Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16]

Share Name	Share Symbol	Market	Type
Telefon AB LM Ericsson Sweden (PK)	USOTC:ERIXF	OTCMarkets	Common Stock

	Price Change	% Change	Share Price	Bid Price	Offer Price	High Price	Low Price	Open Price	Shares Traded	Last Trade
	0.00	0.00%	7.75	7.43	8.22				13	21:11:33

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

January 24, 2025

Commission File Number 000-12033

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 ☒ 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, January 24, 2025 regarding “Fourth quarter and full-year report 2024”

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/ STELLA MEDLICOTT
		Stella Medlicott
		Senior Vice President,
		Chief Marketing and Communications Officer

By:		/s/ LARS SANDSTRÖM
		Lars Sandström
		Senior Vice President, Chief Financial Officer

Date: January 24, 2025

LOGO

Fourth quarter and full-year report 2024

Strategic highlights – continuing to deliver on strategic and operational priorities

•

Maintaining leadership in programmable networks, with new 5G Advanced software launched in October.

•

Growing interest in network APIs, with financial fraud protection and Quality on Demand applications in focus.

•

Further patent licensing agreement signed in Q4, with strong IPR revenue generation in 2024.

Fourth quarter highlights – growth in Networks sales, and strong gross margin expansion

•

Sales increased by 2%* YoY, with 54%* growth in market area North America. Market area Europe and Latin America also grew, while the other market areas declined significantly. Reported sales were SEK 72.9 (71.9) b.

•

Adjusted¹ gross income increased to SEK 33.7 (29.6) b. driven by strong expansion in Networks adjusted¹ gross margin to 49.1% (43.2%). Reported gross income was SEK 32.7 (28.6) b.

•

Adjusted¹ gross margin was 46.3% (41.1%) driven by supply chain efficiency actions, commercial discipline and market mix. Reported gross margin was 44.9% (39.8%).

•

Adjusted¹ EBITA was SEK 10.2 (8.2) b. with a 14.1% (11.4%) margin, benefiting from higher gross income and cost actions, partly offset by bonus accruals which were above target level. EBITA was SEK 8.6 (6.7) b.

•

Net income was SEK 4.9 (3.4) b. EPS diluted was SEK 1.44 (1.02).

•

Free cash flow before M&A was SEK 15.8 (12.5) b. supported by earnings growth and improved working capital.

Full-year highlights – strong growth in North America, and strong free cash flow

•

Sales declined by -5%*, impacted by a -6%* sales decrease in Networks. Reported sales were SEK 247.9 (263.4) b.

•

Adjusted¹ gross income increased to SEK 111.4 (104.4) b. with an increased contribution from all segments.

•

Adjusted¹ EBITA was SEK 27.2 (21.4) b. with an adjusted¹ EBITA margin of 11.0% (8.1%).

•

Adjusted¹ EBIT margin was 3.8% (-5.2%).

•

Net income was SEK 0.4 (-26.1) b. EPS diluted was SEK 0.01 (-7.94).

•

Free cash flow before M&A was SEK 40.0 (-1.1) b. Working capital contributed strongly, benefiting from market mix and customer payment phasing, as well as the structural actions taken to improve supply chain efficiency.

•

Net cash at year-end 2024 was SEK 37.8 (7.8) b.

•

Return on capital employed was 2.5% (-10.7%).

•

A dividend for 2024 of SEK 2.85 (2.70) per share will be proposed to the AGM by the Board of Directors.

Börje Ekholm, President and CEO, said: “Q4 marks a strong end to 2024 for Ericsson. We progressed well against our strategic plan and generated strong free cash flow. Momentum around programmable networks for differentiated performance continued to build, and customers increasingly recognize the benefits of making mobile networks accessible through APIs. In Q4, we signed an open programmable network deal with MasOrange, a first for Europe.

We see further signs that the overall RAN market is now stabilizing, with strong growth in North America supporting a return to Networks sales growth in Q4. Progress on operational excellence continued, with commercial discipline and supply chain efficiency actions supporting a strong adjusted Group gross margin of 46.3% in the quarter. We are not yet at our long-term EBITA goal, but we are progressing towards it, supported by our strategic actions.

For 2025, in Networks we will continue to benefit from our product leadership position, with the best performance and energy efficiency in the industry. In Enterprise, our priority remains stabilizing the commercial performance in the current portfolio and driving growth in areas such as mission critical and enterprise private networks. Our commitment remains to put high-performing, programmable and differentiated networks at the center of the digitalization of enterprise and society.”

^*	Sales adjusted for the impact of acquisitions and divestments and effects of foreign currency fluctuations.

¹	Adjusted metrics exclude restructuring charges.



1 Ericsson \| Fourth quarter and full-year report 2024. January 24, 2025.


SEK b.	Q4 2024			Q4 2023			YoY change			Q3 2024			QoQ change			Jan-Dec 2024			Jan-Dec 2023			YoY change
Net sales		72.9			71.9			1	%		61.8			18	%		247.9			263.4			-6	%
Organic sales growth ¹ ²		—			—			2	%		—			—			—			—			-5	%
Gross margin ²		44.9	%		39.8	%		—			45.6	%		—			44.1	%		38.6	%		—
EBIT (loss)		8.0			5.8			36	%		5.8			38	%		4.3			-20.3			—
EBIT margin ²		10.9	%		8.1	%		—			9.3	%		—			1.7	%		-7.7	%		—
EBITA ²		8.6			6.7			29	%		6.2			39	%		22.1			14.9			49	%
EBITA margin ²		11.8	%		9.3	%		—			10.0	%		—			8.9	%		5.7	%		—
Net income (loss)		4.9			3.4			43	%		3.9			26	%		0.4			-26.1			—
EPS diluted, SEK		1.44			1.02			41	%		1.14			26	%		0.01			-7.94			—
Free cash flow before M&A ²		15.8			12.5			27	%		12.9			22	%		40.0			-1.1			—
Net cash, end of period ²		37.8			7.8			383	%		25.5			48	%		37.8			7.8			383	%

Adjusted financial measures ² ³
Adjusted gross margin		46.3	%		41.1	%		—			46.3	%		—			44.9	%		39.6	%		—
Adjusted EBIT (loss)		9.6			7.4			30	%		7.3			31	%		9.3			-13.8			—
Adjusted EBIT margin		13.1	%		10.3	%		—			11.9	%		—			3.8	%		-5.2	%		—
Adjusted EBIT excluding impairments⁴		9.8			7.4			33	%		7.3			34	%		24.7			18.1			36	%
Adjusted EBIT margin excluding impairments ⁴		13.4	%		10.3	%		—			11.9	%		—			9.9	%		6.9	%		—
Adjusted EBITA		10.2			8.2			25	%		7.8			32	%		27.2			21.4			27	%
Adjusted EBITA margin		14.1	%		11.4	%		—			12.6	%		—			11.0	%		8.1	%		—

¹	Sales adjusted for the impact of acquisitions and divestments and effects of foreign currency fluctuations.

²	Non-IFRS financial measures are reconciled at the end of this report to the most directly reconcilable line items in the financial statement.

³	Adjusted metrics exclude restructuring charges

⁴	Excluding the non-cash impairments recorded in the second and fourth quarter 2024, relating to the impairment of intangible assets mainly attributed to the Vonage acquisition.

Amounts marked with an ‘*’ in this document represent sales growth adjusted for the impact of acquisitions and divestments and effects of foreign currency fluctuations, also named organic sales growth. These numbers present performance on a comparable basis to improve the comparability of results between periods. Organic sales growth figures are non-IFRS measures. ‘Adjusted’ metrics are adjusted to exclude restructuring charges and are non-IFRS measures. This is a change in nomenclature only. See ‘Financial statements and other information’ for Alternative performance measures.



2 Ericsson \| Fourth quarter and full-year report 2024. January 24, 2025.

Group results


SEK b.	Q4 2024			Q4 2023			YoY change			Q3 2024			QoQ change			Jan-Dec 2024			Jan-Dec 2023			YoY change
Net sales		72.9			71.9			1	%		61.8			18	%		247.9			263.4			-6	%
Organic sales growth ¹		—			—			2	%		—			—			—			—			-5	%
Gross income		32.7			28.6			14	%		28.2			16	%		109.4			101.6			8	%
Gross margin		44.9	%		39.8	%		—			45.6	%		—			44.1	%		38.6	%		—
Research and development (R&D) expenses		-13.9			-13.0			—			-13.1			—			-53.5			-50.7			—
Selling and administrative expenses		-10.5			-9.9			—			-9.4			—			-51.7			-39.3			—
Impairment losses on trade receivables		0.0			0.2			—			0.1			—			-0.3			-0.3			—
Other operating income and expenses		-0.1			-0.1			—			0.0			—			0.6			-31.9			—
Share in earnings of associated companies		-0.3			0.1			—			0.0			—			-0.2			0.1			—
EBIT (loss)		8.0			5.8			36	%		5.8			38	%		4.3			-20.3			—
EBIT margin ¹		10.9	%		8.1	%		—			9.3	%		—			1.7	%		-7.7	%		—
EBITA ¹		8.6			6.7			29	%		6.2			39	%		22.1			14.9			49	%
EBITA margin¹		11.8	%		9.3	%		—			10.0	%		—			8.9	%		5.7	%		—
Financial income and expenses, net		-0.4			-0.9			—			-0.5			—			-1.7			-3.0			—
Income tax		-2.7			-1.5			—			-1.4			—			-2.2			-2.8			—
Net income (loss)		4.9			3.4			43	%		3.9			26	%		0.4			-26.1			—
Restructuring charges		-1.6			-1.5			—			-1.6			—			-5.0			-6.5			—

Adjusted financial measures ¹
Adjusted gross margin		46.3	%		41.1	%		—			46.3	%		—			44.9	%		39.6	%		—
Adjusted EBIT (loss)		9.6			7.4			30	%		7.3			31	%		9.3			-13.8			—
Adjusted EBIT margin		13.1	%		10.3	%		—			11.9	%		—			3.8	%		-5.2	%		—
Adjusted EBIT excluding impairments ²		9.8			7.4			33	%		7.3			34	%		24.7			18.1			36	%
Adjusted EBIT margin excluding impairments ²		13.4	%		10.3	%		—			11.9	%		—			9.9	%		6.9	%		—
Adjusted EBITA		10.2			8.2			25	%		7.8			32	%		27.2			21.4			27	%
Adjusted EBITA margin		14.1	%		11.4	%		—			12.6	%		—			11.0	%		8.1	%		—

¹	Non-IFRS financial measures are reconciled at the end of this report to the most directly reconcilable line items in the financial statements.

²	Excluding the non-cash impairments recorded in the second and fourth quarter 2024, relating to the impairment of intangible assets mainly attributed to the Vonage acquisition.

Fourth quarter comments

Net sales

Sales increased by 2%* YoY. Networks sales grew by 5%* with growth in market areas North America and Europe and Latin America, partly offset by lower customer investment levels in other market areas. Sales in Cloud Software and Services were stable*, with growth in software sales offset by declines in other areas. Sales in segment Enterprise declined by -7%* due to lower sales in Global Communications Platform, reflecting the decision to focus on more profitable market segments and to reduce activities in some countries.

Reported Group sales increased by 1% to SEK 72.9 (71.9) b. with currency negatively impacting sales by SEK -0.7 b. YoY. Networks sales grew by 4% to SEK 46.8 b., despite a currency impact of SEK -0.5 b. Cloud Software and Services sales declined by -1% to SEK 19.5 b., Enterprise sales declined by -9% to SEK 6.1 b. and sales in segment Other declined by -9% to SEK 0.6 b.

A new 5G patent licensing agreement was signed in the quarter and IPR licensing revenues increased to SEK 3.5 (2.7) b., part of which related to retroactive revenue for unlicensed periods. 82% of IPR licensing revenues are reported in segment Networks, with the remainder in Cloud Software and Services.

Gross income and margin

Adjusted gross margin increased to 46.3% (41.1%), with improvements in all segments. The increase was driven primarily by Networks, as a result of a favorable market mix and supply chain efficiency. Gross margin in Cloud Software and Services increased, driven by improved delivery performance and higher share of software sales. In Enterprise the gross margin benefited from cost actions and the prioritization of profitable market segments. In addition, gross margin was supported by higher IPR licensing revenues.

Adjusted gross income increased to SEK 33.7 (29.6) b., supported by sales growth in Networks, efficiency and cost actions and a favorable market mix. Enterprise gross income increased despite a sales decline, reflecting the focus on more profitable market segments.

Reported gross income increased to SEK 32.7 (28.6) b., with a gross margin of 44.9% (39.8%). Gross margin was impacted by SEK -1.0 (-1.0) b. of restructuring charges.

Research and development (R&D) expenses

R&D expenses increased to SEK -13.9 (-13.0) b., including restructuring charges of SEK -0.4 (-0.5) b. Excluding restructuring charges, R&D expenses increased by SEK -1.0 b. YoY, primarily due to higher variable incentive accruals in Q4 2024, reflecting a bonus outcome above target level in 2024, whereas the outcome was below target in 2023.

Selling and administrative (SG&A) expenses

SG&A expenses increased to SEK -10.5 (-9.9) b., including restructuring charges of SEK -0.2 (-0.1) b., and a SEK 0.4 b. benefit from lower amortization following the impairment of intangible assets in Q2 2024. The SG&A expenses increased due to higher variable incentive accruals, reflecting a bonus outcome above target level in 2024, whereas the outcome was below target in 2023. Investments also increased in Enterprise to improve operational effectiveness.

Other operating income and expenses

Other operating income and expenses were SEK -0.1 (-0.1) b.

Restructuring charges

Restructuring charges were SEK -1.6 (-1.5) b. mainly related to redundancy activities, including actions to right-size operations to align with a lower level of customer demand in some markets as well as actions to improve efficiency and to reduce certain activities. Gross income was impacted by SEK -1.0 (-1.0) b. of restructuring



3 Ericsson \| Fourth quarter and full-year report 2024. January 24, 2025.		Group results

charges, while operating expenses included SEK -0.6 (-0.6) b. of restructuring charges.

EBITA

Adjusted EBITA increased to SEK 10.2 (8.2) b., as higher gross income was partly offset by increased operating expenses, mainly due to higher variable incentive accruals. Adjusted EBITA margin was 14.1% (11.4%).

EBITA increased to SEK 8.6 (6.7) b. corresponding to an EBITA margin of 11.8% (9.3%).

EBIT

Adjusted EBIT increased to SEK 9.6 (7.4) b. Adjusted EBIT margin was 13.1% (10.3%). Amortization and impairment of acquisition-related intangible assets impacted EBIT by SEK -0.7 (-0.8) b.

Reported EBIT increased to SEK 8.0 (5.8) b. with an EBIT margin of 10.9% (8.1%).

Financial income and expenses, net

Financial income and expenses were SEK -0.4 (-0.9) b. Financial net improved as a result of a higher net cash position. The currency hedge effect was SEK 0.0 (-0.2) b.

Income tax

Taxes were SEK -2.7 (-1.5) b.

Net income

Net income increased to SEK 4.9 (3.4) b. Diluted EPS increased to SEK 1.44 (1.02).

Full-year comments

Net sales

Sales declined by -5%* YoY. Sales declined by -6%* in Networks and by -1%* in Cloud Software and Services, while sales in Enterprise declined by -2%*. Sales increased by 24%* in market area North America but were materially lower in market area South East Asia, Oceania and India, as customer investment levels in India have normalized after a record year in 2023. Sales also declined organically in the other market areas.

Reported Group sales decreased by -6% YoY to SEK 247.9 (263.4) b. with a negative currency impact of SEK -3.3 b. Sales in Networks declined by -8% to SEK 158.2 b., sales in Cloud Software and Services declined by -2% to SEK 62.6 b. and sales in Enterprise declined by -3% to SEK 24.9 b. Sales in segment Other declined by -14% to SEK 2.2 b. IPR licensing revenues increased to SEK 14.0 (11.1) b.

The share of hardware in the sales mix was 38% (38%), software 23% (22%) and services 39% (40%).

Gross income and margin

Adjusted gross income increased to SEK 111.4 (104.4) b. while adjusted gross margin increased to 44.9% (39.6%). The improvement in gross margin was driven by a more favorable market mix, cost-reduction initiatives, higher IPR licensing revenues, and the decision to focus on more profitable market segments in Enterprise.

Reported gross income increased to SEK 109.4 (101.6) b., with a gross margin of 44.1% (38.6%).

Research and development (R&D) expenses

R&D expenses increased to SEK -53.5 (-50.7) b., including restructuring charges of SEK -2.1 (-2.4) b. Excluding restructuring charges, R&D expenses increased by SEK -3.2 b. YoY, including a SEK -1.4 b. impact relating to the impairment of intangible assets, as well as a SEK -0.7 b. impact from a lower rate of capitalization of

development expenses in Enterprise. Excluding these items, the benefit from cost actions offset salary increases, and partly offset higher variable incentive accruals. The higher incentive accruals resulted from a bonus outcome above target level in 2024, whereas the outcome was below target in 2023.

Selling and administrative (SG&A) expenses

SG&A expenses increased to SEK -51.7 (-39.3) b., including a SEK -12.6 b. impact relating to the impairment of intangible assets in the year, restructuring charges of SEK -0.8 (-1.3) b., and a SEK 0.4 b. benefit from lower amortization following the impairment of intangible assets. Excluding these items, SG&A expenses increased by SEK -0.6 b. primarily reflecting investments in segment Enterprise to improve operational effectiveness, as well as higher variable incentive accruals, with salary increases offset by cost efficiency actions. The higher incentive accruals resulted from a bonus outcome above target level in 2024, whereas the outcome was below target in 2023.

Other operating income and expenses

Other operating income and expenses were SEK 0.6 (-31.9) b., impacted by non-cash impairment charges of SEK -1.3 (-31.9) b. mainly related to the Vonage acquisition, and a one-time gain of SEK 1.9 b. reported in Q1 2024.

Restructuring charges

Restructuring charges were SEK -5.0 (-6.5) b. mainly related to redundancy activities, including actions to right-size operations to align with a lower level of customer demand in some markets as well as actions to improve efficiency. Gross income included SEK -2.0 (-2.8) b. of restructuring charges, while operating expenses included SEK -3.0 (-3.7) b. of restructuring charges.

EBITA

Adjusted EBITA increased to SEK 27.2 (21.4) b., as higher gross income was partly offset by increased operating expenses. The adjusted EBITA margin was 11.0% (8.1%).

EBITA increased to SEK 22.1 (14.9) b. corresponding to an EBITA margin of 8.9% (5.7%).

EBIT

Adjusted EBIT increased to SEK 9.3 (-13.8) b. with a margin of 3.8% (-5.2%) including a SEK -15.3 (-31.9) b. non-cash impairment charge mainly attributed to the Vonage acquisition. The amortization of acquisition-related intangible assets was SEK -2.5 (-3.3) b. Reported EBIT (loss) increased to SEK 4.3 (-20.3) b. with an EBIT margin of 1.7% (-7.7%).

Financial income and expenses, net

Financial income and expenses were SEK -1.7 (-3.0) b., benefiting from a higher net cash position. The currency hedge effect was SEK 0.1 (-0.2) b. The USD strengthened against the SEK between December 31, 2023 (SEK/USD rate 10.01) and December 31, 2024 (SEK/USD rate 10.99).

Income tax

Taxes were SEK -2.2 (-2.8) b. The effective tax rate excluding impairment charges, mainly goodwill and intangible assets related to Vonage, was 28% for 2024. The effective tax rate for 2023 was 32%, excluding the impairment of goodwill related to Vonage.

Net income

Net income increased to SEK 0.4 (-26.1) b. Diluted EPS increased to SEK 0.01 (-7.94).

Employees

The number of employees on December 31, 2024, was 94,236 compared with 99,952 on December 31, 2023.



4 Ericsson \| Fourth quarter and full-year report 2024. January 24, 2025.		Group results

Market area sales


SEK b.	Q4 2024		Q4 2023		YoY change			YoY organic growth			Q3 2024		QoQ change			Jan-Dec 2024		Jan-Dec 2023		YoY change			YoY organic growth
North America		22.0		14.4		53	%		54	%		20.4		8	%		72.9		59.2		23	%		24	%
Europe and Latin America		19.4		19.2		1	%		2	%		15.2		28	%		63.4		64.9		-2	%		-2	%
South East Asia, Oceania and India		8.4		11.8		-28	%		-28	%		7.7		10	%		32.4		53.3		-39	%		-38	%
North East Asia		7.1		9.1		-22	%		-22	%		3.7		92	%		18.8		23.9		-22	%		-19	%
Middle East and Africa		6.3		7.8		-19	%		-18	%		4.9		29	%		20.8		23.7		-13	%		-12	%
Other		9.7		9.6		1	%		3	%		10.0		-3	%		39.6		38.2		4	%		6	%
Of which IPR		3.5		2.7		32	%		—			3.5		1	%		14.0		11.1		26	%		—
Total		72.9		71.9		1	%		2	%		61.8		18	%		247.9		263.4		-6	%		-5	%

Fourth quarter comments

Market Area North America

Sales increased by 54%* YoY. Networks sales increased by 70%*, benefiting from contract wins, increased network investments by some large customers, and strong year-end software demand. Cloud Software and Services sales increased by 11%* reflecting timing of project deliverables. Reported sales increased by 53% YoY.

Market Area Europe and Latin America

Sales increased by 2%* YoY. Sales in Europe increased, despite a challenging market environment, benefiting from market share gains and strong deliveries. In Latin America, sales decreased due to continued intense competition and lower customer network investments. Reported sales increased by 1% YoY. In the quarter, Europe’s first contract for high-performing programmable network integration was signed with MasOrange.

Market Area South East Asia, Oceania and India

Sales decreased by -28%* YoY. Networks sales declined primarily due to lower customer investment levels in India after a record 2023. Cloud Software and Services sales declined, reflecting project deliverables in the prior year and the descoping of a managed services contract. Reported sales declined by -28% YoY. In the quarter, a multi-year contract extension for 4G and 5G RAN was announced with Bharti Airtel in India and a majority share of nationwide 5G deployment for VNPT in Vietnam was awarded.

Market Area North East Asia

Sales declined by -22%* YoY. Networks sales declined due to reduced customer investments in some 5G frontrunner markets. Cloud Software and Services sales declined due to timing of project deliverables. Reported sales declined by -22% YoY.

Market Area Middle East and Africa

Sales declined by -18%* YoY. Networks sales declined in the Middle East, as investment levels moderated following recent 5G build-out, and in Africa as macroeconomic headwinds continued. Cloud Software and Services sales declined, primarily due to timing of project deliverables. Reported sales decreased by -19% YoY.

Market Area Other

Market area Other primarily includes IPR licensing revenues and almost all sales in segment Enterprise. Sales increased by 3%* YoY driven by IPR licensing revenues, partly offset by the decline in Enterprise sales. Reported sales increased by 1% YoY.

IPR

A patent licensing agreement renewal was signed in the quarter and IPR licensing revenues increased to SEK 3.5 (2.7) b., part of which related to retroactive revenue for unlicensed periods.

Full-year comments

Market Area North America

Sales increased by 24%* YoY with Networks sales increasing by 31%* as a result of contract wins and selective network investments by some large customers. Cloud Software and Services sales increased by 2%*. Reported sales increased by 23% YoY.

Market Area Europe and Latin America

Sales decreased by -2%* YoY. Sales in Europe were stable with lower customer capex spend, offset by strong customer deliveries and market share gains. Sales in Latin America declined due to increased price competition and lower customer network investments. Reported sales decreased by -2% YoY.

Market Area South East Asia, Oceania and India

Sales decreased by -38%* YoY, primarily reflecting more normalized Network investment levels in India, after a record year in 2023. Sales in South East Asia declined reflecting lower customer investment levels due to market consolidation and macroeconomic uncertainty, partly offset by recent contract wins. Cloud Software and Services sales declined, reflecting timing of project deliverables as well as descoping and exit of managed services contracts. Reported sales declined by -39% YoY.

Market Area North East Asia

Sales declined by -19%* YoY. Networks sales declined due to reduced customer investments in some 5G frontrunner markets. Cloud Software and Services sales declined, reflecting timing of project deliverables and descoping of some low-margin contracts. Reported sales declined by -22% YoY.

Market Area Middle East and Africa

Sales declined by -12%* YoY. Networks sales declined reflecting lower Middle East investments, following an accelerated 5G rollout in 2023. In Africa, macroeconomic headwinds and currency devaluations impacted customer investment levels, and price competition remained intense. Cloud Software and Services sales declined due to timing of project deliverables. Reported sales decreased by -13% YoY.

Market Area Other

Market area Other primarily includes IPR licensing revenues and almost all sales in segment Enterprise. Sales increased by 6%* YoY driven by IPR licensing revenues, partly offset by the decline in Enterprise sales. Reported sales increased by 4% YoY.

IPR

IPR licensing revenues increased to SEK 14.0 (11.1) b. in 2024 as a result of new 5G license agreements and renewals. The increase includes retroactive revenue from previously unlicensed periods. Opportunities to further grow IPR licensing revenues remain.



5 Ericsson \| Fourth quarter and full-year report 2024. January 24, 2025.		Market area sales

Segment results

Mobile Networks – Segment Networks


SEK b.	Q4 2024			Q4 2023			YoY change			Q3 2024			QoQ change			Jan-Dec 2024			Jan-Dec 2023			YoY change
Net sales		46.8			45.0			4	%		40.0			17	%		158.2			171.4			-8	%
Of which IPR licensing revenues		2.9			2.2			32	%		2.9			1	%		11.4			9.1			26	%
Organic sales growth		—			—			5	%		—			—			—			—			-6	%
Gross income		22.3			18.6			20	%		19.3			15	%		73.6			68.0			8	%
Gross margin		47.7	%		41.4	%		—			48.3	%		—			46.6	%		39.6	%		—
EBIT		9.3			6.1			52	%		7.5			24	%		25.7			19.4			32	%
EBIT margin		19.8	%		13.6	%		—			18.7	%		—			16.2	%		11.3	%		—
EBITA		9.4			6.1			53	%		7.5			24	%		25.9			19.5			33	%
EBITA margin		20.0	%		13.6	%		—			18.8	%		—			16.3	%		11.4	%		—
Restructuring charges		-0.7			-1.3			—			-0.6			—			-1.9			-4.4			—
Adjusted financial measures
Adjusted gross margin		49.1	%		43.2	%		—			48.7	%		—			47.2	%		40.8	%		—
Adjusted EBIT		10.0			7.4			35	%		8.1			24	%		27.6			23.8			16	%
Adjusted EBIT margin		21.4	%		16.5	%		—			20.2	%		—			17.4	%		13.9	%		—
Adjusted EBITA		10.1			7.4			36	%		8.1			25	%		27.8			23.9			16	%
Adjusted EBITA margin		21.6	%		16.5	%		—			20.3	%		—			17.5	%		14.0	%		—

Breakdown of sales into products, services and IPR licensing is available in the back-end tables.

Fourth quarter comments

Net sales

Sales increased by 5%* YoY. Sales grew in market areas North America and Europe and Latin America but declined in the other market areas. Reported sales increased by 17% sequentially, primarily driven by growth in market areas Europe and Latin America and North East Asia, as well as continued good growth in market area North America. Reported sales increased by 4% YoY to SEK 46.8 (45.0) b.

Sales in market area North America increased by 70%* YoY, benefiting from contract wins and increased network investments by some large customers, while sales in market area Europe and Latin America grew by 3%*. Sales in the other market areas decreased materially, particularly in market area South East Asia, Oceania and India, as operator capex investments in India normalized after a record 2023. Sales were supported by increased IPR licensing revenues, benefiting from new 5G licensing agreements signed in each of Q1-Q4 2024.

Gross income and margin

Adjusted gross margin increased to 49.1% (43.2%), benefiting from a favorable market mix, as well as improved supply chain effectiveness. In addition, gross margin was supported by higher IPR licensing revenues. Adjusted gross income increased to SEK 23.0 (19.4) b.

EBITA

Adjusted EBITA increased to SEK 10.1 (7.4) b. with an adjusted EBITA margin of 21.6% (16.5%). The benefit of higher gross income and continued efficiency improvements in operating expenses was partly offset by an increase in variable incentive accruals, reflecting a bonus outcome above target level in 2024 and below target in 2023.

Full-year comments

Net sales

Sales decreased by -6%* YoY, as strong sales growth in market area North America was offset by lower sales in the other market areas, where operators largely remained cautious with their investments. Reported sales decreased by -8% YoY to SEK 158.2 (171.4) b.

Sales in market area North America increased by 31%* YoY, as a result of contract wins and selective network investments by some large customers. Sales in the other market areas decreased. Sales declined by -45%* in market area South East Asia, Oceania and India, primarily due to more normalized investment levels in India following a record year in 2023. Sales were supported by increased IPR licensing revenues, benefiting from new 5G licensing agreements signed in each of Q1-Q4 2024.

Gross income and margin

Adjusted gross margin increased to 47.2% (40.8%), as a result of a favorable market mix, continued cost-reduction initiatives and improved supply chain effectiveness. In addition, gross margin was supported by higher IPR licensing revenues. Adjusted gross income increased to SEK 74.7 (69.9) b.

EBITA

Adjusted EBITA increased to SEK 27.8 (23.9) b. with an adjusted EBITA margin of 17.5% (14.0%). Higher gross income and efficiency improvements were partly offset by an increase in variable incentive accruals, reflecting a bonus outcome above target level in 2024 and below target in 2023. Strategic R&D investments continued to build high-performing programmable networks to maintain technology leadership.



6 Ericsson \| Fourth quarter and full-year report 2024. January 24, 2025.		Segment results

Mobile Networks – Segment Cloud Software and Services


SEK b.	Q4 2024			Q4 2023			YoY change			Q3 2024			QoQ change			Jan-Dec 2024			Jan-Dec 2023			YoY change
Net sales		19.5			19.6			-1	%		15.0			30	%		62.6			63.6			-2	%
Of which IPR licensing revenues		0.6			0.5			32	%		0.6			1	%		2.5			2.0			26	%
Organic sales growth		—			—			0	%		—			—			—			—			-1	%
Gross income		7.2			7.2			1	%		5.5			31	%		23.0			22.1			4	%
Gross margin		37.2	%		36.7	%		—			37.0	%		—			36.8	%		34.7	%		—
EBIT (loss)		1.1			1.8			-40	%		-0.4			—			-0.4			-0.2			—
EBIT margin		5.6	%		9.4	%		—			-3.0	%		—			-0.7	%		-0.3	%		—
EBITA (loss)		1.1			1.8			-40	%		-0.4			—			-0.4			-0.2			—
EBITA margin		5.7	%		9.4	%		—			-2.9	%		—			-0.6	%		-0.3	%		—
Restructuring charges		-0.7			-0.2			—			-0.9			—			-2.4			-1.9			—
Adjusted financial measures
Adjusted gross margin		39.0	%		37.3	%		—			38.7	%		—			38.2	%		36.0	%		—
Adjusted EBIT		1.8			2.0			-11	%		0.4			327	%		2.0			1.7			17	%
Adjusted EBIT margin		9.2	%		10.3	%		—			2.8	%		—			3.2	%		2.7	%		—
Adjusted EBITA		1.8			2.0			-11	%		0.4			322	%		2.0			1.7			16	%
Adjusted EBITA margin		9.3	%		10.4	%		—			2.9	%		—			3.2	%		2.7	%		—

Breakdown of sales into products, services and IPR licensing is available in the back-end tables.

Fourth quarter comments

Net sales

Sales were stable* YoY, with sales growth in market area North America offset by sales declines in the other market areas. Reported sales increased by 30% sequentially, primarily driven by market areas Europe and Latin America and North America. Reported sales decreased by -1% YoY to SEK 19.5 (19.6) b.

Sales grew by 11%* YoY in market area North America reflecting timing of project deliverables. Sales were stable in market area Europe and Latin America but declined in the other market areas, largely reflecting the timing of project deliverables. Sales were supported by increased IPR licensing revenues, benefiting from new 5G licensing agreements signed in 2024.

Gross income and margin

Adjusted gross margin increased to 39.0% (37.3%) as a result of improved delivery performance and a higher share of software sales. Gross margin was also supported by higher IPR licensing revenues. Adjusted gross income increased to SEK 7.6 (7.3) b.

EBITA

Adjusted EBITA declined to SEK 1.8 (2.0) b. with an adjusted EBITA margin of 9.3% (10.4%). The improvement in gross income and the effect of cost-efficiency measures in operating expenses were offset by an increase in variable incentive accruals, reflecting a bonus outcome above target level in 2024.

Full-year comments

Net sales

Sales declined by -1%* YoY, with moderate growth in core networks offset by lower services sales mainly due to timing of project deliverables. In addition, managed services contracts have been descoped in some markets. Reported sales decreased by -2% YoY to SEK 62.6 (63.6) b. with services sales accounting for 64% (66%) of net sales.

Sales grew in market areas North America and Europe and Latin America as a result of timing of project deliverables, while sales declined in other market areas. Sales were supported by increased IPR licensing revenues, as a result of new 5G licensing agreements signed in 2024.

Gross income and margin

Adjusted gross margin increased to 38.2% (36.0%) benefiting from improved delivery performance, cost actions and continued focus on commercial discipline. Gross margin was also supported by higher IPR licensing revenues. Adjusted gross income increased to SEK 23.9 (22.9) b.

EBITA

Adjusted EBITA increased to SEK 2.0 (1.7) b. with an adjusted EBITA margin of 3.2% (2.7%). Higher gross income, efficiency improvements and cost actions were partly offset by an increase in variable incentive accruals, reflecting a bonus outcome above target level in 2024, as well as investments in the 5G portfolio and in resilience. Strategy execution continues, with a focus on commercial discipline, acceleration of automation, and scalable software deployment.



7 Ericsson \| Fourth quarter and full-year report 2024. January 24, 2025.		Segment results

Segment Enterprise


SEK b.	Q4 2024			Q4 2023			YoY change			Q3 2024			QoQ change			Jan-Dec 2024			Jan-Dec 2023			YoY change
Net sales		6.1			6.7			-9	%		6.3			-4	%		24.9			25.7			-3	%
Of which Global Comms Platform (Vonage)		3.4			4.1			-17	%		3.8			-11	%		14.8			16.4			-10	%
Of which Enterprise Wireless Solutions		1.4			1.2			19	%		1.3			10	%		4.9			4.2			17	%
Organic sales growth		—			—			-7	%		—			—			—			—			-2	%
Gross income		3.3			3.0			11	%		3.3			0	%		12.8			12.0			6	%
Gross margin		54.3	%		44.3	%		—			52.3	%		—			51.4	%		46.7	%		—
EBIT (loss)		-1.9			-1.6			—			-1.2			—			-22.1			-38.3			—
EBIT margin		-30.8	%		-24.5	%		—			-19.0	%		—			-88.8	%		-148.9	%		—
EBITA (loss)		-1.3			-0.8			—			-0.8			—			-4.5			-3.3			—
EBITA margin		-21.8	%		-12.4	%		—			-13.0	%		—			-18.0	%		-12.7	%		—
Restructuring charges		-0.2			0.0			—			0.0			—			-0.5			-0.2			—
Adjusted financial measures
Adjusted gross margin		54.3	%		44.3	%		—			52.4	%		—			51.5	%		46.7	%		—
Global Comms Platform (Vonage)		49.6	%		42.5	%		—			44.0	%		—			44.8	%		42.1	%		—
Enterprise Wireless Solutions		57.5	%		36.1	%		—			60.7	%		—			58.8	%		52.2	%		—
Adjusted EBIT (loss)		-1.7			-1.6			—			-1.2			—			-21.6			-38.2			—
Adjusted EBIT margin		-28.3	%		-24.1	%		—			-18.4	%		—			-86.8	%		-148.2	%		—
Adjusted EBIT (loss)excluding impairments ¹		-1.6			-1.6			—			-1.2			—			-6.3			-6.3			—
Adjusted EBIT margin excluding impairments ¹		-25.6	%		-24.1	%		—			-18.4	%		—			-25.3	%		-24.3	%		—
Adjusted EBITA (loss)		-1.2			-0.8			—			-0.8			—			-4.0			-3.1			—
Of which Global Comms Platform (Vonage) ²		-0.6			0.3			—			-0.4			—			-2.0			0.3			—
Of which Enterprise Wireless Solutions ²		-0.5			-1.1			—			-0.5			—			-2.2			-3.5			—
Adjusted EBITA margin		-19.3	%		-12.0	%		—			-12.4	%		—			-16.0	%		-12.0	%		—

¹	Excluding the non-cash impairments recorded in the second and fourth quarter 2024, relating to the impairment of intangible assets mainly attributed to the Vonage acquisition.

²	Common costs are included at segment level only (not distributed within the segment).

Fourth quarter comments

Net sales

Sales declined by -7%* YoY, with lower sales in Global Communications Platform partly offset by growth in Enterprise Wireless Solutions. Reported sales decreased by -9% YoY to SEK 6.1 (6.7) b.

Reported sales growth in Enterprise Wireless Solutions accelerated to 19% YoY, reflecting strong growth in private 5G and neutral host solutions. WWAN and Security solutions billings growth improved YoY, driven by strong customer renewals and recent product launches.

Reported sales in Global Communications Platform declined by -17% YoY, negatively impacted by the decision to focus on more profitable market segments and to reduce activities in some countries.

Gross income and margin

Adjusted gross margin increased to 54.3% (44.3%), benefiting from the decision to focus on more profitable market segments. Adjusted gross income increased to SEK 3.3 (3.0) b. reflecting higher sales and gross income in Enterprise Wireless Solutions.

EBITA (loss)

Adjusted EBITA (loss) was SEK -1.2 (-0.8) b. The decrease primarily reflects non-recurring impacts, in part related to the exit of certain businesses, as well as increased investments to improve operational effectiveness. Adjusted EBITA margin was -19.3% (-12.0%).

Full-year comments

Net sales

Sales declined by -2%* YoY, with lower sales in Global Communications Platform partly offset by growth in Enterprise Wireless Solutions. Reported sales decreased by -3% YoY to SEK 24.9 (25.7) b.

Reported sales in Enterprise Wireless Solutions grew by 17% YoY, benefiting from good demand for private 5G and neutral host solutions as well as customer contract renewals in WWAN and Security solutions. Reported sales in Global Communications Platform declined -10% YoY, negatively impacted by the decision to focus on more profitable market segments and to reduce activities in some countries, as well as by a low-margin customer contract loss in Q4 2023. The negative impact was partly offset by growth in higher value market segments, including call center solutions.

Gross income and margin

Adjusted gross margin increased to 51.5% (46.7%), supported by an improved business mix following the decision to focus on more profitable markets and products. Adjusted gross income improved to SEK 12.8 (12.0) b., benefiting from sales growth in Enterprise Wireless Solutions and the focus on more profitable market segments.

EBITA (loss)

Adjusted EBITA (loss) declined to SEK -4.0 (-3.1) b. The decrease was primarily due to increased investments to improve operational effectiveness in Global Communications Platform and a lower rate of capitalization of development expenses, partly offset by operational efficiency improvements in Enterprise Wireless Solutions and in Technologies and New Businesses. Adjusted EBITA margin was -16.0% (-12.0%).



8 Ericsson \| Fourth quarter and full-year report 2024. January 24, 2025.		Segment results

Segment Other


SEK b.	Q4 2024			Q4 2023			YoY change			Q3 2024			QoQ change			Jan-Dec 2024			Jan-Dec 2023			YoY change
Net sales		0.6			0.6			-9	%		0.5			12	%		2.2			2.5			-14	%
Organic sales growth		—			—			-10	%		—			—			—			—			-15	%
Gross income		-0.2			-0.2			—			0.0			—			-0.1			-0.5			—
Gross margin		-29.5	%		-26.0	%		—			1.8	%		—			-4.2	%		-18.2	%		—
EBIT (loss)		-0.5			-0.5			—			-0.1			—			1.2			-1.2			—
EBIT margin		-93.5	%		-72.9	%		—			-14.6	%		—			53.6	%		-45.5	%		—
EBITA (loss)		-0.5			-0.5			—			-0.1			—			1.2			-1.2			—
EBITA margin		-93.5	%		-72.9	%		—			-14.6	%		—			53.7	%		-45.4	%		—
Restructuring charges		0.0			0.0			—			-0.1			—			-0.2			0.0			—
Adjusted financial measures
Adjusted gross margin		-22.7	%		-22.8	%		—			5.1	%		—			-1.5	%		-17.7	%		—
Adjusted EBIT (loss)		-0.5			-0.4			—			0.0			—			1.3			-1.2			—
Adjusted EBIT margin		-85.9	%		-70.0	%		—			-1.4	%		—			61.3	%		-46.0	%		—
Adjusted EBITA (loss)		-0.5			-0.4			—			0.0						1.3			-1.2			—
Adjusted EBITA margin		-85.9	%		-70.0	%		—			-1.4	%		—			61.4	%		-45.9	%		—

Fourth quarter comments

Net sales

Reported sales were stable at SEK 0.6 (0.6) b., despite the divestment of the IoT business in 2023, due to increased sales in the media businesses.

Gross income and margin

Adjusted gross income was stable at SEK -0.1 (-0.1) b. Adjusted gross margin remained at -22.7% (-22.8%).

EBITA (loss)

Adjusted EBITA (loss) was SEK -0.5 (-0.4) b. primarily reflecting the accelerated recognition of losses in the media businesses and an impairment in Ericsson Ventures.

Full-year comments

Net sales

Reported sales declined to SEK 2.2 (2.5) b., primarily due to the divestment of the IoT business in 2023 and lower sales in the media businesses.

Gross income and margin

Adjusted gross income improved to SEK 0.0 (-0.4) b. mainly reflecting higher asset impairments in 2023. Adjusted gross margin increased to -1.5% (-17.7%).

EBITA (loss)

Adjusted EBITA (loss) was SEK 1.3 (-1.2) b., with the increase mainly related to a one-time gain of SEK 1.9 b. from the resolution of a commercial dispute, as well as lower operational cost due to the divestment of the IoT business in 2023.



9 Ericsson \| Fourth quarter and full-year report 2024. January 24, 2025.		Segment results

Cash flow and financial position


Free cash flow bridge, SEK b.	Q4 2024		Q4 2023		Q3 2024		Jan-Dec 2024		Jan-Dec 2023
Adjusted EBIT (loss)		9.6		7.4		7.3		9.3		-13.8

Depreciation, amortization and impairment losses		2.8		3.1		2.3		25.7		43.9

Restructuring charges		-1.6		-1.5		-1.6		-5.0		-6.5

Changes in working capital ¹⁾		7.8		6.6		7.8		22.8		-12.0

Interest paid/ received,taxes paid, and other		-1.1		-1.0		-1.5		-6.6		-4.4

Cash flow from operating activities		17.5		14.5		14.4		46.3		7.2

Capex net and other investing activities		-1.1		-1.2		-0.8		-3.7		-5.4

Repayment of lease liabilities		-0.6		-0.8		-0.6		-2.5		-2.9

Free cash flow before M &A		15.8		12.5		12.9		40.0		-1.1

M&A		-0.1		-0.2		-0.1		-0.3		-2.1

Free cash flow after M &A		15.7		12.2		12.9		39.7		-3.2

Cash flow from operating activities		17.5		14.5		14.4		46.3		7.2
Cash flow from investing activities		-8.3		-6.8		-0.3		-16.0		-8.7
Cash flow from financing activities		-5.4		3.7		-4.2		-23.9		1.0


SEK b.	Dec 31 2024			Dec 31 2023			Sep 30 2024
Gross cash		75.9			54.7			62.2

-Borrowings, current		6.1			17.7			3.1
-Borrowings, non-current		31.9			29.2			33.5

Net cash		37.8			7.8			25.5

Equity		93.0			97.4			85.4
Total assets		292.4			297.0			272.5
Capital turnover (times)		1.5			1.4			1.4
Return on capital employed (%)		2.5	%		-10.7	%		-2.9	%

Non-IFRS financial measures are reconciled at the end of this report to the most directly reconcilable line items in the financial statements.

¹	Defined as Changes in operating net assets.

Fourth quarter comments

Cash flow

Free cash flow before M&A was SEK 15.8 (12.5) b. benefiting from strong earnings and lower working capital. The reduction in working capital was a result of a favorable market mix, and strong collections, supported by early payments from customers, as well as further efficiency improvements in supply chain management.

Cash flow from investing activities was SEK -8.3 (-6.8) b., mainly driven by investments in interest-bearing securities following the increase in gross cash.

Cash flow from financing activities was SEK -5.4 (3.7) b. including the SEK -4.5 b. payment of the second dividend installment.

Financial position

Gross cash increased sequentially by SEK 13.7 b. to SEK 75.9 b. Ericsson has unutilized committed credit facilities of SEK 33.0 b. (USD 3.0 b.).

Net cash increased sequentially by SEK 12.3 b. to SEK 37.8 b. driven by positive free cash flow after M&A, partly offset by dividends paid.

Full-year comments

Cash flow

Free cash flow before M&A was SEK 40.0 (-1.1) b. benefiting from strong earnings and a significant reduction in working capital. The reduction in working capital was a result of a favorable market mix, following the completion of network rollouts in India and strong sales growth in market area North America. Working capital also benefited from strong collections, supported by early payments from customers, and efficient supply chain management.

Cash flow from investing activities was SEK -16.0 (-8.7) b., mainly driven by investments in interest-bearing securities following the increase in gross cash.

Cash flow from financing activities was SEK -23.9 (1.0) b. including dividends paid (SEK -9.2 b.), the repayment of a maturing EUR 500 m. bond, USD 400 m. of a liquidity revolving credit facility, and a USD 281 m. loan. This was partly offset by the disbursement of two loans of USD 184 m. and USD 108 m., respectively.

Financial position

Gross cash increased by SEK 21.2 b. to SEK 75.9 b. Ericsson had unutilized committed credit facilities of SEK 33.0 b. (USD 3.0 b.) as of December 31, 2024.

The average maturity of parent company borrowings was 3.6 years as of December 31, 2024, compared with 3.2 years as of December 31, 2023.

Net cash increased by SEK 30.0 b. to SEK 37.8 b. driven by positive free cash flow after M&A, offset by dividends paid.

Liabilities for post-employment benefits decreased in the year to SEK 24.4 b. from SEK 26.2 b. The Swedish defined benefit obligation (DBO) was calculated using a discount rate based on the yields of Swedish government bonds. If the discount rate had been based on Swedish covered mortgage bonds, the liability for post-employment benefits would have been approximately SEK 13.9 b. (SEK 10.5 b. lower than current DBO).



10 Ericsson \| Fourth quarter and full-year report 2024. January 24, 2025.		Cash flow and financial position

Key data points

Market

Dell’Oro estimates that the global RAN equipment market will grow by 0% to +2% in 2025. North America is expected to grow by +5% to +10%, Europe to decline/grow by -5 to +5% and Mainland China to decline by -10% to -20%.

Source: Dell’Oro Mobile RAN quarterly report 3Q24, Nov 2024.

Ericsson

Net sales

Reported average seasonality, last 3 years (2022–2024), %.


	Q4gQ1			Q1gQ2			Q2gQ3			Q3gQ4
Networks		-24	%		+8	%		+3	%		+16	%
Cloud Software and Services		-33	%		+15	%		+1	%		+33	%

Net sales may show large variations between quarters, including currency changes.

Currency exposure

Rule of thumb: A 10% appreciation/depreciation in the USD vs. SEK would have a positive/negative impact of approximately 5% on net sales.

Amortization of intangible assets

Amortization of intangible assets is expected to be around SEK -0.5 b. per quarter, of which approximately SEK -0.4 b. related to segment Enterprise.

Restructuring charges

Restructuring charges for 2025 are expected to remain at elevated levels.

Segments

Networks

Sales growth in Q1 2025 is expected to be broadly similar to 3-year average seasonality.

Adjusted gross margin in Q1 is expected to be in the range of 47%-49%.

Cloud Software and Services

Sales growth in Q1 2025 is expected to be to be broadly similar to 3-year average seasonality.



11 Ericsson \| Fourth quarter and full-year report 2024. January 24, 2025.		Key data points

Parent Company

Income after financial items January – December 2024, was SEK 6.6 (-0.7) b.

At the end of the year, gross cash (cash, cash equivalents plus interest-bearing securities, current and non-current) amounted to SEK 58.7 (34.9) b.

There was an increase in intercompany lending of SEK 3.4 b. and a decrease in intercompany borrowing of SEK 2.0 b. in the quarter.

The Parent Company has recognized dividends from subsidiaries of SEK 13.8 (15.7) b. in the quarter.

At the end of the year, non-restricted equity amounted to SEK 22.3 (27.6) b., and total equity amounted to SEK 70.6 (75.8) b.

The holding of treasury stock on December 31, 2024, was 15,579,561 Class B shares.



12 Ericsson \| Fourth quarter and full-year report 2024. January 24, 2025.		Parent Company

Dividend, AGM, and Annual Report

Dividend proposal

The Board of Directors proposes to the Annual General Meeting a dividend to the shareholders of SEK 2.85 (2.70) per share for the financial year 2024, representing a total dividend of approximately SEK 9.5 (9.0) b. The dividend is proposed to be paid in two installments, SEK 1.43 per share with the record date March 27, 2025, and SEK 1.42 per share with the record date September 29, 2025. Should the Annual General Meeting decide in favor of the proposal, payment of the dividend is expected to be made on April 1, 2025, and on October 2, 2025. The dividend considers this year’s earnings and balance sheet structure, as well as coming years’ business plans and expected economic development.

Ericsson Annual General Meeting

The Annual General Meeting of shareholders will be held on March 25, 2025. Additional information about the Annual General Meeting of shareholders will be made available on Ericsson’s website.

Annual Report

The annual report will be made public and available on the Ericsson website www.ericsson.com.



13 Ericsson \| Fourth quarter and full-year report 2024. January 24, 2025.		Dividend, AGM, and Annual Report

Other information

Legal proceedings not involving governmental authorities

In August 2022, a civil lawsuit was filed in the United States District Court for the District of Columbia against Telefonaktiebolaget LM Ericsson and Ericsson Inc. (collectively, the “Ericsson defendants”). The lawsuit was brought by US military service members, employees of US government contractors and other civilians who were killed or injured in terrorist attacks in Iraq, Afghanistan and Syria from 2005 to 2021, as well as by their family members. The lawsuit asserts claims against the Ericsson defendants under the US Anti-Terrorism Act alleging that the Ericsson defendants made payments that ultimately aided the terrorist organizations that committed, planned or authorized the attacks. In November 2022, the Ericsson defendants filed a motion to dismiss the complaint. On December 20, 2022, plaintiffs filed an amended complaint, which added additional plaintiffs, including a plaintiff injured in Turkey, and also named Ericsson AB (collectively with the Ericsson defendants, the “Ericsson corporate defendants”), CEO Börje Ekholm and a former employee (who has not been served with process) as additional defendants and also asserted additional allegations and claims. In March 2023, the Ericsson corporate defendants and Mr. Ekholm filed motions to dismiss the amended complaint. Plaintiffs filed their oppositions to defendants’ motions to dismiss the amended complaint in June 2023, and defendants filed reply briefs in support of their motions to dismiss in July 2023. All briefing has been submitted, and resolution of the matter is pending with the District Court. All defendants will continue to vigorously defend this matter.

In February 2024, a second civil lawsuit also alleging violations of the US Anti-Terrorism Act was filed in the United States District Court for the District of Columbia. The lawsuit was filed by the same law firm and involves substantially similar factual allegations and claims as those made in the Anti-Terrorism Act lawsuit originally filed in August 2022, and similarly names the same Ericsson corporate defendants, CEO Börje Ekholm and a former employee as defendants. The new lawsuit was brought by additional US military service members, employees of US government contractors and other civilians who were killed or injured in terrorist attacks in Iraq, Afghanistan, Syria, Turkey, Niger, and France from 2005 to 2021, as well as by their family members. The District Court for the District of Columbia has stayed the proceedings in this matter pending its decision on the motions to dismiss in the earlier-filed suit. The defendants will vigorously defend this matter.

Beginning on August 4, 2023, a number of civil lawsuits have been filed against Telefonaktiebolaget LM Ericsson in Solna District Court, Sweden. As of October 15, 2024, 93 claimants have filed suit, which are coordinated and financed by a UK-based litigation funder. The claimants consist of a group of non-Swedish funds and financial institutions that allegedly are or have been shareholders of the Company. Their damages claims are primarily based on alleged inadequate disclosure of the contents of the Company’s 2019 internal Iraq investigation report. Ericsson filed its statement of defense on March 15, 2024, and will continue to vigorously defend this matter.

On October 11, 2023, Ericsson commenced patent infringement proceedings against certain Lenovo entities (together “Lenovo”) in the Eastern District of North Carolina. In the course of the proceedings, Ericsson seeks declarations that Ericsson has complied with its FRAND commitments and with the ETSI IPR Policy and that Lenovo has infringed Ericsson patents. Ericsson has also commenced patent infringement proceedings against Lenovo at the United States International Trade Commission and in other jurisdictions (Brazil and Colombia). In return, Lenovo has filed lawsuits against Ericsson in the High Court of Justice in the UK, at

the Unified Patent Court, at the United States International Trade Commission, in the Eastern District of North Carolina, and has applied for an anti-suit injunction in the Eastern District of North Carolina. On February 14, 2024, the Eastern District of North Carolina denied the anti-suit injunction. Following Lenovo’s appeal, this decision was vacated and remanded to the Eastern District of North Carolina on October 24, 2024. This is a global dispute, and additional lawsuits and other legal actions may be initiated by the parties.

The Company actively manages its IPR portfolio and its need for third party licenses and is involved from time to time, in the ordinary course of business, in litigation related thereto, as plaintiff, defendant and other capacities.

In addition to the proceedings discussed above, the Company is, and in the future may be, involved in various other regulatory investigations, lawsuits, claims (including claims by third parties we have indemnified against infringement liability or provided guarantees to) and proceedings incidental to the ordinary course of business.

Legal proceedings involving governmental authorities

In February 2022, Ericsson publicly disclosed that an internal investigation in 2019 included a review of the conduct of Ericsson employees, vendors and suppliers in Iraq during the period between 2011 to 2019. The investigators could not determine the ultimate recipients of any payments, nor identify that any Ericsson employee was directly involved in financing terrorist organizations. The Company’s 2019 internal Iraq investigation did not conclude that Ericsson made or was responsible for any payments to any terrorist organization.

The Company continues to fully cooperate with the US Department of Justice (DOJ) in its investigation into matters discussed in the 2019 internal Iraq investigation report and related topics, including by providing additional documents and other information which continue to be requested by the DOJ. As additional information continues to be identified and evaluated in continued cooperation with the DOJ during its ongoing investigation, it is expected that there will not be any conclusive determinations on the outcome until the investigation is completed. The scope and duration of the investigation remains uncertain.

As part of its defense to a now settled patent infringement lawsuit filed by Ericsson in 2013 in the Delhi High Court against Indian handset company Micromax, Micromax filed a complaint against Ericsson with the Competition Commission of India. The Competition Commission of India decided to refer the case to the Director General’s Office for an in-depth investigation. The Competition Commission of India opened similar investigations against Ericsson in January 2014 based on claims made by Intex Technologies (India) Limited and, in 2015, based on a now settled claim from iBall. Ericsson has challenged Competition Commission of India’s jurisdiction in these cases before the Delhi High Court. On July 13, 2023, the Division Bench of the Delhi High Court found that in this instance the Competition Commission of India has no power to conduct the pending investigations against Ericsson. The Competition Commission of India has appealed this order to the Supreme Court of India.

In April 2019, Ericsson was informed by China’s State Administration for Market Regulations Anti-monopoly bureau that China’s State Administration for Market Regulations has initiated an investigation into Ericsson’s patent licensing practices in China. Ericsson is cooperating with the investigation, which is still in a fact-



14 Ericsson \| Fourth quarter and full-year report 2024. January 24, 2025.		Other information

finding phase. The next steps include continued fact-finding and meetings with China’s State Administration for Market Regulations in order to facilitate the authority’s assessment and conclusions. In case of adverse findings, China’s State Administration for Market Regulations has the power to impose behavioral and financial remedies.

PRESS RELEASES


Oct 29, 2024		Ericsson announces change to the Executive Team



15 Ericsson \| Fourth quarter and full-year report 2024. January 24, 2025.		Other information

Risk factors

Ericsson is exposed to a number of risks in its activities. To stimulate identification and support cross-functional treatment within the Ericsson Group, risks are grouped in a number of categories, including, for example, risks relating to technology, IPR, compliance, project execution, operations, products and services, treasury and accounting, the geopolitical environment, M&A, cybersecurity and occupational health and safety. Ericsson’s risk management is embedded into strategy development and operational processes and material Group risks are regularly assessed and reviewed by executives as required by Ericsson’s Material Group Risk Protocol to ensure accountability, effectiveness, efficiency, business continuity and compliance. Risks are defined in both a short-term and long-term perspective and are related to long-term objectives and strategic direction as well as to short-term objectives. Risk factors and uncertainties of relevance to Ericsson are described in the Ericsson Annual Report 2023 and in the Annual Report on Form 20-F for the year ended December 31, 2023 (in the following, the “Annual Report 2023”), as well as in Ericsson’s quarterly reports. Updates to these risk factors and uncertainties observed by Ericsson that are deemed of short-term relevance include, but are not limited to, the following risks described below. See also the risks set out in the section titled “Forward-Looking Statements.”

Ongoing geopolitical and trade uncertainty from a range of factors may have a material adverse impact on Ericsson’s business, operations and ability to meet its targets, as well as the information and telecommunications industry as a whole.

As mentioned in the Annual Report 2023, including in the risk factor 1.1, geopolitical alliances are shifting as global tensions over trade and influence drive growing economic, technological, military, and political competition across the world, particularly between the US and China. Geopolitical tensions and ongoing conflicts such as those in the broader Middle East, Russia and Ukraine, amplify the risk of government intervention, including protectionist interventions, such as tariffs, security-related requirements, such as increased regulatory barriers, restrictions on technology transfers, telecommunications and digital infrastructure to promote national security, as well as trade restrictions, export controls and enhanced sanctions measures. Additionally, geopolitical instability increasingly leads some governments to use the private sector for political objectives, including by restricting or enabling market access based on national security interests, leveraging influence over industry standards, providing financial support to domestic companies or restricting the use of foreign equipment or technology in critical infrastructure.

There are particular uncertainties for the future bilateral trading relationship between China and a number of countries, including the United States and Sweden, as a result of the restrictions imposed on Chinese vendors or components in 5G networks. These restrictions have been adopted in many countries and have resulted and may continue to result in constraints on access to hardware and software products and components. Ericsson may be affected by any further deterioration of the relationships between these countries. In addition, the Company has business operations in China, and further changes in economic and political policies in or relating to China could have a material adverse effect on the Company’s business. In addition, the incoming US administration has indicated that it intends to impose a broad range of tariffs on imports to the US, which could have significant negative impacts throughout the information and telecommunications industry, including the Company’s international product development and global value and supply chains. Restrictions on international trade, such as tariffs and other

controls on imports or exports of goods, technology or data, could have a material adverse effect on Ericsson’s business.

Due to the strategic nature of the information and telecommunications industry, Ericsson is exposed to competitive risks from state-supported enterprises, particularly from countries with significant government-backed industries. Companies in these industries may receive financial support, favorable regulatory environments and selective enforcement of rules that enable them to operate at a scale and with a cost structure that private sector companies cannot match. They may also receive market and technology access that grants them significant competitive advantages. This dynamic can create competitive pressures, particularly in international markets where these government-supported enterprises can operate with significantly lower margins compared to private sector companies. Additionally, such state-backed entities may pursue opportunities in pursuit of strategic objectives of their government owners and supporters, with less focus on financial returns, allowing for these companies to increase their market share disproportionately.

Over the last several years there have been sustained challenges to the global free trade system, including towards the World Trade Organization dispute settlement body. Certain countries have moved away from the multilateral system and instead have imposed tariffs and other trade barriers, price or exchange controls, restrictions of imports and other government policies. Any increased prospect of government restrictions on international trade could negatively impact Ericsson’s ability to benefit from open markets and free trade and could limit Ericsson’s operations and decrease Ericsson’s profitability. Furthermore, the mandated or otherwise required localization of manufacturing and R&D or use of local suppliers or production, as well as their digital counterparts (including data localization of IT-infrastructure and restrictions on data flows), has been steadily growing, motivated by protectionism, domestic industrial policies and national security concerns. Geopolitical uncertainty has led to reduced efficiency in R&D, including restrictions on use of R&D resources, and opportunities to scale or grow with increasing logistical and administrative burdens, while polarization of the industry and fragmentation of global standards continues to develop (e.g., O-RAN). There is a risk of moves away from global value and supply chains and towards more regional or national alternatives. Governments may continue to impose conditions that require the use of local suppliers and local production or partnerships with local companies for R&D and IT-infrastructure, require the license or other transfer of intellectual property, or engage in other efforts to promote local businesses and local competitors, which could have a significant adverse impact on Ericsson’s ability to operate its global business efficiently.

Many countries, including the US and China, view technology, including telecommunications infrastructure and mobile wireless technologies, as critical infrastructure and aim to lead and influence global policy and regulations around such technologies. While Ericsson is a global company with a global presence, Ericsson may face unique challenges as a Swedish company because Sweden and Europe have historically exerted limited influence in shaping global technology policies compared to more prominent technology regulators and have not committed similar levels of investment in technology infrastructure. Neither Sweden nor the European Union have developed a common and cohesive technology agenda or technology geopolitical strategy, and where regulations in the European Union have been introduced, such regulations have focused on consumer pricing rather than promoting or protecting European-based technology or telecommunications companies.



16 Ericsson \| Fourth quarter and full-year report 2024. January 24, 2025.		Risk factors

Consequently, Ericsson remains exposed to changes in global policy dynamics that it cannot directly or indirectly influence, and which may be influenced to benefit competitors. Additionally, due to the strategic nature of the industry in which Ericsson operates, foreign countries could support or develop a national champion as an alternative to the established global vendors, such as Ericsson, in order to have further control over local communication networks and infrastructure.

There are numerous ongoing local and regional conflicts, including the ongoing military conflicts between Ukraine and Russia (which market Ericsson has exited) and in the broader Middle East. While the ultimate impact of these events is unclear, the uncertainty they create is expected to continue. These geopolitical developments, including trade or security restrictions and export controls, enhanced sanctions measures and vendor consolidation, can negatively impact global market conditions, including market share, access and position. The strategic and sensitive nature of the information and telecommunications industry also heightens exposure to cyberattacks and corporate espionage, with respect to both technology and commercial matters, resulting in an increased risk of cyber threats from state-backed and criminal threat actors, including digital attacks aimed at disrupting, damaging or infiltrating another’s critical infrastructure, network and systems. Countries and their policies have been increasingly focused on mitigating the risk of cyber espionage, geolocation and data control, and the protection of critical national infrastructure and information.

Additionally, political instability, strict requirements on localization of data, manufacturing and R&D, or use of local suppliers or production in the regions in which the Company operates may further increase the risk of possible legal or regulatory violations by Ericsson or its employees. Any violation by Ericsson or its employees could cause severe reputational harm to the Company and have a material adverse effect on Ericsson’s business operations and result in government actions and the imposition of significant financial penalties and restrictions on the Company’s ability to do business, including with certain customers, such as government bodies or those in certain regulated sectors (e.g. telecommunications).

The continually evolving global geopolitical situation has had and will continue to have consequences for the entire information and telecommunications industry, with the possibility of further industry splits, separation of global value and supply chains and separation of global standards for mobile telecommunications. These developments have also led to several countries evaluating how to ensure uninterrupted access to telecommunication network infrastructure, for example through promoting disaggregation of the Radio Access Network, although the timing and extent of this remains unclear.

All of the above may have a material and potentially lasting adverse impact on Ericsson’s international product development and global value and supply chains and necessitate a flexible and adaptive organizational setup, therefore negatively impacting its profitability and business as a whole.

Ericsson is subject to certain US, UK and other anti-corruption (including anti-bribery, anti-money-laundering, sanctions, terror finance and anti-terrorism) laws, rules and regulations and other regulatory requirements or conditions in other jurisdictions or imposed as a result of foreign direct investment reviews and decisions, and may be subject to heightened scrutiny by governmental authorities.

As mentioned in the Annual Report 2023, including in the risk factor 3.3, Ericsson is, from time to time, involved in legal proceedings and regulatory investigations, and is subject to certain other regulatory requirements, conditions and agreements. If any of these lawsuits or legal proceedings are determined unfavorably

against the Company or it is determined that the Company is not in compliance with any of these regulatory requirements, conditions or agreements, the Company could be required to pay substantial damages, fines and/or penalties, be subject to public scrutiny, negative reputational consequences, or become subject to additional enforcement actions, regulatory review and/or adverse decisions. Ericsson could face potential debarment from government contracting in the United States and elsewhere, reputational risk, as well as potential counterparty reluctance to continue business relationships. In addition, these ongoing matters and investigations require significant resources and costs for investigation, compliance and remediation that could lead to adverse financial and reputational consequences.

Additionally, due to the strategic nature of the industry in which Ericsson operates and its previously disclosed regulatory investigations, Ericsson is closely monitored by government authorities and may be subject to heightened scrutiny from regulators. As previously disclosed, Ericsson has resolved matters with government agencies through settlements, which increase regulatory scrutiny of its current and future compliance practices. This heightened scrutiny exposes Ericsson to an elevated risk of compliance audits, investigations and enforcement actions and any future perceived or actual non-compliance with applicable laws and regulations could result in more significant penalties, restrictions on its operations, or reputational harm that may impact its business relationships and customer trust.

In connection with the acquisition of Vonage by Ericsson, and as a condition to Committee on Foreign Investment in the United States’ (CFIUS) approval of the acquisition, Vonage, Ericsson and the US Department of Justice and the US Department of the Treasury, in their capacity as CFIUS monitoring agencies, entered into a National Security Agreement in July 2022, which imposes restrictions on access to certain types of sensitive data, equipment and systems. Vonage and Ericsson are engaged and cooperating with the CFIUS monitoring agencies in relation to ongoing compliance with the National Security Agreement restrictions, related remediation efforts to address concerns raised by the CFIUS monitoring agencies regarding such access, and the CFIUS monitoring agencies’ requests for information. The ongoing compliance efforts and related remediation have required changes to the Vonage business, including reduction and cessation of operations in certain jurisdictions. Further changes may be required which could adversely affect the Vonage business, including changes to business structure and additional compliance measures with associated costs. The CFIUS monitoring agencies review of integrations and connections of Ericsson and Vonage technologies could also increase time to market. Vonage and Ericsson continue to cooperate with the CFIUS monitoring agencies in investigating historical and ongoing compliance with the terms of the National Security Agreement. The ultimate outcome of these investigations remains uncertain. Violations of a CFIUS mitigation agreement, such as the National Security Agreement, can result in an enforcement action imposing monetary penalties or other remedies. CFIUS has increased its resources and focus on enforcement and has recently imposed major financial penalties for violations of mitigation agreements involving unauthorized access to sensitive data and failure to report such incidents promptly to CFIUS.



17 Ericsson \| Fourth quarter and full-year report 2024. January 24, 2025.		Risk factors

The Company continues to fully cooperate with the DOJ in its investigation into matters discussed in the 2019 internal Iraq investigation report and related topics, including by providing additional documents and other information which continue to be requested by the DOJ. As additional information continues to be identified and evaluated in continued cooperation with the DOJ during its ongoing investigation, it is expected that there will not be any conclusive determinations on the outcome until the investigation is completed. The scope and duration of the investigation remains uncertain.

Ericsson is required to comply with anti-corruption and anti-bribery laws in the jurisdictions in which it operates, including the US Foreign Corrupt Practices Act, the UK Bribery Act and other similar laws in other countries in which the Company does business. As a result of doing business in foreign countries, including through channel partners and agents, Ericsson is exposed to risks of violating anti-corruption laws. As a company that operates in certain regulated sectors, Ericsson deals with both governments and state-owned business enterprises, the employees of which are often considered foreign officials for purposes of the US Foreign Corrupt Practices Act and other applicable anti-bribery legislation. Some of the international locations in which Ericsson operates have developing legal systems and may have higher levels of corruption than more developed jurisdictions. Actual or alleged non-compliance with anti-corruption laws and other laws governing the conduct of business with government entities and/or officials (including local laws) could subject Ericsson to criminal and civil penalties and other remedial measures, which could have a material adverse effect on Ericsson, including its reputation, business, financial condition, operating results, cash flows or prospects.

For additional information regarding certain of the legal proceedings and inquiries in which Ericsson is involved, see “Legal proceedings” in the Board of Directors’ Report in the Ericsson Annual Report 2023.

Stockholm, January 24, 2025

Telefonaktiebolaget LM Ericsson

Börje Ekholm, President and CEO

Org. No. 556016-0680

Date for next report: April 15, 2025.



18 Ericsson \| Fourth quarter and full-year report 2024. January 24, 2025.		Risk factors

Editor’s note

Media and analyst briefing

Ericsson invites media, investors and analysts to a conference call and live video webcast at 09:00 AM CEST on January 24, 2025.

Link to the webcast, dial-in to audio conference, supporting material and replay will be available at:

www.ericsson.com/investors and

www.ericsson.com/newsroom

For further information, please contact:

Lars Sandström, Senior Vice President, Chief Financial Officer

Phone: +46 72 161 20 04

E-mail: investor.relations@ericsson.com

Stella Medlicott, Senior Vice President, Chief Marketing and

Communications Officer

Phone: +46 73 095 65 39

E-mail: media.relations@ericsson.com

Telefonaktiebolaget LM Ericsson

Org. number: 556016-0680

Torshamnsgatan 21

SE-164 83 Stockholm

Phone: +46 10 719 00 00

www.ericsson.com

Investors

Daniel Morris, Vice President,

Head of Investor Relations

Phone: +44 7386 657217

E-mail: investor.relations@ericsson.com

Lena Häggblom, Director,

Investor Relations

Phone: +46 72 593 27 78

E-mail: lena.haggblom@ericsson.com

Alan Ganson, Director,

Investor Relations

Phone: +46 70 267 27 30

E-mail: alan.ganson@ericsson.com

Media

Ralf Bagner, Head of Media Relations

Phone: + 46 76 128 47 89

E-mail: media.relations@ericsson.com

Corporate Communications

Phone: +46 10 719 69 92

E-mail: media.relations@ericsson.com



19 Ericsson \| Fourth quarter and full-year report 2024. January 24, 2025.		Editor’s note

Forward-looking statements

This report includes forward-looking statements. All statements other than statements of historical fact are forward-looking statements. The words “believe,” “expect,” “foresee,” “anticipate,” “assume,” “intend,” “likely,” “projects,” “may,” “could,” “plan,” “estimate,” “forecast,” “will,” “should,” “would,” “predict,” “aim,” “ambition,” “seek,” “potential,” “target,” “might,” “continue,” or, in each case, their negative or variations, and similar words or expressions are used to identify forward-looking statements. These statements are subject to risks and uncertainties that could cause actual results to differ materially and adversely from those expressed in, or implied or projected by, the forward-looking statements, including, in particular the following:

•

Potential material additional liability resulting from past conduct, including allegations of past conduct that remains unresolved or unknown in multiple jurisdictions including Iraq, which remains the subject of ongoing investigations by Ericsson and US governmental authorities

•

Risks related to internal controls and governance, including the potential to incur material liability in connection with internal controls surrounding payments made to third parties in connection with past conduct in multiple jurisdictions including Iraq which remains the subject of ongoing investigations by Ericsson and US governmental authorities

•

The risk that the ongoing investigations by Ericsson and US governmental authorities result in a conclusion by Ericsson or US governmental authorities that the Company’s past conduct included making or having responsibility for making payments to a terrorist organization or other improper payments, which could lead to material additional liability

•

Risks related to ongoing compliance with obligations under the NSA entered into in connection with Ericsson’s acquisition of Vonage, which may adversely affect the Vonage business and subject the Company to additional liabilities

•

Our goals, strategies, planning assumptions and operational or financial performance expectations

•

Macroeconomic conditions, including inflationary pressures and effects on customer investments, market recovery and growth

•

Ongoing geopolitical and trade uncertainty, including challenging global economic conditions, market trends and the imposition of tariffs and sanctions

•

Risks related to cybersecurity and privacy

•

Industry trends, future characteristics and development of the markets in which we operate

•

Our ability to comply with legal and regulatory requirements internationally

•

Our future liquidity, capital resources, capital expenditures, cost savings and profitability

•

The expected demand for our existing and new products and services as well as plans to launch new products and services including research and development expenditures

•

Our ability to deliver on future plans and achieve future growth

•

The expected operational or financial performance of strategic cooperation activities and joint ventures

•

Risks related to acquisitions and divestments, including our ability to successfully consummate such transactions, protect the value of acquisitions during integration, or achieve the value anticipated with an acquisition

•

Extent of impairment impacts on cash flow and dividend capacity in future periods, which is assessed based on full- year performance and is impacted by a variety of factors, including earnings, business outlook and financial position

•

Trends related to our industry, including our regulatory environment, competition and customer structure

•

Other factors included in our filings with the SEC, including the factors described throughout this report, included in the section Risk Factors, and in “Risk Factors” in the Annual Report 2023, as updated by subsequent reports filed with the SEC.

These forward-looking statements also represent our estimates, assumptions and expectations only as of the date that they were made, and to the extent they represent third-party data, we have not undertaken to independently verify such third-party data and do not intend to do so. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements and are urged to carefully review and consider the various disclosures made in this report and in other documents we file from time to time with our regulators that disclose risks and uncertainties that may affect our business. We expressly disclaim a duty to provide updates to these forward-looking statements, and the estimates and assumptions associated with them, after the date of this report, except as required by applicable law or stock exchange regulations.



20 Ericsson \| Fourth quarter and full-year report 2024. January 24, 2025.		Forward-looking statements

Auditors’ Review Report

Introduction

We have reviewed the condensed interim financial information (year-end report) of Telefonaktiebolaget LM Ericsson (publ.) as of December 31, 2024, and the twelve months period then ended. The board of directors and the CEO are responsible for the preparation and presentation of the year-end report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this year-end report based on our review.

Scope of review

We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, Review of Interim Report Performed by the Independent Auditor of the Entity.

A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing, ISA, and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that would make us aware of all significant matters that might be identified in an

audit. Therefore, the conclusion expressed based on a review does not give the same level of assurance as a conclusion expressed based on an audit.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the year-end report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act, regarding the Group, and with the Swedish Annual Accounts Act, regarding the Parent Company.

Stockholm, January 24, 2025

Deloitte AB

Thomas Strömberg

Authorized Public Accountant



21 Ericsson \| Fourth quarter and full-year report 2024. January 24, 2025.		Auditors’ Review Report

Financial statements and other information

Contents



Financial statements (unaudited)			23
Condensed consolidated income statement			23
Condensed statement of comprehensive income (loss)			23
Condensed consolidated balance sheet			24
Condensed consolidated statement of cash flows			25
Condensed consolidated statement of changes in equity			26
Condensed consolidated income statement – isolated quarters			26
Condensed consolidated statement of cash flows – isolated quarters			27
Condensed Parent Company income statement			28
Condensed Parent Company statement of comprehensive income (loss)			28
Condensed Parent Company balance sheet			29

Accounting policies and Explanatory notes (unaudited)			30
Note 1 – Accounting policies			30
Note 2 – Segment information			31
Note 3 – Financial income and expenses, net			35
Note 4 – Provisions			36
Note 5 – Financial risk management			37
Note 6 – Cash flow			38
Note 7 – Contingent liabilities and Assets pledged as collateral			38
Note 8 – Share information			39
Note 9 – Employee information			39
Note 10 – Goodwill and Customer relationships, IPR and other intangible assets			39
Note 11 – Information on future divestment			40

Alternative performance measures (unaudited)			41
Sales growth adjusted for comparable units and currency			42
Items excluding restructuring charges and impairments of goodwill and intangible assets			43
EBITA and EBITA margin / Adjusted EBITA and EBITA margin			44
Rolling four quarters of net sales and adjusted EBITA margin (%)			44
Gross cash and net cash, end of period			45
Capital employed			45
Capital turnover			45
Return on capital employed			46
Equity ratio			46
Return on equity			46
Free cash flow before M&A / Free cash flow after M&A / Free cash flow before M&A (% of net sales)			47
Sales growth by segment adjusted for comparable units and currency			48
Sales growth by market area adjusted for comparable units and currency			48
Rolling four quarters of net sales by segment			48
Gross margin by segment by quarter			49
EBIT margin by segment by quarter			49
EBITA and EBITA margin by segment by quarter			50
Restructuring charges by function			51
Restructuring charges by segment			51
Adjusted gross income and gross margin by segment			52
Adjusted EBIT (loss) and EBIT margin by segment			53
Rolling four quarters of adjusted EBITA margin by segment (%)			53
Adjusted EBITA and EBITA margin by segment			54
Other ratios			54



22 Ericsson \| Fourth quarter and full-year report 2024. January 24, 2025.		Financial statements and other information

Financial statements (unaudited)

Condensed consolidated income statement


			Q4							Jan-Dec
SEK million	Note		2024		2023		Change			2024		2023
Net sales		2		72,913		71,881		1	%		247,880		263,351
Cost of sales				-40,206		-43,276		-7	%		-138,515		-161,749

Gross income		2		32,707		28,605		14	%		109,365		101,602

Research and development expenses ¹⁾		10		-13,877		-13,018		7	%		-53,514		-50,664
Selling and administrative expenses ¹⁾		10		-10,512		-9,877		6	%		-51,657		-39,255
Impairment losses on trade receivables				-2		209		-101	%		-265		-268

Operating expenses				-24,391		-22,686		8	%		-105,436		-90,187

Other operating income and expenses²⁾		10		-50		-125		-60	%		630		-31,865
Share of earnings of associated companies				-308		54		—			-246		124
Earnings (loss) before financial items and income tax (EBIT)		2		7,958		5,848		36	%		4,313		-20,326
Financial income and expenses, net		3		-391		-938		-58	%		-1,724		-2,993

Income (loss) after financial items				7,567		4,910		54	%		2,589		-23,319

Income tax ¹⁾				-2,688		-1,501		79	%		-2,215		-2,785

Net income (loss)				4,879		3,409		43	%		374		-26,104

Net income (loss) attributable to:
Owners of the Parent Company				4,779		3,394					20		-26,446
Non-controlling interests				100		15					354		342
Other information
Average number of shares, basic (million)		8		3,333		3,330					3,332		3,330
Earnings (loss) per share, basic (SEK) ³⁾		8		1.44		1.02					0.01		-7.94
Earnings (loss) per share, diluted (SEK) ^3) 4)		8		1.44		1.02					0.01		-7.94

¹⁾	Jan-Dec 2024 includes an impairment of intangible assets reported in the second quarter, of which R&D expenses SEK -1.2 billion, SG&A expenses SEK -12.6 billion and Income tax SEK 3.7 billion.

²⁾

Jan-Dec 2024 includes a goodwill impairment of SEK -1.3 billion reported in the second quarter, and a one-time gain of SEK 1.9 billion reported in the first quarter from the resolution of a commercial dispute. Jan-Dec 2023 includes write-down of goodwill of SEK -31.9 billion reported in the third quarter.

³⁾	Based on net income attributable to owners of the Parent Company.

⁴⁾	Potential ordinary shares are not considered when their conversion to ordinary shares would improve earnings per share.

Condensed statement of comprehensive income (loss)


	Q4				Jan-Dec
SEK million	2024		2023		2024		2023
Net income (loss)		4,879		3,409		374		-26,104
Other comprehensive income
*Items that will not be reclassified to profit or loss*
Remeasurements of defined benefit pension plans		-371		-8,460		877		905
Revaluation of credit risk on borrowings		-128		-225		-567		-667
Tax on items that will not be reclassified to profit or loss		141		1,505		-28		-114
*Items that have been or may be reclassified to profit or loss*
Cash flow hedge reserve
Gains/losses arising during the period		-3,128		3,258		-3,892		754
Reclassification adjustments on gains/losses included in profit or loss		249		400		725		1,090
Translation reserves
Changes in translation reserves		5,188		-7,126		6,461		-2,375
Reclassification to profit or loss		155		-2		73		59
Share of other comprehensive income of associates		29		-39		40		-10
Tax on items that have been or may be reclassified to profit or loss		593		-754		652		-380

Total other comprehensive income (loss), net of tax		2,728		-11,443		4,341		-738

Total comprehensive income (loss)		7,607		-8,034		4,715		-26,842
Total comprehensive income (loss) attributable to:
Owners of the Parent Company		7,619		-8,134		4,515		-27,233
Non-controlling interests		-12		100		200		391



23 Ericsson \| Fourth quarter and full-year report 2024. January 24, 2025.		Financial statements

Condensed consolidated balance sheet


			Dec 31		Dec 31
SEK million	Note		2024		2023
Assets
Non-current assets
Intangible assets
Capitalized development expenses				4,593		4,678
Goodwill		10		56,077		52,944
Customer relationships, IPR and other intangible assets		10		7,954		22,667
Property, plant and equipment				10,545		12,195
Right-of-use assets				6,487		6,320
Financial assets
Equity in JV and associated companies				1,179		1,150
Other investments in shares and participations		5		2,029		2,091
Customer finance, non-current		5		190		1,347
Interest-bearing securities, non-current		5		19,440		9,931
Other financial assets, non-current		5		5,161		6,350
Deferred tax assets				24,412		22,375

				138,067		142,048

Current assets
Inventories				27,125		36,073
Contract assets				6,924		7,999
Trade receivables		5		44,151		42,215
Customer finance, current		5		4,332		5,570
Current tax assets				6,083		6,395
Other current receivables				9,261		11,962
Interest-bearing securities, current		5		12,546		9,584
Cash and cash equivalents		5		43,885		35,190

				154,307		154,988

Total assets				292,374		297,036

Equity and liabilities
Equity
Stockholders’ equity				94,284		98,673
Non-controlling interest in equity of subsidiaries				-1,301		-1,265

				92,983		97,408

Non-current liabilities
Post-employment benefits				24,448		26,229
Provisions, non-current		4		3,511		4,927
Deferred tax liabilities				1,295		3,880
Borrowings, non-current		5		31,904		29,218
Lease liabilities, non-current				5,363		5,220
Other non-current liabilities				996		755

				67,517		70,229

Current liabilities
Provisions, current		4		8,204		6,779
Borrowings, current		5		6,137		17,655
Lease liabilities, current				2,132		2,235
Contract liabilities				41,229		34,416
Trade payables		5		30,173		27,768
Current tax liabilities				3,322		3,561
Other current liabilities				40,677		36,985

				131,874		129,399

Total equity and liabilities				292,374		297,036



24 Ericsson \| Fourth quarter and full-year report 2024. January 24, 2025.		Financial statements

Condensed consolidated statement of cash flows


			Q4				Jan-Dec
SEK million	Note		2024		2023		2024		2023
Operating activities
Net income (loss)				4,879		3,409		374		-26,104
Adjustments for
Taxes				2,563		1,302		2,540		3,189
Earnings/dividends in JV and associated companies				387		-46		459		-58
Depreciation, amortization and impairment losses		6		2,815		3,083		25,734		43,889
Other				528		1,417		1,884		4,690

				11,172		9,165		30,991		25,606

Changes in operating net assets
Inventories				2,876		6,884		10,208		9,304
Customer finance, current and non-current				-225		5,720		2,755		-1,708
Trade receivables and contract assets				-3,041		-2,089		2,576		6,333
Trade payables				2,580		-966		496		-10,037
Provisions and post-employment benefits				958		1,051		-53		1,308
Contract liabilities				-407		-4,821		4,598		-7,088
Other operating assets and liabilities, net				5,088		801		2,237		-10,111

				7,829		6,580		22,817		-11,999

Interest received				518		256		1,800		1,218
Interest paid				-543		-543		-3,043		-2,280
Taxes paid				-1,463		-976		-6,304		-5,368

Cash flow from operating activities				17,513		14,482		46,261		7,177

Investing activities
Investments in property, plant and equipment		6		-667		-720		-2,340		-3,297
Sales of property, plant and equipment				14		37		116		163
Acquisitions/divestments of subsidiaries and other operations, net				-95		-225		-311		-2,140
Product development		6		-323		-551		-1,300		-2,173
Purchase of interest-bearing securities				-6,642		-11,318		-19,622		-15,304
Sales of interest-bearing securities				2,605		1,116		11,247		11,739
Other investing activities		6		-3,219		4,854		-3,742		2,299

Cash flow from investing activities				-8,327		-6,807		-15,952		-8,713

Financing activities
Proceeds from issuance of borrowings				485		11,578		3,615		19,728
Repayment of borrowings				-373		-1,666		-15,917		-7,884
Dividends paid				-4,514		-4,504		-9,233		-9,104
Repayment of lease liabilities				-626		-783		-2,492		-2,857
Other financing activities				-419		-899		162		1,124

Cash flow from financing activities				-5,447		3,726		-23,865		1,007

Effect of exchange rate changes on cash				2,823		-3,111		2,251		-2,630

Net change in cash and cash equivalents				6,562		8,290		8,695		-3,159

Cash and cash equivalents, beginning of period				37,323		26,900		35,190		38,349

Cash and cash equivalents, end of period				43,885		35,190		43,885		35,190



25 Ericsson \| Fourth quarter and full-year report 2024. January 24, 2025.		Financial statements

Condensed consolidated statement of changes in equity


	Jan-Dec
SEK million	2024		2023
Opening balance		97,408		133,304
Total comprehensive income (loss)		4,715		-26,842
Sale/repurchase of own shares		-21		-50
Share issue, net		21		50
Long-term variable compensation plans		93		82
Dividends to shareholders		-9,233		-9,104
Transactions with non-controlling interests		—		-32

Closing balance		92,983		97,408

Condensed consolidated income statement – isolated quarters


	2024								2023
Isolated quarters, SEK million	Q4		Q3		Q2		Q1		Q4		Q3		Q2		Q1
Net sales		72,913		61,794		59,848		53,325		71,881		64,473		64,444		62,553
Cost of sales		-40,206		-33,609		-34,033		-30,667		-43,276		-39,745		-40,343		-38,385

Gross income		32,707		28,185		25,815		22,658		28,605		24,728		24,101		24,168

Research and development expenses ¹⁾		-13,877		-13,140		-14,926		-11,571		-13,018		-11,897		-13,777		-11,972
Selling and administrative expenses ¹⁾		-10,512		-9,380		-23,074		-8,691		-9,877		-9,617		-10,643		-9,118
Impairment losses on trade receivables		-2		78		-84		-257		209		-115		-313		-49

Operating expenses		-24,391		-22,442		-38,084		-20,519		-22,686		-21,629		-24,733		-21,139

Other operating income and expenses ²⁾		-50		4		-1,299		1,975		-125		-32,031		264		27
Share of earnings of JV and associated companies		-308		27		49		-14		54		24		56		-10

Earnings before financial items and income tax (EBIT)		7,958		5,774		-13,519		4,100		5,848		-28,908		-312		3,046

Financial income and expenses, net		-391		-501		-361		-471		-938		-719		-419		-917

Income after financial items		7,567		5,273		-13,880		3,629		4,910		-29,627		-731		2,129

Income tax ¹⁾		-2,688		-1,392		2,881		-1,016		-1,501		-864		134		-554

Net income (loss)		4,879		3,881		-10,999		2,613		3,409		-30,491		-597		1,575

Net income (loss) attributable to:
Owners of the Parent Company		4,779		3,814		-11,132		2,559		3,394		-30,670		-686		1,516
Non-controlling interests		100		67		133		54		15		179		89		59
Other information
Average number of shares, basic (million)		3,333		3,333		3,332		3,331		3,330		3,330		3,330		3,330
Earnings (loss) per share, basic (SEK) ³⁾		1.44		1.14		-3.34		0.77		1.02		-9.21		-0.21		0.46
Earnings (loss) per share, diluted (SEK) ³⁾ ⁴⁾		1.44		1.14		-3.34		0.77		1.02		-9.21		-0.21		0.45

¹⁾	Q2 2024 includes an impairment of intangible assets, of which R&D expenses SEK -1.2 billion, SG&A expenses SEK -12.6 billion and Income tax SEK 3.7 billion.

²⁾	Q2 2024 includes a goodwill impairment of SEK -1.3 billion. Q1 2024 includes a one-time gain of SEK 1.9 billion from the resolution of a commercial dispute. Q3 2023 includes a goodwill impairment of SEK -31.9 billion.

³⁾	Based on net income attributable to owners of the Parent Company.

⁴⁾	Potential ordinary shares are not considered when their conversion to ordinary shares would increase earnings per share.



26 Ericsson \| Fourth quarter and full-year report 2024. January 24, 2025.		Financial statements

Condensed consolidated statement of cash flows – isolated quarters


			2024								2023
Isolated quarters, SEK million	Q4		Q3		Q2		Q1		Q4		Q3		Q2		Q1
Operating activities
Net income (loss)		4,879		3,881		-10,999		2,613		3,409		-30,491		-597		1,575
Adjustments for
Taxes		2,563		1,397		-2,693		1,273		1,302		1,033		-215		1,069
Earnings/dividends in JV and associated companies		387		110		-41		3		-46		27		-48		9
Depreciation, amortization and impairment losses		2,815		2,292		18,015		2,612		3,083		34,901		2,813		3,092
Other		528		592		424		340		1,417		1,021		606		1,646

		11,172		8,272		4,706		6,841		9,165		6,491		2,559		7,391

Changes in operating net assets
Inventories		2,876		1,358		3,239		2,735		6,884		2,098		382		-60
Customer finance, current and non-current		-225		1,211		-365		2,134		5,720		-4,702		558		-3,284
Trade receivables and contract assets		-3,041		3,524		1,857		236		-2,089		6,469		1,753		200
Trade payables		2,580		-3		1,941		-4,022		-966		-4,367		-597		-4,107
Provisions and post-employment benefits		958		955		304		-2,270		1,051		379		841		-963
Contract liabilities		-407		-117		-1,398		6,520		-4,821		-2,616		-5,204		5,553
Other operating assets and liabilities, net		5,088		859		890		-4,600		801		-350		-1,457		-9,105

		7,829		7,787		6,468		733		6,580		-3,089		-3,724		-11,766
Interest received		518		506		385		391		256		284		283		395
Interest paid		-543		-526		-677		-1,297		-543		-599		-549		-589
Taxes paid		-1,463		-1,642		-1,606		-1,593		-976		-1,685		-1,451		-1,256

Cash flow from operating activities		17,513		14,397		9,276		5,075		14,482		1,402		-2,882		-5,825

Investing activities
Investments in property,plant and equipment		-667		-540		-699		-434		-720		-817		-806		-954
Sales of property, plant and equipment		14		36		42		24		37		51		42		33
Acquisitions/divestments of subs. and other operations, net		-95		-62		-48		-106		-225		-160		-911		-844
Product development		-323		-264		-327		-386		-551		-485		-562		-575
Purchase of interest-bearing securities		-6,642		-5,517		-5,845		-1,618		-11,318		-1,854		-2,132		—
Sales of interest-bearing securities		2,605		4,937		1,501		2,204		1,116		2,847		4,072		3,704
Other investing activities		-3,219		1,113		-611		-1,025		4,854		-1,445		-2,116		1,006

Cash flow from investing activities		-8,327		-297		-5,987		-1,341		-6,807		-1,863		-2,413		2,370

Financing activities
Proceeds from issuance of borrowings		485		1,161		2		1,967		11,578		6,097		1,026		1,027
Repayment of borrowings		-373		-5,127		-16		-10,401		-1,666		-2,306		-2,832		-1,080
Dividends paid		-4,514		-8		-4,711		—		-4,504		-9		-4,591		—
Repayment of lease liabilities		-626		-607		-658		-601		-783		-691		-690		-693
Other financing activities		-419		356		-313		538		-899		2,029		18		-24

Cash flow from financing activities		-5,447		-4,225		-5,696		-8,497		3,726		5,120		-7,069		-770

Effect of exchange rate changes on cash		2,823		-1,288		-705		1,421		-3,111		-90		562		9

Net change in cash and cash equivalents		6,562		8,587		-3,112		-3,342		8,290		4,569		-11,802		-4,216

Cash and cash equivalents, beginning of period		37,323		28,736		31,848		35,190		26,900		22,331		34,133		38,349

Cash and cash equivalents,end of period		43,885		37,323		28,736		31,848		35,190		26,900		22,331		34,133



27 Ericsson \| Fourth quarter and full-year report 2024. January 24, 2025.		Financial statements

Condensed Parent Company income statement


	Q4				Jan-Dec
SEK million	2024		2023		2024		2023
Net sales		—		—		—		—
Cost of sales		—		—		—		—
Gross income		—		—		—		—
Operating expenses		-337		-442		-1,320		-1,818
Other operating income and expenses		582		703		4,827		3,606

EBIT		245		261		3,507		1,788

Financial net		10,411		13,683		3,138		-2,496

Income (loss) after financial items		10,656		13,944		6,645		-708

Transfers to (-) / from untaxed reserves		-2,415		-81		-2,415		-81
Income tax		180		-269		-488		-382

Net income (loss)		8,421		13,594		3,742		-1,171

Condensed Parent Company statement of comprehensive income (loss)

Jan-Dec

SEK million

2024

2023

2024

2023

Net income (loss)

8,421

13,594

3,742

-1,171

Other comprehensive income (loss), net of tax

—

Total comprehensive income (loss)

8,421

13,594

3,742

-1,171



28 Ericsson \| Fourth quarter and full-year report 2024. January 24, 2025.		Financial statements

Condensed Parent Company balance sheet


SEK million	Dec 31 2024		Dec 31 2023
Assets
Fixed assets
Intangible assets		160		—
Tangible assets		295		344
Financial assets ¹⁾		121,721		126,523

		122,176		126,867

Current assets
Receivables		19,876		22,433
Short-term investments		12,222		9,355
Cash and cash equivalents		27,073		15,640

		59,171		47,428

Total assets		181,347		174,295

Stockholders’ equity, provisions and liabilities
Equity
Restricted equity		48,235		48,214
Non-restricted equity		22,335		27,584

		70,570		75,798

Provisions		144		275
Non-current liabilities		31,884		29,150
Current liabilities		78,749		69,072

Total stockholders’ equity, provisions and liabilities		181,347		174,295

¹⁾ Of which interest-bearing securities, non-current		19,439		9,930



29 Ericsson \| Fourth quarter and full-year report 2024. January 24, 2025.		Financial statements

Accounting policies and Explanatory notes (unaudited)

Note 1 – Accounting policies

The Group

This condensed consolidated interim financial report for the reporting period ended December 31, 2024, has been prepared in accordance with International Accounting Standard IAS 34 “Interim Financial Reporting”. 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, 2023, and should be read in conjunction with that annual report. Amendments to IFRS standards that became effective during 2024 do not have a material impact on the result and financial position of the Company.



30 Ericsson \| Fourth quarter and full-year report 2024. January 24, 2025.		Accounting policies and Explanatory notes

Note 2 – Segment information

Net sales by segment by quarter


	2024												2023
Isolated quarters, SEK million	Q4			Q3			Q2			Q1			Q4			Q3			Q2			Q1
Networks		46,797			40,016			37,679			33,715			44,998			41,537			42,440			42,467
Of which Products		36,592			31,242			28,583			25,397			34,704			31,740			32,774			32,175
Of which Services		10,205			8,774			9,096			8,318			10,294			9,797			9,666			10,292
Cloud Software and Services		19,457			14,953			15,180			13,045			19,558			15,564			15,108			13,400
Of which Products		7,826			5,240			4,814			4,529			7,046			5,010			5,161			4,455
Of which Services		11,631			9,713			10,366			8,516			12,512			10,554			9,947			8,945
Enterprise		6,090			6,319			6,484			5,970			6,698			6,673			6,379			5,995
Other		569			506			505			595			627			699			517			691

Total		72,913			61,794			59,848			53,325			71,881			64,473			64,444			62,553


	2024												2023
Sequential change, percent	Q4			Q3			Q2			Q1			Q4			Q3			Q2			Q1
Networks		17	%		6	%		12	%		-25	%		8	%		-2	%		0	%		-28	%
Of which Products		17	%		9	%		13	%		-27	%		9	%		-3	%		2	%		-30	%
Of which Services		16	%		-4	%		9	%		-19	%		5	%		1	%		-6	%		-20	%
Cloud Software and Services		30	%		-1	%		16	%		-33	%		26	%		3	%		13	%		-34	%
Of which Products		49	%		9	%		6	%		-36	%		41	%		-3	%		16	%		-45	%
Of which Services		20	%		-6	%		22	%		-32	%		19	%		6	%		11	%		-26	%
Enterprise		-4	%		-3	%		9	%		-11	%		0	%		5	%		6	%		-5	%
Other		12	%		0	%		-15	%		-5	%		-10	%		35	%		-25	%		-17	%

Total		18	%		3	%		12	%		-26	%		11	%		0	%		3	%		-27	%


	2024												2023
Year over year change, percent	Q4			Q3			Q2			Q1			Q4			Q3			Q2			Q1
Networks		4	%		-4	%		-11	%		-21	%		-23	%		-14	%		-8	%		4	%
Of which Products		5	%		-2	%		-13	%		-21	%		-24	%		-11	%		-7	%		3	%
Of which Services		-1	%		-10	%		-6	%		-19	%		-20	%		-21	%		-10	%		7	%
Cloud Software and Services		-1	%		-4	%		0	%		-3	%		-3	%		10	%		8	%		11	%
Of which Products		11	%		5	%		-7	%		2	%		-12	%		5	%		10	%		23	%
Of which Services		-7	%		-8	%		4	%		-5	%		3	%		12	%		7	%		6	%
Enterprise		-9	%		-5	%		2	%		0	%		6	%		34	%		275	%		275	%
Other		-9	%		-28	%		-2	%		-14	%		-24	%		0	%		-32	%		4	%

Total		1	%		-4	%		-7	%		-15	%		-16	%		-5	%		3	%		14	%


	2024												2023
Year to date, SEK million	Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar			Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar
Networks		158,207			111,410			71,394			33,715			171,442			126,444			84,907			42,467
Of which Products		121,814			85,222			53,980			25,397			131,393			96,689			64,949			32,175
Of which Services		36,393			26,188			17,414			8,318			40,049			29,755			19,958			10,292
Cloud Software and Services		62,635			43,178			28,225			13,045			63,630			44,072			28,508			13,400
Of which Products		22,409			14,583			9,343			4,529			21,672			14,626			9,616			4,455
Of which Services		40,226			28,595			18,882			8,516			41,958			29,446			18,892			8,945
Enterprise		24,863			18,773			12,454			5,970			25,745			19,047			12,374			5,995
Other		2,175			1,606			1,100			595			2,534			1,907			1,208			691

Total		247,880			174,967			113,173			53,325			263,351			191,470			126,997			62,553


	2024												2023
Year over year change, percent	Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar			Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar
Networks		-8	%		-12	%		-16	%		-21	%		-11	%		-6	%		-2	%		4	%
Of which Products		-7	%		-12	%		-17	%		-21	%		-11	%		-5	%		-2	%		3	%
Of which Services		-9	%		-12	%		-13	%		-19	%		-12	%		-9	%		-2	%		7	%
Cloud Software and Services		-2	%		-2	%		-1	%		-3	%		5	%		9	%		9	%		11	%
Of which Products		3	%		0	%		-3	%		2	%		3	%		12	%		16	%		23	%
Of which Services		-4	%		-3	%		0	%		-5	%		6	%		8	%		6	%		6	%
Enterprise		-3	%		-1	%		1	%		0	%		76	%		130	%		275	%		275	%
Other		-14	%		-16	%		-9	%		-14	%		-14	%		-10	%		-15	%		4	%

Total		-6	%		-9	%		-11	%		-15	%		-3	%		3	%		8	%		14	%



31 Ericsson \| Fourth quarter and full-year report 2024. January 24, 2025.		Accounting policies and Explanatory notes

Gross income by segment by quarter


	2024								2023
Isolated quarters, SEK million	Q4		Q3		Q2		Q1		Q4		Q3		Q2		Q1
Networks		22,326		19,332		17,139		14,851		18,626		16,146		16,318		16,869
Cloud Software and Services		7,243		5,537		5,407		4,834		7,174		5,494		4,944		4,476
Enterprise		3,306		3,307		3,310		2,865		2,968		3,253		2,954		2,841
Other		-168		9		-41		108		-163		-165		-115		-18

Total		32,707		28,185		25,815		22,658		28,605		24,728		24,101		24,168


	2024								2023
Year to date, SEK million	Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar		Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar
Networks		73,648		51,322		31,990		14,851		67,959		49,333		33,187		16,869
Cloud Software and Services		23,021		15,778		10,241		4,834		22,088		14,914		9,420		4,476
Enterprise		12,788		9,482		6,175		2,865		12,016		9,048		5,795		2,841
Other		-92		76		67		108		-461		-298		-133		-18

Total		109,365		76,658		48,473		22,658		101,602		72,997		48,269		24,168

EBIT (loss) by segment by quarter


			2024								2023
Isolated quarters, SEK million	Q4		Q3		Q2		Q1		Q4		Q3		Q2		Q1
Networks		9,267		7,492		4,750		4,156		6,112		4,627		2,623		6,020
Cloud Software and Services		1,099		-443		-728		-363		1,836		86		-1,200		-942
Enterprise		-1,876		-1,201		-17,424		-1,582		-1,643		-33,302		-1,679		-1,712
Other		-532		-74		-117		1,889		-457		-319		-56		-320

Total		7,958		5,774		-13,519		4,100		5,848		-28,908		-312		3,046


	2024								2023
Year to date, SEK million	Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar		Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar
Networks		25,665		16,398		8,906		4,156		19,382		13,270		8,643		6,020
Cloud Software and Services		-435		-1,534		-1,091		-363		-220		-2,056		-2,142		-942
Enterprise		-22,083		-20,207		-19,006		-1,582		-38,336		-36,693		-3,391		-1,712
Other		1,166		1,698		1,772		1,889		-1,152		-695		-376		-320

Total		4,313		-3,645		-9,419		4,100		-20,326		-26,174		2,734		3,046



32 Ericsson \| Fourth quarter and full-year report 2024. January 24, 2025.		Accounting policies and Explanatory notes

Net sales by market area by quarter


	2024												2023
Isolated quarters, SEK million	Q4			Q3			Q2			Q1			Q4			Q3			Q2			Q1
North America		21,994			20,360			16,588			13,944			14,404			13,456			14,443			16,927
Europe and Latin America ¹⁾ ²⁾		19,392			15,150			15,639			13,229			19,218			15,475			15,972			14,219
South East Asia, Oceania and India		8,449			7,702			7,694			8,565			11,804			13,764			13,839			13,911
North East Asia		7,090			3,686			4,561			3,424			9,129			5,378			5,062			4,363
Middle East and Africa		6,314			4,883			4,941			4,633			7,750			6,455			5,348			4,186
Other ¹⁾ ²⁾		9,674			10,013			10,425			9,530			9,576			9,945			9,780			8,947

Total		72,913			61,794			59,848			53,325			71,881			64,473			64,444			62,553

¹⁾ Of which in Sweden		597			432			583			729			339			454			370			611
²⁾ Of which in EU		10,935			8,157			8,606			7,566			10,148			7,850			8,054			8,205

	2024												2023
Sequential change, percent	Q4			Q3			Q2			Q1			Q4			Q3			Q2			Q1
North America		8	%		23	%		19	%		-3	%		7	%		-7	%		-15	%		-33	%
Europe and Latin America ¹⁾ ²⁾		28	%		-3	%		18	%		-31	%		24	%		-3	%		12	%		-32	%
South East Asia, Oceania and India		10	%		0	%		-10	%		-27	%		-14	%		-1	%		-1	%		24	%
North East Asia		92	%		-19	%		33	%		-62	%		70	%		6	%		16	%		-48	%
Middle East and Africa		29	%		-1	%		7	%		-40	%		20	%		21	%		28	%		-43	%
Other ¹⁾ ²⁾		-3	%		-4	%		9	%		0	%		-4	%		2	%		9	%		-30	%

Total		18	%		3	%		12	%		-26	%		11	%		0	%		3	%		-27	%

¹⁾ Of which in Sweden		38	%		-26	%		-20	%		115	%		-25	%		23	%		-39	%		-21	%
²⁾ Of which in EU		34	%		-5	%		14	%		-25	%		29	%		-3	%		-2	%		-22	%

	2024												2023
Year over year change, percent	Q4			Q3			Q2			Q1			Q4			Q3			Q2			Q1
North America		53	%		51	%		15	%		-18	%		-43	%		-49	%		-37	%		-18	%
Europe and Latin America ¹⁾ ²⁾		1	%		-2	%		-2	%		-7	%		-8	%		1	%		4	%		-7	%
South East Asia, Oceania and India		-28	%		-44	%		-44	%		-38	%		5	%		74	%		74	%		138	%
North East Asia		-22	%		-31	%		-10	%		-22	%		9	%		-4	%		-31	%		-20	%
Middle East and Africa		-19	%		-24	%		-8	%		11	%		5	%		14	%		2	%		-3	%
Other ¹⁾ ²⁾		1	%		1	%		7	%		7	%		-25	%		41	%		158	%		157	%

Total		1	%		-4	%		-7	%		-15	%		-16	%		-5	%		3	%		14	%

¹⁾ Of which in Sweden		76	%		-5	%		58	%		19	%		-56	%		-45	%		-61	%		-10	%
²⁾ Of which in EU		8	%		4	%		7	%		-8	%		-3	%		-5	%		-5	%		-5	%

	2024												2023
Year to date, SEK million	Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar			Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar
North America		72,886			50,892			30,532			13,944			59,230			44,826			31,370			16,927
Europe and Latin America ¹⁾ ²⁾		63,410			44,018			28,868			13,229			64,884			45,666			30,191			14,219
South East Asia, Oceania and India		32,410			23,961			16,259			8,565			53,318			41,514			27,750			13,911
North East Asia		18,761			11,671			7,985			3,424			23,932			14,803			9,425			4,363
Middle East and Africa		20,771			14,457			9,574			4,633			23,739			15,989			9,534			4,186
Other ¹⁾ ²⁾		39,642			29,968			19,955			9,530			38,248			28,672			18,727			8,947

Total		247,880			174,967			113,173			53,325			263,351			191,470			126,997			62,553

¹⁾ Of which in Sweden		2,341			1,744			1,312			729			1,774			1,435			981			611
²⁾ Of which in EU		35,264			24,329			16,172			7,566			34,257			24,109			16,259			8,205

	2024												2023
Year to date, year over year change, percent	Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar			Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar
North America		23	%		14	%		-3	%		-18	%		-38	%		-36	%		-28	%		-18	%
Europe and Latin America^1) 2)		-2	%		-4	%		-4	%		-7	%		-3	%		-1	%		-1	%		-7	%
South East Asia, Oceania and India		-39	%		-42	%		-41	%		-38	%		62	%		91	%		101	%		138	%
North East Asia		-22	%		-21	%		-15	%		-22	%		-10	%		-19	%		-26	%		-20	%
Middle East and Africa		-13	%		-10	%		0	%		11	%		5	%		5	%		0	%		-3	%
Other^1) 2)		4	%		5	%		7	%		7	%		41	%		100	%		157	%		157	%

Total		-6	%		-9	%		-11	%		-15	%		-3	%		3	%		8	%		14	%

^¹) Of which in Sweden		32	%		22	%		34	%		19	%		-45	%		-42	%		-40	%		-10	%
^²) Of which in EU		3	%		1	%		-1	%		-8	%		-4	%		-5	%		-5	%		-5	%



33 Ericsson \| Fourth quarter and full-year report 2024. January 24, 2025.		Accounting policies and Explanatory notes

Net sales by market area by segment


	Q4 2024															Jan-Dec 2024
SEK million	Networks			Cloud Software and Services			Enterprise			Other			Total			Networks			Cloud Software and Services			Enterprise			Other			Total
North America		17,252			4,484			258			0			21,994			57,875			14,326			598			87			72,886
Europe and Latin America		12,358			6,956			78			0			19,392			40,855			22,271			284			0			63,410
South East Asia, Oceania and India		5,720			2,713			16			0			8,449			23,259			9,114			37			0			32,410
North East Asia		5,556			1,507			8			19			7,090			14,477			4,142			18			124			18,761
Middle East and Africa		3,086			3,041			187			0			6,314			10,344			9,761			678			-12			20,771
Other ¹⁾		2,825			756			5,543			550			9,674			11,397			3,021			23,248			1,976			39,642

Total		46,797			19,457			6,090			569			72,913			158,207			62,635			24,863			2,175			247,880

Share of total		64	%		27	%		8	%		1	%		100	%		64	%		25	%		10	%		1	%		100	%

¹⁾	Includes primarily IPR licensing revenues and a major part of segment Enterprise.


	Q4 2024
Sequential change, percent	Networks			Cloud Software and Services			Enterprise			Other			Total
North America		3	%		29	%		77	%		-100	%		8	%
Europe and Latin America		24	%		36	%		0	%		0	%		28	%
South East Asia, Oceania and India		3	%		26	%		220	%		-100	%		10	%
North East Asia		96	%		82	%		100	%		-5	%		92	%
Middle East and Africa		46	%		17	%		16	%		-100	%		29	%
Other		0	%		-4	%		-6	%		13	%		-3	%

Total		17	%		30	%		-4	%		12	%		18	%


	Q4 2024															Jan-Dec2024
Year over year change, percent	Networks			Cloud Software and Services			Enterprise			Other			Total			Networks			Cloud Software and Services			Enterprise			Other			Total
North America		69	%		10	%		211	%		-100	%		53	%		30	%		1	%		125	%		-30	%		23	%
Europe and Latin America		2	%		-1	%		5	%		-100	%		1	%		-3	%		0	%		16	%		-100	%		-2	%
South East Asia, Oceania and India		-36	%		-7	%		100	%		0	%		-28	%		-46	%		-9	%		3	%		-100	%		-39	%
North East Asia		-24	%		-14	%		0	%		-61	%		-22	%		-24	%		-12	%		-51	%		-34	%		-22	%
Middle East and Africa		-27	%		-10	%		61	%		-100	%		-19	%		-20	%		-7	%		79	%		-700	%		-13	%
Other		29	%		69	%		-14	%		4	%		1	%		21	%		55	%		-6	%		-8	%		4	%

Total		4	%		-1	%		-9	%		-9	%		1	%		-8	%		-2	%		-3	%		-14	%		-6	%



34 Ericsson \| Fourth quarter and full-year report 2024. January 24, 2025.		Accounting policies and Explanatory notes

Top 5 countries in sales


	Q4						Jan-Dec
Country, percentage of net sales ¹⁾	2024			2023			2024			2023
United States		39	%		29	%		40	%		32	%
India		4	%		8	%		6	%		12	%
China		4	%		5	%		4	%		4	%
Japan		5	%		6	%		4	%		4	%
United Kingdom		4	%		4	%		4	%		4	%

¹⁾	Based on Jan-Dec 2024. Includes IPR licensing revenues.

IPR licensing revenues by segment by quarter


	2024								2023
Isolated quarters, SEK million	Q4		Q3		Q2		Q1		Q4		Q3		Q2		Q1
Networks		2,870		2,853		3,187		2,539		2,176		2,283		2,603		2,041
Cloud Software and Services		630		626		700		557		478		500		572		448

Total		3,500		3,479		3,887		3,096		2,654		2,783		3,175		2,489


	2024								2023
Year to date, SEK million	Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar		Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar
Networks		11,449		8,579		5,726		2,539		9,103		6,927		4,644		2,041
Cloud Software and Services		2,513		1,883		1,257		557		1,998		1,520		1,020		448

Total		13,962		10,462		6,983		3,096		11,101		8,447		5,664		2,489

Note 3 – Financial income and expenses, net

Financial income and expenses, net


			2024								2023
Isolated quarters, SEK million	Q4		Q3		Q2		Q1		Q4		Q3		Q2		Q1
Financial income		587		724		742		681		518		471		639		517
Financial expenses		-984		-991		-1,029		-1,099		-1,287		-1,024		-942		-865
Net foreign exchange gains/losses		6		-234		-74		-53		-169		-166		-116		-569

Total		-391		-501		-361		-471		-938		-719		-419		-917


	2024								2023
Year to date, SEK million	Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar		Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar
Financial income		2,734		2,147		1,423		681		2,145		1,627		1,156		517
Financial expenses		-4,103		-3,119		-2,128		-1,099		-4,118		-2,831		-1,807		-865
Net foreign exchange gains/losses		-355		-361		-127		-53		-1,020		-851		-685		-569

Total		-1,724		-1,333		-832		-471		-2,993		-2,055		-1,336		-917



35 Ericsson \| Fourth quarter and full-year report 2024. January 24, 2025.		Accounting policies and Explanatory notes

Note 4 – Provisions

Provisions


	2024								2023
Isolated quarters, SEK million	Q4		Q3		Q2		Q1		Q4		Q3		Q2		Q1
Opening balance		10,544		10,200		10,065		11,706		11,535		12,005		10,541		11,588
Additions ¹⁾		3,329		2,761		2,472		783		2,556		1,462		4,760		1,699
Utilization		-1,830		-1,872		-1,448		-2,140		-1,728		-1,422		-2,953		-2,463
Of which restructuring		-1,201		-1,286		-755		-932		-1,175		-994		-423		-274
Reversal of excess amounts		-651		-333		-411		-364		-368		-384		-564		-224
Reclassification, translation difference and other		323		-212		-478		80		-289		-126		221		-59

Closing balance		11,715		10,544		10,200		10,065		11,706		11,535		12,005		10,541

Of which restructuring		3,872		3,897		3,757		2,953		3,720		4,235		4,413		1,096

	2024								2023
Year to date, SEK million	Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar		Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar
Opening balance		11,706		11,706		11,706		11,706		11,588		11,588		11,588		11,588
Additions ¹⁾		9,345		6,016		3,255		783		10,477		7,921		6,459		1,699
Utilization		-7,290		-5,460		-3,588		-2,140		-8,566		-6,838		-5,416		-2,463
Of which restructuring		-4,174		-2,973		-1,687		-932		-2,866		-1,691		-697		-274
Reversal of excess amounts		-1,759		-1,108		-775		-364		-1,540		-1,172		-788		-224
Reclassification, translation difference and other		-287		-610		-398		80		-253		36		162		-59

Closing balance		11,715		10,544		10,200		10,065		11,706		11,535		12,005		10,541

Of which restructuring		3,872		3,897		3,757		2,953		3,720		4,235		4,413		1,096

¹⁾

Additions in 2023 and 2024 mainly relate to restructuring provisions for cost-reduction activities. In Q1 2023 the Company entered into a Plea Agreement with the DOJ and the provision of SEK -2.3 billion (including estimated expenses for the extended compliance monitorship) made in Q4 2022 was utilized in Q2 2023.



36 Ericsson \| Fourth quarter and full-year report 2024. January 24, 2025.		Accounting policies and Explanatory notes

Note 5 – Financial risk management

There have been no changes to the fair value hierarchy categorization from that presented in the latest Annual Report. Where Level 2 and Level 3 fair value hierarchies apply, the inputs and valuation methods used remained unchanged. The book values and fair values of financial instruments are as follows:

Financial instruments


SEK billion	Dec 31 2024								Dec 31 2023
	Fair value hierarchy level								Fair value hierarchy level
	Carrying value		Level 1		Level 2		Level 3		Carrying value		Level 1		Level 2		Level 3
Assets at fair value through profit or loss
Customer finance ¹⁾		4.5		—		—		4.5		6.9		—		—		6.9
Interest-bearing securities		31.7		30.4		1.3		—		19.1		18.6		0.5		—
Cash equivalents ²⁾		24.3		0.3		24.0		—		17.5		0.8		16.7		—
Other financial assets		2.7		0.8		—		1.9		2.1		0.1		—		2.0
Other current assets		0.2		—		0.2		—		1.9		—		1.9		—
Assets at fair value through OCI
Trade receivables		44.2		—		—		44.2		42.2		—		—		42.2
Assets at amortized costs
Interest-bearing securities		0.3		—		—		—		0.4		—		—		—
Other financial assets		0.3		—		—		—		0.6		—		—		—

Total financial assets		108.2								90.7

Financial liabilities at designated FVTPL
Parent company borrowings		-35.7		-19.7		-16.0		—		-38.0		-23.7		-14.3		—
Financial liabilities at FVTPL
Other current liabilities		-3.3		—		-3.3		—		-1.8		—		-1.8		—
Liabilities at amortized cost
Trade payables		-30.2		—		—		—		-27.8		—		—		—
Borrowings		-2.3		—		—		—		-8.9		—		—		—

Total financial liabilities		-71.5								-76.4

¹⁾	Year to date movements of customer finance receivables are as follows: additions of SEK 20.8 billion, disposals and repayments of SEK 23.9 billion and revaluation gain of SEK 0.8 billion.

²⁾	Total Cash and cash equivalent is SEK 43.9 (35.2) billion, of which SEK 24.3 (17.5) billion relating to Cash equivalents are presented in the table above.

Exchange rates used in the consolidation


	Jan-Dec
	2024		2023
SEK/EUR - closing rate		11.49		11.09
SEK/USD - closing rate		10.99		10.01



37 Ericsson \| Fourth quarter and full-year report 2024. January 24, 2025.		Accounting policies and Explanatory notes

Note 6 – Cash flow

Information on investments

Investments in assets subject to depreciation, amortization, impairment and write-downs


	2024								2023
Isolated quarters, SEK million	Q4		Q3		Q2		Q1		Q4		Q3		Q2		Q1
Additions
Property, plant and equipment		667		540		699		434		720		817		806		954
Capitalized development expenses		323		264		327		386		551		485		562		575
IPR, brands and other intangible assets		93		78		45		1		1		—		94		2

Total		1,083		882		1,071		821		1,272		1,302		1,462		1,531

Depreciation, amortization and impairment losses
Property, plant and equipment		1,117		924		1,161		941		1,354		1,331		1,066		1,183
Capitalized development expenses		409		410		349		312		274		222		244		397
Goodwill, IPR, brands and other intangible assets		666		429		15,945		793		846		32,735		853		803
Right-of-use assets		623		529		560		566		609		613		650		709

Total		2,815		2,292		18,015		2,612		3,083		34,901		2,813		3,092


	2024								2023
Year to date, SEK million	Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar		Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar
Additions
Property, plant and equipment		2,340		1,673		1,133		434		3,297		2,577		1,760		954
Capitalized development expenses		1,300		977		713		386		2,173		1,622		1,137		575
IPR, brands and other intangible assets		217		124		46		1		97		96		96		2

Total		3,857		2,774		1,892		821		5,567		4,295		2,993		1,531

Depreciation, amortization and impairment losses
Property, plant and equipment		4,143		3,026		2,102		941		4,934		3,580		2,249		1,183
Capitalized development expenses		1,480		1,071		661		312		1,137		863		641		397
Goodwill, IPR, brands and other intangible assets		17,833		17,167		16,738		793		35,237		34,391		1,656		803
Right-of-use assets		2,278		1,655		1,126		566		2,581		1,972		1,359		709

Total		25,734		22,919		20,627		2,612		43,889		40,806		5,905		3,092

Note 7 – Contingent liabilities and Assets pledged as collateral

Contingent liabilities and Assets pledged as collateral


SEK million	Dec 31 2024		Dec 31 2023
Contingent liabilities		3,559		3,037
Assets pledged as collateral		9,438		8,501



38 Ericsson \| Fourth quarter and full-year report 2024. January 24, 2025.		Accounting policies and Explanatory notes

Note 8 – Share information

Number of shares and earnings per share


	Q4				Jan-Dec
	2024		2023		2024		2023
Number of shares, end of period (million)		3,348		3,344		3,348		3,344
Of which class A-shares (million)		262		262		262		262
Of which class B-shares (million)		3,086		3,082		3,086		3,082
Number of treasury shares, end of period (million)		16		14		16		14
Number of shares outstanding, basic, end of period (million)		3,333		3,330		3,333		3,330
Numbers of shares outstanding, diluted, end of period (million)		3,339		3,337		3,339		3,337
Average number of treasury shares (million)		16		14		15		11
Average number of shares outstanding, basic (million)		3,333		3,330		3,332		3,330
Average number of shares outstanding, diluted (million) ¹⁾		3,339		3,337		3,339		3,337
Earnings (loss) per share, basic (SEK) ²⁾		1.44		1.02		0.01		-7.94
Earnings (loss) per share, diluted (SEK) ¹⁾		1.44		1.02		0.01		-7.94

¹⁾	Potential ordinary shares are not considered when their conversion to ordinary shares would increase earnings per share.

²⁾	Based on net income attributable to owners of the Parent Company.

The dividend for 2023 of SEK 2.70 per share was approved by the AGM on April 3, 2024. The first of two equal dividend payments of SEK 1.35 per share was paid on April 10, 2024, and the second was paid on October 7, 2024.

Note 9 – Employee information

Number of employees


	2024								2023
End of period	Dec 31		Sep 30		Jun 30		Mar 31		Dec 31		Sep 30		Jun 30		Mar 31
North America		9,935		10,272		10,373		10,498		10,744		10,860		11,518		11,765
Europe and Latin America ¹⁾		43,353		44,133		45,085		45,143		45,380		45,821		47,521		47,500
South East Asia, Oceania and India		26,389		26,327		26,558		27,016		27,016		27,648		27,726		27,981
North East Asia		10,426		11,110		11,619		12,084		12,331		12,535		12,602		13,136
Middle East and Africa		4,133		4,142		4,350		4,399		4,481		4,487		4,523		4,549

Total		94,236		95,984		97,985		99,140		99,952		101,351		103,890		104,931

¹⁾ Of which in Sweden		13,420		13,633		14,109		13,849		13,977		14,109		14,713		14,384

Note 10 – Goodwill and Customer relationships, IPR and other intangible assets

Goodwill and Customer relationships, IPR and other intangible assets


	Jan-Dec 2024				Jan-Dec 2023
Year to date, SEK million	Goodwill		Intangible assets		Goodwill		Intangible assets
Opening balance		52,944		22,667		84,570		26,340
Additions		—		376		—		97
Acquired business		—		—		348		306
Amortizations		—		-2,500		—		-3,321
Impairment losses		-1,260		-14,073		-31,897		-19
Translation differences		4,393		1,484		-77		-736

Closing balance		56,077		7,954		52,944		22,667

2024 includes an impairment loss mainly attributed to the Vonage acquisition of SEK -15.1 (-31.9) billion, where the net income impact after tax is SEK -11.4 (-31.9) billion and reported in segment Enterprise. Of the total impairment losses SEK -1.3 (-31.9) billion impacts goodwill, reported on the line-item Other operating income and expenses, and SEK -13.9 (0.0) billion impacts intangible assets, reported on the line-item Research and development expenses of SEK -1.2 billion and Selling and administrative expenses of SEK -12.6 billion.

The impairment charge in the Vonage CGU is a result of the lower market growth outlook. A change in the EBITA assumptions remains the most sensitive to a possible change.



39 Ericsson \| Fourth quarter and full-year report 2024. January 24, 2025.		Accounting policies and Explanatory notes

Note 11 – Information on future divestment

The company has entered into a binding agreement in relation to the sale of iconectiv, which is an acquired US subsidiary (83.3% ownership) forming part of Segment Enterprise and is a provider of network number portability solutions and data exchange services. The sale, which is subject to the customary closing conditions including regulatory approvals, is expected to be completed during the first half of 2025. The assets and liabilities for iconectiv, which are included in the consolidated balance sheet, are shown in the table below.


Goodwill			1,151
Customer relationships, IPR and other intangible assets			93
Property, plant and equipment			214
Right-of-use assets			163
Trade receivables			383
Cash and cash equivalents			537
Other assets			200

Total assets			2,741


Lease liabilities			172
Contract liabilities			226
Current tax liabilities			22
Other liabilities			330

Total liabilities			750



40 Ericsson \| Fourth quarter and full-year report 2024. January 24, 2025.		Accounting policies and Explanatory notes

Alternative performance measures (unaudited)

In this section, the Company presents its Alternative Performance Measures (APMs), which are not recognized measures of financial performance under IFRS. The presentation of APMs has limitations as analytical tools and should not be considered in isolation or as a substitute for related financial measures prepared in accordance with IFRS.

APMs are presented to enhance an investor’s evaluation of ongoing operating results, to aid in forecasting future periods and to facilitate meaningful comparison of results between periods.

Management uses these APMs to, among other things, evaluate ongoing operations in relation to historical results, for internal planning and forecasting purposes and in the calculation of certain performance-based compensation. APMs should not be

viewed as substitutes for income statement or cash flow items computed in accordance with IFRS.

This section also includes a reconciliation of the APMs to the most directly reconcilable line items in the financial statements. For more information about non-IFRS key operating measures, see Ericsson Annual Report 2023.

As from the second quarter some of the APMs have been renamed and the use of “Adjusted” replaces “excluding restructuring charges.” This is a change in nomenclature only. The calculation methodology and reconciliation are the same.

Rolling four quarters of EBIT has been removed and is replaced by Rolling four quarters of EBITA. The main reason for the update is to align with the targets set for the Group on EBITA.



41 Ericsson \| Fourth quarter and full-year report 2024. January 24, 2025.		Alternative performance measures

Sales growth adjusted for comparable units and currency

Sales growth adjusted for the impact of acquisitions and divestments as well as the effects of foreign currency fluctuations. Also named organic sales growth.


	2024												2023
Isolated quarters, year over year change	Q4			Q3			Q2			Q1			Q4			Q3			Q2			Q1
Reported net sales		72,913			61,794			59,848			53,325			71,881			64,473			64,444			62,553
Acquired business		—			—			—			—			—			-1,000			-4,154			-3,894
Net FX impact		683			1,832			22			740			-111			-2,052			-3,662			-3,596
Comparable net sales, excluding FX impact		73,596			63,626			59,870			54,065			71,770			61,421			56,628			55,063
Comparable quarter net sales adj. for acq/div business		71,881			64,473			64,444			62,553			85,980			68,040			62,292			55,061
Organic sales growth (%)		2	%		-1	%		-7	%		-14	%		-17	%		-10	%		-9	%		0	%

	2024												2023
Year to date, year over year change	Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar			Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar
Reported net sales		247,880			174,967			113,173			53,325			263,351			191,470			126,997			62,553
Acquired business		—			—			—			—			-9,048			-9,048			-8,048			-3,894
Net FX impact		3,277			2,594			762			740			-9,421			-9,310			-7,258			-3,596
Comparable net sales, excluding FX impact		251,157			177,561			113,935			54,065			244,882			173,112			111,691			55,063
Comparable quarter net sales adj. for acq/div business		263,351			191,470			126,997			62,553			271,373			185,393			117,353			55,061
Organic sales growth (%)		-5	%		-7	%		-10	%		-14	%		-10	%		-7	%		-5	%		0	%



42 Ericsson \| Fourth quarter and full-year report 2024. January 24, 2025.		Alternative performance measures

Items excluding restructuring charges and impairments of goodwill and intangible assets

Gross income, operating expenses, and EBIT are presented excluding restructuring charges, and for certain measures, as a percentage of net sales. EBIT is also presented excluding restructuring charges and impairments of goodwill and intangible assets.


	2024												2023
Isolated quarters, SEK million	Q4			Q3			Q2			Q1			Q4			Q3			Q2			Q1
Gross income		32,707			28,185			25,815			22,658			28,605			24,728			24,101			24,168
Net sales		72,913			61,794			59,848			53,325			71,881			64,473			64,444			62,553
Gross margin (%)		44.9	%		45.6	%		43.1	%		42.5	%		39.8	%		38.4	%		37.4	%		38.6	%

Gross income		32,707			28,185			25,815			22,658			28,605			24,728			24,101			24,168
Restructuring charges included in cost of sales		1,034			424			466			122			956			548			552			746
Adjusted gross income		33,741			28,609			26,281			22,780			29,561			25,276			24,653			24,914
Net sales		72,913			61,794			59,848			53,325			71,881			64,473			64,444			62,553
Adjusted gross margin (%)		46.3	%		46.3	%		43.9	%		42.7	%		41.1	%		39.2	%		38.3	%		39.8	%

Operating expenses		-24,391			-22,442			-38,084			-20,519			-22,686			-21,629			-24,733			-21,139
Restructuring charges included in R&D expenses		358			966			805			-10			484			197			1,659			91
Restructuring charges included in selling and administrative expenses		234			163			357			93			80			143			922			143
Operating expenses excluding restructuring charges		-23,799			-21,313			-36,922			-20,436			-22,122			-21,289			-22,152			-20,905

EBIT (loss)		7,958			5,774			-13,519			4,100			5,848			-28,908			-312			3,046
Net sales		72,913			61,794			59,848			53,325			71,881			64,473			64,444			62,553
EBIT margin (%)		10.9	%		9.3	%		-22.6	%		7.7	%		8.1	%		-44.8	%		-0.5	%		4.9	%

EBIT (loss)		7,958			5,774			-13,519			4,100			5,848			-28,908			-312			3,046
Total restructuring charges		1,626			1,553			1,628			205			1,520			888			3,133			980
Adjusted EBIT (loss)		9,584			7,327			-11,891			4,305			7,368			-28,020			2,821			4,026
Net sales		72,913			61,794			59,848			53,325			71,881			64,473			64,444			62,553
Adjusted EBIT margin (%)		13.1	%		11.9	%		-19.9	%		8.1	%		10.3	%		-43.5	%		4.4	%		6.4	%
Adjusted EBIT (loss)		9,584			7,327			-11,891			4,305			7,368			-28,020			2,821			4,026
Impairment of goodwill and intangible assets		213			—			15,120			—			—			31,916			—			—
Adjusted EBIT excluding impairments of goodwill and intangible assets		9,797			7,327			3,229			4,305			7,368			3,896			2,821			4,026
Net sales		72,913			61,794			59,848			53,325			71,881			64,473			64,444			62,553
Adjusted EBIT margin excluding impairments of goodwill and intangible assets (%)		13.4	%		11.9	%		5.4	%		8.1	%		10.3	%		6.0	%		4.4	%		6.4	%

	2024												2023
Year to date, SEK million	Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar			Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar
Gross income		109,365			76,658			48,473			22,658			101,602			72,997			48,269			24,168
Net sales		247,880			174,967			113,173			53,325			263,351			191,470			126,997			62,553
Gross margin (%)		44.1	%		43.8	%		42.8	%		42.5	%		38.6	%		38.1	%		38.0	%		38.6	%
Gross income		109,365			76,658			48,473			22,658			101,602			72,997			48,269			24,168
Restructuring charges included in cost of sales		2,046			1,012			588			122			2,802			1,846			1,298			746
Adjusted gross income		111,411			77,670			49,061			22,780			104,404			74,843			49,567			24,914
Net sales		247,880			174,967			113,173			53,325			263,351			191,470			126,997			62,553
Adjusted gross margin (%)		44.9	%		44.4	%		43.4	%		42.7	%		39.6	%		39.1	%		39.0	%		39.8	%
Operating expenses		-105,436			-81,045			-58,603			-20,519			-90,187			-67,501			-45,872			-21,139
Restructuring charges included in R&D expenses		2,119			1,761			795			-10			2,431			1,947			1,750			91
Restructuring charges included in selling and administrative expenses		847			613			450			93			1,288			1,208			1,065			143
Operating expenses excluding restructuring charges		-102,470			-78,671			-57,358			-20,436			-86,468			-64,346			-43,057			-20,905
EBIT (loss)		4,313			-3,645			-9,419			4,100			-20,326			-26,174			2,734			3,046
Net sales		247,880			174,967			113,173			53,325			263,351			191,470			126,997			62,553
EBIT margin (%)		1.7	%		-2.1	%		-8.3	%		7.7	%		-7.7	%		-13.7	%		2.2	%		4.9	%
EBIT (loss)		4,313			-3,645			-9,419			4,100			-20,326			-26,174			2,734			3,046
Total restructuring charges		5,012			3,386			1,833			205			6,521			5,001			4,113			980
Adjusted EBIT (loss)		9,325			-259			-7,586			4,305			-13,805			-21,173			6,847			4,026
Net sales		247,880			174,967			113,173			53,325			263,351			191,470			126,997			62,553
Adjusted EBIT margin (%)		3.8	%		-0.1	%		-6.7	%		8.1	%		-5.2	%		-11.1	%		5.4	%		6.4	%
Adjusted EBIT		9,325			-259			-7,586			4,305			-13,805			-21,173			6,847			4,026
Impairment of goodwill and intangible assets		15,333			15,120			15,120			—			31,916			31,916			—			—
Adjusted EBIT excluding impairments of goodwill and intangible assets		24,658			14,861			7,534			4,305			18,111			10,743			6,847			4,026
Net sales		247,880			174,967			113,173			53,325			263,351			191,470			126,997			62,553
Adjusted EBIT margin excluding impairments of goodwill and intangible assets (%)		9.9	%		8.5	%		6.7	%		8.1	%		6.9	%		5.6	%		5.4	%		6.4	%



43 Ericsson \| Fourth quarter and full-year report 2024. January 24, 2025.		Alternative performance measures

EBITA and EBITA margin / Adjusted EBITA and EBITA margin

Earnings before interest, income tax, amortizations and write-downs of acquired intangibles (including goodwill) also expressed as a percentage of net sales.

Adjusted EBITA also expressed as a percentage of net sales.


	2024												2023
Isolated quarters, SEK million	Q4			Q3			Q2			Q1			Q4			Q3			Q2			Q1
Net income (loss)		4,879			3,881			-10,999			2,613			3,409			-30,491			-597			1,575
Income tax		2,688			1,392			-2,881			1,016			1,501			864			-134			554
Financial income and expenses, net		391			501			361			471			938			719			419			917
Amortizations and write-downs of acquired intangibles		665			429			15,945			793			846			32,736			854			802
Of which segment Enterprise		549			378			15,916			762			813			32,702			788			767
EBITA		8,623			6,203			2,426			4,893			6,694			3,828			542			3,848
Net sales		72,913			61,794			59,848			53,325			71,881			64,473			64,444			62,553
EBITA margin (%)		11.8	%		10.0	%		4.1	%		9.2	%		9.3	%		5.9	%		0.8	%		6.2	%
Restructuring charges		1,626			1,553			1,628			205			1,520			888			3,133			980
Adjusted EBITA		10,249			7,756			4,054			5,098			8,214			4,716			3,675			4,828
Adjusted EBITA margin (%)		14.1	%		12.6	%		6.8	%		9.6	%		11.4	%		7.3	%		5.7	%		7.7	%


	2024												2023
Year to date, SEK million	Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar			Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar
Net income (loss)		374			-4,505			-8,386			2,613			-26,104			-29,513			978			1,575
Income tax		2,215			-473			-1,865			1,016			2,785			1,284			420			554
Financial income and expenses, net		1,724			1,333			832			471			2,993			2,055			1,336			917
Amortizations and write-downs of acquired intangibles		17,832			17,167			16,738			793			35,238			34,392			1,656			802
Of which segment Enterprise		17,605			17,056			16,678			762			35,070			34,257			1,555			767
EBITA		22,145			13,522			7,319			4,893			14,912			8,218			4,390			3,848
Net sales		247,880			174,967			113,173			53,325			263,351			191,470			126,997			62,553
EBITA margin (%)		8.9	%		7.7	%		6.5	%		9.2	%		5.7	%		4.3	%		3.5	%		6.2	%
Restructuring charges		5,012			3,386			1,833			205			6,521			5,001			4,113			980
Adjusted EBITA		27,157			16,908			9,152			5,098			21,433			13,219			8,503			4,828
Adjusted EBITA margin (%)		11.0	%		9.7	%		8.1	%		9.6	%		8.1	%		6.9	%		6.7	%		7.7	%

Additionally, Ericsson provides forward-looking targets for adjusted EBITA margin and Free cash flow before M&A, which are non-IFRS financial measures. Ericsson has not provided quantitative reconciliation of these targets to the most directly comparable IFRS measures because certain information needed to reconcile these non-IFRS financial measures to the most comparable IFRS financial measures are dependent on specific items or impacts that are not yet determined, are subject to incarcerating and variability in timing and amount due to their nature, are outside of Ericsson’s control or cannot be predicted, including items and impacts such as currency exchange rate changes, acquisitions and disposals, and charges such as impairments or acquisition related charges. Accordingly, reconciliation of these non-IFRS forward-looking financial measures to the most directly comparable IFRS financial measures are not available without unreasonable efforts. Such unavailable reconciling items could significantly impact our results of operations and financial condition.

Rolling four quarters of net sales and adjusted EBITA margin (%)

Net sales, EBITA margin and restructuring charges as a sum of last four quarters.


	2024												2023
Rolling four quarters, SEK million	Q4			Q3			Q2			Q1			Q4			Q3			Q2			Q1
Net sales		247,880			246,848			249,527			254,123			263,351			277,450			281,017			279,038
EBITA		22,145			20,216			17,841			15,957			14,912			17,267			21,052			27,976
Restructuring charges		5,012			4,906			4,241			5,746			6,521			5,229			4,422			1,338
Adjusted EBITA		27,157			25,122			22,082			21,703			21,433			22,496			25,474			29,314
Adjusted EBITA margin (%)		11.0	%		10.2	%		8.8	%		8.5	%		8.1	%		8.1	%		9.1	%		10.5	%



44 Ericsson \| Fourth quarter and full-year report 2024. January 24, 2025.		Alternative performance measures

Gross cash and net cash, end of period

Gross cash: Cash and cash equivalents plus interest-bearing securities (current and non-current).

Net cash: Cash and cash equivalents plus interest-bearing securities (current and non-current) less borrowings (current and non-current).


	2024								2023
SEK million	Q4		Q3		Q2		Q1		Q4		Q3		Q2		Q1
Cash and cash equivalents		43,885		37,323		28,736		31,848		35,190		26,900		22,331		34,133
+ Interest-bearing securities, current		12,546		10,063		13,838		8,948		9,584		9,553		8,513		9,259
+ Interest-bearing securities, non-current		19,440		14,806		11,146		11,177		9,931		4,032		4,878		3,925
Gross cash, end of period		75,871		62,192		53,720		51,973		54,705		40,485		35,722		47,317
- Borrowings, current		6,137		3,134		8,067		8,491		17,655		18,772		10,354		11,577
- Borrowings, non-current		31,904		33,524		32,520		32,675		29,218		20,103		23,476		22,167
Net cash, end of period		37,830		25,534		13,133		10,807		7,832		1,610		1,892		13,573

Capital employed

Total assets less non-interest-bearing provisions and liabilities (which includes non-current provisions, deferred tax liabilities, contract liabilities, other non-current liabilities, current provisions, trade payables, current tax liabilities and other current liabilities).


	2024								2023
SEK million	Q4		Q3		Q2		Q1		Q4		Q3		Q2		Q1
Total assets		292,374		272,450		278,486		299,523		297,036		306,349		343,358		345,658
Non-interest-bearing provisions and liabilities
Provisions, non-current		3,511		3,036		2,642		3,952		4,927		5,190		5,263		4,119
Deferred tax liabilities		1,295		1,255		1,295		3,999		3,880		4,343		4,887		4,986
Other non-current liabilities		996		889		865		839		755		812		788		716
Provisions, current		8,204		7,508		7,558		6,113		6,779		6,345		6,742		6,422
Contract liabilities		41,229		39,540		40,704		42,538		34,416		41,234		44,237		47,916
Trade payables		30,173		25,888		26,731		25,305		27,768		30,629		35,463		34,554
Current tax liabilities		3,322		3,821		3,710		3,810		3,561		3,029		2,665		2,478
Other current liabilities		40,677		36,903		38,485		35,786		36,985		43,841		45,637		49,064
Capital employed		162,967		153,610		156,496		177,181		177,965		170,926		197,676		195,403

Capital turnover

Annualized net sales divided by average capital employed.

Annualization factor of four is used for isolated quarter.

Annualization factor of four is used for Jan-Mar, two is used for Jan-Jun, 4/3 is used for Jan-Sep and one is used for Jan-Dec.


	2024								2023
Isolated quarters, SEK million	Q4		Q3		Q2		Q1		Q4		Q3		Q2		Q1
Net sales		72,913		61,794		59,848		53,325		71,881		64,473		64,444		62,553
Annualized net sales		291,652		247,176		239,392		213,300		287,524		257,892		257,776		250,212
Average capital employed
Capital employed at beginning of period		153,610		156,496		177,181		177,965		170,926		197,676		195,403		202,899
Capital employed at end of period		162,967		153,610		156,496		177,181		177,965		170,926		197,676		195,403
Average capital employed		158,289		155,053		166,839		177,573		174,446		184,301		196,540		199,151
Capital turnover (times)		1.8		1.6		1.4		1.2		1.6		1.4		1.3		1.3

	2024								2023
Year to date, SEK million	Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar		Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar
Net sales		247,880		174,967		113,173		53,325		263,351		191,470		126,997		62,553
Annualized net sales		247,880		233,289		226,346		213,300		263,351		255,293		253,994		250,212
Average capital employed
Capital employed at beginning of period		177,965		177,965		177,965		177,965		202,899		202,899		202,899		202,899
Capital employed at end of period		162,967		153,610		156,496		177,181		177,965		170,926		197,676		195,403
Average capital employed		170,466		165,788		167,231		177,573		190,432		186,913		200,288		199,151
Capital turnover (times)		1.5		1.4		1.4		1.2		1.4		1.4		1.3		1.3



45 Ericsson \| Fourth quarter and full-year report 2024. January 24, 2025.		Alternative performance measures

Return on capital employed

The annualized total of EBIT as a percentage of average capital employed.

Annualization factor of four is used for isolated quarter.

Annualization factor of four is used for Jan-Mar, two is used for Jan-Jun, 4/3 is used for Jan-Sep and one is used for Jan-Dec.


	2024												2023
Isolated quarters, SEK million	Q4			Q3			Q2			Q1			Q4			Q3			Q2			Q1
EBIT (loss)		7,958			5,774			-13,519			4,100			5,848			-28,908			-312			3,046
Annualized EBIT (loss)		31,832			23,096			-54,076			16,400			23,392			-115,632			-1,248			12,184
Average capital employed
Capital employed at beginning of period		153,610			156,496			177,181			177,965			170,926			197,676			195,403			202,899
Capital employed at end of period		162,967			153,610			156,496			177,181			177,965			170,926			197,676			195,403
Average capital employed		158,289			155,053			166,839			177,573			174,446			184,301			196,540			199,151
Return on capital employed (%)		20.1	%		14.9	%		-32.4	%		9.2	%		13.4	%		-62.7	%		-0.6	%		6.1	%

	2024												2023
Year to date, SEK million	Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar			Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar
EBIT (loss)		4,313			-3,645			-9,419			4,100			-20,326			-26,174			2,734			3,046
Annualized EBIT (loss)		4,313			-4,860			-18,838			16,400			-20,326			-34,899			5,468			12,184
Average capital employed
Capital employed at beginning of period		177,965			177,965			177,965			177,965			202,899			202,899			202,899			202,899
Capital employed at end of period		162,967			153,610			156,496			177,181			177,965			170,926			197,676			195,403
Average capital employed		170,466			165,788			167,231			177,573			190,432			186,913			200,288			199,151
Return on capital employed (%)		2.5	%		-2.9	%		-11.3	%		9.2	%		-10.7	%		-18.7	%		2.7	%		6.1	%

Equity ratio

Equity expressed as a percentage of total assets.


	2024												2023
SEK million	Q4			Q3			Q2			Q1			Q4			Q3			Q2			Q1
Total equity		92,983			85,355			82,467			107,639			97,408			105,435			132,355			125,832
Total assets		292,374			272,450			278,486			299,523			297,036			306,349			343,358			345,658
Equity ratio (%)		31.8	%		31.3	%		29.6	%		35.9	%		32.8	%		34.4	%		38.5	%		36.4	%

Return on equity

Annualized net income attributable to owners of the Parent Company as a percentage of average stockholders’ equity.

Annualization factor of four is used for isolated quarter.

Annualization factor of four is used for Jan-Mar, two is used for Jan-Jun, 4/3 is used for Jan-Sep and one is used for Jan-Dec.


	2024												2023
Isolated quarters, SEK million	Q4			Q3			Q2			Q1			Q4			Q3			Q2			Q1
Net income (loss) attributable to owners of the Parent Company		4,779			3,814			-11,132			2,559			3,394			-30,670			-686			1,516
Annualized		19,116			15,256			-44,528			10,236			13,576			-122,680			-2,744			6,064
Average stockholders’ equity
Stockholders’ equity, beginning of period		86,630			83,840			109,137			98,673			106,791			133,869			127,396			134,814
Stockholders’ equity, end of period		94,284			86,630			83,840			109,137			98,673			106,791			133,869			127,396
Average stockholders’ equity		90,457			85,235			96,489			103,905			102,732			120,330			130,633			131,105
Return on equity (%)		21.1	%		17.9	%		-46.1	%		9.9	%		13.2	%		-102.0	%		-2.1	%		4.6	%

	2024												2023
Year to date, SEK million	Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar			Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar
Net income (loss) attributable to owners of the Parent Company		20			-4,759			-8,573			2,559			-26,446			-29,840			830			1,516
Annualized		20			-6,345			-17,146			10,236			-26,446			-39,787			1,660			6,064
Average stockholders’ equity
Stockholders’ equity, beginning of period		98,673			98,673			98,673			98,673			134,814			134,814			134,814			134,814
Stockholders’ equity, end of period		94,284			86,630			83,840			109,137			98,673			106,791			133,869			127,396
Average stockholders’ equity		96,479			92,652			91,257			103,905			116,744			120,803			134,342			131,105
Return on equity (%)		0.0	%		-6.8	%		-18.8	%		9.9	%		-22.7	%		-32.9	%		1.2	%		4.6	%



46 Ericsson \| Fourth quarter and full-year report 2024. January 24, 2025.		Alternative performance measures

Free cash flow before M&A / Free cash flow after M&A / Free cash flow before M&A (% of net sales)

Free cash flow before M&A: Cash flow from operating activities less net capital expenditures, other investments (excluding M&A) and repayment of lease liabilities.

Free cash flow after M&A: Cash flow from operating activities less net capital expenditures, other investments and repayment of lease liabilities.

Free cash flow before M&A (% of net sales): Free cash flow before M&A as a percentage of net sales.


	2024												2023
Isolated quarters, SEK million	Q4			Q3			Q2			Q1			Q4			Q3			Q2			Q1
Cash flow from operating activities		17,513			14,397			9,276			5,075			14,482			1,402			-2,882			-5,825
Net capital expenditures and other investments (excl. M&A)
Investments in property, plant and equipment		-667			-540			-699			-434			-720			-817			-806			-954
Sales of property, plant and equipment		14			36			42			24			37			51			42			33
Product development		-323			-264			-327			-386			-551			-485			-562			-575
Other investments ¹⁾		-87			-78			-39			-7			-1			0			-94			-2
Repayment of lease liabilities		-626			-607			-658			-601			-783			-691			-690			-693
Free cash flow before M&A		15,824			12,944			7,595			3,671			12,464			-540			-4,992			-8,016
Acquisitions/divestments of subs and other operations, net		-95			-62			-48			-106			-225			-160			-911			-844
Free cash flow after M&A		15,729			12,882			7,547			3,565			12,239			-700			-5,903			-8,860
Net sales		72,913			61,794			59,848			53,325			71,881			64,473			64,444			62,553
Free cash flow before M&A (% of net sales)		21.7	%		20.9	%		12.7	%		6.9	%		17.3	%		-0.8	%		-7.7	%		-12.8	%

	2024												2023
Year to date, SEK million	Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar			Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar
Cash flow from operating activities		46,261			28,748			14,351			5,075			7,177			-7,305			-8,707			-5,825
Net capital expenditures and other investments (excl. M&A)
Investments in property, plant and equipment		-2,340			-1,673			-1,133			-434			-3,297			-2,577			-1,760			-954
Sales of property, plant and equipment		116			102			66			24			163			126			75			33
Product development		-1,300			-977			-713			-386			-2,173			-1,622			-1,137			-575
Other investments ¹⁾		-211			-124			-46			-7			-97			-96			-96			-2
Repayment of lease liabilities		-2,492			-1,866			-1,259			-601			-2,857			-2,074			-1,383			-693
Free cash flow before M&A		40,034			24,210			11,266			3,671			-1,084			-13,548			-13,008			-8,016
Acquisitions/divestments of subs and other operations, net		-311			-216			-154			-106			-2,140			-1,915			-1,755			-844
Free cash flow after M&A		39,723			23,994			11,112			3,565			-3,224			-15,463			-14,763			-8,860
Net sales		247,880			174,967			113,173			53,325			263,351			191,470			126,997			62,553
Free cash flow before M&A (% of net sales)		16.2	%		13.8	%		10.0	%		6.9	%		-0.4	%		-7.1	%		-10.2	%		-12.8	%

¹⁾	Other investments is part of the line item Other investing activities in the Consolidated cash flow statement. The differences are movements in other interest-bearing assets and the cash flow hedge reserve gain, which are not to be part of the definition of Free cash flow.



47 Ericsson \| Fourth quarter and full-year report 2024. January 24, 2025.		Alternative performance measures

Sales growth by segment adjusted for comparable units and currency


	2024												2023
Isolated quarter, year over year change, percent	Q4			Q3			Q2			Q1			Q4			Q3			Q2			Q1
Networks		5	%		-1	%		-11	%		-19	%		-23	%		-16	%		-13	%		-2	%
Cloud Software and Services		0	%		-1	%		0	%		-2	%		-4	%		5	%		1	%		5	%
Enterprise		-7	%		-3	%		0	%		1	%		7	%		11	%		20	%		19	%
Other		-10	%		-26	%		-5	%		-14	%		-27	%		-8	%		-18	%		0	%

Total		2	%		-1	%		-7	%		-14	%		-17	%		-10	%		-9	%		0	%


	2024												2023
Year to date, year over year change, percent	Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar			Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar
Networks		-6	%		-10	%		-15	%		-19	%		-15	%		-11	%		-8	%		-2	%
Cloud Software and Services		-1	%		-1	%		-1	%		-2	%		1	%		4	%		3	%		5	%
Enterprise		-2	%		-1	%		1	%		1	%		11	%		14	%		20	%		19	%
Other		-15	%		-16	%		-10	%		-14	%		-14	%		-8	%		-8	%		0	%

Total		-5	%		-7	%		-10	%		-14	%		-10	%		-7	%		-5	%		0	%

Sales growth by market area adjusted for comparable units and currency


	2024												2023
Isolated quarter, year over year change, percent	Q4			Q3			Q2			Q1			Q4			Q3			Q2			Q1
North America		54	%		55	%		14	%		-17	%		-43	%		-51	%		-42	%		-26	%
Europe and Latin America		2	%		1	%		-3	%		-8	%		-12	%		-6	%		-3	%		-12	%
South East Asia, Oceania and India		-28	%		-43	%		-44	%		-37	%		7	%		74	%		71	%		132	%
North East Asia		-22	%		-29	%		-3	%		-16	%		11	%		-2	%		-32	%		-19	%
Middle East and Africa		-18	%		-22	%		-8	%		11	%		4	%		10	%		-4	%		-8	%
Other		3	%		4	%		7	%		9	%		-24	%		21	%		38	%		28	%

Total		2	%		-1	%		-7	%		-14	%		-17	%		-10	%		-9	%		0	%


	2024												2023
Year to date, year over year change, percent	Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar			Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar
North America		24	%		15	%		-3	%		-17	%		-41	%		-41	%		-35	%		-26	%
Europe and Latin America		-2	%		-3	%		-5	%		-8	%		-9	%		-7	%		-8	%		-12	%
South East Asia, Oceania and India		-38	%		-41	%		-41	%		-37	%		61	%		88	%		97	%		132	%
North East Asia		-19	%		-16	%		-9	%		-16	%		-9	%		-19	%		-26	%		-19	%
Middle East and Africa		-12	%		-9	%		0	%		11	%		1	%		0	%		-6	%		-8	%
Other		6	%		6	%		8	%		9	%		3	%		27	%		33	%		28	%

Total		-5	%		-7	%		-10	%		-14	%		-10	%		-7	%		-5	%		0	%

Rolling four quarters of net sales by segment


	2024								2023
Rolling four quarters, SEK million	Q4		Q3		Q2		Q1		Q4		Q3		Q2		Q1
Networks		158,207		156,408		157,929		162,690		171,442		185,070		191,680		195,223
Cloud Software and Services		62,635		62,736		63,347		63,275		63,630		64,282		62,931		61,837
Enterprise		24,863		25,471		25,825		25,720		25,745		25,361		23,669		18,993
Other		2,175		2,233		2,426		2,438		2,534		2,737		2,737		2,985

Total		247,880		246,848		249,527		254,123		263,351		277,450		281,017		279,038



48 Ericsson \| Fourth quarter and full-year report 2024. January 24, 2025.		Alternative performance measures

Gross margin by segment by quarter


	2024												2023
Isolated quarters, as percentage of net sales	Q4			Q3			Q2			Q1			Q4			Q3			Q2			Q1
Networks		47.7	%		48.3	%		45.5	%		44.0	%		41.4	%		38.9	%		38.4	%		39.7	%
Cloud Software and Services		37.2	%		37.0	%		35.6	%		37.1	%		36.7	%		35.3	%		32.7	%		33.4	%
Enterprise		54.3	%		52.3	%		51.0	%		48.0	%		44.3	%		48.7	%		46.3	%		47.4	%
Other		-29.5	%		1.8	%		-8.1	%		18.2	%		-26.0	%		-23.6	%		-22.2	%		-2.6	%

Total		44.9	%		45.6	%		43.1	%		42.5	%		39.8	%		38.4	%		37.4	%		38.6	%


	2024												2023
Year to date, as percentage of net sales	Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar			Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar
Networks		46.6	%		46.1	%		44.8	%		44.0	%		39.6	%		39.0	%		39.1	%		39.7	%
Cloud Software and Services		36.8	%		36.5	%		36.3	%		37.1	%		34.7	%		33.8	%		33.0	%		33.4	%
Enterprise		51.4	%		50.5	%		49.6	%		48.0	%		46.7	%		47.5	%		46.8	%		47.4	%
Other		-4.2	%		4.7	%		6.1	%		18.2	%		-18.2	%		-15.6	%		-11.0	%		-2.6	%

Total		44.1	%		43.8	%		42.8	%		42.5	%		38.6	%		38.1	%		38.0	%		38.6	%

EBIT margin by segment by quarter


	2024												2023
Isolated quarters, as percentage of net sales	Q4			Q3			Q2			Q1			Q4			Q3			Q2			Q1
Networks		19.8	%		18.7	%		12.6	%		12.3	%		13.6	%		11.1	%		6.2	%		14.2	%
Cloud Software and Services		5.6	%		-3.0	%		-4.8	%		-2.8	%		9.4	%		0.6	%		-7.9	%		-7.0	%
Enterprise		-30.8	%		-19.0	%		-268.7	%		-26.5	%		-24.5	%		-499.1	%		-26.3	%		-28.6	%
Other		-93.5	%		-14.6	%		-23.2	%		317.5	%		-72.9	%		-45.6	%		-10.8	%		-46.3	%

Total		10.9	%		9.3	%		-22.6	%		7.7	%		8.1	%		-44.8	%		-0.5	%		4.9	%


	2024												2023
Year to date, as percentage of net sales	Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar			Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar
Networks		16.2	%		14.7	%		12.5	%		12.3	%		11.3	%		10.5	%		10.2	%		14.2	%
Cloud Software and Services		-0.7	%		-3.6	%		-3.9	%		-2.8	%		-0.3	%		-4.7	%		-7.5	%		-7.0	%
Enterprise		-88.8	%		-107.6	%		-152.6	%		-26.5	%		-148.9	%		-192.6	%		-27.4	%		-28.6	%
Other		53.6	%		105.7	%		161.1	%		317.5	%		-45.5	%		-36.4	%		-31.1	%		-46.3	%

Total		1.7	%		-2.1	%		-8.3	%		7.7	%		-7.7	%		-13.7	%		2.2	%		4.9	%



49 Ericsson \| Fourth quarter and full-year report 2024. January 24, 2025.		Alternative performance measures

EBITA and EBITA margin by segment by quarter


	2024								2023
Isolated quarters, SEK million	Q4		Q3		Q2		Q1		Q4		Q3		Q2		Q1
Networks		9,375		7,536		4,771		4,179		6,135		4,651		2,678		6,042
Cloud Software and Services		1,107		-436		-721		-355		1,846		96		-1,190		-929
Enterprise		-1,327		-823		-1,508		-820		-830		-600		-891		-945
Other		-532		-74		-116		1,889		-457		-319		-55		-320

Total		8,623		6,203		2,426		4,893		6,694		3,828		542		3,848


	2024												2023
Isolated quarters, as percentage of net sales	Q4			Q3			Q2			Q1			Q4			Q3			Q2			Q1
Networks		20.0	%		18.8	%		12.7	%		12.4	%		13.6	%		11.2	%		6.3	%		14.2	%
Cloud Software and Services		5.7	%		-2.9	%		-4.7	%		-2.7	%		9.4	%		0.6	%		-7.9	%		-6.9	%
Enterprise		-21.8	%		-13.0	%		-23.3	%		-13.7	%		-12.4	%		-9.0	%		-14.0	%		-15.8	%
Other		-93.5	%		-14.6	%		-23.0	%		317.5	%		-72.9	%		-45.6	%		-10.6	%		-46.3	%

Total		11.8	%		10.0	%		4.1	%		9.2	%		9.3	%		5.9	%		0.8	%		6.2	%


	2024								2023
Year to date, SEK million	Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar		Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar
Networks		25,861		16,486		8,950		4,179		19,506		13,371		8,720		6,042
Cloud Software and Services		-405		-1,512		-1,076		-355		-177		-2,023		-2,119		-929
Enterprise		-4,478		-3,151		-2,328		-820		-3,266		-2,436		-1,836		-945
Other		1,167		1,699		1,773		1,889		-1,151		-694		-375		-320

Total		22,145		13,522		7,319		4,893		14,912		8,218		4,390		3,848


	2024												2023
Year to date, as percentage of net sales	Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar			Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar
Networks		16.3	%		14.8	%		12.5	%		12.4	%		11.4	%		10.6	%		10.3	%		14.2	%
Cloud Software and Services		-0.6	%		-3.5	%		-3.8	%		-2.7	%		-0.3	%		-4.6	%		-7.4	%		-6.9	%
Enterprise		-18.0	%		-16.8	%		-18.7	%		-13.7	%		-12.7	%		-12.8	%		-14.8	%		-15.8	%
Other		53.7	%		105.8	%		161.2	%		317.5	%		-45.4	%		-36.4	%		-31.0	%		-46.3	%

Total		8.9	%		7.7	%		6.5	%		9.2	%		5.7	%		4.3	%		3.5	%		6.2	%



50 Ericsson \| Fourth quarter and full-year report 2024. January 24, 2025.		Alternative performance measures

Restructuring charges by function


	2024								2023
Isolated quarters, SEK million	Q4		Q3		Q2		Q1		Q4		Q3		Q2		Q1
Cost of sales		-1,034		-424		-466		-122		-956		-548		-552		-746
Research and development expenses		-358		-966		-805		10		-484		-197		-1,659		-91
Selling and administrative expenses		-234		-163		-357		-93		-80		-143		-922		-143

Total		-1,626		-1,553		-1,628		-205		-1,520		-888		-3,133		-980


	2024								2023
Year to date, SEK million	Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar		Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar
Cost of sales		-2,046		-1,012		-588		-122		-2,802		-1,846		-1,298		-746
Research and development expenses		-2,119		-1,761		-795		10		-2,431		-1,947		-1,750		-91
Selling and administrative expenses		-847		-613		-450		-93		-1,288		-1,208		-1,065		-143

Total		-5,012		-3,386		-1,833		-205		-6,521		-5,001		-4,113		-980

Restructuring charges by segment


	2024								2023
Isolated quarters, SEK million	Q4		Q3		Q2		Q1		Q4		Q3		Q2		Q1
Networks		-738		-585		-481		-95		-1,292		-564		-2,177		-404
of which cost of sales		-645		-163		-214		-68		-816		-408		-376		-367
of which operating expenses		-93		-422		-267		-27		-476		-156		-1,801		-37
Cloud Software and Services		-695		-863		-816		-60		-183		-335		-906		-500
of which cost of sales		-348		-243		-246		-49		-119		-143		-177		-367
of which operating expenses		-347		-620		-570		-11		-64		-192		-729		-133
Enterprise		-150		-38		-285		-38		-27		-5		-52		-89
of which cost of sales		-2		-1		-3		-5		0		-3		-1		-12
of which operating expenses		-148		-37		-282		-33		-27		-2		-51		-77
Other		-43		-67		-46		-12		-18		16		2		13
of which cost of sales		-39		-17		-3		0		-21		6		2		0
of which operating expenses		-4		-50		-43		-12		3		10		0		13

Total		-1,626		-1,553		-1,628		-205		-1,520		-888		-3,133		-980

2024

2023

Year to date, SEK million

Jan-Dec

Jan-Sep

Jan-Jun

Jan-Mar

Jan-Dec

Jan-Sep

Jan-Jun

Jan-Mar

Networks

-1,899

-1,161

-576

-95

-4,437

-3,145

-2,581

-404

of which cost of sales

-1,090

-445

-282

-68

-1,967

-1,151

-743

-367

of which operating expenses

-809

-716

-294

-27

-2,470

-1,994

-1,838

-37

Cloud Software and Services

-2,434

-1,739

-876

-60

-1,924

-1,741

-1,406

-500

of which cost of sales

-886

-538

-295

-49

-806

-687

-544

-367

of which operating expenses

-1,548

-1,201

-581

-11

-1,118

-1,054

-862

-133

Enterprise

-511

-361

-323

-38

-173

-146

-141

-89

of which cost of sales

-11

-9

-8

-5

-16

-13

-12

of which operating expenses

-500

-352

-315

-33

-157

-130

-128

-77

Other

-168

-125

-58

-12

of which cost of sales

-59

-20

-3

-13

of which operating expenses

-109

-105

-55

-12

Total

-5,012

-3,386

-1,833

-205

-6,521

-5,001

-4,113

-980



51 Ericsson \| Fourth quarter and full-year report 2024. January 24, 2025.		Alternative performance measures

Adjusted gross income and gross margin by segment


	2024												2023
Isolated quarters, SEK million	Q4			Q3			Q2			Q1			Q4			Q3			Q2			Q1
Networks		22,971			19,495			17,353			14,919			19,443			16,554			16,694			17,236
Cloud Software and Services		7,591			5,780			5,653			4,883			7,293			5,637			5,121			4,843
Enterprise		3,308			3,308			3,313			2,870			2,968			3,256			2,955			2,853
Other		-129			26			-38			108			-143			-171			-117			-18

Total		33,741			28,609			26,281			22,780			29,561			25,276			24,653			24,914


	2024												2023
Isolated quarters, as percentage of net sales	Q4			Q3			Q2			Q1			Q4			Q3			Q2			Q1
Networks		49.1	%		48.7	%		46.1	%		44.3	%		43.2	%		39.9	%		39.3	%		40.6	%
Cloud Software and Services		39.0	%		38.7	%		37.2	%		37.4	%		37.3	%		36.2	%		33.9	%		36.1	%
Enterprise		54.3	%		52.4	%		51.1	%		48.1	%		44.3	%		48.8	%		46.3	%		47.6	%
Other		-22.7	%		5.1	%		-7.5	%		18.2	%		-22.8	%		-24.5	%		-22.6	%		-2.6	%

Total		46.3	%		46.3	%		43.9	%		42.7	%		41.1	%		39.2	%		38.3	%		39.8	%


	2024												2023
Year to date, SEK million	Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar			Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar
Networks		74,738			51,767			32,272			14,919			69,927			50,484			33,930			17,236
Cloud Software and Services		23,907			16,316			10,536			4,883			22,894			15,601			9,964			4,843
Enterprise		12,799			9,491			6,183			2,870			12,032			9,064			5,808			2,853
Other		-33			96			70			108			-449 -			306			-135			-18

Total		111,411			77,670			49,061			22,780			104,404			74,843			49,567			24,914


	2024												2023
Year to date, as percentage of net sales	Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar			Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar
Networks		47.2	%		46.5	%		45.2	%		44.3	%		40.8	%		39.9	%		40.0	%		40.6	%
Cloud Software and Services		38.2	%		37.8	%		37.3	%		37.4	%		36.0	%		35.4	%		35.0	%		36.1	%
Enterprise		51.5	%		50.6	%		49.6	%		48.1	%		46.7	%		47.6	%		46.9	%		47.6	%
Other		-1.5	%		6.0	%		6.4	%		18.2	%		-17.7	%		-16.0	%		-11.2	%		-2.6	%

Total		44.9	%		44.4	%		43.4	%		42.7	%		39.6	%		39.1	%		39.0	%		39.8	%



52 Ericsson \| Fourth quarter and full-year report 2024. January 24, 2025.		Alternative performance measures

Adjusted EBIT (loss) and EBIT margin by segment


	2024												2023
Isolated quarters, SEK million	Q4			Q3			Q2			Q1			Q4			Q3			Q2			Q1
Networks		10,005			8,077			5,231			4,251			7,404			5,191			4,800			6,424
Cloud Software and Services		1,794			420			88			-303			2,019			421			-294			-442
Enterprise		-1,726			-1,163			-17,139			-1,544			-1,616			-33,297			-1,627			-1,623
Other		-489			-7			-71			1,901			-439			-335			-58			-333

Total		9,584			7,327			-11,891			4,305			7,368			-28,020			2,821			4,026


	2024												2023
Isolated quarters, as percentage of net sales	Q4			Q3			Q2			Q1			Q4			Q3			Q2			Q1
Networks		21.4	%		20.2	%		13.9	%		12.6	%		16.5	%		12.5	%		11.3	%		15.1	%
Cloud Software and Services		9.2	%		2.8	%		0.6	%		-2.3	%		10.3	%		2.7	%		-1.9	%		-3.3	%
Enterprise		-28.3	%		-18.4	%		-264.3	%		-25.9	%		-24.1	%		-499.0	%		-25.5	%		-27.1	%
Other		-85.9	%		-1.4	%		-14.1	%		319.5	%		-70.0	%		-47.9	%		-11.2	%		-48.2	%

Total		13.1	%		11.9	%		-19.9	%		8.1	%		10.3	%		-43.5	%		4.4	%		6.4	%


	2024												2023
Year to date, SEK million	Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar			Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar
Networks		27,564			17,559			9,482			4,251			23,819			16,415			11,224			6,424
Cloud Software and Services		1,999			205			-215			-303			1,704			-315			-736			-442
Enterprise		-21,572			-19,846			-18,683			-1,544			-38,163			-36,547			-3,250			-1,623
Other		1,334			1,823			1,830			1,901			-1,165			-726			-391			-333

Total		9,325			-259			-7,586			4,305			-13,805			-21,173			6,847			4,026


	2024												2023
Year to date, as percentage of net sales	Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar			Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar
Networks		17.4	%		15.8	%		13.3	%		12.6	%		13.9	%		13.0	%		13.2	%		15.1	%
Cloud Software and Services		3.2	%		0.5	%		-0.8	%		-2.3	%		2.7	%		-0.7	%		-2.6	%		-3.3	%
Enterprise		-86.8	%		-105.7	%		-150.0	%		-25.9	%		-148.2	%		-191.9	%		-26.3	%		-27.1	%
Other		61.3	%		113.5	%		166.4	%		319.5	%		-46.0	%		-38.1	%		-32.4	%		-48.2	%

Total		3.8	%		-0.1	%		-6.7	%		8.1	%		-5.2	%		-11.1	%		5.4	%		6.4	%

Rolling four quarters of adjusted EBITA margin by segment (%)


	2024												2023
Rolling four quarters, as percentage of net sales	Q4			Q3			Q2			Q1			Q4			Q3			Q2			Q1
Networks		17.5	%		16.0	%		14.0	%		13.4	%		14.0	%		15.7	%		17.5	%		19.3	%
Cloud Software and Services		3.2	%		3.6	%		3.6	%		3.0	%		2.7	%		0.7	%		-1.1	%		-1.8	%
Enterprise		-16.0	%		-14.1	%		-13.2	%		-11.7	%		-12.0	%		-12.1	%		-14.7	%		-16.4	%
Other		61.4	%		62.0	%		43.6	%		43.9	%		-45.9	%		-146.4	%		-142.7	%		-136.5	%

Total		11.0	%		10.2	%		8.8	%		8.5	%		8.1	%		8.1	%		9.1	%		10.5	%



53 Ericsson \| Fourth quarter and full-year report 2024. January 24, 2025.		Alternative performance measures

Adjusted EBITA and EBITA margin by segment


	2024												2023
Isolated quarters, SEK million	Q4			Q3			Q2			Q1			Q4			Q3			Q2			Q1
Networks		10,113			8,121			5,252			4,274			7,427			5,215			4,855			6,446
Cloud Software and Services		1,802			427			95			-295			2,029			431			-284			-429
Enterprise		-1,177			-785			-1,223			-782			-803			-595			-839			-856
Other		-489			-7			-70			1,901			-439			-335			-57			-333

Total		10,249			7,756			4,054			5,098			8,214			4,716			3,675			4,828


	2024												2023
Isolated quarters, as percentage of net sales	Q4			Q3			Q2			Q1			Q4			Q3			Q2			Q1
Networks		21.6	%		20.3	%		13.9	%		12.7	%		16.5	%		12.6	%		11.4	%		15.2	%
Cloud Software and Services		9.3	%		2.9	%		0.6	%		-2.3	%		10.4	%		2.8	%		-1.9	%		-3.2	%
Enterprise		-19.3	%		-12.4	%		-18.9	%		-13.1	%		-12.0	%		-8.9	%		-13.2	%		-14.3	%
Other		-85.9	%		-1.4	%		-13.9	%		319.5	%		-70.0	%		-47.9	%		-11.0	%		-48.2	%

Total		14.1	%		12.6	%		6.8	%		9.6	%		11.4	%		7.3	%		5.7	%		7.7	%


	2024												2023
Year to date, SEK million	Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar			Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar
Networks		27,760			17,647			9,526			4,274			23,943			16,516			11,301			6,446
Cloud Software and Services		2,029			227			-200			-295			1,747			-282			-713			-429
Enterprise		-3,967			-2,790			-2,005			-782			-3,093			-2,290			-1,695			-856
Other		1,335			1,824			1,831			1,901			-1,164			-725			-390			-333

Total		27,157			16,908			9,152			5,098			21,433			13,219			8,503			4,828


	2024												2023
Year to date, as percentage of net sales	Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar			Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar
Networks		17.5	%		15.8	%		13.3	%		12.7	%		14.0	%		13.1	%		13.3	%		15.2	%
Cloud Software and Services		3.2	%		0.5	%		-0.7	%		-2.3	%		2.7	%		-0.6	%		-2.5	%		-3.2	%
Enterprise		-16.0	%		-14.9	%		-16.1	%		-13.1	%		-12.0	%		-12.0	%		-13.7	%		-14.3	%
Other		61.4	%		113.6	%		166.5	%		319.5	%		-45.9	%		-38.0	%		-32.3	%		-48.2	%

Total		11.0	%		9.7	%		8.1	%		9.6	%		8.1	%		6.9	%		6.7	%		7.7	%

Other ratios


	Q4				Jan-Dec
	2024		2023		2024		2023
Days sales outstanding		-		-		63		63
Inventory turnover days		64		85		83		92
Payable days		64		62		76		75



54 Ericsson \| Fourth quarter and full-year report 2024. January 24, 2025.		Alternative performance measures

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ERIXF Telefon AB LM Ericsson Sweden (PK)