Ericsson's investor day 2012

Ericsson's investor day 2012 
STOCKHOLM, SWEDEN -- (Marketwire) -- 11/06/12 --    * Management
outlines list of ongoing activities to improve profitability 
* The fundamentals for longer-term positive development for the
industry     remain solid. Ericsson continues to invest in its main
competitive assets -     technology leadership, services leadership
and global scale in order to     become a leading ICT solutions
provider in telecoms 
* Ericsson estimates the overall addressable equipment market will
show a CAGR 
of 3-5% 2012-2015. Telecom services expected to show
a CAGR of 5-7% and     support solutions expected to show a CAGR of
Today, Ericsson (NASDAQ: ERIC) will hold its annual Investor Day in
President and CEO Hans Vestberg will elaborate on how
Ericsson will leverage its current assets - technology leadership,
services leadership, global scale - to
move from being a leading
mobile infrastructure vendor to become a leading Information and
Communications Technology solutions provider in telecoms. 
"This development will naturally imply a future business mix for
Ericsson with
more recurring software and services revenues. However,
hardware will always be part of the mix and a key differentiator for
Ericsson," says Hans Vestberg. 
Ericsson is currently in a phase with a higher share of coverage than
projects due to a high proportion of hardware being rolled
out. At the Investor
Day Management will reiterate that this mix is
expected to prevail short-term but that the negative impact from the
network modernization projects in Europe will start to gradually
decline end 2012. Hans Vestberg will point to the fact
that the
company presently has a selective approach to market share
and a strong focus on commercial management. Management
will also discuss some
uncertainties going forward such as
macroeconomic factors, the competitive situation and operator
A market outlook for 2012-2015 will be presented. Ericsson estimates
that the
total network equipment market will show a compound annual
growth rate (CAGR) of 3-5%.  In Ericsson's key equipment market
segments - radio, IP and transport,
core - the CAGR is expected to be
4-6%. In radio a CAGR of 2-4% is expected, in IP and transport a CAGR
of 6-8% and in core a
 CAGR of 0-2%. Ericsson expects the market for
telecom services to show a CAGR of 5-7% in the same time period.
market for support solutions is forecasted to show a CAGR of
9-11%, including a CAGR of 12-14% for the media market. The market for
OSS/BSS software and services is expected to show a CAGR of 5-7%. 
Ericsson has a leading market position in four out of its six
businesses. In
mobile equipment, Ericsson increased its market share
to 38% in 2011. In the
three key equipment market segments, radio, IP
and transport, core, the company
has an aggregated market position of
27% which makes Ericsson the largest player. In the fragmented
telecom services market Ericsson increased its market
share 2011 from
11% to 12%. The company also has a leading market position
During the Investor Day, Hans Vestberg will elaborate on strategies
to deliver
profitable growth.  Areas with portfolio momentum expected
to contribute to top-line growth are mobile broadband, managed
services and OSS/BSS. He will also
describe how the company is
expanding beyond its core business in order to capture value from
adjacent industries, while operators continue to be the
customer segment. 
Jan Frykhammar, CFO and Executive Vice President, will elaborate on
how Ericsson
intends to improve capital efficiency. The working
capital targets for the company will remain unchanged with DSO of
less than 90 days, payable days of
more than 60 days and Inventory
turnover of less than 65 days. 
Jan Frykhammar will reiterate that the company will continue to
proactively identify and execute on additional efficiency gains and
cost reductions in order
to improve profitability. He will also
outline a list of profit improvement areas to reach the compound
operating income growth of 5-15% required in the
Performance Stock Plan. 
Johan Wibergh, head of business unit Networks and Executive Vice
President, will
point out key contributors for the segment to return
to double digit operating
margin. He will mention a number of
examples of these contributors including
Ericsson's ability to gain a
price premium through its technology leadership,
business mix
improvements, scale and agile software development. Rima
head of business unit CDMA Mobile Systems, will elaborate on
how all Ericsson's
CDMA customers have successfully evolved into
Ericsson's LTE solutions. Ericsson's acquisition of Nortel has been
successful and focus for the CDMA operation is now on maximizing
business contribution as well as to excel in life
cycle and cost
Magnus Mandersson, head of business unit Global Services and
Executive Vice President, will describe the company's services
journey to drive the transformation to becoming a leading ICT
solutions provider in telecom. Mandersson will outline the continued
focus on industrialization of services,
leveraging global scale and
how the company drives services innovation for continued growth. 
Per Borgklint, head of business unit Support Solutions, will discuss
how the
segment Support Solutions showed a trend shift Q212 and Q312
when it reported
profit. He will describe the strategy for Support
Solutions with focus on OSS,
BSS, Media and m-commerce. The
presentation will also focus on the characteristics of the business
where a subscription based model for recurrent
software revenues is
being introduced. 
Ulf Ewaldsson, Chief Technology Officer, will discuss key
technologies for evolving the networks, including heterogeneous
networks, 4(th) generation IP,
cloud and software defined networks as
well as OSS/BSS and real-time analytics. 
At the end of the day, Hans Vestberg will conclude that the
fundamentals for
longer-term positive development for the industry
remain solid. He will stress
how increased smartphone penetration and
consumers demand for having data connectivity around the clock is
driving increased complexity in the networks.
Until now, the major
part of the investments in the telecom industry has been
directed to
devices and applications. Going forward, Ericsson expects the
industry to re-balance investments towards optimizing network
"Mobility is becoming even more relevant in the networked society,
driving the
demand for our offering," Hans Vestberg will conclude. "We
have a clear long-term objective to increase our value share from the
networked society through
becoming a leading ICT solutions provider
in telecom. In the short-term, we aim
to improve value creation by
focusing on profitable growth." 
Ericsson discloses the information
provided herein pursuant to the Securities
Markets Act and/or the
Financial Instruments Trading Act. The information was
submitted for
publication on November 6, 2012 at 2012. 
Ericsson's investor day
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Source: Ericsson via Thomson Reuters ONE 
Ericsson Corporate Public & Media Relations
Phone: +46 10 719 69 92
Ericsson Investor Relations
Phone: +46 10 719 00 00
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