UCM Resita S.A.

Quarterly Report • Nov 14, 2024

Hech Rosita SA

25%

Sediu Social: Pinta Charles de Gaulle, or 15 Cladites Charlas de Coulle Plaza, etai 3, hirou Peles 011857, sector 1, Bucaresti, Romania Sedio Administrativ: Str. Golului, Nr.1. 320053. Resits, Romania Icl: +40-(0)255-217111 · Fax: +40-(0)255-223082 contact@guemr.m · http://www.sicmr.ro

U.C.M. Resite S.A.

In reorganizare iudiciană, în Judicial rearganisation, en redressement

CURRENT REPORT

As per Law no. 24/ 2017 and ASF Regulation no. 5/2018

Date of the report: 14.11.2024

Name of the issuing company: U.C.M. Resita S.A.

Registered office: Charles de Gaulle Square, No. 15, Charles de Gaulle Plaza Building, 3ª Floor, Office Peles, Sector 1, Bucharest

Administrative headquarters: Resita, Golului Street, no. 1, 320 053, Caras-Severin County Phone No .: 0355/409542; Fax: 0355/409542

Unique registration code: 1056654

Number at the Trade Register Office: J 40/13628/2011

Subscribed and paid-up capital: 10,993,390.40 lei

Regulated market where the issued securities are traded: Bucharest Stock Exchange Important events to report: Report for the third quarter of 2024

S.C. U.C.M. Resita S.A. informs the general public about the availability of the Report for the third quarter of 2024.

The Report can be found, as of 14.11.2024 , on the website http://www.ucmr.rg and the IRIS platform link.

As of the same date, the persons interested may, on written request, obtain a copy of these documents. The application will be submitted/sent directly to the administrative headquarters of the company (workstation) located in Resita, Golului Street, no. 1, 320053, Caras-Severin County or at fax number 0355/409542.

The financial statements of the company for the third quarter of 2024 are not audited.

No.	Balance sheet Items	01.01.2024	30.09.2024
1	Fixed assets	54,456,825	52,222,261
2	Current assets	101,600,916	99,679,741
3	Prepayments	6 599	2. 177
	TOTAL ASSETS	156.064.341	151,804,778
4	Debis	440,480 352	445.463.869
5	Income in advance	30,810,198	1.487.405
6	Provisions	82,776,060	82,776,060
	Owner's equity	398,002,269	677997555
	TOTAL LIABILITIES	156.064.341	151,804.779

In the table below is presented the situation of assets, liabilities and equity on September 30, 2024 compared to the beginning of the year 2024:

C.C.M Resita S.A Sediu Social. Puita Charles de Gaulle. w. 15 Cladurea Charles de Gaulle Plaza, etaj 3. biron Peks 011857, sector 1, Bucuresti, Romania Sedio Administrativ Sir Golului. Nr. 1, 320053, Reşita, Romania Tel +40-(0)255-2171111 · Fax: +40-(0)255-223032 contact:@ uemr.ro http://www.ucmr.m

2333
Portugues de la program de la program de la program de la program de la mana de la marte de la mana de la mana de la mana di directoria de la minutative de la marte de l în reorganizare judiciară, în judicial reorganisation, en redressement

		Lei
No.	Indicator name	30.09.2078	30.09.2024
1	Turnover (2+3-4)	29,987,289	5174.014
2	Production sold	29,987,289	5 874.014
3	Revenues from sale of goods	1
4	Discounts granted	1
5	Changes in stocks: Credit balance
	Debtor balance	2,676,857	10,668,380
6	Capitalized production
7	Exercise production (1+/-5+6)	27 310 432	(5,494 366
8	Other operating revenues, of which :	614. 257	98,305 874
Sa	Income from fixed assets held for sale	CRE 324	67.879.000
9	Operating revenues, total (7+8)	27,924,689	92,811,505
10	Financial revenues, total	1274.980	1,781 058
11	Total revenues (9+10)	29,199,669	94,542,558

The expenses of the company are shown below:

			LE
No.	Indicator name	30.08.2028	30.09.2024
1	Expenses on raw material and consumables	4,106,741	107,430
2	Other external expenses (energy and water)	3,640,733	1,589,490
3	Expenses with the personnel	17.700.778	5,194,470
4	Adjustments	1,604,294	(7,466,983)
5	Other operating expenses, of which :	6.541.822	68,095,718
53	Expenses on disposal of fixed assets held for Sale	144.113	60,624,641
ਿ	Total operating expenses (rw. 1 la 5)	33,594,363	67,520,125
7	Total financial expenses	507 745	288.778
8	TOTAL EXPENSES	34,102,108	67,808,896

253 del de industria

în reorganizare judiciară, în judicial reorganisation, en redressement

The evolution of the results is shown below:

			Lei
No.	Indicator name	30.03.2078	30.09.2024
	Operating revenues	21 824 659	92 81 11 505
2	operating expenses	36.594.363	67 520,125
3	Operating activities	(6,669,674)	25,291,380
রী	Financial revenues	1 274,980	1789 058
5	Financial expenses	507 745	288 Tria
6	Financial result	767-235	1,442,282
	The profit tax		6.653.948
8	Net result for the financial year	(4.902.439)	20,079.714

The 20,079,714 lei net profit achieved during the first three quarters of 2024, primarily through the sale of the "Business Line" as outlined in the 11.03.2024 contract, is expected to offset the accumulated losses by the end of the year, in compliance with relevant laws.

UCM RESITA SA- în reorganizare, in judicial reorganisation, en redressement, Judicial Administrator, EURO INSOL SPRL and V.F. Insolventa SPRL Consortium

EURO INSOL BF 0 11 - 0534 BDRI ROMANIE

s.c.U.C.M. Reșița s.a.

(societate în reorganizare judiciară, in judicial reorganisation, en redressement)

Separate Financial Statements

prepared in accordance with the

Order of the Minister of Finance no. 2844/2016

on

SEPTEMBER 30, 2024

(societate în reorganizare judiciară, company in judicial reorganisation, en redressement)

Separate Financial Statements on September 30, 2024

(all amounts are given in lei (RON) unless otherwise stated)

Contents

Judicial Administrator Report	page	2- 10
Statement of Judicial Administrator	page	11
Statement of Financial Position	page	12
Statement of Comprehensive Income	page	13
Statement of Changes in Shareholders' Equity	page	14
Statement of Cash Flows	page	15
Economic - Financial Indicators	page	16
Explanatory Notes to the Interim Financial	page	17-392
Statements

Separate Financial Statements on September 30, 2024 (all amounts are given in lei (RON) unless otherwise stated)

Judicial Administrator Report on 30th September 2024

The reports on september 30, 2024 were prepared in accordance with the provisions of OMFP 2844/2016, for the approval of the accounting regulations compliant with the International Financial Reporting Standards, corroborated with the provisions of Law 85/2006, Law on Insolvency Procedure.

In the first 9 months the Company continued its activity according to the status of a company in judicial reorganization ..

The Judicial Administrator proceeded to prepare this report to present the economic and financial evolution of the Company during the analyzed period, as well as the stage of implementation of the recovery measures included in the confirmed reorganization plan.

This report will analyze the period January- September 2024.

A. Statement of assets, debts and equity

The situation of assets, debts and equity on 30.09.2024, compared to the beginning of 2024, is as follows:

			Lei
No.	Balance sheet items	01.01.2024	30.09.2024
1	Fixed assets	54.456.825	52,222,261
2	Current assets	101,600,916	99.579.741
3	Prepayments	6.599	2.777
	TOTAL ASSETS	156.064.341	151,804,779
4	Debts	440,480,352	445,463,869
5	Income in advance	30,810,198	1.487.405
6	Provisions	82,776,060	82,776,060
7	Owner's equity	(398.002.269)	(377,922,555
	TOTAL LIABILities	156,064,341	151,804,779

Compared to 01.01.2024, on 30.09.2024 the total assets registered a decrease of 4.1 %, and current liabilities increased by 1.13%

The debts existing in the balance on 30.09.2024 refer only to the rest to be distributed through the Payment Program, to which are added the current debts that are paid according to the resulting documents.

The following changes were recorded in the company's assets compared to the values existing on 01.01.2024:

(societate în reorganizare judiciară, company in judicial reorganisation, en redressement)

Separate Financial Statements on September 30, 2024

(all amounts are given in lei (RON) unless otherwise stated)

				Lei
Nr. crt.	Designation of indicator	01.01.2024	30.09.2024	Diferenţe
0	11	2	จจุ	4=3-2
	Fixed assets	54.456.825	52.222.261	(2,234,564)
2	Current assets	101,600,916	99,579,741	(2,021,175)
3	Prepayments	6.599	2,777	(3.822)

The current assets existent in the patrimony registered the following evolution compared to the beginning of 2024:

				Lei
Nr. crt.	Designation of indicator	01-07-2022	30.09.2024	Diferențe
0	7	2	3	4=3-2
1	Stocks, of which:	81,210,033	19,149,382	(62.060.651
1.a	- raw material and consumables	3,366,375	3,348,397	(17,978)
1 b	- fixed assets held for sale	75,190,212	14,565,570	(60,624,642)
1.C	- production in progress	2,110,637	873.423	(1,237,214)
1.d	- finished products and goods	542.809	361,992	(180,817)
2	Other current assets of which:	20,390,883	80,430,359	60,039,476
2.a	- receivables	17,110,631	12,001,109	(5,109,522)
2.b	- cash and cash equivalents	3,280,252	68,429,250	65,148,998

The sale-purchase contract no. 210/11.03.2024 concluded between UCM Resita SA and Uzina de Construcții Mașini Hidroenergetice S.R.L. has led to significant changes in the structure of current assets, with a decrease in fixed assets held for sale, as well as in work in progress and finished products, while cash has increased.

In the third quarter of 2024, works executed in previous years for Turbiwatt were invoiced upon contract termination. Advances collected during the project execution that exceeded the invoiced amounts at termination were refunded to the client.

Receivables recorded a significant decrease, primarily due to the regularization in the second quarter of 2024 of the advance for electricity recorded in 2023.

The amount from the sale of business lines according to Sale-Purchase Contract No. 210/11.03.2024 between UCM Reşita SA and Uzina de Construcţii Maşini Hidroenergetice S.R.L., reflected in the cash account balances from 30.09.2024, will be distributed in accordance with the provisions of the Reorganization Plan after the resolution of the ongoing court challenges related to the Distribution Report prepared by the Judicial Administrator.

(societate în reorganizare judiciară, company in judicial reorganisation, en redressement)

Separate Financial Statements on September 30, 2024

(all amounts are given in lei (RON) unless otherwise stated)

Within the liabilities of the Company, the patrimonial changes compared to 01.01.2024 are the following:

				Lei
No.	Indicator name	01.01.2024	30.09.2024	Diferențe
0		2	6	4=3-2
	Owner's equity	(398,002,269)	(377,922,555)	20,079,714
2	Debts	440,480,352	445,463,869	4,983,517
3	Income in advance	30,810,198	1,487,405	(29,322,793)
ব	Provisions for liabilities and charges	82,776,060	82.776.060

B. Profit and loss account

The following indicators stand out from the profit and loss account:

			Lei
No.	Indicator name	30.09.2073	30.09.2024
1	Turnover (2+3-4)	29,987,289	5.174.014
2	Production sold	29,987,289	5,174,014
3	Revenues from sale of goods
4	Discounts granted	ma
5	Credit balance Changes in stocks:	-
	Debtor balance	2.676.857	10,668,380
6	Income from the sale of fixed assets.
7	Exercise production (1+/-5+6)	27,310,432	(5,494,366
8	Other operating revenues	614.257	98,305,871
8a	Income from fixed assets held for sale.	333,921	67,879,000
9	Operating revenues, total (7+8)	27,924,689	92,811,505
10	Financial revenues, total	1,274,980	1,731,053
11	Total revenues (9+10)	29,199,669	94,542,558

The Company's expenses are presented in the following table:

			Lei
No.	Indicator name	30.09.2023	30.09.2024
1	Expenses on raw material and consumables	4,106,741	107.430
2	Other external expenses (energy and water)	3.640.733	1,589,490
3	Expenses with the personnel	17,700,773	5,194,470
4	Adjustments	1.604.294	(7,466,983)
5	Other operating expenses, of which :	6,541,822	68,095,718
5a	Expenses on disposal of fixed assets held for sale	144.113	60.624.641
6	Total operating expenses (rw. 1 la 5)	33,594,363	67,520,125
7	Total financial expenses	507.745	288,771
8	TOTAL EXPENSES	34,102,108	67,808,896

ﻟﻤﺎ ﺍ

(societate în reorganizare judiciară, company in judicial reorganisation, en redressement)

Separate Financial Statements on September 30, 2024 (all amounts are given in lei (RON) unless otherwise stated)

Both revenues and expenses recorded in the first three quarters of 2024 are significantly influenced by the sale-purchase contract No. 210/11.03.2024 between UCM Reşita SA and Uzina de Construcții Mașini Hidroenergetice S.R.L. and are reflected in the sections "Variation in Stocks," "Other Operating Income,", "Adjustments" and "Other Operating Expenses."

The transaction also impacted other operational activities by reducing both revenues and expenses because, following the conclusion of the contract, the Company ceased production activities.

			D
Nr. crt.	Indicator name	30.09.2023	30.09.2022
	Operating revenues	27,924,689	92,811,505
2	operating expenses	33,594,363	67,520,125
3	Operating activities	(5,669,674)	25,291,380
4	Financial revenues	1.274.980	1,731,053
5	Financial expenses	507,745	288,771
6	Financial result	767,235	1,442,282
7	The profit tax		6,653,948
8	Net result for the financial year	(4,902,439)	20,079,714

The evolution of the results is presented in the following table:

The net profit of 20,079,714 lei for the first three quarters of 2024, mainly obtained in the context of the sale of the "Business Line" materialized through the contract from 11.03.2024, will cover the reported losses by the end of the year, in accordance with applicable legislation.

C. Personnel situation

In the third quarter, the second three-month period for which individual employment contracts were concluded for the necessary staff to carry out current activities expired; these contracts were extended, through an additional act, with the agreement of the parties, for another three months, respectively until 13.12.2024.

On 30.09.2024, UCM Resita SA had a workforce of 37 employees, of which 2 were on medical leave and 3 had suspended employment contracts due to parental leave.

D. Commercial Situation

The turnover achieved by UCM Reşita SA in the third quarter of 2024 was 265,874 lei, with 70% obtained from the activity of renting residential and commercial spaces.

Separate Financial Statements on September 30, 2024 (all amounts are given in lei (RON) unless otherwise stated)

Considering the transfer of production activities to UCMH, efforts were made during this period to close contracts that were not subject to assignment.

Thus, the contract with the French company Turbiwatt was terminated, and goods brought for processing were returned, and services provided until the moment of return were invoiced. The turnover related to these services represents 6.2% of the total turnover.

E. Environmental aspects

The activity regarding environmental protection in the third quarter mainly refers to: a) the sampling of water from discharge channel no. 11 on the ABC industrial platform, which was sent to the contracted laboratory for quarterly analyses regarding the quality of industrial/rainwater:

b) the online submission of declarations regarding emissions from stationary sources to the Environmental Fund Administration for the months: June, July, and August 2024; c) the preparation of the location within the former Diesel Engine department for the temporary storage of electrical equipment containing polychlorinated biphenyls (PCBs) that have been decommissioned, transformers, and PCB capacitors, in accordance with legal provisions;

d) in September 2024, the transfer of 32 decommissioned PCB capacitors from various locations of the Company to the former Diesel Engine department for temporary storage pending disposal.

Through address no. 177/DG 0060/26.09.2024, UCM Reşiţa requested the Caraş-Severin Environmental Protection Agency to revise the plan for the disposal of electrical equipment containing PCBs in concentrations greater than 50 ppm for the year 2024;

For the disposal of PCB-containing equipment that has been decommissioned, with legally set deadlines, requests for offers were sent to three companies authorized to take over and decontaminate the 7 transformers, as well as to ensure the incineration of the oil drained from them and the incineration of the 90 capacitors. These companies were: SC PRO AIR CLEAN ECOLOGIC SRL, Timisoara, SC ECO ELA IMPORT EXPORT SRL, Bucharest, SC JIFA SRL, Sibiu.

Due to repeated requests from UCM Resita SA, the Caras-Severin Environmental Protection Agency issued Environmental Obligations upon cessation of activity, no. 8326/AAA/01.10.2024, for UCM Reşiţa SA, ABC Industrial Platform and no. 8327/AAA/01.10.2024, for UCM Resita SA, Câlnicel Industrial Platform.

Separate Financial Statements on September 30, 2024 (all amounts are given in lei (RON) unless otherwise stated)

F. Implementation of the Reorganization Plan

Due to the context in which UCM Resita SA finds itself, it has not been able to carry out. according to the Reorganization Plan, any activities in the blue hall and SME2, therefore, efforts are being made to sell these assets as outlined in the Reorganization Plan.

In the third quarter of this year, the implementation of the measures provided in the Reorganization Plan focused mainly on organizing auctions for the sale of the Electric Machines II Section, in accordance with offer no. 2507/11.07.2024, made by SC UZIMET INDUSTRY SRL and the assets offered by UAT Resita Municipality through offer no. 58178/01.07.2024.

In this regard, on 29.07.2024, the Judicial Administrator prepared the sale regulations for the assets that are the subject of these offers and submitted them for approval to the Creditors' Assembly, which met on 20.08.2024.

The agenda of this meeting also included the sale of the Screw Factory building in the town of Anina, a property listed as historical monument code LMI: CS-II-m-A-10969.02, dated in 1872.

According to Minutes no. 552/20.08.2024, the Creditors' Assembly approved the sale regulations presented by the Judicial Administrator at the meeting from 20.08.2024.

The Judicial Administrator organized on 30.08.2024, at 11:00, on the UNPIR online auction platform in the industrial properties section a public ascending auction for the bulk sale of the Electric Motors II Section asset - Câlnicel platform, consisting of land, buildings, machinery, installations, means of transport, furniture, and IT equipment, as well as fixed assets in the nature of inventory items, designs, and models, the property of UCM Reşita.

Although SC UZIMET INDUSTRY SRL purchased the specifications booklet, the bidder did not submit the required guarantee to participate in the auction, nor was another specifications booklet purchased.

The Judicial Administrator organized a new public ascending auction for the bulk sale of the Electric Motors II Section asset - Câlnicel platform on 26.09.2024, at 11:00, on the UNPIR platform.

Once again, no one participated in the auction.

Regarding the assets that were the subject of offer no. 58178/01.07.2024 issued by UAT Resita Municipality, bades on discussions, it was agreed to organize three distinct auctions for each objective, at certain intervals, starting from October.

Separate Financial Statements on September 30, 2024 (all amounts are given in lei (RON) unless otherwise stated)

G. Other significant events for the activity of UCM Resita

On 08.07.2024, the Company received Evaluation Report DRS 1242 issued by evaluator Darian DRS for the components of the hydrogenerator related to the Stejaru Power Plant small hydrogenerator HG 1 and HG 2 in stock, which was presented to the Creditors' Committee convened on 08.08.2024. The evaluation was necessary for the valorization of these components, considering the interest expressed by SPEEH Hidroelectrica SA.

On 19.09.2024, the Company received and registered Notification no. 591 sent by UCMH regarding the identification, of certain quantities of waste oils and expired lacquers and paints, resulting from activities carried out by UCM Reşiţa before the transfer, based on an inspection made by the Environmental Guard, in the acquired perimeter.

To dispose the indicated waste types and quantities within the Notification, the Company signed a contract with a firm specialized in such activities, and the handover of these materials are to be proceed.

The Creditors' Committee convened by the Judicial Administrator on 06.09.2024 approved the engagement of a conventional representative in case no. 1291/62/2023, pending before the Brasov Tribunal, Civil Section I, in which UCM Resita S.A. is the plaintiff, the subject of the case being a tort liability action.

At the hearing on 17.09.2024 in case no. 16447/3/2024, regarding the complaint filed by UAT Resita Municipality against the Report on the distribution of the price received in the reorganization procedure of U.C.M. Resita SA published in the Insolvency Procedures Bulletin no. 8714 dated May 10, 2024, the court admitted the exception of inadmissibility of the complaint and rejected the complaint filed by UAT Resita, with the right of appeal within 7 days of notification.

As of the date of this report, there was no information regarding the appeal.

Since the Company is no longer conduction activities, the 32 employees with active contracts, working part-time, are engaged in activities related to the conservation and administration of assets, the collection of rents for housing and other rental spaces owned by the debtor, specific accounting record activities, environmental protection, as well as all activities necessary to comply with legal and contractual obligations that UCM Resita S.A. has.

A significant and extensive activity is related to issuing certificates requested by former employees to attest their activity, duration of employment, salary, bonuses, seniority in work, profession, and specialty, in accordance with the provisions of art.34, para. 5 of the Labor Code.

The entry into force of Law 360/2023 regarding the public pension system on 01.09.2024 has led to an increase in the number of requests for certificates in recent months.

(societate în reorganizare judiciară, company in judicial reorganisation, en redressement)

Separate Financial Statements on September 30, 2024 (all amounts are given in lei (RON) unless otherwise stated)

Thus, as of 30.09.2024, there were 1,540 unresolved requests at the Company level, noting that one request may involve the issuance of 3-4 different types of certificates. It should also be noted that for each year worked, data must be manually collected from 12 payrolls, and most requests come from individuals who have worked their entire 35-40 year careers at UCM Reșița.

Given the small number of employees and their working hours (2 hours/day), it is impossible to resolve requests within the legal timeframe of 15 days.

In this context, the Judicial Administrator has taken steps to hand over the personnel archive to a specialized firm, for which various offers for services of takeover, organization, and storage of the archive according to current legal norms have been requested.

For the designation of a service provider for the takeover, organization, and storage of the archive, the offers were presented to the Creditors' Committee met on 08.08.2024.

According to Minutes no. 542/08.08.2024, the Creditors' Committee did not designate a service provider for processing and storing the archive, requesting a postponement of the discussion, continuing the local selection of offers and communicating them to the creditors.

The Judicial Administrator has requested offers from archival service providers in the Resita area, intending to reconvene the meeting to present them to creditors for designation.

H. Subsequent Events after the reference period

According to the sale regulations approved by the Creditors' Assembly on 20.08.2024, the Judicial Administrator organized the sale procedure in bulk through a public ascending auction with bidding and a rising price for the Objective Asset "Villas" consisting of land, buildings, villas, and movable goods, the property of UCM Resita. The auction took place on 16.10.2024, at 11:00, at the headquarters of the judicial administrator located in Bucharest. Costache Negri Street no. 1-5, floor. 3, Opera Center Building, sector 5. The starting price of the auction for the bulk valorization of the Asset with all components mentioned in Annex 4 was 369,915 Euros (excluding VAT).

The auction was awarded to the only participant, UAT Resita Municipality. On 21.10.2024, UAT Reşiţa submitted a request to the Company for payment in installments, in 10 equal rates, of the price difference in the amount of 332,923.50 euros, remaining after the payment of the 10% guarantee of the asset's value.

Because the acceptance of this request is being possible only by amending the sale regulations approved by the Creditors' Assembly on 20.08.2024, the Judicial Administrator convened the Creditors' Assembly, which, according to Minutes no. 701/29.10.2024, approved the installment of the price difference in 10 equal monthly payments that UAT Resita Municipality will pay from November 2024 to August 2025.

Separate Financial Statements on September 30, 2024 (all amounts are given in lei (RON) unless otherwise stated)

Since no one participated in the first two auctions, on 25.10.2024, the Judicial Administrator announced the organization of a new ascending public auction for the bulk sale of the Electric Motors II Section asset - Câlnicel platform, which will take place on 07.11.2024, at 11:00, on the UNPIR online auction platform in the industrial properties section.

Based on a complaint made by a former employee regarding the non-compliance with the deadline set by the Labor Code for issuing the requested certificates, from 22-25.10.2024, the Company was subject to a control made by the Caras-Severin Territorial Labor Inspectorate.

Through Minutes no. 37215, the labor inspection authority imposed two measures on the Company:

i. to issue the certificates requested by the complainant by 04.11.2024 ii. to respond to all requests for issuing certificates registered by the date of inspection until 31.12.2024.

The first measure was fulfilled by 29.10.2024, and the Company notified the ITM about this through address no. 668/UCMR/31.10.2024.

Regarding the fulfillment of the second measure, we reiterate briefly what was mentioned in point G of this report, namely that the Company cannot respond to all requests, considering, on one hand, the very high number of requests, and on the other hand, the small number of employees specialized in data search, as well as their working hours of 2 hours/day. During October, 10 requests were resolved, for which about 30 certificates were issued, and 71 new requests were registered. Thus, on October 31, there were 1,601 unresolved requests, which could generate the issuance of a much larger number of certificates, depending on the requests in each application (seniority certificate, gross salary, bonuses, etc.)

In this context, it is necessary to hand over the personnel archive to a specialized firm; thus, the Judicial Administrator reconvened the Creditors' Assembly for 15.11.2024, with the agenda to present offers and designate a service provider for the takeover, organization, and storage of the archive according to current legal norms.

Judicial Administrator: EURO INSOL SPRI. and VF Insolventi SPRL Consortium

s.c. U.C.M. Reşiţa s.a.

(societate în reorganizare judiciară, company in judicial reorganisation, en redressement)

Separate Financial Statements on September 30, 2024 (all amounts are given in lei (RON) unless otherwise stated)

STATEMENT OF JUDICIAL ADMINISTRATOR OF UCM RESITA SA COMPANY

The Special Trustees of the Company hereby declare that they assume their responsibility for the Interim Financial Statements on September 30, 2024.

The Special Trustees of the Company confirm, regarding the interim Financial Statements on September 30, 2024, the followings:

• a) The Interim Financial Statements are prepared in accordance with the International Financial Reporting Standards, as adopted by the European Union;
• b) The accounting policies used in preparing the Interim Financial Statements are in accordance with the applicable accounting regulations;
• c) The Interim Financial Statements present a fair image on the financial position, financial performance and other information related to the activity carried out;
• d) The Company carries out its activity under the condition of continuity.

This statement is in accordance with Art. 30 of the Accounting Law No. 82/1991, republished.

Judicial Administrator: EURO INSOL SPRL and VF Insolvență SPRL Consortium

s.c. U.C.M. Reșița s.a.

Lei

(societate în reorganizare judiciară, company in judicial reorganisation, en redressement)

Separate Financial Statements on September 30, 2024

(all amounts are given in lei (RON) unless otherwise stated)

Reference Statement of Balance sheet items tinancial Note position IAS 1.10(a), 115			Balance on 01.01.2324	Balance on 30.09.2024
IAS 1.54(a)	3	Tangile fixed assets	50,295,482	48,554,281
IAS 1.541ct	3	Intangible fixed assets	444,076	417,547
	3	Financial assets	3.717317	3,250,433
		Total of fixed assets	54.456.825	9 9 2 261
IAS 1.54(h)	4	Trade receivables and receivables from affiliated entities	4,984,273	386,839
IAS 1.54(g)	5	Stocks	6,019,822	4,583,812
IFRS 5.38		Fixed assets held for sale	75,190,211	14,565,570
IAS 1.54(0), 50	192	Deferred tax assets	11,324,226	11,324,226
LAS 1.54(h)	4	Other receivables	802, 152	290,044
IAS 1.54(i)	6	Cash and cash couivalents	3,280,252	68,429,250
		Prepavinents	6.600	2.777
		Total of current assets	101.607.516	99.582.518
		TOTAL ASSETS	156,064341	151.804 77.9
1.54(k)	7	Supplies and other trade payables	7,739,108	5,428,440
IAS 1.54(k)	7	Taxes and other debts	408,407,356	415,701,541
IAS 1.54(0), 56	12	Deferred tax debts	24,333,888	24 388 888
IAS 1.54(1)	8	Provisions	82,776,060	82,776,060
AS 1.55, 20.24		Revenues in advance	30,810,198	1,487,405
		Total debts	554.066.610	529.727.334
		Total acssets minus Total debts	(398,002,269)	(377.922.555)
	9	Reastered capital	601,685,084	601.685,084
	3	Revaluation reserves	99,992,438	70.793.446
	9	Legal reserves	1,972,406	1,972,406
		Other reserves	16,088,620	16,088,620
	9	Carried over result	11,105,351,085)	(1,088,541,825)
	9	Current result	(12,409,732)	20,079,714
	9	Profit sharing, establishing of legal reserves
		Total equity	(398,001,269)	(377.922.555)
		TOTAL LIABILITIES	156.064.341	15/18/14-779

Statement of financial position on 30.09.2024

Judicial Administrator:

EURO INSOL SPRL and VF Insolvență SPRL Consortium

10131

EU

0 11 - 0534

ROMANIE

HR and Economic Director Nicoleta Liliana IONETE

12

s.c. U.C.M. Reșița s.a.

(societate în reorganizare judiciară, company in judicial reorganisation, en redressement)

Separate Financial Statements on September 30, 2024

(all amounts are given in lei (RON) unless otherwise stated)

Statement of comprehensive income on 30.09.2024

な	Lei	일

Reference STATEMENT OF ONE RALL RESULT IAS 1.10(B), 81(A)	Explanations	30.09 2023	30.09.2024
IAS 1. 82(a) IAS 1.99,103	Income from sales	29,987,289	5,174,014
IAS 1.99. 103	Cost of gales	25,409,435	5,967,454
	Gross operting profit (loss)	4,577,854	(793,446)
IAS 1. 82(a) IAS 1.99,103	Income from the sale of line of business		97,004,883
IAS 1.99, 103	Cost of selling the line of business		65,376,490
	Gross profit (loss) from sale of business line		31,628,393
JAS 1.99, 103	Other operating income	614,257	1,300,988
IAS 1.99. 103	Distribution costs	:4:42	14,000
IAS 1.99. 103	Administrative expenses	10,973,631	6,830,561
7.8 1.99. 103	Other operating expenses	(112,728)
IAS 1. 82(a) IAS 1.99.103	Financial income	1,274,980
IAS 1.82(b)	Financial expenses	507,745	1,731,053 288,771
TAS 1.85	Remit before tax	(4,902,439)	26,733,662
IAS 1.82(d). IAS 12.77	Income tax expenses		6,653,948
	Net Profit (loss)	(4.902.439)	20,079,714
	Establishing of legal reserves under Law31/1990
IFRS 5.33(a), 1.82 (e)	Profit atributable to:		e
AS 1836 Hili	Cheners of the Company
IAS 1.83(b (i)	Non-controlling interests

Judicial Administrator:

EURO INSOL SPRL and VF Insolvență SPRL Consortium

EURO INE 101

RI

HR and Economic Director Nicoleta Liliana IONETE

s.c. U.C.M. Reșița s.a. (societate in reorganizare judiciară, compeny in judicial reorganisation, en redrensement)

Separate Financial Statements on September 30, 2024

(all amounts are given in lei (RON) unless otherwise stated)

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED ON SEPTEMBER 30, 2024

							- 1. Cla
Explanation/Descliption	Registered espital	RevelopHoa reserves	Legal rupervos	Carriad over result representing surplier Trous revaluations 1300 3700	Other reserves	Carrical over respit	Current result a the accounting 1987	Total
	1
Balance on 01 January 2024	601,685,884		99,592,438 1,572,404	275,001,846	16,80,620	(1,388,412,131) (12,483,734)		CD33,802,76
Chenges ba equity - September 30, 2024
Townler of supplar from reveloation seservas		(29,190,991)		23,198,991
Transfir of the result of the accounting your 2023 to the THE POST THE WORD FESCUE						12497301	12,409 732
Account closing - refit shure
of a material of economians comes programments to women withing the narried over result
Met remain of the carrent accompting year							20,079,714	20,079,714
Balunca on Santember 30 2024	601.035.054	70,793,447	- 1972 496	304,260,017	16 085 620	(8,302 821,863)	20,979,714	(376.752 223)

The legal reserves of the Company, castituted in scordance with the provisions of the Commercial Comment to 1,972,406 lei.

The Conguiny's legal reserve is partially constituted in companise Ass, according to which 5% of the annual seconding politi is transfered within the legal reserves until that halance reached. If this reverve is used wholly or parly to cores to castly to cores on onistilitie in any form it becomes taxable in the calculation of corporation tax.

We mention that on 30.09.2024, the Company has not yet reached the maximum level of legal lifelgation.

Judicial Administrator:

EURO INSOL SPRL and VF Insolvență SPRL Conportium

HR and Economic Director HR and Economic Director Offer

s.c. U.C.M. Reşiţa s.a.

(societate în reorganizară, company in judicial reorganisation, en redressement)

Separate Financial Statements on September 30, 2024 (all amounts are given in lei (RON) unless otherwise stated)

STATEMENT OF CASH FLOWS ON 30.09.2024

	RE.	Financial exercise ended on:
Name of the element		30 September 2023	30 September 2024
OPERATING ACTIVITIES
Net profit+Result carried over from correction of	I
accounting errors		(4.902.439)	20.079.714
Adjustments for:
Adjusting the value of tangible and intangible assets	2	1.970,350	1,783,366
Adjusting the value of financial assets	3	1591,4351	13:41
Expenses (revenues) with adjustments for depreciation of current assets	A	(88,067)	(9.250.349)
Adjustments to the provisions for risks and expenses	5	(84.301)
Expenses with the donating granted	6
Revenues from interests and other financial income	7	175.4701	(1.505,250)
Expenses with interests and other financial income	8
Cash flow before changes in working capital (line 1 to 89	9	8,771 3621	11.106.587
Decrease /(Increase) - customers and other assimilated Scounts	10	13,400,7571	5,519,549
Decrease /(Increase) in stocks	11	3,084,604	3.432,000
Decrease (Increase)- supplies and other assimilated accounts	12	1,075,641	124,339,2771
Cash flow from operating activities (row. 9 to 12)	13	(3.011.874)	(4.281.141)
Revenue from interests	16	75,469	1.490.430
(Net increase) / Net decrease in restraint	15	29,823	129,4631
Cash flow from operating activities (row.13 to 15)	16	(2.906.582)	(2.820.174)
INVESTING ACTIVITIES
Cash payment for long-term purchasing of land and other usets	17	111.7161	(15.685)
Proceeds from sales of real estate	18	219.058	67,879,000
Revenues from dividents	19	518, 103	76,394
Net cash used in investing activities (row. 17 to 19)	2817	785,450	67.939.709
FINANCING ACTIVITIES
Discounts of borrowed amounts	21
Net cash used in financing activities (line. 21)	992
Net increase/(Decrease) in cash and eash equivalents (line 17+20+23)	23	(2.121,132)	65.119.535
Cash and cash equivalents at the beginning of the year	94	5,954,786	3,080,834
Cash and cash equivalents at the end of the period	25	3,833,654	68,200,369

Judicial Administrator:

EURO INSOL SPRL and VF Insolvență SPRL Consortium

allar pa

URO

SOL PRI

HR and Economic Director Nicoleta Liliana IONETE

(societate în reorganizare judiciară, company in judicial reorganisation, en redressement)

Separate Financial Statements on September 30, 2024-

(all amounts are given in lei (RON) unless otherwise stated)

Economic - Financial Indicators on 30.09.2024

Indicator	Calculation method	Value
1. Current liquidity	1228	0.272
2. Current assets (lei)	2	99,579,741
3. Current liabilities (lei)	3	445,463,869
4. Level of indebtedness	4-516	ENIA
5. Borrowed capital (lei)	5
6. Capital employed (lei)	6	(377,922,555
7. Turnover ratio of customer debits (days)	7 =8/9 x (365/4x3)	140
8. Average balance of trade receivables (lei)	8	2,654,769
9. Turnover (lei)	0	5.174.014
10. Turnover ratio of fixed assets (days)	10 = 11/12 x (365/4x3)	2,763
11. Fixed assets (lei)	11	32,222,261
12. Turnover (lei)	12	5,174,014

Judicial Administrator:

EURO INSOL SPRL and VF Insolvență SPRL Consortium

HR and Economic Director Nicoleta Liliana IONETE

ECRO INSO!

1. Reporting entity

General information

IAS 1.138 (a), (b), UCM REŞIŢA S.A. - (company in insolvency, en procedure collective) is a joint stock company with the headquarters in Romania.

IAS 1.51(a)-(c) The separate financial statements, in accordance with IFRS, has been prepared for the accounting year ended on September 30, 2024.

The main activity of the Company is the manufacture of engines and turbines (except aircrafts, vehicles and motorcycles) - CAEN Code: 2811.

The Company was incorporated and registered at ONRC based on the Government Decision (GD) no. 1296/1990 completed and modified by GD no. 334/1991, operating under the laws of Romania.

On 30.09.2024, the registered office of UCMR was in Bucharest, Charles de Gaulle Square 15, Charles de Gaulle Plaza Building, 3th Floor, Peles Office, Sector 1, as mentioned in Endorsement no. 592087/15.11.2019, registered at ONRC at no. J40/13628/2011, Fiscal Code RO 1056654, and the administrative headquarters in Resita, Golului Street No. 1.

The main activity of the Company consists in manufacturing and marketing of hydro power units (hydraulic turbines, valves, governors and hydro generators), hydro mechanical equipment, large hydraulic servomotors, bearings and half-bearing shells, spare parts for Diesel engines and others.

The Company provides also services for the design of new constructive solutions or for the rehabilitation and enhancement of the existing ones, as well as specialized engineering services for technical assistance in areas related to its main field of activity.

The main customers are in the hydro power field: S.P.E.E.H. HIDROELECTRICA SA, and S.S.H HIDROSERV S.A, plus ALMET INTERNATIONAL LTD SRL.

The individual financial statements have been prepared starting from the assumption that the Company will continue its business based on to the implementation of the measures set out in the Reorganization Plan confirmed on 01.02.2022.

2. Basis for preparation of separate financial statements

IAS 1.112(a)

2.1 Declaration of conformity

IAS 1.16 The Separate Financial Statements have been prepared in accordance with the provisions of the Order no. 2844/2016 of the Minister of Public Finance, with respect to the approval of Accounting Regulations in compliance with the International Financial Reporting Standards (IFRS) applicable to companies whose marketable securities are admitted to trading on a regulated market (OMPF 2844/2016)

Separate Financial Statements on September 30, 2024 (all amounts are given in lei (RON) unless otherwise stated)

EURO INSOL SPRL and VF Insolvență SPRL Consortium as the Judicial Trustee/Administrator of the Company, undertake the liability for drawing up the Interim Separate Financial Statements on 30.09.2024 and confirm that they are in compliance with the applicable Accounting Regulations and the Company shall conduct its work under the condition of continuity.

2.2 Basis of evaluation

The Company drawn up the Interim Separate Financial Statements for the year ended on September 30, 2024 in accordance with OMPF 2844/2016, as amended and supplemented. These provisions meet the requirements of International Financial Reporting Standards (IFRS) adopted by the European Union (EU), except for IAS 21 The Effects of change in foreign exchange rates on functional currency.

In order to prepare these Separate Financial Statements in accordance with legislative requirements in Romania, the functional currency of the Company is considered to be RON ("Romanian leu").

The Separate Financial Statements presented have been prepared on a historical cost basis.

For all periods up to and including the year ended on December 31, 2011, the Company has prepared the Separate Financial Statements in accordance with the accounting principles generally accepted in Romania (OMPF 3055/2009, as amended).

The Separate Financial Statements for the year ended on December 31, 2012 were the first of this kind that the Company has prepared in accordance with IFRS, year when it was applied also IFRS 1 - "First-time Adoption of IFRS".

These Separate Financial Statements have been not audited.

The Company does not apply IFRS issued and not adopted on 30.09.2024, and cannot estimate the impact of non-application of these provisions on the separate financial statements, and intends to apply these provisions only at their entry into force.

In accordance with IAS 27 "Consolidated and Separate Financial Statements", the Company should present consolidated financial statements that strengthen the investments in subsidiaries. In preparing the consolidated financial statements should be combined the financial statements of the parent company and those of its subsidiaries, item by item, by adding together all similar items of assets, liabilities, equity, revenues and expenses. On September 30, 2024, the Company also holds no subsidiary.

2.3 Functional currency used for presentation

The items included in the separate financial statements of the Company are measured using the currency of the economic environment in which the entity operates ("the functional currency"), that means Romanian leu.

According to IAS 1.51 (d), (e), these separate financial statements are presented in Lei, and all financial information is in Lei, rounded to 0 decimal, unless otherwise stated.

2.4 The use of estimates and professional judgments

Preparation of separate financial statements in conformity with IFRS requires management's use of professional judgments, estimates and assumptions that affect application of accounting policies and the reported amounts of assets, liabilities, revenues and expenses. The actual results may differ from these estimates.

Separate Financial Statements on September 30, 2024 (all amounts are given in lei (RON) unless otherwise stated)

The estimates and assumptions are reviewed regularly. These revisions of the accounting estimates are recognized in the period in which the estimate was reviewed and in future affected periods.

2.5 New International Standards that are not applied by the Company

The Company does not apply certain IFRSs/ IASs or new provisions /modifications /additions / interpretations of them issued by the IASB (International Accounting Standards Board) and not adopted at the date of drawing up the financial statements.

Presentation of separate financial statements

The Company applies IAS 1 - "Presentation of Financial Statements" (2007) revised, which entered into force on January 1, 2009.

As a result, in the "Statement of Changes in Shareholders' Equity" the Company presents to shareholders all amendments thereto.

The comparative information has been reconciled so that they conform to the revised standard. As the impact of change in accounting policy is reflected only on presentation aspects, there is no impact on earnings per share.

IAS 1 "Presentation of Financial Statements" is governing the basis for presentation of financial statements for general purpose, in order to ensure comparability both with financial statements of the entity for previous periods and with the financial statements of other entities.

a) Basis of accounting and reporting in hyperinflationary economies

The currency used by the Company for evaluation and reporting is the "Romanian Leu" ("RON").

IAS 29 - "Financial Reporting in Hyperinflationary Economies", requires that the statements of companies that are reporting in the currency of a hyperinflationary economy should be made in terms of the current monetary unit at the date of the balance sheet and all amounts must be restated in the same conditions. IAS 29 states that reporting of operating results and financial position in local currency without restatement related to inflation is useless, since the money lose their purchasing power so quickly that a comparison between the value of transactions or of other events that occur at different moments, even within the same reporting period, is wrong. IAS 29 suggests that an economy should be considered hyperinflationary if certain conditions are met; one of them being that the cumulative rate of inflation over a period of three years exceeds 100%.

By December 31, 2003 adjustments were made to reflect the application of IAS 29 "Financial reporting in hyperinflationary economies".

Implementation of IAS 29 to specific categories of transactions and balances in the financial statements is presented below:

> Monetary assets and liabilities

Monetary assets and liabilities have not been reassessed for the implementation IAS 29 since they are already expressed in terms of the current monetary unit at the date of the balance sheet.

s.c. U.C.M. Reșița s.a.

(societate în reorganizare judiciară, company in judicial reorganisation, en redressement)

Separate Financial Statements on September 30, 2024 (all amounts are given in lei (RON) unless otherwise stated)

√ Non-monetary assets and liabilities and equity

Equity components have been restated by applying the inflation index for the month in which the assets, liabilities and equity components were initially recorded in the financial statements (the date of purchase or contribution) until December 31, 2003. The remaining non-monetary assets and liabilities are not restated using the inflation index. considering that their value is updated as a result of the application of alternative accounting treatments of evaluation during the previous periods.

b) Estimates and assumptions

Preparation of individual financial statements in conformity with IFRS requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities, of contingent assets and liabilities at the financial statements and of the reported amounts of revenues and expenses registered during the reporting period. The actual results may be different from these estimates. The estimates are periodically reviewed and, if adjustments are required these are reported in the profit and loss account for the period in which they become known.

In the process of applying the Company's accounting policies, the management has made estimates for provisions, impairment of receivables and stocks, which have significant effect on the values stated in the individual financial statements.

c) Registered capital

The shares held by the Company are classified (shown) at nominal values and, in accordance with the Law of Trading Companies (L 31/1990) and the articles of incorporation their total value is to be found in the registered capital.

The dividends on holdings of shares (capital), established under Decision of AGA, are recognized as a liability in the period in which their distribution is approved.

d) Equity papers in affiliated entities

The investments held in affiliated entities are presented in the separate financial statements of the Company at cost less any impairment.

The dividends receivable from affiliated entities are recognized when the Company established the right to receive payment.

e) Tangible fixed assets

Recognition and measurement of fixed assets

The fixed assets, except lands and buildings, are recognized according to the requirements of OMFP 2844/2016 and are shown in the accounts at cost, less the accumulated depreciation and the impairment losses.

The buildings are stated at fair value based on periodic assessments, at least every three years, carried out by independent external evaluators. Any accumulated depreciation at the date of revaluation is eliminated from the gross carrying amount of the asset and the net amount is recorded as revalued amount of the asset.

The buildings are stated at revalued amounts on 31.12.2014 and the lands at revalued amount on 31.12.2011.

If a fixed asset includes significant components that have different useful lives, they are accounted (depreciated) individually.

Subsequent expenses on maintenance and repairs

The expenses with repairs or maintenance of fixed assets are made to restore or maintain the value of these assets and are recognized in the comprehensive income on the date they

Separate Financial Statements on September 30. 2024 (all amounts are given in lei (RON) unless otherwise stated)

are made, while the expenses made in order to improve the technical performance are capitalized and depreciated over the remaining period of depreciation for that fixed asset. Depreciation

The fixed assets are depreciated from the month following the date of purchase or the date of commissioning, as appropriate, using their fiscal lifetime periods.

Depreciation is calculated using the straight-line method over the lifetime of the fixed assets and/or their components, which is accounted separately.

The terms of depreciation used are as follows:

· Constructions	6 - 50 years
Equipment and machinery	2 - 28 vears

· Other installations, tools and furniture 2 - 15 years

The land and fixed assets in progress are not depreciated and the ongoing investments are depreciated from the date of commissioning.

The estimated useful lives and the depreciation method are reviewed periodically to ensure they are consistent with the projected evolution of economic benefits generated by the tangible assets.

Tangible assets are derecognized from the balance sheet when the asset exits the equity or when no benefits are expected from the use of the asset. Losses or gains on disposal/sale of fixed assets are recognized in the statement of the comprehensive income.

f) Intangible assets

Recognition and evaluation

The intangible assets acquired by the Company are recognized and presented at cost, less accumulated depreciation and impairment losses.

Depreciation

Depreciation is recognized in the comprehensive income, on a straight line basis, over the estimated lifetime (service life) of the intangible asset.

Most of the intangible assets recorded by the Company are represented by the software programs, which are depreciated linearly over a period of 3 years.

g) Depreciation of the value for non-financial assets

According to IAS 36 Depreciation of Assets, the value of tangible and intangible assets is reviewed annually to identify circumstances that indicate their depreciation.

Whenever the net value of the asset exceeds its recoverable amount, depreciation of its value is recognized in the statement of the comprehensive income for tangible and intangible assets.

The recoverable amount represents the highest value between the net selling price of an asset and its value in use. The net selling price represents the amount obtainable from the sale of the asset in a normal transaction, and the value in use represents the present value of future cash flows estimated if continuing to use the asset and from its sale at the end of its service lifetime. The recoverable amounts are estimated for individual assets or, if this is not possible, for the cash-generating units. Reversal of impairment losses recognized in previous years may occur when there is an indication that the impairment losses recognized for that asset no longer exist or has decreased; the cancellation shall be recorded as revenue.

Separate Financial Statements on September 30, 2024 (all amounts are given in lei (RON) unless otherwise stated)

h) Financial assets

In accordance with IAS 39 "Financial Instruments: Acknowledgment and assessment", the Company's financial assets are classified into the following categories: held-to-maturity and loans and receivables originated by the Company.

The investments with fixed or determinable payments and fixed maturity, other than loans and receivables originated by the Company, are classified as held-to-maturity.

These financial assets are recognized in the historical cost or at the value determined by their acquisition contract, the cost of acquisition including also the transaction costs, the gains and losses being recognized in the statement of the comprehensive income when the financial assets are derecognized or impaired, as well as through the depreciation process.

Derecognizing of financial assets occurs when the rights to receive cash flows from the asset have expired, or the Company has transferred its rights to receive cash flows from the asset (directly or through a "pass-through" commitment). All normal purchases and sales of financial assets are recognized at the transaction date, the date when the Company commits to purchase an asset. Regular purchases and sales are those that require delivery of assets within the period generally accepted by the regulations or conventions valid on that market. The Company has no financial assets at fair value registered in the profit and loss account or financial assets available for sale.

i) Financial debts

In accordance with IAS 39 "Financial Instruments: Recognition and Measurement", the Company's financial debts are classified into the following categories: loans, trade debts and other debts.

The trade debts are stated at nominal amounts payable for goods or services received. Short and long term loans are initially recognized at the nominal value, representing the amount received under this head, not including the specific costs (fees, interest).

The gains and losses are recognized in the statement of the comprehensive income on derecognizing of debts, as well as through the depreciation process. Derecognizing of financial debts occurs if an obligation is fulfilled, canceled or expires. The financial assets and debts are compensated only if the Company has a legally enforceable right to make compensations and intends either to settle on a net basis or to realize the asset and settle the liability simultaneously.

i) Debts related to leasing contracts

Financial leasing contracts

The leasing contracts in which the Company takes substantially the risks and benefits of ownership are classified as financial leasing. The amounts due are included in the short or long term debts, the elements of interest and other costs of financing being recorded in the profit and loss account during the contract period. Assets held under the financial leasing contracts are reflected in the accounting system using the accounts of tangible and intangible assets and are depreciated over their useful lifetime.

The rates paid to the lessor plus the interest is highlighted as a debt in the account 406 "Debts from operations of financial leasing".

Operating leasing contracts

The leasing contracts in which a significant portion of the risks and benefits of ownership are assumed by the lessor are classified as operating leasing contracts, the payments (expenses) made under such contracts being recognized in the comprehensive income on a straight-line basis during the contract period, the leased assets are recorded in the accounting system of the lessee, in the off-balance sheet accounts.

Separate Financial Statements on September 30, 2024 (all amounts are given in lei (RON) unless otherwise stated)

k) Transactions in foreign currency

Functional currency and presentation currency: the financial statements of the Company are prepared using the currency of the economic environment in which operates.

The functional currency and the currency used for presentation of financial statements is the Romanian leu ("RON").

Transactions in foreign currency are translated into RON applying the exchange rate at the transaction date. The monetary assets and liabilities denominated in foreign currencies are revalued in RON at the exchange rate at the balance sheet date.

The gains and losses resulting from differences in foreign exchange rate, realized or unrealized, are recorded in the statement of the comprehensive income.

The exchange rates on September 30, 2023 and 2024 are as follows:

Currency	30 September 2023	30 September 2024
RON/EUR	4.9746	4.9756
RON/USD	4.6864	4.4451
RON/GBP	5.7433	ર જિરેલ્ડ
RON/CHF	5.1446	5.2677

l) Stocks

The stocks are recorded in the accounting system at the minimum value between the cost and the net realizable value.

The net realizable value represents the estimated selling price to be received under ordinary course of activity, less the costs related to sell.

The value of stocks is based on the weighted average cost, including expenses incurred in acquiring them and bringing to the current location, and in the case of stocks produced by the Company (semi-finished and finished goods, work in progress); the cost includes an appropriate percentage from the indirect costs, depending on the organization of production and the current activity. The inventory method used is that of "perpetual inventory".

At the annual inventory of stocks, the Company identifies the stocks that are not intended for sale contracts in progress or have not been identified as useful in current manufacturing costs or future projects.

The Company's management analyzes and proposes/decides the adjustments (depreciation) of stocks according to the accounting policy approved in this respect and the results of the inventory.

The inventory of stocks shall be made according to the internal procedure and the inventory manual, related both to the needs of the Company and the law in force.

m) Receivables

Trade receivables are stated at their nominal value less the adjustments for their depreciation, the adjustments that are carried out where there is objective data and information about the fact that the Company will not be able to collect all amounts in due time.

The Company records depreciations of 100% for trade receivables older than 360 days and for those in dispute.

Separate Financial Statements on September 30, 2024 (all amounts are given in lei (RON) unless otherwise stated)

n) Cash and cash equivalents

The cash includes the cash in hand and in bank accounts. Cash equivalents are short-term investments, highly liquid, which can be quickly converted into a sum of money, with the original maturity of maximum three months and have an insignificant risk of change in value.

Records of them are kept on banks, currencies, respectively on pay desks and cash advances holders being evaluated, in case of foreign currency by using their exchange rate (reference rate) with the national currency (RON) released by the National Bank of Romania (BNR).

o) Debts

The debts are initially recognized at the fair value of the consideration to be paid and include the payable amounts, invoiced or not, for goods, works and services.

q) Loans

The costs related to loans are recorded as an expense in the period in which they occur, except the case when the loans are for the construction of assets that are qualified for capitalization. The Company classifies its loans on short-term and long-term, depending on the maturity specified in the credit agreement.

The loans are initially recognized at the net value of withdrawals. They are subsequently carried at the depreciated cost, using the method of effective interest rate, the difference between the value of withdrawals and the redemption value being recognized in the net profit of the period, during the entire loan period.

p) Government grants

Government grants are recognized when there is reasonable assurance that the grant will be received and all conditions attached will be satisfied. When the grant relates to an expense item, it is recognized as income over the period necessary to correlate, on a systematic basis, the grant with the costs to be offset. When the grant relates to an asset, it is recognized as deferred income and taken to income in equal amounts over the expected life of the related asset.

When the Company receives non-monetary grants, the asset and the grant are recorded at gross and nominal values and they are reflected in the overall result over the expected life and the consumption rate of the benefit afferent to the support asset, in equal annual installments. When loans or similar forms of assistance are provided by the government or similar institutions at an interest rate below the rate applicable on the market, the effect of this favorable interest is regarded as additional government grant.

r) Benefits of employees

Short-term benefits:

The Company contributes for its employees by paying contributions to Social Security (retirement, health) giving them some benefits upon retirement, according to the period of work in the company (a reward up to 4 gross salaries per Company for a seniority over 25 years in UCM Resita, respectively up to 2 average gross salaries per Company for a seniority between 10-25 years in UCM Resita, respectively 1 average gross salaries per

Separate Financial Statements on September 30, 2024 (all amounts are given in lei (RON) unless otherwise stated)

company for a seniority between 5-10 years in UCM Resita). These contributions are recognized as an expense when the services are rendered.

In addition to the grants and allowances provided expressly by law, the Company grants to its employees the following benefits:

• · granting of bereavement benefits representing four average gross wages per Company upon the death of an employee of the Company and one average gross salary per company in case of death of the husband (wife) or of a first degree relative (parents, children);
• · granting of two average gross wages per Company for the birth of each child;
• · granting of one average gross salary per to the dismissal of an employee for whom it was issued a decision by the relevant medical expertise finding physical and/or mental inability thereof, which does not allow him to fulfill his duties appropriate to the position held.

As of 07.06.2024 the Company will no longer grant the benefits listed above to employees.

Post employment benefits -plan for retired pay:

The Company does not contribute to any other pension plans beyond its existing legal responsibilities, does not offer post-retirement benefits and as such has no future obligations of this nature for its employees.

s) Profit tax

The tax on profit or losses of the year comprises current tax and deferred tax. The assets and liabilities for current profit tax, for current and prior periods, are recognized at the value expected to be reimbursed by or paid to the taxation authorities.

The current profit tax is calculated in accordance with tax legislation in force in Romania and is based on the results reported in the statement of the comprehensive income of the Company, prepared in accordance with local accounting standards, after adjustments performed for tax purposes. The current profit tax is applied to the accounting profit, as adjusted in accordance with tax legislation at a rate of 16%.

The tax losses registered up to December 31, 2023 may be carried forward for a period of 7 (seven) years.

The deferred profit tax reflects the tax effect of temporary differences between the carrying amount of assets and liabilities used for financial reporting purposes and the tax values used in order to calculate current profit tax. The deferred profit tax, recoverable or payable, is determined using tax rates that are expected to be applicable in the year in which the temporary differences will be recovered or settled. Assessment of the deferred profit tax, payable or recoverable, reflects the tax consequences that would follow from the manner in which the Company expects to realize or settle the carrying amount of its assets and liabilities at the date of the balance sheet.

The assets and liabilities from the deferred tax are recognized regardless of when the temporary differences are likely to be realized.

The assets and liabilities from the deferred tax are not updated. The assets from the deferred tax are recognized when it is probable that there will be sufficient future taxable profits against which the deferred tax can be used. The liabilities from the deferred tax are recognized for all taxable temporary differences.

Separate Financial Statements on September 30, 2024 (all amounts are given in lei (RON) unless otherwise stated)

ş) Recognition of revenues and expenses

The revenues from sale of goods are recognized in the comprehensive income at the date when the risks and benefits of ownership on the goods are transferred to the buyer which, in most cases, coincides with the date of invoice (delivery) thereof.

The revenues from the goods sold (delivered) and services rendered are recognized on an accrual basis, respectively at the date of delivery/provision (transfer of ownership) to the customer.

The revenues from interest are recognized in installments (proportionally) as they are invoiced/ are generated according to contracts/agreements under which the loans were granted on an accrual basis.

The revenues are recognized when there is no significant uncertainty regarding recovery of the counter benefits due and associated costs or possible returns on the assets.

The expenses are classified and recognized based on the principle of their connection to revenues, respectively their allocation on products, services which make these revenues.

The production cost of stocks is followed on projects and, within these projects, on each individual product and includes direct costs related to production (direct materials, direct labor, and other direct costs attributable to products, including design costs) and the share of indirect costs of production allocated rationally as related to their manufacture.

The general administrative expenses, selling expenses and unallocated share of fixed overhead products (indirect production costs that are relatively constant, regardless of the volume of production) are not included in the cost of stocks but are recognized as expenses in the period in which they occurred.

The Company applies the principle of separation of accounting years for the recognition of revenues and expenses that are classified in three categories (operational, financial and exceptional).

t) Fair value of financial instruments

The management believes that the fair values of the Company's financial instruments are not significantly different from their carrying values, due to the short terms of settlement, reduced transaction costs and/or the variable interest rate that reflects current market conditions.

t) Provisions

A provision is recognized when, and only when the Company has a current obligation (legal or constructive) as a result of a past event and if it is probable (more likely to succeed than not be realized) as an output of resources embodying economic benefits, will be required to settle the obligation, and it can make a reasonable estimate of the amount of the obligation. The provisions are reviewed at the end of each accounting year and are adjusted to reflect the current best estimate.

When the effect of money value in time value is significant, the value of the provision is the present value of the expenses required to settle the obligation.

u) Contingent debts or assets

The contingent debts are not recognized in the financial statements. They are disclosed in notes, unless the case when the possibility of an outflow of resources embodying economic benefits is very small.

Separate Financial Statements on September 30, 2024 (all amounts are given in lei (RON) unless otherwise stated)

A contingent asset is not recognized in the financial statements but is disclosed in notes when an inflow of economic benefits is probable.

v) Subsequent events

The events subsequent to the date of the balance sheet are those events, favorable and unfavorable, that occur between the date of the balance sheet and the date when the financial statements are authorized for issue.

The events subsequent to the balance sheet that provide additional information about the Company's position at the date of the balance sheet are subsequent events that led to adjustment of the financial statements.

The events subsequent to the date of the balance sheet that provide information about the conditions that arose after the balance sheet date don't require adjustment of the financial statements and are disclosed in the notes, if they are significant.

w) Affiliated parties

A party is considered to be affiliated if by ownership, contractual rights, and family relationship, or otherwise, has the power to control directly or to influence significantly the other party.

Affiliated parties include also individuals such as main owners, management and members of the Board of Directors and their families.

According to the International Financial Reporting Standards, an entity is affiliated to a reporting entity if it meets any of the following conditions:

• The entity and the reporting entity are members of the same group;

• An entity is an associate or joint venture of the other entity;

• Both entities are joint ventures of the same third party;

• An entity is a joint venture of a third entity and the other is an associate of the third entity:

• The entity is a post-employment benefit plan for the benefit of the reporting entity's employees or an entity affiliated to the reporting unit. If the reporting entity itself represents such a plan, the sponsoring employers are also affiliated with the reporting entity;

• A person who has control or joint control over the reporting entity, has significant influence over the entity or is a member of the key personnel of the entity's management:

• The entity is controlled or jointly controlled by a person or an affiliate member of its family, if that person:

  • " Has control or joint control over the reporting unit;
  • " Has significant influence over the reporting entity, or
  • Is a member of the key management personnel of the reporting unit or of a parent company of the reporting entity.

x) Correction of accounting errors

Accounting errors found in the financial statements at the date of their drawing up may refer either to the current accounting year or in previous accounting years, correction will be performed at the date when becoming aware of them.

When recording the operations required to correct the accounting errors, are applied the provisions of IAS 8 - "Accounting Policies, Changes in Accounting Estimates and Errors",

Separate Financial Statements on September 30, 2024 (all amounts are given in lei (RON) unless otherwise stated)

stating that the entity must correct retrospectively significant errors of the period in the first set of financial statements which publication was approved after their discovery, by means of: restating the comparative amounts for the prior period presented in which the error occurred or if the error occurred before the first prior period.

According to OMFP 2844/2016, correction of errors related to previous accounting years does not require publication of the revised yearly financial statements for that accounting year, and their correction is performed based on the retained earnings account, without affecting the result of the current accounting year.

For the correction of the errors related to the current financial year, wrong accounting entries are corrected, before the approval of the annual financial statements, by reversing (the registration in red/with the minus sign or by the method of the reverse registration) of the incorrectly recorded operation and, at the same time, the corresponding recording of the operation in question.

y) Reserves

The Company creates legal reserves according to Art. 183 of Law 31/1990.

Given the provisions of OMFP 2844/2016, the Company creates legal reserves from the profit of the entity, within the quotas and limits set by the law, but also from other sources provided by the law.

The Company considered necessary a change in the accounting policy for recognizing the surplus from revaluation of tangible fixed assets in order to incorporate it into a separate reserve account, as the assets are used by the Company (in proportion as they are depreciated), respectively when the assets are out of the accounting records.

Thus, starting with 2010, it was decided to recognize as realized the differences from revaluation of fixed assets in proportion as they are depreciated.

3. Significant transactions or events

Due to the context in which UCM Resita SA finds itself, it has not been able to carry out. according to the Reorganization Plan, any activities in the blue hall and SME2, therefore, efforts are being made to sell these assets as outlined in the Reorganization Plan.

In the third quarter of this year, the implementation of the measures provided in the Reorganization Plan focused mainly on organizing auctions for the sale of the Electric Machines II Section, in accordance with offer no. 2507/11.07.2024, made by SC UZIMET INDUSTRY SRL and the assets offered by UAT Resita Municipality through offer no. 58178/01.07.2024.

In this regard, on 29.07.2024, the Judicial Administrator prepared the sale regulations for the assets that are the subject of these offers and submitted them for approval to the Creditors' Assembly, which met on 20.08.2024.

The agenda of this meeting also included the sale of the Screw Factory building in the town of Anina, a property listed as historical monument code LMI: CS-II-m-A-10969.02, dated in 1872.

Separate Financial Statements on September 30, 2024 (all amounts are given in lei (RON) unless otherwise stated)

According to Minutes no. 552/20.08.2024, the Creditors' Assembly approved the sale regulations presented by the Judicial Administrator at the meeting from 20.08.2024.

The Judicial Administrator organized on 30.08.2024, at 11:00, on the UNPIR online auction platform in the industrial properties section a public ascending auction for the bulk sale of the Electric Motors II Section asset - Câlnicel platform, consisting of land, buildings, machinery, installations, means of transport, furniture, and IT equipment, as well as fixed assets in the nature of inventory items, designs, and models, the property of UCM Reșița.

Although SC UZIMET INDUSTRY SRL purchased the specifications booklet, the bidder did not submit the required guarantee to participate in the auction, nor was another specifications booklet purchased.

The Judicial Administrator organized a new public ascending auction for the bulk sale of the Electric Motors II Section asset - Câlnicel platform on 26.09.2024, at 11:00, on the UNPIR platform.

Once again, no one participated in the auction.

Regarding the assets that were the subject of offer no. 58178/01.07.2024 issued by UAT Reşiţa Municipality, bades on discussions, it was agreed to organize three distinct auctions for each objective, at certain intervals, starting from October.

On 08.07.2024, the Company received Evaluation Report DRS 1242 issued by evaluator Darian DRS for the components of the hydrogenerator related to the Stejaru Power Plant small hydrogenerator HG 1 and HG 2 in stock, which was presented to the Creditors' Committee convened on 08.08.2024. The evaluation was necessary for the valorization of these components, considering the interest expressed by SPEEH Hidroelectrica SA.

On 19.09.2024, the Company received and registered Notification no. 591 sent by UCMH regarding the identification, of certain quantities of waste oils and expired lacquers and paints, resulting from activities carried out by UCM Resita before the transfer, based on an inspection made by the Environmental Guard, in the acquired perimeter.

To dispose the indicated waste types and quantities within the Notification, the Company signed a contract with a firm specialized in such activities, and the handover of these materials are to be proceed.

The Creditors' Committee convened by the Judicial Administrator on 06.09.2024 approved the engagement of a conventional representative in case no. 1291/62/2023, pending before the Brasov Tribunal, Civil Section I, in which UCM Resita S.A. is the plaintiff, the subject of the case being a tort liability action.

At the hearing on 17.09.2024 in case no. 16447/3/2024, regarding the complaint filed by UAT Resita Municipality against the Report on the distribution of the price received in the reorganization procedure of U.C.M. Resita SA published in the Insolvency Procedures

Separate Financial Statements on September 30. 2024 (all amounts are given in lei (RON) unless otherwise stated)

Bulletin no. 8714 dated May 10, 2024, the court admitted the exception of inadmissibility of the complaint and rejected the complaint filed by UAT Resita, with the right of appeal within 7 days of notification.

As of the date of this report, there was no information regarding the appeal.

Since the Company is no longer conduction activities, the 32 employees with active contracts, working part-time, are engaged in activities related to the conservation and administration of assets, the collection of rents for housing and other rental spaces owned by the debtor, specific accounting record activities, environmental protection, as well as all activities necessary to comply with legal and contractual obligations that UCM Reșița S.A. has.

The entry into force of Law 360/2023 regarding the public pension system on 01.09.2024 has led to an increase in the number of requests for certificates in recent months.

Thus, as of 30.09.2024, there were 1,540 unresolved requests at the Company level, noting that one request may involve the issuance of 3-4 different types of certificates. It should also be noted that for each year worked, data must be manually collected from 12 payrolls, and most requests come from individuals who have worked their entire 35-40 year careers at UCM Reşiţa.

Given the small number of employees and their working hours (2 hours/day), it is impossible to resolve requests within the legal timeframe of 15 days.

In this context, the Judicial Administrator has taken steps to hand over the personnel archive to a specialized firm, for which various offers for services of takeover, organization, and storage of the archive according to current legal norms have been requested.

For the designation of a service provider for the takeover, organization, and storage of the archive, the offers were presented to the Creditors' Committee met on 08.08.2024.

According to Minutes no. 542/08.08.2024, the Creditors' Committee did not designate a service provider for processing and storing the archive, requesting a postponement of the discussion, continuing the local selection of offers and communicating them to the creditors.

The Judicial Administrator has requested offers from archival service providers in the Resita area, intending to reconvene the meeting to present them to creditors for designation.

4. Further events

According to the sale regulations approved by the Creditors' Assembly on 20.08.2024, the Judicial Administrator organized the sale procedure in bulk through a public ascending auction with bidding and a rising price for the Objective Asset "Villas" consisting of land,

Separate Financial Statements on September 30, 2024 (all amounts are given in lei (RON) unless otherwise stated)

buildings, villas, and movable goods, the property of UCM Resita. The auction took place on 16.10.2024, at 11:00, at the headquarters of the judicial administrator located in Bucharest, Costache Negri Street no. 1-5, floor. 3, Opera Center Building, sector 5. The starting price of the auction for the bulk valorization of the Asset with all components mentioned in Annex 4 was 369,915 Euros (excluding VAT).

The auction was awarded to the only participant, UAT Resita Municipality. On 21.10.2024, UAT Reşita submitted a request to the Company for payment in installments, in 10 equal rates, of the price difference in the amount of 332,923.50 euros, remaining after the payment of the 10% guarantee of the asset's value.

Because the acceptance of this request is being possible only by amending the sale regulations approved by the Creditors' Assembly on 20.08.2024, the Judicial Administrator convened the Creditors' Assembly, which, according to Minutes no. 701/29.10.2024, approved the installment of the price difference in 10 equal monthly payments that UAT Resita Municipality will pay from November 2024 to August 2025.

Since no one participated in the first two auctions, on 25.10.2024. the Judicial Administrator announced the organization of a new ascending public auction for the bulk sale of the Electric Motors II Section asset - Câlnicel platform, which will take place on 07.11.2024, at 11:00, on the UNPIR online auction platform in the industrial properties section.

Based on a complaint made by a former employee regarding the non-compliance with the deadline set by the Labor Code for issuing the requested certificates, from 22-25.10.2024, the Company was subject to a control made by the Caras-Severin Territorial Labor Inspectorate.

Through Minutes no. 37215, the labor inspection authority imposed two measures on the Company:

i. to issue the certificates requested by the complainant by 04.11.2024 ii. to respond to all requests for issuing certificates registered by the date of inspection until 31.12.2024.

The first measure was fulfilled by 29.10.2024, and the Company notified the ITM about this through address no. 668/UCMR/31.10.2024.

Regarding the fulfillment of the second measure, we reiterate briefly what was already mentioned, namely that the Company cannot respond to all requests, considering, on one hand, the very high number of requests, and on the other hand, the small number of employees specialized in data search, as well as their working hours of 2 hours/day. During October, 10 requests were resolved, for which about 30 certificates were issued, and 71 new requests were registered. Thus, on October 31, there were 1,601 unresolved requests, which could generate the issuance of a much larger number of certificates. depending on the requests in each application (seniority certificate, gross salary, bonuses, etc.)

Separate Financial Statements on September 30, 2024 (all amounts are given in lei (RON) unless otherwise stated)

In this context, it is necessary to hand over the personnel archive to a specialized firm; thus, the Judicial Administrator reconvened the Creditors' Assembly for 15.11.2024, with the agenda to present offers and designate a service provider for the takeover, organization, and storage of the archive according to current legal norms.