The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Francois-Xavier Bouvignies - UBS Group AG - Analyst
: So my question would be on the topic of tariff. So you mentioned this uncertainty and this 1-percentage-point impact on tariff. Could you elaborate
how the tariffs are impacting your business? This 100 basis points, a bit more details as to the building blocks of this impact. And importantly, with
the tariff in mind, do you see any inventory build happening as we speak ahead of this tariff, i.e., could we expect a more negative impact in the
second half of the year? That would be my question.
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APRIL 15, 2025 / 7:00AM, ERICb.ST - Q1 2025 Telefonaktiebolaget LM Ericsson Earnings Call
Lars Sandstrom - Telefonaktiebolaget LM Ericsson - Chief Financial Officer, Senior Vice President, Head of Group Function Finance
If you look at the building blocks, I think it's very much connected to the material flow that we have, both direct components, but also site material,
et cetera, that we have in the complete delivery to our customers. And as you know, we have production today well diversified in different parts
with production in North America, South America, Europe, Asia, et cetera. So that is the resilience we have built up over the time here. So that is
why some parts of this impact is coming on these flows that we see based on the current decisions then that we had last Friday.
And I think when it comes to your question there on inventory buildup, we had some inventory buildup already here in Q1 in our own sites to
make sure that we have material in place and could handle a bit of the situation. But going forward, we don't see big impact from that also from
a customer perspective. We don't expect too big impacts from this part.
B÷rje Ekholm - Telefonaktiebolaget LM Ericsson - President, Chief Executive Officer, Head of Segment Enterprise, Director
I would only say one thing that that's part of Lars' answer is the ecosystem of component suppliers, right? That's where we actually invested quite
a lot over the years to broaden that, but that's probably where we need to be a bit more active also to build, call it, the Western ecosystem in that
-- in those components.
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