Business strategy for transformational leadership Sustainable Business Day 2016-04-18 Business strategy for transformational leadership Sustainable Business Day Elaine Weidman Grunewald, Ericsson Vice President, Sustainability & Corporate Responsibility © Ericsson AB 2016

Ericsson’s Wanted Position Sustainable Business Day 2016-04-18 Ericsson’s Wanted Position Grow faster than the market with best-in-class margins Customer Leading ICT transformation partner Shareholder Shareholder value creator Society Responsible and relevant driver of positive change Employees Attract, develop and retain best talent © Ericsson AB 2016

Sustainable Business Day 2016-04-18 LEADERSHIP COMMITMENT © Ericsson AB 2016

Unprecedented opportunity Sustainable Business Day 2016-04-18 Unprecedented opportunity 90% of the world’s population will have access to mobile communications by 2021 By 2021, 90% of the world’s population will have access to mobile communications and through our advocacy, partnerships and solutions seek to bring the benefits of mobile technology to everyone to create a more inclusive and sustainable world. Source: Ericsson Mobility Report, November 2015 © Ericsson AB 2016

Sustainable Business Day 2016-04-18 Making challenges into opportunities Ericsson solutions map to selected Sustainable Development Goals Sustainable Development Goals End Poverty Education for All Energy & Water for all Economic Growth & Jobs Sustainable Industries & Cities Sustainable consumption Climate change & energy Mobility, Broadband and Cloud Basic access M-Commerce Connect to learn Smart grids Connected Water Pumps ICT transformation M-Commerce Industry & Society Intelligent transport Smart grids Public Safety Digitalized media production & distribution Energy performance Basically every part of our business is relevant. M, BB and cloud, ie ICT infrastructure, cuts accross the delivery of all the goals The things that Ericsson does can solve SD challenges but also lead to business opportunities and customer benefits On this slide I have chosen a few of the SDGs which are mapped to some of our core offerings from all BUs, which have both commercial as well as sustainability viability. Ericsson radio systems – focuses on energy performance and reduced consumption I&S – energy and transport – two of the largest sectors contributing to climate change. With our IS offering in these areas, we will offset 2x as much as we put out. - Mcommerce. Mcomm is seen as one of the most important technologies when it comes to social and financial inclusion. The World Bank just estimated that the world’s unbanked population of 2.5 bn has been reduced by 700 m betweeen 2011 and 2014, thanks largely to mcommerce. Our platform will directly enable this inclusion, and on top of that, we can enable access to water, electricty Thus the very nature of our business is transformative. And just as we can tranform other industries, we can we transform sustainable development challenges, while creating an inclusive, growth economy. Smart Grids Transport solutions Connected Vehicle Cloud Business Opportunities © Ericsson AB 2016

ICT enables an accelerated path to achieve selected SDG goals Sustainable Business Day 2016-04-18 ICT enables an accelerated path to achieve selected SDG goals Education Health … SUSTAINABLE DEVELOPMENT GOALS 2015 2030 100% BAU ICT accelerate ICT is a key driver of progress that is positively impacting every sector in society Source: TBD Ericsson sponsored research with Colombia University © Ericsson AB 2016

The ict enablement effect Sustainable Business Day 2016-04-18 The ict enablement effect 15% Smart transport Smart buildings Smart travel Smart work Smart agriculture and land use Smart services/smart industry Smart grids (incl. smart homes) reduction in global GHG emissions from ICT by 2030 Source: Ericsson Mobility Report © Ericsson AB 2016

Sustainable Business Day 2016-04-18 Reference cases SUSTAINABLE URBANIZATION CONNECTED BUSES Case: Stockholm Royal Seaport. Support Stockholm Royal Seaport to reach its vision for “A world class environmental urban district”. Case: Curitiba’s 1,928 buses. Fleet management system where 3.2 million citizens benefit from electronic ticketing and a range of services. Global expertise on optimal smart grid operation ICT solution, M2M 3G connectivity and eco- system applications © Ericsson AB 2016

Sustainable Business Day 2016-04-18 M-commerce solutions M-Commerce is enabling financial services for the poor Latin America, Africa and Asia Banking the unbanked Slide 8: M-commerce solutions enabling financial Inclusion There are still nearly 2 billion people that do not have access to formal financial services. Our Mcommerce solution is enabling financial services for the poor. One example is Pakistan. Pakistan has an estimated population of 200 million, with approximately 60% living on under $2 a day and only 15 percent reported to have a bank account. Ericsson’s solution is driving crucial financial inclusion efforts by providing access to banking systems. © Ericsson AB 2016

Sustainable Business Day 2016-04-18 © Ericsson AB 2016