SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN ISSUER
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
April 21, 2021
Commission File Number 000-12033
LM ERICSSON TELEPHONE COMPANY
(Translation of registrants name into English)
Torshamnsgatan 21, Kista
SE-164 83, Stockholm, Sweden
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐
Announcement of LM Ericsson Telephone Company, April 21, 2021 regarding First quarter report 2021.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
TELEFONAKTIEBOLAGET LM ERICSSON (publ) | ||
By: | /s/ XAVIER DEDULLEN | |
Xavier Dedullen | ||
Senior Vice President, Chief Legal Officer | ||
By: | /s/ CARL MELLANDER | |
Carl Mellander | ||
Senior Vice President, Chief Financial Officer |
Date: April 21, 2021
First quarter report 2021
Stockholm, April 21, 2021
First quarter highlights
| Sales adjusted for comparable units and currency grew by 10% YoY despite SEK -1.6 b. lower IPR licensing revenues YoY and four of the five market areas showed double-digit growth. Reported sales were SEK 49.8 (49.8) b. |
| Gross margin excluding restructuring charges improved to 42.9% (40.4%) with margin improvements in all segments despite lower IPR licensing revenues. Reported gross margin improved to 42.8% (39.8%). |
| EBIT excluding restructuring charges improved to SEK 5.3 b. (10.7%) from SEK 4.6 b. (9.3%) YoY driven by Networks, more than offsetting the negative impact from lower IPR licensing revenues. Reported EBIT was SEK 5.3 (4.3) b. |
| Networks sales increased by 15% YoY, adjusted for comparable units and currency, driven by market share gains. Networks EBIT margin excluding restructuring charges was 19.9% (16.8%). |
| Reported net income was SEK 3.2 (2.3) b. |
| Free cash flow before M&A was SEK 1.6 (2.3) b. mainly impacted by lower incoming IPR payments. Net cash per March 31, 2021 was SEK 43.0 (38.4) b. |
SEK b. |
Q1 2021 |
Q1 2020 |
YoY change |
Q4 2020 |
QoQ change |
|||||||||||||||
Net sales |
49.8 | 49.8 | 0 | % | 69.6 | -28 | % | |||||||||||||
Sales growth adj. for comparable units and currency ¹ |
| | 10 | % | | | ||||||||||||||
Gross margin ¹ |
42.8 | % | 39.8 | % | | 40.6 | % | | ||||||||||||
EBIT |
5.3 | 4.3 | 22 | % | 11.0 | -52 | % | |||||||||||||
EBIT margin ¹ |
10.6 | % | 8.7 | % | | 15.8 | % | | ||||||||||||
Net income |
3.2 | 2.3 | 39 | % | 7.2 | -56 | % | |||||||||||||
EPS diluted, SEK |
0.96 | 0.65 | 48 | % | 2.26 | -58 | % | |||||||||||||
Measures excluding restructuring charges and other items affecting comparability¹ |
||||||||||||||||||||
Gross margin excluding restructuring charges |
42.9 | % | 40.4 | % | | 40.6 | % | | ||||||||||||
EBIT excluding restructuring charges |
5.3 | 4.6 | 16 | % | 11.0 | -51 | % | |||||||||||||
EBIT margin excluding restructuring charges |
10.7 | % | 9.3 | % | | 15.8 | % | | ||||||||||||
Free cash flow before M & A |
1.6 | 2.3 | -33 | % | 12.8 | -88 | % | |||||||||||||
Net cash, end of period |
43.0 | 38.4 | 12 | % | 41.9 | 3 | % |
1 | Non-IFRS financial measures are reconciled at the end of this report to the most directly reconcilable line items in the financial statements. |
1 Ericsson | First Quarter Report 2021 |
CEO comments
2 Ericsson | First Quarter Report 2021 | CEO Comments |
Financial highlights
Net sales development
SEK b. |
Q1 2021 |
Q1 2020 |
YoY change |
YoY adj.¹ |
Q4 2020 |
QoQ change |
||||||||||||||||||
Networks |
36.3 | 35.1 | 3 | % | 15 | % | 49.4 | -27 | % | |||||||||||||||
Digital Services |
6.9 | 7.3 | -6 | % | 3 | % | 12.7 | -46 | % | |||||||||||||||
Managed Services |
4.9 | 5.7 | -15 | % | -8 | % | 5.8 | -16 | % | |||||||||||||||
Emerging Business and Other |
1.7 | 1.6 | 11 | % | 9 | % | 1.7 | 0 | % | |||||||||||||||
Total |
49.8 | 49.8 | 0 | % | 10 | % | 69.6 | -28 | % |
1 | Sales growth adjusted for comparable units and currency. Non-IFRS financial measures are reconciled at the end of this report to the most directly reconcilable line items in the financial statements. |
Income and margin development
SEK b. |
Q1 2021 |
Q1 2020 |
YoY change |
Q4 2020 |
QoQ change |
|||||||||||||||
Net sales |
49.8 | 49.8 | 0 | % | 69.6 | -28 | % | |||||||||||||
Gross income |
21.3 | 19.8 | 8 | % | 28.3 | -25 | % | |||||||||||||
Gross margin |
42.8 | % | 39.8 | % | | 40.6 | % | | ||||||||||||
Research and development (R&D) expenses |
-9.6 | -9.1 | | -10.4 | | |||||||||||||||
Selling and administrative expenses |
-6.2 | -6.2 | | -7.4 | | |||||||||||||||
Impairment losses on trade receivables |
-0.2 | -0.2 | | 0.3 | | |||||||||||||||
Other operating income and expenses |
0.0 | 0.1 | -85 | % | 0.4 | -97 | % | |||||||||||||
EBIT |
5.3 | 4.3 | 22 | % | 11.0 | -52 | % | |||||||||||||
of which Networks |
7.2 | 5.8 | 24 | % | 10.6 | -32 | % | |||||||||||||
of which Digital Services |
-1.5 | -1.4 | | 0.5 | | |||||||||||||||
of which Managed Services |
0.3 | 0.4 | -23 | % | 0.4 | -22 | % | |||||||||||||
of which Emerging Business & Other |
-0.8 | -0.5 | - | -0.5 | - | |||||||||||||||
EBIT margin |
10.6 | % | 8.7 | % | | 15.8 | % | | ||||||||||||
Financial income and expenses, net |
-0.5 | -0.9 | | -0.1 | | |||||||||||||||
Income tax |
-1.6 | -1.1 | | -3.7 | | |||||||||||||||
Net income |
3.2 | 2.3 | 39 | % | 7.2 | -56 | % | |||||||||||||
Restructuring charges |
-0.1 | -0.3 | | 0.0 | | |||||||||||||||
Measures excl. restructuring charges and other items affecting comparability¹ |
||||||||||||||||||||
Gross margin excluding restructuring charges |
42.9 | % | 40.4 | % | | 40.6 | % | | ||||||||||||
EBIT margin excluding restructuring charges |
10.7 | % | 9.3 | % | | 15.8 | % | | ||||||||||||
EBITA excluding restructuring charges |
5.6 | 4.9 | 14 | % | 11.3 | -50 | % | |||||||||||||
EBITA margin excluding restructuring charges |
11.3 | % | 9.9 | % | | 16.2 | % | |
1 | Non-IFRS financial measures are reconciled at the end of this report to the most directly reconcilable line items in the financial statements. |
3 Ericsson | First Quarter Report 2021 | Financial highlights |
4 Ericsson | First Quarter Report 2021 | Financial highlights |
5 Ericsson | First Quarter Report 2021 | Planning assumptions |
Market area sales
SEK b. |
Q1 2021 |
Q1 2020 |
YoY change |
YoY adj.¹ |
Q4 2020 |
QoQ change |
||||||||||||||||||
South EastAsia, Oceania and India |
6.7 | 5.9 | 13 | % | 21 | % | 9.7 | -32 | % | |||||||||||||||
North EastAsia |
6.5 | 3.9 | 66 | % | 78 | % | 12.8 | -49 | % | |||||||||||||||
North America |
17.1 | 17.9 | -5 | % | 10 | % | 19.1 | -11 | % | |||||||||||||||
Europe and Latin America |
12.6 | 12.2 | 3 | % | 12 | % | 17.1 | -26 | % | |||||||||||||||
Middle East and Africa |
4.4 | 5.8 | -25 | % | -16 | % | 6.5 | -33 | % | |||||||||||||||
Other² |
2.5 | 3.9 | -37 | % | - | 4.3 | -42 | % | ||||||||||||||||
Total |
49.8 | 49.8 | 0 | % | 10 | % | 69.6 | -28 | % |
1 | Sales growth adjusted for currency. |
2 | Market area Other includes primarily IPR licensing revenues and the major part of segment Emerging Business and Other. |
Sales | breakdown by market area by segment is available at the end of this report. |
6 Ericsson | First Quarter Report 2021 | Market area sales |
Segment results
7 Ericsson | First Quarter Report 2021 | Segment results |
8 Ericsson | First Quarter Report 2021 | Segment results |
Cash flow and financial position
Free cash flow bridge, SEK b. |
Q 1 2021 |
Q 1 2020 |
Q 4 2020 |
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EBIT excl. restructuring charges |
5.3 | 4.6 | 11.0 | |||||||||
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Depreciation, amortization and impairment losses |
1.9 | 2.1 | 2.3 | |||||||||
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Restructuring charges |
-0.1 | -0.3 | 0.0 | |||||||||
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Changes in working capital1) |
-3.9 | -0.2 | 1.3 | |||||||||
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Interest paid/received, taxes paid, and other |
-0.1 | -1.9 | -0.7 | |||||||||
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Cash flow from operating activities |
3.2 | 4.3 | 13.9 | |||||||||
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Capex net and other investing activities |
-1.1 | -1.4 | -0.5 | |||||||||
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Repayment of lease liabilities |
-0.5 | -0.6 | -0.6 | |||||||||
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Free cash flow before M&A |
1.6 | 2.3 | 12.8 | |||||||||
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M&A |
0.0 | -0.2 | -9.3 | |||||||||
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Free cash flow after M&A |
1.6 | 2.1 | 3.5 | |||||||||
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Cash flow from operating activities |
3.2 | 4.3 | 13.9 | |||||||||
Cash flow from investing activities |
-0.9 | -5.0 | -8.6 | |||||||||
Cash flow from financing activities |
-6.2 | 1.4 | -8.5 |
SEK b. |
Mar 31 2021 |
Mar 31 2020 |
Dec 31 2020 |
|||||||||
Gross cash |
68.6 | 79.5 | 72.0 | |||||||||
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Borrowings, current |
2.4 | 17.8 | 7.9 | |||||||||
Borrowings, non-current |
23.3 | 23.4 | 22.2 | |||||||||
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Net cash |
43.0 | 38.4 | 41.9 | |||||||||
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Equity |
88.1 | 79.1 | 85.2 | |||||||||
Total assets |
270.3 | 292.3 | 271.5 | |||||||||
Capital turnover (times) |
1.3 | 1.2 | 1.4 | |||||||||
Return on capital employed (%) |
13.3 | % | 10.2 | % | 17.0 | % |
Non-IFRS financial measures are reconciled at the end of this report to the most directly reconcilable line items in the financial statements.
1 | Defined as Changes in operating net assets |
9 Ericsson | First Quarter Report 2021 | Cash flow and financial position |
10 Ericsson | First Quarter Report 2021 | Parent Company |
Other information
11 Ericsson | First Quarter Report 2021 | Other information |
12 Ericsson | First Quarter Report 2021 | Other information |
13 Ericsson | First Quarter Report 2021 | Risk factors |
Editors note
14 Ericsson | First Quarter Report 2021 | Editors note |
Forward-looking statements
15 Ericsson | First Quarter Report 2021 | Forward-looking statements |
Financial statements and other information
Financial statements (unaudited) |
17 | |||
17 | ||||
17 | ||||
18 | ||||
19 | ||||
20 | ||||
20 | ||||
Condensed consolidated statement of cash flows isolated quarters |
21 | |||
22 | ||||
Condensed Parent Company statement of comprehensive income (loss) |
22 | |||
23 | ||||
Accounting policies and Explanatory notes (unaudited) |
24 | |||
24 | ||||
24 | ||||
25 | ||||
29 | ||||
30 | ||||
31 | ||||
Note 7 Contingent liabilities and Assets pledged as collateral |
31 | |||
32 | ||||
32 | ||||
Alternative performance measures (unaudited) |
33 | |||
33 | ||||
34 | ||||
EBITA and EBITA margin / EBITA and EBITA margin excluding restructuring |
34 | |||
Rolling four quarters of net sales and operating margin excluding restructuring charges (%) |
35 | |||
36 | ||||
36 | ||||
36 | ||||
37 | ||||
37 | ||||
37 | ||||
38 | ||||
38 | ||||
Sales growth by segment adjusted for comparable units and currency |
39 | |||
Sales growth by market area adjusted for comparable units and currency |
39 | |||
40 | ||||
40 | ||||
41 | ||||
41 | ||||
Gross income and gross margin excluding restructuring charges by segment |
42 | |||
EBIT and EBIT margin excluding restructuring charges by segment |
43 | |||
43 | ||||
Rolling four quarters of EBIT margin excluding restructuring charges by segment (%) |
43 | |||
44 | ||||
44 |
16 Ericsson | First Quarter Report 2021 | Financial statements and other Information |
Financial statements (unaudited)
Condensed consolidated income statement
Q1 | Jan-M ar | Jan-Dec | ||||||||||||||||||
SEK m illion |
Note | 2021 | 2020 | Change | 2020 | |||||||||||||||
Net sales |
3 | 49,778 | 49,750 | 0 | % | 232,390 | ||||||||||||||
Cost of sales |
-28,483 | -29,962 | -5 | % | -138,666 | |||||||||||||||
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Gross income |
3 | 21,295 | 19,788 | 8 | % | 93,724 | ||||||||||||||
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Research and development expenses |
-9,576 | -9,145 | 5 | % | -39,714 | |||||||||||||||
Selling and administrative expenses |
-6,188 | -6,238 | -1 | % | -26,684 | |||||||||||||||
Impairment losses on trade receivables |
-212 | -160 | 33 | % | 118 | |||||||||||||||
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Operating expenses |
-15,976 | -15,543 | 3 | % | -66,280 | |||||||||||||||
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Other operating income and expenses |
13 | 89 | -85 | % | 662 | |||||||||||||||
Share in earnings of JV and associated companies |
-71 | -28 | 154 | % | -298 | |||||||||||||||
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Earnings before financial items and income tax (EBIT) |
3 | 5,261 | 4,306 | 22 | % | 27,808 | ||||||||||||||
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Financial income and expenses, net |
-533 | -902 | -41 | % | -596 | |||||||||||||||
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Income after financial items |
4,728 | 3,404 | 39 | % | 27,212 | |||||||||||||||
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Income tax |
-1,560 | -1,124 | 39 | % | -9,589 | |||||||||||||||
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Net incom e |
3,168 | 2,280 | 39 | % | 17,623 | |||||||||||||||
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Net income (loss) attributable to: |
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Owners of the Parent Company |
3,187 | 2,156 | 17,483 | |||||||||||||||||
Non-controlling interests |
-19 | 124 | 140 | |||||||||||||||||
Other information |
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Average number of shares, basic (million) |
8 | 3,328 | 3,317 | 3,323 | ||||||||||||||||
Earnings per share, basic (SEK) ¹â¾ |
0.96 | 0.65 | 5.26 | |||||||||||||||||
Earnings per share, diluted (SEK) ²â¾ |
0.96 | 0.65 | 5.26 |
1) | Based on net income attributable to owners of the Parent Company. |
2) | Potential ordinary shares are not considered when their conversion to ordinary shares would increase earnings per share. |
Condensed statement of comprehensive income (loss)
Q1 | Jan-Dec | |||||||||||
SEK m illion |
2021 | 2020 | 2020 | |||||||||
Net income |
3,168 | 2,280 | 17,623 | |||||||||
Other comprehensive income (loss) |
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Items that will not be reclassified to profit or loss |
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Remeasurements of defined benefits pension plans incl.asset ceiling |
6,046 | -4,683 | -4,618 | |||||||||
Revaluation of borrowings due to change in creditrisk |
-55 | 1,725 | 99 | |||||||||
Tax on items that will not be reclassified to profit or loss |
-1,233 | 705 | 880 | |||||||||
Items that have been or may be reclassified to profit or loss |
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Cash flow hedge reserve |
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Gains/ losses arising during the period |
-31 | -241 | 136 | |||||||||
Reclassification adjustments on gains/ losses included in profit or loss |
-24 | 70 | 281 | |||||||||
Translation reserves |
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Changes in translation reserves |
1,721 | 2,211 | -5,376 | |||||||||
Reclassification to profit and loss |
| | 124 | |||||||||
Share of other comprehensive income (loss) of JV and associated companies |
35 | 88 | -81 | |||||||||
Tax on items that have been or may be reclassified to profit or loss |
11 | 35 | -86 | |||||||||
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Total other comprehensive income, net of tax |
6,470 | -90 | -8,641 | |||||||||
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Total comprehensive incom e |
9,638 | 2,190 | 8,982 | |||||||||
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Total comprehensive income attributable to: |
||||||||||||
Owners of the Parent Company |
9,755 | 2,162 | 8,787 | |||||||||
Non-controlling interests |
-117 | 28 | 195 |
17 Ericsson | First Quarter Report 2021 | Financial statements |
Condensed consolidated balance sheet
Mar31 | Dec31 | |||||||||||
SEK m illion |
Note | 2021 | 2020 | |||||||||
Assets |
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Non-current assets |
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Intangible assets |
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Capitalized development expenses |
3,875 | 3,857 | ||||||||||
Goodwill |
36,659 | 34,945 | ||||||||||
Intellectual property rights, brands and other intangible assets |
4,623 | 4,805 | ||||||||||
Property, plantand equipment |
13,735 | 13,383 | ||||||||||
Right-of-use assets |
8,137 | 7,980 | ||||||||||
Financial assets |
||||||||||||
Equity in JV and associated companies |
1,232 | 1,274 | ||||||||||
Other investments in shares and participations |
51,541 | 1,519 | ||||||||||
Customer finance, non-current |
5 | 840 | 1,221 | |||||||||
Interest-bearing securities, non-current |
5 | 23,477 | 21,613 | |||||||||
Other financial assets, non-current |
54,816 | 4,842 | ||||||||||
Deferred tax assets |
25,079 | 26,296 | ||||||||||
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124,014 | 121,735 | |||||||||||
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Current assets |
||||||||||||
Inventories |
30,250 | 28,097 | ||||||||||
Contract assets |
11,853 | 11,273 | ||||||||||
Trade receivables |
5 | 42,068 | 42,063 | |||||||||
Customer finance, current |
5 | 2,183 | 1,916 | |||||||||
Other current receivables |
14,809 | 16,014 | ||||||||||
Interest-bearing securities, current |
5 | 4,599 | 6,820 | |||||||||
Cash and cash equivalents |
5 | 40,543 | 43,612 | |||||||||
146,305 | 149,795 | |||||||||||
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Total assets |
270,319 | 271,530 | ||||||||||
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Equity and liabilities |
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Equity |
||||||||||||
Stockholders equity |
89,782 | 86,674 | ||||||||||
Non-controlling interestin equity of subsidiaries |
-1,658 | -1,497 | ||||||||||
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88,124 | 85,177 | |||||||||||
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Non-current liabilities |
||||||||||||
Post-employment benefits |
31,876 | 37,353 | ||||||||||
Provisions,non-current |
4 | 2,337 | 2,886 | |||||||||
Deferred tax liabilities |
1,049 | 1,089 | ||||||||||
Borrowings, non-current |
5 | 23,299 | 22,218 | |||||||||
Lease liabilities,non-current |
7,313 | 7,104 | ||||||||||
Other non-current liabilities |
1,326 | 1,383 | ||||||||||
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67,200 | 72,033 | |||||||||||
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Current liabilities |
||||||||||||
Provisions, current |
4 | 8,708 | 7,580 | |||||||||
Borrowings, current |
5 | 2,353 | 7,942 | |||||||||
Lease liabilities, current |
2,223 | 2,196 | ||||||||||
Contract liabilities |
32,054 | 26,440 | ||||||||||
Trade payables |
5 | 29,135 | 31,988 | |||||||||
Other current liabilities |
40,522 | 38,174 | ||||||||||
114,995 | 114,320 | |||||||||||
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Total equity and liabilities |
270,319 | 271,530 | ||||||||||
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|
18 Ericsson | First Quarter Report 2021 | Financial statements |
Condensed consolidated statement of cash flows
Q1 | Jan-Dec | |||||||||||||||
SEK m illion |
Note | 2021 | 2020 | 2020 | ||||||||||||
Operating activities |
||||||||||||||||
Net income |
3,168 | 2,280 | 17,623 | |||||||||||||
Adjustments for |
||||||||||||||||
Taxes |
1,584 | 1,237 | 10,436 | |||||||||||||
Earnings/ dividends in JV and associated companies |
76 | 30 | 374 | |||||||||||||
Depreciation, amortization and impairment losses |
61,935 | 2,120 | 8,674 | |||||||||||||
Other |
143 | 792 | 447 | |||||||||||||
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6,906 | 6,459 | 37,554 | ||||||||||||||
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Changesin operating netassets |
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Inventories |
-1,235 | -538 | 384 | |||||||||||||
Custom erfinance, currentand non-current |
219 | 817 | 370 | |||||||||||||
Trade receivables and contract assets |
1,979 | 5,559 | -3,185 | |||||||||||||
Trade payables |
-4,112 | -2,176 | 4,303 | |||||||||||||
Provisions and post-employment benefits |
523 | 218 | -2,669 | |||||||||||||
Contract liabilities |
4,454 | 3,987 | -560 | |||||||||||||
Other operating assets and liabilities,net |
-5,681 | -8,109 | -2,280 | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||
-3,853 | -242 | -3,637 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Interest received |
242 | 132 | 763 | |||||||||||||
Interest paid |
-292 | -390 | -1,434 | |||||||||||||
Taxes paid/received |
202 | -1,657 | -4,313 | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Cash flow from operating activities |
3,205 | 4,302 | 28,933 | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Investing activities |
||||||||||||||||
Investm entsin property,plantand equipm ent |
6 | -915 | -1,113 | -4,493 | ||||||||||||
Sales of property, plantand equipm ent |
24 | 26 | 254 | |||||||||||||
Acquisitions/divestments of subsidiaries and other operations, net¹¾ |
5 | -208 | -9,598 | |||||||||||||
Product developm ent |
6 | -204 | -262 | -817 | ||||||||||||
Other investing activities |
-5 | -42 | 801 | |||||||||||||
Interest-bearing securities |
161 | -3,432 | -1,348 | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Cash flow from investing activities |
-934 | -5,031 | -15,201 | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Financing activities |
||||||||||||||||
Proceeds from issuance of long-term debt |
77 | 344 | 3,219 | |||||||||||||
Repayment of long-term debt |
-5,242 | -291 | -9,031 | |||||||||||||
Dividends paid |
-5 | -9 | -5,996 | |||||||||||||
Repayment of lease liabilities |
-548 | -596 | -2,417 | |||||||||||||
Other financing activities |
-449 | 1,983 | 1,733 | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Cash flow from financing activities |
-6,167 | 1,431 | -12,492 | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Effect of exchange rate changes on cash |
827 | 2,566 | -2,707 | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net change in cash and cash equivalents |
-3,069 | 3,268 | -1,467 | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Cash and cash equivalents, beginning of period |
43,612 | 45,079 | 45,079 | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Cash and cash equivalents, end of period |
40,543 | 48,347 | 43,612 |
1) | Includes acquisition of Cradlepoint of SEK -9.5 b. in 2020. |
19 Ericsson | First Quarter Report 2021 | Condensed consolidated statement of cash flows |
Condensed consolidated statement of changes in equity
Jan-M ar | Jan-Dec | |||||||||||
SEK million |
2021 | 2020 | 2020 | |||||||||
Opening balance |
85,177 | 81,878 | 81,878 | |||||||||
Total comprehensive incom e |
9,638 | 2,190 | 8,982 | |||||||||
Sale/repurchase of own shares |
| 43 | 163 | |||||||||
Long-term variable compensation plans |
21 | 54 | 150 | |||||||||
Dividends to shareholders¹¾ |
-6,712 | -5,053 | -5,996 | |||||||||
Transactions ith non-controlling interests |
| 1 | | |||||||||
|
|
|
|
|
|
|||||||
Closing balance |
88,124 | 79,113 | 85,177 | |||||||||
|
|
|
|
|
|
1) | Includes accrual of SEK 6,668 (4,978) million in Jan-Mar for the dividend approved by the Annual General Meeting on March 30, 2021 (March 31, 2020). |
Condensed consolidated income statement isolated quarters
2021 | 2020 | |||||||||||||||||||
Isolated quarters, SEK million |
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
Net sales |
49,778 | 69,590 | 57,472 | 55,578 | 49,750 | |||||||||||||||
Cost of sales |
-28,483 | -41,333 | -32,710 | -34,661 | -29,962 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Gross incom e |
21,295 | 28,257 | 24,762 | 20,917 | 19,788 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Research and development expenses |
-9,576 | -10,433 | -10,101 | -10,035 | -9,145 | |||||||||||||||
Selling and administrative expenses |
-6,188 | -7,402 | -5,992 | -7,052 | -6,238 | |||||||||||||||
Impairment losses on trade receivables |
-212 | 264 | -28 | 42 | -160 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Operating expenses |
-15,976 | -17,571 | -16,121 | -17,045 | -15,543 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Otheroperating income and expenses |
13 | 381 | 61 | 131 | 89 | |||||||||||||||
Share in earnings of JV and associated companies |
-71 | -59 | -59 | -152 | -28 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Earnings before financial items and income tax (EBIT) |
5,261 | 11,008 | 8,643 | 3,851 | 4,306 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Financial income and expenses, net |
-533 | -95 | 109 | 292 | -902 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income after financial items |
4,728 | 10,913 | 8,752 | 4,143 | 3,404 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Income tax |
-1,560 | -3,721 | -3,186 | -1,558 | -1,124 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net incom e |
3,168 | 7,192 | 5,566 | 2,585 | 2,280 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income (loss) attributable to: |
||||||||||||||||||||
Owners of the Parent Company |
3,187 | 7,522 | 5,353 | 2,452 | 2,156 | |||||||||||||||
Non-controlling interests |
-19 | -330 | 213 | 133 | 124 | |||||||||||||||
Otherinform ation |
||||||||||||||||||||
Average number of shares, basic (million) |
3,328 | 3,328 | 3,326 | 3,322 | 3,317 | |||||||||||||||
Earnings per share, basic (SEK) ¹) |
0.96 | 2.26 | 1.61 | 0.74 | 0.65 | |||||||||||||||
Earnings per share, diluted (SEK) ² ) |
0.96 | 2.26 | 1.61 | 0.74 | 0.65 |
1) | Based on net income attributable to owners of the Parent Company. |
2) | Potential ordinary shares are not considered when their conversion to ordinary shares would increase earnings per share. |
20 Ericsson | First Quarter Report 2021 | Financial statements |
Condensed consolidated statement of cash flows isolated quarters
2021 | 2020 | |||||||||||||||||||
Isolated quarters,SEK m illion |
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
Operating activities |
||||||||||||||||||||
Netincom e |
3,168 | 7,192 | 5,566 | 2,585 | 2,280 | |||||||||||||||
Adjustm entsfor |
||||||||||||||||||||
Taxes |
1,584 | 3,846 | 3,482 | 1,871 | 1,237 | |||||||||||||||
Earnings/ dividends in JV and associated companies |
76 | 115 | 74 | 155 | 30 | |||||||||||||||
Depreciation, amortization and impairment losses |
1,935 | 2,293 | 2,105 | 2,156 | 2,120 | |||||||||||||||
Other |
143 | 190 | -320 | -215 | 792 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
6,906 | 13,636 | 10,907 | 6,552 | 6,459 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Changesin operating netassets |
||||||||||||||||||||
Inventories |
-1,235 | 3,753 | -1,578 | -1,253 | -538 | |||||||||||||||
Custom erfinance,currentand non-current |
219 | -119 | -635 | 307 | 817 | |||||||||||||||
Trade receivablesand contractassets |
1,979 | -7,231 | -1,513 | 0 | 5,559 | |||||||||||||||
Trade payables |
-4,112 | 2,999 | -624 | 4,104 | -2,176 | |||||||||||||||
Provisionsand post-em ploym entbenefits |
523 | 199 | -1,897 | -1,189 | 218 | |||||||||||||||
Contractliabilities |
4,454 | -2,046 | -1,501 | -1,000 | 3,987 | |||||||||||||||
Otheroperating assetsand liabilities,net |
-5,681 | 3,768 | 3,228 | -1,167 | -8,109 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
-3,853 | 1,323 | -4,520 | -198 | -242 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Interestreceived |
242 | 188 | 96 | 347 | 132 | |||||||||||||||
Interestpaid |
-292 | -344 | -187 | -513 | -390 | |||||||||||||||
Taxespaid/received |
202 | -900 | -1,017 | -739 | -1,657 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Cash flow from operating activities |
3,205 | 13,903 | 5,279 | 5,449 | 4,302 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Investing activities |
||||||||||||||||||||
Investm entsinproperty,plantand equipm ent |
-915 | -1,090 | -963 | -1,327 | -1,113 | |||||||||||||||
Salesofproperty,plantand equipm ent |
24 | 104 | 55 | 69 | 26 | |||||||||||||||
Acquisitions/divestm entsofsubs.and otheroperations,net¹â¾ |
5 | -9,256 | -89 | -45 | -208 | |||||||||||||||
Productdevelopm ent |
-204 | -177 | -167 | -211 | -262 | |||||||||||||||
Otherinvesting activities |
-5 | 668 | 301 | -126 | -42 | |||||||||||||||
Interest-bearing securities |
161 | 1,189 | -246 | 1,141 | -3,432 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Cash flow from investing activities |
-934 | -8,562 | -1,109 | -499 | -5,031 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Financing activities |
||||||||||||||||||||
Proceeds from issuance of long-term debt |
77 | 2,213 | 83 | 579 | 344 | |||||||||||||||
Repaymentoflong-term debt |
-5,242 | -8,036 | -160 | -544 | -291 | |||||||||||||||
Dividendspaid |
-5 | -3,456 | -42 | -2,489 | -9 | |||||||||||||||
Repaym entoflease liabilities |
-548 | -636 | -567 | -618 | -596 | |||||||||||||||
Otherfinancing activities |
-449 | 1,436 | -200 | -1,486 | 1,983 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Cash flow from financing activities |
-6,167 | -8,479 | -886 | -4,558 | 1,431 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Effect of exchange rate changeson cash |
827 | -2,024 | -165 | -3,084 | 2,566 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net change in cash and cash equivalents |
-3,069 | -5,162 | 3,119 | -2,692 | 3,268 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Cash and cash equivalents,beginning ofperiod |
43,612 | 48,774 | 45,655 | 48,347 | 45,079 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Cash and cash equivalents,end ofperiod |
40,543 | 43,612 | 48,774 | 45,655 | 48,347 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
1) | Includes acquisition of Cradlepoint of SEK -9.5 b. in Q4 2020. |
21 Ericsson | First Quarter Report 2021 | Financial statements |
Condensed Parent Company income statement
Q1 | Jan-Dec | |||||||||||
SEK m illion |
2021 | 2020 | 2020 | |||||||||
Net sales |
| | | |||||||||
Cost of sales |
| | | |||||||||
Gross income |
| | | |||||||||
Operating expenses |
-173 | -251 | -1,378 | |||||||||
Other operating income and expenses |
614 | 580 | 2,866 | |||||||||
|
|
|
|
|
|
|||||||
EBIT |
441 | 329 | 1,488 | |||||||||
|
|
|
|
|
|
|||||||
Financial net |
352 | 693 | 6,845 | |||||||||
|
|
|
|
|
|
|||||||
Income after financial item s |
793 | 1,022 | 8,333 | |||||||||
|
|
|
|
|
|
|||||||
Transfers to (-)/from untaxed reserves |
| | -1,540 | |||||||||
Income tax |
-126 | -174 | -408 | |||||||||
|
|
|
|
|
|
|||||||
Net incom e |
667 | 848 | 6,385 | |||||||||
|
|
|
|
|
|
Condensed Parent Company statement of comprehensive income (loss)
Q1 | Jan-Dec | |||||||||||
SEK m illion |
2021 | 2020 | 2020 | |||||||||
Netincom e |
667 | 848 | 6,385 | |||||||||
Revaluation of borrowings due to change in creditrisk |
-55 | 1,725 | 99 | |||||||||
Tax on items that will not be reclassified to profit or loss |
11 | -355 | -20 | |||||||||
Other comprehensive income, net of tax |
-44 | 1,370 | 79 | |||||||||
|
|
|
|
|
|
|||||||
Total comprehensive income |
623 | 2,218 | 6,464 | |||||||||
|
|
|
|
|
|
22 Ericsson | First Quarter Report 2020 | Financial statements |
Condensed Parent Company balance sheet
Mar31 | Dec31 | |||||||
SEK m illion |
2021 | 2020 | ||||||
Assets |
||||||||
Fixed assets |
||||||||
Intangibleassets |
19 | 26 | ||||||
Tangibleassets |
461 | 460 | ||||||
Financialassets¹â¾ |
112,737 | 104,989 | ||||||
|
|
|
|
|||||
113,217 | 105,475 | |||||||
|
|
|
|
|||||
Currentassets |
||||||||
Receivables |
24,611 | 30,230 | ||||||
Short-term investm ents |
4,337 | 6,621 | ||||||
Cash and cash equivalents |
25,262 | 28,775 | ||||||
|
|
|
|
|||||
54,210 | 65,626 | |||||||
|
|
|
|
|||||
Totalassets |
167,427 | 171,101 | ||||||
|
|
|
|
|||||
Stockholdersequity,provisionsand liabilities |
||||||||
Equity |
||||||||
Restricted equity |
48,164 | 48,164 | ||||||
Non-restricted equity |
27,888 | 33,915 | ||||||
76,052 | 82,079 | |||||||
Provisions |
336 | 343 | ||||||
Non-currentliabilities |
23,135 | 22,111 | ||||||
Currentliabilities |
67,904 | 66,568 | ||||||
|
|
|
|
|||||
Totalstockholdersequity,provisionsand liabilities |
167,427 | 171,101 | ||||||
|
|
|
|
|||||
Of which interest-bearing securities, non-current |
23,454 | 21,597 |
23 Ericsson | First Quarter Report 2021 | Financial statements |
Accounting policies and Explanatory notes (unaudited)
24 Ericsson | First Quarter Report 2021 | Accounting policies and Explanatory notes |
Net sales by segment by quarter
2021 | 2020 | |||||||||||||||||||
Isolated quarters, SEK million |
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
Networks |
36,274 | 49,366 | 41,659 | 39,827 | 35,126 | |||||||||||||||
Of which Products |
27,495 | 37,523 | 30,992 | 28,966 | 24,748 | |||||||||||||||
Of which Services |
8,779 | 11,843 | 10,667 | 10,861 | 10,378 | |||||||||||||||
Digital Services |
6,898 | 12,671 | 8,733 | 8,575 | 7,345 | |||||||||||||||
Of which Products |
3,581 | 7,430 | 4,621 | 4,598 | 3,798 | |||||||||||||||
Of which Services |
3,317 | 5,241 | 4,112 | 3,977 | 3,547 | |||||||||||||||
Managed Services |
4,865 | 5,815 | 5,498 | 5,573 | 5,714 | |||||||||||||||
Emerging Business and Other |
1,741 | 1,738 | 1,582 | 1,603 | 1,565 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
49,778 | 69,590 | 57,472 | 55,578 | 49,750 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
2021 | 2020 | |||||||||||||||||||
Sequential change, percent |
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
Networks |
-27 | % | 19 | % | 5 | % | 13 | % | -21 | % | ||||||||||
Of which Products |
-27 | % | 21 | % | 7 | % | 17 | % | -21 | % | ||||||||||
Of which Services |
-26 | % | 11 | % | -2 | % | 5 | % | -22 | % | ||||||||||
Digital Services |
-46 | % | 45 | % | 2 | % | 17 | % | -44 | % | ||||||||||
Of which Products |
-52 | % | 61 | % | 1 | % | 21 | % | -48 | % | ||||||||||
Of which Services |
-37 | % | 27 | % | 3 | % | 12 | % | -39 | % | ||||||||||
Managed Services |
-16 | % | 6 | % | -1 | % | -2 | % | -19 | % | ||||||||||
Emerging Business and Other |
0 | % | 10 | % | -1 | % | 2 | % | -10 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
-28 | % | 21 | % | 3 | % | 12 | % | -25 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
2021 | 2020 | |||||||||||||||||||
Year over year change, percent |
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
Networks |
3 | % | 11 | % | 6 | % | 5 | % | 5 | % | ||||||||||
Of which Products |
11 | % | 20 | % | 13 | % | 8 | % | 4 | % | ||||||||||
Of which Services |
-15 | % | -11 | % | -9 | % | -2 | % | 7 | % | ||||||||||
Digital Services |
-6 | % | -4 | % | -12 | % | -5 | % | -6 | % | ||||||||||
Of which Products |
-6 | % | 1 | % | -17 | % | 0 | % | -4 | % | ||||||||||
Of which Services |
-6 | % | -10 | % | -4 | % | -9 | % | -9 | % | ||||||||||
Managed Services |
-15 | % | -17 | % | -14 | % | -12 | % | -2 | % | ||||||||||
Emerging Business and Other |
11 | % | 0 | % | -3 | % | -4 | % | -11 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
0 | % | 5 | % | 1 | % | 1 | % | 2 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
2021 | 2020 | |||||||||||||||||||
Year to date, SEK million |
Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||
Networks |
36,274 | 165,978 | 116,612 | 74,953 | 35,126 | |||||||||||||||
Of which Products |
27,495 | 122,229 | 84,706 | 53,714 | 24,748 | |||||||||||||||
Of which Services |
8,779 | 43,749 | 31,906 | 21,239 | 10,378 | |||||||||||||||
Digital Services |
6,898 | 37,324 | 24,653 | 15,920 | 7,345 | |||||||||||||||
Of which Products |
3,581 | 20,447 | 13,017 | 8,396 | 3,798 | |||||||||||||||
Of which Services |
3,317 | 16,877 | 11,636 | 7,524 | 3,547 | |||||||||||||||
Managed Services |
4,865 | 22,600 | 16,785 | 11,287 | 5,714 | |||||||||||||||
Emerging Business and Other |
1,741 | 6,488 | 4,750 | 3,168 | 1,565 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
49,778 | 232,390 | 162,800 | 105,328 | 49,750 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
2021 | 2020 | |||||||||||||||||||
Year over year change,, percent |
Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||
Networks |
3 | % | 7 | % | 5 | % | 5 | % | 5 | % | ||||||||||
Of which Products |
11 | % | 12 | %9%6%4% | ||||||||||||||||
Of which Services |
-15 | % | -5 | % | -2 | % | 2 | % | 7 | % | ||||||||||
Digital Services |
-6 | % | -6 | % | -8 | % | -5 | % | -6 | % | ||||||||||
Of which Products |
-6 | % | -5 | % | -8 | % | -2 | % | -4 | % | ||||||||||
Of which Services |
-6 | % | -8 | % | -7 | % | -9 | % | -9 | % | ||||||||||
Managed Services |
-15 | % | -12 | % | -9 | % | -7 | % | -2 | % | ||||||||||
Emerging Business and Other |
11 | % | -4 | % | -6 | % | -8 | % | -11 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
0 | % | 2 | % | 1 | % | 2 | % | 2 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
25 Ericsson | First Quarter Report 2021 | Alternative performance measures |
Gross income by segment by quarter
2021 | 2020 | |||||||||||||||||||
Isolated quarters, SEK million |
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
Networks |
16,714 | 21,430 | 19,375 | 16,022 | 15,586 | |||||||||||||||
Digital Services |
3,002 | 5,183 | 3,787 | 3,738 | 2,929 | |||||||||||||||
Managed Services |
942 | 1,031 | 1,093 | 955 | 933 | |||||||||||||||
Emerging Business and Other |
637 | 613 | 507 | 202 | 340 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
21,295 | 28,257 | 24,762 | 20,917 | 19,788 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
2021 | 2020 | |||||||||||||||||||
Year to date, SEK million |
Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||
Networks |
16,714 | 72,413 | 50,983 | 31,608 | 15,586 | |||||||||||||||
Digital Services |
3,002 | 15,637 | 10,454 | 6,667 | 2,929 | |||||||||||||||
Managed Services |
942 | 4,012 | 2,981 | 1,888 | 933 | |||||||||||||||
Emerging Business and Other |
637 | 1,662 | 1,049 | 542 | 340 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
21,295 | 93,724 | 65,467 | 40,705 | 19,788 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
EBIT (loss) by segment by quarter
2021 | 2020 | |||||||||||||||||||
Isolated quarters, SEK million |
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
Networks |
7,240 | 10,604 | 9,165 | 5,255 | 5,827 | |||||||||||||||
Digital Services |
-1,519 | 499 | -591 | -697 | -1,417 | |||||||||||||||
Managed Services |
313 | 401 | 491 | 263 | 408 | |||||||||||||||
Emerging Business and Other |
-773 | -496 | -422 | -970 | -512 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
5,261 | 11,008 | 8,643 | 3,851 | 4,306 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
2021 | 2020 | |||||||||||||||||||
Year to date, SEK million |
Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||
Networks |
7,240 | 30,851 | 20,247 | 11,082 | 5,827 | |||||||||||||||
Digital Services |
-1,519 | -2,206 | -2,705 | -2,114 | -1,417 | |||||||||||||||
M managed Services |
313 | 1,563 | 1,162 | 671 | 408 | |||||||||||||||
Emerging Business and Other |
-773 | -2,400 | -1,904 | -1,482 | -512 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
5,261 | 27,808 | 16,800 | 8,157 | 4,306 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
26 Ericsson | First Quarter Report 2021 | Alternative performance measures |
Net sales by market area by quarter
2021 | 2020 | |||||||||||||||||||
Isolated quarters, SEK million |
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
South East Asia, Oceania and India |
6,676 | 9,748 | 7,801 | 6,582 | 5,917 | |||||||||||||||
North East Asia |
6,491 | 12,823 | 8,814 | 7,790 | 3,907 | |||||||||||||||
North America |
17,081 | 19,101 | 18,356 | 18,407 | 17,911 | |||||||||||||||
Europe and Latin America ¹) |
12,647 | 17,125 | 13,318 | 13,061 | 12,241 | |||||||||||||||
Middle East and Africa |
4,393 | 6,518 | 5,520 | 5,431 | 5,829 | |||||||||||||||
Other¹)2) |
2,490 | 4,275 | 3,663 | 4,307 | 3,945 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
49,778 | 69,590 | 57,472 | 55,578 | 49,750 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
1) Of which in Sweden |
389 | 363 | 249 | 284 | 227 | |||||||||||||||
2) Of which in EU |
6,801 | 8,874 | 7,090 | 7,278 | 6,259 | |||||||||||||||
2021 | 2020 | |||||||||||||||||||
Sequential change, percent |
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
South East Asia, Oceania and India |
-32 | % | 25 | % | 19 | % | 11 | % | -36 | % | ||||||||||
North East Asia |
-49 | % | 45 | % | 13 | % | 99 | % | -60 | % | ||||||||||
North America |
-11 | % | 4 | % | 0 | % | 3 | % | 3 | % | ||||||||||
Europe and Latin America ¹) |
-26 | % | 29 | % | 2 | % | 7 | % | -30 | % | ||||||||||
Middle East and Africa |
-33 | % | 18 | % | 2 | % | -7 | % | -31 | % | ||||||||||
Other¹ |
-42 | % | 17 | % | -15 | % | 9 | % | -5 | % | ||||||||||
Total |
-28 | % | 21 | % | 3 | % | 12 | % | -25 | % | ||||||||||
1) Of which in Sweden |
7 | % | 46 | % | -12 | % | 25 | % | -3 | % | ||||||||||
2) Of which in EU |
-23 | % | 25 | % | -3 | % | 16 | % | -29 | % | ||||||||||
2021 | 2020 | |||||||||||||||||||
Year over year change, percent |
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
South East Asia, Oceania and India |
13 | % | 6 | % | 5 | % | -5 | % | -4 | % | ||||||||||
North East Asia |
66 | % | 32 | % | 39 | % | 20 | % | 2 | % | ||||||||||
North America |
-5 | % | 10 | % | -3 | % | 4 | % | 11 | % | ||||||||||
Europe and Latin America ¹ |
3 | % | -2 | % | -7 | % | -7 | % | -7 | % | ||||||||||
Middle East and Africa |
-25 | % | -23 | % | -9 | % | -4 | % | 8 | % | ||||||||||
Other¹ |
-37 | % | 3 | % | -8 | % | 10 | % | -7 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
0 | % | 5 | % | 1 | % | 1 | % | 2 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
1) Of which in Sweden |
71 | % | 54 | % | 1815 | % | 91 | % | 18 | % | ||||||||||
2) Of which in EU |
9 | % | 1 | % | -4 | % | 5 | % | -4 | % | ||||||||||
2021 | 2020 | |||||||||||||||||||
Year to date, SEK million |
Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||
South East Asia, Oceania and India |
6,676 | 30,048 | 20,300 | 12,499 | 5,917 | |||||||||||||||
North East Asia |
6,491 | 33,334 | 20,511 | 11,697 | 3,907 | |||||||||||||||
North America |
17,081 | 73,775 | 54,674 | 36,318 | 17,911 | |||||||||||||||
Europe and Latin America ¹ |
12,647 | 55,745 | 38,620 | 25,302 | 12,241 | |||||||||||||||
Middle East and Africa |
4,393 | 23,298 | 16,780 | 11,260 | 5,829 | |||||||||||||||
Other¹ |
2,490 | 16,190 | 11,915 | 8,252 | 3,945 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
49,778 | 232,390 | 162,800 | 105,328 | 49,750 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
1) Of which in Sweden |
389 | 1,123 | 760 | 511 | 227 | |||||||||||||||
2) Of which in EU |
6,801 | 29,501 | 20,627 | 13,537 | 6,259 | |||||||||||||||
2021 | 2020 | |||||||||||||||||||
Yearto date,yearoveryearchange,percent |
Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||
South EastAsia,Oceania and India |
13 | % | 1 | % | -1 | % | -5 | % | -4 | % | ||||||||||
North EastAsia |
66 | % | 26 | % | 23 | % | 13 | % | 2 | % | ||||||||||
North Am erica |
-5 | % | 5 | % | 3 | % | 7 | % | 11 | % | ||||||||||
Europe and Latin Am erica ¹ |
3 | % | -6 | % | -7 | % | -7 | % | -7 | % | ||||||||||
M iddleEastand Africa |
-25 | % | -9 | % | -2 | % | 2 | % | 8 | % | ||||||||||
Other¹ |
-37 | % | -1 | % | -2 | % | 1 | % | -7 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
0 | % | 2 | % | 1 | % | 2 | % | 2 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
¹) Of which in Sweden |
71 | % | 91 | % | 115 | % | 50 | % | 18 | % | ||||||||||
²) Of which in EU |
9 | % | 0 | % | -1 | % | 1 | % | -4 | % |
27 Ericsson | First Quarter Report 2021 | Alternative performance measures |
Net sales by market area by segment
Q1 2021 | ||||||||||||||||||||
SEK million |
Networks | Digital Services |
Managed Services |
Emerging Business and Other |
Total | |||||||||||||||
South East Asia, Oceania and India |
4,843 | 765 | 1,061 | 7 | 6,676 | |||||||||||||||
North East Asia |
5,391 | 859 | 170 | 71 | 6,491 | |||||||||||||||
North America |
14,954 | 1,478 | 636 | 13 | 17,081 | |||||||||||||||
Europe and Latin America |
7,957 | 2,483 | 2,109 | 98 | 12,647 | |||||||||||||||
Middle East and Africa |
2,348 | 1,152 | 889 | 4 | 4,393 | |||||||||||||||
Other |
781 | 161 | 0 | 1,548 | 2,490 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
36,274 | 6,898 | 4,865 | 1,741 | 49,778 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Share of total |
73 | % | 14 | % | 10 | % | 3 | % | 100 | % | ||||||||||
Q1 2021 | ||||||||||||||||||||
Sequential change, percent |
Networks | Digital Services |
Managed Services |
Emerging Business and Other |
Total | |||||||||||||||
South East and, Oceania and India |
-33 | % | -45 | % | -5 | % | -13 | % | -32 | % | ||||||||||
North East Asia |
-49 | % | -56 | % | -42 | % | 48 | % | -49 | % | ||||||||||
North America |
-4 | % | -46 | % | -19 | % | -41 | % | -11 | % | ||||||||||
Europe and Latin America |
-22 | % | -41 | % | -20 | % | -3 | % | -26 | % | ||||||||||
Middle East and Africa |
-35 | % | -40 | % | -10 | % | -33 | % | -33 | % | ||||||||||
Other |
-65 | % | -65 | % | | 0 | % | -42 | % | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
-27 | % | -46 | % | -16 | % | 0 | % | -28 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Q1 2021 | ||||||||||||||||||||
Year over year change, percent |
Networks | Digital Services |
Managed Services |
Emerging Business and Other |
Total | |||||||||||||||
South East Asia, Oceania and India |
15 | % | -1 | % | 15 | % | -59 | % | 13 | % | ||||||||||
North East Asia |
94 | % | 0 | % | -16 | % | 8 | % | 66 | % | ||||||||||
North America |
-2 | % | -4 | % | -43 | % | 8 | % | -5 | % | ||||||||||
Europe and Latin America |
10 | % | 4 | % | -18 | % | 14 | % | 3 | % | ||||||||||
Middle East and Africa |
-34 | % | -14 | % | -2 | % | -43 | % | -25 | % | ||||||||||
Other |
-63 | % | -64 | % | -100 | % | 12 | % | -37 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
3 | % | -6 | % | -15 | % | 11 | % | 0 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
Top 5 countries in sales
Q1 | Jan-Dec | |||||||||||
Country, percentage of net sales |
2021 | 2020 | 2020 | |||||||||
United States |
36 | % | 38 | % | 33 | % | ||||||
Japan |
8 | % | 4 | % | 5 | % | ||||||
Australia |
4 | % | 3 | % | 4 | % | ||||||
India |
3 | % | 3 | % | 3 | % | ||||||
United Kingdom |
3 | % | 3 | % | 3 | % |
1) | Based on Q1 2021. |
28 Ericsson | First Quarter Report 2021 | Alternative performance measures |
IPR licensing revenues by segment by quarter
Provisions
2021 | 2020 | |||||||||||||||||||
Isolated quarters, SEK million |
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
Networks |
671 | 2,105 | 1,773 | 2,282 | 2,019 | |||||||||||||||
Digital Services |
147 | 463 | 389 | 501 | 443 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
818 | 2,568 | 2,162 | 2,783 | 2,462 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
2021 | 2020 | |||||||||||||||||||
Year to date, SEK million |
Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||
Networks |
671 | 8,179 | 6,074 | 4,301 | 2,019 | |||||||||||||||
Digital Services |
147 | 1,796 | 1,333 | 944 | 443 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
818 | 9,975 | 7,407 | 5,245 | 2,462 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
Note 4 Provisions
Provisions
2021 | 2020 | |||||||||||||||||||
Isolated quarters, SEK million |
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
Opening balance |
10,466 | 10,922 | 10,603 | 11,060 | 10,923 | |||||||||||||||
Additions |
1,753 | 1,245 | 1,093 | 2,116 | 793 | |||||||||||||||
Utilization/Cash out |
-979 | -761 | -475 | -2,066 | -673 | |||||||||||||||
Of which restructuring |
-336 | -332 | -160 | -137 | -186 | |||||||||||||||
Reversal of excess amounts |
-339 | -673 | -172 | -192 | -124 | |||||||||||||||
Reclassification, translation difference and other |
144 | -267 | -127 | -315 | 141 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Closing balance |
11,045 | 10,466 | 10,922 | 10,603 | 11,060 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Of which restructuring |
950 | 1,200 | 1,659 | 1,594 | 1,202 | |||||||||||||||
2021 | 2020 | |||||||||||||||||||
Year to date, SEK million |
Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||
Opening balance |
10,466 | 10,923 | 10,923 | 10,923 | 10,923 | |||||||||||||||
Additions |
1,753 | 5,247 | 4,002 | 2,909 | 793 | |||||||||||||||
Utilization/Cash out |
-979 | -3,975 | -3,214 | -2,739 | -673 | |||||||||||||||
of which restructuring |
-336 | -815 | -483 | -323 | -186 | |||||||||||||||
Reversal of excess amounts |
-339 | -1,161 | -488 | -316 | -124 | |||||||||||||||
Reclassification, translation difference and other |
144 | -568 | -301 | -174 | 141 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Closing balance |
11,045 | 10,466 | 10,922 | 10,603 | 11,060 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Of which restructuring |
950 | 1,200 | 1,659 | 1,594 | 1,202 |
29 Ericsson | First Quarter Report 2021 | Alternative performance measures |
Note 5 Financial risk management
There have been no changes to the classification of financial instruments or fair value hierarchy categorization from that presented in the latest Annual Report. Where Level 2 and Level 3 fair value hierarchies apply, the inputs and valuation methods used remained unchanged. The book values and fair values of financial instruments are as follows:
Financial instruments
SEK billion |
Mar31 2021 | Dec 31 2020 | ||||||||||||||||||||||||||||||
Fair value hierarchy level | Fair value hierarchy level | |||||||||||||||||||||||||||||||
Carrying value |
Level 1 | Level2 | Level 3 | Carrying value |
Level 4 | Level2 | Level 3 | |||||||||||||||||||||||||
Assets at fair value through profit loss |
||||||||||||||||||||||||||||||||
Customer finance ¹) |
3.0 | | | 3.0 | 3.1 | | | 3.1 | ||||||||||||||||||||||||
Interest bearing securities |
27.6 | 27.6 | | | 28.1 | 28.1 | | | ||||||||||||||||||||||||
Cash equivalents 2) |
18.2 | | 18.2 | | 23.6 | | 23.6 | | ||||||||||||||||||||||||
Other financial assets |
1.5 | | | 1.5 | 1.5 | | | 1.5 | ||||||||||||||||||||||||
Other current assets |
0.6 | | 0.6 | | 1.5 | | 1.5 | | ||||||||||||||||||||||||
Assets at fair value through OCI |
| | | | | | | | ||||||||||||||||||||||||
Trade receivables |
42.1 | | | 42.1 | 42.1 | | | 42.1 | ||||||||||||||||||||||||
Assets at mortized costs |
| | | | | | | | ||||||||||||||||||||||||
Interest bearing securities |
0.5 | | | | 0.4 | | | | ||||||||||||||||||||||||
Cash equivalents 2) |
2.4 | | | | 3.6 | | | | ||||||||||||||||||||||||
Other financial assets |
0.5 | | | | 0.5 | | | | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total financial assets |
96.4 | 104.4 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Financial liabilities at resignated FVTPL |
||||||||||||||||||||||||||||||||
Parent company borrowings |
-23.2 | -14.4 | -8.8 | | -27.2 | -18.9 | -8.3 | | ||||||||||||||||||||||||
| | | | | | | | |||||||||||||||||||||||||
Financial liabilities at FVTPL |
| | | | | | | | ||||||||||||||||||||||||
Other current liabilities |
-0.5 | | -0.5 | | -0.2 | | -0.2 | | ||||||||||||||||||||||||
Liabilities at mortized cost |
| | | | | | | | ||||||||||||||||||||||||
Trade payables |
-29.1 | | | | -32.0 | | | | ||||||||||||||||||||||||
Borrowings |
-2.5 | | | | -2.9 | | | | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Financialliabilities |
-55.3 | -62.3 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1) | Year to date movements of customer finance receivables are as follows: additions of SEK 5.9 billion, disposals and repayments of SEK 6.0 billion and revaluation gain of SEK 0 billion. |
2) | Total Cash and cash equivalent is SEK 40.5 (43.6) billion, of which SEK 20.6 (27.2) billion relating to Cash equivalents are presented in the table above. |
Exchange rates used in the consolidation
Q1 | Jan-Dec | |||||||||||
2021 | 2020 | 2020 | ||||||||||
SEK/EUR -closing rate |
10.22 | 11.09 | 10.06 | |||||||||
SEK/USD -closing rate |
8.71 | 10.13 | 8.19 |
30 Ericsson | First Quarter Report 2021 | Alternative performance measures |
Information on investments
Investments in assets subject to depreciation, amortization, impairment and write-downs
2021 | 2020 | |||||||||||||||||||
Isolated quarters,SEKmillion |
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
Additions |
||||||||||||||||||||
Property, plant and equipment |
915 | 1,090 | 963 | 1,327 | 1,113 | |||||||||||||||
Capitalized development expenses |
204 | 177 | 167 | 211 | 262 | |||||||||||||||
IPR, brands and other intangible assets |
4 | 124 | | 97 | 1 | |||||||||||||||
Total |
1,123 | 1,391 | 1,130 | 1,635 | 1,376 | |||||||||||||||
Depreciation,amortization and im pairment losses |
||||||||||||||||||||
Property, plant and equipment |
874 | 1,186 | 916 | 1,003 | 1,009 | |||||||||||||||
Capitalized development expenses |
224 | 230 | 230 | 272 | 174 | |||||||||||||||
Goodwill, IPR, brands and other intangible assets |
283 | 276 | 365 | 258 | 321 | |||||||||||||||
Right-of-use assets |
554 | 601 | 594 | 623 | 616 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
1,935 | 2,293 | 2,105 | 2,156 | 2,120 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
2021 |
|
2020 |
|
|
||||||||||||||||
Yearto date,SEKmillion |
Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||
Additions |
||||||||||||||||||||
Property, plant and equipment |
915 | 4,493 | 3,403 | 2,440 | 1,113 | |||||||||||||||
Capitalized development expenses |
204 | 817 | 640 | 473 | 262 | |||||||||||||||
IPR, brands and other intangible assets |
4 | 222 | 98 | 98 | 1 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
1,123 | 5,532 | 4,141 | 3,011 | 1,376 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Depreciation, amortization and impairment losses |
||||||||||||||||||||
Property, plant and equipment |
874 | 4,114 | 2,928 | 2,012 | 1,009 | |||||||||||||||
Capitalized development expenses |
224 | 906 | 676 | 446 | 174 | |||||||||||||||
Goodwill, IPR, brands and other intangible assets |
283 | 1,220 | 944 | 579 | 321 | |||||||||||||||
Right-of-use assets |
554 | 2,434 | 1,833 | 1,239 | 616 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
1,935 | 8,674 | 6,381 | 4,276 | 2,120 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
Note 7 Contingent liabilities and Assets pledged as collateral
Contingent liabilities and Assets pledged as collateral
Mar31 2021 |
Dec31 2020 |
|||||||
SEKmillion | ||||||||
Contingent liabilities |
1,322 | 1,198 | ||||||
Assets pledged as collateral |
6,801 | 6,808 |
31 Ericsson | First Quarter Report 2021 | Alternative performance measures |
Number of shares and earnings per share
Q1 | Jan-Dec | |||||||||||
2021 | 2020 | 2020 | ||||||||||
Num berofshares,end ofperiod (m illion) |
3,334 | 3,334 | 3,334 | |||||||||
Of which class A-shares (million) |
262 | 262 | 262 | |||||||||
Of which class B-shares (million) |
3,072 | 3,072 | 3,072 | |||||||||
Num ber of treasury shares,end ofperiod (m illion) |
6 | 15 | 6 | |||||||||
Num ber of shares outstanding,basic,end of period ( million) |
3,328 | 3,319 | 3,328 | |||||||||
Num bersofsharesoutstanding,diluted,end ofperiod (million) |
3,328 | 3,329 | 3,331 | |||||||||
Average num beroftreasuryshares(m illion) |
6 | 17 | 11 | |||||||||
Average num berofsharesoutstanding,basic(million) |
3,328 | 3,317 | 3,323 | |||||||||
Average num berofsharesoutstanding,diluted (m illion)1) |
3,328 | 3,328 | 3,326 | |||||||||
Earningspershare,basic(SEK)²) |
0.96 | 0.65 | 5.26 | |||||||||
Earningspershare,diluted (SEK)1) |
0.96 | 0.65 | 5.26 |
1) | Potential ordinary shares are not considered when their conversion to ordinary shares would increase earnings per share. |
2) | Based on net income attributable to owners of the Parent Company. |
Number of employees
2021 | 2020 | |||||||||||||||||||
End ofperiod |
M ar31 | Dec31 | Sep 30 | Jun 30 | M ar31 | |||||||||||||||
South EastAsia,Oceania and India |
26,123 | 25,869 | 25,633 | 25,265 | 24,942 | |||||||||||||||
North EastAsia |
14,033 | 13,944 | 13,955 | 13,965 | 13,786 | |||||||||||||||
North Am erica |
10,161 | 10,175 | 9,537 | 9,785 | 9,718 | |||||||||||||||
Europe and Latin Am erica1) |
46,482 | 46,580 | 46,495 | 46,521 | 46,402 | |||||||||||||||
M iddleEastand Africa |
4,314 | 4,256 | 4,206 | 4,264 | 4,247 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
101,113 | 100,824 | 99,826 | 99,800 | 99,095 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
1) Of which Sweden |
13,379 | 13,173 | 13,046 | 12,884 | 12,746 |
32 Ericsson | First Quarter Report 2021 |
Alternative performance measures (unaudited)
Sales growth adjusted for comparable units and currency
Sales growth adjusted for the impact of acquisitions and divestments as well as the effects of foreign currency fluctuations. Also named organic growth.
2021 |
|
2020 |
|
|
||||||||||||||||
Isolated quarters,yearoveryearchange |
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
Reported netsales |
49,778 | 69,590 | 57,472 | 55,578 | 49,750 | |||||||||||||||
Acquired business |
-225 | -206 | -415 | -422 | -319 | |||||||||||||||
Net FX impact |
5,341 | 5,472 | 4,304 | -326 | -1,654 | |||||||||||||||
Com parablenetsales,excluding FX im pact |
54,894 | 74,856 | 61,361 | 54,830 | 47,777 | |||||||||||||||
Com parablequarternetsalesadj.foracq/divbusiness¹â¾ |
49,750 | 66,373 | 57,150 | 54,810 | 48,798 | |||||||||||||||
Salesgrow th adjusted forcom parableunitsand currency (% ) |
10 | % | 13 | % | 7 | % | 0 | % | -2 | % | ||||||||||
2021 |
|
2020 |
|
|
||||||||||||||||
Yearto date,yearoveryearchange |
Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||
Reported netsales |
49,778 | 232,390 | 162,800 | 105,328 | 49,750 | |||||||||||||||
Acquired business |
-225 | -1,362 | -1,156 | -741 | -319 | |||||||||||||||
Net FX impact |
5,341 | 7,796 | 2,324 | -1,980 | -1,654 | |||||||||||||||
Com parablenetsales,excluding FX im pact |
54,894 | 238,824 | 163,968 | 102,607 | 47,777 | |||||||||||||||
Com parablequarternetsalesadj.foracq/divbusiness¹â¾ |
49,750 | 227,132 | 160,758 | 103,608 | 48,798 | |||||||||||||||
Salesgrow th adjusted forcom parableunitsand currency (% ) |
10 | % | 5 | % | 2 | % | -1 | % | -2 | % |
1) | Adjusted for acquisition of Cradlepoint in November 2020. |
33 Ericsson | First Quarter Report 2021 | Alternative performance measures |
Items excluding restructuring charges
Gross income, operating expenses, and EBIT are presented excluding restructuring charges and, for certain measures, as a percentage of net sales. Operating income has been renamed to EBIT and Operating margin to EBIT margin. The definition on EBIT and EBIT margin remain unchanged.
2021 | 2020 | |||||||||||||||||||
Isolated quarters, SEK million |
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
Gross income |
21,295 | 28,257 | 24,762 | 20,917 | 19,788 | |||||||||||||||
Net sales |
49,778 | 69,590 | 57,472 | 55,578 | 49,750 | |||||||||||||||
Gross margin (%) |
42.8 | % | 40.6 | % | 43.1 | % | 37.6 | % | 39.8 | % | ||||||||||
Gross income |
21,295 | 28,257 | 24,762 | 20,917 | 19,788 | |||||||||||||||
Restructuring charges included in cost of sales |
62 | 5 | 73 | 312 | 335 | |||||||||||||||
Gross income excluding restructuring charges |
21,357 | 28,262 | 24,835 | 21,229 | 20,123 | |||||||||||||||
Net sales |
49,778 | 69,590 | 57,472 | 55,578 | 49,750 | |||||||||||||||
Gross margin excluding restructuring charges (%) |
42.9 | % | 40.6 | % | 43.2 | % | 38.2 | % | 40.4 | % | ||||||||||
Operating expenses |
-15,976 | -17,571 | -16,121 | -17,045 | -15,543 | |||||||||||||||
Restructuring charges included in R&D expenses |
| -21 | 244 | 227 | -39 | |||||||||||||||
Restructuring charges included in selling and administrative expenses |
15 | 8 | 13 | 144 | 5 | |||||||||||||||
Operating expenses excluding restructuring charges |
-15,961 | -17,584 | -15,864 | -16,674 | -15,577 | |||||||||||||||
EBIT |
5,261 | 11,008 | 8,643 | 3,851 | 4,306 | |||||||||||||||
Net sales |
49,778 | 69,590 | 57,472 | 55,578 | 49,750 | |||||||||||||||
EBIT margin (%) |
10.6 | % | 15.8 | % | 15.0 | % | 6.9 | % | 8.7 | % | ||||||||||
EBIT |
5,261 | 11,008 | 8,643 | 3,851 | 4,306 | |||||||||||||||
Total restructuring charges |
77 | -8 | 330 | 683 | 301 | |||||||||||||||
EBIT excluding restructuring charges |
5,338 | 11,000 | 8,973 | 4,534 | 4,607 | |||||||||||||||
Net sales |
49,778 | 69,590 | 57,472 | 55,578 | 49,750 | |||||||||||||||
EBIT margin excluding restructuring charges (%) |
10.7 | % | 15.8 | % | 15.6 | % | 8.2 | % | 9.3 | % |
2021 | 2020 | |||||||||||||||||||
Year to date, SEK million |
Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||
Gross income |
21,295 | 93,724 | 65,467 | 40,705 | 19,788 | |||||||||||||||
Net sales |
49,778 | 232,390 | 162,800 | 105,328 | 49,750 | |||||||||||||||
Gross margin (%) |
42.8 | % | 40.3 | % | 40.2 | % | 38.6 | % | 39.8 | % | ||||||||||
Gross income |
21,295 | 93,724 | 65,467 | 40,705 | 19,788 | |||||||||||||||
Restructuring charges included in cost of sales |
62 | 725 | 720 | 647 | 335 | |||||||||||||||
Gross income excluding restructuring charges |
21,357 | 94,449 | 66,187 | 41,352 | 20,123 | |||||||||||||||
Net sales |
49,778 | 232,390 | 162,800 | 105,328 | 49,750 | |||||||||||||||
Gross margin excluding restructuring charges (%) |
42.9 | % | 40.6 | % | 40.7 | % | 39.3 | % | 40.4 | % | ||||||||||
Operating expenses |
-15,976 | -66,280 | -48,709 | -32,588 | -15,543 | |||||||||||||||
Restructuring charges included in R&D expenses |
| 411 | 432 | 188 | -39 | |||||||||||||||
Restructuring charges included in selling and administrative expenses |
15 | 170 | 162 | 149 | 5 | |||||||||||||||
Operating expenses excluding restructuring charges |
-15,961 | -65,699 | -48,115 | -32,251 | -15,577 | |||||||||||||||
EBIT |
5,261 | 27,808 | 16,800 | 8,157 | 4,306 | |||||||||||||||
Net sales |
49,778 | 232,390 | 162,800 | 105,328 | 49,750 | |||||||||||||||
EBIT margin (% ) |
10.6 | % | 12.0 | % | 10.3 | % | 7.7 | % | 8.7 | % | ||||||||||
EBIT |
5,261 | 27,808 | 16,800 | 8,157 | 4,306 | |||||||||||||||
Total restructuring charges |
77 | 1,306 | 1,314 | 984 | 301 | |||||||||||||||
EBIT excluding restructuring charges |
5,338 | 29,114 | 18,114 | 9,141 | 4,607 | |||||||||||||||
Net sales |
49,778 | 232,390 | 162,800 | 105,328 | 49,750 | |||||||||||||||
EBIT margin excluding restructuring charges (%) |
10.7 | % | 12.5 | % | 11.1 | % | 8.7 | % | 9.3 | % |
34 Ericsson | First Quarter Report 2021 | Alternative performance measures |
EBITA and EBITA margin / EBITA and EBITA margin excluding restructuring charges
Earnings before interest, taxes, amortizations, write-downs of acquired intangibles and excluding restructuring charges also expressed as a percentage of net sales.
EBITA and EBITA margin excluding restructuring charges has been added to the APM.
2021 | 2020 | |||||||||||||||||||
Isolated quarters, SEK million |
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
Net income |
3,168 | 7,192 | 5,566 | 2,585 | 2,280 | |||||||||||||||
Taxes |
1,560 | 3,721 | 3,186 | 1,558 | 1,124 | |||||||||||||||
Financial income and expenses, net |
533 | 95 | -109 | -292 | 902 | |||||||||||||||
A mortizations and write-downs of acquired intangibles |
283 | 276 | 365 | 258 | 321 | |||||||||||||||
EBITA |
5,544 | 11,284 | 9,008 | 4,109 | 4,627 | |||||||||||||||
Net sales |
49,778 | 69,590 | 57,472 | 55,578 | 49,750 | |||||||||||||||
EBITA margin (% ) |
11.1 | % | 16.2 | % | 15.7 | % | 7.4 | % | 9.3 | % | ||||||||||
Restructuring charges |
77 | -8 | 330 | 683 | 301 | |||||||||||||||
EBITA excluding restructuring charges |
5,621 | 11,276 | -28,778 | 4,792 | 4,928 | |||||||||||||||
EBITA margin excluding restructuring charges (% ) |
11.3 | % | 16.2 | % | -50.1 | % | 8.6 | % | 9.9 | % |
2021 | 2020 | |||||||||||||||||||
Year to date, SEK million |
Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||
Net income |
3,168 | 17,623 | 10,431 | 4,865 | 2,280 | |||||||||||||||
Taxes |
1,560 | 9,589 | 5,868 | 2,682 | 1,124 | |||||||||||||||
Financial income and expenses, net |
533 | 596 | 501 | 610 | 902 | |||||||||||||||
A mortizations and write-downs of acquired intangibles |
283 | 1,220 | 944 | 579 | 321 | |||||||||||||||
EBITA |
5,544 | 29,028 | 17,744 | 8,736 | 4,627 | |||||||||||||||
Net sales |
49,778 | 232,390 | 162,800 | 105,328 | 49,750 | |||||||||||||||
EBITA margin (% ) |
11.1 | % | 12.5 | % | 10.9 | % | 8.3 | % | 9.3 | % | ||||||||||
Restructuring charges |
77 | 1,306 | 1,314 | 984 | 301 | |||||||||||||||
EBITA excluding restructuring charges |
5,621 | 30,334 | 19,058 | 9,720 | 4,928 | |||||||||||||||
EBITA margin excluding restructuring charges (% ) |
11.3 | % | 13.1 | % | 11.7 | % | 9.2 | % | 9.9 | % |
Rolling four quarters of net sales and EBIT margin excluding restructuring charges (%)
Net sales, operating margin and restructuring charges as a sum of last four quarters.
2021 | 2020 | |||||||||||||||||||
Rolling fourquarters, SEK million |
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
Net sales |
232,418 | 232,390 | 229,173 | 228,828 | 228,060 | |||||||||||||||
EBIT |
28,763 | 27,808 | 22,925 | 10,086 | 9,974 | |||||||||||||||
Restructuring charges |
1,082 | 1,306 | 1,641 | 1,458 | 893 | |||||||||||||||
EBIT excl. restr. charges |
29,845 | 29,114 | 24,566 | 11,544 | 10,867 | |||||||||||||||
EBIT margin excl. restr.charges (% ) |
12.8 | % | 12.5 | % | 10.7 | % | 5.0 | % | 4.8 | % |
35 Ericsson | First Quarter Report 2021 | Alternative performance measures |
Gross cash and net cash, end of period
Gross cash: Cash and cash equivalents plus interest-bearing securities (current and non-current).
Net cash: Cash and cash equivalents plus interest-bearing securities (current and non-current) less borrowings (current and non-current).
2021 | 2020 | |||||||||||||||||||
SEK million |
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
Cash and cash equivalents |
40,543 | 43,612 | 48,774 | 45,655 | 48,347 | |||||||||||||||
+ Interest-bearing securities, current |
4,599 | 6,820 | 5,552 | 5,739 | 7,834 | |||||||||||||||
+ Interest-bearing securities, non- current |
23,477 | 21,613 | 23,898 | 24,025 | 23,335 | |||||||||||||||
Gross cash, end of period |
68,619 | 72,045 | 78,224 | 75,419 | 79,516 | |||||||||||||||
-Borrowings, current |
2,353 | 7,942 | 14,587 | 15,290 | 17,759 | |||||||||||||||
-Borrowings, non-current |
23,299 | 22,218 | 22,132 | 22,581 | 23,381 | |||||||||||||||
Net cash, end of period |
42,967 | 41,885 | 41,505 | 37,548 | 38,376 |
Total assets less non- interest- bearing provisions and liabilities.
2021 | 2020 | |||||||||||||||||||
SEK million |
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
Total assets |
270,319 | 271,530 | 277,187 | 276,778 | 292,307 | |||||||||||||||
Non- interest- bearing provision sand liabilities |
||||||||||||||||||||
Provisions, non-current |
2,337 | 2,886 | 2,378 | 2,240 | 2,703 | |||||||||||||||
Deferred tax liabilities |
1,049 | 1,089 | 1,102 | 1,164 | 1,060 | |||||||||||||||
Other non-current liabilities |
1,326 | 1,383 | 1,759 | 1,813 | 2,178 | |||||||||||||||
Provisions, current |
8,708 | 7,580 | 8,544 | 8,363 | 8,357 | |||||||||||||||
Contract liabilities |
32,054 | 26,440 | 29,393 | 31,532 | 34,265 | |||||||||||||||
Trade payables |
29,135 | 31,988 | 30,704 | 32,182 | 29,840 | |||||||||||||||
Other current liabilities |
40,522 | 38,174 | 37,905 | 34,834 | 40,521 | |||||||||||||||
Capitalem ployed |
155,188 | 161,990 | 165,402 | 164,650 | 173,383 |
Annualized net sales divided by average capital employed.
Annualization factor of four is used for isolated quarter.
Annualization factor of four is used for Jan-Mar, two is used for Jan-Jun, 4/3 is used for Jan-Sep and one is used for Jan-Dec.
2021 |
|
2020 |
|
|
||||||||||||||||
Isolated quarters, SEK million |
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
Net sales |
49,778 | 69,590 | 57,472 | 55,578 | 49,750 | |||||||||||||||
Annualized net sales |
199,112 | 278,360 | 229,888 | 222,312 | 199,000 | |||||||||||||||
Average capitalem ployed |
||||||||||||||||||||
Capital employed at beginning of period |
161,990 | 165,402 | 164,650 | 173,383 | 165,273 | |||||||||||||||
Capital employed at end of period |
155,188 | 161,990 | 165,402 | 164,650 | 173,383 | |||||||||||||||
Average capital employed |
158,589 | 163,696 | 165,026 | 169,017 | 169,328 | |||||||||||||||
Capital turnover (times) |
1.3 | 1.7 | 1.4 | 1.3 | 1.2 |
2021 | 2020 | |||||||||||||||||||
Year to date, SEK million |
Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||
Netsales |
49,778 | 232,390 | 162,800 | 105,328 | 49,750 | |||||||||||||||
Annualized netsales |
199,112 | 232,390 | 217,067 | 210,656 | 199,000 | |||||||||||||||
Average capitalem ployed |
||||||||||||||||||||
Capital employed at beginning of period |
161,990 | 165,273 | 165,273 | 165,273 | 165,273 | |||||||||||||||
Capital employed at end of period |
155,188 | 161,990 | 165,402 | 164,650 | 173,383 | |||||||||||||||
Average capital employed |
158,589 | 163,632 | 165,338 | 164,962 | 169,328 | |||||||||||||||
Capital turnover (times) |
1.3 | 1.4 | 1.3 | 1.3 | 1.2 |
36 Ericsson | First Quarter Report 2021 | Alternative performance measures |
The annualized total of EBIT as a percentage of average capital employed.
Annualization factor of four is used for isolated quarter.
Annualization factor of four is used for Jan-Mar, two is used for Jan-Jun, 4/3 is used for Jan-Sep and one is used for Jan-Dec.
2021 | 2020 | |||||||||||||||||||
Isolated quarters, SEK million |
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
EBIT |
5,261 | 11,008 | 8,643 | 3,851 | 4,306 | |||||||||||||||
Annualized EBIT |
21,044 | 44,032 | 34,572 | 15,404 | 17,224 | |||||||||||||||
Average capital employed |
||||||||||||||||||||
Capital employed at beginning of period |
161,990 | 165,402 | 164,650 | 173,383 | 165,273 | |||||||||||||||
Capital employed at end of period |
155,188 | 161,990 | 165,402 | 164,650 | 173,383 | |||||||||||||||
Average capital employed |
158,589 | 163,696 | 165,026 | 169,017 | 169,328 | |||||||||||||||
Return on capitalem ployed (% ) |
13.3 | % | 26.9 | % | 20.9 | % | 9.1 | % | 10.2 | % |
2021 | 2020 | |||||||||||||||||||
Year to date, SEK million |
Jan-M ar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-M ar | |||||||||||||||
EBIT |
5,261 | 27,808 | 16,800 | 8,157 | 4,306 | |||||||||||||||
Annualized EBIT |
21,044 | 27,808 | 22,400 | 16,314 | 17,224 | |||||||||||||||
Average capitalem ployed |
||||||||||||||||||||
Capital employed at beginning of period |
161,990 | 165,273 | 165,273 | 165,273 | 165,273 | |||||||||||||||
Capital employed at end of period |
155,188 | 161,990 | 165,402 | 164,650 | 173,383 | |||||||||||||||
Average capital employed |
158,589 | 163,632 | 165,338 | 164,962 | 169,328 | |||||||||||||||
Return on capitalem ployed (% ) |
13.3 | % | 17.0 | % | 13.5 | % | 9.9 | % | 10.2 | % |
Equity expressed as a percentage of total assets.
2021 | 2020 | |||||||||||||||||||
SEK million |
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
Total equity |
88,124 | 85,177 | 82,485 | 78,472 | 79,113 | |||||||||||||||
Total assets |
270,319 | 271,530 | 277,187 | 276,778 | 292,307 | |||||||||||||||
Equity ratio (% ) |
32.6 | % | 31.4 | % | 29.8 | % | 28.4 | % | 27.1 | % |
Annualized net income attributable to owners of the Parent Company as a percentage of average stockholders equity.
Annualization factor of four is used for isolated quarter.
Annualization factor of four is used for Jan-Mar, two is used for Jan-Jun, 4/3 is used for Jan-Sep and one is used for Jan-Dec.
2021 | 2020 | |||||||||||||||||||
Isolated quarters, SEK million |
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
Net income attributableto owners of the Parent Company |
3,187 | 7,522 | 5,353 | 2,452 | 2,156 | |||||||||||||||
Annualized |
12,748 | 30,088 | 21,412 | 9,808 | 8,624 | |||||||||||||||
Average stockholdersequity |
||||||||||||||||||||
Stockholders equity, beginning of period |
86,674 | 82,830 | 79,005 | 79,841 | 82,559 | |||||||||||||||
Stockholders equity, end of period |
89,782 | 86,674 | 82,830 | 79,005 | 79,841 | |||||||||||||||
Average stockholders equity |
88,228 | 84,752 | 80,918 | 79,423 | 81,200 | |||||||||||||||
Return on equity (% ) |
14.4 | % | 35.5 | % | 26.5 | % | 12.3 | % | 10.6 | % |
2021 | 2020 | |||||||||||||||||||
Year to date, SEK million |
Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||
Net income attributable to owners of the Parent Company |
3,187 | 17,483 | 9,961 | 4,608 | 2,156 | |||||||||||||||
Annualized |
12,748 | 17,483 | 13,281 | 9,216 | 8,624 | |||||||||||||||
Average stockholdersequity |
||||||||||||||||||||
Stockholders equity, beginning of period |
86,674 | 82,559 | 82,559 | 82,559 | 82,559 | |||||||||||||||
Stockholders equity, end of period |
89,782 | 86,674 | 82,830 | 79,005 | 79,841 | |||||||||||||||
Average stockholders equity |
88,228 | 84,617 | 82,695 | 80,782 | 81,200 | |||||||||||||||
Return on equity(% ) |
14.4 | % | 20.7 | % | 16.1 | % | 11.4 | % | 10.6 | % |
37 Ericsson | First Quarter Report 2021 | Alternative performance measures |
Adjusted earnings per share, diluted, excluding amortizations and write-downs of acquired intangible assets and excluding restructuring charges.
2021 | 2020 | |||||||||||||||||||
Isolated quarters, SEK |
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
Earnings per share, diluted |
0.96 | 2.26 | 1.61 | 0.74 | 0.65 | |||||||||||||||
Restructuring charges |
0.02 | 0.01 | 0.08 | 0.14 | 0.07 | |||||||||||||||
A mortizations and write-downs of acquired intangibles |
0.06 | 0.06 | 0.08 | 0.06 | 0.07 | |||||||||||||||
Adjusted earningspershare |
1.04 | 2.33 | 1.77 | 0.94 | 0.79 |
2021 | 2020 | |||||||||||||||||||
Year to date, SEK |
Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||
Earningspershare,diluted |
0.96 | 5.26 | 3.00 | 1.39 | 0.65 | |||||||||||||||
Restructuring charges |
0.02 | 0.30 | 0.29 | 0.21 | 0.07 | |||||||||||||||
Am ortizationsand w rite-downs of acquired intangibles |
0.06 | 0.27 | 0.21 | 0.13 | 0.07 | |||||||||||||||
Adjusted earningspershare |
1.04 | 5.83 | 3.50 | 1.73 | 0.79 |
Free cash flow before M&A / Free cash flow after M&A
Free cash flow before M&A: Cash flow from operating activities less net capital expenditures, other investments (excluding M&A) and repayment of lease liabilities.
Free cash flow after M&A: Cash flow from operating activities less net capital expenditures, other investments and repayment of
lease liabilities.
2021 | 2020 | |||||||||||||||||||
Isolated quarters, SEK million |
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
Cash flow from operating activities |
3,205 | 13,903 | 5,279 | 5,449 | 4,302 | |||||||||||||||
Net capitalexpendituresand otherinvestm ents(exclM &A) |
||||||||||||||||||||
Investments in property, plant and equipment |
-915 | -1,090 | -963 | -1,327 | -1,113 | |||||||||||||||
Sales of property, plant and equipment |
24 | 104 | 55 | 69 | 26 | |||||||||||||||
Product development |
-204 | -177 | -167 | -211 | -262 | |||||||||||||||
Other investing activities |
-5 | 668 | 301 | -126 | -42 | |||||||||||||||
Repayment of lease liabilities |
-548 | -636 | -567 | -618 | -596 | |||||||||||||||
Free cash flow beforeM &A |
1,557 | 12,772 | 3,938 | 3,236 | 2,315 | |||||||||||||||
Acquisitions/ divestments of subs and other operations, net |
5 | -9,256 | -89 | -45 | -208 | |||||||||||||||
Free cash flow afterM &A |
1,562 | 3,516 | 3,849 | 3,191 | 2,107 |
2021 | 2020 | |||||||||||||||||||
Year date,SEK million |
Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||
Cash flow from operating activities |
3,205 | 28,933 | 15,030 | 9,751 | 4,302 | |||||||||||||||
Netcapitalexpendituresand otherinvestm ents(exclM &A) |
||||||||||||||||||||
Investments in property, plant and equipment |
-915 | -4,493 | -3,403 | -2,440 | -1,113 | |||||||||||||||
Sales of property, plant and equipment |
24 | 254 | 150 | 95 | 26 | |||||||||||||||
Product development |
-204 | -817 | -640 | -473 | -262 | |||||||||||||||
Other investing activities |
-5 | 801 | 133 | -168 | -42 | |||||||||||||||
Repayment of lease liabilities |
-548 | -2,417 | -1,781 | -1,214 | -596 | |||||||||||||||
Free cash flow beforeM &A |
1,557 | 22,261 | 9,489 | 5,551 | 2,315 | |||||||||||||||
Acquisitions/ divestments of subs and other operations, net |
5 | -9,598 | -342 | -253 | -208 | |||||||||||||||
Free cash flow afterM &A |
1,562 | 12,663 | 9,147 | 5,298 | 2,107 |
38 Ericsson | First Quarter Report 2021 | Alternative performance measures |
Sales growth by segment adjusted for comparable units and currency
2021 | 2020 | |||||||||||||||||||
Isolated quarter, year overy earchange, percent |
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
Networks |
15 | % | 20 | % | 13 | % | 4 | % | 0 | % | ||||||||||
DigitalServices |
3 | % | 3 | % | -5 | % | -5 | % | -9 | % | ||||||||||
Managed Services |
-8 | % | -12 | % | -9 | % | -12 | % | -5 | % | ||||||||||
Emerging Business and Other¹) |
9 | % | -4 | % | 2 | % | -6 | % | -8 | % | ||||||||||
Total¹) |
10 | % | 13 | % | 7 | % | 0 | % | -2 | % |
2021 | 2020 | |||||||||||||||||||
Year to date, year overy earchange, percent |
Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||
Networks |
15 | % | 10 | % | 6 | % | 2 | % | 0 | % | ||||||||||
Digital Services |
3 | % | -3 | % | -6 | % | -7 | % | -9 | % | ||||||||||
Managed Services |
-8 | % | -10 | % | -9 | % | -9 | % | -5 | % | ||||||||||
Emerging Business and Other¹â¾ |
9 | % | -4 | % | -4 | % | -7 | % | -8 | % | ||||||||||
Total¹) |
10 | % | 5 | % | 2 | % | -1 | % | -2 | % |
1) | Adjusted for Cradlepoint acquisition in November 2020. |
Sales growth by market area adjusted for comparable units and currency
2021 | 2020 | |||||||||||||||||||
Isolated quarter, year overy earchange, percent |
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
South East Asia,Oceania and India |
21 | % | 13 | % | 11 | % | -3 | % | -6 | % | ||||||||||
North East Asia |
78 | % | 38 | % | 49 | % | 19 | % | -1 | % | ||||||||||
North America |
10 | % | 21 | % | 6 | % | 1 | % | 5 | % | ||||||||||
Europe and Latin America |
12 | % | 4 | % | -1 | % | -6 | % | -8 | % | ||||||||||
Middle East and Africa |
-16 | % | -17 | % | -3 | % | -5 | % | 4 | % | ||||||||||
Total |
10 | % | 13 | % | 7 | % | 0 | % | -2 | % |
2021 | 2020 | |||||||||||||||||||
Year to date, year overy earchange, percent |
Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||
South EastAsia,Oceania and India |
21 | % | 5 | % | 1 | % | -4 | % | -6 | % | ||||||||||
North EastAsia |
78 | % | 30 | % | 26 | % | 12 | % | -1 | % | ||||||||||
North Am erica |
10 | % | 8 | % | 4 | % | 3 | % | 5 | % | ||||||||||
Europe and Latin America |
12 | % | -2 | % | -5 | % | -7 | % | -8 | % | ||||||||||
MiddleEastand Africa |
-16 | % | -6 | % | -1 | % | -1 | % | 4 | % | ||||||||||
Total |
10 | % | 5 | % | 2 | % | -1 | % | -2 | % |
39 Ericsson | First Quarter Report 2021 | Alternative performance measures |
Gross margin by segment by quarter
2021 | 2020 | |||||||||||||||||||
Isolated quarters, as percentage of net sales |
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
Networks |
46.1 | % | 43.4 | % | 46.5 | % | 40.2 | % | 44.4 | % | ||||||||||
DigitalServices |
43.5 | % | 40.9 | % | 43.4 | % | 43.6 | % | 39.9 | % | ||||||||||
Managed Services |
19.4 | % | 17.7 | % | 19.9 | % | 17.1 | % | 16.3 | % | ||||||||||
Emerging Business and Other |
36.6 | % | 35.3 | % | 32.0 | % | 12.6 | % | 21.7 | % | ||||||||||
Total |
42.8 | % | 40.6 | % | 43.1 | % | 37.6 | % | 39.8 | % |
2021 | 2020 | |||||||||||||||||||
Year to date, as percentage of net sales |
Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||
Networks |
46.1 | % | 43.6 | % | 43.7 | % | 42.2 | % | 44.4 | % | ||||||||||
Digital Services |
43.5 | % | 41.9 | % | 42.4 | % | 41.9 | % | 39.9 | % | ||||||||||
Managed Services |
19.4 | % | 17.8 | % | 17.8 | % | 16.7 | % | 16.3 | % | ||||||||||
Emerging Business and Other |
36.6 | % | 25.6 | % | 22.1 | % | 17.1 | % | 21.7 | % | ||||||||||
Total |
42.8 | % | 40.3 | % | 40.2 | % | 38.6 | % | 39.8 | % |
EBIT margin by segment by quarter
2021 | 2020 | |||||||||||||||||||
Isolated quarters, as percentage of net sales |
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
Networks |
20.0 | % | 21.5 | % | 22.0 | % | 13.2 | % | 16.6 | % | ||||||||||
Digital Services |
-22.0 | % | 3.9 | % | -6.8 | % | -8.1 | % | -19.3 | % | ||||||||||
Managed Services |
6.4 | % | 6.9 | % | 8.9 | % | 4.7 | % | 7.1 | % | ||||||||||
Emerging Business and Other |
-44.4 | % | -28.5 | % | -26.7 | % | -60.5 | % | -32.7 | % | ||||||||||
Total |
10.6 | % | 15.8 | % | 15.0 | % | 6.9 | % | 8.7 | % |
2021 | 2020 | |||||||||||||||||||
Year to date, as percentage of net sales |
Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||
Networks |
20.0 | % | 18.6 | % | 17.4 | % | 14.8 | % | 16.6 | % | ||||||||||
Digital Services |
-22.0 | % | -5.9 | % | -11.0 | % | -13.3 | % | -19.3 | % | ||||||||||
Managed Services |
6.4 | % | 6.9 | % | 6.9 | % | 5.9 | % | 7.1 | % | ||||||||||
Emerging Business and Other |
-44.4 | % | -37.0 | % | -40.1 | % | -46.8 | % | -32.7 | % | ||||||||||
Total |
10.6 | % | 12.0 | % | 10.3 | % | 7.7 | % | 8.7 | % |
40 Ericsson | First Quarter Report 2021 | Alternative performance measures |
Restructuring charges by function
2021 | 2020 | |||||||||||||||||||
Isolated quarters, SEK million |
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
Cost of sales |
-62 | -5 | -73 | -312 | -335 | |||||||||||||||
Research and developm entexpenses |
0 | 21 | -244 | -227 | 39 | |||||||||||||||
Selling and administrative expenses |
-15 | -8 | -13 | -144 | -5 | |||||||||||||||
Total |
-77 | 8 | -330 | -683 | -301 |
2021 | 2020 | |||||||||||||||||||
Year to date, SEK million |
Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||
Cost of sales |
-62 | -725 | -720 | -647 | -335 | |||||||||||||||
Research and developm entexpenses |
0 | -411 | -432 | -188 | 39 | |||||||||||||||
Selling and administrative expenses |
-15 | -170 | -162 | -149 | -5 | |||||||||||||||
Total |
-77 | -1,306 | -1,314 | -984 | -301 |
Restructuring charges by segment
2021 |
|
2020 | ||||||||||||||||||
Isolated quarters, SEK million |
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
Networks |
24 | -19 | -272 | -380 | -75 | |||||||||||||||
of which cost of sales |
24 | -20 | -79 | -110 | -72 | |||||||||||||||
of which operating expenses |
0 | 1 | -193 | -270 | -3 | |||||||||||||||
Digital Services |
-8 | 14 | -87 | 34 | 20 | |||||||||||||||
of which cost of sales |
-3 | -10 | -8 | 3 | -16 | |||||||||||||||
of which operating expenses |
-5 | 24 | -79 | 31 | 36 | |||||||||||||||
Managed Services |
-79 | 0 | -11 | -2 | -245 | |||||||||||||||
of which cost of sales |
-79 | 0 | -11 | -2 | -245 | |||||||||||||||
of which operating expenses |
0 | 0 | 0 | 0 | 0 | |||||||||||||||
Emerging Business and Other |
-14 | 13 | 40 | -335 | -1 | |||||||||||||||
of which cost of sales |
-4 | 25 | 25 | -203 | -2 | |||||||||||||||
of which operating expenses |
-10 | -12 | 15 | -132 | 1 | |||||||||||||||
Total |
-77 | 8 | -330 | -683 | -301 |
2021 | 2020 | |||||||||||||||||||
Year to date, SEK million |
Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||
Networks |
24 | -746 | -727 | -455 | -75 | |||||||||||||||
of which cost of sales |
24 | -281 | -261 | -182 | -72 | |||||||||||||||
of which operating expenses |
0 | -465 | -466 | -273 | -3 | |||||||||||||||
Digital Services |
-8 | -19 | -33 | 54 | 20 | |||||||||||||||
of which cost of sales |
-3 | -31 | -21 | -13 | -16 | |||||||||||||||
of which operating expenses |
-5 | 12 | -12 | 67 | 36 | |||||||||||||||
Managed Services |
-79 | -258 | -258 | -247 | -245 | |||||||||||||||
of which cost of sales |
-79 | -258 | -258 | -247 | -245 | |||||||||||||||
of which operating expenses |
0 | 0000 | ||||||||||||||||||
Emerging Busines sand Other |
-14 | -283 | -296 | -336 | -1 | |||||||||||||||
of which cost of sales |
-4 | -155 | -180 | -205 | -2 | |||||||||||||||
of which operating expenses |
-10 | -128 | -116 | -131 | 1 | |||||||||||||||
Total |
-77 | -1,306 | -1,314 | -984 | -301 |
41 Ericsson | First Quarter Report 2021 | Alternative performance measures |
Gross income and gross margin excluding restructuring charges by segment
2021 | 2020 | |||||||||||||||||||
Isolated quarters, SEK million |
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
Networks |
16,690 | 21,450 | 19,454 | 16,132 | 15,658 | |||||||||||||||
Digital Services |
3,005 | 5,193 | 3,795 | 3,735 | 2,945 | |||||||||||||||
Managed Services |
1,021 | 1,031 | 1,104 | 957 | 1,178 | |||||||||||||||
Emerging Business and Other |
641 | 588 | 482 | 405 | 342 | |||||||||||||||
Total |
21,357 | 28,262 | 24,835 | 21,229 | 20,123 |
2021 | 2020 | |||||||||||||||||||
Isolated quarters, as percentage of net sales |
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
Networks |
46.0 | % | 43.5 | % | 46.7 | % | 40.5 | % | 44.6 | % | ||||||||||
Digital Services |
43.6 | % | 41.0 | % | 43.5 | % | 43.6 | % | 40.1 | % | ||||||||||
Managed Services |
21.0 | % | 17.7 | % | 20.1 | % | 17.2 | % | 20.6 | % | ||||||||||
Emerging Business and Other |
36.8 | % | 33.8 | % | 30.5 | % | 25.3 | % | 21.9 | % | ||||||||||
Total |
42.9 | % | 40.6 | % | 43.2 | % | 38.2 | % | 40.4 | % |
2021 | 2020 | |||||||||||||||||||
Year to date, SEK million |
Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||
Networks |
16,690 | 72,694 | 51,244 | 31,790 | 15,658 | |||||||||||||||
Digital Services |
3,005 | 15,668 | 10,475 | 6,680 | 2,945 | |||||||||||||||
Managed Services |
1,021 | 4,270 | 3,239 | 2,135 | 1,178 | |||||||||||||||
Emerging Business and Other |
641 | 1,817 | 1,229 | 747 | 342 | |||||||||||||||
Total |
21,357 | 94,449 | 66,187 | 41,352 | 20,123 |
2021 | 2020 | |||||||||||||||||||
Year to date,aspercentage ofnetsales |
Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||
Networks |
46.0 | % | 43.8 | % | 43.9 | % | 42.4 | % | 44.6 | % | ||||||||||
DigitalServices |
43.6 | % | 42.0 | % | 42.5 | % | 42.0 | % | 40.1 | % | ||||||||||
Managed Services |
21.0 | % | 18.9 | % | 19.3 | % | 18.9 | % | 20.6 | % | ||||||||||
Emerging Business and Other |
36.8 | % | 28.0 | % | 25.9 | % | 23.6 | % | 21.9 | % | ||||||||||
Total |
42.9 | % | 40.6 | % | 40.7 | % | 39.3 | % | 40.4 | % |
42 Ericsson | First Quarter Report 2021 | Alternative performance measures |
EBIT and EBIT margin excluding restructuring charges by segment
2021 | 2020 | |||||||||||||||||||
Isolated quarters, SEK million |
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
Networks |
7,217 | 10,623 | 9,437 | 5,635 | 5,902 | |||||||||||||||
Digital Services |
-1,510 | 485 | -504 | -731 | -1,437 | |||||||||||||||
Managed Services |
392 | 401 | 502 | 265 | 653 | |||||||||||||||
Emerging Business and Other |
-761 | -509 | -462 | -635 | -511 | |||||||||||||||
Total |
5,338 | 11,000 | 8,973 | 4,534 | 4,607 |
2021 | 2020 | |||||||||||||||||||
Isolated quarters, as percentage of net sales |
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
Networks |
19.9 | % | 21.5 | % | 22.7 | % | 14.1 | % | 16.8 | % | ||||||||||
Digital Services |
-21.9 | % | 3.8 | % | -5.8 | % | -8.5 | % | -19.6 | % | ||||||||||
Managed Services |
8.1 | % | 6.9 | % | 9.1 | % | 4.8 | % | 11.4 | % | ||||||||||
Emerging Business and Other |
-43.7 | % | -29.3 | % | -29.2 | % | -39.6 | % | -32.7 | % | ||||||||||
Total |
10.7 | % | 15.8 | % | 15.6 | % | 8.2 | % | 9.3 | % |
2021 | 2020 | |||||||||||||||||||
Year to date, SEK million |
Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||
Networks |
7,217 | 31,597 | 20,974 | 11,537 | 5,902 | |||||||||||||||
Digital Services |
-1,510 | -2,187 | -2,672 | -2,168 | -1,437 | |||||||||||||||
Managed Services |
392 | 1,821 | 1,420 | 918 | 653 | |||||||||||||||
Em erging Businessand Other |
-761 | -2,117 | -1,608 | -1,146 | -511 | |||||||||||||||
Total |
5,338 | 29,114 | 18,114 | 9,141 | 4,607 |
2021 | 2020 | |||||||||||||||||||
Year to date, as percentage of net sales |
Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||
Networks |
19.9 | % | 19.0 | % | 18.0 | % | 15.4 | % | 16.8 | % | ||||||||||
Digital Services |
-21.9 | % | -5.9 | % | -10.8 | % | -13.6 | % | -19.6 | % | ||||||||||
Managed Services |
8.1 | % | 8.1 | % | 8.5 | % | 8.1 | % | 11.4 | % | ||||||||||
Emerging Business and Other |
-43.7 | % | -32.6 | % | -33.9 | % | -36.2 | % | -32.7 | % | ||||||||||
Total |
10.7 | % | 12.5 | % | 11.1 | % | 8.7 | % | 9.3 | % |
Rolling four quarters of net sales by segment
2021 | 2020 | |||||||||||||||||||
Rolling fourquarters, SEK million |
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
Networks |
167,126 | 165,978 | 161,060 | 158,662 | 156,654 | |||||||||||||||
Digital Services |
36,877 | 37,324 | 37,821 | 38,969 | 39,385 | |||||||||||||||
Managed Services |
21,751 | 22,600 | 23,812 | 24,673 | 25,423 | |||||||||||||||
Emerging Business and Other |
6,664 | 6,488 | 6,480 | 6,524 | 6,598 | |||||||||||||||
Total |
232,418 | 232,390 | 229,173 | 228,828 | 228,060 |
Rolling four quarters of EBIT margin excluding restructuring charges by segment (%)
2021 | 2020 | |||||||||||||||||||
Rolling fourquarters, SEK million |
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
Netw orks |
19.7 | % | 19.0 | % | 17.0 | % | 15.9 | % | 16.1 | % | ||||||||||
DigitalServices |
-6.1 | % | -5.9 | % | -7.0 | % | -6.8 | % | -8.2 | % | ||||||||||
Managed Services |
7.2 | % | 8.1 | % | 7.4 | % | 7.4 | % | 6.9 | % | ||||||||||
Emerging Businessand Other |
-35.5 | % | -32.6 | % | -30.5 | % | -196.5 | % | -195.5 | % | ||||||||||
Total |
12.8 | % | 12.5 | % | 10.7 | % | 5.0 | % | 4.8 | % |
43 Ericsson | First Quarter Report 2021 | Alternative performance measures |
EBITA and EBITA margin by segment by quarter
2021 | 2020 | |||||||||||||||||||
Isolated quarters, SEK million |
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
Networks |
7,274 | 10,636 | 9,347 | 5,321 | 5,957 | |||||||||||||||
DigitalServices |
-1,400 | 625 | -461 | -563 | -1,283 | |||||||||||||||
Managed Services |
314 | 403 | 492 | 264 | 409 | |||||||||||||||
Emerging Business and Other |
-644 | -380 | -370 | -913 | -456 | |||||||||||||||
Total |
5,544 | 11,284 | 9,008 | 4,109 | 4,627 |
2021 | 2020 | |||||||||||||||||||
Isolated quarters, as percentage of net sales |
Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||
Networks |
20.1 | % | 21.5 | % | 22.4 | % | 13.4 | % | 17.0 | % | ||||||||||
Digital Services |
-20.3 | % | 4.9 | % | -5.3 | % | -6.6 | % | -17.5 | % | ||||||||||
Managed Services |
6.5 | % | 6.9 | % | 8.9 | % | 4.7 | % | 7.2 | % | ||||||||||
Emerging Business and Other |
-37.0 | % | -21.9 | % | -23.4 | % | -57.0 | % | -29.1 | % | ||||||||||
Total |
11.1 | % | 16.2 | % | 15.7 | % | 7.4 | % | 9.3 | % |
2021 | 2020 | |||||||||||||||||||
Year to date, SEK million |
Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||
Netw orks |
7,274 | 31,261 | 20,625 | 11,278 | 5,957 | |||||||||||||||
Digital Services |
-1,400 | -1,682 | -2,307 | -1,846 | -1,283 | |||||||||||||||
Managed Services |
314 | 1,568 | 1,165 | 673 | 409 | |||||||||||||||
Emerging Business and Other |
-644 | -2,119 | -1,739 | -1,369 | -456 | |||||||||||||||
Total |
5,544 | 29,028 | 17,744 | 8,736 | 4,627 |
2021 | 2020 | |||||||||||||||||||
Yearto date, as percentage of net sales |
Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||
Networks |
20.1 | % | 18.8 | % | 17.7 | % | 15.0 | % | 17.0 | % | ||||||||||
Digital Services |
-20.3 | % | -4.5 | % | -9.4 | % | -11.6 | % | -17.5 | % | ||||||||||
Managed Services |
6.5 | % | 6.9 | % | 6.9 | % | 6.0 | % | 7.2 | % | ||||||||||
Emerging Businessand Other |
-37.0 | % | -32.7 | % | -36.6 | % | -43.2 | % | -29.1 | % | ||||||||||
Total |
11.1 | % | 12.5 | % | 10.9 | % | 8.3 | % | 9.3 | % |
Q1 | Jan-Dec | |||||||||||
2021 | 2020 | 2020 | ||||||||||
Days sale soutstanding |
95 | 94 | 69 | |||||||||
Inventory turn over days |
93 | 97 | 78 | |||||||||
Payable days |
98 | 92 | 82 |
44 Ericsson | First Quarter Report 2021 | Alternative performance measures |