C.M.D.N.Y. Capital Markets Day New York

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1 C.M.D.N.Y. Capital Markets Day New York Embassy Suites Hotel 102 North End Avenue, NY May

2 C.M.D.N.Y. Capital Markets Day New York May 10, 2006 Carl-Henric Svanberg President and Chief Executive Officer

3 Exciting industry momentum More - Broadband everywhere HSPA creates true mobile broadband Integration with media enabled by broadband and all-ip For more Over 3 billion mobile subscribers in 2007 Some 85% of future growth from emerging mobile markets More cost-efficient solutions continuously expands the market Consolidation Big are getting bigger Seeking scale and preparing for convergence and triple play Increased focus on total cost of ownership Towards an all-communicating world

4 Mobile subscription development Emerging markets contribute to main part of growth Global Cellular Active Subscriptions by Region (00-11) active subscriptions (million) Latin America Eastern Europe, Middle East & Africa Rest of APAC India China (ex. HK) Japan North America Western Europe 85% of net additions come from emerging markets Year End

5 Mobile voice traffic development 20 Mobile Voice Traffic Development Total MoU (00-11) voice traffic (tera minutes) Latin America Eastern Europe, Middle East & Africa Asia Pacific North America Western Europe

6 Broadband lines Fast growth continues for broadband Broadband Lines by Region (00-11) Broadband Lines (00-11) LAM 500 WLL 400 CEMA 400 million Ro APAC China & India million Cable Fiber NAM 100 WE 100 DSL Year End Year End

7 Broadband Driving growth in core and transmission Deployments of mobile broadband accelerate Rapid growth of fixed broadband continues Increases need for core connectivity and capacity Drives strong demand for transport/transmission

8 Ericsson s position The prime driver in an all-communicating world The leader in mobile networks/mobile broadband HSPA over four continents investments in GSM still strong A leader in Next Generation Networks Softswitch and IMS Marconi adds considerable strength Creating a leader in transmission and broadband access Leader in telecom services 21,000 in 140 countries managed, support, system integration Strong e2e offering - leading mobile terminal technology Sony Ericsson and Ericsson Mobile Platforms Creating the world s most successful communication companies

9 Next Generation Networks Broadband, optical, microwave, softswitch, datacom USM Service Network Charging Appl TeS MGCF IMS MGCF IP Core BB access MGW AE Metro Network WLAN MGW RNC Wireline access BSC 2/3G/ Evolved 3G

10 Integration of Marconi assets Acquisition well received by customers Strategic rationale, products and competence Business flow stronger than expected New contracts with TIM, Telefónica, Vodafone, France Telecom Restructuring running at full speed 350 employees notified 1,250 more to be notified Q2 and Q3 SEK ~ 2 b. restructuring costs to be taken as incurred SEK ~ 2 b. in annualized cost savings by YE06 Supply chain savings primarily by YE07 Enhanced position in transmission and broadband access

11 Q1 financial highlights Sales SEK 39.2 (31.5) b. Up 24% YoY (15% excl. Marconi) - Services up 60% Gross margin 43.3% (48.5%*) Down 0.9% sequentially - strong service growth and Marconi Operating income SEK 6.6 (6.6) b. SEK 7.0 (6.6) b. before Marconi amortization of intangibles Operating margin ~20% in Ericsson excluding Marconi *Q105 margin boosted by high software sales

12 Regional distribution is a strength Ericsson sales Q106 (BSEK) and growth (%) YoY Western Europe 11.2 b. +13% Eastern Europe, Middle East & Africa 10.5 b. +21% North America 5.3 b. +58% Latin America 3.7 b. +3% Asia Pacific 8.5 b. +44%

13 Sony Ericsson Mobile Communications The industry s most exciting product portfolio Trendsetter: design, camera, music player, etc. Strong market position Premium ASP 149 vs. 109 for the industry Leveraging the assets of the parents Sony s brands and knowledge Walkman and Cybershot Ericsson s technology and customer base A truly successful joint venture

14 Sony Ericsson and EMP Enables true e2e solutions EMP A leader in mobile platforms HSPA available now - all platforms IMS-capable Faster time to market for advanced handsets Broadens the variety of handsets and handset vendors Sony Ericsson - Completes our full e2e offering Enhanced consumer understanding Ability to drive new market trends: Camera, music, mobile TV Strengthens our strategic relationship with Sony Two market-leading businesses with strong potential

15 Market outlook 2006 Global mobile systems market in USD expected to show moderate growth* Addressable market for professional services expected to show good growth* Well positioned to capture market opportunities *All estimates refer to market growth compared to previous year. This slide contains forward looking statements.

16 Our way forward Leveraging our leading position Expand footprint with leading technologies Mobile systems new networks, new positions Build leadership in converging networks R&D and bolt on acquisitions Grow in broadband and transmission networks Marconi paving the way Continue to expand professional services Business with exciting potential, e.g. managed services Investing for growth while maintaining best-in-class margins

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