SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN ISSUER
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
April 26, 2012
LM ERICSSON TELEPHONE COMPANY
(Translation of registrants name into English)
Torshamnsgatan 23, Kista
SE-164 83, Stockholm, Sweden
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F x Form 40-F ¨
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ¨ No x
THIS REPORT ON FORM 6-K SHALL BE DEEMED TO BE INCORPORATED BY REFERENCE IN THE REGISTRATION STATEMENT ON FORM F-3 (NO. 333-180880) OF TELEFONAKTIEBOLAGET LM ERICSSON (PUBL.) AND TO BE A PART THEREOF FROM THE DATE ON WHICH THIS REPORT IS FURNISHED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED.
1 |
Ericsson First Quarter Report 2012 |
2 |
Ericsson First Quarter Report 2012 |
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Ericsson First Quarter Report 2012 |
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Ericsson First Quarter Report 2012 |
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Ericsson First Quarter Report 2012 |
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Ericsson First Quarter Report 2012 |
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Ericsson First Quarter Report 2012 |
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Ericsson First Quarter Report 2012 |
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Ericsson First Quarter Report 2012 |
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Ericsson First Quarter Report 2012 |
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Ericsson First Quarter Report 2012 |
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Ericsson First Quarter Report 2012 |
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Ericsson First Quarter Report 2012 |
14 |
CONSOLIDATED INCOME STATEMENT
SEK million |
Jan - Mar 2011 |
2012 | Change | Jan - Dec 2011 |
||||||||||||
Net sales |
52,966 | 50,974 | -4 | % | 226,921 | |||||||||||
Cost of sales |
-32,578 | -33,985 | 4 | % | -147,200 | |||||||||||
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Gross income |
20,388 | 16,989 | -17 | % | 79,721 | |||||||||||
Gross margin (%) |
38.5 | % | 33.3 | % | 35.1 | % | ||||||||||
Research and development expenses |
-7,991 | -8,016 | 0 | % | -32,638 | |||||||||||
Selling and administrative expenses |
-6,441 | -6,232 | -3 | % | -26,683 | |||||||||||
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Operating expenses |
-14,432 | -14,248 | -1 | % | -59,321 | |||||||||||
Other operating income and expenses1) |
343 | 7,749 | 1,278 | |||||||||||||
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Operating income before shares in earnings of JV and associated companies |
6,299 | 10,490 | 67 | % | 21,678 | |||||||||||
Operating margin before shares in earnings of JV and associated companies (%) |
11.9 | % | 20.6 | % | 9.6 | % | ||||||||||
Shares in earnings of JV and associated companies |
-468 | -1,403 | 200 | % | -3,778 | |||||||||||
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Operating income |
5,831 | 9,087 | 56 | % | 17,900 | |||||||||||
Financial income |
302 | 262 | -13 | % | 2,882 | |||||||||||
Financial expenses |
-306 | -273 | -11 | % | -2,661 | |||||||||||
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Income after financial items |
5,827 | 9,076 | 56 | % | 18,121 | |||||||||||
Taxes |
-1,747 | -272 | -5,552 | |||||||||||||
Net income |
4,080 | 8,804 | 116 | % | 12,569 | |||||||||||
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Net income attributable to: |
||||||||||||||||
- Stockholders of the Parent Company |
4,103 | 8,950 | 12,194 | |||||||||||||
- Non-controlling interests |
-23 | -146 | 375 | |||||||||||||
Other information |
||||||||||||||||
Average number of shares, basic (million) |
3,202 | 3,212 | 3,206 | |||||||||||||
Earnings per share, basic (SEK)2) |
1.28 | 2.79 | 3.80 | |||||||||||||
Earnings per share, diluted (SEK)2) |
1.27 | 2.76 | 3.77 |
STATEMENT OF COMPREHENSIVE INCOME
SEK million |
Jan - Mar 2011 |
2012 | Jan - Dec 2011 |
|||||||||
Net income |
4,080 | 8,804 | 12,569 | |||||||||
Other comprehensive income |
||||||||||||
Actuarial gains and losses, and the effect of the asset ceiling, related to pensions |
388 | 436 | -6,963 | |||||||||
Revaluation of other investments in shares and participations |
||||||||||||
Fair value remeasurement |
-1 | | | |||||||||
Cash flow hedges |
||||||||||||
Gains/losses arising during the period |
1,624 | 785 | 996 | |||||||||
Reclassification adjustments for gains/losses included in profit or loss |
-921 | -213 | -2,028 | |||||||||
Adjustments for amounts transferred to initial carrying amount of hedged items |
| 92 | | |||||||||
Changes in cumulative translation adjustments |
-3,417 | -2,004 | -964 | |||||||||
Share of other comprehensive income on JV and associated companies |
-744 | -52 | -262 | |||||||||
Tax on items relating to components of other comprehensive income |
-222 | -392 | 2,158 | |||||||||
Total other comprehensive income |
-3,293 | -1,348 | -7,063 | |||||||||
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Total comprehensive income |
787 | 7,456 | 5,506 | |||||||||
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Total comprehensive income attributable to: |
||||||||||||
Stockholders of the Parent Company |
906 | 7,650 | 5,081 | |||||||||
Non-controlling interests |
-119 | -194 | 425 |
1) | Includes gain on sale of Sony Ericsson SEK 7,691 million in Q1 2012 |
2) | Based on Net income attributable to stockholders of the parent Company |
Ericsson First Quarter Report 2012, April 25 2012 |
15 |
CONSOLIDATED BALANCE SHEET |
SEK million |
Dec 31 2011 |
Mar 31 2012 |
||||||
ASSETS |
||||||||
Non-current assets |
||||||||
Intangible assets |
||||||||
Capitalized development expenses |
3,523 | 3,529 | ||||||
Goodwill |
27,438 | 31,245 | ||||||
Intellectual property rights, brands and other intangible assets |
13,083 | 17,263 | ||||||
Property, plant and equipment |
10,788 | 11,268 | ||||||
Financial assets |
||||||||
Equity in JV and associated companies |
5,965 | 3,271 | ||||||
Other investments in shares and participations |
2,199 | 2,122 | ||||||
Customer financing, non-current |
1,400 | 1,139 | ||||||
Other financial assets, non-current |
4,117 | 5,747 | ||||||
Deferred tax assets |
13,020 | 13,231 | ||||||
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|
|||||
81,533 | 88,815 | |||||||
Current assets |
||||||||
Inventories |
33,070 | 32,546 | ||||||
Trade receivables |
64,522 | 60,695 | ||||||
Customer financing, current |
2,845 | 2,798 | ||||||
Other current receivables |
17,837 | 20,333 | ||||||
Short-term investments 1) |
41,866 | 44,992 | ||||||
Cash and cash equivalents |
38,676 | 30,638 | ||||||
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198,816 | 192,002 | |||||||
Total assets |
280,349 | 280,817 | ||||||
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EQUITY AND LIABILITIES |
||||||||
Equity |
||||||||
Stockholders equity |
143,105 | 150,506 | ||||||
Non-controlling interest in equity of subsidiaries |
2,165 | 1,962 | ||||||
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145,270 | 152,468 | |||||||
Non-current liabilities |
||||||||
Post-employment benefits |
10,016 | 9,339 | ||||||
Provisions, non-current |
280 | 208 | ||||||
Deferred tax liabilities |
2,250 | 3,749 | ||||||
Borrowings, non-current |
23,256 | 22,969 | ||||||
Other non-current liabilities |
2,248 | 2,590 | ||||||
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38,050 | 38,855 | |||||||
Current liabilities |
||||||||
Provisions, current |
5,985 | 5,722 | ||||||
Borrowings, current |
7,765 | 6,229 | ||||||
Trade payables |
25,309 | 22,283 | ||||||
Other current liabilities |
57,970 | 55,260 | ||||||
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|
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97,029 | 89,494 | |||||||
Total equity and liabilities |
280,349 | 280,817 | ||||||
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Of which interest-bearing liabilities and post-employment benefits |
41,037 | 38,537 | ||||||
Of which net cash |
39,505 | 37,093 | ||||||
Assets pledged as collateral |
452 | 403 | ||||||
Contingent liabilities |
609 | 581 |
1) | Including loan to ST-Ericsson of SEK 3,241 (2,759) million |
Ericsson First Quarter Report 2012, April 25 2012 |
16 |
CONSOLIDATED STATEMENT OF CASH FLOWS |
SEK million |
Jan - Mar 2011 |
2012 | Jan - Dec 2011 |
|||||||||
Operating activities |
||||||||||||
Net income |
4,080 | 8,804 | 12,569 | |||||||||
Adjustments to reconcile net income to cash |
||||||||||||
Taxes |
721 | -1,118 | 1,994 | |||||||||
Earnings/dividends in JV and associated companies |
452 | 1,290 | 3,710 | |||||||||
Depreciation, amortization and impairment losses |
2,209 | 2,315 | 9,036 | |||||||||
Other |
-1,201 | -7,022 | -2,127 | |||||||||
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|
|||||||
6,261 | 4,269 | 25,182 | ||||||||||
Changes in operating net assets |
||||||||||||
Inventories |
-3,462 | -59 | -3,243 | |||||||||
Customer financing, current and non-current |
196 | 282 | 74 | |||||||||
Trade receivables |
-1,610 | 3,722 | -1,700 | |||||||||
Trade payables |
-255 | -2,713 | -1,648 | |||||||||
Provisions and post-employment benefits |
-752 | -1,771 | -5,695 | |||||||||
Other operating assets and liabilities, net |
-3,284 | -2,999 | -2,988 | |||||||||
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|
|
|
|
|||||||
-9,167 | -3,538 | -15,200 | ||||||||||
Cash flow from operating activities |
-2,906 | 731 | 9,982 | |||||||||
Investing activities |
||||||||||||
Investments in property, plant and equipment |
-980 | -1,648 | -4,994 | |||||||||
Sales of property, plant and equipment |
97 | 309 | 386 | |||||||||
Acquisitions/divestments of subsidiaries and other operations, net1) |
-455 | -1,730 | -3,128 | |||||||||
Product development |
-269 | -251 | -1,515 | |||||||||
Other investing activities |
179 | 195 | -900 | |||||||||
Short-term investments |
3,706 | -3,999 | 14,692 | |||||||||
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|
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Cash flow from investing activities |
2,278 | -7,124 | 4,541 | |||||||||
Cash flow before financing activities |
-628 | -6,393 | 14,523 | |||||||||
Financing activities |
||||||||||||
Dividends paid |
| | -7,455 | |||||||||
Other financing activities |
1,240 | -1,318 | 961 | |||||||||
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|
|
|||||||
Cash flow from financing activities |
1,240 | -1,318 | -6,494 | |||||||||
Effect of exchange rate changes on cash |
-720 | -327 | -217 | |||||||||
Net change in cash |
-108 | -8,038 | 7,812 | |||||||||
Cash and cash equivalents, beginning of period |
30,864 | 38,676 | 30,864 | |||||||||
Cash and cash equivalents, end of period |
30,756 | 30,638 | 38,676 |
1) | Includes payment of external loan of SEK -6.2 b. attibutable to the acquisition of Telcordia in Q1 2012 |
Ericsson First Quarter Report 2012, April 25 2012 |
17 |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
SEK million |
Jan - Mar 2011 |
Jan - Mar 2012 |
Jan - Dec 2011 |
|||||||||
Opening balance | 146,785 | 145,270 | 146,785 | |||||||||
Total comprehensive income |
787 | 7,456 | 5,506 | |||||||||
Sale/Repurchase of own shares |
23 | 17 | 92 | |||||||||
Stock purchase |
107 | 108 | 413 | |||||||||
Dividends paid |
| | -7,455 | |||||||||
Transactions with non-controlling interests |
| -384 | -71 | |||||||||
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|
|
|
|
|||||||
Closing balance | 147,702 | 152,467 | 145,270 | |||||||||
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|
Ericsson First Quarter Report 2012, April 25 2012 |
18 |
CONSOLIDATED INCOME STATEMENT ISOLATED QUARTERS
2011 |
2012 | |||||||||||||||||||
Isolated quarters, SEK million |
Q1 | Q2 | Q3 | Q4 | Q1 | |||||||||||||||
Net sales |
52,966 | 54,770 | 55,518 | 63,667 | 50,974 | |||||||||||||||
Cost of sales |
-32,578 | -34,064 | -36,095 | -44,463 | -33,985 | |||||||||||||||
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|
|||||||||||
Gross income |
20,388 | 20,706 | 19,423 | 19,204 | 16,989 | |||||||||||||||
Gross margin (%) |
38.5% | 37.8% | 35.0% | 30.2% | 33.3% | |||||||||||||||
Research and development expenses |
-7,991 | -8,108 | -7,824 | -8,715 | -8,016 | |||||||||||||||
Selling and administrative expenses |
-6,441 | -7,741 | -5,664 | -6,837 | -6,232 | |||||||||||||||
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|
|
|
|||||||||||
Operating expenses |
-14,432 | -15,849 | -13,488 | -15,552 | -14,248 | |||||||||||||||
Other operating income and expenses 1) |
343 | 166 | 366 | 403 | 7,749 | |||||||||||||||
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|
|||||||||||
Operating income before shares in earnings of JV and associated companies |
6,299 | 5,023 | 6,301 | 4,055 | 10,490 | |||||||||||||||
Operating margin before shares in earnings of JV and associated companies (%) |
11.9% | 9.2% | 11.3% | 6.4% | 20.6% | |||||||||||||||
Shares in earnings of JV and associated companies |
-468 | -771 | -640 | -1,899 | -1,403 | |||||||||||||||
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|||||||||||
Operating income |
5,831 | 4,252 | 5,661 | 2,156 | 9,087 | |||||||||||||||
Financial income |
302 | 977 | 1,198 | 405 | 262 | |||||||||||||||
Financial expenses |
-306 | -636 | -987 | -732 | -273 | |||||||||||||||
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Income after financial items |
5,827 | 4,593 | 5,872 | 1,829 | 9,076 | |||||||||||||||
Taxes |
-1,747 | -1,377 | -2,090 | -338 | -272 | |||||||||||||||
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Net income |
4,080 | 3,216 | 3,782 | 1,491 | 8,804 | |||||||||||||||
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|||||||||||
Net income attributable to: |
||||||||||||||||||||
- Stockholders of the Parent Company |
4,103 | 3,116 | 3,821 | 1,154 | 8,950 | |||||||||||||||
- Non-controlling interests |
-23 | 100 | -39 | 337 | -146 | |||||||||||||||
Other information |
||||||||||||||||||||
Average number of shares, basic (million) |
3,202 | 3,204 | 3,207 | 3,209 | 3,212 | |||||||||||||||
Earnings per share, basic (SEK)2) |
1.28 | 0.97 | 1.19 | 0.36 | 2.79 | |||||||||||||||
Earnings per share, diluted (SEK)2) |
1.27 | 0.96 | 1.18 | 0.36 | 2.76 |
1) | Includes gain on sale of Sony Ericsson SEK 7,691 million in Q1 2012 |
2) | Based on Net income attributable to stockholders of the Parent Company |
Ericsson First Quarter Report 2012, April 25 2012 |
19 |
CONSOLIDATED STATEMENT OF CASH FLOWS - ISOLATED QUARTERS
2011 |
2012 | |||||||||||||||||||
Isolated quarters, SEK million |
Q1 | Q2 | Q3 | Q4 | Q1 | |||||||||||||||
Operating activities |
||||||||||||||||||||
Net income |
4,080 | 3,216 | 3,782 | 1,491 | 8,804 | |||||||||||||||
Adjustments to reconcile net income to cash |
||||||||||||||||||||
Taxes |
721 | -29 | 550 | 752 | -1,118 | |||||||||||||||
Earnings/dividends in JV and associated companies |
452 | 783 | 658 | 1,817 | 1,290 | |||||||||||||||
Depreciation, amortization and impairment losses |
2,209 | 2,172 | 2,227 | 2,428 | 2,315 | |||||||||||||||
Other |
-1,201 | -1,107 | -291 | 472 | -7,022 | |||||||||||||||
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|
|||||||||||
6,261 | 5,035 | 6,926 | 6,960 | 4,269 | ||||||||||||||||
Changes in operating net assets |
||||||||||||||||||||
Inventories |
-3,462 | -2,370 | -2,619 | 5,208 | -59 | |||||||||||||||
Customer financing, current and non-current |
196 | 195 | -607 | 290 | 282 | |||||||||||||||
Trade receivables |
-1,610 | 2,114 | -2,769 | 565 | 3,722 | |||||||||||||||
Trade payables |
-255 | -834 | -805 | 246 | -2,713 | |||||||||||||||
Provisions and post-employment benefits |
-752 | -485 | -2,180 | -2,278 | -1,771 | |||||||||||||||
Other operating assets and liabilities, net |
-3,284 | 2,126 | 3,694 | -5,524 | -2,999 | |||||||||||||||
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|
|||||||||||
-9,167 | 746 | -5,286 | -1,493 | -3,538 | ||||||||||||||||
Cash flow from operating activities |
-2,906 | 5,781 | 1,640 | 5,467 | 731 | |||||||||||||||
Investing activities |
||||||||||||||||||||
Investments in property, plant and equipment |
-980 | -1,196 | -1,294 | -1,524 | -1,648 | |||||||||||||||
Sales of property, plant and equipment |
97 | 58 | 59 | 172 | 309 | |||||||||||||||
Acquisitions/divestments of subsidiaries and other operations, net 1) |
-455 | -507 | -1,931 | -235 | -1,730 | |||||||||||||||
Product development |
-269 | -429 | -257 | -560 | -251 | |||||||||||||||
Other investing activities |
179 | -100 | -769 | -210 | 195 | |||||||||||||||
Short-term investments |
3,706 | 3,196 | 9,323 | -1,533 | -3,999 | |||||||||||||||
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|
|
|
|||||||||||
Cash flow from investing activities |
2,278 | 1,022 | 5,131 | -3,890 | -7,124 | |||||||||||||||
Cash flow before financing activities |
-628 | 6,803 | 6,771 | 1,577 | -6,393 | |||||||||||||||
Financing activities |
||||||||||||||||||||
Dividends paid |
| -7,209 | -241 | -5 | | |||||||||||||||
Other financing activities |
1,240 | -1,097 | -10 | 828 | -1,318 | |||||||||||||||
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|
|
|
|
|
|
|
|||||||||||
Cash flow from financing activities |
1,240 | -8,306 | -251 | 823 | -1,318 | |||||||||||||||
Effect of exchange rate changes on cash |
-720 | 211 | 278 | 14 | -327 | |||||||||||||||
Net change in cash |
-108 | -1,292 | 6,798 | 2,414 | -8,038 | |||||||||||||||
Cash and cash equivalents, beginning of period |
30,864 | 30,756 | 29,464 | 36,262 | 38,676 | |||||||||||||||
Cash and cash equivalents, end of period |
30,756 | 29,464 | 36,262 | 38,676 | 30,638 |
1) | Includes payment of external loan of SEK -6.2 b. attibutable to the acquisition of Telcordia in Q1 2012 |
Ericsson First Quarter Report 2012, April 25 2012 |
20 |
The Group
This interim report is prepared in accordance with IAS 34. The term IFRS used in this document refers to the application of IAS and IFRS as well as interpretations of these standards as issued by IASBs Standards Interpretation Committee (SIC) and IFRS Interpretations Committee, (IFRIC). The accounting policies adopted are consistent with those of the annual report for the year ended December 31, 2011, and should be read in conjunction with that annual report.
As from January 1, 2012, the Company has applied the following new or amended IFRSs and IFRICs:
| Amendment to IAS 12, income taxes: on deferred tax: recovery of underlying assets (not yet endorsed by the EU) |
| Amendments to IFRS 7, Financial instruments Disclosures: Transfers of Financial Assets |
None of the new or amended standards and interpretations has had any significant impact on the financial result or position of the Company. There is no difference between IFRS effective as per March 31, 2012 and IFRS as endorsed by the EU, except for IAS 12 above.
Ericsson First Quarter Report 2012, April 25 2012 |
21 |
NET SALES BY SEGMENT BY QUARTER
Segments Sony Ericsson and ST-Ericsson are reported in accordance with the equity method, thus their sales are not included.
2011 |
2012 | |||||||||||||||||||
Isolated quarters, SEK million |
Q1 | Q2 | Q3 | Q4 | Q1 | |||||||||||||||
Networks |
33,249 | 33,360 | 32,506 | 33,280 | 27,314 | |||||||||||||||
Global Services |
17,435 | 19,036 | 20,438 | 26,975 | 20,631 | |||||||||||||||
Of which Professional Services |
12,571 | 13,463 | 14,719 | 18,081 | 14,884 | |||||||||||||||
Of which Managed Services |
4,924 | 4,724 | 5,304 | 6,046 | 5,708 | |||||||||||||||
Of which Network Rollout |
4,864 | 5,573 | 5,719 | 8,894 | 5,747 | |||||||||||||||
Support Solutions |
2,282 | 2,374 | 2,574 | 3,412 | 3,029 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
52,966 | 54,770 | 55,518 | 63,667 | 50,974 | |||||||||||||||
|
|
|
|
|
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|
|
|
|||||||||||
2011 |
2012 | |||||||||||||||||||
Sequential change, percent |
Q1 | Q2 | Q3 | Q4 | Q1 | |||||||||||||||
Networks |
-9% | 0% | -3% | 2% | -18% | |||||||||||||||
Global Services |
-24% | 9% | 7% | 32% | -24% | |||||||||||||||
Of which Professional Services |
-25% | 7% | 9% | 23% | -18% | |||||||||||||||
Of which Managed Services |
-8% | -4% | 12% | 14% | -6% | |||||||||||||||
Of which Network Rollout |
-21% | 15% | 3% | 56% | -35% | |||||||||||||||
Support Solutions |
-34% | 4% | 8% | 33% | -11% | |||||||||||||||
|
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|
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|
|
|
|
|||||||||||
Total |
-16% | 3% | 1% | 15% | -20% | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
2011 |
2012 | |||||||||||||||||||
Year over year change, percent |
Q1 | Q2 | Q3 | Q4 | Q1 | |||||||||||||||
Networks |
35% | 31% | 25% | -9% | -18% | |||||||||||||||
Global Services |
-4% | -5% | 7% | 18% | 18% | |||||||||||||||
Of which Professional Services |
-5% | -9% | 7% | 8% | 18% | |||||||||||||||
Of which Managed Services |
1% | -16% | 1% | 13% | 16% | |||||||||||||||
Of which Network Rollout |
0% | 6% | 7% | 44% | 18% | |||||||||||||||
Support Solutions |
-1% | -2% | 11% | -2% | 33% | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
17% | 14% | 17% | 1% | -4% | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
2011 |
2012 | |||||||||||||||||||
Year to date, SEK million |
Jan - Mar | Jan - Jun | Jan - Sep | Jan - Dec | Jan - Mar | |||||||||||||||
Networks |
33,249 | 66,609 | 99,115 | 132,395 | 27,314 | |||||||||||||||
Global Services |
17,435 | 36,471 | 56,909 | 83,884 | 20,631 | |||||||||||||||
Of which Professional Services |
12,571 | 26,034 | 40,753 | 58,834 | 14,884 | |||||||||||||||
Of which Managed Services |
4,924 | 9,648 | 14,952 | 20,998 | 5,708 | |||||||||||||||
Of which Network Rollout |
4,864 | 10,437 | 16,156 | 25,050 | 5,747 | |||||||||||||||
Support Solutions |
2,282 | 4,656 | 7,230 | 10,642 | 3,029 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
52,966 | 107,736 | 163,254 | 226,921 | 50,974 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Year to date, | 2011 |
2012 | ||||||||||||||||||
year over year change, percent |
Jan - Mar | Jan - Jun | Jan - Sep | Jan - Dec | Jan - Mar | |||||||||||||||
Networks |
35 | % | 33 | % | 30 | % | 17 | % | -18 | % | ||||||||||
Global Services |
-4 | % | -4 | % | -1 | % | 5 | % | 18 | % | ||||||||||
Of which Professional Services |
-5 | % | -7 | % | -3 | % | 1 | % | 18 | % | ||||||||||
Of which Managed Services |
1 | % | -8 | % | -5 | % | -1 | % | 16 | % | ||||||||||
Of which Network Rollout |
0 | % | 3 | % | 5 | % | 16 | % | 18 | % | ||||||||||
Support Solutions |
-1 | % | -2 | % | 3 | % | 1 | % | 33 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
17 | % | 16 | % | 16 | % | 12 | % | -4 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
Ericsson First Quarter Report 2012, April 25 2012 |
22 |
OPERATING INCOME BY SEGMENT BY QUARTER
2011 |
2012 | |||||||||||||||||||
Isolated quarters, SEK million |
Q1 | Q2 | Q3 | Q4 | Q1 | |||||||||||||||
Networks |
5,744 | 4,599 | 4,277 | 2,675 | 1,649 | |||||||||||||||
Global Services |
1,146 | 1,030 | 1,757 | 1,611 | 1,267 | |||||||||||||||
Of which Professional Services |
1,486 | 1,661 | 2,023 | 2,498 | 1,908 | |||||||||||||||
Of which Network Rollout |
-340 | -631 | -266 | -887 | -641 | |||||||||||||||
Support Solutions |
-338 | -267 | 90 | 11 | -28 | |||||||||||||||
Unallocated 1) |
-228 | -204 | 164 | -233 | -97 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Subtotal Segments excluding Sony Ericsson and ST-Ericsson |
6,324 | 5,158 | 6,288 | 4,064 | 2,791 | |||||||||||||||
Sony Ericsson 2) |
71 | -208 | 75 | -1,137 | 7,691 | |||||||||||||||
ST-Ericsson |
-564 | -698 | -702 | -771 | -1,395 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Subtotal Sony Ericsson and ST-Ericsson |
-493 | -906 | -627 | -1,908 | 6,296 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
5,831 | 4,252 | 5,661 | 2,156 | 9,087 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
2011 |
2012 | |||||||||||||||||||
Year to date, SEK million |
Jan - Mar | Jan - Jun | Jan - Sep | Jan - Dec | Jan - Mar | |||||||||||||||
Networks |
5,744 | 10,343 | 14,620 | 17,295 | 1,649 | |||||||||||||||
Global Services |
1,146 | 2,176 | 3,933 | 5,544 | 1,267 | |||||||||||||||
Of which Professional Services |
1,486 | 3,147 | 5,170 | 7,668 | 1,908 | |||||||||||||||
Of which Network Rollout |
-340 | -971 | -1,237 | -2,124 | -641 | |||||||||||||||
Support Solutions |
-338 | -605 | -515 | -504 | -28 | |||||||||||||||
Unallocated 1) |
-228 | -432 | -268 | -501 | -97 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Subtotal Segments excluding Sony Ericsson and ST-Ericsson |
6,324 | 11,482 | 17,770 | 21,834 | 2,791 | |||||||||||||||
Sony Ericsson 2) |
71 | -137 | -62 | -1,199 | 7,691 | |||||||||||||||
ST-Ericsson |
-564 | -1,262 | -1,964 | -2,735 | -1,395 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Subtotal Sony Ericsson and ST-Ericsson |
-493 | -1,399 | -2,026 | -3,934 | 6,296 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
5,831 | 10,083 | 15,744 | 17,900 | 9,087 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
As percentage of net sales, | 2011 |
2012 | ||||||||||||||||||
isolated quarters |
Q1 | Q2 | Q3 | Q4 | Q1 | |||||||||||||||
Networks |
17 | % | 14 | % | 13 | % | 8 | % | 6 | % | ||||||||||
Global Services |
7 | % | 5 | % | 9 | % | 6 | % | 6 | % | ||||||||||
Of which Professional Services |
12 | % | 12 | % | 14 | % | 14 | % | 13 | % | ||||||||||
Of which Network Rollout |
-7 | % | -11 | % | -5 | % | -10 | % | -11 | % | ||||||||||
Support Solutions |
-15 | % | -11 | % | 3 | % | 0 | % | -1 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Subtotal excluding Sony Ericsson and ST-Ericsson |
12 | % | 9 | % | 11 | % | 6 | % | 5 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
As percentage of net sales, | 2011 |
2012 | ||||||||||||||||||
Year to date |
Jan-Mar | Jan-Jun | Jan-Sep | Jan-Dec | Jan-Mar | |||||||||||||||
Networks |
17 | % | 16 | % | 15 | % | 13 | % | 6 | % | ||||||||||
Global Services |
7 | % | 6 | % | 7 | % | 7 | % | 6 | % | ||||||||||
Of which Professional Services |
12 | % | 12 | % | 13 | % | 13 | % | 13 | % | ||||||||||
Of which Network Rollout |
-7 | % | -9 | % | -8 | % | -8 | % | -11 | % | ||||||||||
Support Solutions |
-15 | % | -13 | % | -7 | % | -5 | % | -1 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Subtotal excluding Sony Ericsson and ST-Ericsson |
12 | % | 11 | % | 11 | % | 10 | % | 5 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
1) | Unallocated consists mainly of costs for corporate staff. Non-operational capital gains and losses |
2) | Gain on sale of Sony Ericsson in SEK 7,691 million in Q1 2012 |
Ericsson First Quarter Report 2012, April 25 2012 |
23 |
NET SALES BY REGION BY QUARTER
2011 | 2012 | |||||||||||||||||||
Isolated quarters, SEK million |
Q1 | Q2 | Q3 | Q4 | Q1 | |||||||||||||||
North America |
13,162 | 12,324 | 12,096 | 11,203 | 12,775 | |||||||||||||||
Latin America |
4,015 | 4,927 | 6,012 | 7,028 | 4,822 | |||||||||||||||
Northern Europe & Central Asia 1) 2) |
3,365 | 4,552 | 3,527 | 3,781 | 2,292 | |||||||||||||||
Western & Central Europe 2) |
4,806 | 4,342 | 4,612 | 5,270 | 4,306 | |||||||||||||||
Mediterranean2) |
4,799 | 5,543 | 5,225 | 8,240 | 4,620 | |||||||||||||||
Middle East |
3,070 | 3,546 | 3,650 | 5,195 | 3,157 | |||||||||||||||
Sub Saharan Africa |
2,212 | 2,214 | 2,519 | 3,218 | 2,200 | |||||||||||||||
India |
3,169 | 2,798 | 2,273 | 1,522 | 1,421 | |||||||||||||||
China & North East Asia |
8,633 | 9,025 | 9,662 | 10,889 | 9,154 | |||||||||||||||
South East Asia & Oceania |
3,108 | 3,033 | 3,720 | 4,009 | 3,374 | |||||||||||||||
Other 1)2) |
2,627 | 2,466 | 2,222 | 3,312 | 2,853 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
52,966 | 54,770 | 55,518 | 63,667 | 50,974 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
1) Of which Sweden |
927 | 1,103 | 944 | 908 | 834 | |||||||||||||||
2) Of which EU |
10,020 | 10,317 | 10,195 | 13,428 | 9,502 | |||||||||||||||
2011 | 2012 | |||||||||||||||||||
Sequential change, percent |
Q1 | Q2 | Q3 | Q4 | Q1 | |||||||||||||||
North America |
-6 | % | -6 | % | -2 | % | -7 | % | 14 | % | ||||||||||
Latin America |
-34 | % | 23 | % | 22 | % | 17 | % | -31 | % | ||||||||||
Northern Europe & Central Asia 1) 2) |
-30 | % | 35 | % | -23 | % | 7 | % | -39 | % | ||||||||||
Western & Central Europe 2) |
-19 | % | -10 | % | 6 | % | 14 | % | -18 | % | ||||||||||
Mediterranean 2) |
-31 | % | 16 | % | -6 | % | 58 | % | -44 | % | ||||||||||
Middle East |
-34 | % | 16 | % | 3 | % | 42 | % | -39 | % | ||||||||||
Sub Saharan Africa |
9 | % | 0 | % | 14 | % | 28 | % | -32 | % | ||||||||||
India |
11 | % | -12 | % | -19 | % | -33 | % | -7 | % | ||||||||||
China & North East Asia |
-9 | % | 5 | % | 7 | % | 13 | % | -16 | % | ||||||||||
South East Asia & Oceania |
-21 | % | -2 | % | 23 | % | 8 | % | -16 | % | ||||||||||
Other 1)2) |
25 | % | -6 | % | -10 | % | 49 | % | -14 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
-16 | % | 3 | % | 1 | % | 15 | % | -20 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
1) Of which Sweden |
-21 | % | 19 | % | -14 | % | -4 | % | -8 | % | ||||||||||
2) Of which EU |
-20 | % | 3 | % | -1 | % | 32 | % | -29 | % | ||||||||||
2011 | 2012 | |||||||||||||||||||
Year-over-year change, percent |
Q1 | Q2 | Q3 | Q4 | Q1 | |||||||||||||||
North America |
39 | % | -6 | % | -6 | % | -20 | % | -3 | % | ||||||||||
Latin America |
1 | % | 17 | % | 64 | % | 16 | % | 20 | % | ||||||||||
Northern Europe & Central Asia 1) 2) |
46 | % | 70 | % | 49 | % | -22 | % | -32 | % | ||||||||||
Western & Central Europe 2) |
-8 | % | -2 | % | 7 | % | -11 | % | -10 | % | ||||||||||
Mediterranean 2) |
-5 | % | -2 | % | 4 | % | 19 | % | -4 | % | ||||||||||
Middle East |
-22 | % | -7 | % | 34 | % | 12 | % | 3 | % | ||||||||||
Sub Saharan Africa |
-9 | % | -25 | % | 40 | % | 59 | % | -1 | % | ||||||||||
India |
38 | % | 107 | % | 7 | % | -46 | % | -55 | % | ||||||||||
China & North East Asia |
74 | % | 96 | % | 39 | % | 15 | % | 6 | % | ||||||||||
South East Asia & Oceania |
-12 | % | -17 | % | -3 | % | 2 | % | 9 | % | ||||||||||
Other 1) 2) |
37 | % | 49 | % | 19 | % | 57 | % | 9 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
17 | % | 14 | % | 17 | % | 1 | % | -4 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
1) Of which Sweden |
-11 | % | 11 | % | -8 | % | -22 | % | -10 | % | ||||||||||
2) Of which EU |
-9 | % | -1 | % | 5 | % | 7 | % | -5 | % |
Ericsson First Quarter Report 2012, April 25 2012 |
24 |
NET SALES BY REGION BY QUARTER (continued)
Ericsson First Quarter Report 2012, April 25 2012 |
25 |
NET SALES BY REGION BY SEGMENT
Since the segments Sony Ericsson and ST-Ericsson are reported in accordance with the equity method, their sales are not included below. Net sales related to these segments are disclosed under SEGMENT RESULTS. Net sales related to other segments are set out below.
Revenue from Telcordia is reported 50/50 between Segments Global Services and Support Solutions. In the regional dimension, all of Telcordia sales is reported in Support Solutions, except for North America where it is split 50/50. Multimedia brokering (IPX) was previously reported in each region in Segment Support Solutions, from Q112 it is part of region Other in Segment Support Solutions.
Q1, SEK million | Accumulated Jan -Mar 2012, SEK million | |||||||||||||||||||||||||||||||
Isolated quarter 2012 |
Net- works |
Global Services |
Support Solutions |
Total | Net- works |
Global Services |
Support Solutions |
Total | ||||||||||||||||||||||||
North America |
7,485 | 4,702 | 588 | 12,775 | 7,485 | 4,702 | 588 | 12,775 | ||||||||||||||||||||||||
Latin America |
2,064 | 2,524 | 234 | 4,822 | 2,064 | 2,524 | 234 | 4,822 | ||||||||||||||||||||||||
Northern Europe & Central Asia |
1,192 | 1,020 | 80 | 2,292 | 1,192 | 1,020 | 80 | 2,292 | ||||||||||||||||||||||||
Western & Central Europe |
1,535 | 2,576 | 195 | 4,306 | 1,535 | 2,576 | 195 | 4,306 | ||||||||||||||||||||||||
Mediterranean |
2,026 | 2,424 | 170 | 4,620 | 2,026 | 2,424 | 170 | 4,620 | ||||||||||||||||||||||||
Middle East |
1,317 | 1,652 | 188 | 3,157 | 1,317 | 1,652 | 188 | 3,157 | ||||||||||||||||||||||||
Sub Saharan Africa |
1,257 | 793 | 150 | 2,200 | 1,257 | 793 | 150 | 2,200 | ||||||||||||||||||||||||
India |
660 | 623 | 138 | 1,421 | 660 | 623 | 138 | 1,421 | ||||||||||||||||||||||||
China & North East Asia |
6,280 | 2,752 | 122 | 9,154 | 6,280 | 2,752 | 122 | 9,154 | ||||||||||||||||||||||||
South East Asia & Oceania |
1,820 | 1,418 | 136 | 3,374 | 1,820 | 1,418 | 136 | 3,374 | ||||||||||||||||||||||||
Other |
1,678 | 147 | 1,028 | 2,853 | 1,678 | 147 | 1,028 | 2,853 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total |
27,314 | 20,631 | 3,029 | 50,974 | 27,314 | 20,631 | 3,029 | 50,974 | ||||||||||||||||||||||||
Share of Total |
54 | % | 40 | % | 6 | % | 100 | % | 54 | % | 40 | % | 6 | % | 100 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 2012 | ||||||||||||||||
Sequential change, percent |
Net- works |
Global Services |
Support Solutions |
Total | ||||||||||||
North America |
49 | % | -18 | % | 29 | % | 14 | % | ||||||||
Latin America |
-37 | % | -26 | % | -27 | % | -31 | % | ||||||||
Northern Europe & Central Asia |
-26 | % | -50 | % | -38 | % | -39 | % | ||||||||
Western & Central Europe |
-28 | % | -10 | % | -33 | % | -18 | % | ||||||||
Mediterranean |
-46 | % | -39 | % | -68 | % | -44 | % | ||||||||
Middle East |
-45 | % | -28 | % | -62 | % | -39 | % | ||||||||
Sub Saharan Africa |
-34 | % | -26 | % | -36 | % | -32 | % | ||||||||
India |
2 | % | -23 | % | 116 | % | -7 | % | ||||||||
China & North East Asia |
-15 | % | -17 | % | -47 | % | -16 | % | ||||||||
South East Asia & Oceania |
-17 | % | -12 | % | -36 | % | -16 | % | ||||||||
Other |
-44 | % | -201 | % | 129 | % | -14 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
-18 | % | -24 | % | -11 | % | -20 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Q1 2012 | ||||||||||||||||
Year over year change, percent |
Net- works |
Global Services |
Support Solutions |
Total | ||||||||||||
North America |
-18 | % | 22 | % | 137 | % | -3 | % | ||||||||
Latin America |
3 | % | 40 | % | 10 | % | 20 | % | ||||||||
Northern Europe & Central Asia |
-50 | % | 22 | % | -37 | % | -32 | % | ||||||||
Western & Central Europe |
-29 | % | 6 | % | -11 | % | -10 | % | ||||||||
Mediterranean |
-10 | % | 7 | % | -39 | % | -4 | % | ||||||||
Middle East |
-21 | % | 29 | % | 48 | % | 3 | % | ||||||||
Sub Saharan Africa |
5 | % | -6 | % | -14 | % | -1 | % | ||||||||
India |
-71 | % | -12 | % | -23 | % | -55 | % | ||||||||
China & North East Asia |
-3 | % | 34 | % | 9 | % | 6 | % | ||||||||
South East Asia & Oceania |
6 | % | 16 | % | -15 | % | 9 | % | ||||||||
Other |
-17 | % | -13 | % | 134 | % | 9 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
-18 | % | 18 | % | 33 | % | -4 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Jan - Mar 2012 | ||||||||||||||||
Year over year change, percent |
Net- works |
Global Services |
Support Solutions |
Total | ||||||||||||
North America |
-18 | % | 22 | % | 137 | % | -3 | % | ||||||||
Latin America |
3 | % | 40 | % | 10 | % | 20 | % | ||||||||
Northern Europe & Central Asia |
-50 | % | 22 | % | -37 | % | -32 | % | ||||||||
Western & Central Europe |
-29 | % | 6 | % | -11 | % | -10 | % | ||||||||
Mediterranean |
-10 | % | 7 | % | -39 | % | -4 | % | ||||||||
Middle East |
-21 | % | 29 | % | 48 | % | 3 | % | ||||||||
Sub Saharan Africa |
5 | % | -6 | % | -14 | % | -1 | % | ||||||||
India |
-71 | % | -12 | % | -23 | % | -55 | % | ||||||||
China & North East Asia |
-3 | % | 34 | % | 9 | % | 6 | % | ||||||||
South East Asia & Oceania |
6 | % | 16 | % | -15 | % | 9 | % | ||||||||
Other |
-17 | % | -13 | % | 134 | % | 9 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
-18 | % | 18 | % | 33 | % | -4 | % | ||||||||
|
|
|
|
|
|
|
|
Ericsson First Quarter Report 2012, April 25 2012 |
26 |
2011 | 2012 | |||||||||||||||||||
Isolated quarters, SEK million |
Q1 | Q2 | Q3 | Q4 | Q1 | |||||||||||||||
Opening balance |
9,744 | 9,529 | 9,335 | 8,065 | 6,265 | |||||||||||||||
Additions |
1,304 | 2,032 | 633 | 838 | 1,003 | |||||||||||||||
Utilization/Cash out |
-1,091 | -1,908 | -1,464 | -1,524 | -980 | |||||||||||||||
Of which restructuring |
-762 | -1,220 | -747 | -494 | -401 | |||||||||||||||
Reversal of excess amounts |
-88 | -451 | -556 | -824 | -370 | |||||||||||||||
Reclassification, translation difference and other |
-340 | 133 | 117 | -290 | 12 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Closing balance |
9,529 | 9,335 | 8,065 | 6,265 | 5,930 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
2011 | 2012 |
|||||||||||||||||||
Year to date, SEK million |
Jan - Mar | Jan -Jun | Jan - Sep | Jan - Dec | Jan - Mar | |||||||||||||||
Opening balance |
9,744 | 9,744 | 9,744 | 9,744 | 6,265 | |||||||||||||||
Additions |
1,304 | 3,336 | 3,969 | 4,807 | 1,003 | |||||||||||||||
Utilization/Cash out |
-1,091 |