Ericsson s briefing at CTIA
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1 Ericsson s briefing at CTIA CTIA Wireless, Orlando, FLA March 27, 2007 Pia Gideon Head of Marketing and Communications North America
2 Safe Harbor Statement This presentation contains forward looking statements. Such statements are based on our current expectations and are subject to certain risks and uncertainties that could negatively affect our business. Please read our earnings reports and our most recent annual report for a better understanding of these risks and uncertainties.
3 Ericsson s briefing at CTIA CTIA Wireless, Orlando, FLA March 27, 2007 Carl-Henric Svanberg President and CEO
4 North America leadership The number one telecommunications market World s highest revenues Broadband everywhere! Voice, video & data CTIA Wireless 2007
5 Steady sales growth Sales CAGR 15% since 2003 Sales CAGR 18% since 2003 incl. 50% of Sony Ericsson SEK m. 250, , , ,000 50,
6 Financial highlights Margins Full year gross margin 42.2%* Full year operating margin 20.1% (21.8%) 30.00% Operating margin % 20.00% 10.00% 0.00% Q103Q203Q303Q403Q104Q204Q304Q404Q105Q205Q305Q405Q106Q206Q306Q % % % *Excluding restructuring charges and capital gains in third quarter 2006
7 Organizing for growth Business Unit Networks Business Unit Global Services Business Unit Multimedia Create the right environment for our businesses to prosper Focused, simple and clear organization Our strategy remains Organic growth with bolt-on acquisitions
8 Strengthening position in IP Expanding our offering Redback Entrisphere Marconi
9 Sony Ericsson
10 Sony Ericsson highlights 2006 Sales up 51% to EUR 11 b. Pre tax profit up 153% to EUR 1.3 b. Sony Ericsson Units Sony Ericsson sales Thousand EUR m CAGR 37% 3000 CAGR 30% Q103 Q203 Q303 Q403 Q104 Q204 Q304 Q404 Q105 Q205 Q305 Q405 Q106 Q206 Q306 Q406 0 Q103 Q203 Q303 Q403 Q104 Q204 Q304 Q404 Q105 Q205 Q305 Q405 Q106 Q206 Q306 Q406
11 An all-communicating world Mobile communications today 2.6 bn subscriptions worldwide 4 bn before 2010 Close to 1 bn handsets sold per year A remarkable development that is changing the world!
12 Breakthrough year for HSPA Footprint by end of HSPA devices 108 HSPA networks launched 54 countries
13 Successful in telecom services Technology AND Services leadership
14 A networked multimedia market is evolving Telecoms Media Internet
15 Exciting opportunities Communication for all Broadband everywhere Internet goes mobile
16 Ericsson s briefing at CTIA CTIA Wireless, Orlando, FLA March 27, 2007 Mikael Bäck VP Product and Portfolio Mangement Business Unit Networks
17 Any service, any device, anywhere The Full Service Broadband vision Broadband services to a screen of your choice
18 Full Service Broadband Architecture Service network IMS and communication enablers Multi Access Edge Fixed access Mobile access Transport network
19 Full Service Broadband Architecture Service network IMS and communication enablers Multi Access Edge Fixed access Mobile access Transport network
20 Number one position in mobile access The US drives mobile broadband Ericsson powers half of the world s HSPA networks Ericsson HSPA built into the notebook Ericsson drives HSPA evolution toward LTE
21 Full Service Broadband Architecture Service network IMS and communication enablers Multi Access Edge Fixed access Mobile access Transport network
22 Leader in IMS and communication enablers First IMS based IP Centrex and VoIP Mobile IMS based community services IMS embraced by Cable Labs Expanded role for IMS - Open IPTV Forum
23 Full Service Broadband Architecture Service network Multi Access Edge Fixed access Mobile access Transport network
24 Expanding from strong US mobile position into new customers and portfolio areas Redback technology leader in IP edge routing Entrisphere leading GPON fiber access solution Marconi reinforce packet transport offering Solid broadband R&D base in the US
25 Any service, any device, anywhere The Full Service Broadband vision Broadband services to a screen of your choice
26 Ericsson s briefing at CTIA CTIA Wireless, Orlando, FLA March 27, 2007 Hans Vestberg Executive Vice President Head of Global Services
27 Ericsson Global Services two roles Global Services Expand in services Managed Services Consulting Integration Networks Services in Ericsson solutions Multimedia Network Design Network Rollout Education Customer Support
28 The leader in telecom services ,000 1,000, ,000,000 1,000,000,000 Well positioned for growth
29 Ericsson - the business partner Operator Consulting Prime Integrator Managed Services Network rollout Network design Education Customer support Managed operation and hosting Systems integration Business and technology consulting Access products Core products Service layer platforms Mobile platforms Global best practices - tools, methods and processes
30 Ericsson - the business partner Operator Consulting Prime Integrator Managed Services 24, ,000 = 40,000 people Access products Core products Service layer platforms Mobile platforms Global best practices - tools, methods and processes
31 Ericsson - the business partner Operator Consulting Prime Integrator Managed Services Access products Core products Service layer platforms Mobile platforms Global best practices - tools, methods and processes
32 Mission impossible Not
33 103 days to go live 2,300 base stations deployed and integrated (153 per week) 1,495 tons of Ericsson equipment 161,000 project tracking activities
34 Successful in telecom services Technology AND Services leadership It takes time to get it right!
35 Our competitive advantage Scale leverage Maximize use of assets Skill leverage Maximize use of knowledge Standardized processes Standardized tools Streamlined operations Best practices Best knowledge sharing Business process expertise Technology
36 North American market North America - Ericsson s largest Services market 1,500 Services employees 500 in Global Delivery Centers Additionally 5,000 sourced employees Strongest hosting market and pioneering for hosting + 50 hosted contracts New announcements Suncom Prepaid and Ringback tones Dobson Prepaid and Napster.Mobile
37 Ericsson s briefing at CTIA CTIA Wireless, Orlando, FLA March 27, 2007 Jan Wäreby Senior Vice President Head of Multimedia
38 What Multimedia is all about... My Services & Brand My Communities My Devices
39 A networked multimedia market is evolving Telecoms Media Internet
40 Ericsson Multimedia Networked media and messaging
41 TV as we know it is changing Passive Personalization Active Chatting Mobility Voting Traditional scheduled TV Podcast TV On Demand Advertising Sharing Personalization and interactivity demand two-way communication
42 Strengthened IPTV position End-to-end IPTV business solution Over 90% shares of Tandberg Television Open IPTV Forum
43 Mobile TV is happening worldwide >120 launches of mobile TV >100 of these over cellular networks >50 of these supplied by Ericsson Source: Ericsson
44 Turner Broadcasting and Ericsson Enabled, operated and delivered by Ericsson Mobilization of Turner assets globally CNN, Cartoon Network, Adult Swim and more! Focus on TV and Video content Delivery of content through Operator channels to maximize service quality and exploit 3G network capabilities
45 Ericsson Multimedia Networked media and messaging Enterprise Applications Service Delivery Platforms Revenue Management Mobile Platforms
46 Sony Ericsson
47 Partnerships are essential
48 Ericsson Multimedia Networked media and messaging 19 officially launched music contracts More that 40% of Mobile TV & Video launches supplied by Ericsson Enterprise Applications More than enterprise customers worldwide Service Delivery Platforms Leading supplier of Service Delivery Platforms Revenue Management No 1 in Charging and Mediation with more than 20% market share Mobile Platforms Over 30 million WCDMA handsets based on EMP platform Global WCDMA market share of 25% (Q4 06)
49 A networked multimedia market is evolving Telecoms Media Internet Ready to capture the growth!
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