H1 2024 Report

Translation for information purposes only

Individual half-yearly report for the 1st half of 2024

according to the Financial Supervisory Authority Regulation no. 5/2018

1. The economic and financial situation of VRANCART SA

During the first half of 2024, the performance of Vrancart SA (the "Company") was impacted by the decrease in sales volumes, as well as by the lower prices in the corrugated cardboard and packaging market, which resulted in revenues lower than in 2023, but which are expected to be recovered by the end of the current year.

Packaging demand has started to pick up slightly since the second half of the first quarter and the Company's management expects improved results starting from the second half of the year. The minimum wage increase from October 1st, 2023 continued to impact personnel-related costs in the first half of the current year. Financing costs, although down by 1,3% compared to the same period of the previous year, still remain at high levels.

EBITDA was RON 19,0 mil. (vs. the budgeted amount of RON 17,9 mil.) in absolute value, and its relative value recorded the level of 10,4% (vs. 9% budgeted). The Company's management aims to maintain the trend recorded in the first half of the year until the year end.

Compared to the same period of the previous year, the net result recorded was RON -8.4 million (vs. RON +8.5 million). The current liquidity improved to 0,92 (vs. 0,88), being influenced by the reimbursement at the maturity date (March 15th, 2024) of the debenture loan.

The interim (simplified, unaudited) individual financial statements as at June 30th, 2024 according to the Order of the Ministry of Public Finances no. 2844/2016 for the approval of the Accounting regulations compliant with the International Financial Reporting Standards applicable to trade companies whose securities are admitted to trading on a regulated market are enclosed hereto.

The interim individual financial statements for the 1st half of 2024 have not been revised by an independent external auditor, as this is not a legal or statutory requirement.

1.1. Balance sheet items

As at June 30th, 2024 and during the period January 1st - June 30th, 2024, the evolution of the main financial indicators was as follows:

• The Company's non-current assets increased by 16% as a result of the increase in tangible assets by RON 48.989.939.
• The amount of the Company's current assets increased by 8% as at June 30th, 2024 compared to the year beginning, mainly due to the increase of trade receivables by 15% generated by a higher business volume.
• Trade receivables increased by RON 9.942.127 in the first six months of 2024 compared to the year beginning, as a result of the increase in the volume of sales in the context of the increase in the average number of days of collection.
• The total liabilities recorded as at June 30th, 2024 amount to RON 333.164.450, up by 23% compared to the amount recorded as at January 1st, 2024, mainly as a result of the working capital financing by using short-term credit lines, as well as due to the long-term loans contracted to finance the investment projects approved by the General Meeting of the Shareholders in April 2024 and previously.
• The amount of equity as at June 30th, 2024 is RON 387.091.695, up by 6% compared to the year beginning, as a result of the share capital increase by RON 31.920.075. The reserves remained relatively constant from the year beginning.

Page 2/6

1.2. Profit and loss account

The Company's performance in the first half of 2024 was influenced by the increase in the prices of raw materials and utilities tariffs generated by the trends in the international market, which were also reflected in the local market, the tariffs of services provided by third parties, as well as by the impact of the minimum wage increase starting from October 1st, 2023 and the turnover tax.

The results achieved in this period, which are reflected in the negative profitability, but some balanced financial indicators, confirm the Company's resilience to adverse changes in the market.

In the first half of 2024, the evolution of the main indicators of the Profit and loss account is as follows:

• The total income during the analysed period amounted to RON 192.585.166, down by 18% compared to the same period of the previous year, due to the reduction of the prices charged by the company, in an attempt to maintain the production achieved and sold.
• The total expenses of the period amounted to RON 200.258.820, down by 12% compared to the same period of the previous year; however, the cost of raw materials recorded an increase by 50% as a result of the impact of the increasing trend of purchase prices.
• The Company's operating profit recorded a decrease as a result of the effects listed above, but the management intends to remedy it in the second half of the year through various strategic and tactical measures.

Page 3/6

1.3. Cash flows

The balance of cash and cash equivalents recorded as at June 30th, 2024 is positive, namely RON 3.800.124. During this period, the Company was able to manage its funds in an effective manner and met all its outstanding obligations.

2. Analysis of the activity of VRANCART SA

2.1. Presentation and analysis of the trends, elements, events or uncertainty factors that affect or might affect the issuer's liquidity, compared to the same period of the previous year

The Company's management considers the results achieved as at June 30th, 2024 as unsatisfactory, being lower than in the previous year, affected by the negative evolution of the increasing prices and tariffs for raw materials and utilities. The control mechanisms and methods implemented ensure that the company's financial balance is maintained, and the company's development strategy is correlated and adapted to market requirements and the company's development needs.

2.2. Presentation and analysis of the effects of all current or anticipated capital expenditures onto the issuer's financial situation (stating the purpose and financing sources of these expenditures) compared to the same period of the previous year

The amount of the investments made by the Company during the first six months of 2024 was RON 65.401.555, compared to RON 25.290.260 in the first half of the previous year. Major investments have been made in the 20MW photovoltaic park, as well as in the modernization and endowment of the existing production machinery. These projects were adequately financed, partly from non-reimbursable funds which are expected to be received in the second half of the year.

The Company will continue to implement its investment projects planned for 2024, which were approved by the General Meeting of the Shareholders in April 2024, the sources of financing being both internal and attracted sources (bank loans for investments).

The Company expects that the investments made in the first half of the year will favourably impact the Company's financial position in the medium and long term.

Page 4/6

The economic and financial indicators as at June 30th, 2024 are as follows:

Overall and immediate liquidity recorded a slight increase as at June 30th, 2024 compared to June 30th, 2023, as a result of the cash inflow received on the share capital increase.

The debt recovery period recorded a slight increase and at the same time, the number of days of credit obtained from suppliers also increased, which contributed to the improvement in the company's liquidity.

Profitability from operating activities decreased in the first six months of 2024 compared to the same period of the previous year. The gross profit rate decreased as at June 30th, 2024 compared to the same period of 2023, as a result of higher production cost and lower prices.

2.3. Presentation and analysis of the events, transactions, economic changes that affect to a significant extent the income from the main activity. Specification of the extent to which the income was affected by each of the elements identified. Comparison to the corresponding period of the previous year.

VRANCART SA has no events and transactions to report that could significantly affect the income from the main business.

3. Changes that affect the issuer's capital and management

3.1. Description of the circumstances when the issuer was unable to meet its financial obligations during the analysed period

The company VRANCART S.A. was not in any situation unable to meet its financial obligations during the analysed period. The company does not have any outstanding liabilities to the public budgets or to its private partners.

3.2. Description of any changes related to the rights of the holders of securities issued by the

issuer

The company VRANCART S.A. does not have any changes to report in relation to the rights of the holders of securities issued.

Page 5/6

4. Major transactions

On April 29th, 2024, the Ordinary General Meeting of the Shareholders approved the individual and consolidated financial statements as at December 31st, 2023 and the Revenues and Expenses Budget of VRANCART SA for the financial year 2024, along with the Investment Plan for 2024.

On July 4th, 2024, the Company completed the share capital increase operation and the legal procedures for the registration of the new share capital amount with the competent authorities is currently in progress. 318.899.098 ordinary nominative shares, with a nominal value of RON 0,1/share and a total value of RON 31.956.862,07 have been subscribed, out of which RON 31.889.909,80 represents the total nominal value and RON 66.952,27 represents the share premium.

Page 6/6

Translation for information purposes only

VRANCART SA

INTERIM INDIVIDUAL FINANCIAL STATEMENTS (SIMPLIFIED, UNAUDITED)

AS AT JUNE 30th, 2024

drawn up in accordance with

the Order of the Ministry of Public Finances no. 2844/2016 for the approval of the Accounting regulations compliant with the International Financial Reporting Standards, applicable to trade companies whose securities are admitted to trading

on a regulated market

VRANCART SA

INTERIM INDIVIDUAL FINANCIAL STATEMENTS AS AT JUNE 30th, 2024

Table of contents