Mission Statement, Vision, & Core Values of Telefonaktiebolaget LM Ericsson (publ) (ERIC)

What drives a global leader in communication technology like Telefonaktiebolaget LM Ericsson (publ) (ERIC)? Is it just about profits, or is there something more? The company's mission, vision, and core values offer a glimpse into its soul, guiding its strategies and shaping its impact on the world. But how do these statements translate into tangible results, especially when the company's latest financials show a complex picture of growth and challenges?

Consider that in 2024, Ericsson reported net sales of SEK 247.9 billion, a 5% organic sales decline, although adjusted gross margin increased to 44.9% from 39.6% in 2023. With such dynamics at play, how do the company's guiding principles steer its decisions and maintain its course? Read on to explore the mission, vision, and core values that underpin Ericsson's operations and strategic direction, and discover how they contribute to the company's broader goals in an ever-evolving digital landscape.

Telefonaktiebolaget LM Ericsson (publ) (ERIC) An Overview

Telefonaktiebolaget LM Ericsson (publ), commonly known as Ericsson, has a long history in the telecommunications sector, providing a range of products and services. From its early days in telegraph equipment to its current focus on 5G technology, Ericsson has evolved alongside the communication industry. As of April 2025, Ericsson continues to be a key player in providing network infrastructure, software, and services to telecommunications operators.

Ericsson's offerings include:

• Network Infrastructure: Providing hardware and software for mobile broadband, fixed wireless access, and other network solutions.
• Cloud and Software Services: Offering cloud-based solutions, network management software, and other software applications.
• Managed Services: Providing network operations, maintenance, and optimization services to telecom operators.
• Emerging Business: Exploring new business opportunities in areas like IoT, automation, and enterprise solutions.

In 2024, Ericsson reported strong financial results, driven by the demand for 5G technology and network upgrades. The company's revenue reached record levels, with significant growth in North America and Europe. Ericsson has also focused on improving its profitability through cost-efficiency measures and strategic investments in research and development. For example, in Q4 2024, Ericsson reported a 12% increase in sales, driven primarily by growth in its network business. This growth reflects the ongoing deployment of 5G networks worldwide and Ericsson's strong position in this market.

Ericsson's financial performance in 2024 also benefited from its strategic focus on key growth areas. The company has invested heavily in research and development to maintain its technology leadership in 5G and other emerging technologies. These investments have enabled Ericsson to secure major contracts with leading telecom operators, driving revenue growth and market share gains. Additionally, Ericsson has implemented cost-efficiency measures to improve its profitability and strengthen its financial position.

Ericsson stands as a leader in the telecommunications industry, driving innovation and shaping the future of connectivity. To delve deeper into Ericsson's investor profile, including who is investing and their motivations, check out: Exploring Telefonaktiebolaget LM Ericsson (publ) (ERIC) Investor Profile: Who’s Buying and Why?

Telefonaktiebolaget LM Ericsson (publ) (ERIC) Mission Statement

The mission statement of Telefonaktiebolaget LM Ericsson (publ) (ERIC) is 'To create connections that matter.' This reflects the company's dedication to innovation and technology that positively impacts society. The mission encompasses more than just technological connectivity; it also emphasizes the importance of creating meaningful interactions and solutions. This mission guides Ericsson's long-term objectives and strategic initiatives, ensuring that the company remains focused on delivering value to its stakeholders through its products and services.

Ericsson's commitment extends to various aspects, including:

• Technological Advancement: Driving progress in telecommunications and related fields.
• Customer Satisfaction: Providing solutions that meet and exceed customer expectations.
• Sustainable Practices: Operating in an environmentally and socially responsible manner.

These elements work together to ensure that Ericsson's mission is not only aspirational but also practical and achievable. Ericsson's mission is supported by its financial performance and strategic initiatives. In 2024, Ericsson reported net sales of SEK 271.5 billion, demonstrating its strong market presence and ability to deliver value. The company's gross margin, excluding restructuring charges, improved to 44.1%, reflecting its focus on profitability and efficiency. Ericsson's investments in R&D, totaling SEK 43.1 billion in 2024, highlight its commitment to innovation and technological leadership. Ericsson's strategic focus areas, including 5G, cloud, and enterprise solutions, align with its mission to create connections that matter by enabling new and enhanced communication capabilities. These financial and strategic elements underscore Ericsson's dedication to its mission and its ability to execute its long-term goals effectively.

The core components of Ericsson's mission statement can be broken down into three key areas:

Creating Connections

This component highlights Ericsson's role in linking people, devices, and ideas through technology. Ericsson aims to facilitate seamless communication and collaboration worldwide. Ericsson's focus on creating connections is evident in its development and deployment of advanced network solutions. As of 2024, Ericsson supports over 150 live 5G networks globally, connecting millions of users and devices. Ericsson's solutions enable high-speed data transfer, low latency, and enhanced network capacity, which are essential for various applications, including remote work, online education, and telemedicine. Ericsson's commitment to creating connections is also reflected in its investments in R&D. In 2024, Ericsson allocated SEK 43.1 billion to R&D, focusing on developing innovative technologies that enhance network performance and expand connectivity options. These investments support the creation of new solutions that address the evolving needs of customers and contribute to the advancement of global communication infrastructure.

That Matter

This emphasizes the importance of providing solutions that are relevant, impactful, and valuable to society. Ericsson focuses on addressing real-world challenges and improving people's lives through its technologies. Ericsson's commitment to providing solutions that matter is demonstrated through its various initiatives and partnerships. In 2024, Ericsson partnered with several organizations to deploy 5G-enabled solutions for healthcare, education, and public safety. These solutions include remote patient monitoring, virtual classrooms, and enhanced emergency response systems. Ericsson's initiatives aim to improve the quality of life for individuals and communities by leveraging technology to address critical needs. Additionally, Ericsson's focus on sustainability reflects its commitment to creating solutions that matter. In 2024, Ericsson reduced its carbon emissions by 20% compared to the base year 2016, demonstrating its efforts to minimize its environmental impact. Ericsson's sustainability initiatives align with its mission to create connections that matter by ensuring that its operations and solutions contribute to a more sustainable future.

Innovation and Technology

Ericsson's mission underscores the company's commitment to continuous innovation and technological advancement. Ericsson invests heavily in research and development to stay at the forefront of the telecommunications industry. Ericsson's dedication to innovation and technology is evident in its significant investments in research and development (R&D). In 2024, Ericsson allocated SEK 43.1 billion to R&D, focusing on developing advanced technologies such as 5G, cloud computing, and artificial intelligence. These investments enable Ericsson to create cutting-edge solutions that drive the evolution of communication networks and support new applications and services. Ericsson's commitment to innovation is also reflected in its numerous patents and technological breakthroughs. As of 2024, Ericsson holds over 60,000 patents, demonstrating its leadership in developing and protecting innovative technologies. Ericsson's patents cover a wide range of areas, including network infrastructure, software solutions, and device technologies. These patents enable Ericsson to maintain a competitive edge and drive the advancement of the telecommunications industry.

To gain more insights into Ericsson's investor profile, you can explore: Exploring Telefonaktiebolaget LM Ericsson (publ) (ERIC) Investor Profile: Who’s Buying and Why?

Telefonaktiebolaget LM Ericsson (publ) (ERIC) Vision Statement

The vision of Telefonaktiebolaget LM Ericsson (publ) (ERIC) is to create technology that transforms how we live, work, and connect. This encompasses leading in mobile technology, driving industry digitalization, and fostering sustainable business practices. Ericsson's strategic direction reflects its commitment to innovation and creating value for stakeholders in a rapidly evolving technological landscape.

Ericsson's pursuit of technological advancement is evident in its substantial R&D investments. In 2024, Ericsson allocated approximately 45.2 billion SEK to research and development, underscoring its focus on pioneering technologies. Ericsson's vision is closely aligned with its financial strategy, which focuses on sustainable and profitable growth. Ericsson reported a net sales of 277.9 billion SEK in 2024, demonstrating the company's strong market position and its ability to execute its vision effectively.

Leading in Mobile Technology

Ericsson aims to maintain its leadership in mobile technology through continuous innovation and strategic partnerships. This involves developing advanced 5G solutions and exploring future generations of mobile technology. Ericsson's commitment to 5G is demonstrated by its significant number of commercial 5G agreements. As of 2024, Ericsson has over 160 commercial 5G agreements with unique communication service providers worldwide. These agreements enable Ericsson to deploy its 5G technology across various markets, strengthening its position as a leader in the mobile technology sector. Ericsson's investments in R&D and strategic collaborations are crucial for achieving its vision of leading in mobile technology. Ericsson's focus extends beyond just technology development to include creating practical and scalable solutions that meet the evolving needs of its customers. Ericsson's vision is supported by its financial performance, which enables the company to invest in future technologies and maintain its competitive edge.

Driving Industry Digitalization

Ericsson envisions playing a pivotal role in driving the digitalization of industries by providing innovative solutions that leverage connectivity and data. This includes developing platforms and applications for various sectors such as manufacturing, healthcare, and transportation. Ericsson's focus on industry digitalization is evident in its development of solutions for enterprise customers. Ericsson offers private 5G networks, IoT platforms, and automation solutions that enable businesses to enhance their operations and achieve greater efficiency. These solutions are designed to meet the specific needs of different industries, reflecting Ericsson's commitment to driving digitalization across diverse sectors. Ericsson's strategic partnerships with industry players and its investments in R&D are essential for realizing its vision of driving industry digitalization. Ericsson's financial stability, with a gross margin of 43.3% in 2024, allows the company to invest in these strategic initiatives and maintain its competitive position.

Fostering Sustainable Business Practices

Ericsson is committed to fostering sustainable business practices by minimizing its environmental impact and promoting ethical conduct throughout its operations. This includes reducing carbon emissions, promoting responsible sourcing, and ensuring diversity and inclusion in the workplace. Ericsson's commitment to sustainability is demonstrated by its various initiatives and targets. Ericsson aims to achieve net-zero emissions in its own operations by 2030 and across its value chain by 2040. Ericsson also focuses on promoting diversity and inclusion, with a target to increase the representation of women in its workforce. Ericsson's sustainability efforts are integrated into its business strategy, reflecting its commitment to creating long-term value for stakeholders. Ericsson's dedication to sustainability is further reinforced by its alignment with global standards and frameworks, such as the UN Sustainable Development Goals. Ericsson's financial performance supports its sustainability initiatives, as the company allocates resources to environmental and social programs.

In summary, Ericsson's vision is centered on technological leadership, industry digitalization, and sustainable business practices. Ericsson's strategic initiatives and financial performance reflect its commitment to achieving this vision and creating value for its stakeholders. Ericsson's focus on innovation, strategic partnerships, and sustainability positions it as a key player in the telecommunications industry. For more insights into Ericsson's journey and values, explore: Telefonaktiebolaget LM Ericsson (publ) (ERIC): History, Ownership, Mission, How It Works & Makes Money.

Telefonaktiebolaget LM Ericsson (publ) (ERIC) Core Values of

As of April 2025, Company's core values are designed to foster innovation, drive customer success, and ensure sustainable and ethical business practices. These values reflect Company's commitment to maintaining its position as a leader in the telecommunications industry. More insights about Company can be found here: Telefonaktiebolaget LM Ericsson (publ) (ERIC): History, Ownership, Mission, How It Works & Makes Money.

Company focuses on several core values, including:

• Customer First
• Respect
• Perseverance
• Professionalism

Each of these values plays a crucial role in shaping the company's culture and guiding its operations.

Customer First

Company prioritizes its customers by focusing on their needs and ensuring their success. This involves:

• Understanding customer challenges and providing tailored solutions.
• Building long-term relationships based on trust and mutual benefit.
• Delivering high-quality products and services that meet or exceed customer expectations.

For example, Company's dedication to customer satisfaction is reflected in its Net Promoter Score (NPS), which has seen a 15% increase over the past two years, indicating improved customer loyalty and advocacy.

Respect

Company fosters a culture of respect among its employees, partners, and stakeholders. This includes:

• Valuing diversity and inclusion in the workplace.
• Promoting open communication and collaboration.
• Treating everyone with dignity and fairness.

In 2024, Company's employee engagement survey showed that 85% of employees feel respected and valued, highlighting the company's commitment to creating an inclusive and supportive work environment.

Perseverance

Company demonstrates perseverance by overcoming challenges and achieving its goals despite obstacles. This involves:

• Maintaining a long-term perspective and staying focused on strategic objectives.
• Adapting to changing market conditions and embracing innovation.
• Learning from failures and continuously improving performance.

For instance, Company's commitment to innovation is evident in its annual R&D investment of over 4 billion USD in 2024, which has led to significant advancements in 5G technology and other key areas.

Professionalism

Company upholds the highest standards of professionalism in all its interactions and operations. This includes:

• Acting with integrity and ethical conduct.
• Maintaining transparency and accountability.
• Delivering excellence in all aspects of its business.

Company's commitment to ethical business practices is demonstrated through its consistent recognition as one of the world's most ethical companies. In 2024, Company was recognized for its strong corporate governance and commitment to sustainability, achieving a 92% score on its environmental, social, and governance (ESG) performance.