XML 208 R64.htm IDEA: XBRL DOCUMENT v3.25.0.1

F1 Financial risk management (Tables)

12 Months Ended

Dec. 31, 2024

Disclosure Of Financial Risk Management [Abstract]

Summary of Capital Objectives-Related Information

Capital objectives-related information

		2024				2023
Free cash flow before M&A as % of net sales1)			16.2%			–0.4%
Positive net cash (SEK billion)1)			37.8			7.8
Credit rating and outlook
Fitch Ratings			BBB–, stable			BBB–, stable
S&P Global			BBB–, stable			BBB–, developing
Moody’s			Ba1, stable			Ba1, stable

1)  For more information about the measures, see Alternative performance measures and Financial terminology.

Summary of Net Exposure for Largest Currencies Impact on Sales

Currency exposure, SEK billion

Currency

Sales trans- lation

Sales  trans-  action

Sales net

Cost trans- lation

Cost trans- action

1)

Cost net

USD2)

93.8

41.7

135.5

–59.0

–41.4

–100.4

EUR

36.6

1.2

37.8

–30.7

–2.0

–32.7

INR

15.1

–0.8

14.3

–8.5

0.1

–8.4

JPY

9.0

–

9.0

–3.0

–

–3.0

GBP

8.8

–1.1

7.7

–7.2

–0.1

–7.3

AUD

5.9

–0.2

5.7

–4.4

0.1

–4.3

CNY

5.0

–

5.0

–3.2

1.0

–2.2

SAR

4.7

0.3

5.0

–3.4

0.1

–3.3

1) External purchases in foreign currency translated to functional currency.

2)  Sales transaction exposure in 2024 includes volume in the cash flow hedge of USD 2,467 million. Based on the outstanding cash flow hedge volume at year end, the hedged sales volume that will occur in 2025 is USD 2,043 million.

Summary of Sensitivity to Interest Rate Increase of One Basis Point

Sensitivity to interest rate increase of 1 basis point, SEK million

< 3M

3–12M

1–3Y

3–5Y

>5Y

Total

Interest-bearing assets

–

–1

–1

–4

–1

–7

Interest-bearing liabilities1)

–

1

2

4

1

8

Derivatives

–

–

–1

–

1

–

Total

–

–

–

–

1

1

1)  Borrowings are included as they are designated FVTPL.

Disclosure of Outstanding Derivatives

Outstanding derivatives

Gross amount recognized

Offset

Net amount presented

Related amounts not offset – collaterals

Net

2024

Currency derivatives1)

Assets

214

–29

185

–92

93

Liabilities

–3,361

29

–3,332

3,237

–95

Interest rate derivatives

Assets

–

–

–

–

–

Liabilities

–5

–

–5

–

–5

2023

Currency derivatives1)

Assets

1,916

–43

1,873

–1,486

387

Liabilities

–1,837

43

–1,794

873

–921

Interest rate derivatives

Assets

–

–

–

–

–

Liabilities

–22

–

–22

–

–22

1)  Currency derivatives designated as cash flow hedge of SEK 0 (1,617) million are included in Other current receivables and SEK 2,229 (679) million in Other current liabilities.

Summary of Currency Derivatives Designated as Hedging Instruments

Foreign exchange forward contracts

		< 3 months				3–12 months				> 1 year								Total
Notional Amount (USD millions)			961				1,082				1,934								3,977
Average forward rate (SEK/USD)			9.93				10.57				10.19

Summary of Movements in Allowances for Impairment of Trade Receivables and Contract Assets

Movements in allowances for impairment of trade

receivables and contract assets

		2024				2023
Opening balance			2,585				2,492
Balances regarding acquired business			–				–16
Increase in allowance			265				268
Write-offs			–21				–35
Translation difference			–2				–124
Closing balance			2,827				2,585

Summary of Aging Analysis of Gross Values of Trade Receivables and Contracts Assets by Risk Category

Aging analysis of gross values of trade receivables and contracts

assets by risk category

						Days past dues
			Not due				1–90				91–180				181–360				>360				Total
2024
Country risk: Low			33,801				2,914				243				270				261				37,489
Country risk: Medium			9,379				1,025				164				168				659				11,395
Country risk: High			2,684				449				117				133				1,635				5,018
Total			45,864				4,388				524				571				2,555				53,902
2023
Country risk: Low			27,431				2,434				445				137				320				30,767
Country risk: Medium			14,369				826				227				224				605				16,251
Country risk: High			3,364				512				186				197				1,522				5,781
Total			45,164				3,772				858				558				2,447				52,799

Summary of Outstanding Customer Finance Credit Exposure

Outstanding customer finance credit risk exposure1)

		2024				2023
Fair value of customer finance credits			4,522				6,917
Financial guarantees for third-parties			3				4
Accrued interest			5				7
Maximum exposure to credit risk			4,530				6,928
Less third-party risk coverage			–35				–79
The Company’s risk exposure, less third-party risk coverage			4,495				6,849

1) This table shows the maximum exposure to credit risk.

Disclosure of Customer Finance Fair Value Reconciliation

Customer finance fair value reconciliation

		2024				2023
Opening balance			6,917				5,370
Additions			20,758				49,583
Disposals/repayments			–23,920				–47,409
Revaluation/amortization of interest1)			407				–467
Translation difference			360				–160
Closing balance			4,522				6,917
of which non-current			190				1,347

1) Revaluation gain recognized in Selling and administrative expenses of SEK 6 (loss of 209) million, of which gain of SEK 6 (loss of 209) million relate to credits held at the end of the year.

Summary of Cash, Cash Equivalents and Interest-Bearing Securities

Cash, cash equivalents and interest bearing securities

		Rating or equi- valent				< 3 M				3–12 M				1–5 Y				>5 Y				Total
2024
Bank deposits							40,749				389				–				–				41,138
Other financial institutions							1,437				–				–				–				1,437
Type of issuer:
Governments			AA/AAA				4,639				995				3,175				603				9,412
Corporates			A2/P2				2,672				198				–				–				2,870
Mortgage institutes			AAA				–				5,353				14,878				783				21,014
							49,497				6,935				18,053				1,386				75,871
2023
Bank deposits							33,298				181				–				–				33,479
Other financial institutions							548				–				–				–				548
Type of issuer:
Governments			AA/AAA				789				490				1,254				–				2,533
Corporates			A2/P2				1,510				296				–				–				1,806
Mortgage institutes			AAA				1,995				5,668				8,676				–				16,339
							38,140				6,635				9,930				–				54,705

Summary of Funding Programs

Funding programs1)

		Amount				Utilized				Unutilized
Euro Medium Term Note program
(USD million)			5,000				2,178				2,822
Commercial Paper Program (SEK million)			10,000				1,615				8,385

1)  There are no financial covenants related to these programs.

Summary of Committed Credit Facilities

Committed credit facilities

Amount

Utilized

Unutilized

Multi-currency revolving credit facility (USD million)1)

2,000

–

2,000

Liquidity revolving credit facility

(USD million)2)

1,000

–

1,000

1)  The facility does not have interest rates linked to credit rating or financial covenants but is linked to two of Ericsson’s sustainability KPIs. The facility matures in September 2028.

2)  The facility matures in May 2026.

Summary of Reconciliation of Level 3 Fair Value of Other Financial Asset Investment in Shares and Participations

Reconciliation of Level 3 fair value of other financial assets

		Investment in shares and participations
Opening balance			2,002
Additions			207
Disposals			–63
Gains or losses1)			–275
Translation differences			–4
Closing balance			1,867

1)  Table shows net gains or losses recognized in Other operating income or expenses, of which SEK 246 million unrealized loss relate to Level 3 assets held at the end of the year.

Summary of Financial Instruments

Financial instruments

2024

2023

Amortized cost

Fair   value

Fair value hierarchy level

Amortized cost

Fair   value

Fair value hierarchy level

SEK billion

Level 1

Level 2

Level 3

Level 1

Level 2

Level 3

Assets at fair value through profit or loss

Customer finance

–

4.5

–

–

4.5

–

6.9

–

–

6.9

Interest-bearing securities

–

31.7

30.4

1.3

–

–

19.1

18.6

0.5

–

Cash equivalents1)

–

24.3

0.3

24.0

–

–

17.5

0.8

16.7

–

Other financial assets

–

2.7

0.8

–

1.9

–

2.1

0.1

–

2.0

Other current assets

–

0.2

–

0.2

–

–

1.9

–

1.9

–

Assets at fair value through OCI

Trade receivable

–

44.2

–

–

44.2

–

42.2

–

–

42.2

Assets at amortized cost

Interest-bearing securities

0.3

–

–

–

–

0.4

–

–

–

–

Other financial assets

0.3

–

–

–

–

0.6

–

–

–

–

Financial assets

0.6

107.6

1.0

89.7

Financial liabilities at designated FVTPL

Parent Company borrowings

–

–35.7

–19.7

–16.0

–

–

–38.0

–23.7

–14.3

–

Financial liabilities at FVTPL

Other current liabilities

–

–3.3

–

–3.3

–

–

–1.8

–

–1.8

–

Liabilities at amortized cost

Trade payables

–30.2

–

–

–

–

–27.8

–

–

–

–

Borrowings

–2.3

–

–

–

–

–8.9

–

–

–

–

Financial liabilities

–32.5

–39.0

–36.7

–39.8

1)  Total Cash and cash equivalent is SEK 43.9 (35.2) billion, of which SEK 24.3 (17.5) billion relating to Cash equivalents are presented in the table above.

Summary of Gross customer finance exposures by geographical area

Gross customer finance exposures by geographical markets

		2024				2023
North America			467				1,839
Europe and Latin America			2,110				2,033
South East Asia, Oceania and India			2,211				3,679
Middle East and Africa			2,328				2,130
Total gross exposure			7,116				9,681
of which its related carrying value			4,522				6,917
Total outstanding number of customer finance arrangements			70				65
Top 5 largest facilities as % of gross exposures			75%				86%
Unutilized customer finance commitments (SEK million)			47,775				37,019

Summary of Exposure of trade receivables and contract assets

Exposure of trade receivables and contract assets

		2024				2023
Gross balance			53,902				52,799
Allowance for expected credit losses			–2,827				–2,585
Net balance and carrying value			51,075				50,214

X

- Definition

The tabular disclosure of changes in allowance for impairment of trade and other receivables.

+ References

No definition available.

+ Details

Name:	eric_DisclosureOfChangesInAllowanceForImpairmentOfTradeAndOtherReceivablesExplanatory
Namespace Prefix:	eric_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Disclosure of committed credit facilities explanatory.

+ References

No definition available.

+ Details

Name:	eric_DisclosureOfCommittedCreditFacilitiesExplanatory
Namespace Prefix:	eric_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

The disclosure of currency exposure.

+ References

No definition available.

+ Details

Name:	eric_DisclosureOfCurrencyExposureExplanatory
Namespace Prefix:	eric_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Disclosure of customer finance fair value reconciliation.

+ References

No definition available.

+ Details

Name:	eric_DisclosureOfCustomerFinanceFairValueReconciliationExplanatory
Namespace Prefix:	eric_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Disclosure of exposure of trade receivables and contract assets explanatory.

+ References

No definition available.

+ Details

Name:	eric_DisclosureOfExposureOfTradeReceivablesAndContractAssetsExplanatory
Namespace Prefix:	eric_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Disclosure of financial risk management.

+ References

No definition available.

+ Details

Name:	eric_DisclosureOfFinancialRiskManagementAbstract
Namespace Prefix:	eric_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

The disclosure of funding programs.

+ References

No definition available.

+ Details

Name:	eric_DisclosureOfFundingProgramsExplanatory
Namespace Prefix:	eric_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Disclosure of gross customer finance exposures by geographical area explanatory.

+ References

No definition available.

+ Details

Name:	eric_DisclosureOfGrossCustomerFinanceExposuresByGeographicalAreaExplanatory
Namespace Prefix:	eric_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

The disclosure of outstanding customer finance.

+ References

No definition available.

+ Details

Name:	eric_DisclosureOfOutstandingCustomerFinanceExplanatory
Namespace Prefix:	eric_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

The disclosure of credit risk. [Refer: Credit risk [member]]

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 7
-IssueDate 2024-01-01
-Section Credit risk
-URI https://taxonomy.ifrs.org/xifrs-link?type=IFRS&num=7&code=ifrs-tx-2024-en-r&doctype=Standard&dita_xref=IFRS07_g35A-38_TI
-URIDate 2024-03-27

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Name IAS
-Number 1
-IssueDate 2024-01-01
-Paragraph 10
-Subparagraph e
-URI https://taxonomy.ifrs.org/xifrs-link?type=IAS&num=1&code=ifrs-tx-2024-en-r&anchor=para_10_e&doctype=Standard
-URIDate 2024-03-27

+ Details

Name:	ifrs-full_DisclosureOfCreditRiskExplanatory
Namespace Prefix:	ifrs-full_
Data Type:	dtr-2022:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

The disclosure of deposits from banks. [Refer: Deposits from banks]

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Name IAS
-Number 1
-IssueDate 2024-01-01
-Paragraph 10
-Subparagraph e
-URI https://taxonomy.ifrs.org/xifrs-link?type=IAS&num=1&code=ifrs-tx-2024-en-r&anchor=para_10_e&doctype=Standard
-URIDate 2024-03-27

+ Details

Name:	ifrs-full_DisclosureOfDepositsFromBanksExplanatory
Namespace Prefix:	ifrs-full_
Data Type:	dtr-2022:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

The entire disclosure for financial instruments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 7
-IssueDate 2024-01-01
-Section Scope
-URI https://taxonomy.ifrs.org/xifrs-link?type=IFRS&num=7&code=ifrs-tx-2024-en-r&doctype=Standard&dita_xref=IFRS07_g3-5A_TI
-URIDate 2024-03-27

+ Details

Name:	ifrs-full_DisclosureOfFinancialInstrumentsExplanatory
Namespace Prefix:	ifrs-full_
Data Type:	dtr-2022:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

The disclosure of information about the terms and conditions of hedging instruments and how they affect future cash flows. [Refer: Hedging instruments [domain]]

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 7
-IssueDate 2024-01-01
-Paragraph 23A
-URI https://taxonomy.ifrs.org/xifrs-link?type=IFRS&num=7&code=ifrs-tx-2024-en-r&anchor=para_23A&doctype=Standard
-URIDate 2024-03-27

+ Details

Name:	ifrs-full_DisclosureOfInformationAboutTermsAndConditionsOfHedgingInstrumentsAndHowTheyAffectFutureCashFlowsExplanatory
Namespace Prefix:	ifrs-full_
Data Type:	dtr-2022:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

The disclosure of investments other than investments accounted for using the equity method. [Refer: Investments other than investments accounted for using equity method]

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Name IAS
-Number 1
-IssueDate 2024-01-01
-Paragraph 10
-Subparagraph e
-URI https://taxonomy.ifrs.org/xifrs-link?type=IAS&num=1&code=ifrs-tx-2024-en-r&anchor=para_10_e&doctype=Standard
-URIDate 2024-03-27

+ Details

Name:	ifrs-full_DisclosureOfInvestmentsOtherThanInvestmentsAccountedForUsingEquityMethodExplanatory
Namespace Prefix:	ifrs-full_
Data Type:	dtr-2022:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

The disclosure of information that enables users of financial statements to evaluate the entity's objectives, policies and processes for managing capital.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Name IAS
-Number 1
-IssueDate 2024-01-01
-Paragraph 134
-URI https://taxonomy.ifrs.org/xifrs-link?type=IAS&num=1&code=ifrs-tx-2024-en-r&anchor=para_134&doctype=Standard
-URIDate 2024-03-27

+ Details

Name:	ifrs-full_DisclosureOfObjectivesPoliciesAndProcessesForManagingCapitalExplanatory
Namespace Prefix:	ifrs-full_
Data Type:	dtr-2022:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

The disclosure of the offsetting of financial assets and financial liabilities. [Refer: Financial assets; Financial liabilities]

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 7
-IssueDate 2024-01-01
-Section Offsetting financial assets and financial liabilities
-URI https://taxonomy.ifrs.org/xifrs-link?type=IFRS&num=7&code=ifrs-tx-2024-en-r&doctype=Standard&dita_xref=IFRS07_g13A-13F_TI
-URIDate 2024-03-27

+ Details

Name:	ifrs-full_DisclosureOfOffsettingOfFinancialAssetsAndFinancialLiabilitiesExplanatory
Namespace Prefix:	ifrs-full_
Data Type:	dtr-2022:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

The disclosure of the sensitivity analysis for types of market risk to which the entity is exposed, showing how profit or loss and equity would have been affected by changes in the relevant risk variable that were reasonably possible at that date. [Refer: Market risk [member]]

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 7
-IssueDate 2024-01-01
-Paragraph 40
-Subparagraph a
-URI https://taxonomy.ifrs.org/xifrs-link?type=IFRS&num=7&code=ifrs-tx-2024-en-r&anchor=para_40_a&doctype=Standard
-URIDate 2024-03-27

+ Details

Name:	ifrs-full_SensitivityAnalysisForEachTypeOfMarketRisk
Namespace Prefix:	ifrs-full_
Data Type:	dtr-2022:textBlockItemType
Balance Type:	na
Period Type:	duration