Ericsson Nikola Tesla d.d.

Annual Report • Feb 24, 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 2021

Highlights:

• Sales revenue: MHRK 2,203.9
• Gross margin: 11.5%
• Operating profit: MHRK 186.4
• Profit before tax: MHRK 194.2
• Net profit: MHRK 177.3
• Cash flow from operating activities: MHRK 369.9

All Ericsson Nikola Tesla Group's key performance indicators show growth and a continuation of excellent business results.

Gordana Kovačević, the President of Ericsson Nikola Tesla, commented:

"In Ericsson Nikola Tesla Group, 2021 will be remembered as another year during which, with a lot of skills, knowledge and dedication, we effectively managed health, economic and social consequences of the pandemic and despite these, and all other challenges, achieved defined business targets. Strategic multi-year agreements we signed in 2020 and 2021 with the customers in Croatian and export markets, new responsibilities assigned by Ericsson to our R&D Center and other expert centers for end-to-end solutions and services, our experts' quality and innovativeness, as well as a continuous focus on new areas of growth and transformation processes in the company, had a significant positive impact on the company's results. We have been carefully monitoring and analyzing all the risks, including the disruptions in the global supply chain, as well as economic and political situation in certain markets, and our business results show that we managed to remove or mitigate most of them. We have continued to build an innovative organizational culture of high performance and invest in the future in order to secure successful and long-term sustainable business performance. Another successful year can be attributed to our continuous focus on the customers, investment in technology leadership and exceptional contribution of our employees. I would like to use this opportunity to thank all our employees for their focus, professionalism and integrity, their perseverance and dedication even in such demanding circumstances, as well as our customers and partners for their confidence in us.

In order to support our customers and secure company's business growth, we have continued to recruit, and in 2021 more than 400 new employees strengthened our big team. The Group now has almost 3,500 employees, mainly highly educated STEM experts. The biggest software design center in Croatia is in Ericsson Nikola Tesla, where more than 1700 experts work on the latest technologies, and that has the potential for further growth. The Group continues to be at the top of the list of the most successful Croatian exporters and is a leader in exporting knowledge.

Compared to 2020, sales revenue increased by 8.9% to MHRK 2,203.9, and all market segments (domestic, export and Ericsson) recorded growth. Gross margin increased significantly to 11.5% (2020: 8.6%). Gross profit increased by 45.9% to MHRK 254.3, as a result of business mix, lower transition and transformation costs, and the effect of operational and cost efficiency programs. This resulted in strong increase of operating profit by 78.6% to MHRK 186.4. Net profit increased by 87.6% to MHRK 177.3. A strong cash flow from operating activities was also achieved, amounting to MHRK 369.9, and thus at the end of 2021, cash and cash equivalents, including short-term financial assets, amounted to MHRK 510.5.

When we talk about global trends, COVID-19 pandemic has once again confirmed the importance of digitalization and the need to connect all business processes. In operator segment, the most significant event of Q3 2020 in Croatia, a public auction for the allocation of the frequency spectrum for 5G network, gave momentum to 5G technology implementation. Our strategic partners, Hrvatski Telekom (HT) and A1 Hrvatska have intensified the implementation of 5G technology across Croatia, and our company, as the provider of solutions, equipment and services for 5G, supported them in this demanding process. We are proud to be recognized and valued as a reliable partner that provides the best customer experience on a quality and safe infrastructure, and this is also confirmed by independent international tests that rank our customers' networks among the best in the world year after year. As regards 5G, we also wish to highlight the contribution of our Research & Development Center (R&D) experts, who have been working within global teams on further development of this technology, as well as our experts from other centers, who worked on the implementation and optimization of 5G networks for Ericsson strategic customers worldwide.

In the segment of build and maintenance of fixed and mobile telecommunication infrastructure of HT, which was carried out by our daughter-company Ericsson Nikola Tesla Servisi d.o.o., we have continued a successful realization of the agreed objectives and activities, and would like to emphasize the completion of FTTH connections build for more than 100,000 households.

In ICT for Industry & Society, we have been focused on e-Health, e-Business, public safety and innovative solutions for Industry 4.0, which strengthened our overall business results. Our team developed and tested the upgrade of Central Healthcare Information System of the Republic of Croatia (CEZIH), and in cooperation with the Croatian Ministry of Health, Ministry of the Interior of the Republic of Croatia, and partners, integrated it in the comprehensive solution for EU Digital COVID Certificate. We also made a significant step forward in e-Environment. Through WaterQ project, co-financed by European funds, we are developing a solution to improve water quality control for the systems of public health and water supply.

In cooperation with all the stakeholders of the ecosystem, which includes operators, industry, public administration and education sector, we try to use 5G innovation potential in the best way possible to create new opportunities and revenues in various sectors. In this way we contribute to sustainability and global competitiveness of Croatian economy, in addition to creating new job opportunities.

In export markets, we would like to highlight the contracts signed with the operator HT Mostar (Bosnia and Hercegovina) on upgrade and expansion of LTE RAN network, expansion of transmission network and software upgrade and expansion of systems for wireline switching. We have also continued a successful cooperation with our long-term customers, the operators Ipko (Kosovo), Crnogorski Telekom (Montenegro), beCloud (Belarus), Beltelekom (Belarus) and A1 (Belarus) on the expansion, modernization and maintenance of telecommunication networks. In ICT solutions for Industry & Society, the implementation of the second phase of the national health IT platform in Belarus is ongoing. A challenging political situation in some markets, such as in Belarus, continues at the time this report is published. We have been monitoring the situation development and continue to estimate risks in order to timely respond to potential challenges. During the year, we have continued a successful cooperation with the Croatian Bank for Reconstruction and Development (HBOR) to additionally strengthen export in certain markets, and at the same time reduce the political and the financial risks to which the company is exposed to.

The delivery of services to Ericsson has been continuously increasing, and all the activities are ongoing as planned. R&D Center and other expert centers, owing to its experts' knowledge and work, continue to build a positive perception in global corporation and significantly contribute to our company's results. The majority of activities in R&D Center is related to the most important Ericsson's 5G/Cloud products in the segment of radio access and core telecommunication networks. A continuously high quality of software deliveries was recognized by a global customer, and in Q4 2021 an additional expansion of responsibilities was secured in the latest 5G/Cloud business and other technologies. We have continued a very good cooperation with faculties in Zagreb/Split/Osijek, and thus more than 150 students have the opportunity to daily learn and develop their skills by participating in research and development projects.

Furthermore, we have continued to work with students through our Summer Camp. Last year Summer Camp marked its 20th anniversary, and during this period 820 students participated in 380 projects, supported by 150 mentors.

In 2022, we expect increase in demand for ICT solutions to continue, which opens new opportunities for our company. We will continue to invest in research, development and implementation of modern ICT solutions, as well as our own digital transformation. Moreover, we will continue to invest in skills and knowledge of our employees, who are the key to our success, take care of their physical and mental health, and open new jobs. In this way, we secure our company's successful and long-term sustainable business performance and contribute to the realization of EU objectives in a digital decade. Having in mind the importance of ICT as the foundation of the networked society's digital infrastructure, we are positive about the further development of our industry, and the role Ericsson Nikola Tesla Group has in this process.

In addition to the opportunities it brings, 2022 will be a challenging year due to political and economic uncertainties, disruptions in supply chain, significant increase in energy prices, increase in the prices of materials, raw materials and services, and will demand great knowledge, leadership and strong focus on company's strategic directives. We remain focused on further risk management, profitability and cash flow, and on corporate social responsibility. We will put our maximum efforts to continue to be as efficient and as successful, both in overcoming challenges, as well as in the realization of new business opportunities. Excellent business results achieved in 2021 motivate us for further excellence in everything we do."

Financial highlights for the Group:

• Sales revenue amounted to MHRK 2,203.9 (2020: MHRK 2,023.0), up by 8.9% year-over-year, and the increase was recorded in all market segments. In total sales revenue, the domestic market accounted for 47.7%, services to Ericsson accounted for 40.8%, while other export markets accounted for 11.5%.
• Sales in the Networks segment amounted to MHRK 957.3 (2020: MHRK 980.5), Digital Services segment amounted to MHRK 582.0 (2020: MHRK 464.8), Managed Services segment amounted to MHRK 658.9 (2020: MHRK 569.6), and Emerging Business and Other amounted to MHRK 5.7 (2020: MHRK 8.1).
• Gross profit was MHRK 254.3 (2020: MHRK 174.4), up by 45.9% year-over-year, as a result of business mix, lower transition and transformation costs, and the effect of operational and cost efficiency programs. Gross margin increased to 11.5% (2020: 8.6%).
• Selling and administrative expenses were 10.6% higher year-over-year, amounting to MHRK 92.7 (2020: MHRK 83.8). The share of selling and administrative expenses in sales revenue was 4.2% (2020: 4.1%).
• Operating profit amounted to MHRK 186.4, up by 78.6% year-over-year (2020: MHRK 104.4) as a result of significant increase in gross profit.
• Gain from financial activities amounted to MHRK 7.8 (2020: MHRK 2.2) as a result of positive exchange differences and interest income.
• Profit before tax increased by 82.1% year-over-year to MHRK 194.2 (2020: MHRK 106.6).
• Net profit amounted to MHRK 177.3 (2020: MHRK 94.5), up by 87.6% year-over-year. Return on Sales (ROS) was 8.0% (2020: 4.7%).
• Cash flow from operating activities amounted to MHRK 369.9 (2020: MHRK 308.1) because of advanced payments and excellent cash collection from certain customers.
• Working Capital Efficiency, expressed in WCD, was 8 days (2020: 25 days), and excluding services to Ericsson, Working Capital Efficiency was 25 days (2020: 44 days). The reduced number of Working Capital Days is the result of finalization of demanding network modernization projects, which until now required a longer and a more intense engagement of material and human resources.
• Cash and cash equivalents, including short term financial assets, as at December 31, 2021, amounted to MHRK 510.5 (42.4% of the total assets), while at the end of 2020, they amounted to MHRK 314.0 (31.6% of the total assets). The increase of cash is the result of increase of business activities, good cash collection from customers and received advanced payments on certain contracts.
• The Group has a solid balance sheet with the total assets of MHRK 1,203.7 as at December 31, 2021, up by 21.1% compared to the end of 2020. The increase of balance sheet is mainly contributed by the workin progress (WIP) conditioned by the contract execution dynamics, new receivables as well as strong growth of cash in the observed period. Equity ratio was 33.6% (end of 2020: 34.8%).
• With related parties, the transactions were as follows: sales of products and services amounted to MHRK 900.0 (2020: MHRK 858.4), while the procurement of products and services amounted to MHRK 297.2 (2020: MHRK 314.7).
• As at December 31, 2021, balances outstanding with related parties were as follows: receivables amounted to MHRK 76.8 (end of 2020: MHRK 89.0), and payables MHRK 12.6 (end of 2020: MHRK 10.9).

Business situation in major markets

In the domestic market, sales revenue amounted to MHRK 1,051.2 (2020: MHRK 926.7), up by 13.4% yearover-year.

With the strategic partner Hrvatski Telekom, we signed 3 contracts related to design/ build of the passive part of FTTH network. The contracts are co-financed by the European Structural and Investment Funds and will enable the build of the next generation access networks (NGA) and fast and ultra-fast broadband access to network infrastructure for business and public users from remote, not as densely populated and not as developed areas of the Republic of Croatia. We have continued a successful realization of the Management Services Agreement for the construction and maintenance of fixed and mobile telecommunications infrastructure, supervision of the telecommunications network, and field maintenance of the active access and passive network, and we would like to highlight the build of FTTH connections for more than 100,000 households.

In the domain of the radio part of mobile network, the focus of our strategic parentship was on the activities related to 5G technology implementation. After the allocation of the frequency spectrum for 5G since mid-August 2021, HT enabled gigabit transfer speed in several towns across Croatia. Moreover, with the support of Ericsson Nikola Tesla's experts, in October 2021 the capabilities of 5G+ technology were demonstrated, with the achieved speeds of up to 4 Gbit/s, and network response time of only 10 milliseconds.

With the strategic partner A1 Hrvatska, important multi-year agreements were signed in 2021. The first agreement was signed in March in radio network and referred to multi-year cooperation on the introduction of 5G radio technology, as well as existing network modernization and expansion of capacities on LTE technology. The second important contract was signed during summer, and encompasses the convergent 5G core network that will, along with the existing core network, secure the possibility to provide an advanced 5G user experience as a response to increasing demands of end users and business clients of A1 Hrvatska. Following the procedure of frequency spectrum allocation in August 2021, A1 Hrvatska successfully launched 5G service into commercial operation on the frequencies 700 MHz and 3.5 GHz. Moreover, 5G service is also commercially active on the existing frequency spectrum by using the Dynamic Spectrum Sharing (DSS) technology. At the same time, a successful cooperation on the implementation of 5G radio access network was expanded by the delivery of antenna systems (Ericsson Antenna System), as well as the expansion and modernization of microwave transmission systems.

In regard to ICT solutions for Industry & Society, contracts were signed with the State Geodetic Administration and the Ministry of Justice and Public Administration for the development and upgrade of the One Stop Shop-OSS of the Joint Information System of Land Registry and Cadaster (JIS). With the Ministry of Justice and Public Administration a contract was signed for the creation of the central database for local and regional municipalities. With the company Odašiljači i veze d.o.o., we signed a contract for the implementation of private 5G network. With the Ministry of the Interior of the Republic of Croatia, we have continued the implementation of the state border monitoring solution. Moreover, further informatization of the Joint Information System of Land Registry and Cadaster has continued. For the Croatian Ministry of Health, further IT upgrade of the Central Healthcare Information System of the Republic of Croatia continued.

In export markets (excluding services to Ericsson) sales revenue amounted to MHRK 253.2 (2020: MHRK 234.4), up by 8.0% year-over-year.

In addition to the negative impact of COVID-19 pandemic, the political and economic crisis in certain markets has been additionally aggravating business performance. In operator segment, sales revenue decreased due to operators' investment dynamics, which was offset by the increase in revenue in the Industry & Society segment from the contract related to healthcare informatization in Belarus.

In Q4 2021, contracts with HT Mostar were signed for the upgrade and expansion of LTE RAN network, expansion of transmission network and software upgrade and expansion of wireline switching system. Thus, by using Ericsson solutions, HT Mostar will expand the capacities of 4G/4G+ network and increase coverage, which means better services and the best possible experience for end users.

We have continued the activities on the modernization and expansion of telecommunication network of Crnogorski Telekom and in cooperation with Ericsson Nikola Tesla, this operator was the first one in Montenegro to have implemented and tested 5G. With the operator IPKO we have agreed further expansion and upgrade of LTE RAN network, expansion of transmission network and software upgrade and expansion of system for packet network. In the Belarusian market, with caution and focus on business risks mitigation, several new contracts were signed related to mobile networks expansion of operators beCloud and A1 Belarus.

In ICT for Industry & Society, we have continued the implementation of the Central Software Platform for the Centralized e-Health System of the Republic of Belarus. During Q3, the project's first phase was accepted (creating project documents with the requested platform software specifications), and in Q4 we have continued the activities within the project's second phase (detailed specification of platform functionalities and software solution development). In the segment of Industry 4.0, we started the implementation of the management and monitoring platform of the industry's impact on the environment for EP HZHB – (Elektroprivreda Mostar).

In Ericsson market, sales revenue amounted to MHRK 899.5 (2020: MHRK 861.9), up by 4.4% year-over-year.

At the end of 2021, Ericsson Nikola Tesla's R&D Center had over 1500 employees. In the business segment Networks, besides the development of features related to classic and 5G products, a prototype presentation was successfully delivered, and we have also gained new responsibilities in Compute and Digital Silicon area. Within the business segment Digital Services in the area Mobile Switching Center, activities continued in automation and virtualization, and additional SIP (Session Initiation Protocol) features were prepared for final delivery. In the area Home Location Register, numerous features were delivered, and customer support requests were successfully executed. Within Cloud, besides the development and verification activities, transfer of new responsibilities is ongoing, and an increased scope of planned activities for 2022 was confirmed. In the area Unified Data Management, the work on a number of features and quality improvements is ongoing, as well as on the verification activities. In Service Area Networks, Wireline and Legacy, number of customer support activities were successfully executed, and support services for the next period were agreed.

The experts from the Center for Services and Solutions for Networks, in addition to projects for the customers of Ericsson Nikola Tesla Group, are included in the design and optimization activities and integration of various technologies for Ericsson customers in the United Kingdom, Germany, Sweden, Switzerland, Spain, Ireland, Denmark, Norway, Belgium, Czech Republic, Slovakia, Romania, Lithuania, Greece, Malta, Morocco, Algeria, Canada, USA, Saudi Arabia, Bahrein, Singapore, Kenya, India, Pakistan, Nigeria, Japan, Indonesia, Malaysia, Taiwan, Vietnam, Hong Kong, Brazil, Japan, SAR, etc. We also became one of the four Ericsson regional centers in the world for services in Networks – Service Area Network and build – Service Area Build.

The activities continued on the development and implementation of software tools for mobile networks management and optimization which are used in the network rollout by many operators worldwide, with which Ericsson and Ericsson Nikola Tesla do business.

Experts from Services and Solutions Center in the field of Digital Services, Media and Operations, in addition to projects for the customers of Ericsson Nikola Tesla Group, were also engaged on projects for Ericsson customers in the United Kingdom, Germany, Sweden, Switzerland, Denmark, Finland, France, Luxembourg, the Netherlands, Ireland, Norway, Lithuania, Italy, Greece, Albania, Macedonia, Czech Republic, Australia, Tahiti, Pakistan, Mexico, etc. These are complex projects of introduction of 5G technology, operational and business

support systems, as well as projects of introduction of core solutions in Cloud.

Within the program EU Insulae h2020 (Industry 4.0), we have been developing a platform for monitoring and management of energy flows on the island Unije. This includes building a platform which collects data for sensors' infrastructure based on IoT technologies, analyses the data and with the assistance of artificial intelligence provides recommendations to optimize consumption.

The teams working in IT& Engineering Services, in addition to providing excellent support and achieving excellent results on test environment management projects and IT operations for Ericsson corporation, also had a key role in transformation processes of Ericsson Nikola Tesla Group and provided quality support for a smooth work from home and remote support to customers.

The ICT segment for Industry and Society, in addition to many projects for Ericsson Nikola Tesla's customers, also achieved quality results on projects in IoT platforms and Connected Urban Traffic for the needs of Ericsson corporation.

Other information

Ericsson Nikola Tesla's major shareholders (as at December 31, 2021)

	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	30,961	2.33
Raiffeisenbank Austria d.d. / Raiffeisen voluntary pension fund	16,739	1.26
PBZ d.d. / custodian client account	10,703	0.80
PBZ d.d. / The Bank of New York as Custodian	9,860	0.74
OTP banka d.d. / OTP Index fund - open-end alternative investment fund with public offering	9,474	0.71
Ericsson Nikola Tesla d.d.	6,951	0.52
Vuleta Ivica	5,318	0.40
Other shareholders	424,167	31.85

Share price information in 2021:

Highest (HRK)	Lowest (HRK)	Closing (HRK)	Market cap. (in MHRK)
1,950.00	1,500.00	1,840.00	2,450.2

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, 2021 to December 31, 2021 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:

Snježana Bahtijari Orhideja Gjenero Company Communications Director 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 4556 Tel.: +385 1 365 4431 Mob.: +385 91 365 4556 Mob.: +385 91 365 4431 Fax: +385 1 365 3156 Fax: +385 1 365 3156 E-mail: snjezana.bahtijari@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 31 December 2021

	2021	2020
	HRK '000	HRK '000
Sales revenue	2.203.897	2.022.953
Cost of sales	-1.949.570	-1.848.582
Gross profit	__ 254.327	__ 174.371
Selling expenses	-42.455	-40.122
Administrative expenses	-50.290	-43.707
Other operating income	26.000	23.185
Impairment loss on financial assets	-1.158	-9.336
Operating profit	__ 186.424	__ 104.391
Finance income	__ 9.566	__ 6.125
Finance expense	-1.802	-3.884
Finance income/(expense), net	__ 7.764	__ 2.241
Profit before tax	__ 194.188	__ 106.632
Income tax	-16.840	-12.092
Profit for the year	__ 177.348	__ 94.540
Other comprehensive income	__ -115	__ -222
Total comprehensive income for the year	__ 177.233	__ 94.318
Earnings per share (HRK)	__ 133	__ 71

Ericsson Nikola Tesla d.d.

Consolidated statement of financial position

as at 31 December 2021

	2021	2020
	HRK '000	HRK '000
ASSETS Non-current assets
Property, plant and equipment	134.198	153.802
Right of use assets	52.087	53.955
Intangible assets	5.257	4.522
Loans and receivables	21.928	37.867
Deferred tax assets	15.606 __	9.541 __
Total non-current assets	229.076 __	259.687 __
Current assets
Inventories	142.852	86.616
Trade receivables Contract assets	201.473 -	193.332 -
Receivables from related parties	76.808	89.002
Other receivables	35.994	6.226
Income tax receivable	181	11.979
Prepayments	6.787	33.411
Financial assets at fair value through profit or loss	32.997	32.966
Cash and cash equivalents	477.487 __	281.056 __
Total current assets	974.579	734.587.510
TOTAL ASSETS	__ 1.203.655	__ 994.275.019
EQUITY AND LIABILITIES	__	__
Equity
Share capital	133.165	133.165
Treasury shares	-12.422	-506
Legal reserves	6.658	6.658
Reserve for treasury shares	36.512	13.904
Reserve of currency conversion	-397	-281
Retained earnings	240.526 __	192.934 __
Total equity	404.042 __	345.874 __
Non-current liabilities
Borrowings	17.031 33.674	30.387 37.384
Lease liabilities Other non-curent liabilities	446	1.095
Employee benefits	8.597	10.388
Total non-current liabilities	__ 59.748	__ 79.254
Current liabilities	__	__
Payables to related parties	12.628	10.937
Borrowings	14.134	14.316
Trade and other payables	253.501	230.553
Income tax payable	16.806	2.463
Provisions	13.601	13.718
Accrued charges and deferred revenue	120.483	87.262
Contract liabilities	289.976	192.322
Lease liabilities	18.736 __	17.576 __
Total current liabilities	739.865 __	569.147 __
Total liabilities	799.613	648.401
TOTAL EQUITY AND LIABILITIES	__ 1.203.655	__ 994.275
	__	__

Ericsson Nikola Tesla d.d. Consolidated statement of cash flows for the period ended 31 December 2021

	2021	2020
	HRK '000	HRK '000
Cash flows from operating activities
Profit before tax	194.188	106.632
	_	_
Adjustments for:
Depreciation and amortisation	57.096	55.686
Effects of lease derecognition	-19	-217
Impairment losses and reversals	760	-8.715
Gain on sale of property, plant and equipment	-68	-168
Net loss/(gain) on remeasurement of financial assets	-121	-265
Amortisation of discount	52	13
Interest income	-3.739	-6.023
Interest expense	1.728	1.943
Foreign exchange (gains)/losses, net	-4.806	4.823
Equity-settled transactions	4.404	3.269
	_	_
	249.475	156.978
Changes in working capital
In receivables	9.841	55.681
In inventories	-58.162	86.097
In provisions	-1.903	-2.589
In payables	177.205	15.112
	_	_
Cash generated from operations	376.456	311.279
	_	_
Interest paid	-1.991	-1.880
Income taxes paid	-4.518	-1.299
	_	_
Net cash from operating activities	369.947	308.100
	_	_
Cash flows from investing activities
Interest received	2.835	1.777
Dividends received	59	59
Proceeds from sale of property, plant and equipment	108	201
Purchases of property, plant and equipment, and intangible assets	-17.544	-59.649
Deposits given to financial institutions - net	-1.236	789
Receipt of government grant	1.324	11.261
Net change of financial assets at fair value through profit and loss	-	5.013
	_	_
Net cash used in investing activities	-14.454	-40.549
	_	_
Cash flows from financing activities
Proceeds from borrowings	-	53.182
Repayment of borrowings	-14.831	-46.369
Purchase of treasury shares	-14.307	-1.235
Dividends paid	-109.166	-65.231
Payment of lease liabilities	-22.807	-23.050
	_	_
Net cash used in financing activities	-161.111	-82.703
Effects of exchange rate changes on cash and cash equivalents	_ 2.049	_ -1.698
	_	_
Net increase/(decrease) in cash and cash equivalents	196.431	183.150
Cash and cash equivalents at the beginning of the year	281.056	97.906
	_	_
Cash and cash equivalents at the end of the year	477.487	281.056
	_	_

Annex 1		ISSUER'S GENERAL DATA
Reporting period:		1.1.2021	to	31.12.2021
Year:		2021
Quarter:		4.
		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	3471
Consolidated report:	KD	(KN-not consolidated/KD-consolidated)		KN	KD
Audited:	RN	(RN-not audited/RD-audited)		RN	RD
	Names of subsidiaries (according to IFRS):		Registered office:		MB:
	Libratel d.o.o.			Zagreb, Selska 93	1449613
	ETK BH d.o.o			Mostar, Kralja Petra Krešimira 4	5-01-0996-1
	on Nikola Tesla d.d. - Branch office of Kosovo			Republika Kosova, Kalabria, Obj 1., Bll 1, Kati 1 Nr.13	70633647
	Ericsson Nikola Tesla Servisi d.o.o.			Zagreb, Krapinska 45	80921748
	Ericsson Nikola Tesla BY d.o.o.			Bjelorusija, Minsk, Ulica Zibickaja 2	192753195
					Yes
Bookkeeping firm:	No	(Yes/No)			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 31.12.2021

Submitter: ERICSSON NIKOLA TESLA D.D.			in HRK
Item	ADP	Last day of the	At the reporting date
	code	preceding business	of the current period
1	2	year 3	4
A) RECEIVABLES FOR SUBSCRIBED CAPITAL UNPAID	001	0	0
B) FIXED ASSETS (ADP 003+010+020+031+036)	002	259.687.508	229.075.936
I INTANGIBLE ASSETS (ADP 004 to 009)	003	4.522.336	5.257.409
1 Research and development 2 Concessions, patents, licences, trademarks, software and other	004	0	0
rights	005	349.090	1.084.163
3 Goodwill	006	4.173.246	4.173.246
4 Advances for the purchase of intangible assets	007	0	0
5 Intangible assets in preparation	008	0	0
6 Other intangible assets	009	0	0
II TANGIBLE ASSETS (ADP 011 to 019)	010	207.756.432	186.284.651
1 Land	011	15.605.344	15.605.344
2 Buildings	012	77.990.000	91.238.625
3 Plant and equipment	013	60.927.031	46.800.326
4 Tools, working inventory and transportation assets	014	21.111.662	32.007.853
5 Biological assets	015	0	0
6 Advances for the purchase of tangible assets 7 Tangible assets in preparation	016 017	0	0
8 Other tangible assets	018	32.069.751 52.644	587.641 44.862
9 Investment property	019	0	0
III FIXED FINANCIAL ASSETS (ADP 021 to 030)	020	23.742.294	16.432.018
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 4. Investments in holdings (shares) of companies linked by virtue of	023	0	0
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	026	0	0
7 Investments in securities	027	0	0
8 Loans, deposits, etc. given	028	23.742.294	16.432.018
9 Other investments accounted for using the equity method	029	0	0
10 Other fixed financial assets IV RECEIVABLES (ADP 032 to 035)	030	0	0
1 Receivables from undertakings within the group	031	14.124.953	5.495.745
	032	0	0
2 Receivables from companies linked by virtue of participating interests	033	0	0
3 Customer receivables	034	13.688.818	5.127.139
4 Other receivables	035	436.135	368.606
V DEFERRED TAX ASSETS	036	9.541.493	15.606.113
C) CURRENT ASSETS (ADP 038+046+053+063)	037	701.176.687	967.792.434
I INVENTORIES (ADP 039 to 045)	038	86.616.333	142.851.933
1 Raw materials and consumables	039	22.285.408	39.150.582
2 Work in progress	040	64.329.125	103.699.551
3 Finished goods	041	0	0
4 Merchandise	042	0	0
5 Advances for inventories	043	1.800	1.800
6 Fixed assets held for sale	044	0	0
7 Biological assets	045	0	0
II RECEIVABLES (ADP 047 to 052)	046	296.498.370	301.127.701
1 Receivables from undertakings within the group 2 Receivables from companies linked by virtue of participating	047	0	0
interests	048	89.001.784	76.816.111
3 Customer receivables	049	193.332.095	201.464.545
4 Receivables from employees and members of the undertaking	050	0	0
5 Receivables from government and other institutions	051	12.714.303	3.467.925
6 Other receivables	052	1.450.188	19.379.120
III CURRENT FINANCIAL ASSETS (ADP 054 to 062)	053	37.006.148	46.325.762
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	056	0	0
participating interests 5 Investment in other securities of companies linked by virtue of	057	0	0
participating interests 6 Loans, deposits etc. to companies linked by virtue of participating	058	0	0
interests	059	0	0
7 Investments in securities	060	32.936.148	32.997.449
8 Loans, deposits, etc. given	061	4.070.000	13.328.313
9 Other financial assets	062	0	0
IV CASH AT BANK AND IN HAND	063	281.055.836	477.487.038
D ) PREPAID EXPENSES AND ACCRUED INCOME	064	33.410.824	6.787.111
E) TOTAL ASSETS (ADP 001+002+037+064)	065	994.275.019	1.203.655.481
OFF-BALANCE SHEET ITEMS LIABILITIES	066	0	0
A) CAPITAL AND RESERVES (ADP 068 to	067	345.873.801	404.042.075
I INITIAL (SUBSCRIBED) CAPITAL	068	133.165.000	133.165.000
II CAPITAL RESERVES	069	0	0
III RESERVES FROM PROFIT (ADP 071+072-073+074+075)	070	20.055.496	30.748.156
1 Legal reserves	071	6.658.250	6.658.250
2 Reserves for treasury shares	072	13.903.446	36.511.836
3 Treasury shares and holdings (deductible item)	073	-506.200	-12.421.930
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	-281.331	-396.587
1 Financial assets at fair value through other comprehensive income (i.e. available for sale)	078	0	0
2 Cash flow hedge - effective portion	079	0	0
3 Hedge of a net investment in a foreign operation - effective portion	080	0	0
4 Other fair value reserves 5 Exchange differences arising from the translation of foreign	081	0	0
operations (consolidation) VI RETAINED PROFIT OR LOSS BROUGHT FORWARD (ADP 084-	082	-281.331	-396.587
085)	083	98.394.647	63.177.357
1 Retained profit	084	98.394.647	63.177.357
2 Loss brought forward	085	0	0
VII PROFIT OR LOSS FOR THE BUSINESS YEAR (ADP 087-088)	086	94.539.989	177.348.149
1 Profit for the business year	087	94.539.989	177.348.149
2 Loss for the business year	088	0	0
VIII MINORITY (NON-CONTROLLING) INTEREST	089	0	0
B) PROVISIONS (ADP 091 to 096) 1 Provisions for pensions, termination benefits and similar	090	10.387.874	8.597.453
obligations 2 Provisions for tax liabilities	091	10.387.874	8.597.453
3 Provisions for ongoing legal cases	092	0	0
	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	68.866.524	51.150.940
1 Liabilities to undertakings within the group	098	0	0
2 Liabilities for loans, deposits, etc. of undertakings within the group	099	0	0
3 Liabilities to companies linked by virtue of participating interests	100	0	0
4 Liabilities for loans, deposits etc. of companies linked by virtue of participating interests	101	0	0
5 Liabilities for loans, deposits etc.	102	0	0
6 Liabilities to banks and other financial institutions	103	67.771.047	50.705.458
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	1.095.477	445.482
11 Deferred tax liability	108	0	0
D) SHORT-TERM LIABILITIES (ADP 110 to 123)	109	300.070.206	381.934.073
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	10.936.701	12.628.233
4 Liabilities for loans, deposits etc. of companies linked by virtue of	113	0	0
participating interests 5 Liabilities for loans, deposits etc.	114	0	0
6 Liabilities to banks and other financial institutions	115	31.891.618	32.870.157
7 Liabilities for advance payments	116	10.512.321	52.527.993
8 Liabilities to suppliers	117	103.431.782	94.629.186
9 Liabilities for securities	118	0	0
10 Liabilities to employees	119	99.116.679	132.549.730
11 Taxes, contributions and similar liabilities	120	30.467.967	43.127.961
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	13.713.138	13.600.813
E) ACCRUALS AND DEFERRED INCOME F) TOTAL – LIABILITIES (ADP 067+090+097+109+124)	124	269.076.614	357.930.940
G) OFF-BALANCE SHEET ITEMS	125	994.275.019	1.203.655.481
	126	0	0

for the period 01.01.2021 to 31.12.2021 STATEMENT OF PROFIT OR LOSS

in HRK

Submitter: ERICSSON NIKOLA TESLA D.D.	ADP		Same period of the previous year	Current period
Item 1	code	Cumulative	Quarter	Cumulative	Quarter 6
I OPERATING INCOME (ADP 002 to 006) 1 Income from sales with undertakings within the group	2 001	3 2.046.138.145	4 588.725.007	5 2.229.897.003	679.145.611
2 Income from sales (outside group) 3 Income from the use of own products, goods and services	002 003	0 2.022.953.367	0 579.419.704	0 2.203.896.629	0 670.869.510
4 Other operating income with undertakings within the group 5 Other operating income (outside the group)	004 005	0 0	0 0	0 0	0 0
II OPERATING EXPENSES (ADP 08+009+013+017+018+019+022+029)	006 007	23.184.778 1.941.747.570	9.305.303 560.580.634	26.000.374 2.043.473.385	8.276.101 624.877.643
1 Changes in inventories of work in progress and finished goods 2 Material costs (ADP 010 to 012)	008 009	108.979.767 851.153.456	28.760.071 253.990.560	-39.393.414 1.007.662.729	5.474.639 303.561.904
a) Costs of raw materials and consumables b) Costs of goods sold	010 011	331.300.818 0	109.096.607 0	359.193.619 0	115.591.592 0
c) Other external costs 3 Staff costs (ADP 014 to 016)	012 013	519.852.638 849.947.435	144.893.953 235.584.719	648.469.110 947.523.264	187.970.312 279.326.126
a) Net salaries and wages	014	505.077.413	138.819.555	580.744.589	166.887.828
b) Tax and contributions from salary costs c) Contributions on salaries	015 016	245.734.906 99.135.116	68.604.145 28.161.019	255.415.327 111.363.348	77.726.249 34.712.049
4 Depreciation 5 Other costs	017 018	55.686.417 52.377.349	13.306.348 17.327.056	57.096.107 58.106.636	13.942.673 21.678.811
6 Value adjustments (ADP 020+021) a) fixed assets other than financial assets	019 020	1.891.026 0	358.076 0	1.926.560 0	566.068 0
b) current assets other than financial assets 7 Provisions (ADP 023 to 028)	021 022	1.891.026 12.376.087	358.076 2.565.323	1.926.560 9.393.738	566.068 -698.562
a) Provisions for pensions, termination benefits and similar b) Provisions for tax liabilities	023 024	11.574.491 0	1.988.833 0	8.572.998 0	2.463.711 0
c) Provisions for ongoing legal cases d) Provisions for renewal of natural resources	025 026	0 0	0 0	0 0	0 0
e) Provisions for warranty obligations f) Other provisions	027 028	548.310 253.286	323.203 253.287	820.740 0	192.042 -3.354.315
8 Other operating expenses III FINANCIAL INCOME (ADP 031 to 040)	029 030	9.336.033 6.125.171	8.688.481 4.298.404	1.157.765 9.566.145	1.025.984 5.006.475
1 Income from investments in holdings (shares) of undertakings within the group	031	0	0	0	0
2 Income from investments in holdings (shares) of companies linked by virtue of participating interests	032	0	0	0	0
3 Income from other long-term financial investment and loans granted to undertakings within the group	033	0	0	0	0
4 Other interest income from operations with undertakings within the group	034	0	0	0	0
5 Exchange rate differences and other financial income from operations with undertakings within the group	035	0	-88.601	0	0
6 Income from other long-term financial investments and loans 7 Other interest income	036 037	0 6.023.171	0 4.285.005	0 3.738.539	0 1.251.154
8 Exchange rate differences and other financial income 9 Unrealised gains (income) from financial assets	038 039	0 0	0 0	4.546.850 0	2.644.166 0
10 Other financial income IV FINANCIAL EXPENSES (ADP 042 to 048)	040 041	102.000 3.883.762	102.000 942.523	1.280.756 1.802.095	1.111.155 441.459
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	-22.095
3 Interest expenses and similar expenses 4 Exchange rate differences and other expenses	044 045	1.835.928 2.034.790	369.795 627.864	1.750.627 0	412.086 0
5 Unrealised losses (expenses) from financial assets 6 Value adjustments of financial assets (net)	046 047	0 0	0 0	0 0	0 0
7 Other financial expenses V SHARE IN PROFIT FROM UNDERTAKINGS LINKED BY VRITUE	048	13.044	-55.136	51.468	51.468
OF PARTICIPATING INTERESTS VI SHARE IN PROFIT FROM JOINT VENTURES	049 050	0 0	0 0	0 0	0 0
VII SHARE IN LOSS OF COMPANIES LINKED BY VIRTUE OF PARTICIPATING INTEREST	051	0	0	0	0
VIII SHARE IN LOSS OF JOINT VENTURES IX TOTAL INCOME (ADP 001+030+049 +050)	052 053	0 2.052.263.316	0 593.023.411	0 2.239.463.148	0 684.152.086
X TOTAL EXPENDITURE (ADP 007+041+051 + 052) XI PRE-TAX PROFIT OR LOSS (ADP 053-054)	054 055	1.945.631.332 106.631.984	561.523.157 31.500.254	2.045.275.480 194.187.668	625.319.102 58.832.984
1 Pre-tax profit (ADP 053-054) 2 Pre-tax loss (ADP 054-053)	056 057	106.631.984 0	31.500.254 0	194.187.668 0	58.832.984 0
XII INCOME TAX XIII PROFIT OR LOSS FOR THE PERIOD (ADP 055-059)	058	12.091.994 94.539.990	4.111.429 27.388.825	16.839.519 177.348.149	-3.786.110 62.619.094
1 Profit for the period (ADP 055-059) 2 Loss for the period (ADP 059-055)	059 060	94.539.990 0	27.388.825 0	177.348.149 0	62.619.094 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	061
(ADP 063-064) 1 Pre-tax profit from discontinued operations	062 063	0 0	0 0	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
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
1 Profit for the period (ADP 068-071) 2 Loss for the period (ADP 071-068)	073 074
APPENDIX to the P&L (to be filled in by undertakings that draw up consolidated annual financial statements) XIX PROFIT OR LOSS FOR THE PERIOD (ADP 076+077)	075	0	0	0	0
1 Attributable to owners of the parent 2 Attributable to minority (non-controlling) interest	076 077	0 0	0 0	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	94.539.990	27.388.826	177.348.149	62.619.094
II OTHER COMPREHENSIVE INCOME/LOSS BEFORE TAX (ADP 80+ 87)	079	-221.682	-118.937	-115.256	45.430
III Items that will not be reclassified to profit or loss (ADP 081 to 085)	080	0	0	0	0
1 Changes in revaluation reserves of fixed tangible and intangible assets	081	0	0	0	0
2 Gains or losses from subsequent measurement of equity instruments at fair value through other comprehensive income	082	0	0	0	0
3 Fair value changes of financial liabilities at fair value through 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 IV Items that may be reclassified to profit or loss (ADP 088 to 095)	086 087	0 -221.682	0 -118.937	0 -115.256	0 45.430
1 Exchange rate differences from translation of foreign operations	088	-221.682	-118.937	-115.256	45.430
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	090	0	0	0	0
foreign operation 5 Share in other comprehensive income/loss of companies linked by	091	0	0	0	0
virtue of participating interests	092	0	0	0	0
6 Changes in fair value of the time value of option 7 Changes in fair value of forward elements of forward contracts	093 094	0 0	0 0	0 0	0 0
8 Other items that may be reclassified to profit or loss	095	0	0	0	0
9 Income tax relating to items that may be reclassified to profit or loss	096	0	0	0	0
V NET OTHER COMPREHENSIVE INCOME OR LOSS (ADP 080+087- 086 - 096) VI COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (ADP	097	-221.682	-118.937	-115.256	45.430
078+097) APPENDIX to the Statement on comprehensive income (to be filled in by undertakings that draw up consolidated statements)	098	94.318.308	27.269.889	177.232.893	62.664.524
VI COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (ADP 100+101)	099	94.318.308	27.269.889	177.232.893	62.664.524
1 Attributable to owners of the parent 2 Attributable to minority (non-controlling) interest	100 101	94.318.308 0	27.269.889 0	177.232.893 0	62.664.524 0

STATEMENT OF CASH FLOWS - indirect method
for the period 01.01.2021 to 31.12.2021

			in HRK
Submitter: ERICSSON NIKOLA TESLA D.D. Item	ADP code	Same period of the previous year	Current period
1	2	3	4
Cash flow from operating activities
1 Pre-tax profit 2 Adjustments (ADP 003 to 010):	001 002	106.631.983 50.346.889	194.187.668 55.287.848
a) Depreciation	003	55.686.417	57.096.107
b) Gains and losses from sale and value adjustment of fixed tangible and		-168.249	-68.590
intangible assets	004
c) Gains and losses from sale and unrealised gains and losses and value adjustment of financial assets	005	-265.282	-120.671
d) Interest and dividend income	006	-6.023.171	-3.738.539
e) Interest expenses	007	1.943.427	1.727.655
f) Provisions	008	0
g) Exchange rate differences (unrealised)	009	4.824.199	-4.805.647
h) Other adjustments for non-cash transactions and unrealised gains and losses	010	-5.650.452	5.197.533
I Cash flow increase or decrease before changes in working capital (ADP 001+002)	011	156.978.872	249.475.516
3 Changes in the working capital (ADP 013 to 016)	012	154.301.060	126.981.215
a) Increase or decrease in short-term liabilities	013	15.111.954	177.205.021
b) Increase or decrease in short-term receivables	014	55.681.355	9.841.100
c) Increase or decrease in inventories	015	86.096.732	-58.162.161
d) Other increase or decrease in working capital	016	-2.588.981	-1.902.745
II Cash from operations (ADP 011+012)	017	311.279.932	376.456.731
4 Interest paid	018	-1.880.409	-1.991.547
5 Income tax paid	019	-1.299.402	-4.518.572
A) NET CASH FLOW FROM OPERATING ACTIVITIES (ADP 017 to 019)	020	308.100.121	369.946.612
Cash flow from investment activities
1 Cash receipts from sales of fixed tangible and intangible assets	021	200.735	108.326
2 Cash receipts from sales of financial instruments	022	5.013.292	0
3 Interest received	023	1.777.366	2.834.683
4 Dividends received	024	58.616	59.371
5 Cash receipts from repayment of loans and deposits	025	788.977	0
6 Other cash receipts from investment activities	026	11.260.833	1.324.523
III Total cash receipts from investment activities (ADP 021 to 026)	027	19.099.819	4.326.903
1 Cash payments for the purchase of fixed tangible and intangible assets	028	-59.648.667	-17.544.310
2 Cash payments for the acquisition of financial instruments	029	0	0
3 Cash payments for loans and deposits for the period	030	0	-1.236.428
4 Acquisition of a subsidiary, net of cash acquired	031	0	0
5 Other cash payments from investment activities	032	0	0
IV Total cash payments from investment activities (ADP 028 to 032)	033	-59.648.667	-18.780.738
B) NET CASH FLOW FROM INVESTMENT ACTIVITIES (ADP 027 +033)	034	-40.548.848	-14.453.835
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	53.182.461	0
4 Other cash receipts from financing activities	038	0	0
V Total cash receipts from financing activities (ADP 035 to 038)	039	53.182.461	0
1 Cash payments for the repayment of credit principals, loans and other borrowings and debt financial instruments	040	-46.369.207	-14.830.171
2 Cash payments for dividends	041	-65.231.346	-109.165.903
3 Cash payments for finance lease	042	-23.049.950	-22.807.147
4 Cash payments for the redemption of treasury shares and decrease in initial (subscribed) capital	043	-1.234.760	-14.307.340
5 Other cash payments from financing activities	044	0	0
VI Total cash payments from financing activities (ADP 040 to 044)	045	-135.885.263	-161.110.561
C) NET CASH FLOW FROM FINANCING ACTIVITIES (ADP 039 +045)	046	-82.702.802	-161.110.561
1 Unrealised exchange rate differences in respect of cash and cash	047	-1.698.926	2.048.986
equivalents D) NET INCREASE OR DECREASE IN CASH FLOWS (ADP	048	183.149.545	196.431.202
020+034+046+047) E) CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE	049	97.906.291	281.055.836
PERIOD F) CASH AND CASH EQUIVALENTS AT THE END OF THE
PERIOD(ADP 048+049)	050	281.055.836	477.487.038

STATEMENT OF CHANGES IN EQUITY for the period from 1.1.2021 to	31.12.2021																	in HRK
Item	ADP code	Initial (subscribed) capital		Capital reserves Legal reserves	Reserves for treasury shares	Treasury shares and holdings (deductible item)		Statutory reserves Other reserves	Revaluation reserves	Attributable to owners of the parent Fair value of financial assets through other comprehensive	Cash flow hedge - effective portion	Hedge of a net investment in a foreign operation -	Other fair value reserves	Exchange rate differences from translation of	Retained profit / loss brought forward	Profit/loss for the business year	Total attributable to owners of the parent	Minority (non controlling) interest	Total capital and reserves
										income (available for sale)		effective portion		foreign operations
1 Previous period	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)
1 Balance on the first day of the previous business year	01	133.165.000	0	6.658.250	14.872.546	240.540		0 -59.649	0	0	0	0		0 0	160.357.289	0	314.752.896	0	314.752.896
2 Changes in accounting policies 3 Correction of errors	02 03	0 0	0 0	0 0	0 0	0 0		0 0 0 0	0 0	0 0	0 0	0 0		0 0 0 0	0 0	0 0	0 0	0 0	0 0
4 Balance on the first day of the previous business year (restated) (ADP 01 to 03)	04	133.165.000	0	6.658.250	14.872.546	240.540		0 -59.649	0	0	0	0		0 0	160.357.289	0	314.752.896	0	314.752.896
5 Profit/loss of the period	05	0	0	0	0	0		0 0	0	0	0	0		0 0	0	94.539.989	94.539.989	0	94.539.989
6 Exchange rate differences from translation of foreign operations	06	0	0	0	0	0		0 -221.682	0	0	0	0		0 0	0	0	-221.682	0	-221.682
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 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	0	1.234.760		0 0	0	0	0	0		0	0	0	-1.234.760	0	-1.234.760
19 Payments from members/shareholders 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	0 -65.230.956	0 0	0 -65.230.956	0 0	0 -65.230.956
21 Other distributions and payments to members/shareholders	21	0	0	0	-969.100	-969.100		0 0	0	0	0	0		0 0	3.268.314	0	3.268.314	0	3.268.314
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 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
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	13.903.446	506.200		0 -281.331	0	0	0	0		0 0	98.394.647	94.539.989	345.873.801	0	345.873.801
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 -221.682	0	0	0	0		0 0	0	0	-221.682	0	-221.682
II COMPREHENSIVE INCOME OR LOSS FOR THE PREVIOUS PERIOD (ADP 05+25)	26	0	0	0	0	0		0 -221.682	0	0	0	0		0 0	0	94.539.989	94.318.307	0	94.318.307
III TRANSACTIONS WITH OWNERS IN THE PREVIOUS PERIOD RECOGNISED	27	0	0	0	-969.100	265.660		0 0	0	0	0	0		0 0	-61.962.642	0	-63.197.402	0	-63.197.402
DIRECTLY IN EQUITY (ADP 15 to 23) Current period
1 Balance on the first day of the current business year 2 Changes in accounting policies	28	133.165.000	0	6.658.250	13.903.446	506.200		0 -281.331	0	0	0	0		0 0	98.394.647	94.539.989	345.873.801	0	345.873.801
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	13.903.446	506.200		0 -281.331	0	0	0	0		0 0	98.394.647	94.539.989	345.873.801	0	345.873.801
5 Profit/loss of the period	32	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	33	0	0	0	0	0		0 -115.256	0	0	0	0		0 0	0	0	-115.256	0	-115.256
7 Changes in revaluation reserves of fixed tangible and intangible assets 8 Gains or losses from subsequent measurement of financial assets at fair value	34	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)	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	37	0	0	0	0	0		0 0	0	0	0	0		0 0	0	0	0	0	0
11 Share in other comprehensive income/loss of companies linked by virtue of participating interests	38	0	0	0	0	0		0 0	0	0	0	0		0 0	0	0	0	0	0
12 Actuarial gains/losses on the defined benefit obligation 13 Other changes in equity unrelated to owners	39 40	0 0	0 0	0 0	0 0	0 0		0 0 0 0	0 0	0 0	0 0	0 0		0 0 0 0	0 0	0 0	0 0	0 0	0 0
14 Tax on transactions recognised directly in equity	41	0	0	0	0	0		0 0	0	0	0	0		0 0	0	0	0	0	0
15 Decrease in initial (subscribed) capital (other than arising from the pre bankruptcy settlement procedure or from the reinvestment of profit)	42	0	0	0	0	0		0 0	0	0	0	0		0 0	0	0	0	0	0
16 Decrease in initial (subscribed) capital arising from the pre-bankruptcy settlement procedure	43	0	0	0	0	0		0 0	0	0	0	0		0 0	0	0	0	0	0
17 Decrease in initial (subscribed) capital arising from the reinvestment of profit	44	0	0	0	0	0		0 0	0	0	0	0		0 0	0	0	0	0	0
18 Redemption of treasury shares/holdings	45	0	0	0	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 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	0 -109.162.418	0 0	0 -109.162.418	0 0	0 -109.162.418
21 Other distributions and payments to members/shareholders 22 Carryforward per annual plane	48	0	0	0	-2.391.610	-2.391.610		0 0	0	0	0	0		0 0	4.405.139	0	4.405.139	0	4.405.139
23 Increase in reserves arising from the pre-bankruptcy settlement procedure	49 50	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	94.539.989 0	-94.539.989 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	36.511.836	12.421.930		0 -396.587	0	0	0	0		0 0	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 FOR THE CURRENT PERIOD, NET OF TAX (ADP 33 to 41)	52	0	0	0	0	0		0 -115.256	0	0	0	0		0 0	0	0	-115.256	0	-115.256
II COMPREHENSIVE INCOME OR LOSS FOR THE CURRENT PERIOD (ADP 32 do 52)	53	0	0	0	0	0		0 -115.256	0	0	0	0		0 0	0	177.348.149	177.232.893	0	177.232.893
III TRANSACTIONS WITH OWNERS IN THE CURRENT PERIOD RECOGNISED DIRECTLY IN EQUITY (ADP 42 to 50)	54	0	0	0	22.608.390	11.915.730		0 0	0	0	0	0		0 0	-35.217.290	-94.539.989	-119.064.619	0	-119.064.619

NOTES TO FINANCIAL STATEMENTS - TFI

administration

(drawn up for quarterly reporting periods) Name of the issuer: ERICSSON NIKOLA TESLA D.D.

Personal identification number (OIB): 84214771175 Reporting period: Q4 2021

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)

2. the total amount of any financial commitments, guarantees or contingencies that are not included in the balance sheet, and an indication of the nature and form of any valuable security which has been provided; any commitments concerning pensions of the undertaking within the group or company linked by virtue of participating interest shall be disclosed separately

3. the amount and nature of individual items of income or expenditure which are of exceptional size or incidence

4. 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 9. 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 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 15. the place where copies of the consolidated financial statements referred to in points 13 and 14 may be obtained, provided that they are

available 16. the nature and business purpose of the undertaking's arrangements that are not included in the balance sheet and the financial impact on the undertaking of those arrangements, provided that the risks or benefits arising from such arrangements are material and in so far as the disclosure of such risks or benefits is necessary for the purposes of assessing the financial position of the undertaking 17. the nature and the financial effect of material events arising after the balance sheet date which are not reflected in the profit and loss account or balance sheet

a) 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

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

Segment reporting

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

d) The issuer does not have sesonal bussines activities. e)

	Networks			Digital Services		Managed Services		Other		Unallocated	Total
											31.12.2021 31.12.2020 31.12.2021 31.12.2020 31.12.2021 31.12.2020 31.12.2021 31.12.2020 31.12.2021 31.12.2020 31.12.2021 31.12.2020
	'000 kn	'000 kn	'000 kn	'000 kn	'000 kn	'000 kn	'000 kn	'000 kn	'000 kn	'000 kn	'000 kn	'000 kn
Segment sales revenue	957.335	980.436	582.007	464.834	658.841	569.604	5.714	8.079	0		0 2.203.897 2.022.953
Operating profit	99.615	85.152	61.774	40.818	74.872	21.825	453	303	-50.290	-43.707	186.424	104.391
Transactions with related parties:			31.12.2021 31.12.2020
			HRK 000 HRK 000
Sales		900.018	858.444
Purchases		297.199	314.739
Balances with related parties
			31.12.2021 31.12.2020 HRK 000 HRK 000
Receivable		76.808	89.002
Payable		12.628	10.937
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 3363 (Q1-Q4 2020: 3216). 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. Movement in deferred tax balances during reporting period were as
folows:
			HRK 000
	As at 1 January 2020		16.200
	Tax credited to the Income		6.265
	statement Tax charged to the Income
	statement		-12.924
	As at 31 December 2020		9.541
	As at 1 January 2021		9.541
	Tax credited to the Income		7.202
	statement
	Tax charged to the Income statement		-1.137
	As at 31 December 2021		15.606
9.
The Group has no participating interest. 10.
There were no shares subscribed during the financial year within the limits of the authorised capital.
11. The Group has no participation certificates, convertible debentures, warrants, options or similar securities or rights.
12.
The Group has no shares in companies having unlimited liability.
13. and 14. The company Telefonaktiebolaget LM Ericsson (Sweden, Torshamnsgatan 21, SE-164 83 Stockholm) prepares the consolidated financial statements for
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
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.