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

February 1, 2013

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 AND TO BE A PART THEREOF FROM THE DATE ON WHICH THIS REPORT IS FURNISHED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED.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/    NINA MACPHERSON
	Nina Macpherson
	Senior Vice President and
	General Counsel
By:	/s/    HELENA NORRMAN
	Helena Norrman
	Senior Vice President
	Corporate Communications

Date: February 1, 2013

CONTENTS
Financial Highlights	3
Segment Results	7
Regional Sales Overview	11
Market Data	13
Parent Company Information	13
Auditors’ Review Report	17
Editor’s Note	18
Financial Statements and Additional Information	20

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 and to be part thereof from the date on which this report is furnished, to the extent not superseded by documents or reports subsequently filed or furnished.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 fourth quarter and full year 2012 report, ADJUSTED for registration statement on Form F-3 (No. 333-180880)

January 31, 2013

Fourth quarter highlights

• Sales increased 5% YoY and 23% QoQ. Segment Networks sales increased 6% YoY driven mainly by North America. QoQ Networks sales grew 31%, primarily due to normal higher year-end business activity

• Net income SEK -6.3 (1.5) b. negatively impacted by a non-cash charge related to ST-Ericsson of SEK -8.0 b. as previously communicated and a reduction of deferred tax assets of SEK -0.5 b. related to lowered corporate tax rate in Sweden

• EPS diluted SEK -1.99 (0.36).

• Cash flow from operations increased to SEK 15.7 b. driven by reduced working capital.

Full year highlights

• Sales were flat YoY with growth in Global Services and Support Solutions, while Networks sales declined partly due to the 40% decline of CDMA equipment sales

• Net income SEK 5.9 (12.6) b. impacted positively by the Sony Ericsson gain of SEK 7.7 b. and negatively by the ST-Ericsson charge of SEK -8.0 b.

• EPS diluted SEK 1.78 (3.77).

• Cash flow from operations SEK 22.0 b.

• Dividend for 2012, proposed by board of Directors of SEK 2.75 (2.50) per share.

SEK b.	Q4 2012			Q4 2011			YoY Change			Q3 2012			QoQ Change			Full year 2012			Full year 2011			Full year Change
Net sales		66.9			63.7			5	%		54.6			23	%		227.8			226.9			0	%
Of which Networks		35.3			33.3			6	%		26.9			31	%		117.3			132.4			–11	%
Of which Global Services		28.0			27.0			4	%		24.3			15	%		97.0			83.9			16	%
Of which Support Solutions		3.6			3.4			6	%		3.3			9	%		13.5			10.6			26	%
Gross margin		31.1	%		30.2	%		—			30.4	%		—			31.6	%		35.1	%		—
Operating income excl JVs		4.8			4.1			17	%		3.7			30	%		22.2			21.7			2	%
Operating margin excl JVs		7.1	%		6.4	%		—			6.7	%		—			9.7	%		9.6	%		—
Of which Networks		8	%		8	%		—			5	%		—			6	%		13	%		—
Of which Global Services		6	%		6	%		—			8	%		—			6	%		7	%		—
Of which Support Solutions		8	%		0	%		—			14	%		—			9	%		–5	%		—
Operating income incl JVs		–3.8			2.2			—			3.1			—			10.5			17.9
Of which ST-Ericsson		–8.5			–0.8			—			–0.6			—			–11.7			–2.7			—
Income after financial items		–3.9			1.8			—			3.2			—			10.2			18.1
Net income		–6.3			1.5			—			2.2			—			5.9			12.6
EPS diluted, SEK		–1.99			0.36			—			0.67			—			1.78			3.77			–53	%
Cash flow from operations		15.7			5.5			187	%		7.0			125	%		22.0			10.0			121	%

1

COMMENTS FROM HANS VESTBERG, PRESIDENT AND CEO

“Our segments showed mixed developments during the year with strong growth in Global Services and Support Solutions, while Networks had a more challenging year. Support Solutions went from losses in 2011 into profitability and together with Global Services represented close to 50% of Group sales in 2012, compared to 42% in 2011,” says Hans Vestberg, President and CEO of Ericsson (NASDAQ:ERIC).

“During the year profitability was negatively impacted by operating losses in ST-Ericsson, the ongoing network modernization projects in Europe as well as the underlying business mix, with a higher share of coverage projects than capacity projects. With present visibility of customer demand, and with the current global economic development, underlying business mix is expected to gradually shift towards more capacity projects during the second half of 2013.

We ended the year with strong cash flow. The Board of Directors proposes a dividend for 2012 of SEK 2.75 (2.50) per share, an increase by 10%.

Throughout 2012 North America was our strongest market, driven by continued mobile broadband investments and demand for services. However, regions such as South East Asia and Oceania and Sub-Saharan Africa gradually improved during the year.

In the fourth quarter Networks sales recovered, despite continued expected decline in CDMA. Profitability in Networks improved sequentially due to higher sales and a higher share of software sales. Sales and profitability for Global Services and Support Solutions remained stable.

The quarter was negatively impacted by a non-cash charge related to ST-Ericsson. Following the announcement of STMicroelectronics’ intention to exit as a shareholder, Ericsson will explore various strategic options for ST-Ericsson assets. We believe that the modem technology, which we originally contributed to the JV, has a strategic value to the wireless industry.

The work to leverage our strength in the growth areas mobile broadband, managed services and operations and business support systems (OSS/BSS) has continued during the year, with both selective acquisitions and divestments. In addition, we completed the divestment of Sony Ericsson and introduced a new strategy for Support Solutions. Improving profitability, reducing costs and working capital remain high on the agenda also for 2013. While the macroeconomic and political uncertainty continues in certain regions the long-term fundamentals in the industry remain attractive and we are well positioned to continue to support our customers in a transforming ICT market,” concludes Vestberg.

Ericsson Fourth Quarter Report 2012 2

Financial Highlights - fourth quarter

Sales in the quarter increased 5% YoY and 23% 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 increased 6% YoY, primarily driven by North America where sales in the second half 2011 were slower. CDMA equipment sales were down -18% YoY to SEK 2.5 b. in the quarter. Networks sales increased 31% QoQ due to high year-end business activity. CDMA equipment sales increased 58% QoQ, primarily due to temporary capacity needs but are expected to continue to decline as North American operators continue their transition to LTE.

Global Services grew 4% YoY and 15% QoQ. Global Services represented 42% (42%) of Group sales in the quarter, compared to 45% in Q312.

Support Solutions sales grew 6% YoY and 9% QoQ. IPX was divested in Q312 impacting sales growth QoQ negatively. Q411, multimedia brokering (IPX) sales amounted to SEK 0.4 b.

Restructuring charges for the Group amounted to SEK 1.7 (0.7) b. This was mainly related to execution of the service delivery strategy, costs of SEK 0.3 b. related to the divestment of GPON assets as well as continued execution of efficiency measures.

Gross margin increased YoY to 31.1% (30.2%), and from 30.4% Q312. The YoY increase was driven by higher Networks sales. The QoQ improvement is due to increased software share and lower Global Services share.

The underlying business mix, with higher share of coverage projects than capacity projects, is expected to shift towards more capacity projects in the second half of 2013. The negative impact from the network modernization projects in Europe will continue to gradually decline during 2013.

Total operating expenses increased YoY by SEK 0.8 b. to SEK 16.4 (15.6) b. due to higher restructuring charges. QoQ expenses increased SEK 3.1 b. partly driven by restructuring charges. R&D expenses amounted to SEK 9.2 (8.7) b. Selling and general administrative expenses (SG&A) increased YoY to SEK 7.1 (6.8) b. due to acquisitions.

Other operating income and expenses amounted to SEK 0.3 (0.4) b.

Operating margin was 7.1% (6.4%) compared to 6.7% in Q312. The YoY margin improvement was driven by increased Networks sales. This was partly offset by continued efficiency measures generating restructuring charges with a negative impact on operating margin by close to -3%-points (-1%). The QoQ margin improvement was mainly driven by higher sales in Networks and improved gross margin, partly offset by higher operating expenses and restructuring charges.

Ericsson’s share in ST-Ericsson’s income before tax was SEK -8.5 (-0.8) b. This includes the non-cash charge of SEK -8.0 b. for the write-down of all related investments, including provisions of SEK -3.3 b. related to the strategic options at hand for ST-Ericsson assets, as well as Ericsson’s share of ST-Ericsson Q412 operating loss of SEK -0.5 (-0.8) b.

Financial net amounted to SEK -0.1 (-0.3) b. and decreased QoQ from SEK 0.1 b.

Taxes were SEK -2.4 (-0.3) b. The effective tax rate was impacted by the write-down of investments and a provision related to ST-Ericsson of SEK 3.3 b. which are not subject to

Ericsson Fourth Quarter Report 2012 3

taxation. The corporate tax in Sweden was reduced from 26.3% to 22.0% as of January 1, 2013. This resulted in a reduction of deferred tax assets of SEK -0.5 b., which together with the market mix in the quarter impacted tax cost negatively.

Net income decreased to SEK -6.3 (1.5) b. negatively impacted by the ST-Ericsson charge of SEK -8.0 b.

EPS diluted was SEK -1.99 (0.36).

Cash flow from operations was positive SEK 15.7 (5.5) b., driven by reduced working capital. Cash outlays for restructuring amounted to SEK 0.3 (0.5) b. Cash outlays of SEK 1.2 b. remain to be made from the restructuring provision.

BALANCE SHEET AND OTHER PERFORMANCE INDICATORS - FOURTH QUARTER

Trade receivables increased QoQ to SEK 63.7 (61.6) b., driven by strong sales. This was partly offset by good collections and resulted in a decrease of days sales outstanding (DSO) from 101 to 86 days QoQ.

Inventory decreased QoQ to SEK 28.8 (32.4) b., positively impacted by higher sales. Inventory turnover days (ITO) improved from 82 to 73 days. Payable days have decreased from 59 to 57 days.

Cash, cash equivalents and short-term investments amounted to SEK 76.7 (68.8) b.

During the quarter, approximately SEK 1.0 b. of provisions were utilized, of which SEK 0.3 b. related to restructuring. Additions of SEK 4.6 b. were made, of which SEK 3.3 b. related to ST-Ericsson and SEK 0.6 b. related to restructuring. Reversals of SEK 0.2 b. were made.

The total number of employees at the end of the quarter increased to 110,255 (109,214). The increase is mainly due to addition of service professionals, primarily in India.

Financial Highlights - full year

Full year sales were SEK 227.8 b. and flat compared to 2011. CDMA equipment sales declined by
 -40% to SEK 8.4 (14.0) b. The acquired Telcordia operation added sales of SEK 4.2 b., split 50/50 between segments Global Services and Support Solutions. Revenues for IPR and licensing were SEK 6.6 (6.2) b.

Software represented 23% (23%), hardware 35% (40%) and services 42% (37%) of total sales in 2012 reflecting the good momentum in Services throughout the year, the reduced CDMA infrastructure business as well as network modernization projects in Europe.

Restructuring charges for the Group amounted to SEK 3.4 (3.2) b., mainly related to continued execution of the service delivery strategy and other ongoing cost reduction measures. The ongoing redundancy process in Sweden is expected to be finalized in Q1 2013, pending closing of union negotiations.

Gross margin was down for the full year to 31.6% (35.1%). The decrease is due to higher proportion of coverage projects than capacity projects, network modernization projects in Europe as well as the increased share of Global Services sales. Close to 50% of the gross margin decline is related to the increased services share.

Total operating expenses amounted to SEK 58.9 (59.3) b. R&D expenses amounted to SEK 32.8 (32.6) b. and increased due to higher restructuring charges and acquisitions. R&D

Ericsson Fourth Quarter Report 2012 4

expenses for the full year 2012 were estimated at SEK 30-32 b. Based on current portfolio and efficiencies in ways of working, R&D expenses for 2013 are expected to decrease somewhat. Selling and general administrative expenses (SG&A) amounted to SEK 26.0 (26.7) b. in 2012.

Other operating income and expenses were SEK 9.0 (1.3) b. of which the gain related to the divestment of Sony Ericsson amounted to SEK 7.7 b and Multimedia brokering (IPX) amounted to SEK 0.2 b.

Operating margin was 9.7% (9.6%). Excluding the gain related to the divestment of Sony Ericsson operating margin was 6.4%, negatively impacted by the business mix, with higher share of coverage projects than capacity projects, and network modernization projects in Europe.

Ericsson’s share in earnings of JV and associated companies was SEK -11.7 (-3.8) b., negatively impacted by the ST-Ericsson charge. Financial net amounted to SEK -0.3 (0.2) b. mainly due to negative currency exchange revaluation effects on financial investments and liabilities.

The tax rate for 2012 was 42% (31%), negatively impacted by product and market mix, and the change in corporate tax rate in Sweden. The one time items related to the ST-Ericsson charge and the gain from the Sony Ericsson divestment had no impact on taxes.

Net income decreased to SEK 5.9 (12.6) b. due to lower contribution from Networks and the negative impact from ST-Ericsson of SEK -11.7 (-2.7) b. The gain related to the divestment of Sony Ericsson of SEK 7.7 b. had a positive effect on net income.

EPS diluted amounted to SEK 1.78 (3.77).

The Board of Directors proposes a dividend for 2012 of SEK 2.75 (2.50), reflecting earnings and balance sheet structure in 2012, as well as coming years’ business plan and expected economic development, according to Ericsson’s dividend policy.

Cash flow from operations was positive at SEK 22.0 (10.0) b., driven by improved working capital.

Ericsson Fourth Quarter Report 2012 5

BALANCE SHEET AND OTHER PERFORMANCE INDICATORS - FULL YEAR

Compared to December 31, 2011, trade receivables decreased to SEK 63.7 (64.5) b. Days sales outstanding (DSO) decreased from 91 to 86 days.

Inventory decreased to SEK 28.8 (33.1) b., positively impacted by higher sales. Inventory turnover days (ITO) decreased from 78 to 73 days. Accounts payable days has decreased from 62 to 57 days.

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

• Issued a USD denominated 1 b. 10-year bond

• Borrowed EUR 150 million from the Nordic Investment Bank divided in two loans 7 and 9 years respectively

• Signed a 7-year loan facility with the European Investment Bank of EUR 500 million, with disbursement within 18 months

• Repurchased EUR 441 million of the 2013 and 2014 EMTN Eurobonds

• Repaid SEK 3.5 b. of Swedish bonds.

Cash, cash equivalents and short-term investments amounted to SEK 76.7 (80.5) b.

For the full year, the net number of employees increased by 5,730 to 110,255 (104,525), of which 3,766 in services and 1,659 in R&D. In 2012, 4,552 people joined Ericsson through acquisitions and through managed services contracts.

Ericsson Fourth Quarter Report 2012 6

Segment Results

NETWORKS

SEK b.	Q4 2012			Q4 2011			YoY Change			Q3 2012			QoQ Change			Full year 2012			Full year 2011			Change
Network sales		35.3			33.3			6	%		26.9			31	%		117.3			132.4			–11	%
Operating margin		8	%		8	%		—			5	%		—			6	%		13	%		—

FOURTH QUARTER

The increase is mainly related to high year-end business activity in North America and Japan, primarily within mobile broadband infrastructure. CDMA equipment sales declined -18% YoY to SEK 2.5 b. GSM sales in China continued to decline YoY. North America showed good development both YoY and QoQ. The sales increase QoQ of 31% is due to high year-end sales, 3G sales in China, LTE sales in South Korea and high project activity in parts of Western Europe. CDMA equipment sales grew by 58% QoQ due to temporary capacity needs. CDMA equipment sales are expected to continue to decline following North American operators’ transition to LTE.

Ericsson’s leading position in packet core has driven market demand for the Smart Services Router (SSR). 19 new contracts were signed in the quarter. Demand for microwave transport is regaining traction as mobile broadband continues to grow. In the quarter Ericsson also put the world’s first converged multi-standard radio base station for LTE FDD/TDD into commercial operation.

Operating margin was flat YoY. The positive effect from higher sales was partly offset by higher restructuring charges. The improved operating margin QoQ was primarily due to higher sales including temporary CDMA capacity business.

FULL YEAR

North America grew despite the -40% decline in CDMA equipment sales. During 2012 we saw good contribution from our IP portfolio, particularly packet core.

Operators’ focus on improving network performance and on service differentiation has been a main driver for mobile broadband investments throughout the year. The demand for IMS is increasing as operators are preparing for launching Voice over LTE (VoLTE). With increasing data traffic in the LTE networks the need for signaling capacity increases. The demand for circuit-switched core continues to decline.

Operating margin decreased to 6% (13%), adversely affected by lower sales, higher share of coverage than capacity projects and network modernization projects in Europe.

Ericsson Fourth Quarter Report 2012 7

GLOBAL SERVICES

SEK b.	Q4 2012			Q4 2011			YoY Change			Q3 2012			QoQ Change			Full year 2012			Full year 2011			Change
Global Services sales		28.0			27.0			4	%		24.3			15	%		97.0			83.9			16	%
Of which Professional Services		18.9			18.1			4	%		16.4			15	%		67.1			58.8			14	%
Of which Managed Services		6.8			6.0			12	%		6.3			7	%		25.2			21.0			20	%
Of which Network Rollout		9.2			8.9			3	%		7.9			16	%		30.0			25.1			20	%
Operating margin		6	%		6	%		—			8	%		—			6	%		7	%		—
Of which Professional Services		15	%		14	%		—			14	%		—			14	%		13	%		—
Of which Network Rollout		–11	%		–10	%		—			–6	%		—			–10	%		–8	%		—

FOURTH QUARTER

Operators continue to focus on increasing their operational efficiency and reducing operating expenses through transformation activities in the voice, IP and OSS/BSS domains, which drive demand for professional services. The QoQ sales growth of 15% was driven by Consulting and Systems Integration as well as Network Rollout.

Professional Services shows improved margin development due to continued efficiency gains and higher sales. The low margin in Network Rollout continued in the quarter and is related to network modernization projects in Europe and coverage projects.

FULL YEAR

Global Services sales grew by SEK 13.2 b. Growth in Global Services was driven by high Network Rollout sales and continued good momentum in Managed Services and Consulting and Systems Integration.

Global Services sales represented 43% (37%) of Group sales. Operating margin was 6% (7%). The decrease is due to Network Rollout where margins dropped to -10% (-8%) as a consequence of the European modernization projects. Professional Services operating margin was 14% (13%), driven by increased sales and efficiency improvements.

Ericsson supports networks with more than 2.5 billion subscribers. The strategy to industrialize the service delivery continues and the number of services professionals increased with hiring of new employees mainly in the Global Service Centers.

Other information	Q4 2012		Q3 2012		Q2 2012		Q1 2012		Full year 2012		Full year 2011
No. of signed managed services contracts		15		11		17		9		52		70
Of which expansions/extensions		5		5		5		4		19		32
No. of signed significant consulting & systems integration contracts1)		8		3		7		6		24		34
Number of subscribers in networks managed by Ericsson, end of period 2)		~ 950 m.		~ 950 m.		> 900 m.		> 900 m.		~ 950 m.		900 m.
Of which in network operations contracts		550 m.		550 m.		500 m.		500 m.		550 m.		500 m.
Number of Ericsson services professionals, end of period		60,000		59,000		57,000		57,000		60,000		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 Fourth Quarter Report 2012 8

SUPPORT SOLUTIONS

SEK b.	Q4 2012			Q4 2011			YoY Change			Q3 2012			QoQ Change			Full year 2012			Full year 2011			Change
Support Solutions sales		3.6			3.4			6	%		3.3			9	%		13.5			10.6			26	%
Operating margin		8	%		0	%		—			14	%		—			9	%		–5	%		—

FOURTH QUARTER

The acquired Telcordia operation added sales of SEK 0.6 b. in the quarter. Multimedia brokering (IPX) was divested in Q312 which impacted sales negatively both YoY and QoQ. IPX sales amounted to SEK 0.4 b in Q411. Demand for OSS/BSS continued to be strong, driven by operators’ focus to improve efficiency and adapt to mobile broadband business requirements.

Operating margin increased YoY, positively impacted by portfolio streamlining and efficiencies. Operating margin declined QoQ, due to higher restructuring charges and a gain of SEK 0.2 b. in Q312 related to the divestment of IPX.

FULL YEAR

Increased sales and execution on the new strategy, announced in Q1 2012, as well as portfolio streamlining and efficiency improvements, generated an operating margin of 9% (-5%).

The number of subscriptions served by Ericsson’s charging and billing solutions was 2.0 billion at the end of the year.

Ericsson Fourth Quarter Report 2012 9

ST-ERICSSON

Ericsson Group asset overview ST-Ericsson

USD m.	Q4 2012		Q4 2011		YoY Change			Q3 2012		QoQ Change
Net sales		358		409		–12	%		359		0	%
Operating income 2)		–169		–241		30	%		–174		3	%

²⁾ Q412 excluding USD 1,531 million gain from shareholders’ debt forgiveness and USD 1,060 million charges for impairment of goodwill and intangible assets.

ST-Ericsson sales were flat QoQ reflecting growth contribution from the NovaThor platform shipments as well as IP licensing. During the quarter, Ericsson and STMicroelectronics waived their credit of USD 1.5 b. under the parents’ loan facility. There was no remaining net debt at the end of the quarter. At the end of Q312 the net debt was USD 1.4 b. ST-Ericsson is reporting in US GAAP.

SEK m.	March 31, 2012		June 30, 2012		Sep 30, 2012		Dec 31, 2012
Investment in ST-Ericsson		1,982		767		195		0
Loans to ST-Ericsson		3,241		4,311		4,538		0
Total		5,223		5,078		4,733		0

On December 10, 2012, STMicroelectronics announced its intention to exit as a shareholder in ST-Ericsson. On December 20, 2012, Ericsson announced that it would take a non-cash charge in Q412 related to its 50% stake in ST-Ericsson. The charge includes write-down of investments to reflect the current best estimate of Ericsson’s share of the fair market value of the JV and provisions related to the strategic options at hand for ST-Ericsson assets. In total, Ericsson has made write-downs of SEK -4.7 b. of ST-Ericsson investments and taken a provision of SEK -3.3 b. In addition, Ericsson’s share in ST-Ericsson’s operating loss amounted to SEK -0.5 (-0.8) b.

As of December 31, 2012 there are no remaining investments related to ST-Ericsson on Ericsson’s balance sheet. Costs and cash related to implementation of strategic options at hand will be booked against provisions.

Ericsson Fourth Quarter Report 2012 10

Regional sales Overview

	Fourth quarter 2012																Growth
	Net-		Global		Support				Growth						Full  year 2012
SEK b.	works		Services		Solutions		Total		YoY			QoQ
North America		9.4		6.8		0.8		17.0		51	%		21	%		56.7		16	%
Latin America		2.9		3.2		0.4		6.5		–7	%		20	%		22.0		0	%
Northern Europe and Central Asia		1.6		1.2		0.2		3.0		–21	%		11	%		11.3		–25	%
Western and Central Europe		2.3		2.9		0.2		5.4		3	%		50	%		17.5		–8	%
Mediterranean		2.8		4.1		0.3		7.1		–14	%		31	%		23.3		–2	%
Middle East		2.5		2.1		0.5		5.1		–3	%		39	%		15.6		1	%
Sub-Saharan Africa		2.0		1.2		0.3		3.6		11	%		27	%		11.3		12	%
India		0.9		0.6		0.1		1.6		5	%		–8	%		6.5		–34	%
China and North East Asia		6.5		3.6		0.1		10.2		–6	%		22	%		36.2		–5	%
South East Asia and Oceania		2.5		1.9		0.1		4.5		13	%		29	%		15.1		9	%
Other1)		2.0		0.4		0.6		3.0		–10	%		–10	%		12.3		15	%
Total		35.3		28.0		3.6		66.9		5	%		23	%		227.8		0	%

¹⁾  Region “Other” includes licensing revenues, sales of cables, broadcast services, power modules and other businesses.

In the regional dimension, all of the Telcordia sales are reported in the Support Solutions segment except for North America where it is split 50/50 between Global Services and Support Solutions. The acquired Technicolor Broadcast Service Division is reported in region “Other”. Multimedia brokering (IPX) was previously reported in each region in segment Support Solutions. For the first three quarters 2012 it was part of region “Other”. Multimedia brokering (IPX) was divested end Q312.

North America. All segments grew both YoY and QoQ driven by continued high activity levels in coverage projects. CDMA sales continue to wind down, but at a slower pace in the quarter due to temporary capacity needs.

Coverage, consolidation and network evolution were market priorities throughout 2012, driving strong performance across all segments.

Latin America. Networks and Global Services business slowed down YoY due to low initial LTE deployment. Global Services sales increased QoQ driven by managed services and systems integration. The sequential increase in Networks was driven by 3G sales. OSS/BSS and IPTV contributed to the YoY growth in Support Solutions.

During 2012 all major operators decided on LTE suppliers, resulting in an estimated market share for Ericsson of more than 50%.

Northern Europe and Central Asia. Networks sales were basically flat both YoY and QoQ, with continued low investment levels in Russia. Global Services declined YoY mainly due to large 3G rollout in Russia during 2011. Global Services growth QoQ was driven by systems integration sales. Support Solutions grew YoY and QoQ mainly through Content Delivery Network deployments.

Throughout the year the trend of lower investments, primarily in Russia, continued to impact sales negatively.

Western and Central Europe. The QoQ growth in Networks was driven by high project activity and ongoing modernization projects. OSS/BSS and systems integration drove sales in Global Services and Support Solutions.

Cautious operator investments caused a decline for the full year.

Ericsson Fourth Quarter Report 2012 11

Mediterranean. The YoY decline was driven by current market and macroeconomic conditions. The modernization projects are progressing according to plan. The QoQ improvement was driven by growth in all segments.

2012 was impacted by weak macro economy in many countries and cautious operator investments.

Middle East. Networks sales grew QoQ after several quarters of lower activity. OSS/BSS developed favorably both YoY and QoQ, driven by operators’ focus on quality and operational efficiency. Managed services showed good growth in the quarter and for the full year.

The political unrest in some countries continues and has negatively impacted operator investments during the year, leading to a flat sales development in 2012.

Sub-Saharan Africa. The sales increase YoY is driven by operator investments in Nigeria and South Africa. While 3G is increasing, the majority of sales is still related to 2G. Data traffic is growing across the region and LTE deployments have started with three networks launched in Southern Africa.

Following a slow 2011, sales in all segments in the region grew during 2012.

India. Continued low activity levels with operator investments only in certain areas. Data traffic is growing from a low base as smartphones and tablets become more affordable. Growth in Support Solutions YoY was driven by Telcordia.

The full year decrease is mainly due to large initial 3G deployments in the first three quarters of 2011.

China and North East Asia. Networks declined YoY, driven by continued lower sales of GSM in China as well as lower 3G sales in South Korea as operators transition to LTE. Global Services growth continued mainly driven by turnkey projects in Japan. Sequentially Networks grew, mainly driven by LTE expansions in Japan and South Korea as well as by 3G expansions in China.

Sales grew in Japan in 2012, however, not fully offsetting the lower sales of GSM in China and 3G in South Korea.

South East Asia and Oceania. Positive development both YoY and QoQ driven by continued momentum for data traffic, particularly in Indonesia. Global Services sales were also driven by deployments in Australia.

Full-year growth was driven by sales in Indonesia, underpinned by the Global Services performance in Australia and network deployments in Thailand and the Philippines.

Other. Multimedia Brokering (IPX) was divested at the end of Q312. Licensing revenues continued to show stable development YoY. Sales of broadcast services, cables, power modules and other businesses are also included in “Other”.

The full-year growth was driven by licensing revenues which increased to SEK 6.6 (6.2) b., the acquired Technicolor Broadcast Service Division that was consolidated in Q312 and Multimedia brokering (IPX) that was reported in Region “Other” for the first three quarters of the year.

Ericsson Fourth Quarter Report 2012 12

Market data

GROWTH RATES ARE BASED ON ERICSSON AND MARKET ESTIMATES

	Q4		Q4					FULL YEAR						Ericsson forecast
	2012		2011		Change			2010		2011		2012		2013
Mobile subscriptions, billion		~6.3		5.8		~9	%		5.1		5.8		~6.3		~6.8
Net additions, million		~140		165		~–15	%		650		650		~550		~500
Mobile broadband, billion 1)		~1.5		1.0		~50	%		0.6		1.0		~1.5		~2.1
Net additions, million		~125		120		~2	%		300		400		~500		~600

¹⁾ Mobile broadband includes handsets, tablets, mobile PCs and mobile routers 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 those previously reported, affecting comparison of net additions and total figures. For India we have changed measurement to VLR-subscribers to better reflect underlying growth. All figures are approximate.

Parent Company Information

Income after financial items was SEK -4.9 (6.4) b.

A write-down of the original investment in ST-Ericsson of SEK 8.6 b. was made during the quarter. This write-down does not have any impact on Group level. Another write-down was made including the short-term credit facility to ST-Ericsson of SEK 5.0 b. and a provision of SEK 3.3 b. relating to the strategic options at hand for ST-Ericsson assets. The total write-downs and provision relating to ST-Ericsson in the quarter amount to SEK 17.0 b.

Major changes in the Parent Company’s financial position for the year were; lower cash, cash equivalents and short-term investments of SEK 1.5 b., and increased current and non-current receivables from subsidiaries of SEK 7.2 b. At the end of the quarter, cash, cash equivalents and short-term investments amounted to SEK 57.4 (58.9) b.

In accordance with the conditions of the long-term variable remuneration program (LTV) for Ericsson employees, 2,419,296 shares from treasury stock were sold or distributed to employees during the fourth quarter. The holding of treasury stock at December 31, 2012, was 84,798,095 Class B shares.

DIVIDEND PROPOSAL

The Board of Directors will propose to the Annual General Meeting a dividend of SEK 2.75 (2.50) per share, representing some SEK 9.1 (8.2) b., and April 12, 2013, as the record day for payment of dividend. The dividend is reflecting 2012 year’s earnings and balance sheet structure, as well as coming years’ business plans and expected economic development.

Ericsson annual general meeting

The Annual General Meeting of shareholders will be held on April 9, 2013, 15.00 (CET) at Kistamässan in Kista, Stockholm, Sweden.

ANNUAL REPORT

The annual report will be made available on our website www.ericsson.com and at the Ericsson headquarters, Torshamnsgatan 23, Kista, Stockholm, Sweden, during the first weeks of March.

Ericsson Fourth Quarter Report 2012 13

Other Information

SAMSUNG LITIGATION

On November 27, 2012, Ericsson filed two patent infringement lawsuits in the US District Court for the Eastern District of Texas against Samsung. Ericsson seeks damages and an injunction. Ericsson also asked the Court to adjudge that Samsung breached its commitment to license any standard-essential patents it owns on fair, reasonable, and non-discriminatory terms and to declare Samsung’s allegedly standard essential patents to be unenforceable.

On November 30, 2012, Ericsson filed a complaint with the US International Trade Commission (ITC) seeking an exclusion order blocking Samsung from importing certain products into the US. The ITC instituted an investigation of Ericsson’s complaint on January 3, 2013.

On December 21, 2012, Samsung filed a complaint with the US International Trade Commission (ITC) seeking an exclusion order blocking Ericsson from importing certain products into the US. The ITC instituted an investigation of Samsung’s complaint on January 25, 2013.

REDUCTION OF NUMBER OF EMPLOYEES IN SWEDEN

On November 7, 2012, Ericsson informed its employees in Sweden about the plan to reduce its operations in Sweden by including a reduction of an estimated 1,550 positions. Union negotiations are ongoing and affected employees are expected to be informed during March 2013.

ON NEW POSITIONS

On November 19, 2012, Sara Mazur assumed the position as Vice President and Head of Ericsson Research. Prior to this Sara Mazur held the position as Head of Systems Management at Business Unit Networks.

On January 1, 2013, Mats H Olsson assumed the role as Senior Vice President Asia-Pacific. In this role he will continue to report to President and CEO Hans Vestberg and be a member of the Executive Leadership Team. Prior to this Mats H Olsson held the position as Head of region China and North East Asia.

On January 1, 2013, Rima Qureshi assumed the position as Senior Vice President Strategic Projects. In this role she will continue to report to President and CEO Hans Vestberg and be a member of the Executive Leadership Team. Rima Qureshi previously held the position as Head of Business Unit CDMA Mobile Systems which was transited into business unit Networks on January 1, 2013.

Effective April 1, 2013, Fredrik Jejdling will assume the position as head of region Sub-Saharan Africa. In this position Fredrik Jejdling will remain member of the Global Leadership Team. Fredrik Jejdling currently holds the position as head of region India.

Ericsson Fourth Quarter Report 2012 14

Post-closing events

SALE OF PATENTS TO UNWIRED PLANET

On January 10, 2013, Ericsson entered into an agreement with Unwired Planet whereby Ericsson will transfer 2,185 issued patents and patent applications to Unwired Planet. Ericsson will also contribute 100 additional patent assets annually to Unwired Planet commencing in 2014 through 2018. Unwired Planet will compensate Ericsson with certain ongoing rights in future revenues generated from the enlarged patent portfolio. Unwired Planet will also grant Ericsson a license to its patent portfolio.

ACQUISITION OF DEVOTEAM

On January 21, 2013, Ericsson announced its intention to acquire Devoteam Telecom & Media operations in France. Devoteam is a leader in Information and Communications Technology consulting with 5,000 employees in Europe, Middle East and Africa.

The acquisition is in line with Ericsson’s services strategy to broaden its IT capabilities.

Ericsson Fourth Quarter Report 2012 15

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 short-term for the Parent Company and the Ericsson Group include:

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

• Uncertainty regarding the financial stability of suppliers, for example due to lack of 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 build-outs 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;

• Implementation of the strategic options at hand for our joint venture ST-Ericsson and related capital need;

• 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 stringently monitors the compliance with all relevant trade regulations and trade embargos applicable to dealings with customers operating in countries where there are trade restrictions or trade restrictions are discussed. Moreover, Ericsson operates globally in accordance with Group policies and directives for business ethics and conduct.

Stockholm, January 31, 2013

Telefonaktiebolaget LM Ericsson (publ)

Hans Vestberg, President and CEO

Org. Nr. 556016-0680

Date for next report: April 24, 2013

Ericsson Fourth Quarter Report 2012 16

Editor’s Note

Ericsson invites media, investors and analysts to a press conference at the Ericsson Studio, Grönlandsgången 4, Stockholm, at 09.00 (CET), January 31, 2013. 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 or media.relations@ericsson.com

INVESTORS	MEDIA
Stefan Jelvin, Director,	Ola Rembe, Vice President,
Investor Relations	Head of Corporate Communications & PR
Phone: +46 10 714 2039	Phone: +46 10 719 9727
+46 709 860 227	+46 730 244 873
E-mail: investor.relations@ericsson.com	E-mail: media.relations@ericsson.com
Åsa Konnbjer, Director,	Corporate Communications & PR
Investor Relations	Phone: +46 10 719 69 92
Phone: +46 10 713 3928	E-mail: media.relations@ericsson.com
+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
Telefonaktiebolaget LM Ericsson (publ)
Org. number: 556016-0680
Torshamnsgatan 23
SE-164 83 Stockholm
Phone: +46 10 719 0000

Ericsson Fourth Quarter Report 2012 17

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 Fourth Quarter Report 2012 18

Financial Statements and Additional Information

Financial statements	Page
Consolidated income statement		20
Statement of comprehensive income		20
Consolidated balance sheet		21
Consolidated statement of cash flows		22
Consolidated statement of changes in equity		23
Consolidated income statement - isolated quarters		24
Consolidated statement of cash flows - isolated quarters		25
Additional information	Page
Accounting policies		26
Net sales by segment by quarter		27
Operating income by segment by quarter		28
Operating margin by segment by quarter		28
Net sales by region by quarter		29
Net sales by region by quarter (cont.)		30
Top 5 countries in sales		30
Net sales by region by segment		31
Provisions		32
Number of employees		32
Information on investments in assets subject to depreciation, amortization and impairment and write-downs		32
Other information		33
Restructuring charges by function		34
Restructuring charges by segment		34

Ericsson Fourth Quarter Report 2012 19

CONSOLIDATED INCOME STATEMENT

	Oct - Dec									Jan - Dec
SEK million	2011			2012			Change			2011			2012			Change
Net sales		63,667			66,936			5	%		226,921			227,779			0	%
Cost of sales		–44,463			–46,133			4	%		–147,200			–155,699			6	%
Gross income		19,204			20,803			8	%		79,721			72,080			–10	%
Gross margin (%)		30.2	%		31.1	%					35.1	%		31.6	%
Research and development expenses		–8,715			–9,247			6	%		–32,638			–32,833			1	%
Selling and administrative expenses		–6,837			–7,139			4	%		–26,683			–26,023			–2	%
Operating expenses		–15,552			–16,386			5	%		–59,321			–58,856			–1	%
Other operating income and expenses 1)		403			345						1,278			8,965
Operating income before shares in earnings of JV and associated companies		4,055			4,762			17	%		21,678			22,189			2	%
Operating margin before shares in earnings of JV and associated companies (%)		6.4	%		7.1	%					9.6	%		9.7	%
Shares in earnings of JV and associated companies		–1,899			–8,565			351	%		–3,778			–11,731			211	%
Operating income		2,156			–3,803			–276	%		17,900			10,458			–42	%
Financial income		405			438						2,882			1,708
Financial expenses		–732			–512						–2,661			–1,984
Income after financial items		1,829			–3,877			–312	%		18,121			10,182			–44	%
Taxes		–338			–2,378						–5,552			–4,244
Net income		1,491			–6,255			–520	%		12,569			5,938			–53	%
Net income attributable to:
- Stockholders of the Parent Company		1,154			–6,462						12,194			5,775
- Non-controlling interests		337			207						375			163
Other information
Average number of shares, basic (million)		3,209			3,219						3,206			3,216
Earnings per share, basic (SEK) 2)		0.36			–2.01						3.80			1.80
Earnings per share, diluted (SEK) 2)		0.36			–1.99						3.77			1.78

STATEMENT OF COMPREHENSIVE INCOME

	Oct - Dec				Jan - Dec
SEK million	2011		2012		2011		2012
Net income		1,491		–6,255		12,569		5,938
Other comprehensive income
Actuarial gains and losses, and the effect of the asset ceiling, related to pensions		211		800		–6,963		–451
Revaluation of other investments in shares and participations
Fair value remeasurement		1		4		—		6
Cash flow hedges
Gains/losses arising during the period		116		602		996		1,668
Reclassification adjustments for gains/losses included in profit or loss		355		–353		–2,028		–568
Adjustments for amounts transferred to initial carrying amount of hedged items		—		—		—		92
Changes in cumulative translation adjustments		–538		143		–964		–3,947
Share of other comprehensive income on JV and associated companies		–85		–463		–262		–486
Tax on items relating to components of other comprehensive income		95		–548		2,158		–422
Total other comprehensive income		155		185		–7,063		–4,108
Total comprehensive income		1,646		–6,070		5,506		1,830
Total comprehensive income attributable to:
Stockholders of the Parent Company		1,282		–6,284		5,081		1,716
Non-controlling interests		364		214		425		114

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 Fourth Quarter Report 2012 20

CONSOLIDATED BALANCE SHEET

SEK million	Dec 31 2011			Sep 30 2012			Dec 31 2012
ASSETS
Non-current assets
Intangible assets
Capitalized development expenses		3,523			3,964			3,840
Goodwill		27,438			30,319			30,404
Intellectual property rights, brands and other intangible assets		13,083			16,125			15,202
Property, plant and equipment		10,788			11,559			11,493
Financial assets
Equity in JV and associated companies		5,965			1,526			2,842
Other investments in shares and participations		2,199			2,010			386
Customer financing, non-current		1,400			1,331			1,290
Other financial assets, non-current		4,117			3,704			3,964
Deferred tax assets		13,020			13,506			12,321
		81,533			84,044			81,742
Current assets
Inventories		33,070			32,424			28,802
Trade receivables		64,522			61,562			63,660
Customer financing, current		2,845			2,703			4,019
Other current receivables		17,837			23,417			20,065
Short-term investments		41,866	1)		35,976	1)		32,026
Cash and cash equivalents		38,676			32,845			44,682
		198,816			188,927			193,254
Total assets		280,349			272,971			274,996
EQUITY AND LIABILITIES
Equity
Stockholders’ equity		143,105			143,079			136,883
Non-controlling interest in equity of subsidiaries		2,165			1,463			1,600
		145,270			144,542			138,483
Non-current liabilities
Post-employment benefits		10,016			9,732			9,503
Provisions, non-current		280			196			211
Deferred tax liabilities		2,250			3,604			3,120
Borrowings, non-current		23,256			22,910			23,898
Other non-current liabilities		2,248			2,513			2,377
		38,050			38,955			39,109
Current liabilities
Provisions, current		5,985			5,047			8,427
Borrowings, current		7,765			7,196			4,769
Trade payables		25,309			21,968			23,100
Other current liabilities		57,970			55,263			61,108
		97,029			89,474			97,404
Total equity and liabilities		280,349			272,971			274,996
Of which interest-bearing liabilities and post-employment benefits		41,037			39,838			38,170
Of which net cash		39,505			28,983			38,538
Assets pledged as collateral		452			538			520
Contingent liabilities		609			548			613

¹⁾  Including loan to ST-Ericsson of SEK 2,759 million as of December 31, 2011, SEK 4,538 million as of September 30, 2012

Ericsson Fourth Quarter Report 2012 21

CONSOLIDATED STATEMENT OF CASH FLOWS

	Oct - Dec				Jan - Dec
SEK million	2011		2012		2011		2012
Operating activities
Net income		1,491		–6,255		12,569		5,938
Adjustments to reconcile net income to cash
Taxes		752		2,049		1,994		–1,140
Earnings/dividends in JV and associated companies		1,817		8,707		3,710		11,769
Depreciation, amortization and impairment losses		2,428		2,779		9,036		9,889
Other		472		–366		–2,127		–7,441
		6,960		6,914		25,182		19,015
Changes in operating net assets
Inventories		5,208		3,418		–3,243		2,752
Customer financing, current and non-current		290		–1,377		74		–1,259
Trade receivables		565		–2,280		–1,700		–1,103
Trade payables		246		1,140		–1,648		–1,311
Provisions and post-employment benefits		–2,278		379		–5,695		–1,920
Other operating assets and liabilities, net		–5,524		7,497		–2,988		5,857
		–1,493		8,777		–15,200		3,016
Cash flow from operating activities		5,467		15,691		9,982		22,031
Investing activities
Investments in property, plant and equipment		–1,524		–1,326		–4,994		–5,429
Sales of property, plant and equipment		172		252		386		568
Acquisitions/divestments of subsidiaries and other operations, net 1)		–235		120		–3,128		–2,077
Product development		–560		–430		–1,515		–1,641
Other investing activities		–210		213		–900		1,540
Short-term investments		–1,533		–1,045		14,692		2,151
Cash flow from investing activities		–3,890		–2,216		4,541		–4,888
Cash flow before financing activities		1,577		13,475		14,523		17,143
Financing activities
Dividends paid		–5		1		–7,455		–8,632
Other financing activities		828		–1,609		961		–753
Cash flow from financing activities		823		–1,608		–6,494		–9,385
Effect of exchange rate changes on cash		14		–30		–217		–1,752
Net change in cash		2,414		11,837		7,812		6,006
Cash and cash equivalents, beginning of period		36,262		32,845		30,864		38,676
Cash and cash equivalents, end of period		38,676		44,682		38,676		44,682

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

Ericsson Fourth Quarter Report 2012 22

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

	Jan - Dec		Jan - Dec
SEK million	2011		2012
Opening balance		146,785		145,270
Total comprehensive income		5,506		1,830
Sale/Repurchase of own shares		92		–93
Stock issue		—		159
Stock Purchase Plan		413		405
Dividends paid		–7,455		–8,632
Transactions with non-controlling interests		–71		–456
Closing balance		145,270		138,483

Ericsson Fourth Quarter Report 2012 23

CONSOLIDATED INCOME STATEMENT - ISOLATED QUARTERS

	2011												2012
Isolated quarters, SEK million	Q1			Q2			Q3			Q4			Q1			Q2			Q3			Q4
Net sales		52,966			54,770			55,518			63,667			50,974			55,319			54,550			66,936
Cost of sales		–32,578			–34,064			–36,095			–44,463			–33,985			–37,611			–37,970			–46,133
Gross income		20,388			20,706			19,423			19,204			16,989			17,708			16,580			20,803
Gross margin (%)		38.5	%		37.8	%		35.0	%		30.2	%		33.3	%		32.0	%		30.4	%		31.1	%
Research and development expenses		–7,991			–8,108			–7,824			–8,715			–8,016			–8,097			–7,473			–9,247
Selling and administrative expenses		–6,441			–7,741			–5,664			–6,837			–6,232			–6,855			–5,797			–7,139
Operating expenses		–14,432			–15,849			–13,488			–15,552			–14,248			–14,952			–13,270			–16,386
Other operating income and expenses 1)		343			166			366			403			7,749			530			341			345
Operating income before shares in earnings of JV and associated companies		6,299			5,023			6,301			4,055			10,490			3,286			3,651			4,762
Operating margin before shares in earnings of JV and associated companies (%)		11.9	%		9.2	%		11.3	%		6.4	%		20.6	%		5.9	%		6.7	%		7.1	%
Shares in earnings of JV and associated companies		–468			–771			–640			–1,899			–1,403			–1,208			–555			–8,565
Operating income		5,831			4,252			5,661			2,156			9,087			2,078			3,096			–3,803
Financial income		302			977			1,198			405			262			618			390			438
Financial expenses		–306			–636			–987			–732			–273			–924			–275			–512
Income after financial items		5,827			4,593			5,872			1,829			9,076			1,772			3,211			–3,877
Taxes		–1,747			–1,377			–2,090			–338			–272			–567			–1,027			–2,378
Net income		4,080			3,216			3,782			1,491			8,804			1,205			2,184			–6,255
Net income attributable to:
- Stockholders of the Parent Company		4,103			3,116			3,821			1,154			8,950			1,110			2,177			–6,462
- Non-controlling interests		–23			100			–39			337			–146			95			7			207
Other information
Average number of shares, basic (million)		3,202			3,204			3,207			3,209			3,212			3,215			3,217			3,219
Earnings per share, basic (SEK) 2)		1.28			0.97			1.19			0.36			2.79			0.35			0.68			–2.01
Earnings per share, diluted (SEK) 2)		1.27			0.96			1.18			0.36			2.76			0.34			0.67			–1.99

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 Fourth Quarter Report 2012 24

CONSOLIDATED STATEMENT OF CASH FLOWS - ISOLATED QUARTERS

	2011								2012
Isolated quarters, SEK million	Q1		Q2		Q3		Q4		Q1		Q2		Q3		Q4
Operating activities
Net income		4,080		3,216		3,782		1,491		8,804		1,205		2,184		–6,255
Adjustments to reconcile net income to cash
Taxes		721		–29		550		752		–1,118		–1,185		–886		2,049
Earnings/dividends in JV and associated companies		452		783		658		1,817		1,290		1,193		579		8,707
Depreciation, amortization and impairment losses		2,209		2,172		2,227		2,428		2,315		2,401		2,394		2,779
Other		–1,201		–1,107		–291		472		–7,022		–466		413		–366
		6,261		5,035		6,926		6,960		4,269		3,148		4,684		6,914
Changes in operating net assets
Inventories		–3,462		–2,370		–2,619		5,208		–59		43		–650		3,418
Customer financing, current and non-current		196		195		–607		290		282		—		–164		–1,377
Trade receivables		–1,610		2,114		–2,769		565		3,722		–5,427		2,882		–2,280
Trade payables		–255		–834		–805		246		–2,713		1,717		–1,455		1,140
Provisions and post-employment benefits		–752		–485		–2,180		–2,278		–1,771		–353		–175		379
Other operating assets and liabilities, net		–3,284		2,126		3,694		–5,524		–2,999		–492		1,851		7,497
		–9,167		746		–5,286		–1,493		–3,538		–4,512		2,289		8,777
Cash flow from operating activities		–2,906		5,781		1,640		5,467		731		–1,364		6,973		15,691
Investing activities
Investments in property, plant and equipment		–980		–1,196		–1,294		–1,524		–1,648		–994		–1,461		–1,326
Sales of property, plant and equipment		97		58		59		172		309		–10		17		252
Acquisitions/divestments of subsidiaries and other operations, net 1)		–455		–507		–1,931		–235		–1,730		–110		–357		120
Product development		–269		–429		–257		–560		–251		–525		–435		–430
Other investing activities		179		–100		–769		–210		195		–520		1,652		213
Short-term investments		3,706		3,196		9,323		–1,533		–3,999		8,133		–938		–1,045
Cash flow from investing activities		2,278		1,022		5,131		–3,890		–7,124		5,974		–1,522		–2,216
Cash flow before financing activities		–628		6,803		6,771		1,577		–6,393		4,610		5,451		13,475
Financing activities
Dividends paid		—		–7,209		–241		–5		—		–8,252		–381		1
Other financing activities		1,240		–1,097		–10		828		–1,318		1,112		1,062		–1,609
Cash flow from financing activities		1,240		–8,306		–251		823		–1,318		–7,140		681		–1,608
Effect of exchange rate changes on cash		–720		211		278		14		–327		599		–1,994		–30
Net change in cash		–108		–1,292		6,798		2,414		–8,038		–1,931		4,138		11,837
Cash and cash equivalents, beginning of period		30,864		30,756		29,464		36,262		38,676		30,638		28,707		32,845
Cash and cash equivalents, end of period		30,756		29,464		36,262		38,676		30,638		28,707		32,845		44,682

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

Ericsson Fourth Quarter Report 2012 25

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

• 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 December 31, 2012 and IFRS as endorsed by the EU.

Estimated impact due to amendment of IAS 19 Employee Benefits as from January 1st, 2013

The main amendment of IAS 19 is that the corridor method is eliminated. The Company implemented on January 1^st 2006 the immediate and full recognition of actuarial gains/losses in other comprehensive income (OCI) meaning that the corridor method has not been applied by the Company as from that date.

Other main amendments of IAS 19 which impact the Company relate to:

• The implementation of the net interest expense/(income), which integrates the interest cost and expected return on assets to be based on the discount rate used to calculate the defined benefit obligation. An analysis of fiscal year 2012 in relation to this amendment indicates an impact on pension costs for 2012 with an increase of approximately SEK0.4 (-0,1) billion.

• The taxes to be incorporated into the defined benefit obligation and plan assets. This amendment relates to the Swedish special payroll taxes to be reclassified from other current liabilities to post-employment benefits with an estimated amount of SEK1.8 (1.8) billion as per 2012-12-31.

Ericsson Fourth Quarter Report 2012 26

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			Q3			Q4
Networks		33,249			33,360			32,506			33,280			27,314			27,766			26,939			35,266
Global Services		17,435			19,036			20,438			26,975			20,631			24,074			24,296			28,042
Of which Professional Services		12,571			13,463			14,719			18,081			14,884			16,947			16,388			18,873
Of which Managed Services		4,924			4,724			5,304			6,046			5,708			6,468			6,306			6,752
Of which Network Rollout		4,864			5,573			5,719			8,894			5,747			7,127			7,908			9,169
Support Solutions		2,282			2,374			2,574			3,412			3,029			3,479			3,315			3,628
Total		52,966			54,770			55,518			63,667			50,974			55,319			54,550			66,936
	2011												2012
Sequential change, percent	Q1			Q2			Q3			Q4			Q1			Q2			Q3			Q4
Networks		–9	%		0	%		–3	%		2	%		–18	%		2	%		–3	%		31	%
Global Services		–24	%		9	%		7	%		32	%		–24	%		17	%		1	%		15	%
Of which Professional Services		–25	%		7	%		9	%		23	%		–18	%		14	%		–3	%		15	%
Of which Managed Services		–8	%		–4	%		12	%		14	%		–6	%		13	%		–3	%		7	%
Of which Network Rollout		–21	%		15	%		3	%		56	%		–35	%		24	%		11	%		16	%
Support Solutions		–34	%		4	%		8	%		33	%		–11	%		15	%		–5	%		9	%
Total		–16	%		3	%		1	%		15	%		–20	%		9	%		–1	%		23	%
	2011												2012
Year over year change, percent	Q1			Q2			Q3			Q4			Q1			Q2			Q3			Q4
Networks		35	%		31	%		25	%		–9	%		–18	%		–17	%		–17	%		6	%
Global Services		–4	%		–5	%		7	%		18	%		18	%		26	%		19	%		4	%
Of which Professional Services		–5	%		–9	%		7	%		8	%		18	%		26	%		11	%		4	%
Of which Managed Services		1	%		–16	%		1	%		13	%		16	%		37	%		19	%		12	%
Of which Network Rollout		0	%		6	%		7	%		44	%		18	%		28	%		38	%		3	%
Support Solutions		–1	%		–2	%		11	%		–2	%		33	%		47	%		29	%		6	%
Total		17	%		14	%		17	%		1	%		–4	%		1	%		–2	%		5	%
	2011												2012
Year to date, SEK million	Jan - Mar			Jan - Jun			Jan - Sep			Jan - Dec			Jan - Mar			Jan - Jun			Jan - Sep			Jan - Dec
Networks		33,249			66,609			99,115			132,395			27,314			55,080			82,019			117,285
Global Services		17,435			36,471			56,909			83,884			20,631			44,705			69,001			97,043
Of which Professional Services		12,571			26,034			40,753			58,834			14,884			31,830			48,219			67,092
Of which Managed Services		4,924			9,648			14,952			20,998			5,708			12,176			18,482			25,234
Of which Network Rollout		4,864			10,437			16,156			25,050			5,747			12,875			20,782			29,951
Support Solutions		2,282			4,656			7,230			10,642			3,029			6,508			9,823			13,451
Total		52,966			107,736			163,254			226,921			50,974			106,293			160,843			227,779
Year to date,	2011												2012
year over year change, percent	Jan - Mar			Jan - Jun			Jan - Sep			Jan - Dec			Jan - Mar			Jan - Jun			Jan - Sep			Jan - Dec
Networks		35	%		33	%		30	%		17	%		–18	%		–17	%		–17	%		–11	%
Global Services		–4	%		–4	%		–1	%		5	%		18	%		23	%		21	%		16	%
Of which Professional Services		–5	%		–7	%		–3	%		1	%		18	%		22	%		18	%		14	%
Of which Managed Services		1	%		–8	%		–5	%		–1	%		16	%		26	%		24	%		20	%
Of which Network Rollout		0	%		3	%		5	%		16	%		18	%		23	%		29	%		20	%
Support Solutions		–1	%		–2	%		3	%		1	%		33	%		40	%		36	%		26	%
Total		17	%		16	%		16	%		12	%		–4	%		–1	%		–1	%		0	%

Ericsson Fourth Quarter Report 2012 27

OPERATING INCOME BY SEGMENT BY QUARTER

	2011								2012
Isolated quarters, SEK million	Q1		Q2		Q3		Q4		Q1		Q2		Q3		Q4
Networks		5,744		4,599		4,277		2,675		1,649		1,255		1,341		2,812
Global Services		1,146		1,030		1,757		1,611		1,267		1,362		1,835		1,762
Of which Professional Services		1,486		1,661		2,023		2,498		1,908		2,142		2,293		2,768
Of which Network Rollout		–340		–631		–266		–887		–641		–780		–458		–1,006
Support Solutions		–338		–267		90		11		–28		420		480		278
Unallocated 1)		–228		–204		164		–233		–97		–43		6		–133
Subtotal Segments excluding Sony Ericsson and ST-Ericsson		6,324		5,158		6,288		4,064		2,791		2,994		3,662		4,719
Sony Ericsson 2)		71		–208		75		–1,137		7,691		347		–1		–11
ST-Ericsson		–564		–698		–702		–771		–1,395		–1,263		–565		–8,511
Subtotal Sony Ericsson and ST-Ericsson		–493		–906		–627		–1,908		6,296		–916		–566		–8,522
Total		5,831		4,252		5,661		2,156		9,087		2,078		3,096		–3,803
	2011								2012
Year to date, SEK million	Jan - Mar		Jan - Jun		Jan - Sep		Jan - Dec		Jan - Mar		Jan - Jun		Jan - Sep		Jan - Dec
Networks		5,744		10,343		14,620		17,295		1,649		2,904		4,245		7,057
Global Services		1,146		2,176		3,933		5,544		1,267		2,629		4,464		6,226
Of which Professional Services		1,486		3,147		5,170		7,668		1,908		4,050		6,343		9,111
Of which Network Rollout		–340		–971		–1,237		–2,124		–641		–1,421		–1,879		–2,885
Support Solutions		–338		–605		–515		–504		–28		392		872		1,150
Unallocated 1)		–228		–432		–268		–501		–97		–140		–134		–267
Subtotal Segments excluding Sony Ericsson and ST-Ericsson		6,324		11,482		17,770		21,834		2,791		5,785		9,447		14,166
Sony Ericsson 2)		71		–137		–62		–1,199		7,691		8,038		8,037		8,026
ST-Ericsson		–564		–1,262		–1,964		–2,735		–1,395		–2,658		–3,223		–11,734
Subtotal Sony Ericsson and ST-Ericsson		–493		–1,399		–2,026		–3,934		6,296		5,380		4,814		–3,708
Total		5,831		10,083		15,744		17,900		9,087		11,165		14,261		10,458

OPERATING MARGIN BY SEGMENT BY QUARTER

	2011												2012
As percentage of net sales, isolated quarters	Q1			Q2			Q3			Q4			Q1			Q2			Q3			Q4
Networks		17	%		14	%		13	%		8	%		6	%		5	%		5	%		8	%
Global Services		7	%		5	%		9	%		6	%		6	%		6	%		8	%		6	%
Of which Professional Services		12	%		12	%		14	%		14	%		13	%		13	%		14	%		15	%
Of which Network Rollout		–7	%		–11	%		–5	%		–10	%		–11	%		–11	%		–6	%		–11	%
Support Solutions		–15	%		–11	%		3	%		0	%		–1	%		12	%		14	%		8	%
Subtotal excluding Sony Ericsson and ST-Ericsson		12	%		9	%		11	%		6	%		5	%		5	%		7	%		7	%
	2011												2012
As percentage of net sales, Year to date	Jan - Mar			Jan - Jun			Jan - Sep			Jan - Dec			Jan - Mar			Jan - Jun			Jan - Sep			Jan - Dec
Networks		17	%		16	%		15	%		13	%		6	%		5	%		5	%		6	%
Global Services		7	%		6	%		7	%		7	%		6	%		6	%		6	%		6	%
Of which Professional Services		12	%		12	%		13	%		13	%		13	%		13	%		13	%		14	%
Of which Network Rollout		–7	%		–9	%		–8	%		–8	%		–11	%		–11	%		–9	%		–10	%
Support Solutions		–15	%		–13	%		–7	%		–5	%		–1	%		6	%		9	%		9	%
Subtotal excluding Sony Ericsson and ST-Ericsson		12	%		11	%		11	%		10	%		5	%		5	%		6	%		6	%

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 Fourth Quarter Report 2012 28

NET SALES BY REGION BY QUARTER

	2011												2012
Isolated quarters, SEK million	Q1			Q2			Q3			Q4			Q1			Q2			Q3			Q4
North America		13,162			12,324			12,096			11,203			12,775			12,987			14,037			16,950
Latin America		4,015			4,927			6,012			7,028			4,822			5,243			5,424			6,517
Northern Europe & Central Asia 1) 2)		3,365			4,552			3,527			3,781			2,292			3,358			2,697			2,998
Western & Central Europe 2)		4,806			4,342			4,612			5,270			4,306			4,094			3,630			5,448
Mediterranean 2)		4,799			5,543			5,225			8,240			4,620			6,214			5,401			7,064
Middle East		3,070			3,546			3,650			5,195			3,157			3,701			3,637			5,061
Sub Saharan Africa		2,212			2,214			2,519			3,218			2,200			2,791			2,800			3,558
India		3,169			2,798			2,273			1,522			1,421			1,700			1,737			1,602
China & North East Asia		8,633			9,025			9,662			10,889			9,154			8,423			8,373			10,246
South East Asia & Oceania		3,108			3,033			3,720			4,009			3,374			3,674			3,505			4,515
Other 1) 2)		2,627			2,466			2,222			3,312			2,853			3,134			3,309			2,977
Total		52,966			54,770			55,518			63,667			50,974			55,319			54,550			66,936
1)        Of which Sweden		927			1,103			944			908			834			1,282			1,649			1,268
2)        Of which EU		10,020			10,317			10,195			13,428			9,502			11,201			10,604			12,923
	2011												2012
Sequential change, percent	Q1			Q2			Q3			Q4			Q1			Q2			Q3			Q4
North America		–6	%		–6	%		–2	%		–7	%		14	%		2	%		8	%		21	%
Latin America		–34	%		23	%		22	%		17	%		–31	%		9	%		3	%		20	%
Northern Europe & Central Asia 1) 2)		–30	%		35	%		–23	%		7	%		–39	%		47	%		–20	%		11	%
Western & Central Europe 2)		–19	%		–10	%		6	%		14	%		–18	%		–5	%		–11	%		50	%
Mediterranean 2)		–31	%		16	%		–6	%		58	%		–44	%		35	%		–13	%		31	%
Middle East		–34	%		16	%		3	%		42	%		–39	%		17	%		–2	%		39	%
Sub Saharan Africa		9	%		0	%		14	%		28	%		–32	%		27	%		0	%		27	%
India		11	%		–12	%		–19	%		–33	%		–7	%		20	%		2	%		–8	%
China & North East Asia		–9	%		5	%		7	%		13	%		–16	%		–8	%		–1	%		22	%
South East Asia & Oceania		–21	%		–2	%		23	%		8	%		–16	%		9	%		–5	%		29	%
Other 1) 2)		25	%		–6	%		–10	%		49	%		–14	%		10	%		6	%		–10	%
Total		–16	%		3	%		1	%		15	%		–20	%		9	%		–1	%		23	%
1)        Of which Sweden		–21	%		19	%		–14	%		–4	%		–8	%		54	%		29	%		–23	%
2)        Of which EU		–20	%		3	%		–1	%		32	%		–29	%		18	%		–5	%		22	%
	2011												2012
Year-over-year change, percent	Q1			Q2			Q3			Q4			Q1			Q2			Q3			Q4
North America		39	%		–6	%		–6	%		–20	%		–3	%		5	%		16	%		51	%
Latin America		1	%		17	%		64	%		16	%		20	%		6	%		–10	%		–7	%
Northern Europe & Central Asia 1) 2)		46	%		70	%		49	%		–22	%		–32	%		–26	%		–24	%		–21	%
Western & Central Europe 2)		–8	%		–2	%		7	%		–11	%		–10	%		–6	%		–21	%		3	%
Mediterranean 2)		–5	%		–2	%		4	%		19	%		–4	%		12	%		3	%		–14	%
Middle East		–22	%		–7	%		34	%		12	%		3	%		4	%		0	%		–3	%
Sub Saharan Africa		–9	%		–25	%		40	%		59	%		–1	%		26	%		11	%		11	%
India		38	%		107	%		7	%		–46	%		–55	%		–39	%		–24	%		5	%
China & North East Asia		74	%		96	%		39	%		15	%		6	%		–7	%		–13	%		–6	%
South East Asia & Oceania		–12	%		–17	%		–3	%		2	%		9	%		21	%		–6	%		13	%
Other 1) 2)		37	%		49	%		19	%		57	%		9	%		27	%		49	%		–10	%
Total		17	%		14	%		17	%		1	%		–4	%		1	%		–2	%		5	%
1)        Of which Sweden		–11	%		11	%		–8	%		–22	%		–10	%		16	%		75	%		40	%
2)        Of which EU		–9	%		–1	%		5	%		7	%		–5	%		9	%		4	%		–4	%

Ericsson Fourth Quarter Report 2012 29

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			Jan - Sep			Jan - Dec
North America		13,162			25,486			37,582			48,785			12,775			25,762			39,799			56,749
Latin America		4,015			8,942			14,954			21,982			4,822			10,065			15,489			22,006
Northern Europe & Central Asia 1) 2)		3,365			7,917			11,444			15,225			2,292			5,650			8,347			11,345
Western & Central Europe 2)		4,806			9,148			13,760			19,030			4,306			8,400			12,030			17,478
Mediterranean 2)		4,799			10,342			15,567			23,807			4,620			10,834			16,235			23,299
Middle East		3,070			6,616			10,266			15,461			3,157			6,858			10,495			15,556
Sub Saharan Africa		2,212			4,426			6,945			10,163			2,200			4,991			7,791			11,349
India		3,169			5,967			8,240			9,762			1,421			3,121			4,858			6,460
China & North East Asia		8,633			17,658			27,320			38,209			9,154			17,577			25,950			36,196
South East Asia & Oceania		3,108			6,141			9,861			13,870			3,374			7,048			10,553			15,068
Other 1) 2)		2,627			5,093			7,315			10,627			2,853			5,987			9,296			12,273
Total		52,966			107,736			163,254			226,921			50,974			106,293			160,843			227,779
1)        Of which Sweden		927			2,030			2,974			3,882			834			2,116			3,765			5,033
2)        Of which EU		10,020			20,337			30,532			43,960			9,502			20,703			31,307			44,230
Year to date,	2011												2012
year-over-year change, percent	Jan - Mar			Jan - Jun			Jan - Sep			Jan - Dec			Jan - Mar			Jan - Jun			Jan - Sep			Jan - Dec
North America		39	%		13	%		6	%		–1	%		–3	%		1	%		6	%		16	%
Latin America		1	%		10	%		26	%		23	%		20	%		13	%		4	%		0	%
Northern Europe & Central Asia 1) 2)		46	%		59	%		56	%		25	%		–32	%		–29	%		–27	%		–25	%
Western & Central Europe 2)		–8	%		–5	%		–1	%		–4	%		–10	%		–8	%		–13	%		–8	%
Mediterranean 2)		–5	%		–3	%		–1	%		5	%		–4	%		5	%		4	%		–2	%
Middle East		–22	%		–15	%		–2	%		2	%		3	%		4	%		2	%		1	%
Sub Saharan Africa		–9	%		–18	%		–3	%		11	%		–1	%		13	%		12	%		12	%
India		38	%		63	%		42	%		13	%		–55	%		–48	%		–41	%		–34	%
China & North East Asia		74	%		85	%		66	%		47	%		6	%		0	%		–5	%		–5	%
South East Asia & Oceania		–12	%		–14	%		–10	%		–7	%		9	%		15	%		7	%		9	%
Other1) 2)		37	%		43	%		35	%		41	%		9	%		18	%		27	%		15	%
Total		17	%		16	%		16	%		12	%		–4	%		–1	%		–1	%		0	%
1)        Of which Sweden		–11	%		–1	%		–3	%		–8	%		–10	%		4	%		27	%		30	%
2)        Of which EU		–9	%		–5	%		–2	%		1	%		–5	%		2	%		3	%		1	%

TOP 5 COUNTRIES IN SALES

	Q4						Jan - Dec
Country	2011			2012			2011			2012
UNITED STATES		17	%		26	%		21	%		25	%
JAPAN		5	%		7	%		6	%		8	%
CHINA		10	%		6	%		8	%		6	%
ITALY		5	%		4	%		4	%		4	%
BRAZIL		4	%		3	%		3	%		3	%

Ericsson Fourth Quarter Report 2012 30

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 Q1 2012 it is part of region “Other” in Segment Support Solutions.

	Q4 2012, SEK million												Jan - Dec 2012, SEK million
	Networks			Global Services			Support Solutions			Total			Networks			Global Services			Support Solutions			Total
North America		9,351			6,794			805			16,950			30,508			23,508			2,733			56,749
Latin America		2,881			3,237			399			6,517			9,762			10,601			1,643			22,006
Northern Europe & Central Asia		1,561			1,230			207			2,998			6,326			4,543			476			11,345
Western & Central Europe		2,342			2,929			177			5,448			6,156			10,614			708			17,478
Mediterranean		2,752			4,057			255			7,064			9,508			13,012			779			23,299
Middle East		2,465			2,066			530			5,061			6,752			7,336			1,468			15,556
Sub Saharan Africa		2,038			1,236			284			3,558			6,431			3,907			1,011			11,349
India		895			580			127			1,602			3,542			2,457			461			6,460
China & North East Asia		6,477			3,642			127			10,246			22,412			13,268			516			36,196
South East Asia & Oceania		2,540			1,881			94			4,515			7,992			6,569			507			15,068
Other		1,964			390			623			2,977			7,896			1,228			3,149			12,273
Total		35,266			28,042			3,628			66,936			117,285			97,043			13,451			227,779
Share of Total		53	%		42	%		5	%		100	%		51	%		43	%		6	%		100	%

	Q4 2012
Sequential change, percent	Networks			Global Services			Support Solutions			Total
North America		24	%		16	%		33	%		21	%
Latin America		14	%		39	%		–29	%		20	%
Northern Europe & Central Asia		3	%		13	%		111	%		11	%
Western & Central Europe		151	%		16	%		6	%		50	%
Mediterranean		38	%		26	%		38	%		31	%
Middle East		75	%		13	%		31	%		39	%
Sub Saharan Africa		29	%		32	%		1	%		27	%
India		–15	%		–5	%		65	%		–8	%
China & North East Asia		44	%		–3	%		–2	%		22	%
South East Asia & Oceania		45	%		16	%		–32	%		29	%
Other		–8	%		–24	%		–6	%		–10	%
Total		31	%		15	%		9	%		23	%
	Q4 2012
Year over year change, percent	Networks			Global Services			Support Solutions			Total
North America		86	%		19	%		76	%		51	%
Latin America		–12	%		–6	%		25	%		–7	%
Northern Europe & Central Asia		–3	%		–40	%		59	%		–21	%
Western & Central Europe		10	%		3	%		–39	%		3	%
Mediterranean		–26	%		2	%		–52	%		–14	%
Middle East		3	%		–11	%		8	%		–3	%
Sub Saharan Africa		6	%		16	%		22	%		11	%
India		38	%		–28	%		98	%		5	%
China & North East Asia		–12	%		10	%		–45	%		–6	%
South East Asia & Oceania		16	%		17	%		–56	%		13	%
Other		–35	%		–369	%		39	%		–10	%
Total		6	%		4	%		6	%		5	%
	Jan - Dec 2012
Year over year change, percent	Networks			Global Services			Support Solutions			Total
North America		6	%		27	%		103	%		16	%
Latin America		–15	%		12	%		65	%		0	%
Northern Europe & Central Asia		–35	%		–10	%		–6	%		–25	%
Western & Central Europe		–21	%		3	%		–27	%		–8	%
Mediterranean		–11	%		10	%		–42	%		–2	%
Middle East		–9	%		7	%		24	%		1	%
Sub Saharan Africa		10	%		14	%		16	%		12	%
India		–42	%		–22	%		–14	%		–34	%
China & North East Asia		–19	%		34	%		0	%		–5	%
South East Asia & Oceania		6	%		18	%		–29	%		9	%
Other		–14	%		–844	%		90	%		15	%
Total		–11	%		16	%		26	%		0	%

Ericsson Fourth Quarter Report 2012 31

PROVISIONS

2011

2012

Isolated quarters, SEK million

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Opening balance

9,744

9,529

9,335

8,065

6,265

5,930

5,318

5,243

Additions

1,304

2,032

633

838

1,003

616

810

4,582

Utilization/Cash out

–1,091

–1,908

–1,464

–1,524

–980

–850

–664

–981

Of which restructuring

–762

–1,220

–747

–494

–401

–342

–160

–267

Reversal of excess amounts

–88

–451

–556

–824

–370

–453

–95

–155

Reclassification, translation difference and other

–340

133

117

–290

12

75

–126

–51

Closing balance

9,529

9,335

8,065

6,265

5,930

5,318

5,243

8,638

2011

2012

Year to date, SEK million

Jan - Mar

Jan - Jun

Jan - Sep

Jan - Dec

Jan - Mar

Jan - Jun

Jan - Sep

Jan - Dec

Opening balance

9,744

9,744

9,744

9,744

6,265

6,265

6,265

6,265

Additions

1,304

3,336

3,969

4,807

1,003

1,619

2,429

7,011

Utilization/Cash out

–1,091

–2,999

–4,463

–5,987

–980

–1,830

–2,494

–3,475

Of which restructuring

–762

–1,982

–2,729

–3,223

–401

–743

–903

–1,170

Reversal of excess amounts

–88

–539

–1,095

–1,919

–370

–823

–918

–1,073

Reclassification, translation difference and other

–340

–207

–90

–380

12

87

–39

–90

Closing balance

9,529

9,335

8,065

6,265

5,930

5,318

5,243

8,638

NUMBER OF EMPLOYEES

	2011								2012
End of period	Mar 31		Jun 30		Sep 30		Dec 31		Mar 31		Jun 30		Sep 30		Dec 31
North America		13,531		14,553		14,782		14,801		16,281		15,872		15,486		15,501
Latin America		7,394		9,875		10,315		11,191		11,538		11,176		10,920		11,219
Northern Europe & Central Asia 1)		21,339		21,451		21,083		20,987		21,341		21,457		21,334		21,211
Western & Central Europe		10,629		10,518		10,601		10,806		10,900		10,837		11,897		11,257
Mediterranean		10,907		11,069		11,521		11,645		11,858		11,986		12,321		12,205
Middle East		4,057		4,160		4,304		4,336		4,361		4,231		4,065		3,992
Sub Saharan Africa		1,644		1,637		1,891		2,283		2,317		2,277		1,669		2,014
India		7,448		8,563		9,672		11,535		12,567		12,644		13,269		14,303
China & North East Asia		10,111		11,601		12,313		12,567		13,016		13,233		13,853		14,157
South East Asia & Oceania		4,486		4,502		4,408		4,374		4,372		4,382		4,400		4,396
Total		91,546		97,929		100,890		104,525		108,551		108,095		109,214		110,255
1)        Of which Sweden		17,771		17,930		17,588		17,500		17,767		17,890		17,768		17,712

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		Q3		Q4
Additions
Property, plant and equipment		980		1,196		1,294		1,524		1,648		994		1,461		1,326
Capitalized development expenses		269		429		257		560		251		525		435		430
IPR, brands and other intangible assets		359		29		488		97		5,570		992		341		409
Total		1,608		1,654		2,039		2,181		7,469		2,511		2,237		2,165
Depreciation, amortization and impairment losses
Property, plant and equipment		841		821		827		1,057		914		982		1,035		1,081
Capitalized development expenses		232		240		263		267		245		259		265		555
IPR, brands and other intangible assets, etc.		1,136		1,111		1,137		1,104		1,156		1,160		1,094		1,143
Total		2,209		2,172		2,227		2,428		2,315		2,401		2,394		2,779

Ericsson Fourth Quarter Report 2012 32

OTHER INFORMATION

	Oct - Dec				Jan - Dec
	2011		2012		2011			2012
Number of shares and earnings per share
Number of shares, end of period (million)		3,273		3,305		3,273			3,305
Of which class A-shares (million)		262		262		262			262
Of which class B-shares (million)		3,011		3,043		3,011			3,043
Number of treasury shares, end of period (million)		63		85		63			85
Number of shares outstanding, basic, end of period (million)		3,211		3,220		3,211			3,220
Numbers of shares outstanding, diluted, end of period (million)		3,238		3,251		3,238			3,251
Average number of treasury shares (million)		64		86		68			76
Average number of shares outstanding, basic (million)		3,209		3,219		3,206			3,216
Average number of shares outstanding, diluted (million) 1)		3,237		3,251		3,233			3,247
Earnings per share, basic (SEK)		0.36		–2.01		3.80			1.80
Earnings per share, diluted (SEK) 1)		0.36		–1.99		3.77			1.78
1)        Potential ordinary shares are not considered when their conversion to ordinary shares would increase earnings per share
Ratios
Days sales outstanding		—		—		91			86
Inventory turnover days		74		61		78			73
Payable days		52		45		62			57
Equity ratio (%)		—		—		51.8	%		50.4	%
Capital turnover (times)		1.4		1.5		1.2			1.3
Payment readiness, end of period		—		—		86,570			84,951
Payment readiness, as percentage of sales		—		—		38.1	%		37.3	%
Exchange rates used in the consolidation
SEK/EUR - average rate		—		—		9.02			8.70
- closing rate		—		—		8.92			8.58
SEK/USD - average rate		—		—		6.48			6.73
- closing rate		—		—		6.90			6.51
Other
Regional inventory, end of period,		19,921		19,353		19,921			19,353
Export sales from Sweden		25,060		30,201		116,507			106,997

Ericsson Fourth Quarter Report 2012 33

RESTRUCTURING CHARGES BY FUNCTION

2011

2012

Isolated quarters, SEK million

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Cost of sales

–185

–257

–283

–506

–496

–389

–455

–885

Research and development expenses

–180

–208

–115

–58

–19

–107

–33

–693

Selling and administrative expenses

–8

–1,236

22

–170

–54

–98

–82

–136

Subtotal Ericsson excluding Sony Ericsson and ST-Ericsson

–373

–1,701

–376

–734

–569

–594

–570

–1,714

Share in Sony Ericsson charges

—

—

—

–419

—

—

—

—

Share in ST-Ericsson charges

–15

–77

–17

–31

–30

–190

–46

–46

Subtotal Sony Ericsson and ST-Ericsson

–15

–77

–17

–450

–30

–190

–46

–46

Total

–388

–1,778

–393

–1,184

–599

–784

–616

–1,760

2011

2012

Year to date, SEK million

Jan - Mar

Jan - Jun

Jan - Sep

Jan - Dec

Jan - Mar

Jan - Jun

Jan - Sep

Jan - Dec

Cost of sales

–185

–442

–725

–1,231

–496

–885

–1,340

–2,225

Research and development expenses

–180

–388

–503

–561

–19

–126

–159

–852

Selling and administrative expenses

–8

–1,244

–1,222

–1,392

–54

–152

–234

–370

Subtotal Ericsson excluding Sony Ericsson and ST-Ericsson

–373

–2,074

–2,450

–3,184

–569

–1,163

–1,733

–3,447

Share in Sony Ericsson charges

—

—

—

–419

—

—

—

—

Share in ST-Ericsson charges

–15

–92

–109

–140

–30

–220

–266

–312

Subtotal Sony Ericsson and ST-Ericsson

–15

–92

–109

–559

–30

–220

–266

–312

Total

–388

–2,166

–2,559

–3,743

–599

–1,383

–1,999

–3,759

RESTRUCTURING CHARGES BY SEGMENT

2011

2012

Isolated quarters, SEK million

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Networks

–205

–1,039

–121

–235

–87

–167

–94

–905

Global Services

–166

–487

–254

–456

–473

–415

–441

–601

Of which Professional Services

–145

–361

–225

–264

–358

–302

–305

–371

Of which Network Rollout

–21

–126

–29

–192

–115

–113

–136

–230

Support Solutions

–2

–119

–6

–16

–9

–12

–29

–196

Unallocated

—

–56

5

–27

—

—

–6

–12

Subtotal Ericsson excluding Sony Ericsson and ST-Ericsson

–373

–1,701

–376

–734

–569

–594

–570

–1,714

Sony Ericsson

—

—

—

–419

—

—

—

—

ST-Ericsson

–15

–77

–17

–31

–30

–190

–46

–46

Subtotal Sony Ericsson and ST-Ericsson

–15

–77

–17

–450

–30

–190

–46

–46

Total

–388

–1,778

–393

–1,184

–599

–784

–616

–1,760

2011

2012

Year to date, SEK million

Jan - Mar

Jan - Jun

Jan - Sep

Jan - Dec

Jan - Mar

Jan - Jun

Jan - Sep

Jan - Dec

Networks

–205

–1,244

–1,365

–1,600

–87

–254

–348

–1,253

Global Services

–166

–653

–907

–1,363

–473

–888

–1,329

–1,930

Of which Professional Services

–145

–506

–731

–995

–358

–660

–965

–1,336

Of which Network Rollout

–21

–147

–176

–368

–115

–228

–364

–594

Support Solutions

–2

–121

–127

–143

–9

–21

–50

–246

Unallocated

—

–56

–51

–78

—

—

–6

–18

Subtotal Ericsson excluding Sony Ericsson and ST-Ericsson

–373

–2,074

–2,450

–3,184

–569

–1,163

–1,733

–3,447

Sony Ericsson

—

—

—

–419

—

—

—

—

ST-Ericsson

–15

–92

–109

–140

–30

–220

–266

–312

Subtotal Sony Ericsson and ST-Ericsson

–15

–92

–109

–559

–30

–220

–266

–312

Total

–388

–2,166

–2,559

–3,743

–599

–1,383

–1,999

–3,759

Ericsson Fourth Quarter Report 2012 34