September 22, 2016

In 2014 the Company communicated a cost and efficiency program aimed at securing annual cost savings of 9 billion SEK during 2017. This program is progressing according to plan, but is not yet finished.

On July 19, 2016, the Company announced further actions to reduce costs. This means a doubling of the previously announced savings of operating expenses of 4.5 billion SEK (i.e. not a doubling of the entire savings and efficiency program), in order to reach a reduced run rate of operating expenses (excluding restructuring charges) of 53 billion SEK during the second half of 2017. This can be compared to 63 billion SEK for the full year 2014.

As previously communicated on several occasions, these measures mean a reduction of the number of employees worldwide. We have large operations in Sweden which are not excluded. As we always do for any employee reductions, we will handle this on a country-by-country basis and our employees and, where applicable, union representatives will always be informed first.