- Ericsson is currently in the process of issuing a EUR 500 million unsecured 8-year bond under its
- In connection with this proposed issue, Ericsson updates the
risk factors in its prospectus regarding geopolitical and trade
STOCKHOLM, May 24, 2021 /PRNewswire/ -- As previously
disclosed by Ericsson (NASDAQ: ERIC) in its Q4 2020 financial
report and in its 2020 annual report, there is a risk that the
decision by the Post and Telecommunication Authority (PTS) to
exclude Chinese vendors' products from the 5G auction in
Sweden may adversely impact the
economic interests of Sweden and
Swedish industry, including those of Ericsson.
This risk has been included in the risk factors in Ericsson's
EMTN prospectus. The update coincides with Ericsson's proposed
issue under the EMTN program and the change in relation to the risk
factor, as shown in the Q4 report, is reflected in the
italicized text below.
Updated extract of text from Q4 report
Ongoing geopolitical and trade uncertainty from a range of
factors may have a material adverse impact on our business,
operations, business prospects and consequently on operating
results, financial conditions and our ability to meet our
There are uncertainties for the future bilateral trading
relationship between China and
several countries as a result of restrictions towards Chinese
vendors in national 5G networks.
In Sweden, the Post and
Telecommunication Authority (PTS) has taken a decision to exclude
Chinese vendors' products from the 5G auction. Of special relevance
for Ericsson in this context is the trade relationship between
Sweden and China, since Ericsson, even though it is a
global company with a presence on all global markets, has its
headquarters in Sweden and
therefore risks collateral damages from a weakened Swedish-Chinese
relationship as a result of this decision. There is a risk that the
above lead to measures taken by China that are targeted at the economic
interests of Sweden and Swedish
industry, including those of Ericsson. While Ericsson is invited
to various ongoing tender processes in China, the final outcome remains uncertain and
it is the company's current assessment that the risk has increased
that Ericsson will in those tenders be allocated a significantly
lower market share than its current market share.
The geopolitical situation can have consequences on the entire
industry, with an increased likelihood of further industry split,
separation of global value chains and separation of global
standards for mobile telecommunications. This overall development
has also led to several countries evaluating how to ensure
uninterrupted access to telecommunication network infrastructure,
for example through promoting disaggregation of the Radio Access
Network and support of national communication network
infrastructure champions as alternative to the established global
vendors such as Ericsson although the timing and extent of this
All of the above may have a material and potentially lasting
adverse impact on our business, including sales, market share,
market access and supply chain and R&D activities, our
financial condition and results of operations."
Please also see the Annual Report 2020 for risk factors and
uncertainties of relevance to Ericsson and its business.
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MORE INFORMATION AT:
(+46 10 719 69 92)
(+46 10 719 00 00)
Ericsson enables communications service providers to capture the
full value of connectivity. The company's portfolio spans Networks,
Digital Services, Managed Services, and Emerging Business and is
designed to help our customers go digital, increase efficiency and
find new revenue streams. Ericsson's investments in innovation have
delivered the benefits of telephony and mobile broadband to
billions of people around the world. The Ericsson stock is listed
on Nasdaq Stockholm and on Nasdaq New York. www.ericsson.com
This release includes forward-looking statements, including
statements reflecting management's current views relating to the
growth of the market, future market conditions, future events,
financial condition, and expected operational and financial
performance, including, in particular the following:
– Our goals, strategies, planning assumptions and operational or
financial performance expectations
– Industry trends, future characteristics and development of the
markets in which we operate
– Our future liquidity, capital resources, capital expenditures,
cost savings and profitability
– The expected demand for our existing and new products and
services as well as plans to launch new products and services
including research and development expenditures
– The ability to deliver on future plans and to realize
potential for future growth
– The expected operational or financial performance of strategic
cooperation activities and joint ventures
– The time until acquired entities and businesses will be
integrated and accretive to income
– Technology and industry trends including the regulatory and
standardization environment in which we operate, competition and
our customer structure.
The words "believe," "expect," "foresee," "anticipate,"
"assume," "view," "intend," "likely," "projects," "may," "could,"
"plan," "estimate," "forecast," "will," "should," "would,"
"predict," "aim," "ambition," "seek," "potential," "target,"
"might," "continue," or, in each case, their negative or
variations, and similar words or expressions are used to identify
forward-looking statements. Any statement that refers to
expectations, projections or other characterizations of future
events or circumstances, including any underlying assumptions, are
We caution investors that these statements are subject to risks
and uncertainties many of which are difficult to predict and
generally beyond our control that could cause actual results to
differ materially from those expressed in, or implied or projected
by, the forward-looking information and statements.
Important factors that could affect whether and to what extent
any of our forward-looking statements materialize include, but are
not limited to, the factors described in the section "Risk Factors"
in the latest interim report, and in "Risk Factors" in the Annual
These forward-looking statements also represent our estimates
and assumptions only as of the date that they were made. We
expressly disclaim a duty to provide updates to these
forward-looking statements, and the estimates and assumptions
associated with them, after the date of this release, to reflect
events or changes in circumstances or changes in expectations or
the occurrence of anticipated events, whether as a result of new
information, future events or otherwise, except as required by
applicable law or stock exchange regulations.
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The following files are available for download:
Ericsson updates risk
factors for Euro corporate bond prospectus