The world’s first truly global company

1. The world’s first truly global company Thomas Westling

2. Extracts From Our Annual Report • The year was characterized by an international recession, with major changes and reduced capital expenditures in most of our principal markets • Investments in public telecommunications, in particular, continue to be weak in Ericsson’s main markets. Customers are deferring their orders and competitive pressure continues to increase. • An upturn may possibly occur towards the end of the year but I estimate that the level of profits for the full year will continue to be low • The action program we have initiated has been expanded but the full effect will not be felt before the end of the current year. This program includes comprehensive reductions in personnel which have already begun • The recession proved to be more persistent than expected. Investments in new projects declined or were deferred while follow-on orders and contracts to expand installations were postponed

3. Extracts From Our Annual Report • The year was characterized by an international recession, with major changes and reduced capital expenditures in most of our principal markets • Investments in public telecommunications, in particular, continue to be weak in Ericsson’s main markets. Customers are deferring their orders and competitive pressure continues to increase. • An upturn may possibly occur towards the end of the year but I estimate that the level of profits for the full year will continue to be low • The action program we have initiated has been expanded but the full effect will not be felt before the end of the current year. This program includes comprehensive reductions in personnel which have already begun • The recession proved to be more persistent than expected. Investments in new projects declined or were deferred while follow-on orders and contracts to expand installations were postponed 1991

4. What is a Global Company • No dominating homemarket • Significant presence on all continents. • All employees are given the same career opportunities

5. Ericsson – a truly global company • Presence in 140 countries • International operations for more than 120 years • R&D centers worldwide • Strongest brand in mobile infrastructure • Listed on 8 stock exchanges • Net sales 2000: SEK 273.6 b.

6. Sales Distributed per Region

7. Number of employees

8. Shareholding

9. Swedish Dominance • 15-17% of exports • 3-4% of GNP • >10% of Swedish growth some years • 24% of the Swedish stock exchange • Ericsson, ABB and Elextrolux have the capacity to employ all engineering graduates in Sweden (3600 in 2000/01) • Ericsson is the dominant ”supplier” of CEOs to the Swedish industry

10. Reasons to become even more global • Global customers • Access to global competence • Business is local • Expats are expensive

11. Focused areas to improve the global company • Organization • Focus on regions

12. Focused areas to improve the global company • Organization • Corporate Culture • A networking company • Technology driven • Significant room for individual initiatives • A culture of empowerment

13. Focused areas to improve the global company • Organization • Corporate Culture • Resource and Competence Management • Recruitment • Remuneration • Expat strategy • Competence development

14. Assessment Centers • Are carried out all over the world but with Oxford, UK as the most common place • Participants always represent a cross section of our geographical presence • 5 days

15. Management programs • Ericsson Top Executive • Global Perspective • Ericsson Executive • New Realities

16. Management programs • Ericsson Top Executive • Leadership Core Curriculum • Global • Mandatory

17. Management programs • Ericsson Top Executive • Leadership Core Curriculum • Excellerate • Global trainee program • Requirements comprise of two Masters degrees, having lived in at least two countries and fluent in three languages • 1-4 years work experience • Takes 2 years with three assignments of which one is with a customer and one in a foreign country • Includes 7 two week get together sessions in different parts of the world

18. Management programs • Ericsson Top Executive • LCC • Excellerate • Ericsson General Management Programs • Cooperation with universities such as Thunderbird, Babson College, UC Berkeley, Cranfield etc • Open enrollment programs

19. A US Perspective • Our new US president is a US citizen • Difficulties handling US remuneration levels outside the US • Americans are reluctant to move from the US • Global customers are forcing our US employees to travel • Many expats in our US company • American values and ways of doing things often conflict with non-US values

20. To what extent can a company be truly global?