Information on the impact of COVID – 19 on the Company business

In line with the recommendations by HANFA (the Croatian National Competent Authority) and the European Securities and Markets Authority (ESMA), Ericsson Nikola Tesla d.d., Zagreb, Krapinska 45, hereby informs the public of the impact of pandemics of novel Coronavirus COVID-19 on its business activities.

Ericsson Nikola Tesla Group is a large local exporter and the largest Croatian exporter of knowledge with more than 3200 employees. Our business is partly related to activities in countries around the globe that are significantly hit by the pandemics of the novel Coronavirus COVID – 19. The closing of borders of some countries and travel bans; disturbances in delivery of equipment and raw materials at the global level; deferred investment projects in Croatia and abroad and, consequently, reduced demand for some of our activities, could have certain negative effects on some segments of our business.

Due to global presence, the Group has already felt disturbances in the flow of people and goods that, provided they persist, will have an effect on the scale of some areas of our business and on current projects that engage our experts in the country and abroad. The Group estimates that, for the moment, the largest impact on business could be due to reduced mobility related to travel and field work of our employees, including those posted abroad for longer periods, in risk countries.

If the situation with the pandemics of the novel Coronavirus persists, the execution/realization of several export deals that have been contracted recently could be obstructed precisely due to geographical and healthcare limitations to our activities. The Group holds that it has sufficient means and opportunities in the financial market that, combined with the appropriate measures taken by the government to relieve business in these circumstances, it can adequately address all challenges and continue its business.

As a socially responsible enterprise, Ericsson Nikola Tesla Group always prioritizes the health and safety of its employees, customers, partners and other stakeholders. In line with that, Ericsson Nikola Tesla Group has taken all required preventive and safety measures to minimize negative effects of COVID-19 on employees, customers, partners and business activities.

The Management Board and the Executive Management of Ericsson Nikola Tesla are primarily concerned with health protection and working conditions. At the same time, we are implementing a series of activities and measures to create an environment which would ensure conditions for timely realization within set quality standards of the contracted business, ensuring business continuity and securing jobs.

One of the measures taken, is our recommendation of working from home, wherever possible, to our employees, that is being implemented in agreement with their line managers. As positive circumstances, we can state that we have ICT infrastructure in place and that our employees are prepared and equipped to work remotely. Therefore, the majority of them can work from home with no adverse impacts on quality and productivity, which is why we hold that the impact of the novel Coronavirus COVID-19 on our business will be relatively limited.

Due to the fact that we have no means of predicting further developments regarding the novel Coronavirus COVID – 19, at present, we cannot provide you with more detailed information on its concrete financial impacts on our business.  

The Management Board and the Executive Management continue to monitor the situation and will implement required measures related to health of people and sustainable business continuity of the Company, in line with guidelines and recommendations by the relevant government authorities and bodies.

Ericsson Nikola Tesla d.d.