Zentiva S.A.

Annual / Quarterly Financial Statement • Feb 28, 2025

S.C. ZENTIVA S.A.

C2-Internal

Report of the Board of Directors for 2024 Fiscal Year (Preliminary)

Reported date	: 31.12.2024
Company name	: S.C. ZENTIVA S.A.
Location of the registered office	: 50 Theodor Pallady str., Bucharest
Tel. / Fax	: 021-304.72.00 / 021-345.40.04
Tax registration code	: RO 336206
Trade Register order number	: J/40/363/1991
Subscribed and paid-in social capital : 69,701,704 RON

SUMMARY:

Statement of comprehesive income	3
Statement of financial position	4
Cash Flow Statement	5
Statement of Changes in Shareholders' Equity	6
Activity Analysis and Financial Ratios	7
Note on the financial statements	8

STATEMENT OF COMPREHENSIVE INCOME	2024	2023
	RON	RON
Revenue from sales of goods	1,052,441,014	894,066,595
Revenue from rendering of services	61,403,805	59,566,489
Revenue	1,113,844,819	953,633,084
Other operating income	(324,236)	395,084
Changes in inventories of finished goods and work in progress Raw material expenses, merchandise, consumables used and	13,496,732	18,373,825
utilities	(463,189,194)	(451,621,314)
Employee benefits expenses	(202,451,016)	(162,197,973)
Depreciation, amortization and impairment	(29,675,217)	(31,701,874)
Marketing and advertising expenses	(13,859,823)	(9,924,589)
Reversal of/ (expenses with) provisions	(486,089)	1,117,499
Other operating expenses	(168,222,514)	(133,558,810)
Operating profit	249,133,462	184,514,933
Financial Income	42,847,450	41,829,109
Financial Expenses	(4,712,946)	(4,518,761)
Profit before income tax	287,267,966	221,825,281
Income Tax Expense	(28,509,772)	(29,209,449)
Net profit for the year (A)	258,758,194	192,615,832
Other comprehensive income:
Other comprehensive income that will not be reclassified to
profit or loss in subsequent periods:
Deferred tax impact Other comprehensive income items	35,657 (222,857)	174,384 (882,309)
Other comprehensive income net of tax (B)	(187,200)	(707,925)
Comprehensive income for the year (A) + (B)	258,570,994	191,907,906
Net earnings per share (RON/share)	0.37	0.28

STATEMENT OF FINANCIAL POSITION	31 December 2024	31 December 2023
Assets
Non-current assets
Property, plant and equipment	253,852,567	220,505,720
Advances for equipment Right-of-use assets	1,965,626 18,108,392	8,652,051 21,092,139
Goodwill	11,649,100	11,649,100
Customer relationships	13,476,050	16,925,260
Other intangible assets	2,740,267	2,948,351
Total Intangible assets	27,865,417	31,522,711
	301,792,002	281,772,621
Current assets Inventories	192,971,202	191,883,609
Trade receivables and other receivables	552,114,943	410,875,837
Income tax receivable	4,803,609	-
Advances and prepayments	3,895,454	3,847,896
Cash pooling intercompany receivables	645,672,067	583,820,497
Cash and cash equivalents	33,625,156	27,302,728
	1,433,082,431	1,217,730,566
Total assets	1,734,874,433	1,499,503,187
Equity Issued share capital	69,701,704	69,701,704
Share premium	24,964,506	24,964,506
Legal and other reserves	202,661,424	155,961,510
Revaluation reserve	65,023,715	67,069,892
Retained earnings	1,087,871,858	873,564,853
Total equity	1,450,223,207	1,191,262,465
Non-current liabilities
Employee benefit liability	7,945,130	7,173,565
Deferred tax liability Lease liabilities	2,237,742 9,555,404	5,556,704 13,894,126
Provisions	2,040,968	1,265,568
Total non-current liabilities	21,779,244	27,889,963
Current liabilities
Contract liability	-	4,623,319
Trade payables and other payables	194,670,632	210,988,922
Income taxes payable	-	7,641,646
Short-term lease liabilities	8,917,455	7,261,482
Other current liabilities	56,058,082	46,251,580
Short-term provisions Total current liabilities	3,225,813 262,871,982	3,583,810 280,350,759
Total liabilities	284,651,226	308,240,722
Total liabilities and equity	1,734,874,433	1,499,503,187

STATEMENT OF CASH FLOWS	31 December 2024	31 December 2023
Cash flows from operating activities:
Profit before tax	287,267,966	221,825,281
Depreciation and amortization	31,214,120	30,772,848
Impairment on property, plant and equipment	(1,538,903)	929,026
Allowance for trade and other receivables, advances and
prepayments	(248,010)	251,807
Inventory allowance movement	9,434,226	(4,848,676)
Movements in provisions for risks and charges	417,403	(1,001,717)
(Gain)/loss on sale of non-current assets	1,492,042	24,897
Interest revenues	(40,118,792)	(37,877,564)
Interest expenses	1,738,059	1,380,300
Operating profit before working capital changes	289,658,111	211,456,202
Change in inventories	(10,521,819)	(13,974,701)
Change in trade, other receivable and advances	(134,529,472)	(252,630,576)
Change in trade and other payable	(9,982,191)	96,715,915
Interest paid	(1,738,059)	(1,380,300)
Cash generated from operating activities	132,886,569	40,186,540
Income tax paid	(44,439,115)	(26,003,618)
Net cash from operating activities	88,447,454	14,182,922
Cash flows from investing activities
Purchase of property, plant and equipment and intangible assets	(52,135,319)	(28,319,718)
Cash pooling movement	(61,674,328)	(309,310)
Interest received	40,118,792	37,877,564
Net cash used in investing activities	(73,690,854)	9,248,537
Cash flows from financing activities
Lease payments	(8,434,171)	(7,319,410)
Net cash used in financing activities	(8,434,171)	(7,319,410)
Net increase (decrease) in cash and cash equivalents	6,322,429	16,112,049
Cash at the beginning of the period 1 January	27,302,728	11,190,679
Cash at the end of the period 31 December	33,625,156	27,302,728

STATEMENT OF CHANGES IN EQUITY

	Share capital	Share premium	Legal and other reserves	Revaluation reserve	Retained earnings	Total
Opening balance at 1 January 2024	69,701,704	24,964,506	146,399,175	67,069,892	691,219,282	999,354,559
Profit for the year	-	-	-	-	258,758,194	258,758,194
Other comprehensive income:
Decrease in reevaluation reserve	-	-	-	(2,435,925)	2,435,925	-
Deferred tax impact on reevaluation				389,748	-	389,748
Deferred tax impact on other comprehensive
income	-	-	-	-	35,657	35,657
Other comprehensive income	-	-	-	-	(222,857)	(222,857)
Total other comprehensive income	-	-	-	(2,046,177)	2,248,725	202,548
Total comprehensive income	-	-	-	(2,046,177)	261,006,919	258,960,742
Reserve for reinvested profit	-	-	46,699,914	-	(46,699,914)	-
Closing balance at 31 December 2024	69,701,704	24,964,506	202,661,424	65,023,715	1,087,871,858	1,450,223,207

C2-Internal

The legal reserve is set in accordance with the provisions of the Companies Law, according to which, at least 5% of the annual accounting profit is transferred within the legal reserves until their balance reaches 20% of the company's share capital. If this reserve is used fully or partially to cover losses or to distribuite in any form (such as to issue new shares according to the Companies Law), it becomes taxable. The company's management does not estimate it shall use its legal reserve in such a way that it becomes taxable.

On 31,12,2024, the amount of legal reserves reaches the threshold of 20% of the company's share capital.

ZENTIVA S,A, reports as preliminary result for 2024, a turnover of 1,113.8 MRON, with an increase of 16.8% compared to the previous year, and an operational profit of 258.8 MRON, with an increase of 34.3%, compared to the previous period, mainly due to the increase in sales of goods.

C2-Internal

The financial statements are preliminary and not audited.

Main Financial Ratios at 31.12.2024
Ratio Name	Ratio Formula	Result
1, Current ratio	Current assets / Current liabilities	5.5
2, Debt ratios	Long term debt / Shareholder's equity x 100	0
	Long term debt / Total capital employed x 100	0
3, Debtors days ratio	Trade receivables / Net turnover x 360	155
4, Asset turnover ratio	Net turnover / Non current assets	3.7

NOTE REGARDING THE PRELIMINARY FINANCIAL STATEMENTS AS OF 31.12.2024

C2-Internal

Given the complexity of the process of preparing financial statements in accordance with International Financial Reporting Standards (IFRS), the company is still in the process of finalizing all the analysis and adjustments in this regard. As such, the results presented in this report are preliminary, based on the information available at the publishing date. These do not include the complete adjustments, and may be subject to change until they are finalized and presented for approval to the General Meeting of Shareholders.

The main elements which are potentially subject to change include, but are not limited to:

• Income Tax

• Operating Profit
• Reclassifications across assets and liabilities

Please note that the values presented are not yet audited - during the audit adjustments may be made which may influence the results of the financial year 2024.

General Manager SIMONA COCOS

Chief Financial Officer DANIEL NITULESCU