Sales, adjusted for comparable units and currency, were stable YoY. Growth in North America, Mainland China and South East Asia was offset by weak development in Europe and some emerging markets. Profitability increased YoY, driven by improvements in Networks while Global Services had a challenging quarter.

Business

Segment Networks sales declined slightly YoY. A continued weak macro-economic environment impacted sales negatively in some emerging markets in the Middle East and Latin America. In addition, sales in Europe were down primarily driven by completion of mobile broadband projects in 2015. Mobile broadband sales in North America and South East Asia grew and the fast pace of 4G deployments in Mainland China continued. IPR licensing revenues grew YoY, mainly driven by recently signed contracts which included certain one-time items. Software sales in IP and core networks declined.

Sales in segment Global Services declined YoY. This was mainly due to lower Network Rollout activities in Europe and Latin America. Professional Services sales were stable with growth in Consulting and Systems Integration driven by transformation projects and stable Managed Services sales with 21 contracts signed in the quarter.

Sales in Support Solutions increased YoY due to higher IPR licensing revenues. The underlying demand remains strong in OSS and BSS as data growth and increased focus on customer experience drives operators to transform their OSS and BSS solutions.

Profitability

Gross margin declined despite higher IPR licensing revenues. The main reasons were lower margins in Global Services, a higher share of mobile broadband coverage projects in parts of Asia and lower software sales in IP and core networks. Operating margin increased YoY to 6.7% (4.0%), driven by reduced operating expenses and a positive currency effect.

Segment Networks operating margin improved through higher profitability in Radio supported by growth in IPR licensing revenues. Global Services had a challenging quarter partly due to lower mobile broadband coverage activities, leading to temporarily larger losses in Network Rollout. In addition, Professional Services margin declined as a large number of systems integration transformation projects are in a start-up phase.

Cash flow

We ended the quarter with a negative cash flow from operating activities of SEK -2.4 b. which is a significant improvement compared with a year ago. As cash flow is volatile between quarters it should be viewed on a full-year basis. Our full-year cash conversion target of more than 70% remains.

Focus 2016

When announcing the year-end results 2015, we presented three focus areas for 2016. The first focus area relates to our Core business where we will capture business opportunities in 4G and extend our leadership in 5G. At the Mobile World Congress (MWC) in Barcelona in March, we demonstrated our 5G leadership both technically and commercially through 21 customer contracts as well as industry and academia research cooperation.

The second focus area for 2016 is to improve profitability in the targeted growth areas. Sales in these areas showed growth mainly driven by professional services. We will continue to put stronger focus on software sales and recurring business to increase profitability.

The third focus area for 2016 is to improve cost and efficiency in order to stay competitive across the entire business.

The global cost and efficiency program is progressing according to plan and contributed with savings of SEK 0.5 b. in operating expenses in the quarter. We are confident in our ability to achieve net annual savings of SEK 9 b. during 2017 compared with 2014.

In the quarter, we began to take additional measures beyond the SEK 9 b. cost and efficiency program. Hence, we are adapting our operations to current mobile broadband project volumes, which primarily impacts service delivery. The additional measures are reflected in an increased estimate for the 2016 restructuring charges.

Structural changes

We are today announcing structural changes to further accelerate strategy execution and drive efficiency and growth even harder across the company. We will create a leaner, more fit for purpose, organization to cater to the needs of different customer segments and to faster capture market opportunities. As 5G, the Internet of Things and Cloud drive the next phase of industry development, the time is right to make this change.

The new structure will have five business units and one dedicated customer group for Industry & Society, in line with the company focus on core business, targeted growth areas and cost and efficiency. The changes will make it easier for our customers to do business with us, whether they are operators, media companies or other industries.

We are not satisfied with our overall growth and profitability development over the past years and I am convinced this will make us more competitive and enable us to grow both our company and our earnings.

Hans Vestberg

President and CEO

Net sales

Sales as reported decreased by -2% YoY. Sales, adjusted for comparable units and currency, decreased by -1%.

Segment Networks sales declined slightly YoY. A weak macro-economic environment impacted sales negatively in some emerging markets in the Middle East and Latin America. In addition, sales in Europe were down primarily driven by completion of mobile broadband projects in 2015. Mobile broadband sales in North America grew and the fast pace of 4G deployments in Mainland China continued. IPR licensing revenues grew YoY, mainly driven by recently signed contracts which included certain one-time items. Software sales in IP and core networks declined.

Sales dropped in segment Global Services YoY. This was mainly due to lower Network Rollout activities in Europe and Latin America. Professional Services sales were stable with growth in Consulting and Systems Integration driven by transformation projects. Managed Services sales were stable with 21 contracts signed in the quarter.

Sales in Support Solutions increased YoY due to higher IPR licensing revenues. Software sales in OSS and BSS declined. However, the underlying demand remains strong in OSS and BSS as data growth and increased focus on customer experience drives operators to transform their OSS and BSS solutions.

Group sales as reported decreased by -29% QoQ following a seasonally strong Q4 and lower IPR licensing revenues.

Gross margin

Gross margin declined YoY despite higher IPR licensing revenues and increased capacity sales in North America. Lower margin in Global Services, higher share of mobile broadband coverage projects in parts of Asia and lower software sales in IP and core networks impacted gross margin negatively.

Gross margin declined sequentially, mainly due to lower IPR licensing revenues, higher share of services sales and lower margin in Global Services.

Restructuring charges and cost and efficiency program

Restructuring charges were stable YoY and declined QoQ.

The global cost and efficiency program is progressing according to plan. The target remains, to achieve net annual savings of SEK 9 b. during 2017 relative to 2014.

In the quarter, the company began to take additional measures beyond the cost and efficiency program, impacting primarily service delivery. With current visibility, total restructuring charges for 2016 are estimated to be SEK 4-5 b. compared with previous estimate of SEK 3-4 b.

Operating expenses

Operating expenses decreased to SEK 14.2 (15.6) b. due to increased capitalization of development expenses, savings related to the cost and efficiency program and reduced amortizations of intangible assets. Savings related to the cost and efficiency program were SEK 0.5 b. YoY.

Other operating income and expenses

Other operating income and expenses improved YoY. The revaluation and realization effects of currency hedge contracts were SEK 0.2 b. This is to be compared with SEK -0.1 b. in Q4 2015 and SEK -1.4 b. in Q1 2015.

The main part of the currency hedge contract balance is in USD. The SEK strengthened against the USD between Dec 31, 2015 (SEK/USD rate 8.40) and March 31, 2016 (SEK/USD rate 8.10).

Operating income

Operating income increased YoY, supported by reduced operating expenses, a positive effect from currency hedge contracts and increased IPR licensing revenues. The increase in operating income was partly offset by a lower gross income.

Operating income decreased QoQ due to lower sales, lower IPR licensing revenues and lower gross margin. The decrease in operating income was partly offset by reduced operating expenses.

Financial net

Financial net decreased YoY mainly due to negative revaluation effects of foreign currency. Financial net improved QoQ following lower financial expenses.

Taxes

The tax rate was stable YoY and declined slightly QoQ.

Net income and EPS

Net income and EPS diluted increased YoY following higher operating income and decreased QoQ. EPS diluted was SEK 0.60 (0.40), EPS (Non-IFRS) was SEK 0.87 (0.77).

Employees

The number of employees on March 31, 2016 was 115,300 compared with 116,281 on Dec 31, 2015. Reductions as part of the global cost and efficiency program continued. However, the number of Ericsson services professionals remained unchanged at 66,000 on March 31, 2016.

Modems

The discontinuation of the modems business was completed in Q3 2015.

North America

Sales grew in comparison with a weak first quarter 2015, driven by increased mobile broadband capacity investments to cater to mobile data traffic growth. The need for ICT transformation remains and is creating opportunities in Support Solutions and Professional Services.

Latin America

Mobile broadband investments continued to decline, impacted by local currency depreciation. However, mobile broadband investments in Mexico increased YoY.

Northern Europe and Central Asia

The mobile broadband investments in Russia continued to be weak. Professional Services grew, primarily in the Nordics, where managed services and ICT transformation were the main drivers.

Western and Central Europe

After a period of significant investments in network build-out, operators are moving focus to invest in capacity and quality in order to improve end-user experience. This resulted in a mobile broadband sales decline compared with last year. Professional services sales remained stable.

Mediterranean

Sales declined due to lower investments in mobile broadband infrastructure as major projects were completed. ICT transformation for TV & Media developed favorably.

Middle East

Networks sales declined due to lower infrastructure investments, driven by a challenging macro-economic environment partly linked to lower oil prices.

Sub-Saharan Africa

Mobile broadband sales increased somewhat as certain markets are investing in network modernization and introduction of 4G. Global Services sales decreased, mainly as a result of de-scoping of managed services contracts in a few markets.

India

4G deployments started at the end of 2015, however, overall mobile broadband sales slowed as a result of delays in spectrum auctions and spectrum trading deals between operators. The positive development in Professional Services continued.

North East Asia

4G deployments in Mainland China continued as projected, while core network deployments were slower than a year ago. Japan had a strong quarter mainly due to fiscal year-end investments. In Korea, investments slowed further due to delayed spectrum auctions.

South East Asia and Oceania

Sales growth was primarily driven by mobile broadband expansion in Bangladesh. Professional Services developed favorably, mainly driven by Managed Services. Support Solutions developed positively, driven by OSS and BSS transformation projects, primarily in Australia.

Other

IPR licensing revenues grew YoY, mainly driven by recently signed contracts which included certain one-time items.

Sales as reported decreased by -2% YoY mainly due to lower software sales in IP and core networks as well as lower mobile broadband investments in India following a delayed spectrum auction. In North America, mobile broadband sales grew driven by capacity investments. 4G deployments in Mainland China continued at a fast pace. IPR licensing revenue grew YoY.

Sales growth was strong in some emerging markets such as Mexico and Bangladesh. Other emerging markets, such as Brazil and parts of the Middle East, remained weak, negatively impacted by a weak macro-economic environment. Sales in Europe declined YoY as major projects were completed in 2015. Sales, adjusted for comparable units and currency, decreased by -3% YoY.

Sales decreased QoQ, following a seasonally strong Q4 2015. The decrease was mainly due to lower IPR licensing revenues and lower sales in Mainland China and in North America. Sequentially, the business mix was unchanged, with a large share of hardware sales.

In the quarter, Ericsson announced the acquisition of NodePrime, a software platform development company. The acquisition aims to strengthen Ericsson’s leadership in next- generation software-defined infrastructure.

Deliveries of Ericsson Radio System started at the end of 2015 and will scale to address all regions and ramp to larger volumes during the latter part of this year.

Operating income and margin

Operating income and margin increased YoY mainly due to higher IPR licensing revenues, lower operating expenses, higher mobile broadband capacity sales in North America and a positive effect from currency hedge contracts. This was partly offset by lower software sales in IP and core networks and a higher share of coverage business in emerging markets.

Sequentially, operating income and margin decreased due to lower sales and lower IPR licensing revenues.

The effect of currency hedge contracts was positive at SEK 0.2 (-1.1) b. in the quarter. In Q4 2015, the effect of currency hedge contracts was negative at SEK -0.2 b.

Net sales

Sales as reported decreased -4% YoY, with a decline in Network Rollout due to lower mobile broadband coverage activities in Europe and Latin America. Professional Services sales were stable with growth in Consulting and Systems Integration driven by transformation projects. Managed Services sales were stable with 21 contracts signed in the quarter. Sales, adjusted for comparable units and currency, were flat YoY.

Sales decreased by -25% QoQ following a strong Q4.

Operating income and margin

Operating income decreased YoY in Global Services with reduced profitability in both Network Rollout and Professional Services.

While the underlying profitability in Network Rollout remained stable, lower volumes in mobile broadband rollout led to temporary losses due to under-absorption of resources.

Professional Services margin declined as a large number of systems integration transformation projects are in a start-up phase.

To improve profitability, additional measures are being taken to adapt the service delivery operations to current mobile broadband project volumes.

Net sales

Sales as reported increased 10% YoY, due to higher IPR licensing revenues. Software sales in OSS and BSS declined due to lower software licenses sales in the quarter. The overall transition of business models, from traditional telecom software licenses to recurrent license revenue deals, continues. The underlying demand remains strong in OSS and BSS as data growth and increased focus on customer experience drives operators to transform their OSS and BSS solutions.

TV & Media sales were flat YoY with contribution from the recent acquisition of Envivio, a global leader in software-based video encoding. In the IP transformation of the media industry there is a high level of engagement around next-generation TV and Media platforms. Ericsson is well positioned through the cloud-based video storage and TV platform solutions.

Sales, adjusted for comparable units and currency, increased by 5%.

Sales declined QoQ following a seasonally strong Q4.

Operating income and margin

Operating income and margin improved YoY, mainly driven by increased IPR licensing revenues.

The effect of currency hedge contracts was SEK 0.0 (-0.1) b.

Cash flow from operating activities was SEK -2.4 (-5.9) b. Compared with last year, cash flow from operating activities has improved despite payouts of short-term variable compensation (such payouts were made in the second quarter last year). The improvement is mainly related to stable pace of deployments in Mainland China, capacity sales in North America and higher IPR licensing payments.

Cash outlays of SEK 0.5 b. related to restructuring charges were made in the quarter.

Cash flow from investing activities was impacted by investments in property, plant and equipment of SEK -1.5 b., related to continued investments in Global ICT centers. In addition capitalized development expenses of SEK -1.2 b. were made. Cash flow from financing activities amounted to SEK 0.1 b in the quarter.

Net cash decreased by SEK 4.7 b. in the quarter as a result of increased working capital and investing activities. Total net cash position was SEK 36.5 b.

The definition of Net cash was changed to exclude post-employment benefits. For a definition, see accounting policies page 24. Post-employment benefits were SEK 25.7 b. compared with SEK 22.7 b. Dec 31, 2015, following lower discount rates.

The average maturity of long-term borrowings as of March 31, 2016, was 4.5 years, compared with 5.6 years 12 months earlier.

Debt maturity profile, Parent Company

Income after financial items was SEK 0.4 (1.9) b. The decrease was mainly due to lower recognized dividends from subsidiaries than a year ago.

Major changes in the Parent Company’s financial position for the period; decreased cash, cash equivalents and short-term investments of SEK 4.0 b. and decreased current and non-current liabilities to subsidiaries of SEK 4.9 b. At the end of the quarter, cash, cash equivalents and short-term investments amounted to SEK 44.7 (49.6) b.

The Parent Company has recognized dividends from subsidiaries of SEK 0.2 b. in the quarter.

In accordance with the conditions of the long-term variable compensation program (LTV) for Ericsson employees, 3,065,164 shares from treasury stock were distributed to employees or sold during the first quarter. The holding of treasury stock at March 31, 2016, was 46,302,477 Class B shares.

Ericsson and Adaptix have reached a settlement agreement resolving all of the remaining pending litigations

As disclosed in the 2015 Annual Report, Ericsson is involved in several patent infringement lawsuits against Adaptix Inc. who has filed several suits in the Eastern District of Texas in the US and the Tokyo District Court in Japan, alleging that Ericsson infringe patents assigned to Adaptix.

In January 2016, the Tokyo District Court found that Ericsson did not infringe the asserted patent. As Adaptix did not appeal within the term for appeal to the High Court, the judgment became final. In March 2016, Adaptix and Ericsson reached a settlement agreement, resolving all of the remaining pending litigations.

Patent infringement lawsuit against Micromax

As previously reported, Ericsson filed in 2013 a patent infringement lawsuit in the Delhi High Court against Indian handset company Micromax. As part of its defense, Micromax filed a complaint with the Competition Commission of India (CCI) which the CCI referred to the Director General’s Office for an in-depth investigation. In January 2014, the CCI opened another investigation against Ericsson based on claims made by Intex Technologies (India) Limited. Ericsson has challenged CCI’s jurisdiction in these cases before the Delhi High Court. On March 30, 2016, the Delhi High Court issued an order finding that the CCI has jurisdiction. Ericsson is appealing that order to the Division Bench of the Delhi High Court.

POST-CLOSING EVENTS

Ericsson to acquire NodePrime to accelerate software-defined infrastructure

On April 5, 2016, Ericsson announced its intention to further invest in NodePrime to acquire 100% of its operations and talents based in San Francisco. NodePrime’s platform is already integrated in Ericsson Hyperscale Datacenter System 8000. The platform enables data-driven automated decisions, driving complex, massive-scale configuration. The acquisition is strategic to Ericsson’s cloud offering.

Resolutions at the AGM

On April 13, 2016, Ericsson held its AGM in Stockholm. The proposed dividend of SEK 3.70 per share was approved by the AGM. In accordance with the proposal of the Nomination Committee, Leif Johansson was reelected Chairman of the Board of Directors.

Nora Denzel, Börje Ekholm, Ulf J. Johansson, Kristin Skogen Lund, Sukhinder Singh Cassidy, Hans Vestberg and Jacob Wallenberg were re-elected to the Board and Kristin S. Rinne and Helena Stjernholm were elected new Board members.

In accordance with the Board of Directors’ proposal, the AGM resolved to approve the Guidelines for remuneration to Group management.

Ericsson completed acquisition of Ericpol

On April 20, 2016, Ericsson completed the acquisition of Ericpol’s operations in Poland and Ukraine. Ericpol has been a supplier to Ericsson for over 20 years in the area of software development, during which time Ericsson has been Ericpol’s largest customer. Approximately 2,300 employees in Poland and Ukraine will join Ericsson. The closing follows the announcement on October 15, 2015 that Ericsson was entering into an agreement to purchase Ericpol’s Polish and Ukrainian operations.

Ericsson’s operational and financial risk factors and uncertainties are described in our Annual Report 2015.

Risk factors and uncertainties in focus short-term for the Parent Company and the Ericsson Group include, but are not limited to:

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, April 21, 2016

Telefonaktiebolaget LM Ericsson

Hans Vestberg, President and CEO

Org. Nr 556016-0680

This report has not been reviewed by Telefonaktiebolaget LM Ericsson’s auditors.

Date for next report: July 19, 2016

Ericsson invites media, investors and analysts to a press conference at the Ericsson Studio, Grönlandsgången 4, Stockholm, at 09.00 (CET), April 21, 2016. A financial analyst, investor 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, Chief Marketing and Communications Officer

Phone: +46 10 719 34 72

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

media.relations@ericsson.com

Telefonaktiebolaget LM Ericsson

Org. number: 556016-0680

Torshamnsgatan 21

SE-164 83 Stockholm

Phone: +46 10 719 00 00

www.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.