HispanicBusiness

Comments from Hans Vestberg, President and CEO

"Our segments showed mixed developments during the year with strong growthinGlobal Services and Support Solutions, while Networks had a morechallengingyear. Support Solutions went from losses in 2011 into profitability andtogetherwith Global Services represented close to 50% of Group sales in 2012,comparedto 42% in 2011," says Hans Vestberg, President and CEO of Ericsson(NASDAQ: ERIC).

"During the year profitability was negatively impacted by operating lossesinST-Ericsson, the ongoing network modernization projects in Europe as wellas theunderlying business mix, with a higher share of coverage projects thancapacityprojects. With present visibility of customer demand, and with the currentglobal economic development, underlying business mix is expected tograduallyshift towards more capacity projects during the second half of 2013.

We ended the year with strong cash flow and a full-year cash conversionwellabove target. The Board of Directors proposes a dividend for 2012 of SEK2.75(2.50) per share, an increase by 10%.

Throughout 2012 North America was our strongest market, driven by continuedmobile broadband investments and demand for services. However, regions suchasSouth East Asia and Oceania and Sub-Saharan Africa gradually improvedduring theyear.

In the fourth quarter Networks sales recovered, despite continued expecteddecline in CDMA. Profitability in Networks improved sequentially due tohighersales and a higher share of software sales. Sales and profitability forGlobalServices and Support Solutions remained stable.

The quarter was negatively impacted by a non-cash chargerelated to ST-Ericsson. Following the announcement of STMicroelectronics'intention to exit as ashareholder, Ericsson will explore various strategicoptions for ST-Ericsson assets. We believe that the modem technology, whichwe originally contributed tothe JV, has a strategic value to the wireless industry.

The work to leverage our strength in the growth areas mobile broadband,managedservices and operations and business support systems (OSS/BSS) hascontinuedduring the year, with both selective acquisitions and divestments. Inaddition,we completed the divestment of Sony Ericsson and introduced a new strategyforSupport Solutions. Improving profitability, reducing costs and workingcapitalremain high on the agenda also for 2013. While the macroeconomic andpoliticaluncertainty continues in certain regions the long-term fundamentals in theindustry remain attractive and we are well positioned to continue tosupport ourcustomers in a transforming ICT market," concludes Vestberg.

You find the complete report with tables in the attached PDF or byfollowingthis link:www.ericsson.com/res/investors/docs/q-reports/2012/12month12-en.pdf

Editor's note

To read the complete report with tables, please go to:

www.ericsson.com/thecompany/investors/financial-reports/interim-reports/Q4-report-2012

Ericsson invites media, investors and analysts to a press conference at theEricsson Studio, Grönlandsgången 4, Stockholm, at 09.00 (CET),January31, 2013. An analysts, investors and media conference call will begin at14.00(CET).

Live webcast of the press conference and conference call as well assupportingslides will be available at www.ericsson.com/press andwww.ericsson.com/investors

Video material will be published during the day onwww.ericsson.com/broadcast_room

Ericsson discloses the information provided herein pursuant to theSecuritiesMarkets Act. The information was submitted for publication at 07.30 CET, onJanuary 31, 2013.

Ericsson fourth quarter and full year 2012:

http://hugin.info/1061/R/1674425/545208.pdf

This announcement is distributed by Thomson Reuters on behalf ofThomson Reuters clients. The owner of this announcement warrants that:

(i) the releases contained herein are protected by copyright and other applicable laws; and

(ii) they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: Ericsson via Thomson Reuters ONE

[HUG#1674425]



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