Ericsson Nikola Tesla d.d.

Interim / Quarterly Report • Oct 24, 2024

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

Zagreb, October 24, 2024

Management Report on the Company and Ericsson Nikola Tesla Group business performance with comments on the financial results for the first nine months of 2024

Highlights:

• Sales revenue: EUR 168.1 million
• Gross margin: 13.3 %
• Operating profit: EUR 17.9 million
• Profit before tax: EUR 18.8 million
• Net profit: EUR 11.9 million
• Cash flow from operating activities: EUR 1.2 million

Gordana Kovačević, President of Ericsson Nikola Tesla, commented:

"In the first nine months of 2024, in line with our strategy, we continued with the implementation of many projects in the domestic and export markets and achieved sales revenue amounting to EUR 168.1 million. Total sales revenue decreased by 18.4% YoY, primarily due to lower sales revenue in the domestic market in Managed Services segment, caused by the contract expiration with Hrvatski Telekom which was completed at the end of last year. For comparable units, if we exclude revenue from Managed Services with Hrvatski Telekom, the total sales revenue increased by 6% YoY, which indicates the continuation of stable business performance. Our strategy to strengthen business operations in export markets and in new business segments has been showing results. Sales revenue in the operator segment in the export markets and the Digital Society segment recorded growth and, together with the continuously stable business performance in Ericsson market, partially offset the decline in sales revenue in the domestic market in the operator segment.

Talking about financial indicators, gross profit amounted to EUR 22.3 million, down by 22.5% YoY, mainly due to lower sales revenue in the domestic market in the operator segment, and business mix. Gross margin was 13.3% (first nine months of 2023: 14.0%). Operating profit amounted to EUR 17.9 million, down by 27.5% YoY, primarily as a result of lower sales revenue and gross profit. We concluded the end of Q3 with a solid balance sheet and an equity ratio of 39.7%. Cash and cash equivalents, including the short-term financial assets, amounted to EUR 54.8 million, which accounts for 33.8% of the total assets. In line with our expectations, a positive cash flow from operating activities was realized in the amount of EUR 1.2 million (first nine months of 2023: EUR -2.4 million).

During the third quarter, we continued quality cooperation with our partners, the leading operators on the domestic market, on the extension and modernization of telecom networks. For us, the success of our customers is confirmation of our expertise and dedication in creating and implementing the latest technological solutions. Our strategic partnership with Hrvatski Telekom (HT) in the radio part of mobile network, has certainly contributed that Hrvatski Telekom once again, for the sixth year in a row, wins the Ookla® Speedtest Awards™ for the fastest mobile network and the best mobile coverage in Croatia. With our strategic partner A1 Hrvatska, that celebrates 25 years of successful business performance this year, we have achieved many significant joint steps forward in the application of state-of-the-art technological solutions. Currently, our activities continue on the extension of coverage and capacity of the 5G radio network, as well as on the modernization and construction of the convergent core network. In the Digital Society segment in the domestic market, we would like to highlight new contracts related to the green borders monitoring system, and the maintenance of the Joint Information System of Land Registry and Cadaster. With the City of Osijek the contract was signed on the development and implementation of the single and comprehensive City web and mobile app in which our consortium partner is A1 Hrvatska.

As we have previously commented, our strong focus is on strengthening business operations in export markets. During Q3, we continued intense activities on the modernization and expansion of network capacity with the Kosovo operators IPKO and Telekom Kosova, as well as HT Mostar (Bosnia and Herzegovina) and Crnogorski Telekom (Montenegro). We are pleased that the pre-sales activities in the Digital Society segment resulted in the signing of a contract with the company Logicom Solutions from Cyprus on the replacement of the land administration information system of the Department of Lands and Surveys of the Republic of Cyprus.

We have further strengthened our strategic partnership cooperation with Ericsson by gaining new assignments in R&D and Services. As already announced, our R&D Center gained new responsibilities for the development of 5G Radio Access Network (RAN). Gaining these responsibilities is important because it will enable us to build additional E2E capability within networks software/modules. In order to achieve this goal, the focus remains on efficient deliveries of high-quality software, agile organization and continuous improvement and optimization in the way of working. Our teams in the Services segment have also gained additional responsibilities for the development of software tools for mobile networks management and optimization.

We are proud of our long-term cooperation with the academic community, through which we actively strengthen the innovation potential, knowledge and technology transfer, and the development of quality experts. In September we marked the closing of the 23rd Ericsson Nikola Tesla Summer Camp, which provides students with an opportunity to apply academic knowledge in specific business projects. This year's Summer Camp, held in Zagreb, Split and Osijek, has gathered 69 students from faculties from Croatia and abroad who, with the support of their mentors, worked on 27 projects. These are concrete projects through which students were solving challenges by using the latest technologies, such as AI, XR, Big Data, Blockchain, etc.

In the past weeks, there was a lot of talk about the CEZIH system considering that, among other things, due to activities on system modernization, there were difficulties in using certain features. Due to obsolete infrastructure, it was necessary to migrate the CEZIH system with the accompanying data to new technological infrastructure, which is an extremely demanding technical process because of different hardware and software components, numerous functionalities and a large number of stakeholders. As well as on other tasks where our experts are engaged, both on activities related to maintenance and CEZIH modernization, we are doing everything we can to fulfill the responsibilities we have taken over, timely and with quality, in line with the contractual obligations.

Our focus remains on profitability, cost and operational efficiency, cash flow from operating activities and responsible risk management. We are working intensely to secure stable business performance by implementing a strategy focused on strengthening the leading position in mobile networks, growth in the Digital Society segment through intensified pre-sales activities and activities related to the expansion of our portfolio, business diversification in services and R&D segment, as well as continuous improvement of our position in the segments of services and R&D for Ericsson. Our investments continue in new business segments and customers, the development of ICT solutions based on the latest technologies, our employees' competencies and digital transformation of Ericsson Nikola Tesla Group. Furthermore, we have been working on a stronger application of Artificial Intelligence (AI) in creating new business opportunities and increasing internal efficiency.

In November we will celebrate 75 years of Ericsson Nikola Tesla doing business, and we will present our new visual identity. We are proud of our company that, thanks to technology leadership, strong innovative capacity and competent employees, has successfully adapted to numerous market and technological changes over the years."

Financial highlights for the Group:

• Sales revenue amounted to EUR 168.1 million (first nine months of 2023: EUR 205.9 million), down by 18.4% year-over-year, as a result of non-renewal of the contract with Hrvatski Telekom regarding managed services, and slow-down of operators' investments in mobile telecom infrastructure in the domestic market. The decline in sales revenue in the operator segment in the domestic market was partially offset by the growth in the Digital Society and in the operator segment in export markets, as well as continuously stable business performance in Ericsson market.
• Sales in the Networks segment amounted to EUR 106.1 million (first nine months of 2023: EUR 104.0 million), Digital Services segment amounted to EUR 59.6 million (first nine months of 2023: EUR 53.9 million), Managed Services segment amounted to EUR 2.0 million (first nine months of 2023: EUR 47.6 million), and the segment Other amounted to EUR 396 thousand (first nine months of 2023: EUR 377 thousand). As expected, there was a decline in the Managed Services segment, however, the results of other segments are somewhat better compared to the same period last year.
• Gross profit amounted to EUR 22.3 million (first nine months of 2023: EUR 28.8 million), down by 22.5% year-over-year, mainly due to lower sales revenue in the domestic market in the operator segment and business mix. Gross margin was 13.3% (first nine months of 2023: 14.0%).
• Selling and administrative expenses increased by 2.4% year-over-year and amounted to EUR 8.8 million (first nine months of 2023: EUR 8.6 million). This increase is the result of investments in the development of new business opportunities, and expenses related to the celebration of the company's 75th anniversary and new visual identity. The share of selling and administrative expenses in the total sales revenue was 5.2% (first nine months of 2023: 4.2%).
• Operating profit amounted to EUR 17.9 million (first nine months of 2023: EUR 24.7 million), down by 27.5% year-over-year, primarily as a result of lower sales revenue and gross profit. Operating margin was 10.7% (first nine months of 2023: 12.0%).
• Profit from financial activities amounted to EUR 0.8 million (first nine months of 2023: EUR 0.3 million), as a result of higher interest income due to an increase in interest rates.

• Profit before tax decreased by 24.9% year-over-year and amounted to EUR 18.8 million (first nine months of 2023: EUR 25.0 million).
• Net profit amounted to EUR 11.9 million (first nine months of 2023: EUR 20.5 million), down by 41.9% year-over-year, partially also due to additionally calculated one-time tax expense from the previous years due to subsequent change in interpretation of cost eligibility for tax deduction. Return on sales (ROS) was 7.1% (first nine months of 2023: 9.9%).
• Cash flow from operating activities was EUR 1.2 million (first nine months of 2023: EUR -2.4 million).
• Total working capital efficiency, expressed in Working Capital Days (WCD), was 35 days (first nine months of 2023: 27 days). Excluding services to Ericsson, Working Capital Efficiency was 25 days (first nine months of 2023: 49 days). WCD is affected by the demanding projects in terms of work and capital engagement, with additionally extended dynamics of collection of receivables in the domestic and export markets, including Ericsson.
• Cash and cash equivalents, including the short-term financial assets, as at September 30, 2024, amounted to EUR 54.8 million (33.8% of the total assets), and at the end of 2023 they amounted to EUR 76.9 million (39.9% of the total assets). In July 2024, the dividend was paid, amounting to EUR 19.9 million.
• The Group has a solid balance sheet with the total assets of EUR 162.4 million as at September 30, 2024, down by 15.7% compared to the end of 2023, mainly as the result of lower customer receivables due to lower sales revenue in managed services segment and lower cash and cash equivalents, while the inventory (work-in-progress) records an increase due to contract execution dynamics. End of Q3 2024, the equity ratio was 39.7% (end of 2023: 37.6%).
• With related parties, the transactions were as follows: stable sale of products and services was realized, amounting to EUR 102.5 million (first nine months of 2023: EUR 104.2 million), while the procurement of products and services amounted to EUR 29.1 million (first nine months of 2023: EUR 28.7 million).
• As at September 30, 2024, balances outstanding with related parties were as follows: receivables amounted to EUR 33.1 million (end of 2023: EUR 37.4 million), and payables amounted to EUR 10.9 million (end of 2023: EUR 15.1 million).

Business situation in major markets

In the domestic market sales revenue amounted to EUR 38.5 million (first nine months of 2023: EUR 80.5 million), down by 52.2% year-over-year, primarily as a result of non-renewal of the contract with Hrvatski Telekom regarding managed services. Moreover, the operators are focused on 5G network monetization and have slowed down capital investments in the mobile telecom infrastructure.

The activities of implementation of Ericsson dual-mode 5G Core for 4G/5G core network of Hrvatski Telekom are ongoing as planned. The cooperation on modernization and extension of the radio part of mobile network in line with the exclusive multi-year agreement successfully continues. Hrvatski Telekom has won the Ookla® Speedtest Awards™ for the fastest mobile network and the best mobile coverage in Croatia, for the sixth year in a row. HT's mobile network achieved the best Speed Score™ result of 148.81, which also represents the best Speed Score™ result that was ever recorded in Croatia when testing all generations of mobile networks.

With A1 Hrvatska, we continue to work on extension of coverage and capacity of the 5G radio network, as well as on the modernization and construction of the convergent core network and the modernization of microwave transmission systems.

In the Digital Society segment, we signed a new contract with the Ministry of the Interior of the Republic of Croatia regarding green border monitoring system. With the Croatian Ministry of Justice, Public Administration and Digital Transformation and the State Geodetic Administration, we have contracted the maintenance of the Joint Information System of Land Registry and Cadaster. With the City of Osijek, we have signed a contract regarding the development and implementation of the single and comprehensive City web and mobile app, in which our consortium partner is A1 Hrvatska. With the company Split parking d.o.o., we contracted the replacement and expansion of the existing sensor system for vehicle detection in street parking lots.

As regards the CEZIH system, Ericsson Nikola Tesla is responsible for the maintenance of Subsystem 1, i.e. "Information subsystem of the Software of the central part of the CEZIH integrated information system at the primary, secondary and tertiary level of health care", while the entire CEZIH system consists of four subsystems. Due to obsolete infrastructure, it was necessary to migrate CEZIH's hardware and software base to a new technological environment, after which the activities of optimization of the system's operation followed. Considering the complexity of the system, various hardware and software components, including the ones which are not the products and solutions of our company and many functionalities, the optimization of the system's operation in a new environment, while at the same time securing the system's operation, is an extremely demanding technical process. The system's occasional unavailability was mainly caused by the activities mentioned. From the beginning of 2024 until now, the system was available 99.57% of the time, and in the first nine months of 2024, more than 650 million transactions were orderly executed, which include ePrescriptions, eReferrals, etc.

In export markets (excluding services to Ericsson) sales revenue amounted to EUR 25.2 million (first nine months of 2023: EUR 20.9 million), up by 20.8% year-over-year.

In Kosovo, with the operator IPKO, the activities are ongoing on the modernization and expansion of the functionalities of its core network, as well as on the expansion of coverage and capacity of 5G network. With the operator Telekom Kosova we have been working on the modernization and expansion of mobile network capacity.

With HT Mostar we have been working on the implementation of the latest technological version of the Ericsson IMS (IP Multimedia Subsystem) solution, as well as the introduction of VoLTE (Voice over LTE) service. New activities related to the expansion of radio access network and transmission network of this operator have been contracted.

With Crnogorski Telekom, the activities are ongoing on the implementation of Ericsson dual-mode 5G Core for 4G/5G core network.

In the Digital Society segment, a contract was signed with the company Logicom Solutions from Cyprus on the replacement of the land administration information system of the Department of Lands and Surveys of Cyprus. The commissioning party of this solution is the Deputy Ministry of Research, Innovation and Digital Policy of Cyprus.

In Ericsson market sales revenue remained at the same level year-over-year and amounted to EUR 104.4 million (first nine months of 2023: EUR 104.5 million). The trend of higher engagement of experts from the Services and Solutions Center on projects for the customers of Ericsson Nikola Tesla continues. Revenue from R&D activities are increasing year-over-year.

In Q3, Ericsson Nikola Tesla's R&D Center has gained new responsibilities for the development of 5G Radio Access Network (RAN), which is strategically important as it will also enable us to build additional E2E capability within networks software/modules.

The main development projects within R&D Center were in the segments: Remote Radio, Massive MIMO, Software Defined Infrastructure and G4 baseband, which are important for Ericsson technology leadership. The organization remains focused on efficient deliveries of high-quality software, agile organization and continuous improvement and optimization of the way of working.

Experts from the Customer Services and Solutions Center, in addition to customers of Ericsson Nikola Tesla Group, were engaged on projects for Ericsson customers through activities of creating solutions and defining network parameters, and optimization and integration of solutions and technologies in many EU Member States and other countries such as: the United Kingdom, Switzerland, Norway, the United States of America, Canada, Australia, India, Mexico, etc. These are complex projects that, among other activities, included the introduction of 5G technology, operational and business support systems, as well as projects of introduction of core solutions in Cloud.

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

Good results were achieved in the work with the company Aeris Communications on projects regarding IoT.

The teams working on activities in the field of IT& Engineering Services, in addition to providing support and achieving excellent results on test environment management projects and IT operations for Ericsson corporation, also have a key role in the processes of Ericsson Nikola Tesla Group's digital transformation.

Other information

Extraordinary General Meeting of Ericsson Nikola Tesla, joint-stock company will be held on November 22, 2024, at the registered office of the Company in Zagreb, Krapinska 45. The agenda and the materials which serve as the basis to reach decisions are published on the Company's web site https://www.ericsson.hr/en/20241011 general-meeting.

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@ericssonnikolatesla.com E-mail: orhideja.gjenero@ericssonnikolatesla.com E-mail: odnosi.investitori@ericssonnikolatesla.com

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

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, 2024 to September 30, 2024 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

Ericsson Nikola Tesla d.d. Consolidated statement of comprehensive income for the period ended 30 September 2024

	2024	2023
	EUR '000	EUR '000
Sales revenue	168.063	205.897
Cost of sales	-145.776	-177.144
Gross profit	__ 22.287	__ 28.753
Selling expenses	-3.921	-3.900
Administrative expenses	-4.880	-4.693
Other operating income	4.472	5.136
Other operating expenses	-	-554
Impairment loss on financial assets	-12	-2
Operating profit	__ 17.947	__ 24.739
Finance income	__ 1.497	__ 426
Finance expense	-655	-133
Finance income/(expense), net	__ 841	__ 293
Profit before tax	__ 18.788	__ 25.032
Income tax	-6.901	-4.559
Profit for the year	__ 11.887	__ 20.473
Other comprehensive income	__ -	__ -32
Total comprehensive income for the year	__ 11.887	__ 20.441
Earnings per share (EUR)	__ 8,97	__ 15,49

Ericsson Nikola Tesla d.d. Consolidated statement of financial position as at 30 September 2024

	2024	2023
	EUR '000	EUR '000
ASSETS
Non-current assets
Property, plant and equipment	13.896	14.729
Right of use assets	14.511	15.028
Intangible assets	937	385
Loans and receivables	1.605	2.587
Deferred tax assets	2.506	2.506
	__	__
Total non-current assets	33.455 __	35.235 __
Current assets
Inventories	17.894	9.931
Trade receivables	17.498	28.603
Receivables from related parties	33.063	37.402
Other receivables	2.579	1.496
Income tax receivable	1.133	786
Prepayments	1.957	2.254
Financial assets at fair value through profit or loss	4.344	4.235
Cash and cash equivalents	50.462 __	72.655 __
Total current assets	128.930 __	157.362 __
TOTAL ASSETS	162.385	192.597
EQUITY AND LIABILITIES	__	__
Equity
Share capital	17.674	17.674
Treasury shares	-808	-1.256
Legal and other reserves	1.797	1.230
Reserve for treasury shares	3.451	4.157
Retained earnings	42.353 __	50.660 __
Total equity	64.467 __	72.465 __
Non-current liabilities
Borrowings	114	114
Lease liabilities	12.853	13.250
Other non-curent liabilities	6	12
Employee benefits	1.037	943
Total non-current liabilities	__ 14.010	__ 14.319
Current liabilities	__	__
Payables to related parties	10.882	15.062
Borrowings	-	469
Trade and other payables	23.727	38.467
Income tax payable	1.891	690
Provisions	1.069	1.583
Accrued charges and deferred revenue	18.622	20.400
Contract liabilities	25.567	27.085
Lease liabilities	2.150	2.057
Total current liabilities	_ 83.908 _	_ 105.813 _
Total liabilities	97.918	120.132
TOTAL EQUITY AND LIABILITIES	__ 162.385	__ 192.597
	__	__

Ericsson Nikola Tesla d.d. Consolidated statement of cash flows for the period ended 30 September 2024

	EUR '000	EUR '000
Cash flows from operating activities
Profit before tax	18.788	25.032
	_	_
Adjustments for:
Depreciation and amortisation	4.061	4.432
Impairment losses and reversals	36	584
Gain on sale of property, plant and equipment	-42	-11
Net loss/(gain) on remeasurement of financial assets	-109	-64
Amortisation of discount	0	-8
Interest income	-1.384	-351
Dividend income	-1	-
Interest expense	651	151
Foreign exchange (gain)/loss, net	-43	-101
Share-based payments	252 _	452 _
Changes in working capital
In receivables	17.425	-7.275
In inventories	-7.888	-16.289
In provisions	-419	-591
In payables	-23.495	-6.115
Cash generated from operations	_ 7.833	_ -152
Interest paid	_ -657	_ -133
Income taxes paid	-5.989	-2.140
Net cash from (used in) operating activities	_ 1.187	_ -2.426
Cash flows from investing activities	_	_
Interest received	1.339	426
Dividends received	1	-
Proceeds from sale of property, plant and equipment	19	7
Purchases of property, plant and equipment, and intangible assets	-2.093	-1.038
Deposits given to financial institutions - net	-	261
Net cash from/(used in) investing activities	_ -734	_ -343
Cash flows from financing activities	_	_
Repayment of borrowings	-936	-1.816
Purchase of treasury shares	-258	-110
Dividends paid	-19.888	-7.927
Payment of lease liabilities	-1.557	-1.981
Net cash used in financing activities	_ -22.638	_ -11.833
Effects of exchange rate changes on cash and cash equivalents	_ -8	_ 20
Net increase/(decrease) in cash and cash equivalents	_ -22.193	_ -14.583
Cash and cash equivalents at the beginning of the year	72.655 _	69.872 _
Cash and cash equivalents at the end of the year	50.462 _	55.289 _

2024 2023

Ericsson Nikola Tesla d.d.

Consolidated statement of changes in equity

for the period ended 30 September 2024

	Share capital	Treasury shares	Legal and other reserves	Reserve for treasury shares	Translation reserve	Retained earnings	Total
	EUR '000	EUR '000	EUR '000	EUR '000	EUR '000	EUR '000	EUR '000
As at 1 January 2023	17.674	-2.268	884	5.353	-3	36.174	57.814
Changes in equity for the period:
Total comprehensive income	-	-	-	-	3	22.194	22.197
Dividend distribution	__ -	__ -	__ -	__ -	__ -	__ -7.927	__ -7.927
Purchase of treasury shares	-	-184	-	-	-	-	-184
Shares granted	-	1.196	-	-1.196	-	-	-
Transfer	-	-	346	-	-	-346	-
Disposal of foreign operation	-	-	-	-	-	-42	-42
Share-based payments	-	-	-	-	-	607	607
Total contributions by and distributions to owners of the parent recognized directly in equity	__ -	__ 1.012	__ 346	__ -1.196	__ -	__ -7.708	__ -7.546
As at 31 December 2023	__ 17.674	__ -1.256	__ 1.230	__ 4.157	__ -	__ 50.660	__ 72.465
As at 1 January 2024	17.674	-1.256	1.230	4.157	-	50.660	72.465
Changes in equity for the period:
Total comprehensive income	-	-	-	-	-	11.887	11.887
Dividend distribution	__ -	__ -	__ -	__ -	__ -	__ -19.879	__ -19.879
Purchase of treasury shares	-	-258	-	-	-	-	-258
Shares granted	-	706	-	-706	-	-	-
Transfer	-	-	566	-	-	-566	-
Share-based payments	-	-	-	-	-	252	252
Total contributions by and distributions to owners of the parent recognized directly in equity	__ -	__ 448	__ 566	__ -706	__ -	__ -20.193	__ -19.885
As at 30 September 2024	__ 17.674	__ -808	__ 1.796	__ 3.451	__ -	__ 42.354	__ 64.467

Annex 1
		ISSUER'S GENERAL DATA
Reporting period:	1/1/2024	to	9/30/2024
Year:	2024
Quarter:	3.
	Quarterly financial statements
		Issuer's home Member
Registration number (MB):	03272699	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 2891 (end of the reporting
Consolidated report: KD		(KN-not consolidated/KD-consolidated)	KN	KD
Audited: RN	(RN-not audited/RD-audited)		RN	RD
Names of subsidiaries (according to IFRS):		Registered office:
				MB:
	Libratel d.o.o.		Zagreb, Selska 93	1449613
	ETK BH d.o.o		Mostar, Kralja Petra Krešimira 4	65-01-0996-11
Ericsson Nikola Tesla Servisi d.o.o.			Zagreb, Krapinska 45	80921748
				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.
Certified auditor: Domagoj Hrkać	(name of the audit firm)

BALANCE SHEET balance as at 30.09.2024

Submitter: ERICSSON NIKOLA TESLA D.D. Item	ADP	Last day of the preceding business	in EUR 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)	002	35,234,659	33,455,328
I INTANGIBLE ASSETS (ADP 004 to 009)	003	384,504	936,890
1 Research and development	004	0	0
2 Concessions, patents, licences, trademarks, software and other	005	37,764	375,086
rights 3 Goodwill 4 Advances for the purchase of intangible assets	006 007	0 0	0 0
5 Intangible assets in preparation	008	346,740	561,804
6 Other intangible assets	009	0	0
II TANGIBLE ASSETS (ADP 011 to 019)	010	29,757,052	28,407,037
1 Land	011	2,071,185	2,071,185
2 Buildings	012	20,329,321	18,910,095
3 Plant and equipment	013	4,937,485	4,565,802
4 Tools, working inventory and transportation assets	014	2,337,396	2,578,405
5 Biological assets	015	0	0
6 Advances for the purchase of tangible assets	016	0	0
7 Tangible assets in preparation	017	78,710	270,976
8 Other tangible assets	018	2,955	10,574
9 Investment property	019	0	0
III FIXED FINANCIAL ASSETS (ADP 021 to 030)	020	1,542,087	852,346
1 Investments in holdings (shares) of undertakings within the group	021	0	0
2 Investments in other securities of undertakings within the group	022	0	0
3 Loans, deposits, etc. to undertakings within the group	023	0	0
4. Investments in holdings (shares) of companies linked by virtue of participating interests	024	0	0
5 Investment in other securities of companies linked by virtue of participating interests	025	0	0
6 Loans, deposits etc. to companies linked by virtue of participating interests 7 Investments in securities	026 027	0 0	0 0
8 Loans, deposits, etc. given	028	1,542,087	852,346
9 Other investments accounted for using the equity method	029	0	0
10 Other fixed financial assets	030	0	0
IV RECEIVABLES (ADP 032 to 035)	031	1,044,939	752,978
1 Receivables from undertakings within the group 2 Receivables from companies linked by virtue of participating	032	0	0
interests	033	0	0
3 Customer receivables	034	936,670	648,772
4 Other receivables	035	108,269	104,206
V DEFERRED TAX ASSETS	036	2,506,077	2,506,077
C) CURRENT ASSETS (ADP 038+046+053+063)	037	155,108,421	126,973,228
I INVENTORIES (ADP 039 to 045)	038	9,931,484	17,893,774
1 Raw materials and consumables	039	762,520	2,064,253
2 Work in progress	040	9,168,725	15,829,282
3 Finished goods	041	0	0
4 Merchandise	042	0	0
5 Advances for inventories	043	239	239
6 Fixed assets held for sale	044	0	0
7 Biological assets	045	0	0
II RECEIVABLES (ADP 047 to 052)	046	68,286,984	53,583,783
1 Receivables from undertakings within the group 2 Receivables from companies linked by virtue of participating	047	0	0
interests	048	37,402,454	33,063,187
3 Customer receivables	049	28,602,863	17,498,790
4 Receivables from employees and members of the undertaking	050	0	0
5 Receivables from government and other institutions	051	788,930	1,540,718
6 Other receivables	052	1,492,737	1,481,088
III CURRENT FINANCIAL ASSETS (ADP 054 to 062)	053	4,234,974	5,033,693
1 Investments in holdings (shares) of undertakings within the group	054	0	0
2 Investments in other securities of undertakings within the group	055	0	0
3 Loans, deposits, etc. to undertakings within the group	056	0	0
4 Investments in holdings (shares) of companies linked by virtue of participating interests	057	0	0
5 Investment in other securities of companies linked by virtue of participating interests	058	0	0
6 Loans, deposits etc. to companies linked by virtue of participating interests	059	0	0
7 Investments in securities	060	4,234,974	4,343,534
8 Loans, deposits, etc. given	061	0	690,159
9 Other financial assets IV CASH AT BANK AND IN HAND D ) PREPAID EXPENSES AND ACCRUED INCOME	062 063	0 72,654,979	0 50,461,978
E) TOTAL ASSETS (ADP 001+002+037+064) OFF-BALANCE SHEET ITEMS	064 065 066	2,253,709 192,596,789 0	1,956,907 162,385,463 0
LIABILITIES A) CAPITAL AND RESERVES (ADP 068 to
070+076+077+083+086+089)	067	72,464,817	64,466,993
I INITIAL (SUBSCRIBED) CAPITAL	068	17,674,030	17,674,030
II CAPITAL RESERVES	069	0	0
III RESERVES FROM PROFIT (ADP 071+072-073+074+075)	070	4,131,225	4,439,564
1 Legal reserves	071	1,230,445	1,796,548
2 Reserves for treasury shares	072	4,156,663	3,451,160
3 Treasury shares and holdings (deductible item)	073	-1,255,883	-808,144
4 Statutory reserves	074	0	0
5 Other reserves	075	0	0
IV REVALUATION RESERVES	076	0	0
V FAIR VALUE RESERVES AND OTHER (ADP 078 to 082)	077	0	0
1 Financial assets at fair value through other comprehensive income	078	0	0
(i.e. available for sale) 2 Cash flow hedge - effective portion	079	0	0
3 Hedge of a net investment in a foreign operation - effective portion	080	0	0
4 Other fair value reserves	081	0	0
5 Exchange differences arising from the translation of foreign operations (consolidation)	082	0	0
VI RETAINED PROFIT OR LOSS BROUGHT FORWARD (ADP 084- 085)	083	28,465,251	30,466,056
1 Retained profit	084	28,465,251	30,466,056
2 Loss brought forward	085	0	0
VII PROFIT OR LOSS FOR THE BUSINESS YEAR (ADP 087-088) 1 Profit for the business year 2 Loss for the business year	086 087	22,194,311 22,194,311 0	11,887,343 11,887,343 0
VIII MINORITY (NON-CONTROLLING) INTEREST B) PROVISIONS (ADP 091 to 096)	088 089 090	0 942,552	0 1,036,966
1 Provisions for pensions, termination benefits and similar	091	942,552	1,036,966
obligations 2 Provisions for tax liabilities	092	0	0
3 Provisions for ongoing legal cases	093	0	0
4 Provisions for renewal of natural resources	094	0	0
5 Provisions for warranty obligations	095	0	0
6 Other provisions	096	0	0
C) LONG-TERM LIABILITIES (ADP 098 to 108)	097	13,376,477	12,972,676
1 Liabilities to undertakings within the group	098	0	0
2 Liabilities for loans, deposits, etc. of undertakings within the group	099	0	0
3 Liabilities to companies linked by virtue of participating interests		0	0
4 Liabilities for loans, deposits etc. of companies linked by virtue of participating interests	100 101	0	0
5 Liabilities for loans, deposits etc.	102	0	0
6 Liabilities to banks and other financial institutions	103	13,364,073	12,966,324
7 Liabilities for advance payments	104	0	0
8 Liabilities to suppliers	105	0	0
9 Liabilities for securities	106	0	0
10 Other long-term liabilities	107	12,404	6,352
11 Deferred tax liability	108	0	0
D) SHORT-TERM LIABILITIES (ADP 110 to 123)	109	72,536,420	50,297,758
1 Liabilities to undertakings within the group	110	0	0
2 Liabilities for loans, deposits, etc. of undertakings within the group	111	0	0
3 Liabilities to companies linked by virtue of participating interests	112	15,062,490	10,882,067
4 Liabilities for loans, deposits etc. of companies linked by virtue of participating interests 5 Liabilities for loans, deposits etc.	113 114	0 0	0 0
6 Liabilities to banks and other financial institutions	115	2,526,298	2,150,732
7 Liabilities for advance payments	116	14,207,996	10,578,242
8 Liabilities to suppliers	117	12,027,014	8,121,553
9 Liabilities for securities	118	0	0
10 Liabilities to employees	119	21,428,393	11,879,278
11 Taxes, contributions and similar liabilities	120	5,701,541	5,616,670
12 Liabilities arising from the share in the result	121	0	0
13 Liabilities arising from fixed assets held for sale	122	0	0
14 Other short-term liabilities	123	1,582,688	1,069,216
E) ACCRUALS AND DEFERRED INCOME	124	33,276,523	33,611,070
F) TOTAL – LIABILITIES (ADP 067+090+097+109+124)	125	192,596,789	162,385,463
G) OFF-BALANCE SHEET ITEMS	126	0	0

for the period 01.01.2024 to 30.09.2024 STATEMENT OF PROFIT OR LOSS

in EUR

Submitter: ERICSSON NIKOLA TESLA D.D.	ADP		Same period of the previous year	Current period
Item	code	Cumulative	Quarter	Cumulative	Quarter
1 I OPERATING INCOME (ADP 002 to 006)	2 001	3 211,032,357	4 70,378,904	5 172,534,994	6 60,811,532
1 Income from sales with undertakings within the group 2 Income from sales (outside group)	002 003	0 205,896,772	0 67,939,247	0 168,063,032	0 59,194,915
3 Income from the use of own products, goods and services 4 Other operating income with undertakings within the group	004 005	0 0	0 0	0 0	0 0
5 Other operating income (outside the group) II OPERATING EXPENSES (ADP 08+009+013+017+018+019+022+029)	006 007	5,135,585 186,293,156	2,439,657 60,363,388	4,471,962 154,587,882	1,616,617 55,978,821
1 Changes in inventories of work in progress and finished goods	008	-17,192,019	-6,534,802	-6,661,101	-215,792
2 Material costs (ADP 010 to 012) a) Costs of raw materials and consumables	009 010	91,916,824 40,927,167	31,027,613 13,271,220	59,175,833 41,584,201	22,451,297 14,782,684
b) Costs of goods sold c) Other external costs	011 012	0 50,989,657	0 17,756,393	0 17,591,632	0 7,668,613
3 Staff costs (ADP 014 to 016) a) Net salaries and wages	013 014	99,469,072 60,639,893	32,065,446 19,286,167	91,135,308 55,871,585	29,950,169 18,150,556
b) Tax and contributions from salary costs c) Contributions on salaries	015 016	27,444,628 11,384,551	9,006,170 3,773,109	24,785,695 10,478,028	8,233,204 3,566,409
4 Depreciation 5 Other costs	017 018	4,432,334 6,440,980	1,385,176 2,194,930	4,061,216 6,690,721	1,324,241 2,287,968
6 Value adjustments (ADP 020+021) a) fixed assets other than financial assets	019 020	-29,118 0	-29,118 0	-74,511 0	0 0
b) current assets other than financial assets 7 Provisions (ADP 023 to 028)	021	-29,118	-29,118	-74,511	0
a) Provisions for pensions, termination benefits and similar obligations	022 023	698,959 679,456	287,811 278,795	248,741 310,940	169,263 179,777
b) Provisions for tax liabilities c) Provisions for ongoing legal cases	024 025	0 0	0 0	0 0	0 0
d) Provisions for renewal of natural resources e) Provisions for warranty obligations	026 027	0 19,503	0 9,016	0 48,159	0 24,405
f) Other provisions 8 Other operating expenses	028 029	0 556,124	0 -33,668	-110,358 11,675	-34,919 11,675
III FINANCIAL INCOME (ADP 031 to 040) 1 Income from investments in holdings (shares) of undertakings within the	030	425,918	219,846	1,496,503	410,135
group 2 Income from investments in holdings (shares) of companies linked by	031	0	0	0	0
virtue of participating interests 3 Income from other long-term financial investment and loans granted to	032	0	0	0	0
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	0	0
6 Income from other long-term financial investments and loans 7 Other interest income	036 037	0 350,526	0 206,780	0 1,384,290	0 372,703
8 Exchange rate differences and other financial income 9 Unrealised gains (income) from financial assets	038 039	3,409 0	-20,115 0	0 0	-9,454 0
10 Other financial income IV FINANCIAL EXPENSES (ADP 042 to 048)	040 041	71,983 133,301	33,181 46,315	112,213 655,381	46,886 109,138
1 Interest expenses and similar expenses with undertakings within the group	042	0	0	0	0
2 Exchange rate differences and other expenses from operations with undertakings within the group	043	0	0	0	0
3 Interest expenses and similar expenses	044	133,301	46,315	651,130	104,887
4 Exchange rate differences and other expenses 5 Unrealised losses (expenses) from financial assets	045 046	0 0	0 0	4,251 0	4,251 0
6 Value adjustments of financial assets (net) 7 Other financial expenses	047 048	0 0	0 0	0 0	0 0
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	050 051	0 0	0 0	0 0	0 0
PARTICIPATING INTEREST VIII SHARE IN LOSS OF JOINT VENTURES	052	0	0	0	0
IX TOTAL INCOME (ADP 001+030+049 +050) X TOTAL EXPENDITURE (ADP 007+041+051 + 052)	053 054	211,458,275 186,426,457	70,598,750 60,409,703	174,031,497 155,243,263	61,221,667 56,087,959
XI PRE-TAX PROFIT OR LOSS (ADP 053-054) 1 Pre-tax profit (ADP 053-054)	055 056	25,031,818 25,031,818	10,189,047 10,189,047	18,788,234 18,788,234	5,133,708 5,133,708
2 Pre-tax loss (ADP 054-053) XII INCOME TAX	057 058	0 4,558,666	0 1,899,576	0 6,900,891	0 947,624
XIII PROFIT OR LOSS FOR THE PERIOD (ADP 055-059) 1 Profit for the period (ADP 055-059)	059	20,473,152	8,289,471	11,887,343	4,186,084
2 Loss for the period (ADP 059-055)	060 061	20,473,152 0	8,289,471 0	11,887,343 0	4,186,084 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	062	0	0	0	0
(ADP 063-064) 1 Pre-tax profit from discontinued operations	063	0	0	0	0
2 Pre-tax loss on discontinued operations XV INCOME TAX OF DISCONTINUED OPERATIONS	064 065	0 0	0 0	0 0	0 0
1 Discontinued operations profit for the period (ADP 062-065) 2 Discontinued operations loss for the period (ADP 065-062)	066 067	0 0	0 0	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) 2 Pre-tax loss (ADP 068)	069 070	0 0	0 0	0 0	0 0
XVII INCOME TAX (ADP 058+065) XVIII PROFIT OR LOSS FOR THE PERIOD (ADP 068-071)	071 072	0 0	0 0	0 0	0 0
1 Profit for the period (ADP 068-071) 2 Loss for the period (ADP 071-068)	073	0	0	0	0
APPENDIX to the P&L (to be filled in by undertakings that draw up consolidated annual financial statements)	074	0	0	0	0
XIX PROFIT OR LOSS FOR THE PERIOD (ADP 076+077) 1 Attributable to owners of the parent	075 076	0 0	0 0	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	078 079	20,473,152 -32,167	8,289,471 -4,141	11,887,343 0	4,186,084 0
(ADP 80+ 87) III Items that will not be reclassified to profit or loss (ADP 081 to 085)
1 Changes in revaluation reserves of fixed tangible and intangible	080	0	0	0	0
assets 2 Gains or losses from subsequent measurement of equity instruments	081	0	0	0	0
at fair value through other comprehensive income 3 Fair value changes of financial liabilities at fair value through	082	0	0	0	0
statement of profit or loss, attributable to changes in their credit risk 4 Actuarial gains/losses on the defined benefit obligation	083 084	0 0	0 0	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	-32,167	-4,141	0	0
1 Exchange rate differences from translation of foreign operations	088	-32,167	-4,141	0	0
2 Gains or losses from subsequent measurement of debt securities at fair value through other comprehensive income	089	0	0	0	0
3 Profit or loss arising from effective cash flow hedging 4 Profit or loss arising from effective hedge of a net investment in a foreign	090	0	0	0	0
operation 5 Share in other comprehensive income/loss of companies linked by virtue	091	0	0	0	0
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	-32,167	-4,141	0	0
VI COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (ADP 078+097)	098	20,440,985	8,285,330	11,887,343	4,186,084
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	20,440,985	8,285,330	11,887,343	4,186,084
1 Attributable to owners of the parent 2 Attributable to minority (non-controlling) interest	100 101	20,440,985 0	8,285,330 0	11,887,343 0	4,186,084 0

STATEMENT OF CASH FLOWS - indirect method for the period 01.01.2024 to 30.09.2024

Submitter: ERICSSON NIKOLA TESLA D.D.			in EUR
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	25,031,818	18,788,234
a) Depreciation	002 003	5,084,947 4,432,334	3,421,520 4,061,216
b) Gains and losses from sale and value adjustment of fixed tangible and intangible assets	004	-10,653	-42,363
c) Gains and losses from sale and unrealised gains and losses and value adjustment of financial assets	005	-64,332	-108,560
d) Interest and dividend income	006	-350,526	-1,385,164
e) Interest expenses	007	150,646	651,130
f) Provisions	008	0	0
g) Exchange rate differences (unrealised)	009	-100,538	-43,018
h) Other adjustments for non-cash transactions and unrealised gains and losses	010	1,028,016	288,279
I Cash flow increase or decrease before changes in working capital (ADP 001+002)	011	30,116,765	22,209,754
3 Changes in the working capital (ADP 013 to 016)	012	-30,269,242	-14,377,116
a) Increase or decrease in short-term liabilities	013	-6,114,927	17,425,165
b) Increase or decrease in short-term receivables	014	-7,274,529	-7,887,779
c) Increase or decrease in inventories	015	-16,288,696	-419,058
d) Other increase or decrease in working capital	016	-591,090	-23,495,444
II Cash from operations (ADP 011+012)	017	-152,477	7,832,638
4 Interest paid	018	-133,258	-657,113
5 Income tax paid A) NET CASH FLOW FROM OPERATING ACTIVITIES (ADP 017 to 019)	019 020	-2,140,318 -2,426,053	-5,988,773 1,186,752
Cash flow from investment activities
1 Cash receipts from sales of fixed tangible and intangible assets	021	7,486	19,428
2 Cash receipts from sales of financial instruments	022	0	0
3 Interest received	023	425,611	1,339,213
4 Dividends received	024	0	874
5 Cash receipts from repayment of loans and deposits	025	261,445	0
6 Other cash receipts from investment activities	026	0	0
III Total cash receipts from investment activities (ADP 021 to 026)	027	694,542	1,359,515
1 Cash payments for the purchase of fixed tangible and intangible assets	028	-1,037,715	-2,093,483
2 Cash payments for the acquisition of financial instruments	029	0	0
3 Cash payments for loans and deposits for the period	030	0	0
4 Acquisition of a subsidiary, net of cash acquired 5 Other cash payments from investment activities	031 032	0 0	0 0
IV Total cash payments from investment activities (ADP 028 to 032)	033	-1,037,715	-2,093,483
B) NET CASH FLOW FROM INVESTMENT ACTIVITIES (ADP 027 +033)	034	-343,173	-733,968
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	-1,815,848	-935,571
2 Cash payments for dividends	041	-7,927,347	-19,887,975
3 Cash payments for finance lease	042	-1,980,682	-1,556,536
4 Cash payments for the redemption of treasury shares and decrease in initial (subscribed) capital	043	-109,500	-257,764
5 Other cash payments from financing activities	044	0	0
VI Total cash payments from financing activities (ADP 040 to 044)	045	-11,833,377	-22,637,846
C) NET CASH FLOW FROM FINANCING ACTIVITIES (ADP 039 +045)	046	-11,833,377	-22,637,846
1 Unrealised exchange rate differences in respect of cash and cash equivalents	047	19,531	-7,939
D) NET INCREASE OR DECREASE IN CASH FLOWS (ADP 020+034+046+047)	048	-14,583,072	-22,193,001
E) CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD	049	69,871,698	72,654,979
F) CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD(ADP 048+049)	050	55,288,626	50,461,978

STATEMENT OF CHANGES IN EQUITY for the period from 1/1/2024 to	9/30/2024														in EUR
Item	ADP	Initial (subscribed)			Reserves for	Treasury shares		Revaluation	Attributable to owners of the parent Fair value of financial assets through other Cash flow hedge -	Hedge of a net investment in a	Exchange rate Other fair value differences from	Retained profit /	Profit/loss for the	Total attributable to	Minority (non controlling)	Total capital and
	code	capital		Capital reserves Legal reserves	treasury shares	and holdings (deductible item)		Statutory reserves Other reserves reserves	comprehensive effective portion income (available for sale)	foreign operation - effective portion	reserves translation of foreign operations	loss brought forward	business year	owners of the parent	interest	reserves
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 2 Changes in accounting policies	01 02	17,674,033 0		0 883,702 0 0	5,352,791 0	2,268,251 0	0 0	0 0	0 0 0 0	0 0 0 0	0 0	-2,864 36,174,536 0	0 0 0	57,813,947 0	0 0	57,813,947 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	17,674,033		0 883,702	5,352,791	2,268,251	0	0	0 0	0 0	0	-2,864 36,174,536	0	57,813,947	0	57,813,947
5 Profit/loss of the period	05	0		0 0	0	0	0	0	0 0	0 0	0	0	0 22,194,311	22,194,311	0	22,194,311
6 Exchange rate differences from translation of foreign operations	06	0		0 0	0	0	0	0	0 0	0 0	0	2,864	0 0	2,864	0	2,864
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 through other comprehensive income (available for sale)	08	0		0 0	0	0	0	0	0 0	0 0	0	0	0 0	0	0	0
9 Profit or loss arising from effective cash flow hedge	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	13	0		0 0	0	0	0	0	0 0	0 0	0	0	0 0	0	0	0
14 Tax on transactions recognised directly in equity	14	0		0 0	0	0	0	0	0 0	0 0	0	0	0 0	0	0	0
15 Decrease in initial (subscribed) capital (other than arising from the pre-bankruptcy settlement procedure or from the reinvestment of profit) 16 Decrease in initial (subscribed) capital arising from the pre-bankruptcy settlement	15	0		0 0	0	0	0	0	0 0	0 0	0	0	0 0	0	0	0
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 19 Payments from members/shareholders	18	0		0 0	0	183,760	0	0	0 0	0 0	0	0	0 0	-183,760	0	-183,760
20 Payment of share in profit/dividend	19 20	0 0		0 0 0 0	0 0	0 0	0 0	0 0	0 0 0 0	0 0 0 0	0 0	0 0 -7,927,194	0 0 0	0 -7,927,194	0 0	0 -7,927,194
21 Other distributions and payments to members/shareholders	21	-3		0 3	-1,196,128	-1,196,128	0	0	0 0	0 0	0	0 564,649	0	564,649	0	564,649
22 Transfer to reserves according to the annual schedule 23 Increase in reserves arising from the pre-bankruptcy settlement procedure	22 23	0 0		0 346,740 0 0	0 0	0 0	0 0	0 0	0 0 0 0	0 0 0 0	0 0	0 -346,740 0	0 0 0	0 0	0 0	0 0
24 Balance on the last day of the previous business year reporting period (ADP	24	17,674,030		0 1,230,445	4,156,663	1,255,883	0	0	0 0	0 0	0	0 28,465,251	22,194,311	72,464,817	0	72,464,817
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 TAX (ADP 06 to 14)	25	0		0 0	0	0	0	0	0 0	0 0	0	2,864	0 0	2,864	0	2,864
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	2,864	0 22,194,311	22,197,175	0	22,197,175
III TRANSACTIONS WITH OWNERS IN THE PREVIOUS PERIOD RECOGNISED DIRECTLY IN EQUITY (ADP 15 to 23)	27	-3		0 346,743	-1,196,128	-1,012,368	0	0	0 0	0 0	0	0 -7,709,285	0	-7,546,305	0	-7,546,305
Current period
1 Balance on the first day of the current business year 2 Changes in accounting policies	28 29	17,674,030 0		0 1,230,445 0 0	4,156,663 0	1,255,883 0	0 0	0 0	0 0 0 0	0 0 0 0	0 0	0 50,659,562 0	0 0 0	72,464,817 0	0 0	72,464,817 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	17,674,030		0 1,230,445	4,156,663	1,255,883	0	0	0 0	0 0	0	0 50,659,562	0	72,464,817	0	72,464,817
5 Profit/loss of the period	32	0		0 0	0	0	0	0	0 0	0 0	0	0	0 11,887,343	11,887,343	0	11,887,343
6 Exchange rate differences from translation of foreign operations	33	0		0 0	0	0	0	0	0 0	0 0	0	0	0 0	0	0	0
7 Changes in revaluation reserves of fixed tangible and intangible assets	34	0		0 0	0	0	0	0	0 0	0 0	0	0	0 0	0	0	0
8 Gains or losses from subsequent measurement of financial assets at fair value
through other comprehensive income (available for sale)	35	0		0 0	0	0	0	0	0 0	0 0	0	0	0 0	0	0	0
9 Profit or loss arising from effective cash flow hedge	36	0		0 0	0	0	0	0	0 0	0 0	0	0	0 0	0	0	0
10 Profit or loss arising from effective hedge of a net investment in a foreign operation 11 Share in other comprehensive income/loss of companies linked by virtue of	37	0		0 0	0	0	0	0	0 0	0 0	0	0	0 0	0	0	0
participating interests	38	0		0 0	0	0	0	0	0 0	0 0	0	0	0 0	0	0	0
12 Actuarial gains/losses on the defined benefit obligation 13 Other changes in equity unrelated to owners	39 40	0 0		0 0 0 0	0 0	0 0	0 0	0 0	0 0 0 0	0 0 0 0	0 0	0 0	0 0 0 0	0 0	0 0	0 0
14 Tax on transactions recognised directly in equity	41	0		0 0	0	0	0	0	0 0	0 0	0	0	0 0	0	0	0
15 Decrease in initial (subscribed) capital (other than arising from the pre-bankruptcy settlement procedure or from the reinvestment of profit)	42	0		0 0	0	0	0	0	0 0	0 0	0	0	0 0	0	0	0
16 Decrease in initial (subscribed) capital arising from the pre-bankruptcy settlement procedure	43	0		0 0	0	0	0	0	0 0	0 0	0	0	0 0	0	0	0
17 Decrease in initial (subscribed) capital arising from the reinvestment of profit	44	0		0 0	0	0	0	0	0 0	0 0	0	0	0 0	0	0	0
18 Redemption of treasury shares/holdings	45	0		0 0	0	257,764	0	0	0 0	0 0	0	0	0 0	-257,764	0	-257,764
19 Payments from members/shareholders 20 Payment of share in profit/dividend	46 47	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 -19,879,530	0 0 0	0 -19,879,530	0 0	0 -19,879,530
21 Other distributions and payments to members/shareholders	48	0		0 0	-705,503	-705,503	0	0	0 0	0 0	0	0 252,127	0	252,127	0	252,127
22 Carryforward per annual plane	49	0		0 566,103	0	0	0	0	0 0	0 0	0	0 -566,103	0	0	0	0
23 Increase in reserves arising from the pre-bankruptcy settlement procedure 24 Balance on the last day of the current business year reporting period (ADP 31	50	0		0 0	0	0	0	0	0 0	0 0	0	0	0 0	0	0	0
to 50)	51	17,674,030		0 1,796,548	3,451,160	808,144	0	0	0 0	0 0	0	0 30,466,056	11,887,343	64,466,993	0	64,466,993
APPENDIX TO THE STATEMENT OF CHANGES IN EQUITY (to be filled in by undertakings that draw up financial statements in accordance with the IFRS)
I OTHER COMPREHENSIVE INCOME FOR THE CURRENT PERIOD, NET OF TAX (ADP 33 to 41)	52	0		0 0	0	0	0	0	0 0	0 0	0	0	0 0	0	0	0
II COMPREHENSIVE INCOME OR LOSS FOR THE CURRENT PERIOD (ADP 32 do 52) III TRANSACTIONS WITH OWNERS IN THE CURRENT PERIOD RECOGNISED	53	0		0 0	0	0	0	0	0 0	0 0	0	0	0 11,887,343	11,887,343	0	11,887,343
DIRECTLY IN EQUITY (ADP 42 to 50)	54	0		0 566,103	-705,503	-447,739	0	0	0 0	0 0	0	0 -20,193,506	0	-19,885,167	0	-19,885,167

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 2024

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) 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

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

accounting policies have changed, a description of the nature and effect of the changes (item 16.A (a) IAS 34 - Interim financial reporting)

d) a description of the financial performance in the case of the issuer whose business is seasonal (items 37 and 38 IAS 34 - Interim financial reporting) e) other comments prescribed by IAS 34 - Interim financial reporting f) in the notes to quarterly periods financial statements, in addition to the information stated above, information in respect of the following matters shall be disclosed:

1. undertaking's name, registered office (address), legal form, country of establishment, entity's registration number and, if applicable, the indication whether the undertaking is undergoing liquidation, bankruptcy proceedings, shortened termination proceedings or extraordinary administration

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

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

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

security 6. average number of employees during the financial year

1. where, in accordance with the regulations, the undertaking capitalised on the cost of salaries in part or in full, information on the amount of the total cost of employees during the year broken down into the amount directly debiting the costs of the period and the amount capitalised on the value of the assets during the period, showing separately the total amount of net salaries and the amount of taxes, contributions from salaries

and contributions on salaries 8. where a provision for deferred tax is recognised in the balance sheet, the deferred tax balances at the end of the financial year, and the movement in those balances during the financial year

1. 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

1. 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

2. the name, registered office and legal form of each of the undertakings of which the undertaking is a member having unlimited liability

3. 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

4. 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

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

6. 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 th t d th fi i l ff t f t i l t i i ft th b l h t d t hi h t fl t d i th fit d l t b l h t

a)

Explanation of business events relevant to understanding changes in the statement of financial position and financial performance are published in Press info/Management letter

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 consistently applied to all the periods presented.

b)

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

d) Annual Report.

e)

The issuer does not have sesonal bussines activities.

Segment reporting

	Networks			Digital Services	Managed Services		Other		Unallocated		Total
	30.09.2024	30.09.2023	30.09.2024	30.09.2023	30.09.2024	30.09.2023		30.09.2024 30.09.2023	30.09.2024	30.09.2023	30.09.2024	30.09.2023
	EUR 000	EUR 000	EUR 000	EUR 000	EUR 000	EUR 000	EUR 000	EUR 000	EUR 000	EUR 000	EUR 000	EUR 000
Segment sales revenue	106,103	104,034	59,551	53,859	2,013	47,627	396	377	0	0	168,063	205,897
Operating profit	16,347	17,798	7,244	7,611	-788	3,981	24	42	-4,880	-4,693	17,947	24,739

Transactions with related parties:

	30.09.2024 EUR 000	30.09.2023 EUR 000
Sales	102,513	104,169
Purchases	29,124	28,654

Balances with related parties

	30.09.2024 EUR 000	12/31/2023 EUR 000
Receivable	33,063	37,402
Payable	10,882	15,062

f) 1.

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.

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

1. 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

2. remote. The Group has no commitments concerning pensions that are in scope of IAS 19.

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

The 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.

1. The average number of employees during the reporting period is 2899 (Q3 2023: 3555). 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.

1. The Group has no participating interest.

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

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

12.

1. and 14. The Group has no shares in companies having unlimited liability.

2. The company Telefonaktiebolaget LM Ericsson (Sweden, Torshamnsgatan 21, SE-164 83 Stockholm) prepares the consolidated financial statements for the larger Group of

Those consolidated reports are available at www.ericsson.com/en/investors/financial-reports. 16.

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

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

APPENDIX (Reconciliation of the differences arrising due to structure and classification of the positions in TFI-POD in XLS format compared to 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 028 Loans, deposits, etc. given, 034 Customer receivables, 035 Other receivables.

Within the category Current assets in Statement of financial position total amount of Other receivables, Income tax receivables, Financial assets at fair value through profit or loss is indicated in TFI-POD form under AOP 051 Receivables from government and other institutions,052 Other receivables,060

Investments in securities, 061 Loans, deposits, etc. given.

Within the category Equity in Statement of financial position total amount of Retained earnings is indicated in TFI-POD form under AOP 083 Retaind profit/loss brought forward and 086 Profit or Loss for the business year.

Additionally, within the category Non-current liabilities in Statement of Financial position total amount of Borrowings and Lease liabilities are shown under AOP 103 Liabilities

to bank and other financial institutions.

Within the category Current liabilities in Statement of financial position total amount of Trade and other payables and Income tax payable is indicated in TFI-POD in AOP 117 Liabilities to suppliers,119 Liabilities to employees,120 Taxes, contributions and similar liabilities.

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.