- President and CEO summarizes Ericsson's Networked
Society strategy and reviews 2015 financial performance
- Sustainability & Corporate Responsibility
Report shows 20 million people directly impacted by Ericsson's
Technology for Good initiatives
- Ericsson leading the way toward 5G with 21
customer contracts, test-bed leadership and industry and academia
research cooperation
Speaking at the Ericsson (NASDAQ: ERIC) Annual
General Meeting (AGM), President and CEO Hans Vestberg summarized
the company's Networked Society strategy and reviewed its financial
performance in 2015.
NETWORKED SOCIETY
STRATEGY
Vestberg explained that broadband, mobility and
cloud are reshaping value chains, digitalizing business models and
creating new possibilities in every industry. Ericsson's strategy
aims to secure the company's relevance as this transformation
accelerates.
Vestberg said: "Just like our industry and our
customers, Ericsson is on a transformation journey. Our Networked
Society strategy requires us to excel in our core business and
establish a leadership position in targeted areas."
"By executing on this strategy, we will continue
to lead our industry and create new opportunities for growth."
Ericsson's core business consists of radio, core
and transmission networks, and telecommunications services.
Targeted areas include Cloud, IP networks, TV & Media, OSS/BSS,
and Industry & Society, which represent new customer segments
outside the telecommunications operator domain.
In 2015, sales in targeted areas grew 20 percent
year-on-year, accounting for 18 percent of Ericsson's total sales
in the year.
FINANCIAL PERFORMANCE
Overall, Ericsson's net sales increased 8 percent
to SEK 246.9 billion. Operating income rose 30 percent to SEK 21.8
billion, while cash flow was up 10 percent to SEK 20.6 billion.
CORPORATE RESPONSIBILITY
In conjunction with the AGM, Ericsson published
its 23rd annual
Sustainability and Corporate Responsibility Report, which details
the company's performance in 2015 in three areas: responsible
business; energy, environment and climate change; and communication
for all.
The report shows that by the end of 2015, 20
million people had been directly impacted by Ericsson's Technology
for Good initiatives, such as the Connect To Learn program that
uses ICT to improve access to quality secondary education for over
76,000 students in 22 countries.
It also highlights how ICT can accelerate
achievement of the United Nations Sustainable Development Goals -
for example, mobile money services can reduce inequalities and
enable financial inclusion.
Elaine Weidman-Grunewald, Vice President,
Sustainability and Corporate Responsibility, Ericsson, said: "By
embedding sustainability and corporate responsibility into our
business, we have a strong platform for progress and positive
impacts. We will continue to work in public-private partnership and
advocate Technology for Good to drive change for the better."
LEADING THE WAY TOWARD 5G
Sara Mazur, Head of Ericsson Research, highlighted
the role of innovation as the foundation of Ericsson's technology
and services leadership. In 2015, the company invested SEK 32.8
billion in research and development, and today has an
industry-leading portfolio of 39,000 patents.
She explained that Ericsson is leading the way
toward 5G - the company has 21 contracts with operators around the
world, a 5G test-bed that demonstrates speeds over 25 Gbps, and
research partnerships that combine Ericsson's capabilities with the
strengths and insights of customers, industries and academia.
Mazur also presented Ericsson's Inventor of the
Year awards. The 2015 winners were John Diachina, Senior Engineer
in Architecture and Protocol Design, Karl Norrman, Master
Researcher in Security and Magnus Stattin, Master Researcher in
Wireless Access Networks, who together hold more than 250
patents.
CONCLUDING COMMENTS
Vestberg closed the presentation with three
priorities for 2016:
-
Core business - while
market conditions are challenging in certain parts of the world,
Ericsson will continue to capture business opportunities as more
markets shift to 4G. At the same time, the company will extend its
technology leadership in the emerging 5G market.
-
Targeted areas - after a
period of investing to create growth, Ericsson needs to improve
earnings in targeted areas. This will involve a stronger focus on
software sales and recurring business as a complement to the
already strong Professional Services business.
-
Cost and efficiency -
Ericsson is on target to achieve annual net savings of SEK 9
billion during 2017, and will take all necessary actions to remain
competitive in a fast-changing ICT market.
Vestberg concluded: "ICT opens up new
possibilities for people, business and society - and the pace of
change will never be as slow as it is today. This year, we
celebrate Ericsson's 140th anniversary,
and we are transforming in order to continue leading the industry
and to create sustainable value for our shareholders, customers,
employees and society."
NOTES TO EDITORS
For media kits, backgrounders and high-resolution
photos, please visit www.ericsson.com/press
Ericsson is the driving force
behind the Networked Society - a world leader in communications
technology and services. Our long-term relationships with every
major telecom operator in the world allow people, business and
society to fulfill their potential and create a more sustainable
future.
Our services, software and
infrastructure - especially in mobility, broadband and the
cloud - are enabling the telecom industry and
other sectors to do better business, increase efficiency, improve
the user experience and capture new opportunities.
With approximately 115,000
professionals and customers in 180 countries, we combine global scale with technology and services
leadership. We support networks that connect more than 2.5 billion
subscribers. Forty percent of the world's mobile traffic is carried
over Ericsson networks. And our investments in research and
development ensure that our solutions - and our customers - stay in
front.
Founded in 1876, Ericsson has its
headquarters in Stockholm, Sweden. Net sales in 2015 were SEK 246.9 billion (USD 29.4 billion). Ericsson is
listed on NASDAQ OMX stock exchange in Stockholm and the NASDAQ in
New York.
www.ericsson.com
www.ericsson.com/news
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www.youtube.com/ericsson
FOR FURTHER INFORMATION, PLEASE CONTACT
Ericsson Corporate Communications
Phone: +46 10 719 69 92
E-mail: media.relations@ericsson.com
Ericsson Investor Relations
Phone: +46 10 719 00 00
E-mail: investor.relations@ericsson.com
Ericsson CEO speech_AGM 2016_April
13
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Ericsson via Globenewswire
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