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: [email protected] E-mail: [email protected] E-mail: [email protected]

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. Statement of comprehensive income for the period ended 30 September 2024

	2024	2023
	EUR '000	EUR '000
Sales revenue	163.704	158.509
Cost of sales	-141.378	-135.884
Gross profit	__ 22.325	__ 22.625
Selling expenses	-3.878	-3.904
Administrative expenses	-4.572	-3.722
Other operating income	11.622	4.996
Impairment loss on financial assets	-	-2
Operating profit	__ 25.497	__ 19.994
Finance income	__ 1.195	__ 443
Finance expense	-657	-135
Finance income/(expense), net	__ 538	__ 307
Profit before tax	__ 26.035	__ 20.301
Income tax	-6.855	-3.654
Profit for the year	__ 19.180	__ 16.647
Other comprehensive income	__ -	__ -
Total comprehensive income for the year	__ 19.180	__ 16.647
Earnings per share (EUR)	__ 14,47	__ 12,59

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

	2024	2023
	EUR '000	EUR '000
ASSETS
Non-current assets
Property, plant and equipment	13.492	14.352
Right of use assets	14.337	14.818
Intangible assets	933	384
Investments in subsidiaries	4	4
Loans and receivables	1.605	2.587

Deferred tax assets	2.322	2.322
	__	__
Total non-current assets	32.693 __	34.467 __

Current assets
Inventories	16.531	9.781
Trade receivables	16.629	17.896
Receivables from related parties	33.137	37.893
Other receivables	1.611	1.180
Financial assets at fair value through profit or loss	4.344	4.235
Prepayments	1.920	2.238
Cash and cash equivalents	40.815	55.568
Total current assets	__ 114.987	__ 128.791
TOTAL ASSETS	__ 147.680	__ 163.258
	__	__
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	37.697
	__	38.711 __
Total equity	59.811	60.516
Non-current liabilities	__	__
Borrowings	114
		114
Lease liabilities	12.764	13.126
Other non-curent liabilities	6	12
Employee benefits	1.031 __	934 __
Total non-current liabilities	13.915	14.186
Current liabilities	__	__
Payables to related parties	10.278	13.907
Borrowings	-	467
Trade and other payables
	23.332	29.560
Income tax payable	1.858	690
Provisions	1.044	1.558
Accrued charges and deferred revenue	16.595	13.749
Contract liabilities	18.822	26.768
Lease liabilities	2.025	1.857
Total current liabilities	__ 73.954	__ 88.556
Total liabilities	__ 87.869	__ 102.742
TOTAL EQUITY AND LIABILITIES	__ 147.680	__ 163.258
	__	__

Ericsson Nikola Tesla d.d. Statement of cash flows

for the period ended 30 September 2024

	2024	2023
	EUR '000	EUR '000
Cash flows from operating activities
Profit before tax	26.035	20.301
	_	_
Adjustments for:
Depreciation and amortisation	3.856	3.196
Impairment losses and reversals	57	41
Gain on sale of property, plant and equipment	-41	-
Net loss/(gain) on remeasurement of financial assets	-109	-64
Amortisation of discount	-	-8
Interest income	-1.083	-371
Dividend income	-7.001	-49
Interest expense	654	102
Foreign exchange (gain)/loss, net	-43	-47
Share-based payments	252	452
	_	_
Changes in working capital
In receivables	8.673	-13.116
In inventories	-6.750	-14.719
In provisions	-418	-304
In payables	-16.056	-7.532

	_	_
Cash generated from operations	8.027 _	-12.119 _
Interest paid	-650	-102
Income taxes paid	-5.629	-904
	_	_
Net cash from operating activities	1.748	-13.125
	_	_
Cash flows from investing activities
Proceeds from loans given	-	1.000
Interest received	1.036	445
Dividends received	7.001	49
Proceeds from sale of property, plant and equipment	19	3
Purchases of property, plant and equipment, and intangible assets	-2.002	-939
Deposits given to financial institutions - net	-	261
Net cash (used in)/from investing activities	_ 6.055	_ 820
	_	_

Cash flows from financing activities
Repayment of borrowings	-936	-1.811
Purchase of treasury shares	-258	-110
Dividends paid	-19.888	-7.927
Payment of lease liabilities	-1.466	-918
	_	_
Net cash used in financing activities	-22.547	-10.766
Effects of exchange rate changes on cash and cash equivalents	_ -8	_ 20
	_	_
Net increase/(decrease) in cash and cash equivalents	-14.752	-23.051
Cash and cash equivalents at the beginning of the year	55.568	60.679
	_	_
Cash and cash equivalents at the end of the year	40.815 _	37.628 _

Ericsson Nikola Tesla d.d. Statement of changes in equity for the period ended 30 September 2024

	Share capital	Treasury shares	Legal and other reserves	Reserve for treasury shares	Retained earnings	Total
	EUR '000	EUR '000	EUR '000	EUR '000	EUR '000	EUR '000
As at 1 January 2023	17.674	-2.268	884	5.353	27.537	49.180
Changes in equity for the period:
Total comprehensive income	-	-	-	-	18.841	18.841
Dividend distribution	__ -	__ -	__ -	__ -	__ -7.927	__ -7.927
Purchase of treasury shares	-	-184	-	-	-	-184
Shares granted	-	1.196	-	-1.196	-	-
Transfer	-	-	346	-	-346	-
Share-based payments	-	-	-	-	606	606
Total contributions by and distributions to owners of the parent recognized directly in equity	__ -	__ 1.012	__ 346	__ -1.196	__ -7.667	__ -7.505
As at 31 December 2023	__ 17.674	__ -1.256	__ 1.230	__ 4.157	__ 38.711	__ 60.516
As at 1 January 2024	17.674	-1.256	1.230	4.157	38.711	60.516
Changes in equity for the period:
Total comprehensive income	-	-	-	-	19.180	19.180
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	__ 37.698	__ 59.811

Annex 1
		ISSUER'S GENERAL DATA
Reporting period:		1/1/2024	to	9/30/2024
Year:		2024
Quarter:		3.

		Quarterly financial statements
egistration number (MB):	03272699		Issuer's home Member State code:	HR
Entity's registration number (MBS):	0800002028
Personal identification number (OIB):	84214771175		LEI:	5299001W91BFWSUOVD63
Institution code:	233
	Name of the issuer: ERICSSON NIKOLA TESLA D.D. ZAGREB
Postcode and town:	10000		Zagreb
treet and house number: Krapinska 45
	E-mail address: [email protected]
	Web address: www.ericsson.hr
Number of employees (end of the reporting	2766
Consolidated report:	KN	(KN-not consolidated/KD-consolidated)		KN	KD
Audited:	RN	(RN-not audited/RD-audited)		RN	RD
	Names of subsidiaries (according to IFRS):		Registered office:		MB:






					Yes 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: [email protected]
	Audit firm: KPMG Croatia d.o.o.
	(name of the audit firm)
	Certified auditor: Domagoj Hrkać (name and surname)

BALANCE SHEET balance as at 30.09.2024

Submitter: ERICSSON NIKOLA TESLA D.D.		Last day of the	in EUR At the reporting date
Item	ADP code	preceding business year	of the current period
1	2	3	4
A) RECEIVABLES FOR SUBSCRIBED CAPITAL UNPAID	001	0	0
B) FIXED ASSETS (ADP 003+010+020+031+036)	002	34,466,947	32,693,574
I INTANGIBLE ASSETS (ADP 004 to 009) 1 Research and development 2 Concessions, patents, licences, trademarks, software and other	003 004	384,414 0	932,797 0
rights	005	37,674	370,993
3 Goodwill	006	0	0
4 Advances for the purchase of intangible assets	007	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	29,169,292	27,829,238
1 Land	011	2,071,185	2,071,185
2 Buildings	012	20,205,668	18,831,755
3 Plant and equipment	013	4,901,302	4,484,199
4 Tools, working inventory and transportation assets	014	1,909,472	2,189,222
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	242,303
8 Other tangible assets	018	2,955	10,574
9 Investment property	019	0	0
III FIXED FINANCIAL ASSETS (ADP 021 to 030)	020	1,546,428	856,687
1 Investments in holdings (shares) of undertakings within the group	021	4,341	4,341
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	024	0	0
5 Investment in other securities of companies linked by virtue of	025	0	0
participating interests 6 Loans, deposits etc. to companies linked by virtue of participating	026	0	0
interests 7 Investments in securities	027	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	032	0	0
2 Receivables from companies linked by virtue of participating	033	0	0
interests 3 Customer receivables	034	936,670	648,772
4 Other receivables	035	108,269	104,206
V DEFERRED TAX ASSETS	036	2,321,874	2,321,874
C) CURRENT ASSETS (ADP 038+046+053+063)	037	126,553,313	113,066,638
I INVENTORIES (ADP 039 to 045)	038	9,780,753	16,530,715
1 Raw materials and consumables	039	665,760	2,064,253
2 Work in progress	040	9,114,993	14,466,462
3 Finished goods	041	0	0
4 Merchandise	042	0	0
5 Advances for inventories	043	0	0
6 Fixed assets held for sale	044	0	0
7 Biological assets	045	0	0
II RECEIVABLES (ADP 047 to 052)	046	56,969,809	50,686,934
1 Receivables from undertakings within the group	047	740,314	148,952
2 Receivables from companies linked by virtue of participating interests	048	37,152,486	32,988,176
3 Customer receivables	049	17,897,062	16,628,960
4 Receivables from employees and members of the undertaking	050	0	0
5 Receivables from government and other institutions	051	0	0
6 Other receivables	052	1,179,947	920,846
III CURRENT FINANCIAL ASSETS (ADP 054 to 062)	053	4,234,974	5,033,694
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 6 Loans, deposits etc. to companies linked by virtue of participating	058	0	0
interests	059	0	0
7 Investments in securities	060	4,234,974	4,343,535
8 Loans, deposits, etc. given	061	0	690,159
9 Other financial assets	062	0	0
IV CASH AT BANK AND IN HAND	063	55,567,777	40,815,295
D ) PREPAID EXPENSES AND ACCRUED INCOME	064	2,237,975	1,920,259
E) TOTAL ASSETS (ADP 001+002+037+064)	065	163,258,235	147,680,471
OFF-BALANCE SHEET ITEMS	066	0	0
LIABILITIES A) CAPITAL AND RESERVES (ADP 068 to	067	60,516,167	59,810,621
070+076+077+083+086+089) 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	4,131,224	4,439,564
1 Legal reserves	071	1,230,444	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	19,870,199	18,517,406
1 Retained profit	084	19,870,199	18,517,406
2 Loss brought forward	085	0	0
VII PROFIT OR LOSS FOR THE BUSINESS YEAR (ADP 087-088)	086	18,840,714	19,179,621
1 Profit for the business year	087	18,840,714	19,179,621
2 Loss for the business year	088	0	0
VIII MINORITY (NON-CONTROLLING) INTEREST	089	0	0
B) PROVISIONS (ADP 091 to 096)	090	933,733	1,030,937
1 Provisions for pensions, termination benefits and similar obligations	091	933,733	1,030,937
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	13,252,005	12,884,602
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	101	0	0
participating interests 5 Liabilities for loans, deposits etc.	102	0	0
6 Liabilities to banks and other financial institutions	103	13,239,601	12,878,250
7 Liabilities for advance payments	104	0	0
8 Liabilities to suppliers 9 Liabilities for securities 10 Other long-term liabilities	105 106	0 0	0 0
11 Deferred tax liability D) SHORT-TERM LIABILITIES (ADP 110 to 123)	107 108	12,404 0 62,247,722	6,352 0 43,112,219
1 Liabilities to undertakings within the group	109 110	495,476	273,665
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	13,411,818	10,004,297
4 Liabilities for loans, deposits etc. of companies linked by virtue of participating interests	113	0	0
5 Liabilities for loans, deposits etc.	114	0	0
6 Liabilities to banks and other financial institutions	115	2,324,908	2,024,887
7 Liabilities for advance payments	116	14,207,996	4,575,801
8 Liabilities to suppliers	117	6,249,148	8,081,100
9 Liabilities for securities	118	0	0
10 Liabilities to employees	119	19,677,751	11,655,964
11 Taxes, contributions and similar liabilities	120	4,322,363	5,453,001
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	1,558,262	1,043,504
E) ACCRUALS AND DEFERRED INCOME	124	26,308,608	30,842,092
F) TOTAL – LIABILITIES (ADP 067+090+097+109+124)	125	163,258,235	147,680,471
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	3 163,505,481	4 52,244,283	5 175,325,388	6 66,503,400
1 Income from sales with undertakings within the group 2 Income from sales (outside group)	002 003	418,696 158,090,353	112,980 49,613,325	573,703 163,129,800	149,126 57,697,142
3 Income from the use of own products, goods and services 4 Other operating income with undertakings within the group	004 005	0 295,890	0 132,400	0 7,142,860	0 7,047,937
5 Other operating income (outside the group) II OPERATING EXPENSES (ADP 08+009+013+017+018+019+022+029)	006 007	4,700,542 143,511,772	2,385,578 45,819,919	4,479,025 149,828,226	1,609,195 54,505,627
1 Changes in inventories of work in progress and finished goods	008	-15,666,559	-6,259,583	-5,352,013	278,279
2 Material costs (ADP 010 to 012) a) Costs of raw materials and consumables	009 010	64,926,412 34,123,983	21,472,106 10,773,540	56,405,279 38,348,297	21,576,052 13,803,791
b) Costs of goods sold c) Other external costs	011 012	0 30,802,429	0 10,698,566	0 18,056,982	0 7,772,261
3 Staff costs (ADP 014 to 016) a) Net salaries and wages	013 014	84,616,987 51,159,130	27,554,998 16,465,436	88,254,693 53,892,653	29,028,768 17,569,360
b) Tax and contributions from salary costs c) Contributions on salaries	015 016	23,923,218 9,534,639	7,889,869 3,199,693	24,175,435 10,186,605	7,988,065 3,471,343
4 Depreciation 5 Other costs	017	3,195,861	989,507	3,856,127	1,252,662
6 Value adjustments (ADP 020+021)	018 019	5,808,632 0	1,776,320 -2,238	6,417,059 0	2,200,602 0
a) fixed assets other than financial assets b) current assets other than financial assets	020 021	0 0	0 -2,238	0 0	0 0
7 Provisions (ADP 023 to 028) a) Provisions for pensions, termination benefits and similar obligations	022 023	628,201 609,939	286,571 278,796	247,081 310,940	169,264 179,777
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 18,262	0 7,775	0 46,499	0 24,406
f) Other provisions 8 Other operating expenses	028 029	0 2,238	0 2,238	-110,358 0	-34,919 0
III FINANCIAL INCOME (ADP 031 to 040) 1 Income from investments in holdings (shares) of undertakings within	030	444,414	239,771	1,194,799	326,873
the group 2 Income from investments in holdings (shares) of companies linked by	031	0	0	0	0
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	20,442	0	0	0
5 Exchange rate differences and other financial income from operations with undertakings within the group	035	1,808	0	0	0
6 Income from other long-term financial investments and loans 7 Other interest income	036 037	0 350,181	0 206,590	0 1,082,586	0 289,654
8 Exchange rate differences and other financial income 9 Unrealised gains (income) from financial assets	038 039	0 0	0 0	0 0	-9,667 0
10 Other financial income	040	71,983	33,181	112,213	46,886
IV FINANCIAL EXPENSES (ADP 042 to 048) 1 Interest expenses and similar expenses with undertakings within the	041 042	137,281 41	61,621 7	656,972 0	106,120 0
group 2 Exchange rate differences and other expenses from operations with	043	0	0	0	0
undertakings within the group 3 Interest expenses and similar expenses	044	101,500	37,812	653,753	102,901
4 Exchange rate differences and other expenses 5 Unrealised losses (expenses) from financial assets	045 046	35,740 0	23,802 0	3,219 0	3,219 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	0	0	0	0
PARTICIPATING INTEREST VIII SHARE IN LOSS OF JOINT VENTURES	051 052	0 0	0 0	0 0	0 0
IX TOTAL INCOME (ADP 001+030+049 +050) X TOTAL EXPENDITURE (ADP 007+041+051 + 052)	053	163,949,895	52,484,054	176,520,187	66,830,273
XI PRE-TAX PROFIT OR LOSS (ADP 053-054)	054 055	143,649,053 20,300,842	45,881,540 6,602,514	150,485,198 26,034,989	54,611,747 12,218,526
1 Pre-tax profit (ADP 053-054) 2 Pre-tax loss (ADP 054-053)	056 057	20,300,842 0	6,602,514 0	26,034,989 0	12,218,526 0
XII INCOME TAX XIII PROFIT OR LOSS FOR THE PERIOD (ADP 055-059)	058 059	3,654,151 16,646,691	1,188,452 5,414,062	6,855,368 19,179,621	939,335 11,279,191
1 Profit for the period (ADP 055-059) 2 Loss for the period (ADP 059-055)	060 061	16,646,691 0	5,414,062 0	19,179,621 0	11,279,191 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)	073	0	0	0	0
2 Loss for the period (ADP 071-068) 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	16,646,691	5,414,062	19,179,621	11,279,191
(ADP 80+ 87)	079	0	0	0	0
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	083	0	0	0	0
4 Actuarial gains/losses on the defined benefit obligation 5 Other items that will not be reclassified	084 085	0 0	0 0	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	0	0	0	0
1 Exchange rate differences from translation of foreign operations	088	0	0	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	090	0	0	0	0
foreign operation	091	0	0	0	0
5 Share in other comprehensive income/loss of companies linked by virtue of participating interests	092	0	0	0	0
6 Changes in fair value of the time value of option 7 Changes in fair value of forward elements of forward contracts	093 094	0 0	0 0	0 0	0 0
8 Other items that may be reclassified to profit or loss	095	0	0	0	0
9 Income tax relating to items that may be reclassified to profit or loss	096	0	0	0	0
V NET OTHER COMPREHENSIVE INCOME OR LOSS (ADP 080+087- 086 - 096)	097	0	0	0	0
VI COMPREHENSIVE INCOME OR LOSS FOR THE PERIOD (ADP 078+097)	098	16,646,691	5,414,062	19,179,621	11,279,191
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) 1 Attributable to owners of the parent	099 100	16,646,691 16,646,691	5,414,062 5,414,062	19,179,621 19,179,621	11,279,191 11,279,191

101 0 0 0 0

2 Attributable to minority (non-controlling) interest

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

			in EUR
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	001	20,300,842	26,034,989
2 Adjustments (ADP 003 to 010): a) Depreciation	002	3,251,117 3,195,861	-3,457,495 3,856,127
b) Gains and losses from sale and value adjustment of fixed tangible and intangible assets	003 004	-436	-40,871
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	-419,610	-8,083,461
e) Interest expenses	007	101,786	653,753
f) Provisions	008	0	0
g) Exchange rate differences (unrealised)	009	-47,304	-42,924
h) Other adjustments for non-cash transactions and unrealised gains and losses	010	485,152	308,441
I Cash flow increase or decrease before changes in working capital (ADP 001+002)	011	23,551,959	22,577,494
3 Changes in the working capital (ADP 013 to 016)	012	-35,670,972	-14,550,686
a) Increase or decrease in short-term liabilities	013	-7,532,499	8,672,822
b) Increase or decrease in short-term receivables	014	-13,115,922	-6,749,963
c) Increase or decrease in inventories	015	-14,718,743	-417,555
d) Other increase or decrease in working capital	016	-303,808	-16,055,990
II Cash from operations (ADP 011+012)	017	-12,119,013	8,026,808
4 Interest paid	018	-101,685	-649,656
5 Income tax paid A) NET CASH FLOW FROM OPERATING ACTIVITIES (ADP 017 to 019)	019 020	-904,462 -13,125,160	-5,628,739 1,748,413

Cash flow from investment activities 1 Cash receipts from sales of fixed tangible and intangible assets	021	3,064	18,883
2 Cash receipts from sales of financial instruments	022	0	0
3 Interest received	023	445,449	1,036,395
4 Dividends received	024	48,987	7,000,874
5 Cash receipts from repayment of loans and deposits	025	1,261,446	0
6 Other cash receipts from investment activities	026	0	0
III Total cash receipts from investment activities (ADP 021 to 026)	027	1,758,946	8,056,152
1 Cash payments for the purchase of fixed tangible and intangible assets	028	-938,895	-2,001,604
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	031	0	0
5 Other cash payments from investment activities IV Total cash payments from investment activities (ADP 028 to 032)	032 033	0 -938,895	0 -2,001,604
B) NET CASH FLOW FROM INVESTMENT ACTIVITIES (ADP 027 +033)	034	820,051	6,054,548
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	-1,811,092	-935,571
2 Cash payments for dividends	041	-7,927,347	-19,887,975
3 Cash payments for finance lease	042	-917,685	-1,465,983
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	-10,765,624	-22,547,293
C) NET CASH FLOW FROM FINANCING ACTIVITIES (ADP 039 +045)	046	-10,765,624	-22,547,293
1 Unrealised exchange rate differences in respect of cash and cash equivalents	047	19,563	-8,150
D) NET INCREASE OR DECREASE IN CASH FLOWS (ADP 020+034+046+047)	048	-23,051,170	-14,752,482
E) CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD	049	60,678,904	55,567,777
F) CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD(ADP 048+049)	050	37,627,734	40,815,295

STATEMENT OF CHANGES IN EQUITY for the period from 1/1/2024 to	9/30/2024																	in EUR
										Attributable to owners of the parent
Item	ADP					Treasury shares				Fair value of financial assets		Hedge of a net		Exchange rate	Retained profit /		Total attributable to	Minority (non	Total capital and
	code	Initial (subscribed) capital		Capital reserves Legal reserves	Reserves for treasury shares	and holdings (deductible item)		Statutory reserves Other reserves	Revaluation reserves	through other comprehensive	Cash flow hedge - effective portion	investment in a foreign operation -	Other fair value reserves	differences from translation of	loss brought forward	Profit/loss for the business year	owners of the parent	controlling) interest	reserves
										income (available for sale)		effective portion		foreign operations
1	2	3	4	5	6	7	8	9	10	11	12	13	14	15	16	17	18 (3 to 6 - 7 + 8 to 17)	19	20 (18+19)
Previous period 1 Balance on the first day of the previous business year	01	17,674,033	0	883,702	5,352,791	2,268,251	0	0	0		0	0 0	0	0	27,537,038	0	49,179,313	0	49,179,313
2 Changes in accounting policies	02	0	0	0	0	0	0	0	0		0	0 0	0	0	0	0	0	0	0
3 Correction of errors 4 Balance on the first day of the previous business year (restated) (ADP 01 to	03	0	0	0	0	0	0	0	0		0	0 0	0	0	0	0	0	0	0
03)	04	17,674,033	0	883,702	5,352,791	2,268,251	0	0	0		0	0 0	0	0	27,537,038	0	49,179,313	0	49,179,313
5 Profit/loss of the period 6 Exchange rate differences from translation of foreign operations	05 06	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0		0 0	0 0 0 0	0 0	0 0	0 0	18,840,714 0	18,840,714 0	0 0	18,840,714 0
7 Changes in revaluation reserves of fixed tangible and intangible assets	07	0	0	0	0	0	0	0	0		0	0 0	0	0	0	0	0	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 10 Profit or loss arising from effective hedge of a net investment in a foreign	09	0	0	0	0	0	0	0	0		0	0 0	0	0	0	0	0	0	0
operation	10	0	0	0	0	0	0	0	0		0	0 0	0	0	0	0	0	0	0
11 Share in other comprehensive income/loss of companies linked by virtue of participating interests	11	0	0	0	0	0	0	0	0		0	0 0	0	0	0	0	0	0	0
12 Actuarial gains/losses on the defined benefit obligation 13 Other changes in equity unrelated to owners	12	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	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 bankruptcy settlement procedure or from the reinvestment of profit)	15	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	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	183,760	0	0	0		0	0 0	0	0	0	0	-183,760	0	-183,760
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 -7,927,194	0 0	0 -7,927,194	0 0	0 -7,927,194
21 Other distributions and payments to members/shareholders 22 Transfer to reserves according to the annual schedule	21	-3	0	2	-1,196,128	-1,196,128	0	0	0		0	0 0	0	0	607,095	0	607,094	0	607,094
23 Increase in reserves arising from the pre-bankruptcy settlement procedure	22 23	0 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
24 Balance on the last day of the previous business year reporting period (ADP 04 to 23)	24	17,674,030	0	1,230,444	4,156,663	1,255,883	0	0	0		0	0 0	0	0	19,870,199	18,840,714	60,516,167	0	60,516,167
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	0	0	0	0	0	0
II COMPREHENSIVE INCOME OR LOSS FOR THE PREVIOUS PERIOD (ADP
05+25)	26	0	0	0	0	0	0	0	0		0	0 0	0	0	0	18,840,714	18,840,714	0	18,840,714
III TRANSACTIONS WITH OWNERS IN THE PREVIOUS PERIOD RECOGNISED DIRECTLY IN EQUITY (ADP 15 to 23)	27	-3	0	346,742	-1,196,128	-1,012,368	0	0	0		0	0 0	0	0	-7,666,839	0	-7,503,860	0	-7,503,860
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 0	1,230,444 0	4,156,663 0	1,255,883 0	0 0	0 0	0 0		0 0	0 0 0 0	0 0	0 0	38,710,913 0	0 0	60,516,167 0	0 0	60,516,167 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	1,230,444	4,156,663	1,255,883	0	0	0		0	0 0	0	0	38,710,913	0	60,516,167	0	60,516,167
5 Profit/loss of the period 6 Exchange rate differences from translation of foreign operations	32	0	0	0	0	0	0	0	0		0	0 0	0	0	0	19,179,621	19,179,621	0	19,179,621
7 Changes in revaluation reserves of fixed tangible and intangible assets	33	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	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	39	0	0	0	0	0	0	0	0		0	0 0	0	0	0	0	0	0	0
13 Other changes in equity unrelated to owners 14 Tax on transactions recognised directly in equity	40 41	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0		0 0	0 0 0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0
15 Decrease in initial (subscribed) capital (other than arising from the pre bankruptcy settlement procedure or from the reinvestment of profit)	42	0	0	0	0	0	0	0	0		0	0 0	0	0	0	0	0	0	0
16 Decrease in initial (subscribed) capital arising from the pre-bankruptcy	43	0	0	0	0	0	0	0	0		0	0 0	0	0	0	0	0	0	0
settlement procedure 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	46	0	0	0	0	0	0	0	0		0	0 0	0	0	0	0	0	0	0
20 Payment of share in profit/dividend 21 Other distributions and payments to members/shareholders	47 48	0 0	0 0	0 0	0 -705,503	0 -705,503	0 0	0 0	0 0		0 0	0 0 0 0	0 0	0 0	-19,879,530 252,127	0 0	-19,879,530 252,127	0 0	-19,879,530 252,127
22 Carryforward per annual plane 23 Increase in reserves arising from the pre-bankruptcy settlement procedure	49 50	0 0	0 0	566,104 0	0 0	0 0	0 0	0 0	0 0		0 0	0 0 0 0	0 0	0 0	-566,104 0	0 0	0 0	0 0	0 0
24 Balance on the last day of the current business year reporting period (ADP	51	17,674,030	0	1,796,548	3,451,160	808,144	0	0	0		0	0 0	0	0	18,517,406	19,179,621	59,810,621	0	59,810,621
31 to 50) APPENDIX TO THE STATEMENT OF CHANGES IN EQUITY (to be filled in by undertakings that draw up financial statements in accordance with the IFRS)
I OTHER COMPREHENSIVE INCOME FOR THE CURRENT PERIOD, NET OF	52	0	0	0	0	0	0	0	0		0	0 0	0	0	0	0	0	0	0
TAX (ADP 33 to 41)
II COMPREHENSIVE INCOME OR LOSS FOR THE CURRENT PERIOD (ADP 32 do 52)	53	0	0	0	0	0	0	0	0		0	0 0	0	0	0	19,179,621	19,179,621	0	19,179,621
III TRANSACTIONS WITH OWNERS IN THE CURRENT PERIOD RECOGNISED DIRECTLY IN EQUITY (ADP 42 to 50)	54	0	0	566,104	-705,503	-447,739	0	0	0		0	0 0	0	0	-20,193,507	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) b) information on the access to the latest annual financial statements, for the purpose of understanding information published in the notes to financial statements drawn up for the semi-
annual reporting period c) a statement explaining that the same accounting policies are applied while drawing up financial statements for the semi-annual reporting period as in the latest annual financial statements

or, in the case where the accounting policies have changed, a description of the nature and effect of the changes (item 16.A (a) IAS 34 - Interim financial reporting) d) a description of the financial performance in the case of the issuer whose business is seasonal (items 37 and 38 IAS 34 - Interim financial reporting) e) other comments prescribed by IAS 34 - Interim financial reporting

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

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

7. 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

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
the name and registered office of each of the undertakings in which the undertaking, either itself or through a person acting in their own name but on the undertaking's behalf, holds a participating interest, showing the proportion of the capital held, the amount of capital and reserves, and the profit or loss for the latest financial year of the undertaking concerned for which financial statements have been adopted; the information concerning capital and reserves and the profit or loss may be omitted where the undertaking concerned does not publish its

balance sheet and is not controlled by another undertaking 10. the number and the nominal value or, in the absence of a nominal value, the accounting par value of the shares subscribed during the financial year within the limits of the authorised

capital 11. the existence of any participation certificates, convertible debentures, warrants, options or similar securities or rights, with an indication of their number and the rights they confer

1. the name, registered office and legal form of each of the undertakings of which the undertaking is a member having unlimited liability
1. the name and registered office of the undertaking which draws up the consolidated financial statements of the largest group of undertakings of which the undertaking forms part as a controlled group member
1. the name and registered office of the undertaking which draws up the consolidated financial statements of the smallest group of undertakings of which the undertaking forms part as a controlled group member and which is also included in the group of undertakings referred to in point 13
1. the place where copies of the consolidated financial statements referred to in points 13 and 14 may be obtained, provided that they are available
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

Segment report

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

b) have been consistently applied to all the periods presented.

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

www.ericsson.hr/en/reports c)

The interim financial statements for the reporting period are prepared applying the same accounting policies as in the latest annual financial statements presented in the Annual Report.

d) The issuer does not have sesonal bussines activities.

		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	103,801	99,236	58,027	53,110	1,480	5,786	396	377	0	0	163,704	158,509
Operating profit	20,429	16,231	9,497	7,199	102	246	41	40	-4,572	-3,722	25,497	19,994
Transactions with related parties:			30.09.2024 30.09.2023 EUR 000 EUR 000
Sales		104,092	107,279
Purchases		27,147	30,891
Balances with related parties
			30.09.2024 12/31/2023 EUR 000 EUR 000
Receivable		33,137	37,893
Payable		10,278	13,907
1. Issuer's name, registered office (address), legal form, country of establishment, entity's registration number are disclosed in the sheet General data of this document. 2. Accounting policies have not been changed in relation to previous reporting period. 3. Financial commitments in term of guarantees that are not included in the balance sheet are not material and Management Board believes that possibility of any outflow is remote. The Company has no commitments concerning pensions that are in scope of IAS 19. 4.

Networks Digital Services Managed Services Other Unallocated Total

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

The Company has no debt falling due after more than five years.
At the balance sheet date, the Company does not have debts covered by valuable securities/insurance.

The average number of employees during the reporting period is 2772 (Q3 2023: 2739). The Company does not categorise employees. 7.

No cost of salaries was capitalised in the reporting period. 8.

Provision for deferred tax is calculated annualy, at balance sheet date 31 December. There were no movement in deferred tax balances during reporting period.

The Company has no participating interest.
There were no shares subscribed during the financial year within the limits of the authorised capital.
The Company has no participation certificates, convertible debentures, warrants, options or similar securities or rights.
The Company has no shares in companies having unlimited liability.
and 14. The company Telefonaktiebolaget LM Ericsson (Sweden, Torshamnsgatan 21, SE-164 83 Stockholm) prepares the consolidated financial

statements for the larger Group of companies, in which Ericsson Nikola Tesla Group is included as an associate member of Ericsson.

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

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

17.

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

15.

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

Within the category Current assets in Statement of financial position total amount of Other receivables, Income tax receivables is

indicated in TFI-POD form under AOP 051 Receivables from government and other institutions,052 Other receivables, 061 Loans, deposits, etc. given.

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

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

Within the category Current liabilities in Statement of financial position total amount of Trade and other payables and Income tax

payable is indicated in TFI-POD in AOP 117 Liabilities to suppliers,119 Liabilities to employees,120 Taxes, contributions and similar liabilities.

Within the category Current liabilities in Statement of financial position total amount of Accrued charges and deferred revenue and Contract liabilities is indicated in TFI-POD form under AOP 116 Liabilities for advance payments, 124 Accruals and deferred income.

Also, within the category Current liabilities in Statement of financial position total amount of Provisions is indicated in TFI-POD form under AOP 123 Other short-term liabilities.

Additionally, both categories Borrowings and Lease liabilities in Statement of Financial position 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

The amount indicated in AOP 006 Other operating income (outside the group), is indicated in Other operating income and Impairment reversal on financial assets in Statement of Comprehensive income (FS form). expenses.

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