Good morning and good afternoon. Welcome to this webcast covering the first quarter of 2021. With me here in the studio in Kista, I have our CEO, Börje Ekholm, and our CFO, Carl Mellander. It's great to see you here, Börje. I guess you've been working quite a lot from home recently. It's great to be here, Peter. As everyone knows, we migrated to work from home more than a year ago, so this is in reality the fifth quarter of reporting virtually. Yep. Of course, it takes a strain on the organization and on a personal note, I must say I'm immensely proud of the team at Ericsson and the way we've stepped up and actually deliver on customer commitments and perform so well in a very challenging environment. I want to just start by acknowledging that a lot of people have worked hard. Exactly. You, Carl, you have actually now closed your fifth quarter remotely. Yes. Which is fantastic. That's true, and not only, as Börje said, have we delivered to customers and so on during this period, but also all the internal processes work really well. Yeah, we closed the books in the same time as usual, in spite of everyone working from home. I share your pride, Börje, actually, in our great people. Yeah. Great. We'll have this presentation and then we will have a Q&A session after the presentations from Börje and Carl. People that will ask questions have to join the conference by phone. First, I will just start by reading this text. During today's presentation, we will be making forward-looking statements. These statements are based on our current expectation and certain planning assumptions, which are subject to risk and uncertainties. The actual results may differ materially due to factors mentioned in today's press release and discussed in this conference call. We encourage you all to read about these risks and uncertainties in our earnings report or as in our annual report for 2020. With that said, I would like to leave the word to you, Börje, to start the webcast. Great. Thank you, Peter, and good morning and welcome, everyone, to this earnings call of the first quarter. Thanks for joining. At the year-end result in January, we could actually then show that we had finally completed our turnaround. What we also saw was that now return on invested capital is actually higher than the cost of capital. That allows us now to focus on growing the business. As we said, we're focused on growing in our core business, call it Networks, Digital Services, as well as Managed Services, but we're also focused on building an enterprise business and driving growth in the enterprise space. During the first quarter, we continued to execute on this strategy. It includes, as always, investing in R&D for technology leadership, and that is really giving us, at the same time, a cost leadership. It's no conflict between technology leadership and cost leadership. They go hand in hand. With that, we're able to strengthen our market positions substantially and gain footprint. Of course, the pandemic has meant a lot, but it has also fast-forwarded digitalization. It's clear we have to recognize that there is substantial human suffering in the wake of the pandemic. Societies have closed down, impacting the economy. Also we see the importance of high-speed internet connectivity and connectivity overall. That's where we come in. We're, of course, very encouraged to see the process here of building out strong coverage in the world where we are a key contributor. We hope that we will see part of the recovery programs around the world being allocated to high-speed mobile broadband, because ultimately that's a faster way to build out coverage. Over the last few years, I also want to say that we have invested quite substantial amounts in deconstraining our supply chain. That gives us increased flexibility. You've seen, for example, the factory we've built in the U.S., we have also focused on increasing the flexibility in other parts of the supply chain. Even though we're in a pandemic with a very tight supply chain, for example, on semiconductors, we've been able to complete all customer deliveries on the committed time frames and according to schedules, as well as running our internal operations. A big kudos to the organization for that. Let me jump into the business. We have continued to consolidate our position as market leader in 5G, with 136 commercial contracts and 85 live networks in 42 countries. What's also encouraging is that organically, FX adjusted, we saw sales grew 10% during the first quarter. If we actually add or adjust for the IPR revenues, organic growth was 14% in our business. That is really driven by a strong growth in Networks that, again, if you would adjust for IPR, actually grew 19% in the quarter, which is fairly significant growth. It's also clear we exited the quarter on a very good footing and feel very good about 2021. We had a strong development the second part of the quarter after a bit softer in the middle. Despite the reduction in IPR revenues that we have guided about, we saw that the gross margin actually improved year-over-year to 42.9%. That is a growth that we saw in all segments. Gross margin strengthened across the board. EBIT margin was up to 10.7%, that is despite significant costs to improve the business, significant costs to grow footprint, as well as a negative currency movement. You know, 2021 is overall an investment year for us, possibly more so in Digital Services. Here, we're increasing the investments we do in R&D to have a competitive 5G cloud-native portfolio. We're making great progress. We see good traction with customers, with many customer wins. What's also clear is that we are incurring costs ahead of revenues. We are seeing R&D expenses increase. We're seeing costs for new product introductions coming up while revenues are not coming until later in the year. I would say at the earliest in Q4, but we're really going to see revenues coming in 2022. This is a year of investments, but it's a year of investments according to the plan we have put out for Digital Services. If we look also on the cash flow, it's very strong. If we adjust again for IPR revenues, which typically are paid, a large part, a majority are paid in the first quarter. If we were to look beyond that, the underlying cash flow improved quite substantially, and it's actually one of the best Q1s we have in our history. We also invest substantial effort in making sure that we have an ethically responsible business and we conduct our business in an ethical way. This is built upon individual accountability as well as integrity. Here we are spending a lot of time in the organization to make sure that we incorporate all lessons learned from the past troubles we've had and make sure we have a state-of-the-art, really great compliance program, but more importantly, that everyone has compliance as an integrated part in the way they behave and in the way we conduct business. Winning business, that's what it's all about. We are going to win business, make sure to play by the rules fair and square, and no debate about that. If we look at the market areas, we saw good growth in four out of five market areas. Northeast Asia, we grew by 80%, which is really driven by the non-Chinese markets, primarily. We look at the next one is Southeast Asia, Oceania, and India, where we saw good growth, driven by 5G in Australia, as well as 4G rollout in India, of a little touch more than 20%. Moving on to Europe, where we had good growth, 15% in Europe, but that was partly offset by more flattish development in Latin America. Of course, Latin America suffers from the pandemic and the macroeconomic effects following the tough situation with the COVID-19. We then look, MANA had a strong development based on continued rollout of 5G. There we see actually good progress also in our cloud-native portfolio and Digital Services. We had a growth of 10%, more than 10% organically. We've been able to also strengthen our market position, which is long-term going to be very attractive for us. We also saw the completion of the C-band auction, so we expect that to result in deployments during the second half of the year. If we look then at our last market area, Middle East and Africa, we saw sales falling by 16%. That is really a effect of the pandemic in Africa impacting the macroeconomic and the spend environment. We're also seeing a slowdown in Middle East following the large investments last year. One of the cornerstones of our strategy has been to grow gross margin, and it's a fundamental indicator of success or progress on the focus strategy. It is encouraging that we continue to see our gross margin strengthen in the business, and we are able to see that strengthening despite lower IPR revenue. As a matter of fact, we fully compensate for Dell'Oro IPR revenue in the gross margin development. By growing gross margin, we can continue to sustain a very high R&D expenses, and we're doing that in order to make sure that our portfolio is competitive from a feature performance point of view, but also cost competitive. Of course, we continue to invest in the 5G rollouts, and that's where we see benefit in our core business. We're also seeing a very strong development, a strong demand for 5G in enterprise applications. We're convinced here that with the 5G cycle, it's going to be a different cycle than the traditional, or more consumer-driven cycle that we've seen in the past. We believe the 5G cycle will be both longer and bigger due to entering a complete new application area with enterprise applications. What's encouraging is the progress we're making on our portfolio, and in Q1, we announced the ultra-lightweight, high-performance Massive MIMO radio portfolio. We also continue to strengthen our position with the Cloud RAN. We are continuing to invest in technology leadership for the benefit of our customers. Again, we have invested quite substantial amounts in making our supply chain resilient, and that pays off right now in having a good delivery performance with our customers and that we're keeping customer commitments. If you look at the R&D investments we're doing in Digital Services, has built a very competitive portfolio, and they will continue at a high level because ultimately we are going to see the cloud-native portfolio be an increasing part of revenues. Again, it's encouraging to see that the overall business, currency adjusted in Digital Services, grew by 3% in the first quarter. Managed Services. We also continue to develop the business, growing gross margin, but we're also continuing the investments in automation and AI in order to develop new solutions for our customers, where we see increasing traction that will, over time, change the margin profile of the business. With that, I'm going to give the word over to our CFO, Carl. Thank you, Börje. Thank you. Good morning again, everyone. Thanks for your time. Let's dive in a bit more to the numbers. You can see that our strategy execution that Börje talked about really show in our financials here in the first quarter. Net sales then came out at SEK 49.8 billion, which is a 10% organic FX-adjusted growth for the group, mainly driven then by Networks with very high growth numbers, as quoted by Börje, of course, based on continued demand for our 5G portfolio. IPR revenues declined by SEK 1.6 billion year-over-year due to these expired contracts that we are negotiating for renewal currently. If we adjust for that, again, the organic growth is actually up to 14% for the group. If you look at the rolling four-quarter basis here, our sales is now tracking at just above SEK 232 billion. Gross margin, 42.9%, which is an improvement of 250 basis points year-over-year, with improvements in all four segments, which is very encouraging indeed. Within both Networks and Digital Services, we saw a good operational leverage contributing to these higher margins, and despite the lower IPR, as we talked about. I think it's always good to look at the rolling four-quarter basis. Börje showed it earlier that where the gross margin comes in at 41.2%, steadily improving since 2017. OpEx was SEK 16 billion, out of which SEK 15.7, as you see here in the table for R&D and SG&A. SG&A was stable year-over-year. R&D saw a certain increase, about SEK 0.4 billion. This is a result of the increased investment we do now in the cloud-native 5G portfolio in Digital Services, mainly. We have now, of course, incorporated the Cradlepoint business into our numbers, so that also added some to the R&D investment line here. These results stand in an EBIT of SEK 5.3 billion. This is 10.7% and 140 basis points improvement year-over-year. I wanted to point out here that we are changing terminology from operating income and operating margin to EBIT and EBIT margin. The main reason why we do that is that we are now introducing EBITDA, as you know, for the long-term target. Speaking of which, EBITDA on a rolling four-quarter basis came out now at 13.3%, compare them with the long-term target of 15%-18%. If we move from P&L and look a bit more at the cash flow, how profits have been turned into cash. You see here the free cash flow before M&A is at SEK 1.6 billion. On a rolling four-quarter basis, again, free cash flow comes out at SEK 21.5 billion, which is then 9.3% of net sales. We can also put that in relation to the long-term target we have set up for free cash flow before M&A as a percentage of sales, which is 9%-12%. We are in that range here on a rolling four-quarter basis. A few words on the net operating assets, or call it working capital development in the quarter. We continue with strict discipline here. What we saw now in the quarter was that trade payables affected cash flow negatively with about SEK 4 billion. This is really the result of a decision we have made to de-risk the supply chain in this situation to buffer up a bit on critical components. It's also an evidence of that we're handling the semiconductor situation and ensuring that we can meet customer delivery deadlines. Inventory increased partly for the same reason, but also because we see rollout projects going on, and we're building, of course, new radios to be delivered to customers in the coming quarters as well. Trade receivables decreased a bit, and that's, I would say, along with the seasonal pattern after very strong sales in the fourth quarter. I really wanted to point it out again what Börje said regarding the free cash flow, that the majority of IPR cash payments, incoming payment, normally happens in the first quarter. Now, of course, having these renewal negotiations ongoing, that cash flow did not come in. If we add that back then, this Q1 is the strongest, at least since Q1 2014, which was actually also a bit out of the ordinary because then we received large license payments incoming in that specific quarter. Net cash then increased by SEK 1.1 billion in the quarter, bringing the net cash position to SEK 43 billion, as you can see here. During the quarter, we repaid a EUR 500 million bond. You can see that in the gross cash. We did this with the cash on hand. Now the maturity profile of our debt portfolio is three years, up from 2.7 years at year-end. To round off, if we take the next slide, just to highlight a few of the planning assumptions. As usual, I want to refer you to the report for the full set of assumptions. If we first of all look at the market that we operate in, Dell'Oro now estimates the RAN market to grow by 3% in 2021, of which China 4%, North America 2%, and Europe by 3%. If we look at our own reality regarding top line to start with, historically, if we look at the three-year average, the seasonality on top line is + 13% from Q1 to Q2. As you know, though, and I really want to point that out, that we can see large variations around this average number in reality. In segment Networks, we want to point out that gross margin can be negatively impacted by a higher share of rollout projects now, which we have in the pipeline for the second quarter. Moreover, when it comes to OpEx, we have a certain seasonality between Q1 and Q2. OpEx typically increase from Q1 to Q2. Also here a bit the word of caution that that can vary quite substantially between the quarters depending on timing. IPR, in Q1, our IPR revenue was SEK 0.8 billion. This volume we can say reflects very well the contract portfolio that we have. We can assume similar in the second quarter as we go along until expired contracts are negotiated or renewed. Lastly, within Digital Services, 2021 will indeed be an investment year with front-loaded cost majority of the revenues from the new 5G core contracts coming late in the year. Now for the second quarter, for these reasons, we expect a similar earnings level second quarter as the first quarter. With that, thanks a lot, I hand back to you, Börje. Thanks, Carl. To conclude, the investments we made in a competitive product portfolio, together with the cost position we have actually created a strong platform to grow in our core business: Networks, Digital Services, and Managed Services. It also creates an opportunity to accelerate our enterprise applications business and developing new solutions for enterprise. As we have said, 2021 is an investment year. We're taking the costs for Cradlepoint acquisition. We're increasing our spend on compliance as well as security. We're also increasing investments in the supply chain. I would also say there is here an element of investments to gain the footprint that we have invested in this quarter, but we are expecting to continue to do that going forward. I would also say at the same time that we're managing on the overall P&L level, but we have, as we've been clear, seen an investment to position ourselves even better for 2022 and beyond in order to reach the long-term targets. What we also see is a very good order intake that we feel positions us very well for the full year as well as for 2022. Of course, that's what we build the business progress on. In enterprise, we're starting to see a good progress on our 5G IoT offering, but we're also seeing that Cradlepoint becomes integrated into our business and seeing the growth opportunities now materializing in the numbers from Cradlepoint. That's encouraging to see. Again, thank you all for joining this morning. With that, I give the word back to you, Peter. Thank you, Börje. We will now start the Q&A session. I would like to welcome the operator. Akasa, do you hear me? Yeah. Ladies and gentlemen, at this time, we will begin the question and answer session. If you'd like to ask a question, please press zero one on your push button phone. If you'd like to decline from the polling process, please press zero two. If you are streaming from the webcast, please mute your webcast audio while asking a question to minimize audio feedback. Let's see here. Do we have anyone on the call for questions? Operator, can you see anyone? Yes. Yeah. Let's see. So I'll- Yes. Present, please. Our first question comes from Predrag Savinovic from Carnegie. Please go ahead. Hi, Predrag. Hi. Thank you. Hi. Hi. Good morning, all. Thank Thank you for taking my questions. Thank you. I hear some audio feedback here. I guess you need to turn off your. Computer computer at the same time, and then I think it will. No, I am unmuted, or muted on the computer. I'll just go ahead and guess. Please do. On seasonality in Q4 to Q1, I think in the last quarter you said, the effect would be less pronounced, now it is more. Given your comments about it on very strong order intake as well, it seems that there's a timing effect. Shouldn't the seasonality effect be less pronounced than from this quarter to the second quarter? My second question is on the margin side, which, both the gross and EBIT margins, they're undoubtedly quite impressive here, up year-over-year despite an IPR decline. Are there any temporary effects, any one-time capacity upgrades or anything that we should be aware of that lifts the margin here? Should we basically expect a higher base level going forward? Thank you. If we start with the second part, we've spent, and you know that, focused on investing in R&D for technology leadership and cost leadership, and that's really the key driver of the gross margin. It's, in that sense, a very clean and straightforward gross margin. Based on the strength of the underlying business, what we see is that we're going to have the rollout Networks like Carl described in Q2 in Networks that will temporarily affect the gross margin in Networks. The journey we are on with continuously strengthening our gross margin, that continues. That is no change and really no major, in that sense, one-time effects or temporarily positives. We have, though, a very big negative, which is we have very limited IPR revenues, as you know. The strong performance is despite that. The reality is our business, it's a bit hard to predict exactly when deliveries happen and deployments happen. What we saw in the first quarter was a bit softer in the middle of the quarter, while it continued at a very good pace in the end of the quarter. We're comfortable with what we're entering into, but we're not going to change the seasonality pattern. I think we're better off just saying what we see rather than trying to be detailed in our guidance. Okay. Predrag, you're good with that? Very good. Very clear. Thank you, guys. Thank you. I think we have the next question coming from Alexander Duval from Goldman Sachs. Hello, Alexander. Oh, yes. Hello, good morning, everyone, many thanks for the question. It looks like the third-party forecast you referenced in your report talk about 3% RAN market growth this year. I was just wondering to what extent you might see potential upside risks to market growth. If so, what could be potential drivers of upside? Just listening to your commentary now, Börje, it looks like you're emphasizing potential for growth. Clearly you've got a very strong order intake. Obviously, part of that's due to share gain. Just curious if there could be some update in terms of the end market. Secondly, a quick one on Japan. Clearly that's an area of strength within Asia. I wondered if you could talk a bit more about how you're positioned on 5G in the country now versus what you saw in the 4G cycle. Should we be looking at that as being prolonged for a few quarters? Many thanks. Thanks, Alexander. Yeah. If we look at the overall market forecast, I would be remiss not to say that we see a very strong market development overall, and probably on the more positive side than what the third party is indicating or Dell'Oro's forecasts are indicating. I think that's fair to say. What we see driving of our growth primarily, though, is share gains. We do believe that we have made substantial gains in market share that started a few years back and actually have continued during the first quarter. We will not stop at that. We will continue to invest in our product portfolio to have the solutions that allow us to gain footprint in the market. We think that's important. That we target to continue. How Dell'Oro we'll revise the market forecast, I really don't know, but I wouldn't be surprised if it's more on the positive side than the negative side, so put it that way. Japan. We have, over the last few years, gradually strengthened our position in Japan, and so far its 5G rollout have started, but we think we have the big bulk ahead of us there. We continue to work with our customers to make sure that they roll out or have the products from us to roll out in the market and build their business. We see positive signs on the Japanese market, I would say. They are one of the frontrunner markets on 5G. I believe we have to be strengthening our position and take advantage of that. You good with that, Alex? Many thanks. Thanks, Alex. That's great. Thank you. We'll move to the next question. It's from Aleksander Peterc from Societe Generale. Hello, Aleksander. Yes, good morning, and thank you for taking the questions, and congratulations on keeping the growth margins at a really healthy level. Forgive me to focus a little bit on the negatives. I'd just like to understand the moving parts here. First on IPR, it does seem that at SEK 800 million per quarter, we're going to be at a run rate for the full year, which is going to be a little bit below what you originally guided. I wanted to If there's any structural change there, or is it just a temporary fall-off? You do mention one licensee being lower, I wonder if that's due to geopolitical reasons or anything like that. Secondly, just on the second quarter, you mentioned a 13% growth quarter-on-quarter with large variations. I'd just like to understand if there's a risk more to the upside or to the downside, or is it symmetrical as you see it right now? Thanks a lot. Yeah. That's a clever way to ask the question to get more guidance, by the way. Let's start with the other one on IPR. The reality is we have contract renegotiation. It's with a couple of different parties. Those we expected to impact, they have also impacted. We also have one licensee that actually have significantly lower volume in the market, and that results in much less royalty revenues for us. Partly, of course, that's an effect of geopolitics, so you can safely assume that. Where that will end up in the end of the year, we don't know, but that's the effect we see. We are saying, as a guidance going forward, look at Q1 as a good indicator for the future right now until we have renegotiated new contract terms with. There are, again, several licensees we're renegotiating with in parallel. How that is exactly going to pan out for the full year, we'll report on that in, I guess, Q1. We're not going to be forced by either timeline or anything else to that extent to close early. We will only agree to terms that maximizes the value for us and not the self-induced timeline. That's why I'm going to leave it open on the timeline question. On the seasonality, I think the best guidance is clearly to look at the history. I think what you hear us saying is that we see a very strong positive momentum in the business. We should recognize we had growth in the first quarter of 10%, so a similar seasonality would give you a fairly healthy growth in the second quarter as well. Of course, we're very encouraged with the order intake, the way we see in the market now. You have to make a bit of a judgment call. We always know it's fluctuations in delivery schedule, deployment schedules, et cetera. We're very optimistic about Q2. Great. Thanks, Alexander, for those questions. We will now move to the next question from Daniel Djurberg at Handelsbanken. Good morning, Daniel. Thanks to stellar network performance in the quarter. I was wondering if you could talk a little bit, you mentioned about the network deployments in Q2 that possibly could hit gross margins if they will come. To me, I read this like potentially large 5G deployment in China that could pick up. My question is really what kind of insight do you currently have on future volumes? Also if you see any risk in the inventory, because I guess you have needed to build inventory on the China deployment already. If you can comment anything on this, would be great. Thank you. The reality is the China market, there was a big tender last year that we entered into and won an increased market share. The next tender will probably come in the next few months. That's a bit unpredictable. With that, you can conclude that we have no insight into how that would look like. These are driven by other market gains, actually, where we see that we are going to have a larger share of rollout contracts in the near term. That's going to impact our Q2 in Networks for sure. We shouldn't exaggerate it, but we're trying to say that that portion is a bit larger than normally. The second question, maybe you should take. Yes. You asked about the risk in inventory. I would say, no, this is business as usual, of course, to assess the inventory in every closing, and we take the measures we have to given the risks that we sit on. Yeah. It's nothing extraordinary. No, nothing extraordinary. Nothing special. We deal with that as we go along. Perfect. Thank you so much, guys. Okay. Great, Daniel. We'll then move to the next question from Frank Maaø at DNB. Morning, Frank. Good morning. Thanks for taking the question. Just wanted to clarify a little bit there on the last question also on China. My question was also relating to mainland China was flat for you year-on-year. You mentioned the tender that will probably come in a couple of months. We don't have any particular insight on when. Exactly, could you repeat what you said about the portion being a bit larger than normally? I didn't fully get that. Do you mean the portion that you expect of the rollout in China? Which is really my question given that further to China, do you see any mix changes on what's going on in terms of the plans the operators have there? I know that there seems to be a certain skew towards 700 MHz rollout in China rather than perhaps that much Massive MIMO this year. Would that impact you and your competitiveness in any particular way in China? Finally, if I may, on the second generation Massive MIMO product that you've mentioned, could you give us some color on that has been received by customers who also are evaluating the Chinese vendors' Massive MIMO products, which were pretty lightweight for the 64 TRX antenna, even that was launched one year ago. If you could give some color on the reception there, please. Thank you. If we start, just to be clear, the rollout in China during the first quarter, we don't see that to increase during the second quarter. We don't know anything about new contracts. With that, you must conclude that it's not China related. It's actually other markets where we see that we will have large rollout, or we know we will have large rollout contracts in the second quarter. The proportion will be slightly higher. You need to think about then the scale of that deployment, and you will probably realize where it is. That is going to impact. The impact is not super large, but it's still going to impact. We can absorb quite a lot in our new cost structure. With the cost structure we have on products as well as on services, we can absorb those large rollout contracts. We want to be clear that we see those coming, and they are going to impact earnings slightly in the near term. Very temporary, but it's a very large size at the same time. Looking at China, how the deployment schedule is going to look like, how the tender structure is going to look like is unclear today. Clearly, our competitiveness in Massive MIMO is good, and the reception on our new generation Massive MIMO is very positive from customers. We're starting to see that gaining increasing momentum, and we will start to see that rolled out or starting to be rolled out in the next few months. We're very encouraged with what we see, and we do see that the customers are putting us at a very good competitiveness with this new generation Massive MIMO. I would say that we clearly have a significant step on weight compared to where we were and compared to where competition was on their former generations. We're very encouraged about that competitiveness. Okay, Frank, thank you for your questions. We'll move to the next question from Sébastien Sztabowicz from Kepler Cheuvreux. Hello, Sébastien. Yeah, hello. Thanks for taking the question. On Digital Services, you are running the business on rather limited level of losses in the first half of the year with the acceleration of the R&D investment in cloud-native 5G portfolio. How should we think about the spending or the level of loss in the back half of the year? Do you see any improvement coming in, or should we assume that the improvement will only come by 2022? Also on the IPR litigation with Samsung, could you remind us a little bit the process and where you are standing into the litigation process with Samsung? Thank you. If we start on the second one with the Samsung process, yes, we have multiple lawsuits going between the companies in several different jurisdictions. Of course, it's very hard to comment on detail of that. I just want to say that we are going to focus on maximizing the value of our IPR portfolio as much as we can and as much as we possibly can. That's what we're doing, and I feel it's in the interest of us as a company to make sure that we don't self-impose deadlines or self-impose restrictions on those both litigation strategies and negotiation strategies. When we have some material developments, i.e., if we would agree, for example, of course, we'll update the market at that point in time. Making predictions here and self-imposing constraints, I think would not be right for our negotiating position. We're going to continue to run it like we do. I apologize, I know it's hard to be on the outside asking for information and getting nothing really. I recognize that, and I feel that pain as well, but I think we have to run the negotiation in the way we do right now in order to keep our ability to negotiate. Digital. Should I take that one? You can take Digital. Also say that. Okay. Sébastien, you saw the EBIT on the Digital Services minus SEK 1.5 billion now in the first quarter. We say that it's going to be on a similar level for the second quarter for the reasons that we talk about with early cost and the revenues in the five-year contracts coming much late in the year. From that, you can deduce that the second half will improve. As you know, the fourth quarter is typically clearly the strongest for Digital Services also because of seasonality, top line being at the highest. Second half, of course, that's our ambition clearly is going to be better than the first half for those reasons. Thank you, Carl, and thank you, Sébastien, for that. We'll move to the next question from Dominik Olszewski at Morgan Stanley. Dominik, can you hear us? Yes. Morning, everyone. Thanks for taking the questions. Maybe a shorter-term question and a longer-term question. In the shorter term, maybe you could just update us on your thoughts around the OpEx trajectory into the rest of the year. Obviously, you've described 2021 as an investment year. Interested in your thoughts there. Also particularly, obviously, we're one quarter further, we have perhaps better visibility on employees returning to office and how that affects your thinking on those costs. Secondly, longer term, there have been some recent reports around challenges for Chinese equipment vendors in serving markets like in India. I'm very curious about your thoughts and plans around growth in India and whether that presents a next market share opportunity for Ericsson. Thanks. Should I take OpEx? Yes. I would say we won't see any major changes. As you know, we are continuing the investments in R&D, and we've been clear on that. We can also look at the seasonality that we talked about in planning assumptions, where OpEx typically comes up in the second quarter. Of course, it's a special year when it comes to work from home and virtually no traveling, except of course in certain customer delivery cases and so on. Of course, there's a big saving going on from that point of view. Let's see how that develops. Nobody really knows how that will develop during the year. As it looks right now, we will, as employees in Ericsson, continue to work from home during the rest of the year, and we will not be resuming traveling as it looks right now. Other than that, no major impact other than the R&D investments that we do and increase in Digital Services. What you may add is that, of course, we need to learn from this period. Yes. Oh, yeah. We can probably save on a lot of the other costs because we can work remotely. Definitely. The ambition is, of course, even when we resume life as normal, the new normal or the now normal, as we say, travel will, of course, be lower than they were pre-pandemic because we have learned so much in how to interact both with customers and internally. As well as most likely other costs like real estate will. They haven't been lower yet, right? No. Now the office space are completely empty, but most likely these will be lower as we return after the pandemic. Exactly. I think when you think about cost structures and cost levels, there are many opportunities and lessons learned from this period that we can actually reduce the run rate going forward. Yeah. That's not happened yet. Yeah. Your India question, I think it's a very interesting question. Without getting into geopolitics, that's a lot of speculation about that, so I'll let others do that part. India is a very big market, clearly, and a market where we have strengthened our position over the last few years, and it's something we continue to do. One of the reasons why we're growing in the market area, Southeast Asia, Oceania, and Australia, is actually India. For us, that is a major focus market because that can give us scale. That is an important area where we prioritize growing our footprint. Great. Dom, thank you for your questions, and then we'll move to the next question from Richard Kramer at Arete. Hi, Richard, can you hear me? Yes. Can you hear me okay? Perfectly. Good morning. Okay. Börje, two basic questions. One, about the structure of the industry, because you've spoken about gaining market share, and the message from the operator is the desire to preserve supplier diversity. With the geopolitical situation you've referenced many times with the limitations on one of your principal competitors, and the introduction of a new large competitor in the U.S., how do you think about your customers looking at your market share and thinking that it needs to be limited, that they want to preserve more than just a few other options in the marketplace, and maybe that's what's driving them to look at new modes of supply like Open RAN? I have a follow-up question about the enterprise business. It feels like it's a bit the tail wagging the dog because it's still a very tiny percentage of your sales. Can you flesh out a little bit more what your plans might be in the next few years to build out an enterprise sales channel and to build out the range of products that you would need to have a complete offer for enterprises beyond selling through the telco channel. Thanks. That's a good question. I think what we need to recognize on the structure of the industry, it's clearly a desire to have multiple choices for our customers, and I think that we are going to see that, and we plan accordingly. I'm also convinced that if we can offer the best solutions for the market, the competitive product portfolio, and cost structure, we can continue to gain footprint as we sit right now. We are never going to be 100% of the market or even remotely close to that. I do think that we actually, even in today's market structure, still have an opportunity to continue to gain. Not across the board, not everywhere, but I think we have a chance to gain footprint based on the portfolio we have. As you say, there are going to be other competitors, and I think that's healthy. I actually believe competition is maybe tough short-term, but actually longer term is good for the industry. I don't see that to be anything different moving forward than it's been in the past. Actually, it's interesting to look at the consolidation in the market that that was clearly the case with other vendors that have reached way beyond 50% market share in many countries. For example, in Europe and around the world. I don't see where that limit really is on market share. I don't think we're there yet, at some point in time, it will be there for sure. Enterprise, I want to just draw your attention to a very simple fact. If you start building out something, it will by nature be small in the beginning. It's kind of unavoidable, unless we would do a very big acquisition, for example. If you think that's tail wagging the dog, yeah. It's unavoidable starting point, unless you do that big acquisition. We're not going to make that. That's not the plan. Our plan is instead to build out use cases and applications, starting with the IoT global connectivity, starting with our dedicated networks that we're investing quite heavily in developing solutions for the market, including the CBRS spectrum in the U.S. We're also seeing with our Wireless WAN offering that we can create a very different network architecture to work from home, for example, or remote working. That has allowed us to launch one which we call Wireless Office, which allow you to have full connectivity as a small and medium-sized company and run all your applications without having a local area network. We think that is a major opportunity for us in enterprises. I would also say our enterprise investments are always serving the benefit of two masters in that sense, i.e., it's going to grow the revenues for the service provider as well. Whether we have to develop a full independent go-to-market to enterprise is a different story. What we want to make sure is that it drives revenues for our service providers. If you look at Cradlepoint, they actually have a channel structure, a channel go-to-market, and that's something we're leveraging also for our dedicated network as well as longer term IoT solutions. We are trying to do a lot of demand creation through the go-to-market organization. Mm-hmm. Thanks, Richard, for those two questions. We actually turn now to Jens Nordström at TV4. Jens, can you hear us? Yes, I can. Thank you very much. Börje Ekholm, you have not been particularly keen on addressing friction between China and the Western world previously, but as we can see, there's a number of cases where this friction generates real sparks at the moment. Does this worry you that Ericsson might increasingly get caught up in this friction with China? There is a lot of geopolitics going on, and it relates of course, to a China-U.S. situation as well. With all of that moving pieces, it clearly can affect us as well. It's no question. Of course, for us, what we can do is to work on our own flexibility, the way we drive the business. That will probably be the only way we can really truly impact these trends. I think it is concerning what we're seeing right now. I want to just say one thing. We're in an ecosystem where we actually have a global standard. It allows us on the call here to travel globally with one device. The reality is what it does even more is it can allow less fortunate countries to have a full connectivity. What we see now is that we have 8 billion subscribers around the world being able to connect on one standard, on one structure, and that's something I think is important that we preserve. Mm-hmm. Thanks. Thank you, Jens. Quick follow-up. China's preparing for new 5G auctions. Is there a risk that Ericsson might be impacted badly in these auctions by being a Swedish company due to diplomatic tension between the two countries? I want to say it very simple. There is always a risk that we're impacted in auctions in different countries. What we are going to do is we're going to work on our competitiveness, our competitive product portfolio, our competitive cost structure, and we are going to try as hard as we can to gain an increasing footprint in the Chinese market. It's an important market for us. Of course, it's a volume question, but actually it's also a leading deployment market. It's an important way for us to learn what technologies are going to be needed for the future. Mm-hmm. Thanks, Jens. Do you feel you have to tread very carefully here? We are running a company, and we're trying to do that to the best of our ability. I focus on running that as well as we can. Of course, the geopolitical situation is a very difficult situation, and we are working on the areas we can impact. I often say, and I think I said that to you before, Jens, that the reality is the world falls down in two buckets, one bucket that you can impact and one bucket that you can't impact. I focus the attention on the part I can impact: our products, our solutions to customers, our cost structure, et cetera. Great. Thank you, Jens, for those questions. We are getting closer to the hour, so we have time for one final question, and that is from Johanna Ahlqvist at SEB. Hello, Johanna. Hello. Thank you for being the final one to ask a question. I think if I may, two ones. The first one relates to working capital. You mentioned, Carl, in the quarter, trade payables impacted by SEK 4 billion to de-risk the supply chain. I'm just wondering if you can give us any guidance what you predict for the full year. Will there be more of those type of actions, or have you taken the ones necessary now? On competition, you mention in the report that you are sort of investing to take market share. I'm just wondering, how is the price competition currently? Because it seems like you're growing pretty nicely in Europe now with market share gains. Do you need to price yourselves in to gain contracts? Is that still the case? Is it the fact that, for instance, Samsung has taken over Huawei's price-pressuring role in a sense, or how is price competition in the market currently? Thank you. I'll take the first one. Thank you, Johanna. On working capital. I would say, of course, you can optimize different parameters here. For us, it's more important to secure that we can deliver to customers on time. That's also, by the way, good for working capital because you get to acceptance milestones on time, and then you can invoice and get paid also. What we have decided to do is to invest so that we can meet those milestones in a sometimes challenging supply situation globally. We saw a bit of that in the first quarter. We will continue to balance this as good as we can. I would say we prioritize, of course, always the customer delivery. Make sure that we have the inventory we need, the components we need on, especially these critical components, so that we can meet those delivery deadlines. That's a fairly easy trade-off at the end of the day. Exactly how it plays out, that depends on, I would say, the rollout pace, the delivery pace over the year. We'll do our best to manage working capital and continue the discipline we have now, I must say, throughout the organization. On competition, I would say over the last several years, it has remained a very competitive industry, and that is really not changed. That's what we base our plans on, what we have seen over the past few years and continue to see. Thanks, Johanna. Okay. Thank you. Before we end this webcast, maybe some final remarks from your side, Börje. Thanks, Peter. Yeah, I would just summarize and say that we continue to execute on our focus strategy. It is to invest in R&D for technology and cost leadership. That allows us to be competitive and grow our core business, and that's what we are going to continue to do. We do believe there will be an inherent growth in the 5G market because 5G goes after both the consumer mobile broadband as well as enterprises. We see that growth to continue a bit longer than normal and a bit faster and bigger than normal. We are very excited about those opportunities. We continue to invest for market share gains that we have done over the past few years, and we continue to see those opportunity on the back of a strong portfolio. We're also very excited about the enterprise opportunities. It's still small in size, but we see here with the offerings we're getting together that we're starting to see a healthy growth rate where we will pursue both organic growth as well as inorganic opportunities. With that, thank you very much for listening in, and thank you very much for your interest. Thank you, Börje, and by that, we will conclude this webcast. Thank you. Thank you. Thank you.