Ericsson Nikola Tesla d.d.

Annual Report • Apr 28, 2022

ERICSSON NIKOLA TESLA d.d. Krapinska 45 10000 Zagreb

SECURITY: ERNT (ISIN: HRERNTRA0000) LEI: 5299001W91BFWSUOVD63 HOME MEMBER STATE: Republic of Croatia REGULATED MARKET SEGMENT: Regular market of the Zagreb Stock Exchange

Ericsson Nikola Tesla Group

Management Report on the Company and Ericsson Nikola Tesla Group business performance with comments on the financial results for Q1 2022

Highlights:

• Sales revenue: MHRK 526.1
• Gross margin: 15.8%
• Operating profit: MHRK 69.6
• Profit before tax: MHRK 71.0
• Net profit: MHRK 59.7
• Cash flow from operating activities: MHRK -56.1

Gordana Kovačević, the President of Ericsson Nikola Tesla, commented:

"Ericsson Nikola Tesla Group started 2022 with successful implementation of projects and plans to contract new business deals in the domestic and export markets. Although the results for Q1 2022 show a significant growth of almost all business performance indicators, it should be noted that the war in Ukraine has a significant impact on the realization of contracted activities, as well as new business opportunities in Belarus and surrounding markets.

The activities of Ericsson Nikola Tesla Group in Belarus, where in Minsk our daughter company with 25 employees operates, include the expansion of LTE networks for local operators and the informatization of the central health system. In addition, signing of new contracts was also planned in this market. Due to sanctions imposed on Belarus, and consequently the expiration of validity of previously obtained export licenses, we have suspended all activities with the local customers and have submitted requests to Croatian authorities for issuing new export licenses. Their response, and the development of sanctions will significantly affect the future activities and the implementation of those projects. Depending on this, a longer disruption of our business in Belarus is also possible, which will reflect on our plans and results, especially on the planned sales revenue, operating margin and operating cash flow, however, we do not expect it to disrupt Ericsson Nikola Tesla Group's business and financial stability. We have been continuously monitoring the development of the situation, and during Q2 we expect to have an assessment of the actual value impact on the Group's results.

In order to support the people of Ukraine, hit by this war and humanitarian crisis, the company has donated funds, and our employees have shown great empathy and are trying to help by donating money, collecting supplies and volunteering.

Compared to Q1 2021, sales revenue increased by 18%, and all market segments (domestic, export, services to Ericsson) recorded growth. Profitability also recorded significant growth; gross margin increased to 15.8%, while operating profit increased by 53.7% and amounted to MHRK 69.6. Negative cash flow from operating activities is in line with our expectations for Q1, and given the quarterly volatility, cash flow should be observed at the annual level. We have concluded Q1 with a healthy balance sheet and an equity ratio of 37.5%. Cash and cash equivalents, including short-term financial assets, amounted to MHRK 439.8 or 35.7% of the total assets. Business results for Q1 2022 do not include the impact of sanctions on Belarus, however, it is expected that their impact could be seen in the results for Q2.

In the domestic market, in the operator segment, we continued the implementation of the previously contracted activities with strategic partners A1 Hrvatska and Hrvatski Telekom, primarily related to mobile networks modernization, focusing on the implementation of 5G technology. Intensive activities are also ongoing on the build and maintenance of fixed and mobile telecommunication infrastructure of Hrvatski Telekom. The focus is on introducing fiber for end-users, as well as the preparatory activities related to contracts co-financed by European Funds, the purpose of which is to design and build the passive part of FTTH (Fiber To The Home) network for remote, not as densely populated and not as developed areas of the Republic of Croatia. In the segment Digital Society (previously: Industry & Society) the activities continued on the projects regarding e-Health, e-Business and public safety, and new agreements were also signed with Hrvatske ceste, the Ministry of the Interior, and several hospitals.

Despite the challenges in export markets, we have continued a quality cooperation with long-term customers in neighboring countries, operators HT Mostar and BH Telekom (Bosnia and Herzegovina), Ipko (Kosovo), and Crnogorski Telekom (Montenegro) on the modernization and expansion of their networks. I would like to highlight the activities on 5G technology with Crnogorski Telekom, the first operator in Montenegro to put 5G network into commercial operation.

The delivery of services to Ericsson has been continuously increasing. At the R&D Management Business Review meeting, held in March 2022, our Research & Development Center was again highly evaluated by all internal stakeholders, and was recognized as an organization that significantly contributes to the technology leadership of Ericsson Corporation. The possibility to gain new responsibilities was also expressed, which opens an opportunity for us to position even stronger within Ericsson market.

When we talk about global trends, the demand for digitalization of public services and solutions and services based on mobile technologies, which experienced strong growth during the pandemic, continues. Furthermore, there is a growing polarization of global politics and markets worldwide, which has an impact on the positioning of vendors of ICT solutions at the global level, and consequently requires our additional efforts and flexibility. Given the situation, our strong focus is on timely identification and mitigation of risks in order to better cope with the political crisis in certain markets, disruptions in global supply chains, significant increase in prices of energy, raw materials and services, as well as rising labor costs. In 2022, we will intensify investments in 5G and new technologies, Industry 4.0, new markets and customers, digital transformation of Ericsson Nikola Tesla Group and the retention of key people and attracting new talent. Considering the growing needs for experts in areas of new responsibilities we are focused on additional recruiting, and during Q1 our Group employed 78 experts. We are well positioned to continue the implementation of our strategy and I believe that with our technology leadership, strong leadership, motivation

and commitment of employees, as well as the trust of customers and partners, we will mitigate the ahead of us. Having all this in mind, the Management Board and the Supervisory Board proposed to the Annual General Meeting to adopt a dividend proposal of HRK 64 per share, thus showing that, even in this very demanding year, we are taking care of sustainable and responsible business in the interest of all stakeholders."

Financial highlights for the Group:

• Sales revenue amounted to MHRK 526.1 (Q1 2021: MHRK 445.9), up by 18.0% year-over-year. In total sales revenue, the domestic market accounted for 40.3%, services to Ericsson accounted for 49%, while other export markets accounted for 10.7%.
• Sales in the Networks segment amounted to MHRK 301.9 (Q1 2021: MHRK 219.9), Digital Services segment amounted to MHRK 111.5 (Q1 2021: MHRK 118.8), Managed Services segment amounted to MHRK 111.8 (Q1 2021: MHRK 105.4), and Emerging Business and Other amounted to MHRK 0.9 (Q1 2021: MHRK 1.7).
• Gross profit was MHRK 82.9 (Q1 2021: MHRK 63.1), up by 31.3% year-over-year, as a result of business mix (increased revenue in the segment of deliveries to Ericsson and intensified deliveries related to projects of modernization of our customers' networks) and operational and cost efficiency program. Gross margin increased to 15.8% (Q1 2021: 14.2%).
• Selling and administrative expenses slightly increased by 1.2% year-over-year to MHRK 22.1 (Q1 2021: MHRK 21.8). The share of selling and administrative expenses in sales revenue was 4.2% (Q1 2021: 4.9%).
• Operating profit amounted to MHRK 69.6, up by 53.7% year-over-year (Q1 2021: MHRK 45.3) as a result of significant growth of gross profit.
• Gain from financial activities amounted to MHRK 1.5 (Q1 2021: MHRK 3.2), mainly due to lower positive impact of exchange differences.
• Profit before tax increased by 46.6% year-over-year to MHRK 71.0 (Q1 2021: MHRK 48.4).
• Net profit amounted to MHRK 59.7 (Q1 2021: MHRK 40.8), up by 46.1% year-over-year. Return on Sales (ROS) was 11.3% (Q1 2021: 9.2%).
• Cash flow from operating activities amounted to MHRK -56.1 (Q1 2021: MHRK 22.6) and is in line with expectations for Q1. Given the quarterly volatility, cash flow should be observed at the annual level.
• Working Capital Efficiency, expressed in WCD, was 10 days (Q1 2021: 18 days), and excluding services to Ericsson, Working Capital Efficiency was 27 days (Q1 2021: 32 days). The current number of Working Capital Days is the result of finalization of several demanding network modernization projects.
• Cash and cash equivalents, including short term financial assets, as at March 31, 2022, amounted to MHRK 439.8 (35.7% of the total assets), while at the end of 2021, they amounted to MHRK 510.5 (42.4% of the total assets), and is in line with the planned regular activities for the quarter, including the payment of annual bonus.

PRESS INFO

April 28, 2022

• The Group has a solid balance sheet with the total assets of MHRK 1,230.4 as at March 31, 2022, up by 2.2% compared to the end of 2021. The increase of balance sheet is still affected by the increase of workin progress and inventory due to contract execution dynamics as well as the increase in customer receivables. Equity ratio was 37.5% (end of 2021: 33.6%).
• With related parties, the transactions were as follows: sales of products and services amounted to MHRK 257.7 (Q1 2021: MHRK 216.1), while the procurement of products and services amounted to MHRK 52.9 (Q1 2021: MHRK 60.6).
• As at March 31, 2022, balances outstanding with related parties were as follows: receivables amounted to MHRK 113.9 (end of 2021: MHRK 76.8), and payables MHRK 42.6 (end of 2021: MHRK 12.6).

Business situation in major markets

In the domestic market, sales revenue amounted to MHRK 212.1 (Q1 2021: MHRK 178.0), up by 19.2% yearover-year.

The first quarter of 2022 was marked by an intense cooperation with the strategic partner Hrvatski Telekom on preparatory activities related to the contracts co-financed by European Funds, which encompass the design and build of the passive part of FTTH network, and procurement and installation of material.

Based on the existing Management Services Agreement for the construction and maintenance of fixed and mobile telecommunications infrastructure, during last year fiber was introduced for new 100,000 end-users, and the build continues also during 2022.

In addition to build of fiber network, 2022 will be marked by further investments of Hrvatski Telekom in mobile network, with a focus on 5G and FWA (Fixed Wireless Access). FWA is a service that enables fixed access through mobile network, and by applying 5G technology it ensures great speeds and is applied primarily in rural, suburban and areas where there is no fiber.

With the strategic partner A1 Hrvatska, activities intensified related to the expansion of coverage and capacity of radio 5G network as well as the modernization of the existing radio access network and the expansion of capacities on LTE technology. Moreover, the cooperation continued on the realization of the second 5G contract signed in 2021 related to build of convergent 5G core network. At the same time, a successful partnership cooperation continues with the modernization of microwave transmission systems.

In the segment Digital Society, in cooperation with the Slovenian company Realis informacijske tehnologije, as a Bidding Consortium, we have signed a contract with Hrvatske ceste to establish a national access point for multimodal information in transport, as well as to develop a route guide as part of the provision of multimodal information services in transport. Moreover, in consortium with King ICT, we signed a new three-year framework agreement with the Ministry of the Interior of the Republic of Croatia on the maintenance of the emergency call system.

In the e-Health segment, we continued the informatization of the central healthcare IT system with the Ministry of Health. The contracts related to maintenance and upgrade were also signed with several hospitals.

We have continued the delivery of software solutions for the Ministry of Justice and Public Administration and State Geodetic Administration on the Joint Information System of Land Registry and Cadaster (JIS). Moreover, activities are ongoing for the Ministry of Justice and Public Administration on the delivery of IT system to improve the quality of work of public administration, as well as an IT system with the aim to optimize the system of local and regional municipalities. For the Ministry of Culture and Media, the project of digitalization of the cultural heritage of the Republic of Croatia, continues. Furthermore, the implementation of interesting innovative solutions for Industry 4.0 related to e-Environment and smart cities, are ongoing.

In export markets (excluding services to Ericsson) sales revenue amounted to MHRK 56.3 (Q1 2021: MHRK 50.8), up by 10.8% year-over-year.

The political crisis has a negative impact on the realization of contracted business activities of Ericsson Nikola Tesla in Belarus, as well as on new business opportunities. We have been continuously monitoring the development of situation in order to respond and mitigate risks, to the extent possible.

In other export markets, with the operator BH Telecom, we contracted the upgrade of a part of core network and the necessary services of implementation and integration. With the operator HT Mostar, a contract was signed related to management of software and licenses of Ericsson solutions in the network of this operator.

With Crnogorski Telekom, activities continued on the modernization and expansion of telecommunication network. Crnogorski Telekom is the first operator in Montenegro to put 5G network into commercial operation. Dynamic Spectrum Sharing (DSS) technology was implemented at several locations, and intense preparation is ongoing to increase the capacity and to modernize the entire radio network, i.e. coverage of the entire Montenegro with 5G signal.

With the operator Ipko activities are ongoing on the modernization of radio access network and microwave transmission systems, and 5G pilot project was agreed.

In Ericsson market, sales revenue amounted to MHRK 257.7 (Q1 2021: MHRK 217.1), up by 18.7% year-overyear.

In Q1, Ericsson Nikola Tesla's Research & Development Center continued to deliver the planned services. In business segment Networks, the development of main 5G features within Radio, Traffic Control and Compute Digital Silicon is ongoing as planned. Within the business segment Digital Services in the area Mobile Switching Center, activities of automation and virtualization continue. In the area Home Location Register, numerous features were delivered, and customer support requests were successfully realized. Within Cloud, transfer of new responsibilities is successfully finalizing. In the area Unified Data Management, the work on critical feature is progressing as planned. There is a possibility to gain new responsibilities, especially in the area Unified Data Management and Compute & Digital Silicon.

The experts from the Center for Services and Solutions for Networks, in addition to projects for the customers of Ericsson Nikola Tesla Group, are included in the activities of design and optimization and integration of various technologies for Ericsson customers in United Kingdom, Sweden, Norway, Ireland, Germany, Czech Republic, Switzerland, Denmark, Romania, Ukraine, Japan, Saudi Arabia, Malaysia, Pakistan, Oman, Jordan, Indonesia, Bahrain.

The activities also continued on the development and implementation of software tools for management and optimization of mobile networks which are used in the network rollout by many operators worldwide.

Experts from Services and Solutions Center in the field of Digital Services, Media and Operations, in addition to projects for the customers of Ericsson Nikola Tesla Group, were also engaged on projects for Ericsson customers in the United Kingdom, Germany, Sweden, Switzerland, Denmark, Finland, France, Luxembourg, the Netherlands, Ireland, Norway, Italy, Belgium, Slovakia, Hungary, Macedonia, Greece, Serbia, Libya, Australia, etc. These are complex projects of introduction of 5G technology, operational and business support systems, as well as projects of introduction of core solutions in Cloud.

The teams working in the area of IT& Engineering Services, in addition to providing excellent support and achieving excellent results on test environment management projects and IT operations for Ericsson corporation, also had a key role in transformation processes of Ericsson Nikola Tesla Group and provided quality support for a smooth work from home and remote support to customers.

In the segment Digital Society, our experts, in addition to many projects for Ericsson Nikola Tesla's customers, also achieved quality results on projects in IoT platforms and Connected Urban Traffic for Ericsson.

Other information

At the meeting held on April 20, 2022, Ericsson Nikola Tesla Supervisory Board and Management Board made a joint proposal to the Annual General Meeting to adopt a decision regarding the dividend payment of HRK 64 per share.

Ericsson Nikola Tesla Annual General Meeting will be held on June 27, 2022. The shareholders who will have the Company shares registered on their securities account in the Central Depository & Clearing Company on July 01, 2022, are entitled to dividend payment. Ex-dividend date is June 30, 2022.

	Number of shares	% of share capital
Telefonaktiebolaget LM Ericsson	653,473	49.07
PBZ d.d. / Raiffeisen mandatory pension fund, B category	123,514	9.28
Erste & Steiermarkische Bank d.d. / PBZ Croatia osiguranje mandatory pension fund, B category	40,490	3.04
OTP banka d.d. / Erste Plavi mandatory pension fund, B category	30,334	2.28
Raiffeisenbank Austria d.d. / Raiffeisen voluntary pension fund	16,739	1.26
PBZ d.d. / The Bank of New York as Custodian	9,860	0.74
OTP banka d.d. /OTP Index fund – open-end investment fund with public offering	9,474	0.71
PBZ d.d. / custodian client account	9,369	0.70
Ericsson Nikola Tesla d.d.	9,053	0.68
Vuleta Ivica	5,318	0.40
Other shareholders	424,026	31.84

Ericsson Nikola Tesla's major shareholders (as at March 31, 2022)

Share price information in Q1 2022 :

Highest (HRK)	Lowest (HRK)	Last (HRK)	Market cap. (in MHRK)
2,040.00	1,450.00	1,880.00	2,503.5

Ericsson Nikola Tesla d.d. Krapinska 45 Zagreb

OIB: 84214771175

Pursuant to the Articles 462 to 468 of the Capital Market Law (Official Gazette 65/18) the Managing Director of the joint stock company Ericsson Nikola Tesla d.d. Zagreb, Krapinska 45 gives the following:

Statement

of the Management Board responsibility

The accompanying consolidated and non-consolidated financial statements have been prepared in compliance with the International Financial Reporting Standards (IFRS). The financial statements also comply with the provisions of the Croatian Financial Accounting Law valid as of the date of these financial statements.

Unaudited financial statements for the period January 1, 2022 to March 31, 2022 present a true and fair view of the financial position of the Company and the Group and of the financial performance and cash flows in compliance with applicable accounting standards.

Managing Director:

Gordana Kovačević, MSc

For additional information, please contact:

Snježana Bahtijari Orhideja Gjenero Company Communications Director Investor Relations Manager Ericsson Nikola Tesla d.d. Ericsson Nikola Tesla d.d. Krapinska 45 Krapinska 45 HR-10 002 Zagreb HR-10 002 Zagreb Tel.: +385 1 365 4556 Tel.: +385 1 365 4431 Mob.: +385 91 365 4556 Mob.: +385 91 365 4431 Fax: +385 1 365 3156 Fax: +385 1 365 3156 E-mail: snjezana.bahtijari@ericsson.com E-mail: orhideja.gjenero@ericsson.com

E-mail: odnosi.investitori@ericsson.com

For more information about Ericsson Nikola Tesla's business, please visit: http://www.ericsson.hr

Ericsson Nikola Tesla d.d. Izvještaj o sveobuhvatnoj dobiti

za period 31. ožujka 2022. godine

	2022	2021
	HRK '000	HRK '000
Prihodi od prodaje	400.980	331.867
Trošak prodanih proizvoda	-334.254	-280.986 __
Bruto dobit	__ 66.726	50.881
Troškovi prodaje	-9.978	-9.936
Administrativni troškovi	-9.600	-8.880
Ostali poslovni prihodi	9.138	4.187
Dobici od ukidanja/(gubici od) umanjenja vrijednosti financijske imovine	7	-116
Dobitak iz poslovanja	__ 56.293	__ 36.136
Financijski prihodi	__ 2.325	__ 3.590
Financijski rashodi	-930	-161
Financijski prihod/(rashod), neto	__ 1.395	__ 3.429
Dobit prije oporezivanja	__ 57.688	__ 39.565
Porez na dobit	-8.884	-5.872 __
Dobit za godinu	__ 48.804	33.693
Ostala sveobuhvatna dobit	__ -	__ -
Ukupno sveobuhvatna dobit za godinu	__ 48.804	__ 33.693
Zarada po dionici (HRK)	__ 37	__ 25

Ericsson Nikola Tesla d.d.

Izvještaj o financijskom položaju

na dan 31. ožujka 2022. godine

	2022	2021
	HRK '000	HRK '000
IMOVINA
Dugotrajna imovina
Nekretnine, postrojenja i oprema	124.263	129.380
Imovina s pravom korištenja	28.572	29.231
Nematerijalna imovina	979	1.080
Ulaganja u ovisna društva	1.053	1.053
Zajmovi i potraživanja	26.277	21.976
Odgođena porezna imovina	12.555 __	12.555 __
Ukupno dugotrajna imovina	193.699 __	195.275 __
Kratkotrajna imovina
Zalihe	103.111	89.048
Potraživanja od kupaca	141.012	108.484
Potraživanja od povezanih društava	121.075	80.178
Ostala potraživanja	18.105	36.236
Financijska imovina po fer vrijednosti kroz račun dobiti i gubitka	32.349	32.997
Plaćeni troškovi budućeg razdoblja	5.481	6.335
Novac i novčani ekvivalenti	294.091	332.301
Ukupno kratkotrajna imovina	__ 715.224	__ 685.579
UKUPNO IMOVINA	__ 908.923	__ 880.854
KAPITAL I OBVEZE	__	__
Kapital i rezerve
Dionički kapital	133.165	133.165
Vlastite dionice	-16.133	-12.421
Zakonske rezerve	6.658	6.658
Rezerve za vlastite dionice	36.512	36.512
Zadržana dobit	190.056	139.322
Ukupno kapital i rezerve	__ 350.258	__ 303.236
Dugoročne obveze	__	__
Uzeti zajmovi	13.480	16.982
Obveze po najmovima	21.825	21.314
Ostale dugoročne obveze	418	442
Primanja zaposlenih	5.678	6.102
Ukupno dugoročne obveze	__ 41.401	__ 44.840
Kratkoročne obveze	__	__
Obveze prema povezanim društvima	37.438	5.797
Uzeti zajmovi	14.088	14.088
Obveze prema dobavljačima i ostale obveze	119.788	148.676
Obveze za porez na dobit	12.986	4.103
Rezerviranja	10.566	13.307
Odgođeno plaćanje troškova i prihod budućeg razdoblja	94.301	91.365
Ugovorne obveze	221.161	247.309
Obveze po najmovima	6.936 __	8.133
Ukupno kratkoročne obveze	517.264	__ 532.778
Ukupno obveze	__ 558.665	__ 577.618
UKUPNO KAPITAL I OBVEZE	_ 908.923 _	_ 880.854 _

Ericsson Nikola Tesla d.d.

Izvještaj o novčanom toku za period 31. ožujka 2022. godine

	2022	2021
	HRK '000	HRK '000
Novčani tokovi od poslovnih aktivnosti
Dobit prije oporezivanja	57.688	39.565
	_	_
Ispravci: Amortizacija	10.013	11.452
Dobici od ukidanja/(gubici od) umanjenja vrijednosti financijske imovine	-3	-114
Dobitak od prodaje nekretnina, postrojenja i opreme	-137	-40
Neto gubitak/(dobitak) od promjene financijske imovine	648	-188
Prihodi od kamata	-353	-370
Rashodi od kamata	279	159
(Gubici)/dobici od tečajnih razlika, neto	-1.491	-2.659
	1.929	583
Isplate s temelja dionica	_	_
Promjene u obrtnom kapitalu
Potraživanja	-64.996	-38.279
Zalihe	-14.063	-11.725
Rezervacije	-3.165	-4.305
Obveza	-13.409	17.372
	_	_
Novac od poslovnih aktivnosti	-27.060	11.452
	_	_
Plaćene kamate	-281	-452
Neto novac od poslovnih aktivnosti	_ -27.341	_ 11.000
	_	_
Novčani tokovi od investicijskih aktivnosti
Primici od kamata	327	362
Naplata od prodaje nekretnina, postrojenja i opreme	85	15
Kupnja nekretnina, postrojenja i opreme te nematerijalne imovine	-447	-2.005
Depoziti dani financijskim institucijama - neto	723	-
Primici od potpora	-	1.241
Neto promjena financijske imovine po fer vrijednosti kroz račun dobiti i gubitka	-	3
	_	_
Neto novac korišten za investicijske aktivnosti	688	-385
	_	_
Novčani tokovi od financijskih aktivnosti	-5.795	-3.522
Otplata uzetih zajmova	-3.711	-
Kupnja vlastitih dionica	-10	-3
Plaćena dividenda	-2.650	-3.117
Otplata obveze po najmu	_	_
Neto novac korišten u financijskim aktivnostima	-12.165	-6.643
	_	_
Efekt promjene tečaja po novcu i novčanim ekvivalentima	608	1.011 _
Neto povećanje/(smanjenje) novca i novčanih ekvivalenata	_ -38.210	4.983
Novac i novčani ekvivalenti na početku godine	332.301	245.833
	_	_
Novac i novčani ekvivalenti na kraju godine	294.091 _	250.816 _

Annex 1
		ISSUER'S GENERAL DATA
Reporting period:		1.1.2022	31.3.2022 to
Year:		2022
Quarter:		1.
		Quarterly financial statements
egistration number (MB):	03272699		Issuer's home Member HR State code:
Entity's registration number (MBS):	0800002028
Personal identification number (OIB):	84214771175		5299001W91BFWSUOVD63 LEI:
Institution code:	233
	Name of the issuer: ERICSSON NIKOLA TESLA D.D. ZAGREB
Postcode and town:	10000		Zagreb
Street and house number: Krapinska 45
	E-mail address: etk.company@ericsson.com
	Web address: www.ericsson.hr
Number of employees (end of the reporting	2668
Consolidated report:	KN	(KN-not consolidated/KD-consolidated)	KN	KD
Audited:	RN	(RN-not audited/RD-audited)	RN	RD
	Names of subsidiaries (according to IFRS):		Registered office:	MB:
				Yes No
Bookkeeping firm:	No	(Yes/No)	(name of the bookkeeping firm)
	Contact person: Tatjana Ricijaš (only name and surname of the contact person)
	Telephone: +385(0)13653343
	E-mail address: tatjana.ricijas@ericsson.com
	Audit firm: KPMG Croatia d.o.o.
	(name of the audit firm) Certified auditor: Domagoj Hrkać
	(name and surname)

BALANCE SHEET balance as at 31.03.2022

Last day of the ADP Item preceding business code year 1 2 3 4 A) RECEIVABLES FOR SUBSCRIBED CAPITAL UNPAID 001 0 B) FIXED ASSETS (ADP 003+010+020+031+036) 002 195.275.284 I INTANGIBLE ASSETS (ADP 004 to 009) 003 1.079.766 1 Research and development 004 0 2 Concessions, patents, licences, trademarks, software and other 005 1.079.766 979.037 rights 3 Goodwill 006 0 4 Advances for the purchase of intangible assets 007 0 5 Intangible assets in preparation 008 0 6 Other intangible assets 009 0 II TANGIBLE ASSETS (ADP 011 to 019) 010 158.611.407 1 Land 011 15.605.344 15.605.344 2 Buildings 012 81.500.293 3 Plant and equipment 013 46.233.527 41.914.836 4 Tools, working inventory and transportation assets 014 15.009.657 5 Biological assets 015 0 6 Advances for the purchase of tangible assets 016 0 7 Tangible assets in preparation 017 217.724 1.143.528 8 Other tangible assets 018 44.862 9 Investment property 019 0 III FIXED FINANCIAL ASSETS (ADP 021 to 030) 020 17.533.295 1 Investments in holdings (shares) of undertakings within the group 021 1.052.798 1.052.798 2 Investments in other securities of undertakings within the group 022 0 3 Loans, deposits, etc. to undertakings within the group 023 48.531 48.915 4. Investments in holdings (shares) of companies linked by virtue of 024 0 participating interests 5 Investment in other securities of companies linked by virtue of 025 0 participating interests 6 Loans, deposits etc. to companies linked by virtue of participating 026 0 interests 7 Investments in securities 027 0 8 Loans, deposits, etc. given 028 16.431.966 9 Other investments accounted for using the equity method 029 0 10 Other fixed financial assets 030 0 IV RECEIVABLES (ADP 032 to 035) 031 5.495.745 1 Receivables from undertakings within the group 032 0 2 Receivables from companies linked by virtue of participating 033 0 interests 3 Customer receivables 034 5.127.139 4 Other receivables 035 368.606 366.278 V DEFERRED TAX ASSETS 036 12.555.071 C) CURRENT ASSETS (ADP 038+046+053+063) 037 679.244.968 709.743.400 I INVENTORIES (ADP 039 to 045) 038 89.047.839 1 Raw materials and consumables 039 0 2.352.938 2 Work in progress 040 89.047.839 3 Finished goods 041 0 4 Merchandise 042 0 5 Advances for inventories 043 0 6 Fixed assets held for sale 044 0 7 Biological assets 045 0 II RECEIVABLES (ADP 047 to 052) 046 211.581.418 1 Receivables from undertakings within the group 047 5.786.039 8.372.773 2 Receivables from companies linked by virtue of participating 048 74.392.078 interests 3 Customer receivables 049 108.484.202 4 Receivables from employees and members of the undertaking 050 0 0 5 Receivables from government and other institutions 051 4.496.122 6 Other receivables 052 18.422.977 2.381.358 III CURRENT FINANCIAL ASSETS (ADP 054 to 062) 053 46.314.419 1 Investments in holdings (shares) of undertakings within the group 054 0 2 Investments in other securities of undertakings within the group 055 0 3 Loans, deposits, etc. to undertakings within the group 056 0 4 Investments in holdings (shares) of companies linked by virtue of 057 0 participating interests 5 Investment in other securities of companies linked by virtue of 058 0 participating interests 6 Loans, deposits etc. to companies linked by virtue of participating 059 0 interests 7 Investments in securities 060 32.997.449 32.349.299 8 Loans, deposits, etc. given 061 13.316.970 9 Other financial assets 062 0 IV CASH AT BANK AND IN HAND 063 332.301.292 D ) PREPAID EXPENSES AND ACCRUED INCOME 064 6.334.220 5.481.224 E) TOTAL ASSETS (ADP 001+002+037+064) 065 880.854.472 OFF-BALANCE SHEET ITEMS 066 0 LIABILITIES A) CAPITAL AND RESERVES (ADP 068 to 067 303.235.757 I INITIAL (SUBSCRIBED) CAPITAL 068 133.165.000 II CAPITAL RESERVES 069 0 III RESERVES FROM PROFIT (ADP 071+072-073+074+075) 070 30.748.156 1 Legal reserves 071 6.658.250 2 Reserves for treasury shares 072 36.511.836 3 Treasury shares and holdings (deductible item) 073 -12.421.930 4 Statutory reserves 074 0 5 Other reserves 075 0 IV REVALUATION RESERVES 076 0 V FAIR VALUE RESERVES AND OTHER (ADP 078 to 082) 077 0 1 Financial assets at fair value through other comprehensive income 078 0 (i.e. available for sale) 2 Cash flow hedge - effective portion 079 0 3 Hedge of a net investment in a foreign operation - effective portion 080 0 4 Other fair value reserves 081 0 5 Exchange differences arising from the translation of foreign 082 0 operations (consolidation) VI RETAINED PROFIT OR LOSS BROUGHT FORWARD (ADP 084- 083 24.115.606 141.252.017 085) 1 Retained profit 084 24.115.606 2 Loss brought forward 085 0 VII PROFIT OR LOSS FOR THE BUSINESS YEAR (ADP 087-088) 086 115.206.995 1 Profit for the business year 087 115.206.995 2 Loss for the business year 088 0 VIII MINORITY (NON-CONTROLLING) INTEREST 089 0 B) PROVISIONS (ADP 091 to 096) 090 6.102.034 5.678.468 1 Provisions for pensions, termination benefits and similar 091 6.102.034 obligations 2 Provisions for tax liabilities 092 0 3 Provisions for ongoing legal cases 093 0 4 Provisions for renewal of natural resources 094 0 5 Provisions for warranty obligations 095 0 6 Other provisions 096 0 C) LONG-TERM LIABILITIES (ADP 098 to 108) 097 38.738.280 35.722.243 1 Liabilities to undertakings within the group 098 0 2 Liabilities for loans, deposits, etc. of undertakings within the group 099 0 3 Liabilities to companies linked by virtue of participating interests 100 0 4 Liabilities for loans, deposits etc. of companies linked by virtue of 101 0 participating interests 5 Liabilities for loans, deposits etc. 102 0 6 Liabilities to banks and other financial institutions 103 38.295.580 35.304.058 7 Liabilities for advance payments 104 0 8 Liabilities to suppliers 105 0 9 Liabilities for securities 106 0 10 Other long-term liabilities 107 442.700 418.185 11 Deferred tax liability 108 0 D) SHORT-TERM LIABILITIES (ADP 110 to 123) 109 246.632.690 240.096.791 1 Liabilities to undertakings within the group 110 1.821.627 2 Liabilities for loans, deposits, etc. of undertakings within the group 111 0 3 Liabilities to companies linked by virtue of participating interests 112 3.975.002 4 Liabilities for loans, deposits etc. of companies linked by virtue of 113 0 participating interests 5 Liabilities for loans, deposits etc. 114 0 6 Liabilities to banks and other financial institutions 115 22.221.607 7 Liabilities for advance payments 116 52.527.993 8 Liabilities to suppliers 117 14.406.438 9 Liabilities for securities 118 0 10 Liabilities to employees 119 111.900.908 11 Taxes, contributions and similar liabilities 120 26.471.734 12 Liabilities arising from the share in the result 121 0 13 Liabilities arising from fixed assets held for sale 122 0 14 Other short-term liabilities 123 13.307.381 E) ACCRUALS AND DEFERRED INCOME 124 286.145.711	Submitter: ERICSSON NIKOLA TESLA D.D.		in HRK
			At the reporting date of the current period
			0
			193.698.649 979.037
			0
			0
			0 0
			0 152.834.927
			79.613.875
			14.514.427
			0 0
			42.917
			0 16.868.232
			0
			0
			0
			0
			0 15.766.519
			0 0
			10.461.382 0
			0
			10.095.104
			12.555.071
			103.111.015
			100.758.077
			0 0 0
			0
			0 266.593.089
			112.702.115
			141.011.786
			2.125.057
			45.948.267 0
			0
			0
			0
			0
			0
			13.598.968 0
			294.091.029
			908.923.273 0
			350.258.483
			133.165.000 0
			27.037.556 6.658.250
			36.511.836 -16.132.530
			0 0
			0 0
			0
			0 0
			0
			0
			141.252.017
			0 48.803.910
			48.803.910 0
			0
			5.678.468
			0
			0 0
			0 0
			0
			0
			0 0
			0
			0 0
			0
			0
			3.472.717
			0 33.965.243
			0
			0 21.024.175
			38.294.592 43.183.614
			0 52.796.695
			36.793.861 0
			0 10.565.894
F) TOTAL – LIABILITIES (ADP 067+090+097+109+124) 125 880.854.472			277.167.288 908.923.273

126 0 0

G) OFF-BALANCE SHEET ITEMS

for the period 01.01.2022 to 31.03.2022 STATEMENT OF PROFIT OR LOSS

in HRK

Submitter: ERICSSON NIKOLA TESLA D.D.	ADP	Same period of the previous year			Current period
Item	code	Cumulative	Quarter	Cumulative	Quarter
1	2	3	4	5	6
I OPERATING INCOME (ADP 002 to 006)	001	336.053.869	336.053.869	410.125.060	410.125.060
1 Income from sales with undertakings within the group	002	7.951.002	7.951.002	2.186.249	2.186.249
2 Income from sales (outside group)	003	323.916.325	323.916.325	398.793.661	398.793.661
3 Income from the use of own products, goods and services	004	0	0	0	0
4 Other operating income with undertakings within the group	005	460.878	460.878	597.594	597.594
5 Other operating income (outside the group)	006	3.725.664	3.725.664	8.547.556	8.547.556
II OPERATING EXPENSES (ADP 08+009+013+017+018+019+022+029)	007	299.917.650	299.917.650	353.831.964	353.831.964
1 Changes in inventories of work in progress and finished goods	008	-11.724.611	-11.724.611	-11.710.239	-11.710.239
2 Material costs (ADP 010 to 012)	009	108.082.134	108.082.134	141.407.204	141.407.204
a) Costs of raw materials and consumables	010	55.271.507	55.271.507	88.648.949	88.648.949
b) Costs of goods sold	011	0	0	0	0
c) Other external costs	012	52.810.627	52.810.627	52.758.255	52.758.255
3 Staff costs (ADP 014 to 016)	013	182.993.358	182.993.358	198.356.481	198.356.481
a) Net salaries and wages	014	113.219.641	113.219.641	120.101.973	120.101.973
b) Tax and contributions from salary costs	015	50.279.205	50.279.205	56.862.487	56.862.487
c) Contributions on salaries	016	19.494.512	19.494.512	21.392.021	21.392.021
4 Depreciation	017	11.451.765	11.451.765	10.012.561	10.012.561
5 Other costs	018	7.880.517	7.880.517	14.647.053	14.647.053
6 Value adjustments (ADP 020+021)	019	660.079	660.079	0	0
a) fixed assets other than financial assets	020	0	0	0	0
b) current assets other than financial assets	021	660.079	660.079	0	0
7 Provisions (ADP 023 to 028)	022	458.670	458.670	1.118.904	1.118.904
a) Provisions for pensions, termination benefits and similar	023	2.443	2.443	1.062.370	1.062.370
b) Provisions for tax liabilities	024	0	0	0	0
c) Provisions for ongoing legal cases	025	0	0	0	0
d) Provisions for renewal of natural resources	026	0	0	0	0
e) Provisions for warranty obligations	027	456.227	456.227	56.534	56.534
f) Other provisions	028	0	0	0	0
8 Other operating expenses	029	115.738	115.738	0	0
III FINANCIAL INCOME (ADP 031 to 040) 1 Income from investments in holdings (shares) of undertakings within	030	3.589.529	3.589.529	2.324.513	2.324.513
the group 2 Income from investments in holdings (shares) of companies linked by	031	0	0	0	0
virtue of participating interests	032	0	0	0	0
3 Income from other long-term financial investment and loans granted to	033	0	0	0	0
undertakings within the group 4 Other interest income from operations with undertakings within the	034	0	0	0	0
group 5 Exchange rate differences and other financial income from operations with undertakings within the group	035	29.803	29.803	16.765	16.765
6 Income from other long-term financial investments and loans	036	0	0	0	0
7 Other interest income	037	370.293	370.293	353.057	353.057
8 Exchange rate differences and other financial income	038	3.001.670	3.001.670	1.954.691	1.954.691
9 Unrealised gains (income) from financial assets	039	0	0	0	0
10 Other financial income	040	187.763	187.763	0	0
IV FINANCIAL EXPENSES (ADP 042 to 048)	041	160.809	160.809	929.914	929.914
1 Interest expenses and similar expenses with undertakings within the group	042	1.726	1.726	2.557	2.557
2 Exchange rate differences and other expenses from operations with undertakings within the group	043	0	0	0	0
3 Interest expenses and similar expenses 4 Exchange rate differences and other expenses 5 Unrealised losses (expenses) from financial assets	044 045	159.083 0	159.083 0	279.207 0	279.207 0
6 Value adjustments of financial assets (net) 7 Other financial expenses	046 047 048	0 0 0	0 0 0	0 0 648.150	0 0 648.150
V SHARE IN PROFIT FROM UNDERTAKINGS LINKED BY VRITUE OF PARTICIPATING INTERESTS	049	0	0	0	0
VI SHARE IN PROFIT FROM JOINT VENTURES	050	0	0	0	0
VII SHARE IN LOSS OF COMPANIES LINKED BY VIRTUE OF	051	0	0	0	0
PARTICIPATING INTEREST VIII SHARE IN LOSS OF JOINT VENTURES IX TOTAL INCOME (ADP 001+030+049 +050)	052 053	0 339.643.398	0 339.643.398	0 412.449.573	0 412.449.573
X TOTAL EXPENDITURE (ADP 007+041+051 + 052)	054	300.078.459	300.078.459	354.761.878	354.761.878
XI PRE-TAX PROFIT OR LOSS (ADP 053-054)	055	39.564.939	39.564.939	57.687.695	57.687.695
1 Pre-tax profit (ADP 053-054)	056	39.564.939	39.564.939	57.687.695	57.687.695
2 Pre-tax loss (ADP 054-053)	057	0	0	0	0
XII INCOME TAX	058	5.871.689	5.871.689	8.883.785	8.883.785
XIII PROFIT OR LOSS FOR THE PERIOD (ADP 055-059)	059	33.693.250	33.693.250	48.803.910	48.803.910
1 Profit for the period (ADP 055-059)	060	33.693.250	33.693.250	48.803.910	48.803.910
2 Loss for the period (ADP 059-055)	061	0	0	0	0
DISCONTINUED OPERATIONS (to be filled in by undertakings subject to IFRS only with discontinued operations) XIV PRE-TAX PROFIT OR LOSS OF DISCONTINUED OPERATIONS (ADP 063-064)	062	0	0	0	0
1 Pre-tax profit from discontinued operations	063	0	0	0	0
2 Pre-tax loss on discontinued operations	064	0	0	0	0
XV INCOME TAX OF DISCONTINUED OPERATIONS	065	0	0	0	0
1 Discontinued operations profit for the period (ADP 062-065)	066	0	0	0	0
2 Discontinued operations loss for the period (ADP 065-062) TOTAL OPERATIONS (to be filled in only by undertakings subject to IFRS with discontinued operations)	067	0	0	0	0
XVI PRE-TAX PROFIT OR LOSS (ADP 055-+062)	068	0	0	0	0
1 Pre-tax profit (ADP 068)	069	0	0	0	0
2 Pre-tax loss (ADP 068)	070	0	0	0	0
XVII INCOME TAX (ADP 058+065)	071	0	0	0	0
XVIII PROFIT OR LOSS FOR THE PERIOD (ADP 068-071)	072	0	0	0	0
1 Profit for the period (ADP 068-071)	073	0	0	0	0
2 Loss for the period (ADP 071-068)	074	0	0	0	0
APPENDIX to the P&L (to be filled in by undertakings that draw up consolidated annual financial statements) XIX PROFIT OR LOSS FOR THE PERIOD (ADP 076+077)	075	0	0	0	0
1 Attributable to owners of the parent	076	0	0	0	0
2 Attributable to minority (non-controlling) interest	077	0	0	0	0
STATEMENT OF OTHER COMPRHENSIVE INCOME (to be filled in by undertakings subject to IFRS) I PROFIT OR LOSS FOR THE PERIOD	078	33.693.250	33.693.250	48.803.910	48.803.910
II OTHER COMPREHENSIVE INCOME/LOSS BEFORE TAX (ADP 80+ 87)	079	0	0	0	0
III Items that will not be reclassified to profit or loss (ADP 081 to 085) 1 Changes in revaluation reserves of fixed tangible and intangible	080	0	0	0	0
assets	081	0	0	0	0
2 Gains or losses from subsequent measurement of equity	082	0	0	0	0
instruments at fair value through other comprehensive income 3 Fair value changes of financial liabilities at fair value through statement of profit or loss, attributable to changes in their credit risk	083	0	0	0	0
4 Actuarial gains/losses on the defined benefit obligation	084	0	0	0	0
5 Other items that will not be reclassified	085	0	0	0	0
6 Income tax relating to items that will not be reclassified	086	0	0	0	0
IV Items that may be reclassified to profit or loss (ADP 088 to 095)	087	0	0	0	0
1 Exchange rate differences from translation of foreign operations	088	0	0	0	0
2 Gains or losses from subsequent measurement of debt securities at fair value through other comprehensive income 3 Profit or loss arising from effective cash flow hedging	089 090	0 0	0 0	0 0	0 0
4 Profit or loss arising from effective hedge of a net investment in a foreign operation	091	0	0	0	0
5 Share in other comprehensive income/loss of companies linked by virtue of participating interests	092	0	0	0	0
6 Changes in fair value of the time value of option	093	0	0	0	0
7 Changes in fair value of forward elements of forward contracts	094	0	0	0	0
8 Other items that may be reclassified to profit or loss	095	0	0	0	0
9 Income tax relating to items that may be reclassified to profit or loss	096	0	0	0	0
V NET OTHER COMPREHENSIVE INCOME OR LOSS (ADP 080+087- 086 - 096) VI COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (ADP	097	0	0	0	0
078+097) APPENDIX to the Statement on comprehensive income (to be filled in by undertakings that draw up consolidated statements)	098	33.693.250	33.693.250	48.803.910	48.803.910
VI COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (ADP 100+101)	099	33.693.250	33.693.250	48.803.910	48.803.910
1 Attributable to owners of the parent	100	33.693.250	33.693.250	48.803.910	48.803.910
2 Attributable to minority (non-controlling) interest	101	0	0	0	0

STATEMENT OF CASH FLOWS - indirect method for the period 01.01.2022 to 31.03.2022

Submitter: ERICSSON NIKOLA TESLA D.D.			in HRK
Item	ADP code	Same period of the previous year	Current period
1	2	3	4
Cash flow from operating activities
1 Pre-tax profit 2 Adjustments (ADP 003 to 010):	001 002	39.564.939 8.823.191	57.687.695 10.885.621
a) Depreciation	003	11.451.765	10.012.561
b) Gains and losses from sale and value adjustment of fixed tangible and intangible assets	004	-39.856	-136.895
c) Gains and losses from sale and unrealised gains and losses and value
adjustment of financial assets	005	-187.763	648.150
d) Interest and dividend income	006	-370.293	-353.057
e) Interest expenses f) Provisions	007 008	159.083 0	279.207 0
g) Exchange rate differences (unrealised)	009	-2.658.942	-1.490.565
h) Other adjustments for non-cash transactions and unrealised gains and losses	010	469.197	1.926.220
I Cash flow increase or decrease before changes in working capital (ADP 001+002)	011	48.388.130	68.573.316
3 Changes in the working capital (ADP 013 to 016)	012	-36.936.344	-95.633.382
a) Increase or decrease in short-term liabilities	013	17.372.216	-13.409.422
b) Increase or decrease in short-term receivables	014	-38.279.237	-64.995.730
c) Increase or decrease in inventories	015	-11.724.611	-14.063.177
d) Other increase or decrease in working capital	016	-4.304.712	-3.165.053
II Cash from operations (ADP 011+012)	017	11.451.786	-27.060.066
4 Interest paid 5 Income tax paid	018 019	-452.066 0	-281.280
A) NET CASH FLOW FROM OPERATING ACTIVITIES (ADP 017 to 019)	020	10.999.720	-27.341.346
Cash flow from investment activities
1 Cash receipts from sales of fixed tangible and intangible assets	021	15.362	85.074
2 Cash receipts from sales of financial instruments	022	2.663	0
3 Interest received	023	361.734	327.438
4 Dividends received	024	0	0
5 Cash receipts from repayment of loans and deposits	025	0	722.721
6 Other cash receipts from investment activities	026	1.240.573	0
III Total cash receipts from investment activities (ADP 021 to 026)	027	1.620.332	1.135.233
1 Cash payments for the purchase of fixed tangible and intangible assets	028	-2.004.990	-446.816
2 Cash payments for the acquisition of financial instruments	029	0	0
3 Cash payments for loans and deposits for the period	030	0	0
4 Acquisition of a subsidiary, net of cash acquired 5 Other cash payments from investment activities	031	0	0
IV Total cash payments from investment activities (ADP 028 to 032)	032 033	0 -2.004.990	0 -446.816
B) NET CASH FLOW FROM INVESTMENT ACTIVITIES (ADP 027 +033)	034	-384.658	688.417
Cash flow from financing activities
1 Cash receipts from the increase in initial (subscribed) capital	035	0	0
2 Cash receipts from the issue of equity financial instruments and debt financial instruments	036	0	0
3 Cash receipts from credit principals, loans and other borrowings	037	0	0
4 Other cash receipts from financing activities V Total cash receipts from financing activities (ADP 035 to 038)	038 039	0 0	0 0
1 Cash payments for the repayment of credit principals, loans and other borrowings and debt financial instruments	040	-3.522.066	-5.794.592
2 Cash payments for dividends	041	-3.485	-9.891
3 Cash payments for finance lease	042	-3.117.219	-2.649.824
4 Cash payments for the redemption of treasury shares and decrease in	043	0	-3.710.600
initial (subscribed) capital 5 Other cash payments from financing activities	044	0	0
VI Total cash payments from financing activities (ADP 040 to 044)	045	-6.642.770	-12.164.907
C) NET CASH FLOW FROM FINANCING ACTIVITIES (ADP 039 +045)	046	-6.642.770	-12.164.907
1 Unrealised exchange rate differences in respect of cash and cash equivalents	047	1.011.028	607.573
D) NET INCREASE OR DECREASE IN CASH FLOWS (ADP 020+034+046+047)	048	4.983.320	-38.210.263
E) CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD	049	245.833.070	332.301.292
F) CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD(ADP 048+049)	050	250.816.390	294.091.029

for the period 01.01.2022 to 31.03.2022 STATEMENT OF CASH FLOWS - direct method

			in HRK
Submitter: ERICSSON NIKOLA TESLA D.D. Item	ADP code	Same period of the previous year	Current period
1	2	3	4
Cash flow from operating activities
1 Cash receipts from customers	001	0	0
2 Cash receipts from royalties, fees, commissions and other revenue	002	0	0
3 Cash receipts from insurance premiums	003	0	0
4 Cash receipts from tax refund	004	0	0
5 Other cash receipts from operating activities	005	0	0
I Total cash receipts from operating activities (ADP 001 to 005)	006	0	0
1 Cash payments to suppliers	007	0	0
2 Cash payments to employees	008	0	0
3 Cash payments for insurance premiums	009	0	0
4 Interest paid	010	0	0
5 Income tax paid	011	0	0
6 Other cash payments from operating activities	012	0	0
II Total cash payments from operating activities (ADP 007 to 012)	013	0	0
A) NET CASH FLOW FROM OPERATING ACTIVITIES (ADP 006 + 013)	014	0	0
Cash flow from investment activities
1 Cash receipts from sales of fixed tangible and intangible assets	015	0	0
2 Cash receipts from sales of financial instruments	016	0	0
3 Interest received	017	0	0
4 Dividends received	018	0	0
5 Cash receipts from the repayment of loans and deposits	019	0	0
6 Other cash receipts from investment activities	020	0	0
III Total cash receipts from investment activities (ADP 015 to 020)	021	0	0
1 Cash payments for the purchase of fixed tangible and intangible assets	022	0	0
2 Cash payments for the acquisition of financial instruments	023	0	0
3 Cash payments for loans and deposits	024	0	0
4 Acquisition of a subsidiary, net of cash acquired	025	0	0
5 Other cash payments from investment activities	026	0	0
IV Total cash payments from investment activities (ADP 022 to 026)	027	0	0
B) NET CASH FLOW FROM INVESTMENT ACTIVITIES (ADP 021 + 027)	028	0	0
Cash flow from financing activities
1 Cash receipts from the increase in initial (subscribed) capital	029	0	0
2 Cash receipts the from issue of equity financial instruments and debt financial instruments	030	0	0
3 Cash receipts from credit principals, loans and other borrowings 4 Other cash receipts from financing activities	031	0	0
V Total cash receipts from financing activities (ADP 029 to 032)	032 033	0 0	0 0
1 Cash payments for the repayment of credit principals, loans andother	034	0	0
borrowings and debt financial instruments
2 Cash payments for dividends	035	0	0
3 Cash payments for finance lease	036	0	0
4 Cash payments for the redemption of treasury shares and decrease in	037	0	0
initial (subscribed) capital 5 Other cash payments from financing activities
	038	0	0
VI Total cash payments from financing activities (ADP 034 to 038)	039	0	0
C) NET CASH FLOW FROM FINANCING ACTIVITIES (ADP 033 +039)	040	0	0
1 Unrealised exchange rate differences in respect of cash and cash equivalents	041	0	0
D) NET INCREASE OR DECREASE IN CASH FLOWS (ADP 014 + 028 + 040 + 041)	042	0	0
E) CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD	043	0	0
F) CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD (042+043)	044	0	0

STATEMENT OF CHANGES IN EQUITY for the period from 1.1.2022 to	31.3.2022																	in HRK
Item	ADP code	Initial (subscribed) capital		Capital reserves Legal reserves	Reserves for treasury shares	Treasury shares and holdings		Statutory reserves Other reserves	Revaluation reserves	Attributable to owners of the parent Fair value of financial assets through other comprehensive	Cash flow hedge - effective portion	Hedge of a net investment in a foreign operation -	Other fair value reserves	Exchange rate differences from translation of	Retained profit / loss brought	Profit/loss for the business year	Total attributable to owners of the	Minority (non controlling) interest	Total capital and reserves
						(deductible item)				income (available for sale)		effective portion		foreign operations	forward		parent
1	2	3	4	5	6	7	8	9	10	11	12	13	14	15	16	17	18 (3 to 6 - 7 + 8 to 17)	19	20 (18+19)
Previous period 1 Balance on the first day of the previous business year	01	133.165.000		0 6.658.250	13.903.446	506.200		0 0		0	0	0	0 0	0	77.382.005	76.490.881	307.093.382	0	307.093.382
2 Changes in accounting policies 3 Correction of errors	02 03	0 0		0 0 0 0	0 0	0 0		0 0 0 0		0 0	0 0	0 0	0 0 0 0	0 0	0 0	0 0	0 0	0 0	0 0
4 Balance on the first day of the previous business year (restated) (ADP 01 to 03)	04	133.165.000		0 6.658.250	13.903.446	506.200		0 0		0	0	0	0 0	0	77.382.005	76.490.881	307.093.382	0	307.093.382
5 Profit/loss of the period	05	0		0 0	0	0		0 0		0	0	0	0		0	115.206.995	115.206.995	0	115.206.995
6 Exchange rate differences from translation of foreign operations	06	0		0 0	0	0		0 0		0	0	0	0		0	0	0	0	0
7 Changes in revaluation reserves of fixed tangible and intangible assets	07	0		0 0	0	0		0 0		0	0	0	0		0	0	0	0	0
8 Gains or losses from subsequent measurement of financial assets at fair value through other comprehensive income (available for sale)	08	0		0 0	0	0		0 0		0	0	0	0		0	0	0	0	0
9 Profit or loss arising from effective cash flow hedge	09	0		0 0	0	0		0 0		0	0	0	0		0	0	0	0	0
10 Profit or loss arising from effective hedge of a net investment in a foreign operation	10	0		0 0	0	0		0 0		0	0	0	0 0	0	0	0	0	0	0
11 Share in other comprehensive income/loss of companies linked by virtue of participating interests	11	0		0 0	0	0		0 0		0	0	0	0 0	0	0	0	0	0	0
12 Actuarial gains/losses on the defined benefit obligation	12	0		0 0	0	0		0							0	0	0	0	0
13 Other changes in equity unrelated to owners 14 Tax on transactions recognised directly in equity	13 14	0 0		0 0 0 0	0 0	0 0		0 0 0 0		0 0	0 0	0 0	0 0 0 0	0 0	0 0	0 0	0 0	0 0	0 0
15 Decrease in initial (subscribed) capital (other than arising from the pre	15	0		0 0	0	0		0 0		0	0	0	0 0	0	0	0	0	0	0
bankruptcy settlement procedure or from the reinvestment of profit)
16 Decrease in initial (subscribed) capital arising from the pre-bankruptcy settlement procedure	16	0		0 0	0	0		0 0		0	0	0	0 0	0	0	0	0	0	0
17 Decrease in initial (subscribed) capital arising from the reinvestment of profit	17	0		0 0	0	0		0 0		0	0	0	0 0	0	0	0	0	0	0
18 Redemption of treasury shares/holdings	18	0		0 0	25.000.000	14.307.340		0 0		0	0	0	0 0	0	-25.000.000	0	-14.307.340	0	-14.307.340
19 Payments from members/shareholders 20 Payment of share in profit/dividend	19 20	0 0		0 0 0 0	0 0	0 0		0 0 0 0		0 0	0 0	0 0	0 0 0 0	0 0	0 -109.162.418	0 0	0 -109.162.418	0 0	0 -109.162.418
21 Other distributions and payments to members/shareholders 22 Transfer to reserves according to the annual schedule	21	0 0		0 0 0 0	-2.391.610 0	-2.391.610 0		0 0 0 0		0 0	0 0	0 0	0 0 0 0	0 0	4.405.138 76.490.881	0 -76.490.881	4.405.138 0	0 0	4.405.138 0
23 Increase in reserves arising from the pre-bankruptcy settlement procedure	22 23	0		0 0	0	0		0 0		0	0	0	0 0	0	0	0	0	0	0
24 Balance on the last day of the previous business year reporting period (ADP 04 to 23)	24	133.165.000		0 6.658.250	36.511.836	12.421.930		0 0		0	0	0	0 0	0	24.115.606	115.206.995	303.235.757	0	303.235.757
APPENDIX TO THE STATEMENT OF CHANGES IN EQUITY (to be filled in by undertakings that draw up financial statements in accordance with the IFRS) I OTHER COMPREHENSIVE INCOME OF THE PREVIOUS PERIOD, NET OF
TAX (ADP 06 to 14)	25	0		0 0	0	0		0 0		0	0	0	0 0	0	0	0	0	0	0
II COMPREHENSIVE INCOME OR LOSS FOR THE PREVIOUS PERIOD (ADP 05+25)	26	0		0 0	0	0		0 0		0	0	0	0 0	0	0	115.206.995	115.206.995	0	115.206.995
III TRANSACTIONS WITH OWNERS IN THE PREVIOUS PERIOD RECOGNISED DIRECTLY IN EQUITY (ADP 15 to 23)	27	0		0 0	22.608.390	11.915.730		0 0		0	0	0	0 0	0	-53.266.399	-76.490.881	-119.064.620	0	-119.064.620
Current period
1 Balance on the first day of the current business year 2 Changes in accounting policies	28 29	133.165.000 0		0 6.658.250 0 0	36.511.836 0	12.421.930 0		0 0 0 0		0 0	0 0	0 0	0 0 0 0	0 0	139.322.601 0	0 0	303.235.757 0	0 0	303.235.757 0
3 Correction of errors	30	0		0 0	0	0		0 0		0	0	0	0 0	0	0	0	0	0	0
4 Balance on the first day of the current business year (restated) (AOP 28 to 30)	31	133.165.000		0 6.658.250	36.511.836	12.421.930		0 0		0	0	0	0 0	0	139.322.601	0	303.235.757	0	303.235.757
5 Profit/loss of the period 6 Exchange rate differences from translation of foreign operations	32 33	0 0		0 0 0 0	0 0	0 0		0 0 0 0		0 0	0 0	0 0	0 0		0 0	48.803.910 0	48.803.910 0	0 0	48.803.910 0
7 Changes in revaluation reserves of fixed tangible and intangible assets	34	0		0 0	0	0		0 0		0	0	0	0		0	0	0	0	0
8 Gains or losses from subsequent measurement of financial assets at fair value	35	0		0 0	0	0		0 0		0	0	0	0		0	0	0	0	0
through other comprehensive income (available for sale) 9 Profit or loss arising from effective cash flow hedge	36	0		0 0	0	0		0 0		0	0	0	0		0	0	0	0	0
10 Profit or loss arising from effective hedge of a net investment in a foreign	37	0		0 0	0	0		0 0		0	0	0	0 0	0	0	0	0	0	0
operation 11 Share in other comprehensive income/loss of companies linked by virtue of
participating interests 12 Actuarial gains/losses on the defined benefit obligation	38 39	0 0		0 0 0 0	0 0	0 0		0 0 0 0		0 0	0 0	0 0	0 0 0 0	0 0	0 0	0 0	0 0	0 0	0 0
13 Other changes in equity unrelated to owners	40	0		0 0	0	0		0 0		0	0	0	0 0	0	0	0	0	0	0
14 Tax on transactions recognised directly in equity 15 Decrease in initial (subscribed) capital (other than arising from the pre	41 42	0 0		0 0 0 0	0 0	0 0		0 0 0 0		0 0	0 0	0 0	0 0 0 0	0 0	0 0	0 0	0 0	0 0	0 0
bankruptcy settlement procedure or from the reinvestment of profit) 16 Decrease in initial (subscribed) capital arising from the pre-bankruptcy	43	0		0 0	0	0		0 0		0	0	0	0 0	0	0	0	0	0	0
settlement procedure 17 Decrease in initial (subscribed) capital arising from the reinvestment of profit
18 Redemption of treasury shares/holdings	44 45	0 0		0 0 0 0	0 0	0 3.710.600		0 0 0 0		0 0	0 0	0 0	0 0 0 0	0 0	0 0	0 0	0 -3.710.600	0 0	0 -3.710.600
19 Payments from members/shareholders	46	0		0 0	0	0		0 0		0	0	0	0 0	0	0	0	0	0	0
20 Payment of share in profit/dividend 21 Other distributions and payments to members/shareholders	47 48	0 0		0 0 0 0	0 0	0 0		0 0 0 0		0 0	0 0	0 0	0 0 0 0	0 0	0 1.929.416	0 0	0 1.929.416	0 0	0 1.929.416
22 Carryforward per annual plane 23 Increase in reserves arising from the pre-bankruptcy settlement procedure	49 50	0 0		0 0 0 0	0 0	0 0		0 0 0 0		0 0	0 0	0 0	0 0 0 0	0 0	0 0	0 0	0 0	0 0	0 0
24 Balance on the last day of the current business year reporting period (ADP 31 to 50)	51	133.165.000		0 6.658.250	36.511.836	16.132.530		0 0		0	0	0	0 0	0	141.252.017	48.803.910	350.258.483	0	350.258.483
APPENDIX TO THE STATEMENT OF CHANGES IN EQUITY (to be filled in by undertakings that draw up financial statements in accordance with the IFRS)
I OTHER COMPREHENSIVE INCOME FOR THE CURRENT PERIOD, NET OF TAX (ADP 33 to 41)	52	0		0 0	0	0		0 0		0	0	0	0 0	0	0	0	0	0	0
II COMPREHENSIVE INCOME OR LOSS FOR THE CURRENT PERIOD (ADP 32 do 52)	53	0		0 0	0	0		0 0		0	0	0	0 0	0	0	48.803.910	48.803.910	0	48.803.910
III TRANSACTIONS WITH OWNERS IN THE CURRENT PERIOD RECOGNISED DIRECTLY IN EQUITY (ADP 42 to 50)	54	0		0 0	0	3.710.600		0 0		0	0	0	0 0	0	1.929.416	0	-1.781.184	0	-1.781.184

NOTES TO FINANCIAL STATEMENTS - TFI

(drawn up for quarterly reporting periods)

Name of the issuer: ERICSSON NIKOLA TESLA D.D.

Personal identification number (OIB): 84214771175 Reporting period: Q1 2022

extraordinary administration

Notes to financial statements for quarterly periods include:

a) explanation of business events relevant to understanding changes in the statement of financial position and financial performance for the reporting semi-annual period of the issuer with respect to the last business year: information is provided regarding these events and relevant information published in the last annual financial statement is updated (items 15 to 15C IAS 34 - Interim financial

reporting) b) information on the access to the latest annual financial statements, for the purpose of understanding information published in the notes to financial statements drawn up for the semi-annual reporting period

c) a statement explaining that the same accounting policies are applied while drawing up financial statements for the semi-annual reporting period as in the latest annual financial statements or, in the case where the accounting policies have changed, a description of the nature and effect of the changes (item 16.A (a) IAS 34 - Interim financial reporting)

d) a description of the financial performance in the case of the issuer whose business is seasonal (items 37 and 38 IAS 34 - Interim financial reporting)

e) other comments prescribed by IAS 34 - Interim financial reporting f) in the notes to quarterly periods financial statements, in addition to the information stated above, information in respect of the following matters shall be disclosed: 1. undertaking's name, registered office (address), legal form, country of establishment, entity's registration number and, if applicable, the indication whether the undertaking is undergoing liquidation, bankruptcy proceedings, shortened termination proceedings or

1. adopted accounting policies (only an indication of whether there has been a change from the previous period) 3. the total amount of any financial commitments, guarantees or contingencies that are not included in the balance sheet, and an indication of the nature and form of any valuable security which has been provided; any commitments concerning pensions of the

2. the amount and nature of individual items of income or expenditure which are of exceptional size or incidence 5. amounts owed by the undertaking and falling due after more than five years, as well as the total debts of the undertaking covered

undertaking within the group or company linked by virtue of participating interest shall be disclosed separately

by valuable security furnished by the undertaking, specifying the type and form of security 6. average number of employees during the financial year

1. where, in accordance with the regulations, the undertaking capitalised on the cost of salaries in part or in full, information on the amount of the total cost of employees during the year broken down into the amount directly debiting the costs of the period and the amount capitalised on the value of the assets during the period, showing separately the total amount of net salaries and the amount of taxes, contributions from salaries and contributions on salaries 8. where a provision for deferred tax is recognised in the balance sheet, the deferred tax balances at the end of the financial year, and

the movement in those balances during the financial year 9. the name and registered office of each of the undertakings in which the undertaking, either itself or through a person acting in their own name but on the undertaking's behalf, holds a participating interest, showing the proportion of the capital held, the amount of capital and reserves, and the profit or loss for the latest financial year of the undertaking concerned for which financial statements

have been adopted; the information concerning capital and reserves and the profit or loss may be omitted where the undertaking concerned does not publish its balance sheet and is not controlled by another undertaking 10. the number and the nominal value or, in the absence of a nominal value, the accounting par value of the shares subscribed during

the financial year within the limits of the authorised capital 11. the existence of any participation certificates, convertible debentures, warrants, options or similar securities or rights, with an indication of their number and the rights they confer 12. the name, registered office and legal form of each of the undertakings of which the undertaking is a member having unlimited

liability 13. the name and registered office of the undertaking which draws up the consolidated financial statements of the largest group of undertakings of which the undertaking forms part as a controlled group member 14. the name and registered office of the undertaking which draws up the consolidated financial statements of the smallest group of undertakings of which the undertaking forms part as a controlled group member and which is also included in the group of undertakings referred to in point 13

15. the place where copies of the consolidated financial statements referred to in points 13 and 14 may be obtained, provided that they are available

1. the nature and business purpose of the undertaking's arrangements that are not included in the balance sheet and the financial impact on the undertaking of those arrangements, provided that the risks or benefits arising from such arrangements are material and in so far as the disclosure of such risks or benefits is necessary for the purposes of assessing the financial position of the undertaking

2. the nature and the financial effect of material events arising after the balance sheet date which are not reflected in the profit and loss account or balance sheet

a) The financial statements have been prepared in accordance with International Financial Reporting Standards adopted by the European Union (IFRSs), on the historical cost basis, with the exception of financial instruments which are carried at fair value through profit or loss. Policies have Explanation of business events relevant to understanding changes in the statement of financial position and financial performance are published in Press info/Management letter.

b) been consistently applied to all the periods presented.

Last issued annual financial statements are available at ZSE and as well at www.ericsson.hr. www.ericsson.hr/en/reports

c)

d) The interim financial statements for the reporting period are prepared applying the same accounting policies as in the latest annual financial statements presented in the Annual Report.

The issuer does not have sesonal bussines activities. e)

				Managed Services Other Unallocated					Total
				'000 kn	'000 kn						'000 kn
											331.867
51.274	31.198	13.726	13.497	808	218	85	102	-9.600	-8.879		36.136
	'000 kn 283.914	Networks '000 kn 206.818	'000 kn 110.405	Digital Services '000 kn 118.752	5.714	4.555	'000 kn 947	'000 kn 1.742	'000 kn 0	'000 kn 0	31.03.2022 31.03.2021 31.03.2022 31.03.2021 31.03.2022 31.03.2021 31.03.2022 31.03.2021 31.03.2022 31.03.2021 31.03.2022 31.03.2021 '000 kn 400.980 56.293

Transactions with related parties:
	31.3.2022 HRK 000	31.3.2021 HRK 000
Sales	267.199	227.900
Purchases	43.487	58.582
Balances with related parties
	HRK 000	31.3.2022 31.12.2021 HRK 000
Receivable	121.075	80.178
Payable	37.438	5.797

1. Issuer's name, registered office (address), legal form, country of establishment, entity's registration number are disclosed in the sheet General data of this document.

2. Accounting policies have not been changed in relation to previous reporting period.

3. Financial commitments in term of guarantees that are not included in the balance sheet are not material and Management Board believes that

4. possibility of any outflow is remote. The Company has no commitments concerning pensions that are in scope of IAS 19.

In the reporting period there were no individual items of income or expenditure of exceptional size or incidence. 5.

The Company has no debt falling due after more than five years. At the balance sheet date, the Company does not have debts covered by valuable securities/insurance.

1. The average number of employees during the reporting period is 2664 (Q1 2021: 2585). The Company does not categorise employees. 7.

No cost of salaries was capitalised in the reporting period. 8.

Provision for deferred tax is calculated annualy, at balance sheet date 31 December. There were no movement in deferred tax balances during reporting period.

1. The Company has no participating interest.

2. There were no shares subscribed during the financial year within the limits of the authorised capital.

3. 1. The Company has no participation certificates, convertible debentures, warrants, options or similar securities or rights.

4. and 14. The Company has no shares in companies having unlimited liability.

The company Telefonaktiebolaget LM Ericsson (Sweden, Torshamnsgatan 21, SE-164 83 Stockholm) prepares the consolidated financial statements for the larger Group of companies, in which Ericsson Nikola Tesla Group is included as an associate member of Ericsson.

1. Those consolidated reports are available at www.ericsson.com/en/investors/financial-reports.

2. The Company did not have any arrangements that are not included in the balance sheet, where the risks or benefits arising from such arrangements are material.

3. There are no material events arising after the balance sheet date which are not reflected in the profit and loss account or balance sheet.

APPENDIX (Reconciliation of the differences arrising due to structure and classification of the positions in TFI-POD in XLS format compared to classification of the positions in the audited annual report in PDF):

Balance Sheet Within the category Non-current assets in Statement of financial position total amount of Loans and receivables is indicated in TFI-POD form under AOP 023 Loans, deposits, etc. to undertakings within the group, 028 Loans, deposits, etc. given,034 Customer

receivables,035 Other receivables. Within the category Current assets in Statement of financial position total amount of Other receivables, Income tax receivables is

indicated in TFI-POD form under AOP 051 Receivables from government and other institutions,052 Other receivables, 061 Loans, deposits, etc. given.

Within the category Equity in Statement of financial position total amount of Retained earnings is indicated in TFI-POD form under AOP 083 Retaind profit/loss brought forward and 086 Profit or Loss for the business year. Additionally, within the category Non-current liabilities in Statement of Financial position total amount of Borrowings and Lease liabilities are shown

Within the category Current liabilities in Statement of financial position total amount of Trade and other payables and Income tax under AOP 103 Liabilities to bank and other financial institutions

payable is indicated in TFI-POD in AOP 117 Liabilities to suppliers,119 Liabilities to employees,120 Taxes, contributions and similar liabilities.

Within the category Current liabilities in Statement of financial position total amount of Accrued charges and deferred revenue and Contract liabilities is indicated in TFI-POD form under AOP 116 Liabilities for advance payments, 124 Accruals and deferred income.

Also, within the category Current liabilities in Statement of financial position total amount of Provisions is indicated in TFI-POD form under AOP 123 Other short-term liabilities.

Additionally, both categories Borrowings and Lease liabilities in Statement of Financial position are shown under AOP 115 Liabilities to bank and other financial institutions.

P&L

The amount indicated in AOP 006 Other operating income (outside the group), is indicated in Other operating income and Impairment reversal on financial assets in Statement of Comprehensive income (FS form). Cost structure in Statement of comprehensive income (FS form) is according to function and the presentation is different from TFI-POD forms where cost is presented by nature. Total amount of Cost of Sales, Selling, Administrative and Other operating expenses equals to amount of AOP 007 Operating expenses.