Ericsson Investor Update 2016
(Thomson Reuters ONE) -
* Continued focus on accelerating strategy execution and improved performance
* Ericsson total addressable market expected to grow by 1 to 3 percent in
2016-2018, despite expected decline in mobile infrastructure market by 2 to
6 percent in 2017
* Update on progress of implementation and execution of new company structure,
including high level 2015 financials per new reporting segment
Ericsson (NASDAQ: ERIC) is today holding its annual Investor Update event in New
York. The company is reporting on its strategy implementation for faster
business execution based on its new company structure with three segments:
Networks, IT & Cloud, and Media. The new structure was implemented on July
1, 2016.
Ericsson's strategy builds on efficiency and scale in its core business and
investments in the new revenue base from its targeted growth areas. This will
enable the company to secure leadership in an emerging broader 5G market - from
technology to new business models and services - enabling Ericsson to be a
strong business partner to existing and new customers.
Jan Frykhammar, President and CEO, Ericsson says: "We are forcefully executing
our strategy to drive incremental profit improvements through greater
efficiency, monetizing our installed base in Networks and building new revenue
base in IT & Cloud and Media. Current focus is on speed, efficiency and fine
tuning of strategy execution."
Market size and outlook
Based on the new segment structure with products and services combined, the
company has estimated its addressable market sizes and growth rates as follows:
* Networks: addressable market of USD100 billion in 2016, with -2 to 0% CAGR
growth 2016-2018
* IT & Cloud: addressable market of USD100 billion in 2016, with 5 to 7% CAGR
growth 2016-2018
* Media: addressable market of USD12 billion in 2016, with 9 to 11% CAGR
growth 2016-2018
The company's total addressable market is expected to grow by 1 to 3 percent in
2016-2018.
The negative industry trends from the first half of 2016, due to weaker demand
for mobile broadband, are expected to prevail short-term. Therefore, the company
is adapting operations to lower business volumes to secure resilience and
competitiveness. Ericsson expects that the market for mobile infrastructure will
decline 10 to 15 percent during 2016 and a further decline of 2 to 6 percent in
2017.
New financial reporting structure
As announced earlier, Ericsson will introduce a new financial reporting
structure as of Q1 2017, based on the new company structure. Results will be
reported in three segments: Networks, IT & Cloud, and Media. Each segment
includes the combined sales from products and services.
The restated numbers for 2015 and 2016 will be disclosed ahead of the Q1 2017
report. In the meantime, the company provides the following high level,
unaudited numbers for the new segments based on full year 2015:
* Networks: 75% of total net sales with mid-teens operating margin, excluding
restructuring charges
* IT & Cloud: 20% of total net sales with break-even operating
margin, excluding restructuring charges
* Media: 5% of total net sales with negative low-teens operating margin,
excluding restructuring charges
Details of the event
President and CEO Jan Frykhammar and deputy CFO Carl Mellander will be joined by
members of the company's executive leadership team.
Ericsson's Investor Update event in New York can be accessed via the Ericsson
website. Presentation materials can also be downloaded from the website once the
webcast has started.
NOTES TO EDITORS
New company structure announcement - April 21, 2016
For media kits, backgrounders and high-resolution photos, please visit
www.ericsson.com/press
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 246.9 billion (USD 29.4 billion). Ericsson is listed on NASDAQ
OMX stock exchange in Stockholm and the NASDAQ in New York.
www.ericsson.com
www.ericsson.com/news
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www.youtube.com/ericsson
FOR FURTHER INFORMATION, PLEASE CONTACT
Peter Nyquist, Head of Investor Relations
Phone: +46 10 714 64 49
E-mail: peter.nyquist(at)ericsson.com
Ericsson Corporate Communications
Phone: +46 10 719 69 92
E-mail: media.relations(at)ericsson.com
Ericsson Investor Relations
Phone: +46 10 719 00 00
E-mail: investor.relations(at)ericsson.com
Ericsson Forward-Looking Statement
All statements made or incorporated by reference in this release, other than
statements or characterizations of historical facts, are forward-looking
statements. These forward-looking statements are based on our current
expectations, estimates and projections about our industry, management's beliefs
and certain assumptions made by us. Forward-looking statements can often be
identified by words such as "anticipates", "expects", "intends", "plans",
"predicts", "believes", "seeks", "estimates", "may", "will", "should", "would",
"potential", "continue", and variations or negatives of these words, and
include, among others, statements regarding: (i) strategies, outlook and growth
prospects; (ii) positioning to deliver future plans and to realize potential for
future growth; (iii) liquidity and capital resources and expenditure, and our
credit ratings; (iv) growth in demand for our products and services; (v) our
joint venture activities; (vi) economic outlook and industry trends; (vii)
developments of our markets; (viii) the impact of regulatory initiatives; (ix)
research and development expenditures; (x) the strength of our competitors; (xi)
future cost savings; (xii) plans to launch new products and services; (xiii)
assessments of risks; (xiv) integration of acquired businesses; (xv) compliance
with rules and regulations and (xvi) infringements of intellectual property
rights of others. In addition, any statements that refer to expectations,
projections or other characterizations of future events or circumstances,
including any underlying assumptions, are forward looking statements. These
forward-looking statements speak only as of the date hereof and are based upon
the information available to us at this time. Such information is subject to
change, and we will not necessarily inform you of such changes. These statements
are not guarantees of future performance and are subject to risks, uncertainties
and assumptions that are difficult to predict. Therefore, our actual results
could differ materially and adversely from those expressed in any forward-
looking statements as a result of various factors. Important factors that may
cause such a difference for Ericsson include, but are not limited to: (i)
material adverse changes in the markets in which we operate or in global
economic conditions; (ii) increased product and price competition; (iii)
reductions in capital expenditure by network operators; (iv) the cost of
technological innovation and increased expenditure to improve quality of
service; (v) significant changes in market share for our principal products and
services; (vi) foreign exchange rate or interest rate fluctuations; and (vii)
the successful implementation of our business and operational initiatives.
Ericsson Investor Update Nov 10 2016:
http://hugin.info/1061/R/2055908/770084.docx
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Ericsson via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 10.11.2016 - 14:00 Uhr
Sprache: Deutsch
News-ID 506253
Anzahl Zeichen: 9668
contact information:
Town:
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Kategorie:
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"Ericsson Investor Update 2016"
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