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    Erik Lindholm-Rojestal • Skandinaviska Enskilda Banken AB

    Erik Lindholm-Rojestal's questions to Telefonaktiebolaget LM Ericsson (ERIC) leadership

    Erik Lindholm-Rojestal's questions to Telefonaktiebolaget LM Ericsson (ERIC) leadership • Q3 2024

    Question

    Erik Lindholm-Rojestal from SEB pointed to the rolling 12-month EBITA margin of 10% and asked if Ericsson needs to implement more cost-saving actions in 2025 to reach its 15-18% target, given the weak market.

    Answer

    CFO Lars Sandstrom confirmed that with a flattish market and ongoing salary inflation, the company will need to continue adjusting its cost base into the next year. CEO Börje Ekholm added that continuous cost reviews are a normal part of business under current market conditions.

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    Erik Lindholm-Rojestal's questions to Telefonaktiebolaget LM Ericsson (ERIC) leadership • Q2 2024

    Question

    Erik Lindholm-Rojestal of SEB requested quantification of recent cost-saving actions and their expected impact for the second half of the year, particularly in light of the company not expecting normal OpEx seasonality.

    Answer

    CFO Lars Sandstrom explained that normal OpEx seasonality does not apply because ongoing cost reductions are being offset by salary inflation and higher incentive accruals. He guided for H2 OpEx development to be similar to H1 and noted that cost actions are broad-based, with a focus on adapting the Mobile Networks segment to lower demand.

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