Ericsson Nikola Tesla d.d.

Annual Report • Jul 22, 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 H1 2022

Highlights:

• Sales revenue: MHRK 1,062.3
• Gross margin: 9.7%
• Operating profit: MHRK 76.9
• Profit before tax: MHRK 80.0
• Net profit: MHRK 68.4
• Cash flow from operating activities: MHRK 20.5

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

"In H1 2022, we continued to implement many projects in the domestic and export markets and achieved sales revenue of more than one billion HRK. We had a solid business performance despite the extremely turbulent political environment, inflation, increase in the prices of labor, energy and materials, disruptions in supply, as well as lack of STEM experts. The war in Ukraine has a significant impact on our business in Belarus, as well as in the surrounding markets. Due to the sanctions imposed by EU, the termination of eHealth implementation contract for the Republic of Belarus was initiated. We have stopped the signing of the already agreed new contracts and postponed the implementation of the previously signed multi-year contracts with telecom operators in Belarus, the further implementation of which will depend on the development of the situation with sanctions, that we continuously monitor.

The domestic market was marked by the continuation of investment of the leading operators in the network infrastructure. Accordingly, in the observed period we have continued with the deliveries related to 5G network and fiber-optic network for Hrvatski Telekom, which recently once again received the umlaut 'Best in Test' awards for the best and fastest fixed and mobile network. The results of umlaut analysis were certainly positively impacted by the quality implementation of projects, in which our experts have participated. With our strategic partner A1 Hrvatska, we have continued the cooperation on the expansion of coverage and capacity of radio 5G network, expansion of capacity of 4G network, and modernization of convergent 5G core network.

Furthermore, as part of a pilot project, in cooperation with the company Odašiljači i veze, we have implemented a private 5G network at a factory in the Šibenik-Knin County, based on Ericsson Private 5G solution. This solution represents a fully independent 5G network of high performance, high level of security, with remote control and automation capabilities. One of the possible applications of 5G private networks is the automated monitoring of warehouse conditions using drones, and the factory is provided with reliable wireless mobile technology for various types of devices.

In the Digital Society segment, activities on e-health, e-business and public safety projects continued, and new contracts were also signed. Based on the two-year frame agreement with the State Geodetic Administration and the Ministry of Justice and Public Administration, which we announced in June 2021, we have contracted the continuation of cooperation related to support services for the application system of the Joint Information System of Land Registry and Cadaster (JIS).

As regards innovative solutions, our Research and Development (R&D) Center, as well as our expert centers for services and solutions have been recognized for excellence by Ericsson corporation and have been continuously given new responsibilities, thus significantly contributing to the Group's business results. We are proud that Ericsson Nikola Tesla Group has more than 1,800 employees, who work on software design, out of total of more than 3,500 employees and there is a potential for further growth.

With the aim of further development of the company, in addition to the expansion of the existing offices in Zagreb, Split and Osijek, we opened a new office in Rijeka at the beginning of June. In this way, we optimize our business activities and ensure the necessary professional capacities, and we make it possible for our experts to stay in Croatia and continuously develop their skills by working in the dynamic ICT industry, on the latest technologies and interesting projects in cooperation with top experts from all over the world. By opening our offices in other Croatian cities, we additionally boost economic and technological development, and as a socially responsible entrepreneur we contribute to the equal development of Croatia.

In export markets, despite numerous challenges, we have continued a quality cooperation with long-term customers in the neighboring markets on mobile networks modernization. I would like to highlight a contract with HT Mostar on providing support for the maintenance of fixed and mobile network until the end of 2023, further activities on the modernization of Crnogorski Telekom's mobile network which include the increase of capacities, expansion and coverage of the entire Montenegro with 5G signal, as well as putting into operation the first 5G pilot network in Kosovo with the operator IPKO.

In H1 2022, more than 130 employees joined our Group, mainly highly educated STEM experts. Engagement in our company enables ICT experts to positively impact the life and work of millions of people through their daily work. Therefore, I believe that also in the future, STEM experts will recognize Ericsson Nikola Tesla as an employer of their choice.

Compared to H1 2021, sales revenue increased by 4.7% at Group level, mainly due to sales increase in services to Ericsson. Gross margin decreased to 9.7%, due to sanctions against Belarus, increase of salaries as a response to inflationary pressure and rising prices of energy, raw materials and materials, while operating profit decreased by 35.6%, amounting to MHRK 76.9. A positive cash flow from operating activities was realized, amounting to MHRK 20.5, which is in line with the expectations, considering the market environment. We have concluded Q2 with a healthy balance sheet, with equity ratio of 30.9%. At the end of Q2, cash and cash equivalents, including short-term financial assets, amounted to MHRK 515.1 (41.0% of the total assets).

In order to mitigate risks, we continuously monitor the situation in all markets and business segments and take appropriate measures. Diversification of business enables us to have a stable performance and to mitigate the negative impacts of crisis by increasing our experts' engagement within the global organization in research and development as well as other high-value services, and we actively work on the development of existing and new business segments.

In 2022, we expect the demand for digital solutions to continue, which opens new opportunity for the company's business development. Therefore, regardless of all the challenges, we shall continue to invest in 5G and new technologies, Industry 4.0/5.0, new solutions, markets and customers, development of our employees' knowledge and skills, digital transformation of Ericsson Nikola Tesla Group, and open new jobs in order to secure the company's long-term development. We are also preparing for our additional quality contribution to the full development of Digital Croatia in the upcoming decade."

Financial highlights for the Group:

• Sales revenue amounted to MHRK 1,062.3 (H1 2021: MHRK 1,014.2), up by 4.7% year-over-year, mainly due to increase in services to Ericsson. In total sales revenue, the domestic market accounted for 41.5%, services to Ericsson accounted for 47.5%, while other export markets accounted for 11.0%. In the company's revenue, total export accounted for 58.5%.
• Sales in the Networks segment amounted to MHRK 521.3 (H1 2021: MHRK 468.3), Digital Services segment amounted to MHRK 286.6 (H1 2021: MHRK 282.3), Managed Services segment amounted to MHRK 252.7 (H1 2021: MHRK 260.1), and Emerging Business and Other amounted to MHRK 1.7 (H1 2021: MHRK 3.5).
• Gross profit was MHRK 103.5 (H1 2021: MHRK 154.3), down by 32.9 % year-over-year, primarily due to higher costs as a result of termination of eHealth implementation project in Belarus. Furthermore, gross profit was impacted by the increase of salaries as a response to inflationary pressures and increase in the prices of energy, raw materials and materials. Gross margin decreased to 9.7% (H1 2021: 15.2%).
• Selling and administrative expenses increased by 3.0% year-over-year, amounting to MHRK 44.3 (H1 2021: MHRK 43.0). The share of selling and administrative expenses in sales revenue was 4.17% (H1 2021: 4.24%).
• Operating profit amounted to MHRK 76.9, down by 35.6% year-over-year (H1 2021: MHRK 119.3) due to lower gross profit.
• Gain from financial activities amounted to MHRK 3.2 (H1 2021: MHRK 1.5), mainly due to higher interest income and positive exchange differences.
• Profit before tax decreased by 33.8% year-over-year to MHRK 80.0 (H1 2021: MHRK 120.8).
• Net profit amounted to MHRK 68.4 (H1 2021: MHRK 101.4), down by 32.6% year-over-year. Return on Sales (ROS) was 6.4% (H1 2021: 10.0%).
• Cash flow from operating activities amounted to MHRK 20.5 (H1 2021: MHRK 141.8), which is in line with the expectations taking into consideration the market environment.
• Working Capital Efficiency, expressed in WCD, was 10 days (H1 2021: 10 days). Excluding services to Ericsson, Working Capital Efficiency was 28 days (H1 2021: 22 days). The number of WCD is impacted by the implementation dynamics of the ongoing projects and disruptions in supply chains.

PRESS INFO

July 22, 2022

• Cash and cash equivalents, including short term financial assets, as at June 30, 2022 amounted to MHRK 515.1 (41.0% 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.
• The Group has a solid balance sheet with the total assets of MHRK 1,256.2 as at June 30, 2022, up by 4.4% compared to the end of 2021, which is mainly the result of an increase in receivables. Equity ratio was 30.9% (end of 2021: 33.6%). The decrease in equity ratio is the result of dividend calculation. The dividend shall be paid out in July 2022, and as at June 30, 2022, dividend payable amounting to MHRK 84.6 was shown in the balance sheet in "Trade and other payables".
• With related parties, the transactions were as follows: sales of products and services amounted to MHRK 504.8 (H1 2021: MHRK 455.3), while the procurement of products and services amounted to MHRK 124.1 (H1 2021: MHRK 143.1).
• As at June 30, 2022, balances outstanding with related parties were as follows: receivables amounted to MHRK 116.4 (end of 2021: MHRK 76.8), and payables to MHRK 58.9 (end of 2021: MHRK 12.6).

Business situation in major markets

In the domestic market, sales revenue amounted to MHRK 441.0 (H1 2021: MHRK 447.0), down by 1.3% yearover-year.

With Hrvatski Telekom, we have continued a quality cooperation by delivering solutions for 5G network and fiberoptic network, based on signed multi-year agreements. Furthermore, we are in the phase of implementation of three contracts related to the design and build of the passive part of FTTH (Fiber To The Home) networks and are co-financed by the European Structural and Investment Funds.

With A1 Hrvatska, we have continued the activities related to the expansion of coverage and capacity of radio 5G network, as well as the realization of contract related to build of convergent 5G core network. At the same time, the cooperation continued on the expansion of capacity of 4G network as well as on the modernization of microwave transmission systems.

As part of a pilot project, in cooperation with the company Odašiljači i veze, we have implemented a private 5G network at a factory in the Šibenik-Knin County.

In the segment Digital Society, we have contracted the continuation of cooperation related to the support services for the application system of the Joint Information System of Land Registry and Cadaster (JIS). Thus, our company has contracted the provision of support for JIS and OSS (One Stop Shop) systems until the end of May 2023. With the Central State Office for the Development of the Digital Society, a contract was signed regarding the project "Consolidation of National IT eHealth system (CEZIH healthcare infrastructure)" with the aim to further upgrade HW and SW. The activities have also continued on innovative solutions for Industry 4.0 in e-environment and smart cities.

In export markets (excluding services to Ericsson) sales revenue amounted to MHRK 116.5 (H1 2021: MHRK 111.5), up by 4.5% year-over-year.

The escalation of political and economic situation has a negative impact on the realization of contracted business in export markets, primarily in Belarus, and also reflects on new business opportunities.

In Bosnia and Herzegovina, with the operator HT Mostar, a contract was signed on providing support for the maintenance of fixed and mobile network of HT Mostar until the end of 2023. Realization of the contract, which is ongoing, will enable an easier and more agile management and maintenance of network systems for HT Mostar.

With Crnogorski Telekom, after the first commercial 5G network in Montenegro had been put into operation, further activities of mobile network modernization have continued, including the increase of capacity, expansion and coverage of the entire Montenegro with 5G signal.

With the operator IPKO, Kosovo, we have signed a contract for software subscription for 2022. Also, the first 5G pilot network was successfully put into operation.

In the market of Belarus, due to the sanctions introduced by EU, the procedure was initiated to terminate the contract related to the implementation of eHealth of the Republic of Belarus. We have also temporarily suspended all the activities on the realization of multi-year agreements with telecom operators, as well as signing of new contracts. The realization of the signed contracts depends on the sanction regimes and restrictive measures.

In Ericsson market, sales revenue amounted to MHRK 504.8 (H1 2021: MHRK 455.7), up by 10.8% year-overyear.

During Q2, Ericsson Nikola Tesla's Research and Development (R&D) Center has continued to deliver critical 5G features for Ericsson portfolio in areas Radio, compute Radio Access Networks and Unified Data Management. Within Cloud area, by taking over additional responsibilities, we have demonstrated the agility of the organization and have positioned even stronger within global Ericsson R&D market.

The experts from the Center for Services and Solutions for Customers, in addition to projects for the customers of Ericsson Nikola Tesla Group, were engaged on projects for Ericsson customers through activities of creating solutions and defining network parameters, optimization and integration of solutions and technologies in Australia, Austria, Bahrein, Belgium, Cuba, Czech Republic, Denmark, Germany, Greece, Hungary, Indonesia, Iraq, Ireland, Italy, Japan, Jordan, Kenya, Saudi Arabia, Libya, Lithuania, Luxembourg, Malaysia, Malta, Montenegro, Netherlands, Nigeria, Northern Macedonia, Norway, Oman, Pakistan, Portugal, Romania, Senegal, Serbia, Spain, Sweden, Switzerland, Slovenia, Slovakia, the United States of America, the United Kingdom, Tahiti, Jamaica, Morocco, etc. These are complex projects that, among other, included the activities on the introduction of 5G technology, operational and business support systems, as well as projects of introduction of core solutions in Cloud. On these projects, the experts of the Center for Services and Solutions for Customers, have often took over the leading project roles (leading solution architect, leading system integrator, project manager, etc.). The work has continued on the development and implementation of software tools for management and optimization of mobile networks that are used in the area of network build by numerous operators worldwide.

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 the work of Ericsson Nikole Tesla Group's employees 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 the needs of Ericsson corporation.

PRESS INFO

July 22, 2022

Other information

At the Annual General Meeting of Ericsson Nikola Tesla joint-stock company, held on June 27, 2022, among other decisions, a decision was adopted on dividend payment, amounting to HRK 64 per share out of retained earnings from the year 2020 and 2021. The dividend shall be paid out on July 22, 2022 to all the Company's shareholders who had the Company shares registered on their securities account in the Central Depository & Clearing Company on July 1, 2022.

The Annual General Meeting reached the decision to allocate the amount of HRK 10,000,000.00 from 2020 retained earnings to reserves for treasury shares and gave consent to the Company's Management Board to award up to 5,000 treasury shares to the Company's employees.

The President of the Supervisory Board, Franck Pierre Roland Bouétard, Ericsson Regional Head for France, Algeria, Tunisia, Belgium and Luxembourg, as well as Head of Orange, Altice and Iliad global accounts, was reelected as a member of the Supervisory Board for a four-year term.

Furthermore, Remuneration Report for Supervisory Board members and Management Board in 2021 was approved. KPMG Croatia d.o.o., was again appointed as the Auditor for the year 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	28,914	2.17
Raiffeisenbank Austria d.d. / Raiffeisen voluntary pension fund	16,739	1.26
PBZ d.d. / custodian client account	10,403	0.78
PBZ d.d. / The Bank of New York as Custodian	9,781	0.73
Ericsson Nikola Tesla d.d.	9,008	0.68
OTP banka d.d. / OTP Index fund – open-end alternative investment fund with public offering	8,372	0.63
Vuleta Ivica	5,318	0.40
Other shareholders	425,638	31.96

Ericsson Nikola Tesla's major shareholders (as at June 30, 2022)

Share price information in Q2 2022:

Highest (HRK)	Lowest (HRK)	Last (HRK)	Market MHRK)	cap.	(in
1,990.00	1,735.00	1,740.00	2,317.1

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 June 30, 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:

Antonija Lončar Orhideja Gjenero Director Marketing, Communication and CSR 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 4473 Tel.: +385 1 365 4431 Mob.: +385 91 365 4473 Mob.: +385 91 365 4431 E-mail: antonija.loncar@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. Statement of comprehensive income for the period ended 30 June 2022

	2022	2021
	HRK '000	HRK '000
Sales revenue	795.222	743.194
Cost of sales	-716.714	-619.125
Gross profit	__ 78.508	__ 124.069
Selling expenses	-19.771	-20.690
Administrative expenses	-19.539	-18.077
Other operating income	19.668	8.847
Impairment loss on financial assets	-211	-548
Operating profit	__ 58.655	__ 93.601
Finance income	__ 5.899	__ 2.284
Finance expense	-2.472	-549
Finance income/(expense), net	__ 3.427	__ 1.735
Profit before tax	__ 62.081	__ 95.336
Income tax	-8.175	-14.160
Profit for the year	__ 53.907	__ 81.175
Other comprehensive income	__ -	__ -
Total comprehensive income for the year	__ 53.907	__ 81.175
Earnings per share (HRK)	__ 31	__ 61

Ericsson Nikola Tesla d.d. Statement of financial position as at 30 June 2022

	2022	2021
	HRK '000	HRK '000
ASSETS
Non-current assets
Property, plant and equipment	122.474	129.380 29.231
Right of use assets Intangible assets	31.421 878	1.080
Investments in subsidiaries	1.053	1.053
Loans and receivables	21.944	21.976
Deferred tax assets	12.555	12.555
	__	__
Total non-current assets	190.325 __	195.275 __
Current assets
Inventories	91.538	89.048
Trade receivables	172.502	108.484
Receivables from related parties	117.133	80.178
Other receivables	5.683	36.236
Financial assets at fair value through profit or loss	31.100	32.997
Prepayments	4.782	6.335
Cash and cash equivalents	350.496 __	332.301 __
Total current assets	773.234 __	685.579 __
TOTAL ASSETS	963.559 __	880.854 __
EQUITY AND LIABILITIES
Equity Share capital		133.165
Treasury shares	133.165 -16.060	-12.421
Legal reserves	6.658	6.658
Reserve for treasury shares	46.439	36.512
Retained earnings	102.534	139.322
Total equity	__ 272.736	__ 303.236
	__	__
Non-current liabilities Borrowings	10.455	16.982
Lease liabilities	25.029	21.314
Other non-curent liabilities	401	442
Employee benefits	5.627	6.102
Total non-current liabilities	__ 41.512	__ 44.840
	__	__
Current liabilities
Payables to related parties	61.055	5.797 14.088
Borrowings Trade and other payables	14.088 228.121	148.676
Income tax payable	7.007	4.103
Provisions	10.807	13.307
Accrued charges and deferred revenue	116.786	91.365
Contract liabilities	205.032	247.309
Lease liabilities	6.415	8.133
Total current liabilities	__ 649.311	__ 532.778
Total liabilities	__ 690.823	__ 577.618
TOTAL EQUITY AND LIABILITIES	__ 963.559	_ 880.854 _
	__

Ericsson Nikola Tesla d.d.

Statement of cash flows for the period ended 30 June 2022

	2022	2021
	HRK '000	HRK '000
Cash flows from operating activities
Profit before tax	62.081 _	95.336 _
Adjustments for:
Depreciation and amortisation	19.206	23.067
Effects of lease derecognition	-	-
Impairment losses and reversals	-260	-564
Gain on sale of property, plant and equipment	-230	-52
Net loss/(gain) on remeasurement of financial assets	1.898	-246
Interest income	-3.040	-1.360
Interest expense	570	503
Foreign exchange (gains)/losses, net	-2.600	-159
Share-based payments	3.954 _	1.166 _
Changes in working capital
In receivables	-76.896	-93.260
In inventories	-2.491	-29.542
In provisions	-2.976	1.426
In payables	27.911	132.658 _
Cash generated from operations	_ 27.127	128.973
Interest paid	_ -575	_ -677
Income taxes paid	-1.660	-79
Net cash from operating activities	_ 24.892	_ 128.217
Cash flows from investing activities	_	_
Interest received	2.943	869
Proceeds from sale of property, plant and equipment	193	31
Purchases of property, plant and equipment, and intangible assets	-2.422	-6.247
Deposits given to financial institutions - net	12.901	3.250
Receipt of government grant	-	1.325
Net change of financial assets at fair value through profit and loss	- _	- _
Net cash used in investing activities	13.615 _	-772 _
Cash flows from financing activities
Repayment of borrowings	-12.344	-7.044
Purchase of treasury shares	-3.711	-
Dividends paid	-50	-3
Payment of lease liabilities	-5.053 _	-6.007 _
Net cash used in financing activities	-21.157 _	-13.055 _
Effects of exchange rate changes on cash and cash equivalents	844 _	-317
Net increase/(decrease) in cash and cash equivalents	18.194	_ 114.073
Cash and cash equivalents at the beginning of the year	332.301	245.833
Cash and cash equivalents at the end of the year	_ 350.496 _	_ 359.906 _

Annex 1
		ISSUER'S GENERAL DATA
Reporting period:		1.1.2022	30.6.2022 to
Year:		2022
Quarter:		2.
		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	2678
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 30.06.2022

Submitter: ERICSSON NIKOLA TESLA D.D.			in HRK
	ADP	Last day of the	At the reporting date of the current period
	code	year
			4
A) RECEIVABLES FOR SUBSCRIBED CAPITAL UNPAID B) FIXED ASSETS (ADP 003+010+020+031+036)	001 002	0 195.275.284	0 190.324.910
I INTANGIBLE ASSETS (ADP 004 to 009) 1 Research and development	003	1.079.766	878.308 0
2 Concessions, patents, licences, trademarks, software and other rights	005	1.079.766	878.308
3 Goodwill 4 Advances for the purchase of intangible assets	006	0	0 0
5 Intangible assets in preparation	008	0	0
II TANGIBLE ASSETS (ADP 011 to 019)	010	158.611.407	0 153.895.226
1 Land 2 Buildings	012	81.500.293	15.605.344 81.687.389
3 Plant and equipment 4 Tools, working inventory and transportation assets	013	46.233.527	37.160.981 13.580.287
5 Biological assets	Item preceding business 1 2 3 004 0 007 0 6 Other intangible assets 009 0 011 15.605.344 014 15.009.657 015 0 6 Advances for the purchase of tangible assets 016 0 017 217.724 8 Other tangible assets 018 44.862 019 0 020 17.533.295 021 1.052.798 022 0 3 Loans, deposits, etc. to undertakings within the group 023 48.531 024 0 025 0 026 0 027 0 8 Loans, deposits, etc. given 028 16.431.966 029 0 030 0 031 5.495.745 032 0 033 0 034 5.127.139 035 368.606 036 12.555.071 037 679.244.968 038 89.047.839 039 0 040 89.047.839 041 0 042 0 043 0 044 0 045 0 046 211.581.418 047 5.786.039 048 74.392.078 049 108.484.202 050 0 5 Receivables from government and other institutions 051 4.496.122 052 18.422.977 053 46.314.419 054 0 055 0 056 0 4 Investments in holdings (shares) of companies linked by virtue of 057 0 058 0 059 0 060 32.997.449 061 13.316.970 062 0 063 332.301.292 064 6.334.220 E) TOTAL ASSETS (ADP 001+002+037+064) 065 880.854.472 066 0 067 303.235.757 I INITIAL (SUBSCRIBED) CAPITAL 068 133.165.000 069 0 III RESERVES FROM PROFIT (ADP 071+072-073+074+075) 070 30.748.156 071 6.658.250 072 36.511.836 073 -12.421.930 074 0
7 Tangible assets in preparation			0 5.820.254
9 Investment property			40.971 0
III FIXED FINANCIAL ASSETS (ADP 021 to 030) 1 Investments in holdings (shares) of undertakings within the group			16.858.767 1.052.798
2 Investments in other securities of undertakings within the group			0 48.601
4. Investments in holdings (shares) of companies linked by virtue of participating interests			0
5 Investment in other securities of companies linked by virtue of participating interests			0
6 Loans, deposits etc. to companies linked by virtue of participating interests			0
7 Investments in securities			0
9 Other investments accounted for using the equity method			15.757.368 0
10 Other fixed financial assets IV RECEIVABLES (ADP 032 to 035)			0 6.137.538
1 Receivables from undertakings within the group 2 Receivables from companies linked by virtue of participating			0
interests			0
3 Customer receivables 4 Other receivables			5.773.585 363.953
V DEFERRED TAX ASSETS C) CURRENT ASSETS (ADP 038+046+053+063)			12.555.071 768.452.343
I INVENTORIES (ADP 039 to 045) 1 Raw materials and consumables			91.538.804 12.025.043
2 Work in progress 3 Finished goods			79.513.761 0
4 Merchandise			0
5 Advances for inventories 6 Fixed assets held for sale			0 0
7 Biological assets II RECEIVABLES (ADP 047 to 052)			0 293.517.969
1 Receivables from undertakings within the group 2 Receivables from companies linked by virtue of participating			3.296.396
interests 3 Customer receivables			113.836.120 172.502.692
4 Receivables from employees and members of the undertaking			0
6 Other receivables			315.451 3.567.310
III CURRENT FINANCIAL ASSETS (ADP 054 to 062) 1 Investments in holdings (shares) of undertakings within the group			32.899.904 0
2 Investments in other securities of undertakings within the group			0
3 Loans, deposits, etc. to undertakings within the group			0
participating interests			0
5 Investment in other securities of companies linked by virtue of participating interests			0
6 Loans, deposits etc. to companies linked by virtue of participating interests			0
7 Investments in securities 8 Loans, deposits, etc. given			31.099.904 1.800.000
9 Other financial assets IV CASH AT BANK AND IN HAND			0 350.495.666
D ) PREPAID EXPENSES AND ACCRUED INCOME			4.782.018 963.559.271
OFF-BALANCE SHEET ITEMS LIABILITIES			0
A) CAPITAL AND RESERVES (ADP 068 to			272.736.381
II CAPITAL RESERVES			133.165.000 0
1 Legal reserves			37.037.556 6.658.250
2 Reserves for treasury shares 3 Treasury shares and holdings (deductible item)			46.438.936 -16.059.630
4 Statutory reserves 5 Other reserves	075		0
IV REVALUATION RESERVES	076	0 0	0 0
V FAIR VALUE RESERVES AND OTHER (ADP 078 to 082) 1 Financial assets at fair value through other comprehensive income	077 078	0 0	0 0
(i.e. available for sale) 2 Cash flow hedge - effective portion	079	0	0
3 Hedge of a net investment in a foreign operation - effective portion 4 Other fair value reserves	080 081	0 0	0 0
5 Exchange differences arising from the translation of foreign	082	0	0
operations (consolidation) VI RETAINED PROFIT OR LOSS BROUGHT FORWARD (ADP 084-	083	24.115.606	48.627.048
085) 1 Retained profit	084	24.115.606	48.627.048
2 Loss brought forward VII PROFIT OR LOSS FOR THE BUSINESS YEAR (ADP 087-088)	085 086	0 115.206.995	0 53.906.777
1 Profit for the business year 2 Loss for the business year	087 088	115.206.995 0	53.906.777 0
VIII MINORITY (NON-CONTROLLING) INTEREST B) PROVISIONS (ADP 091 to 096)	089 090	0 6.102.034	0 5.626.922
1 Provisions for pensions, termination benefits and similar	091	6.102.034	5.626.922
obligations 2 Provisions for tax liabilities	092	0	0
3 Provisions for ongoing legal cases	093	0	0
4 Provisions for renewal of natural resources 5 Provisions for warranty obligations	094 095	0 0	0 0
6 Other provisions C) LONG-TERM LIABILITIES (ADP 098 to 108)	096 097	0 38.738.280	0 35.885.072
1 Liabilities to undertakings within the group	098	0	0
2 Liabilities for loans, deposits, etc. of undertakings within the group 3 Liabilities to companies linked by virtue of participating interests	099 100	0 0	0 0
4 Liabilities for loans, deposits etc. of companies linked by virtue of participating interests	101	0	0
5 Liabilities for loans, deposits etc. 6 Liabilities to banks and other financial institutions	102 103	0 38.295.580	0 35.483.935
7 Liabilities for advance payments	104	0	0
8 Liabilities to suppliers 9 Liabilities for securities	105 106	0 0	0 0
10 Other long-term liabilities 11 Deferred tax liability	107 108	442.700 0	401.137 0
D) SHORT-TERM LIABILITIES (ADP 110 to 123) 1 Liabilities to undertakings within the group	109 110	246.632.690 1.821.627	364.458.857 11.601.092
2 Liabilities for loans, deposits, etc. of undertakings within the group	111	0	0
3 Liabilities to companies linked by virtue of participating interests 4 Liabilities for loans, deposits etc. of companies linked by virtue of	112	3.975.002	49.454.108
participating interests 5 Liabilities for loans, deposits etc.	113 114	0 0	0 0
6 Liabilities to banks and other financial institutions	115	22.221.607	20.503.725
7 Liabilities for advance payments 8 Liabilities to suppliers	116 117	52.527.993 14.406.438	36.966.041 50.854.073
9 Liabilities for securities 10 Liabilities to employees	118 119	0 111.900.908	0 64.588.647
11 Taxes, contributions and similar liabilities 12 Liabilities arising from the share in the result	120 121	26.471.734 0	35.035.543 84.649.088
13 Liabilities arising from fixed assets held for sale 14 Other short-term liabilities	122 123	0	0
E) ACCRUALS AND DEFERRED INCOME	124	13.307.381 286.145.711	10.806.540 284.852.039
F) TOTAL – LIABILITIES (ADP 067+090+097+109+124) G) OFF-BALANCE SHEET ITEMS	125 126	880.854.472 0	963.559.271 0

for the period 01.01.2022 to 30.06.2022 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	752.041.108	415.987.239	814.889.615	404.764.555
1 Income from sales with undertakings within the group	002	9.561.324	1.610.322	3.837.376	1.651.127
2 Income from sales (outside group)	003	733.633.128	409.716.803	791.384.216	392.590.555
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	899.087	438.209	1.194.073	596.479
5 Other operating income (outside the group)	006	7.947.569	4.221.905	18.473.950	9.926.394
II OPERATING EXPENSES (ADP 08+009+013+017+018+019+022+029)	007	658.439.677	358.522.027	756.234.894	402.402.930
1 Changes in inventories of work in progress and finished goods	008	-29.541.972	-17.817.361	9.534.077	21.244.316
2 Material costs (ADP 010 to 012)	009	268.884.373	160.802.239	293.413.379	152.006.175
a) Costs of raw materials and consumables	010	134.868.142	79.596.635	154.558.016	65.909.067
b) Costs of goods sold	011	0	0	0	0
c) Other external costs	012	134.016.231	81.205.604	138.855.363	86.097.108
3 Staff costs (ADP 014 to 016)	013	369.653.103	186.659.745	399.175.124	200.818.643
a) Net salaries and wages	014	228.958.089	115.738.448	244.207.370	124.105.397
b) Tax and contributions from salary costs	015	99.764.925	49.485.720	110.947.637	54.085.150
c) Contributions on salaries 4 Depreciation 5 Other costs	016 017	40.930.089 23.066.940 18.254.757	21.435.577 11.615.175 10.374.240	44.020.117 19.206.164 31.447.650	22.628.096 9.193.603 16.800.597
6 Value adjustments (ADP 020+021) a) fixed assets other than financial assets	018 019 020	1.004.091 0	344.012 0	0 0	0 0
b) current assets other than financial assets	021	1.004.091	344.012	0	0
7 Provisions (ADP 023 to 028)	022	6.570.819	6.112.149	3.247.385	2.128.481
a) Provisions for pensions, termination benefits and similar	023	2.739.669	2.737.226	3.172.653	2.110.283
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	476.835	20.608	74.732	18.198
f) Other provisions	028	3.354.315	3.354.315	0	0
8 Other operating expenses	029	547.566	431.828	211.115	211.115
III FINANCIAL INCOME (ADP 031 to 040)	030	2.283.529	-1.306.000	5.898.764	3.574.251
1 Income from investments in holdings (shares) of undertakings within the group	031	0	0	0	0
2 Income from investments in holdings (shares) of companies linked by virtue of participating interests	032	0	0	0	0
3 Income from other long-term financial investment and loans granted to undertakings within the group	033	0	0	0	0
4 Other interest income from operations with undertakings within the group	034	0	0	0	0
5 Exchange rate differences and other financial income from operations with undertakings within the group	035	0	-29.803	10.250	-6.515
6 Income from other long-term financial investments and loans	036	0	0	0	0
7 Other interest income	037	1.359.831	989.538	3.040.234	2.687.177
8 Exchange rate differences and other financial income	038	677.706	-2.323.964	2.848.280	893.589
9 Unrealised gains (income) from financial assets	039	0	0	0	0
10 Other financial income	040	245.992	58.229	0	0
IV FINANCIAL EXPENSES (ADP 042 to 048)	041	549.009	388.200	2.472.050	1.542.136
1 Interest expenses and similar expenses with undertakings within the group	042	27.383	25.657	4.173	1.616
2 Exchange rate differences and other expenses from operations with undertakings within the group 3 Interest expenses and similar expenses	043 044	18.466 503.160	18.466 344.077	0 570.333	0 291.126
4 Exchange rate differences and other expenses	045	0	0	0	0
5 Unrealised losses (expenses) from financial assets	046	0	0	0	0
6 Value adjustments of financial assets (net)	047	0	0	0	0
7 Other financial expenses	048	0	0	1.897.544	1.249.394
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	052	0	0	0	0
IX TOTAL INCOME (ADP 001+030+049 +050)	053	754.324.637	414.681.239	820.788.379	408.338.806
X TOTAL EXPENDITURE (ADP 007+041+051 + 052)	054	658.988.686	358.910.227	758.706.944	403.945.066
XI PRE-TAX PROFIT OR LOSS (ADP 053-054)	055	95.335.951	55.771.012	62.081.435	4.393.740
1 Pre-tax profit (ADP 053-054)	056	95.335.951	55.771.012	62.081.435	4.393.740
2 Pre-tax loss (ADP 054-053)	057	0	0	0	0
XII INCOME TAX	058	14.160.471	8.288.782	8.174.658	-709.127
XIII PROFIT OR LOSS FOR THE PERIOD (ADP 055-059)	059	81.175.480	47.482.230	53.906.777	5.102.867
1 Profit for the period (ADP 055-059)	060	81.175.480	47.482.230	53.906.777	5.102.867
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)	067	0	0	0	0
TOTAL OPERATIONS (to be filled in only by undertakings subject to IFRS with discontinued operations) 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 2 Attributable to minority (non-controlling) interest STATEMENT OF OTHER COMPRHENSIVE INCOME (to be filled in by undertakings subject to IFRS)	076 077	0 0	0 0	0 0	0 0
I PROFIT OR LOSS FOR THE PERIOD II OTHER COMPREHENSIVE INCOME/LOSS BEFORE TAX	078	81.175.480	47.482.230	53.906.777	5.102.867
(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	089	0	0	0	0
3 Profit or loss arising from effective cash flow hedging 4 Profit or loss arising from effective hedge of a net investment in a	090	0	0	0	0
foreign operation 5 Share in other comprehensive income/loss of companies linked by	091	0	0	0	0
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 9 Income tax relating to items that may be reclassified to profit or loss	095	0	0	0	0
V NET OTHER COMPREHENSIVE INCOME OR LOSS (ADP 080+087-	096	0	0	0	0
	097	0	0	0	0
086 - 096) VI COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (ADP	098	81.175.480	47.482.230	53.906.777	5.102.867
078+097) APPENDIX to the Statement on comprehensive income (to be filled in by undertakings that draw up consolidated statements)
VI COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (ADP 100+101)	099	81.175.480	47.482.230	53.906.777	5.102.867
1 Attributable to owners of the parent	100	81.175.480	47.482.230	53.906.777	5.102.867
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 30.06.2022

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	95.335.951 22.354.559	62.081.435 19.497.522
a) Depreciation	003	23.066.940	19.206.164
b) Gains and losses from sale and value adjustment of fixed tangible and intangible assets	004	-51.662	-229.826
c) Gains and losses from sale and unrealised gains and losses and value	005	-245.991	1.897.545
adjustment of financial assets
d) Interest and dividend income e) Interest expenses	006	-1.359.831 503.160	-3.040.234 570.333
f) Provisions	007 008	0	0
g) Exchange rate differences (unrealised)	009	-159.473	-2.600.047
h) Other adjustments for non-cash transactions and unrealised gains and losses	010	601.416	3.693.587
I Cash flow increase or decrease before changes in working capital (ADP 001+002)	011	117.690.510	81.578.957
3 Changes in the working capital (ADP 013 to 016)	012	11.282.157	-54.451.579
a) Increase or decrease in short-term liabilities	013	132.658.209	27.911.184
b) Increase or decrease in short-term receivables	014	-93.260.225	-76.895.844
c) Increase or decrease in inventories	015	-29.541.972	-2.490.965
d) Other increase or decrease in working capital	016	1.426.145	-2.975.954
II Cash from operations (ADP 011+012) 4 Interest paid	017	128.972.667	27.127.378
5 Income tax paid	018 019	-677.450 -78.545	-575.098 -1.660.258
A) NET CASH FLOW FROM OPERATING ACTIVITIES (ADP 017 to 019)	020	128.216.672	24.892.022
Cash flow from investment activities
1 Cash receipts from sales of fixed tangible and intangible assets	021	31.178	193.246
2 Cash receipts from sales of financial instruments	022	0	0
3 Interest received	023	869.267	2.943.408
4 Dividends received	024	0	0
5 Cash receipts from repayment of loans and deposits	025	3.249.610	12.900.523
6 Other cash receipts from investment activities	026	1.324.523	0
III Total cash receipts from investment activities (ADP 021 to 026)	027	5.474.578	16.037.177
1 Cash payments for the purchase of fixed tangible and intangible assets	028	-6.246.958	-2.421.830
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	031 032	0 0	0 0
IV Total cash payments from investment activities (ADP 028 to 032)	033	-6.246.958	-2.421.830
B) NET CASH FLOW FROM INVESTMENT ACTIVITIES (ADP 027 +033)	034	-772.380	13.615.347
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	038	0	0
V Total cash receipts from financing activities (ADP 035 to 038) 1 Cash payments for the repayment of credit principals, loans and other	039	0	0
borrowings and debt financial instruments	040	-7.044.132	-12.343.678
2 Cash payments for dividends	041	-3.485	-50.167
3 Cash payments for finance lease	042	-6.007.448	-5.052.986
4 Cash payments for the redemption of treasury shares and decrease in initial (subscribed) capital	043	0	-3.710.600
5 Other cash payments from financing activities	044		0
VI Total cash payments from financing activities (ADP 040 to 044)	045	-13.055.065	-21.157.431
C) NET CASH FLOW FROM FINANCING ACTIVITIES (ADP 039 +045)	046	-13.055.065	-21.157.431
1 Unrealised exchange rate differences in respect of cash and cash equivalents	047	-316.582	844.436
D) NET INCREASE OR DECREASE IN CASH FLOWS (ADP 020+034+046+047)	048	114.072.645	18.194.374
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	359.905.715	350.495.666

for the period 01.01.2022 to 30.06.2022 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	030	0	0
financial instruments
3 Cash receipts from credit principals, loans and other borrowings	031	0	0
4 Other cash receipts from financing activities	032	0	0
V Total cash receipts from financing activities (ADP 029 to 032)	033	0	0
1 Cash payments for the repayment of credit principals, loans andother borrowings and debt financial instruments	034	0	0
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
initial (subscribed) capital	037	0	0
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	30.6.2022																	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 7 Changes in revaluation reserves of fixed tangible and intangible assets	06	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	07	0	0	0	0	0	0	0		0 0	0		0		0	0	0	0	0
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 10 Profit or loss arising from effective hedge of a net investment in a foreign	09	0	0	0	0	0	0	0		0 0	0		0		0	0	0	0	0
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 13 Other changes in equity unrelated to owners	12 13	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
14 Tax on transactions recognised directly in equity	14	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 bankruptcy settlement procedure or from the reinvestment of profit)	15	0	0	0	0	0	0	0		0 0	0		0 0	0	0	0	0	0	0
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 22	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 24 Balance on the last day of the previous business year reporting period (ADP	23	0	0	0	0	0	0	0		0 0	0		0 0	0	0	0	0	0	0
04 to 23) APPENDIX TO THE STATEMENT OF CHANGES IN EQUITY (to be filled in by undertakings that draw up financial statements in accordance with the IFRS)	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
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 0	6.658.250 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	24.115.606 0	115.206.995 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) 5 Profit/loss of the period	31 32	133.165.000 0	0 0	6.658.250 0	36.511.836 0	12.421.930 0	0 0	0 0		0 0 0 0	0 0		0 0 0	0	24.115.606 0	115.206.995 53.906.777	303.235.757 53.906.777	0 0	303.235.757 53.906.777
6 Exchange rate differences from translation of foreign operations	33	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	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 through other comprehensive income (available for sale)	35	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	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 operation	37	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	38	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 13 Other changes in equity unrelated to owners	39	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	40 41	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 bankruptcy settlement procedure or from the reinvestment of profit)	42	0	0	0	0	0	0	0		0 0	0		0 0	0	0	0	0	0	0
16 Decrease in initial (subscribed) capital arising from the pre-bankruptcy settlement procedure	43	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	44	0	0	0	0	0	0	0		0 0	0		0 0	0	0	0	0	0	0
18 Redemption of treasury shares/holdings 19 Payments from members/shareholders	45 46	0 0	0 0	0 0	10.000.000 0	3.710.600 0	0 0	0 0		0 0 0 0	0 0		0 0 0 0	0 0	-10.000.000 0	0 0	-3.710.600 0	0 0	-3.710.600 0
20 Payment of share in profit/dividend	47	0	0	0	0	0	0	0		0 0	0		0 0	0	-84.649.088	0	-84.649.088	0	-84.649.088
21 Other distributions and payments to members/shareholders 22 Carryforward per annual plane	48 49	0 0	0 0	0 0	-72.900 0	-72.900 0	0 0	0 0		0 0 0 0	0 0		0 0 0 0	0 0	3.953.535 115.206.995	0 -115.206.995	3.953.535 0	0 0	3.953.535 0
23 Increase in reserves arising from the pre-bankruptcy settlement procedure 24 Balance on the last day of the current business year reporting period (ADP	50	0	0	0	0	0	0	0		0 0	0		0 0	0	0	0	0	0	0
31 to 50) APPENDIX TO THE STATEMENT OF CHANGES IN EQUITY (to be filled in by undertakings that draw up financial statements in accordance with the IFRS)	51	133.165.000	0	6.658.250	46.438.936	16.059.630	0	0		0 0	0		0 0	0	48.627.048	53.906.777	272.736.381	0	272.736.381
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	53.906.777	53.906.777	0	53.906.777
III TRANSACTIONS WITH OWNERS IN THE CURRENT PERIOD RECOGNISED DIRECTLY IN EQUITY (ADP 42 to 50)	54	0	0	0	9.927.100	3.637.700	0	0		0 0	0		0 0	0	24.511.442	-115.206.995	-84.406.153	0	-84.406.153

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: Q2 2022

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 extraordinary administration

1. adopted accounting policies (only an indication of whether there has been a change from the previous period)

2. 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

undertaking within the group or company linked by virtue of participating interest shall be disclosed separately 4. the amount and nature of individual items of income or expenditure which are of exceptional size or incidence

1. amounts owed by the undertaking and falling due after more than five years, as well as the total debts of the undertaking covered 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

2. 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

1. 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

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

3. 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 17. 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

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 been 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) 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

a)

Segment report

c) 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.

d) The issuer does not have sesonal bussines activities.

e)

Transactions with related parties:

	Networks		Digital Services			Managed Services	Other		Unallocated		Total
			30.06.2022 30.06.2021 30.06.2022 30.06.2021 30.06.2022 30.06.2021 30.06.2022 30.06.2021 30.06.2022 30.06.2021 30.06.2022 30.06.2021
	'000 kn	'000 kn	'000 kn	'000 kn	'000 kn	'000 kn	'000 kn	'000 kn	'000 kn	'000 kn	'000 kn	'000 kn
Segment sales revenue	497.964	450.007	283.330	279.867	12.191	9.828	1.737	3.492	0	0	795.222	743.194
Operating profit	80.310	82.351	-3.583	28.775	1.332	344	135	209	-19.539	-18.078	58.655	93.601

	HRK 000	30.06.2022 30.06.2021 HRK 000
Sales	523.626	466.716
Purchases	125.355	144.999
Balances with related parties
	HRK 000	30.06.2022 31.12.2021 HRK 000
Receivable	117.133	80.178
Payable	61.055	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

1. this document.

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

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

2. 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.

3. The average number of employees during the reporting period is 2669 (Q2 2021: 2594). The Company does not categorise employees.

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

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

6. reporting period. The Company has no participating interest.

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

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

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

classification of the positions in the audited annual report in PDF):

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. 16.

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.

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

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. Additionally, within the category Non-current liabilities in Statement of Financial position total amount of Borrowings and Lease liabilities are shown under AOP 103 Liabilities to bank and other financial institutions Within the category Current assets in Statement of financial position total amount of Other receivables and Financial assets at fair value through profit or loss is indicated in TFI-POD form under AOP 051 Receivables from government and other institutions, 052 Other receivables, 060 Investments in securities, 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. Within the category Current liabilities in Statement of financial position total amount of Trade and other payables and Income tax payable

is indicated in TFI-POD in AOP 117 Liabilities to suppliers,119 Liabilities to employees,120 Taxes, contributions and similar liabilities, 121 Liabilities arising from the share in the result.

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

P&L

financial institutions.

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.