STOCKHOLM, SWEDEN — (Marketwire) — 01/31/13 —

Fourth quarter highlights

* Sales increased 5% YoY and 23% QoQ. Segment Networks sales increased 6%
YoY driven mainly by North America. QoQ Networks sales grew 31%, primarily
due to normal higher year-end business activity

* Operating margin excl. JVs improved to 7.1% (6.4%) YoY mainly driven by
increased Networks sales, offset by continued efficiency measures
generating restructuring charges with a negative impact on operating margin
of close to -3%-points (-1%)

* Net income SEK -6.3 (1.5) b. negatively impacted by a non-cash charge
related to ST-Ericsson of SEK -8.0 b. as previously communicated and a
reduction of deferred tax assets of SEK -0.5 b. related to lowered
corporate tax rate in Sweden

* EPS diluted SEK -1.99 (0.36). EPS Non-IFRS and excluding ST-Ericsson
charge SEK 1.07 (0.81)

* Cash flow from operations increased to SEK 15.7 b. driven by reduced
working capital.

Full year highlights

* Sales were flat YoY with growth in Global Services and Support Solutions,
while Networks sales declined partly due to the 40% decline of CDMA
equipment sales

* Operating margin, excluding JVs, was flat at 9.7% (9.6%). Excluding the
gain related to the divestment of Sony Ericsson operating margin was 6.4%

* Net income SEK 5.9 (12.6) b. impacted positively by the Sony Ericsson
gain of SEK 7.7 b. and negatively by the ST-Ericsson charge of SEK -8.0 b.

* EPS diluted SEK 1.78 (3.77). EPS Non-IFRS SEK 3.55 (5.54)

* Cash flow from operations SEK 22.0 b. Full year cash conversion of 116%,
above the target >70%

* Dividend for 2012, proposed by board of Directors of SEK 2.75 (2.50) per
share.

Comments from Hans Vestberg, President and CEO

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

“During the year profitability was negatively impacted by operating losses
in
ST-Ericsson, the ongoing network modernization projects in Europe as well
as the
underlying business mix, with a higher share of coverage projects than
capacity
projects. With present visibility of customer demand, and with the current
global economic development, underlying business mix is expected to
gradually
shift towards more capacity projects during the second half of 2013.

We ended the year with strong cash flow and a full-year cash conversion
well
above target. The Board of Directors proposes a dividend for 2012 of SEK
2.75
(2.50) per share, an increase by 10%.

Throughout 2012 North America was our strongest market, driven by continued
mobile broadband investments and demand for services. However, regions such
as
South East Asia and Oceania and Sub-Saharan Africa gradually improved
during the
year.

In the fourth quarter Networks sales recovered, despite continued expected
decline in CDMA. Profitability in Networks improved sequentially due to
higher
sales and a higher share of software sales. Sales and profitability for
Global
Services and Support Solutions remained stable.

The quarter was negatively impacted by a non-cash charge
related to ST-Ericsson. Following the announcement of STMicroelectronics-
intention to exit as a
shareholder, Ericsson will explore various strategic
options for ST-Ericsson assets. We believe that the modem technology, which
we originally contributed to
the JV, has a strategic value to the wireless industry.

The work to leverage our strength in the growth areas mobile broadband,
managed
services and operations and business support systems (OSS/BSS) has
continued
during the year, with both selective acquisitions and divestments. In
addition,
we completed the divestment of Sony Ericsson and introduced a new strategy
for
Support Solutions. Improving profitability, reducing costs and working
capital
remain high on the agenda also for 2013. While the macroeconomic and
political
uncertainty continues in certain regions the long-term fundamentals in the
industry remain attractive and we are well positioned to continue to
support our
customers in a transforming ICT market,” concludes Vestberg.

You find the complete report with tables in the attached PDF or by
following
this link:

Editor-s note

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

Ericsson invites media, investors and analysts to a press conference at the
Ericsson Studio, Grönlandsgången 4, Stockholm, at 09.00 (CET),
January
31, 2013. An analysts, investors and media conference call will begin at
14.00
(CET).

Live webcast of the press conference and conference call as well as
supporting
slides will be available at and

Video material will be published during the day on

Ericsson discloses the information provided herein pursuant to the
Securities
Markets Act. The information was submitted for publication at 07.30 CET, on
January 31, 2013.

Ericsson fourth quarter and full year 2012:

This announcement is distributed by Thomson Reuters on behalf of
Thomson 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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