Telefonaktiebolaget LM Ericsson (ERIC) 6-K Current report (foreign)

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN ISSUER

Pursuant to Rule 13a-16 or 15d-16 of

the Securities Exchange Act of 1934

April 25, 2012

LM ERICSSON TELEPHONE COMPANY

(Translation of registrant’s name into English)

Torshamnsgatan 23, Kista

SE-164 83, Stockholm, Sweden

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F  x    Form 40-F  ¨

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes  ¨             No  x

Announcement of LM Ericsson Telephone Company, datedApril 25, 2012 regarding “Ericsson First Quarter report”

CONTENTS
Financial Highlights	2
Segment Results	4
Regional Overview	7
Market Data	8
Parent Company Information	9
Other Information	9
Auditors’ Review Report	11
Editor’s Note	12
For Further Information, Please Contact	12
Financial Statements and Additional Information	14

Ericsson FIRST QUARTER report

April 25, 2012

• Sales decreased -4% YoY, impacted by an expected major decline in CDMA sales as well as lower operator network spending in regions with macro-economic or political uncertainty. Global Services and consolidation of Telcordia contributed positively.

• The underlying business mix, with higher share of coverage and network modernization projects than capacity projects, was unchanged. This mix is expected to prevail short-term.

• Operating margin 5.5% excl. gain from Sony Ericsson divestment and loss in ST-Ericsson.

• Net income SEK 8.8 b. up 116% YoY, impacted by gain from Sony Ericsson divestment of SEK 7.7 b and loss in ST-Ericsson.

• EPS diluted SEK 2.76 (1.27), driven by gain from Sony Ericsson divestment. EPS Non-IFRS and excluding Sony Ericsson gain SEK 0.77 (1.61).

SEK b.	Q1 2012			Q1 2011			YoY Change			Q4 2011			QoQ Change
Net sales		51.0			53.0			-4	%		63.7			-20	%
Of which Networks		27.3			33.2			-18	%		33.3			-18	%
Of which Global Services		20.6			17.4			18	%		27.0			-24	%
Of which Support Solutions		3.0			2.3			33	%		3.4			-11	%
Gross margin		33.3	%		38.5	%		—			30.2	%		—
EBITA margin excl JVs and Sony Ericsson sale		7.7	%		14.1	%		—			8.1	%		—
Operating income excl JVs and Sony Ericsson sale		2.8			6.3			-56	%		4.1			-32	%
Operating margin excl JVs and Sony Ericsson sale		5.5	%		11.9	%		—			6.4	%		—
EBITA margin excl JVs		22.8	%		14.1	%		—			8.1	%		—
Operating income excl JVs		10.5			6.3			67	%		4.1			159	%
Operating margin excl JVs		20.6	%		11.9	%		—			6.4	%		—
Of which Networks		6	%		17	%		—			8	%		—
Of which Global Services		6	%		7	%		—			6	%		—
Of which Support Solutions		-1	%		-15	%		—			0	%		—
Operating income incl JVs		9.1			5.8			56	%		2.2			321	%
Income after financial items		9.1			5.8			56	%		1.8			396	%
Net income		8.8			4.1			116	%		1.5			490	%
EPS diluted, SEK		2.76			1.27			117	%		0.36			667	%
EPS (Non-IFRS), SEK1)		3.14			1.61			95	%		0.81			288	%
Cash flow from operations		0.7			-2.9			—			5.5			—
Cash conversion, year to date		17	%		-46	%		—			79	%		—
Net cash, end of period		37.1			48.2			-23	%		39.5			-6	%

¹⁾  EPS, diluted, excl. amortizations, write-downs of acquired intangible assets and restructuring.

Q112 includes a gain from the divestment of Sony Ericsson of SEK 7.7 b.

COMMENTS FROM HANS VESTBERG, PRESIDENT AND CEO

“Sales of high-performance mobile broadband developed well in North America, Japan and Korea, while other regions such as Europe including Russia, parts of Middle East and India were weaker,” says Hans Vestberg, President and CEO of Ericsson (NASDAQ:ERIC). “CDMA continued its expected decline in the transition to LTE. Our services business showed continued momentum where especially Professional Services developed favorably. Support Solutions (former Multimedia) increased organic sales.

1

NET SALES, SEK b.

OPERATING INCOME INCL. JVs, SEK b.

* excl SEK 7.7 b. gain from Sony Ericsson divestment

NET INCOME, SEK b.

* excl SEK 7.7 b. gain from Sony Ericsson divestment

CASH FLOW FROM OPERATIONS, SEK b.

In the quarter, we took important steps in our strategy execution. The announced acquisition of BelAir adds WiFi capabilities to our hetnet portfolio and by acquiring Technicolor’s Broadcast Services Division we have strengthened our position in media and broadcasting services, targeting a leadership position in Europe. With the completed divestment of Sony Ericsson, we have left the consumer part of the handset business in order to focus on enabling connectivity for all devices, handsets and beyond. Last year, we gained market share in our core businesses and continued to build a strong LTE position where we have more than 60% market share.

Late 2010, we took a strategic decision to increase our market share in Europe when operators started to modernize their networks and replacing old infrastructure with new multi-standard radio base stations. This, together with the business mix with more coverage than capacity projects, has, as expected, had a negative impact on gross margin YoY and is expected to prevail short-term.

Our joint venture ST-Ericsson has launched a revised strategy and actions to reduce its break-even point. We remain confident that ST-Ericsson has a strategic position in the industry to enable the device ecosystem,” concludes Vestberg.

Financial Highlights

INCOME STATEMENT AND CASH FLOW

Sales in the quarter were down -4% YoY and -20% QoQ. Sales for comparable units, adjusted for FX and hedging, decreased -6% YoY. Telcordia’s sales were SEK 0.9 b. in the quarter. Revenue from Telcordia is split 50/50 between segments Global Services and Support Solutions. Q111 was positively impacted by a one-off revenue from the sale of patents of SEK 0.3 b.

Networks declined compared to Q111, impacted by continued business trends from H211 as well as a major decrease in CDMA sales. Global Services continued to show good momentum with a growth of 18% YoY, with especially good development in Professional Services. Global Services represented 40% (33%) of total sales in the quarter.

Restructuring charges amounted to SEK 0.6 (0.4) b. As previously communicated, restructuring charges are estimated to approximately SEK 4 b. for the FY12. Activities for increased efficiency are ongoing and expected to be executed evenly during the course of the year.

Gross margin was down YoY to 33.3% (38.5%), and up from 30.2% QoQ. The YoY decrease is due to increased services share, network modernization projects in Europe and a higher proportion of coverage projects. The QoQ improvement is due to seasonality, positive effects from mobile broadband capacity investments and lower Global Services share. The underlying business mix, with a higher share of coverage than capacity projects, including the European network modernization projects, was unchanged and is expected to prevail short-term.

Gradually in 2011, gross margin was negatively impacted by the strategic decision to increase market share in Europe and fully impacted Q411. Average project duration is expected to be 18-24 months.

Ericsson First Quarter Report 2012 2

DAYS SALES OUTSTANDING

INVENTORY DAYS

PAYABLE DAYS

Total operating expenses, including impact from the consolidation of Telcordia, amounted to SEK 14.2 (14.4) b. R&D expenses amounted to SEK 8.0 (8.0) b. and declined QoQ from SEK 8.7 b. Selling and general administrative expenses (SG&A) amounted to SEK 6.2 (6.4) b., representing 12% of sales, same as in Q111. SG&A declined QoQ from SEK 6.8 b.

Other operating income and expenses includes a gain of SEK 7.7 b. related to the divestment of Sony Ericsson.

Operating income, excluding JVs and gain from Sony Ericsson divestment, decreased to SEK 2.8 (6.3) b. due to lower Networks sales and lower gross margin. Operating margin was 5.5% excluding the gain from the divestment of Sony Ericsson and loss in ST-Ericsson.

Ericsson’s share in ST-Ericsson’s income before tax was SEK -1.4 (-0.6) b.

Financial net amounted to SEK 0.0 (0.0) b and increased QoQ from SEK -0.3 b.

Net income improved to SEK 8.8 (4.1) b., due to the gain from divestment of Sony Ericsson.

EPS diluted was SEK 2.76 (1.27). EPS Non-IFRS, excluding the Sony Ericsson gain, was SEK 0.77 (1.61).

Cash flow from operations amounted to SEK 0.7 (-2.9) b., impacted by more projects. Cash conversion was 17% due to project mix and decreases in accounts payable. During the quarter, the Company made an employee contribution to pension trusts of SEK 1.0 b. Cash outlays for restructuring amounted to SEK 0.4 (0.8) b. Cash outlays of SEK 1.2 b. remain to be made.

BALANCE SHEET AND OTHER PERFORMANCE INDICATORS

Trade receivables decreased QoQ to SEK 60.7 (64.5) b. Days sales outstanding (DSO) increased from 91 to 104 days QoQ due to the seasonally lower volumes.

Inventory decreased QoQ by SEK 0.5 b. to SEK 32.5 (33.1) b. Inventory turnover days increased from 78 to 88 days reflecting the higher share of projects. YoY, ITO increased slightly by one day.

Focus remains on improving working capital levels to reach the cash conversion target of 70%.

Goodwill increased SEK 3.8 b. to SEK 31.2 (27.4) b. due to acquisitions.

Cash, cash equivalents and short-term investments amounted to SEK 75.6 (80.5) b. The net cash position decreased QoQ by SEK -2.4 b. to SEK 37.1 (39.5) b. The net effect on cash from divestment of Sony Ericsson, acquisitions of Telcordia and BelAir as well as increased share of LG-Ericsson was SEK -1.7 b.

During the quarter, approximately SEK 1.0 b. of provisions was utilized, of which SEK 0.4 b. related to restructuring. Additions of SEK 1.0 b. were made, of which SEK 0.3 b. related to restructuring. Reversals of SEK 0.4 b. were made.

Total number of employees at the end of the quarter increased to 108,551 (104,525). The total net addition is mainly related to the consolidation of Telcordia and expansion in the global service center in India.

Ericsson First Quarter Report 2012 3

SEGMENT SALES, SEK b.

NETWORKS QUARTERLY SALES, SEK b.

EBITA MARGIN, PERCENT

Segment Results

NETWORKS

SEK b.	Q1 2012			Q1 2011			YoY Change			Q4 2011			QoQ Change
Network sales		27.3			33.2			-18	%		33.3			-18	%
EBITA margin1)		9	%		20	%		—			10	%		—
Operating margin		6	%		17	%		—			8	%		—

¹⁾ EBITA – Earnings before interest, tax, amortizations and write-downs of acquired intangibles.

Organic and FX adjusted sales growth was -18% YoY. In the quarter, business trends from H211 prevailed with cautious operator spending in regions with macro-economic or political uncertainty. QoQ sales were also impacted by seasonality. Sales in CDMA continued to decline and decreased -40% YoY. Demand for HSPA and LTE was good in the quarter, following the increased focus on network performance, especially in North America. India was still impacted by the uncertain regulatory environment and declined YoY and Russia continued its slower development from H211.

In the quarter, the 50^thcontract for Evolved Packet Core was signed. The Antenna Integrated radio, which is part of the RBS6000 family, is now ready for volume deployment. The number of people covered by commercial LTE networks from Ericsson is 215 million. In total, 325 million people are covered by LTE. The introduction of LTE also drives operators’ interest for investments in core and IMS. The IP application router SSR 8020 is now in commercial operation.

Operating margin was negatively impacted YoY by the underlying business mix with more coverage than capacity projects and the European network modernization projects as well as lower volumes. Profitability was negatively impacted QoQ by lower volumes, however, this was partly offset by mobile broadband capacity investments. This underlying business mix, with higher share of coverage and network modernization projects than capacity projects, is expected to prevail short-term. The impact on profitability from the network modernization projects in Europe is a result of the strategic decision in 2010 to increase market share in Europe. Efficiency activities are ongoing to mitigate these effects.

Ericsson First Quarter Report 2012 4

GLOBAL SERVICES QUARTERLY SALES, SEK b.

EBITA MARGIN, PERCENT

GLOBAL SERVICES

SEK b.	Q1 2012			Q1 2011			YoY Change			Q4 2011			QoQ Change
Global Services sales		20.6			17.4			18	%		27.0			-24	%
Of which Professional Services		14.9			12.6			18	%		18.1			-18	%
Of which Managed Services		5.7			4.9			16	%		6.0			-6	%
Of which Network Rollout		5.7			4.9			18	%		8.9			-35	%
EBITA margin1)		7	%		7	%		—			6	%		—
Of which Professional Services		14	%		13	%		—			14	%		—
Of which Network Rollout		-11	%		-7	%		—			-10	%		—
Operating margin		6	%		7	%		—			6	%		—
Of which Professional Services		13	%		12	%		—			14	%		—
Of which Network Rollout		-11	%		-7	%		—			-10	%		—

¹⁾ EBITA – Earnings before interest, tax, amortizations and write-downs of acquired intangibles.

Global Services continued its good momentum. Organic and FX adjusted sales growth was 14% YoY. The increase was especially good in Professional Services, mainly driven by consulting and systems integration. This growth is due to a number of reasons; the impact from growing data usage on our customers’ business, network and IT environments and increased operator focus on service quality. Operators’ transformation in the voice, IP and OSS/BSS domains in order to reduce OPEX are also driving growth. Also this quarter, Network Rollout sales increased YoY, driven by high volumes of network modernization in Europe and coverage projects in other regions. Managed Services continued its good momentum, reflecting the 23 new contracts signed in Q411.

Global Services operating margin decreased slightly YoY due to increased loss in Network Rollout. Profitability improved in Professional Services YoY, mainly due to continued work with efficiency. Network Rollout continued to be negatively impacted by the network modernization projects in Europe and coverage projects. The margin impact from restructuring charges was 2%-points Q112 for Global Services as well as Professional Services, compared to 1%-point in Q111.

Ericsson now supports networks with more than 2.5 billion subscribers.

Other information	Q1 2012		Full year 2011
No. of signed managed services contracts		9		70
Of which expansions/extensions		4		32
No. of signed significant consulting & systems integration contracts1)		6		33
Number of subscribers in networks managed by Ericsson, end of period		> 900 m.		900 m.
Of which in network operations contracts		500 m.		500 m.
Number of Ericsson services professionals, end of period		57,000		56,000

¹⁾ In the areas of OSS/BSS, IP, Service Delivery Platforms and data center build projects.

Ericsson First Quarter Report 2012 5

SUPPORT SOLUTIONS QUARTERLY SALES, SEK b.

EBITA MARGIN, PERCENT

SUPPORT SOLUTIONS (PREVIOUSLY MULTIMEDIA)

SEK b.	Q1 2012			Q1 2011			YoY Change			Q4 2011			QoQ Change
Support Solutions sales		3.0			2.3			33	%		3.4			-11	%
EBITA margin1)		8	%		-7	%		—			6	%		—
Operating margin		-1	%		-15	%		—			0	%		—

¹⁾ EBITA – Earnings before interest, tax, amortizations and write-downs of acquired intangibles.

Organic and FX adjusted sales was 12% YoY, driven by good development in TV and multimedia brokering (IPX). The integration of Telcordia is proceeding as planned. Sales from the Telcordia operation are equally split between Support Solutions and Global Services. OSS was flat and BSS had a slow quarter, mainly related to a weaker development in India. Operating margins improved YoY due to increased volumes and cost efficiencies.

Number of subscribers served by our charging and billing solutions were 1.7 billion at end of period.

ST-ERICSSON

USD m.	Q1 2012		Q1 2011		YoY Change			Q4 2011		QoQ Change
Net sales		290		444		-35	%		409		-29	%
Adjusted operating income1)		-297		-149		-100	%		-207		-43	%
Operating income		-326		-178		-83	%		-241		-35	%
Net income		-312		-178		-75	%		-231		-35	%

¹⁾ Operating income adjusted for amortization of acquired intangibles and restructuring charges.

ST-Ericsson’s sales decreased substantially as anticipated due to a drop in sales of new products to one of the largest customers, in addition to the usual seasonal effect and continued decline in legacy products. The net debt at the end of the quarter was USD -956 m. Last quarter net debt was USD -798 m. ST-Ericsson is reported in US GAAP and Ericsson’s share in ST-Ericsson’s income before tax, adjusted to IFRS, was SEK -1.4 (-0.6) b. in the quarter. By the end of the quarter, ST-Ericsson had utilized USD 978 m. of a short-term credit facility of USD 1.1 b. granted on a 50/50 basis by the parent companies.

On April 23, 2012, ST-Ericsson announced a new strategic direction with the key components; focused R&D portfolio to deliver world class modems and ModAp systems, partnership signed for application processors, additional measures to accelerate time-to-market and lower break-even point.

Ericsson First Quarter Report 2012 6

Regional Overview

	First quarter 2012								Growth
SEK b.	Networks		Global Services		Support Solutions		Total		YoY			QoQ
North America		7.5		4.7		0.6		12.8		-3	%		14	%
Latin America		2.1		2.5		0.2		4.8		20	%		-31	%
Northern Europe and Central Asia		1.2		1.0		0.1		2.3		-32	%		-39	%
Western and Central Europe		1.5		2.6		0.2		4.3		-10	%		-18	%
Mediterranean		2.0		2.4		0.2		4.6		-4	%		-44	%
Middle East		1.3		1.7		0.2		3.2		3	%		-39	%
Sub-Saharan Africa		1.3		0.8		0.2		2.2		-1	%		-32	%
India		0.7		0.6		0.1		1.4		-55	%		-7	%
China and North East Asia		6.3		2.8		0.1		9.2		6	%		-16	%
South East Asia and Oceania		1.8		1.4		0.1		3.4		9	%		-16	%
Other		1.7		0.1		1.0		2.9		9	%		-14	%
Total		27.3		20.6		3.0		51.0		-4	%		-20	%

Revenue from the acquired Telcordia business operation, consolidated January 2012, is reported 50/50 between segments Global Services and Support Solutions. In the regional dimension, all of the Telcordia sales is reported in the Support Solution segment except for North America where it is split 50/50 between Global Services and Support Solutions. Multimedia brokering (IPX) was previously reported in each region in segment Support Solution. As of Q112 it is part of region “Other” in segment Support Solutions.

North America.Strong HSPA capacity sales and a continued build-out of 4G/LTE coverage more than offset the major decline in CDMA sales. In 2011, the networks business had a strong H1, while sales for mobile infrastructure equipment slowed down in H2 after the initial period with high spending. Services sales increased YoY driven by market share gains and a high level of project executions. Smartphone penetration is now more than 50% in the US market.

Latin America.The YoY increase was driven by services, both network rollout and system integration in OSS/BSS. Sales in Networks showed some growth YoY due to investments in mobile broadband coverage, but also enhancements in 2G. Support Solutions increased due to consolidation of Telcordia.

Northern Europe and Central Asia. Sales of Networks showed a major decrease YoY mainly due to continued slower investments in Russia. LTE rollouts and network modernization projects continued in the Nordics. Global Services increased YoY, mainly related to new managed services contracts. The QoQ decline in Global Services is due to slower rollouts in Russia.

Western and Central Europe. Networks sales were impacted by cautious operator spending, partly offset by network modernization projects. New managed services business is driving the YoY growth in Global Services.

Mediterranean.Networks sales decreased YoY primarily due to cautious operator spending. Network modernization projects continued to be deployed. Global Services sales showed good development YoY, fueled by managed services contracts in Italy and systems integration in Spain.

Middle East.YoY growth was mainly driven by strong sales in Saudi Arabia while business was slower in Turkey. Political unrest is still impacting the region and operators are cautious with infrastructure investments. Services grew strongly, especially in managed services and systems integration as operators are looking into network performance quality and operational efficiencies.

Ericsson First Quarter Report 2012 7

Sub-Saharan Africa. Mobile penetration continued to grow and compared to other regions, build out of voice services (2G) is still the main driver of infrastructure projects. However, in some markets the deployment of mobile broadband has begun. Sales were down YoY despite growth in Networks.

India.Regulatory uncertainty continued with Supreme Court ruling to revoke 122 2G licenses. In Q111, Networks sales were positively impacted by initial 3G rollouts. Operators have a strong focus on cost competitiveness, which has resulted in high interest in reducing their operating expenses. This has generated a growing managed services business. Strong QoQ growth in Support Solutions due to Telcordia consolidation.

China and North East Asia. The YoY increase is mainly related to continued data traffic growth in the region, especially in Japan and Korea. China had a YoY sales decline, primarily a result of good GSM deployments in H111. The QoQ sales decline is due to seasonality. The product mix is changing towards relatively more LTE coverage deployments in some key markets. The increase in Global Services YoY is mainly due to network rollout activities in China, Japan and Korea.

South East Asia and Oceania.Networks sales were positively impacted YoY by National Broadband Network (NBN) LTE deployment in Australia. In Bangladesh and Thailand, operators are planning for 3G spectrum progresses. Global Services showed good growth YoY, also due to the NBN LTE deployment.

Other. Licensing revenues showed stable development YoY. Also sales of cables, power modules and other businesses are included in “Other”. Multimedia brokering (IPX) was previously reported in each region, but from Q112 it is part of “Other”, under Support Solutions.

Market data

GROWTH RATES ARE BASED ON ERICSSON AND MARKET ESTIMATES

	Q1		Q1					FULL YEAR							Ericsson forecast
	2012		2011		Change			2009		2010		��	2011		2012
Mobile subscriptions, billion		6.2		5.5		12	%		4.6		5.3			6.0		6.7
Net additions, million		170		190		-12	%		640		700			650		700
Mobile broadband, million1)		1,100		710		61	%		360		620			1,000		1,400
Net additions, million		110		83		32	%		150		260			400		450

¹⁾ Mobile broadband includes handsets, tablets and mobile PCs for the following technologies: HSPA, LTE, CDMA2000 EV-DO, TD-SCDMA and WiMAX. Note: due to continuous improvements in reported data from operators, historical subscriptions figures might have changed compared to previously reported, affecting comparison of net additions and total figures. All figures are approximates.

Ericsson First Quarter Report 2012 8

Parent Company Information

Income after financial items was SEK 5.1 (3.1) b. During the quarter, Ericsson completed the divestment of its 50% share in Sony Ericsson. The divestment resulted in a gain of SEK 4.4 b. Other major changes in the Parent Company’s financial position for the quarter include; decreased cash, cash equivalents and short-term investments of SEK 4.2 b., increased current and non-current receivables from subsidiaries of SEK 7.3 b. and decreased current liabilities to subsidiaries of SEK 2.3 b. At the end of the quarter, cash, cash equivalents and short-term investments amounted to SEK 51.9 (56.1) b. By the end of the quarter, ST-Ericsson had utilized USD 489 million of a short-term credit facility.

In accordance with the conditions of the long-term variable compensation program (LTV) for Ericsson employees, 2,367,197 shares from treasury stock were sold or distributed to employees during the first quarter. The holding of treasury stock at March 31, 2012, was 60,479,306 Class B shares.

Other Information

DIVESTMENT OF SONY ERICSSON COMPLETED

On February 16, 2012, Ericsson announced the completion of the divestment of its 50% stake in Sony Ericsson Mobile Communications to Sony. The agreed cash consideration for the transaction is EUR 1.05 billion. The deal includes a broad IP cross-licensing agreement.

ACQUISITION OF BELAIR

On February 21, 2012, Ericsson announced the intention to acquire 100% of North American carrier grade WiFi company BelAir Networks. The company is based in Canada and has approximately 120 employees.

ACQUISITION OF TECHNICOLOR’S BROADCAST SERVICES DIVISION

On March 13, 2012, Ericsson announced the submission of a binding offer to acquire the broadcast services division of Technicolor. The purchase price is EUR 19 million and a potential earn-out based on 2015 revenues of the broadcast services activity of up to EUR 9 million. The acquisition brings about 900 skilled employees and playout operations in France, UK and in the Netherlands. The closing of the acquisition is subject to relevant customary regulatory administrative approvals and consultations.

INCREASED OWNERSHIP IN LG-ERICSSON

On March 22, 2012, Ericsson announced it has acquired additional shares in LG-Ericsson and now holds 75% of the total shares. Before the purchase, Ericsson held 50% of the shares plus one share. LG-Ericsson is a joint venture between LG Electronics and Ericsson. LG-Ericsson is headquartered in Seoul, Republic of Korea. The joint venture is fully consolidated by Ericsson, since Ericsson acquired Nortel’s part of the company in July 2010.

Ericsson First Quarter Report 2012 9

ASSESSMENT OF RISK ENVIRONMENT

Ericsson’s operational and financial risk factors and uncertainties along with our strategies and tactics to mitigate risk exposures or limit unfavorable outcomes are described in our Annual Report 2011. Compared to the risks described in the Annual Report 2011, no material, new or changed risk factors or uncertainties have been identified in the quarter.

Risk factors and uncertainties in focus during the forthcoming nine-month period for the Parent Company and the Ericsson Group include:

• Potential negative effects on operators’ willingness to invest in network development due to a increased uncertainty in the financial markets and a weak economic business environment as well as uncertainty regarding the financial stability of suppliers, for example due to lack of financing, or reduced consumer telecom spending, or increased pressure on us to provide financing;

• Effects on gross margins and/or working capital of the product mix in the Networks segment between sales of software, upgrades and extensions as well as break-in contracts;

• Effects on gross margins of the product mix in the Global Services segment including proportion of new network build-outs and share of new managed services deals with initial transition costs;

• A continued volatile sales pattern in the Support Solutions segment or variability in our overall sales seasonality could make it more difficult to forecast future sales;

• Effects of the ongoing industry consolidation among our customers as well as between our largest competitors, e.g. with postponed investments and intensified price competition as a consequence;

• Results and capital need of our major joint venture ST-Ericsson;

• Changes in foreign exchange rates, in particular USD and EUR;

• Political unrest or instability in certain markets;

• Effects on production and sales from restrictions with respect to timely and adequate supply of materials, components and production capacity and other vital services on competitive terms;

• Natural disasters, effecting production, supply and transportation.

Ericsson conducts business in certain countries which are subject to trade restrictions or which are focused on by certain investors. We stringently follow all relevant regulations and trade embargos applicable to us in our dealings with customers operating in such countries. Moreover, Ericsson operates globally in accordance with Group level policies and directives for business ethics and conduct. In no way should our business activities in these countries be construed as supporting a particular political agenda or regime. Stockholm, April 25, 2012

Telefonaktiebolaget LM Ericsson (publ)

Hans Vestberg, President and CEO

Date for next report: July 18, 2012

Ericsson First Quarter Report 2012 10

Auditors’ Review Report

We have reviewed this report for the period January 1, 2012, to March 31, 2012, for Telefonaktiebolaget LM Ericsson (publ). The board of directors and the CEO are responsible for the preparation and presentation of this financial information in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this financial information based on our review.

We conducted our review in accordance with the Swedish Standard on Review Engagements SÖG 2410, Review of Interim Report Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (ISA) and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act, regarding the Group, and with the Swedish Annual Accounts Act, regarding the Parent Company.

Stockholm, April 25, 2012

PricewaterhouseCoopers AB

Peter Nyllinge	Johan Engstam
Authorized Public Accountant	Authorized Public Accountant
Auditor in Charge

Ericsson First Quarter Report 2012 11

Editor’s Note

To read the complete report with tables, please go to:www.ericsson.com/res/investors/docs/q-reports/2012/3month12-en.pdf

Ericsson invites media, investors and analysts to a press conference at the Ericsson Studio, Grönlandsgången 4, Stockholm, at 09.00 (CET), April 25, 2012. 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 atwww.ericsson.com/press andwww.ericsson.com/investors

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

For Further Information, Please Contact

Helena Norrman, Senior Vice President, Communications

Phone: +46 10 719 3472

E-mail:investor.relations@ericsson.com ormedia.relations@ericsson.com

INVESTORS	MEDIA
Åse Lindskog, Vice President,	Ola Rembe, Vice President,
Head of Investor and Analyst Relations	Head of Corporate Public & Media
Phone: +46 10 719 9725	Relations
+46 730 244 872	Phone: +46 10 719 9727
E-mail:investor.relations@ericsson.com	+46 730 244 873
	E-mail:media.relations@ericsson.com
Stefan Jelvin, Director,
Investor Relations	Corporate Public & Media Relations
Phone: +46 10 714 2039	Phone: +46 10 719 69 92
E-mail:investor.relations@ericsson.com	E-mail:media.relations@ericsson.com
Åsa Konnbjer, Director,	Telefonaktiebolaget LM Ericsson (publ)
Investor Relations	Org. number: 556016-0680
Phone: +46 10 713 3928	Torshamnsgatan 23
E-mail:investor.relations@ericsson.com	SE-164 83 Stockholm
	Phone: +46 10 719 0000
Rikard Tunedal, Director,	www.ericsson.com
Investor Relations
Phone: +46 10 714 5400
E-mail:investor.relations@ericsson.com

Ericsson First Quarter Report 2012 12

Safe Harbor Statement of Ericsson under the US Private Securities Litigation Reform Act of 1995;

All statements made or incorporated by reference in this release, other than statements or characterizations of historical facts, are forward-looking statements. These forward-looking statements are based on our current expectations, estimates and projections about our industry, management’s beliefs and certain assumptions made by us. Forward-looking statements can often be identified by words such as “anticipates”, “expects”, “intends”, “plans”, “predicts”, “believes”, “seeks”, “estimates”, “may”, “will”, “should”, “would”, “potential”, “continue”, and variations or negatives of these words, and include, among others, statements regarding: (i) strategies, outlook and growth prospects; (ii) positioning to deliver future plans and to realize potential for future growth; (iii) liquidity and capital resources and expenditure, and our credit ratings; (iv) growth in demand for our products and services; (v) our joint venture activities; (vi) economic outlook and industry trends; (vii) developments of our markets; (viii) the impact of regulatory initiatives; (ix) research and development expenditures; (x) the strength of our competitors; (xi) future cost savings; (xii) plans to launch new products and services; (xiii) assessments of risks; (xiv) integration of acquired businesses; (xv) compliance with rules and regulations and (xvi) infringements of intellectual property rights of others.

In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. These forward-looking statements speak only as of the date hereof and are based upon the information available to us at this time. Such information is subject to change, and we will not necessarily inform you of such changes. These statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict. Therefore, our actual results could differ materially and adversely from those expressed in any forward-looking statements as a result of various factors. Important factors that may cause such a difference for Ericsson include, but are not limited to: (i) material adverse changes in the markets in which we operate or in global economic conditions; (ii) increased product and price competition; (iii) reductions in capital expenditure by network operators; (iv) the cost of technological innovation and increased expenditure to improve quality of service; (v) significant changes in market share for our principal products and services; (vi) foreign exchange rate or interest rate fluctuations; and (vii) the successful implementation of our business and operational initiatives.

Ericsson First Quarter Report 2012 13

Financial Statements and Additional Information

Financial statements	Page
Consolidated income statement		15
Statement of comprehensive income		15
Consolidated balance sheet		16
Consolidated statement of cash flows		17
Consolidated statement of changes in equity		18
Consolidated income statement - isolated quarters		19
Consolidated statement of cash flows - isolated quarters		20
Parent Company income statement		21
Parent Company balance sheet		21
Additional information	Page
Accounting policies		22
Net sales by segment by quarter		23
Sales growth for comparable units, adjusted for currency effects and hedging		23
Operating income by segment by quarter		24
Operating margin by segment by quarter		24
EBITA by segment by quarter		25
EBITA margin by segment by quarter		25
Net sales by region by quarter		26
Net sales by region by quarter (cont.)		27
Top 5 countries in sales		27
Net sales by region by segment		28
Provisions		29
Number of employees		29
Information on investments in assets subject to depreciation, amortization and impairment and write-downs		29
Other information		30
Ericsson planning assumptions for year 2012		30
Restructuring charges by function		31
Acquisition of Telcordia		32

Ericsson First Quarter Report 2012 14

CONSOLIDATED INCOME STATEMENT

	Jan - Mar									Jan - Dec
SEK million	2011			2012			Change			2011
Net sales		52,966			50,974			-4	%		226,921
Cost of sales		-32,578			-33,985			4	%		-147,200
Gross income		20,388			16,989			-17	%		79,721
Gross margin (%)		38.5	%		33.3	%					35.1	%
Research and development expenses		-7,991			-8,016			0	%		-32,638
Selling and administrative expenses		-6,441			-6,232			-3	%		-26,683
Operating expenses		-14,432			-14,248			-1	%		-59,321
Other operating income and expenses1)		343			7,749						1,278
Operating income before shares in earnings of JV and associated companies		6,299			10,490			67	%		21,678
Operating margin before shares in earnings of JV and associated companies (%)		11.9	%		20.6	%					9.6	%
Shares in earnings of JV and associated companies		-468			-1,403			200	%		-3,778
Operating income		5,831			9,087			56	%		17,900
Financial income		302			262			-13	%		2,882
Financial expenses		-306			-273			-11	%		-2,661
Income after financial items		5,827			9,076			56	%		18,121
Taxes		-1,747			-272						-5,552
Net income		4,080			8,804			116	%		12,569
Net income attributable to:
-Stockholders of the Parent Company		4,103			8,950						12,194
-Non-controlling interests		-23			-146						375
Other information
Average number of shares, basic (million)		3,202			3,212						3,206
Earnings per share, basic (SEK)2)		1.28			2.79						3.80
Earnings per share, diluted (SEK)2)		1.27			2.76						3.77

STATEMENT OF COMPREHENSIVE INCOME

	Jan - Mar				Jan -Dec
SEK million	2011		2012		2011
Net income		4,080		8,804		12,569
Other comprehensive income
Actuarial gains and losses, and the effect of the asset ceiling, related to pensions		388		436		-6,963
Revaluation of other investments in shares and participations
Fair value remeasurement		-1		—		—
Cash flow hedges
Gains/losses arising during the period		1,624		785		996
Reclassification adjustments for gains/losses included in profit or loss		-921		-213		-2,028
Adjustments for amounts transferred to initial carrying amount of hedged items		—		92		—
Changes in cumulative translation adjustments		-3,417		-2,004		-964
Share of other comprehensive income on JV and associated companies		-744		-52		-262
Tax on items relating to components of other comprehensive income		-222		-392		2,158
Total other comprehensive income		-3,293		-1,348		-7,063
Total comprehensive income		787		7,456		5,506
Total comprehensive income attributable to:
Stockholders of the Parent Company		906		7,650		5,081
Non-controlling interests		-119		-194		425

¹⁾  Includes gain on sale of Sony Ericsson SEK 7,691 million in Q1 2012

²⁾  Based on Net income attributable to stockholders of the Parent Company

Ericsson First Quarter Report 2012, April 25 2012 15

CONSOLIDATED BALANCE SHEET

SEK million	Dec 31 2011		Mar 31 2012
ASSETS
Non-current assets
Intangible assets
Capitalized development expenses		3,523		3,529
Goodwill		27,438		31,245
Intellectual property rights, brands and other intangible assets		13,083		17,263
Property, plant and equipment		10,788		11,268
Financial assets
Equity in JV and associated companies		5,965		3,271
Other investments in shares and participations		2,199		2,122
Customer financing, non-current		1,400		1,139
Other financial assets, non-current		4,117		5,747
Deferred tax assets		13,020		13,231
		81,533		88,815
Current assets
Inventories		33,070		32,546
Trade receivables		64,522		60,695
Customer financing, current		2,845		2,798
Other current receivables		17,837		20,333
Short-term investments1)		41,866		44,992
Cash and cash equivalents		38,676		30,638
		198,816		192,002
Total assets		280,349		280,817
EQUITY AND LIABILITIES
Equity
Stockholders’ equity		143,105		150,506
Non-controlling interest in equity of subsidiaries		2,165		1,962
		145,270		152,468
Non-current liabilities
Post-employment benefits		10,016		9,339
Provisions, non-current		280		208
Deferred tax liabilities		2,250		3,749
Borrowings, non-current		23,256		22,969
Other non-current liabilities		2,248		2,590
		38,050		38,855
Current liabilities
Provisions, current		5,985		5,722
Borrowings, current		7,765		6,229
Trade payables		25,309		22,283
Other current liabilities		57,970		55,260
		97,029		89,494
Total equity and liabilities		280,349		280,817
Of which interest-bearing liabilities and post-employment benefits		41,037		38,537
Of which net cash		39,505		37,093
Assets pledged as collateral		452		403
Contingent liabilities		609		581

¹⁾  Including loan to ST-Ericsson of SEK 3,241 (2,759) million

Ericsson First Quarter Report 2012, April 25 2012 16

CONSOLIDATED STATEMENT OF CASH FLOWS

	Jan - Mar				Jan - Dec
SEK million	2011		2012		2011
Operating activities
Net income		4,080		8,804		12,569
Adjustments to reconcile net income to cash
Taxes		721		-1,118		1,994
Earnings/dividends in JV and associated companies		452		1,290		3,710
Depreciation, amortization and impairment losses		2,209		2,315		9,036
Other		-1,201		-7,022		-2,127
		6,261		4,269		25,182
Changes in operating net assets
Inventories		-3,462		-59		-3,243
Customer financing, current and non-current		196		282		74
Trade receivables		-1,610		3,722		-1,700
Trade payables		-255		-2,713		-1,648
Provisions and post-employment benefits		-752		-1,771		-5,695
Other operating assets and liabilities, net		-3,284		-2,999		-2,988
		-9,167		-3,538		-15,200
Cash flow from operating activities		-2,906		731		9,982
Investing activities
Investments in property, plant and equipment		-980		-1,648		-4,994
Sales of property, plant and equipment		97		309		386
Acquisitions/divestments of subsidiaries and other operations, net1)		-455		-1,730		-3,128
Product development		-269		-251		-1,515
Other investing activities		179		195		-900
Short-term investments		3,706		-3,999		14,692
Cash flow from investing activities		2,278		-7,124		4,541
Cash flow before financing activities		-628		-6,393		14,523
Financing activities
Dividends paid		—		—		-7,455
Other financing activities		1,240		-1,318		961
Cash flow from financing activities		1,240		-1,318		-6,494
Effect of exchange rate changes on cash		-720		-327		-217
Net change in cash		-108		-8,038		7,812
Cash and cash equivalents, beginning of period		30,864		38,676		30,864
Cash and cash equivalents, end of period		30,756		30,638		38,676

¹⁾  Includes payment of external loan of SEK -6.2 b. attributable to the acquisition of Telcordia in Q1 2012

Ericsson First Quarter Report 2012, April 25 2012 17

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

SEK million	Jan - Mar 2011		Jan - Mar 2012		Jan -  Dec 2011
Opening balance		146,785		145,270		146,785
Total comprehensive income		787		7,456		5,506
Sale/Repurchase of own shares		23		17		92
Stock purchase		107		108		413
Dividends paid		—		—		-7,455
Transactions with non-controlling interests		—		-384		-71
Closing balance		147,702		152,467		145,270

Ericsson First Quarter Report 2012, April 25 2012 18

CONSOLIDATED INCOME STATEMENT – ISOLATED QUARTERS

	2011												2012
Isolated quarters, SEK million	Q1			Q2			Q3			Q4			Q1
Net sales		52,966			54,770			55,518			63,667			50,974
Cost of sales		-32,578			-34,064			-36,095			-44,463			-33,985
Gross income		20,388			20,706			19,423			19,204			16,989
Gross margin (%)		38.5	%		37.8	%		35.0	%		30.2	%		33.3	%
Research and development expenses		-7,991			-8,108			-7,824			-8,715			-8,016
Selling and administrative expenses		-6,441			-7,741			-5,664			-6,837			-6,232
Operating expenses		-14,432			-15,849			-13,488			-15,552			-14,248
Other operating income and expenses1)		343			166			366			403			7,749
Operating income before shares in earnings of JV and associated companies		6,299			5,023			6,301			4,055			10,490
Operating margin before shares in earnings of JV and associated companies (%)		11.9	%		9.2	%		11.3	%		6.4	%		20.6	%
Shares in earnings of JV and associated companies		-468			-771			-640			-1,899			-1,403
Operating income		5,831			4,252			5,661			2,156			9,087
Financial income		302			977			1,198			405			262
Financial expenses		-306			-636			-987			-732			-273
Income after financial items		5,827			4,593			5,872			1,829			9,076
Taxes		-1,747			-1,377			-2,090			-338			-272
Net income		4,080			3,216			3,782			1,491			8,804
Net income attributable to:
- Stockholders of the Parent Company		4,103			3,116			3,821			1,154			8,950
- Non-controlling interests		-23			100			-39			337			-146
Other information
Average number of shares, basic (million)		3,202			3,204			3,207			3,209			3,212
Earnings per share, basic (SEK)2)		1.28			0.97			1.19			0.36			2.79
Earnings per share, diluted (SEK)2)		1.27			0.96			1.18			0.36			2.76

¹⁾ Includes gain on sale of Sony Ericsson SEK 7,691 million in Q1 2012

²⁾  Based on Net income attributable to stockholders of the Parent Company

Ericsson First Quarter Report 2012, April 25 2012 19

CONSOLIDATED STATEMENT OF CASH FLOWS – ISOLATED QUARTERS

	2011								2012
Isolated quarters, SEK million	Q1		Q2		Q3		Q4		Q1
Operating activities
Net income		4,080		3,216		3,782		1,491		8,804
Adjustments to reconcile net income to cash
Taxes		721		-29		550		752		-1,118
Earnings/dividends in JV and associated companies		452		783		658		1,817		1,290
Depreciation, amortization and impairment losses		2,209		2,172		2,227		2,428		2,315
Other		-1,201		-1,107		-291		472		-7,022
Net income affecting cash		6,261		5,035		6,926		6,960		4,269
Changes in operating net assets
Inventories		-3,462		-2,370		-2,619		5,208		-59
Customer financing, current and non-current		196		195		-607		290		282
Trade receivables		-1,610		2,114		-2,769		565		3,722
Trade payables		-255		-834		-805		246		-2,713
Provisions and post-employment benefits		-752		-485		-2,180		-2,278		-1,771
Other operating assets and liabilities, net		-3,284		2,126		3,694		-5,524		-2,999
		-9,167		746		-5,286		-1,493		-3,538
Cash flow from operating activities		-2,906		5,781		1,640		5,467		731
Investing activities
Investments in property, plant and equipment		-980		-1,196		-1,294		-1,524		-1,648
Sales of property, plant and equipment		97		58		59		172		309
Acquisitions/divestments of subsidiaries and other operations, net1)		-455		-507		-1,931		-235		-1,730
Product development		-269		-429		-257		-560		-251
Other investing activities		179		-100		-769		-210		195
Short-term investments		3,706		3,196		9,323		-1,533		-3,999
Cash flow from investing activities		2,278		1,022		5,131		-3,890		-7,124
Cash flow before financing activities		-628		6,803		6,771		1,577		-6,393
Financing activities
Dividends paid		—		-7,209		-241		-5		—
Other financing activities		1,240		-1,097		-10		828		-1,318
Cash flow from financing activities		1,240		-8,306		-251		823		-1,318
Effect of exchange rate changes on cash		-720		211		278		14		-327
Net change in cash		-108		-1,292		6,798		2,414		-8,038
Cash and cash equivalents, beginning of period		30,864		30,756		29,464		36,262		38,676
Cash and cash equivalents, end of period		30,756		29,464		36,262		38,676		30,638

¹⁾  Includes payment of external loan of SEK -6.2 b. attributable to the acquisition of Telcordia in Q1 2012

Ericsson First Quarter Report 2012, April 25 2012 20

PARENT COMPANY INCOME STATEMENT

	Jan - Mar				Jan - Dec
SEK million	2011		2012		2011
Net sales		—		—		—
Cost of sales		—		—		—
Gross income		—		—		—
Operating expenses		-419		-147		-2,121
Other operating income and expenses		746		561		3,184
Operating income		327		414		1,063
Financial net		2,767		4,720		3,328
Income after financial items		3,094		5,134		4,391
Transfers to (-) / from untaxed reserves		—		—		339
Taxes		-130		-109		-103
Net income		2,964		5,025		4,627

STATEMENT OF COMPREHENSIVE INCOME

	Jan - Mar				Jan - Dec
SEK million	2011		2012		2011
Net income		2,964		5,025		4,627
Cash flow hedges
Gains/losses arising during the period		—		-64		203
Adjustments for amounts transferred to initial carrying amount of hegded items		—		-139		—
Tax on items reported directly in or transferred from equity		—		—		—
Other comprehensive income		—		-203		203
Total comprehensive income		2,964		4,822		4,830

PARENT COMPANY BALANCE SHEET

	Dec 31		Mar 31
SEK million	2011		2012
ASSETS
Fixed assets
Intangible assets		1,088		1,027
Tangible assets		491		479
Financial assets		103,663		108,422
		105,242		109,928
Current assets
Inventories		61		50
Receivables1)		23,327		24,110
Short-term investments		38,852		41,470
Cash and cash equivalents		17,288		10,492
		79,528		76,122
Total assets		184,770		186,050
STOCKHOLDERS’ EQUITY, PROVISIONS AND LIABILITIES
Equity
Restricted equity		47,859		47,859
Non-restricted equity		40,720		45,561
		88,579		93,420
Untaxed reserves		676		676
Provisions		651		1,156
Non-current liabilities		48,373		48,185
Current liabilities		46,491		42,613
Total stockholders’ equity, provisions and liabilities		184,770		186,050
Assets pledged as collateral		452		403
Contingent liabilities		18,518		16,023

¹⁾  Including loan to ST-Ericsson of SEK 3,241 (2,759) million.

Ericsson First Quarter Report 2012, April 25 2012 21

Accounting Policies

The Group

This interim report is prepared in accordance with IAS 34. The term “IFRS” used in this document refers to the application of IAS and IFRS as well as interpretations of these standards as issued by IASB’s Standards Interpretation Committee (SIC) and IFRS Interpretations Committee, (IFRIC). The accounting policies adopted are consistent with those of the annual report for the year ended December 31, 2011, and should be read in conjunction with that annual report.

As from January 1, 2012, the Company has applied the following new or amended IFRSs and IFRICs:

• Amendment to IAS 12, income taxes: on deferred tax: recovery of underlying assets (not yet endorsed by the EU)

• Amendments to IFRS 7, Financial instruments Disclosures: Transfers of Financial Assets

None of the new or amended standards and interpretations has had any significant impact on the financial result or position of the Company. There is no difference between IFRS effective as per March 31, 2012 and IFRS as endorsed by the EU, except for IAS 12 above.

Ericsson First Quarter Report 2012, April 25 2012 22

NET SALES BY SEGMENT BY QUARTER

Segments Sony Ericsson and ST-Ericsson are reported in accordance with the equity method, thus their sales are not included.

	2011												2012
Isolated quarters, SEK million	Q1			Q2			Q3			Q4			Q1
Networks		33,249			33,360			32,506			33,280			27,314
Global Services		17,435			19,036			20,438			26,975			20,631
Of which Professional Services		12,571			13,463			14,719			18,081			14,884
Of which Managed Services		4,924			4,724			5,304			6,046			5,708
Of which Network Rollout		4,864			5,573			5,719			8,894			5,747
Support Solutions		2,282			2,374			2,574			3,412			3,029
Total		52,966			54,770			55,518			63,667			50,974
	2011												2012
Sequential change, percent	Q1			Q2			Q3			Q4			Q1
Networks		-9	%		0	%		-3	%		2	%		-18	%
Global Services		-24	%		9	%		7	%		32	%		-24	%
Of which Professional Services		-25	%		7	%		9	%		23	%		-18	%
Of which Managed Services		-8	%		-4	%		12	%		14	%		-6	%
Of which Network Rollout		-21	%		15	%		3	%		56	%		-35	%
Support Solutions		-34	%		4	%		8	%		33	%		-11	%
Total		-16	%		3	%		1	%		15	%		-20	%
	2011												2012
Year over year change, percent	Q1			Q2			Q3			Q4			Q1
Networks		35	%		31	%		25	%		-9	%		-18	%
Global Services		-4	%		-5	%		7	%		18	%		18	%
Of which Professional Services		-5	%		-9	%		7	%		8	%		18	%
Of which Managed Services		1	%		-16	%		1	%		13	%		16	%
Of which Network Rollout		0	%		6	%		7	%		44	%		18	%
Support Solutions		-1	%		-2	%		11	%		-2	%		33	%
Total		17	%		14	%		17	%		1	%		-4	%
	2011												2012
Year to date, SEK million	Jan - Mar			Jan - Jun			Jan - Sep			Jan - Dec			Jan - Mar
Networks		33,249			66,609			99,115			132,395			27,314
Global Services		17,435			36,471			56,909			83,884			20,631
Of which Professional Services		12,571			26,034			40,753			58,834			14,884
Of which Managed Services		4,924			9,648			14,952			20,998			5,708
Of which Network Rollout		4,864			10,437			16,156			25,050			5,747
Support Solutions		2,282			4,656			7,230			10,642			3,029
Total		52,966			107,736			163,254			226,921			50,974
Year to date,	2011												2012
year over year change, percent	Jan - Mar			Jan - Jun			Jan - Sep			Jan - Dec			Jan - Mar
Networks		35	%		33	%		30	%		17	%		-18	%
Global Services		-4	%		-4	%		-1	%		5	%		18	%
Of which Professional Services		-5	%		-7	%		-3	%		1	%		18	%
Of which Managed Services		1	%		-8	%		-5	%		-1	%		16	%
Of which Network Rollout		0	%		3	%		5	%		16	%		18	%
Support Solutions		-1	%		-2	%		3	%		1	%		33	%
Total		17	%		16	%		16	%		12	%		-4	%

SALES GROWTH FOR COMPARABLE UNITS, ADJUSTED FOR CURRENCY EFFECTS AND HEDGING

	2012
Sequential change, percent	Q1
Networks		-19	%
Global Services		-25	%
Support Solutions		-25	%
Total		-22	%
Isolated quarter,	2012
Year over year change, percent	Q1
Networks		-18	%
Global Services		14	%
Support Solutions		12	%
Total		-6	%
Year to date,	2012
year over year change, percent	Jan - Mar
Networks		-18	%
Global Services		14	%
Support Solutions		12	%
Total		-6	%

Ericsson First Quarter Report 2012, April 25 2012 23

OPERATING INCOME BY SEGMENT BY QUARTER

	2011												2012
Isolated quarters, SEK million	Q1			Q2			Q3			Q4			Q1
Networks		5,744			4,599			4,277			2,675			1,649
Global Services		1,146			1,030			1,757			1,611			1,267
Of which Professional Services		1,486			1,661			2,023			2,498			1,908
Of which Network Rollout		-340			-631			-266			-887			-641
Support Solutions		-338			-267			90			11			-28
Unallocated 1)		-228			-204			164			-233			-97
Subtotal Segments excluding Sony Ericsson and ST-Ericsson		6,324			5,158			6,288			4,064			2,791
Sony Ericsson2)		71			-208			75			-1,137			7,691
ST-Ericsson		-564			-698			-702			-771			-1,395
Subtotal Sony Ericsson and ST-Ericsson		-493			-906			-627			-1,908			6,296
Total		5,831			4,252			5,661			2,156			9,087
	2011												2012
Year to date, SEK million	Jan - Mar			Jan - Jun			Jan - Sep			Jan - Dec			Jan - Mar
Networks		5,744			10,343			14,620			17,295			1,649
Global Services		1,146			2,176			3,933			5,544			1,267
Of which Professional Services		1,486			3,147			5,170			7,668			1,908
Of which Network Rollout		-340			-971			-1,237			-2,124			-641
Support Solutions		-338			-605			-515			-504			-28
Unallocated 1)		-228			-432			-268			-501			-97
Subtotal Segments excluding Sony Ericsson and ST-Ericsson		6,324			11,482			17,770			21,834			2,791
Sony Ericsson2)		71			-137			-62			-1,199			7,691
ST-Ericsson		-564			-1,262			-1,964			-2,735			-1,395
Subtotal Sony Ericsson and ST-Ericsson		-493			-1,399			-2,026			-3,934			6,296
Total		5,831			10,083			15,744			17,900			9,087
OPERATING MARGIN BY SEGMENT BY QUARTER
	2011												2012
As percentage of net sales, isolated quarters	Q1			Q2			Q3			Q4			Q1
Networks		17	%		14	%		13	%		8	%		6	%
Global Services		7	%		5	%		9	%		6	%		6	%
Of which Professional Services		12	%		12	%		14	%		14	%		13	%
Of which Network Rollout		-7	%		-11	%		-5	%		-10	%		-11	%
Support Solutions		-15	%		-11	%		3	%		0	%		-1	%
Subtotal excluding Sony Ericsson and ST-Ericsson		12	%		9	%		11	%		6	%		5	%
	2011												2012
As percentage of net sales, Year to date	Jan - Mar			Jan - Jun			Jan - Sep			Jan - Dec			Jan - Mar
Networks		17	%		16	%		15	%		13	%		6	%
Global Services		7	%		6	%		7	%		7	%		6	%
Of which Professional Services		12	%		12	%		13	%		13	%		13	%
Of which Network Rollout		-7	%		-9	%		-8	%		-8	%		-11	%
Support Solutions		-15	%		-13	%		-7	%		-5	%		-1	%
Subtotal excluding Sony Ericsson and ST-Ericsson		12	%		11	%		11	%		10	%		5	%

¹⁾  “Unallocated” consists mainly of costs for corporate staff, non-operational capital gains and losses

²⁾  Gain on sale of Sony Ericsson in SEK 7,691 million in Q1 2012

Ericsson First Quarter Report 2012, April 25 2012 24

EBITA BY SEGMENT BY QUARTER

	2011												2012
Isolated quarters, SEK million	Q1			Q2			Q3			Q4			Q1
Networks		6,571			5,417			5,123			3,437			2,343
Global Services		1,278			1,150			1,867			1,720			1,464
Of which Professional Services		1,597			1,760			2,111			2,583			2,086
Of which Network Rollout		-319			-610			-244			-863			-622
Support Solutions		-163			-93			270			195			236
Unallocated 1)		-226			-204			165			-203			-96
Subtotal Segments excluding Sony Ericsson and ST-Ericsson		7,460			6,270			7,425			5,149			3,947
Sony Ericsson2)		71			-208			75			-1,137			7,691
ST-Ericsson		-564			-698			-702			-771			-1,395
Subtotal Sony Ericsson and ST-Ericsson		-493			-906			-627			-1,908			6,296
Total		6,967			5,364			6,798			3,241			10,243
	2011												2012
Year to date, SEK million	Jan - Mar			Jan - Jun			Jan - Sep			Jan - Dec			Jan - Mar
Networks		6,571			11,988			17,111			20,548			2,343
Global Services		1,278			2,428			4,295			6,015			1,464
Of which Professional Services		1,597			3,357			5,468			8,051			2,086
Of which Network Rollout		-319			-929			-1,173			-2,036			-622
Support Solutions		-163			-256			14			209			236
Unallocated 1)		-226			-430			-265			-468			-96
Subtotal Segments excluding Sony Ericsson and ST-Ericsson		7,460			13,730			21,155			26,304			3,947
Sony Ericsson2)		71			-137			-62			-1,199			7,691
ST-Ericsson		-564			-1,262			-1,964			-2,735			-1,395
Subtotal Sony Ericsson and ST-Ericsson		-493			-1,399			-2,026			-3,934			6,296
Total		6,967			12,331			19,129			22,370			10,243
EBITA MARGIN BY SEGMENT BY QUARTER
	2011												2012
As percentage of net sales, isolated quarters	Q1			Q2			Q3			Q4			Q1
Networks		20	%		16	%		16	%		10	%		9	%
Global Services		7	%		6	%		9	%		6	%		7	%
Of which Professional Services		13	%		13	%		14	%		14	%		14	%
Of which Network Rollout		-7	%		-11	%		-4	%		-10	%		-11	%
Support Solutions		-7	%		-4	%		11	%		6	%		8	%
Subtotal excluding Sony Ericsson and ST-Ericsson		14	%		11	%		13	%		8	%		8	%
	2011												2012
As percentage of net sales, Year to date	Jan - Mar			Jan - Jun			Jan - Sep			Jan - Dec			Jan - Mar
Networks		20	%		18	%		17	%		16	%		9	%
Global Services		7	%		7	%		8	%		7	%		7	%
Of which Professional Services		13	%		13	%		13	%		14	%		14	%
Of which Network Rollout		-7	%		-9	%		-7	%		-8	%		-11	%
Support Solutions		-7	%		-6	%		0	%		2	%		8	%
Subtotal excluding Sony Ericsson and ST-Ericsson		14	%		13	%		13	%		12	%		8	%

¹⁾  “Unallocated” consists mainly of costs for corporate staff, non-operational capital gains and losses

²⁾  Gain on sale of Sony Ericsson in SEK 7,691 million in Q1 2012

Ericsson First Quarter Report 2012, April 25 2012 25

NET SALES BY REGION BY QUARTER

	2011												2012
Isolated quarters, SEK million	Q1			Q2			Q3			Q4			Q1
North America		13,162			12,324			12,096			11,203			12,775
Latin America		4,015			4,927			6,012			7,028			4,822
Northern Europe & Central Asia1) 2)		3,365			4,552			3,527			3,781			2,292
Western & Central Europe2)		4,806			4,342			4,612			5,270			4,306
Mediterranean 2)		4,799			5,543			5,225			8,240			4,620
Middle East		3,070			3,546			3,650			5,195			3,157
Sub Saharan Africa		2,212			2,214			2,519			3,218			2,200
India		3,169			2,798			2,273			1,522			1,421
China & North East Asia		8,633			9,025			9,662			10,889			9,154
South East Asia & Oceania		3,108			3,033			3,720			4,009			3,374
Other1) 2)		2,627			2,466			2,222			3,312			2,853
Total		52,966			54,770			55,518			63,667			50,974
1)    Of which Sweden		927			1,103			944			908			834
2)    Of which EU		10,020			10,317			10,195			13,428			9,502
	2011												2012
Sequential change, percent	Q1			Q2			Q3			Q4			Q1
North America		-6	%		-6	%		-2	%		-7	%		14	%
Latin America		-34	%		23	%		22	%		17	%		-31	%
Northern Europe & Central Asia1) 2)		-30	%		35	%		-23	%		7	%		-39	%
Western & Central Europe2)		-19	%		-10	%		6	%		14	%		-18	%
Mediterranean2)		-31	%		16	%		-6	%		58	%		-44	%
Middle East		-34	%		16	%		3	%		42	%		-39	%
Sub Saharan Africa		9	%		0	%		14	%		28	%		-32	%
India		11	%		-12	%		-19	%		-33	%		-7	%
China & North East Asia		-9	%		5	%		7	%		13	%		-16	%
South East Asia & Oceania		-21	%		-2	%		23	%		8	%		-16	%
Other1) 2)		25	%		-6	%		-10	%		49	%		-14	%
Total		-16	%		3	%		1	%		15	%		-20	%
1)    Of which Sweden		-21	%		19	%		-14	%		-4	%		-8	%
2)    Of which EU		-20	%		3	%		-1	%		32	%		-29	%
	2011												2012
Year-over-year change, percent	Q1			Q2			Q3			Q4			Q1
North America		39	%		-6	%		-6	%		-20	%		-3	%
Latin America		1	%		17	%		64	%		16	%		20	%
Northern Europe & Central Asia1) 2)		46	%		70	%		49	%		-22	%		-32	%
Western & Central Europe2)		-8	%		-2	%		7	%		-11	%		-10	%
Mediterranean2)		-5	%		-2	%		4	%		19	%		-4	%
Middle East		-22	%		-7	%		34	%		12	%		3	%
Sub Saharan Africa		-9	%		-25	%		40	%		59	%		-1	%
India		38	%		107	%		7	%		-46	%		-55	%
China & North East Asia		74	%		96	%		39	%		15	%		6	%
South East Asia & Oceania		-12	%		-17	%		-3	%		2	%		9	%
Other1) 2)		37	%		49	%		19	%		57	%		9	%
Total		17	%		14	%		17	%		1	%		-4	%
1)    Of which Sweden		-11	%		11	%		-8	%		-22	%		-10	%
2)    Of which EU		-9	%		-1	%		5	%		7	%		-5	%

Ericsson First Quarter Report 2012, April 25 2012 26

NET SALES BY REGION BY QUARTER (continued)

	2011												2012
Year to date, SEK million	Jan - Mar			Jan - Jun			Jan - Sep			Jan - Dec			Jan - Mar
North America		13,162			25,486			37,582			48,785			12,775
Latin America		4,015			8,942			14,954			21,982			4,822
Northern Europe & Central Asia1) 2)		3,365			7,917			11,444			15,225			2,292
Western & Central Europe2)		4,806			9,148			13,760			19,030			4,306
Mediterranean2)		4,799			10,342			15,567			23,807			4,620
Middle East		3,070			6,616			10,266			15,461			3,157
Sub Saharan Africa		2,212			4,426			6,945			10,163			2,200
India		3,169			5,967			8,240			9,762			1,421
China & North East Asia		8,633			17,658			27,320			38,209			9,154
South East Asia & Oceania		3,108			6,141			9,861			13,870			3,374
Other1) 2)		2,627			5,093			7,315			10,627			2,853
Total		52,966			107,736			163,254			226,921			50,974
1)        Of which Sweden		927			2,030			2,974			3,882			834
2)  ��     Of which EU		10,020			20,337			30,532			43,960			9,502
Year to date,	2011												2012
year-over-year change, percent	Jan - Mar			Jan - Jun			Jan - Sep			Jan - Dec			Jan - Mar
North America		39	%		13	%		6	%		-1	%		-3	%
Latin America		1	%		10	%		26	%		23	%		20	%
Northern Europe & Central Asia1) 2)		46	%		59	%		56	%		25	%		-32	%
Western & Central Europe2)		-8	%		-5	%		-1	%		-4	%		-10	%
Mediterranean2)		-5	%		-3	%		-1	%		5	%		-4	%
Middle East		-22	%		-15	%		-2	%		2	%		3	%
Sub Saharan Africa		-9	%		-18	%		-3	%		11	%		-1	%
India		38	%		63	%		42	%		13	%		-55	%
China & North East Asia		74	%		85	%		66	%		47	%		6	%
South East Asia & Oceania		-12	%		-14	%		-10	%		-7	%		9	%
Other1) 2)		37	%		43	%		35	%		41	%		9	%
Total		17	%		16	%		16	%		12	%		-4	%
1)        Of which Sweden		-11	%		-1	%		-3	%		-8	%		-10	%
2)        Of which EU		-9	%		-5	%		-2	%		1	%		-5	%

TOP 5 COUNTRIES IN SALES

	Jan-Mar			Jan-Mar
Country	2011			2012
United States		24	%		24	%
Japan		8	%		9	%
China		6	%		5	%
Korea, Republic of		3	%		4	%
Italy		3	%		3	%

Ericsson First Quarter Report 2012, April 25 2012 27

NET SALES BY REGION BY SEGMENT

Since the segments Sony Ericsson and ST-Ericsson are reported in accordance with the equity method, their sales are not included below. Net sales related to these segments are disclosed under SEGMENT RESULTS. Net sales related to other segments are set out below.

Revenue from Telcordia is reported 50/50 between Segments Global Services and Support Solutions. In the regional dimension, all of Telcordia sales is reported in Support Solutions, except for North America where it is split 50/50. Multimedia brokering (IPX) was previously reported in each region in Segment Support Solutions, from Q112 it is part of region “Other” in Segment Support Solutions.

Isolated quarter	Q1, SEK million												Accumulated Jan - Mar 2012, SEK million
2012	Networks			Global Services			Support Solutions			Total			Networks			Global Services			Support Solutions			Total
North America		7,485			4,702			588			12,775			7,485			4,702			588			12,775
Latin America		2,064			2,524			234			4,822			2,064			2,524			234			4,822
Northern Europe & Central Asia		1,192			1,020			80			2,292			1,192			1,020			80			2,292
Western & Central Europe		1,535			2,576			195			4,306			1,535			2,576			195			4,306
Mediterranean		2,026			2,424			170			4,620			2,026			2,424			170			4,620
Middle East		1,317			1,652			188			3,157			1,317			1,652			188			3,157
Sub Saharan Africa		1,257			793			150			2,200			1,257			793			150			2,200
India		660			623			138			1,421			660			623			138			1,421
China & North East Asia		6,280			2,752			122			9,154			6,280			2,752			122			9,154
South East Asia & Oceania		1,820			1,418			136			3,374			1,820			1,418			136			3,374
Other		1,678			147			1,028			2,853			1,678			147			1,028			2,853
Total		27,314			20,631			3,029			50,974			27,314			20,631			3,029			50,974
Share of Total		54	%		40	%		6	%		100	%		54	%		40	%		6	%		100	%

	Q1 2012
Sequential change, percent	Networks			Global Services			Support Solutions			Total
North America		49	%		-18	%		29	%		14	%
Latin America		-37	%		-26	%		-27	%		-31	%
Northern Europe & Central Asia		-26	%		-50	%		-38	%		-39	%
Western & Central Europe		-28	%		-10	%		-33	%		-18	%
Mediterranean		-46	%		-39	%		-68	%		-44	%
Middle East		-45	%		-28	%		-62	%		-39	%
Sub Saharan Africa		-34	%		-26	%		-36	%		-32	%
India		2	%		-23	%		116	%		-7	%
China & North East Asia		-15	%		-17	%		-47	%		-16	%
South East Asia & Oceania		-17	%		-12	%		-36	%		-16	%
Other		-44	%		-201	%		129	%		-14	%
Total		-18	%		-24	%		-11	%		-20	%
	Q1 2012
Year over year change, percent	Networks			Global Services			Support Solutions			Total
North America		-18	%		22	%		137	%		-3	%
Latin America		3	%		40	%		10	%		20	%
Northern Europe & Central Asia		-50	%		22	%		-37	%		-32	%
Western & Central Europe		-29	%		6	%		-11	%		-10	%
Mediterranean		-10	%		7	%		-39	%		-4	%
Middle East		-21	%		29	%		48	%		3	%
Sub Saharan Africa		5	%		-6	%		-14	%		-1	%
India		-71	%		-12	%		-23	%		-55	%
China & North East Asia		-3	%		34	%		9	%		6	%
South East Asia & Oceania		6	%		16	%		-15	%		9	%
Other		-17	%		-13	%		134	%		9	%
Total		-18	%		18	%		33	%		-4	%

	Jan - Mar 2012
Year over year change, percent	Networks			Global Services			Support Solutions			Total
North America		-18	%		22	%		137	%		-3	%
Latin America		3	%		40	%		10	%		20	%
Northern Europe & Central Asia		-50	%		22	%		-37	%		-32	%
Western & Central Europe		-29	%		6	%		-11	%		-10	%
Mediterranean		-10	%		7	%		-39	%		-4	%
Middle East		-21	%		29	%		48	%		3	%
Sub Saharan Africa		5	%		-6	%		-14	%		-1	%
India		-71	%		-12	%		-23	%		-55	%
China & North East Asia		-3	%		34	%		9	%		6	%
South East Asia & Oceania		6	%		16	%		-15	%		9	%
Other		-17	%		-13	%		134	%		9	%
Total		-18	%		18	%		33	%		-4	%

Ericsson First Quarter Report 2012, April 25 2012 28

PROVISIONS

	2011								2012
Isolated quarters, SEK million	Q1		Q2		Q3		Q4		Q1
Opening balance		9,744		9,529		9,335		8,065		6,265
Additions		1,304		2,032		633		838		1,003
Utilization/Cash out		-1,091		-1,908		-1,464		-1,524		-980
Of which restructuring		-762		-1,220		-747		-494		-401
Reversal of excess amounts		-88		-451		-556		-824		-370
Reclassification, translation difference and other		-340		133		117		-290		12
Closing balance		9,529		9,335		8,065		6,265		5,930
	2011								2012
Year to date, SEK million	Jan - Mar		Jan - Jun		Jan - Sep		Jan - Dec		Jan - Mar
Opening balance		9,744		9,744		9,744		9,744		6,265
Additions		1,304		3,336		3,969		4,807		1,003
Utilization/Cash out		-1,091		-2,999		-4,463		-5,987		-980
Of which restructuring		-762		-1,982		-2,729		-3,223		-401
Reversal of excess amounts		-88		-539		-1,095		-1,919		-370
Reclassification, translation difference and other		-340		-207		-90		-380		12
Closing balance		9,529		9,335		8,065		6,265		5,930

NUMBER OF EMPLOYEES

	2011								2012
End of period	Mar 31		Jun 30		Sep 30		Dec 31		Mar 31
North America		13,531		14,553		14,782		14,801		16,281
Latin America		7,394		9,875		10,315		11,191		11,538
Northern Europe & Central Asia1)		21,339		21,451		21,083		20,987		21,341
Western & Central Europe		10,629		10,518		10,601		10,806		10,900
Mediterranean		10,907		11,069		11,521		11,645		11,858
Middle East		4,057		4,160		4,304		4,336		4,361
Sub Saharan Africa		1,644		1,637		1,891		2,283		2,317
India		7,448		8,563		9,672		11,535		12,567
China & North East Asia		10,111		11,601		12,313		12,567		13,016
South East Asia & Oceania		4,486		4,502		4,408		4,374		4,372
Total		91,546		97,929		100,890		104,525		108,551
1)        Of which Sweden		17,771		17,930		17,588		17,500		17,767

INFORMATION ON INVESTMENTS IN ASSETS SUBJECT TO DEPRECIATION, AMORTIZATION, IMPAIRMENT AND WRITE-DOWNS

	2011									2012
Isolated quarters, SEK million	Q1		Q2		Q3			Q4		Q1
Additions
Property, plant and equipment		980		1,196		1,294			1,524		1,648
Capitalized development expenses		269		429		257			560		251
IPR, brands and other intangible assets		359		29		488			97		5,570
Total		1,608		1,654		2,039			2,181		7,469
Depreciation, amortization and impairment losses
Property, plant and equipment		841		821		827	��		1,057		914
Capitalized development expenses		232		240		263			267		245
IPR, brands and other intangible assets, etc.		1,136		1,111		1,137			1,104		1,156
Total		2,209		2,172		2,227			2,428		2,315

Ericsson First Quarter Report 2012, April 25 2012 29

OTHER INFORMATION

	Jan - Mar		Jan - Dec
	2011		2012		2011
Number of shares and earnings per share
Number of shares, end of period (million)		3,273		3,273		3,273
Of which class A-shares (million)		262		262		262
Of which class B-shares (million)		3,011		3,011		3,011
Number of treasury shares, end of period (million)		70		60		63
Number of shares outstanding, basic, end of period (million)		3,203		3,213		3,211
Numbers of shares outstanding, diluted, end of period (million)		3,230		3,242		3,238
Average number of treasury shares (million)		71		61		68
Average number of shares outstanding, basic (million)		3,202		3,212		3,206
Average number of shares outstanding, diluted (million)1)		3,229		3,241		3,233
Earnings per share, basic (SEK)		1.28		2.79		3.80
Earnings per share, diluted (SEK)1)		1.27		2.76		3.77
Earnings per share (Non-IFRS), diluted (SEK)2)		1.52		3.01		4.72
Earnings per share (Non-IFRS, excluding restructuring), diluted (SEK)2)		1.61		3.14		5.54

¹⁾  Potential ordinary shares are not considered when their conversion to ordinary shares would increase earnings per share.

²⁾  Excluding amortizations and write-downs of acquired intangibles.

Ratios
Days sales outstanding	101		104		91
Inventory turnover days	87		88		78
Payable days	70		64		62
Equity ratio (%)	53.1	%	54.3	%	51.8	%
Return on equity (%)	11.3	%	24.4	%	8.5	%
Return on capital employed (%)	13.4	%	19.8	%	11.3	%
Capital turnover (times)	1.2		1.1		1.2
Cash conversion %, end of period	-46.4	%	17.1	%	39.6	%
Payment readiness, end of period	90,931		82,657		86,570
Payment readiness, as percentage of sales	42.9	%	40.5	%	38.1	%
Exchange rates used in the consolidation
SEK/EUR - average rate	8.90		8.86		9.02
- closing rate	8.93		8.84		8.92
SEK/USD - average rate	6.48		6.70		6.48
- closing rate	6.28		6.63		6.90
Other
Regional inventory, end of period,	21,090		20,987		19,921
Export sales from Sweden	34,044		27,194		116,507

ERICSSON PLANNING ASSUMPTIONS FOR YEAR 2012

Research and development expenses

We estimate R&D expenses for the full year 2012 to be at around SEK 29-31 b. The estimate includes amortizations/write-downs of intangible assets related to major acquisitions previously made. However, currency effects may cause this to change.

Capital expenditures

Excluding acquisitions, the capital expenditures in relation to sales are not expected to be significantly different in 2012, remaining at roughly two percent of sales.

Utilization of provisions

The expected utilization of provisions for year 2012 is stated in the Annual Report 2011.

Ericsson First Quarter Report 2012, April 25 2012 30

RESTRUCTURING CHARGES BY FUNCTION

	2011								2012
Isolated quarters, SEK million	Q1		Q2		Q3		Q4		Q1
Cost of sales		-185		-257		-283		-506		-496
Research and development expenses		-180		-208		-115		-58		-19
Selling and administrative expenses		-8		-1,236		22		-170		-54
Subtotal Ericsson excluding Sony Ericsson and ST-Ericsson		-373		-1,701		-376		-734		-569
Share in Sony Ericsson charges		—		—		—		-419		—
Share in ST-Ericsson charges		-15		-77		-17		-31		-30
Subtotal Sony Ericsson and ST-Ericsson		-15		-77		-17		-450		-30
Total		-388		-1,778		-393		-1,184		-599
	2011								2012
Year to date, SEK million	Jan - Mar		Jan - Jun		Jan - Sep		Jan - Dec		Jan - Mar
Cost of sales		-185		-442		-725		-1,231		-496
Research and development expenses		-180		-388		-503		-561		-19
Selling and administrative expenses		-8		-1,244		-1,222		-1,392		-54
Subtotal Ericsson excluding Sony Ericsson and ST-Ericsson		-373		-2,074		-2,450		-3,184		-569
Share in Sony Ericsson charges		—		—		—		-419		—
Share in ST-Ericsson charges		-15		-92		-109		-140		-30
Subtotal Sony Ericsson and ST-Ericsson		-15		-92		-109		-559		-30
Total		-388		-2,166		-2,559		-3,743		-599
RESTRUCTURING CHARGES BY SEGMENT
	2011								2012
Isolated quarters, SEK million	Q1		Q2		Q3		Q4		Q1
Networks		-205		-1,039		-121		-235		-87
Global Services		-166		-487		-254		-456		-473
Of which Professional Services		-145		-361		-225		-264		-358
Of which Network Rollout		-21		-126		-29		-192		-115
Support Solutions		-2		-119		-6		-16		-9
Unallocated		—		-56		5		-27		—
Subtotal Ericsson excluding Sony Ericsson and ST-Ericsson		-373		-1,701		-376		-734		-569
Sony Ericsson		—		—		—		-419		—
ST-Ericsson		-15		-77		-17		-31		-30
Subtotal Sony Ericsson and ST-Ericsson		-15		-77		-17		-450		-30
Total		-388		-1,778		-393		-1,184		-599
	2011								2012
Year to date, SEK million	Jan - Mar		Jan - Jun		Jan - Sep		Jan - Dec		Jan - Mar
Networks		-205		-1,244		-1,365		-1,600		-87
Global Services		-166		-653		-907		-1,363		-473
Of which Professional Services		-145		-506		-731		-995		-358
Of which Network Rollout		-21		-147		-176		-368		-115
Support Solutions		-2		-121		-127		-143		-9
Unallocated		—		-56		-51		-78		—
Subtotal Ericsson excluding Sony Ericsson and ST-Ericsson		-373		-2,074		-2,450		-3,184		-569
Sony Ericsson		—		—		—		-419		—
ST-Ericsson		-15		-92		-109		-140		-30
Subtotal Sony Ericsson and ST-Ericsson		-15		-92		-109		-559		-30
Total		-388		-2,166		-2,559		-3,743		-599

Ericsson First Quarter Report 2012, April 25 2012 31

ACQUISITION OF TELCORDIA

On January 12, 2012 Ericsson announced the closing of the acquisition of all the shares in Telcordia, a global leader in the development of software and services for OSS/BSS, for USD 1.15 billion in an all cash transaction, on a cash and debt-free basis. The total purchase has been allocated to assets acquired and liabilities assumed based on a preliminary assessment of the fair values.

Approximately 2,600 skilled employees have joined Ericsson. This acquisition consolidates Ericsson’s position as a leading player in the operations support systems/business support systems (OSS/BSS) market with a key position in service fulfillment, assurance, network optimization and real-time charging.

PRELIMINARY ALLOCATION OF PURCHASE CONSIDERATION	SEK b.
Cash		8.7	1)
Total consideration		8.7
Net assets acquired
Cash and cash equivalents		0.9
Property, plant and equipment		0.3
Intangible assets		5.5
Other current assets and liabilities, net		-1.1
Total identifiable net assets		5.6
Goodwill		3.1

¹⁾  The cash transaction includes payment of external loan of SEK 6.2 b. and investment in subsidiary of SEK 2.5 b.

Ericsson First Quarter Report 2012, April 25 2012 32

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

TELEFONAKTIEBOLAGET LM ERICSSON (publ)
By:	/S/    NINAMACPHERSON
	Nina Macpherson
	Senior Vice President and
	General Counsel
By:	/S/    HELENANORRMAN
	Helena Norrman
	Senior Vice President
	Corporate Communications

Date:April 25, 2012