«After turning around the company, Ericsson is entering a new phase of growth. The changed group structure that we announce today represents exciting opportunities for our people, our customers and our business and will allow us to continue to grow our core mobile infrastructure business and capitalize on the fast-growing enterprise market. Within 2-3 years, we want to achieve our long-term goal of growing faster than the market and an EBITA margin (excluding restructuring costs) of 15-18% for the Group. I look forward to working together with the new Executive Team, and the whole Ericsson team, as we accelerate our work to execute on our strategy, strengthen our company culture and continue to grow the company with increased profitability», concludes Ekholm. Reporting segments
Following the new group structure, Ericsson will have the following reporting segments:
Segment Networks (unchanged)
Segment Cloud Software and Services (corresponding to former Digital Services and Managed Services)
Segment Enterprise (Enterprise Wireless Solutions and Technologies & New Businesses). On completion of the acquisition, Vonage will form a separate Business Area included in this segment.
Segment Other (including media businesses and one-offs)
The new segment reporting structure will be applied from Q3 2022. Restated financials for new segments for 2020 – 2022 will be published in September 2022 ahead of the Q3 quarterly report.
NOTES TO EDITORS:
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About Ericsson
Ericsson enables communications service providers to capture the full value of connectivity. The company’s portfolio spans Networks, Digital Services, Managed Services, and Emerging Business and is designed to help our customers go digital, increase efficiency and find new revenue streams. Ericsson’s investments in innovation have delivered the benefits of telephony and mobile broadband to billions of people around the world. The Ericsson stock is listed on Nasdaq Stockholm and on Nasdaq New York. www.ericsson.com
Forward-looking statements
This release includes forward-looking statements, including statements reflecting management’s current views relating to the growth of the market, future market conditions, future events, financial condition, and expected operational and financial performance, including, in particular the following:
– Our goals, strategies, planning assumptions and operational or financial performance expectations
– Industry trends, future characteristics and development of the markets in which we operate
– Our future liquidity, capital resources, capital expenditures, cost savings and profitability
– The expected demand for our existing and new products and services as well as plans to launch new products and services including research and development expenditures
– The ability to deliver on future plans and to realize potential for future growth
– The expected operational or financial performance of strategic cooperation activities and joint ventures
– The time until acquired entities and businesses will be integrated and accretive to income
– Technology and industry trends including the regulatory and standardization environment in which we operate, competition and our customer structure.
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Important factors that could affect whether and to what extent any of our forward-looking statements materialize include, but are not limited to, the factors described in the section «Risk Factors» in the latest interim report, and in «Risk Factors» in the Annual Report 2021.
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