Consolidated Financial Statement 2025

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*The marked items have been restated in note 2, accounting principles, point d.

These consolidated financial statements were approved by the Board of Directors and were authorized for issue on 05.05.2026.

*The marked items have been restated in note 2, accounting principles, point d.

These consolidated financial statements were approved by the Board of Directors and were authorized for issue on 05.05.2026.

These consolidated financial statements were approved by the Board of Directors and were authorized for issue on 05.05.2026.

These consolidated financial statements were approved by the Board of Directors and were authorized for issue on 05.05.2026.

These consolidated financial statements were approved by the Board of Directors and were authorized for issue on 05.05.2026.

1. GENERAL INFORMATION ABOUT THE GROUP

   These financial statements are the consolidated financial statements of PROMATERIS SA ("Parent Company" or "PROMATERIS SA") and its subsidiaries (together the "Group") as of and for the financial year ended December 31, 2025.

   The registered office of the Parent Company is in Buftea, Sos. Bucuresti-Tirgoviste no. 1, Ilfov County, Romania, unique registration code RO 108, registration number with the Trade Register J23/835/2018.

   The share capital of the parent company is RON 2,869,750 divided into 28,697,499 common, registered shares, the nominal value of a share is RON 0.1. The shares of the parent company are traded on the Bucharest Stock Exchange (BVB) standard category, symbol PPL.

   The party that holds ultimate control of the Group is Pogonaru Florin-Ion.

   The main activities of the Parent Company and its subsidiaries (the "Group") are: processing of bioplastics; distribution of biodegradable products; production of paper packaging and recycling of plastic materials.

   The details of the Parent Company's investments in consolidated subsidiaries as of December 31, 2025 and December 31, 2024 are as

   follows:

   Subsidiary	Activity	Unique registration code	Registered office	No. shares	Nominal value per share	Share capital value	Percentage of ownership and voting rights (%)
   Biodeck SA	Distribution of biodegradable products	37918297	Bucharest	10,000	20	200,000	70.00%
   Promateris Packaging SA	Paper packaging production	43730157	Buftea	501	1,000	501,000	96.01%
   Promateris Recycling SA	Recycling of plastics	43730114	Buftea	101	1,000	101,000	80.20%
   TOTAL						802,000

2. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

   1. Declaration of conformity

      The annual consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards ("IFRS") as adopted by the European Union ("IFRS") and in accordance with the provisions of the Order of the Minister of Public Finance no. 2844/2016, for the approval of the Accounting Regulations in accordance with the International Financial Reporting Standards, applicable to commercial companies whose securities are admitted to trading on a regulated market, with subsequent amendments and clarifications, as well as in accordance with law 82/1991 with subsequent amendments and completions. These provisions correspond to the requirements of the International Financial Reporting Standards, adopted by the European Union.

   2. Basis for preparing consolidated financial statements

      The annual consolidated financial statements have been prepared on a historical cost basis, except for the revaluation of certain properties and financial instruments which are measured at revalued amounts or fair values at the end of each reporting period, as explained in the accounting policies below. Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.

      2. BASIS OF PREPARATION OF FINANCIAL STATEMENTS (continued)

   3. Functional and presentation currency

      These annual consolidated financial statements are presented in Lei (RON), which is also the functional currency of all companies within the Group. All financial information is presented in Lei, rounded, without decimals.

      Foreign currency transactions are recorded in the functional currency using the exchange rate at the date of the transactions. Monetary assets and liabilities in foreign currencies outstanding at the date of the consolidated financial statements are converted into RON using the exchange rates reported by the National Bank of Romania at the date of the closing balance. Gains or losses resulting from the settlement of transactions and from the translation of monetary assets and liabilities denominated in foreign currencies are recognized in the current year's results.

      The exchange rates of the main currencies were as follows:

      	December 31, 2025	December 31, 2024
      EUR	5.0985	4.9741
      USD	4.3417	4.7768

   4. Comparative amounts and changes in the presentation of the consolidated statement of financial position and the consolidated statement of comprehensive income

      BALANCE SHEET, lei	December 31, 2024 (reported as of December 31, 2024)	Increases/decreases	Note	31 December 2024 (retreated on December 31, 2025)
      Tangible fixed assets*	119,565,046	(7,742,529)	4.1	111,822,517
      Real estate investments*	0	7,742,529	4.1	7,742,529
      Indicator (RON)	December 31, 2024 (reported as of December 31, 2024)	Increases/decreases	Note	31 December 2024 (retreated on December 31, 2025)
      Other operating income*	2,239,619	(1,913,740)	17	325,879
      Profit/(loss) from the disposal of tangible assets*	0	694,466	17	694,466
      Expenses for adjustments for depreciation and amortization*	(14,493,163)	1,219,274	18	(13,273,889)

   5. Application of new and revised international financial reporting standards New standards, interpretations and amendments adopted as of January 1, 2025

The following amendments are applicable for the period beginning on 1 January 2025:

1. Lack of convertibility (Amendment to IAS 21 The Effects of Changes in Foreign Exchange Rates)

   On August 15, 2023, the IASB issued the Non-Convertibility Amendment, which amends IAS 21 The Effects of Changes in Foreign Exchange Rates (the "Amendments"). The Amendments introduce requirements for assessing when a currency is convertible into another currency and when it is not. The Amendments also require an entity to estimate the spot exchange rate when it concludes that a currency is not convertible into another currency.

   These amendments had no impact on the consolidated financial statements. of the Group.

2. Illustrative examples of reporting uncertainties in financial statements

On 28 November 2025, the IASB issued the document "Disclosure of Uncertainty in Financial Statements - Illustrative Examples", which amends several IFRS accounting standards by including illustrative examples that demonstrate how entities can apply IFRS standards

when reporting the effects of uncertainties in their financial statements. The illustrative examples are accompanying material to IFRS accounting standards and do not have an effective date. The IASB has issued a near-final version of the

2. BASIS OF PREPARATION OF FINANCIAL STATEMENTS (continued)

the draft illustrative examples in July 2025. The Group considered these illustrative examples in the process of preparing the consolidated financial statements and did not consider it necessary to provide additional information or make changes to the presentation.

The illustrative examples were issued during 2025, without an application date.

There are a number of standards, amendments to standards and interpretations issued by the IASB that will be applicable in future reporting periods and which the Group has decided not to adopt early.

The following amendments are applicable for annual reporting periods beginning on or after 1 January 2026:

1. Amendments to the classification and measurement of financial instruments (Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures)

   These amendments clarify and improve the rules on the classification and measurement of financial instruments, ensuring a more consistent application of the principles of IFRS 9 and IFRS 7. The main changes include:

   • Clarification of the criteria for classifying financial assets based on the business model and cash flow characteristics.

   • Improvements to the recognition and measurement of financial liabilities, including aspects related to changes in contractual terms.

   • New disclosure requirements for entities using complex financial instruments, with the aim of increasing the transparency and comparability of financial reporting.

2. Contracts referring to electricity dependent on natural factors (Amendments to IFRS 9 and IFRS 7)

   These amendments clarify the accounting treatment applicable to electricity purchase contracts where the supply depends on natural factors such as wind, solar or hydroelectric power.

   • Clarification of the applicability of IFRS 9 in determining when electricity purchase contracts should be accounted for as financial instruments or as executory contracts.

   • Changes to the disclosure requirements of IFRS 7, in order to improve transparency regarding the risks associated with these contracts and their impact on the financial statements.

   • Impact on revenue recognition and financial risk assessment, especially for entities entering into long-term contracts for renewable energy.

The following standards and amendments are applicable for the annual reporting period beginning on or after January 1, 2027:

1. IFRS 18 Presentation and disclosures in financial statements

   IFRS 18 Presentation and Disclosures in Financial Statements, issued by the IASB in April 2024, replaces IAS 1 and will result in significant consequential amendments to IFRS accounting standards, including IAS 8 Basis of Preparation of Financial Statements (renamed from Accounting Policies, Changes in Accounting Estimates and Errors). Although IFRS 18 will not have any impact on the recognition and measurement of items in consolidated financial statements, it is expected to have a significant effect on the presentation and disclosure of certain items. These amendments include categories and subtotals in the statement of comprehensive income, aggregation/disaggregation and labeling of information, and the presentation of performance measures defined by management.

2. IFRS 19 Non-public Subsidiaries: Disclosures

   Published by the IASB in May 2024, IFRS 19 introduces a simplified reporting framework for subsidiaries that do not have public accountability obligations but apply IFRS in their financial reporting. This standard reduces the disclosure requirements for such entities, while maintaining the transparency and comparability of financial information. The main benefit of IFRS 19 is to reduce administrative

   and reporting costs, without compromising the usefulness of financial statements for users. Applicable for annual reporting periods beginning on or after 1 January 2027.

   The Group is currently assessing the impact of applying these new accounting standards and amendments.

3. SIGNIFICANT ACCOUNTING POLICIES

   1. Business continuity

      Management has, at the time of approval of the consolidated financial statements, a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. In making this assessment, management has taken into account the Group's access to future financing through existing loan agreements, as well as the Group's potential to obtain the necessary financing from its shareholders. Accordingly, it continues to adopt the going concern basis of accounting for the consolidated financial statements.

   2. The basics of consolidation

      The annual consolidated financial statements comprise the financial statements of the Parent Company and the subsidiaries (together forming the Promateris Group) as of December 31, 2025, as well as the comparative information for the previous financial year ended December 31, 2024.

      1. Subsidiaries

         Subsidiaries are entities controlled by the Group. The Group controls an entity if it is exposed or has rights to variable returns from its involvement with the entity and has the ability to use its power over the entity to affect those returns. Subsidiaries are included in the scope of consolidation from the date control commences until the date control ceases.

      2. Loss of control

         When control is lost, the Group derecognises the assets and liabilities of the subsidiary, non-controlling interests and other components of equity related to the subsidiary. Any surplus or deficit resulting from the loss of control is recognised in the statement of profit or loss. If the Group retains interests in the former subsidiary, then those interests are measured at fair value at the time control is lost. Subsequently, that retained interest is accounted for as an investment using the equity method or as an available-for-sale financial asset, depending on the level of influence retained.

      3. Non-controlling interests

         The Group measures non-controlling interests in a subsidiary at the amount of its share of the subsidiary's net assets. Changes in the Group's interests in a subsidiary that do not result in the loss of control are accounted for as transactions with shareholders. Adjustments to non-controlling interests are based on the share of the subsidiary's net assets.

      4. Transactions eliminated on consolidation

      Intra-Group balances and transactions, as well as any unrealized income or expenses resulting from intra-Group transactions, are eliminated in preparing the consolidated annual financial statements. Unrealized profits on transactions with associates accounted for using the equity method are eliminated against the investment, to the extent of the Group's interest in the associate. Unrealized losses are eliminated in the same way as unrealized gains, but only to the extent that there is no indication of impairment.

   3. Intangible assets

Separately acquired intangible assets are initially recorded at acquisition or production cost (in-house). After initial recognition, intangible assets are carried at cost less accumulated amortization and impairment loss, if any.

Amortization is calculated on a straight-line basis over the estimated useful life of the intangible asset, which is between 3 and 5 years. Most of the intangible assets recorded are computer programs and licenses.

Costs related to the maintenance of computer programs are recognized as expenses in the period in which they are incurred.

1. SIGNIFICANT ACCOUNTING POLICIES (continued)

   An intangible asset is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Gains or losses arising from the derecognition of an intangible asset are calculated as the difference between the net disposal proceeds and their carrying amount and are recognized in the income statement when the asset is derecognized.

   1. Tangible assets

      Land and buildings held for use in the production or supply of goods or services, or for administrative purposes, are presented in the statement of financial position at their revalued amounts. At the date of revaluation, land and buildings are treated as follows: the carrying amount is adjusted in a manner that is consistent with the revaluation of the asset's carrying amount. Revaluations are performed with sufficient regularity so that the carrying amount does not differ materially from that which would be determined using fair values at the reporting date. The last revaluation of land and buildings took place on 31 December 2025.

      Any revaluation increase resulting from the revaluation of such land and buildings is credited to the revaluation reserve for tangible fixed assets, unless it reverses a revaluation decrease for the same asset previously recognized as an expense, in which case the increase is credited to profit or loss to the extent of the decrease in the previous expense. A decrease in the carrying amount resulting from the revaluation of such land and buildings is accounted for as an expense to the extent that it exceeds the balance, as applicable, in the revaluation reserve relating to a previous revaluation of the asset.

      Depreciation of revalued buildings is recognized in profit or loss. As the property, plant and equipment is used, the revaluation reserve is transferred to retained earnings. Upon sale or disposal of a revalued property, the attributable revaluation surplus remaining in the property revaluation reserve is transferred directly to retained earnings.

      Tangible assets in progress are recorded at cost, less any recognised impairment loss. Cost includes professional fees and, for eligible assets, borrowing costs capitalised in accordance with the Group's accounting policy. Depreciation of these assets, determined on the same basis as other fixed assets, commences when they are available for use, i.e. when they are in the location and condition necessary for them to be capable of operating in the manner intended by management .

      No depreciation is calculated for owned land.

      Plant, machinery and equipment are recorded at cost less accumulated depreciation and accumulated impairment losses.

      Depreciation is recorded in accordance with International Financial Reporting Standards (IFRS) to reflect the acquisition cost or fair value of assets (except land and buildings under construction) less their residual values, over their useful lives. This process is carried out by applying the straight-line depreciation method, according to the useful lives established by the Group's management:

      • technological equipment 8 - 12 years

      • measuring, control and regulation devices and installations 4 - 12 years

      • means of transport 5 - 10 years

      • computer science 3 years

      • furniture and work equipment 4 - 12 years

      • construction 24 years

      The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.

      The net carrying amount of an item of property, plant and equipment is derecognized upon disposal or when no future benefits are expected from its use or disposal. The revaluation surplus included in equity relating to an item of property, plant and equipment is transferred directly to retained earnings when the asset is derecognized, upon disposal or scrapping. The gain or loss resulting from the derecognition of a property, plant and equipment is included in profit or loss when the asset is derecognized.

      In the tangible assets category, the company also records advances paid to suppliers for the acquisition of tangible assets. The company has opted to record advances granted to suppliers for tangible assets at cost and classify them as long-term, because their settlement generates the recognition of fixed assets. Advances paid to suppliers are recorded at the time of payment in accordance with the contractual conditions and are derecognized at the time of receipt of the assets and their registration in the tangible assets category.

      3. SIGNIFICANT ACCOUNTING POLICIES (continued)

   2. Real estate investments

      According to IAS 40, an investment property is property (land or buildings) held to earn rentals or to earn capital appreciation, or both, and which is not used in the production or supply of goods or services, or for administrative purposes. This category also includes property for which there is no defined purpose of use within the entity at the date of the financial statements.

      To evaluate real estate investments, the entity may opt for one of the following methods:

      • Cost Method - real estate investments are valued at acquisition cost less accumulated depreciation and any impairment losses.

      • Fair Value Method - investment properties are valued at market value (fair value) at each reporting date, without applying depreciation. The Group has opted for this method.

      In accordance with IAS 40, the Group will measure investment property using fair value. Fair value measurement is based on a periodic assessment of the real estate market, using accepted valuation techniques, including analysis of recent sales transactions and valuations performed by authorized valuers. Any change in the fair value of an investment property will be recognized in the profit and loss account.

   3. Investments in capital instruments.

      This category includes the participations held by the company in entities within the group, as well as the participations held in entities outside the group perimeter.

      The equity securities held in the entities within the group represent unlisted shares, for which there is no active market and for which the fair value cannot be reliably determined. Consequently, in the individual financial statements, these securities are valued at cost, less any adjustments for impairment. The Company performs impairment tests periodically, in accordance with IAS 36, and any impairment loss identified is recognized in the profit or loss account.

      Participations held in entities outside the group are classified as financial assets measured at fair value through profit or loss, in accordance with IFRS 9. Changes in fair value, as well as related dividends, are recognized in the profit or loss account of the period in which they arise. For participations in entities whose shares are not quoted on an active market, fair value is determined based on appropriate valuation techniques, using, to the extent possible, observable market data.

   4. Other long-term fixed assets

      This category includes cash guarantees established with suppliers, with a recovery term greater than 12 months from the reporting date, classified according to IFRS 9 as financial assets measured at amortized cost.

   5. Stocks

      Inventories are stated at the lower of cost and net realizable value. Cost comprises direct materials at cost and, where applicable, direct labor costs and those costs incurred in bringing the inventories to their present location and condition. Cost is calculated using the weighted average cost (WAC) method. Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and costs to be incurred for marketing, selling and distribution.

      The establishment and reversal of adjustments for inventory depreciation are made on the profit and loss account.

   6. Financial instruments

Financial assets and liabilities are recognized in the Group's consolidated statement of financial position when the Group becomes a party to the contractual provisions of the instrument.

3. SIGNIFICANT ACCOUNTING POLICIES (continued)

1. Financial instruments (continued)

   Financial assets and liabilities are initially measured at fair value, except for trade receivables that do not have a significant financing component and are measured at the transaction price. Transaction costs that are directly attributable to the acquisition or issuance of financial assets and liabilities (other than financial assets and liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or liabilities, as appropriate, upon initial recognition. Transaction costs directly attributable to the acquisition of financial assets or liabilities at fair value through profit or loss are recognized in current profit or loss.

   Financial assets

   Financial assets are initially measured at fair value and subsequently at amortized cost because they are held within a business model to collect contractual cash flows and these cash flows consist exclusively of payments of principal and interest on the outstanding principal.

   Gains or losses from exchange rate differences

   The carrying amount of financial assets denominated in a foreign currency is determined in that foreign currency and converted at the spot rate at the end of each reporting period.

   Loans and receivables

   These assets are initially recognized at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, they are measured at amortized cost using the effective interest method. Amortized cost is reduced by adjustments for impairment. Loans and receivables include trade and other receivables, cash and cash equivalents and bank deposits.

   Trade and other receivables

   Receivables are initially recognized at the transaction value as defined in IFRS 15. The Group does not have trade receivables that contain a significant financing component . Trade receivables mainly include outstanding invoices issued up to the reporting date for the delivery of goods and services. Subsequent to initial recognition, trade receivables are measured at amortized cost in accordance with IFRS 9.

   Cash and cash equivalents

   Cash and cash equivalents include balances of cash, demand deposits and deposits with maturity of up to three months from the date of establishment that have an insignificant exposure to the risk of changes in fair value, being used by the Group for the management of short-term commitments.

   Impairment of financial assets

   The Group recognizes an impairment adjustment for expected credit losses related to investments in financial assets measured at amortized cost, trade receivables and other receivables. The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since the initial recognition of the financial instrument.

   The Group recognizes lifetime expected credit losses for trade and other receivables. Expected credit losses for these financial assets are estimated for financial assets for which there are indications of non-collection. The Group considers that default has occurred when a financial asset is more than 360 days past due. The Group's management considers this policy appropriate, taking into account that the exposure related to financial assets past due for more than 90 days is low, and does not have a significant impact on the annual consolidated financial statements.

   EXPLANATORY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

   3. SIGNIFICANT ACCOUNTING POLICIES (continued)

   Derecognition of financial assets

   The Group derecognises a financial asset only when the contractual rights to the cash flows from the asset expire or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If the Group neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the Group recognises its retained interest in the asset and an associated liability for the amounts it may pay. If the Group retains substantially all the risks and rewards of ownership of a transferred financial asset, the Group continues to recognise the financial asset and also recognises a secured loan for the amounts received.

   Financial liabilities and share capital

   Financial instruments are classified as liabilities or equity in accordance with the substance of the contractual arrangement and the definition of financial liabilities and equity instruments.

   Financial liabilities include lease obligations, interest-bearing bank loans, overdrafts, trade payables and other liabilities. For each item, the accounting policies for recognition and measurement are disclosed in this note. Management believes that the estimated fair values of these instruments approximate their carrying amounts.

   Borrowings are initially recognized at fair value. Subsequently, they are measured at amortized cost, using the effective interest rate method. Any difference between the initial amount and the redemption amount is recognized in the income statement over the period of the borrowings, using the effective interest method.

   Interest, dividends, gains and losses on a financial instrument classified as a liability are reported as expense or income. Distributions to holders of financial instruments classified as equity are recorded directly in equity. Financial instruments are offset when the Company has a legally enforceable right to offset and intends to settle either on a net basis or to realize the asset and settle the liability simultaneously.

   Trade debts

   Trade payables are obligations to pay for goods or services that have been purchased in the normal course of business from suppliers and are recorded at amortized cost. If goods and services provided in connection with current activities have not been invoiced, but if delivery has been made and their value is available, the respective obligation is recorded as a liability.

   Liabilities generated by foreign currency transactions are valued in RON based on the exchange rate on the date of the transactions. Monthly, outstanding foreign currency liabilities are converted into lei using the exchange rate communicated by the National Bank of Romania valid at the end of the month.

   Share capital

   Ordinary shares

   Ordinary shares are classified in equity. Incremental costs directly attributable to the issue of ordinary shares, net of any tax effects, are recognized as a reduction in equity.

   Derecognition of financial liabilities

   The Group derecognises financial liabilities only when the contractual obligations are discharged, cancelled or have expired. The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable is recognised in profit or loss.

2. Revaluation reserve

The difference between the revalued value and the net book value of land and buildings is recognized as a revaluation reserve in equity.

1. SIGNIFICANT ACCOUNTING POLICIES (continued)

   If the carrying amount of an asset is increased as a result of a revaluation, this increase is recorded and accumulated in equity under revaluation reserves. However, the increase is recognized in the statement of profit or loss to the extent that it offsets a decrease of the same amount of the asset, previously recognized in the statement of profit or loss.

   If the carrying amount of an asset is reduced as a result of a revaluation, this reduction is recognised in profit or loss. However, the reduction is recognised in equity in the revaluation reserve if there is a credit balance in the revaluation reserve for that asset. The revaluation reserve is transferred to retained earnings in an amount corresponding to the use of the asset (as amortisation) and on disposal of the asset.

   1. Other reservations

      The Group allocates an amount equal to at least 5% of the profit before tax to other reserves, which are represented by legal reserves. The legal reserve established until it reaches 20% of the share capital is deductible when calculating the profit tax. If this reserve is used in whole or in part to cover losses or for distribution in any form (for the issuance of new shares), the reserve becomes taxable.

   2. Dividends

      The amounts representing dividends distributed from the net profit of the reporting period are highlighted in the following year in the retained earnings, following the approval of this destination by the General Meeting of Shareholders.

      The distribution of dividends is recognized as a liability in the company's financial statements in the period in which the dividends are approved by the company's shareholders.

   3. Provisions

      Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that the Group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

      As of December 31, 2025, the Group has no provisions recorded.

   4. Investment subsidies

      The Group recognizes government grants only when there is reasonable assurance that the contractual conditions are met and that they will be received.

      Government grants are recognised in profit or loss on a systematic basis over the periods in which the Group recognises as expenses the related costs for which the grants are intended to compensate them. Specifically, government grants whose main condition is that the Group acquires or constructs fixed assets are recognised as deferred income in the consolidated statement of financial position and transferred to profit or loss on a systematic and rational basis over the useful lives of the related assets.

      Government grants that are receivable as compensation for expenses or losses already incurred or for the purpose of providing immediate financial support to the Group, without related future costs, are recognized in profit or loss in the period in which they become receivable.

   5. Leasing

      (i) The group as tenant

      At inception of a lease, the Group determines whether the lease is or contains a lease. The Group recognises a right-of-use asset and a corresponding lease liability for all leases in which the Group is a lessee, with

      EXPLANATORY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

      3. SIGNIFICANT ACCOUNTING POLICIES (continued)

      except for short-term leases (with a term of 12 months or less) and for leases where the asset value is lower (below USD 5,000). For these leases, the Group recognizes lease payments as an operating expense, using a straight-line basis over the lease term.

      The liability arising from the lease contract is initially measured at the present value of the lease payments not yet paid, using the interest rate implicit in the lease. If this rate cannot be readily determined, the Group must use the incremental borrowing rate.

      The liabilities arising from lease contracts are presented separately in the consolidated statement of financial position. The liability arising from the lease contract is subsequently measured by increasing the carrying amount to reflect the interest on the liability arising from the lease contract (using the effective interest rate) and by decreasing the carrying amount to reflect the lease payments made.

      Right-of-use assets are depreciated over the shorter of the lease term and the useful life of the underlying asset. If the lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects the Group exercising a purchase option, the right-of-use asset is depreciated over the useful life of the underlying asset. Depreciation begins at the inception of the lease. Right-of-use assets are presented as a separate line item in the consolidated statement of financial position.

   6. Revenue recognition

      The Group recognizes revenue primarily from the sale of finished products and merchandise (biodegradable products). Revenue is recognized based on the consideration to which the Group expects to be entitled under a contract with a customer and excludes amounts collected on behalf of third parties. The Group recognizes revenue when it transfers control of a product or service to a customer.

      The Group produces and sells a range of biodegradable and compostable materials, mainly biodegradable bags and sacks, as well as

      technical and specialty compounds. The products are sold to the Business-to-Business segment.

      Sales are recognized when control of the products has been transferred, which is when the products are delivered to the customer. Thereafter, the customer has full discretion over how the purchased products are used and, where applicable, the resale price of the products. Delivery occurs when the products have been shipped to the specified location, the risks of loss have been transferred to the customer and either the customer has accepted the products in accordance with the sales contract, the acceptance provisions have expired, or the group has objective evidence that all acceptance criteria have been met. A receivable is recognized when the goods are delivered, which is when the consideration is unconditional, as only the passage of time before payment is due is required.

      The consideration promised in customer contracts is adjusted by the value of commercial and financial discounts, incentives, performance bonuses, penalties or other similar elements.

      In accordance with the Group's standard contractual terms, no return rights are granted, except in exceptional cases where the products do not meet the quality conditions assumed in the contract.

   7. Employee benefits

      Short-term employee benefits are measured on an undiscounted basis and are recognized as an expense as the related services are rendered. A liability is recognized at the amount expected to be paid if the Group has a present legal or constructive obligation to pay this amount for past service provided by the employee, and the obligation can be estimated reliably.

      The Group is not involved in any independent pension scheme and, consequently, has no obligations in this regard. The Group does not currently provide any employee profit-sharing benefits. The Group does not provide any severance pay upon retirement.

      EXPLANATORY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

      1. SIGNIFICANT ACCOUNTING POLICIES (continued)

   8. Income tax

      Income tax expense comprises current tax and deferred tax. Income tax expense is recognized in profit or loss except when it relates to business combinations or items recognized directly in equity or other comprehensive income.

      Current income tax

      The current tax payment is based on the taxable profit for the year. Fiscal profit is different from the profit reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and also excludes items that will never become taxable or deductible.

      The companies record current income tax in accordance with Romanian legislation in force at the date of the financial statements. The current tax rate is 16%.

      Deferred tax

      Deferred tax is established using the balance sheet method for temporary differences of assets and liabilities (differences between the carrying amounts presented in the company's balance sheet and its tax base). The Group has recognized a deferred tax liability related to the revaluation reserve.

   9. Financial income and expenses

      The Group's financial income and expenses include:

      • interest income;

      • interest expenses;

      • gains or losses from exchange rate differences on financial assets and liabilities;

      • impairment losses on financial assets (other than trade receivables).

      Interest income or expense is recognized by applying the effective interest method.

   10. Segment reporting

The Group has analyzed its operational activity and determined that it operates a single segment of activities, namely, the production and sale of finished products and merchandise through the Business-to-Business channel. The Group records sales to customers in Romania and in countries in Central and Southern Europe (France, Greece, Spain, Ukraine, Italy, Poland, Sweden, Hungary), resulting in a close ratio between sales in Romania (49%) and all other countries combined (51%). The Group does not hold fixed assets in countries other than Romania.

1. USE OF PROFESSIONAL ESTIMATES AND JUDGEMENTS

   The preparation of consolidated financial statements in accordance with IFRS as adopted by the European Union requires the Group's management to make estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities. The estimates and associated judgments are based on historical data and other factors considered to be reasonable in the circumstances, and the results of these factors form the basis of the judgments used in determining the carrying amounts of assets and liabilities for which no other sources of valuation are available. Actual results may differ from the estimated amounts.

   Estimates and judgments are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised, if the revision affects only that period, or in the current period and future periods, if the revision affects both the current period and future periods.

   Estimates and assumptions are used, in particular, in:

   EXPLANATORY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

   1. USE OF PROFESSIONAL ESTIMATES AND JUDGEMENTS (Continued)

      • determining and reviewing the useful life of the group's fixed assets;

      • determining inventory depreciation adjustments. The group's management makes certain estimates regarding the useful life of the inventory, taking into account the possibility of use in the group's current activity and other factors specific to each category of inventory.

      • determining impairment adjustments for receivables

      • Fair value measurement: Fair value is the price that could be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Group measures the fair value of an asset or liability based on the assumptions that market participants would use when pricing the asset or liability, assuming that they are acting to maximize economic benefits.

      The Group uses valuation techniques that are appropriate in the given circumstances and for which sufficient information is available to perform the fair value measurement, maximizing the use of relevant available information and minimizing the use of data that is not available. All assets and liabilities that are measured at fair value in the financial statements must be classified within the fair value hierarchy, based on the nature of the inputs as follows:

      • Level 1 - quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date;

      • Level 2 - inputs, other than quoted market prices included in level 1, that are observable for the asset or liability, either directly or indirectly;

      • Level 3 - unobservable inputs for the asset or liability.

      At each reporting date, the group's management analyzes the values of assets and liabilities that require revaluation or restatement of fair value in accordance with the accounting policies applied. The carrying amount of the company's main assets and liabilities (cash, trade and other receivables, trade and other current liabilities) approximates their fair value at the reporting date.

      The group's management believes that any differences from these estimates will not have a significant influence on the consolidated financial statements in the near future.

      EXPLANATORY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

   2. FIXED ASSETS

      1. Tangible assets

   strengthen	Lands	construction	Installations, machines, equipment	Tangible assets in progress	Rights of use of leased car assets	Rights of use of building assets leasing	Advances for fixed assets	Total tangible assets
   Cost
   Balance as of 01.01.2025	18,490,524	26,721,099	111,256,025	2,719,640	1,527,611	2,382,295	1,643,735	164,740,930
   Acquisitions of tangible assets	-	-	949,938	13,995,336	-	-	1,773,430	16,718,704
   Transfers	(6,695,835)	-	13,371,582	(13,253,818)	(754,830)	-	-	(7,332,901)
   Disposals of tangible assets	(1,735,058)	-	(679,962)	-	-	-	(2,776,070)	(5,191,090)
   Revaluation	2,375,611	2,114,708	-	-	-	-	-	4,490,319
   Balance as of 31.12.2025	12,435,242	28,835,807	124,897,583	3,461,159	772,781	2,382,295	641,095	173,425,961
   Accumulated depreciation
   Balance as of 01.01.2025	-	6,688,171	44,351,542	-	1,018,540	833,803	-	52,892,056
   Depreciation for the year	-	1,889,537	13,159,076	-	167,068	476,459	-	15,692,140
   Disposals	-	-	324,575	-	(652,129)	-	-	(327,554)
   Reduction of depreciation adjustments	-	(2,150)	(23)	-	-	-	-	(2,173)
   Balance as of 31.12.2025	-	8,575,558	57,835,170	-	533,479	1,310,262	-	68,254,469
   Net book value as of 31.12.2025	12,435,242	20,260,249	67,062,413	3,461,159	239,302	1,072,033	641,095	105,171,492

   The loss from the disposal of tangible assets was realized due to the expropriation by the Expropriator: the Romanian State through the Ministry of Transport and Infrastructure / CNAIR SA based on: Expropriation Decisions: no. 873/10.05.2021 (HG 37/2021 + rectifications) and no. 181/21.02.2025 (HG 1630/2024) for the Project: "Bucharest Ring Road", North Ring Road Sector km 0+000 - km 52+770 Land located in Buftea, Ilfov, Sos. București-Targoviste no. 1, T46, P394/394/2. The expropriated area is 7,672 sq m for which compensation was established in the amount of 442,412 lei. On 31.12.2025, the land from which the 7,672 sq m were expropriated was valued at fair value in the amount of 1,735,058 lei. The revaluation reserve related to this asset was transferred to retained earnings, representing the surplus realized from revaluation reserves.

   EXPLANATORY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

   1. FIXED ASSETS

      1. Tangible assets

   strengthen	Lands	construction	Installations, machines, equipment	Tangible assets in progress	Rights of use of leased car assets	Rights of use of building assets leasing	Advances for fixed assets	Total tangible assets
   Cost
   Balance as of January 1, 2024	26,206,696	26,721,099	109,195,145	2,504,812	1,471,635	2,382,295	1,595,122	170,076,804
   Acquisitions of tangible assets	-	-	1,473,550	3,797,583	55,976	-	1,104,575	6,431,684
   Transfers	(7,716,172)	-	3,582,755	(3,582,755)	-	-	-	(7,716,172)
   Disposals of tangible assets	-	-	(2,995,424)	-	-	-	(1,055,962)	(4,051,386)
   Revaluation	-	-	-	-	-	-	-	-
   Balance as of December 31, 2024	18,490,524	26,721,099	111,256,026	2,719,640	1,527,611	2,382,295	1,643,735	164,740,930
   Accumulated depreciation
   Balance as of January 1, 2024	-	5,428,970	33,869,199	-	853,804	357,344	-	40,509,317
   Depreciation for the year	-	1,261,351	12,391,495	-	164,736	476,459	-	14,294,041
   Disposals	-	-	(1,908,633)	-	-	-	-	(1,908,633)
   Reduction of depreciation adjustments	-	(2,150)	(519)	-	-	-	-	(2,669)
   Balance as of December 31, 2024	-	6,688,171	44,351,542	-	1,018,540	833,803	-	52,892,056
   Net book value as of December 31, 2024	18,490,524	20,032,928	66,904,484	2,719,640	509,071	1,548,492	1,643,735	111,848,874

   EXPLANATORY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

2. FIXED ASSETS (continued )

   1. Tangible assets (continued)

Tangible assets put into operation during 2025 and 2024 represent production equipment. The value of assets pledged in favor of banks under loan agreements is presented in note 12.

Tangible fixed assets include assets acquired through non-refundable subsidies and used in current activity. These are presented in note 14.

The Group's tangible fixed assets, represented by land and buildings, are presented in the financial statements at revalued value, which represents the fair value at the valuation date, less accumulated depreciation and subsequent impairment adjustments.

The fair value assessment of the Group's land and buildings as of 31 December 2025 was carried out by TNP Global & Partners, an independent certified valuer of the Group. TNP Global & Partners is a member of the National Association of Certified Valuers of Romania and has appropriate qualifications and recent experience in assessing the fair value of properties in the relevant locations. The assessment was carried out in accordance with International Valuation Standards. The fair value of the land was determined using the direct comparison method, and the fair value of the buildings was determined using the income approach.

The following table presents the valuation methods used to determine fair values (Level 3), as well as the significant unobservable inputs used.

1. FIXED ASSETS (continued )

   1. Tangible assets (continued)

      Information regarding the fair value hierarchy as of December 31, 2025 and December 31, 2024:

      	Level 1	Level 2	Level 3	Fair value at December 31 2025
      Land and land developments (including real estate investments)	-	-	27,197,597	27,197,597
      Constructions	-	-	20,241,045	20,241,045

      	Level 1	Level 2	Level 3	Fair value at December 31 2024
      Land and land developments	-	-	26,206,696	26,206,696
      Constructions	-	-	21,256,466	21,256,466

      Both during 2025 and during 2024 there were no transfers between fair value levels.

      The net carrying amount at historical cost of tangible assets measured at fair value is presented in the table below:

      	Historical cost value at December 31, 2025	Historical cost value at December 31, 2024
      Land	12,685,915	13,174,674
      Constructions	18,116,950	18,116,950
      TOTAL	30,802,865	31,291,624

      1. Revenue from the production of tangible assets

         	December 31, 2025	December 31, 2024
         Revenue from the production of tangible assets	978,585	180,649

         1. Profit/(loss) from the disposal of tangible assets

            	December 31, 2025	December 31, 2024
            Profit/(loss) from the disposal of tangible assets	(1,275,856)	694,446

            The loss from the disposal of tangible assets was realized due to the expropriation by the Expropriator: the Romanian State through the Ministry of Transport and Infrastructure / CNAIR SA based on: Expropriation Decisions: no. 873/10.05.2021 (HG 37/2021 + rectifications) and no. 181/21.02.2025 (HG 1630/2024) for the Project: "Bucharest Ring Road", North Ring Road Sector km 0+000 - km 52+770 Land located in Buftea, Ilfov, Sos. București-Targoviste no. 1, T46, P394/394/2. The expropriated area is 7,672 sq m for which compensation was established in the amount of 442,412 lei. On 31.12.2025, the land from which the 7,672 sq m were expropriated was valued at fair value in the amount of 1,735,058 lei. The revaluation reserve related to this asset was transferred to retained earnings, representing the surplus realized from revaluation reserves.

         2. Real estate investments

         Real estate investments (Land)
         Cost	7,716,172
         Balance as of January 1, 2025	-
         Acquisitions	6,695,835
         Transfers	-
         Dosposals	350,348
         Revaluation

         Balance as of December 31, 2025

         14,762,355

      2. Real estate investments (Continued)

      Cost	Real estate investments (Land) -
      Balance as of January 1, 2024	-
      Acquisitions	7,716,172
      Transfers	-
      Dosposals	-
      Revaluation
      Balance as of December 31, 2024	7,716,172

      On 31.12.2025 Promateris reclassified from the Land category to the Investment property category, in accordance with IAS 40 "Investment property", part of the land owned by the Company, namely the land owned in Crevedia, Lot 1, Lot 2 and Lot 3 (119,808 m2). For these lands, management does not have a defined plan as of the date of these financial statements. Investment property is valued at fair value, the related revaluation difference accumulated until 31.12.2025 will remain presented in the revaluation reserve account. The lands owned by the Company are: Belciugatele (91,242 m2), Buftea (27,404 m2 following expropriation) and Crevedia (3 lands totaling 119,808 m2).

      5.2.a) Real estate investments

      Elements	December 31, 2025	December 31, 2024
      Gains from fair value adjustment - Belciugatele Land (91,242 sq m)	350,348	-
      Total income from fair value measurement of investment property	350,348	-

      As a result of the valuation on 31.12.2025 of the real estate investment Belciugatele Land (91,242 m2m) in the financial year ended 31.12.2025, the Company recognized in the profit or loss account net gains from the adjustment to the fair value of real estate investments in the amount of 350,348 lei, in accordance with IAS 40 "Investment Property" and with the Company's accounting policy for valuing real estate investments at fair value after initial recognition. The fair value was determined based on a valuation report prepared by an independent authorized ANEVAR appraiser, using valuation techniques in accordance with IFRS 13 "Fair Value Measurement".

      5.3 Intangible assets
      	Total tangible assets
      Cost
      Balance as of 01.01.2025	2,253,454
      Acquisitions of intangible assets	653,533
      Disposals of tangible assets	(34,991)
      Balance as of 31.12.2025	2,871,996
      Accumulated depreciation
      Balance as of 01.01.2025	710,592
      Depreciation for the year	246,253
      Disposals	(34,991)
      Balance as of 31.12.2025	921,854
      Net book value as of 31.12.2025	1,950,142

      5.2 Intangible assets (Continued)
      	Total tangible assets
      Cost
      Balance as of 01.01.2024		1,676,574
      Acquisitions of intangible assets		577,657
      Disposals of tangible assets		(777)
      Balance as of 31.12.2024		2,253,454
      Accumulated depreciation
      Balance as of 01.01.2024		509,578
      Depreciation for the year		201,791
      Disposals		(777)
      Balance as of 31.12.2024		710,592
      Net book value as of 31.12.2024		1,542,862

      Intangible assets include computer programs, licenses and various software. They are amortized using the straight-line method. In the statement of financial position, they are presented at historical cost, less depreciation and any value adjustments.

      5.3.a) Revenue from the production of intangible assets

      	December 31, 2025	December 31, 2024
      Revenue from the production of intangible assets	712,694	0

      5.4 Investments in equity instruments

      Investments in equity instruments as of 31.12.2025 and 31.12.2024 are detailed below.

      Investments in capital instruments	Balance as of 01.01.2025	Holding % as of 01.01.2025	Increases/decreases in CPP	Balance as of 31.12.2025	Holding % as of 31.12.2025
      Romtatay SA	1,996,173	10.00%	(749,754)	1,246,419	10.00%
      Other holdings	20,000		-		<10.00%
      Total	2,106,173		(749,754)	1,266,419

      Investments in capital instruments	Balance as of 01.01.2024	Holding % as of 01.01.2024	Increases/decreases in CPP	Balance as of 31.12.2024	Holding % as of 31.12.2024
      Romtatay SA	974,757	10.00%	1,021,416	1,996,173	10.00%
      Other holdings	20,000		-	20,000	<10.00%
      Total	994,757		1,021,416	2,016,173

      5. 4 Investments in equity instruments (Continued) Information regarding Romtatay SA

      Romtatay SA is a Romanian-Spanish joint venture producing plastic injection molded articles, founded in 1991, registered at the Trade Register Office under no. J40/2798/1992.

      As of 31.12.2025, the Group holds a 10% stake in the share capital of this company worth RON 108,203 (at acquisition cost), for which it decided at the time of reporting to measure it at fair value through current results.

      Details of the valuation report 31.12.2025: TNP Global & Partners, an authorized valuer independent of the Group. TNP Global & Partners is a member of the National Association of Authorized Valuers in Romania and has appropriate qualifications and recent experience in fair value valuation. In applying the approaches and methods for estimating the fair value of the minority stake in SC ROMTATAY SA, input data obtained from the market and from the client were used. In the income approach, forecasts provided by the client and verified by the valuer with market data and the company's financial history were used. The availability of data and the specific market situations presented in the report led to the fact that the income approach is the only relevant and appropriate for estimating the fair value of the minority stake. The fair value determined for this holding is 1,246,419 lei.

2. STOCKS

   The main categories of inventories are raw materials and consumables, finished goods and merchandise. Upon disposal, inventories are valued at weighted average cost.

   Stock category	December 31, 2025	December 31, 2024
   Raw materials and consumables	20,073,694	12,173,772
   Finished and semi-finished products	14,579,665	19,612,361
   Merchendise	4,220,700	6,297,039
   Stock category (adjustments)
   Raw materials and consumables	(127,805)	(264,270)
   Finished products	(28,158)	(86,582)
   Merchendise	(157,991)	(111,792)
   TOTAL	38,560,105	37,590,528

   The value of inventories pledged to financial institutions under loan agreements is presented in note 12.

3. RECEIVABLES

7.1. TRADE RECEIVABLES AND OTHER RECEIVABLES

1. RECEIVABLES (continued)

   1. TRADE RECEIVABLES AND OTHER RECEIVABLES (continued)

      The Group's top 4 outstanding customers held a share of 52% of total outstanding receivables as of December 31, 2025 (58% as of December 31, 2024). See the breakdown by customer in Note 17.

      The parent company has established a matrix of provisions based on the Group's historical credit loss experience, adjusted with prospective factors specific to the debtors and the economic environment, if applicable.

      The Group assesses impairment losses individually if there are indications of significant increases in credit risk at an individual level. Further

      information is provided in Note 27.

      The movement in adjustments for impairment of trade receivables is as follows:

      ADJUSTMENTS	December 31, 2025	December 31, 2024
      Opening balance on January 1	(3,195,815)	(3,264,152)
      Increases	(666,933)	131,175
      Discounts	224,188	(199,512)
      Final balance as of December 31	(3,638,560)	(3,195,815)

      The value of trade receivables pledged to financial institutions based on loan agreements are presented in note 12.

   2. OTHER SHORT-TERM ASSETS

      	December 31, 2025	December 31, 2024
      Current income tax receivables	0	76,415
      Advance expenses	432,852	522,839
      Total	432,852	599,254

2. CASH AND CASH EQUIVALENTS

The Group has current accounts in lei and foreign currency (EURO, USD) opened with BCR, BRD, ING, EximBank (formerly Banca Romaneasca), Unicredit, CEC Bank and Treasury. The balances at the end of the reporting period denominated in foreign currency were revalued at the BNR exchange rates for the last banking day of 2024, and the related exchange rate differences were recorded in the profit or loss of the year.

1. CASH AND CASH EQUIVALENTS (Continued)

   As of December 31, 2025 and December 31, 2024, the Company does not hold any cash or cash equivalents whose use is restricted. The entire balance of RON 5,795,768 as of December 31, 2025 (December 31, 2024: RON 3,797,871) is available for use in the Company's current activity.

   compound	12/31/2025	12/31/2024
   Cash available for use	5,795,768	3,797,871
   Restricted cash	0	0
   Total cash and equivalents	5,795,768	3,797,871

2. NON-CONTROLLING INTERESTS

   Summarized financial information regarding non-controlling interests is presented below. The financial information related to non-controlling interests is represented by Biodeck, Promateris Packaging and Promateris Recycling.

   Uncontrolled interests	Opening balance of non- Net profit for the period Final balance of non-controlling interests attributable to non-controlling controlling interests 31.12.2025 interests 31.12.2025 31.12.2025
   Biodeck SA	2,112,771	(27,922)	2,084,849
   Promateris Packaging SA	10,860	(769)	10,091
   Promateris Recycling SA	1,035	(8,281)	(7,246)
   TOTAL	2,124,666	(36,972)	2,087,694

   Uncontrolled interests	Opening balance of non-controlling interests 31.12.2024	Net profit for the period attributable to non-controlling interests 31.12.2024	Final balance of non-controlling interests 31.12.2024
   Biodeck SA	2,080,711	32,060	2,112,771
   Promateris Packaging SA	11,604	(744)	10,860
   Promateris Recycling SA	10,978	(9,943)	1,035
   TOTAL	2,103,293	21,373	2,124,666

3. SHARE CAPITAL

As of December 31, 2025, the subscribed and paid-up share capital of the Parent Company is worth RON 2,869,750, composed of 28,697,499 ordinary shares with a nominal value of RON 0.10/share, fully paid.

As of December 31, 2024, the subscribed and paid-up share capital of the Parent Company is worth RON 2,869,750, composed of 28,697,499 ordinary shares with a nominal value of RON 0.10/share, fully paid.

The shareholder structure as of December 31, 2025 is as follows, according to the Central Depository Register:

1. SHARE CAPITAL (Continued)

   The shareholder structure as of December 31, 2024 is as follows, according to the Central Depository Register:

   	December 31, 2024			December 31, 2024
   Shareholder	No. of Shares		%	Share capital value		%
   POGONARU FLORIN-ION	9,900,990		34.50%	990,099		34.50%
   PAVAL HOLDING SRL	6,895,502		24.03%	689,550		24.03%
   NORD SA	5,981,571		20.84%	598,157		20.84%
   SHAREHOLDERS LIST	5,919,436		20.63%	591,944		20.63%
   Total	28,697,499		100%	2,869,750		100%

2. REVALUATION RESERVES AND OTHER RESERVES

   	December 31, 2025	December 31, 2024
   Revaluation reserves	18,183,591	16,166,308
   Legal reserves	602,853	602,853
   Reserves - total	18,786,444	16,769,161

   Revaluation reserves are constituted by the revaluation of land and buildings owned by the Group. The last revaluation was carried out on December 31, 2025.

   Elements	Year 2025
   Balance as of January 1, 2025	16,166,308
   (+) Gross revaluation of tangible assets	4,490,318
   (−) Proportional restatement of accumulated depreciation (constructions only)	-628,185
   (−) Deferred tax 16% recognized in OCI	-180,711
   (=) Revaluation reserve	3,681,422
   (−) Transfer to Retained Earnings related to expropriated land (Buftea)	-1,246,164
   (−) Annual transfer to Retained Earnings - excess depreciation (IAS 16.41) for construction	-417,975
   Subtotal transfer of revaluation reserve to retained earnings	-1,664,139
   Balance as of December 31, 2025	18,183,591

3. Debts to banking institutions and other creditors

   Promateris loan balance as of 31.12.2025	Curre ncy	Equivalent balance in RON as of 31.12.2025	31.12.2025 in RON TS	31.12.2025 in RON TL	Maturity
   ING long-term loan	RON	83,333	83,333	-	27.02.2026
   ING long-term loan	RON	883,863	707,091	176,772	30.03.2027
   ING long-term loan	RON	3,916,417	2,937,313	979,104	01.04.2027
   ING long-term loan	EUR	6,090,536	2,436,214	3,654,322	06/15/2028
   ING Overdraft	RON	10,994,929	10,994,929	-	15.10.2026
   ING Overdraft	EUR	6,884,012	6,884,012	-	15.10.2026
   ING long-term loan	RON	619,665	247,866	371,799	06/15/2028
   Unicredit long-term loan	RON	257,970	257,970	-	23.02.2026
   Unicredit long-term loan	RON	96,677	96,677	-	29.04.2026
   Unicredit short-term loan	RON	294,272	294,272	-	29.04.2026
   Unicredit short-term loan	EUR	6,122,251	6,122,251	-	02.07.2026

   Unicredit short-term loan	RON	6,960,000	6,960,000	-	02.07.2026
   Unicredit short-term loan	USD	1,945,082	1,945,082	-	02.07.2026
   Unicredit long-term loan	EUR	2,007,655	446,145	1,561,510	19.06.2030
   Long-term credit CEC	RON	3,333,333	3,333,333	-	07/18/2026
   Long-term credit CEC	EUR	4,770,022	985,440	3,784,582	08/15/2028
   Shareholder loan	RON	5,000,000	5,000,000		12/31/2026
   Shareholder loan interest	RON	998,889	998,889		12/31/2025
   Banking institution interest	RON	189,756	189,756	-	12/31/2025
   Biodeck short-term credit Unicredit	EUR	14,020,875	14,020,875	-	02.07.2026
   Biodeck short-term credit Unicredit	USD	1,085,425	1,085,425	-	02.07.2026
   Interest	RON	69,004	69,004	-	02.07.2026
   TOTAL		76,623,966	66,095,877	10,528,089

   *The loan is granted by the affiliated party Floreasca Development SA, Bucharest, 20 Icoanei Street, sector 2

   Currency Equivalent balance in RON as of 31.12.2024			Short term Long term		due date
   ING long-term loan	RON	583,333	500,000	83,333	27.02.2026
   ING long-term loan	RON	1,590,957	707,092	883,865	30.03.2027
   ING long-term loan	RON	6,853,730	2,937,313	3,916,417	01.04.2027
   ING long-term loan	EUR	8,318,703	2,376,772	5,941,931	06/15/2028
   ING Overdraft	RON	8,226,061	8,226,061	-	Upon notification to the bank
   ING Overdraft	EUR	7,403,721	7,403,721	-	Upon notification to the bank
   ING long-term loan	RON	867,530	247,866	619,664	06/15/2028
   Unicredit long-term loan	RON	1,805,780	1,547,811	257,969	23.02.2026
   Unicredit long-term loan	RON	386,708	290,031	96,677	29.04.2026
   Unicredit short-term loan	RON	1,177,087	882,815	294,272	29.04.2026
   Unicredit short-term loan	EUR	5,972,873	5,972,873	-	06/15/2025
   Unicredit short-term loan	USD	2,140,006	2,140,006	-	06/15/2025
   Unicredit short-term loan	RON	1,960,000	1,960,000	-	06/15/2025
   Long-term credit CEC	RON	4,827,906	-	4,827,906	07/18/2026
   CHECK	EUR	49,764	-	49,764	07/18/2026
   Shareholder loan	RON	5,000,000	5,000,000		12/31/2025
   Shareholder loan interest	RON	598,889	598,889		12/31/2024
   Bank loan interest	RON	211,337	211,337	-
   Long-term bank loans	RON	3,700,000		3,700,000	02.07.2026
   Unicredit short-term bank loans	RON	1,300,000	1,300,000	-	06/15/2025
   Unicredit short-term bank loans	EURO	13,678,775	13,678,775	-	06/15/2025
   Unicredit short-term bank loans	USD	1,194,200	1,194,200	-	06/15/2025
   Bank loan interest	RON	79,659	79,659	-
   TOTAL		77,927,019	57,255,221	20,671,798

   *The loan is granted by the affiliated party Floreasca Development SA, Bucharest, 20 Icoanei Street, sector 2

   Bank loans have a variable interest rate, determined by considering the ROBOR, EURIBOR or LIBOR indicator at 1/3/6 months, to which is added a margin ranging from 1.00% - 3.00% per year, depending on the maturity and type of loan.

   The loans detailed above are secured with a mix of guarantees consisting of:

   • Fixed assets such as land and buildings

   • Fixed assets such as equipment & cars

   • Raw materials and finished goods inventories

   • Trade receivables

   • Current bank accounts, with their balance;

In addition, the Group benefits as of December 31, 2025 from guarantees from the Romanian Counter-Guarantee Fund and the European Investment Fund, for the partial guarantee of certain contracted loans, in accordance with the provisions of the applicable financing programs.