- Update on short term strategy execution and actions to continue to drive profitable growth and increase margins
- High-level, long-term strategy beyond 2015 outlined with focus on extending today's market leading position by investments in targeted growth areas
- Outlook on market growth for 2012-2016 in key market segments
Today at Ericsson's (NASDAQ:ERIC) annual Investor Day, President and CEO Hans Vestberg will give an update on the company's strategy execution and, for the first time, give an overview of Ericsson's longer term strategy, beyond 2015.
Vestberg will describe key priorities for 2014 for achieving profitable growth combined with continued focus on cost and efficiency, and strengthened commercial excellence. Key ingredients in this plan include monetizing the investments in footprint that the company has established in Europe, continued structural improvements to shorten order-to-cash cycle time, and to evolve the infrastructure software model to fit an ICT environment.
Vestberg said: "Looking at sales growth in a longer perspective, it is encouraging to see that we grew twice as fast as the market in 2010-2012, currency adjusted. This is proof that our strategy is effective and that we are delivering real value to our customers."
Looking beyond 2015, Ericsson will leverage its core assets: the combined strength of its technology and services leadership and its global scale, which enables investment decisions in targeted areas for growth, such as IP, OSS, BSS, TV & Media, and Modems.
"Our market leading position gives us a unique opportunity to work with the most successful customers around the world. Our leading position in North America, currently the most advanced ICT market in the world, gives us a head start in understanding the changing industry landscape. As our customers' businesses transform, our job is to make sure that we continue to turn our global experience and leading technology into attractive and relevant solutions, driving greater profits for them," stated Vestberg.
In addition to Vestberg, Ericsson's CFO and Executive Vice President Jan Frykhammar will discuss financial metrics, as well as elaborate how sales came under some pressure in the third quarter, and reiterate that this is mainly due to FX headwind combined with lower activity in three large projects in North America and Japan. In light of the current FX headwind Ericsson is experiencing, Jan Frykhammar will put special focus on describing the company's FX strategy.
"With strong cash flow, we will be able to invest in profitable growth, maintain a stable dividend and ensure a strong cash position to attract new business," said Frykhammar.
Ericsson will also present a market outlook for 2012-2016. Steady growth is expected across all areas with no major changes in figures for the main compound annual growth rates (CAGR), compared with last year. Ericsson estimates that the total network equipment market will show a CAGR of 3-5%; telecom services is estimated to show a CAGR of 5-7%; and the market for support solutions is forecasted to show a CAGR of 9-11%.
Alongside Vestberg and Frykhammar, executive leadership team members Johan Wibergh, Head of Business Unit Networks, Magnus Mandersson, Head of Business Unit Global Services, Per Borgklint, Head of Business Unit Support Solutions, Ulf Ewaldsson, Chief Technology Officer, and Douglas Gilstrap, Head of Group Function Strategy, will present at today's event, which takes place in Stockholm.
NOTES TO EDITORS
Presentation material and access to a live webcast of the event are available from our website: www.ericsson.com/thecompany/investors.
An on-demand version of the webcast will also be available here, shortly after the event.
Download high-resolution photos and broadcast-quality video at www.ericsson.com/press
Ericsson is a world-leading provider of communications technology and services. We are enabling the Networked Society with efficient real-time solutions that allow us all to study, work and live our lives more freely, in sustainable societies around the world.
Our offering comprises services, software and infrastructure within Information and Communications Technology for telecom operators and other industries. Today 40 percent of the world's mobile traffic goes through Ericsson networks and we support customers' networks servicing more than 2.5 billion subscriptions.
We are more than 110,000 people working with customers in more than 180 countries. Founded in 1876, Ericsson is headquartered in Stockholm, Sweden. In 2012 the company's net sales were SEK 227.8 billion (USD 33.8 billion). Ericsson is listed on NASDAQ OMX, Stockholm and NASDAQ, New York stock exchanges.
FOR FURTHER INFORMATION, PLEASE CONTACT
Ericsson Corporate Communications
Phone: +46 10 719 69 92
Ericsson Investor Relations
Phone: +46 10 719 00 00
Ericsson discloses the information provided herein pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for publication on November 6, 2013 at 08:00 CET.