STOCKHOLM, SWEDEN--(Marketwire - May 3, 2012) -
* At Annual General Meeting of shareholders, Ericsson President and CEO
Vestberg gave an overview of 2011 financial results and strategic
* Good sales growth; profitability remains in focus
* Information and Communications Technology (ICT) reaching all parts of
society - from electric vehicles to city planning
At Ericsson's (NASDAQ: ERIC) Annual General Meeting, President and CEO Hans
Vestberg reviewed financial results and discussed strategic decisions made
throughout 2011, which he told shareholders will ensure continued
services leadership for the company.
As previously reported in the Annual Report, published on March 15, income
increased by 12% and sales, excluding acquisitions and divestments,
19% adjusted for currencies. Net sales were SEK 227 billion for 2011.
same period, Ericsson increased its market share for mobile network
6% to 38%. Ericsson holds the number one position as a global telecom
vendor and is twice as large as its nearest competitor.
Vestberg gave an overview of Ericsson's focus areas: mobile broadband,
services, and OSS/BSS (Operations Support Systems and Business Support
Business Unit Support Solutions, formerly Multimedia, has defined a new
in 2012 that builds on OSS/BSS, TV and media solutions as well as
2011 was a tough year for Ericsson's joint ventures, which both reported
Vestberg remarked on the divestment of Sony Ericsson as emotional, because
Ericsson has been involved in making telephones practically since the
inception in 1876, but said it made good business sense in the strategy to
enable 50 billion connected devices - not just phones.
With regard to ST-Ericsson, Vestberg told shareholders that the company has
presented a new business strategy and announced steps to return to
By the end of 2011, there were 6 billion mobile subscriptions in the world.
There are about 7 billion people on Earth. Even more importantly,
for mobile broadband, or internet via mobile devices, increased by 60%
the year. By 2016, Ericsson predicts that mobile broadband subscriptions
up to five billion. There are many examples of how the world is headed into
Networked Society, where people, business, and society use connected
their benefit. Vestberg presented two examples at the Annual General
Staffan Lorentz from the City of Stockholm, talked about Stockholm Royal
Seaport, where Ericsson is one of many partners in a project to build a
sustainable city of the future. Ten-thousand people will live and
30-thousand people are expected to work in the area, which is designed to
make it easy for
people to live in a low-carbon, ecologically-conscious way. Ericsson is an
advisor and is building a network that is used for much more than voice
The other example mentioned by Vestberg was an electric car charging
done in collaboration with Victoria Institute, Göteborg Energi, and
Corporation, where drivers can control the charging of a Volvo C30 Electric
via a mobile app. An actual car was parked outside the meeting area for
shareholders to see and touch.
Ericsson invested close to SEK 33 billion in 2011 in Research and
and employs about 22,000 engineers in R&D. The company is the largest
essential patents for wireless communication, with over 90 license
and 30,000 patents.
During the Annual General Meeting, three employees were brought onstage and
recognized as "Inventors of the Year." Thomas Cheng, from Ericsson Research
San Jose, California, USA, Paul Schliwa-Bertling, from Ericsson in
Sweden, and Iana Siomina, from Ericsson Research in Kista, Sweden, are
altogether responsible for 275 patent applications.
Sustainability and Corporate Responsibility Report 2011
Ericsson today publishes its Sustainability and Corporate Responsibility
for 2011, Technology for Good. The report gives examples of Ericsson's
performance and activities in areas such as energy efficiency, in helping
reduce climate change, as well as its involvement in endeavors like
United, which works to help refugees find their loved ones, and Connect to
Learn, where Ericsson provides ICT to enable a 21(st) century education for
secondary school students, especially girls, in Africa.
The report also highlights Ericsson's longtime commitment to human rights.
Onstage, Hans Vestberg said: "It is our firm conviction that access to
telecommunication is crucial to ensure human rights - the right to
health care, not to mention freedom of expression and democracy."
He summed up by saying: "We have strengthened our position as the industry
leader and I'm convinced that Ericsson has what it takes to be the driving
in the Networked Society. Our best assets are our leadership within
and services, our global scale, and of course the fantastic colleagues that
have around the world."
NOTES TO EDITORS
Sustainability and Corporate Responsibility Report
Electric Car Charging Project- Media Kit
Our multimedia content is available at the broadcast room:
Ericsson is the world's leading provider of communications technology and
services. We are enabling the Networked Society with efficient
solutions that allow us all to study, work and live our lives more freely,
sustainable societies around the world.
Our offering comprises services, software and infrastructure within
and Communications Technology for telecom operators and other industries.
more than 40 percent of the world's mobile traffic goes through Ericsson
networks and we support customers' networks servicing more than 2 billion
We operate in 180 countries and employ more than 100,000 people. Founded in
1876, Ericsson is headquartered in Stockholm, Sweden. In 2011 the company
revenues of SEK 226,9 billion (USD 35.0 billion). Ericsson is listed on
OMX, Stockholm and NASDAQ, New York stock exchanges.
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Source: Ericsson via Thomson Reuters ONE