Ericsson s briefing at CTIA CTIA Wireless, Orlando, FLA March 27, 2007 Pia Gideon Head of Marketing and Communications North America
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Ericsson s briefing at CTIA CTIA Wireless, Orlando, FLA March 27, 2007 Carl-Henric Svanberg President and CEO
North America leadership The number one telecommunications market World s highest revenues Broadband everywhere! Voice, video & data CTIA Wireless 2007
Steady sales growth 2003-2006 Sales CAGR 15% since 2003 Sales CAGR 18% since 2003 incl. 50% of Sony Ericsson SEK m. 250,000 200,000 150,000 100,000 50,000 0 2003 2004 2005 2006
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% Q103Q203Q303Q403Q104Q204Q304Q404Q105Q205Q305Q405Q106Q206Q306Q406-10.00% -20.00% -30.00% *Excluding restructuring charges and capital gains in third quarter 2006
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
Strengthening position in IP Expanding our offering Redback Entrisphere Marconi
Sony Ericsson
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. 30000 4000 25000 3500 20000 CAGR 37% 3000 CAGR 30% 2500 15000 2000 10000 1500 1000 5000 500 0 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
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!
Breakthrough year for HSPA Footprint by end of 2006 160 HSPA devices 108 HSPA networks launched 54 countries
Successful in telecom services Technology AND Services leadership
A networked multimedia market is evolving Telecoms Media Internet
Exciting opportunities Communication for all Broadband everywhere Internet goes mobile
Ericsson s briefing at CTIA CTIA Wireless, Orlando, FLA March 27, 2007 Mikael Bäck VP Product and Portfolio Mangement Business Unit Networks
Any service, any device, anywhere The Full Service Broadband vision Broadband services to a screen of your choice
Full Service Broadband Architecture Service network IMS and communication enablers Multi Access Edge Fixed access Mobile access Transport network
Full Service Broadband Architecture Service network IMS and communication enablers Multi Access Edge Fixed access Mobile access Transport network
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
Full Service Broadband Architecture Service network IMS and communication enablers Multi Access Edge Fixed access Mobile access Transport network
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
Full Service Broadband Architecture Service network Multi Access Edge Fixed access Mobile access Transport network
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
Any service, any device, anywhere The Full Service Broadband vision Broadband services to a screen of your choice
Ericsson s briefing at CTIA CTIA Wireless, Orlando, FLA March 27, 2007 Hans Vestberg Executive Vice President Head of Global Services
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
The leader in telecom services 1 10 100 1,000 1,000,000 100,000,000 1,000,000,000 Well positioned for growth
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
Ericsson - the business partner Operator Consulting Prime Integrator Managed Services 24,000 + 16,000 = 40,000 people Access products Core products Service layer platforms Mobile platforms Global best practices - tools, methods and processes
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
Mission impossible Not
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
Successful in telecom services Technology AND Services leadership It takes time to get it right!
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
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
Ericsson s briefing at CTIA CTIA Wireless, Orlando, FLA March 27, 2007 Jan Wäreby Senior Vice President Head of Multimedia
What Multimedia is all about... My Services & Brand My Communities My Devices
A networked multimedia market is evolving Telecoms Media Internet
Ericsson Multimedia Networked media and messaging
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
Strengthened IPTV position End-to-end IPTV business solution Over 90% shares of Tandberg Television Open IPTV Forum
Mobile TV is happening worldwide >120 launches of mobile TV >100 of these over cellular networks >50 of these supplied by Ericsson Source: Ericsson
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
Ericsson Multimedia Networked media and messaging Enterprise Applications Service Delivery Platforms Revenue Management Mobile Platforms
Sony Ericsson
Partnerships are essential
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 100.000 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)
A networked multimedia market is evolving Telecoms Media Internet Ready to capture the growth!