Ericsson Nikola Tesla d.d.

Earnings Release • Oct 27, 2022

PRESS INFO October 27, 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 the first nine months of 2022

Highlights:

• Sales revenue: MHRK 1,545.8
• Gross margin: 9.0%
• Operating profit: MHRK 102.6
• Profit before tax: MHRK 107.8
• Net profit: MHRK 79.3
• Cash flow from operating activities: MHRK 64.8

Gordana Kovačević, President of Ericsson Nikola Tesla, commented:

"In the first nine months of 2022, we have continued the implementation of many projects in the domestic and export markets and have achieved solid results with sales revenue of more than 1.5 billion HRK. As well as in the previous quarters, Q3 was marked by a complex geopolitical and economic environment caused by the war in Ukraine, inflationary pressures in the form of rising prices of labor, energy and materials, disruptions in supply chains, as well as the insufficient number of ICT experts. Despite all the challenges, we have continued a stable business performance, and recorded a slight increase in sales revenue compared to the same period of the excellent 2021, because of revenue growth in the operator segment in the neighboring markets and a continuous growth of services to Ericsson. This offset lower revenue in the domestic market, as well as decline in revenue in Belarus due to sanctions.

In the domestic market, with the strategic partners Hrvatski Telekom and A1 Hrvatska, we have continued the implementation of 5G technology and the related infrastructure. Due to negative global trends, such as rising prices of electricity and inflation, the operators had adjusted the investment dynamics, which reflected on our sales revenue. In the segment Digital Society, we have signed several significant contracts with the Ministry of Justice and Public Administration, State Geodetic Administration, Ministry of the Interior, and the City of Split.

In the neighboring markets, we have continued a quality cooperation with our long-term customers, HT Mostar, Crnogorski Telekom and IPKO on the expansion and modernization of their telecommunication networks. I would like to highlight that several days ago we have also signed a five-year agreement that includes activities on the

PRESS INFO October 27, 2022

introduction of 5G technology across Montenegro, and the modernization of the entire radio network of Crnogorski Telekom, by which a long-term successful cooperation continues. In order to better position ourselves and at the same time reduce the impact of crisis on business performance, we have been strongly focused on the requirements of the existing, as well as the potential new customers.

The delivery of services to Ericsson have been continuously growing, and significantly contribute to the financial stability of the Group. This is the result of quality, knowledge and innovativeness of our teams and individuals in Research and Development (R&D) Center and expert centers for Customer Solutions and Services, Digital Society and IT & Test Environment. At the regular semi-annual R&D Management Business Review meeting, the excellence of our R&D Center in all business segments was once again confirmed, which strategically positions us in the global organization, and opens new opportunities. We are proud that Ericsson Nikola Tesla has the biggest number of software designers in Croatia, as many as 1,800 of them, and we are the country's leading company in terms of software exports and the largest research and development center with the potential for further growth.

In regard to key performance indicators, at Group level sales revenue increased by 0.8% year-over-year. Gross margin decreased to 9.0%, primarily due to sanctions in Belarus, as well as the increase of labor costs and rising prices of energy, raw materials and materials, while operating profit decreased by 22.4%, amounting to MHRK 102.6. If we exclude the one-time impact of the termination of eHealth implementation project in Belarus, gross margin is 10.7% (first nine months 2021: 11.5%), while operating profit decreased by 2.2% year-over-year, amounting to MHRK 129.3, which indicates that our exceptional effort have enabled us to secure the company's stable business performance. A positive cash flow from operating activities was realized, amounting to MHRK 64.8, which is in line with expectations, considering the market environment. We concluded the end of the third quarter with a healthy balance sheet, with equity ratio of 34.7%. Cash and cash equivalents, including short-term financial assets, at the end Q3, amounted to MHRK 462.6 (40.0% of the total assets).

In September, we marked 40 years of successful business operations of Ericsson Nikola Tesla's site in Split that employs almost 700 experts. Most of them work on the development of the latest solutions in R&D center, and along with them, there are also experts for Customer Solutions and Services, Digital Society and IT & Test Environment. We can proudly say that we have the biggest research and development center in Dalmatia, which is included in the development of the state-of-the-art technologies.

During Q3, Ericsson Nikola Tesla held its 21st Summer Camp, where approximately fifty students, with the support of their mentors, worked on projects related to Big Data domain (Augmentative Reality/XR, Digital Twin, IoT, Security, AI, Quantum computing, ML/Speech recognition, eHealth, e-Environment). Over the years, Summer Camp has become a recognized and respected brand that represents a successful model of cooperation between the economy and the academic community, which enables students to work on innovative high-tech projects, through which we contribute to raise the quality of education. We believe that also among the participants of this year's Summer Camp, there will be those who will become our employees and together with us, continue to build an innovative organizational culture of high performance.

During 2022, we hired more than 200 new employees who, with the quality support from their mentors, are quickly included in the company's business processes.

At the official ceremony of the Croatian Index of Sustainability (HRIO) Awards, Ericsson Nikola Tesla won the annual award for sustainable corporate governance. This award confirms our practice of integrating sustainable development in the decision-making system, and thus manage the impact of our business on the society and the environment. Furthermore, we have also won the ECO Lider Invest recognition for the investment in the new Data Center. This investment reflects our strategy and focus on sustainable business, since by switching to the new

infrastructure of the Data Center, we have additionally reduced the carbon footprint and energy consumption, while at the same time increasing efficient management and flexibility for our users.

Despite the challenging geopolitical and economic environment, we believe that our technology leadership in 5G, innovative solutions in the Digital Society segment and the quality of our experts, make us ready for future challenges and new business opportunities. We are committed to further strengthening the company's culture based on integrity, ethics and compliance management. In order to finalize 2022 in line with the plan and to prepare well for the next year, we remain strongly focused on the realization of all contractual obligations, cost and operational efficiency, and risk management."

Financial highlights for the Group:

• Sales revenue amounted to MHRK 1,545.8 (first nine months 2021: MHRK 1,533.0), up by 0.8% yearover-year, as a result of sales increase in the operator segment in the neighboring markets and a continuous increase in services to Ericsson. In total sales revenue, the domestic market accounted for 41.4%, services to Ericsson 47.9%, while other export markets accounted for 10.7%. In the company's sales revenue, the share of total export accounted for 58.6%.
• Sales in the Networks segment amounted to MHRK 745.2 (first nine months 2021: MHRK 671.5), Digital Services segment amounted to MHRK 421.1 (first nine months 2021: MHRK 407.1), Managed Services segment amounted to MHRK 376.9 (first nine months 2021: MHRK 449.4), and segment Other amounted to MHRK 2.6 (first nine months 2021: MHRK 5.0).
• Gross profit was MHRK 138.6 (first nine months 2021: MHRK 176.8), down by 21.6% 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 labor costs and the increase in the prices of energy, raw materials and materials. Gross margin decreased to 9.0% (first nine months 2021: 11.5%).
• Selling and administrative expenses increased by 3.9% year-over-year, amounting to MHRK 64.6 (first nine months 2021: MHRK 62.2). The share of selling and administrative expenses in sales revenue was 4.2% (first nine months 2021: 4.1%).
• Operating profit amounted to MHRK 102.6, down by 22.4% year-over-year (first nine months 2021: MHRK 132.2) due to lower gross profit.
• Gain from financial activities amounted to MHRK 5.2 (first nine months 2021: MHRK 3.2), mainly due to higher interest income and positive exchange differences.
• Profit before tax decreased by 20.4% year-over-year to MHRK 107.8 (first nine months 2021: MHRK 135.4).
• Net profit amounted to MHRK 79.3 (first nine months 2021: MHRK 114.7), down by 30.9% year-over-year. Return on Sales (ROS) was 5.1% (first nine months 2021: 7.5%).
• Cash flow from operating activities amounted to MHRK 64.8 (first nine months 2021: MHRK 235.3) due to lower cash collection from certain customers in the domestic and export markets. However, it is in line with the expectations, taking into consideration the market environment.

PRESS INFO

October 27, 2022

• Working Capital Efficiency, expressed in WCD, was 12 days (first nine months 2021: 8 days), and excluding services to Ericsson, Working Capital Efficiency was 31 days (first nine months 2021: 22 days). The number of WCD is impacted by the implementation dynamics of the ongoing projects and disruptions in supply chains.
• Cash and cash equivalents, including short term financial assets, as at September 30, 2022, amounted to MHRK 462.6 (40.0% of the total assets), while at the end of 2021, they amounted to MHRK 510.5 (42.4% of the total assets), and are in line with the planned regular activities.
• The Group has a solid balance sheet with the total assets of MHRK 1,155.2 as at September 30, 2022, down by 4% compared to the end of 2021, mainly due to the regular process of the rights of use assets depreciation, and somewhat lower cash and cash equivalents recorded at the day of the balance sheet (in the meantime, the dividend for 2021 was paid). Equity ratio was 34.7% (end of 2021: 33.6%).
• With related parties, the transactions were as follows: sales of products and services amounted to MHRK 740.9 (first nine months 2021: MHRK 645.9), while the procurement of products and services amounted to MHRK 173.9 (first nine months 2021: MHRK 203.3).
• As at September 30, 2022, balances outstanding with related parties were as follows: receivables amounted to MHRK 107.7 (end of 2021: MHRK 76.8), and payables amounted to MHRK 60.8 (end of 2021: MHRK 12.6).

Business situation in major markets

In the domestic market, sales revenue amounted to MHRK 640.3 (first nine months 2021: MHRK 729.8), down by 12.3% year-over-year.

The activities related to the design and build of the passive part of FTTH (Fiber To The Home) networks, based on the three contracts signed with Hrvatski Telekom, co-financed by the European Structural and Investment Funds, are ongoing as planned. In regard to build and monitoring of telecommunications infrastructure, monitoring of telecommunications network, field maintenance of fixed and mobile telecommunications infrastructure, and expansion and modernization of Hrvatski Telekom's mobile network, the realization based on the signed multi-year agreements, continues.

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

Furthermore, with A1 Hrvatska, we have signed three contracts for the delivery of radio access active equipment for the build of mobile broadband access network of the next generation in areas without broadband infrastructure and without sufficient market interest for investments. The project is implemented within the "Build of the Next Generation Networks (NGN) / Next Generation Access Networks (NGA) in NGA white areas", co-financed by the Operational Programme Competitiveness and Cohesion funds.

In the Digital Society segment, with the Ministry of Justice and Public Administration we have contracted the upgrade of the information system of land registry and cadaster, including a digital assistant. With the State Geodetic Administration, we have contracted the basic and expanded maintenance of the Infrastructure Cadaster System, based on the two-year frame agreement. In cooperation with the Ministry of the Interior, the maintenance PRESS INFO October 27, 2022

of the state border monitoring system of the Republic of Croatia continues (Green Border). With the City of Split, the activities have been contracted on the communication infrastructure relocation.

In export markets (excluding services to Ericsson) sales revenue amounted to MHRK 164.7 (first nine months 2021: MHRK 157.0), up by 4.9% year-over-year.

Unstable political and economic environment continues and impacts the realization of contracted activities in export markets, as well as new business opportunities.

In neighboring countries, during Q3, we have continued a quality cooperation with the operators HT Mostar, Crnogorski Telekom and IPKO, on the expansion and modernization of their telecommunication networks.

In Belarus, we have terminated the contract for the project of implementation of eHealth of the Republic of Belarus and have also stopped the signing of the already agreed new contracts. In line with the obtained timelimited permits from sanctions committees of the Republic of Croatia and the European Union, we are fulfilling certain obligations in the operator segment for the contracts that were signed before the EU's sanctions for Belarus came into force.

Services to Ericsson record sales revenue amounting to MHRK 740.8 (first nine months 2021: MHRK 646.2), up by 14.6% year-over-year.

The quality and innovativeness of our R&D Center in all business segments has once again been confirmed at the regular semi-annual R&D Management Business Review meeting, which creates prerequisites for further business development. In the business segment Networks, the development of main 5G features is ongoing as planned. In the business segment Mobile Switching Center preparations continued for the future consolidation of activities based on legacy systems, by engaging teams in both R&D and services work. Within the business segments Cloud and Unified Data Management, teams are working on critical features, progressing as planned.

The experts from the Customer Services and Solutions Center, 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 Austria, Belgium, Denmark, Finland, France, Greece, Ireland, Italy, Luxembourg, Hungary, Germany, the Netherlands, Norway, Poland, Romania, Switzerland, Sweden, the United Kingdom, Slovenia, Serbia, North Macedonia, the United States of America, Canada, Japan, Singapore, Indonesia, India, Iraq, Jordan, Libya, Pakistan, Bahrein, Saudi Arabia, Qatar, Mexico, Tahiti, 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. The work has also 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 the projects of test environment management 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 Nikola Tesla Group's employees and remote support to customers.

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

PRESS INFO

October 27, 2022

Other information

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

	Number of shares	% of share capital
Telefonaktiebolaget LM Ericsson	653,473	49.07
PBZ d.d. / Raiffeisen mandatory pension fund, B category	123,514	9.28
Erste & Steiermarkische Bank d.d. / PBZ Croatia osiguranje mandatory pension fund, B category	40,490	3.04
OTP banka d.d. / Erste Plavi mandatory pension fund, B category	27,618	2.07
Raiffeisenbank Austria d.d. / Raiffeisen voluntary pension fund	16,739	1.26
PBZ d.d. / custodian client account	10,388	0.78
OTP banka d.d. / OTP Index fund – open-end alternative investment fund with public offering	9,108	0.68
PBZ d.d. / The Bank of New York as Custodian	8,492	0.64
PBZ d.d. / Raiffeisen mandatory pension fund, A category	6,523	0.49
Ericsson Nikola Tesla d.d.	6,068	0.46
Other shareholders	429,413	32.23

Share price information in Q3 2022:

Highest (HRK)	Lowest (HRK)	Last (HRK)	Market cap. (in MHRK)
1,750.00	1,415.00	1,570.00	2,090.7

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 September 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 September 2022

	2022	2021
	HRK '000	HRK '000
Sales revenue	1.151.967	1.071.903
Cost of sales	-1.050.028	-944.595
Gross profit	__ 101.939	__ 127.309
Selling expenses	-28.330	-28.720
Administrative expenses	-28.749	-26.510
Other operating income	88.009	16.428
Impairment loss on financial assets	-375	-132
Operating profit	__ 132.494	__ 88.375
Finance income	__ 8.795	__ 4.519
Finance expense	-3.043	-859
Finance income/(expense), net	__ 5.752	__ 3.660
Profit before tax	__ 138.246	__ 92.035
Income tax	-23.384	-11.648
Profit for the year	__ 114.862	__ 80.387
Other comprehensive income	__ -	__ -
Total comprehensive income for the year	__ 114.862	__ 80.387
Earnings per share (HRK)	__ 87	__ 60

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

	2022	2021
	HRK '000	HRK '000
ASSETS
Non-current assets
Property, plant and equipment	121.575	129.380
Right of use assets	31.518	29.231
Intangible assets	778	1.080
Investments in subsidiaries	1.053	1.053
Loans and receivables	21.198	21.976
Deferred tax assets	12.555 __	12.555 __
Total non-current assets	188.677 __	195.275 __
Current assets
Inventories	92.114	89.048
Trade receivables	144.762	108.484
Receivables from related parties	111.912	80.178
Other receivables	5.645	36.236
Financial assets at fair value through profit or loss	30.814	32.997
Prepayments	6.218	6.335
Cash and cash equivalents	349.760	332.301
Total current assets	__ 741.225	__ 685.579
TOTAL ASSETS	__ 929.902	__ 880.854
	__	__
EQUITY AND LIABILITIES
Equity		133.165
Share capital Treasury shares	133.165	-12.421
Legal reserves	-10.825	6.658
Reserve for treasury shares	6.658	36.512
Retained earnings	40.538 165.427	139.322
	__	__
Total equity	334.963 __	303.236 __
Non-current liabilities
Borrowings	6.928	16.982
Lease liabilities	24.832	21.314
Other non-curent liabilities	260	442
Employee benefits	5.689	6.102 __
Total non-current liabilities	__ 37.709	44.840 __
Current liabilities	__
Payables to related parties	48.643	5.797
Borrowings	14.088	14.088
Trade and other payables	142.924	148.676
Income tax payable	18.873	4.103
Provisions	10.206	13.307
Accrued charges and deferred revenue	136.211	91.365
Contract liabilities	179.545	247.309
Lease liabilities	6.740	8.133
Total current liabilities	__ 557.230	__ 532.778
Total liabilities	__ 594.939	__ 577.618
TOTAL EQUITY AND LIABILITIES	__ 929.902	__ 880.854
	__	__

Ericsson Nikola Tesla d.d.

Statement of cash flows

for the period ended 30 September 2022

	HRK '000	HRK '000
Cash flows from operating activities
Profit before tax	138.246	92.035
	_	_
Adjustments for:
Depreciation and amortisation	27.969	34.483
Impairment losses and reversals	13	-126
Gain on sale of property, plant and equipment	-171	-15
Net loss/(gain) on remeasurement of financial assets	1.920	-229
Interest income	-3.674	-2.490
Dividend income	-57.493	-
Interest expense	1.176	807
Foreign exchange (gains)/losses, net	-3.921	-2.679
Share-based payments	5.892	2.285
Changes in working capital	_	_
In receivables	-54.310	-32.106
In inventories	-3.067	-37.550
In provisions	-3.515	1.259
In payables	18.709	107.634
Cash generated from operations	_ 67.774	_ 163.308
Interest paid	_ -856	_ -980
Income taxes paid	-7.181	-79
Net cash from operating activities	_ 59.737	_ 162.250
Cash flows from investing activities	_	_
Interest received	3.154	2.580
Dividends received	57.493	60
Proceeds from sale of property, plant and equipment	196	100
Purchases of property, plant and equipment, and intangible assets	-4.041	-9.311
Deposits given to financial institutions - net	12.901	-1.208
Net change of financial assets at fair value through profit and loss	-	1.325
Net cash used in investing activities	_ 69.704	_ -6.455
	_	_
Cash flows from financing activities
Repayment of borrowings	-17.596	-11.308
	-4.377	-3.240
Purchase of treasury shares	-84.701	-109.166
Dividends paid	-7.211	-8.912
Payment of lease liabilities	_	_
Net cash used in financing activities	-113.884	-132.625 _
Effects of exchange rate changes on cash and cash equivalents	_ 1.903	275
Net increase/(decrease) in cash and cash equivalents	_ 17.459	_ 23.445
Cash and cash equivalents at the beginning of the year	332.301	245.833
Cash and cash equivalents at the end of the year	_ 349.760	_ 269.278
	_	_

2022 2021

Annex 1
		ISSUER'S GENERAL DATA
Reporting period:		1.1.2022	to	30.9.2022
Year:		2022
Quarter:		3.
		Quarterly financial statements
egistration number (MB):	03272699	Issuer's home Member	State code:	HR
Entity's registration number (MBS):	0800002028
Personal identification number (OIB):	84214771175		LEI:	5299001W91BFWSUOVD63
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	2699
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
Bookkeeping firm:	No	(Yes/No)			No
	Contact person: Tatjana Ricijaš			(name of the bookkeeping firm)
	(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 30.09.2022

in HRK

Submitter: ERICSSON NIKOLA TESLA D.D.		Last day of the	At the reporting date
Item	ADP code	preceding business	of the current period
1	2	year 3	4
A) RECEIVABLES FOR SUBSCRIBED CAPITAL UNPAID	001	0	0
B) FIXED ASSETS (ADP 003+010+020+031+036)	002	195.275.284	188.676.929
I INTANGIBLE ASSETS (ADP 004 to 009) 1 Research and development	003 004	1.079.766 0	777.579 0
2 Concessions, patents, licences, trademarks, software and other rights	005	1.079.766	777.579
3 Goodwill	006	0	0
4 Advances for the purchase of intangible assets 5 Intangible assets in preparation	007 008	0 0	0 0
6 Other intangible assets	009	0	0
II TANGIBLE ASSETS (ADP 011 to 019) 1 Land	010 011	158.611.407 15.605.344	153.093.327 15.605.344
2 Buildings	012	81.500.293	80.481.008
3 Plant and equipment 4 Tools, working inventory and transportation assets	013 014	46.233.527 15.009.657	39.694.172 13.648.816
5 Biological assets	015	0	0
6 Advances for the purchase of tangible assets 7 Tangible assets in preparation	016 017	0 217.724	0 3.624.961
8 Other tangible assets	018	44.862	39.026
9 Investment property III FIXED FINANCIAL ASSETS (ADP 021 to 030)	019 020	0 17.533.295	0 16.877.960
1 Investments in holdings (shares) of undertakings within the group	021	1.052.798	1.052.798
2 Investments in other securities of undertakings within the group 3 Loans, deposits, etc. to undertakings within the group	022 023	0 48.531	0 48.596
4. Investments in holdings (shares) of companies linked by virtue of	024	0	0
participating interests 5 Investment in other securities of companies linked by virtue of
participating interests 6 Loans, deposits etc. to companies linked by virtue of participating	025	0	0
interests	026	0	0
7 Investments in securities 8 Loans, deposits, etc. given	027 028	0 16.431.966	0 15.776.566
9 Other investments accounted for using the equity method	029	0	0
10 Other fixed financial assets IV RECEIVABLES (ADP 032 to 035)	030 031	0 5.495.745	0 5.372.992
1 Receivables from undertakings within the group	032	0	0
2 Receivables from companies linked by virtue of participating interests	033	0	0
3 Customer receivables	034	5.127.139	5.011.361
4 Other receivables V DEFERRED TAX ASSETS	035 036	368.606 12.555.071	361.631 12.555.071
C) CURRENT ASSETS (ADP 038+046+053+063)	037	679.244.968	735.007.076
I INVENTORIES (ADP 039 to 045) 1 Raw materials and consumables	038 039	89.047.839 0	92.114.347 16.312.276
2 Work in progress	040	89.047.839	75.802.071
3 Finished goods 4 Merchandise	041 042	0 0	0 0
5 Advances for inventories	043	0	0
6 Fixed assets held for sale 7 Biological assets	044 045	0 0	0 0
II RECEIVABLES (ADP 047 to 052)	046	211.581.418	260.518.183
1 Receivables from undertakings within the group 2 Receivables from companies linked by virtue of participating	047	5.786.039	5.497.182
interests 3 Customer receivables	048	74.392.078	106.414.812
4 Receivables from employees and members of the undertaking	049 050	108.484.202 0	144.761.333 0
5 Receivables from government and other institutions 6 Other receivables	051 052	4.496.122 18.422.977	301.739 3.543.117
III CURRENT FINANCIAL ASSETS (ADP 054 to 062)	053	46.314.419	32.614.294
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	059	0	0
interests 7 Investments in securities	060	32.997.449	30.814.294
8 Loans, deposits, etc. given 9 Other financial assets	061 062	13.316.970 0	1.800.000 0
IV CASH AT BANK AND IN HAND	063	332.301.292	349.760.252
D ) PREPAID EXPENSES AND ACCRUED INCOME E) TOTAL ASSETS (ADP 001+002+037+064)	064 065	6.334.220 880.854.472	6.218.077 929.902.082
OFF-BALANCE SHEET ITEMS	066	0	0
LIABILITIES A) CAPITAL AND RESERVES (ADP 068 to	067	303.235.757	334.962.872
I INITIAL (SUBSCRIBED) CAPITAL	068	133.165.000	133.165.000
II CAPITAL RESERVES III RESERVES FROM PROFIT (ADP 071+072-073+074+075)	069 070	0 30.748.156	0 36.371.186
1 Legal reserves	071	6.658.250	6.658.250
2 Reserves for treasury shares 3 Treasury shares and holdings (deductible item)	072 073	36.511.836 -12.421.930	40.537.606 -10.824.670
4 Statutory reserves	074	0	0
5 Other reserves IV REVALUATION RESERVES	075 076	0 0	0 0
V FAIR VALUE RESERVES AND OTHER (ADP 078 to 082)	077	0	0
1 Financial assets at fair value through other comprehensive income (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	080 081	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-
085) 1 Retained profit	083	24.115.606	50.565.014
2 Loss brought forward	084 085	24.115.606 0	50.565.014 0
VII PROFIT OR LOSS FOR THE BUSINESS YEAR (ADP 087-088) 1 Profit for the business year	086 087	115.206.995 115.206.995	114.861.672 114.861.672
2 Loss for the business year	088	0	0
VIII MINORITY (NON-CONTROLLING) INTEREST B) PROVISIONS (ADP 091 to 096)	089 090	0 6.102.034	0 5.688.877
1 Provisions for pensions, termination benefits and similar
obligations	091	6.102.034	5.688.877
2 Provisions for tax liabilities 3 Provisions for ongoing legal cases	092 093	0 0	0 0
4 Provisions for renewal of natural resources	094	0	0
5 Provisions for warranty obligations 6 Other provisions	095 096	0 0	0 0
C) LONG-TERM LIABILITIES (ADP 098 to 108)	097	38.738.280	32.019.977
1 Liabilities to undertakings within the group 2 Liabilities for loans, deposits, etc. of undertakings within the group	098	0	0
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	101	0	0
participating interests 5 Liabilities for loans, deposits etc.	102	0	0
6 Liabilities to banks and other financial institutions 7 Liabilities for advance payments	103 104	38.295.580 0	31.759.706 0
8 Liabilities to suppliers	105	0	0
9 Liabilities for securities 10 Other long-term liabilities	106 107	0 442.700	0 260.271
11 Deferred tax liability	108	0	0
D) SHORT-TERM LIABILITIES (ADP 110 to 123) 1 Liabilities to undertakings within the group	109 110	246.632.690 1.821.627	272.095.500 4.036.745
2 Liabilities for loans, deposits, etc. of undertakings within the group	111	0	0
3 Liabilities to companies linked by virtue of participating interests	112	3.975.002	44.606.106
4 Liabilities for loans, deposits etc. of companies linked by virtue of participating interests	113	0	0
5 Liabilities for loans, deposits etc.	114	0	0
6 Liabilities to banks and other financial institutions 7 Liabilities for advance payments	115 116	22.221.607 52.527.993	20.828.534 30.621.489
8 Liabilities to suppliers	117	14.406.438	27.234.190
9 Liabilities for securities 10 Liabilities to employees	118 119	0 111.900.908	0 88.716.048
11 Taxes, contributions and similar liabilities 12 Liabilities arising from the share in the result	120 121	26.471.734 0	45.846.574 0
13 Liabilities arising from fixed assets held for sale	122	0	0
14 Other short-term liabilities	123	13.307.381	10.205.814
E) ACCRUALS AND DEFERRED INCOME F) TOTAL – LIABILITIES (ADP 067+090+097+109+124)	124 125	286.145.711	285.134.856
G) OFF-BALANCE SHEET ITEMS	126	880.854.472 0	929.902.082 0

for the period 01.01.2022 to 30.09.2022 STATEMENT OF PROFIT OR LOSS

in HRK

Submitter: ERICSSON NIKOLA TESLA D.D.
Item	ADP code		Same period of the previous year	Current period
1	2	Cumulative 3	Quarter 4	Cumulative 5	Quarter 6
I OPERATING INCOME (ADP 002 to 006) 1 Income from sales with undertakings within the group	001 002	1.088.331.019 4.493.501	336.289.911 -5.067.823	1.239.975.946 5.755.500	425.086.331 1.918.124
2 Income from sales (outside group)	003	1.067.409.734	333.776.606	1.146.211.010	354.826.794
3 Income from the use of own products, goods and services 4 Other operating income with undertakings within the group	004 005	0 1.361.469	0 462.382	0 59.342.128	0 58.148.055
5 Other operating income (outside the group)	006	15.066.315	7.118.746	28.667.308	10.193.358
II OPERATING EXPENSES (ADP 08+009+013+017+018+019+022+029) 1 Changes in inventories of work in progress and finished goods	007 008	999.956.403 -37.549.746	341.516.726 -8.007.774	1.107.482.223 13.249.858	351.247.329 3.715.781
2 Material costs (ADP 010 to 012)	009	395.013.247	126.128.874	408.921.562	115.508.183
a) Costs of raw materials and consumables b) Costs of goods sold	010 011	221.342.472 0	86.474.330 0	209.407.979 0	54.849.963 0
c) Other external costs	012	173.670.775	39.654.544	199.513.583	60.658.220
3 Staff costs (ADP 014 to 016) a) Net salaries and wages	013 014	568.150.063 349.330.275	198.496.960 120.372.186	607.337.913 369.609.456	208.162.789 125.402.086
b) Tax and contributions from salary costs c) Contributions on salaries	015 016	155.001.644 63.818.144	55.236.719 22.888.055	170.638.109 67.090.348	59.690.472 23.070.231
4 Depreciation	017	34.482.899	11.415.959	27.968.652	8.762.488
5 Other costs 6 Value adjustments (ADP 020+021)	018 019	28.564.186 1.357.399	10.309.429 353.308	45.745.115 0	14.297.465 0
a) fixed assets other than financial assets	020	0	0	0	0
b) current assets other than financial assets 7 Provisions (ADP 023 to 028)	021 022	1.357.399 9.806.573	353.308 3.235.754	0 3.884.464	0 637.079
a) Provisions for pensions, termination benefits and similar obligations b) Provisions for tax liabilities	023 024	5.927.404 0	3.187.735 0	3.792.549 0	619.896 0
c) Provisions for ongoing legal cases	025	0	0	0	0
d) Provisions for renewal of natural resources e) Provisions for warranty obligations	026 027	0 524.854	0 48.019	0 91.915	0 17.183
f) Other provisions	028	3.354.315	0	0	0
8 Other operating expenses III FINANCIAL INCOME (ADP 031 to 040)	029 030	131.782 4.519.425	-415.784 2.235.896	374.659 8.794.741	163.544 2.895.977
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	032	0	0	0	0
virtue of participating interests 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	0	13.090	2.840
6 Income from other long-term financial investments and loans	036	0	0	0	0
7 Other interest income 8 Exchange rate differences and other financial income	037 038	2.490.289 1.859.535	1.130.458 1.181.829	3.673.975 5.107.676	633.741 2.259.396
9 Unrealised gains (income) from financial assets	039	0	0	0	0
10 Other financial income IV FINANCIAL EXPENSES (ADP 042 to 048)	040 041	169.601 859.234	-76.391 310.225	0 3.042.523	0 570.473
1 Interest expenses and similar expenses with undertakings within the	042	30.511	3.128	5.630	1.457
group 2 Exchange rate differences and other expenses from operations with
undertakings within the group 3 Interest expenses and similar expenses	043 044	22.095 806.628	3.629 303.468	0 853.738	0 283.405
4 Exchange rate differences and other expenses	045	0	0	0	0
5 Unrealised losses (expenses) from financial assets 6 Value adjustments of financial assets (net)	046 047	0 0	0 0	0 0	0 0
7 Other financial expenses	048	0	0	2.183.155	285.611
V SHARE IN PROFIT FROM UNDERTAKINGS LINKED BY VRITUE OF PARTICIPATING INTERESTS	049	0	0	0	0
VI SHARE IN PROFIT FROM JOINT VENTURES VII SHARE IN LOSS OF COMPANIES LINKED BY VIRTUE OF	050	0	0	0	0
PARTICIPATING INTEREST	051	0	0	0	0
VIII SHARE IN LOSS OF JOINT VENTURES IX TOTAL INCOME (ADP 001+030+049 +050)	052 053	0 1.092.850.444	0 338.525.807	0 1.248.770.687	0 427.982.308
X TOTAL EXPENDITURE (ADP 007+041+051 + 052) XI PRE-TAX PROFIT OR LOSS (ADP 053-054)	054 055	1.000.815.637 92.034.807	341.826.951 -3.301.144	1.110.524.746 138.245.941	351.817.802 76.164.506
1 Pre-tax profit (ADP 053-054)	056	92.034.807	0	138.245.941	76.164.506
2 Pre-tax loss (ADP 054-053) XII INCOME TAX	057 058	0 11.647.726	-3.301.144 -2.512.745	0 23.384.269	0 15.209.611
XIII PROFIT OR LOSS FOR THE PERIOD (ADP 055-059)	059	80.387.081	-788.399	114.861.672	60.954.895
1 Profit for the period (ADP 055-059) 2 Loss for the period (ADP 059-055)	060 061	80.387.081 0	0 -788.399	114.861.672 0	60.954.895 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 2 Pre-tax loss on discontinued operations	063 064	0 0	0 0	0 0	0 0
XV INCOME TAX OF DISCONTINUED OPERATIONS 1 Discontinued operations profit for the period (ADP 062-065)	065 066	0 0	0 0	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) XVII INCOME TAX (ADP 058+065)	070 071	0 0	0 0	0 0	0 0
XVIII PROFIT OR LOSS FOR THE PERIOD (ADP 068-071) 1 Profit for the period (ADP 068-071)	072 073	0 0	0 0	0 0	0 0
2 Loss for the period (ADP 071-068)	074	0	0	0	0
APPENDIX to the P&L (to be filled in by undertakings that draw up consolidated annual financial statements) XIX PROFIT OR LOSS FOR THE PERIOD (ADP 076+077)	075	0	0	0	0
1 Attributable to owners of the parent	076	0	0	0	0
2 Attributable to minority (non-controlling) interest 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	80.387.081	-788.399	114.861.672	60.954.895
(ADP 80+ 87)	079	0	0	0	0
III Items that will not be reclassified to profit or loss (ADP 081 to 085)	080	0	0	0	0
1 Changes in revaluation reserves of fixed tangible and intangible assets	081	0	0	0	0
2 Gains or losses from subsequent measurement of equity instruments at fair value through other comprehensive income	082	0	0	0	0
3 Fair value changes of financial liabilities at fair value through	083	0	0	0	0
statement of profit or loss, attributable to changes in their credit risk 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) 1 Exchange rate differences from translation of foreign operations	087 088	0 0	0 0	0 0	0 0
2 Gains or losses from subsequent measurement of debt securities at	089	0	0	0	0
fair value through other comprehensive income 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 7 Changes in fair value of forward elements of forward contracts	093 094	0 0	0 0	0 0	0 0
8 Other items that may be reclassified to profit or loss	095	0	0	0	0
9 Income tax relating to items that may be reclassified to profit or loss	096	0	0	0	0
V NET OTHER COMPREHENSIVE INCOME OR LOSS (ADP 080+087-
086 - 096) VI COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (ADP	097	0	0	0	0
078+097)	098	80.387.081	-788.399	114.861.672	60.954.895
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	80.387.081	-788.399	114.861.672	60.954.895
1 Attributable to owners of the parent 2 Attributable to minority (non-controlling) interest	100 101	80.387.081 0	-788.399 0	114.861.672 0	60.954.895 0

STATEMENT OF CASH FLOWS - indirect method for the period 01.01.2022 to 30.09.2022

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 Pre-tax profit 2 Adjustments (ADP 003 to 010):	001	92.034.807	138.245.941
a) Depreciation	002 003	32.035.362 34.482.899	-28.289.963 27.968.652
b) Gains and losses from sale and value adjustment of fixed tangible and intangible assets	004	-14.987	-170.865
c) Gains and losses from sale and unrealised gains and losses and value adjustment of financial assets	005	-229.325	1.919.770
d) Interest and dividend income	006	-2.490.289	-61.167.159
e) Interest expenses	007	806.628	1.175.924
f) Provisions	008	0	0
g) Exchange rate differences (unrealised)	009	-2.678.739	-3.921.195
h) Other adjustments for non-cash transactions and unrealised gains and losses	010	2.159.175	5.904.910
I Cash flow increase or decrease before changes in working capital (ADP 001+002)	011	124.070.169	109.955.978
3 Changes in the working capital (ADP 013 to 016)	012	39.238.026	-42.181.790
a) Increase or decrease in short-term liabilities	013	107.634.463	18.709.287
b) Increase or decrease in short-term receivables	014	-32.105.779	-54.309.845
c) Increase or decrease in inventories d) Other increase or decrease in working capital	015	-37.549.746	-3.066.508
II Cash from operations (ADP 011+012)	016 017	1.259.088 163.308.195	-3.514.724 67.774.188
4 Interest paid	018	-979.981	-856.455
5 Income tax paid	019	-78.545	-7.180.920
A) NET CASH FLOW FROM OPERATING ACTIVITIES (ADP 017 to 019)	020	162.249.669	59.736.813
Cash flow from investment activities
1 Cash receipts from sales of fixed tangible and intangible assets	021	100.493	196.393
2 Cash receipts from sales of financial instruments	022	0	0
3 Interest received	023	2.579.979	3.153.952
4 Dividends received	024	59.724	57.493.183
5 Cash receipts from repayment of loans and deposits	025	0	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	4.064.719	73.744.051
1 Cash payments for the purchase of fixed tangible and intangible assets	028	-9.311.079	-4.040.550
2 Cash payments for the acquisition of financial instruments	029	0	0
3 Cash payments for loans and deposits for the period	030	-1.208.484	0
4 Acquisition of a subsidiary, net of cash acquired 5 Other cash payments from investment activities	031	0	0
IV Total cash payments from investment activities (ADP 028 to 032)	032 033	0 -10.519.563	0 -4.040.550
B) NET CASH FLOW FROM INVESTMENT ACTIVITIES (ADP 027 +033)	034	-6.454.844	69.703.501
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 4 Other cash receipts from financing activities	037 038	0 0	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	-11.308.105	-17.595.971
2 Cash payments for dividends	041	-109.165.903	-84.700.530
3 Cash payments for finance lease	042	-8.911.636	-7.210.866
4 Cash payments for the redemption of treasury shares and decrease in	043	-3.239.730	-4.376.970
initial (subscribed) capital 5 Other cash payments from financing activities	044		0
VI Total cash payments from financing activities (ADP 040 to 044)	045	-132.625.374	-113.884.337
C) NET CASH FLOW FROM FINANCING ACTIVITIES (ADP 039 +045)	046	-132.625.374	-113.884.337
1 Unrealised exchange rate differences in respect of cash and cash equivalents	047	275.231	1.902.983
D) NET INCREASE OR DECREASE IN CASH FLOWS (ADP 020+034+046+047)	048	23.444.682	17.458.960
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	269.277.752	349.760.252

STATEMENT OF CHANGES IN EQUITY for the period from 1.1.2022 to	30.9.2022																in HRK
										Attributable to owners of the parent
	ADP					Treasury shares				Fair value of financial assets	Hedge of a net		Exchange rate	Retained profit /		Total attributable to	Minority (non	Total capital and
Item	code	Initial (subscribed) capital		Capital reserves Legal reserves	Reserves for treasury shares	and holdings (deductible item)	Statutory reserves Other reserves		Revaluation reserves	through other Cash flow hedge - comprehensive effective portion	investment in a foreign operation -	Other fair value reserves	differences from translation of	loss brought forward	Profit/loss for the business year	owners of the parent	controlling) interest	reserves
										income (available for sale)	effective portion		foreign operations
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	153.872.886	0	307.093.382	0	307.093.382
2 Changes in accounting policies	02	0	0	0	0	0	0	0	0	0	0 0	0	0	0	0	0	0	0
3 Correction of errors 4 Balance on the first day of the previous business year (restated) (ADP 01 to	03	0	0	0	0	0	0	0	0	0	0 0	0	0	0	0	0	0	0
03)	04	133.165.000	0	6.658.250	13.903.446	506.200	0	0	0	0	0 0	0	0	153.872.886	0	307.093.382	0	307.093.382
5 Profit/loss of the period 6 Exchange rate differences from translation of foreign operations	05 06	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0 0 0			0 0	115.206.995 0	115.206.995 0	0 0	115.206.995 0
7 Changes in revaluation reserves of fixed tangible and intangible assets	07	0	0	0	0	0	0	0	0	0	0 0			0	0	0	0	0
8 Gains or losses from subsequent measurement of financial assets at fair value
through other comprehensive income (available for sale)	08	0	0	0	0	0	0	0	0	0	0 0			0	0	0	0	0
9 Profit or loss arising from effective cash flow hedge 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	12	0	0	0	0	0	0							0	0	0	0	0
13 Other changes in equity unrelated to owners 14 Tax on transactions recognised directly in equity	13 14	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0 0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0
15 Decrease in initial (subscribed) capital (other than arising from the pre	15	0	0	0	0	0	0	0	0	0	0 0	0	0	0	0	0	0	0
bankruptcy settlement procedure or from the reinvestment of profit)
16 Decrease in initial (subscribed) capital arising from the pre-bankruptcy settlement procedure	16	0	0	0	0	0	0	0	0	0	0 0	0	0	0	0	0	0	0
17 Decrease in initial (subscribed) capital arising from the reinvestment of profit	17	0	0	0	0	0	0	0	0	0	0 0	0	0	0	0	0	0	0
18 Redemption of treasury shares/holdings	18	0	0	0	25.000.000	14.307.340	0	0	0	0	0 0	0	0	-25.000.000	0	-14.307.340	0	-14.307.340
19 Payments from members/shareholders	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 4.405.138	0 0	-109.162.418 4.405.138	0 0	-109.162.418 4.405.138
22 Transfer to reserves according to the annual schedule	22	0	0	0	0	0	0	0	0	0	0 0	0	0	0	0	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 24	0 133.165.000	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
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)
I OTHER COMPREHENSIVE INCOME OF THE PREVIOUS PERIOD, NET OF		0	0	0	0	0	0	0	0	0	0 0	0	0	0	0	0	0	0
TAX (ADP 06 to 14)	25
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	-129.757.280	0	-119.064.620	0	-119.064.620
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	0	139.322.601	0	303.235.757	0	303.235.757
2 Changes in accounting policies	29	0	0	0	0	0	0	0	0	0	0 0	0	0	0	0	0	0	0
3 Correction of errors	30	0	0	0	0	0	0	0	0	0	0 0	0	0	0	0	0	0	0
4 Balance on the first day of the current business year (restated) (AOP 28 to 30)	31	133.165.000	0	6.658.250	36.511.836	12.421.930	0	0	0	0	0 0	0	0	139.322.601	0	303.235.757	0	303.235.757
5 Profit/loss of the period 6 Exchange rate differences from translation of foreign operations	32 33	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0 0 0			0 0	114.861.672 0	114.861.672 0	0 0	114.861.672 0
7 Changes in revaluation reserves of fixed tangible and intangible assets	34	0	0	0	0	0	0	0	0	0	0 0			0	0	0	0	0
8 Gains or losses from subsequent measurement of financial assets at fair value	35	0	0	0	0	0	0	0	0	0	0 0			0	0	0	0	0
through other comprehensive income (available for sale) 9 Profit or loss arising from effective cash flow hedge
10 Profit or loss arising from effective hedge of a net investment in a foreign	36	0	0	0	0	0	0	0	0	0	0 0			0	0	0	0	0
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 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	4.376.970	0	0	0	0	0 0	0	0	-10.000.000	0	-4.376.970	0	-4.376.970
19 Payments from members/shareholders	46	0	0	0	0	0	0	0	0	0	0 0	0	0	0	0	0	0	0
20 Payment of share in profit/dividend 21 Other distributions and payments to members/shareholders	47 48	0 0	0 0	0 0	0 -5.974.230	0 -5.974.230	0 0	0 0	0 0	0 0	0 0 0 0	0 0	0 0	-84.649.088 5.891.501	0 0	-84.649.088 5.891.501	0 0	-84.649.088 5.891.501
22 Carryforward per annual plane 23 Increase in reserves arising from the pre-bankruptcy settlement procedure	49	0	0	0	0	0	0	0	0	0	0 0	0	0	0	0	0	0	0
24 Balance on the last day of the current business year reporting period (ADP	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	40.537.606	10.824.670	0	0	0	0	0 0	0	0	50.565.014	114.861.672	334.962.872	0	334.962.872
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	114.861.672	114.861.672	0	114.861.672
III TRANSACTIONS WITH OWNERS IN THE CURRENT PERIOD RECOGNISED	54	0	0	0	4.025.770	-1.597.260	0	0	0	0	0 0	0	0	-88.757.587	0	-83.134.557	0	-83.134.557
DIRECTLY IN EQUITY (ADP 42 to 50)

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: Q3 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) Last issued annual financial statements are available at ZSE and as well at www.ericsson.hr.

a)

e)

www.ericsson.hr/en/reports 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.

consistently applied to all the periods presented.

Segment report
	Networks		Digital Services			Managed Services	Other		Unallocated		Total
										30.09.2022 30.09.2021 30.09.2022 30.09.2021 30.09.2022 30.09.2021 30.09.2022 30.09.2021 30.09.2022 30.09.2021 30.09.2022 30.09.2021
	'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	716.508	649.408	414.479	403.625	18.342	13.839	2.638	5.031	0		0 1.151.967 1.071.903
Operating profit	138.200	75.814	20.522	37.987	2.256	653	265	431	-28.749	-26.510	132.494	88.375
Transactions with related parties:		HRK 000	30.09.2022 30.09.2021 HRK 000
Sales		769.441	662.813
Purchases		177.195	204.145
Balances with related parties
		HRK 000	30.09.2022 31.12.2021 HRK 000
Receivable		111.912	80.178
Payable		48.643	5.797
1. Issuer's name, registered office (address), legal form, country of establishment, entity's registration number are disclosed in the sheet General data of this document. 2. Accounting policies have not been changed in relation to previous reporting period. 3. Financial commitments in term of guarantees that are not included in the balance sheet are not material and Management Board believes that possibility of any outflow is remote. The Company 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 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. 6. The average number of employees during the reporting period is 2676 (Q1-Q3 2021: 2601). The Company does not categorise employees. 7. No cost of salaries was capitalised in the reporting period. 8. Provision for deferred tax is calculated annualy, at balance sheet date 31 December. There were no movement in deferred tax balances during reporting period. 9. The Company has no participating interest. 10. There were no shares subscribed during the financial year within the limits of the authorised capital. 11. The Company has no participation certificates, convertible debentures, warrants, options or similar securities or rights. 12. The Company 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 larger Group of companies, in which Ericsson Nikola Tesla Group is included as an associate member of Ericsson. 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 material. 17.

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

Balance Sheet Within the category Non-current assets in Statement of financial position total amount of Loans and receivables is indicated in TFI-POD form under AOP 023 Loans, deposits, etc. to undertakings within the group, 028 Loans, deposits, etc. given,034 Customer receivables,035 Other receivables.

Within the category Current assets in Statement of financial position total amount of Other receivables is indicated in TFI-POD form under AOP 051 Receivables from government and other institutions, 052 Other receivables, 061 Loans, deposits, etc. given.

Within the category Equity in Statement of financial position total amount of Retained earnings is indicated in TFI-POD form under AOP

083 Retaind profit/loss brought forward and 086 Profit or Loss for the business year. Additionally, within the category Non-current liabilities in Statement of Financial position total amount of Borrowings and Lease liabilities are shown

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.

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.

P&L

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.