THIRD QUARTER HIGHLIGHTS

“Sales for comparable units, adjusted for FX, grew 3%. Reported sales were slightly down YoY, primarily due to continued currency headwind,” said Hans Vestberg, President and CEO of Ericsson (NASDAQ:ERIC).

“We are currently seeing sales coming under some pressure. In addition to FX, the major drivers for this development are the two large mobile broadband coverage projects, which peaked in North America in the first half of 2013. We also saw impact from reduced activity in Japan where we are getting closer to completion of a major project.

The 4G/LTE tenders in China continue and so far two of the major operators have made their choices. Despite having insignificant market share for 3G, Ericsson has been named technology partner for both these operators and we will now build on this initial footprint.

The pace is picking up in the European market with continued WCDMA/LTE investments and a major investment announcement by one of the large operators. Ericsson now sees growth in several European markets and margins are also improving as the network modernization projects gradually come to an end and we engage more in new capacity and LTE business.

The momentum for Professional Services continued with stable earnings and 59 signed managed services contracts year to date. As a result of our continuous work to implement global processes, methods and tools to increase efficiency, Global Services margins improved during the quarter.

Profitability for the group continued to improve YoY, partly offset by currency headwind. The improvement was driven by higher gross margin due to less dilutive impact from European network modernization and somewhat improved business mix.

During the quarter Ericsson has continued to strengthen its market leadership. In September we launched a small-cell product, the Ericsson Radio Dot System, for indoor coverage. The new product opens up new revenue opportunities for operators and initial customer response has been very positive. In addition, we closed the acquisition of Mediaroom which places Ericsson as the world’s largest IPTV player, by market share.

The macroeconomic climate has stabilized in many OECD markets. However, uncertainty still remains in certain parts of the world. The long-term fundamentals in the industry remain attractive and we are well positioned to continue to support our customers in a transforming ICT market,” concludes Vestberg.

Sales for comparable units, adjusted for FX, increased 3% YoY and declined -2% QoQ. Reported sales decreased YoY, mainly driven by lower sales in North East Asia and India. Segments Networks and Global Services showed slightly lower reported sales YoY, while Support Solutions saw a more significant decline in volumes. CDMA sales in North America, as well as GSM sales in China, continued to decline.

Reported sales declined QoQ, mainly due to lower project activity in North America and North East Asia. Segments Networks and Global Services showed a decline in reported sales QoQ, while Support Solutions increased slightly.

Restructuring charges for Ericsson amounted to SEK 0.7 (0.6) b.

Gross margin increased YoY to 32.0% (30.4%), supported by lower share of network modernization projects in Europe and somewhat improved business mix. The gross margin declined slightly QoQ. The share of services sales was unchanged YoY and QoQ at 45%.

Total operating expenses increased slightly YoY by SEK 0.2 b. to SEK 13.5 (13.3) b. Excluding restructuring charges, operating expenses year-to-date were down -3% YoY. R&D expenses amounted to SEK 7.7 (7.5) b. and selling, general and administrative expenses (SG&A) amounted to SEK 5.8 (5.8) b.

Other operating income and expenses amounted to SEK 0.8 (0.3) b. due to a positive re-evaluation effect of SEK 0.8 b for new hedges taken in 2013. For these new hedges we do not apply hedge accounting (see Accounting Policies). The main part of this positive re-evaluation effect derives from our hedge contract balance in USD, which has increased in value as the SEK has strengthened towards USD between June 30 and September 30, 2013. Ericsson’s USD closing rate on September 30, 2013, was SEK 6.42 (6.73 on June 30). In Q213 we had a negative re-evaluation effect for new hedges of SEK -0.2 b.

Ericsson’s share in ST-Ericsson’s income before tax was SEK 0.0 (-0.6) b.

Operating income, including JV, increased to SEK 4.2 (3.1) b. Operating margin, including JV, was 8.0% (5.7%).

Operating income and operating margin were positively impacted by improved gross margin and no negative effects from ST-Ericsson. Currency had an overall negative impact on operating margin YoY, despite positive re-evaluation effect of new hedges.

Financial net amounted to SEK 0.1 (0.1) b. and improved QoQ from SEK -0.3 b. due to positive currency exchange re-evaluation effects on financial investments and liabilities. Tax costs were SEK -1.3 (-1.0) b.

Net income increased to SEK 3.0 (2.2) b.

EPS diluted was SEK 0.90 (0.67). EPS Non-IFRS was SEK 1.31 (1.04).

All comparisons relating to balance sheet items are QoQ.

Trade receivables increased to SEK 64.9 (63.1) b. Inventory decreased to SEK 28.1 (29.7) b. Trade payables decreased to 19.2 (20.8) b.

Cash, cash equivalents and short-term investments amounted to SEK 60.7 (64.8) b. The net cash position decreased by SEK -2.7 b. to SEK 24.7 (27.4) b., primarily due to increased working capital and acquisitions.

During the quarter, approximately SEK 1.5 b. of provisions were utilized, of which SEK 0.5 b. were related to restructuring. Additions of SEK 0.7 b. were made, of which SEK 0.2 b. related to restructuring. Reversals of SEK 0.2 b. were made. Cash outlays of SEK 1.4 b. remain to be made from the restructuring provision.

Cash flow from operating activities was SEK 1.5 b. Cash conversion year-to-date is 29%.

The total number of employees increased QoQ to 113,989 (111,805) primarily due to transfer of former ST-Ericsson employees to Ericsson and the closing of the Mediaroom acquisition.

Sales for comparable units, adjusted for FX, increased 4% YoY. The growth was driven by mobile broadband business in Europe and Latin America. Growth was partly offset by slightly lower sales in North America where two large mobile broadband coverage projects peaked in first half of 2013. In North East Asia GSM investments continued to decline in China, while the market transitions to 4G. Japan continued to be negatively impacted by currency as well as reduced activity as we are getting closer to completion of a major project. Networks sales were down QoQ.

CDMA-related sales amounted to SEK 0.9 b. and declined by -42% YoY and was flat QoQ. Sales related to circuit-switched core continued to decline.

The interest for our Smart Services Router (SSR 8000) continues and in the quarter we signed 12 new contracts, of which four were for fixed networks.

The launch of the innovative indoor wireless solution – the Ericsson Radio Dot System – marks the latest step in Ericsson’s network strategy. It is ultra-small but can scale to literally unlimited capacity, it is easy to install and 100% integrated with existing mobile networks. Since the launch Ericsson is engaging with nearly every tier-one operator worldwide. The new product will be commercially available second half 2014.

Operators in most markets now have LTE plans in place. In parallel, demand for HSPA is showing growth in seven out of our 10 regions.

Operating income increased YoY due to less dilutive effects from the network modernization projects in Europe, improved commercial excellence, optimization of the portfolio as well as continued operational efficiency gains. Operating income increased QoQ. Currency had an overall negative impact on operating margin YoY, despite a positive unrealized hedge effect. Restructuring charges amounted to SEK 0.3 (0.1) b. in the quarter.

Sales for comparable units, adjusted for FX, increased 3% YoY. The growth was driven by high activity in North America. Both Professional Services and Network Rollout grew adjusted for FX, however with a slower growth in Network Rollout compared to first half 2013.

The momentum in Professional Services continued with 59 managed services contracts signed YTD of which 19 in the quarter. The industry trend is that operators shift focus from technology-driven managed services to more customer-centric. We see an increasing demand for managed services in the IT area as well as in the emerging Broadcast Services business.

Global Services operating margin improved QoQ with reduced losses in Network Rollout partly as an effect of a more favorable project mix, with a reduced impact of the network modernization projects in Europe. Professional Services margin was stable at 14%.

Restructuring charges amounted to SEK 0.4(0.4) b. in the quarter.

We have closed two acquisitions in the Consulting and System Integration area in the quarter: TeleOss acquisition in Thailand and the TelcoCell acquisition in Canada, adding OSS and BSS capabilities.

The YoYdecline in sales was primarily driven by divestments as well as portfolio changes and somewhat lower sales of compression technology. OSS sales continued to grow both YoY and QoQ.

Sales for comparable units, adjusted for FX and the divestments of IPX and ACS, were down-15% YoY and grew 3% QoQ. IPX sales amounted to SEK 0.4 b. in Q312.

We see an increasing interest from customers to partner with selected vendors that can address a larger part of the OSS and BSS domain, as growth in mobile broadband increases the need for improved consumer experience. Ericsson is well positioned to take on such a responsibility with our OSS and BSS software portfolio.

Pay TV service providers continue to grow as the primary source of premium TV content provided to consumers. Consumers increasingly want their TV service on all devices, and flexibility of access to content packages and bundles. This is part of what drives the sharp increase in video traffic in the networks. As a consequence, service providers and network owners require solutions to make networks video centric and efficient for video delivery.

During the quarter we closed the acquisition of Microsoft’s TV solution business Mediaroom, further strengthening our position in the growing media management market and adding to Ericsson sales from Q413.

Operating margin was negatively impacted by lower sales YoY.

The number of subscriptions served by Ericsson’s charging and billing solutions was 2 billion at end of the period.

On August 5, 2013 Ericsson and STMicroelectronics announced the closing of the transaction for the split up of ST-Ericsson. This follows the announcement the companies made on March 18, 2013 on the chosen strategic option for the future of the joint venture. Effective August 2, 2013 Ericsson has taken on the design, development and sales of the LTE multimode thin modem solutions, including 2G, 3G and 4G interoperability. In total, approximately 1,800 employees and contractors have joined Ericsson.

The LTE multimode thin modems are an important part for Ericsson vision of 50 billion connected devices in the Networked Society. The market potential is there and Ericsson will now focus on bringing the best modems to the market and work closely with customers to integrate them into their products. Ericsson now has a highly focused thin-modem operation with industry-leading technology and intellectual property. The LTE multimode thin-modems are targeted for smartphones and tablets as well as other connected devices.

In Q412, Ericsson made a provision of SEK 3.3 b., which provides for Ericsson’s share of obligations for the wind-down of ST-Ericsson. With current plans and visibility the provision is expected to cover the cost for the complete wind-down of ST-Ericsson and integration of the LTE multimode thin modems operations into Ericsson.

Ericsson’s share in ST-Ericsson’s income before tax was SEK 0.0 (-0.6) b. From October 1, 2013, the multimode thin modem business has been consolidated into Ericsson and the operation will continue to be reported as a separate segment. Our current best estimate is that the Modem segment will generate operating losses of approximately SEK -0.5 b. in Q413, primarily related to R&D expenses.

North America

Sales for Networks continued to decline QoQ as a result of the two large mobile broadband coverage projects which peaked in first half of 2013. Smartphone penetration, increased mobile broadband consumption and 4G device lineup remain drivers for network expansion. Network evolution and professional services remain a growth theme in North America while CDMA sales continue to decline.

Latin America

3G network quality and initial LTE rollouts continued to dominate operator investments. Macroeconomic development in Brazil and Mexico slowed down and currency impacted business negatively.

Northern Europe and Central Asia

Sales grew both YoY and QoQ. In Russia, there is slow recovery based on 3G investments, but also deployments of LTE. Operators showed an increased interest in OSS and BSS solutions. Managed Services business continued to show good development.

Western and Central Europe

Sales grew YoY driven by network modernization in certain markets. Capacity discussions have been initiated with operators who recently have modernized their networks.

Mediterranean

YoY growth was driven by continued 3G rollout in Northwest Africa and modernization projects in France. YoY sales were negatively impacted by lower investments in Italy.

Middle East

Sales grew both YoY and QoQ. LTE is being deployed in the region but still represents a small share of Network sales. There is continued demand for Professional Services, both System Integration and Managed Services, as operators seek network performance quality and operational efficiencies. Political unrest prevails in several countries and is still impacting sales.

Sub-Saharan Africa

Sales declined YoY despite continued growth in services mainly fuelled by Managed Services. Operators continue to build out capacity on 2G and 3G networks to improve quality of service. Initial LTE deployments are on-going but are still a small share of sales.

India

Sales declined YoY as investments continue to be slow, in spite of signs of improvements in the regulatory environment. Services sales grew, mainly driven by managed services business.

North East Asia

Sales declined YoY. Japan continued to be negatively impacted by currency and reduced activity as we are getting closer to completion of a major project. GSM investments in China continued to structurally decline.

The spectrum auction in South Korea was concluded but business activity remained low during the quarter.

South East Asia and Oceania

Sales in the region grew slightly YoY. Lower business activities in Indonesia in the quarter were offset by projects in Thailand. The business in several countries started to be impacted by currency depreciations towards the end of the quarter.

Other

IPX was divested at the end of Q312 impacting Support Solutions sales YoY comparison. Licence revenue showed a slight decline in the quarter but are progressing well on a YTD basis. Sales of broadcast services, telecom cables, power modules and other businesses are also included in “Other”. Power cables were divested in the beginning of Q313.

Income after financial items was SEK 4.2 (10.5) b. The Parent Company’s financial position had the following major changes during the year; decreased cash, cash equivalents and short-term investments of SEK 14.1 b. and decreased current and non-current receivables from subsidiaries of SEK 6.1 b. At the end of the quarter, cash, cash equivalents and short-term investments amounted to SEK 43.4 (57.4) b.

In accordance with the conditions of the long-term variable remuneration program (LTV) for Ericsson employees, 2,800,951 shares from treasury stock were sold or distributed to employees during the third quarter. The holding of treasury stock on September 30, 2013, was 76,943,129 Class B shares.

Samsung litigation

On November 27, 2012, Ericsson filed two patent infringement lawsuits in the US District Court for the Eastern District of Texas against Samsung. Ericsson seeks damages and an injunction. Ericsson also asked the Court to adjudge that Samsung breached its commitment to license any standard-essential patents it owns on fair, reasonable, and non-discriminatory terms and to declare Samsung’s allegedly standard essential patents to be unenforceable. On March 18, 2013, Samsung filed its answers and counterclaims in the Ericsson suits (above) in Texas, USA.

No trials are scheduled in the district court litigation until late 2015.

On November 30, 2012, Ericsson filed a complaint with the US International Trade Commission (ITC) seeking an exclusion order blocking Samsung from importing certain products into the US. On December 21, 2012, Samsung filed a complaint with the ITC seeking an exclusion order blocking Ericsson from import of certain products into the US.

Ericsson closes acquisition of Microsoft Mediaroom

On September 5, 2013 Ericsson completed the acquisition of Microsoft’s TV solution business Mediaroom.

Ericsson announced on April 8, 2013 that it had reached an agreement with Microsoft to acquire its TV solution business Mediaroom. With the acquisition, Ericsson is now a leading provider of IPTV and multi screen solutions with a market share of around 25%. The former Mediaroom business unit, including approximately 400 employees, is now integrated into Business Unit Support Solutions and is called Ericsson Mediaroom.

Ericsson acquires Airvana’s EVDO business

Ericsson announced on September 6, 2013 that it has acquired Airvana Network Solutions’ EVDO business. Airvana Network Solutions is a Massachusetts-based company and supplier of EVDO software to Ericsson.

The lawsuit filed by Airvana in February 2012, against Ericsson in the Supreme Court of the State of New York, USA, has been dismissed.

Acquisition of Red Bee Media

Ericsson announced on July 1, 2013 its intention to acquire Red Bee Media from an entity controlled by Macquarie Advanced Investment Partners, L.P. The acquisition supports Ericsson’s strategy to grow in the broadcast services market. It will bring 1,500 employees, as well as media services and operations facilities in the UK, France, Germany, Spain and Australia.

On September 30, 2013 The Office of Fair Trading (OFT) in the UK decided to refer Ericsson’s acquisition of Red Bee Media to the Competition Commission. Ericsson will be working to address the OFT’s concerns before the Competition Commission in order to progress with the acquisition of Red Bee Media.

Head of Business Unit Support Solutions based in Silicon Valley, USA

On July 18, 2013 Ericsson announced that Head of Business Unit Support Solutions, and member of the company’s Executive Leadership Team, Per Borgklint, will be based in Silicon Valley.

POST-CLOSING EVENTS

On new positions

Effective October 1, 2013, a new unit called Group Function (GF) Business Excellence & Common Functions was formed. Effective the same date, Anders Thulin was appointed Head of GF Business Excellence & Common Functions and Chief Information Officer (CIO), reporting to President and CEO, Hans Vestberg, and a member of the Executive Leadership Team.

Ericsson’s operational and financial risk factors and uncertainties along with our strategies and tactics to mitigate risk exposures or limit unfavorable outcomes are described in our Annual Report 2012. Compared to the risks described in the Annual Report 2012, no material, new or changed risk factors or uncertainties have been identified in the quarter.

Risk factors and uncertainties in focus short-term for the Parent Company and the Ericsson Group include:

Ericsson stringently monitors the compliance with all relevant trade regulations and trade embargos applicable to dealings with customers operating in countries where there are trade restrictions or trade restrictions are discussed. Moreover, Ericsson operates globally in accordance with Group policies and directives for business ethics and conduct.

Stockholm, October 24, 2013

Telefonaktiebolaget LM Ericsson (publ)

Hans Vestberg, President and CEO

Org. Nr. 556016-0680

Date for next report: January 30, 2014

Introduction

We have reviewed this report for the period January 1, 2013, to September 30, 2013, for Telefonaktiebolaget LM Ericsson (publ). The board of directors and the CEO are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

Scope of review

We conducted our review in accordance with the Swedish Standard on Review Engagements SÖG 2410, Review of Interim Report Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (ISA) and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act, regarding the Group, and with the Swedish Annual Accounts Act, regarding the Parent Company.

Stockholm, October 24, 2013

PricewaterhouseCoopers AB

Peter Nyllinge

Authorized Public Accountant

Auditor in Charge

Ericsson invites media, investors and analysts to a press conference at the Ericsson Studio, Grönlandsgången 4, Stockholm, at 09.00 (CET), October 24, 2013. An analysts, investors and media conference call will begin at 14.00 (CET).

Live webcast of the press conference and conference call as well as supporting slides will be available at www.ericsson.com/press and www.ericsson.com/investors

Video material will be published during the day on www.ericsson.com/press

For further information, please contact:

Helena Norrman,

Senior Vice President,

Communications

Phone: +46 10 719 3472

E-mail: investor.relations@ericsson.com or

media.relations@ericsson.com

Telefonaktiebolaget LM Ericsson (publ)

Org. number: 556016-0680

Torshamnsgatan 23

SE-164 83 Stockholm

Phone: +46 10 719 0000

www.ericsson.com

Investors

Peter Nyquist, Vice President,

Investor Relations

Phone: +46 10 714 64 49, +46 70 575 29 06

E-mail: peter.nyquist@ericsson.com

Stefan Jelvin, Director,

Investor Relations

Phone: +46 10 714 20 39, +46 70 986 02 27

E-mail: stefan.jelvin@ericsson.com

Åsa Konnbjer, Director,

Investor Relations

Phone: +46 10 713 39 28, +46 73 082 5928

E-mail: asa.konnbjer@ericsson.com

Rikard Tunedal, Director,

Investor Relations

Phone: +46 10 714 5400, +46 761 005 400

E-mail: rikard.tunedal@ericsson.com

Media

Ola Rembe, Vice President,

External Communications

Phone: +46 10 719 97 27, +46 73 024 4873

E-mail: media.relations@ericsson.com

Corporate Communications

Phone: +46 10 719 69 92

E-mail: media.relations@ericsson.com

All statements made or incorporated by reference in this release, other than statements or characterizations of historical facts, are forward-looking statements. These forward-looking statements are based on our current expectations, estimates and projections about our industry, management’s beliefs and certain assumptions made by us. Forward-looking statements can often be identified by words such as “anticipates”, “expects”, “intends”, “plans”, “predicts”, “believes”, “seeks”, “estimates”, “may”, “will”, “should”, “would”, “potential”, “continue”, and variations or negatives of these words, and include, among others, statements regarding: (i) strategies, outlook and growth prospects; (ii) positioning to deliver future plans and to realize potential for future growth; (iii) liquidity and capital resources and expenditure, and our credit ratings; (iv) growth in demand for our products and services; (v) our joint venture activities; (vi) economic outlook and industry trends; (vii) developments of our markets; (viii) the impact of regulatory initiatives; (ix) research and development expenditures; (x) the strength of our competitors; (xi) future cost savings; (xii) plans to launch new products and services; (xiii) assessments of risks; (xiv) integration of acquired businesses; (xv) compliance with rules and regulations and (xvi) infringements of intellectual property rights of others.

In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. These forward-looking statements speak only as of the date hereof and are based upon the information available to us at this time. Such information is subject to change, and we will not necessarily inform you of such changes. These statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict. Therefore, our actual results could differ materially and adversely from those expressed in any forward-looking statements as a result of various factors. Important factors that may cause such a difference for Ericsson include, but are not limited to: (i) material adverse changes in the markets in which we operate or in global economic conditions; (ii) increased product and price competition; (iii) reductions in capital expenditure by network operators; (iv) the cost of technological innovation and increased expenditure to improve quality of service; (v) significant changes in market share for our principal products and services; (vi) foreign exchange rate or interest rate fluctuations; and (vii) the successful implementation of our business and operational initiatives.