1			-0.6			-86	%		0.0			153	%		-0.1			-1.0

Net sales

Sales declined due to reduced mobile broadband network rollout activities in North America and Japan. Professional Services sales remained stable.

Managed Services continues to show high business activity and sales grew QoQ. During the quarter, several new contracts were announced, including a 5-year managed services deal in Romania involving more than 700 employees moving to Ericsson.

Global Services sales increased QoQ driven by increased activities in North America, impacting both Professional Services and Network Rollout.

Operating income and margin

Operating margin remained stable YoY. Network Rollout profitability improved sequentially, due to a reduced negative impact from the European modernization projects and lower temporary project costs in North America.

Professional Services margin declined slightly YoY due to lower sales.

Business update

The acquisition of Red Bee Media was finalized and consolidated as of May. The acquisition has strengthened Ericsson’s position in the transforming television and media industry and several new contracts have been signed in the quarter.


Other information	Q2 2014		Q1 2014		Full year 2013
Number of signed Managed Services contracts		21		16		84
Number of signed significant consulting & systems integration contracts ¹⁾		12		9		31
Number of Ericsson services professionals, end of period		64,000		61,000		64,000

¹⁾	In the areas of OSS and BSS, IP, Service Delivery Platforms and data center build projects.


Ericsson Second Quarter Report 2014		6

SUPPORT SOLUTIONS

Segment sales, SEK b.

Quarterly sales, SEK b.

and sales growth year over year

Operating income, SEK b.

and operating margin, percent


SEK b.	Q2 2014			Q2 2013			YoY change			Q1 2014			QoQ change			6 months 2014			6 months 2013
Net sales		2.8			2.3			21	%		2.8			2	%		5.6			4.8
Operating income		-0.4			-0.3			34	%		0.0			—			-0.4			-0.3
Operating margin		-13	%		-12	%		—			0	%		—			-7	%		-7	%
Restructuring charges		0.0			0.0			0	%		0.0			—			0.0			-0.1

Net sales

Reported sales increased YoY. Growth from the acquired Mediaroom business and in OSS was partly offset by lower BSS sales in Latin America, Sub-Sahara Africa and India.

Sales increased slightly QoQ with strong growth in North America offset by weak sales in emerging markets.

Operating income and margin

Operating income and margin declined YoY and QoQ due to lower sales from legacy portfolio. In addition, investments in next-generation TV solutions are accelerating and this impacted operating income negatively.

Business update

An important multi-year BSS contract with T-Mobile in the US was announced in the quarter. The contract includes software, professional services and third party hardware.

The overall transition from traditional telecom software license business models to recurrent license revenue deals continues.


Ericsson Second Quarter Report 2014		7

MODEMS


SEK b.	Q2 2014		Q1 2014		QoQ change
Net sales		0.0		0.0		—
Operating income		-0.5		-0.7		-39	%
Operating margin		—		—		—
Restructuring charges		0.0		0.0		—

Background

Since August 2013, Ericsson has a LTE thin-modems business with industry leading technology and intellectual property. The operation was integrated into Ericsson after the split-up of the joint venture ST-Ericsson last year. Modems are part of Ericsson’s vision of 50 billion connected devices and the ambition is to be a leading supplier in the thin-modems market. The first product, Ericsson M7450, was released for commercial use in Q4 2013.

Operating income

Operating income was SEK -0.5 b. Total operating expenses for the modems business in 2014 are still estimated at approximately SEK -2.6 b.

Net sales are expected in the second half of 2014.

Business update

Global operator certification for M7450 is progressing as planned, and work is ongoing with tier one smartphone manufacturers to integrate it in their devices. Smartphones and data devices featuring M7450 will be on the market by the end of this year.


Ericsson Second Quarter Report 2014		8

Regional Sales


	Second quarter 2014								Change
SEK b.	Networks		Global Services		Support Solutions		Total		YoY			QoQ
North America		7.7		6.4		1.1		15.2		-1	%		24	%
Latin America		2.6		2.6		0.2		5.4		-3	%		15	%
Northern Europe and Central Asia		1.8		0.9		0.0		2.7		0	%		12	%
Western and Central Europe		1.8		2.6		0.2		4.6		1	%		5	%
Mediterranean		2.5		2.9		0.2		5.5		-11	%		15	%
Middle East		2.5		1.8		0.2		4.5		13	%		17	%
Sub-Saharan Africa		0.9		1.0		0.1		1.9		-29	%		4	%
India		0.9		0.7		0.0		1.6		29	%		-3	%
North East Asia		4.3		2.0		0.1		6.4		-4	%		31	%
South East Asia and Oceania		1.8		1.7		0.1		3.7		-3	%		6	%
Other ¹⁾		2.2		0.5		0.6		3.4		23	%		3	%
Total		29.0		23.1		2.8		54.8		-1	%		15	%

¹⁾	Region “Other” includes licensing revenues, broadcast services, power modules, mobile broadband modules, Ericsson-LG Enterprise and other businesses.

North America

Sales in the quarter were driven by network quality and capacity expansion business, primarily as a result of increasing video traffic. This was offset by lower revenues from two large mobile broadband coverage projects that peaked in the first half of 2013. Recent network ICT transformation contracts, including the modernization of OSS and BSS, drove the Professional Services business.

Latin America

Sales decreased slightly YoY. Operators continue to invest to increase 3G network quality as well as deploy LTE.

Northern Europe and Central Asia

Sales were stable driven by mobile broadband infrastructure investments in Russia and operator focus on network quality. The non-operator business in the Nordics continued to show stable progress.

Western and Central Europe

Sales increased YoY predominantly driven by Managed Services. Investments in network quality and capacity continue to be the main driver. However, this does not fully offset the decline in network modernization projects. Support Solutions increased YoY through the inclusion of Mediaroom.

Mediterranean

Sales in the region declined YoY due to major modernization projects that peaked in the beginning of 2013. Demand for Professional Services continued, driven by Managed Services.

Middle East

Sales continued to show solid growth YoY mainly driven by 3G deployments. 4G is also being deployed in parts of the region. Overall demand for network infrastructure is driven by the rapid increase in data traffic, as well as coverage requirements fueled by new mobile licenses.

Sub-Saharan Africa

During the quarter, sales declined due to overall cautious operator investment levels. This was partly offset by growth in Managed Services as operators seek operational efficiencies.

India

Sales grew YoY as operators increased mobile broadband infrastructure spending in response to rising data volumes. Increased sales related to OSS and BSS also contributed to growth.

North East Asia

Sales decreased YoY as a result of expected lower network investment levels in Japan and the continued structural decline of GSM in China. The decline was partly offset by execution on previously awarded 4G/LTE contracts in Mainland China and Taiwan.

South East Asia and Oceania

Networks sales declined further as major 3G projects in Indonesia peaked in 2013. Global Services sales increased QoQ and YoY driven by a significant rollout project in Australia. There is an increased focus on network quality to improve customer experience in several markets.

Other

Licensing revenues showed good development YoY, following the Samsung agreement. Broadcast services continued to grow as the acquired Red Bee Media business was consolidated in the quarter.


Ericsson Second Quarter Report 2014		9

Cash flow


SEK b.	Q2 2014			Q2 2013			Q1 2014
Net income reconciled to cash		5.9			3.5			3.2
Changes in operating net assets		-3.8			0.8			6.2
Cash flow from operating activities		2.1			4.3			9.4
Cash flow from investing activities		3.7			7.5			-8.8
Cash flow from financing activities		-12.2			-13.1			-5.1
Net change in cash and cash equivalents		-5.0			1.0			-4.0
*Cash conversion (%)¹⁾*		35	%		*123*	%		*290*	%

¹⁾	Reconciliations of non-IFRS financial measures to the most directly comparable IFRS financial measures can be found on page 30.

The positive cash flow from operating activities was driven by strong income with maintained working capital days. Working capital increased mainly as a result of increased sales and preparation for new projects.

Investing activities were impacted by acquisitions of SEK -1.5 b., primarily related to Red Bee Media, and normal capex investments of SEK -1.3 b.

Short-term investments with maturity of more than 3 months have decreased by SEK 7.0 b., primarily as a result of transferred liquidity to Cash and cash equivalents in order to cater for dividend payout.

Cash flow from financing activities in the quarter was mainly related to dividend payouts of SEK -9.8 b. and repayment of debt of SEK -2.0 b.

Payments for ongoing restructuring charges amounted to approximately SEK 0.2 b. in the quarter.


Working capital KPIs, number of days	Jan-Jun 2014		Jan-Mar 2014		Jan-Dec 2013		Jan-Sep 2013		Jan-Jun 2013
Sales outstanding		113		112		97		109		103
Inventory		70		72		62		72		73
Payable		61		62		53		53		55

Days of sales outstanding increased, mainly due to increased sales in the quarter.

Inventory days decreased due to higher volumes and improved process lead times. However, inventory levels increased as an effect of preparation for coming mobile broadband deployments.

Efforts to reduce working capital through a better order-to-cash process continue.


Ericsson Second Quarter Report 2014		10

Financial position

SEK b.

Jun 30
2014

Mar 31
2014

Dec 31
2013

+ Short-term investments

35.3

41.8

35.0

+ Cash and cash equivalents

33.1

38.1

42.1

Gross cash

68.4

79.9

77.1

- Interest bearing liabilities and post-employment benefits

35.9

36.3

39.3

Net cash¹⁾

32.5

43.6

37.8

Equity

138.0

142.6

141.6

Total assets

265.5

267.2

269.2

Capital turnover (times)

1.2

1.1

1.3

Equity ratio (%)

52.0

53.4

52.6

¹⁾	Reconciliations of non-IFRS financial measures to the most directly comparable IFRS financial measures can be found on page 30.

Net cash decreased in the quarter as a result of dividend payout. Borrowings decreased after a loan repayment of EUR 220 million (SEK 2.0 b.) that matured in the quarter.

Post-employment benefits increased by SEK 1.3 b.,mainly due to lower discount rates.

The average maturity of long-term borrowings as of June 30, 2014, was 6.2 years, compared to 5.4 years 12 months ago.

Ericsson has one unutilized Revolving Credit Facility of USD 2.0 b. During the quarter the facility was extended by one year and will mature 2020.

Debt maturity profile, Parent Company, SEK b.


Ericsson Second Quarter Report 2014		11

Parent company

Income after financial items was SEK 2.9 (2.7) b.

Major changes in the Parent Company’s financial position for the year; decreased cash, cash equivalents and short-term investments of SEK 6.1 b., increased current and non-current receivables to subsidiaries of SEK 5.2 b. and increased current and non-current liabilities to subsidiaries of SEK 12.6 b. At the end of the quarter, cash, cash equivalents and short-term investments amounted to SEK 52.4 (58.5) b.

In June the Parent Company repaid bonds of EUR 220 million at maturity date.

A dividend payment of SEK 9.7 b. was made in the quarter as decided by the Annual General Meeting.

In accordance with the conditions of the long-term variable compensation program (LTV) for Ericsson employees, 2,172,945 shares from treasury stock were sold or distributed to employees during the second quarter. The holding of treasury stock at June 30, 2014, was 69,017,337 Class B shares.


Ericsson Second Quarter Report 2014		12

Other information

Ericsson’s Nomination Committee appointed

On May 21, 2014, Ericsson announced that the Nomination Committee for the Annual General Meeting (AGM) 2015 has been appointed in accordance with the Instruction for the Nomination Committee resolved by the AGM 2012.

Ericsson completes acquisition of Red Bee Media

On May 12, 2014, Ericsson announced completion of its acquisition of Red Bee Media, a leading media services company headquartered in the UK, from Creative Broadcast Services Holdings - an entity controlled by Macquarie Advanced Investment Partners, L.P. Ericsson announced its intention to acquire Red Bee Media on July 1, 2013, and the UK’s Competition Commission formally cleared the acquisition on March 27, 2014.

Ericsson appoints Rima Qureshi as Chief Strategy Officer

On April 30, 2014, Ericsson announced the appointment of Rima Qureshi as Chief Strategy Officer for the Ericsson Group. She will also drive the company’s mergers and acquisitions (M&A) strategy and activities. In addition, she will serve as Chairman of Business Unit Modems.

New structure to support segment Networks growth

On April 24, 2014, Ericsson announced the establishment of two new business units within segment Networks in a move to accelerate transformation and support growth. The company has created two new units, Business Unit Radio and Business Unit Cloud & IP, replacing the old Business Unit Networks. The change in organization will enable more focus on the needs of each business while maintaining an end-to-end view on segment Networks. Johan Wibergh, Executive Vice President, will continue to lead segment Networks and remains a member of Ericsson’s Executive Leadership Team.

Composition of the Board of Directors

In conjunction with theAGM on April 11, 2014, Ericsson announced that, in accordance with the proposal of the Nomination Committee, Leif Johansson was re-elected Chairman of the Board of Directors. Roxanne S. Austin, Sir Peter L. Bonfield, Nora Denzel, Börje Ekholm, Alexander Izosimov, Ulf J. Johansson, Sverker Martin-Löf, Kristin Skogen Lund, Hans Vestberg, Jacob Wallenberg and Pär Östberg were re-elected to the Board. Board members appointed by the unions are Pehr Claesson, Kristina Davidsson and Karin Åberg. Deputy board members appointed by the unions are Rickard Fredriksson, Karin Lennartsson and Roger Svensson.

Antitrust investigations against Ericsson

In March 2013, Ericsson filed a patent infringement lawsuit in the Indian Delhi High Court against Micromax Informatics Limited. As part of its defense, Micromax filed a complaint with the Competition Commission of India (CCI) and in November 2013 the CCI decided to refer the case to the Director General’s Office for an in-depth investigation. In January 2014 the CCI announced they had opened another investigation against Ericsson based on claims made by Intex Technologies (India) Limited. Ericsson has made numerous attempts to sign a license agreement with Micromax and Intex on Fair, Reasonable and Non-discriminatory (FRAND) terms.

DISCLOSURE PURSUANT TO SECTION 219 OF THE IRAN THREAT REDUCTION AND SYRIA HUMAN RIGHTS ACT OF 2012 (ITRA)

During the second quarter of 2014, Ericsson made sales of telecommunications infrastructure related products and services in Iran to MTNIrancell and to Mobile Communication Company of Iran, which generated gross revenues (reported as net sales) of approximately SEK 902 million. Ericsson does not normally allocate quarterly net profit (reported as net income) on a country-by-country or activity-by-activity basis, other than as set forth in Ericsson’s consolidated financial statements prepared in accordance with IFRS as issued by the IASB. However, Ericsson has estimated that its net profit from such sales, after internal cost allocation, during the second quarter of 2014 would be substantially lower than such gross revenues.


Ericsson Second Quarter Report 2014		13

Risk factors

Ericsson’s operational and financial risk factors and uncertainties along with our strategies and tactics to mitigate risk exposures or limit unfavorable outcomes are described in our Annual Report 2013. Compared to the risks described in the Annual Report 2013, no material, new or changed risk factors or uncertainties have been identified in the year.

Risk factors and uncertainties in focus short-term for the Parent Company and the Ericsson Group include:

•

Potential negative effects on operators’ willingness to invest in network development due to uncertainty in the financial markets and a weak economic business environment, or reduced consumer telecom spending, or increased pressure on us to provide financing;

•

Uncertainty regarding the financial stability of suppliers, for example due to lack of financing;

•

Effects on gross margins and/or working capital of the product mix in the Networks segment between sales of upgrades and expansions (mainly software) and new build outs of coverage (mainly hardware);

•

Effects on gross margins of the product mix in the Global Services segment including proportion of new network build outs and share of new managed services deals with initial transition costs;

•

A continued volatile sales pattern in the Support Solutions segment or variability in our overall sales seasonality could make it more difficult to forecast future sales;

•

Effects of the ongoing industry consolidation among our customers as well as between our largest competitors, e.g. with postponed investments and intensified price competition as a consequence;

•

Changes in foreign exchange rates, in particular USD, JPY and EUR;

•

Political unrest or instability in certain markets;

•

Effects on production and sales from restrictions with respect to timely and adequate supply of materials, components and production capacity and other vital services on competitive terms;

•

Natural disasters and other events, affecting business, production, supply and transportation.

Ericsson stringently monitors the compliance with all relevant trade regulations and trade embargos applicable to dealings with customers operating in countries where there are trade restrictions or trade restrictions are discussed. Moreover, Ericsson operates globally in accordance with Group policies and directives for business ethics and conduct.

Stockholm, July 18, 2014

Telefonaktiebolaget LM Ericsson

Hans Vestberg, President and CEO

Org. Nr. 556016-0680

This report has not been reviewed by

Telefonaktiebolaget LM Ericsson’s auditors.

Date for next report: October 24, 2014


Ericsson Second Quarter Report 2014		14

For further information, please contact:

Helena Norrman, Senior Vice President,

Communications

Phone: +46 10 719 34 72

E-mail: investor.relations@ericsson.com or

media.relations@ericsson.com

Telefonaktiebolaget LM Ericsson

Org. number: 556016-0680

Torshamnsgatan 21

SE-164 83 Stockholm

Phone: +46 10 719 00 00

Investors

Peter Nyquist, Vice President,

Investor Relations

Phone: +46 10 714 64 49, +46 70 575 29 06

E-mail: peter.nyquist@ericsson.com

Stefan Jelvin, Director,

Investor Relations

Phone: +46 10 714 20 39, +46 70 986 02 27

E-mail: stefan.jelvin@ericsson.com

Åsa Konnbjer, Director,

Investor Relations

Phone: +46 10 713 39 28, +46 73 082 59 28

E-mail: asa.konnbjer@ericsson.com

Rikard Tunedal, Director,

Investor Relations

Phone: +46 10 714 54 00, +46 761 005 400

E-mail: rikard.tunedal@ericsson.com

Media

Ola Rembe, Vice President,

Head of External Communications

Phone: +46 10 719 97 27, +46 73 024 48 73

E-mail: media.relations@ericsson.com

Corporate Communications

Phone: +46 10 719 69 92

E-mail: media.relations@ericsson.com


Ericsson Second Quarter Report 2014		15

Safe harbor statement

All statements made or incorporated by reference in this release, other than statements or characterizations of historical facts, are forward-looking statements. These forward-looking statements are based on our current expectations, estimates and projections about our industry, management’s beliefs and certain assumptions made by us. Forward-looking statements can often be identified by words such as “anticipates”, “expects”, “intends”, “plans”, “predicts”, “believes”, “seeks”, “estimates”, “may”, “will”, “should”, “would”, “potential”, “continue”, and variations or negatives of these words, and include, among others, statements regarding: (i) strategies, outlook and growth prospects; (ii) positioning to deliver future plans and to realize potential for future growth; (iii) liquidity and capital resources and expenditure, and our credit ratings; (iv) growth in demand for our products and services; (v) our joint venture activities; (vi) economic outlook and industry trends; (vii) developments of our markets; (viii) the impact of regulatory initiatives; (ix) research and development expenditures; (x) the strength of our competitors; (xi) future cost savings; (xii) plans to launch new products and services; (xiii) assessments of risks; (xiv) integration of acquired businesses; (xv) compliance with rules and regulations and (xvi) infringements of intellectual property rights of others.

In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. These forward-looking statements speak only as of the date hereof and are based upon the information available to us at this time. Such information is subject to change, and we will not necessarily inform you of such changes. These statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict. Therefore, our actual results could differ materially and adversely from those expressed in any forward-looking statements as a result of various factors. Important factors that may cause such a difference for Ericsson include, but are not limited to: (i) material adverse changes in the markets in which we operate or in global economic conditions; (ii) increased product and price competition; (iii) reductions in capital expenditure by network operators; (iv) the cost of technological innovation and increased expenditure to improve quality of service; (v) significant changes in market share for our principal products and services; (vi) foreign exchange rate or interest rate fluctuations; and (vii) the successful implementation of our business and operational initiatives.


Ericsson Second Quarter Report 2014		16

Financial statements and additional information

Financial statements

18 Consolidated income statement

18 Statement of comprehensive income

19 Consolidated balance sheet

20 Consolidated statement of cash flows

21 Consolidated statement of changes in equity

22 Consolidated income statement - isolated quarters

23 Consolidated statement of cash flows - isolated quarters

Additional information

24 Accounting policies

25 Net sales by segment by quarter

26 Operating income by segment by quarter

26 Operating margin by segment by quarter

27 Net sales by region by quarter

28 Net sales by region by quarter (cont.)

28 Top 5 countries in sales

29 Net sales by region by segment

30 Provisions

30 Information on investments in assets subject to depreciation, amortizations, impairment and write-downs

30 Reconciliation table, non-IFRS measurements

31 Other information

31 Number of employees

32 Restructuring charges by function

32 Restructuring charges by segment


Ericsson Second Quarter Report 2014		17

CONSOLIDATED INCOME STATEMENT


	Apr - Jun									Jan - Jun
SEK million	2013			2014			Change			2013			2014			Change
Net sales		55,331			54,849			-1	%		107,363			102,354			-5	%
Cost of sales		-37,412			-34,910			-7	%		-72,806			-65,094			-11	%

Gross income		17,919			19,939			11	%		34,557			37,260			8	%
Gross margin (%)		32.4	%		36.4	%					32.2	%		36.4	%
Research and development expenses		-7,747			-9,084			17	%		-15,624			-17,359			11	%
Selling and administrative expenses		-6,629			-6,541			-1	%		-13,272			-12,993			-2	%

Operating expenses		-14,376			-15,625			9	%		-28,896			-30,352			5	%
Other operating income and expenses		-1,040			-206						-1,020			-185
Shares in earnings of JV and associated companies		-38			-109						-70			-94			34	%

Operating income		2,465			3,999			62	%		4,571			6,629			45	%
Financial income		304			268						484			669
Financial expenses		-606			-465						-1,171			-1,077

Income after financial items		2,163			3,802			76	%		3,884			6,221			60	%
Taxes		-647			-1,140						-1,164			-1,867

Net income		1,516			2,662			76	%		2,720			4,354			60	%

Net income attributable to:
- Stockholders of the Parent Company		1,469			2,579						2,674			4,699
- Non-controlling interests		47			83						46			-345
Other information
Average number of shares, basic (million)		3,224			3,235						3,223			3,234
Earnings per share, basic (SEK) ¹⁾		0.46			0.80						0.83			1.45
Earnings per share, diluted (SEK) ¹⁾		0.45			0.79						0.82			1.44

STATEMENT OF COMPREHENSIVE INCOME

	Apr - Jun									Jan - Jun
SEK million	2013			2014						2013			2014
Net income		1,516			2,662						2,720			4,354
Other comprehensive income
Items that will not be reclassified to profit or loss
Remeasurements of defined benefits pension plans incl. asset ceiling		954			-574						1,773			-2,196
Tax on items that will not be reclassified to profit or loss		-318			114						-706			443
Items that may be reclassified to profit or loss
Cash flow hedges
Gains/losses arising during the period		-36			—						138			—
Reclassification adjustments for gains/losses included in profit or loss		-297			—						-763			—
Adjustments for amounts transferred to initial carrying amount of hedged items
Revaulation of other investments in shares and participations
Fair value remeasurement		69			—						69			—
Changes in cumulative translation adjustments		1,404			2,619						686			3,020
Share of other comprehensive income on JV and associated companies		120			117						104			128
Tax on items that may be reclassified to profit or loss		65			—						127			—
Total other comprehensive income, net of tax		1,961			2,276						1,428			1,395

Total comprehensive income		3,477			4,938						4,148			5,749

Total comprehensive income attributable to:
Stockholders of the Parent Company		3,394			4,792						4,087			6,032
Non-controlling interest		83			146						61			-283

¹⁾	Based on Net income attributable to stockholders of the Parent Company


Ericsson Second Quarter Report 2014		18

CONSOLIDATED BALANCE SHEET


	Dec 31		Mar 31		Jun 30
SEK million	2013		2014		2014
ASSETS
Non-current assets
Intangible assets
Capitalized development expenses		3,348		3,212		3,082
Goodwill		31,544		32,114		34,243
Intellectual property rights, brands and other intangible assets		12,815		11,889		11,765
Property, plant and equipment		11,433		11,209		11,924
Financial assets
Equity in JV and associated companies		2,568		2,595		2,324
Other investments in shares and participations		505		509		510
Customer finance, non-current		1,294		1,146		1,240
Other financial assets, non-current		5,684		5,779		6,303
Deferred tax assets		9,103		10,030		10,880

		78,294		78,483		82,271
Current assets
Inventories		22,759		24,962		26,915
Trade receivables		71,013		63,643		66,763
Customer finance, current		2,094		1,698		1,994
Other current receivables		17,941		18,528		19,208
Short-term investments		34,994		41,779		35,310
Cash and cash equivalents		42,095		38,096		33,088

		190,896		188,706		183,278
Total assets		269,190		267,189		265,549

EQUITY AND LIABILITIES
Equity
Stockholders’ equity		140,204		141,643		136,948
Non-controlling interest in equity of subsidiaries		1,419		990		1,010

		141,623		142,633		137,958
Non-current liabilities
Post-employment benefits		9,825		11,633		12,884
Provisions, non-current		222		198		202
Deferred tax liabilities		2,650		2,466		2,624
Borrowings, non-current		22,067		18,900		19,504
Other non-current liabilities		1,459		1,532		1,699

		36,223		34,729		36,913
Current liabilities
Provisions, current		5,140		4,730		4,377
Borrowings, current		7,388		5,737		3,525
Trade payables		20,502		20,482		22,795
Other current liabilities		58,314		58,878		59,981

		91,344		89,827		90,678
Total equity and liabilities		269,190		267,189		265,549

Of which interest-bearing liabilities and post-employment benefits		39,280		36,270		35,913
Of which net cash¹⁾		37,809		43,605		32,485
Assets pledged as collateral		2,556		2,528		2,522
Contingent liabilities		657		658		664

¹⁾	Reconciliation of non-IFRS financial measures to the most directly comparable IFRS financial measures can be found on page 30.


Ericsson Second Quarter Report 2014		19

CONSOLIDATED STATEMENT OF CASH FLOWS


	Apr-Jun				Jan - Jun				Jan - Dec
SEK million	2013		2014		2013		2014		2013
Operating activities
Net income		1,516		2,662		2,720		4,354		12,174
Adjustments to reconcile net income to cash
Taxes		-689		26		-2,538		-1,322		-1,323
Earnings/dividends in JV and associated companies		37		356		70		340		258
Depreciation, amortization and impairment losses		2,436		2,414		4,847		4,774		10,137
Other		183		404		-18		953		756

		3,483		5,862		5,081		9,099		22,002
Changes in operating net assets
Inventories		600		-1,188		-826		-3,287		4,868
Customer finance, current and non-current		912		-341		1,172		217		1,809
Trade receivables		3,084		-892		1,150		7,065		-8,504
Trade payables		518		1,644		-2,430		1,534		-2,158
Provisions and post-employment benefits		-1,752		-225		-597		-689		-3,298
Other operating assets and liabilities, net		-2,554		-2,806		-2,229		-2,483		2,670

		808		-3,808		-3,760		2,357		-4,613
Cash flow from operating activities		4,291		2,054		1,321		11,456		17,389
Investing activities
Investments in property, plant and equipment		-1,278		-1,320		-2,474		-2,354		-4,503
Sales of property, plant and equipment		11		53		102		327		378
Acquisitions/divestments of subsidiaries and other operations, net		-39		-1,512		-175		-2,361		-2,682
Product development		-214		-185		-496		-382		-915
Other investing activities		-203		-388		95		-557		-1,330
Short-term investments		9,209		7,012		6,349		222		-2,057

Cash flow from investing activities		7,486		3,660		3,401		-5,105		-11,109
Cash flow before financing activities		11,777		5,714		4,722		6,351		6,280
Financing activities
Dividends paid		-8,863		-9,828		-8,924		-9,828		-9,153
Other financing activities		-4,236		-2,393		-4,144		-7,462		-355

Cash flow from financing activities		-13,099		-12,221		-13,068		-17,290		-9,508
Effect of exchange rate changes on cash		2,357		1,499		2,143		1,932		641
Net change in cash and cash equivalents		1,035		-5,008		-6,203		-9,007		-2,587
Cash and cash equivalents, beginning of period		37,444		38,096		44,682		42,095		44,682
Cash and cash equivalents, end of period		38,479		33,088		38,479		33,088		42,095


Ericsson Second Quarter Report 2014		20

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY


	Jan - Jun		Jan - Jun		Jan - Dec
SEK million	2013		2014		2013
Opening balance		138,483		141,623		138,483
Total comprehensive income		4,148		5,749		11,881
Sale/repurchase of own shares		40		54		90
Stock purchase plan		193		360		388
Dividends paid		-8,924		-9,828		-9,153
Transactions with non-controlling interests		-73		—		-66

Closing balance		133,867		137,958		141,623


Ericsson Second Quarter Report 2014		21

CONSOLIDATED INCOME STATEMENT – ISOLATED QUARTERS


	2013												2014
Isolated quarters, SEK million	Q1			Q2			Q3			Q4			Q1			Q2
Net sales		52,032			55,331			52,981			67,032			47,505			54,849
Cost of sales		-35,394			-37,412			-36,028			-42,171			-30,184			-34,910

Gross income		16,638			17,919			16,953			24,861			17,321			19,939
Gross margin (%)		32.0	%		32.4	%		32.0	%		37.1	%		36.5	%		36.4	%
Research and development expenses		-7,877			-7,747			-7,710			-8,902			-8,275			-9,084
Selling and administrative expenses		-6,643			-6,629			-5,778			-7,223			-6,452			-6,541

Operating expenses		-14,520			-14,376			-13,488			-16,125			-14,727			-15,625
Other operating income and expenses		20			-1,040			805			328			21			-206
Shares in earnings of JV and associated companies		-32			-38			-51			-9			15			-109

Operating income		2,106			2,465			4,219			9,055			2,630			3,999
Financial income		180			304			678			184			401			268
Financial expenses		-565			-606			-595			-327			-612			-465

Income after financial items		1,721			2,163			4,302			8,912			2,419			3,802
Taxes		-517			-647			-1,292			-2,468			-727			-1,140

Net income		1,204			1,516			3,010			6,444			1,692			2,662

Net income attributable to:
- Stockholders of the Parent Company		1,205			1,469			2,921			6,410			2,120			2,579
- Non-controlling interests		-1			47			89			34			-428			83
Other information
Average number of shares, basic (million)		3,222			3,224			3,227			3,230			3,233			3,235
Earnings per share, basic (SEK) ¹⁾		0.37			0.46			0.91			1.98			0.66			0.80
Earnings per share, diluted (SEK)¹⁾		0.37			0.45			0.90			1.97			0.65			0.79

¹⁾	Based on Net income attributable to stockholders of the Parent Company


Ericsson Second Quarter Report 2014		22

CONSOLIDATED STATEMENT OF CASH FLOWS - ISOLATED QUARTERS


	2013								2014
Isolated quarters, SEK million	Q1		Q2		Q3		Q4		Q1		Q2
Operating activities
Net income		1,204		1,516		3,010		6,444		1,692		2,662
Adjustments to reconcile net income to cash
Taxes		-1,849		-689		-881		2,096		-1,348		26
Earnings/dividends in JV and associated companies		33		37		50		138		-16		356
Depreciation, amortization and impairment losses		2,411		2,436		2,546		2,744		2,360		2,414
Other		-201		183		-327		1,101		549		404

		1,598		3,483		4,398		12,523		3,237		5,862
Changes in operating net assets
Inventories		-1,426		600		357		5,337		-2,099		-1,188
Customer finance, current and non-current		260		912		800		-163		558		-341
Trade receivables		-1,934		3,084		-4,744		-4,910		7,957		-892
Trade payables		-2,948		518		-588		860		-110		1,644
Provisions and post-employment benefits		1,155		-1,752		-970		-1,731		-464		-225
Other operating assets and liabilities, net		325		-2,554		2,206		2,693		323		-2,806

		-4,568		808		-2,939		2,086		6,165		-3,808
Cash flow from operating activities		-2,970		4,291		1,459		14,609		9,402		2,054
Investing activities
Investments in property, plant and equipment		-1,196		-1,278		-778		-1,251		-1,034		-1,320
Sales of property, plant and equipment		91		11		97		179		274		53
Acquisitions/divestments of subsidiaries and other operations, net		-136		-39		-1,794		-713		-849		-1,512
Product development		-282		-214		-237		-182		-197		-185
Other investing activities		298		-203		-230		-1,195		-169		-388
Short-term investments		-2,860		9,209		-144		-8,262		-6,790		7,012

Cash flow from investing activities		-4,085		7,486		-3,086		-11,424		-8,765		3,660
Cash flow before financing activities		-7,055		11,777		-1,627		3,185		637		5,714
Financing activities
Dividends paid		-61		-8,863		-21		-208		—		-9,828
Other financing activities		92		-4,236		43		3,746		-5,069		-2,393

Cash flow from financing activities		31		-13,099		22		3,538		-5,069		-12,221
Effect of exchange rate changes on cash		-214		2,357		-1,711		209		433		1,499
Net change in cash and cash equivalents		-7,238		1,035		-3,316		6,932		-3,999		-5,008
Cash and cash equivalents, beginning of period		44,682		37,444		38,479		35,163		42,095		38,096
Cash and cash equivalents, end of period		37,444		38,479		35,163		42,095		38,096		33,088


Ericsson Second Quarter Report 2014		23

Accounting policies

The Group

This interim report is prepared in accordance with IAS 34. The term “IFRS” used in this document refers to the application of IAS and IFRS as well as interpretations of these standards as issued by IASB’s Standards Interpretation Committee (SIC) and IFRS Interpretations Committee (IFRIC). The accounting policies adopted are consistent with those of the annual report for the year ended December 31, 2013, and should be read in conjunction with that annual report.

As from January 1, 2014, the Company has applied the following new or amended IFRSs and IFRICs:

Amendment to IAS 32, “Financial instruments: Presentation,” Offsetting Financial Assets and Financial Liabilities. This amendment is related to the application guidance in IAS 32, ‘Financial instruments: Presentation,’ and clarifies some of the requirements for offsetting financial assets and financial liabilities on the balance sheet.

IFRIC 21, “Levies.” This interpretation of IAS 37 “Provisions, contingent liabilities and contingent assets” sets out the accounting for an obligation to pay a levy that is not income tax. The interpretation addresses what the obligating event is that gives rise to the need to pay a levy and when a liability should be recognized.

None of the new or amended standards and interpretations has had any significant impact on the financial result or position of the Company. There is no significant difference between IFRS effective as per June 30, 2014 and IFRS as endorsed by the EU.

In the interim reports of 2013 disclosure was given in relation to IFRS 7 about fair valuation of financial instruments. Due to that the amounts are not considered material this disclosure will not be given in the interim reports as from the first quarter of 2014. Should amounts become material quarterly disclosure will be given as from then.


Ericsson Second Quarter Report 2014		24

NET SALES BY SEGMENT BY QUARTER

Segment Modems was consolidated as of October 1, 2013.


	2013												2014
Isolated quarters, SEK million	Q1			Q2			Q3			Q4			Q1			Q2
Networks		28,133			28,142			26,655			34,769			24,383			28,964
Global Services		21,452			24,851			23,974			27,166			20,356			23,059
Of which Professional Services		14,626			16,773			16,229			18,767			15,078			16,554
Of which Managed Services		5,888			6,754			6,264			6,574			5,754			6,485
Of which Network Rollout		6,826			8,078			7,745			8,399			5,278			6,505
Support Solutions		2,447			2,338			2,352			5,097			2,765			2,824
Modems		—			—			—			—			1			2

Total		52,032			55,331			52,981			67,032			47,505			54,849


	2013												2014
Sequential change, percent	Q1			Q2			Q3			Q4			Q1			Q2
Networks		-20	%		0	%		-5	%		30	%		-30	%		19	%
Global Services		-24	%		16	%		-4	%		13	%		-25	%		13	%
Of which Professional Services		-23	%		15	%		-3	%		16	%		-20	%		10	%
Of which Managed Services		-13	%		15	%		-7	%		5	%		-12	%		13	%
Of which Network Rollout		-26	%		18	%		-4	%		8	%		-37	%		23	%
Support Solutions		-33	%		-4	%		1	%		117	%		-46	%		2	%
Modems		—			—			—			—			—			100	%

Total		-22	%		6	%		-4	%		27	%		-29	%		15	%


	2013												2014
Year over year change, percent	Q1			Q2			Q3			Q4			Q1			Q2
Networks		3	%		1	%		-1	%		-1	%		-13	%		3	%
Global Services		4	%		3	%		-1	%		-3	%		-5	%		-7	%
Of which Professional Services		-2	%		-1	%		-1	%		-1	%		3	%		-1	%
Of which Managed Services		3	%		4	%		-1	%		-3	%		-2	%		-4	%
Of which Network Rollout		19	%		13	%		-2	%		-8	%		-23	%		-19	%
Support Solutions		-19	%		-33	%		-29	%		40	%		13	%		21	%
Modems		—			—			—			—			—			—

Total		2	%		0	%		-3	%		0	%		-9	%		-1	%


	2013												2014
Year to date, SEK million	Jan -Mar			Jan - Jun			Jan - Sep			Jan - Dec			Jan -Mar			Jan - Jun
Networks		28,133			56,275			82,930			117,699			24,383			53,347
Global Services		21,452			46,303			70,277			97,443			20,356			43,415
Of which Professional Services		14,626			31,399			47,628			66,395			15,078			31,632
Of which Managed Services		5,888			12,642			18,906			25,480			5,754			12,239
Of which Network Rollout		6,826			14,904			22,649			31,048			5,278			11,783
Support Solutions		2,447			4,785			7,137			12,234			2,765			5,589
Modems		—			—			—			—			1			3

Total		52,032			107,363			160,344			227,376			47,505			102,354


Year to date,	2013												2014
year over year change, percent	Jan -Mar			Jan - Jun			Jan - Sep			Jan - Dec			Jan -Mar			Jan -Jun
Networks		3	%		2	%		1	%		0	%		-13	%		-5	%
Global Services		4	%		4	%		2	%		0	%		-5	%		-6	%
Of which Professional Services		-2	%		-1	%		-1	%		-1	%		3	%		1	%
Of which Managed Services		3	%		4	%		2	%		1	%		-2	%		-3	%
Of which Network Rollout		19	%		16	%		9	%		4	%		-23	%		-21	%
Support Solutions		-19	%		-26	%		-27	%		-9	%		13	%		17	%
Modems		—			—			—			—			—			—

Total		2	%		1	%		0	%		0	%		-9	%		-5	%


Ericsson Second Quarter Report 2014		25

OPERATING INCOME BY SEGMENT BY QUARTER


	2013												2014
Isolated quarters, SEK million	Q1			Q2			Q3			Q4			Q1			Q2
Networks		1,565			1,335			2,557			5,861			2,476			3,574
Global Services		726			1,564			1,808			2,087			1,036			1,487
Of which Professional Services		1,837			2,285			2,279			2,628			1,893			2,095
Of which Network Rollout		-1,111			-721			-471			-541			-857			-608
Support Solutions		-29			-283			-113			1,880			12			-378
Modems		—			—			—			-543			-745			-456
Unallocated¹⁾		-156			-151			-33			-230			-149			-228

Total		2,106			2,465			4,219			9,055			2,630			3,999


	2013												2014
Year to date, SEK million	Jan - Mar			Jan - Jun			Jan - Sep			Jan - Dec			Jan - Mar			Jan - Jun
Networks		1,565			2,900			5,457			11,318			2,476			6,050
Global Services		726			2,290			4,098			6,185			1,036			2,523
Of which Professional Services		1,837			4,122			6,401			9,029			1,893			3,988
Of which Network Rollout		-1,111			-1,832			-2,303			-2,844			-857			-1,465
Support Solutions		-29			-312			-425			1,455			12			-366
Modems		—			—			—			-543			-745			-1,201
Unallocated¹⁾		-156			-307			-340			-570			-149			-377

Total		2,106			4,571			8,790			17,845			2,630			6,629


OPERATING MARGIN BY SEGMENT BY QUARTER

As percentage of net sales, isolated quarters	2013												2014
As percentage of net sales, isolated quarters	Q1			Q2			Q3			Q4			Q1			Q2
Networks		6	%		5	%		10	%		17	%		10	%		12	%
Global Services		3	%		6	%		8	%		8	%		5	%		6	%
Of which Professional Services		13	%		14	%		14	%		14	%		13	%		13	%
Of which Network Rollout		-16	%		-9	%		-6	%		-6	%		-16	%		-9	%
Support Solutions		-1	%		-12	%		-5	%		37	%		0	%		-13	%
Modems		—			—			—			—			—			—

Total		4	%		4	%		8	%		14	%		6	%		7	%


As percentage of net sales, Year to date	2013												2014
As percentage of net sales, Year to date	Jan - Mar			Jan - Jun			Jan - Sep			Jan - Dec			Jan -Mar			Jan - Jun
Networks		6	%		5	%		7	%		10	%		10	%		11	%
Global Services		3	%		5	%		6	%		6	%		5	%		6	%
Of which Professional Services		13	%		13	%		13	%		14	%		13	%		13	%
Of which Network Rollout		-16	%		-12	%		-10	%		-9	%		-16	%		-12	%
Support Solutions		-1	%		-7	%		-6	%		12	%		0	%		-7	%
Modems		—			—			—			—			—			—

Total		4	%		4	%		5	%		8	%		6	%		6	%

¹⁾	“Unallocated” consists mainly of costs for corporate staff, non-operational capital gains and losses


Ericsson Second Quarter Report 2014		26

NET SALES BY REGION BY QUARTER


	2013												2014
Isolated quarters, SEK million	Q1			Q2			Q3			Q4			Q1			Q2
North America		15,773			15,341			14,453			13,772			12,215			15,179
Latin America		4,374			5,565			5,294			6,749			4,710			5,414
Northern Europe & Central Asia ^{1) 2)}		2,283			2,708			2,949			3,678			2,436			2,717
Western & Central Europe ²⁾		4,349			4,522			4,399			5,215			4,381			4,582
Mediterranean ²⁾		5,271			6,159			5,659			7,067			4,785			5,487
Middle East		3,160			3,978			4,386			5,914			3,859			4,514
Sub Saharan Africa		2,131			2,653			2,693			2,572			1,813			1,886
India		1,606			1,279			1,280			1,973			1,695			1,645
North East Asia		6,054			6,642			6,053			8,649			4,908			6,406
South East Asia & Oceania		4,129			3,758			3,617			4,283			3,446			3,662
Other ^{1) 2)}		2,902			2,726			2,198			7,160			3,257			3,357

Total		52,032			55,331			52,981			67,032			47,505			54,849

¹⁾ Of which in Sweden		1,020			1,276			798			1,333			999			1,008
²⁾ Of which in EU		9,782			10,816			10,111			12,835			9,720			10,320

	2013												2014
Sequential change, percent	Q1			Q2			Q3			Q4			Q1			Q2
North America		-7	%		-3	%		-6	%		-5	%		-11	%		24	%
Latin America		-33	%		27	%		-5	%		27	%		-30	%		15	%
Northern Europe & Central Asia ^{1) 2)}		-24	%		19	%		9	%		25	%		-34	%		12	%
Western & Central Europe ²⁾		-20	%		4	%		-3	%		19	%		-16	%		5	%
Mediterranean ²⁾		-25	%		17	%		-8	%		25	%		-32	%		15	%
Middle East		-38	%		26	%		10	%		35	%		-35	%		17	%
Sub Saharan Africa		-40	%		24	%		2	%		-4	%		-30	%		4	%
India		0	%		-20	%		0	%		54	%		-14	%		-3	%
North East Asia		-41	%		10	%		-9	%		43	%		-43	%		31	%
South East Asia & Oceania		-9	%		-9	%		-4	%		18	%		-20	%		6	%
Other ^{1) 2)}		-3	%		-6	%		-19	%		226	%		-55	%		3	%

Total		-22	%		6	%		-4	%		27	%		-29	%		15	%

¹⁾ Of which in Sweden		-20	%		25	%		-37	%		67	%		-25	%		1	%
²⁾ Of which in EU		-24	%		11	%		-7	%		27	%		-24	%		6	%

	2013												2014
Year-over-year change, percent	Q1			Q2			Q3			Q4			Q1			Q2
North America		23	%		18	%		3	%		-19	%		-23	%		-1	%
Latin America		-9	%		6	%		-2	%		4	%		8	%		-3	%
Northern Europe & Central Asia ^{1) 2)}		0	%		-19	%		9	%		23	%		7	%		0	%
Western & Central Europe ²⁾		1	%		10	%		21	%		-4	%		1	%		1	%
Mediterranean ²⁾		14	%		-1	%		5	%		0	%		-9	%		-11	%
Middle East		0	%		7	%		21	%		17	%		22	%		13	%
Sub Saharan Africa		-3	%		-5	%		-4	%		-28	%		-15	%		-29	%
India		13	%		-25	%		-26	%		23	%		6	%		29	%
North East Asia		-34	%		-21	%		-28	%		-16	%		-19	%		-4	%
South East Asia & Oceania		22	%		2	%		3	%		-5	%		-17	%		-3	%
Other ^{1) 2)}		2	%		-13	%		-34	%		141	%		12	%		23	%

Total		2	%		0	%		-3	%		0	%		-9	%		-1	%

¹⁾ Of which in Sweden		22	%		0	%		-52	%		5	%		-2	%		-21	%
²⁾ Of which in EU		3	%		-3	%		-5	%		-1	%		-1	%		-5	%


Ericsson Second Quarter Report 2014		27

NET SALES BY REGION BY QUARTER (continued)


	2013												2014
Year to date, SEK million	Jan - Mar			Jan - Jun			Jan - Sep			Jan - Dec			Jan - Mar			Jan - Jun
North America		15,773			31,114			45,567			59,339			12,215			27,394
Latin America		4,374			9,939			15,233			21,982			4,710			10,124
Northern Europe & Central Asia ^{1) 2)}		2,283			4,991			7,940			11,618			2,436			5,153
Western & Central Europe ²⁾		4,349			8,871			13,270			18,485			4,381			8,963
Mediterranean ²⁾		5,271			11,430			17,089			24,156			4,785			10,272
Middle East		3,160			7,138			11,524			17,438			3,859			8,373
Sub Saharan Africa		2,131			4,784			7,477			10,049			1,813			3,699
India		1,606			2,885			4,165			6,138			1,695			3,340
North East Asia		6,054			12,696			18,749			27,398			4,908			11,314
South East Asia & Oceania		4,129			7,887			11,504			15,787			3,446			7,108
Other ^{1) 2)}		2,902			5,628			7,826			14,986			3,257			6,614

Total		52,032			107,363			160,344			227,376			47,505			102,354

¹⁾ Of which in Sweden		1,020			2,296			3,094			4,427			999			2,007
²⁾ Of which in EU		9,782			20,598			30,709			43,544			9,720			20,040

Year to date,	2013												2014
year-over-year change, percent	Jan - Mar			Jan - Jun			Jan - Sep			Jan - Dec			Jan - Mar			Jan - Jun
North America		23	%		21	%		14	%		5	%		-23	%		-12	%
Latin America		-9	%		-1	%		-2	%		0	%		8	%		2	%
Northern Europe & Central Asia ^{1) 2)}		0	%		-12	%		-5	%		2	%		7	%		3	%
Western & Central Europe ²⁾		1	%		6	%		10	%		6	%		1	%		1	%
Mediterranean ²⁾		14	%		6	%		5	%		4	%		-9	%		-10	%
Middle East		0	%		4	%		10	%		12	%		22	%		17	%
Sub Saharan Africa		-3	%		-4	%		-4	%		-11	%		-15	%		-23	%
India		13	%		-8	%		-14	%		-5	%		6	%		16	%
North East Asia		-34	%		-28	%		-28	%		-24	%		-19	%		-11	%
South East Asia & Oceania		22	%		12	%		9	%		5	%		-17	%		-10	%
Other^{1) 2)}		2	%		-6	%		-16	%		22	%		12	%		18	%

Total		2	%		1	%		0	%		0	%		-9	%		-5	%

¹⁾ Of which in Sweden		22	%		9	%		-18	%		-12	%		-2	%		-13	%
²⁾ Of which in EU		3	%		-1	%		-2	%		-2	%		-1	%		-3	%

TOP 5 COUNTRIES IN SALES
							Q2						Jan - Jun
Country							2013			2014			2013			2014
UNITED STATES								27	%		28	%		28	%		27	%
CHINA								4	%		6	%		4	%		5	%
JAPAN								7	%		4	%		7	%		4	%
INDIA								2	%		3	%		3	%		3	%
KOREA								1	%		3	%		1	%		3	%


Ericsson Second Quarter Report 2014		28

NET SALES BY REGION BY SEGMENT

Revenue from Telcordia is reported 50/50 between segments Global Services and Support Solutions.


	Q2 2014															Jan - Jun 2014
SEK milion	Net- works			Global Services			Support Solutions			Modems			Total			Net- works			Global Services			Support Solutions			Modems			Total
North America		7,708			6,365			1,106			—			15,179			14,253			11,403			1,738			—			27,394
Latin America		2,615			2,643			156			—			5,414			5,050			4,681			393			—			10,124
Northern Europe & Central Asia		1,754			914			49			—			2,717			3,127			1,918			108			—			5,153
Western & Central Europe		1,830			2,592			160			—			4,582			3,624			5,050			289			—			8,963
Mediterranean		2,450			2,860			177			—			5,487			4,438			5,466			368			—			10,272
Middle East		2,541			1,776			197			—			4,514			4,349			3,648			376			—			8,373
Sub Saharan Africa		858			955			73			—			1,886			1,583			1,785			331			—			3,699
India		887			710			48			—			1,645			1,775			1,409			156			—			3,340
North East Asia		4,312			2,006			88			—			6,406			7,082			4,031			201			—			11,314
South East Asia & Oceania		1,814			1,724			124			—			3,662			3,676			3,216			216			—			7,108
Other		2,195			514			646			2			3,357			4,390			808			1,413			3			6,614

Total		28,964			23,059			2,824			2			54,849			53,347			43,415			5,589			3			102,354
Share of Total		53	%		42	%		5	%		0	%		100	%		51	%		43	%		6	%		0	%		100	%


	Q2 2014
Sequential change, percent	Net- works			Global Services			Support Solutions			Modems			Total
North America		18	%		26	%		75	%		—			24	%
Latin America		7	%		30	%		-34	%		—			15	%
Northern Europe & Central Asia		28	%		-9	%		-17	%		—			12	%
Western & Central Europe		2	%		5	%		24	%		—			5	%
Mediterranean		23	%		10	%		-7	%		—			15	%
Middle East		41	%		-5	%		10	%		—			17	%
Sub Saharan Africa		18	%		15	%		-72	%		—			4	%
India		0	%		2	%		-56	%		—			-3	%
North East Asia		56	%		-1	%		-22	%		—			31	%
South East Asia & Oceania		-3	%		16	%		35	%		—			6	%
Other		0	%		75	%		-16	%		100	%		3	%

Total		19	%		13	%		2	%		100	%		15	%

	Q2 2014
Year over year change, percent	Net- works			Global Services			Support Solutions			Modems			Total
North America		4	%		-14	%		126	%		—			-1	%
Latin America		-12	%		15	%		-45	%		—			-3	%
Northern Europe & Central Asia		8	%		-11	%		-17	%		—			0	%
Western & Central Europe		-6	%		6	%		17	%		—			1	%
Mediterranean		-16	%		-7	%		8	%		—			-11	%
Middle East		40	%		-11	%		15	%		—			13	%
Sub Saharan Africa		-31	%		-16	%		-73	%		—			-29	%
India		83	%		-1	%		-37	%		—			29	%
North East Asia		14	%		-29	%		52	%		—			-4	%
South East Asia & Oceania		-10	%		6	%		13	%		—			-3	%
Other		16	%		69	%		24	%		—			23	%

Total		3	%		-7	%		21	%		—			-1	%

	Jan - Jun 2014
Year over year change, percent	Net- works			Global Services			Support Solutions			Modems			Total
North America		-14	%		-16	%		78	%		—			-12	%
Latin America		1	%		8	%		-38	%		—			2	%
Northern Europe & Central Asia		8	%		-3	%		-12	%		—			3	%
Western & Central Europe		-6	%		6	%		14	%		—			1	%
Mediterranean		-17	%		-5	%		21	%		—			-10	%
Middle East		35	%		5	%		-15	%		—			17	%
Sub Saharan Africa		-33	%		-9	%		-31	%		—			-23	%
India		32	%		5	%		-21	%		—			16	%
North East Asia		-1	%		-25	%		39	%		—			-11	%
South East Asia & Oceania		-20	%		5	%		-1	%		—			-10	%
Other		13	%		13	%		40	%		—			18	%

Total		-5	%		-6	%		17	%		—			-5	%


Ericsson Second Quarter Report 2014		29

PROVISIONS


	2013												2014
Isolated quarters, SEK million	Q1			Q2			Q3			Q4			Q1			Q2
Opening balance		8,638			9,499			7,716			6,414			5,362			4,928
Additions		1,915			1,215			658			911			625			429
Utilization/Cash out		-758			-2,365			-1,534			-1,364			-977			-642
Of which restructuring		-324			-1,001			-457			-307			-512			-246
Reversal of excess amounts		-209			-586			-191			-575			-88			-297
Reclassification, translation difference and other		-87			-47			-235			-24			6			161

Closing balance		9,499			7,716			6,414			5,362			4,928			4,579


	2013												2014
Year to date, SEK million	Jan - Mar			Jan - Jun			Jan - Sep			Jan - Dec			Jan - Mar			Jan - Jun
Opening balance		8,638			8,638			8,638			8,638			5,362			5,362
Additions		1,915			3,130			3,788			4,699			625			1,055
Utilization/Cash out		-758			-3,123			-4,657			-6,021			-977			-1,619
Of which restructuring		-324			-1,325			-1,782			-2,089			-512			-758
Reversal of excess amounts		-209			-795			-986			-1,561			-88			-386
Reclassification, translation difference and other		-87			-134			-369			-393			6			167

Closing balance		9,499			7,716			6,414			5,362			4,928			4,579


INFORMATION ON INVESTMENTS IN ASSETS SUBJECT TO DEPRECIATION, AMORTIZATION, IMPAIRMENT AND WRITE-DOWNS

	2013												2014
Isolated quarters, SEK million	Q1			Q2			Q3			Q4			Q1			Q2
Additions
Property, plant and equipment		1,196			1,278			778			1,251			1,034			1,320
Capitalized development expenses		282			214			237			182			197			185
IPR, brands and other intangible assets		196			22			1,418			562			77			621

Total		1,674			1,514			2,433			1,995			1,308			2,126

Depreciation, amortization and impairment losses
Property, plant and equipment		1,008			983			1,008			1,210			1,004			1,048
Capitalized development expenses		303			342			388			374			333			315
IPR, brands and other intangible assets, etc.		1,100			1,111			1,150			1,160			1,023			1,051

Total		2,411			2,436			2,546			2,744			2,360			2,414


RECONCILIATION TABLE, NON-IFRS MEASUREMENTS

CASH CONVERSION

	2013												2014
Isolated quarters, SEK million	Q1			Q2			Q3			Q4			Q1			Q2
Net income		1,204			1,516			3,010			6,444			1,692			2,662
Net income reconciled to cash		1,598			3,483			4,398			12,523			3,237			5,862
Cash flow from operating activities		-2,970			4,291			1,459			14,609			9,402			2,054
Cash conversion		-185.9	%		123.2	%		33.2	%		116.7	%		290.5	%		35	%

NET CASH, END OF PERIOD
SEK million										Dec 31 2013			Mar 31 2014			Jun 30 2014
Cash and cash equivalents											42,095			38,096			33,088
+ Short term investments											34,994			41,779			35,310
- Borrowings, non-current											22,067			18,900			19,504
- Borrowings, current											7,388			5,737			3,525
- Post employment benefits											9,825			11,633			12,884
Net cash, end of period											37,809			43,605			32,485


Ericsson Second Quarter Report 2014		30

OTHER INFORMATION


			Apr - Jun						Jan - Jun						Jan - Dec
			2013			2014			2013			2014			2013
Number of shares and earnings per share
Number of shares, end of period (million)				3,305			3,305			3,305			3,305			3,305
Of which class A-shares (million)				262			262			262			262			262
Of which class B-shares (million)				3,043			3,043			3,043			3,043			3,043
Number of treasury shares, end of period (million)				80			69			80			69			74
Number of shares outstanding, basic, end of period (million)				3,225			3,236			3,225			3,236			3,231
Numbers of shares outstanding, diluted, end of period (million)				3,257			3,268			3,257			3,268			3,262
Average number of treasury shares (million)				81			70			82			71			79
Average number of shares outstanding, basic (million)				3,224			3,235			3,223			3,234			3,226
Average number of shares outstanding, diluted (million) ¹⁾				3,256			3,268			3,255			3,266			3,257
Earnings per share, basic (SEK)				0.46			0.80			0.83			1.45			3.72
Earnings per share, diluted (SEK) ¹⁾				0.45			0.79			0.82			1.44			3.69
Ratios
Days sales outstanding				—			—			103			113			97
Inventory turnover days				73			68			73			70			62
Payable days				50			57			55			61			53
Equity ratio (%)				—			—			51.2	%		52.0	%		52.6	%
Capital turnover (times)				1.3			1.2			1.2			1.2			1.3
Cash conversion %, end of period²⁾				123.2	%		35.0	%		26.0	%		125.9	%		79.0	%
Payment readiness, end of period				—			—			74,246			78,316			82,631
Payment readiness, as percentage of sales				—			—			34.6	%		38.3	%		36.3	%
Exchange rates used in the consolidation
SEK/EUR - average rate				—			—			8.56			8.98			8.67
- closing rate				—			—			8.79			9.18			8.90
SEK/USD - average rate				—			—			6.53			6.55			6.52
- closing rate				—			—			6.73			6.72			6.46
Other
Regional inventory, end of period,				20,284			17,339			20,284			17,339			14,652
Export sales from Sweden				23,555			28,157			49,709			52,235			108,944

¹⁾ Potential ordinary shares are not considered when their conversion to ordinary shares would increase earnings per share
²⁾ Reconciliation of non-IFRS financial measures to the most directly comparable IFRS financial measures can be found on page 30.

NUMBER OF EMPLOYEES
	2013											2014
End of period	Mar 31		Jun 30			Sep 30			Dec 31			Mar 31			Jun 30
North America		15,404		15,047			14,825			14,931			14,902			15,306
Latin America		11,153		11,412			11,402			11,445			9,731			11,179
Northern Europe & Central Asia ¹⁾		21,043		21,148			22,038			21,892			21,484			21,476
Western & Central Europe		11,118		11,235			11,612			11,530			11,455			12,624
Mediterranean		12,015		12,405			12,350			12,314			12,253			12,475
Middle East		3,951		3,951			3,766			3,752			3,749			3,736
Sub Saharan Africa		1,967		2,101			2,081			2,084			2,094			2,284
India		14,588		16,183			16,978			17,622			17,991			18,495
North East Asia		14,088		14,059			14,625			14,503			13,490			13,448
South East Asia & Oceania		4,321		4,264			4,312			4,267			4,234			4,359

Total		109,648		111,805			113,989			114,340			111,383			115,382

¹⁾ Of which in Sweden		17,550		17,264			18,008			17,858			17,545			17,497


Ericsson Second Quarter Report 2014		31

RESTRUCTURING CHARGES BY FUNCTION


	2013								2014
Isolated quarters, SEK million	Q1		Q2		Q3		Q4		Q1		Q2
Cost of sales		-698		-707		-600		-652		-82		-116
Research and development expenses		-552		-117		-64		-139		-19		-80
Selling and administrative expenses		-589		-110		-55		-170		-29		-47

Total		-1,839		-934		-719		-961		-130		-243


	2013								2014
Year to date, SEK million	Jan - Mar		Jan - Jun		Jan - Sep		Jan - Dec		Jan - Mar		Jan - Jun
Cost of sales		-698		-1,405		-2,005		-2,657		-82		-198
Research and development expenses		-552		-669		-733		-872		-19		-99
Selling and administrative expenses		-589		-699		-754		-924		-29		-76

Total		-1,839		-2,773		-3,492		-4,453		-130		-373


RESTRUCTURING CHARGES BY SEGMENT
	2013								2014
Isolated quarters, SEK million	Q1		Q2		Q3		Q4		Q1		Q2
Networks		-1,251		-316		-299		-316		-93		-128
Global Services		-385		-586		-410		-616		-32		-81
Of which Professional Services		-270		-389		-290		-420		-25		-63
Of which Network Rollout		-115		-197		-120		-196		-7		-18
Support Solutions		-111		-34		-11		-30		-5		-34
Modems		—		—		—		—		—		—
Unallocated		-92		2		1		1		0		—

Total		-1,839		-934		-719		-961		-130		-243


	2013								2014
Year to date, SEK million	Jan - Mar		Jan - Jun		Jan - Sep		Jan - Dec		Jan - Mar		Jan - Jun
Networks		-1,251		-1,567		-1,866		-2,182		-93		-221
Global Services		-385		-971		-1,381		-1,997		-32		-113
Of which Professional Services		-270		-659		-949		-1,369		-25		-88
Of which Network Rollout		-115		-312		-432		-628		-7		-25
Support Solutions		-111		-145		-156		-186		-5		-39
Modems		—		—		—		—		—		—
Unallocated		-92		-90		-89		-88		—		—

Total		-1,839		-2,773		-3,492		-4,453		-130		-373


Ericsson Second Quarter Report 2014		32

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