Sony 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

05/01/2027

Worlds first 802.15.4ab-UWB chip verified by Calterah and Rohde & Schwarz to be demoed at CES 2026

Worlds first 802.15.4ab-UWB chip verified by Calterah and Rohde & Schwarz to be ...

01/06/2026

Dolby Sets the New Standard for Premium Entertainment at CES 2026

January 6 2026, 05:30 (PST) Dolby Sets the New Standard for Premium Entertainment at CES 2026 Throughout the week, Dolby brings to life the latest innovatio...

02/05/2026

Dalet Flex LTS Delivers Smarter Search, Faster Editing, and an AI-Ready Foundation for Modern Media

Dalet, a leading technology and service provider for media-rich organizations, t...

01/05/2026

NBCUniversal's Peacock to Be First Streamer to Integrate Dolby's Full Suite of Premium Picture and Sound Innovations

January 5 2026, 18:30 (PST) NBCUniversal's Peacock to Be First Streamer to ...

01/04/2026

DOLBY AND DOUYIN EMPOWER THE NEXT GENERATON OF CREATORS WITH DOLBY VISION

January 4 2026, 18:00 (PST) DOLBY AND DOUYIN EMPOWER THE NEXT GENERATON OF CREATORS WITH DOLBY VISION Douyin Users Can Now Create And Share Videos With Stun...

30/03/2026

NAB 2026: Manifold to Demonstrate 400GbE COTS FPGA Support

Manifold Technologies, a Germany-based provider of cloud infrastructure for live broadcast production, will demonstrate support for 400GbE COTS FPGA accelerator...

30/03/2026

NAB 2026: Boland Communications Introduces QD-OLED Series Monitors

Boland Communications will introduce its QD4K315HDR10, a 31.5-inch QD-OLED monitor, at NAB Show 2026 (Booth C3519, April 18-22). The company is also introducing...

30/03/2026

NAB 2026: PTZOptics to Showcase Move 4K and Horizon Platform

PTZOptics will demonstrate its Move 4K PTZ cameras and Horizon web-based control platform at NAB Show 2026 (Booth N1902). Move 4K with Horizon is now available...

30/03/2026

NAB 2026: Net Insight to Showcase Updated Nimbra Edge

Net Insight will demonstrate the next version of Nimbra Edge, its orchestration and control layer for live media services across multi-domain environments, at N...

30/03/2026

NAB 2026: Appear to Showcase Live Production Processing

Appear ASA will exhibit at NAB Show 2026 (Booth W1531, April 19-22, Las Vegas). The company completed an IPO in November 2025. Our customer-first approach is ...

30/03/2026

NAB 2026: Harmonic Announces New Live Sports Streaming Capabilities

Harmonic has announced new capabilities for its sports streaming platform, covering multiview, programmatic advertising, in-stream advertising, and content wate...

30/03/2026

NAB 2026: Ateme to Showcase GenAI, Agentic AI, and Streaming

Ateme (Booth W1723) will demonstrate broadcast, streaming, and AI-driven media workflow solutions at NAB Show 2026. GenAI and Agentic AI Ateme will demonstrat...

30/03/2026

NAB 2026: Bitmovin's Player Web X Adds Advertising Support, Vertical Video, and Proprietary ABR Algorithm

Bitmovin has announced new capabilities for Player Web X, its web video player, ...

30/03/2026

NAB 2026: Brazil's Minister of Communications and FCC Commissioner To Speak

The 2026 NAB Show (April 18-22, exhibits April 19-22, Las Vegas Convention Center) will host Brazil's Minister of Communications, Frederico de Siqueira Filh...

30/03/2026

NAB 2026: EVS To Showcase Expanded Live Production Ecosystem

EVS will exhibit at NAB Show 2026 (Booth N1841), highlighting new products and updates across its live production portfolio, including the debut of T-Motion med...

30/03/2026

NAB 2026: Solid State Logic To Demonstrate Expanded Virtual System T Platform

Solid State Logic will demonstrate its virtualized System T platform at NAB Show 2026 (Booth C6907). Demonstrations will include the VTE1 virtual DSP engine, ne...

30/03/2026

NAB 2026: Globecast To Showcase Managed Media Services Approach

Globecast will exhibit at NAB Show 2026 (Booth W3335), highlighting its hybrid service model spanning satellite, IP, fiber, and cloud. The company will demonst...

30/03/2026

NAB 2026: IP Showcase Returns as IPMX Moves to Deployment

The Alliance for IP Media Solutions (AIMS), Advanced Media Workflow Association (AMWA), and the Video Services Forum (VSF) have announced that the IP Showcase w...

30/03/2026

NAB 2026: BBright To Demonstrate Single-Stream ST 2110 Playout

At NAB Show 2026 BBright will present a demonstration of its One Stream for the World concept, showing how a single ST 2110 playout stream can simultaneously ...

30/03/2026

NAB 2026: OpenDrives To Demonstrate New Storage and Edge Products

OpenDrives will demonstrate new products at NAB Show 2026, with two locations in the West Hall: a pod (W3443-E) in the Sports Business Hub and a cabana at W1158...

30/03/2026

Behind the Mic: Amazon Prime Hosts 90th Master Tournament With Host Terry Gannon

Behind The Mic provides a roundup of recent news regarding on-air talent, including new deals, departures, and assignments compiled from press releases and repo...

30/03/2026

Op-Ed: Preparing for Agentic AI in Live Sports

The economics of live sports streaming have changed. New rights models, cloud production tools, and lower-cost distribution have made it possible for high schoo...

30/03/2026

Movimento Strings from Sonora Cinematic

MPE-capable chamber strings library announced Alongside their collection of Kontakt instruments, Sonora Cinematic have been steadily introducing a series of...

30/03/2026

UJAM release Groovemate Latigo

Latin-inspired percussion instrument announced Built on a newly developed engine and interface, UJAM's latest instrument has been designed to create Lat...

30/03/2026

Best Service launch Desert Winds

Latest Eduardo Tarilonte collaboration announced The latest library to join Best Service's ever-growing range includes four solo wind instruments that c...

30/03/2026

SOS Music Creators Survey 2026

We want to hear from you! Complete our SOS Quick Survey and enter the prize draw for a chance to win one of three $50 Amazon vouchers! Sound On Sound carri...

30/03/2026

Government of Canada Selects MAS for Strategic Tanker Fleet Sustainment

CC-330 Husky. 2024 Eric Desbiens Photography. Used with permission for the announcement and related communications. No residual rights....

30/03/2026

L3Harris Included in MDA Space Solution for RCN ISTAR Program

L3Harris Technologies will provide WESCAM CMX -8 sensor systems for integration on new Uncrewed Aircraft Systems from MDA Space, enhancing the Royal Canadian Na...

30/03/2026

EVS to Debut T-Motion Robotics at 2026 NAB Show

Share Copy link Facebook X Linkedin Bluesky Email...

30/03/2026

SDVI To Feature New Rally Media Supply Chain Management Enhancements

Share Copy link Facebook X Linkedin Bluesky Email...

30/03/2026

Boland Communications Introduces QD4K315HDR10 QD-OLED Series Monitors

Share Copy link Facebook X Linkedin Bluesky Email...

30/03/2026

Mileto Tecnologia accelerates streaming growth with Synam...

Synamedia today announced that Mileto Tecnologia, one of Brazil's largest pay-TV operators, has chosen the Synamedia Go platform to support its rapid OTT ex...

30/03/2026

FOR-A's Software-Defined, AI-Powered Development Advances with Nippon TV and NVIDIA Technology

FOR-A's Software-Defined, AI-Powered Development Advances with Nippon TV and...

30/03/2026

Give Your Astrophotography REAL Depth - After Effects Tutorial

Give Your Astrophotography REAL Depth - After Effects Tutorial Graham Quince March 30, 2026 0 Comments In this tutorial, I talk you through the full w...

30/03/2026

Alfalite returns to NAB Show alongside FOR-A, showcasing LED solutions for broadcast and mission-critical environments

Alfalite returns to NAB Show alongside FOR-A, showcasing LED solutions for broad...

30/03/2026

WideOrbit Announces New Name, New Features for Flagship Radio Automation Software

Introducing WO Aurora WideOrbit is pleased to introduce WO Aurora, a new name fo...

30/03/2026

Sky announces changes to its Diversity Advisory Council

Sky welcomes Karen Blackett CBE to its DAC and thanks Baroness Prashar and Ndidi Okezie as they step down after five yearsMonday 30 March 2026 Sky announces ch...

30/03/2026

Netflix Announces the Reunion for Love is Blind: Sweden Season 3 - Premiering April 2

Back to All News Netflix Announces the Reunion for Love is Blind: Sweden Season...

30/03/2026

Netflix unveils new images from the second season of 'Gangs of Galicia'

Back to All News Netflix unveils new images from the second season of Gangs of Galicia Entertainment 30 March 2026 GlobalSpain Link copied to clipboard Do...

30/03/2026

The Latest on Netflix Anime, Unveiled at AnimeJapan 2026

Back to All News The Latest on Netflix Anime, Unveiled at AnimeJapan 2026 Entertainment 30 March 2026 GlobalJapan Link copied to clipboard From romance an...

30/03/2026

KBRO Leverages Harmonic's Fiber-on-Demand Solution for Network Upgrades

Leading Taiwan Broadband Operator Drives Fiber Deeper with Harmonic SAN JOSE, Calif. - March 30, 2026 - Harmonic (NASDAQ: HLIT) today announced that KBRO, a lea...

30/03/2026

Top 10 Reasons Government Meetings Need Transcriptions (and Why It Matters More Than Ever)

Tyngsboro, Mass., March 30, 2026 - City councils, county commissions, school boa...

29/03/2026

Victory+ Turns to Creator Economy, Bringing In Popular Women's Sports Influencer Coach Jackie J to Host Live NWSL Alt-Cast

Cloud-based production, real-time engagement, and creator-driven storytelling ai...

28/03/2026

Harrison launch LiveTrax 3

Now features DiGiCo console integration Harrison's live recording and virtual soundcheck software has just reached its third major version, which among ...

28/03/2026

Sonora Cinematic launch Movimento Strings

MPE-capable chamber strings library announced Alongside their collection of Kontakt instruments, Sonora Cinematic have been steadily introducing a series of...

28/03/2026

Globecast Reimagines Managed Media Services for a Hybrid...

Globecast, the leading provider of broadcast, media and entertainment managed services, will showcase its reimagined approach to media operations at the 2026 NA...

28/03/2026

Fubo Inks Deals for More Baseball RSNs

Share Copy link Facebook X Linkedin Bluesky Email...

27/03/2026

SVG GameDay, Ep. 9: Chicago Cubs' Chris Simonson - Flying the W at Wrigley Field

In-venue and creative video staffers at the professional and collegiate level ha...

27/03/2026

Comcast Business Powers 2026 THE PLAYERS Championship Network and Broadcast Infrastructure

Comcast Business deployed network infrastructure for the 2026 PLAYERS Championsh...

27/03/2026

CS live Equips New OB Van With Riedel MediorNet, hi Control System, and Artist Intercom

Czech production company CS live has equipped its newest outside broadcast van w...