Sony Digital Rapids Pixel Power calrec Sony

Ericsson Capital Markets Day 2018

08/11/2018

On November 8, Ericsson (NASDAQ: ERIC) will hold its Capital Markets Day 2018 in New York. The company will give an overview of its turnaround, strategy, and plans for future growth as well as details about its business segments and market trends.

Over the past seven quarters, focus has been on simplifying and stabilizing the business, including stopping the topline decline. Accelerated cost reduction activities and contract reviews have been implemented. There is good traction in the ongoing portfolio review. Moreover, the company's increased investments in R&D for future growth combined with efficient cost control has proven successful with improved profitability as a result.

B rje Ekholm, President and CEO, says: With our focused strategy we have created a strong foundation of stability and profitability. Our strengthened portfolio and competitive cost structure have enabled us to grow in the third quarter 2018, for the first time since 2014, on a constant currency basis, despite headwind from exited contracts and businesses. As the industry moves to 5G and IoT we are now preparing to take the next step to generate profitable growth in a selective and disciplined way.

Group profitability target and net sales ambition 2020

The ambition for net sales is increased to SEK 210 220 (190-200) b. by 2020, mainly driven by Networks. Of the increase in the sales ambition, SEK 5 b. is explained by currency and SEK 2 b. is explained by the inclusion of Red Bee Media, previously not included in the sales ambition.

In Networks, increased investments in R&D for technology and cost leadership will continue. Growth is expected to come from a stronger market, selective market shares gains, and expansion of the product portfolio into close adjacent markets. In 2019, investments in 5G trials will continue. The operating margin target for 2020 is unchanged at 15% 17%.

In Digital Services, the top priority is returning to profitability. Continued cost reductions and efficiency improvements will contribute to reaching the target of a low single digit operating margin by 2020. Investments in a 5G-ready and cloud-native product portfolio continue. There is a strong market demand for the new portfolio driven by virtualization and 5G acceleration. At the same time, the legacy product sales decline faster than the new portfolio uptake. The lower net sales ambition for the segment is fully explained by the internal transfer of a business line to Managed Services.

In Managed Services, where a turnaround has been completed, focus is shifting to further improving profitability through investments in automation and Artificial Intelligence. Consequently, the operating margin target 2020 is increased to 5% 8%.

In Segment Emerging Business and Other focus is on establishing new businesses for organic growth. The strategy is to capture new revenues through rapid and disciplined innovation building on 5G and IoT. For the current business portfolio, the target of break-even by 2020 is unchanged. However, in case of attractive new business opportunities, we may decide to scale up investments. We will manage emerging business initiatives for growth, based on positive NPV case-by-case and within 2022 Group targets.

Long-term profitability

As previously communicated the long-term profitability target for the Group is an operating margin of more than 12% excluding restructuring. While the target level remains unchanged, the timing is now set to 2022 at the latest. Operating margin targets per segment for 2022 are found in the table below:

Financial targets and sales ambitions

(CMD 2017 numbers in brackets, when changed)

SEK b. Networks Digital Services Managed Services Emerging Business and Other Group

2020 Net sales ambition 141 145(128 - 134) 41 - 43 23 - 25 5 - 7 210 - 220

2020 Operating margins 15% - 17% Low single digit 5% - 8%(4% - 6%) Break-even(current business) >10%

Operating margin by 2022, at the latest 15% - 17% 10% - 12% 8% - 10% - >12%

Note: All financial targets are based on USD/SEK at 8.70. Operating margin targets are all excluding restructuring charges.

Market development

Ericsson's total addressable market is expected to grow between 2% 3% CAGR from 2018 to 2022, broken down as follows: Radio Access Network 1% 3%, Managed Services 2% - 4%, and Digital Services 1% 4%.

Planning assumptions for all key segments are based on external sources.

Planning assumptions Q4 2018

The planning assumptions as stated in the third quarter report for 2018 remain. However, following the announcement to accelerate edge computing through a partnership with Limelight, we plan to reset Ericsson EdgeGravity, formerly known as Ericsson UDN, allowing for a leaner set-up of content delivery. These actions are expected to generate annual cost savings of SEK 0.2 b. starting from 2019. Related to this, Q4 2018 will be negatively impacted by SEK -0.5 b., of which SEK -0.2 b. of restructuring charges impacts cashflow.

Speakers and details of the event

President and CEO B rje Ekholm and CFO Carl Mellander, will be joined by members of the companys Executive Team. The speakers include Erik Ekudden, CTO, Fredrik Jejdling, Executive Vice President and Head of Business Area Networks, Jan Karlsson, Head of Business Area Digital Services, Peter Laurin, Head of Business Area Managed Services, and sa Tamsons, Head of Business Area Technologies and New Businesses, Niklas Heuveldop, Head of Market Area North America, Arun Bansal, Head of Market Area Europe and Latin America, and Chris Houghton, Head of Market Area North East Asia.

Ericssons Capital Markets Day event can be accessed via the Ericsson website https://www.ericsson.com/en/investors/events-and-presentations/CMD2018. Presentation materials can also be downloaded from the website once the webcast has started.

NOTES
LINK: https://www.ericsson.com/en/press-releases/2018/11/ericsson-capital-ma...
See more stories from ericsson

Most recent headlines

24/03/2019

welcome to the team jackson goldstone

pros Mar 24, 2019 We are stoked to welcome freeride mountain biker Jackson Goldston to the GoPro Team! Actually we are stoked to welcome the future of fr...

24/03/2019

Sunwolves chief believes axing will be a huge blow to Asian rugby

The axing of Japan's Sunwolves from Super Rugby will damage efforts to promote the sport in Asia, the team's chief executive said Saturday. The Sunwolv...

24/03/2019

A new law could soon see South Africans jailed for lying on their CV

The National Qualifications Amendment Bill is not here to play, ladies and gentlemen. The adjustment to the existing legislation comes with some pretty stern up...

24/03/2019

South Africa vs Sri Lanka: Proteas look to end season on a high

Sri Lanka won the toss and sent South Africa in to bat in the third and final Twenty20 international at the Wanderers Stadium on Sunday. Sri Lankan captain Las...

24/03/2019

Turns out Ed Sheeran is now a big Springboks and Proteas fan [photos]

That's the stuff! Ed Sheeran performed for the first time during the South African leg of his Divide tour on Saturday night and brought the house down with ...

24/03/2019

Blackmagic Design gana tres premios iF Design

Blackmagic Design gana tres premios iF Design Los productos reconocidos entre m s de 6.000 proyectos de 55 pa ses fueron el modelo Blackmagic Pocket Cinema Cam...

24/03/2019

La ltima hora del Plan Nacional, en el 5G Forum Mlaga

La ltima hora del Plan Nacional, en el 5G Forum M laga Antonio Fern ndez-Paniagua, del Ministerio de Econom a y Empresa,acudir a M laga para explicar la lti...

24/03/2019

Rethink Technology Research expected to reach SVOD traditional television in just three years

Rethink Technology Research expected to reach SVOD traditional television in jus...

24/03/2019

The new set of virtual reality Movistar + employs Fujinon HD lenses

The new set of virtual reality Movistar employs Fujinon HD lenses El estudio dotado con tecnolog a de Vizrt, c maras de Sony (con pticas Fujinon) y una Camb...

24/03/2019

PlayBox Neo multimedia show cloud at any scale with the launch at NAB 2019 Cloud2TV

PlayBox Neo multimedia show cloud at any scale with the launch at NAB 2019 Cloud...

24/03/2019

PMD-750: the new wireless microphone system Marantz for DSLR cameras

PMD-750: the new wireless microphone system Marantz for DSLR cameras El nuevo sistema PMD-750 est compuesto por un transmisor de petaca, un micr fono lavalier...

24/03/2019

The Film Academy explores the role of the new television series

The Film Academy explores the role of the new television series Profesionales del cine y las series debaten en la instituci n sobre los formatos y el nuevo con...

24/03/2019

Crystal Vision will show at NAB a flexible IP platform and the Elimination of delay in SDI

Crystal Vision will show at NAB a flexible IP platform and the Elimination of de...

24/03/2019

NextRadioTV implements a comprehensive solution of routing Riedel MediorNet

NextRadioTV implements a comprehensive solution of routing Riedel MediorNet El sistema MediorNet de 204 nodos ha sido instalado en las nuevas instalaciones de ...

24/03/2019

The Spanish, great film nominated in the Platinum Awards

The Spanish, great film nominated in the Platinum Awards Campeones', la ltima pel cula de Javier Fesser, cuenta con 5 nominaciones, entre ellas Mejor Pel...

24/03/2019

Atresmedia film presents The summer we live

Atresmedia film presents The summer we live Dirigida por Carlos Sedes, la pel cula comenzar su rodaje en el mes de agosto y tendr como escenario principal Je...

24/03/2019

Maurizio Carlotti retires after more than forty years of successful professional career

Maurizio Carlotti retires after more than forty years of successful professional...

24/03/2019

WTT 2019 tennis streaming world tournament will be held with the JVC Mobile Studio

WTT 2019 tennis streaming world tournament will be held with the JVC Mobile Stud...

24/03/2019

Lotto and Lotto Plus results for Saturday, 23 March 2019

Are you ready for the Lotto and Lotto Plus draw on Saturday, 23 March? It's yet another chance to find out whether or not you're South Africa's late...

24/03/2019

Free daily horoscope, celeb gossip and lucky numbers for 24 March, 2019

CELEBRITIES BORN ON THIS DAY: Steve McQueen, Bob Mackie, Patti Labelle, David Suzuki, Annabella Sciorra, Peyton Manning, Alyson Hannigan, Sharon Corr, Robert Ca...

24/03/2019

How Thuli Madonsela allegedly helped Jacob Zuma's rise to the top

Former Public Protector Thuli Madonsela has been the thorn in Jacob Zuma's side for quite some time now. During her time in office, she compiled the damning...

24/03/2019

lake elsinore laps with supercross adam cianciarulo

pros Mar 23, 2019 Adam Cianciarulo is having a season for the books. He's currently leading the Supercross Lites 250 Western Region and is showing zero...

23/03/2019

Reckeen MVP-100 @ NAB2019

Reckeen MVP-100 @ NAB2019 posted: 23/03/2019 Reckeen MVP-100 is an advanced video processor for universal use, that can mimic multi-camera live production...

23/03/2019

Robe SuperSpikies for Triggerfinger Shows

Robe SuperSpikies for Triggerfinger Shows posted: 22/03/2019 Belgian rock band Triggerfinger played four highly energised, sold-out shows at the beautiful...

23/03/2019

Bridge Technologies to Highlight Breadth and Depth of Solutions That Will Ease Industry Transition to IP

Bridge Technologies to Highlight Breadth and Depth of Solutions That Will Ease I...

23/03/2019

Net Insight, Red Bee Media, Telestream join SRT open source video streaming project

Net Insight, Red Bee Media, Telestream join SRT open source video streaming proj...

23/03/2019

Powerball and Powerball Plus results Friday, 22 March 2019

It's Friday night and that can only mean one thing; cash dollar bills (not really) are ready to be won in the Powerball draw. Powerball and Powerball Plus ...

23/03/2019

Super Rugby highlights: Hurricanes 34-28 Stormers [video]

The Hurricanes earned a hard-fought 34-28 win over the visiting Stormers in Wellington if you missed it don't worry we have the Super Rugby highlights you n...

23/03/2019

Sunday movie: Ant-Man And The Wasp - what you need to know

If all goes well on the load shedding front, you'd be able to watch Ant-Man And The Wasp on Sunday, on M-Net Channel 101 at 20:05. If you haven't seen ...

23/03/2019

Sunday movie: Deadpool 2 - what you need to know

M-Net's Sunday movie Deadpool 2 is the 11th installment in the X-Film franchise, and also serves as a direct sequel to the first Deadpool movie. If you en...

23/03/2019

Loyola University Chicago Head Coach Porter Moser to Join Saturday and Sunday's NCAA Tournament Coverage as Guest Studio Analyst

Loyola University Chicago Head Coach Porter Moser to Join Saturday and Sunday...

23/03/2019

PSL: Walusimbi blasts at Chiefs after unhappy stint

Former Kaizer Chiefs defender, Godfrey Walusimbi has shed some light on how his stint at Naturena became an all-too-brief one. The Ugandan international arrive...

23/03/2019

IPL 2019: Rabada reckons the Delhi Capitals squad is ready to come of age

Proteas seamer Kagiso Rabada feels that the Delhi Capitals, formerly the Delhi Daredevils, have the quality in their squad to challenge for the IPL title in 201...

23/03/2019

Crossing the Uncanny Valley

We've all seen the efforts by digital artists to create lifelike human faces. It is arguably the most difficult task in computer graphics, and many have mad...

23/03/2019

Nvidia GTC 2019 by the Book

Kicking off the first day of Nvidia's 10 th annual GTC conference, CEO Jensen Huang focused on three chapters of innovation in his keynote: computer grap...

23/03/2019

Master the Modes: HERO7 Black Scene Analysis + Advanced Metadata

tools of the trade Mar 22, 2019 We're about to get super meta here. But not in the self-referential, that's so meta way that became nomenclature ...

23/03/2019

FROM THE DIRECTOR OF QUICKSAND COMES HOME FOR CHRISTMAS, A NEW NORWEGIAN ORIGINAL SERIES FROM NETFLIX

Oslo -- March 22, 2019 -- Netflix today announced Home for Christmas, a brand ne...

23/03/2019

ANNA CATHCART, JANEL PARRISH AND JOHN CORBETT RETURN TO TO ALL THE BOYS I'VE LOVED BEFORE

Anna Cathcart (The Descendants, Odd Squad), Janel Parrish (Pretty Little Liars: ...

23/03/2019

Nokia comments on market rumors related to its annual report on Form 20-F

Nokia Corporation Stock Exchange Release March 22, 2019 at 16:45 (CET +1) Nokia comments on market rumors related to its annual report on Form 20-F Espoo - ...

23/03/2019

ESPN Connects Abu Dhabi and Bristol via IP for Expanded Special Olympics Production

ESPN Connects Abu Dhabi and Bristol via IP for Expanded Special Olympics Product...

23/03/2019

SVG Venue Summit at Little Caesars Arena: Full Program Announced, Call for Speakers Now Open

SVG Venue Summit at Little Caesars Arena: Full Program Announced, Call for Speak...

23/03/2019

First FA Foray into Esports Broadcasting Finds eLions Champions Ready for FIFA eNations Cup

First FA Foray into Esports Broadcasting Finds eLions Champions Ready for FIFA e...

23/03/2019

Sports Graphics Forum: Successful On-Air Packages Call for Open Communication Between Creator and Client

Sports Graphics Forum: Successful On-Air Packages Call for Open Communication Be...

23/03/2019

BT Sport, Sunset+Vine To Produce Amazon's Premier League Football Coverage

BT Sport, Sunset+Vine To Produce Amazon's Premier League Football Coverage By Will Strauss, Contributing Editor Friday, March 22, 2019 - 1:05 pm Print ...

23/03/2019

SVG Sports Graphics Forum: How Fox and drive studio Created the 2018 FIFA World Cup Experience

SVG Sports Graphics Forum: How Fox and drive studio Created the 2018 FIFA World ...

23/03/2019

Meet Sumit - Our new Operations Support Engineer

We have yet another exciting announcement and addition to the team in the form of Sumit Arora, Our New Operations Support Engineer. Sumit, moved to Norway with...

23/03/2019

Television Network Affiliate Groups to Hold Meetings at 2019 NAB Show

Television Network Affiliate Groups to Hold Meetings at 2019 NAB Show WASHINGTON, D.C. - The affiliate boards of directors of ABC, CBS, NBC and FOX Television ...

23/03/2019

Avid and FotoKem Renew Multi-year Enterprise Agreement

Avid recently announced that FotoKem, a leader in digital and film post production for over five decades, has renewed its multi-year enterprise agreement with A...

23/03/2019

Scale Logic Offers Media Management Workshops at NAB

Scale Logic, Inc. is going back to school at NAB, with two days of media management workshops on the show floor with some of the industry's most prominent t...