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. Consolidated statement of comprehensive income for the period ended 30 June 2022

2022 2021 HRK '000 HRK '000 Sales revenue 1.062.301 1.014.217 Cost of sales -958.762 -859.966 ________ ________ Gross profit 103.539 154.251 Selling expenses -19.959 -20.112 Administrative expenses -24.325 -22.894 Other operating income 19.004 8.598 Impairment loss on financial assets -1.386 -549 ________ ________ Operating profit 76.873 119.294 ________ ________ Finance income 5.869 2.416 Finance expense -2.698 -883 ________ ________ Finance income/(expense), net 3.171 1.533 ________ ________ Profit before tax 80.044 120.827 Income tax -11.667 -19.383 ________ ________ Profit for the year 68.377 101.443 ________ ________ Other comprehensive income -58 -200 ________ ________ Total comprehensive income for the year 68.319 101.243 ________ ________ Earnings per share (HRK) 39 76

Ericsson Nikola Tesla d.d.

Consolidated statement of financial position as at 30 June 2022

	2022	2021
ASSETS	HRK '000	HRK '000
Non-current assets
Property, plant and equipment	127.657	134.198
Right of use assets	48.877	52.087
Intangible assets	5.058	5.257
Loans and receivables	21.895	21.928
Deferred tax assets	15.608 __	15.606 __
Total non-current assets	219.095 __	229.076 __
Current assets Inventories	150.367	142.852
Trade receivables	237.556	201.473
Receivables from related parties	116.370	76.808
Other receivables	6.226	35.994
Income tax receivable	298	181
Prepayments	11.170	6.787
Financial assets at fair value through profit or loss	31.100	32.997
Cash and cash equivalents	484.019 __	477.487 __
Total current assets	1.037.106 __	974.579 __
TOTAL ASSETS	1.256.201	1.203.655 __
EQUITY AND LIABILITIES	__
Equity
Share capital	133.165	133.165
Treasury shares	-16.060	-12.422
Legal reserves Reserve for treasury shares	6.658 46.439	6.658 36.512
Reserve of currency conversion	-454	-397
Retained earnings	218.207	240.526
Total equity	__ 387.955	__ 404.042
	__	__
Non-current liabilities
Borrowings	10.512	17.031
Lease liabilities	32.448	33.674
Other non-curent liabilities	394	446
Employee benefits	8.143 __	8.597 __
Total non-current liabilities	51.497 __	59.748 __
Current liabilities
Payables to related parties	58.889	12.628
Borrowings	14.111	14.134
Trade and other payables	310.497 7.168	253.501 16.806
Income tax payable Provisions	11.100	13.601
Accrued charges and deferred revenue	144.844	120.483
Contract liabilities	253.670	289.976
Lease liabilities	16.470	18.736
Total current liabilities	__ 816.749	__ 739.865
Total liabilities	__ 868.246	__ 799.613
TOTAL EQUITY AND LIABILITIES	__ 1.256.201	__ 1.203.655
	__	__

Ericsson Nikola Tesla d.d. Consolidated 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	80.044	120.827
Adjustments for:	_	_
Depreciation and amortisation	25.478	28.607
Impairment losses and reversals	-1.432	-564
Gain on sale of property, plant and equipment	-248	-78
Net loss/(gain) on remeasurement of financial assets	1.898	-246
Interest income	-3.041	-1.357
Interest expense	794	836
Foreign exchange (gains)/losses, net	-2.667	-475
Share-based payments	3.954	1.166
	_	_
Changes in working capital
In receivables	-44.584	-121.447
In inventories	-7.515	-59.592
In provisions	-2.955	1.673
In payables	-23.196	173.988
	_	_
Cash generated from operations	26.531 _	143.336 _
Interest paid	-947	-1.063
Income taxes paid	-5.125	-464
Net cash from operating activities	_ 20.459	_ 141.810
Cash flows from investing activities	_	_
Interest received	2.944	869
Proceeds from sale of property, plant and equipment	193	31
Purchases of property, plant and equipment, and intangible assets	-3.772	-6.447
Deposits given to financial institutions - net	12.901	3.222
Receipt of government grant	-	1.325
Net change of financial assets at fair value through profit and loss	-	-
	_	_
Net cash used in investing activities	12.265	-1.000
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	-10.935	-11.392
	_	_
Net cash used in financing activities	-27.040 _	-18.440 _
Effects of exchange rate changes on cash and cash equivalents	848	-316 _
Net increase/(decrease) in cash and cash equivalents	_ 6.532	122.054
Cash and cash equivalents at the beginning of the year	477.487	281.056
Cash and cash equivalents at the end of the year	_ 484.019	_ 403.110
	_	_

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 0800002028 number (MBS):
Personal identification 84214771175 number (OIB):	5299001W91BFWSUOVD63 LEI:
Institution 233 code:
Name of the issuer: ERICSSON NIKOLA TESLA D.D. ZAGREB
Postcode and town: 10000	Zagreb
treet and house number: Krapinska 45
E-mail address: etk.company@ericsson.com
Web address: www.ericsson.hr
Number of employees 3494 (end of the reporting
Consolidated report: KD	(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:
Libratel d.o.o.	Zagreb, Selska 93 1449613
ETK BH d.o.o	Mostar, Kralja Petra Krešimira 4 5-01-0996-1
on Nikola Tesla d.d. - Branch office of Kosovo	Republika Kosova, Kalabria, Obj 1., Bll 1, Kati 1 Nr.13 70633647
Ericsson Nikola Tesla Servisi d.o.o.	Zagreb, Krapinska 45 80921748
Ericsson Nikola Tesla BY d.o.o.	Bjelorusija, Minsk, Ulica Zibickaja 2 192753195
Bookkeeping firm: No	Yes No (Yes/No)
Contact person: Tatjana Ricijaš	(name of the bookkeeping firm)
Telephone: +385(0)13653343	(only name and surname of the contact person)
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
Item	ADP	Last day of the preceding business	At the reporting date of the current period
	code	year
1	2	3	4
A) RECEIVABLES FOR SUBSCRIBED CAPITAL UNPAID	001	0	0
B) FIXED ASSETS (ADP 003+010+020+031+036)	002	229.075.936	219.094.849
I INTANGIBLE ASSETS (ADP 004 to 009)	003	5.257.409	5.058.318
1 Research and development	004	0	0
2 Concessions, patents, licences, trademarks, software and other rights	005	1.084.163	885.072
3 Goodwill	006	4.173.246	4.173.246
4 Advances for the purchase of intangible assets	007	0	0
5 Intangible assets in preparation 6 Other intangible assets	008	0	0
II TANGIBLE ASSETS (ADP 011 to 019)	009	0	0
	010	186.284.651	176.533.546
1 Land	011	15.605.344	15.605.344
2 Buildings	012	91.238.625	88.014.520
3 Plant and equipment	013	46.800.326	36.977.738
4 Tools, working inventory and transportation assets	014	32.007.853	29.691.738
5 Biological assets	015	0	0
6 Advances for the purchase of tangible assets	016	0	0
7 Tangible assets in preparation	017	587.641	6.203.235
8 Other tangible assets	018	44.862	40.971
9 Investment property	019	0	0
III FIXED FINANCIAL ASSETS (ADP 021 to 030)	020	16.432.018	15.757.490
1 Investments in holdings (shares) of undertakings within the group	021	0	0
2 Investments in other securities of undertakings within the group	022	0	0
3 Loans, deposits, etc. to undertakings within the group	023	0	0
4. Investments in holdings (shares) of companies linked by virtue of participating interests	024	0	0
5 Investment in other securities of companies linked by virtue of participating interests	025	0	0
6 Loans, deposits etc. to companies linked by virtue of participating interests	026	0	0
7 Investments in securities 8 Loans, deposits, etc. given	027	0	0
9 Other investments accounted for using the equity method	028	16.432.018	15.757.490
	029	0	0
10 Other fixed financial assets	030	0	0
IV RECEIVABLES (ADP 032 to 035)	031	5.495.745	6.137.538
1 Receivables from undertakings within the group 2 Receivables from companies linked by virtue of participating	032	0	0
interests	033	0	0
3 Customer receivables	034	5.127.139	5.773.585
4 Other receivables	035	368.606	363.953
V DEFERRED TAX ASSETS	036	15.606.113	15.607.957
C) CURRENT ASSETS (ADP 038+046+053+063)	037	967.792.434	1.025.936.089
I INVENTORIES (ADP 039 to 045)	038	142.851.933	150.366.651
1 Raw materials and consumables	039	39.150.582	53.397.695
2 Work in progress	040	103.699.551	96.967.156
3 Finished goods	041	0	0
4 Merchandise	042	0	0
5 Advances for inventories	043	1.800	1.800
6 Fixed assets held for sale	044	0	0
7 Biological assets	045	0	0
II RECEIVABLES (ADP 047 to 052)	046	301.127.701	358.639.189
1 Receivables from undertakings within the group 2 Receivables from companies linked by virtue of participating	047	0	0
interests	048	76.808.031	116.370.460
3 Customer receivables	049	201.472.625	237.556.291
4 Receivables from employees and members of the undertaking	050	0	0
5 Receivables from government and other institutions	051	3.467.925	696.935
6 Other receivables	052	19.379.120	4.015.503
III CURRENT FINANCIAL ASSETS (ADP 054 to 062)	053	46.325.762	32.911.246
1 Investments in holdings (shares) of undertakings within the group	054	0	0
2 Investments in other securities of undertakings within the group	055	0	0
3 Loans, deposits, etc. to undertakings within the group	056	0	0
4 Investments in holdings (shares) of companies linked by virtue of participating interests	057	0	0
5 Investment in other securities of companies linked by virtue of participating interests	058	0	0
6 Loans, deposits etc. to companies linked by virtue of participating interests	059	0	0
7 Investments in securities	060	32.997.449	31.099.903
8 Loans, deposits, etc. given	061	13.328.313	1.811.343
9 Other financial assets	062	0	0
IV CASH AT BANK AND IN HAND	063	477.487.038	484.019.003
D ) PREPAID EXPENSES AND ACCRUED INCOME	064	6.787.111	11.169.997
E) TOTAL ASSETS (ADP 001+002+037+064)	065	1.203.655.481	1.256.200.935
OFF-BALANCE SHEET ITEMS LIABILITIES	066	0	0
A) CAPITAL AND RESERVES (ADP 068 to	067	404.042.075	387.954.950
I INITIAL (SUBSCRIBED) CAPITAL	068	133.165.000	133.165.000
II CAPITAL RESERVES	069	0	0
III RESERVES FROM PROFIT (ADP 071+072-073+074+075)	070	30.748.156	37.037.556
1 Legal reserves	071	6.658.250	6.658.250
2 Reserves for treasury shares	072	36.511.836	46.438.936
3 Treasury shares and holdings (deductible item)	073	-12.421.930	-16.059.630
4 Statutory reserves	074	0	0
5 Other reserves	075	0	0
IV REVALUATION RESERVES	076	0	0
V FAIR VALUE RESERVES AND OTHER (ADP 078 to 082) 1 Financial assets at fair value through other comprehensive income	077	-396.587	-454.164
(i.e. available for sale)	078	0	0
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	0	0
5 Exchange differences arising from the translation of foreign	081	0	0
	082	-396.587	-454.164
operations (consolidation) VI RETAINED PROFIT OR LOSS BROUGHT FORWARD (ADP 084-	083	63.177.357	149.829.953
085) 1 Retained profit	084	63.177.357	149.829.953
2 Loss brought forward	085	0	0
VII PROFIT OR LOSS FOR THE BUSINESS YEAR (ADP 087-088)	086	177.348.149	68.376.605
1 Profit for the business year	087	177.348.149	68.376.605
2 Loss for the business year	088	0	0
VIII MINORITY (NON-CONTROLLING) INTEREST	089	0	0
B) PROVISIONS (ADP 091 to 096) 1 Provisions for pensions, termination benefits and similar	090	8.597.453	8.142.934
obligations	091	8.597.453	8.142.934
2 Provisions for tax liabilities	092	0	0
3 Provisions for ongoing legal cases	093	0	0
4 Provisions for renewal of natural resources	094	0	0
5 Provisions for warranty obligations	095	0	0
6 Other provisions	096	0	0
C) LONG-TERM LIABILITIES (ADP 098 to 108)	097	51.150.940	43.354.138
1 Liabilities to undertakings within the group	098	0	0
2 Liabilities for loans, deposits, etc. of undertakings within the group	099	0	0
3 Liabilities to companies linked by virtue of participating interests	100	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	0	0
7 Liabilities for advance payments	103	50.705.458	42.959.649
	104	0	0
8 Liabilities to suppliers	105	0	0
9 Liabilities for securities	106	0	0
10 Other long-term liabilities	107	445.482	394.489
11 Deferred tax liability	108	0	0
D) SHORT-TERM LIABILITIES (ADP 110 to 123)	109	381.934.073	455.201.062
1 Liabilities to undertakings within the group	110	0	0
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	12.628.233	58.888.217
participating interests	113	0	0
5 Liabilities for loans, deposits etc.	114	0	0
6 Liabilities to banks and other financial institutions	115	32.870.157	30.580.654
7 Liabilities for advance payments	116	52.527.993	36.966.041
8 Liabilities to suppliers	117	94.629.186	112.813.585
9 Liabilities for securities	118	0	0
10 Liabilities to employees	119	132.549.730	77.963.833
11 Taxes, contributions and similar liabilities	120	43.127.961	42.239.245
12 Liabilities arising from the share in the result	121	0	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	13.600.813 357.930.940	11.100.399 361.547.851
F) TOTAL – LIABILITIES (ADP 067+090+097+109+124)	125	1.203.655.481	1.256.200.935
G) OFF-BALANCE SHEET ITEMS	126	0	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 1	code	Cumulative	Quarter	Cumulative	Quarter
I OPERATING INCOME (ADP 002 to 006)	2	3	4	5	6
	001	1.022.814.964	572.883.011	1.081.304.928	546.440.586
1 Income from sales with undertakings within the group	002	0	0	0	0
2 Income from sales (outside group)	003	1.014.216.818	568.358.401	1.062.300.939	536.230.680
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	0	0	0	0
5 Other operating income (outside the group)	006	8.598.146	4.524.610	19.003.989	10.209.906
II OPERATING EXPENSES (ADP 08+009+013+017+018+019+022+029)	007	903.521.249	498.855.913	1.004.432.149	539.131.022
1 Changes in inventories of work in progress and finished goods	008	-38.872.990	-14.725.563	6.752.421	26.956.464
2 Material costs (ADP 010 to 012)	009	448.684.343	259.148.822	455.108.612	236.193.481
a) Costs of raw materials and consumables	010	149.465.083	83.188.928	176.669.900	74.224.589
b) Costs of goods sold	011	0	0	0	0
c) Other external costs	012	299.219.260	175.959.894	278.438.712	161.968.892
3 Staff costs (ADP 014 to 016)	013	433.176.752	220.154.020	474.498.198	240.418.832
a) Net salaries and wages	014	270.318.476	137.496.306	292.182.971	149.412.656
b) Tax and contributions from salary costs	015	113.832.341	57.013.491	128.698.969	63.370.930
c) Contributions on salaries	016	49.025.935	25.644.223	53.616.258	27.635.246
4 Depreciation	017	28.607.464	14.249.711	25.478.246	12.219.880
5 Other costs	018	23.551.319	13.040.581	37.875.962	19.890.917
6 Value adjustments (ADP 020+021)	019	1.005.534	344.513	0	0
a) fixed assets other than financial assets	020	0	0	0	0
b) current assets other than financial assets	021	1.005.534	344.513	0	0
7 Provisions (ADP 023 to 028)	022	6.819.818	6.210.558	3.332.829	2.099.038
a) Provisions for pensions, termination benefits and similar	023	2.887.388	2.734.355	3.257.625	2.080.368
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	578.115	121.888	75.204	18.670
f) Other provisions	028	3.354.315	3.354.315	0	0
8 Other operating expenses	029	549.009	433.271	1.385.881	1.352.410
III FINANCIAL INCOME (ADP 031 to 040)	030	2.416.437	-1.093.480	5.869.491	3.418.228
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	035	0	-29.803	0	0
with undertakings within the group 6 Income from other long-term financial investments and loans	036	0	0	0	0
7 Other interest income	037	1.356.848	986.444	3.040.863	2.687.525
8 Exchange rate differences and other financial income	038	813.598	-2.108.349	2.828.628	730.703
9 Unrealised gains (income) from financial assets	039	0	0	0	0
10 Other financial income	040	245.991	58.228	0	0
IV FINANCIAL EXPENSES (ADP 042 to 048)	041	883.456	545.497	2.698.345	1.718.607
1 Interest expenses and similar expenses with undertakings within the	042	0	-29.658	0	0
group 2 Exchange rate differences and other expenses from operations with	043	18.466	18.466	0	0
undertakings within the group 3 Interest expenses and similar expenses	044	864.990	556.689	800.800	469.211
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	1.897.545	1.249.396
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	1.025.231.401	571.789.531	1.087.174.419	549.858.814
X TOTAL EXPENDITURE (ADP 007+041+051 + 052)	054	904.404.705	499.401.410	1.007.130.494	540.849.629
XI PRE-TAX PROFIT OR LOSS (ADP 053-054)	055	120.826.696	72.388.121	80.043.925	9.009.185
1 Pre-tax profit (ADP 053-054)	056	120.826.696	72.388.121	80.043.925	9.009.185
2 Pre-tax loss (ADP 054-053)	057	0	0	0	0
XII INCOME TAX	058	19.383.404	11.780.831	11.667.320	294.420
XIII PROFIT OR LOSS FOR THE PERIOD (ADP 055-059)	059	101.443.292	60.607.290	68.376.605	8.714.765
1 Profit for the period (ADP 055-059)	060	101.443.292	60.607.290	68.376.605	8.714.765
2 Loss for the period (ADP 059-055) DISCONTINUED OPERATIONS (to be filled in by undertakings subject to IFRS only with discontinued operations)	061	0	0	0	0
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) APPENDIX to the P&L (to be filled in by undertakings that draw up consolidated annual financial statements)	074	0	0	0	0
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 STATEMENT OF OTHER COMPRHENSIVE INCOME (to be filled in by undertakings subject to IFRS)	077	0	0	0	0
I PROFIT OR LOSS FOR THE PERIOD II OTHER COMPREHENSIVE INCOME/LOSS BEFORE TAX	078	101.443.292	60.607.290	68.376.605	8.714.765
(ADP 80+ 87)	079	-200.045	-190.528	-57.577	-123.429
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 2 Gains or losses from subsequent measurement of equity	081	0	0	0	0
instruments at fair value through other comprehensive income 3 Fair value changes of financial liabilities at fair value through	082	0	0	0	0
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	-200.045	-190.528	-57.577	-123.429
1 Exchange rate differences from translation of foreign operations 2 Gains or losses from subsequent measurement of debt securities at	088	-200.045	-190.528	-57.577	-123.429
fair value through other comprehensive income	089	0	0	0	0
3 Profit or loss arising from effective cash flow hedging	090	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-	097	-200.045	-190.528	-57.577	-123.429
086 - 096) VI COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (ADP	098	101.243.247	60.416.762	68.319.028	8.591.336
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	101.243.247	60.416.762	68.319.028	8.591.336
1 Attributable to owners of the parent	100	101.243.247	60.416.762	68.319.028	8.591.336
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	120.826.696 27.888.649	80.043.925 24.736.368
a) Depreciation	002 003	28.607.464	25.478.246
b) Gains and losses from sale and value adjustment of fixed tangible and intangible assets	004	-78.442	-247.651
c) Gains and losses from sale and unrealised gains and losses and value
adjustment of financial assets	005	-245.991	1.897.545
d) Interest and dividend income e) Interest expenses	006	-1.356.848 835.805	-3.040.863 794.072
f) Provisions	007 008	0
g) Exchange rate differences (unrealised)	009	-474.755	-2.666.767
h) Other adjustments for non-cash transactions and unrealised gains and losses	010	601.416	2.521.786
I Cash flow increase or decrease before changes in working capital (ADP 001+002)	011	148.715.345	104.780.293
3 Changes in the working capital (ADP 013 to 016)	012	-5.378.922	-78.249.305
a) Increase or decrease in short-term liabilities	013	173.988.108	-23.195.722
b) Increase or decrease in short-term receivables	014	-121.447.261	-44.583.931
c) Increase or decrease in inventories	015	-59.592.343	-7.514.718
d) Other increase or decrease in working capital	016	1.672.574	-2.954.934
II Cash from operations (ADP 011+012) 4 Interest paid	017 018	143.336.423 -1.063.360	26.530.988 -947.426
5 Income tax paid	019	-463.552	-5.124.530
A) NET CASH FLOW FROM OPERATING ACTIVITIES (ADP 017 to 019)	020	141.809.511	20.459.032
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
3 Interest received	023	869.372	2.943.885
4 Dividends received	024	0
5 Cash receipts from repayment of loans and deposits	025	3.221.666	12.900.523
6 Other cash receipts from investment activities	026	1.324.521
III Total cash receipts from investment activities (ADP 021 to 026)	027	5.446.737	16.037.654
1 Cash payments for the purchase of fixed tangible and intangible assets	028	-6.446.652	-3.772.488
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	031	0	0
5 Other cash payments from investment activities IV Total cash payments from investment activities (ADP 028 to 032)	032 033	0 -6.446.652	0 -3.772.488
B) NET CASH FLOW FROM INVESTMENT ACTIVITIES (ADP 027 +033)	034	-999.915	12.265.166
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)	039	0	0
1 Cash payments for the repayment of credit principals, loans and other 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 4 Cash payments for the redemption of treasury shares and decrease in	042	-11.392.174	-10.935.417
initial (subscribed) capital	043	0	-3.710.600
5 Other cash payments from financing activities	044	0	0
VI Total cash payments from financing activities (ADP 040 to 044)	045	-18.439.791	-27.039.862
C) NET CASH FLOW FROM FINANCING ACTIVITIES (ADP 039 +045)	046	-18.439.791	-27.039.862
1 Unrealised exchange rate differences in respect of cash and cash equivalents	047	-316.095	847.629
D) NET INCREASE OR DECREASE IN CASH FLOWS (ADP 020+034+046+047)	048	122.053.710	6.531.965
E) CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD	049	281.055.836	477.487.038
F) CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD(ADP 048+049)	050	403.109.546	484.019.003

for the period 01.01.2022 to 30.06.2022 STATEMENT OF CASH FLOWS - direct method

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	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

in HRK

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 (deductible item)		Statutory reserves Other reserves	Revaluation reserves	Attributable to owners of the parent Fair value of financial assets through other comprehensive income (available	Cash flow hedge - effective portion	Hedge of a net investment in a foreign operation - effective portion	Other fair value reserves	Exchange rate differences from translation of foreign operations	Retained profit / loss brought forward	Profit/loss for the business year	Total attributable to owners of the parent	Minority (non controlling) interest	Total capital and reserves
1	2	3	4	5	6	7	8	9	10	for sale) 11	12	13	14	15	16	17	18 (3 to 6 - 7	19	20 (18+19)
Previous period																	+ 8 to 17)
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	-281.331	98.394.647	94.539.989	345.873.801	0	345.873.801
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	-281.331	98.394.647	94.539.989	345.873.801	0	345.873.801
5 Profit/loss of the period	05	0		0 0	0	0		0 0		0 0	0	0	0	0	0	177.348.149	177.348.149	0	177.348.149
6 Exchange rate differences from translation of foreign operations	06	0		0 0	0	0		0 0		0 0	0	0	0	-115.256	0	0	-115.256	0	-115.256
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	0	0
8 Gains or losses from subsequent measurement of financial assets at fair value	08	0		0 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	09	0		0 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	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	19	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	20 21	0 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	-109.162.418 4.405.139	0 0	-109.162.418 4.405.139	0 0	-109.162.418 4.405.139
22 Transfer to reserves according to the annual schedule	22	0		0 0	0	0		0 0		0 0	0	0	0	0	94.539.989	-94.539.989	0	0	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	-396.587	63.177.357	177.348.149	404.042.075	0	404.042.075
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	-115.256	0	0	-115.256	0	-115.256
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	-115.256	0	177.348.149	177.232.893	0	177.232.893
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	-35.217.290	-94.539.989	-119.064.619	0	-119.064.619
Current period
1 Balance on the first day of the current business year	28	133.165.000		0 6.658.250	36.511.836	12.421.930		0 0		0 0	0	0	0	-396.587	63.177.357	177.348.149	404.042.075	0	404.042.075
2 Changes in accounting policies 3 Correction of errors	29 30	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 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	-396.587	63.177.357	177.348.149	404.042.075	0	404.042.075
5 Profit/loss of the period	32	0		0 0	0	0		0 0		0 0	0	0	0	0	0	68.376.605	68.376.605	0	68.376.605
6 Exchange rate differences from translation of foreign operations	33	0		0 0	0	0		0 0		0 0	0	0	0	-57.577	0	0	-57.577	0	-57.577
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	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	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	0	0
10 Profit or loss arising from effective hedge of a net investment in a foreign
operation 11 Share in other comprehensive income/loss of companies linked by virtue of	37	0		0 0	0	0		0 0		0 0	0	0	0	0	0	0	0	0	0
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 40	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
14 Tax on transactions recognised directly in equity	41	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	45	0		0 0	10.000.000	3.710.600		0 0		0 0	0	0	0	0	-10.000.000	0	-3.710.600	0	-3.710.600
19 Payments from members/shareholders 20 Payment of share in profit/dividend	46	0		0 0	0	0		0 0		0 0	0	0	0	0	0	0	0	0	0
21 Other distributions and payments to members/shareholders	47 48	0 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	-84.649.088 3.953.535	0 0	-84.649.088 3.953.535	0 0	-84.649.088 3.953.535
22 Carryforward per annual plane	49	0		0 0	0	0		0 0		0 0	0	0	0	0	177.348.149	-177.348.149	0	0	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)	51	133.165.000		0 6.658.250	46.438.936	16.059.630		0 0		0 0	0	0	0	-454.164	149.829.953	68.376.605	387.954.950	0	387.954.950
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	-57.577	0	0	-57.577	0	-57.577
II COMPREHENSIVE INCOME OR LOSS FOR THE CURRENT PERIOD (ADP 32	53	0		0 0	0	0		0 0		0 0	0	0	0	-57.577	0	68.376.605	68.319.028	0	68.319.028
do 52) 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	86.652.596	-177.348.149	-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 2. 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

3. 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 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 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

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

2. 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

3. 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

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

a) b) Explanation of business events relevant to understanding changes in the statement of financial position and financial performance are published in Press The financial statements have been prepared in accordance with International Financial Reporting Standards adopted by the European Union (IFRSs), on

www.ericsson.hr/en/reports c)

e)

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.

Segment reporting
	Networks	30.06.2022 30.06.2021	Digital Services			Managed Services	Other		Unallocated 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		Total
	'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 Operating profit	521.270 82.640	468.264 86.194	286.566 3.082	282.250 29.957	252.728 15.343	260.211 25.825	1.737 133	3.492 212	0 -24.325	-22.894	0 1.062.301 1.014.217 76.873	119.294
Transactions with related parties:		30.06.2022	30.06.2021
		HRK 000	HRK 000
Sales		504.755	455.307
Purchases		124.098	143.107
Balances with related parties
		30.06.2022	31.12.2021
		HRK 000	HRK 000
Receivable		116.370	76.808
Payable		58.888	12.628
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
Accounting policies have not been changed in relation to previous reporting period.
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 Group has no commitments concerning pensions that are in scope of IAS 19.
4.
In the reporting period there were no individual items of income or expenditure of exceptional size or incidence.
5. The Group has no debt falling due after more than five years.
At the balance sheet date, the Group does not have debts covered by valuable securities/insurance. 6.
The average number of employees during the reporting period is 3494 (Q2 2021: 3306). The Group 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.
9.
The Group has no participating interest. 10.
There were no shares subscribed during the financial year within the limits of the authorised capital.
11. The Group has no participation certificates, convertible debentures, warrants, options or similar securities or rights.
12.
The Group has no shares in companies having unlimited liability. 13. and 14.
The company Telefonaktiebolaget LM Ericsson (Sweden, Torshamnsgatan 21, SE-164 83 Stockholm) prepares the consolidated financial statements for the
15. Those consolidated reports are available at www.ericsson.com/en/investors/financial-reports.
16. 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
17.
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
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 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, 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.
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 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, within the category Current liabilities in Statement of Financial position total amount of Borrowings and Lease liabilities are shown under AOP

115 Liabilities to bank and other 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.