===== SIDA 1 ===== 1 Ericsson | First quarter report 2025. April 15, 2025. First quarter report 2025 Strategic highlights – solid momentum in technology leadership and programmable networks • Extending technology leadership with expanded high-performing and energy-efficient product portfolio. • First high-performing programmable networks partnership for Asia Pacific with Telstra announced. • Announced network API fraud detection deployment by all three USA operators and further Aduna partnerships. Financial highlights – strong growth in gross income and margins • Organic sales were stable, with strong growth in market area Americas offset by declines in other market areas. Reported sales were SEK 55.0 (53.3) b. • Adjusted1 gross income increased to SEK 26.7 (22.8) b. driven by sales growth and strong gross margin expansion. Reported gross income was SEK 26.5 (22.7) b. • Adjusted1 gross margin was 48.5% (42.7%) supported by improvements in all segments with strong operational execution. Reported gross margin was 48.2% (42.5%). • Adjusted1 EBITA was SEK 6.9 (5.1) b. with a 12.6% (9.6%) margin, benefiting from higher gross income. EBITA was SEK 6.7 (4.9) b. Q1 2024 included a one-time gain of SEK 1.9 b. • Net income was SEK 4.2 (2.6) b. EPS diluted was SEK 1.24 (0.77). • Free cash flow before M&A was SEK 2.7 (3.7) b. Börje Ekholm, President and CEO, said: “We sustained solid momentum in Q1, despite a challenging and fast changing macro backdrop, and our results highlight our competitiveness. Our solid execution contributed to a strong 48.5% adjusted gross margin and 12.6% adjusted EBITA margin. We extended our technology leadership position further and are on track to offer a portfolio of 130 radios this year that support programmable networks. In Q1, we announced the first Asia Pacific programmable network, including deployment of 5G Advanced, with Telstra. Looking ahead, we remain confident of our strong position in Mobile Networks and expect Enterprise to stabilize during 2025. In the evolving global trade landscape and macro volatility, we continue to focus on controlling what we can control and delivering to our customers. We are not immune, but we are resilient, with well diversified production close to the customer and the flexibility to adapt to changing conditions over time.” * Sales adjusted for the impact of acquisitions and divestments and effects of foreign currency fluctuations. 1 Adjusted metrics are adjusted to exclude restructuring charges. This is a change in nomenclature only, compared with previous reports. 2 Non-IFRS financial measures are reconciled at the end of this report to the most directly reconcilable line items in the financial statement. SEK b. Q1 2025 Q1 2024 YoY change Q4 2024 QoQ change Net sales 55.0 53.3 3% 72.9 -25%  Organic sales growth * ² - - 0% - - Gross margin ² 48.2% 42.5% - 44.9% - EBIT 5.9 4.1 45% 8.0 -25% EBIT margin ² 10.8% 7.7% - 10.9% - EBITA ² 6.7 4.9 36% 8.6 -23% EBITA margin ² 12.1% 9.2% - 11.8% - Net income 4.2 2.6 61% 4.9 -14% EPS diluted, SEK 1.24 0.77 61% 1.44 -14% Free cash flow before M&A ² 2.7 3.7 -26% 15.8 -83% Net cash, end of period ² 38.6 10.8 258% 37.8 2% Adjusted financial measures ¹ ² Adjusted gross margin 48.5% 42.7% - 46.3% - Adjusted EBIT 6.2 4.3 44% 9.6 -35% Adjusted EBIT margin 11.3% 8.1% - 13.1% - Adjusted EBITA 6.9 5.1 36% 10.2 -32% Adjusted EBITA margin 12.6% 9.6% - 14.1% - ===== SIDA 2 ===== 2 Ericsson | First quarter report 2025. April 15, 2025. Group results 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 g rowth. 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. Group results 1 Non-IFRS financial measures are reconciled at the end of this report to the most directly reconcilable line items in the financial statements. Net sales Reported sales increased by 3% to SEK 55.0 (53.3) b., including a currency benefit of SEK 1.8 b. Networks sales grew by 6% to SEK 35.6 b. Cloud Software and Services sales were stable at SEK 13.0 b. while Enterprise sales declined by -1% to SEK 5.9 b. Sales in segment Other declined by -20% to SEK 0.5 b. Organic sales were stable YoY. Networks sales grew by 3%* with growth in market area Americas offsetting lower sales in the other market areas, where customer investment levels remained low. Cloud Software and Services sales declined by -3%* as growth in market area South East Asia, Oceania and India was offset by sales decline in the other market areas. Sales in segment Enterprise declined by -7%*. Growth in Enterprise Wireless Solutions was more than offset by lower sales in Global Communications Platform, reflecting the decision to focus on more profitable market segments and to reduce activities in some countries. IPR licensing revenue was SEK 3.2 (3.1) b. benefiting from new 5G patent licensing agreements signed in 2024. 82% of IPR licensing revenues are reported in segment Networks, with the remainder in Cloud Software and Services. Opportunities to further grow IPR licensing revenues remain. Gross income and margin Gross margin increased to 48.2% (42.5%) driven primarily by improved gross margin in Networks, benefiting from product and market mix, and improved supply chain efficiency. Gross margin also increased in Enterprise benefiting from prioritization of profitable market segments as well as in Cloud Software and Services, benefiting from product mix and improved delivery performance. Gross income increased to SEK 26.5 (22.7) b. mainly as a result of sales and gross margin growth in Networks. Enterprise gross income increased, reflecting the focus on more profitable market segments. Prior years’ cost-reduction actions positively impacted gross margin and gross income in Mobile Networks. Gross income also had a SEK 0.8 b. currency benefit. Adjusted gross income increased to SEK 26.7 (22.8) b., with a gross margin of 48.5% (42.7%). Research and development (R&D) expenses R&D expenses increased to SEK -12.0 (-11.6) b., including a SEK -0.2 b. currency impact. Increased investments in R&D for technology leadership and operational resiliency were partly offset by savings from cost-reduction actions. Selling and administrative (SG&A) expenses SG&A expenses were SEK -8.6 (-8.7) b., including a SEK -0.3 b. currency impact. Increased investments to improve operational effectiveness in Enterprise were offset by a SEK 0.4 b. benefit from lower amortization of intangible assets. SEK b. Q1 2025 Q1 2024 YoY change Q4 2024 QoQ change Net sales 55.0 53.3 3% 72.9 -25%  Organic sales growth ¹ - - 0% - - Gross income 26.5 22.7 17% 32.7 -19% Gross margin 48.2% 42.5% - 44.9% - Research and development (R&D) expenses -12.0 -11.6 - -13.9 - Selling and administrative expenses -8.6 -8.7 - -10.5 - Impairment losses on trade receivables 0.0 -0.3 - 0.0 - Other operating income and expenses 0.0 2.0 -100% -0.1 - Share in earnings of associated companies 0.0 0.0 - -0.3 - EBIT 5.9 4.1 45% 8.0 -25% EBIT margin ¹ 10.8% 7.7% - 10.9% - EBITA ¹ 6.7 4.9 36% 8.6 -23% EBITA margin ¹ 12.1% 9.2% - 11.8% - Financial income and expenses, net -0.1 -0.5 - -0.4 - Income tax -1.6 -1.0 - -2.7 - Net income 4.2 2.6 61% 4.9 -14% Restructuring charges -0.3 -0.2 - -1.6 - Adjusted financial measures ¹ Adjusted gross margin 48.5% 42.7% - 46.3% - Adjusted EBIT 6.2 4.3 44% 9.6 -35% Adjusted EBIT margin 11.3% 8.1% - 13.1% - Adjusted EBITA 6.9 5.1 36% 10. 2 -32% Adjusted EBITA margin 12.6% 9.6% - 14.1% - ===== SIDA 3 ===== 3 Ericsson | First quarter report 2025. April 15, 2025. Group results Other operating income and expenses Other operating income and expenses were SEK 0.0 (2.0) b. Q1 2024 included a one-time gain of SEK 1.9 b. from the resolution of a commercial dispute. Restructuring charges Restructuring charges amounted to SEK -0.3 (-0.2) b. mainly related to redundancy activities. Gross income included SEK -0.2 (-0.1) b. of restructuring charges, while operating expenses included SEK -0.1 (-0.1) b. of restructuring charges. EBITA EBITA increased to SEK 6.7 (4.9) b. corresponding to an EBITA margin of 12.1% (9.2%). Higher gross income and broadly stable operating expenses were partly offset by lower Other operating income and expenses. Adjusted EBITA increased to SEK 6.9 (5.1) b. with an adjusted EBITA margin of 12.6% (9.6%). EBIT EBIT increased to SEK 5.9 (4.1) b. with an EBIT margin of 10.8% (7.7%). Amortization impacted EBIT by SEK -0.7 (-0.8) b. Adjusted EBIT increased to SEK 6.2 (4.3) b. The adjusted EBIT margin was 11.3% (8.1%). Financial income and expenses, net Financial income and expenses were SEK -0.1 (-0.5) b. Financial net increased primarily as a result of a higher net cash position and lower borrowings. The currency hedge effect was SEK 0.2 (0.1) b. Income tax Taxes were SEK -1.6 (-1.0) b. The effective tax rate was 28% (28%). Net income Net income increased to SEK 4.2 (2.6) b. The increase in EBIT and improved financial net were partly offset by higher taxes. Diluted EPS increased to SEK 1.24 (0.77). Employees The number of employees on March 31, 2025, was 92,866 compared with 94,236 on December 31, 2024. ===== SIDA 4 ===== 4 Ericsson | First quarter report 2025. April 15, 2025. Market area sales Market area sales Changes to market area structure In February 2025, the Company announced a consolidation of its regional structure, organizing the market areas in a more efficient way. This consolidation resulted in two new market areas: Market Area Americas and Market Area Europe, Middle East and Africa. Market Area Americas Sales increased by 20%* YoY, with good growth in North America partly offset by lower sales in Latin America. In North America, sales in Networks grew strongly, benefiting from previous contract wins and accelerated network investments by other customers, in part reflecting tariff uncertainty. Sales in Cloud Software and Services declined, impacted by the timing of project deliverables. In Latin America, sales decreased due to continued intense competition and lower customer network investments. Reported sales increased by 26% YoY. In the quarter, it was announced that AT&T, T-Mobile and Verizon will deliver the first advanced Network APIs for number verification and SIM swap in the United States during 2025, to improve security and fraud detection. Market Area Europe, Middle East and Africa Sales declined by -7%* YoY. Sales in Europe were stable, supported by market share gains and network modernization. Sales declined in the Middle East as investment levels moderated following recent 5G build-outs, while sales in Africa decreased due to continued macroeconomic headwinds. Reported sales decreased by -5% YoY. Market Area South East Asia, Oceania and India Sales decreased by -17%* YoY. Networks sales declined primarily reflecting more normalized operator investment levels in India. Cloud Software and Services sales increased, reflecting timing of project deliverables. Reported sales declined by -16% YoY. In the quarter, the first programmable network in Asia-Pacific was announced with Telstra, a multi-year core modernization was agreed with One New Zealand, and a 5G Core partnership with Bharti Airtel was announced. Market Area North East Asia Sales declined by -8%* 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. Reported sales declined by -6% YoY. Market Area Other Market area Other includes IPR licensing revenues and almost all sales in segment Enterprise. Sales decreased by -6%* due to sales decline in Enterprise. Reported sales decreased by -3% YoY. In the quarter, a 5G private network deployment was announced with Jaguar Land Rover Automotive to leverage Ericsson’s high- speed, low latency, and secure private 5G solutions to enhance UK vehicle production with applications such as vision systems, IoT sensors, and production tools. On April 3, 2025, an IPR partial settlement was announced that will benefit financials from Q2 2025. SEK b. Q1 2025 Q1 2024 YoY change YoY organic growth Q4 2024 QoQ change Americas 20.8 16.4 26% 20% 25.7 -19% Europe, Middle East and Africa 14.5 15.3 -5% -7% 21.9 -34% South East Asia, Oceania and India 7.2 8.6 -16% -17% 8.4 -14% North East Asia 3.2 3.4 -6% -8% 7.1 -55% Other 9.3 9.6 -3% -6% 9.8 -4%  Of which IPR 3.2 3.1 3% - 3.5 -9% Total 55.0 53.3 3% 0% 72.9 -25% ===== SIDA 5 ===== 5 Ericsson | First quarter report 2025. April 15, 2025. Segment results Segment results Mobile Networks – Segment Networks Breakdown of sales into products, services and IPR licensing is available in note 3. Net sales Sales increased by 3%*, driven by good growth in market area Americas, offsetting a sales decline in the other market areas. Reported sales increased by 6% YoY to SEK 35.6 (33.7) b., including a currency benefit of SEK 1.1 b. Sales in North America grew strongly, benefiting from earlier contract wins and accelerated network investments by other customers, in part reflecting tariff uncertainty. Sales declined significantly in market area South East Asia, Oceania and India, mainly due to lower sales in India after relatively strong sales in Q1 2024, as well as in market area Europe, Middle East and Africa due to lower sales in Middle East and Africa. Gross income and margin Adjusted gross margin increased to 51.0% (44.3%), benefiting from product and market mix, as well as supply chain efficiency improvements and prior years’ cost-reduction actions. Adjusted gross income increased to SEK 18.2 (14.9) b. EBITA Adjusted EBITA increased to SEK 7.5 (4.3) b. YoY and the margin was 21.0% (12.7%). The benefit of higher gross income and continued efficiency improvements was partly offset by increased R&D investments. The R&D investments support the strategy to build high-performing programmable networks and ensure continued technology leadership. Net sales rolling four quarters were SEK 160.1 b. and the adjusted EBITA margin rolling four quarters was 19.3%. Mobile Networks – Segment Cloud Software and Services Breakdown of sales into products, services and IPR licensing is available in note 3. Net sales Sales decreased by -3%*. Sales increased in market area South East Asia, Oceania and India, benefiting from strong project deliveries in India, offset by lower sales in the other market areas, reflecting timing of project deliverables. Reported sales were stable at SEK 13.0 b., including a currency benefit of SEK 0.4 b. and slight growth in core networks. Services accounted for 64% of sales. Gross income and margin Adjusted gross margin increased to 39.9% (37.4%), benefiting from product mix, with higher share of software sales, and the strategic focus on improving commercial discipline and delivery performance. Adjusted gross income increased to SEK 5.2 (4.9) b. EBITA ( loss) Adjusted EBITA (loss) was SEK 0.2 (-0.3) b. with a margin of 1.2% (-2.3%). The benefit of improved gross income was further supported by lower operating expenses as a result of prior years’ cost-reduction actions. Strategy execution, with a focus on commercial discipline, acceleration of automation, and scalable software deployments, continues. Net sales rolling four quarters were SEK 62.6 b. and the adjusted EBITA margin rolling four quarters was 4.0%. SEK b. Q1 2025 Q1 2024 YoY change Q4 2024 Net sales 35.6 33.7 6% 46.8   Of which IPR licensing revenues 2.6 2.5 3% 2.9  Organic sales growth - - 3% - Gross income 18.1 14.9 22% 22.3 Gross margin 50.8% 44.0% - 47.7% EBIT 7.0 4.2 69% 9.3 EBIT margin 19.8% 12.3% - 19.8% EBITA 7.4 4.2 76% 9.4 EBITA margin 20.7% 12.4% - 20.0% Restructuring charges -0.1 - 0.1 - -0.7 Adjusted financial measures Adjusted gross margin 51.0% 44.3% - 49.1% Adjusted EBIT 7.1 4.3 68% 10.0 A djusted EBIT margin 20.1% 12.6% - 21.4% Adjusted EBITA 7.5 4.3 75% 10.1 Adjusted EBITA margin 21.0% 12.7% - 21.6% SEK b. Q1 2025 Q1 2024 YoY change Q4 2024 Net sales 13.0 13.0 -1% 19.5   Of which IPR licensing revenues 0.6 0.6 3% 0.6  Organic sales growth - - -3% - Gross income 5.1 4.8 5% 7.2 Gross margin 39.1% 37.1% - 37.2% EBIT (loss) 0.1 -0.4 - 1.1 EBIT margin 0.5% -2.8% - 5.6% EBITA (loss) 0.1 -0.4 - 1.1 EBITA margin 0.6% -2.7% - 5.7% Restructuring charges -0.1 -0.1 - -0.7 Adjusted financial measures Adjusted gross margin 39.9% 37.4% - 39.0% Adjusted EBIT (loss) 0.1 -0.3 - 1.8 Adjusted EBIT margin 1.1% -2.3% - 9.2% Adjusted EBITA (loss) 0.2 -0.3 - 1.8 Adjusted EBITA margin 1.2% -2.3% - 9.3% ===== SIDA 6 ===== 6 Ericsson | First quarter report 2025. April 15, 2025. Segment results Enterprise – Segment Enterprise 1Common costs are included at segment level only (not distributed within the segment). 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 -1% YoY to SEK 5.9 (6.0) b., including a currency benefit of SEK 0.4 b. Reported sales in Enterprise Wireless Solutions grew by 20% YoY, driven by higher subscription and product sales in WWAN and continued growth in Private 5G and Neutral Host solutions. Reported sales in Global Communications Platform declined by -9% YoY, 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 56.2% (48.1%), benefiting from the decision to focus on more profitable market segments in Global Communications Platform. Adjusted gross income increased to SEK 3.3 (2.9) b. reflecting the decision to focus on more profitable market segments, as well as the timing of payments in Technologies and New Businesses. EBITA (loss) Adjusted EBITA (loss) was SEK -0.5 (-0.8) b. The improvement YoY primarily reflected higher gross income. Adjusted EBITA margin was -8.9% (-13.1%). Investments to improve operational effectiveness in Global Communications Platform increased, offset by lower amortization of intangible assets following the impairment in 2024. Net sales rolling four quarters were SEK 24.8 b. and the adjusted EBITA margin rolling four quarters was -15.0%. Segment Other Net sales Reported sales declined to SEK 0.5 (0.6) b. reflecting the divestment of the IoT business, partly offset by a slight increase in sales in the media businesses. Gross income and margin Adjusted gross income was SEK 0.0 (0.1) b. Adjusted gross margin was 4.2% (18.2%). EBITA (loss) Adjusted EBITA (loss) was SEK -0.2 (1.9) b. Q1 2024 included a one-time gain of SEK 1.9 b. from the resolution of a commercial dispute. Net sales rolling four quarters were SEK 2.1 b. SEK b. Q1 2025 Q1 2024 YoY change Q4 2024 Net sales 5.9 6.0 -1% 6.1  Of which Global Comms Platform (Vonage) 3.4 3.7 -9% 3.4  Of which Enterprise Wireless Solutions 1.2 1.0 20% 1.4  Organic sales growth - - -7% - Gross income 3.3 2.9 17% 3.3 Gross margin 56.3% 48.0% - 54.3% EBIT (loss) -1.0 -1.6 - -1.9 EBIT margin -17.1% -26.5% - -30.8% EBITA (loss) -0.6 -0.8 - -1.3 EBITA margin -10.5% -13.7% - -21.8% Restructuring charges -0.1 0.0 - -0.2 Adjusted financial measures Adjusted gross margin 56.2% 48.1% - 54.3%  Global Comms Platform (Vonage) 51.0% 43.0% - 49.6%  Enterprise Wireless Solutions 58.5% 57.2% - 57.5% Adjusted EBIT (loss) -0.9 -1.5 - -1.7 Adjusted EBIT margin -15.5% -25.9% - -28.3% Adjusted EBITA (loss) -0.5 -0.8 - -1.2  Of which Global Comms Platform (Vonage) ¹ -0.5 -0.3 - -0.6  Of which Enterprise Wireless Solutions ¹ -0.3 -0.4 - -0.5 Adjusted EBITA margin -8.9% -13.1% - -19.3% SEK b. Q1 2025 Q1 2024 Yo Y change Q4 2024 Net sales 0.5 0. 6 -20% 0.6  Organic sales growth - - -23% - Gross income 0.0 0. 1 -83% -0.2 Gross margin 3.8% 18. 2% - -29.5% EBIT (loss) -0.2 1. 9 - -0.5 EBIT margin -35.0% 317. 5% - -93.5% EBITA (loss) -0.2 1. 9 - -0.5 EBITA margin -35.0% 317.5% - -93.5% Restructuring charges 0.0 0. 0 - 0.0 Adjusted financial measures Adjusted gross margin 4.2% 18. 2% - -22.7% Adjusted EBIT (loss) -0.2 1. 9 - -0.5 Adjusted EBIT margin -34.6% 319. 5% - -85.9% Adjusted EBITA (loss) -0.2 1. 9 - -0.5 Adjusted EBITA margin -34.6% 319.5% - -85.9% ===== SIDA 7 ===== 7 Ericsson | First quarter report 2025. April 15, 2025. Cash flow and financial position Cash flow and financial position Non-IFRS financial measures are reconciled at the end of this report to the most directly reconcilable line items in the financial statements. Cash flow Cash flow from operating activities was SEK 4.4 (5.1) b. The benefit of increased earnings and lower interest costs was offset by higher operating net assets. Operating net assets increased, as higher variable incentive and restructuring payments were partly offset by lower operating working capital. Operating working capital decreased by SEK 6.2 b., benefiting from annual IPR payments received in the quarter. Cash flow from investing activities was SEK 1.3 (-1.3) b. driven by investments in property, plant and equipment and in product development, offset by a positive effect from interest-bearing securities. Cash flow from financing activities was SEK -0.7 (-8.5) b. mainly driven by repayment of lease liabilities. SEK 1.6 b. of commercial paper was repaid during the quarter, offset by positive effect from received collateral on derivatives. Q1 2024 included SEK -8.4 b. net repayment of long-term borrowings. Financial position Gross cash decreased sequentially by SEK -1.7 b. to SEK 74.2 b. driven by positive free cash flow before M&A, offset by a negative effect of exchange rate changes on cash. Ericsson has unutilized committed credit facilities of SEK 30.1 b. (USD 3.0 b.). The average maturity of parent company borrowings was 3.5 years as of March 31, 2025, compared with 3.7 years as of March 31, 2024. Net cash increased sequentially by SEK 0.8 b. to SEK 38.6 b. The benefit of positive free cash flow was partly offset by negative currency impacts on cash and borrowings. Liabilities for post-employment benefits decreased to SEK 21.8 b. from SEK 24.4 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 12.2 b. (SEK 9.6 b. lower than current DBO). Free cash flow bridge, SEK b. Q1 2025 Q1 2024 Q4 2024 Adjusted EBITA 6.9 5.1 10.2 Depreciation and amortization of non-acquired assets 2.0 1.8 2.1 Restructuring charges -0.3 -0.2 -1.6 Changes in operating net assets -2.8 0.7 7.8 Interest paid/received, taxes paid, and other -1.5 -2.4 -1.1 Cash flow from operating activities 4.4 5.1 17.5 Net capex and other investing activities -1.1 -0.8 -1.1 Repayment of lease liabilities -0.6 -0.6 -0.6 Free cash flow before M&A 2.7 3.7 15.8 Cash flow from operating activities 4.4 5.1 17.5 Cash flow from investing activities 1.3 -1.3 -8.3 Cash flow from financing activities -0.7 -8.5 -5.4 SEK b. Mar 31 2025 Mar 31 2024 Dec 31 2024 Gross cash 74.2 52.0 75.9 - Borrowings, current 5.6 8.5 6.1 - Borrowings, non-current 29.9 32.7 31.9 Net cash 38.6 10.8 37.8 Equity 84.9 107.6 93.0 Equity ratio (%) 30.5% 35.9% 31.8% Capital turnover (times) 1.6 1.4 1.5 Return on capital employed (%) 3.8% -10.5% 2.6% ===== SIDA 8 ===== 8 Ericsson | First quarter report 2025. April 15, 2025. Key data points Key data points Market Dell’Oro estimates that the global RAN equipment market will remain stable in 2025. Source: Dell’Oro Mobile RAN Quarterly Report Q424, March 2025. Ericsson Net sales Reported average seasonality last 3 years (2022–2024), %. 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 There remains increased uncertainty on the outlook for Q2 2025, both in terms of potential for further tariff changes as well as in the broader macroeconomic environment. Networks Sales growth in Q2 2025 is expected to be broadly similar to 3-year average seasonality. Based on our current assessment of announced tariffs, and including a negative impact from tariffs estimated at approximately 1 percentage point, adjusted gross margin in Q2 is expected to be in the range of 48% to 50%. Cloud Software and Services Sales growth in Q2 2025 is expected to be broadly similar to 3-year average seasonality. Q4Q1 Q1Q2 Q2Q3 Q3Q4 Networks -24% +8% +3% +16% Cloud Software and Services -33% +15% +1% +33% ===== SIDA 9 ===== 9 Ericsson | First quarter report 2025. April 15, 2025. Parent Company Parent Company Income after financial items January – March 2025, was SEK 0.3 (2.6) b. At the end of the quarter, gross cash (cash, cash equivalents plus interest-bearing securities, current and non-current) amounted to SEK 61.2 (37.1) b. There was a decrease in intercompany lending of SEK 1.3 b. and an increase in intercompany borrowing of SEK 0.2 b. in the quarter. At the end of the quarter, non-restricted equity amounted to SEK 13.0 (29.8) billion, and total equity amounted to SEK 61.3 (78.0) b. The proposed dividend for 2024 of SEK 2.85 per share was approved by the AGM on March 25, 2025. The dividend will be paid in two installments. The first dividend payment of SEK 1.43 per share was made with the record date of March 27, 2025, with a payment date of April 1, 2025. The second dividend payment of SEK 1.42 per share will be made with the record date September 29, 2025, with an expected payment date of October 2, 2025. The holding of treasury stock on March 31, 2025, was 15,579,561 Class B shares. ===== SIDA 10 ===== 10 Ericsson | First quarter report 2025. April 15, 2025. Other information Other information 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 DOJ in its investigation into matters discussed in the 2019 internal Iraq investigation report and related topics concerning jurisdictions including Iraq, and the Company is 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 Regulation Anti-monopoly Bureau (SAMR) that SAMR has initiated an investigation into Ericsson’s patent licensing practices in China. Ericsson is cooperating with the investigation, which is still in a fact-finding phase. The next steps include continued fact-finding and meetings with SAMR in order to facilitate the authority’s assessment and conclusions. In case of adverse findings, SAMR has the power to impose behavioral and financial remedies. 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 U.S. 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”), President and 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 U.S. 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, President and 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. 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. On February 14, 2025, the District Court ordered Ericsson to produce the 2019 internal Iraq investigation report to the claimants' external counsel. Ericsson has appealed the decision. While proceedings on the merits of the case are stayed pending final resolution of the document production issue, the District Court has scheduled a preliminary ===== SIDA 11 ===== 11 Ericsson | First quarter report 2025. April 15, 2025. Other information hearing for October 16, 2025. Ericsson will continue to vigorously defend this matter. As previously disclosed, Ericsson has been involved in a global patent infringement dispute with certain Lenovo entities since October 2023. On April 3, 2025, the parties reached a partial settlement, entering into a global patent license agreement. The parties have agreed to withdraw from all pending legal proceedings and submit the outstanding portion of the dispute to arbitration. 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 the Company has indemnified against infringement liability or provided guarantees to) and proceedings incidental to the ordinary course of business. PRESS RELEASES Feb 05, 2025 Ericsson appoints Charlotte Levert as Chief People Officer Feb 25, 2025 Ericsson announces changes to the Executive Team and to the Market Area structure Mar 25, 2025 Ericsson’s Annual General Meeting 2025 ===== SIDA 12 ===== 12 Ericsson | First quarter report 2025. April 15, 2025. Risk factors 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 2024 and in the Annual Report on Form 20-F for the year ended December 31, 2024 (in the following, the “Annual Report 2024”). See also the risks set out in the section titled “Forward-looking statements.” Stockholm, April 15, 2025 Telefonaktiebolaget LM Ericsson Börje Ekholm, President and CEO Org. No. 556016-0680 This report has not been reviewed by Telefonaktiebolaget LM Ericsson auditors. Date for next report: July 15, 2025 ===== SIDA 13 ===== 13 Ericsson | First quarter report 2025. April 15, 2025. Editor’s Note Editor’s note Media and analyst briefing Ericsson invites media, investors and analysts to a conference call and live video webcast at 9:00 AM CEST on April 15, 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 ===== SIDA 14 ===== 14 Ericsson | First quarter report 2025. April 15, 2025. Forward-looking statements 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 our ongoing compliance with obligations under the National Security Agreement 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 − Continued growth of mobile communications, the success of our existing and targeted customer base, and our ability to maintain technology leadership − Success in implementing key strategies, including improving profitability, capturing 5G market opportunities, capitalizing on network API and Enterprise opportunities, and expected benefits from restructuring activities − Risks related to cybersecurity and privacy, security and data localization − Industry trends, future characteristics and development of the markets in which we operate − Risks of global operations, including legal and regulatory requirements and uncertainties, and unfavorable lawsuits and legal proceedings − Our future liquidity, capital resources, capital expenditures, cost savings and profitability, and risks related to financial condition − 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 that may be disruptive and incur significant expenses, including our ability to successfully consummate such transactions, protect the value of acquisitions during integration, or achieve the value anticipated with an acquisition − Trends related to our industry, including our regulatory environment, competition and customer structure − Intense competition from existing competitors, and new entrants, including vendor consolidation − Limited number of third-party suppliers, large, multi-year agreements with limited number of key customers, and operator consolidation − Risks related to intellectual property, key employees, and unforeseen risks and disruptions due to natural or man- made events − Risks related to environmental, social and business conduct − 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 − 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 2024, 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, to reflect events or changes in circumstances or changes in expectations or the occurrence of anticipated events, whether as a result of new information, future events or otherwise, except as required by applicable law or stock exchange regulations. ===== SIDA 15 ===== 15 Ericsson | First quarter report 2025. April 15, 2025. Financial statements and other information Financial statements and other information Contents Financial statements (unaudited) ....................................................................................................................................................................................................... 16 Condensed consolidated income statement ..................................................................................................................................................................................................... 16 Condensed statement of comprehensive income (loss) ............................................................................................................................................................................... 16 Condensed consolidated balance sheet.............................................................................................................................................................................................................. 17 Condensed consolidated statement of cash flows ......................................................................................................................................................................................... 18 Condensed consolidated statement of changes in equity ........................................................................................................................................................................... 19 Condensed consolidated income statement – isolated quarters .............................................................................................................................................................. 19 Condensed consolidated statement of cash flows – isolated quarters .................................................................................................................................................. 20 Condensed Parent Company income statement ............................................................................................................................................................................................. 21 Condensed Parent Company statement of comprehensive income ........................................................................................................................................................ 21 Condensed Parent Company balance sheet ..................................................................................................................................................................................................... 22 Accounting policies and Explanatory notes (unaudited) ............................................................................................................................................................. 23 Note 1 – Accounting policies and Other changes ........................................................................................................................................................................................... 23 Note 2 – Segment information .............................................................................................................................................................................................................................. 24 Note 3 – Financial income and expenses, net ................................................................................................................................................................................................. 28 Note 4 – Provisions ..................................................................................................................................................................................................................................................... 29 Note 5 – Financial risk management .................................................................................................................................................................................................................. 30 Note 6 – Cash flow ..................................................................................................................................................................................................................................................... 31 Note 7 – Contingent liabilities and Assets pledged as collateral .............................................................................................................................................................. 31 Note 8 – Share information ..................................................................................................................................................................................................................................... 32 Note 9 – Employee information ............................................................................................................................................................................................................................ 32 Alternative performance measures (unaudited) ............................................................................................................................................................................ 33 Sales growth adjusted for comparable units and currency ......................................................................................................................................................................... 34 Items excluding restructuring charges and impairments of goodwill and intangible assets ......................................................................................................... 35 EBITA and EBITA margin / Adjusted EBITA and EBITA margin ............................................................................................................................................................. 36 Rolling four quarters of net sales and adjusted EBITA margin (%) ......................................................................................................................................................... 36 Gross cash and net cash, end of period ............................................................................................................................................................................................................... 37 Capital employed ......................................................................................................................................................................................................................................................... 37 Capital turnover ............................................................................................................................................................................................................................................................ 37 Return on capital employed ..................................................................................................................................................................................................................................... 38 Equity ratio ..................................................................................................................................................................................................................................................................... 38 Return on equity ........................................................................................................................................................................................................................................................... 38 Operating working capital ........................................................................................................................................................................................................................................ 39 Free cash flow before M&A / Free cash flow after M&A / Free cash flow before M&A (% of net sales) ................................................................................... 39 Sales growth by segment adjusted for comparable units and currency ................................................................................................................................................. 40 Sales growth by market area adjusted for comparable units and currency .......................................................................................................................................... 40 Rolling four quarters of net sales by segment .................................................................................................................................................................................................. 40 Gross margin by segment by quarter ................................................................................................................................................................................................................... 41 EBIT margin by segment by quarter .................................................................................................................................................................................................................... 41 EBITA and EBITA margin by segment by quarter .......................................................................................................................................................................................... 42 Restructuring charges by function ........................................................................................................................................................................................................................ 43 Restructuring charges by segment........................................................................................................................................................................................................................ 43 Adjusted gross income and gross margin by segment .................................................................................................................................................................................. 44 Adjusted EBIT (loss) and EBIT margin by segment ...................................................................................................................................................................................... 45 Rolling four quarters of adjusted EBITA margin by segment (%) ............................................................................................................................................................ 45 Adjusted EBITA and EBITA margin by segment............................................................................................................................................................................................. 46 Operating working capital days ............................................................................................................................................................................................................................. 46 ===== SIDA 16 ===== 16 Ericsson | First quarter report 2025. April 15, 2025. Financial statements Financial statements (unaudited) Condensed consolidated income statement 1) Q1 2024 includes a one-time gain of SEK 1.9 billion from the resolution of a commercial dispute. 2) Based on net income attributable to owners of the Parent Company. 3) Potential ordinary shares are not considered when their conversion to ordinary shares would improve earnings per share. Condensed statement of comprehensive income (loss) SEK million Note 2025 2024 Change Net sales 2 55,025 53,325 3% Cost of sales -28,488 -30,667 -7% Gross income 2 26,537 22,658 17% Research and development expenses -12,032 -11,571 4% Selling and administrative expenses -8,621 -8,691 -1% Impairment losses on trade receivables 32 -257 -112% Operating expenses -20,621 -20,519 0% Other operating income and expenses ¹⁾ 8 1,975 -100% Share of earnings of associated companies 7 -14 -150% Earnings before financial items and income tax (EBIT) 2 5,931 4,100 45% Financial income and expenses, net 3 -74 -471 -84% Income after financial items 5,857 3,629 61% Income tax -1,640 -1,016 61% Net income 4,217 2,613 61% Net income attributable to:  Owners of the Parent Company 4,149 2,559  Non-controlling interests 68 54 Other information  Average number of shares, basic (million) 8 3,333 3,331  Earnings per share, basic (SEK) ²⁾ 8 1.25 0.77  Earnings per share, diluted (SEK) ²⁾ ³⁾ 8 1.24 0.77 Q1 SEK million 2025 2024 Net income 4,217 2,613 Other comprehensive income Items that will not be reclassified to profit or loss Remeasurements of defined benefit pension plans 2,711 5,061 Revaluation of credit risk on borrowings 28 -327 Tax on items that will not be reclassified to profit or loss -476 -926 Items that have been or may be reclassified to profit or loss Cash flow hedge reserve  Gains/losses arising during the period 2,929 -2,583  Reclassification adjustments on gains/losses included in profit or loss 293 40 Translation reserves Changes in translation reserves -7,616 6,074 Reclassification to profit or loss - -103 Share of other comprehensive income of associated companies -50 37 Tax on items that have been or may be reclassified to profit or loss -664 524 Total other comprehensive income (loss), net of tax -2,845 7,797 Total comprehensive income 1,372 10,410 Total comprehensive income (loss) attributable to:  Owners of the Parent Company 1,215 10,439  Non-controlling interests 157 -29 Q1 ===== SIDA 17 ===== 17 Ericsson | First quarter report 2025. April 15, 2025. Financial statements Condensed consolidated balance sheet Mar 31 Dec 31 SEK million Note 2025 2024 Assets Non-current assets Intangible assets  Capitalized development expenses 4,409 4,593  Goodwill 51,511 56,077  Customer relationships, IPR and other intangible assets 6,962 7,954 Property, plant and equipment 9,810 10,545 Right-of-use assets 5,998 6,487 Financial assets  Equity in associated companies 1,294 1,179  Other investments in shares and participations 5 1,777 2,029  Customer finance, non-current 5 27 190  Interest-bearing securities, non-current 5 24,436 19, 440  Other financial assets, non-current 5 5,726 5,161 Deferred tax assets 22,537 24,412 134,487 138,067 Current assets Inventories 27,649 27,125 Contract assets 5,735 6,924 Trade receivables 5 41,428 44,151 Customer finance, current 5 2,396 4,332 Current tax assets 5,126 6,083 Other current receivables 11,420 9,261 Interest-bearing securities, current 5 5,147 12,546 Cash and cash equivalents 5 44,590 43,885 143,491 154,307 Total assets 277,978 292,374 Equity and liabilities Equity Stockholders' equity 86,039 94,284 Non-controlling interest in equity of subsidiaries -1,181 -1,301 84,858 92,983 Non-current liabilities Post-employment benefits 21,830 24,448 Provisions, non-current 4 2,541 3,511 Deferred tax liabilities 1,365 1,295 Borrowings, non-current 5 29,929 31,904 Lease liabilities, non-current 4,970 5,363 Other non-current liabilities 888 996 61,523 67,517 Current liabilities Provisions, current 4 6,552 8,204 Borrowings, current 5 5,597 6,137 Lease liabilities, current 1,922 2,132 Contract liabilities 46,757 41,229 Trade payables 5 26,450 30,173 Current tax liabilities 2,664 3,322 Other current liabilities 41,655 40,677 131,597 131,874 Total equity and liabilities 277,978 292,374 ===== SIDA 18 ===== 18 Ericsson | First quarter report 2025. April 15, 2025. Financial statements Condensed consolidated statement of cash flows Jan-Dec SEK million Note 2025 2024 2024 Operating activities Net income 4,217 2,613 374 Adjustments for  Taxes 1,754 1,273 2,540  Earnings/dividends in associated companies 2 3 459  Depreciation, amortization and impairment losses 6 2,750 2,612 25, 734  Other 115 340 1,884 8,838 6,841 30,991 Changes in operating net assets Inventories -2,268 2,735 10,208 Customer finance, current and non-current 1,864 2,134 2,755 Trade receivables and contract assets -312 236 2,576 Trade payables -1,572 -4,022 496 Provisions and post-employment benefits -2,315 -2,270 -53 Contract liabilities 8,596 6,520 4,598 Other operating assets and liabilities, net -6,830 -4,600 2,237 -2,837 733 22,817 Interest received 676 391 1,800 Interest paid -771 -1,297 -3,043 Taxes paid -1,548 -1,593 -6,304 Cash flow from operating activities 4,358 5,075 46,261 Investing activities Investments in property, plant and equipment 6 -729 -434 -2,340 Sales of property, plant and equipment 39 24 116 Acquisitions/divestments of subsidiaries and other operations, net -4 -106 -311 Product development 6 -307 -386 -1,300 Purchase of interest-bearing securities -6,520 -1,618 -19,622 Sales of interest-bearing securities 5,704 2,204 11, 247 Other investing activities 6 3,122 -1,025 -3,742 Cash flow from investing activities 1,305 -1,341 -15,952 Financing activities Proceeds from issuance of borrowings - 1,967 3,615 Repayment of borrowings -79 -10,401 - 15,917 Dividends paid - - -9,233 Repayment of lease liabilities -593 -601 -2,492 Other financing activities -60 538 162 Cash flow from financing activities -732 -8,497 -23,865 Effect of exchange rate changes on cash -4,226 1,421 2,251 Net change in cash and cash equivalents 705 -3,342 8,695 Cash and cash equivalents, beginning of period 43,885 35,190 35,190 Cash and cash equivalents, end of period 44,590 31,848 43,885 Q1 ===== SIDA 19 ===== 19 Ericsson | First quarter report 2025. April 15, 2025. Financial statements Condensed consolidated statement of changes in equity 1) Jan-Mar 2025 includes accrual of SEK 9,535 million for the proposed dividend approved by the Annual General Meeting on March 25, 2025. Condensed consolidated income statement – isolated quarters 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. 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. Jan-Dec SEK million 2025 2024 2024 Opening balance 92,983 97,408 97,408 Total comprehensive income 1, 372 10,410 4,715 Sale/repurchase of own shares - - -21 Share issue, net - - 21 Long-term variable compensation plans 38 25 93 Dividends to shareholders ¹⁾ -9,535 -204 - 9,233 Closing balance 84,858 107,639 92,983 Jan-Mar Isolated quarters, SEK million Q1 Q4 Q3 Q2 Q1 Net sales 55,025 72,913 61,794 59,848 53,325 Cost of sales -28,488 -40,206 -33,609 -34,033 -30,667 Gross income 26,537 32,707 28,185 25,815 22,658 Research and development expenses ¹⁾ -12,032 -13,877 -13,140 -14,926 -11,571 Selling and administrative expenses ¹⁾ -8,621 -10,512 -9,380 -23,074 -8,691 Impairment losses on trade receivables 32 -2 78 -84 -257 Operating expenses -20,621 -24,391 -22,442 -38,084 -20,519 Other operating income and expenses ²⁾ 8 -50 4 -1,299 1,975 Share of earnings of associated companies 7 -308 27 49 -14 Earnings (loss) before financial items and income tax (EBIT) 5,931 7,958 5,774 -13,519 4,100 Financial income and expenses, net -74 -391 -501 -361 -471 Income (loss) after financial items 5,857 7,567 5,273 -13,880 3,629 Income tax ¹⁾ -1,640 -2,688 -1,392 2,881 -1,016 Net income (loss) 4,217 4,879 3,881 -10,999 2,613 Net income (loss) attributable to:  Owners of the Parent Company 4,149 4,779 3,814 -11,132 2,559  Non-controlling interests 68 100 67 133 54 Other information  Average number of shares, basic (million) 3,333 3,333 3,333 3,332 3,331  Earnings (loss) per share, basic (SEK) ³⁾ 1.25 1.44 1.14 -3.34 0.77  Earnings (loss) per share, diluted (SEK) ³⁾ ⁴⁾ 1.24 1.44 1.14 -3.34 0.77 2025 2024 ===== SIDA 20 ===== 20 Ericsson | First quarter report 2025. April 15, 2025. Financial statements Condensed consolidated statement of cash flows – isolated quarters Isolated quarters, SEK million Q1 Q4 Q3 Q2 Q1 Operating activities Net income (loss) 4,217 4,879 3,881 -10,999 2,613 Adjustments for  Taxes 1,754 2,563 1,397 -2,693 1,273  Earnings/dividends in associated companies 2 387 110 -41 3  Depreciation, amortization and impairment losses 2,750 2,815 2,292 18,015 2,612  Other 115 528 592 424 340 8,838 11,172 8,272 4,706 6,841 Changes in operating net assets Inventories -2,268 2,876 1,358 3,239 2,735 Customer finance, current and non-current 1,864 -225 1,211 -365 2,134 Trade receivables and contract assets -312 -3,041 3,524 1,857 236 Trade payables -1,572 2,580 -3 1,941 -4,022 Provisions and post-employment benefits -2,315 958 955 304 -2,270 Contract liabilities 8,596 -407 -117 -1,398 6,520 Other operating assets and liabilities, net -6,830 5,088 859 890 -4,600 -2,837 7,829 7,787 6,468 733 Interest received 676 518 506 385 391 Interest paid -771 -543 - 526 -677 -1,297 Taxes paid -1,548 -1,463 -1,642 -1,606 -1,593 Cash flow from operating activities 4,358 17,513 14,397 9,276 5,075 Investing activities Investments in property, plant and equipment -729 -667 -540 -699 -434 Sales of property, plant and equipment 39 14 36 42 24 Acquisitions/divestments of subs. and other operations, net -4 -95 -62 -48 -106 Product development -307 -323 -264 -327 -386 Purchase of interest-bearing securities -6,520 -6,642 -5,517 -5,845 -1,618 Sales of interest-bearing securities 5,704 2,605 4,937 1,501 2,204 Other investing activities 3,122 -3,219 1,113 -611 -1,025 Cash flow from investing activities 1,305 -8,327 -297 -5,987 -1,341 Financing activities Proceeds from issuance of borrowings - 485 1,161 2 1,967 Repayment of borrowings -79 - 373 -5,127 -16 -10,401 Dividends paid - -4,514 -8 -4,711 - Repayment of lease liabilities -593 -626 -607 -658 -601 Other financing activities -60 -419 356 -313 538 Cash flow from financing activities -732 -5,447 -4,225 -5,696 -8,497 Effect of exchange rate changes on cash -4,226 2,823 -1,288 -705 1,421 Net change in cash and cash equivalents 705 6,562 8,587 -3,112 -3,342 Cash and cash equivalents, beginning of period 43,885 37,323 28,736 31,848 35,190 Cash and cash equivalents, end of period 44,590 43,885 37,323 28,736 31,848 2025 2024 ===== SIDA 21 ===== 21 Ericsson | First quarter report 2025. April 15, 2025. Financial statements Condensed Parent Company income statement Condensed Parent Company statement of comprehensive income Jan-Dec SEK million 2025 2024 2024 Net sales - - - Cost of sales - - - Gr oss income - - - Operating expenses -437 -370 -1,320 Other operating income and expenses 657 2,658 4,827 EBIT 220 2,288 3,507 Financial net 62 357 3,138 Income after financial items 282 2,645 6,645 Transfers to (-) / from untaxed reserves - - -2,415 Income tax -69 -453 -488 Net income 213 2,192 3,742 Q1 Jan-Dec SEK million 2025 2024 2024 Net income 213 2,192 3,742 Other comprehensive income, net of tax - - - Total comprehensive income 213 2,192 3,742 Q1 ===== SIDA 22 ===== 22 Ericsson | First quarter report 2025. April 15, 2025. Financial statements Condensed Parent Company balance sheet Mar 31 Dec 31 SEK million 2025 2024 Assets Fixed assets Intangible assets 155 160 Tangible assets 280 295 Financial assets ¹⁾ 125,940 121,721 126,375 122,176 Current assets Receivables 17,505 19,876 Short-term investments 5,008 12,222 Cash and cash equivalents 31,712 27,073 54,225 59,171 Total assets 180,600 181,347 Stockholders' equity, provisions and liabilities Equity Restricted equity 48,235 48,235 Non-restricted equity 13,049 22,335 61,284 70,570 Provisions 107 144 Non-current liabilities 29,914 31,884 Current liabilities 89,295 78,749 Total stockholders' equity, provisions and liabilities 180,600 181,347 ¹⁾ Of which interest-bearing securities, non-c urrent 24,436 19,439 ===== SIDA 23 ===== 23 Ericsson | First quarter report 2025. April 15, 2025. Accounting policies and Explanatory notes Accounting policies and Explanatory notes (unaudited) Note 1 – Accounting policies and Other changes Accounting policies The Group This condensed consolidated interim financial report for the reporting period ended March 31, 2025, 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, 2024, and should be read in conjunction with that annual report. Amendments to IFRS standards that became effective during 2025 do not have a material impact on the result and financial position of the Company. Changes applied in Q1 2025 New market area structure implemented in Q1 2025 On February 25, 2025, it was announced that effective March 15, 2025, two new market areas are created – market area Americas and market area Europe, Middle East and Africa. This is done by merging market area Europe and Latin America, market area North America, and market area Middle East and Africa. From Q1 2025 the following market area structure is presented: - Americas - Europe, Middle East and Africa - South East Asia, Oceania and India - North East Asia The financial reporting by market areas is reflecting the new structure and prior quarters have been restated accordingly. Updated definitions of Alternative performance measures (APMs) From Q1 2025 the Company has decided to update the definitions of the following APMs. The Company believes the updated definitions better reflect the underlying results of the Company's operations over time. - Return on capital employed (ROCE) - Capital turnover (CTO) - Inventory turnover days (ITO) - Days sales outstanding (DSO) - Days payables outstanding (DPO) - Operating working capital days The APMs are now based on a rolling average rather than an average of the beginning and the end of the period. Prior periods have been updated accordingly. In addition, Operating working capital has been added as an APM. For more information, see the APM section in this report. ===== SIDA 24 ===== 24 Ericsson | First quarter report 2025. April 15, 2025. Accounting policies and Explanatory notes Note 2 – Segment information Net sales by segment by quarter Isolated quarters, SEK million Q1 Q4 Q3 Q2 Q1 Networks 35,643 46,797 40,016 37,679 33,715  Of which Products 28,060 36,592 31,242 28,583 25,397  Of which Services 7,583 10,205 8,774 9,096 8,318 Cloud Software and Services 12,975 19,457 14,953 15,180 13,045  Of which Products 4,719 7,826 5,240 4,814 4,529  Of which Services 8,256 11,631 9,713 10,366 8,516 Enterprise 5,933 6,090 6,319 6,484 5,970 Other 474 569 506 505 595 Total 55,025 72,913 61,794 59,848 53,325 Sequential change, percent Q1 Q4 Q3 Q2 Q1 Networks -24% 17% 6% 12% -25%  Of which Products -23% 17% 9% 13% -27%  Of which Services -26% 16% -4% 9% -19% Cloud Software and Services -33% 30% -1% 16% -33%  Of which Products -40% 49% 9% 6% -36%  Of which Services -29% 20% -6% 22% -32% Enterprise -3% -4% -3% 9% -11% Other -17% 12% 0% -15% -5% Total -25% 18% 3% 12% -26% Year over year change, percent Q1 Q4 Q3 Q2 Q1 Networks 6% 4% -4% -11% -21%  Of which Products 10% 5% -2% -13% -21%  Of which Services -9% -1% -10% -6% -19% Cloud Software and Services -1% -1% -4% 0% -3%  Of which Products 4% 11% 5% -7% 2%  Of which Services -3% -7% -8% 4% -5% Enterprise -1% -9% -5% 2% 0% Other -20% -9% -28% -2% -14% Total 3% 1% -4% -7% -15% Year to date, SEK million Jan-Mar Jan-Dec Jan-Sep Jan-Jun Jan-Mar Networks 35,643 158,207 111,410 71,394 33,715  Of which Products 28,060 121,814 85,222 53,980 25,397  Of which Services 7,583 36,393 26,188 17,414 8,318 Cloud Software and Services 12,975 62,635 43,178 28,225 13,045  Of which Products 4,719 22,409 14,583 9,343 4,529  Of which Services 8,256 40,226 28,595 18,882 8,516 Enterprise 5,933 24,863 18,773 12,454 5,970 Other 474 2,175 1,606 1,100 595 Total 55,025 247,880 174,967 113,173 53,325 Year over year change, percent Jan-Mar Jan-Dec Jan-Sep Jan-Jun Jan-Mar Networks 6% -8% -12% -16% -21%  Of which Products 10% -7% -12% -17% -21%  Of which Services -9% -9% -12% -13% -19% Cloud Software and Services -1% -2% -2% -1% -3%  Of which Products 4% 3% 0% -3% 2%  Of which Services -3% -4% -3% 0% -5% Enterprise -1% -3% -1% 1% 0% Other -20% -14% -16% -9% -14% Total 3% -6% -9% -11% -15% 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 ===== SIDA 25 ===== 25 Ericsson | First quarter report 2025. April 15, 2025. Accounting policies and Explanatory notes Gross income by segment by quarter EBIT (loss) by segment by quarter Isolated quarters, SEK million Q1 Q4 Q3 Q2 Q1 Networks 18,112 22,326 19,332 17,139 14,851 Cloud Software and Services 5,069 7,243 5,537 5,407 4,834 Enterprise 3,338 3,306 3,307 3,310 2,865 Other 18 -168 9 -41 108 Total 26,537 32,707 28,185 25,815 22,658 2025 2024 Year to date, SEK million Jan-Mar Jan-Dec Jan-Sep Jan-Jun Jan-Mar Networks 18,112 73,648 51,322 31,990 14,851 Cloud Software and Services 5,069 23,021 15,778 10,241 4,834 Enterprise 3,338 12,788 9,482 6,175 2,865 Other 18 -92 76 67 108 Total 26,537 109,365 76,658 48,473 22,658 2025 2024 Isolated quarters, SEK million Q1 Q4 Q3 Q2 Q1 Networks 7,040 9,267 7,492 4,750 4,156 Cloud Software and Services 71 1,099 -443 -728 -363 Enterprise -1,014 -1,876 -1,201 -17,424 -1,582 Other -166 -532 -74 -117 1,889 Total 5,931 7,958 5,774 -13,519 4,100 2025 2024 Year to date, SEK million Jan-Mar Jan-Dec Jan-Sep Jan-Jun Jan-Mar Networks 7,040 25,665 16,398 8,906 4,156 Cloud Software and Services 71 -435 -1,534 -1,091 -363 Enterprise -1,014 -22,083 -20,207 -19,006 -1,582 Other -166 1,166 1,698 1,772 1,889 Total 5,931 4,313 -3,645 -9,419 4,100 2025 2024 ===== SIDA 26 ===== 26 Ericsson | First quarter report 2025. April 15, 2025. Accounting policies and Explanatory notes Net sales by market area by quarter 3) 2024 has been restated to reflect the changes in market area structure, see note 1 "Accounting policies and Other changes" for more information. Isolated quarters, SEK million Q1 Q4 Q3 Q2 Q1 Americas 20,762 25,737 23,366 19,838 16,449 Europe, Middle East and Africa ¹⁾ ²⁾ 14,475 21,865 16,893 17,265 15,287 South East Asia, Oceania and India 7,226 8,449 7,702 7,694 8,565 North East Asia 3,215 7,090 3,686 4,561 3,424 Other ¹⁾ ²⁾ 9,347 9,772 10,147 10,490 9,600 Total 55,025 72,913 61,794 59,848 53,325 ¹⁾ Of which in Sweden 461 597 432 583 729 ²⁾ Of which in EU 7,566 10,935 8,157 8,606 7,566 2025 2024 ³⁾ Sequential change, percent Q1 Q4 Q3 Q2 Q1 Americas -19% 10% 18% 21% -12% Europe, Middle East and Africa ¹⁾ ²⁾ -34% 29% -2% 13% -33% South East Asia, Oceania and India -14% 10% 0% -10% -27% North East Asia -55% 92% -19% 33% -62% Other ¹⁾ ²⁾ -4% -4% -3% 9% -1% Total -25% 18% 3% 12% -26% ¹⁾ Of which in Sweden -23% 38% -26% -20% 115% ²⁾ Of which in EU -31% 34% -5% 14% -25% 2025 2024 ³⁾ Year over year change, percent Q1 Q4 Q3 Q2 Q1 Americas 26% 38% 37% 11% -17% Europe, Middle East and Africa ¹⁾ ²⁾ -5% -4% -8% -3% -1% South East Asia, Oceania and India -16% -28% -44% -44% -38% North East Asia -6% -22% -31% -10% -22% Other ¹⁾ ²⁾ -3% 1% 1% 6% 6% Total 3% 1% -4% -7% -15% ¹⁾ Of which in Sweden -37% 76% -5% 58% 19% ²⁾ Of which in EU 0% 8% 4% 7% -8% 2025 2024 ³⁾ Year to date, SEK million Jan-Mar Jan-Dec Jan-Sep Jan-Jun Jan-Mar Americas 20,762 85,390 59,653 36,287 16,449 Europe, Middle East and Africa ¹⁾ ²⁾ 14,475 71,310 49,445 32,552 15,287 South East Asia, Oceania and India 7,226 32,410 23,961 16,259 8,565 North East Asia 3,215 18,761 11,671 7,985 3,424 Other ¹⁾ ²⁾ 9,347 40,009 30,237 20,090 9,600 Total 55,025 247,880 174,967 113,173 53,325 ¹⁾ Of which in Sweden 461 2,341 1,744 1,312 729 ²⁾ Of which in EU 7,566 35,264 24,329 16,172 7,566 2025 2024 ³⁾ Year to date, year over year change, percent Jan-Mar Jan-Dec Jan-Sep Jan-Jun Jan-Mar Americas 26% 16% 9% -4% -17% Europe, Middle East and Africa ¹⁾ ²⁾ -5% -4% -4% -2% -1% South East Asia, Oceania and India -16% -39% -42% -41% -38% North East Asia -6% -22% -21% -15% -22% Other ¹⁾ ²⁾ -3% 4% 4% 6% 6% Total 3% -6% -9% -11% -15% ¹⁾ Of which in Sweden -37% 32% 22% 34% 19% ²⁾ Of which in EU 0% 3% 1% -1% -8% 2025 2024 ³⁾ ===== SIDA 27 ===== 27 Ericsson | First quarter report 2025. April 15, 2025. Accounting policies and Explanatory notes Net sales by market area by segment 1) Includes primarily IPR licensing revenues and a major part of segment Enterprise. SEK million Networks Cloud Software and Services Enterprise Other Total Americas 17,163 3,473 126 0 20,762 Europe, Middle East and Africa 8,284 5,952 239 0 14,475 South East Asia, Oceania and India 5,211 2,008 7 0 7,226 North East Asia 2,345 863 7 0 3,215 Other ¹ 2,640 679 5,554 474 9,347 Total 35,643 12,975 5,933 474 55,025 Share of total 65% 24% 11% 0% 100% Q1 2025 Sequential change, percent Networks Cloud Software and Services Enterprise Other Total Americas -12% -41% -52% - -19% Europe, Middle East and Africa -36% -31% -8% - -34% South East Asia, Oceania and India -9% -26% -56% - -14% North East Asia -58% -43% -13% -100% -55% Other -9% -14% 0% -14% -4% Total -24% -33% -3% -17% -25% Q1 2025 Year over year change, percent Networks Cloud Software and Services Enterprise Other Total Americas 38% -10% 100% -100% 26% Europe, Middle East and Africa -12% 3% 80% -100% -5% South East Asia, Oceania and India -23% 10% -30% - -16% North East Asia -6% -3% 40% -100% -6% Other -2% -1% -4% 2% -3% Total 6% -1% -1% -20% 3% Q1 2025 ===== SIDA 28 ===== 28 Ericsson | First quarter report 2025. April 15, 2025. Accounting policies and Explanatory notes Top 5 countries in sales 1) Based on Jan-Mar 2025. Includes IPR licensing revenues. IPR licensing revenues by segment by quarter Note 3 – Financial income and expenses, net Financial income and expenses, net Jan-Dec Country, percentage of net sales¹⁾ 2025 2024 2024 United States 45% 37% 40% India 7% 10% 6% United Kingdom 4% 4% 4% Japan 3% 3% 4% China 3% 4% 4% Q1 Isolated quarters, SEK million Q1 Q4 Q3 Q2 Q1 Networks 2,606 2,870 2,853 3,187 2,539 Cloud Software and Services 572 630 626 700 557 Total 3,178 3,500 3,479 3,887 3,096 2025 2024 Year to date, SEK million Jan-Mar Jan-Dec Jan-Sep Jan-Jun Jan-Mar Networks 2,606 11,449 8,579 5,726 2,539 Cloud Software and Services 572 2,513 1,883 1,257 557 Total 3,178 13,962 10,462 6,983 3,096 2025 2024 Isolated quarters, SEK million Q1 Q4 Q3 Q2 Q1 Financial income 619 587 724 742 681 Financial expenses -805 -984 -991 -1,029 -1,099 Net foreign exchange gains/losses 112 6 -234 -74 -53 Total -74 -391 -501 -361 -471 2025 2024 Year to date, SEK million Jan-Mar Jan-Dec Jan-Sep Jan-Jun Jan-Mar Financial income 619 2,734 2,147 1,423 681 Financial expenses -805 -4,103 -3,119 -2,128 -1,099 Net foreign exchange gains/losses 112 -355 -361 -127 -53 Total -74 -1,724 -1,333 -832 -471 2025 2024 ===== SIDA 29 ===== 29 Ericsson | First quarter report 2025. April 15, 2025. Accounting policies and Explanatory notes Note 4 – Provisions Provisions Isolated quarters, SEK million Q1 Q4 Q3 Q2 Q1 Opening balance 11,715 10,544 10,200 10,065 11,706 Additions 1,055 3,329 2,761 2,472 783 Utilization -3,009 -1,830 -1,872 -1,448 -2,140 Of which restructuring -1,201 -1,201 -1,286 -755 -932 Reversal of excess amounts -256 -651 -333 -411 -364 Reclassification, translation difference and other -412 323 -212 -478 80 Closing balance 9,093 11,715 10,544 10,200 10,065 Of which restructuring 2,720 3,872 3,897 3,757 2,953 2025 2024 Year to date, SEK million Jan-Mar Jan-Dec Jan-Sep Jan-Jun Jan-Mar Opening balance 11,715 11,706 11,706 11,706 11,706 Additions 1,055 9,345 6,016 3,255 783 Utilization -3,009 -7,290 -5,460 -3,588 -2,140 Of which restructuring -1,201 -4,174 -2,973 -1,687 -932 Reversal of excess amounts -256 -1,759 -1,108 -775 -364 Reclassification, translation difference and other -412 -287 -610 -398 80 Closing balance 9,093 11,715 10,544 10,200 10,065 Of which restructuring 2,720 3,872 3,897 3,757 2,953 2025 2024 ===== SIDA 30 ===== 30 Ericsson | First quarter report 2025. April 15, 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 1) Year to date movements of customer finance receivables are as follows: additions of SEK 2.5 billion, disposals and repayments of SEK 4.3 billion and revaluation loss of SEK 0.2 billion. 2) Total Cash and cash equivalent is SEK 44.6 (43.9 on Dec 31, 2024) billion, of which SEK 24.0 (24.3 on Dec 31, 2024) billion relating to Cash equivalents are presented in the table above. Exchange rates used in the consolidation SEK billion 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⁾ 2.4 - - 2.4 4.5 - - 4.5 Interest-bearing securities 29.4 28.4 1.0 - 31.7 30.4 1.3 - Cash equivalents ²⁾ 24.0 0.8 23.2 - 24.3 0.3 24.0 - Other financial assets 2.3 0.6 - 1.7 2.7 0.8 - 1.9 Other current assets 1.8 - 1.8 - 0.2 - 0.2 - Assets at fair value through OCI Trade receivables 41.4 - - 41.4 44.2 - - 44.2 Assets at amortized costs Interest-bearing securities 0.1 - - - 0.3 - - - Other financial assets 0.2 - - - 0.3 - - - Total financial assets 101.6 108.2 Financial liabilities at designated FVTPL Parent company borrowings -33.3 -18.6 -14.7 - -35.7 -19.7 -16.0 - Financial liabilities at FVTPL Other current liabilities -0.7 - -0.7 - -3.3 - -3.3 - Liabilities at amortized cost Trade payables -26.5 - - - -30.2 - - - Borrowings -2.2 - - - -2.3 - - - Total financial liabilities -62.7 -71.5 2025 2024 Mar 31 Dec 31 Fair value hierarchy level Fair value hierarchy level Jan-Dec 2025 2024 2024 SEK/EUR - closing rate 10.85 11.53 11.49 SEK/USD - closing rate 10.03 10.69 10.99 Jan-Mar ===== SIDA 31 ===== 31 Ericsson | First quarter report 2025. April 15, 2025. Accounting policies and Explanatory notes Note 6 – Cash flow Information on investments Investments in assets subject to depreciation, amortization, impairment and write-downs Note 7 – Contingent liabilities and Assets pledged as collateral Contingent liabilities and Assets pledged as collateral Isolated quarters, SEK million Q1 Q4 Q3 Q2 Q1 Additions  Property, plant and equipment 729 667 540 699 434  Capitalized development expenses 307 323 264 327 386  IPR, brands and other intangible assets 57 93 78 45 1 Total 1,093 1,083 882 1,071 821 Depreciation, amortization and impairment losses  Property, plant and equipment 1,029 1,117 924 1,161 941  Capitalized development expenses 444 409 410 349 312  Goodwill, IPR, brands and other intangible assets 721 666 429 15,945 793  Right-of-use assets 556 623 529 560 566 Total 2,750 2,815 2,292 18,015 2,612 2025 2024 Year to date, SEK million Jan-Mar Jan-Dec Jan-Sep Jan-Jun Jan-Mar Additions  Property, plant and equipment 729 2,340 1,673 1,133 434  Capitalized development expenses 307 1,300 977 713 386  IPR, brands and other intangible assets 57 217 124 46 1 Total 1,093 3,857 2,774 1,892 821 Depreciation, amortization and impairment losses  Property, plant and equipment 1,029 4,143 3,026 2,102 941  Capitalized development expenses 444 1,480 1,071 661 312  Goodwill, IPR, brands and other intangible assets 721 17,833 17,167 16,738 793  Right-of-use assets 556 2,278 1,655 1,126 566 Total 2,750 25,734 22,919 20,627 2,612 2025 2024 Mar 31 Dec 31 SEK million 2025 2024 Contingent liabilities 3, 067 3,559 Assets pledged as collateral 9,493 9,438 ===== SIDA 32 ===== 32 Ericsson | First quarter report 2025. April 15, 2025. Accounting policies and Explanatory notes Note 8 – Share information Number of shares and earnings per share 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 proposed dividend for 2024 of SEK 2.85 per share was approved by the AGM on March 25, 2025. The dividend will be paid in two installments. The first dividend payment of SEK 1.43 per share was made with the record date of March 27, 2025 with a payment date of April 1, 2025. The second dividend payment of SEK 1.42 per share will be made with the record date September 29, 2025, with an expected payment date of October 2, 2025. Note 9 – Employee information Number of employees 2) 2024 has been restated to reflect the changes in market area structure, see note 1 "Accounting policies and Other changes" for more information. Jan-Dec 2025 2024 2024 Number of shares, end of period (million) 3,348 3,344 3,348  Of which class A-shares (million) 262 262 262  Of which class B-shares (million) 3,086 3,082 3, 086 Number of treasury shares, end of period (million) 16 12 16 Number of shares outstanding, basic, end of period (million) 3,333 3,332 3,333 Numbers of shares outstanding, diluted, end of period (million) 3,340 3,336 3,339 Average number of treasury shares (million) 16 13 15 Average number of shares outstanding, basic (million) 3,333 3,331 3,332 Average number of shares outstanding, diluted (million) ¹⁾ 3,340 3, 335 3,339 Earnings per share, basic (SEK) ²⁾ 1.25 0. 77 0.01 Earnings per share, diluted (SEK) ¹⁾ 1.24 0. 77 0.01 Q1 End of period Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 Americas 15,857 16,034 16,554 16,791 17,051 Europe, Middle East and Africa ¹⁾ 40,677 41,387 41,993 43,017 42, 989 South East Asia, Oceania and India 25,991 26,389 26,327 26,558 27,016 North East Asia 10,341 10,426 11,110 11,619 12,084 Total 92,866 94,236 95,984 97,985 99,140 ¹⁾ Of which in Sweden 13,222 13,420 13,633 14,109 13,849 2025 2024 ²⁾ ===== SIDA 33 ===== 33 Ericsson | First quarter report 2025. April 15, 2025. Alternative performance measures 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 2024. From Q1 2025, the definition of Return on capital employed (ROCE) and Capital turnover (CTO) have been updated and is based on a rolling average rather than an average of the beginning and the end of the period. Prior periods have been updated accordingly. Operating working capital has been added as an APM. From Q1 2025, the definitions of Inventory turnover days (ITO), Days sales outstanding (DSO), Days payables outstanding (DPO) and Operating working capital days have been updated and can be found in the end of this report. Prior periods have been updated accordingly. The Company believes the updated definitions better reflect the underlying results of the Company's operations over time. ===== SIDA 34 ===== 34 Ericsson | First quarter report 2025. April 15, 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. Isolated quarters, year over year change Q1 Q4 Q3 Q2 Q1 Reported net sales 55,025 72,913 61,794 59,848 53,325  Acquired business - - - - -  Net FX impact -1,817 683 1,832 22 740 Comparable net sales, excluding FX impact 53,208 73,596 63,626 59,870 54,065 Comparable quarter net sales adj. for acq/div business 53,325 71,881 64,473 64,444 62,553 Organic sales growth (%) 0% 2% -1% -7% -14% 2025 2024 Year to date, year over year change Jan-Mar Jan-Dec Jan-Sep Jan-Jun Jan-Mar Reported net sales 55,025 247,880 174,967 113,173 53,325  Acquired business - - - - -  Net FX impact -1,817 3,277 2,594 762 740 Comparable net sales, excluding FX impact 53,208 251,157 177,561 113,935 54,065 Comparable quarter net sales adj. for acq/div business 53,325 263,351 191,470 126,997 62,553 Organic sales growth (%) 0% -5% -7% -10% -14% 2025 2024 ===== SIDA 35 ===== 35 Ericsson | First quarter report 2025. April 15, 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. Isolated quarters, SEK million Q1 Q4 Q3 Q2 Q1 Gross income 26,537 32,707 28,185 25,815 22,658 Net sales 55,025 72,913 61,794 59,848 53,325 Gross margin (%) 48.2% 44.9% 45.6% 43.1% 42.5% Gross income 26,537 32,707 28,185 25,815 22,658 Restructuring charges included in cost of sales 158 1,034 424 466 122 Adjusted gross income 26,695 33,741 28,609 26,281 22,780 Net sales 55,025 72,913 61,794 59,848 53,325 Adjusted gross margin (%) 48.5% 46.3% 46.3% 43.9% 42.7% Operating expenses -20,621 -24,391 -22,442 -38,084 -20,519 Restructuring charges included in R&D expenses 20 358 966 805 -10 Restructuring charges included in selling and administrative expenses 103 234 163 357 93 Operating expenses excluding restructuring charges -20,498 -23,799 -21,313 -36,922 -20,436 EBIT (loss) 5,931 7,958 5,774 -13,519 4,100 Net sales 55,025 72,913 61,794 59,848 53,325 EBIT margin (%) 10.8% 10.9% 9.3% -22.6% 7.7% EBIT (loss) 5,931 7,958 5,774 -13,519 4,100 Total restructuring charges 281 1,626 1,553 1,628 205 Adjusted EBIT (loss) 6,212 9,584 7,327 -11,891 4,305 Net sales 55,025 72,913 61,794 59,848 53,325 Adjusted EBIT margin (%) 11.3% 13.1% 11.9% -19.9% 8.1% Adjusted EBIT (loss) 6,212 9,584 7,327 -11,891 4,305 Impairment of goodwill and intangible assets - 213 - 15,120 - Adjusted EBIT excluding impairments of goodwill and intangible assets 6,212 9,797 7,327 3,229 4,305 Net sales 55,025 72,913 61,794 59,848 53,325 Adjusted EBIT margin excluding impairments of goodwill and intangible assets (%) 11.3% 13.4% 11.9% 5.4% 8.1% 2025 2024 Year to date, SEK million Jan-Mar Jan-Dec Jan-Sep Jan-Jun Jan-Mar Gross income 26,537 109,365 76,658 48,473 22,658 Net sales 55,025 247,880 174,967 113,173 53,325 Gross margin (%) 48.2% 44.1% 43.8% 42.8% 42.5% Gross income 26,537 109,365 76,658 48,473 22,658 Restructuring charges included in cost of sales 158 2,046 1,012 588 122 Adjusted gross income 26,695 111,411 77,670 49,061 22,780 Net sales 55,025 247,880 174,967 113,173 53,325 Adjusted gross margin (%) 48.5% 44.9% 44.4% 43.4% 42.7% Operating expenses -20,621 -105,436 -81,045 -58,603 -20,519 Restructuring charges included in R&D expenses 20 2,119 1,761 795 -10 Restructuring charges included in selling and administrative expenses 103 847 613 450 93 Operating expenses excluding restructuring charges -20,498 -102,470 -78,671 -57,358 -20,436 EBIT (loss) 5,931 4,313 -3,645 -9,419 4,100 Net sales 55,025 247,880 174,967 113,173 53,325 EBIT margin (%) 10.8% 1.7% -2.1% -8.3% 7.7% EBIT (loss) 5,931 4,313 -3,645 -9,419 4,100 Total restructuring charges 281 5,012 3,386 1,833 205 Adjusted EBIT (loss) 6,212 9,325 -259 -7,586 4,305 Net sales 55,025 247,880 174,967 113,173 53,325 Adjusted EBIT margin (%) 11.3% 3.8% -0.1% -6.7% 8.1% Adjusted EBIT (loss) 6,212 9,325 -259 -7,586 4,305 Impairment of goodwill and intangible assets - 15,333 15,120 15,120 - Adjusted EBIT excluding impairments of goodwill and intangible assets 6,212 24,658 14,861 7,534 4,305 Net sales 55,025 247,880 174,967 113,173 53,325 Adjusted EBIT margin excluding impairments of goodwill and intangible assets (%) 11.3% 9.9% 8.5% 6.7% 8.1% 2025 2024 ===== SIDA 36 ===== 36 Ericsson | First quarter report 2025. April 15, 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. Additionally, Ericsson provides forward-looking targets for adjusted EBITA margin and Free cash flow before M&A as a percentage of net sales, 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 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. Isolated quarters, SEK million Q1 Q4 Q3 Q2 Q1 Net income (loss) 4,217 4,879 3,881 -10,999 2,613 Income tax 1,640 2,688 1,392 -2,881 1,016 Financial income and expenses, net 74 391 501 361 471 Amortizations and write-downs of acquired intangibles 721 665 429 15,945 793  Of which segment Enterprise 389 549 378 15,916 762 EBITA 6,652 8,623 6,203 2,426 4,893 Net sales 55,025 72,913 61,794 59,848 53,325 EBITA margin (%) 12.1% 11.8% 10.0% 4.1% 9.2% Restructuring charges 281 1,626 1,553 1,628 205 Adjusted EBITA 6,933 10,249 7,756 4,054 5,098 Adjusted EBITA margin (%) 12.6% 14.1% 12.6% 6.8% 9.6% 2025 2024 Year to date, SEK million Jan-Mar Jan-Dec Jan-Sep Jan-Jun Jan-Mar Net income (loss) 4,217 374 -4,505 -8,386 2,613 Income tax 1,640 2,215 -473 -1,865 1,016 Financial income and expenses, net 74 1,724 1,333 832 471 Amortizations and write-downs of acquired intangibles 721 17,832 17,167 16,738 793  Of which segment Enterprise 389 17,605 17,056 16,678 762 EBITA 6,652 22,145 13,522 7,319 4,893 Net sales 55,025 247,880 174,967 113,173 53,325 EBITA margin (%) 12.1% 8.9% 7.7% 6.5% 9.2% Restructuring charges 281 5,012 3,386 1,833 205 Adjusted EBITA 6,933 27,157 16,908 9,152 5,098 Adjusted EBITA margin (%) 12.6% 11.0% 9.7% 8.1% 9.6% 2025 2024 Rolling four quarters, SEK million Q1 Q4 Q3 Q2 Q1 Net sales 249,580 247,880 246,848 249,527 254,123 EBITA 23,904 22,145 20,216 17,841 15,957 Restructuring charges 5,088 5,012 4,906 4,241 5,746 Adjusted EBITA 28,992 27,157 25,122 22,082 21,703 Adjusted EBITA margin (%) 11.6% 11.0% 10.2% 8.8% 8.5% 2025 2024 ===== SIDA 37 ===== 37 Ericsson | First quarter report 2025. April 15, 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). 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). Capital turnover Rolling four quarters of net sales divided by five-point average for capital employed. The definition is updated from Q1 2025. Prior periods are updated accordingly. Refer to the clarification provided at the beginning of the APM section. SEK million Q1 Q4 Q3 Q2 Q1 Cash and cash equivalents 44,590 43,885 37,323 28,736 31,848 + Interest-bearing securities, current 5,147 12,546 10,063 13,838 8,948 + Interest-bearing securities, non-current 24,436 19,440 14,806 11,146 11,177 Gross cash, end of period 74,173 75,871 62,192 53,720 51,973 - Borrowings, current 5,597 6,137 3,134 8,067 8,491 - Borrowings, non-current 29,929 31,904 33,524 32,520 32,675 Net cash, end of period 38,647 37,830 25,534 13,133 10,807 2025 2024 SEK million Q1 Q4 Q3 Q2 Q1 Total assets 277,978 292,374 272,450 278,486 299,523 Less: Non-interest-bearing provisions and liabilities  Provisions, non-current 2,541 3,511 3,036 2, 642 3,952  Deferred tax liabilities 1,365 1,295 1,255 1,295 3,999  Other non-current liabilities 888 996 889 865 839  Provisions, current 6,552 8,204 7,508 7,558 6,113  Contract liabilities 46,757 41,229 39,540 40,704 42,538  Trade payables 26,450 30,173 25,888 26,731 25,305  Current tax liabilities 2,664 3,322 3,821 3,710 3,810  Other current liabilities 41,655 40,677 36,903 38,485 35,786 Capital employed 149,106 162,967 153,610 156,496 177,181 2025 2024 SEK million Q1 Q4 Q3 Q2 Q1 Net sales, rolling four quarters 249,580 247,880 246,848 249,527 254,123 Average capital employed, rolling five quarters Capital employed at end of period -4 177,181 177,965 170,926 197,676 195,403 Capital employed at end of period -3 156,496 177,181 177,965 170,926 197,676 Capital employed at end of period -2 153,610 156,496 177,181 177,965 170,926 Capital employed at end of period -1 162,967 153,610 156,496 177,181 177,965  Capital employed at end of period 149,106 162,967 153,610 156,496 177,181  Average capital employed, rolling five quarters 159,872 165,644 167,236 176,049 183,830 Capital turnover (times) 1.6 1.5 1.5 1.4 1.4 2025 2024 ===== SIDA 38 ===== 38 Ericsson | First quarter report 2025. April 15, 2025. Alternative performance measures Return on capital employed Rolling four quarters of EBIT divided by five-point average for capital employed. The definition is updated from Q1 2025. Prior periods are updated accordingly. Refer to the clarification provided at the beginning of the APM section. Equity ratio Equity expressed as a percentage of total assets. 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. SEK million Q1 Q4 Q3 Q2 Q1 EBIT (loss), rolling four quarters 6,144 4,313 2,203 -32,479 -19,272 Average capital employed, rolling five quarters Capital employed at end of period -4 177,181 177,965 170,926 197,676 195,403 Capital employed at end of period -3 156,496 177,181 177,965 170,926 197,676 Capital employed at end of period -2 153,610 156,496 177,181 177,965 170,926 Capital employed at end of period -1 162,967 153,610 156,496 177,181 177,965 Capital employed at end of period 149,106 162,967 153,610 156,496 177,181  Average capital employed, rolling five quarters 159,872 165,644 167,236 176,049 183,830 Return on capital employed (%) 3.8% 2.6% 1.3% -18.4% -10.5% 20242025 SEK million Q1 Q4 Q3 Q2 Q1 Total equity 84,858 92,983 85,355 82,467 107,639 Total assets 277,978 292,374 272,450 278,486 299,523 Equity ratio (%) 30.5% 31.8% 31.3% 29.6% 35.9% 2025 2024 Isolated quarters, SEK million Q1 Q4 Q3 Q2 Q1 Net income (loss) attributable to owners of the Parent Company 4,149 4,779 3,814 -11,132 2,559 Annualized 16,596 19,116 15,256 -44,528 10,236 Average stockholders' equity  Stockholders' equity, beginning of period 94,284 86,630 83,840 109, 137 98,673  Stockholders' equity, end of period 86,039 94,284 86,630 83, 840 109,137  Average stockholders' equity 90,162 90,457 85,235 96,489 103,905 Return on equity (%) 18.4% 21.1% 17.9% -46.1% 9.9% 2025 2024 Year to date, SEK million Jan-Mar Jan-Dec Jan-Sep Jan-Jun Jan-Mar Net income (loss) attributable to owners of the Parent Company 4,149 20 -4,759 -8,573 2,559 Annualized 16,596 20 -6,345 -17,146 10,236 Average stockholders' equity  Stockholders' equity, beginning of period 94,284 98,673 98,673 98, 673 98,673  Stockholders' equity, end of period 86,039 94,284 86,630 83, 840 109,137  Average stockholders' equity 90,162 96,479 92,652 91,257 103,905 Return on equity (%) 18.4% 0.0% -6.8% -18.8% 9.9% 2025 2024 ===== SIDA 39 ===== 39 Ericsson | First quarter report 2025. April 15, 2025. Alternative performance measures Operating working capital Inventories, contract assets, trade receivables, customer finance (current and non-current), advances to suppliers and prepaid expenses less contract liabilities and trade payables. Operating working capital is added from Q1 2025. Refer to the clarification provided at the beginning of the APM section. 1) Part of Other current receivables in the consolidated balance sheet. 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. 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, which are not to be part of the definition of Free cash flow. SEK million Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 Inventories 27,649 27,125 29,004 30,897 34,564 Contract assets 5,735 6,924 7,568 6,851 6,715 Trade receivables 41,428 44,151 38,018 43,578 46,246 Customer finance, current 2,396 4,332 3,843 4,590 3,717 Customer finance, non-current 27 190 221 843 1,406 Advance payments to suppliers ¹⁾ 46 47 108 146 167 Prepaid expenses ¹⁾ 3,749 2,659 2,737 3,244 3,501 Less: Contract liabilities 46,757 41,229 39,540 40,704 42,538 Less: Trade payables 26,450 30,173 25,888 26,731 25,305 Operating working capital 7,823 14,026 16,071 22,714 28,473 2025 2024 Isolated quarters, SEK million Q1 Q4 Q3 Q2 Q1 Cash flow from operating activities 4,358 17,513 14,397 9,276 5,075 Net capital expenditures and other investments (excl. M&A)  Investments in property, plant and equipment -729 -667 -540 -699 -434  Sales of property, plant and equipment 39 14 36 42 24  Product development -307 -323 -264 -327 -386  Other investments ¹⁾ -64 -87 -78 -39 -7  Repayment of lease liabilities -593 -626 -607 -658 -601 Free cash flow before M&A 2,704 15,824 12,944 7,595 3,671  Acquisitions/divestments of subs and other operations, net -4 -95 -62 - 48 -106 Free cash flow after M&A 2,700 15,729 12,882 7,547 3,565 Net sales 55,025 72,913 61,794 59,848 53,325 Free cash flow before M&A (% of net sales) 4.9% 21.7% 20.9% 12.7% 6.9% 2025 2024 Year to date, SEK million Jan-Mar Jan-Dec Jan-Sep Jan-Jun Jan-Mar Cash flow from operating activities 4,358 46,261 28,748 14,351 5,075 Net capital expenditures and other investments (excl. M&A)  Investments in property, plant and equipment -729 -2,340 -1,673 -1,133 -434  Sales of property, plant and equipment 39 116 102 66 24  Product development -307 -1,300 -977 -713 -386  Other investments ¹⁾ -64 -211 -124 -46 -7  Repayment of lease liabilities -593 -2,492 -1,866 -1,259 -601 Free cash flow before M&A 2,704 40,034 24,210 11,266 3,671  Acquisitions/divestments of subs and other operations, net -4 -311 -216 - 154 -106 Free cash flow after M&A 2,700 39,723 23,994 11,112 3,565 Net sales 55,025 247,880 174,967 113,173 53,325 Free cash flow before M&A (% of net sales) 4.9% 16.2% 13.8% 10.0% 6.9% 2025 2024 ===== SIDA 40 ===== 40 Ericsson | First quarter report 2025. April 15, 2025. Alternative performance measures Sales growth by segment adjusted for comparable units and currency Sales growth by market area adjusted for comparable units and currency 1) 2024 has been restated to reflect the changes in market area structure, see note 1 "Accounting policies and Other changes" for more information. Rolling four quarters of net sales by segment Isolated quarter, year over year change, percent Q1 Q4 Q3 Q2 Q1 Networks 3% 5% -1% -11% -19% Cloud Software and Services -3% 0% - 1% 0% -2% Enterprise -7% -7% -3% 0% 1% Other -23% -10% -26% -5% -14% Total 0% 2% -1% -7% -14% 2025 2024 Year to date, year over year change, percent Jan-Mar Jan-Dec Jan-Sep Jan-Jun Jan-Mar Networks 3% -6% -10% -15% -19% Cloud Software and Services -3% -1% - 1% -1% -2% Enterprise -7% -2% -1% 1% 1% Other -23% -15% -16% -10% -14% Total 0% -5% -7% -10% -14% 2025 2024 Isolated quarter, year over year change, percent Q1 Q4 Q3 Q2 Q1 Americas 20% 40% 42% 10% -16% Europe, Middle East and Africa -7% -4% -6% -4% -1% South East Asia, Oceania and India -17% -28% -43% -44% -37% North East Asia -8% -22% -29% -3% -16% Other -6% 3% 5% 7% 8% Total 0% 2% -1% -7% -14% 2025 2024 ¹⁾ Year to date, year over year change, percent Jan-Mar Jan-Dec Jan-Sep Jan-Jun Jan-Mar Americas 20% 18% 10% -4% -16% Europe, Middle East and Africa -7% -4% -4% -3% -1% South East Asia, Oceania and India -17% -38% -41% -41% -37% North East Asia -8% -19% -16% -9% -16% Other -6% 6% 6% 7% 8% Total 0% -5% -7% -10% -14% 2025 2024 ¹⁾ Rolling four quarters, SEK million Q1 Q4 Q3 Q2 Q1 Networks 160,135 158,207 156,408 157,929 162,690 Cloud Software and Services 62,565 62,635 62,736 63,347 63,275 Enterprise 24,826 24,863 25,471 25,825 25,720 Other 2,054 2,175 2,233 2,426 2,438 Total 249,580 247,880 246,848 249,527 254,123 2025 2024 ===== SIDA 41 ===== 41 Ericsson | First quarter report 2025. April 15, 2025. Alternative performance measures Gross margin by segment by quarter EBIT margin by segment by quarter Isolated quarters, as percentage of net sales Q1 Q4 Q3 Q2 Q1 Networks 50.8% 47.7% 48.3% 45.5% 44.0% Cloud Software and Services 39.1% 37.2% 37.0% 35.6% 37.1% Enterprise 56.3% 54.3% 52.3% 51.0% 48.0% Other 3.8% -29.5% 1.8% -8.1% 18.2% Total 48.2% 44.9% 45.6% 43.1% 42.5% 2025 2024 Year to date, as percentage of net sales Jan-Mar Jan-Dec Jan-Sep Jan-Jun Jan-Mar Networks 50.8% 46.6% 46.1% 44.8% 44.0% Cloud Software and Services 39.1% 36.8% 36.5% 36.3% 37.1% Enterprise 56.3% 51.4% 50.5% 49.6% 48.0% Other 3.8% -4.2% 4.7% 6.1% 18.2% Total 48.2% 44.1% 43.8% 42.8% 42.5% 2025 2024 Isolated quarters, as percentage of net sales Q1 Q4 Q3 Q2 Q1 Networks 19.8% 19.8% 18.7% 12.6% 12.3% Cloud Software and Services 0.5% 5.6% -3.0% -4.8% -2.8% Enterprise -17.1% -30.8% -19.0% -268.7% -26.5% Other -35.0% -93.5% -14.6% -23.2% 317.5% Total 10.8% 10.9% 9.3% -22.6% 7.7% 2025 2024 Year to date, as percentage of net sales Jan-Mar Jan-Dec Jan-Sep Jan-Jun Jan-Mar Networks 19.8% 16.2% 14.7% 12.5% 12.3% Cloud Software and Services 0.5% -0.7% -3.6% -3.9% -2.8% Enterprise -17.1% -88.8% -107.6% -152.6% -26.5% Other -35.0% 53.6% 105.7% 161.1% 317.5% Total 10.8% 1.7% -2.1% -8.3% 7.7% 2025 2024 ===== SIDA 42 ===== 42 Ericsson | First quarter report 2025. April 15, 2025. Alternative performance measures EBITA and EBITA margin by segment by quarter Isolated quarters, SEK million Q1 Q4 Q3 Q2 Q1 Networks 7,367 9,375 7,536 4,771 4,179 Cloud Software and Services 76 1,107 -436 -721 -355 Enterprise -625 -1,327 -823 -1,508 -820 Other -166 -532 -74 -116 1,889 Total 6,652 8,623 6,203 2,426 4,893 2025 2024 Isolated quarters, as percentage of net sales Q1 Q4 Q3 Q2 Q1 Networks 20.7% 20.0% 18.8% 12.7% 12.4% Cloud Software and Services 0.6% 5.7% -2.9% -4.7% -2.7% Enterprise -10.5% -21.8% -13.0% -23.3% -13.7% Other -35.0% -93.5% -14.6% -23.0% 317.5% Total 12.1% 11.8% 10.0% 4.1% 9.2% 2025 2024 Year to date, SEK million Jan-Mar Jan-Dec Jan-Sep Jan-Jun Jan-Mar Networks 7,367 25,861 16,486 8,950 4,179 Cloud Software and Services 76 -405 -1,512 -1,076 -355 Enterprise -625 -4,478 -3,151 -2,328 -820 Other -166 1,167 1,699 1,773 1,889 Total 6,652 22,145 13,522 7,319 4,893 2025 2024 Year to date, as percentage of net sales Jan-Mar Jan-Dec Jan-Sep Jan-Jun Jan-Mar Networks 20.7% 16.3% 14.8% 12.5% 12.4% Cloud Software and Services 0.6% -0.6% -3.5% -3.8% -2.7% Enterprise -10.5% -18.0% -16.8% -18.7% -13.7% Other -35.0% 53.7% 105.8% 161.2% 317.5% Total 12.1% 8.9% 7.7% 6.5% 9.2% 2025 2024 ===== SIDA 43 ===== 43 Ericsson | First quarter report 2025. April 15, 2025. Alternative performance measures Restructuring charges by function Restructuring charges by segment Isolated quarters, SEK million Q1 Q4 Q3 Q2 Q1 Cost of sales -158 -1,034 -424 -466 -122 Research and development expenses -20 -358 -966 -805 10 Selling and administrative expenses -103 -234 -163 -357 -93 Total -281 -1,626 -1,553 -1,628 -205 2025 2024 Year to date, SEK million Jan-Mar Jan-Dec Jan-Sep Jan-Jun Jan-Mar Cost of sales -158 -2,046 -1,012 -588 -122 Research and development expenses -20 -2,119 -1,761 -795 10 Selling and administrative expenses -103 -847 -613 -450 -93 Total -281 -5,012 -3,386 -1,833 -205 2025 2024 Isolated quarters, SEK million Q1 Q4 Q3 Q2 Q1 Networks -108 -738 -585 -481 -95  of which cost of sales -55 -645 -163 -214 -68  of which operating expenses -53 -93 -422 -267 -27 Cloud Software and Services -74 -695 -863 -816 -60  of which cost of sales -102 -348 -243 -246 -49  of which operating expenses 28 -347 -620 -570 -11 Enterprise -97 -150 -38 -285 -38  of which cost of sales 1 -2 -1 -3 -5  of which operating expenses -98 -148 -37 -282 -33 Other -2 -43 -67 -46 -12  of which cost of sales -2 -39 -17 -3 0  of which operating expenses 0 -4 -50 -43 -12 Total -281 -1,626 -1,553 -1,628 -205 2025 2024 Year to date, SEK million Jan-Mar Jan-Dec Jan-Sep Jan-Jun Jan-Mar Networks -108 -1,899 -1,161 -576 -95  of which cost of sales -55 -1,090 -445 -282 -68  of which operating expenses -53 -809 -716 -294 -27 Cloud Software and Services -74 -2,434 -1,739 -876 -60  of which cost of sales -102 -886 -538 -295 -49  of which operating expenses 28 -1,548 -1,201 -581 -11 Enterprise -97 -511 -361 -323 -38  of which cost of sales 1 -11 -9 -8 -5  of which operating expenses -98 -500 -352 -315 -33 Other -2 -168 -125 -58 -12  of which cost of sales -2 -59 -20 -3 0  of which operating expenses 0 -109 -105 -55 -12 Total -281 -5,012 -3,386 -1,833 -205 2025 2024 ===== SIDA 44 ===== 44 Ericsson | First quarter report 2025. April 15, 2025. Alternative performance measures Adjusted gross income and gross margin by segment Isolated quarters, SEK million Q1 Q4 Q3 Q2 Q1 Networks 18,167 22,971 19,495 17,353 14,919 Cloud Software and Services 5,171 7,591 5,780 5,653 4,883 Enterprise 3,337 3,308 3,308 3,313 2,870 Other 20 -129 26 -38 108 Total 26,695 33,741 28,609 26,281 22,780 2025 2024 Isolated quarters, as percentage of net sales Q1 Q4 Q3 Q2 Q1 Networks 51.0% 49.1% 48.7% 46.1% 44.3% Cloud Software and Services 39.9% 39.0% 38.7% 37.2% 37.4% Enterprise 56.2% 54.3% 52.4% 51.1% 48.1% Other 4.2% -22.7% 5.1% -7.5% 18.2% Total 48.5% 46.3% 46.3% 43.9% 42.7% 2025 2024 Year to date, SEK million Jan-Mar Jan-Dec Jan-Sep Jan-Jun Jan-Mar Networks 18,167 74,738 51,767 32,272 14,919 Cloud Software and Services 5,171 23,907 16,316 10,536 4,883 Enterprise 3,337 12,799 9,491 6,183 2,870 Other 20 -33 96 70 108 Total 26,695 111,411 77,670 49,061 22,780 2025 2024 Year to date, as percentage of net sales Jan-Mar Jan-Dec Jan-Sep Jan-Jun Jan-Mar Networks 51.0% 47.2% 46.5% 45.2% 44.3% Cloud Software and Services 39.9% 38.2% 37.8% 37.3% 37.4% Enterprise 56.2% 51.5% 50.6% 49.6% 48.1% Other 4.2% -1.5% 6.0% 6.4% 18.2% Total 48.5% 44.9% 44.4% 43.4% 42.7% 2025 2024 ===== SIDA 45 ===== 45 Ericsson | First quarter report 2025. April 15, 2025. Alternative performance measures Adjusted EBIT (loss) and EBIT margin by segment Rolling four quarters of adjusted EBITA margin by segment (%) Isolated quarters, SEK million Q1 Q4 Q3 Q2 Q1 Networks 7,148 10,005 8,077 5,231 4,251 Cloud Software and Services 145 1,794 420 88 -303 Enterprise -917 -1,726 -1,163 -17,139 -1,544 Other -164 -489 -7 -71 1,901 Total 6,212 9,584 7,327 -11,891 4,305 2025 2024 Isolated quarters, as percentage of net sales Q1 Q4 Q3 Q2 Q1 Networks 20.1% 21.4% 20.2% 13.9% 12.6% Cloud Software and Services 1.1% 9.2% 2.8% 0.6% -2.3% Enterprise -15.5% -28.3% -18.4% -264.3% -25.9% Other -34.6% -85.9% -1.4% -14.1% 319.5% Total 11.3% 13.1% 11.9% -19.9% 8.1% 2025 2024 Year to date, SEK million Jan-Mar Jan-Dec Jan-Sep Jan-Jun Jan-Mar Networks 7,148 27,564 17,559 9,482 4,251 Cloud Software and Services 145 1,999 205 -215 -303 Enterprise -917 -21,572 -19,846 -18,683 -1,544 Other -164 1,334 1,823 1,830 1,901 Total 6,212 9,325 -259 -7,586 4,305 2025 2024 Year to date, as percentage of net sales Jan-Mar Jan-Dec Jan-Sep Jan-Jun Jan-Mar Networks 20.1% 17.4% 15.8% 13.3% 12.6% Cloud Software and Services 1.1% 3.2% 0.5% -0.8% -2.3% Enterprise -15.5% -86.8% -105.7% -150.0% -25.9% Other -34.6% 61.3% 113.5% 166.4% 319.5% Total 11.3% 3.8% -0.1% -6.7% 8.1% 2025 2024 Rolling four quarters, as percentage of net sales Q1 Q4 Q3 Q2 Q1 Networks 19.3% 17.5% 16.0% 14.0% 13.4% Cloud Software and Services 4.0% 3.2% 3.6% 3. 6% 3.0% Enterprise -15.0% -16.0% -14.1% -13.2% -11.7% Other -35.5% 61.4% 62.0% 43.6% 43.9% Total 11.6% 11.0% 10.2% 8.8% 8.5% 2025 2024 ===== SIDA 46 ===== 46 Ericsson | First quarter report 2025. April 15, 2025. Alternative performance measures Adjusted EBITA and EBITA margin by segment Operating working capital days Inventory turnover days (ITO): Five quarter average inventory divided by four quarter rolling absolute value of cost of sales excluding restructuring charges multiplied by 365, expressed as number of days. Days sales outstanding (DSO): Five quarter average of contract assets, trade receivables and customer finance (current and non-current) less contract liabilities divided by four quarter rolling net sales multiplied by 365, expressed as number of days. Days payables outstanding (DPO): Five quarter average of advances to suppliers and prepaid expenses less trade payables divided by four quarter rolling absolute value of cost of sales excluding restructuring charges multiplied by 365, expressed as number of days. Operating working capital days: ITO plus DSO less DPO The definition is updated from Q1 2025. Prior periods are updated accordingly. Refer to the clarification provided at the beginning of the APM section. Isolated quarters, SEK million Q1 Q4 Q3 Q2 Q1 Networks 7,475 10,113 8,121 5,252 4,274 Cloud Software and Services 150 1,802 427 95 -295 Enterprise -528 -1,177 -785 -1,223 -782 Other -164 -489 -7 -70 1,901 Total 6,933 10,249 7,756 4,054 5,098 2025 2024 Isolated quarters, as percentage of net sales Q1 Q4 Q3 Q2 Q1 Networks 21.0% 21.6% 20.3% 13.9% 12.7% Cloud Software and Services 1.2% 9.3% 2.9% 0.6% -2.3% Enterprise -8.9% -19.3% -12.4% -18.9% -13.1% Other -34.6% -85.9% -1.4% -13.9% 319.5% Total 12.6% 14.1% 12.6% 6.8% 9.6% 2025 2024 Year to date, SEK million Jan-Mar Jan-Dec Jan-Sep Jan-Jun Jan-Mar Networks 7,475 27,760 17,647 9,526 4,274 Cloud Software and Services 150 2,029 227 -200 -295 Enterprise -528 -3,967 -2,790 -2,005 -782 Other -164 1,335 1,824 1,831 1,901 Total 6,933 27,157 16,908 9,152 5,098 2025 2024 Year to date, as percentage of net sales Jan-Mar Jan-Dec Jan-Sep Jan-Jun Jan-Mar Networks 21.0% 17.5% 15.8% 13.3% 12.7% Cloud Software and Services 1.2% 3.2% 0.5% -0.7% -2.3% Enterprise -8.9% -16.0% -14.9% -16.1% -13.1% Other -34.6% 61.4% 113.6% 166.5% 319.5% Total 12.6% 11.0% 9.7% 8.1% 9.6% 2025 2024 Q1 Q4 Q3 Q2 Q1 Inventory turnover days (ITO) 81 84 92 97 100 Days sales outstanding (DSO) 17 23 26 29 30 Less: Days payables outstanding (DPO) 64 64 63 64 65 Operating working capital days 34 43 55 62 65 2025 2024