Amounts marked with an ‘*’ in this document represent sales growth adjusted for the impact of acquisitions and divestments and effects of foreign currency fluctuations, also named organic sales growth. These numbers present performance on a comparable basis to improve the comparability of results between periods. Organic sales growth figures are non-IFRS measures. ‘Adjusted’ metrics are adjusted to exclude restructuring charges and are non-IFRS measures. This is a change in nomenclature only. See ‘Financial statements and other information’ for Alternative performance measures.

Net sales

Sales declined by -1%* YoY, with Networks as well as Cloud Software and Services reporting a -1%* decrease. In Networks, strong growth in market area North America was offset by lower customer investment levels in other markets. Sales in segment Enterprise declined by -3%* due to lower sales in Global Communications Platform.

Reported Group sales decreased by -4% YoY, to SEK 61.8 (64.5) b.

A new 5G patent licensing agreement was signed in the quarter and IPR licensing revenues increased to SEK 3.5 (2.8) b., part of which related to retroactive revenue for unlicensed periods. 82% of IPR licensing revenues are reported in segment Networks, with the remainder in Cloud Software and Services.

Gross income and margin

Adjusted gross margin increased to 46.3% (39.2%). The increase was driven primarily by improved gross margin in Networks, resulting from a favorable market mix, cost-reduction actions and a competitive portfolio offering. Gross margin also increased in Cloud Software and Services, and in Enterprise, benefiting from cost-reduction actions and the prioritization of profitable market segments. In addition, gross margin was supported by higher IPR licensing revenues and a non-recurring benefit from a settlement of outstanding customer accounts receivable, as described in the Q2 2024 report. Adjusted gross income increased to SEK 28.6 (25.3) b., with the strong increase in gross margin partly offset by lower sales.

Reported gross income increased to SEK 28.2 (24.7) b., with a gross margin of 45.6% (38.4%).

Research and development (R&D) expenses

R&D expenses increased to SEK -13.1 (-11.9) b., including restructuring charges of SEK -1.0 (-0.2) b. Excluding restructuring charges, R&D expenses increased by SEK -0.5 b. YoY, reflecting the investments in R&D for technology leadership and operational resilience as well as lower rate of capitalization of development expenses in Enterprise. The impact from salary increases and higher variable incentive accruals was broadly offset by savings from cost-reduction actions.

Selling and administrative (SG&A) expenses

SG&A expenses decreased to SEK -9.4 (-9.6) b. including a SEK 0.4 b. benefit from lower amortization following the impairment of intangible assets in Q2 2024. SG&A expenses increased in segment Enterprise, reflecting investments to improve operational effectiveness. Salary increases and higher variable incentive accruals were offset by cost-reduction actions.

Other operating income and expenses

Other operating income and expenses were SEK 0.0 (-32.0) b. Q3 2023 was impacted by a non-cash impairment charge of SEK -31.9 b. related to the Vonage acquisition.

Restructuring charges

Restructuring charges amounted to SEK -1.6 (-0.9) b. mainly related to redundancy activities. Gross income included SEK -0.4 (-0.5) b. of restructuring charges, while operating expenses included restructuring charges of SEK -1.1 (-0.3) b.

EBITA

Adjusted EBITA increased to SEK 7.8 (4.7) b., as higher gross income was partly offset by increased operating expenses. The adjusted EBITA margin was 12.6% (7.3%).

EBITA increased to SEK 6.2 (3.8) b. corresponding to an EBITA margin of 10.0% (5.9%).

EBIT

Adjusted EBIT increased to SEK 7.3 (-28.0) b. The adjusted EBIT margin was 11.9% (-43.5%). Adjusted EBIT in Q3 2023 would have been SEK 3.9 b. excluding the impairment charge. Amortization impacted EBIT by SEK -0.4 (-0.9) b.

Reported EBIT increased to SEK 5.8 (-28.9) b. with an EBIT margin of 9.3% (-44.8%).

Financial income and expenses, net

Financial income and expenses were stable at SEK -0.5 (-0.7) b. The currency hedge effect was SEK 0.0 (0.0) b.

Income tax

Taxes were SEK -1.4 (-0.9) b. A tax rate of 28% is expected for the full year, excluding the tax impact for the SEK -15.1 b. impairment charge recorded in Q2 2024.

Net income

Net income increased to SEK 3.9 (-30.5) b. Net income in Q3 2023 would have been SEK 1.4 b. excluding the impairment charge of SEK -31.9 b. Diluted EPS increased to SEK 1.14 (-9.21).

Employees

The number of employees on September 30, 2024, was 95,984 compared with 97,985 on June 30, 2024.

Financial highlights, year-to-date (Jan-Sep) development

Sales decreased by -7%* mainly driven by a -10%* decline in Networks. Cloud Software and Services and Enterprise sales declined by -1%*.

Reported sales decreased by -9% to SEK 175.0 (191.5) b. mainly driven by a -12% sales decline in Networks to SEK 111.4 (126.4) b. Sales in Cloud Software and Services declined by -2% to SEK 43.2 (44.1) b. and Enterprise sales declined by -1% to SEK 18.8 (19.0) b.

Sales grew by 15%* in market area North America. Growth was offset by materially lower sales in market area South East Asia, Oceania and India, as investment levels in India have normalized after a record year in 2023. Sales also declined organically in the other market areas. Sales were supported by IPR licensing revenues of SEK 10.5 (8.4) b.

Adjusted gross income increased to SEK 77.7 (74.8) b. while gross margin increased to 44.4% (39.1%). The improvement in gross margin was driven by a more favorable market mix, cost-reduction initiatives, and increased IPR licensing revenues. Reported gross income was SEK 76.7 (73.0) b. with a gross margin of 43.8% (38.1%).

Adjusted EBITA increased to SEK 16.9 (13.2) b. with a margin of 9.7% (6.9%), supported by higher gross income despite lower sales. Increased operating expenses were more than offset by a one-time gain of SEK 1.9 b. in Q1 2024. EBITA increased to SEK 13.5 (8.2) b. and the EBITA margin was 7.7% (4.3%).

Adjusted EBIT (loss) was SEK -0.3 (-21.2) b. with a margin of -0.1% (-11.1%), including a SEK -15.1 (-31.9) b. impairment charge impact. Amortization of intangible assets was SEK -2.0 (-2.5) b. Reported EBIT (loss) was SEK -3.6 (-26.2) b., and the EBIT margin was -2.1% (-13.7%).

Net income (loss) was SEK -4.5 (-29.5) b. including a SEK -11.4 (-31.9) b. impairment charge impact and restructuring charges of SEK -3.4 (-5.0) b. The net income increase was also supported by SEK 1.8 b. lower taxes. Diluted EPS increased to SEK -1.43 (-8.96).

Market Area North America

Sales increased by 55%* YoY. Networks sales increased by 80%* benefiting strongly from recent contract wins and selective network investments by some large customers. Cloud Software and Services sales declined by -4%* due to project delivery milestones in the prior year period. Reported sales increased by 51% YoY.

Market Area Europe and Latin America

Sales increased by 1%* YoY. Sales in Europe increased slightly, benefiting from strong deliveries in the quarter, despite a continued challenging market environment. In Latin America, sales decreased due to increased competition and lower customer network investments. Reported sales declined by -2% YoY.

Market Area South East Asia, Oceania and India

Sales decreased by -43%* YoY. Networks sales declined primarily due to normalized investment levels in India after a record year in 2023. Cloud Software and Services sales declined due to project delivery milestones in the prior year period and descoping of a managed services contract. Reported sales declined by -44% YoY.

Since the second quarter, Ericsson has been awarded major new contracts in multiple markets, including 4G and 5G deals with Vodafone Idea in India, and the majority share of Viettel’s nationwide 5G deployment in Vietnam.

Market Area North East Asia

Sales declined by -29%* YoY. Networks sales declined due to a slowdown in customer capex investments in some 5G front-runner markets, after significant deployment in recent years. Cloud Software and Services sales were stable. Reported sales declined by -31% YoY.

Market Area Middle East and Africa

Sales declined by -22%* YoY. Sales declined in Networks, primarily driven by macroeconomic headwinds and reduced customer capex investments. Cloud Software & Services sales were stable. Reported sales decreased by -24% YoY.

Market Area Other

Market area Other primarily includes IPR licensing revenues and almost all sales in segment Enterprise. Sales increased by 4%* YoY driven by IPR licensing revenues. Reported sales increased by 1% YoY.

IPR

A new 5G patent licensing agreement was signed in the quarter and IPR licensing revenues increased to SEK 3.5 (2.8) b, part of which related to retroactive revenue for unlicensed periods. IPR licensing revenues are expected to reach at least SEK 13 b. in 2024, and opportunities to further grow IPR licensing revenues remain.

Mobile Networks – Segment Networks

Breakdown of sales into products, services and IPR licensing is available in note 3.

Net sales

Sales decreased by -1%* YoY, as strong sales growth in market area North America was offset by declines in most other markets. Sales increased by 6% sequentially, ahead of average seasonality, driven by North America. Reported sales decreased by -4% YoY to SEK 40.0 (41.5) b.

Sales in market area North America increased by 80%* YoY, benefiting from contract wins and selective network investments by some large customers. Sales in the other market areas decreased, with a -49%* decline in market area South East Asia, Oceania and India as operator capex investments in India have normalized following a peak in 2023. Sales were supported by increased IPR licensing revenues, benefiting from new 5G licensing agreements signed in each of Q1-Q3 2024.

Gross income and margin

Adjusted gross margin increased to 48.7% (39.9%), as a result of a favorable business mix, continued cost-reduction initiatives and operational leverage in the supply chain. In addition, gross margin was supported by higher IPR licensing revenues and a non-recurring benefit from a settlement of outstanding customer accounts receivable. Adjusted gross income increased to SEK 19.5 (16.6) b.

EBITA

Adjusted EBITA increased to SEK 8.1 (5.2) b. and the EBITA margin was 20.3% (12.6%). The benefit of higher gross income and continued efficiency improvements was partly offset by increased R&D investments. These R&D investments support the strategy to build high-performing programmable networks, ensure continued technology leadership, and maintain a competitive portfolio.

Net sales rolling four quarters were SEK 156.4 b. and the adjusted EBITA margin rolling four quarters was 16.0%.

Mobile Networks – Segment Cloud Software and Services

Breakdown of sales into products, services and IPR licensing is available in note 3.

Net sales

Sales declined by -1%* YoY, with lower sales of services due to project delivery milestones. Sales decreased by -1% sequentially, with growth in market areas North America and Middle East and Africa offset by sequential declines in the other market areas. Reported sales decreased by -4% YoY to SEK 15.0 (15.6) b.

Sales grew by 4%* YoY in market area Europe and Latin America as a result of project delivery milestones but declined in other market areas. Sales were supported by increased IPR licensing revenues, benefiting from new 5G licensing agreements signed in each of Q1-Q3 2024.

Gross income and margin

Adjusted gross margin increased to 38.7% (36.2%) as a result of improved delivery performance, a favorable product mix and continued focus on commercial discipline. Gross margin was also supported by higher IPR licensing revenues and a non-recurring benefit from a settlement of outstanding customer accounts receivable. Adjusted gross income increased to SEK 5.8 (5.6) b.

EBITA

Adjusted EBITA was stable at SEK 0.4 (0.4) b. with an EBITA margin of 2.9% (2.8%). The improvement in gross income was offset by increased investments in the 5G portfolio as well as in resilience. Strategy execution continues, with a focus on commercial discipline, accelerating automation to reduce deployment and maintenance efforts.

Net sales rolling four quarters were SEK 62.7 b. and the adjusted EBITA margin rolling four quarters was 3.6%.

Enterprise – Segment Enterprise

Net sales

Sales declined by -3%* YoY, as lower sales in Global Communications Platform were partly offset by growth in Enterprise Wireless Solutions. Reported sales decreased by -5% YoY to SEK 6.3 (6.7) b.

Sales in Global Communications Platform were negatively impacted, as expected, by the decision to focus on more profitable market segments and to reduce activities in some countries, as well as the earlier announced low-margin customer contract loss in Q4 2023. Sales growth in Enterprise Wireless Solutions slowed to 5% YoY, reflecting lower WWAN growth. These trends are expected to further impact Enterprise sales in the near term.

In the quarter, Ericsson Wireless Solutions unveiled new branding and a new product portfolio for enterprise-driven 5G network adoption, including private 5G and neutral host solutions to deliver business-critical connectivity for enterprise environments.

Gross income and margin

Adjusted gross margin increased to 52.4% (48.8%), benefiting from the decision to focus on more profitable markets and products in Global Communications Platform, and the timing of payments in Technologies and New Businesses. Adjusted gross income was stable at SEK 3.3 (3.3) b. reflecting the renewed focus on profitability.

EBITA (loss)

Adjusted EBITA (loss) was SEK -0.8 (-0.6) b. Investments to improve operational effectiveness and to build the Global Network Platform increased, broadly offset by lower variable incentive costs and lower rate of capitalization of development expenses. Adjusted EBITA margin was -12.4% (-8.9%).

Net sales rolling four quarters were SEK 25.5 b. and the adjusted EBITA margin rolling four quarters was -14.1%.

In the quarter, a new joint venture was announced together with 12 of the world’s largest telecom operators to combine and sell network APIs on a global scale. In addition, Vonage announced a collaboration on communication and network APIs with SAP.

Segment Other

Net sales

Reported sales declined to SEK 0.5 (0.7) b., primarily due to the discontinuation of the IoT business.

Gross income and margin

Adjusted gross income increased to SEK 0.0 (-0.2) b. mainly reflecting a one-off impairment of assets in the Media Businesses in Q3 2023. Adjusted gross margin increased to 5.1% (-24.5%).

EBITA (loss)

Adjusted EBITA (loss) was SEK 0.0 (-0.3) b.

Net sales rolling four quarters were SEK 2.2 b.

Cash flow

Free cash flow before M&A was SEK 12.9 (-0.5) b. benefiting from increased profitability and lower working capital. Working capital improved, as a result of a strong focus on inventory and supply chain management, as well as a favorable market mix.

Cash flow from financing activities was SEK -4.2 (5.1) b., primarily reflecting the repayment of a USD 281 m. loan and a USD 200 m. credit facility, partly offset by the drawdown of a new USD 108 m. loan.

Financial position

Gross cash increased sequentially by SEK 8.5 b. to SEK 62.2 b. Ericsson has unutilized committed credit facilities of SEK 30.3 b. (USD 3.0 b.).

The average maturity of long-term borrowings was 4.0 years as of September 30, 2024, compared with 3.3 years as of September 30, 2023.

Net cash increased sequentially by SEK 12.4 b. to SEK 25.5 b. driven by positive free cash flow after M&A.

Liabilities for post-employment benefits decreased to SEK 24.7 b. from SEK 26.1 b. due to higher discount rate in Sweden. The Swedish defined benefit obligation (DBO) was calculated using a discount rate based on the yields of Swedish government bonds. If the discount rate had been based on Swedish covered mortgage bonds, the group liability for post-employment benefits would have been approximately SEK 14.9 b. (SEK 9.8 b. lower than current DBO).

Key data points

Market

Dell’Oro estimates that the global RAN equipment market will decline by -8% to -10% (-9%) in 2024. North America is expected to grow by 0% to 5% (3%), Europe to decline by -5% to -10% (-7%) and Mainland China to decline by -5% to -10% (-7%).

Source: Dell’Oro Mobile RAN quarterly report 2Q24, Aug 2024. Numbers in parenthesis are from the 2024 Dell’Oro Mobile RAN 5-year forecast, July 2024.

Ericsson

Net sales

Reported average seasonality last 3 years (2021–2023), %.

Net sales may show large variations between quarters, including currency changes.

Currency exposure

Rule of thumb: A change by 10% of SEK to USD would have an impact of approximately 5% on net sales.

Amortization of intangible assets

Amortization of intangible assets is expected to be around SEK -0.5 b. per quarter, of which approximately SEK -0.4 b. related to segment Enterprise.

Restructuring charges

Restructuring charges for 2024 are expected to be around SEK 4 b.

Segments

Networks

Sales growth in Q4 is expected to be below average 3 years seasonality, reflecting a stronger than average Q3.

Adjusted gross margin in Q4 is expected to be in the range of 47%-49%.

Cloud Software and Services

Sales growth in Q4 is expected to be below average 3 years seasonality.

Parent Company

Income after financial items January – September 2024, was SEK -4.0 (-14.7) b.

At the end of the quarter, gross cash (cash, cash equivalents plus interest-bearing securities, current and non-current) amounted to SEK 46.2 (25.6) b.

There was a decrease in intercompany lending of SEK 2.4 b. and an increase in intercompany borrowing of SEK 3.0 b. in the quarter.

At the end of the quarter, non-restricted equity amounted to SEK 13.9 (14.0) billion, and total equity amounted to SEK 62.1 (62.2) b.

The holding of treasury stock on September 30, 2024, was 15,579,561 Class B shares.

Other information

Legal proceedings not involving governmental authorities

On March 3, 2022, Telefonaktiebolaget LM Ericsson (together with its consolidated operating companies and all other subsidiaries, “Ericsson” or the “Company”) and certain officers of Ericsson were named as defendants in a putative class action filed on behalf of purchasers of Ericsson ADS in the United States, in the United States District Court for the Eastern District of New York. An amended complaint was filed on September 9, 2022, which added a former Ericsson officer as a defendant. The amended complaint alleged violations of United States securities laws, in connection with allegedly false and misleading statements principally concerning the Company’s adherence with its compliance and anti-corruption policies and obligations and the conduct of its business in Iraq. On May 24, 2023, the court granted Ericsson’s motion to dismiss and dismissed the case with prejudice, concluding that Ericsson did not violate any disclosure obligation to investors. On June 23, 2023, plaintiff filed a notice of appeal to the United States Court of Appeals for the Second Circuit. Following the submission of appellate briefing over the second half of 2023, oral argument for the appeal was held on March 22, 2024. On September 3, 2024, the Second Circuit affirmed the dismissal.

In August 2022, a civil lawsuit was filed in the United States District Court for the District of Columbia against Telefonaktiebolaget LM Ericsson and Ericsson Inc. (collectively, the “Ericsson defendants”). The lawsuit was brought by US military service members, employees of US government contractors and other civilians who were killed or injured in terrorist attacks in Iraq, Afghanistan and Syria from 2005 to 2021, as well as by their family members. The lawsuit asserts claims against the Ericsson defendants under the US Anti-Terrorism Act alleging that the Ericsson defendants made payments that ultimately aided the terrorist organizations that committed, planned or authorized the attacks. In November 2022, the Ericsson defendants filed a motion to dismiss the complaint. On December 20, 2022, plaintiffs filed an amended complaint, which added additional plaintiffs, including a plaintiff injured in Turkey, and also named Ericsson AB (collectively with the Ericsson defendants, the “Ericsson corporate defendants”), CEO Börje Ekholm and a former employee (who has not been served with process) as additional defendants and also asserted additional allegations and claims. In March 2023, the Ericsson corporate defendants and Mr. Ekholm filed motions to dismiss the amended complaint. Plaintiffs filed their oppositions to defendants’ motions to dismiss the amended complaint in June 2023, and defendants filed reply briefs in support of their motions to dismiss in July 2023. All briefing has been submitted, and resolution of the matter is pending with the District Court. All defendants will continue to vigorously defend this matter.

In February 2024, a second civil lawsuit also alleging violations of the US Anti-Terrorism Act was filed in the United States District Court for the District of Columbia. The lawsuit was filed by the same law firm and involves substantially similar factual allegations and claims as those made in the Anti-Terrorism Act lawsuit originally filed in August 2022, and similarly names the same Ericsson corporate defendants, CEO Börje Ekholm and a former employee as defendants. The new lawsuit was brought by additional US military service members, employees of US government contractors and other civilians who were killed or injured in terrorist attacks in Iraq, Afghanistan, Syria, Turkey, Niger, and France from 2005 to 2021, as well as by their family members. The District Court for the District of Columbia has stayed the proceedings in this matter pending its decision on the motions

to dismiss in the earlier-filed suit. The defendants will vigorously defend this matter.

Beginning on August 4, 2023, a number of civil lawsuits have been filed against Telefonaktiebolaget LM Ericsson in Solna District Court, Sweden. As of October 15, 2024, 93 claimants have filed suit, which are coordinated and financed by a UK-based litigation funder. The claimants consist of a group of non-Swedish funds and financial institutions that allegedly are or have been shareholders of the Company. Their damages claims are primarily based on alleged inadequate disclosure of the contents of the Company’s 2019 internal Iraq investigation report. Ericsson filed its statement of defense on March 15, 2024, and will continue to vigorously defend this matter.

On October 11, 2023, Ericsson commenced patent infringement proceedings against certain Lenovo entities (together “Lenovo”) in the Eastern District of North Carolina (“EDNC”). In the course of the proceedings, Ericsson seeks declarations that Ericsson has complied with its FRAND commitments and with the ETSI IPR Policy and that Lenovo has infringed Ericsson patents. Ericsson has also commenced patent infringement proceedings against Lenovo at the United States International Trade Commission (“ITC”) and in other jurisdictions (Brazil and Colombia). In return, Lenovo has filed lawsuits against Ericsson in the High Court of Justice in the UK, at the Unified Patent Court, at the ITC, in the EDNC, and has applied for an anti-suit injunction in the EDNC. On February 14, 2024, the EDNC denied the anti-suit injunction. This decision has been appealed. This is a global dispute, and additional lawsuits and other legal actions may be initiated by the parties.

The Company actively manages its IPR portfolio and its need for third party licenses and is involved from time to time, in the ordinary course of business, in litigation related thereto, as plaintiff, defendant and other capacities.

In addition to the proceedings discussed above, the Company is, and in the future may be, involved in various other regulatory investigations, lawsuits, claims (including claims by third parties we have indemnified against infringement liability) and proceedings incidental to the ordinary course of business.

Legal proceedings involving governmental authorities

In February 2022, Ericsson publicly disclosed that an internal investigation in 2019 included a review of the conduct of Ericsson employees, vendors and suppliers in Iraq during the period between 2011 to 2019. The investigators could not determine the ultimate recipients of any payments, nor identify that any Ericsson employee was directly involved in financing terrorist organizations. The Company’s 2019 internal investigation did not conclude that Ericsson made or was responsible for any payments to any terrorist organization.

In March 2022, the United States Department of Justice (“DOJ”) informed Ericsson it had determined that, before entering into the Deferred Prosecution Agreement (“DPA”), the Company provided insufficient information to the DOJ about the Company’s 2019 internal investigation into conduct in Iraq. The DOJ also determined that the Company breached the DPA by failing to inform the DOJ about the investigation after entering into the DPA.

On March 2, 2023, the Company reached a resolution (“Plea Agreement”) with the DOJ regarding the non-criminal breaches of

the DPA. Under the Plea Agreement, Ericsson pleaded guilty to previously deferred charges relating to conduct that occurred prior to 2017. In addition, Ericsson agreed to pay a fine of USD 206.7 million. The entry of the Plea Agreement brought the DPA to an end.

On June 3, 2024, Ericsson announced the conclusion of the work and term of the independent compliance monitor originally appointed by the DOJ in June 2020 in connection with the DPA. The monitorship and Plea Agreement concluded on June 2, 2024.

With respect to the matters discussed in the 2019 internal Iraq investigation report, the Company continues to investigate these matters and related matters in full cooperation with the DOJ. As additional information continues to be identified and evaluated during the ongoing investigations in continued cooperation with the DOJ, it is expected that there will not be any conclusive determinations on the outcome until the investigation is completed. The scope and duration of the investigation remains uncertain.

In June 2022, the US Securities and Exchange Commission (“SEC”) informed Ericsson that it opened an investigation concerning matters described in the Company’s 2019 internal Iraq investigation report. Under Ericsson’s consent judgment with the SEC, Ericsson is permanently enjoined from violating the anti-bribery, books and records and internal controls provisions in the Foreign Corrupt Practices Act (“FCPA”). Violations of the injunction, consent judgment or securities law could subject the Company to new civil and criminal penalties as well as new enforcement actions. On September 26, 2024, the SEC Staff informed Ericsson that it had concluded its investigation into Ericsson and that based on the information the SEC Staff has to date, the SEC Staff does not intend to recommend an enforcement action by the SEC against Ericsson.

As part of its defense to a now settled patent infringement lawsuit filed by Ericsson in 2013 in the Delhi High Court against Indian handset company Micromax, Micromax filed a complaint against Ericsson with the Competition Commission of India (“CCI”). The CCI decided to refer the case to the Director General’s Office for an in-depth investigation. The CCI opened similar investigations against Ericsson in January 2014 based on claims made by Intex Technologies (India) Limited and, in 2015, based on a now settled claim from iBall. Ericsson has challenged CCI’s jurisdiction in these cases before the Delhi High Court. On July 13, 2023, the Division Bench of the Delhi High Court found that in this instance the CCI has no power to conduct the pending investigations against Ericsson. The CCI has appealed this order to the Supreme Court of India.

In April 2019, Ericsson was informed by China’s State Administration for Market Regulations (“SAMR”) Anti-monopoly bureau that SAMR has initiated an investigation into Ericsson’s patent licensing practices in China. Ericsson is cooperating with the investigation, which is still in a fact-finding phase. The next steps include continued fact-finding and meetings with SAMR in order to facilitate the authority’s assessment and conclusions. In case of adverse findings, SAMR has the power to impose behavioral and financial remedies.

PRESS RELEASES

Risk factors

Ericsson is exposed to a number of risks in its activities. To stimulate identification and support cross-functional treatment within the Ericsson Group, risks are grouped in a number of categories, including, for example, risks relating to technology, IPR, compliance, project execution, operations, products and services, treasury and accounting, the geopolitical environment, M&A, cybersecurity and occupational health and safety. Ericsson’s risk management is embedded into strategy development and operational processes and material Group risks are regularly assessed and reviewed by executives as required by Ericsson’s Material Group Risk Protocol to ensure accountability, effectiveness, efficiency, business continuity and compliance. Risks are defined in both a short-term and long-term perspective and are related to long-term objectives and strategic direction as well as to short-term objectives. Risk factors and uncertainties of relevance to Ericsson are described in the Ericsson Annual Report 2023 and in the Annual Report on Form 20-F for the year ended December 31, 2023 (in the following, the “Annual Report 2023”), as well as in Ericsson’s quarterly reports. Updates to these risk factors and uncertainties observed by Ericsson that are deemed of short-term relevance include, but are not limited to, the following risks described below. See also the risks set out in the section titled “Forward-Looking Statements.”

Ericsson’s ability to benefit from intellectual property rights (IPRs), which are critical to the Company’s business, may be limited by changes in regulation relating to patents, inability to prevent infringement, the loss of licenses to or from third parties, infringement claims brought against the Company by competitors and others and changes in the area of open standards when it comes to licensing of open standard essential patents. 

As mentioned in the Annual Report 2023, including in the risk factor 1.12, there can be no assurance that the Company’s patents will not be challenged, invalidated, or circumvented, or that any rights granted in relation to Ericsson’s patents will in fact provide the Company with competitive advantages.

Ericsson’s use of a combination of trade secrets, confidentiality policies, and nondisclosure and other contractual arrangements, in addition to relying on patent, copyright and trademark laws to protect Ericsson’s IPRs, may not be adequate to prevent or deter infringement or other misappropriation. In addition, Ericsson relies on many software patents, and limitations on the patentability of software may materially affect Ericsson’s business.

Moreover, the Company may not be able to detect unauthorized use or take appropriate and timely steps to establish and enforce Ericsson’s proprietary rights. In fact, existing legal systems of some countries in which Ericsson conducts business offer limited, if any, protection of IPRs. The Company’s solutions may also require it to license technologies from third parties. It may be necessary in the future to seek or renew licenses, and there can be no assurance that they will be available on acceptable terms, or at all. Moreover, the inclusion in Ericsson’s products of software or other intellectual property licensed from third parties on a non-exclusive basis could limit the Company’s ability to protect proprietary rights in Ericsson’s products.

Many key aspects of telecommunications and data network technology are governed by industry-wide standards usable by all market participants. As the number of market entrants and the complexity of technology increases, the possibility of functional overlap and inadvertent infringement of IPRs also increases, which

has been the case with the introduction of 5G technology. In addition to industry-wide standards, other key industry-wide software solutions are currently developed by market participants as free and open-source software. Contributing to the development and distribution of software developed as free and open-source software may limit Ericsson’s ability to enforce applicable patents in the future.

Third parties have asserted, and may assert in the future, claims directly against Ericsson or against Ericsson’s customers, alleging infringement of their IPRs. Defending such claims may be expensive, time-consuming and divert the efforts of Ericsson’s management and/or technical personnel. IPR disputes are complex and often take many years to resolve, with parties pursuing remedies across multiple forums and jurisdictions. Interim judgements and verdicts are common and not necessarily indicative of the ultimate outcome. As a result of litigation, Ericsson could be required to pay damages and other compensation directly or to indemnify Ericsson’s customers for such damages and other compensation, develop non-infringing products/technology or enter into royalty or licensing agreements. However, the Company cannot be certain that such licenses will be available to the Company on commercially reasonable terms or at all, and such judgments could have a material adverse effect on Ericsson’s business, reputation, operating results and financial condition. Using free and open-source software may allow third parties to further investigate the Company’s software due to the accessibility of source code. This may in turn make this software more prone to assertions from third parties.

Investigations held by antitrust authorities, court judgments and legislative change could potentially affect Ericsson’s ability to benefit from its patent portfolio when licensing patents necessary to conduct an open standard (e.g. 4G and 5G technology), which could have a material adverse effect on Ericsson’s business, reputation, operating results and financial condition. Ericsson holds a leading patent portfolio in open standards, and possible changes regarding such a portfolio may materially affect Ericsson’s reputation, business, operating results and financial condition.

Ericsson’s ability to benefit from IPRs may be limited by the loss of patent licenses to or from third parties. Patent licensing agreements are generally multi-year and term based and the process for renewal of these licenses normally requires negotiations, particularly in conjunction with technology shifts and the introduction of new standards, such as 5G. Such renewals and negotiations may take time to resolve, sometimes involve litigation and may have material adverse impacts on Ericsson’s business and financial position, including on the timing for and level of revenues from the IPR licensing contract portfolio.

Challenging global economic conditions and political unrest and uncertainty, geopolitical risks and trade frictions may increase the uncertainty around the direction of the global cellular eco-systems and standards, which could have adverse effects on Ericsson’s IPR licensing revenues as well as on the ability to acquire licenses.

Ericsson is subject to certain US, UK and other anti-corruption (including anti-bribery, anti-money-laundering, sanctions, terror finance and anti-terrorism) laws, rules and regulations and other regulatory requirements or conditions in other jurisdictions, or imposed as a result of foreign direct investment reviews and decisions. Ericsson may be subject to further adverse consequences under the injunction issued in connection with the 2019 settlement with the SEC, as well as other investigations by governmental authorities.

As mentioned in the Annual Report 2023, including in the risk factor 3.3, Ericsson is, from time to time, involved in legal proceedings and regulatory investigations, and is subject to certain other regulatory requirements, conditions and agreements. If any of these lawsuits or legal proceedings are determined unfavorably against the Company or it is determined that the Company is not in compliance with any of these regulatory requirements, conditions or agreements, the Company could be required to pay substantial damages, fines and/or penalties, be subject to public scrutiny, negative reputational consequences, or become subject to additional enforcement actions, regulatory review and/or adverse decisions. Ericsson could face potential debarment from government contracting in the United States and elsewhere, reputational risk, as well as potential counterparty reluctance to continue business relationships. In addition, these ongoing matters and investigations require significant resources and costs for investigation, compliance and remediation that could lead to adverse financial and reputational consequences.

For example, in connection with the acquisition of Vonage by Ericsson, and as a condition to Committee on Foreign Investment in the United States’ (“CFIUS”) approval of the acquisition, Vonage, Ericsson and the DOJ and the US Department of the Treasury, in their capacity as CFIUS monitoring agencies (“CMAs”), entered into a National Security Agreement (“NSA”) in July 2022, which imposes restrictions on access to certain types of sensitive data, equipment and systems. Vonage and Ericsson are engaged and cooperating with the CMAs in relation to ongoing compliance with the NSA restrictions, related remediation efforts to address concerns raised by the CMAs regarding such access, and the CMAs’ requests for information. The ongoing compliance efforts and related remediation have required changes to the Vonage business, including reduction and cessation of operations in certain jurisdictions. Further changes may be required which could adversely affect the Vonage business, including changes to business structure and additional compliance measures with associated costs. The CMAs review of integrations and connections of Ericsson and Vonage technologies could also increase our time to market. Vonage and Ericsson continue to cooperate with the CMAs in investigating historic and ongoing compliance with the terms of the NSA. The ultimate outcome of these investigations remains uncertain. Violations of a CFIUS mitigation agreement, such as the NSA, can result in an enforcement action imposing monetary penalties or other remedies. CFIUS has increased its resources and focus on enforcement and has recently imposed major financial penalties for violations of mitigation agreements involving unauthorized access to sensitive data and failure to report such incidents promptly to CFIUS.

As previously reported, the Company reached a resolution (Plea Agreement) in March 2023 with the DOJ regarding the non-criminal breaches of its DPA. Under the Plea Agreement, Ericsson pleaded guilty to previously deferred charges relating to conduct prior to 2017. In addition, Ericsson agreed to pay a fine of USD 206.7 million. The entry of the Plea Agreement brought the DPA to an end. On June 3, 2024, Ericsson announced the conclusion of the work and term of the independent compliance monitor originally appointed by the DOJ in June of 2020 in connection with the DPA. The monitorship and Plea Agreement concluded on June 2, 2024.

In addition, as previously reported, in June 2022, the SEC informed Ericsson that it opened an investigation concerning matters described in the Company’s 2019 internal Iraq investigation

report. Under Ericsson’s consent judgment with the SEC, Ericsson is permanently enjoined from violating the anti-bribery, books and records and internal controls provisions in the FCPA. Violations of the injunction, consent judgment or securities law could subject the Company to new civil and criminal penalties as well as new enforcement actions. On September 26, 2024, the SEC Staff informed Ericsson that it had concluded its investigation into Ericsson and that based on the information the SEC Staff has to date, the SEC Staff does not intend to recommend an enforcement action by the SEC against Ericsson.

The Company’s 2019 internal Iraq investigation did not conclude that Ericsson made or was responsible for any payments to any terrorist organization. With respect to the matters discussed in the 2019 internal Iraq investigation report, the Company continues to investigate these matters and related matters in full cooperation with the DOJ. As additional information continues to be identified and evaluated during the ongoing investigations in continued cooperation with the DOJ, it is expected that there will not be any conclusive determinations on the outcome until the investigation is completed. The scope and duration of the investigation remains uncertain.

Ericsson is required to comply with anti-corruption and anti-bribery laws in the jurisdictions in which it operates, including the FCPA, the UK Bribery Act (the “Bribery Act”) and other similar laws in other countries in which the Company does business. As a result of doing business in foreign countries, including through channel partners and agents, Ericsson is exposed to risks of violating anti-corruption laws. As a company that operates in certain regulated sectors, Ericsson deals with both governments and state-owned business enterprises, the employees of which are often considered foreign officials for purposes of the FCPA and other applicable anti-bribery legislation. Some of the international locations in which Ericsson operates have developing legal systems and may have higher levels of corruption than more developed jurisdictions. Actual or alleged non-compliance with anti-corruption laws and other laws governing the conduct of business with government entities and/or officials (including local laws) could subject Ericsson to criminal and civil penalties and other remedial measures, which could have a material adverse effect on Ericsson, including its reputation, business, financial condition, operating results, cash flows or prospects.

For additional information regarding certain of the legal proceedings and inquiries in which Ericsson is involved, see “Legal proceedings” in the Board of Directors’ Report in the Ericsson Annual Report 2023.

Stockholm, October 15, 2024

Telefonaktiebolaget LM Ericsson

Börje Ekholm, President and CEO

Org. No. 556016-0680

Date for next report: January 24, 2025

Media and analyst briefing

Ericsson invites media, investors and analysts to a conference call and live video webcast at 09:00 AM CEST on October 15, 2024.

Link to the webcast, dial-in to audio conference, supporting material and replay will be available at:

www.ericsson.com/investors and

www.ericsson.com/newsroom

For further information, please contact:

Lars Sandström, Senior Vice President, Chief Financial Officer

Phone: +46 72 161 20 04

E-mail: investor.relations@ericsson.com

Stella Medlicott, Senior Vice President, Chief Marketing and Communications Officer

Phone: +46 73 095 65 39

E-mail: media.relations@ericsson.com

Telefonaktiebolaget LM Ericsson

Org. number: 556016-0680

Torshamnsgatan 21

SE-164 83 Stockholm

Phone: +46 10 719 00 00

www.ericsson.com

Investors

Daniel Morris, Vice President,

Head of Investor Relations

Phone: +44 7386 657217

E-mail: investor.relations@ericsson.com

Lena Häggblom, Director,

Investor Relations

Phone: +46 72 593 27 78

E-mail: lena.haggblom@ericsson.com

Alan Ganson, Director,

Investor Relations

Phone: +46 70 267 27 30

E-mail: alan.ganson@ericsson.com

Media

Ralf Bagner, Head of Media Relations

Phone: + 46 76 128 47 89

E-mail: media.relations@ericsson.com

Corporate Communications

Phone: +46 10 719 69 92

E-mail: media.relations@ericsson.com

This report includes forward-looking statements. All statements other than statements of historical fact are forward-looking statements. The words “believe,” “expect,” “foresee,” “anticipate,” “assume,” “intend,” “likely,” “projects,” “may,” “could,” “plan,” “estimate,” “forecast,” “will,” “should,” “would,” “predict,” “aim,” “ambition,” “seek,” “potential,” “target,” “might,” “continue,” or, in each case, their negative or variations, and similar words or expressions are used to identify forward-looking statements. These statements are subject to risks and uncertainties that could cause actual results to differ materially and adversely from those expressed in, or implied or projected by, the forward-looking statements, including, in particular the following:

These forward-looking statements also represent our estimates, assumptions and expectations only as of the date that they were made, and to the extent they represent third-party data, we have not undertaken to independently verify such third-party data and do not intend to do so. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements and are urged to carefully review and consider the various disclosures made in this report and in other documents we file from time to time with our regulators that disclose risks and uncertainties that may affect our business. We expressly disclaim a duty to provide updates to these forward-looking statements, and the estimates and assumptions associated with them, after the date of this report, except as required by applicable law or stock exchange regulations.

Introduction

We have reviewed the condensed interim financial information (interim report) of Telefonaktiebolaget LM Ericsson (publ.) as of September 30, 2024, and the nine months period then ended. The board of directors and the CEO are responsible for the preparation and presentation of the interim report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

Scope of review

We conducted our review in accordance with the International Standard on Review Engagements ISRE 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 would make us aware of all significant matters that might be identified in an audit. Therefore, the conclusion expressed based on a review does not give the same level of assurance as a conclusion expressed based on an audit.

Conclusion

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, October 15, 2024

Deloitte AB

Thomas Strömberg

Authorized Public Accountant