Ericsson Nikola Tesla d.d.

Legal Proceedings Report • Feb 20, 2025

Enlightening
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Technologies

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

Zagreb, February 20, 2025

Disclosure of inside information according to Article 17 of the regulation (EU) No 596/2014 (MAR)

Ericsson Nikola Tesla d.d., Zagreb, Krapinska 45, MBS: 080002028 OIB: 84214771175

The Croatian Competition Agency Finds an Infringement of Competition Law in the Market for Private Branch Exchange (PBX) Systems – Fine Imposed

On 19 February 2025, ENT received a decision from the Croatian Competition Agency, determining that ENT and several other involved undertakings participated in a restrictive agreement in violation of Article 8 of the Croatian Competition Act. The infringement concerns the alleged participation, of more than 10 years ago, in the anti-competitive agreement within the market for the sale and maintenance of private branch exchange (PBX) systems involving several companies.

The average annual value of sales of ENT goods and/or services within the scrutinized relevant market amounted to about 0.1 % of the company's total revenue.

ENT has a firm stance that it has not committed the alleged infringement and emphasizes that the decision is not final. Furthermore, ENT considers that the alleged infringement is subject to absolute statutory limitation and that the Agency was obligated to terminate the proceedings. ENT will file an administrative lawsuit against the Agency's decision on both procedural and substantive grounds, contesting its validity with legal and factual arguments.

The Agency has imposed a monetary fine of EUR 785,570.58 on ENT. ENT will only be required to pay this amount, or a reduced sum, if the administrative dispute before the High Administrative Court of the Republic of Croatia is concluded against it, that is, once the Agency's decision becomes final. ENT emphasizes that there is a likelihood that the Agency's decision will be annulled in its entirety, in which case ENT will not be required to pay any amount.

Provisions for potential liabilities, including this proceeding, have already been recorded in the company's financial records and almost entirely cover the amount of the non-final monetary fine imposed.

Enlightening
New
Technologies

In the field of telecommunications, digital transformation, research and development work and through the activities of centers for ICT services, Ericsson Nikola Tesla is a regional supplier of communication products and related services and innovative ICT solutions for the digitization of various industries and public services and services. The company has the largest research and development center in Croatia and in the region and is a leader in the software export segment. The company is dedicated to the creation of advanced technologies, responsible business and sustainable development for the benefit of society and individuals. Shares of Ericsson Nikola Tesla are traded in the Regular Market of the Zagreb Stock Exchange under the stock exchange symbol ERNT-R-A.

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