Turbomecanica S.A.

Earnings Release • Feb 28, 2024

Bd. Iuliu Maniu Nr. 244 District 6 Zip Code 061126 Bucharest - Romania Tel .: (+4) 021 434 32 06; (+4) 021 434 07 41 Fax: (+4) 021 434 07 94 European Unique Identifier (EUID) ROONRC.J40/533/1991 Commerce Registry Code J40/533/1991 Tax Code RO3156315 Unique Registration Code 3156315 Subscribed share fully paid capital 36,944,247.50 RON www.turbomecanica.ro; e-mail: office@turbomecanica.ro

Current Report No. 3 of 28.02.2024

Under the provisions of ASF Regulation no. 5 / 2018 on the issuers of financial instruments and market operations and of the Law no. 24 / 2017 on the issuers of financial instruments and market operations

Reporting date: 28.02.2024 Name issuing entity: TURBOMECANICA SA Headquarters: Bucharest, 244 Iuliu Maniu Blvd., district 6 Phone no.: 021 434 32 06 021 434 07 41 facsimile: 021 434 07 94 Unique Registration Code with the Trade Registry Office: RO 3156315 Registration number with the Trade Registry: J40/533/1991 LEI Code 529900O5AIXHHACIZH85 Subscribed and integrally paid in capital: 36.944.247,50 lei Regulated market where the issued receivables are traded: Bucharest Stock Exchange Capital Titles Standard Shares

I. Important events to report:

Turbomecanica SA makes available for the investor and the regulating entities the preliminary financial results for the financial year closing on 31.12.2023.

We mention the fact that the preliminary financial statements as of 31.12.2023 are not financially audited.

A. Regarding the statement of financial position:

The value of tangible fixed assets increased by putting into operation new machines necessary for the production process, but the significant increase comes from the revaluation of fixed assets. On 31.12.2023, following the revaluation carried out by the company NEOCONSULT, an independent evaluator member of ANEVAR, all the land, buildings, machinery/equipment from TBM's heritage were revalued, and they were reflected in the accounting at fair value.

In the preliminary situations as of 31.12.2023, the contractual assets falling within the scope of application of the IFRS 15 standard "Revenue from contracts with clients" for the year 2023 are being analyzed, documented and justified. Also, the impact of IFRS 15 in the Financial Statements could not be fully complete, until this date, therefore the final financial situations will undergo changes compared to the preliminary situations. The contractual assets related to the year 2023 are impacted to a small extent by IFRS15.

The value of stocks has increased compared to the previous period - a significant impact was also had by the increase in the prices of raw materials and materials for aviation, with which TBM supplies itself, also in 2023, we have also supplied raw materials and materials for the related orders to the client IAR Brasov for the year 2024.

Regarding the commercial receivables, these represent the advances invoiced to the client IAR, Program 1 Helicopter VIP, Program Helicopters L, as well as invoices issued in December 2023, to clients and not yet collected.

The government securities purchased in 2022, worth 5,880,000 lei, reached maturity in June 2023, TBM did not extend their validity.

In 2023, the Company deposited 18,000,000 lei with BRD - Groupe Societe Generale and BT as a deposit. These amounts are likely to be used to secure own funds in order to start the development project in the maintenance of civil engines.

Loans and leasing debts reflect the leasing contracts that the company has concluded in order to secure the Investment Plan, and the short-term loans include the amounts related to the working capital, as well as the part related to the leasing contracts on TS

Reserves and equity increased as a result of the results of the revaluation of tangible assets from 12.31.2023.

B. Regarding the profit and loss situation:

Turnover on 31.12.2023: 131,332,129 RON (including the expected impact of IFRS15) did not reach the budgeted level.

In the aeronautical industry there is a volatility of production, especially regarding the delivery schedule related to the maintenance of engines and mechanical assemblies. Most of the time, these appear as a result of changes requested by clients following operational emergencies, without changing the contracted values. Specifically, in 2023 there were several such requests from our partners, which generated changes in the financial indicators, both in terms of income and expenses.

It is necessary to always have in mind several influencing factors specific to society, which determine the evolution of income and expenses - the maintenance of engines and mechanical assemblies are long-term production processes, the manufacture of aviation products is a small series and also with a cycle long manufacturing time, ad hoc requests from customers, especially regarding the addition of some orders or advance delivery requests.

The variation in stocks of finished products and in progress has increased compared to last year, primarily due to the increase in production in progress and due to the fact that we have not yet finalized the impact of IFRS15 on this variation in 2023.

The financial income has doubled compared to the previous period - through the interest that the company collected from the established deposits, including the interest collected from the securities.

Salary expenses increased by 6% compared to 2022, largely influenced by the evolution of the labor market in Romania.

The company improved its policy regarding provisions, the result being their reduction.

Regarding the profit tax, in 2022 the financial statements were impacted by the current profit tax and the deferred profit tax, while in these preliminary financial statements 2023, this tax could not be finalized yet.

Board of Directors by President, General Manager Eng. Radu Viehmann

STATEMENT OF FINANCIAL POSITION AT 31 DECEMBER 2023 PRELIMINARY UNAUDITED FINANCIAL

	31 DECEMBER 2023	31 DECEMBER 2022
Assets
Fixed assets
Property, plant and equipment	94.634.582	61.375.822
Intangible assets, net	774.330	435.158
Other assets	6.000	6.000
Total long-term assets	95.414.912	61.816.980
Current assets
Inventories	90.285.202	55.658.919
Trade receivables	(2.885.528)	28.706.415
Other receivables	8.647.532	1.534.620
Contract assets	1.977.546	12.219.893
Other current receivables	-	3.563.416
Financial investments	-	5.880.000
Cash and cash equivalents	18.782.914	12.043.696
Total current assets	116.807.667	119.606.959
Total assets	212.222.579	181.423.939
Shareholder equity and liabilities
Shareholder equity
Share Capital	36.944.248	36.944.248
Reserves	92.526.306	68.451.765
Retained earnings	20.673.380	17.954.675
Own shares	(599.408)	(599.408)
Total equity	149.544.525	122.751.280
Long term liabilities
Leases	4.715.601	1.857.927
Deferred tax liabilities	2.050.962	2.050.962
Provisions	820.797	813.667
Other financial liabilities	9.744.668	4.627.544
Total long-term liabilities	17.332.028	9.350.100

Current liabilities
Trade and other liabilities	9.106.997	6.743.521
Borrowing & leasess	20.612.492	27.117.137
Current income tax	1.368.792	2.219.617
Provisions	3.992.751	4.295.456
Other curent liabilities	10.264.994	8.946.828
Total current liabilities	45.346.026	49.322.559
Total liabilities	62.678.054	58.672.659
Total equity and liabilities	212.222.579	181.423.939

GENERAL MANAGER,

RADU VIEHMANN ECONOMIC-COMMERCIAL MANAGER, CLAUDIA ANGHEL

STATEMENT OF PROFIT AND LOSS AT 31 DECEMBER 2023 PRELIMINARY- UNAUDITED FINANCIAL

	31 DECEMBER 2023	31 DECEMBER 2022
Revenues from contracts with clients	131.332.129	## 139.161.607
Changes in inventories of finished goods and work in progress	5.839.223	(1.397.289)
Raw materials, consumables and
utilities	(49.106.751)	## (48.016.004)
Employee benefits and salaries	(55.946.744)	## (52.742.599)
Depreciation and amortisation
expenses	(7.742.702)	## (11.154.177)
Other operating expenses	(11.385.144)	(10.744.195)
Other operating income	795.457	2.144.011
Financel costs	(2.676.198)	## (3.000.113)
Finance income	1.518.037	824.690
Other gains and losses	656.922	## (1.636.849)
Profit before taxation	13.284.229	13.439.082
Income tax	(2.539.450)	(1.249.939)
Profit for the yeart	10.744.779	12.189.143

GENERAL MANAGER,

RADU VIEHMANN ECONOMIC & COMMERCIAL DIRECTOR, CLAUDIA ANGHEL