Telefonaktiebolaget LM Ericsson (publ) (ERIC) Q4 2022 Earnings Call Transcript

For the period ending December 31, 2022

December 31, 2022 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Peter Nyquist

Hi everyone and welcome to the Fourth Quarter and Full Year Result of Ericsson 2022. Before starting, I just want to say that we have some issues with the streaming of this conference call, so we are focusing on the audio right now. So, everyone joining on audio, you will be able to listen in now, but we might have some issues with the streaming.

With that said, I will also welcome our CEO, Börje Ekholm and our CFO, Carl Mellander. As usual, we will have a presentation and then we will have a question-and-answer session. In order to ask question, you will need to join the conference by audio, as I said, and the details for that is to be found on our press release or on ericsson.com.

But before handing over to Börje and Carl, I would like to read the following. During today's presentation, we will be making forward-looking statements. These statements are based on our current expectations and certain planning assumptions, which are subject to risks and uncertainties.

The actual results may differ material due to factor mentioned in today's press release and discussed in this conference call. With -- we would like to encourage you to read about these risks and uncertainties in the earnings report itself, as well as in the annual report.

With that said, I would like to hand over to our CEO, Börje Ekholm. So, please Börje.

Börje Ekholm

Thank you, Peter, and good morning, everyone, and thank you all for joining us. So, today we're excited to present another quarter of good progress towards our strategic and financial goals to -- that we have outlined to you at our Capital Markets Day about a month ago.

From a financial perspective, 2022 was one of our best years in the company's history. With our fourth quarter results, we're on track to deliver on our long-term EBITA target of 15% to 18% by 2024.

Target achievement is supported by cost savings, growth in our IPO revenues, portfolio changes, and that includes, of course, reaching breakeven on cloud software and services, but also to exit some loss-making businesses, and we are executing on these initiatives.

We made significant progress despite macroeconomic headwinds during the quarter. I am truly excited about Ericsson's future as we continue to execute on our strategy and we have full confidence in our long-term development.