Sinteza S.A.

Quarterly Report • May 15, 2024

SINTEZA S.A. Sos. Borsului nr. 35 410605 ORADEA - ROMANIA

Phone no .: 0259 456 116 Phone no .: 0259 444 969 Fax no .: 0259 462 224 E-mail: sinteza@sinteza.ro www.sinteza.ro

Tax code: RO 67329 No. at the Trade Register Office - Bihor: J.05/197/1991

BANK: UNICREDIT BANK ACCOUNT IN RON: RO64BACX0000000484374000

QUARTERLY REPORT ACCORDING TO ASF REGULATION NO.5/2018

Date of report: Name of the company: Headquarters: Phone: Fax: Tax Identification Code: Number of registration in the Commercial Register: Subscribed and paid capital: Regulated market where the issued securities are traded:

31.03.2024 SINTEZA S.A 410605 Oradea,Borşului, road 35 40 259 456 116 40 259 462 224 67329

J/05/197/1991 9.916.888,50 RON

BUCHAREST STOCK EXCHANGE

This Quarterly Report includes:

• 1) The financial statements on 31.03.2024, prepared in accordance with International Financial Reporting Standards (IFRS).
  • Statement of financial position on 31.03.2024
  • Statement of Comprehensive Income on 31.03.2024
  • Statement of the modification shareholders' equities on 31.03.2024
  • Cash flow statement on 31.03.2024
• 2) Notes to the financial statements ended on 31.03.2024
• 3) Economic and financial indicators specified in Appendix 13 A of ASF Regulation No.5 / 2018.

Note that first quarter 2024 financial statements were not audited.

SINTEZA SA ORADEA informs the investors that Q1 REPORT is available for consultation at the company's headquarters in Oradea, Borşului Street No. 35, daily from 9 to 12, on the company's website www.sinteza.ro , as well as in link below, starting on 15.05.2024

GENERAL MANAGER

1. Financial statements on 31.03.2024

Individual and consolidated Financial Statements on 31.03.2024
----------------------------------------------------------------	--

INDICATOR	INDIVIDUAL		CONSOLIDATED
	31.12.2023	31.03.2024	31.12.2023	31.03.2024
Tangible assets
Freehold land and land improvements	14,737,009	14,734,797	14,737,009	14,734,797
Buildings	11,515,309	11,372,151	11,515,309	11,372,151
Technical installations and transport means	9,881,254	10,726,696	9,881,254	10,726,696
Furniture, office automation equipments	69,154	62,823	69,154	62,823
Tangible assets in progress	1,065,604	167,239	1,065,604	167,239
Advance payments for tangible assets
Total of tangible assets	37,268,330	37,063,706	37,268,330	37,063,706
Intangible assets
Concessions, patents, licences, trademarks	52,390	42,945	52,390	42,945
Intangible assets in progress
Shares owned at branch offices and other fixed securities	3,295	3,295	6,195	6,195
Rights to use the assets leased	71,898	62,624	71,898	62,624
Total of intangible assets	37,395,913	37,172,570	37,398,813	37,175,470
Current assets
Stocks	2,759,880	321,537	2,759,880	321,537
Trade receivables and other receivables	1,052,742	163,472	1,052,757	163,487
Accrued expenses	99,828	424,552	99,828	424,552
Cash and cash equivalent	223,168	319,584	224,033	322,072
Assets classified as being held for sale	1,999,171	1,999,171	1,999,171	1,999,171
Total of current assets	6,134,789	3,228,316	6,135,669	3,230,819
Total of assets	43,530,702	40,400,886	43,534,482	40,406,289
Shareholders' equities
Share capital	9,916,889	9,916,889	9,916,889	9,916,889
Share premiums
Reserves	30,686,182	30,686,182	32,125,420	32,125,420
Result of the year	-10,719,506	-2,739,081	-10,724,863	-2,740,455
Result carried forward	-1,482,584	-12,202,090	-4,691,722	-15,416,586
Other elements of shareholders' equities	-540	-540	-540	-540
Minority interests			-4,183	-4,185
Total of shareholders' equities	28.400.441	25,661,360	26,621,001	23,880,543
Long-term liabilities
Long-term loans and other liabilities	45,691	39,228	45,691	39,228
Deferred income
Provisions
Deferred tax liabilities	3,496,076	3,496,076	3,496,076	3,496,076
Total of long-term liabilities	3,541,767	3,535,304	3,541,767	3,535,304
Current liabilities
Short-term loans	5,160,720	5,266,305	5,160,720	5,266,305
Trading liabilities and other liabilities, including derivatives
Deferred income	6,108,938	5,758,600	7,892,158	7,544,820
	197,811	58,292	197,811	58,292
Provisions	121,025	121,025	121,025	121,025
Liabilities classified as being held for sale Total of current liabilities	11,588,494	11,204,222	13,371,714	12,990,442
Total of liabilities	15,130,261	14,739,526	16,913,481	16,525,746
Total of shareholders' equities and liabilities	43,530,702	40,400,886	43,534,482	40,406,289

Statement of the individual and consolidated overall result on 31.03.2024

	INDIVIDUAL		CONSOLIDATED
INDICATOR	31.03.2023	31.03.2024	31.03.2023	31.03.2024
Continuous activities
Income	3,624,665	2,176,111	3,624,665	2,176,111
Other income	11,558	9,024	11,558	9,024
Changes in inventories	1,923,613	-2,419,844	1,923,613	-2,419,844
Total of operating income	5,559,836	-234,709	5,559,836	-234,709
Expenses related to inventories	3,029,495	72,186	3,029,495	72,186
Expenses related to utilities	1,104,985	298,656	1,104,985	298,656
Expenses with the employees' benefits	1,575,862	1,278,292	1,577,044	1,279,567
Amortization and depreciation of fixed assets	637,241	214,183	637,241	214,183
Gains (-)/losses from the assignation of fixed
assets (+)
Value adjustment of current assets	101	7,182	101	7,182
Adjustments related to provisions
Other expenses	754,342	553,476	754,491	553,578
Total of operating expenses	7,102,026	2,423,975	7,103,357	2,425,352
Result of the Operating Activities	-1,542,190	-2,658,684	-1,543,521	-2,660,061
Financial income	30,869	6,982	30,869	6,982
Financial expenses	131,159	87,379	131,159	87,379
Net financial result	-100,290	-80 397	-100,290	-80,397
Result before the taxation	-1,642,480	-2,739,081	-1,643,811	-2,740,458
Expense with the current income tax
Expenses with the deferred income tax
Deferred income tax-related income
Result of the Continuous Activities	-1,642,480	-2,739,081	-1,643,811	-2,740,458
Minority interests			3	3
Total of the overall result afferent to the
period	-1,642,480	-2,739,081	-1,643,808	-2,740,455

31.03.2024
Modification resources of the shareholders' equities	capital Share	Share premi ums	instrume ssued capital nis	Other equity	elements of cumulative the overall value. To those result The	Result carried forward	reserves. Reeval	reservations Other	share Own (-) ഗ	profit or holders olders'e quity in compan Attribut loss (-) shareh parent to the able the of	(-) Interim dividends	Other elements of the overall result Minority interests Cumulative value.	Minority interests Other items	Total
0	ﺳﮯ	ਟ	ಲ್ಲ	7	ഥ	9	1	8	ರ	10	11	12	13	14
Opening balance (before restatement)
The effect of error corrections
The effect of changes in accounting policies
Opening balance (current period)	9.916.889				(10.719,506)	(1,482,584)	26,582,348	4.103.834	(540)					28,400,441
Ordinary bond issues
Issues of preferred shares
Issues of other equity instruments
Exercising or expiring other issued capital instruments
Conversion of liabilities into shareholders' equity
Capital reduction
Dividends
Buying own shares
Sale or cancellation of own shares
Reclassification of financial instruments from equity into debt
Transfers between equity components					10,719,506	(10,719,506)
Increases or (-) decreases in equity resulting from combinations of activities
Share -based payments
Other increases or (-) decreases in equity
Total overall result for the year					(2,739,081)									(2,739,081)
Closing balance (current period)	9,916,889				(2,739,081)	(12,202,090)	26,582,348	4,103,834	(540)					25.661.360

Statement of the modifications in the individual shareholders' equities on

31.03.2024
Modification resources of the shareholders' equities	Share capital	Share premi ums	instrume ssued capital nts	equity Other	those elements The cumulative of the overall value. To result	Result carried forward	reserves. Reeval	reservations Other	action Own (-) ട്	profit or loss shareholder Attributable s'equities in holders of the parent (-) to the company	Inte den rim divi (-) ds	the overall result Other elements of Curmulative value. Minority interests	Other items Minority interests	Total
O	ﺎ	ਟ	ന്	র্ব	ಗು	9	L	8	6	10	11	12	13	14
Opening balance (before restatement)
The effect of error corrections
The effect of changes in accounting policies
Opening balance (current period)	9.916.889				(10.724.863)	(4,691,722)	26.618.284	5,507,136	(540)			(4.183)		26,621,001
Ordinary bond issues
ssues of preferred shares
Issues of other equity instruments
Exercising or expiring other issued capital instruments
Conversion of liability into shareholders' equity
Capital reduction
Dividends
Buying own shares
Sale or cancellation of own shares
Reclassification of financial instruments from equity into debt
Transfers between equity components					10,724,863	(10,724,863)
Increases or (-) decreases in equity resulting from combinations of activities
Share -based payments
Other increases or (-) decreases in equity												(3)		(3)
Total overall result for the year					(2,740,455)									(2,740,455)
Closing balance (current period)	9,916,889				2,740,455)	(15,416,586)	26,618,284	5,507.136	(540)			(4,185)		23,880,543

Statement of the modifications in the consolidated shareholders' equities on

S

Individual cash flow statement on 31.03.2024

	3 103 20743	31 03 2072
Cash flows from operating activity
Receipts from sales to customers	4,973,427	2,794,258
Other receipts (including net VAT refunds)	111,247	7,272
Payments to suppliers	6,771,966	1,535,505
Payments of net wages	933,470	814,453
Payments to budgets	35,982	321,863
Other payments	120,561	66,327
Net cash from operating activities	-2,777,305	63,382
Cash flows from investments activities
Payments for acquisition of fixed assets
Receipts from sales of tangible fixed assets Interest received
Net cash from investment activities	0	0
Net cash from financing activities
Proceeds from loans	2,303,772	229,339
Interest paid and loan refunds	524,066	196,305
Dividends paid		0
Net cash from financing activities	1,779,706	33,034
Net increase/ decrease) of cash	-997,599	96,416
Cash and cash equivalent at the beginning of the period of
time	1,214,206	223,168
Cash and cash equivalent at the end of the period of time	216,607	319,584

• lei -

Consolidated cash flow statement on 31.03.2024

		- (મ) -
	31 03 22073	31.03.2024
Cash flows from operating activity
Receipts from sales to customers	4,973,427	2,794,258
Other receipts (including net VAT refunds)	111,247	10,272
Payments to suppliers	6,771,966	1,535,505
Payments of net wages	934,179	815,263
Payments to budgets	36,389	322,328
Other payments	120,710	66,429
Net cash from operating activities	-2,778,570	65,005
Cash flows from investments activities
Payments for acquisition of fixed assets
Receipts from sales of tangible fixed assets
Interest received
Net cash from investment activities	0	O
Net cash from financing activities
Proceeds from loans	2,303,772	229,339
Interest paid and loan refunds	524,066	196,305
Dividends paid
Net cash from financing activities	1,779,706	33,034
Net increase/(decrease) of cash	-998,864	98,039
Cash and cash equivalent at the beginning of the period
of time	1,217,844	224,033
Cash and cash equivalent at the end of the period of time	218,980	322,072

2. Notes to the financial statements ended 31.03.2024

The entity reported:

SINTEZA S.A. is headquartered Oradea, Borsului Road No.35, Registration No. J 05/197/1991 T. It is a joint stock company and operates in Romania in accordance with Law No.31 / 1990 on commercial companies.

The activity of the Company is based on the production and marketing of basic organic chemical products - CAEN code 2014.

The Company's shares are listed on the Bucharest Stock Exchange, Standard category , with the indicative ST7

On this, the company is owned by the following shareholders:

No.	Designation / Name	Owned percentage
	FIA-BT Invest 1	33,8898
2	PASCU RADU	31.1597
3	Alternative Investments Company with private equity - Roca Investments S.A.	18.0000
4	Other physical and judicial entities	16,9505
	Total	100,0000

Evidence shares and shareholders is held according to the law, by Depozitarul Central S.A. Bucharest

Presentation of Financial Statements

The individual financial statements are presented in accordance with International Financial Reporting Standards requirements (IFRS).

Functional and presentation currency

The functional currency is the leu chosen. The financial statements are presented in RON.

Significant accounting policies

The Company organizes and manages financial accounting, according to the Accounting Law no. 82/1991, with subsequent amendments and IFRS

Financial accounting provides a chronological and systematic recording, processing, publish and maintain information about the financial position, financial performance and other information related to the work.

Transactions in foreign currencies

Operations in foreign currency are recorded in RON at the exchange rate on the date of the transaction.

At the end of each month, the liabilities in foreign currency are valued at the exchange rate of the currency market, announced by the National Bank of Romania in the last working day of the month in question.

Financial instruments

The company owns the non-derivative financial assets: trade receivables, cash and cash equivalents.

Tangible assets

Tangible assets are assets that:

[] are held by a company for use in the production of goods or services, for rental to others or for administrative purposes; and

[] are used over a period longer than one year.

Production cost includes direct costs related to the production assets such as direct materials, energy consumption for technological purposes, the costs of salaries, contributions and other legal related expenses, arising directly from the construction of property and equipment, costs of site preparation costs initial delivery and handling, installation and assembly costs, testing costs for the proper functioning of the asset, professional fees and fees paid in connection with the asset, the cost of designing products and obtain necessary permits;

Subsequent expenditure on a tangible asset is recognized:

as an expense in the period in which they were incurred if they are considered repairs or purpose of these expenditures is to ensure continued use of the asset while maintaining the original technical parameters; or

D as part of the asset, as subsequent expenses, if the conditions to be considered investments on fixed assets.

Depreciation of tangible assets is calculated starting with next month

commissioning and until full recovery of their input.

The Company calculated and accounted for depreciation of tangible leased, rented or management location.

Land is not depreciated.

Intangible assets:

Within intangible assets include:

0 up costs;

development costs;

[] concessions, patents, licenses, trademarks, rights and similar assets, except those created by society;

0 goodwill;

other intangible assets;

[ advance payments for intangible assets;

[ intangible assets in progress.

Amortization of intangible assets is allocated on a systematic basis over the best estimate of its useful life.

The method of amortization of intangible assets is a straight.

Items of stocks

Registration in inventory accounting entry shall be made after the transfer of risks and rewards.

Trade discounts granted by the supplier and included in the purchase invoice reduces the acquisition cost of goods.

In determining the cost of production using standard cost method, taking into account normal levels of materials and supplies, labor, efficiency and production capacity.

The levels considered normal consumption of material shall be reviewed within 12 months.

Revenue

Revenue represents increases in economic benefits, incurred during the year, which generated an increase in equity in forms other than those expressing consideration nterprise's new owners.

Revenues are recognized on an accrual basis.

Expenditure

Company expenses are amounts paid or payable.

Accounting expenses take the kinds of expenses as follows:

Synthetic spending accounts covering multiple items with different tax deductibility regime develops analytical, analytical so that each reflect specific content.

Debts of company

Debts evidenced by accounting company on behalf of third-party accounts. Accounting suppliers and other liabilities take into categories and each person or entity. Personal rights shall be accounted for retaining contributions

Income tax payment as a liability should be recognized to the extent unpaid.

Foreign currency debt rating and those with settlement in lei depending on the course of currencies is made at the exchange rate of the National Bank of Romania, valid on the date of each financial year.

Commercial and financial discounts

Trade discounts granted by the supplier and included in the purchase invoice adjusted downwards acquisition cost of goods.

Trade discounts to customers in order to reduce the amount of income adjusted for the transaction

Contingent assets and liabilities

Contingent assets and liabilities is presented in the notes if the inflows are likely to arise economic benefits.

Events after the preparation of financial statements

Events after the balance sheet date are those events, favorable or unfavorable, that occur between the balance sheet date and the annual financial statements are authorized for issue. They are presented in the notes when considered significant.

Events or uncertainty factors that affect or could affect the company's activity

The difficult conditions in the European market of the chemical industry require rethinking the strategy that the company must apply in the next period. The war in Ukraine has put the entire chemical industry in Europe in front of some options both vis-à-vis the areas / fields to develop in the future and in relation to the challenges of sustainability in the supply chains. Sinteza, as a producer of intermediates, must align with this trend and in addition take significant steps towards the production of intermediates with higher added value and which are less dependent on raw materials from fossil fuels.

Business is affected by the global crisis of credit and liquidity constraints that led to a low level and difficult access to funds on the capital market.

Signaled contraction in the financial market, generated in part by developments in the euro zone lately, could affect the Company's ability to access new loans and refinance those already obtained in terms and conditions related to past transactions.

Also, the debtors of the Company may be affected by low levels of available liquidity, which could affect their ability to repay debt when due, which will have an impact on the ability to forecast cash flows.

The Company can not predict all the events that would impact on the financial sector and any effects that would interfere with the financial statements.

The Company can not estimate the effects on the financial statements of future decreases of liquidity in the financial market, the devaluation of financial assets or credit market contraction or increasing currency volatility.

However, the Company believes that, in specific market conditions that it works, characterized by a strong specialization of a small number of participants the risk assessment and management can be achieved through daily monitoring of incoming and outgoing flows of cash and by making shortterm forecasts net liquidity.

The Company is not subject to externally imposed capital requirements.

Curre nt iss.	Indicator	Calculation	Result
1	Current liquidity	Current Assets / Current Liabilities	0,30
2	Indebtedness percentage	Borrowed capital / Equity *100 Equity / Capital employed	0 61.04
		* 100 The average balance of clients
3	The rotation speed of debits - clients	Turnover* 90	18.92
খ	The rotation speed of fixed assets	Turnover/Fixed assets	0.06

3. Economic and financial indicators

FINANCIAL MANAGER ADRIAN BUCUREAN