Diversity is beautiful

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1 Diversity is beautiful 2015 Supplier Diversity Annual Report

2 Diversity is beautiful In 2015, Ericsson expanded the supplier diversity program as it became a front line commercial function, with an executive strategic approach. For the third year in a row we held our supplier diversity matchmaker event where we offered a mentorship program, workshops and seminars, tier-two diversity reporting portal and provided scholarships and growth opportunities for diverse suppliers. Ericsson is committed to providing a best-in-class supplier diversity program by developing mutually beneficial relationships, top-level collaboration, innovation and execution within minority business enterprises (MBE), women business enterprises (WBE) and disabled veteran enterprises (DVBE). Ericsson s supplier diversity program was recognized by many institutions during The Black E.O.E Journal, AT&T, The Professional Woman s Magazine and The DF/W Minority Development Council were some of the organizations that acknowledged our program success last year. Eric Imrie, Vice President Strategic Sourcing, is a board member of the DF/W Minority Supplier Diversity Council (MSDC). Aileen Rivera, Head of Sourcing Business Services for North America and Latin America is a board member of the Greater Dallas Hispanic Chamber of Commerce (GDHCC). Ericsson Strategic Sourcing Team Oscar Perez (Head of Sourcing Business Partners), Aileen Rivera (Head of Sourcing Business Services RNAM/RLAM) and Anisha Jackson (Supplier Diversity Manager) 2

3 On Nov. 5, The Region North America supplier diversity strategic sourcing team held its annual matchmaker event to promote supplier diversity. At the event, women-, minority- and disabled veteran-owned companies were invited to meet with category managers within strategic sourcing and Ericsson stakeholders to showcase their offerings. Most of the companies attending the event were new to Ericsson. At the same time, existing diverse suppliers were invited to talk about expanding their offerings to Ericsson. Rick Ortiz, Greater Dallas Hispanic Chamber of Commerce President, was invited as a keynote speaker to address Ericsson s diverse suppliers about offerings and additional resources. To close the event, five of our star diverse suppliers conducted a roundtable conversation, sharing their stories of perseverance and their path to becoming a diverse supplier. For 2016, our focus will continue to strengthen our program, sustaining our current offerings to achieve Ericsson s vision of the Networked Society, where every person and every industry is empowered to reach their full potential. We will offer a matchmaker event, mentorship program, workshops and seminars, two-tier diversity reporting portal and growth opportunities for diverse suppliers. 3

Bostick, Best Selling Author, Motivational Speaker and Trainer 4 Stefan Hedin conducting a

4 Matchmaking event registration Suppliers getting FIRED UP Rick Ortiz, GDHCC President & CEO Matchmaker event opening session Jurgen Arts, Ericsson CFO, Region North America Aric Bostick, Best Selling Author, Motivational Speaker and Trainer 4 Stefan Hedin conducting a matchmaking session John Simon conducting a matchmaking session Supplier Diversity round table discussion

5 Supplier diversity accomplishments AT&T Supplier Diversity Crystal Award AT&T Supplier Diversity Crystal Award Top Supplier Diversity Program Black EOE Best of the Best by Professional Woman s Magazine & Black EOE Journal WE Texas Top 50 leaders in Corporate Supplier Diversity Ambassador by the MBN USA Magazine AT&T Supplier Diversity Crystal Award Top Supplier Diversity Program Black EOE Best of the Best by Professional Woman s Magazine & Black EOE Journal Ericsson Eagle Award Top 25 Women in Power Impacting Diversity Best Practices Essay in DFW/MSDC (BTTBU) White Paper s MBN USA Magazine Corporate 101 Most Admired Companies in supplier diversity NMSDC Top Corporate of the Year Nominee Above: Angel Ruiz (Chairperson, Region North America), Anisha Jackson (Supplier Diversity Manager) and Jurgen Arts (CFO, Region North America) Left: AT&T Supplier Diversity Crystal Award 5

Equitable opportunity & involvement Calendar of Events Ericsson will continue to take proactive steps to ensure that MBE s, WBE s, DVBE s, small and veteranowned small businesses will have an

Below are Ericsson s memberships for 2016 with various national and regional organizations that we support as part of our diversity efforts, including board member representation.

6 Equitable opportunity & involvement Calendar of Events Ericsson will continue to take proactive steps to ensure that MBE s, WBE s, DVBE s, small and veteranowned small businesses will have an equitable opportunity to compete for contracts with Ericsson. Below are Ericsson s memberships for 2016 with various national and regional organizations that we support as part of our diversity efforts, including board member representation. February 2016 South West Women's Business Council 2016 Parade of Stars Awards Gala March 2016 Women's Business Enterprise National Council (WBENC) Summit & Salute April 2016 South West Women s Business Works Expo DF/W Minority Supplier Diversity Council (MSDC) Buy Those That Buy Us Greater Dallas Hispanic Chamber of Commerce (GDHCC) La Cima Latina Leadership Awards May 2016 DF/W Minority Supplier Diversity Council (MSDC) Business Expo June 2016 Women's Business Enterprise National Council (WBENC) Conference Greater Dallas Hispanic Chamber of Commerce (GDHCC) Stars on the Rise Scholarship Banquet Sprint/Ericsson Juneteenth Celebration October 2016 National Minority Supplier Diversity Council (NMSDC) Conference & Business Opportunity Exchange November 2016 Ericsson Supplier Diversity Matchmaker Event DF/W Minority Supplier Diversity Council (MSDC) E Awards Gala Greater Dallas Hispanic Chamber of Commerce (GDHCC) Quality & Excellence Awards 6

7 Supplier Diversity Statistics Diverse Suppliers Registered with Ericsson 2015 Total Diverse Suppliers Added 2,223 Total Diverse Suppliers with Ericsson contracts 27 Tier ii spend statistics The following represents Ericsson s 2015 Tier II Diversity Spend. We require that all suppliers doing business with Ericsson subcontract 10% to Minority Business Enterprises, 10% to Women Business Enterprises and 2% to Disabled Veteran Business Enterprises Tier II Diversity Spend Dollars Q1 Q2 Q3 Q4 Total Minority Owned Business (MBE) $ 10,306,706 $ 3,276,301 $ 13,839,366 $ 89,513,239 $ 116,935,612 Women Owned Business (WBE) $ 9,345,675 $ 3,295,424 $ 17,818,565 $ 79,208,217 $ 109,667,881 Disabled Veteran Owned Business (DVBE) $ 243,145 $ 487,629 $ 594,160 $ 12,917,177 $ 14,242,110 Totals by quarter $ 19,895,526 $ 7,059,354 $ 32,252,091 $ 181,638,632 $ 240,845,603 7

8 Ericsson is the driving force behind the Networked Society - a world leader in communications technology and services. Our long-term relationships with every major telecom operator in the world allow people, business and society to fulfill their potential and create a more sustainable future. Our services, software and infrastructure - especially in mobility, broadband and the cloud - are enabling the telecom industry and other sectors to do better business, increase efficiency, improve the user experience and capture new opportunities. With approximately 115,000 professionals and customers in 180 countries, we combine global scale with technology and services leadership. We support networks that connect more than 2.5 billion subscribers. Forty percent of the world s mobile traffic is carried over Ericsson networks. And our investments in research and development ensure that our solutions - and our customers - stay in front. Founded in 1876, Ericsson has its headquarters in Stockholm, Sweden. Net sales in 2015 were SEK billion (USD 29.4 billion). Ericsson is listed on NASDAQ OMX stock exchange in Stockholm and the NASDAQ in New York. ericsson.com 2016 Ericsson Inc.

2015 Supplier. Diversity Plan. For calendar year 2015 January 01, 2015 December 31, 2015. Rev PA1 2013-12-17 Ericsson AB 2013 1 Ericsson Internal

2015 Supplier. Diversity Plan. For calendar year 2015 January 01, 2015 December 31, 2015. Rev PA1 2013-12-17 Ericsson AB 2013 1 Ericsson Internal 2015 Supplier Diversity Plan For calendar year 2015 January 01, 2015 December 31, 2015 Rev PA1 2013-12-17 Ericsson AB 2013 1 Table of Contents Commercial Goals... 1 Scope of Supplier Diversity Plan:...