Flexopack S.A.

FLEXOPACK SA - 213800SD9V875QXDRR32 - 2025 213800SD9V875QXDRR32 2024-01-01 2024-12-31 213800SD9V875QXDRR32 2023-01-01 2023-12-31 213800SD9V875QXDRR32 2022-12-31 213800SD9V875QXDRR32 2023-12-31 213800SD9V875QXDRR32 2024-12-31 213800SD9V875QXDRR32 2022-12-31 ifrs-full:EquityAttributableToOwnersOfParentMember 213800SD9V875QXDRR32 2022-12-31 ifrs-full:RetainedEarningsMember 213800SD9V875QXDRR32 2022-12-31 ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember 213800SD9V875QXDRR32 2022-12-31 ifrs-full:OtherReservesMember 213800SD9V875QXDRR32 2022-12-31 ifrs-full:SharePremiumMember 213800SD9V875QXDRR32 2022-12-31 ifrs-full:IssuedCapitalMember 213800SD9V875QXDRR32 2023-01-01 2023-12-31 ifrs-full:EquityAttributableToOwnersOfParentMember 213800SD9V875QXDRR32 2023-01-01 2023-12-31 ifrs-full:RetainedEarningsMember 213800SD9V875QXDRR32 2023-01-01 2023-12-31 ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember 213800SD9V875QXDRR32 2023-01-01 2023-12-31 ifrs-full:OtherReservesMember 213800SD9V875QXDRR32 2023-01-01 2023-12-31 ifrs-full:SharePremiumMember 213800SD9V875QXDRR32 2023-01-01 2023-12-31 ifrs-full:IssuedCapitalMember 213800SD9V875QXDRR32 2023-12-31 ifrs-full:EquityAttributableToOwnersOfParentMember 213800SD9V875QXDRR32 2023-12-31 ifrs-full:RetainedEarningsMember 213800SD9V875QXDRR32 2023-12-31 ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember 213800SD9V875QXDRR32 2023-12-31 ifrs-full:OtherReservesMember 213800SD9V875QXDRR32 2023-12-31 ifrs-full:SharePremiumMember 213800SD9V875QXDRR32 2023-12-31 ifrs-full:IssuedCapitalMember 213800SD9V875QXDRR32 2024-01-01 2024-12-31 ifrs-full:EquityAttributableToOwnersOfParentMember 213800SD9V875QXDRR32 2024-01-01 2024-12-31 ifrs-full:RetainedEarningsMember 213800SD9V875QXDRR32 2024-01-01 2024-12-31 ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember 213800SD9V875QXDRR32 2024-01-01 2024-12-31 ifrs-full:OtherReservesMember 213800SD9V875QXDRR32 2024-01-01 2024-12-31 ifrs-full:SharePremiumMember 213800SD9V875QXDRR32 2024-01-01 2024-12-31 ifrs-full:IssuedCapitalMember 213800SD9V875QXDRR32 2024-12-31 ifrs-full:EquityAttributableToOwnersOfParentMember 213800SD9V875QXDRR32 2024-12-31 ifrs-full:RetainedEarningsMember 213800SD9V875QXDRR32 2024-12-31 ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember 213800SD9V875QXDRR32 2024-12-31 ifrs-full:OtherReservesMember 213800SD9V875QXDRR32 2024-12-31 ifrs-full:SharePremiumMember 213800SD9V875QXDRR32 2024-12-31 ifrs-full:IssuedCapitalMemberiso4217:EUR iso4217:EURxbrli:shares FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 1 TZIMA LOCATION – 194 00 KOROPI ATTICA, GREECE GENERAL ELECTRONIC COMMERCIAL REGISTRY No. 582101000 Annual Financial Report for financial year 2024 (January 1 st 2024 - December 31 st 2024) According to article 4 of L. 3556/2007, applies as amended And the relevant authorized and executive decisions issued by the Board of Directors of the Hellenic Capital Market Commission FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 2 CONTENTS CHAPTER 1 : Statements by Representatives of the Board of Directors ........................................................... 5 CHAPTER 2: Management Report by the Board of Directors (including the Corporate Governance Statement), for financial year 2024........................................................................................................................................ 6 Sustainability Statement ..................................................................................................................................93 Independent Auditor’s Limited Assurance Report on Sustainability Statement ...........................................174 CHAPTER 3: Independent Auditor’s Report ...................................................................................................179 CHAPTER 4 : Annual Financial Statements ....................................................................................................186 Statement of Financial Position ......................................................................................................... 187 Income Statement ........................................................................................................................... 188 Statement of Comprehensive Income................................................................................................ 189 Consolidated Statement of Changes in Equity .................................................................................... 190 Statement of Changes in Parent Company’s Equity ............................................................................ 191 Statement of Cash Flows .................................................................................................................. 192 1. General Information on the Company and Group ........................................................................... 193 2. Basis for the preparation of the financial statements ...................................................................... 194 2.1 Adoption of New and Revised International Standards.................................................................. 194 2.2 Significant accounting judgments, estimations and assumptions ................................................... 197 3. Material accounting principles ....................................................................................................... 199 3.1 Consolidation ............................................................................................................................. 199 3.1.1 Structure of the Group and consolidation method of companies ................................................. 200 3.2 Operation and presentation currency and foreign currency translation ........................................... 202 3.3 Tangible fixed assets .................................................................................................................. 202 3.4 Goodwill .................................................................................................................................... 203 3.5 Intangible assets........................................................................................................................ 203 3.6 Impairment of Assets ................................................................................................................. 204 3.7 Trade receivables and other receivables ...................................................................................... 204 3.8 Inventories ................................................................................................................................ 204 3.9 Cash & cash equivalents ............................................................................................................. 205 3.10 Suppliers and related liabilities .................................................................................................. 205 3.11 Financial Assets and Financial Liabilities ..................................................................................... 205 3.12 Financial Derivatives ................................................................................................................ 207 3.13 Share capital ............................................................................................................................ 207 3.14 Loans ...................................................................................................................................... 207 3.15 Income tax (Current and deferred) ............................................................................................ 208 3.16 Employee benefits .................................................................................................................... 208 3.17 Government Grants .................................................................................................................. 209 3.18 Provisions for contingent claims-liabilities .................................................................................. 209 3.19 Recognition of income .............................................................................................................. 209 FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 3 3.20 Leases ..................................................................................................................................... 210 3.21 Dividend distribution ................................................................................................................ 211 3.22 Earnings per Share ................................................................................................................... 211 4. Segment reporting ....................................................................................................................... 212 5. Risk Management ........................................................................................................................ 212 6. Notes on the Financial Statements ................................................................................................ 222 6.1 Tangible fixed assets ................................................................................................................. 222 6.2 Goodwill .................................................................................................................................... 223 6.3 Intangible assets........................................................................................................................ 224 6.4 Participations in Subsidiaries ....................................................................................................... 225 6.5 Participations in associate companies .......................................................................................... 226 Participations of the Company in associate (related) companies are analyzed as follows. ..................... 226 6.6 Other long-term receivables........................................................................................................ 227 6.7 Inventories ................................................................................................................................ 227 6.8 Trade receivables ....................................................................................................................... 227 6.9 Other receivables ....................................................................................................................... 229 6.10 Cash & cash equivalents ........................................................................................................... 229 6.11 Equity...................................................................................................................................... 229 6.11.1 Share Capital and Share Premium .......................................................................................... 229 6.11.2 Reserves ............................................................................................................................... 230 6.11.3 Retained earnings ................................................................................................................. 233 6.12 Deferred tax assets and liabilities .............................................................................................. 233 6.13 Provision for staff indemnities due to retirement ....................................................................... 234 6.14 Leases – Right of Use Assets ................................................................................................... 237 6.15 Long-term and short-term loans ................................................................................................ 237 6.15.1 Other long-term liabilities....................................................................................................... 240 6.16 Other provisions ....................................................................................................................... 241 6.17 Suppliers and other liabilities .................................................................................................... 241 6.18 Liabilities from income tax ........................................................................................................ 242 6.19 Turnover ................................................................................................................................. 242 6.20 Analysis of Expenses per category ............................................................................................. 243 6.21 Employee Benefits .................................................................................................................... 244 6.22 Other Operating Income and Expenses ...................................................................................... 245 6.23 Financial Income and Expenses ................................................................................................. 245 6.24 Other Financial Results ............................................................................................................. 246 6.25 Income Tax ............................................................................................................................. 246 6.26 Contingent Receivables - Liabilities ............................................................................................ 247 6.26.1 Information regarding assumed liabilities ................................................................................ 247 6.26.2 Tax un-audited financial years................................................................................................ 248 6.26.3 Information regarding contingent receivables .......................................................................... 249 6.27 Current liens ............................................................................................................................ 249 FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 4 6.28 Auditors’ fees .......................................................................................................................... 249 6.29 Transactions with related parties ............................................................................................... 250 6.30 Earnings per share ................................................................................................................... 253 6.31 Dividends ................................................................................................................................ 254 6.32 Fair value measurement ........................................................................................................... 255 6.33 Reconciliation of cash flows from financing activities .................................................................. 255 6.34 Establishment of a share distribution Program to the members of the Company's Board of Directors, managers and other executives, in the form of a Stock Option Plan .................................................... 256 6.35 Events after the reporting date of the financial statements ......................................................... 258 CHAPTER 5: Online availability of financial information ................................................................................258 APPENDIX A: Report of the Audit Committee for the year 2024 .......................................................... 259 FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 5 CHAPTER 1 : Statements by Representatives of the Board of Directors (According to article 4 par. 2 of L. 3556/2007, as is in effect) 1. Georgios Ginosatis of Spyridonos, resident of Koropi Attica, 6 Karaiskaki Str., Chairman of the Board of Directors. 2. Stamatios Ginosatis of Spyridonos, resident of Koropi Attica, 204 Vas. Konstantinou Str., Deputy Chief Executive Officer. 3. Asimina Ginosati of Dimitrios, resident of Koropi Attica, 204 Vas. Konstantinou Str., Executive Member of the Board of Directors. **** We, the following signatories, under our capacity as mentioned above, and according to the relevant stipulations by law (article 4 par. 2, case c, of Law 3556/2007, as they are in effect as of today following the latest amendment pursuant to article 16 of Law 5164/2024, and specifically pursuant to the relevant special decision by the Board of Directors of the Société Anonyme Company with the name “FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY” and with the distinctive title “FLEXOPACK S.A.”, (hereinafter the “Company” or “FLEXOPACK”), hereby state and confirm that to our knowledge: (a) The annual Financial statements of the Company for financial year 2024 (1.1.2024 - 31.12.2024), separate and consolidated, which were prepared in accordance with the current accounting standards in effect, accurately present the assets and liabilities, the equity and results for the period of the Company, as well as of the companies included in the consolidation and considered aggregately as a whole, and (b) the Management Report of the Board of Directors of the Company depicts in true manner the most significant events occurring during the financial year 2024 (01.01.2024-31.12.2024), their effect on the annual Financial Statements, including the description of the major risks and uncertainties which the Company faces, the important transactions taking place between the Company and its related parties (as they are defined by IAS 24), as well as the development of the activities, the performance and position of the Company and the companies included in the consolidation regarded as a whole. Finally, the Management Report of Board of Directors was prepared in accordance with the sustainability reporting standards of article 154A of Law 4548/2018 (A’ 104) and in line with the specifications approved in relation to paragraph 4 of article 8 of the Regulation (EU) 2020/852 of the European Parliament and the European Council as at June 18 th , 2020, establishing a framework that facilitates the sustainable investment as well as the amendment of Regulation (EU) 2019/2088 (L 198). Koropi, 28 April 2025 The parties of the statement Georgios Ginosatis ID NO. ΑΕ 153990 Stamatios Ginosatis ID NO. S 500301 Asimina Ginosati ID NO. ΑΒ 243605 FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 6 CHAPTER 2: Management Report by the Board of Directors (including the Corporate Governance Statement), for financial year 2024 The current Annual Management Report by the Board of Directors (hereinafter for the sake of brevity the “Report” or “Management Report”), refers to the financial year 2024 (01.01.2024 – 31.12.2024) was prepared and is in line with the relevant provisions of 4548/2018 "Reform of the Law of Societe Anonymes" (Government Gazette Α΄ 104 / 13.06.2018) and also with the provisions of Law 3556/2007 (Government Gazette 91Α/30.04.2007) and especially the article 4, as both laws are currently in effect following the amendments due to Law 5164/2024, and with the relevant, as stated by law, executive decisions issued by the Hellenic Capital Market Commission and specifically Decisions No. 1/434/2007 and 8/754/14.04.2016, as the latter is in force after its amendment by the decision with number 12A / 889 / 31.08.2020 of the Board of Directors of the Hellenic Capital Market Commission. The present Report includes in synopsis and in understandable, essential and comprehensive manner all sub- sections required, according to the above regulatory framework, and depicts in clear and true manner all the relevant by law information, so as to create an essential and in depth sum of information for the activities during the period under consideration of the Societe Anonyme under the name “FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY” (which in the current Report will be called for the sake of brevity as “Company” or “FLEXOPACK”) as well as of FLEXOPACK Group. Given the fact that the Company prepares consolidated and non-consolidated (separate) Financial Statements, the present Report is exclusive, with however as its basic and primary reference the Company’s consolidated financial data and those of its related companies. References to non-consolidated financial data in the following analysis, are made in specific points deemed reasonable or necessary by the Company’s Board of Directors, for the better understanding of the Report’s contents and also for the more effective provision of information towards the investment community. The subsidiaries and related companies, which are included in the consolidated Financial Statements and the percentages of the Company's direct and indirect participation in these entities, are mentioned in note 3.1.1 of the annual Financial Statements. The present Report is included in total with the annual Financial Statements (separate and consolidated) of the year 2024 and the other required by law information and statements in the Annual Financial Report which concerns the financial year 2024. The sub-sections of the Report and the content of such are as follows: SECTION A’ Significant events of financial year 2024 The significant events that occurred during the closing financial year 2024 as well as their impact on the annual Financial Statements have as follows: FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 7 1. Annual Ordinary General Shareholders’ Meeting of the Company On 21 June 2024, the Annual Ordinary General Meeting of the Company's Shareholders was held at the corporate headquarters (Koropi, Attica, Tzima location, 37 Hephaestus Street), which was attended in person or by a representative, by shareholders representing 9,675,400 common registered shares and equal number of voting rights, i.e. a high quorum percentage of 82.18% out of the total 11,772,774 shares and equal number of voting rights of the Company. It is noted that for 96,450 common, registered shares the representation and voting rights had been suspended, according to the provisions of article 50, paragraph 1, section A of Law 4548/2018, as own (treasury) shares of the Company and therefore the particular shares were not calculated for the formation of a quorum. The Annual General Meeting of the Company’s shareholders proceeded with the following decisions on the subjects of the daily agenda, as these decisions are presented based on the results of the voting process per agenda item, in accordance with the provisions of article 133, paragraph 2 of Law 4548/2018. The results of the voting process have also been posted on the legally registered website of the Company (http://www.flexopack .com). With regard to the 1st issue, the General Meeting unanimously approved the Annual Financial Statements (separate and consolidated) relating to the financial year 2023 (01.01.2023 - 31.12.2023) and, in overall, the annual Financial Report for that year, which was prepared in accordance with the provisions of the current regulatory framework and the requirements of the European Single Electronic Format and was published by the Company on the latter’s legally registered webpage in GEMI (General Electronic Commercial Registry) (http://www.flexopack.com ), and via dispatch to the website of the Organized Market where the Company’s shares are traded (http://www.athexgroup.gr ), as well as to the Hellenic Capital Market Commission. With regard to the 2nd issue, the Meeting unanimously approved the annual Management Report of the Board of Directors, which is entirely included in the Minutes of the Company’s Board of Directors of 23 rd April 2024, as well as the Audit Report as of 24 th April 2024, of the Chartered Auditor-Accountant of the Company, Mr. Eleftherios Koutsopoulos (SOEL Registration Number 44651), regarding the annual financial statements relating to the financial year 2023 (01.01.2023 - 31.12.2023). With regard to the 3rd issue, for which no resolution was required, the Company submitted and presented to the Shareholders’ Meeting, in accordance with the provisions of article 44 paragraph 1, section h’ of Law 4449/2017, as it is valid after its amendment by the article 74, paragraph 4 of Law 4706/2020, the Annual Report of the Audit Committee for the financial year 2023 (01.01.2023 - 31.12.2023), in order to fully, adequately and thoroughly inform the shareholders regarding the work of the Committee during the closing financial year. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 8 With regard to the 4th issue, the Meeting unanimously approved the allocation and distribution of the results of the financial year ended 31.12.2023 and in particular approved on the one hand the formation of the Company's ordinary and special reserves and on the other hand the distribution (payment) to the shareholders of the Company of a total amount of 1,765,916.10 Euros (gross amount), i.e. amount of 0.15 Euros per share (gross amount) from the earnings of the closing year 2023 (01.01.2023 - 31.12.2023). From the above amount, meaning the dividend paid, the proportional tax of 5% had been withheld and therefore the total payable amount of the dividend will settle at 0.1425 Euro per share. It is pointed out that the 96,450 treasury shares held by the Company were excluded from the payment of dividend and consequently the amount of the dividend corresponding to the treasury shares will increase the above dividend of all other shares in accordance with the article 50 of Law 4548/2018. Beneficiaries of the above dividend were appointed the shareholders of the Company registered in the files of the Dematerialized Securities System (DSS) on Wednesday, July 3, 2024 (record date). 2023 year’s dividend cut-off date was set for Tuesday, July 2, 2024, in accordance with the article 5.2 of the Athens Exchange Regulation. The payment of the dividend started on Monday, July 8, 2024 and was carried out based on the procedure provided by the Regulation of the Athens Exchange, Greece, by Societe Anonyme Banking Company "NATIONAL BANK OF GREECE SA". With this unanimous decision, the General Meeting of Shareholders provided the Company's Board of Directors with the necessary and required authorizations for the proper and timely implementation of the decision taken with regard to the distribution (payment) of a dividend. Finally with this majority decision, the General Meeting of Shareholders approved the payment-granting of fees from the profit of the year in accordance with article 109, paragraph 2 of Law 4548/2018, towards the members of the Board of Directors (excluding its independent non-executive members), since the above entitled persons with their intense, systematic and constant actions contributed substantially and decisively to a stronger extroversion for the Group, to promotion of the Company's business purposes and plans, to the implementation of the Group’s international investment plan, to the achievement of wider recognition, as well as to the significant advancement of the financial performance and financial ratios of both the Company and the Group despite the unfavorable external environment. With regard to the 5th issue, the Meeting unanimously approved, following a voting process from the shareholders based on name, the general administration performed by the members of the Board of Directors during the year ended on 31.12.2023 and the discharge of the Auditors of the Company from any liability stemming from their actions and the overall management of the closing financial year of 2023 (01.01.2023 - 31.12.2023), as well as of the annual financial statements of that year. With regard to the 6th issue, the Meeting approved unanimously and following the relevant proposal of the Audit Committee, the election of “Grant Thornton AUDITING FIRM CERTIFIED AUDITORS AND CONSULTANTS SOCIETE ANONYME”, registered in the Public Registry of article 14, Law 4449/2017 (SOEL Registration Number 127), for the ordinary audit of the annual and semi-annual financial statements (separate and consolidated) of the Company for the financial year 2024 (01.01.2024 - 31.12.2024). It is FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 9 noted that the above Auditing Firm will also undertake the process of issuing the annual tax certificate and the tax compliance report of the Company for the year 2024, in accordance with the provisions of article 65A of Law 4174/2013. Finally, through the same unanimous decision, the General Meeting of Shareholders granted the Board of Directors the relevant authorization to proceed to a final agreement with the aforementioned Audit Firm with regard to the latter’s remuneration for the works of the audit of the current fiscal year as well as of the issuance of a tax certificate. The authorization also allowed the Company to send a written notice and mandate to the elected Audit Firm within five (5) days from the date of the latter’s election. With regard to the 7th issue, the General Meeting approved by majority the remuneration, compensation and overall benefits paid and / or granted to the members (executive and non-executive ones) of the Board of Directors for the services provided to the Company and for their participation in the latter’s management during the closing fiscal year 2023 (01.01.2023 - 31.12.2023) in accordance with the approved and effective Remuneration Policy. With regard to the 8th issue, the General Meeting approved by majority the Remuneration Policy Report of the financial year 2023 (01.01.2023 - 31.12.2023), which was prepared in accordance with the provisions of article 112 of Law 4548/2018 and contains a comprehensive overview of the total remuneration of the members of the Board of Directors (executive and non-executive), including the Chief Executive and also provides explanation on the manner with which the Company implemented the respective Remuneration Policy for the immediately preceding financial year. With regard to the 9th issue, the Meeting approved by majority the remuneration, salaries, compensations and other benefits in general, which will be paid to the members of the Board of Directors during the current fiscal year 2024 (01.01.2024 - 31.12.2024), which are in harmonization and compliance with the relevant framework of the approved and current Remuneration Policy of the Company, while with the same unanimous decision it provided the relevant permission for advance payment of such fees to the above persons for the period until the next Ordinary General Meeting, in accordance with the provisions of article 109 of Law 4548/2018, as in force. With regard to the 10th issue, the Meeting unanimously approved the provision of authorization, in accordance with article 98 paragraph 1 of L. 4548/2018, to the members of the Board of Directors and the Managers of the Company to participate in the Board of Directors or the Management of Group Companies (existing and / or future), which pursue the same, related or similar purposes and to perform actions related to the business objectives of the Company. With regard to the 11th issue, in relation to which no decision was made, the Independent Non-Executive BoD Members' Report for the financial year of 2023 (01.01.2023 - 31.12.2023) was submitted to the body of shareholders in accordance with the provisions of article 9, paragraph 5 of Law 4706/2020, and was read accordingly. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 10 2. Establishment of Plan for the distribution of shares to the members of the Company's Board of Directors, managers and other executives, in the form of stock options The Board of Directors of the Company, during its meeting on July 12 th , 2024 and following the authorization provided by the Annual Ordinary General Meeting of shareholders on June 16 th , 2023, proceeded to establish a new plan for distribution of shares to the members of the Board of Directors, the managers and top executives of the Company, in the form of stock options (rights) to acquire shares. The above are in accordance with the current regulatory framework and specifically with the provisions of article 113 of Law 4548/2018. The maximum number of shares that can be granted under the above stock option plan is 83,400 shares. The plan consists of granting stock options to the participants, in order for the latter to acquire shares of the Company through their participation in a share capital increase at a fixed offering price, set at three (3.00) Euros per stock option. June 30 th , 2026 was set as the maturity date of the rights. The exercise of stock options and the deposit that must be made by the beneficiary of these rights will take place from 30.06.2026 to 20.07.2026. The Company will notify in time the beneficiaries of the corresponding bank account of the Company. In order to exercise the rights, a prior written notification of the beneficiary's intention to exercise the relevant right is required by March 31 st , 2026, i.e. three (3) months before the above maturity date. In accordance with the article 113, paragraph 3 of Law 4548/2018 after the exercise of stock options by the participants, the Board of Directors will issue and distribute the shares to the beneficiaries and will take a respective decision in relation to the Company's share capital increase by an amount equivalent to the value emerging from the rights that have been exercised. The Board of Directors will also take a relevant decision with regard to the certification of payment of the Company's share capital increase. The above decision was registered in the General Electronic Commercial Registry (GEMI) on June 17 th , 2024 with no. 3306748. By the decision of the Company's Board of Directors dated 20/06/2024, the beneficiaries were defined in accordance with the specific provisions of the Plan and stock options were granted for entire number of shares that may be authorized under the aforementioned Plan, namely for 83,400 shares of the Company. The evolution of exercise of the Stock Option Plan of the Company, according to the allocation program that the Company has established and is implementing, is depicted in the following Table. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 11 It is noted that the burden on the Company's financial results for the fiscal year 2024 from the above stock option plans amounted to 307 thousand Euros, of which 264 thousand Euros concerned members of the Board of Directors and 43 thousand Euros concerned executives of the Company. 3. Share capital increase of the subsidiary "FLEXOPACK INTERNATIONAL LIMITED" The Management of the Company proceeded within the fiscal year 2024 into a share capital increase by the amount of 1.5 million Euros in the fully owned (100%) subsidiary company "FLEXOPACK INTERNATIONAL LIMITED" based in Larnaca, Cyprus. From the above capital increase: a) an amount of 500 thousand Euros concerned the capital increase of the Group's subsidiary company based in Lyon, France, under the name "FLEXOPACK FRANCE" (in which the above Cypriot subsidiary holds 100% of the voting rights), as the latter (FLEXOPACK FRANCE) is in a phase of significant turnover growth and is in immediate need of financial support, and b) an amount of one (1) million Euros related to the granting of a loan to the company's subsidiary under the name "FLEXOPACK PROPERTIES PTY LTD" for the completion of the latter's new industrial building within its privately owned land plot located in Australia. 4. Loans granted by the company "FLEXOPACK INTERNATIONAL LIMITED" to the subsidiary company "FLEXOPACK PROPERTIES PTY LTD". The share capital increase carried out by FLEXOPACK in subsidiary company "FLEXOPACK INTERNATIONAL LIMITED", for a total amount of nine million (9,000,000) Euros, was approved in July 2023 and aimed at providing additional financing to the Brisbane-based Australian subsidiary of the Group under the name "FLEXOPACK PROPERTIES PTY LTD". The above financing allowed the latter to proceed with the construction of a new industrial building within its privately owned land plot located in Australia. Following the above, a loan was concluded and granted to the latter in June 2024 for a total amount of fourteen million (14,000,000) AUD and with duration of up to 20 years was. Also, in December 2024, "FLEXOPACK INTERNATIONAL LIMITED" granted an additional loan for a total amount of two (2) million Australian Dollars (AUD) and with duration of up to 20 years to "FLEXOPACK PROPERTIES PTY LTD", in order for the latter to complete the construction of the aforementioned new industrial building. 5. Participation in international exhibitions In the context of the Management’s efforts to further strengthen the Group's export activity, promote and market its products even more effectively in the international markets, the companies of the Group participated in the following exhibitions taking place during the fiscal year 2024: FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 12 In general, through participation in relevant international exhibitions, the aim is to increase the recognition of the Group's products, to strengthen the Company's international network, to achieve new partnerships and to expand the Group's presence both on a product and geographical level. 6. Issuance of tax certificate for the year 2023 The Company on October 23 rd , 2024, in application of the provisions of paragraph 4.1.1 of the Regulation (as it is in effect after the decision no. 201/15.04.2024 of the Governing Committee (G.C.) of Athens Exchange, approved by the decision no. 1019/21.5.2024 of Hellenic Capital Market Commission), of article 17, par. 1 of Regulation 596/2014 of the European Parliament and the European Council as at April 16, 2014 and of the Decision no. 25 (point 6) of the Governing Committee of the Stock Markets of the Athens Exchange, notified the investors’ community that, after the completion of the special tax audit for the fiscal year 2023 (tax year 2023) carried out by the statutory Auditors of the Company, in accordance with the provisions of article 65A of Law 4174/2013 as in effect today, a tax certificate was issued for the Company with a conclusion “without reservation”. Corresponding tax certificates with conclusion “without reservation” for the fiscal year 2023 (tax year 2023) were issued for the associate companies "INOVA SA" and "VLACHOU BROS SA". 7. Activity / Investment in the geographical region of USA The Company notified the investors’ community in October 2024 that its subsidiary company under the name "Flexopack USA INC.", which is fully owned by Cypriot subsidiary "FLEXOPACK INTERNATIONAL LIMITED" (100% controlled by the Company) signed a preliminary agreement to purchase a land plot of 80,000 square meters in Lebanon County, Pennsylvania, United States, with the purpose of studying, planning and subsequently developing and constructing production / industrial facilities in this area. In December 2024, the aforementioned subsidiary company completed the purchase process of the above land plot at an acquisition cost of 1.67 million US Dollars (USD). This new planned investment in production facilities by Flexopack Group aims to strengthen the Group's already significant presence in the United States market, by leveraging the experience and know-how that the Company has acquired over time. Through the above investment, the Company expects to achieve the fastest, most direct as well as most effective movement, service and supply of the entire US market. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 13 This investment project has an initial implementation time horizon of at least 4 years and it is estimated to account for 33 million US dollars in total. This investment will be financed by the Group’s own capital as well as by bank debt. Flexopack USA INC. has already received approval from the Commonwealth of Pennsylvania concerning a grant of five hundred thousand dollars ($500,000), while it also intends to apply for the Manufacturing Tax Credit program following the creation of full time employment positions, and also apply for the Rail Freight Assistance program of Pennsylvania, which provides financial support for investments in railway facilities of Pennsylvania Department of Transportation. 8. Issuance of a Common Bond Loan of total nominal value of € 20,000,000. The Company, following the decision of its Board of Directors dated 24/10/2024, proceeded to conclude the Common Bond Loan Coverage Agreement dated 13/11/2024 through private placement, in accordance with the provisions of Law 4548/2018 and Law 3156/2003, as in effect, with a total nominal value of twenty million Euros (€20,000,000). The above loan was covered in its entirety by the "National Bank of Greece", which was also appointed as Paying Agent and Representative of the Bondholders. The proceeds of the above Common Bond Loan will be utilized by the Company as follows: (a) for the full repayment of previous Common Bond Loans of 10,500,000 Euros, both of which were covered by "National Bank of Greece", and (b) an amount of 9,500,000 Euros was used to cover the Company's long-term working capital needs, in order to serve its business objectives and in particular its investment plan. 9. Issuance of a Common Bond Loan of total nominal value of € 8,000,000. The Company, following the decision of its Board of Directors dated 16/12/2024, proceeded to conclude the Common Bond Loan Coverage Agreement dated 19/12/2024 through private placement, in accordance with the provisions of Law 4548/2018 and Law 3156/2003, as in effect, with a total nominal value of eight million Euros (€8,000,000). The above loan was covered in its entirety by "EUROBANK SOCIETE ANONYME", which was also appointed as Paying Agent and Representative of the Bondholders. The proceeds of the above Common Bond Loan will be utilized by the Company as follows: (a) an amount of 892,890 Euros for the refinancing of an equal amount concerning a previous Common Bond Loan that had been covered by "EUROBANK ERGASIAS SOCIETE ANONYME" and (b) an amount of 7,107,110 Euros for the coverage of the Company's working capital needs. 10. Change of name of Serbia-based subsidiary company On February 2 nd , 2024, the competent local Authority approved the change of the name of the subsidiary company based in Belgrade from “FLEXOSYSTEMS DOO BEOGRAD” to “FLEXOPACK TRADE AND SERVICES DOO BEOGRAD”. The company name’s change was decided in the context of further solidifying the common recognition (both in terms of company names and distinctive titles) of all Group's subsidiaries. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 14 SECTION B’ Major risks and uncertainties Given its strong export activities and particularly its high extrovert strategy for many years now, the Group tends to operate within an intense competitive international environment. The Group’s general activities are associated with multidimensional financial and other risks, including exchange rate risk, interest rate risk, credit and liquidity risk. The basic risk management policies that the Group applies during the performance of its business activity are timely, duly and diligently determined via the most suitable and appropriate measures taken by its Management, in collaboration with the recommendation and assistance of the Company's Audit Committee. The overall risk management plan of the Group focuses on the fluctuations of the financial markets and aims to mitigate and also minimize the potential adverse effects of these fluctuations on the financial performance and results of the Group as a whole. The Group’s financial assets and financial liabilities mainly consist of cash & cash equivalents, trade receivables, loans and other receivables, bank loans, lease liabilities as well as liabilities towards suppliers and related liabilities. The Board of Directors is responsible for the effective and continuous monitoring of the Group’s exposure to business risks and in this context it acts with the aim of ensuring stability while at the same time facilitating the uninterrupted continuation of operations along with the further development and strengthening of the Company. The Management is responsible for the implementation of the Business Risk Management System in the entire spectrum of the daily life of the Company and broadly of the Group. In particular, the Management is responsible for the systematic identification and evaluation of risks that affect business activities and in addition, oversees the formulation and timely implementation of risk management plans. It regularly evaluates, along with the assistance of the Audit Committee, the effectiveness and the need to adjust the above risk management plans to achieve optimal management of such risks. I. Financial risks The most common financial risks which the Group is exposed to are the following: Α. Exchange Rate Risk The Group operates on a global level and realizes transactions in foreign currency, mainly: a) in U.S. dollar (U.S.D.), b) in Polish zloty (PLN), c) in Australian dollar (AUD) and in British Pound (GBP). The Group’s exposure to foreign exchange risk mainly emerges from existing or expected cash flows in foreign currency (exports-imports), as well as from investments in foreign countries under a different FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 15 currency (other than Euro) whose equity is exposed to exchange rate risk during the translation of their financial statements for consolidation purposes. The foreign exchange risk that emanates from transactions in foreign currency according to the above is effectively hedged with the use of placements in foreign exchange futures, depending on the needs each time. As at 31/12/2024, the Group did not held any foreign exchange futures instruments. The Group monitors on constant basis the movements of the above exchange rates. The particular risk, as consequence of the broader uncertainty that exists in the global environment which has an unavoidable impact on the fluctuation of exchange rates, is still present and may affect to a significant extent the results of the Group during the financial year 2025. A relevant analysis is presented in the note 5A of the annual Financial Statements, with regard to the breadth of the above effect. Β. Credit risk Credit risk is the possibility that a counterparty will cause financial loss to the Group and the Company in particular, due to the breach or even the violation of its contractual obligations. The maximum credit risk to which the Group and the Company are exposed, at the date of preparation of the financial statements, is the book value of their financial assets. At the preparation date of the present Report, the Group does not face any significant credit risk. Trade receivables stem from a wide and significantly dispersed client base, both from Greece and mainly from abroad. The Group’s turnover mainly consists of transactions with reliable and creditworthy firms and companies in general, with most of which it sustains a long-term collaboration and long-term relation of mutual trust in the majority of cases. It should be noted that the Group has established and applies systematically but also timely credit control procedures that aim at minimizing the existing bad debt. The Credit Control Department defines/sets credit limits per customer and specific sales and cash collection terms are applied, while possible security is requested when deemed necessary. To the greatest possible extent, the Group continuously and systematically monitors the performance and financial position of each customer, even very closely, in order to be pro-active and to evaluate the need to take specific and required measures per customer, according to the characteristics and difficulties of the market environment where each customer activates in. No doubtful debtors exist that have not been covered by provisions for doubtful receivables. It is also noted that the particular risk, although existent mainly due to the repercussions of the ongoing international uncertainty and instability as a result of the war conflicts occurring across the globe (on the one hand the war in Ukraine, and on the other hand the uncertainty in the broader Middle East region), is considered for the time being as relatively limited and controllable according to the historic evidence and FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 16 data possessed by the Group and in the context of the precautionary measures that have been taken as well as the procedures that have been established. It is noted that the potential credit risk exists in cash and cash equivalents as well. The particular risk may arise from a possible inability of the collaborating financial institution to meet its obligations towards the Group. For this purpose, the Group applies the proper and required procedures that limit its exposure to credit risk in relation to each financial institution which the Group collaborates with. A relevant analysis is presented in the note 5C of the annual Financial Statements. C. Liquidity risk In general, the monitoring of liquidity risk is focused on systematic monitoring and effectively managing cash inflows and outflows on a constant basis, in order for the Group to be able to smoothly and consistently meet its cash liabilities. Liquidity risk is maintained at low levels by holding and ensuring adequate cash balances, while it should also be noted that there are adequate unused credit lines with financial institutions in order to face any possible and temporary shortage in cash. Such case however, despite the especially unpredictable circumstances and conditions particularly seen in the domestic economy over the past years (such as debt crisis, health crisis and energy crisis among others), has not yet appeared. Taking into consideration, however, both the concerns regarding the deterioration of the economic conditions in the global market place, the significant (at least for the modern era) elevation of prices in the areas of energy, raw materials and food, as well as the course of the world economy mainly due to the effects of the war in Ukraine, but also due to the ongoing war in the broader Middle East region (especially in Gaza Strip), it cannot be ruled out that this risk may affect, to a controlled and manageable degree, the liquidity of the Group. A relevant analysis is presented in the note 5D of the annual Financial Statements. D. Cash flow risk due to changes in interest rates The Group's bank debt is of long-term nature and is mainly denominated in Euro currency, linked to Euribor interest rates plus a margin. The fact that interest rates have remained at relatively high but also rising levels, despite their reduction, has a negative impact on the Group's performance, financial results and cash flows as expected. The Group borrows at a floating interest rate and in order to hedge the respective interest rate risk, it utilizes interest rate swaps. In this context, the Group exchanges each time the difference between amounts corresponding to the agreed fixed interest rate and amounts corresponding to the Euribor related floating nominal interest rate (Note 6.32). FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 17 Within this framework and based on the above mentioned measures applied by the Company and broadly by the Group, the interest rate risk is currently considered relatively controllable. A relevant analysis is presented in the note 5B of the annual Financial Statements. ΙΙ. Other risks to which the Group is exposed Α. Risk arising from increased competition of foreign and domestic firms The competition in the international market where the Group and the Company activate is becoming constantly stronger. The Group based on the fully staffed, properly and well trained, specialized and fully equipped Research and Development Department that it owns, on the implementation of its investment plan in order to further enhance production capacity, and on the long-term presence in the sector it possesses, has already managed to differentiate its products from the current competition and to present qualitative diversified solutions. The high quality standards of the Group’s produced products, the strong recognition, and especially the brand name of the Group and the Company further contribute towards this direction. At the same time, it must be noted that the high cost of "entrance" into the specific market, in terms of investments required in high-tech mechanical equipment and subsequently in research and development costs, constitutes a factor that quells to a significant extent the above risk. Despite the above, the particular risk due to the stronger competition seen in the international environment, which the Company and the broader Group activates in, is real and exists as at the time of the preparation of this Report, and therefore it may affect to a certain extent the performance and the broader results of the Group during the current financial year 2025. Β. Risk of reduced demand due to consumption slowdown The Group is active in an intensive and competitive global environment. Its highly specialized know-how in conjunction with the research, development and creation of new innovative products and strong infrastructure in production equipment, assist the Group to remain competitive as well as expand or achieve its further penetration in new markets. The products of the Group are used mainly in food packaging which, since food is of first need, are usually affected the least from consumption slowdown, however they may be affected subsequently by external factors that may prevail in the markets in which the Group is active. Such external factors that may harm demand for the Group’s products include the probability of illnesses in meat products, the change in food and nutrition patterns, climate changes, a slowdown of the global economy etc. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 18 Given the fact that at the time of preparation of the present financial report, there is a weak consumer demand due to the intense inflationary pressures both in the Eurozone and globally, without any signs of reversal or even de-escalation, the particular risk is assessed as significant and therefore it might affect the Group's financial performance and financial results during the financial year of 2025. C. Risk related to the cost of production (a) risk of increasing raw material prices The Group is exposed to continuous price volatility of raw materials that it acquires internationally. This volatility may result from abrupt changes in oil production prices, other chemical products or other reasons. The Group, based on its experience and know-how, takes all the necessary and appropriate measures to ensure to the greatest possible extent the adequacy of raw materials as well as their sourcing under the best possible conditions. In order to reduce this risk, the Group’s inventory and commercial policy applied on a per case basis is adjusted accordingly in order to diversify and transfer part of this risk, to the extent that this is possible and according to the current conditions present each time as regards to competition. Following the above and taking into account the volatile and uncertain global economic environment, this risk in case of inability to substantially transfer the increase in the cost of raw material prices to the price of the final product, is assessed as particularly significant and may adversely affect the Group's broader results during the current year of 2025. b) risk of rising electricity prices. Electricity consumption is an important cost factor in relation to the Group's production activity. To address this risk and mitigate its negative consequences, the Group invests systematically in equipment with low electricity consumption. However, at the present time and based on the prevailing instability and volatility, the particular risk due to the constantly rising energy prices following the war conflict between Russia and Ukraine but also due to the disruptions observed in the South East European energy market (which in turn generates an unjustifiable competitive advantage for companies located in the Central and Northern Europe), is being assessed by the Company's Management as particularly important. In this context this type of risk might significantly affect the financial results and performance of the broader Group during the fiscal year 2025. D. Risks related to work safety Work safety for the Group’s employees is a top priority and necessary condition when attempting to operate its production facilities with normality. A plan that focuses on establishing a safety culture throughout all the Group’s activities and operations, as well as on targeting the constant training and education of the Company’s entire personnel is applied on a continuous and constant basis. Moreover, broad educational programs are applied to systematically and fully train and educate employees on FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 19 workplace safety and hygiene issues. The application of such programs is continuously reviewed by the Company’s relevant Department with the assistance of specialized professionals - Security Technicians with whom the Company collaborates on a permanent basis. E. Environmental risks Protection of the environment and sustainable development are fundamental principles for the Group. For this reason, the Group takes strict measures in the areas where it operates, which in several cases extend further than those imposed by law. The Group invests in best available techniques for protecting the environment, it closely and systematically monitors upcoming changes in environmental law, thoroughly examines and takes appropriate measures to comply with the applicable legislative and regulatory framework, operates its production units in a completely environmentally friendly manner and it ensures to take the necessary measures in advance so as to avoid any risk of not complying with the current legislative and regulatory framework. F. Risks related to climate change Climate change is a global environmental issue with implications that significantly affect human health, working conditions and safety at work. The optimal response to the risk of climate change comprises a fundamental commitment of the Group, which in addition to its legal obligation also considers this issue as a moral obligation to contribute actively and substantially to the efforts of both the international community and our country to combat climate change-related risks. The Group recognizes both the risks associated with the phenomenon of climate change, and its obligations in relation to the need for continuous improvement of its environmental performance. The mitigation of the effects of climate change affects inevitably and determines significantly the business strategy of the Group through the adoption and implementation of measures to reduce its environmental footprint and the systematic effort to use environmentally friendly sources of energy. The Group monitors and records on a systematic basis the environmental impact of its business activities and takes measures to reduce its environmental footprint. FLEXOPACK aims at the continuous reduction of carbon emissions which are mainly due to the consumption of electricity which is the main source of energy of the Company. The Group's vision is to continue to be one of the most important Greek companies with a strong international presence and with a parallel contribution to sustainable development. The desire of the Group is to enhance its long-term value through the production of technologically advanced products that meet the most demanding international standards along with quality, safety and sustainable development standards. In this context, the Group promotes and implements the familiar Sustainable Development Policy, which focuses especially on the following areas: - Demonstration of preparedness for emergencies, -application of emergency prevention, detection and management procedures, -design and construction of facilities aiming at the greatest possible energy savings, FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 20 -frequent maintenance and constant renewal and upgrade of the used mechanical equipment, in order to leave a low energy footprint, -continuous information, training and awareness raising of personnel on climate change issues, -integration into the system of recycling and alternative packaging management, in order to prevent the generation of packaging waste and the reuse, recycling and effective utilization of all materials, -selection of recyclable, if possible, raw materials with the lowest possible energy footprint, -application of technologies for reduction of direct and indirect emissions of greenhouse gases from energy consumption, -monitoring of the policy followed by the Group suppliers regarding the implementation of procedures for dealing with climate change and the use of renewable energy sources along with the provision of relevant recommendations and suggestions, where necessary, -building relationships of trust with the local communities in which the Group develops its business activities; continuous care to minimize the inconveniences caused. G. Risk related to current developments in Ukraine and the wider Middle East region. Τhe war in Ukraine, created geopolitical instability and unsustainable repercussions on the global economy, due to the large increases in energy prices, raw materials, industrial metals and other consumer goods. It is noted that the Group has no significant business exposure to the countries involved in the war conflict and therefore no material impact (direct or indirect) exists on its business activities in relation to the above developments. The Group's sales to Ukraine during the fiscal year 2024 amounted to 0.12% of the consolidated turnover, compared to 0.06% in the previous fiscal year 2023, whereas no sales were recorded in Russia and therefore no material (direct or indirect) impact exists currently on the Group's activities, results, financial position and performance in relation to this market. At the present time, it is very uncertain and precarious for the Group to proceed with any prediction regarding the impact of the ongoing war conflicts both in the region of Ukraine and in the region of Israel as well as their subsequent side effects. However, especially in relation to the crisis in the Middle East, there is concrete evidence of de-escalation. The crisis in the broader region of Middle East has generated significant transportation issues across the area of Suez Canal and therefore it is quite difficult for the Group’s products to access the international markets, mainly in Australia. This development has significantly lengthened delivery times and has generally created problems in terms of the supply chain affecting at the same time the respective transportation cost. In order to maintain its supply chain as active as possible, the Company has taken all the necessary measures such as utilizing air transport instead of sea transport. This option, however, has resulted into a significant increase of transport costs. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 21 SECTION C Significant transactions with related parties This section includes transactions that took place during the year 2024 between the Company and its related parties, as defined in the International Accounting Standard (IAS) 24. In particular, the amounts of sales and purchases, the balances of receivables and liabilities as well as explanatory notes are included. The most significant transactions are presented in the following table. Notes: It is also noted: 1. No other transactions related to the Company parties exist according to the provisions of the International Accounting Standard 24 apart from the above-mentioned. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 22 2. No loans or any other credit facilitations, except for current transactions, have been granted to the Board members or other senior executives of the Company and their families. 3. It is specifically noted for purposes of completeness that with regard to the natural persons - members of the Board of Directors and executives of the Company, the above remuneration includes also fees granted of 450 thousand Euros from the profit of the financial year 2023 paid to the members of the Board of Directors (excluding the independent non-executive members), as well as the stock option benefits mentioned in Point 2 of Section A of this Report. With the exception of the above, there are no other transactions between the Company and the executives and members of the Board of Directors. 4. There were no changes in the transactions between the Company and its related parties that could have a material impact on the Company's financial position and performance for the period 1/1/2024- 31/12/2024. 5. The Company has provided a guarantee to a credit institution based in Poland in favor of its subsidiary company "FLEXOPACK POLSKA Sp. Zo.o" amounting to 6.138 million Euros to ensure the repayment of loans that have been granted to the subsidiary company. 6. The Company has also provided a guarantee towards a banking institution in favor of its subsidiary "FLEXOPACK PTY LTD" based in Australia, with a maximum guarantee amount of approximately 65,000 Euros 7. The Company has provided a guarantee for good execution to Lebanon County, Pennsylvania, in favor of its subsidiary, “FLEXOPACK USA INC.” which is based in the United States, for the amount of 1,882,903.68 US Dollars (USD). 8. The subsidiary “FLEXOPACK INTERNATIONAL LIMITED” has granted 2 loans with duration of 20 years and for a total amount of sixteen million (16,000,000) Australian Dollars (AUD) to its subsidiary “FLEXOPACK PROPERTIES PTY LTD” based in Brisbane, Australia, in order for the latter to proceed with this financing in the construction of a new industrial building in Australia. 9. The transactions described above have been carried out under normal market conditions and do not contain any exceptional, favorable or special features, which would make necessary additional analysis per related party. 10. There is no separate transaction that is assessed as significant, within the meaning of Circular number 45/2011 of the Hellenic Capital Market Commission. 11. The Company's transactions and outstanding balances with subsidiaries have been eliminated from the consolidated financial statements. The transactions that took place during the previous fiscal year 2023 are shown in note 6.29 of the annual Financial Statements. SECTION D’ Development, performance and financial position This section includes a brief review of the development, performance, activity and position of the Group and the Company. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 23 Α. Statement of Financial Position Items (in thousand Euro) of the Statement of Financial Position for the year 2024 are presented below along with the most important changes that occurred versus the corresponding year of 2023. The most important changes in the consolidated statement of financial position as of 31/12/2024 compared to the corresponding period of 31/12/2023 are as follows: A. Increase in total bank debt by 12.028 million Euros due to the collection of new loans by FLEXOPACK amounting to 28.000 million Euros (Notes 6.15 and 6.33). B. Increase in tangible assets by 15.560 million Euros (Note 6.1) The Group's total liabilities on 31/12/2024 amounted to 92.381 million Euros, the equity amounted to 131.154 million Euros and the cash and cash equivalents settled at 38.416 million Euros. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 24 Β. Items of statement of income Items of the statement of income for the year 2024 are presented below, along with the most significant changes from the items of the statement of income for the year 2023. The following are noted with regard to the above items of the consolidated statement of income concerning the period 1/1/-31/12/2024 versus the previous financial year 2023. Consolidated sales amounted to 156.593 million Euros, posting an increase of 2.3%. Gross profit amounted to 39.338 million Euros, settling lower by 6.3%. Operating profit amounted to 13.505 million Euros, posting a decrease of 31.9%, mainly due to the increase in operating expenses and specifically: a) payroll costs due to an increase in personnel (Note 6.21), b) energy costs and c) export related transportation costs, due to restrictions / bans on transit through Suez Canal, as a result of Middle East crisis. Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to 20.658 million Euros, posting a decline by 19.8%. Earnings before taxes accounted for 14.063 million Euros, recording a drop of 26.2%. Earnings after taxes amounted to 10.675 million Euros, decreased by 29.3%. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 25 C. Items of the Statement of Cash Flows The following table depicts the items of the cash flow statement for the year 2024 compared to the corresponding cash flow statement for the year 2023. D. Financial Ratios The major financial ratios are presented below. STATEMENT OF CASH FLOWS EUR THOUS. GROUP COMPANY 1/1-31/12/2024 1/1-31/12/2023 1/1-31/12/2024 1/1-31/12/2023 Net cash flows from operating activities 10,676 28,080 3,469 24,692 Net cash flows from investment activities (19,968) (13,779) (6,136) (16,287) Net Cash flows from financing activities 7,613 2,302 9,138 (681) Net (decrease)/ increase in cash and cash equivalents (1,679) 16,602 6,471 7,724 Cash and cash equivalents at the beginning of the period 39,955 23,772 24,418 16,694 Effect from foreign exchange differences 140 (419) 0 0 Cash and cash equivalents at the end of the period 38,416 39,955 30,889 24,418 Financial Ratios GROUP COMPANY 31/12/2024 31/12/2023 31/12/2024 31/12/2023 Explanation Capital Structure 58.7% 61.3% 60.5% 64.7% Total Equity / Total Assets Liquidity Ratio 2.8 3.0 3.1 2.9 Total Current Assets / Total Short-term Liabilities Profit Margin 9.0% 12.4% 10.7% 9.6% Earnings before Taxes / Total Turnover Return on Equity 10.7% 15.7% 11.0% 10.0% Earnings before Taxes / Total Equity FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 26 Ε. Alternative Performance Measures (APM) The Alternative Performance Measure (APM) constitutes a financial ratio or an indicator measuring the historic or future financial performance with regard to the financial position or the cash flows. The APM is not stipulated or required by the existing framework of Financial Information (IFRS). The general principle of the Group is to present the particular alternative performance measures in a clear and transparent manner so that these indicators are appropriate and useful for decision making purposes by the readers of the financial statements. The APM should be taken into consideration always in conjunction with the financial results that have been prepared in accordance with the IFRS and in no case should function as alternative ones. The Management monitors the following alternative performance measures. a) Capital Management The goals of the Group with regard to the capital management refer to the uninterrupted course of its business activities, the assurance of the financing of investment plans and the optimal allocation of capital targeting the reduction of cost of capital. For the purposes of capital management, the Group systematically monitors the ratio: “Net debt to Total employed capital”. The net debt is calculated as the total short-term and long-term interest-bearing liabilities minus the total cash and cash equivalents. The total capital employed is calculated through the sum of the net bank debt and the total equity. For the fiscal years ended on 31 st December 2024 and 2023 respectively, the particular ratio settled as follows: The Group may affect its capital structure via the repayment or the collection of additional bank debt, through share capital increase or return of capital to shareholders, and via the distribution or not of EUR THOUS. 31/12/2024 31/12/2023 31/12/2024 31/12/2023 Long-term debt obligations 43,055 32,259 38,829 27,191 Short-term bebt obligations 8,110 6,878 6,148 4,861 Total bank debt 51,165 39,137 44,977 32,052 Liabilities for Leases 1,169 1,128 751 643 Total Bank Debt 52,334 40,265 45,728 32,695 Minus : Cash and cash equivalents 38,416 39,955 30,889 24,418 Net Bank Debt (1) 13,918 309 14,839 8,277 Total Equity (2) 131,154 121,386 115,821 107,535 Total Employed Capital (1)+(2) 145,072 121,695 130,660 115,812 Net Bank Debt / Total Employed Capital 9.6% 0.3% 11.4% 7.1% Group Company FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 27 dividends and through other distributions. b) Earnings before interest, taxes, depreciation and amortization (EBITDA) For the fiscal years ended on 31 st December 2024 and 2023 respectively, the particular figure settled as follows: SECTION E Analytic information, according to article 4, par. 7 of Law 3556/2007, as currently in effect and following its amendment pursuant to Law 5164/2024, and respective explanatory Report According to article 4 par. 7 of Law 3556/2007, as it is currently in effect, the Company is obliged to disclose analytic information in the present Report, as regards to a number of issues. Therefore, in compliance with the relevant legal provision, the following are disclosed: 1) By virtue of the decision of the Board of Directors of the Company from 21/04/2023 and in the context of the annual implementation of the Stock Option Plan approved by the Annual Ordinary General Meeting of shareholders on 29 June 2018 that concerned the granting of stock options to selected executives of the Company as well as its affiliated companies, the Company's share capital increased by the amount of €40,068 via the issuance of 74,200 new ordinary, registered shares carrying voting rights, with a nominal value of fifty four cents (€ 0.54) per share and an offering price of three Euros (€ 3.00) per share. The difference between the offering price of the above new shares and the nominal value, i.e. € 182,532 was recorded to the “share premium reserve account”. Following the above, the Company's share capital as of today amounts to 6,409,380.96 € and is divided into 11,869,224 common, registered shares, with a nominal value of 0.54 € per share. EUR THOUS. GROUP COMPANY 1/1- 31/12/2024 1/1- 31/12/2023 1/1- 31/12/2024 1/1- 31/12/2023 # Note Operating Profit 13,505 19,834 12,746 12,612 Statement of Income Depreciation of tangible fixed assets 6,150 5,008 4,282 3,531 Cash Flow Statement Amortization of intangible assets 333 415 333 415 Cash Flow Statement Amortization of right-of-use assets 669 517 351 264 Cash Flow Statement EBITDA 20,658 25,773 17,711 16,822 FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 28 It is also noted that the relevant amendment of article 5 of the Company's Articles of Association as a result of the above decision of the Board of Directors was recorded in the General Commercial Registry (GEMI) on 03/05/2023 with Registration Code Number 3584695. The above was accompanied with a protocol number 2952748/03.05.2023 announcement of the Ministry of Development and Investments (General Secretariat of Trade - General Directorate of Market & Consumer Protection - Directorate of Companies - Department of Listed Societe Anonyme Companies). All Company's shares (dematerialized common registered shares) are listed and traded on the regulated market of the Athens Stock Exchange, Greece. Each share includes all the rights and obligations defined by law and the Company’s Articles of Association. Ownership of a share automatically implies the complete and unreserved acceptance of the Company’s Articles of Association and of the decisions made in accordance with law and the Company’s Articles of Association, by the pertinent bodies of the Company. Each share provides one (1) voting right. 2) There are no limitations as regards to the transfer of Company shares, stipulated by either the company’s Articles of Association or specific agreements, or other regulatory provisions etc., except for limitations emanating from four (4) existing Agreements of Subordinated Bond Loans issued by the Company. More specifically and according to two of the Bond Loan Agreements, the Ginosati family aggregately should own a percentage of at least 34% of the Company’s paid up share capital in order to maintain the capacity of a “Controlling Majority”. With regard to the other two Bond Loan Agreements, it is required that the shareholder structure of the Company in terms of the controlling majority must not be changed, directly or indirectly. 3) The Company’s main participations (direct and indirect) are as follows: (a) FLEEXOPACK POLSKA Sp.z.o.o: foreign Company domiciled in Poland. The Company now holds 100% of shares and voting rights, (b) FLEXOPACK TRADE AND SERVICES DOO BEOGRAD, foreign company, based in Serbia. The Company holds 100% of shares and voting rights, (c) «FLEXOPACK INTERNATIONAL LIMITED»: Foreign company domiciled in Larnaca, Cyprus, fully owned by the Company (100% of the total shares and voting rights), (d) «FLEXOPACK PTY LTD»: Foreign company domiciled in Brisbane, Australia, fully owned (100%) by the subsidiary «FLEXOPACK INTERNATIONAL LIMITED» (indirect participation of the Company), (e) «FLEXOPACΚ PROPERTIES PTY LTD»: Foreign company domiciled in Brisbane, Australia, fully owned (100%) by the subsidiary «FLEXOPACK INTERNATIONAL LIMITED» (indirect participation of the Company), (f) « FLEXOPACK ΝΖ LIMITED »: Foreign company domiciled in Auckland, New Zealand, fully owned (100%) by the subsidiary « FLEXOPACK PTY LTD » (indirect participation of the Company). (g) «FLEXOPACΚ TRADE AND SERVICES UK LIMITED»: Foreign company domiciled in Norwich, UK, fully owned (100%) by the subsidiary «FLEXOPACK INTERNATIONAL LIMITED» (indirect participation of the Company), (h) “FLEXOPACK FRANCE”: a foreign company based in Lyon, France, which is also 100% owned by the subsidiary "FLEXOPACK INTERNATIONAL LIMITED" (indirect participation of the Company) FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 29 (i) FLEXOPACK USA INC.: foreign company domiciled in the state of Delaware, USA, fully owned (100%) by the subsidiary «FLEXOPACK INTERNATIONAL LIMITED» (indirect participation of the Company), (j) FLEXOPACK IRELAND LIMITED: foreign company domiciled in Dublin, Ireland, fully owned (100%) by the subsidiary «FLEXOPACK INTERNATIONAL LIMITED» (indirect participation of the Company), (k) INOVA PLASTICS SA: Domestic company in which the Company holds 50% of shares and voting rights, (l) VLACHOU BROS SA: Domestic company in which the Company holds 47.71% of shares and voting rights, Furthermore, regarding the direct or indirect significant holdings in the voting rights of the Company, within the meaning of articles 9 to 11 of law 3556/2007, as they are currently in effect, and on the basis of the relevant notifications received by law (and the MAR) in the Company on behalf of the shareholders, these have as follows: (I) Stamatios Ginosatis: 30.64% (direct participation) It is noted that on 19.12.2013, Mr. Stamatios Ginosatis transferred under the cause of selling, the bare ownership of 1,609,933 common, registered Company shares to Mr. Dimitrios Ginosatis, while at the same date, he transferred, also under the cause of selling, the bare ownership of 1,609,933 common, registered shares to Mr. Spyridon Ginosatis. Mr. Stamatios Ginosatis retained the lifetime usufruct of all of the transferred shares, i.e. of 3,219,866 shares, which includes the voting rights and the right to receive the corresponding dividends. (II) George Ginosatis: 17.36% (direct participation) It is noted that on 19.12.2013, Mr. George Ginosatis transferred, under the cause of selling, the bare ownership of 881,787 common, registered shares to Ms. Stamatina Ginosati, while at the same date, he transferred, also under the cause of selling, the bare ownership of 881,787 common, registered shares to Ms. Catherine Ginosati. Mr. George Ginosatis retained the lifetime usufruct of all the transferred shares, i.e. of 1,763,574 shares, which includes the voting rights and the right to receive the corresponding dividends. 4) There are no shares, which provide special control rights. 5) To the Company’s knowledge, no restrictions on voting rights exist for the Company’s shareholders. However, the notes presented in 3) (I) (II) and (III) with regard to the beneficial interest of the major shareholders are highlighted. 6) To the Company’s knowledge, there are no agreements between shareholders that imply limitation on the transfer of shares or limitations on the exercise of voting rights. 7) As regards to the appointment and replacement of the Company’s Board members and concerning the amendment of the Company’s Articles of Association, there are no rules that differ than those stipulated in L. 4548/2018, as such is in effect today. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 30 8) There is no permanent special authorization of the Board of Directors or certain members to issue new shares or purchase own shares, according to article 49 of law 4548/2018. The relevant competence and authority is provided to the Board of Directors of the Company by decision of the General Meeting of its shareholders. The Annual Ordinary General Meeting of the Company's shareholders on June 16, 2023 decided, among other things, in accordance with the provisions of article 49 of Law 4548/2018, as in force, the purchase by the Company within a period of twenty-four (24) months from the date of the above decision, i.e. until 16/06/2025, of a maximum percentage of 10% of the Company's existing shares (with the above limit including the entire number of treasury shares that the Company already held in the context of a previous share repurchase program). The respective range of purchase price was set between three Euros (3.00 €) per share (minimum limit) and eight Euros (8.00 €) per share (maximum limit). At the same time, the Meeting provided to the Board of Directors of the Company the authorization for the proper implementation of the above share repurchase plan. The above decision was registered in the General Electronic Commercial Registry (GEMI) on July 3 rd , 2023 under registration no. 2992279. At the time of preparation of the current Report, the Company owned 96,450 treasury shares of nominal value of € 0.54 per share, acquired on 22.07.2020 through an over-the-counter transaction (OTC) with an average purchase price of four Euros (4.00 €) per share, within the framework of the share repurchase plan that had been approved by the Annual Ordinary General Meeting of shareholders of June 26, 2020. The Company’s treasury shares correspond to a percentage of 0.81% of the total share capital. 9) There is no significant agreement contracted by the Company, which becomes in effect, is amended or terminated in case of change in the Company’s control following a tender offer, with the exception of: (a) the signed agreement dated 24/11/2022 for the coverage of the Common Bond Loan between the Company and “EUROBANK SOCIETE ANONYME”, which provides for the right of Bondholder to denounce the loan “if the majority that currently controls the Issuer ceases to have control over the legal entity of the Issuer or the Group to which it belongs”. (b) the signed agreement dated 9/6/2022 for the coverage of the Common Bond Loan between the Company and “ALPHA BANK SOCIETE ANONYME” (Trustee or Agent of the payments), which provides for the right of the Bondholder to denounce the loan “if the Issuer’s current shareholding structure is altered, directly or indirectly, as regards to the “controlling majority”. (c) the signed bond agreement dated 15/11/2024 between the Company and the National Bank of Greece SA; (a representative of the Bondholders and the attorney-at-law of payments), which also provides for the right of the Bondholder to terminate "if the percentage of participation in the paid-up share capital of the Issuer belonging to the Ginosatis family is less than 34% of that with the voting rights". (d) The signed, on 19.12.2024, agreement for the coverage of the common Bond Loan between the Company and “EUROBANK ERGASIAS S.A.” (representative of the Bondholders and Trustee of the FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 31 payments), which provides for the right of the Bondholder to denounce the loan if the majority that currently controls the Issuer ceases to have control of the Issuer's legal entity. The aforementioned terms (terms of change in control) are absolutely common practices and are included in all Common Bond Loans which are covered or subscribed by the banking institutions (in fact the controlling majority is usually defined as over 50%). 10) There is no agreement between the Company and the Board members or employees, which provides for indemnity in case of resignation or termination of employment without reason or termination of employment term or their employment emanating from any public tender offer. 11a) Pursuant to the decision of the Company's Board of Directors dated 10/07/2023 and within the framework of authorization granted by the Annual Ordinary General Meeting of Shareholders of June 16 th , 2023, the Company determined the specific terms of the Stock Option Plan for the members of the Board of Directors, for the management team and the Company's personnel in general. The above decision was registered in the General Electronic Commercial Registry (GEMI) on July 14, 2023 under file no. 3001686. 11b) Pursuant to the decision of the Company's Board of Directors dated 12/06/2024 and within the framework of authorization granted by the Annual Ordinary General Meeting of Shareholders of 16 June 2023, the Company defined the most specific terms and conditions of the Stock Option Plan granted to the BoD members, the managers and the personnel of the Company in general. The above decision was recorded in GEMI on 17/06/2024 under the registration number 3306748. Explanatory report regarding the information, prepared according to the article 4 par. 8 L. 3556/2007 as currently in effect The numbering in the present explanatory Report (which is prepared according to article 4 par. 8 of L. 3556/2007) follows the respective relevant numbering of information of article 4 par. 7 of L. 3556/2007, as such information is presented above: 1. The structure and form of the Company’s share capital is presented in detail in article 5 of the Company’s Articles of Association. The Company’s shares were listed on the Athens Exchange on April 2 nd 1996 and since then are traded without interruption. 2. No such limitation is imposed either by law, either by the company’s Memorandum of Association, or by any other agreement, apart from the common Bond Loan Agreements, analytical reference to which is made also in Section E.9 of the present report. 3. Data regarding the number of shares and voting rights owned by individuals with significant participations, have been presented according to the relevant disclosures notified according to law (and the MAR – Market Abuse Regulation) to the Company, on behalf of shareholders. 4. There are no other categories of shareholders, namely there are only common registered shares with voting rights. 5. No such limitations have been notified to the Company. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 32 6. Likewise no such agreements have been notified to the Company. 7. In the particular matters, the Company's Articles of Association do not deviate from the provisions of Law 4548/2018 as it is currently in force. 8. The Annual Ordinary General Meeting of the Company's shareholders on June 16, 2023 granted authorization to the Board of Directors, in accordance with the provisions and limitations of article 49 of Law 4548/2018, as in force, with regard to the purchase by the Company, within a period of twenty-four (24) months from the date of the above decision, of a maximum percentage of 10% of the Company's existing shares (with the above limit including the entire number of treasury shares that the Company already held in the context of a previous share repurchase program). The respective range of purchase price was set between three Euros (3.00 €) per share (minimum limit) and eight Euros (8.00 €) per share (maximum limit). At the time of preparation and approval of the current Report, the Company owned 96,450 treasury shares. 9. In the lack of such agreements, apart from those mentioned, no clarification is deemed necessary. 10. Likewise, in the lack of such agreements no clarification is deemed necessary. SECTION F’ Other information, Treasury shares, Events after the end of the year 2024 1. None of the Group's companies have branches, except for the parent Company, whose old building located opposite the new industrial plant is considered as a branch. No transfer of the head office of any of the Group's businesses took place during the 2024 financial year, nor was a relevant decision taken regarding the opening or operation of any branch. 2. None of the companies participating in the consolidation has shares of par. 1e of article 26 of Law 4308/2014, except for the parent Company, which currently owns 96,450 own shares, with nominal value of EUR 0.54 per share, acquired in accordance with the more specific regulations and provisions of Treasury share purchase program, which was approved by the Annual Ordinary General Meeting of shareholders on June 26, 2020. 3. There are no other significant events that took place after the end of the 2024 fiscal year and up to the date of preparing of this Report and which are worthy of special mention and reference in this report. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 33 SECTION G’ CORPORATE GOVERNANCE STATEMENT CONTENTS INTRODUCTION 1. CORPORATE GOVERNANCE 1.1 Concept 1.2 Regulatory framework for corporate governance 2. GREEK CORPORATE GOVERNANCE CODE 2.1 Notification of voluntary compliance of the Company with the Corporate Governance Code 2.2 Deviations from the Corporate Governance Code and their justification. Special provisions of the Code that the Company does not apply and an explanation of the reasons for non-implementation 2.3 Corporate governance practices applied by the Company in addition to the provisions of the law PART A – BOARD OF DIRECTORS Ι. Role and responsibilities of the Board of Directors ΙΙ. Size and composition of the Board of Directors ΙΙΙ. Operation of the Board of Directors ΙV. Information regarding the current Board of Directors PART B – COMMITTEES Ι. Audit Committee ΙΙ. Remuneration and Nomination Committee PART C- GENERAL MEETING PART D – INTERNAL CONTROL AND RISK MANAGEMENT SYSTEM Ι. Internal Control ΙΙ. Risk Management PART E – CORPORATE GOVERNANCE SYSTEM PART F- ADDITIONAL INFORMATION PART G – SPECIAL STATEMENTS FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 34 INTRODUCTION 1. CORPORATE GOVERNANCE 1.1 Concept According to the Corporate Governance Principles of the Organization for Economic Cooperation and Development (OECD), corporate governance means the system of relationships established between the Company's Management, shareholders, employees and any other interested party, and aims at the creation, development and viability of strong, healthy and competitive businesses. As a set of principles, corporate governance is in fact a matter of self-regulation, namely it is not limited to the application of mandatory, by laws, clauses and regulations, but is based on the voluntary acceptance and application of rules understood as specific practices. Based on these rules, the management is exercised, monitored, organized and controlled, the corporate operations are performed, the relations with the shareholders and the external agents (shareholders, suppliers, customers, public administration, etc.) that are interconnected with the Company are formed, the achievement of objectives that have been set, identified and managed real or potential risks. The promotion of corporate governance principles aims to increase the credibility of the Greek capital market towards international and domestic investors, to further enhance transparency, improve the competitiveness of Greek companies and strengthen their internal operating structures. In addition, a framework of good and adequate corporate governance can, through the consolidation of trust in the business environment, bring together, in an effective and beneficial way, the interests of business, citizens and society. 1.2 Regulatory framework for corporate governance In our country, the corporate governance framework for societe anonyme companies, whose securities are listed on a regulated market, consists on the one hand in the adoption of mandatory law, on the other hand in the application of corporate governance principles, as well as in the adoption of best practices and recommendations through self-regulation. Specifically, this framework includes: (a) Law 4706/2020 (Government Gazette A 136/17.07.2020), with the provisions of which the legislative framework for corporate governance was substantially revised and updated, taking into account the changes in the legislative and regulatory framework governing the action of listed companies at EU level, during the intervening period since the introduction of Law 3016/2002 (original legislation on corporate governance) and until the enactment of the above law, as well as current trends in corporate governance. In particular, the new regulations of the above legislative act (Law 4706/2020) --which is constantly reviewed and evaluated-- seek to substantially upgrade the required organizational structures and corporate governance procedures of societe anonyme companies, so that they, on the one hand, meet the increased demands of the modern capital market, and on the other hand, not to affect the functional and decisive autonomy of the business entity. The aim of the above legislation is to consolidate good and FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 35 effective governance practices and consequently to strengthen the confidence of shareholders or their prospective shareholders. (b) the executive decisions, circulars and recommendations of the Hellenic Capital Market Commission issued under the authority of the above law; (c) certain provisions of Law 4548/2018 as currently in effect and (d) the principles, best practices and recommendations of self-regulation, incorporated in the new Greek Code of Corporate Governance (GCCG), which was drafted by the Hellenic Corporate Governance Council (ESED) in June 2021 and replaced the Code in force since October 2013. 2. GREEK CORPORATE GOVERNANCE CODE 2.1 Notification of voluntary compliance of the Company with the Corporate Governance Code The Company, in full compliance and alignment with the provisions of article 17 par. 1 of law 4706/2020, proceeded under the relevant decision of its Board of Directors dated 16.07.2021 to the adoption and implementation of the new Greek Corporate Governance Code (available at https://www.esed.org.gr ), into which (Code) states that it is subject to the following detailed deviations and exceptions. 2.2 Deviations from the Corporate Governance Code and their justification. Special provisions of the Code that the Company does not apply and an explanation of the reasons for non-implementation The central goal of the current Greek Corporate Governance Code (hereinafter for abbreviation purposes referred to as "Code" or "CGC") is the creation of an accessible and comprehensible reference guide, which sets in a codified way in a single text, high (higher than mandatory) requirements and specifications of corporate governance. In particular, the Code does not address issues that constitute mandatory legal provisions (laws and regulative decisions); on the contrary, it establishes principles beyond the mandatory framework of corporate governance legislation and addresses issues that either: (a) are not regulated by law, or b) are regulated, but the current framework allows selection or derogation, or (c) are regulated to their minimum content. In these cases, the Code either complements the mandatory provisions, or introduces stricter principles, drawing on experience from European and international best practices, always guided by the characteristics of Greek business and the Greek stock market. The Code is implemented based on the "Comply or explain" principle. This principle requires companies that apply the Code to either comply with all of its provisions, or to justify the reasons for their non- compliance with its specific special practices. The explanation of the reasons for non-compliance should not be limited to a simple reference to the practice with which the Company does not comply, but should be justified in a specific, definite, comprehensible, substantive and convincing manner. The Company first confirms with this Statement that it faithfully and strictly applies the current provisions of Greek legislation regarding corporate governance, as in force today (Law 4706/2020, Law 4548/2018 and Law 4449/2017). FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 36 However, in relation to the specific practices and principles established by the Code, there are currently some deviations (including the case of non-application), for which deviations an analysis follows and explanation of the reasons justifying them. In particular, the existing deviations in relation to the specific practices and principles established by the Code are the following: ➢ The Board of Directors has not adopted Rules of Operation, which at least describes the way it meets and makes decisions and the procedures it follows. This deviation is explained by the fact that the provisions of the Articles of Association and the Internal Operating Regulation of the Company in combination with the existing legal framework (Laws 4548/2018 and 4706/2020) are considered sufficient, reasonable and satisfactory for the general organization and operation of the Board of Directors, ensure the full, correct, efficient and timely fulfilment of its duties and the adequate consideration of all issues on which it is called to take decisions and form a flexible and effective framework of meetings and decision-making. ➢ At the beginning of each calendar year, the Board of Directors does not adopt a meeting calendar and an annual action plan, which is revised according to the developments and needs of the Company. This deviation is reasonably understood by the fact that all the members of the Board of Directors of the Company are residents of the Attica prefecture and therefore it is easy to convene and meet the Board of Directors, whenever the needs of the Company or the law impose, without the existence of a predetermined strict action plan. Furthermore, in the current Articles of Association of the Company there is now an explicit provision for the possibility of a meeting of the Board of Directors via teleconference, with respect to some and/or all its members, a practice which the Board of Directors applies whenever necessary, and therefore it becomes possible to convene it immediately, whenever it is necessary and appropriate, in order to properly address and resolve the issues that arise and take appropriate decisions. ➢ The Chairman is not elected by the independent non-executive members. Although the Chairman is elected by the non-executive members, it is not appointed one of the independent non- executive members either as Vice-Chairman or as a Senior Independent Director. This deviation is justified by the desire of the Company's Management not to further burden the independent non-executive members of the Board of Directors with additional duties and responsibilities, due to the important role they are called to play in the special Committees in which they participate (Audit Committee and Remuneration and Nomination Committee). After all, the appointment of an independent non-executive member as Vice-Chairman would make it necessary for him/her to provide daily and substantial assistance to the Chairman of the Board, especially during the process of organization and operation of the Board, which may be a deterrent factor regarding the need and obligation of the independent non-executive member to devote sufficient and necessary time in the performance of his/her other duties. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 37 ➢ The maturity of the options is defined in a period of less than three (3) years from the date of their granting to the executive members of the Board of Directors. This deviation is limited and insignificant as the period of maturity of the options is not much shorter than that provided by the Code, while at the same time the number of options is quantitatively limited. ➢ The contracts of the Board of Directors’ executive members do not provide that the Board of Directors may demand the return of all or part of the bonus awarded, due to breach of contract terms or inaccurate financial statements of previous years or generally based on incorrect financial data used for calculation of this bonus. This deviation is justified by the fact of non-payment of variable remuneration (bonus) to the executive members of the Board of Directors, namely remuneration which is related to the achievement of performance goals of both the executive members and the Company. In any case, the Financial Management of the Company takes all the necessary measures, in order for any rights to receive extraordinary remuneration (bonus) to mature and be paid only after the audit and final approval of the annual financial statements and to avoid the phenomenon of bonus payment based on incorrect or inaccurate financial statements. However, in order to comply with the above requirement of the CGC, the Company's Management is considering the inclusion in the existing contracts of the Board of Directors’ members of a relevant additional provision regarding the right of the Board of Directors to demand the return of all or part of the bonus that has been awarded due to breach of contract terms or inaccurate financial statements or incorrect financial information. 2.3 Corporate governance practices applied by the Company in addition to the provisions of the law The Company faithfully applies the provisions of the current legal framework regarding corporate governance, while at the present time there are no applicable practices in addition to the provisions of the law, since the main purpose and priority of the Company's Management at the present time is the complete and substantial adoption and implementation of the provisions introduced with the newly established regulatory framework (Law 4706/2020 and related decisions of the Hellenic Capital Market Commission). PART A – BOARD OF DIRECTORS Ι. Role and responsibilities of the Board of Directors, obligations of its members 1.1 The Company is governed by the Board of Directors, which is responsible for deciding on any action concerning the management of the Company, the management of its assets, its judicial and extrajudicial representation and in the general pursuit of its objective. 1.2 The Board of Directors is responsible for: • the administration, representation, as well as management of corporate assets, • decision-taking on all in general issues concerning the Company within the framework of the corporate objective, without any restrictions, with the exception of those which according to FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 38 the law or the Articles of Association of the Company fall under the exclusive competence of the General Meeting, • the representation of the Company in Greece and abroad, in front of Public, Municipal and other Authorities or International Organizations of any nature or natural or legal persons, all in general the Courts in Greece of all degree and jurisdiction, • taking any decision regarding the promotion of the Company's interests, • the definition and supervision of the corporate governance system of provisions 1 to 24 of Law 4706/2020, and the periodic monitoring and evaluation, at least every three (3) financial years, of its implementation and effectiveness, taking the appropriate actions for the addressing of deficiencies, • the assignment of the Internal Audit of the Company to one or more persons, non-members, • ensuring the adequate and efficient operation of the internal control system (which includes the functions of Internal Control, Regulatory Compliance and Risk Management), • the management of corporate affairs in order to promote the corporate interest and to supervise the execution of the Board of Directors and General Meeting’s decisions while informing the other members about corporate issues, • the definition of the values and the strategic orientation of the Company, as well as the continuous monitoring of their observance, ensuring their alignment with the corporate culture, • the diffusion of values and corporate objective in all policies, procedures and behaviors within the Company, setting for example the appropriate standards of conduct, • the planning and monitoring of the implementation of the Company's strategy and the approval and monitoring of its business plan, • determining the extent of the Company's exposure to risks, which it intends to undertake in the context of achieving its objective and in particular its long-term strategic goals, • the definition or/and delimitation of the responsibilities of the Chief Executive Officer as well as the Deputy Chief Executive Officer, if any, • the establishment of a Policy for the identification, avoidance and treatment of conflicts of interest between the interests of the Company and those of the members of the Board of Directors or persons to whom the Board of Directors has assigned some of its responsibilities, • the determination of the appropriate structures, reference lines and responsibilities to achieve the Company's objectives, • ensuring the smooth succession of its members and senior executives of the Company, • its effective operation, its systematic evaluation, as well as of its Committees and its members and their continuous improvement, • the care for the composition and operation of the Board of Directors and its Committees in accordance with the current legislation, as well as for the compliance with any obligation, as it derives from the current legislation, as well as from the corporate documents, policies and procedures governing it as well • the other responsibilities as they are provided in the Articles of Association of the Company, its Operating Regulation and the current legislation. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 39 1.3 The Board of Directors has the ability in general to assign its powers of management and representation of the Company, except those that require collective action, to one or more persons, members or not, determining at the same time the extent of this assignment. In any case, the responsibilities of the Board of Directors are subject to articles 19 and 99-100 of Law 4548/2018, as in force. 1.4 Obligations of the Board of Directors’ members 1.4.1 General The members of the Board of Directors must, in the exercise of their duties and responsibilities, observe the law, the Articles of Association and the legal decisions of the General Meeting. They have to make every effort to carry out their duties, to manage corporate affairs in order to promote corporate interest, to supervise the execution of the decisions of the Board of Directors and of the General Assembly and to inform the other members about corporate issues. The custody is judged on the basis of the status of each member and the duties assigned to him/her by law, the Articles of Association or by decision of the competent corporate bodies. 1.4.2 Obligation of faith - Conflicts of interest The members of the Board of Directors have an obligation of faith to the Company. In particular they must: (a) Do not pursue their own interests that contradict the interests of the Company. (b) To disclose in a timely and adequate manner to the other members of the Board of Directors their own interests, which may arise from the Company's transactions, which fall within their duties, as well as any conflict of their interests with those of the Company or related companies to it according to the meaning of article 32 of law 4308/2014, which arises during the exercise of their duties. They must also reveal any conflict between the interests of the Company and the interests of the persons of paragraph 2 of article 99 of Law 4548/2018, if they are related to these persons. A sufficient disclosure is one that includes a description of both the transaction and own interests. The concept of conflict or potential conflict of interest includes: (i) any direct conflict of interest, i.e. any conflict of interest of a member of the Board of Directors with the interests of the Company or of a party related to the particular member, and (ii) any indirect conflict of interest, i.e. any conflict of interest between the interests of the Company and the interests of parties connected to a member of the Board of Directors (natural or legal persons). (c) To keep strict confidentiality about the corporate affairs and the confidential of the Company which became known to them due to their status as consultants. (d) The member of the Board of Directors is not entitled to vote on issues in which there is a conflict of interest with his/her Company or persons with whom he/she is associated in a relationship subject to paragraph 2 of article 99 of Law 4548/2018. In these cases the decisions are taken by the other members of the Board of Directors, and in case the impossibility of voting concerns so many members, so that the rest do not form a quorum, the other members of the Board of Directors, regardless of their number, must proceed to convening a General Meeting for the sole purpose of taking this decision FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 40 1.4.3 Prohibition of competition It is prohibited for the members of the Board of Directors who participate in any way in the management of the Company, as well as to its directors, to act, without the permission of the General Meeting or the relevant provision of the Articles of Association, on their own account or on behalf of third parties, acts subject to the purposes of the Company, as well as to participate as general partners or as sole shareholders or partners in companies that pursue such purposes. In case of culpable violation of the previous paragraph prohibition, the Company is entitled to claim compensation. However, instead of compensation, it may require that, for transactions performed on behalf of the consultant or the director, these transactions were performed on behalf of the Company, and that for transactions performed on behalf of a third party, to be granted to the Company the fee for the mediation or to be assigned to it the relevant receivables. These receivables expire after one (1) year from the time when the above transactions were announced at a meeting of the Board of Directors or were notified to the Company. The limitation period, however, occurs five (5) years after the entry into force of the prohibited act. ΙΙ. Size and Composition of the Board of Directors 2.1 Composition of the Board of Directors 2.1.1 According to article 9 of the Company’s current Articles of Association, the Board of Directors consists of five (5) to fifteen (15) members, who are elected by the General Meeting of Shareholders with an absolute majority of votes represented in the General Meeting. 2.1.2 The members of the Board of Directors can be shareholders of the Company or not. A member of the Board of Directors can also be a legal entity. In this case, the legal entity is obliged to appoint a natural person to exercise the powers of the legal entity as a member of the Board of Directors. The natural person is fully co-responsible with the legal entity for corporate management. 2.1.3 The members of the Board of Directors are always re-elected and freely revoked by the General Meeting, regardless of the expiration date of their term. 2.1.4 The General Meeting may also elect alternate members, equal number to the regular members. Alternate members may be used only to replace members of the Board of Directors who have resigned, passed away or lost their status in any other way. 2.2 Term of the Board of Directors The term of the Board of Directors’ members is five years, extended until the expiration of the term within which the next Ordinary General Meeting must convene and until the relevant decision is taken, but in no case may it exceed six years. 2.3 Participation in the meeting of the Board of Directors 2.3.1 Each consultant must attend the meetings of the Board of Directors uninterruptedly and devote the time required for the satisfactory and effective fulfillment of his/her duties. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 41 2.3.2 The unjustified absence or non-representation of a consultant during the meetings of the Board of Directors for a period longer than six (6) months is equivalent to his/her resignation. The resignation becomes final from the day that the Board of Directors will decide on it, and its decision is recorded in the minutes and is notified to the consultant to whom it concerns. In the event of an unexcused absence of an independent member in at least two (2) consecutive meetings of the Board of Directors, this member should be considered as having resigned. In such a case, the resignation will be established by a decision of the Board of Directors, which will then replace the member, in accordance with the procedure of par. 4, article 9 of Law 4706/2020. 2.4 Replacement of the Board of Directors’ members 2.4.1 Subject to the provisions of Law 4706/2020 on corporate governance, in case of resignation, death or any other way of losing the status of member or members of the Board of Directors, the latter may elect members to replace the missing members. This election is allowed if the replacement is not possible by alternate members, who may have been elected by the General Meeting. The election by the Board of Directors is made by decision of the remaining members, provided that there are at least three and is valid for the remainder of the term of the replaced member. The decision of the election is submitted to the publicity of article 13 of law 4548/2018 and is announced by the Board of Directors at the next General Meeting, which can replace the elected members, even if there is no relevant item on the agenda. 2.4.2 In case of resignation, death or in any other way loss of member or members’ status of the Board of Directors, the remaining members may continue the management and representation of the Company without replacing the missing members in accordance with the previous paragraph, provided that their number exceeds half of the members, as they had been before the occurrence of the above events. In any case, there may not be less than three members (3). 2.4.3 In any case, the remaining members of the Board of Directors, regardless of their number, may convene a General Meeting with the sole purpose of electing a new Board of Directors. 2.5 Distinction between executive and non-executive members of the Board of Directors 2.5.1 The executive members of the Board of Directors are in charge of the management issues related to the daily operation of the Company as well as for the implementation of the strategy determined by the Board of Directors. The executive members regularly consult with the non-executive members of the Board of Directors on the appropriateness of the strategy implemented. In cases of crises or risks, as well as when the circumstances require the assumption of measures that are reasonably expected to significantly affect the Company, such as when decisions are to be made regarding the development of the business activity and the risks assumed which are expected to affect the financial position of the Company, the executive members inform the Board of Directors in writing without delay, either jointly or separately, submitting a relevant report with their estimates and proposals. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 42 2.5.2 The non-executive members of the Board of Directors, including the independent non-executive members, are responsible for the promotion of the corporate goals and issues and the safeguarding of the interests of the Company and have, in particular, the following obligations: (a) monitor and examine the Company's strategy and its implementation, as well as the achievement of its objectives, (b) ensure effective oversight of executive members, including monitoring and controlling their performance, (c) consider and express opinions on proposals submitted by executive members, based on existing information, (d) contribute, through constructive criticism, in the development of strategy proposals for all the Company's issues. 2.5.3 The Board of Directors of the Company, in terms of its independent non-executive members, takes all necessary measures to ensure compliance with the independence criteria set by the applicable regulatory framework. With the assistance and support of the Remuneration and Nomination Committee, the Board of Directors reviews the fulfilment by independent non-executive members of the independence criteria at least on an annual basis per financial year and before the publication of the annual Financial Report, which includes relevant finding concerning their independence. Within this framework, each independent non-executive member completes and submits annually to the Board of Directors a relevant questionnaire and a responsible statement regarding his/her fulfilment of the independence criteria. Following the above, the Board of Directors of the Company after a thorough examination of the fulfilment by the independent non-executive members of the defined by the provisions of article 9 par. 1 and 2 conditions of independence, declares, ascertains and confirms that both during the 2024 (01.01.2024-31.12.2024), as well as at the date of approval of this Report, all its independent non- executive members, and in particular Mr. Ioannis Tsoukaridis, Ioannis Papamichalis and Aliki Benroubi, continue to meet in their entirety the conditions of independence set by the current regulatory framework. 2.6 Succession of members of the Board of Directors and CEO 2.6.1 The Board of Directors of the Company during its meeting on 30/12/2022 approved the Policy and Procedure for the Succession of the Board Members and CEO, which was drawn up with the cooperation of the Remuneration and Nomination Committee. The Policy aims to ensure on the one hand the orderly and smooth functioning of the Board of Directors, and on the other hand, the smooth continuity of the corporate entity and the effective implementation of the business plan and its strategy. 2.6.2 The above Policy applies: (a) to all the members of the Company's Board of Directors (executive, non-executive, independent non- executive), (b) to the CEO of the Company, as well as to his/her Deputies (one and/or more) and (c) to the members of the various Committees of the Board of Directors. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 43 2.6.3 The Succession Policy and Procedure for the members of the Board of Directors and the CEO includes the following stages: • recognition of the need to fill the vacancy, • determination and approval of the profile of the position to be filled, • examination of the possibility of filling the position internally from the list of candidates maintained and updated by the Remuneration and Nomination Committee, • activation of the possibility of selecting an external candidate, in case there is no suitable internal candidate, either upon recommendation or through assignment to an external consultant, • evaluation of the main characteristics and qualifications of the candidates to fill the position according to the procedure and criteria described in the Succession Policy, • completion of the evaluation process and communication of the results to the interested parties. 2.6.4 The Company's Remuneration and Nomination Committee evaluates the adequacy and effectiveness of the Policy, monitors its adoption and implementation, while recording any identified weakness as well as deficiency and makes the necessary and appropriate proposals-recommendations for improvement. 2.6.5 The Policy is examined on an annual basis and its content as well as implementation is amended and reviewed whenever this is deemed appropriate or necessary, following a relevant recommendation by the Remuneration and Nomination Committee. 2.7 Evaluation of the Board of Directors 2.7.1 The evaluation of the members of Board of Directors is carried out on an annual basis and includes the assessment of all members (executive, non-executive, independent non-executive), as well as third parties (non-members of the above body) who are members of the more specific BoD Committees. 2.7.2 The members of the Board of Directors are evaluated: (a) on a collective basis, which takes into account the overall operation and effectiveness of the subject corporate body and (b) on an individual basis which entails the assessment of contribution of each member towards the successful operation of the Board of Directors. 2.7.3 The evaluation of both the collective and individual suitability is carried out on the basis of questionnaires which are completed by each member of the Board of Directors separately, while additionally within the framework of individual assessment, private meetings between the Remuneration and Nomination Committee and the members may be held, if deemed appropriate or necessary. The members of Board of Directors must answer honestly to all the questions included in the questionnaires. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 44 2.7.4 The criteria based on which the suitability of the members of Board of Directors is evaluated are defined by Law 4706/2020, the decisions issued by the Hellenic Capital Market Commission under its authority, as well as by the Company's applicable Suitability Policy that has been adopted and is currently effective. 2.7.5 The evaluation of the overall performance of the Board of Directors concerns the following: the size and composition, the existence of diversity among its members, the adequate representation by gender and the non-application of outdated criteria (e.g. gender, race, color, ethnic or social origin, religion, age, sexual orientation, etc.) during the recruitment process. In any case, the evaluation of the collective suitability of Board of Directors aims to ensure the existence of a body that consists of the most competent and suitable (fit and proper) individuals, operates in accordance with the Articles of Association, the Greek Code of Corporate Governance, the Internal Regulation, the Company's more specific Policies and Procedures, as well as the applicable legislative and regulatory framework in general. The evaluation also ensures that the Board of Directors is able to take, through effective cooperation and fruitful exchange of views, the appropriate decisions taking into account the business model, the risk acceptance level, the business strategy and the conditions of the market in which the Company activates, while monitoring the actual implementation of the decisions of top management and exercising constructive criticism in the context of promoting the broader corporate interests. 2.7.6 The evaluation of the individual suitability of each member of the Board of Directors concerns the level of performance on an individual basis and the assessment of contribution to the effective operation and overall performance of the collective body, i.e. BoD. When evaluating individual suitability, the member's status (executive, non-executive, independent), his/her participation in special committees, the assumption of specific responsibilities, along with the theoretical knowledge and professional experience are all taken into account for the benefit of the company's interests and activities. Additional areas that are being assessed include the time each member spends in fulfilling the respective duties, the overall personal behavior, the absence of any kind of compromise, as well as the absence of objective and proven factors that indicate a lack of honesty, integrity and good reputation. 2.7.7 The Company's Remuneration and Nomination Committee is the competent body for the initiation of the evaluation process of the Board of Directors as well as for the more specific structure of this process (internally or via the assistance of an independent external consultant). 2.7.8 In the event that a low level of performance is detected, the Chairman of the Board of Directors (non-executive member) is being informed. By this manner, an individual meeting with the member of the Board of Directors can be considered on the one hand for personal briefing and on the other hand for purposes of discussion about the individual weaknesses or deficiencies that have been identified and also for taking further actions or implementing procedures, the adoption of which is deemed appropriate as well as necessary (e.g. further training of the member, removal of specific responsibilities, etc.). FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 45 ΙΙΙ. Operation of the Board of Directors 3.1 Formation of the Board of Directors as a body The Board of Directors immediately after its election by the General Meeting convenes and is formed in a body, electing among its members by secret voting and by an absolute majority the Chairman and Vice- Chairman as well as the Chief Executive Officer. The Chairman, when he/she is absent or disabled, is replaced by the Vice Chairman and him/her, the Consultant appointed by the Board of Directors. The Chief Executive Officer, when absent or disabled, is replaced by the Consultant appointed by the Board of Directors. The award of the position of Chairman or Vice-Chairman and the Chief Executive Officer is not considered incompatible for the same person. 3.2 Board of Directors meetings 3.2.1 The Board of Directors meets whenever required by law, the Articles of Association or the needs of the Company, at its headquarters or in the region of another Municipality within the prefecture of the headquarters. The Board of Directors meets validly outside its headquarters in another place, either at resident country or abroad, provided that all its members are present or represented at the meeting and no one objects to the holding of the meeting and the decision-making. 3.2.2 The Board of Directors may meet by teleconference with respect to some or all of its members. In this case, the invitation to the members of the Board of Directors includes the necessary information and technical instructions for their participation in the teleconference. 3.2.3 During the closing year 2024 thirty six (36) meetings of the Board of Directors took place. All of its members participated in all the above meetings (fully-attended meeting). 3.3 Convening of the Board of Directors 3.3.1 The Board of Directors is convened by its Chairman or his/her deputy with an invitation notified to its members, in which the items of the agenda must be clearly stated, otherwise decisions are allowed only if all the members of the Board of Directors are present or represented and no one objects to decision making. 3.3.2 The convening of the Board of Directors can be requested by at least two (2) of its members with their request to its Chairman or his/her deputy, in accordance with the provisions of article 91 par. 3 of law 4548/2018. 3.4 Quorum - Decision making of the Board of Directors 3.4.1 The Board of Directors is in quorum and meets validly, when is present or represented to it half (1/2) plus one consultant, but the number of present or represented members can never be less than three (3). In order to find the quorum number, any resulting fraction is omitted. 3.4.2 The decisions of the Board of Directors are validly taken by an absolute majority of the members present or represented. In case of a tie, the vote of the Chairman of the Board of Directors shall not prevail. Each Consultant has one (1) vote. Each consultant can validly represent only one consultant. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 46 Representation may not be assigned to persons who are not members of the Board of Directors. The voting in the Board of Directors is open, unless with its own decision it is decided that on the specific issue a secret voting will be held, in which case the voting is conducted with a ballot paper. 3.5 Board of Directors’ minutes 3.5.1 The discussions and decisions of the Board of Directors are recorded briefly in a special book, which can also be kept electronically. At the request of a member of the Board of Directors, the Chairman is obliged to record in the minutes a summary of his/her opinion. The Chairman has the right to refuse to record an opinion, which refers to issues obviously off the agenda or its content is clearly contrary to good morals or the law. In this book it is also recorded a list of members present or represented at the meeting of the Board of Directors. The minutes of the Board of Directors are signed by the present members. In case of refusal of signing by a member, a relevant mention is made in the minutes. 3.5.2 Copies and extracts of the minutes of the Board of Directors are certified by the Chairman or his/her deputy, in case of impediment, by the General Manager of the Company or by the person appointed by a decision of the Board of Directors of the Company. 3.5.3 Copies of minutes of Board of Directors meetings for which there is an obligation to register them in the G.E.M.I., according to article 12 of law 4548/2018 or other provisions, there are submitted to the competent service of G.E.M.I. within twenty (20) days from the meeting of the Board of Directors. 3.5.4 The preparation and signing of minutes by all members of the Board of Directors or their representatives is equivalent to a decision of the Board of Directors, even if no previous meeting has taken place. This arrangement also applies if all consultants or their representatives agree to have their majority decision recorded in a minutes without a meeting. The relevant minutes are signed by all Consultants. Signatures of consultants or their representatives can be replaced by exchanging messages by e-mail or other electronic means. ΙV. Information for the current Board of Directors and the Committees of the Company 4.1 In the context of the full, substantial and effective compliance and harmonization of the Company with the requirements and regulations of the new law 4706/2020 (Government Gazette A 136/17.07.2020) on corporate governance, the Annual Ordinary General Meeting of shareholders of June 25, 2021 elected a new nine-member (9-member) Board of Directors with a five-year term, namely until 25.06.2026, extended until the expiration of the deadline within which the next Ordinary General Meeting must convene and until a relevant decision is made, consisting of the following members: 1) Georgios Ginosatis of Spyridonas, 2) Stamatina Ginosati of Georgios, 3) Stamatios Ginosatis of Spyridonas, 4) Asimina Ginosati of Dimitrios, 5) Dimitrios Ginosatis of Stamatis, 6) Spyridonas Ginosatis of Stamatis, 7) Ioannis Tsoukaridis of Petros, FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 47 8) Ioannis Papamichalis of Eustratios and 9) Aliki Benroubi of Sam Samouil. 4.2 At the same time with this decision of the above Annual Ordinary General Meeting of the shareholders has defined as independent members of the Company’s Board of Directors Messrs.: 1) Ioannis Papamichalis of Eustratios, 2) Ioannis Tsoukaridis of Petros and 3) Aliki Benroubi of Sam Samouil, who meet the who fully meet the conditions and criteria of independence set by the current legislative and regulatory framework (article 9 par. 1 and 2 of l. 4706/2020), namely: (a) do not hold directly or indirectly percentage of voting rights greater than 0.5% of the Company’s share capital and (b) are free from any dependent relationship with the Company or persons related to it and maintain no financial, business, family or other relationship, which may affect their decisions and their independent, objective and impartial judgment. 4.3 The above-elected Board of Directors was formed into body as follows: 1) Georgios Ginosatis of Spyridonas, Chairman of the Board of Directors (Non-Executive Member). 2) Stamatina Ginosati of Georgios, Vice-Chairman of the Board of Directors (Executive Member). 3) Stamatios Ginosatis of Spyridonas, Chief Executive Office (Executive Member). 4) Asimina Ginosati of Dimitrios, Member of the Board of Directors (Executive Member). 5) Dimitrios Ginosatis of Stamatis, A’ Deputy Chief Executive Officer (Executive Member). 6) Spyridon Ginosatis of Stamatios, B’ Deputy Chief Executive Officer (Executive Member). 7) Ioannis Tsoukaridis of Petros, Member of the Board of Directors (Independent Non-executive Member). 8) Ioannis Papamichalis of Efstratios, Member of the board of Directors (Independent Non-Executive Member). 9) Aliki Benroubi of Sam Samouil, Member of the Board of Directors (Independent Non-Executive Member). The composition of the existing and legally elected Board of Directors of the Company fully covers the appropriate and effective exercise of its duties and responsibilities, reflects adequately the size, organization and mode of operation of the Company that requires speed and flexibility, due to the strong export orientation and the very high percentage of extroversion, achieves adequate staffing of both existing and new Committees set up to strengthen the supervisory role of the Board of Directors, and it is distinguished for the diversity of knowledge, skills, qualifications and experience, elements that can contribute decisively to the promotion and achievement of the corporate objectives and plans of the Company. Particularly and according to the above, the Company’s Board of Directors is consisted of: • 4/9 (44.4%) non-executive members • 3/9 (33.3%) independent non-executive members • 3/9 (33.3%) women • 2 female executive members FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 48 4.4 The minutes of 25.06.2021 of the Annual Ordinary General Meeting of the Company's shareholders regarding the election of a new Board of Directors as well as the minutes of 25.06.2021 of the Board of Directors on its formation into body and the granting of commitment and representation rights of the Company were registered in the General Commercial Registry (G.E.MI) on 08.07.2021 with Registration Code Numbers (RCN) 2578692 and 2578693 respectively, issued in relation to it with protocol number 2400213/08.07.2021 of the relevant announcement of the Ministry of Development and Investment (General Secretariat of Commerce & Consumer Protection, General Directorate of Market, Directorate of Companies, Department of Supervision of Listed SAs & Sports SA). 4.5 As of December 31, 2024 as well as on the date of publication of this Report, the composition of the Board of Directors is as follows: 4.6 Regarding the proper operation of the Board of Directors and the day-to-day management and control of the Company's activities, there is a clear separation of responsibilities at the management level. The duties of the Chairman of the Board of Directors and those of the Chief Executive Officer are exercised by different persons, while in full compliance with the provision of par. 1 of article 8 of Law 4706/2020 the Chairman of the Board of Directors is a non-executive member. In particular and in accordance with the provisions of the current Operating Regulations of the Company: 4.6.1 Chairman of the Board of directors The Chairman of the Board of Directors, who is a non-executive member, chairs the meetings of this corporate body and is responsible for organizing and coordinating its work in order to achieve its efficient and effective operation. The responsibilities of the Chairman of the Board of Directors include the following: • ensuring the good organization and efficiency of the Board of Directors’ work and its Committees, • setting the items on the daily agenda, ensuring that the Board of Directors takes decisions on all matters within its remit and devotes the required time to issues that concern it, Full Name Capacity Date of Election End of Term & Re-election Chairman of BoD 25.06.2021 25.06.2026 Non-Executive Member Stamatina Ginosati Vice Chairman of BoD 25.06.2021 25.06.2026 Executive Member Stamatios Ginosatis Chief Executive Officer (CEO) 25.06.2021 25.06.2026 Executive Member Asimina Ginosati Executive Member 25.06.2021 25.06.2026 Dimitrtios Ginosatis First Deputy CEO 25.06.2021 25.06.2026 Executive Member Spyridon Ginosatis Second Deputy CEO 25.06.2021 25.06.2026 Executive Member Ioannis Tsoukaridis Independent Non- Executive Member 25.06.2021 25.06.2026 Ioannis Papamichalis Independent Non- Executive Member 25.06.2021 25.06.2026 Aliki Benroubi Independent Non- Executive Member 25.06.2021 25.06.2026 Georgios Ginosatis FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 49 • convening and chairing the meetings of the Board of Directors and ensuring their effective conduct through the encouragement of constructive dialogue and the effective contribution of the views of the Board of Directors’ members, • ensuring the timely and correct information of the Board of Directors’ members for the preparation of its meetings, • ensuring constructive relations between executive and non-executive members and creating an open-minded culture, • ensuring the effective communication of the Board of Directors with the shareholders, so that their positions on important issues are understood, • cooperation with the Chief Executive Officer and the Corporate Secretary for the preparation of the Board of Directors and the full information of its members, • overseeing the evaluation process of the Board of Directors for the effective fulfillment of its duties, • all other responsibilities that, as the case may be, are mentioned in the Company's Articles of Association and / or in the current legislation. 4.6.2 Chief Executive Officer The Chief Executive Officer is the Executive Member of the Board of Directors to whom are assigned the responsibilities for the management of the Company and its representation, acting within the limits of the powers and responsibilities set by the current legislation, the Articles of Association, the specific decisions of the Board of Directors, the Regulations and Policies that govern the organization and operation of the Company. In particular, the CEO has the following responsibilities: • conducts every act of administration, management and representation of the Company within the framework of the powers and responsibilities assigned to him/her by the Board of Directors, • decides on all general issues concerning the Company within the framework of the corporate objective, • executes the decisions of the Board of Directors, • is responsible for the implementation of the corporate strategy as defined by the Board of Directors, • further delegates the exercise of the powers and responsibilities assigned to him/her to third parties, employees or not of the Company, members or not of the Board of Directors, in general or for only certain acts, within the scope of the powers assigned to him/her, determining at the same time the scope of this assignment, • ensures the immediate availability to the members of the Board of Directors of any information that becomes necessary for the performance of their duties, • cooperates with the Chairman of the Board of Directors and the Corporate Secretary for the preparation of the Board of Directors and the full information of its Members, • consults at regular intervals with the non-executive members of the Board of Directors on the appropriateness of the corporate strategy in its implementation, • informs the Board of Directors in writing without undue delay, either alone or together with the other executive members of the Board of Directors, submitting a relevant report with the FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 50 assessments and proposals, when there are situations of crisis or risk, as well as when the circumstances require them to be taken measures, which are reasonably expected to significantly affect the Company, such as when decisions are to be made regarding the development of the business activity and the risks taken, which are expected to affect its financial position. 4.6.3 Vice-Chairman of the Board of Directors The Vice Chairman of the Board of Directors replaces the Chairman in his/her duties, in cases where the Chairman is prevented from exercising them and in general where provided by the Company's Articles of Association and the law. The Vice Chairman of the Board of Directors, in addition to his/her responsibilities related to the operation of the Board of Directors, and to the extent that he/she retains executive capacity, will exercise the executive responsibilities provided to him/her by the relevant powers of the Board of Directors, in order to participate in all decisions which substantially affect the course of the Company. 4.6.4 Deputy Chief Executive Officer The Deputy Chief Executive Officer is an Executive Member of the Board of Directors of the Company and replaces the Chief Executive Officer, when he/she is absent or prevented from performing any of his/her duties. More than one executive member of the Board of Directors may be appointed as Deputy Chief Executive Officers, while the extent of responsibilities assigned to them is delimited by the Board of Directors by special decision. 4.6.5 Corporate Secretary It is a support body of the Board of Directors according to the Greek Code of Corporate Governance. Appointed and revoked by the Board of Directors, is not a member of it and attends its meetings. The main responsibilities of the Corporate Secretary are the following: • providing practical support to the Board of Directors of the Company in terms of its compliance with the internal Policies and Procedures of the Company, the relevant laws and regulations and the effective operation of the Board of Directors, • ensuring, in consultation with the Chairman, the immediate, clear and complete information of the Board of Directors, the inclusion of new members, the organization of General Meetings, the facilitation of communication of the shareholders with the Board of Directors and the facilitation of communication of the Board of Directors with senior executives. 4.7 Curriculum vitae of members of the Board of Directors and senior executives 4.7.1 The brief CVs of the Members of the Board of Directors are as follows: Georgios Ginosatis, Chairman of the Board of Directors (Non-Executive Member) He is one of the founders of FLEXOPACK with industrial and administrative experience for over forty years. He has been educated on polymer technology and processing. For a number of years he was an elected Consultant at the Athens Chamber of Commerce and Industry. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 51 He was the Chairman of the Board of Directors and Chief Executive Officer of FLEXOPACK from January 1989 until June 2021, when he assumed the capacity of the Chairman of the Board of Directors. Stamatios Ginosatis, Chief Executive Officer (Executive Member) He has industrial administrative and laboratory experience of more than forty years. He is one of FLEXOPACK’s founders. His vision, business thinking and international experience have contributed to the significant growth of the Group, making the Group one of the leaders in Europe in the field of flexible plastic packaging of the food industry. He served as Vice-Chairman of the Board of Directors and Deputy Chief Executive Officer of FLEXOPACK from January 1989 until June 2021, when he assumed the capacity of Chief Executive Officer. He studied Chemistry at the Aristotle University of Thessaloniki and holds a M.Sc. from the City University of London in polymer technology. Ginosati Stamatina, Vice-Chairman of the Board of Directors (Executive Member) She is the head of the Human Resources Management (HR) Department of the Group. She holds a degree in Economics and Business Administration (Maitrise Economie et Gestion de l'entreprise) from the University of Aix - Marseille II in France as well as long-term work experience in the Company and later in the Group, as she has been actively employed since 2002 until today, while she was elected as a member of the Board of Directors in June 2017. Ginosati Asimina, Member of the Board of Directors (Executive Member) She has significant administrative experience and knowledge of the Company's objective, employed in a dependent employment relationship since 1986 continuously until today, participating in the close management team with the Company's founders and having assumed responsibility for both the Company's Credit Control Department and broadly of the Group, as well as the supervision of organizational and administrative operations. She was elected as an executive member of FLEXOPACK’s Board of Directors on January 1989. Ginosatis Dimitrios, First Deputy Chief Executive Officer (Executive Member) He is the Head of Business Development of Flexopack Group and he has held various positions of responsibility in the organization during his 15-year term. He has extensive experience in the production, research and development of flexible packaging products and holds patents on plastic packaging. He was born in 1980 in Athens and holds a B.A. in Computer Science from Brown University in the USA and M.Sc. in Polymer Science from Michigan State University. He is member of FLEXOPACK BoD as of June 2017. Ginosatis Spyridon, Second Deputy Chief Operating Officer (Executive Member) He is the Head of Operations of FLEXOPACK Group with experience of more than 10 years in the polymer processing industry. He has been an executive in financial and business sector before joining the team of Flexopack. He was born on 1983 in Athens and holds a B.Sc. on applied Mathematics from the University of Brown USA. He is member of FLEXOPACK BoD as of June 2017. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 52 Tsoukaridis Ioannis, Member of the Board of Directors (Independent Non-Executive Member) He is a graduate of the Athens University of Economics and Business. He started his career in 1973 with a small printing house and managed to achieve a continuous growth of his customer base. In 1979 it made a turn by expanding the activity of the printing house, entering the boxing industry and turning PAPERPACK into the Leader of the boxing industry in Greece. From 1996 to the end of 2020, he was the Chairman and CEO of the listed company on the Athens Stock Exchange PAPERPACK SA, of which he was the main shareholder. Papamichalis Ioannis, Member of the Board of Directors (Independent Non-Executive Member) He is a graduate of the University of Thessaloniki and holds a master’s in business administration (M.B.A in Finance) from Georgia State University. He worked from 1980 to 1987 at TITAN CEMENTS SA in the Department of Studies and Internal Audit. From 1987 to 1993 he was the Head of Studies, Planning and Internal Audit at VARNIMA CORPORATION INTERNATIONAL and from 1993 to 2017 he held the position of Chief Financial Officer at AVIN INTERNATIONAL S.A. He is a member of FLEXOPACK’s Board of Directors as of June 2021. Benroubi Aliki, Member of the Board of Directors (Independent Non-Executive Member) Chairman and CEO of Benroubi SA. She studied Economics at the H.E.C. of Lausanne and the Deree College of Athens. From the beginning of her career she worked in the Benroubi family business, a dominant company in the field of import and distribution of renowned international companies’ electrical appliances. Since 2002, she is the creator of the small electrical appliances brand IZZY, which currently holds a leading position in the Greek market. She is member of FLEXOPACK’s Board of Directors as of June 2018. 4.7.2 The brief CVs of the Company’s senior management are as follows: Pelonis Panagiotis– Factory Director He holds a degree in Electrical Engineer from Western Michigan University in the USA. He is employed in the Company as of December 1999, where he holds the position of Factory Director. Rousos Georgios–R&D Director He is in charge of the Research and Development Department of the Group. He has a bachelor’s degree in chemical engineering from M.P.U. He has long-term work experience in the Company and later in the Group, as he has been actively employed since May 1997 until today. Mantzoros Dimitrios– Group Commercial Director He has been working at the Company since 1996. He has a bachelor’s degree in electrical engineering from M.T.U. and after gaining long work experience in the Company and later in the Group, he holds the position of Commercial Director of the Group. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 53 Vasilis Kyrou, PhD– Sales Director He is a Chemical Engineer, graduate of the Polytechnic School of AUTh, 1983, with MSc and PhD in Chemical Engineering, from Syracuse University, NY, USA. Has long-term professional experience in sales topics in the International Market. From 1991 to 1998 he worked in various industrial companies, initially as R&D Manager and Technical Director and then as Commercial Director (El. Hatzopoulos SA, N. Vamvalis SA). As of October 1998, he started working as Export Director of Flexopack, where he continues to this day as Sales Director. Koumoutsos Antonis -Group Supply Chain Director He is in charge of the Supply Chain Department of the Group. He has a bachelor’s degree in chemical engineering from M.P.U. and a postgraduate degree from Cranfield University U.K. as well as M.B.A. from E.U.A., as well as long-term work experience in the Company and later in the Group, as it has been actively employed since the year 2001 until today. Anastasios Lymperopoulos –Financial Director He is a graduate of the Department of Economics of the National Kapodistrian University of Athens and has long-term professional experience in the field of Finance. From February 1982 to December 1994, he worked in various commercial and industrial companies holding the position of Accounting Director, among them in the companies "ORGANON HELLAS SA" and "ORGANON TECHNICS HELLAS SA” of the “AKZO” group. From April 1995 to December 1996, he was the Financial Director of the company AGROTIKOS OIKOS SPYROU SA. At FLEXOPACK he started working as of January 1997, where from then until today he holds the position of Financial Director of the Group. 4.8 Professional commitments of members of the Board of Directors According to the statements of the members of the Board of Directors, the following other professional commitments have been notified to the Company, including significant non-executive commitments to companies and non-profit organizations: FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 54 FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 55 It is noted that none of the members of the Board of Directors of the Company participates in the Boards of Directors of more than five (5) listed companies. 4.9 Suitability Policy of the Board of Directors 4.9.1 As the Board of Directors is the highest governing body of the Company, which is responsible for formulating the strategy, orientation and business plan of the Company, defending the general corporate interest and strengthening its long-term economic value, it is absolutely necessary that its composition should reflect the knowledge, skills and experience required to exercise its responsibilities, in accordance with the business model and strategy of the Company, its size, structure, activities and operating environment, the complexity of its functions and its special institutional role and character. 4.9.2 The Annual Ordinary General Meeting of Shareholders of June 25, 2021 approved the Suitability Policy prepared on behalf of the Management, which aims to ensure quality and proper staffing, smooth operation and effective fulfillment of the role of the Board of Directors, as a collective body, for the purpose of promoting corporate purpose and defending the corporate interest. The Suitability Policy has been designed by a clearly and defined way and includes both the principles governing the selection, replacement and / or renewal of the Board of Directors members’ term, and the criteria for assessing their suitability, including the criteria which satisfactorily ensure the diversity of the composition of the Board of Directors, in accordance with applicable law, and are harmonized with the operational organization of the Company and in particular the strongly extroverted nature of it and the Group more broadly, taking into account that its activities extend , except European, and in international markets in which the Group has achieved a significant degree of presence and creation of a competitive position. 4.9.3 In accordance with the approved and current Suitability Policy, both in the election of new Board of Directors’ members, and in case of replacement or replenishing or renewal of the term of existing members, the Remuneration and Nomination Committee takes into account the criteria related to individual and collective suitability always in the light of the corporate values, the strategy and the general business model that has been adopted and applied by the Company. Ι. Individual suitability Especially the individual suitability is being assessed based on the following criteria: (a) Adequacy of knowledge and skills The capacity of the Board of Directors is directly related to the performance of administrative duties, which dictate: (a) appropriate and adequate background of academic education and training and (b) previous related professional experience. Particularly there are taken into account: • the description of the specific responsibilities and duties related to the position of the member of the Board of Directors, • acquired knowledge and skills at academic and general theoretical level, FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 56 • the required skills in relation to the tasks to be performed (hard and soft skills), • the relevant practical and professional experience, which especially for the executive members of the Board of Directors is interwoven either with the holding of a position of responsibility, or with the exercise of business activity for a sufficient period of time, • the sufficient knowledge and understanding of the activities and the complexity of the business model of the Company but also of the Group in general and especially in the light of the international character of the corporate activities, • adequate knowledge and understanding of the legal framework and the Code of Corporate Governance implemented by the Company. (b) Guarantees of morality and reputation The members of the Board of Directors must have proven credibility, good reputation and ethics, which is determined mainly by their honesty and integrity. In particular it is taken into account • the non-existence of objective and proven reasons who indicate a lack of honesty and good reputation such as, as an example, final administrative and judicial decisions, in particular for offenses related to membership of the Board of Directors, non-compliance with the legislation of the Hellenic Capital Market Commission or in general financial offenses • the relevance of any offenses to the role of the member, their degree of seriousness, the general conditions of conduction including any mitigating factors and the role of the person involved, the sentence imposed and any remedial measures; • the existence of a decision by any competent authority to exclude the member from the exercise of duties as a member of the Board of Directors, • the time elapsed since the commission of the offense, • the general behavior of the person after the commission of the offense. (c) Conflict of interests According to the Policy and Procedure for the Prevention & Management of Conflict of Interest Situations adopted by the Company, a conflict of interest is defined as any real or potential situation (professional, personal or other situation or relationship), in which the private interests of the liable person may are contrary to the interests of the Company or may affect the ability of the liable person to assess a situation or his/her judgment to make a decision independently, impartially and based on the interest of the company and which has the possible effect that the interests of the Company are at risk. The members of the Board of Directors must strictly follow and apply the framework of policies, mechanisms and procedures for the purpose of prevention, recognition and effective treatment and management of conflict-of-interest situations, in accordance with the specific provisions of both the above policy and the company’s Operating Regulation. (d) Independence of judgement The members of the Board of Directors must act with an independent judgment, which is not only ensured by the absence of conflict of interest and the fulfillment of the conditions of independence in accordance with current legislation, but requires active participation of members in the meetings of the Board of FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 57 Directors and expression of independent and objective judgments. In particular, the following must be ensured: • the absence of any kind of compromise in the exercise of their duties as members of the Board of Directors, • the exemption from conditions that prevent the member of the Board of Directors from exercising his/her duties in an independent and impartial manner, • the assistance of behavioral skills for the purpose of substantively evaluating the proposals and views of the other members of the Board of Directors in a way that promotes constructive decision-making, • the ability to formulate and support a personal opinion and to avoid indiscriminate or mass adoption of positions that may be expressed by the other members of the Board of Directors (group thinking). (e) Allocation of sufficient time The members of the Board of Directors must have the necessary time for the orderly and effective exercise of the duties related to their position. In particular, the following shall be taken into account in determining the adequacy of the time available: • the status and the specific responsibilities and duties of the member of the Board of Directors, • his/her participation in the Committees of the Board of Directors, • the possible holding of positions and responsibilities on the Boards of Directors of other companies and / or legal entities, • other professional obligations, personal commitments, age and special personal circumstances of each member of the Board of Directors. The executive members, in particular, of the Board of Directors, whose duties are directly related to the promotion of the corporate activities and the best possible promotion of the corporate purpose, must have sufficient time to fulfil all the related obligations. For this purpose, the Company provides information to each candidate member about the expected time, which is required for the proper fulfilment of his/her duties both at the meetings of the Board of Directors, and at the meetings of the individual Committees, of which he/she may be a member. ΙΙ. Collective suitability The Board of Directors in the context of its operation as a collective body must be able to: (a) make appropriate decisions taking into account the business strategy, business development model, the range of risks taken, as well as the specific conditions prevailing in each market (domestic, European and international) in which the corporate activities take place, and (b) to effectively monitor the decisions of senior management and to exercise constructive criticism in the context of promoting the corporate interest. In the context of the above dual mission, the Board of Directors must have a sufficient number of members, who have the appropriate knowledge and experience in each area related to collective responsibility, so that the management body of the Company can exercise effective management, supervision and oversight of corporate affairs. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 58 The main areas of collective responsibility include: • business planning and organization in general, • the key risks associated with the exercised business activity, the ability to identify and properly manage them, • in the applicable financial information and reporting framework, • adequate knowledge and understanding of issues related to corporate governance, • compliance with the legislative, regulatory in general framework. ΙΙΙ. Diversity criteria The Suitability Policy, which has been adopted and implemented by the Company in the context of promoting an effective corporate governance model, promotes the diversity criteria during the selection process of the members of the Board of Directors, and of the management and supervisory bodies of the Company, so that they are made up of a multi-collective team based on sufficient degree of differentiation. The adoption of diversity criteria and the evaluation of the specific qualifications and experiences of each member are related in particular to: (a) the avoidance of outdated and anachronistic social stereotypes in assessing the suitability of members, (b) promoting different views within the institution in order to make it more effective in decision-making, and (c) the pursuit of integrating innovative approaches and ideas into the decision-making process. More specifically, the basic criteria of the intended diversity of composition of the Board of Directors and the management and supervisory bodies of the Company are as follows: • the minimum percentage (25% of the total members) representation by gender, • the prohibition of exclusion of a candidate or active member of the Board of Directors due to different gender, race, color, ethnic or social origin, religion or belief, property, birth, disability, age or sexual orientation. The members of the current Board of Directors as well as of the committees cover a wide age range (between 40 and 80 years), combine dynamics and experience, are distinguished for their ethics, reputation, reliability and integrity of character, have worked in high positions and have been senior executives of important companies, as a result of which they have rich experience in the business field and are able to actively and substantially contribute to the development prospects of the Group in the geographical areas of its activity. 4.9.4 The full text of the Suitability Policy of the members of Board of Directors is available on the Company's website https://flexopack.com/investor relations/corporate governance/policies . 4.9A Diversity Policy 4.9A. 1 It is noted that the Company, in full compliance with the requirements of Law and in particular with the provisions of article 152 paragraph “f” of Law 4548/2018, as amended and as it is in force today, has adopted a Diversity Policy. The Policy describes in a clear and detailed manner all principles and rules applied by the Company towards the equal treatment and respect for the administrative, managerial and FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 59 supervisory bodies of the Company. This Policy is being applied in terms of gender, age, any disability, educational and professional background of the respective individuals, thereby enhancing diversity within the Company, with regard to the above bodies. 4.9A.2 In more specific terms, this Policy is governed by the following guiding principles and objectives: a) The Company attributes the highest value to all persons falling within the scope of the Diversity Policy by implementing business practices that demonstrate zero tolerance in terms of discrimination, promoting equal opportunities and diversity as well as equality in recruitment, employment, development, talent management and remuneration. This is performed always in full compliance with the applicable legislative and regulatory framework along with the highest respect for the protection of Human Rights. b) Taking into consideration all the different elements as well dimensions which characterize the individuals comprising the administrative, managerial and supervisory units, including education, family status, culture, language, way of thinking and working, experience and skills of all kinds, in order to utilize all these specific characteristics for the benefit of the Company and towards maximizing corporate value. c) Ensuring unhindered access, without discrimination in terms of gender, age and other features, to all types of infrastructure, services and goods that exist and circulate in the working environment. The Company meets this objective by utilizing every appropriate means towards this goal. d) Providing equal professional opportunities without discrimination. In particular, the Company does not apply any kind of discrimination and treats all distinct administrative and managerial units with respect and equality. Moreover the Company fully complies with the applicable law and regulations and avoids making any decisions based on criteria in relation to race, color, gender, age, nationality, religion, disability, gender identity or expression, marital status, sexual orientation or in general any other legally protected attribute/right. The above are applied especially with regard to recruitment, training, determination of salaries or the promotion process within its managerial bodies and also with regard to administrative and managerial executive officers. The recruitment, evaluation, nomination, remuneration and development procedures in relation to the above bodies do not contain any reference or limitation regarding gender, age, culture, nationality, physical abilities, political and religious beliefs, social status, sexual orientation and any other similar distinction. During the recruitment and evaluation procedures for administrative and managerial personnel, no reference is being made towards the so-called protected characteristics (such as religion, family status, etc.), but only to predetermined criteria that relate to skills and performance. e) Continuous commitment along with a sense of responsibility towards the goal achievement, learning process, continuous monitoring and regular review of the definition of diversity, in order to constantly achieve equality and avoid any discrimination. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 60 f) Constant diligence along the interaction and cooperation of people with different backgrounds and different perceptions in order to achieve in practice a good collaboration level between "different" people by practically attaining good cooperation even between heterogeneous groups. At the same time this eliminates discrimination, elitism and any kind of negative treatment with regard to the characteristics of any individual. g) Ensuring equal remuneration for similar level work and responsibility and avoiding any kind of non- merit-based discrimination based on gender, race or nationality, or in general based on the existence of any kind of special characteristics. h) taking all necessary measures and actions (such as, and indicatively, modification of equipment, adjustment of the workplace environment, work objective, method of performing the various tasks, working hours and place of work) in order to enable the efficient fulfilment of duties of each subject of the Policy with special needs (e.g. pregnant women, need for care or any change in the health status of the individuals, etc.). 4.9A.3 Due to the new nature of the present Policy, it is not possible at this time to provide specific reports regarding the results and/or the manner of the Policy’s implementation. Such reports may be available after the completion of the first annual reporting period of the Diversity Policy. 4.9A.4 Finally it is noted that the above corporate principles and values have been included in the Sustainability Report prepared by the Company along with all the relevant or required information. 4.10 Remuneration of Board of Directors’ members 4.10.1 An essential and fundamental condition for the long-term growth and the ensuring of the Company’s stable presence in the market, in which it operates, is the harmonization and alignment of the Board of Directors members’ remuneration with the profitability, capital adequacy, competitiveness and sustainable development of the Company. In this context, the Company has established, maintains and applies basic principles and rules regarding the remuneration of the Members of the Board of Directors (hereinafter "Remuneration Policy") that contribute at maintaining the Company's competitiveness, maximizing its long-term financial value and avoiding taking over excessive risks, due to the payment of exorbitant salaries, which are not in line with the prevailing economic conditions and the wider financial environment. 4.10.2 In particular, the Remuneration Policy: • provides incentives for attracting young people as well as retains capable executives with high theoretical training, long-term professional experience and efficiency in the performance of their duties, in order to strengthen and maximize the financial value of the Company, • ensures the provision of a competitive remuneration package, adapted to the market conditions in which the Company operates, • contributes to ensuring the capital adequacy and liquidity of the Company at the most satisfactory level, FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 61 • promotes each time the business strategy, goals, values and interests of the Company, • enhances internal transparency and clarity of the fees that fall under its regulatory scope, establishes a system of meritocracy, justice and proportionality aligned with the hierarchical structure and the importance of the respective responsibilities, • aligns the goals of the Company with the goals of shareholders and stakeholders, discouraging and limiting the probability of any conflict of interest. 4.10.3 The current Remuneration Policy of the Company was approved, in accordance with the provisions of article 110 of law 4548/2018, by the Annual Ordinary General Meeting of shareholders of June 16th, 2023, was registered in the General Commercial Register on 3/07/2019 and the validity period stands at four (4) years, unless the General Meeting within this period decides to amend it. The full text of the Remuneration Policy is available on the Company's website https://flexopack.com/investor relations/corporate governance/policies. The Remuneration Policy applies in accordance with the article 110, paragraph 1 of Law 4548/2018 to all members of the Board of Directors (executive and non-executive, with the necessary differences mentioned below) including the Chief Executive Officer (one and / or more, if any), their deputy members, if any, and the top managers, in accordance with the definition of article 2 of Law 4706/2020 (including General Managers - Administrative Officers, as defined in the Company's Internal Operating Regulation and in accordance with the definition of IAS 24 , as well as the Head of the Internal Control Unit). The current Policy is also applied to the significant subsidiaries of the Group, with the aim of the universal application of the rules on the fees and other compensation, and in order to steer clear of any adoption of generally contradictory regulations within the companies of the Group. 4.10.4 Remuneration of Executive Members According to the specific provisions of the current Remuneration Policy of the Company, the Executive Members of the Company’s Board of Directors are paid: (a) fixed remuneration and (b) variable remuneration. 4.10.4.1 At the fixed remuneration of the executive members of the Board of Directors are included: (a) the remuneration paid to the members of the Board of Directors due to a contract of employment (defined or indefinite time) or a service contract or a paid contract (annual fixed salary), (b) fees for services in Group companies (c) the compensation for participation in the meetings of the Board of Directors and decision-making, as well as for participation in BoD’s meetings, (d) the benefits in kind paid by the Company's freedom (indicatively use of a company vehicle / mobile phone / laptop / corporate credit or debit card / fuel card, provision of private health and / or life insurance, use of a fixed number of air tickets, expenses for presence or travelling, accommodation and meals in connection with the fulfillment of these duties as members of the Board of Directors. The amount of the annual cost of benefits in kind may not exceed a maximum of 20% of the annual fixed salary of each executive member of the Board of Directors. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 62 The fixed remuneration is been paid by the Human Resource Department (Payroll Department) of the Company. The Company has not yet established and as a result do not apply on the executive members of the Board of Directors: (a) pension schemes, other than the coverage of statutory social security contributions, (b) early retirement or supplementary pension schemes, (c) other incentive programs. 4.10.4.2 As Variable are considered the remuneration that are linked to the achievement of goals both of the Executive Members of the Board of Directors as well as of the Company and are a key component of its performance-oriented policy. Subject to the achievement of specific corporate profitability targets, the Board of Directors may propose the payment of variable remuneration as an incentive for higher performance. The stated objectives may be determined and revised annually in relation to the Company's annual budget and business plan. The payment of variable remuneration is not binding for the Company. The payment of variable salaries is made in cash and may be consisted of participation in the Company's profits. Variable remuneration is recorded as a percentage of annual fixed remuneration. However, in no case may the amount of the variable percentages exceed 100% of the annual fixed salaries of each of the executive members of the Board of Directors. The Company's performance goals are set at the beginning of each corporate year in collaboration between the Management and the Financial Services Department. At the end of the financial year, the non-Executive Members of the Board of Directors evaluate the performance of its Executive Members and examine the achievement of the set goals, always taking into account the financial environment and market conditions. The payment of the variable remuneration and its amount is decided by the Board of Directors of the Company in a special meeting, based on the above evaluation. The Company may not request a refund of variable remuneration paid. 4.10.5 Remuneration of Non-Executive Members The remuneration of the Non-Executive Members of the Board of Directors is approved by a special decision of the Ordinary General Meeting of the Company's shareholders. The remuneration of the Non-Executive Members of the Board of Directors is paid in cash and is subject to the deductions provided by the applicable tax and insurance legislation. The Non-Executive Members of the Board of Directors receive compensation for their participation in the meetings of the Board of Directors, while they may also be granted additional fees (bonus), participation rights in the Company's profits, stock options or compensations related to the achievement of goals of the Company, within the same framework of the quantitative restrictions that apply to the Executive Members. For the payment of remuneration to Non-Executive Members, there are taken into account the complexity-breadth of their work, the degree of experience and any special knowledge they have, their FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 63 working time, any participation in special Committees of the Board of Directors (e.g. Audit Committee), the number of meetings in which they participate, etc. The Independent Non-Executive Members do not participate in a scheme of pensions, allowances or long- term incentives, unless there is a special decision of the competent corporate body. Any expenses for performance, transportation, accommodation and meals in relation to the fulfillment of the duties of the Independent Non-Executive Members of the Board of Directors are approved by the Chairman of the Board of Directors. Especially the Independent Non-Executive Members of the Board of Directors for the proper collection of their remuneration and compensations are obliged to submit to the Company any supporting documents requested to prove the fulfillment by these criteria set in the law for their designation as independent. It is pointed out that the Remuneration Policy, in compliance with the provisions of Law 4706/2020, does not provide for variable remuneration or other benefits or compensation related to the performance for the independent non-executive members of Board of Directors, in order to primarily satisfy the intended according to Law 4706/2020 condition of "independence of judgement" and secondarily in order to avoid any conflict of interest cases. This is turn allows the BoD members to have the option to exercise constructive and objective criticism against any management's decisions that involve risk. 4.10.6 During the closing financial year 2024 (01.01.2024 - 31.12.2024), the members of the Company's Board of Directors and of the respective Committees received the remuneration which is presented in the relevant Remuneration Report. Such remuneration is in agreement and harmonization with the provisions and regulations of the applicable Remuneration Policy, which the Company has established and applies and in alignment with the consequent decisions of the General Meeting of Shareholders. The Remuneration Report for the financial year 2024 is to be posted on the Company's website (https://www.flexopack com), immediately after its submission for discussion to the Annual Ordinary General Meeting of Shareholders and will remain posted, in accordance with the provisions of Article 112 of Law 4548/2018. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 64 4.11 Number of shares of the Board of Directors’ members and senior management on 31.12.2024 PART Β – COMMITTEES & OTHER CORPORATE BODIES Ι. Audit Committee 1.1 Election and term of the Audit Committee The Annual Ordinary General Meeting of shareholders of June 25, 2021 decided the election of a new Audit Committee, in accordance with the provisions of article 44 of law 4449/2017, as in force after its amendment by article 74 of law 4706/2021, the which constitutes an Independent Joint Committee, consists of three (3) members, of which one (1) Independent Non-Executive Member of the Board of Directors of the Company and two (2) third persons - non-Members of the Board of Directors and its term is five years, expiring on June 25, 2026, extended until the expiration of the deadline within which the next Ordinary General Meeting must convene, in no case, however, may it exceed six years. 1.2 Members of the Audit Committee 1.2.1 Especially as members of the Audit Committee were elected the following persons: 1) Dimitrios Panagotas of Ioannis, Certified Auditor-Accountant (R.N. SOEL 34971), non-Member of the Board of Directors – third party. 2) Nikolaos Vlachos of Matthews, non-Member of the Board of Directors – third party. 3) Aliki Benroubi of Sam Samouil, Independent Non-Executive member of the Board of Directors. Then the Audit Committee during its meeting on 28 th June 2021 elected, among other members, as Chairman of it Mr. Dimitrios Panagota of Ioannis. Full Name Capacity in the BoD Number of Voting Rights 31/12/2024 Georgios Ginosatis Chairman of BoD 2,060,174 Stamatios Ginosatis Chief Executive Officer 3,636,466 Stamatina Ginosati Vice Chairman 933,948 Asimina Ginosati Executive Member 17,100 Dimitrios Ginosatis Executive Member 277,650 Spyridon Ginosatis Executive Member 266,872 Ioannis Tsoukaridis Independent Non Executive Member 0 Ioannis Papamichalis Independent Non Executive Member 0 Aliki Benroubi Independent Non Executive Member 0 Georgios Roussos Director of Research & Development 2,200 Panagiotis Pelonis Factory Manager 100 Dimitrios Mantzoros Commercial Policy Manager 0 Antonios Koumoutsos Supply Chain Manager 4,600 Vasilis Kyrou Sales Manager 7,290 Anastasios Lyberopoulos Chief Financial Officer 5,200 FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 65 1.2.2 For the purpose of complete, adequate and appropriate information of the shareholders and the investing public in general, below are the brief biographies of the Members of the Audit Committee who are third parties - non-Members of the Board of Directors. Dimitrios Panagotas He is a Certified Public Accountant, with a wide knowledge base and rich professional experience. He studied Accounting and Finance at the University of Macedonia and is a graduate of the two-year postgraduate program of the Institute of Certified Public Accountants for obtaining the professional license of Certified Public Accountant. He started his professional career in 1999 taking various positions in the financial sector. From January 2003 to March 2016 he worked as a Certified Public Accountant and Tax Auditor in the company Associate Certified Public Accountants SA. Since January 2019 he has been cooperating with the auditing company NEXIA EUROSTATUS S.A. In addition, he has experience as a member of Audit Committees in other companies listed on the Athens Stock Exchange. He is also a member of the Body of Certified Public Accountants and the Hellenic Institute of Internal Auditors. Nikolaos Vlachos He studied Chemistry specializing in polymers. BSc: Polymer Science, School of Molecular Science University of Sussex, UK. He is a holder of a postgraduate degree M. Philosophy by the same University with a scholarship from the company Tate + Lyle UK. He worked for 12 years as a senior executive in the flexible packaging plastics industry. From 1997 until today he holds the position of Chairman and Chief Executive Officer in the company "VLACHOU BROS SA". He was a member of the Board of Directors of FLEXOPACK from 2009 to 2021. Aliki Benroubi The curriculum vitae of Ms. Aliki Benroubi, Member of Board of Directors, is listed in detail in paragraph 4.7.1 of the present Report. 1.2.3 The members of the Audit Committee meet all the criteria and conditions set by the provisions of the current legislative and regulatory framework, namely: (a) are in their entirety independent of the audited entity in accordance with the provisions of par. 1 and 2 of article 9 of law 4706/2020 and in particular: (i) do not hold directly or indirectly a percentage of voting rights greater than 0.5% of the Company's share capital; and (ii) are free from any dependency relationship, as it (dependency relationship) is specified in par. 2 of article 9 of law 4706/2020, with the Company or persons related to it and they do not have any financial, business, family or other relationship which may influence their decisions and their independent, objective and impartial judgment, (b) have a thorough knowledge of the sector in which the entity operates; and (c) at least one member of the Committee who is independent of the audited entity, has sufficient knowledge and experience in auditing or accounting, and is required to attend the meetings of the Committee on the approval of financial statements. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 66 1.3 Operation of the Audit Committee 1.3.1 The Audit Committee has Operating Regulation, which was approved by the Board of Directors of the Company at its meeting of November 22, 2018, while its amendments were approved at the meetings of the Board of Directors of September 28, 2020 and June 15, 2021. The Regulation records, among other things, the responsibilities, duties and obligations of the members of the Committee and is posted on the Company's website (http://www.flexopack.com), according to the explicit legislative requirement of article 10 par. 4 of law 4706/2020. 1.3.2 In accordance with the current Operating Regulation of the Audit Committee and taking into account the size, business model and scope of activities of the Company, the Audit Committee meets at regular intervals and extraordinarily when required. In any case, the Audit Committee meets four (4) times a year, while at least two (2) times a year it holds a meeting with the statutory Auditor of the Company, without the presence of the members of Management. The Audit Committee may also meet by teleconference. 1.3.3 All its members participate in the meetings of the Audit Committee in person. The Audit Committee has the discretion to invite, whenever deemed appropriate, key executives involved in the management of the Company, including the CEO, Chief Financial Officer (CFO) and the Head of the Audit Department, to attend specific meetings or specific items on the agenda and provide any necessary information, clarifications or explanations. 1.3.4 The Audit Committee is convened by its Chairman by invitation which is communicated in any appropriate way to the other members at least two (2) days before the meeting. The invitation must include at least the date, time and items on the agenda clearly, otherwise decisions may be taken as long as none of the members of the Committee object to the meeting and the decision being taken. 1.3.5 The decisions of the Audit Committee are taken by an absolute majority of its members. In case of a tie, the casting vote of the Chairman shall prevail. 1.3.6 The discussions and the decisions of the Audit Committee are recorded in minutes which are signed by the members present in accordance with article 93 of law 4548/2018. The minutes are available to all members of the Audit Committee and, at the discretion of its Chairman, to the Board of Directors. 1.3.7 The Audit Committee may elect a secretary to observe the minutes of its meetings and to support its work in general. 1.4 Responsibilities of the Audit Committee According to the provisions of article 44 of law 4449/2017, the responsibilities of the Audit Committee include the following: (a) informs the Company's Board of Directors of the outcome of the statutory audit and explains how the statutory audit contributed to the integrity of the financial information and about the role of the Audit Committee in that process; FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 67 (b) monitors the financial information process at all stages and where applicable, the sustainability reporting process, including the electronic reporting process as referred to in Article 154B of Law 4548/2018, as well as the process required for specifying the information submitted in accordance with the sustainability reporting standards approved under Article 154A of Law 4548/2018, and makes recommendations or proposals to ensure its integrity; (c) monitors the effectiveness of the internal control, quality assurance and risk management systems of the enterprise and, where appropriate, its Internal Audit Department, regarding the financial information of the audited entity and the submission of sustainability reports of the enterprise, including the relevant electronic reporting procedure referred to in article 154B of Law 4548/2018 without violating or affecting the independence of that entity; (d) monitors the statutory audit of the annual and consolidated financial statements and ensures the submission of the annual and consolidated sustainability report and, in particular, its performance metrics, taking into account any findings and conclusions of the competent authority in accordance with paragraph 6 of Article 26 of Regulation (EU) No. 537/2014; (e) supervises and monitors on an ongoing basis the independence of chartered accountants or audit firms and in particular the adequacy of the provision of non-audit services to the audited entity; (f) is responsible for the selection process of certified public accountants or audit firms and proposes the statutory auditors or audit firms to be appointed; (g) submits an annual report of the proceedings to the Annual Ordinary General Meeting of the Company's shareholders. 1.5 Number of Audit Committee’s meetings 1.5.1 During the closing year 2024, the Audit Committee met twelve (12) times and all its decisions were taken unanimously. During each meeting, the examination of all the items on the agenda was completed, after the required information notes and the relevant suggestions had been distributed, and the competent executives, the Certified Auditors and other persons were invited to participate, as the case may be in order to provide any necessary clarifications and / or explanations. 1.5.2 It is clarified that the Certified Auditor-Accountant of the Company, who performs the audit of the annual and semi-annual financial statements, provided with the approval of the Audit Committee authorized non-audit services to the Company amounting to 1,750 euros and is not related to any other relationship with the Company in order to comply with the provisions of Law 4449/2017 and thus ensure its objectivity, impartiality, integrity and independence, with the exception of ensuring services related to FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 68 the performance of the special tax audit required in accordance with the provisions of article 65A of law 4174/2013, as a result of which (audit) the "Annual Tax Certificate" is issued. 1.6 Proceedings of the Audit Committee The issues with which the Audit Committee dealt during the year 2024 as well as during the year 2025 until the publication of the present Report were the following: 1.6.1 Financial reporting process - External audit In the field of external audit and financial information processing, the Committee has taken the following steps: (a) was informed by the Chief Financial Officer of the financial statements of the Company and the Group for the year ended 31 December 2023 and of the principal matters of concern to the Financial Management in the preparation of the financial statements; (b) was informed of the accounting principles and policies applicable to the preparation of the financial statements, as well as of the consolidation basis and measurement methods used for the assets and liabilities contained in the financial statements; (c) reviewed the financial statements of the Company and the Group for the year 2023 before their approval by the Board of Directors and evaluated them in terms of their accuracy and completeness; (d) ascertained the agreement of the financial statements with the legally binding content and framework of their preparation and recommended their approval; (e) briefed the Board of Directors on the issues arising from the statutory audit, the contribution of the statutory audit to the quality and integrity of financial information and the role of the Audit Committee in this process; (f) verified compliance with the rules on the disclosure of financial statements, as well as the possibility of immediate, permanent and without any charge for access to them; (g) was informed by the Certified Auditor-Accountant about the most important issues of the audit for the year 2023, the risks that were assessed as the most important and how to deal with them and was informed about the final draft of the Audit Report for the year ended 31 st December 2023, (h) took note of the supplementary report of the Chartered Auditors - Accountants provided by Article 11 of the Regulation of the European Union (EU) 537/2014 on the financial statements of the Company and the Group, (i) submitted a proposal to the Annual Ordinary General Meeting of the Company's shareholders for the election of the Audit Company under the name "Grant Thornton Certified Auditors and Business Consultants Societe Anonyme" for the performance of the statutory audits of the annual and semi-annual financial statements for the year 2024, (j) was informed by the Certified Auditor - Accountant regarding the procedure and methodology that will be followed during the audit of the semi-annual and annual financial statements for the year 2024, with the planning and the schedule of its audit, as well as for the audit procedures to be followed, (k) confirmed the impartiality, objectivity, independence and integrity of the external auditors in accordance with the Code of Professional Ethics of the International Federation of Accountants, Regulation (EU) 537/2014 and Law 4449/2017, as well as the non-provision of any external , directive, suggestion or recommendation by the Management of the Company, FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 69 (l) was informed by the Certified Auditor-Accountant about the audit approach of the review of the interim financial statements of the first half of the year 2024 and became aware of the important issues of the audit, (m) supervised the correct and timely disclosure to the investing public of corporate announcements concerning financial information; (n) Reviewed their entire content and approved the provision of authorized non-audit services by the auditing company "Grant Thornton Certified Auditors and Business Consultants Societe Anonyme". (o) The Committee monitored the process of preparing the Sustainability Report, including the electronic submission of the Report in accordance with article 154B of Law 4548/2018 as well as the process carried out to specify the information submitted in accordance with the sustainability reporting standards approved under article 154A of Law 4548/2018. The Committee also submitted proposals to ensure the integrity of the above process. (p) It was accordingly informed about the outcome of the process that assured the submission of the Sustainability Report and provided the necessary explanations for its contribution to the Sustainability Report as well as for its role in the above process. (q) It monitored the mandatory audit of the process that assured the submission of the annual and consolidated sustainability report and in particular its performance, taking into account the findings and conclusions of the competent authority in accordance with paragraph 6 of article 26 of Regulation (EU) No. 537/2014. 1.6.2 Internal control system In the context of monitoring the effective operation of the Company's internal control system and the proper operation of the Internal Control department, the Audit Committee: (a) examined and evaluated the effectiveness and adequacy of the Internal Control Unit's procedures regarding the Company's financial information, without affecting in any way its independence; (b) monitored the effectiveness of internal control systems through the work of the Internal Control Unit and the work of the Chartered Accountant; (c) Confirmed the exclusive employment, personal and functional independence and objectivity in the performance of duties of the Head of Internal Audit Unit as well as the possession of the appropriate knowledge, professional experience and absence of any incompatibility. (d) reviewed the management of the Company's main risks, evaluating the methods used by the Company to identify and monitor the risks, as well as the treatment of the main ones and their proper disclosure; (e) was informed of the annual control program of the Internal Control Unit before its implementation and reviewed, assessed and approved it; (f) was informed and evaluated of the work of the Internal Control Unit and was informed of the reports of the Head of the Internal Control Unit; (g) inspected the proper functioning of the Internal Control Unit in accordance with professional standards and the applicable legal and regulatory framework in general; (h) had meetings with the Internal Auditor on issues that may have arisen during the audit process, in order to ensure the smooth operation of all individual Departments and Divisions of the Company; FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 70 (i) confirmed that the Internal Control Unit has constant and unhindered access to all the data and records of the Company, which are necessary for the performance of its duties, as well as to all the Departments of the Company, (j) examined the Operating Regulations of the Internal Control Unit of the Company and its compliance with the requirements of the applicable regulatory framework. (k) was informed by the regulatory compliance officer about the findings, proposals and recommendations in the framework of the conducted regulatory compliance audit and approved the annual work plan for 2025, (l) was informed about the 2024 risk management report and approved the annual action plan of the risk management unit for 2025. (m) monitored and reviewed the adequacy and effectiveness of the Corporate Governance System with a reporting date of 31.12.2023 and informed the Board of Directors about the result of its work. 1.6.3 Other The Committee also monitored and ensured that the Company's business activity served effectively the protection of environment, the health and safety of employees, as well as the local community and the public. It also thoroughly reviewed the provisions and regulations of the new Law 5164/2024 and in particular the newly introduced regulatory obligations, especially regarding the requirement to prepare Sustainability Reports. It also held meetings with the competent and specialized advisors with regard to the Company's proper compliance with the new legislative requirements and the new regulatory framework. Approved the content of the information that was provided to the shareholders during the Annual Ordinary General Meeting of 21 st June 2024 regarding Company's activities for the financial year 2023. ΙΙ. Remuneration and Nomination Committee 2.1 Establishment, term and members of the Remuneration and Nomination Committee 2.1.1 The Board of Directors of the Company in the context of immediate, substantial, full and effective compliance with the requirements and general regulations of articles 10-12 of law 4706/2020 (Government Gazette A 136/17.07.2021), as well as the adoption of corporate governance best practices, at its meeting of 14 July 2021 set up a single three-member Remuneration and Nomination Committee, in order to provide the necessary assistance and support to the Board of Directors on the one hand in the process of identifying and promoting appropriate persons for the staffing of Board of Directors, based on the existing Suitability Policy, and on the other hand during the process of preparation, evaluation and revision of the Remuneration Policy, with the aim of attracting and retaining competent executives. As members of the Remuneration and Nomination Committee were defined the following persons: 1) Aliki Benroubi of Sam Samouil, Independent, Non-Executive Member of the Board of Directors. 2) Ioannis Papamichalis of Efstratios, Independent, Non-Executive Member of the Board of Directors. 3) Georgios Ginosatis of Spyridonas, Non-Executive Member of the Board of Directors. The Remuneration and Nomination Committee during its meeting on 15 th July 2021 elected, among its members, as Chairman of it Mrs Aliki Benroubi of Sam Samouil. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 71 2.1.2 The term of the Remuneration and Nomination Committee is five years, ending on June 25, 2026, extended until the expiration of the deadline within which the next Ordinary General Meeting must convene, but in no case may it exceed six years. 2.2 Operation of Remuneration and Nomination Committee 2.2.1 The Remuneration and Nomination Committee (RNC) has an Operating Regulation, which was approved by the Board of Directors of the Company at its meeting of July 14, 2021. This Regulation records the organization and operation of the Remuneration and Nomination Committee, regulates its duties, responsibilities and obligations and of its members and is posted on the Company's website (http://www.flexopack.com), according to the explicit legislative provision of article 10 par. 4 of law 4706/2020. 2.2.2 In accordance with its Operating Regulation, the Remuneration and Nomination Committee meets regularly at least two (2) times a year and extraordinarily, when required by its members. 2.2.3 All its members participate in the meetings of the Committee in person. The Committee has the discretion to invite, whenever appropriate, key executives involved in the management of the Company, including the CEO, to attend specific meetings or specific items on the agenda and to provide any necessary arrangements or clarifications on them. 2.2.4 The meeting is convened at the invitation of the Chairman of the Committee and is being notified in any appropriate way to the other members at least two (2) days before the meeting. The invitation shall include at least the date, time and items on the agenda. The Remuneration and Nomination Committee may also meet by teleconference. 2.2.5 Decisions of the Committee shall be taken by an absolute majority of its members. In case of a tie, the vote of its Chairman shall prevail. 2.2.6 The discussions and decisions of the Committee are recorded in the minutes with the care of the Corporate Secretary, are signed by the members present and are at the disposal of the members of the Committee and the Board of Directors. 2.2.7 It is noted that the Committee may use any resources it deems appropriate, for the fulfillment of its purposes, including services by external consultants. In case of hiring an external consultant, the Committee is responsible for monitoring its work. 2.3 Responsibilities of Remuneration and Nomination Committee 2.3.1 In the context of compliance with the provisions of article 11 of law 4706/2020, the Committee on Remuneration and Nomination Committee: FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 72 (a) periodically reviews and formulates proposals to the Board of Directors regarding the Remuneration Policy submitted for approval to the General Meeting, in accordance with paragraph 2 of article 110 of Law 4548/2018, (b) makes proposals to the Board of Directors regarding the remuneration of persons falling within the scope of the approved Remuneration Policy of the Company; (c) reviews the information contained in the final draft of the Annual Remuneration Report, and provide its opinion to the Board of Directors, prior the submission of the Report to the General Meeting; (d) examines and submits proposals to the Board of Directors regarding the plans for granting options or granting shares to the members of the Board of Directors and the staff of the Company, as well as to the companies affiliated to it; (e) submits proposed performance targets for any variable remuneration of the members of the Board of Directors or goals associated with options for the granting of options or shares; (f) ensures and monitors the process of assessing the extent to which the performance criteria of persons falling within the scope of the approved Remuneration Policy are met; (g) makes proposals regarding the remuneration of the Company's executives and in particular of the head of the internal control unit; (h) submits proposals to the Board of Directors for any remuneration related business policy. 2.3.2 In the context of compliance with the provisions of article 12 of law 4706/2020, the duties of the Remuneration and Nomination Committee include the following: (a) the care, with the support of the Corporate Secretary, for posting on the Company's website and maintaining an up-to-date CV of each member of the Board of Directors throughout his/her term of office; (b) ensuring that the work of the Committee is reported, as well as the number of meetings in the Company's annual Corporate Governance Statement; (c) the annual assessment of the size, composition, independence criteria, balance of knowledge and skills of the existing Board of Directors, in accordance with the Company's Suitability Policy; (d) the submission of proposals on the content of the Suitability Policy, the training policy of the members of the Board of Directors and the Recruitment and Evaluation Procedures of senior executives of the Company; (e) the care for the communication of the respective position of a member of the Board of Directors to cover, planning, implementation and monitoring of the process of nomination of members of the Board of Directors; (f) taking care of the evaluation of the candidates based on the Suitability Policy and the recommendation to the Board of Directors of the candidate members of the Board of Directors; (g) the coordination of the periodic self-evaluation of the members of the Board of Directors and of its Committees (collective), of the Chairman and the Chief Executive Officer (individual); (h) timely information and submission of proposals to the Board of Directors regarding the succession plan for the members of the Board of Directors; (i) the assignment and monitoring of the work of external consultants which it may designate for the fulfillment of its purpose; (j) the care for the formation of the training program of the members of the Board of Directors, at the beginning and during their term of office, in accordance with the Training Policy followed by the Company. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 73 2.4 Number of meetings of Remuneration and Nomination Committee During the financial year 2024, the Remuneration and Nomination Committee met four (4) times with all members being present, and all decisions were taken unanimously. 2.5 Proceedings of the Remuneration and Nomination Committee (a) examined and evaluated in terms of adequacy, proportionality and suitability, the level of remuneration of all members of the Board of Directors which were approved by the Annual Ordinary General Meeting of shareholders of June 21, 2024 on the one hand for the fiscal year 2023 and for the fiscal year 2024, in order to determine whether the remuneration paid is commensurate with the duties, the degree of employment, the range of powers, the responsibilities and the performance of such persons as well as to whether they are in line with the prevailing financial conditions and the wider financial environment in which the Company develops its operation and activity, in order to avoid phenomena of payment of exorbitant fees and the consequent Exposure of the Company to excessive risks, (b) provided the necessary assistance for the preparation of the Remuneration Report of the members of the Board of Directors and other persons falling within the scope of the Remuneration Policy for the closing year 2024, in order for its content to fully comply with both the provisions of Article 112 of Law 4548/2018 as well as with the 01.03.2019 Guidelines of the European Commission regarding the standard presentation of the Remuneration Report in accordance with Directive 2007/36/EC, as amended by Directive (EU) 2017/828 for shareholders' rights. (c) provided the Company's Management with the required assistance in drawing up the Succession Policy and Procedure concerning the Members of the Board of Directors and the CEO, with the aim of ensuring, on the one hand, the orderly, efficient and smooth operation of the Board of Directors as well as the high level of quality and the appropriate recruitment of members, and on the other hand, the smooth continuity of the corporate entity along with the implementation of its business plan and strategy. (d) reviewed and re-assessed the appropriateness and effectiveness of the Operating Regulation, with the aim of identifying any proper, necessary, and imperative revisions or amendments in order to ensure the orderly and smooth operation. (e) examined and ascertained the fulfillment by the BoD’s Independent Non-Executive Members of the independence criteria and conditions, in accordance with the provisions of article 9, paragraph 1 and 2 of Law 4706/2020, as applicable. (f) examined and evaluated the suitability, on individual and collective basis, of the members of the Board of Directors of the Company. III. Corporate Announcements and Shareholder Services Unit The Company, being listed on a regulated stock market, according to the requirements of articles 19 and 20 of Law 4706/2020 possesses and operates Corporate Announcements and Shareholder Services Unit, which: (a) makes the necessary and required announcements in relation to regulated information in accordance with the provisions of Law 3556/2007 as applicable during the publication time of the present Report, as well as in relation to corporate events in accordance with the provisions of Law 4548/2018. The Company FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 74 proceeds as per above in order to inform accordingly the shareholders or beneficiaries of other securities of the Company. (b) is responsible for the Company's compliance with the obligations provided in article 17 of Regulation (EU) 596/2014, regarding the disclosure of privileged information, and in other applicable provisions, (c) has the responsibility of maintaining and updating the Company's share registry and is charged with the provision of immediate, accurate and equal information towards the shareholders and especially with the provision of support to shareholders regarding the exercise of their rights, in accordance with the applicable legislation and the Company's Articles of Association. The publication of the relevant information is always performed in a way that ensures the speedy and equal access of the shareholders and the investment community in general to all available information, both financial and non-financial. PART C – GENERAL MEETING Ι. The General Meeting 1.1 Introduction The General Meeting of Shareholders is the supreme body of the Company and is entitled to decide on each corporate case. Its decisions also bind the absent or dissenting shareholders. 1.2 Exclusive competence of the General Meeting 1.2.1 According to article 30 par. 1 of the current Articles of Association, the General Meeting is exclusively competent to decide on: (a) amendments to the Articles of Association (amendments are also considered the increases regular or extraordinary, as well as reductions in share capital); (b) the election of members of the Board of Directors and Auditors; (c) the approval of the overall management according to article 108 of law 4548/2018 and the discharge of the Auditors; (d) the approval of the annual and consolidated financial statements; (e) the distribution of annual profits; (f) the approval of remuneration or advance payment of remuneration according to article 109 of law 4548/2018, (g) the approval of the remuneration policy of article 110 and the remuneration report of article 112 of law 4548/2018, (h) the merger, division, conversion, revival, extension or termination of the Company; and (i) the appointment of liquidators. 1.2.2 They do not fall under the provisions of the previous paragraph: (a) capital increases or capital adjustment acts expressly assigned by law to the Board of Directors, as well as increases imposed by provisions of other laws; (b) the amendment or adaptation of provisions of the Articles of Association by the Board of Directors in the cases expressly provided by law; (c) the appointment by the Articles of Association of the first Board of Directors, FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 75 (d) the election in accordance with the Articles of Association of directors to replace those who have resigned, died or lost their status in any other way; (e) the absorption under Articles 35 and 36 of Law 4601/2019 of a societe anonyme company by another societe anonyme company that holds one hundred percent (100%) or ninety percent (90%) or more of its shares, (f) the possibility of distributing temporary dividends according to paragraphs 1 and 2 of article 162 of law 4548/2018 and (g) the possibility of distribution according to paragraph 3 of article 162 of law 4548/2018 profits or optional reserves in the current corporate year by decision of the Board of Directors, subject to publication. 1.3 Convening a General Meeting 1.3.1 The General Meeting of Shareholders is convened by the Board of Directors and meets at the headquarters of the Company or in the region of another Municipality within the region of headquarters, at least once every corporate year no later than the tenth (10th) calendar day of the ninth month after the end of corporate use. The General Meeting may also convene in the region of the Municipality where the headquarters of the Athens Stock Exchange are located. 1.3.2 The General Meeting meets extraordinarily whenever the Board of Directors deems it necessary or if requested by shareholders representing the percentage required by law and the Company's Articles of Association. 1.3.3 The procedures and rules of convening, participation and decision-making by the General Meeting are regulated in detail by the provisions of Law 4548/2018 and the Articles of Association of the Company. 1.3.4 From the procedures, forecasts and general arrangements mentioned below, it is clear that the Company's corporate governance system includes adequate and effective mechanisms for communicating with shareholders, in order to facilitate the exercise of their rights and the active dialogue with them (shareholder engagement), which is also confirmed by the relevant evaluation of the Corporate Governance System that took place during the closing year 2024 with a reporting date as of 31.12.2023. 1.3.5 The Board of Directors ensures that the preparation and conduct of the General Meeting facilitates the effective exercise of the rights of the shareholders, who are informed about all issues related to their participation in the General Meeting, including the items on the agenda and their rights during the General Meeting. In particular, in accordance with the provisions of Law 4548/2018, the Company posts on its website at least twenty (20) days before the General Meeting, in both Greek and English: • the invitation to convene the General Meeting, • the total number of shares and voting rights that the shares incorporate at the date of the invitation, • the forms to be used for voting by proxy or representative or, where applicable, for electronic voting, • the documents to be submitted to the General Meeting, FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 76 • a draft decision on each item on the proposed agenda or, if no decision has been proposed for approval, a comment from the Board of Directors, and • the draft decisions proposed by the shareholders, in accordance with paragraph 3 of article 141 of law 4548/2018, immediately after their receipt by the Company. 1.4 Participation in the General Meeting 1.4.1 In the General Meeting is entitled to participate and vote the natural or legal person who has the shareholder status at the beginning of the fifth (5th) day before the date of the General Meeting ("registration date"). Each share provides the right to one (1) vote. 1.4.2 For the Company is considered as a shareholder who is entitled to participate in the General Meeting and to exercise the right to vote the one that is registered at the date of registration in the Dematerialized Securities System (DSS) of the Societe Anonyme with the name "Greek Central Securities Depository SA" (GCSD) or the one identified as such based on the relevant date through the registered mediators or other intermediaries in accordance with the provisions of the legislation (law 4548/2018, law 4569/2018, law 4706/2020 and Regulation (EU) 2018/1212) as well as the Operating Regulation of the Greek Central Securities Depository SA (Government Gazette B 1007/16.03.2021). 1.4.3 The proof of shareholder status is made by any legal means and in any case based on information received by the Company until before the start of the General Meeting by GCSD or through the participating and registered intermediaries in the Central Securities Depository in any other case. 1.4.4 The exercise of the participation and voting rights does not presuppose the commitment of the beneficiary's shares or the observance of another similar procedure, which limits the possibility of selling and transferring them during the period between the registration date and the date of the General Meeting. 1.4.5 The recording date is also valid in case of postponement or repeated meeting, provided that the postponed or repeated meeting is not set at more than thirty (30) days from the recording date. If this does not happen or if in the case of the repeated General Meeting a new invitation is published, in accordance with the provisions of article 130 of Law 4548/2018), at the General Meeting participates the person who has the shareholder status at the beginning of the third (3rd) the day before the day of the postponement or the repeated General Meeting. 1.4.6 In article 25 par. 1 of the Company's Articles of Association has been provided the possibility of participation of the shareholders in the General Meeting from a distance in real time by audiovisual or other electronic means, without the physical presence of the shareholders at the venue. The shareholders who participate in the General Meeting through real-time teleconference, are taken into account for the formation of the quorum and the majority and can effectively exercise their rights during the General Meeting. Thus the shareholders have the possibility: (a) to monitor by electronic or audiovisual means the conduct of the General Meeting; FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 77 (b) to speak and address to the General Meeting orally during the General Meeting; (c) to vote in real time during the General Meeting on the items on the agenda; and (d) receive information on the registration of their vote. 1.5 Representation in the General Meeting 1.5.1 The shareholder participates in the General Meeting and votes either in person or through representatives. Each shareholder can appoint up to three (3) representatives. Legal entities participate in the General Assembly by appointing as their representatives up to three (3) natural persons. However, if the shareholder holds shares of the Company, which appear in more than one securities account, this restriction does not prevent that shareholder from appointing different representatives for the shares appearing in each securities account in relation to the General Meeting. A representative acting for more than one shareholder may vote differently for each shareholder. 1.5.2 The shareholder representative is obliged to notify the Company, before the beginning of the General Meeting, of any specific event that may be useful to the shareholders in assessing the risk that the agent will serve interests other than the interests of the represented shareholder. For the purposes of this paragraph, a conflict of interest may arise in particular when the agent: (a) is a shareholder who exercises control of the Company or is another legal person or entity controlled by that shareholder; (b) is a member of the Board of Directors or in general of the management of the Company or a shareholder who exercises control of the Company, or of another legal entity or entity controlled by a shareholder who exercises control of the Company; (c) is an employee or auditor of the Company or shareholder exercising control of the Company, or of another legal person or entity controlled by a shareholder exercising control of the Company; (d) is a spouse or first-degree relative of one of the natural persons referred to in (a) to (c) above. 1.5.3 The appointment and revocation or replacement of the shareholder's proxy or representative is made in writing or electronically and is submitted to the Company at least forty eight (48) hours before the scheduled date of the General Meeting. 1.6 Quorum and majority of the General Meeting 1.6.1 According to the law and the Articles of Association of the Company, the General Meeting is in quorum and meets validly on the issues of the agenda, when shareholders are present or representing to it shareholders representing at least one fifth (1/5) of the paid-up capital. 1.6.2 If this quorum is not reached, the General Meeting convenes again within twenty (20) days from the date of the canceled meeting, following an invitation at least ten (10) days in full. At this repeating meeting the General Meeting is in quorum and meets validly on the issues of the initial agenda, whatever the part of the paid-up capital represented in it. A newer invitation is not required if the original invitation had already specified the place and time of the repeating meeting, provided that there is at least five (5) days between the canceled meeting and the repeating meeting. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 78 1.6.3 The decisions of the General Meeting are taken by an absolute majority of the votes represented in it. 1.6.4 Exceptionally for decisions concerning: (a) the change of the Company's nationality; (b) the change in the objective of this Company; (c) the increase of shareholders' liabilities; (d) the regular increase of capital, unless required by law or by capitalization of reserves; (e) the reduction of the capital, unless it is done, in accordance with paragraph 5 of article 21 or paragraph 6 of article 49 of law 4548/2018, as in force, (f) changing the way profits are distributed; (g) the merger, division, conversion, revival of the Company; (h) the extension of the duration or dissolution of the Company, (i) the provision or renewal of authority to the Board of Directors to increase the capital, in accordance with paragraph 1 of article 24 of law 4548/2018, as in force, as well as (j) any other case provided by law that the General Meeting decides by an increased quorum and majority; The General Meeting is in quorum and meets validly on the issues of the agenda when shareholders present or represented to it half (1/2) of the paid-up capital. 1.6.5 If the above quorum is not reached, the General Meeting convenes again within twenty (20) days from the date of the canceled meeting, after an invitation of at least ten (10) full days. At this repeating meeting, the General Meeting is in quorum and meets validly on the issues of the initial agenda, when shareholders present or representing at least one fifth (1/5) of the paid-up capital. A newer invitation is not required if the original invitation had already specified the place and time of the repeating meeting provided that there are at least five (5) days between the canceled meeting and the repeating meeting. 1.6.6 The decisions of the General meeting, in the cases of the previous paragraph are taken by a majority of two thirds (2/3) of the votes represented in the Meeting. 1.7 Minority shareholders’ rights The shareholders of the Company have, among other things, the rights that are provided in paragraphs 1, 2, 3, 5, 6 and 7 of article 141 of law 4548/2018: In particular: (a) At the request of shareholders, representing one twentieth (1/20) of the paid-up capital, the Board of Directors is obliged to convene an Extraordinary General Meeting of shareholders, setting a day of its meeting, which should not be more than forty five (45) days from the date of service of the application to the Chairman of the Board. The application contains the subject of the agenda. If a General Meeting is not convened by the Board of Directors within twenty (20) days from the submission of the relevant application, the convening is carried out by the requesting shareholders at the expense of the Company, by court decision, issued during the interlocutory proceedings. This decision defines the place and time of the meeting, as well as the agenda. The decision is not challenged by legal means. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 79 (b) At the request of shareholders, representing one twentieth (1/20) of the paid-up capital, the Board of Directors is obliged to include in the agenda of the General Meeting, which has already been convened, additional issues, if the relevant application reaches the Board of Directors fifteen (15) at least days before the General Meeting. The additional issues must be published or announced, under the responsibility of the Board of Directors, according to article 122 of law 4548/2018, at least seven (7) days before the General Meeting. The request for inclusion of additional items on the agenda is accompanied by a justification or a draft decision for approval at the General Meeting and the revised agenda is made public in the same way as the previous agenda, thirteen (13) days before the date of the General Meeting and at the same time is made available to the shareholders on the Company's website, together with the justification or the draft decision submitted by the shareholders according to the provisions of paragraph 4 of article 123 of law 4548/2018. (c) Shareholders representing one twentieth (1/20) of the paid-up capital have the right to submit draft decisions on issues included in the initial or any revised agenda of the General Meeting. The relevant application must be submitted to the Board of Directors at least seven (7) days before the date of the General Meeting, and the draft decisions are made available to the shareholders as defined in paragraph 3 of article 123 of law 4548/2018, six ( 6) at least days before the date of the General Meeting. The Board of Directors is not obliged to register items on the agenda or to publish or disclose them along with justification and draft decisions submitted by shareholders, in accordance with paragraphs 2 and 3 of article 141 of law 4548/2018, if their content is obviously contrary to law or good morals. (d) At the request of a shareholder or shareholders representing one twentieth (1/20) of the paid-up capital, the Chairman of the General Meeting is obliged to postpone once only the decision of the General Meeting, Ordinary or Extraordinary, on all or certain issues, setting a day of continuation of the meeting, the one defined in the request of the shareholders, which, however, may not be more than twenty (20) days from the date of postponement. The postponed General Meeting is a continuation of the previous one and there is no need to repeat the formalities of publishing the shareholders' invitation. New shareholders can also participate in this General Meeting, observing the relevant participation formalities and the provisions of paragraph 6 of article 124 of law 4548/2018 apply. (e) At the request of any shareholder, submitted to the Company at least five (5) full days before the General Meeting, the Board of Directors is obliged to provide the General Meeting with the requested specific information about the Company's affairs, insofar as these are related to the items on the agenda. There is no obligation to provide information when the relevant information is already available on the Company's website, in particular in the form of questions and answers. Also, at the request of shareholders, representing one twentieth (1/20) of the paid-up capital, the Board of Directors is obliged to announce to the General Meeting, if it is Ordinary, the amounts paid, during the last two years, to each member of the Board of Directors or the directors of the Company, as well as any provision in benefits to these persons for any reason or contract of the Company with them. In all the above cases, the Board of Directors may refuse to provide the information for a substantial reason, which is recorded in the minutes. Such a reason may be, in the circumstances, the representation of the requesting shareholders in the Board of Directors, in accordance with articles 79 or 80 of law 4548/2018. In the cases of this paragraph, the Board of Directors may respond uniformly to shareholders' requests with the same content. (f) At the request of shareholders, representing one tenth (1/10) of the paid-up capital which is submitted to the Company at least five (5) full days before the General Meeting, the Board of Directors is obliged to FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 80 provide the General Meeting with information on the course of corporate affairs and the assets of the Company. The Board of Directors may refuse to provide the information for a substantial reason, which is recorded in the minutes. Such a reason may be, in the circumstances, the representation of the requesting shareholders in the Board of Directors in accordance with articles 79 or 80 of Law 4548/2018, provided that the respective members of the Board of Directors have received the relevant information in a sufficient manner. (g) At the request of shareholders, representing one twentieth (1/20) of the paid-up capital, voting on an item or items on the agenda shall be by open ballot. 1.8 Other rights of shareholders In addition to the right to participate and vote in the General Meeting, the Company's shareholders have the following rights, in accordance with the current Articles of Association and the provisions of Law 4548/218: (a) dividend right The minimum dividend is set at a rate of thirty-five percent (35%) of the net profit, after deducting the ordinary reserve and the other credit accounts of the income statement, which do not derive from the realized profit. By decision of the General Meeting taken with an increased quorum and majority, the above percentage can be reduced, but not be set below ten percent (10%). Non-distribution of the minimum dividend is permitted only by decision of the General Meeting of shareholders, taken with the increased quorum of paragraphs 3 and 4 of article 130 of Law 4548/2018 and via a majority of eighty percent (80%) of the share capital represented at the General Meeting. The amount to be distributed is paid to the shareholders within two (2) months from the decision of the Ordinary General Meeting of shareholders that approved the annual financial statements and the dividend distribution. The date and method of dividend payment is stated through relevant announcements on the Company's website and on the respective platform of the Athens Exchange. According to Greek legislation, dividends that are not being collected by their beneficiaries for a period of five (5) years from the date on which they became claimable are time-elapsed and the relevant amounts are transferred on definite basis to the Greek State. (b) right to information Ten (10) days before the Ordinary General Meeting, the Company is obliged to post on its website the annual Financial Statements, as well as the relevant Reports of the Board of Directors and the Auditors. (c) pre-emptive right In the event of a share capital increase that is not being made by a contribution in kind or through the issuance of bonds convertible into shares, a pre-emptive right is granted for the entire new capital or bond loan towards the existing shareholders at the time of issuance, on a basis that is proportional with their participation in the existing share capital of the company. (d) right to participate in the liquidation proceeds PART D – INTERNAL COTROL AND RISK MANAGEMENT SYSTEM Ι. Internal Control FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 81 1.1 As Internal Control System (ICS) is defined all the internal control mechanisms and procedures, including risk management, internal control and regulatory compliance, which continuously covers every activity of the Company and of its significant subsidiaries and contributes to its safe and efficient operation. 1.2 The Internal Control System aims at: • the consistent implementation of the business strategy of the Company and of its significant subsidiaries through the effective utilization of all available resources, • the recognition and management of the essential risks related to the business activity and operation of the Company and of its significant subsidiaries, • the efficient operation of the Internal Control Department, • to ensure the completeness and reliability of the data and information required for the accurate and timely determination of the financial position of the Company and the preparation of reliable financial statements, • in compliance with the current legislative and regulatory framework in general, as well as the internal regulations governing the operation of the Group. 1.3 The internal control unit: a) Monitors, controls and evaluates: aa) the application of the operating regulation and the internal control system, in particular with regard to the adequacy and accuracy of the provided financial and non-financial information, risk management, regulatory compliance and the corporate governance code adopted by the Company, ab) quality assurance mechanisms, ac) the mechanisms of corporate governance, and ad) the observance of the commitments contained in prospectuses and the Company's business plans regarding the utilization of funds raised from the regulated market. b) Draws up reports towards the audited units with findings regarding the section a), about the risks arising from those areas and with proposals for improvement, if any. These reports, after incorporating the relevant opinions from the audited units, the agreed actions, if any, or the acceptance of the risk of not taking any counter action, the limitations in the scope of control, if any, the final internal proposals for audit and the response of the Company's audited units to the above proposals, are submitted quarterly to the audit committee. c) Submits at least every three (3) months to the audit committee reports which include the most important issues and the relevant proposals, regarding the duties of sections a) and b) hereof. The audit committee presents and submits those reports along with relevant comments to the Board of Directors. Additionally, periodic evaluation of the Internal Control System is carried out every three (3) years by an independent and objective evaluator, according to the more specific provisions of the decision of the Board of Directors of the Hellenic Capital Market Commission with number 1/891/ 30.09.2020, as it is in effect following its amendment by the decision of its Board of Directors numbered 2/917/17.06.2021 FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 82 (Government Gazette B΄ 3040/2021). The latter determines the time, procedure, frequency and any other specific issues required for the evaluation of the Internal Control System as well as the characteristics of persons that should be involved in this process. 1.4 The head of the Internal Control Unit: (a) is appointed by the Board of Directors of the Company, following a proposal of the Audit Committee, (b) is a full-time and exclusive-employment employee, personally and functionally independent and objective in the performance of his duties; (c) possesses the appropriate knowledge and relevant professional experience. (d) reports administratively to the Chief Executive Officer and operationally to the Audit Committee. (e) may not be appointed as head of the Internal Control Unit, member of the Board of Directors or member with voting rights in Committees of a permanent nature of the Company and has close ties with anyone who holds one of the above properties in the Company or in a company of the Group. Furthermore, the number of internal auditors of the Internal Control Unit must be proportional to the size of the Company, the nature, scale, scope and complexity of the Company's activities, the number of its employees, its geographical points of activity, number of its operating and executive units as well as audited entities in general. Mr. Stavros Meggoulis performs the duties of head of the Company's Internal Control Unit. 1.5 The head of the Internal Control Unit: (a) attends the General Meetings of shareholders; (b) provides in writing any information requested by the Hellenic Capital Market Commission, cooperate with it and facilitate in every possible way the task of monitoring, control and supervision by the competent Supervisory Authority; (c) submits to the Audit Committee an annual audit program and the requirements of the necessary resources, as well as the effects of the resource constraint or the audit work of the Unit in general. The annual audit program is prepared based on the risk assessment of the Company, after taking into account the opinion of the Audit Committee. (d) has free and unhindered access to any organizational unit of the Company and is aware of any data, file and information required for the effective and efficient performance of duties. 1.6 The Internal Control Unit has an Operating Regulation, which was prepared in accordance with the provisions of articles 15 and 16 of Law 4706/2020 (Government Gazette A 136/17.07.2020), as in force, was approved and entered into force by 15.07. 2021 decision of the Board of Directors of the Company following a proposal of the Audit Committee and defines the principles and the basic operating framework of the Unit, determines the fundamental principles and rules that the Internal Auditors must follow in the performance of their duties, describes the responsibilities, the duties and obligations of the Unit. 1.7 The executives of the Internal Control Unit must comply with: (a) the International Professional Practices Framework; (b) the International Standards for the Professional Application of Internal Audit (IIA Standards); (c) the Code of Ethics (IIA Code of Ethics); FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 83 (d) the applicable legislative and regulatory framework in general; (e) the Internal Operating Regulation of the Company. 1.8 The executives of the Internal Control Unit in the performance of their duties must apply the following principles: (a) integrity (demonstration of honesty, diligence, consistency and responsibility in the performance of their duties, compliance with the legal and regulatory framework and internal procedures of the Company), (b) objectivity (demonstration of the greatest possible impartiality in the collection, evaluation and communication of information related to the audits carried out, non-acceptance of gifts that may affect their professional judgment, immediate disclosure of any event that could be considered contrary to their independence), (c) Confidentiality (respect and management of the information obtained in the performance of their duties with due diligence, avoidance of the use of such information for personal gain or in a manner harmful to the Company, taking appropriate measures to protect this information), (d) Adequacy of skills (possession of knowledge, skills and experience required to provide internal control services, continuous improvement of the adequacy, efficiency and effectiveness of their services, exercise of appropriate professional judgment). Results of the evaluation process of the Internal Control System (ICS) of FLEXOPACK S.A. for the period 17-07-2021 to 31-12-2022, in accordance with article 14, paragraph 3 case j and paragraph 4 of Law 4706/2020 and the relevant Decisions of the Board of Directors of the Hellenic Capital Market Commission. The Company, by decision of its Board of Directors, assigned to Grant Thornton Certified Auditors Business Consultants Societe Anonyme the project "Provision of Internal Control System Assessment Services", with the aim of evaluating the adequacy and effectiveness of the Internal Control System ("ICS") of Flexopack S.A. and its most significant subsidiaries, Flexopack Polska Sp. Z.o.o. and Flexopack Pty Ltd with a reporting date as of 31/12/2022, in accordance with the provisions of section i of paragraph 3 and paragraph 4 of article 14 of Law 4706/2020 and the Decision 1/891/30.09.2020 of the Board of Directors of the Hellenic Capital Market Commission, as applicable (the "Regulatory Framework"). The above evaluation of the Internal Control System was successfully completed in March 2023 and covered the following subjects: the Control Environment, Risk Management, Control Mechanisms and Safety Controls, the Information and Communication System as well as the Monitoring of the Internal Control System of the Company and its most significant subsidiaries. The Conclusion of the Independent Evaluator, namely Ms. Athena Moustakis, Certified Public Accountant with Registration Number 28871 and Partner of Grant Thornton, which is included in the final evaluation report of the adequacy and effectiveness of the Internal Control System (ICS) dated 24/03/2023, is articulated as follows: From the conducted work and the evidence obtained regarding the assessment of the adequacy and effectiveness of the Internal Control System of the Company and its most significant FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 84 subsidiaries, no weaknesses were identified that could be deemed material weaknesses in the Company's ICS according to the Regulatory Framework. This result is another confirmation that the Company is in constant compliance with the legislative and regulatory framework that governs the Internal Control System and adopts the best practices for the legal and orderly operation of the Group's Internal Control System. ΙΙ. Risk Management 1.1 The Company has established and implements a Risk Management Policy and Procedure, which aims at the timely and effective treatment of risks that may have a negative impact on the achievement of its objectives. Risk Management is a systematic process that aims at the timely and effective identification, analysis, control, management and monitoring of any type of risk involved in the operation of the Company. The steps to follow in the annual Risk Management process are as follows: • Preparation of Risk Profile Revision Proposals • Submission of Risk Profile Revision Proposals • Conducting Risk Management Group Meetings • Approval of Risk Profiles and Action Plan • Monitoring of Action Plan - Reports. The Board of Directors of the Company has the overall responsibility of the risk management framework related to the operations and the achievement of the objectives of the Company. The Company’s Management takes the decisions related to the risk assessment, plans and applies the respective safety controls in relation to risks, also based on the level of risk acceptance. 1.2 The risk management system implemented by the Company is based on four axes: • risk identification, • risk assessment, • risk management and • risk monitoring and reporting 1.2.1 Risk identification The risk identification initiates and takes into account the definition of the strategy and the individual business objectives of the Company. The key factors that can threaten the achievement of these goals are then identified. In this context, the Board of Directors of the Company determines the risk appetite and risk tolerance. The results of the risk identification process are recorded in the Company Risk Register, which is a comprehensive mapping of significant risks. 1.2.2 Risk assessment Each risk is initially assessed in terms of its inherent degree (inherent risk). The Risk Profile also includes the response to each risk, i.e. the existing actions of the Company in order to manage the respective risk. For each action (policy, procedure and safety valve) the Risk Owner is defined, while for each risk there is FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 85 the possibility of defining more than one action. The Risk Owners, taking into account the overall actions in the Risk Response, assess the level of residual risk that may remain after the risk management actions. 1.2.3 Risk management In cases where the residual risk is greater than the risk tolerance available by the Company, additional required actions are determined in order to effectively manage the risks. These actions constitute the Action Plan for the desired response to the risk through the improvement of the safety valves and in general of the Internal Control System of the Company. The Risk Profile as well as the Action Plan are approved by the Chief Executive Officer (CEO) and submitted to the Board of Directors. 1.2.4 Risk monitoring and reporting Risk Owners have the primary responsibility to oversee the effective operation of the individual defined actions and to inform the response actions to each risk with any possible changes. The Head of Risk Management supports the organization and the effective performance of the process and is also responsible for coordinating the work required for the Risk Identification and Assessment Process. 1.3 During the process of drawing up the Company's financial statements, specific safeguards exist and are also being applied, with regard to the use of commonly accepted, based on international practices, tools and methodologies. The main safeguards related to the preparation of the Company's financial statements and reports are the following: ✓ appropriate staffing of the financial services unit with people who have adequate theoretical training and experience to carry out the responsibilities assigned to them, ✓ assignment of responsibilities and authorizations to both the top and middle level managers of the Company, while preserving the required segregation of responsibilities, ✓ adoption of consistent policies and methods in monitoring the Accounting departments of all Group companies, which contain definitions, accounting principles and instructions for the preparation of financial statements and other reports, ✓ conducting audits and verifications between the various information systems, ✓ existence of transaction approval limits, ✓ existence of approval levels for carrying out specific transactions or actions (e.g. payments, collections, legal transactions, etc.), ✓ carrying out accounting and other entries based on the necessary documents, ✓ carrying out inventory measurement processes in relation to raw materials, semi-finished and finished products and of other inventory on a systematic basis, according to explicit and clearly written instructions, ✓ carrying out reconciliations of customer, supplier, loan and bank account balances to ensure the correct representation of the Company's assets and liabilities, ✓ performing comparisons between actual, historical and budgeted income and expenditure accounts with sufficient detailed explanation of any significant discrepancies, FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 86 ✓ development, upgrading and maintenance of advanced IT infrastructure that ensures the correct and accurate depiction of financial figures and data, ✓ securing the Company's information systems through the existence of procedures for keeping backup files, protection mechanism against viruses, external interventions and malicious actions, ✓ ensuring access to email accounts. Through all the above procedures and mechanisms, an attempt is being made to limit and minimize the risks associated with the preparation of reliable and accurate financial statements. PART Ε΄ - CORPORATE GOVERNANCE SYSTEM 1.1 The Company, in compliance with the article 13 of Law 4706/2020, has adopted and is applying since the enactment of the particular law a Corporate Governance System (CGS) in accordance with the provisions of articles 1 to 24 of the above law, taking into consideration the size, nature, scope and complexity of its business activities. 1.2 The Corporate Governance System in detail consists of: a) Internal Control System (ICS) which encompasses and includes the risk management and regulatory compliance system, as analyzed above. b) Procedures for the prevention, detection and suppression of cases of conflict of interest in accordance with the detailed definitions in section 4.9.3, I, (c) of Part A of the present. c) Communication mechanisms with the shareholders in order to facilitate the exercise of their rights and cultivate an active dialogue (Shareholder engagement), and finally d) Remuneration policy, which contributes to the business strategy, serves the long-term interests and facilitates the sustainability of the Company. 1.3 In accordance with the article 4 of Law 4706/2020 as it is currently in force, the Corporate Governance System is periodically evaluated at least every three (3) financial years in terms of its implementation and effectiveness. This facilitates the Company to take the appropriate actions in order to address deficiencies that are being identified each time. 1.4 The Company, by decision of its Board of Directors, in full, effective and proper compliance with the current legislative and regulatory framework, assigned the project called "Provision of Corporate Governance System Evaluation Services" to "D. I. Paschos and Associates Law Firm". The assignment concerned the assessment of the adequacy and effectiveness of the Company's Corporate Governance System (CGS) with a reporting date as of 31/12/2023 in accordance with the current legislative and regulatory framework (article 4 of Law 4706/2020). 1.5 The aforementioned evaluation of the Corporate Governance System was successfully completed in February 2024, with the relevant objective of the process being the following: a) the adequacy and effectiveness of the Internal Control System including the risk management and regulatory compliance systems. b) the adequacy and effectiveness of the procedures for the prevention, detection and suppression of cases of conflict of interest. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 87 c) the adequacy and effectiveness of the communication mechanisms with the shareholders so as to facilitate the exercise of their rights and strengthen the active – constructive dialogue. d) the remuneration policy in order to determine whether it actually serves the business strategy, the long-term interests of the Company as well as its sustainability. e) the adequacy of the Company's Operating Regulation in accordance with article 14 of Law 4706/2020. f) any deviations from the utilization of the funds raised in accordance with article 22 of Law 4706/2020 (if such a case is applicable). g) the disposal of any assets of the Company in accordance with the article 23 of Law 4706/2020, and finally h) the degree of compliance of the Company with the Greek Corporate Governance Code (GCGC) of the Hellenic Corporate Governance Council that the Company has adopted and applies. 1.6 The conclusions from the above evaluation, summarized per thematic section, are as follows: Regarding the Internal Control System, any findings (based on those mentioned in Part D of the present Corporate Governance Statement) are evaluated as having extremely low importance and significance, which cannot place any obstacles to the Company’s operations. In addition, based on the actual intention of the Company to handle accordingly even these findings, no other incident was identified which could be viewed as significant weakness of the Company’s Internal Control System. Regarding the procedures for the prevention, detection and suppression of cases of conflict of interest, it was ascertained that there is adequacy and effectiveness of the Policy and Procedure for preventing and dealing with conflict of interest situations. This Policy has been adopted and applied by the Company pursuant to the decision of the Board of Directors dated 16/07/2021. Regarding the communication, exercise of rights and active dialogue with the shareholders (Shareholder engagement), it was found that due to the combination of the Operating Regulation of the Shareholder Service and Corporate Announcements Department as well as the specific actions taken by the Head of the particular department, there is a secure channel of communication with shareholders that ensures the easier exercise of their rights and the promotion of an active dialogue with the Company. With regard to the Remuneration Policy adopted and applied by the Company, it was established that the particular policy has been characterized to a maximum extent by the principles of appropriateness, correctness, fairness and the proportionality of the remuneration paid and of the other benefits granted. The remuneration was also in alignment with the profitability, capital adequacy, competitiveness and sustainable development of the Company, whereas the primary objective was to maximize the long-term economic value and facilitate the optimal expansion of the Company’s interest. Regarding the deviations that emerged from the use of funds raised, it was found that no case of application of Article 22 of Law 4706/2020 has been identified and consequently there was no such object to be evaluated. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 88 With regard to the disposal of the Company's assets in accordance with the article 23 of Law 4706/2020, it was found that no transaction falling under the above regulatory framework has taken place and consequently there is no such object to be evaluated. Finally, regarding the Company's compliance with the Greek Corporate Governance Code (GCGC) of the Hellenic Corporate Governance Council, it was found that the respective deviations as reflected in the particular Corporate Governance Statement were accompanied by full, specific and justified explanation, confirming the Company's compliance with the fundamental principle of GCGC which calls for the need to "comply or explain". The result of the evaluation certifies that the Company complies with the legislative and regulatory framework that governs the Corporate Governance System and adopts the best practices with the aim of legally, efficiently and orderly applying but also continuously improving its Corporate Governance System. PART F’ – ADDITIONAL INFORMATION 1.1 Introduction The Article 10 par.1 of the EU Directive 2004/25/EC dated April 21 st 2004, relating to takeover bids, states the following as regards to companies whose total shares are listed on an regulated according to the terminology of Law 4548/2018 market: “1. Country members ensure that the companies mentioned in article 1 paragraph 1 disclose detailed information as regards to the following: a) their capital structure, including securities that are not listed on an organized market of a country-member and, according to the case, indication of different categories of shares with the rights and obligations linked to each share category and the percentage of the total share capital such represent; b) all the limitations on transfer of securities, such as limitations on the ownership of securities or the obligation to receive approval by the Company or other shareholders, with the reservation of article 46 of Directive 2001/34/EC; c) the significant direct or indirect holdings (including indirect holdings through pyramid structures or cross- holdings) according to the definition of article 85 of directive 2001/34/EC; d) the owners of any kind of securities that provide special control rights and the description of such rights. (e) the system of control of any employee share scheme where the control rights are not exercised directly by the employees; (f) any restrictions on voting rights, such as limitations of the voting rights of holders of a given percentage or number of votes, deadlines for exercising voting rights, or systems whereby, with the company's cooperation, the financial rights attaching to securities are separated from the holding of securities; (g) any agreements between shareholders which are known to the company and may result in restrictions on the transfer of securities and/or voting rights within the meaning of Directive 2001/34/EC; (h) the rules governing the appointment and replacement of board members and the amendment of the Articles of Association; (i) the powers of board members, and in particular the power to issue or buy back shares; FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 89 (j) any significant agreements to which the company is a party and which take effect, alter or terminate upon a change of control of the company following a takeover bid, and the effects thereof, except where their nature is such that their disclosure would be seriously prejudicial to the company; this exception shall not apply where the company is specifically obliged to disclose such information on the basis of other legal requirements; (k) any agreements between the company and its board members or employees providing for compensation if they resign or are made redundant without valid reason or if their employment ceases because of a takeover bid.” 1.2 The above information is included in detail in Chapter 6 of the present Report. 1.3 As regards to items c, d, f, h and i of par. 1 of article 10, the Company states the following: • as regards to item c’: the important direct or indirect participations of the Company are the following: (a) FLEXOPACK POLSKA Sp.z.o.o, (subsidiary) in which the Company participates with a stake of 100% of shares and voting rights. (b) FLEXOPACK TRADE AND SERVICES DOO BEOGRAD, (subsidiary) in which the Company participates with a stake of 100% of shares and voting rights. (c) FLEXOPACK INTERNATIONAL LIMITED, (subsidiary) in which the Company participates with a stake of 100% of shares and voting rights. (d) FLEXOPACK PTY LTD, (subsidiary), in which the Company participates with 100% through its subsidiary "FLEXOPACK INTERNATIONAL LIMITED" (indirect participation), (e) FLEXOPACK PROPERTIES PTY LTD: (subsidiary), in which the Company participates with 100% through its subsidiary "FLEXOPACK INTERNATIONAL LIMITED" (indirect participation), (f) FLEXOPACK NZ LIMITED: (subsidiary), in which the Company participates with 100% through its subsidiary "FLEXOPACKPTYLTD" (indirect participation), (g) FLEXOPACK TRADE AND SERVICES UK LIMITED: (subsidiary), in which the Company participates with 100% through its subsidiary "FLEXOPACK INTERNATIONAL LIMITED" (indirect participation), (h) FLEXOPACK FRANCE: (subsidiary), in which the Company participates with 100% through its subsidiary "FLEXOPACK INTERNATIONAL LIMITED" (indirect participation), (i) FLEXOPACK USA INC.: (subsidiary), in which the Company participates with 100% through its subsidiary "FLEXOPACK INTERNATIONAL LIMITED" (indirect participation), (j) FLEXOPACK IRELAND LIMITED: (subsidiary), in which the Company participates with 100% through its subsidiary "FLEXOPACK INTERNATIONAL LIMITED" (indirect participation), (k) INOVA PLASTICS AEBE: (affiliate), in which the Company participates with 50% of the shares and voting rights and (l) VLACHOU BROS SA: (affiliate), in which the Company participates with a percentage of 47.71% of the shares and voting rights. Moreover, the significant direct or indirect holdings in the voting rights of the Company, according to the definition of provisions of articles 9 through 11 of l. 3556/2007, are the following: FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 90 (a) Stamatis Ginosatis, percentage of 30.64% (direct participation) (b) Georgios Ginosatis, percentage of 17.36% (direct participation) • as regards to item d’: there are no kind of securities (including shares), that provide special control rights. • as regards to item f΄: there are no known limitations on voting rights (such as limitation of voting rights on owners of a specific percentage or number of shares, deadlines to exercise voting rights, or systems through which with the cooperation of the Company financial rights emanating from shares are distinguished by the ownership of the shares). As regards to exercising voting rights during the General Meeting, extensive reference is made in Part C of the present Corporate Governance Statement. • as regards to item h΄: regarding the appointment and replacement of Board members and regarding the amendment of the Company’s Memorandum of Association, there are no rules that differ from those stated by Law 4548/2018, as currently in effect. Such rules are described in detail in Part A of the present Corporate Governance Code. • as regards to item i΄: there are no special authorities of the members of the Board of Directors as regards to the issuance or buyback of shares. It is noted that pursuant to a relevant decision of the Annual Ordinary General Meeting of Shareholders of 16 June 2023, the Board of Directors of the Company was granted the authority to purchase a maximum of 10% of the Company’s existing shares (by including the entire number of treasury shares held by the Company following a previous share repurchase plan to the above upper limit), within a period of twenty-four (24) months from the date of the above decision, i.e. up until 10/06/2025, and in accordance with the terms and restrictions set by article 49 of Law 4548/2018, with a purchase price range between three Euros (3.00 €) per share (threshold) and eight Euros (8.00 €) per share (ceiling), of the above range determined also in relation to the intense volatility of the markets, as a result of the current geopolitical uncertainty. At the date of preparation and approval of this Report, the Company held 96,450 treasury shares. • points e’, g’, i’ and ia; do not apply. PART G – SPECIAL STATEMENTS 1.1 During the closed corporate year 2024, the Board of Directors carried out an annual review of the corporate strategy, the main business risks faced by the Company in the sector in which it operates, as well as the systems of internal control applied by the Company and found the following: ✓ The corporate strategy is implemented appropriately and in accordance with the planning of the competent Directorates, in order for the Company to continue to stand out for the promotion of innovative products and services, the establishment of long-term relationships of trust and the creation of a sense of intimacy with its partners and transacting parties, thus developing further its business model, ✓ The main areas of business and financial risk of the Company as well as the issues that may have a significant impact on its financial statements, according to the size and complexity of its activities are included and are in detail analyzed as well their addressing in the relevant Section of the Management Report of Board of Directors and finally ✓ the internal control is carried out in accordance with the current legislative and regulatory framework and the principles of the Code of Ethics, and covers the main activities of the company, in order to determine the adequacy of the management and organization systems of the audited entity FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 91 to diagnose any irregularities, errors, weaknesses and possible fraud that may result in mismanagement and/or loss of assets and to verify the reliability of the measurement and presentation of the financial figures that constitute the image of the entity. 1.2 The Board of Directors of the Company declares and confirms hereby that the Audit Company, which is in charge of carrying out the mandatory audit of the annual and semi-annual Financial Statements (corporate and consolidated), as well as the issuance of the annual tax certificate and tax compliance report, provided with the approval of the Audit Committee authorized non-audit services to the Company amounting to 1,750 Euros and therefore no direct or indirect impact exists on the objectivity, integrity, reliability and effectiveness of the statutory audit. This Corporate Governance Statement is an integral and special part of the Annual Report (Management) of the Board of Directors of the Company. SECTION H Group’s course and outlook for the current financial year 2025 In view of the strong export orientation of the Group, it should be noted that its prospects, results and course for the fiscal year 2025 are directly related to the conditions prevailing most importantly in the global, and on the other hand in the domestic economy and marketplace. The following factors and conditions that exist as of today, raise concerns in a reasonable manner regarding the Company's course for the year 2025 and in particular: 1. The ongoing war conflict between Russia and Ukraine, along with the crisis prevailing in the Gaza Strip and the wider Middle East region with rather inevitable consequences on the stability and security of the global economy. 2. The fact that the ongoing crisis in the broader Middle East region has generated serious issues in terms of transport across the Suez Canal. This is turn has made it difficult for our products to access markets, mainly Australia, as it significantly lengthens delivery times and generally creates problems in the supply chain along with increased transport costs. In order to tackle supply chain issues, the Company has taken all the necessary measures, such as the use of air transport, resulting into a significant increase in transport costs. 3. Another factor relates to the significant and unjustified increase of energy costs, which have risen to especially high levels due to ongoing unfavorable conditions such as the war in Ukraine and also due to the significant distortion of the electricity market in Southeast Europe. 4. Weak international demand coming mainly from Europe, due to intense inflationary pressures observed in food prices, which have weakened consumer demand. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 92 5. The maintenance of relatively high interest rates internationally and particularly in the Eurozone, despite their gradual de-escalation, may exert upward pressure on the cost of debt in both the public and private sectors and might lead economies to a slowdown or even recession. 6. The imposition of tariffs on our products exported to the US market. Following the above, the degree of uncertainty and insecurity still remains high thus limiting any ability to extract reliable, safe and objective forecasts for the future. Therefore, the Management maintains a cautious attitude regarding any impact on the broader prospects of the Group as well as of the Company whereas it cannot rule out the possibility of a negative effect on the overall performance, financial position and the course of both the Company and the Group during the financial year of 2025. The Management of the Group with a high sense of responsibility towards the employees, the customers, the suppliers, the partners and the investors, closely monitors and systematically evaluates all possible risk factors, which may affect the financial position, activities and results of the Group and has been taking all the appropriate, each time, measures to ensure the smooth operation and business continuity of the Group. In any case and despite the prevailing conditions of uncertainty as well as volatility, it should be noted that the Group, both at the reporting date of the annual Financial Statements and at the date of their approval, maintains satisfactory capital adequacy and liquidity and continues to be fully consistent with its liabilities to suppliers, government agencies, insurance companies and other creditors. At the same time, the Group takes all the necessary steps to absorb the shocks of financial turmoil and to maintain the respective employment positions. Following the above, the Group's strategy, which is oriented towards flexibility and continuous adaptation to the current conditions, is summarized as follows: - Improvement and continuous upgrade of the spectrum of produced products, with an emphasis on high- quality product diversification compared to competition, - creating new innovative products capable of meeting wider and more demanding market needs, as well as to satisfy the customer requirements and needs, - Further enhancement of the current modern production methods in order to meet the targets of reduction of energy consumption, of a lower carbon footprint and facilitate the essential contribution to sustainable development, - Further penetration of the international markets via the maintenance or expansion of the Company’s partnerships aiming at the utilization of the Group’s knowhow, - Further and efficient strengthening of the infrastructure and specifically of the production facilities and mechanical equipment of both the Company and the subsidiaries of Group in USA, Poland and Australia, with the objective to even faster and more effectively serve the customer base in the geographical areas where the companies are located, in order to boost the growth potential in the respective markets, and finally, - Continuous development of the organizational and operating structures as well as procedures aiming at the further increase of efficiency, and the greater reduction of costs. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 93 Sustainability Statement The Group has prepared a Sustainability Report consistent with the new sustainability disclosure requirements of the EU Directive (Corporate Sustainability Reporting Directive), as incorporated by Law 5164/2024. In this manner, the Group seeks maximum transparency and completeness in communicating its performance in sustainability related matters, responding to stakeholder expectations and regulatory requirements. Contents of Sustainable Development Report Section Page ESRS-2 – General Disclosures 94 ESRS-2-BP – Basis for Preparation 94 ESRS-2-SBM – Strategy 100 ESRS-2-IRO – Impact, Risk and Opportunity Management 114 ESRS-2-GOV – Governance 119 ESRS-E – Environmental information 125 ESRS E1 – Climate Change 125 ESRS E2 – Pollution 136 ESRS E5 – Circular Economy 137 EU Taxonomy Report 2024 146 ESRS-S – Social Information 151 ESRS S1 – Own Workforce 151 ESRS-G – Corporate Governance Information 159 ESRS-G1 – Business Conduct 159 FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 94 ESRS-2 – General Disclosures ESRS-2-BP – Basis for Preparation General Basis for Preparation of the Sustainability Statements (BP-1_01-06) The 2024 Sustainability Statement of Flexopack has been prepared on a consolidated basis in accordance with the European Sustainability Reporting Standards (ESRS). The report has been prepared at group level and refers to our activities in Greece (FLEXOPACK SA), Poland (FLEXOPACK POLSKA), France (FLEXOPACK FRANCE), and Australia (FLEXOPACK PTY). The preparation of the IROs was carried out by considering the company’s entire value chain, to the extent that information was available. However, the targets and metrics apply only to Flexopack’s activities. Flexopack Group also includes the following subsidiaries, which were not taken into account in the preparation of the present report, as they are trading companies or do not have offices. Disclosures Regarding Specific Circumstances (BP-2_01-20) For the topic of Climate Change and the related indicators, the following calculation basis was adopted: Scope 1: • All physical assumptions used (such as mass and energy densities) were derived from secondary sources, including fuel suppliers, government publications, and tools (e.g., the UN GHG Protocol and IPCC guidelines). These physical properties were used to convert activity data where necessary. • In cases where the biomass content of mobile fuels was not disclosed by the supplier at the time of purchase, an assumption was made based on the 2024 report from the U.S. Department of Agriculture, specifically the report titled "Biofuel Mandates in the EU by Member State." This approach was primarily applied to the Group’s companies in Greece and Poland. • All emission factors used, related to both stationary and mobile combustion, were sourced from the UN GHG tool and IPCC publications. Company Country Type Flexopack Trade and Services Limited United Kingdom Trading company Flexopack Trade and Services DOO Beograd (Novi Beograd) Serbia Trading company Flexopack international Limited Cyprus Holding company Flexopack NZ Limited New Zealand Trading company Flexopack USA, Inc USA (United States of America) Trading company Flexopack Ireland Limited Ireland Trading company FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 95 Scope 2: • The specific location-based emission factors and energy mix, regarding the European residual mix, were sourced from the 2023 report by the Association of Issuing Bodies for Poland and France. For Australia, where market-based emission factors and energy mix were not available, these values were estimated based on the energy provider’s portfolio. For the topic of Circular Economy and the related indicators, the following calculation basis was adopted: Waste: For the assumptions related to waste management and treatment, assumptions were made regarding the amount of waste directed to landfill. For the entity in Greece, this was based on reports from companies in the same sector, while for the entity in Australia, it was based on a 2024 government report on waste management and recycling. The level of accuracy of the indicators is characterized as medium. The most accurate indicators are those for which direct activity data and emission factors were available, while the least accurate are those for which no direct data was available, and the information was derived from third-party reports or estimates. Flexopack ensures that the disclosed quantitative indicators and monetary figures are based on reliable and verified data sources. At present, there are no significant indicators or financial figures in the company's sustainability report that are subject to a high level of uncertainty. The least accurate indicators are those related to the amount of waste sent to landfill, under the topic of Circular Economy. There are no significant sources of measurement uncertainty in the sustainability data reported by Flexopack. The company relies on direct measurements, operational data, and industry standards to ensure the accuracy and consistency of the information reported. In the case of indicators related to the amount of waste sent to landfill, no direct and specialized information was available from waste management entities. If uncertainties arise, they will be clearly disclosed with explanations regarding their variability and potential impact. Flexopack's sustainability report is based on direct measurements where possible, minimizing the need for assumptions or approximations. Where estimates are required, the company follows standard industry methodologies and applies conservative assumptions to ensure accuracy and reliability. Judgment is exercised in cases where regulatory frameworks allow flexibility, and external verification is sought wherever possible. For indicators related to the amount of waste sent to landfill, the estimates were based on the most recent and relevant industry reports. In the preparation of this report, the company has not deviated from the established definitions of time horizons. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 96 Regarding value chain data, no quantitative data was used concerning upstream and downstream activities. Wherever possible, directly measured or verifiable data was used. The company does not use indirect sources for estimating value chain data. All measurements are based on directly measured or verifiable data; therefore, this disclosure is not applicable. There have been changes in the preparation and presentation of sustainability information, and the methodology for assessing double materiality has been updated to reflect changes in business activities, stakeholder priorities, and evolving regulatory requirements. As a result, certain topics, such as water consumption, have been reassessed and deemed non-material for the current reporting period. This change ensures alignment with the most relevant sustainability risks and opportunities affecting the company. Compared to previous years’ reports, no material errors were identified in the sustainability disclosures of the prior period. The updates in the current report reflect methodological improvements rather than corrections of past data. In preparing this report, apart from the Taxonomy Regulation, no other reporting standards were used. For the calculation of carbon emissions, the UN GHG framework and ISO 14064 were applied. The report has been verified by Grant Thornton, which issued a limited assurance report on page 174. List of sustainability topics assessed as material (implementation phase) The full list of sustainability topics assessed as material includes: E1.1 Climate Change Adaptation E1.2 Climate Change Mitigation E1.3 Energy E2.1 Air Pollution E2.3 Soil Pollution E2.7 Microplastics E5.1 Resource Inputs, including Resource Use E5.2 Resource Outputs related to Products and Services E5.3 Waste G1.1 Corporate Culture G1.2 Supplier Relationship Management G1.3 Prevention and Detection of Corruption and Bribery G1.4 Incidents of Corruption and Bribery G1.6 Payment Practices The full list of sustainability topics assessed as material in the phase-in stage: • Biodiversity and ecosystems (ESRS E4) • Own workforce (ESRS S1) • Consumers and end-users (ESRS S4) FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 97 Disclosure of how the business model and strategy consider impacts related to sustainability matters assessed as material (phase-in) Below are the material matters in accordance with the phase-in provisions, and how the company’s business model and strategy take them into consideration: S1.1 – Working Conditions S3 – Affected Communities Affected communities and working conditions are considered when opening new production units and commercial entities. S4 – Consumers and End-users Flexopack Group is a B2B business; therefore, we do not have a direct relationship with the end consumers who use our packaging products. Since the products are designed to contain food, despite the fact that the company does not have direct contact with end users, the highest food safety standards are applied. Converters are responsible for informing consumers and end-users of the product. Consumer safety and the impact of product information are key elements of the company’s business strategy. Description of time-bound targets set for material sustainability matters (implementation phase) and progress towards achieving them The Group has set targets regarding emissions and occupational health and safety. Targets for the remaining material matters have not yet been established. Climate Change: Flexopack is subject to Article 19 of the Greek Climate Law, which mandates the annual monitoring, reporting, and verification of greenhouse gas (GHG) emissions. The company must achieve a 30% reduction in emissions by 2030, compared to 2019 levels. Compliance is ensured through a verification body and annual reporting. Health and Safety: Flexopack aims for zero workplace accidents and occupational illnesses through advanced safety and training programs during the 2024–2030 period. Description of actions taken to identify, monitor, prevent, mitigate, remediate or cease actual or potential negative impacts related to material sustainability matters (implementation phase), and the outcomes of these actions Climate Change Adaptation and Mitigation In accordance with Article 19 of the Greek Climate Law, Flexopack is committed to reducing GHG emissions by 30% by 2030. Actions include energy efficiency upgrades, optimization of production processes, and exploration of alternative fuel sources to reduce the company’s carbon footprint. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 98 Energy The company is improving energy efficiency through process optimization and equipment upgrades. The integration of renewable energy sources is being evaluated to support long-term sustainability and regulatory compliance. Air Pollution Flexopack monitors and reports air pollutant emissions in accordance with national regulations. The company adopts Best Available Techniques (BATs) to reduce volatile organic compound (VOC) emissions from production processes. Soil Pollution Flexopack ensures proper waste management and spill prevention measures to avoid soil contamination. The company follows strict environmental guidelines for the storage and disposal of hazardous materials, in line with best practices and legal requirements. Microplastics Measures are implemented to minimize microplastic leakage, including improved filtration systems and stricter quality control in plastic production. Ongoing research explores the use of biodegradable materials where feasible. Resource Inputs – Use of Resources Efforts focus on efficient resource use, including optimization of raw material consumption, increased recycling rates, and enhanced energy efficiency in manufacturing. Supplier engagement initiatives aim to reduce the environmental footprint of sourced materials. Resource Outputs Related to Products and Services Flexopack prioritizes efficient material use and waste reduction in production processes, while complying with food safety regulations that prohibit the use of recycled plastic in food packaging. Instead of incorporating recycled materials, the company optimizes packaging design to reduce material use, explores alternative sustainable materials that meet food-grade specifications, and enhances operational efficiency to minimize waste. Additionally, Flexopack participates in closed-loop waste management systems, ensuring the recovery and utilization of plastic waste that does not come into contact with food. The company actively monitors regulatory developments to align its sustainability strategy with future legislative changes. Corporate Culture The company promotes a culture of integrity, transparency, and sustainability. Employee training programs focus on ethical business conduct, environmental responsibility, and compliance with international standards. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 99 Whistleblower Protection A specially designed whistleblower protection mechanism ensures that employees and stakeholders can report unethical behavior or compliance violations confidentially and without fear of retaliation. This system is regularly monitored and reviewed to maintain its effectiveness. Corruption and Bribery Flexopack enforces a zero-tolerance policy against corruption and bribery, ensuring compliance with national and international regulatory frameworks. The company maintains internal control mechanisms, and regular audits and risk assessments are conducted to identify potential vulnerabilities and strengthen the anti-bribery framework. The whistleblower mechanism also supports the confidential reporting of concerns, reinforcing a culture of transparency and accountability. Disclosure of sustainability-related metrics for material matters (implementation phase) Climate Change Adaptation and Mitigation Greenhouse Gas (GHG) Emissions (Scope 1 & 2) [in metric tons of CO₂ equivalent] Energy Total energy consumption, both electrical and thermal [in MWh], and percentage of renewable energy sources [%]. Air Pollution Air pollutant emissions (e.g., NOx, SOx, VOCs, particulate matter) [in kilograms per pollutant]. Soil Pollution – Substances of Concern – Microplastics Plastic waste generated and properly managed [in kilograms]. Resource Inputs – Use of Resources Total material consumption [in metric tons] and percentage of recycled content used [%]. Resource Outputs Related to Products and Services Percentage of packaging materials designed for recyclability [%]. Corporate Culture / Whistleblower Protection Transparency in complaints and whistleblower protection. Corruption and Bribery Number of reports and employee training. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 100 ESRS-2-SBM – Strategy Strategy, Business Model, and Value Chain (SBM-1_01-24) FLEXOPACK is one of the leading European manufacturers of flexible packaging, offering a wide range of products, with a particular focus on co-extruded plastic film. The company possesses strong expertise in the flexible packaging sector. FLEXOPACK’s main market is in the food sector, with emphasis on meat, poultry, cheese, and fish/seafood products. The company has production facilities in Greece, Poland, and Australia, and is expanding internationally with seven (7) distribution centers, ensuring an extensive sales and distribution network to deliver high-level services to its partners. With a total workforce of 545 employees and revenue of €156,593,000 for 2024 (Sector Group: Manufacturing, C.22.22 Manufacture of plastic products), Flexopack is considered one of the strong players in the Greek economy. No other business segments contribute to the company's revenue beyond those stated above. Regarding the description of sustainability-related targets in terms of significant product and service groups, customer categories, geographical areas, and stakeholder relationships, performance indicators (KPIs) have not yet been set for specific products or services. However, the senior management and the Board of Directors are considering the future adoption of targets as part of implementing the company’s sustainability strategy. Products and Services The Group promotes the development and distribution of low-carbon footprint products with a circular approach, tailored to the needs of both consumers and its customers. Key initiatives include: • Optimization of energy consumption in product manufacturing. • Production of goods using recycled raw materials. • Transition to lighter and more environmentally friendly packaging solutions. These initiatives support the Group's strategy to reduce Scope 1 & 2 emissions by 30% until 2030. Markets and Customer Categories The Group operates in international markets and focuses on flexible plastic packaging, maintaining a strong presence in the following categories: • Red Meat / Poultry / Dairy / Fish & Seafood • Non-Food Category The Group’s market expansion strategy includes: • Strengthening its presence in countries with high demand for sustainable innovations • Adapting the product portfolio to meet environmental and social requirements FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 101 Description of the Business Model and Value Chain (SBM-1_25) FLEXOPACK’s business model creates sustainable value for stakeholders, the environment, and society at large. These products are produced, distributed, and managed with both positive and negative impacts in mind, aiming to achieve the company's strategic goals and foster economic growth. Description of Inputs and the Approach to Collecting, Developing, and Securing Inputs The methodology follows the EFRAG Implementation Guidance on Materiality Assessment (December 2023 edition) and aligns with the GRI Universal Standards 2021. The assessment followed these steps: - Value Chain Analysis and ESG Topic Identification: Identified ESG touchpoints across upstream, downstream, and core processes of Flexopack and defined a framework of ESG topics for further analysis. - Compilation of a comprehensive list of potentially material topics through benchmarking with competitors, international standards (SASB, MSCI, S&P), and previous Flexopack materiality assessments. - Comparison with ESRS topics and creation of a shortlist: The identified topics were compared and aligned with the ESRS topics and validated by Flexopack representatives. - Stakeholder consultation and topic prioritization: A questionnaire with 34 questions was sent to 17 stakeholders (senior executives, employees from various departments and levels, customers, suppliers, and NGOs), who were asked to rank the topics based on their financial materiality and/or impact materiality. The final critical topics identified were: • Climate Change • Pollution • Water • Circular Economy • Human Resources • Consumers and End Users • Corporate Governance Interviews were conducted with senior executives from the following departments: • Internal Audit • Quality Assurance • Production • Marketing • Human Resources The double materiality analysis is a highly strategic and valuable process for Flexopack, and its results are being reviewed by the company’s senior management and the Board of Directors for further action. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 102 Description of the Key Characteristics of the Upstream and Downstream Value Chain and the Company's Position in It (SBM-1_28) Flexopack Value Chain Mapping: A Comprehensive Analysis Flexopack’s value chain involves a structured and well-integrated approach to the production, distribution, and recycling of plastic packaging materials. The process begins with the procurement of raw materials and continues through production, quality control, distribution, and consumption by end-users. Additionally, the company implements a waste management and recycling strategy to ensure sustainability. Upstream Activities: The Foundation of Production The initial stage of the value chain begins with the procurement and preparation of raw materials, which determine the quality and functionality of the final products. Raw Material Procurement The company sources its raw materials from petrochemical processors, which produce polymer pellets, the basic raw material used in plastic packaging. Raw Material Preparation The R&D department develops new solutions and techniques for improved packaging performance. Upon receiving the raw materials at Flexopack’s facilities: - Quality control and proper storage are carried out. - The polymer pellets are blended with additives, colorants, and stabilizers. - Heat drying is applied to remove moisture, ensuring the final product’s quality. Core Production: Transforming Raw Materials into Packaging The production process includes: - Processing, molding, and forming plastic films or sheets. - Surface treatment (Corona Treatment) to improve ink adhesion. - Printing and drying of surfaces to ensure durability and quality appearance. Quality Control and Packaging Control checks are performed at every stage of production. Waste Management The Group partners with licensed waste management providers to handle production waste responsibly. Intangible Assets Key intangible assets refer to non-physical resources that provide competitive advantage and are essential to the business model and value creation. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 103 Main categories of key intangible resources include: - Intellectual Property (IP) – Patents, trademarks, copyrights, and trade secrets protect the company’s innovations, brand, and creative content. Flexopack holds over 50 patents in its portfolio, both at European and international level. - Brand Equity – A strong brand fosters customer loyalty, trust, and recognition, enabling premium pricing power, customer retention, and smoother market entry for new products. - Organizational Culture and Human Capital – The company’s workforce, leadership, and knowledge base drive innovation, efficiency, and strategic execution. Downstream Activities: Distribution, Use, and Customer Interaction Post-Production: Transportation and Distribution • Digital order and inventory management system in place. • Products are transported to distribution points in collaboration with logistics partners. Supply Chain Flow • Products are shipped to industries and wholesalers. End Users • Hypermarkets & Supermarkets (for food and consumer goods packaging) • Manufacturers (Flexopack packaging integrated into their production lines) • Retailers & Distributors (product availability on the market) • Consumers (used in daily applications: food, industrial wrapping) FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 104 Interests and Views of Stakeholders (SBM-2_01-12) The key stakeholders of Flexopack include: • Shareholders, investors, and capital providers • The Board of Directors • Suppliers, business partners, and service providers • Employees • Customers • Governmental and regulatory authorities • The business community • Local community groups • Non-Governmental Organizations (NGOs) For each group, the company has established communication channels, which are described in detail here: FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 105 The identified stakeholders exert a direct impact or influence on the Company’s long-term sustainable development. Stakeholders, either directly or indirectly and each with a varying degree of significance, influence the production process, Flexopack’s environmental protection efforts, and its contribution to the local community. Stakeholder Group Communication Method Communication Frequency o General Meeting of Shareholders Annual o Analyst Presentations Ongoing o Financial Report o Sustainability Report o Group Website (Press Releases) Board of Directors o Board Meetings Ongoing o Procurement Department o Regular contact/visits with suppliers and partners o Sustainability Report o Social Media o Participation in international exhibitions o Group Website o Sustainability Report o Social Media o Regular meetings and announcements o Events o Group Website o Social Media o Consultation with government and institutional representatives at national and/or regional level o Conferences and Events o Corporate Publications and Articles o Financial Report o Sustainability Report o Social Media o Conferences, Associations, and Business Networks o Corporate Publications and Articles o Group Website o Sustainability Report o Social Media o Communication Channels o Communication with local government, local institutional bodies, and associations o Studies and Corporate Reports o Sustainability Report o Social Media o Sustainability Report o Social Media Business Community (e.g., Business Associations, Industry Peers) Annual Society – Local Community Groups (e.g., Media, Social Organizations, Local Authorities) Annual Non-Governmental Organizations (NGOs) Annual Customers Ongoing Employees Ongoing Governmental and Regulatory Authorities (e.g., Ministries, Organizations, Regulatory Bodies) Ongoing Shareholders, Investors, Capital Providers Suppliers, Business Partners, and Service Providers Ongoing FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 106 For the purposes of this ESG Report, stakeholders participated in the Double Materiality Assessment process in order to identify the key impacts, risks, and opportunities related to Flexopack’s ESG issues. The results of the double materiality assessment, along with the ESG Report, are submitted to the Board of Directors for approval before publication. Furthermore, stakeholder input contributes to the enhancement of the company’s risk register, risk mitigation strategies, and overall strategic approach. Description of Modifications to the Strategy and/or Business Model (SBM-2_08) Factors such as national and European legislation, as well as changing consumer preferences, are systematically monitored and influence the way the company adjusts its operational decisions. However, these factors have not led to fundamental changes in the company’s business model or strategy. Description of How Governance, Management, and Supervisory Bodies Are Informed About the Views and Interests of Affected Stakeholders Regarding Sustainability-Related Impacts (SBM-2_12) The company’s management has been informed about the results of the Double Materiality Assessment and the company’s risk register. An annual customer satisfaction survey is conducted and communicated to the Sales Director and the Customer Service Department. The Legal Department informs the management team of any legislative changes that may affect the company’s business model and strategy. Material Impacts, Risks, and Opportunities and Their Interaction with Strategy and Business Model (SBM-3_01–07) Description of material impacts identified through the materiality assessment: Actual Negative Impact – Greenhouse Gas Emissions Greenhouse gas emissions within Flexopack’s value chain are significant due to their long-term impact on global climate change. Emissions originate from upstream activities (e.g. raw material suppliers and transportation), own operations (e.g. manufacturing processes and energy consumption), as well as downstream activities (e.g. final use, disposal, and recycling). Monitoring and reducing emissions is critical for compliance with regulatory requirements. Actual Negative Impact – Energy-Intensive Production Processes Energy consumption throughout Flexopack’s operations is a critical factor, as it leads to greenhouse gas emissions. Given the global momentum toward sustainability and climate targets, the company’s production processes contribute to its environmental footprint. This impact is significant both for Flexopack and the industries it serves, making energy efficiency a major issue. Actual Negative Impact – Energy Consumption/Production Improving energy efficiency and adopting renewable energy sources throughout Flexopack’s value chain can significantly reduce greenhouse gas emissions and contribute to climate change mitigation. On the downstream side, lighter packaging materials lower fuel consumption during transport, while innovations in recyclability help reduce energy demand in waste processing. In production, transitioning to cleaner FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 107 energy sources enhances energy security and reduces dependence on fossil fuels. On the upstream side, suppliers who adopt renewable energy and efficiency measures contribute positively, though the impact is limited due to the energy-intensive nature of petrochemical production. Actual or Potential Negative Impact – Substances of Concern Flexopack’s production process uses certain hazardous substances, such as pigments and solvents. However, due to the nature of the final products and their use in food packaging, strict procedures are applied to eliminate any potential negative impacts and product contamination. Potentially, substances of concern may also exist in upstream activities, such as chemical additives and residues from processes and cleanings. On the downstream side, such substances may be produced through incineration practices. Nonetheless, these processes are carefully controlled and have only moderate impact. Actual Negative Impact – Microplastics in Packaging Waste The increasing presence of microplastics in the environment is a major concern. As packaging materials degrade, microplastics can be released into ecosystems, leading to long-term environmental contamination. This issue can affect marine life, soil quality, and ultimately human health. Growing global pressure for sustainable packaging solutions could expose Flexopack to risk if it does not effectively address the environmental impact of microplastics. Actual Negative Impact – Air Emissions from Industrial Activities Flexopack’s upstream activities, such as raw material processing, generate non-greenhouse gas (non- GHG) air pollutants, including particulate matter (PM), volatile organic compounds (VOCs), and nitrogen oxides (NOₓ), which can adversely affect local ecosystems and public health. These pollutants may cause respiratory and cardiovascular problems in local populations. However, the impact is assessed as moderate due to regulatory oversight and the emission controls implemented by Flexopack. The company uses advanced emission control technologies, including low-emission machinery and waste management practices, to minimize air pollution. Despite these efforts, the local impact of air pollution remains significant, though not catastrophic, with emissions clearly maintained below environmental safety limits. Actual Impact – Soil Pollution in the Value Chain Soil pollution from upstream activities is significant due to oil extraction and chemical processing, which contribute to soil degradation and contamination from hazardous byproducts. Downstream, the improper disposal of plastic films, landfilling of waste, and incineration further burden the soil with toxic residues and chemical substances. Flexopack’s activities may face risks from industrial waste, leaks, and mismanagement of production residues, such as polymer dust and chemical additives. Managing these risks is critical to preventing soil contamination from production and transportation activities. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 108 Actual Negative Impact – Resource Inputs The resource inputs required for Flexopack’s operations have high environmental and economic impact, particularly due to the company’s dependence on raw materials. The extraction, transportation, and processing of these materials contribute to natural resource depletion and loss of biodiversity. This issue directly affects sustainability, resource availability, and environmental health, making it essential to address in order for the company to remain competitive and socially responsible in the long term. Negative Impact – Resource Outputs Flexopack’s production and distribution processes generate substantial resource outputs with high energy demands. Despite improvements in sustainable sourcing and production efficiency, the company still relies on fossil-fuel-based plastics and energy-intensive supply chains. While efforts toward circular economy transition have begun, the dependence on virgin materials and high energy consumption contribute to the company’s environmental burden. Positive Impacts Positive Impact – Increased Resource Efficiency through Circular Economy The shift to circular models enhances Flexopack’s market position and reduces its environmental footprint. Positive Impact – Sustainable Packaging Solutions at Flexopack Climate change is one of the most critical global challenges, and companies are increasingly expected to contribute to its mitigation. Flexopack’s commitment to sustainable packaging solutions will strengthen its competitive advantage, align it with environmental regulations, and demonstrate its commitment to global sustainability efforts, with both immediate and long-term impacts on its market position and reputation. Positive Impact – Enhanced Resource Efficiency through Circular Solutions Flexopack’s commitment to sustainable packaging is particularly important in the global commercial environment. The ongoing transition to circular economy principles and increased demand for sustainable products position Flexopack as a leading force in driving positive environmental change. This opportunity is crucial for the company’s long-term business strategy and brand image. Positive Impact – Ethical Corporate Culture and Compliance Standards A strong ethical corporate culture and compliance with international standards have a significant impact on Flexopack’s reputation, employee satisfaction, and customer loyalty. Ethical business practices promote a transparent and trustworthy environment, helping the company attract and retain talented personnel, build stronger business relationships, and reduce the risk of legal consequences. In the long term, this enhances the company’s competitiveness and sustainable growth. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 109 Positive Impact – Stable Employment Flexopack is a key employer in the communities where it operates, particularly in the areas surrounding its production facilities in Greece, Poland and Australia. The Group, by applying contemporary human resources management practices, offering competitive salaries and benefits, and providing development incentives, creates a meritocratic and privileged work environment, as evidenced by the long-term retention of its employees. Positive Impact – Product Health and Safety Protection Compliance with the highest standards of product health and safety is a fundamental commitment of Flexopack to its consumers and end users. Flexopack’s mission is to extend the shelf life of food and ensure the highest safety standards for consumers. On the contrary, defective products that may negatively impact consumers can lead to legal action and reputational damage. Material Risks and Opportunities Description Based on Materiality Assessment (SBM-3_02) Risks Risk – Increasing Frequency of Climate-Related Hazards The risk of climate events such as extreme weather, rising ambient temperatures, and weather fluctuations poses a potential threat to Flexopack’s operations. The company relies on stable supply chains, efficient logistics, and consistent availability of raw materials — all of which are vulnerable to climate-induced disruptions. Climate change may lead to operational delays, increased costs, and potential damage to facilities, making climate risk a critical issue for Flexopack. Risk – Transition-Related – Economic Cost Flexopack faces medium to high financial risk from climate transition impacts across its value chain. Upstream suppliers are likely to face rising costs due to carbon pricing, stricter regulations, and a shift toward sustainable raw materials — potentially increasing procurement costs for Flexopack. Market uncertainty and shifting consumer preferences toward eco-friendly materials add further financial risks. Downstream, transport providers may face higher costs due to emissions regulations, while end-users and recycling operators may incur compliance costs related to recyclability and waste management. Carbon taxation and stricter reporting standards could further increase operating expenses. Additionally, regulatory pressures on plastic packaging may require R&D investments and production upgrades, leading to increased capital expenditures. Risk – Uncertainty in Achieving Carbon Neutrality by 2040 Achieving carbon neutrality is a critical goal for Flexopack, due to its long-term implications for sustainability, cost management, and regulatory compliance. Failure to meet this target could damage brand reputation, increase operational costs, and reduce investor and customer confidence, making this a top priority for the business. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 110 Risk – Energy Consumption / Production High energy prices significantly impact Flexopack’s costs for transport, storage, distribution, and waste management, reducing profit margins, especially when combined with regulatory measures such as carbon pricing. Energy consumption is a major cost factor in production, and any unfavorable change in energy prices or the energy mix poses considerable financial risks. The highest economic risk lies in upstream operations due to their energy-intensive nature, where even small price increases can have a large impact. However, improving efficiency and using renewable sources can help mitigate these risks. Risk – Non-Compliance with Environmental Regulations Air pollution from Flexopack’s industrial activities can have significant environmental consequences. Since production processes may involve energy-intensive machinery, there is a considerable risk of exceeding acceptable pollution thresholds, potentially leading to non-compliance with environmental requirements. Risk – Soil Pollution Soil pollution risks from upstream activities such as oil extraction and chemical processing can lead to fines, supply chain disruptions, and increased costs due to contamination from leaks, drilling waste, and heavy metals. Downstream, improper disposal of plastics and additives may cause chemical contamination and result in fines. Risk – Supply Disruption of Raw Materials – Resource Inputs Flexopack’s reliance on the upstream supply chain for raw materials is a significant risk to its long-term operations. Since raw materials are essential for production, any disruption in their supply could seriously affect operational efficiency and service capability. Risk – Waste Generation from Packaging Materials / Fines Packaging materials generate significant waste, and the growing global demand for packaging increases the risk of non-compliance with waste management regulations. This could lead to fines and damage Flexopack’s reputation, with potential business disruptions. Risk – Health and Safety As a company operating manufacturing facilities, employee health and safety is a top priority and a key concern for Flexopack. Accidents can lead to serious injuries, legal consequences, and reputational damage. To prevent these risks, the company allocates significant resources to training and audits to ensure compliance with all necessary health and safety practices. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 111 Risk – Incidents of Non-Compliance with Ethical Standards Non-compliance with ethical standards can result in serious reputational damage, legal consequences, and financial penalties, affecting both the short-term cash flow and the long-term value of the Group. Risk – Lack of Whistleblower Protection Insufficient protection for whistleblowers can undermine employee trust and discourage the reporting of unethical practices. Opportunities Opportunity – Enhancing Company Reputation and Market Leadership Flexopack places strong emphasis on the development of sustainable packaging. This effort not only differentiates the company but also meets the growing demand for environmentally friendly products. Sustainability is a key driver in the packaging industry, and a leadership position in this area strengthens the company's long-term market position and attracts customers and investors focused on responsible business practices. Opportunity – Diversification of Energy Mix with Clean Energy Sources Downstream, Flexopack has significant financial opportunities due to rising demand for sustainable and energy-efficient packaging solutions, which can enhance brand reputation and sales. Transitioning to a cleaner energy mix in its operations could reduce energy costs, limit exposure to fossil fuels, and boost profitability. Upstream, energy efficiency and the shift to renewable energy sources present moderate opportunities by reducing input costs and enhancing supply chain resilience. Partnerships with suppliers who adopt cleaner energy sources can offer long-term price stability. Positive Opportunity – Reducing Microplastics in Packaging As global awareness of plastic and microplastic pollution grows, addressing this issue is critical for long- term success in the packaging sector. Flexopack’s commitment to reducing microplastics in packaging not only aligns with increasing regulatory requirements but also meets the expectations of a growing consumer base that values sustainability. Transitioning to more environmentally friendly packaging alternatives is essential for minimizing environmental impacts and enhancing Flexopack’s market reputation. Positive Opportunity – Waste Reduction through Sustainable Packaging Reducing waste is vital for achieving Flexopack’s long-term sustainability goals, enhancing its reputation in a market that increasingly demands eco-friendly packaging. This shift aligns with global sustainability trends and customer expectations, thereby having a significant impact. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 112 Opportunity – Circular Economy for Resource Outputs Improving resource efficiency and reducing waste aligns with global sustainability goals. As an international company, Flexopack can enhance its environmental performance and strengthen its market position by optimizing packaging materials, increasing recycling rates, and minimizing waste. Opportunity – Enhancing Reputation through Ethical Culture and Compliance A strong ethical corporate culture has a direct impact on Flexopack’s reputation, consumer trust, and employee satisfaction. Since sustainability and ethics are important selection criteria for partners and customers, reinforcing these principles is a valuable opportunity for long-term growth. Opportunity – Whistleblower Protection Having a strong whistleblower protection system promotes a culture of transparency and trust, increases investor confidence, and strengthens regulatory compliance. Opportunity – Strengthening Supplier Relationships through Fair Practices Developing strong relationships with suppliers who implement fair practices ensures a stable supply chain, reduces risks, and fosters long-term partnerships that can lead to improved collaboration, loyalty, and mutual growth. This promotes a positive image and operational efficiency for Flexopack. Opportunity – Conducting Regular Audits and Monitoring to Detect Corruption Regular audits and continuous monitoring are essential tools for strengthening Flexopack’s internal controls, preventing corruption, and enhancing transparency. These measures not only reduce risks but also foster a culture of trust, leading to long-term operational efficiency and protection of the company’s reputation. Opportunity – Improving Operational Efficiency through Optimization of Supplier Payment Systems In the long term, optimizing the supplier payment system will significantly enhance operational efficiency. It will lead to stronger supplier relationships, smoother financial management, and better alignment with international business practices. Opportunity – Access to Products The growing demand for environmentally friendly products presents a major opportunity for Flexopack to differentiate itself in the competitive packaging market. This initiative also aligns with regulatory trends that promote more sustainable practices. By meeting these requirements, Flexopack can secure long-term growth, avoid potential regulatory fines, and attract environmentally conscious consumers — all of which positively influence financial performance. Opportunity – Responsible Marketing Practices Providing responsible marketing material that accurately represents Flexopack’s products is especially important, as it directly relates to building trust with customers and end-users and is a key element of Flexopack’s brand identity. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 113 Disclosure of Current and Anticipated Impacts of Material Issues, Risks, and Opportunities on the Business Model, Value Chain, Strategy, and Decision-Making Process, and How the Business Has Responded or Plans to Respond (SBM-3_03-12) Through the double materiality assessment, the Group has identified significant impacts (positive and negative), risks, and opportunities that affect the business model, value chain, and strategic decision- making. The assessment of Impacts, Risks, and Opportunities (IROs) refers to both the downstream and upstream value chain of Flexopack, not just its own operations. Current and Future Impacts The business model is designed to incorporate impacts, risks, and opportunities related to its operations, ensuring profitability while reducing environmental and social impacts. Through strategic interventions and investments, the Group addresses challenges, leverages opportunities, and adapts its operations to maintain resilience and foster growth. Waste Management & Circular Economy Waste generation in both upstream and downstream activities has led the Group to reduce non-recyclable packaging materials and ensure sustainable recycling practices. The business model is being adapted to incorporate recycled materials, reducing environmental footprint and enhancing brand reputation. CO₂ Emissions & Regulatory Frameworks Rising CO₂ emissions are driving new regulatory requirements from stakeholders. In response, the Group established a climate target in 2024, integrating it into the Sustainability Report (see ESRS E1 – Climate Change): - Reduce Scope 1 and 2 CO₂ emissions by 2030. Achieving this goal is expected to directly affect the business model, requiring alignment of strategic business decisions with emission reduction targets. Financial Risks and Opportunities That May Lead to Material Adjustments in the Next Reporting Period: Energy Consumption / Production: High energy prices significantly affect Flexopack’s production and transportation costs, impacting profit margins — especially when combined with regulatory measures such as carbon pricing. Energy consumption is a key cost factor in the production process, and any unfavorable changes in prices or the energy mix pose substantial financial risks. The greatest financial risk is found in upstream activities due to their energy-intensive nature, where even small price increases can significantly affect costs. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 114 However, improving operational efficiency and adopting renewable energy sources can help mitigate these risks. As a listed company, Flexopack has a robust risk management system that is reviewed by senior management and the Board of Directors to respond effectively to risks and opportunities. (See the IROs section for further details.) The double materiality assessment conducted in 2025 includes the same material topics as the previous reporting period (2022–2023), with no significant changes. The IROs were completed at Group level in accordance with the ESRS disclosure requirements. As such, no additional disclosures are required for individual entities. ESRS-2-IRO – Management of Impacts, Risks, and Opportunities (IRO) Description of the process for identifying and assessing material impacts, risks, and opportunities (IRO- 1_01-15) The methodology for identifying impacts, risks, and opportunities, as outlined in Flexopack’s ESG Report, included data collection from the company’s previous materiality assessment, the risk register, financial and managerial reports, as well as interviews and questionnaires with stakeholders. At the same time, a literature review and benchmarking were conducted against competitors and international sustainability frameworks and standards, specifically GRI, SASB, MSCI, and S&P. After compiling a long list of potentially material topics, these were cross-checked with the ESRS standards and then distributed to senior executives, department heads, customers, suppliers, and NGOs for the execution of the Double Materiality Assessment. The classification of IROs was based on the results of the questionnaires, stakeholder interviews, the literature review, and internal documentation. The methodology follows the Draft Implementation Guidance for Materiality Assessment by EFRAG (December 2023) and is aligned with the GRI 2021 Universal Standards. The assessment was carried out in the following steps: - Value Chain Analysis and Identification of ESG Issues: Identification of ESG touchpoints across upstream, downstream, and core operations of Flexopack, and creation of an ESG topic framework for further analysis. - Development of potential material topics through comparison with industry peers, international standards (SASB, MSCI, S&P), and Flexopack’s previous materiality assessment. - Cross-referencing identified topics with ESRS and forming a shortlist: Topics identified from various sources were aligned with ESRS and validated by Flexopack representatives. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 115 - Stakeholder consultation and topic ranking: A 34-question questionnaire was sent to internal and external stakeholders, including board members, senior executives, employees from various departments and levels, customers, suppliers, and NGOs. Participants were asked to rank each topic based on actual or potential financial materiality and impact materiality. The final list of topics included in the questionnaire comprised: - Climate change - Pollution - Water - Circular economy - Company employees - Consumers and end-users - Corporate governance Interviews were conducted with senior executives from the following departments to validate assumptions and collect additional information: - Internal Audit - Quality Assurance - Production - Marketing - Human Resources (HR) The IRO assessment was conducted at a Group level, as the company specializes in flexible plastic packaging and operates production units in low-risk areas: Greece, Poland, and Australia. The IRO identification process covered the entire value chain of Flexopack and was consolidated into overall IROs per topic. The evaluation was based on expertise, benchmarking, and research. The double materiality assessment process included consultation with the following stakeholder groups: - Employees - Customers - Suppliers - Non-Governmental Organizations (NGOs) Their input was collected through questionnaires, where each stakeholder ranked the topics based on potential financial materiality, as well as interviews with key departments of Flexopack. The financial materiality assessment of IROs used thresholds based on the significance of expected financial impacts and the likelihood of occurrence. The assessments were informed by expert opinions, literature reviews, and estimates where necessary. For each IRO, the following thresholds were used, with the scales described below: FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 116 Impact of the issue on the company’s financial position: - Less than 1% of sales - 1–5% of sales - 5–8% of sales - High: 8–10% of sales - Over 10% of sales Time horizon of impact (when it will affect the company): - Less than 1 year - Medium-term (1–5 years) - Long-term (more than 5 years) Materiality of impact: - Causes only minor changes - The impact is low but significant - The impact is significant and causes visible changes that require attention, but is manageable - The changes are material and may require immediate action to mitigate - The impact is vital or extremely critical, with serious, dramatic, or irreversible consequences The company’s Internal Control System includes a set of policies, procedures, and mechanisms that incorporate risk management and regulatory compliance. These measures contribute to the company’s secure and efficient operation, enhancing transparency and corporate credibility. They include procedures related to obligations toward the Stock Exchange and Capital Market Commission, Management of Privileged Information and Proper Public Disclosure, Conflict of Interest Policy and Procedure, and Transaction Disclosure. Flexopack has approved policies and procedures that document and explain regulatory requirements and define compliance mechanisms. These include – among others – Corporate Governance. The company operates in a highly competitive international environment due to its continuous and robust export activity and high degree of outward orientation. Corporate operations expose the company to various financial risks. These challenges are addressed through systematic efforts by the company. The Board of Directors is responsible for effectively monitoring the Group’s exposure to business risks, aiming to ensure stability, uninterrupted business continuity, and strengthening corporate development. Department heads at Flexopack complete an annual questionnaire for the company’s risk register and assess actual and potential risks to the business, including some ESG-related risks. ESG risks are included in the company’s risk register and are considered in the overall risk management process. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 117 The following input parameters were used for identifying and evaluating the IROs: Categorization into: • Positive opportunity (financial materiality) • Negative opportunity (financial materiality) • Risk (impact materiality) • Opportunity (impact materiality) Time horizon: • Short-term (<1 year) • Medium-term (1–5 years) • Long-term (>5 years) Scope: • Global • Per legal entity • Per country For risks and opportunities: • Significance • Likelihood of occurrence For impacts: • Potential / actual • Significance • Scope • Likelihood of occurrence • Restorability (only for negative impacts) The company has not changed its overall risk management strategy, but the current process placed greater emphasis on sustainability factors and their impact on the company’s financial position, using both internal and external advisors. The results of the process are reviewed by Management and members of the Board of Directors. IROs were defined per sub-topic, based on the following indicators: • Value chain analysis: whether the impact relates to upstream, downstream, or own operations • Category: Positive/negative impact (impact materiality), negative risk or positive opportunity (financial materiality) For impact materiality, the following were assessed: • Actual or potential impact • Time horizon: <1 year, 1–5 years, >5 years FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 118 • Scope: country, sector, entity, or global level • Significance: minimal to absolute • Restorability: easy to irreversible • Likelihood of occurrence: highly unlikely to almost certain For financial materiality, the following were assessed: • Time horizon • Scope • Significance • Probability of occurrence IROs were evaluated based on stakeholder questionnaires, interviews, internal documents, external research, and expert opinions. MDR-A 68 The Group updates the list of key actions undertaken during the reporting year and those planned for the future, the expected outcomes, and, where applicable, how their implementation contributes to the achievement of policy goals and objectives. MDR-M 75 The Group discloses any measurement indicators it uses to assess performance and effectiveness in relation to a significant impact, risk, or opportunity. MDR-T 80 The Group discloses measurable, outcome-oriented, and time-bound targets for significant sustainability matters it has established to assess progress. Apart from its obligations to comply with climate legislation and the goal of zero workplace accidents, it has not set other time-bound targets regarding the material issues identified in the double materiality assessment report. The following policies are related to the material topics and are published on the company’s website: - Corporate Governance Code - Operating Regulations - Company’s Articles of Association - Policies on Violence and Harassment at Work - Code of Ethics and Conduct - Diversity Policy - Whistleblowing Policy and Procedure FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 119 ESRS-2-GOV – Governance The Role of Administrative, Management, and Supervisory Bodies The Board of Directors is the highest executive body of the Company. Its members are appointed by the General Meeting of shareholders, with the support of the Remuneration and Nominations Committee. The composition and responsibilities of the Board of Directors are determined by the Company’s Articles of Association, the applicable legal and regulatory framework, and are in compliance with the Hellenic Corporate Governance Code. The selection and appointment of the Board members depend on the suitability of the candidates, based on their academic background, professional qualifications, and relevant work experience. We also consider it essential that candidates align with the culture and values of the Company, as well as adapt to FLEXOPACK’s outward-looking philosophy. It is important to emphasize that all members of the Board of Directors (executive, non-executive, and independent non-executive), as well as members of its various committees, are subject to evaluation regarding their individual and collective suitability. Their CVs are available on our website. The Board of Directors consists of 9 members, 4 of whom are non-executive. The following table presents the members of the Board, their roles, and the duration of their term. Name Position Executive Member Tenure Georgios Gkinosatis BoD Chairman Non Executive Member 25.06.2021 - 25.06.2026 Stamatina Gkinosati BoD Vice Chairman Executive Member 25.06.2021 - 25.06.2026 Stamatios Gkinosatis Chief Executive Officer Executive Member 25.06.2021 - 25.06.2026 Asimina Gkinosati Executive Member 25.06.2021 - 25.06.2026 Dimitrios Gkinosatis A’ Deputy Chief Executive Officer Executive Member 25.06.2021 - 25.06.2026 Spyridon Gkinosatis B’ Deputy Chief Executive Officer Executive Member 25.06.2021 - 25.06.2026 Ioannis Tsoukaridis Independent Non Executive Member 25.06.2021 - 25.06.2026 Ioannis Papamichalis Independent Non Executive Member 25.06.2021 - 25.06.2026 Aliki Benroubi Independent Non Executive Member 25.06.2021 - 25.06.2026 FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 120 In 2024, the percentage of women serving on the Company’s Board of Directors amounted to 33%. The ratio is 3 women to 6 men, therefore 1/3. Independent members account for 33% of the Board of Directors. The Board of Directors generally delegates the Company’s management and representation powers (excluding those requiring collective action) to one or more individuals, whether members of the Board or not, defining the extent of such delegation. In any case, the responsibilities of the Board of Directors are subject to Articles 19 and 99–100 of Law 4548/2018, as in force. For the more effective governance of the Company and to further support the work of the Board of Directors—and in accordance with Articles 10–12 of Law 4706/2020—the following committees have been established: • Audit Committee The Audit Committee is formed and operates with the purpose of supporting and assisting the Board of Directors in its duties concerning financial reporting and oversight of the external audit, supervising the effectiveness of the internal control system, risk management, and regulatory compliance, while maintaining ongoing cooperation with the Company's Internal Audit Department. The Audit Committee is responsible for supervising and ensuring the effectiveness of business operations, thereby supporting the Board of Directors in its important mission. • Remuneration and Nominations Committee The purpose of the Remuneration and Nominations Committee is to support the Company’s Board of Directors in the formulation of the remuneration policy and the remuneration report, aiming to attract and retain competent executives. It is also responsible for identifying and recommending candidates suitable for appointment to the Board of Directors, based on the Company’s existing Suitability Policy. All relevant information is published on our website. The Board of Directors is the supreme governing body, responsible for identifying opportunities and risks arising from the Company’s business activities, as well as overseeing their management. Accordingly, the Company’s Board of Directors is responsible for: • The administration, representation, and management of the Company’s assets, making decisions on all general matters concerning the Company within the framework of its corporate purpose, without limitations, except for those matters that, according to the law or the Company’s Articles of Women Men 33% 67% FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 121 Association, fall under the exclusive jurisdiction of the General Meeting. This includes representing the Company in Greece and abroad, before public, municipal and other authorities or international organizations of any kind, or before natural or legal persons, as well as before all courts in Greece of any level and jurisdiction. It also includes making any decisions concerning the advancement of the Company’s interests; defining and overseeing the corporate governance system in accordance with Articles 1 to 24 of Law 4706/2020; monitoring and evaluating the implementation and effectiveness of the governance system at least every three years; and taking appropriate actions to address any shortcomings. • Assigning Internal Audit responsibilities to one or more individuals who are not members of the Board of Directors. • Ensuring the adequate and effective operation of the internal control system, which includes the functions of Internal Audit, Regulatory Compliance, and Risk Management, as defined by the Company’s Internal Rules of Operation. • Managing corporate affairs to advance the Company’s interests and overseeing the execution of decisions made by the Board of Directors and the General Meeting of Shareholders, while keeping other Board members informed about corporate matters. • Defining the Company’s values and strategic direction and continuously monitoring their application, ensuring alignment with the corporate culture. • Embedding the Company’s values and purpose across all policies, procedures, and behaviors, setting appropriate standards of conduct as an example. • Designing and monitoring the implementation of the Company’s strategy and approving and overseeing its business plan. • Determining the level of risk the Company is willing to undertake in pursuit of its objectives, particularly its long-term strategic goals. • Defining and/or limiting the powers of the CEO and Deputy CEO, where applicable. • Establishing a Policy for identifying, avoiding, and managing conflicts of interest between the Company and Board members, or individuals to whom the Board has delegated some of its responsibilities. • Defining appropriate structures, reporting lines, and responsibilities to achieve corporate goals; ensuring smooth succession of Board members and senior executives; evaluating its own performance and that of its committees and members systematically and continuously improving; and taking all necessary actions to ensure the composition and operation of the Board and its committees comply with applicable laws. Ensuring compliance with all obligations deriving from the applicable laws, corporate documents, and policies and procedures governing the Board, as well as fulfilling other duties set forth in the Articles of Association, Internal Regulations, and applicable legislation. The need for targeted expertise is directly linked to the results of the Double Materiality Analysis, discussed further below, which identified the Group’s key environmental, social, and governance challenges. Specifically, the Board members: FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 122 • Possess experience in risk management, regulatory compliance, and business strategy, which are essential for addressing issues such as the circular economy, climate change, and environmental legislation. • Cover areas such as corporate governance, human resources management, and regulatory compliance, which are critical for handling matters like workplace safety, protection of labor rights, and consumer protection. • Specialize in financial management and legal compliance and apply best practices in areas such as business ethics, anti-corruption, and corporate governance. Through this framework, the Group ensures that the competent bodies have the necessary knowledge and expertise to exercise effective oversight and make well-informed decisions regarding sustainability strategy. The Suitability Policy for the Members of the Board of Directors, as approved by the Annual Ordinary General Meeting of Shareholders on 25.06.2021, has been designed in a clear and specific manner and is adequately substantiated. It includes the principles governing the selection, replacement, and/or renewal of the term of office of Board members, as well as the criteria for assessing their suitability. The Policy includes criteria that satisfactorily ensure the diversity of the Board’s composition in accordance with applicable legislation. These criteria are aligned with the Company’s operational structure and with the strongly outward-looking nature of the business plan of both the Company and the Group, taking into account that the Group's activities are directed not only toward the European market but also to international markets, where the Group has achieved significant penetration and established a competitive position. Company Organizational Chart FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 123 Information Provided and Sustainability Topics Addressed by the Company’s Administrative, Management, and Supervisory Bodies There are currently no fully established procedures in place, with the aim of their completion set for 2025. Similarly, there are no incentive schemes related to sustainability matters at present; however, these are planned to be discussed for implementation in 2026. Key Elements of Due Diligence The Group is in the process of designing a due diligence procedure that will cover all Group companies and significant activities. Nonetheless, in each section of the Sustainability Statement, the current approach to managing identified risks and opportunities is presented. Risk Management System The Company implements a risk management system based on four key pillars: • Risk Identification • Risk Assessment • Risk Mitigation • Risk Monitoring and Reporting Risk Identification • Conducted annually before the end of the year. • Key risk factors that may threaten the achievement of business objectives are identified. • The Board of Directors defines the risk appetite and risk tolerance. Risk Assessment • Each risk is initially assessed based on its inherent risk level. • The process includes existing risk mitigation measures (current risk management actions). • Risk Owners are assigned to manage the identified risks. • The residual risk level is evaluated after the implementation of mitigation measures. Risk Mitigation • If the residual risk level exceeds the Company’s acceptable tolerance, additional measures are taken. • Action plans include enhancements to internal control mechanisms. • The Risk Profile and the Action Plan are approved by the Audit Committee and submitted to the Board of Directors. Process Description Preparation of Risk Profile Review Proposals At the beginning of the fourth quarter, the Head of Risk Management sends the current Risk Profile to management for review. Executives confirm the completeness of risk identification or propose additions/deletions. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 124 Risks are re-evaluated based on: • Impact • Likelihood • Trend • Priority The Revised Risk Profile includes key risk indicators and mitigation actions. Submission of Risk Profile Review Proposals Each executive submits their proposals for updating the Risk Profile within the designated timeframe. Proposals are supported by documentation (e.g., procedures, reports, risk incidents). Conduct of Meetings Meetings are scheduled with management to coordinate risk management actions. The goal is to develop an updated Risk Profile and Action Plan. Discussions include: • Risk mapping • Inherent risk assessment • Mitigation measures • Response actions Approval of the Risk Profile and Action Plan The Head of Risk Management, in collaboration with management, finalizes the Action Plan. The final Risk Profile and Action Plan are submitted to the Audit Committee and the Board of Directors for approval. Action Plan Monitoring – Reporting The Risk Management Unit updates the Risk Profile throughout the year. The Unit prepares semi-annual reports to the Audit Committee and the Board of Directors, which include: • Progress on the implementation of the Action Plan • Key Risk Indicators (KRIs) • Risk incidents (e.g., complaints, failures, accidents, audit findings) A table follows, describing the key risks identified and their mitigation strategies. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 125 The findings of this Risk Assessment are considered to be of a moderate level and are therefore under monitoring. No mitigation measures are currently required. ESRS-E – Environmental Information ESRS E1 – Climate Change The Group recognizes the importance of climate change and the challenges arising from it, striving for the gradual integration of climate-related parameters into governance strategy and incentive systems. Although there is currently no specific remuneration system directly linked to the reduction of greenhouse gas (GHG) emissions, the Group is evaluating a framework to ensure that executive performance is tied to sustainability indicators. At present, Flexopack does not have an official transition plan aligned with the climate mitigation objectives of the Paris Agreement. Flexopack does not fall under the exclusion criteria set out in Articles 12.1 and 12.2 of Regulation (EU) 2020/1818, and is therefore not excluded from the EU Paris-aligned Benchmarks (PABs). However, the company acknowledges the importance of structured climate action and has set a strategic goal to develop and adopt a comprehensive transition plan by 01.03.2030. This plan is expected to define clear targets, timelines, and actions aligned with national and international climate objectives, including decarbonization pathways and alignment with the Paris Agreement. Until then, Flexopack continues to monitor regulatory developments and best practices in climate governance, to ensure that its operations remain aligned with evolving environmental expectations. Flexopack’s core activities focus on the production of plastic packaging for food applications, which are inherently based on raw materials derived from fossil fuels. Consequently, the company faces “locked-in” GHG emissions throughout its value chain, originating from the following sources: Code Risk Category Subcategory Inherent Risk Control Mechanism Rating Residual Risk Risk Ranking L1 Operational Inadequate Internal Policies High Moderate Medium 7 L2 Operational Natural Disasters High High Medium 4 L3 Operational Human Resources Medium Moderate Medium 17 L4 Operational IT Systems High High Medium 9 L5 Operational Fixed Assets Medium High Medium 12 S1 Compliance Regulatory Compliance High High Medium 11 S4 Compliance Fraud Medium Moderate Medium 3 ST1 Strategic Business Interruption Risk High High Medium 1 A3 Market Competition Risk High High Medium 2 FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 126 Material Constraints The exclusive use of virgin plastic for food contact products — due to regulatory restrictions on the use of recycled materials — results in upstream emissions, which are primarily classiﬁed under Scope 3, Category 1 – Purchased Goods and Services. Product Life Cycle At the end-of-life stage, packaging oﬅen ends up being incinerated or landﬁlled, particularly due to the lack of recycling infrastructure for food contact materials. These downstream emissions fall under Scope 3, Category 12 – End-of-Life Treatment of Sold Products. Mitigation Approach • Continuous monitoring of regulatory developments to assess possible compliance pathways. • Exploration of low-carbon production technologies and improvements in energy eﬃciency. • Collaboration with suppliers and industry bodies to evaluate sustainable alternative materials. Material Impacts, Risks, and Opportunities and Their Interaction with Strategy and Business Model Flexopack has not yet conducted a formal climate risk assessment to categorize and disclose speciﬁc climate-related risks. However, the company acknowledges that both physical risks (such as extreme weather events and long-term climate changes) and transition risks (including regulatory changes, evolving customer expectations, and market shiﬅs toward low-carbon products) may impact its operations, supply chain, and business environment. Flexopack has initiated internal discussions and preliminary work toward conducting a full resilience analysis aligned with regulatory requirements. This process is expected to be completed by 2025. The company recognizes the need to adapt its strategy and business model in response to climate risks and regulatory developments. Although an oﬃcial resilience analysis has not yet been carried out, Flexopack is actively working towards: • Enhancing energy eﬃciency in its operations to reduce emissions and align with national and European climate targets. • Exploring procurement of renewable energy sources to transition to a lower-carbon energy mix. • Integrating climate-related ﬁnancial and operational risks into future business planning. • Complying with the National Climate Law, including the determination of the 2019 baseline year for emissions by October 31, 2026, as a basis for future decarbonization targets. Description of Processes for Identifying and Assessing Material Climate-Related Impacts, Risks, and Opportunities Flexopack is currently in the process of developing internal procedures to identify and assess climate- related impacts. Although a formal process has not yet been completed, the company has taken preliminary steps to understand how climate change may aﬀect its operations, supply chain, and product development. The approach under development is expected to take into account elements such as regulatory compliance, operational eﬃciency, market expectations, and supply chain vulnerabilities. The process is FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 127 scheduled for completion in 2025, in alignment with ESRS requirements, aiming to support future disclosures. Flexopack has also initiated the identiﬁcation of climate risks across various time horizons. Although this process is still under development, the company has made initial progress in mapping potential climate risks that may be relevant in the short-, medium-, and long-term. This eﬀort is part of the broader framework of resilience analysis and risk assessment, which is also expected to be ﬁnalized in 2025. Flexopack has not yet adopted a formal climate change mitigation and adaptation policy, as it is currently focused on complying with existing environmental regulations and the sustainability requirements of its customers. While sustainability is embedded in the company’s operations, the development of a dedicated climate policy has not yet been a strategic priority. However, as regulatory requirements evolve, the company may reassess the need for a more institutionalized approach in the future. At present, Flexopack has not established a speciﬁc timeline for the adoption of a formal climate mitigation and adaptation policy. The company continues to monitor regulatory developments, industry trends, and stakeholder expectations to determine the appropriate timing and scope for developing such a policy. Any future adoption will be considered within the broader context of strengthening its sustainability strategy. Actions and Resources Related to Climate Change Policies Flexopack has not implemented a formal climate change mitigation and adaptation policy. However, key sustainability initiatives that indirectly support climate eﬀorts include: • Energy Eﬃciency Improvements: Adoption of optimized production processes to reduce energy consumption. • Waste Reduction Initiatives: Strengthening recycling eﬀorts and improving material use eﬃciency. • Regulatory Compliance: Ensuring alignment with EU environmental and sustainability regulatory requirements. • Use of Sustainable Materials: Exploring alternative packaging materials to reduce environmental impact. Although the above initiatives contribute to sustainability objectives, the company currently does not have a dedicated action plan focused exclusively on climate change. The identiﬁed actions are centered on improving operational eﬃciency, reducing resource consumption, and ensuring regulatory compliance. These eﬀorts indirectly support climate change mitigation and adaptation by reducing energy use and material waste. However, these actions are not part of an institutionalized climate strategy but fall within the broader framework of sustainability initiatives. Flexopack has not yet adopted speciﬁc measures for climate change mitigation and adaptation, due to the absence of a dedicated policy framework. At present, the company integrates environmental and sustainability parameters into broader business strategies, with emphasis on energy eﬃciency and compliance with regulatory requirements. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 128 Future actions may be considered based on evolving regulatory requirements and the company's business priorities. For the time being, no speciﬁc timeline has been set for the adoption of targeted climate mitigation and adaptation measures. Flexopack continues to monitor regulatory developments and industry best practices, which will inform future commitments or structured action plans. Flexopack aims to ﬁnalize its GHG emissions base year as 2019 by October 31, 2026, as required by the National Climate Law. Once the base year is established: • Annual reporting will monitor progress toward the 30% emissions reduction target by 2030. • Additional sector-speciﬁc targets may be introduced depending on legislative developments. At this stage, no outcome-oriented targets have been deﬁned beyond regulatory obligations. However, the company is actively working on developing its decarbonization framework. The main reason for not setting additional measurable targets is the pending establishment of the 2019 emissions base year: • Without a veriﬁed base year, it is not feasible to quantify reductions in absolute terms. • Flexopack prioritizes data collection and veriﬁcation to ensure compliance with national legislation. • Additional targets may be set following analysis of emission trends and reduction opportunities. Once the base year is ﬁnalized (by October 31, 2026), the company may redeﬁne its reduction targets, beyond the legally mandated 30% GHG reduction by 2030. Flexopack has not yet established formal targets or policies aligned with ESRS for climate-related impacts. Nevertheless, the company monitors the eﬀectiveness of related actions through ongoing assessment of its carbon footprint and energy consumption. Existing monitoring mechanisms include: • Annual GHG emissions calculations (Scope 1 and Scope 2) based on veriﬁed data. • Assessment of energy-saving measures implemented and their contribution to operational performance. As part of the company's developing climate strategy, additional performance indicators (KPIs) will be introduced from 2025 to strengthen the monitoring of policy eﬀectiveness. Currently, Flexopack’s approach to monitoring GHG emissions includes: • Annual reporting obligations in accordance with the National Climate Law, with compliance submissions due by October 31, 2026. • Energy eﬃciency audits, focusing on the reduction of Scope 1 and Scope 2 emissions through high- performance equipment and the integration of renewable energy sources. • Carbon footprint assessments to identify potential risks associated with carbon pricing mechanisms (such as the EU ETS and CBAM). As the base year emissions are ﬁnalized, performance indicators (KPIs) will be introduced to track progress toward the 2030 target. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 129 Flexopack’s level of ambition aligns with national decarbonization mandates, aiming for a 30% reduction in GHG emissions by 2030, with key performance indicators (KPIs) to be deﬁned in the context of: • Calculations for the 2019 base year of emissions, and • Monitoring of Scope 1 and Scope 2 reductions through energy eﬃciency upgrades and renewable energy sourcing. Energy consumption and energy mix Sectors with high climate impact used to determine energy intensity • Manufacturing industries Flexopack Group Flexopack France Flexopack Polska Flexopack PTY Flexopack SA 56.650,91 2,56 10.207,11 1.697,04 44.744,20 38.144,97 0,21 8.798,49 1.481,92 27.864,35 476,26 2,01 40,08 0 434,17 0,84 78,70 0,40 0 0,97 18.025,35 0,34 1.368,55 215,12 16.441,34 120,78 0 8,58 0 112,19 17.904,57 0,34 1.359,96 215,12 16.329,15 0 0 0 0 0 31,82 13,27 13,41 12,68 36,75 0 0 0 0 0 1.979,00 0 876,32 111,62 604,69 610,41 0 0 0 610,41 0 0 0 0 0 35.555,56 0,21 7.921,14 984,95 2.6649,26 67,33 8,03 86,32 86,20 62,27 2.589,41 0 877,34 496,97 1.215,09 120,78 0 8,58 0 112,19 0,000362 0,00000106 0,000498 0,0000569 0,000376 Fuel consumption from renewable sources (MWh) Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources (MWh) Consumption of self-generated renewable energy not derived from fuels (MWh) Percentage of renewable sources over total energy consumption (%) Fuel consumption from coal and coal products (MWh) Total energy consumption related to the company’s own operations (MWh) Total energy consumption from fossil sources (MWh) Total energy consumption from nuclear sources (MWh) Percentage of energy consumption from nuclear sources over total energy consumption (%) Total energy consumption from renewable sources (MWh) Non-renewable energy production (MWh) Renewable energy production (MWh) Energy intensity from activities in high climate impact sectors (total energy consumption per net revenue) (%) Fuel consumption from crude oil and petroleum products (MWh) Fuel consumption from natural gas (MWh) Fuel consumption from other fossil sources (MWh) Consumption of purchased or acquired electricity, heat, steam, or cooling from fossil sources (MWh) Percentage of fossil sources over total energy consumption (%) FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 130 Disclosure of reconciliation with the financial statements of the net revenue used to calculate greenhouse gas (GHG) emissions intensity The greenhouse gas (GHG) emissions intensity is calculated using the same net revenue as reported in the company’s financial statements. Gross GHG emissions of Scopes 1, 2, and 3, and total GHG emissions location-based Gross GHG emissions of Scopes 1, 2, and 3, and total GHG emissions market-based Comment: Total GHG emissions for Scope 1 and 2, based on location and market. Scope 3 was not calculated. Analysis of GHG emissions location-based – by country, operating segments, economic activity, subsidiary, GHG emission category, or source type (tCO₂e). Analysis of GHG emissions market-based – by country, operating segments, economic activity, subsidiary, GHG emission category, or source type (tCO₂e). Flexopack Group Flexopack France Flexopack Polska Flexopack PTY Flexopack SA 156.593.000 2.413.000 20.481.000 29.846.000 119.085.000 0 0 0 0 0 Net revenue from activities in high climate impact sectors (€) Net revenue from activities outside high climate impact sectors (€) Flexopack Group Flexopack France Flexopack Polska Flexopack PTY Flexopack SA 30.348,78 0,10 7.558,14 728,69 22.061,85 Flexopack Group Flexopack France Flexopack Polska Flexopack PTY Flexopack SA 24.715,99 0,09 7.558,14 890,21 16.267,54 Scope 1 and Scope 2 Scope 1 Scope 2 Flexopack Group 30.348,78 737,41 29.611,37 Flexopack France 0,10 0 0,10 Flexopack Polska 7.558,14 210,81 7.347,33 Flexopack PTY 728,69 118,29 610,40 Flexopack SA 22.061,85 408,32 21.653,53 Scope 1 and Scope 2 Scope 1 Scope 2 Flexopack Group 24.715,99 737,41 23.978,58 Flexopack France 0,09 0 0,09 Flexopack Polska 7.558,14 210,81 7.347,33 Flexopack PTY 890,21 118,29 771,92 Flexopack SA 16.267,54 408,32 15.859,22 FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 131 Percentage of Scope 1 GHG emissions from regulated emissions trading systems For the current reporting period, there have been no signiﬁcant changes in the deﬁnition of Flexopack’s reporting entity or its value chain that could aﬀect the comparability of the reported GHG emissions. The reporting boundary remains aligned with previous methodologies, ensuring consistency in emissions tracking. Any future modiﬁcations to the reporting boundaries or methodologies used will be disclosed transparently to maintain data integrity and comparability. Flexopack’s greenhouse gas (GHG) emission calculations are based on internationally recognized methodologies, primarily using the GHG Protocol and related ISO standards. The emission factors used for calculating Scope 1 and Scope 2 emissions are sourced from publicly available databases such as the IPCC guidelines and national data repositories, including AIB and DAPEEP, ensuring accuracy in Scope 1 and Scope 2 emission reporting. During the reporting period, there were no signiﬁcant events or changes in conditions that materially aﬀected Flexopack’s reported GHG emissions. The company continues to monitor regulatory developments, operational changes, and supply chain shiﬅs that could impact its emissions footprint. Any material changes in the future will be reﬂected in subsequent reporting cycles. Biogenic CO₂ emissions from the combustion or biodegradation of biomass not included in Scope 1 GHG emissions. Upstream of the value chain Own operations Transportation Downstream of the value chain Flexopack Group 0 Flexopack France 0 Flexopack Polska 0 Flexopack PTY 0 Flexopack SA 0 Flexopack Group Flexopack France Flexopack Polska Flexopack PTY Flexopack SA 40,40 0 2,21 0 38,20 Flexopack Group Flexopack France Flexopack Polska Flexopack PTY Flexopack SA 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Disclosure of types of conventional tools, Scope 2 GHG emissions (%) Percentage of market-based Scope 2 GHG emissions associated with purchased electricity, accompanied by conventional instruments (%) Percentage of conventional instruments used for the sale and purchase of energy, accompanied by attributes related to energy production, in relation to Scope 2 GHG emissions (%) Percentage of conventional instruments used for the sale and purchase of energy without attributes, in relation to Scope 2 GHG emissions (%) Percentage of conventional tools, Scope 2 GHG emissions (%) FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 132 Flexopack is not currently engaged in the sale or purchase of energy through contractual instruments associated with speciﬁc energy attributes, such as Power Purchase Agreements (PPAs) or Renewable Energy Certiﬁcates (RECs). The company primarily sources its energy through standard procurement methods from the market. However, as part of its sustainability strategy, Flexopack continues to explore opportunities for integrating renewable energy sourcing mechanisms, aiming to improve its environmental performance and reduce its carbon footprint. Biogenic CO₂ emissions from the combustion or biodegradation of biomass that are not included in Scope 2 GHG emissions. Disclosure of the reason for excluding a Scope 3 GHG emissions category Flexopack has chosen not to disclose Scope 3 GHG emissions, in line with the phased-in disclosure requirements set out by EFRAG. Since the company employs fewer than 750 individuals, it is currently not obliged to report Scope 3 emissions. However, Flexopack acknowledges the signiﬁcance of Scope 3 emissions and is considering future assessments to enhance transparency. At present, GHG Scope 3 emission calculations are not required for Flexopack under the phased implementation rules. As a result, no oﬃcial calculation methods or reporting boundaries have been deﬁned. The company remains committed to evaluating these parameters in the future, with the aim of enhancing climate-related disclosures. In alignment with ESRS requirements, the operational approach has been applied for Scope 1 and Scope 2 emissions. GHG emissions intensity, based on location and market (total GHG emissions per net revenue) GHG emissions intensity is calculated using the same net revenue included in the company’s ﬁnancial statements. Flexopack Group Flexopack France Flexopack Polska Flexopack PTY Flexopack SA 0 0 0 0 0 Flexopack Group Flexopack France Flexopack Polska Flexopack PTY Flexopack SA 0,000194 0,000000043 0,000369 0,0000244 0,000185 0,000158 0,000000039 0,000369 0,0000298 0,000137 GHG emissions intensity, location-based (total GHG emissions per net revenue) Unit of measurement: tCO₂e / Euro GHG emissions intensity, market-based (total GHG emissions per net revenue) Unit of measurement: tCO₂e / Euro FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 133 Net Sales Revenue Pollution Flexopack assesses its pollution-related impacts through internal monitoring and compliance with environmental regulations. The company manages solid waste streams and air emissions in alignment with applicable regulatory guidelines. Regular assessments are carried out to identify sources of pollution, determine potential risks, and implement mitigation strategies where necessary, to ensure environmental compliance and sustainability. Flexopack collaborates with regulatory authorities and environmental compliance bodies to ensure adherence to pollution-related regulations. It follows established industry guidelines and standards for managing solid waste and air emissions. Although no formal public consultations have been conducted speciﬁcally on pollution, relevant stakeholder input was gathered during the company’s Double Materiality Assessment. This included internal discussions and external feedback on a range of environmental issues. Materiality Assessment (Pollution) The materiality assessment indicated that pollution-related impacts primarily occur in the form of solid waste and air emissions, which are managed in accordance with regulatory requirements. Flexopack ensures that its waste streams comply with current environmental standards, and mitigation measures are implemented to minimize environmental impact. The company continuously evaluates pollution-related impacts to strengthen its sustainability eﬀorts and align with evolving regulatory requirements. Pollution Policies Flexopack integrates environmental management practices into its operational framework, ensuring compliance with relevant regulatory requirements. Although the company follows industry best practices and environmental guidelines, it has not adopted a standalone pollution policy, as its approach is embedded in broader sustainability and regulatory compliance measures. Flexopack continuously evaluates its environmental management framework in alignment with evolving regulatory and industry standards. While a distinct pollution policy is not currently in place, the company is in the process of strengthening its environmental commitments. The adoption of a more structured approach to pollution-related policies is expected to be completed in the near future. Actions and Resources Related to Pollution Flexopack implements initiatives aimed at improving resource eﬃciency, minimizing waste, and ensuring compliance with environmental standards. These include eﬀorts to optimize air emissions controls, enhance waste management processes, and adopt best practices aligned with regulatory requirements. Flexopack Group Flexopack France Flexopack Polska Flexopack PTY Flexopack SA 156.593.000 2.413.000 20.481.000 29.846.000 119.085.000 156.593.000 2.413.000 20.481.000 29.846.000 119.085.000 0 0 0 0 0 Net sales revenue Net revenue used for the calculation of GHG emissions intensity Net revenue excluding that used for the calculation of GHG emissions intensity (€) FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 134 Although these initiatives contribute to pollution reduction, the company does not currently have a separate and publicly disclosed policy speciﬁcally for pollution mitigation. Monitoring and Control of Air Emissions Flexopack ensures the continuous monitoring of air emissions to comply with legal thresholds and industry’s best practices. The company tracks pollutant levels and assesses mitigation measures to reduce atmospheric impacts. Optimization of Solid Waste Management Waste management procedures focus on proper sorting, reduction, and responsible disposal of industrial by-products. The company aligns its waste management strategy with circular economy principles wherever feasible. Strengthening Regulatory Compliance Compliance measures are regularly updated to reﬂect changes in environmental legislation. Flexopack incorporates best practices to maintain compliance with both European and national regulations concerning pollution management. Sustainable Use of Resources The company seeks to reduce environmental impact through responsible sourcing, more eﬃcient use of materials, and improving the sustainability of its processes. Currently, no pollution-related targets have been established. It is a signiﬁcant issue that the company intends to include among its areas of focus soon. Eﬀectiveness is monitored through compliance with environmental permits, which include obligations for emissions monitoring and reporting. Regular internal audits and regulatory inspections ensure compliance. Progress is assessed based on adherence to permitted emission levels and inspections conducted by the competent authorities. Any exceedances are addressed through corrective actions. Air, water, and soil pollution Air emissions by pollutant – Unit of measurement: kilograms (kg) Carbon monoxide (CO) Nitrogen oxides (NOx/NO2) Non methane volatile organic compounds (NMVOC) Particulates – PM10 Flexopack Group 429,52 51,92 80,24 240,72 Flexopack France 0 0 0 0 Flexopack Polska 0 0 0 0 Flexopack PTY 0 0 0 0 Flexopack SA 429,52 51,92 80,24 240,72 FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 135 Microplastics produced and used Pollution-related emissions have remained relatively stable over time, with minor ﬂuctuations atiributed to changes in production volumes and eﬃciency improvements. No signiﬁcant increases or deviations have been observed. Flexopack continues to monitor emissions, including particulate matier (PM), nitrogen oxides (NOx), carbon monoxide (CO), and total organic carbon (TOC), to ensure compliance with regulatory limits. Flexopack measures air emissions through direct monitoring at emission sources, where applicable. Particulate matter (PM), nitrogen oxides (NOx), and carbon monoxide (CO) are monitored using in-line sensors integrated into production lines and through periodic sampling in accordance with environmental regulations, as well as laboratory analysis of process samples. Data validation is conducted through third- party laboratory veriﬁcation, where required. Pollution-related data is collected through Continuous Emissions Monitoring Systems (CEMS) for key air pollutants such as PM, NOx, and CO, as well as through periodic environmental sampling. Data is automatically recorded and reported to the relevant regulatory authorities in line with compliance requirements. Flexopack ensures transparency in reporting by integrating the collected data into the company’s environmental management system and sustainability reporting framework. Flexopack does not employ lower-tier methodologies for quantifying emissions. All emissions data is measured through direct monitoring, regulatory reference standards, and recognized estimation methods where direct measurement is not feasible. In cases where estimates are used, industry best practices are followed to ensure accuracy and reliability. Flexopack operates facilities that are subject to environmental permitting under national legislation. The company monitors applicable requirements of both EU and national regulations, including the Industrial Emissions Directive (IED), and reviews the conclusions of the Best Available Techniques (BAT) relevant to the plastic packaging industry. The company is in the process of mapping the applicability of BAT at each facility to ensure alignment with the EU regulatory framework. Based on internal records and monitoring of environmental permits during the reporting period, no signiﬁcant non-compliance incidents were identiﬁed. Flexopack follows a structured internal control process to monitor compliance through environmental audits, inspections, and emissions monitoring. Oﬃcial documentation can be provided upon request by regulatory authorities. Flexopack’s emissions remain within the BAT-AEL (Best Available Techniques – Associated Emission Levels) thresholds for the sector. The company has implemented improvements in processes and pollution control technologies to maintain compliance with the EU’s environmental performance standards. Flexopack Flexopack France Flexopack Polska Flexopack PTY Flexopack SA 0 0 0 0 0 oup Flexopack France Flexopack Polska Flexopack PTY Flexopack SA 0 0 0 0 0 0 0 0 0 0 Percentage of total pollutant emissions to soil occurring in water-stressed areas Percentage of total pollutant emissions to soil occurring in areas with high water stress FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 136 The environmental performance of Flexopack’s facilities aligns with the sector-speciﬁc BAT-AEPLs (Associated Environmental Performance Levels). Investments in energy eﬃciency and emission reduction strategies ensure that pollutants such as nitrogen oxides (NOx), carbon monoxide (CO), total organic carbon (TOC), and particulate matter (PM) remain within regulated limits. No compliance timeframes or derogations under Article 15(4) of the IED Directive have been granted to Flexopack. All operations are conducted in full compliance with the applicable BAT-AEL emission limits, with no exceptions from the permitied emission thresholds. Expected ﬁnancial impact of risks and opportunities related to pollution ESRS E2 – Pollution E2.SPE – Specific Pollution-related Information E2.MDR-M_01 – Description of the measure used to assess performance and effectiveness in relation to a material impact, risk or opportunity Direct emission measurements E2.MDR-M_02 – Disclosure of the methodologies and significant assumptions supporting the measures Direct Emission Measurements Direct emission measurements are carried out using calibrated sensors and monitoring systems installed at key emission points. The methodologies follow industry standards and EU guidelines, ensuring compliance with established limits. Key assumptions include: stable operating conditions, adherence to maintenance schedules, and regulatory stability. E2.MDR-M_03 – Type of external body, other than the insurer, which provides verification (Direct emission measurements) Emission data is verified by accredited third-party laboratories and independent environmental auditors. These bodies conduct periodic checks and verifications to ensure data accuracy and legal compliance. Additionally, government authorities may perform inspections to assess compliance with environmental legislation and permitting conditions. Flexopack Group Flexopack France Flexopack Polska Flexopack PTY Flexopack SA 0 0 0 0 0 0 0 0 0 0 Operating expenditures (OpEx) related to significant incidents and discharges (pollution) (€) Capital expenditures (CapEx) related to significant incidents and discharges (pollution) (€) FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 137 ESRS E5 – Circular Economy The topic of the circular economy was assessed within the scope of Flexopack's Double Materiality Assessment, analyzing impacts, risks, and opportunities related to it, both for its own operations and its value chain. Flexopack has engaged in consultations with key stakeholders, including suppliers, industry associations, and regulatory authorities, regarding circular economy initiatives. The company participates in sectoral discussions on reducing plastic waste and promoting sustainable packaging solutions, aiming to align with EU regulations and customer sustainability requirements. Policies Related to Resource Use and the Circular Economy At present, Flexopack has not yet adopted actions that fully align with the requirements of the ESRS standards. However, the company is actively advancing resource efficiency and waste reduction within its production processes. While no formal circular economy policy has yet been established, operational measures aligned with circular economy principles are being implemented, such as: • Optimizing material usage in packaging design to minimize waste. • Reducing production scrap through improved efficiency in manufacturing processes. • Exploring alternative packaging materials that comply with food safety regulations. • Strengthening partnerships with stakeholders to explore end-of-life solutions for plastic packaging. Internal Source Optimization Flexopack has initiated the implementation of Internal Source Optimization as part of its eﬀorts to improve resource eﬃciency and reduce material waste. Given the strict regulatory constraints regarding the use of recycled materials in food-contact packaging, the company focuses its eﬀorts on improving material utilization, reducing rejection rates, and enhancing overall eﬃciency—while ensuring compliance with food safety standards. The key actions undertaken include: • Optimization of production processes to reduce material losses and enhance operational eﬃciency. • Implementation of quality control measures to minimize defective batches and reduce raw material waste. • Collaboration with suppliers to explore improved material formulations aimed at maximizing eﬃciency and ensuring compliance with food packaging regulations. While these actions do not yet constitute a formal circular economy policy, they contribute to gradual improvements in material usage and waste reduction within the existing regulatory constraints. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 138 E5.MDR-A_09 - Current ﬁnancial resources allocated to the action plan (CapEx) (€) E5.MDR-A_10 - Current financial resources allocated to the action plan (OpEx) (€) E5.MDR-A_11 - Future ﬁnancial resources to be allocated to the action plan (CapEx) (€) Short-term Medium-term Long-term 0 0 0 Use of Resources in Technical and Biobased Materials Flexopack’s approach to eﬃcient resource use focuses on: • Material Optimization: Reducing plastic use through lightweight design without compromising packaging integrity. • Process Eﬃciency: Implementing waste reduction measures during production. • Eﬃcient Water Use: Continuous monitoring and minimization of water consumption in production processes. • Sustainable Alternatives: Evaluating biobased and compostable materials where feasible. Use of Recycled Raw Materials Due to EU regulations on food-contact packaging (Regulations EC 1935/2004 and EC 282/2008), Flexopack cannot incorporate post-consumer recycled (PCR) materials into primary food packaging. However, for non-food applications, the company has successfully incorporated 20–50% recycled content in selected products. Ongoing research focuses on mechanical and chemical recycling technologies, aiming to increase the use of secondary raw materials in compliance with regulations. Optimization of Waste Management Waste management at Flexopack is optimized through: • Energy Eﬃciency: Reducing energy consumption related to waste through improved production processes. • Partnerships with Recycling Units: Ensuring proper recycling of non-food packaging materials. • Continuous Monitoring and Reduction Programs: Recording waste ﬂows and implementing improvement measures. Flexopack participates in industry associations and works with regulatory authorities to stay aligned with developments in the circular economy and compliance requirements. It follows the evolution of the EU Flexopack Group Flexopack France Flexopack Polska Flexopack PTY Flexopack SA 0 0 0 0 0 FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 139 Packaging and Packaging Waste Directive and takes part in industry discussions on recyclability, waste reduction, and material eﬃciency. Due to legislative restrictions, the company does not use recycled materials in food packaging but focuses on lightweight construction and optimized raw material usage. Flexopack’s Circular Economy Approach Includes: • Material Eﬃciency: Reducing excessive use of raw materials through improved production techniques. • Recyclability: Ensuring that packaging materials are compatible with existing recycling infrastructure. • Regulatory Compliance: Adhering to industry standards for sustainable packaging. • Customer Collaboration: Providing guidance on proper disposal and recyclability of packaging. Flexopack’s Circular Economy Initiatives Involve: • Suppliers: Close cooperation with raw material suppliers to comply with sustainability and performance standards. • Customers: Oﬀering advice on best disposal practices to support proper waste management. • Industry Associations: Engaging in sectoral initiatives to monitor EU sustainability policies. • Regulatory Authorities: Ensuring that packaging solutions meet environmental and health requirements. Flexopack’s circular economy initiatives are embedded within the production and regulatory compliance departments, under the supervision of senior management. Key Focus Areas: • Monitoring material eﬃciency to optimize resources and reduce waste. • Assessing regulatory developments to ensure that packaging sustainability aligns with compliance standards. • Collaborating with suppliers to explore innovative materials, in line with legal restrictions on food-contact packaging. Flexopack operates within a strict regulatory framework for food packaging, which limits the adoption of certain circular economy practices, such as the use of recycled materials. Furthermore, the company’s current sustainability strategy focuses on resource eﬃciency, packaging weight reduction, and compliance with industry standards, rather than on the implementation of independent circular economy initiatives. Flexopack aims for continuous evaluation of regulatory requirements and technological developments that could enable enhanced circularity in its packaging solutions. Although there is no deﬁned timeline for a broad transition to a circular economy, the company actively monitors industry developments and may reconsider its approach within the next 3–5 years, depending on regulatory changes and the feasibility of new technologies. Flexopack has not yet established a speciﬁc timeframe for seting measurable, outcome-oriented targets related to resource eﬃciency and the circular economy. The company is currently evaluating industry standards, regulatory requirements, and internal sustainability assessments to identify appropriate FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 140 performance indicators. The establishment of speciﬁc targets depends on ongoing feasibility analysis and alignment with the company’s broader sustainability strategy. At present, Flexopack has not set concrete measurable goals due to the complexity of deﬁning standard indicators that are applicable to its operations, especially in relation to the circular economy. The company operates in a sector where regulatory frameworks and technological developments are continuously evolving, making it diﬃcult to deﬁne long-term quantitative targets without fully veriﬁed data. Instead, Flexopack focuses on ongoing improvements in resource eﬃciency, waste reduction, and the use of sustainable materials through operational optimization and innovative strategies, rather than on strict outcome-based commitments. Flexopack monitors the eﬀectiveness of its sustainability policies and actions through internal performance tracking and regular data collection related to resource eﬃciency and waste management. The Board of Directors periodically reviews these indicators to assess progress and identify areas for improvement. Additionally, feedback from key stakeholders such as customers and suppliers is considered to enhance sustainability initiatives and align them with industry expectations. Flexopack aims to enhance its performance in the circular economy by improving resource eﬃciency, reducing waste, and increasing the sustainability of its production processes. Although the company has not yet established strict ecological boundaries, its sustainability eﬀorts are guided by key qualitative and quantitative indicators, such as: • Monitoring the percentage of recyclable materials used in production. • Tracking reductions in waste generation. • Evaluating energy consumption per unit of production. Flexopack is also working to align itself with industry’s best practices and regulatory requirements that promote sustainable packaging solutions. Progress is periodically assessed through internal reporting mechanisms and external sustainability evaluations conducted by third-party bodies. Inﬂow Resources Flexopack primarily sources virgin raw materials for its production due to regulatory restrictions on the use of recycled content in food-contact packaging. The company monitors its raw material usage in order to optimize eﬃciency and minimize waste. The main material inputs include plastic resins (such as polyethylene and polypropylene), which are essential for ensuring product safety and compliance with food packaging standards. Materials considered in the resource input calculations are those directly related to the production process, namely plastic raw materials, solvents, and colorants. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 141 Total weight of products and technical and biological materials used during the reporting period – unit of measurement: tonnes Flexopack evaluates material inputs based on procurement data, supplier information, and internal monitoring systems. Key assumptions include: • The use of raw materials is calculated based on production volume and purchasing data. • Waste reduction and material eﬃciency initiatives are factored in, adjusting projected inputs according to anticipated improvements in production performance. Example: If a production line implements a change that improves eﬃciency by 2%, the estimated input of raw materials is reduced accordingly. These assumptions are periodically validated based on actual production waste data. • Compliance with food safety regulations limits the incorporation of post-consumer recycled (PCR) materials, aﬀecting the composition of material inputs. Due to legislative constraints, Flexopack currently does not use post-consumer recycled materials in food packaging. However, the company explores closed-loop recycling initiatives where feasible and continuously evaluates industry innovations that align with regulatory requirements. Internally, scrap materials from production are reprocessed and reused, reducing the overall waste of raw materials. Additionally, partnerships with suppliers explore the use of secondary raw materials where legally permitted. Flexopack ensures data accuracy in material input reporting through veriﬁcation processes and reconciliation methods to prevent double counting. The following approaches are applied: • Supplier-level veriﬁcation: Input data are cross-checked with supplier invoices and procurement records to ensure that materials are not recorded multiple times. • Internal monitoring systems: Material management systems track resource ﬂows and prevent duplicate entries. • Separation of internal recycling: Internally reprocessed materials are recorded separately from virgin inputs to avoid overstating resource consumption. • Regulatory alignment: Reporting structures are aligned with industry standards and regulatory requirements, ensuring consistency in material accounting and circular economy indicators. Flexopack Group Flexopack France Flexopack Polska Flexopack PTY Flexopack SA 31.348 0 12.137 0 19.211 0,371 0 0,00315 0 0,599 0 0 0 0 0 0 0 0 0 0 Total weight of products and technical and biological materials used during the reporting period – unit of measurement: tonnes Percentage of biological materials (and biofuels used for non-energy purposes) The weight of reusable or recycled components, secondary products, and materials used in the manufacturing of products and services – (tonnes) Percentage of secondary reusable or recycled components, secondary intermediate products, and secondary materials FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 142 Outbound Resources Flexopack’s key outbound materials include ﬂexible plastic packaging solutions designed for food preservation, industrial applications, and specialized barrier ﬁlms. These products contribute to extended shelf life, reduced food waste, and supply chain eﬃciency. Materials used include polyethylene (PE), polypropylene (PP), and multi-layer ﬁlms of specialized speciﬁcations, ensuring product safety and durability. The company also produces recyclable ﬁlms, supporting circular economy principles. Flexopack has not received any reports in 2024 of product defects or durability issues. Based on this, the company’s products meet or exceed the industry average in durability across product categories. As no related concerns have arisen, it is inferred that product performance is on par with or superior to typical industry standards. Flexopack’s products—primarily single-use food packaging materials—are not designed for repair. However, the company focuses on reducing material use and improving recyclability to support circularity. Flexopack uses an electronic waste management tracking system, which records the type, volume, and destination of each waste stream. Waste volumes are calculated based on actual weight measurements conducted at each facility, ensuring data accuracy for regulatory compliance and sustainability reporting. Percentage of recyclable content in products (%) At Group level the percentage of recyclable content in products is 50,87%. Comment: The recyclable content of the packaging was not assessed, only that of the products. Flexopack is currently in the data collection phase regarding the characteristics of product packaging, in order to incorporate this information into future disclosures. Total waste generated (tonnes) Flexopack Group Flexopack France Flexopack Polska Flexopack PTY Flexopack SA 6.672,64 0 440,60 306,14 5.925,90 FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 143 Waste diverted from disposal, analyzed by hazardous and non-hazardous waste and treatment type (tonnes) Non-Hazardous waste Through preparation for reuse 35,46 1.904,08 Through recycling 0 1.310,28 Through other recovery actions 4,00 2.760,42 Through preparation for reuse 0 0 Through recycling 0 0 Through other recovery actions 0 0 Through preparation for reuse 0 0 Through recycling 0 440,6 Through other recovery actions 0 0 Through preparation for reuse 0 0 Through recycling 0 137,77 Through other recovery actions 0 0 Through preparation for reuse 35,46 1.904,08 Through recycling 0 731,92 Through other recovery actions 4,00 2.760,42 Hazardous waste Flexopack Group Flexopack France Flexopack Polska Flexopack PTY Flexopack SA FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 144 Waste directed to disposal, analyzed by hazardous and non-hazardous waste and treatment type Comments: In 2024, all waste streams reported by Flexopack were classiﬁed, in the Waste Report, as recovery operations (R12, R13, R3), and no direct disposal (e.g., in landﬁlls – D1-D5) was recorded. Therefore, due to limited transparency beyond the point of transfer to licensed waste operators, Flexopack adopts the assumption that in Australia, 55% of waste ends up in landﬁlls, based on the average recycling rate for industrial waste in Australia during the 2023–2024 period (Recycling and Waste in Queensland Report 2024, Queensland Government). In Greece, the corresponding rate is assumed to be 8.3%, based on relevant reports from the Greek industrial sector (Sarantis Group 2024 Sustainability & Annual Financial Report). The company does not generate radioactive waste. Flexopack’s waste streams include: • Plastic waste • Paper and cardboard waste Non-Hazardous waste Through incineration 0 0 Through landfill 83,84 574,56 Through other actions 0 0 Through incineration 0 0 Through landfill 0 0 Through other actions 0 0 Through incineration 0 0 Through landfill 0 0 Through other actions 0 0 Through incineration 0 0 Through landfill 0 168,38 Through other actions 0 0 Through incineration 0 0 Through landfill 83,84 406,18 Through other actions 0 0 Flexopack SA Hazardous waste Flexopack Group Flexopack France Flexopack Polska Flexopack PTY Flexopack Group Flexopack France Flexopack Polska Flexopack PTY Flexopack SA 658,41 0 0 168,38 490,03 123,3 0 0 0 123,3 Waste for disposal (tonnes) Total amount of hazardous waste (tonnes) FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 145 • Liquid waste from production and maintenance • Metal packaging waste • Municipal mixed waste • Batieries The main waste streams related to Flexopack’s operations include: • Plastic production waste – Managed through internal recycling or external recycling partners. • Paper and cardboard waste – Collected for recycling. • Metal packaging waste – Sent to licensed metal recyclers. • Municipal waste – Managed through appropriate disposal channels. The primary materials contained in Flexopack's waste include: • Polyethylene (PE) and polypropylene (PP) from ﬁlm production • Wooden pallets and crates used for transporting materials • Paper and cardboard from packaging materials • Metal waste from machinery maintenance and packaging materials • Solvents from the production process Flexopack uses a combination of direct measurement and operational practices to monitor and calculate waste generation at its facilities. The methodologies used include: • Direct measurement: Waste quantities are recorded by weight at production sites using calibrated equipment and local records. • Internal audits: Annual waste audits are conducted to verify reported data, assess material ﬂows, and ensure consistency with operational data. This approach enables reliable tracking of waste ﬂows and supports compliance with internal reporting protocols and regulatory requirements. Flexopack acknowledges the importance of improving end-of-life management for plastic packaging in the context of the circular economy and EU waste legislation. Although no formal end-of-life management programs are currently in place, the company is exploring potential approaches, such as: • Monitoring developments in recyclable material design relevant to its product portiolio • Following industry discussions on product compatibility with recycling infrastructure and related plastic waste legislation • Evaluating future collaboration opportunities with recyclers or recovery facilities, where feasible and permitied under food safety and regulatory frameworks The company aims to gradually strengthen its capabilities in this area to align with emerging regulatory and market requirements. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 146 EU Taxonomy Report 2024 Disclosures under art.8 of EU Taxonomy Regulation The EU Taxonomy Regulation (EU) 2020/852 establishes the criteria based on which an economic activity can significantly contribute to the 6 environmental objectives of the European Union in order to determine the extent to which such activities can become environmentally sustainable or contribute in the transition to a sustainable economy as a whole. The purpose of the Taxonomy is to channel private funds to activities that will help the Union achieve its goals and commitments through the identification of sustainable investment opportunities by investors. Environmental objectives The environmental objectives of the European Union, as have been stated through the EU Taxonomy Regulation (art.9, R.2020/852/ΕU) are the following: (a) climate change mitigation; (b) climate change adaptation; (c) the sustainable use and protection of water and marine resources; (d) the transition to a circular economy; (e) pollution prevention and control; (f) the protection and restoration of biodiversity and ecosystems. The delegated acts adopted under the Taxonomy Regulation provide technical screening criteria which must also be met to constitute taxonomy alignment. At the moment of publication of the present, report the Taxonomy-eligible activities have been set out by 2 Delegated Acts currently in force. In 2021, the EU adopted the first Delegated Act 2021/2139 (EU) which set out activities and technical screening criteria for substantial contribution towards objectives (a)-(b) above, including DNSH criteria for other objectives. Moreover, in 2023, the second Delegated Act 2023/2486 (EU) was published and adopted regarding activities significantly contributing to environmental objectives (c)-(f) above. Technical screening criteria In order to determine the degree to which an activity is aligned with the respective criteria the following elements have to be examined: (a) it contributes substantially to one or more of the above-mentioned environmental objectives (b) it does not significantly harm any of the environmental objectives (c) it is carried out in compliance with the minimum safeguards laid down in Art.18 of the Taxonomy Regulation and (d) it complies with technical screening criteria that have been established through the respective Delegated Acts. The Taxonomy framework provisions that are effective on the date of the present report, require from companies to disclose the amount and proportion of their economic activities which are eligible, non- eligible and aligned with all of the above-mentioned climate objectives as part of their total turnover, capital and operational expenditure and to perform related alignment assessments for all such activities. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 147 The Group applied Regulation (EU) 2020/852 as supplemented with Commission Delegated Regulation (EU) 2021/2139, Commission Delegated Regulation (EU) 2021/2178, Commission Delegated Regulation (EU) 2023/2485 and Commission Delegated Regulation (EU) 2023/2486 to identify activities that are eligible. EU Taxonomy-eligible activities of FLEXOPACK Group Flexopack Group has reviewed extensively the activities currently included within the EU Taxonomy framework as described in Delegated Regulations 2021/2139 (EU) and 2023/2486 (EU) and concluded that the only activity that corresponds to its activities falls under environmental objective (d) "Transition to a Circular Economy". Specifically, the Group's products were deemed to be included in the activity "CE 1.1 Manufacture of plastic packaging goods", as this activity is included in Delegated Regulation 2023/2486 (EU) approved in 2023. Following the identification of eligible business activities, Flexopack Group assessed the alignment based on the required technical criteria. However, for the current financial year, it was not possible to confirm the alignment with Do-No-Significant-Harm (DNSH) criteria, as the relevant activity was not accompanied by the required assessment of impact of natural climate risks. The following presents the main environmental characteristics/criteria of the Group's products in relation to the circular economy. Recycled raw materials criterion The products produced by Flexopack can be categorized according to their use in two categories: - Food-contact applications (FCA) – packaging materials that come into direct contact with sensitive products (food) - Non food-contact applications (non FCA) - packaging materials that do not come into direct contact with sensitive products For FCAs, there are European regulations (EC 1935/2004, EC 282/2008) which prohibit the use of recycled plastic in their production to avoid possible risks of transferring harmful substances, by-products of the recycling process, to consumers. The vast majority of products produced by Flexopack concern packaging materials that come into direct contact with sensitive products (food) Food-contact applications (FCA). Following the above regulations, it is obvious that Flexopack cannot introduce any percentage of recycled product into the production of FCAs. Regarding the non-FCA category, a quota of 20% to 50% of recycled raw material in the structure has already been introduced, while in the coming years the quota of recycled raw material is expected to exceed 50% in these applications. Product recyclability criterion Our products are mainly composed by PE, PP, PA, EVOH which are recognized as recyclable in principle by various organizations and institutes worldwide. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 148 The majority of our products meet the recycling specifications as defined by international organizations and independent testing laboratories, e.g. Cyclos, OPRL, APCO, Fostplus, Valipac, Recyclass. Many of our products are designed for recycling and/or mono-materials, in order to be compatible with the highest recyclability requirements. It should be noted that each of the components that make up the finished packaging materials produced by Flexopack performs a specific role in terms of protecting the food content. We believe that protecting food and maximizing shelf life (especially in today's era where global supply chains face a multitude of challenges that lead to delays) is a key sustainability goal. Declaration of activities related to nuclear energy and fossil gaseous fuels Nuclear energy related activities 1. The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle. NO 2. The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as their safety upgrades, using best available technologies. NO 3. The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety upgrades. NO Fossil gas related activities 4. The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels. NO 5. The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels. NO 6. The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels. NO Flexopack Group is not involved in any of the activities referenced in the table above and thus does not report on any of the KPI table templates 2-5 of Annex XII of Regulation 2021/2178 (EU). FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 149 Qualitative information Accounting Policy The consolidated and separate financial statements of FLEXOPACK PLASTICS SA of December 31st 2024 covering the period from January 1st up to December 31st 2024 have been prepared in accordance with the International Financial Reporting Standards (IFRS), as those have been adopted by the European Union. The accounting principles applied for the preparation of the EU Taxonomy KPIs are described in Note 2 «Basis for the preparation of the financial statements» as well as in Note 3 «Basic accounting principles» of the «Annual Financial Report» of December 31st 2024. Proportion of the total turnover. The proportion of eligible economic activities in the total turnover was calculated on the basis of the net turnover from the sale of goods corresponding to activities included in the Taxonomy framework (numerator), divided by the total net turnover (denominator), both referring to the financial year 2024. Specifically, the total Group turnover is presented in line «Turnover» of the «Statement of Income» as well as in Note 6.19 of the consolidated «Annual Financial Report of year 2024». Proportion of the total CapEx. It was calculated based on capitalized expenditures incurred for asset additions or processes associated with eligible economic activities and includes the Taxonomy's eligible capital expenditures (numerator) divided by total capital expenditure (denominator). Total capital expenditure includes additions to tangible fixed assets as well as intangible assets and right-of-use assets during the period of use, before depreciation and any impairment. The total capitalized expense is calculated based on the Statement of Financial Position and is the sum of the following elements included in the consolidated «Annual Report of year 2024»: line «Additions» in «Tangible fixed assets» (Note 6.1), line «Additions» in «Intangible assets» (Note 6.3), as well as line «Additions» in «Right of Use Assets» (Note 6.14). Proportion of the total OpEx. It was calculated on the basis of operating costs related to research and development, repair and maintenance of assets or processes corresponding to eligible economic activities and includes the Taxonomy-eligible operating costs (numerator) divided by the total operating costs for repair and maintenance as well as operating costs related to research and development. The EU Taxonomy's definition of operating expenditure includes expenditure on research and development, building renovation, maintenance and repair, as well as any other direct expenditure related to the day- to-day servicing of tangible assets. The information presented in this report complies with the requirements of the Taxonomy Regulation and the relevant Delegated Regulations issued up to the time of this publication. The relevant guidelines have a relative margin of interpretation and are constantly adapted to the needs of the process. Taking this into account, the Group pays particular attention to relevant developments and adjusts its approach depending on the assumptions and applicable methodology. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 150 Turnover KPI CapEx KPI OpEx KPI FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 151 ESRS-2-S – Social Information ESRS S1 – Own Workforce The Group respects the rights of its people and strictly complies with applicable labor legislation and the relevant provisions concerning child labor, human rights, and employees' right to participate in trade unions. The Group operates with respect for individual diversity and, in particular, does not discriminate during recruitment, remuneration, promotions, termination of employment, or retirement on the basis of gender, disability, religion, race, color, social class, nationality, political beliefs, age, family background, sexual orientation, or any other characteristic. The relevant policy is published on our website and is detailed in the Corporate Governance section. Flexopack Group holds the responsibility of ensuring the smooth functioning of the work environment, with the aim of providing all its members with opportunities to grow and contribute, to the fullest extent possible, toward achieving the Group’s goals. Emphasis is placed on promoting the principles of meritocracy in recruitment and employee management. The Group explicitly prohibits any acts of verbal or physical violence and harassment of any kind, including sexual, psychological, moral (mobbing), or bullying in the workplace. As of 31 December 2024, the total number of employees in the Flexopack Group was 545, and there is no employee representative body. TOTAL EMPLOYEES 31/12/2024 Indefinite employment contract Fixed-term contract FLEXOPACK SA 385 385 0 MEN 308 308 0 WOMEN 77 77 0 FLEXOPACK POLSKA 93 93 0 MEN 64 64 0 WOMEN 29 29 0 FLEXOPACK PTY 64 64 0 MEN 38 38 0 WOMEN 26 26 0 FLEXOPACK FRANCE 3 3 0 MEN 2 2 0 WOMEN 1 1 0 GROUP TOTAL 545 545 0 FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 152 Description of commitments to human rights policies concerning own workforce Code of Ethics and Ethical Conduct (hereinafter “the Code”) sets out the commitments of the Group and its employees regarding the principles and rules that should govern every aspect of its operations and the relationships between the Company, its employees, and all stakeholders. The Code of Ethics applies to all employees, without exception. Information on all referenced codes and described policies, is publicly available through the Group’s website and intranet. To address incidents of misconduct or unfair treatment, we apply a Whistleblower Policy. This policy applies to individuals employed by the Group who, in the course of their employment, have acquired information regarding violations, and in particular the following categories: (a) All members of the Board of Directors and its Committees, as well as individuals holding managerial and/or administrative roles in other Group Companies, as well as the shareholders of the Group. (b) Group personnel in general, regardless of the type of contractual relationship (including individuals whose employment has ended for any reason, as well as individuals whose employment has not yet begun, provided the relevant information was acquired during the recruitment process or at another stage of pre- contractual negotiations), as well as any volunteers and interns, whether paid or unpaid. (c) Suppliers in general and people providing services to the Group and other Group Companies, as well as those working under the supervision and direction of suppliers and/or consultants. Reports may be submitted under the condition of honest and reasonable belief that a violation has occurred or is about to occur. A violation is defined as an act or omission that is punishable under European Union law or is contrary to the purpose of its rules, and falls within the scope of Directive (EU) 2019/1937 of the European Parliament and of the Council of 23 October 2019 (L 305), and Law 4990/2022 on the protection of persons who report breaches of Union law, as well as other serious violations or issues as listed below. Individuals falling under the scope of this Policy (according to paragraph 2.2) are encouraged to report criminal acts, suspected incidents of illegal behavior, or violations of EU law related to the Group and/or its other companies. Reports may concern the following violations: (a) Acts indicating gross negligence, suspected fraud, or corruption. (b) Breaches of network and IT system security. (c) Serious irregularities or material breaches involving the provision of services by the Group. (d) Offering or accepting bribes. (e) Theft, embezzlement, misuse, money laundering, forgery, breach of confidentiality and data protection, violations of competition law, accounting and audit-related offenses. (f) Bullying, discrimination, threats, extortion, use of violence, verbal abuse, defamation, sexual harassment. (g) Misuse of the Group’s assets and resources. (h) Violations of EU law in general, including public procurement, product safety and compliance, transport safety, environmental protection, radiation protection, public health, and consumer protection. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 153 (i) Violations related to the internal market (e.g. competition and state aid rules, corporate taxation regulations, etc.). The Group encourages named reports but also accepts anonymous reports. However, it should be noted that anonymous reports make it difficult or even impossible to conduct a thorough investigation due to the inability to obtain further information from the anonymous whistleblower and to assess the reliability of the report. Anonymous complaints are reviewed by the Group based on the seriousness of the matter and the possibility of confirming the report through independent and reliable sources. The evaluation of anonymous reports depends on the degree of substantiation and the possibility of sufficiently identifying the described unlawful act. Any reference to sensitive personal data (e.g., data concerning racial or ethnic origin, political opinions, religious or philosophical beliefs, trade union membership, genetic and biometric data, health, sexual life, or sexual orientation) must be avoided unless directly related to the subject of the report. Otherwise, such data will be deleted. The Group is committed to maintaining the anonymity of the whistleblower and rejects any action that could lead to the disclosure of their identity. For the Violence & Harassment Prevention Policy in the Workplace, the Group conducts risk assessments for the health and safety of employees pursuant to paragraph 1(a) of Article 43 of Law 3850/2010 (Code of Laws on Occupational Health and Safety). It considers psychosocial risks in managing occupational health and safety and identifies—and systematically re-evaluates—these risks. In assessing such risks, the following factors are considered: • The conditions and organization of work (especially night shifts) and the management of human resources within the Group (e.g., fair job distribution regardless of gender, age, or other characteristics), • The level of interaction between employees and third parties, such as clients, suppliers, service providers, etc., • The absence of discrimination, abuse of power, or gender-based cultural and social norms within the work environment, • The fact that many women are employed in key administrative roles and at high levels of the hierarchy, • The existing occupational safety and health programs address the real needs of employees in the workplace, • The organizational structure and physical layout of the workspaces (e.g., there are no "dark" or isolated areas; all spaces are adequately and continuously monitored for safety via surveillance systems, etc.), and facilities such as parking lots and warehouses are secure and deter such risks, • Interpersonal relationships among employees, etc. Any employee who wishes to report an incident of violence or harassment may do so, in writing or verbally, to the Human Resources Director, who is responsible for receiving and investigating reports and updating the complainants (under the supervision of the CEO): FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 154 • Via email: [email protected], • Via the complaint box located in the Group’s production area, • A personal meeting may also be requested with the HR Director, the occupational physician, or the direct supervisor, who are obliged to forward the report to HR. At any stage of the process, individuals involved may also submit complaints to competent administrative authorities in accordance with their jurisdiction. All of the above procedures and policies are published on the Group's website and intranet. Regarding employee communication, in addition to the procedures and communication methods mentioned above, there is a suggestion/complaint box where everyone may anonymously or personally express opinions, comments, or suggestions for improving their work life. Through the evaluation process, employees may also provide direction for setting Group goals regarding the relationship with the workforce. The assessments for 2024 are as follows: Key Material Impacts, Risks, and Opportunities Related to the Group's Human Capital Secure Employment and Provision of a Positive Work Environment (Actual Positive Impact): The Group, by implementing robust human resource management practices, offering competitive compensation and benefits, as well as development incentives, creates a meritocratic and privileged working environment. This is evidenced by the long-term retention of employees. The Group implements the following policies and practices related to its human capital: − Code of Conduct TOTAL NUMBER OF EMPLOYEES EMPLOYEES ASSESSED MEN 412 100% WOMEN 133 100% MEN 308 100% WOMEN 77 100% MEN 64 100% WOMEN 29 100% MEN 38 100% WOMEN 26 100% MEN 2 100% WOMEN 1 100% FLEXOPACK FRANCE EMPLOYEE ASSESSMENTS FLEXOPACK GROUP FLEXOPACK GREECE FLEXOPACK POLAND FLEXOPACK AUSTRALIA FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 155 − Diversity and Inclusion Policy − Policies against violence and harassment in the workplace Employee Health and Safety (Actual Risk): As a company operating production facilities, the health and safety of employees is a top priority and a core concern. Accidents can lead to serious injuries, lawsuits, and reputational damage. To prevent such risks, the Group invests significant resources in training and inspections to ensure compliance with all necessary health and safety practices. The Group maintains a robust health and safety policy and implements the following actions: − We ensure continuous monitoring and qualitative upgrading of our equipment, aiming to improve conditions for safe job execution and reduce the risk of serious accidents. We focus on the effective protection of everyone in our environment—employees, contractors, partners, and visitors—as well as of our facilities, from potential hazards. Our commitment to continuous equipment improvement and safety is a central component of our strategy to ensure a high level of safety in the workplace. − We place emphasis on continuous training and awareness of our personnel on health and safety issues, aiming to prevent accidents and occupational illnesses. The active participation of employees and management in analyzing and implementing effective safety solutions is crucial. We identify and assess risks, apply strict safety regulations, and maintain an up-to-date register of occupational risks. At the same time, we foster open communication between employees and management on health and safety matters, enhancing collaboration with the Occupational Doctor. − The Safety Technician is responsible for the systematic monitoring and inspection of incidents affecting workplace health and safety, conducting audits in accordance with current legislation, as well as necessary investigations and alerts. In addition, we enable employees to report potential risks or safety issues either directly to their supervisors or to the Safety Technician during inspections. Furthermore, we conduct systematic risk assessments related to equipment, the results of which are incorporated into the occupational risk assessment study to ensure absolute safety in the work environment. The Group designates the Heads of Departments as senior management. Count Percentage Men 6 86% Women 1 14% Total 7 100% Senior Management FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 156 In 2024, the following data were recorded at Group and Subsidiary level: AGE GROUP GENDER NEW RECRUITMENTS IN 2024 TOTAL NUMBER OF EMPLOYEES PERCENTAGE <30 Men 38 69 55% Women 8 14 57% Total 46 83 55% 30-50 Men 39 215 18% Women 35 76 46% Total 74 291 25% >50 Men 18 128 14% Women 5 43 12% Total 23 171 13% GRAND TOTAL 143 545 26% <30 Men 16 29 55% Women 3 6 50% Total 19 35 54% 30-50 Men 34 172 20% Women 20 44 45% Total 54 216 25% >50 Men 11 107 10% Women 2 27 7% Total 13 134 10% GRAND TOTAL 86 385 22% <30 Men 14 29 48% Women 1 1 100% Total 15 30 50% 30-50 Men 2 25 8% Women 5 17 29% Total 7 42 17% >50 Men 2 10 20% Women 1 11 9% Total 3 21 14% GRAND TOTAL 25 93 27% <30 Men 8 11 73% Women 4 7 57% Total 12 18 67% 30-50 Men 3 17 18% Women 10 14 71% Total 13 31 42% >50 Men 5 10 50% Women 2 5 40% Total 7 15 47% GRAND TOTAL 32 64 50% <30 Men 0 0 0% Women 0 0 0% Total 0 0 0% 30-50 Men 0 1 0% Women 0 1 0% Total 0 2 0% >50 Men 0 1 0% Women 0 0 0% Total 0 1 0% GRAND TOTAL 0 3 0% RECRUITMENTS FLEXOPACK GROUP FLEXOPACK GREECE FLEXOPACK POLAND FLEXOPACK AUSTRALIA FLEXOPACK FRANCE FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 157 Total Employee Exits (voluntary resignation, contract termination, retirement, death): AGE GROUP GENDER RESIGNATIONS IN 2024 TOTAL NUMBER OF EMPLOYEES PERCENTAGE <30 Men 28 69 41% Women 6 14 43% Total 34 83 41% 30-50 Men 35 215 16% Women 22 76 29% Total 57 291 20% >50 Men 13 128 10% Women 5 43 12% Total 18 171 11% GRAND TOTAL 109 545 20% <30 Men 12 29 41% Women 2 6 33% Total 14 35 40% 30-50 Men 29 172 17% Women 12 44 27% Total 41 216 19% >50 Men 7 107 7% Women 3 27 11% Total 10 134 7% GRAND TOTAL 65 385 17% <30 Men 8 29 28% Women 0 1 0% Total 8 30 27% 30-50 Men 3 25 12% Women 0 17 0% Total 4 42 7% >50 Men 1 10 10% Women 0 11 0% Total 1 21 5% GRAND TOTAL 12 93 13% <30 Men 8 11 73% Women 4 7 57% Total 12 18 67% 30-50 Men 3 17 18% Women 10 14 71% Total 13 31 42% >50 Men 5 10 50% Women 2 5 40% Total 7 15 47% GRAND TOTAL 32 64 50% <30 Men 0 0 0% Women 0 0 0% Total 0 0 0% 30-50 Men 0 1 0% Women 0 1 0% Total 0 2 0% >50 Men 0 1 0% Women 0 0 0% Total 0 1 0% GRAND TOTAL 0 3 0% EMPLOYEE RESIGNATIONS FLEXOPACK GROUP FLEXOPACK GREECE FLEXOPACK POLAND FLEXOPACK AUSTRALIA FLEXOPACK FRANCE FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 158 Leave for family reasons In our Group, there are no self-employed workers. All employees are covered by collective labor agreements, are adequately compensated, and enjoy the protections provided by such agreements. Furthermore, in all companies of the Group, all employees are covered by social protection policies. Regarding employees with disabilities, we have one colleague in Greece, representing 0.25% of the workforce. All personnel, both men and women, attended an average of 4.9 hours of training in 2024, as shown in the table below. Leave of absence 2024 Employees entitled to take leave for family reasons 100% Men 0 Women 2,20% Men 2,39% Women 0 Men 0 Women 0 Men 0 Women 0 Employees entitled to and taking parental leave FLEXOPACK GROUP Employees entitled to and taking maternity leave Employees entitled to and taking paternity leave Employees entitled to and taking caregiver leave TOTAL EMPLOYEES NUMBER TOTAL TRAINING HOURS AVERAGE HOURS 412 1.946 4,7 133 743 5,6 545 2.689 4,9 MEN 1.116 3,6 WOMEN 280 3,6 TOTAL 1.396 3,6 MEN 450 7,0 WOMEN 203 7,0 TOTAL 653 7,0 MEN 380 10,0 WOMEN 260 10,0 TOTAL 640 10,0 MEN 0 0 WOMEN 0 0 TOTAL 0 0 64 29 93 FLEXOPACK AUSTRALIA 38 26 64 FLEXOPACK FRANCE 2 1 3 FLEXOPACK POLAND TRAININGS FLEXOPACK GROUP MEN WOMEN TOTAL FLEXOPACK GREECE 308 77 385 FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 159 Health and Safety Indicators Remuneration Indicators (Gender Pay Gap and Total Compensation) FLEXOPACK GROUP GENDER PAY GAP At Group level, the gender pay gap was 42.46%. REMUNERATION RATIO At Group level, the annual remuneration ratio is 2.64. Regarding incidents, complaints, and cases of human rights violations, there were no such occurrences, complaints, compensations, or fines, as shown in the table: ESRS-G – Corporate Governance Information (applies to all entities included in the report) ESRS G1 – Business Conduct Role of the Administrative, Management, and Supervisory Bodies The Code of Ethics and Conduct (hereinafter referred to as “the Code”) is implemented by both the Company’s Management and its personnel. Furthermore, the Company ensures that its key business FATALITIES FROM WORKPLACE ACCIDENTS LTA (Lost Time Accident) RATE FROM WORKPLACE ACCIDENTS WORKPLACE ACCIDENTS WORKING DAYS LOST DUE TO WORKPLACE ACCIDENTS OCCUPATIONAL DISEASES 0 0 17 415 0 0 0 13 146 0 0 0 1 203 0 0 0 3 66 0 0 0 0 0 0 FLEXOPACK FRANCE WORKPLACE ACCIDENTS FLEXOPACK GROUP FLEXOPACK GREECE FLEXOPACK POLAND FLEXOPACK AUSTRALIA Flexopack Group Flexopack France Flexopack Polska Flexopack PTY Flexopack SA 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Complaints regarding human rights violations Compensations related to complaints of human rights violations Fines related to complaints of human rights violations FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 160 partners and associates (such as suppliers, customers, etc.) comply with the same minimum standards of ethical and professional conduct. The Board of Directors possesses the necessary knowledge of business matters. A detailed reference is provided in section GOV-1. The Code is published on our corporate website and is accessible to all. Duties of Senior Management and Personnel in Leadership Roles: • Serve as role models in conduct, • Ensure compliance with the Code by staff, • Create a work environment where concerns can be openly expressed. Each employee is personally responsible for: • Staying informed about the requirements of the Code and participating in relevant training and communication activities, • Complying with the Code’s provisions and not bypassing or violating its rules or principles for any reason, • Reporting potential violations or concerns regarding the Code to their direct supervisor and/or the Compliance Officer through the communication channels established by the Company. The Head of Regulatory Compliance regularly assesses the adequacy of the Code and advises Management and staff on its effective implementation. Handling and addressing violations of the Code is the responsibility of the Human Resources Department, supported by the Head of Regulatory Compliance, and all actions are taken fairly and transparently, in line with applicable laws and internal regulations. Violations of the Code may result in serious civil and criminal penalties, and authorization for imposing such penalties lies with the Company’s Board of Directors. Values and Principles Enshrined in the Code Include: HUMAN RIGHTS, DIVERSITY AND RESPECT The Company respects the rights of its people and strictly adheres to current labor laws, including those related to child labor, human rights, and the right of workers to unionize. It operates with respect for individual diversity and does not discriminate in hiring, compensation, promotion, termination, or retirement based on gender, disability, religion, race, color, social class, national origin, political beliefs, age, family background, sexual orientation, or any other characteristic. The Company is responsible for maintaining a harmonious work environment, offering all employees equal opportunities for growth and contribution to its objectives, with an emphasis on meritocracy in recruitment and HR management. Every employee contributes to fostering a climate of respect, fairness, and mutual understanding. The Company explicitly prohibits any form of verbal or physical violence or harassment, including sexual, psychological, or moral (mobbing) harassment, as well as all forms of workplace bullying. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 161 HEALTH AND SAFETY The Company is fully committed and responsible for creating and maintaining a completely safe working environment for its personnel (both technical and administrative). Business decisions are always made with the protection and safety of employees, customers, consumers, and, more broadly, members of the communities in which the Company operates in mind. In the area of occupational health and safety, the Company implements measures to prevent potential accidents and injuries at work and continuously strives to provide a safe and healthy workplace. ENVIRONMENTAL RESPONSIBILITY Environmental protection and sustainable development are fundamental principles of the Company. Its goal is to ensure that its operations and products have the least possible negative environmental impact, proportional to its business activity. To this end, the Company invests in available environmental protection technologies, monitors changes in relevant legislation, and takes timely action to mitigate the risk of non-compliance with the applicable legal and regulatory framework. LEGAL COMPLIANCE In its operations, the Company is committed to strict compliance with all laws governing its business activities, particularly the laws and regulations of the Hellenic Republic, the directives of the European Union, minimum industry standards, and other relevant legal requirements. Moreover, each member of the Company is expected to maintain personal integrity and ethical conduct, and to ensure compliance with Company policies and regulations in the daily performance of their duties. THIRD-PARTY OBLIGATIONS – BRIBERY AND CORRUPTION The Company upholds high standards of ethics and integrity, in full compliance with national and international anti-bribery and anti-corruption legislation. Every employee is explicitly prohibited from using their position or authority for personal gain. The Company maintains a zero-tolerance policy toward any behavior related to active or passive bribery. Employees and any third parties acting on behalf of the Company are strictly prohibited from offering or accepting anything of value (such as cash, loans, gifts, travel, preferential treatment, or business deals) in exchange for any act or omission. Under applicable law, such actions constitute a criminal offense, leading to civil and criminal penalties, as well as the termination of the employment relationship with the Company. COMPETITION LAW To foster a relationship of trust with its customers and network, the Company strictly complies with the rules of applicable competition law and does not seek to gain advantage through unfair or unlawful business practices. Any violations of the relevant laws may result in serious penalties and fines for the Company and significantly damage its reputation. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 162 FINANCIAL DATA The Company’s transactions are duly recorded and documented. Any report, statement, or record created or disclosed to the public or competent authorities accurately and completely reflects the Company’s financial position, in accordance with applicable accounting principles. COOPERATION WITH REGULATORY AUTHORITIES As part of its business activity in a regulated market, the Company may be subject to requests or investigations by supervisory authorities. Communication with these authorities and the provision of substantive responses is carried out promptly and exclusively by the duly authorized people of the Company. All information provided to authorities is characterized by absolute clarity and accuracy. TRANSACTIONS WITH CUSTOMERS AND SUPPLIERS The Company engages in business with both customers and suppliers in a fair, responsible, and fully transparent manner. Deception of any party, unlawful transactions, or preferential treatment toward customers or suppliers is strictly prohibited. Such conduct constitutes a breach of the Company’s Code of Conduct and may lead to severe sanctions. The Company does not participate in transactions that violate applicable sanctions or restrictions imposed by international or national authorities on countries, legal entities, or individuals. Αναφορικά με τις υποχρεώσεις και τις δεσμεύσεις των εργαζομένων, υπάρχουν οι κάτωθι προβλέψεις στον Κώδικα:The Company Code includes the following key provisions: CONFLICT OF INTEREST Each employee is expected to demonstrate loyalty to the Company. Any ongoing situation, relationship, or transaction where an employee’s personal interests conflict with those of the Company must be avoided. Potential conflicts of interest may arise in decision-making on behalf of the Company (e.g. partner selection, recruitment, procurement) or through relationships or dealings between employees and third parties (e.g. other professional engagements, interactions with public authorities, personal transactions with the Company’s clients or suppliers, use of confidential information). Such actual or potential situations must be promptly disclosed to the Company and managed or avoided in coordination with the Compliance Officer. DATA PROTECTION & CONFIDENTIALITY The Company takes all necessary measures and actions to ensure confidentiality and to minimize the risk of leakage or loss of corporate data. Company personnel are responsible for safeguarding the confidentiality of information they receive and/or use in the course of their duties, avoiding any action that might result in the disclosure of critical or confidential corporate information. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 163 The Company maintains mechanisms for the protection and proper dissemination of public information, particularly regarding data that could affect its market value, and ensures all necessary disclosures are made in a timely manner. Use of such information for stock trading by any person (employee or third party) who has access to it is strictly prohibited, as is the disclosure of privileged information to third parties outside the Company. To safeguard this, confidentiality agreements are signed with executives and external partners who, by the nature of their work, are exposed to confidential or sensitive information. ONLINE CONDUCT Management and all personnel of the Company are responsible for using social media prudently, in a manner that protects both their personal reputation and the Company’s public image, while respecting the privacy of colleagues and third parties. They must also maintain the confidentiality of information related to both the Company and third parties with whom the Company has business dealings. DIVERSITY POLICY The Company’s Management, in the context of its operations, implements rules and principles regarding all its employees and particularly the administrative, managerial, and supervisory bodies of the Company, which promote equal treatment and respect for diversity in terms of gender, age, potential disability, educational and professional background. In this way, it enhances diversity and inclusion within the Company. In this context, the establishment of the Diversity Policy pursuant to Article 152(f) of Law 4548/2018, as currently in force, aims to shape a corporate environment that ensures the utmost respect for all kinds of diversity. It provides equal opportunities for advancement to the management level of the Company (and more broadly, the Group), based on objective and merit-based criteria. It also contributes to eliminating discrimination, harassment, defamation, or victimization, thus eradicating all forms of inequality. This Policy defines the principles, definitions, framework, and approach of the Company regarding all matters of inclusion and diversity. It is applied in hiring, remuneration, promotions, and development of the Company’s management bodies and senior executives, with the aim of adding value and continuously strengthening and upgrading the overall management team of the Company, ultimately fostering ongoing diversity and the integration of varied perspectives. Diversity is defined as the sum of differences among a group of individuals, primarily based on age, gender, race, religion, sexual orientation, and socioeconomic background. Specifically, diversity includes, but is not limited to: a) Diversity due to identity or demographic characteristics, such as age, special needs, gender and gender identity, ethnicity and race, religious and other spiritual beliefs or the lack thereof, sexual orientation, and national origin. b) Diversity based on experiences, such as skills, capabilities, academic qualifications, and overall background. c) Cognitive diversity, including ways of thinking, learning, personality, and working styles. Equality is defined as the promotion of fair treatment and equal access to opportunities, regardless of an individual’s circumstances. These opportunities include pay, professional development, and career FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 164 progression. The application of equality means avoiding adverse treatment, discrimination, or bias due to any form of diversity. Inclusion is defined as the participation of diverse individuals in a work environment where all are treated fairly and respectfully, enjoying equal access to opportunities and resources, and being able to contribute actively and effectively to the success of the organization. Discrimination is defined as a situation in which any person is denied equal treatment in employment, including hiring, staffing, training, promotion, and benefits, for reasons related to race, origin, nationality, color, gender, sexual orientation, citizenship, religion, family status, any kind of disability, relationship or activity, social status, or source of income. Victimization is defined as the experience of any individual subjected to physical, emotional, or psychological abuse, manipulation, or emotional blackmail. The Diversity Policy is published on our website and accessible to all. POLICY ON PREVENTION AND COMBATING WORKPLACE VIOLENCE AND HARASSMENT The Company acknowledges and respects every employee’s right to a workplace free from violence and harassment and does not tolerate any such behavior, regardless of form or perpetrator. Specifically: • All forms of violence and harassment that occur during, are related to, or arise from work are strictly prohibited, including violence and harassment based on gender and sexual harassment. • The Company does not tolerate any form of discrimination or harassment based on race, color, religion or other beliefs, gender, age, national or ethnic origin, ancestry, family or social status, sexual orientation, gender identity or characteristics, physical or mental disability, chronic illness, medical condition, physical appearance, or any other characteristic protected by Greek and EU law. • Any employee who experiences or witnesses such incidents must promptly report them to Company Management. • These matters are handled with discretion, confidentiality, and effectiveness. • The Company maintains a zero-tolerance policy toward violence and harassment, regardless of origin or manifestation. RISK ASSESSMENT FOR WORKPLACE VIOLENCE AND HARASSMENT The Company conducts risk assessments regarding employee health and safety in accordance with Article 43(1a) of Law 3850/2010 (Code of Laws on Health and Safety at Work). It considers psychosocial risks as part of its occupational health and safety management and identifies and systematically re-evaluates these risks. Risk assessments take into account factors such as: • Working conditions and organization (particularly night shifts) and human resources management within the Group (e.g., fair distribution of jobs between men and women, regardless of age or other characteristics). FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 165 • The degree of employee interaction with third parties, such as customers, suppliers, service providers, etc. • The absence of discrimination, abuse of power, and gender-based cultural or social stereotypes in the workplace. • The fact that the Group employs a significant number of women, including in key managerial and high- ranking positions. • The fact that existing occupational health and safety programs address the needs of employees in the workplace. • The organizational structure and physical layout of workspaces (e.g., absence of “dark” areas or isolated workstations, and sufficient and continuous monitoring of premises via surveillance systems). Parking areas, storage facilities, and other Company installations are safe and designed to deter such risks. • Interpersonal relationships among employees, etc. MEASURES FOR THE PREVENTION, CONTROL, MITIGATION, AND RESPONSE TO RISKS OF VIOLENCE AND HARASSMENT, AND FOR THE MONITORING OF RELATED INCIDENTS / FORMS OF BEHAVIOR To minimize the likelihood of such risks and to ensure that their assessment/evaluation results in a zero or, in any case, minimal probability of incidents of violence and harassment occurring, the Company takes measures and designs a strategy as follows: • Encourages the maintenance of a work environment where respect for human dignity, collaboration, and mutual support are core values. • Promotes open communication with the employer, direct supervisors, and colleagues. • Ensures that employees receive the necessary training and information to perform their duties, particularly in roles with a higher risk of incidents of violence and harassment. • Implements technical measures (e.g., emergency alert systems, adequate lighting, etc.). • Undertakes actions to raise employee awareness on healthy behavior standards (e.g., avoiding addictions) and on issues concerning vulnerable categories of employees. • Trains its personnel on procedures for managing incidents of violence. • Regularly evaluates the effectiveness of the preventive and responsive measures in place and reviews/updates risk assessments and relevant measures. • Develops appropriate policies and provides effective procedures for submitting complaints/reports (management of reports/complaints). • Communicates the Company’s values and standards across all levels of its organizational structure and ensures compliance. • Ensures that senior management personnel act as role models of appropriate behavior. • Constantly monitors for potential abuse of power. • Has established and applies transparent recruitment and promotion procedures without discrimination, maintaining a merit-based policy for hiring and advancement. • Ensures professionalism and scientific rigor in the investigation and resolution of relevant complaints. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 166 • Strives to maintain a confidential environment and relationships of trust, so that victims and witnesses can report incidents of violence/harassment without fear. • Guides and supports victims of violence and harassment, including victims of domestic violence, in their reintegration into the workplace. Senior Management plays a crucial role in addressing violence and harassment by adopting a participatory leadership model, with its members actively involved in the Group’s operational units, thereby contributing to a positive team climate. The Company declares its zero-tolerance policy toward incidents of violence and harassment and is committed to providing its personnel with accessible information and updates, as appropriate, regarding the potential risks of violence and harassment, as well as the related prevention and protection measures, the procedures in place at the company level, and the legal options available in such cases. Furthermore, it educates its employees on the importance of the principle of equal treatment between men and women and the prohibition of discrimination based on gender or sexual orientation. As part of its awareness-raising efforts, the Company, among other actions, encourages the participation of employee representatives and management staff in training programs and educational seminars related to the identification and management of risks associated with violence and harassment in the workplace. This Policy is displayed in the workplace and is accessible via the Company's intranet. Additionally, the Company ensures that employees and their representatives have access to all necessary information concerning: • The applicable legislation on employee health and safety and how the Company implements it. • The risks to health and safety, along with the protective and preventive measures and activities concerning either the business as a whole or each type of job position and/or duty. Furthermore, the Company ensures that every employee receives, at no personal cost, appropriate and adequate training in the field of health, safety, and personal integrity. This includes the provision of information and guidance at the time of hiring, any change in duties, working conditions, or equipment/technology, and the introduction of new technology related specifically to their job position or responsibilities. OBLIGATIONS OF THE COMPANY AND EMPLOYEES As an employer, the Company is obligated to and ensures that: • The health and safety of employees are protected in all aspects of their work, including measures that ensure the safety and health of third parties. • It complies with all legal and regulatory provisions on employee health and safety. • It takes all necessary measures to protect the health and safety of employees, especially safeguarding them from acts of violence, violations of personal dignity, or harm to their moral integrity, and that any manifestations of violent or harassing behavior in the workplace are prevented and addressed. • The proper implementation of these measures is supervised and adjusted as circumstances change. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 167 • The Company adheres to the directives of the authorities and facilitates their work. • Relevant programs and procedures are designed and regularly (re)evaluated. • Company facilities and equipment are properly maintained, and their safe operation is monitored. • It keeps pace with technological developments. • It receives, investigates, and handles any complaints or reports with zero tolerance for violence and harassment, ensuring confidentiality and respect for human dignity, and does not obstruct the receipt, investigation, or handling of such reports. • It provides assistance and access to any competent public, administrative, or judicial authority investigating such incidents or behaviors, if requested. • It provides employees with information about potential risks of violence and harassment in the workplace and the relevant prevention and protection measures, including both employee rights and obligations and the Company’s responsibilities as the employer. • It displays workplace information and ensures employee access to procedures available at the company level for reporting and addressing such behaviors, including contact details for relevant authorities. • It collaborates with the occupational physician on matters of work-related physiology and psychology, including the prevention of violence and harassment. Directors and Heads of Departments or Units within the Company and its Group entities are required to inform their subordinates about this Policy and related procedures, encourage them to adopt a positive and open work culture in which they feel comfortable expressing their concerns, and implement the decisions of the Group’s competent bodies regarding the management of potential reports or complaints. Each employee is obligated to: • Comply with the health, safety, and protection regulations against violence and harassment established by the Company. • Take due care, within the scope of their abilities, for their own safety, health, and integrity, as well as for the safety, health, and integrity of other individuals affected by their acts or omissions during the course of their employment, in accordance with their training and the relevant instructions provided by the Company. • Immediately report any situations that could reasonably be considered to pose a direct and serious threat to their safety, health, and integrity, as well as any related deficiencies they observe. • Attend seminars or other training programs conducted by the Company concerning health, safety, and protection against violence and harassment. • Cooperate with the Company’s occupational physician within the scope of the physician’s responsibilities. EMPLOYEE RIGHTS Any individual affected by an incident of violence or harassment, even if the professional relationship during which the incident or behavior allegedly occurred has ended, has the following rights: • The right to judicial protection. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 168 • The right to file a complaint and request the resolution of a labor dispute before the Labor Inspectorate. • The right to report the incident to the Ombudsman, within the scope of its legal responsibilities. • The right to file a complaint internally within the Company in accordance with the Company’s Internal Complaint Management Policy for incidents of violence and harassment. • In general, the right to seek recourse with any competent public authority. The person designated by the Company as responsible for matters related to this Policy is the HR Director, who acts as the point of reference and liaison at the company level. This individual is responsible for guiding and informing employees on the prevention and handling of violence and harassment in the workplace, regardless of whether they are contacted regarding a specific incident or complaint. Employee access to this person is easy and direct, either via email at [email protected] or in person at their office. Any personal data that may come to the attention of the aforementioned individual while performing their duties as the designated reference person for employees is protected at all times, in accordance with applicable law and this Policy. PROTECTION / SUPPORT FOR EMPLOYEES WHO ARE VICTIMS OF DOMESTIC VIOLENCE The Company recognizes that domestic violence can impact the employment, productivity, health, and safety of its Employees and believes that, as an employer, it can play a meaningful role—alongside other measures—in recognizing, responding to, and addressing/mitigating the effects of domestic violence, to the extent that this is feasible. In this context, the Company supports any of its employees who may be facing domestic violence and assists them by all appropriate means, adopting reasonable adjustments to work arrangements and, where applicable, granting leave to employees who are victims of domestic violence. This support aims to help them retain their employment and reintegrate smoothly after such incidents, especially in cases where minor children, children with disabilities, or children with serious illnesses are involved. Specifically, in cases where an employee is concerned about the risks of domestic violence in the workplace—or, for instance, has received a restraining order or similar protection against a current or former partner—and generally, if a victim of domestic violence is affected in their workplace, the Company will: • Take practical actions and implement safety planning (e.g., providing a secure parking space or temporarily reassigning their work duties); • Provide information on specialized services and support; • Refer the employee to specialized domestic violence organizations, safe housing services, legal aid, and counseling services; • Grant leave, as appropriate, to allow access to support from domestic violence organizations, attend counseling, appear in court, visit the police or other authorities, etc.; • Potentially implement flexible work arrangements for a defined period and, as part of immediate support, may also offer medical and psychological assessments and support, where appropriate. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 169 MANAGEMENT OF COMPLAINTS / REPORTS OF VIOLENCE / HARASSMENT INCIDENTS • The Company ensures the collection and investigation of all evidence and information related to any submitted report/complaint. • It creates an environment of trust and safety for Employees and encourages the reporting of incidents of violence and/or harassment. • The anonymity and personal data of those who submit reports/complaints are protected. In cases where the individuals are employees, their position or future professional development within the Company is not jeopardized. • Reports/complaints are submitted without the promise or provision of any form of compensation to the person making the report/complaint. • Reports/complaints are handled with respect for general and specific principles and values such as respect for personality, trust, transparency, decency, integrity, and professional conscientiousness. In this regard, the Company: • Accepts and does not obstruct the receipt of reports/complaints; • Investigates and addresses each such complaint promptly; • Examines the reported issues with impartiality and respect for human dignity; • Takes immediate measures to protect the affected individual; • Investigates reports/complaints diligently and without discrimination; • Responds carefully to every report/complaint, showing courtesy and understanding; • Provides guidance on the available mechanisms for communicating such matters; • Ensures the protection of the identity of the complainant and any third party named in the report/complaint. • Reports/complaints are handled under this Policy as centrally as possible. Any Employee who wishes to report an incident of violence/harassment may do so, either in writing or orally, to the HR Director, who is responsible for receiving and reviewing such complaints and for informing the complainant (under the supervision of the CEO), through one of the following means: ➢ By email: [email protected] ➢ Via the complaint box located in the Company’s production area ➢ By requesting a personal meeting with the HR Department, the occupational physician, or their immediate supervisor, all of whom are obliged to forward the report/complaint to the HR Department accordingly. At any stage of the process, affected individuals may also submit a complaint to the competent administrative authorities, in accordance with their respective responsibilities. The Company ensures the proper and secure operation of the above-mentioned communication methods/channels, as well as the protection and confidentiality of the complainant. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 170 Both named and anonymous complaints are accepted. However, due to the nature of the reported/alleged incidents, the submission of named complaints is encouraged, as it facilitates the necessary investigation and the implementation of appropriate measures for the effective management of the incidents Upon receipt of a complaint, it is reviewed and assessed, the incident is investigated, resolution proposals are formulated, the parties involved are informed, and once the relevant investigation is completed, any necessary measures to resolve the reported issue are taken, with the approval of the Chief Executive Officer. The HR Department, as the designated contact point for reporting, may request additional information and maintain communication with the complainant, and is at all times committed to maintaining confidentiality and protecting personal data collected in the course of fulfilling its related duties. The investigation should be completed within a reasonable timeframe, depending on the nature and complexity of the reported issue, and any delay must be adequately justified. If the report/complaint concerns an employee of the HR Department or a person involved in the investigation process, or if any of these individuals has a conflict of interest, that person shall recuse themselves from the investigation and be replaced. The HR Department maintains a record of all reports/complaints it receives, along with relevant documents associated with each case. The Company ensures the confidentiality of the identity of the complainant, the accused, and any third party named in the report/complaint. Personal data unrelated to the nature of the complaint is not further processed and is deleted. Any processing of personal data under this Policy is carried out in accordance with the applicable national and EU legislation. The data of all parties involved is protected and processed solely for the purpose of verifying the validity of the report/complaint and investigating the incident in question. Access to the data included in the reports/complaints for the purpose of reviewing or managing them is granted only to those involved in the handling and investigation of the incident, as well as the individuals mentioned in the report/complaint, witnesses, and any other party with a legitimate interest. The Company takes all necessary technical and organizational measures to protect the related personal data. No individual who submits a report/complaint is subject to harmful consequences arising from their actions, such as unjustified disciplinary measures, victimization, threats, or any other adverse treatment. In this context, any dismissal or termination of the employment relationship, as well as any other adverse treatment of an Employee, is prohibited and void if it constitutes retaliation or a countermeasure for reporting or being involved in an incident of violence or harassment—whether it be a complaint, testimony, or any other action—either within the Group or before a court or other authority. If an Employee violates the prohibition against violence and harassment, the Company is obliged to take all necessary, appropriate, and proportionate measures, as applicable, against the alleged perpetrator to prevent the recurrence of such an incident or behavior. The Company, as well as any designated person or department responsible for receiving and managing complaints at the business level, shall cooperate with all competent public, administrative, or judicial authorities, which, either ex officio or upon request by an affected individual, request information or data FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 171 within their jurisdiction. The Company is committed to providing assistance and access to relevant information while maintaining records and protecting personal data as outlined above. Supplier Relationship Management (G1-2_01-03) FLEXOPACK is registered with SEDEX under reference number ZC1081533. Sedex facilitates the management, assessment, and reporting of sustainability performance, assisting in achieving supply chain goals. More than 85,000 businesses worldwide have chosen Sedex as their trusted partner in building socially and environmentally sustainable supply chains. As a non-profit, membership-based organization, Sedex supports the improvement of ethical and responsible business practices across global supply chains. The Company has successfully passed the SMETA audit for the 4-Pillar Requirements, covering key areas: • Labor Standards & Human Rights: Includes labor management systems, wage policies, working hours, elimination of child labor and modern slavery, as well as anti-discrimination policies. • Environmental Standards: Covers environmental management systems, waste management, raw material use, water management, pollution and emission reduction, and improvements in energy efficiency. • Health & Safety Standards: Includes health and safety management, training on health and safety matters, emergency preparedness and fire safety, use of machinery and vehicles at the factory, cleanliness, and hygiene. • Business Integrity: Covers business ethics management systems and anti-corruption policies. Prevention and Detection of Corruption and Bribery A specific reference is made in the Company’s Code: BRIBERY AND CORRUPTION The Company upholds high standards of ethics and integrity and complies with both national and international anti-bribery and anti-corruption laws. Every employee of the Company has an explicit obligation not to use their position and authority for personal gain. The Company demonstrates zero tolerance for any situation or behavior related to active or passive bribery. Employees and any third party acting on behalf of the Company are strictly prohibited from offering or accepting anything of value (such as cash, loans, gifts, travel, preferential treatment, business transactions) in exchange for action or inaction. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 172 In accordance with applicable legislation, the above behaviors constitute criminal offenses and carry civil and criminal penalties, including termination of the employee's cooperation with the Company. The policy has been published on the Company’s website and communicated via the intranet, while the Board of Directors has been informed of the policy since its creation and throughout its implementation. Currently, the policy is incorporated within the Company Code but is not yet aligned with the United Nations Convention against Corruption. To strengthen this area, we are considering setting a target to align with the UN Convention by 2027, aiming to enhance transparency and ensure full coverage of this data point. At the same time, as no related training has yet been conducted, we aim to organize awareness and training sessions for both staff and the Board of Directors. Disclosure of Protection Measures for Whistleblowing, Including Whistleblower Protection In connection with the reporting of corruption and bribery, the Group implements a whistleblower protection policy. Whistleblower Protection Whistleblower protection applies after the individual has been informed in writing of the reasons for disclosing their identity and other confidential information, unless providing such information would obstruct the investigation or legal proceedings. Following this notification, the whistleblower has the right to submit written comments, which are not disclosed. Unjustified failure to provide this notification constitutes a disciplinary offense, and the whistleblower has the right to submit written comments to the competent authority regarding the disclosure. If the reasons provided for the objection are deemed insufficient, disclosure of the identity and other confidential information will not be prevented. Reports and complaints must always be made in good faith. The Company’s Management is committed to protecting the whistleblower from: (a) Any acts of retaliation, as specifically outlined below in section 5.3, related to their current position and/or future career development, (b) Any other form of discrimination, threats, or adverse treatment, and (c) Acts of targeting or victimization by the competent authority responsible for receiving and investigating the report. Personal data and any information that may directly or indirectly reveal the identity of the whistleblower are not disclosed to anyone except authorized personnel of the Company who are responsible for receiving or following up on the reports, unless explicit consent is provided by the whistleblower. To that end, the Company adopts appropriate technical and organizational measures, such as the use of pseudonyms during report tracking and communication with the competent authorities. “Retaliation” refers to any negative consequences that the whistleblower may suffer as a result of submitting a report or participating in an investigation regarding a submitted complaint. Indicative examples of potential retaliatory acts include: FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 173 (i) suspension, dismissal, or equivalent measures, (ii) workplace harassment (bullying), (iii) adverse treatment, (iv) assignment of excessive tasks, (v) removal of duties without justification and replacement with new ones, denial or omission of promotion, job reassignment, change in working hours, (vi) obstruction of labor rights (participation in training, leave, union activity, etc.), (vii) reprimand, imposition of disciplinary or other penalties, (viii) placement on a “blacklist”. In the event of workplace retaliation, the victim reports the incident to the Human Resources Department, which immediately investigates the matter and keeps the victim informed about the progress of the investigation with the goal of restoring a safe and respectful work environment. Throughout the process, the presumption of innocence applies to both the whistleblower and the reported individual, aiming to protect all parties involved and to ensure the necessary objectivity and impartiality. Accordingly, if any of the above situations constitute an act of retaliation in response to a report or complaint, such action is considered null and void and has no legal effect. In any case, the whistleblowers benefit from the measures and protections explicitly provided under the applicable regulatory framework (indicatively in Articles 18 to 22 of Law 4990/2022). If a whistleblower intentionally submits a false report or a report in bad faith, they are not protected against retaliation and may face consequences in their employment relationship, including, but not limited to, immediate termination of their employment contract, as well as the imposition of a monetary fine and imprisonment of at least two (2) years, depending on the case. Violation of Anti-Corruption and Anti-Bribery Laws There have been no incidents of bribery, corruption, or fines imposed for any such matters. Payment Practices The average number of days for invoice payment from the start date of the contractual or legal payment deadline is 70 days. The company’s payment terms in number of days, per main supplier category, are ≥ 60 days, and approximately 80% of total payments align with the above term. We adhere to and aim to exceed the industry’s payment standards, and there are no outstanding legal cases regarding payment delays Koropi, 28 April 2025 THE BOARD OF DIRECTORS FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 174 Independent Auditor’s Limited Assurance Report on Sustainability Statement (This report has been translated from Greek original version) Independent Auditor’s Limited Assurance Report on FLEXOPACK S.A. Sustainability Statement INDEPENDENT AUDITOR’S LIMITED ASSURANCE REPORT To the shareholders of FLEXOPACK S.A. We have conducted a limited assurance engagement on the consolidated Sustainability Statement of FLEXOPACK S.A. (hereinafter the “Company” and/or “Group”), included in section Sustainability Statement of the consolidated Management Report of the Board of Directors (hereinafter the “Sustainability Statement”), for the period from 01.01.2024 to 31.12.2024. Limited assurance conclusion Based on the procedures performed, as described below in the paragraph “Scope of Work Performed,” as well as the evidence obtained, nothing has come to our attention that causes us to believe that: • the Sustainability Statement has not been prepared, in all material respects, in accordance with article 154 of L. 4548/2018 as amended and effective by L. 5164/2024, which transposed article 29(a) of EU Directive 2013/34/EU into the Greek legislation • the Sustainability Statement does not comply with the European Sustainability Reporting Standards (hereinafter “ESRS”), in accordance with Regulation (EU) 2023/2772 of the European Commission of July 31,2023 and Directive (EU) 2022/2464 of the European Parliament and the Council of December 14, 2022 • the process carried out by the Company to identify and assess the material risks and opportunities (the "Process"), as set out in the section “ESRS-2-IRO – Management of Impacts, Risks, and Opportunities (IRO)” of the Sustainability Statement, does not comply with "Disclosure Requirement IRO-1 Description of the processes to identify and assess material Impact, Risk, and Opportunities " of ESRS 2 "General Disclosures" FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 175 • the disclosures in section “EU Taxonomy Report 2024” of the Sustainability Statement do not comply with article 8 of EU Regulation 2020/852 This assurance report does not cover information relating to prior periods. Basis for the conclusion The limited assurance engagement was conducted in accordance with International Standard on Assurance Engagements 3000 (Revised), “Assurance Engagements Other than Audits or Reviews of Historical Financial Information” (hereinafter “ISAE 3000”). The procedures in a limited assurance engagement vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been performed. Our responsibilities are further described in the section “Auditor’s Responsibilities.” Professional Ethics and Quality Management We are independent of the Company and Group, throughout this engagement and have complied with the requirements of the Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants (IESBA Code), the ethics and independence requirements of L.4449/2017 and EU Regulation 537/2014. Our auditing firm applies the International Standard on Quality Management 1 (ISQM 1) “Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services engagements”, and therefore 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 Company’s Management for the Sustainability Statement The Company’s and Group’s Management is responsible for the design and the implementation of an appropriate process to determine the required information to be included in the Sustainability Statement in accordance with the ESRS as well as for the disclosure of the Process in section “ESRS 2 - GOV – Governance” of the Sustainability Statement. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 176 More specifically, this responsibility includes: • Obtaining an understanding of the context in which the Company and Group activities and business relationships take place and understanding the affected stakeholders • Identifying the actual and potential impacts (both negative and positive) related to sustainability matters, as well as the risks and opportunities that affect, or could reasonably be expected to affect, the Company’s and Group’s financial position, financial performance, cash flows, access to finance or cost of capital in the short-, medium-, or long-term • Assessing the materiality of the identified impacts, risks and opportunities related to sustainability matters through the selection and application of appropriate thresholds; and • Formulating assumptions that are reasonable under the circumstances. The Company’s and Group’s Management is further responsible for the preparation of the Sustainability Statement, in accordance with article 154 of L. 4548/2018, as amended and in force by L. 5164/2024 which transposed article 29(a) of EU Directive 2013/34 into the Greek legislation. In this context, the Company’s and Group’s Management is responsible for: • Compliance of the Sustainability Statement with the ESRS • Preparing the disclosures in section “EU Taxonomy Report 2024” of the Sustainability Statement, in compliance with the requirements of article 8 of EU Regulation 2020/852 • Designing and implementing such internal controls as Management determines are necessary to ensure that the Sustainability Statement is free from material misstatement, whether due to fraud or error; and • Selecting and applying appropriate reporting methods, including assumptions and estimates about individual disclosures in the Sustainability Statement that have been valuated as reasonable under the circumstances. The Company’s Audit Committee is responsible for supervising the process of preparing the Company’s Sustainability Statement. Inherent limitations in preparing the Sustainability Statement FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 177 As outlined in section to the Sustainability Statement “ESRS 2 – BP: Basis for Preparation”, “ESRS E1 – Climate Change”, “ESRS E2 – Pollution” and “ESRS E5 – Circular Economy”, the information disclosed under the relevant reporting requirements is based on significant estimates and assumptions, particularly in areas such as Scope 1, Direct Emissions Measurements, inputs and waste, which are subject to inherent uncertainty regarding their completeness and accuracy due to limitations in the available data and measurement methodologies.” In reporting forward-looking statements in accordance with ESRS, the Company’s Management is required to prepare forward-looking information based on disclosed assumptions regarding future events and probable future actions of the Company and Group. The actual outcome of these actions may be different, as anticipated events do not often occur as expected. Our work covered the items listed in the “Scope of Work Performed” section to obtain limited assurance based on the procedures included in the Program. Our work does not constitute an audit or review of historical financial information, in accordance with the applicable International Standards on Auditing or International Standards on Review Engagements, and therefore we do not express any assurance other than that set out in the "Scope of Work Performed" section. Our engagement was limited to the Greek version of the 2024 Sustainability Statement. Therefore, in the event of any inconsistency in translation between the Greek and English versions, as far as our conclusions are concerned, the Greek version of the Statement prevails. Auditor’s responsibilities This limited assurance report has been prepared in accordance with the provisions of article 154C of L. 4548/2018 and article 32A of L.4449/2017. Our responsibility is to plan and perform the assurance engagement to obtain limited assurance as to whether the Sustainability Statement is free from material misstatement, due to fraud or error, and to issue a limited assurance report that includes our conclusion. Misstatements may arise from fraud or error and are considered material when, individually or in the aggregate, they could reasonably be expected to affect the decisions of users made on the basis of the Sustainability Statement taken as a whole. In the context of a limited assurance engagement in accordance with ISAE 3000 (Revised), we exercise professional judgement and maintain professional skepticism throughout the engagement. Our responsibilities with respect to the Sustainability Statement, in relation to the Process, include: • Conducting risk assessment procedures, including an understanding of the relevant internal controls, to identify risks related to whether the Process, followed by the Company and Group to determine the information reported in the Sustainability Statement does not meet the applicable requirements of the ESRS, but not for the purpose of providing a conclusion regarding the effectiveness of the internal controls on the Process and FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 178 • Preparing and conducting procedures to assess whether the Process to identify the information reported in the Sustainability Statement is consistent with the description of the Process as disclosed in section “ESRS 2 - GOV – Governance” of the Statement herein We are further responsible for: • Conducting risk assessment procedures, including an understanding of the relevant internal controls, to identify those disclosures that may be materially misstated, whether due to fraud or error, but not for the purpose of providing a conclusion regarding the effectiveness of the Company’s and Group's internal controls • Preparing and conducting procedures related to those disclosures of the Sustainability Statement, in which a material error is likely to occur. The risk of not detecting a material misstatement resulting from fraud is higher than that arising from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the deviations from internal controls Scope of Work Performed Our work includes performing procedures and obtaining assurance evidence for the purpose of forming a limited assurance conclusion and covers only the limited assurance procedures provided for in the limited assurance program issued by the 22.1.2025 decision of the Hellenic Accounting and Auditing Supervisory Oversight Board's (hereinafter "Program"), as formulated for the purpose of issuing a limited assurance report on the Company’s and Group's Sustainability Statement. Our procedures were designed to obtain a limited level of assurance on which to base our conclusion, and which do not provide all the evidence that would be required to provide a reasonable level of assurance. Athens, 16/4/2025 Certified Auditor Accountant Athina Moustaki SOEL R.Ν.: 28871 FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 179 CHAPTER 3: Independent Auditor’s Report Independent Auditor’s Report (This report has been translated from Greek original version) To the Shareholders of “FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY” Report on the Audit of the Separate and Consolidated Financial Statements Opinion We have audited the accompanying separate and consolidated financial statements of “FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY” (the “Company”), which comprise the separate and consolidated statement of financial position as at December 31, 2024, the separate and consolidated statements of comprehensive income, changes in equity and cash flows for the year then ended, as well as the notes to the financial statements that include significant accounting policy information. In our opinion, the accompanying separate and consolidated financial statements present fairly, in all material respects, the financial position of “FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY” and its subsidiaries (the “Group”) as at December 31, 2024, their financial performance and cash flows for the year then ended, in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (ISAs), as incorporated into the Greek Legislation. Our responsibilities under those standards are further described in the “Auditor’s responsibilities for the audit of the separate and consolidated financial statements” section of our report. We are independent of the Company and its consolidated subsidiaries, during our entire assignment, in accordance with the International Ethics Standards Board for Accountants International Code of Ethics for Professional Accountants as incorporated in the Greek Legislation, and the ethical requirements relevant to the audit of the separate and consolidated financial statements in Greece and we have fulfilled our ethical responsibilities in accordance with current legislation requirements and the aforementioned Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Key audit matters Key audit matters are the matters that, in our professional judgement, were of most significance in our audit of the separate and consolidated financial statements of the current year. These matters, as well as the related risks of significant misstatement, were addressed in the context of our audit of the separate and consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 180 Key audit matters How our audit addressed the key audit matter Inventory valuation At December 31, 2024, the Group holds inventories of value amounting to € 54,94 mil. (the Company: € 25,48 mil). Inventory items are measured at a lower of cost and net realizable value as referred to in the Group’s accounting policies. Net realizable value is the estimated selling price less any related selling expenses. Cost of finished products is determined applying the weighted cost method and include costs of raw materials, direct labor costs and indirect costs. Management makes appropriate care for waste, obsolete and at low turnover inventory as long as the projected sizes are exceeded. The decrease in the carrying amount from accounting to net realizable value and losses in inventory are expensed over the period to which depreciation or losses correspond. We have identified this area as one of the key audit matters, since inventories constitute a significant asset, and secondly, due to the estimates required both to measure the value of inventory and to calculate production costs. Measurement of inventory value is based on the management’s estimates that take into account inventory turnover within the FY, its useful life or liquidation of slow turnover inventory. Information concerning the Company’s accounting policies for inventories is referred to in Notes 2.2, 3.8 and 6.7 to the financial statements. Our audit approach was based on the audit risk and includes, among other things, performing the following procedures: • We reviewed internal controls regarding the warehouse monitoring circuit, cost accounting for products, physical count of inventory and year closing measurement of inventory value. • We monitored physical count of inventory and conducted sampling re- measurements. • We performed sampling confirmation of sound calculation of the weighted average cost method. • We assessed the Management's estimates of obsolete items and slow moving inventory, making sample references to historical sales data • We compared, on sampling basis, the sales prices with the cost of disposed inventory in order to identify inventory items sold at a negative profit margin. Moreover, we assessed the extent, to which it taken into account at their measure at the lower amount between acquisition cost and net realizable value. • We assessed the adequacy of the relative disclosures of the Company’s financial statements, according to the provisions of IFRS, in this regard. Other information Management is responsible for the other information. The other information is included in the Management Report of the Board of Directors, for which reference is made in the “Report on other Legal and Regulatory Requirements” and the Representations of the Members of the Board of Directors, but does not include the separate and consolidated financial statements and the auditor’s report thereon. Our opinion on the separate and consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 181 In connection with our audit of the separate and consolidated financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the separate and consolidated financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the management and those charged with governance for the separate and consolidated financial statements Management is responsible for the preparation and fair presentation of the separate and consolidated financial statements in accordance with the IFRSs as adopted by the European Union and for such internal control as management determines is necessary to enable the preparation of the separate and consolidated financial statements that are free from material misstatement, whether due to fraud or error. In preparing the separate and consolidated financial statements, management is responsible for assessing the Company’s and Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting, unless there is an intention to liquidate the Company and the Group or to cease operations, or there is no realistic alternative but to do so. The Audit Committee (artic. 44 Law 4449/2017) of the Company is responsible for overseeing the Company’s and Group’s financial reporting process. Auditor’s responsibilities for the audit of the separate and consolidated financial statements Our objectives are to obtain reasonable assurance about whether the separate and consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs, as incorporated into the Greek Law, will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these separate and consolidated financial statements. As part of an audit in accordance with ISAs, as incorporated into the Greek Law, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the separate and consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of 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 and Group’s internal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 182 • Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s and Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the separate and consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company and the Group to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the separate and consolidated financial statements, including the disclosures, and whether the separate and consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation. • Design and conduct our audit of the Group in order to obtain sufficient and appropriate audit evidence about the financial information of the entities or business units within the Group as a basis to form audit opinion on the separate and consolidated financial statements. We are responsible for the direction, supervision and review of the audit procedures performed for the Group audit purposes. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the separate and consolidated financial statements of the periods under audit and are therefore the key audit matters. Report on Other Legal and Regulatory Requirements 1. Board of Directors’’ Report Taking into consideration that Management is responsible for the preparation of the Board of Directors’ Report and the Corporate Governance Statement included in this report, according to the provisions of paragraph 1, cases aa', ab' and b', of Article 154C of Law 4548/2018, which do not include the sustainability report and for which we have issued a related limited assurance report dated 16 April 2025 in accordance with International Standard on Assurance Engagements 3000 (Revised), we note the following: i. The Board of Directors’ Report includes the corporate governance statement that provides the information required by Article 152 of Law 4548/2018. ii. In our opinion, the Board of Directors’ Report has been prepared in accordance with the legal requirements of articles 150 and 153 of Law 4548/2018 with the exception of the requirement to submit a sustainability report under paragraph 5A of Article 150 of the same law and the content FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 183 of the report is consistent with the accompanying financial statements for the year ended December 31, 2024. iii. Based on the knowledge we obtained during our audit of “FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY” and its environment, we have not identified any material misstatements in the Board of Directors’ Report. 2. Complementary Report to the Audit Committee Our audit opinion on the accompanying separate and consolidated financial statements is consistent with the Complementary Report to the Company’s Audit Committee in accordance with Article 11 of the European Union (EU) Regulation 537/2014. 3. Provision of non-audit services We have not provided to the Company and its subsidiaries any prohibited non-audit services referred to in article 5 of Regulation (EU) 537/2014. The allowed non-audit services provided by us to the Company and its subsidiaries during the financial year that ended 31st December 2024, are disclosed in note 6.28 of the accompanying separate and consolidated financial statements. 4. Auditor’s Appointment We were appointed for the first time as Certified Public Accountants Auditors of the Company based on the decision of the Annual General Shareholders’ Meeting dated 26/06/2020. Since then, our appointment has been continuously renewed for a total period of 5 years based on the decisions of the Annual General Shareholders’ Meetings. 5. Bylaws (Internal Regulations) The Company has Internal Regulations in accordance with the provisions of Article 14 of Law 4706/2020. 6. Assurance Report on European Single Electronic Format Subject Matter We have undertaken a reasonable assurance engagement to review the digital records of FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY (hereinafter “the Company and/or the Group), prepared in accordance with the European Single Electronic Format (ESEF), which comprise the separate and consolidated financial statements of the Company and the Group for the year ended December 31, 2024, in XHTML, as well as the provided XBRL “213800SD9V875QXDRR32-2024-12-31-el.zip” with the appropriate mark-up, on the aforementioned consolidated financial statements including other explanatory information (Notes to financial statements) (hereinafter (the "Subject Matter") in order to verify that it was prepared in accordance with the requirements set out in the Applicable Criteria section. Applicable Criteria The Applicable Criteria for the European Single Electronic Format (ESEF) are prepared in accordance with the Commission Delegated Regulation (EU) 2018/815 as amended by the Commission Delegated Regulation (EU) FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 184 2020/1989 (hereinafter the ESEF Regulation) and the European Commission Interpretative Communication 2020/C379/01 of November 10, 2020, in conformance with Law 3556/2007 and the relevant announcements of the Hellenic Capital Market Commission and the Athens Stock Exchange (ESEF Regulatory Framework). In summary, this framework includes, inter alia, the following requirements: All annual financial reports shall be prepared in XHTML format. For the consolidated financial statements in accordance with IFRS, financial information included in the Statements of Comprehensive Income, Financial Position, Changes in Equity and Cash Flows, as well as the financial information included in other explanatory information shall be marked-up with XBRL (XBRL ‘tags’ and “‘block tag”’), in accordance with the effective ESEF Taxonomy. ESEF technical specifications, including the relevant taxonomy, are set out in the ESEF Regulatory Technical Standards. Responsibilities of management and those charged with governance Management is responsible for the preparation and submission of the separate and consolidated financial statements of the Company and the Group for the year ended December 31, 2024, in accordance with the Applicable Criteria, and for such internal control as management determines is necessary to enable the preparation of digital records that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibilities Our responsibility is to issue this Report in respect of the assessment of the Subject Matter, based on our assurance engagement, as described below in the section "Scope of the Engagement”. We conducted our work in accordance with the International Standard on Assurance Engagements 3000 “Assurance Engagements other than Audits or Reviews of Historical Financial Information” (hereinafter ISAE 3000”). ISAE 3000 requires that we plan and perform our work to obtain reasonable assurance to evaluate the Subject Matter in accordance with the Applicable Criteria. As part of the procedures performed, we assess the risk of material misstatement of information related to the Subject Matter. We consider that the evidence we have obtained is sufficient and appropriate and supports the conclusion reached in this assurance report. Professional ethics and quality management We are independent of the Company and the Group during our entire assignment and we have complied with the requirements of the International Ethics Standards Board for Accountants Code of Ethics for Professional Accountants (IESBA Code) the ethical and independence requirements of Law 4449/2017 and Regulation (EU) 537/2014. Our auditing firm applies the International Standard on Quality Management (ISQM) 1 “Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements” and accordingly, operates a comprehensive system of quality management including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 185 Scope of engagement The assurance procedures we performed covers, in a limited way, the items included in the BoD Resolution 214/4/11-02-2022 of the Hellenic Accounting and Auditing Standards Oversight Board (HAASOB) and the "Guidelines in relation to the work and assurance report of the Statutory Auditors on the European Single Electronic Reporting Form (ESEF) of the issuers with securities listed on a regulated market in Greece", as issued by the Institute of Certified Public Accountants of Greece (SOEL) on 14/02/2022, so as to obtain reasonable assurance that the financial statements of the Company prepared by the Management comply in all material respects with the Applicable Criteria. Inherent limitations Our work covered the items listed in the "Scope of Engagement" section to obtain reasonable assurance based on the procedures described. In this context, the work we performed could not provide absolute assurance that all matters that could be considered material weaknesses would be disclosed. Conclusion Based on the procedures performed and the evidence obtained, we express the conclusion that the separate and consolidated financial statements of the Company and the Group for the year ended December 31, 2024, in XHTML format, as well as the provided XBRL file “213800SD9V875QXDRR32-2024-12-31-el.zip” with the appropriate mark-up on the above consolidated financial statements, including the Notes, have been prepared, in all material respects, in accordance with the Applicable Criteria. Athens, April 29, 2025 The Certified Public Accountant Auditor Eleftherios Koutsopoulos Registry Number SOEL 44651 FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 186 CHAPTER 4 : Annual Financial Statements Annual Separate and Consolidated Financial Statements As of 31 st December 2024 (January 1 st 2024 – December 31 st 2024) According to the International Financial Reporting Standards (IFRS) FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 187 Statement of Financial Position GROUP COMPANY ASSETS Note 31/12/2024 31/12/2023 31/12/2024 31/12/2023 Non-current assets Tangible Assets 6.1 86,955 71,394 49,133 48,273 Right-of-use Assets 6.14 1,140 1,105 726 628 Goodwill 6.2 252 252 0 0 Intangible Assets 6.3 1,814 1,942 1,814 1,942 Investments in subsidiary companies 6.4 0 0 31,914 30,414 Investments in associate companies 6.5 8,320 7,300 2,199 2,199 Other Long-term Receivables 6.6 692 122 686 121 Total non-current assets 99,173 82,115 86,472 83,577 Current assets Inventories 6.7 54,942 45,699 25,477 21,293 Trade Receivables 6.8 24,051 23,045 43,458 31,833 Other Receivables 6.9 6,953 7,118 4,993 5,105 Cash and cash equivalents 6.10 38,416 39,955 30,889 24,418 Total current assets 124,362 115,818 104,816 82,648 Total Assets 223,535 197,933 191,288 166,225 EQUITY & LIABILITIES Share capital 6.11.1 6,409 6,409 6,409 6,409 Share premium 6.11.1 3,683 3,683 3,683 3,683 Capital Reserves 6.11.2 26,158 24,704 24,796 23,925 Retained Earnings 6.11.3 94,904 86,589 80,933 73,519 Total Shareholders' Funds corresponding to the shareholders of the Company 131,154 121,386 115,821 107,535 LIABILITIES Long-term liabilities Deferred tax liabilities 6.12 725 982 865 878 Provision for employee benefits 6.13 763 637 763 637 Long-term bank liabilities 6.15 43,055 32,259 38,829 27,191 Other long-term liabilities 6.15.1 2,123 2,324 748 1,346 Liabilities from Leases 6.14 628 586 405 383 Other provisions 6.16 620 515 238 238 Total Long-term Liabilities 47,914 37,303 41,849 30,673 Short-term liabilities Suppliers and related liabilities 6.17 31,205 28,435 23,221 20,921 Liabilities from Leases 6.14 541 542 346 260 Liabilities from income tax 6.18 4,611 3,390 3,904 1,975 Short-term bank liabilities 6.15 8,110 6,878 6,148 4,861 Total Short-term Liabilities 44,467 39,245 33,618 28,017 Total Liabilities 92,381 76,548 75,467 58,690 Total Equity & Liabilities 223,535 197,933 191,288 166,225 The accompanying notes constitute an inseparable part of the financial statements. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 188 Income Statement GROUP COMPANY Continuing Operations Note 1/1- 31/12/2024 1/1- 31/12/2023 1/1- 31/12/2024 1/1- 31/12/2023 Turnover 6.19 156,593 153,090 119,085 112,521 Cost of Sales 6.20 (117,256) (111,095) (91,310) (86,665) Gross Profit 39,338 41,996 27,775 25,857 Other operating income 6.22 288 455 236 256 Administrative expenses 6.20 (7,713) (6,542) (5,829) (5,085) Research & Development Expenses 6.20 (1,779) (1,806) (1,674) (1,653) Distribution expenses 6.20 (16,442) (13,865) (7,696) (6,691) Other operating expenses 6.22 (187) (404) (66) (72) Operating Results 13,505 19,834 12,746 12,612 Financial income 6.23 741 413 711 401 Financial expenses 6.23 (1,986) (1,732) (1,681) (1,527) Other Financial Results 6.24 783 (549) 939 (691) Proportion of associate companies' Result 6.5 1,020 1,092 0 0 Earnings before taxes 14,063 19,057 12,715 10,795 Income tax 6.25 (3,388) (3,956) (2,941) (2,498) Earnings after taxes 10,675 15,101 9,774 8,297 Allocated to: -Shareholders of the parent 10,675 15,101 9,774 8,297 Basic Earnings per share (Euro per share) 6.30 0.9067 1.2857 0.8302 0.7064 Adjusted (Diluted) Earnings per share (Euro per share) 6.30 0.8992 1.2806 0.8233 0.7036 The accompanying notes constitute an inseparable part of the financial statements. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 189 Statement of Comprehensive Income GROUP GROUP COMPANY COMPANY 1/1- 1/1- 1/1- 1/1- Continuing Operations Note 31/12/2024 31/12/2023 31/12/2024 31/12/2023 Earnings after taxes 10,675 15,101 9,774 8,297 Other comprehensive income Amounts which may be transferred into the results in subsequent periods Foreign exchange differences from consolidation of foreign subsidiaries 582 1,170 0 0 Amounts which will not be transferred into the results in subsequent periods Actuarial profit-(losses) in personnel benefit plan 6.13 (37) (6) (37) (6) Corresponding income tax 8 1 8 1 Other comprehensive income after taxes 553 1,164 (29) (5) Total comprehensive income after taxes 11,227 16,265 9,745 8,292 Allocated to : -Shareholders of the parent 11,227 16,265 9,745 8,292 The accompanying notes constitute an inseparable part of the financial statements. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 190 Consolidated Statement of Changes in Equity Allocated to the shareholders of the parent company GROUP Note Share capital Share premium Reserves FX differences from consolidation Retained earnings Total Balance as at 1/1/2023 6,369 3,500 23,686 (502) 73,457 106,509 Earnings after taxes 0 0 0 0 15,101 15,101 Other comprehensive income after taxes 0 0 0 1,170 (5) 1,164 Distributed dividends 0 0 0 0 (1,766) (1,766) Formation of ordinary reserves 0 0 459 0 (459) 0 Tax free reserves Law 3908/2011 0 0 62 0 (62) 0 Tax free reserves Law 4172/2013 0 0 100 0 (100) 0 Share capital increase 40 183 0 0 0 223 Exercise of stock options 0 0 (423) 0 423 0 Stock options 0 0 154 0 0 154 Balance as at 31/12/2023 6,409 3,683 24,037 667 86,589 121,385 Balance as at 1/1/2024 6,409 3,683 24,037 667 86,589 121,385 Earnings after taxes 0 0 0 0 10,675 10,675 Other comprehensive income after taxes 0 0 0 582 (29) 553 Distributed dividends 6.31 0 0 0 0 (1,766) (1,766) Formation of ordinary reserves 0 0 415 0 (415) 0 Tax free reserves Law 4172/2013 6.11.2 0 0 150 0 (150) 0 Stock options 0 0 307 0 0 307 Balance as at 31/12/2024 6,409 3,683 24,909 1,249 94,904 131,154 The accompanying notes constitute an inseparable part of the financial statements. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 191 Statement of Changes in Parent Company’s Equity COMPANY Note Share capital Share premium Reserves Retained earnings Total Balance as at 1/1/2023 6,369 3,500 23,573 67,190 100,632 Earnings after taxes 0 0 0 8,297 8,297 Other comprehensive income after taxes 0 0 0 (5) (5) Distributed dividends 0 0 0 (1,766) (1,766) Formation of ordinary reserves 0 0 459 (459) 0 Tax free reserves Law 3908/2011 0 0 62 (62) 0 Tax free reserves Law 4172/2013 0 0 100 (100) 0 Share capital increase 40 183 0 0 223 Exercise of stock options 0 0 (423) 423 0 Stock options 0 0 154 0 154 Balance as at 31/12/2023 6,409 3,683 23,924 73,519 107,535 Balance as at 1/1/2024 6,409 3,683 23,924 73,519 107,535 Earnings after taxes 0 0 0 9,774 9,774 Other comprehensive income after taxes 0 0 0 (29) (29) Distributed dividends 6.31 0 0 0 (1,766) (1,766) Formation of ordinary reserves 0 0 415 (415) 0 Tax free reserves Law 4172/2013 6.11.2 0 0 150 (150) 0 Stock options 0 0 307 0 307 Balance as at 31/12/2024 6,409 3,683 24,796 80,933 115,821 The accompanying notes constitute an inseparable part of the financial statements. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 192 Statement of Cash Flows GROUP COMPANY Indirect method Note 1/1- 31/12/2024 1/1- 31/12/2023 1/1- 31/12/2024 1/1- 31/12/2023 Cash flows from operating activities Earnings before taxes 14,063 19,057 12,715 10,795 Adjustments on Earnings for: Depreciation of tangible assets 6.1 6,150 5,008 4,282 3,531 Amortization of intangible assets 6.3 333 415 333 415 Amortization of right-of-use assets 6.14 669 517 351 264 Provisions 501 143 395 225 Impairment 6.7-6.8 48 99 0 17 Foreign exchange differences 6.24 (222) 546 (378) 691 Profit/(Loss) from the sale of tangible assets (17) (19) (1) (20) (Earnings)/Losses with regard to fair value of other financial assets via the results (561) 0 (561) 0 Interest income 6.23 (741) (413) (711) (401) Interest expenses 6.23 1,993 1,732 1,681 1,527 Share of results in associate companies 6.5 (1,020) (1,092) 0 0 Total adjustments on Earnings for Cash Flows 7,134 6,937 5,391 6,250 21,197 25,994 18,106 17,044 Working capital changes (Increase) / decrease of inventories (8,731) 6,231 (4,184) 6,721 (Increase) / decrease of receivables 220 154 (10,589) 7,748 Increase / (decrease) of liabilities 1,194 1,396 1,891 (3,247) (7,317) 7,780 (12,883) 11,222 Cash flows from operating activities 13,880 33,774 5,223 28,267 minus: Income tax paid (3,204) (5,695) (1,754) (3,575) Net cash flows from operating activities 10,676 28,080 3,469 24,692 Cash flows from investment activities Share capital increase of subsidiary 6.4 0 0 (1,500) (9,000) Purchases of tangible fixed assets (20,716) (13,774) (5,165) (7,269) Purchases of intangible assets (205) (438) (205) (438) Receipts from sale of tangible and intangible assets 212 20 23 20 Interest received 6.23 741 263 711 251 Dividend receivables 6.23 0 150 0 150 Net cash flows from investment activities (19,968) (13,779) (6,136) (16,287) Cash flows from financing activities Proceeds from share capital increase 6.11.1 0 239 0 223 Receipts from issued/collected loans 6.15-6.33 28,900 10,896 28,000 7,000 Payment of loans 6.33 (16,872) (4,832) (15,075) (4,361) Interest and financial expenses paid 6.23 (1,917) (1,682) (1,642) (1,500) Dividends payable 6.31 (1,766) (1,766) (1,766) (1,766) Payments for Lease Liabilities (732) (552) (379) (277) Net Cash flows from financing activities 7,613 2,302 9,138 (681) Net increase / (decrease) in cash and cash equivalents (1,679) 16,602 6,471 7,724 Cash and cash equivalents at the beginning of the period 39,955 23,772 24,418 16,694 Effect from foreign exchange differences 140 (419) 0 0 Cash and cash equivalents at the end of the period 38,416 39,955 30,889 24,418 The accompanying notes constitute an inseparable part of the financial statements. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 193 1. General Information on the Company and Group The Group operates in the sector of producing flexible plastic packaging items mainly for the food industry but also for other advanced special applications. The Company “FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY” (hereafter mentioned as “the Company” or “FLEXOPACK”) is specifically active in the production of flexible plastic packaging materials that broadly appeal to many sectors, the most important of which is the food packaging sector. The Company has developed advanced know-how in the production of multiple layer packing films, holding the leading position in the Greek market as the competition comes from a limited number of companies that are active abroad. The Company was initially established as a General Partnership in 1979 in Koropi Attica. In 1998 it is converted from a General Partnership to a Société Anonyme, its current form, under the corporate name “FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY”, according to L. 1297/1972 and C.L. 2190/1920 (Gov. Gazette 11/5.1.1989, S.A. and L.T.D. issue). The company’s base (constitutive and administrative) is located at the Municipality of Koropi Attica, at the location Tzima (Postal Code 194 00, tel.: + 30 210 6680000) and is registered in the General Commercial Registry with GEMI number 582101000. The duration of the Company is indefinite. The Company’s building facilities are located at the Tzima position in Koropi Attica, in two self-owned plots with a total area of 29,432 sq. m. The total useful area of the building facilities amounts to 25,700 sq.m.. The Company within the year 2020 proceeded to the purchase of three land plots which are adjacent to its existing facilities in Tzima Location of the Municipality of Kropia, with a total area of 14,160 sq.m., in order to proceed in the future with the construction of an industrial building to expand its production facilities. After the above purchases, the total area of land plots of the company amount to 43,592 sq.m.. From September 1995, the Company operates and is a holder of the ISO 9001 quality assurance certificate for research, development, production, distribution and technical support of its products. The aforementioned certificate has been granted to the Company from the company Βureau Veritas. In April 2003 the Company was certified with the new hygiene standard, the British Retail Consortium (BRC). This standard – with pan European recognition – introduces very high hygiene, products security and quality demands. In August 2022, the Company was certified with the ISO 50001:2018 energy management system. By this manner, the Company aims at the adoption and implementation of the required procedures that will lead to optimal energy utilization and performance. The Company’s shares are listed and traded on the Athens Exchange from April 1996 (OASIS Code: ΦΛΕΞΟ). The Annual Consolidated and Separate Financial Statements of 31 st December 2024 and of the fiscal year ended on that date, were approved for release by a decision of the Board of Directors on 28 April 2025, while they are subject to the final approval of the Ordinary General Meeting of Shareholders of FLEXOPACK SA. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 194 2. Basis for the preparation of the financial statements The consolidated and separate financial statements of FLEXOPACK PLASTICS SA of December 31 st 2024 covering the period from January 1st up to December 31 st 2024 have been prepared in accordance withthe International Financial Reporting Standards (IFRS), as such have been adopted by the European Union. Also, the financial statements have been prepared based on a) the historic cost principle apart from the Provision for personnel indemnities, derivative financial instruments and stock options where the valuation was made at fair and b) the going concern principle. The consolidated Financial statements of the Company include the Financial statements of the parent Company FLEXOPACK PLASTICS SA, as well as those of its subsidiaries mentioned in the following section 3.1.1 Group Structure and methods of companies’ consolidation. The Financial statements are expressed in thousand euro. It is noted that any differences in summations of the accompanying financial statements and analysis are due to rounding. The accounting principles, based on which the accompanying financial statements have been prepared and which the Group applies systematically, are consistent with those applied in the previous financial year. 2.1 Adoption of New and Revised International Standards New Standards, Interpretations, Revisions and Amendments to existing Standards that are effective and have been adopted by the European Union The following new Standards, Interpretations and amendments of IFRSs have been issued by the International Accounting Standards Board (IASB), are adopted by the European Union, and their application is mandatory from or after 01/01/2024. Amendments to IFRS 16 “Leases: Lease Liability in a Sale and Leaseback” (effective for annual periods starting on or after 01/01/2024) In September 2022, the IASB issued narrow-scope amendments to IFRS 16 “Leases” which add to requirements explaining how a company accounts for a sale and leaseback after the date of the transaction. A sale and leaseback is a transaction for which a company sells an asset and leases that same asset back for a period of time from the new owner. IFRS 16 includes requirements on how to account for a sale and leaseback at the date the transaction takes place. However, IFRS 16 includes no specific subsequent measurement requirements for the transaction, specifically where some or all the lease payments are variable lease payments that do not depend on an index or rate. The issued amendments add to the sale and leaseback requirements in IFRS 16, thereby supporting the consistent application of the Accounting Standard. These amendments will not change the accounting for leases other than those arising in a sale and leaseback transaction. The amendments do not affect the consolidated Financial Statements. The above have been adopted by the European Union with effective date of 01/01/2024. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 195 Amendments to IAS 1 “Classification of Liabilities as Current or Non-current” (effective for annual periods starting on or after 01/01/2024) The amendments clarify the principles of IAS 1 for the classification of liabilities as either current or non- current. The amendments clarify that an entity’s right to defer settlement must exist at the end of the reporting period. The classification is not affected by management’s intentions or the counterparty’s option to settle the liability by transfer of the entity’s own equity instruments. Also, the amendments clarify that only covenants with which an entity must comply on or before the reporting date will affect a liability’s classification. The amendments require a company to disclose information about these covenants in the notes to the financial statements. The amendments are effective for annual reporting periods beginning on or after 1 January 2024, with early adoption permitted. The amendments do not affect the consolidated Financial Statements. The above have been adopted by the European Union with effective date of 01/01/2024. Amendments to IAS 7 “Statement of Cash Flows” and IFRS 7 “Financial Instruments: Disclosures”: Supplier Finance Arrangements (effective for annual periods starting on or after 01/01/2024) In May 2023, the International Accounting Standards Board (IASB) issued Supplier Finance Arrangements, which amended IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures. The new amendments require an entity to provide additional disclosures about its supplier finance arrangements. The amendments require additional disclosures that complement the existing disclosures in these two standards. They require entities to provide users of financial statements with information that enable them a) to assess how supplier finance arrangements affect an entity’s liabilities and cash flows and b) to understand the effect of supplier finance arrangements on an entity’s exposure to liquidity risk and how the entity might be affected if the arrangements were no longer available to it. The amendments to IAS 7 and IFRS 7 are effective for accounting periods on or after 1 January 2024. The amendments do not affect the consolidated Financial Statements. The above have been adopted by the European Union with effective date of 01/01/2024. New Standards, Interpretations, Revisions and Amendments to existing Standards that have not been applied yet or have not been adopted by the European Union The following new Standards, Interpretations and amendments of IFRSs have been issued by the International Accounting Standards Board (IASB), but their application has not started yet or they have not been adopted by the European Union. Amendments to IAS 21 “The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability” (effective for annual periods starting on or after 01/01/2025) In August 2023, the International Accounting Standards Board (IASB) issued amendments to IAS 21. The Effects of Changes in Foreign Exchange Rates that require entities to provide more useful information in their financial statements when a currency cannot be exchanged into another currency. The amendments introduce a definition of currency exchangeability and the process by which an entity should assess this exchangeability. In addition, the amendments provide guidance on how an entity should estimate a spot exchange rate in cases where a currency is not exchangeable and require additional disclosures in cases FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 196 where an entity has estimated a spot exchange rate due to a lack of exchangeability. The amendments to IAS 21 are effective for accounting periods on or after 1 January 2025. The Group will examine the impact of the above on its Financial Statements, though it is not expected to have any. The above have been adopted by the European Union with effective date of 01/01/2025. IFRS 9 & IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments” (effective for annual periods starting on or after 01/01/2026) In May 2024, the International Accounting Standards Board (IASB) issued amendments to the Classification and Measurement of Financial Instruments which amended IFRS 9 “Financial Instruments” and IFRS 7 “Financial Instruments: Disclosures”. Specifically, the new amendments clarify when a financial liability should be derecognized when it is settled by electronic payment. Also, the amendments provide additional guidance for assessing contractual cash flow characteristics to financial assets with features related to ESG-linked features (environmental, social, and governance). IASB amended disclosure requirements relating to investments in equity instruments designated at fair value through other comprehensive income and added disclosure requirements for financial instruments with contingent features that do not relate directly to basic lending risks and costs. The amendments are effective from annual reporting periods beginning on or after 1 January 2026. The Group will examine the impact of the above on its Financial Statements, though it is not expected to have any. The above have not been adopted by the European Union Annual Improvements to IFRS Standards-Volume 11 (effective for annual periods starting on or after 01/01/2026) In July 2024, the IASB issued the Annual Improvements to IFRS Accounting Standards-Volume 11 addressing minor amendments to the following Standards: IFRS 1 ‘First-time Adoption of International Financial Reporting Standards’, IFRS 7 ‘Financial Instruments: Disclosures’, IFRS 9 ‘Financial Instruments’: IFRS 10 ‘Consolidated Financial Statements’, and IAS 7 ‘Statement of Cash Flows’. The amendments are effective for accounting periods on or after 1 January 2026. The Group will examine the impact of the above on its Financial Statements, though it is not expected to have any. The above have not been adopted by the European Union. Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity” (effective for annual periods starting on or after 01/01/2026) On 18 December 2024 the International Accounting Standards Board (IASB) issued amendments to IFRS 9 “Financial Instruments” and IFRS 7 “Financial Instruments: Disclosures” to help companies better report the financial effects of nature-dependent electricity contracts, which are often structured as power purchase agreements (PPAs). Nature-dependent electricity contracts help companies to secure their electricity supply from sources such as wind and solar power. The amount of electricity generated under these contracts can vary based on uncontrollable factors such as weather conditions. The amendments allow companies to better reflect these contracts in the financial statements, by a) clarifying the application of the ‘own-use’ requirements, b) permitting hedge accounting if these contracts are used as hedging instruments and c) adding new disclosure requirements to enable investors to understand the effect of these contracts on a company’s financial performance and cash flows. The amendments are effective for accounting periods on or after 1 January 2026, with early application permitted. The Group FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 197 will examine the impact of the above on its Financial Statements, though it is not expected to have any. The above have not been adopted by the European Union. IFRS 18 “Presentation and Disclosure in Financial Statements” (effective for annual periods starting on or after 01/01/2027) In April 2024 the International Accounting Standards Board (IASB) issued a new standard, IFRS 18, which replaces IAS 1 ‘Presentation of Financial Statements’. The objective of the Standard is to improve how information is communicated in an entity’s financial statements, particularly in the statement of profit or loss and in its notes to the financial statements. Specifically, the Standard will improve the quality of financial reporting due to a) the requirement of defined subtotals in the statement of profit or loss, b) the requirement of the disclosure about management-defined performance measures and c) the new principles for aggregation and disaggregation of information. The Group will examine the impact of the above on its Financial Statements, though it is not expected to have any. The above have not been adopted by the European Union. IFRS 19 “Subsidiaries without Public Accountability: Disclosures” (effective for annual periods starting on or after 01/01/2027) In May 2024 the International Accounting Standards Board issued a new standard, IFRS 19 “Subsidiaries without Public Accountability: Disclosures”. The new standard allows eligible entities to elect to apply IFRS 19 reduced disclosure requirements instead of the disclosure requirements set out in other IFRS. IFRS 19 works alongside other IFRS, with eligible subsidiaries applying the measurement, recognition and presentation requirements set out in other IFRS and the reduced disclosures outlined in IFRS 19. This simplifies the preparation of IFRS financial statements for the subsidiaries that are in-scope of this standard while maintaining at the same time the usefulness of those financial statements for their users. IFRS 19 is effective from annual reporting periods beginning on or after 1 January 2027, with early adoption permitted. The Group will examine the impact of the above on its Financial Statements, though it is not expected to have any. The above have not been adopted by the European Union. 2.2 Significant accounting judgments, estimations and assumptions The preparation of financial statements according to IFRS requires management to make decisions, perform estimations and use assumptions that affect the amounts presented in the financial statements, the assets, liabilities, as well as the disclosure of contingent assets and liabilities during the preparation date of the financial statements and the published income and expenses amounts for the reporting period. The actual results may differ from such estimations. Estimations and judgments by the Management are continuously evaluated and are based on empirical data and other factors, such as expectations for future events considered probable under specific conditions. Specific amounts which are included or affect the financial statements, and the relevant disclosures, must be estimated. During the estimations, assumptions must be created as regards to the values or conditions that cannot be known with certainty during the preparation period of the financial statements. An important accounting estimation is considered as one that is important for the depiction of the company’s financial position and results and demands the most difficult, subjective or complicated judgments by FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 198 management, often as a result of the need to create estimations regarding the effect of assumptions which are uncertain. The Group evaluates such estimations on a constant basis, based on the results of the past and based on experience, meetings with specialists, trends and other methods that are considered appropriate under the specific circumstances. The significant accounting judgments, estimations and assumptions that refer to data, the evolution of which could affect the financial statements’ accounts, are the following. Estimated impairment of the value of investments in subsidiaries and associates The Group, with the exception of goodwill which is being tested for impairment on annual basis, performs the relevant impairment audit of its investments’ value when events or conditions increase the probability of such impairment. The recovered amounts of the cash flow generating units have been estimated according to the calculations of the value in use. For the calculation of the value in use, the estimated future cash flows are discounted into present value with the use of a discount factor. The determination of the future flows is performed after in-depth analysis and estimates by the management with regard to the level of future profitability as well as the assessment of the existing conditions in the market. The basic assumptions which are being utilized are related to the following factors: Discount rate, levels of sales in the next 5-year period, gross profit margin and growth rate after the 5-year period. The above calculations require the use of estimates. Useful life of tangible fixed assets Fixed assets are being depreciated along their estimated economic life. The Management makes certain estimations regarding the useful life of depreciated fixed assets. Provisions for impairment of trade receivables The Group makes provisions for doubtful receivables in relation to certain customers when there is evidence or when there are certain elements which indicate that the cash collection with regard to a particular claim is not likely to occur. The Management of the Group proceeds with a periodical reassessment of the adequacy of the provision regarding the doubtful receivables in relation to its credit policy and according to the data of the Group’s Legal Department. These data derive from the processing of historical information and from recent developments concerning cases under examination. Estimates of expected credit losses on trade receivables The provision is based on a table that calculates the expected credit losses throughout the lifetime of the Group's receivables. This table is based on past evidence but it is adjusted to reflect expectations for the future financial conditions of customers as well as of the economic environment. At each balance sheet date, the historical rates are updated and estimates of future financial conditions are reviewed and analyzed. The correlation between historical data, future financial conditions and expected credit losses involves the performance of significant estimates. The amount of expected credit losses depends to a large extent on changes in conditions and forecasts of the future economic environment. In addition, past evidence as FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 199 well as forecasts made for the future economic conditions may not lead to conclusions indicative of the actual amount of customer defaults in the future. Income taxes of tax un-audited financial years The provision for income tax requires judgment and is calculated by estimating the taxes that will be paid to the tax authorities. There are many transactions and calculations which render the final determination of the tax uncertain. The Company recognizes liabilities from expected tax audits, based on estimates of whether or not additional taxes will be imposed. If the final outcome of the audit is different from the initially recognized, then the difference will affect the income tax of the period. Recovery of deferred tax receivables A deferred tax receivable is recognized for unutilized tax losses to the extent that there will be sufficient taxable earnings in future in order to be offset with these tax losses. For the determination of the amount of the deferred tax receivable which may be recognized there is the requirement of judgments and estimations that must be made by the Group’s Management. These are based on the future taxable earnings in combination with the tax policies that will be followed in the future. Obsolescence of inventories Appropriate provisions are being performed for obsolete and useless inventories whenever it is deemed appropriate and necessary. The reductions of the inventory value at the net liquidation value and the other losses from the inventories are recorded in the statement of results during the period when they appear. Issues related to climate change The Group considers issues related to climate change in its accounting estimates and assumptions. Although the Group considers that its business model and services will continue to be sustainable after the transition to a low-emission economy, climate-related issues might increase uncertainty in estimates and assumptions across various items of the financial statements (such as concerning the estimation of the economic life of non-financial assets and the impairment of tangible assets), etc. 3. Material accounting principles The accounting principles on the basis of which the attached Financial Statements have been prepared and which the Group deems material are listed below. 3.1 Consolidation Subsidiaries All companies that are managed or controlled, directly or indirectly, by another company (parent) either through the holding of majority voting rights in the undertaking or, in the case where there is no majority shareholding, through agreement of the Company with the other shareholders in the undertaking. That is to FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 200 say that subsidiaries are companies in which control is exercised by the parent. Subsidiaries are consolidated completely (full consolidation) with the purchase method from the date that control over them is acquired and cease to be consolidated from the date that this control no longer exists. The acquisition cost of a subsidiary is the fair value of the assets given as consideration, the shares issued and the liabilities undertaken on the date of the acquisition plus any costs directly associated with the transaction. The acquisition cost over and above the fair value of the individual assets acquired is booked as goodwill. If the total cost of the acquisition is lower than the fair value of the individual assets acquired, the difference is immediately booked directly in the results. Inter-company transactions, balances and unrealized profits from transactions between Group companies are written-off. Unrealized losses are also eliminated except if the transaction provides indication of impairment of the transferred asset. The participations in subsidiaries, are measured at acquisition cost minus any impairment losses in the Company’s financial statements. The accounting principles of subsidiaries have been adjusted when deemed necessary in order to ensure consistency with the accounting principles adopted by the Group. The preparation date of the financial statements of subsidiaries coincides with that of the parent Company. Non-controlling interests represents the percentage of profit or loss and equity that don’t correspond to the Group and are presented separately in the consolidated income statements as well as in a separate line in equity in the consolidated statement of Financial Position. Associate companies Associates are companies on which the Group can exercise significant influence but not control. The assumptions used by the group imply that a holding of between 20% and 50% of a company’s voting rights suggests significant influence on the company. In the Financial statements of the Company, investments in associates are measured at acquisition cost minus impairment losses, while in the consolidated financial statements associates are consolidated with the equity method. The Group’s share in the profit or losses of associate companies after the acquisition is recognized in the results, while the share of changes in reserves after the acquisition is recognized in reserves. When the Group’s share in the losses of an associate is equal or larger than its participation in the associate, including any other doubtful debts, the Group does not recognize any further losses, except if it has covered liabilities or made payments on behalf of the associate company. Unrealized profits from transactions between the Group and its associates are eliminated according to the percentage of the Group’s holding in the associates. The accounting principles of the associates have been amended so as to conform to those adopted by the Group. 3.1.1 Structure of the Group and consolidation method of companies The Group’s companies with the respective addresses, and percentages by which the Group participates in their share capital, as well as the respective consolidation method in the consolidated financial statements, are presented below. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 201 Name Domicile Activity % Participation 31/12/2024 % Participation 31/12/2023 Type of Participation Relationship that dictated the consolidation Year of Acquisition - Establishment Subsidiary Companies via Full Consolidation Method FLEXOPACK SA Koropi - Attica Production - Flexible plastic packaging Parent Parent FLEXOPACK POLSKA Sp. Zo.o Malbork Poland Production - Flexible plastic packaging 100 100 Direct The participation percentage 2007 FLEXOPACK TRADE AND SERVICES DOO BEOGRAD Belgrade Serbia Trading - Flexible plastic packaging 100 100 Direct The participation percentage 2010 FLEXOPACK INTERNATIONAL LIMITED Larnaca Cyprus Holding company 100 100 Direct The participation percentage 2014 FLEXOPACK PTY LTD Brisbane Australia Trading - Manufacturing Flexible plastic packaging 100 100 Indirect The participation percentage 2014 FLEXOPACK ΝΖ LIMITED Auckland New Zealand Trading - Flexible plastic packaging 100 100 Indirect The participation percentage 2016 FLEXOPACK TRADE AND SERVICES UK LIMITED Norwich England Trading - Flexible plastic packaging 100 100 Indirect The participation percentage 2014 FLEXOPACK PROPERTIES PTY LTD Brisbane Australia Property portfolio 100 100 Indirect The participation percentage 2017 FLEXOPACK FRANCE LIMITED Lyon France Trading - Flexible plastic packaging 100 100 Indirect The participation percentage 2018 FLEXOPACK USA, Inc Delaware-USA Trading - Flexible plastic packaging 100 100 Indirect The participation percentage 2020 FLEXOPACK IRELAND LIMITED Dublin-Ireland Trading - Flexible plastic packaging 100 100 Indirect The participation percentage 2021 FLEXOPACK DENMARK ApS Copenhagen- Denmark Trading - Flexible plastic packaging - 100 Indirect The participation percentage 2021 Subsidiaries "FLEXOPACK PTY LTD", "FLEXOPACK PROPERTIES PTY LTD", "FLEXOPACK TRADE AND SERVICES UK LIMITED", "FLEXOPACK FRANCE", "FLEXOPACK USA Inc.", "FLEXOPACK IRELAND LIMITED" and "FLEXOPAC DENMARK ApS" are fully controlled from the Cypriot subsidiary “FLEXOPACK INTERNATIONAL LIMITED” which is fully owned (100%) by the parent company "FLEXOPACK PLASTICS SA". Subsidiary company ”FLEXOPACK ΝΖ LIMITED’ is fully controlled by “FLEXOPACK PTY LTD”. It is noted that FLEXOPACK DENMARK was dissolved in July 2024, as it never had any activity, due to the fact that the Danish market has been served by the Group’s subsidiary company in Poland, i.e. FLEXOPACK POSKA. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Associate Companies via Equity Consolidation Method Name Domicile Activity % Participation 31/12/2024 % Participation 31/12/2023 Year of Type of Acquisition - Participation Establishment VLACHOU BROS SA Koropi - Attica Production - Flexible plastic packaging 47.71 47.71 Direct 2001 ΙΝΟVA PLASTICS SA Thiva Production - Rigid plastic packaging 50.00 50.00 Direct 2001 3.2 Operation and presentation currency and foreign currency translation Euro is the Group’s and Company’s presentation and operation currency. Foreign exchange transactions are translated to euro based on the exchange rates in effect at the transaction dates. At the date when the financial statements are prepared, receivables and liabilities in foreign currency are translated in order to reflect the foreign exchange rates at the balance sheet date. Profit and losses deriving from transactions in foreign currencies as well as from the valuation of foreign currency units at the end of the year are included in the income statement, with the exclusion of transactions that fulfill the conditions of cash flow hedging, which are depicted in the statement of comprehensive income. The operating currency of the foreign subsidiaries is also the official currency of the country which each company operates in. For foreign subsidiaries which do not operate in the euro area, the conversion of their financial statements will be as follows. Assets and liabilities are translated with the exchange rates in effect during the date of the statement of Financial Position. Equity is translated with the exchange rates in effect during the dates when such resulted. Income and expenses are translated with the average exchange rate during the period. The resulting foreign exchange differences from the above translation are registered in the statement of comprehensive income until the sale, write-off of a subsidiary, when such are transferred to the results for the year. 3.3 Tangible fixed assets Tangible fixed assets are reported in the financial statements at acquisition cost, less accumulated depreciations and any accumulated impairment losses. The acquisition cost includes all the directly attributable expenses for the acquisition of the assets. Subsequent expenditure is added to the carrying value of the assets or is booked as a separate asset only if it is probable that future economic benefits will flow to the Group and their cost can be accurately measured. The cost of repairs and maintenance is booked in the results when such are realized. Tangible assets under construction include fixed assets under construction and are presented at cost. Tangible assets under construction are not depreciated until the asset is completed and ready for its intended productive operation. Land is not depreciated. Depreciation of other tangible fixed assets is calculated using the straight line st st Annual Financial Report of financial year 2024 (January 1 – December 31 2024) 202 Amounts in thousands euro FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 203 method over their useful lives, as follows: • Buildings: 25-50 years • Mechanical equipment: 8-15 years • Vehicles: 5-10 years • Other equipment: 3-10 years Upon sale of tangible fixed assets, any difference between the proceeds and the carrying value are booked as profit or loss in the results. 3.4 Goodwill Goodwill is the difference between acquisition cost and the net assets that were acquired during the acquisition date of the subsidiary company. The resulting acquisition expenses are accounted for in expenses. The Company during the acquisition date recognizes the goodwill that resulted from the acquisition, presenting such as an asset at cost. Following initial recognition, goodwill is valued at acquisition cost less the cumulative losses due to impairment. Goodwill is not amortized however it is reviewed annually for any impairment, or even more frequently if there are events that indicate loss. Impairment losses related to goodwill cannot be reversed in subsequent periods. In the case where the fair value of equity during the acquisition date of a company is larger than the price paid for its acquisition then a negative goodwill (income) is recorded directly as income in the income statement. 3.5 Intangible assets Intangible assets are presented in the financial statements at acquisition cost minus accumulated amortization and any accumulated impairment losses. Amortization is calculated with the straight line method through the duration of their useful economic life. Intangible assets comprise know-how rights, patents, cost for the development of new products and software licenses. a) Know-how rights concern the purchase of a patent right and of all the applications of the patent of the patent right group based on the “multiple layer heat-shrinkable packing film”, with all the rights and obligations stemming thereof. The initial recognition of the intangible asset has been done at cost (contractual consideration for purchase) which is reduced on an annual basis through amortization. The useful life of the intangible asset has been estimated by the Management at 20 years. It is noted that this right may become the object of a trade in the future. b) Cost for the development of patents related to various products such as multiple-layer packing film, which are exported to various countries and amortized based on their useful life as this is estimated by Management at 20 years. The initial recognition is made at acquisition cost which is reduced annually through amortization. c) Expenses related directly to research, which includes the cost of raw materials used. The cost of in-house research of products is recognized as an intangible asset. Until the completion of the research, assets are subject to impairment reviews. Amortization begins with the completion of the asset and is calculated based on the straight line method. The useful life of the above intangibles is estimated by Management at 10 years. The expenses related to research activities are recognized as expenses during the period. Expenses realized FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 204 during the research phase of a new product are recognized as intangible assets if the following are met: • the technical viability of the under development product for internal use or sale may be proven. • the intangible asset will create potential future benefits from the internal use or sale. • there are adequate and available technical, economic and other resources for the completion of its development and • the value of intangible asset may be reliably estimated. d) Software: Software licenses are valued at acquisition cost less amortization. Amortization is effected using the straight line method throughout the useful life of these assets which ranges from 1 to 10 years. 3.6 Impairment of Assets The Group examines at each date of the annual financial statements whether and to what extent there are indications that the value of an asset may be impaired. Apart from goodwill and intangible assets with an indefinite economic life, which are reviewed for impairment annually, the carrying values of other assets are subject to an impairment review when events or changing conditions imply that their carrying value may not be recoverable. The impairment loss of an asset is recorded as an expense in the income statement when the net book value of the asset is higher than its recoverable value. The recoverable value is defined as the highest between the fair value less the cost of sale and the value in use of the asset. Fair value less the cost of sale is the amount that can be received from the sale of an asset in the context of a bilateral agreement where both parties have full knowledge and proceed on their own will, after the deduction of any additional direct cost for the sale of the asset. Value in use is the present value of the estimated future cash flows expected to be generated as result of the asset’s constant use and sale at the end of its useful life. For the purposes of determining the impairment, assets are grouped at the lowest possible level for which separate cash flows can be determined. 3.7 Trade receivables and other receivables The trade and other receivables are initially recognized at fair value and in a later stage are valued at their net cost, after the deduction of any impairment losses. The impairment losses are recognized whenever there is objective evidence that the Group is not in position to collect the entire amounts which are due according to the contractual terms. The amount of impairment is the difference between the book value of the receivables and the present value of the estimated future cash flows. Regarding the provision for expected credit losses, the Group applies the simplified approach of IFRS 9 by measuring the loss provision at an amount equal to the expected lifetime credit losses for all trade receivables and other receivables from customer contracts. The amount of the provision is recorded as an expense in the statement of results. 3.8 Inventories Inventories include raw and auxiliary materials, packaging items, consumables, spare parts, finished and semi-finished products and merchandise as well as purchases of inventory under collection. The cost of inventories includes all the purchasing and manufacturing expenses as well as the expenses that were realized in order to render the inventory at its current position and condition. The cost of inventories does not include financial expenses. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 205 At the balance sheet date, inventories are valued at the lower of acquisition cost and net realizable value. Net realizable value is the estimated sales price during the normal course of business of the company less any relevant sales expenses. The cost of inventories is defined by the weighted average method. With regard to obsolete and scrap inventory, relevant provisions are formed and the corresponding losses are recorded in the statement of income during the period they arise. 3.9 Cash & cash equivalents Cash and cash equivalents include cash in the bank and in hand as well as short term time deposits. Cash & cash equivalents have negligible market risk. 3.10 Suppliers and related liabilities The trade liabilities are initially recognized at fair value and in later stage are being valued according to the net cost method via the utilization of the effective interest rate. 3.11 Financial Assets and Financial Liabilities Initial recognition and subsequent measurement of financial assets As of 1 January 2019, in accordance with IFRS 9, the following two items are used as the basis for the classification of financial assets. (a) the concept of an entity's business model for the management of financial assets as determined by key management personnel (in accordance with the definitions in IAS 24); and (b) the characteristics of the contractual cash flows of the financial asset. Each financial asset is classified into one of three categories: (a) at amortized cost, when it is withheld for the purpose of collecting conventional cash flows on specific dates consisting of the repayment of capital and interest. (b) at fair value through other comprehensive income, when it is withheld for the purpose of collecting conventional cash flows or for the purpose of selling it. (c) at fair value through profit or loss, provided that it does not fall into any of the above two categories. Financial assets recognized at amortized cost are subsequently measured using the effective interest method and are tested for impairment. Profits and losses are recognized in profit or loss when the asset ceases to be recognized, modified or impaired. Financial assets of the Group and the Company that are valued at amortized cost include customer receivables and other receivables. The Group and the Company as at 31/12/2024 did not hold financial assets measured at fair value through other comprehensive income measured at fair value through profit or loss. Impairment of financial assets The Group and the Company assess, at each reporting date, whether the value of a financial asset or a group of financial assets has been impaired as follows: FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 206 A provision for impairment against expected credit losses for all financial assets that are not measured at fair value through profit or loss is recognized. Expected credit losses are based on the difference between all contractual cash flows payable under the contract and all cash flows that the Group or the Company expects to receive, discounted at the approximate original effective interest rate. For corporate receivables and other receivables, the Group and the Company apply the simplified approach for calculating the expected credit losses, i.e. at each reporting date, measure the provision for a financial instrument for an amount equal to the expected credit loss, throughout their life without monitoring the changes in credit risk. Derecognition of financial assets A financial asset (or part of a financial asset or part of a group of similar financial assets) is derecognized when: - the rights to the inflow of cash resources have expired -The Group or the Company retains the right to receive cash flows from that asset but has also undertaken to pay them to third parties in full without undue delay in the form of a transfer agreement; -The Group or the Company has transferred the right to receive cash flows from that asset while either (a) it has transferred substantially all the risks and rewards thereof or (b) has not transferred substantially all the risks and rewards , but has passed the control of that item. Initial recognition and subsequent measurement of financial liabilities Financial liabilities may be classified into two categories: (a) Financial liabilities measured at fair value through profit or loss, and (b) Financial liabilities measured at amortized cost. They are initially measured at their fair value less the cost of trade, in the case of loans and payables. Financial liabilities of the Group and the Company consist of bank loans, liabilities to suppliers and related liabilities and subsequently from initial recognition are measured at amortized cost using the effective interest method. Derecognition of financial liabilities A financial liability is derecognized when the commitment resulting from the obligation is canceled or expires. When an existing Financial Liability is replaced by another by the same Lender but under substantially different terms or the terms of an existing liability are substantially amended, such exchange or amendment is treated as a derecognition of the original liability and recognition of a new liability. The difference in the respective book values is recognized in the income statement. Offsetting of financial receivables and liabilities Financial assets and liabilities are offset and the net amount is reflected in the statement of Financial Position only when the Group or the Company legally holds that right and intends to offset them on a net basis with each other or to claim the asset and settle the obligation at the same time. The statutory right should not depend on future events and should be capable of being executed in the normal course of business and in the event of default, insolvency or bankruptcy of the company or the counterparty. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 207 3.12 Financial Derivatives The financial derivatives are initially recorded at fair value during the transaction date and subsequently are valued at fair value. Changes in fair value are recorded in the results unless hedge accounting is applied. The fair value of financial derivatives is defined by the price of such in an active market, or by using valuation techniques in cases where there is no active market for such instruments. Derivatives are classified as financial assets when their fair value is positive and as financial liabilities when their fair value is negative. The gains or losses resulting from changes in the fair value of derivatives are accounted for directly in the statement of results, except for the effective part of the cash flow hedging, which is recognized in the statement of other comprehensive income and then it is transferred to the results of the year when the prospective transaction is finally recognized in the statement of results. For the purposes of hedge accounting, the hedging actions are classified as follows: • Hedging of fair value, when the risk is adjusted to changes in the fair value of an asset or liability or an unrecognized corporate commitment. • Cash flow hedging when the risk of cash flow variability is adjusted in relation to a recognized asset or liability, or in relation to an extremely probable transaction. • Hedging for net investment in foreign subsidiaries. During the initial recognition of the transaction, the Group shall record in detail the relationship between the hedging and the hedged item, as well as the purpose and the risk management strategy that is served through the agreement of the hedging. The documentation includes the determination of the hedging and the hedged item or transaction, the nature of the risk that is being hedged and the way in which the company will evaluate the effectiveness of the changes at fair value of the hedging instrument for the offset of the risk due to changes in the fair value of the hedged item, meaning the cash flows relating to the hedged risk. These compensations are expected to be extremely effective in achieving offsetting changes in fair value or cash flows and are constantly being assessed to determine their effectiveness throughout the years for which they have been set. The fair value of a derivative as a hedging instrument is recorded either as a non-current asset or as a long-term liability, when the remainder of the period until maturity is greater than 12 months, or as an asset or short-term liability if the remainder of the period until maturity is less than 12 months. 3.13 Share capital The share capital depicts the nominal value of the common shares issued and outstanding. The price paid above nominal value per share is recorded in the account “Share Premium” in Equity. Direct expenses paid for the issuance of new shares or rights are recorded in equity as a deduction from the amounts of the issue. 3.14 Loans Loans are initially recognized at cost, namely at the fair value of the amount received, less any possible direct costs for the realization of the transaction. Subsequently, loans are valued at net book cost based on FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 208 the effective interest rate method. The borrowing cost is recognized in the results of the period when such is realized. Borrowing cost that is directly linked to the purchase or construction of an asset, which requires a significant period in order to render such ready for use, is capitalized as part of the asset’s acquisition cost. From the beginning of the fixed asset’s production operation and after, the loan’s interest are charged in the results. Loan liabilities are classified as short-term except for the cases where the Group has the right to postpone the payment of the liability for at least 12 months after the date of the annual financial statements. 3.15 Income tax (Current and deferred) The period’s charge for income tax consists of the current tax and the deferred taxes, i.e. the tax charges or tax credits that are associated with economic benefits accruing in the period but which have been or will be assessed by the tax authorities in different periods. The income expense stands for the sum of the currently payable tax and the deferred tax, plus any additional tax from previous years’ tax audit. The tax burden of the current year is based on the year’s taxable profit. The taxable profit differs from the net accounting profit appearing in the results since it excludes income or expenses which are taxed or which are tax deductible in other years and since also it excludes items which are never being taxed or being tax deductible. The tax is calculated according to the effective tax rates or those which have been enforced at the date of the Statement of the Financial Position. Deferred income tax is determined according to the liability method which results from the temporary differences between the book value and the tax base of assets and liabilities. Deferred tax assets and liabilities are valued based on the tax rates that are expected to be in effect during the period in which the asset or liability will be settled, taking into consideration the tax rates (and tax laws) that have been put into effect or are essentially in effect up during the date of the annual financial statements. Deferred tax assets are recognized to the extent that there will be a future tax profit to be set against the temporary difference that creates the deferred tax asset. The Group proceeds with offsetting entries between tax receivables and tax liabilities whenever there is a legally applicable right for such action as well as whenever the deferred tax receivables and tax liabilities concern taxable income imposed by the same tax authority. 3.16 Employee benefits Short-term benefits Short-term employee benefits (except post-employment benefits) monetary and in kind are recognized as an expense when they accrue. Any unpaid amount is booked as a liability, while in the case where the amount paid exceeds the amount of services rendered, the company recognizes the excess amount as an asset (prepaid expense) only to the extent that the prepayment will lead to a reduction of future payments or to reimbursement. Post-employment Benefits According to Law 2112/20, the Company pays to employees a compensation as a lump sum due to retirement or dismissal. The level of the paid indemnity depends on the years of service, the level of FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 209 remuneration and whether it is due to retirement or dismissal. In Greece, the indemnity payable in the case of retirement equals with 40% of the indemnity that would be payable in case of dismissal. The relevant liability for employee indemnities recorded in the annual financial statements is the present value of the commitment for the defined benefit less the changes deriving from the non-recognized actuarial profit and loss and the service cost. The commitment for the defined benefit is calculated by an independent actuarial officer with the use of the projected unit credit method. The liability is defined by taking into consideration several parameters such as age, service years, salary and specific obligations for paid benefits. The provisions corresponding to the current financial year are recorded in the statement of comprehensive income. 3.17 Government Grants The Group recognizes the government grants that cumulatively satisfy the following criteria: (a) There is reasonable certainty that the company has complied or will comply with the conditions of the grant and (b) it is certain that the amount of the grant will be received. They are booked at fair value and are systematically recognized as revenue according to the principle of matching the grants with the corresponding costs that they are subsidizing. Grants that relate to assets are included in long-term liabilities as deferred income and are recognized systematically and rationally as revenue over the useful life of the fixed asset. Amortization of grants is presented in “Other operating income” in the Income Statement. 3.18 Provisions for contingent claims-liabilities Provisions constitute liabilities of uncertain time frame or amount. Provisions are recognized when the Group has present obligations (legal or constructive) as a result of past events, their settlement through an outflow of resources is probable and the exact amount of the obligation can be reliably estimated. Provisions are reviewed at the end of each reporting period so that they may reflect the present value of the outflow that is expected to be required for the settlement of the obligation. The provisions may differ from the possible liabilities which unlike the forecasts are not certain to be verified in the future nor can their amount be reliably measured. Contingent liabilities are not recognized in the financial statements but are disclosed, except if the probability that there will be an outflow of resources is very small. 3.19 Recognition of income Income includes the fair value of goods and services sold, net of Value Added Tax, discounts and returns. Inter-company income within the Group is eliminated completely. The new IFRS 15 establishes a five-step model to measure revenue arising from contracts with customers as follows: 1. Determination of the contract (s) with the customer. 2. Determination of implementation obligations. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 210 3. Determination of the transaction price. 4. Allocation of the transaction price to the performance obligations of the contract. 5. Recognition of income when the Company fulfills an obligation to execute. In accordance with IFRS 15, revenue is recognized when the customer acquires control of the goods or services by specifying the time that the control is transferred either at a given point in time or over time (usually in the provision of services). The Group will recognize revenue in a way that reflects the transfer of the goods or services to customers to the amount it expects to be entitled to in exchange for those goods or services. Revenue from the service is recognized at the level of the completion of the services provided at the date of the balance sheet of the total number of the services rendered and the demand is reliably secured. Interest income is recognized on a time proportion basis using the effective interest rate. 3.20 Leases The Group recognizes right-of-use assets and lease liabilities for operating leases relating to the lease of means of transport, mainly passenger cars and buildings at the beginning of the lease. The assets with the right of use are registered separately in the statement of Financial Position on the line "Right-of-use fixed assets". The right of use is initially valued at the cost, which includes the amount of the initial recognition of the lease liability, any lease payments made at the beginning or before the start of the lease minus any lease incentives received, any initial direct costs and the estimation of the liability for any costs of restoring the right to use an asset. After the initial recognition, the right of use is valued at the cost of acquisition reduced by any cumulative depreciation and impairment losses and adjusted in the event of a reassessment of the lease liability. The right of use is amortized by the method of straight line amortization method until the end of the lease period, unless the contract provides for the transfer of ownership of the underlying asset to the Company at the end of the lease period. In this case, the right of use is amortized during the economic life of the underlying asset. In addition, the right of use is checked for impairment damages, if any, and is adjusted in cases where there is an adjustment of the lease liability. The lease liability at initial recognition consists of the present value of future residual rent payments. The Company uses the implied lease rate to discount future leases and, where this cannot be determined, uses the lender's differential lending rate. The differential lending interest rate of the lessee is the interest rate at which the lessee would be charged if he borrowed the necessary funds to purchase an asset of similar value to the asset with the right to use, for a similar period of time, with similar financial security and in a similar economic environment. Lease payments incorporated in the valuation of lease liability include the following: - fixed payments, - variable payments depending on an indicator or an interest rate, - amounts expected to be paid on the basis of residual value guarantees, FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 211 - the price of the exercise of the purchase right that the Company considers that it will also exercise as well as penalties for termination of the lease, if the determination of the duration of the lease has taken into account the exercise of the right of termination or denouncement by the Company. After the start date of the lease period, the lease liability decreases with the payment of the lease, increases with the financial and economic expense and is measured constantly for any reassessments or modifications of the lease. A revaluation is made when there is a change in future lease payments that may result from a change in an index or if there is a change in the Company's estimate of the amount expected to be paid for a residual value guarantee, a change in the lease and a change in the estimate of the right to purchase the underlying asset, if any. When the lease liability is adjusted, a corresponding adjustment is made to the book value of the right-of-use or is recorded in the results when the book value of the right-of-use is reduced to zero. According to the accounting policy selected by the Group, the right to use is recognized in a distinct line in the Balance Sheet entitled "Right-of-use fixed assets" and the liability to lease is recognized in the "Lease liabilities" in the categories of Long-Term and Short-Term Liabilities respectively. The Group has selected to use the exception provided by IFRS 16 and not to recognize the right to use and the lease liability for leases not exceeding 12 months or for leases in which the underlying asset is of low value (less than 5,000 Euros when it is new). 3.21 Dividend distribution The distribution of dividends to shareholders of the parent Company is recognized as a liability in the financial statements at the date on which the distribution is authorized by the Annual General Shareholders Meeting. 3.22 Earnings per Share Basic earnings per share are calculated by dividing the year’s net earnings corresponding to the common shareholders with the weighted average number of shares outstanding during the same year. Adjusted (diluted) earnings per share are calculated by adjusting the weighted average number of common shares outstanding, with the effects of all potential securities convertible into ordinary shares. Stock options (Note 6.30) are the only category of potential securities convertible into common shares of the Company. For the purposes of calculating diluted earnings per share, the exercise of stock options is taken for granted. The existing weighted number of shares outstanding is added to the difference between the number of common shares deemed to have been issued in the exercise of the stock options and the number of common shares that would have been issued at fair value. The number of common shares that would have been issued at fair value is calculated by dividing the hypothetical receipts from the stock options by the average market price of the common shares during the reporting period. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 212 4. Segment reporting The Group is active in the production of flexible plastic (films) packaging materials mainly aimed at the food industry. Given that the conditions for application of IFRS 8 “Operating Segments” are not met, and specifically the condition (b) and (c) of paragraph 5 of the Standard are not met, the Group’s activities are presented as one segment. The above conditions define that an operating segment constitutes part of the company: a) for which operating results are reviewed regularly by the “Chief Operating Decision Maker”, which corresponds to the parent company’s Board of Directors for the Group, in order to make decisions regarding the allocation of resources and to assess its effectiveness and b) for which separate Financial information is available. The geographical allocation of the Group’s sales and assets is presented in the following table. GROUP 1/1-31/12/2024 GREECE EUROPE OTHER COUNTRIES Intra-Group Write-offs TOTAL Income from external customers 15,643 67,207 73,743 0 156,593 Total Assets 191,288 73,186 48,447 (89,387) 223,535 Purchases of Fixed Assets 5,370 4,108 12,577 0 22,054 1/1-31/12/2023 GREECE EUROPE OTHER COUNTRIES Intra-Group Write-offs TOTAL Income from external customers 14,673 59,532 78,885 0 153,091 Total Assets 166,225 65,757 32,384 (66,433) 197,933 Purchases of Fixed Assets 8,994 6,795 133 0 15,923 5. Risk Management Given its constant export orientation and particularly its high extrovert strategy, the Group operates within an intense competitive and rapidly changing international environment. The Group’s general activities create several financial and other risks, including exchange rate risk, interest rate risk, credit and liquidity risk. The basic risk management policies that the Group applies during the performance of its business activity are determined primarily by its Management and are re-assessed on a continuous and systematic basis. The overall risk management plan of the Company and in general of the Group focuses on the fluctuations of the financial markets and aims to mitigate and also minimize the potential adverse effects of these fluctuations on the financial performance and results of the Group as a whole. The Group’s financial assets and financial liabilities mainly consist of cash & cash equivalents, trade receivables, loans and other receivables, bank loans, lease liabilities as well as liabilities towards suppliers and related liabilities. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 213 The Board of Directors of the Company is responsible for the effective monitoring of the exposure to business risks of the Company and the Group in general and performs with an aim to ensuring stability, the uninterrupted continuation of operations and the growth of the Company. The Management is responsible for the appropriate and effective implementation of the Business Risk Management System across the entire spectrum of the daily life of the Company and the Group in general. In particular, the Management is responsible for the systematic identification and proper evaluation of risks that affect business activities and in addition, oversees the formulation and timely implementation of the respective risk management plans. It regularly evaluates, along with the assistance of the audit Committee, the effectiveness and the need to adjust risk management plans in order to achieve optimal management. Ι. The usual financial risks to which the Group is exposed are as follows: Α. Exchange rate risk The Group operates on a global level and realizes transactions in foreign currency, mainly: (a) in U.S. dollar (U.S.D.), (b) in Polish zloty (PLN), (c) in Australian dollar (AUD) and (d) in British Pound (GBP). The Group’s exposure to foreign exchange risk mainly emerges from existing or expected cash flows in foreign currency (exports-imports), as well as from investments in foreign countries under a different currency other than Euro whose equity is exposed to exchange rate risk during the translation of their financial statements for consolidation purposes. The foreign exchange risk that emanates from transactions in foreign currency according to the above is hedged with the use of placements in foreign currency and foreign exchange futures, depending on the needs each time. On 31/12/2024, the Group did not hold any foreign exchange futures contracts. The Group monitors on constant basis the movements of the above exchange rates and the particular risk, as consequence of the broader uncertainty and volatility that characterizes the global environment, exists and may significantly affect the results of the Group during the financial year 2025. The invoiced sales in foreign currency of the Group during the financial year 2024 represent 55.84% of total sales, while during the financial year 2023 they had accounted for 57.02%, as depicted in the table below. Sales in Foreign Currency 2024 2023 % % US Dollar (USD) 20.24 21.77 Polish Zloty (PLN) 2.79 3.1 Australian Dollar (AUD) 19.06 20.57 Great Britain Pound (GBP) 13.03 10.83 Other Currencies 0.71 0.75 Total 55.84 57.02 FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 214 The following table presents the exposure of the Group to exchange rate risk on 31/12/2024 and more specifically the effect on the earnings before taxes and the equity of the Group in case of a 5% change in the exchange rates compared to the exchange rate of 31/12/2024, keeping all other variables constant. More specifically, the presented changes concern the exchange rates EUR/USD, EUR/PLN, EUR/AUD and EUR/GBP. Sensitivity Analysis for Foreign Exchange Changes GROUP Foreign Currency Increase / (decrease) of foreign currency against € Effect on earnings before taxes Effect on equity Amounts for 2024 USD 5.00% 294 578 -5.00% -294 -578 PLN 5.00% 470 1,565 -5.00% -470 -1,565 AUD 5.00% 892 919 -5.00% -892 -919 GBP 5.00% 291 303 -5.00% -291 -303 Amounts for 2023 USD 5.00% 491 621 -5.00% -491 -621 PLN 5.00% 379 1,399 -5.00% -379 -1,399 AUD 5.00% 609 735 -5.00% -609 -735 GBP 5.00% 357 362 -5.00% -357 -362 Β. Cash flow risk due to changes in interest rates The Group's bank debt is of long-term nature and is mainly denominated in Euro currency, linked to Euribor interest rates plus a margin. The fact that interest rates have remained at relatively high but also rising levels, despite their reduction, has a negative impact on the Group's performance, financial results and cash flows as expected. The Group borrows at a floating interest rate and in order to hedge the respective interest rate risk, it utilizes interest rate swaps. In this context, the Group exchanges each time the difference between amounts corresponding to the agreed fixed interest rate and amounts corresponding to the Euribor related floating nominal interest rate Note 6.32). Within this framework and based on the above mentioned measures applied by the Company and broadly by the Group, the interest rate risk is currently considered relatively controllable. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Sensitivity Analysis of Group’s Loans against changes in interest rates Interest on received bank loans GROUP Interest rate change Effect on earnings before taxes Effect on equity Amounts for 2024 1% -1% -512 512 -399 399 Amounts for 2023 1% -1% -391 391 -305 305 C. Credit risk Credit risk is the possibility that a counterparty will cause financial loss to the Group and the Company due to the breach of its contractual obligations. The maximum credit risk to which the Group and the Company are exposed, at the date of preparation of the financial statements, is the book value of their financial assets. The Group does not face significant credit risk until today. Trade receivables stem from a wide client base, both from Greece and mainly from abroad. The Group’s turnover mainly consists of transactions with reliable and creditworthy firms and companies in general, with most of which it sustains a long-term collaboration and relation of mutual trust in the majority of cases. It should be noted that the Group has established and systematically applies credit control procedures that aim at minimizing bad debt. The Credit Control Department defines credit limits per customer and specific sales and cash collection terms are applied, while possible security is requested when deemed necessary. To the greatest possible extent, the Group continuously and systematically monitors the performance and financial position of its customers, in order to be pro-active and to evaluate the need to take specific measures per customer, also according to the market characteristics and difficulties where each customer operates in. No doubtful debtors exist that have not been covered by provisions for doubtful receivables. It is also noted that the particular risk, although existent mainly due to the war conflict in Ukraine, but also due to the uncertainty in the wider Middle East region, is considered for the time being as relatively limited and controllable according to the historic data possessed by the Group and in the context of the precautionary measures that have been taken and as well as the procedures that have been established. It is underlined that a potential credit risk exists in cash and cash equivalents as well. The particular risk may arise from a possible inability of the collaborating financial institution to meet its obligations towards the Group. The Group applies procedures that limit its exposure to credit risk in relation to each financial institution which the Group collaborates with. st st Annual Financial Report of financial year 2024 (January 1 – December 31 2024) 215 Amounts in thousands euro FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY st On December 31 2024, the maturity of trade receivables was as follows: Trade receivables GROUP COMPANY 31/12/2024 31/12/2023 31/12/2024 31/12/2023 Up to 3 months 22,966 22,069 28,408 25,610 Between 3 and 6 months 1,026 949 9,359 5,564 Between 6 months and 1 year 56 3 5,663 635 Over 1 year 3 24 29 23 Total 24,051 23,045 43,458 31,833 Non overdue and non-impaired 19,669 19,765 21,333 19,435 Overdue and non-impaired 4,382 3,280 22,125 12,398 Total 24,051 23,045 43,458 31,833 From the overdue and non-impaired receivables of the Company amounting to 22,125 thousand Euros of the above table, the amount of 20,496 thousand Euros concerned receivables of the parent company from subsidiaries. D. Liquidity risk In general, the monitoring of liquidity risk is focused on systematic monitoring and effectively managing cash inflows and outflows on a constant basis, in order for the Group to be able to smoothly and consistently meet its cash liabilities. Liquidity risk is maintained at low levels by holding and ensuring adequate cash balances, while it should also be noted that there are adequate unused credit lines with financial institutions in order to face any possible shortage in cash. Such case however, despite the clearly negative circumstances and conditions particularly and historically seen in the domestic economy over the past years (debt crisis, health crisis, energy crisis, etc.), has not yet appeared. Taking into consideration, however, both the concerns regarding the aggravation of economic conditions in the global market place, the significant appreciation of energy prices, raw materials and food items, as well as the course of the global economy mainly due to the impact of the war conflict in Ukraine, but also the ongoing war conflict with reduced intensity in Gaza Strip, the probability of this risk affecting the Group's cash position, however to a controllable and manageable extent, cannot be ruled out. The table below summarizes the maturity dates of the financial liabilities on 31 December 2024, based on the payments arising from the relevant contracts, at undiscounted prices. st st Annual Financial Report of financial year 2024 (January 1 – December 31 2024) 216 Amounts in thousands euro FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 217 Financial Liabilities GROUP 31/12/2024 up to 6 months 6 to 12 months 2 to 5 years > 5 years Total Bank Debt 4,501 3,608 32,162 10,893 51,165 Other long-term liabilities 0 0 2,123 0 2,123 Lease liabilities 282 282 604 0 1,169 Suppliers and related liabilities 31,205 0 0 0 31,205 Liabilities from income taxes 585 4,026 0 0 4,611 Total 36,574 7,917 34,889 10,893 90,273 GROUP 31/12/2023 up to 6 months 6 to 12 months 2 to 5 years > 5 years Total Bank Debt 3,866 3,011 22,368 9,891 39,137 Other long-term liabilities 554 554 1,216 0 2,324 Lease liabilities 296 296 536 0 1,127 Suppliers and related liabilities 28,435 0 0 0 28,435 Liabilities from income taxes 2,006 1,385 0 0 3,391 Total 35,156 5,246 24,120 9,891 74,413 ΙΙ. Other risks to which the Group is exposed Α. Risk arising from competition of foreign and domestic firms The competition in the international market where the Group and the Company activate is becoming constantly stronger. The Group, based on the fully staffed, properly and well trained, specialized and fully equipped Research and Development Department that it owns, along the implementation of its investment plan in order to further enhance production capacity, and in view of the long-term presence in the sector it possesses, has already managed to differentiate its products from the current competition and to present qualitative diversified solutions. The high quality standards of the Group’s produced products, the strong recognition, and especially the brand name of the Group and the Company further contribute towards this direction. At the same time, it must be noted that the high cost of "entrance" into the specific market, in terms of investments required in high-tech mechanical equipment and subsequently in research and development costs, constitutes a factor that quells to a significant extent the above risk. Despite the above, the particular risk due to the stronger competition seen in the international environment, which the Company and the broader Group activates in, is real and exists as at the time of the preparation of this Report, and therefore it may affect to a certain extent the performance and the broader results of the Group during the financial year 2025. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 218 Β. Risk of reduced demand due to consumption slowdown The Group is active in an intensive and competitive global environment. Its specialized know-how in conjunction with the research, development and creation of new innovative products and strong infrastructure in production equipment, assist the Group to remain competitive as well as expand or achieve its further penetration in new markets. The products of the Group are used mainly in food packaging which, since food is of first need, are usually affected the least from consumption slowdown. However they may be affected subsequently by external factors that may prevail in the markets in which the Group is active. Such external factors that may harm demand for the Group’s products include the probability of illnesses in meat products, the change in food and nutrition patterns, climate changes, a slowdown of the global economy etc. Given the fact that at the time of preparation of the present financial report, there is a weak consumer demand due to the intense inflationary pressures both in the Eurozone and globally, without any signs of reversal or even de-escalation, the particular risk is assessed as significant and therefore it might affect the Group's financial performance and financial results during the financial year of 2025. C. Risk related to the cost of production (a) risk of increasing raw material prices The Group is exposed to continuous price volatility of raw materials that it acquires internationally. This volatility may result from abrupt changes in oil production prices, other chemical products or other reasons. The Group, based on its experience and know-how, takes all the necessary and appropriate measures to ensure to the greatest possible extent the adequacy of raw materials as well as their sourcing under the best possible conditions. In order to reduce this risk, the Group’s inventory and commercial policy applied on a per case basis is adjusted accordingly in order to diversify and transfer part of this risk, to the extent that this is possible and according to the current conditions present each time as regards to competition. Following the above and taking into account the volatile and uncertain global economic environment, this risk in case of inability to substantially transfer the increase in the cost of raw material prices to the price of the final product, is assessed as particularly significant and may adversely affect the Group's results during the current year 2025. b) risk of rising electricity prices. Electricity consumption is an important cost factor in relation to the Group's production activity. To address this risk and mitigate its negative consequences, the Group invests systematically in equipment with low electricity consumption. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 219 However, at the present time and based on the prevailing instability and volatility, the particular risk due to the constantly rising energy prices following the ongoing war conflict between Russia and Ukraine but also due to the disruptions observed in the Southeast European energy market, is being assessed by the Company's Management as particularly important. In this context this type of risk might significantly affect the financial results and performance of the broader Group during the fiscal year 2025. D. Risks related to work safety Work safety for the Group’s employees is a top priority and necessary condition when attempting to operate its production facilities with normality. A plan that focuses on establishing a safety culture throughout all the Group’s activities and operations, as well as on targeting the constant training and education of the Company’s personnel is applied on a continuous and constant basis. Moreover, broad educational programs are applied to systematically and fully train and educate employees on workplace safety and hygiene issues. The application of such programs is continuously reviewed by the Company’s relevant Department with the assistance of specialized professionals - Security Technicians with whom the Company collaborates on a permanent and fixed basis. E. Environmental risks Protection of the environment and sustainable development are fundamental principles and growth pillars for the Group. For this reason, the Group takes strict measures in the areas where it operates, which in several cases extend further than those imposed by law. The Group invests in best available techniques for protecting the environment, it closely monitors planned changes in environmental law, thoroughly reviews and takes appropriate measures to comply with the applicable regulatory framework, develops its production units with absolute respect towards the environment and it ensures to take the necessary measures in advance so as to avoid any risk of not complying with the current legislative and regulatory framework. F. Risks related to climate change Climate change is a global environmental issue with implications that significantly affect human health, working conditions and safety at work. The optimal response to the risk of climate change comprises a fundamental commitment of the Group, which in addition to its legal obligation also considers this issue as a moral obligation to contribute actively and substantially to the efforts of both the international community and our country to combat climate change-related risks. The Group recognizes both the risks associated with the phenomenon of climate change, and its obligations in relation to the need for continuous improvement of its environmental performance. The mitigation of the effects of climate change affects inevitably and determines significantly the business strategy of the Group through the adoption and implementation of measures to reduce its environmental footprint and the systematic effort to use environmentally friendly sources of energy. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 220 The Group monitors and records on a systematic basis the environmental impact of its business activities and takes measures to reduce its environmental footprint. FLEXOPACK aims at the continuous reduction of carbon emissions which are mainly due to the consumption of electricity which is the main source of energy of the Company. The Group's vision is to continue to be one of the most important Greek companies with a strong international presence and with a parallel contribution to sustainable development. The desire of the Group is to enhance its long-term value through the production of technologically advanced products that meet the most demanding international standards along with quality, safety and sustainable development standards. In this context, the Group promotes and implements its own Sustainable Development Policy, which focuses especially on the following areas: - Demonstration of preparedness for emergencies, -application of emergency prevention, detection and management procedures, -design and construction of facilities aiming at the greatest possible energy savings, -frequent maintenance and constant renewal and upgrade of the used mechanical equipment, in order to leave a low energy footprint, -continuous information, training and awareness raising of personnel on climate change issues, -integration into the system of recycling and alternative packaging management, in order to prevent the generation of packaging waste and the reuse, recycling and effective utilization of all materials, -selection of recyclable, if possible, raw materials with the lowest possible energy footprint, -application of technologies for reduction of direct and indirect emissions of greenhouse gases from energy consumption, -monitoring of the policy followed by the Group suppliers regarding the implementation of procedures for dealing with climate change and the use of renewable energy sources along with the provision of relevant recommendations and suggestions, where necessary, -building relationships of trust with the local communities in which the Group develops its business activities; continuous care to minimize the inconveniences caused. G. Risk related to current developments in Ukraine and the wider Middle East region. The war in Ukraine generated a major geopolitical instability and also unsustainable repercussions on the global economy. The latter was due to the large increases in energy prices, raw materials, industrial metals and other consumer goods. It is noted that the Group has no significant business exposure to the countries involved in the war conflict and therefore no material impact (direct or indirect) exists on its business activities in relation to the above developments. During the financial year 2024, the Group's sales to the Ukrainian market amounted cumulatively to 0.12% of the consolidated turnover, versus a percentage of 0.06% in the previous financial year. Furthermore, the Group recorded zero sales in the Russian market. As a result, there has been no material effect (either direct or indirect) on the activities, results, financial position and performance of the Group in relation to the above risk. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 221 At the present time, any prediction regarding the duration and impact of the ongoing war conflicts in the Ukraine and the Middle East regions, as well as their subsequent negative consequences, is uncertain and precarious. However, especially with regard to the crisis in Middle East, there are tangible signs of de- escalation. The crisis in the broader region of Middle East has generated significant transportation issues across the area of Suez Canal and therefore it is quite difficult for the Group’s products to access the international markets, mainly in Australia. This development has significantly lengthened delivery times and has generally created problems in terms of the supply chain affecting at the same time the respective transportation cost. In order to maintain its supply chain as active as possible, the Company has taken all the necessary measures such as utilizing air transport instead of sea transport. This option however has resulted into a significant increase of transport costs. Η. Capital Management The Group’s objectives in relation to capital management are the smooth operation of its business activities, ensuring financing for its investment plans and the optimal allocation of capital in order to decrease the cost of capital. For the purpose of capital management, the Group monitors the following ratio: “Net debt to Total Employed Capital” Net debt is calculated as total short-term and long-term interest-bearing debt minus total cash & cash equivalents. Total employed capital is calculated as total net debt plus total equity. For financial years ended on December 31 st 2024 and 2023 respectively, the above financial ratio evolved as follows. EUR THOUS. Group Company 31/12/2024 31/12/2023 31/12/2024 31/12/2023 Long-term debt obligations 43,055 32,259 38,829 27,191 Short-term bebt obligations 8,110 6,878 6,148 4,861 Total bank debt 51,165 39,137 44,977 32,052 Liabilities for Leases 1,169 1,128 751 643 Total Bank Debt 52,334 40,265 45,728 32,695 Minus : Cash and cash equivalents 38,416 39,955 30,889 24,418 Net Bank Debt (1) 13,918 309 14,839 8,277 Total Equity (2) 131,154 121,386 115,821 107,535 Total Employed Capital (1)+(2) 145,072 121,695 130,660 115,812 Net Bank Debt / Total Employed Capital 9.6% 0.3% 11.4% 7.1% The Group may affect its capital structure via the repayment of existing debt or the collection of new debt, via the share capital increase or capital return towards the shareholders, and also via the distribution or the non-distribution of dividends or through other money distributions. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 222 6. Notes on the Financial Statements 6.1 Tangible fixed assets The Group’s tangible fixed assets are analyzed as follows. GROUP Tangible fixed assets Plots Buildings Mechanical equipment Vehicles, furniture and other equipment Assets under construction Total Acquisition Cost as at January 1st 2023 9,836 23,058 73,383 4,905 11,204 122,385 minus: Accumulated Depreciations 0 (8,198) (50,899) (3,446) 0 (62,544) Book value as at January 1st 2023 9,836 14,859 22,484 1,458 11,204 59,842 Additions 39 946 9,841 275 4,384 15,484 FX differences of acquisition cost (38) 287 411 4 655 1,319 Transfers 0 982 3,606 0 (4,589) 0 Sales - Reductions 0 0 (110) 0 0 (110) Depreciations of the current period 0 (892) (3,786) (329) 0 (5,007) FX differences of depreciations 0 (106) (137) (0) 0 (243) Depreciations of sold, written-off goods 0 0 110 0 0 110 Acquisition Cost as at December 31st 2023 9,837 25,273 87,131 5,184 11,654 139,078 minus: Accumulated Depreciations 0 (9,196) (54,712) (3,776) 0 (67,684) Book value as at December 31st 2023 9,837 16,077 32,419 1,408 11,654 71,394 Additions 1,996 1,135 2,183 288 16,247 21,849 FX differences of acquisition cost (35) 60 40 (9) (12) 45 Transfers 0 6,626 1,704 235 (8,565) 0 Sales - Reductions 0 0 (247) (1) 0 (248) Depreciations of the current period 0 (924) (4,882) (345) 0 (6,151) FX differences of depreciations 0 (23) 27 9 0 13 Depreciations of sold, written-off goods 0 0 51 1 0 52 Acquisition Cost as at December 31st 2024 11,798 33,095 90,811 5,697 19,323 160,724 minus: Accumulated Depreciations 0 (10,142) (59,516) (4,111) 0 (73,769) Book value as at December 31st 2024 11,798 22,952 31,295 1,587 19,323 86,955 Additions to property, plant and equipment mainly arise from: a) FLEXOPACK by an amount of 5.165 million Euros that mainly concerns the purchase of mechanical equipment. b) FLEXOPACK POLSKA by an amount of 4.103 million Euros that mainly concerns the construction of a new building as well as purchase of mechanical equipment. c) FLEXOPACK PTY LTD of 2.445 million Euros and mainly concern the purchase of mechanical equipment. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 223 d) FLEXOPACK PROPERTIES of 8.076 million Euros and mainly concern the construction of a new industrial building in Australia. e) FLEXOPACK USA of 2.056 million Euros and mainly concern the purchase of land for the purpose of construction of a new industrial building in the state of Pennsylvania, United States. The Company’s tangible fixed assets are analyzed as follows. COMPANY Tangible fixed assets Plots Buildings Mechanical equipment Vehicles, furniture and other equipment Assets under construction Total Acquisition Cost as at January 1st 2023 8,499 19,206 61,223 4,059 5,468 98,456 minus: Accumulated Depreciations 0 (6,705) (45,662) (2,841) 0 (55,207) Book value as at January 1st 2023 8,499 12,502 15,561 1,218 5,468 43,248 Additions 39 677 7,029 216 595 8,556 Transfers 0 982 2,481 0 (3,464) 0 Sales - Reductions 0 0 (109) 0 0 (109) Depreciations of the current period 0 (694) (2,583) (255) 0 (3,531) Depreciations of sold written-off goods 0 0 109 0 0 109 Acquisition Cost as at December 31st 2023 8,538 20,866 70,625 4,275 2,599 106,903 minus: Accumulated Depreciations 0 (7,399) (48,136) (3,095) 0 (58,630) Book value as at December 31st 2023 8,538 13,467 22,488 1,179 2,599 48,273 Additions 8 91 1,895 195 2,975 5,165 Transfers 0 0 787 30 (817) 0 Sales - Reductions 0 0 (24) (1) 0 (25) Depreciations of the current period 0 (699) (3,317) (266) 0 (4,282) Depreciations of sold, written-off goods 0 0 2 1 0 2 Acquisition Cost as at December 31st 2024 8,546 20,957 73,282 4,499 4,758 112,043 minus: Accumulated Depreciations 0 (8,097) (51,451) (3,361) 0 (62,910) Book value as at December 31st 2024 8,546 12,860 21,831 1,138 4,758 49,133 6.2 Goodwill Gross book value at December 31st 2022 252 Cumulative impairment loss 0 Net book value at December 31st 2022 252 Gross book value at December 31st 2023 252 Cumulative impairment loss 0 Net book value at December 31st 2023 252 Gross book value at December 31st 2024 252 Cumulative impairment loss 0 Net book value at December 31st 2024 252 FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 224 The amount of goodwill refers to the acquisition of the Polish company FLEXOPACK POLSKA Sp. z.o.o. Impairment Review of Goodwill For purposes of reviewing goodwill for possible impairment on 31/12/2024, the aforementioned subsidiary constitutes an individual cash flow generating unit. As regards to goodwill recognized from the acquisition of FLEXOPACK POLAND Sp. z.o.o., the recoverable amount of such was calculated based on the “value in use”, discounting its future cash flows. The definition of the subsidiary’s future cash flows took place by well-founded estimations of management for the level of the subsidiary’s future profitability and by evaluating current market conditions. The basic assumptions regarding the estimation of the subsidiary’s value, are as follows: Discount rate (WACC) 9.15% Average growth of turnover in the next five years 6.7% Growth rate after five-years 1.0% According to the impairment review on 31/12/2024 no impairment losses emerged from the above goodwill. Furthermore, no losses emerge in the following cases: a) if the above discount rate (WACC) increases by 10%, with the other variables being constant. b) if the above average rate of turnover increase for the next five years is reduced by 30%, with the other variables being constant. 6.3 Intangible assets The Group’s and Company’s intangible assets are analyzed as follows: Intangible Assets Software GROUP Other intangibles Total Software COMPANY Other intangibles Total Acquisition Cost as at January 1st 2023 2,037 3,487 5,525 2,036 3,487 5,524 minus: Accumulated Amortization (1,627) (1,980) (3,606) (1,626) (1,980) (3,605) Book value as at January 1st 2023 411 1,508 1,918 411 1,508 1,918 Additions 73 366 438 73 366 438 Amortization during the period (206) (209) (415) (206) (209) (415) Acquisition Cost as at December 31st 2023 2,110 3,853 5,963 2,109 3,853 5,962 minus: Accumulated Amortization (1,833) (2,189) (4,021) (1,832) (2,189) (4,020) Book value as at December 31st 2023 277 1,664 1,942 277 1,664 1,942 Additions 6 199 205 6 199 205 Amortization during the period (123) (210) (333) (123) (210) (333) Acquisition Cost as at December 31st 2024 2,116 4,052 6,168 2,115 4,052 6,167 minus: Accumulated Amortization (1,955) (2,399) (4,354) (1,954) (2,399) (4,353) Book value as at December 31st 2024 161 1,653 1,814 161 1,653 1,814 FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 225 Other intangible assets include know-how use rights, costs incurred for the development of trading names and mainly costs for the establishment of patents on different applications of multiple layer packing films abroad. The additions to Other intangible assets amounting to 366 thousand Euros, concern the cost of developing trademarks and mainly costs incurred for patenting different applications of multi-layer packaging films abroad. 6.4 Participations in Subsidiaries In the parent financial statements, investments in subsidiaries are valued at acquisition cost. The movement of investments is analyzed as follows. COMPANY 31/12/2024 31/12/2023 Opening balance 30,414 21,414 Share capital increase in FLEXOPACK INTERNATIONAL LIMITED 1,500 9,000 Closing balance 31,914 30,414 Condensed financial information on subsidiary companies COMPANY 31/12/2024 31/12/2023 Country Acquisition Cost Direct participation FLEXOPACK POLSKA Sp. Zo.o Poland 13,144 13,144 FLEXOPACK TRADE AND SERVICES DOO BEOGRAD Serbia 70 70 FLEXOPACK INTERNATIONAL LIMITED Cyprus 18,700 17,200 31,914 30,414 Indirect participation FLEXOPACK PTY LTD Australia 4,638 4,638 FLEXOPACK TRADE AND SERVICES UK LIMITED England 200 200 FLEXOPACK ΝΖ LIMITED New Zealand 641 0 FLEXOPACK PROPERTIES PTY LTD Australia 1,978 1,978 FLEXOPACK FRANCE France 1,400 900 FLEXOPACK USA, INC. USA 153 153 FLEXOPACK IRELAND LTD Ireland 100 100 FLEXOPACK DENMARK APS Denmark 0 5 The above subsidiary companies are fully controlled by the Cypriot subsidiary company FLEXOPACK INTERNATIONAL LIMITED which is fully owned (100%) by the parent company FLEXOPACK PLASTICS AEBE. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY No event or evidence has arisen to suggest that the book value of subsidiaries may no longer be recoverable and accordingly no impairment test was performed. Moreover, for the subsidiary companies FLEXOPACK POLSKA and FLEXOPACK PTY LTD based on the impairment test that was performed on 31/12/2024, no impairment losses arose. 6.5 Participations in associate companies Participations of the Company in associate (related) companies are analyzed as follows. GROUP COMPANY 31/12/2024 31/12/2023 31/12/2024 31/12/2023 INOVA SA 3,902 3,311 1,199 1,199 VLACHOS BROS S.A. 4,418 3,989 1,000 1,000 8,320 7,300 2,199 2,199 The movement of investments in associate companies is as follows: GROUP COMPANY 31/12/2024 31/12/2023 31/12/2024 31/12/2023 Opening balance 7,300 6,208 2,199 2,199 Proportion in profit/loss (after taxes) 1,245 1,278 0 0 Other (36.5) (36) 0 0 Dividends (188) (150) 0 0 Closing balance 8,320 7,300 2,199 2,199 Condensed financial information on associate companies: Domicile Acquisition Cost Assets Liabilities Income Earnings (losses) before taxes Earnings (losses) after taxes YEAR 2024 INOVA SA Greece 1,199 13,799 5,995 10,543 1,945 1,483 VLACHOS BROS S.A. Greece 1,000 28,527 19,267 26,554 1,372 1,055 YEAR 2023 INOVA SA Greece 1,199 12,277 5,656 9,839 2,010 1,552 VLACHOS BROS S.A. Greece 1,000 27,383 18,923 25,816 1,353 1,053 st st Annual Financial Report of financial year 2024 (January 1 – December 31 2024) 226 Amounts in thousands euro FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 227 6.6 Other long-term receivables The Group’s and Company’s other long-term receivables are analyzed as follows: GROUP COMPANY Other Long-term Receivables 31/12/2024 31/12/2023 31/12/2024 31/12/2023 Given Guarantees 48 56 48 56 Participation in the company CIRCULATE AB 77 65 77 65 Interest Rate SWAPS 561 0 561 0 Other Long-term Receivables 6 1 0 0 Total 692 122 686 121 6.7 Inventories The inventories of the Group and the Company are analyzed as follows: GROUP COMPANY Inventories 31/12/2024 31/12/2023 31/12/2024 31/12/2023 Raw Materials 19,169 17,825 15,553 14,709 Consumables 324 202 177 145 Spare parts & packaging items 1,989 1,881 1,286 1,126 Products & other inventory 33,826 26,157 8,747 5,600 Total 55,308 46,065 25,763 21,579 Provisions for impairment (366) (366) (286) (286) Total 54,942 45,699 25,477 21,293 6.8 Trade receivables The Group’s and Company’s customers and other trade receivables are analyzed as follows: GROUP COMPANY Trade receivables 31/12/2024 31/12/2023 31/12/2024 31/12/2023 Customers (open account) 22,014 21,339 8,009 7,579 Receivables from associates 1,610 1,536 34,593 23,666 Checks Receivable 942 675 942 675 Impairment provisions (266) (306) 0 0 Provision for credit risk (249) (198) (87) (87) Total 24,051 23,045 43,458 31,833 As of 31 December 2024, the maturity of trade receivables was as follows: FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Trade receivables GROUP COMPANY 31/12/2024 31/12/2023 31/12/2024 31/12/2023 Up to 3 months 22,966 22,069 28,408 25,610 3 - 6 months 1,026 949 9,359 5,564 6 months - 1 year 56 3 5,663 635 Over 1 year 3 24 29 23 Total 24,051 23,045 43,458 31,833 Non overdue and non impaired 19,669 19,765 21,333 19,435 Overdue and non impaired 4,382 3,280 22,125 12,398 Total 24,051 23,045 43,458 31,833 From the overdue and non-impaired receivables of the Company amounting to 22,125 thousand Euros of the above table, the amount of 20,496 thousand Euros concerned receivables of the parent company from subsidiaries. The expected credit losses were calculated based on the table below and the relevant provision on 31/12/2024 amounted to 51 thousand Euros for the Group. GROUP Days of delay with regard to trade receivables 31/12/2024 Non overdue <30 days 31-60 days 61-90 days 90-365 days >365 days Total Total amount of trade receivables 19,102 3,731 227 240 56 3 23,358 Expected credit loss 103 101 9 16 17 3 249 31/12/2023 Total amount of trade receivables 19,604 3,013 216 0 28 14 22,875 Expected credit loss 74 82 8 0 8 25 198 COMPANY Days of delay with regard to trade receivables 31/12/2024 Non overdue <30 days 31-60 days 61-90 days 90-365 days >365 days Total Total amount of trade receivables 20,420 8,112 3,703 2,448 7,917 2 42,603 Expected credit loss 34 45 1 4 3 2 89 31/12/2023 Total amount of trade receivables 18,856 6,980 1,645 1,464 2,287 13 31,245 Expected credit loss 31 39 1 0 3 13 87 st st Annual Financial Report of financial year 2024 (January 1 – December 31 2024) 228 Amounts in thousands euro FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY 6.9 Other receivables The Group’s and Company’s other receivables are analyzed as follows: GROUP COMPANY Other receivables 31/12/2024 31/12/2023 31/12/2024 31/12/2023 Advance payment for income tax 3,606 3,030 2,368 1,644 Receivables from the Greek State for V.A.T. 853 826 723 809 Purchases of inventory under receipt 0 1,439 0 1,439 Discounts on purchases under settlement 1,210 803 1,012 663 Deferred expenses 1,097 851 708 404 Income receivable for the year 53 54 53 54 Prepayments and loans to employees 59 66 56 65 Sundry Debtors 75 48 73 27 Total 6,953 7,118 4,993 5,105 6.10 Cash & cash equivalents Cash and cash equivalents refer to the Group’s and Company’s cash in hand and to short-term bank deposits and term deposits held at call with banks. The Group’s and Company’s cash and cash equivalents are as follows: GROUP COMPANY Cash and cash equivalents 31/12/2024 31/12/2023 31/12/2024 31/12/2023 Cash in hand and at banks 38,416 39,955 30,889 24,418 Total 38,416 39,955 30,889 24,418 6.11 Equity 6.11.1 Share Capital and Share Premium Share Capital Share premium Total Number of shares Treasury shares 31/12/2024 6,409 3,683 10,092 11,869.224 96.450 31/12/2023 6,409 3,683 10,092 11,869.224 96.450 The Company's share capital now amounts to 6,409,380.96 Euros, divided into 11,869,224 common registered shares, with a nominal value of 0.54 Euros per share. st st Annual Financial Report of financial year 2024 (January 1 – December 31 2024) 229 Amounts in thousands euro FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 230 Of the above shares, 11,772,774 shares carry voting rights, since the remaining 96,450 are treasury shares, the voting rights of which are suspended in accordance with the provisions of article 50 paragraph 1 of Law 4548/2018, as in force. (Note 6.11.2) The Company's share premium reserve arose from the issuance of shares that were subscribed at a value greater than their nominal value. 6.11.2 Reserves The Group’s and Company’s reserves are analyzed as follows: Reserves GROUP COMPANY 31/12/2024 31/12/2023 31/12/2024 31/12/2023 Statutory reserve 5,458 5,043 5,458 5,043 Specially taxed reserves 12,196 12,196 12,196 12,196 Tax-free reserves of development law related grants 5,137 5,137 5,137 5,137 Other reserves analyzed as follows: Tax-exempt reserves of L. 1828/89 876 876 876 876 Tax-exempt reserves of L. 3220/2004 321 321 321 321 Tax-exempt reserves of L. 3908/2011 308 308 308 308 Tax-exempt reserves of L. 4172/2013 408 258 408 258 Reserves from specially taxed income 33 33 33 33 Other reserves 156 156 43 43 Total other reserves 2,103 1,953 1,990 1,840 Stock options 400 94 400 94 Treasury shares -386 -386 -386 -386 Reserve from FX differences 1,249 667 0 0 Grand total 26,158 24,705 24,796 23,925 Statutory reserve: According to Greek corporate law, companies are obliged to create 5% of the period’s earnings as an statutory reserve until such reaches one third of the paid up share capital. During the Company’s life the statutory reserve cannot be distributed. Special taxed reserves: Special taxed reserves of the Parent Company were created to cover its own participation in the context of implementing investment plans, according to the provisions of several development laws. Tax-free reserves of development law grants: They arose from the transfer of the grants received by the Company from the profit carried forward to the capital reserves. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 231 The Group’s Management does not intend to capitalize or distribute the above reserves and thus has not recognized a relevant deferred tax liability. Other reserves Other reserves include tax-exempt reserves and reserves taxed under special provision and are analyzed as follows. -Tax-exempt reserves according to L. 1828/89, L. 3220/2004 and L. 3908/2011 Such reserves have been created according to the provisions of tax law and are capitalized, with the payment of income tax. -Tax-exempt reserves or reserves taxed according to special laws Such reserves concern interest income that was either not taxed or on which tax has been withheld at the source. According to Greek tax law, these reserves are exempt from income tax, with the condition that they will not be distributed to shareholders. The Company does not intend to distribute the above reserves and thus it has not recognized a deferred tax liability for the income tax that will be rendered payable in case of distribution. - Special reserve article 48, Law 4172/2013 It concerns a special reserve formed from dividends received from associate companies that is exempt from income taxation based on the provisions of article 48 of Law 4172/2013. Stock options. Share distribution program in the form of stock option plan, in accordance with the provisions of article 113 of law 4548/2018. (Note 6.34) Treasury shares The Management of the Company pursuant to the decisions of the Annual Ordinary General Meeting of Shareholders of June 26 th , 2020 and the Board of Directors of July 13 th , 2020, proceeded on 22.07.2020, via an over-the-counter (OTC) transaction, with the purchase of 96,450 treasury shares with an average purchase price of 4.00 Euros per share, and a total transaction value of 385,800 Euros. After the aforementioned purchase, the Company holds as of today 96,450 treasury shares, which correspond to a percentage of 0.82% of the total shares of the Company. Reserve for foreign exchange differences: This reserve is used to register foreign exchange differences from the translation of financial statements of foreign subsidiaries. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 232 The movement of the Group’s and Company’s reserves is as follows: GROUP Statutory reserve Treasury shares Specially taxed reserves Other reserves Stock options FX differences from consolidation Total Balance as at December 31st 2022 4,584 (386) 17,334 1,791 363 (502) 23,183 Formation of statutory reserves 459 0 0 0 0 0 459 Formation of tax free reserve Law 3908/2011 0 0 0 62 0 0 62 Formation of tax free reserve Law 4172/2013 0 0 0 100 0 0 100 Exercise of stock options 0 0 0 0 (423) 0 (423) Stock options 0 0 0 0 154 0 154 FX differences due to consolidation of subsidiaries abroad 0 0 0 0 0 1,170 1,170 Balance as at December 31st 2023 5,043 (386) 17,334 1,953 94 667 24,705 Formation of statutory reserves 415 0 0 0 0 0 415 Formation of tax free reserve Law 4172/2013 0 0 0 150 0 0 150 Stock options 0 0 0 0 307 0 307 FX differences due to consolidation of subsidiaries abroad 0 0 0 0 0 582 582 Balance as at December 31st 2024 5,458 (386) 17,334 2,103 400 1,249 26,158 COMPANY Statutory reserve Treasury shares Specially taxed reserves Other reserves Stock options Total Balance as at December 31st 2022 4,584 (386) 17,334 1,678 363 23,573 Formation of statutory reserves 459 0 0 0 0 459 Formation of tax free reserve Law 3908/2011 0 0 0 62 0 62 Formation of tax free reserve Law 4172/2013 0 0 0 100 0 100 Exercise of stock options 0 0 0 0 (423) (423) Stock options 0 0 0 0 154 154 Balance as at December 31st 2023 5,043 (386) 17,334 1,840 94 23,925 Formation of statutory reserves 415 0 0 0 0 415 Formation of tax free reserve Law 4172/2013 0 0 0 150 0 150 Stock options 0 0 0 0 307 307 Balance as at December 31st 2024 5,458 (386) 17,334 1,990 400 24,796 FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY 6.11.3 Retained earnings Retained earnings GROUP COMPANY 31/12/2024 31/12/2023 31/12/2024 31/12/2023 Balance as at January 1st 86,589 73,457 73,519 67,190 Net Results for the period 10,675 15,101 9,774 8,297 Revaluation of earnings-(losses) from defined benefit plans (29) (5) (29) (5) Distributed dividends (1,766) (1,766) (1,766) (1,766) Transfers to reserves (565) (620) (565) (620) Exercise of stock options 0 423 0 423 Balance as at December 31st 94,904 86,589 80,933 73,519 6.12 Deferred tax assets and liabilities The calculation of deferred tax assets and liabilities is conducted at the individual Group company level and to the extent where receivables and liabilities arise, such are offset between each other (at the level of each individual company). The deferred tax assets and liabilities are offset when there is an applicable legal right to offset current tax assets against current tax liabilities and when the deferred income taxes refer to the same tax authority. The Group’s and the Company’s deferred tax assets and liabilities result from the following items: GROUP Deferred tax liabilities/assets Statement of Financial Position Deferred tax Income statement 31/12/2024 31/12/2023 1/1- 31/12/2024 1/1- 31/12/2023 Deferred tax assets Provision for staff indemnities 168 140 28 17 Other short-term liabilities 0 0 0 (289) Provisions 246 207 39 1 Tax loss of subsidiaries 161 0 161 0 Expected credit loss (IFRS 9) 60 42 18 21 Foreign exchange differences 154 135 20 (160) Valuation of derivatives 0 0 0 (53) Stock options 88 21 67 (59) Other 7 8 (1) 5 884 552 332 (517) Deferred tax liabilities Intangible assets (105) (106) 0 14 Tangible assets (1,379) (1,428) 49 12 Foreign exchange differences (123) 0 (123) 0 (1,608) (1,534) (74) 26 Net deferred tax liabilities (725) (982) Net charge of deferred tax on the results 257 (491) Deferred tax recognized in the results 249 (492) Deferred tax recognized in the other comprehensive income 8 1 Total 257 (491) st st Annual Financial Report of financial year 2024 (January 1 – December 31 2024) 233 Amounts in thousands euro FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY COMPANY Deferred tax liabilities/assets Statement of Financial Position Deferred tax Income statement 31/12/2024 31/12/2023 1/1- 31/12/2024 1/1- 31/12/2023 Deferred tax assets Provision for staff indemnities 168 140 28 17 Other short-term liabilities 0 0 0 (289) Provisions 78 75 3 5 Expected credit loss (IFRS 9) 19 19 0 4 Foreign exchange differences 154 135 20 (160) Valuation of derivatives 0 0 0 (53) Stock options 88 21 67 (59) 507 389 117 (536) Deferred tax liabilities Intangible assets (105) (106) 0 14 Tangible assets (1,143) (1,161) 18 43 Valuation of derivatives (123) 0 (123) 0 (1,372) (1,267) (105) 58 Net deferred tax liabilities (865) (878) Net charge of deferred tax on the results 12 (478) Deferred tax recognized in the results 4 (480) Deferred tax recognized in the other comprehensive income 8 1 Total 12 (478) 6.13 Provision for staff indemnities due to retirement The Group and Company recognize the liability for staff retirement indemnities as the present value of the legal commitment for the payment of staff retirement lump sum. The actuarial valuation of the liabilities has been carried out on the basis of the current legislation, as it derives from L.2112 / 1920 and L.3026 / 1954 and as they were amended by L.4093 / 2012, L.4336 / 2015 and L.4194 / 2013. The Company has not activated any special benefits program for employees other than those arising from the above legislation, which is committed to benefits in cases of retirement for all employees. The valuation of the liabilities is being performed in order to capture the following: a) The obligation of the company, when an employee has provided a service in exchange for benefits to be paid in the future and b) The expense of the financial period, when the company consumes the financial benefits arising from the service provided by an employee in exchange for the payment of benefits. Based on the current legislation (L.2112 / 1920, L.4093 / 2012, L.4336 / 2015 and L.3026 / 1954, L.4194 / 2013) the benefit received by the employees concerns exclusively and only the amount of one-time compensation and is given in case of normal retirement. st st Annual Financial Report of financial year 2024 (January 1 – December 31 2024) 234 Amounts in thousands euro FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 235 The amount of the benefit depends on the years of service and the amount of the salary. In the event of exit due to retirement, the amount of compensation to be paid is equal to 40% of the pensionable salary and varies depending on the years of service of each employee. The relevant liability was calculated after an actuarial study on 31/12/2024 and was analyzed as follows: Employee benefits due to retirement from service GROUP COMPANY 31/12/2024 31/12/2023 31/12/2024 31/12/2023 Balance at beginning 637 560 637 560 Debits - (credits) in the results 89 71 89 71 Debits - (credits) in the statement of total comprehensive income 37 6 37 6 Balance at end 763 637 763 637 The main actuarial assumptions used are the following: 31/12/2024 31/12/2023 Discount rate 2.78% 2.98% Future salary increases 2.50% 2.50% Inflation 2.00% 2.10% 31/12/2024 31/12/2023 Changes in the balance sheet liability Net Liability to be recorded in the balance sheet at the beginning of the year 637 560 Contributions payable by Employer - - Expenditure to be entered in the income statement 114 102 Benefits paid within the current year by the Employer (26) (31) Amount entered in the OCI 37 6 Personnel transportation costs - - Net Liability to be recorded in the balance sheet at the end of the year 763 637 Changes in the present value of the liability Present value of the liability at the beginning of the year 637 560 Interest expense 19 16 Current service cost 70 62 Employee contributions - - Prior service cost - - Cost (result) of Settlements / Curtailments / Special Cases (e.g. Consolidations, Splits, Terminations) 25 25 Benefits paid within the current year (26) (31) Expenses - - Actuarial (profit) loss on liability 37 6 Present value of the liability at the end of the year 763 637 FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 236 Amounts recorded in the Balance Sheet and Income Statement and related analysis Balance sheet for the year Present value of the obligation at the end of the year 763 637 Actual value of the plan's assets at the end of the year - - Net Liability to be recorded in the balance sheet at the end of the year 763 637 Income Statement at the end of the year Current service cost 70 62 Interest expense 19 16 Expected return on the plan's assets - - Prior service cost - - Cost (result) of Settlements / Curtailments / Special Cases (e.g. Consolidations, Splits, Terminations) 25 25 Expenditure to be entered in the income statement 114 102 Other Comprehensive Income (OCI) Amount entered in the OCI 37 6 Actuarial (profit) loss on liability due to financial assumptions 6 (6) Actuarial (profit) loss on liability due to demographic assumptions 0 - Actuarial (profit) loss on liability due to evidence 31 12 Cumulative amount entered in the OCI 116 78 Sensitivity Analysis The use of a discount rate higher by 0.5% would result in the actuarial liability being lower by 2% while the exact reverse assumption, i.e. the use of a discount rate lower by 0.5% would result in the actuarial liability being higher by 2%. The corresponding sensitivity tests for the expected salary increase, i.e. the use of an expected salary increase higher by 0.5% would result in the actuarial liability being higher by 2% while the exact reverse assumption, i.e. the use of an expected salary increase lower by 0.5% would result in the actuarial liability being lower by 2%. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 237 6.14 Leases – Right of Use Assets The right of use assets of the Group and the Company are analyzed as follows: Right-of-use assets GROUP COMPANY Transport Transport Buildings Means Total Buildings Means Total Balance as at 1 January 2023 227 412 640 9 279 288 Additions 548 439 987 314 291 604 Forex differences (8) 6 (2) 0 0 0 Depreciation for the year (279) (238) (517) (105) (159) (264) Forex differences of depreciation (0) (2) (2) 0 0 0 Book value as at 31 December 2023 488 616 1,105 218 410 628 Balance as at 1 January 2024 488 616 1,105 218 410 628 Additions 0 705 705 0 448 448 Forex differences (8) 4 (5) 0 0 0 Depreciation for the year (306) (364) (669) (105) (246) (351) Forex differences of depreciation 4 (1) 4 0 0 0 Book value as at 31 December 2024 179 961 1,140 113 612 726 The liabilities from leases at the Group and the Company level are analyzed as follows: Lease Liabilities GROUP COMPANY 31/12/2024 31/12/2023 31/12/2024 31/12/2023 Short-term Leasing Liabilities 541 542 346 260 Long-term Leasing Liabilities 628 586 405 383 Total Lease Liabilities 1,169 1,128 751 643 Leasing liabilities are payable as follows: Within the year 579 592 370 286 Within the second year 351 384 238 244 From 3 up to 5 years 306 239 184 162 After 5 years 0 1 0 0 Less: Discounting (67) (88) (41) (49) Total Lease Liabilities 1,169 1,128 751 643 6.15 Long-term and short-term loans The common bond loans of the Company as well as the long-term bank loans of its subsidiary company "FLEXOPACK POLSKA Sp. Zo.o", are denominated in Euros. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 238 The Group's long-term bank debt is based on floating 3-6-month Euribor rates and on fixed spreads. The Group's short-term bank debt of 804 thousand Euro is based on floating Wibor plus a spread due to borrowings denominated in the currency of Polish Zloty (PLN). The amounts of the long-term loans which are payable within a year starting from the balance sheet date are recorded as short-term liabilities, whereas the amounts payable at a later stage, are recorded as long- term ones. The Group does not possess any loans value at fair. The book values of the Group’s loans are estimated to approach their fair value and therefore the discount which would be used for the determination of the fair value is almost equivalent to the interest rates charged to the Group. Long-term and short-term liabilities from the Group’s and Company’s loans are analyzed as follows: GROUP COMPANY 31/12/2024 31/12/2023 31/12/2024 31/12/2023 Long-term debt Common bond loans 44,977 32,052 44,977 32,052 Long-term Bank Debt 5,295 6,230 0 0 50,272 38,281 44,977 32,052 Minus part of bond loans payable in the next period 6,148 4,861 6,148 4,861 Minus part of long-term bank debt payable in the next period 1,069 1,162 0 0 Total long-term debt 43,055 32,259 38,829 27,191 Short-term debt Bank debt 853 804 0 0 Factoring 40 52 0 0 Short-term portion of bond loans 6,148 4,861 6,148 4,861 Short-term portion of long-term bank debt 1,069 1,162 0 0 Total short-term debt 8,110 6,878 6,148 4,861 Total debt 51,165 39,137 44,977 32,052 Maturities of long-term debt 31/12/2024 31/12/2023 31/12/2024 31/12/2023 Up to 1 year 7,217 6,022 6,148 4,861 2 - 5 years 32,162 22,368 28,810 17,300 Over 5 years 10,893 9,891 10,019 9,891 Total 50,272 38,281 44,977 32,052 Weighted average interest rate charged on the results 4.55% 4.66% 4.91% 4.58% The common bond loans of the Company as well as the long-term bank loans of its subsidiary company "FLEXOPACK POLSKA Sp. Zo.o", are as follows. A. On June 9, 2022, the Company signed a Contract for the Coverage of a Common Bond Loan via a private placement, in accordance with the provisions of Law 4548/2018 and Law 3156/2003, as applicable, with FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 239 a total nominal value of 9,000,000 Euros and a duration of seven (7) years. The loan was covered by the Limited Liability Banking Company under the name "ALPHA BANK SOCIETE ANONYME". "ALPHA BANK SOCIETE ANONYME" was appointed as Payment Agent and Representative of the Bondholders. The proceeds from the above Common Bond Loan were used by the Company as follows: (a) an amount of 3,214,000 Euros for the repayment/refinancing of the Company's existing loan to Alpha Bank SA and (b) an amount of 5,786,000 Euros for the financing of working capital. B. On November 24, 2022, the Company signed a Contract for the Coverage of a Common Bond Loan, in accordance with the provisions of Law 4548/2018 and Law 3156/2003, as applicable, with a total nominal value of twelve million nine hundred and thirteen thousand and two hundred and two Euros (€ 12,913,202). The above loan was covered in its entirety on November 29, 2022 as follows: (a) on the one hand, with funds from the Recovery and Resilience Fund (RRF), by the amount of eight million seventy thousand seven hundred and fifty one Euros (€ 8,070,751), and (b) on the other hand, via "Eurobank Societe Anonyme" by the amount of four million eight hundred forty two thousand and four hundred fifty one Euros (€ 4,842,451). "Eurobank Societe Anonyme" was appointed Paying Agent and Representative of the Bondholders. The proceeds from the above Common Bond Loan were utilized by the Company to cover its needs along an envisaged investment plan. The Company was the implementing body of an eligible Investment Plan amounting to sixteen million one hundred forty one thousand and five hundred and three euros (€16,141,503), which falls under the Eligible Action "Extroversion" and aims at the capacity increase of the existing production unit of flexible plastic materials (films), located in Koropi (Tzima location), County of Attiki, Greece. The duration of the loan has been set at 15 years and the interest rate of the Recovery and Resilience Fund (RRF) loan has been arranged at 2.49%, fixed for the entire duration of the loan. C. The Company, following the decision of its Board of Directors dated 24/10/2024, signed on 13/11/2024 a Contract for the Coverage of a Common Bond Loan through private placement, in accordance with the provisions of Law 4548/2018 and Law 3156/2003, as in force, with a total nominal value of twenty million Euros (€20,000,000). The loan will be covered in its entirety by "National Bank of Greece", which was also appointed Payment Agent and Representative of the Bondholders. The proceeds from the above Common Bond Loan were used by the Company as follows: (a) for the full repayment of previous Common Bond Loans amounting 10,500,000 Euros, both of which were covered by "National Bank of Greece", and (b) for an amount of 9,500,000 Euros for the Company’s capital needs in terms of long-term working capital. The latter would allow for the Company to serve its business objectives and in particular its investment plan. D. The Company, following the decision of its Board of Directors dated 16/12/2024, signed on 19/12/2024 a Contract for the Coverage of a Common Bond Loan through private placement, in accordance with the provisions of Law 4548/2018 and Law 3156/2003, as in force, with a total nominal value of eight million FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 240 Euros (€8,000,000). The loan was covered in its entirety by "EUROBANK SA", which was also appointed Payment Agent and Representative of the Bondholders. The proceeds from the above Common Bond Loan were used by the Company as follows: (a) an amount of 892,890 Euros for the refinancing of an equal debt amount from a previous Common Bond Loan that had been covered by "EUROBANK ERGASIAS SA" and (b) for the coverage of the Company's working capital needs by an amount of 7,107,110 Euros. The aforementioned common bond loans have been granted from the banks without any guarantee and the Company has the right to proceed with an early repayment of the above loans without any penalty or other cost. The terms of the above bond loans include the obligation to preserve specific financial ratios such as (a) Net debt to EBITDA, (b) Total debt to EBITDA, (c) Bank debt to EBITDA, (d) earnings before interest, taxes, depreciation and amortization (EBITDA) to net interest plus principal of loans, (e) total liabilities to total equity. The subsidiary company "FLEXOPACK POLSKA Sp. Zo.o", has since 2020 entered into a long-term loan agreement for an amount of 2.682 million Euros with a banking institution based in Poland, with the aim of repaying the existing long-term loan to another bank and repaying the short-term loan towards the Company that the subsidiary had received for the implementation of its investment plan. Also the subsidiary company "FLEXOPACK POLSKA Sp. Zo.o", in November 2022, entered into an agreement concerning a long-term loan of 5.070 million Euros with a banking institution based in Poland. The above loan was utilized by the subsidiary company in order to finance its investment plan with the aim of increasing its production capacity. The loan was gradually disbursed until the end of 2023. It is noted that there are no defaults on the Group's bond loans, including the terms/covenants of the loan agreements, in accordance with the provisions of paragraphs 18-19 of IFRS 7. 6.15.1 Other long-term liabilities GROUP COMPANY Other long-term liabilities 31/12/2024 31/12/2023 31/12/2024 31/12/2023 Suppliers of fixed assets 2,123 2,324 748 1,346 2,123 2,324 748 1,346 FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 241 6.16 Other provisions GROUP COMPANY January 1st 2023 576 238 Additional provisions for the year 77 0 Non utilized provisions that have been reversed -137 0 Utilized provisions for the year 0 0 December 31st 2023 515 238 Additional provisions for the year 104 0 Non utilized provisions that have been reversed 0 0 Utilized provisions for the year 0 0 December 31st 2024 620 238 Analysis of provisions Provision for other taxes 235 235 Provision for leave not utilized 299 0 Other provisions 87 4 Total 620 238 Analysis of additional provisions for the year Provision for non-collected license 98 0 Other provisions 7 0 Total 104 0 6.17 Suppliers and other liabilities The Group’s and Company’s balances for the suppliers’ and other related liabilities accounts are analyzed as follows: GROUP COMPANY 31/12/2024 31/12/2023 31/12/2024 31/12/2023 Suppliers 24,405 21,205 17,798 16,190 Liabilities to associates 715 2,277 2,104 2,277 Customer prepayments 416 139 406 139 Sundry creditors 89 137 55 63 Dividend payable 189 0 189 0 Payable employee remuneration 765 820 606 537 Accrued expenses 1,703 1,205 885 648 Deferred income 0 18 0 18 Purchases under settlement 16 0 16 0 Social Security Funds 759 683 597 509 Other taxes, other than income tax 2,148 1,951 565 539 Total 31,205 28,435 23,221 20,921 FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY 6.18 Liabilities from income tax GROUP COMPANY 31/12/2024 31/12/2023 31/12/2024 31/12/2023 Income Tax 3,637 3,463 2,945 2,018 Difference of income tax prepayment 754 (1,110) 738 (1,080) Balance of income tax for previous year 220 1,037 220 1,037 4,611 3,390 3,904 1,975 The tax for the financial year 2024 is paid in a maximum of eight (8) equal monthly instalments, the first of which is paid until the last working day of the month following the deadline for submission of the tax declaration. The remaining seven (7) instalments must also be paid by the last working day of the seven (7) following months, which cannot extend beyond the subject tax year. 6.19 Turnover The Group’s and Company’s turnover is analyzed as follows: GROUP COMPANY 1/1- 31/12/2024 1/1- 31/12/2023 1/1- 31/12/2024 1/1- 31/12/2023 Income from sale of merchandise 18,774 54,068 16,997 17,049 Income from sale of products 133,708 95,081 97,034 90,518 Income from sale of other inventories 872 1,073 492 905 Income from provision of services 3,238 2,869 4,562 4,049 156,593 153,090 119,085 112,521 st st Annual Financial Report of financial year 2024 (January 1 – December 31 2024) 242 Amounts in thousands euro FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 243 6.20 Analysis of Expenses per category The analysis of the Group’s expenses per category is as follows: GROUP 1/1-31/12/2024 1/1-31/12/2023 Expense per Category Cost of Goods Sold Distri- bution Expenses R&D Expenses Admin- istrative Expenses Total Cost of Goods Sold Distri- bution Expenses R&D Expenses Admin- istrative Expenses Total Remuneration & other employee benefits 15,489 3,422 348 4,826 24,085 13,276 2,974 309 4,006 20,565 Third party fees & expenses 881 1,530 12 1,346 3,769 674 875 11 1,087 2,648 Third party benefits (energy, insurance, maintenance etc.) 11,776 1,522 35 419 13,752 10,221 1,327 24 406 11,977 Taxes - Duties 53 9 1 199 263 53 9 1 178 241 Various expenses (transport, export expenses, etc.) 2,018 9,631 330 567 12,546 1,803 8,302 390 597 11,092 Depreciations of fixed assets 5,935 87 67 61 6,150 4,752 134 57 63 5,007 Amortization of intangible assets 57 39 186 51 333 115 57 189 54 415 Amortization of rights-of- use 302 193 10 164 669 243 181 7 86 517 Provision for staff indemnity 0 9 0 80 89 0 7 0 64 71 Cost of inventories recognized as an expense 80,898 0 789 0 81,687 80,144 0 817 0 80,962 Total 117,408 16,442 1,779 7,713 143,342 111,282 13,866 1,806 6,541 133,495 Own-production of assets (152) 0 0 0 (152) (187) 0 0 0 (187) Total 117,256 16,442 1,779 7,713 143,190 111,095 13,866 1,806 6,541 133,308 The analysis of the Company’s expenses per category is as follows: COMPANY 1/1-31/12/2024 1/1-31/12/2023 Expense per Category Cost of Goods Sold Distri- bution Expenses R&D Expenses Admin- istrative Expenses Total Cost of Goods Sold Distri- bution Expenses R&D Expenses Admin- istrative Expenses Total Remuneration & other employee benefits 10,424 1,035 348 4,118 15,924 9,006 955 309 3,445 13,715 Third party fees & expenses 502 502 12 451 1,467 461 400 11 426 1,298 Third party benefits (energy, insurance, maintenance etc.) 8,762 296 35 326 9,419 7,768 388 24 331 8,510 Taxes - Duties 53 7 1 42 103 52 8 1 41 102 Various expenses (transport, export expenses, etc.) 1,042 5,600 330 564 7,536 914 4,622 390 596 6,522 Depreciations of fixed assets 4,087 73 67 55 4,282 3,295 120 57 59 3,531 Amortization of intangible assets 57 39 186 51 333 115 57 189 54 415 Amortization of rights-of-use 63 135 10 142 351 52 134 7 70 264 Provision for staff indemnity 0 9 0 80 89 0 7 0 64 71 Cost of inventories recognized as an expense 66,473 0 684 0 67,158 65,163 0 664 0 65,827 Total 91,463 7,696 1,674 5,829 106,661 86,827 6,691 1,653 5,085 100,256 Own-production of assets (152) 0 0 0 (152) (162) 0 0 0 (162) Total 91,311 7,696 1,674 5,829 106,509 86,665 6,691 1,653 5,085 100,093 FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY 6.21 Employee Benefits The Group’s and Company’s employee benefits are analyzed as follows: GROUP COMPANY Employee benefits 1/1- 31/12/2024 1/1- 31/12/2023 1/1- 31/12/2024 1/1- 31/12/2023 Wages and daily wages and benefits 16,563 14,245 9,920 8,595 Social security expenses 3,114 2,491 2,343 1,882 End of service indemnities 31 38 31 38 Other employee benefits 1,907 1,648 1,163 1,061 Stock options 94 51 94 51 Total 21,708 18,473 13,552 11,627 Employed staff as at 31/12/24. Group 563 individuals. Company 385 individuals. Employed staff as at 31/12/23. Group 533 individuals. Company 366 individuals. GROUP COMPANY Benefits towards Management 1/1- 31/12/2024 1/1- 31/12/2023 1/1- 31/12/2024 1/1- 31/12/2023 Remuneration of Board of Directors 2,217 2,215 2,213 2,212 Benefits in kind 230 215 230 215 Earnings distribution from year 2023 450 300 450 300 Stock options 212 103 212 103 Total 3,109 2,833 3,106 2,829 Fees and benefits of executive BoD members 2,515 2,285 2,511 2,282 Fees and benefits of non-executive BoD members 594 547 594 547 Total 3,109 2,833 3,106 2,829 st st Annual Financial Report of financial year 2024 (January 1 – December 31 2024) 244 Amounts in thousands euro FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY 6.22 Other Operating Income and Expenses The Group’s and Company’s other operating income and expenses are analyzed as follows: GROUP COMPANY 1/1- 31/12/2024 1/1- 31/12/2023 1/1- 31/12/2024 1/1- 31/12/2023 Other operating income Income from provision of services to affiliated companies 0 0 135 159 Income from previous years 6 320 6 0 Various indemnities 156 62 77 62 Profit from sale of fixed assets 23 20 1 20 Other income 103 53 17 15 Total 288 455 236 256 Other operating expenses Provisions for expected credit losses 48 37 0 17 Provisions for doubtful customers 0 44 0 0 Losses from sale and/or write-off of assets 6 1 0 0 Expenses from previous years 25 231 25 37 Other expenses 108 91 41 17 Total 187 404 66 72 6.23 Financial Income and Expenses The Group’s and Company’s financial income and expenses are analyzed as follows: GROUP COMPANY 1/1- 31/12/2024 1/1- 31/12/2023 1/1- 31/12/2024 1/1- 31/12/2023 Financial income Dividends receivable 150 150 150 150 Interest receivable 328 251 301 251 Income from interest rate Swaps 259 0 259 0 Other financial income 3 12 0 0 Total 741 413 711 401 Financial expenses Interest and expenses of bank loans 1,787 1,608 1,590 1,452 Interest expenses from Leases (IFRS 16) 69 51 39 29 Other financial expenses 131 74 53 46 Total 1,987 1,733 1,681 1,527 st st Annual Financial Report of financial year 2024 (January 1 – December 31 2024) 245 Amounts in thousands euro FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY 6.24 Other Financial Results The Group’s and Company’s financial results are analyzed as follows: GROUP COMPANY Other Financial Results 1/1- 31/12/2024 1/1- 31/12/2023 1/1- 31/12/2024 1/1- 31/12/2023 Foreign exchange differences from valuation of receivables and liabilities in foreign currency profit / (losses) 222 (339) 378 (481) Profit / (Losses) from valuation of foreign exchange future contracts 0 65 0 65 Profit / (Losses) from risk hedging 561 (275) 561 (275) Total 783 (549) 939 (691) The basic foreign exchange rates as of 31/12/2024 are the following: Exchange rates versus Euro (currency units per 1 Euro) 31/12/2024 31/12/2023 US dollar (USD) 1.0389 1.1050 Polish zloty (PLN) 4.2750 4.3395 Australian dollar (AUD) 1.6772 1.6263 Pound sterling (GBP) 0.82918 0.86905 6.25 Income Tax The income tax for the year 2024 has been calculated according to a tax rate of 22%. The corresponding rate for the year 2023 amounted to the same level, i.e. 22%. It is noted that the effective final tax rate differs from the nominal. There are several factors influencing the effective tax rate, the most important of which is the non-tax deduction of certain expenses, the differences in depreciation rates between the useful lives of the fixed assets and the rates set in the income tax and the possibility of tax-free rebates and tax- reserves. The income tax of the Group and the Company is analyzed as follows: Income Tax GROUP COMPANY 1/1- 31/12/2024 1/1- 31/12/2023 1/1- 31/12/2024 1/1- 31/12/2023 Income Tax 3,637 3,463 2,945 2,018 Deferred tax (Note 6.12) (249) 492 (4) 480 Total income tax 3,388 3,956 2,941 2,498 st st Annual Financial Report of financial year 2024 (January 1 – December 31 2024) 246 Amounts in thousands euro FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Following, an analysis and reconciliation of the nominal and effective tax rate is presented. 1/1- 31/12/2024 1/1- 31/12/2023 1/1- 31/12/2024 1/1- 31/12/2023 Earnings before taxes (IFRS) 14,063 19,057 12,715 10,795 Tax Rate 22% 22% 22% 22% Income tax based on effective tax rate 3,094 4,192 2,797 2,375 Tax corresponding to: Tax free income (33) (33) (33) (33) Subsidiaries' loss for which no deferred tax was recognized 195 96 0 0 Proportion of Results by associate companies (224) (240) 0 0 Non deductible expenses 175 105 176 155 Results of subsidiaries taxed with a different tax rate (17) 65 0 0 Elimination of intra-company profit 439 (229) 0 0 Tax exemption (240) 0 0 0 Tax expense in the income statement 3,388 3,956 2,941 2,498 Weighted tax rate 24.09% 20.76% 23.13% 23.14% 6.26 Contingent Receivables - Liabilities Contingent liabilities are not recognized in the financial statements but are disclosed, unless the probability of outflow of resources that incorporate financial benefits is minimal. 6.26.1 Information regarding assumed liabilities GROUP Η ΕΤΑΙΡΕΙΑ 31/12/2024 31/12/2023 31/12/2024 31/12/2023 Letters of bank guarantees for the account of subsidiaries 6,203 6,203 6,203 6,203 Letters of guarantees to local authorities for the account of subsidiaries 1,760 0 1,760 0 7,963 6,203 7,963 6,203 There are no litigious claims or differences under dispute of the Company or its subsidiaries as well as decisions by courts or arbitration bodies that could have a significant impact on the Company’s and Group’s financial position or operation. st st Annual Financial Report of financial year 2024 (January 1 – December 31 2024) 247 Amounts in thousands euro FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY 6.26.2 Tax un-audited financial years FLEXOPACK S.A. 2019-2024 FLEXOPACK POLSKA Sp. Zo.o 2019-2024 FLEXOPACK TRADE AND SERVICES DOO BEOGRAD 2019-2024 FLEXOPACK INTERNATIONAL LIMITED-CYPRUS 2019-2024 FLEXOPACK PTY LTD 2019-2024 FLEXOPACK PROPERTIES PTY LTD 2019-2024 FLEXOPACK ΝΖ LIMITED 2019-2024 FLEXOPACK TRADE AND SERVICES UK LIMITED 2019-2024 FLEXOPACK FRANCE 2019-2024 FLEXOPACK USA, INC. 2020-2024 FLEXOPACK IRELAND 2021-2024 INOVA S.A. 2019-2024 VLACHOS BROS S.A. 2019-2024 In application of the relevant tax provisions: a) paragraph 1 of article 84 of Law 2238/1994 (unaudited cases concerning income tax), b) paragraph 1 of article 57 of Law 2859/2000 (unaudited cases related to VAT) and c) paragraph 5 of article 9 of Law 2523/1997 (penalties imposed for income tax cases), the right of the Greek State to impose any tax with regard to the fiscal years up to 2018 including, has been waived until 31/12/2024, with the exception of special or extraordinary provisions which may provide for a longer waiving period and under the respective conditions which these provisions stipulate. Tax compliance report With the article 82 §5 of Law 2238/94, beginning from year 2011, and in a later stage with the article 65A of Law 4174/2013, effective from year 2014, the Certified Auditors and the auditing firms performing mandatory audits in societe anonyme companies are obliged to issue a Tax Compliance Report with regard to the application of tax provisions in tax objects. The particular report is submitted to the audited company and via electronic means to the Ministry of Finance. For the years 2011 – 2023, the Company as well as the associate companies INOVA S.A. PLASTICS AND IRON and VLACHOU BROS S.A. received a relevant Report, without any reservation with regard to the tax objects which were audited. With the article 56 of Law 4410/3.8.2016 for the years from 1.1.2016, the issuance of a Tax Compliance Report is no longer mandatory (only optional). The Company's tax obligations for the tax years beginning from 2019 and up to 2024 have not become final and irrevocable, since no tax audit has been carried out. For the fiscal year 2024, the Company and its associate companies have been placed under the above mentioned tax audit of the Certified Auditors Accountants and from the relevant Tax Compliance Report which is expected to be granted, it is anticipated that no additional as well as material tax burdens will emerge. According to the Ministerial Decision (POL) 1006/05.01.2016, the companies for which a tax certificate “without reservation” has been issued, are not being excluded from the obligation concerning an ordinary st st Annual Financial Report of financial year 2024 (January 1 – December 31 2024) 248 Amounts in thousands euro FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 249 tax audit from the pertinent tax authorities. As a result, the tax authorities may proceed with their own tax audit and impose any penalties and additional taxes. 6.26.3 Information regarding contingent receivables There are no contingent receivables that are of significance to report in the Company’s and Group’s financial statements. 6.27 Current liens There are no encumbrances on the fixed assets of the parent company. On the fixed assets of the Group there is a lien written for a banking institution based in Poland amounting to 10.605 million Euros on the production facilities of the subsidiary company "FLEXOPACK POLSKA Sp. Zo.o", which has been registered as collateral for the repayment of long-term loans granted to this subsidiary. 6.28 Auditors’ fees The total fees of the legal auditors of the Company and the Group are the following: GROUP COMPANY 1/1- 1/1- 1/1- 1/1- 31/12/2024 31/12/2023 31/12/2024 31/12/2023 Audit Fees 210 154 51 48 210 154 51 48 The permitted non-audit services provided to the Company and its subsidiaries during the period under consideration amounted to 1,750 Euro. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY 6.29 Transactions with related parties The company’s transactions with related parties, according to IAS 24, are as follows. 1/1/-31/12/2024 COMPANY Sales of goods and services Purchases of goods and services Receivables Liabilities Subsidiaries FLEXOPACK POLSKA Sp. Zo.o 7,228 8,489 5,982 1,389 FLEXOPACK TRADE AND SERVICES DOO BEOGRAD 335 0 104 0 FLEXOPACK PTY LTD- AUSTRALIA 22,249 2 13,969 0 FLEXOPACK TRADE AND SERVICES UK LIMITED 14,150 0 5,689 0 FLEXOPACK IRELAND 749 0 445 0 FLEXOPACK FRANCE 1,552 0 171 0 FLEXOPACK USA 17,258 0 6,560 0 FLEXOPACK ΝΖ LIMITED 266 0 63 0 63,787 8,492 32,983 1,389 Related/Associate Companies ΙΝΟVA SA 167 1 6 0 VLAHOU BROS SA 4,049 1,216 1,604 700 OTHER RELATED PARTIES 0 272 0 15 4,215 1,490 1,610 715 Grand Total 68,002 9,981 34,593 2,104 Benefits towards management and executives 1/1/- 31/12/2024 1/1/- 31/12/2023 Transactions and fees of senior executives and members of the management 4,041 3,669 Receivables from senior executives and management 28 0 Liabilities towards senior executives and management 122 124 Notes: It is also noted: 1. No other transactions related to the Company parties exist according to the provisions of the International Accounting Standard 24 apart from the above mentioned. 2. No loans or any other credit facilitations, except for current transactions, have been granted to the Board members or other senior executives of the Company and their families. 3. It is specifically noted for purposes of completeness that with regard to the natural persons - members of the Board of Directors and executives of the Company, the above remuneration includes also fees st st Annual Financial Report of financial year 2024 (January 1 – December 31 2024) 250 Amounts in thousands euro FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 251 granted of 450 thousand Euros from the profit of the financial year 2023 paid to the members of the Board of Directors (excluding the independent non-executive members), as well as the stock option benefits mentioned in Point 2 of Section A of this Report. With the exception of the above, there are no other transactions between the Company and the executives and members of the Board of Directors. 4. There were no changes in the transactions between the Company and its related parties that could have a material impact on the Company's financial position and performance for the period 1/1/2024- 31/12/2024. 5. The Company has provided a guarantee to a credit institution based in Poland in favor of its subsidiary company "FLEXOPACK POLSKA Sp. Zo.o" amounting to 6.138 million Euros to ensure the repayment of loans that have been granted to the subsidiary company. 6. The Company has also provided a guarantee towards a banking institution in favor of its subsidiary "FLEXOPACK PTY LTD" based in Australia, with a maximum guarantee amount of approximately 65,000 Euros. 7. The Company has provided a guarantee for good execution to Lebanon County, Pennsylvania, in favor of its subsidiary, “FLEXOPACK USA INC.” which is based in the United States, for the amount of 1,882,903.68 US Dollars (USD). 8. The subsidiary “FLEXOPACK INTERNATIONAL LIMITED” has granted 2 loans with duration of 20 years and for a total amount of sixteen million (16,000,000) Australian Dollars (AUD) to its subsidiary “FLEXOPACK PROPERTIES PTY LTD” based in Brisbane, Australia, in order for the latter to proceed with this financing in the construction of a new industrial building in Australia. 9. The transactions described above have been carried out under normal market conditions and do not contain any exceptional, favorable or special features, which would make necessary additional analysis per related party. 10. There is no separate transaction that is assessed as significant, within the meaning of Circular number 45/2011 of the Hellenic Capital Market Commission. 11. The Company's transactions and outstanding balances with subsidiaries have been eliminated from the consolidated financial statements. The company's transactions with related parties within the framework of IAS 24 in the previous year 2023 are as follows. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 252 1/1/-31/12/2023 COMPANY Sales of goods and services Purchases of goods and services Receivables Liabilities Subsidiaries FLEXOPACK POLSKA Sp. Zo.o 7,136 9,383 1,559 2,277 FLEXOSYSTEMS Ltd -Belgrade 375 3 122 0 FLEXOPACK PTY LTD- AUSTRALIA 18,674 0 10,279 0 FLEXOPACK TRADE AND SERVICES UK LIMITED 10,408 0 3,273 0 FLEXOPACK IRELAND 599 0 320 0 FLEXOPACK DENMARK 0 0 21 0 FLEXOPACK FRANCE 1,255 0 287 0 FLEXOPACK USA 17,249 0 6,268 0 FLEXOPACK ΝΖ LIMITED 91 0 0 0 55,787 9,386 22,130 2,277 Related/Associate Companies ΙΝΟVA SA 237 2 10 0 VLAHOU BROS SA 3,444 974 1,526 449 OTHER RELATED PARTIES 0 128 0 0 3,681 1,104 1,536 449 Grand Total 59,468 10,490 23,666 2,726 Benefits towards management and executives 1/1/- 31/12/2023 1/1/- 31/12/2022 Transactions and fees of senior executives and members of the management 3,669 2,993 Receivables from senior executives and management 0 0 Liabilities towards senior executives and management 124 129 FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Company's transactions with related parties GROUP COMPANY 1/1/- 31/12/2024 1/1/- 31/12/2023 1/1/- 31/12/2024 1/1/- 31/12/2023 Sales of goods and services To subsidiaries 0 0 63,787 55,787 To associates 4,065 3,531 4,065 3,531 4,065 3,531 67,852 59,318 Purchases of goods and services From subsidiaries 0 0 8,492 9,386 From associates 1,217 976 1,217 976 From other related parties 272 128 272 128 1,490 1,104 9,981 10,490 Receivables From subsidiaries 0 0 32,983 22,130 From associates 1,610 1,536 1,610 1,536 1,610 1,536 34,593 23,666 Liabilities To subsidiaries 0 0 1,389 2,277 To associates 700 449 700 449 To other related parties 15 0 15 0 715 449 2,104 2,726 Income from dividends From subsidiaries 0 0 0 0 From associates 150 150 150 150 150 150 150 150 6.30 Earnings per share Earnings per share are analyzed as follows: Earnings per share GROUP COMPANY 1/1- 31/12/2024 1/1- 31/12/2023 1/1- 31/12/2024 1/1- 31/12/2023 Earnings after taxes corresponding to shareholders of the parent (1) 10,675 15,101 9,774 8,297 Weighted number of shares outstanding (2) 11,772.774 11,744.847 11,772.774 11,744.847 Basic earnings per share (Euro per share) (1)/(2) 0.9067 1.2857 0.8302 0.7064 The Company's share capital consists of 11,795,024 common fully paid-up shares. The Company currently holds 96,450 treasury shares, which correspond to 0.81% of the total shares of the Company. (Note 6.11.2) st st Annual Financial Report of financial year 2024 (January 1 – December 31 2024) 253 Amounts in thousands euro FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Adjusted (diluted) earnings per share GROUP COMPANY 1/1- 31/12/2024 1/1- 31/12/2023 1/1- 31/12/2024 1/1- 31/12/2023 Earnings after taxes corresponding to shareholders of the parent (1) 10,675 15,101 9,774 8,297 Weighted average number of shares outstanding 11,772.774 11,744.847 11,772.774 11,744.847 Number of stock options 99.175 47.208 99.175 47.208 Weighted average number of shares for the calculation of adjusted earnings per share (2) 11,871.949 11,792.055 11,871.949 11,792.055 Adjusted (diluted) earnings per share (Euro per share) (1)/(2) 0.8992 1.2806 0.8233 0.7036 Adjusted (diluted) earnings per share are calculated by adjusting the weighted average number of ordinary shares outstanding, with the effects of all potential securities convertible into ordinary shares. The stock option plan (Note 6.34) is the only category of potential securities convertible into common shares that the Company currently possesses. For the purposes of calculating diluted earnings per share, the exercise of options is taken for granted. To the existing weighted number of shares outstanding, the difference between the number of ordinary shares deemed to have been issued in the exercise of the rights and the number of ordinary shares that would have been issued at fair value is added. The number of ordinary shares that would have been issued at fair value is calculated by dividing the hypothetical cash proceeds from the stock options by the average market price of the ordinary shares during the reporting period. 6.31 Dividends The Annual Ordinary General Meeting of the Company's Shareholders, on 21 st of June 2024, approved the distribution (payment) towards the shareholders of a dividend amounting to 1,765,916.10 Euros (gross amount), from the earnings of the year 2023 (01.01.2023-31.12.203), i.e. an amount of 0.15 Euros per share (gross amount). Following the dividend tax of 5% that was withheld, the amount of dividend paid settled at 0.1425 Euros per share. The Company’s Board of Directors taking into account the results of the year 2024, the broader capital needs of the Company, as well as the wider financial environment which the Company operates in, intends to propose to the Annual General Meeting of Shareholders the distribution of a dividend amounting to 1,942,507.71 Euros (gross amount) or 0.165 Euros per Company share. As the distribution of the dividend requires the approval of the general meeting of shareholders, no relevant obligation has been recognized in the financial statements for the year 2024. st st Annual Financial Report of financial year 2024 (January 1 – December 31 2024) 254 Amounts in thousands euro FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 255 6.32 Fair value measurement The Group and the Company use the following hierarchy to identify and disclose fair values of financial assets using the following valuation method: Level 1: fair values are determined by reference to published active money market transactions. Level 2: fair values are determined using measurement techniques for which all parameters that have a material impact on the fair value of the asset are supported by observable market prices (directly or indirectly). Level 3: fair values are determined using measurement techniques for which the parameters that have a significant impact on the fair value recorded are not supported by observable market prices. The table below shows the hierarchy of the fair value of the assets and liabilities of the Group and the Company. GROUP COMPANY 31/12/2024 31/12/2023 31/12/2024 31/12/2023 Fair Value Hierarchy Other long-term liabilities Interest Rate Swaps 561 0 561 0 Level 3 Capital reserves Stock options 400 94 400 94 Level 3 The Group borrows at a floating interest rate and in order to hedge the respective interest rate risk, it utilizes interest rate swaps. In this context, the Group exchanges each time the difference between amounts corresponding to the agreed fixed interest rate and amounts corresponding to the Euribor related floating nominal interest rate. From the valuation of the above contracts, on 31/12/2024, a capital gain of 561 thousand Euros emerged and was recorded in other long-term receivables and as a credit entry into the other financial results. The fair values of the Group's financial assets and liabilities, which consist of cash, receivables from customers, loans and other receivables, liabilities to suppliers and related liabilities and lease liabilities, do not differ significantly from their book values, mainly due to of their short-term nature. The Group's bank loans have a floating interest rate and therefore their fair values do not differ significantly from their book values. 6.33 Reconciliation of cash flows from financing activities Based on the amended IAS 7, the reconciliation of debt liabilities between the statement of Financial Position and the financing activities of the statement of cash flows is presented below: FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY THE GROUP 31.12.2023 1/1/-31/12/2024 31.12.2024 Statement of financial position Collections Cash flow statement Payments Cash flow statement Transfers Statement of financial position Long-term debt liabilities 32,259 28,227 -16,237 -1,194 43,055 Short-term liabilities 6,879 673 -635 1,194 8,110 39,137 28,900 -16,872 0 51,165 THE COMPANY 31.12.2023 1/1/-31/12/2024 31.12.2024 Statement of financial position Collections Cash flow statement Payments Cash flow statement Transfers Statement of financial position Long-term debt liabilities 27,191 28,000 -15,075 -1,287 38,829 Short-term liabilities 4,861 0 0 1,287 6,148 32,052 28,000 -15,075 0 44,977 THE GROUP 31.12.2022 1/1/-31/12/2023 31.12.2023 Statement of financial position Collections Cash flow statement Payments Cash flow statement Transfers Statement of financial position Long-term debt liabilities 27,674 10,666 -4,638 -1,442 32,259 Short-term liabilities 5,400 230 -194 1,442 6,879 33,073 10,896 -4,832 0 39,137 THE COMPANY 31.12.2022 1/1/-31/12/2023 31.12.2023 Statement of financial position Collections Cash flow statement Payments Cash flow statement Transfers Statement of financial position Long-term debt liabilities 25,552 7,000 -4,361 -1,000 27,191 Short-term liabilities 3,861 0 0 1,000 4,861 29,412 7,000 -4,361 0 32,052 6.34 Establishment of a share distribution Program to the members of the Company's Board of Directors, managers and other executives, in the form of a Stock Option Plan The Board of Directors of the Company, during its meeting on June 12th, 2024 and following the authorization provided by the Annual Ordinary General Meeting of shareholders on June 16 th , 2023, proceeded to establish a new plan for distribution of shares to the members of the Board of Directors, the managers and top executives of the Company, in the form of stock options (rights) to acquire shares. The above are in accordance with the current regulatory framework and specifically with the provisions of article 113 of Law 4548/2018. The maximum number of shares that can be granted under the above stock option plan is 83,400 shares. st st Annual Financial Report of financial year 2024 (January 1 – December 31 2024) 256 Amounts in thousands euro FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 257 The plan consists of granting stock options to the participants, in order for the latter to acquire shares of the Company through their participation in a share capital increase at a fixed offering price, set at three (3.00) Euros per stock option. June 30th, 2026 was set as the maturity date of the rights. The exercise of stock options and the deposit that must be made by the beneficiary of these rights will take place from 30.06.2026 to 20.07.2026. The Company will notify in time the beneficiaries of the corresponding bank account of the Company. In order to exercise the rights, a prior written notification of the beneficiary's intention to exercise the relevant right is required by March 31 st , 2026, i.e. three (3) months before the above maturity date. In accordance with the article 113, paragraph 3 of Law 4548/2018 after the exercise of stock options by the participants, the Board of Directors will issue and distribute the shares to the beneficiaries and will take a respective decision in relation to the Company's share capital increase by an amount equivalent to the value emerging from the rights that have been exercised. The Board of Directors will also take a relevant decision with regard to the certification of payment of the Company's share capital increase. The above decision was registered in the General Electronic Commercial Registry (GEMI) on 17.06.2024 under no. 3306748. With the decision of the Company's Board of Directors dated 20/06/2024, the beneficiaries were defined in accordance with the specific provisions of the Plan and the options were granted corresponding to 83,400 shares of the Company. The evolution of exercise of the Stock Option Plan of the Company, in accordance with the current share distribution programs established and implemented by the Company, is depicted in the following Table. Stock Option Plan Initial balance During the period Ending balance Period of the plan Granting date Maturity date Exercise period Exercise price Options at beginning of year Options granted Options matured Options subject to performance Options granted but not matured Options subject to retention 10.07.2023- 30.9.2025- 30.09.2025 14.07.2023 30.09.2025 20.10.2025 3 ΕΥΡΩ 75,400 - - 75,400 12.06.2024- 30.06.2026- 30.06.2026 20.06.2024 30.06.2026 20.07.2026 3 ΕΥΡΩ - 83,400 - - 83,400 - Total 75,400 83,400 - - 158,800 - It is noted that the burden on the Company's financial results for the financial year 2024 from the above plans amounted to EUR 307 thousand, of which EUR 264 thousand concerned members of the Board of Directors and executives of the Company, whereas EUR 43 thousand concerned other members of the Company’s personnel. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 258 6.35 Events after the reporting date of the financial statements Other than the above, there are no significant events after the reporting date of the financial statements, which concern either the Group or the Company, and whose disclosure is required by the International Financial Reporting Standards (IFRS). Koropi, 28/4/2025 THE CHAIRMAN THE CHIEF EXECUTIVE THE CHIEF FINANCIAL THE HEAD OF THE BOARD OFFICER OFFICER ACCOUNTANT GEORGIOS S. STAMATIOS S. ANASTASIOS A. ZOIS P. GINOSATIS GINOSATIS LYBEROPOULOS ZAVERDINOS ID NO./ΑΕ 153990 ID NO./Σ.500301 ID NO./Χ.094106 ID NO./AZ 032773 REG. NO. 3544/99 REG. NO. 0078997 CHAPTER 5: Online availability of financial information In accordance with the provisions of Decision 12A/889/31.08.2020 of the Board of Directors of the Hellenic Capital Market Commission, it is hereby notified that the Annual Financial Statements of the Group and the Company, the Audit Report of the Statutory Auditor and the Management Report of the Board of Directors of the Company as well as the annual financial statements and the audit certificates of the Statutory Auditor of the companies included in the consolidated financial statements have been uploaded on the internet at www.flexopack.com . FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 259 APPENDIX A: Report of the Audit Committee for the year 2024 Report of the Activities of the Audit Committee of the Societe Anonyme “FLEXOPACK PLASTICS SA” for the year 2024 To the Ordinary General Meeting of Shareholders of the Company of the year 2025 Koropi, 15-03-2025 Introduction Dear Shareholders, In our capacity as members of the Audit Committee of the Company under the name “FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY” (hereinafter the "Company"), we submit the report of the activities of the Audit Committee for the year 2024 (1.1.2024 – 31.12.2024). The report was prepared in accordance with the provisions of article 44 of Law 4449/2017, as in force and presents in a concise form the manner by which the Committee has fulfilled its responsibilities. The Audit Committee was elected by the Ordinary General Meeting of Shareholders of 25.06.2021, constitutes an independent joint committee and consists of three (3) members, of which one (1) member comes from the independent non-executive members of the Board of Directors and two (2) members are third parties, non-members of the Board of Directors. The Audit Committee during the year 2024 consisted of the following members: (a) Mr. Dimitris Panagotas, non-member of the Board of Directors (third party), Chairman of the Audit Committee. (b) Ms. Aliki Benroubi, independent non-executive Member of the Board of Directors, Member of the Audit Committee. (c) Mr. Nikolaos Vlachos, non-member of the Board of Directors (third party), Member of the Audit Committee. During the fiscal year 2024, the Committee convened twelve (12) times and discussed all issues related to its responsibilities, in the presence of all of its members and decisions were taken unanimously. Key executives and the external Certified Auditor - Accountant of the Company participated in those meetings wherever it was deemed appropriate. The Committee operated in full compliance with the applicable legislative and regulatory framework as well as with its operating regulations approved by the Board of Directors. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 260 Purpose and responsibilities The primary purpose of the Audit Committee is to support the Board of Directors in its tasks related to the integrity of financial information, the internal control system and the supervision of the mandatory regular audit of the Company's separate and consolidated financial statements. Within its remit, the Audit Committee: (a) Informs the Board of Directors of the audited entity about the outcome of the statutory audit and depending on the case about the outcome deriving from the submission of the Sustainability Reports. The Committee also explains how the statutory audit and the verified submission of the Sustainability Reports contributed to the integrity of the financial information and what the role of the Audit Committee was along that process; (b) Monitors the financial reporting process and, where applicable, the sustainability reporting process, including the electronic reporting procedure as provided by the article 154B of Law 4548/2018, and the procedure carried out by the Company in order to specify and verify the information submitted in accordance with the sustainability reporting standards under article 154A of Law 4548/2018. The Committee also submits recommendations or proposals to ensure the integrity of the process; (c) Monitors the mandatory audit of the annual and consolidated financial statements and, where applicable, ensuring the submission of the annual and consolidated sustainability report and, in particular, the related performance, taking into account any findings and conclusions of the competent authority in accordance with paragraph 6 of Article 26 of Regulation (EU) No. 537/2014; (d) Reviews and monitors on a constant basis the independence of statutory auditors or audit firms (both in relation to the audit of financial statements and with regard to the verification of sustainability reports) in accordance with the articles 21, 22, 23, 26 and 27 of Law 4419/2017, articles 12 and 41 of Law 5164/2024, as well as article 6 of Regulation (EU) No. 537/2014 and in particular the appropriateness of the provision of non-audit services to the audited entity in accordance with article 5 of Regulation (EU) No. 537/2014; (e) Is responsible for the selection process of certified public accountants or audit firms and proposes the statutory auditors or audit firms to be appointed; (f) Monitors the effectiveness of the internal control, quality assurance and risk management systems of the Company and, where appropriate, of its Internal Control Department, regarding the financial information of the audited entity. Moreover, where applicable, it deals with the submission of sustainability reports of the Company, including the relevant electronic reporting procedure that is provided by the article 154B of Law 4548/2018, without violating the independence of this entity. Activities of the Audit Committee The issues the Committee dealt with -during the year 2024 as well as until the preparation date of the present Financial Report during the year 2025- by area of field of interest were the following: FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 261 A. Mandatory external audit - Financial information procedure In the field of external control and financial information procedure, the Committee has taken the following steps: (a) Was informed by the Chief Financial Officer of the financial statements of the Company and the Group for the year ended 31 December 2023 and of the principal matters concerning the Financial Management in the preparation of the financial statements; (b) Was informed of the accounting principles and policies applicable to the preparation of the financial statements, as well as of the consolidation basis and measurement methods used for the assets and liabilities contained in the financial statements; (c) Reviewed the financial statements of the Company and the Group for the year 2023 (01.01.2023- 31.12.2023) before their approval by the Board of Directors and evaluated these financial statements in terms of their accuracy and completeness; (d) Ascertained the reconciliation of the financial statements with the legally binding content and framework of their preparation and proposed their approval; (e) Briefed the Board of Directors on the issues arising from the statutory audit, the contribution of the statutory audit to the quality and integrity of financial information and the role of the Audit Committee in this procedure; (f) Verified the compliance with the rules of disclosure of the financial statements, as well as the possibility of an immediate, permanent and free-of-charge access to this information; (g) Was briefed by the Certified Public Accountant on the most important issues of the audit for the year 2023, the risks that were assessed as the most important ones and on the available options to deal with those risks, and was informed about the final draft of the Audit Report for the year ended 31 December 2023, (h) Received knowledge about the supplementary report of the Certified Public Accountants provided for in Article 11 of European Union (EU) Regulation 537/2014 on the financial statements of the Company and the Group; (i) Submitted a proposal to the Annual Ordinary General Meeting of the Company's Shareholders for the re-election of the Audit Company under the name "Grant Thornton Societe Anonyme SA" for the performance of the statutory audits of the annual and semi-annual financial statements for the year 2024, (j) Was informed by the Certified Public Accountant regarding the procedure and methodology to be followed during the audit of the semi-annual and annual financial statements for the year 2024, with the planning and schedule of the audit, as well as for the particular procedures to be followed, (k) Confirmed the impartiality, objectivity, independence and integrity of the external auditors in accordance with the Code of Professional Ethics of the International Federation of Accountants, Regulation (EU) 537/2014 and Law 4449/2017, as well as the non-provision of any external directive, guidance or recommendation by the Management of the Company, FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 262 (l) Was informed by the Certified Public Accountant about the audit approach of the review of the interim financial statements of the first half of the year 2024 and acquired knowledge with regard to the important issues of the audit review, (m) reviewed the financial statements of the Company and the Group for the first half of 2024 and evaluated their accuracy and completeness, (n) supervised the correct and timely disclosure to the investment community of corporate announcements related to financial information, (o) reviewed all services provided by the Audit Company and approved the provision of authorized non- audit services by the auditing company "Grant Thornton Societe Anonyme of Certified Auditors and Business Consultants". (p) monitored the process of preparation of the Sustainability Report, including the electronic submission of the Report in accordance with the article 154B of Law 4548/2018 as well as the procedure carried out by the Company in order to specify and verify the information submitted in accordance with the sustainability reporting standards under article 154A of Law 4548/2018. The Committee also submitted recommendations or proposals to ensure the integrity of the process. (q) was informed about the outcome of the submission of the Sustainability Report and provided the required clarifications and explanations regarding its contribution to the preparation process of the Sustainability Report as well as regarding its respective role. (r) monitored the mandatory audit in relation to the submission of the annual and consolidated sustainability report and in particular the respective performance, taking into consideration the findings and conclusions of the competent authority in accordance with paragraph 6 of article 26 of Regulation (EU) No. 537/2014. B. Internal control system procedures In the context of monitoring the effective operation of the Company's internal control system and the proper operation of the Internal Control Unit, the Committee: (a) Examined and evaluated the effectiveness and adequacy of the Internal Control Unit's procedures regarding the Company's financial information, without affecting by any manner its independence; (b) Monitored the effectiveness of internal control systems through the work of the Internal Control Unit and the work of the Certified Public Accountant; (c) Confirmed the exclusive employment, personal and functional independence and objectivity in the performance of duties of the Head of Internal Audit Unit as well as the possession of the appropriate knowledge, professional experience and absence of any incompatibility. (d) Reviewed the management of the Company's main risks by evaluating the methods used by the Company to identify and monitor the risks, as well as the treatment of the main ones and their proper disclosure; FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 263 (e) Was informed of the annual audit plan of the Internal Control Unit before its implementation, proceeded with a review and respective assessment, and then approved it accordingly; (f) Was informed of and evaluated the work of the Internal Control Unit and was informed of the reports of the Head of the Internal Control Unit; (g) Inspected the proper functioning of the Internal Control Unit in accordance with professional standards and the applicable legal and regulatory framework in general; (h) Held meetings with the Internal Controller for the discussion of pertinent issues and contributed to the resolution of such issues that emerged during the audit process, in order to ensure the smooth operation of all individual Departments and Divisions of the Company; (i) Confirmed that the Internal Control Unit had a constant and unhindered access to all the data and records of the Company, which are necessary for the performance of its duties, as well as to all the Departments of the Company, (j) Examined the Rules of Operation of the Internal Control Unit of the Company and its compliance with the requirements of the applicable regulatory framework. (k) was informed by the regulatory compliance officer about the findings, proposals and recommendations in the framework of the conducted regulatory compliance audit and approved the annual work plan for 2025, (l) was informed about the 2024 risk management report and approved the annual action plan of the risk management unit for 2025. (m) monitored and reviewed the adequacy and effectiveness of the Corporate Governance System based on a reporting date of 31.12.2022 and informed the Board of Directors about the Committee’s work and progress. C. Other (a) approved the content of the information that was provided to the shareholders during the Annual Ordinary General Meeting of 21 June 2024 regarding Company's activities for the financial year 2023 (01.01.2023-31.12.2023), (b) thoroughly reviewed the provisions and regulations of the new regulatory framework, i.e. Law 5164/2024 (Government Gazette A’ 202/12.12.2024) and in particular reviewed the regulatory obligations introduced by the above legislation, particularly with regard to the obligation to prepare Sustainability Reports, and held meetings with competent and specialized advisors for the Company's proper compliance with the new legislative requirements and the new regulatory framework. FLEXOPACK SOCIÉTÉ ANONYME COMMERCIAL AND INDUSTRIAL PLASTICS COMPANY Annual Financial Report of financial year 2024 (January 1 st – December 31 st 2024) Amounts in thousands euro 264 Sustainable development policy followed by the Group The sustainable development policy that governs the Group is based on the following axes: - demonstration of readiness to deal with emergency situations, - implementation of procedures for the prevention, detection and management of emergency incidents, - design and construction of facilities that aim for the greatest possible energy savings, - frequent maintenance and continuous renewal and upgrading of the utilized mechanical equipment, so as to aim at a low energy footprint, - continuous information, training and creation of awareness of personnel on climate change issues, - integration into the recycling and alternative packaging management system, with the aim of preventing the creation of packaging waste and with the aim of reusing, recycling and effectively utilizing the material, - implementation of technologies to reduce direct and indirect greenhouse gas emissions from energy consumption, - monitoring the policy followed by the Group's suppliers regarding the implementation of procedures to address climate change and the use of renewable energy sources; provision of relevant recommendations and suggestions, where deemed necessary, - building relationships of trust with the local communities in which the Group operates and continuous effort to minimize the obstruction caused. In conclusion, the members of the Audit Committee consider that they have fulfilled their duties and obligations, as set out in the updated Rules of Procedure of the Audit Committee, as well as that they have assisted in Board of Directors’ exercise of duties. Yours sincerely, The members of the Audit Committee The Audit Committee Dimitrios Panagotas Aliki Benroubi Nikolaos Vlachos Chairman Member Member

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