Ericsson Nikola Tesla d.d.

Annual Report • 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.

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

	2022 HRK '000	2021 HRK '000
Sales revenue	1.545.807	1.533.027
Cost of sales	-1.407.206	-1.356.232
Gross profit	_ _ 138.601 -28.657 -35.942 28.658 -56 _ _ 102.604 _ _ 8.558 -3.390 _ _ 5.168 _ _	176.795
Selling expenses		-28.216
Administrative expenses		-34.015
Other operating income		17.724
Impairment loss on financial assets		-132
Operating profit		132.156
Finance income		4.560
Finance expense		-1.361
Finance income/(expense), net		3.199
Profit before tax	107.771	135.355
Income tax	-28.502	-20.626
Profit for the year	__ 79.269	__ 114.729
Other comprehensive income	__ 421	__ -161
Total comprehensive income for the year	__ 79.690	__ 114.568
Earnings per share (HRK)	__ 60	__ 86

Ericsson Nikola Tesla d.d.

Consolidated statement of financial position as at 30 September 2022

	2022	2021
	HRK '000	HRK '000
ASSETS
Non-current assets Property, plant and equipment	126.382	134.198
Right of use assets	47.485	52.087
Intangible assets	4.956	5.257
Loans and receivables	21.150	21.928
Deferred tax assets	15.632	15.606
Total non-current assets	__ 215.605	__ 229.076
	__	__
Current assets
Inventories	152.239	142.852
Trade receivables	199.218	201.473
Receivables from related parties	107.745	76.808
Other receivables	8.083	35.994
Income tax receivable	2.175	181
Prepayments	7.540	6.787
Financial assets at fair value through profit or loss	30.814	32.997
Cash and cash equivalents	431.781	477.487
Total current assets	939.595	974.579
TOTAL ASSETS	1.155.200	1.203.655
EQUITY AND LIABILITIES
Equity
Share capital	133.165	133.165
Treasury shares	-10.825	-12.422
Legal reserves	6.658	6.658
Reserve for treasury shares	_ _ _ _ _ _ 40.538 36.512 24
Reserve of currency conversion		-397
Retained earnings	231.037	240.526 __
Total equity	__ 400.597	404.042
	__	__
Non-current liabilities
Borrowings	6.974	17.031
Lease liabilities	30.376	33.674
Other non-curent liabilities	281	446
Employee benefits	8.237 __	8.597 __
Total non-current liabilities	45.868 __	59.748 __
Current liabilities
Payables to related parties	60.804	12.628
Borrowings	14.099	14.134
Trade and other payables	210.575	253.501
Income tax payable	18.958	16.806
Provisions	10.567	13.601
Accrued charges and deferred revenue	161.274	120.483
Contract liabilities	215.367	289.976
Lease liabilities	17.091	18.736
Total current liabilities	__ 708.735	_ 739.865 _
Total liabilities	__ 754.603	799.613
TOTAL EQUITY AND LIABILITIES	__ 1.155.200	_ 1.203.655 _
	__

Ericsson Nikola Tesla d.d. Consolidated statement of cash flows for the period ended 30 September 2022

	2022	2021
	HRK '000	HRK '000
Cash flows from operating activities
Profit before tax	107.771	135.355
	_	_
Adjustments for:
Depreciation and amortisation	37.334	43.153
Impairment losses and reversals	-148	-126
Gain on sale of property, plant and equipment Net loss/(gain) on remeasurement of financial assets	-205 1.920	-33 -229
Interest income	-3.675	-2.487
Interest expense	1.503	1.306
Foreign exchange (gains)/losses, net	-3.537	-2.963
Share-based payments	5.892	2.285
	_	_
Changes in working capital
In receivables	-5.749	-54.446
In inventories	-9.387	-61.234
In provisions	-3.394	768
In payables	-35.468 _	179.240 _
Cash generated from operations	92.857	240.589
	_	_
Interest paid	-1.368	-1.555
Income taxes paid	-26.655	-3.722 _
Net cash from operating activities	_ 64.834	235.312
Cash flows from investing activities	_	_
Interest received	3.155	2.581
Dividends received	-	60
Proceeds from sale of property, plant and equipment	196	100
Purchases of property, plant and equipment, and intangible assets	-5.859	-10.822
Deposits given to financial institutions - net	12.901	-1.236
Receipt of government grant	-	1.325
Net cash used in investing activities	_ 10.392	_ -7.993
	_	_
Cash flows from financing activities
Repayment of borrowings	-17.596	-11.308
Purchase of treasury shares	-4.377	-3.240
Dividends paid	-84.701	-109.166
Payment of lease liabilities	-16.168	-17.086
	_	_
Net cash used in financing activities	-122.841 _	-140.800 _
Effects of exchange rate changes on cash and cash equivalents	1.908	277 _
Net increase/(decrease) in cash and cash equivalents	_ -45.706	86.796
Cash and cash equivalents at the beginning of the year	477.487	281.056
Cash and cash equivalents at the end of the year	_ 431.781	_ 367.851
	_	_

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
treet and house number: Krapinska 45
	E-mail address: etk.company@ericsson.com
	Web address: www.ericsson.hr
Number of employees (end of the reporting	3501
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	65-01-0996-1
	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
					Yes No
Bookkeeping firm:	No	(Yes/No)		(name of the bookkeeping firm)
	Contact person: Tatjana Ricijaš
	(only name and surname of the contact person) Telephone: +385(0)13653343
	E-mail address: tatjana.ricijas@ericsson.com
	Audit firm: KPMG Croatia d.o.o.
	(name of the audit firm)
	Certified auditor: Domagoj Hrkać
	(name and surname)

BALANCE SHEET balance as at 30.09.2022

in HRK

Submitter: ERICSSON NIKOLA TESLA D.D. Item	ADP	Last day of the preceding business	At the reporting date of the current period
1	code 2	year 3	4
A) RECEIVABLES FOR SUBSCRIBED CAPITAL UNPAID	001	0	0
B) FIXED ASSETS (ADP 003+010+020+031+036) I INTANGIBLE ASSETS (ADP 004 to 009)	002 003	229.075.936 5.257.409	215.604.429 4.956.040
1 Research and development 2 Concessions, patents, licences, trademarks, software and other rights	004 005	0 1.084.163	0 782.794
3 Goodwill 4 Advances for the purchase of intangible assets	006 007	4.173.246 0	4.173.246 0
5 Intangible assets in preparation 6 Other intangible assets	008 009	0 0	0 0
II TANGIBLE ASSETS (ADP 011 to 019) 1 Land	010 011	186.284.651 15.605.344	173.867.110 15.605.344
2 Buildings 3 Plant and equipment	012 013	91.238.625 46.800.326	86.035.013 40.643.737
4 Tools, working inventory and transportation assets 5 Biological assets	014 015	32.007.853 0	27.424.492 0
6 Advances for the purchase of tangible assets 7 Tangible assets in preparation	016 017	0 587.641	0 4.119.498
8 Other tangible assets 9 Investment property	018 019	44.862 0	39.026 0
III FIXED FINANCIAL ASSETS (ADP 021 to 030) 1 Investments in holdings (shares) of undertakings within the group	020 021	16.432.018 0	15.776.683 0
2 Investments in other securities of undertakings within the group 3 Loans, deposits, etc. to undertakings within the group	022 023	0	0
4. Investments in holdings (shares) of companies linked by virtue of participating interests 5 Investment in other securities of companies linked by virtue of	024	0	0
participating interests 6 Loans, deposits etc. to companies linked by virtue of participating	025	0	0
interests 7 Investments in securities	027	0	0
8 Loans, deposits, etc. given 9 Other investments accounted for using the equity method	029	0	0
10 Other fixed financial assets IV RECEIVABLES (ADP 032 to 035)	031	5.495.745	5.372.992
1 Receivables from undertakings within the group 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	036	15.606.113	15.631.604
C) CURRENT ASSETS (ADP 038+046+053+063) I INVENTORIES (ADP 039 to 045) 1 Raw materials and consumables	038	142.851.933	152.238.783
2 Work in progress 3 Finished goods	040	103.699.551	99.099.274
4 Merchandise 5 Advances for inventories	042 043	0 1.800	0 1.800
6 Fixed assets held for sale 7 Biological assets	044 045	0 0	0 0
II RECEIVABLES (ADP 047 to 052) 1 Receivables from undertakings within the group	046	301.127.701	315.409.871
2 Receivables from companies linked by virtue of participating interests	048	76.808.031	107.745.396
3 Customer receivables 4 Receivables from employees and members of the undertaking	049 050	201.472.625 0	199.218.057 0
5 Receivables from government and other institutions 6 Other receivables	052	19.379.120	5.858.893
III CURRENT FINANCIAL ASSETS (ADP 054 to 062) 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 4 Investments in holdings (shares) of companies linked by virtue of
participating interests 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 8 Loans, deposits, etc. given	060 061	32.997.449 13.328.313	30.814.293 1.811.343
9 Other financial assets IV CASH AT BANK AND IN HAND	062 063	0 477.487.038	0 431.780.964
D ) PREPAID EXPENSES AND ACCRUED INCOME E) TOTAL ASSETS (ADP 001+002+037+064)	065	1.203.655.481	1.155.199.658
OFF-BALANCE SHEET ITEMS LIABILITIES A) CAPITAL AND RESERVES (ADP 068 to			0 0 0 0 15.776.683 0 0 0 0 361.631 932.055.254 53.137.709 0 0 0 0 2.587.525 32.625.636 0 0 0 0 7.539.975 0 0 400.597.557 133.165.000 0 0 36.371.186 6.658.250 40.537.606 -10.824.670 0 0 0 0 0 0 24.348 0 0 0 0 0 0 0 0 24.348 151.767.919 151.767.919 0 0 79.269.104 79.269.104 0 0 0 0 8.237.192 8.237.192 0 0
I INITIAL (SUBSCRIBED) CAPITAL II CAPITAL RESERVES	068	133.165.000
III RESERVES FROM PROFIT (ADP 071+072-073+074+075) 1 Legal reserves	070	026 028 16.432.018 030 032 035 368.606 037 967.792.434 039 39.150.582 041 047 051 3.467.925 053 46.325.762 056 057 064 6.787.111 066 067 404.042.075 069 30.748.156 071 6.658.250 072 36.511.836 073 -12.421.930 074 075 076 077 -396.587 078 079 080 081 082 -396.587
2 Reserves for treasury shares 3 Treasury shares and holdings (deductible item)
4 Statutory reserves 5 Other reserves
IV REVALUATION RESERVES V FAIR VALUE RESERVES AND OTHER (ADP 078 to 082)
1 Financial assets at fair value through other comprehensive income (i.e. available for sale)
2 Cash flow hedge - effective portion 3 Hedge of a net investment in a foreign operation - effective portion
4 Other fair value reserves 5 Exchange differences arising from the translation of foreign
operations (consolidation) VI RETAINED PROFIT OR LOSS BROUGHT FORWARD (ADP 084- 085)	083	63.177.357
1 Retained profit 2 Loss brought forward	084 085	63.177.357
VII PROFIT OR LOSS FOR THE BUSINESS YEAR (ADP 087-088) 1 Profit for the business year	086 087	177.348.149 177.348.149
2 Loss for the business year VIII MINORITY (NON-CONTROLLING) INTEREST	088 089
B) PROVISIONS (ADP 091 to 096) 1 Provisions for pensions, termination benefits and similar	090	8.597.453
obligations 2 Provisions for tax liabilities	091 092	8.597.453
3 Provisions for ongoing legal cases 4 Provisions for renewal of natural resources	093 094	0 0	0 0
5 Provisions for warranty obligations 6 Other provisions	095 096	0 0	0 0
C) LONG-TERM LIABILITIES (ADP 098 to 108) 1 Liabilities to undertakings within the group	097 098	51.150.940 0	37.630.822 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 4 Liabilities for loans, deposits etc. of companies linked by virtue of participating interests	100 101	0 0	0 0
5 Liabilities for loans, deposits etc. 6 Liabilities to banks and other financial institutions	102 103	0 50.705.458	0 37.349.480
7 Liabilities for advance payments 8 Liabilities to suppliers	104 105	0 0	0 0
9 Liabilities for securities 10 Other long-term liabilities	106 107	0 445.482	0 281.342
11 Deferred tax liability D) SHORT-TERM LIABILITIES (ADP 110 to 123)	108 109	0 381.934.073	0 362.714.632
1 Liabilities to undertakings within the group 2 Liabilities for loans, deposits, etc. of undertakings within the group	110 111	0 0	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	60.803.505
participating interests 5 Liabilities for loans, deposits etc.	113 114	0 0	0 0
6 Liabilities to banks and other financial institutions 7 Liabilities for advance payments	115 116	32.870.157 52.527.993	31.190.211 30.621.489
8 Liabilities to suppliers 9 Liabilities for securities	117 118	94.629.186 0	75.335.442 0
10 Liabilities to employees 11 Taxes, contributions and similar liabilities	119 120	132.549.730 43.127.961	104.364.330 49.832.934
12 Liabilities arising from the share in the result 13 Liabilities arising from fixed assets held for sale	121 122	0 0	0 0
14 Other short-term liabilities E) ACCRUALS AND DEFERRED INCOME	123 124	13.600.813 357.930.940	10.566.721 346.019.455
F) TOTAL – LIABILITIES (ADP 067+090+097+109+124) G) OFF-BALANCE SHEET ITEMS	125 126	1.203.655.481 0	1.155.199.658 0

for the period 01.01.2022 to 30.09.2022 STATEMENT OF PROFIT OR LOSS

in HRK

Submitter: ERICSSON NIKOLA TESLA D.D.			Same period of the previous year	Current period
Item	ADP code	Cumulative	Quarter	Cumulative	Quarter
1 I OPERATING INCOME (ADP 002 to 006)	2 001	3 1.550.751.392	4 527.936.428	5 1.574.464.478	6 493.159.550
1 Income from sales with undertakings within the group	002	0	0	0	0
2 Income from sales (outside group) 3 Income from the use of own products, goods and services	003 004	1.533.027.119 0	518.810.301 0	1.545.806.679 0	483.505.740 0
4 Other operating income with undertakings within the group 5 Other operating income (outside the group)	005 006	0 17.724.273	0 9.126.127	0 28.657.799	0 9.653.810
II OPERATING EXPENSES (ADP 08+009+013+017+018+019+022+029)	007	1.418.595.742	515.074.493	1.471.860.794	467.428.645
1 Changes in inventories of work in progress and finished goods	008	-44.868.053	-5.995.063	4.523.835	-2.228.586
2 Material costs (ADP 010 to 012) a) Costs of raw materials and consumables	010	242.493.943	93.028.860	247.260.702	196.693.923 70.590.802
b) Costs of goods sold	011	0	0	0	0
3 Staff costs (ADP 014 to 016)	013	668.197.138	235.020.386	719.207.670	244.709.472
b) Tax and contributions from salary costs	015	177.689.078	63.856.737	197.245.122	68.546.153
4 Depreciation	012 461.606.882 162.387.622 404.541.833 014 413.856.761 143.538.285 440.859.993 016 76.651.299 27.625.364 81.102.555 017 43.153.434 14.545.970 37.333.832 018 36.427.825 12.876.506 54.923.755 019 1.360.492 354.958 0 020 0 0 0 021 1.360.492 354.958 0 022 10.092.300 3.272.482 4.012.976 023 6.109.287 3.221.899 3.852.571 024 0 0 0 025 0 0 0 026 0 0 0 027 628.698 50.583 160.405 028 3.354.315 0 0 029 131.781 -417.228 56.191 030 4.559.670 2.143.233 8.557.643 031 0 0 0 032 0 0 0 033 0 0 0 034 0 0 0 035 0 0 0 036 0 0 0 2.487.385 1.130.537 3.674.895 037 038 1.902.684 1.089.086 4.882.742 0 0 0 039 040 169.601 -76.390 6 1.360.636 477.180 3.389.839 041 042 0 0 0 043 22.095 3.629 0 1.338.541 473.551 1.206.685 044 045 0 0 0 0 0 0 046 047 0 0 0 0 0 2.183.154 048 049 0 0 0 050 0 0 0 051 0 0 0 052 0 0 0 053 1.555.311.062 530.079.661 1.583.022.121	27.486.297
5 Other costs	704.100.825 255.416.482 651.802.535 009 054 1.419.956.378 515.551.673 1.475.250.633 055 135.354.684 14.527.988 107.771.488 056 135.354.684 14.527.988 107.771.488 057 0 0 0 058 20.625.629 1.242.225 28.502.384	17.047.793
a) fixed assets other than financial assets		0
7 Provisions (ADP 023 to 028)					680.147
a) Provisions for pensions, termination benefits and similar obligations					594.946
c) Provisions for ongoing legal cases					0
e) Provisions for warranty obligations					85.201
f) Other provisions					0
III FINANCIAL INCOME (ADP 031 to 040)					2.688.152
the group					0
virtue of participating interests					0
3 Income from other long-term financial investment and loans granted to					0
2 Exchange rate differences and other expenses from operations with undertakings within the group 3 Interest expenses and similar expenses 4 Exchange rate differences and other expenses 5 Unrealised losses (expenses) from financial assets 6 Value adjustments of financial assets (net) 7 Other financial expenses
	634.032
9 Unrealised gains (income) from financial assets					0
10 Other financial income					6
1 Interest expenses and similar expenses with undertakings within the					0
					405.885
					0
					0
V SHARE IN PROFIT FROM UNDERTAKINGS LINKED BY VRITUE OF	2.054.114 691.494 0 0 285.609 0 0 0 0 495.847.702 468.120.139 27.727.563 27.727.563 0
VI SHARE IN PROFIT FROM JOINT VENTURES
VII SHARE IN LOSS OF COMPANIES LINKED BY VIRTUE OF
VIII SHARE IN LOSS OF JOINT VENTURES
X TOTAL EXPENDITURE (ADP 007+041+051 + 052)
1 Pre-tax profit (ADP 053-054)
XII INCOME TAX					16.835.064
XIII PROFIT OR LOSS FOR THE PERIOD (ADP 055-059)	059	114.729.055	13.285.763	79.269.104	79.269.104 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 79.269.104 420.935 0 0 0
2 Loss for the period (ADP 059-055)	061	0	0		0
XIV PRE-TAX PROFIT OR LOSS OF DISCONTINUED OPERATIONS
1 Pre-tax profit from discontinued operations	063	0	0	126.103.121 148.677.022 11.855.586 0 0 0 0 -1.329.690 0 0 0 10.892.499 10.892.499 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 10.892.499 478.512 0 0 0
XV INCOME TAX OF DISCONTINUED OPERATIONS	060 114.729.055 13.285.763 062 0 0 0 0 064 065 0 0 0 0 066 067 0 0 068 0 0 069 0 0 070 0 0 071 0 0 072 0 0
2 Pre-tax loss (ADP 054-053) 1 Profit for the period (ADP 055-059) 2 Pre-tax loss on discontinued operations 1 Discontinued operations profit for the period (ADP 062-065) 2 Discontinued operations loss for the period (ADP 065-062) 1 Pre-tax profit (ADP 068) 2 Pre-tax loss (ADP 068) 1 Profit for the period (ADP 068-071) 073 0 0 2 Loss for the period (ADP 071-068)
6 Value adjustments (ADP 020+021) b) current assets other than financial assets b) Provisions for tax liabilities d) Provisions for renewal of natural resources 8 Other operating expenses 1 Income from investments in holdings (shares) of undertakings within 2 Income from investments in holdings (shares) of companies linked by undertakings within the group 4 Other interest income from operations with undertakings within the group 5 Exchange rate differences and other financial income from operations with undertakings within the group 6 Income from other long-term financial investments and loans 7 Other interest income 8 Exchange rate differences and other financial income IV FINANCIAL EXPENSES (ADP 042 to 048) group PARTICIPATING INTERESTS PARTICIPATING INTEREST IX TOTAL INCOME (ADP 001+030+049 +050) XI PRE-TAX PROFIT OR LOSS (ADP 053-054) DISCONTINUED OPERATIONS (to be filled in by undertakings subject to IFRS only with discontinued operations) (ADP 063-064) TOTAL OPERATIONS (to be filled in only by undertakings subject to IFRS with discontinued operations) XVI PRE-TAX PROFIT OR LOSS (ADP 055-+062)
c) Contributions on salaries
c) Other external costs a) Net salaries and wages XVII INCOME TAX (ADP 058+065) XVIII PROFIT OR LOSS FOR THE PERIOD (ADP 068-071)
	074	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
1 Attributable to owners of the parent 2 Attributable to minority (non-controlling) interest	076 077	0 0	0 0
STATEMENT OF OTHER COMPRHENSIVE INCOME (to be filled in by undertakings subject to IFRS) I PROFIT OR LOSS FOR THE PERIOD	078	114.729.055	13.285.763
II OTHER COMPREHENSIVE INCOME/LOSS BEFORE TAX	079	-160.686	39.359
(ADP 80+ 87) III Items that will not be reclassified to profit or loss (ADP 081 to 085)	080	0	0
1 Changes in revaluation reserves of fixed tangible and intangible
assets 2 Gains or losses from subsequent measurement of equity instruments	081	0	0
at fair value through other comprehensive income 3 Fair value changes of financial liabilities at fair value through	082	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	-160.686	39.359	420.935	478.512
1 Exchange rate differences from translation of foreign operations 2 Gains or losses from subsequent measurement of debt securities at	088 089	-160.686 0	39.359 0	420.935 0	478.512 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)	097	-160.686	39.359	420.935	478.512
VI COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (ADP	098	114.568.369	13.325.122	79.690.039	11.371.011
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	114.568.369	13.325.122	79.690.039	11.371.011
1 Attributable to owners of the parent 2 Attributable to minority (non-controlling) interest	100 101	114.568.369 0	13.325.122 0	79.690.039 0	11.371.011 0

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

Submitter: ERICSSON NIKOLA TESLA D.D.			in HRK
Item	ADP code	Same period of the previous year	Current period
1	2	3	4
Cash flow from operating activities 1 Pre-tax profit
2 Adjustments (ADP 003 to 010):	001 002	135.354.684 40.906.442	107.771.488 39.083.608
a) Depreciation	003	43.153.434	37.333.832
b) Gains and losses from sale and value adjustment of fixed tangible and intangible assets	004	-32.906	-204.552
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	-2.487.385	-3.674.895
e) Interest expenses	007	1.306.372	1.502.902
f) Provisions	008	0	0
g) Exchange rate differences (unrealised)	009	-2.962.923	-3.536.988
h) Other adjustments for non-cash transactions and unrealised gains and losses	010	2.159.175	5.743.539
I Cash flow increase or decrease before changes in working capital (ADP 001+002)	011	176.261.126	146.855.096
3 Changes in the working capital (ADP 013 to 016)	012	64.327.771	-53.998.419
a) Increase or decrease in short-term liabilities	013	179.239.668	-35.467.998
b) Increase or decrease in short-term receivables	014	-54.446.219	-5.749.218
c) Increase or decrease in inventories
d) Other increase or decrease in working capital
II Cash from operations (ADP 011+012)
4 Interest paid 5 Income tax paid
A) NET CASH FLOW FROM OPERATING ACTIVITIES (ADP 017 to 019)	020	235.311.681	64.834.345
Cash flow from investment activities 1 Cash receipts from sales of fixed tangible and intangible assets
2 Cash receipts from sales of financial instruments
3 Interest received
4 Dividends received
5 Cash receipts from repayment of loans and deposits
6 Other cash receipts from investment activities
III Total cash receipts from investment activities (ADP 021 to 026)	027	4.065.306	16.251.537
1 Cash payments for the purchase of fixed tangible and intangible assets	028	-10.821.783	-5.859.158
2 Cash payments for the acquisition of financial instruments	029	0	0
3 Cash payments for loans and deposits for the period
4 Acquisition of a subsidiary, net of cash acquired	-61.233.811 -9.386.849 015 016 768.133 -3.394.354 017 240.588.897 92.856.677 018 -1.555.451 -1.367.569 019 -3.721.765 -26.654.763 100.493 196.392 021 0 0 022 2.580.568 3.154.622 023 024 59.724 0 025 0 12.900.523 026 1.324.521 0 -1.236.427 0 030 0 0 031 0 0 032 033 -12.058.210 -5.859.158 034 -7.992.904 10.392.379
5 Other cash payments from investment activities IV Total cash payments from investment activities (ADP 028 to 032)
B) NET CASH FLOW FROM INVESTMENT ACTIVITIES (ADP 027 +033)
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	-11.308.105	-17.595.971
2 Cash payments for dividends	041	-109.165.903	-84.700.530
3 Cash payments for finance lease 4 Cash payments for the redemption of treasury shares and decrease in	042 043	-17.086.067 -3.239.730	-16.167.642 -4.376.970
initial (subscribed) capital 5 Other cash payments from financing activities	044	0	0
VI Total cash payments from financing activities (ADP 040 to 044)	045	-140.799.805	-122.841.113
C) NET CASH FLOW FROM FINANCING ACTIVITIES (ADP 039 +045)	046	-140.799.805	-122.841.113
1 Unrealised exchange rate differences in respect of cash and cash	047	276.570	1.908.315
equivalents D) NET INCREASE OR DECREASE IN CASH FLOWS (ADP	048	86.795.542	-45.706.074
020+034+046+047) E) CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE
PERIOD F) CASH AND CASH EQUIVALENTS AT THE END OF THE	049	281.055.836	477.487.038
PERIOD(ADP 048+049)	050	367.851.378	431.780.964

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		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	Profit/loss for the business year	owners of the	controlling) interest	reserves
						(deductible item)				income (available	effective portion		foreign operations	forward		parent
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 2 Changes in accounting policies	01 02	133.165.000 0	0 0	6.658.250 0	13.903.446 0	506.200 0	0 0	0 0	0 0	0 0	0 0 0 0	0 0	-281.331 0	192.934.636 0	0 0	345.873.801 0	0 0	345.873.801 0
3 Correction of errors	03	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	192.934.636	0	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	20	0	0	0	0	0	0	0	0	0	0 0	0	0	-109.162.418	0	-109.162.418	0	-109.162.418
21 Other distributions and payments to members/shareholders 22 Transfer to reserves according to the annual schedule	21 22	0 0	0 0	0 0	-2.391.610 0	-2.391.610 0	0 0	0 0	0 0	0 0	0 0 0 0	0 0	0 0	4.405.139 0	0 0	4.405.139 0	0 0	4.405.139 0
23 Increase in reserves arising from the pre-bankruptcy settlement procedure	23	0	0	0	0	0	0	0	0	0	0 0	0	0	0	0	0	0	0
24 Balance on the last day of the previous business year reporting period (ADP 04 to 23)	24	133.165.000	0	6.658.250	36.511.836	12.421.930	0	0	0	0	0 0	0	-396.587	63.177.357	177.348.149	404.042.075	0	404.042.075
APPENDIX TO THE STATEMENT OF CHANGES IN EQUITY (to be filled in by undertakings that draw up financial statements in accordance with the IFRS)
I OTHER COMPREHENSIVE INCOME OF THE PREVIOUS PERIOD, NET OF TAX (ADP 06 to 14)	25	0	0	0	0	0	0	0	0	0	0 0	0	-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	27	0	0	0	22.608.390	11.915.730	0	0	0	0	0 0	0	0	-129.757.279	0	-119.064.619	0	-119.064.619
DIRECTLY IN EQUITY (ADP 15 to 23) 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	240.525.506	0	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	240.525.506	0	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	79.269.104	79.269.104	0	79.269.104
6 Exchange rate differences from translation of foreign operations	33	0	0	0	0	0	0	0	0	0	0 0	0	420.935	0	0	420.935	0	420.935
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	35	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
	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	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	39	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	40 41	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0 0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0
15 Decrease in initial (subscribed) capital (other than arising from the pre bankruptcy settlement procedure or from the reinvestment of profit)	42	0	0	0	0	0	0	0	0	0	0 0	0	0	0	0	0	0	0
16 Decrease in initial (subscribed) capital arising from the pre-bankruptcy
settlement procedure	43	0	0	0	0	0	0	0	0	0	0 0	0	0	0	0	0	0	0
17 Decrease in initial (subscribed) capital arising from the reinvestment of profit	44	0	0	0	0	0	0	0	0	0	0 0	0	0	0	0	0	0	0
18 Redemption of treasury shares/holdings 19 Payments from members/shareholders	45 46	0 0	0 0	0 0	10.000.000 0	4.376.970 0	0 0	0 0	0 0	0 0	0 0 0 0	0 0	0 0	-10.000.000 0	0 0	-4.376.970 0	0 0	-4.376.970 0
20 Payment of share in profit/dividend	47	0	0	0	0	0	0	0	0	0	0 0	0	0	-84.649.088	0	-84.649.088	0	-84.649.088
21 Other distributions and payments to members/shareholders 22 Carryforward per annual plane	48 49	0 0	0 0	0 0	-5.974.230 0	-5.974.230 0	0 0	0 0	0 0	0 0	0 0 0 0	0 0	0 0	5.891.501 0	0 0	5.891.501 0	0 0	5.891.501 0
23 Increase in reserves arising from the pre-bankruptcy settlement procedure	50	0	0	0	0	0	0	0	0	0	0 0	0	0	0	0	0	0	0
24 Balance on the last day of the current business year reporting period (ADP 31 to 50)	51	133.165.000	0	6.658.250	40.537.606	10.824.670	0	0	0	0	0 0	0	24.348	151.767.919	79.269.104	400.597.557	0	400.597.557
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	52	0	0	0	0	0	0	0	0	0	0 0	0	420.935	0	0	420.935	0	420.935
TAX (ADP 33 to 41)
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	420.935	0	79.269.104	79.690.039	0	79.690.039
III TRANSACTIONS WITH OWNERS IN THE CURRENT PERIOD RECOGNISED DIRECTLY IN EQUITY (ADP 42 to 50)	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

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

administration

Notes to financial statements for quarterly periods include:

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

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

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

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

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

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

2. 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

3. 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

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 the

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

e)

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 671.497 407.138 376.884 449.360 2.637 5.032 0 0 1.545.807 1.533.027 745.212 421.074 Segment sales revenue 81.888 40.671 30.618 43.169 133 444 -35.942 -34.016 107.023 772 Operating profit 102.604 Transactions with related parties: 30.09.2022 30.09.2021 HRK 000 HRK 000 Sales 740.912 645.929 Purchases 173.946 203.311 Balances with related parties 30.09.2022 31.12.2021 HRK 000 HRK 000 Receivable 107.745 76.808 Payable 60.804 12.628 f) 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 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 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 (Q1-Q3 2021: 3332). 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.	'000 kn 132.156
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 and Income tax receivables is indicated in TFI-POD form under AOP 051 Receivables from government and other institutions, 052 Other receivables, 061 Loans, deposits, etc. given.
Within the category Equity in Statement of financial position total amount of Retained earnings is indicated in TFI-POD form under AOP 083
Retaind profit/loss brought forward and 086 Profit or Loss for the business year.
Additionally, within the category Non-current liabilities in Statement of Financial position total amount of Borrowings and Lease liabilities are shown 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.

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.