Companies news of 2018-04-20 (page 1)

 
The Acting CEO Mattias Carlsson is Appointed as the CEO for TF Bank

STOCKHOLM, April 20, 2018 /PRNewswire/ -- The board of directors at TF Bank has appointed Mattias Carlsson as a new CEO for TF Bank. Mattias Carlsson, has been working at TF Bank for almost 10 years, under which he took the post of CEO and the Chairman of the Board of Directors and has become since November 2017 the acting CEO of the bank.

? Mattias Carlsson has been an important member of the working team of TF bank throughout his years of service at TF Bank. We at the Board of Directors are convinced that Mattias Carlsson is the right person for this post to lead the daily operational activities for our growth journey, says the acting Chairman of the Board of Directors of TF Bank Bertil Larsson.

Mattias Carlsson has long experience in banking activities where he among other different posts worked at SEB before he became the CEO for TF Bank in year 2009. Mattias Carlsson was the CEO of the bank until year 2015 and then became the Chairman of the Board of Directors when TF Bank initiated the preparation process for listing on Nasdaq Stockholm in June 2016. Mattias has a broad experience in strategic planning, business development on product and customer level.

? I am looking forward to continue managing the operational activities ? along with the competent staff of the bank ? at this exceptional phase of growth the bank is currently going through. We will continue strengthening our market positioning in northern Europe through expanding and diversifying our two segments of business aiming to increase the value for our shareholders, says TF bank's newly appointed CEO Mattias Carlsson.

An interview with Mattias Carlsson is attached to this press release.

For more information you may contact:

Bertil Larsson
Acting Chairman of the Board
+46(0)70-573-13-00

Mikael Meomuttel
CFO and Head of Investor Relations
+46(0)70-626-95-33

About TF Bank

TF Bank is an internet-based niche bank offering consumer banking services through its proprietary IT-platform with a high degree of automation. The company's IT platform is designed for scalability and adaptation to different products, countries, currencies and digital banking solutions. TF Bank carries out deposit and lending activities with consumers in Sweden, Finland, Norway, Denmark, Poland, Germany, Estonia and Latvia through subsidiary, branch or cross-border banking. The business is divided into two segments: Consumer Lending and Ecommerce Solutions.

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Ericsson Reports First Quarter Results 2018

STOCKHOLM, April 20, 2018 /PRNewswire/ -- First quarter highlights (In 2017, certain items affecting comparability had a significant negative impact on the results.) 

  • Reported sales decreased by -9% YoY. Sales, adjusted for currency, decreased by -2% YoY with lower revenues in market areas North East Asia as well as in South East Asia, Oceania and India. The other market areas showed growth.
  • Gross margin was 34.2% (15.7%) 1). Gross margin excluding restructuring charges improved YoY, to 35.9% (18.7%) 1), supported by cost reductions and the continued ramp-up of Ericsson Radio System (ERS).
  • Operating income (loss) was SEK -0.3 (-11.3) b. Operating income (loss) excluding restructuring charges was SEK 0.9 (-9.5) b.
  • Networks operating margin excluding restructuring charges was 13.5% (12.8%) 1) with strong gross margin and increased investments in R&D.
  • Digital Services gross margin excluding restructuring charges improved YoY, to 41.4% (-25.5%) 1), driven by improved services margins as a result of cost reductions. Operating income (loss) excluding restructuring charges was SEK -2.0 (-8.8) b.
  • Managed Services operating margin excluding restructuring charges was 1.9% (-28.7%) 1) as a result of cost reductions and customer contract reviews.
  • Cash flow from operating activities was SEK 1.6 (-1.5) b. and free cash flow was SEK 0.3 (-3.2) b. Net cash increased YoY to SEK 35.6 (28.3) b.

1) Write-down of assets as well as provisions and adjustments related to certain customer projects had a significant negative impact on the 2017 results. In addition, a restate of 2016 and 2017 numbers has been made following IFRS 15 introduction.

 


SEK b.

Q1
2018

Q1
2017

YoY
change

Q4
2017

 QoQ
change

Net sales

43.4

47.8

-9%

57.9

 

-25%

Sales growth adj. for comparable units and currency

-

-

-2%

-

 

-24%

Gross margin

34.2%

15.7%

-

21.6%

 

-

Operating income (loss)

-0.3

-11.3

-

-19.3

 

-

Operating margin

-0.7%

-23.6%

-

-33.3%

 

-

Net income (loss)

-0.7

-10.0

-

-18.5

 

-

EPS diluted, SEK

-0.25

-3.08

-

-5.63

 

-

EPS (non-IFRS), SEK 1)

0.11

-2.19

-

-1.09

 

-

Cash flow from operating activities

1.6

-1.5

-

11.2

 

-86%

Free cash flow 2)

0.3

-3.2

-

10.1

 

-97%

Net cash, end of period

35.6

28.3

26%

34.7

 

3%

Gross margin excluding restructuring charges

35.9%

18.7%

-

25.1%

 

-

Operating income (loss) excluding restructuring charges

0.9

-9.5

-

-16.9

 

-

Operating margin excluding restructuring charges

2.0%

-19.9%

-

-29.1%

-

 

1) EPS diluted, excl. amortizations and write-downs of acquired intangible assets, and excluding restructuring charges. When a company reports a loss, the number of shares used for calculating earnings diluted per share shall be the same as for basic calculation.
2) Free cash flow: Cash flow from operating activities less net capital expenditures and other investments, see APMs at the end of the report.

Non-IFRS financial measures are reconciled to the most directly reconcilable line items in the financial statements at the end of this report.

Comments from Börje Ekholm, President and CEO of Ericsson (NASDAQ: ERIC)

We have continued to execute on our focused business strategy creating solutions that help our customers improve their business. Our efforts to improve efficiency in service delivery and common costs are starting to pay off. The gross margin1) improved to 36% (19%) in the quarter, tracking well towards our Group target of 37-39% by 2020.

A cornerstone in our strategy is to invest in R&D for both technology leadership and cost leadership, which will allow us to generate higher gross margins. We continue to increase our R&D investments in Networks to lead in 5G. In Digital Services we continue to increase investments into our new cloud-native portfolio as well as changing our ways of working for better R&D efficiency. In Managed Services we continue to focus on machine intelligence, automation and analytics to further enhance user experience, improve efficiency and better manage the increasingly complex networks of tomorrow.

In Networks we have seen the portfolio becoming more competitive in the last three quarters of 2017, resulting in market share gains, as reported by external sources. In Networks the gross margin1) improved to 40% (35%). In Digital Services, the gross margin 1) improved to 41% (-25%), supported by cost reductions mainly in service delivery. However, operating income in Digital Services remains challenging. In Managed Services the gross margin1) improved to 9% (-7%) supported by efficiency gains in service delivery and customer contract reviews, resulting in a positive operating income1).

In segment Emerging Business and Other, we are gradually increasing investments in growth areas such as IoT and Unified Delivery Network (UDN). While the combined operating income of Media Solutions and Red Bee Media improved YoY, these businesses showed a loss2) of SEK -0.5 b. in the quarter. We expect to close the announced Media Solutions divestment by the end of the third quarter.

In the quarter we reduced the total workforce by more than 3,000. Since the reduction activities were launched in July last year, we have reduced the total workforce by almost 18,000. To date, the annual run-rate effect of cost savings is approximately SEK 8.5 b., compared with the target of SEK 10 b. for mid-2018. The run-rate reduction does not yet fully impact the quarterly results.

Free cash flow improved to SEK 0.3 (-3.2) b. ? another step forward in improving our financial resilience. Net cash was SEK 35.6 (28.3)b.

The improvements in the quarter are encouraging. However, more work remains to be done. We have confidence in the strategic direction laid out and remain fully committed to our long-term targets.

Looking ahead, we expect the rapidly increasing focus on 5G to continue, with initial business discussions focusing on enhanced mobile broadband. We continue to work closely with customers to define the optimal business models to enable them to tap into new revenue streams and capture the full value of 5G.

1) Excluding restructuring charges
2) Excluding restructuring charges and corporate allocations

Planning assumptions going forward

Market related                                                          

  • The Radio Access Network (RAN) equipment market is estimated to decline by -2% for full-year 2018 with 2% CAGR (2018-2022). In 2018, the Chinese market is expected to decline due to reduced LTE investments, while there is positive momentum in North America.

Currency exposure              

  • Rule of thumb: A weakening by 10% of USD to SEK would have a negative impact of approximately -5% on net sales and approximately -1 percentage point on operating margin (based on 2017 full-year currency exposure). For historical rates, see www.ericsson.com/en/investors

Ericsson related

  • 5-year average sales seasonality between Q1 and Q2 is +9%
  • Focusing the business and addressing low-performing operations are expected to reduce full-year sales by up to SEK 10 b. in 2019 compared with 2016.
  • The current revenue baseline of the IPR licensing contract portfolio is approximately SEK 7 b. on an annual basis.
  • The plan is to implement cost savings with an annual run-rate effect of at least SEK 10 b. by mid-2018, compared with the Q2 2017 annual run rate.
  • Operating expenses typically vary between quarters due to seasonality.
  • Restructuring charges for full-year 2018 are estimated to be SEK 5-7 b and slightly higher in Q2 vs Q1.
  • Actual and estimated net impact from amortization and capitalization of development expenses and from recognition and deferral of hardware costs: 

 

SEK b. 

Q1 2018
Actual 

Q2 2018
Estimate 

Q2 2017
Actual 

FY 2017
Actual 

FY 2018
Estimate 

FY 2019
Estimate 

Cost of sales

-0.3

-0.2

-0.4

-2.6

-1


R&D expenses

-0.4

-0.4

0.1

-0.3

-2


Total impact

-0.7

-0.6

-0.3

-2.9

-3

-1 to -2

 

  • The divestment of Media Solutions is expected to be closed by the end of Q3 2018. Results will be reported as share of earnings according to the equity method. Ericsson's holding will be 49% of the shares. Media Solutions sales were SEK 3.2 b. in 2017.
  • Consequences of Q1 and Q2 changes in product responsibilities between segments are described in detail in Financial highlights, page 4 in the complete report.

NOTES TO EDITORS

You find the complete report with tables in the attached PDF or by following this link https://www.ericsson.com/assets/local/investors/documents/financial-reports-and-filings/interim-reports-archive/2018/3month18-en.pdf or on www.ericsson.com/investors

The company will hold two identical conference calls for journalists, financial analysts and investors. President and CEO Börje Ekholm and CFO Carl Mellander will comment on the report and take questions.

The first conference call will begin at 09:00 CEST (08:00 BST in London, 03:00 EDT in New York and 16:00 JST in Tokyo), and the second at 14:00 CEST (13:00 BST in London, 08:00 EDT in New York and 21:00 JST in Tokyo).

To join the conference call, please phone one of the following numbers:

Sweden: +46(0)8-5664-2651 (Toll-free Sweden: 0200-883685)

International/UK: +44-3333-000-804 (Toll-free UK: 0800-358-9473)

US: +1-631-913-1422 (Toll-free US: +1-8558-570-686)

PIN code: For 09:00 CEST call, 55234216# and for 14:00 CEST call, 61966022#

Please call in at least 15 minutes before the conference calls begin. As there are usually a large number of callers, it may take some time before you are connected.

A live audio webcast of the conference call will be available at www.ericsson.com/investors and www.ericsson.com/press

Replay:

Replay of the conference calls will be available from about one hour after each has ended until April 27, 2018.

Sweden replay number: +46(0)8-519-993-85

International replay number: +44(0)333-300-0819

For 09:00 CEST call, 301225218# and for 14:00 CEST call, 301225221#

For Further Information, Please Contact

Contact person

Peter Nyquist, Head of Investor Relations
Phone: +46-10-714-64-99
E-mail: peter.nyquist@ericsson.com 

Additional contacts

Helena Norrman, Senior Vice President, Marketing and Communications
Phone: +46-10-719-34-72
E-mail: media.relations@ericsson.com

Investors

Åsa Konnbjer, Director, Investor Relations
Phone: +46-10-713-39-28
E-mail: asa.konnbjer@ericsson.com

Stefan Jelvin, Director, Investor Relations
Phone: +46-10-714-20-39
E-mail: stefan.jelvin@ericsson.com 

Rikard Tunedal, Director, Investor Relations
Phone: +46-10-714-54-00
E-mail: rikard.tunedal@ericsson.com

Media

Ola Rembe, Vice President, Head of External Communications
Phone: +46-10-719-97-27
E-mail: media.relations@ericsson.com 

Corporate Communications
Phone: +46-10-719-69-92
E-mail: media.relations@ericsson.com

This information is information that Telefonaktiebolaget LM Ericsson is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 07:30 CEST on April 20, 2018.

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http://news.cision.com/ericsson/r/ericsson-reports-first-quarter-results-2018,c2500669

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Ericsson reports first quarter results 2018


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