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

July 18, 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

THIS REPORT ON FORM 6-K SHALL BE DEEMED TO BE INCORPORATED BY REFERENCE IN THE REGISTRATION STATEMENT ON FORM F-3 (NO. 333-180880) OF TELEFONAKTIEBOLAGET LM ERICSSON (PUBL.) AND TO BE A PART THEREOF FROM THE DATE ON WHICH THIS REPORT IS FURNISHED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED.

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:July 18, 2012

This report on Form 6-K shall be deemed to be incorporated by reference in the registration statement on Form F-3 (No. 333-180880) of Telefonaktiebolaget LM Ericsson (publ.) and to be a part thereof from the date on which this report is furnished, to the extent not superseded by documents or reports subsequently filed or furnished.

Ericsson SECOND QUARTER report ADJUSTED for registration statement on Form F-3 (No. 333.180880) July 18, 2012

• Sales increased 1% YoY and showed a good performance QoQ, +9%.

• Networks sales decreased YoY due to the expected decline in CDMA equipment sales as well as weaker sales in China and Russia.

• Global Services and Support Solutions showed strong performance YoY and QoQ.

• The underlying business mix, with higher share of coverage projects than capacity projects, was unchanged in the quarter and is expected to prevail short-term. The negative gross margin impact from the network modernization projects in Europe will start to gradually decline end 2012.

• Cash flow from operations SEK -1.4 b. impacted by high working capital mainly due to late invoicing.

• Net income SEK 1.2 b., down from SEK 3.2 b. YoY, impacted by lower profitability in Network and increased loss in ST-Ericsson.

• EPS diluted SEK 0.34 (0.96).

SEK b.	Q2 2012			Q2 2011			YoY Change			Q1 2012			QoQ Change			Six m. 2012			Six m. 2011
Net sales		55.3			54.8			1	%		51.0			9	%		106.3			107.7
Of which Networks		27.8			33.4			-17	%		27.3			2	%		55.1			66.6
Of which Global Services		24.1			19.0			26	%		20.6			17	%		44.7			36.5
Of which Support Solutions		3.5			2.4			47	%		3.0			15	%		6.5			4.7
Gross margin		32.0	%		37.8	%		—			33.3	%		—			32.6	%		38.1	%
Operating income excl JVs		3.3			5.0			-35	%		10.5			—			13.8			11.3
Operating margin excl JVs		5.9	%		9.2	%		—			20.6	%		—			13.0	%		10.5	%
Of which Networks		5	%		14	%		—			6	%		—			5	%		16	%
Of which Global Services		6	%		5	%		—			6	%		—			6	%		6	%
Of which Support Solutions		12	%		-11	%		—			-1	%		—			6	%		-13	%
Operating income incl JVs		2.1			4.3			-51	%		9.1			—			11.2			10.1
Income after financial items		1.8			4.6			—			9.1			—			10.8			10.4
Net income		1.2			3.2			-63	%		8.8			—			10.0			7.3
EPS diluted, SEK		0.34			0.96			-65	%		2.76			-88	%		3.10			2.23
Cash flow from operations		-1.4			5.8			—			0.7			—			-0.6			2.9

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

COMMENTS FROM HANS VESTBERG, PRESIDENT AND CEO

“In the quarter, demand for Global Services and Support Solutions was strong, while Networks sales decreased YoY mainly due to the expected decline in CDMA equipment sales as well as lower business activity in China, including weaker sales of GSM and lower 3G sales in Russia,” says Hans Vestberg, President and CEO of Ericsson (NASDAQ:ERIC). “In Global Services all areas showed good growth in the quarter due to operators’ focus on operational efficiency and high project activities. The strong development for Support Solutions was driven by billing systems and TV solutions. Global Services and Support Solutions together represented about half of the Group’s revenues. The growing Global Services business has a dilutive impact on gross margin.

1

NET SALES, SEK b.

OPERATING INCOME INCL. JVs, SEK b.

* excl SEK 7.7 b. gain from Sony Ericson divestment

NET INCOME, SEK b.

* excl SEK 7.7 b. gain from Sony Ericson divestment

CASH FLOW FROM OPERATIONS, SEK b.

We continue to stay close to our customers to monitor the impacts of macroeconomic development and political uncertainty in certain regions on their investments. In customer conversations it is clear that the fundamental drivers for increased data traffic are unchanged. Today there are more than 700 million smartphone subscriptions and according to our estimates this number will increase to three billion in 2017. Based on these drivers, we see an increasing focus from our customers on network performance and quality of service. This will require continuous operator investments in hardware, software and services.

Our joint venture ST-Ericsson is still in a challenging situation due to a significant drop in sales of new products to one of the largest customers and continued decline in legacy products. The company continues to focus on securing the successful execution and delivery of its NovaThor ModAp platforms and Thor modems to customers while executing on company transformation aiming at lowering its break-even point.

In 2010 we made a conscious decision to gain market share and increase technology and services leadership, well aware of the short-term profitability pressure. Our focus is now on translating these gains into sustainable profitable growth,” concludes Vestberg.

Financial Highlights

INCOME STATEMENT AND CASH FLOW

Sales in the quarter increased 1% YoY and 9% QoQ. The acquired Telcordia operation added sales of SEK 1.1 b. in the quarter, split 50/50 between segments Global Services and Support Solutions.

Networks sales decreased -17% YoY primarily due to the expected decline in CDMA equipment sales as well as weaker development for GSM sales in China and slower operator investments in Russia. Networks sales increased 2% QoQ. CDMA equipment sales declined close to -50% YoY to SEK 2 b. and are expected to continue its rapid decline in H212.

Global Services continued to show strong momentum with growth of 26% YoY and 17% QoQ and all areas grew. Global Services represented 44% (35%) of total sales in the quarter compared to 40% in Q112. Support Solutions sales were strong with 47% growth YoY and 15% QoQ driven by strong demand for billing systems and TV solutions. Both Global Services and Support Solutions were positively impacted by the added sales from the acquired Telcordia.

Ericsson restructuring charges amounted to SEK 0.6 (1.7) b., mainly related to execution of the service delivery strategy through transformation from local to global resource centers. As previously communicated, restructuring charges are estimated to approximately SEK 4 b. for the FY12.

Gross margin was down YoY to 32.0% (37.8%), and from 33.3% QoQ. The YoY decrease is due to the increased Global Services share as well as a higher proportion of coverage projects and network modernization projects in Europe. Approximately half of the YoY gross margin percentage decline is related to the increased services mix. The QoQ gross margin reduction is due to a higher Global Services share and lower sales of mobile broadband capacity than in Q112.

The underlying business mix, with higher share of coverage projects, was unchanged in the quarter and is expected to prevail short-term. The negative gross margin impact from the network modernization projects in Europe will start to gradually decline end 2012.

Ericsson Second Quarter Report 2012 2

The modernization of networks in Europe became an opportunity for us mid-2010 when operators in Europe started to evaluate potential swaps of older 2G and 3G equipment to new multi-standard radio equipment. Ericsson, who had lost out on market share in the 3G race compared to its strong 2G position, identified this as an opportunity to regain footprint. Competition for new footprint is always tough and a strategic decision was taken to accept short-term pressure on margins to increase market share. As a result, market share has increased and the Company has restored its leading market position in Europe. Average project duration for these modernization projects are 18-24 months and the margin effects will start to gradually decline late 2012. In Q411, all projects were up to full speed.

Total operating expenses amounted to SEK 15.0 (15.8) b. R&D expenses amounted to SEK 8.1 (8.1) b. and increased slightly QoQ due to restructuring. Full year R&D expenses is now expected to be SEK 30-32 b. compared to previous estimate of SEK 29-31 b. The increase is due to selective investments in key radio technology areas to extend technology leadership and FX. Selling and general administrative expenses (SG&A) amounted to SEK 6.9 (7.7) b. SG&A is down -8% YTD, excluding restructuring charges and the impact from the acquisition of Telcordia. In Q211, SG&A was impacted by restructuring charges of SEK 1.2 b. vs. restructuring charges of SEK 0.1 b. in Q212.

Other operating income and expenses was SEK 0.5 (0.2) b. and decreased SEK -7.2 b. QoQ due to the gain of SEK 7.7 b. from the divestment of Sony Ericsson that was reported in Q112. The SEK 0.3 b. in segment Sony Ericsson relates to a resolved dispute from a litigation process with a third party.

Operating income, excluding JVs, decreased to SEK 3.3 (5.0) b. due to lower profitability in Networks but with a positive impact from lower restructuring costs. Operating margin was 5.9% (9.2%) compared to 5.5% (excl. gain from divestment of Sony Ericsson) in Q112.

Ericsson’s share in ST-Ericsson’s income before tax was SEK -1.3 (-0.7) b.

Financial net amounted to SEK -0.3 (0.3) b. and decreased QoQ from SEK 0.0 b. mainly related to negative currency exchange revaluation effects.

Net income decreased to SEK 1.2 (3.2) b. due to lower profitability in Networks and increased loss in ST-Ericsson.

EPS diluted was SEK 0.34 (0.96). Cash flow from operations was negative SEK -1.4 (5.8) b., mainly due to late invoicing in the quarter. Cash outlays for restructuring amounted to SEK 0.3 (1.2) b. Cash outlays of SEK 1.0 b. remain to be made from the restructuring provision.

Ericsson Second Quarter Report 2012 3

DAYS SALES OUTSTANDING

INVENTORY DAYS

PAYABLE DAYS

BALANCE SHEET AND OTHER PERFORMANCE INDICATORS

Trade receivables increased QoQ to SEK 67.3 (60.7) b., reflecting changes in FX and late invoicing in the quarter. As a result, days sales outstanding (DSO) increased from 104 to 111 days QoQ due to the increase in trade receivables and change in FX.

Inventory increased QoQ to SEK 33.1 (32.5) b. Inventory turnover days decreased from 88 to 84 days.

During the quarter, Ericsson has performed refinancing activities to extend the average debt maturity profile and to further diversify funding sources:

• Issue of a USD denominated 1 b. 10-year bond in order to refinance debt maturing in 2012 to 2014 and to diversify the funding resources.

• Repurchase of EUR 441 m. related to the 2013 and 2014 EMTN bonds in order to reduce gross debt and optimize net interest.

• During the quarter, two SEK denominated bonds with a total of SEK 3 b. were repaid at maturity.

Cash, cash equivalents and short-term investments amounted to SEK 66.4 (75.6) b. Capex investments amounted to SEK 1.6 (1.0) b.

During the quarter, approximately SEK 0.9 b. of provisions was utilized, of which SEK 0.3 b. related to restructuring. Additions of SEK 0.6 b. were made, of which SEK 0.2 b. related to restructuring. Reversals of SEK 0.5 b. were made.

Total number of employees at the end of the quarter decreased to 108,095 (108,551). The reduction is mainly related to efficiency programs in service delivery and within sales and administration.

Ericsson Second Quarter Report 2012 4

SEGMENT SALES, SEK b.

NETWORKS QUARTERLY SALES, SEK b.

Segment Results

NETWORKS

SEK b.	Q2 2012			Q2 2011			YoY Change			Q1 2012			QoQ Change			Six m. 2012			Six m. 2011
Network sales		27.8			33.4			-17	%		27.3			2	%		55.1			66.6
Operating margin		5	%		14	%		—			6	%		—			5	%		16	%

CDMA equipment sales decreased -50% YoY to SEK 2 b. in the quarter. CDMA equipment sales are expected to continue its rapid decline in H212. YoY sales were negatively impacted by lower business activity in China, including weaker sales of GSM as well as lower 3G sales in Russia and reduced operator investments in India.

In 2010, we acquired Nortel’s CDMA business in order to strengthen our position in North America. We were quickly established as the market leader in North America. Already at the acquisition, CDMA equipment sales were expected to decline due to the subsequent rapid shift to LTE. The CDMA acquisition has created substantial value for the company.

Ericsson has made good inroads in the converged IP Edge market with seven contracts for the Smart Services Router (SSR) signed to date.

Operating margin was negatively impacted YoY by lower volumes as well as the underlying business mix, with more coverage than capacity projects, and the European network modernization projects. The QoQ decline is also impacted by lower sales of mobile broadband capacity than in Q112.

After the initial large scale LTE rollouts in the US, Japan and Korea, we now start to see other countries following and we expect LTE deployments to commence on a broader scale also in e.g. Europe and Latin America. We have a well proven LTE solution, outperforming competition, and according to measurements end of 2011, we have a 60% market share measured in LTE volumes.

Focus is on improving profitability and leveraging the installed base. Other key priorities are to grow IP sales and secure contracts for Voice over LTE. In CDMA, the priority is to support customers’ migration to our LTE solution and excel in life cycle management.

Ericsson Second Quarter Report 2012 5

GLOBAL SERVICES QUARTERLY SALES, SEK b.

GLOBAL SERVICES

SEK b.	Q2 2012			Q2 2011			YoY Change			Q1 2012			QoQ Change			Six m. 2012			Six m. 2011
Global Services sales		24.1			19.0			26	%		20.6			17	%		44.7			36.5
Of which Professional Services		16.9			13.5			26	%		14.9			14	%		31.8			26.0
Of which Managed Services		6.5			4.7			37	%		5.7			13	%		12.2			9.6
Of which Network Rollout		7.1			5.6			28	%		5.7			24	%		12.9			10.4
Operating margin		6	%		5	%		—			6	%		—			6	%		6	%
Of which Professional Services		13	%		12	%		—			13	%		—			13	%		12	%
Of which Network Rollout		-11	%		-11	%		—			-11	%		—			-11	%		-9	%

All areas showed strong growth in the quarter and business momentum remains. The increase in Professional Services is to a large extent driven by Managed Services and Consulting & Systems Integration. The demand for Professional Services is driven by operators’ focus on increasing operational efficiency and reducing opex through transformation activities in the voice, IP and OSS/BSS domains as well as outsourcing. Also this quarter, Network Rollout sales increased YoY, driven by high volumes of network modernization in Europe and coverage projects in other regions.

Global Services operating margin increased YoY due to increased profitability in Professional Services, positively impacted by an improvement in all areas as a result of increased sales and lower restructuring charges. Network Rollout operating margin continued to be negatively impacted by the network modernization projects in Europe. The margin impact from restructuring charges was 2%-points Q212 for Global Services as well as Professional Services, compared to 3%-points in Q211.

Ericsson now supports networks with more than 2.5 billion subscribers.

Other information	Q2 2012		Q1 2012		Full year 2011
No. of signed managed services contracts		17		9		70
Of which expansions/extensions		5		4		32
No. of signed significant consulting & systems integration contracts1)		7		6		33
Number of subscribers in networks managed by Ericsson, end of period2)		> 900 m.		> 900 m.		900 m.
Of which in network operations contracts		500 m.		500 m.		500 m.
Number of Ericsson services professionals, end of period		57,000		57,000		56,000

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

2) The figure includes network operations contracts and field operation contracts.

Ericsson Second Quarter Report 2012 6

SUPPORT SOLUTIONS QUARTERLY SALES, SEK b.

SUPPORT SOLUTIONS

SEK b.	Q2 2012			Q2 2011			YoY Change			Q1 2012			QoQ Change			Six m. 2012			Six m. 2011
Support Solutions sales		3.5			2.4			47	%		3.0			15	%		6.5			4.7
Operating margin		12	%		-11	%		—			-1	%		—			6	%		-13	%

The acquired Telcordia operation added sales of SEK 0.55 b. in the quarter. The strong YoY development in the quarter is related to billing solutions in Middle East and Sub-Saharan Africa. The solid growth in TV is especially related to IPTV and compression.

Operating margins improved YoY due to increased volumes and favorable product mix. Focus continues to be on transforming the business for sustainable profit generation as well as integrating Telcordia. Support Solutions is a software business with a high fixed cost base, which makes profitability volume driven.

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

ST-ERICSSON

USD m.	Q2 2012		Q2 2011		YoY Change			Q1 2012		QoQ Change
Net sales		344		385		-11	%		290		19	%
Operating income		-309		-222		-39	%		-326		5	%
Net income		-318		-221		-44	%		-312		-2	%

ST-Ericsson’s sales increased 19% QoQ, reflecting a significant ramp-up of volumes of NovaThor platforms shipping to its major customers. The net debt at the end of the quarter was USD -1.2 b. Last quarter net debt was USD -1.0 b. ST-Ericsson is reported in US GAAP and Ericsson’s share in ST-Ericsson’s income before tax, adjusted to IFRS, was SEK -1.3 (-0.7) b. in the quarter. By the end of the quarter, ST-Ericsson had utilized USD 1.2 b. of a short-term credit facility of USD 1.4 b. granted on a 50/50 basis by the parent companies, which corresponds to an increase of USD 260 m. since Q112.

Ericsson Group balance sheet items related to its investment in ST-Ericsson (IFRS);

SEK m.	March 31, 2012		June 30, 2012
Investment in ST-Ericsson		1,982		767
Loans to ST-Ericsson		3,241		4,311
Total		5,223		5,078

Though their path to success is challenging, ST-Ericsson continues to focus on securing the successful execution and delivery of its NovaThor ModAp platforms and Thor modems to customers while executing a company transformation aiming at lowering its break-even point.

Ericsson accounts for ST- Ericsson in accordance with the equity method which means that Ericsson share of income after tax in ST-Ericsson increases or decreases the carrying investment amount.

Ericsson Second Quarter Report 2012 7

Regional Overview

	Second quarter 2012								Growth
SEK b.	Net- works		Global Services		Support Solutions		Total		YoY			QoQ
North America		6.1		6.1		0.7		13.0		5	%		2	%
Latin America		2.3		2.5		0.4		5.2		6	%		9	%
Northern Europe and Central Asia		2.1		1.2		0.1		3.4		-26	%		47	%
Western and Central Europe		1.3		2.6		0.2		4.1		-6	%		-5	%
Mediterranean		2.7		3.3		0.2		6.2		12	%		35	%
Middle East		1.6		1.8		0.3		3.7		4	%		17	%
Sub-Saharan Africa		1.6		0.9		0.3		2.8		26	%		27	%
India		0.9		0.6		0.1		1.7		-39	%		20	%
China and North East Asia		5.2		3.1		0.1		8.4		-7	%		-8	%
South East Asia and Oceania		1.9		1.6		0.1		3.7		21	%		9	%
Other		2.1		0.2		0.8		3.1		27	%		10	%
Total		27.8		24.1		3.5		55.3		1	%		9	%

In Segment Networks “Other” includes licensing revenues, sales of cables, power modules and other businesses. 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 are 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.Network sales were negatively impacted by the decline in CDMA sales, however, partly offset by the continued transition to LTE. Major wireless network expansion and transformation projects contributed to the growth in Global Services sales. The acquisition of Telcordia has generated momentum in OSS/BSS.

Latin America.The YoY increase was driven by services. Network Rollout sales increased due to project executions in Brazil, Chile and Mexico. Support Solutions increased due to Telcordia acquisition and strong sales in charging. Operators in Brazil and Mexico are preparing for LTE deployments.

Northern Europe and Central Asia.Sales of Networks decreased YoY mainly due to continued low investment levels in Russia. Solid increase in sequential sales due to continued modernization projects and the win of a WCDMA contract with pan-Russian operator Rostelecom. In the Nordics, all major operators have now launched LTE services.

Western and Central Europe.The region sees some impact from the macroeconomic environment causing cautious operator capex spending and focus on measures to improve efficiency. Most operators are looking at transformation of their OSS/BSS environments. As a result, sales of Global Services and Support Solutions represent more than 60% of the sales in the region and there is continued good momentum for managed services.

Mediterranean.Sales growth is mainly driven by network modernization projects, which drive both sales of networks and services. In Global Services, both Network Rollout and Systems Integration sales contributed to the positive development. Operators focus on mobile broadband in order to meet traffic growth, quality demands and secure network performance.

Middle East.YoY sales growth was mainly driven by sales in Global Services and Support Solutions. Political unrest is still impacting the region and operators in those countries continue to be cautious with infrastructure investments. Services grew, especially in Managed Services and Systems Integration, as operators are looking into network performance quality and operational efficiencies.

Sub-Saharan Africa.Sales increased YoY and QoQ, driven by increased investments in 2G. 2G investments are expected to level out, while 3G will increase. Mobile broadband penetration is slowly expanding from its low level of 4% today, as low cost smartphones enter the market and the internet connectivity is improving.

Ericsson Second Quarter Report 2012 8

India.Some recovery in network capex spend as operators have started focused investments in areas where data traffic is growing. YoY sales decreased due to the strong H111, when the initial 3G deployments peaked. Regulatory uncertainties continue in India.

China and North East Asia.The YoY decrease in Networks is mainly related to lower sales of GSM and generally lower business activity in China, as well as continued transition to LTE in Korea, impacting 3G sales. Services sales were driven by more turnkey projects in Japan. The product mix is rapidly changing towards more of initial LTE deployments and a larger share of services.

South East Asia and Oceania.Networks sales increased YoY in several countries, driven by 3G investments and initial LTE deployments. The QoQ increase is due to capacity investments in Indonesia and deployments in other markets. Global Services reported an increase YoY driven by network rollout and support services aligned with infrastructure investments.

Other. Licensing revenues continued to show a 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

	Q2		Q2					FULL YEAR						Ericsson forecast
	2012		2011		Change			2009		2010		2011		2012
Mobile subscriptions, billion		6.3		5.7		11	%		4.6		5.3		6.0		6.7
Net additions, million		140		150		-8	%		640		700		650		700
Mobile broadband, million1)		1,250		800		56	%		360		620		1,000		1,400
Net additions, million		110		100		15	%		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 Second Quarter Report 2012 9

Parent Company Information

Income after financial items was SEK 7.0 (4.7) b. Major changes in the Parent Company’s financial position for the six month period; decreased cash, cash equivalents and short-term investments of SEK 12.8 b., and increased current and non-current receivables from subsidiaries of SEK 10.6 b. During the quarter, the dividend payment of SEK 8.0 b., as decided by the Annual General Meeting, was made. At the end of the quarter, cash, cash equivalents and short-term investments amounted to SEK 43.3 (56.1) b. In the quarter, the Parent Company Telefonaktiebolaget LM Ericsson, borrowed USD 1.0 b. through a SEC-registered bond. Two loans of SEK 1.0 b. and SEK 2.0 b. matured in the quarter. The Parent Company also repurchased two EMTN bonds of EUR 441 m. The net change in gross debt is close to zero. By the end of the quarter, ST-Ericsson had utilized USD 619 million of a short-term credit facility.

In accordance with the conditions of the long-term variable compensation program (LTV) for Ericsson employees, 2,483,350 shares from treasury stock were sold or distributed to employees during the second quarter. The holding of treasury stock at June 30, 2012, was 89,695,956 Class B shares. During the quarter, a stock issue of SEK 0.2 b. and a subsequent repurchase was made for the share-based employee remuneration program. 31.7 million Class C shares were issued and later repurchased as treasury stock. The shares were converted into Class B shares.

Other Information

ERICSSON’S NOMINATION COMMITTEE APPOINTED

On June 27, 2012, Ericsson announced the appointment of the Nomination Committee for the Annual General Meeting 2013, in accordance with the Instruction for the Nomination Committee resolved by the Annual General Meeting 2012.

ERICSSON RESOLVES ON AN ACQUISITION OFFER FOR C-SHARES FOR LTV 2012

On May 18, 2012, Ericsson announced that, in accordance with the resolution by the Annual General Meeting 2012, the company would expand its treasury stock in order to provide shares for the Long-Term variable Remuneration Program (LTV) 2012 for employees in Ericsson.

COMPOSITION OF THE BOARD OF DIRECTORS

On May 3, 2012, Ericsson announced that in accordance with the proposal of the Nomination Committee, the Annual General Meeting resolved to re-elect Leif Johansson as Chairman of the Board of Directors and Roxanne S. Austin, Sir Peter L. Bonfield, Börje Ekholm, Ulf J Johansson, Sverker Martin-Löf, Nancy McKinstry, Anders Nyrén, Hans Vestberg, Michelangelo Volpi and Jacob Wallenberg were re-elected as members of the Board of Directors. Alexander Izosimov was elected new member of the Board of Directors. Board members appointed by the unions are Pehr Claesson, Kristina Davidsson and Karin Åberg. Deputy board members appointed by the unions are Rickard Fredriksson, Karin Lennartsson and Roger Svensson.

POST-CLOSING EVENT: CLOSING OF TECHNICOLOR ACQUISITION

On July 3, 2012 Ericsson announced the closing of the acquisition of Technicolor’s Broadcast Services Division. The acquisition brings leading broadcast customers, approximately 900 highly skilled professionals and playout services in France, UK and Netherlands. Purchase price amounted to EUR 19 million and a potential earn-out based on 2015 revenues of the Broadcast Services activity up to EUR 9 million.

Ericsson Second Quarter Report 2012 10

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 upgrades and expansions (mainly software) and new buildouts of coverage (mainly hardware);

• 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;

• Execution of the business plan and related capital need of our 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 and other events, affecting business, 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 monitor the compliance with 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, July 18, 2012

Telefonaktiebolaget LM Ericsson (publ)

Hans Vestberg, President and CEO

Date for next report: October 26, 2012

Ericsson Second Quarter Report 2012 11

BOARD ASSURANCE

The Board of Directors and the CEO certify that the financial report for the six months gives a fair view of the performance of the business, position and profit or loss of the Company and the Group, and describes the principal risks and uncertainties that the Company and the companies in the Group face.

Stockholm, July 18, 2012

Telefonaktiebolaget LM Ericsson (publ)

Org. Nr. 556016-0680

Sverker Martin-Löf Deputy chairman	Leif Johansson Chairman	Jacob Wallenberg Deputy chairman
Roxanne S. Austin Member of the board	Sir Peter L. Bonfield Member of the board	Anders Nyrén Member of the board
Börje Ekholm Member of the board	Ulf J. Johansson Member of the board	Nancy McKinstry Member of the board
Alexander Izosimov Member of the board		Michelangelo Volpi Member of the board
Pehr Claesson Member of the board	Kristina Davidsson Member of the board	Karin Åberg Member of the board
	Hans Vestberg Member of the board and President and CEO

Ericsson Second Quarter Report 2012 12

Editor’s Note

Ericsson invites media, investors and analysts to a press conference at the Ericsson Studio, Grönlandsgången 4, Stockholm, at 09.00 (CET), July 18, 2012. An analysts, investors and media conference call will begin at 14.00 (CET).

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   Åse Lindskog, Vice President, Head of Investor and Analyst Relations Phone: +46 10 719 9725 +46 730 244 872 E-mail:investor.relations@ericsson.com   Stefan Jelvin, Director, Investor Relations Phone: +46 10 714 2039 +46 709 860 227 E-mail:investor.relations@ericsson.com   Åsa Konnbjer, Director, Investor Relations Phone: +46 10 713 3928 +46 730 825 928 E-mail: investor.relations@ericsson.com   Rikard Tunedal, Director, Investor Relations Phone: +46 10 714 5400 +46 761 005 400 E-mail:investor.relations@ericsson.com MEDIA   Ola Rembe, Vice President, Head of Corporate Public & Media Relations Phone: +46 10 719 9727 +46 730 244 873 E-mail:media.relations@ericsson.com   Corporate Public & Media Relations Phone: +46 10 719 69 92 E-mail:media.relations@ericsson.com   Telefonaktiebolaget LM Ericsson (publ) Org. number: 556016-0680 Torshamnsgatan 23 SE-164 83 Stockholm Phone: +46 10 719 0000

Ericsson Second Quarter Report 2012 13

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 Second Quarter Report 2012 14

Financial Statements and Additional Information

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

Ericsson Second Quarter Report 2012 15

CONSOLIDATED INCOME STATEMENT

	Apr - Jun									Jan - Jun
SEK million	2011			2012			Change			2011			2012			Change
Net sales		54,770			55,319			1	%		107,736			106,293			-1	%
Cost of sales		-34,064			-37,611			10	%		-66,642			-71,596			7	%
Gross income		20,706			17,708			-14	%		41,094			34,697			-16	%
Gross margin (%)		37.8	%		32.0	%					38.1	%		32.6	%
Research and development expenses		-8,108			-8,097			0	%		-16,099			-16,113			0	%
Selling and administrative expenses		-7,741			-6,855			-11	%		-14,182			-13,087			-8	%
Operating expenses		-15,849			-14,952			-6	%		-30,281			-29,200			-4	%
Other operating income and expenses1)		166			530						509			8,279
Operating income before shares in earnings of JV and associated companies		5,023			3,286			-35	%		11,322			13,776			22	%
Operating margin before shares in earnings of JV and associated companies (%)		9.2	%		5.9	%					10.5	%		13.0	%
Shares in earnings of JV and associated companies		-771			-1,208			57	%		-1,239			-2,611			111	%
Operating income		4,252			2,078			-51	%		10,083			11,165			11	%
Financial income		977			618						1,279			880			-31	%
Financial expenses		-636			-924						-942			-1,197			27	%
Income after financial items		4,593			1,772			-61	%		10,420			10,848			4	%
Taxes		-1,377			-567						-3,124			-839
Net income		3,216			1,205			-63	%		7,296			10,009			37	%
Net income attributable to:
- Stockholders of the Parent Company		3,116			1,110						7,219			10,060
- Non-controlling interests		100			95						77			-51
Other information
Average number of shares, basic (million)		3,204			3,215						3,203			3,213
Earnings per share, basic (SEK)2)		0.97			0.35						2.25			3.13
Earnings per share, diluted (SEK)2)		0.96			0.34						2.23			3.10

STATEMENT OF COMPREHENSIVE INCOME

	Apr - Jun				Jan - Jun
SEK million	2011		2012		2011		2012
Net income		3,216		1,205		7,296		10,009
Other comprehensive income
Actuarial gains and losses, and the effect of the asset ceiling, related to pensions		-1,737		-1,201		-1,349		-765
Revaluation of other investments in shares and participations
Fair value remeasurement		1		1		—		1
Cash flow hedges
Gains/losses arising during the period		138		-586		1,762		199
Reclassification adjustments for gains/losses included in profit or loss		-1,198		70		-2,119		-143
Adjustments for amounts transferred to initial carrying amount of hedged items		—		—		—		92
Changes in cumulative translation adjustments		1,143		1,323		-2,274		-681
Share of other comprehensive income on JV and associated companies		128		34		-616		-18
Tax on items relating to components of other comprehensive income		666		545		444		153
Total other comprehensive income		-859		186		-4,152		-1,162
Total comprehensive income		2,357		1,391		3,144		8,847
Total comprehensive income attributable to:
Stockholders of the Parent Company		2,211		1,229		3,117		8,879
Non-controlling interests		146		162		27		-32

¹⁾  Includes gain on sale of Sony Ericsson SEK 7.7 b. in Q1 2012

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

Ericsson Second Quarter Report 2012 16

CONSOLIDATED BALANCE SHEET

	Dec 31		Mar 31		Jun 30
SEK million	2011		2012		2012
ASSETS
Non-current assets
Intangible assets
Capitalized development expenses		3,523		3,529		3,795
Goodwill		27,438		31,245		31,342
Intellectual property rights, brands and other intangible assets		13,083		17,263		17,616
Property, plant and equipment		10,788		11,268		11,435
Financial assets
Equity in JV and associated companies		5,965		3,271		2,110
Other investments in shares and participations		2,199		2,122		2,207
Customer financing, non-current		1,400		1,139		1,340
Other financial assets, non-current		4,117		5,747		4,932
Deferred tax assets		13,020		13,231		14,164
		81,533		88,815		88,941
Current assets
Inventories		33,070		32,546		33,118
Trade receivables		64,522		60,695		67,320
Customer financing, current		2,845		2,798		2,581
Other current receivables		17,837		20,333		19,337
Short-term investments1)		41,866		44,992		37,674
Cash and cash equivalents		38,676		30,638		28,707
		198,816		192,002		188,737
Total assets		280,349		280,817		277,678
EQUITY AND LIABILITIES
Equity
Stockholders’ equity		143,105		150,506		143,827
Non-controlling interest in equity of subsidiaries		2,165		1,962		1,920
		145,270		152,468		145,747
Non-current liabilities
Post-employment benefits		10,016		9,339		9,859
Provisions, non-current		280		208		205
Deferred tax liabilities		2,250		3,749		3,732
Borrowings, non-current		23,256		22,969		23,033
Other non-current liabilities		2,248		2,590		2,534
		38,050		38,855		39,363
Current liabilities
Provisions, current		5,985		5,722		5,113
Borrowings, current		7,765		6,229		7,583
Trade payables		25,309		22,283		24,410
Other current liabilities		57,970		55,260		55,462
		97,029		89,494		92,568
Total equity and liabilities		280,349		280,817		277,678
Of which interest-bearing liabilities and post-employment benefits		41,037		38,537		40,475
Of which net cash		39,505		37,093		25,906
Assets pledged as collateral		452		403		530
Contingent liabilities		609		581		518

¹⁾ Including loan to ST-Ericsson of SEK 4,311 million as of June 30, 2012

(SEK 3,241 million as of March 31, 2012, SEK 2,759 million as of December 31, 2011)

Ericsson Second Quarter Report 2012 17

CONSOLIDATED STATEMENT OF CASH FLOWS

	Apr - Jun				Jan - Jun				Jan - Dec
SEK million	2011		2012		2011		2012		2011
Operating activities
Net income		3,216		1,205		7,296		10,009		12,569
Adjustments to reconcile net income to cash
Taxes		-29		-1,185		692		-2,303		1,994
Earnings/dividends in JV and associated companies		783		1,193		1,235		2,483		3,710
Depreciation, amortization and impairment losses		2,172		2,401		4,381		4,716		9,036
Other		-1,107		-466		-2,308		-7,488		-2,127
		5,035		3,148		11,296		7,417		25,182
Changes in operating net assets
Inventories		-2,370		43		-5,832		-16		-3,243
Customer financing, current and non-current		195		0		391		282		74
Trade receivables		2,114		-5,427		504		-1,705		-1,700
Trade payables		-834		1,717		-1,089		-996		-1,648
Provisions and post-employment benefits		-485		-353		-1,237		-2,124		-5,695
Other operating assets and liabilities, net		2,126		-492		-1,158		-3,491		-2,988
		746		-4,512		-8,421		-8,050		-15,200
Cash flow from operating activities		5,781		-1,364		2,875		-633		9,982
Investing activities
Investments in property, plant and equipment		-1,196		-994		-2,176		-2,642		-4,994
Sales of property, plant and equipment		58		-10		155		299		386
Acquisitions/divestments of subsidiaries and other operations, net1)		-507		-110		-962		-1,840		-3,128
Product development		-429		-525		-698		-776		-1,515
Other investing activities		-100		-520		79		-325		-900
Short-term investments		3,196		8,133		6,902		4,134		14,692
Cash flow from investing activities		1,022	��	5,974		3,300		-1,150		4,541
Cash flow before financing activities		6,803		4,610		6,175		-1,783		14,523
Financing activities
Dividends paid		-7,209		-8,252		-7,209		-8,252		-7,455
Other financing activities		-1,097		1,112		143		-206		961
Cash flow from financing activities		-8,306		-7,140		-7,066		-8,458		-6,494
Effect of exchange rate changes on cash		211		599		-509		272		-217
Net change in cash		-1,292		-1,931		-1,400		-9,969		7,812
Cash and cash equivalents, beginning of period		30,756		30,638		30,864		38,676		30,864
Cash and cash equivalents, end of period		29,464		28,707		29,464		28,707		38,676

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

Ericsson Second Quarter Report 2012 18

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

	Jan - Jun		Jan - Jun		Jan - Dec
SEK million	2011		2012		2011
Opening balance		146,785		145,270		146,785
Total comprehensive income		3,144		8,847		5,506
Stock issue		—		159		—
Sale/Repurchase of own shares		45		-126		92
Stock purchase		213		218		413
Dividends paid		-7,209		-8,252		-7,455
Transactions with non-controlling interests		-88		-369		-71
Closing balance		142,890		145,747		145,270

Ericsson Second Quarter Report 2012 19

CONSOLIDATED INCOME STATEMENT - ISOLATED QUARTERS

	2011												2012
Isolated quarters, SEK million	Q1			Q2			Q3			Q4			Q1			Q2
Net sales		52,966			54,770			55,518			63,667			50,974			55,319
Cost of sales		-32,578			-34,064			-36,095			-44,463			-33,985			-37,611
Gross income		20,388			20,706			19,423			19,204			16,989			17,708
Gross margin (%)		38.5	%		37.8	%		35.0	%		30.2	%		33.3	%		32.0	%
Research and development expenses		-7,991			-8,108			-7,824			-8,715			-8,016			-8,097
Selling and administrative expenses		-6,441			-7,741			-5,664			-6,837			-6,232			-6,855
Operating expenses		-14,432			-15,849			-13,488			-15,552			-14,248			-14,952
Other operating income and expenses1)		343			166			366			403			7,749			530
Operating income before shares in earnings of JV and associated companies		6,299			5,023			6,301			4,055			10,490			3,286
Operating margin before shares in earnings of JV and associated companies (%)		11.9	%		9.2	%		11.3	%		6.4	%		20.6	%		5.9	%
Shares in earnings of JV and associated companies		-468			-771			-640			-1,899			-1,403			-1,208
Operating income		5,831			4,252			5,661			2,156			9,087			2,078
Financial income		302			977			1,198			405			262			618
Financial expenses		-306			-636			-987			-732			-273			-924
Income after financial items		5,827			4,593			5,872			1,829			9,076			1,772
Taxes		-1,747			-1,377			-2,090			-338			-272			-567
Net income		4,080			3,216			3,782			1,491			8,804			1,205
Net income attributable to:
- Stockholders of the Parent Company		4,103			3,116			3,821			1,154			8,950			1,110
- Non-controlling interests		-23			100			-39			337			-146			95
Other information
Average number of shares, basic (million)		3,202			3,204			3,207			3,209			3,212			3,215
Earnings per share, basic (SEK)2)		1.28			0.97			1.19			0.36			2.79			0.35
Earnings per share, diluted (SEK)2)		1.27			0.96			1.18			0.36			2.76			0.34

¹⁾ Includes gain on sale of Sony Ericsson SEK 7.7 b. in Q1 2012

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

Ericsson Second Quarter Report 2012 20

CONSOLIDATED STATEMENT OF CASH FLOWS - ISOLATED QUARTERS

	2011								2012
Isolated quarters, SEK million	Q1		Q2		Q3		Q4		Q1		Q2
Operating activities
Net income		4,080		3,216		3,782		1,491		8,804		1,205
Adjustments to reconcile net income to cash
Taxes		721		-29		550		752		-1,118		-1,185
Earnings/dividends in JV and associated companies		452		783		658		1,817		1,290		1,193
Depreciation, amortization and impairment losses		2,209		2,172		2,227		2,428		2,315		2,401
Other		-1,201		-1,107		-291		472		-7,022		-466
		6,261		5,035		6,926		6,960		4,269		3,148
Changes in operating net assets
Inventories		-3,462		-2,370		-2,619		5,208		-59		43
Customer financing, current and non-current		196		195		-607		290		282		0
Trade receivables		-1,610		2,114		-2,769		565		3,722		-5,427
Trade payables		-255		-834		-805		246		-2,713		1,717
Provisions and post-employment benefits		-752		-485		-2,180		-2,278		-1,771		-353
Other operating assets and liabilities, net		-3,284		2,126		3,694		-5,524		-2,999		-492
		-9,167		746		-5,286		-1,493		-3,538		-4,512
Cash flow from operating activities		-2,906		5,781		1,640		5,467		731		-1,364
Investing activities
Investments in property, plant and equipment		-980		-1,196		-1,294		-1,524		-1,648		-994
Sales of property, plant and equipment		97		58		59		172		309		-10
Acquisitions/divestments of subsidiaries and other operations, net1)		-455		-507		-1,931		-235		-1,730		-110
Product development		-269		-429		-257		-560		-251		-525
Other investing activities		179		-100		-769		-210		195		-520
Short-term investments		3,706		3,196		9,323		-1,533		-3,999		8,133
Cash flow from investing activities		2,278		1,022		5,131		-3,890		-7,124		5,974
Cash flow before financing activities		-628		6,803		6,771		1,577		-6,393		4,610
Financing activities
Dividends paid		—		-7,209		-241		-5		—		-8,252
Other financing activities		1,240		-1,097		-10		828		-1,318		1,112
Cash flow from financing activities		1,240		-8,306		-251		823		-1,318		-7,140
Effect of exchange rate changes on cash		-720		211		278		14		-327		599
Net change in cash		-108		-1,292		6,798		2,414		-8,038		-1,931
Cash and cash equivalents, beginning of period		30,864		30,756		29,464		36,262		38,676		30,638
Cash and cash equivalents, end of period		30,756		29,464		36,262		38,676		30,638		28,707

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

Ericsson Second Quarter Report 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: 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 June 30, 2012 and IFRS as endorsed by the EU, except for IAS 12 above.

Ericsson Second Quarter Report 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			Q2
Networks		33,249			33,360			32,506			33,280			27,314			27,766
Global Services		17,435			19,036			20,438			26,975			20,631			24,074
Of which Professional Services		12,571			13,463			14,719			18,081			14,884			16,947
Of which Managed Services		4,924			4,724			5,304			6,046			5,708			6,468
Of which Network Rollout		4,864			5,573			5,719			8,894			5,747			7,127
Support Solutions		2,282			2,374			2,574			3,412			3,029			3,479
Total		52,966			54,770			55,518			63,667			50,974			55,319
	2011												2012
Sequential change, percent	Q1			Q2			Q3			Q4			Q1			Q2
Networks		-9	%		0	%		-3	%		2	%		-18	%		2	%
Global Services		-24	%		9	%		7	%		32	%		-24	%		17	%
Of which Professional Services		-25	%		7	%		9	%		23	%		-18	%		14	%
Of which Managed Services		-8	%		-4	%		12	%		14	%		-6	%		13	%
Of which Network Rollout		-21	%		15	%		3	%		56	%		-35	%		24	%
Support Solutions		-34	%		4	%		8	%		33	%		-11	%		15	%
Total		-16	%		3	%		1	%		15	%		-20	%		9	%
	2011												2012
Year over year change, percent	Q1			Q2			Q3			Q4			Q1			Q2
Networks		35	%		31	%		25	%		-9	%		-18	%		-17	%
Global Services		-4	%		-5	%		7	%		18	%		18	%		26	%
Of which Professional Services		-5	%		-9	%		7	%		8	%		18	%		26	%
Of which Managed Services		1	%		-16	%		1	%		13	%		16	%		37	%
Of which Network Rollout		0	%		6	%		7	%		44	%		18	%		28	%
Support Solutions		-1	%		-2	%		11	%		-2	%		33	%		47	%
Total		17	%		14	%		17	%		1	%		-4	%		1	%
	2011												2012
Year to date, SEK million	Jan - Mar			Jan - Jun			Jan - Sep			Jan - Dec			Jan - Mar			Jan - Jun
Networks		33,249			66,609			99,115			132,395			27,314			55,080
Global Services		17,435			36,471			56,909			83,884			20,631			44,705
Of which Professional Services		12,571			26,034			40,753			58,834			14,884			31,830
Of which Managed Services		4,924			9,648			14,952			20,998			5,708			12,176
Of which Network Rollout		4,864			10,437			16,156			25,050			5,747			12,875
Support Solutions		2,282			4,656			7,230			10,642			3,029			6,508
Total		52,966			107,736			163,254			226,921			50,974			106,293
Year to date,	2011												2012
year over year change, percent	Jan - Mar			Jan - Jun			Jan - Sep			Jan - Dec			Jan - Mar			Jan - Jun
Networks		35	%		33	%		30	%		17	%		-18	%		-17	%
Global Services		-4	%		-4	%		-1	%		5	%		18	%		23	%
Of which Professional Services		-5	%		-7	%		-3	%		1	%		18	%		22	%
Of which Managed Services		1	%		-8	%		-5	%		-1	%		16	%		26	%
Of which Network Rollout		0	%		3	%		5	%		16	%		18	%		23	%
Support Solutions		-1	%		-2	%		3	%		1	%		33	%		40	%
Total		17	%		16	%		16	%		12	%		-4	%		-1	%

Ericsson Second Quarter Report 2012 23

OPERATING INCOME BY SEGMENT BY QUARTER

	2011												2012
Isolated quarters, SEK million	Q1			Q2			Q3			Q4			Q1			Q2
Networks		5,744			4,599			4,277			2,675			1,649			1,255
Global Services		1,146			1,030			1,757			1,611			1,267			1,362
Of which Professional Services		1,486			1,661			2,023			2,498			1,908			2,142
Of which Network Rollout		-340			-631			-266			-887			-641			-780
Support Solutions		-338			-267			90			11			-28			420
Unallocated 1)		-228			-204			164			-233			-97			-43
Subtotal Segments excluding Sony Ericsson and ST-Ericsson		6,324			5,158			6,288			4,064			2,791			2,994
Sony Ericsson2)		71			-208			75			-1,137			7,691			347
ST-Ericsson		-564			-698			-702			-771			-1,395			-1,263
Subtotal Sony Ericsson and ST-Ericsson		-493			-906			-627			-1,908			6,296			-916
Total		5,831			4,252			5,661			2,156			9,087			2,078
	2011												2012
Year to date, SEK million	Jan - Mar			Jan - Jun			Jan - Sep			Jan - Dec			Jan - Mar			Jan-Jun
Networks		5,744			10,343			14,620			17,295			1,649			2,904
Global Services		1,146			2,176			3,933			5,544			1,267			2,629
Of which Professional Services		1,486			3,147			5,170			7,668			1,908			4,050
Of which Network Rollout		-340			-971			-1,237			-2,124			-641			-1,421
Support Solutions		-338			-605			-515			-504			-28			392
Unallocated 1)		-228			-432			-268			-501			-97			-140
Subtotal Segments excluding Sony Ericsson and ST-Ericsson		6,324			11,482			17,770			21,834			2,791			5,785
Sony Ericsson2)		71			-137			-62			-1,199			7,691			8,038
ST-Ericsson		-564			-1,262			-1,964			-2,735			-1,395			-2,658
Subtotal Sony Ericsson and ST-Ericsson		-493			-1,399			-2,026			-3,934			6,296			5,380
Total		5,831			10,083			15,744			17,900			9,087			11,165
OPERATING MARGIN BY SEGMENT BY QUARTER
	2011												2012
As percentage of net sales, isolated quarters	Q1			Q2			Q3			Q4			Q1			Q2
Networks		17	%		14	%		13	%		8	%		6	%		5	%
Global Services		7	%		5	%		9	%		6	%		6	%		6	%
Of which Professional Services		12	%		12	%		14	%		14	%		13	%		13	%
Of which Network Rollout		-7	%		-11	%		-5	%		-10	%		-11	%		-11	%
Support Solutions		-15	%		-11	%		3	%		0	%		-1	%		12	%
Subtotal excluding Sony Ericsson and ST-Ericsson		12	%		9	%		11	%		6	%		5	%		5	%
	2011												2012
As percentage of net sales, Year to date	Jan - Mar			Jan - Jun			Jan - Sep			Jan - Dec			Jan - Mar			Jan - Jun
Networks		17	%		16	%		15	%		13	%		6	%		5	%
Global Services		7	%		6	%		7	%		7	%		6	%		6	%
Of which Professional Services		12	%		12	%		13	%		13	%		13	%		13	%
Of which Network Rollout		-7	%		-9	%		-8	%		-8	%		-11	%		-11	%
Support Solutions		-15	%		-13	%		-7	%		-5	%		-1	%		6	%
Subtotal excluding Sony Ericsson and ST-Ericsson		12	%		11	%		11	%		10	%		5	%		5	%

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

²⁾  Includes gain on sale of Sony Ericsson SEK 7.7 b. in Q1 2012

Ericsson Second Quarter Report 2012 24

NET SALES BY REGION BY QUARTER

	2011												2012
Isolated quarters, SEK million	Q1			Q2			Q3			Q4			Q1			Q2
North America		13,162			12,324			12,096			11,203			12,775			12,987
Latin America		4,015			4,927			6,012			7,028			4,822			5,243
Northern Europe & Central Asia1) 2)		3,365			4,552			3,527			3,781			2,292			3,358
Western & Central Europe2)		4,806			4,342			4,612			5,270			4,306			4,094
Mediterranean2)		4,799			5,543			5,225			8,240			4,620			6,214
Middle East		3,070			3,546			3,650			5,195			3,157			3,701
Sub Saharan Africa		2,212			2,214			2,519			3,218			2,200			2,791
India		3,169			2,798			2,273			1,522			1,421			1,700
China & North East Asia		8,633			9,025			9,662			10,889			9,154			8,423
South East Asia & Oceania		3,108			3,033			3,720			4,009			3,374			3,674
Other1) 2)		2,627			2,466			2,222			3,312			2,853			3,134
Total		52,966			54,770			55,518			63,667			50,974			55,319
1)        Of which Sweden		927			1,103			944			908			834			1,282
2)        Of which EU		10,020			10,317			10,195			13,428			9,502			11,201
	2011												2012
Sequential change, percent	Q1			Q2			Q3			Q4			Q1			Q2
North America		-6	%		-6	%		-2	%		-7	%		14	%		2	%
Latin America		-34	%		23	%		22	%		17	%		-31	%		9	%
Northern Europe & Central Asia1) 2)		-30	%		35	%		-23	%		7	%		-39	%		47	%
Western & Central Europe2)		-19	%		-10	%		6	%		14	%		-18	%		-5	%
Mediterranean2)		-31	%		16	%		-6	%		58	%		-44	%		35	%
Middle East		-34	%		16	%		3	%		42	%		-39	%		17	%
Sub Saharan Africa		9	%		0	%		14	%		28	%		-32	%		27	%
India		11	%		-12	%		-19	%		-33	%		-7	%		20	%
China & North East Asia		-9	%		5	%		7	%		13	%		-16	%		-8	%
South East Asia & Oceania		-21	%		-2	%		23	%		8	%		-16	%		9	%
Other1) 2)		25	%		-6	%		-10	%		49	%		-14	%		10	%
Total		-16	%		3	%		1	%		15	%		-20	%		9	%
1)        Of which Sweden		-21	%		19	%		-14	%		-4	%		-8	%		54	%
2)        Of which EU		-20	%		3	%		-1	%		32	%		-29	%		18	%
	2011												2012
Year-over-year change, percent	Q1			Q2			Q3			Q4			Q1			Q2
North America		39	%		-6	%		-6	%		-20	%		-3	%		5	%
Latin America		1	%		17	%		64	%		16	%		20	%		6	%
Northern Europe & Central Asia1) 2)		46	%		70	%		49	%		-22	%		-32	%		-26	%
Western & Central Europe2)		-8	%		-2	%		7	%		-11	%		-10	%		-6	%
Mediterranean2)		-5	%		-2	%		4	%		19	%		-4	%		12	%
Middle East		-22	%		-7	%		34	%		12	%		3	%		4	%
Sub Saharan Africa		-9	%		-25	%		40	%		59	%		-1	%		26	%
India		38	%		107	%		7	%		-46	%		-55	%		-39	%
China & North East Asia		74	%		96	%		39	%		15	%		6	%		-7	%
South East Asia & Oceania		-12	%		-17	%		-3	%		2	%		9	%		21	%
Other1) 2)		37	%		49	%		19	%		57	%		9	%		27	%
Total		17	%		14	%		17	%		1	%		-4	%		1	%
1)        Of which Sweden		-11	%		11	%		-8	%		-22	%		-10	%		16	%
2)        Of which EU		-9	%		-1	%		5	%		7	%		-5	%		9	%

Ericsson Second Quarter Report 2012 25

NET SALES BY REGION BY QUARTER (continued)

	2011												2012
Year to date, SEK million	Jan - Mar			Jan - Jun			Jan - Sep			Jan - Dec			Jan - Mar			Jan - Jun
North America		13,162			25,486			37,582			48,785			12,775			25,762
Latin America		4,015			8,942			14,954			21,982			4,822			10,065
Northern Europe & Central Asia1) 2)		3,365			7,917			11,444			15,225			2,292			5,650
Western & Central Europe2)		4,806			9,148			13,760			19,030			4,306			8,400
Mediterranean2)		4,799			10,342			15,567			23,807			4,620			10,834
Middle East		3,070			6,616			10,266			15,461			3,157			6,858
Sub Saharan Africa		2,212			4,426			6,945			10,163			2,200			4,991
India		3,169			5,967			8,240			9,762			1,421			3,121
China & North East Asia		8,633			17,658			27,320			38,209			9,154			17,577
South East Asia & Oceania		3,108			6,141			9,861			13,870			3,374			7,048
Other1) 2)		2,627			5,093			7,315			10,627			2,853			5,987
Total		52,966			107,736			163,254			226,921			50,974			106,293
1)        Of which Sweden		927			2,030			2,974			3,882			834			2,116
2)        Of which EU		10,020			20,337			30,532			43,960			9,502			20,703
Year to date,	2011												2012
year-over-year change, percent	Jan - Mar			Jan - Jun			Jan - Sep			Jan - Dec			Jan - Mar			Jan - Jun
North America		39	%		13	%		6	%		-1	%		-3	%		1	%
Latin America		1	%		10	%		26	%		23	%		20	%		13	%
Northern Europe & Central Asia1) 2)		46	%		59	%		56	%		25	%		-32	%		-29	%
Western & Central Europé2)		-8	%		-5	%		-1	%		-4	%		-10	%		-8	%
Mediterranean2)		-5	%		-3	%		-1	%		5	%		-4	%		5	%
Middle East		-22	%		-15	%		-2	%		2	%		3	%		4	%
Sub Saharan Africa		-9	%		-18	%		-3	%		11	%		-1	%		13	%
India		38	%		63	%		42	%		13	%		-55	%		-48	%
China & North East Asia		74	%		85	%		66	%		47	%		6	%		0	%
South East Asia & Oceania		-12	%		-14	%		-10	%		-7	%		9	%		15	%
Other1) 2)		37	%		43	%		35	%		41	%		9	%		18	%
Total		17	%		16	%		16	%		12	%		-4	%		-1	%
1)        Of which Sweden		-11	%		-1	%		-3	%		-8	%		-10	%		4	%
2)        Of which EU		-9	%		-5	%		-2	%		1	%		-5	%		2	%

TOP 5 COUNTRIES IN SALES

	Q2						Jan - Jun
Country	2011			2012			2011			2012
UNITED STATES		22	%		23	%		23	%		24	%
JAPAN		5	%		7	%		7	%		8	%
CHINA		8	%		6	%		7	%		5	%
ITALY		4	%		4	%		4	%		4	%
BRAZIL		3	%		4	%		3	%		4	%

Ericsson Second Quarter Report 2012 26

NET SALES BY REGION BY SEGMENT

Since the segment ST-Ericsson is 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	Q2 2012, SEK million												Accumulated Jan - Jun 2012, SEK million
	Net- works			Global Services			Support Solutions			Total			Net- works			Global Services			Support Solutions			Total
North America		6,122			6,131			734			12,987			13,607			10,833			1,322			25,762
Latin America		2,293			2,505			445			5,243			4,357			5,029			679			10,065
Northern Europe & Central Asia		2,059			1,208			91			3,358			3,251			2,228			171			5,650
Western & Central Europe		1,346			2,579			169			4,094			2,881			5,155			364			8,400
Mediterranean		2,737			3,308			169			6,214			4,763			5,732			339			10,834
Middle East		1,561			1,796			344			3,701			2,878			3,448			532			6,858
Sub Saharan Africa		1,555			939			297			2,791			2,812			1,732			447			4,991
India		936			645			119			1,700			1,596			1,268			257			3,121
China & North East Asia		5,154			3,132			137			8,423			11,434			5,884			259			17,577
South East Asia & Oceania		1,885			1,650			139			3,674			3,705			3,068			275			7,048
Other		2,118			181			835			3,134			3,796			328			1,863			5,987
Total		27,766			24,074			3,479			55,319			55,080			44,705			6,508			106,293
Share of Total		50	%		44	%		6	%		100	%		52	%		42	%		6	%		100	%
	Q2 2012
Sequential change, percent	Net- works			Global Services			Support Solutions			Total
North America		-18	%		30	%		25	%		2	%
Latin America		11	%		-1	%		90	%		9	%
Northern Europe & Central Asia		73	%		18	%		14	%		47	%
Western & Central Europe		-12	%		0	%		-13	%		-5	%
Mediterranean		35	%		36	%		-1	%		35	%
Middle East		19	%		9	%		83	%		17	%
Sub Saharan Africa		24	%		18	%		98	%		27	%
India		42	%		4	%		-14	%		20	%
China & North East Asia		-18	%		14	%		12	%		-8	%
South East Asia & Oceania		4	%		16	%		2	%		9	%
Other		26	%		23	%		-19	%		10	%
Total		2	%		17	%		15	%		9	%
	Q2 2012
Year over year change, percent	Net- works			Global Services			Support Solutions			Total
North America		-22	%		47	%		170	%		5	%
Latin America		-19	%		33	%		100	%		6	%
Northern Europe & Central Asia		-36	%		0	%		-33	%		-26	%
Western & Central Europe		-21	%		7	%		-25	%		-6	%
Mediterranean		10	%		18	%		-35	%		12	%
Middle East		-4	%		6	%		60	%		4	%
Sub Saharan Africa		31	%		7	%		95	%		26	%
India		-46	%		-21	%		-52	%		-39	%
China & North East Asia		-25	%		49	%		104	%		-7	%
South East Asia & Oceania		11	%		40	%		-5	%		21	%
Other		-2	%		-234	%		94	%		27	%
Total		-17	%		26	%		47	%		1	%
	Accumulated Jan - Jun 2012
Year over year change, percent	Net- works			Global Services			Support Solutions			Total
North America		-20	%		35	%		154	%		1	%
Latin America		-10	%		37	%		56	%		13	%
Northern Europe & Central Asia		-42	%		9	%		-35	%		-29	%
Western & Central Europe		-25	%		7	%		-18	%		-8	%
Mediterranean		0	%		13	%		-37	%		5	%
Middle East		-13	%		16	%		56	%		4	%
Sub Saharan Africa		18	%		1	%		37	%		13	%
India		-60	%		-17	%		-40	%		-48	%
China & North East Asia		-14	%		42	%		45	%		0	%
South East Asia & Oceania		8	%		27	%		-10	%		15	%
Other		-9	%		865	%		114	%		18	%
Total		-17	%		23	%		40	%		-1	%

Ericsson Second Quarter Report 2012 27

PROVISIONS

	2011								2012
Isolated quarters, SEK million	Q1		Q2		Q3		Q4		Q1		Q2
Opening balance		9,744		9,529		9,335		8,065		6,265		5,930
Additions		1,304		2,032		633		838		1,003		616
Utilization/Cash out		-1,091		-1,908		-1,464		-1,524		-980		-850
Of which restructuring		-762		-1,220		-747		-494		-401		-342
Reversal of excess amounts		-88		-451		-556		-824		-370		-453
Reclassification, translation difference and other		-340		133		117		-290		12		75
Closing balance		9,529		9,335		8,065		6,265		5,930		5,318
	2011								2012
Year to date, SEK million	Jan - Mar		Jan - Jun		Jan - Sep		Jan - Dec		Jan - Mar		Jan - Jun
Opening balance		9,744		9,744		9,744		9,744		6,265		6,265
Additions		1,304		3,336		3,969		4,807		1,003		1,619
Utilization/Cash out		-1,091		-2,999		-4,463		-5,987		-980		-1,830
Of which restructuring		-762		-1,982		-2,729		-3,223		-401		-743
Reversal of excess amounts		-88		-539		-1,095		-1,919		-370		-823
Reclassification, translation difference and other		-340		-207		-90		-380		12		87
Closing balance		9,529		9,335		8,065		6,265		5,930		5,318

NUMBER OF EMPLOYEES

	2011								2012
End of period	Mar 31		Jun 30		Sep 30		Dec 31		Mar 31		Jun 30
North America		13,531		14,553		14,782		14,801		16,281		15,872
Latin America		7,394		9,875		10,315		11,191		11,538		11,176
Northern Europe & Central Asia1)		21,339		21,451		21,083		20,987		21,341		21,457
Western & Central Europe		10,629		10,518		10,601		10,806		10,900		10,837
Mediterranean		10,907		11,069		11,521		11,645		11,858		11,986
Middle East		4,057		4,160		4,304		4,336		4,361		4,231
Sub Saharan Africa		1,644		1,637		1,891		2,283		2,317		2,277
India		7,448		8,563		9,672		11,535		12,567		12,644
China & North East Asia		10,111		11,601		12,313		12,567		13,016		13,233
South East Asia & Oceania		4,486		4,502		4,408		4,374		4,372		4,382
Total		91,546		97,929		100,890		104,525		108,551		108,095
1)        Of which Sweden		17,771		17,930		17,588		17,500		17,767		17,890

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

	2011								2012
Isolated quarters, SEK million	Q1		Q2		Q3		Q4		Q1		Q2
Additions
Property, plant and equipment		980		1,196		1,294		1,524		1,648		994
Capitalized development expenses		269		429		257		560		251		525
IPR, brands and other intangible assets		359		29		488		97		5,570		992
Total		1,608		1,654		2,039		2,181		7,469		2,511
Depreciation, amortization and impairment losses
Property, plant and equipment		841		821		827		1,057		914		982
Capitalized development expenses		232		240		263		267		245		259
IPR, brands and other intangible assets, etc.		1,136		1,111		1,137		1,104		1,156		1,160
Total		2,209		2,172		2,227		2,428		2,315		2,401

Ericsson Second Quarter Report 2012 28

OTHER INFORMATION

	Apr - Jun				Jan - Jun						Jan - Dec
	2011		2012		2011			2012			2011
Number of shares and earnings per share
Number of shares, end of period (million)		3,273		3,305		3,273			3,305			3,273
Of which class A-shares (million)		262		262		262			262			262
Of which class B-shares (million)		3,011		3,043		3,011			3,043			3,011
Number of treasury shares, end of period (million)		68		90		68			90			63
Number of shares outstanding, basic, end of period (million)		3,205		3,215		3,205			3,215			3,211
Numbers of shares outstanding, diluted, end of period (million)		3,232		3,245		3,232			3,245			3,238
Average number of treasury shares (million)		69		69		70			65			68
Average number of shares outstanding, basic (million)		3,204		3,215		3,203			3,213			3,206
Average number of shares outstanding, diluted (million)1)		3,231		3,245		3,230			3,243			3,233
Earnings per share, basic (SEK)		0.97		0.35		2.25			3.13			3.80
Earnings per share, diluted (SEK)1)		0.96		0.34		2.23			3.10			3.77
1)        Potential ordinary shares are not considered when their conversion to ordinary shares would increase earnings per share
Ratios
Days sales outstanding		—		—		99			111			91
Inventory turnover days		90		80		89			84			78
Payable days		67		57		68			63			62
Equity ratio (%)		—		—		51.9	%		52.5	%		51.8	%
Capital turnover (times)		1.2		1.2		1.2			1.1			1.2
Payment readiness, end of period		—		—		84,637			72,727			86,570
Payment readiness, as percentage of sales		—		—		39.3	%		34.2	%		38.1	%
Exchange rates used in the consolidation
SEK/EUR - average rate		—		—		8.94			8.87			9.02
- closing rate		—		—		9.16			8.77			8.92
SEK/USD - average rate		—		—		6.35			6.82			6.48
- closing rate		—		—		6.33			6.96			6.90
Other
Regional inventory, end of period,		22,485		22,266		22,485			22,266			19,921
Export sales from Sweden		30,006		25,794		64,050			52,988			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 30-32 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 Second Quarter Report 2012 29

RESTRUCTURING CHARGES BY FUNCTION

	2011								2012
Isolated quarters, SEK million	Q1		Q2		Q3		Q4		Q1		Q2
Cost of sales		-185		-257		-283		-506		-496		-389
Research and development expenses		-180		-208		-115		-58		-19		-107
Selling and administrative expenses		-8		-1,236		22		-170		-54		-98
Subtotal Ericsson excluding Sony Ericsson and ST-Ericsson		-373		-1,701		-376		-734		-569		-594
Share in Sony Ericsson charges		—		—		—		-419		—		—
Share in ST-Ericsson charges		-15		-77		-17		-31		-30		-190
Subtotal Sony Ericsson and ST-Ericsson		-15		-77		-17		-450		-30		-190
Total		-388		-1,778		-393		-1,184		-599		-784
	2011								2012
Year to date, SEK million	Jan - Mar		Jan - Jun		Jan - Sep		Jan - Dec		Jan - Mar		Jan - Jun
Cost of sales		-185		-442		-725		-1,231		-496		-885
Research and development expenses		-180		-388		-503		-561		-19		-126
Selling and administrative expenses		-8		-1,244		-1,222		-1,392		-54		-152
Subtotal Ericsson excluding Sony Ericsson and ST-Ericsson		-373		-2,074		-2,450		-3,184		-569		-1,163
Share in Sony Ericsson charges		—		—		—		-419		—		—
Share in ST-Ericsson charges		-15		-92		-109		-140		-30		-220
Subtotal Sony Ericsson and ST-Ericsson		-15		-92		-109		-559		-30		-220
Total		-388		-2,166		-2,559		-3,743		-599		-1,383

RESTRUCTURING CHARGES BY SEGMENT

	2011								2012
Isolated quarters, SEK million	Q1		Q2		Q3		Q4		Q1		Q2
Networks		-205		-1,039		-121		-235		-87		-167
Global Services		-166		-487		-254		-456		-473		-415
Of which Professional Services		-145		-361		-225		-264		-358		-302
Of which Network Rollout		-21		-126		-29		-192		-115		-113
Support Solutions		-2		-119		-6		-16		-9		-12
Unallocated		—		-56		5		-27		—		—
Subtotal Ericsson excluding Sony Ericsson and ST-Ericsson		-373		-1,701		-376		-734		-569		-594
Sony Ericsson		—		—		—		-419		—		—
ST-Ericsson		-15		-77		-17		-31		-30		-190
Subtotal Sony Ericsson and ST-Ericsson		-15		-77		-17		-450		-30		-190
Total		-388		-1,778		-393		-1,184		-599		-784
	2011								2012
Year to date, SEK million	Jan - Mar		Jan - Jun		Jan - Sep		Jan - Dec		Jan - Mar		Jan - Jun
Networks		-205		-1,244		-1,365		-1,600		-87		-254
Global Services		-166		-653		-907		-1,363		-473		-888
Of which Professional Services		-145		-506		-731		-995		-358		-660
Of which Network Rollout		-21		-147		-176		-368		-115		-228
Support Solutions		-2		-121		-127		-143		-9		-21
Unallocated		—		-56		-51		-78		—		—
Subtotal Ericsson excluding Sony Ericsson and ST-Ericsson		-373		-2,074		-2,450		-3,184		-569		-1,163
Sony Ericsson		—		—		—		-419		—		—
ST-Ericsson		-15		-92		-109		-140		-30		-220
Subtotal Sony Ericsson and ST-Ericsson		-15		-92		-109		-559		-30		-220
Total		-388		-2,166		-2,559		-3,743		-599		-1,383

Ericsson Second Quarter Report 2012 30