Turbomecanica S.A.

Quarterly Report • Nov 14, 2024

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

No. 22 of 14.11.2024

QUARTERLY REPORT AS OF SEPTEMBER 30TH 2024

BOARD OF ADMINISTRATION OF TURBOMECANICA S.A. REPORT

TURBOMECANICA SA is a Romanian entity having the legal form of open a joint stock Company according to the Constitutive Act and applicable regulations, privately owned, whose shares are listed on the Bucharest Stock Exchange.

Its field of activity is exclusively manufacturing and according to the classification of activities in the national economy, its main object of activity is the Manufacturing of engines, mechanical assemblies and equipment for aircraft – NACE CODE 3030.

The Company carries out its activity in a highly competitive environment according to the widely recognised principles of corporate governance, in accordance with Romanian legislation, the legislation of the European Union and international practices, supplying on domestic and foreign markets products and services both in the field of defence and civil aviation.

The Company has a long history of start-ups; it has experienced diversification and developments, but also restructures, falls, searches, new beginnings. However, throughout all this time, it has never stopped operating in the aviation and defence industry.

1. Turbomecanica Management

The management of the company is in a unitary system.

The Chairman of the Managing Board is also the General Director of the company and ensures the executive management.

The organization of the Turbomecanica management system is defined by the operative management that ensures the achievement of responsibilities and objectives based on a divisional type organization,

The management at operational level is ensured by the Directors of the 4 departments, which form the Managing Board.

Each operational department has specific structures under it.

As at 30 September 2024, the non-executive management structure that ensures the current development of the activities has the following composition:

NAME	POSITION
VIEHMANN Radu	President of BoD & CEO
ANGHEL Claudia	Financial & Commercial Director
VIEHMANN Timura Mendy	Compliance & Safety Director

TICĂ Sorin Daniel	Production Director
VASILESCU Șerban-Ion	Technical & Conformity Director

The financial results will be included in the financial statements at 30 September 2024, prepared in accordance with International Financial Reporting Standards (IFRS). Some of the elements are listed below:

2. Statement of profit and loss:

30 SEPTEMBER 2024		30 SEPTEMBER 2023
Revenues	104.650.391	## 80.438.102
Other gains and loss	1.932.664	## 3.715.601
Change in inventories of finished goods and work in progress	11.921.686	## 12.938.753
Raw materials and consumables used	(37.364.500)	## (39.566.793)
Employee benefits expense	(44.752.111)	## (39.412.293)
Depreciation and amortisation expense	(8.851.082)	## (5.639.575)
Finance cost, net	(1.779.008)	## (919.687)
Othe operating expenses	(7.100.102)	## (7.117.984)
Gross profit/Profit before tax	18.657.938	4.436.124
Income tax expense/ benefit	(4.038.528)	(727.226)
Net profit	14.619.410	3.708.898

The informational content of the Incomes and Expenses allows highlighting some indicators that characterize the company's activity in terms of its volume and profitability.

The Company recorded operating revenues in amount of RON 117,394,878 and operating expenses in amount of RON 96,946,381. The company registered in Q3 2024 an operating profit of RON 20,448,497. The largest share of this revenue was made through specific activities related to the production profile of the Company.

Indicator (RON)	Q1 + Q2 + Q3 2023	Q1 + Q2 + Q3 2024	Difference
Net Result	3.708.898	14.619.410	10.910.512
Operating result	5.278.712	20.448.497	15.169.785

Operating income	94.074.775	117.394.878	23.320.103
Operating expenses	88.796.063	96.946.381	8.150.318

Operating income increased by RON 23.3 million compared to the same period last year, the main influential factors being the following:

• Increase in revenues related to maintenance products by RON 23.1 million RON
• Increase in revenues related to manufacturing products by 0.5 million RON
• Decrease in income from the variation of stocks and unfinished production by 1.0 million RON
• Increase in other operating income by 0.7 million RON.

TBM recorded a turnover of 104.6 mil. RON at the level of 9 months 2024, exceeding the established objective of 80.3 mil. RON, which represents an increase of 24.3 million. RON (+30.3%).

At the same time, we have a 30.1% increase in Turnover compared to 30/09/2023 (104.6 million RON vs. 80.4 million RON).

Regarding the inclusion of the turnover in the budgeted values, a turnover of 88.7 million was planned for the first three quarters of this year. RON, against which we recorded an excess of 15.9 million. RON

The situation broken down by activities is as follows:

• • 21.1 million RON related to the maintenance activity:
  • 17.1 million RON IAR BV
  • 4 million RON MApN
• 5.2 million RON related to the manufacturing activity
  • 2.8 million RON Leonardo
  • 1.6 million RON GE Hungary / Vernova
  • 0,4 million RON ITP Aero
  • 0,3 million RON Witzenmann

The significant increase in deliveries was positively influenced by the increase in turnover with IAR Brasov. The decrease in deliveries to MApN by 4.6 mil. RON was counterbalanced by Avioane Craiova, which increased by 7.3 million RON, these two clients having the highest profit margin compared to the other TBM clients, including IAR Brasov.

Considering the current sales plan (for October 2024), there are prerequisites for achieving and even exceeding the budgeted turnover for 2024.

	Q3	Q3	Q3	Q3
	2021	2022	2023	2024
Turnover	77.974.062	91.545.691	80.435.146	104.650.391

It should be taken into account that the value of 104,65 million RON is impacted by the reversal of the margin applied to the Turnover in 2023 according to IFRS 15 of 2.0 million RON (Turnover Q3 without IFRS15 impact is 106.65 million RON.) This aspect also changed the Financial Result Situation, respectively the Net Result.

TBM has set as its objective the achievement of a net profit margin of 10%, the MRO industry average of the past decade (before the pandemic). In recent years, the margin has varied between 8% and 9%, and for 2024, a net profit margin of 8.8% is budgeted.

The profit recorded by TBM on Q3 is 14.6 million RON, which represents a net profit margin of 13.97%, compared to Q3 2023 when the margin was 4.61%.

The profit margin, which is almost 4 percent above the set target, represents on the one hand a record of recent years, but it is also influenced by the seasonality of TBM production/sales.

As a result, at this moment we anticipate a decrease in the profit margin in Q4, but at the same time we expect to reach the established objective of 10%.

Considering the aspects presented above, as well as the influence that seasonality has on the evolution of revenues and expenses, it is necessary to continuously monitor revenues and expenses in relation to the sales plan for 2024

Net Profit Margin = 14,619,410 (Net Profit) /104,650,391 () ∗ 100 = 13.97%

We

specify that General Activity Budget was built on the premises of an approximately linear evolution of profit, without taking into account the volatility of production, especially regarding the schedule of deliveries related to the maintenance of engines and mechanical assemblies.

The analysis of this indicator must always take into account several influencing factors specific to the Company, which determine the evolution of income and expenses per month, among which we mention:

• The manufacture of small series products with a long manufacturing cycle.
• Capital repairs are also long lasting.

As a result, the monthly evolution of the financial indicators is not always linear, and when several aspects from those mentioned above are accumulated, significant deviations may appear in the monthly evolution, even if at the annual level the volume of production and repair is carried out in the budgeted terms.

The revenues related to the cost of production in progress and the variation of stocks, had a decrease of 1.0 million RON compared to Q3 2023, the decrease comes from the variations from production in progress, release/launch of new orders (according to customer requirements).

Also, the increase/decrease comes from the production cost of semi-finished products, finished products and residual products obtained at the end of the period, as well as the differences between the predetermined price and the related production cost.

IFRS15 had an impact of 9.53 million RON on the work in progress balance at 31.12.2023. The impact of this standard on the production in progress will be seen after the analysis of contracts/orders at 4th Quarter 2024.

The difference from Other gains and losses is a reversal of provisions: unused vacation days from previous years, pensions - actuarial, loss of IFRS15 application margin, guarantees granted to clients, as well as from exchange rate differences and income from investment subsidies.

In the first 9 months of 2024, the company did not establish any provision.

The situation of provisions is detailed in Note 2 of the "Explanatory Notes".

The expenses with raw materials and materials decreased by 5.6% (2.2 million RON) compared to the same period last year.

Significant variations were recorded in the following expenses:

• Raw materials, negative variation 3.8%;
• With auxiliary materials, positive variation 21.08%;
• Regarding fuel (Kerosene) for the engine bank sample, positive variation 2.4%;
• Regarding fuel related to car park, positive variation 44.6%;
• With spare parts, positive variation with 49.5%;
• With inventory items, positive variation of 21.8%;
• With consumables, positive variation 6.3%;
• Utility expenses, negative variation 14%

The company took measures, as last year, regarding the supply process by purchasing raw materials and necessary materials for the products that will be completed by the end of 2024.

The chart below shows the most significant variations in materials costs.

Salary expenses increased by approximately 13.55% compared to the same period last year (5.33 Million RON)

The salary increase was determined:

• of the real impact of the macroeconomic trends of the last two years on the labor market and general wage dynamics;
• inflation pressure;
• increasing the nominal value of meal vouchers;
• the increase of the minimum wage, which has become an object of regulation at the European level

No. employee environment is presented as follows:

• to 467 employees on September 2023
• to 466 employees on December 2023
• to 480 employess on March 2024
• to 469 employees on June 2024
• to 464 employees on September 2024

The value of other operational expenses decreased by 0.25% compared to the same period. Decrease in expenses:

with scholarships for dual education. TBM offers attractive material benefits to students who enroll in Dual Education classes throughout their schooling. in specializations, such as: aircraft mechanic, milling machine, lathe, fine mechanics mechanic, numerically controlled machine operators, value 34.24%;

protocol expenses 11.02%;

trips in the country and abroad, with 52.04%, the purpose being trips for technical assistance, engine repairs, fairs and exhibitions in the European Union, to attract new customers;

professional staff training with 28.9%;

Increase expenses:

other expenses executed by third parties, with 5.2% (in other expenses are recorded: expeses with satellite equipment, for Main Transmission Box repairs for internal customers: IAR Brasov, MApN, guard expenses, services: audit, occupational medicine, water jet cutting and rectification services, casing metallization services, services: courier, personal recruitment, other services based on concluded contracts);

maintenance and repairs, as an effect of repairing some machines to optimize and make the production process more efficient, with 23.0%;

employee transport expenses to/from the workplace by 7.4%;

insurance by 27.1%.

advertisement and publicity, with 2.3%.

Net financial costs, which represent expenses with bank commissions, interest, increased by 93.44%, compared to the same period last year, the increase being impacted by the increase:

• commissions related to credit lines;
• interest related to leasing contracts. (the largest share)

Asset depreciation expenses (depreciation of buildings, equipment) increased by 56.95%, compared to the same period last year, as a result of the impact of the revaluation of all fixed assets that took place in December 2023, resulting in increases in the value of tangible assets, implicitly also of the depreciation rates.

The financial result was not impacted by any additional expenses regarding compensatory payments, nonfulfillment of contractual obligations, other expenses regarding tangible and intangible assets

3. Statement of financial position:

	30 SEPTEMBER 2024	31 DECMBER 2023
Assets
Fixed assets
Property, plant and equipment	94.616.680	99.147.483
Intangible assets	1.136.077	774.330
Other assets	6.000	6.000
Total fixed assets	95.758.757	99.927.813
Current assets
Inventory	115.146.674	80.750.305
Trade receivables	19.418.966	29.982.186
Contract assets	-	11.697.107
Other receivables	2.040.426	1.491.807
Other current assets	893.220	3.313.564
Contract assetes	22.000.000	18.000.000
Cash and cash equivalents	11.216.401	782.914
Total current assets	170.715.688	146.017.884
Total assets	266.474.444	245.945.698
Shareholder equity and liabilities
Shareholder equity
Share Capital	36.944.248	36.944.248
Reserves	84.324.525	88.601.997
Retained earnings	30.968.698	21.071.817
Own shares	(599.408)	(599.408)
Total shareholder equity	151.638.062	146.018.653
Long term liabilities
Leases	10.477.454	10.140.582
Deferred tax liabilities	5.815.079	5.815.079
Provisions	799.099	799.099
Other financial liabilities	4.176.628	4.656.223
Total liabilities TL	21.268.260	21.410.983
Current liabilities
Trade and other liabilities	10.734.236	9.106.997
Contract liabilities	34.265.070	32.695.740
Borrowing & leases	29.465.000	20.766.700
Current income tax	2.161.161	1.873.718

Provisions Other current liabilities	1.090.671 15.851.983	3.807.170 10.265.737
Total current liabilities	93.568.121	78.516.063
Total liabilities	114.836.382	99.927.045
Total shareholder equity and liabilities	266.474.444	245.945.698

The value of tangible and intangible assets (ERP-SAP computer program) decreased on the one hand with the amortization related to tangible and intangible assets, and on the other hand the increase in the value of intangible assets represents the impact of the development of the SAP computer program including the configuration of the program for RO e-Invoice.

Applying of IFRS 15 "Revenues from contracts with customers" significantly impacted the company financial position in 2023 due to reclassification of assets: receivables, inventories, other assets.

Details of IFRS 15 are specified in the published 2024 financial statements.

Stocks, receivables, other assets in Q3 are booked at their initial value, without the influence of this international standard, and at the end of the year these assets will be analysed and the impact of IFRS 15 against them will be established.

Hence the major differences in stocks, other assets, other receivables, the main influence being from the production in progress.

The value of stocks increased by 42.6% (34.4 million RON) without IFRS15 impact. The company respected its supply policy through the purchase of raw materials and necessary materials for the products that will be completed by the end of 2024 and the beginning of 2025. These measures were taken to prevent possible problems in the supply chain, which could generate delays in the production process.

In the chart below, the variations of the Q3 2024 stocks are mentioned, compared to December 2023.

The value of trade receivables decreased by 35.23%, compared to 31.12.2023 and represents the invoices issued in the first six months of the year by the company and not yet collected. Receivables are collected at the due date established on the basis of commercial contracts/orders concluded with clients. The largest share of total receivables is represented by receivables related to internal customers (72%).

The value of other receivables increased by 0.5 million RON compared to 31.12.2023, the most significant value is the receivables related to the amounts to be recovered from F.N.U.A.S.S. (The Single National Fund of Social Health Insurance – 58.3%).

The value of other current assets, which represent advances from suppliers of materials and services, leasing advances and recurring expenses recorded in advance, decreased by RON 2.4 million.

The contractual assets on 31.12.2023 represent the Impact of IFRS15 on receivables for repair and manufacturing contracts: 11,697,107 RON.

The impact of IFRS15 on contractual receivables for the year 2024 will be established at the end of the year.

The company established bank deposits in the amount of 22,000,000 RON, compared to 18,000,000 RON at the end of the year, with maturity between 3 - 6 months.

The difference from cash and cash equivalents is represented by the available lei/currency in bank accounts.

Loans and short-term leasing debts represent

• a) loans received from associates (4.8 million RON)
• b) the loans granted in the form of a credit limit were used in a higher proportion than on 31/12/2023 (7.2 million RON)

• c) leasing debts which:

• were reduced by the value of the installments according to the maturities of the leasing contracts that the company has employed and

• new leasing contracts for equipment were increased with the corresponding rates: YCM turning machine and OKAMOTO grinding machine, Detection - alarm and fire extinguishing installation, Omnis Advanced Metrohm titration system.

The other financial debts are highlighted, Leaseback contracts for:

a) GLEASON PFAUTER mortising equipment worth 3.09 million RON, put into operation

b) Dental rectification equipment - GLEASON, advance in the amount of - 1.08 million

RON. The company paid advances for these assets. According to the contractual terms, the equipment from point b) will be received in the following period

The company paid advances for these assets. According to the contractual terms, these assets will be received in the following period.

Commercial debts - increased compared to the end of the year by 1.6 million RON, these represent debts to suppliers - invoices received towards the end of Q3, which have not yet reached maturity. The 10.7 million RON component of the debts is shown below:

a) internal suppliers of materials, services 5.9 million RON;

b) external suppliers - intra-community/extra-community, materials and services 1 million RON;

c) fixed assets suppliers – 4.0 million RON, the highest value related to leasing 3.8 million RON, supplier Gleason

The company respected all contractual payment terms to all suppliers and all debts to the state budget and the state social insurance budget.

Contractual liabilities represent the advances that the company has invoiced to IAR SA, for the "Helicopters L" Turmo and Mechanical Ensemble Program, value 34.2 million RON.

Other current debts - increased by 5.6 million RON compared to the end of last year and all debts to the State Budget are highlighted (salary contributions, VAT, non-resident tax, taxes and customs commissions, etc.). The largest share is represented by the value of the dividends to be distributed in Q4 2024 of 9.0 million RON.

TBM has no unpaid fiscal debt to the state authorities.

Current profit tax - represents the tax owed to the State Budget related to Q3 2024 in the amount of 2,161,161 RON, due on 10/25/2024.

Short-term provisions have decreased by 2.7 million RON compared to 31/12/2023, they represent the cancellation/reversal of provisions established at the end of the year, for:

a) unused vacation days from previous years;

b) pensions;

c) margin losses, following the application of IFRS15

More details in Note 2 "Provisions for risks and expenses" from Explanatory Notes.

The company's equity on September 30, 2024, is 151.638.062 RON, compared to 146,018,653 RON, which was at the end of 2023, an increase of 5.6 million RON.

All details regarding changes in equity, reserves, retained earnings can be found in "Statement of changes in equity"

4. Capital Market Aspects

In relation with the capital market, Turbomecanica honored all the reporting obligations resulting from the legal provisions by publishing the mandatory current and periodical reports in the electronic system of the Financial Supervisory Authority and the Stock Exchange, on the company website and via press releases. According to the provisions of the Corporate Governance Code, continuous and periodical information was disseminated simultaneously, both in Romanian and in English.

Turbomecanica is listed on the BVB under the symbol TBM.

5. Environmental Aspects

Turbomecanica is constantly concerned with protecting the environment and is committed to reducing the generation of hazardous and non-hazardous waste as far as activity allows.

It was agreed in the contracts with the suppliers of hazardous waste to return the empty containers back to the supplier in order to reuse them for later deliveries.

The Integrated Environmental Authorization 2184/19.12.2023 and the Water Management Authorization allow the operation in conditions of full legality of the existing installations, equipment and processes in the Company.

It was decided to reduce the amount of waste from the absorption of hazardous waste (eg cloths) by hiring an authorized supplier to clean it for reuse.

6. CFM project

The Government of Romania adopted Government Decision. no. 702/21.06.2024 regarding the granting of grants in the manufacturing industry.

The main activities of Turbomecanica SA are carried out according to NACE 3316 - Repair and maintenance of aircraft and spacecraft, this Classification of activities in the national economy code being eligible according to Annex 1 to Government Decision no. 702/2024, "List of eligible activity sectors "

Starting from 18/07/2024, the Applicant's Guide on granting grants according to this Applicant"s Guide was launched in public debate.

After it will be finalized and published in the Official Gazette, the Ministry of Economy will announce the launch of the annual session, TBM will apply for state aid.

Currently TBM has completed the Business Plan and is waiting for its publication in the Official Gazette.

7. Accounting records

Basis for the preparation and presentation of financial statements The company financial statements of TURBOMECANICA SA are prepared in accordance with the provisions of:

the International Financial Reporting Standards (IFRS) adopted by the European Union;

• Accounting Law no. 82/1991, republished, as subsequently amended and supplemented;
• O.M.F.P. no. 2.844/2016 on the approval of the Accounting Regulations conforming to the International Financial Reporting Standards, as subsequently amended and supplemented;
• O.M.F.P. no. 2.861/2009 for the approval of the Norms regarding the organization and execution of inventories of items such as assets, debts and own capital;
• O.M.F.P. no. 1.826/2003 on the approval of the Explanatory Notes on certain measures relating to the organisation and conduct of management accounting;
• O.M.F.P. no. 2.634/2015 regarding the financial accounting documents, including subsequent amendments and additions;

The accounting is kept in Romanian and in the national currency.

The accounting for foreign currency transactions is carried out both in national currency and in foreign currency.

The financial year is the calendar year.

All documents regarding economic and financial operations have been recorded correctly every day.

Economic and financial operations have been recorded based on financial documents. All accounting information has been posted in the correct accounting statement (assets, liabilities and equity) and corresponds to the real situation of the Companies patrimony.

The debt towards the State Budget has been correctly registered, paid and reflected in the balance sheet. The financial year is the calendar year.

We state that the Financial Statements at 30th of SEPTEMBER 2024 are Unaudited financial.

PRESIDENT OF THE BOARD OF DIRECTORS RADU VIEHMANN

FINANCIAL - ECONOMIC INDICATORS AT 30 SEPTEMBER 2024

No.	Economic indicators	Formula	30 September 2024	30 September 2023
1.	Current liquidity ratio	current assets / current liabilities	1,82	2,15
2.	Total debt ratio	(Borrowed capital-Deferred tax liabilities /Share Capital)*100	9,66	8,25
3.	Receivable turnover ratio	( Accounts Receivable / Turnover ) * 270 days	63,73	10,22
4.	Fixed assets turnover ratio	Turnover / Fixed assets	1,09	1,16

• The value of the current liquidity indicator is above one (1.82) (the optimal value is 2) decreasing compared to the previous period. This decrease is the result of the impact of the increase in deposits in lei and cash availability on current assets/current assets as well as the increase in current liabilities with the value of 9,000,000 lei related to the dividends that will be distributed in QUARTER IV 2024. Even if the value is reduced compared to the previous period, it reflects a good capacity payment, so a reduced risk for creditors, certifying that the company is able to cover short-term liabilities from current assets;
• Total debt ratio, the value of the indicator indicates that company does not have any problems of financing or liquidity. In the calculation of this indicator, the borrowed capital includes both bank loans and leasing debts. The value has increased compared to the same period last year, due to the fact that the company has leased contracts for the purchase of machinery and equipment necessary to increase production capacity.
• The turnover rate of customer debts that expresses the effectiveness of the company in collecting its receivables, respectively the number of days until the date on which the debtors pay their debts to society. The increase compared to December 2023 represents the impact of the reclassification of the advances related to the Helicopter Programs from receivables to contractual liabilities.
• Fixed assets turnover ratio is a measure of the efficiency of the use of assets. The total asset turnover is measured as the ratio between the net turnover and the fixed assets of the company and means how many times the assets are transformed into sales during a period. The value of the indicator is within normal limits, and is comparabile with the previous period.

CEO,

RADU VIEHMANN Financial & Commercial Director, CLAUDIA ANGHEL

STATEMENT OF FINANCIAL POSITION AT 30 SEPTEMBER 2024

	30 SEPTEMBER 2024	31 DECEMBER 2023
Assets
Fixed assets
Property, plant and equipment	94.616.680	99.147.483
Intangible assets, net	1.136.077	774.330
Other assets	6.000	6.000
Total fixed assets	95.758.757	99.927.813
Current assets
Inventories	115.146.674	80.750.305
Trade receivables	19.418.966	29.982.186
Contract assets	-	11.697.107
Other receivables	2.040.426	1.491.807
Other current assets	893.220	3.313.564
Term deposits	22.000.000	18.000.000
Cash and cash equivalents	11.216.401	782.914
Total current assets	170.715.688	146.017.884
Total assets	266.474.444	245.945.698
Shareholder equity and liabilities
Shareholder equity
Issued Capital	36.944.248	36.944.248
Reserves	84.324.525	88.601.997
Retained earnings Losses related to the free	30.968.698	21.071.817
disposal of eqiuity instruments	(599.408)	(599.408)
Total shareholder equity	151.638.062	146.018.653
Long term liabilities
Leases	10.477.454	10.140.582
Deferred tax liabilities	5.815.079	5.815.079
Provisions	799.099	799.099
Other liabilities	4.176.628	4.656.223

Total liabilities TL	21.268.260	21.410.983
Current liabilities
Trade and other liabilities	10.734.236	9.106.997
Contract liabilities	34.265.070	32.695.740
Borrowing & leases	29.465.000	20.766.700
Current Income tax	2.161.161	1.873.718
Provisions	1.090.671	3.807.170
Other current liabilities	15.851.983	10.265.737
Total current liabilities	93.568.121	78.516.063
Total liabilities	114.836.382	99.927.045
Total shareholder equity and liabilities	266.474.444	245.945.698

CEO,

RADU VIEHMANN Financial & Commercial Director CLAUDIA ANGHEL

STATEMENT OF PROFIT AND LOSS AT 30 SEPTEMBER 2024

	30 SEPTEMBER 2024	30 SEPTEMBER 2023
Revenues	104.650.391	## 80.438.102
Other gains and loss	1.932.664	## 3.715.601
Change in inventories of finished goods and work in progress	11.921.686	## 12.938.753
Raw materials and consumables used	(37.364.500)	## (39.566.793)
Employee benefits expense	(44.752.111)	## (39.412.293)
Depreciation and amortisation expense	(8.851.082)	## (5.639.575)
Finance cost, net	(1.779.008)	## (919.687)
Othe operating expenses	(7.100.102)	## (7.117.984)
Gross profit/Profit before tax	18.657.938	4.436.124
Income tax expense/ benefit	(4.038.528)	(727.226)
Net profit	14.619.410	3.708.898

CEO,

RADU VIEHMANN Financial & Commercial Director, CLAUDIA ANGHEL

STATEMENT ON CHANGES IN OWN CAPITAL 30 SEPTEMBER 2024

		Balance on	Growth		Decrease	Balance on
Elements of equity capital		1st of January 2024	Total, of which	through transfer	total, of which	through transfer	30th of September 2024
A		1	2	3	4	5	6
Subscribed capital		36.944.248					36.944.248
Adjustments of registered capital
Deferred profit tax		6.399.587					6.399.587
Share premiums
Revaluation reserve		73.517.772			4.277.471		69.240.301
Legal reserves		7.388.850					7.388.850
Statutory or contractual capital reserves
Reserves representing revaluation reserves surplus		5.757.066	4.277.471				10.034.536
Other reserves		14.094.961					14.094.961
Own shares							0
Income related to own capital instruments							0
Loss related to own capital instruments		599.408					599.408
	Balance C	767.134					767.134
Profit/loss carried forward	Balance D
Reatined earnings due to	Balance C
the adoption of IAS 29 for the first time	Balance D	101.798					101.798
Elements of equity capital		Balance on 1st of	Growth		Decrease		Balance on 30th of
		January 2024	Total,	through	Total,	through	September 2024
Retained earnings - actuarial employee benefits	Balance D	445.120	of which	transfer	of which	transfer	445.120
Retained earnings resulting from the	Balance C	258.730					258.730

adoption of Accounting Regulations according to the Fourth Directive of European Economic Community	Balance D
Retained	Balance
earnings	C	3.689.144	11.146.661		9.000.000		5.835.805
	Balance
	C	11.146.661	129.745.276		120.443.441		20.448.497
Profit or loss for	Balance
the period	D		6.864.979		1.035.893		5.829.087
Profit appropriation
TOTAL OWN CAPITAL		146.018.653	138.304.429	0	132.685.019	0	151.638.063

The legal reserves are established according to the Law 31/1991 with subsequent amendments and completions and registered in accountancy according to the OG No. 64/2001 and OMFP No. 128/2005. These reserves have not been used.

Within "Other reserves" there are recorded the sums appropriated from the net profit as own finance sources. These reserves have not been used.

On 30th of September 2024 the legal reserve was 7,388,850 RON. The legal reserve is established according to Romanian Law as a transfer from the net income. The transfer can represent a maximum of 5% from gross profit to 20% of the registered capital.

Reserves from the revaluation decreased by 4.277.471 RON, representing the values related to the outflows of scrapped fixed assets. In the first 9 months of the year, 21 machines were scrapped, which are no longer functional.

In accordance with Decision no. 1/29.04.2024, in Quarter II, the following were recorded in the accounting records:

The distribution of the profit of 2023, in the amount of 11,146,661 RON, by destinations:

• 9,000,000 lei distribution of dividends and
• 2,146,661 undistributed profit representing the own source of investment financing

The net result for Quarter III 2024 is 14.619.410 RON.

The equity increased compared to 31.12.2023, with the value of 5.619.410 RON, impact of the revaluation reserves and Retained earnings.

CEO RADU VIEHMANN

Financial & Commercial Director, CLAUDIA ANGHEL

CASH FLOW STATEMENT 30 SEPTEMBER 2024

	EXPLANATIONS	NO. ln.	Executed 30/09/2024	Executed 30/09/2023
+	Turnover	01	104.650.391	80.435.146
+	Changes in inventories	02	11.921.686	12.941.709
+	Other operating revenues and provisions	03	822.800	697.920
=	Total operating income	04	117.394.878	94.047.775
+	Raw materials and consumables	05	33.977.948	35.613.991
+	Energy, fuels, etc.	06	3.401.128	3.952.802
+	Employee benefits	07	44.752.111	39.412.293
+	Expenses related to external labour	08
	conscriptions		5.864.350	5.602.521
+	Expenses with other taxes, fees and similar payments	09	669.287	671.060
+	Depreciation of non-current assets and	10
	provisions		6.134.584	2.576.829
+	Other operating expenses	11	2.146.974	966.568
=	Total operating expenses	12	96.946.381	88.796.063
	Operating results (+/-)	13	20.488.497	5.278.712
+	Financial revenues	14	1.035.893	1.606.930
-	Financial expenses	15	2.826.451	2.449.518
=	Financial result (+/-)	16	(1.790.559)	(842.588)
	Gross result (+/-)	17	18.657.938	4.436.124
	Deferred tax	18	4.038.528	727.226
	Net result (+/-)	19	14.619.410	3.708.898
	CASH FLOW	20	Executed 30/09/2024	Executed 30/09/2023
+	Profit or loss (+/-)\	21	14.619.410	3.708.898
+	Damping included in cost	22	8.851.082	5.639.575
-	Stock variation (+/-)	23	32.352.972	39.649.009
-	Receivables variation (+/-)	24	(21.888.927)	(23.002.607)
+	Variation of providers and creditors (+/-)	25	(21.018.680)	(15.688.489)
-	Variation of other assets	26	(16.924.648)	(7.822.401)
+	Variation of other liabilities	27	8.346.272	35.468.153
=	Net cash generated by operating activities	28
+	(A ) Income from selling assets and fixed	29	16.628.687	20.304.136
	assets
-	Purchase of tangible assets	30	11.751.712	5.669.486
-	Expenses for Tangible and intangible fixed assets executed under own direction	31		2.956
=	Net cash generated by investment activities ( B )	32	(11.751.712)	(5.672.442)
+	Loans variation (+/-)	33	9.514.070	(4.872.123)
=	Net cash used in financing activities (C)	34
			9.521.711	(4.857.233)
	Cash and cash equivalents at the beginning of the period	35	18.782.914	22.314.306

Net cash flow	36	14.398.687	9.774.462
Cash and cash equivalents at the end	37
of the period		33.181.601	32.088.768

CEO

RADU VIEHMANN Financial & Commercial Director, CLAUDIA ANGHEL

EXPLANATORY NOTES 30 SEPTEMBER 2024

1. FIXED ASSETS STATEMENT

Gross values
				Degression
Asset elements	No.	Balance on 1 st January 2024	Accrual	total	of which: dismantling and rescission	Balance on 30th of September 2024 (col 5=1+2-3)
A	B	1	2	3	4	5
Intangible assets
Development expenses	01
Other non-current assets	02	23.595.008	846.026		X	24.441.034
Advances granted for fixed assets	03
Intangible assets in progress	04	0	846.026	846.026		0
TOTAL (ln. 01 to 04)	05	23.595.008	1.692.052	846.026	X	24.441.034
Tangible assets
Lands	06	27.130.722	0	0		27.130.722
Buildings	07	13.698.835	72.780	0		13.771.615
Technical equipment and machinery	08	51.926.062	9.834.886	5.115.166		56.645.782
Other equipment, installations and furniture	09	301.996	510.364	0	0	812.360
Intangible assets in progress	10	5.479.375	8.262.122	10.363.986	0	3.377.511
Advances granted for fixed assets	11	610.493	1.552.737	1.179.120	0	984.110
Advances granted for active leasing suppliers	12	631.727		320.053	0	311.674
TOTAL	13	99.779.211	20.232.890	16.978.326	0	103.033.775
Right-of-use asset	14
Financial assets	15	465.083	3.181	114	0	468.150
FIXED ASSETS-TOTAL	16	123.839.302	21.928.123	17.824.465	0	127.942.960

1.1 FIXED ASSETS AMORTIZATION STATEMENT

Asset elements	No.	Balance on st 1 January 2024	Amortization during the year	Ammortization of derecognized assets	Balance on 30th of September 2024 2024 (col.9=6+7-8)
A	B	6	7	8	9
Intangible assets
Development expenses	17
Other non-current assets	18	22.820.678	484.279	0	23.304.957
TOTAL (in. 17 to 18)	19	22.820.678	484.279	0	23.304.957

Tangible assets
Lands	20
Buildings	21	0	471.229		471.229
Technical equipment and machinery	22	0	7.798.145	261.383	7.536.762
Other equipment, installations and furniture	23	0	97.430	0	97.430
TOTAL (in.21 to 23)	24	0	8.366.803	261.383	8.105.421
Right-of-use asset	25	0	0	0	0
AMORTIZATIONS – TOTAL (19+24+25)	26	22.820.678	8.851.082	261.383	31.410.378

The record of fixed assets is kept at the net value.

All fixed assets purchased are recorded in the debit account 231 "Tangible fixed assets in progress". (item Tangible fixed assets in progress). If the purchased fixed asset does not require assembly and technological tests, the Verbal Receipt Process is drawn up and registered in the category of fixed assets to which it belongs. It is subject to depreciation from the month following the month in which it was purchased. For the fixed means that require assembly and technological tests, the Verbal Reception Process is drawn up upon their completion.

The balance of the account represents the value of purchases that are in the assembly phase or technological samples and are to be received for commissioning

Depreciation is calculated starting from the month following commissioning.

The balance of the account represents the value of purchases that are in the assembly phase or technological samples and are to be received for commissioning.

In the Other Fixed Assets position, there were improvements to the SAP IT system.

In the position of Technical installations and machines, new purchases were registered, consisting of:

• Measuring and control devices and installations:
  • Metrohm Omnis advanced titration system - Helium leak detector
• Machinery and work equipment:
• YCM machining center
• Gas installation for OERLIKON metallization
• OKAMOTO grinding machine
• Mortising equipment Gleason P600/800ES
• MILLER Electric Multiprocess welding machine
  • EZTREND recorder
  • Fire detection, alarm and extinguishing installation

2. PROVISIONS FOR RISKS AND EXPENSES

Title of the provision	Balance on st 1 January 2024	Growth	Decrease	Balance on 30th of September 2024
0	1	2	3	4=1+2-3
Adjustment for customer receivables impairment	171.869		0	171.869
Adjustment for debtors receivables impairment	0			0

Adjustment for raw materials stocks impairment	13.867.365			13.867.365
Adjustment for supplies stocks impairment	644.661			644.661
Impairment of stocks in progress	4.302.851			4.302.851
Adjustment of materials and stocks at other partners				0
Adjustments for the depreciation of chemicals	307.743			307.743
Adjustment for manufactured items impairment	328.049			328.049
Impairment of residual products	169.813			169.813
Provisions for guarantees granted to customers	1.016.104			1.016.104
Provisions for retirement and similar obligations	879.870		197.488	682.382
Other provisions	2.710.295		2.519.011	191.284
TOTAL	24.398.620	0	2.716.499	21.682.122

The value of the pensions paid to the employees who retired during this period according to CCM are registered in provisions for pensions and similar obligations, value 197.488 RON. The company has established provisions for debts towards employees as a result of retirements and annual leave provided by Collective Labor Agreement (CCM), Provision for customer receivables impairment

In Other provisions are registered the reversal / cancellation of the provisions regarding (Note 21 of the 2023 financial statements)

• the value of the holidays not performed from the previous years to the extent that the employees in 2024 take vacation days related to 2023, their value is reversed until the concurrence of the established provision. Provisions in the amount of 402,415 RON.
• for margin loss from IFRS15 application the value of 566,596 RON was reversed, representing a loss from the application of IFRS15
• performance bonuses 1,550,000 RON.

In the first 9 months of the year, provisions in the amount of 2,716,499 RON RON were remitted, these are considered non-taxable income for profit tax calculation

In Q3 2024, the company did not set up any provision.

3. PROFIT TAX

The calculation of fiscal loss is according with methodological Norms of application of Law 227/2015 (with all subsequent amendments).

The gross profit or loss is defined according to the form "Profit and loss account" and we apply the stipulations of Law No. 227/2015 (with all subsequent amendments). All sums are expressed in RON.

Gross profit 16,780,571 To establish the tax profit, the expenses that have overpassed the admitted deductibility limit are added to the non-deductible expenses, according from the Law 227/2015

Non-deductible expenses 12,744,150	Non taxable income	2,716,499

Deductions amortization)	(tax	4,904,527
Elements similar to income (revaluation account surplus)	105	3,875,717

Items similar to income consist of the reserve representing the revaluation surplus taxed at the exit of the asset

TAX PROFIT: 25,779,412

The non-taxable income in the amount of RON 2,716,499 represents the value of the provisions reversed in Q3 (provisions constituted at the end of 2023 which were considered non-deductible expenses when calculating the profit tax on 31.12.2023) and now with the partial reversal of to them, they are considered non-taxable income. (Note 2 – Provisions for risks and expenses).

The non-deductible expenses, the largest share of 69.4 %, in a total amount of 12.7 million RON, represent expenses with amortization, (8.8 mil. RON) while the rest in percentage of 30.6% represents:

• car park related expenses (fuel, spare parts, service)
• protocol expenses,
• technological losses that exceed the own consumption norm necessary for the manufacture of a product;
  • sponsorship expenses;
  • limited deductible expenses, regarding insurance and social protection;
  • profit tax expense Q1, Q2 2024 (1.8 mil RON);
  • expenses regarding sponsorships.

Deductions (fiscal depreciation) represent the difference between accounting and fiscal depreciation.

The elements similar to income are made up of the reserve representing the surplus realized from Revaluation taxed at the exit of the immobilization.

4. ANALYSIS OF THE OPERATING RESULT

		Period	Period
No.	Indicator	30/09/2024	30/09/2023
1.	Net turnover	104.650.391	80.435.146
2.	The costs of goods and services provided	54.908.245	49.416.547
3.	Expenses of the basic activities	28.713.141	25.133.227
4.	Expenses of auxiliary activity	4.570.654	4.294.928
5.	Indirect production expenses	21.624.450	19.988.392
6.	Gross result related to net turnover (1-2)	49.742.146	31.018.599
7.	Retail expenses	1.583.067	2.961.786
8.	General administration expenses	28.533.383	23.476.021
9.	Other operating income	822.800	697.920
10.	Operating result (6-7-8+9)	20.448.497	5.278.712

5. STATEMENT OF RECEIVABLES AND DEBTS

Receivables	Balance on 30th of September 2024	Liquidity term
-------------	--------------------------------------------	----------------	--

	(col.2+3)	under 1 year	over 1 year
0	1	2	3
Total, of which:	21.051.033	21.051.033
Suppliers debtorss-debtors	647.941	647.941
Customers	19.590.835	19.590.835
Personnel and social security receivables	711.523	711.523
VAT under settlement	139.276	139.276
Other receivables regarding state and public institutions receivables	133.326	133.326
Debtors	0
Provision for customer receivables impairment	171.869	171.869
Debts	Balance on 30th of September 2024	Chargeability term
	(col.2+3+4)	under 1 year	1-5 years	over 5 years
0	1	2	3	4
Total, of which:	112.957.962	92.488.800	14.654.082	5.815.079
Short term bank loans	23.627.887	23.627.887
Long term loans	20.491.196	5.837.113	14.654.082
Suppliers	10.745.585	10.745.585
Creditors	34.265.070	34.265.070
Expenses regarding with personnel and social security	4.493.279	4.493.279
Tax for non-residents	0
VAT to pay	842.265	842.265
Other debts regarding state and public institutions	2.192.047	2.192.047
Deferred tax liabilities	5.815.079			5.815.079
Dividens	10.344.637	10.344.637
Other creditors	140.916	140.916

Bank loans	Balance on 30th of 2024
BRD – GSG	14.982.910
Bank Transilvania	8.644.977
Short term loans from Shareholders	4.880.000
Short term loans	28.507.887
Total	28.507.887

Short-term bank loans at BRD and BT represent the credit limits that are made available to the company as working capital.

The company has no long-term bank loans.

6. PRINCIPLES, POLICIES AND ACCOUNTING METHODS

General provisions

The financial statements are set up according to the O.M.F.P. 2844/2016 (IFRS), to the Law on Accountancy No. 82/1991, with subsequent amendments.

The financial statements have been set according to the historic cost and presented in lei.

The costs of indebtness and the expenses related to maintenance of a state of functioning at projected parameters of fixed assets, do not capitalize.

The grounds for setting up financial statements

These are individual financial statements of TURBOMECANICA S.A. Company. These financial statements are the responsibility of the Company's management and are set up according to the accountancy norms of Romania, that is the Accountancy Law No. 82/1991, republished, the Order of the Ministry of Public Finances 2844/2016 (IFRS)

The use of estimations

The setting up of financial statements according to accountancy norms of Romania require the management to make some estimations and presumption that affect the value of assets and debts, and the description of assets and potential debts on the date of setting up the financial statements, as well as the value of income and expenses related to the accounting period. The actual results may be different from these estimations. These estimations are periodically reviewed and, if the need arises for adjustments, the latter are recorded in the profit and loss account within the period they become known. Even if these estimations are somehow imprecise, the cumulated effect of the imprecision on financial statements is considered to be insignificant.

The operating continuity

These unconsolidated financial statements have been set up based on the principal of operating continuity, which states that the Company would continue its normal functioning in a predictable future, without confronting the impossibility to continue its operation or to significantly reduce its activity

Tangible assets

The tangible and intangible assets are recorded in accountancy according to the Accountancy Law No. 82/1991, with subsequent amendments and completions.

Following the revaluation applied in compliance with HG 1553/2003, O.M.F.P. 2844/2016 the tangible and intangible assets are registered at their net value.

The last revaluation unfolded according to the International Standards for Evaluation and Regulations of International Standards of Financial Reporting, by an independent evaluator, authorized S.C. NEOCONSULT VALUATION S.A., based on the agreement No. 3661 from 06/10/2023

As intangible assets, the accountancy only registers licenses and IT programs purchased from the providers.

Within the profit and loss account, the amortization of intangible assets is included at "Amortizations and provisions for tangible and intangible assets impairment" and "Expenses" respectively.

The amortization related to the fixed assets revaluated in December 2009, 2012, 2014, 2017, 2020, 2023 is mentioned within the "non-deductible expenses" according to the methodological Norms for application of the Law N0. 227/2015 and UO 34/2009.

Tangible and intangible assets are subject to amortization in compliance with Law 15/1994. The amortization method is the linear one.

The classification of fixed assets and their normal terms of functioning are established by the committee for reception and commissioning of fixed assets according to H.G. 2139/2004 for the approval of the Catalogue of classification and normal functioning terms of fixed assets.

The expenses that occur once the fixed asset is commissioned, such as repair and maintenance and administrative costs, are registered within the profit and loss account for the period of their occurrence. If it's possible to demonstrate that these expenses resulted in a future growth of economic benefits expected to be obtained through the use of an element of fixed asset over the performance standards initially evaluated, the expense is capitalized as additional cost.

The tangible and intangible assets are subject to amortization in conformity with the Law 15/1994. The amortization method is the linear one, based on the estimated useful lifespan, from the moment of their commissioning, so as the cost shall decrease to the residual value estimated durinf the considered functioning period.

Within the profit and loss account, the amortization of intangible assets is included at "Amortizations and provisions for tangible and intangible assets impairment" and "Expenses" respectively.

The main lifespans used with different categories of tangible assets are:

	Years
Buildings	10 - 50
Plants and machinery	3 - 15
Other equipment and furniture	3 - 15

The tangible assets that are scrapped or sold are cancelled from the balance together with corresponding cumulated amortization. Any profit or loss resulted from such an operation is included in the current profit and loss account.

According to the provisions of HG 2139/2004 related to the approval of the Catalogue for classification and normal durations of fixed assets' functioning, the Company has chosen to apply the minimal duration of fixed assets' functioning.

Any growth resulted from the revaluation of tangible assets is included in own capitals under reserves from revaluation, with the exception of those cases when such a growth compensates a decrease from the revaluation of the same asset, priory registered within the profit and loss account, in which case the growth is registered in profit and loss account at the level of the previous decrease. A decrease of accounting value of the lands and buildings is registered in the profit and loss account as long as it exceeds the value, if it is the case, of the revaluation reserve, related to the previous revaluation of the relative asset.

Amortization of tangible assets is registered in the profit and loss account. In case of subsequent selling or scrapping the revaluated tangible assets, the surplus from the revaluation left within the revaluation reserve is transferred directly to the retained result. There won't be made any transfer from the revaluation reserve to the retained result, except for the case of derecognized asset. However, a part of the surplus may be transferred as the asset is used by the entity. In this case, the value of transferred surplus shall represent the difference between the amortization calculated based on revaluated accounting value and the value of amortization calculated based on the initial cost of the asset.

Intangible assets

An intangible asset must be recognized if, and only if, it is estimated that the future economic benefits attributed to the asset shall be obtained by the Company and the cost of the asset may be precisely evaluated.

The costs related to the purchase of software are capitalized and amortized based on the linear method. If it is retained as necessary, the accounting value of each intangible asset is annually reviewed and adjusted for the decrease of its value.

Inventories

The record keeping of materials is organized based on quantities and values, grouped upon administrations, depending on the product for which they are designated within the manufacturing technologies.

By their entrance in the patrimony, the inventories (raw material, material, goods) are registered by their purchase prices. For imported materials, the acquisition price includes only expenses mentioned in Import Customs Declarations. For the materials purchased within the EU, the acquisition price includes the expenses recorded in the provider's invoice (or in an equivalent document) as well as expenses for transportation recorded in invoices issued by the transporter. The expenses related to the manipulation, deposit, etc. are registered in the account 308.1 "Differences in prices and materials" and is distributed upon materials consumed in the following period.

The record keeping of materials from own production is made by the planned cost. The cost does not include administrative and distribution expenses. The differences between actual and planned costs is registered in the account 308.2 "Price differences of unfinished goods" and 308.3 "Price difference of materials and inventories of own production" and are distributed upon materials of own production consumed in the following period.

The record keeping of manufacture in progress is made by the actual production costs. To distribute the expenses the orders method is being used. The indirect manufacture expenses are summarized monthly and distributed on the expenses related to direct workmanship, including related expenses registered within that month.

For inventories of finished goods, the cost does not include administration and distribution costs. The finished goods are registered by the ante calculation cost. The differences between the actual cost and the ante calculated one by the closure of the order is registered in account 348 "Price differences of finished goods" and are settled simultaneously with the finished goods.

By the exit of the inventories from administration, there has been used the method of "Weighted Average Cost" which supposes the calculation of costs of each element based on weighted average costs of similar elements from within inventory at the beginning of the period and costs of similar elements manufactured or purchased during the period. The average cost is calculated at the exit of inventories.

Receivables and debts

The record keeping of customers and providers, of other receivables and bonds is organized by categories, as well as by each legal entity or natural persons. The commercial receivables are recorded by their nominal value.

The debts registered within the accountancy are current debts and are recorded by their nominal value.

The IT system

From the IT point of view, the accounting system is registered within the IT System SAP.

Availabilities and availability equivalents

To prepare the cash flow statements, the availabilities and availability equivalents include: cash at cashdesks, bank cash available any time, financial instruments in cash, without overdraft.

The treasury and treasury equivalents include liquidity assets and other equivalent values that include cash at cash-desks, current bank accounts and visible short-term bank deposits, with a three months maturity.

Revenues and expenses

The revenues have been evaluated and registered at the just value of the received means of payment. The company has not performed transactions that might provide commercial decrease.

There have been registered as revenues only transactions that have generated benefits to the company. Because the delivered products have different manufacture cycles for more than a month, the related expenses have been registered for the whole period related to the manufacture cycle and recognized simultaneously with the delivery of the products, and the registration of the revenues respectively.

The revenues are registered based on the "issued invoices" subsequently to the delivery of the products according to the "delivery notes". In special situations, if the client requires the deposit of the products within the plant and their delivery at a later reciprocally convenient date, a "minutes of custody" is being prepared, in which the customer recognizes that the property rights have been transferred to him.

The revenue registered in advance represent the consideration of transactions evaluated by the just value of the means of payment provided in the agreement, but for which the property rights have not been transferred through the transfer of goods in customer's property.

The record keeping of revenues and expenses is organized by types and nature of revenues and expenses.

The record keeping of expenses by destination is organized in administration accountancy.

Exchange rate differences

The differences in exchange rate are registered in the profit and loss account and are considered revenues and expenses of the period. Exchange rate differences are calculated according to BNR rate for debts, receivables and liquidity, and by the rate recorded in Customs Declarations for goods.

In 2024 on 30th of September the following differences of exchange rates have been registered: (RON)

at revenues (account 765)	84,808
at expenses (account 665)	84,011

Profit tax

The tax is calculated according to the Romanian Law and is based on the results retained in financial statements by the Company, prepared in compliance with the Order of the Ministry Public Finances 2844/2016 (IFRS) and after the corresponding deductions.

The current profit tax is calculated as a percentage applied to the obtained profit, according to Romanian Law, adjusted for some positions in compliance with fiscal legislation, at a 16% rate for year 2024. The loss registered in previous years may be covered in following periods.

Value Added Tax

The Value Added Tax (VAT) related to the sales must be paid to fiscal authorities to the 25th of the next month, based on a declaration on VAT, regardless the collection of receivables from the clients. When the VAT related to the purchase is larger than the VAT related to sales, the difference shall be retrieved, on a request basis, from fiscal authorities and is object to a prior verification executed by these authorities. The VAT related to sales and purchase transactions unfinished by the date of balance , must be recognized on gross basis and presented separately as current asset or current liability. In case of depreciation adjustments for irrecoverable receivables, they are registered as related expenses, including VAT. The VAT collected is maintained in accountancy until the elimination of receivable for fiscal reasons.

Foreign currency transactions

The transactions expressed in foreign currency are registered in accountancy at the exchange rate on the date of transaction. The cash assets and liabilities expressed in foreign currency shall be converted in lei by the exchange rate from the date of accounting balance. The exchange rate on 30th of September 2024 has been of 4.9756 for 1 EUR and 4.4451 for 1 USD.

All the resulted differences on the discount and conversion of the sums in foreign currency are recognized within the profit and loss account for the year in which they have been executed. The loss realized and non-realized are registered as expenses, including those related to loans, and the profits from currency exchange or cash deposits are included in the profit and loss account for that year

Subsequent events

There has not been registered any subsequent event.

7. SHARES AND BONDS

Nr. crt		U.M.	30/09/2024	30/09/2023
1.	Share capital subscribed	RON	36.944.248	36.944.248
2.	Issued shares (by types)
	number		369.442.475	369.442.475
	total value		-	-
3.	Redeemable shares	number	369.442.475	369.442.475
	the closest date or the deadline for ransom
	mandatory or non-mandatory nature of ransom		-	-
	the value of an eventual ransom premium		-	-

8. INFORMATION ON EMPLOYEES, ADMINISTRATORS AND MANAGERS

Nr. crt.			U.M.	30/09/2024	30/09/2023
1.	Employees
		1. Average number related to the period	no	464	467
		2. paid or payable salaries related to the period	ron	42.838.216	37.721.575

3. expenses on social security	ron	1.913.895	1.690.718
-----------------------------------	-----	-----------	-----------

The company has not granted loans to managers and administators in this reporting period. According to the provisions of Law no. 165/2018, the employees receive the legal amount of meal tickets.

The variation in the number of personnel as well as personnel expenses were explained in the Financial Result Statement

9. INFORMATIVE DATA

• a) Data presenting the company:
  • legal form of the company: joint-stock company
  • address of headquarters: Bd. IULIU MANIU no. 244, sector 6, BUCHAREST
  • registered capital: 36.944.248 RON
  • amount of shares: 369.442.475
    • b) Shareholder structure:

VIEHMANN RADU (25,92 %), CIORAPCIU DANA MARIA (15,16%), CIORAPCIU SORIN TUDOR (9,57%), ANGHEL CLAUDIA ( 6,98 %), OTHER SHAREHOLDERS (42,37%).

c)	Net turnover, total	104.650.391 RON
	- Of which export	15.296.547 RON

The structure of turnover on main manufactures is the following:

	RON	EURO	USD
Motor Turmo IV C Repairs + Overhaul	29.101.472	5.850.248	6.358.893
Main rotor hub Repairs + Overhaul	14.370.758	2.888.943	3.140.120
Repairs + Overhaul main gearbox	17.443.048	3.506.563	3.811.438
Repairs + Overhaul rear transmission	3.093.011	621.786	675.846
Intermediate gearbox Repairs + Overhaul	1.741.814	350.156	380.600
Current engine repairs, parts, aviation parts and spare parts	30.691	6.170	6.706
Current engine repairs, technical assistance, PSD engine T 56	71.255	14.324	15.570
Repairs, Viper engine transformation	5.092.427	1.023.727	1.112.734
Transmission shaft repairs	3.633.935	730.527	794.042
RK fan bearing repairs	1.529.555	307.485	334.219
Sweep damper repairs	460.510	92.576	100.625
Aggregate repairs	62.497	12.564	13.656
TOTAL IAR + MApN	76.630.972	15.405.068	16.744.449
Aeroteh parts repairs + others	11.145.911	2.240.654	2.435.466
Unison parts and parts	252.226	50.705	55.113
Export aviation	11.408.672	2.293.477	2.492.881
Industrial components	3.887.875	781.577	849.530
Others	1.324.736	266.311	289.465

TOTAL SALES	104.650.391	21.037.792	22.866.905
On geographical zones, the turnover is distributed as follows:
EUROPE	15.263.148	3.068.340	3.335.114
USA	0	0	0
ASIA	33.398	6.714	7.298
TOTAL EXPORT	15.296.547	3.075.054	3.342.412

ROMANIA	89.353.845	17.962.738	19.524.494
NET TURNOVER	104.650.391	21.037.792	22.866.905

For the currency equivalent, the value of 4.9744 RON was taken into account for 1EURO and 4.5765 RON for one USD (average values displayed by BNR).

The net result Q3 2024: 14.619.410 RON

CEO RADU VIEHMANN

Financial & Commercial Director CLAUDIA ANGHEL

Statement of the President of the Board

I, Radu Viehmann, Engineer, Chairman and General Manager, herewith undertakes the responsibility for the drafting of the accounting reports at 30 September 2024.

We hereby declare, that all accounting policies used by Turbomecanica S.A. in drafting the accounting reports at 30 September 2024 are in compliance with the Accounting Regulations, for companies whose securities are admitted for trading on a regulated market, with OMFP no. 2844/2016 for the approval of the International Standards for Financial Reporting, and with the Accounting Law no. 82/1991 with its subsequent amendments.

We hereby confirm that in Q1 – Q3 of 2024 the company did not record any cases of noncompliance with laws or regulations that could significantly influence the accounting reports.

We declare that the accounting reports as at 30 September 2024 of Turbomecanica S.A. provide an accurate image of the financial position, financial performance and other information related to the work carried out between 01.01.2024 - 30.09.2024.

We declare that Turbomecanica S.A. carries out its activity in terms of continuity and does not intend nor needs to liquidate or reduce its business volume as a result of:

• loss of important clients
• applying a reorganization plan
• outstanding payments
• failure to observe the rescheduling agreements
• liquidity problems, litigation as a defendant and plaintiff with shareholders, debtors, significant creditors, state bodies, claiming
• market risk sector
• other factors

We hereby declare that the Board Members are not aware of material uncertainties related to events or conditions that may cause significant doubts on the ability of the company to continue its operations. We hereby mention the fact that the accounting reports drafted at 30 September 2024 have not been audited.

President of the board and General Manager Eng. RADU VIEHMANN