Ericsson (ERIC) Status Update summary

Enforcement resolution

• Three-year DOJ DPA resolves criminal FCPA charges; USD 520,650,432 fine, with prosecution deferred and charges to be dismissed at the end of the term subject to compliance.

• Egyptian subsidiary pleaded guilty to Djibouti bribery; DOJ accounting charges cover China, Djibouti, Indonesia, Kuwait and Vietnam.

• SEC civil settlement covers accounting provisions in China, Djibouti, Indonesia, Kuwait, Saudi Arabia and Vietnam, and bribery provisions in Djibouti, China and Saudi Arabia; USD 458.38m sanction plus USD 81.54m interest.

• Combined payments of USD 1.06bn (SEK 10.1bn) covered by the SEK 11.5bn provision taken in Q3 2019.

Compliance and governance

• Historical FCPA breaches ended Q1 2017; inadequate implementation of controls enabled some employees and market executives to conceal illegitimate transactions.

• Three-year independent compliance monitor; continued internal-control and compliance enhancements; resolution marks the end of DOJ and SEC FCPA investigations.

• Reforms include added compliance resources, centralized allegation handling, tiered risk assessment, enhanced third-party due diligence and monitoring, transaction analytics, senior-leader vetting, and refreshed training and awareness campaigns.