Vrancart SA

Quarterly Report • May 15, 2025

Consolidated quarterly report for the first quarter of 2025 according to ASF Regulation no. 5/2018

Report Date	15.05.2025
Name of the issuing entity	VRANCART SA
Registered office	Adjud, str. Ecaterina Teodoroiu nr.
	17, Vrancea county
Phone/Fax Number:	0237-640.800; 0237-641.720
Unique registration code at the O.R.C.	1454846
Serial number in the Trade Register	J39/239/1991
Subscribed and paid-up share capital	201,011,575 lei
Regulated market on which it is traded
securities issued	Bucharest Stock Exchange

1. Presentation of VRANCART SA Group

The Vrancart Group was initially established in 1977 as the Vrancea Pulp and Paper Factory, the company becoming Vrancart S.A. in 1992. The Company's shares are listed on the Bucharest Stock Exchange, Standard category, with the ticker symbol VNC, starting with July 15, 2005. The Group publishes the consolidated financial statements on www.vrancart.ro.

Vrancart Group operates on the Romanian market through its companies - Vrancart S.A., Rom Paper, Vrancart Recycling and Ecorep Group. The main activities of the subsidiaries:

• Vrancart S.A. and Rom Paper the companies produce and sell corrugated cardboard, paper, toilet paper and associated products from recycled raw materials;
• Vrancart Recycling and Ecorep the companies focus their activity on the recycling of raw materials, ensuring the circularity of operations.

As of March 31, 2025, the Company holds:

• 76.33% by Lion Capital SA,
• 17.35% by Pavăl Holding SRL
• 6.32% by other shareholders.

The record of shares and shareholders is kept in accordance with the law by Depozitarul Central S.A. Bucharest.

Figure 1. Group structure

The Vrancart Group is headquartered in Adjud, Vrancea County, where the cardboard production factories are also located. The toilet paper manufacturing subsidiary, Rom Paper, is located in Brașov. In addition to these two locations, there are also waste collection centers spread throughout Romania: Bucharest (2 centers), Iași, Ploiești, Botoșani, Sibiu, Brașov, Pitești, Timișoara, Bacău, Cluj. In addition, the Group has two production centers in Călimănești and Santana de Mureș, specialized in the production of corrugated cardboard and cardboard packaging.

The object of activity of Vrancart SA consists in the production and marketing of the following products:

• corrugated cardboard,
• corrugated cardboard packaging,
• papers for the manufacture of corrugated cardboard,
• hygienic-sanitary papers in various assortments,
• waste recycling equipment (sale, rental and maintenance),

• electricity from photovoltaic parks (self-consumption and sale).

Rom Paper operates in the field of production of hygienic-sanitary items made of recycled paper and cellulose, such as:

• napkins,
• folded towels,
• toilet paper
• professional roles,
• cosmetic towels
• wipes in the box.

The products made are sold both on the territory of Romania and in 6 other countries, through retail chains (hypermarkets, supermarkets, cash and carry), but also through distributors, distinguishing themselves on store shelves both through their own brands "Mototol" and "Papely", as well as through the various private labels of its customers.

2. Economic and financial situation of VRANCART SA Group

During the first quarter of 2025, the evolution of the Vrancart SA Group (hereinafter referred to as the "Group") was influenced by the decrease in volumes sold, which led to revenues below 2024 in particular in the case of Vrancart SA.

The decrease in domestic demand in the first quarter of 2025 was driven by the uncertainties generated by the unstable international context and the tense political climate in Romania, which affected consumer confidence and investment appetite.

For now, the toilet paper and napkins market in Romania is not educated on the use of products made from recycled raw materials and sustainability goals, with consumer preferences turning to products resulting from pulp processing, even if they are more expensive.

The value of revenues obtained from waste management was also lower than in the same period of the previous year as a result of the increase in prices, but also of the massive exports practiced by the other players in the market.

As of January 1st, 2025, the company has revised its pricing policy for carton sales, implementing an increase to reflect widespread cost increases. As a result of this announcement, some of the customers decided to postpone the placement of new orders. The Group's management is confident that it will succeed in attracting new orders and customers by offering quality, sustainably manufactured products, anticipating an increase in sales in the coming period.

In the case of Rom Paper SRL, we observe a maintenance of the volumes sold compared to the first quarter of the previous year, with a decrease in prices on this market. However, the drop in prices was offset by better productivity, which led to higher profitability.

Vrancart Recycling has completed the implementation process of the investment project in the cogeneration plant, molding facilities, pallet and foil recycling facilities and is in the period of attracting customers for products made from recycled raw materials, while Ecorep Group focuses on attracting new customers and additional volumes.

EBITDA at Group level stood at 16.3 mRON (vs. RON 17.6 million budget) in absolute value, and in relative value it recorded the level of 15% from the turnover (vs. 13% budget), the negative impact being found at Vrancart S.A. and Vrancart Recycling, while Rom Paper SRL generated a positive impact of +0.3 mRON with 11% more than budgeted expectations. The Group's management aims to recover the gap recorded in the quarter analyzed by Vrancart S.A. by the end of the year and to maintain the positive trend of Rom Paper SRL.

Compared to the same period of last year, the net result recorded was -1.2 mRON (vs. -4.3 mRON). Current liquidity decreased slightly to 0.91 (vs. 0.96), impacted by the repayment of long-term liabilities related to completed investments.

The company negotiated and signed contracts for the sale of the assets held for sale, completing the sale for the buildings and land in the Ungheni Mureș location in the 1st quarter. The transaction is expected to be completed and the equipment owned in Piatra Neamt is expected to be collected in the 2nd quarter.

The Group began to benefit from the 1st quarter of 2025, with the completion of the investment projects, from significant synergies in terms of optimizing production costs and increasing productivity that will lead to higher than usual returns, an extensive product portfolio, as well as a massive positive impact on the environment.

2.1. Balance sheet items

(all elements are expressed in RON, unless otherwise stated)	March 31st, 2025	December 31st, 2024
Fixed assets	647,902,614	659,564,600
Current assets, of which:	223,872,288	206,936,780
- Trade receivables	94,027,317	92,812,431
- Inventories	99,519,598	85,375,917
Total assets	871,774,902	866,501,380
Total debts, of which:	501,689,428	495,183,533
- Trade payables	245,107,674	223,342,080
Equity, of which:	370,085,473	371,317,847
- Reserves	178,767,507	178,767,507
- Retained earnings	(10,532,163)	(9,300,660)

As of March 31st, 2025 and between January 1 and March 31st, 2025, the evolution of the main financial indicators was as follows:

• The Group's fixed assets decreased by 1.8% as a result of the calculated impairment. The main investment projects were completed during 2024.
• The value of the Group's current assets increased by 8.2% as of March 31st, 2025 compared to the beginning of the year, mainly as a result of the increase in the value of inventories.
• Inventories increased by 16.6% compared to the end of the year. The increase was determined by the decrease in volumes sold in the first quarter, but also by the increase in prices, both for raw materials and finished products.
• Trade receivables increased in the first three months of 2025 compared to the beginning of the year by RON 1,214,886, mainly as a result of the increase in the sale prices of products, but also of longer collection terms.
• The total debts recorded as of March 31st, 2025 amounted to 501,689,428, up 1.3% compared to the value recorded on January 1st, 2025, mainly as a result of the financing of additional working capital, through the use of short-term credit lines.
• The value of shareholders' equity as of March 31st, 2025 is RON 370,085,473, down by 0.3% compared to the beginning of the year, as a result of the incorporation of the result achieved in the first quarter.

Attached to this report are the Interim Consolidated Financial Statements (simplified, unaudited) as of March 31st, 2025, according to the Order of the Minister of Public Finance no. 2844/2016 for the approval of the Accounting Regulations in accordance with the International Financial Reporting Standards, applicable to companies whose securities are admitted to trading on a regulated market.

The interim consolidated financial statements for the first 3 months of 2025 have not been audited by an independent external auditor and are not a legal or statutory requirement.

2.2. Profit and loss account

(all elements are expressed in RON, unless otherwise stated)	March 31, 2025	31 March 2024
Operating income, of which:	118,111,880	120,321,317
Revenue from turnover	109,652,194	119,192,464
Operating expenses	(116,501,240)	(121,798,115)
Operating result	1,610,640	(1,476,798)
Financial income	182	394,514
Financial expenses	(2,728,173)	(2,856,581)
Total Revenue	118,112,062	120,715,831
Total expenses	(119,229,413)	(124,654,696)
Gross result	(1,117,351)	(3,938,865)
Net Score	(1,232,374)	(4,290,142)

The demand for cardboard packaging started to increase slightly from the second quarter, with the Company's management expecting improved results from the next quarter.

The Group's management is considering a series of measures to boost sales to bring the Group's financial indicators back on an upward trend, in order to confirm the sustainability of the business, as well as the Group's resilience to adverse changes in the market.

In the first three months of 2025 compared to the same period last year, the main indicators of the Profit and Loss Account are presented as follows:

• The total revenues in the analyzed period were 118,112,062 lei, down by 2% compared to the same period last year, due to the reduction in the volume of sales of finished products.
• The total expenses for the period amounted to RON 119,229,413, down by 4% compared to the same period of the previous year.
• The Group's operating result is RON 1,610,640 as a result of the effects listed above. The net result, although negative, has improved compared to the same reporting period of the previous year and is at the expected level according to the evolution of the market.

2.3. Cash flows

(all elements are expressed in RON,	March 31st,	March 31st,
unless otherwise stated)	2025	2024
Flows from the operating activity
Revenues from operating activity	126,359,935	126,090,359
Payments from operating activity	(132,610,442)	(111,539,360)
Net cash from operating activity	(6,250,507)	14,550,999
Flows from investment activity
Receipts from investment activity	9,370,729	719,577
Payments from investment activity	(738,589)	(41,812,313)
Net cash from investment activity	8,632,140	(41,092,736)
Flows from financing activity
Proceeds from financing activity (including bonds)	24,026,267	97,020,868
Payments from financing activity	(23,336,593)	(69,587,830)
Net cash from financing activity	689,674	27,433,038
Balance at the beginning of the period	1,845,212	2,823,520
Balance at the end of the period	4,916,519	3,714,821

The balance of cash and cash equivalents recorded as of March 31st, 2025 is positive, respectively of RON 4,916,519. During this period, the Group managed to efficiently manage its treasury, honoring all its obligations due on time and in full.

3. The economic and financial indicators as of March 31st, 2025, according to Annex no. 13/ ASF Regulation no. 5/2018

Name of the indicator	Calculation Mod	UM	Result
Current Liquidity Indicator	Current Assets/Current Liabilities	rap	0,91
Indebtedness Indicator	Borrowed capital / Own capitalx100	%	83*
	Borrowed Capital/Capital	%	45*
	Employed x 100
Rotation speed of	Average customer balance/Turnover	days	77
customer debts	Business x 90
Rotation speed of	Turnover/Fixed Assets	rap	0,2
fixed assets

* The borrowed capital includes lines of credit, short- and long-term bank loans and debts from short- and long-term leases.

FEDOR Nicu Ciprian COMAN Gabriela Chairman of the Board of Directors Chief Executive Officer

VRANCART SA

CONSOLIDATED FINANCIAL STATEMENTS (SIMPLIFIED, UNAUDITED)

AS OF MARCH 31st , 2025

Issued in accordance with the Order of the Ministry of Public Finance no. 2844/2016 for the approval of the Accounting Regulations in accordance with the International Financial Reporting Standards, applicable to companies whose securities are admitted to trading on a regulated market

Table of contents

Consolidated statement of financial position	1
Consolidated statement of comprehensive income	3
Consolidated statement of changes in equity	4
Consolidated cash flow statement	5
Notes to the consolidated financial statements	6 - 9

	March 31st ,	December 31st ,
	2025	2024
ASSETS
Tangible assets	625,613,135	639,493,054
Prepayments for tangible assets	6,956,433	8,152,139
Intangible assets	5,881,903	2,492,475
Other fixed assets	924,752	900,541
Goodwill	8,526,391	8,526,391
Total non-current assets	647,902,614	659,564,600
Inventories	99,519,598	85,375,917
Trade receivables	94,027,317	92,812,431
Prepaid expenses	2,777,666	1,292,579
Other receivables	5,971,173	5,884,880
Cash and cash equivalents	4,916,519	1,845,212
	204,979,316	187,211,019
Assets held for sale	16,660,015	19,725,761
Total active curente	223,872,288	206,936,780
TOTAL ACTIVE	871,774,902	866,501,380
EQUITY
Share capital	201,011,575	201,011,575
Share premiums	842,449	842,449
Revaluation reserves	100,507,277	100,507,277
Legal reserves	13,659,100	13,659,100
Other reserves	64,601,130	64,601,130
Retained earnings	(10,532,163)	(9,300,660)
Total equity – Parent company	370,089,368	371,320,871
Non-controlling interests	(3,895)	(3,024)
Total equity	370,085,473	371,317,847
LIABILITIES
Long-term loans	143,655,989	156,806,674
Long-term leasing liabilities	18,659,987	22,994,191
Long-term subsidies	81,378,531	77,812,199
Long-term debts to employees	920,509	920,509
Deferred corporate income tax liabilities	11,959,132	12,868,668
Provisions	7,607	439,212
Total long-term liabilities	256,581,755	271,841,453

	March 31st , 2025	December 31st , 2024
Trade liabilities	80,453,351	72,885,129
Short-term loans	137,238,370	122,546,943
Short-term leasing liabilities	7,949,365	8,710,139
Short-term subsidies	3,656,263	5,724,676
Debts to employees	6,876,938	5,928,386
Current corporate income tax liabilities	2,116,011	890,611
Other short-term liabilities	6,817,376	6,656,196
Total current liabilities	245,107,674	223,342,080
TOTAL LIABILITIES	501,689,428	495,183,533
TOTAL EQUITY AND LIABILITIES	871,774,902	866,501,380

The financial statements have been approved by the Board of Directors.

Vrancart SA Consolidated statement of comprehensive income As of March 31st , 2025

(all amounts are expressed in RON, unless otherwise specified)

	March 31st , 2025	March 31st , 2024
Sales income from customer agreements	109,652,194	119,192,464
Income from operating subsidies	-	1,759,149
Other income	2,995,240	805,122
Production inventory's changes	6,464,446	(1,435,418)
Raw materials and consumables expenses	(30,432,162)	(38,330,927)
Utility expenses	(13,365,815)	(16,608,807)
Cost of goods sold	(10,547,397)	(9,602,230)
Third-party expenses	(13,134,696)	(10,425,575)
Labour expenses	(28,502,904)	(29,647,408)
Other expenses	(6,802,411)	(5,193,661)
EBITDA	16,326,495	9,512,709
Depreciation and amortization expenses of fixed assets	(14,715,855)	(11,989,507)
Operating result	1,610,640	(1,476,798)
Financial income	182	394,514
Financial expenses	(2,728,173)	(2,856,581)
Profit/(Loss) before taxation	(1,117,351)	(3,938,865)
Corporate income tax expense	(115,023)	(351,277)
Profit/(Loss) for the year	(1,232,374)	(4,290,142)
- Related to the shareholders of the Parent Company	(1,231,503)	(4,289,798)
- Related to non-controlling interests	(871)	(344)
Other comprehensive income
Changes in the reserve for the revaluation of property, plant and equipment, net of deferred tax	-	-
TOTAL COMPREHENSIVE INCOME FOR THE YEAR	(1,232,374)	(4,290,142)
- Related to the shareholders of the Parent Company	(1,231,503)	(4,289,798)
- Related to non-controlling interests	(871)	(344)

The financial statements have been approved by the Board of Directors.

	Attributable to shareholders of the parent company
		Revaluation	Share	Legal		Retained	Non-controlling
	Share capital	reserves	premiums	Reserves	Other reserves	earnings	interests	Total equity
Balance as of January 1st, 2025	201,011,575	100,507,277	842,449	13,659,100	64,601,130	(9,300,660)	(3,024)	371,317,847
Comprehensive result for the period
Net result for the period	-	-	-	-	-	(1,231,503)	(871)	(1,232,374)
Other comprehensive income
Changes in the reserve for the revaluation of property, plant and equipment, net of deferred
tax	-	-	-	-	-	-	-	-
Total comprehensive income for the period	-	-	-	-	-	(1,231,503)	(871)	(1,232,374)
Distribution of reserves	-		-	-	-	-	-	-
Transfer of the revaluation reserve to retained earnings following the sale/decomissioning of
tangible assets, net of tax	-	-	-	-	-	-	-	-
Shareholder transactions
Dividend	-	-	-	-	-	-	-	-
Capital increase	-	-	-	-	-	-	-	-
Total shareholder transactions	-	-	-	-	-	-	-	-
Balance as of March 31st, 2025	201,011,575	100,507,277	842,449	13,659,100	64,601,130	(10,532,162)	(3,895)	370,085,473

DIRECT METHOD

	March 31st ,	March 31st ,
	2025	2024
Cash flows from operating activities
Cash receipts from customers	126,359,935	126,090,359
Cash paid to suppliers	(96,768,673)	(77,721,661)
Cash paid to employees	(15,975,706)	(19,575,057)
Cash paid to the state budget	(19,866,063)	(14,242,642)
Net cash flows from operating activity	(6,250,507)	14,550,999
Cash flows from investment activities
Cash paid for the purchase of tangible and intangible assets	(738,589)	(41,812,313)
Proceeds from the sale of tangible assets	9,370,674	719,524
Interest received	55	53
Net cash lows from investment activities	8,632,140	(41,092,736)
Cash flows from financing activities
Proceeds from loans	21,075,323	97,020,868
Investment subsidies collected	2,950,944	-
Bond redemption	-	(38,250,000)
Payments for leasing	(805,756)	(3,572,930)
Loan repayments	(19,772,250)	(25,216,753)
Interest paid	(2,758,587)	(2,548,147)
Net cash from financing activities	689,674	27,433,038
Net (Decrease)/Increase in cash and cash equivalents	3,071,307	891,301
Cash and cash equivalents at the beginning of the financial year	1,845,212	2,823,520
Cash and cash equivalents at the end of the financial year	4,916,519	3,714,821

Reporting entity

The Vrancart Group ("the Group") includes the company Vrancart SA, with registered office in Adjud, str. Ecaterina Teodoroiu nr. 17, Vrancea County and its subsidiaries Rom Paper SRL ("Branch 1"), headquartered in Brașov, Șoseaua Cristianului, nr. 30, Brașov County, Vrancart Recycling SRL ("Branch 2"), headquartered in Adjud, Ecaterina Teodoroiu Street, no. 17, Vrancea County and Ecorep Group SA ("Branch 3"), headquartered in Adjud, Ecaterina Teodoroiu Street, no. 17, Vrancea county.

The Group's consolidated financial statements for the reporting ended March 31st, 2025 consist of the financial statements of Vrancart SA and its subsidiaries, which together form the Group.

Branch	Field of activity	Holding at March 31st , 2025	Holding at December 31st , 2024
Rom Paper SRL	Manufacture of napkins and sanitary products	100%	100%
Vrancart Recycling SRL	Treatment and disposal of non hazardous waste	100%	100%
Ecorep Group SA	Business support services activities n.e.c.	99.6%	99.6%

The Group operates in the field of collection and recycling of non-hazardous waste, in the paper and corrugated cardboard industry, and in toilet paper.

The final beneficiary of the Group is LION Capital SA (formerly called SIF Banat-Crișana).

VRANCART SA

Vrancart SA (the "Company") is a joint-stock company operating in Romania in accordance with the provisions of Law 31/1990 on commercial companies. The company has its registered office in Adjud, str. Ecaterina Teodoroiu no. 17, Vrancea county. The company has open work points in the following localities: Bucharest, Pantelimon, Chiajna, Calimanesti, Sântana de Mureș, Iași, Ploiești, Sibiu, Brașov, Pitești, Timișoara, Bacău and Cluj.

The Company's object of activity consists in the production and marketing of the following products:

• corrugated cardboard,
• corrugated cardboard packaging,
• papers for the manufacture of corrugated cardboard,
• hygienic-sanitary papers in various assortments,
• waste recycling equipment (sale, rental and maintenance),
• electricity from photovoltaic parks (self-consumption and sale).

The Company's shares are listed on the Bucharest Stock Exchange, Standard category, with the ticker symbol VNC, starting with July 15th, 2005. The Group publishes the consolidated financial statements on www.vrancart.ro. As of March 31st, 2025, the Company is 76.33% owned by Lion Capital SA, 17.35% by Pavăl Holding SRL and 6.32% by other shareholders. The record of shares and shareholders is kept in accordance with the law by Depozitarul Central S.A. Bucharest.

ROM PAPER SRL

Rom Paper SRL ("Subsidiary 1") established in 2002, is a private company with Romanian capital, operating in the field of hygienic-sanitary items made of recycled paper and cellulose, such as:

• napkins,
• folded towels,
• toilet paper
• professional roles,
• cosmetic towels
• wipes in the box.

The products made are sold both on the territory of Romania and in 6 other countries, through retail chains (hypermarkets, supermarkets, cash and carry), but also through distributors, distinguishing themselves on store shelves both through their own brands "Mototol" and "Papely", as well as through the various private labels of its customers.

Rom Paper SRL is the result of the inorganic growth strategy of the Vrancart business, which on January 20th, 2017 acquired the majority stake (70%) from the former owners. As of March 31st, 2025, the Group held 100% of the company's shares, following the acquisition in June 2017 of 15%, and in June 2018 of the last tranche of 15%, of the shares of Rom Paper SRL.

VRANCART RECYCLING SRL

Vrancart Recycling SRL ("Subsidiary 2") was established in 2020, in August, and is a private company with Romanian capital, with a sole shareholder. The main activity of this subsidiary is the treatment and disposal of non-hazardous waste.

This company was established with the aim of developing the Group through a greenfield investment, worth over EUR 25 million, in adjacent areas of recycling and heat and electricity production, covering a wide variety of recoverable resources that it will sell or use internally as a result of the newly created synergies.

The investment was completed and received in full on 31.12.2024, starting with 2025 entering the operation phase with all business lines developed.

ECOREP GROUP SA

Ecorep Group SA ("Subsidiary 3") was established in November 2020 and is a private company with Romanian capital. The main activity of this subsidiary is the provision of services regarding the implementation of the obligations related to the extended producer responsibility for the environmental targets related to the packaging placed on the Romanian market.

The Group carries out a laborious and complex activity in areas such as the collection and recycling of non-hazardous waste, the paper and corrugated cardboard industry, respectively corrugated cardboard packaging, the production of hygienic-sanitary paper items, as well as the equipment for recycling paper and cardboard waste. Starting with 2024, the group produces electricity through a new 20MWh photovoltaic park, which it uses for domestic consumption, the excess being capitalized through sale.

The overwhelming share of paper used in the various production processes is obtained from the recycling of paper and cardboard waste, the Group making an essential contribution to the Romanian circular economy.

Main investments underway at Group level

Within Vrancart S.A., at the end of 2024, a 20MW photovoltaic park worth RON 77 million was completed and put into operation, financed by investment loans, own contribution and grant from the National Recovery and Resilience Plan of Romania ("PNRR") in the amount of RON 29 million. The project was built on its own land of 39 ha, made viable and greened by the company in order to return it to the economic circuit. Another major project consists of the implementation, starting with January 1st , 2025, of a new, state-of-the-art ERP system, worth over 500 thousand euros, financed from bank credit and own contribution, meant to cover complex business needs.

There are currently 2 other important projects underway, worth approximately EUR 5 million, aimed at improving the production processes of corrugated paper, consisting of a state-of-theart technology, unique in Romania.

In Vrancart Recycling S.R.L., during 2024, an integrated waste recycling project was completed, representing a greenfield investment worth 27 million euros, financed through investment loans, own contribution and state aid worth 8.3 million euros, with the main purpose of developing new recycling capabilities for waste, plastic and wood, but also a cogeneration station for the production of thermal energy (16.2 to/h) and electricity (1.2 MW/h), unique in Romania, in terms of the fact that it uses waste and residues resulting from technological processes.

At Rom Paper, at the beginning of 2024, an extensive project to modernize the facial wipes production lines was completed and implemented, by increasing productivity and energy efficiency, worth 4.7 million euros, financed through investment loans, own contribution and a grant from the Innovation Norway program worth 1.9 million euros.

Accounting principles, policies and methods

The simplified interim consolidated financial statements for the first three months ended March 31st , 2025 have been prepared in accordance with IAS 34 Interim Financial Statements.

The simplified interim consolidated financial statements do not include all the information and items published in the annual report and should be read in conjunction with the Company's annual financial statements, prepared as of December 31st, 2024.

The accounting policies and valuation methods used for the preparation of the simplified interim consolidated financial statements are consistent with those used for the preparation of the Company's annual financial statements for the year ended December 31 st, 2024.

Entity combinations are accounted for by the acquisition method at the date on which the Group gains control of the acquired entity. Control requires exposure to or rights to the variable results of the entity in which the investment has been made, as well as the ability to influence those results by exercising authority over that entity.

The subsidiaries are entities controlled by the Group. The financial statements of the subsidiaries are included in the consolidated financial statements from the moment the exercise of control begins until the moment of its cessation.

The interim consolidated financial statements for the first three months of 2025 have not been reviewed by an external financial auditor and are not a legal or statutory requirement.

Foreign currency transactions

Operations denominated in foreign currency are recorded in RON at the official exchange rate on the date of settlement of transactions. Monetary assets and liabilities recorded in foreign currency at the balance sheet date are converted into functional currency at the exchange rate of that day.

Gains or losses on their settlement and conversion using the exchange rate at the end of the financial year of monetary assets and liabilities denominated in foreign currency are recognised in the statement of comprehensive income.

The exchange rates of the main foreign currencies were:

Currency		March 31st, 2025	December 31st, 2024	Variation
Euro (EUR)		4,9771	4,9741	+0,06%
American (USD)	Dollar	4,6005	4,7768	-3,69%

Other notes

The Group's management has established its medium and long-term strategy, and foresees increases in sales and decreases in costs as a result of the efficient use of resources, which will lead to an increase in operating profit.

As of March 31st, 2025, the Group has a positive cash balance of RON 4,916,519 and has no outstanding debts to public budgets or its private partners.

The Group attaches great importance to profitability indicators, by streamlining operational processes, and liquidity, by making efficient use of resources.

Based on these analyses, the management considers that the Group will be able to continue its activity for the foreseeable future and, therefore, the application of the business continuity principle in the preparation of the consolidated financial statements is justified.

Subsequent events

On April 29, 2025, the Ordinary General Meeting of Shareholders approved the individual and consolidated financial statements as of December 31st, 2024 the consolidated CSDR report and the Income and Expenditure Budget of VRANCART SA for the financial year 2025, together with the Investment Plan for 2025.

Management statement

According to the best information available, we confirm that the simplified interim consolidated financial statements as at March 31st, 2025 and for the period ended on that date, prepared in accordance with International Financial Reporting Standards (IFRS), provide a true and fair view of the assets, liabilities, financial position, and profit and loss account of the issuer and its subsidiaries included in the consolidation process of the Group's financial statements, as required by the applicable accounting standards. Furthermore, we confirm that the information presented in this report accurately and completely reflects the events concerning the issuer that occurred during the first three months of the financial year.