Ericsson Nikola Tesla Group - PR
Categories: Investors Notices
The situation caused by the invasion of Ukraine has shocked us all and provoked numerous reactions in social, political and economic terms. We at Ericsson Nikola Tesla Group sympathize with the Ukrainian people and express our solidarity as a company and as individuals in different ways.
These tragic events have led to a tectonic shift and significantly hinder Ericsson Nikola Tesla Group’s business in certain markets. The Group has no contractual obligations in Russia and Ukraine; however, political and economic uncertainty that has grown into a riskier form of business conditions for now adversely affects both the implementation of Ericsson Nikola Tesla’s contracted business in Belarus and new planned business opportunities.
In Belarus, we have a local company with 25 employees, and one of our most important activities is the expansion of LTE networks for their operators and the informatization of the central health system of that country.
In 2021, revenue from these activities accounted for about 4% of the Group’s total sales results and significantly contributed to operating cash flow.
The Management Board and Executive Management continuously monitor the situation in order to react in a timely manner and mitigate risks. In doing so, we act in accordance with binding legislation, sanctions and restrictive measures, among which we single out the decisions of the EU, the Republic of Croatia, the Croatian Bank for Reconstruction and Development, the World Bank and Ericsson guidelines.
Although the situation is challenging and uncertain in several markets, the Management Board and Executive Management have assessed that Ericsson Nikola Tesla Group maintains business and financial stability. Potential cessation of our market activities in the Belarus market would certainly affect our plans and results, especially the planned sales revenue, operating margin and operating cash flow, but it would not ultimately disrupt Ericsson Nikola Tesla Group’s business and financial stability.
Given the wide range of jobs and markets in which our experts work, we are taking action to reduce the negative impact of this crisis on business by increasing the engagement of our experts in research and development and other high-value services within the global organization.
Our focus remains on our priorities; we act with integrity, responsibility and empathy for all our stakeholders.
Communications Ericsson Nikola Tesla