ERIC Ericsson

We continue to win footprint across our business by leveraging our competitive 5G portfolio. The 5G contracts now awarded by all three tier-1 US carriers are the largest in Ericsson’s history. Gross margin² was further strengthened, both sequentially and year over year and reached 44.0% (43.2%). EBIT margin² reached 15.7%, and free cash flow before M&A was SEK 13.0 b. Through continuous measures for global supply chain resilience, we avoided customer impact during the first half of the year. However, late in Q3 we saw some impact on sales from disturbances in the supply chain, and such issues will continue to pose a risk. While we continued to gain share in a growing market, the expected sales reduction in Mainland China, lower variable sales in Managed Services and some supply chain disturbances, led to a negative organic sales¹ development of -1%.

Networks sales¹ were stable YoY, despite considerably lower volumes from Mainland China, reflecting market share gains in other markets. Excluding sales in Mainland China, Networks sales¹ increased by 8% in the third quarter compared to the same period last year. However, late in Q3 we experienced some impact on sales from disturbances in the supply chain, and such issues will continue to pose a risk. Gross margin² improved to 47.8% (46.7%), driven by operational leverage and higher IPR revenues.

Digital Services sales¹ grew by 1% despite a stark sales reduction in Mainland China. Excluding sales in Mainland China, Digital Services sales¹ increased by 6% in the third quarter compared to the same period last year. We are starting to see initial revenues from 5G contracts, driving growth in our Core business. Gross margin² was 42.3% (43.5%), impacted mainly by initial deployment costs in cloud native 5G Core projects. We continue to increase our R&D investments in the 5G portfolio, including Core and orchestration, further strengthening our competitive position. With increasing sales in combination with a higher share of software sales, we expect profitability to gradually improve and over time exceed our original target of EBIT margin² of 10%-12%.

As a consequence of the reduced market share in Mainland China we are planning to resize our sales and delivery organization in the country, starting in Q4, adding to our restructuring charges.

We increased IPR revenues to SEK 2.6 (2.2) b. driven by new agreements, with retroactive impact, confirming our IPR position. With the significant value of our broad patent portfolio and strong position in 5G, reaffirmed by the recent agreement with Samsung, we believe we are well positioned to conclude pending and future patent license renewals. As communicated in the past, the timing of agreement renewals may cause temporary gaps in IPR revenues.

We continue to improve our Ethics and Compliance program in accordance with our strategy and activities based on input from our independent compliance monitor. Such initiatives and activities have enabled the strengthening of an integrity-based culture, compliance governance and anti-corruption internal controls. We are firmly committed to continuously develop and improve in the years to come to ensure a sustainable compliance program.

We continue to strengthen our sustainability work. Supporting our customers by improving energy efficiency in our products as well as reducing our own carbon emissions has been crucial for our success in recent years. In the quarter, we signed a USD 2 b. sustainability-linked revolving credit facility, further integrating our sustainability ambitions by linking our climate action targets to our financial activities.

We continue to see results of our strategy to improve flexibility, reduce sensitivity to business mix and lower the working capital. Free cash flow before M&A amounted to SEK 13.0 (3.9) b. in the third quarter, supported by strong cash collection including some customer pre-payments.

5G for Enterprise provides an exciting opportunity for Ericsson. The acquired Cradlepoint business is developing favorably, contributing to gross margin improvement for the Group in the quarter. Building on the strong foundations of our core business we will continue to invest in the Enterprise business, aiming at Enterprise becoming a sizeable part of Ericsson’s business in a few years.

Stay healthy and well.

Börje Ekholm

President and CEO

Group reported sales were SEK 56.3 (57.5) b. Sales adjusted for comparable units and currency declined by -1% YoY, with growth in two of the five market areas. Sales in Mainland China in Networks and Digital Services declined by SEK -3.6 b. impacting the growth rate adjusted for comparable units and currency by -6%.

IPR licensing revenues increased to SEK 2.6 (2.2) b., driven by patent agreements signed early in the quarter. The agreements include retroactive revenues for unlicensed periods prior to signing.

Networks sales adjusted for comparable units and currency were stable YoY. Sales increased in North America as well as in Europe and Latin America. Sales in Mainland China were SEK -3.2 b. lower YoY, impacting the growth rate adjusted for comparable units and currency by -8%. Networks accounted for 72% (72%) of total sales.

Digital Services sales adjusted for comparable units and currency grew by 1% YoY, with growth in two market areas. Sales in Mainland China were SEK -0.4 b. lower YoY, impacting the growth rate adjusted for comparable units and currency by -5%. Digital Services share of total sales was 15% (15%).

Managed Services sales adjusted for comparable units and currency decreased by -7% YoY, mainly due to reduced variable sales and contract exits mainly in Europe. Managed Services share of total sales was 9% (10%).

Emerging Business and Other sales adjusted for comparable units and currency increased by 4%, primarily in iconectiv. Emerging Business and Other share of total sales was 4% (3%).

Gross margin

Reported gross margin was 44.0% (43.1%). Gross margin excluding restructuring charges increased to 44.0% (43.2%) driven mainly by increased IPR revenues and the acquired Cradlepoint business. Networks gross margin in the quarter was supported by continued strong operational leverage. Gross margin declined in Digital Services YoY due to higher initial deployment costs for the cloud native 5G Core portfolio and in Managed Services due to reduced variable sales.

Sequentially, reported gross margin increased to 44.0% from 43.4%, driven mainly by improved margin in Digital Services due to a higher share of software sales, while Q2 was negatively impacted by a write-down for pre-commercial product investments for the Chinese market. Gross margin was positively impacted by IPR licensing revenues related to patent agreements signed in the quarter.

Research and development (R&D) expenses

R&D expenses amounted to SEK -10.2 (-10.1) b. R&D expenses increased in Digital Services due to increased investments in the cloud native 5G Core portfolio and in Emerging Business and Other as a result of the acquired Cradlepoint business. The increase was partly offset by lower discretionary spending.

Selling and administrative (SG&A) expenses

SG&A expenses were SEK -6.2 (-6.0) b. The increase is mainly due to the acquired Cradlepoint business.

Revaluation of customer financing was SEK 0.1 (0.0) b.

Impairment losses on trade receivables

Impairment losses on trade receivables were SEK 0.0 (0.0) b.

Other operating income and expenses

Other operating income and expenses was SEK 0.5 (0.1) b. The quarter was positively impacted by SEK 0.4 b. through a net of positive fair market revaluation of Ericsson Ventures investments and an impairment write-off.

Share in earnings of JVs and associated companies was SEK -0.1 (-0.1) b.

Restructuring charges

Restructuring charges amounted to SEK 0.0 (-0.3) b.

EBIT

Reported EBIT improved to SEK 8.8 (8.6) b. EBIT excluding restructuring charges was SEK 8.8 (9.0) b. corresponding to an EBIT margin excluding restructuring charges of 15.7% (15.6%). The increase was driven mainly by Networks.

Sequentially, reported EBIT increased to SEK 8.8 b. from SEK 5.8 b., driven by retroactive IPR revenues as well as improved EBIT in Networks, Digital Services and in Emerging Business and Other from increased sales and lower operating expenses.

EBITA

EBITA improved to SEK 9.3 (9.0) b. YoY. EBITA excluding restructuring charges was stable at SEK 9.3 (9.3) b. corresponding to an EBITA margin excluding restructuring charges of 16.5% (16.2%).

Financial income and expenses, net

Reported financial net was SEK -0.6 (0.1) b. The strengthened USD to SEK resulted in a negative currency hedge effect of SEK -0.3 (0.3) b.

Sequentially, financial net decreased by SEK -0.1 b. to SEK -0.6 b. The currency hedge effect was SEK -0.3 b. in the quarter, versus SEK 0.1 b. in the second quarter. The USD strengthened against the SEK between June 30, 2021 (SEK/USD rate 8.51) and September 30, 2021 (SEK/USD rate 8.80).

Taxes

Taxes were SEK -2.5 (-3.2) b. The effective tax rate in Q3 was 30% compared with 27% in Q2 2021, mainly due to the market mix in the quarter.

Net income

Net income improved to SEK 5.8 (5.6) b. and EPS diluted improved to SEK 1.73 (1.61) YoY, driven by improved EBIT.

Employees

The number of employees on September 30, 2021, was 102,203 compared with 101,624 on June 30, 2021. The increase relates mainly to research and development.

Financial highlights, year to date (Jan-Sep) development

Reported sales decreased by -1%. Sales adjusted for comparable units and currency increased by 6% driven primarily by sales in market area North America and in Europe and Latin America. Networks sales adjusted for comparable units and currency increased by 8%, and Digital Services increased by 1%. Sales in Mainland China in Networks and Digital Services declined by SEK -5.8 b., impacting the Group growth rate adjusted for comparable units and currency by -4%, with the same impact in Networks and Digital Services. Sales adjusted for comparable units and currency increased by 9% in Emerging Business and Other, while Managed Services declined by -5%.

Reported gross margin increased to 43.4% (40.2%), driven primarily by strengthened operational leverage in Networks.

Reported EBIT increased to SEK 19.9 (16.8) b. as a result of improved gross income.

Reported EBITA increased to SEK 21.0 (17.7) b. EBITA excluding restructuring charges was SEK 21.0 (19.1) b. corresponding to an EBITA margin excluding restructuring charges of 13.1% (11.7%).

Net income year to date improved to SEK 12.8 (10.4) b. with the improved gross income partly offset by the financial net.

Planning assumptions

Market related

Source: Dell’Oro Mobile RAN 5-Year Forecast, July 2021.

Ericsson related

Net sales

Networks and Digital Services:

In Q4 2020, sales in Mainland China were SEK 4.6 b.

Gross margin

R&D and SG&A expenses

EBIT

Restructuring charges

Currency exposure

Cradlepoint

South East Asia, Oceania and India

Currency adjusted sales decreased by -16% YoY. Networks sales declined YoY due to accelerated rollouts in the second half of 2020, and timing of orders in 2021. Sales declined YoY in Digital Services due to timing of orders and project milestones. Managed Services declined YoY, mainly due to contract renegotiations and timing of variable sales. Reported sales decreased by -17%.

North East Asia

Currency adjusted sales declined by -33% YoY. Sales declined YoY in Networks and Digital Services due to loss of market share in Mainland China. Sales in other parts of the market area increased due to timing of orders and project milestones. Reported sales declined by -35%.

North America

Currency adjusted sales increased by 13% YoY. Sales growth was driven by strong demand for 5G Networks solutions. Reported sales increased by 10%.

Europe and Latin America

Currency adjusted growth was 9% YoY with 5% growth in Europe and 29% in Latin America. Sales in both Networks and Digital Services continued to grow as a result of market share gains, while sales decreased in Managed Services YoY due to earlier decisions on contract exits and rescoping of contracts. Reported sales increased by 8%.

Middle East and Africa

Currency adjusted sales declined by -8% YoY. Sales declined YoY in Networks primarily due to timing of 5G investments in the Middle East. Sales in Africa returned to growth during the quarter. Digital Services sales grew YoY due to strong software upgrades in the African market. Managed Services sales declined YoY due to renegotiations of scope and delays in contract signing. Reported sales decreased by -10%.

Other

IPR licensing revenues increased to SEK 2.6 (2.2) b., driven by patent agreements signed early in the quarter. The agreements include retroactive revenues for unlicensed periods prior to signing.

Sequentially, IPR licensing revenues increased to SEK 2.6 b. from SEK 2.3 b.

Breakdown of sales into products, services and IPR licensing is available in note 3.

Net sales

Sales adjusted for comparable units and currency were stable, with double-digit growth in North America and in Europe and Latin America, and a sales decline in the other market areas mainly due to timing of orders and project milestones. Sales in North East Asia were impacted by a decline of SEK -3.2 b. YoY in Mainland China, impacting the growth rate adjusted for comparable units and currency by -8%. Growth was mainly driven by product sales. Reported sales declined by -3% YoY.

Sequentially, reported sales increased by 2%, driven by growth in North America, Europe and Latin America and in Middle East and Africa, partly offset by decline in South East Asia, Oceania and India and in North East Asia due to timing of orders and project milestones on the back of a seasonally strong second quarter.

Gross margin

Reported gross margin increased to 47.8% (46.5%), supported by operational leverage and higher IPR revenues.

Reported gross margin was stable QoQ with continued operational leverage and a positive impact from IPR revenues.

EBIT

Reported EBIT increased to SEK 9.6 (9.2) b. increasing the EBIT margin to 23.7% (22.0%). The increase was primarily due to higher IPR revenues and seasonally lower operating expenses. Moreover, Q3 2020 was impacted by restructuring charges. EBIT margin excluding restructuring charges increased to 23.7% (22.7%).

Sequentially, reported EBIT increased to SEK 9.6 b. from SEK 8.6 b. EBIT margin increased to 23.7% from 21.7%, due to seasonally higher sales, improved gross income and lower operating expenses.

Net sales rolling four quarters were SEK 166.1 b. and EBIT margin rolling four quarters excluding restructuring charges was 21.7%.

Cash flow from operating activities

Reported cash flow from operating activities was SEK 14.7 (5.3) b. on the back of continued earnings momentum and decrease in operating net assets. Cash flow from operating activities in Q3 2020 was impacted by a payment of SEK -2.0 b. into the Swedish Pension Trust. Operating net assets decreased in the quarter with a positive impact on cash flow of SEK 4.9 b. Key movements include a positive impact of SEK 5.4 b., related to a decrease in trade receivables and contract assets, partly offset by a decrease in contract liabilities, and was a result of solid cash collection in several market areas including some pre-payments from customers. The positive impact was, however, partly offset by a negative impact of SEK -2.1 b. related to the net of inventory and trade payables, due to the strategic build-up of components for resilience in the supply chain within Networks. Taxes paid were SEK -1.3 b.

Free cash flow

Free cash flow before M&A was SEK 13.0 (3.9) b. and, on a rolling 12-month basis, SEK 31.3 b. or 13.6% in relation to sales. Capex net and other investing activities was SEK -1.2 (-0.8) b., related to capitalization of development expenses and investments in test equipment for 5G within Networks and Digital Services. Repayment of lease liabilities in the quarter was stable at SEK -0.6 b., mainly related to property leases. Free cash flow after M&A was SEK 12.9 (3.8) b.

Cash flow from investing and financing activities

Reported cash flow from investing activities was SEK -9.1 (-1.1) b. as a result of purchases of interest-bearing securities. Reported cash flow from financing activities was SEK -2.5 (-0.9) b. including repayment of lease liabilities and mainly attributed to repayment of current borrowings in subsidiaries.

Financial position

Gross cash was SEK 88.2 (78.2) b. and net cash was SEK 55.7 (41.5) b. They increased QoQ by SEK 11.0 b. and SEK 12.0 b. respectively, as a result of the positive free cash flow.

The funding strategy relies on diverse funding sources with bonds as well as bilateral loans. In the quarter, Ericsson renewed its existing USD 2.0 b. revolving credit facility, linked to two of Ericsson’s long-term sustainability

goals. The facility has a five-year tenure with two one-year extension options and is undrawn. The average maturity of long-term borrowings was 3.8 years as of September 30, 2021, an increase from 1.9 years 12 months earlier.

Liabilities for post-employment benefits increased in the quarter, to SEK 34.7 b. from SEK 31.4 b. due to lower interest rates and higher inflation rate in Sweden. The Swedish defined benefit obligation (DBO) was calculated using a discount rate based on the Swedish government bond yield-curve. If the discount rate had been based on Swedish covered mortgage bonds, the liability for post-employment benefits would have been approximately SEK 19.7 b. (SEK 15 b. lower than current DBO).

Return on capital employed (ROCE) was 15.9% (13.5%).

Parent Company

Income after financial items Jan-Sep 2021 was SEK 7.3 (3.7) b.

At the end of the quarter, gross cash (cash, cash equivalents, short-term investments and interest-bearing securities, non-current) amounted to SEK 74.8 (66.3) b.

There was an increase in intercompany lending of SEK 3.5 b. and in intercompany borrowing of SEK 0.6 b. in the third quarter.

In accordance with the conditions of the long-term variable compensation program (LTV) for Ericsson employees, 404,760 shares from treasury stock were distributed or sold to employees during the third quarter. The holding of treasury stock on September 30, 2021 was 4,009,306 Class B shares.

Other information

Ericsson awarded reduced market share by China Mobile

On July 19, 2021, Ericsson announced that the Company had been awarded a 2% market share of China’s 5G network development for 700MHz radio.

In line with earlier market guidance to investors, this is materially lower than the market share previously awarded to the Company for 2.6GHz radio (11%).

China Mobile is the first operator to award under the latest round of central procurement for 5G radio. Given the context and based on the bidding rules, should Ericsson be awarded business in China Unicom and China Telecom Ericsson believes it would be in a similar range as with the China Mobile award.

As previously disclosed by Ericsson, most recently in its Q2 2021 financial report and in its 2020 annual report, the risk of lower market share award follows the decision by the Post and Telecommunication Authority (PTS) to exclude Chinese vendors’ products from the 5G auction in Sweden.

Legal proceedings – update

On October 4, 2021, Ericsson asked the United States District Court for the Eastern District of Texas, Marshall Division, for a declaration that Ericsson has, in its negotiations with Apple, complied with its FRAND commitment and all other applicable laws and policies that would affect the terms of Ericsson’s and Apple’s prospective license.

COVID-19 update

Mass vaccination against the COVID-19 virus during 2021 has enabled the gradual return to normal working arrangements in some geographies.

Ericsson retains cautious optimism that conditions continue to improve but recognize that improvements may be non-linear as the northern hemisphere approaches the winter months. The Company continues to advocate working from home for the majority of employees, travel restrictions for non-essential international travel, and mandatory wearing of face masks in public spaces in work locations, until the end of 2021.

Results continue to reflect the positive response of Ericsson employees to the challenges of the global pandemic. The Company is working to deliver a phased return to work under the Workplace of the Future program which promotes flexibility as well as the promotion of positive health and well-being.

POST-CLOSING EVENTS

AT&T selected Ericsson for expansion of 5G Network and C-band spectrum build

On October 11, 2021, building on more than 20 years of collaboration, Ericsson and AT&T announced a five-year agreement to accelerate the expansion of AT&T 5G. This deal helps support deployment of the service provider’s recently acquired C-band spectrum and the launch of 5G Standalone (SA). AT&T is tapping into Ericsson’s leading network expertise as the company works toward its 5G network goals.

Ericsson will help AT&T to bring its 5G network to more consumers, businesses and first responders across key industries – including 5G use cases in sports and venues, entertainment, travel and transportation, business transformation and public safety.

AT&T’s network evolution is made possible in part by the Ericsson Radio System portfolio, which includes the Advanced Antenna System, Advanced RAN Coordination and Carrier Aggregation technologies.

These deployments will support future network enhancements like Cloud RAN, which offers communications services providers increased flexibility, faster delivery of services and greater scalability in networks.

The solution supports a centralized RAN architecture enabled by Ericsson Fronthaul Gateway, a new technology that will enable a more efficient transport of the fronthaul interface by converting it to packet (eCPRI).

Ericsson Cloud RAN is a cloud-native software solution handling compute functionality in the Radio Access Network (RAN). It complements the existing technologies in the RAN domain and allows for the adoption of leading practices to become a foundation for openness, enabling innovation in 5G.

Ericsson Cloud RAN will enable communications service providers to seamlessly evolve towards cloud-native technologies and open network architectures to meet the demand for more deployment flexibility.

Investor Update 2021 postponed

Investor Update, planned for November 9, will be postponed and expanded into a Capital Markets Day in 2022. 2021 is a year with focus on continued R&D investments and market share expansion preparing for 2022 and long-term growth and value creation. The aim with the Capital Market Day in 2022 is to host a full-day, in-person event with the entire executive management present, specifying the building blocks towards the long-term targets and elaborating on Enterprise driven growth.

Risk factors

Ericsson is exposed to a number of risks in its activities. To stimulate identification and support cross-functional treatment within the Ericsson Group, risks are grouped in a number of categories, including for example risks relating to technology, IPR, compliance, project execution, operations, products and services, treasury and accounting, the geopolitical environment, M&A, cyber security and occupational health and safety.

Ericsson’s risk management is embedded into strategy development and operational processes and is a part of the Ericsson Group Management System to ensure accountability, effectiveness, efficiency, business continuity and compliance. Risks are defined in both a short-term and long-term perspective and are related to long-term objectives as per the strategic direction as well as to short-term objectives.

Risk factors and uncertainties of relevance to Ericsson are described in the Annual Report 2020. Updates to these risk factors and uncertainties observed by Ericsson that are deemed of short-term relevance include, but are not limited to, the following:

Pandemics, such as for example the one caused by the novel Coronavirus, COVID-19, could severely impact our local and global operations

The COVID-19 pandemic has caused challenges and risks relating to travel and lockdowns limiting access to sites, transportation and logistics and impacting the flow of goods, as well as having major parts of the workforce working remotely. With an increasing infection rate in some of Ericsson’s markets, there is an increased risk for negative impact and disturbances in the Company’s operations, including in network deployments in those markets, impacting corresponding revenues. As previously mentioned, disturbances from the pandemic may have material adverse effects on our business and financial position.

Ericsson relies on a limited number of suppliers of components, production capacity and R&D and IT services, which exposes the Company to supply disruptions and cost increases.

As stated in the Risk Factors in the 2020 Annual Report, section 1.13, Ericsson relies on a limited number of suppliers of components, which exposes the Company to supply disruptions and cost increases. The combination of this with the effects from the COVID-19 pandemic on the component industry, especially on semi-conductors, is causing challenges to the capabilities to fully deliver according to customer demands, which may cause delays in deliveries and reduced sales. Such disruptions and cost increases may negatively affect the Ericsson business, operating results and financial condition.

Stockholm, October 19, 2021

Telefonaktiebolaget LM Ericsson

Börje Ekholm, President and CEO

Org. No. 556016-0680

Date for next report: January 25, 2022

Media and analyst briefing

Ericsson invites media, investors and analysts to a conference call and live video webcast at 9:00 AM CEST on October 19, 2021.

Link to the webcast, dial-in to audio conference, supporting material and replay will be available at:

www.ericsson.com/investors and

www.ericsson.com/newsroom

For further information, please contact:

Carl Mellander, Senior Vice President, Chief Financial Officer

Phone: +46 72 583 88 70

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

media.relations@ericsson.com

Stella Medlicott, Senior Vice President, Chief Marketing and Communications Officer

Phone: +46 73 095 65 39

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

Investors

Peter Nyquist, Vice President,

Head of Investor Relations

Phone: +46 70 575 29 06

E-mail: peter.nyquist@ericsson.com

Lena Häggblom, Director,

Investor Relations

Phone: +46 72 593 27 78

E-mail: lena.haggblom@ericsson.com

Stefan Jelvin, Director,

Investor Relations

Phone: +46 70 986 02 27

E-mail: stefan.jelvin@ericsson.com

Media

Kristoffer Edshage, Director of Corporate Media

Phone: +46 72 220 44 46

E-mail: media.relations@ericsson.com

Corporate Communications

Phone: +46 10 719 69 92

E-mail: media.relations@ericsson.com

This This report 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, the following:

The words “believe,” “expect,” “foresee,” “anticipate,” “assume,” “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 forward-looking statements.

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”, and in “Risk Factors” in the Annual Report 2020.

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 report, 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 regulation.

Introduction

We have reviewed the condensed interim financial information (interim report) of Telefonaktiebolaget LM Ericsson (publ.) as of September 30, 2021, and the nine months period then ended. The board of directors and the CEO are responsible for the preparation and presentation of the 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 International Standard on Review Engagements ISRE 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 would make us aware of all significant matters that might be identified in an audit. Therefore, the conclusion expressed based on a review does not give the same level of assurance as a conclusion expressed based on an audit.

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 19, 2021

Deloitte AB

Thomas Strömberg Authorized Public Accountant