10q10k10q10k.net

What changed in ERICSSON LM TELEPHONE CO's 20-F — 2024 vs 2025

vs

Paragraph-level year-over-year comparison of ERICSSON LM TELEPHONE CO's 2024 and 2025 20-F annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+45 added−44 removedSource: 20-F (2026-03-12) vs 20-F (2025-03-11)

Top changes in ERICSSON LM TELEPHONE CO's 2025 20-F

45 paragraphs added · 44 removed · 35 edited across 4 sections

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

20 edited+10 added−8 removed4 unchanged
Biggest changeBusiness Overview The information set forth under the following headings of the 2024 Swedish Annual Report (adjusted version) is incorporated herein by reference: • Financial Report • This is Ericsson • Strategy – Creating value through mobile network innovation • Board of Directors’ Report • Business in 2024 • Financial highlights – Research and development, patents and licensing • Financial highlights – Seasonality • Business results – Segments • Business results – Market areas • Sourcing and supply • Sustainability and corporate responsibility • Notes to the consolidated financial statements • Note B1 – Segment information • Risk factors • Risks related to business activities and industry • Risks related to Ericsson’s financial condition • Risks related to legal and regulatory matters • Risks related to cybersecurity matters • Risks related to environmental, social and business conduct matters • Corporate Governance Report • Regulation Disclosure pursuant to Section 219 of the Iran Threat Reduction and Syria Human Rights Act of 2012 (“ITRA”) During 2024, Ericsson’s recorded net sales related to business in Iran was SEK -1 million, from internal clearing of old and minor items as part of wind down activities.
Biggest changeEricsson’s supply and component hubs are located in Sweden, Belgium, Germany, The Netherlands, the United States, Mexico, the United Arab Emirates, India, Malaysia, Singapore and China. • Notes to the consolidated financial statements • Note B1 – Segment information • Risk factors • Risks related to business activities and industry • Risks related to Ericsson’s financial condition • Risks related to legal and regulatory matters • Risks related to cybersecurity matters • Risks related to environmental, social and business conduct matters • Corporate Governance Report • Regulation Disclosure pursuant to Section 219 of the Iran Threat Reduction and Syria Human Rights Act of 2012 (“ITRA”) In 2018, Ericsson initiated its wind down in Iran, and, in 2025, had no business engagements in Iran.
Organizational Structure The following list shows certain shareholdings owned directly and indirectly by our Parent Company as of December 31, 2024. A complete list of shareholdings, prepared in accordance with the Swedish Annual Accounts Act and filed with the Swedish Companies Registration Office (Bolagsverket), may be obtained upon request to: Telefonaktiebolaget LM Ericsson, External Reporting, SE-164 83 Stockholm, Sweden.
Organizational Structure The following list shows certain shareholdings owned directly and indirectly by our Parent Company as of December 31, 2025. A complete list of shareholdings, prepared in accordance with the Swedish Annual Accounts Act and filed with the Swedish Companies Registration Office (Bolagsverket), may be obtained upon request to: Telefonaktiebolaget LM Ericsson, External Reporting, SE-164 83 Stockholm, Sweden.
The information set forth under the following headings of the 2024 Swedish Annual Report (adjusted version) is incorporated herein by reference: • Financial Report • Board of Directors’ Report • Financial highlights – Capital expenditures • Notes to the consolidated financial statements • Note C2 – Property, plant and equipment • Note C3 – Leases • Risk factors • Risks related to legal and regulatory matters • Risks related to environmental, social and business conduct matters ITEM 4A.
The information set forth under the following headings of the 2025 Swedish Annual Report (adjusted version) is incorporated herein by reference: • Financial Report • Board of Directors’ Report • Financial highlights – Capital expenditure • Notes to the consolidated financial statements • Note C2 – Property, plant and equipment • Note C3 – Leases • Risk factors • Risks related to legal and regulatory matters • Risks related to environmental, social and business conduct matters ITEM 4A.
The majority of the floor space within our production facilities is used for assembly and test. 2024 2023 2022 Sites Thousands of sq meters** Sites Thousands of sq meters** Sites Thousands of sq meters** Sweden 1 5 1 5 1 5 China 1 10.4 1 13.9 1 13.9 Estonia 1 9 1 9 1 9 Brazil 1 8.3 1 7 1 6.5 United States 1 10.1 1 9 1 6 Total 5 42.8 5 43.9 5 40.4 * Test capacity utilization. ** Floor space in square meters does not include any warehouses or transportation areas.
The majority of the floor space within our production facilities is used for assembly and test. 2025 2024 2023 Sites Thousands of sq meters* Sites Thousands of sq meters* Sites Thousands of sq meters* Sweden 1 3.7 1 5 1 5 China 1 10.4 1 10.4 1 13.9 Estonia 1 9 1 9 1 9 Brazil 1 8.3 1 8.3 1 7 United States 1 10.3 1 10.1 1 9 Romania 1 9 1 9 1 10 Mexico 1 7.5 1 7.5 1 7.5 Total 7 58.20 7 59.0 7 61.0 * Floor space in square meters does not include any warehouses or transportation areas.
Ericsson Indonesia Indonesia 95 9,531 614 Ericsson India Private Limited India 100 291 51 Ericsson-LG Co Ltd. Korea 75 285 2,279 Ericsson (Malaysia) Sdn. Bhd. Malaysia 100 3 131 L. M. Ericsson (Nigeria) Limited Nigeria 100 50 10 Ericsson South Africa PTY. Ltd South Africa 70 — 94 Ericsson Taiwan Ltd. Taiwan 90 270 36 Ericsson (Thailand) Ltd.
Ericsson Indonesia Indonesia 95 9,531 614 Ericsson India Private Limited India 100 291 51 Ericsson Korea Partners Co., Ltd. Korea, Republic of 75 285 2,087 Ericsson (Malaysia) Sdn. Bhd. Malaysia 100 3 131 Ericsson South Africa (Pty.) Ltd South Africa 70 — 94 Ericsson Taiwan Ltd. Taiwan 90 270 36 Ericsson (Thailand) Ltd.
United Kingdom 100 53 1,663 Other (Europe, excluding Sweden) — — 555 Ericsson Canada Inc. Canada 100 — 221 Ericsson Holding II Inc. United States 100 — 34,295 Ericsson Smart Factory Inc. United States 100 — 424 Ericsson Global Network Platform Holding Inc. United States 100 — 18,031 Companía Ericsson S.A.C.I.
United Kingdom 100 53 1,663 Other (Europe, excluding Sweden) — — 255 Ericsson Canada Inc. Canada 100 — 221 Ericsson Holding II Inc. United States 100 — 34,295 Ericsson Smart Factory Inc. United States 100 — 424 Ericsson Global Network Platform Holding Inc.
Ericsson does not normally allocate net income on a country-by-country or activity-by-activity basis, other than as set forth in Ericsson’s consolidated financial statements prepared in accordance with IFRS as issued by the IASB.
Ericsson is continuing its efforts to liquidate its local legal entity, in accordance with applicable sanctions and local law requirements. Ericsson does not normally allocate gross revenue or net income on a country-by-country or activity-by-activity basis, other than as set forth in Ericsson’s consolidated financial statements prepared in accordance with IFRS as issued by the IASB.
Argentina 95 (1) 7,677 10 Ericsson de Colombia S.A.S Colombia 100 701 178 Ericsson Telecom S.A. de C.V. Mexico 100 1,439 576 Other (United States, Latin America) — — 384 Teleric Pty Ltd. Australia 100 20 100 Ericsson (China) Company Ltd. China 100 65 475 P.T.
United States 100 — 18,701 Ericsson de Colombia S.A.S Colombia 100 701 178 Ericsson Antenna Technology Mexico S.A. de C.V. Mexico 100 589 239 Ericsson Telecom S.A. de C.V. Mexico 100 1,439 576 Other (Americas) — — 232 Teleric Pty Ltd. Australia 100 20 100 Ericsson (China) Company Ltd. China 100 65 475 P.T.
Shares: Ericsson’s Class A and Class B shares are traded on Nasdaq Stockholm. In the US, our American Depository Shares (“ADS”), each representing one underlying Class B share, are traded on NASDAQ New York. Parent Company operations: The business of the Parent Company, Telefonaktiebolaget LM Ericsson, consists mainly of corporate management, holding company functions and internal banking activities.
Shares: Ericsson’s Class A and Class B shares are traded on Nasdaq Stockholm. In the US, our American Depository Shares (“ADS”), each representing one underlying Class B share, are traded on NASDAQ New York.
The information set forth under the following headings of the 2024 Swedish Annual Report (adjusted version) is incorporated herein by reference: • Financial Report • This is Ericsson • Strategy – Creating value through mobile network innovation • Board of Directors’ Report • Business in 2024 • Financial highlights — Capital expenditures For capital expenditures, we typically use available cash from operations. • Notes to the consolidated financial statements • Note E2 – Business combinations • Note H6 – Events after the reporting period B.
Ericsson’s enterprise solutions provide superior connectivity to businesses and advanced network capabilities to application developers. 2 Table of Contents The information set forth under the following headings of the 2025 Swedish Annual Report (adjusted version) is incorporated herein by reference: • Financial Report • This is Ericsson • Strategy • Leading mobile networks to drive an AI-powered world • Leadership in mobile networks • Scaling the mobile platform • Strategic foundation • 150 years of connectivity • Board of Directors’ Report • Financial highlights – Capital expenditure For capital expenditures, we typically use available cash from operations. • Notes to the consolidated financial statements • Note E2 – Business combinations • Note H6 – Events after the reporting period B.
During 2024, existing bank guarantees issued by Maskan Bank, Parsian Bank, Post Bank of Iran, Bank Mellat and Tejarat Bank (local banks in Iran) to secure Iranian customer payment obligations to Ericsson were renewed.
One local performance bond for the local legal entity has been renewed with Saman Bank. Existing bank guarantees issued to Ericsson by Maskan Bank, Parsian Bank, Post Bank of Iran, Bank Mellat and Tejarat Bank (local banks in Iran) to secure Iranian customer payment obligations related to earlier business engagements were renewed. C.
Thailand 49 (2) 90 17 Ericsson Telekomünikasyon A.Ş. Turkey 100 5 150 Other countries (the rest of the world) — — 327 Total 93,569 Joint ventures and associated companies Concealfab Co United States 36 — 298 Leone Media Inc. United States 46 134 — Ericsson Nikola Tesla d.d.
Thailand 49 (1) 90 17 Ericsson Telekomünikasyon A.Ş. Turkey 100 5 150 Other (the rest of the world) — — 463 Total 95,154 Associated companies Leone Media Inc. United States 46 134 — Ericsson Nikola Tesla d.d. Croatia 49 65 330 Total 330 1) Through subsidiary holdings, total holdings amount to 74% of Ericsson (Thailand) Ltd.
Domicile Percentage of ownership Par value in local currency, million Carrying value, SEK million Subsidiary companies Ericsson AB 556056-6258 Sweden 100 50 20,731 Ericsson Shared Services AB 556251-3266 Sweden 100 361 2,216 Datacenter i Rosersberg AB 556895-3748 Sweden 100 — 74 Datacenter i Mjärdevi Aktiebolag 556366-2302 Sweden 100 10 69 Aktiebolaget Aulis 556030-9899 Sweden 100 14 6 Other (Sweden) — — 736 Ericsson Austria GmbH Austria 100 4 94 Ericsson Danmark A/S Denmark 100 90 216 Oy LM Ericsson Ab Finland 100 13 196 Ericsson France SAS France 100 21 524 Ericsson Antenna Technology Germany GmbH Germany 100 2 21 Ericsson Germany GmbH Germany 100 1 1,816 Ericsson Hungary Ltd.
Domicile Percentage of ownership Par value in local currency, million Carrying value, SEK million Subsidiary companies Ericsson AB 556056-6258 Sweden 100 50 20,731 Ericsson Shared Services AB 556251-3266 Sweden 100 361 2,216 Red Bee Media Holding AB 559113-9729 Sweden 100 — 773 Ericsson Insurance (Försäkring) AB 516406-0534 Sweden 100 50 469 Datacenter i Rosersberg AB 556895-3748 Sweden 100 — 74 Datacenter i Mjärdevi Aktiebolag 556366-2302 Sweden 100 10 69 Ericsson Mobile Financial Services AB 559335-5059 Sweden 100 — 15 Ericsson Software Technology Holding AB 559094-8963 Sweden 100 — 7 Aktiebolaget Aulis 556030-9899 Sweden 100 14 6 Other (Sweden) — — 374 Ericsson S.A/N.V.
For more information regarding risks associated with joint ventures, strategic alliances and third-party agreements, please see “Item 3.D. Risk Factors.” Company history and development Innovating to empower people, business and society Our origins date back to 1876 when Alexander Graham Bell filed a patent application in the United States for the telephone.
Risk Factors.” Company history and development Innovating to empower people, business and society Our origins date back to 1876 when Alexander Graham Bell filed a patent application in the United States for the telephone. The same year, Lars Magnus Ericsson opened a small workshop in Stockholm to repair telegraph instruments and other electrical and mechanical equipment.
Our Parent Company operations also include customer credit management activities performed by Ericsson Credit AB on a commission basis. 2 Table of Contents Subsidiaries and associated companies: For a list of our significant subsidiaries, please see Item 4.C. “Shares owned directly by the Parent Company.” We are engaged in a number of minor joint ventures and cooperative arrangements.
Parent Company operations: The business of the Parent Company, Telefonaktiebolaget LM Ericsson, consists mainly of corporate management, holding company functions internal banking activities and customer credit management. Subsidiaries and associated companies: For a list of our significant subsidiaries, please see “Shares owned directly by the Parent Company” in Item 4.C. below.
The Company’s portfolio spans the following segments: Networks, Cloud Software and Services and Enterprise (which includes Global Communications Platform, Wireless Wide-Area Networks and private cellular networks). In addition, segment Other includes media businesses as well as other non-allocated business. Ericsson delivers high-performing, programmable and energy-efficient networks that enable greater service differentiation.
In addition, segment Other consists of media businesses and other non-allocated businesses. Ericsson delivers high-performing, programmable and energy-efficient networks that enable greater service differentiation.
Japan 100 4 Table of Contents D. Property, Plants and Equipment Primary manufacturing and assembly facilities We continuously adjust our production capacity to meet expected customer demand. During 2024, our overall capacity utilization* was 42%. The table below summarizes where we have major sites and the total floor space at year-end. All facilities are leased, other than Nanjing (China).
The table below summarizes where we have major sites and the total floor space at year-end. All facilities are leased, other than Nanjing (China).
Hungary 100 1,301 120 L M Ericsson Limited Ireland 100 4 34 Ericsson Telecomunicazioni S.p.A. Italy 100 44 2,429 Ericsson Holding International B.V. The Netherlands 100 222 2,983 Ericsson A/S Norway 100 75 257 Ericsson Sp. z o.o. Poland 100 4 412 Ericsson España S.A.U Spain 100 28 14 Ericsson Ltd.
Netherlands 100 222 2,983 Ericsson A/S Norway 100 75 257 Ericsson Sp. z o.o. Poland 100 4 412 Ericsson Telecomunicacoes LDA. Portugal 100 1 23 Ericsson Antenna Technology Romania S.R.L. Romania 100 98 206 Ericsson Telecommunications Romania S.R.L. Romania 100 49 103 Ericsson España S.A.U Spain 100 28 14 Ericsson Ltd.
In some instances, Ericsson has previously had to arrange performance bonds or similar financial guarantees to secure Ericsson’s performance of obligations under the commercial agreements Ericsson had entered into relating to the business in Iran. In such instances, Ericsson usually engaged its banks outside Iran, who in turn engaged local banks in the country.
However, in 2025, Ericsson has estimated that its gross revenue and net profits attributable to Iran were negligible. 3 Table of Contents Before 2018, Ericsson had arranged performance bonds or similar financial guarantees to secure Ericsson’s performance of obligations under the commercial agreements Ericsson had entered into relating to the business in Iran.
These local banks include Tejarat Bank, Melli Bank, Parsian Bank and Saderat Bank. Although some bonds and guarantees are still in place, no new performance bonds or similar guarantees involving these banks with respect to Ericsson’s business activities in Iran were issued during 2024.
In such instances, Ericsson usually engaged its banks outside Iran, who in turn engaged local banks in the country. These local banks include Tejarat Bank, Melli Bank, Parsian Bank and Saderat Bank. Although some bonds and guarantees are still in place, the performance bonds have been frozen by the EU banks.
Removed
The same year, Lars Magnus Ericsson opened a small workshop in Stockholm to repair telegraph instruments and sell his own telephone equipment. Today, Ericsson is a leading provider of mobile connectivity solutions to communications service providers, enterprises and the public sector.
Added
We are engaged in a number of minor joint ventures and cooperative arrangements. For more information regarding risks associated with joint ventures, strategic alliances and third-party agreements, please see “Item 3.D.
Removed
Ericsson’s enterprise solutions provide superior connectivity to businesses and advanced network capabilities to application developers.
Added
Shortly thereafter, the Company began manufacturing its first telephones. Ericsson is a leading provider of mobile connectivity solutions to communications service providers, enterprises and the public sector. The Company’s portfolio spans the following segments: Networks, Cloud Software and Services and Enterprise (which includes Global Communications Platform, Wireless Wide Area Networks and private 5G networks).
Removed
However, Ericsson has estimated that its operating loss (income/loss before taxes and financial net) from Iran operations was, after internal cost allocation and impairments, SEK -35 million during 2024.
Added
Business Overview The information set forth under the following headings of the 2025 Swedish Annual Report (adjusted version) is incorporated herein by reference: • Financial Report • This is Ericsson • Strategy • Leading mobile networks to drive an AI-powered world • Leadership in mobile networks • Scaling the mobile platform • Strategic foundation • 150 years of connectivity • Board of Directors’ Report • Financial highlights – Research and Development (R&D) expenses • Financial highlights – Seasonality • Business results – Segments • Business results – Market areas Ericsson’s value chain spans the extraction and processing of raw materials used in electronic components to the delivery of communication services for end users.
Removed
In 2018, Ericsson began reducing its business engagement as well as its presence in Iran significantly but continued to provide certain critical services and support to telecommunications networks and systems.
Added
It comprises five main stages: global electronics manufacturing, direct suppliers, own operations, direct customers, and consumers and end users. As is typical for large multinational companies, Ericsson’s value chain is complex and interconnected, which creates challenges for visibility and traceability beyond the first tier of suppliers and customers.
Removed
As of December 2024, Ericsson has wound down its active business activities in Iran and anticipates that future activities will be limited to settlement of unfulfilled obligations, as well as administrative activities to close down the legal entity. 3 Table of Contents C.
Added
In 2025, the Company had approximately 15,000 active direct suppliers, of which approximately 200 provided materials and components used in Ericsson’s hardware. The global electronics manufacturing value chain begins with the extraction of natural resources used in electronic hardware. These materials are refined, traded and manufactured into parts and components that are assembled into finished products.
Removed
Croatia 49 65 330 Total 628 1) Through subsidiary holdings, total holdings amount to 100% of Compañía Ericsson S.A.C.I. 2) Through subsidiary holdings, total holdings amount to 74% of Ericsson (Thailand) Ltd. Shares owned by subsidiary companies Company Reg. No. Domicile Percentage of ownership Subsidiary companies Ericsson Telekommunikation GmbH Germany 100 Ericsson GmbH Germany 100 Ericsson Telecommunicatie B.V.
Added
Ericsson’s regional supply hubs consolidate material from component suppliers and distribute it to production sites.
Removed
The Netherlands 100 Ericsson Inc. United States 100 Vonage Holdings Corp. United States 100 Ericsson Enterprise Solutions Inc. United States 100 Iconectiv, LLC United States 83 Ericsson Telecomunicações LTDA Brazil 100 Ericsson Australia Pty. Ltd. Australia 100 Ericsson (China) Communications Co. Ltd. China 100 Nanjing Ericsson Panda Communication Co. Ltd. China 51 Ericsson Japan K.K.
Added
Belgium 100 5 119 Ericsson Danmark A/S Denmark 100 90 216 Oy LM Ericsson Ab Finland 100 13 196 Ericsson France SAS France 100 21 524 Ericsson Germany GmbH Germany 100 1 1,816 Ericsson Hungary Ltd. Hungary 100 1,301 120 Ericsson Telecomunicazioni S.p.A. Italy 100 44 2,429 Ericsson Holding International B.V.
Removed
In July 2023, the Company announced plans to build a next-generation smart manufacturing and technology hub in Tallinn, Estonia. Ericsson is redirecting its investment in Europe and will no longer proceed with building the previously announced new facility in Tallinn, Estonia. Instead, Ericsson will focus on modernizing its existing sites.
Added
Shares owned by subsidiary companies Company Reg. No. Domicile Percentage of ownership Subsidiary companies Ericsson Facilities GmbH Germany 100 Ericsson GmbH Germany 100 Ericsson Telecommunicatie B.V. Netherlands 100 Red Bee Media Limited United Kingdom 100 Ericsson Inc. United States 100 Vonage Holdings Corp. United States 100 Ericsson Enterprise Wireless Solutions Inc. United States 100 Ericsson Telecomunicações LTDA.
Added
Brazil 100 Ericsson Australia Pty. Ltd. Australia 100 Ericsson (China) Communications Co. Ltd. China 100 Nanjing Ericsson Panda Communication Co. Ltd. China 100 Ericsson Japan K.K. Japan 100 4 Table of Contents D. Property, Plants and Equipment Primary manufacturing and assembly facilities We continuously adjust our production capacity to meet expected customer demand.
Added
We consider the production capacity of our manufacturing network to be sufficient to meet the requirements of our business. The extent of utilization of our manufacturing facilities varies from plant to plant and from time to time during the year. None of these facilities is subject to a material encumbrance.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

7 edited+0 added−0 removed4 unchanged
Biggest changeTrend Information The information set forth under the following headings of the 2024 Swedish Annual Report (adjusted version) is incorporated herein by reference: • Financial Report • CEO Comment • Mobile networks – the next wave • Leadership in mobile networks • Expansion into enterprise • Leading with integrity • Market developments and business performance • Looking ahead • Board of Directors’ Report • Business in 2024 • Financial highlights – Seasonality • Business results – Segments • Business results – Market areas E.
Biggest changeTrend Information The information set forth under the following headings of the 2025 Swedish Annual Report (adjusted version) is incorporated herein by reference: • Financial Report • CEO Comment – Positioned for growth • Board of Directors’ Report • Financial highlights – Seasonality • Business results – Segments • Business results – Market areas E.
ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS Year-to-year comparisons between 2023 and 2022 have been omitted from this 2024 Form 20-F but may be found in “Item 5. Operating and Financial Review and Prospects” in our Annual Report on Form 20-F for the fiscal year ended December 31, 2023. A.
ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS Year-to-year comparisons between 2024 and 2023 have been omitted from this 2025 Form 20-F but may be found in “Item 5. Operating and Financial Review and Prospects” in our Annual Report on Form 20-F for the fiscal year ended December 31, 2024. A.
Liquidity and Capital Resources The information set forth under the following headings of the 2024 Swedish Annual Report (adjusted version) is incorporated herein by reference: • Financial Report • Board of Directors’ Report • Financial highlights – Cash flow • Financial highlights – Financial position • Financial highlights – Seasonality • Financial highlights – Capital expenditures • Notes to the consolidated financial statements 5 Table of Contents • Note B9 – Other current liabilities • Note D1 – Provisions • Note D2 – Contingent liabilities • Note D4 – Contractual obligations • Note F1 – Financial risk management • Note F4 – Interest-bearing liabilities • Note H3 – Statement of cash flows C.
Liquidity and Capital Resources The information set forth under the following headings of the 2025 Swedish Annual Report (adjusted version) is incorporated herein by reference: • Financial Report • Board of Directors’ Report • Financial highlights – Cash flow 5 Table of Contents • Financial highlights – Financial position • Financial highlights – Seasonality • Financial highlights – Capital expenditure • Notes to the consolidated financial statements • Note B9 – Other current liabilities • Note D1 – Provisions • Note D2 – Contingent liabilities • Note D4 – Contractual obligations • Note F1 – Financial risk management • Note F4 – Interest-bearing liabilities • Note H3 – Statement of cash flows • Shareholder information • Capital allocation C.
Our patent portfolio comprises more than 60,000 granted patents, which are licensed globally on fair, reasonable and nondiscriminatory terms to the users of our technology. With high-performing programmable networks, enabled by openness and cloud, Ericsson collaborates with our partners and customers to drive the future of connectivity, enabling programmability and delivering unparalleled user experiences.
Our patent portfolio comprises more than 60,000 granted patents, which are licensed globally on fair, reasonable and nondiscriminatory terms to the users of our technology. With high-performing programmable networks, enabled by open ecosystems, development tools, interfaces and technologies and cloud, Ericsson collaborates with our partners and customers to drive the future of connectivity, enabling programmability and delivering unparalleled user experiences.
Operating Results The information set forth under the following headings of the 2024 Swedish Annual Report (adjusted version) is incorporated herein by reference: • Financial Report • This is Ericsson • Strategy • Board of Directors’ Report • Business in 2024 • Financial highlights • Business results – Segments • Business results – Market areas • Risk management • Notes to the consolidated financial statements • Note A1 – Material accounting policies • Note F1 – Financial risk management • Risk Factors • Alternative performance measures • Corporate Governance Report • Regulation B.
Operating Results The information set forth under the following headings of the 2025 Swedish Annual Report (adjusted version) is incorporated herein by reference: • Financial Report • This is Ericsson • Strategy • Leading mobile networks to drive an AI-powered world • Leadership in mobile networks • Scaling the mobile platform • Strategic foundation • Board of Directors’ Report • Financial highlights • Business results – Segments • Business results – Market areas • Corporate Governance – Risk management • Notes to the consolidated financial statements • Note A1 – Material accounting policies • Note F1 – Financial risk management • Risk Factors • Alternative performance measures • Corporate Governance Report • Regulation B.
The information set forth under the following headings of the 2024 Swedish Annual Report (adjusted version) is incorporated herein by reference: • Financial Report • Strategy • Risk factors – Risks related to business activities and industry • Board of Directors’ Report • Financial highlights – Research and development, patents and licensing Ericsson has a policy of strong commitment to research and development (“R&D”) with substantial contributions to cutting-edge open standards and technologies, leading the development of cellular technology – from 2G to 5G and beyond.
The information set forth under the following headings of the 2025 Swedish Annual Report (adjusted version) is incorporated herein by reference: • Financial Report • Strategy • Leading mobile networks to drive an AI-powered world • Leadership in mobile networks • Scaling the mobile platform • Strategic foundation • Risk factors – Risks related to business activities and industry • Board of Directors’ Report • Financial highlights – Research and Development (R&D) expenses Ericsson has a policy of strong commitment to research and development (“R&D”) with substantial contributions to cutting-edge open standards and technologies, leading the development of cellular technology – from 2G to 5G and beyond.
Research and Development and Patent Information 2024 2023 2022 R&D employees 26,744 28,219 29,304 R&D expenses SEK bn 53.5 50.7 47.3 Patents over 60,000 over 60,000 over 60,000 D.
Research and Development and Patent Information 2025 2024 2023 R&D expenses SEK bn 48.9 53.5 50.7 Patents over 60,000 over 60,000 over 60,000 D.

Item 6. [Reserved]

Selected Financial Data — reserved (removed by SEC in 2021)

6 edited+0 added−1 removed2 unchanged
Biggest changeNumber of employees by market area at year-end 2024 2023 2022 South East Asia, Oceania and India 26,389 27,016 27,761 North East Asia 10,426 12,331 13,207 North America 9,935 10,744 11,993 Europe and Latin America 1) 43,353 45,380 48,023 Middle East and Africa 4,133 4,481 4,545 Total 94,326 99,952 105,529 1) of which in Sweden 13,420 13,977 14,481 E.
Biggest changeNumber of employees by market area at year-end 2025 2024 2) 2023 2) Americas 15,050 16,034 17,285 Europe, Middle East and Africa 1) 39,045 41,387 43,320 South East Asia, Oceania and India 25,189 26,389 27,016 North East Asia 9,542 10,426 12,331 Total 88,826 94,326 99,952 1) of which in Sweden 12,806 13,420 13,977 2) 2024 and 2023 have been restated to reflect the changes in the market area structure implemented in 2025, see note B1 “Segment Information” of the 2025 Swedish Annual Report (adjusted version) for more information.
Board Practices The information set forth under the following headings of the 2024 Swedish Annual Report (adjusted version) is incorporated herein by reference: • Financial Report • Notes to the consolidated financial statements • Note G2 – Information regarding members of the Board of Directors and Group management – Comments to the table • Corporate Governance Report • Board of Directors – Composition of the Board of Directors • Committees of the Board of Directors – Audit and Compliance Committee • Committees of the Board of Directors – Remuneration Committee D.
Board Practices The information set forth under the following headings of the 2025 Swedish Annual Report (adjusted version) is incorporated herein by reference: • Financial Report • Notes to the consolidated financial statements • Note G2 – Information regarding members of the Board of Directors and Group management – Comments to the table • Corporate Governance Report • Board of Directors – Composition of the Board of Directors • Committees of the Board of Directors – Audit and Compliance Committee • Committees of the Board of Directors – Remuneration Committee D.
Employees The information set forth under the following headings of the 2024 Swedish Annual Report (adjusted version) is incorporated herein by reference: • Financial Report • Board of Directors’ Report • Financial highlights – Employees • Notes to the Consolidated financial statements • Note G4 – Employee Information We believe that we have a good relationship with the labor unions that represent our employees.
Employees The information set forth under the following headings of the 2025 Swedish Annual Report (adjusted version) is incorporated herein by reference: • Financial Report • Board of Directors’ Report • Financial highlights – Employees • Notes to the Consolidated financial statements • Note G4 – Employee information We believe that we have a good relationship with the labor unions that represent our employees.
Share Ownership The information set forth under the following headings of the 2024 Swedish Annual Report (adjusted version) is incorporated herein by reference: • Financial Report • The Ericsson share — Shareholders • Notes to the consolidated financial statements • Note G2 – Information regarding members of the Board of Directors and Group management • Corporate Governance Report • Members of the Board of Directors • Members of the Executive Team • Remuneration Report • Remuneration Report 2024 F.
Share Ownership The information set forth under the following headings of the 2025 Swedish Annual Report (adjusted version) is incorporated herein by reference: • Financial Report • The Ericsson share – Shareholders • Notes to the consolidated financial statements • Note G2 – Information regarding members of the Board of Directors and Group management • Corporate Governance Report • Members of the Board of Directors • Members of the Executive Team as of December 31, 2025 • Remuneration Report • Remuneration Report 2025 F.
Compensation The information set forth under the following headings of the 2024 Swedish Annual Report (adjusted version) is incorporated herein by reference: • Financial Report • Board of Directors’ Report • Corporate governance – Remuneration • Guidelines for remuneration to Group management • Notes to the consolidated financial statements • Note G1 – Post-employment benefits • Note G2 – Information regarding members of the Board of Directors and Group management • Note G3 – Share-based compensation • Corporate Governance Report • Remuneration to Board members • Remuneration Report • Remuneration Report 2024 C.
Compensation The information set forth under the following headings of the 2025 Swedish Annual Report (adjusted version) is incorporated herein by reference: • Financial Report • Board of Directors’ Report • Guidelines for remuneration to Group management approved by the Annual General Meeting of shareholders 2023 • Notes to the consolidated financial statements • Note G1 – Post-employment benefits • Note G2 – Information regarding members of the Board of Directors and Group management • Note G3 – Share-based compensation • Corporate Governance Report • Remuneration to Board members • Remuneration Report • Remuneration Report 2025 C.
Directors and Senior Management The information set forth under the following headings of the 2024 Swedish Annual Report (adjusted version) is incorporated herein by reference: • Corporate Governance Report • Members of the Board of Directors • Members of the Executive Team On January 23, 2024, Ericsson announced the appointment of Lars Sandström as its new Chief Financial Officer, Senior Vice President and Head of Group Function Finance, effective April 1, 2024.
Directors and Senior Management The information set forth under the following headings of the 2025 Swedish Annual Report (adjusted version) is incorporated herein by reference: • Corporate Governance Report • Members of the Board of Directors • Members of the Executive Team as of December 31, 2025 • Financial Report • Notes to the consolidated financial statements • Note G3 – Share-based compensation 6 Table of Contents B.
Removed
Mr. Sandström replaced Carl Mellander, whose departure Ericsson announced in April 2023. • Financial Report • Notes to the consolidated financial statements • Note G3 – Share-based compensation 6 Table of Contents See Item 8.B. “Financial Information – Significant Changes” herein. B.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

2 edited+0 added−0 removed0 unchanged
Biggest changeITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS A. Major Shareholders The information set forth under the following headings of the 2024 Swedish Annual Report (adjusted version) is incorporated herein by reference: • Financial Report 7 Table of Contents • The Ericsson Share — Shareholders • Corporate Governance Report • Governance structure and core values — Ownership structure B.
Biggest changeITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS A. Major Shareholders The information set forth under the following headings of the 2025 Swedish Annual Report (adjusted version) is incorporated herein by reference: • Financial Report 7 Table of Contents • The Ericsson Share – Shareholders • Corporate Governance Report • Governance structure – Ownership structure B.
Related Party Transactions The information set forth under the following heading of the 2024 Swedish Annual Report (adjusted version) is incorporated herein by reference. • Financial Report • Notes to the consolidated financial statements • Note H4 – Related party transactions • Note G2 – Information regarding members of the Board of Directors and Group management C.
Related Party Transactions The information set forth under the following heading of the 2025 Swedish Annual Report (adjusted version) is incorporated herein by reference. • Financial Report • Notes to the consolidated financial statements • Note H4 – Related party transactions • Note G2 – Information regarding members of the Board of Directors and Group management C.