Kvartalsrapport Q3 2024

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===== SIDA 1 =====

1 Ericsson  |  Third quarter report 2024. October 15, 2024.   
Third quarter report 2024 Strategic highlights – solid progress on both strategic and operational priorities • Increased momentum in programmable networks, mobile network contract wins in multiple markets. • Global supply of Network APIs secured with JV agreed between leading mobile network operators and Ericsson. • Further 5G patent licensing agreement signed in Q3, IPR revenues expected to reach at least SEK 13 b. in 2024. Financial highlights – strong growth in North America and continued gross margin expansion  • Sales declined by -1%* YoY, with strong growth in market area North America of 55%* offset by declines in most other market areas. Reported sales were SEK 61.8 (64.5) b. • Adjusted1 gross income increased to SEK 28.6 (25.3) b. driven by a strong expansion in Networks adjusted1 gross margin to 48.7% (39.9%). Reported gross income was SEK 28.2 (24.7) b. • Adjusted1 gross margin was 46.3% (39.2%) mainly due to market mix, commercial discipline, and cost actions. A customer settlement and increased IPR revenues also contributed. Reported gross margin was 45.6% (38.4%). • Adjusted1 EBITA was SEK 7.8 (4.7) b. with a 12.6% (7.3%) margin, benefiting from higher gross income and cost reduction actions, partly offset by targeted investments in R&D. EBITA was SEK 6.2 (3.8) b.  • Net income was SEK 3.9 (-30.5) b. EPS diluted was SEK 1.14 (-9.21). • Free cash flow before M&A was SEK 12.9 (-0.5) b. benefiting from strong inventory management and market mix. Börje Ekholm, President and CEO, said: “Q3 marks a period of laser-focus on execution of our strategic plan. We see increasing customer momentum around programmable networks that deliver differentiated performance, and expect further traction, supported by the JV we have announced with 12 of the world’s largest telecom operators. The JV will aggregate network APIs, accelerating commercialization and generating new opportunities for network monetization. We see signs that the overall market is stabilizing with North America, as an early adopter market, returning to growth. While the market development is ultimately in the hands of our customers, we are working to deliver operational excellence regardless of market conditions. Our Q3 results demonstrate our progress, with strong gross margin expansion and free cash flow, benefiting from our commercial discipline and operational efficiency actions.  We expect our Networks sales to stabilize year-on-year during Q4, driven by continued good growth in North America. However, we anticipate further near-term sales pressure in Enterprise as we focus on profitable segments. We launched a new private 5G enterprise product portfolio in Q3 to support performance improvement, which remains a key priority.” 
 * Sales adjusted for the impact of acquisitions and divestments and effects of foreign currency fluctuations. 1 Adjusted metrics exclude restructuring charges.  2 Non-IFRS financial measures are reconciled at the end of this report to the most directly reconcilable line items in the financial statement. 3 Excluding the non-cash impairment recorded in the second quarter 2024, relating to the impairment of intangible assets mainly attributed to the Vonage acquisition. 
SEK b.
Q3
2024
Q3
2023
YoY 
change
Q2
2024
QoQ 
change
Jan-Sep
2024
Jan-Sep
2023
YoY 
change
Net sales 61.8 64.5 -4% 59.8 3% 175.0 191.5 -9% 
Organic	sales	growth	² - - -1% - - - - -7%
Gross margin ² 45.6%38.4% - 43.1% - 43.8%38.1% -
EBIT (loss) 5.8 -28.9 - -13.5 - -3.6 -26.2 -
EBIT margin ² 9.3%-44.8% - -22.6% - -2.1%-13.7% -
EBI TA ² 6.2 3.8 62% 2.4 156% 13.5 8.2 65%
EBITA margin ² 10.0% 5.9% - 4.1% - 7.7% 4.3% -
Net income (loss) 3.9 -30.5 - -11.0 - -4.5 -29.5 -
EPS diluted, SEK 1.14 -9.21 - -3.34 - -1.43 -8.96 -
Free cash flow before M&A ² 12.9 -0.5 - 7.6 70% 24.2 -13.5 -
Net cash, end of period ² 25.5 1.6 - 13.1 94% 25.5 1.6 -
Adjusted financial measures ²
Adjusted gross margin 46.3%39.2% - 43.9% - 44.4%39.1% -
Adjusted EBIT (loss) 7.3 -28.0 - -11.9 - -0.3 -21.2 -
Adjusted EBIT margin 11.9%-43.5% - -19.9% - -0.1%-11.1% -
Adjusted EBIT excluding impairments ³ 7.3 3.9 88% 3.2 127% 14.9 10.7 38%
Adjusted EBIT margin excluding impairments ³ 11.9% 6.0% - 5.4% - 8.5% 5.6% -
Adjusted EBITA 7.8 4.7 64% 4.1 91% 16.9 13.2 28%
Adjusted EBITA margin 12.6% 7.3% - 6.8% - 9.7% 6.9% -

===== SIDA 2 =====

2 Ericsson  |  Third quarter report 2024. October 15, 2024. 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 growth. These numbers present performance on a comparable basis to improve the comparability of results between periods. Organic sales growth figures are non-IFRS measures.  ‘Adjusted’ metrics are adjusted to exclude restructuring charges and are non-IFRS measures. This is a change in nomenclature only. See ‘Financial statements and other information’ for Alternative performance measures. 
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. 2 Excluding the non-cash impairment recorded in the second quarter 2024, relating to the impairment of intangible assets mainly attributed to the Vonage acquisition.  Net sales Sales declined by -1%* YoY, with Networks as well as Cloud Software and Services reporting a -1%* decrease. In Networks, strong growth in market area North America was offset by lower customer investment levels in other markets. Sales in segment Enterprise declined by -3%* due to lower sales in Global Communications Platform. Reported Group sales decreased by -4% YoY, to SEK 61.8 (64.5) b.  A new 5G patent licensing agreement was signed in the quarter and IPR licensing revenues increased to SEK 3.5 (2.8) b., part of which related to retroactive revenue for unlicensed periods. 82% of IPR licensing revenues are reported in segment Networks, with the remainder in Cloud Software and Services. Gross income and margin Adjusted gross margin increased to 46.3% (39.2%). The increase was driven primarily by improved gross margin in Networks, resulting from a favorable market mix, cost-reduction actions and a competitive portfolio offering. Gross margin also increased in Cloud Software and Services, and in Enterprise, benefiting from cost-reduction actions and the prioritization of profitable market segments. In addition, gross margin was supported by higher IPR licensing revenues and a non-recurring benefit from a settlement of outstanding customer accounts receivable, as described in the  Q2 2024 report. Adjusted gross income increased to  SEK 28.6 (25.3) b., with the strong increase in gross margin partly offset by lower sales. Reported gross income increased to SEK 28.2 (24.7) b., with a gross margin of 45.6% (38.4%). 
Research and development (R&D) expenses R&D expenses increased to SEK -13.1 (-11.9) b., including   restructuring charges of SEK -1.0 (-0.2) b. Excluding restructuring charges, R&D expenses increased by SEK -0.5 b. YoY, reflecting the investments in R&D for technology leadership and operational resilience as well as lower rate of capitalization of development expenses in Enterprise. The impact from salary increases and higher variable incentive accruals was broadly offset by savings from cost-reduction actions. Selling and administrative (SG&A) expenses SG&A expenses decreased to SEK -9.4 (-9.6) b. including a  SEK 0.4 b. benefit from lower amortization following the impairment of intangible assets in Q2 2024. SG&A expenses increased in segment Enterprise, reflecting investments to improve operational effectiveness. Salary increases and higher variable incentive accruals were offset by cost-reduction actions.  Other operating income and expenses Other operating income and expenses were SEK 0.0 (-32.0) b.  Q3 2023 was impacted by a non-cash impairment charge of  SEK -31.9 b. related to the Vonage acquisition.   Restructuring charges Restructuring charges amounted to SEK -1.6 (-0.9) b. mainly related to redundancy activities. Gross income included SEK -0.4 (-0.5) b. of restructuring charges, while operating expenses included restructuring charges of SEK -1.1 (-0.3) b.    
SEK b. 
Q3
2024 
Q3
2023 
YoY 
change 
Q2
2024 
QoQ 
change 
Jan-Sep
2024 
Jan-Sep
2023 
YoY 
change 
Net sales 61.8 64.5 -4% 59.8 3% 175.0 191.5 -9% 
Organic	sales	growth	¹ - - -1% - - - - -7%
Gross income 28.2 24.7 14% 25.8 9% 76.7 73.0 5%
Gross margin 45.6%38.4% - 43.1% - 43.8%38.1% -
Research and development (R&D) expenses -13.1 -11.9 - -14.9 - -39.6 -37.6 -
Selling and administrative expenses -9.4 -9.6 - -23.1 - -41.1 -29.4 -
Impairment losses on trade receivables 0.1 -0.1 - -0.1 - -0.3 -0.5 -
Other operating income and expenses 0.0 -32.0 - -1.3 - 0.7 -31.7 -
Share in earnings of JV´s and associated companies 0.0 0.0 13% 0.0 -45% 0.1 0.1 -11%
EBI T (loss) 5.8 -28.9 - -13.5 - -3.6 -26.2 -
EBIT margin ¹ 9.3%-44.8% - -22.6% - -2.1%-13.7% -
EBI TA ¹ 6.2 3.8 62% 2.4 156% 13.5 8.2 65%
EBITA margin ¹ 10.0% 5.9% - 4.1% - 7.7% 4.3% -
Financial income and expenses, net -0.5 -0.7 - -0.4 - -1.3 -2.1 -
Inc ome  tax -1.4 -0.9 - 2.9 - 0.5 -1.3 -
Net income (loss) 3.9 -30.5 - -11.0 - -4.5 -29.5 -
Restructuring	charges -1.6 -0.9 - -1.6 - -3.4 -5.0 -
Adjusted financial measures ¹
Adjusted gross margin 46.3%39.2% - 43.9% - 44.4%39.1% -
Adjusted EBIT (loss) 7.3 -28.0 - -11.9 - -0.3 -21.2 -
Adjusted EBIT margin 11.9%-43.5% - -19.9% - -0.1%-11.1% -
Adjusted EBIT excluding impairments ² 7.3 3.9 88% 3.2 127% 14.9 10.7 38%
Adjusted EBIT margin excluding impairments ² 11.9% 6.0% - 5.4% - 8.5% 5.6% -
Adjusted EBITA 7.8 4.7 64% 4.1 91% 16.9 13.2 28%
Adjusted EBITA margin 12.6% 7.3% - 6.8% - 9.7% 6.9% -

===== SIDA 3 =====

3 Ericsson  |  Third quarter report 2024. October 15, 2024. Group results  
EBITA Adjusted EBITA increased to SEK 7.8 (4.7) b., as higher gross income was partly offset by increased operating expenses. The adjusted EBITA margin was 12.6% (7.3%). EBITA increased to SEK 6.2 (3.8) b. corresponding to an  EBITA margin of 10.0% (5.9%). EBIT  Adjusted EBIT increased to SEK 7.3 (-28.0) b. The adjusted EBIT margin was 11.9% (-43.5%). Adjusted EBIT in Q3 2023 would have been SEK 3.9 b. excluding the impairment charge. Amortization impacted EBIT by SEK -0.4 (-0.9) b.  Reported EBIT increased to SEK 5.8 (-28.9) b. with an EBIT margin of 9.3% (-44.8%).  Financial income and expenses, net Financial income and expenses were stable at SEK -0.5 (-0.7) b. The currency hedge effect was SEK 0.0 (0.0) b. Income tax Taxes were SEK -1.4 (-0.9) b. A tax rate of 28% is expected for the full year, excluding the tax impact for the SEK -15.1 b. impairment charge recorded in Q2 2024. Net income Net income increased to SEK 3.9 (-30.5) b. Net income in Q3 2023 would have been SEK 1.4 b. excluding the impairment charge of SEK -31.9 b. Diluted EPS increased to SEK 1.14 (-9.21). Employees  The number of employees on September 30, 2024, was 95,984 compared with 97,985 on June 30, 2024.  
Financial highlights, year-to-date (Jan-Sep) development  Sales decreased by -7%* mainly driven by a -10%* decline in Networks. Cloud Software and Services and Enterprise sales declined by -1%*.  Reported sales decreased by -9% to SEK 175.0 (191.5) b. mainly driven by a -12% sales decline in Networks to SEK 111.4 (126.4) b. Sales in Cloud Software and Services declined by -2% to  SEK 43.2 (44.1) b. and Enterprise sales declined by -1% to  SEK 18.8 (19.0) b. Sales grew by 15%* in market area North America.  Growth was offset by materially lower sales in market area South East Asia, Oceania and India, as investment levels in India have normalized after a record year in 2023. Sales also declined organically in the other market areas. Sales were supported by IPR licensing revenues of SEK 10.5 (8.4) b.  Adjusted gross income increased to SEK 77.7 (74.8) b. while gross margin increased to 44.4% (39.1%). The improvement in gross margin was driven by a more favorable market mix, cost-reduction initiatives, and increased IPR licensing revenues. Reported gross income was SEK 76.7 (73.0) b. with a gross margin of  43.8% (38.1%). Adjusted EBITA increased to SEK 16.9 (13.2) b. with a margin of  9.7% (6.9%), supported by higher gross income despite lower sales.  Increased operating expenses were more than offset by a one-time gain of SEK 1.9 b. in Q1 2024. EBITA increased to SEK 13.5 (8.2) b. and the EBITA margin was 7.7% (4.3%). Adjusted EBIT (loss) was SEK -0.3 (-21.2) b. with a margin of  -0.1% (-11.1%), including a SEK -15.1 (-31.9) b. impairment charge impact. Amortization of intangible assets was SEK -2.0 (-2.5) b. Reported EBIT (loss) was SEK -3.6 (-26.2) b., and the EBIT margin was -2.1% (-13.7%). Net income (loss) was SEK -4.5 (-29.5) b. including a  SEK -11.4 (-31.9) b. impairment charge impact and restructuring charges of SEK -3.4 (-5.0) b. The net income increase was also supported by SEK 1.8 b. lower taxes. Diluted EPS increased to  SEK -1.43 (-8.96).

===== SIDA 4 =====

4 Ericsson  |  Third quarter report 2024. October 15, 2024. Market area sales  
Market area sales
  Market Area North America  Sales increased by 55%* YoY. Networks sales increased by 80%* benefiting strongly from recent contract wins and selective network investments by some large customers. Cloud Software and Services sales declined by -4%* due to project delivery milestones in the prior year period. Reported sales increased by 51% YoY. Market Area Europe and Latin America Sales increased by 1%* YoY. Sales in Europe increased slightly, benefiting from strong deliveries in the quarter, despite a continued challenging market environment. In Latin America, sales decreased due to increased competition and lower customer network investments. Reported sales declined by -2% YoY. Market Area South East Asia, Oceania and India Sales decreased by -43%* YoY. Networks sales declined primarily due to normalized investment levels in India after a record year in 2023. Cloud Software and Services sales declined due to project delivery milestones in the prior year period and descoping of a managed services contract. Reported sales declined by -44% YoY. Since the second quarter, Ericsson has been awarded major new contracts in multiple markets, including 4G and 5G deals with Vodafone Idea in India, and the majority share of Viettel’s nationwide 5G deployment in Vietnam. 
Market Area North East Asia Sales declined by -29%* YoY. Networks sales declined due to a slowdown in customer capex investments in some 5G front-runner markets, after significant deployment in recent years. Cloud Software and Services sales were stable. Reported sales declined by -31% YoY.  Market Area Middle East and Africa Sales declined by -22%* YoY. Sales declined in Networks, primarily driven by macroeconomic headwinds and reduced customer capex investments. Cloud Software & Services sales were stable. Reported sales decreased by -24% YoY. Market Area Other Market area Other primarily includes IPR licensing revenues and almost all sales in segment Enterprise. Sales increased by 4%* YoY driven by IPR licensing revenues. Reported sales increased by 1% YoY. IPR A new 5G patent licensing agreement was signed in the quarter and IPR licensing revenues increased to SEK 3.5 (2.8) b, part of which related to retroactive revenue for unlicensed periods. IPR licensing revenues are expected to reach at least SEK 13 b. in 2024, and opportunities to further grow IPR licensing revenues remain.  
SEK b.
Q3
2024
Q3
2023
YoY 
change
YoY 
organic 
growth
Q2
2024
QoQ 
change
Jan-Sep
2024
Jan-Sep
2023
YoY 
change
YoY 
organic 
growth
North America 20.4 13.5 51% 55% 16.6 23% 50.9 44.8 14% 15%
Europe and Latin America 15.2 15.5 -2% 1% 15.6 -3% 44.0 45.7 -4% -3%
Sout h East  Asia, Oceania and I ndia 7.7 13.8 -44% -43% 7.7 0% 24.0 41.5 -42% -41%
North East Asia 3.7 5.4 -31% -29% 4.6 -19% 11.7 14.8 -21% -16%
Middle East and Africa 4.9 6.5 -24% -22% 4.9 -1% 14.5 16.0 -10% -9%
Other 10.0 9.9 1% 4% 10.4 -4% 30.0 28.7 5% 6% 
Of	which	IPR 3.5 2.8 25% - 3.9 -10% 10.5 8.4 24% -
Total 61.8 64.5 -4% -1% 59.8 3% 175.0 191.5 -9% -7%

===== SIDA 5 =====

5 Ericsson  |  Third quarter report 2024. October 15, 2024. 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 decreased by -1%* YoY, as strong sales growth in market area North America was offset by declines in most other markets. Sales increased by 6% sequentially, ahead of average seasonality, driven by North America. Reported sales decreased by -4% YoY to  SEK 40.0 (41.5) b. Sales in market area North America increased by 80%* YoY, benefiting from contract wins and selective network investments by some large customers. Sales in the other market areas decreased, with a -49%* decline in market area South East Asia, Oceania and India as operator capex investments in India have normalized following a peak in 2023. Sales were supported by increased IPR licensing revenues, benefiting from new 5G licensing agreements signed in each of Q1-Q3 2024. Gross income and margin Adjusted gross margin increased to 48.7% (39.9%), as a result of a favorable business mix, continued cost-reduction initiatives and operational leverage in the supply chain. In addition, gross margin was supported by higher IPR licensing revenues and a non-recurring benefit from a settlement of outstanding customer accounts receivable. Adjusted gross income increased to  SEK 19.5 (16.6) b. EBITA  Adjusted EBITA increased to SEK 8.1 (5.2) b. and the EBITA margin was 20.3% (12.6%). The benefit of higher gross income and continued efficiency improvements was partly offset by increased R&D investments. These R&D investments support the strategy to build high-performing programmable networks, ensure continued technology leadership, and maintain a competitive portfolio. Net sales rolling four quarters were SEK 156.4 b. and the adjusted EBITA margin rolling four quarters was 16.0%. 1 Recognized 5G leader in the portfolio dimension in Omdia Market Landscape: RAN Vendors 2024 and in Gartner® Magic Quadrant™ Critical Capabilities for CSP 5G RAN Network Infrastructure Solutions report 
Mobile Networks – Segment Cloud Software and Services 
  Breakdown of sales into products, services and IPR licensing is available in note 3.  • Sales declined by -1%* YoY. • Gross margin improvement, driven by strategy execution. • Leader2 in Omdia ‘Core Vendors’ market report and in Gartner® ‘5G Core’ Magic Quadrant™.    Net sales Sales declined by -1%* YoY, with lower sales of services due to project delivery milestones. Sales decreased by -1% sequentially, with growth in market areas North America and Middle East and Africa offset by sequential declines in the other market areas. Reported sales decreased by -4% YoY to SEK 15.0 (15.6) b.  Sales grew by 4%* YoY in market area Europe and Latin America as a result of project delivery milestones but declined in other market areas. Sales were supported by increased IPR licensing revenues, benefiting from new 5G licensing agreements signed in each of  Q1-Q3 2024. Gross income and margin Adjusted gross margin increased to 38.7% (36.2%) as a result of improved delivery performance, a favorable product mix and continued focus on commercial discipline. Gross margin was also supported by higher IPR licensing revenues and a non-recurring benefit from a settlement of outstanding customer accounts receivable. Adjusted gross income increased to SEK 5.8 (5.6) b. EBITA  Adjusted EBITA was stable at SEK 0.4 (0.4) b. with an EBITA margin of 2.9% (2.8%). The improvement in gross income was offset by increased investments in the 5G portfolio as well as in resilience. Strategy execution continues, with a focus on commercial discipline, accelerating automation to reduce deployment and maintenance efforts. Net sales rolling four quarters were SEK 62.7 b. and the adjusted EBITA margin rolling four quarters was 3.6%.  2 Recognized 5G leader in Gartner® Magic Quadrant™ for CSP 5G Core Network Infrastructure Solutions, and leader for core portfolio in Omdia Market Landscape: Core Vendors 2024     
SEK b.
Q3
2024 
Q3
2023 
YoY 
change 
Q2
2024 
Net sales 40.0 41.5 -4% 37.7  
Of	which	IPR	licensing	revenues	 2.9 2.3 25% 3.2 
Organic	sales	growth	 - - -1% -
Gross income 19.3 16.1 20% 17.1
Gross margin   48.3%38.9% - 45.5%
EBI T 7.5 4.6 62% 4.8
EBI T margin   18.7%11.1% - 12.6%
EBI TA 7.5 4.7 62% 4.8
EBI TA margin   18.8%11.2% - 12.7%
Restructuring charges -0.6 -0.6 - -0.5
Adjusted financial measures 
Adjusted gross margin 48.7%39.9% - 46.1%
Adjusted EBIT 8.1 5.2 56% 5.2
Adjusted EBIT margin 20.2%12.5% - 13.9%
Adjusted EBITA 8.1 5.2 56% 5.3
Adjusted EBITA margin 20.3%12.6% - 13.9%
SEK b. 
Q3
2024 
Q3
2023 
YoY 
change 
Q2
2024 
Net sales 15.0 15.6 -4% 15.2  
Of	which	IPR	licensing	revenues	 0.6 0.5 25% 0.7 
Organic	sales	growth	 - - -1% -
Gross income 5.5 5.5 1% 5.4
Gross margin 37.0%35.3% - 35.6%
EBIT (loss) -0.4 0.1 - -0.7
EBIT margin  -3.0% 0.6% - -4.8%
EBITA (loss) -0.4 0.1 - -0.7
EBITA margin  -2.9% 0.6% - -4.7%
Restructuring charges -0.9 -0.3 - -0.8
Adjusted financial measures 
Adjusted gross margin 38.7%36.2% - 37.2%
Adjusted EBIT 0.4 0.4 0% 0.1
Adjusted EBIT margin 2.8% 2.7% - 0.6%
Adjusted EBITA 0.4 0.4 -1% 0.1
Adjusted EBITA margin 2.9% 2.8% - 0.6%
• Strong sales in North America. • Gross margin supported by business mix, cost initiatives and a competitive portfolio offering. • Leader1 in Omdia ‘RAN Vendors’ market report and in Gartner® ‘5G RAN’ Magic Quadrant™.

===== SIDA 6 =====

6 Ericsson  |  Third quarter report 2024. October 15, 2024. Segment results  
Enterprise –  Segment Enterprise 
 1 Excluding the non-cash impairment recorded in the second quarter 2024, relating to the impairment of intangible assets mainly attributed to the Vonage acquisition. 2 Common costs are included at segment level only (not distributed within the segment).  
• Sales declined by -3%* YoY. • Refocusing activities on profitable markets and products. • Landmark JV for Network APIs announced.  Net sales Sales declined by -3%* YoY, as lower sales in Global Communications Platform were partly offset by growth in Enterprise Wireless Solutions. Reported sales decreased by  -5% YoY to SEK 6.3 (6.7) b. Sales in Global Communications Platform were negatively impacted, as expected, by the decision to focus on more profitable market segments and to reduce activities in some countries, as well as the earlier announced low-margin customer contract loss in Q4 2023. Sales growth in Enterprise Wireless Solutions slowed to 5% YoY, reflecting lower WWAN growth. These trends are expected to further impact Enterprise sales in the near term. In the quarter, Ericsson Wireless Solutions unveiled new branding and a new product portfolio for enterprise-driven 5G network adoption, including private 5G and neutral host solutions to deliver business-critical connectivity for enterprise environments. Gross income and margin Adjusted gross margin increased to 52.4% (48.8%), benefiting from the decision to focus on more profitable markets and products in Global Communications Platform, and the timing of payments in Technologies and New Businesses. Adjusted gross income was stable at SEK 3.3 (3.3) b. reflecting the renewed focus on profitability. EBITA (loss) Adjusted EBITA (loss) was SEK -0.8 (-0.6) b. Investments to improve operational effectiveness and to build the Global Network Platform increased, broadly offset by lower variable incentive costs and lower rate of capitalization of development expenses. Adjusted EBITA margin was -12.4% (-8.9%). Net sales rolling four quarters were SEK 25.5 b. and the adjusted EBITA margin rolling four quarters was -14.1%. In the quarter, a new joint venture was announced together with  12 of the world’s largest telecom operators to combine and sell network APIs on a global scale. In addition, Vonage announced a collaboration on communication and network APIs with SAP. 
 Segment Other 
  Net sales Reported sales declined to SEK 0.5 (0.7) b., primarily due to the discontinuation of the IoT business. Gross income and margin Adjusted gross income increased to SEK 0.0 (-0.2) b. mainly reflecting a one-off impairment of assets in the Media Businesses in Q3 2023. Adjusted gross margin increased to 5.1% (-24.5%). EBITA (loss) Adjusted EBITA (loss) was SEK 0.0 (-0.3) b.  Net sales rolling four quarters were SEK 2.2 b.  
SEK b. 
Q3
2024 
Q3
2023 
YoY 
change 
Q2
2024 
Net sales 6.3 6.7 -5% 6.5 
Of	which	Global	Comms	Platform	(Vonage)	 3.8 4.2 -9% 3.8 
Of	which	Enterprise	Wireless	Solutions	 1.3 1.2 5% 1.2 
Organic	sales	growth	 - - -3% -
Gross income 3.3 3.3 2% 3.3
Gross margin  52.3%48.7% - 51.0%
EBI T (loss) -1.2 -33.3 - -17.4
EBI T margin  -19.0%-499.1% --268.7%
EBI TA (loss) -0.8 -0.6 - -1.5
EBI TA margin  -13.0%-9.0% - -23.3%
Restructuring charges 0.0 0.0 - -0.3
Adjusted financial measures 
Adjusted gross margin 52.4%48.8% - 51.1% 
Global	Comms	Platform	(Vonage)	 44.0% 41.7% - 43.2% 
Enterprise	Wireless	Solutions	 60.7% 60.0% - 59.5%
Adjusted EBIT (loss) -1.2 -33.3 - -17.1
Adjusted EBIT margin -18.4%-499.0% --264.3%
Adjusted EBIT (loss) excluding impairments ¹-1.2 -1.4 - -2.0
Adjusted EBIT margin excluding impairments ¹-18.4%-21.0% - -31.1%
Adjusted EBITA (loss) -0.8 -0.6 - -1.2 
Of	which	Global	Comms	Platform	(Vonage)	²	-0.4 0.0 - -0.7 
Of	which	Enterprise	Wireless	Solutions	²	 -0.5 -0.7 - -0.7
Adjusted EBITA margin -12.4%-8.9% - -18.9%
SEK b. 
Q3
2024 
Q3
2023 
YoY 
change 
Q2
2024 
Net sales 0.5 0.7 -28% 0.5 
Organic	sales	growth	 - - -26% -
Gross income 0.0 -0.2 - 0.0
Gross margin  1.8%-23.6% - -8.1%
EBI T (loss) -0.1 -0.3 - -0.1
EBI T margin  -14.6%-45.6% - -23.2%
EBI TA (loss) -0.1 -0.3 - -0.1
EBI TA margin  -14.6%-45.6% - -23.0%
Restructuring charges -0.1 0.0 - 0.0
Adjusted financial measures 
Adjusted gross margin 5.1%-24.5% - -7.5%
Adjusted EBIT (loss) 0.0 -0.3 - -0.1
Adjusted EBIT margin -1.4%-47.9% - -14.1%
Adjusted EBITA (loss) 0.0 -0.3 - -0.1
Adjusted EBITA margin -1.4%-47.9% - -13.9%

===== SIDA 7 =====

7 Ericsson  |  Third quarter report 2024. October 15, 2024. 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. 1 Defined as Changes in operating net assets.  
 Cash flow  Free cash flow before M&A was SEK 12.9 (-0.5) b. benefiting from increased profitability and lower working capital. Working capital improved, as a result of a strong focus on inventory and supply chain management, as well as a favorable market mix. Cash flow from financing activities was SEK -4.2 (5.1) b., primarily reflecting the repayment of a USD 281 m. loan and a USD 200 m. credit facility, partly offset by the drawdown of a new USD 108 m. loan. 
Financial position  Gross cash increased sequentially by SEK 8.5 b. to SEK 62.2 b. Ericsson has unutilized committed credit facilities of  SEK 30.3 b. (USD 3.0 b.).  The average maturity of long-term borrowings was 4.0 years as of September 30, 2024, compared with 3.3 years as of  September 30, 2023.  Net cash increased sequentially by SEK 12.4 b. to SEK 25.5 b. driven by positive free cash flow after M&A.  Liabilities for post-employment benefits decreased to SEK 24.7 b. from SEK 26.1 b. due to higher discount rate in Sweden. 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 group liability for post-employment benefits would have been approximately SEK 14.9 b. (SEK 9.8 b. lower than current DBO). 
Free cash flow bridge, SEK b.
Q3
2024 
Q3
2023 
Q2
2024 
Jan-Sep
2024 
Jan-Sep
2023 
Adjusted EBI T (loss) 7.3 -28.0 -11.9 -0.3 -21.2
Depreciation, amortization and impairment losses 2.3 34.9 18.0 22.9 40.8
Restructuring charges -1.6 -0.9 -1.6 -3.4 -5.0
Changes i n w orki ng capi t al   ¹
⁾
7.8 -3.1 6.5 15.0 -18.6
Interes t paid/rec eived,  taxes  paid,  and other -1.5 -1.5 -1.7 -5.5 -3.4
Cash flow  from operat ing act ivit ies 14.4 1.4 9.3 28.7 -7.3
Capex  net  and ot her i nvest i ng act i vi t i es -0.8 -1.3 -1.0 -2.7 -4.2
Repayment of lease liabilities -0.6 -0.7 -0.7 -1.9 -2.1
Free cash flow before M&A 12.9 -0.5 7.6 24.2 -13.5
M&A -0.1 -0.2 0.0 -0.2 -1.9
Free cash flow after M&A 12.9 -0.7 7.5 24.0 -15.5
Cash f l ow  f rom operat i ng act i vi t i es 14.4 1.4 9.3 28.7 -7.3
Cash f l ow  f rom i nvest i ng act i vi t i es -0.3 -1.9 -6.0 -7.6 -1.9
Cash f l ow  f rom f i nanci ng act i vi t i es -4.2 5.1 -5.7 -18.4 -2.7
SEK b.
Sep 30
2024 
Sep 30
2023 
Jun 30
2024 
Gross cash 62.2 40.5 53.7
 - Borrowings, current 3.1 18.8 8.1
 - Borrowings, non-current 33.5 20.1 32.5
Net cash 25.5 1.6 13.1
Equity 85.4 105.4 82.5
Total assets 272.5 306.3 278.5
Capi t al  t urnover ( t i mes) 1.4 1.4 1.4
Return on capital employed (%) -2.9% -18.7% -11.3%
• Free cash flow before M&A was SEK 12.9 b. • Net cash increased by SEK 12.4 b. QoQ to SEK 25.5 b.  • Average maturity of long-term borrowings 4.0 years.

===== SIDA 8 =====

8 Ericsson  |  Third quarter report 2024. October 15, 2024. Key data points  
Key data points   Market  Dell’Oro estimates that the global RAN equipment market will decline by -8% to -10% (-9%) in 2024. North America is expected to grow by 0% to 5% (3%), Europe to decline by -5% to -10% (-7%) and Mainland China to decline by -5% to -10% (-7%). Source: Dell’Oro Mobile RAN quarterly report 2Q24, Aug 2024. Numbers in parenthesis are from the 2024 Dell’Oro Mobile  RAN 5-year forecast, July 2024. Ericsson   Net sales  Reported average seasonality last 3 years (2021–2023), %. 
 Net sales may show large variations between quarters, including currency changes. Currency exposure Rule of thumb: A change by 10% of SEK to USD would have an 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 2024 are expected to be around  SEK 4 b. 
Segments  Networks  Sales growth in Q4 is expected to be below average 3 years seasonality, reflecting a stronger than average Q3. Adjusted gross margin in Q4 is expected to be in the range of  47%-49%. Cloud Software and Services Sales growth in Q4 is expected to be below average 3 years seasonality.    Q4àQ1 Q1àQ2 Q2àQ3 Q3àQ4 Networks -25% +8% +1% +19% Cloud Software and Services -34% +13% +4% +33%

===== SIDA 9 =====

9 Ericsson  |  Third quarter report 2024. October 15, 2024. Parent Company  
Parent Company Income after financial items January – September 2024, was  SEK -4.0 (-14.7) b.  At the end of the quarter, gross cash (cash, cash equivalents plus interest-bearing securities, current and non-current) amounted to SEK 46.2 (25.6) b. There was a decrease in intercompany lending of SEK 2.4 b. and an increase in intercompany borrowing of SEK 3.0 b. in the quarter. At the end of the quarter, non-restricted equity amounted to  SEK 13.9 (14.0) billion, and total equity amounted to  SEK 62.1 (62.2) b. The holding of treasury stock on September 30, 2024, was 15,579,561 Class B shares.

===== SIDA 10 =====

10 Ericsson  |  Third quarter report 2024. October 15, 2024. Other information  
Other informationLegal proceedings not involving governmental authorities On March 3, 2022, Telefonaktiebolaget LM Ericsson (together with its consolidated operating companies and all other subsidiaries, “Ericsson” or the “Company”) and certain officers of Ericsson were named as defendants in a putative class action filed on behalf of purchasers of Ericsson ADS in the United States, in the United States District Court for the Eastern District of New York. An amended complaint was filed on September 9, 2022, which added a former Ericsson officer as a defendant. The amended complaint alleged violations of United States securities laws, in connection with allegedly false and misleading statements principally concerning the Company’s adherence with its compliance and anti-corruption policies and obligations and the conduct of its business in Iraq. On May 24, 2023, the court granted Ericsson’s motion to dismiss and dismissed the case with prejudice, concluding that Ericsson did not violate any disclosure obligation to investors. On June 23, 2023, plaintiff filed a notice of appeal to the United States Court of Appeals for the Second Circuit. Following the submission of appellate briefing over the second half of 2023, oral argument for the appeal was held on March 22, 2024. On September 3, 2024, the Second Circuit affirmed the dismissal.  In August 2022, a civil lawsuit was filed in the United States District Court for the District of Columbia against Telefonaktiebolaget LM Ericsson and Ericsson Inc. (collectively, the “Ericsson defendants”). The lawsuit was brought by US military service members, employees of US government contractors and other civilians who were killed or injured in terrorist attacks in Iraq, Afghanistan and Syria from 2005 to 2021, as well as by their family members. The lawsuit asserts claims against the Ericsson defendants under the US Anti-Terrorism Act alleging that the Ericsson defendants made payments that ultimately aided the terrorist organizations that committed, planned or authorized the attacks. In November 2022, the Ericsson defendants filed a motion to dismiss the complaint. On December 20, 2022, plaintiffs filed an amended complaint, which added additional plaintiffs, including a plaintiff injured in Turkey, and also named Ericsson AB (collectively with the Ericsson defendants, the “Ericsson corporate defendants”), CEO Börje Ekholm and a former employee (who has not been served with process) as additional defendants and also asserted additional allegations and claims. In March 2023, the Ericsson corporate defendants and Mr. Ekholm filed motions to dismiss the amended complaint. Plaintiffs filed their oppositions to defendants’ motions to dismiss the amended complaint in June 2023, and defendants filed reply briefs in support of their motions to dismiss in July 2023. All briefing has been submitted, and resolution of the matter is pending with the District Court. All defendants will continue to vigorously defend this matter. In February 2024, a second civil lawsuit also alleging violations of the US Anti-Terrorism Act was filed in the United States District Court for the District of Columbia. The lawsuit was filed by the same law firm and involves substantially similar factual allegations and claims as those made in the Anti-Terrorism Act lawsuit originally filed in August 2022, and similarly names the same Ericsson corporate defendants, CEO Börje Ekholm and a former employee as defendants. The new lawsuit was brought by additional US military service members, employees of US government contractors and other civilians who were killed or injured in terrorist attacks in Iraq, Afghanistan, Syria, Turkey, Niger, and France from 2005 to 2021, as well as by their family members. The District Court for the District of Columbia has stayed the proceedings in this matter pending its 
decision on the motions to dismiss in the earlier-filed suit. The defendants will vigorously defend this matter. Beginning on August 4, 2023, a number of civil lawsuits have been filed against Telefonaktiebolaget LM Ericsson in Solna District Court, Sweden. As of October 15, 2024, 93 claimants have filed suit, which are coordinated and financed by a UK-based litigation funder. The claimants consist of a group of non-Swedish funds and financial institutions that allegedly are or have been shareholders of the Company. Their damages claims are primarily based on alleged inadequate disclosure of the contents of the Company’s 2019 internal Iraq investigation report. Ericsson filed its statement of defense on March 15, 2024, and will continue to vigorously defend this matter.  On October 11, 2023, Ericsson commenced patent infringement proceedings against certain Lenovo entities (together “Lenovo”) in the Eastern District of North Carolina (“EDNC”). In the course of the proceedings, Ericsson seeks declarations that Ericsson has complied with its FRAND commitments and with the ETSI IPR Policy and that Lenovo has infringed Ericsson patents. Ericsson has also commenced patent infringement proceedings against Lenovo at the United States International Trade Commission (“ITC”) and in other jurisdictions (Brazil and Colombia). In return, Lenovo has filed lawsuits against Ericsson in the High Court of Justice in the UK, at the Unified Patent Court, at the ITC, in the EDNC, and has applied for an anti-suit injunction in the EDNC. On February 14, 2024, the EDNC denied the anti-suit injunction. This decision has been appealed. This is a global dispute, and additional lawsuits and other legal actions may be initiated by the parties. The Company actively manages its IPR portfolio and its need for third party licenses and is involved from time to time, in the ordinary course of business, in litigation related thereto, as plaintiff, defendant and other capacities. In addition to the proceedings discussed above, the Company is, and in the future may be, involved in various other regulatory investigations, lawsuits, claims (including claims by third parties we have indemnified against infringement liability) and proceedings incidental to the ordinary course of business. Legal proceedings involving governmental authorities In February 2022, Ericsson publicly disclosed that an internal investigation in 2019 included a review of the conduct of Ericsson employees, vendors and suppliers in Iraq during the period between 2011 to 2019. The investigators could not determine the ultimate recipients of any payments, nor identify that any Ericsson employee was directly involved in financing terrorist organizations. The Company’s 2019 internal investigation did not conclude that Ericsson made or was responsible for any payments to any terrorist organization. In March 2022, the United States Department of Justice (“DOJ”) informed Ericsson it had determined that, before entering into the Deferred Prosecution Agreement (“DPA”), the Company provided insufficient information to the DOJ about the Company’s 2019 internal investigation into conduct in Iraq. The DOJ also determined that the Company breached the DPA by failing to inform the DOJ about the investigation after entering into the DPA.  On March 2, 2023, the Company reached a resolution (“Plea Agreement”) with the DOJ regarding the non-criminal breaches of

===== SIDA 11 =====

11 Ericsson  |  Third quarter report 2024. October 15, 2024. Other information  
the DPA. Under the Plea Agreement, Ericsson pleaded guilty to previously deferred charges relating to conduct that occurred prior to 2017. In addition, Ericsson agreed to pay a fine of USD 206.7 million. The entry of the Plea Agreement brought the DPA to an end. On June 3, 2024, Ericsson announced the conclusion of the work and term of the independent compliance monitor originally appointed by the DOJ in June 2020 in connection with the DPA. The monitorship and Plea Agreement concluded on June 2, 2024. With respect to the matters discussed in the 2019 internal Iraq investigation report, the Company continues to investigate these matters and related matters in full cooperation with the DOJ. As additional information continues to be identified and evaluated during the ongoing investigations in continued cooperation with the DOJ, 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. In June 2022, the US Securities and Exchange Commission (“SEC”) informed Ericsson that it opened an investigation concerning matters described in the Company’s 2019 internal Iraq investigation report. Under Ericsson’s consent judgment with the SEC, Ericsson is permanently enjoined from violating the anti-bribery, books and records and internal controls provisions in the Foreign Corrupt Practices Act (“FCPA”). Violations of the injunction, consent judgment or securities law could subject the Company to new civil and criminal penalties as well as new enforcement actions. On September 26, 2024, the SEC Staff informed Ericsson that it had concluded its investigation into Ericsson and that based on the information the SEC Staff has to date, the SEC Staff does not intend to recommend an enforcement action by the SEC against Ericsson. 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 (“CCI”). The CCI decided to refer the case to the Director General’s Office for an in-depth investigation. The CCI 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 CCI’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 CCI has no power to conduct the pending investigations against Ericsson. The CCI has appealed this order to the Supreme Court of India.  In April 2019, Ericsson was informed by China’s State Administration for Market Regulations (“SAMR”) Anti-monopoly bureau 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. 
PRESS RELEASES  Aug 16, 2024 Ericsson announces sale of iconectiv Sep 12, 2024 Global telecom leaders join forces to redefine the industry with network APIs Sep 20, 2024 Carolina Dybeck Happe resigns from Ericsson’s Board of Directors

===== SIDA 12 =====

12 Ericsson  |  Third quarter report 2024. October 15, 2024. Risk factors  
Risk factorsEricsson is exposed to a number of risks in its activities. To stimulate identification and support cross-functional treatment within the Ericsson Group, risks are grouped in a number of categories, including, for example, risks relating to technology, IPR, compliance, project execution, operations, products and services, treasury and accounting, the geopolitical environment, M&A, cybersecurity and occupational health and safety. Ericsson’s risk management is embedded into strategy development and operational processes and material Group risks are regularly assessed and reviewed by executives as required by Ericsson’s Material Group Risk Protocol to ensure accountability, effectiveness, efficiency, business continuity and compliance. Risks are defined in both a short-term and long-term perspective and are related to long-term objectives and strategic direction as well as to short-term objectives. Risk factors and uncertainties of relevance to Ericsson are described in the Ericsson Annual Report 2023 and in the Annual Report on Form 20-F for the year ended December 31, 2023 (in the following, the “Annual Report 2023”), as well as in Ericsson’s quarterly reports. Updates to these risk factors and uncertainties observed by Ericsson that are deemed of short-term relevance include, but are not limited to, the following risks described below. See also the risks set out in the section titled “Forward-Looking Statements.” Ericsson’s ability to benefit from intellectual property rights (IPRs), which are critical to the Company’s business, may be limited by changes in regulation relating to patents, inability to prevent infringement, the loss of licenses to or from third parties, infringement claims brought against the Company by competitors and others and changes in the area of open standards when it comes to licensing of open standard essential patents.  As mentioned in the Annual Report 2023, including in the risk factor 1.12, there can be no assurance that the Company’s patents will not be challenged, invalidated, or circumvented, or that any rights granted in relation to Ericsson’s patents will in fact provide the Company with competitive advantages.  Ericsson’s use of a combination of trade secrets, confidentiality policies, and nondisclosure and other contractual arrangements, in addition to relying on patent, copyright and trademark laws to protect Ericsson’s IPRs, may not be adequate to prevent or deter infringement or other misappropriation. In addition, Ericsson relies on many software patents, and limitations on the patentability of software may materially affect Ericsson’s business. Moreover, the Company may not be able to detect unauthorized use or take appropriate and timely steps to establish and enforce Ericsson’s proprietary rights. In fact, existing legal systems of some countries in which Ericsson conducts business offer limited, if any, protection of IPRs. The Company’s solutions may also require it to license technologies from third parties. It may be necessary in the future to seek or renew licenses, and there can be no assurance that they will be available on acceptable terms, or at all. Moreover, the inclusion in Ericsson’s products of software or other intellectual property licensed from third parties on a non-exclusive basis could limit the Company’s ability to protect proprietary rights in Ericsson’s products. Many key aspects of telecommunications and data network technology are governed by industry-wide standards usable by all market participants. As the number of market entrants and the complexity of technology increases, the possibility of functional overlap and inadvertent infringement of IPRs also increases, which 
has been the case with the introduction of 5G technology. In addition to industry-wide standards, other key industry-wide software solutions are currently developed by market participants as free and open-source software. Contributing to the development and distribution of software developed as free and open-source software may limit Ericsson’s ability to enforce applicable patents in the future. Third parties have asserted, and may assert in the future, claims directly against Ericsson or against Ericsson’s customers, alleging infringement of their IPRs. Defending such claims may be expensive, time-consuming and divert the efforts of Ericsson’s management and/or technical personnel. IPR disputes are complex and often take many years to resolve, with parties pursuing remedies across multiple forums and jurisdictions. Interim judgements and verdicts are common and not necessarily indicative of the ultimate outcome.  As a result of litigation, Ericsson could be required to pay damages and other compensation directly or to indemnify Ericsson’s customers for such damages and other compensation, develop non-infringing products/technology or enter into royalty or licensing agreements. However, the Company cannot be certain that such licenses will be available to the Company on commercially reasonable terms or at all, and such judgments could have a material adverse effect on Ericsson’s business, reputation, operating results and financial condition. Using free and open-source software may allow third parties to further investigate the Company’s software due to the accessibility of source code. This may in turn make this software more prone to assertions from third parties. Investigations held by antitrust authorities, court judgments and legislative change could potentially affect Ericsson’s ability to benefit from its patent portfolio when licensing patents necessary to conduct an open standard (e.g. 4G and 5G technology), which could have a material adverse effect on Ericsson’s business, reputation, operating results and financial condition. Ericsson holds a leading patent portfolio in open standards, and possible changes regarding such a portfolio may materially affect Ericsson’s reputation, business, operating results and financial condition.  Ericsson’s ability to benefit from IPRs may be limited by the loss of patent licenses to or from third parties. Patent licensing agreements are generally multi-year and term based and the process for renewal of these licenses normally requires negotiations, particularly in conjunction with technology shifts and the introduction of new standards, such as 5G. Such renewals and negotiations may take time to resolve, sometimes involve litigation and may have material adverse impacts on Ericsson’s business and financial position, including on the timing for and level of revenues from the IPR licensing contract portfolio.  Challenging global economic conditions and political unrest and uncertainty, geopolitical risks and trade frictions may increase the uncertainty around the direction of the global cellular eco-systems and standards, which could have adverse effects on Ericsson’s IPR licensing revenues as well as on the ability to acquire licenses.

===== SIDA 13 =====

13 Ericsson  |  Third quarter report 2024. October 15, 2024. Risk factors  
Ericsson is subject to certain US, UK and other anti-corruption (including anti-bribery, anti-money-laundering, sanctions, terror finance and anti-terrorism) laws, rules and regulations and other regulatory requirements or conditions in other jurisdictions, or imposed as a result of foreign direct investment reviews and decisions. Ericsson may be subject to further adverse consequences under the injunction issued in connection with the 2019 settlement with the SEC, as well as other investigations by governmental authorities. As mentioned in the Annual Report 2023, including in the risk factor 3.3, Ericsson is, from time to time, involved in legal proceedings and regulatory investigations, and is subject to certain other regulatory requirements, conditions and agreements. If any of these lawsuits or legal proceedings are determined unfavorably against the Company or it is determined that the Company is not in compliance with any of these regulatory requirements, conditions or agreements, the Company could be required to pay substantial damages, fines and/or penalties, be subject to public scrutiny, negative reputational consequences, or become subject to additional enforcement actions, regulatory review and/or adverse decisions. Ericsson could face potential debarment from government contracting in the United States and elsewhere, reputational risk, as well as potential counterparty reluctance to continue business relationships. In addition, these ongoing matters and investigations require significant resources and costs for investigation, compliance and remediation that could lead to adverse financial and reputational consequences. For example, in connection with the acquisition of Vonage by Ericsson, and as a condition to Committee on Foreign Investment in the United States’ (“CFIUS”) approval of the acquisition, Vonage, Ericsson and the DOJ and the US Department of the Treasury, in their capacity as CFIUS monitoring agencies (“CMAs”), entered into a National Security Agreement (“NSA”) in July 2022, which imposes restrictions on access to certain types of sensitive data, equipment and systems. Vonage and Ericsson are engaged and cooperating with the CMAs in relation to ongoing compliance with the NSA restrictions, related remediation efforts to address concerns raised by the CMAs regarding such access, and the CMAs’ requests for information. The ongoing compliance efforts and related remediation have required changes to the Vonage business, including reduction and cessation of operations in certain jurisdictions. Further changes may be required which could adversely affect the Vonage business, including changes to business structure and additional compliance measures with associated costs. The CMAs review of integrations and connections of Ericsson and Vonage technologies could also increase our time to market. Vonage and Ericsson continue to cooperate with the CMAs in investigating historic and ongoing compliance with the terms of the NSA. The ultimate outcome of these investigations remains uncertain. Violations of a CFIUS mitigation agreement, such as the NSA, can result in an enforcement action imposing monetary penalties or other remedies. CFIUS has increased its resources and focus on enforcement and has recently imposed major financial penalties for violations of mitigation agreements involving unauthorized access to sensitive data and failure to report such incidents promptly to CFIUS. As previously reported, the Company reached a resolution (Plea Agreement) in March 2023 with the DOJ regarding the non-criminal breaches of its DPA. Under the Plea Agreement, Ericsson pleaded guilty to previously deferred charges relating to conduct prior to 2017. In addition, Ericsson agreed to pay a fine of USD 206.7 million. The entry of the Plea Agreement brought the DPA to an end. On June 3, 2024, Ericsson announced the conclusion of the work and term of the independent compliance monitor originally appointed by the DOJ in June of 2020 in connection with the DPA. The monitorship and Plea Agreement concluded on June 2, 2024. 
In addition, as previously reported, in June 2022, the SEC informed Ericsson that it opened an investigation concerning matters described in the Company’s 2019 internal Iraq investigation report. Under Ericsson’s consent judgment with the SEC, Ericsson is permanently enjoined from violating the anti-bribery, books and records and internal controls provisions in the FCPA. Violations of the injunction, consent judgment or securities law could subject the Company to new civil and criminal penalties as well as new enforcement actions. On September 26, 2024, the SEC Staff informed Ericsson that it had concluded its investigation into Ericsson and that based on the information the SEC Staff has to date, the SEC Staff does not intend to recommend an enforcement action by the SEC against Ericsson. The Company’s 2019 internal Iraq investigation did not conclude that Ericsson made or was responsible for any payments to any terrorist organization. With respect to the matters discussed in the 2019 internal Iraq investigation report, the Company continues to investigate these matters and related matters in full cooperation with the DOJ. As additional information continues to be identified and evaluated during the ongoing investigations in continued cooperation with the DOJ, it is expected that there will not be any conclusive determinations on the outcome until the investigation is completed. The scope and duration of the investigation remains uncertain. Ericsson is required to comply with anti-corruption and anti-bribery laws in the jurisdictions in which it operates, including the FCPA, the UK Bribery Act (the “Bribery Act”) and other similar laws in other countries in which the Company does business. As a result of doing business in foreign countries, including through channel partners and agents, Ericsson is exposed to risks of violating anti-corruption laws. As a company that operates in certain regulated sectors, Ericsson deals with both governments and state-owned business enterprises, the employees of which are often considered foreign officials for purposes of the FCPA and other applicable anti-bribery legislation. Some of the international locations in which Ericsson operates have developing legal systems and may have higher levels of corruption than more developed jurisdictions. Actual or alleged non-compliance with anti-corruption laws and other laws governing the conduct of business with government entities and/or officials (including local laws) could subject Ericsson to criminal and civil penalties and other remedial measures, which could have a material adverse effect on Ericsson, including its reputation, business, financial condition, operating results, cash flows or prospects. For additional information regarding certain of the legal proceedings and inquiries in which Ericsson is involved, see “Legal proceedings” in the Board of Directors’ Report in the Ericsson Annual Report 2023. Stockholm, October 15, 2024 Telefonaktiebolaget LM Ericsson Börje Ekholm, President and CEO Org. No. 556016-0680 Date for next report: January 24, 2025

===== SIDA 14 =====

14 Ericsson  |  Third quarter report 2024. October 15, 2024. Editor’s Note  
Editor’s noteMedia and analyst briefing Ericsson invites media, investors and analysts to a conference call and live video webcast at 09:00 AM CEST on October 15, 2024.   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 15 =====

15 Ericsson  |  Third quarter report 2024. October 15, 2024. 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 NSA entered into in connection with Ericsson’s acquisition of Vonage, which may adversely affect the Vonage business and subject the Company to additional liabilities - Our goals, strategies, planning assumptions and operational or financial performance expectations - Macroeconomic conditions, including inflationary pressures and effects on customer investments, market recovery and growth - Ongoing geopolitical and trade uncertainty, including challenging global economic conditions, market trends and pandemics such as COVID-19 - Risks related to cybersecurity and privacy - Industry trends, future characteristics and development of the markets in which we operate - Our ability to comply with legal and regulatory requirements internationally - Our future liquidity, capital resources, capital expenditures, cost savings and profitability - The expected demand for our existing and new products and services as well as plans to launch new products and services including research and development expenditures - Our ability to deliver on future plans and achieve future growth - The expected operational or financial performance of strategic cooperation activities and joint ventures - Risks related to acquisitions and divestments, including our ability to successfully consummate such transactions, 
protect the value of acquisitions during integration, or achieve the value anticipated with an acquisition - Extent of impairment impacts on cash flow and dividend capacity in future periods, which is assessed based on full- year performance and is impacted by a variety of factors, including earnings, business outlook and financial position - Trends related to our industry, including our regulatory environment, competition and customer structure - Other factors included in our filings with the SEC, including the factors described throughout this report, included in the section Risk Factors, and in “Risk Factors” in the Annual Report 2023, as updated by subsequent reports filed with the SEC.   These forward-looking statements also represent our estimates, assumptions and expectations only as of the date that they were made, and to the extent they represent third-party data, we have not undertaken to independently verify such third-party data and do not intend to do so. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements and are urged to carefully review and consider the various disclosures made in this report and in other documents we file from time to time with our regulators that disclose risks and uncertainties that may affect our business. We expressly disclaim a duty to provide updates to these forward-looking statements, and the estimates and assumptions associated with them, after the date of this report, except as required by applicable law or stock exchange regulations.

===== SIDA 16 =====

16 Ericsson  |  Third quarter report 2024. October 15, 2024. Auditors’ Review Report  
Auditors’ Review Report Introduction We have reviewed the condensed interim financial information (interim report) of Telefonaktiebolaget LM Ericsson (publ.) as of September 30, 2024, and the nine months period then ended. The board of directors and the CEO are responsible for the preparation and presentation of the interim report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review. Scope of review We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, Review of Interim Report Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing, ISA, and other generally accepted auditing standards in Sweden. The procedures performed
in a review do not enable us to obtain assurance that would make us aware of all significant matters that might be identified in an audit. Therefore, the conclusion expressed based on a review does not give the same level of assurance as a conclusion expressed based on an audit. Conclusion Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act, regarding the Group, and with the Swedish Annual Accounts Act, regarding the Parent Company. Stockholm, October 15, 2024 Deloitte AB Thomas Strömberg  Authorized Public Accountant

===== SIDA 17 =====

17 Ericsson  |  Third quarter report 2024. October 15, 2024. Financial statements and other information  
Financial statements and other information   
Contents Financial statements (unaudited) ................................................................................................................................................................................................. 18 Condensed consolidated income statement ................................................................................................................................................................................................... 18 Condensed statement of comprehensive income (loss) ............................................................................................................................................................................. 18 Condensed consolidated balance sheet ........................................................................................................................................................................................................... 19 Condensed consolidated statement of cash flows ....................................................................................................................................................................................... 20 Condensed consolidated statement of changes in equity ......................................................................................................................................................................... 21 Condensed consolidated income statement – isolated quarters ............................................................................................................................................................ 21 Condensed consolidated statement of cash flows – isolated quarters ................................................................................................................................................ 22 Condensed Parent Company income statement ........................................................................................................................................................................................... 23 Condensed Parent Company statement of comprehensive income (loss) .......................................................................................................................................... 23 Condensed Parent Company balance sheet ................................................................................................................................................................................................... 24 Accounting policies and Explanatory notes (unaudited) ........................................................................................................................................................ 25 Note 1 – Accounting policies ................................................................................................................................................................................................................................ 25 Note 2 – Segment information ............................................................................................................................................................................................................................ 26 Note 3 – Financial income and expenses, net ............................................................................................................................................................................................... 30 Note 4 – Provisions .................................................................................................................................................................................................................................................. 31 Note 5 – Financial risk management ................................................................................................................................................................................................................ 32 Note 6 – Cash flow ................................................................................................................................................................................................................................................... 33 Note 7 – Contingent liabilities and Assets pledged as collateral ............................................................................................................................................................ 33 Note 8 – Share information .................................................................................................................................................................................................................................. 34 Note 9 – Employee information .......................................................................................................................................................................................................................... 34 Note 10 – Goodwill and Customer relationships, IPR and other intangible assets ......................................................................................................................... 34 Note 11 – Information on future divestment ................................................................................................................................................................................................. 35 Alternative performance measures (unaudited) ....................................................................................................................................................................... 36 Sales growth adjusted for comparable units and currency ....................................................................................................................................................................... 36 Items excluding restructuring charges and impairments of goodwill and intangible assets ........................................................................................................ 37 EBITA and EBITA margin / Adjusted EBITA and EBITA margin ........................................................................................................................................................... 38 Rolling four quarters of net sales and adjusted EBITA margin (%) ....................................................................................................................................................... 38 Gross cash and net cash, end of period ............................................................................................................................................................................................................ 39 Capital employed ...................................................................................................................................................................................................................................................... 39 Capital turnover ......................................................................................................................................................................................................................................................... 39 Return on capital employed .................................................................................................................................................................................................................................. 40 Equity ratio .................................................................................................................................................................................................................................................................. 40 Return on equity ........................................................................................................................................................................................................................................................ 40 Free cash flow before M&A / Free cash flow after M&A / Free cash flow before M&A (% of net sales) .................................................................................. 41 Sales growth by segment adjusted for comparable units and currency ............................................................................................................................................... 42 Sales growth by market area adjusted for comparable units and currency ........................................................................................................................................ 42 Rolling four quarters of net sales by segment ................................................................................................................................................................................................ 42 Gross margin by segment by quarter ................................................................................................................................................................................................................. 43 EBIT margin by segment by quarter .................................................................................................................................................................................................................. 43 EBITA and EBITA margin by segment by quarter ....................................................................................................................................................................................... 44 Restructuring charges by function ...................................................................................................................................................................................................................... 45 Restructuring charges by segment ..................................................................................................................................................................................................................... 45 Adjusted gross income and gross margin by segment ................................................................................................................................................................................ 46 Adjusted EBIT (loss) and EBIT margin by segment .................................................................................................................................................................................... 47 Rolling four quarters of adjusted EBITA margin by segment (%) .......................................................................................................................................................... 47 Adjusted EBITA and EBITA margin by segment .......................................................................................................................................................................................... 48 Other ratios .................................................................................................................................................................................................................................................................. 48

===== SIDA 18 =====

18 Ericsson | Third quarter report 2024. October 15, 2024. Financial statements  
Financial statements (unaudited) Condensed consolidated income statement 
 1) Jan-Sep 2024 includes an impairment of intangible assets reported in the second quarter, of which R&D expenses SEK -1.2 billion, SG&A expenses SEK -12.6 billion and Income tax SEK 3.7 billion. 2) Jan-Sep 2024 includes a goodwill impairment of SEK -1.3 billion reported in the second quarter, and a one-time gain of SEK 1.9 billion reported in the first quarter from the resolution of a commercial dispute. Jan-Sep 2023 includes write-down of goodwill of SEK -31.9 billion reported in the third quarter. 3) Based on net income attributable to owners of the Parent Company. 4) Potential ordinary shares are not considered when their conversion to ordinary shares would improve earnings per share.   Condensed statement of comprehensive income (loss) 
  
SEK million Note 2024 2023 Change 2024 2023
Net sales 2 61,794 64,473 -4% 174,967191,470
C ost of sales -33,609-39,745 -15% -98,309-118,473
Gross income 2 28,185 24,728 14% 76,658 72,997
Research and development expenses ¹
⁾
10 -13,140-11,897 10% -39,637-37,646
Selling and administrative expenses ¹
⁾
10 -9,380 -9,617 -2% -41,145-29,378
Impairment losses on trade receivables 78 -115 -168% -263 -477
Operating expenses -22,442-21,629 4% -81,045-67,501
Other operating income and expenses ²
⁾
10 4 -32,031 -100% 680 -31,740
Share of earnings of JV and associated companies 27 24 13% 62 70
Earnings (loss) before financial items and income tax (EBI T) 2 5,774 -28,908 -120% -3,645 -26,174
Financial income and expenses, net 3 -501 -719 -30% -1,333 -2,055
In c o m e  (l o s s ) afte r  fi n an c i al  i te m s 5,273 -29,627 -118% -4,978 -28,229
Income tax ¹
⁾
-1,392 -864 61% 473 -1,284
Net income (loss) 3,881 -30,491 -113% -4,505 -29,513
Net income (loss) attributable to: 
Owners of t he Parent  Company 3,814 -30,670 -4,759 -29,840 
Non-controlling interests 67 179 254 327
Other information 
Average number of shares, basic (million) 8 3,333 3,330 3,332 3,330 
Earnings (loss) per share, basic (SEK) ³
⁾
8 1.14 -9.21 -1.43 -8.96 
Earnings (loss) per share, diluted (SEK) ³
⁾
 
⁴⁾
8 1.14 -9.21 -1.43 -8.96
Q3 Jan-Sep
SEK million 2024 2023 2024 2023
Net income (loss) 3,881-30,491 -4,505-29,513
Other comprehensive income
Ite m s  th at wi l l  n o t b e  r e c l as s i fi e d  to  p r o fi t o r  l o s s
Remeasurements of defined benefit pension plans 1,103 5,458 1,248 9,365
Revaluation of credit risk on borrowings 109 29 -439 -442
Tax on items that will not be reclassified to profit or loss -365 -937 -169 -1,619
Ite m s  th at h av e  b e e n  o r  m ay  b e  r e c l as s i fi e d  to  p r o fi t o r  l o s s
Cash f l ow  hedge reserve 
Gains/losses arising during the period 1,521 194 -764 -2,504 
Reclassification adjustments on gains/losses included in profit or loss 222 246 476 690
Translation reserves
     Changes in translation reserves -3,247 -1,416 1,273 4,751
     Reclassification to profit or loss 22 72 -82 61
Share of  ot her comprehensive income of  associat es -16 -12 11 29
Tax on items that have been or may be reclassified to profit or loss -359 -90 59 374
Total other comprehensive income (loss), net of tax -1,010 3,544 1,61310,705
Total comprehensive income (loss) 2,871-26,947 -2,892-18,808
Total comprehensive income (loss) attributable to: 
Owners of the Parent Company 2,764-27,119 -3,104-19,099 
Non-controlling interests 107 172 212 291
Q3 Jan-Sep

===== SIDA 19 =====

19 Ericsson | Third quarter report 2024. October 15, 2024. Financial statements  
 
Condensed consolidated balance sheet 
   
Sep 30 Dec 31 
SEK million Note 2024 2023
Assets
Non-current assets  
Intangible as s ets 
Capi t al i zed devel opment  ex penses 4,626 4,678 
Goodw ill 10 52,227 52,944 
Cust omer rel at i onshi ps, IP R  and other intangible as s ets 10 7,735 22,667
Property, plant and equipment  10,786 12,195
Right-of-use assets 5,916 6,320
Financial assets 
Equity in JV and associated companies 1,072 1,150 
Other investments in shares and participations 5 1,970 2,091 
Cust omer f i nance, non-current 5 221 1,347 
Interes t-bearing securities, non-current 5 14,806 9,931 
Other financial assets, non-current 5 6,166 6,350
Deferred tax assets 25,012 22,375
130,537 142,048
Current  asset s 
Inventories 29,004 36,073
Cont ract  asset s 7,568 7,999
Trade receivables 5 38,018 42,215
Cust omer f i nance, current 5 3,843 5,570
Current  t ax  asset s 5,799 6,395
Other current receivables 5 10,295 11,962
Interes t-bearing s ec urities ,  c urrent 5 10,063 9,584
Cash and cash equi val ent s 5 37,323 35,190
141,913 154,988
Total assets 272,450 297,036
Equity and liabilities
Equity
St ockholders' equit y 86,630 98,673
Non-controlling interest in equity of subsidiaries -1,275 -1,265
85,355 97,408
Non-current liabilities 
Post-employment benefits 24,733 26,229
Provisions, non-current 4 3,036 4,927
Deferred tax liabilities 1,255 3,880
Borrowings, non-current 5 33,524 29,218
Lease liabilities, non-current 4,767 5,220
Other non-current liabilities 889 755
68,204 70,229
Current  liabilit ies
Provisions, current 4 7,508 6,779
Borrowings, current 5 3,134 17,655
Lease liabilities, current 2,097 2,235
Cont ract  l i abi l i t i es 39,540 34,416
Trade payables 5 25,888 27,768
Current  t ax  l i abi l i t i es 3,821 3,561
Other current liabilities 5 36,903 36,985
118,891 129,399
Total equity and liabilities 272,450 297,036

===== SIDA 20 =====

20 Ericsson | Third quarter report 2024. October 15, 2024. Financial statements  
 
Condensed consolidated statement of cash flows 
     
SEK million Note 2024 2023 2024 2023
Operating activities
Net income (loss) 3,881-30,491 -4,505-29,513
Adjustments for 
Taxes 1,397 1,033 -23 1,887 
Earnings/dividends in JV and associated companies 110 27 72 -12 
Depreciation, amortization and impairment losses 6 2,292 34,901 22,919 40,806 
Other 592 1,021 1,356 3,273
8,272 6,491 19,819 16,441
Changes in operat ing net  asset s
Inventories 1,358 2,098 7,332 2,420
Cust omer f i nance, current  and non- current 1,211 -4,702 2,980 -7,428
Trade receivables and contract assets 3,524 6,469 5,617 8,422
Trade payables -3 -4,367 -2,084 -9,071
Provisions and post-employment benefits 955 379 -1,011 257
Cont ract  l i abi l i t i es -117 -2,616 5,005 -2,267
Other operating assets and liabilities, net 859 -350 -2,851-10,912
7,787 -3,089 14,988-18,579
Interes t rec eived 506 284 1,282 962
Interes t paid -526 -599 -2,500 -1,737
Taxes paid -1,642 -1,685 -4,841 -4,392
Cash flow  from operat ing act ivit ies 14,397 1,402 28,748 -7,305
In v e s ti n g  ac ti v i ti e s
Inves tments  in property,  plant and equipment 6 -540 -817 -1,673 -2,577
Sales of  propert y, plant  and equipment 36 51 102 126
Acquisitions/ divestments of subsidiaries and other operations, net -62 -160 -216 -1,915
Product development 6 -264 -485 -977 -1,622
Purchase of interest-bearing securities -5,517 -1,854 -12,980 -3,986
Sales of  int erest - bearing securit ies 4,937 2,847 8,642 10,623
Other investing activities 6 1,113 -1,445 -523 -2,555
Cash flow  from invest ing act ivit ies -297 -1,863 -7,625 -1,906
Financing activities
Proceeds from issuance of borrowings 1,161 6,097 3,130 8,150
Repayment of borrowings -5,127 -2,306 -15,544 -6,218
Dividends paid -8 -9 -4,719 -4,600
Repayment of lease liabilities -607 -691 -1,866 -2,074
Other financing activities 356 2,029 581 2,023
Cash flow  from financing act ivit ies -4,225 5,120 -18,418 -2,719
Effect of exchange rate changes on cash -1,288 -90 -572 481
Net change in cash and cash equivalents 8,587 4,569 2,133-11,449
Cash and cash equivalent s, beginning of period 28,736 22,331 35,190 38,349
Cash and cash equivalent s, end of period 37,323 26,900 37,323 26,900
Q3 Jan-Sep

===== SIDA 21 =====

21 Ericsson | Third quarter report 2024. October 15, 2024. Financial statements  
 
Condensed consolidated statement of changes in equity 
 1) Jan-Sep includes SEK 4,498 (4,507) million of dividend approved by the Annual General Meeting on April 3, 2024 (March 29, 2023) which was paid on 7 October 2024. 
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. Q3 2023 includes a goodwill impairment of SEK -31.9 billion. 3) Based on net income attributable to owners of the Parent Company. 4) Potential ordinary shares are not considered when their conversion to ordinary shares would increase earnings per share.   
SEK million 2024 2023
Opening balance 97,408 133,304
Total comprehensive income (loss) -2,892 -18,808
Sale/ repurchase of  ow n shares -21 -50
Share issue, net 21 50
Long-term variable compensation plans 58 66
Dividends to shareholders ¹ -9,219 -9,095
Transactions with non-controlling interests - -32
Closing balance 85,355 105,435
Jan-Sep
Isolated quarters, SEK million Q3 Q2 Q1 Q4 Q3 Q2 Q1 
Net sales 61,79459,84853,325 71,88164,47364,44462,553
C ost of sales -33,609-34,033-30,667 -43,276-39,745-40,343-38,385
Gross income 28,18525,81522,658 28,60524,72824,10124,168
Research and development expenses ¹
⁾
-13,140-14,926-11,571 -13,018-11,897-13,777-11,972
Selling and administrative expenses ¹
⁾
 -9,380-23,074 -8,691 -9,877 -9,617-10,643 -9,118
Impairment losses on trade receivables 78 -84 -257 209 -115 -313 -49
Operating expenses -22,442-38,084-20,519 -22,686-21,629-24,733-21,139
Other operating income and expenses ²
⁾
4 -1,299 1,975 -125-32,031 264 27
Share of earnings of JV and associated companies 27 49 -14 54 24 56 -10
Earnings before financial items and income tax (EBI T) 5,774-13,519 4,100 5,848-28,908 -312 3,046
Financial income and expenses, net -501 -361 -471 -938 -719 -419 -917
In c o m e  afte r  fi n an c i al  i te m s  5,273-13,880 3,629 4,910-29,627 -731 2,129
Income tax ¹
⁾
-1,392 2,881 -1,016 -1,501 -864 134 -554
Net income (loss) 3,881-10,999 2,613 3,409-30,491 -597 1,575
      
Net income (loss) attributable to:       
Owners of t he Parent  Company 3,814-11,132 2,559 3,394-30,670 -686 1,516 
Non-controlling interests 67 133 54 15 179 89 59
Other information       
Average number of shares, basic (million) 3,333 3,332 3,331 3,330 3,330 3,330 3,330 
Earnings (loss) per share, basic (SEK) ³
⁾
 1.14 -3.34 0.77 1.02 -9.21 -0.21 0.46 
Earnings (loss) per share, diluted (SEK) ³
⁾
 
⁴⁾
 1.14 -3.34 0.77 1.02 -9.21 -0.21 0.45
2024 2023

===== SIDA 22 =====

22 Ericsson | Third quarter report 2024. October 15, 2024. Financial statements  
 
Condensed consolidated statement of cash flows – isolated quarters 
      
Is olated quarters ,  S E K  million Q3 Q2 Q1 Q4 Q3 Q2 Q1 
Operating activities
Net income (loss) 3,881-10,999 2,613 3,409-30,491 -597 1,575
Adjustments for 
Taxes 1,397 -2,693 1,273 1,302 1,033 -215 1,069 
Earnings/dividends in JV and associated companies 110 -41 3 -46 27 -48 9 
Depreciation, amortization and impairment losses 2,29218,015 2,612 3,08334,901 2,813 3,092 
Other 592 424 340 1,417 1,021 606 1,646
8,272 4,706 6,841 9,165 6,491 2,559 7,391
Changes in operat ing net  asset s
Inventories 1,358 3,239 2,735 6,884 2,098 382 -60
Cust omer f i nance, current  and non- current 1,211 -365 2,134 5,720 -4,702 558 -3,284
Trade receivables and contract assets 3,524 1,857 236 -2,089 6,469 1,753 200
Trade payables -3 1,941 -4,022 -966 -4,367 -597 -4,107
Provisions and post-employment benefits 955 304 -2,270 1,051 379 841 -963
Cont ract  l i abi l i t i es -117 -1,398 6,520 -4,821 -2,616 -5,204 5,553
Other operating assets and liabilities, net 859 890 -4,600 801 -350 -1,457 -9,105
7,787 6,468 733 6,580 -3,089 -3,724-11,766
Interes t rec eived 506 385 391 256 284 283 395
Interes t paid -526 -677 -1,297 -543 -599 -549 -589
Taxes paid -1,642 -1,606 -1,593 -976 -1,685 -1,451 -1,256
Cash flow  from operat ing act ivit ies 14,397 9,276 5,075 14,482 1,402 -2,882 -5,825
In v e s ti n g  ac ti v i ti e s
Inves tments  in property,  plant and equipment -540 -699 -434 -720 -817 -806 -954
Sales of  propert y, plant  and equipment 36 42 24 37 51 42 33
Acquisitions/ divestments of subs. and other operations, net -62 -48 -106 -225 -160 -911 -844
Product development -264 -327 -386 -551 -485 -562 -575
Purchase of interest-bearing securities -5,517 -5,845 -1,618 -11,318 -1,854 -2,132 -
Sales of  int erest - bearing securit ies 4,937 1,501 2,204 1,116 2,847 4,072 3,704
Other investing activities 1,113 -611 -1,025 4,854 -1,445 -2,116 1,006
Cash flow  from invest ing act ivit ies -297 -5,987 -1,341 -6,807 -1,863 -2,413 2,370
Financing activities
Proceeds from issuance of borrowings 1,161 2 1,967 11,578 6,097 1,026 1,027
Repayment of borrowings -5,127 -16-10,401 -1,666 -2,306 -2,832 -1,080
Dividends paid -8 -4,711 - -4,504 -9 -4,591 -
Repayment of lease liabilities -607 -658 -601 -783 -691 -690 -693
Other financing activities 356 -313 538 -899 2,029 18 -24
Cash flow  from financing act ivit ies -4,225 -5,696 -8,497 3,726 5,120 -7,069 -770
Effect of exchange rate changes on cash -1,288 -705 1,421 -3,111 -90 562 9
Net change in cash and cash equivalents 8,587 -3,112 -3,342 8,290 4,569-11,802 -4,216
Cash and cash equivalent s, beginning of period 28,73631,84835,190 26,90022,33134,13338,349
Cash and cash equivalent s, end of period 37,32328,73631,848 35,19026,90022,33134,133
2024 2023

===== SIDA 23 =====

23 Ericsson | Third quarter report 2024. October 15, 2024. Financial statements  
 
Condensed Parent Company income statement 
  Condensed Parent Company statement of comprehensive income (loss) 
    
SEK million 2024 2023 2024 2023
Net sales - - - -
Cost  of  sal es - - - -
Gross income - - - -
Operating expenses -252 -177 -983 -1,376
Other operating income and expenses 747 973 4,245 2,903
EBI T 495 796 3,262 1,527
Financial net 2,630-31,895 -7,273 -16,179
In c o m e  (l o s s ) afte r  fi n an c i al  i te m s 3,125-31,099 -4,011 -14,652
Transfers to (-) /  from untaxed reserves - - - -
Inc ome tax -159 -98 -668 -113
Net income (loss) 2,966-31,197 -4,679 -14,765
Q3 Jan-Sep
SEK million 2024 2023 2024 2023
Net income (loss) 2,966-31,197 -4,679 -14,765
Other comprehensive income (loss), net of tax - - - -
Total comprehensive income (loss) 2,966-31,197 -4,679 -14,765
Q3 Jan-Sep

===== SIDA 24 =====

24 Ericsson | Third quarter report 2024. October 15, 2024. Financial statements  
 
Condensed Parent Company balance sheet 
   
Sep 30 Dec 31 
SEK million 2024 2023
Assets
Fixed assets
Intangible as s ets 4 -
Tangible assets 326 344
Financial assets ¹
⁾
120,845126,523
121,175126,867
Current  asset s 
Receivables 16,949 22,433
Short - t erm invest ment s 9,887 9,355
Cash and cash equi val ent s 21,649 15,640
48,485 47,428
Total assets 169,660174,295
Stockholders' equity, provisions and liabilities
Equity
Restricted equity 48,235 48,214
Non-restricted equity 13,908 27,584
62,143 75,798
Provisions 130 275
Non-current liabilities 33,484 29,150
Current  l i abi l i t i es 73,903 69,072
Total stockholders' equity, provisions and liabilities 169,660174,295
¹
⁾
	Of	which	interest-bearing	securities,	non-current 14,806 9,930

===== SIDA 25 =====

25 Ericsson | Third quarter report 2024. October 15, 2024. Accounting policies and Explanatory notes  
 
Accounting policies and Explanatory notes (unaudited) Note 1 – Accounting policies The Group This condensed consolidated interim financial report for the reporting period ended September 30, 2024, has been prepared in accordance with International Accounting Standard IAS 34 “Interim Financial Reporting”. The term “IFRS” used in this document refers to the application of IAS and IFRS as well as interpretations of these standards as issued by IASB’s Standards Interpretation Committee (SIC) and IFRS Interpretations Committee (IFRIC). The accounting policies adopted are consistent with those of the annual report for the year ended December 31, 2023, and should be read in conjunction with that annual report. Amendments to IFRS standards that became effective during 2024 do not have a material impact on the result and financial position of the Company.

===== SIDA 26 =====

26 Ericsson | Third quarter report 2024. October 15, 2024. Accounting policies and Explanatory notes  
 
Note 2 – Segment information Net sales by segment by quarter 
     
Is olated quarters ,  S E K  million Q3 Q2 Q1  Q4 Q3 Q2 Q1 
Networks 40,01637,67933,715 44,99841,53742,44042,467 
Of	which	Products 31,242 28,583 25,397 34,704 31,740 32,774 32,175 
Of	which	Services 8,774 9,096 8,318 10,294 9,797 9,666 10,292
Cl oud Sof t w are and Servi ces 14,95315,18013,045 19,55815,56415,10813,400 
Of	which	Products 5,240 4,814 4,529 7,046 5,010 5,161 4,455 
Of	which	Services 9,713 10,366 8,516 12,512 10,554 9,947 8,945
Enterprise 6,319 6,484 5,970 6,698 6,673 6,379 5,995
Other 506 505 595 627 699 517 691
Total 61,79459,84853,325 71,88164,47364,44462,553
Sequent ial change, percent Q3 Q2 Q1  Q4 Q3 Q2 Q1 
Networks 6% 12% -25% 8% -2% 0% -28% 
Of	which	Products 9% 13% -27% 9% -3% 2% -30% 
Of	which	Services -4% 9% -19% 5% 1% -6% -20%
Cl oud Sof t w are and Servi ces -1% 16% -33% 26% 3% 13% -34% 
Of	which	Products 9% 6% -36% 41% -3% 16% -45% 
Of	which	Services -6% 22% -32% 19% 6% 11% -26%
Enterprise -3% 9% -11% 0% 5% 6% -5%
Other 0% -15% -5% -10% 35% -25% -17%
Total 3% 12% -26% 11% 0% 3% -27%
Year over year change, percent Q3 Q2 Q1  Q4 Q3 Q2 Q1 
Networks -4% -11% -21% -23% -14% -8% 4% 
Of	which	Products -2% -13% -21% -24% -11% -7% 3% 
Of	which	Services -10% -6% -19% -20% -21% -10% 7%
Cl oud Sof t w are and Servi ces -4% 0% -3% -3% 10% 8% 11% 
Of	which	Products 5% -7% 2% -12% 5% 10% 23% 
Of	which	Services -8% 4% -5% 3% 12% 7% 6%
Enterprise -5% 2% 0% 6% 34% 275% 275%
Other -28% -2% -14% -24% 0% -32% 4%
Total -4% -7% -15% -16% -5% 3% 14%
Year t o dat e, SEK million Jan-Sep Jan-Jun Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Networks 111,41071,39433,715 171,442126,44484,90742,467 
Of	which	Products 85,222 53,980 25,397 131,393 96,689 64,949 32,175 
Of	which	Services 26,188 17,414 8,318 40,049 29,755 19,958 10,292
Cl oud Sof t w are and Servi ces 43,17828,22513,045 63,63044,07228,50813,400 
Of	which	Products 14,583 9,343 4,529 21,672 14,626 9,616 4,455 
Of	which	Services 28,595 18,882 8,516 41,958 29,446 18,892 8,945
Enterprise 18,77312,454 5,970 25,74519,04712,374 5,995
Other 1,606 1,100 595 2,534 1,907 1,208 691
Total 174,967113,17353,325 263,351191,470126,99762,553
Year over year change, percent Jan-Sep Jan-Jun Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Networks -12% -16% -21% -11% -6% -2% 4% 
Of	which	Products -12% -17% -21% -11% -5% -2% 3% 
Of	which	Services -12% -13% -19% -12% -9% -2% 7%
Cl oud Sof t w are and Servi ces -2% -1% -3% 5% 9% 9% 11% 
Of	which	Products 0% -3% 2% 3% 12% 16% 23% 
Of	which	Services -3% 0% -5% 6% 8% 6% 6%
Enterprise -1% 1% 0% 76% 130% 275% 275%
Other -16% -9% -14% -14% -10% -15% 4%
Total -9% -11% -15% -3% 3% 8% 14%
2024 2023
2024 2023
2024 2023
2024 2023
2024 2023

===== SIDA 27 =====

27 Ericsson | Third quarter report 2024. October 15, 2024. Accounting policies and Explanatory notes  
 
Gross income by segment by quarter 
 
  EBIT (loss) by segment by quarter 
 
    
Is olated quarters ,  S E K  million Q3 Q2 Q1  Q4 Q3 Q2 Q1 
Networks 19,33217,13914,851 18,62616,14616,31816,869
Cl oud Sof t w are and Servi ces 5,537 5,407 4,834 7,174 5,494 4,944 4,476
Enterprise 3,307 3,310 2,865 2,968 3,253 2,954 2,841
Other 9 -41 108 -163 -165 -115 -18
Total 28,185 25,815 22,658 28,605 24,728 24,101 24,168
2024 2023
Year t o dat e, SEK million Jan-Sep Jan-Jun Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Networks 51,32231,99014,851 67,95949,33333,18716,869
Cl oud Sof t w are and Servi ces 15,77810,241 4,834 22,08814,914 9,420 4,476
Enterprise 9,482 6,175 2,865 12,016 9,048 5,795 2,841
Other 76 67 108 -461 -298 -133 -18
Total 76,658 48,473 22,658 101,602 72,997 48,269 24,168
2024 2023
Is olated quarters ,  S E K  million Q3 Q2 Q1  Q4 Q3 Q2 Q1 
Networks 7,492 4,750 4,156 6,112 4,627 2,623 6,020
Cl oud Sof t w are and Servi ces -443 -728 -363 1,836 86 -1,200 -942
Enterprise -1,201-17,424 -1,582 -1,643-33,302 -1,679 -1,712
Other -74 -117 1,889 -457 -319 -56 -320
Total 5,774 -13, 519 4,100 5,848 -28, 908 -312 3,046
2024 2023
Year t o dat e, SEK million Jan-Sep Jan-Jun Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Networks 16,398 8,906 4,156 19,38213,270 8,643 6,020
Cl oud Sof t w are and Servi ces -1,534 -1,091 -363 -220 -2,056 -2,142 -942
Enterprise -20,207-19,006 -1,582 -38,336-36,693 -3,391 -1,712
Other 1,698 1,772 1,889 -1,152 -695 -376 -320
Total -3, 645 -9, 419 4,100 -20, 326-26, 174 2,734 3,046
2024 2023

===== SIDA 28 =====

28 Ericsson | Third quarter report 2024. October 15, 2024. Accounting policies and Explanatory notes  
 
Net sales by market area by quarter 
 
 
 
 
  
Is olated quarters ,  S E K  million Q3 Q2 Q1  Q4 Q3 Q2 Q1 
North America 20,36016,58813,944 14,40413,45614,44316,927
Europe and Latin America ¹
⁾
 ²
⁾
15,15015,63913,229 19,21815,47515,97214,219
Sout h East  Asia, Oceania and I ndia 7,702 7,694 8,565 11,80413,76413,83913,911
North East Asia 3,686 4,561 3,424 9,129 5,378 5,062 4,363
Middle East and Africa 4,883 4,941 4,633 7,750 6,455 5,348 4,186
Other ¹
⁾
 ²
⁾
10,01310,425 9,530 9,576 9,945 9,780 8,947
Total 61,794 59,848 53,325 71,881 64,473 64,444 62,553
¹
⁾
	Of	which	in	Sweden 432 583 729 339 454 370 611
²
⁾
	Of	which	in	EU 8,157 8,606 7,566 10,148 7,850 8,054 8,205
2024 2023
Sequent ial change, percent Q3 Q2 Q1  Q4 Q3 Q2 Q1 
North America 23% 19% -3% 7% -7% -15% -33%
Europe and Latin America ¹
⁾
 ²
⁾
-3% 18% -31% 24% -3% 12% -32%
Sout h East  Asia, Oceania and I ndia 0% -10% -27% -14% -1% -1% 24%
North East Asia -19% 33% -62% 70% 6% 16% -48%
Middle East and Africa -1% 7% -40% 20% 21% 28% -43%
Other ¹
⁾
 ²
⁾
-4% 9% 0% -4% 2% 9% -30%
Total 3% 12% -26% 11% 0% 3% -27%
¹
⁾
	Of	which	in	Sweden -26% -20% 115% -25% 23% -39% -21%
²
⁾
	Of	which	in	EU -5% 14% -25% 29% -3% -2% -22%
2024 2023
Year over year change, percent Q3 Q2 Q1  Q4 Q3 Q2 Q1 
North America 51% 15% -18% -43% -49% -37% -18%
Europe and Latin America ¹
⁾
 ²
⁾
-2% -2% -7% -8% 1% 4% -7%
Sout h East  Asia, Oceania and I ndia -44% -44% -38% 5% 74% 74% 138%
North East Asia -31% -10% -22% 9% -4% -31% -20%
Middle East and Africa -24% -8% 11% 5% 14% 2% -3%
Other ¹
⁾
 ²
⁾
1% 7% 7% -25% 41% 158% 157%
Total -4% -7% -15% -16% -5% 3% 14%
¹
⁾
	Of	which	in	Sweden -5% 58% 19% -56% -45% -61% -10%
²
⁾
	Of	which	in	EU 4% 7% -8% -3% -5% -5% -5%
2024 2023
Year t o dat e, SEK million Jan-Sep Jan-Jun Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
North America 50,89230,53213,944 59,23044,82631,37016,927
Europe and Latin America ¹
⁾
 ²
⁾
44,01828,86813,229 64,88445,66630,19114,219
Sout h East  Asia, Oceania and I ndia 23,96116,259 8,565 53,31841,51427,75013,911
North East Asia 11,671 7,985 3,424 23,93214,803 9,425 4,363
Middle East and Africa 14,457 9,574 4,633 23,73915,989 9,534 4,186
Other ¹
⁾
 ²
⁾
29,96819,955 9,530 38,24828,67218,727 8,947
Total 174,967113,173 53,325 263,351191,470126,997 62,553
¹
⁾
	Of	which	in	Sweden 1,744 1,312 729 1,774 1,435 981 611
²
⁾
	Of	which	in	EU 24,329 16,172 7,566 34,257 24,109 16,259 8,205
2024 2023
Year t o dat e, year over year change, percent Jan-Sep Jan-Jun Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
North America 14% -3% -18% -38% -36% -28% -18%
Europe and Latin America ¹
⁾
 ²
⁾
-4% -4% -7% -3% -1% -1% -7%
Sout h East  Asia, Oceania and I ndia -42% -41% -38% 62% 91% 101% 138%
North East Asia -21% -15% -22% -10% -19% -26% -20%
Middle East and Africa -10% 0% 11% 5% 5% 0% -3%
Other ¹
⁾
 ²
⁾
5% 7% 7% 41% 100% 157% 157%
Total -9% -11% -15% -3% 3% 8% 14%
¹
⁾
	Of	which	in	Sweden 22% 34% 19% -45% -42% -40% -10%
²
⁾
	Of	which	in	EU 1% -1% -8% -4% -5% -5% -5%
2024 2023

===== SIDA 29 =====

29 Ericsson | Third quarter report 2024. October 15, 2024. 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
C loud Software 
and Services Enterprise Ot her Total Networks
C loud Software 
and Services Enterprise Ot her Total
North America 16,746 3,467 146 1 20,360 40,623 9,842 340 87 50,892
Europe and Latin America 9,955 5,117 78 0 15,150 28,497 15,315 206 0 44,018
South East Asia, Oceania and India5,549 2,149 5 -1 7,702 17,539 6,401 21 0 23,961
North East Asia 2,834 828 4 20 3,686 8,921 2,635 10 105 11,671
Middle East and Africa 2,115 2,606 161 1 4,883 7,258 6,720 491 -12 14,457
Ot her ¹
⁾
2,817 786 5,925 485 10,013 8,572 2,265 17,705 1,426 29,968
Total 40,016 14,953 6,319 506 61,794 111,410 43,178 18,773 1,606 174,967
Share of  t ot al 65% 24% 10% 1% 100% 63% 25% 11% 1% 100%
Q3 2024 Jan-Sep 2024
Sequent ial change, percent Networks
Cl oud Sof t w are 
and Services Enterprise Other Total
North America 28% 4% 8% -200% 23%
Europe and Latin America -2% -6% 11% - -3%
Sout h East  Asia, Oceania and I ndia 6% -12% -17% -200% 0%
North East Asia -21% -10% 300% -53% -19%
Middle East and Africa -14% 16% -36% -108% -1%
Other -10% -2% -2% 2% -4%
Total 6% -1% -3% 0% 3%
Q3 2024
Year over year change, percentNetworks
Cl oud Sof t w are 
and Services Enterprise Other Total Networks
Cl oud Sof t w are 
and Services Enterprise Other Total
North America 75% -6% 49% -99% 51% 18% -3% 86% 10% 14%
Europe and Latin America -4% 1% 1% - -2% -5% 0% 20% -100% -4%
Sout h East  Asia, Oceania and I ndia-50% -18% -55% - -44% -49% -10% -25% -100% -42%
North East Asia -36% -4% -75% -76% -31% -24% -11% -66% -25% -21%
Middle East and Africa -43% -3% 118% -200% -24% -16% -5% 87%-1300% -10%
Other 19% 26% -7% -11% 1% 19% 51% -4% -11% 5%
Total -4% -4% -5% -28% -4% -12% -2% -1% -16% -9%
Q3 2024 Jan-Sep 2024

===== SIDA 30 =====

30 Ericsson | Third quarter report 2024. October 15, 2024. Accounting policies and Explanatory notes  
 
Top 5 countries in sales 
  1) Based on Jan-Sep 2024. Includes IPR licensing revenues.    IPR licensing revenues by segment by quarter 
 
  Note 3 – Financial income and expenses, net Financial income and expenses, net 
 
  
Count ry, percentage of net sales¹
⁾
2024 2023 2024 2023
United States 44% 31% 40% 33%
India 5% 15% 7% 13%
Chi na 3% 4% 4% 4%
United Kingdom 4% 4% 3% 3%
Japan 3% 3% 3% 3%
Q3 Jan-Sep
Is olated quarters ,  S E K  million Q3 Q2 Q1  Q4 Q3 Q2 Q1 
Networks 2,853 3,187 2,539 2,176 2,283 2,603 2,041
Cl oud Sof t w are and Servi ces 626 700 557 478 500 572 448
Total 3,479 3,887 3,096 2,654 2,783 3,175 2,489
2024 2023
Year t o dat e, SEK million Jan-Sep Jan-Jun Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Networks 8,579 5,726 2,539 9,103 6,927 4,644 2,041
Cl oud Sof t w are and Servi ces 1,883 1,257 557 1,998 1,520 1,020 448
Total 10,462 6,983 3,096 11,101 8,447 5,664 2,489
2024 2023
Isolated quarters, SEK million Q3 Q2 Q1  Q4 Q3 Q2 Q1 
Financial income 724 742 681 518 471 639 517
Financial expenses -991 -1,029 -1,099 -1,287 -1,024 -942 -865
Net foreign exchange gains/ losses -234 -74 -53 -169 -166 -116 -569
Total -501 -361 -471 -938 -719 -419 -917
2024 2023
Year to date, SEK million Jan-Sep Jan-Jun Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Financial income 2,147 1,423 681 2,145 1,627 1,156 517
Financial expenses -3,119 -2,128 -1,099 -4,118 -2,831 -1,807 -865
Net foreign exchange gains/ losses -361 -127 -53 -1,020 -851 -685 -569
Total -1, 333 -832 -471 -2, 993 -2, 055 -1, 336 -917
2024 2023

===== SIDA 31 =====

31 Ericsson | Third quarter report 2024. October 15, 2024. Accounting policies and Explanatory notes  
 
Note 4 – Provisions Provisions 
 
 1) Additions in 2023 and 2024 mainly relates to restructuring provisions for the cost-reduction activities. In Q1 2023 the Company entered into the DOJ Plea Agreement with the DOJ and the provision of SEK -2.3 billion (including estimated expenses for the extended compliance monitorship) made in Q4 2022 was utilized in Q2 2023.        
Is olated quarters ,  S E K  million Q3 Q2 Q1  Q4 Q3 Q2 Q1 
Opening balance 10,20010,06511,706 11,53512,00510,54111,588
Additions ¹
⁾
2,761 2,472 783 2,556 1,462 4,760 1,699
Utilization -1,872 -1,448 -2,140 -1,728 -1,422 -2,953 -2,463
Of	which	restructuring -1,286 -755 -932 -1,175 -994 -423 -274
Reversal of excess amounts -333 -411 -364 -368 -384 -564 -224
Reclassification, translation difference and other -212 -478 80 -289 -126 221 -59
Closing balance 10,54410,20010,065 11,70611,53512,00510,541
Of	which	restructuring 3,897 3,757 2,953 3,720 4,235 4,413 1,096
2024 2023
Year t o dat e, SEK million Jan-Sep Jan-Jun Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Opening balance 11,70611,70611,706 11,58811,58811,58811,588
Additions ¹
⁾
6,016 3,255 783 10,477 7,921 6,459 1,699
Utilization -5,460 -3,588 -2,140 -8,566 -6,838 -5,416 -2,463
Of	which	restructuring -2,973 -1,687 -932 -2,866 -1,691 -697 -274
Reversal of excess amounts -1,108 -775 -364 -1,540 -1,172 -788 -224
Reclassification, translation difference and other -610 -398 80 -253 36 162 -59
Closing balance 10,54410,20010,065 11,70611,53512,00510,541
Of	which	restructuring 3,897 3,757 2,953 3,720 4,235 4,413 1,096
2024 2023

===== SIDA 32 =====

32 Ericsson | Third quarter report 2024. October 15, 2024. 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 15.4 billion, disposals and repayments of SEK 18.7 billion and revaluation gain of SEK 0.1 billion. 2) Total Cash and cash equivalent is SEK 37.3 (35.2 on Dec 31, 2023) billion, of which SEK 19.4 (17.5 on Dec 31, 2023) billion relating to Cash equivalents are presented in the table above.    Exchange rates used in the consolidation 
   
SEK billion
C arrying 
value Level 1 Level 2 Level 3 C arrying 
value Level 1 Level 2 Level 3
Assets at fair value through profit or loss
  C ustomer finance ¹
⁾
4.1 - - 4.1 6.9 - - 6.9
  Interest-bearing securities 24.6 23.4 1.2 - 19.1 18.6 0.5 -
  C ash equivalents ²
⁾
19.4 0.3 19.1 - 17.5 0.8 16.7 -
  Other financial assets 2.8 0.9 - 1.9 2.1 0.1 - 2.0
  Other current assets 1.2 - 1.2 - 1.9 - 1.9 -
Assets at fair value through OC I
  Trade receivables 38.0 - - 38.0 42.2 - - 42.2
Assets at amortized costs
  Interest-bearing securities 0.3 - - - 0.4 - - -
  Other financial assets 0.6 - - - 0.6 - - -
Total financial assets 91.0 90.7
Financial liabilities at designated FVTPL
  Parent company borrowings -34.0 -19.2 -14.8 - -38.0 -23.7 -14.3 -
Financial liabilities at FVTPL
  Other current liabilities -0.8 - -0.8 - -1.8 - -1.8 -
Liabilities at amortized cost
  Trade payables -25.9 - - - -27.8 - - -
  Borrowings -2.7 - - - -8.9 - - -
Total financial liabilities -63.4 -76.4
2024 2023
Sep 30 Dec 31 
Fair value hierarchy level Fair value hierarchy level
Jan-Dec
2024 2023 2023
EUR/ SEK - closing rate 11.31 11.48  11.09 
USD/ SEK - closing rate 10.11 10.82  10.01 
Jan-Sep

===== SIDA 33 =====

33 Ericsson | Third quarter report 2024. October 15, 2024. 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 Q3 Q2 Q1  Q4 Q3 Q2 Q1 
Additions 
Property, plant and equipment 540 699 434 720 817 806 954 
C apitalized development expenses 264 327 386 551 485 562 575 
IP R, brands and other intangible assets 78 45 1 1 - 94 2
Total 882 1,071 821 1,272 1,302 1,462 1,531
Depreciation, amortization and impairment losses 
Property, plant and equipment 924 1,161 941 1,354 1,331 1,066 1,183 
C apitalized development expenses 410 349 312 274 222 244 397 
Goodwill, IP R, brands and other intangible assets 429 15,945 793 846 32,735 853 803 
Right-of-use assets 529 560 566 609 613 650 709
Total 2,292 18,015 2,612 3,083 34,901 2,813 3,092
2024 2023
Year to date, SEK million Jan-Sep Jan-Jun Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Additions 
Property, plant and equipment 1,673 1,133 434 3,297 2,577 1,760 954 
C apitalized development expenses 977 713 386 2,173 1,622 1,137 575 
IP R, brands and other intangible assets 124 46 1 97 96 96 2
Total 2,774 1,892 821 5,567 4,295 2,993 1,531
Depreciation, amortization and impairment losses 
Property, plant and equipment 3,026 2,102 941 4,934 3,580 2,249 1,183 
C apitalized development expenses 1,071 661 312 1,137 863 641 397 
Goodwill, IP R, brands and other intangible assets 17,16716,738 793 35,23734,391 1,656 803 
Right-of-use assets 1,655 1,126 566 2,581 1,972 1,359 709
Total 22,91920,627 2,612 43,88940,806 5,905 3,092
2024 2023
Sep 30 Dec 31 
SEK million 2024 2023
Cont i ngent  l i abi l i t i es 3,578 3,037
Assets pledged as collateral 9,055 8,501

===== SIDA 34 =====

34 Ericsson | Third quarter report 2024. October 15, 2024. 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 of SEK 2.70 per share was approved by the AGM on 3 April 2024. The first of two equal dividend payments of SEK 1.35 per share was paid on 10 April 2024, and the second was paid on 7 October 2024.  Note 9 – Employee information Number of employees 
  Note 10 – Goodwill and Customer relationships, IPR and other intangible assets Goodwill and Customer relationships, IPR and other intangible assets 
 The second quarter 2024 includes an impairment loss mainly attributed to the Vonage acquisition of SEK -15.1 (-31.9) billion. The net income impact after tax is SEK -11.4 (-31.9) billion and reported in segment Enterprise. Of the total impairment losses SEK -1.3 (-31.9) billion impacts goodwill, reported on the line-item Other operating income and expenses, and SEK -13.9 (0.0) billion impacts intangible assets, reported on the line-item Research and development expenses of SEK -1.2 billion and Selling and administrative expenses of  SEK -12.6 billion.  The impairment charge in the Vonage CGU is a result of the lower market growth outlook. A change in the EBITA assumptions remains the most sensitive to a possible change.  
2024 2023 2024 2023
Number of shares, end of period (million) 3,348 3,344  3,348 3,344   
Of which class A-shares (million) 262 262  262 262   
Of which class B-shares (million) 3,086 3,082  3,086 3,082  
Number of treasury shares, end of period (million) 16 14  16 14  
Number of shares outstanding, basic, end of period (million) 3,333 3,330  3,333 3,330  
Numbers of shares outstanding, diluted, end of period (million) 3,339 3,337  3,339 3,337  
Average number of treasury shares (million) 16 14  14 10  
Average number of shares outstanding, basic (million) 3,333 3,330  3,332 3,330  
Average number of shares outstanding, diluted (million) ¹
⁾
3,339 3,337  3,339 3,337  
Earnings (loss) per share, basic (SEK) ²
⁾
1.14 -9.21  -1.43 -8.96  
Earnings (loss) per share, diluted (SEK) ¹
⁾
1.14 -9.21  -1.43 -8.96  
Q3 Jan-Sep
End of period Sep 30 Jun 30 Mar 31  Dec 31 Sep 30 Jun 30 Mar 31 
North America 10,27210,37310,498 10,74410,86011,51811,765
Europe and Latin America ¹
⁾
44,13345,08545,143 45,38045,82147,52147,500
Sout h East  Asia, Oceania and I ndia 26,32726,55827,016 27,01627,64827,72627,981
North East Asia 11,11011,61912,084 12,33112,53512,60213,136
Middle East and Africa 4,142 4,350 4,399 4,481 4,487 4,523 4,549
Total 95,984 97,985 99,140 99,952101,351103,890104,931
¹
⁾
	Of	which	in	Sweden 13,633 14,109 13,849 13,977 14,109 14,713 14,384
2024 2023
Year to date, SEK million Goodwill Intangible
assets  Goodwill Intangible 
assets 
Opening balance 52,944 22,667 84,570 26,340
Additions - 124 - 97
Acquired business - - 348 306
Amortizations - -2,047 - -3,321
Impairment losses -1,260 -13,860 -31,897 -19
Translation differences 543 851 -77 -736
Closing balance 52,227 7,735 52,944 22,667
Jan-Sep 2024 Jan-Dec 2023

===== SIDA 35 =====

35 Ericsson | Third quarter report 2024. October 15, 2024. Accounting policies and Explanatory notes  
 
Note 11 – Information on future divestment The company has entered into a binding agreement in relation to the sale of iconectiv, which is an acquired US subsidiary (83.3% ownership) forming part of Segment Enterprise and is a provider of network number portability solutions and data exchange services. The sale, which is subject to the customary closing conditions including regulatory approvals, is expected to be completed during the first half of 2025. The company expects to record a profit on sale of the company. Ericsson’s cash benefit from the transaction, after the settlement of anticipated taxes, transaction expenses, and other liabilities, is expected to be approximately SEK 10.6 billion1) (USD 1.0 billion). The assets and liabilities for iconectiv, which are included in the consolidated balance sheet, are shown in the table below.   1) Assuming a USD/SEK exchange rate of 10.56. Realized exchange rate to be determined on closing.   
  
Goodwill 1,089
C ustomer relationships, IPR and other intangible assets 90
Property, plant and equipment 179
Right-of-use assets 163
Trade receivables 335
C ash and cash equivalents 657
Ot her asset s 158
Total assets 2,671
Lease liabilities 169
C ontract liabilities 297
C urrent tax liabilities 110
Other liabilities 270
Total liabilities 846

===== SIDA 36 =====

36 Ericsson  |  Third quarter report 2024. October 15, 2024. Alternative performance measures Accounting policies and Explanatory notes  
    
Alternative performance measures (unaudited)In this section, the Company presents its Alternative Performance Measures (APMs), which are not recognized measures of financial performance under IFRS. The presentation of APMs has limitations as analytical tools and should not be considered in isolation or as a substitute for related financial measures prepared in accordance with IFRS. APMs are presented to enhance an investor’s evaluation of ongoing operating results, to aid in forecasting future periods and to facilitate meaningful comparison of results between periods. Management uses these APMs to, among other things, evaluate ongoing operations in relation to historical results, for internal planning and forecasting purposes and in the calculation of certain performance-based compensation. APMs should not be viewed as 
substitutes for income statement or cash flow items computed in accordance with IFRS.  This section also includes a reconciliation of the APMs to the most directly reconcilable line items in the financial statements. For more information about non-IFRS key operating measures, see Ericsson Annual Report 2023. As from the second quarter some of the APMs have been renamed and the use of “Adjusted” replaces “excluding restructuring charges.” This is a change in nomenclature only. The calculation methodology and reconciliation are the same.  Rolling four quarters of EBIT has been removed and is replaced by Rolling four quarters of EBITA. The main reason for the update is to align with the targets set for the Group on EBITA. 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. 
 
   
Is olated quarters ,  year over year c hange Q3 Q2 Q1  Q4 Q3 Q2 Q1 
Reported net sales 61,79459,84853,325 71,88164,47364,44462,553 
Acquired business - - - - -1,000 -4,154 -3,894 
Net FX impact 1,832 22 740 -111 -2,052 -3,662 -3,596
Comparabl e net  sal es, ex cl udi ng FX i mpact 63,62659,87054,065 71,77061,42156,62855,063
Comparabl e quart er net  sal es adj . f or acq/ di v busi ness 64,47364,44462,553 85,98068,04062,29255,061
Organic sales growth (%) -1% -7% -14% -17% -10% -9% 0%
2024 2023
Year t o dat e, year over year change Jan-Sep Jan-Jun Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Reported net sales 174,967113,17353,325 263,351191,470126,99762,553 
Acquired business - - - -9,048 -9,048 -8,048 -3,894 
Net FX impact 2,594 762 740 -9,421 -9,310 -7,258 -3,596
Comparabl e net  sal es, ex cl udi ng FX i mpact 177,561113,93554,065 244,882173,112111,69155,063
Comparabl e quart er net  sal es adj . f or acq/ di v busi ness 191,470126,99762,553 271,373185,393117,35355,061
Organic sales growth (%) -7% -10% -14% -10% -7% -5% 0%
2024 2023

===== SIDA 37 =====

37 Ericsson  |  Third quarter report 2024. October 15, 2024. 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. 
 
  
Is olated quarters ,  S E K  million Q3 Q2 Q1  Q4 Q3 Q2 Q1 
Gross income 28,18525,81522,658 28,605 24,728 24,10124,168
Net sales 61,79459,84853,325 71,881 64,473 64,44462,553
Gross margin (%) 45.6% 43.1% 42.5% 39.8% 38.4% 37.4% 38.6%
Gross income 28,18525,81522,658 28,605 24,728 24,10124,168
Restructuring charges included in cost of sales 424 466 122 956 548 552 746
Adjusted gross income 28,60926,28122,780 29,561 25,276 24,65324,914
Net sales 61,79459,84853,325 71,881 64,473 64,44462,553
Adjusted gross margin (%) 46.3% 43.9% 42.7% 41.1% 39.2% 38.3% 39.8%
Operating expenses -22,442-38,084-20,519 -22,686-21,629-24,733-21,139
Restructuring charges included in R&D expenses 966 805 -10 484 197 1,659 91
Restructuring charges included in selling and administrative expenses 163 357 93 80 143 922 143
Operating expenses excluding restructuring charges -21,313-36,922-20,436 -22,122-21,289-22,152-20,905
EBI T (loss) 5,774-13,519 4,100 5,848-28,908 -312 3,046
Net sales 61,79459,84853,325 71,881 64,473 64,44462,553
EBI T margin (%) 9.3%-22.6% 7.7% 8.1% -44.8% -0.5% 4.9%
EBI T (loss) 5,774-13,519 4,100 5,848-28,908 -312 3,046
Total restructuring charges 1,553 1,628 205 1,520 888 3,133 980
Adjusted EBIT (loss) 7,327-11,891 4,305 7,368-28,020 2,821 4,026
Net sales 61,79459,84853,325 71,881 64,473 64,44462,553
Adjusted EBIT margin (%) 11.9%-19.9% 8.1% 10.3% -43.5% 4.4% 6.4%
Adjusted EBIT (loss) 7,327-11,891 4,305 7,368-28,020 2,821 4,026
Impairment of goodwill and intangible as s ets - 15,120 - - 31,916 - -
Adjusted EBIT excluding impairments of goodwill and intangible assets 7,327 3,229 4,305 7,368 3,896 2,821 4,026
Net sales 61,79459,84853,325 71,881 64,473 64,44462,553
Adjusted EBIT margin excluding impairments of goodwill and intangible assets (%) 11.9% 5.4% 8.1% 10.3% 6.0% 4.4% 6.4%
2024 2023
Year t o dat e, SEK million Jan-Sep Jan-Jun Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Gross income 76,65848,47322,658 101,602 72,997 48,26924,168
Net sales 174,967113,17353,325 263,351191,470126,99762,553
Gross margin (%) 43.8% 42.8% 42.5% 38.6% 38.1% 38.0% 38.6%
Gross income 76,65848,47322,658 101,602 72,997 48,26924,168
Restructuring charges included in cost of sales 1,012 588 122 2,802 1,846 1,298 746
Adjusted gross income 77,67049,06122,780 104,404 74,843 49,56724,914
Net sales 174,967113,17353,325 263,351191,470126,99762,553
Adjusted gross margin (%) 44.4% 43.4% 42.7% 39.6% 39.1% 39.0% 39.8%
Operating expenses -81,045-58,603-20,519 -90,187-67,501-45,872-21,139
Restructuring charges included in R&D expenses 1,761 795 -10 2,431 1,947 1,750 91
Restructuring charges included in selling and administrative expenses 613 450 93 1,288 1,208 1,065 143
Operating expenses excluding restructuring charges -78,671-57,358-20,436 -86,468-64,346-43,057-20,905
EBI T (loss) -3,645 -9,419 4,100 -20,326-26,174 2,734 3,046
Net sales 174,967113,17353,325 263,351191,470126,99762,553
EBI T margin (%) -2.1% -8.3% 7.7% -7.7% -13.7% 2.2% 4.9%
EBI T (loss) -3,645 -9,419 4,100 -20,326-26,174 2,734 3,046
Total restructuring charges 3,386 1,833 205 6,521 5,001 4,113 980
Adjusted EBIT (loss) -259 -7,586 4,305 -13,805-21,173 6,847 4,026
Net sales 174,967113,17353,325 263,351191,470126,99762,553
Adjusted EBIT margin (%) -0.1% -6.7% 8.1% -5.2% -11.1% 5.4% 6.4%
         
Adjusted EBIT -259 -7,586 4,305 -13,805-21,173 6,847 4,026
Impairment of goodwill and intangible as s ets 15,12015,120 - 31,916 31,916 - -
Adjusted EBIT excluding impairments of goodwill and intangible assets 14,861 7,534 4,305 18,111 10,743 6,847 4,026
Net sales 174,967113,17353,325 263,351191,470126,99762,553
Adjusted EBIT margin excluding impairments of goodwill and intangible assets (%) 8.5% 6.7% 8.1% 6.9% 5.6% 5.4% 6.4%
2024 2023

===== SIDA 38 =====

38 Ericsson  |  Third quarter report 2024. October 15, 2024. 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, which are non-IFRS financial measures. Ericsson has not provided quantitative reconciliation of these targets to the most directly comparable IFRS measures because certain information needed to reconcile these non-IFRS financial measures to the most comparable IFRS financial measures are dependent on specific items or impacts that are not yet determined, are subject to incarcerating and variability in timing and amount due to their nature, are outside of Ericsson’s control or cannot be predicted, including items and impacts such as currency exchange rate changes, acquisitions and disposals, and charges such as impairments or acquisition related charges. Accordingly, reconciliation of these non-IFRS forward-looking financial measures to the most directly comparable IFRS financial measures are not available without unreasonable efforts. Such unavailable reconciling items could significantly impact our results of operations and financial condition.   Rolling four quarters of net sales and adjusted EBITA margin (%) Net sales, EBITA margin and restructuring charges as a sum of last four quarters. 
  
Isolated quarters, SEK million Q3 Q2 Q1  Q4 Q3 Q2 Q1 
Net income (loss) 3,881-10,999 2,613 3,409-30,491 -597 1,575
Inc ome  tax 1,392 -2,881 1,016 1,501 864 -134 554
Financial income and expenses, net 501 361 471 938 719 419 917
Amortizations and write-downs of acquired intangibles 429 15,945 793 846 32,736 854 802 
Of	which	segment	Enterprise 378 15,916 762 813 32,702 788 767
EBI TA 6,203 2,426 4,893 6,694 3,828 542 3,848
Net sales 61,79459,84853,325 71,88164,47364,44462,553
EBITA margin (%) 10.0% 4.1% 9.2% 9.3% 5.9% 0.8% 6.2%
Restructuring charges 1,553 1,628 205 1,520 888 3,133 980
Adjusted EBITA 7,756 4,054 5,098 8,214 4,716 3,675 4,828
Adjusted EBITA margin (%) 12.6% 6.8% 9.6% 11.4% 7.3% 5.7% 7.7%
2024 2023
Year to date, SEK million Jan-Sep Jan-Jun Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Net income (loss) -4,505 -8,386 2,613 -26,104-29,513 978 1,575
Inc ome  tax -473 -1,865 1,016 2,785 1,284 420 554
Financial income and expenses, net 1,333 832 471 2,993 2,055 1,336 917
Amortizations and write-downs of acquired intangibles 17,16716,738 793 35,23834,392 1,656 802 
Of	which	segment	Enterprise 17,05616,678 762 35,070 34,257 1,555 767
EBI TA 13,522 7,319 4,893 14,912 8,218 4,390 3,848
Net sales 174,967113,17353,325 263,351191,470126,99762,553
EBITA margin (%) 7.7% 6.5% 9.2% 5.7% 4.3% 3.5% 6.2%
Restructuring charges 3,386 1,833 205 6,521 5,001 4,113 980
Adjusted EBITA 16,908 9,152 5,098 21,43313,219 8,503 4,828
Adjusted EBITA margin (%) 9.7% 8.1% 9.6% 8.1% 6.9% 6.7% 7.7%
2024 2023
Rolling four quarters, SEK million Q3 Q2 Q1  Q4 Q3 Q2 Q1 
Net sales 246,848249,527254,123 263,351277,450281,017279,038
EBI TA 20,21617,84115,957 14,912 17,267 21,05227,976
Restructuring charges 4,906 4,241 5,746 6,521 5,229 4,422 1,338
Adjusted EBITA 25,12222,08221,703 21,433 22,496 25,47429,314
Adjusted EBITA margin (%) 10.2% 8.8% 8.5% 8.1% 8.1% 9.1% 10.5%
2024 2023

===== SIDA 39 =====

39 Ericsson  |  Third quarter report 2024. October 15, 2024. 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 Annualized net sales divided by average capital employed. Annualization factor of four is used for isolated quarter. Annualization factor of four is used for Jan-Mar, two is used for Jan-Jun, 4/3 is used for Jan-Sep and one is used for Jan-Dec. 
 
  
SEK million Q3 Q2 Q1  Q4 Q3 Q2 Q1 
C ash and cash equivalents 37,32328,73631,848 35,19026,90022,33134,133
 + Interest-bearing securities, current 10,06313,838 8,948 9,584 9,553 8,513 9,259
 + Interest-bearing securities, non-current 14,80611,14611,177 9,931 4,032 4,878 3,925
Gross cash, end of period 62,19253,72051,973 54,70540,48535,72247,317
 - Borrowings, current 3,134 8,067 8,491 17,65518,77210,35411,577
 - Borrowings, non-current 33,52432,52032,675 29,21820,10323,47622,167
Net cash, end of period 25,53413,13310,807 7,832 1,610 1,892 13,573
2024 2023
SEK million Q3 Q2 Q1  Q4 Q3 Q2 Q1 
Total assets 272,450278,486299,523 297,036306,349343,358345,658
Non-interest-bearing provisions and liabilities  
Provisions, non-current 3,036 2,642 3,952 4,927 5,190 5,263 4,119 
Deferred tax liabilities 1,255 1,295 3,999 3,880 4,343 4,887 4,986 
Other non-current liabilities 889 865 839 755 812 788 716 
Provisions, current 7,508 7,558 6,113 6,779 6,345 6,742 6,422 
Cont ract  l i abi l i t i es 39,54040,70442,538 34,41641,23444,23747,916 
Trade payables 25,88826,73125,305 27,76830,62935,46334,554 
Current  t ax  l i abi l i t i es 3,821 3,710 3,810 3,561 3,029 2,665 2,478 
Other current liabilities 36,90338,48535,786 36,98543,84145,63749,064
Capi t al  empl oyed 153,610156,496177,181 177,965170,926197,676195,403
         
2024 2023
Is olated quarters ,  S E K  million Q3 Q2 Q1  Q4 Q3 Q2 Q1 
Net sales 61,79459,84853,325 71,88164,47364,44462,553
Annualized net sales 247,176239,392213,300 287,524257,892257,776250,212
Average capital employed  
Capi t al  empl oyed at  begi nni ng of  peri od 156,496177,181177,965 170,926197,676195,403202,899 
Capi t al  empl oyed at  end of  peri od 153,610156,496177,181 177,965170,926197,676195,403 
Average capital employed 155,053166,839177,573 174,446184,301196,540199,151
Capi t al  t urnover ( t i mes)  1.6 1.4 1.2 1.6 1.4 1.3 1.3
2024 2023
Year t o dat e, SEK million Jan-Sep Jan-Jun Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Net sales 174,967113,17353,325 263,351191,470126,99762,553
Annualized net sales 233,289226,346213,300 263,351255,293253,994250,212
Average capital employed   
Capi t al  empl oyed at  begi nni ng of  peri od 177,965177,965177,965 202,899202,899202,899202,899 
Capi t al  empl oyed at  end of  peri od 153,610156,496177,181 177,965170,926197,676195,403 
Average capital employed 165,788167,231177,573 190,432186,913200,288199,151
Capi t al  t urnover ( t i mes)  1.4 1.4 1.2 1.4 1.4 1.3 1.3
2024 2023

===== SIDA 40 =====

40 Ericsson  |  Third quarter report 2024. October 15, 2024. Alternative performance measures  
 
Return on capital employed The annualized total of EBIT as a percentage of average capital employed. Annualization factor of four is used for isolated quarter. Annualization factor of four is used for Jan-Mar, two is used for Jan-Jun, 4/3 is used for Jan-Sep and one is used for Jan-Dec. 
 
  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. 
 
  
Is olated quarters ,  S E K  million Q3 Q2 Q1  Q4 Q3 Q2 Q1 
EBI T (loss) 5,774-13,519 4,100 5,848-28,908 -312 3,046
Annualized EBIT (loss) 23,096-54,07616,400 23,392-115,632 -1,24812,184
Average capital employed         
Capi t al  empl oyed at  begi nni ng of  peri od 156,496177,181177,965 170,926197,676195,403202,899 
Capi t al  empl oyed at  end of  peri od 153,610156,496177,181 177,965170,926197,676195,403 
Average capital employed 155,053166,839177,573 174,446184,301196,540199,151
Return on capital employed (%) 14.9% -32.4% 9.2% 13.4% -62.7% -0.6% 6.1% 
20232024
Year t o dat e, SEK million Jan-Sep Jan-Jun Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
EBI T (loss) -3,645 -9,419 4,100 -20,326-26,174 2,734 3,046
Annualized EBIT (loss) -4,860-18,83816,400 -20,326-34,899 5,46812,184
Average capital employed         
Capi t al  empl oyed at  begi nni ng of  peri od 177,965177,965177,965 202,899202,899202,899202,899 
Capi t al  empl oyed at  end of  peri od 153,610156,496177,181 177,965170,926197,676195,403 
Average capital employed 165,788167,231177,573 190,432186,913200,288199,151
Return on capital employed (%) -2.9% -11.3% 9.2% -10.7% -18.7% 2.7% 6.1% 
2024 2023
SEK million Q3 Q2 Q1  Q4 Q3 Q2 Q1 
Total equity 85,35582,467107,639 97,408105,435132,355125,832
Total assets 272,450278,486299,523 297,036306,349343,358345,658
Equity ratio (%) 31.3% 29.6% 35.9% 32.8% 34.4% 38.5% 36.4%
2024 2023
Isolated quarters, SEK million Q3 Q2 Q1  Q4 Q3 Q2 Q1 
Net income (loss) attributable to owners of the Parent C ompany 3,814-11,132 2,559 3,394-30,670 -686 1,516
Annualized 15,256-44,52810,236 13,576-122,680-2,744 6,064
Average stockholders' equity 
Stockholders' equity, beginning of period 83,840109,13798,673 106,791133,869127,396134,814 
Stockholders' equity, end of period 86,63083,840109,137 98,673106,791133,869127,396 
Average stockholders' equity 85,23596,489103,905 102,732120,330130,633131,105
Return on equity (%) 17.9%-46.1% 9.9% 13.2%-102.0% -2.1% 4.6%
2024 2023
Year to date, SEK million Jan-Sep Jan-Jun Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Net income (loss) attributable to owners of the Parent C ompany -4,759 -8,573 2,559 -26,446-29,840 830 1,516
Annualized -6,345-17,14610,236 -26,446-39,787 1,660 6,064
Average stockholders' equity 
Stockholders' equity, beginning of period 98,67398,67398,673 134,814134,814134,814134,814 
Stockholders' equity, end of period 86,63083,840109,137 98,673106,791133,869127,396 
Average stockholders' equity 92,65291,257103,905 116,744120,803134,342131,105
Return on equity (%) -6.8%-18.8% 9.9% -22.7%-32.9% 1.2% 4.6%
2024 2023

===== SIDA 41 =====

41 Ericsson  |  Third quarter report 2024. October 15, 2024. Alternative performance measures  
 
Free cash flow before M&A / Free cash flow after M&A / Free cash flow before M&A (% of net sales) Free cash flow before M&A: Cash flow from operating activities less net capital expenditures, other investments (excluding M&A) and repayment of lease liabilities.  Free cash flow after M&A: Cash flow from operating activities less net capital expenditures, other investments and repayment of  lease liabilities. Free cash flow before M&A (% of net sales): Free cash flow before M&A as a percentage of net sales. 
  
  1) Other investments is part of the line item Other investing activities in the Consolidated cash flow statement. The differences are movements in other interest-bearing assets and the cash flow hedge reserve gain, which are not to be part of the definition of Free cash flow.    
Is olated quarters ,  S E K  million Q3 Q2 Q1  Q4 Q3 Q2 Q1 
Cash f l ow  f rom operat i ng act i vi t i es 14,397 9,276 5,075 14,482 1,402 -2,882 -5,825
Net capital expenditures and other investments (excl. M&A) 
Inves tments  in property, plant and equipment -540 -699 -434 -720 -817 -806 -954 
Sales of  propert y, plant and equipment 36 42 24 37 51 42 33 
Product development -264 -327 -386 -551 -485 -562 -575 
Other investments ¹
⁾
-78 -39 -7 -1 0 -94 -2 
Repayment of lease liabilities -607 -658 -601 -783 -691 -690 -693
Free cash flow before M&A 12,944 7,595 3,671 12,464 -540 -4,992 -8,016 
Acquisitions/divestments of subs and other operations, net -62 -48 -106 -225 -160 -911 -844
Free cash flow after M&A 12,882 7,547 3,565 12,239 -700 -5,903 -8,860
Net sales 61,79459,84853,325 71,88164,47364,44462,553
Free cash flow before M&A (% of net sales) 20.9% 12.7% 6.9% 17.3% -0.8% -7.7%-12.8%
2024 2023
Year t o dat e, SEK million Jan-Sep Jan-Jun Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Cash f l ow  f rom operat i ng act i vi t i es 28,74814,351 5,075 7,177 -7,305 -8,707 -5,825
Net capital expenditures and other investments (excl. M&A) 
Inves tments  in property, plant and equipment -1,673 -1,133 -434 -3,297 -2,577 -1,760 -954 
Sales of  propert y, plant and equipment 102 66 24 163 126 75 33 
Product development -977 -713 -386 -2,173 -1,622 -1,137 -575 
Other investments ¹
⁾
-124 -46 -7 -97 -96 -96 -2 
Repayment of lease liabilities -1,866 -1,259 -601 -2,857 -2,074 -1,383 -693
Free cash flow before M&A 24,21011,266 3,671 -1,084-13,548-13,008 -8,016 
Acquisitions/divestments of subs and other operations, net -216 -154 -106 -2,140 -1,915 -1,755 -844
Free cash flow after M&A 23,99411,112 3,565 -3,224-15,463-14,763 -8,860
Net sales 174,967113,17353,325 263,351191,470126,99762,553
Free cash flow before M&A (% of net sales) 13.8% 10.0% 6.9% -0.4% -7.1%-10.2%-12.8%
2024 2023

===== SIDA 42 =====

42 Ericsson  |  Third quarter report 2024. October 15, 2024. Alternative performance measures  
 
Sales growth by segment adjusted for comparable units and currency 
 
   Sales growth by market area adjusted for comparable units and currency 
 
  Rolling four quarters of net sales by segment 
   
Is olated quarter,  year over year c hange,  perc ent Q3 Q2 Q1  Q4 Q3 Q2 Q1 
Networks -1% -11% -19% -23% -16% -13% -2%
Cl oud Sof t w are and Servi ces -1% 0% -2% -4% 5% 1% 5%
Enterprise -3% 0% 1% 7% 11% 20% 19%
Other -26% -5% -14% -27% -8% -18% 0%
Total -1% -7% -14% -17% -10% -9% 0%
2024 2023
Year t o dat e, year over year change, percent Jan-Sep Jan-Jun Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Networks -10% -15% -19% -15% -11% -8% -2%
Cl oud Sof t w are and Servi ces -1% -1% -2% 1% 4% 3% 5%
Enterprise -1% 1% 1% 11% 14% 20% 19%
Other -16% -10% -14% -14% -8% -8% 0%
Total -7% -10% -14% -10% -7% -5% 0%
2024 2023
Is olated quarter,  year over year c hange,  perc ent Q3 Q2 Q1  Q4 Q3 Q2 Q1 
North America 55% 14% -17% -43% -51% -42% -26%
Europe and Latin America 1% -3% -8% -12% -6% -3% -12%
Sout h East  Asia, Oceania and I ndia -43% -44% -37% 7% 74% 71% 132%
North East Asia -29% -3% -16% 11% -2% -32% -19%
Middle East and Africa -22% -8% 11% 4% 10% -4% -8%
Other 4% 7% 9% -24% 21% 38% 28%
Total -1% -7% -14% -17% -10% -9% 0%
2024 2023
Year t o dat e, year over year change, percent Jan-Sep Jan-Jun Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
North America 15% -3% -17% -41% -41% -35% -26%
Europe and Latin America -3% -5% -8% -9% -7% -8% -12%
Sout h East  Asia, Oceania and I ndia -41% -41% -37% 61% 88% 97% 132%
North East Asia -16% -9% -16% -9% -19% -26% -19%
Middle East and Africa -9% 0% 11% 1% 0% -6% -8%
Other 6% 8% 9% 3% 27% 33% 28%
Total -7% -10% -14% -10% -7% -5% 0%
2024 2023
Rolling four quarters, SEK million Q3 Q2 Q1  Q4 Q3 Q2 Q1 
Networks 156,408157,929162,690 171,442185,070191,680195,223
Cl oud Sof t w are and Servi ces 62,73663,34763,275 63,630 64,282 62,93161,837
Enterprise 25,47125,82525,720 25,745 25,361 23,66918,993
Other 2,233 2,426 2,438 2,534 2,737 2,737 2,985
Total 246,848249,527254,123 263,351 277,450 281,017279,038
2024 2023

===== SIDA 43 =====

43 Ericsson  |  Third quarter report 2024. October 15, 2024. Alternative performance measures  
 
Gross margin by segment by quarter 
 
  EBIT margin by segment by quarter 
 
   
Is olated quarters ,  as  perc entage of net s ales Q3 Q2 Q1  Q4 Q3 Q2 Q1 
Networks 48.3% 45.5% 44.0% 41.4% 38.9% 38.4% 39.7%
Cl oud Sof t w are and Servi ces 37.0% 35.6% 37.1% 36.7% 35.3% 32.7% 33.4%
Enterprise 52.3% 51.0% 48.0% 44.3% 48.7% 46.3% 47.4%
Other 1.8% -8.1% 18.2% -26.0%-23.6%-22.2% -2.6%
Total 45.6% 43.1% 42.5% 39.8% 38.4% 37.4% 38.6%
2024 2023
Year t o dat e, as percent age of  net  sales Jan-Sep Jan-Jun Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Networks 46.1% 44.8% 44.0% 39.6% 39.0% 39.1% 39.7%
Cl oud Sof t w are and Servi ces 36.5% 36.3% 37.1% 34.7% 33.8% 33.0% 33.4%
Enterprise 50.5% 49.6% 48.0% 46.7% 47.5% 46.8% 47.4%
Other 4.7% 6.1% 18.2% -18.2%-15.6%-11.0% -2.6%
Total 43.8% 42.8% 42.5% 38.6% 38.1% 38.0% 38.6%
2024 2023
Is olated quarters ,  as  perc entage of net s ales Q3 Q2 Q1  Q4 Q3 Q2 Q1 
Networks 18.7% 12.6% 12.3% 13.6% 11.1% 6.2% 14.2%
Cl oud Sof t w are and Servi ces -3.0% -4.8% -2.8% 9.4% 0.6% -7.9% -7.0%
Enterprise -19.0%-268.7%-26.5% -24.5%-499.1%-26.3%-28.6%
Other -14.6%-23.2%317.5% -72.9%-45.6%-10.8%-46.3%
Total 9.3% -22. 6% 7.7% 8.1% -44. 8% -0. 5% 4.9%
2024 2023
Year t o dat e, as percent age of  net  sales Jan-Sep Jan-Jun Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Networks 14.7% 12.5% 12.3% 11.3% 10.5% 10.2% 14.2%
Cl oud Sof t w are and Servi ces -3.6% -3.9% -2.8% -0.3% -4.7% -7.5% -7.0%
Enterprise -107.6%-152.6%-26.5% -148.9%-192.6%-27.4%-28.6%
Other 105.7%161.1%317.5% -45.5%-36.4%-31.1%-46.3%
Total -2. 1% -8. 3% 7.7% -7. 7% -13. 7% 2.2% 4.9%
2024 2023

===== SIDA 44 =====

44 Ericsson  |  Third quarter report 2024. October 15, 2024. Alternative performance measures  
 
EBITA and EBITA margin by segment by quarter 
 
 
 
    
Isolated quarters, SEK million Q3 Q2 Q1  Q4 Q3 Q2 Q1 
Networks 7,536 4,771 4,179 6,135 4,651 2,678 6,042
C loud Software and Services -436 -721 -355 1,846 96 -1,190 -929
Enterprise -823 -1,508 -820 -830 -600 -891 -945
Ot her -74 -116 1,889 -457 -319 -55 -320
Total 6,203 2,426 4,893 6,694 3,828 542 3,848
2024 2023
Is olated quarters ,  as  perc entage of net s ales Q3 Q2 Q1  Q4 Q3 Q2 Q1 
Networks 18.8% 12.7% 12.4% 13.6% 11.2% 6.3% 14.2%
Cl oud Sof t w are and Servi ces -2.9% -4.7% -2.7% 9.4% 0.6% -7.9% -6.9%
Enterprise -13.0%-23.3%-13.7% -12.4% -9.0%-14.0%-15.8%
Other -14.6%-23.0%317.5% -72.9%-45.6%-10.6%-46.3%
Total 10.0% 4.1% 9.2% 9.3% 5.9% 0.8% 6.2%
2024 2023
Year to date, SEK million Jan-Sep Jan-Jun Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Networks 16,486 8,950 4,179 19,50613,371 8,720 6,042
C loud Software and Services -1,512 -1,076 -355 -177 -2,023 -2,119 -929
Enterprise -3,151 -2,328 -820 -3,266 -2,436 -1,836 -945
Ot her 1,699 1,773 1,889 -1,151 -694 -375 -320
Total 13,522 7,319 4,893 14,912 8,218 4,390 3,848
2024 2023
Year t o dat e, as percent age of  net  sales Jan-Sep Jan-Jun Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Networks 14.8% 12.5% 12.4% 11.4% 10.6% 10.3% 14.2%
Cl oud Sof t w are and Servi ces -3.5% -3.8% -2.7% -0.3% -4.6% -7.4% -6.9%
Enterprise -16.8%-18.7%-13.7% -12.7%-12.8%-14.8%-15.8%
Other 105.8%161.2%317.5% -45.4%-36.4%-31.0%-46.3%
Total 7.7% 6.5% 9.2% 5.7% 4.3% 3.5% 6.2%
2024 2023

===== SIDA 45 =====

45 Ericsson  |  Third quarter report 2024. October 15, 2024. Alternative performance measures  
 
Restructuring charges by function 
 
  Restructuring charges by segment 
 
   
Isolated quarters, SEK million Q3 Q2 Q1  Q4 Q3 Q2 Q1 
C ost of sales -424 -466 -122 -956 -548 -552 -746
Research and development expenses -966 -805 10 -484 -197 -1,659 -91
Selling and administrative expenses -163 -357 -93 -80 -143 -922 -143
Total -1, 553 -1, 628 -205 -1, 520 -888 -3, 133 -980
2024 2023
Year to date, SEK million Jan-Sep Jan-Jun Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
C ost of sales -1,012 -588 -122 -2,802 -1,846 -1,298 -746
Research and development expenses -1,761 -795 10 -2,431 -1,947 -1,750 -91
Selling and administrative expenses -613 -450 -93 -1,288 -1,208 -1,065 -143
Total -3, 386 -1, 833 -205 -6, 521 -5, 001 -4, 113 -980
2024 2023
Isolated quarters, SEK million Q3 Q2 Q1  Q4 Q3 Q2 Q1 
Networks -585 -481 -95 -1,292 -564 -2,177 -404 
of	which	cost	of	sales -163 -214 -68 -816 -408 -376 -367 
of	which	operating	expenses -422 -267 -27 -476 -156 -1,801 -37
C loud Software and Services -863 -816 -60 -183 -335 -906 -500 
of	which	cost	of	sales -243 -246 -49 -119 -143 -177 -367 
of	which	operating	expenses -620 -570 -11 -64 -192 -729 -133
Enterprise -38 -285 -38 -27 -5 -52 -89 
of	which	cost	of	sales -1 -3 -5 0 -3 -1 -12 
of	which	operating	expenses -37 -282 -33 -27 -2 -51 -77
Ot her -67 -46 -12 -18 16 2 13 
of	which	cost	of	sales -17 -3 0 -21 6 2 0 
of	which	operating	expenses -50 -43 -12 3 10 0 13
Total -1, 553 -1, 628 -205 -1, 520 -888 -3, 133 -980
2024 2023
Year to date, SEK million Jan-Sep Jan-Jun Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Networks -1,161 -576 -95 -4,437 -3,145 -2,581 -404 
of	which	cost	of	sales -445 -282 -68 -1,967 -1,151 -743 -367 
of	which	operating	expenses -716 -294 -27 -2,470 -1,994 -1,838 -37
C loud Software and Services -1,739 -876 -60 -1,924 -1,741 -1,406 -500 
of	which	cost	of	sales -538 -295 -49 -806 -687 -544 -367 
of	which	operating	expenses -1,201 -581 -11 -1,118 -1,054 -862 -133
Enterprise -361 -323 -38 -173 -146 -141 -89 
of	which	cost	of	sales -9 -8 -5 -16 -16 -13 -12 
of	which	operating	expenses -352 -315 -33 -157 -130 -128 -77
Ot her -125 -58 -12 13 31 15 13 
of	which	cost	of	sales -20 -3 0 -13 8 2 0 
of	which	operating	expenses -105 -55 -12 26 23 13 13
Total -3, 386 -1, 833 -205 -6, 521 -5, 001 -4, 113 -980
2024 2023

===== SIDA 46 =====

46 Ericsson  |  Third quarter report 2024. October 15, 2024. Alternative performance measures  
 
Adjusted gross income and gross margin by segment 
 
 
 
   
Isolated quarters, SEK million Q3 Q2 Q1  Q4 Q3 Q2 Q1 
Networks 19,49517,35314,919 19,44316,55416,69417,236
C loud Software and Services 5,780 5,653 4,883 7,293 5,637 5,121 4,843
Enterprise 3,308 3,313 2,870 2,968 3,256 2,955 2,853
Ot her 26 -38 108 -143 -171 -117 -18
Total 28,609 26,281 22,780 29,561 25,276 24,653 24,914
2024 2023
Isolated quarters, as percentage of net sales Q3 Q2 Q1  Q4 Q3 Q2 Q1 
Networks 48.7% 46.1% 44.3% 43.2% 39.9% 39.3% 40.6%
C loud Software and Services 38.7% 37.2% 37.4% 37.3% 36.2% 33.9% 36.1%
Enterprise 52.4% 51.1% 48.1% 44.3% 48.8% 46.3% 47.6%
Ot her 5.1% -7.5% 18.2% -22.8%-24.5%-22.6% -2.6%
Total 46.3% 43.9% 42.7% 41.1% 39.2% 38.3% 39.8%
2024 2023
Year to date, SEK million Jan-Sep Jan-Jun Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Networks 51,76732,27214,919 69,92750,48433,93017,236
C loud Software and Services 16,31610,536 4,883 22,89415,601 9,964 4,843
Enterprise 9,491 6,183 2,870 12,032 9,064 5,808 2,853
Ot her 96 70 108 -449 -306 -135 -18
Total 77,670 49,061 22,780 104,404 74,843 49,567 24,914
2024 2023
Year t o dat e, as percent age of  net  sales Jan-Sep Jan-Jun Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Networks 46.5% 45.2% 44.3% 40.8% 39.9% 40.0% 40.6%
Cl oud Sof t w are and Servi ces 37.8% 37.3% 37.4% 36.0% 35.4% 35.0% 36.1%
Enterprise 50.6% 49.6% 48.1% 46.7% 47.6% 46.9% 47.6%
Other 6.0% 6.4% 18.2% -17.7%-16.0%-11.2% -2.6%
Total 44.4% 43.4% 42.7% 39.6% 39.1% 39.0% 39.8%
2024 2023

===== SIDA 47 =====

47 Ericsson  |  Third quarter report 2024. October 15, 2024. Alternative performance measures  
 
Adjusted EBIT (loss) and EBIT margin by segment 
 
 
 
  Rolling four quarters of adjusted EBITA margin by segment (%) 
    
Is olated quarters ,  S E K  million Q3 Q2 Q1  Q4 Q3 Q2 Q1 
Networks 8,077 5,231 4,251 7,404 5,191 4,800 6,424
Cl oud Sof t w are and Servi ces 420 88 -303 2,019 421 -294 -442
Enterprise -1,163-17,139 -1,544 -1,616-33,297 -1,627 -1,623
Other -7 -71 1,901 -439 -335 -58 -333
Total 7,327 -11, 891 4,305 7,368 -28, 020 2,821 4,026
2024 2023
Is olated quarters ,  as  perc entage of net s ales Q3 Q2 Q1  Q4 Q3 Q2 Q1 
Networks 20.2% 13.9% 12.6% 16.5% 12.5% 11.3% 15.1%
Cl oud Sof t w are and Servi ces 2.8% 0.6% -2.3% 10.3% 2.7% -1.9% -3.3%
Enterprise -18.4%-264.3%-25.9% -24.1%-499.0%-25.5%-27.1%
Other -1.4%-14.1%319.5% -70.0%-47.9%-11.2%-48.2%
Total 11.9% -19. 9% 8.1% 10.3% -43. 5% 4.4% 6.4%
2024 2023
Year t o dat e, SEK million Jan-Sep Jan-Jun Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Networks 17,559 9,482 4,251 23,81916,41511,224 6,424
Cl oud Sof t w are and Servi ces 205 -215 -303 1,704 -315 -736 -442
Enterprise -19,846-18,683 -1,544 -38,163-36,547 -3,250 -1,623
Other 1,823 1,830 1,901 -1,165 -726 -391 -333
Total -259 -7, 586 4,305 -13, 805-21, 173 6,847 4,026
2024 2023
Year t o dat e, as percent age of  net  sales Jan-Sep Jan-Jun Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Networks 15.8% 13.3% 12.6% 13.9% 13.0% 13.2% 15.1%
Cl oud Sof t w are and Servi ces 0.5% -0.8% -2.3% 2.7% -0.7% -2.6% -3.3%
Enterprise -105.7%-150.0%-25.9% -148.2%-191.9%-26.3%-27.1%
Other 113.5%166.4%319.5% -46.0%-38.1%-32.4%-48.2%
Total -0. 1% -6. 7% 8.1% -5. 2% -11. 1% 5.4% 6.4%
2024 2023
Rolling four quarters, as percentage of net sales Q3 Q2 Q1  Q4 Q3 Q2 Q1 
Networks 16.0% 14.0% 13.4% 14.0% 15.7% 17.5% 19.3%
Cl oud Sof t w are and Servi ces 3.6% 3.6% 3.0% 2.7% 0.7% -1.1% -1.8%
Enterprise -14.1%-13.2%-11.7% -12.0% -12.1% -14.7%-16.4%
Other 62.0% 43.6% 43.9% -45.9%-146.4%-142.7%-136.5%
Total 10.2% 8.8% 8.5% 8.1% 8.1% 9.1% 10.5%
2024 2023

===== SIDA 48 =====

48 Ericsson  |  Third quarter report 2024. October 15, 2024. Alternative performance measures  
  
Adjusted EBITA and EBITA margin by segment 
 
 
 
  Other ratios 
 
 
Isolated quarters, SEK million Q3 Q2 Q1  Q4 Q3 Q2 Q1 
Networks 8,121 5,252 4,274 7,427 5,215 4,855 6,446
C loud Software and Services 427 95 -295 2,029 431 -284 -429
Enterprise -785 -1,223 -782 -803 -595 -839 -856
Ot her -7 -70 1,901 -439 -335 -57 -333
Total 7,756 4,054 5,098 8,214 4,716 3,675 4,828
2024 2023
Is olated quarters ,  as  perc entage of net s ales Q3 Q2 Q1  Q4 Q3 Q2 Q1 
Networks 20.3% 13.9% 12.7% 16.5% 12.6% 11.4% 15.2%
Cl oud Sof t w are and Servi ces 2.9% 0.6% -2.3% 10.4% 2.8% -1.9% -3.2%
Enterprise -12.4%-18.9%-13.1% -12.0% -8.9%-13.2%-14.3%
Other -1.4%-13.9%319.5% -70.0%-47.9%-11.0%-48.2%
Total 12.6% 6.8% 9.6% 11.4% 7.3% 5.7% 7.7%
2024 2023
Year to date, SEK million Jan-Sep Jan-Jun Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Networks 17,647 9,526 4,274 23,94316,51611,301 6,446
C loud Software and Services 227 -200 -295 1,747 -282 -713 -429
Enterprise -2,790 -2,005 -782 -3,093 -2,290 -1,695 -856
Ot her 1,824 1,831 1,901 -1,164 -725 -390 -333
Total 16,908 9,152 5,098 21,433 13,219 8,503 4,828
2024 2023
Year t o dat e, as percent age of  net  sales Jan-Sep Jan-Jun Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Networks 15.8% 13.3% 12.7% 14.0% 13.1% 13.3% 15.2%
Cl oud Sof t w are and Servi ces 0.5% -0.7% -2.3% 2.7% -0.6% -2.5% -3.2%
Enterprise -14.9%-16.1%-13.1% -12.0%-12.0%-13.7%-14.3%
Other 113.6%166.5%319.5% -45.9%-38.0%-32.3%-48.2%
Total 9.7% 8.1% 9.6% 8.1% 6.9% 6.7% 7.7%
2024 2023
2024 2023 2024 2023
Days sales outstanding - - 66 72 
Inventory turnover days 81 106 91 104 
Payable days 71 76 75 80 
Q3 Jan-Sep