Romania Reporting (CbCr)

The public Country-by-Country (CbC) Report for Motorola covering the reporting period ending 31 December 2023 ("FY23") and prepared in accordance with the provisions of Chapter 13 of Order 1802 / 2014 for the approval of the Accounting regulations regarding the individual annual financial statements and consolidated annual financial statements, as further amended and completed is currently available free of charge on the company's website Motorola Solutions.  https://www.motorolasolutions.com/en_xu. The data and information disclosed is limited to Motorola Group's operations in Romania, as the Group’s ultimate parent company, Motorola Solutions, Inc. & Subsidiaries, has not made available to Motorola Romania CbC data regarding the Group’s worldwide operations. 

Romania has introduced public CbC disclosure requirements two years ahead of other European Member States, where the obligation for public disclosure will generally begin with the calendar year 2025. The Motorola Group is committed to adhering to tax and accounting compliance rules and regulations in every jurisdiction where it operates, however, the early implementation of these requirements places the Group at a disadvantage, as it would compel the disclosure of sensitive business information two years before other companies that are not yet subject to similar obligations. 

Additionally, the requirement to submit the report in a machine-readable format adds significant complexity to the publication process. This challenge is partly due to the absence of a predefined and officially published structure for the machine-readable format by the authorities, unlike the framework provided for country-by-country reporting (e.g., Form R404). Moreover, the process is further complicated by the fact that the most recent guidance / communication issued by the Ministry of Finance on this matter, published on 6 December, still leaves room for interpretation.

Moreover, as an alternative to publishing on the entity's/subsidiary's/branch's website, the law provides the option to simultaneously make the report available to the public in a machine-readable format on the internet page of the registry mentioned in Directive (EU) 2017/1132, as transposed into national legislation, and free of charge for any third party within the Union. The fact that no procedure for this has been published yet makes the disclosure process of Motorola group even more uncertain and difficult.

Motorola group is of the opinion that the business environment requires clear and stable instructions and procedures over time (from one reporting period to another) to adapt their data collection and processing processes and adjust their IT systems to meet this new reporting obligation. Such clarity and predictability are critically important, especially given the already demanding agenda involving, on the one hand, the implementation of other reporting and control systems (e-Invoice, e-Transport, SAF-T, e-VAT, e-Registers, e-Seal) and, on the other hand, the alignment of data reported through these systems, considering the different rules specific to each system. These challenges are already placing significant pressure on businesses.

Beside the above, Motorola operates in the highly competitive technology market, where numerous companies compete for market share through direct-to-consumer sales strategies. This market is marked by intense competition, requiring businesses to constantly innovate in product offerings, sales approaches, and marketing strategies, while also coordinating global marketing efforts to attract and retain customers. The competitive nature of the industry further necessitates effective management of proprietary business information to maintain a competitive edge and drive sustained growth. As a result, disclosing confidential data from regions outside Romania could jeopardize Motorola's competitive position and strategic initiatives.

It is also worth mentioning that Motorola Group is complying with the nonpublic CbC reporting requirements in Romania by performing a secondary filing as required by the Romanian legislation. In light of the reasons outlined above, including the lack of detailed guidance on how to best complete and efficiently submit the required information, at this stage the group intends to provide only the Romania-specific information with respect to public CbC reporting obligations.

Motorola Group remains committed to compliance and transparency in all jurisdictions where it operates. Consequently, until clearer and more comprehensive guidelines are issued by the authorities, limiting the disclosure to Romania-specific data seems to be the only reasonable option so that the group can fulfill its obligations without risking inaccuracies or inconsistencies in the reporting process. The group will continue to monitor developments in public CbC reporting requirements and adjust its approach accordingly to align with regulatory expectations.

Motorola fully intends to comply with the disclosure requirements beginning with calendar year 2025 when public CbC reporting becomes commonplace for all large MNE Groups operating within the European Union.

Section 1.1 -  General information ultimate parent of the group / Sectiunea 1 - Informatii generale cu privire la societatea mama finala din cadrul grupului

Section 1.2 -  General information Romanian company / Sectiunea 1 - Informatii generale legate de societatea din Romania

Section 2 - Overview of allocation of elements on a country-by-country basis / Sectiunea 2 - Prezentare generala a alocarii elementelor pentru fiecare tara in parte

Section 3 - List of subsidiaries and activities / Sectiunea 3 - Lista subsidiarelor și a activităților