Ericsson Nikola Tesla d.d.

Quarterly Report • Oct 27, 2021

ERICSSON NIKOLA TESLA d.d. Krapinska 45 10000 Zagreb

SECURITY: ERNT (ISIN: HRERNTRA0000) LEI: 5299001W91BFWSUOVD63 HOME MEMBER STATE: Republic of Croatia REGULATED MARKET SEGMENT: Regular market of the Zagreb Stock Exchange

Ericsson Nikola Tesla Group

Management Report on the Company and Ericsson Nikola Tesla Group business performance with comments on the financial results for the first nine months of 2021

Highlights:

• Sales revenue: MHRK 1,533.0
• Gross margin: 11.5%
• Operating profit: MHRK 132.2
• Profit before tax: MHRK 135.4
• Net profit: MHRK 114.7
• Cash flow from operating activities: MHRK 235.3

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

"We have closed another successful quarter, during which we have continued to achieve excellent business results and position ourselves as the market leader in new technologies. The most significant event of the third quarter that will impact on the overall telecom market of the Republic of Croatia, was a public auction of the frequency spectrum for 5G network (700 MHz, 3600 MHz, and 26 GHz), held in August. By allocating 5G spectrum, for the operators in Croatia a new chapter was opened in the implementation of 5G technology, which has the potential to transform our economy. We shall therefore, in cooperation with all the stakeholders of the ecosystem, which includes key operators, industry, public administration and education sector, in the best way possible, try to use 5G innovation potential to create new opportunities and revenues in various sectors. This is the only way in which we can secure sustainability and global competitiveness of our economy, in addition to creating new job opportunities.

Compared with the first nine months of 2020, sales revenue increased by 6.2%, and revenue growth was recorder in all market segments. With the export share of 52.4% in total sales results, the company is highly ranked on the list of Croatia's largest exporters. Gross margin records a significant increase to 11.5% (first nine months of 2020: 8.7%), because of business mix, lower transition and transformation costs, and the effect of operating and cost efficiency programs. As a result of higher gross profit and retaining selling and administrative expenses at the approximately same level year-over-year, the operating profit increased by 73.3% to MHRK 132.2, while net profit increased by 70.9% to MHRK 114.7. A strong cash flow from operating activities was also realized, amounting to

MHRK 235.3, and thus cash and cash equivalents, including the short-term financial assets, at the end of third quarter amounted to MHRK 400.9.

In the domestic market, our partners Hrvatski Telekom and A1 Hrvatska have continued to strongly focus on further 5G network development and the possibilities that 5G network implementation will offer to business sector and private users. The strategic cooperation with A1 Hrvatska on the implementation of 5G radio access network was expanded to the implementation of convergent 5G core solution, which is an important step towards the realization of full 5G user experience. With Hrvatski Telekom, we have continued a successful cooperation on the introduction of 5G technology and the development of fiber access network. Immediately after the allocation of radio-frequency spectrum for 5G, Hrvatski Telekom and A1 Hrvatska launched the full implementation of 5G across Croatia. Our company, as the provider of solutions, equipment, and services for 5G, provided an extensive support to operators in this demanding process. We are proud of the fact that we are recognized and valued as a reliable partner, who can provide the best user experience for the customer, on quality and safe infrastructure.

In ICT for Industry & Society, we have signed new contracts with the Croatian Ministry of Justice and Public Administration, State Geodetic Administration, and the Ministry of the Interior of the Republic of Croatia. We have been intensely working on innovative solutions in e-Health, e-Business, and public safety, thus strengthening our overall business results.

We have also made a step forward in e-Environment (Industry 4.0), which we have recognized as a strategically important segment in regard to new business opportunities, as well as our additional contribution to environmental protection. With the Ministry of Economy and Sustainable Development, and the Croatian Agency for SMEs, Innovations, and Investments, we have signed a contract for the grant from EU Structural and Investment Funds with the aim to implement WaterQ project (digital transformation of water quality monitoring).  The company "Elektroprivreda Hrvatske zajednice Herceg Bosne d.d. Mostar" has chosed our ICT solution that will enable predictive analytics for the purpose of improving environmental protection and sustainable development.

The political and economic situation in certain export markets, such as the Belarussian market, remained unchanged since the last report. Respectively, we have been increasingly monitoring and estimating potential obstacles in business performance, as well as other business risks. We have given special attention also to disruptions in global supply chain and take certain measures to mitigate the negative impact on our contractual obligations on all markets. We expect that delivery issues will continue to represent a risk. Our integrated system of business risk management - Enterprise Risk Management, that has been a part of our management system for many years, and that we are continuously improving, makes it easier for us to perceive and mitigate potential business risks. We believe that, in addition to knowledge and skills, it is precisely our organizational culture – professionalism, respect, perseverance and integrity in doing business –what allows us to achieve good business results, even in challenging times.

During Q3, we have continued a quality cooperation with our major customers in export markets, focusing on timely delivery of contracted business deals, and new business opportunities.

The delivery of services to Ericsson has been continuously growing, and all the activities are ongoing as planned. At the recently held regular semi-annual R&D Management Business Review (OSG) meeting, a high level of satisfaction of internal users/sponsors of our R&D Center was once again confirmed in all categories and all business segments. The maturity and excellence of R&D Center according to technology, operational, collaboration and other criteria determines the business future, retaining of the existing and gaining new business and responsibilities, as well as positioning within the global R&D community. Our goal is to be the first choice of our sponsors for the expansion and taking over new responsibilities in propulsive, highly valued areas, and we can

achieve this through knowledge and innovation, and quality of deliveries. Considering that services to Ericsson, on which the experts from R&D and other experts center work on (Networks, Digital services, including Media and Operations, ICT for Industry & Society, IT&Test Environment Operations), in addition to strategic importance, also account for 40% of the company's total revenue, this R&D Centre's accomplishment is especially important.

We have continued the activities of Ericsson Nikola Tesla Group's digital transformation with the aim to simplify and further automate processes, as well as improve user experience, in order to be an even more efficient and quality partner for our customers.

When we talk about the business trends, it is clear that the impact of COVID-19 pandemic continues to strongly reflect on all spheres of life and work. In operator segment, globally and locally, great efforts and investments in mobile network development continue. State administration bodies, companies and individuals demand better connectivity and service availability at any time and from any location. Therefore, it is necessary to encourage investments in faster introduction of high-capacity infrastructure, such as 5G, with the simultaneous improvement of availability, which will create prerequisites for society's digital transformation.

The challenges caused by the pandemic have once again showed that people are the strength of Ericsson Nikola Tesla Group. In addition to the prevention measures we have been undertaking with the aim to protect our employees' health, such as organizing vaccination, we remain focused on the care of other employee work conditions and benefits. The program PrevENTion, that we initiated with the purpose of a comprehensive approach to employee health, has received a very positive feedback. We continue the program with a series of lectures on healthy lifestyle, exercising workshops, as well as group and individual discussions with the aim to strengthen employee mental health.

The results realized during the first nine months, in addition to strong leadership and the dedication and motivation of our employees, support our belief that the Group's 2021 targets will be achieved. We continue the activities to realize contracted business, with a strong focus on quality, risk management, profitability, and operating cash flow. We have been continuously improving our ethics and compliance program, with the aim to further strengthen the company's culture based on integrity, compliance governance, and fighting corruption.

Furthermore, to stay competitive, we have been investing in strategic areas, development of new solutions and products, as well as competence development, and have continued hiring. In 2021, we hired 347 experts, and I would like to use this opportunity and invite ICT experts who are interested in working on interesting jobs, especially in software development, to join us.

The role of ICT industry has been growing and will continue to grow as a platform that will enable development, connectivity and create new opportunities for industries and individuals. In addition to the recognized Ericsson technology leadership in 5G, innovative solutions and products developed in Ericsson Nikola Tesla and the quality of our experts, which has been additionally verified on numerous projects worldwide, Ericsson Nikola Tesla is, and will remain, an important factor in creating a comprehensive 5G ecosystem. Therefore, our focused strategy with a vision of a world where unlimited connectivity and innovative ICT solutions improve lives, redefine business and create a sustainable future, remains unchanged and gains additional momentum. "

Financial highlights for the Group:

• Sales revenue amounted to MHRK 1,533.0 (first nine months 2020: MHRK 1,443.5), up by 6.2% yearover-year. In total sales revenue, the domestic market accounted for 47.6%, services to Ericsson accounted for 42.2%, while other export markets accounted for 10.2%.

PRESS INFO

October 27, 2021

• Sales in the Networks segment amounted to MHRK 671.5 (first nine months 2020: MHRK 731.8), Digital Services segment amounted to MHRK 407.1 (first nine months 2020: MHRK 317.6), Managed Services segment amounted to MHRK 449.4 (first nine months 2020: MHRK 388.1), and in the segment Emerging Business and Other, MHRK 5.0 (first nine months 2020: MHRK 6.1).
• Gross profit was MHRK 176.8 (first nine months 2020: MHRK 125.1), up by 41.3% 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% (first nine months 2020: 8.7%).
• Selling and administrative expenses was slightly up year-over-year, amounting to MHRK 62.2 (first nine months 2020: MHRK 62.1). The share of selling and administrative expenses in sales revenue was 4.1% (first nine months 2020: 4.3%).
• Operating profit amounted to MHRK 132.2, up by 73.3% year-over-year (first nine months 2020: MHRK 76.2) because of significant increase in gross profit.
• Gain from financial activities amounted to MHRK 3.2 (first nine months 2020: MHRK -1.1) because of positive exchange differences and interest income.
• Profit before tax increased by 80.2% year-over-year to MHRK 135.4 (first nine months 2020: MHRK 75.1).
• Net profit amounted to MHRK 114.7 (first nine months 2020: MHRK 67.2), up by 70.9% year-over-year. Return on Sales (ROS) was 7.5% (first nine months 2020: 4.7%).
• Cash flow from operating activities amounted to MHRK 235.3 (first nine months 2020: MHRK 232.9) because of received advanced payments and excellent cash collection from certain customers.
• Working Capital Efficiency, expressed in WCD, was 8 days (first nine months 2020: 35 days), and excluding services to Ericsson, Working Capital Efficiency was 22 days (first nine months 2020: 71 day). 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 September 30, 2021, amounted to MHRK 400.9 (34.5% 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, received advanced payments on certain contracts and less investment outflows/activities.
• The Group has a solid balance sheet with the total assets of MHRK 1,161.9 as at September 30, 2021, up by 16,9 % 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 and new demands, as well as strong growth of cash in the observed period. Equity ratio was 30.2% (end of 2020: 34.8%).
• With related parties, the transactions were as follows: sales of products and services amounted to MHRK 645,9 (first nine months 2020: MHRK 630.6), while the procurement of products and services amounted to MHRK 203.3 (first nine months 2020: MHRK 225.2).
• As at September 30, 2021, balances outstanding with related parties were as follows: receivables amounted to MHRK 85.6 (end of 2020: MHRK 89.0), and payables MHRK 38.4 (end of 2020: MHRK 10.9).

Business situation in major markets

In the domestic market, sales revenue amounted to MHRK 729.8 (first nine months 2020: MHRK 664,6), up by 9,8 % year-over-year.

In cooperation with Hrvatski Telekom d.d. (HT), we have enabled the commercial use of 5G technology in the existing spectrum significantly before 5G frequencies were allocated. HT has been continuously investing in the leading position when it comes to 5G turning-point in Croatia, and at the auction mentioned, for the investment amount of MHRK 130, HT secured the single largest amount of spectrum in the next 15 years on a national level, thus creating a strategic leverage for its further network development. Already now HT's network, through 5G radio access network and services, whose supplier is Ericsson Nikola Tesla Group, secures coverage for 2 million citizens.

One of HT's main goals is also investing in infrastructure, primarily in the development of fiber access network. Based on 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, Ericsson Nikola Tesla Group has been continuously participating in the rollout of fiber access network, and in the first nine months 2021, the realized amount of FTTH connections was almost double as compared to the previous year, which was also successful.

Ericsson Nikola Tesla Group remains focused on the realization of all agreed 2021 targets and a joint intensive planning of activities in 2022.

With A1 Hrvatska, the tests of radio 5G technology on frequency bands of 700 MHz and 3.5 GHz were successfully completed with excellent results. Following the implemented procedure of frequency spectrum allocation in August, A1 Hrvatska successfully launched 5G service into commercial operation, on new frequencies, as well as on the existing frequency spectrum, by using the Dynamic Spectrum Sharing (DSS) technology. A successful partnership cooperation on the implementation of 5G radio access network was extended also on the implementation of convergent 5G core solution. Owing to this cooperation, a comprehensive system to provide advanced 5G user experience will be implemented, as a response to an increasing demand of end users and business clients of A1 Hrvatska. After implemented, the system will create prerequisites for industrial automation and robotization in real time, assisted and autonomous driving, providing reliable low latency network and network slicing for special purposes. All these are prerequisites for Industry 4.0, and positioning Croatia as globally competitive country. Furthermore, 5G cloud native standalone technology brings additional benefits for the users of A1 Hrvatska, including a simple, and for end user's, unnoticeable migration from 4G towards 5G solution, modernization of the network's existing infrastructure and network layer, and automation and evolution of network towards the new 5G services.

In ICT for Industry & Society, with the Ministry of Justice and Public Administration we have signed a contract for the services of design, development and implementation of the system within the project: "Land Data Management". With the State Geodetic Administration, we have signed a contract for the upgrade of Joint Information System of Land Registry and Cadaster (JIS) with new functionalities within the loan from the World Bank for the project of implementation of an integrated land administration system. With the Ministry of Interior of the Republic of Croatia, we have contracted the maintenance of stationary systems for state border monitoring. We have continued with the new activities on upgrade of Central Healthcare Information System of the Republic of Croatia (CEZIH) regarding the processes of vaccination, as well as the healthcare portal upgrade.

In export markets (excluding services to Ericsson) sales revenue amounted to MHRK 157,0 (first nine months 2020: MHRK 145.8), up by 7,7% year-over-year. In addition to the negative impact of COVID-19 pandemic, the political and economic crisis in certain markets, primarily in Belarus and Bosnia and Herzegovina, additionally aggravates 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 e-Health informatization in Belarus.

The activities continue on the modernization and maintenance of telecommunication networks with the operators HT Eronet (Bosnia and Herzegovina), Crnogorski Telekom (Montenegro) and IPKO (Kosovo). In Belarus, in addition to being cautious and focused on risk reduction, the activities continue with the operator beCloud on projects of LTE network expansion, and with the operator A1 Belarus on the expansion of transmission network.

In ICT for Industry & Society, the most significant activities are on the implementation of Central Software Platform for the Centralized e-Health System of the Republic of Belarus. The project's first phase was accepted (creating project documents with requested software platform specifications), and the activities within the second phase, referring to a detailed specification of platform functionalities, and software solution development, are ongoing. A contract was signed with the Ministry of Internal of Montenegro for the maintenance of 112 calls system.

In Ericsson market, sales revenue amounted to MHRK 646.2 (first nine months 2020: MHRK 633.1), up by 2,1% year-over-year.

Ericsson Nikola Tesla's Research and Development (R&D) Center continued with the realization of strategic business and projects. The regular semiannual review confirmed high level of internal users' satisfaction and showed maturity of the R&D Center, according to technological, operational and collaborative criteria. In business segment Networks, development of significant number of features related to classic and 5G products is ongoing with additional responsibilities within development process. Within the business area Digital Services, activities continue in the area Mobile Switching Center, on the development of the number of SIP features, planned to be released in Q4. In the area Home Location Register new features were delivered and customer support requests were successfully executed. Within Cloud, besides development and product verification, preparation for new responsibilities is ongoing. Centralized User Database delivered features according to plan. In Service Area Networks, Wireline and Legacy, number of customer support activities were successfully executed, and several integration projects are ongoing including new, complex features for specific customers.

The experts from the Center for Services and Solutions for Networks, in addition to the projects for the customers of Ericsson Nikola Tesla Group, are included in the activities of integration and optimization of various technologies for Ericsson customers in the United Kingdom, Germany, Sweden, Switzerland, Ireland, Spain, Denmark, Norway, Belgium, Czech Republic, Lithuania, Greece, Malta, Algeria, Canada, USA, Saudi Arabia, Bahrein, Singapore, Kenya, India, Pakistan, Japan, Indonesia, Malaysia, Taiwan, Vietnam, Hong Kong, Brazil, SAR, etc.

The work has also continued on the development and implementation of software tools for mobile networks management and optimization that 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, 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.

The teams working in IT& Engineering Services, in addition to providing excellent support and are achieving excellent results on test environment management projects and IT operations for Ericsson corporation, also have a key role in transformation processes of Ericsson Nikola Tesla Group, and provide a quality support for a smooth

work from home and remote support to customers.

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

Other information

Ericsson Nikola Tesla major shareholders (as at September 30, 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
Addiko 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	38,965	2.93
PBZ d.d. / The Bank of New York as Custodian	13,608	1.02
PBZ d.d. / custodian client account	11,103	0.83
OTP banka d.d. / OTP Index fund - open-end alternative investment fund with public offering	9,474	0.71
Raiffeisenbank Austria d.d. / Raiffeisen voluntary pension fund	8,094	0.61
Vuleta Ivica	5,318	0.40
PBZ d.d. / /NLB Skladi _Slovenija mešani	3,947	0.30
Other shareholders	423,664	31.81

Share price information in Q3 2021:

Highest (HRK)	Lowest (HRK)	Closing (HRK)	Market cap. (in MHRK)
1,750.00	1,580.00	1,705.00	2,270.5

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 September 30, 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. Statement of comprehensive income

for the period ended 30 September 2021

	2021	2020
	HRK '000	HRK '000
Sales revenue	1.071.903	1.036.775
Cost of sales	-944.595	-926.162
Gross profit	__ 127.309	__ 110.613
Selling expenses	-28.720	-30.939
Administrative expenses	-26.510	-23.569
Other operating income	16.428	13.260
Other operating expenses	-132	-648
Operating profit	__ 88.375	__ 68.718
Finance income	__ 4.519	__ 1.834
Finance expense	-859	-2.197
Finance income/(expense), net	__ 3.660	__ -363
Profit before tax	__ 92.035	__ 68.355
Income tax	-11.648	-7.054
Profit for the year	__ 80.387	__ 61.301
Other comprehensive income	__ -	__ -
Total comprehensive income for the year	__ 80.387	__ 61.301
Earnings per share (HRK)	__ 60,73	__ 46,05

Ericsson Nikola Tesla d.d.

Statement of financial position

as at 30 September 2021

	2021	2020
	HRK '000	HRK '000
ASSETS
Non-current assets
Property, plant and equipment	129.721	148.687
Right of use assets	30.721	37.780
Intangible assets	258	347
Loans and receivables	21.886	38.920
Deferred tax assets	8.397	8.397
	__	__
Total non-current assets	190.984	234.131
	__	__
Current assets
Inventories	81.728	44.179
Trade receivables	139.969	81.353
Receivables from related parties	88.369	97.933
Other receivables	25.122	5.729
Income tax receivable	0	11.651
Financial assets at fair value through profit or loss	33.046	32.936
Prepayments	12.372	32.379
Cash and cash equivalents	269.278	245.833
	__	__
Total current assets	649.885	551.993
	__	__
TOTAL ASSETS	840.869	786.124
	__	__
EQUITY AND LIABILITIES
Equity
Share capital	133.165	133.165
Treasury shares	-3.746	-506
Legal reserves	6.658	6.658
Reserve for treasury shares	38.903	13.903
Retained earnings	102.382	153.873
	__	__
Total equity	277.363	307.093
	__	__
Non-current liabilities	20.255	30.292
Borrowings
Lease liabilities	21.299	26.559
Other non-curent liabilities	320	411
Employee benefits	5.892	7.335
Total non-current liabilities	__ 47.766	__ 64.597
	__	__
Current liabilities
Payables to related parties	29.689	29.758
Borrowings	14.088	14.236
Trade and other payables	139.422	112.735
Income tax payable	4.986	0
Provisions	16.300	13.598
Accrued charges and deferred revenue	100.873	65.300
Contract liabilities	200.812	167.119
Lease liabilities	9.569	11.687
	__	__
Total current liabilities	515.740	414.434
	__	__
Total liabilities	563.505	479.031
	__	__
TOTAL EQUITY AND LIABILITIES	840.869	786.124
	__	__

Ericsson Nikola Tesla d.d.

Statement of cash flows

for the period ended 30 September 2021

	2021	2020
	HRK '000	HRK '000
Cash flows from operating activities
Profit before tax	92.035	68.355
	_	_
Adjustments for:
Depreciation and amortisation	34.483	31.729
Impairment losses and reversals	-126	2.028
Gain on sale of property, plant and equipment	-15	-37
Net loss/(gain) on remeasurement of financial assets	-229	-95
Interest income	-2.490	-1.803
Interest expense	807	0
Foreign exchange (gains)/losses, net	-2.679	3.127
Equity-settled transactions	2.285	2.451
	_	_
	124.070	105.755
Changes in working capital
In receivables	-32.106	126.134
In inventories	-37.550	92.656
In provisions	1.259	-4.248
In payables	107.634	-112.025
	_	_
Cash generated from operations	163.308	208.272
	_	_
Interest paid	-980	-665
Income taxes paid	-79	-407
	_	_
Net cash from operating activities	162.250	207.200
	_	_
Cash flows from investing activities
Proceeds from loans given	0	16.017
Loans given	0	-15.000
Interest received	2.580	902
Dividends received	60	59
Disposal of/(investment in) subsidiaries	0	0
Proceeds from sale of property, plant and equipment	100	155
Purchases of property, plant and equipment, and intangible assets	-9.311	-42.680
Deposits given to financial institutions - net	-1.208	0
Receipt of government grant	1.325	9.115
Net change of financial assets at fair value through profit and loss	0	5.105
	_	_
Net cash used in investing activities	-6.455	-26.328
	_	_
Cash flows from financing activities
Proceeds from borrowings	0	19.526
Repayment of borrowings	-11.308	0
Purchase of treasury shares	-3.240	-1.235
Dividends paid	-109.166	0
Payment of lease liabilities	-8.912	-8.575
	_	_
Net cash used in financing activities	-132.625	9.716
	_	_
Effects of exchange rate changes on cash and cash equivalents	275	-1.534
	_	_
Net increase/(decrease) in cash and cash equivalents	23.445	189.055
Cash and cash equivalents at the beginning of the year	245.833	81.833
	_	_
Cash and cash equivalents at the end of the year	269.278	270.887
	_	_

Annex 1
		ISSUER'S GENERAL DATA
Reporting period:		1.1.2021	to	30.9.2021
Year:		2021
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
Street and house number: Krapinska 45
	E-mail address: etk.company@ericsson.com
	Web address: www.ericsson.hr
Number of employees (end of the reporting	2633
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: tatjana.ricijas@ericsson.com
	Audit firm: KPMG Croatia d.o.o.
	(name of the audit firm) Certified auditor: Domagoj Hrkać
	(name and surname)

BALANCE SHEET balance as at 30.09.2021

in HRK

Submitter: ERICSSON NIKOLA TESLA D.D. Item	ADP code	Last day of the preceding business year	At the reporting date 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	234.131.271	190.983.502
I INTANGIBLE ASSETS (ADP 004 to 009)	003	347.257	257.962
1 Research and development	004	0	0
2 Concessions, patents, licences, trademarks, software and other rights	005	347.257	257.962
3 Goodwill	006	0	0
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	186.466.923	160.442.493
1 Land	011	15.605.344	15.605.344
2 Buildings	012	63.556.029	82.568.871
3 Plant and equipment	013	59.069.829	46.789.811
4 Tools, working inventory and transportation assets 5 Biological assets	014	16.328.620	14.804.630
6 Advances for the purchase of tangible assets	015	0	0
	016	0	0
7 Tangible assets in preparation	017	31.854.457	627.030
8 Other tangible assets	018	52.644	46.807
9 Investment property	019	0	0
III FIXED FINANCIAL ASSETS (ADP 021 to 030)	020	24.795.092	19.293.836
1 Investments in holdings (shares) of undertakings within the group	021	1.052.798	1.052.798
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	48.394
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	18.192.644
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	14.124.953	2.592.165
1 Receivables from undertakings within the group	032	0	0
2 Receivables from companies linked by virtue of participating interests	033	0	0
3 Customer receivables	034	13.688.818	2.221.237
4 Other receivables	035	436.135	370.928
V DEFERRED TAX ASSETS	036	8.397.046	8.397.046
C) CURRENT ASSETS (ADP 038+046+053+063)	037	519.614.299	637.512.727
I INVENTORIES (ADP 039 to 045)	038	44.178.636	81.728.382
1 Raw materials and consumables	039	0	0
2 Work in progress	040	44.178.636	81.728.382
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	192.626.445	242.319.373
1 Receivables from undertakings within the group 2 Receivables from companies linked by virtue of participating	047	10.027.853	4.053.679
interests	048	87.904.823	84.315.447
3 Customer receivables	049	81.353.019	139.969.217
4 Receivables from employees and members of the undertaking	050	0	0
5 Receivables from government and other institutions	051	12.276.444	552.632
6 Other receivables	052	1.064.306	13.428.398
III CURRENT FINANCIAL ASSETS (ADP 054 to 062)	053	36.976.148	44.187.220
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	33.046.379
8 Loans, deposits, etc. given	061	4.040.000	11.140.841
9 Other financial assets	062	0	0
IV CASH AT BANK AND IN HAND	063	245.833.070	269.277.752
D ) PREPAID EXPENSES AND ACCRUED INCOME	064	32.378.858	12.372.340
E) TOTAL ASSETS (ADP 001+002+037+064)	065	786.124.428	840.868.569
OFF-BALANCE SHEET ITEMS LIABILITIES	066	0	0
A) CAPITAL AND RESERVES (ADP 068 to	067	307.093.382	277.363.117
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	41.815.766
1 Legal reserves	071	6.658.250	6.658.250
2 Reserves for treasury shares	072	13.903.446	38.903.446
3 Treasury shares and holdings (deductible item)	073	-506.200	-3.745.930
4 Statutory reserves	074	0	0
5 Other reserves IV REVALUATION RESERVES	075	0	0
V FAIR VALUE RESERVES AND OTHER (ADP 078 to 082)	076	0	0
	077	0	0
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	0	0
085)	083	77.382.005	21.995.270
1 Retained profit	084	77.382.005	21.995.270
2 Loss brought forward	085	0	0
VII PROFIT OR LOSS FOR THE BUSINESS YEAR (ADP 087-088)	086	76.490.881	80.387.081
1 Profit for the business year	087	76.490.881	80.387.081
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	7.334.818	5.891.662
obligations 2 Provisions for tax liabilities	091	7.334.818	5.891.662
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	57.262.034	41.874.245
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	56.850.760	41.554.169
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	411.274	320.076
11 Deferred tax liability	108	0	0
D) SHORT-TERM LIABILITIES (ADP 110 to 123)	109	192.526.767	250.425.993
1 Liabilities to undertakings within the group	110	23.160.257	1.695.864
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	6.598.169	27.993.013
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	25.922.607	23.657.556
7 Liabilities for advance payments	116	10.512.321	36.371.187
8 Liabilities to suppliers	117	3.481.087	20.533.800
9 Liabilities for securities	118	0	0
10 Liabilities to employees	119	84.092.234	95.956.445
11 Taxes, contributions and similar liabilities	120	25.161.965	27.917.755
12 Liabilities arising from the share in the result 13 Liabilities arising from fixed assets held for sale	121	0	0
14 Other short-term liabilities	122	0	0
	123	13.598.127	16.300.373
E) ACCRUALS AND DEFERRED INCOME	124	221.907.427	265.313.552
F) TOTAL – LIABILITIES (ADP 067+090+097+109+124)	125	786.124.428	840.868.569
G) OFF-BALANCE SHEET ITEMS	126	0	0

for the period 01.01.2021 to 30.09.2021 STATEMENT OF PROFIT OR LOSS

in HRK

Submitter: ERICSSON NIKOLA TESLA D.D. Item	ADP	Same period of the previous year		Current period
1	code 2	Cumulative 3	Quarter 4	Cumulative 5	Quarter 6
I OPERATING INCOME (ADP 002 to 006) 1 Income from sales with undertakings within the group	001 002	1.050.034.777 9.541.776	295.635.881 1.593.138	1.088.331.019 10.779.354	336.289.911 1.218.030
2 Income from sales (outside group) 3 Income from the use of own products, goods and services	003 004	1.027.233.301 0	290.052.138 0	1.061.123.881 0	327.490.753 0
4 Other operating income with undertakings within the group 5 Other operating income (outside the group)	005 006	967.476 12.292.224	267.203 3.723.402	1.343.618 15.084.166	444.531 7.136.597
II OPERATING EXPENSES (ADP 08+009+013+017+018+019+022+029)	007	981.317.067	288.215.719	999.956.403	341.516.726
1 Changes in inventories of work in progress and finished goods 2 Material costs (ADP 010 to 012)	008 009	92.656.178 299.719.556	29.638.266 66.484.678	-37.549.746 395.013.247	-8.007.774 126.131.775
a) Costs of raw materials and consumables b) Costs of goods sold	010 011	162.936.739 0	37.132.042 0	221.090.256 0	86.222.114 0
c) Other external costs 3 Staff costs (ADP 014 to 016)	012 013	136.782.817 523.944.415	29.352.636 172.505.187	173.922.991 568.150.063	39.909.661 198.496.960
a) Net salaries and wages b) Tax and contributions from salary costs c) Contributions on salaries	014 015 016	309.344.805 155.385.850 59.213.760	102.905.124 49.123.713 20.476.350	349.330.275 155.001.644 63.818.144	120.372.186 55.236.719 22.888.055
4 Depreciation 5 Other costs	017 018	31.728.585 28.096.188	10.826.968 7.020.543	34.482.899 28.564.186	11.415.959 10.309.429
6 Value adjustments (ADP 020+021) a) fixed assets other than financial assets	019 020	1.532.946 0	563.671 0	1.357.399 0	353.308 0
b) current assets other than financial assets 7 Provisions (ADP 023 to 028)	021 022	1.532.946 2.991.647	563.671 806.039	1.357.399 9.806.573	353.308 3.235.754
a) Provisions for pensions, termination benefits and similar b) Provisions for tax liabilities	023 024	2.770.339 0	639.862 0	5.927.404 0	3.187.735 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	221.308 0	166.177 0	524.854 3.354.315	48.019 0
8 Other operating expenses III FINANCIAL INCOME (ADP 031 to 040)	029 030	647.552 1.834.469	370.367 -500.890	131.782 4.519.425	-418.685 2.235.896
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	6.497	0	0	0
5 Exchange rate differences and other financial income from operations with undertakings within the group	035	88.601	-4.677	0	0
6 Income from other long-term financial investments and loans 7 Other interest income 8 Exchange rate differences and other financial income	036 037 038	0 1.739.371 0	0 556.717 -1.052.930	0 2.490.289 1.859.535	0 1.130.458 1.181.829
9 Unrealised gains (income) from financial assets 10 Other financial income	039 040	0 0	0 0	0 169.601	0 -76.391
IV FINANCIAL EXPENSES (ADP 042 to 048) 1 Interest expenses and similar expenses with undertakings within the	041	2.197.224	1.325.007	859.234	310.225
group 2 Exchange rate differences and other expenses from operations with	042	0	0	30.511	3.128
undertakings within the group 3 Interest expenses and similar expenses	043 044	0 976.520	0 347.135	22.095 806.628	3.629 303.468
4 Exchange rate differences and other expenses 5 Unrealised losses (expenses) from financial assets	045 046	1.152.524 0	1.152.524 0	0 0	0 0
6 Value adjustments of financial assets (net) 7 Other financial expenses	047 048	0 68.180	0 -174.652	0 0	0 0
V SHARE IN PROFIT FROM UNDERTAKINGS LINKED BY VRITUE OF PARTICIPATING INTERESTS	049	0	0	0	0
VI SHARE IN PROFIT FROM JOINT VENTURES VII SHARE IN LOSS OF COMPANIES LINKED BY VIRTUE OF	050 051	0 0	0 0	0 0	0 0
PARTICIPATING INTEREST VIII SHARE IN LOSS OF JOINT VENTURES IX TOTAL INCOME (ADP 001+030+049 +050)	052	0	0	0	0
X TOTAL EXPENDITURE (ADP 007+041+051 + 052) XI PRE-TAX PROFIT OR LOSS (ADP 053-054)	053 054 055	1.051.869.246 983.514.291 68.354.955	295.134.991 289.540.726 5.594.265	1.092.850.444 1.000.815.637 92.034.807	338.525.807 341.826.951 -3.301.144
1 Pre-tax profit (ADP 053-054) 2 Pre-tax loss (ADP 054-053)	056 057	68.354.955 0	5.594.265 0	92.034.807 0	0 -3.301.144
XII INCOME TAX XIII PROFIT OR LOSS FOR THE PERIOD (ADP 055-059)	058 059	7.053.892 61.301.063	-1.379.430 6.973.695	11.647.726 80.387.081	-2.512.745 -788.399
1 Profit for the period (ADP 055-059) 2 Loss for the period (ADP 059-055)	060 061	61.301.063 0	6.973.695 0	80.387.081 0	0 -788.399
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) TOTAL OPERATIONS (to be filled in only by undertakings subject to IFRS with discontinued operations)	066 067
XVI PRE-TAX PROFIT OR LOSS (ADP 055-+062) 1 Pre-tax profit (ADP 068)	068 069	0	0	0	0
2 Pre-tax loss (ADP 068) XVII INCOME TAX (ADP 058+065)	070 071	0	0	0	0
XVIII PROFIT OR LOSS FOR THE PERIOD (ADP 068-071) 1 Profit for the period (ADP 068-071)	072 073
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
XIX PROFIT OR LOSS FOR THE PERIOD (ADP 076+077) 1 Attributable to owners of the parent	075 076	0 0	0 0	0 0	0 0
2 Attributable to minority (non-controlling) interest STATEMENT OF OTHER COMPRHENSIVE INCOME (to be filled in by undertakings subject to IFRS)	077	0	0	0	0
I PROFIT OR LOSS FOR THE PERIOD II OTHER COMPREHENSIVE INCOME/LOSS BEFORE TAX	078 079	61.301.063 0	8.993.710 0	80.387.081 0	-788.399 0
(ADP 80+ 87) 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	081	0	0	0	0
assets 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 0	0 0	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 3 Profit or loss arising from effective cash flow hedging	089	0	0	0	0
4 Profit or loss arising from effective hedge of a net investment in a foreign operation	090 091	0 0	0 0	0 0	0 0
5 Share in other comprehensive income/loss of companies linked by	092	0	0	0	0
virtue of participating interests 6 Changes in fair value of the time value of option	093	0	0	0	0
7 Changes in fair value of forward elements of forward contracts 8 Other items that may be reclassified to profit or loss	094 095	0 0	0 0	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	61.301.063	8.993.710	80.387.081	-788.399
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		0	0	0	0
100+101) 1 Attributable to owners of the parent	099 100	0	0	0	0
2 Attributable to minority (non-controlling) interest	101	0	0	0	0

STATEMENT OF CASH FLOWS - indirect method for the period 01.01.2021 to 30.09.2021

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		68.354.955	92.034.807
2 Adjustments (ADP 003 to 010):	001 002	37.400.070	32.035.362
a) Depreciation	003	31.728.585	34.482.899
b) Gains and losses from sale and value adjustment of fixed tangible and intangible assets	004	-37.210	-14.987
c) Gains and losses from sale and unrealised gains and losses and value
adjustment of financial assets	005	-95.102	-229.325
d) Interest and dividend income e) Interest expenses	006 007	-1.802.977 0	-2.490.289 806.628
f) Provisions	008	0	0
g) Exchange rate differences (unrealised)	009	3.127.235	-2.678.739
h) Other adjustments for non-cash transactions and unrealised gains and losses	010	4.479.539	2.159.175
I Cash flow increase or decrease before changes in working capital (ADP 001+002)	011	105.755.025	124.070.169
3 Changes in the working capital (ADP 013 to 016)	012	102.516.967	39.238.026
a) Increase or decrease in short-term liabilities	013	-112.024.998	107.634.463
b) Increase or decrease in short-term receivables	014	126.133.897	-32.105.779
c) Increase or decrease in inventories d) Other increase or decrease in working capital	015 016	92.656.178 -4.248.110	-37.549.746 1.259.088
II Cash from operations (ADP 011+012)	017	208.271.992	163.308.195
4 Interest paid	018	-664.993	-979.981
5 Income tax paid	019	-406.638	-78.545
A) NET CASH FLOW FROM OPERATING ACTIVITIES (ADP 017 to 019)	020	207.200.361	162.249.669
Cash flow from investment activities
1 Cash receipts from sales of fixed tangible and intangible assets	021	154.979	100.493
2 Cash receipts from sales of financial instruments	022	5.104.666	0
3 Interest received	023	901.906	2.579.979
4 Dividends received	024	58.616	59.724
5 Cash receipts from repayment of loans and deposits 6 Other cash receipts from investment activities	025 026	16.017.347 9.115.046	0 1.324.523
III Total cash receipts from investment activities (ADP 021 to 026)	027	31.352.560	4.064.719
1 Cash payments for the purchase of fixed tangible and intangible assets	028	-42.680.199	-9.311.079
2 Cash payments for the acquisition of financial instruments	029	0	0
3 Cash payments for loans and deposits for the period	030	-15.000.000	-1.208.484
4 Acquisition of a subsidiary, net of cash acquired 5 Other cash payments from investment activities	031	0	0
IV Total cash payments from investment activities (ADP 028 to 032)	032 033	0 -57.680.199	0 -10.519.563
B) NET CASH FLOW FROM INVESTMENT ACTIVITIES (ADP 027 +033)	034	-26.327.639	-6.454.844
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	19.525.750	0
4 Other cash receipts from financing activities V Total cash receipts from financing activities (ADP 035 to 038)	038 039	0 19.525.750	0 0
1 Cash payments for the repayment of credit principals, loans and other borrowings and debt financial instruments	040	0	-11.308.105
2 Cash payments for dividends	041	-390	-109.165.903
3 Cash payments for finance lease	042	-8.575.000	-8.911.636
4 Cash payments for the redemption of treasury shares and decrease in initial (subscribed) capital	043	-1.234.760	-3.239.730
5 Other cash payments from financing activities	044
VI Total cash payments from financing activities (ADP 040 to 044)	045	-9.810.150	-132.625.374
C) NET CASH FLOW FROM FINANCING ACTIVITIES (ADP 039 +045)	046	9.715.600	-132.625.374
1 Unrealised exchange rate differences in respect of cash and cash equivalents	047	-1.533.786	275.231
D) NET INCREASE OR DECREASE IN CASH FLOWS (ADP 020+034+046+047)	048	189.054.536	23.444.682
E) CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD	049	81.832.522	245.833.070
F) CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD(ADP 048+049)	050	270.887.058	269.277.752

for the period 01.01.2021 to 30.09.2021 STATEMENT OF CASH FLOWS - direct method

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 Cash receipts from customers	001	0	0
2 Cash receipts from royalties, fees, commissions and other revenue	002	0	0
3 Cash receipts from insurance premiums	003	0	0
4 Cash receipts from tax refund	004	0	0
5 Other cash receipts from operating activities	005	0	0
I Total cash receipts from operating activities (ADP 001 to 005)	006	0	0
1 Cash payments to suppliers	007	0	0
2 Cash payments to employees	008	0	0
3 Cash payments for insurance premiums	009	0	0
4 Interest paid	010	0	0
5 Income tax paid	011	0	0
6 Other cash payments from operating activities	012	0	0
II Total cash payments from operating activities (ADP 007 to 012)	013	0	0
A) NET CASH FLOW FROM OPERATING ACTIVITIES (ADP 006 + 013)	014	0	0
Cash flow from investment activities
1 Cash receipts from sales of fixed tangible and intangible assets	015	0	0
2 Cash receipts from sales of financial instruments	016	0	0
3 Interest received	017	0	0
4 Dividends received	018	0	0
5 Cash receipts from the repayment of loans and deposits	019	0	0
6 Other cash receipts from investment activities	020	0	0
III Total cash receipts from investment activities (ADP 015 to 020)	021	0	0
1 Cash payments for the purchase of fixed tangible and intangible assets	022	0	0
2 Cash payments for the acquisition of financial instruments	023	0	0
3 Cash payments for loans and deposits	024	0	0
4 Acquisition of a subsidiary, net of cash acquired	025	0	0
5 Other cash payments from investment activities	026	0	0
IV Total cash payments from investment activities (ADP 022 to 026)	027	0	0
B) NET CASH FLOW FROM INVESTMENT ACTIVITIES (ADP 021 + 027)	028	0	0
Cash flow from financing activities
1 Cash receipts from the increase in initial (subscribed) capital 2 Cash receipts the from issue of equity financial instruments and debt	029 030	0 0	0 0
financial instruments
3 Cash receipts from credit principals, loans and other borrowings	031	0	0
4 Other cash receipts from financing activities	032	0	0
V Total cash receipts from financing activities (ADP 029 to 032)	033	0	0
1 Cash payments for the repayment of credit principals, loans andother borrowings and debt financial instruments	034	0	0
2 Cash payments for dividends	035	0	0
3 Cash payments for finance lease	036	0	0
4 Cash payments for the redemption of treasury shares and decrease in
initial (subscribed) capital	037	0	0
5 Other cash payments from financing activities	038	0	0
VI Total cash payments from financing activities (ADP 034 to 038)	039	0	0
C) NET CASH FLOW FROM FINANCING ACTIVITIES (ADP 033 +039)	040	0	0
1 Unrealised exchange rate differences in respect of cash and cash equivalents	041	0	0
D) NET INCREASE OR DECREASE IN CASH FLOWS (ADP 014 + 028 + 040 + 041)	042	0	0
E) CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD	043	0	0
F) CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD (042+043)	044	0	0

STATEMENT OF CHANGES IN EQUITY for the period from 1.1.2021 to	30.9.2021																	in HRK
										Attributable to owners of the parent
	ADP					Treasury shares				Fair value of financial assets		Hedge of a net		Exchange rate	Retained profit /		Total attributable to	Minority (non	Total capital and
Item	code	Initial (subscribed) capital		Capital reserves Legal reserves	Reserves for treasury shares	and holdings		Statutory reserves Other reserves	Revaluation reserves	through other comprehensive	Cash flow hedge - effective portion	investment in a foreign operation -	Other fair value reserves	differences from translation of	loss brought	Profit/loss for the business year	owners of the	controlling) interest	reserves
						(deductible item)				income (available for sale)		effective portion		foreign operations	forward		parent
1	2	3	4	5	6	7	8	9	10	11	12	13	14	15	16	17	18 (3 to 6 - 7 + 8 to 17)	19	20 (18+19)
Previous period
1 Balance on the first day of the previous business year 2 Changes in accounting policies	01 02	133.165.000 0		0 6.658.250 0 0	14.872.546 0	240.540 0	0 0		0 0 0 0	0 0	0 0	0 0	0 0	0 0	139.344.647 0	0 0	293.799.903 0	0 0	293.799.903 0
3 Correction of errors	03	0		0 0	0	0	0		0 0	0	0	0	0	0	0	0	0	0	0
4 Balance on the first day of the previous business year (restated) (ADP 01 to 03)	04	133.165.000		0 6.658.250	14.872.546	240.540	0		0 0	0	0	0	0	0	139.344.647	0	293.799.903	0	293.799.903
5 Profit/loss of the period 6 Exchange rate differences from translation of foreign operations	05	0		0 0	0	0	0		0 0	0	0	0			0	76.490.881	76.490.881		76.490.881
7 Changes in revaluation reserves of fixed tangible and intangible assets	06	0		0 0	0	0	0		0 0	0	0	0			0	0	0		0
	07	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
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
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
11 Share in other comprehensive income/loss of companies linked by virtue of	11	0		0 0	0	0	0		0 0	0	0	0	0	0	0	0	0		0
participating interests 12 Actuarial gains/losses on the defined benefit obligation	12	0		0 0	0	0	0								0	0	0		0
13 Other changes in equity unrelated to owners	13	0		0 0	0	0	0		0 0	0	0	0	0	0	0	0	0		0
14 Tax on transactions recognised directly in equity	14	0		0 0	0	0	0		0 0	0	0	0	0	0	0	0	0		0
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
16 Decrease in initial (subscribed) capital arising from the pre-bankruptcy	16	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	17	0		0 0	0	0	0		0 0	0	0	0	0	0	0	0	0		0
18 Redemption of treasury shares/holdings 19 Payments from members/shareholders	18	0		0 0	0	1.234.760	0		0 0	0	0	0	0	0	0	0	-1.234.760		-1.234.760
20 Payment of share in profit/dividend	19 20	0 0		0 0 0 0	0 0	0 0	0 0		0 0 0 0	0 0	0 0	0 0	0 0	0 0	0 -65.230.956	0 0	0 -65.230.956		0 -65.230.956
21 Other distributions and payments to members/shareholders 22 Transfer to reserves according to the annual schedule	21	0 0		0 0 0 0	-969.100 0	-969.100 0	0 0		0 0 0 0	0 0	0 0	0 0	0 0	0 0	3.268.314 0	0 0	3.268.314 0		3.268.314 0
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
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		0 0	0	0	0	0	0	77.382.005	76.490.881	307.093.382	0	307.093.382
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	76.490.881	76.490.881	0	76.490.881
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	28	133.165.000		0 6.658.250	13.903.446	506.200	0		0 0	0	0	0	0	0	77.382.005	76.490.881	307.093.382	0	307.093.382
2 Changes in accounting policies 3 Correction of errors	29 30	0 0		0 0 0 0	0 0	0 0	0 0		0 0 0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0		0 0
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		0 0	0	0	0	0	0	77.382.005	76.490.881	307.093.382	0	307.093.382
5 Profit/loss of the period	32	0		0 0	0	0	0		0 0	0	0	0			0	80.387.081	80.387.081		80.387.081
6 Exchange rate differences from translation of foreign operations	33	0		0 0	0	0	0		0 0	0	0	0			0	0	0		0
7 Changes in revaluation reserves of fixed tangible and intangible assets	34	0		0 0	0	0	0		0 0	0	0	0			0	0	0		0
8 Gains or losses from subsequent measurement of financial assets at fair value	35	0		0 0	0	0	0		0 0	0	0	0			0	0	0		0
through other comprehensive income (available for sale) 9 Profit or loss arising from effective cash flow hedge	36	0		0 0	0	0	0		0 0	0	0	0			0	0	0		0
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
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
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
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
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
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
settlement procedure
17 Decrease in initial (subscribed) capital arising from the reinvestment of profit 18 Redemption of treasury shares/holdings	44	0		0 0	0	0	0		0 0	0	0	0	0	0	0	0	0		0
19 Payments from members/shareholders	45 46	0 0		0 0 0 0	25.000.000 0	3.239.730 0	0 0		0 0 0 0	0 0	0 0	0 0	0 0	0 0	-25.000.000 0	0 0	-3.239.730 0		-3.239.730 0
20 Payment of share in profit/dividend 21 Other distributions and payments to members/shareholders	47	0		0 0	0	0	0		0 0	0	0	0	0	0	-109.162.418	0	-109.162.418		-109.162.418
22 Carryforward per annual plane	48 49	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	2.284.802 76.490.881	0 -76.490.881	2.284.802 0		2.284.802 0
23 Increase in reserves arising from the pre-bankruptcy settlement procedure	50	0		0 0	0	0	0		0 0	0	0	0	0	0	0	0	0		0
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	38.903.446	3.745.930	0		0 0	0	0	0	0	0	21.995.270	80.387.081	277.363.117	0	277.363.117
APPENDIX TO THE STATEMENT OF CHANGES IN EQUITY (to be filled in by undertakings that draw up financial statements in accordance with the IFRS)
I OTHER COMPREHENSIVE INCOME FOR THE CURRENT PERIOD, NET OF TAX (ADP 33 to 41)	52	0		0 0	0	0	0		0 0	0	0	0	0	0	0	0	0	0	0
II COMPREHENSIVE INCOME OR LOSS FOR THE CURRENT PERIOD (ADP 32	53	0		0 0	0	0	0		0 0	0	0	0	0	0	0	80.387.081	80.387.081	0	80.387.081
do 52)
III TRANSACTIONS WITH OWNERS IN THE CURRENT PERIOD RECOGNISED DIRECTLY IN EQUITY (ADP 42 to 50)	54	0		0 0	25.000.000	3.239.730	0		0 0	0	0	0	0	0	-55.386.735	-76.490.881	-110.117.346	0	-110.117.346

NOTES TO FINANCIAL STATEMENTS - TFI

(drawn up for quarterly reporting periods)

Name of the issuer: ERICSSON NIKOLA TESLA D.D. Personal identification number (OIB): 84771175

Reporting period: Q3 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 semiannual 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 2. adopted accounting policies (only an indication of whether there has been a change from the previous period) 3. the total amount of any financial commitments, guarantees or contingencies that are not included in the balance sheet, and an indication of the nature and form of any valuable security which has been provided; any commitments concerning pensions

of the undertaking within the group or company linked by virtue of participating interest shall be disclosed separately 4. the amount and nature of individual items of income or expenditure which are of exceptional size or incidence

1. amounts owed by the undertaking and falling due after more than five years, as well as the total debts of the undertaking covered by valuable security furnished by the undertaking, specifying the type and form of security

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

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

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

1. 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

2. 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

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

b) Policies 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 first half of 2021 are prepared applying the same accounting policies as in the latest annual financial statements presented in the Annual Report for 2020.

d) The issuer does not have sesonal bussines activities.

e)

Segment report
		Networks Digital Services		Managed Services		Other		Unallocated		Total
			30.09.2021 30.09.2020 30.09.2021 30.09.2020 30.09.2021 30.09.2020 30.09.2021 30.09.2020 30.09.2021 30.09.2020 30.09.2021 30.09.2020
	'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 revenu		649.408 706.488		403.625 313.309	13.839	10.918	5.031	6.060	0		0 1.071.903 1.036.775
Operating profit	75.814	58.884	37.987	31.702	653	-1.273	431	708	-26.510	-21.303	88.375	68.718

Transactions with related parties:	30.9.2021 HRK 000	30.9.2020 HRK 000
Sales	662.813	703.138
Purchases	204.145	244.789
Balances with related parties
	HRK 000	30.9.2021 31.12.2020 HRK 000
Receivable	88.369	97.933
Payable	29.689	29.758

1.

1. Issuer's name, registered office (address), legal form, country of establishment, entity's registration number are disclosed in the sheet General data of this document.

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

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

2. 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.

3. The average number of employees during the reporting period is 2601 (Q1-Q3 2020: 2513). The Company does not categorise employees.

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

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

6. during reporting period. The Company has no participating interest.

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

8. The Company has no participation certificates, convertible debentures, warrants, options or similar securities or rights.

9. The Company has no shares in companies having unlimited liability.

10. 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.

11. 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

1. arrangements are material. There are no material events arising after the balance sheet date which are not reflected in the profit and loss account or balance sheet. APPENDIX (Reconciliation of the differences arrising due to structure and classification of the positions in TFI-POD in XLS format compared

Balance Sheet to classification of the positions in the audited annual report in PDF):

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 021 Investments in holdings (shares) of undertakings within the group, 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

Within the category Equity in Statement of financial position total amount of Retained earnings is indicated in TFI-POD form Loans, deposits, etc. given.

under AOP 083 Retaind profit/loss brought forward and 086 Profit or Loss for the business year. 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

Also, within the category Current liabilities in Statement of financial position total amount of Provisions is indicated in TFI-POD income.

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

P&L expenses.

and other financial institutions

Cost structure in Statement of comprehensive income (FS form) is according to function and the presentation is different from TFI-POD forms where cost is presented by nature. Total amount of Cost of Sales, Selling, Administrative and Other operating expenses equals to amount of AOP 007 Operating