ANNUAL REPORT

Performance through Professional

www.aerostar.ro

Message from the President of the Board of Directors Message from the CEO

I. GENERAL INFORMATION
- 1. Bases of Preparation of the Annual Report
2. Governance
3. Strategy
4. Impact, Risk and Opportunity Management Double Materiality
II. SUSTAINABILITY STATEMENT
- 5. Environmental Information
- 6. Social Information AEROSTAR's Own Workforce Trial Chain Workers Affected Communities End-Users
- 7. Business Conduct
- 8. Additional Topic Information System Security
- 9. Appendices Abbreviations Reporting Compliance

MESSAGE FROM THE PRESIDENT OF THE BOARD OF DIRECTORS OF AEROS TAR S.A.

challengesovercome and significant achievements. In spiteof the complex globalcontext,wemanagedto deliveron our commitmentsand achieve our objectives. "The year 2024 was a year full of AEROSTAR is committed to the principles

Financiall y, our results for 2024 reflecthe resilience of our business. We continued to expandour presencein our customers' supply chains while developingthe capabilitiesneededto meetthechanging market demands.

of transparency and sustainabilit y, essential forourlong-term development. Beyondour financialachievements,we have paid particularattentionto the non-financial aspectsthatcontributeto thesustainable developmentof the company. We will continuetotakethenecessarydecisionsto ensurethecompany'sperformanceandat thesametimemaintainourcommitments to ourshareholders, employees,partnersand communit y, thus contributingto the economicandsocialdevelopmentof our region."

Grigore Filip President of the Board of Directors

MESSAGE FROM THE CHIEF EXECUTIVE OFFICER OF AEROS TAR S.A.

"In a dificult macroeconomicand geopoliticalcontext,ourobjectiveis to keep our development directions clear. The aviation market is witnessing a solid demand, but the industryis constrainedby factors such as insuficientproduction capacity, supply chain speci fic issues, rising produc tion costs,shortageof skilledtalentand the growing need for training.These issues have hindered the aviation industry from reaching its full potential.

Withregardto ourbusinesslines,for the manufactureof aeronauticalproducts,we technological levelof AEROSTARsupplied productsand meansof production. In termsof defenceproducts,we maintain our missionas a first-tier supplierto the Ministry of National Defence, con tinuing to developthe capabili ties relatedto the maintenance ofF-16 aircraft as well as the portfolio of services offered to the MApN. aim to expandour footprintin our customers'upplychainsandincreasethe In a macro-economicenvironmentwith

In the commercialaircraft MRO business line,weaimto strengthenourpositionin the market and increase the number of aircraft wecanservice.To achievethese goals, AEROSTAR continues its recruitment andprofessional trainingpolicyaswellas its investment polic y.

variousuncertainties, includingregional conflicts, budget deficits and a slow economicgrowthin the EuropeanUnion region, AEROSTAR will adopt the necessary decisions to ensure the company's performanceandthesustainabilityof our businessand we stronglybelievethat togetherwe will continue to build a successful future for AEROS TAR."

Alexandru Filip Chief Executive Officer

I. GENERAL INFORM ATION

1. BASIS OF PRE PARATION OF THE ANNUAL REPORT BP-1, BP-2

The companyAEROSTAR S.A. was established on 1 7April 1953 by Decision No. 1165 of the Councilof Ministers.Thecompany AEROSTAR S.A. wasestablishedon17 April1953by DecisionNo.1165of theCouncilof Ministers.Since1953it hasbeensuccessivelynamed URA-1953,IRAv ('Întreprinderea de ReparațiiAvioane')-1970,IAv ('Întreprinderea de Avioane')-1978,andAEROSTAR S.A. since1991,whenit wasregisteredasa joint-stock company at the Trade Register Office in Bacău.

The company'sunique EuropeanCompany Identification Number (EUID) is ROONRC.J04/1137/1991and the LEI code for its identification as a legal entity is 315700G9KRN3B7XDBB73;

TheAnnual Report o fAEROSTAR S.A. for the period January 1, 2024 - December 31, 2024, was preparedin accordancewiththe reportingregulationsin force,the EU Delegated Regulation2023/2772supplementing Directive2013/34/EUof theEuropeanParliament andof theCouncilwithregardto sustainablereportingstandards(CSRD),in orderto provide additionalinformationto all stakeholdersaboutthecompany'ssustainablestrategyandthe progressmadein its corporateprocessesandto transparentlyreinforceits commitmentto sustainable development and in compliance with the provisions of Law 24/2017 on issuers of financial instruments and market operations and Regulatio nA. S.F. No. 5/2018 of the Financial SupervisoryAuthority on issuers of financial instruments and market operations.

In our analysis took into consideration the activities related to our company's business lines.

OurSustainability Statement is preparedbasedon thedoublematerialityanalysisandin accordance with the CSRD Directive and the EFRAG IG Guidelines, Materiality Assessment. As partof it, wehaveanalysedthespecificmaterialtopicsthatwehaveexplainedin the chapters"Environmental Information", "SocialInformation"and"Professional Conduct"in accordance with the requirements of the thematic standards ESRS E1-E5, ESRS S1-S4. ESRS G1.

The following sustainability aspects have been included in the materiality assessment as issues of interest to our company: climate change, environmental issues (pollution, resources, circular economy),workingconditions,healthandsafetyof thecompany'semployees,afetyof our products and services,takeholders and professional conduct. We also take a particular interest in social performance and the company's position in relation to governance, the communit y, as well as additional topics such as cyber securit y.

The activities o fAEROSTAR are carried out at the registered office of the compan y, which

is located at 9 Condorilor Street, Bacău, postal code 600302. Since January 2018, AEROSTAR has registered a secondary registered office and workplace within the perimeter of the Iasi Internationa lAirport; in 2023 a new secondary registered office and workplace was opened in the Fetești Municipality;

AEROSTARdidnotomitanyinformationcorrespondingtointellectual property,know-howor innovation results.

The company's financial statements were prepared inaccordance with the International Financial ReportingStandards(IFRS)asadoptedby theEuropeanUnion,AccountingLawno.82/1991, republished ,asamendedandsupplemented ,andarepresentedinaccordanc ewiththerequirements ofIAS1,Order2844/2016fortheapproval oftheAccountingRegulations incompliancewith the International Financial Reporting Standards.

The bases of preparation and presentation of the financial statements are disclosed in Note 3; the separate financial statements prepared for the year 2024 are accompanied by the report of the independent financial auditor.

ThecompanyAEROSTARS.A. is listedontheBucharestStockExchangeunderthecode ARS, and the records of shares and shareholders are kept, in accordance with the law, by S.C. Depozitarul Central S.A. Bucharest.

Where appropriate, some of the information presented inaccordance with the aforementioned standardsi supplementedwithadditionalinformationin orderto understandtheanalysis performed or the context.

1.1. AEROSTAR's Activity and Products

AEROSTAR operates on three business lines that reflecthe organizational and management structureaccordingtotheservicesprovided.Thecompany'scorebusinessis manufacturing. The company's main object of activity is "Manufacture of civil aircraft and spacecraft" - CAEN code 3031;

Incivilaviationwesupplyaerostructures, componentsandassembliestotheglobalaviation industry.

Weareauthorizedtoperformmaintenanc eworkonBoeing737all seriesandAirbus320,ceo& neo family aircraft, as well as components.

We are a maintenance centre for F-16 airplanes for the RomanianArmy, a maintenance centre for Black Hawk helicopters for the Ministry of InternalAffairs, a maintenancentre for rocket launcher systems for the Ministry of National Defence and we are part of the national defence industry in accordance with Law 232/2016

AEROSTAR business lines

The equipment, assemblies and parts produced by AEROS TAR are used on a large number of commercialairplanes:AirbusA320, A321, A330, A350, BoeingB737,B787,B767, GulfstreamG650,DassaultF7X,BombardierChallenger600seriesandGlobal5000/6000 series.

By readapting to the new market requirements regarding the new production structure, aswell as the new qualityand environmental protectionrequirements, AEROSTAR maintainsits leadingpositionin Romaniafor themanufactureof aviationproductsandconsolidatesits position in the supply chain of major global aviation and aerospace companies.

In 2024,a newprogramdedicatedto landinggearcomponentswassuccessfullyintegrated, marking an important step in the development of manufacturing capabilities. Earlier last year, criticalcomponentsof the AirbusA320 andAirbusA321 modelswerelaunchedinto production. A specialtechnicalfeatureofthisprojectisthemachiningofthelockinggrooves,a process that is essential for the functionality ofthe components. Tomeet the high quality and efficiency requirements, an advanced technological solution had to be adopted.

AEROSTAR has a significant footprint in terms of business volume in the MRO Civi lAviation sector,beingan independentproviderof industrialmaintenanceservicesfor commercial airplanesof theAirbusA320ceo&neoandBoeingB737300-90family.AEROSTARisEASA Part-145 authorized with an extensive range of authorizations obtained from the civil aviation authorities.

In the year 2024 we celebrated 20 YEARSAS AREGIONALLEADER IN MRO SERVICES. The year2024representeda yearof growthanddevelopment, highlightingamongour achievements themilestoneof 100aircraftreleasedintoservicefromtheMAINTENANCE CENTER IN IAȘI after the completion of the maintenance work and a cumulative total of over 1200AIRCRAFT RELEASED INTO SE RVICE since the creation of the business line.

Defence Systems

Onthedefencesystemsbusinessline,AEROSTAR is a leadingsupplierto theRomanian Ministry of National Defence.

AEROSTAR is theMaintenanceCentreforF-16aircraftbelongingto theRomanian Army. AEROSTAR has constantly developed the necessary capabilities to strengthen its position as a supplier, increasing its expertise in the field of maintenance and upgrading of military aircraft, ground-to-ground launchsystemsandradio-locatingcommunicationsystems,aspartof the command-control systems.

In 2024,theBLACKHAWK S-70HELICOPTERBLACKHAWK S-70MAINTENANCE CENTER was inaugurated, a centre authorized by both the manufacturer - Sikorsky (part of the LockheedMartingroup)andtheNationalMilitaryAviationAuthority. Theyear2024also markedtheopeningof theMAINTENANCECENTERFOR THE HIMARSSYSTEMowned by the Romanian Ministry of National Defence.

AEROSTAR's presence in the Global Market

AEROSTAR operatesin theglobalmarketforproductsandservicesin theaerospaceand defence industry as an independent company. AEROSTAR's customers are located in Europe, Asia,Africa, USAand Canada.

In Canada - USA we supply aviation products and i nAsia andAfrica we provide civil aviation maintenance srvices. In Europe we provide maintenance srvices for civil aviation, aviation products (landing gear systems, mechanical parts, assemblies and sub-assemblies), electronic equipment and ground equipment.

InRomaniaweproviderepairservicesformilitaryaircraftandrepairof electronicpartsand components for military aircraft, upgrades, integrations and maintenance for military aviation systems, repair services of systems and launchers and civil aviation products.

1.2. Reporting the Results for 2024

Economic Indicators	31.12.2024	31.12.2023
Turnover (thousand lei)	584.004	506.294
Export sales (thousand lei)	458.805	410.908
Net profit (thousand lei)	95.725	93.028
Investment expenses (from our own sources), (thousand lei) 26.625		19.329

Social Indicators	31.12.2024	31.12.2023
Actual headcount	1.884	1.846
Total number of training hours	45.066	54.230
Value of scholarships granted	434.669	344.789
Scholarships granted by AEROS TAR to dual education	273	259
students

Environmental Indicators	31.12.2024	31.12.2023
Energy consumption*	10.490.930 KWh - purchased	9.814.667 KWh - purchased
	+ 2.395.678,5 KWh – produced	+ 2.375.889 KWh – produced
Target emissions 1*	0,0053 tons CO 2/ RON	0,0058 tons CO 2/ RON
Target emissions 2	12,027 tons CO 2	969,074 tons CO 2
Waste recovery	79% of the total produced	90% of the total produced

*reported to the current year's turnover

Economic Indicators	31.12.2024	31.12.2023
Sales by lines of business (thousand lei)	584.004	506.294
Manufacture of aeronautical products	265.462	255.364
Commercial aircraft maintenance	180.703	149.036
Defence systems	120.187	88.982
Other products and services	17.652	12.912

Economic Indicators	31.12.2024	31.12.2023
Sales by Markets (%)	100%	100%
Romania	21,44%	18,78%
Europe	62,79%	66,00%
Asia	10,63%	9,86%
Africa	2,59%	2,74%
Canada + USA	2,55%	2,62%

Economic Indicators	31.12.2024	31.12.2023
Investments (thousand lei)	26.625	19.329
Development expenses (thousands of lei)	21.850	17.371
Replacement expenses (thousands of lei)	4.780	1.958

REACH consortiums with uses in aviation and	Local Social Partnership Development Committee
defence	(CLDSP) Iași
Regional Consortium for Dual Education and	Regional Social Partnership Development Committee
Sustainable Development Bacău	(CRDPS)
"Education Cluster for Sustainable	County Employees
Development"	'Association of SMEs (PJIMM)
Association (C-EDD) Bacău	Bacău
The Social Dialogue	Aeronautical Companies
Commission attached to the	Association of Romania
Prefect's Institution of Bacău County	(OPIAR)
Local Social Partnership Development Committee (CLDSP) Bacău	RO-NANDTB -National AerospaceAssociation for Non-Destructive Testing in Romania, in which AEROSTAR is a founding member

CONSORTIUMS AND AFFILI ATIONS

AWARDS OBTAINED IN THE REPORTING YEAR

1. Atnational level,accordingtotheNATIONALTOPOFTHECOMPANIEScompiledbythe ROMANIAN CHAMBER OF COMMERCE AND INDUSTR Y, 31st edition 2024 , AEROSTAR ranks 1st in the industr y, in the category of very large enterprises, with the field of activity manufacture of aircraft and spacecraft.

2. In the D2P-DETAIL PARTS PARNER analysis made by the AIRBUS COMPANY for all its suppliers, ourcompanyisnominatedasa"CHALLENGER" PARTNER/SUPLIER" forperformance, quality, on-time deliver y.

AEROSTAR HAS FOUNDED:

A CENTERfortheassessment ofPROFESSIONAL COMPETENCIES acquiredbyothernon-formal routes.

Weareauthorizedtoorganizequalification coursesinfourspecifictradeswithintheaviation industr y.

WE HAVE THE BEST ASSESSMENT PROCESSES! WE CERTIFY YOUR COMPETENCE!

COMMUNITY ACTIONS CARRIED OUT BY OUR COM PANY IN 2024:

Donationof equipmentandteachingequipmentfor highschools,collegesandhigher educationinstitutionswitha technicalprofile,including:theTechnicalCollege"N.V. Karpen"Bacău,TechnicalCollege"MihailSturdza"Iasi,HighSchoolof Transportand Construction Iasi, Faculty of Aerspace Engineering Bucharest;

Providingpracticaltrainingandsponsorshipfordevicesandmaterialsforthelaboratory tests at the " VasileAlecsandri" University Bacău;

Support for organizing the meeting "Romanian Alliance of the Universities of Science and Technology" (ARUST), organized by the "Gheorghe Asachi" University Foundation Iasi.

Sponsorship forthesixth editionof the"IonIon Ionescude la Brad"RegionalContest on Economic Themes, organized by the " VasileAlecsandri" University";

Signing andmaintainingpartnershipagreements with7technical universitiesinthecountry: Bucharest, Iași, Braso v, Craiova, Galați, Suceava and Bacău, as well as with 6 technological high schools or technical colleges in Bacău and Iași, which allow students and their pupils to do internshipsin ourcompany, andat theendof theirstudiesto begivenpriorityfor employment in the company;

Allowingstudentsfromall7 universitiestotaketheirBachelor'sorMaster'sdissertation examson topicsprovidedby ourcompany, forwhichwesupportthedocumentingand drawing up of the corresponding papers.

PRODUCT QUALITY AND CONTINUOUS DEVELOPMENT

We focuson ourcustomersandend-usersthroughproductqualityandon-timedelivery, combining these efforts with continuous development to ensure that we meet the expectations of both our customers and all our stakeholders.

SYSTEM CERTIFICATIONS

The managementsystemimplementedin AEROSTAR is certifiedin termsof quality- to the requirements of EN 9100/ AS 9100, SR EN ISO/ EN ISO 9001 and to the requirements of the NATO qualityassurancepublicationsAQAP 2110andAQAP 2210,in termsof environment- to the requirements of SRENISO/ENISO14001andin termsof occupational healthandsafety- tothe requirements of SR EN ISO/ EN ISO 45001.

AUTHORIZATIONS

AEROSTAR holdstheauthorizationcertificate(issuedby theRomanianCivil Aviation Authority (AACR))as amanufacturin gorganizationthatcomplieswiththerequirement sof Regulation(EU) -Part 21, SectionA, Subpart G, being authorized to manufacture products, parts and equipment related to the scope of authorization.
AEROSTAR holdsa certificateof authorization(issuedby theRomanianCivil Aviation Authority (AACR))asa maintenanceorganizationcomplyingwiththerequirements of Regulation(EU)- Part 145, SectionA, Part 145, authorized toperform maintenance on products, parts andappliances specified in the scope of authorization.

AEROSTAR as a maintenance organization is also approved by the Civil Aviation Authorities of UK, Turkey, Morocco, USAand Bermuda.

AEROSTAR as a design organization in accordance with the requirements of Regulation (EU) - Part 21, SectionA, Subpart J is approved by the European Aviation SafetyAgency (EASA).

4.AEROSTAR holdstheMilitaryApprovalCertificateasa designorganizationentitledtoperform design activities under RMAR 21 and within the scope of approval.

As of 2021,AEROSTAR holdsa MilitaryCertificateof Approvalas a RMAR 145approved maintenance organization. In 2023 the scope of authorization was extended with maintenance work for Black Hawk S-70 helicopters.
In 2022,theNationalMilitaryAviationAuthorityauthorizedAEROSTAR as a militaryaircraft maintenancetrainingorganizationin accordancewith RMAR 147,SectionA, an organization authorizedto conductraining,examinationsin theauthorizedscopeandto issuecertificatesof acknowledgement to graduates.
AEROSTAR holds an authorization certificate - granted by the Romanian Civil Aviation Authority (AACR) - for specialized testing in the field of civil aeronautics.
Since 202AEROSTAR holds the authorization - granted by the Nationa lAerospaceAssociation for NDT(RO-NANDTB)- fortheTrainingandExaminationCentreforNDTpersonnelin thefieldof aeronautics, for themethodsof non-destructivetestingwithpenetratingradiation,ultrasound, eddy current, penetrating liquid, magnetic particle, infrared radiation, defined in the scope of authorization.

13 | AE R O S T A RS . A .

ACCREDITATIONS

AEROSTAR holdsaccreditations- awardedby the NationalAerospaceand Defence ContractorsAccreditationProgram(NADCAP)- for non-destructivetsting,chemical processes, heat treatment, heat treatment, shot peening and welding processes.

AEROSTAR's metrology laboratory is accredited by RENAR Accreditation Association - for calibrations in the accredited field.

GOVERNANCE

1.1. The role of the administrative, management and supervisory bodies GOV -1

Thesustainabilityinformationpresentedin thisreportreflectsthecompany'scommitment, values and goals, established for a sustainable business and for balancing the expectations of our shareholders with theneedsand concernsof ouremployees, membersof ourcommunity and all stakeholders.

We believethatby actingresponsiblywewill contributeto lastingeconomicsuccess.By pursuing sustainable development, we are moving towards a more secure future.

We are guided by our responsibility for sustainable development, we are consistent in applying thebestindustrypracticesand,in line withthepracticesof ourbusinesspartners,we transparently provideinformation, explanationsanddatain thesecategoriesof financialand non-financial information.

Customer satisfaction, complete safety for the users of our products and services, continuous improvement and increased environmental performance are the principles by which we guide ourselvesin our business.Our sustainabilityobjectives,correlatedwith the business environmentandglobaldevelopments, areembeddedin thecompany'soveralllong-term strategy.

AEROSTAR's corporate governance structures are organized on four levels: Shareholders - General Meeting of Shareholders Board of Directors Audit Committee Executive Management

General Meeting of Shareholders

The procedure for organizing and conducting the general meetings of shareholders is published on thewebsitewww.aerostar.ro,in theInvestorRelationsection,in orderto ensureequal treatment and the full and fair exercise of the rights of the shareholders. The company provides themwithall relevantinformationon theGeneralMeetingsof Shareholdersandon the decisionsadoptedby them,boththroughtheregulatedchannelsof communication(national newspapers, reports to the ASF and BVB) and in the special Investor Relations section on its website, which is easily identifiable and accessible.

AEROSTAR usesits bestefforts,in compliancewiththe requirementsof the relevant legislation, to facilitate the participation of its shareholders in the proceedings of the General Meetings, aswellasthefullexerciseoftheirights.Shareholders mayattendandvoteinperson at the General Meeting, but they may also vote by proxy or by correspondence.

The General Meetings of Shareholders were held in full compliance with the provisions of Law 31/1990onCompanies, Law24/2017onissuersoffinancialinstruments and marketoperations and the regulations issued by the applicable ASF, as well as any other incidental legal norm.

In 2024, as in previous years, when distributing profits, the company was equally mindful of distributing dividends to shareholders and allocating resources for the long-term development of the company.

Board of Directors

InAEROSTAR S.A., the Board of Directors determines the strategic orientation and ensures its implementation. At the sametime,the Boardof Directorsis responsiblefor ensuring compliancewithall applicablelegalprovisions,itsowninternalregulations, aswellas for adequate risk management and control.

In July 2024, the term of office of the members of the Board of Directors of AEROSTAR S.A. expired,soon4 July2024,anewBoardof DirectorswaselectedattheGeneralMeetingof Shareholders held on that date, for a period of four years. The election was conducted by secret ballot, with the duration of the new 4-year term of office starting on July 11, 2024 until July 10, 2028.

Thus, as of 11.07.2024, the new Board ofDirectors ofAEROSTAR hasthe following structure:

		The Board of Directors has 5 members
FULL NAME	POSITION	EXPERIENCE	DATE OF APPOINTMENT	END OF TERM OF OFFICE	POLITICAL AFFILI ATION
FILIP GRIGORE	President	Aviation Engineer	11.07.2024	10.07.2028	No affiliation
DAMASCHIN DORU	Vice-President	Economist	11.07.2024	10.07.2028	No affiliation
FILIP ALEXANDRU	Member	Aviation Engineer	11.07.2024	10.07.2028	No affiliation
TONCEA RADU-TUDOR	Member	Aviation Engineer	11.07.2024	10.07.2028	No affiliation
DOROȘ LIVIU-CLAUDIU Member		Economist	11.07.2024	10.07.2028	No affiliation

During 2024, AEROSTAR's Board of Directors was composed of five directors, two of whom hold executive positions within the company and three of whom are non-executive members.

Responsibilities of the Board of Directors

TheBoardof Directorsactsin accordancewiththeConstitutiveDeedandtheRulesof Procedure ofthe Board of Directors. The Board convenes at least once every three months or whenever required by the circumstances. The agenda of the meetings shall respect the role and duties of the Board in accordance with the Law and the Constitution.

The Boardof Directorsis responsiblefor settingthe company'smajoroperationsand developmentdirections,includingthoserelatedto sustainabilityaspects.It approvesthe SustainabilityReportand delegatesto the executivemanagementthe fulfilmentof sustainability objectives and targets and ensures close monitoring of this activit y. The Board is also responsible for the accounting and financial management system, as well as the income and expenditure budget, and adopts the financial plan for the current yea r.

Executive Management

AEROSAR is administered a unitarsystemwiththeexecutivenanagement the company delegated to the General Manager and the CEO. In relation to the organizational structure and the managements of Submity th managementructuræt the operation at velensureshe management activities a divisionalypeof organizationased n managementress theproduction and functional activities.

The executive management is ensured by the CEO and the Fimancial Direct The managementructuret the executive-operatiderablis completedly theother Divisional and Directorate Managers.

Duringheyear2024,somechangesccurredn theexecutivenanagementamelythe replacemently Chieffice of the comparasof 01.03.202andatthdevel o theextended anagemet tampo thesamedate, a changef the Directorf the Human Resource Separtment wellas thereorganizationthisdepartmenttotheLegaland Human Resources Department.

	The Executive Management has 9 members
FULL NAME	POSITION	POLITICAL APFION
FILIPALEXANDRU	Chief Executive Officer	No affiliation
DAMASCHDORU	Financial-Accounting Director	No affiliation
	ROGOLASILE LAURENTIU Director of Quality Directorate	No affiliation
VIRNA DANIEL	Director of Legal and Human Resources Dia@fitiataon
CRISTEANDRA	Director of Logistics Division	No affiliation
BUHAI OVIDIU	Director of Defence Systems Division No affiliation
IOSIPESCU SERBAN	Director of Aeronautical Products DivisNonaffiliation
VELESCU IOAN-DAN	Director of MRO Civil Aviation Division No affiliation
BRANCHE CATALIN BOGDANrector of Utilities and Infrastructure Divisifiliation

Thus, the updated management structure is composed of:

Thedirecparticipatiofthæxecutivæanagemeinthecompanyskareapitablesshan 1%. There are no litigations with the above-mentioned persons.

Audit Committee

PursuamotheprovisionsftheCorporationernance decorroborate with provisions Lawno. 162/2017an independeatiditcommitteeasbeenestablishemmsistingf two members appointed by the General Meeting of Shareholders held on July 04

The duties of the Indeptember Committee are those set out in its own Rules approved by the Board of Directors, supplemented by the provisions of Law EU Regulationo. 537/2014 Relations section.

Since2018an AudiCommitteeasbeemperating AEROSAR in accordanowiththe provisionsf Lawno. 162/2017n thestatutoryuditof annuafinanciastatements o

consolidated financial statements. The Audit Committee meets on a regular basis, at least four times a year, as well as exceptionall y, as necessar y.

1.2. Information provided to the company's administrative, management and supervisory bodies and sustainability aspects addressed by them

GOV-2

Inordertokeepuptodateonall essential companydata, theBoDmaintains apermanentliaison withtheexecutiveandoperationalmanagement .A thesametime,giventhedirectparticipation of twoof themembersof theBoD in theexecutivemanagement, theadministrationhas unrestricted and direct access to the company's information.

As a result, the BoD receives regular ad-hoc reports that focus on key areas of the financial and operational aspects, as well as on occupational health and safety, human resources, purchases, investments, research and development, community relations and philanthropic aspects.

Thisway, theBoDtakesintoaccountimpacts,risksandopportunities whensupervisingthe company's strategy and makes direct decisions on major transactions and its risk management processes.

1.3. Integrating sustainability performance into incentive schemes GOV-3

The remuneration policy for the members of the Board of Directors is based on the following key principles:

(a) Itshould contributeothe successful implementationof AEROSTAR S.A. strategyinthe short, medium and long term;

(b)It shouldensuretheproperinvolvementof theshareholders insettingtheremuneration policy and monitoring its implementation;

(d) It should prevent any situations of conflict of interest;

(e)It shouldprovidethenecessaryandflexibleinstrumentstoremuneratetheDirectorsin accordance with their responsibilities, competencies and performance; (f) It should ensure compliance with the applicable legal requirements.

For theactivitycarriedoutwithintheBoD, eachDirectoris entitledto a fixedmonthly remuneration, the net amount of which is approved by AGOAupon appointment to office and thereafter annually upon approval of the income and expenditure budget. The net monthly fixed remuneration approved by the General Meeting of Shareholders for the year 2024 is EUR 1.000 for each member of the Board of Directors.

As such,thereareno incentiveschemesor remunerationpoliciesrelatedto sustainability aspects in place for the members of the Board of Directors.

The Remuneration Policy is published on the website of AEROSTAR S.A. (www.aerostar.ro) andwillremainavailabletothegeneralpublicfortheentiredurationof applicabilityof the Remuneration Polic y.

1.4. Risk management and internal controls related to sustainability reporting

GOV-5

In AEROSTAR, themanagement of risks,impactsandopportunities is a continuousprocess thatis carriedoutto assessrisksandto addressthem,to identifynewrisksthathavenot occurred previousl y, to reassess risks that persist as well as to assess opportunities for growth and expansion.

The risks presented in Chapter I.4. " Management of Impacts, Risks and Opportunities" of this report,whicharedetailedatthelevelof eachthematicstandard, aretheresultof thedouble materiality analysis, as required by the ESRS/CSDR.

Forbetterunderstanding, wepresentbelowthestructureof AEROSTAR'sinternalcontrol system and its functions.

Management accounting Budgetary control Controlling Internal audit

Management accounting

In AEROSTAR thereis a department whichfulfilsthetasksof management accounting. It ensurestheinventoryof all assets,liabilitiesandequityitemson thecompany'sbooks. Throughout this period, the inventory activity has been carried out in compliance with the legal provisionsandregulations. Theresultsof theinventorieswererecordedin thecompany's accounts. There were no significant differences compared to the bookkeeping records.

Budgetary control

Budgetarycontrolis carriedoutby budgetofficers.In termsof budgets,thecompanyis organized into:

1) profit centres
2) cost centres

Budgetsaredefinedinthecompanybasedonactivityprogramscorrespondin gtothecompany's functions.

Budget control ensures:

that each budgeted indicator is within forecasted values the substantiation of any corrective actions.

On a quarterly basis, both the profit and the cost centres report to the executive management on their compliance with the budgetary provisions and on the required, timel y, efficient, effective and legal nature of the expenses the company incurs.

Controlling

InAEROSTAR the concept of controlling has been implemented and is continually developed as a superiorstageof budgetarycontrol.Controllingalsoensuresalignmentwiththecompany's mission and strategic objectives.

Internal audit

The company has an Internal Audit Department with members registered with the Chamber of FinancialAuditorsofRomania.AEROSTAR hasorganizedtheinternalauditactivityaccording to thelaw, in a separatecompartment in theorganizational structure,accordingto the organizational chart.

TheInternal AuditCompartment reportsdirectlytotheBoardof Directorsandperformsan independent and objective assurance and consulting activity designed to evaluate and improve the company's operations.

Theinternalauditactivityis carriedouton thebasisof theAnnualActivityProgramme approved by the Board of Directors.

The internal audit missions have confirmed the positive impact of the internal audit activity on the activity carried out within AEROSTAR..

The Interna lAudit Compartment regularly submits internal audit reports at the meetings of the Board of Directors and to the Audit Committee.

1.5. AEROSTAR Shareholders

Thesignificantshareholders ofAEROSTAR S.A.areIAROMS.A.BucharestandEVERGENT Investments S.A. Bacău. The summarized shareholder structure of the company on December 31, 2024 is as follows :

Shareholders	Number of shares	Percentage %
IAROM S.A.	108.876.903	71,50%
Evergent Investments S.A.	23.068.019	15,15%
Other shareholders	20.332.528	13,35%
Total	152.277.450	100%

Relations with shareholders and the capital market

In its relationshipwithshareholders, Aerostarhastakenintoaccountheprotectionand assurance of shareholders' rights, namely:

to participate in General Meetings directly or by proxy - by providing them with special proxies, voting ballots by correspondence, other useful information; to be treated fairl y, regardless of their holdings;

to receive dividends in proportion to the holdings of each shareholde r.

In relation to the capital market ,Aerostar has fulfilled all the reporting obligations arising from thelegalprovisionsby publishingthemandatorycontinuousandperiodicreportsin the electronicsystemof theFinancialSupervisoryAuthorityandtheStockExchange,on the company's website and through press releases.

In accordance with the provisions of the Corporate Governance Code, continuous and periodic information has been disseminated simultaneously in both Romanian and English. Shareholderscan obtaininformationaboutAerostarand maineventson the website www.aerostar.ro.

Alsoavailablefordownloadaretheannualandhalf-yearlyreportsforthelasttenyearsand quarterly reports for the last five years, current reports as well as other useful information for shareholders.

There are no changes in the shareholders' rights .There have been no major transactions entered into by the company with persons with whom it acts concertedly or in which such persons were involved during the relevant time period.

Aspects concerning the company's capital and management

There were no changes affecting the capital and management of Aerostar S.A. The Company was not unable to meet its financial obligations during this period. AEROSTAR's relationship with the parent compan y, other shareholders and with companies in which it has shareholdings.

Aerostar is a subsidiary of IAROM S.A. and therefore, the parent company consolidating the group's financial statements is IAROM S.A., with the unique identification code 1555301 and the registeredofficein Bucharest,39 AerogăriiBoulevard.The consolidatedfinancial statements for the financial year 2024 have been submitted to the A.N.A.F underegistration no. 770692053-2023/22.08.2024

The Parent Company will prepare and publish a set of consolidated financial statements in accordance with the applicable accounting regulations for the fiscal year ending 12/31/2024.

Affiliated parties

As of December 31, 2024 AEROS TAR S.A.'s shareholdings in other companies are as follows:

Name of branch/ subsidiary	Main	No. of shares	Voting rights	Value held by Aerostar	Financial information for the latest financial year (year 2023) for which the financial statements of affiliated companies have been approved
	activity	held by Aerostar		(thousand lei)	Sales lei)	Equity (thousand (thousand (thousand lei)	Net profit lei)
Airpro Consult S.R.L. Bacău	cod CAEN 7820	100	100%	10	12.863	771	556
Foar S.R.L. Bacău	cod CAEN 7739	408	51%	4	327	550	119
	TOTAL			14	13.190	1.321	675

AEROSTAR's shareholdings in these companies are recorded at cost.

Both companies in which AEROSTAR still owns shareholdings are registered in Romania. The transactions with the affiliated parties are disclosed in the Financial Statements in Note 26.

Code provisions		Compliant Non-compliantor partiallycompliant	Reasonfornon-compliance
A.1	x
A.2	x
A.3	x
A.4		x	ThreeoutoffiveBoardmembersarenon-executive.TheBoardof Directors doesnotincludeanindependentmemberandisvotedinthisstructurebythe GeneralMeetingofShareholders.
A.5	x
A.6	x
A.7	x
A.8	x
A.9	x		A total of 11meetings were held during 2024, out of which: 5meetings wereattended by all members of the BoD; - - At 5meetings4members were present, one wasabsent. - At one meeting3members were present, the other 2 beingabsent.
B.1	x		Thecompanyhasconstitutedanindependentauditcommitteeinaccordancewith Article 65of Lawno.162/2017
B.2	x		Themembersoftheauditcommitteeareindependentpersonselectedbythe AGAandhavecompetenciesinaccountingandstatutoryauditing.
B.3	x
B.4	x
B.5	x
B.6	x
B.7	x
B.8	x
B.9	x
B.10	x
B.11	x
B.12	x
C.1	x		All AGA decisionson the remunerationof the BoDmembershavebeen published.There isnowaseparatesectionintheBoDRules.
D.1	x
D.1.1	x
D.1.2		X	The information in this sectionisavailable on requestbut is not published on the company'swebsite.
D.1.3	x
D.1.4	x
D.1.5	x
D.1.6	x
D.1.7	x
D.2	x
D.3	x
D.4	x
D.5	x
D.6	x
D.7	x
D.8	x
D.9	x
D.10	x

Corporate Governance Compliance Table 2024

2. STRATEGY

2.1. Strategy, Business Model and V alue Chain SBM-1

AEROSTAR's strategy involves increased commitment to all sustainability aspects. In 2024,weassessedourstrategyin lightof thenewlegislativereportingrules,takinginto account the proposed commitments, the strategic needs of our business as well as the dynamics of the aviation industr y.

We thereforeaim to alignwithboththeglobalrequirementsandtheglobaltrend,by channellingoureffortson achievingthemaingoalof increasingsustainabilityby linking profitability with accountabilit y, increasing value in the short, medium and long term and thus enhancing the company's performance.

Through the development objectives we aim to achieve the targets in the multi-year planning derived from the company's strateg y, giving particular importance to the environmental, social and economic aspects and focusing on the efforts needed to minimize the negative impacts and to support and promote the positive ones.

Relevant data and performance indicators in line with the company's best practices, procedures and policies have been reported in the annual and periodic reports, following the guidelines of the legislation in force.

Priority objectives set at the top management level form the basis for the development of the annual plans by areas of activit y. The annual activity plans are dynamic and, depending on the context, adapt to the requirements and expectations of the stakeholders. In setting our company's objectives for the year 2024 we have taken into account the selective growth strategy as well as the company's mission to maintain our status as:

- Nationwidefirst-tierproviderofmaintenance, integrations andupgradesfordefence systems;

- Regional top provider of MRO services for commercial aviation,

- Significant supplierin globalizedproductionchainsforairframeandlandinggear system parts and subassemblies.

Our medium and long-term strategy focuses on:

Increasingperformancethroughcontinuousimprovementof activities,processes, products and services;

Continuouscompliancewith the environmentalprotectionrules,all quality requirements and national and international regulations;

Professionaldevelopmentof employeesin thespiritof integrity, innovationand initiative and maintaining a thriving social dialogue;

Ensuring a qualified workforce in line with the company's needs;

Increasing efficiency as well as reducing costs;

Maintaining the status of top employer;

Satisfying customer requirements and guaranteeing full safety for our employees; Creating value for the community and strengthening collaborative relationships.

SUSTAINABILITYSTRATEGY

WE PROTECT THE ENVIRONMENT

TOP EMPLOYER INVOLVEMENT IN THE COMMUNITY AND ITS DEVELOPMENT

OUR CUSTOMERS' SATISFACTION

Reducing the atmospheric emissionsof greenhousegases andemissionsof volatileorganic compounds; Reducing the environmental impact byimprovingwasterecoveryand educating all employees in the spirit ofminimizingwastegenerationin order to improve the environmental performance; Partiallysupplyingthe energy needed for the company's processesfrom greensources through our own photovoltaic parks We respect the environment, nature and natural resources! Engagingour employeesin professional development and supportingan inclusiveculturein whicheveryemployeecanrealize their full potential and contribute with our help, thus ensuring the evolution of tomorrow's professions; Improvingthequalityoflifeatwork, ensuring the health and safety of our employeesandmaintainin g athriving social dialogue; Promotinga cultureof safetyand health at work. Continuedtrainingandprofessional development programs Werespect,supportandguarantee equal,non-discriminatory treatment throughequalopportunitie sforalour employees! Constantdialoguewiththelocal communitiesn thespiritof our desideratumto influencethe community in a positive way; Developingpartnershipsto attract young people for internships and work placements; Continuedscholarshipprograms for dual education pupils Improved professional and social integration. Actionfor thebenefitof the community! Developing partnerships so that wemayrepresent a reference point for our customers; Strengthening our position as a strategicplayerintheciviland militaryaviationindustryand creatingsustainableadded value; Transparent practices based on integrity and business ethics Focusoncustomersandendusers We uphold the highest standard of professional ethics! For more details, see chapter Environmental Information ESRS E1-E5 For more details, see chapter Social information Company's own workforce - ESRS S1 For more details, see chapter Social Information Affected communities - ESRS S3 For more details, see chapter Value chain Social Information

End-users-ESRS S4

Business Model SBM-1

Committedtoa sustainablefuture,ourtopmanagement hasadoptedanambitiousstrategyandan integrated business model, based on a systemic process approach and RISK-based thinking.

Thecompany'smanagement policyis focusedon maintaininga solidcapitalbasefor continuous developmentin the contextof the globalmarketand competitiveadvantagethroughquality, capabilities, highleveltechnologiesto supportsustainableandorganizeddevelopment andthereby achieve strategic objectives.

Thecompany'sbusinessmodelhasnotbeenchangedasaresultof theinternational context,butthe wayofconductingactivitieshasbeenadaptedinrelationtothespecificnatureoftheflowsofactivities.

We fully complywith the applicablenationaland international legislation,actingconstantl y, intensively and transparently to pursue growth opportunities and secure access to new programs in the field of aviation and defence.

Value Chain

SBM 2

The analysis of our value chain was carried out from the point of view of the aspects that can generate material impacts that our company's activities can bring to the value chain or to our stakeholders.

Withinthecompany, the valuechainisseenasanintegratedandstrategicprocess,acontinuousflowof activitiesand workprocessesaimednot only at operationalefficiency, but also at reducing environmental impactsandincreasingsocialwell-being. Thedownstreamvaluechainincludesboth domestic and external suppliers. The upstream value chain includes our customers and end-users.

Taking into account the company's field of activity, we collaborate with a wide range of suppliers of products and services, both in the civil and military aviation field, as well as with suppliers of products and services in the general industry field, suppliers that operate both in Romania and abroad.

The"SupplierCodeof Conduct"clearlyexpressestheexpectationswe haveof oursuppliersin accordancewith our own values,principlesand ethicalstandards.Suppliercommitmentsare constantly communicatedand can be found on AEROSTAR's website at https://www.aerostar.ro/suppliers.

In terms of social aspects, we continue to focus on increasing the positive impacts for the benefit of the community by creating a responsible value chain.

No cases of non-compliance with the UN Guiding Principles on Business and Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work or the OECD Guidelines for Multinational EnterprisesInvolving AffectedCommunitieshavebeenreportedin AEROSTAR'soperationsor the operations of its upstream or downstream value chain partners.

At the same time, there are no incidents of business-related discrimination the grounds of gender, race or ethnic origin, nationalit y, religion, disabilit y, age, sexual orientation or other relevant forms of discrimination or incidents of harassment.

Collaborationandopencommunicationwithall partnersarefundamental to buildingtrustand developing long-term sustainable initiatives.

2.2. Stakeholders' interests and views SBM 2

AEROSTAR S.A. is an organization with a significant presence both for the environment and the place whereweoperate,aswellasin thepublicimageandconsciousness of thelocalcommunit y, which perceivesus as a prestigiousenterprise, a topemployerandanimportantplayerin theeconomic landscape.

Through our organizational values, we promote responsible management, which aims to achieve the definedobjectiveswithoutnegativelyaffectingourstakeholders. Ourproductsandservicesarethe resultofworkthatissubjecttorigorousmanagement systemsalignedtointernational standardsandfor which we have certificates of authorization for: quality management according to ISO 9001 integrated withenvironmental management accordingtoISO14001,aswellasoccupational healthandsafety management according to ISO 45001. We have also implemented the standard for safety management. In orderto implementandmaintainmanagement systemsaccordingto thesestandards, wehave

developed system procedures, we set objectives annuall y, draw up specific action plans and carry out the planned actions to achieve our objectives.

Our company is aware that at different points in time and depending on the development of contextual aspects,thestakeholders' requirements andexpectationshavedifferentrelevanceto thecompany's functionsandsubsystems. Themonitoringandanalysisof stakeholderinformationis carriedout systematically and the results of the analysis serve as the basis for the annual update of the company's 5 year Development Strateg y.

Our companyhas includedin its Rulesof Organizationand Functioningboththe relevant organizational contextualaspectsas well as theinterestsandexpectationsof our stakeholders, identifiedin relationto thesharedinterestsof: ourcustomers,hareholders, suppliers,employees, certification bodies, technical and regulatory authorities, local communit y.

Moreover,giventheirparticularimportancein providingthemostimportantresource- thehuman resource, the educational institutions, in fact assimilated to the communities, are considered as distinct stakeholders, namely: the pupil communit y, the student communit y, the teaching staff community and the scientist communit y.

The AEROSTAR policies,code of conductand ethicsand othertypesof informationare communicatedtothestakeholders throughexternalorinternalchannels,appropriateforthelevelof relevance, interest (high/medium/low) and the category of audience to which they are addressed.

In thefollowingtablewe presentourcompany'sstakeholdermap,thetypeof interaction, the communication with them and the level of interest.

STAKEHOLDERS (A→Z)	LEVEL OF INTEREST	(LOW, MEDIUM, HIGH)TYPE OF INFORMA TION/COMMUNIC ATION/INTERACTION
SHAREHOLDERS/ INVESTORS	High	Specific dialogues Regular reports, briefings and presentations General meetings of shareholders Investor conferences Meetings/Debates Company's website Stock exchange reports Official addresses Press releases E-mail/fax
ANALYSTS/ BANK REPRESENT ATIVES	High	Specific dialogues Stock exchange reports Company's website E-mail /fax
EMPLOYEES	High	• Internal online platform of the company • Providing information through the company's biannual magazine • Communicating through the company's trade union organization; • Providing information via the company's Electronic System • Meetings • Direct meetings and face-to-face interactions; trainings on specific topics • Written internal communications • Communications via radio station • E-mail/fax • Posters on general display panel and notice boards • Specific actions in accordance with the hierarchical levels
PROFILE ASSOCIATIONS/ NGOs	Medium	Joint projects with partners from research institutes Sponsorships and donations Support for cultural and sports activities E-mail/fax
CUSTOMERS	High	Contracts Periodic briefings, KPI analysis, audits, authorizations Workshops Conference calls, e-mail/fax Press releases Social media (Facebook, LinkedIn, Instagram) Meetings at trade fairs Company website
COMPETITORS	Medium	Meetings at trade fairs Responsible marketing and sales practices
Trial COMMUNITYHigh		Social media (Facebook, LinkedIn, Instagram) Sponsorships and donations Events organized by the community E-mail/fax

STAKEHOLDERS (A→Z)	LEVEL OF INTEREST	(LOW, MEDIUM, HIGH)TYPE OF INFORMA TION/COMMUNIC ATION/INTERACTION
SUPPLIERS	High	Contracts Specific dialogues, teleconferences, e-mail Supplier evaluations Periodic briefings, teleconferences, e-mail/fax Press releases Social media (Facebook, LinkedIn, Instagram) Meetings at trade fairs Company website
CERTIFICATION BODIES TECHNICAL AND REGULATORY AUTHORITIES	High	Specific dialogues Audits Procedures Periodic briefings Teleconferences, e-mail/fax E-mail/fax
POTENTIAL EMPLOYEES	High	Company website Careers page where job vacancies are posted Professional competency assessment centre Social media (Facebook, LinkedIn, Instagram)
POTENTIAL CUSTOMERS AND SUPPLIERS	High	Meetings at trade fairs Networking sessions E-mail/fax
PRESS/ MASS-MEDIA/ SOCIAL MEDIA	Medium	Press releases Conferences/Events Interviews E-mail/fax
TRADE UNIONS	High	Regular meetings Briefing and consultation sessions Specific dialogues
UNIVERSITIES/ TECHNICAL COLLEGES	High	Internships Sponsorships for the educational process R&D project partnerships Visits Direct briefings Social media (Facebook, LinkedIn, Instagram) E-mail/fax Company website

2.3. Material impacts, risks and opportunities and their interaction with the strategy and business model

SBM 3

The overall approach to the company's processes in the light of the management systems aligned to the relevantstandardsi basedontheidentificationandassessment of risksandthemanagement of the potential impact arising from the assessed risk, consistently following the principle of mitigating the level of risk and minimizing the potential negative impact, while at the same time capitalizing on the opportunities generated by the risks through improvement measures.

The major risk of not achieving the turnover forecasted in the company's strategy induces a risk of job reduction through business downsizing .As a result of careful and effective management of this risk by thecompany, jobsarein factmaintained, andin realitytheimpactis positive,in thesenseof the company's contribution to the well-being of the local communit y, through the income provided to the employees, through significant taxes and duties paid to the state budget.

Furthermore, one of the three business lines designed to ensure the attainment of the turnover foreseen in the company's current strategy aims at maintaining our company's status as a supplier of defensive aviationandgroundsystemsfor theRomanianMinistryof NationalDefence.Thus,AEROSTAR contributes tothe security of the territory and the population, which induces apositive impact on the community and an opportunity for the company to maintain its image and good reputation in the field.

Theriskof damageto theenvironment thoughthecompany'sactivitieshasa potentiallynegative impact on the people in the local community who live or work around the company's sites (head office, factories, workplaces). In order to minimize this potential negative impact, the company has adopted a robustqualityand environmental policy, it has implementedand maintainsan Environmental Management System, which complies with the requirements of the SREN ISO 14001 standard and is certified in accordance with this standard. Specific actions that lead to ensuring the effectiveness of the environmental management system and its improvement include the assurance that the environmental policy and objectives are compatible with the company's strategic context and direction.

Thenecessaryhumanresource,estimatedfora 5-yearhorizon,is animportantcomponentof our Strategy and an integral part of it. The company's risk of failure to assure its qualified human resource actuallyinducesopportunitiesandpositiveimpactfor thelocalandregionalcommunit y, as it is expected that the workforce will be sought primarily in these communities. These considerations lead us to support the communities' right to education andculture and underpinour initiatives and actions to support the development of vocational school education, as well as technical secondary and university educationinthegeographical area,includingdualeducation, thusensuringa positiveimpactonthe communities.

Anothersignificantriskthatcontributestotheadaptationof thebusinessstrategytothechanging contextual aspects and the assessment of impacts is the risk of image or reputational risk.

3. IMPACT, RISKAND OPPORTUNITY MANAGEMENT

3.1. Double Materiality (Significance)

Impacts,risksandopportunitiesrelatedto environmental, socialandgovernanceaspectshavebeen identifiedandassessedinlinewiththeESRSstandardsandtheimplementatio nguideIG 1 -Materiality Assessment.

The connection between the identified impacts, associatedrisks and opportunities is presented for each theme/sub-theme separately in Chapter II Sustainability Statement.

For thisreporta jointteamwasassembledin 2024.This teamundertookan extensive,welldocumented process of identifying relevant information related to the sustainability of our company, gatheringandanalysingkey data,whilemakingsurethatall necessaryinformationis properly documented, accurately reflects our environmental and social impacts, and assessing material aspects and financial impacts.

Thus, during these meetings the following aspects were analysed:

The actual and potential, positive and negative impacts of our own operations on people or the environment (inside-out) through assessments based on severity and likelihood criteria; Financialmateriality- thelikelihoodandseverityof thefinancialimpactsrelatedto the identifiedrisks,thecompany'sdependencies (outside-in)andthedeterminationf financial materialit y.

Additional sustainability aspects.

An aspect is material ifit meets the defined criteria for impact materiality (significance), orfinancial materialit y, orboth.Insupportoftheseactions,wehave regulated theworkmethodthroughaninternal instruction, thereby reinforcing the team's activities.

The team has paid close attention to the impacts that the company's operational activity may generate, but also to the associated risks and opportunities.

In AEROSTAR, thepeoplewhoparticipatedin themeetingsessionsarepartof theexecutive management, aremembersof theextendedmanagement teamorarerepresentatives of therelevant departments for each thematic topic.

For this report, the team was made up of the following persons:

1. Alexandru Filip CEO
2. Doru Damaschin Financial-Accounting Director
3. Andrei Damaschin ChiefAccounting Officer
4. Laurențiu Rogoz Director of Quality Directorate
5. Daniel Vîrnă Director of Quality Directorate
6. Andra Cristea Director of Logistics Division
7. Cătălin Branche Director of Utilities and Infrastructure Division
8. Claudia Sfîrlea Head of Environmental Protection Office

9. Sorina Palko - Head of Industrial Engineering and Management Office

10. Raluca Sofian Head of Human Resources Office
11.Cătălina Costache QACoordinator Purchasing Analyst
12. Răzvan Bejenaru Legal Counsellor

13. Elena Costache - Head of Marketing and Development Service

3.2. Description of the processes to identify and assess material impacts, risks and opportunities IRO -1

In line with the methodology presented previousl y, in our analysis we took into account the following aspects:

Trends in the market in which we operate, contextual aspects, company priorities in relation to strategy, business model and stakeholder requirements.

Analysisof sustainabilityissuescoveredby thethematicESRS:climatechange,pollution, waterandmarine resources, biodiversityandecosystems, biodiversityandecosystems, circular economy,ourownworkforce,valuechainworkers,adequat ecommunities ,consumer sandendusers, business conduct and value chain analysis.

Identification and analysis of other matters of interest to the company Analysisandassessment of actualorpotentialmaterialimpacts(aspects)andtheirseverity, identification of risks and opportunities and potential financial effects. Analysis of the results through final consultation.

Evaluationof theanalysis,preparationof thedoublesustainabilitymatrix,interpretationof results and setting of targets.

Each aspect has been documented, according to its importance, ina working document produced for this project. The criteria for assessing impacts and determining their materiality are based on the IG 1 - MaterialityAssessmentImplementationGuide and take into accountthe magnitude,scope, irremediabilit y, likelihood and severity of the impacts.

Thecriteriaforassessingtherisksanddeterminingthematerialityof thefinancialimpactsconsider severity levels in terms of magnitude and probability levels. Financial effects refer to effects that may affectperformance, financialposition,liquidity, accessto capitalandcostof capital.Reputational damage may generate financial effects.

The results of the analysis have been recorded in the working document and will be subject to periodic review.

We consider this assessment to be important in the company's strateg y, objectively analysing both our needs and the likelihood of generating impacts through our own activities.

We alsoaimto holdregularmeetingsthroughout2025where,basedon thecurrentneedsof the company and cross-checked against the list of aspects presented in this report, we will make updates or changes, as appropriate.

Thetablebelowshowsthesustainabilityaspectsthathavebeensubjecto thedoublemateriality analysis and those that are not relevant or not within the scope of our work.

ESRS E1-E5 Environment
Thematic standard/theme	Sub-theme	Sub-sub-theme	Comments
ESRS E1 Climate Change	Adaptation to climate change		Covered by the double materiality analysis
	Mitigation of climate change		Covered by the double materiality analysis
	Efficiency		Covered by the double materiality analysis
ESRS E2 Pollution	Air pollution		Covered by the double materiality analysis
	Air pollution		Covered by the double materiality analysis
	Soil pollution		Covered by the double materiality analysis
	Pollution of living organisms and food resources		Covered by the double materiality analysis
	Substances of concern		Covered by the double materiality analysis
	Substances of very high concern		Covered by the double materiality analysis
	Microplastics		Not covered by our scope of activity
ESRS E3 Water and marine resources	Water resources	Water consumption	Covered by the double materiality analysis
		Water sampling	N/A
		Discharge of water	N/A
	Marine resources	Discharge of water into oceans	N/A
			N/A
		Extraction and use of marine resources

ESRS E4-E5 Environment
Thematic standard/theme	Sub-theme	Sub-sub-theme	Comments
ESRSE4 Biodiversity and ecosystems	Determining factors of the direct impact on the biodiversity decline	Climate change	Not applicable to our organization. The activities carried out within our organization do not impact protected natural areas, vulnerable habitats or ecosystems.
		Changing the use of land, fresh water and sea
		Direct exploitation
		Invasive alien species
		Pollution
		Other
	Impacts on the status of species	Examples: Size of species population
		Examples: Risk of global extinction of species
	Impacts on the extent and state of ecosystems	Examples: Soil degradation
		Examples: Desertification
		Examples: Soil permeability
	Impacts and dependencies on ecosystem services
ESRS E5 Circular economy	Resource inputs, including resource utilization		Covered by the double materiality analysis
	Resource outflows related to products and services		Covered by the double materiality analysis
	Waste	Hazardous waste generation	Covered by the double materiality analysis

ESRS S1-S4 Social information
Thematic standard/theme	Sub-theme	Sub-sub-theme	Comments
		Safe jobs	Covered by the double materiality analysis
		Working time	Covered by the double materiality analysis
		Adequate salaries	Covered by the double materiality analysis
		Social dialogue	Covered by the double materiality analysis
		Working conditions Freedom of association, the existence of works councils and employees' rights to be informed, consulted and participate	Covered by the double materiality analysis
		Collective negotiation, including the share of employees covered by collective agreements	Covered by the double materiality analysis
		Work-life balance	Covered by the double materiality analysis
		Health and safety	Covered by the double materiality analysis
ESRS S1	Own workforce	Gender equality and equal pay for equal work work of equal value	Covered by the double materiality analysis
		Training and development of competencies Covered by the double	materiality analysis
	Equal treatment and opportunities for all	Employment and inclusion of people with disabilities	Covered by the double materiality analysis
	Other work-related rights	Measures against violence and harassment in the workplace	Covered by the double materiality analysis
		Diversity	Covered by the double materiality analysis
		Child labour	Covered by the double materiality analysis
		Forced labour	Covered by the double materiality analysis
		Adequate housing	N/A
		Confidentiality	Covered by the double materiality analysis

		ESRS S2 Social information
Thematic standard/theme	Sub-theme	Sub-sub-theme	Comments
ESRS S2 Value chain workers	Working conditions	Safe jobs	N/A
		Working time	N/A
		Adequate salaries	N/A
		Social dialogue	Covered by the double materiality analysis
		Freedom of association, including the existence of works committees	Covered by the double materiality analysis
		Collective negotiation	N/A
		Work-life balance	N/A
		Health and safety	Covered by the double materiality analysis
	Equal treatment and opportunities for all	Gender equality and equal pay for equal work work of equal value	Covered by the double materiality analysis
		Training and development of competencies	N/A
		Employment and inclusion of people with disabilities	N/A
		Measures to combat violence and harassment in the workplace	Covered by the double materiality analysis
		Diversity	N/A
	Other work-related rights	Child labour	Covered by the double materiality analysis
		Forced labour	Covered by the double materiality analysis
		Adequate housing	N/A
		Water and sanitation	Covered by the double materiality analysis
		Confidentiality	Covered by the double materiality analysis


Thematic standard/theme	Sub-theme	Sub-sub-theme	Comments
	Economic, social and cultural rights of communities	Adequate housing	Covered by the double materiality analysis
		Adequate food	N/A
		Water and sanitation	Covered by the double materiality analysis
		Land-related impacts	N/A
ESRS S3 Affected communities		Security impacts	Covered by the double materiality analysis
		Freedom of expression	Covered by the double materiality analysis
	Civil and political rights of communities	Freedom of assembly	N/A
		Impact on human rights defenders	N/A
	Rights of indigenous peoples	Free, prior and informed consent	N/A
		Self-determination	N/A
		Cultural rights	N/A
	Impacts related to information for consumers and/or end-users	Confidentiality	We respect the right to privacy and freedom of expression. AEROSTR complies with GDPR data protection and legislation. AEROSTAR conducts its business-to-business activities under agreements that ensure the confidentiality of its business partners.
		Freedom of expression	Covered by the double materiality analysis
		Access to (quality) information	Covered by the double materiality analysis
ESRS S4 Consumers and end-users	Personal safety of consumers and/or end users Social inclusion of consumers and/or end users	Health and safety	Covered by the double materiality analysis
		Personal security	Covered by the double materiality analysis
		Child protection	N/A
		Non-discrimination	Covered by the double materiality analysis
		Access to products and services	Covered by the double materiality analysis
		Responsible marketing practices	Covered by the double materiality analysis

		ESRS G1 Information on governance
Thematic standard/theme	Sub-theme	Sub-sub-theme	Comments
		Corporate culture	Covered by the double materiality analysis
		Whistleblower protection	Covered by the double materiality analysis
		Animal welfare	N/A
ESRS G1 Professional conduct	Corporate culture	Political engagement and lobby activities	Covered by the double materiality analysis
		Business conduct	Covered by the double materiality analysis
		Supplier relationship management, including payment practices	Covered by the double materiality analysis
	Corruption and bribery		Covered by the double materiality analysis

Additional topic	Sub-theme/impact	Comments
	Security incident	Covered by the double materiality analysis
Computer system security	GDPR data	Covered by the double materiality analysis
Export/import controls		Covered by the double materiality analysis

LIST OF MATERIALMATTERSAND INTERPRETATION OF RESULTS

Inourassessment, weanalysed25sub-themesof theEuropeanStandardandaddedtwoadditional topics: cyber security and export/import controls.

Theresultsof ourassessment haveprovideda comprehensiveoverviewof thematerialmattersand risks that are likely to have financial effects and could impact our business. We have addressed these impacts, risks and opportunities in the thematic standards covered in the sustainability statement.

We interpret theresultsin closecorrelation with ourneeds, payingattention tothepotential impacts that our activities may generate, whether positive or negative. In doing so, we ensure that the decisions we take are well-informed and balanced, taking into account both the opportunities and risks involved.

The analysis matrix revealed the following:

1. Potential negative matters with financial effects:

2 matters that could have a significant financial impact on the organization.

2. Real negative non-material matters

9 matters that are considered negative but do not have a material/financial impact and are continuously monitored

3. Potential negative non-material matters:
7 matters that could have a negative impact, but have no material/financial impact 4. Real positive non-material matters
18 matters that are positive, where we will implement concrete actions to maximize their impact 5. Potential positive non-material matter:

1 matterthatcouldbepositivebutdoesnothavea significantmaterial/financial impacton the organization.

FINANCIAL MATERIALITY

REAL NEGATIVE (non-material)

REAL POSITIVE (material)

Climate change We produce energy from renewable sources

Substances of concernFair working conditions

Pollution Support for vocational high school and university education Corporate culture

Two main areas of interest stood out in light of their severity thresholds.

These areas of interest are top priorities for our compan y.

End User Domain - The safety of our products

is a priority for the company and is closely linked to our company 's adherence to quality standards and continuousimprovement. Oneof thestrategicobjectivesof AEROSTAR is to makeproductsand provide services that offer full safety for our end users.

Own Workforce Domain - Health and safety at work

are key matters for AEROSTAR. We are committed to providing a working environment in which all employees can perform their activities in a safe and healthy manne r. This involves implementing and maintainingsafetyprocedures, providingadequatetrainingto preventaccidentsandconstantly improving working conditions.

No detailed breakdown of the anticipated financial effects in monetary terms has been made for the year 2024, and the monetary forecasted risks will have to be validated during the year 2025, following an extensive monitoring and analysis to be carried out for the two priority areas.

Wewillfocusourattentiontheseareas,byimplementing specificmeasurestomeetboththe operational requirements and the priorities dictated by the financial materialit y.

3.3. MDR-P Policies,AMORRons, MDR-M IndicatoTargeDR-T

Theresourcessededorriskmanagementeallocated ithinthecompag withauthoritie responsibilitfertherelevantunctionandlevelsestablishedhegeneralrameworfkrdea withrisksrelieson understandingeneeds ndexpectations thestakeholdeins achievin organization's expected results.

In our company:

o Responsibilitiferthequality and on in the pects swellas Risk Managemen assigned/delegated to the Director of Quality and Environment.
o Responsibilitifier thesocial personnel coupation healthandsafet, anti-discrimi anddiversitmatterareassigned/deleqated e HumarResourceDirectoras anare interference, these responsibilities are correlated with:
o Responsibilities thelegalcompliance, marright and anti-corruption danti-bril matters, which are assigned/delegated to the Legal Office.
o Responsibilities on the matters of sustainable use of resources, reduced resources are assigned/delegated to the Director of the Infrastructure an
o Responsibilities for the compliance measures related to the avoidance of assigned to the Financial-Accounting Directo
o Corporate Governance responsibilities are assigned to the General Secre

Thecontextualspectandtheirimpactvershortmediumandlong-timaorizons longwith company's priorities in relation to the stakeholders' requirements over the sam the significantisksand opportunities latedo the business nodelserveas the basisof company's development stadled these are subjectigoing risk analysis and risk n measureandarealsosubjecto a complexandin-depthnalysiatthetimeof theannualstra update.

We followpoliciespecificallyimassessing anaginan dmitigating otenti significant negative impacts, maintaining and enhancing positive impacts.

Therisksdentifiein termsf qualit, environmentdsafetyarehighlighted theRiskReg created in the company as a requirement for the implementationwith the company and management he Risk egister used or ecording en milicants ksassessed the bas aninternation of theactions lanned manageach isk. Thestatus factions assess duringhemanagement views onducted nuall During hes eviews on going and emer risks and opportunities are identified, as well as the actions that need to be ta

Process-specificshboardmonthly eportand currensummary eportare presentedt operationaleetingseldduringheyea. Thecompanynonitorsheiprogressy meansf Quality-Environment Dashboard, which is prepared and analysed on a weekly

Throughpecifiannuallansriskmitigatioactionareestablishemaplannedo thattheac impacbf a riskthatwouldneverthelessaterializeouldbe belowthemateriality.reshold company internatuditsas well as supervisor with the relevantuthor competembdiesnonitotheimplementationitheriskmanagementtiomlanshighlightin non-compliances and requiring the identification of new actions to address the

Anothertool weuseistheQuarterl yManagementReportwhichanalysestheturnover,productivit yand added value ratios, resource management, quality and environmental issues, commitments and related risks, resulting in corrective or improvement measures.

We communicateheresultsof theManagement Reportsacrossthecompany, bothto disseminate positive results, so that the methods and means used to achieve those results are adapted and extended throughout the company, and to identify concerted action by all profit centres in order to improve the overallorganizational performance. Improvementis planned,whilethe recommendations and measures establishedin themanagement reports materializeintospecificaction plans.Improvement actions are reinforced through appropriate information and communication, and general monitoring is exercisedthroughtheinternal control systemwiththefollowingcomponents :managementaccounting, budgetary controlling, managerial controlling, internal audit.

The effectivenessandsuitabilityof thisgeneralapproachareprovenby thefact thatin 2024 AEROSTAR S.A. did not register any negative impact of its activities on the communities in terms of economic, social and cultural rights, civil and political rights, or other specific rights.

In order to manage the risk of environmental damage, we continuously make efforts to maintain our Environmental Management System certification, so that from this perspective we can make sure that the potential negative impact is not material. Our objectives in this regard are: To make products and provide services that offer full safety to their users; To increase the environmental performance.

Ourenvironmental management systemis continuallymonitoredby itscertifyingauthoritythrough surveillanceaudits,whichidentifyanynon-conformitie sandmakerecommendation sthatareclosedby a root cause analysis, followed by corrective action plans and improvement plans, as applicable.

To manage the risk of job cuts through downsizing, as a result of a significant non-achievement of the forecasted turnover, the company is constantly carrying out actions based on the generic cycle Plan -Do - Check- Update,whichcoversboththegeneralframeworkof the strategyandthe current activities.The WeeklyProductionActivityDashboardis thetool by whichthecompany'stop management monitors results against the approved budget and planned monthly targets, identifies and analysesin realtimetherisksof non-achievement of productionandsalesandcanidentifyand effective remedial measures in a timely manne r.

II. SUSAINABILITSTATEMENT

4. ENVIRONMANINFORMON

4.1. CLIMTE CHANGE - E1

Transition plan for climate change mitigation

E1-1

Theenvironmentalicyandthelinesof actionstablishedrtheimplementationthegen managemenbjectivesaveledto theimprovement thecompany savironmentærform through the following actions:

o Investmentssafeequipment terms foccupation walt and safetyandenvironment friendlytechnologies ollution prevention nd environment protection prevention emissions to air/water/soil, other specific environmental risks and issues
o Accurateompletioandvalidationf all regulatedo greenhousg emission certificates;
o Providing part of the energy for the company's processes from green sou photovoltaic parks.

AEROSAR has a dedicated department in charge of verifying the compliance w legislationnd coordinatimel activities pecifico Environmentarotection EROSAR compliedwith the environmentledgislations well as with the requirements the Integ EnvironmentauthorizationeWaterManagemenuthorizatianttheGreenhous®æEmiss Authorizationeresultafthe ontrolsonducted the commissioner the Baca Environm Guard confirm ROSAR's compliance with the applicable legal and regulatory r

Theactivitiewithenvironmentalpacarekeptunder.org/w/internalperationale respectively analysintheresults fronitorimentariedutin accordano theprovisionef theenvironmentærmitsn airemissionsyastegenerationpisegenera discharges.

A full transition plan is still under development, but our organization has alway and commitments the environmento we have takensuccessivetepsto optimizænd consumption, such as:

ThermatehabilitatiofibuildingacadewithsandwichanelsAbout70%of all build have been rehabilitated, resulting in an area of about 24.600 square met Their installation improved the thermal insulation of the buildings by ab Replacing dgeneration iler withmodern MWhboilers with igheen ergefficier with dual burners allowing operation with methane gas or diesel.

Complete replacement of the entire heat distribution network: the old ex replacewithsteepipespre-insulatedthpolyurethaffeamaccording SREN253w lowthermadonductiy)tguaranteedwithstankemperaturesto 160°Cfora minin period of 30 years.

The commissioning of a photovoltaic park with a total capacity of 3 MW electricityomrenewabkourcesThisway, thecompanyasachievedheobjective contributes to increasing susțaine dintring global warming effects and ach neutralization.

Material impacts, risks and opportunities and their interaction with the business model SBM-3, IRO -1

Inthecontextof theindustryinwhichweoperate,wepayparticularattentiontomanagingclimate change issues through regular internal audits and annually through external audits.

By meansof thedoublematerialityassessment, AEROSTAR hasanalysedtheadaptationtoclimate change and the risk of increased utility costs due to the investment inthe purchase of GHG emission allowances to cover the deficit, with the anticipated financial effects described in E1-9.

Atthesametime,asarealpositiveimpactwementionthatweproduceenergyfromrenewablesources, measures that have led to a decrease of about 20% in purchased energ y.

Sub-theme	Impact (I)	Risk (R)
Adaptation to climate	Real Negative	Risk of increased utility costs due
change Our activities generate to investment in the purchase of GHG emission allowances to greenhouse gas emissions cover the deficit within the permissible limits
	Real Positive We produce energy from renewable sources	Maintaining the company's reputation and image in the community
		The impacts under analysis are not material and the risks are not financially material.

Theimpactsanalysedby ourorganizationarenotmaterial.However,weconstantlytakeactionto support climate change mitigation and contribute to the sustainable growth of our business.

Description of the processes to identify and assess material climate-related impacts, risks and opportunities IRO-1

In AEROSTAR, theprocessof identifyingand assessingmaterialimpacts, risksandopportunities is carriedoutsystematicallythroughourintegratedmanagement system,whichensuresa consistent approach in all our activities. We continually monitor, analyse data, identify and manage the relevant environmental aspects,whilealigningwiththecompliancerequirementsandourobjectivesfor sustainable development.

Climate change policy actions and resources E1-3

An industrial and building energy trial was carried out in 2023 to get an overview of the potential for optimizing energy consumption, including as a basis for preparing a medium and long term strategic decarbonizationplan. In 2024, an Action Plan was approved,which includesboth the recommendations for improvement resulting from the audit and our own feasible measures to increase energy efficienc y.

Climate change mitigation and adaptation targets E1-4

In our objectives, we aim to optimize the management of resources and reduce consumption. Tothis end,weareconstantlystrivingto makeournaturalgasandelectricityconsumptionmoreefficient through long-term targets. Thus, we make sure that we use resources ina responsible and sustainable way, therebycontributingto environmental protection. Ourcommitmentto sustainabilityhrough energy efficiency enables us to remain competitive and add value to our customers and communities.

Year	Natural gas consumption (SCM) in relation to turnover	TARGETS Increase/decrease compared to reference year	Electricity consumption (KWh) in relation to turnover	TARGETS Increase/decrease compared to reference year
2017	0,0047	-	0,0438	-
2021	0,0054	↑14,89%	0,0305	↓30,36%
2022	0,0035	↓25,53%	0,0200	↓54,33%
2023	0,0025	↓46,80%	0,0193	↓55,93%
2024	0,0027	↓42,55%	0,0179	↓59,13%
2025	0,0046	↓2%	0,0350	↓20%
2030	0,0045	↓3%	0,0328	↓25%

Energy consumption and mix E1-5

Evolutionof electricityandnaturalgasconsumptioni theperiod2021- 2024,comparedto the reference year 2017

Year	Electricity consumption - Evolution compared		Natural gas	Evolution compared
	kWh		tothe reference year consumption - SCM to the reference year
2017	14.915.197	-	1.597.221	-
2021	11.507.262	↓22,84%	2.032.028	↑27,2%
2022	9.355.856	↓37,27%	1.616.998	↑1,24%
2023	9.814.667	↓34,19%	1.286.783	↓19,43%
2024	10.490.930	↓29,66%	1.617.631	↑1,27%

Energy consumption from fossil fuels

Diesel consumption in 2021 (for the production of thermal agent) = 10.821 litres Diesel oil consumption in 2022 (for the production of thermal agent) = 1.433 litres Diesel consumption in 2023 (for the production of thermal agent) = 183.531 litres Diesel consumption in 2024 (for the production of thermal agent) = 196 litres

Theincreaseindieselconsumptionfortheproductionofthermalagentin2021-2023wascausedbythe instability of the natural gas market due to geopolitical instabilities. The consumption of diesel oil in 2024 referred strictly to the tests that are periodically conducted at the plant.

Gross emissions of GHG categories 1, 2, 3 and total GHG emissions E1-6

Gross GHG emissions

Category 1 (Scope 1) covers fuel and natural gas consumption and represents direct carbon emissions. In total, our Scope 1 carbon footprint in 2024 amounted to 3103 tons of CO ²e. Category 2(Scope2)represent selectricit yconsumption,andincludesindirectcarbonemissions.Total carbon emissions for Scope 2 in 2024 amount to 12,027 tons CO ²e. For a more detailed understanding of our impact on the environment, we are in the process of defining andadaptingourScope3 methodologywiththefinalaimof obtaininga calculationincluding emissions from the supply chain.

Evolution of carbon footprint (Scope 1 and Scope 2) between 2021-2024

	Scope 1 (t CO2e)	Evolution compared to last year	Scope 2 (t CO2e)	Evolution compared to last year
2021	3945	-	1952,207	-
2022	3114	↓ 21,06%	1587,22	↓ 18,69%
2023	2983	↓ 4,2%	969,074	↓ 38,94%
2024	3103	↑ 4,02%	12,027	↓ 98,75%

Total GHG emissions: 2021 – 5897,207 t CO ²e 2022 – 4701,22 t CO ²e 2023 – 3952,074 t CO ²e 2024 – 3115,027 t CO ²e Total GHG emissions in relation to turnover: total GHG emissions in metric tons of CO ² equivalent ---------------------------------------------------------------------------------

turnover

Total GHG emissions in metric tons CO ² equivalent = Scope 1 GHG emissions + Scope 2 GHG emissions

2021 – 0,0000156 2022 – 0,0000100 2023 – 0,0000078 2024 – 0,0000053

AsofAugust2023,thecompanyhasoptedforarenewableelectricitysupplierthatproduces91,82%of its electricityfromrenewablesources.As a result,thecarbonfootprintfor Scope2 is on a steep downwardtrend,withCO2e/kWhemissionsnow around1,3 g/kWhcomparedto theprevious supplier's reported value of around 170g/kWh.

Initsfirstyearofoperation, thephotovoltaicparkdevelopedatourcompany,withaninstalledcapacity of 3MW, has generated an energy production of about 2.396.000 kWh, thus contributing toincreased sustainability and reduced environmental impact.

Internal carbon pricing

E1-8

AEROSTAR monitors the quarterly trading price of a GHG certificate on the EEX (European Energy Exchange) platform).

Anticipated financial impactsfrommaterial physicalndtransitionrisksandpotential climate-related opportunities E1-9

Thefinancialeffectof thedecreasein thefreeallocationof GHGallowanceswillbeknownin the upcoming years, meaning thatAEROSTAR will have to purchase allowances to maintain compliance with the regulated requirements .At the end of 2024, there were 9615 GHG allowances available in the RUEGESaccount,andtakingintoaccountanaverageof 3000retrievedallowancesperyear,this reserveintheaccountcancoveratmost3 moreyears.Basedonthelasttradingpriceof 2024asof 30.12.2024, this results in a financial impact of approximately 200,000 EUR for the purchase of 3000 GHG allowances.

Climatechangebringsbothsignificantrisksto ouroperationsandopportunitiesfor sustainable development. We understand the importance of assessing the financial impact of these factors and we are actively working to integrate this aspect into our business strateg y.

We anticipatehathe main risks to our organization include the impact on raw material supply caused by prolonged droughts and possible increases in energy costs due to stricter regulations. At the same time, thetransitiontoagreeneconomycouldresultinadditional expendituretoimplementenergy-efficient technologies and low-emission standards.

The opportunities we anticipate include reducing long-term operational costs through the adoption of renewable energy sources.

We will include the results of future assessments in our annual reports to ensure transparency and to communicate our strategic decisions.

4.2. POLLUTION - E2 Material impacts, risks and opportunities IRO-1

Naturalresourceprotectionis a priorityfor themanagement anddevelopmentof ourbusiness. AEROSTAR's maingoalis to minimizetheeffectsof its activitieson theenvironmentthrough pollution prevention, efficient use of resources and energy, effective waste management and protection of ecosystems. Our activities are regulated in terms of environmental protection and are supervised by the controlling authorities.

All sustainability aspects specified in the thematic standard (water , air, soil pollution and substances of concern)havebeenassessedthroughthedoublematerialityanalysis.Thisapproachhasonceagain assured us that all sources of pollution are properly assessed and monitored.

Water pollution is monitored by analysing the quality of wastewate r. For air pollution monitoring, gas emissions are assessed and the necessary measures are planned in order to reduce/prevent them. Soil pollution is addressed through responsible management of substances and compliance with applicable legal requirements and those imposed by REACH.

Weaimforfulltransparenc y, andforthisreason,althoughtheimpactsassessedarenotmaterialandthe risksanalyseddidnotresultin financialimpacts,wearedisclosingthemostrelevantaspects.We engageourselvesto provideclearanddetailedinformationto demonstrateour commitmentto sustainability and accountabilit y. Even in the absence of material impacts, we believe it is essential to be openandtransparent incommunicatingouractionsto protectheenvironmentandmitigatethe associated risks.

Sub-theme	Impact (I)	Risk (R)	Opportunity (O)
Air pollution	Real negative Very low pollutant emissions (below legal limits)	Reputational risk if legal limits are exceeded (sanctions from environmental authorities)
Substances of very high	Real negative	Non-compliance with the applicable	Transition to new, more
concern	The use of substances of concern - authorized under REACH	legal requirements and those imposed by the REACH Regulation	environmentally friendly processes

The impacts being analysed are not material and the risks are not financially material.

AEROSTAR generatesemissionsin verylowquantitiesof pollutants(belowthelegallypermitted limits) and as for the use of substances of very high concern, a detailed description has been given in section E2-5.

Pollution actions and resources

E2-2

Environmental impact management is a priority in our company's activities. In this respect, all actions taken are aligned with the legal requirements and provisions of the applicable environmental permits. We implement measures for monitoring and controlling the environmental fctors in accordance with the regulations in force, while providing the necessary financial resources through an annual budget.

Thisbudgetincludestheexecutionof regularmonitoringandcompliancewithalllegalobligations regarding pollution mitigation and prevention.

Overtimemanyinvestmentshavebeenmadeonourcompany'ssitetotreatandpreventpollution, including:

o two neutralization plants that deplete the wastewater and physically process the residual sludge by dewatering-pressing,
o oil separators,
o a reverse osmosis plant,
o upgradedfumeexhaustsystemsfor specialprocesslinesequippedwithnewgeneration scrubbers for gas scrubbing,
o enclosed, environmentally friendly paint booths with dry filter system for air purification, etc.

Targets related to pollution E2-3

AEROSTAR'spollutionobjectivesarein linewiththerequirements imposedby thelegislationin force.The main goal is to keep our activities within the legal limits set for the environmental factors by implementingproactivemonitoring,controlandpreventionmeasures.Throughthisapproach,we ensurethatouroperationscomplywithenvironmental standards, thuscontributingtoaminimalimpact on the environment.

Pollution of air , water and soil

E2-4

Themonitoringof emissionstowastewaterandairemissionsis carriedoutin compliancewiththe applicablelegalrequirements andtherequirements of theenvironmental permits,by anauthorized company with whic hAEROSTAR has a contract. Test reports issued for the 2024 monitoring revealed compliance with the permissible limits for each pollutant analysed.

Allhazardouschemical substancesandpreparationsusedinAEROSTARaremanagedaccordingtothe applicableregulationsin force.Hazardouschemicalsubstancesandpreparationssubjectto the REACHregulationareusedincompliancewiththeconditionsimposedbytheauthorizations isuedby the European Commission.

Evolution of emissions of volatile organic compounds from 2021 to 2024 compared to the reference year 2017

Year	Volatile organic compound emissions (kg)	Evolution compared to the reference year	Volatile Organic Compounds emissions relative to turnover (kg/RON)	Evolution compared to the reference year
2017	23.212	-	6,82	-
2021	8.997	↓61,23%	2,39	↓64,95%
2022	6.605	↓71,54%	1,41	↓79,32%
2023	4.442	↓80,86%	0,87	↓87,24%
2024	7.709	↓66,78%	1,32	↓80,64%

The decrease in emissions of volatile compounds in recent years is due to the use of water-based paints fromtheAutomatedPaintLine.The paintsusedherecontainon average3% volatileorganic compounds(VOCs),comparedtoa conventional solvent-basedpaintwhichcontainsabout60-90% volatile organic compounds.

Soil monitoring iscarried out in accordance with the Integrated Environmental Authorization and the determinedvalueswerewithinthepermissiblelimitsimposedby theIntegratedEnvironmental Authorization.

Substances of concern and substances of very high concern E2-5

Our organizationhas alwaysbeenconcernedwithreducingthe environmental impact,paying particular attention to special processes where hazardous substances are used. Over the years, we have constantl yinvestedinupgradingourproductionlines,lookingforsaferalternativesfortheseprocesses, even beforethesehazardousubstancesbecamerestrictedunderREACH.We mentionthat AEROSTAR has made the transition from chromic anodizing to tartaric-sulphur anodizing - TSA since 2015andinthefollowingyearstothinfilmsulphuranodizing(TFSA)andcontinuestheactionsof transition to processes that do not use CrO ³ (chromium trioxide).

This commitmentreflectsourproactivevisionandresponsibilityfor theenvironmentandour employees' safet y.

At thelevelof theEuropeanUnion,concernshavearisenaboutthesubstanceCrO³ (chromium trioxide), whose authorization for use was annulled by the European Court of Justice on 20.04.2023, and we are currently in a transitional period.

Thisaspecthasgeneratedamajorriskintermsofthecontinuityofsomespecificprocessesthatusethis substance, so an analysis team has been assembled within the company to find solutions to replace this substance in the future.

Following the annual review on the use of substances covered by Annex XIV REACH, the following findings were noted:

1. The use of chromium trioxide:
Theauthorizationdecisionissuedat theendof 2020fortheCTACsubconsortiumhasbeen cancelledasof April2024,andthe2017statusof theauthorizationprocessforchromium trioxide hasbeenrevertedbacktothe statusof2017.Therefore, anewdecisionofthe European Commissionisawaited,andmeanwhile wecanusechromiumtrioxidefrom thesuppliersinthe originalCTACsubconsortium. FromtheoriginalCTACsubconsortium, twoconsortiawere subsequentlyformedwhichincludeAEROSTAR suppliers- ADCR and CTACsub2. AEROSTAR hascollaboratedwithbothconsortiathroughoutthisperiodby providingthe requesteddata.Thereviewreportof theADCR consortiumis acceptedby ECHAandis currentlyin theanalysisphase.TheCTACsub2consortiumsubmitteda newapplicationfor authorization. We are tracking the authorization process of the two consortia.
Safran LS has applied for substance authorization ad AEROSTAR is co-applicant with other suppliersof SafranLS.FortheSafranapplication, thedraftauthorizationdecisionhasbeen published on the ECHA website and the final decision will be published.
2. The use of other substances covered by the Annex XIV REACH:
Theprovisionsof theauthorizationdecisionsfor theremainingchromatesshallstillbe complied with;
Purchases of these substances can only be made against the technical report drawn up by the end-using facility;
Theauthorizationdecisionfor sodiumdichromateexpiredin September2024.TheADCR ConsortiumhassubmittedreviewreportsforcontinueduseafterSeptember2024.AEROSTAR hasprovidedtheinformationrequestedby theconsortiumon theconditionsof useof the substance and may use the substance until a new decision is issued.
In 2026, the authorization decision for strontium chromate and two other chromates contained in primersis dueto expire. Oursuppliers haveaskedfor our supportin preparing thereview reports and we have provided the requested information whenever required.

AEROSTAR has made and will continue to make considerable efforts throughout this process in order to be able to maintain production and to comply with all European regulations concerning the use of controlled substances.

Anticipated financial effects from pollution-related impacts, risks and opportunities E2-6

Theenvironmental impactsrelatedto airemissions,noisegeneration, landdischargesandwaste generationareanalysedeveryyear, whilealsoassessingtheenvironmental aspectsanddeterminingthe material aspects.

Themonitoringcarriedoutduring2024hasconfirmedtheongoingeffortsmadeto minimizethe environmental impacts. The measured values fall within the legally defined limits.

4.3. WATER AND MARINE RESOURCES – E3

Actions and resources related to water and marine resources E3-2

Inordertoensurea sustainablemanagement of waterresources, ourcompanytakesthefollowing action:

Continuous monitoring of water consumption to identify and reduce losses;
Implementation of technological solutions that optimize water consumption in the operational processes;
Propercollectionandtreatmentof wastewaterin compliancewiththeapplicablelegal requirements;
Promoting water reuse initiatives where possible, thus contributing to reducing the impact on the natural resources.

These actions are supported by an annual budget allocated for monitoring, equipment maintenance and continuous improvement of the water management infrastructure.

Targets related to water and marine resources E3-3

As partof our sustainabilityefforts,we haveset targetsrelatedto themanagement ofwater consumption.

Year	Total water consumption (mc)	Evolution compared to the reference year	Total water consumption in relation to turnover (cubic meters/RON)	Evolution compared to the reference year
2017	128.751	-	0,3784	-
2021	97.717	↓24,10%	0,2596	↓31,39%
2022	103.709	↓19,44%	0,2220	↓41,33%
2023	126.634	↓1,64%	0,2501	↓33,90%
2024	114.134	↓11,35%	0,1954	↓48,36%
2025	-	-	0,3670	↓3%
2030	-	-	0,3594	↓5%

Water consumption E3-4

Therearenoinstabilityphenomena, activeorstabilizedlandslidesonthesiteandinitsvicinity, the stratification of the terrain being uniform both horizontally and verticall y. Theterrainof thesitehasanalmosthorizontalsurface,withverygoodgeneralstability, andthe company'spremisesareequippedwithseweragenetworksforthecollectionof technological, domestic and rainwater wastewate r. The site is not in the path of torrents and is not flood-prone.

Actions taken to reduce water resources usage and efficiency measures implemented:

removal of the cast iron pipes from the drinking water supply network and their replacement with HDPE pipes guaranteed to operate without failures for at least 50 years;
modernizationofthe controlanddistributionfacilitiesfordrinkingwaterfromitspointofentry intoAEROSTAR, upstream to the water towers and its delivery to the internal consumers;
replacement of defectivehydrantsandreplacement of non-functional undergroundhydrants with overground hydrants with improved functionality;
theprompttroubleshootingof damagesoccurredinthedrinking,industrialandrecirculated water systems.

	Drinking water	Industrial water	Total consumption
2021	61.502	36.215	97.717
2022	57.854	45.855	103.709
2023	82.483	44.151	126.634
2024	71.536	42.598	114.134

Total water consumption in m ³

Anticipated financial effects of material water and marine resources-related impacts, risks and opportunities

E3-5

In2024theriskof damagetowaterpipeswasidentified,andimplicitlytheriskof increasedwater consumption. Tothis end, measures have been taken to remove the cast iron pipes from the drinking water supply network and replace them with HDPE pipes guaranteed to operate without failure for at least 50 years.

4.4. BIODIVERSITY AND ECOSYSTEMS - E4

Transition plan and consideration of biodiversity and ecosystems in strategy and business model E4-1

The site of our operations is located in an industrial area with no direct impact on the protected natural areasorvulnerablehabitats. However, weareawareofourresponsibilitytowardsthesustainableuseof natural resources and reducing the impact on the local biodiversit y.

Actions and resources related to biodiversity and ecosystems E4-3

Although our location has no impact on the protected ecosystems, we aim to integrate biodiversity into our sustainability strategy by:

Conducting a regular assessment of the impact of our activities on the local environment.
Collaboratingwith environmental organizationson projectsthatsupportthe regional biodiversit y.
Promoting a responsible supply chain, that includes sustainability criteria for the suppliers.

4.5. RESOURCE USE AND CIRCULAR ECONOMY - E5

Material impacts, risks and opportunities IRO-1

As part of our sustainability strategy, we are focused on increasing waste recovery and educating all employees in the spirit of minimizing waste generation to improve environmental performance.

Sub-theme Impact (I)	Risk(R)	Opportunity(O)
Potential negative Resource inputs, included		Opportunity: improving efficiency from the design
Excessive use of raw materials		phase for the cutting and routing processes so that less waste results from processing

The impacts analysed are not material and the risks are not financially material.

We monitor both hazardous and non-hazardous waste, recover it and transfer it through an authorized recycling compan y, in compliance with the legislative provisions .The management of all categories of waste is carried out in compliance with specific legislative requirements .All waste generated from the activitiescarriedout withinthe companyis storedseparatelyin appropriatecontainersand subsequently handed over to authorized operators for collection, recover y, disposal.

Actions and resources related to resource use and circular economy E5-2

Duringtheyear, monthlyandperiodical reportsarepreparedonwastemanagement (typesofwasteand quantitiesgenerated, methodsof recovery)bothfor internalreportingwithinthecompanyandfor reporting to the environmental authorities, in accordance with the requirements of the environmental permits held.

Periodicall y, internal audits are carried out to determine compliance with the applicable environmental protection legislation, as well as external audits to supervise the Environmental Management System. For efficient waste management, various activities are carried out, such as:

Identification and classification of waste according to the environmental legislation in force;
Conductingwastemanagement auditsin accordancewiththeapplicablelegislation(OUG 92/2021) and implementing programs to prevent and reduce the quantities of waste generated;
Providingspecificcollectioninfrastructure (wastebins,dustbins,containers, retentiontanks, spaces/areas specially designated for temporary waste storage);
Identifyingandanalysingthebestrecoverysolutionsavailableonthemarketforthewaste generated.

Targets related to resource use and circular economy E5-4, E5-5

	Total waste generated (kg)	Total waste generated as a percentage of turnover (kg/RON)	Hazardous waste (kg)	Non-hazardous waste (kg)	Recovery rate
2021	875.672	0,0023	197.665	678.007	80%
2022	1.225.611	0,0026	208.313	1.017.298	84%
2023	1.673.684	0,0033	259.201	1.414.483	90%
2024	1.711.620	0,0029	554.610	1.157.011	79%

Otherresourceoutputsconsistof recoveredpackaging,declaredto the Environmental Fund Administration a monthly basis, mentioning that these quantities are already included in the waste situation at the level of AEROSTAR. Thus, in 2024 the quantities generated were: - plastic - 641 kg,

paper/cardboard 3.441 kg,
metal 1.517 kg,
wood 65.531 kg.

Anticipated financial effects from material resource use and circular economy-related impacts, risks and opportunities

E5-6

Legal sanctions and regulations can arise in relation toresource use: non-compliance with resource use and waste management regulations can lead to fines and financial losses. Waste disposalcostscanhaveafinancialimpact:inefficientwastemanagement mayinvolvehigher

taxes or additional costs for storage and recycling. Energy efficiency represents an opportunity provided by the circular economy: the implementation of circular solutions reduces energy consumption and the related costs, thereby contributing to long-term savings.

POLICIES E1-2, E2-1, E3-1, E5-1

Our policy is focused on prevention through measures intended to minimize risk. Through our quality and environmental management system certified in accordance with the SREN ISO 140001 standard, we havesetourselvestheobjectiveof improvingenvironmental performance. To thisend,we have implementedan"Accidental Pollution PreventionandFightingPlan"at theBacăuandIașisitesaswell as a"Planforpreventingandreducingthequantitiesof wastegeneratedfromourownactivities" .Atthe same time, we carry out actions in the following areas:

permanent awareness of environmental protection among employees; investing in environmentally friendly technologies and equipment that is safe from the point of view of occupational health and safet y, there is a chapter in the company's budget dedicated to environmental expenditure;

pollution prevention and environmental protection, as regards: collection, disposal, prevention, recycling, reuse of waste, handling and use of hazardous products and chemicals, prevention of emissions to air/water/soil, other specific environmental risks and aspects; partial supply of energy required for the company's processes from green sources, through its ownparkswithphotovoltaicpowerplants.Ourqualityandenvironmental policyaimsto increaseenvironmental performanceandincludescommitmentsrelatedto environmental protection, including pollution prevention and responsible use of resources.

Ourorganizationrecognizestheneedto adopteffectivepoliciesforclimatechangemitigationand adaptation.Weunderstandthatthesepoliciesareessential toensurethelong-termsustainabilityofboth our business and the environment. Our aim is to comply with all legal regulations so that our actions and decisions contribute to reducing our carbon footprint.

Our company is committed to managing water resources responsibl y, with a primary focus on efficient use and reducing consumption wherever possible. We implement measures to regularly monitor water consumption and promote technological solutions that support the reduction of water loss and reuse of water in internal processes. We also make sure that wastewater discharge complies with all applicable legal regulations, thus protecting natural resources and local ecosystems.

The circular economy and waste management represent an aspect of great importance to us, due to the responsibilitywehaveassumedtowardstheenvironment. To carryouttheoperationsof handling, collection,segregation, balingandtemporarystorageof wastegeneratedonthesite,wecollaborate with companies specialized in waste management, which provide equipment and human resources to carry out these operations.

All categoriesof wastearemanagedin compliancewithspecificlegislativerequirements. All waste generatedfromtheactivitiescarriedoutwithinthecompanyarestoredseparatelyin appropriate containers and subsequently handed over to authorized operators for collection, recovery and disposal.

6. SOCIAL INFORM ATION

6.1. AEROSTAR'S OWN WORKFORCE General information ESRS 2

WithinAEROSTAR S.A., the rights and responsibilities of the employees, as set out in the Collective LabourAgreement(CCM)andin theRulesof OrganizationandFunctioning, areformulatedin accordance with therespect for human rights and the right to work, in line with the principles outlined in the International Bill of Human Rights and the International Labor Organization (ILO) Declaration on Fundamental PrinciplesandRightsatWork. Thesearereflectedin thelabourlegislationandare governedby theprinciplesof consensusandgoodfaith,whichunderpintheinteractionsin labour relations.

Our strategic objectives have been defined taking into account the needs of our employees at different stages of their career path, linked to the need to attract, retain, motivate and continuously develop at work.

WithinthecompanyoperatestheLegalandHumanResourcesDirectoratewithresponsibilities for ensuringthe requiredpersonnel,carryingout specificevaluations,professionaldevelopment, conducting training necessary for certification, certifications, personnel authorization, OHS activities and other activities adjacent to these functions.

Interests and views of stakeholders SBM-2

AEROSTAR S.A. is constantlyfocusedon complyingwithnationaland Europeanlegislation regarding labour relations, relations with the social dialogue partners and informing and consulting the employees.Therelationsbetweentheemployerandtheemployeesareregulatedby theCollective Labor Agreementatthecompanylevel,aswellasby theindividualemploymentagreementsof the employees.

Our regulations provide a transparent framework that establishes a work environment intrial every employee feels safe, engaged and valued. Our human resources policy is employee-centred, providing employeeswithopportunitiesfor advancement andaccessto professional developmentprograms tailoredtothespecificsoftheirwork.Moreover, weencourageemployeestocommunicateopenlywith boththeircolleaguesandthe AEROSTAR S.A.management team,aswebelievethatonlythrough effective communication we can achieve our internal goals and those set in the relationship with our collaborators.

Material impacts, risks and opportunities and their interaction with the strategy and business model SBM-3

Theimpacts,risksandopportunities associatedwithourownworkforceareessentialtoensurethe long-term sustainability of our organization.

In our double materiality analysis, we assessed:

Fairandmotivatingworkingconditions: itisimportant toensuresafeworkingconditionsfor employees to minimize the risks of accidents and occupational diseases.

Healthandsafety:Ensuringa safeandhealthyworkingenvironmenthelpsreducethe employee turnover, which can improve the employees' productivity.

Employment rights: Respecting labourights, including the right to adequate salaries, decent workingconditionsandprotectionagainstdiscriminationandharassment, is essentialfor maintaining a motivated and loyal workforce.

Trainingandskillsdevelopment : Investmentsin employees' professional development and skillstraininghelpstoimprovetheorganization's performanceanditsadaptationtothechanges in the business environment.

Theseaspectsnotonlyreducerisksandimprovethesustainabilityof theorganization, butalso contributeo attracting and retaining talent, improving the organization's image and reputation, aswell as fulfilling social and ethical responsibilities.

Sub-theme	Impact (I)	Risk (R)	Opportunity (O)
Adequate	Real Positive	No material risks related to fair and motivating	Improving the company's reputation
salaries	Fair and	working conditions have been identified .	by increasing the existing
	motivating		employees' motivation and
	working		commitment towards the company.
	conditions
Social Dialogue	Real Positive Respecting and	Non-compliance with labour rights or discriminatory practices may lead to loss of company reputation,	Creating a culture of participation by consulting the employees on the
	promoting	violation of applicable legislation, risk of litigation .	company's strategic decisions,
	employees' rights		continuous feedback mechanisms
			and internal surveys. Recognizing
			and rewarding the employees for
			innovative ideas.
Gender equality	Real Positive	Excluding or favouring candidates/employees on	Improving the company's reputation
and equal pay	Equality and	the trial of gender, age, ethnicity, religion or other	by increasing the motivation and
for work of equal	diversity	personal characteristics would lead to loss of	commitment towards the company of
value		company reputation, violation of applicable laws, risk of litigation.	existing employees.
Training and	Real Positive	Lack of professional development opportunities	Digitalization of processes to reduce
skills	Investments in	could lead to employees' demotivation and reduced	repetitive tasks. Integration of
development	training and	efficiency.	artificial intelligence and automation
	professional		of operational processes. Training
	development		and retraining to help the employees
			adapt to new technologies and digital
			training.
		The impacts analysed are not material and the risks do not present financial materiality .

Sub-theme	Impact (I)	Risk (R)
Health and	Negative	Non-compliance with the occupational safety and
safety	Potential	health (SSM) regulations represents a material
	Safe and healthy	potential risk for both the employees and the
	work environment	company. For employees, this risk manifests through
		an increased likelihood of workplace accidents and
		occupational diseases, which can lead to serious
		injury, disability or even loss of life. For the company,
		the consequences include considerable financial
		losses due to compensation and legal fines, reduced
		productivity due to the absence of injured employees,
		damage to reputation and the morale of remaining
		employees, as well as potential litigation. In addition,
		non-compliance with SSM regulations may lead to
		sanctions from the relevant authorities, negatively
		affecting the company's operations and long-term
		sustainability.
		This risk is financially material

Policies related to Aerostar's own workforce ESRS S1-1

Working conditions

Specializedcompartments withinthecompanyassessthepotentialnegativeimpactsassociatedwith theiroperations, includingGDPR,corruption, reports/complaints/grievances, collectivebargaining and other important social issues identified as material.

All operational policies and procedures of AEROSTAR S.A. apply to the entire compan y. Our personnel policy focuses on medium and long-term commitments for mutual benefit between the personnelandtheorganization, aimingto ensurethenecessarypersonnelin correlationwiththe company'sdevelopmentobjectives,anticipatingpotentialfluctuationsof personnelshortagesor surpluses.

The main lines of action are:

diversity of thinking and experience, our aim being to stimulate the growth of competencies;

recruiting,providingprofessionaltrainingthroughprofessionaldevelopmentplansand maintainingqualifiedpersonnel withthenecessaryskills,specializedknowledgeandnecessary competencies;

fair opportunities by actively removing barriers so that everyone can develop and contribute to the company's success;

mentoringprogramsfor varioustargetgroupsthatgeneratewell-prepared, flexibleteams capable of adapting to a dynamic, changing environment;

promotinga cultureof trustandrespect,usingconstructivediscussionsandtheexchangeof knowledge and information about the business, to strengthen solidarity within the company

Ourcompanyrespectsandupholdstheinternationallyrecognizedhumanrightsandimplements fairrewards(meritocracy) andequalopportunities forallitsemployees, withoutdiscriminationad respecting the diversity of its personnel.

Recruiting and retaining talent ESRS S1-1

We collaborate with technical high schools specialized in trades specific to AEROSTAR S.A., as well as with universities, aviation being a particularly attractive field for young people who aspire to excel. The internship inAEROSTAR S.A. is a learning journey through which each intern is guided to launch his/her careerwiththe helpof our experts. The internshiprogramconnectsthe youngergeneration withAEROSTAR S.A., giving interns the opportunity to delve deeper into the specifics of the aviation industry, gain exposure to our work environment and work alongside our outstanding teams.We are proud when graduates choose to join the AEROSTAR S.A. team, thus helping us to maintain a good mix of generations and promoting a constant exchange of knowledge and skills.

In the school year 2023-2024 we awarded scholarships, in the amount of 434.669 lei to students from 5 dual education institutions in Bacău and Iași.

StudentsfromtheNationalUniversityof ScienceandTechnologyPOLITEHNICBucharest,he Faculty of Aerospace Engineering, benefited fromprivatescholarshipsworth 17.200lei duringtheir internship inAEROSTAR S.A. which took place between June-August 2024.

Equal treatment and opportunities for all S1-1

At AEROSTAR S.A. it is mandatory to ensurequal opportunities and equal treatment regarding the personaldevelopment ofallpersonnel throughrelationshipsbasedonresponsibilit y, loyalty, mutual respect,freedomof expression, collaborationandprofessional support.We valuetheprofessional skills,integrityandethicalvaluesof ouremployees. Ouremployeesconsistentlybenefitfromequal andnon-discriminatory treatmentin accordancewiththeinternational standardsin theindustryin whichwe operate,whilecomplyingwiththenationallegislation.Themotivationalpackagesare adapted to the specific macroeconomic and microeconomic context in Romania, thus ensuring fairness and competitiveness.

At AEROSTAR S.A.,wealwaysshowrespectto all partieswithwhomweinteract.In ourdaily activities, wecomeintocontactwithpeopleofdifferentethnicities, cultures, religions,politicalbeliefs, ages, genders or disabilities.

Discrimination through the use of practices that disadvantage people of a particular gender, ethnicit y, age, disabilit y, in social and professional relationships is forbidden.

The CollectiveLaborAgreement andtheInternalRegulationscontaindetailedrulesregardingdirector indirectnon-discrimination on thegroundsof sex,sexualorientation, geneticcharacteristics, age, nationalit y, race,colour,ethnicity, religion,politicalbelief,socialorigin,disability, familystatusor responsibilit y, trade union affiliation or activit y.

Other policies related to Aerostar's own workforce ESRS S1-1

In our activities, we pay the utmost attention to the security of the information system, with the main objective of ensuring a safe and trustworthy experience.

AEROSTAR S.A., is constantlyconcernedwithensuringa highlevelof securityregardingthe processingof personaldatain accordancewiththeprovisionsof Regulation(EU)2016/679of the

European Parliament and of the Council ofApril 27, 2016 on the protection ofindividuals with regard to theprocessingof personaldataandon thefreemovementof suchdata,andrepealingDirective 95/46/EC.

AEROSTAR S.A. complies with the legislation on child labour and forced labou r. Matters concerning adequate housing are not the subject of the company's activit y.

Processes for engaging with its own employees and employees' representatives about impacts ESRS S1-2

AEROSTAR S.A.strictlycomplieswiththeinternational lawsandtreatiesregulatinghumanrights, bothwithinthecompanyandinrelationswithitspartnersandcollaborators. Thegeneralrightsand obligations o fAEROSTAR S.A. employees are specified in the Collective Labou rAgreement (CCM), a documentresultingfrom socialdialogueand collectivenegotiationsbetweenthe executive management and the representative trade union in the compan y.

Furthermore, thecompanyhasimplementedanInternalRegulation, applicabletoallemployees, which sets out the rules of work organization and discipline, as well as the rights and obligations of both the employerandtheemployees.Eachemployeehasaccessto thecontentof theCollectiveLabour Agreement on the company's intranet page.

Processes to remediate negative impacts and channels for own employees to raise concerns ESRS S1-3

Inadditiontocomplyingwiththelegislationin force,theregulationsof theCorporateGovernance Codeof theBucharestStockExchange,our activityis guidedby theInternalRegulationsof AEROSTAR S.A.,whichcontaintherightsandobligationsof employeesandemployer,including ruleson non-discrimination andviolationof humandignity, rulesconcerningconflictof interest, disciplinary procedure or the settlement of employees' requests or complaints.

Furthermore, a Code of Conduct and Ethics has been adopted at the company level, a document that defines the values, principles and rules that the contractual personnel AEROSTAR S.A. must observe and appl y.

All employeesare encouragedto reportany suspicionconcerningthe existenceof any noncompliances, ethicalor conductviolationsto theemailaddressesizari@aerosta r.ro.Nevertheless, beyondtheexistenceof a formalorganizational framework, reportingmisconductis anindividual responsibilit y.

Takingactiononmaterial impactsandapproaches tomitigatingmaterial risksandpursuingmaterial opportunities related to our own workforce, as well as the effectiveness of these actions and approaches ESRS S1-4

Maintaining a safe working environment is a daily priority for our company. We constantly focus on identifyingandimprovingtheprocessesrelatedto themanagement of safetyandsecurityin the workplace. At the same time, we actively promote training, awareness and engagement programs for our employees.

In2024,theactivityin thefieldof occupational safetyandhealthwascarriedoutin a plannedand organized manner, aiming at identifying and preventing or eliminating, as the case may be, the risks of occurrenceof events,occupationalccidents,dangerousincidentsandoccupational diseasesat the workplace, as well as complying with the legislative provisions in the field of occupational safety and

health,by carryingoutthemeasuresincludedin theTrainingandTestingProgramin thefieldof Occupational Safety and Health for 2024 no. 10187/19.12.2023 and fulfilling the duties established by the company's Rules of Organization and Functioning.

The human resources policy is aligned with the values of the institution, as well as with the provisions of theUniversalDeclarationof HumanRightsof theUnitedNationsandtheconventionsof the International Labor Organization. Within AEROSTAR S.A. all forms of forced labour , exploitation of minors, physical or psychological abuse or harassment are forbidden.

Equal opportunities and equal treatment among our employees are fundamental pillars of the way we conduct our daily activities, therefore discrimination based on gender , religion, nationalit y, age, sexual orientation, disability or political affiliation is also firmly prohibited within the compan y. The companyalso conductstransparentand equalopportunitiesrecruitmentprocessesfor all participants, regardless of gender , nationality or age. W offer equal opportunities and equal treatment for both our current employees and those who want to join us. The concepts of equal opportunities and equal treatment are at the same time applied to personnel promotion processes in both executive and production departments.

We support and encourage diversity among our employees in both executive and production positions. Duringthereportingperiod,outof the1.883employees,553werewomenand1.330men,the proportionbeingmainlyjustifiedby thenatureof thecompany'sbusiness,whichis predominantly technical.DebateswithinAEROSTAR S.A. areheldthroughrationalarguments, andtheuseof offensive language, personal attacks and insulting behaviour is prohibited.

Targets related to managing material negative impacts, promoting positive impacts as well as managing material risks and opportunities ESRS S1-5

Specific targets related to our own employees were adopted as part of an internal process, based on the materialityof theoccupational healthandsafetyprocess,includingthefollowing:ensuringthe protection of personnel during the activities carried out a tAEROSTAR S.A., compliance with the legal requirements, maintaining the health of the personnel and compliance with the training program.

Characteristics of the company's own workforce ESRS S1-6; ESRS S1-7

TheAEROSTAR S.A. teamis mainlymadeupof professionalswithexperience, skillsandsolid technical knowledge, and in addition to continuous development, it is also necessary to encourage the transferofknowledge fromthesekeyemployeestothenewemployeesinordertoensurethelong-term success of the compan y.

Number of employees

AEROSTAR S.A. aims to ensure ahomogenous team, with a balanced structure both in terms of age groups and gender categories, however, taking into account the operational nature of the activity, the number of male employees represents 71% of the total.

Number of employees by gender

	2023	2024
Gender	Number of employees (number of persons) Number of employees (number of	persons)
Male	1.307	1.330
Female	539	553
Other	0	0
Undeclared	0	0
Total Employees	1.846	1.883

The tables for employees based on type of agreement, broken down by gender, can be found in Appendix 2.

Out of the total of 1.883 individual labour agreements active in 2024, 2 agreements are part-time and 1.881 are full-time. Full-time is considered 40 hours/week and part-time is considered 4 hours/day/20 hours/week and/or 6 hours/day/30 hours/week.

Thevoluntaryterminationratein 2024was10.73%,lowerthanin 2023(12.73%).Thesiteof the business activity o fAEROSTAR S.A.is considered to be the locations wher eAEROSTAR S.A. carries out its activities. The head office is located in Bacău and we also have a secondary workplace in Iași.

The tables for employees based on location and type of agreement, broken down by gender, can be found in Appendix 3.

Collective bargaining coverage and social dialogue ESRS S1-8

AtAEROSTAR S.A., the employees can join the trade union organization - AVIAS. The unionization rate is 57%. The "Avias" trade union is the representative trade union at the unit level, in accordance with the provisions of Law no. 367/2022 on Social Dialogue, which is why it represents the company's employees during the negotiation and implementation of the Collective Labour Agreement concluded at AEROSTAR S.A. The relationsbetweentheemployerandtheemployeesareregulatedby the CollectiveLabourAgreementconcludedat companylevel,as well as by theindividuallabour agreements.

The Collective Labor Contract regulates both the individual and the collective labour relations as well as the rights and obligations of the parties

signing, executing, amending, suspending and terminating the individual labour agreements; working conditions, health and safety at work;

professional training;
working time and rest time;
salaries;
employment rights and obligations, work discipline;
social protection of employees;

other rights and obligations arising from the employment relationships; mutual recognition, rights and obligations of the employer and trade union organizations.

Annually, the trade union organization is consulted regarding the collective indexation of employees' salaries.

	2023	2024
Number of employees covered by collective labour agreements	1.846	1.883
Number of employees who are union members	58%	57%

The relations between the employer and the employees are in accordance with the legal provisions in force, and in 2024 no conflictual elements have been identified regarding these relations.

Diversity metrics

ESRS S1-9

The diversity metrics applied within th eAEROSTAR S.A. structures, as part of our top management's commitment toincrease the level of diversity at the company level, measure the proportion of young people under 30 years of age employed and retained within the company, the proportion of male and female employees and the number of employees with disabilities.

Thetablesforemployeeswithdistributionby genderin termsof numberandaspercentageat the management level,andfor thepersonnelstructureby agecategoriesandgendercanbefoundin Appendix 3.

Adequate salaries

ESRS S1-10

TheremunerationofAEROSTAR S.A.personnel isregulateduniformlythroughtheCollectiveLabour Agreement(CCM).The CCM includesa hierarchyof positionsandjobs withinthecompany, establishingsalarylimitsforeachhierarchical level,dependingonthecomplexityof thework,the degreeof technicalityandprofessional competencyrequiredfor thepositionsin thecompany's organizational chart.

When negotiating salaries, the requirements specified in the Job Description (attached as an appendix to theIndividualLaborAgreement)aretakenintoaccount,aswellasa comparativeevaluationwiththe average income levels for similar activities.

At AEROSTAR S.A.therearenoemployeesarningbelowthereferencelveloftheadequate remuneration applicable at national level .

The Individual Labou rAgreement implemented through the CCM contains provisions consistent with theapplicablenationallegislationinthefieldandcomplieswiththeclausestipulatedby Orderno. 2171/2022, regarding the approval of the Framework Model of the Individual Labour Agreement.

Social protection ESRS S1-11

Social protection of employees is essential to ensure their well-being and to maintain a stable and safe workingenvironment .This includescomprehensive occupational healthndsafetymeasures, ensuring adequateworkingconditions.The companyis committedto complywithall legalregulations concerning social protection.

It alsopromotestrainingandawarenessprogramsfor thepreventionof occupational hazardsand encourages a constant dialogue between employees and management to identify and solve social and labour issues. This creates aclimate of safety and trust, which is essential for the smooth running of activities in such a critical and specialized secto r.

According to the Collective Labour Agreement (CCM), all AEROSTAR S.A. employees benefit from social protection at work.

All our employees are entitled, where applicable, to maternity/paternity/parental leave in accordance with the legislation in force and the provisions of the Collective Labou rAgreement. In 2024, 52 of our employees benefited from parental leave (43 women and 9 men).

AEROSTAR S.A.is a responsibleemployerandoffersitsemployees, inadditiontothenegotiated regular salaries and bonuses, a number of benefits provided for in the Collective Labour Agreement.

Persons with disabilities ESRS S1-12

We support the inclusion of the persons with disabilities, although the specific nature of the company's workplaces imposes specific health requirements for most of our employees, confirmed according to the applicable legal requirements. The total percentage of employees with disabilities is 0.33%.

Training and skills development metrics ESRS S1-13

We promotea learningorganizational culturein whichouremployeescontinuouslyenhancetheir knowledge, skillsandperformanceto achievethecompany's businessgoals.In 2024,throughthe OfficeofHumanResourceDevelopment, trainingandprofessional development courseswereinitiated and conducted for 1.554 participants.

	2023	2024
Total number of training hours	54.230		45.066

			2024
	FEMALE	MALE	TOTAL
Total number of employees	553	1330	1.883
% employees who participated in the periodic evaluation 21%		51%	72%
% employees who participated in professional training21%		61%	83%

Specialattentionis paidto thetrainingandretainingof EASA-licensedaeronautical technical personnel to perform and certify maintenance work on aircraft and their components. Inthefieldof continuoustraininganddevelopment, thethemesof theprogramscovertheareasof interestfor the company'sactivity, specificall y, engineering, aviation,economics,legal,human resources,informationtechnologyandcommunications andthefieldsof quality- environment, occupationalhealthand safety, security, safety, internalaudit,internalcontroland financial management, as well as other themes of general interest necessary for running our business.

Performance assessment

We have an annual assessment process to support our employees and managers through structured and systematicperformanceplanning. Themainobjectiveof thisprocessis tomeasureandimprovethe employees' performanceonthejobin trialtoincreasetheirpotentialandvaluetothecompanyby enhancingthepositiveperformanceindicatorsandestablishingthestepsrequiredto achievebetter results for the next evaluation interval. The assessment of the employee job performance is conducted in accordance with the internal procedure PA-A1.41 - Career Management. The assessment process is an opportunityto provideemployeeswithconstructivefeedbackon theirperformance, boththeir strengths and weaknesses.

Integrating new employees

During the integration period, new employees receive information abouthe tasks and responsibilities of thepositiontheyhold,abouttheworkingenvironment, team,managers,departmentstheywill collaboratewith,aswellastheworkprocedures. Inordertofacilitateasmootherandmorecomfortable integrationof thenewemployees,thetrainingthemesareregulatedin Appendix1 - Framework programfornewemployees'professionaldaptationandintegrationto theprocedurePA-A1.49- Professional training at AEROSTAR S.A.

Health and safety metrics ESRS S1-14

In order to ensure aunitary approach and to streamline the workers' training process at AEROSTAR S.A., a Training/ Testing Program in the field of corporate occupational health and safety accompanied by training themes for all phases of training in OHS (general introductory training - upon employment, onthe-jobtraining,periodictrainingand additionalperiodictraining)havebeendevelopedand distributed toall company departments. Training of personnel was ensured at all levels for all newly hired employees.

100% of the company's own workforce is covered by the health and safety management system

In accordancewiththeprovisionsof Law no. 319/2006on safetyandhealthat work,hazard identification actions are carried out at all workplaces withinAEROSTAR S.A. and risks are assessed for each component of the work system, namely, the worker, the work task, the means of work/work equipment and the work environment. These assessments are available to all workers and are included in the annual OHS training syllabus.

Summary of work accidents occurred in the workplaces of the AEROS TAR S.A. facilities during the reporting period:

In 2024, withi nAEROSTAR S.A. were identified, analysed and solved 8 work-related events that had an impact on the activity carried out and onthe employees, 1of them beingclassified as work accident.

At thecompanylevelaredevelopedandimplementedproceduresforanalysingandsolvingworkrelatedevents,whichprovideforstagesof investigationof theevents,disseminationof thereports preparedfollowingtheoccurrenceof theeventto all organizational structures, analysisandreassessment oftherisksof occupationalccidentsandillness,settinga deadlinefor reviewingthe medical checks for the employees involved in work-related events and/or undergoing training sessions upon the resumption of work.

	2023
No. of accidents outside work	0
No. of minor accidents	0
No. of fatal work accidents	0
No. of employees with occupational diseases and hazardous incidents 0
Number of accidents per 100.000 hours worked	0,00197	0,00008
Time lost due to work accidents per 100.000 work hours	0,06100	0,00018

DuringthereportingperiodAEROSTAR S.A. didnotrecordanyworkaccidentsresultingindisability, and the number of accidents leading to temporary incapacity for work remains low. Also, in 2024 no occupational diseases were reported/ investigated/ declared.

Number of employees trained in Occupational Safety and Health

All employeesundergomandatoryOHStraining,uponhiring,on-the-job,periodicandadditional when necessar y. Specialized personnel with specific responsibilities in the field of OHS are trained by participating in training programs dedicated to their responsibilities within the internal Occupational Safety services organized at company level.

With regard to the measures adopted to prevent the occurrence of work-related events, we specify that these measures aimed at least at the following: revising/updating theprotection and prevention plans drawn up for 2024, supplementing the training programs in the field of occupational health and safet y, processingtheprovisionsof theinternalregulatoryframeworkissuedin thefieldof occupational healthandsafetyat thelevelof all employees,intensifyingcontrolsand/orassigningadditional responsibilities for carrying out periodic checks.

AEROSTAR S.A. has not registered any disputes as a result of the labour events identified in 2024 and it was not necessary to pay any damages as a result of their occurrence.

Work-life balance indicators ESRS S1-15

An essential condition fo rAEROSTAR S.A. to maintain its status as a top employer, in addition to the salary component, is the existence of an extensive benefits package set in accordance with the annual budgets.The benefitspackageis an importantfactorcontributingto employeesatisfaction, commitment and loyalty to the institution.

Inthecaseofexceptional familyevents,employeesareentitledtopaiddaysoff,whicharenotincluded in the annual leave. Exceptional family events and the number of paid days off are determined by la w, by the applicable collective labour agreement or by internal regulation, according to the Labour Code.

			2023
	FEMALE	MALE	TOTAL
Percentage of employees entitled to additional leave	100%	100%	100%
% of employees who took maternity, paternity or parental leave 2%		1%	3%
% of employees who took additional leave	9%	22%	31%

			2024
	FEMALE	MALE	TOTAL
Percentage of employees entitled to additional leave	100%	100%	100%
% of employees who took maternity, paternity or parental leave2%		1%	3%
% of employees who took additional leave	10%	24%	34%

Remuneration metrics (pay gap and total remuneration) ESRS S1-16

Theremunerationf AEROSTAR S.A.personnelis regulatedina unitarymannerbytheCollective LabourAgreement(CCM),whichincludesa hierarchizationf thepositionsandjobswithinthe company. It specifies salary limits for each hierarchical level, established according to the complexity of thework,thedegreeof technicalityandprofessional competencyspecificto thepositionsin the organizational chart.

Whennegotiatingthesalary, therequirements specifiedinthejobdescription, attachedtotheCCM,are takenintoaccount,resultinginasalarywhosevaluewillbeestablishedinaccordancewiththelimitsof the salary scale set out in the CCM.

	2023	2024
Pay gap between trial and men	9,66 %	8,54 %
Pay gap between women and men at management level	11,07 %	9,01 %
Pay gap between trial and men at the execution level	8,46 %	7,45 %
Ratio of total annual remuneration	5,68	5,58

Gender pay gap, defined as the difference in average pay levels between female and male employees:

* Difference in remunera tion between women and men=(Average gross hourly salary of male employees - Average gross hourly salary level of female employees)/Average gross hourly salary of male employees*100 **Ratio of total annual remuneration = Total annual remunera tion ( salary & management allowance) of the highest paid employee /Average total annual remunera tion of employees (excluding the highest paid employee)

Incidents, complaints, issues and severe incidents related to human rights ESRS S1-17

AEROSTAR S.A. promotes equalit y, regardless of grounds, such as race, gender , sexual identit y, age, colour, ethnic or social origin, family status, etc.

Equal opportunities and equal treatment among our employees are fundamental pillars of the way we conduct our daily activities, therefore discrimination is firmly prohibited within AEROSTAR S.A.

In thefinancialyear2024,no incidentsof discriminationor harassmentamongthecompany's employees and no employee complaints related to occupational health and safety were recorded.

Likewise, no incidents and/or complaints related to labour or serious human rights impacts (e.g. forced labour, human trafficking or child labour) were recorded within the company's own workforce.

The company did not receive any significant fines, sanctions or compensation related to human rights or the company's own workforce in 2024.

The company recorded zero cases of non-compliance with the UNUNO on Business and Human Rights, the OIM Declaration on Fundamental Principles and Rights at Work or the OCDE Guidelines for Multinational Enterprises during the reporting period.

	2023	2024
Number of incidents of human rights violations	0
Number of employee complaints regarding human rights	0
Number of employee complaints regarding occupational health and safety(OHS) 0

6.2. WORKERS IN THE VALUE CHAIN Interests and views of stakeholders SBM-2

AEROSTAR throughitspoliciesensuresthatit alignswithinternationallyrecognizedinstruments relevant to the workers in the value chain.

In addition to the company's own workforce ,AEROSTAR S.A. may have value chain workers present, as part of the company's stakeholder representatives; among them, the following are significant:

Workers of service providers;

Workers of equipment suppliers providing commissioning and periodic maintenance services of equipment;

Workers representing the customer;

Workers of control bodies or authorities (ITM, ANAF, VAMA)

Giventhecompany'sbusinessmodel,therearevaryingdegreesof dependenceonthevaluechain workers,whichmayaffectthecompany'sobjectivesin termsof ensuringthelogisticalconditions necessary to deliver our products and services on time and within the required quality standards. The level of interest of the workers in the value chain is described in the chapter "Strategy" - Stakeholders.

Materialmpacts, risksandopportunities andtheirinteraction withbusinesstrategyandbusinessmodel SBM-3

Sub-theme	Impact (I)	Risk (R)	Opportunity(O)
Health and	Negative potential	Non-compliance with labour legislation
safety	resulting in damage to the company's The company's activity can
	reputation be negatively impacted if
	suppliers' employees' health
	and safety rights are not
	respected, damaging the
	company's reputation.
Real Positive Equal treatment Non-compliance with standards of Improving the company's Code of
and	The safety of service	conduct and ethics which would result in	Conduct and Ethics and encouraging
providing workers on the opportunities for the loss of the company's reputation suppliers to adopt the same
all	company's premises and		principles in their activities through
	encouraging suppliers to		the Supplier Code of Conduct
	adopt the same principles in
	their activities through the
	Supplier Code of Conduct
		The impacts analysed are not material and the risks are not financially material .

Through its policies AEROSTAR ensures that:

It complieswiththeinternational regulationsonthelimitationof illegalexploitationof rare minerals under inhumane conditions. AEROSTAR ensures through the adopted policy that its suppliers are aware of and comply with these regulations. In theGeneralPurchasingConditions,ourcompanyhasalsodefinedrequirements forits suppliers regarding both ethics and the observance of the labour legislation. Moreover, through contractual requirements, we requireoursuppliersto complywiththelabourlegislation applicable in their country.AEROSTAR works withsuppliers from countries that are members of theInternational LaborOrganization(ILO),a UnitedNationsOrganization, whichsets international labourstandards, developspoliciesin thefieldandpromotesdecentworking conditions for all workers.

In2024,nosocialcriteriawereusedforselectingsuppliersandnonegativesocialimpactswerecreated in its supply chain.

Inrelationtovaluechainworkers,thefollowingwereanalysedfromtheperspectiveof thedouble materiality matrix:

potential negative impacts on occupational health and safet y. Whengrantedaccesstothe AEROSTAR site,theworkersreceivespecifictrainingin occupational healthandsafety. Thecompanyalsoprovidespersonalprotectiveequipmentor appropriatework clothing for visitors. Through the contractual clauses we ensure that the employers of the value chain workers operating on the site assume their obligations in terms of occupational health and safety for their own personnel.

Therealpositiveimpactforvaluechainworkerswhohaveaccesstocompanypremises wasalsoanalysedunderthesub-theme"equaltreatmentandequalopportunitiesforall". Theybenefitfromsimilartreatmenttothatof thecompany'sownemployeesthroughtherobust policiespromotedby thecompanyin theworkplace.Throughourcontractswiththeservice providers and suppliers working on site, we ensure that they comply with the legal requirements inforce.

The risk of failure to ensure the qualified human resource by service providers and other value chainsuppliersoperatingat thecompany'ssite,aswellastheriskrelatedto security, safetyand increased mobility of the workforce, in fact create opportunities and a positive impact for the workers in the value chain.Thus, through our contracts with companies and organizations in the value chain, on onehand,weensurethatworkersarequalified,andontheotherhand,weprovidethemwiththe motivationtoimprovetheirprofessional training, whileensuringtheirjobstabilityandcomplyingwith the occupational safety and security requirements.

Policies related to value chain workers S2-1

The"SupplierCodeof Conduct"is a keytoolfor ensuringresponsibleandethicalcollaboration between AEROSTAR anditssuppliers.By settingclearexpectationsandstandardsof behaviour,it ensures that all parties involved adhere to the values and principles of the organization.

If the expectations of this code are not met, the business relationship may be revised an dAEROSTAR may propose corrective actions to the contractual terms(s).

Throughpoliciessuchas "GeneralPurchasingTermsandConditions","AEROSTAR Codeof Conduct","SupplierCodeof Conduct",ourcompanyensuresthatit alignswithinternationally recognized instruments relevant to value chain workers.

Suppliersare encouragedtoimplement, inwriting,theirownCodesofConduct andtotransmit themin turn to their main suppliers of goods and services.

TheCodeof ConductforSuppliersaddressesaspectsof promotingandrespectinghumanrights, treating people with respect and dignity, encouraging diversity, promoting equal opportunities for all andfosteringanethics-basedculture.Theymustnotbeinvolvedin anywayin humantrafficking, forced labour or child labour exploitation.

In 2024 there were no significant changes from 2023 in terms of expectations for the suppliers.

In 2024,the"SupplierCodeof Conduct"wasalsoappliedto thesuppliersin Romania,clearly expressingtheexpectationswehaveof oursuppliersin termsof compliancewithourownvalues, principlesandethicalstandards. We encourageouremployeesto reportanycircumstances where, throughthenatureof theiractivities,theymaybecomeawareof situationslikelyto indicatenoncompliance in the suppliers' conduct.

Furthermore, 87% of the suppliers surveyed have assumed andsigned the "Declaration of adherence to the policy of ethics and conduct throughout the entire period of collaboration with AEROSTAR S.A.

Processes for engaging with value chain workers about impacts S2-2

AEROSTAR cooperates and maintains contact with the representatives of the companies to which the value chain workers belong and with which contracts/agreements/protocols or other arrangements are concluded,or for whichthereareprospectsand/orinterestin this respect.Collaborationand communication are initiated by a request for quotation and continued with the tendering, negotiation, contracting and execution of the contract, resolving any ambiguities and non-conformities, and ending withthedeliveryofproductsorprovisionofservices, theirreception, aswellastherelatedpaymentsor collections and, if necessar y, resolving warranty claims.

The operational responsibility for ensuring that this collaboration takes place rests with the CEO of the companywho, as appropriate, delegatesauthorityor grantsmandatesfor collaborationand communication.

Processes to remediate negative impacts and channels for value chain workers to raise concerns S2-3

Our companypromptlyhonoursall ordersandcommercialcontractsby strictlyfulfillingthe obligations arising from them, in particular: timely delivery of products and services to customers, in the required quality conditions; paying suppliers on due dates, at the agreed prices.

Duringthecourseof therelationship, anymeansof directcommunicationbetweenthevaluechain workersandourdesignatedemployeesresponsibleforthebusiness, aswellasbetweentheiremployers andourcompany, is permittedthroughtheformalchannelsof communicationutlinedonpage26. Electronic mail is a common and easy way in which value chain workers are expected to express their concerns or needs.

Anyvaluechainworkercanfileacomplaintifhe/sheisawareofanymisconduct andethicalviolations by an employee or representative of our company, including ifhe/she has perceived or become aware of any formof retaliationwhileworkingat thecompany's siteor elsewherein connectionwith activities arising from the relationship with AEROSTAR.

Employees can file complaints by any means, in writing, at the company's registered office or by mail, fax,e-mail,eitherinpersonorthrougha third-part y, expresslyauthorizedbythepersonmakingthe complaint.

The company will use due diligence to resolve all complaints, including anonymous complaints.

Taking action on material impactson valuechainworkersandapproaches tomitigating material risksand pursuingmaterial opportunities relatedtovaluechainworkers, aswellastheeffectiveness ofthose actions

S2-4

AEROSTAR S.A. has initiated actions to prevent any negative impacts on the value chain workers. In thisregard,a self-assessment questionnaireonsustainabilityhasbeendeveloped. Thequestionnaire was sent to the most important suppliers and feedback was received from approximately 75% of the suppliers. Efforts are being made to get suppliers to respond.

No seriousissuesor incidentsconcerninghumanrightshavebeenreportedin theupstreamand downstream value chain.

6.3. AFFECTED COMMUNITIES

Interests and views of stakeholders SBM-2

We continually work to maintain health y, mutually supportive and collaborative relationships with the communitiesaffectedbyouractivity, relativetowhichthereis significantinterdependence between AEROSTAR's continued supply of jobs to the community on the one hand and the supply of labour in the local communit y, qualified in professions of interest toAEROSTAR, on the other hand. Our main expectation is to prioritize recruiting personnel from the local communit y, while the main expectation of the interested segment in the local community isthatAEROSTAR will maintain attractive and well-paid jobs.

Material impacts, risks and opportunities and their interaction with strategy and business model SBM-3

Stakeholders' requirements, in conjunctionwithcontextualissuesandtheirimpactovershort, medium and long-time horizons, as well as material risks or opportunities, determine the company's prioritiesandunderpinitsDevelopmentStrategy. Thus,in the2024updateof ourStrategy, the following requirements relevant for the local and other communities have been taken into account in the analysis of stakeholder requirements with a "high" priority level:

local priority-utilized workforce;

protected environment;

ethics and respect in business;

stability and retention of jobs,

and with "medium" priority level, sponsorship and civic participation were taken into consideration.

Security-related Cutting jobs through activity Real Positive impacts downsizing Contributing to the well-being of communities through job retention Right to Real Positive Insufficient recruitment and education and Supporting vocational, secondary and retention of graduates from the culture (beyond university education and cultural and sports local community pupils and students the standard) activities through scholarships, providing internships for pupils and students, various sponsorships Freedom of Real Positive expression Participation in various bodies with consultative role, representative at local level (Social Dialogue Commission attached to the Institution of the Prefect of Bacău County, Local Committee for the Development of Social Partnership in Bacău and Iași, Regional Committee for the Development of Social Partnership The analysed impacts are not material and the risks are not financially material.	Sub-theme	Impact (I)	Risk (R)	Opportunity (O)

				Increasing the efficiency of spending company funds on scholarships for
				Opportunity: Establishing and maintaining collaborations with bodies that collect community concerns and provide the company with the framework to express its own values

At thesametime,ourcompanycontributestotherespectoftherightofreedomofexpression, havinga positive impactonthe communitybyhaving representatives in variouslocalconsultative bodies.By establishingandmaintainingcollaborationswithsuchorganizationsthatcapturethecommunity's concerns, the company has the opportunity to express its own values.

Policies related to affected communities S3-1

A significant impact our company has on society and communities is represented by the secure jobs we provide as an economically strong employer and the tax revenues we contribute, which have a decisive effectin improvingthelivingstandardsof thecommunitymembers.However,we haveadopted policies that go beyond that, in that we strive to influence our communities in a positive way through engagement andby returningbenefitsto them.Underthesepolicies,in additionto specifichuman resources policies on recruitment and selection of personnel, we have ongoing concerns for:

engaging in public interest partnerships with the local authorities sponsoring various events or public initiatives;
contributingto the educationaland vocationaltrainingprocess,collaboratingwith the educational establishments andgettinginvolvedin jointprojectsfor thedevelopmentand adaptationofyoungpeople tothecurrentrequirements of theeconomic agents andthe business environment;
collaboratingwithnon-profitorganizations inordertosupportextra-curricular cultural-sport and educational activities;
encouraging and supporting our employees to donate for the benefit of the community and to get involved in the organization of donation campaigns, in humanitarian or charitable cases; supporting the small business and SME communit y.

Processes for engaging with affected communities about impacts S3-2

In the spirit of our desire to influence communities ina positive way by getting involved and giving back to them from our results, we work with the local authorities, industry employers' organizations, associations, foundationsandothernon-profitorganizations, secondary, highschoolanduniversity institutions and cultural and sports institutions.

We maintaina permanentdialoguewiththelocalcommunities, throughourpresencein various consultative, locally representative bodies, including:

Social Dialogue Commission attached to the Institution of the Prefect of Bacău County; LocalCommitteefortheDevelopment ofSocialPartnership(CLDSP)inBacăuandIași,in whichwecurrentlyholdthepresidency, beingco-optedin theRegionalCommitteeforthe Development of Social Partnership (CRDPS).).

We alsosupportthecommunityof smallentrepreneurs by supportingtheactivitiesof theCounty Employers' Association of SMEs (PJIMM) Bacău, where we disseminate our positive experiences, in the pursuit of common interests.

At the same time, we maintain a dialogue with the other communities relevant to the company, such as the businesscommunity in theaviation industry. Thus,our companyis representedin theRomanian Aeronautical Industry Employers Organization (OPIAR).

We collaboratewithnon-profitorganizationsin theinterestof theknowledgeandpromotionof cultural, historical and educational values, of strengthening the professional prestige of the workers in

theaviationindustry, of reinforcingthespiritof belongingtothegroupof elitemanufacturers, in leading fields of the Romanian and worldwide industr y.

Ourcompanyis theinitiatorof a seriesof actionstogetherwiththeBacăuCityHallwitha viewto settingupadualeducationclusterinBacău.Theactionswereaimedatsettingupalegalassociationfor thispurpose,inpartnershipwiththeBacăuCityHall,BacăuCountyCouncil,BacăuCountySchool Inspectorate , "VasileAlecsandri "Universit yof BacăuandtheBacăuCountyEmployers'Associationof SMEs. The North-East Regional Development Agency - a non-profit organization from Piatra Neamț, thetechnicalcolleges"AnghelSaligny"and"N.V. Karpen",as wellas the"DimitrieMangeron" Technological High School from Bacău were also involved along the wa y. Subsequentl y, a consortium was formed in accordance with the provisions of th eApplicant's Guide for the submittal of a project to obtain funding through the National Recovery and Resilience Program, chapter "Educated Romania", for the setting up of an integrated vocational campus, high school and universit y, for dual education in Bacău. In 2024 the project was selected for funding.

Awareofthebenefitsofcultureandsportintheeducational process,aswellasofthepositiveimpactof culturalandsportingeventsin thecommunit y, we sponsorthe"AEROSTAR BacăuCulturaland Educational Association"- a non-profitorganizationwithitsownlegalpersonalit y, aswellas the AEROSTAR SportsAssociation, within which a professional football club and an aeromodelling club operate.The AEROSTAR footballclub,aswellastheaeromodellingclub,areopentoall talented children or young people in the communit y.

The company's expectations regarding the collaboration with the communities are related to our policy of generating long-term recruitment and selection pools adequate forAEROSTAR's future needs, from amonguniversityandcollegegraduatesandfromthehumanresourceavailablein thecommunities within our geographical area.

Processes to remediate negative impacts and channels for affected communities to raise concerns S3-3

In 2024- as in all previousyears,ourcompanyhasnotrecordedanynegativeimpactson the communities. Onthebasisof previouspositiveexperiences, theknow-howacquiredanddeveloped within the compan y, we will continue to improve our methods and tools to closely and systematically monitortheresultsof ouractivities,to identifyrisksearly, to assessimpacts,andto identifyand implement the necessary corrections and improvement measures in a timely manne r.

Our values include strictly prohibiting any retaliation against a person who, in good faith, seeks help or reportsa knownor suspectedwrongdoing. We alsopromotethesevaluesin ourrelationswithour partners.

Any member or representative of a community may file reports, complaints or grievances if they are awareof or believethattheyhavebeenaffectedby a companyaction,includinginactionby the company in a case where it should have acted. The report, complaint, or grievance may be submitted through any means of contact open to the public, in writing, to the company's head office through the company's Registry Office or by mail, fax, e-mail, either in person or through athird party expressly authorizedby theowner. Thecompanywill actdiligentlyto resolvesuchreports,complaintsor grievances, and they will all be received and resolved, including anonymous complaints .All necessary investigationsarecarriedoutwithdiscretionandall casesaresolvedwithrespectfortheconfidentiality

of information, principlesandmeasuresto protectpersonaldata.Throughourhumanresources policies, we have in place the following core principles:

Collectingandprocessingpersonaldataonlywithinthescopeof theresponsibilities, and powers assigned and only in the fulfilment of specific job duties;
Non-disclosure of data to third parties, in an unauthorized manner or outside the scope of their specific job duties;
Informing the persons concerned of the purpose of data gathering and processing and, where appropriate, obtaining their consent.

Taking action on materialmpacts on affected communities and approaches to mitigating material risks and pursuing material opportunities relatedto affected communities, aswellastheeffectiveness of those actions

S3-4

In orderto manageandcapitalizeourofferof secureandbetterpaidjobsto thecommunit y, our companycontinuousl ycarriesoutactionstopublicizeitsactivityandvalues, tostrengthenandpromote its image as a top employer , to identify and implement methods and tools specific to human resources marketing, tocreate solidrecruitment pools inthe localcommunityandintheimmediatevicinity,from where toselectnewemployees.At thesametime,afterhiring,thecompanyconductsintensivetraining activities for both new and existing employees; for the company, these activities represent actions to minimize the risk of not having adequately qualified human resources.

In the same spirit of meeting the expectations of the local communities, our company is authorized to organize qualification courses in four trades specific to the aviation industr y.

Furthermore, in2024,the"Centreforassessment ofprofessional competencies obtainedbynon-formal means" set up within the company was authorized by the National Qualification sAuthority. The above authorizationallowsus to issuecertificatesof professional competencyto anycandidatesin the communit y, who would successfully complete the assessment process.

The actionsplannedandundertakeninrelationtothematerialimpact oncommunitiesgeneratedbythe risk of environmental damage due to the company's activities are outlined in the "Action Plan for the achievement of quality and environmental objectives" for 2024, which includes the following actions: analysisof changesin applicablelegalandregulatoryrequirementsandupdate,where

necessar y, the environmental working instructions;
trainingenvironmental officersregardingthe provisionsof the environmental working instructions;
conducting environmental inspections in areas with significant environmental aspects; carrying out planned environmental audits.

In order to mitigate the risk of insufficient employment and retention among graduates from the local communit y, AEROSTAR has carried out in 2024 a campaign to present the company's activity and its job offer to technical universities across the country thatrain specialists inprofessions ofinterest for our business, in the fields of aeronautics, mechanics, electronics, etc. We are interested in and present our offer to futurespecialistsin complementar y, collateralor relatedfieldssuchas: automation, information technolog y, transportation.

At the same time, we have supported the Technical University of Bacău by participating in debates on the occasionof theauditscarriedout by theRomanianAgencyfor QualityAssurancein Higher Educationfortheaccreditationf somefacultieswithinthisuniversit y. We alsohavecloserelations

and partnerships with 6 technological high schools or technical colleges in Bacău and Iași that allow theirstudentstodointernshipsin ourcompany, andfora significantpartof themwegrantprivate scholarships. At the end of their studies, the students of these high schools and colleges have priority for employment in our company, as we are concerned to capitalize on the opportunity to optimize the expenses with scholarships granted from company funds.

In 2024no issuesandincidentsregardinghumanrightswerereportedin relationto affected communities.

6.4. END USERS Interests and views of stakeholders SBM 2

We have the obligation towards both our customers and end users as well as towards our employees, investors, suppliers, or representatives of the local community to be honest, fair and truthful in all our activities.

We are guided by the responsibility for sustainable development, we are consistent in applying the best practicesin thefieldand,in alignmentwiththepracticesof ourbusinesspartners, wetransparently provide information, explanations and data in these categories of non-financial and financial reporting.

Satisfyingcustomerrequirements, completesafetyfortheusersof ourproductsandservicesarethe principles that guide our activities.

We believethatallpartiesinvolvedintheaerospaceindustryhavea definingroletoplayinfurther enhancingair safety. The aviationindustryis builton compliancewithregulations, as a result AEROSTAR respects, enforces and complies with these regulations, constantly acting at all levels to prevent any form of risk and to deliver safe products and services.

AEROSTAR's activitiesare carriedout basedon commercialcontractswith our customers. AEROSTAR productsequipcivilandmilitaryairplanesandourMROservicesareintendedforthe aircraft of the commercial airlines and for the maintenance of military aircraft of the Romania nArmy.

We considerthatforAEROSTAR, theend-usersin thefieldof aeronautical manufacturingarethe integrator sof ourproductsintothefinalproduct .Inthefieldof civilaircraftMRO, theend-usersarethe airlines,andinthefieldof militaryaircraftMRO,theend-useris theMinistryof NationalDefence, AEROSTAR being the first-tier supplier for it.

The interests, views and rights of the end-users are integrated into the business model through policies relatingto productmanagement, qualityassurance, deliveryof qualityproductsandservices,full safety for users along with continuous performance improvement.

This chaptershouldbe readin conjunctionwith "AEROSTAR Activityand Products"and "AEROSTAR Presence on the Global Market",

Materialmpacts, risksandopportunities andtheirinteraction withbusinesstrategyandbusinessmodel SBM 3-IRO 1

AEROSTAR'sstrategyandbusinessmodel(seepagenr. 21)aredesignedin sucha waythattheir impactsarepositiveor minimizepotentialnegativeimpacts,appropriatelymanagetherisksand opportunities arising from the actions with our customers, end-users or other stakeholders.

Since we believe that the entire value chain and our stakeholders need easily accessible and transparent informationabouttheimpactsof ouroperations, thedoublematerialityanalysishasbeenconducted from both a positive and a negative perspective.

Topic	Description of the impact	Risk
Safety of products and services	Negative Potential	Risk of end-user incident if not all applicable
	End-users' diminished confidence requirements are met.
	in case of incidents.
The risk has financial effects

End-users' diminishedconfidencein thecaseof incidentsis a riskthatcanhavematerialfinancial effects.Ourapproachto mitigatingthisriskincludesproactivemonitoringandqualityassurance measures, as well as transparent communication with the end-users in order to maintain and build their trust.We arecommittedto providinghigh-qualityproductsandservices,meetingall safetyand compliance standards, to minimize risk and maximize our customers' satisfaction.

Policies related to consumers and end users S4-1

Thepoliciesadoptedby AEROSTAR S.A. havethefollowingstrategicobjectives:satisfyingthe requirements of ourcustomersandend-users, complyingwiththelegalandregulatoryrequirements applicable to the activities carried out, enhancing environmental performance, full safety for the users ofAEROSTAR S.A. products and services, as well as continuous improvement of the competitiveness of our products and services.

The actions ofAEROSTAR S.A. are therefore aimed at continuously adapting the management system to respondeffectivelytochangesintheglobalmarket,appropriatelyallocatingresponsibilities and roles in relation to the changes, but also ensuring an inclusive organizational culture for adherence tothe necessary measures.

AEROSTAR S.A. respects and guarantees equal and non-discriminatory treatment in relations with its partners,collaboratorsandcustomers. Thecompany'spersonnelbehavein a professional manner, transparentlyand impartiallyensuresdiversityand equalopportunitiesin relationswith all stakeholders, avoidinganyactionthatcouldbeconstruedasanactof discrimination. AEROSTAR shows respect!

We fully complywith nationaland internationalstandardsand regulations,applicableto environmental, socialandpersonnelaspects,humanrights,anti-corruptionandanti-briber y, andthe promotion of diversit y.

In AEROSTAR businessrelationshipsareprotectedby contractsor confidentialityagreementsto ensure the protection of company data and sensitive information.

Ourmanagementsystemensurestheprivacyofourcustomers 'databyadoptingeffectivestrategiesthat helpuspreventprivacybreachissues.Becauseof ourmanagement systemandourconsistencyin improvingitseffectiveness, therehavebeennocomplaintsfrom ourcustomersorend-usersaboutnoncompliance with the privacy regulations.

The executive management is also concerned with ensuring compliance with all the existinganti-corruptionpoliciesand procedures, includingthe whistleblowermechanismalso stipulated in the Romanian la w. For the reporting of problematic aspects, with the implementation of

OHS policies, potential hazards, unintentional errors and near misses can be r "Voluntary Reporting" procedure. "

In 2024 there were no complaints about breaches of customer confidentiality; from stakeholders; no complaints from regulatory bodies; no loss of customer

Processes for engaging with consumers and end users about impacts S4-2

AEROSAR S.A. is a company that aims to accomplish its business portfolio by the highest standards of business ethics.

We attaclyreafmportande communicatiandtransparensythatourcustomers end-u benefifromdirectommunicationroughmailsphoner fax numbersistedon thecompa websitandothemeaslisteinthe "Stakeholderable. Attresametimembusinesselatione operationalepartmentithinthe companys in directcommunicationiththe correspo departmentswnedby the customers lso, the marketingnd developmente partment communication office acting as a public relations office.

Transparentmmunications of themsconsolidates partnerships is pproachabless expand our market presence and develop long-term relationships. Closelylinkedto thischapters thechapter"Theroleof theadministrationanagement supervisory bodies" (see page 13).

Processes to remediate negative impacts and channels for consumers ട4-3

Recognizintheimportance protecting e well-beingf theendusersof our product preventing potential impacts, we fully follow procedures so as to manufacture customerspecificationAEROSTARS.A. hasactionplanandtarqetto reduceheriskof n conformities and to eliminate the related cost when they occur.

In our sustainabititiishensuring thighestandards φωality, eliabi and safety.

Takingctionmaterial pactance nd - useas dapproache managimat risksandpursuing ateria portunitie latetb consume andend-useras wellas effectiveness of those actions S4-4

The relevant certification bodies audit the production facilities and support fur conducting rveillanærdit EMAR certifications which cover design, production added option of the auth obtained following the audits conducted by our customers.

AEROSAR S.A.directlyheckshecomplianceiththeinternaproceduressdpolicieshrou constant internal audits.

We are certified according to ISO 9001 or EN/AS9100 management standard, international quality standards.

Ourproduct aremade ndourservice areprovide in full compliance it hthere quirements customers duser and with hele galandre guirement sortes ped he health safety of users.

The risk management system consists of a set of rules, methods and organizational structures designed to ensurethe identification, assessment,mitigationand monitoringof criticalrisks relevantto AEROSTAR S.A.

In the collaborations of AEROS TAR .A., no real negative impacts on the end consumers have been identified.

7. BUSINESSCONDUCT

Impacts, risks, opportunities

Thesustainability aspectsanalysedinrelationtotheprofessional conductarethosespecifiedinthethematic standard and in AppendixAR16, as well as some aspects identified outside the standard. The impacts on the professional conduct can directly influence the relationships with our customers, employees, suppliers and business partners, thus affecting our reputation, trust and effectiveness.

Sub-theme	Impact (I)	Risk (R)	Opportunity (O)
Concerns about	Real Positive ;	Reputational risk, restricted
behaviour that is	Promoting the responsibility to	access to finance, fines resulting
illegal or contravenes	comply with the legal provisions	from non-compliance with
the code of conduct	and the code of business	governance standard
or the internal norms requirements conduct or other internal norms
	as core values of the
	organizational culture
Business conduct	Real Positive	Reputational risk, loss of	Improving control over the way the
	Credibility in the business	credibility in the business	provisions of the company's Code of
	environment, based on the	communit y, reduction in the	Conduct and Ethics are respected
	established and respected	number of active investors
	ethical business conduct (the
	company being freely traded on
	the capital market)
Payment practices	Real Positive	Weakening the supply chain
	Fair payment practices, on	through late payment or non
Supply chain and	agreed terms to all suppliers	payment of invoices
impacts on	who fulfil their contractual	Inability to deliver on time
sustainability aspects	obligations.
	The company is concerned with
	minimizing supply chain risks
	and maintaining a strong supply
	chain with high supply capacity
		The impacts analysed are not material and the risks are not financially material.

Policies related to professional conduct and corporate culture G1-1

AEROSTAR upholdsthecompany'sprinciplesandvalueshonestl y, fairlyandwithintegrityand consistently strives to comply with the highest standards of business ethics, having voluntarily adopted theAEROSTAR Code of Business Conduct and Ethics for many years. Thiscodeis postedonthecompany'swebsitewww.aerostar.roandis partof thecollectivelabour agreement .Tothe extent that this code requires a higher standard than that required by trade practice or

applicable laws, rules or regulations, we adhere to those higher standards.

Thiscodeis mandatoryforadministrators, employeesandis adoptedinallmattersthatconcernour employees, aswellasourinvestors, customers, suppliers, representatives ofthelocalcommunit y, other businesspartnersandcontainsgeneral guidelines forconductingthe company's businessinaccordance with the highest standards of business ethics.

The companyhas a simpleandstraightforward policyon therulesof conductandbehaviour thatits employees and agents must follow when conducting company business. They must do what is right, complywithall legalrequirements, behavehonestlyandwithintegrity, treatpeoplefairly, respect diversity, acceptresponsibilit y, communicateopenlyandalwaysmaintainanimpeccablebehaviour. These requirements are generally referred to as 'ethics'. Every employee has an obligation to maintain thesehighethicalstandardsatalltimes,evenifdoingsomayresultinlossofbusinessforthecompany. No employeeshouldeverbelievethata compromisingor unethicalsituation(notcomplyingwith businessethics)canbejustifiedby achievinga businessresult. Anyonewhoviolatestheserulesof conduct and behaviour may be subject to disciplinary sanctions, including disciplinary termination of the CIM and/or penal or civil penalties.

The Board of Directors pays special attention to the compliance with corporate governance principles in order to ensure:

the achievement of sustainable performance of the development;

the accuracy and transparency of the company's decision-making process; respect for the rights and equitable treatment of the shareholders by protecting and exercising their prerogatives;

transparency andaccesstoinformationthroughregularpublicationof relevantfinancialand operational information.

Management of relationships with suppliers G1-2

Throughitspolicies,thecompanyensuresthatit alignswithinternationallyrecognizedinstruments relevantto thevaluechainworkersregardingbusinessandhumanrights.Throughitscontractual requirements, AEROSTAR requiresitssupplierstocomplywiththelabourlegislationapplicablein their country of origin.

The Supplier Code of Conduct represents the expectations we have of our suppliers to ensure a healthy businessrelationshipin accordancewith our values,principlesand ethicalstandards.If the expectations of this code are not met, the business relationship may be revised and AEROSTAR S.A. may propose corrective actions to the terms of the contract(s).

AEROSTAR S.A. has also defined in its General Conditions of Purchase its requirements for suppliers on ethics and compliance with labour legislation.

Notes: This chapter is dealt with in conjunction with the Stakeholders and S2- Value Chain Workers

Prevention and detection of corruption and bribery Incidents of corruption or bribery G1-3

As mentionedabove,theCompany'sCodeof BusinessConductandEthicsalsoclarifiesthe Company's position on the detection of corruption and briber y.

Thus,eachemployeeisundertheobligationtocomplywithalllaws, rulesandregulationsapplicabl eto theCompany'soperations.Trialinclude,withoutlimitation,lawsrelatingto briberyandillegal commissions, copyrights, trademarks and trade secrets, confidentiality of information, illegal political contributions, antitrustinterdictions, anti-corruptionpractices, thegivingor acceptingof gratuities, environmental risks, workplace discriminationr harassment, occupational health and safety, false or misleading(erroneous)financialinformationor misuseof corporateassets.Eachemployeemust understand and comply with all laws, rules and regulations applicable to the position he/she holds.

If an employee discovers a questionable, fraudulent or illegal event that is or may be a violation of our policiesandcouldharmus,heorsheisobligatedtoreportitimmediatelytomanagement whowilltake all necessary steps to verify the veracity of the event.

In ourcompany, theemployeesandcitizensof ourcommunitycanaddressrequests,complaints, notifications andproposals tothemanagement throughearings. Thehearingsare heldby theChief Executive Officer and, in his absence, by his substitute.

Depending on the issues notified, measures and deadlines for their settlement shall beaid down. The final resolution of the issue will be communicated in writing, by e-mail, fax or phone by the designated person after the issue has been definitively resolved during a hearing.

In 2024,therewerenoreportedconcernsor requestsforcounsellingregardingunethicalor illegal behaviourandorganizational integrityin ourcompany, no incidentsof corruption, no employees dismissedorsanctionedforactsofcorruption, andnoincidentsofcorruptionleadingtothetermination or refusal to renew contracts with our business partners.

The company is committed tocomplying with the applicable national and international legislation on the prevention of corruption and bribery and has not been involved in any incidents of this nature, nor have any legal actions been filed in relation to these matters, during 2024. At thesametime,weensurecompliancewiththesamestandardwithregardto thepreventionof corruptionandbriberybyestablishingcontractual obligationswithourpartners, suppliersorcustomers to comply with these provisions and to report incidents of this nature immediatel y.

Political influence and lobbying activities G1-5

In 2024, we did not make any political donations or implement any lobbying activities. AEROS TAR S.A. has no concerns regarding political influence or political affiliations of any kind. Moreover,noneof themembersof theBoardof Directorsor membersof themanagement and supervisorybodieshavehelda comparablepositionin publicadministration(includingregulatory authorities) during 2024.

Payment practices G1-6

Ourcompanyhasfairpaymentpractices, andin2024nolatepaymentswerereportedandnolegal actions were taken regarding AEROSTAR S.A.'s non-compliance with the payment terms. The Company is concerned with the matters related to combating money laundering and the financing of terrorism, having implemented internal procedures inthis regard, which describe the organizational measures, the manner of identifying and reporting suspicious transactions awell as keeping records related to these transactions.

8. ADDITIONAL TOPICS

In these additional topics no risks of material real impact are identified.

Internalcontroltools,existingsecurityproceduresandsystems,ystematicmonitoringandenforcement of AEROSTAR S.A. policies are taken into account in order to ensure cyber security measures and compliance with customs control regulations.

To avoid risks related to information system securit y, a plan with measures for the implementation of ISO 27001 standard is in place and regular "Security Awareness" courses are envisaged.

Sub-theme Additional Topic	Impact (I)	Risk (R)
Compliance with	Negative Potential	Failure to comply with the
export/import control The company's activities may regulations affects the company regulations be negatively affected if by placing it on the list of denied export control regulations are entities (affects military operations not complied with internally and civil and military operations externally)
The impacts analysed are not material and the risks are not financially material .

Information system security

Sub-theme Additional Topic	Impact (I)	Risk (R)
Securityincident- data loss	Negative Potential Interruption of activity for a longer period of time	Reputational risk, delayed deliveries, costs related to incident remediation
GDPR data	Negative Potential Loss of personal data confidentiality	Reputational risk, costs related to incident remediation
The impacts analysed are not material and the risks are not financially material .

9. APPENDICES

Appendix 1 Report in accordance with Article 8 of (EU) Regulation (EU) 2020/852 of the European Parliament and of the Council (" Taxonomy Regulation")

1. INTRODUCTION

In 2023, the European Commission published a delegated act for the EU Taxonomy Regulation, which includes aset of specific criteria for the aviation sector. This initiative recognizes the decarbonization potentialof thelatestgenerationsof commercialaircraft.Thispotentialis manifestedthroughthe replacementof thecurrentfleetandanambitiousincreaseintheuseofSustainabl eFuels(SAF),aswell as "zero direct tailpipe CO2 emissions" technologies".

Technical Screening Criteria

TheTechnicalScreeningCriteria(TSCs)havebeenprogressivelydevelopedin linewiththesix environmental objectives set by the Climate Delegated Act (applicable from January 1, 2022) and the complementary Climate Delegated Act (applicable from January 1, 2023). TheEuropeanCommissionhasadopteda delegatedacttargetingeconomicactivitiesthatcontribute significantly to other environmental objectives and has amended the Climate Delegate dAct by adding additional economic activities and criteria, including in the aviation secto r.

Disclosing the regulations

TheEuropeanUnionTaxonomyisdesignedtoestablishalistofeconomicactivitiesthatareconsidered environmentallysustainable. This taxonomyis definedin accordancewiththe(EU) Regulation 2020/852 of the European Parliament and of the Council, known as the 'Taxonomy Regulation'. The information disclosed must be in line with Article 8 of this Regulation, which requires companies to disclose how their activities contribute to the environmental objectives set by the EU. In addition, the EuropeanCommissionDelegatedRegulation(EU)2021/2139specifiesthetechnical screening criteria fordeterminingwhetheraneconomicactivitycontributessubstantiallytoclimatechangemitigation andadaptation. The(EU)DelegatedRegulation2023/2486extendsandupdatesthesecriteriato includeneweconomicactivitiesandtoensurecompliancewiththelatestEUenvironmental objectives.

The Taxonomy focuses on six major environmental objectives, each with specific sets of criteria that mustbemetforaneconomicactivitytobeclassifiedasenvironmentally sustainable. To bealigned withthe Taxonomy, aneligibleactivitymustcomplywiththecriteriaof Substantial Contributionto Multiple Objectives, the DNSH criteria and the minimum safeguards.

2. ASSESSING THE ACTIVITIES AND THE COMPLIANCE WITH THE TAXONOMY

AEROSTAR has madea detailedanalysisof the exposureto taxonomy-eligibleactivitiesin accordancewiththeapplicabledelegatedacts.In addition,it hasassessedthecompliancewiththe relevant Technical Screening Criteria (TSC), including the DNSH (Do No Significant Harm) criteria

andtheminimumsafeguardsrequired.Thereviewof theeconomicactivitieswascarriedoutin consultation between the financial and technical departments, and the assessment process included an overall analysis of our contribution to the climate change mitigation objective.

Eligible economic activities

Thecompany'sactivitiesidentifiedaseligiblefor taxonomyarethosedescribedin theTechnical Screening Criteria, as per paragraph 3.21, relating to aircraft manufacturing - described as "manufacture, repair,maintenance, overhaul,overhaul,reconditioning, design,conversionand modernizationf aircraftandaircraftpartsandequipment", inaccordancewithNACEcodesC30.3 and C33.1.6.

According to the technical screening criteria for "Aircraft Manufacturing", thesubstantial contribution to climate change mitigation can be assessed in two ways: a) for aircraft with "zero directailpipe CO2 emissions" or b) for aircraft meeting the performanceriteria for CO2 emissions set out in the ICAO standards. Given that the ICAO standard only applies to commercialircraft and that alignment with thisstandardwill be reportedfrom2025onwards,whichmeansthataircraftmanufacturers and operatorsneedto ensurethattheirfleetscomplywiththeserequirements in orderto contributeto climatechangemitigation,theassessmentof alignmentagainsthesecriteriais onlyrelevantfor commercial aircraft products.

Thecompany'sEU taxonomyreportingcoversthefollowingscope:theEU taxonomy'sshareof turnover,capitalexpenditure("CapEx")andoperatingexpenditure("OpEx")andtotalassets.We valued and allocated turnover , CapEx, OpEx and total assets through a process of correlation between theactivitiesspecifiedin theEU Taxonomyandourinternalportfolioof revenues,investmentsand expenses. InthecontextofEUTaxonomyreporting, thecompanymayomiteconomicactivitiesthatdo not exceed 1% of total turnover , CapEx, OpEx or total assets, as they are deemed not to have a material impact on the reporting purpose.

As a manufacturer of partsandsubassemblies for theaviationindustry, as wellas a providerof maintenance and repair services, the majority of the company's revenue, CapEx, OpEx and total assets arerelatedtotheAircraftManufacturing business.Asthe"AircraftManufacturing" activitycontributes to climatechangemitigation,it canalsocontributeto therestof theenvironmental objectives.The companyhasassessedthiscontributionto anyotherobjectiveasbeinginsignificantfor reporting purposes and is therefore reporting the contribution to climate change mitigation onl y.

In linewiththerequirements setfor Activity3.21 AircraftManufacturingregardingthesubstantial contribution toclimate change mitigation, the company has identified the following relevant aspects that prevent the compliance with the technical selection criteria:

Compliance with CO₂ emission requirements: At the time of reporting, the company is unable to determine the proportion of aircraft meeting the CO₂ emission metric specified in the ICAO standardasspecifiedin point(b)of thetechnicalselectioncriteria.Theabsenceof official certificationof CO₂ metricvaluesor a declarationof compliancewiththerequirements prevents a full assessment of eligibilit y.

Calculation of aircraft replacement rate :To date there is no officially published indicator on the replacement ratio and the company does not have a database with the necessary information to calculate this indicator as required by the EU Taxonomy.

Despite theseconstraints,he companyreaffirms itscommitment tosustainabilityandcompliancewith theapplicableregulations. Thecompanywillcontinueto monitorthelegislativedevelopmentsand assessits businessactivitiesin orderto alignwiththerequirementsof theEU Taxonomy.The Company expects the reporting to evolve as additional information required for the analysis becomes available as described above. Future guidance on the EU Taxonomy may result in updated definitions and further decisions on the reporting obligations.

Turnover
Financial year		Year 2024			Criteria for substan tial contribu tion							Does Not Signi ficantly Harm (DNSH) criteria
Economic activiti es (1) Code(a)	(2)	Turnover	Proportion of turnover (4)	Clim ate ch ang (5) e m tiga i tion	Ada ptati cha on nge to c (6 lim ) ate	Wa ter (7)	Pol lutio n (8 )	Circ ula r ec ono my (9 )	Bio div ers ity (10 )	Clim ate ch (11 ang ) e m tiga i tion	Ada ptati cha on nge to c (1 lim 2) ate	Wa ter (13 )
Text		RON	%	D; N; N/EL (b)(c)	D; N; N/EL (b)(c)	D; N; N/EL (b)(c)	D; N; N/EL (b)(c)	D; N; N/EL (b)(c)	D; N; N/EL (b)(c)	D/N	D/N	D/N
A. TAXONOMY ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable ac tivities (taxonomy-aligned)
Turnover of environmentally sustainable ac tivities (taxonomy- aligned) (A.1)		0	0%	0%
Of which facilita tng		0	0%	0%
Of which transi tional		0	0%	0%
A.2 Activities eligible in terms of taxonomy but which are not environmentally sustainable (not taxonomy-aligned ac							tivities) (g)
Aircraft manufacturing CCM 3.21 584,004,013 100%				N	N	N	N	N	N	D	D	D
				EL; N/EL (f)	EL; N/EL (f)	EL; N/EL (f)	EL; N/EL (f)	EL; N/EL (f)	EL; N/EL (f)
Turnover of taxonomy-eligible but environmentally non-sustainable activities (not taxonomy-aligned activities) (A.2)		584,004,013 100%		0%	0%	0%	0%	0%	0%
A. Turnover of taxonomy eligible activities (A.1+A.2)		584,004,013 100%		100%	0%	0%	0%	0%	0%
B. ACTIVITIES THAT ARE TAXONOMY-NON-ELIGIBLE
Turnover of ac tivities that are taxonomy-non-eligible		0	0%
TOTAL (A+B)		584,004,013 100%

Faci l itation Trans ition activity activity category category (19) (20)

CapEx
Financial year		Year 2024			Criteria for substan tial contribu tion							Does Not Signi ficantly Harm (DNSH) criteria
Economic activiti es (1) Code(a)	(2)	CapEx	Proportion of CapEx (4)	Clim ate ch ang (5) e m tiga i tion	Ada ptati cha on nge to c (6 lim ) ate	Wa ter (7)	Pol lutio n (8 )	Circ ula r ec ono my (9 )	Bio div ers ity (10 )	Clim ate ch (11 ang ) e m tiga i tion	Ada ptati cha on nge to c (1 lim 2) ate	Wa ter (13 )
Text		RON	%	D; N; N/EL (b)(c)	D; N; N/EL (b)(c)	D; N; N/EL (b)(c)	D; N; N/EL (b)(c)	D; N; N/EL (b)(c)	D; N; N/EL (b)(c)	D/N	D/N	D/N
A. TAXONOMY ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable ac tivities (taxonomy-aligned)
CapEx related to environmentally sustainable ac tivities (taxonomy- aligned) (A.1)		0	0%	0%
Of which facilita t ng		0	0%	0%
Of which transi tional		0	0%	0%
A.2 Activities eligible in terms of taxonomy but which are not environmentally sustainable (not taxonomy-aligned ac							tivities) (g)
Aircraft manufacturing CCM 3.21		26,625,246	100%	N	N	N	N	N	N	D	D	D
				EL; N/EL (f)	EL; N/EL (f)	EL; N/EL (f)	EL; N/EL (f)	EL; N/EL (f)	EL; N/EL (f)
CapEx related to taxonomy-eligible but environmentally non-sustainable activities (not taxonomy-aligned activities) (A.2)		26,625,246	100%	0%	0%	0%	0%	0%	0%
A. CapEx related to taxonomy eligible ac tivities (A.1+A.2)		26,625,246	100%	100%	0%	0%	0%	0%	0%
B. ACTIVITIES THAT ARE TAXONOMY-NON-ELIGIBLE
CapEx of ac tivities that are taxonomy-non-eligible		0	0%
TOTAL (A+B)		26,625,246	100%

activity activity category

OpEx
Financial year		Year 2024			Criteria for substan tial contribu tion							Does Not Signi ficantly Harm (DNSH) criteria
Economic activities (1) Code(a)	(2)	OpEx	Proportion of OpEx (4)	Clim ate ch (5) ang e m tiga tion i	Ada ptati cha on nge to c (6 lim ) ate	Wa ter (7)	Pol lutio n (8 )	Circ ula r ec ono my (9 )	Bio div ers ity (10 )	Clim ate ch (11 ang ) e m tiga tion i	Ada ptati cha on nge to c (1 lim 2) ate	Wa ter (13 )
Text		RON	%	D; N; N/EL (b)(c)	D; N; N/EL (b)(c)	D; N; N/EL (b)(c)	D; N; N/EL (b)(c)	D; N; N/EL (b)(c)	D; N; N/EL (b)(c)	D/N	D/N	D/N	D/N
A. TAXONOMY ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable ac tivities (taxonomy-aligned)
OpEx related to environmentally sustainable ac tivities (taxonomy- aligned) (A.1)		0	0%	0%
Of which facilita ting		0	0%	0%
Of which transi tional		0	0%	0%
A.2 Activities eligible in terms of taxonomy but which are not environmentally sustainable (not taxonomy-aligned ac							tivities) (g)
Aircraft manufacturing CCM 3.21		19,930,599	100%	N	N	N	N	N	N	D	D	D
				EL; N/EL (f)	EL; N/EL (f)	EL; N/EL (f)	EL; N/EL (f)	EL; N/EL (f)	EL; N/EL (f)
OpEx related to taxonomy-eligible but environmentally non-sustainable activities (not taxonomy-aligned activities) (A.2)		19,930,599	100%	0%	0%	0%	0%	0%	0%
A. OpEx related to taxonomy eligible activities (A.1+A.2)		19,930,599	100%	100%	0%	0%	0%	0%	0%
B. ACTIVITIES THAT ARE TAXONOMY-NON-ELIGIBLE
OpEx of ac tivities that are taxonomy non-eligible		0	0%
TOTAL (A+B)		19,930,599	100%

activity activity category

Total assets
Financial year		Year 2024			Criteria for substan tial contribu tion							Does Not Signi ficantly Harm (DNSH) criteria
Economic activiti es (1) Code(a)	(2)	Total a s s ets	Proportion of Total As sets (4)	Clim ate ch ang (5) e m tiga i tion	Ada ptati cha on nge to c (6 lim ) ate	Wa ter (7)	Pol lutio n (8 )	Circ ula r ec ono my (9 )	Bio div ers ity (10 )	Clim ate ch (11 ang ) e m tiga i tion	Ada ptati cha on nge to c (1 lim 2) ate	Wa ter (13 )
Text		RON	%	D; N; N/EL (b)(c)	D; N; N/EL (b)(c)	D; N; N/EL (b)(c)	D; N; N/EL (b)(c)	D; N; N/EL (b)(c)	D; N; N/EL (b)(c)	D/N	D/N	D/N
	A. TAXONOMY ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable ac tivities (taxonomy-aligned)
Total assets related to environmentally sustainable activities (taxonomy-aligned) (A.1)		0	0%	0%
Of which facilita t ng		0	0%	0%
Of which transi tional		0	0%	0%
A.2 Activities eligible in terms of taxonomy but which are not environmentally sustainable (not taxonomy-aligned ac							tivities) (g)
Aircraft manufacturing CCM 3.21 814,518,419 100%				N	N	N	N	N	N	D	D	D
				EL; N/EL (f)	EL; N/EL (f)	EL; N/EL (f)	EL; N/EL (f)	EL; N/EL (f)	EL; N/EL (f)
Total assets related to taxonomy eligible but environmentally non sustainable ac tivities (not taxonomy aligned ac tivities) (A.2)		814,518,419 100%		0%	0%	0%	0%	0%	0%
A. Total assets related to taxonomy eligible ac tivities (A.1+A.2)		814,518,419 100%		100%	0%	0%	0%	0%	0%
B. ACTIVITIES THAT ARE TAXONOMY-NON-ELIGIBLE
Total assests of ac tivities that are taxonomy-non-eligible		0	0%
TOTAL (A+B)		814,518,419 100%

Faci l itation Trans ition activity activity category category (19) (20)

Appendix 2

Employees by type of contract, broken down by gender

FEMALE	MALE	OTHER *	UNDECLARED
Number of employees (number of persons)
539	1.307	0	0
	Number of permanent employees (number of persons)
523	1.229	0	0
	Number of temporary employees (number of persons)
16	78	0	0
	Number of employees with non-guaranteed working hours (number of persons)
0	0	0	0
	Number of full-time employees (number of persons)
538	1.306	0	0
	Number of part-time employees (number of persons)
1	1	0	0

FEMALE	MALE	OTHER*	UNDECLARED
Number of employees (number of persons)
553	1.330	0	0
	Number of permanent employees (number of persons)
528	1.224	0	0
	Number of temporary employees (number of persons)
25	106	0	0
	Number of employees with non-guaranteed working hours (number of persons)
0	0	0	0
Number of full-	time employees (number of persons)
552	1.329	0	0
Number of part-	time employees (number of persons)
1	1	0	0

* The gender is as men tioned by the employees.

2023

2024

Appendix 3

Employees by site and type of contract, broken down by gender

			2023
	FEMALE	MALE	TOTAL
Number of employees - Bacău	531	1.238	1.769
Number of employees - Iași	8	69
Total number of employees	539		1.307 1.846

			2024
	FEMALE	MALE	TOTAL
Number of employees - Bacău	542	1.253	1.795
Number of employees - Iași	11	77
Total number of employees	553	1.33	1.883

			2023
	FEMALE	MALE	TOTAL
Total number of employees	539	1.307	1.846
Employees on permanent contracts	495	1.111	1.606
Employees on fixed-term contracts	44	196	240
Full-time employees	538	1.306	1844
Part-time employees	1	1

			2024
	FEMALE	MALE	TOTAL
Total number of employees	553	1.33	1.883
Employees on permanent contracts	498	1.129	1.627
Employees on fixed-term contracts	55	201	256
Full-time employees	552	1.329	1.881
Part-time employees	1	1

Gender distribution by number and percentage at management level

	FEMALE	MALE	TOTAL
Number of management employees	47	135
Percentage of management employees	26%	74%	100%

	FEMALE	MALE	TOTAL
Number of management employees	49	140
Percentage of management employees	26%	74%	100%

Personnel structure by age groups and gender

	FEMALE	MALE	TOTAL
< 30 YEARS	79	301
31-50 YEARS	294		497
> 50 YEARS	166		509
Total	539	1.307	1.846

	FEMALE	MALE	TOTAL
< 30 Trial 31-	83		341
50 YEARS	304		499
> 50 YEARS	166		490
Total	553	1.330	1.883

FEMALE	MALE	TOTAL
	16%
	27%
	28%
	71%	100%
		4% 16% 9% 29%

2024

2023

2024

2023

	FEMALE	MALE
< 30 YEARS	4%	18%
31-50 YEARS	16%	27%
> 50 YEARS	9%	26%
Total	29%	71%

2024

APPENDIX 4

ESRS REPORTING REQUIREMENTS COVERED BY THE SUS TAINABILITY S TATEMENT

Standard	Disclosure requirements (RR)	Applicable data points
	BP-1- General basis for preparing the sustainability statements	5(a), 5(c), 5(d)
	BP-2- Reporting information regarding specific circumstances	13(a), 15,16, AR 2
	GOV-1 - The role of the administrative, managementand supervisory bodies	21, 22, 23, AR3
	GOV -2 – Information provided to the company's administrative, management andsupervisorybodiesandsustainabilityaspects 26(a), 26(b) addressed by them
	GOV-3- Integratingsustainabilityperformanceintoincentive schemes	27
	GOV-4 - Statement on due diligence	30, AR 10
ESRS S2	GOV-5 - Riskmanagement andinternalcontrolsrelatedto sustainability reporting	34
	SBM-1 -Strategy, business model and value chain	40(a), 40(b), 42
	SBM-2 -Stakeholders' interests and views	45
	SBM-3- Materialimpacts,risksandopportunitiesandtheir interaction with strategy and business model	48
	IRO-1 -Description of processes to identify and assess material impacts, risks and opportunities	53
	IRO-2– Disclosurerequirementsin ESRScoveredby the company's sustainability statement	56, 59
	MDR-P Policies- Policiesadoptedto managematerial sustainability aspects
	MDR-A Actions- Actionsandresourcesinrelationtomaterial sustainability aspects
	Indicators and targets
	MDR-M – Metrics in relation to material sustainability matters
	MDR-TTargets- Trackingtheeffectivenessof policiesand actions through targets

Standard	Disclosure requirements (RR)	Applicable data points
	E1-1 –Transition plan for climate change mitigation17

	E1-2 –Climate change mitigation and adaptation policies	22
		25
	E1-3 –Climate change policy actions and resources 26

	E1-4 –Climate change mitigation and adaptation targets 30

ESRS E1 – Climate change	E1-5 –Energy consumption and energy mix	35,37,39
	E1-6– Grossemissionsof GHGcategories1,2,3 andtotal 44,48,49,53
	GHG emissions
	E1-7 –GHG removals and GHG mitigation projects financed
	through carbon credits
	E1-8 –Internal carbon pricing	62

	E1-9 –Anticipated financial impacts of material physical and	64
	transition risks and potential climate-related opportunities
	E2-1 –Pollution-related policies	12
	E2-2 –Pollution actions and resources	16
ESRS E2 –	E2-3 –Targets related to pollution	20, 23
Pollution	E2-4 –Air, water and soil pollution	26
	E2-5– Substancesof concernandsubstancesof veryhigh 32, 35
	concern
	E2-6– Anticipatedfinancialeffectsof pollution-related36
	impacts, risks and opportunities
	E3-1 –Water and marine resources-related policies 9
	E3-2– Actionsandresourcesrelatedto waterandmarine 15 resources
ESRS E3 – Water and	E3-3 –Targets related to water and marine resources20
marine resources	E3-4 –Water consumption	26, 29
	E3-5– Anticipatedfinancialeffectsof impacts,risksand
	opportunities related to water and marine resources
	E4-1– Transitionplanandconsiderationf biodiversityand
	ecosystems in the strategy and business model

	E4-1– Transitionplanandconsiderationf biodiversityand
	ecosystems in the strategy and business model
ESRS E4 –	E4-2 –Biodiversity and ecosystems policies
Biodiversity and	E4-3– Actionsandresourcesrelatedto biodiversityand
ecosystems	ecosystems
	E4-4 –Targets related to biodiversity and ecosystems
	E4-5 – Impact metrics related to biodiversity and ecosystems
	change
	E4-6– Anticipatedfinancialimpactsfrombiodiversityand
	ecosystem-related risks and opportunities

	E5-1 –Policies related to resource use and circular economy	12
	E5-2– Actionsandresourcesrelatedtoresourceuseandthe 17
	circular economy
ESRS E5 –	E5-3 –Targets related to resource use and circular economy	21
Resource use and circular economy	E5-4 – Resource inflows
	E5-5 – Resource outflows	33,37,39
	E5-6– Anticipatedfinancialeffectsof materialrisksand	41
	opportunities arising from resource use and circular economy
	related impacts

Standard	Disclosure requirements (RR)	Applicable data points
	S1-1 –Own workforce policies	19, 20 (a), 20 (b), 20 (c), 21, 23, 24 (a), 24 (b), 24 (c), 24 (d), AR 13
	S1-2– Processesforengagingwithownworkersandworkers' representatives on impacts	27 (a), 27 (b), 27 (c), 27 (e), 28
	S1-3 –Processes to remediate negative impacts and channels for own workers to raise concerns	32 (a), 32 (b), 32 (c), 32 (d), 32 (e), 33
	S1-4 – Taking action on material impacts on own workforce and approachesto mitigatingmaterialrisksandpursuingmaterial opportunitiesrelatedto ownworkforce,andeffectivenessof those actions	38 (a), 38 (b), 38 (c), 38 (d), 40 (a), 40 (b), 41, 43, AR 42
	S1-5– Targetsrelatedtomanagingmaterialnegativeimpacts, advancingpositiveimpactsandmanagingmaterialrisksand opportunities	46, 47 (a), 47 (b), 47 (c)
ESRS S1	S1-6 –Characteristics of the company's employees	50 (a), 50 (b) i., 50 (b) ii., 50 (b) iii., 50 (c), AR 55
Own workforce	S1-7 – Characteristicsof non-employeeworkersin the company's own workforce	55 (a)
	S1-8 –Coverage of collective negotiations and social dialogue	60 (a)
	S1-9 –Diversity metrics	66 (a), 66 (b)
	S1-10 –Adequate salaries	69
	S1-11 –Social protection	74 (a), 74 (b), 74 (c), 74 (d), 74 (e)
	S1-12 –People with disabilities	79
	S1-13 - Training and skills development metrics	83 (a), 83 (b)
	S1-14 - Health and safety metrics	88 (a), 88 (b), 88 (c), 88 (d), 88 (e), AR 91
	S1-15 - Work-life balancemetrics	93 (a), 93 (b)
	S1-16 –Remuneration metrics (pay gap and total remuneration)	97 (a), 97 (b), AR 100,AR 101 (a)
	S1-17– Incidents,complaintsandseverehumanrightsissues 102, 103 (a) and incidents

Standard	Disclosure requirements (RR)	Applicable data points
	SBM-3– Materialimpacts,risksandopportunitiesand their interaction with the strategy and business models	11, 11 a) i÷, 11 b), 11 c), 11 e)
	S2-1 Policies related to value chain workers	17, 18, 19, AR.15,AR.12,AR.16
	S2-2- Processesforengagingwithvaluechainworkers about impacts	22. a ÷ b), 22. c), 22. d), 22. e)23
ESRS S2 Workers in the value chain	S2-3– Processesto remediatenegativeimpactsand channels for value chain workers to raise concerns	27 a), 27 b ÷ d), 28, AR25
	S2-4 – Taking action on material impacts on value chain workersandapproachestomanagingmaterialrisksand pursuingmaterialopportunitiesrelatedto valuechain workers, and the effectiveness of those actions	32, 33,36
	S2-5– Targetsrelatedto managingmaterialnegative impacts,promotingpositiveimpactsand managing material risks and opportunities

Standard	Disclosure requirements (RR)	Applicable data points
	S3-1 -Policies related to affected communities 12, 16, 17
	S3-2 – Processesfor engagingwith affected 19, 21 (c, d), 22 communities about impacts
ESRS S3 Affected communities	S3-3– Processesto remediatenegativeimpactsand channels for affected communities to raise concerns	25, 27 (b, c, d), 28
	S3-4– Takingactionon materialimpactson affected communities and approaches tomanaging material risks andpursuingmaterialopportunitiesrelatedto affected communities, and the effectiveness of those actions	30, 32 (a,c), 33 (b), 34, 36
	S3-5– Targetsrelatedto managingmaterialnegative impacts,promotingpositiveimpactsand managing materials risks and opportunities

Standard	Disclosure requirements (RR)	Applicable data points
	S4-1 - Policies related to consumers and end-users
	S4-2 –Processes for engaging with consumers and end users about impacts
ESRS S4	S4-3– Processesto remediatenegativeimpactsand channels for consumers and end-users to raise concerns
Consumers and end users	S4-4 – Taking action on material impacts on consumers and end-users and approaches to managing material risks and pursuing material opportunities related to consumers and end-users, and the effectiveness of those actions
	S4-5– Targetsrelatedto managingmaterialnegative impacts,promotingpositiveimpactsand managing material risks and opportunities

Disclosure requirement and related data point	SFDR reference(1)	Pillar 3(2) reference	Reference in the Benchmarks Regulation(3)	EU Climate Law Reference(4)
ESRS E1-4 GHG emission reduction targets point 34;	Indicator No. 4 in Table 2 of Annex 1	Article 449a (EU) Regulation No. 575/2013; Commission Implementing Regulation (EU) 2022/2453 Model 3: Banking book - Climate Change Transition Risk: Alignment Indicators	Delegated Regulation (EU) 2020/1818, Article 6
ESRS E1-5 energy consumption and mix point 37	Indicator No. 5 in Table 1 of Annex 1
ESRS E1-6 Gross scopes 1, 2, 3 and total GHG emissions point 44 ESRS E1-6 Intensity of gross GHG	Indicators 1 and 2 in Table 1 of Annex 1 Indicator No. 3 in Table 1 of Annex 1	Article 449a of (EU) Regulation No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Model 1: Banking book - Climate change transition risk: credit quality of exposures by sector, emissions and residual maturity Article 449a of (EU) Regulation No. 575/2013;	Delegated Regulation (EU) 2020/1818, Articles 5(1), 6 and 8 paragraph (1) Delegated Regulation (EU) 2020/1818, Article 8 paragraph (1)
emissions paragraphs (53)-(55)		Commission Implementing Regulation (EU) 2022/2453 Model 3: Banking book - Climate change transition risk: alignment indicators
ESRS E1-7 GHG removals and carbon credits paragraph 56				Regulation (EU) 2021/1119, Article 2 paragraph (1)
ESRS E2-4 Quantity of each pollutant listed in Annex II of the European Pollutant Release and Transfer Register "E PRTR Regulation" emitted to air, water and soil, point 28	Indicator No. 8 in Table 1 of Annex 1 Indicator No. 2 of Table 2 inAnnex 1 Indicator No. 1 of Table 2 inAnnex 1 Indicator No. 3 of Table 2 inAnnex 1

ESRS E3-1	Indicator No. 7 of
Water and marine	Table 2 inAnnex 1
resources point 9
ESRS E3-1	Indicator No. 8 of
Specific policy point 13	Table 2 inAnnex 1
ESRS E3-4	Indicator No. 6.2 of
Total water recycled and	Table 2 inAnnex 1
reused point 28(c)
ESRS E3-4	Indicator No. 6.1 of
Total water consumption	Table 2 inAnnex 1
in its own operations in
m3 per net revenue
paragraph 29
ESRS 2- IRO 1 - E4	Indicator No. 7 of
point 16(a) (i)	Table 1 inAnnex 1
ESRS 2- IRO 1 - E4	Indicator No.10 of
point 16 (b)	Table 2 inAnnex 1
ESRS 2- IRO 1 - E4	Indicator No. 14 of
point 16 (c)	Table 2 inAnnex 1
ESRS E5-5	Indicator No. 13 of
Non-recycled waste point	Table 2 inAnnex 1
37(d)
ESRS E5-5	Indicator No.9 of
Hazardous waste and	Table 1 inAnnex 1
radioactive waste point
39

ABBREVI ATIONS

ADCR	Aerospace and Defence Chromates Reauthoriza tion
AGOA	Ordinary General Mee ting of Shareholders
ASF	Financial Supervisory Authority
BVB	Bucharest Stock Exchange
CAEN	Classification of Activities in the National Economy
CSRD	Council on Sustainable Repor ting Standards
CTAC	Chromium Trioxide Authoriza tion Consor tium
EASA	European Aviation Safety Agency
ECHA	European Chemicals Agency
EMAR	European Military Airworthiness Requirements
ESRS	European Sustainability Repor ting Standard
EUID	tifier of the Company European Unique Iden
FAA	Federal Aviaton Administration
GDPR	General Data Protec tion Regulation
GHG	Greenhouse Gases
IAS	International Accountig Standards
IFRS	International Financial Repor ting Standards
OCDE	Organization for Economic Coopera tion and Development
OIM	International Labour Organiza tion
UN	United Nations
PEHD	High-Density Polyethylene
REACH	Registration, Evaluation, Authorization and Restric tion of Chemicals
SSM	Occupational Health and Safety

AEROSTAR S.A. Trial

INDIVIDUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

Prepared in accordance with The Order of the Minister of Public Finance no. 2844/2016, for the approval of the Accounting Regulations in accordance with the International Financial Reporting Standards

COMPANY STATEMENT OF PROFIT OR LOSS OTHER COMPREHENSIVE INCOME COMPANY STATEMENT OF FINANCIAL POSITION CAMPANY STATEMENT OF CASH FLOWS COMPANY STATEMENT OF CHANGES IN EQUITY NOTES TO THE COMPANY FINANCIAL STATEMENTS

AEROSTAR S.A. BACĂU COMPANY STATEMENT OF PROFIT OR LOSS FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024 (unless specified otherwise, all amounts are stated in thousand lei)

	Note	31 December 2024	31 December 2023
Operating income
Sales revenue	19	584.004	506.294
Other revenue	19	2.489	2.894
Income from stocks of finished goods and production		45.210	22.386
in progress	19
Income from the production of fixed assets	19	1.338	877
Income from operating subsidies	19	305	611
Total operating income		633.346	533.062

Operating expenses
Material expenses	20	(264.474)	(219.820)
Expenses on employee benefits	20	(202.037)	(172.440)
Expenses on depreciation of fixed assets	5;6;20	(27.110)	(25.946)
Net income (expenses) from current asset	20	(11.034)	(14.760)
adjustments
Net income (expenses) from provision adjustments	20	17.489	27.240

Expenses on external services	20	(50.426)	(40.454)
Other expenses	20	(8.559)	(7.091)
Total operating expenses		(546.151)	(453.271)

Profit/loss from operating activity		87.195	79.791

Financial income	21	24.927	24.823
Financial expenses	22	(7.313)	(7.658)
Financial profit/loss		17.614	17.165

Profit before tax		104.809	96.956

Tax on current and deferred profit	17;23	(9.084)	(3.928)
Net profit of the period		95.725	93.028
Chief Executive Officer,		Financial Director,

Alexandru Filip Doru Damaschin

AEROSTAR S.A. BACĂU COMPANY STATEMENT OF OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED ON 31 DECEMBER 2024 (unless specified otherwise, all amounts are stated in thousand lei)

	31 December 2024	31 December 2023
Net profit for the period	95.725	93.028
Deferred income tax recognised on account of company equity	(3.739)	(3.605)
Fair value revaluation of equity instruments through other comprehensive income	7.890	(3.839)
Gain transferred to retained earnings on sale of company equity instruments through AECP	480	74
Other comprehensive income	4.631	(7.370)
Total comprehensive income for the period	100.356	85.658
Chief Executive Officer,	Financial Director,
Alexandru Filip	Doru Damaschin

AEROSTAR S.A. BACĂU COMPANY STATEMENT OF THE FINANCIAL POSITION FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024 (unlessspecifiedotherwise, allamountsarestatedinthousandlei)

	Note	31December 2024	31 December 2023
ASSETS
Non-current assets
Property, plant and equipment	6	159.745	159.487
Intangible assets	5	1.788	1.808
Investment property	6	6.598	7.296
Rights to use assets under lease	32	1.723	1.746
Fixed financial assets	7	46.133	57.732
Receivables on deferred income tax	17	20.103	20.316
Total non-current assets		236.090	248.385
Current assets
Inventories	10	206.205	161.042 90.175
Trade receivables and other receivables	8;9;18 23	110.772 -	262
Current corporate tax receivables
Short-term prepaid expenses	31	1.049	789
Cash and cash equivalents	11	260.403	245.792
Total current assets		578.429	498.060
Total assets		814.519	746.445
COMPANY EQUITY AND LIABILITIES Capital and reserves Share capital Current result Result carried-forward Reserves Deferred income tax recognized on equity Distribution of profit for legal reserve Total company equity Long-term liabilities Liabilities regarding deferred income tax Subsidies for long-term investments Other long-term liabilities Total long-term liabilities	12 12 12 12 17 12 12 17 14 16	48.729 95.725 54.374 467.681 (27.444) (18.731) 620.334 28.834 724 1.467 31.025	48.729 93.028 51.577 410.028 (23.481) (27.924) 551.957 25.191 1.550 1.490 28.231
Long-term provisions	13	43.866	55.511
Current liabilities
Trade liabilities	15;18	59.246	48.059
Current corporate income tax liability	23	7
Prepaid income	31	3.448	2.916
Subsidies for short-term investments	14	828	830
Other current liabilities Total current liabilities	16	14.523 78.052	11.878
Short-term provisions	13	41.242	63.683 47.063
Total provisions			102.574
Total liabilities		85.108	91.914
		109.077
Total company equity, liabilities and provisions		814.519	746.445

Chief Executive Officer, Financial Director,

Alexandru Filip Doru Damaschin

AEROSTAR S.A. BACĂU COMPANY STATEMENT OF CASH FLOWS (DIRECT METHOD) FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024 (unless specified otherwise, all amounts are stated in thousand lei)

Note	31.12.2024	31.12.2023
CASH FLOWS FROM OPERATING
ACTIVITIES
cash collected from customers	591.206	527.562
tax and excise recoveries from the State Budget	13.031
subsidies received from the State Budget	309
payments to suppliers	(348.789)	(310.714)
payments to employees	(121.949)	(106.194)
payments of taxes, contributions and duties to
the State Budget	(86.234)	(74.449)
payments of profit tax to the State Budget	(9.256)	(6.969)
NET CASH FROM OPERATING
27 ACTIVITIES	38.318	33.704
CASH FLOWS FROM INVESTING
ACTIVITIES
interest income from bank deposits	8.969	14.508
proceeds from sale of financial fixed assets 27	20.468
proceeds from non-reimbursable funds	-
dividends received from other entities	3.498
dividends received from affiliated entities	516
payments for purchase of financial fixed assets 7, 27	-	(10.653)
payments for purchase of property, plant and
equipment and intangible assets	(26.952)	(22.833)

NET CASH FROM INVESTMENTS 27	6.499	(6.516)
CASH FLOWS FROM FINANCING
ACTIVITIES
gross dividends paid	(30.893)	(26.370)
NET CASH FROM FINANCING 27	(30.893)	(26.370)
ACTIVITIES
Net increase/decrease in cash and cash	13.924
equivalents
Cash and cash equivalents at the beginning	245.792	246.173
of the period
Effect of exchange rate changes on cash and 27	687	(1.199)
cash equivalents
Cash and cash equivalents at the end of the 11	260.403	245.792
period

Chief Executive Officer, Financial Director,

Alexandru Filip Doru Damaschin

AEROSTAR S.A. BACĂU COMPANY STATEMENT OF CHANGES IN COMPANY EQUITY FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024 (unless specified otherwise, all amounts are stated in thousand lei )

	Share capital	Reserves	Reserves from revaluation of financial assets through other comprehensive income
Comprehensive result
A. Balance on 1 January 2024	48.729	407.359	2.669
Profit for the period
Other comprehensive income Set up of deferred income tax recognised as company equity
Allocation of the profit for the financial year 2023 to the uses decided by the shareholders at the OGMS on 18 April 2024 (Note 12)
Allocation of the profit made in 2024 to tax relief
reserves, in gross amounts		18.731

Gain transferred to retained earnings on sale of equity instruments through other comprehensive income			(2.448)
Revaluation at fair value of equity instruments through other comprehensive income			7.890
Transfer to reserves of retained earnings representing
surplus from revaluation reserves		356
Total comprehensive income for the period	-	19.087	5.441
Reserves distributed from the profit of 2023		33.125
Dividends distributed for 2023 Transactions with shareholders recognised directly
in equity	-	33.125	-
B. Balance on 31 December 2024	48.729	459.571	8.110
C. Changes in equity (Note 12)	-	52.212	5.441

* The result on 31.12.2023 is 93.028 thousand lei and is influenced by the distribution of profit on other reserves from tax facilities in the amount of 27.924 thousand lei;

** The result on 31.12.2024 is 95.725 thousand lei and is influenced by the distribution of profit on other reserves from tax facilities in the amount of 18.731 thousand lei;

Chief Executive Officer, Alexandru Filip

Financial Director, Doru Damaschin

AEROSTAR S.A. BACĂU COMPANY STATEMENT OF CHANGES IN EQUITY FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023 (all amounts are stated in thousand lei)

Financial Director, Doru Damaschin

the period Total equity

	Share capital	Reserves	Reserves from revaluation of financial assets through other comprehensive income
Comprehensive income
A. Balance on 1 January 2023	48.729	324.149	7.235
Profit of the period
Other comprehensive income
Setting up of deferred income tax recognized in equity
Distribution of the profit for the financial year 2022 to the destinations decided by the shareholders at the AGM of 20 April 20, 2023 (Note 12)
Distribution of the profit realized in 2023 for tax incentive reserves in gross amounts		27.924
Gain transferred to retained earnings related to the sale of equity instruments through other elements of comprehensive income			(727)
Revaluation at fair value of equity instruments through other elements of comprehensive income			(3.839)
Transfer to reserves of the retained earnings representing surplus generated from revaluation reserves		384
Total comprehensive income for the period	-	28.308	(4.566)
Reserves distributed from 2022 profit		54.902
Dividends distributed for 2022
Transactions with shareholders recognized directly in equity	-	54.902	-
B. Balance on 31 December 2023	48.729	407.359	2.669
C. Changes in equity (Note 12)	-	83.210	(4.566)

* The result of 90.273 thousand lei on 31.12.2022 is influenced by the distribution of the profit to other reserves from tax incentives in the amount of 7.961 thousand lei;

** The result of 93.028 thousand lei on 31.12.2023 is influenced by the distribution of the profit to other reserves from tax incentives in the amount of 27.924 thousand lei;

Chief Executive Officer, Alexandru Filip

NOTE 1 - COMPANY DESCRIPTION

AEROSTARwasestablished 1953andoperatesn accordanceiththeRoma AEROSTARS.A. performits activityat its registered adofficelocatedn B Condorilor Street, code 600302. In accordance with the Resolution no. 2 Directors, the opening of a secondary place of business without legal per in Iasi, on 25B Aeroportului Street has been approved. Moreover, in acco theBoardf Directorsr. 1/02.06.20theopeningf a secondaryfficewithoulegabe (workplace) located in Fetesti, 2 Carpați Street, ap. 7 has been approved

The main field of activity of AEROSTAR is production.

The main object of activity of the company is "Manufacture of aircr 3031.

Thecompanyasregisteressa shareholdingmpanattheBacauTraddegis numbe][1991001137040]ththecurrentame"AEROSTARS.A." andtheuniqueder code 950531, the European Unique Identifier (EUID) code ROONRC.J199

Thecompanis listelontle Buchares tok Exchangundethe ARS codeam ther its shares and shareholders is kept, as provided by law, by S.C. Depozitar

Duringtheyear2024,therewasno subscriptionf newsharesporany part certificates, convertible bonds, warranties, options or similar rights.

In terms of accounting regulations, AEROSTAR S.A. is a subsidiary S.A. and, therefore, the parent company that consolidates the financial st TAROMS.A., withtheuniquédentificationode1555301havingts registeredeado Bucharest, at number 39, Aerogarii B-d. The consolidated financial stater 2021weresubmitted A.N.A.F.underegistrationumber 70692053/22.08.2004pic consolidate manciastatements obtained on the head office of the parent of IAROM S.A. The parent company will prepare and publish a set of consol in accordance with the applicable accounting regulations, for the financia

Thecompanyasa singleoperatingegmenth accordanowithIFRS8 andno financial information is available for various components of the entity. Th sales by categories of products and markets is detailed in the Board of Di

The company's policy is focused on maintaining a solid capital basis continuous development of the company and the achievement of its strate

The company will continue to act decisively to ensure the sustainab thepreservationiits production pabilities urthermothank so the sperience in e ourteamthecompanyctstowardfindinghemostappropriaselutions thenewed challenges.

NOTE 2 - ACCOUNTING ESTIMATES, ASSUMPTIONSAND JUDGEMENTS

2.1. Estimates

Thepreparationandpresentationf theindividualfinancialstatementsinaccordancewith IFRSinvolvestheuseof estimates, judgementsandassumptionsthataffecttheimplementationof the accounting policies as well as the reported value of the assets, liabilities, revenues and expenses.

Theestimatesandjudgementsaremadebasedonthehistoricexperienceaswellasona series of factors considered adequate and reasonable. The accounting estimatesnd judgements are continuously updated and take into account reasonable expectations with respect to future probable events.Thereportedaccountingvaluesof theassets,theliabilitiesthatcannotbedeterminedor obtainedfromothersourcesarebasedontheseestimatesconsideredadequateby theCompany's management.

Suchestimates, aswellasthereasoningandassumptionsbehindthemarereviewedona regular

basis and the result thereof is recognized in the time period when the estimate was reviewed. Any change in the accounting estimates will be recognized prospectively by its inclusion in the result:

of the period of time when the change occurs, if it affects only that period of time; or of theperiodof timewhenthechangeoccursandof thesubsequent periods,if the change also affects such periods.

The Company uses estimates in order to determine:

the uncertain customers and the adjustments for impairment of related receivables; thevalueof theprovisionsfor risksandexpensesto setupat theendof theperiod (month,trimester,year)for litigations,for the dismantlingof property,plantand equipment, forcollateralsgrantedto customers, forobligationstowardmanpowerand other obligations;

theadjustments forimpairment ofproperty,plantandequipmentandintangibleassets. At the end of each reportingperiod,the Companyestimateswhetherthereare indicationsof impairment. If suchsignsareidentified,therecoverableamountof the asset is estimated to determine the extent of impairment (if any). the lifetimes of property, plant and equipment and intangible fixed assets. The Company reviews the estimated life of the tangible and intangible fixed assets at least at the end of each financial year to determine their adequacy.

thestocksof rawmaterialsandmaterialsrequiringthesettingup of depreciation adjustments;

deferred taxes.

Disclosure of information

The Company will, to the extent practicable, disclose the nature and value of a change in an accounting estimate that is effective in the current period/future periods.

2.2. Errors

Errorsmayarisein therecognition, evaluation, presentationrdescriptionof itemsin the financial statements.

TheCompanyretroactivelycorrectsthesignificanterrorsof thepriorperiodinthefirstset of financial statements approved for issue after the discovery of such errors by:

restatingthecomparativevaluesfor thepriorperiodpresentedin whichtheerror occurred, or

if the error occurred before the prior period presented, by restating the opening balances of assets, liabilities and equity for the prior period presented.

NOTE 2 - ACCOUNTING ESTIMATES, ASSUMPTIONSAND JUDGEMENTS (continued)

In case of identifying an error, the Company presents the following information: - the nature of the error for the previous period;

for each previous period presented, to the extent possible, the correction value: for each affected line item in the financial statement;
- for basic and diluted earnings per share.

the correction value at the beginning of the first previous period presented; if retrospectiverestatementis impracticablefor a specificprior period,the circumstances leadingto theexistenceof thatconditionanda descriptionof howand when the error was corrected.

2.3. Changes in the accounting policies

Changestotheaccountingpoliciesareonlypermittedif theyarerequestedby IFRSorif they result in more relevant or reliable information about the Company's operations.

The Company modifies an accounting policy only if such change:

is required by an IFRS; or
resultsin financialstatementshatprovidereliableandmorerelevantinformationwith referenceto theeffectsof thetransactions, of othereventsor conditionson thefinancial performance or cash flows of the entity.

Application of changes in the Accounting Policies:

theentitytakesintoaccounta changein theaccountingpolicythatresultsfromtheinitial implementationof anIFRSin accordancewiththespecifictransitoryprovisions,if any,of that IFRS; and
at the initial application of an IFRS that does not include specific transitory provisions.

Disclosure of information

When theinitialapplication of an IFRShas aneffecton thecurrentor priorperiod of time,the Company discloses in the explanatory notes the following:

the title of IFRS;

the nature of the accounting policy change;

whenapplicable,the fact thatthe changeis madeas an effectof the transitory dispositions and a description of these transitory provisions;

for the current period and for each prior period, the sum of adjustments for each affected element of the statement of the financial position, to the extent possible. When it is impossible to determine the specific effects for one or more prior accounting periods,

theCompanywillapplythenewaccountingpolicyof assetsandliabilitiesforthefirstperiodfor which the retroactive application is possible, which may also be the current period. Whena voluntarychangeintheaccountingpolicyhasaneffectonthecurrentorpriorperiod,

the Company discloses in the explanatory notes:

the nature of the change of accounting policy;
the reasons for which the application of the new accounting policy provides more reliable and relevant information;
for thecurrentperiodandfor eachprioraccountingperiod,the estimatedsumof adjustmentsfor eachaffecteditemof thestatementof thefinancialposition,insofaras possible.

NOTE 3 - ACCOUNTING AND EVALUATION PRINCIPLES

3.1. Bases for the preparation and presentation of the financia

The individualinanciastatements Aerostas.A. are preparedn accordanceith provisions of:

the International Financial Reporting Standards (IFRS) adopted by t

Changes in accounting policies and adoption of revised/a

The changes take effect for the annual reporting periods beginning on or a

Standards Changeso Standards)nd interpretation opted y International Accounting Standards Committee:

1. Amendments IAS 1 "Presentation FinanciaStatementsThe amendme designedo promoteonsistencin the application the requirements IAS helpingo determinenethern thestatement financiapositiontheliabiliti otherobligationsithanuncertairettlementateshouldeclassifiedscurremt currentt alsoclarifies owthisclassification affected y theexistencef cont clauses (covenants);
1. Amendments FRS16'Leases hichareintendetti improveherequirement seller-lessees in measuringease liabilities risingfrom a sale and lease transaction under IFRS 16;
1. Amendments IAS 7 and IFRS 7 introducingisclosuræquirementsr
  v financingrrangementsquiranentsquiranentityto disclosen thenotes financia tatementsetermsf vendofinancingrrangements additionentit required disclosen theexplanatomotesat thebeginningndendof therep periodherecorder mountsf vendofinancingrrangement of helineitem in v thoseiabilitiearedisclosed,swellas therecordedmountof financiallabilit which the related trade liabilities have been settled by the factors (f

These changes did not have a material impact on the Company's Fina

EuropeaSustainabilityportingandardESRSadoptedytheEuro Union:

The DelegatedRegulation(EU) 2023/2772f the Commission f 31 July supplementition Directive 013/34/Ebf the Europea Parliamemandof the Cour regardsustainabiliityporting and argeompanies mallandmedium companiewithsecurities mittetb tradingn regulatemarketin theEU and companies largegroupso includen a dedicates ections thedirectorseport consolidated directors' report the information

NOTE 3 - ACCOUNTING AND EVALUATION PRINCIPLES C

neededo understartile Company's pacton sustainabilityatters This shoul includethe informatiomeeded o understandow sustainability atteraffe Company'slevelopmenherformancænd position.Companieshouldprepa information accordanceiththesustainabilityportingtandards erosta8.A. applytheseustainabilityportingtandardsor thefinanciayearbeginning Ja 2024.

Thefollowinghangerreeffectivforannuareportingeriodbeginningnorafteyanu 2025 subjecto adoptiony regulationy the Europeadommission he Companis eva the potentialeffectsof the new Standardand amendments the Internationalin Reporting Standards.

1. IFRS 18 'Presentationd Disclosuin the Financial tatements R includes requirements for all entities that apply IFRS on the pres of information financiatatementshestandard willplaceAS 1andintro significant changes aimed at improving the comparability and tra performanceportingf adopted hestandards plannedlo be effective or a reporting periods beginning on or after January 1, 2027;
1. IFRS 19 'SubsidiariesthouPublicAccountabilityIFRS 19 specif reportingbligationshat an eligiblesubsidiaryas in place of the rep requirements in IFRS;
1. Amendments IAS 21 'Accountinfor ForeignCurrency ransactions an whena currencjs deemedo be exchangeabiletoanotherurrencyndho entity estimates a spot rate for non-exchangeable currencies;
1. Amendments FRS9 and FRS7 on Classification dMeasurement.Fin Instrumentsheamendments suesdentifieduringhepost-implem reviewof the classificationand measurements IFRS 9 Fin Instruments.

Accounting Law no. 82/1991, republished, as subsequently amended

O.M.F.P.no.881/2010n theapplication financia Reporting ta by companies whose securities are admitted for trading on a regulat

O.M.F.P. no. 2.844/2016 on the approval of the Accounting Regulation International Financial Reporting Standards, as subsequently ameno

OM.F.P.no. 2.861/2009n theapprovadf theNormsegardingheorganizati performance of the inventory of items such as assets, liabilities and

O.M.F.P.no. 1.826/2008n the approvabf the Explanatorylemorandumega certain organizational and leading measures for management accou

O.M.F.P. no. 2.634/2015 on the financial accounting documents, as su and supplemented.

NOTE 3 - ACCOUNTING AND EVALUATION PRINCIPLES (continued)

Theaccountingis keptin Romanianandin thenationalcurrency.Theaccountingof operations carriedout in foreigncurrencyis keptbothin nationalcurrencyandin foreigncurrency.The financial year is the calendar year. Financial statements are drawn up and reported in thousands of lei and all values are rounded to the nearest thousand lei. Due to rounding, the numbers presented do not alwaysaccuratelyreflectthetotalsprovidedandthepercentagesdo notalwaysaccuratelyreflect absolute figures.

The financial statements are drawn up on the basis of historical cost. The financial statements are presented inaccordance with the requirements of IAS 1 Presentation of FinancialStatements . TheCompanyhasoptedfora presentationbynatureandliquiditywithinthe statementof financialpositionanda presentationof incomeandexpensesby naturewithinthe statement ofprofit or loss, considering that these methods of presentation provide information that is relevant to the Company's situation.

3.2. Accounting policies applied

AerostarSA describestheaccountingpoliciesit appliesin thenotesto theindividual financialstatementsandavoidsrepeatingthetextof thestandardunlessit is considered relevant to the understanding of the contents of the note.

The most significant accounting policies are presented below:

Accounting Policies regarding property, plant and equipment

TheCompanyhaschosenasitsaccountingpolicythecostmodel.Afterrecognitionasanasset, property,plantandequipmentis accountedfor at costlessaccumulateddepreciationandany accumulated impairment losses.

Thedepreciableamountis allocatedona systematicbasisovertheusefulifeof theassetand represents the cost of the asset less the residual value.

Given thespecificnature of thebusiness andthe typesof fixedassets intheCompany assets,the residualvaluesof thefixedassetswereconsideredto beinsignificant. In practice,theresidual valuehasbeencalculatedat thelevelof thecountervalueof recoverablescrapmetal,after deduction of dismantling, disassembly and sale expenses.

Thedepreciationmethodsandusefulifetimesarereviewedatleastattheendof eachfinancial year and adjusted accordingly. The usefulifetimes are determined by committees made up of the Company's specialists. Any change to them is accounted for prospectively. Subsequent expendituresrelatedto anitemof property,plantandequipmentareaddedto the carrying amount of the asset when:

they result in an improvement of the initial technical parameters;
they are sources of future economic benefits materialised by additional cash flows in excess of those originally estimated; and
they can be measured reliably.

Benefitsare obtaineddirectlyby increasingthe revenuesand indirectlyby reducingthe maintenance and operating costs.

All otherepair and maintenance expenses made to ensure the continued use of the property, plant andequipmentarerecognisedin thestatementof profitor losswhentheyaremade.Theyare made in order to maintain the initial technical parameters.

NOTE 3 - ACCOUNTING AND EVALUATION PRINCIPLES (continued)

The spare parts are generally accounted for as inventories and recognised as expenses when used up. If thesparepartsandserviceequipment, havingsignificantvalues,canonlybeusedinconnection with an item of property, plant and equipment, they are recognised as property, plant and equipment if the original purchase value (when put into service) of the replaced part can be determined. Indecidingwhethertorecogniseseparatecomponents, eachcaseis analysedindividuallybased on professional reasoning.

Theproperty,plantandequipmentunderconstructiontobeusedin productionoradministrative activitiesis presentedin the statementof financialpositionat cost less any accumulated impairmentloss.Suchassetsareclassifiedin therespectivecategoriesof property,plantand equipment when they are completed and ready for use in the manner intended by management for the stated purpose.

The top management of the Company has set a ceiling for the capitalization of assets of 2.500 lei. All acquisitions below this amount will be considered as expenses of the period. Exceptions:Computersare consideredto be depreciableproperty,plant and equipment irrespective of their entry value and will depreciate over their usefulifetime as determined by the ReceivingCommittee. Furthermore, theworktoolsanddevicesareaccountedforasinventories and recognised as expenses of the period when they are used up, irrespective of their entry value, taking into account the fact that they have a useful lifetime of normally less than one year as well as their degreeof specialisation(they are intendedto be used for a specifictype of product/service).

In thecaseof internallygeneratedintangibleassets,theimplementationphasesareclearly separated, namely:

Research phase. Research costs are treated as expenses of the period; Developmentphase.Developmentcostsarerecognisedasanintangibleassetif the following conditions are demonstrated:

technical feasibility of completing the asset so that it is available for use or sale;
availabilityof adequateresources- technical,financial,human- to completethe development;
intention to complete and use or sell the intangible asset;
ability to use or sell the asset;
how the asset will generate future economic benefits;
ability to assess the costs.

If the Company cannot distinguish between the research and the development phase of an internal projectocreateanintangibleasset,theCompanyshalltreathecostsof theprojectasincurred exclusively in the research phase.

The Company has chosen as its accounting policy the cost model that requires intangible assets to be valuedat net book valueequalto theircost less the accumulateddepreciationand any impairment losses recorded in relation to those assets.

An investmentpropertyis initiallyvaluedat cost,includingany otherdirectlyattributable expenses. After the initial recognition, the Company has opted for the cost-based model for all its investment property in accordance with the provisions of IAS 16 for that model. Transfers to and from the investment property category are made if and only if there is a change in its use.

Transfersbetweencategoriesdonotchangethecarryingamountof thepropertytransferred, nor do they change the cost of that property for the purpose of assessment or disclosure.

NOTE 3 - ACCOUNTING AND EVALUATION PRINCIPLES (continued)

Investment property depreciates by to the same rules as property, plant and equipment.

In the category of financial fixed assets, the following are recorded:

Shares held in affiliated companies;
Other non-current securities;
Long-termloansandtheinterestthereon.Thiscategoryincludesamountsgrantedtothird parties under contracts on which interest is charged in accordance with the law;
Other fixed receivables and related interest. This category includes collaterals, deposits and securities deposited with third parties, and claims relating to leasing contracts.

Financial fixedassets areclassifiedon initialrecognitionas subsequentlyvalued atamortised cost, fair value through other comprehensive income (OCI) or fair value through profit or loss, as appropriate.

Theclassificationof financialassetsoninitialrecognitiondependsonthecontractual cash flow characteristics of the financial asset and the entity's business model for managing them.

• Accounting policies for inventory items

The entry of inventories is recorded in the accounts at the date of transfer of the risks and benefits. Thecalculationof thosestockswhicharenotusuallyfungibleandof thosegoods,productsor services is determined by specifically identifying their individual costs. Whenstocksandfungibleassetsaredisposedof, theyarevaluedandenteredin theaccounts using the FIFO method.

Periodically, the Company's management approves the level of normal technological losses. Inventory accounting is kept quantitatively and by value, using the perpetual inventory method. Value adjustments are made for current assets in the form of inventories for each reporting period, basedonthematurityof theinventories, thefindingsof theinventorycommitteesand/orprofit centre managers, in order to present the assets at the lower of cost and net realizable value.

• Accounting policies on company liabilities

The Company's liabilities are recorded in the accounts payable. Accounts payable to suppliers and other payables shall be kept by category and by individual natural or legal person. Income tax payable/receivable is recognised as a liability to the extent of the amount unpaid. Excise dutiesandspecialfundsincludedin pricesor tariffsareenteredin theaccountsonthe corresponding accounts payable without going through the revenue and expenditure accounts. Operationswhichcannotberecordedseparatelyin thecorrespondingaccountsandforwhich furtherclarificationis requiredarerecordedina separateaccount473"Settlement ofoperations awaiting clarification".

Foreign currency payables are recorded in the accounts in both RON and foreign currency.

NOTE 3 - ACCOUNTING AND EVALUATION PRINCIPLES (continued)

A liability is classified as a short-term liability, also referred to as a current liability, when:

o it is expected to be settled in the normal course of the Company's operating cycle, or o it is due within 12 months after the balance sheet date.

All other liabilities are classified as long-term liabilities.

Liabilities that are due in more than 12 months are long-term liabilities. Theyarealsoconsideredlong-terminterest-bearing liabilitiesevenwhentheyareduewithin12 months of the date of the financial statements if:

a) the original term was for a period longer than 12 months; and

b) thereis a refinancingorreschedulingagreement thatis enteredintobeforethedateof the financial statements.

• Accounting policies for company receivables

Receivables include:

tradereceivables, whichareamountsduefromcustomersfor goodssoldor services rendered in the normal course of business;
trade notes to be collected, instruments of third parties;
amounts due from employees or affiliated companies;
advance payments to suppliers of trial assets, goods and services;
receivables related to staff and the State budget.

Receivablesarerecordedon an accrualbasis,in accordancewiththelegalor contractual provisions.

Customeraccountsarekeptbycategory(internalcustomers, servicesandproducts,andexternal customers, services and products) and by individual natural or legal person. Receivablesin foreigncurrency,resultingfromtheCompany'stransactions, arerecordedin the accounts both in lei and in foreign currency.

Transactionsinforeigncurrencyareinitiallyrecordedattheexchangeratecommunicatedbythe National Bank of Romania on the date of the transaction.

Thederecognitionof time-barreddebtsshallbecarriedoutonlyafteralllegalstepshavebeen taken to settle them.

Doubtfulreceivablesshallbe enteredseparatelyin the accountsin account4118Doubtful customers when the due date laid down in the contract has been exceeded by more than 30 days or a dispute has arisen with the customer.

Intheannualfinancialstatements, receivablesarevaluedandstatedattheirprobablecollectible amount.

Whena receivablefroma customerhasnotbeencollectedin full whendueas statedin the contract,anallowanceforimpairment isrecordedatthetimesandpercentagesapprovedby the Board of Directors in the Accounting Policy Manual.

• Accounting policies on revenue recognition

Revenueis recognisedin theCompany'sprofitor lossstatementwhenan increasein future economicbenefitsassociatedwithan increasein an assetor a decreasein a liabilitycanbe measured reliably. As a result, revenue recognition occurs simultaneously with the recognition of an increase in assets or a decrease in liabilities.

NOTE 3 - ACCOUNTING AND EVALUATION PRINCIPLES (continued)

Revenueincludesbothamountsreceivedor receivableon ownaccountandgainsfromany source.

Revenue is classified as follows:

Revenue from operations;

Financial revenue;

Revenue is recognised on an accrual basis.

Syntheticrevenueaccountsaredevelopedon analyticalaccounts,accordingto theaccounting regulationsin force(generalchartof accounts)andaccordingto theCompany'sownneeds, approved by the Company's top management.

Revenueis valuedatthefairvalueof theconsiderationreceivedorreceivable. Salesrevenueis diminished for returns, trade discounts and other similar rebates.

Revenue from operations includes:

revenuefromsalesrelatedto contractswithcustomers(of goods,services,merchandise, residual products);
income related to the cost of stocks of products;
income from the production of fixed assets;
incomefromthe reversalof assetadjustmentsor fromthe reductionor reversalof provisions;
other revenue from operations.

Revenue from contracts with customers irecognised inaccordance with IFRS 15 'Revenue from contracts with customers'. A customer is a party that has entered into a contract with the Company to obtain goods and services arising from the Company's regular activities.

Revenuerecognitiondescribesthetransferofcontrolovergoodsandservicestocustomers, and the measurement of revenuereflectstheconsiderationto whichtheCompanyexpectsto be entitled in exchange for those goods and services.

Such control includes the ability to prevent other entities from determining the use of the asset and deriving benefit from it. The benefits of an asset are the potential cash flows that can be obtained directly or indirectly from using, selling or holding the asset.

Revenue recognition is the result of going through the following five phases:

Identifying the contract with a customer

The Company recognises a contract with a customer only if the following conditions are met:

a) the parties have approved the contract and agree to honour their obligations,
b) theCompanycanidentifytherightsof eachpartywithrespecttothegoodsandservices transferred,
c) the Company can identify the terms of payment for the goods and services transferred,
d) thecontracthascommercial substance(i.e.it changestherisk,timingandamountof the entity's future cash flows)

NOTE 3 - ACCOUNTING AND EVALUATION PRINCIPLES (continued)

e) it is probablethattheCompanywill collecttheconsiderationto whichit is entitledin exchangeforthegoodsandservicestransferredtothecustomer.Thisinvolvesassessing the customer's ability and intention to pay the consideration when due.
1. Identification of obligations arising from the contract

A contractincludesobligationsto transfergoodsor servicesto a customer.An obligationto transfer a good or service is separable if it satisfies all of the following conditions:

(a) the customer can benefit from the transferred good or service separately or in combination with other resources at its disposal; and
(b) the entity's promise to transfer the good or service to the customer is identifiable separately from other promises in the contract.

TheCompanyhasnotidentifiedanytypesof contractswithseparableobligations. Inthecaseof performanceguarantees, theyarenotanadditionalserviceandas suchtheydo notrepresenta separate obligation.

Determination of the transaction price

TheCompanymustdeterminetheamountof considerationto whichit expectstobeentitledin exchangeforthegoodsandservicespromisedin thecontractin ordertorecogniserevenue.The price may be a fixed amount or it may vary due to discounts or other similar items.

Thepriceof theCompany'ssalestransactionsis notadjustedfortheeffectof thetimevalueof moneyastheCompanydoesnothaveanysupplycontractswithasettlement terminexcessof one year or containing a significant financing component.

For contracts entered into by the Company, the price is negotiated and remains firm. Renegotiated contractamendmentsareeffectiveprospectivelyfromthedateof renegotiationfor subsequent orders,consideringthat the performanceobligationis separateand not partof a single performance obligation that is partially fulfilled at the date of the contract amendment.

Allocation of the transaction price between the obligations generated by the contract

If a contractcontainsseveralseparateobligations, theCompanyallocatesthetransactionpriceto eachobligationin proportionto its individualprice.The bestrecordfor thepriceof each individual obligation is the price for which the good or service is sold separately by the entity.

Revenue recognition at a specific point in time or as the Company fulfils the obligation

A contractobligationis metwhenthecontrolof thegoodsor servicesis transferredto the customer.Thecontrolis theabilityto decidetheuseandobtainthemajorityof theremaining benefits of the transferred good or service.

Thestandardestablisheshowtherevenueis tobedetermined, inthatit mustberecognisedata specificpointin timeorovera periodof time,whichappliestoboththesaleof goodsandthe rendering of services.

An obligationis metandrevenueis recognisedovera periodof timeif at leastoneof the conditions below is met:

NOTE 3 - ACCOUNTING AND EVALUATION PRINCIPLES (continued)

thecustomerreceivesandconsumesthebenefitsof theserviceperformedbytheentityas the entity performs,
theperformancebytheentitycreatesorimprovesanasset(forexample,workinprogress) that the customer controls as the asset is created or improved,
theentity'sperformancedoesnotcreateanassetwithanalternativeusefortheentityand the entity has an enforceable right to payment for performance to date.

If aperformanceobligationisnotfulfilledovertime,anentityfulfilstheperformanceobligation at a specific point in time.

If theCompanyreasonablyexpectsthattheeffectsonthefinancialstatementsfora portfolioof customerswithsimilarcharacteristics willnotbemateriallydifferentfromthosedeterminedby applying the standard to individual contracts within that portfolio, then the contracts are analysed together.

Thetimingof revenuerecognitionresultsfromcorrelatingthespecificcontractprovisionswith the provisions of IFRS 15.

Rental income

Rental income from investment property is recognised in the profit and loss account on a straightline basis over the term of the lease in accordance with IFRS 16.

Financeincomecomprisesinterestincome,foreignexchangeincome,dividendincomeandother finance income.

Interestincomeis recognisedin theincomestatementon an accrualbasisusingtheeffective interest method. Interest income arising on a financial asset is recognised when it is likely that an economicbenefitwill be obtainedby theCompanyandwhenthatbenefitcanbe measured accurately.

Dividend income from investments is recognised when the shareholder'sight to receive payment has beenestablished. The Companyrecords dividend icome onagross basisincludingdividend tax (when applicable), which is recognised as a current expense.

• Accounting policies on provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) asa resultof a pastevent,it is likelythattheCompanywillberequiredtosettletheobligationanda reliable estimate can be made of the amount of the obligation.

Theamountrecognisedasaprovisionisthebestestimateof theconsiderationrequiredtosettle the presentobligationat the end of the reportingperiod,takinginto accountthe risksand uncertainties associated with the obligation.

Provisionsareaccountedforbytype,dependingonthenature,purposeorobjectforwhichthey are set aside.

Provisions for guarantees

The Company sets aside provisions for warranties when products or services covered by warranty are sold.

NOTE 3 - ACCOUNTING AND EVALUATION PRINCIPLES (continued)

The value of the provision for warranties granted is based on historical, contractual or reasonable estimates for products/services first performed in the Company.

Provisions for risks and charges

Whenrisksandexpensesareidentifiedwhicharelikelytobeincurredasa resultof eventsthat haveoccurredor arein progressandthepurposeof whichis preciselydeterminedbutthe realisation of which is uncertain, the Company covers these risks by making provisions. Provisions for risksandchargesaresetasidefor itemssuchas risksspecificto theaviation industry, litigation, fines, penalties, indemnities, damages and other uncertain liabilities.

Provisions for the decommissioning of tangible fixed assets

On initialrecognitionof anitemof property,plantandequipment, anestimateis madeof the costs of dismantling, removing the item and restoring the site where it is located as a consequence of using the item over a period of time.

Thesecostsarereflectedby settingasidea provision,whichis recognisedin theprofitandloss account over the life of the item of property, plant and equipment by inclusion in the depreciation expense.

The revision of the estimates for the provision for decommissioning and restoration is determined by the annual review of the dismantling costs. The Company's committee of experts appointed by internaldecisionperiodicallyreviewswhetherthe initialestimatesof dismantlingcostsare adequate.

Provisions for employee benefits

Provisionsarerecognizedfor employeebenefitsgrantedin accordancewiththeapplicable Collective Labour Agreement, if and only if:

theentityhasalegalandconstructiveobligationtomakesuchpaymentsasaresultofpast events; and
a reliable estimate of the obligation can be made.

Provisions are reviewed at the end of each reporting period to reflect the best current estimate.

• Accounting policies for subsidies and other non-reimbursable funds Subsidies distinctly feature:

-government subsidies;
non-reimbursable loans as subsidies;

-other amounts received as subsidies.

Subsidiesarerecognisedat theirapprovedamount.Subsidiesreceivedin theformof nonmonetary assets are recognised at fair value.

Governmentsubsidiesareinitiallyrecognisedas deferredrevenueat fairvaluewhenthereis reasonableassurancethatit willbereceivedandtheCompanywillcomplywiththeconditions associated with the subsidy.

SubsidiesthatcompensatetheCompanyfor expensesincurredarerecognisedin theincome statementona systematicbasisin thesameperiodsin whichexpensesarerecognised. Subsidies that compensate the Company for the cost of an asset are recognised inthe income statement on a systematic basis over the life of the asset.

Subsidiesrelatedto incomearerecognised, on a systematicbasis,as incomein theperiods corresponding to the related expenses that these subsidies are intended to compensate.

NOTE 3 - ACCOUNTING AND EVALUATION PRINCIPLES (continued)

If subsidiesarereceivedina periodinrelationtoexpenditurethathasnotyetbeenincurred, the subsidiesreceivedarenotincomeof thatcurrentperiod.Theyarerecognisedin theaccountsas deferredincomeandreversedtotheprofitandlossaccountastheexpensestheycompensateare made.

• Accounting policies regarding the production of goods and services

applicablelegal to management The organizingof AerostarSA's managementaccountingis basedon the provisionsand the manualof work proceduresand instructionsspecific accounting, adapted to the specific activity of the Company.

The object of management accounting consists in:

the collection of direct, indirect and ancillary costs according to their nature;
the allocation of indirect costs;
settlement of direct and indirect costs.

Themainpurposeof management accountingis toestablishtheresultbyproductionorservice order and by organisational structure.

Accordingtotheaccountingregulations, thecostofgoods,worksandservicesperformeddoes not includethefollowing itemswhichare recognisedas expenses of the periodin which theyare incurred:

(a)lossesof materials,labouror otherproductioncostsrelatingto scrapandsub-activity costs;

(b) general administrative expense.

The calculation method used in Aerostar SA is the job order method.

This methodis suitablefor individualandseriesproduction.The objectof recordingand calculating costs under this method is the order placed for a given quantity (batch) of products. Productioncostsarecollectedforeachindividualorderdirectly(directorders)orby allocation (indirect orders).

Theactualcostperunitof productis calculateduponcompletionof theorderby dividingthe productioncostscollectedontherelatedorderby thequantityof productsmanufacturedonthat order.

Orders are released at the planned price, as appropriate.

In thecaseof ordersrelatedto exportsales,thepriceis expressedin lei by convertingthe currency at the budgeted exchange rate.

In theapplicationof accountingpolicies,theCompanyissuesworkprocedures, ordersand instructions, approved by the executive management.

NOTE 4 – TRANSACTIONS IN FOREIGN CURRENCIES

AEROSTAR considerstheRomanianLEUasthefunctional currencyandthefinancialstatements are presented in thousand LEI.

The currency transactions are recorded at the exchange rate of the functional currency on the date of the transaction.

Onthedateof theFinancialPositionStatement, theassetsandfinancialliabilitiesdenominatedin foreign currency are evaluated in the functional currency using the exchange rate, communicated by the Romanian National Bank, valid at the end of the financial year:

Currency	31.12.2024 AVERAGE EXCHANGE RATE		31.12.2023	AVERAGE EXCHANGE
		YEAR 2024		YEAR 2023
1 EUR (Euro)	4,9741 lei	4,9746 lei	4,9746 lei	4,9465 lei
1 USD (American Dollar)	4,7768 lei	4,5984 lei	4,4958 lei	4,5743 lei
1 GBP (British pound)	5,9951 lei	5,8769 lei	5,7225 lei	5,6869 lei

The favourable and unfavourable exchange rate differences resulting from the settlement of the assets andfinancialiabilitiesdenominatedin foreigncurrencyarerecognizedin theProfitor Loss Statement for the financial year in which they occur.

Considering that 79% of the turnover registered inthe reporting period is denominated in USD and EUR, while a significant part of the operating costs is denominated in LEI, the foreign exchange rate variationswillaffectbothitsnetincomeanditsfinancialpositionasexpressedin thefunctional currency.

In thereportingperiod,thenetcurrencyexposureresultedas a differencebetweentheamounts collectedfromthefinancialassetsandthepaymentof thefinancialliabilitiesdenominatedin that currency is as follows:

YEAR 2024	K EUR	K USD	KGBP
Amounts collected from financial assets	34.692	64.757
Payments of financial liabilities	(15.280)	(35.189)	(892)
Foreign exchange net exposure	19.412	29.568	(892)

AEROSTARhasoptednot to accesscurrencyhedgingproducts(options,forwards)dueto the relatively high initial costs and the possibility of losing opportunities in case of depreciation of RON against the main currencies (USD, EUR).

In 2024,AEROSTARrecordedgainsof 2.179thousandLEI fromexchangeratedifferences, determinedby theaveragedepreciationof theLEUagainstheUSDby 2,30%comparedto the beginning of the year.

Net value

NOTE 5 - INTANGIBLE ASSETS: reporting period 31 December 2024

		Values on 31 December 2024
	Gross amount	Accumulated depreciation	Net value	Gross amount
Licences	8.620	(7.299)	1.321
Other intangible assets (software)	1.340	(873)	467
Total	9.960	(8.172)	1.788

Net book value on 31.12.2024 and transactions during the period:

	Net value on 1 January 2024	Entries at gross value	Depreciation during the period
Licences	1.227	884	(790)
Other intangible assets	581	146	(260)
Total	1.808	1.030	(1.051)

Net value

NOTE 5 - INTANGIBLE ASSETS: reporting period 31 December 2024 (continued) COMPARATIVE FIGURES - INTANGIBLE ASSETS: reporting period 31 December 2023

		Values on 31 December 2023
	Gross amount	Accumulated depreciation	Net value	Gross amount
Licences	7.754	(6.527)	1.227
Other intangible assets (software)	1.194	(613)	581
Total	8.948	(7.140)	1.808

Net book value on 31.12.2023 and transactions during the period:

	Net value on 1 January 2023	Entries at gross value	Depreciation during the period
Licences	838	946	(557)
Other intangible assets	21	697	(137)
Total	859	1.643	(694)

NOTE 5 - INTANGIBLE ASSETS: reporting period 31 December 2024 (continued)

The category of intangible assets includes the following classes of assets of similar nature and use:

Licences
Other intangible assets

The software programmes are registered under other intangible assets.

Theusefulifetimesfortheintangibleassetsareestablishedinyears,basedontheperiodof thecontractortheservicelife,asthecasemaybe.The useful lifetime of the licenses and software purchased or generated internally is 3 years.

Depreciation expenses are recognised in the income statement using the linear method of calculation.

The intangible assets in the balance sheet account as on 31.12.2024 are not depreciated and no adjustments were made for the depreciation thereof.

When determining the gross accounting value of the intangible assets, the company uses the historical cost method.

The value of the completely amortized software licenses on 31 December 2024 and which are still in use is 5.978 thousand lei.

All the intangible assets in balance on 31 December 2024 are owned by Aerostar S.A..

The entries of intangible assets were made by: optimization of production management IT system - version 3 purchase of software licences 1.030 thousand lei 146 thousand lei 884 thousand lei

During the reporting period there were no licence entries generated internally or acquired through business combinations.

During the reporting period there were no assets classified as held for sale in accordance with IFRS 5.

AEROSTAR S.A. BACĂU NOTES TO THE COMPANY FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024 (unless specified otherwise, all amounts are stated in thousand lei ) NOTE 6 – PROPERTY, PLANT AND EQUIPMENT: reporting period 31 December 2024

		Values on 31 December 2024
	Gross value	Accumulated amortization	Net value	Gross value
Land	31.171	-	31.171	30.894
Constructions	101.423	(51.316)	50.107	98.349
Technological equipment and vehicles	251.321	(175.987)	75.334	231.120
Other equipment and office equipment	3.886	(2.433)	1.453
Property, plant and equipment under construction	1.680	-	1.680
Total tangible fixed assets	389.481	(229.736)	159.745	364.925
Investment property	12.954	(6.356)	6.598	12.749
Total general	402.435	(236.092)	166.343	377.674

Net book value on 31.12.2024 and transactions during the period:

	Net value on 1 January 2024	Gross value inputs (reclassifications)	Gross value outputs (reclassifications)
Land	30.894	277
Constructions	52.742	3.286	(212)
Technological equipment and vehicles	73.404	21.028	(827)
Other equipment and office equipment	1.720	51
Investment property	7.296	205
Property, plant and equipment under construction	727	25.594	(24.641)
Total	166.783	50.441	(25.680)

Net value on 31 December 2024

Net value

NOTE 6 – PROPERTY, PLANT AND EQUIPMENT (continued) : reporting period 31 December 2024 COMPARATIVE FIGURES - PROPERTY, PLANT AND EQUIPMENT: reporting period 31 December 2023

		Values on31 December 2023
	Gross value	Accumulated amortization	Net value		Gross value
Land	30.894	-	30.894		29.534
Constructions	98.349	(45.607)	52.742		96.634
Technological equipment and vehicles	231.120	(157.716)	73.404		202.640
Other equipment and office equipment	3.835	(2.115)	1.720		3.833
Property, plant and equipment under construction	727	-	727		15.179
Total tangible fixed assets364.925		(205.438)	159.487		347.820
Investment property	12.749	(5.453)	7.296		11.275
Total	377.674	(210.891)	166.783		359.095
Net book value on 31.12.2023 and transactions during the period:
		Net value on 1 January 2023	Gross value inputs	Gross value outputs
Land		29.534	1.360		-
Constructions		57.206	1.715		-
Technological equipment and vehicles		62.217	29.203		(723)
Other equipment and office equipment		2.040	8		(6)
Investment property		6.514	1.474		-
Property, plant and equipment under construction		15.179	17.686		(32.138)
Total General		172.690	51.446		(32.867)

NOTE 6 – PROPERTY, PLANT AND EQUIPMENT (continued)

Property,plantandequipmentarevaluedat acquisitionor productioncost lessaccumulated depreciation and impairment losses.

These items of property, plant and equipment are amortized by using the linear method.

Amortization expenses are recognized in the profit and loss statement.

The following useful lifetimes are assumed for the property, plant and equipment:

constructions 30-50years
technological equipment 2-25years
vehicles 4-18years
other property, plant and equipment 2-18years
investment property 25-50 years

The useful lifetimes are established by committees consisting of specialists from the Company. The useful lifetimes of the property, plant and equipment are stipulated by the fiscal legislation on assets.

TheCompanydidnotpurchaseassetsfrombusinesscombinations, nordidit classifyassetsfor future sale.

Theinvestmentpropertycontainsa numberof 13realestate– buildingsthatarerentedto third parties based on renting contracts.

The value of rental income for this category of fixed assets was 2.968 thousand lei.

Onthedateof transitiontoIFRS,theCompanyestimatedandincludedinthecostof theproperty, plant and equipment the estimated costs for their decommissioning at the end of a useful lifetime.

These costs were reflected in the setting aside of a provision, which is recorded in the profit and loss accountthroughoutthe lifetimeof the property,plantand equipment,by inclusionin the amortization expense.

This expense is not tax deductible.

The amortization of an asset begins when the asset is available for use and ends on the day when the asset is reclassified in another category or when it is derecognized.

The amortization does not end when the asset is not in use.

Thelandandbuildingsareseparableassets,andtheiraccountsarekeptseparately, evenwhenthey are acquired together.

The land has an unlimited useful life and therefore does not depreciate. ThevalueoflandownedbyAerostarSA ispresentedatacquisitioncost,i.e.theassumedcostthat was recorded at the date of transition to IFRS.

Inaccordancewiththeprovisionsof IAS36- Impairment ofassets,theCompanyproceededtothe identificationof anysignsof impairmentof property,plantandequipment, takingintoaccountthe external and internal sources of information.

Internal sources of information:

Theeconomicperformanceof theassetsis good,allfixedassetsthatarein operationbenefithe Company.

NOTE 6 – PROPERTY, PLANT AND EQUIPMENT (continued)

External source of information:

Theindicatorthatprovidesinformationregardingtheinvestors'interestinthecompanieslistedon the capital market is the market capitalization to equity ratio (MBR).

indicatorMBR-Market to book ratio Stock exchange capitalization/ company equity 31.12.2024 2,08

The over-unit value of the MBR indicator is obtained by companies well-listed on the capital market and that are of interest to the investors.

Tangiblefixedassetsoutstandingon 31.12.2024arenotimpairedandno significantimpairment indicators have been identified.

The gross accounting value of the fully amortized property, plant and equipment still in operation on 31 December 2024 is 98.990 thousand lei. On 31.12.2024 no mortgages were set on the fixed assets owned by Aerostar S.A.

Entries of property, plant and equipment, achieved by:	50.441 k lei
commissioning of technical equipment, hardware equipment, measuring
and control equipment	21.079 k lei
building modernization work	3.286 k lei

land purchase	277 k lei

property, plant and equipment under construction during the period 25.594 k lei

reclassification of the building into investment property following rental 205 k lei

Outflows of property, plant and equipment, achieved by: transfer of property, plant and equipment as a result of the commissioning thereof 25.680 k l ei 24.641 k lei

derecognition of property, plant and equipment because the Company no longer expects future economic benefits from their use 834 k lei

reclassification of the building into investment property following rental 205 k lei

Net asset/ share (k lei)

Financial information related to the year 2023

NOTE 7- FIXED FINANCIAL ASSETS

	Shares held in affiliated entities	Other immobilized securities - shares	Other immobilized immobilized securities – receivables – contributions to company assets guarantees
On 1 January 2024	14	57.674	2
Increases/Decreases	-	(11.599)	-
On 31 December 2024	14	46.075	2
On 31.12.2024 the decrease in value related to other fixed assets - shares amounts to (11.599) thousand lei and consists of:
Fair value revaluation of EvergentValue of shares sold between January and
Investments S.A. shares			December 2024
7.890		(19.489)

A) Investments in affiliated entities registered under cost:

10 10 Airpro Consult SRL Bacău- main 100 100% 9, Condorilor Street activity according to CAEN code 7820 Foar SRL Bacău - main 408 51% 4 8 9, Condorilor Street activity according to CAEN code 7739 TOTAL x x x 14 x	Subsidiary name/ Registered head office	CAEN Code	No. of shares/ shares issued	Voting rights (%)	Value of shares held by Aerostar (k lei)	Company's share capital (k lei)

Value of portfolio at purchase price (thousand lei)

46.075 37.964

portfolio at market price (k lei)

NOTE 7- FIXED FINANCIAL ASSETS (continued)

Aerostar's shareholdings in the affiliated companies are recorded at cost. On 31.12.2024, the Company recorded no modifications i.e. no increases/decreases as to the shareholding percentage, maintaining the same influence as in 2023 on the remaining companies in the equity portfolio.

Both companies in which AEROSTAR holds shares are registered in Romania.

B) Investments in equity instruments through other elements of global result:

Issuer's name Registered head office	CAEN code	No. of shares	Symbol	alue of pri V ce /share on 31.12.2024 (lei)
Evergent Investments S.A.- main activity
94C, Pictor Aman Street, BacăuCAEN code	according to 6499	31.342.883EVER		1,4700

On 31 December2024,thecompanyheld31.342.883sharesof thecompanyEvergentInvestmentsS.A, listedat theBucharestStock Exchange.Aerostarecordsthesharesheldat fairvaluethroughothercomprehensiveincome,in accordancewithIFRS9 "Financial Instruments". The Company has used the irrevocable option to designate these equity instruments at fair value through other comprehensive income as these financial assets are held both for the collection of dividends and for gains on their sale and not for trading. The gain or loss on these equity instruments is recognised in other comprehensive income, except for the dividend income.

C) Cash contribution to the establishment of the initial patrimony of the association "Cluster of education for sustainable development C-EDD "

The associationwasestablishedvoluntarilyby thefoundingmembers,operatingas a Romanianlegalpersonof privatelaw without patrimonial purpose.Theassociationis non-governmental, non-political, non-profitandindependent, notsubordinatedto anyotherlegal person.

The purpose of the Association isto develop and implement effective mechanisms for public-private dialogue in the field of education, toact as a space for dialogue and collaboration between the main actors involved in education, to elevate the quality of educational processes and to connectlifelonglearningwith the economicenvironmentin orderto provideit with qualifiedhumanresourcesfor sustainable development. Thevalueof AEROSTAR'scontributiontotheassetsof the"Clusterof EducationforSustainableDevelopmentC-EDD"is 2.500 lei.

NOTE 8 - TRADE RECEIVABLES

	31 December	31 December
	2024	2023
TRADE RECEIVABLES, of which:
Customers :	96.855	76.785
Domestic customers	31.782	6.694
Foreign customers	65.073	70.091
Doubtful customers	219	445
Adjustments for impairment of receivables	(197)	(267)
Suppliers – debtors	5.926	7.926
TOTAL TRADE RECEIVABLES	102.803	84.889

In accordance with the provisions of the Accounting Policies Manual, to cover the non-recovery risk of theamountsthatrepresent thedoubtfultradereceivables, thecompanyregistersadjustmentsforthe depreciation of the doubtful customers as follows:

50%ofthevalueofthereceivablesnotcollectedontimeif theduedateisbetween30daysand 180 days. On 31 December 2024, the company registered adjustments for depreciation of this nature in the amount of 110 thousand lei;
100%of theamountof thereceivablesnotcollectedontime,if thedelayismorethan180 days. On 31 December 2024, the company had no impairment adjustments of this nature.

Whendeterminingtherecoverabilityof a tradereceivable,thechangesconsideredwerethose occurredin thecustomer's creditratingfromthetimewhenthecreditwasgrantedtill thedateof reporting.

Supplier-debtors have a deadline for settlement in 2025.

Thereceivablesdenominatedin foreigncurrencywereevaluatedat themarketexchangerate communicated by the National Bank of Romania valid for the end of December 2024.

Thefavourableandunfavourableexchangeratedifferencesbetweentheexchangemarketrate,for which are accounted the receivables in currenc y, and the market exchange rate communicated by the NationalBankof Romaniaavailablefor theendof December2024wererecordedin therelated income or expense account.

NOTE 9 – OTHER RECEIVABLES

	31 December 2024	31 December 2023
Receivables related to manpower and similar accounts	63
Receivables related to the budget of social insurance and the state budget, of which:	2.945	3.484
VAT to recover	380	1.206
Non-exigible VAT Amounts to recover from the National Health System (allowances on medical leaves)	109 2.360	163 1.993
Amounts in the form of subsidies	64
Excise duties to recover for the fuel used	10
Other receivables in relation to the local budget Other receivables in relation to the social security and state budget	8 14
Interest receivable from bank deposits	3.665	1.487
Sundry debtors	1.699	745
Impairment adjustments for receivables - sundry debtors	(403)	(518)

TOTAL OTHER RECEIVABLES	7.969	5.286

Notes:

Otherreceivablesin relationto thesocialsecuritybudget,statebudgetandlocalbudget

represent amounts resulting from the submission of rectifying statements; - Interestreceivablerelatestobankdepositsheldbythecompanyattheendof thereporting period;

Of the total other receivables, a share of 30% is represented by the amount of 2.360 thousand lei, on account of the amounts settled but not collected from the Health House.

NOTE 10 - INVENTORIES	31 December 2024	31 December 2023
of which:
Raw material *	70.654	72.098
Consumables **	93.135	71.738
Other materials	37	68
Semi-finished products	4	32
Packaging	36	45
Finished products	44.580	27.768
Products and services in progress	76.215	56.592
Gross value of the inventory (unadjusted)	284.661	228.341
Value of impairment adjustments	78.456	67.299
Net (adjusted) value of inventories	206.205	161.042

ADJUSTMENTS FOR IMPAIRMENT OF INVENTORIES

	31 December 2024	Increases/ Setups	Decreases/ Reruns	31 December
Total adjustments	78.456	23.811	12.654	67.299
Adjustmentsforimpairmentof raw material	41.737	7.647	1.465	35.555
Adjustmentsforimpairmentof consumables	31.500	9.069	5.030	27.461
Adjustmentsforimpairmentof semi-finished products	4	-	28
Adjustmentsforimpairmentof finished products	338	614	2.438	2.162
Adjustments for impairment of production in progress	4.877	6.481	3.693	2.089

The inventories are assessed at the lowest value between the cost and the net realisable value. Thenetrealisablevalueis theestimatedsalepriceforinventoriesminusall estimatedcostsfor completion and the estimated costs required for the sale.

The cost of inventories includes: acquisition costs, conversion costs as well as other costs incurred to bring inventories to the state and in the place where they are currently found. Value adjustments are made regularly based on the findings of the inventory commissions and/ or the module managers, in order to present them at the lowest value between the cost and the net realisable value.

Within the Company, the goods considered to be depreciated are those that are older than the storage period established by internal decision of the Board of Directors. In accordance with the Accounting Policy Manual, various adjustments are set up at Aerostar SA for the inventory depreciation, as follows:

NOTE 10 – INVENTORIES (continued)

for rawmaterial,consumables, semi-finishedproductsandspareparts,differentperiodsare established, for each profit centre;
fortheinventoriesoffinishedproducts, depreciationadjustmentsaresetupforeachperiod,as follows:
- a) 100% of the value thereof, for inventories of this nature that do not rely on contracts with the customers;
- b) in variablepercentages, asagreedwiththeprofitcentresinvolved,for theinventoriesof unfinished products not delivered in due time as per the contractual provisions.

Thetotalvalueofinventoriesrecognizedasanexpenseduringtheperiodis264.474thousandlei, which consists of:

249.504 thousand lei representing the value of expenditure on stocks of materials;
13.451 thousand lei representing the value of expenditure relating to the consumption of water, gas and electricity;
1.519 thousand lei representing the value of expenditure on non-stocked materials.

Aerostar S.A. holds stocks of finished (safety) products at the levels agreed in the contracts with its customers.

Aerostar S.A. has no pledged stocks.

NOTE 11 – CASH AND CASH EQUIVALENTS

The cash contains:

cash available at the AEROSTAR cash desk;
sight deposits held at banks (current accounts at banks).

The cash equivalents consist in:

term deposits held at banks;
cheques and commercial papers (promissory notes) deposited at banks for collection.

At the end of the reporting period the cash and cash equivalents consist in:

	31.12.2024	31.12.2023
Cash at the cash desk	30	36
Sight deposits held at banks	31.170	34.053
Time deposits held at banks	229.203	211.703
Cash and cash equivalents	260.403	245.792

There are no restrictions on the current bank accounts and deposits held by banks.

ThevalueoftheLineofCreditusableasanoverdraft, availableforthefutureoperatingactivity, is 2.500 THOUSAND USD (the equivalent of 11.492 thousand lei). The Line of Credit was not used during the reporting period.

AEROSTAR's policy is to deposit the cash corresponding to the amount of the provisions set aside. The balance of provisions on December 31, 2024 is 85.108 thousand lei.

Term deposits are set up for short terms (less than 6 months), as AEROSTAR prefers to have easyaccesstosavings.Asaresult,otheralternatives forsavingsurpluscashsuchasforexample investments in investment funds are not favoured by AEROSTAR due to the investment risks attached. Thus,in theshortterm,theseinvestmentsmayexperiencewidefluctuationsdueto various conjunctural factors.

AEROSTAR'soptingto setup onlyshort-termbankdepositsis mainlydueto theglobal political and economic uncertainties, the deteriorationf supply chains, given that at any time events may occur that may require purchases of raw materials and safety materials.

NOTE 12 – COMPANY EQUITY

Thecompanyequityon31December2024is620.334thousandlei.Thenetincreaseof thecompany equity in 2024 compared to the end of the year 2023 amounted to 68.377 thousand lei.

Changes in equity elements in 2024 compared to 2023:

The share capital remained unchanged:

On31December2024,thesharecapitalof AEROSTARSA Bacauis 48.728.784lei,dividedinto 152.277.450 shares having a nominal value of 0,32 lei.

The reserves increased by 57.653 thousand lei:

o Anincreaseby33.125thousandleiasa resultof thedistributionof theprofitmadein2023 to the destinations decided by the shareholders in the OGMS meeting of 18 April 2024;
o An increase by 18.731 thousand lei on account of the distribution of the profit made in 2024 for reserves from fiscal facilities;
o An increaseby 7.890thousandlei dueto therevaluationat fairvalueof theEvergent Investments S.A. shares;
o A decreaseby 2.449thousandlei arisingfromthetransferto retainedearningsof the revaluationdifferencesat fair valueof theequityinstrumentsrecognisedthroughother comprehensive income following the sale;
o anincreaseby 356thousandlei dueto thetransferto reservesof theretainedearnings representing the surplus made from the revaluation reserves.

Otherequityelementsdecreasedby theamountof3.964thousandleionaccountof the deferred income tax recognized in the company equity.

The result carried forward increased by 2.797 thousand lei as follows:

o An increase by 225 thousand lei on account of the deferred income tax recognised on equity; o An increaseby 2.928thousandlei representingthenetgainfromthesaleof equity instruments recognised through other comprehensive income;

o A decreaseby 356thousandlei dueto thetransferto reservesof theretainedearnings representing the surplus made from revaluation reserves.

Thebalanceof theretainedearningsaccounton 31 December2024is 54.374thousandlei, consisting of:

o Retainedearningsarisingfromtheuse,atthedateof transitiontoIFRS,of thefairvalueas presumed cost = 26.238 thousand lei;
o Retainedearningsrepresentingthegainfromrevaluationreserves,capitalisedagainsthe depreciation of tangible fixed assets = RON 24.408 thousand;
o Netrealisedgainonthesaleof equityinstrumentsrecognisedthroughothercomprehensive income = 3.728 thousand lei.

The result for the period was a profit in the amount of 95.725 thousand lei.

NOTE 13 - PROVISIONS

		Reductions/ Increases/
	31 December 2023	Set-up/ Reclassification of provisions	Reruns/Differences Reclassifica- from re- tions ofevaluation 2024 provisions
Total provisions	102.574	43.792	61.626	368	85.108
Provisions for bonds granted to customers	47.368	29.528	42.540	370	34.726
Provisions for decommissioning property, plant and equipment	16.447	21	2	-	16.466
Provisions for the employees' benefits	8.252	9.246	8.252	-	9.246
Provisions for litigation	224	-	224	-
Other provisions	30.283	4.997	10.608	(2)	24.670

Long-term provisions	55.511	6.323	17.967	(1)	43.866
Provisions for bonds granted to customers	13.790	6.302	12.366	-	7.726
Provisions for decommissioning property, plant and equipment	16.447	21	2	-	16.466
Other provisions	25.274	-	5.599	(1)	19.674

Short-term provisions	47.063	37.469	43.659	369	41.242
Provisions for bonds granted to customers	33.578	23.226	30.174	370	27.000
Provisions for customer's benefits8.252		9.246	8.252	-	9.246
Provisions for litigation	224	-	224	-
Other provisions	5.009	4.997	5.009	(1)	4.996

Provisions for customer warranties

Provisions for customer warranties are set up to cover the risk of non-conformity during the warranty period of productsoldandservicesrendered,in accordancewithcontractual provisions.Thewarrantyperiodis usually 24 months.

Provisions for decommissioning of property, plant and equipment

Provisionsforthe decommissioning ofproperty,plantandequipment, mainlybuildings, aresetasidetocover the costsof dismantling, removingitems andrestoring thesiteswhere theyarelocated andareincluded in their cost. The value has been estimated using an annual discount rate of 6,5%.

Provisions for employee benefits

Provisionsforemployee benefits aresetupforbonusesgrantedinaccordancewiththeterms oftheapplicable Collective Labour Agreement (end of financial year bonuses, performance bonuses) and for holiday leaves not taken by employees in the previous year.

NOTE 13 – PROVISIONS (continued)

Other provisions

The category Other provisions contains the provisions set aside for:

coveringrisksspecifictotheaviationindustry,suchas:riskof hiddendefects,riskof detectingquality incidents that can incur damages.
coverage of someexpenses regardingthe Company's obligationstowards A.J.O.F.M.,based onO.U.G. 95/2002;
covering certain risks related to the application by customers of delayed payment penalties and damages associated with the production of aeronautical products;

During the period January - December 2024, the company recorded expenses related to the setting aside of provisions in the amount of 30.484 thousand lei and income related to the write-offs/reductions of provisions in the amount of 47.973 thousand lei, resulting in net income from adjustments to provisions in the amount of 17.489 thousand lei.

During this period, there were reclassifications of long-term provisions recognized in short-term provisions (MDL 13.697 thousand lei).

NOTE 14 - SUBSIDIES FOR INVESTMENTS IN ASSETS

AEROSTAR recognizes as deferred income the subsidies related to assets.

31.12.2024	31.12.2023
2.380	3.028
	1.020
1.550	2.008
-	381
(828)	(1.029)
1.552	2.380
828	830
724	1.550
	830

Thebalancerecordedon31December2024represents subsidiesrelatedtoinvestments infixedassets to be recorded in income as the calculated depreciation is charged to cost.

The subsidiesreceivedin thepreviousyearsfor thefinancingof assetswererelatedto the implementation of 4 investment projects under 4 non-reimbursable financing agreements:

1. Agreementno.210304/22.04.2010: "Expansionof themanufacturingandassemblycapacities for aerostructures destined for civil aviation", executed in the period April 2010 - October 2012, the valueof the subsidyreceivedfromtheMinistryof Economy,Tradeand Business Environment(MECMA)being5.468thousandlei, with556thousandlei remainingto be recorded as revenue;
1. Agreemento.229226/14.06.2012: "Settingupanewmanufacturing capacityfordiversificationf production and export growth", executed between June 2012 and May 2014, the value of the subsidyreceivedfromtheMinistryof Economy,TradeandBusinessEnvironment (MECMA) being 6.011 thousand lei, while the amount of 41 thousand lei remains to be recorded as revenue;
1. Agreementno. 5IM/013/24.03.2015: "Consolidationand sustainabledevelopmentof the machiningandpaintingsectorsthroughhighperformanceinvestments", executedbetween MarchandDecember2015,thevalueof thesubsidyreceivedfromtheMinistryof European Funds (MFE) being 8.299 thousand lei, with 618 thousand lei to be recorded as revenue.
1. Financingcontractno.10/28.02.2023: "EquippingtheAEROSTARTestingLaboratorywith NDTtestingequipment' executedbetweenMarch2023andDecember2023,thevalueof the subsidyreceivedfromtheMinistryof Economybeing381thousandlei,with325thousandlei remaining to be recorded as revenue.

All investment projects in fixed assets were implemented and completed according to the contractual provisions assumed.

NOTE 15 – COMMERCIAL DEBTS

	31 December 2024	31 December
Prepaid amounts collected on customers' account , of which:	9.593	10.540
Lending customers from Romania	19
Lending customers from outside Romania	9.574	12.521
Suppliers , of which:	49.653	35.519
Suppliers of materials and services from Romania	10.863	11.364
Suppliers of materials and services from outside Romania	30.561	19.125
Suppliers – invoices not arrived	6.024	3.846
Suppliers of non-current assets	2.205	1.184
Total commercial debts	59.246	48.059

Prepaymentsreceivedfromexternalcustomersarefor aircraftmaintenanceandrepairwork (94,56%) and other services provided (5,44%).

Nomortgagesweresetupfortherecordedebts.Debtsto suppliersarealsowithincontractual timelines.

Thefavourableorunfavourableexchangeratedifferencesbetweentheexchangerateatwhichthe foreigncurrencydebtsarerecordedandtheexchangeratecommunicatedby theNationalBankof Romaniavalidfor theendof December2024wererecordedin thecorrespondingrevenueor expense accounts.

NOTE 16 - OTHER LIABILITIES

	31 December 31 December
	2024	2023
Other current liabilities , of which:	14.523	11.878
Liabilities related to manpower and similar accounts	4.295	3.656
Liabilities related to social security budget and state budget, of which:	6.828	5.215
– VAT payable	626	185
– social insurance	4.631	3.711
– labour insurance contribution	287	235
– tax on income in the form of salaries	906	719
– contribution for unemployed people with disabilities	207	186
– other taxes	116	133
– other social liabilities	55
Dividends	3.125	2.735
Diverse creditors :	252	257
Bonds received	23
Other long-term liabilities	1.467	1.490

The category "Other long-term liabilities" includes the liability related to the right of use of the land leased for the Maintenance Hangar of Iași.

Thedividendsinbalanceon31December2024,intheamountof 3.125thousandleirepresent the amounts remained in balance for the shareholders who did not show up at the offices of the paying agent CECBankS.A.(thepayingagentdesignatedbyAEROSTAR)andwhichwerenot time-barred.

The Company has no outstanding debts to the state budget, social security budget and local budgets.

NOTE 17 – DEFERRED PROFIT TAX

The deferred tax is determined for the temporary differences occurring between the tax base of the assetsandliabilitiesandtheiraccountingbase.Thedeferredtaxis calculatedata taxrateof 16% applicable to the temporary differences.

TheCompanyestimatedandregisteredliabilitiesregardingthedeferredtaxrelatedtoimmobilized assets(resultingfromdifferencesbetweenaccountingandfiscalvalues,differentusefullifetimes, etc.)andreserves,andit recognizedreceivablesregardingthedeferredtaxrelatedto immobilized securities(assets),inventoriesandtradereceivablesthatwereadjustedfordepreciation,provisionsfor customer bonds, provisions for benefits granted to the employees and other provisions.

Structure of the deferred income tax registered on 31.12.2024:

Liabilities from deferred tax

Liabilitiesrelatedto thedeferredtaxgeneratedby thedifferencesbetweenthe accounting bases (higher) and the fiscal ones (lower) of the non-current assets
1. Liabilities related to the deferred tax concerning legal reserves
25.007 3. Liabilities on deferred tax related to reserves from the fiscal facility
Deferredtaxliabilitiesrelatedto carry-forwardepresentinga surplusfromreevaluation reserves
Liabilities on deferred tax related to non-current assets-securities Total liabilities on deferred tax 28.834

Receivables on deferred tax

Receivables on deferred tax related to other provisions
Receivables on deferred tax related to provisions for bonds granted to customers
Receivables on deferred tax related to provisions for employee benefits

12.553 4. Receivables on deferred tax related to adjustments for depreciation of inventories 5. Receivableson deferredtax relatedto adjustmentsfor depreciationof trade

receivables

Total receivables on deferred tax 20.103

909

1.559

1.298

419 5.556 1.479

Balance - Deferred tax liabilities 8.731

TheCompanydidnotrecognizereceivablesondeferredtaxrelatedtootherprovisionsfortheaviation industry risks due to an uncertainty regarding the fiscal deductibility of the expenses that could arise fromthesettlementof obligationsfromfutureperiods.Therefore, thedifferencesbetweenthetaxbase and the accounting base would be null.

In the period 1 January 2024 – 31 December 2024, the company registered income from the tax on deferred profit in the amount of 6.939 thousand lei and expenses with the tax on deferred profit in the amount of 7.056 thousand lei, with a net impact on the financial performance of - 117 thousand lei..

NOTE 17 – DEFERRED PROFIT TAX (continued)

The tax on deferred profit recognized on the account of equity in the amount of 27.445 thousand lei consists of liabilities on deferred tax in the amount of 27.864 thousand lei, as follows:

deferred tax liabilities related to legal reserves 1.559 thousand lei
deferred tax liabilities related to reserves from tax incentives 25.007 thousand lei;
deferred tax liabilities related to fixed securities-shares 1.298 thousand lei;

and receivables on deferred tax in the amount of 419 thousand lei.

NOTE 18 - FINANCIAL INSTRUMENTS

A financialinstrument is anycontractgeneratingsimultaneouslya financialassetforanentityanda financial liability or an equity instrument for another entity. ThefinancialassetsandliabilitiesarerecognizedwhenAEROSTARbecomespartof thecontractual provisions of the instrument.

The financial assets of AEROSTAR include:

sight and term deposits held at banks;
trade receivables;
Evergent Investments S.A. shares (stock symbol: EVER);
immobilized receivables (collaterals deposited at third parties).

The financial liabilities of AEROSTAR S.A. include:

trade liabilities.

Onthereportingdate,AEROSTARdoesnothaveanyfinancialdebtsrelatedtooverdraftsandlongterm bank loans.

The main types of risks, generated by the financial instruments held, to which AEROSTAR is exposed are:

a) credit risk;
b) liquidity risk;
c) currency risk;
d) interest rate risk.

a) Credit risk

The credit risk is the risk that one of the parties involved in a financial instrument generates a financial loss for the other party as a result of the failure to meet a contractual obligation, related mainly to: - sight and term deposits held with banks

trade receivables;

Sight and term deposits are held only in first-tier banking institutions (top 5 by asset level) with ratings expressing the lowest risk rating.

In somecases,specifictradecreditriskmitigationinstrumentsarerequired(advancereceipts,bank letters of guarantee of good payment, confirmed export letters of credit). AEROSTARhasno significantexposureto a singlepartnerandno significantconcentrationof receivables in a single geographical area.

Exposure to credit risk

Theaccountingvalueof thefinancialassets,netof thedepreciationadjustments, representshe maximum exposure to the credit risk.


	31.12.2024	31.12.2023
Sight and term deposits held at banks	260.373	245.756
Trade receivables, net of adjustments for depreciation	95.347	67.924
Evergent Investments S.A. shares	46.074	57.674
Non-current receivables	42	42
Total	401.836	371.396

NOTE 18 - FINANCIAL INSTRUMENTS (continued)

The maximum exposure to credit risk by geographical area for trade receivables net of impairment adjustments is shown in the table below:

	31.12.2024	31.12.2023
Domestic market	31.867	6.706
Euro zone countries	27.712	29.502
U.K.	27.926	23.431
Other European countries	1.342	2.913
Other regions	6.500	5.372
Total	95.347	67.924

Depreciation adjustments

The timeframe structure of gross trade receivables on the reporting date is presented in the table below:

	Gross	Adjustments for depreciationGross value	Adjustments for value depreciation
		31.12.2024		31.12.2023
In due time	95.237		67.746
Past due, total of which:	220		445
31-60 days	77	39	343	172
61-90 days	52	26	-	-
91-120 days	47	23	14	7
Over 120 days	44	22	88	88
Over 1 year	-	-	-	-

Total 95.457 110 68.191 267 Themovementin impairmentadjustmentsfor tradereceivablesduringtheyearis shownin the following table:

	31.12.2024	31.12.2023
Balance on 1 January	267	954
Adjustments set up for depreciation	1.549	2.990
Adjustments for depreciations resumed as	(1.706)	(3.677)
revenues

Balance on 31 December 110 267 On 31.12.2024, 99,77%of thebalanceof tradereceivablesarerelatedto customerswitha good payment record.

b) Liquidity risk

The liquidity risk is the risk that AEROSTAR encounters difficulties to meet the obligations associated to the financial liabilities which are settled by cash payments.

AEROSTAR'spolicyregardingthisriskis tomaintainanoptimumlevelofliquiditysoastopayfor the liabilities, as they become due.

To evaluatetheliquidityrisk,thetreasurycashflowsfromoperations, investmentsandfinancing operations are monitored and reviewed weekly, monthly, quarterly and yearly in order to determine the estimated level of net liquidity modifications.

Also, the specific liquidity indicators are reviewed monthly (general liquidity, immediate liquidity and rate of general solvency) against the budgeted levels.

NOTE 18 - FINANCIAL INSTRUMENTS (continued)

Furthermore, inordertoreducetheliquidityrisk,AEROSTARmaintainsannuallya liquidityreserve as a Credit Line (usable as an overdraft) granted by banks to a maximum limit of 2.500 thousand USD.

Thetimeintervalsusedtoreviewthecontractual duedatesof thefinancialliabilities,witha viewto recording the timeframe for the cash flows in due time, are shown in the table below:

	Liabilities	Accounting value	Contractual cash flows	0-30 days	31-60 days	over 60 days
31.12.2024	Trade liabilities	43.629	(43.629)	(39.016)	(3.983)	(630)
31.12.2023	Trade liabilities	31.672	(31.672)	(27.813)	(3.664)	(195)

Thecashflowsincludedintheanalysesof theduedatesarenotexpectedtotakeplaceearlierorat significantly different values.

On 31.12.2024 AEROSTAR has no records of overdue financial liabilities.

c) Foreign currency risk

Theforeigncurrencyriskis theriskthatthefairvalueorfuturecashflowsof a financialinstrument fluctuate because of the changes in the currency exchange rates.

Exposure to the foreign currency risk

AEROSTAR is exposed to the foreign currency risks, as 79% of the turnover recorded in the reporting periodis denominatedin USD andEUR, whilea significantpartof theoperatingexpensesis denominated in LEI.

Therefore, AEROSTARis exposedtotheriskthatthecurrencyexchangeratevariationswillaffect both its net income and its financial position as expressed in LEI.

However, AEROSTAR has decided not to access currency hedging products (options, forwards) due to therelativelyhighinitialcostsandthepossibilityof losingopportunitiesin caseof depreciationof RON againstthemaincurrencies(USD,EUR).In 2024,AEROSTARrecordedgainsof 2.179 thousand lei from exchange rate differences.

Thenetexposureof thefinancialassetsandliabilitiestotheforeignexchangeriskis presentedbelow basedonthecarryingamountsdenominatedin foreigncurrencyrecordedattheendof thereporting period:

31.12.2024	thousand EUR	thousand USD
Sight and term deposits held at banks	2.358	3.917
Trade receivables	3.471	9.674
Trade liabilities	(1.615)	(5.173)
Net exposure in original currency	4.214	8.418

Sensitivity analysis

In viewof thenetexposurecalculatedin theabovetable,Aerostarcanbeconsideredtobemainly exposed to the currency risk generated by changes in the USD/USD and EUR/USD exchange rate. Takingintoconsiderationtheevolutionof USD/LEUandEUR/LEUexchangeratein theprevious years, arelatively highvolatility(+/-5%) of theUSD/LEUexchangerate andalow volatility(+/-1%) of the EUR/LEU exchange rate can be noticed.

NOTE 18 - FINANCIAL INSTRUMENTS (continued)

Thusa reasonabpossibleariationf +/-5%oroftheUSD/LETforeignexchangætænd for the EUR/LEU foreign exchange rate may be taken into account at the en

Theeffectf thereasonabipossibleariation ftheUSD/LEUandEUR/LEUxchangeates financial result of AEROSTAR is calculated in the following table:

31.12.2024	EUR/LEU	USD/LEU
Net exposure, in the currency of origin	4.214 k EUR	8.418 k USD
Currency exchange rate	4,9741	4,7768
Net exposure in functional currency	20.961 k LEI	40.211 k LE
Possible reasonable variation of exchange	+/- 1%	+/- 5%
rate
Effect of variation on the financial	+/- 210 k LEI +/- 2.011 k LP
result

d) Interest rate risk

ForthereportingeriodAEROSTARcontractedmulti-producteditFacilityof 7.000th USD, intended for financing the Company's operations, which includes:

2.500 thousand USD, usable as an overdraft;
maximum.000thousandSD,usableortheissuancef guaranteestrumentsank of guarantee and import letters of credit), provided that the overdraft The bank interest is applicable only for the overdraft.

As theoverdraffroductvasnotusedduringhereportingeriodincomeandcashflow independent of changes in bank market interest rates.

On 31.12.2024)elevelof guarantegrantednderommercialgreementssroughheissu banketterøf guarantændimportettersf creditmountbo 12.904 LEI (equivalento USD).

On 31.12.2024 no mortgages are set up on the real estate assets owned by A

NOTE 19 - OPERATING INCOME

	31 December	31 December
	2024	2023

Sales revenue, of which:	584.004	506.294
Revenue from product sales	333.771	298.870
Revenue from services provided	246.474	203.633
Revenue from selling goods	19	376
Revenue from rental	3.027	2.786
Trade discounts granted	(28)	-
Revenue from other activities	741	629

Revenue related to inventories of products finished and in progress	45.210	22.386
Revenue from the production of fixed assets	1.338	877
Revenue from operating subsidies	305	611
Revenue from subsidies for investments	826	1.026
Other revenue from operations	1.663	1.868
Total operating income	633.346	533.062

The Company recorded an increase in income from inventories of finished goods and work in progress amounting to22.824 thousand lei, as a result of the increase in the level of inventories of finished goods and work in progress compared to the end of the previous year.

In 2024,theCompanyrecordedincomefromoperatingsubsidiesin theamountof 305 thousandlei.Mostoftheamountsweregrantedfortheemployment, foranindefiniteperiod,of graduatesof educationalinstitutionsin accordancewith Law No. 76/2002on the unemployment insurance system and stimulation of employment.

Other operating income in the amount of 1.663 thousand lei is represented, among others, by incomefromtherecoveryof debtsfromformeremployees(tuitionfeesandotherdebts), income from recovered damages and fees.

NOTE 20 – OPERATING EXPENSES

	31 December	31 December
	2024	2023
Expenses on employee benefits, of which:	202.037	172.440
Salaries and allowances	176.814	151.816
Expenses on meal tickets granted to employees	14.915	11.202
Expenses on social security	10.308	9.422
Expenses on raw material and material	237.328	194.046
Energy, water and gas	13.451	12.924
Other material expenses, of which:	13.695	12.850
Expenses on non-stock materials	1.519	1.363
Expenses on goods	14	314
Expenses on packaging	817	793
Expenses on other material	11.345	10.380
Expenses on external services, of which:	50.426	40.454
Repairs	19.931	14.310
Transport costs	7.678	8.718
Commissions and fees	2.350	3.630
Travels, deployments	1.135	1.682
Rental and royalty expenses	809	911
Other expenses on services supplied by third parties	18.523	11.203
Trade discounts received	(110)	(107)
Amortizations	27.110	25.946
Net expenses (revenues) from adjustments on provisions	(17.489)	(27.240)
Net expenses (revenues) from adjustments on current assets	11.034	14.760
Other operational expenses	8.669	7.198
Trial operating expenses:	546.151	453.271

In accordancewiththeprovisionsof theInternational FinancialReportingStandardsandof the AccountingPoliciesManual,thecompanyregistersadjustmentson provisions(Note13) and adjustmentsfor theimpairmentof thecurrentassets,inventories, productionin progressand receivables, respectively (Note 8, Note 9 and Note 10).

In 2024, the company offered its employees meal vouchers worth 14.915 thousand lei.

Other operating expenses amounting to 8.669 thousand lei include, among others: local taxes and fees,sponsorships, scholarshipsgrantedto studentsenrolledin dualeducation,environmental protection expenses.

NOTE 20 – OPERATING EXPENSES (continued)

In 2024,AEROSTAR registered increased/set up and decreased/resumed adjustments, as follows:

Adjustments on provisions	31December	31 December
	2024	2023
Increases/setups	30.484	32.106
Decreases/reruns	(47.973)	(59.346)
Net expenses (revenues) from adjustments on provisions	(17.489)	(27.240)

During2024,theimpactof theadjustmentsonprovisionsiadecreaseintheoperatingexpenses of 17.489thousandLei. Comparedto the previousyear,the net incomerelatedto provision adjustments decreased by 9.751 thousand Lei.

Adjustments for impairment of current assets	31December 2024	31 December 2023
Increased/set up adjustments
Adjustments for impairment of inventories	23.813	23.245
Adjustments for impairment of receivables	1.725	3.102
Losses from receivables and various debtors	85	76
Total increased/set up adjustments	25.623	26.423
Decreased/resumed adjustments Adjustments for impairment of inventories	(12.655)	(7.853)
Adjustments for impairment of receivables	(1.934)	(3.810)
Total decreased/resumed adjustments	(14.589)	(11.663)

Net expenses (revenues) from adjustments on the impairment of current assets	11.034	14.760

In2024,theimpactof theadjustmentsfortheimpairmentof currentassetsis anincreasein the operating expenses of 11.034 thousand lei. Compared to the previous year, the net expenses from adjustments related to impairment of current assets decreased by 3.726 thousand lei.

NOTE 21 - FINANCIAL INCOME

	31 December 2024	31 December 2023
Income from foreign currency exchange differences	9.462	6.527
Interest income	11.147	14.181
Income from shares held in subsidiaries	516	153
Income on financial assets measured at fair value	3.802	3.962
Total financial income	24.927	24.823

AspectsregardingtheCompany'sexposuretotherisksgeneratedbythefinancialinstrumentsheld are presented in Note 18 Financial Instruments .

The income on financial assets measured at fair value represents the dividends related to the holding of instruments in the equity of Evergent Investments S.A.

NOTE 22 - FINANCIAL EXPENSES

	31 December 2024	31 December
Expenses from exchange rate differences Expenses on interest related to leasing contracts	7.283 30
Total financial expenses	7.313

In 2024 the Company registered in the financial expenses category: expenses from unfavourable exchange rate differences; expensesoninterestsrelatedto therightto usethelandunderconcessionforthe Maintenance Hangar in Iași.

NOTE 23 - TAX ON PROFIT

The tax on profit is recognized in the statement of profit or loss.

The tax on profit is the tax payable related to the profit made in the current period, as determined in accordance with the fiscal regulations applicable on the reporting date. The profitax rate applicable for 31.12.2024 was 16% (the same rate was applied for the financial year 2023).

Gross accounting profit		31 December 2024 104.809	31 December 202	96.956
Expenses with current tax on profit		8.967
Income tax on gains from the sale of securities held			558
		Reconciliation of accounting profit with the fiscal profit for 31 December 2024		Differences
Accounting revenues	658.273	Fiscal income	595.235
Accounting expenses	553.464	Fiscal expenses	491.941
Gross accounting profit, restated	104.809	Fiscal profit	103.294
Accounting tax (16%)	16.769	Fiscal tax (16%)	16.527
Tax reductions		Tax reductions, of which :	7.002
	-	Related to investments made acc. to Art. 22 Fiscal Code	2.997
		Sponsorship	2.706
		12% bonus according to OUG 153/2020	1.299
Tax on final profit	16.769	Tax on final profit*	9.525
Applicable legal rate	16,00%	Legal rate applicable	16,00%
calculatedon grossaccounting profit, restated Comparative key figures		9,09 % 31 December 2023
Gross accounting profit		96.956
Expenses with current tax on profit		6.285
		Income tax on the gain from the sale of securities held	153
		Reconciliation of accounting profit with the fiscal profit for 31 December 2023		Differences
Accounting revenues	557.885	Fiscal income	484.098
Accounting expenses	460.929	Fiscal expenses	397.690
Gross accounting profit, restated	96.956	Fiscal profit	86.408
Accounting tax (16%)	15.513	Fiscal tax (16%)	13.825
Tax reductions		Tax reductions, of which: :	7.387
	-	Related to investments made acc. to Art. 22 Fiscal Code	4.468
		Sponsorship	1.871
		14% bonus according to	1.048
		OUG 153/2020
Tax on final profit	15.513	Tax on final profit	6.438
Applicable legal rate Actual average tax rate,	16,00%	Applicable legal rate	16,00%

NOTE 23 - TAX ON PROFIT (continued)

Theeffectivetaxrateincreasedfrom6,64%in 2023to 9,09%in 2024.Themainfactorsthat affected the actual tax rate:

decreasingtax incentives,representingthe corporateincometax exemptionrelatedto investmentsmadeundertheArt.22of theTaxCode.In2024,theincentiveintheamountof 2.997 thousand RON, compared to 4.468 thousand RON in the previous year.

increased tax profit in relation to restated gross accounting profit, mainly due to the effect of:

non-taxable income obtained as a result of the recovery of non-deductible expenses
expenses not deductible for tax purposes, of which: expenses related to the setting aside or increaseof provisionsandvalueadjustmentson currentassetsnotdeductiblefor tax purposes, expenses related to book depreciation not deductible for tax purposes, etc.).

The financial performance in 2024 is influenced by the current and deferred income tax, as follows:

	31 December 2024	31 December 2023
Current income tax expenses *	(8.967)	(6.285)
Deferred income tax expenses	(7.056)	(5.379)
Deferred income tax revenue	6.939	7.736
Current and deferred income tax	(9.084)	(3.928)

*Note:Theincometaxfor2024amountsto 9.525thousandlei,of which558thousandlei are recognizedin equity,representingthetaxonthegainfromthesaleof equityinstrumentsthrough other comprehensive income.

NOTE 24 - RESULT PER SHARE

The profitper basicsharewas calculatedbasedon the profitattributableto the ordinary shareholders and on the number of ordinary shares.

The diluted result per share is equal to the result per basic share, as the company did not register any potential ordinary shares.

IN LEI	31.12.2024	31.12.2023
Profit attributable to ordinary shareholders Number of ordinary shares	95.724.564 152.277.450	93.027.905 152.277.450
Profit per share	0,629	0,611

NOTE 25- AVERAGE NUMBER OF EMPLOYEES

Average number of employees	12 months 2024	12 months 2023
AEROSTAR's own employees	1.698	1.679

Total number of employees	31.12.2024	31.12.2023
AEROSTAR's own employees	1.753	1.752

On31December2024thetotalnumberof employeesin theCompanyis 1.884,of which1.753are AEROSTAR'sownemployeesand131personsrepresentlabourforcehiredthrougha temporary employment agent.

On 31 December 2023, the total headcount was 1.846 employees, of which 1.752 were AEROSTAR's own employees and 94 persons represented labour force hired through a temporary employment agent.

NOTE 26 - TRANSACTIONS WITH AFFILIATED PARTIES

Acquisitions of goods and services	Year 2024	Year 2023
Airpro Consult SRL Bacău	12.910	9.799
Foar SRL Bacău	364	388
TOTAL	13.274	10.187
Sales of goods and services	Year 2024	Year 2023
Airpro Consult SRL Bacău	-
Foar SRL Bacău	2
TOTAL	2
Liabilities	Balance on 31.12.2024	Balance on 31.12.2023
Airpro Consult SRL Bacău	1.111	728
Foar SRL Bacău	14	24
TOTAL	1.125	752
Dividends received by Aerostar	Year 2024	Year 2023
Airpro Consult SRL Bacău	456
Foar SRL Bacău
	60
TOTAL	516	153 153

The transactions with the affiliated parties in the period 01.01.2024-31.12.2024 consisted in:

Servicesprovidedby AirproConsultSRL Bacauto AEROSTARSA Bacăufor temporary manpower;

Machinery rental services provided by Foar SRL Bacau to AEROSTAR SA Bacău;

Space rental services provided by AEROSTAR SA Bacau to Foar SRL Bacău;

Dividends received by Aerostar S.A. from Airpro SRL Bacau and Foar SRL Bacău (Note 7).

NOTE 27 - INFORMATION REGARDING THE CASH FLOW

The method used in the Cash Flow Statement is the direct method. Thecashflowsstatementpresentsthecashflowsandcashequivalentsclassifiedby operating activities, investments and financing, thus indicating how AEROSTAR generates and uses the cash and cash equivalents.

In the context of preparing the Cash Flows Statement:

the cash flows are the amounts collected and paid in cash and cash equivalents;
the cash includes the cash available in the company's cash office and the sight deposits held at banks (available in the current accounts);
the cash equivalents comprise the term deposits held at banks

The treasurycashflowsfromthetransactionsmadein foreigncurrencyareregisteredin the functional currency (LEU) by applying to the foreign currency value the exchange rate between the functionalcurrencyandtheforeigncurrencyon thedateof thecashflow (thedateof making payments and collections).

The earningsandlossesarisingfromtheexchangeratevariationarenot treasurycashflows. Nevertheless, the effect of the exchange rate variation on the cash and cash equivalent held or owed in foreign currency is reported in the treasury cash flows statement, but separately from the treasury cash flowsarising fromoperations, investments andfinancing, so as to reconcilethecash andcash equivalents at the beginning and end of the reporting period.

Cash flow	Value (thousand lei)	%
Total income, of which:	637.997	100%
Amounts from operating activities	604.546	95%
Amounts from investment activity	33.451	5%
Amounts from financing activity	-	0%
Total payments, of which:		100% 624.073
Payments from operating activities	566.228	91%
Payments from investment activity	26.952	4%
Payments from financing activity		30.893	5%
Net increase in cash and cash equivalents	13.924
Cash and cash equivalents at the end of the period	260.403

The summarized cash flow situation in 2024 is presented in the table below:

The operating activity is AEROSTAR S.A.'s main cash-generating activity.

the amounts collected from customers were worth 591.206 thousand LEI;
theamountscollectedfromtheStateBudgetwereworth13.340thousandLEI,of which13.031 thousandLEI representVAT recoveriesandothersocialreceivablesand309thousandLEI are receipts in the form of operating subsidies;
thepaymentstosuppliersandemployeesamountedto470.738thousandLEI,of which348.789 thousand LEI were payments to suppliers and 121.949 thousand LEI to employees; - the tax payments to the State Budget amounted to 95.490 thousand LEI, of which 78.607 thousand LEIinpayrolltaxes,9.256thousandLEIincometax,5.682thousandLEIinVAT, 1.945thousand LEI in taxes and duties to local budgets.

NOTE 27 - INFORMATION REGARDING THE CASH FLOW (continued)

Theoperatingactivitygeneratedanetcashof 38.318thousandLEI,anincreaseof 4.614thousand LEI compared to the same period last year.

The investment activity included:

bank interest income amounting to 8.969 thousand LEI from bank deposits made.
proceedsfromthesaleof Evergentshares(stocksymbol:EVER)in theamountof 20.468 thousand LEI

The purchased shares are held for dividend collection as well as for gains on their sale. The sale of EVER shares generated a gross gain of 3.486 thousand LEI.

dividends received from Evergent Investments S.A. in the amount of 3.498 thousand LEI;
dividendsreceivedfromaffiliatedentities(AirproConsultSRL,FoarSRL)in theamountof 516 thousand LEI;
paymentsfor thepurchaseof tangibleandintangiblefixedassetsin theamountof 26.952 thousand lei;

Theamountof cashflowallocatedsoastoincreasetheoperatingcapacityrepresents4%of the aggregate amount of cash used in operating, investing and financing activities.

As partof thefinancingactivity,an amountof 30.893thousandLEI waspaid,representing dividends due to AEROSTAR shareholders.

Thelevelof cashandcashequivalentsrecordedon31.12.2024is 260.403thousandLEI,upby 14.611 thousand LEI compared to the beginning of the year.

NOTE28 - LIABILITIES AND OTHER OFF-BALANCE ITEMS

AEROSTARS.A. registersas off-balanceitems,therights,liabilitiesandgoodswhicharenot recognized in the company assets and liabilities, i.e.:

	31 December 2024	31 December 2023
Liabilities :
guarantees granted to partners as letters of bank o guarantee and letters of credit	1.246	3.480
guarantees received from partners – as letters of o
bank guarantee and letters of credit mortgage guarantee received o	46.866 500	45.350
Goods, of which:
inventories of other material released for use o
(tooling, jigs, fixtures, safety equipment, measuring and control equipment, technical library etc.)	51.095	45.970
materials received in custody o	3.468	2.237
finished products received in custody o	2
materials - customers o	41
tangible and intangible assets – obtained or o purchased as a result of co-financed activity	554
products received for processing/repair o	21.132	22.167
materials received for processing/repairs o	4.420	4.068
supporting assets related to concession agreements o Hangar Iasi	2.490	2.490
fixed assets proposed for disposal o	448
Other off-balance values, of which:
material guarantees established for the managers' o	244
liability for the management of assets liabilities for covering certain future obligations to o
A.J.O.F.M. based on 9624/12.12.2011 regarding the defence industry	2.616	3.218
debtors removed from accounts, monitored further o on	218
creditors o	14
de minimis aid for participation in fairs and o exhibitions	787
Greenhouse Gas Emission Certificates	3.346	4.585

On 31 December2024,AEROSTARS.A. helda totalof 9.615greenhousegas emission certificates.

Themarketvalueonthelasttradingdayof a GHGcertificatewas69,96Euros,accordingtothe European EnergyExchange website(inDecember 2023:77,25 Euros),ata re-evaluation exchange rate of 4,9741 Lei/Euros.

NOTE 29 - DIRECTORS' REMUNERATION

On July04,2024,theOrdinaryGeneralMeetingof theshareholdersof AerostarSA tookplace,in which the Board of Directors of the company was elected, consisting of 5 (five) members, for a term of office of 4 years, starting July 11, 2024.

Board of Directors of AEROSTAR S.A. on 31.12.2024:

Surname and first name	Position	Profession
FILIP GRIGORE	President of the Board of Directors	Aviation Engineer
DAMASCHIN DORU	Vice-president of the Board of Directors	Economist
FILIP ALEXANDRU	Chief Executive Officer	Engineer
TONCEA RADU TUDOR	Member of the Board of Directors	Aviation Engineer
DOROŞ LIVIU-CLAUDIU	Member of the Board of Directors	Economist

In 2024,Aerostar did notgrantadvancepayments orcredits tothemembers of theBoard of Directors and did not make any commitment on their account as collateral of any kind.

In theOrdinaryGeneralMeetingthattookplaceon July 04,2024,theshareholdersof Aerostar approved the following:

for thetermof officestartingon 11.07.2024, theDirectorswill receivea fixedmonthly remuneration, amounting to the equivalent in lei of 1.000 Euros net/month;
for thetermof officestartingon 11.07.2024, theremunerationof directorswhoalsohold specificexecutivepositionshallconsistof a fixedmonthlyremuneration, amountingto the equivalentinleiof1.000Eurosnet/month, plusanadditional monthlyfixednetremuneration, of up to ten (10) times (inclusive) the remuneration of a member of the Board of Directors.

Thegrossindemnitiesgrantedto themembersof theBoardof DirectorsandExecutiveDirectorsin 2024accordingto theAGM'sDecisionfrom22.02.2024andthatof 04.07.2024, by virtueof their responsibilities, amounted to 1.812 thousand lei.

NOTE 30 - RISKMANAGEMENT

AEROSTAR is exposed to multiple risks and uncertainties that can affect its financial performance. ThebusinesslinesrunbyAEROSTAR,theoperational resultsorthefinancialstatementscouldbe affected by the materialization of the risks presented below.

AEROSTARpursuesto securethe averageand long-termsustainabilityand to reducethe uncertainty associated with its strategic and financial objectives.

Riskmanagement processesareinplacetoensurethatrisksareidentified,analysed,assessedand managed so as to minimise their effects to an agreed level.

However,theremayberisksanduncertainties inadditiontothosedescribedbelow,whicharenot currentlyknownor areconsideredinsignificant, butwhichin thefuturemayaffectthelinesof business run by AEROSTAR.

Operational Risk

It is the risk to incur losses or the risk of failure to make the estimated profits, determined by:

the use of processes, systems and manpower that were either inadequate or failed to function properly;
external events and actions: deterioration of the global economic conditions, natural disaster or other events that can affect AEROSTAR's assets.

Considering the global political turmoil, in the future we may face new types of risks, which is why AEROSTAR closely monitors the main areas of conflict.

The Operational Risk is also associated totheLegal Risk, defined as the risk of loss, resulting from the fines, penaltiesand sanctionsAEROSTAR is liable to in case of non-applicationor misapplicationf legalorcontractual dispositionsorregulations, aswellasduetothefactthatthe rightsandcontractual obligationsof AEROSTARand/orof itsbusinesspartnerarenotproperly established.

The effectsof thelegalrisk aremonitoredand eliminatedthrough a permanent informationsystem regarding the legislative modifications, aswell as by setting up a review, endorsement and approval system for the terms and conditions included in the commercial agreements.

AEROSTARhasallocatedandwill continueto allocateinvestmentfundsandotheroperational expenses in order to prevent and manage the operational risk.

Moreover,AEROSTARaimstohaveitsownfundstocovertheriskstowhichit is exposed,by setting aside provisions for risks and related expenses.

Furthermore, in order to mitigate the operational risk, AEROSTAR annually renews acivil liability insurancecontractwithleadinginsuranceandreinsuranceompaniesforitsmainlinesof business (manufacture of aviation products and maintenance of commercial aircraft).

The Credit Risk is the risk that AEROSTAR might bear a financial loss as a result of the failure to meetthecontractual obligationsby a partner,beingdeterminedmainlyby sightandtermbank deposits with banks and trade receivables.

Depositsheldwithbanksareplacedonlywithfirst-tierbankinginstitutionsthatareconsideredto have high creditworthiness.

The creditrisk,including thecountryrisk for thecountrywherethe customer performs itsactivity, is managedper businesspartner.Whendeemednecessary,specificinstrumentsof creditrisk mitigation are requested (advance payments, letters of bank guarantee, confirmed export credits).

NOTE 30 - RISKANAGEMENT (continued)

AEROSTARhasno significantxposureo a singlepartneanddoesnot havea sig concentration of turnover in a single geographical area. However,heres exposures theglobalnarketor Airbusprogrammess,a largeshar company's products are integrated on Airbus aircraft.

A presentation quantitative formation AEROSTAR' exposure creditiskis det Note 18 (Financial Instruments) to the Financial Statements.

Liquidityiskis theriskthatAEROSTARwill encountedifficultiesn meetingts obligations as they fall due.

For liquidityriskmanagemeptırposes;ashflowsaremonitoredndanalysedn a monthlyguarterlandannuabasisto determinteestimatelevelof netchangein l These analyses provide the basis for funding decisions and capital commi In order to mitigate liquidity risk, AEROSTAR maintains an annual liquidh Credif.ineavailable rusein theformof bankoverdrafts theamount f 2.500 hous Duringhereportingeriod EROSTARidnotusetheCreditine,asalltheCompany were financed from its own sources.

Marketiskis theriskthatthefairvalueor futuræashflowsof a financialnstrum fluctuate because of changes in market prices.

The market risk comprises the price risk, the currency risk and the intere AEROSTARis mainlyexposedo the pricerisk causedby fluctuationin the price materials and materials used in the production processes due to exceptio internations anctionwithconsequences thelimitation f thepossibility supply materials, the increase in the costs of specific taxes for import/export of n the USA.

This risk is managed by:

diversifying esupplie portfolio hich anprovidencrease degotiating vera event that the price of raw materials increases with some suppliers
concluding long-term contracts with fixed price clauses.

AEROSTAR is exposed to the exchange rate risk because 79% of its turno EUR, while a significant part of the operating expenses is denominated in ThusAEROSTARis exposedotheriskthattheexchangestevariations illaffectbot income, as well as its financial position, as they are expressed in LEI. An analysis AEROSTAR'sensitivity the oreignex change raturiations detaile 18 (Financial Instruments) to the Financial Statements.

As farastheinterestates concernedpetothefactthatAEROSTARdidnotusetheco Credit Line in the reporting period, the income and cash flows are indepe variation on the banking market.

Other aspects concerning risk management are presented in the chapter RISK MANAGEMENT of the Board of Directors' Report.

NOTE 31 - PREPAID EXPENSES AND INCOME

	31 December 31 December
	2024	2023

Prepaid expenses (short-term)	1.049	789
Prepaid income (short-term)	3.448	2.916

Theexpensesmadeandtheincomeobtainedin thecurrentperiod,butregardingfutureperiodsor financial years are registered distinctly in the accounting department, as prepaid expenses or prepaid income, as applicable.

The category of prepaid expenses on the books on 31 December 2024 includes amounts to resume withina periodof upto oneyearrepresenting, interalia,feesandtaxes,subscriptions, insurance policies,commissions, participationin fairsandconferences, on-lineservices,maintenanceof IT systems.

As on December 31, 2024, Aerostar did not recognize any long-term prepaid income . The category short-termprepaidincomeincludesamountsrelatingto the deliveryof goodsand services rendered, where the income recognition conditions of IFRS 15 are not met (the customers have not yet taken control of the goods/services).

depreciation Net amount

Net value on 31 December 2024

NOTE 32- ASSETS REGARDING THE RIGHTS TO USE THE LEASED ASSETS: reporting period 31 December 2024

	Values on 31 December 2024
	Gross amount	Cumulative depreciation	Net amount	Gross amount
Asset related to the right to use the land for the MRO Hangar in Iași	1.959	(236)	1.723	1.940
Total	1.959	(236)	1.723	1.940

Net accounting value on 31.12.2024 and transactions during the period:

	Net amount on 01 January 2024	Revaluations in the year 2024	Update provision for cost of dismantling/removal/ restoration of underlying assets	Depreciation during the period
Asset related to the right to use the land for the MRO Hangar in Iași	1.746	(3)	21	(41)

depreciation Net amount

Net value on 31 December 2023

NOTE 32- ASSETS REGARDING THE RIGHTS TO USE THE LEASED ASSETS: reporting period (continued)

COMPARATIVE KEY FIGURES - ASSETS REGARDING THE RIGHTS TO USE THE LEASED ASSETS: reporting period 31 December 2023

	Values on 31 December 2023
Account 251	Gross amount	Accumulated depreciation	Net amount	Gross amount
Asset related to the right to use the land for the MRO Hangar in Iași	1.940	(194)	1.746	1.907
Total	1.940	(194)	1.746	1.907

Net accounting value on 31.12.2023 and transactions during the period:

	Net value on 1 January 2023	Revaluations in the year 2023	Update provision for cost of dismantling/removal/r estoration of underlying assets	Depreciation over the period
Asset related to the right to use the land for the MRO Hangar in Iași	1.753	12	21	(40)

The right to use the land for the Hangar Mentenanță Iași was revalued at the exchange rate communicated by the National Bank of Romania on the last banking day of each reporting period.

NOTE 33 - EVENTS AFTER THE REPORTING PERIOD

AerostarS.A hasnotidentifiedanyeventssubsequent to thereportingdatethatwouldhavean impact on the financial statements for the financial year ended 31 December 2024.

These company financial statements that comprise the statement of financial position, the statement of profitorloss,othercomprehensive income,thestatement ofchangesinequity,thestatement of cash flowsandtheexplanatorynotestothefinancialstatementswereapprovedbytheBoardof Directors on 20.03.2025and signed on its behalf by:

Alexandru FILIP Chief Executive Officer

Doru DAMASCHIN Financial Director

DECLARATION

The undersigned ALEXANDRU FILIP, as GeneralDirector of AEROSTAR S.A. and DORU DAMASCHIN,as FinancialDirectorof AEROSTAR S.A., hereby undertake the responsibility forthe preparation of the individual financial statements as on 31.12.2024 and we confirm hereby that:

a) Theaccounting -financialstatementfor2024,thatwaspreparedin accordance withtheapplicableaccountingstandardsprovidesa fairimage,compliantwith therealityof theassets,obligations, financialposition,of theprofitandloss account of the company Aerostar S.A. Bacău;
b)Thereportof theBoardof Directorson thefinancialyear2024,preparedin accordancewiththeprovisionsofRegulationno.5/2018issuedby theFinancial Supervisory Authority - Annex no. 15, contains a correct review of the company's development andperformance, a descriptionofthemainrisksanduncertainties relatedtotheactivityofAerostarS.A.Bacăuandarepreparedin accordance withthesustainability reportingstandardsmentionedin Article29bofDirective 2013/34/EUandwiththeclarifications adoptedpursuantto Article8para.(4)of Regulation (EU) 2020/852.

General Directo r,

ALEXANDRU FILIP

Financial Directo r,

DORU DAMASCHIN

Auditeval Consulting s.r.l. Mi

Bacău, Str. Vadul Bistriței 29/C/4 Mobil: 0744 / 381.993 E-mail: [email protected] Nr. Înregistrare Registrul Comerțului J04/1836/2008 CUI: RO 24600940 Capital social: 200 lei Intesa Sanpaolo România sucursala Bacău RO64 WBAN 0204 1V03 7508 R001 TREZORERIA BACAU RO84 TREZ 0615 069X XX00 5679

INDEPENDENT AUDITOR'S REPORT

	AEROSIAH J.J.
20 T A a B	2025 17. MAR.	DOD

The Shareholders of AEROSTAR S.A. Bacau

Report on the audit of the financial statements

Our opinion

We have audited the accompanying financial statements of AEROSTAR S.A. Bacau ("the Company"), with the head office in Bacau, 9, Condorilor Str., identified at the Trade Register Office by the EUID Code: ROONRC.J1991001137040-R.C. Bacau and by the unique tax registration code RO 950531, which comprise the financial statement as at 31.12.2024, the statement of profit or loss, the statement of other comprehensive income, the statement of changes in equity and the statement of cash flows for the year then ended and the explanatory notes to the financial statements, including a summary of material accounting policies.
The Company financial statements as at 31.12.2024 are identified as follows:
· Net Assets/Total Equity: 620.334 thousand lei,
· Net profit for the financial year: 95.725 thousand lei.
In our opinion, the accompanying financial statements of AEROSTAR S.A. Bacau give a true and fair view, in all material matters, of the financial position of the Company as at December 31, 2024, and of its financial performance and cash flows for the year then ended in accordance with the Order of the Minister of Public Finance of Romania No. 2844/2016 for the approval of the accounting regulations in accordance with the International Financial Reporting Standards, as amended ("OMFP 2844/2016") and with the accounting policies described in the notes to the financial statements.

The basis for our opinion

We conducted our audit in accordance with the International Standards on Auditing ("ISA"), the EU Regulation No. 537 of the European Parliament and of the Council ("Regulation") and the Law No. 162/2017 ("Law").

Our responsibilities under these standards are described in the section "Auditor's Responsibilities for an Audit of the Financial Statements" of our report. We are independent of the Company in accordance with the Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants (the IESBA Code and applicable European regulations) and with the ethical requirements that are relevant to the audit of financial statements in Romania, including the Regulation and the Law, and we have fulfilled our other ethical responsibilities in accordance with those requirements and the IESBA Code.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Key audit matters

The key audit matters are those matters that, in on our professional judgment, were of most significance in the audit of the financial statements for the current period. These matters have been addressed in the context of the financial statements as a whole and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Audit procedures performed to address the
key audit matters:

Our audit procedures included, among others, the following: - We analyzed the Company's actual liabilities under which the provisions were recognized; - We analyzed the professional judgments used by the Company's Board of Management in determining the probable outcomes of events and quantifying potential liabilities; - We identified the recognition criteria as
detailed in the calculation made by the Company during the audit period. The recognition criteria in the financial statements are the company's prudent and reasonable approaches to risk in an economy affected by the post-pandemic and geopolitical crisis. - We obtained from the Company's legal
department, where appropriate, its views on the resolution of pending litigation as well as its best estimate of the consideration required to settle the obligations arising from such litigation.

- We analyzed the maturity of the liabilities
on which the provisions were set aside and
their classification into short and long-term.
- We identified the completeness and
accuracy of provisions as a significant audit
risk, we reviewed the procedures performed
and discussed the criteria for recognition
with the Company's Board of Management.

2. Production in progress

Due to the specific nature of the activity,
there is a risk that over- or undervaluation
and reporting of the production in progress
may influence the result for the current
financial year of the company's activity and,
implicitly, the going concern of the
Company.

- We addressed the recognition of the
production cost in the audit period and
reviewed the criteria used by the company
for its measurement and recognition in the
financial statements (IAS-2) and found
them to be appropriate.
- We verified these recognition criteria as
detailed in the company's determination of
work in progress, we reviewed the
procedures in place and found that they
could not have significant deviations.
The measurement of work in progress was
made at the cost of production that is lower
than the net realizable value in the normal
course of business.

Other information - The Board of Directors' Report

The Directors are responsible for the preparation and presentation of other information. Such other information comprises the Board of Directors' Report, which also includes the Sustainability Report, and the Remuneration Report, but does not comprise the financial statements and the auditor's report thereon.

Our opinion on the financial statements does not cover such other information and, unless explicitly stated in our report, we do not express any assurance conclusion on it.

In relation to our audit of the financial statements for the year ended December 31, 2024, our responsibility is to read that information and, in doing so, to consider whether such other information is significantly inconsistent with the financial statements or the knowledge we acquired during our audit, or appears to be materially misstated.

With regard to the Board of Directors' Report, which includes the Sustainability Report, we have read and reported whether it has been prepared, in all matters, in accordance with OMFP 2844/2016, paragraphs 15-19, respectively 48^5-48^8, of the Accounting Regulations in accordance with the International Financial Reporting Standards.

Based exclusively on the activities to be carried out during the audit of the financial statements, in our opinion:

a) The information presented in the Board of Directors' Report for the year for which the financial statements were prepared is consistent, in all material aspects, with the financial statements;

b) The Board of Directors' Report, identified as an appendix to the financial statements, which includes the Sustainability Report, was prepared, in all material aspects, in accordance with the disclosures required by OMFP 2844/2016, paragraphs 15-19, respectively 48^5-48^8 of the Accounting Regulations that comply with the International Financial Reporting Standards.

c) The Remuneration Report was drawn up, in all matters, in accordance with the provisions of Law No. 24/2017, Articles 106-107.

Furthermore, based on our knowledge and understanding of the Company and its environment, acquired during the audit, the financial statements for the year ended December 31, 2024, we are required to report whether we have identified any material misstatements in the Board of Directors' Report. We have nothing to report on this matter.

Responsibilities of the Board of Management and Supervisory Board

The Board of Management of our Company is responsible for an accurate preparation and presentation of the financial statements in accordance with OMFP 2844/2016, and for such internal control as the Board of Management deems necessary to enable the preparation of financial statements that are free from material misstatements, whether due to fraud or error.
In preparing the financial statements, the Board of Management management is responsible for assessing the Company's ability to continue operating under the going concern assumption, for disclosing, if applicable, going concern matters and the appropriateness of the use of the going concern basis of accounting, unless the Board of Management has no intention to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Company does not intend to and there are currently no reasons that would cause the Company to downsize or cease operations. There are no commercial or other disputes that would affect the continuity of the business, and the financial resources, working capital and labour force required to carry on an efficient business in the future are ensured.

The Supervisory Board is responsible for overseeing the Company's financial reporting process.

The auditor's responsibility for the audit of the financial statements

Our objectives consist in obtaining reasonable assurance about whether the financial statements, taken as a whole, are free from material misstatement, whether due to fraud or error, and issuing an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but it is not a guarantee that an audit conducted in accordance with the ISA will always detect a material misstatement, if one exists. Misstatements can be caused by either fraud or error and are considered material if, individually or in the aggregate they can reasonably be expected to influence the users' economic decisions taken on the basis of these financial statements.
As part of an audit in accordance with ISA, we have exercised professional judgment and have maintained professional scepticism throughout the audit. Our audit consisted of the following:
· Identifying and assessing the risks of material misstatement of the financial statements, due to either fraud or error, designing and performing audit procedures in response to those risks, and obtaining sufficient appropriate audit evidence to provide a basis for our opinion. The risk of not detecting a material misstatement caused by fraud is higher than the risk of not detecting a material misstatement caused by error because fraud may involve secret dealings, forgery, intentional misstatements, intentional omissions, misrepresentations and intentional circumvention of internal control.
· Understanding internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.
· Evaluating the appropriateness of the accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Management.
· Concluding on the appropriateness of the use of the going concern basis of accounting by the Board of Management and determining, based on the audit evidence obtained, whether there is a material uncertainty about events or conditions that may cast significant doubts about the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in the auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on audit evidence obtained up to the date of the auditor's report. However, future events or conditions may cause the Company to cease operating on a going concern basis.
· Evaluating the overall presentation, structure and content of the financial statements, including the disclosures, and the extent to which the financial statements reflect the underlying transactions and events in a manner that results in a fair presentation.
We communicate to the Supervisory Board, among other matters, the planned scope and timing of the audit and the main audit findings, including any internal control deficiencies that we identify during the audit.
We also provide to the Supervisory Board with a statement that we have complied with the relevant ethical requirements relating to independence and that we have disclosed to them all relationships and other matters that could reasonably be suspected of affecting our independence and, where appropriate, the related safeguards.
From the matters that we have communicated to the Supervisory Board, we determine those matters that were of most significance in the audit of the financial statements of the current period and, therefore, represent key audit matters. We describe these matters in our audit report, unless the applicable law or regulations prevent public disclosure of the matter or when, in extremely rare circumstances, we believe that a matter should not have been disclosed in our report because the public interest benefits could reasonably be expected to outweigh the adverse consequences of such disclosure.

Report on compliance with the Commission Delegated Regulation (EU) 2019/815 (Regulatory Technical Standard on the Single European Electronic Reporting Format -" ESEF")

In accordance with Law No. 162/2017 on the statutory audit of the annual financial statements and annual consolidated financial statements and the amendment of certain regulatory acts, we are required to express an opinion on the compliance of the financial statements included in the annual report for the financial year ended on December 31, 2024, with the requirements of Commission Delegated Regulation (EU) 2019/815 of December 17, 2018 supplementing Directive 2004/109/EC of the European Parliament and of the Council regarding regulatory technical standards on the specification of a single electronic reporting format ("RTS requirements on ESEF").

We have performed a reasonable assurance engagement on the compliance of the individual financial statements of AEROSTAR SA (the "Company") presented in XHTML format for the financial year ended December 31, 2024, with the requirements of Commission Delegated Regulation (EU) 2019/815 of December 17, 2018 supplementing Directive 2004/109/EC of the European Parliament and of the Council regarding technical standards on the specification of a single electronic reporting format ("ESEF Regulation") as presented in the digital files.

These procedures refer to testing the format and consistency of the electronic format of the individual financial statements (XHTML) with the audited individual financial statements and expressing an opinion on the compliance of the electronic format of the Company's financial statements for the financial year ended December 31, 2024 with the requirements of the ESEF Regulation.

Responsibilities of the Board of Management

The Company's Board of Management is responsible for the preparation of financial statements in digital format that comply with the RTS (Regulatory Technical Standards) requirements regarding ESEF. This responsibility includes preparing the financial statements in the applicable XHTML format, including ensuring consistency between the

digital financial statements and the signed financial statements, and designing, implementing and maintaining internal controls relevant to the application of the RTS requirements on ESEF.

This responsibility includes:

designing, implementing and maintaining internal control relevant to the application of the RTS (Regulatory Technical Standards) requirements regarding ESEF;

ensuring compliance between the Digital Files and the financial statements to be published in accordance with Order No. 2844/2016 with subsequent amendments.

The Supervisory Board is responsible for overseeing the financial reporting process in relation to the preparation of the individual financial statements, including the application of the ESEF Regulation.

Responsibilities of the auditor

We are responsible for expressing a conclusion on the extent to which the financial statements included in the annual financial report comply with the RTS requirements regarding ESEF, in all material aspects, based on the evidence obtained. Our reasonable assurance engagement was conducted in accordance with the International Standard on Assurance Engagements 3000 (Revised), Other Assurance Engagements than Audits or Reviews of Historical Financial Information (ISAE 3000) issued by the International Auditing and Assurance Standards Board.

A reasonable assurance engagement in accordance with ISAE 3000 involves performing procedures to obtain evidence regarding the compliance of the financial statements with the RTS requirements regarding ESEF. The nature, timing, and extent of the procedures selected depend on the auditor's judgment, including the auditor's assessment of the risk of material misstatement due to either fraud or error in relation to the provisions set out in the ESEF. A reasonable assurance engagement includes:

· obtaining an understanding of the process for preparing Digital Files in accordance with ESEF, including relevant internal controls;
· reconciling the Digital Files with the audited financial statements of the Company to be published in accordance with Order No. 2844/2016 as amended;
· assessing whether all the financial statements that are included in the annual financial report are prepared in a valid XHTML format.

We consider that the evidence obtained is sufficient and appropriate to provide a basis for our conclusion.

Our opinion on the compliance of the electronic format of the financial statements with the requirements of the ESEF Regulation

In our opinion, based on the procedures we have performed, the financial statements for the year ended December 31, 2024 included in the annual financial report and presented in the Digital Files have been prepared, in all material aspects, in accordance with the RTS requirements regarding ESEF.

In this section, we do not express an audit opinion, a review conclusion, or any other assurance conclusion regarding the financial statements. Our audit opinion on the Company's financial statements for the year ended December 31, 2024 is included in the Report on Financial Statements section above.

Other aspects

This independent report is addressed exclusively to the shareholders of the Company as a whole. Our audit was conducted so that we could report to the Company's shareholders those aspects that we are required to report in a financial audit report, and not for any other purpose.

To the extent permitted by law, we do not accept and assume responsibility except to the Company and its shareholders, as a whole, for our audit, for this report or the opinion expressed.

Report on other legal and regulatory provisions

We have been appointed as auditors of the Company by the General Meeting of Shareholders on 16.06.2022 to audit the financial statements of AEROSTAR SA for the financial year ended 31.12.2022. On 17.05.2023 the mandate was extended for a period of 3 years, covering the financial years ending on 31.12.2023, 31.12.2024 and 31.12.2025. The total uninterrupted duration of our engagement is 3 years, covering the financial years ended 31.12.2022, 31.12.2023 and 31.12.2024.

We confirm that:

· Our audit opinion on the individual financial statements expressed in this report is in accordance with the additional report presented to the Company's Audit Committee, which we issued on the same date as this report. Furthermore, in conducting our audit, we have maintained our independence from the audited entity;

· We have not provided to the Company prohibited non-audit services referred to in Article 5, para. (1) of EU Regulation No.537/2014.

17.03.2025

On behalf of AUDITEVAL CONSULTING SRL

Registered with the Public Supervisory Authority for Statutory Audit Activity (ASPAAS) in the electronic Public Register of Financial Auditors and Audit Firms under number FA865 Autoritatea pentru Supravegherea Publ

through

Audit partner: financial auditor Maricel Dascaly

Registered with the Public Supervisory Authority for Statutory Audit Activity (ASPAAS) in the electronic Public Register of Financial Audit Firms under number AF2229

Autoritatea pentru Supravegherea Publică a Aptiyita pil de Audit Statutar (ASPAAS) frma de Audit: Societatea AUDITEVAL CONSULTING S.R.L. Registrul Public Electronic: FA865

vității de Audit Statutar (ASPAA

Auditor financiar: MARICEL DASCALU

Registrul Public Electronic: AF2229

ERDA

Auditeval Consulting s.r.l.

LIMITED ASSURANCE REPORT of the independent auditor on the Sustainability Reporting for the financial year 2024

The Shareholders of AEROSTAR S.A. Bacau

Our limited assurance conclusion

We have performed a limited assurance engagement on the Sustainability Report included in Section II "STATEMENT ON SUSTAINABILITY" of the Annual Report prepared by the Board of Directors of the Company as of 31.12.2024, for the period from 01.01.2024 until 31.12.2024 of AEROSTAR SA, ("the Company"), having its head office in Bacau, 9 Condorilor Street, identified in the Trade Register with EUID Code: ROONRC.J1991001137040-R.C. Bacau and by the unique tax registration code RO 950531.

Based on the procedures we have performed and the evidence we have obtained, nothing has come to our attention that causes us to believe that the AEROSTAR SA Sustainability Report as at 31.12.2024 for the period from 01.01.2024 to 31.12. 2024 is not prepared, in all material respects, in accordance with the applicable legislative framework for sustainability reporting set out in the Order of the Minister of Finance No. 2844/2016, Chapter 71 and Order No. 85 of January 12, 2024 for regulating the aspects of sustainability reporting, including:

the compliance with the European Sustainability Reporting Standards ("ESRS"), including the fact that the process carried out by the Company to identify the information presented in the Sustainability Reporting is in accordance with EU Delegated Regulation 2023/2772 supplementing Directive 2013/34/EU of the European Parliament and of the Council regarding sustainability reporting standards (CSRD).
the compliance of the information disclosures regarding taxonomy, detailed in the Environmental Section of the Sustainability Reporting, with the applicable reporting requirements of Article 8 of Regulation (EU) No 852/2020 (referred to as the "Taxonomy Regulation").

The basis for our assurance conclusion

We conducted our limited assurance engagement in accordance with ISAE 3000 (Revised) "Assurance Engagements Other Than Audits or Reviews of Historical Financial Information."

Our responsibilities under this standard are detailed in the "Auditor's Responsibilities" section of our report.

We are independent of the Company in accordance with the International Code of Ethics for Professional Accountants (including the International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA Code), and the other relevant ethical requirements in Romania, including Law no. 162/2017 with subsequent amendments, for our assurance engagement on Sustainability Reporting, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code.

Our company applies the International Standard on Quality Management 1 and accordingly maintains a comprehensive quality management system that includes documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.

We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion.

Responsibilities of the Board of Management for the Sustainability Reporting

The board of management of AEROSTAR SA is responsible for designing, establishing, implementing and maintaining appropriate performance management and internal control systems from which the information reported in the Annual Report, Sustainability Statement section, is derived in accordance with the ESRS, including the selected indicators, so that they do not contain material misstatement due to fraud or error, such as for the preparation, measurement and calculation of the selected indicators and for their presentation in the Sustainability Statement.

These responsibilities include:

· understanding the context in which the company's activities and business relationships take place and developing an understanding of the affected stakeholders;
· the identification of actual and potential impacts (both negative and positive) related to sustainability matters, as well as risks and opportunities that affect or can be expected to affect the Company's financial position, financial performance, cash flows, access to finance or cost of capital in the short, medium, or long term;
· assessing the extent to which the impacts, risks and opportunities identified in relation to sustainability issues are material, by selecting and applying appropriate thresholds; and
· developing methodologies and making assumptions that are reasonable in the given circumstances.

The Board of Directors is also responsible for preparing the Sustainability Report in accordance with the sustainability reporting framework required by law, including:

· compliance with the European Sustainability Reporting Standards (ESRS);
· preparation of disclosures of taxonomy information in the Environmental Section of the Sustainability Reporting in accordance with Article 8 of Regulation (EU)

No 852/2020 ("Taxonomy Regulation");

· designing, implementing, and maintaining those internal controls that are considered necessary to enable the preparation of the Sustainability Reporting without material misstatement, whether caused by fraud or error, and
selecting and applying appropriate sustainability reporting methods as well as making assumptions and estimates about the individual sustainability information disclosures that are reasonable under the given circumstances.

The Board of Management is responsible for preventing and identifying fraud and for ensuring that AEROSTAR SA complies with the laws and regulations relevant to its activities in terms of sustainability.

Furthermore, the Board of the Management is responsible for ensuring that the personnel involved in preparing the Sustainability Reporting is adequately trained, the information systems are updated and any changes in the reporting flow cover all significant operational segments.

Inherent limitations in preparing the Sustainability Reporting

The process that the company adopts to define, collect and report its non-financial performance data is not subject to the formal processes adopted for financial reporting. As a result, data of this nature is subject to variations in definitions, collection and reporting methodology without a consistent and accepted standard. This can lead to information that is not comparable between Companies and from one year to another as methodologies develop. The accuracy and completeness of the information presented in the Sustainability Statement is subject to inherent limitations due to their nature and the methods used to identify, calculate or estimate this information.

The auditor's responsibilities

Our responsibility is to express a limited assurance conclusion on the Sustainability Report, on the selected indicators included therein, based on the procedures we have performed and the evidence we have obtained, that the Sustainability Report is free from material misstatement due to either fraud or error and to include our conclusion in the limited assurance report.

Misrepresentations can be caused by either fraud or error and are considered material if they could reasonably be expected, individually or in the aggregate, to influence the users decisions based on the Sustainability Report as a whole.

As part of a limited assurance engagement in accordance with ISAE 3000 (Revised), we exercise professional judgment and maintain professional scepticism throughout the engagement.

This standard requires us to comply with ethical standards and to plan and conduct the assurance engagement in such a way as to obtain limited assurance if the overall statement and the indicators selected, calculated and the Sustainability Reporting comply with the respective assessment criteria, and the methodology provided by the European Sustainability Reporting Standards(ESRS) provided by Delegated Regulation (EU) 2023/2772 supplementing Directive 2013/34/EU of the European Parliament and of the Council, as well as the specific methodology applied in the Sustainability Statement.

The procedures in a limited assurance engagement differ in nature and placement over time and are narrower than those in a reasonable assurance engagement. As a result, the level of assurance obtained in a limited assurance engagement is significantly lower than the assurance that would have been obtained if a reasonable assurance engagement had been conducted.

Our responsibilities with respect to Sustainability Reporting include:

· Acquiring an understanding of sustainability reporting, but not for the purpose of reaching a conclusion on its effectiveness and outcome;
· Designing and performing procedures to assess whether the reporting is consistent with the company's description of it.

Our other Sustainability Reporting responsibilities include:

· Acquiring an understanding of the company's control environment, processes and information systems relevant to the preparation of the Sustainability Report, but without evaluating the design of certain control activities, obtaining evidence of their implementation or testing their operational effectiveness;
· Identifying disclosures where material misstatements are likely to occur, whether due to fraud or error;
· Designing and performing procedures in response to Sustainability Reporting disclosures where material misstatements are likely to occur. The risk of not detecting a material misstatement caused by fraud is greater than in the case of error because fraud may involve complicity, falsification, intentional omissions, intentional misrepresentations, or circumvention of internal control.

We have complied with the independence and other ethical requirements under the International Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants (including the International Independence Standards for Accountants) (the IESBA Code), which is based on the fundamental principles of integrity, objectivity, professional competence and due diligence, confidentiality and professional conduct.

Summary and procedures performed

A limited assurance engagement involves performing procedures to obtain evidence on Sustainability Reporting.

The nature, timing and extent of the procedures selected depend on professional judgment, including the identification of disclosures where material misstatements, whether due to fraud or error, are likely to occur in the Sustainability Reporting.

The procedures selected depend on the auditor's judgment and our understanding of the indicators in the Sustainability Reporting and other engagement circumstances, as well as our considerations of areas where significant misstatements could arise in obtaining an understanding of the indicators, and we considered the process used by the Company to calculate those indicators in order to determine the relevant assurance procedures in the circumstances, but not for the purpose of expressing a conclusion on the effectiveness of the process or internal control over the indicators being analysed.

The procedures include, in particular, enquiries, observation of the processes performed, analysis of documents, analytical procedures, assessment of the correctness of the calculation methods and reconciliations with the supporting records.

To reach our conclusion of limited assurance on the Sustainability Reporting and selected indicators, we performed the following procedures:

Through our enquiries, we gained an understanding of the company's control environment and information systems relevant to the reporting of the indicators under review, but we did not assess how certain control activities were established, nor did we obtain evidence of their implementation, or test their operational effectiveness.
We gained an understanding of the relevant systems, processes and procedures through enquiries, analytical procedures, observation and other applicable evidence-gathering procedures.
We obtained the relevant calculations and breakdowns for each indicator and verified the mathematical calculations.
We assessed whether the structure and presentation of the Sustainability Report complies with the European Sustainability Reporting Standards (ESRS);
We assessed whether the significant information obtained through the process of identifying the information required to be presented in the Sustainability Report is included in the Sustainability Report;
We compared the information contained in the Sustainability Statement in respect of the selected indicators with the detailed calculations.
We assessed the qualitative and quantitative information specified in the Sustainability Statement so as to obtain limited assurance that the selected indicators presented in the Sustainability Statement have been prepared, in all material aspects, in accordance with the reporting criteria set out in the European Sustainability Reporting Standards (ESRS) provided by Delegated Regulation (EU) 2023/2772 supplementing Directive 2013/34/EU of the European Parliament and of the Council as regards sustainability reporting standards.

A	INDICATORS THAT ARE NOT FINANCIALLY MATERIAL
Item No.	Disclosure requirement and related Specific indicator data point		Location in the Annual Re
1	Impacts, risks and opportunities and their interaction with the business model, SBM-3, IRO -1	Adaptation to climate change	Reported on page 45 of the Annual Report, section Sustainability Statement
	Material impacts, risks and opportunities, IRO-1	Air pollution	Reported on page 49 of the Annual Report, section Sustainability Statement
2	Material impacts, risks and opportunities, IRO-11	Resource inflows	Reported on page 55 of the Annual Report, section Sustainability Statement
3	Interests and views of the stakeholders SBM-2	Adequate salaries, Social dialogue, Gender equality and equal pay for work of equal value, Training and skills development, Health and safety	Reported on pages 59, 60 o Annual Report, section Sustainability Statement
4	Material risks, impacts and opportunities and their interaction with the strategy and business model, SBM-3	Health and safety, Equal treatment and equal opportunities for all	Reported on page 71 of the Annual Report, section Sustainability Statement

The selected indicators are as follows:

A	INDICATORS THAT ARE NOT FINANCIALLY MATERIAL
Item No.	Disclosure requirement and related data point	Specific indicator	Location in the Annual Re
റ	Material risks, impacts and opportunities and their interaction with the strategy and business model, SBM-3	Impacts related to security, Right to education and culture (outside the standard), Freedom of expression	Reported on page 75 of the Annual Report, section Sustainability Statement
6	Material risks, impacts and opportunities and their interaction with the strategy and business model, SBM-3 - IRO 1	Safety of products and services	Reported on page 80 of the Annual Report, section Sustainability Statement
7	Impacts, risks, opportunities	Concerns related to behaviour that is illegal or contravenes the code of conduct or internal regulations, Business conduct, Payment practices,	Reported on page 80 of the Annual Report, section Sustainability Statement
		Payment practices, Supply chain and impacts on sustainability issues
8	Additional topics	Compliance with export/import control regulations, Security incident - data loss, GDPR data	Reported on page 88 of the Annual Report, section Sustainability Statement
B		INDICATORS THAT ARE NOT FINANCIALLY MATERIAL
Item	Disclosure requirement and related	Specific indicator	Location in the Annual Re
No.	data point
1	Targets related to climate change mitigation and adaptation, ESRS E1-4	Natural gas consumption and electricity consumption/turnover	Reported on page 46 of the Annual Report, section Sustainability Statement
2	Energy consumption and energy mix, ESRS E1-5	Evolution of electricity and methane gas consumption	Reported on page 46 of the Annual Report, section Sustainability Statement
3	Gross GHG emissions of categories 1, 2, 3 and total GHG emissions, ESRS E1-6	Gross GHG emissions	Reported on pages 47, 48 o Annual Report, section Sustainability Statement
4	Air, water and soil pollution, ESRS E2-4	Evolution of organic compound emissions	Reported on page 50 of the Annual Report, section Sustainability Statement
5	Targets related to water and marine resources, ESRS E3-3	Evolution of water consumption/turnover	Reported on page 53 of the Annual Report, section Sustainability Statement
6	Water consumption, ESRS E3-4	Evolution of water consumption/turnover	Reported on page 54 of the Annual Report, section Sustainability Statement
7	Targets related to the use of resources and circular economy ESRS E5-4, ESRS E5-5	Waste evolution and recovery	Reported on page 56 of the Annual Report, section Sustainability Statement
8	Characteristics of own workforce ESRS S1-6; ESRS S1-7	Number of employees by gender	Reported on page 64 of the Annual Report, section Sustainability Statement
9	social Collective negotiations and	Consultation with the trade	Reported on page 65 of the

			Sustainability Statement
10	Training and skills development indicators, ESRS S1-13	Analysis of personnel training	Reported on page 66 of the Annual Report, section Sustainability Statement
11	Health and safety indicators, ESRS S1-14	Analysis of occupational health and safety	Reported on page 68 of the Annual Report, section Sustainability Statement
12	Remuneration indicators (pay gap and total remuneration), BSRS SI-16	Analysis of work remuneration	Reported on page 69 of the Annual Report, section Sustainability Statement
13	Incidents, complaints and serious human rights issues and incidents, ESRS S1-17	Number of incidents, complaints and serious human rights issues and incidents	Reported on page 70 of the Annual Report, section Sustainability Statement

The procedures performed did not constitute an audit in accordance with the International Standards on Auditing, nor did they constitute an examination of the effectiveness of the company's internal control systems, or an examination of its compliance with laws, regulations or other matters. Accordingly, our performance of the procedures does not result in the expression of an opinion or any other form of assurance on the company's internal control systems or its compliance with laws, regulations or other matters.

Therefore, the assurance provided by our procedures should be considered in light of these limitations on the nature and extent of the procedures performed to obtain audit evidence.

A limited assurance engagement provides a low level of assurance, and is not a guarantee that an assurance engagement performed in accordance with the International Standards on Assurance Engagements (ISAE) will always detect a material misstatement when it exists.

We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion of limited assurance as expressed.

Other aspects

This independent report is addressed exclusively to the shareholders of the Company as a whole. Our audit was conducted so that we could report to the Company's shareholders those aspects that we are required to report in a financial audit report, and not for any other purpose.

To the extent permitted by law, we do not accept and assume responsibility except to the Company and its shareholders, as a whole, for our audit, for this report or the conclusion expressed.

Bacău, 17.03.2025

On behalf of AUDITEVAL CONSULTING SRL

Registered with the Public Supervisory Authority for Statutory Audit Associated AS) in
the electronic Public Register of Financial Auditors and Audits Photoster PARCE

uditor financiar:

MARICEL DASCALU Registrul Public Electronic: AF2229

AUDITEVAL CONSULTING S.R.L.

through

Audit partner: financial auditor Maricel Dascalu

Registered with the Public Supervisory Authority for Statutory Assumity ASPANYASS the electronic Public Register of Financial Auditors and Auditions and Auditions and 15 all irma de Audit: Societatea

AI Terminal

Aerostar S.A.

2323_10-k_2025-04-25_5427d9af-81ae-4f7c-873d-d8b1cf25f742.pdf

ANNUAL REPORT

MESSAGE FROM THE PRESIDENT OF THE BOARD OF DIRECTORS OF AEROS TAR S.A.

MESSAGE FROM THE CHIEF EXECUTIVE OFFICER OF AEROS TAR S.A.

I. GENERAL INFORM ATION

1. BASIS OF PRE PARATION OF THE ANNUAL REPORT BP-1, BP-2

The activities o fAEROSTAR are carried out at the registered office of the compan y, which

1.1. AEROSTAR's Activity and Products

AEROSTAR business lines

Defence Systems

AEROSTAR's presence in the Global Market

1.2. Reporting the Results for 2024

CONSORTIUMS AND AFFILI ATIONS

AWARDS OBTAINED IN THE REPORTING YEAR

AEROSTAR HAS FOUNDED:

COMMUNITY ACTIONS CARRIED OUT BY OUR COM PANY IN 2024:

PRODUCT QUALITY AND CONTINUOUS DEVELOPMENT

SYSTEM CERTIFICATIONS

AUTHORIZATIONS

ACCREDITATIONS

GOVERNANCE

1.1. The role of the administrative, management and supervisory bodies GOV -1

General Meeting of Shareholders

Board of Directors

Responsibilities of the Board of Directors

Executive Management

Audit Committee

1.2. Information provided to the company's administrative, management and supervisory bodies and sustainability aspects addressed by them

1.3. Integrating sustainability performance into incentive schemes GOV-3

1.4. Risk management and internal controls related to sustainability reporting

GOV-5

Management accounting

Budgetary control

Controlling

Internal audit

1.5. AEROSTAR Shareholders

Relations with shareholders and the capital market

Aspects concerning the company's capital and management

Affiliated parties

Corporate Governance Compliance Table 2024

2. STRATEGY

2.1. Strategy, Business Model and V alue Chain SBM-1

SUSTAINABILITYSTRATEGY

Business Model SBM-1

Value Chain

2.2. Stakeholders' interests and views SBM 2

2.3. Material impacts, risks and opportunities and their interaction with the strategy and business model

3. IMPACT, RISKAND OPPORTUNITY MANAGEMENT

3.1. Double Materiality (Significance)

3.2. Description of the processes to identify and assess material impacts, risks and opportunities IRO -1

LIST OF MATERIALMATTERSAND INTERPRETATION OF RESULTS

The analysis matrix revealed the following:

1. Potential negative matters with financial effects:

FINANCIAL MATERIALITY

REAL NEGATIVE (non-material)

Two main areas of interest stood out in light of their severity thresholds.

These areas of interest are top priorities for our compan y.

End User Domain - The safety of our products

Own Workforce Domain - Health and safety at work

3.3. MDR-P Policies,AMORRons, MDR-M IndicatoTargeDR-T

II. SUSAINABILITSTATEMENT

4. ENVIRONMANINFORMON

4.1. CLIMTE CHANGE - E1

Transition plan for climate change mitigation

Material impacts, risks and opportunities and their interaction with the business model SBM-3, IRO -1

Description of the processes to identify and assess material climate-related impacts, risks and opportunities IRO-1

Climate change policy actions and resources E1-3

Climate change mitigation and adaptation targets E1-4

Energy consumption and mix E1-5

Gross emissions of GHG categories 1, 2, 3 and total GHG emissions E1-6

Gross GHG emissions

Internal carbon pricing

Anticipated financial impactsfrommaterial physicalndtransitionrisksandpotential climate-related opportunities E1-9

4.2. POLLUTION - E2 Material impacts, risks and opportunities IRO-1

Pollution actions and resources

Targets related to pollution E2-3

Pollution of air , water and soil

Substances of concern and substances of very high concern E2-5

Total water consumption in m ³