Ericsson reports positive cash flow for full year and expands GSM/GPRS lead in North America

1/25/2002 1:27 AM EST

Fourth quarter report 2001 January 25, 2002

Ericsson reports positive cash flow for full year and expands GSM/GPRS
lead in North America

· Adjusted income before taxes of SEK -3.4 b. excluding additional
risk provisions for Latin America of SEK 1.7 b.
· GSM sales up 9% for the year
· Handset operations repositioned with licensing business and Sony
Ericsson Mobile Communications
· Targeting over 5% operating margin for full year 2002 through new
business opportunities and ongoing cost control

Fourth quarter Twelve months
SEK b. 2001 2000 Change 2001 2000 Change
Orders 39.9 65.9 -39% 201.8 239.1 -16%
- Systems 34.2 59.9 -43% 182.8 213.2 -14%
- Other operations 8.1 9.3 -13% 28.5 39.5 -28%
Sales 58.5 69.1 -15% 210.8 221.6 -5%
- Systems 50.0 61.3 -18% 187.8 194.7 -4%
- Other operations 11.1 10.9 2% 33.4 40.2 -17%
Adjusted Operating Income 1) -4.1 -1.5 -17.9 16.7
- Systems 0.3 9.2 2.9 32.6
- Phones -0.7 -9.8 -14.6 -16.2
- Other operations -3.0 -0.2 -4.4 2.2
- Unallocated -0.6 -0.7 -1.7 -1.9
Adjusted Operating Margin 1) -7% -2% -8% 8%
- Systems 1% 15% 2% 17%
- Phones - - - -
- Other operations -27% -2% -13% 5%
Adjusted Income Before Taxes 1) -5.1 -2.6 -21.1 14.3
Net Income -3.5 2.3 -21.3 21.0
Earnings per share, diluted -0.44 0.28 -2.69 2.65
(SEK)
Earnings per share, diluted per
U.S. GAAP (SEK) -0.69 0.65 -3.14 2.94
Cash flow before financing 16.5 11.6 4.2 6.4
activities
Number of employees 85,198 105,129
1) Adjusted for:
- Capital gain, Juniper - 15.4 5.5 15.4
- Non-operational capital 0.2 -0.2 0.3 5.9
gains
- Pension refund - - - 1.1
- Restructuring charges - -8.0 -15.0 -8.0



Pro forma format: Sony Ericsson Mobile Communications are accounted for
under the equity method and included in "Earnings from Joint Venture and
Associated Companies." The results of the phone activities retained by
Ericsson are included in "Other Operations."



OPERATIONAL RESULTS


Net sales were SEK 58.5 b., representing a 25% increase from the third
quarter 2001 and a 15% decline compared with the fourth quarter 2000.
Adjusted operating income was SEK -4.1 b. including provisions of SEK
1.7 b. for increased customer credit risks in Latin America and a loss
of SEK 0.7 b. from our share in Sony Ericsson Mobile Communications.
Operating margin in Systems improved sequentially to 4% excluding the
additional risk provisions.

Through significant improvements in working capital we generated strong
cash flow of SEK 16.4 b. and achieved our target of positive cash flow
before financing for the full year. Notably, the cash proceeds from the
sale and lease-back of test plants are not included as this transaction
is treated as a financing activity.

Our Efficiency Program continued as scheduled with SEK 4.5 b. in cost
savings for the quarter. The workforce was 85,200 at year-end compared
to 107,300 in March 2001 at the start of the program.

CEO COMMENTS

"Our strength in the market and our positive cash flow demonstrate the
commitment by our employees to win new business and increase operational
efficiency. We achieved our cost reduction targets in the Efficiency
Program and we will continue to improve profitability," says Kurt
Hellström, President and CEO of Ericsson.

In Mobile Systems, we continued to outperform our closest competitors
with sales up 9% in GSM for the full year. We have taken the lead in the
North American transition to GSM/GPRS, which also positions us for
leadership in the follow-on upgrades to 3G/EDGE.

The market for next generation multi-service networks continues with
good demand for our ENGINE solution. However, the traditional circuit-
switching business continues to shrink and we are particularly affected
by the downturn in Latin America. Actions are underway to improve
profitability in this area later this year.

We have made significant progress in the changing handset market, where
we have repositioned Ericsson as one of the few that can deliver core
handset technology. Several licensing agreements are already in place
with other handset suppliers. Furthermore, our joint venture with Sony
is off to a good start with a substantially lower cost structure and the
most advanced GPRS phones.

We are now in a much stronger position to capitalize on market
opportunities and restore profitability in 2002. Although the market
will be particularly challenging in the beginning of 2002, we maintain
our objective of over 5% operating margin for the full year.



OPERATIONAL REVIEW

Systems

Orders and sales have gradually declined during the year, reflecting
lower volumes and more competitive pricing for both mobile systems and
multi-service networks. The Systems order backlog remains strong at 43%
of annual sales, almost unchanged from 44% at the end of 2000. However,
new order development is essential to secure our operational targets in
2002.

The Systems operating margin remained at 1% with improvements in Mobile
Systems offset by further deterioration in Multi-Service Networks.
Excluding the increased risk provisions for Latin America, our Systems
margin increased sequentially to 4%, mainly reflecting cost savings from
our Efficiency Program.

Mobile Systems

In 2001, we again outperformed the competition in our GSM business. GSM
sales for the full year rose 9%, even with a 7% decline in the quarter,
demonstrating our strong performance under difficult market conditions.

Orders for GSM increased in North America and Asia Pacific but were weak
in Western Europe. Overall, orders for 2G systems continued to decline
in the fourth quarter, primarily reflecting lower demand for TDMA and
PDC as these operators prepare to migrate to next generation networks.

In 2.5G, we have signed 78 commercial GPRS agreements out of a total 162
announced industry-wide to date. Thirty of our customers have already
launched commercial services and we have taken the lead in the North
American transition to GSM/GPRS. Recently we also signed our first
global contract for MMS (Multi-Media Messaging) for initial deployment
in nine countries beginning this year. The availability of attractive
MMS services with color images, animations and sounds will be an
important driver for GPRS traffic.

In 3G, we are currently shipping systems to more than 30 operators. We
have been named in 60% of the 3G/UMTS agreements announced so far, which
we believe will represent at least a 40% global market share in terms of
value. We have further strengthened our position with important contract
wins in North America, giving us the best position for the follow-on
upgrade to 3G/EDGE.

Multi-Service Networks

Orders and sales declined significantly as demand for traditional
wireline equipment continued to deteriorate. This was partially offset
by increased spending on next generation packet-switching equipment, as
demand for our ENGINE solution continued to develop favorably.

Approximately two-thirds of our Multi-Service Networks business is
derived from Latin America and Western Europe. As a consequence, our
circuit-switching business has been particularly affected by the market
downturn in these regions.

With the market deterioration accelerating, our efforts to improve
profitability in this business have not been sufficient to offset the
dramatic drop in sales. We are pursuing different solutions including
further restructuring on an ongoing basis.

PHONES

Our Phones business has been restructured with the establishment of the
Sony Ericsson joint venture for mobile multi-media products and the
formation of technology licensing businesses for mobile phone platforms
and Bluetooth. With this, we have repositioned Ericsson to capitalize on
the opportunities in the new handset market structure, which is shifting
from a few complete suppliers to a chain of specialized companies.

As previously announced, our 50% share of income from Sony Ericsson
Mobile Communications is included in "Earnings from Joint Venture and
Associated Companies." The retained activities, including technology
licensing and phone manufacturing in China, are now reported as part of
"Other Operations."

Sony Ericsson Mobile Communications (SEMC)

This was the first quarter of operations for SEMC. The new company is
off to a good start with solid integration of operations from both
partners. The joint venture incurred a loss of SEK 1.4 b. The number of
employees in the joint venture was approximately 4,000 at year-end 2001.

The joint venture sold 6.8 million phones, generating sales of SEK 9.7
b. The lower unit volume and higher average sales price (ASP) reflect a
product strategy that primarily focuses on high-end models, resulting in
lower volumes near-term. As the market for mobile multi-media products
continues to develop, the business opportunity for the joint venture
will also increase.

Other Operations

Sales were up 4% for the quarter, including the retained phone
activities.

Adjusted operating income was SEK -3.0 b., including losses of SEK -1.7
b. incurred by our retained phone activities, mainly for phasing-out
activities and costs for underutilized capacity.

The Defense business was profitable, while the other major units
traditionally reported within Other Operations (Cables, Microelectronics
and Enterprise Systems) generated losses for the quarter. This is
mainly due to lower sales, which declined at a faster pace than our
ability to reduce fixed costs. Solutions for improved profitability are
underway.

Efficiency Program

The Efficiency Program continued on plan and delivered savings of SEK
4.5 b. Operating expenses are now 20% lower compared to the fourth
quarter 2000, excluding the risk provisions for Latin America.

The number of employees affected by the program during the quarter was
4,700, bringing the total reduction within the program to 10,600. The
number of consultants was further reduced by over 500 for a total
reduction of more than 8,000 in 2001.

FINANCIAL REVIEW

Income

Income is reported in a "statutory" format and a "pro forma" format.
Swedish GAAP is used for both, with only the presentation differing to
facilitate comparability. There are no differences in the reported
income between the two formats. In the pro forma version, the previous
three quarters of 2001 as well as the fourth quarter and full year 2000
are restated. This is to show how the restructuring of our Consumer
Products Division affects our reporting.

Gross margin declined in the quarter as improved cost of sales only
partially offset adverse effects of the decline in Multi-Service
Networks and Other Operations. The gross margin was also affected by low
sales in Japan (PDC) and strategic break-in contracts with high initial
costs in China (CDMA) and the U.S. (GSM/GPRS).

Excluding provisions for increased customer credit risk in Latin
America, adjusted income before taxes was SEK -3.4 b. This sequential
improvement reflects reductions in operating expenses from the
Efficiency Program and smaller losses from our phone activities.

Financial net developed negatively due to the increased borrowing. The
effect of changes in foreign currency exchange rates compared to the
rates one year ago was SEK 0.4 b. of which SEK -0.2 b. was for Phones.

Adjusted income before taxes was SEK -5.1 b after deduction of SEK 0.2
b. of non-operational capital gains.

The effective tax rate for the year was 30%.

Earnings per share (EPS) diluted were SEK -0.44 (0.27) in the quarter
and SEK -2.69 (2.65) year to date.

EPS diluted according to U.S. GAAP for the full year was SEK -3.14
(2.94), and SEK -0.69 (0.65) for the quarter. The effect of
capitalization of development expenses for software has normally been
positive under U.S. GAAP. For 2001, however, the effect is negative with
reduced R&D spending, more conservative capitalization due to increased
market uncertainties and extra write-downs as part of product reviews.
Different recognition rules for the timing effects of restructuring
charges compared to Swedish GAAP and effects of market valuation of
derivatives also affected U.S. GAAP EPS negatively this year.

Balance sheet and financing

We improved our payment readiness to 28%. This gives us more flexibility
to operate under the current market uncertainty and enables us to
capitalize on business opportunities. Our equity ratio is now 29%,
compared to 38% at the end of last year. However, with a normal payment
readiness level of between 7% and 10%, the equity ratio would have been
approximately 35%.

As previously announced, we placed a portfolio of customer credits
valued at USD 1.5 b. (approximately SEK 15 b.) in the financial market.
This transaction reduced our on-balance sheet customer financing by SEK
2 b. The rest represents credits against future commitments and thereby
improves our risk profile and reduces future cash outflow.

During the quarter, our total gross customer financing exposure
increased by SEK 4.5 b. to SEK 26.4 b. With two-thirds now off-balance
sheet, our on-balance sheet financing is SEK 8.9 b., down from SEK 9.7
b. at the end of the third quarter.

Net debt decreased from SEK 30.9 b. to SEK 12.9 b. in the quarter.

Cash flow

Cash flow before financing activities was positive by SEK 16.5 b. for
the fourth quarter and by SEK 4.2 b. for the full year. The improvement
in working capital was the primary cash generator.

Our DSO (Days Sales Outstanding) was reduced to 88 days, a substantial
improvement from 102 days in the third quarter, generating SEK 8.9 b. in
cash. Inventory was reduced by SEK 3.0 b. through improved turnover.
Flextronics made a SEK 1.0 b. payment for inventory that was transferred
earlier in the year.

Also contributing to the positive development were divestments of real
estate (SEK 3.8 b.) and the sale of computers and production equipment
(SEK 2.1 b.).

MARKET VIEW

By year-end 2001 the number of mobile subscribers had grown to 940-950
million, within our forecasted growth of 25-35%. We expect about 200
million new subscribers to be added in 2002, a solid growth rate of 20-
25%. Our long-term forecast of 1.6 billion mobile subscribers by the end
of 2005 remains unchanged.

The number of mobile phones sold in 2001 was approximately 390 million,
close to our forecasted 400 million, reflecting a slower than expected
replacement rate. In 2002, we anticipate up to 10% unit volume growth,
driven by increased availability of replacement phones with GPRS,
Bluetooth, color screens and multi-media messaging.

The slowdown in the telecommunications equipment market continued during
the fourth quarter, resulting in a more or less flat mobile systems
market for the full year. The wireline systems market contracted
significantly and is likely to shrink further during 2002.

These market conditions are expected to persist well into 2002 with a
much weaker first half. We maintain our view that the global market for
mobile systems will be flat to down 10% in 2002. However, the North
American market may show modest growth as operators upgrade to GSM/GPRS
and 3G/EDGE.

The build-out of several 3G/UMTS networks in Europe and Asia has begun
with the commercial launch of services planned for later this year. The
number of 3G/UMTS subscribers could reach well over one million by the
end of the year, depending on the availability of phones.

Our market view is based on discussions with our customers and the
current macro-economic outlook. We have assumed that the market downturn
will last well into 2002, that there will be significant net subscriber
additions with increasing usage per subscriber, that GPRS traffic will
gradually build up of over the next 12 months and that deployment of 3G
systems will accelerate during the second half of 2002.

OUTLOOK

In the third quarter report, we stated that our sales of Mobile Systems
during 2002 were expected to be at least in line with the market
development of flat to down 10%. We also stated an objective of an
operating margin over 5% for the full year, even if net sales decline as
much as 10% compared to 2001.

We maintain this outlook for full year 2002 with an operating loss in
the first quarter and results improving over the year. We expect to
generate positive operating cash flow for the full year.

For the first quarter of 2002, we expect sales to be approximately SEK
40 b. with Mobile Systems sales declining and particularly weak sales of
Multi-Service Networks. Income before taxes is expected to be at about
the same level as in the first quarter 2001, including a minor loss from
Sony Ericsson Mobile Communications. We will implement necessary cost
reductions on an ongoing basis to meet our operational targets.

Parent Company information

The Parent Company business mainly consists of corporate management and
holding company functions. It also includes activities performed on a
commission basis by Ericsson Treasury Services AB and Ericsson Credit AB
regarding internal banking and customer credit management. The Parent
Company has branch and representative offices in 44 (44) countries.

In the second quarter, as decided at the Annual General Meeting, a stock
issue and a subsequent stock repurchase was carried out related to the
2001 employee stock option and stock purchase plans. The stock issue
increased the capital stock in restricted stockholders' equity by SEK
155 m. and the repurchase of shares reduced non-restricted equity by SEK
156 m.

Net sales for the year amounted to SEK 1.4 (1.2) b. and income after
financial items was SEK -6.4 (9.0) b. Write-downs of investments in
subsidiaries have affected income by SEK -19.0 b.

Major changes in the company's financial position were:

Increased investments in subsidiaries of SEK 9.1 b.

Increased current and long-term commercial and financial receivables
from subsidiaries of SEK 25.7 b.

Increased cash and short-term cash investments of SEK 23.2 b.

These investments were financed primarily through increased internal
borrowing of SEK 44.3 b. and increased short and long-term external
borrowing of SEK 22.0 b. At year-end, cash and short-term cash
investments amounted to SEK 49.0 (25.9) b.

Dividend proposal

The Board of directors will propose to the Annual General Meeting to
suspend dividends for 2001.

Annual Report

The annual report will be distributed to shareholders and will be
available at our head office at Telefonplan, Stockholm, by March 10,
2002.

Annual General Meeting of shareholders

The Annual General Meeting of shareholders will be held on Wednesday,
March 27, 2002, in Stockholm Globe Arena.

Accounting principles

This report has been prepared in accordance with the Swedish Financial
Accounting Standards Council's recommendation RR 20, Interim Reports.
The same accounting principles have been used as were used in our latest
annual report. The following optional recommendations are not yet
implemented: RR 1:00, RR 15, RR 16, RR 17 and RR 19. For U.S. GAAP
purposes, FAS 133 "Accounting for derivative instruments and hedging
activities" is adopted from January 1, 2001.


Stockholm, January 25, 2002

Kurt Hellström
President and CEO


Uncertainties in the Future

"Safe Harbor" Statement under the U.S. Private Securities Litigation
Reform Act of 1995:
Some statements in this interim report are forward looking and actual
results may differ materially from those stated. In addition to the
factors discussed, among other factors that may affect results are
product demand, the effect of economic conditions, exchange-rate and
interest-rate movements, capital- and credit market developments, the
ability to successfully restructure existing business, the timing of
customer orders and manufacturing lead times, the changes in customer
order and payment patterns, insufficient, excess or obsolete inventory,
and the impact of competing products and their pricing, product
development, commercialization and technological difficulties, political
risks in the countries in which the Company has operations or sales,
supply constraints, and the result of customer financing efforts.
Results for interim periods are not necessarily indicative of results
for the full fiscal year or any future periods.

Date for next report: April 19, 2002

A glossary of all technical terms is available at:
http://www.ericsson.com/about and in the annual report.



FOR FURTHER INFORMATION PLEASE CONTACT


Investors

Gary Pinkham, Vice President, Investor Relations
Phone: +46 8 719 00 00
E-mail:  

Lars Jacobsson, Vice President, Financial Reporting and Analysis
Phone: +46 8 719 9489, +46 70 519 9489
E-mail:  

Maria Bernström, Director, Investor Relations
Phone: +46 8 719 5340, +46 70 533 4750
E-mail:  

Lotta Lundin, Manager, Investor Relations
Phone: +44 20 701 61 032, +44 7887 628 707
E-mail:  

Glenn Sapadin, Manager, Investor Relations
Phone: +1 212 685 4030
E-mail:  


Media

Pia Gideon, Vice President, External Relations
Phone: +46 8 719 2864, +46 70 519 2864
E-mail:  

Mads Madsen, Director, Media Relations
Phone: +46 8 719 0626, +46 70 666 2903
E-mail:  

Åse Lindskog, Director, Media Relations
Phone: +46 719 9725, +46 730 244 872
E-mail:  



ERICSSON
CONSOLIDATED INCOME STATEMENT
Oct-Dec Jan-Dec

SEK 2001 2000 Change 2001 2000 Change
millio
n

Net 58,538 82,109 -29% 231,839 273,569 -15%
sales
Cost of sales -42,648 -55,613 -23% -165,555 -172,892 -4%
Gross margin 15,890 26,496 -40% 66,284 100,677 -34%
Gross margin as 27.1% 32.3% 28.6% 36.8%
percentage of net
sales

Restructuring -3,345 -7,500 -8,345 -7,500
costs**)
Gross margin after 12,545 18,996 -34% 57,939 93,177 -38%
restructuring costs

Research and -9,530 -12,958 -26% -43,094 -41,421 4%
development and other
technical expenses
Selling -7,878 -11,340 -31% -30,186 -34,706 -13%
expenses
Administrative -2,950 -4,254 -31% -12,584 -13,311 -5%
expenses
Operating -20,358 -28,552 -29% -85,864 -89,438 -4%
expenses
Operating expenses as 34.8% 34.8% 37.0% 32.7%
percentage of net
sales

Restructuring 3,345 -500 -6,655 -500
costs**)
Operating expenses -17,013 -29,052 -41% -92,519 -89,938 3%
including
restructuring costs

Other operating 1,247 15,586 8,207 27,652
revenues
Share in earnings of -669 117 -721 274
JV and assoc.
companies
Operating -3,890 5,647 -27,094 31,165
income *)
Operating margin as -6.6% 6.9% -11.7% 11.4%
percentage of net
sales

Financial 1,484 720 106% 3,743 2,929 28%
income
Financial -2,152 -1,314 64% -5,782 -4,449 30%
expenses
Income after -4,558 5,053 -29,133 29,645
financial items

Minority interest in -373 -460 -19% -1,176 -953 23%
income before taxes
Income before -4,931 4,593 -30,309 28,692
taxes

Taxes 1,431 -2,343 9,045 -7,674
Net income -3,500 2,250 -21,264 21,018

Earnings per -0.44 0.30 -2.69 2.67
share, basic (SEK)
Earnings per -0.44 0.28 -2.69 2.65
share, diluted
(SEK)


*) Of which items
affecting
comparability
Non- 179 -231 347 5,933
operational capital
gains/losses, net
Capital gain, 0 15,383 5,453 15,383
Juniper
Pension 0 0 0 1,100
refund
Restructuring 0 -8,000 -15,000 -8,000
costs
Total 179 7,152 -9,200 14,416

Adjusted operating -4,069 -1,505 -17,894 16,749
income
Adjusted operating -7.0% -1.8% -7.7% 6.1%
margin (%)
Adjusted income -5,110 -2,559 -21,109 14,276
before taxes

**) In the fourth quarter restructuring costs of SEK 3,345 m. has been
redistributed between cost of sales and operating expenses.


ERICSSON
CONSOLIDATED BALANCE SHEET

Dec 31 Sep 30 Dec 31 Sep 30
SEK 2001 2001 2000 2000
million

Fixed
assets
Intangible 13,066 13,203 12,833 12,568
assets

Tangible 16,075 23,012 22,378 23,814
assets

Financial
assets
Equity in JV and associated 4,497 2,625 2,790 2,869
companies
Other 3,100 3,139 2,484 2,490
investments
Long-term customer 4,225 5,889 6,364 7,588
financing
Other long-term receivables 13,739 13,911 3,657 3,440

Total fixed 54,702 61,779 50,506 52,769
assets

Current assets
Inventor 24,910 28,248 43,933 48,361
ies

Receivab
les
Accounts receivable - trade and 59,612 63,697 76,240 68,794
short-term customer financing
Other 41,993 45,008 44,029 44,831
receivables

Short-term cash 68,839 39,969 35,606 23,753
investments, cash
and bank

Total current 195,354 176,922 199,808 185,739
assets

Total 250,056 238,701 250,314 238,508
assets

Stockholders 68,587 72,387 91,686 89,926
' equity

Minority interest in equity of 3,532 3,437 2,764 2,433
consolidated subsidiaries

Provisio 34,171 34,749 27,650 26,770
ns

Long-term 52,134 51,541 22,294 22,512
liabilities

Current 91,632 76,587 105,920 96,867
liabilities


Total stockholders' equity, 250,056 238,701 250,314 238,508
provisions and liabilities

Of which interest-bearing 81,761 70,940 46,563 41,444
provisions and liabilities

Assets 2,615 267 435 443
pledged as
collateral
Contingent 15,583 12,796 11,184 11,814
liabilities


ERICSSON
CONSOLIDATED STATEMENT OF CASH FLOW

Oct-Dec Jan-Dec
SEK million 2001 2000 2001 2000

Net income -3,500 2,250 -21,264 21,018
Adjustments to reconcile net -53 -8,601 -13,413 -11,924
income to cash

Changes in operating net
assets
Inventories 2,950 3,907 20,103 -18,305
Customer financing, short-term 1,190 2,808 1,034 946
and long-term
Accounts 4,401 -9,550 19,454 -10,446
receivable
Othe 9,327 9,101 -6,597 7,863
r
Cash flow from operating 14,315 -85 -683 -10,848
activities

Investments in tangible -953 -3,813 -8,306 -12,293
assets
Acquisitions/sales of -3,263 14,616 5,322 22,643
other investments, net
Other 6,352 853 7,850 6,894
investing
activities
Cash flow from investing 2,136 11,656 4,866 17,244
activities 1)

Cash flow before financing 16,451 11,571 4,183 6,396
activities

Dividends paid - -109 -4,295 -4,179
Other financing activities 11,818 297 32,607 3,943
Cash flow from financing 11,818 188 28,312 -236
activities

Effect of exchange rate 601 94 738 438
changes on cash

Net change in 28,870 11,853 33,233 6,598
cash

Cash and cash equivalents, 39,969 23,753 35,606 29,008
beginning of period
Cash and cash equivalents, 68,839 35,606 68,839 35,606
end of period


1) Of which major items:

Investment in Sony -2,800 - -2,800 -
Ericsson JV
Juniper - 15,400 5,500 15,400
Energy System - - - 5,900
Enterprise - - 3,400 -
distribution
Real 3,800 1,000 4,700 5,200
estate
PC and test equipment 2,100 2,100


CHANGES IN STOCKHOLDERS' EQUITY


Jan-Dec Jan-Sep Jan-Dec Jan-Sep
2001 2001 2000 2000


Opening balance 91,686 91,686 69,176 69,176

Stock issue 155 155 - -
Conversion of debentures 10 10 1,915 1,902
Repurchase of own stock -156 -156 -386 -386
Dividends paid -3,954 -3,954 -3,919 -3,919
Gains on sale of own options and - - 2,018 2,010
convertible debentures
Changes in cumulative 2,110 2,064 1,975 2,476
translation
Net income -21,264 -17,764 21,018 18,771
Other changes 0 346 -111 -104

Closing balance 68,587 72,387 91,686 89,926




ERICSSON
OTHER INFORMATION
Jan-Dec Jan-Sep Jan-Dec
SEK million 2001 2001 2000
Number of shares and
earnings per share
Number of shares 8,066 8,065 7,910
outstanding, basic, end of
period (million)
Number of shares 8,147 8,149 8,004
outstanding, diluted, end
of period (million)
Number of treasury shares 157 157 2
, end of period (million)
Average number of shares, 7,909 7,909 7,869
basic (million)
Average number of shares, 7,909** 7,909** 8,004
diluted (million)
Earnings per share, basic -2.69 -2.25 2.67
(SEK)
Earnings per share, -2.69 -2.25 2.65
diluted (SEK)*
Earnings per share, -3.14 -2.45 2.94
diluted, per U.S. GAAP
(SEK)

Ratios
Equity ratio, percent 28.8 31.8 37.7
Capital turnover (times) 1.6 1.6 2.1
Accounts receivable 3.5 3.4 3.9
turnover (times)
Inventory turnover (times) 4.8 4.5 5.2
Return on equity, percent -26.5 -28.9 26.1
Return on capital -15.8 -19.4 26.5
employed, percent
Days Sales Outstanding 88 102 82

Other
Research and development
and other technical
expenses
(including costs related 43,973 34,284 43,780
to customer orders)
- As percentage of Net 19.0 19.8 16.0
Sales
Additions to tangible 8,306 7,699 12,293
fixed assets
- Of which in Sweden 3,374 2,702 5,094
Total depreciation on 7,749 5,771 10,936
tangible and intangible
assets
- Of which goodwill 1,022 741 761
Orders booked 221,477 181,547 292,344
Export from Sweden 121,277 90,250 158,338
Net debt 12,922 30,032 10,957


* Calculation of earnings
per share, diluted
Net income Calculation Calculation 21,018
Interest on convertible not applicable not applicable 207
debentures, net after tax
Adjusted net income See below ** See below ** 21,225
Average number of shares, 8,004
diluted (million)
Earnings per share, 2.65
diluted (SEK)

** Potential ordinary
shares are not dilutive
when their conversion to
ordinary shares would increase
earnings per share.

Three-year summary 2000 1999 1998
Net sales 273,569 215,403 184,438
Operating income 31,165 17,590 19,273
Earnings per share, fully diluted 2.65 1.54 1.67
(SEK)
Return on equity, percent 26.1 18.3 22.5
Return on capital employed, percent 26.5 19.0 24.9
Equity ratio, percent 37.7 35.2 38.9
Number of employees 105,129 103,290 103,667


ORDERS BOOKED BY SEGMENT BY QUARTER
(SEK m.)

2000 2001
Year to date 0003 0006 0009 0012 0103 0106 0109 0112
Systems 57,944 103,503 153,219 213,164 62,583 113,286 148,561 182,757
of which 48,471 85,757 125,738 175,609 52,625 94,841 125,430 156,370
Mobile Systems
Multi-Service 9,473 17,746 27,481 37,555 9,958 18,445 23,131 26,387
Networks
Phones 14,562 27,988 42,113 56,937 7,178 14,813 22,234 22,234
Other 11,266 19,991 27,665 35,751 8,239 13,764 17,902 25,974
operations
Less : -4,298 -7,287 -10,131 -13,508 -2,501 -5,198 -7,150 -9,488
Intersegment
sales
Total 79,474 144,195 212,866 292,344 75,499 136,665 181,547 221,477



2000 2001
Isolated Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
quarters
Systems 57,944 45,559 49,716 59,945 62,583 50,703 35,275 34,196
of which 48,471 37,286 39,981 49,871 52,625 42,216 30,589 30,940
Mobile Systems
Multi-Service 9,473 8,273 9,735 10,074 9,958 8,487 4,686 3,256
Networks
Phones 14,562 13,426 14,125 14,824 7,178 7,635 7,421 0
Other 11,266 8,725 7,674 8,086 8,239 5,525 4,138 8,072
operations
Less : -4,298 -2,989 -2,844 -3,377 -2,501 -2,697 -1,952 -2,338
Intersegment
sales
Total 79,474 64,721 68,671 79,478 75,499 61,166 44,882 39,930






NET SALES BY SEGMENT BY QUARTER
(SEK m.)

2000 2001
Year to 0003 0006 0009 0012 0103 0106 0109 0112
date
Systems 38,910 85,343 133,440 194,747 44,127 94,843 137,798 187,777
of which 32,481 70,339 109,061 158,083 35,336 76,356 111,923 154,343
Mobile
Systems
Multi- 6,429 15,004 24,379 36,664 8,791 18,487 25,875 33,434
Service
Networks
Phones 14,794 28,145 42,473 56,279 7,170 15,317 23,567 23,567
Other 9,297 17,801 25,888 35,927 7,249 14,162 19,671 30,816
operations
Less : -3,916 -7,171 -10,341 -13,384 -2,614 -5,610 -7,735 -10,321
Intersegmen
t sales
Total 59,085 124,118 191,460 273,569 55,932 118,712 173,301 231,839




2000 2001
Isolated Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
quarters
Systems 38,910 46,433 48,097 61,307 44,127 50,716 42,955 49,979
of which 32,481 37,858 38,722 49,022 35,336 41,020 35,567 42,420
Mobile
Systems
Multi-Service 6,429 8,575 9,375 12,285 8,791 9,696 7,388 7,559
Networks
Phones 14,794 13,351 14,328 13,806 7,170 8,147 8,250 0
Other 9,297 8,504 8,087 10,039 7,249 6,913 5,509 11,145
operations
Less : -3,916 -3,255 -3,170 -3,043 -2,614 -2,996 -2,125 -2,586
Intersegment
sales
Total 59,085 65,033 67,342 82,109 55,932 62,780 54,589 58,538



ADJUSTED OPERATING INCOME AND OPERATING
MARGIN BY SEGMENT BY QUARTER
(SEK m.)

2000 2001
Year to date 0003 0006 0009 0012 0103 0106 0109 0112

Systems 5,641 15,280 23,392 32,641 1,808 2,382 2,620 2,881
Phones 569 -1,544 -5,517 - -5,722 -10,350 -14,559 -17,001
15,613
Other 578 1,058 1,550 1,579 -118 25 -817 -2,058
operations
Unallocated* -413 -1,260 -1,171 -1,858 -331 -642 -1,069 -1,716
Total 6,375 13,534 18,254 16,749 -4,363 -8,585 -13,825 -17,894

Items
affecting
comparability:
- Non- - 4,738 6,164 5,933 42 3 168 347
operational
capital
gains/losses,
net
- Capital gain - - - 15,383 5,453 5,453 5,453 5,453
Juniper
Networks
- Pension - 1,100 1,100 1,100 - - - -
refund
-Restructuring - - - -8,000 - -15,000 -15,000 -15,000
costs
Total 0 5,838 7,264 14,416 5,495 -9,544 -9,379 -9,200


2000 2001
As percentage 0003 0006 0009 0012 0103 0106 0109 0112
of Net Sales

Systems 14% 18% 18% 17% 4% 3% 2% 2%
Phones 4% -5% -13% -28% -80% -68% -62% n/a
Other 6% 6% 6% 4% -2% 0% -4% n/a
operations
Total 11% 11% 10% 6% -8% -7% -8% -8%


2000 2001
Isolated Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
quarters

Systems 5,641 9,639 8,112 9,249 1,808 574 238 261
Phones 569 -2,113 -3,973 - -5,722 -4,628 -4,209 -2,442
10,096
Other 578 480 492 29 -118 143 -842 -1,241
operations
Unallocated* -413 -847 89 -687 -331 -311 -427 -647
Total 6,375 7,159 4,720 -1,505 -4,363 -4,222 -5,240 -4,069

Items affecting comparability:
- Non- - 4,738 1,426 -231 42 -39 165 179
operational
capital
gains/losses,
net
- Capital gain - - - 15,383 5,453 - - -
Juniper
Networks
- Pension - 1,100 - - - - -
refund
- - - - -8,000 - -15,000 - -
Restructuring
costs
Total 0 5,838 1,426 7,152 5,495 -15,039 165 179


2000 2001
As percentage Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
of Net Sales

Systems 14% 21% 17% 15% 4% 1% 1% 1%
Phones 4% -16% -28% -73% -80% -57% -51% n/a
Other 6% 6% 6% 0% -2% 2% -15% n/a
operations
Total 11% 11% 7% -2% -8% -7% -10% -7%

· "Unallocated" consists mainly of costs for
corporate staffs, certain goodwill amortization
and non-operational gains and losses


ORDERS BOOKED BY MARKET AREA BY QUARTER
(SEK m.)

2000 2001
Year to date 0003 0006 0009 0012 0103 0106 0109 0112
Western Europe* 25,048 50,870 71,807 105,684 29,042 47,697 60,895 68,934
Central- and 17,388 24,503 32,104 40,972 11,273 17,606 29,548 33,455
Eastern Europe,
Middle East &
Africa
North America 9,148 19,082 27,326 37,977 7,320 13,183 19,954 29,767
Latin America 9,695 19,312 33,053 44,959 12,638 22,723 26,989 33,332
Asia Pacific 18,195 30,428 48,576 62,752 15,226 35,456 44,161 55,989
Total 79,474 144,19 212,86 292,344 75,499 136,66 181,547 221,477
5 6 5
* Of which 2,924 6,010 7,983 9,876 1,998 5,135 6,294 9,379
Sweden
* Of which EU 23,261 47,523 67,194 99,951 27,565 45,356 57,855 64,437

Change 0103 0106 0109 0112
Western Europe* 16% -6% -15% -35%
Central- and -35% -28% -8% -18%
Eastern Europe,
Middle East &
Africa
North America -20% -31% -27% -22%
Latin America 30% 18% -18% -26%
Asia Pacific -16% 17% -9% -11%
Total -5% -5% -15% -24%
* Of which -32% -15% -21% -5%
Sweden
* Of which EU 19% -5% -14% -36%



2000 2001
Isolated quarters Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Western Europe* 25,048 25,822 20,937 33,877 29,042 18,655 13,198 8,039
Central- and 17,388 7,115 7,601 8,868 11,273 6,333 11,942 3,907
Eastern Europe,
Middle East &
Africa
North America 9,148 9,934 8,244 10,651 7,320 5,863 6,771 9,813
Latin America 9,695 9,617 13,741 11,906 12,638 10,085 4,266 6,343
Asia Pacific 18,195 12,233 18,148 14,176 15,226 20,230 8,705 11,828
Total 79,474 64,721 68,671 79,478 75,499 61,166 44,882 39,930
* Of which Sweden 2,924 3,086 1,972 1,893 1,998 3,137 1,159 3,085
* Of which EU 23,261 24,262 19,671 32,757 27,565 17,791 12,499 6,582

Change Q1 Q2 Q3 Q4
Western Europe* 16% -28% -37% -76%
Central- and -35% -11% 57% -56%
Eastern Europe,
Middle East &
Africa
North America -20% -41% -18% -8%
Latin America 30% 5% -69% -47%
Asia Pacific -16% 65% -52% -17%
Total -5% -5% -35% -50%
* Of which Sweden -32% 2% -41% 63%
* Of which EU 19% -27% -36% -80%


NET SALES BY MARKET AREA BY QUARTER
(SEK m.)

2000 2001
Year to date 0003 0006 0009 0012 0103 0106 0109 0112
Western Europe* 23,578 47,011 70,090 100,234 18,024 37,154 53,568 71,105
Central- and 7,323 16,799 25,850 37,701 8,187 17,315 25,555 35,867
Eastern Europe,
Middle East &
Africa
North America 8,549 19,263 27,704 35,193 7,186 14,961 23,131 31,379
Latin America 7,781 17,334 28,953 44,118 8,467 18,482 24,836 34,516
Asia Pacific 11,854 23,711 38,863 56,323 14,068 30,800 46,211 58,972
Total 59,085 124,11 191,46 273,569 55,932 118,71 173,30 231,839
8 0 2 1
* Of which Sweden 2,380 4,371 6,704 8,732 1,628 3,518 5,022 7,341
* Of which EU 22,052 44,031 65,754 94,293 17,046 35,020 50,650 66,561

Change 0103 0106 0109 0112
Western Europe* -24% -21% -24% -29%
Central- and 12% 3% -1% -5%
Eastern Europe,
Middle East &
Africa
North America -16% -22% -17% -11%
Latin America 9% 7% -14% -22%
Asia Pacific 19% 30% 19% 5%
Total -5% -4% -9% -15%
* Of which Sweden -32% -20% -25% -16%
* Of which EU -23% -20% -23% -29%



2000 2001
Isolated Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
quarters
Western Europe* 23,578 23,433 23,079 30,144 18,024 19,130 16,414 17,537
Central- and 7,323 9,476 9,051 11,851 8,187 9,128 8,240 10,312
Eastern Europe,
Middle East &
Africa
North America 8,549 10,714 8,441 7,489 7,186 7,775 8,170 8,248
Latin America 7,781 9,553 11,619 15,165 8,467 10,015 6,354 9,680
Asia Pacific 11,854 11,857 15,152 17,460 14,068 16,732 15,411 12,761
Total 59,085 65,033 67,342 82,109 55,932 62,780 54,589 58,538
* Of which 2,380 1,991 2,333 2,028 1,628 1,890 1,504 2,319
Sweden
* Of which EU 22,052 21,980 21,723 28,539 17,046 17,974 15,630 15,911

Change Q1 Q2 Q3 Q4
Western Europe* -24% -18% -29% -42%
Central- and 12% -4% -9% -13%
Eastern Europe,
Middle East &
Africa
North America -16% -27% -3% 10%
Latin America 9% 5% -45% -36%
Asia Pacific 19% 41% 2% -27%
Total -5% -3% -19% -29%
* Of which -32% -5% -36% 14%
Sweden
* Of which EU -23% -18% -28% -44%


EXTERNAL ORDERS BOOKED BY MARKET AREA AND SEGMENT
(SEK m.)

Share Change
Year to date 2001 Systems Phones Other Total of Total vs. 2000 (%)
Western Europe 49,996 7,506 11,432 68,934 31% -35%
Central- and 31,058 1,842 555 33,455 15% -18%
Eastern Europe,
Middle East &
Africa
North America 23,342 5,123 1,302 29,767 13% -22%
Latin America 29,171 2,257 1,904 33,332 15% -26%
Asia Pacific 48,824 4,834 2,331 55,989 26% -11%
Total 182,391 21,562 17,524 221,477 100% -24%
Share of Total 82% 10% 8% 100%


EXTERNAL NET SALES BY MARKET AREA AND SEGMENT
(SEK m.)

Share Change
Year to date 2001 Systems Phones Other Total of Total vs. 2000 (%)
Western Europé 51,209 7,465 12,431 71,105 31% -29%
Central- and 32,307 2,017 1,543 35,867 15% -5%
Eastern Europe,
Middle East &
Africa
North America 22,677 6,147 2,555 31,379 14% -11%
Latin America 30,090 2,428 1,998 34,516 15% -22%
Asia Pacific 51,096 5,017 2,859 58,972 25% 5%
Total 187,379 23,074 21,386 231,839 100% -15%
Share of Total 81% 10% 9% 100%


TOP 10 MARKETS IN ORDERS AND SALES

Year to
date 2001

Orders Sales
Share of Share of
Total Total Sales
Orders
United States 13% United States 13%
China 12% China 12%
Italy 7% Mexico 6%
Mexico 6% Italy 6%
Brazil 5% United Kingdom 5%
Japan 4% Brazil 5%
United Kingdom 4% Japan 4%
Sweden 4% Spain 4%
Spain 4% Sweden 3%
Germany 3% Turkey 3%


NUMBER OF EMPLOYEES BY SEGMENT BY QUARTER

2000 2001
0003 0006 0009 0012 0103 0106 0109 0112
System 64,836 66,207 68,571 71,102 75,081 76,636 71,392 67,898
s
Phones 17,290 17,710 18,137 16,840 14,461 7,837 6,439 0
Other 19,167 16,324 15,602 16,059 16,453 14,005 13,774 15,861
operations
Unallocate 1,030 1,076 1,084 1,128 1,264 1,343 1,344 1,439
d
Total 102,323 101,317 103,394 105,129 107,259 99,821 92,949 85,198

Change 0103 0106 0109 0112
System 16% 16% 4% -5%
s
Phones -16% -56% -65% -
Other -14% -14% -12% -1%
operations
Unallocate 23% 25% 24% 28%
d
Total 5% -1% -10% -19%

ERICSSON
CONSOLIDATED INCOME STATEMENT - PROFORMA
Oct-Dec Jan-Dec

SEK 2001 2000 Change 2001 2000 Change
million

Net 58,538 69,147 -15% 210,837 221,586 -5%
sales
Cost of sales -42,648 -37,823 13% -138,123 -120,617 15%
Gross margin 15,890 31,324 -49% 72,714 100,969 -28%
Gross margin 27.1% 45.3% 34.5% 45.6%
as percentage
of net sales

Restructuring -2,258 0 -4,858 0
costs
Gross margin 13,632 31,324 -56% 67,856 100,969 -33%
after
restructuring
costs

Research and -9,530 -11,227 -15% -40,247 -34,949 15%
development
and other
technical
expenses
Selling -7,878 -8,319 -5% -26,927 -26,072 3%
expenses
Administrative -2,950 -3,901 -24% -11,175 -12,004 -7%
expenses
Operating -20,358 -23,447 -13% -78,349 -73,025 7%
expenses
Operating 34.8% 33.9% 37.2% 33.0%
expenses as
percentage of
net sales

Restructuring 2,258 0 -6,242 0
costs
Operating -18,100 -23,447 -23% -84,591 -73,025 16%
expenses
including
restructuring
costs

Other 1,247 15,496 8,209 27,132
operating
revenues
Share in - 669 -9,726 -14,668 -15,911
earnings of JV
and assoc.
Companies
Restructuring 0 -8,000 -3,900 -8,000
costs, phones
Operating -3,890 5,647 -27,094 31,165
income *)
Operating -6.6% 8.2% -12.9% 14.1%
margin as
percentage of
net sales

Financial 1,484 720 106% 3,743 2,929 28%
income
Financial -2,152 -1,314 64% -5,782 -4,449 30%
expenses
Income after -4,558 5,053 -29,133 29,645
financial
items

Minority - 373 - 460 -19% -1,176 - 953 23%
interest in
income before
taxes
Income before -4,931 4,593 -30,309 28,692
taxes

Taxes 1,431 -2,343 9,045 -7,674
Net -3,500 2,250 -21,264 21,018
Income


*) Of which items affecting
comparability

Non- 179 -231 347 5,933
operational
capital
gains/losses,
net
Capital gain, - 15,383 5,453 15,383
Juniper
Pension refund - - - 1,100
Restructuring - -8,000 -15,000 -8,000
costs
Total 179 7,152 -9,200 14,416

Adjusted -4,069 -1,505 -17,894 16,749
operating
income
Adjusted -7.0% -2.2% -8.5% 7.6%
operating
margin
Adjusted -5,110 -2,559 -21,109 14,276
income before
taxes


Proforma format, reflecting results with parts of Phones transferred to
the JV Sony Ericsson Mobile Communications accounted for under the
equity method, and retained parts included in Other operations. No
change in reported total income numbers are made.


ADJUSTED OPERATING INCOME AND OPERATING MARGIN BY SEGMENT BY
QUARTER - PROFORMA
(SEK m.)

2001
Year to date 0103 0106 0109 0112

Systems 1,808 2,382 2,620 2,881
Phones -5,512 -9,964 -13,947 -14,649
Other operations -328 -361 -1,429 -4,410
Unallocated* -331 -642 -1,069 -1,716
Total -4,363 -8,585 -13,825 -17,894

Items affecting
comparability:
- Non-operational 42 3 168 347
capital gains/losses,
net
- Capital gain Juniper 5,453 5,453 5,453 5,453
Networks
- Restructuring costs - -15,000 -15,000 -15,000
Total 5,495 -9,544 -9,379 -9,200

2001
As percentage of Net 0103 0106 0109 0112
Sales

Systems 4% 3% 2% 2%
Phones** - - - -
Other operations -4% -2% -6% -13%
Total -9% -8% -9% -8%

2001
Isolated quarters Q1 Q2 Q3 Q4

Systems 1,808 574 238 261
Phones -5,512 -4,452 -3,983 -702
Other operations -328 -33 -1,068 -2,981
Unallocated* -331 -311 -427 -647
Total -4,363 -4,222 -5,240 -4,069

Items affecting
comparability:
- Non-operational 42 -39 165 179
capital gains/losses,
net
- Capital gain Juniper 5,453 - - -
Networks
- Restructuring costs - -15,000 - -
Total 5,495 -15,039 165 179

2001
As percentage of Net Q1 Q2 Q3 Q4
Sales

Systems 4% 1% 1% 1%
Phones** - - - -
Other operations -4% 0% -17% -27%
Total -9% -8% -11% -7%

* "Unallocated" consists mainly of costs for corporate staffs,
certain goodwill amortization and non-operational gains and losses
**Calculation not
applicable

Proforma format, reflecting results with parts of Phones
transferred to the JV Sony Ericsson Mobile Communications accounted
for under the equity method, and retained parts included in Other
operations. No change in reported total income numbers are made.


ORDERS BOOKED BY SEGMENT BY QUARTER - PROFORMA
(SEK m.)

2001
Year to date 0103 0106 0109 0112
Systems 62,583 113,286 148,561 182,757
of which Mobile 52,625 94,841 125,430 156,370
Systems
Multi-Service Networks 9,958 18,445 23,131 26,387
Other operations 9,227 15,653 20,426 28,498
Less : Intersegment -2,501 -5,198 -7,150 -9,488
sales
Total 69,309 123,741 161,837 201,767

2001
Isolated quarters Q1 Q2 Q3 Q4
Systems 62,583 50,703 35,275 34,196
of which Mobile 52,625 42,216 30,589 30,940
Systems
Multi-Service Networks 9,958 8,487 4,686 3,256
Other operations 9,227 6,426 4,773 8,072
Less : Intersegment -2,501 -2,697 -1,952 -2,338
sales
Total 69,309 54,432 38,096 39,930


NET SALES BY SEGMENT BY QUARTER - PROFORMA
(SEK m.)

2001
Year to date 0103 0106 0109 0112
Systems 44,127 94,843 137,798 187,777
of which Mobile Systems 35,336 76,356 111,923 154,343
Multi-Service Networks 8,791 18,487 25,875 33,434
Other operations 8,247 16,062 22,236 33,381
Less : Intersegment sales -2,614 -5,610 -7,735 -10,321
Total 49,760 105,295 152,299 210,837

2001
Isolated quarters Q1 Q2 Q3 Q4
Systems 44,127 50,716 42,955 49,979
of which Mobile Systems 35,336 41,020 35,567 42,420
Multi-Service Networks 8,791 9,696 7,388 7,559
Other operations 8,247 7,815 6,174 11,145
Less : Intersegment sales -2,614 -2,996 -2,125 -2,586
Total 49,760 55,535 47,004 58,538


NUMBER OF EMPLOYEES BY QUARTER - PROFORMA

2001
0103 0106 0109 0112
Systems 75,081 76,636 71,392 67,898
Other operations 18,615 16,167 15,936 15,861
Unallocated 1,264 1,343 1,344 1,439
Total 94,960 94,146 88,672 85,198




Proforma format, reflecting results with parts of Phones
transferred to the JV Sony Ericsson Mobile Communications accounted
for under the equity method, and retained parts included in Other
operations.

EXTERNAL ORDERS BOOKED BY MARKET AREA AND SEGMENT - PROFORMA
(SEK m.)

Share
Year to date 2001 Systems Other Total of Total
Europe, Middle East & Africa 81,054 11,648 92,702 46%
North America 23,342 1,293 24,635 12%
Latin America 29,171 1,912 31,083 15%
Asia Pacific 48,824 4,523 53,347 27%
Total 182,391 19,376 201,767 100%
Share of Total 90% 10% 100%




EXTERNAL NET SALES BY MARKET AREA AND SEGMENT - PROFORMA
(SEK m.)

Share
Year to date 2001 Systems Other Total of Total
Europe, Middle East & Africa 83,516 13,617 97,133 46%
North America 22,677 2,513 25,190 12%
Latin America 30,090 2,006 32,096 15%
Asia Pacific 51,096 5,322 56,418 27%
Total 187,379 23,458 210,837 100%
Share of Total 89% 11% 100%




TOP 10 MARKETS IN ORDERS AND SALES - PROFORMA

Year to date 2001

Orders Sales

Share of Share of
Total Total Sales
Orders
China 13% China 13%
United States 11% United States 11%
Italy 7% Mexico 6%
Mexico 6% Italy 6%
Brazil 5% United Kingdom 5%
Japan 5% Brazil 5%
Sweden 4% Japan 5%
United Kingdom 4% Spain 4%
Spain 4% Sweden 3%
Germany 4% Turkey 3%


Proforma format, reflecting results with parts of Phones
transferred to the JV Sony Ericsson Mobile Communications accounted
for under the equity method, and retained parts included in Other
operations.