SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN ISSUER

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

the Securities Exchange Act of 1934

April 23, 2014

LM ERICSSON TELEPHONE COMPANY

(Translation of registrant’s name into English)

Torshamnsgatan 21, Kista

SE-164 83, Stockholm, Sweden

(Address of principal executive offices)

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

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.     Yes  ¨    No  x

Announcement of LM Ericsson Telephone Company, dated April 23, 2014 regarding “First Quarter Report 2014”

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: April 23, 2014

First quarter report 2014 Stockholm, April 23, 2014

FIRST QUARTER HIGHLIGHTS	Read more (page)
•   Sales in the quarter were SEK 47.5 (52.0) b. Sales for comparable units, adjusted for currency, decreased -7% YoY and -28% QoQ		3
•   Sales declined YoY, primarily in North America and Japan but partly offset by China, Middle East and Latin America		2
•   Business mix in the quarter was mainly driven by mobile broadband capacity projects. With current visibility, key contracts awarded will gradually impact sales and business mix, mainly in the second half of the year.		2
•   Operating margin improved YoY in all segments to 5.5% (4.0%) mainly driven by mobile broadband capacity sales and lower restructuring charges		3
•   Operating income amounted to SEK 2.6 (2.1) b.		5-7
•   Cash flow from operating activities was SEK 9.4 b. driven by the payment from Samsung related to the new license agreement as well as reduced trade receivables.		11

SEK b.	Q1 2014			Q1 2013			YoY change			Q4 2013			QoQ change
Net sales		47.5			52.0			-9	%		67.0			-29	%
Sales growth adj. for comparable units and currency		—			—			-7	%		—			-28	%
Gross margin		36.5	%		32.0	%		—			37.1	%		—
Operating income		2.6			2.1			25	%		9.1			-71	%
Operating margin		5.5	%		4.0	%		—			13.5	%		—
Net income		1.7			1.2			41	%		6.4			-74	%
EPS diluted, SEK		0.65			0.37			76	%		1.97			-67	%
EPS (Non-IFRS), SEK 1)		0.90			0.99			-9	%		2.42			-63	%
Cash flow from operating activities		9.4			-3.0			—			14.6			-36	%
Net cash, end of period		43.6			32.2			35	%		37.8			15	%

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

Ericsson First Quarter Report 2014 1

CEO Comments

Sales for comparable units, adjusted for currency, declined by -7% year-over-year, with continued negative impact from North America and Japan. All segments showed margin improvements.

The main reason behind the decline in sales is, as previously communicated, lower revenues from two large mobile broadband coverage projects in North America, which peaked in the first half of 2013, and the impact from reduced activity in Japan. This was partly offset by growth in China, Middle East and Latin America. The decline in sales impacted segment Networks as well as the Global Services network rollout business.

Our focus on profitability is paying off with gross margin improvement YoY, both including and excluding restructuring. All segments also showed improved operating margins. The business mix in the quarter was predominantly driven by mobile broadband capacity projects. In addition, some of our customers invested more in software to improve network performance and user experience.

Operating cash flow amounted to SEK 9.4 b., compared to a negative operating cash flow of SEK -3.0 b. in the first quarter last year. The payment from Samsung, related to IPR licensing, as well as lower sales had a positive effect on cash flow. Our continued efforts to reduce working capital through a better order-to-cash process are progressing well.

North America is currently characterized by operator investments in capacity and quality enhancements. At the same time we continue to strengthen our position in strategic areas. We are pleased to have been named partner to AT&T for their Domain 2.0 initiative which aims to simplify and scale their network utilizing Network Function Virtualization (NFV) and Software-Defined Networking (SDN).

In region North East Asia we are executing on previously awarded 4G/LTE contracts in mainland China. In addition, we have been awarded important 4G/LTE contracts in Japan and Taiwan.

In Europe, we have been awarded a five-year contract as part of Vodafone’s Project Spring. It includes upgrades and expansions of Vodafone’s 2G and 3G networks, and build-out of 4G/LTE along with professional services.

There is continued demand for our services offering and in the quarter we have won new managed services business in several regions.

With seven additional operators announcing trials of the Ericsson Radio Dot System we see strong interest in the solution. The innovative small-cell indoor solution will be commercially available later this year.

With current visibility, key contracts awarded will gradually impact sales and business mix, mainly in the second half of the year.

Political unrest prevails in parts of the Middle East and Africa and is still impacting sales. There is also an increased political uncertainty in Russia and the Ukraine. In 2013 Ericsson had SEK 5.9 b. in sales in Russia and Ukraine. The current political uncertainty has not impacted sales in the first quarter.

In a transforming ICT market, Ericsson continues to evolve through investments both into its core business and in new and targeted areas. Through our technology and services leadership we are well positioned to continue to stay relevant as our customers move to capture new market opportunities.

Hans Vestberg

President and CEO

Ericsson First Quarter Report 2014 2

Financial highlights

SEK b.	Q1 2014			Q1 2013			YoY change			Q4 2013			QoQ change
Net sales		47.5			52.0			-9	%		67.0			-29	%
Of which Networks		24.4			28.1			-13	%		34.8			-30	%
Of which Global Services		20.4			21.5			-5	%		27.2			-25	%
Of which Support Solutions		2.8			2.4			13	%		5.1			-46	%
Of which Modems		0.0			—			—			0.0			—
Gross income		17.3			16.6			4	%		24.9			-30	%
Gross margin (%)		36.5	%		32.0	%		—			37.1	%		—
Research and development expenses		-8.3			-7.9			5	%		-8.9			-7	%
Selling and administrative expenses		-6.5			-6.6			-3	%		-7.2			-11	%
Other operating income and expenses		0.0			0.0			5	%		0.3			-94	%
Operating income		2.6			2.1			25	%		9.1			-71	%
Operating margin		5.5	%		4.0	%		—			13.5	%		—
for Networks		10	%		6	%		—			17	%		—
for Global Services		5	%		3	%		—			8	%		—
for Support Solutions		0	%		-1	%		—			37	%		—
for Modems		—			—			—			—			—
Financial net		-0.2			-0.4			-45	%		-0.1			48	%
Taxes		-0.7			-0.5			41	%		-2.5			-71	%
Net income		1.7			1.2			41	%		6.4			-74	%
Restructuring charges		-0.1			-1.8			-93	%		-1.0			-86	%

Net sales

Sales, adjusted for comparable units and currency, decreased -7% YoY and -28% sequentially.

The YoY sales decrease was primarily driven by North America and Japan where large mobile broadband coverage projects peaked in the first half of 2013 and are now near completion. IPR revenues grew YoY following the new Samsung license agreement reached in January 2014.

Sales declined sequentially following a strong Q4, with significant decline in China.

Gross margin

The gross margin increased YoY. This was primarily due to a business mix with a large share of mobile broadband capacity projects with higher hardware margins. Lower restructuring charges, increased IPR revenues and lower Network Rollout sales also contributed positively to the gross margin.

The gross margin decreased sequentially following a strong fourth quarter 2013 with SEK 4.2 b. related to the Samsung IPR license agreement. Excluding the license agreement the gross margin was 32.9% in Q413. A higher share of mobile broadband capacity projects in the quarter contributed positively to the gross margin QoQ.

During the quarter a currency revaluation effect of SEK -0.4 b. was recognized mainly related to currency depreciation in emerging markets.

Restructuring charges

Restructuring charges for the Group decreased both YoY and QoQ. The execution on the service delivery strategy, to move service delivery local resources to global centers continued, although at a slower pace in the beginning of the year.

Operating expenses

Total operating expenses increased SEK 0.2 b. YoY mainly due to the added Modems and Mediaroom businesses, while restructuring charges decreased.

Ericsson First Quarter Report 2014 3

Other operating income and expenses

The hedge effect on other operating income was SEK -0.1 b.

Operating income

Operating income increased YoY driven by mobile broadband capacity sales, IPR revenues and lower restructuring charges but negatively impacted by reduced sales and increased expenses. Currency continued to have a negative impact on operating income YoY and QoQ.

Financial net

Financial net improved YoY mainly due to currency revaluation effects.

Net income and EPS

Net income and EPS diluted increased following the improved operating income.

Ericsson First Quarter Report 2014 4

Segment results

NETWORKS

SEK b.	Q1 2014			Q1 2013			YoY change			Q4 2013			QoQ change
Net sales		24.4			28.1			-13	%		34.8			-30	%
Sales growth adj. for comparable units and currency		—			—			-10	%		—			-30	%
Operating income		2.5			1.6			58	%		5.9			-58	%
Operating margin		10	%		6	%		—			17	%		—
EBITA margin		13	%		8	%		—			19	%		—
Restructuring charges		-0.1			-1.3			-93	%		-0.3			-71	%

Net sales

Sales, adjusted for comparable units and currency, decreased YoY. The anticipated decline in mobile broadband coverage projects, primarily related to North America and Japan was not fully offset by growth in China, Middle East and Latin America. The capacity business continued to show good growth. Sales declined QoQ following a strong fourth quarter 2013 and lower business activities in North East Asia. CDMA sales continued to decline by -71% YoY and -65% QoQ to SEK 0.4 b.

Ericsson’s LTE business maintained steady YoY while the related adoption of Voice over LTE (VoLTE) contributed to sequential growth in both IP Multimedia Systems (IMS) and User Data Consolidation (UDC), required to support multi-access converged network services.

Operating income and margin

For the third consecutive quarter operating margin was 10% or above. The YoY improvement was supported by a larger share of mobile broadband capacity business, higher IPR revenues and solid development in the underlying business with continued focus on cost adaptation and portfolio efficiency. Lower restructuring charges contributed to the YoY improvement. The operating margin declined QoQ as a result of lower IPR revenues.

Business update

The momentum for the multi-application router, SSR 8000, continued with 109 contracts signed since the launch in December 2011. During the quarter 13 new contracts were signed of which 5 were for fixed networks. To further strengthen IP-optical capabilities, a strategic agreement with Ciena (a top three optical networking supplier) was announced in the quarter.

Ericsson First Quarter Report 2014 5

GLOBAL SERVICES

SEK b.	Q1 2014			Q1 2013			YoY change			Q4 2013			QoQ change
Net sales		20.4			21.5			-5	%		27.2			-25	%
Of which Professional Services		15.1			14.6			3	%		18.8			-20	%
Of which Managed Services		5.8			5.9			-2	%		6.6			-12	%
Of which Network Rollout		5.3			6.8			-23	%		8.4			-37	%
Sales growth adj. for comparable units and currency		—			—			-3	%		—			-25	%
Operating income		1.0			0.7			43	%		2.1			-50	%
Of which Professional Services		1.9			1.8			3	%		2.6			-28	%
Of which Network Rollout		-0.9			-1.1			-23	%		-0.5			58	%
Operating margin		5	%		3	%		—			8	%		—
for Professional Services		13	%		13	%		—			14	%		—
for Network Rollout		-16	%		-16	%		—			-6	%		—
EBITA margin		6	%		4	%		—			9	%		—
Restructuring charges		-0.0			-0.4			-92	%		-0.6			-95	%

Net sales

YoY sales increased in 7 out of 10 regions. Sales, adjusted for comparable units and currency, declined however due to reduced mobile broadband activities in North America and Japan. As anticipated the Network Rollout revenue decline accelerated after a period of high sales. Professional Services sales increased YoY although Managed Services sales declined slightly.

Global Services sales declined QoQ after a strong Q4 and due to reduced activities in Network Rollout.

Operating income and margin

Operating margin for Global Services improved YoY as a result of lower sales and reduced losses in Network Rollout. In the quarter, Network Rollout operating income was negatively impacted by temporary additional project costs in North America as well as losses in the Network modernization projects in Europe. As expected, activities and losses in the European modernization projects continue to trend down. Professional Services margin remained flat.

Business update

The market demand for Professional Services continues to be strong with several new contracts in the quarter.

Other information	Q1 2014		Q1 2013
Number of signed Managed Services contracts		16		21
Number of signed significant consulting & systems integration contracts 1)		9		8
Number of Ericsson services professionals, end of period		61,000		61,000

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

Ericsson First Quarter Report 2014 6

SUPPORT SOLUTIONS

SEK b.	Q1 2014			Q1 2013			YoY change			Q4 2013			QoQ change
Net sales		2.8			2.4			13	%		5.1			-46	%
Sales growth adj. for comparable units and currency		—			—			4	%		—			-45	%
Operating income		0.0			0.0			—			1.9			—
Operating margin		0	%		-1	%		—			37	%		—
EBITA margin		7	%		5	%		—			41	%		—
Restructuring charges		0.0			-0.1			—			0.0			—

Net sales

Both reported sales and sales adjusted for comparable units and currency increased YoY. The acquired Microsoft Mediaroom business and increased sales in OSS had a positive impact on sales. Sales declined QoQ after a seasonally strong Q4 and the positive effect from the Samsung IPR-licensing agreement.

Operating income and margin

Operating income and margin was flat YoY. Operating margin declined QoQ due to lower sales.

Business update

During the quarter the acquisition of Azuki Systems was completed and customer interest in the acquired portfolio is strong. The integration of Mediaroom is progressing according to plan.

In the OSS and BSS area Ericsson announced important contracts with CenturyLink in US for Service Agility solutions and with TeliaSonera in Sweden for the Customer Experience Management solution.

Ericsson First Quarter Report 2014 7

MODEMS

SEK b.	Q1 2014		Q4 2013		QoQ change
Net sales		0.0		0.0		—
Sales growth for comparable units and currency		—		—		—
Operating income		-0.7		-0.5		37	%
Operating margin		—		—		—
EBITA margin		—		—		—
Restructuring charges		0.0		0.0		—

Background

Since August, 2013, Ericsson has an LTE thin- modem business with industry leading technology and intellectual property. The operation was integrated into Ericsson after the split-up of the joint venture ST-Ericsson last year. Modems are part of Ericsson’s vision of 50 billion connected devices and the ambition is to be a top-three supplier in the thin-modems market. The first product, Ericsson M7450, was released for commercial use in the fourth quarter last year. Work is ongoing with a tier one smartphone manufacturer to integrate M7450 in their devices. Net sales are expected in the second half of 2014.

Operating income

Operating expenses for the modems business in 2014 are estimated to approximately SEK -2.6 b., of which SEK -0.7 b. in the first quarter.

Ericsson First Quarter Report 2014 8

Regional sales

	First quarter 2014								Change
SEK b.	Networks		Global Services		Support Solutions		Total		YoY			QoQ
North America		6.5		5.0		0.6		12.2		-23	%		-11	%
Latin America		2.4		2.0		0.2		4.7		8	%		-30	%
Northern Europe and Central Asia		1.4		1.0		0.1		2.4		7	%		-34	%
Western and Central Europe		1.8		2.5		0.1		4.4		1	%		-16	%
Mediterranean		2.0		2.6		0.2		4.8		-9	%		-32	%
Middle East		1.8		1.9		0.2		3.9		22	%		-35	%
Sub-Saharan Africa		0.7		0.8		0.3		1.8		-15	%		-30	%
India		0.9		0.7		0.1		1.7		6	%		-14	%
North East Asia		2.8		2.0		0.1		4.9		-19	%		-43	%
South East Asia and Oceania		1.9		1.5		0.1		3.4		-17	%		-20	%
Other 1)		2.2		0.3		0.8		3.3		12	%		-55	%
Total		24.4		20.4		2.8		47.5		-9	%		-29	%

¹⁾  Region “Other” includes licensing revenues, broadcast services, power modules, mobile broadband modules, Ericsson-LG Enterprise and other businesses.

North America

Lower mobile broadband coverage project activity resulted in a Networks sales decline as well as lower network rollout sales, partly offset by network quality and capacity expansion sales. Network ICT transformation drives a strong professional services business, including the modernization of OSS and BSS.

Latin America

Sales increased YoY driven by operators’ investments to increase 3G network quality as well as LTE deployments in Chile and Brazil.

Northern Europe and Central Asia

Sales continued to grow YoY mainly driven by mobile broadband infrastructure investments in Russia. The positive development in Professional Services continued YoY driven by operator focus on network quality. The non-operator business in the Nordics showed stable growth.

Western and Central Europe

Sales were stable YoY. Network performance drives investments in 3G and LTE as well as services. Support Solutions increased YoY with the inclusion of Mediaroom, and increases in OSS and BSS.

Mediterranean

Sales declined YoY as major network modernization projects peaked early 2013. Business activity was lower in Italy and Spain, primarily due to operator consolidation discussions. There is an increasing demand for professional services, driven by managed services.

Middle East

Sales continued to grow YoY mainly driven by mobile broadband infrastructure deployments in Iraq, Pakistan and Saudi Arabia. In the quarter activities in Turkey were low and 4G deployments are delayed. Demand for professional services continued as operators seek network performance quality and operational efficiencies.

Sub-Saharan Africa

Network sales declined due to reduction in capex spend by a major customer. The negative development was partly offset by continued strong sales in OSS and BSS.

India

Sales grew YoY mainly due to network traffic growth in response to increasing smartphone penetration and data usage. Spectrum auctions were concluded in the quarter with operators securing necessary spectrum in their existing circles.

North East Asia

Sales decreased YoY as a result of lower network investment levels in Japan and the continued structural decline of GSM in China. The decline was partly offset by execution on previously awarded 4G/LTE contracts in China.

Ericsson First Quarter Report 2014 9

South East Asia and Oceania

Sales in the region declined YoY as major mobile broadband coverage projects in Indonesia and Australia peaked. Demand continued for professional services, both systems integration and network design and optimization. The smartphone penetration is increasing from an overall low level in the region. During the quarter Ericsson announced a contract in Myanmar, which is a new market for the Group.

Other

Licensing revenues showed good development YoY, following the Samsung agreement. Broadcast services continued to grow. Sales of power modules and other businesses are also included in “Other”.

Ericsson First Quarter Report 2014 10

CASH flow

SEK b.	Q1 2014			Q1 2013			Q4 2013
Net income reconciled to cash		3.2			1.6			12.5
Changes in operating net assets		6.2			-4.6			2.1
Cash flow from operating activities		9.4			-3.0			14.6
Cash flow from investing activities		-8.8			-4.1			-11.4
Cash flow from financing activities		-5.1			0.0			3.5
Net change in cash and cash equivalents		-4.0			-7.2			6.9
Cash conversion (%)		290	%		-186	%		117	%

The positive cash flow from operating activities was driven by the initial IPR-licensing payment from Samsung and lower working capital. Working capital improved mainly as a result of improved business mix.

Investing activities relates primarily to normal capex investments of SEK 1.0 b.

Short-term investments with maturity more than 3 months have increased by SEK 6.8. b., primarily as a result of transferred liquidity from Cash and cash equivalents.

Cash flow from financing activities was impacted by repayment of debt of SEK -6.0 b.

Payments for ongoing restructuring amounted to approximately SEK -0.5 b. in the quarter.

Working capital KPIs, number of days	Jan-Mar 2014		Jan-Dec 2013		Jan-Sep 2013		Jan-Jun 2013		Jan-Mar 2013
Sales outstanding		112		97		109		103		108
Inventory		72		62		72		73		76
Payable		62		53		53		55		55

Despite substantially reduced trade receivables, days sales outstanding increased. The main reason is lower sales in the quarter.

Inventory and payable days increased as an effect of the preparation for coming mobile broadband deployments.

Efforts to reduce working capital through a better order-to-cash process continue.

Ericsson First Quarter Report 2014 11

FINANCIAL POSITION

SEK b.	Mar 31 2014			Mar 31 2013			Dec 31 2013
+ Short-term investments		41.8			34.6			35.0
+ Cash and cash equivalents		38.1			37.4			42.1
Gross cash		79.9			72.1			77.1
- Interest bearing liabilities and post-employment benefits		36.3			39.9			39.3
Net cash		43.6			32.2			37.8
Equity		142.6			139.2			141.6
Total assets		267.2			270.5			269.2
Capital turnover (times)		1.1			1.2			1.3
Return on capital employed (%)		6.7	%		5.1	%		10.7	%
Equity ratio (%)		53.4	%		51.4	%		52.6	%
Return on equity (%)		6.0	%		3.5	%		8.7	%

Net cash increased in the quarter as a result of positive cash flow from operating activities. Long-term borrowings decreased as a result of a repayment of a EIB loan of SEK 4.0 b., with original maturity in 2015 and repayment of a USD 300 million bond from the Swedish Export Credit Corporation with original maturity in 2016.

Post-employment benefits increased by SEK 1.8 b. mainly due to lower discount rates.

The average maturity of long-term borrowings as of March 31, 2014, was 5.7 years, compared to 4.8 years 12 months ago. In June 2014, maturing borrowings of SEK 2.0 b. will be repaid.

Ericsson has one unutilized Revolving Credit Facility of USD 2.0 b. The facility was signed in 2013 and is for five years with two one-year extension options.

Ericsson First Quarter Report 2014 12

Parent company

Income after financial items was SEK 0.4 (1.2) b. YoY.

Major changes in the Parent Company’s financial position for the year; increased cash, cash equivalents and short-term investments of SEK 4.0 b. and increased current and non-current liabilities to subsidiaries of SEK 9.3 b. At the end of the quarter, cash, cash equivalents and short-term investments amounted to SEK 62.5 (58.5) b.

In January 2014, the Parent Company repaid the SEK 4.0 b. EIB loan with original maturity July 2015. The Parent Company also repaid an USD 300 million bond during the quarter.

In accordance with the conditions of the long-term variable compensation program (LTV) for Ericsson employees, 2,777,896 shares from treasury stock were sold or distributed to employees during the first quarter. The holding of treasury stock at March 31, 2014, was 71,190,282 Class B shares.

Ericsson First Quarter Report 2014 13

Other information

Antitrust investigations against Ericsson

In March 2013, Ericsson filed a patent infringement lawsuit in the Indian Delhi High Court against Micromax Informatics Limited. As part of its defense, Micromax filed a complaint with the Competition Commission of India (CCI) and in November 2013 the CCI decided to refer the case to the Director General’s Office for an in-depth investigation. In January 2014 the CCI announced they had opened another investigation against Ericsson based on claims made by Intex Technologies (India) Limited. Ericsson has made numerous attempts to sign a license agreement with Micromax and Intex on Fair, Reasonable and Non-discriminatory (FRAND) terms.

Ericsson and Ciena in strategic global agreement

On February 14, 2014, Ericsson and Ciena announced a strategic global agreement to develop joint transport solutions for IP-optical convergence and service provider software-defined networking (SDN). As part of this agreement, Ericsson offers Ciena’s Converged Packet Optical portfolio, including the 6500 Packet-Optical Platform and 5400 switching platform family. Ericsson will benefit from Ciena’s best-in-class optical technology leadership, including its WaveLogic coherent optical processors and global market presence. The strategic agreement is effective immediately, and go-to-market activities and solution integration efforts are underway.

Ericsson acquires Azuki Systems

On February 6, 2014, Ericsson announced it had entered into an agreement to acquire Massachusetts-based Azuki Systems, Inc., a provider of TV Anywhere delivery platforms for service providers, content owners and broadcasters. Azuki Systems extends Ericsson’s leading TV and media portfolio which includes the recent addition of Mediaroom from Microsoft. Through the acquisition, Ericsson will accelerate the availability of new and compelling viewing experiences across a variety of devices and screens. The acquisition brings a team of highly skilled software engineers from Azuki Systems. Azuki Systems was founded in 2008 and is based in Acton, Massachusetts, USA. The company has 49 employees. The acquisition was concluded in February and will be incorporated into Business Unit Support Solutions.

POST-CLOSING EVENTS

Changes in Ericsson leadership team

On April 14, 2014, Ericsson announced that Douglas Gilstrap will resign from his role as Senior Vice President and Head of Group Function Strategy and leave Ericsson’s Executive Leadership Team. Gilstrap joined Ericsson in his role in 2009 and has been responsible for developing Ericsson’s business strategy and driving the company’s M&A activities during this time. He has also played a key role in dissolving the ST-Ericsson joint venture and integrating the thin modems business into Ericsson. Since 2013 he also served as Chairman of Business Unit Modems.

Ericsson First Quarter Report 2014 14

Risk factors

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 2013. Compared to the risks described in the Annual Report 2013, no material, new or changed risk factors or uncertainties have been identified in the year.

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 buildouts of coverage (mainly hardware);

• Effects on gross margins of the product mix in the Global Services segment including proportion of new network buildouts 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;

• Changes in foreign exchange rates, in particular USD, JPY 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, April 23, 2014

Telefonaktiebolaget LM Ericsson

Hans Vestberg, President and CEO

Org. Nr. 556016-0680

This report has not been reviewed by Telefonaktiebolaget LM Ericsson’s auditors.

Date for next report: July 18, 2014

Ericsson First Quarter Report 2014 15

Editor’s note

Ericsson invites media, investors and analysts to a press conference at the Ericsson Studio, Grönlandsgången 4, Stockholm, at 09.00 (CET), April 23, 2014. An analysts, investors and media conference call will begin at 14.00 (CET).

Live webcast of the press conference and conference call as well as supporting slides will be available at www.ericsson.com/press and www.ericsson.com/investors

Video material will be published during the day on www.ericsson.com/press

For further information, please contact:

Helena Norrman, Senior Vice President,

Communications

Phone: +46 10 719 34 72

E-mail: investor.relations@ericsson.com or media.relations@ericsson.com

Telefonaktiebolaget LM Ericsson

Org. number: 556016-0680

Torshamnsgatan 23

SE-164 83 Stockholm

Phone: +46 10 719 00 00

www.ericsson.com

Investors

Peter Nyquist, Vice President,

Investor Relations

Phone: +46 10 714 64 49, +46 70 575 29 06

E-mail: peter.nyquist@ericsson.com

Stefan Jelvin, Director,

Investor Relations

Phone: +46 10 714 20 39, +46 70 986 02 27

E-mail: stefan.jelvin@ericsson.com

Åsa Konnbjer, Director,

Investor Relations

Phone: +46 10 713 39 28, +46 73 082 59 28

E-mail: asa.konnbjer@ericsson.com

Rikard Tunedal, Director,

Investor Relations

Phone: +46 10 714 54 00, +46 761 005 400

E-mail: rikard.tunedal@ericsson.com

Media

Ola Rembe, Vice President,

Head of External Communications

Phone: +46 10 719 97 27, +46 73 024 48 73

E-mail: media.relations@ericsson.com

Corporate Communications

Phone: +46 10 719 69 92

E-mail: media.relations@ericsson.com

Ericsson First Quarter Report 2014 16

Safe harbor statement

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

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

Ericsson First Quarter Report 2014 17

Financial statements and additional information

Financial statements
19	Consolidated income statement
19	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	Parent Company income statement
25	Parent Company balance sheet

Additional information
26	Accounting policies
27	Net sales by segment by quarter
27	Sales growth for comparable units, adjusted for currency effects and hedging
28	Operating income by segment by quarter
28	Operating margin by segment by quarter
29	EBITA by segment by quarter
29	EBITA margin by segment by quarter
30	Net sales by region by quarter
31	Net sales by region by quarter (cont.)
31	Top 5 countries in sales
32	Net sales by region by segment
33	Provisions
33	Information on investments in assets subject to depreciation, amortizations, impairment and write-downs
33	Reconciliation table, non-IFRS measurements
34	Other information
34	Number of employees
35	Restructuring charges by function
35	Restructuring charges by segment

Ericsson First Quarter Report 2014 18

CONSOLIDATED INCOME STATEMENT

	Jan - Mar									Jan - Dec
SEK million	2013			2014			Change			2013
Net sales		52,032			47,505			-9	%		227,376
Cost of sales		-35,394			-30,184			-15	%		-151,005
Gross income		16,638			17,321			4	%		76,371
Gross margin (%)		32.0	%		36.5	%					33.6	%
Research and development expenses		-7,877			-8,275			5	%		-32,236
Selling and administrative expenses		-6,643			-6,452			-3	%		-26,273
Operating expenses		-14,520			-14,727			1	%		-58,509
Other operating income and expenses		20			21						113
Shares in earnings of JV and associated companies		-32			15						-130
Operating income		2,106			2,630			25	%		17,845
Financial income		180			401						1,346
Financial expenses		-565			-612						-2,093
Income after financial items		1,721			2,419			41	%		17,098
Taxes		-517			-727						-4,924
Net income		1,204			1,692			41	%		12,174
Net income attributable to:
- Stockholders of the Parent Company		1,205			2,120						12,005
- Non-controlling interests		-1			-428						169
Other information
Average number of shares, basic (million)		3,222			3,233						3,226
Earnings per share, basic (SEK) 1)		0.37			0.66						3.72
Earnings per share, diluted (SEK) 1)		0.37			0.65						3.69

STATEMENT OF COMPREHENSIVE INCOME

	Jan - Mar				Jan - Dec
SEK million	2013		2014		2013
Net income		1,204		1,692		12,174
Other comprehensive income
Items that will not be reclassified to profit or loss
Remeasurements of defined benefits pension plans incl. asset ceiling		819		-1,622		3,214
Tax on items that will not be reclassified to profit or loss		-388		329		-1,235
Items that may be reclassified to profit or loss
Cash flow hedges
Gains/losses arising during the period		174		—		251
Reclassification adjustments for gains/losses included in profit or loss		-466		—		-1,072
Adjustments for amounts transferred to initial carrying amount of hedged items		—		—		0
Revaluation of other investments in shares and participations
Fair value remeasurement		—		0		71
Changes in cumulative translation adjustments		-718		401		-1,687
Share of other comprehensive income on JV and associated companies		-16		11		-14
Tax on items that may be reclassified to profit or loss		62		—		179
Total other comprehensive income, net of tax		-533		-881		-293
Total comprehensive income		671		811		11,881
Total comprehensive income attributable to:
Stockholders of the Parent Company		693		1,240		11,712
Non-controlling interest		-22		-429		169

¹⁾  Based on Net income attributable to stockholders of the Parent Company

Ericsson First Quarter Report 2014 19

CONSOLIDATED BALANCE SHEET

	Dec 31		Mar 31
SEK million	2013		2014
ASSETS
Non-current assets
Intangible assets
Capitalized development expenses		3,348		3,212
Goodwill		31,544		32,114
Intellectual property rights, brands and other intangible assets		12,815		11,889
Property, plant and equipment		11,433		11,209
Financial assets
Equity in JV and associated companies		2,568		2,595
Other investments in shares and participations		505		509
Customer finance, non-current		1,294		1,146
Other financial assets, non-current		5,684		5,779
Deferred tax assets		9,103		10,030
		78,294		78,483
Current assets
Inventories		22,759		24,962
Trade receivables		71,013		63,643
Customer finance, current		2,094		1,698
Other current receivables		17,941		18,528
Short-term investments		34,994		41,779
Cash and cash equivalents		42,095		38,096
		190,896		188,706
Total assets		269,190		267,189
EQUITY AND LIABILITIES
Equity
Stockholders’ equity		140,204		141,643
Non-controlling interest in equity of subsidiaries		1,419		990
		141,623		142,633
Non-current liabilities
Post-employment benefits		9,825		11,633
Provisions, non-current		222		198
Deferred tax liabilities		2,650		2,466
Borrowings, non-current		22,067		18,900
Other non-current liabilities		1,459		1,532
		36,223		34,729
Current liabilities
Provisions, current		5,140		4,730
Borrowings, current		7,388		5,737
Trade payables		20,502		20,482
Other current liabilities		58,314		58,878
		91,344		89,827
Total equity and liabilities		269,190		267,189
Of which interest-bearing liabilities and post-employment benefits		39,280		36,270
Of which net cash		37,809		43,605
Assets pledged as collateral		2,556		2,528
Contingent liabilities		657		658

Ericsson First Quarter Report 2014 20

CONSOLIDATED STATEMENT OF CASH FLOWS

	Jan - Mar				Jan - Dec
SEK million	2013		2014		2013
Operating activities
Net income		1,204		1,692		12,174
Adjustments to reconcile net income to cash
Taxes		-1,849		-1,348		-1,323
Earnings/dividends in JV and associated companies		33		-16		258
Depreciation, amortization and impairment losses		2,411		2,360		10,137
Other		-201		549		756
		1,598		3,237		22,002
Changes in operating net assets
Inventories		-1,426		-2,099		4,868
Customer finance, current and non-current		260		558		1,809
Trade receivables		-1,934		7,957		-8,504
Trade payables		-2,948		-110		-2,158
Provisions and post-employment benefits		1,155		-464		-3,298
Other operating assets and liabilities, net		325		323		2,670
		-4,568		6,165		-4,613
Cash flow from operating activities		-2,970		9,402		17,389
Investing activities
Investments in property, plant and equipment		-1,196		-1,034		-4,503
Sales of property, plant and equipment		91		274		378
Acquisitions/divestments of subsidiaries and other operations, net		-136		-849		-2,682
Product development		-282		-197		-915
Other investing activities		298		-169		-1,330
Short-term investments		-2,860		-6,790		-2,057
Cash flow from investing activities		-4,085		-8,765		-11,109
Cash flow before financing activities		-7,055		637		6,280
Financing activities
Dividends paid		-61		—		-9,153
Other financing activities		92		-5,069		-355
Cash flow from financing activities		31		-5,069		-9,508
Effect of exchange rate changes on cash		-214		433		641
Net change in cash and cash equivalents		-7,238		-3,999		-2,587
Cash and cash equivalents, beginning of period		44,682		42,095		44,682
Cash and cash equivalents, end of period		37,444		38,096		42,095

Ericsson First Quarter Report 2014 21

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

	Jan - Mar		Jan - Mar		Jan - Dec
SEK million	2013		2014		2013
Opening balance		138,483		141,623		138,483
Total comprehensive income		671		811		11,881
Sale/repurchase of own shares		21		24		90
Stock purchase plan		82		175		388
Dividends paid		-61		—		-9,153
Transactions with non-controlling interests		-26		—		-66
Closing balance		139,170		142,633		141,623

Ericsson First Quarter Report 2014 22

CONSOLIDATED INCOME STATEMENT – ISOLATED QUARTERS

	2013												2014
Isolated quarters, SEK million	Q1			Q2			Q3			Q4			Q1
Net sales		52,032			55,331			52,981			67,032			47,505
Cost of sales		-35,394			-37,412			-36,028			-42,171			-30,184
Gross income		16,638			17,919			16,953			24,861			17,321
Gross margin (%)		32.0	%		32.4	%		32.0	%		37.1	%		36.5	%
Research and development expenses		-7,877			-7,747			-7,710			-8,902			-8,275
Selling and administrative expenses		-6,643			-6,629			-5,778			-7,223			-6,452
Operating expenses		-14,520			-14,376			-13,488			-16,125			-14,727
Other operating income and expenses		20			-1,040			805			328			21
Shares in earnings of JV and associated companies		-32			-38			-51			-9			15
Operating income		2,106			2,465			4,219			9,055			2,630
Financial income		180			304			678			184			401
Financial expenses		-565			-606			-595			-327			-612
Income after financial items		1,721			2,163			4,302			8,912			2,419
Taxes		-517			-647			-1,292			-2,468			-727
Net income		1,204			1,516			3,010			6,444			1,692
Net income attributable to:
—Stockholders of the Parent Company		1,205			1,469			2,921			6,410			2,120
—Non-controlling interests		-1			47			89			34			-428
Other information
Average number of shares, basic (million)		3,222			3,224			3,227			3,230			3,233
Earnings per share, basic (SEK) 1)		0.37			0.46			0.91			1.98			0.66
Earnings per share, diluted (SEK) 1)		0.37			0.45			0.90			1.97			0.65

¹⁾  Based on Net income attributable to stockholders of the Parent Company

Ericsson First Quarter Report 2014 23

CONSOLIDATED STATEMENT OF CASH FLOWS—ISOLATED QUARTERS

	2013								2014
Isolated quarters, SEK million	Q1		Q2		Q3		Q4		Q1
Operating activities
Net income		1,204		1,516		3,010		6,444		1,692
Adjustments to reconcile net income to cash
Taxes		-1,849		-689		-881		2,096		-1,348
Earnings/dividends in JV and associated companies		33		37		50		138		-16
Depreciation, amortization and impairment losses		2,411		2,436		2,546		2,744		2,360
Other		-201		183		-327		1,101		549
		1,598		3,483		4,398		12,523		3,237
Changes in operating net assets
Inventories		-1,426		600		357		5,337		-2,099
Customer finance, current and non-current		260		912		800		-163		558
Trade receivables		-1,934		3,084		-4,744		-4,910		7,957
Trade payables		-2,948		518		-588		860		-110
Provisions and post-employment benefits		1,155		-1,752		-970		-1,731		-464
Other operating assets and liabilities, net		325		-2,554		2,206		2,693		323
		-4,568		808		-2,939		2,086		6,165
Cash flow from operating activities		-2,970		4,291		1,459		14,609		9,402
Investing activities
Investments in property, plant and equipment		-1,196		-1,278		-778		-1,251		-1,034
Sales of property, plant and equipment		91		11		97		179		274
Acquisitions/divestments of subsidiaries and other operations, net		-136		-39		-1,794		-713		-849
Product development		-282		-214		-237		-182		-197
Other investing activities		298		-203		-230		-1,195		-169
Short-term investments		-2,860		9,209		-144		-8,262		-6,790
Cash flow from investing activities		-4,085		7,486		-3,086		-11,424		-8,765
Cash flow before financing activities		-7,055		11,777		-1,627		3,185		637
Financing activities
Dividends paid		-61		-8,863		-21		-208		—
Other financing activities		92		-4,236		43		3,746		-5,069
Cash flow from financing activities		31		-13,099		22		3,538		-5,069
Effect of exchange rate changes on cash		-214		2,357		-1,711		209		433
Net change in cash and cash equivalents		-7,238		1,035		-3,316		6,932		-3,999
Cash and cash equivalents, beginning of period		44,682		37,444		38,479		35,163		42,095
Cash and cash equivalents, end of period		37,444		38,479		35,163		42,095		38,096

Ericsson First Quarter Report 2014 24

PARENT COMPANY INCOME STATEMENT

	Jan - Mar				Jan - Dec
SEK million	2013		2014		2013
Net sales		—		—		—
Cost of sales		—		—		—
Gross income		—		—		—
Operating expenses		-256		-342		-1,380
Other operating income and expenses		640		665		2,768
Operating income		384		323		1,388
Financial net		792		117		5,856
Income after financial items		1,176		440		7,244
Transfers to (-) / from untaxed reserves		—		—		-142
Taxes		-119		-74		-247
Net income		1,057		366		6,855

STATEMENT OF COMPREHENSIVE INCOME

	Jan - Mar				Jan - Dec
SEK million	2013		2014		2013
Net income		1,057		366		6,855
Cash flow hedges
Fair value remeasurement		—		—		69
Total other comprehensive income, net of tax		—		—		69
Total comprehensive income		1,057		366		6,924

PARENT COMPANY BALANCE SHEET

	Dec 31		Mar 31
SEK million	2013		2014
ASSETS
Fixed assets
Intangible assets		646		591
Tangible assets		571		613
Financial assets		94,741		94,597
		95,958		95,801
Current assets
Inventories		7		9
Receivables		17,247		17,612
Short-term investments		34,520		41,205
Cash and cash equivalents		23,954		21,262
		75,728		80,088
Total assets		171,686		175,889
STOCKHOLDERS’ EQUITY, PROVISIONS AND LIABILITIES
Equity
Restricted equity		48,018		48,018
Non-restricted equity		23,798		24,193
		71,816		72,211
Provisions		2,097		1,978
Non-current liabilities		44,491		42,623
Current liabilities		53,282		59,077
Total stockholders’ equity, provisions and liabilities		171,686		175,889
Assets pledged as collateral		553		525
Contingent liabilities		15,999		17,739

Ericsson First Quarter Report 2014 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, 2013, and should be read in conjunction with that annual report.

As from January 1, 2014, the Company has applied the following new or amended IFRSs and IFRICs:

Amendment to IAS 32, “Financial instruments: Presentation,” Offsetting Financial Assets and Financial Liabilities. This amendment is related to the application guidance in IAS 32, ‘Financial instruments: Presentation,’ and clarifies some of the requirements for offsetting financial assets and financial liabilities on the balance sheet.

IFRIC 21, “Levies.” This interpretation of IAS 37 “Provisions, contingent liabilities and contingent assets” sets out the accounting for an obligation to pay a levy that is not income tax. The interpretation addresses what the obligating event is that gives rise to the need to pay a levy and when a liability should be recognized.

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 significant difference between IFRS effective as per March 31, 2014 and IFRS as endorsed by the EU. However, IFRIC 21 is not yet endorsed by the EU.

In the interim reports of 2013 disclosure was given in relation to IFRS 7 about fair valuation of financial instruments. Due to that the amounts are not considered material this disclosure will not be given in the interim reports as from the first quarter of 2014. Should amounts become material quarterly disclosure will be given as from then.

Ericsson First Quarter Report 2014 26

NET SALES BY SEGMENT BY QUARTER

Segment Modems was consolidated as of October 1, 2013.

	2013												2014
Isolated quarters, SEK million	Q1			Q2			Q3			Q4			Q1
Networks		28,133			28,142			26,655			34,769			24,383
Global Services		21,452			24,851			23,974			27,166			20,356
Of which Professional Services		14,626			16,773			16,229			18,767			15,078
Of which Managed Services		5,888			6,754			6,264			6,574			5,754
Of which Network Rollout		6,826			8,078			7,745			8,399			5,278
Support Solutions		2,447			2,338			2,352			5,097			2,765
Modems		—			—			—			—			1
Total		52,032			55,331			52,981			67,032			47,505
	2013												2014
Sequential change, percent	Q1			Q2			Q3			Q4			Q1
Networks		-20	%		0	%		-5	%		30	%		-30	%
Global Services		-24	%		16	%		-4	%		13	%		-25	%
Of which Professional Services		-23	%		15	%		-3	%		16	%		-20	%
Of which Managed Services		-13	%		15	%		-7	%		5	%		-12	%
Of which Network Rollout		-26	%		18	%		-4	%		8	%		-37	%
Support Solutions		-33	%		-4	%		1	%		117	%		-46	%
Modems		—			—			—			—			—
Total		-22	%		6	%		-4	%		27	%		-29	%
	2013												2014
Year over year change, percent	Q1			Q2			Q3			Q4			Q1
Networks		3	%		1	%		-1	%		-1	%		-13	%
Global Services		4	%		3	%		-1	%		-3	%		-5	%
Of which Professional Services		-2	%		-1	%		-1	%		-1	%		3	%
Of which Managed Services		3	%		4	%		-1	%		-3	%		-2	%
Of which Network Rollout		19	%		13	%		-2	%		-8	%		-23	%
Support Solutions		-19	%		-33	%		-29	%		40	%		13	%
Modems		—			—			—			—			—
Total		2	%		0	%		-3	%		0	%		-9	%
	2013												2014
Year to date, SEK million	Jan - Mar			Jan - Jun			Jan - Sep			Jan - Dec			Jan - Mar
Networks		28,133			56,275			82,930			117,699			24,383
Global Services		21,452			46,303			70,277			97,443			20,356
Of which Professional Services		14,626			31,399			47,628			66,395			15,078
Of which Managed Services		5,888			12,642			18,906			25,480			5,754
Of which Network Rollout		6,826			14,904			22,649			31,048			5,278
Support Solutions		2,447			4,785			7,137			12,234			2,765
Modems		—			—			—			—			1
Total		52,032			107,363			160,344			227,376			47,505
Year to date,	2013												2014
year over year change, percent	Jan - Mar			Jan - Jun			Jan - Sep			Jan - Dec			Jan - Mar
Networks		3	%		2	%		1	%		0	%		-13	%
Global Services		4	%		4	%		2	%		0	%		-5	%
Of which Professional Services		-2	%		-1	%		-1	%		-1	%		3	%
Of which Managed Services		3	%		4	%		2	%		1	%		-2	%
Of which Network Rollout		19	%		16	%		9	%		4	%		-23	%
Support Solutions		-19	%		-26	%		-27	%		-9	%		13	%
Modems		—			—			—			—			—
Total		2	%		1	%		0	%		0	%		-9	%
SALES GROWTH ADJUSTED FOR COMPARABLE UNITS AND CURRENCY (%)
	2013												2014
Sequential change, percent	Q1			Q2			Q3			Q4			Q1
Networks		-17	%		0	%		-3	%		31	%		-30	%
Global Services		-20	%		17	%		-2	%		13	%		-25	%
Support Solutions		-30	%		-5	%		3	%		102	%		-45	%
Modems		—			—			—			—			—
Total		-19	%		6	%		-2	%		27	%		-28	%
Isolated quarter,	2013												2014
year over year change, percent	Q1			Q2			Q3			Q4			Q1
Networks		7	%		8	%		4	%		3	%		-10	%
Global Services		9	%		9	%		3	%		1	%		-3	%
Support Solutions		-3	%		-19	%		-15	%		35	%		4	%
Modems		—			—			—			—			—
Total		7	%		7	%		3	%		4	%		-7	%
Year to date,	2013												2014
year over year change, percent	Jan - Mar			Jan - Jun			Jan - Sep			Jan - Dec			Jan - Mar
Networks		7	%		7	%		6	%		5	%		-10	%
Global Services		9	%		9	%		7	%		5	%		-3	%
Support Solutions		-3	%		-12	%		-13	%		0	%		4	%
Modems		—			—			—			—			—
Total		7	%		7	%		5	%		5	%		-7	%

Ericsson First Quarter Report 2014 27

OPERATING INCOME BY SEGMENT BY QUARTER

	2013												2014
Isolated quarters, SEK million	Q1			Q2			Q3			Q4			Q1
Networks		1,565			1,335			2,557			5,861			2,476
Global Services		726			1,564			1,808			2,087			1,036
Of which Professional Services		1,837			2,285			2,279			2,628			1,893
Of which Network Rollout		-1,111			-721			-471			-541			-857
Support Solutions		-29			-283			-113			1,880			12
Modems		—			—			—			-543			-745
Unallocated 1)		-156			-151			-33			-230			-149
Total		2,106			2,465			4,219			9,055			2,630
	2013												2014
Year to date, SEK million	Jan - Mar			Jan - Jun			Jan - Sep			Jan - Dec			Jan - Mar
Networks		1,565			2,900			5,457			11,318			2,476
Global Services		726			2,290			4,098			6,185			1,036
Of which Professional Services		1,837			4,122			6,401			9,029			1,893
Of which Network Rollout		-1,111			-1,832			-2,303			-2,844			-857
Support Solutions		-29			-312			-425			1,455			12
Modems		—			—			—			-543			-745
Unallocated 1)		-156			-307			-340			-570			-149
Total		2,106			4,571			8,790			17,845			2,630
OPERATING MARGIN BY SEGMENT BY QUARTER
	2013												2014
As percentage of net sales, isolated quarters	Q1			Q2			Q3			Q4			Q1
Networks		6	%		5	%		10	%		17	%		10	%
Global Services		3	%		6	%		8	%		8	%		5	%
Of which Professional Services		13	%		14	%		14	%		14	%		13	%
Of which Network Rollout		-16	%		-9	%		-6	%		-6	%		-16	%
Support Solutions		-1	%		-12	%		-5	%		37	%		0	%
Modems		—			—			—			—			—
Total		4	%		4	%		8	%		14	%		6	%
	2013												2014
As percentage of net sales, Year to date	Jan - Mar			Jan - Jun			Jan - Sep			Jan - Dec			Jan - Mar
Networks		6	%		5	%		7	%		10	%		10	%
Global Services		3	%		5	%		6	%		6	%		5	%
Of which Professional Services		13	%		13	%		13	%		14	%		13	%
Of which Network Rollout		-16	%		-12	%		-10	%		-9	%		-16	%
Support Solutions		-1	%		-7	%		-6	%		12	%		0	%
Modems		—			—			—			—			—
Total		4	%		4	%		5	%		8	%		6	%

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

Ericsson First Quarter Report 2014 28

EBITA BY SEGMENT BY QUARTER

	2013												2014
Isolated quarters, SEK million	Q1			Q2			Q3			Q4			Q1
Networks		2,302			2,074			3,320			6,525			3,052
Global Services		942			1,783			2,043			2,342			1,257
Of which Professional Services		2,009			2,443			2,466			2,820			2,073
Of which Network Rollout		-1,067			-660			-423			-478			-816
Support Solutions		118			-132			38			2,076			192
Modems		—			—			—			-499			-699
Unallocated 1)		-155			-150			-32			-229			-149
Total		3,207			3,575			5,369			10,215			3,653
	2013												2014
Year to date, SEK million	Jan - Mar			Jan - Jun			Jan - Sep			Jan - Dec			Jan - Mar
Networks		2,302			4,376			7,696			14,221			3,052
Global Services		942			2,725			4,768			7,110			1,257
Of which Professional Services		2,009			4,452			6,918			9,738			2,073
Of which Network Rollout		-1,067			-1,727			-2,150			-2,628			-816
Support Solutions		118			-14			24			2,100			192
Modems		—			—			—			-499			-699
Unallocated 1)		-155			-305			-337			-566			-149
Total		3,207			6,782			12,151			22,366			3,653
EBITA MARGIN BY SEGMENT BY QUARTER
	2013												2014
As percentage of net sales, isolated quarters	Q1			Q2			Q3			Q4			Q1
Networks		8	%		7	%		12	%		19	%		13	%
Global Services		4	%		7	%		9	%		9	%		6	%
Of which Professional Services		14	%		15	%		15	%		15	%		14	%
Of which Network Rollout		-16	%		-8	%		-5	%		-6	%		-15	%
Support Solutions		5	%		-6	%		2	%		41	%		7	%
Modems		—			—			—			—			—
Total		6	%		6	%		10	%		15	%		8	%
	2013												2014
As percentage of net sales, year to date	Jan - Mar			Jan - Jun			Jan - Sep			Jan - Dec			Jan - Mar
Networks		8	%		8	%		9	%		12	%		13	%
Global Services		4	%		6	%		7	%		7	%		6	%
Of which Professional Services		14	%		14	%		15	%		15	%		14	%
Of which Network Rollout		-16	%		-12	%		-9	%		-8	%		-15	%
Support Solutions		5	%		0	%		0	%		17	%		7	%
Modems		—			—			—			—			—
Total		6	%		6	%		8	%		10	%		8	%

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

Ericsson First Quarter Report 2014 29

NET SALES BY REGION BY QUARTER

	2013												2014
Isolated quarters, SEK million	Q1			Q2			Q3			Q4			Q1
North America		15,773			15,341			14,453			13,772			12,215
Latin America		4,374			5,565			5,294			6,749			4,710
Northern Europe & Central Asia 1) 2)		2,283			2,708			2,949			3,678			2,436
Western & Central Europe 2)		4,349			4,522			4,399			5,215			4,381
Mediterranean 2)		5,271			6,159			5,659			7,067			4,785
Middle East		3,160			3,978			4,386			5,914			3,859
Sub Saharan Africa		2,131			2,653			2,693			2,572			1,813
India		1,606			1,279			1,280			1,973			1,695
North East Asia		6,054			6,642			6,053			8,649			4,908
South East Asia & Oceania		4,129			3,758			3,617			4,283			3,446
Other 1) 2)		2,902			2,726			2,198			7,160			3,257
Total		52,032			55,331			52,981			67,032			47,505
1)   Of which in Sweden		1,020			1,276			798			1,333			999
2)   Of which in EU		9,782			10,816			10,111			12,835			9,720
	2013												2014
Sequential change, percent	Q1			Q2			Q3			Q4			Q1
North America		-7	%		-3	%		-6	%		-5	%		-11	%
Latin America		-33	%		27	%		-5	%		27	%		-30	%
Northern Europe & Central Asia 1) 2)		-24	%		19	%		9	%		25	%		-34	%
Western & Central Europe 2)		-20	%		4	%		-3	%		19	%		-16	%
Mediterranean 2)		-25	%		17	%		-8	%		25	%		-32	%
Middle East		-38	%		26	%		10	%		35	%		-35	%
Sub Saharan Africa		-40	%		24	%		2	%		-4	%		-30	%
India		0	%		-20	%		0	%		54	%		-14	%
North East Asia		-41	%		10	%		-9	%		43	%		-43	%
South East Asia & Oceania		-9	%		-9	%		-4	%		18	%		-20	%
Other 1) 2)		-3	%		-6	%		-19	%		226	%		-55	%
Total		-22	%		6	%		-4	%		27	%		-29	%
1)   Of which in Sweden		-20	%		25	%		-37	%		67	%		-25	%
2)   Of which in EU		-24	%		11	%		-7	%		27	%		-24	%
	2013												2014
Year-over-year change, percent	Q1			Q2			Q3			Q4			Q1
North America		23	%		18	%		3	%		-19	%		-23	%
Latin America		-9	%		6	%		-2	%		4	%		8	%
Northern Europe & Central Asia 1) 2)		0	%		-19	%		9	%		23	%		7	%
Western & Central Europe 2)		1	%		10	%		21	%		-4	%		1	%
Mediterranean 2)		14	%		-1	%		5	%		0	%		-9	%
Middle East		0	%		7	%		21	%		17	%		22	%
Sub Saharan Africa		-3	%		-5	%		-4	%		-28	%		-15	%
India		13	%		-25	%		-26	%		23	%		6	%
North East Asia		-34	%		-21	%		-28	%		-16	%		-19	%
South East Asia & Oceania		22	%		2	%		3	%		-5	%		-17	%
Other 1) 2)		2	%		-13	%		-34	%		141	%		12	%
Total		2	%		0	%		-3	%		0	%		-9	%
1)   Of which in Sweden		22	%		0	%		-52	%		5	%		-2	%
2)   Of which in EU		3	%		-3	%		-5	%		-1	%		-1	%

Ericsson First Quarter Report 2014 30

NET SALES BY REGION BY QUARTER (continued)

	2013												2014
Year to date, SEK million	Jan - Mar			Jan - Jun			Jan - Sep			Jan - Dec			Jan - Mar
North America		15,773			31,114			45,567			59,339			12,215
Latin America		4,374			9,939			15,233			21,982			4,710
Northern Europe & Central Asia 1) 2)		2,283			4,991			7,940			11,618			2,436
Western & Central Europe 2)		4,349			8,871			13,270			18,485			4,381
Mediterranean 2)		5,271			11,430			17,089			24,156			4,785
Middle East		3,160			7,138			11,524			17,438			3,859
Sub Saharan Africa		2,131			4,784			7,477			10,049			1,813
India		1,606			2,885			4,165			6,138			1,695
North East Asia		6,054			12,696			18,749			27,398			4,908
South East Asia & Oceania		4,129			7,887			11,504			15,787			3,446
Other 1) 2)		2,902			5,628			7,826			14,986			3,257
Total		52,032			107,363			160,344			227,376			47,505
1)   Of which in Sweden		1,020			2,296			3,094			4,427			999
2)   Of which in EU		9,782			20,598			30,709			43,544			9,720
Year to date,	2013												2014
year-over-year change, percent	Jan - Mar			Jan - Jun			Jan - Sep			Jan - Dec			Jan - Mar
North America		23	%		21	%		14	%		5	%		-23	%
Latin America		-9	%		-1	%		-2	%		0	%		8	%
Northern Europe & Central Asia 1) 2)		0	%		-12	%		-5	%		2	%		7	%
Western & Central Europe 2)		1	%		6	%		10	%		6	%		1	%
Mediterranean 2)		14	%		6	%		5	%		4	%		-9	%
Middle East		0	%		4	%		10	%		12	%		22	%
Sub Saharan Africa		-3	%		-4	%		-4	%		-11	%		-15	%
India		13	%		-8	%		-14	%		-5	%		6	%
North East Asia		-34	%		-28	%		-28	%		-24	%		-19	%
South East Asia & Oceania		22	%		12	%		9	%		5	%		-17	%
Other1) 2)		2	%		-6	%		-16	%		22	%		12	%
Total		2	%		1	%		0	%		0	%		-9	%
1)   Of which in Sweden		22	%		9	%		-18	%		-12	%		-2	%
2)   Of which in EU		3	%		-1	%		-2	%		-2	%		-1	%

TOP 5 COUNTRIES IN SALES

	Q1						Jan - Mar
Country	2013			2014			2013			2014
UNITED STATES		30	%		26	%		30	%		26	%
CHINA		4	%		5	%		4	%		5	%
JAPAN		7	%		4	%		7	%		4	%
INDIA		3	%		4	%		3	%		4	%
KOREA		2	%		4	%		2	%		4	%

Ericsson First Quarter Report 2014 31

NET SALES BY REGION BY SEGMENT

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.

	Q1 2014, SEK million															Jan - Mar 2014, SEK million
	Net- works			Global Services			Support Solutions			Modems			Total			Net- works			Global Services			Support Solutions			Modems			Total
North America		6,545			5,038			632			—			12,215			6,545			5,038			632			—			12,215
Latin America		2,435			2,038			237			—			4,710			2,435			2,038			237			—			4,710
Northern Europe & Central Asia		1,373			1,004			59			—			2,436			1,373			1,004			59			—			2,436
Western & Central Europe		1,794			2,458			129			—			4,381			1,794			2,458			129			—			4,381
Mediterranean		1,988			2,606			191			—			4,785			1,988			2,606			191			—			4,785
Middle East		1,808			1,872			179			—			3,859			1,808			1,872			179			—			3,859
Sub Saharan Africa		725			830			258			—			1,813			725			830			258			—			1,813
India		888			699			108			—			1,695			888			699			108			—			1,695
North East Asia		2,770			2,025			113			—			4,908			2,770			2,025			113			—			4,908
South East Asia & Oceania		1,862			1,492			92			—			3,446			1,862			1,492			92			—			3,446
Other		2,195			294			767			1			3,257			2,195			294			767			1			3,257
Total		24,383			20,356			2,765			1			47,505			24,383			20,356			2,765			1			47,505
Share of Total		51	%		43	%		6	%		0	%		100	%		51	%		43	%		6	%		0	%		100	%

	Q1 2014
Sequential change, percent	Net- works			Global Services			Support Solutions			Modems		Total
North America		23	%		-32	%		-39	%		—		-11	%
Latin America		-31	%		-30	%		-20	%		—		-30	%
Northern Europe & Central Asia		-41	%		-20	%		-29	%		—		-34	%
Western & Central Europe		-13	%		-16	%		-43	%		—		-16	%
Mediterranean		-31	%		-33	%		-35	%		—		-32	%
Middle East		-40	%		-20	%		-69	%		—		-35	%
Sub Saharan Africa		-44	%		-22	%		18	%		—		-30	%
India		-25	%		-2	%		38	%		—		-14	%
North East Asia		-54	%		-19	%		-29	%		—		-43	%
South East Asia & Oceania		-22	%		-14	%		-44	%		—		-20	%
Other		-55	%		-18	%		-61	%		—		-55	%
Total		-30	%		-25	%		-46	%		—		-29	%

	Q1 2014
Year over year change, percent	Net- works			Global Services			Support Solutions			Modems		Total
North America		-29	%		-18	%		30	%		—		-23	%
Latin America		22	%		1	%		-33	%		—		8	%
Northern Europe & Central Asia		9	%		5	%		-8	%		—		7	%
Western & Central Europe		-5	%		5	%		10	%		—		1	%
Mediterranean		-19	%		-3	%		35	%		—		-9	%
Middle East		28	%		27	%		-34	%		—		22	%
Sub Saharan Africa		-34	%		1	%		23	%		—		-15	%
India		3	%		11	%		-11	%		—		6	%
North East Asia		-18	%		-22	%		30	%		—		-19	%
South East Asia & Oceania		-28	%		5	%		-15	%		—		-17	%
Other		10	%		-28	%		57	%		—		12	%
Total		-13	%		-5	%		13	%		—		-9	%

	Jan - Mar 2014
Year over year change, percent	Net- works			Global Services			Support Solutions			Modems		Total
North America		-29	%		-18	%		30	%		—		-23	%
Latin America		22	%		1	%		-33	%		—		8	%
Northern Europe & Central Asia		9	%		5	%		-8	%		—		7	%
Western & Central Europe		-5	%		5	%		10	%		—		1	%
Mediterranean		-19	%		-3	%		35	%		—		-9	%
Middle East		28	%		27	%		-34	%		—		22	%
Sub Saharan Africa		-34	%		1	%		23	%		—		-15	%
India		3	%		11	%		-11	%		—		6	%
North East Asia		-18	%		-22	%		30	%		—		-19	%
South East Asia & Oceania		-28	%		5	%		-15	%		—		-17	%
Other		10	%		-28	%		57	%		—		12	%
Total		-13	%		-5	%		13	%		—		-9	%

Ericsson First Quarter Report 2014 32

PROVISIONS

	2013								2014
Isolated quarters, SEK million	Q1		Q2		Q3		Q4		Q1
Opening balance		8,638		9,499		7,716		6,414		5,362
Additions		1,915		1,215		658		911		625
Utilization/Cash out		-758		-2,365		-1,534		-1,364		-977
Of which restructuring		-324		-1,001		-457		-307		-512
Reversal of excess amounts		-209		-586		-191		-575		-88
Reclassification, translation difference and other		-87		-47		-235		-24		6
Closing balance		9,499		7,716		6,414		5,362		4,928
	2013								2014
Year to date, SEK million	Jan - Mar		Jan - Jun		Jan - Sep		Jan - Dec		Jan - Mar
Opening balance		8,638		8,638		8,638		8,638		5,362
Additions		1,915		3,130		3,788		4,699		625
Utilization/Cash out		-758		-3,123		-4,657		-6,021		-977
Of which restructuring		-324		-1,325		-1,782		-2,089		-512
Reversal of excess amounts		-209		-795		-986		-1,561		-88
Reclassification, translation difference and other		-87		-134		-369		-393		6
Closing balance		9,499		7,716		6,414		5,362		4,928

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

	2013								2014
Isolated quarters, SEK million	Q1		Q2		Q3		Q4		Q1
Additions
Property, plant and equipment		1,196		1,278		778		1,251		1,034
Capitalized development expenses		282		214		237		182		197
IPR, brands and other intangible assets		196		22		1,418		562		77
Total		1,674		1,514		2,433		1,995		1,308
Depreciation, amortization and impairment losses
Property, plant and equipment		1,008		983		1,008		1,210		1,004
Capitalized development expenses		303		342		388		374		333
IPR, brands and other intangible assets, etc.		1,100		1,111		1,150		1,160		1,023
Total		2,411		2,436		2,546		2,744		2,360

RECONCILIATION TABLE, NON-IFRS MEASUREMENTS

CASH CONVERSION

	2013												2014
Isolated quarters, SEK million	Q1			Q2			Q3			Q4			Q1
Net income		1,204			1,516			3,010			6,444			1,692
Net income reconciled to cash		1,598			3,483			4,398			12,523			3,237
Cash flow from operating activities		-2,970			4,291			1,459			14,609			9,402
Cash conversion		-185.9	%		123.2	%		33.2	%		116.7	%		290.5	%

NET CASH, END OF PERIOD

	Dec 31		Mar 31
SEK million	2013		2014
Cash and cash equivalents		42,095		38,096
+ Short term investments		34,994		41,779
- Borrowings, non-current		22,067		18,900
- Borrowings, current		7,388		5,737
- Post employment benefits		9,825		11,633
Net cash, end of period		37,809		43,605

Ericsson First Quarter Report 2014 33

OTHER INFORMATION

	Jan - Mar						Jan - Dec
	2013			2014			2013
Number of shares and earnings per share
Number of shares, end of period (million)		3,305			3,305			3,305
Of which class A-shares (million)		262			262			262
Of which class B-shares (million)		3,043			3,043			3,043
Number of treasury shares, end of period (million)		82			71			74
Number of shares outstanding, basic, end of period (million)		3,223			3,234			3,231
Numbers of shares outstanding, diluted, end of period (million)		3,254			3,265			3,262
Average number of treasury shares (million)		83			72			79
Average number of shares outstanding, basic (million)		3,222			3,233			3,226
Average number of shares outstanding, diluted (million) 1)		3,253			3,264			3,257
Earnings per share, basic (SEK)		0.37			0.66			3.72
Earnings per share, diluted (SEK) 1)		0.37			0.65			3.69
Earnings per share (Non-IFRS), diluted (SEK) 2)		0.61			0.88			4.69
Earnings per share (Non-IFRS, excluding restructuring), diluted (SEK) 2)		0.99			0.90			5.62
Ratios
Days sales outstanding		108			112			97
Inventory turnover days		76			72			62
Payable days		55			62			53
Equity ratio (%)		51.4	%		53.4	%		52.6	%
Return on equity (%)		3.5	%		6.0	%		8.7	%
Return on capital employed (%)		5.1	%		6.7	%		10.7	%
Capital turnover (times)		1.2			1.1			1.3
Cash conversion %, end of period		-185.9	%		290.5	%		79.0	%
Payment readiness, end of period		80,024			87,108			82,631
Payment readiness, as percentage of sales		38.4	%		45.8	%		36.3	%
Exchange rates used in the consolidation
SEK/EUR - average rate		8.50			8.89			8.67
- closing rate		8.34			8.95			8.90
SEK/USD - average rate		6.46			6.48			6.52
- closing rate		6.51			6.48			6.46
Other
Regional inventory, end of period,		20,781			16,456			14,652
Export sales from Sweden		26,154			24,078			108,944

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

²⁾  Excluding amortizations and write-downs of acquired intangibles

NUMBER OF EMPLOYEES

	2013								2014
End of period	Mar 31		Jun 30		Sep 30		Dec 31		Mar 31
North America		15,404		15,047		14,825		14,931		14,902
Latin America		11,153		11,412		11,402		11,445		9,731
Northern Europe & Central Asia 1)		21,043		21,148		22,038		21,892		21,484
Western & Central Europe		11,118		11,235		11,612		11,530		11,455
Mediterranean		12,015		12,405		12,350		12,314		12,253
Middle East		3,951		3,951		3,766		3,752		3,749
Sub Saharan Africa		1,967		2,101		2,081		2,084		2,094
India		14,588		16,183		16,978		17,622		17,991
North East Asia		14,088		14,059		14,625		14,503		13,490
South East Asia & Oceania		4,321		4,264		4,312		4,267		4,234
Total		109,648		111,805		113,989		114,340		111,383
1) Of which in Sweden		17,550		17,264		18,008		17,858		17,545

Ericsson First Quarter Report 2014 34

RESTRUCTURING CHARGES BY FUNCTION

	2013								2014
Isolated quarters, SEK million	Q1		Q2		Q3		Q4		Q1
Cost of sales		-698		-707		-600		-652		-82
Research and development expenses		-552		-117		-64		-139		-19
Selling and administrative expenses		-589		-110		-55		-170		-29
Total		-1,839		-934		-719		-961		-130
	2013								2014
Year to date, SEK million	Jan - Mar		Jan - Jun		Jan - Sep		Jan - Dec		Jan - Mar
Cost of sales		-698		-1,405		-2,005		-2,657		-82
Research and development expenses		-552		-669		-733		-872		-19
Selling and administrative expenses		-589		-699		-754		-924		-29
Total		-1,839		-2,773		-3,492		-4,453		-130

RESTRUCTURING CHARGES BY SEGMENT

	2013								2014
Isolated quarters, SEK million	Q1		Q2		Q3		Q4		Q1
Networks		-1,251		-316		-299		-316		-93
Global Services		-385		-586		-410		-616		-32
Of which Professional Services		-270		-389		-290		-420		-25
Of which Network Rollout		-115		-197		-120		-196		-7
Support Solutions		-111		-34		-11		-30		-5
Modems		—		—		—		—		—
Unallocated		-92		2		1		1		0
Total		-1,839		-934		-719		-961		-130
	2013								2014
Year to date, SEK million	Jan - Mar		Jan - Jun		Jan - Sep		Jan - Dec		Jan - Mar
Networks		-1,251		-1,567		-1,866		-2,182		-93
Global Services		-385		-971		-1,381		-1,997		-32
Of which Professional Services		-270		-659		-949		-1,369		-25
Of which Network Rollout		-115		-312		-432		-628		-7
Support Solutions		-111		-145		-156		-186		-5
Modems		—		—		—		—		—
Unallocated		-92		-90		-89		-88		0
Total		-1,839		-2,773		-3,492		-4,453		-130

Ericsson First Quarter Report 2014 35