Eurohold Bulgaria AD

Interim / Quarterly Report • Mar 25, 2024

EUROHOLD BULGARIA

Activity report

INTERIM CONDENSED INDIVIDUAL REPORT

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TABLE OF CONTENTS

1

Interim condensed individual

activity report as at 31 December 2023

Operational review

Significant events

Activity results

Activity Report

Review of the main risks

Events after the date of the reporting period

Concluded significant transactions with related parties

2

Interim condensed individual financial statement as at 31 December 2023

Interim condensed individual statement of profit or loss and other comprehensive income

Interim condensed individual statement of financial position

Interim condensed individual cash flow statement

Interim condensed individual statement of changes in equity

3

Notes to the interim condensed individual financial statements

4

Internal information

5

Additional information

6

Appendix 4

7

Declaration of responsible persons

ABOUT THIS REPORT

The interim individual financial statements of Eurohold Bulgaria AD (Eurohold, Company, Holding) have been prepared in accordance with applicable accounting standards and give a true and fair view of the assets, liabilities, financial position and results of the Company.

Further information about Eurohold Bulgaria can be found on our website www.eurohold.bg

Eurohold Bulgaria plc also prepares a consolidated annual report including the results of the parent company, subsidiaries and associates.

In order to obtain a complete view of the financial position of the Eurohold Group, users of this interim condensed separate report should read it together with the consolidated report of the Eurohold Group as at the same reporting period

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1 Interim condensed individual activity report – 31 December 2023

Activity Report

OPERATIONAL REVIEW

BUSINESS ACCENTS

Eurohold Bulgaria AD,

• ✓ is a leading independent business group in Central and Southeastern Europe (SEE) with leading positions in the insurance and energy businesses
• ✓ has a principal activity relating to the creation, acquisition and management of participations and the financing of related undertakings
• ✓ owner of a large energy group in Bulgaria the Electrohold group
• ✓ is the owner of the largest independent insurance group in SEE by gross premium income Euroins Insurance Group
• ✓ has an experienced management team
• ✓ has a high level of corporate governance in line with best practice
• ✓ is a public joint-stock company within the meaning of the Public Offering of Securities Act (POSA), the company's shares are registered for trading on:
  • » Bulgarian Stock Exchange (BSE) stock code EUBG
  • » Warsaw Stock Exchange (WSE) with stock code EHG

Q4'2023

BUSINESS OPERATIONS

• ▪ 3 business sectors
  • ▪4 subsidiaries
• ▪ 2 dedicated energy business development companies
  • ▪ 17 operating companies
    • ▪ 13 countries in Europe
      • ▪9 400 shareholders
      • ▪28 years of history

BUSINESS ASSETS

Eastern European Electric Company II B.V. - Energy Group

Company uniting the energy companies acquired in 2021.

Euroins Insurance Group

CEE and SEE insurer with leading positions in Romania and Bulgaria. Active operations in 9 markets in Europe.

Euro-Finance - investment intermediation and asset management

Market turnover leader on the Bulgarian Stock Exchange, Member of Deutsche Börse Group.

ACTIVITY REVIEW

MAIN ACTIVITY

Eurohold Bulgaria AD is a holding company primarily engaged in financial activities related to the acquisition, sale and management of interests and financing of related companies.

The Company has a subject of activity: acquisition, management, evaluation and sale of participations in Bulgarian and foreign companies, acquisition, management and sale of bonds, acquisition, evaluation and sale of patents, assignment of licenses for the use of patents to companies in which the Company participates, as well as financing of companies in which the Company participates.

The Company does not engage in any activities subject to special permitting regimes requiring patents, licenses or other authorizations from regulatory authorities.

In order to optimize management, business processes and fixed costs, the Company has structured its businesses into subholding structures depending on the sector in which they operate. Eurohold Bulgaria AD together with its subsidiary subholding companies and their operating companies form an economic group, the Eurohold Group.

Eurohold manages and supports the business of its economic group through its strategy, risk, financing of affiliates, control, communication, legal advice, human resources, information systems and technology and other functions.

ЕCONOMIC GROUP

The organizational structure of Eurohold is structured on three levels:

• ✓ parent company;
• ✓ subsidiary companies; and
• ✓ operating companies;

Each of the three levels has its specific functions, business activities and objectives.

Existing business activities as of 31.12.2023

The subsidiary companies represent holding structures, uniting the investments of Eurohold Bulgaria AD in the following sectors:

• ▪Energy;
• ▪Insurance; and
• ▪Financial and investment (Investment brokerage and asset management)

As of 31.12.2023 and as of the date of this report, Eurohold Bulgaria AD has holdings in 24 companies*

• » 4 subsidiaries
  • ✓ two sub-holding structures (energy and insurance),
  • ✓ two operating companies (finance - investment mediation and energy)

direct participation indirect participation

• » 2 dedicated energy business development companies
• » 16 operating companies*
  • (8 energy and 10 insurance*)

*including the insurance company in Romania (Euroins Romania Asigurare-Reasigurare S.A.) - discontinued operations

CHANGES IN THE ECONOMIC GROUP COMPARED TO THE COMPARABLE REPORTING PERIOD

Discontinued operations in 2022

• ▪Completely ceased business activities
• ▪Automobiles; and
• ▪Leasing

As of June 30, 2022, Eurohold Bulgaria AD operated in the following business sectors:

• ✓ Automobiles (car sales and servicing) through its subsidiary company Auto Union AD; and
• ✓ Leasing (financial and operational leasing) through its subsidiary Eurolease Group AD;

Discontinued regional business operations in existing businesses

• ▪Belarus and Russia;
• ▪Romania

✓ On 30 December 2022, Euroins Insurance Group (EIG), signed an agreement for the sale of its subsidiary insurance company in Belarus (100% participation) and the group's 48.61% stake in an insurance company in Russia.

As of the date of the contract (30.12.2022), the results of the two insurance companies have been reclassified as discontinued operations.

✓ On 17.03.2023, the Romanian insurance supervision ASF revoked the license of the Romanian insurance company Euroins Romania Asigurare-Reasigurare S.A. (see item C.2.3 Significant events that occurred after the balance sheet date) as a result of which the management of Eurohold Bulgaria AD and of Euroins Insurance Group (EIG) decided to write down the investment in the balance sheet of the companies with the value of the reputation of the Romanian company as of 31.12.2022.

On June 9, 2023, the court in Bucharest decided to declare Euroins Romania Asigurare-Reasigurare S.A. bankrupt.

ASSIGNED CREDIT RATINGS

Eurohold

Issuer Default Rating "B" Outlook: stable

Eurohold

Long-term: BBB-Outlook: stable Short-term: A-3

bonds issues Long-term: BBB-Outlook: stable Short-term: A-3

IMPORTANT EVENTS

INFORMATION ON SIGNIFICANT EVENTS, ACCORDING TO ARTICLE 100o, 4, S.2 OF THE POSA

IMPORTANT EVENTS FOR THE ACTIVITIES OF EUROHOLD BULGARIA DURING THE REPORTING PERIOD

January

✓ No significant events have occurred

February

✓ On 10 February 2023 Eurohold Bulgaria informed the public about illegal actions of employees of the Romanian insurance supervision against the Romanian insurance company "Euroins Romania Asigurare-Reasigurare" S.A. (Euroins Romania) part of the group.

Eurohold has informed the FSC and a number of competent state and international bodies and institutions about these actions.

On the website of Eurohold Bulgaria AD, in the news section (www.eurohold.bg), the information published by the company can be followed, as well as the subsequent actions and measures taken.

✓ On 17 February 2023 - The management of Eurohold Bulgaria AD informed the public (news section of www.eurohold.bg) that despite its disagreement with the actions of insurance supervision officials in Romania against the local division of Euroins in order to protect the company from further regulatory overpressure, Euroins Romania concluded a new reinsurance contract with the group's reinsurer - IC EIG Re EAD (EIG Re). This contract guarantees the payment of all claims of the Romanian insurer and ensures the transfer of a significant part (87%) of the risk in its portfolio outside the company, thereby retroceded to leading European reinsurers.

March

✓ On 17 March 2023 - the Romanian financial regulator ASF decided to revoke the insurance activity license of Euroins Romania, part of Euroins Insurance Group AD (EIG), open bankruptcy proceedings and appoint the Fund Insurance Guarantee (FGA) as a temporary company administrator.

In this regard, Eurohold's management made a statement that, notwithstanding this, apart from Euroins Romania, all other subsidiaries and businesses of Eurohold in all the other 11 markets in which they operate, including insurance and energy, are operating and will continue to operate as usual and without any problems, serving their customers and duties and executing their business plans.

Since the beginning of February, when Eurohold publicly raised the alarm about the illegal actions against Euroins Romania, within a month and a half the management of the holding took all the necessary actions to protect the other companies of the group and guarantee their stable and normal functioning, so that in no way will the activity of the other companies in the Eurohold group be affected.

As a result of the decision of the Romanian financial regulator against Euroins Romania, the holding company announced that it has started a procedure to challenge this decision in all competent courts in Europe and around the world.

✓ On 21 March 2023 - Eurohold requested the return of the Euroins Romania license.

At a press conference in Bucharest, the holding warned that the ASF's decision to revoke the license and request for bankruptcy leads to the termination of all reinsurance contracts of the Romanian company, as a result of which all damages and claims will have to be paid by the Guarantee Fund (this condition is basic and standard for each reinsurance contract).

The entire published announcement, including the presentation from the press conference, can be viewed in the news section of the announcement of 21.03.2023 on the website www.eurohold.bg.

✓ On 29 March 2023 - Fitch confirmed limited impact of the case with Euroins Romania on EIG and its remaining subsidiaries.

Fitch Ratings downgraded Euroins Romania from "B+" to "CC" and placed it under monitoring and follow-up development.

At the same time, Fitch Ratings leaves unchanged the ratings of the other companies evaluated by it, which are part of Euroins Insurance Group AD - ZD Euroins AD and the reinsurer EIG Re AD, as well as the group itself. The agency only places them under surveillance with a negative outlook.

April

✓ On 10 April 2023 - The European Bank for Reconstruction and Development (EBRD), which is a minority shareholder in Euroins Insurance Group AD (EIG), part of Eurohold Bulgaria AD, published on its website on April 5 a position on the case with Euroins Romania and on the state of the Romanian insurance market.

The EBRD is in active discussions with all responsible parties to reach a solution in relation to the market turmoil caused by the revocation of Euroins Romania's license.

The EBRD wants to help find a solution, therefore, together with EIG, the bank made a proposal to the ASF to find such a solution. In relation to this proposal, EBRD, EIG and ASF continue to hold constructive discussions.

May

✓ On 29 May 2023, Euroinsurance Group (EIG) acquired a subsidiary in Georgia. EIG is 100% owner of the trading company "Shardeni 2017" Ltd., Georgia.

June

✓ On 9 June 2023, the court in Bucharest decided to declare Euroins Romania bankrupt.

However, Eurohold informs that Euroins Insurance Group (EIG) and its key subsidiaries remain fully capitalized and viable and continue their normal business operations, ensuring continuity of business relationships and a stable capital position including coverage of the Solvency Capital Requirement.

All other group subsidiaries in and outside the EU remain in full compliance with all local regulatory requirements. Eurohold thanks all customers, partners and employees for their continued support over the past few months, during which EIG has proven itself to be a stable and viable group that provides reliable services even now.

✓ On 21 June 2023, one of the major credit rating agencies in the world - Fitch Ratings, confirmed a long-term 'B' rating with a stable outlook for Eurohold Bulgaria AD. In a message from the agency, they also indicate that they are removing the holding from their watch list for a possible negative outlook on the rating (Rating Watch Negative, RWN).

Fitch's assessment reflects the reduction of the company's indebtedness, the reduced reputational risk and the absence of the danger of a liquidity crisis due to the events with the subsidiary Euroins Romania. Fitch also positively assesses the agreement of Eurohold's creditors and bondholders not to make claims in connection with the case with the Romanian insurance company, for which they have committed themselves in writing, providing full support for the company.

Fitch also rates Eurohold's results for 2022 as better than expected. As a result, the indebtedness of the holding decreased to a lower than expected level, and the agency predicts a further improvement of the indicator this year. The strong performance of the holding's energy business contributes to this trend.

✓ On 12.06.2023, EIG Insurance Group established a subsidiary in Romania PHOENIX MGA SERVICES S.R.L., Romania. EIG is the sole owner of the capital of the newly established company. The main activity of the company is: Consulting in the field of business and management.

July

✓ No significant events occurred

August

✓ On 7 August 2023, Fitch Ratings confirmed a B plus rating with a stable outlook for Euroins and removed the watch over the company Fitch Ratings confirmed a long-term 'B+' rating with a stable outlook for ZD Euroins AD (Euroins Bulgaria) - the largest subsidiary of Euroins Insurance Group AD (EIG), part of Eurohold Bulgaria AD. The same rating was awarded to the reinsurer of the group - EIG Re AD.

Fitch Ratings also indicated that it is removing the two companies from the watch list for a possible negative outlook on the rating (Rating Watch Negative, RWN). This is dictated both by their results and performance, and by the judgment that the business of the group companies remains stable even after leaving the Romanian market.

September

✓ No significant events occurred

October

✓ On 2 October 2023, IG Euroins AD (Euroins Bulgaria), part of the insurance group of Eurohold - Euroins Insurance Group AD (EIG), increased its capital by BGN 15 million (EUR 7.7 million). The funds have been paid and imported, and will be used to finance the company's development in foreign markets, primarily in Greece and Poland - the two largest where the company operates outside of Bulgaria.

With the capital increase, Euroins will further improve its solvency to a level that fully covers and even exceeds the company's risk appetite. Also, the Company strengthens its capital position and provides additional business development opportunities in Southeast Europe.

✓ On 11 October 2023, Eurohold donated funds to support the Sports and Social School of the Real Madrid Foundation in Vidin.

Over 80 children from the Sports and Social School in Vidin, managed by the Real Madrid Foundation in cooperation with the Friends of Sport Foundation, received invaluable support for the cause of their future development. At a charity auction in Sofia, in the presence of Real Madrid legend Emilio Butragueño, funds were collected for the sustainability of the project in Vidin and for considering the possibility of opening a second sports and social school in Bulgaria.

Eurohold, as a socially responsible company, supports Bulgarian children and especially disadvantaged children, deprived of parental care with a focus on children's health, development and education, for their better future.

November

✓ On 26 October 2023, Eurohold Bulgaria AD and Euroins Insurance Group AD officially informed the Government of Romania of their intention to file an international arbitration case to protect the holding's investment in Romania, in case the current case dispute with Euroins Romania does not be resolved quickly and if the group is not properly compensated for the losses suffered.

December

✓ As of 31.12.2023, the control of "ZD EIG Re" EAD, a subsidiary of "Euroins Insurance Group" AD, has been lost, and all necessary notifications to the competent authority have been performed, in line with the applicable legislation.

SIGNIFICANT EVENTS OCCURRING AFTER THE REPORTING PERIOD DATE

January

✓ On January 15, 2024, the BSE awarded the best performing companies in 2023. Eurohold is among the most liquid companies on the Bulgarian Stock Exchange (BSE) for another year. In 2023, the holding is in second place in terms of liquidity of the Standard share segment on the main market of the BSE.

The Management Board of Eurohold Bulgaria AD is not aware of any other important or significant events for the Eurohold group that occurred during the reporting period or after the date of its completion.

ACTIVITY RESULTS

Results on an individual basis

Eurohold Bulgaria AD is a holding company with significant investments in subsidiary companies and as such does not carry out independent and regular commercial transactions. The main (operating) income of the holding company is of a financial nature, with the most significant of them - profits from operations with financial instruments and subsequent assessments appearing in different accounting periods and not of a permanent nature.

As of 31.12.2023, Eurohold manages a portfolio of companies in the sectors: energy, insurance, investment mediation and asset management (financial and investment services).

Eurohold Bulgaria AD has a long-term approach to its investments and holds leading positions on the markets in the segments in which it operates.

In this regard, investors and interested parties should analyze the results of this individual financial report together with the consolidated report, giving a clear and complete view of the results, financial position, strategies and development prospects of the Eurohold group.

FINANCIAL OVERVIEW

ANALYSIS OF THE FINANCIAL SITUATION

ACTIVITIES

		∆	31.12.2023	∆	2022
ASSETS		%	thousand BGN	thousand BGN	thousand BGN
Non current assets	Investments in subsidiaries	(6.6%)	608 922	(43 028)	651 950
	Property, plant and equipment, usufruct rights	(13%)	1 048	(156)	1 204
	Intangible assets	(100%)	0	(1)	1
	Receivables from
Current	related parties	15%	20 205	(3 554)	23 759
assets	Other receivables	(90.7)%	1 532	(14 928)	16 460
	Cash and cash equivalents	(95.4)%	104	(2 134)	2 238
	Total Assets	(9.2)%	631 811	(63 801)	695 612

ANALYSIS OF SUBSTANTIAL ASSETS

» Investments in enterprises

In the 2023 there was a change in the value of the investment in the subsidiary combining the energy companies. In June 2023, the Company's shareholders received a new investment in a subsidiary. The management of Eurohold Bulgaria AD decided to return additional capital contributions from Eastern European Electric Company II B.V. in the amount of EUR 22 million (43,028 thousand BGN).

» Current receivables from related enterprises

The value of current receivables from affiliated enterprises decreased by 3 554 thousand. amounting to BGN 20.2 million at the end of 2023 (BGN 23.8 million at the end of 2022).

They mainly represent receivables from the subsidiary insurance company Euroins Insurance Group AD and arose under a loan agreement and a debt replacement agreement under the following parameters:

Creditor	Liable person	Currency	Contract limit	Principal due 31.12.2023	Principal due 31.12.2022	Interest rate	Due date
Borrowing under a loan agreement with related parties:
Eurohold Bulgaria AD	8 010 000	BGN	8 010 000	4 555 124	8 010 000	8.00%	08.11.2024
Collection under assignment agreement with related parties:
Eurohold Bulgaria AD		BGN	14 425 523	13 151 506	13 271 064	2.50%	01.01.2025
Total claims on loans/assignments from related parties:				17 706 630	21 281 064

» Other receivables (current)

Other receivables decrease substantially by over BGN 15 million after impairment. Their value at the end of the period is BGN 0.4 million (2022: BGN 19.2 million before impairment and BGN 16.5 million after impairment).

The other receivables at the end of 2022 mainly represent a receivable under a debt substitution agreement with an unrelated third party, with the following parameters:

Creditor	Liable person	Currency	Contract limit	Principal due 31.12.2023	Principal due 31.12.2022	Due date
Eurohold Bulgaria AD	Third - an unrelated person	BGN	21 000 000	-	18 000 000	03.04.2024

In the 2023, the claim from a third party was settled.

Cash and cash equivalents

At the 31.12.2023 cash and cash equivalents decrease from BGN 2.2 million at the end of 2022 to BGN 104 thousand.

EQUITY AND LIABILITIES

		∆	31.12.2023		2022
EQUITY AND LIABILITIES		%	thousand BGN	thousand BGN	thousand BGN
Equity	Share capital	-	260 500	-	260 500
	Premium reserve on issue of securities	-	144 030	-	14 030
	General reserves	-	7 641	-	7 641
	(Retained loss) / Retained earnings	151.5%	(169 569)	(102 147)	(67 422)
	Loss for the year	(76.4)%	(23 755)	83 150	(102 147)
Subordinated debt	Subordinated debt instruments	(95.5)%	386	(8 194)	8 580
	Bond liabilities	3.3%	241 755	7 644	234 111
Non-current	Borrowings from financial and non financial institutions	28.5%	21 271	4 716	16 555
liabilities	Related parties' liabilities	(100)%	-	(13 797)	13 797
	Other long-term liabilities	(16.7)%	950	(191)	1 141
	Bond liabilities	(0.1)%	1 569	(2)	1 571
	Loans from financial and non-financial institutions	(78.9)%	34 794	(130 330)	165 124
Current liabilities	Related parties' liabilities	(327.9)%	39 691	30 416	9 275
	Trade payables	714.8%	11 195	9 821	1 374
	Other short-term liabilities	4040%	61 353	59 867	1 482
	Total Equity and Liabilities	(9.2)%	631 811	(63 801)	695 612

Analysis of capital and material liabilities

» Equity

Eurohold's share capital remains unchanged at BGN 260.5 million. The Company's registered capital consists of 260,500,000 fully paid ordinary shares with a par value of BGN 1 per share. All shares are entitled to receive a dividend and a liquidation share and represent one vote at the Company's shareholders' meeting.

In the report for the fourth quarter of 2023, there was no substantial change in the ownership of shareholders with more than 5% of the shares of Eurohold Bulgaria AD.

Shareholders structure as of 31.12.2023:

Shareholders	Number of shares /Voting rights/	% of the share
Total shareholders legal entities, incl:	256 062 294	98.30%
>Total shareholders over 5% (legal entities)	216 839 279	83.24%
>Other legal entities	29 223 015	15.06%
Total shareholders private individuals	4 437 706	1.70%
Total number of shares with voting rights	260 500 000	100.00%

Eurohold's equity as of 31.12.2023 is BGN 218.5 million, with a decrease of 9.9% compared to the end of 2022 due to the loss realised for the reporting period.

» Subordinated debts

As of 31.12.2023, Eurohold Bulgaria AD has attracted subordinated debt instruments (unissued - Tier 1 capital) in the amount of BGN 386 thousand (2022: BGN 8580 thousand).

Subordinated debts have no fixed maturity and the lender - Starcom Holding AD cannot demand its repayment, regardless of whether there is a case of non-performance under the agreement. Eurohold Bulgaria AD has the right (but is not obliged) to pay amounts from the loan principal corresponding to each consecutively received tranche after the expiration of 5 years from the date of receipt of the respective tranche. Premature demandability of the principal of the subordinated debt is not allowed, except in cases of liquidation or bankruptcy, after payment of the amounts due to all privileged creditors, as well as to all other unsecured creditors.

The interest due under the contract from 12.08.2021 is 5% on an annual basis on the attracted sums of money for the period of their actual use. The interest due under the contract from 29.11.2022 is 6% + 3M EURIBOR on an annual basis on the borrowed sums of money for the period of their actual use.

» Liabilities

The company's liabilities (excluding subordinated debt capital) decreased by 7.2%, and their amount was BGN 412.6 million (2022: BGN 444.4 million)

The decrease in liabilities is mainly due to repayments of loans from financial and non-financial institutions during the period.

Liability analysis

Remark: The data presented in the graph are without taking into account subordinated debt instruments in the total liabilities.

Non-current liabilities decrease by 0.6%. (BGN 1.6 million), which is mainly due to the following changes:

• Growth in the amount of obligations under bond loans by 2.2% (BGN 5.1 million).
• Information on bond loans issued is available in the Appendices to the Interim Condensed Individual Financial Statement for the 2023 (Appendix: 21 Bond Loan Obligations).

» Non-current obligations under issued bond loans increased during the reporting period of 2023 as a result of bond transactions, as follows:

2021

• o 4,000 units were sold. purchased own bonds with ISIN XS1731768302.
• o Pursuant to the Agreement, a subsidiary of Eurohold Bulgaria AD replaces another subsidiary of Eurohold Bulgaria AD in its capacity as a lender under a loan agreement for financial instruments with 2,126 units owed by Eurohold Bulgaria AD. securities from the EMTN Program in EUR with ISIN XS1731768302 with a total nominal value of EUR 2,126 thousand and unpaid interest in the amount of BGN 91 thousand.

2022

o 2,126 units were acquired under a loan agreement for financial instruments. bonds from the EMTN Program in EUR with ISIN XS1731768302, under which the company reported interest expenses in the amount of BGN 135 thousand.

• o 1,650 units were acquired under a loan agreement for financial instruments. bonds from the EMTN Program in EUR with ISIN XS1731768302, under which the company reported interest expenses in the amount of BGN 105 thousand.
• o A total of 1,306 units were sold during the period. bought own bonds with ISIN XS1731768302 and a profit from operations with investments and financial instruments in the amount of BGN 63 thousand was recorded.
• o Pursuant to contracts for the purchase and sale of financial instruments, the ownership of 1,306 units was transferred. (acquired) repurchased own bonds with ISIN XS1731768302. As of September 30, 2022, the financial relationships under these contracts have not been fully settled.
• o Pursuant to three contracts for repo transactions with financial instruments, 3,766 units and 2,400 units were respectively sold with an arrangement for repurchase. and 1,376 pcs. purchased own bonds with ISIN XS1731768302. As a result of the transactions, losses from operations with investments and financial instruments in the amount of BGN 329 thousand were recorded.
• o 35,000 units were bought back. own bonds with ISIN BG2100002224 and a loss from operations with investments and financial instruments in the amount of BGN 479 thousand was recorded.
• o Pursuant to the contract for the purchase and sale of financial instruments, the ownership of 20,500 units was transferred. repurchased own bonds with ISIN BG2100002224, with which the financial relationships with the Assignor under three contracts for the transfer of receivables and their annexes are settled.
• o Pursuant to the contract for the purchase and sale of financial instruments, the ownership of 6,000 units was transferred. (acquired) repurchased own bonds with ISIN BG2100002224, which finally settled the financial relationships under the contract for the purchase and sale of Daru Invest EAD (related party until 22.03.2022).
• o Pursuant to contracts for the purchase and sale of financial instruments, 20,100 units were bought back. own bonds with ISIN BG2100002224. As a result of the transactions, a profit from operations with investments and financial instruments in the amount of BGN 1,000 was recorded.
• o A total of 22,944 units were sold for the period. bought own bonds with ISIN BG2100002224 and reported losses from operations with investments and financial instruments in the amount of 57 thousand BGN and profits from operations with investments and financial instruments in the amount of 4 thousand BGN.
• o Pursuant to the Tripartite Agreement and Agreement, the ownership of 495 units was transferred. (acquired) repurchased own bonds with ISIN BG2100002224, which partially settled the financial relationships under the concluded contract for the purchase and sale of shares of Auto Union AD (related party until 30.06.2022).

Increase in non-current liabilities to financial institutions by 28.5% (BGN 4.7 thousand), as a result of:

» Extension of the maturity of part of the absorbed loan to JP Morgan ESI, with which EUR 10 million (BGN 19.7 million) have been reclassified as long-term liabilities. The non-current principal is payable in two installments of EUR 5 million in December 2024 and June 2025, respectively.

As of 31.12.2023, the non-current liability to JP Morgan ES is in the amount of BGN 9.8 million (the remaining BGN 9.9 million is presented in current liabilities due to their maturity in December 2024)

» Reduction of the liability for two loans to the International Investment Bank by BGN 5.1 million, due to the accounting of the reduced amount in current liabilities;

Reduction of long-term liabilities to related parties by 100% (BGN 13.8 million)

» The long-term liabilities paid to related parties are under a loan agreement concluded with Starcom Holding AD with an agreed limit of BGN 40 million, an interest rate of 5.5% and a maturity of 05.05.2025.

Current liabilities decreased by 44.9% (BGN 80.4 million), which is mainly due to the following changes:

Reduction of current obligations under bond loans by BGN 2 thousand.

• » Reduction of current liabilities to financial institutions by 78.9% (BGN 130.3 million)
• » From the beginning of 2023 until the end of the reporting period, Eurohold Bulgaria is:

а) fully repaid a loan to the International Bank for Economic Cooperation in the amount of BGN 23.7 million (EUR 12.1 million);

б) reduced the current loan obligation to JP Morgan ES in the amount of BGN 68.6 million (EUR 35 million), which is:

> paid off a partial liability in the amount of BGN 48.9 million (EUR 25 million).

> renegotiated BGN 19.7 million (EUR 10 million) of the remaining principal in the amount of BGN 29.7 million (EUR 15.1 million), of which at the end of 2023 BGN 9.9 million (EUR 5 million) reported as shortterm due December 2024;

в) partially repaid a loan to the International Investment Bank in the amount of BGN 3.3 million (EUR 1.7 million)

• Reduction of the amount of liabilities under the Euro Commercial Book (ECP) by 100% (BGN 57.6 million).
  • » The company carried out a transaction on the reverse acquisition of the Euro Trading Book (ECP) from an issue with ISIN XS2491929290 with a nominal value of EUR 2,500 thousand. Issue withdrawn due to maturity.
  • » The company carried out transactions on the reverse acquisition of the Euro Commercial Book (ECP) from an issue with ISIN XS2565406654 with a nominal value of EUR 27,500 thousand. Issue withdrawn due to maturity.
• Other current liabilities to financial and non-financial institutions in the amount of BGN 4.3 million.
  • » Other current liabilities to financial and non-financial institutions represent a liability (principal + interest) under a loan agreement for financial instruments with an annual interest rate of 7.0% and due on 05.06.2024.

The amount of liabilities to related parties increased by 327.9% (BGN 30.4 million) in connection with:

• » New obligation to Starcom Holding AD under two loan agreements as follows:
  • - BGN 28,984 thousand with an annual interest rate of 5.5%, due on 31.12.2024 and an agreed limit of BGN 40 million.
  • - BGN 8,214 thousand with an annual interest rate of 6.0% + 3M EURIBOR, due on 31.12.2024 and a contractual limit of EUR 4.2 million.
• » repaid liability to ZD Euroins AD in the amount of BGN 4.2 million, arising from a loan of financial instruments, with an annual interest rate of 7.0% and due on 05.12.2023.
• » repaid debt of BGN 3.2 mln. under a contract with Euroins Romania Insurance Reinsurance S.A. (insolvent) for a loan of financial instruments has an annual interest rate of 7.0% and maturity on 05.12.2023.

Other current liabilities

» Increase in liabilities under contracts for assignment of receivables from BGN 14 thousand to BGN 58 689 thousand

» Structure of loan commitments by type and nature:

Loans payable	∆	31.12.2023	∆	31.12.2022
	%	thousand BGN	thousand BGN.	thousand BGN
Subordinated debt instruments	0.2%	386	20	8 580
Bank loan liabilities:	(54.9)%	56 065	(68 229)	124 294
Non-current payables to banks	28.5%	21 271	4 716	16 555
Current liabilities to banks	(67.7)%	34 794	(72 945)	107 739
Liabilities on bonded loans:	3.2%	243 324	7 642	235 682
Non-current liabilities on bonded loans:	3.3%	241 755	7 644	234 111
EMTN Programme ISIN: XS1731768302	9.8%	85 317	7 644	77 673
EMTN Programme ISIN: XS1542984288	-	19 558	-	19 558
Bond loan with ISIN code BG2100013205	-	58 675	-	58 675
Bond loan with ISIN code BG2100002224	-	78 205	-	78 205
Current liabilities on bonded loans:	(0,1)%	1 569	(2)	1 571
Interest Obligations on Bonded Loans	(0,1)%	1 569	(2)	1 571
Due to non-financial institutions:	(100)%	-	(57 385)	57 385

Current other loans (Euro Commercial Paper - ECP)	(100)%	-	(57 385)	57 385
Loans payable to related parties:	72%	39 691	16 619	23 072
Non-current	(100)%	-	(13 797)	13 797
Current	327.9%	39 691	30 416	9 275
Liabilities under contracts for assignment of receivables: Current liabilities to transferors	419107%	58 689	58 675	14
	419107%	58 689	58 675	14
Total amount of loan commitments	(11.3)%	398 155	(46 828)	449 013
Non-current liabilities	(3.5)%	263 412	(9 631)	273 043
Current liabilities	(23.4)%	134 743	(41 241)	175 984

ACTIVITY RESULTS

FINANCIAL RESULT

Eurohold Bulgaria AD for the period January 1 - December 31, 2023 reports a financial result on an individual basis loss in the amount of 24 million. BGN (2022: loss BGN 102 million).

INCOME AND EXPENSES

» Income

	∆	31.12.2023	31.12.2022
Income from operating activities	%	thousand BGN	thousand BGN
- Dividends	(38)%	1 306	2 102
- Gains from the sale of investments in subsidiaries, transactions with financial instruments and subsequent valuations.	(1)%	1 194	1 202
- Interest income	96%	705	359
- Other financial income	(10)%	19	21
Total operating income	(12)%	3 224	3 684

Analysis of gains from the sale of investments in subsidiaries, transactions with financial instruments and subsequent valuations:

Gains from the sale of investments in subsidiaries, operations with financial instruments and subsequent valuations (shown below):

In the current period of 2023:

• BGN 62 thousand from revaluation of own bonds bought by EMTN Program in EUR with ISIN XS1731768302;
• BGN 1 thousand from revaluation of own bonds purchased with ISIN BG2100002224.
• BGN 1 131 thousand profit from operations with investments and financial instruments are from transactions with purchased own Euro Commercial Paper (ECP)

In the comparable period of 2022:

✓ BGN 97 thousand gains on sale of investments in subsidiaries related to transfer of ownership of shares of Auto Union AD to a third party;

✓ Profits from operations with investments and financial instruments include:

• BGN 133 thousand gain on the sale of own bonds purchased by EMTN Programme in EUR with ISIN XS1731768302;
• BGN 195 thousand gain on operations with purchased own Euro Commercial Paper (ECP) with ISIN: XS2430057443;
• BGN 5 thousand gain on the sale of purchased own bonds with ISIN BG2100002224;
• BGN 4 thousand gain on sale of other financial instruments;

✓ Income from revaluations of debt instruments valued at fair value are:

• BGN 591 thousand from the revaluation of the EMTN Programme's own bonds redeemed in EUR with ISIN XS1731768302;
• BGN 110 thousand from revaluation of own bonds purchased with ISIN BG2100002224;
• BGN 67 thousand from revaluation of other financial instruments.

» Expenses

Eurohold's operating expenses are mainly related to the costs of carrying out specific ongoing projects, interest expenses on borrowed funds used/raised to finance the Holding's operations and the development and support of its subsidiaries, as well as expenses from operations with financial instruments and other financial items.

Eurohold also records fixed costs for personnel and other external services such as office rents, consumables and other costs related to the normal course and conduct of business.

	∆	31.12.2023	31.12.2022
Operating expenses	в %	thousand BGN	thousand BGN
- Interest expenses	8%	(23 387)	(21 710)
- Losses on sale of investments in subsidiaries, transactions with financial instruments and subsequent valuations	(99.4)%	(445)	(69 028)
- Other financial expenses	(90)%	(646)	(6 197)
- Expenditure on external services	15%	(5 450)	(4 733)
- Personnel expenses	4%	(1 016)	(980)
- Amortization expense	(30)%	(207)	(295)
- (Accumulated)/Reversed impairment loss on financial assets, net	(185)%	1 958	(2 310)
Total operating expenses	(72)%	(29 193)	(105 253)

Analysis of part of the costs:

Interest expenses:

Interest expenses increased for the reporting period by nearly BGN 1.7 million in connection with new financing for the development of subsidiaries absorbed in 2022 and a new bond loan issued. Interest expenses can be grouped into three categories depending on the financing, namely:

• Interest on loans from banks and non-bank financial institutions in the amount of BGN 9.6 million, reporting an increase of BGN 4.6 million;
• Interest on bond loans in the amount of BGN 11.2 million with a reported reduction of BGN 3.9 million. BGN;
• Interest on received loans and leases from related and third parties in the amount of BGN 2.5 million - an increase of BGN 1 million was reported.

Losses on sale of investments in subsidiaries, transactions with financial instruments and subsequent valuations (shown below):

During the current period - 2023:

✓ Losses from operations with investments and financial instruments include - BGN 444 thousand including:

- BGN 431 thousand from transactions with purchased own Euro Commercial Paper (ECP) with ISIN: XS2565406654.

• BGN 13 thousand fees and commissions for services of an investment intermediary.
• ✓ Costs from revaluations of financial instruments – BGN 1,000.
• ✓ Разходи от преоценки на финансови инструменти – 1 хил. лв.
  • from revaluation of own bonds bought by EMTN Program in EUR with ISIN BG2100002224

During the comparable period - 2022:

• ✓ Losses on sale of investments in subsidiaries include:
  • BGN 13 465 thousand in connection with the transfer of ownership of the shares of Eurolease Group AD to a third party;
  • BGN 5 thousand in connection with the transfer of ownership of the shares of Daru Invest S.A. to a third party.
• ✓ Losses from operations with investments and financial instruments include:
  • BGN 536 thousand loss from operations with purchased own bonds with ISIN BG2100002224;
  • BGN 405 thousand loss from operations with purchased own bonds from EMTN Program in EUR with ISIN XS1731768302;
  • BGN 139 fees and commissions for services of the investment intermediary Euro-Finance AD, a subsidiary;
  • BGN 39 thousand loss on operations with purchased own Euro Commercial Paper (ECP) with ISIN: XS2430057443;

BGN 6 thousand loss on operations with other financial instruments.

• ✓ Costs from revaluations of financial instruments include:
  • BGN 1 701 thousand from the revaluation of own bonds purchased by EMTN Programme in EUR with ISIN XS1731768302;
  • BGN 10 thousand from revaluation of repurchased own Euro Commercial Paper (ECP) with ISIN: XS2430057443;
  • BGN 4,000 from revaluation of purchased own bonds from EMTN Program in EUR with ISIN BG2100002224
  • BGN 4 thousand from revaluation of other financial instruments.

CASH FLOWS

Cash flows for the nine months of 2023 are mainly generated from the Company's financing and investing activities related to the restructuring of long-term debt, as well as in the accumulation of free cash from subsidiaries and directing it to finance the current and investing activities of other subsidiaries.

Cash flow analysis

	∆	31.12.2023	31.12.2022
Cash flows	%	thousand BGN	thousand BGN
- Net cash flow from operating activities	(589)%	23 990	(4 907)
- Net cash flow from investing activities	(299)%	44 258	(22 198)
- Net cash flow from financing activities	(341)%	(70 382)	29 236
Net cash flows	(200)%	(2 134)	2 131
- Effect of expected credit losses	-	-	(8)
- Cash and cash equivalents at the beginning of the year	1846%	2 238	115
Cash and cash equivalents at the end of the period	(95)%	104	2 238

NON-CASH TRANSACTIONS

The Company's non-cash transactions for the 2023 and 2022 can be traced in Note 27. "Non-cash transactions" of the Annexes to the interim condensed individual financial statements for the nine months of 2023.

THE RELATED PARTIES' TRANSACTIONS (transactions with subsidiaries and other related parties under common control)

The transactions carried out by the Company with related parties for 2023 and 2022 can be traced in Note 29.1.1. " Transactions with subsidiaries and other related parties under common control" of the Notes to the condensed interim individual financial statements for the nine months of 2023.

Transactions with key management personnel are available in Note 29.1.2. from the same document.

LITIGATIONS

As of 31.12.2023 there are no significant legal proceedings instituted against the Company.

Warranties and provided guarantees

The company is a co-debtor/guarantor for loans received from banking/financial institutions as follows:

Business	Third / Related	Amount in EUR'000 as of	Amount in BGN'000 as of	Amount in EUR'000 as of	Amount in BGN'000 as of	EXPOSURE MATURITY AS OF 30.06.2023 (EUR'000)			after
area	parties	31.12.2023	31.12.2023	31.12. 2022	31.12.2022	2024	2025	2026	2027	2028	2028
Energy sub-holding
Corporate payment guarantee	Related parties	3 500	6 845	3 500	6 845	3 500	-	-	-	-	-
Working capital loans	Related parties	20 189	39 486	19 238	37 626	5 430	-	-	14 759	-	-
Corporate guarantee in connection with an acquisition	Related parties	220 000	430 283	220 000	430 283	-	-	-	220 000	-	-
Insurance sub-holding
Bond loan	Related parties	-	-	10 000	34 622	-	-	-	-	-	-
Parent company
Bank loans for investment purposes	Related parties	5 000	9 779	5 000	9 779	5 000	-	-	-	-	-
Group of leasing
companies* For financing leasing activity	Related parties until 30.06.2022	18 519	36 220	21 891	42 815	7 749	5 534	4 048	1 018	170	-
Group of automotive companies*
Working capital loans	Related parties until 30.06.2022	5 167	10 106	4 788	9 365	2 542	523	523	523	523	533
	TOTAL:	272 375	532 719	284 417	571 335	24 221	6 057	4 571	236 300	693	533

* Eurohold Bulgaria AD is selling the companies from the automotive and leasing segment in 2022. It is expected that the new owners will act as a guarantor for the mentioned loans from banking/financial institutions.

In connection with financing as part of a package deal, a pledge of 35% shares of a subsidiary was established.

In connection with a concluded contract for financing by a financial institution, a pledge of shares of a subsidiary company was established (Note 20).

In connection with a contract concluded for financing by a credit institution in 12.2022, renegotiated in 09.2023, a pledge of shares of a subsidiary company and a pledge of bonds were established.

The company is a guarantor under issued bank guarantees **, as follows:

Company of:	Amount in EUR'000 as of 31.12.2023	Amount in BGN'000 as of 31.12.2023	Amount in EUR'000 as of 31.12.2022	Amount in BGN'000 as of 31.12.2022	MATURITY OF EXPOSURE AS OF 31.12.2023 (EUR'000)
Automotive subholding (related party until 30.6.2022)	2 050	4 009	2 050	4 009	2024
Automotive subholding (related party until 30.6.2022)	1 662	3 251	1 800	3 520	2024
TOTAL:	3 712	7 260	3 850	7 529

** Eurohold Bulgaria AD is selling the companies from the automotive and leasing segment in 2022. It is expected that the new owners will act as a guarantor for the mentioned loans from banking/financial institutions.

The liabilities of the Company have guaranteed by related parties are as follows:

			Guaranteed amount as of 31.12.2023 in original
Company/ Guarantor	Currency	Guaranteed liability	currency	Maturity date
		Issue of bonds (EMTN
Euroins Insurance Group AD	EUR	programme)	70 000 000	07.2026
		Issue of bonds (EMTN
Euroins Insurance Group AD	EUR	programme)	10 000 000	12.2026
Euroins Insurance Group AD			15 084 000	06.2025
Subsidiary share pledge and debt securities		Loan from financial
pledge established.	EUR	institution

Established guarantees in favor of the Company:

			Guaranteed amount as of
			31.12.2023 in original
Company/ Guarantor	Currency	Guaranteed liability	currency	Maturity date
Milena Milchova Cuentcheva, Procurator	BGN	Management guarantee	3 330	03.2024 *

*Automatic renewal with 1 year.

REVIEW OF THE MAIN RISKS

This section describes our material risks, including how we manage them. If any of the risks described in this section occur, even partly or in combination with other risk factors or circumstances, it could have a material adverse effect on the Company.

The Company's future activity results may differ materially from past results as a consequence of the occurrence of the risks described herein. Taking into consideration the dynamic macroeconomic environment at this time, other risks and/or uncertainties that are not currently known or that we are unable to estimate or are considered immaterial at this time may also occur and they could have a material adverse effect on the Company's business.

***

We draw attention to the fact that Eurohold Bulgaria AD develops its business through its subsidiaries, in this regard the Company's financial position, operating results and development prospects are directly dependent on the position, results and prospects of its subsidiaries. Each business sector, including the segments in which we operate, is subject to common risks, such as changes in the macroeconomic environment, social, political, financial, regulatory and legislative changes. Our main risks and uncertainties are those that may have the most significant impact on our key group priorities.

***

a) NON-SYSTEMATIC RISKS

Non-systematic risks are associated with the general investment risk specific to a company, as well as the sector (industry) of the economy in which it operates.

Risks related to Eurohold's operations and structure

As the activity of Eurohold Bulgaria AD is related to the management of other companies, it cannot be attributed to a separate sector of the national economy and it is exposed to the sectoral risks of the subsidiaries. Eurohold's group companies operate in the following sectors: "energy", "insurance" and "investment brokerage and asset management".

The impact of the individual risks of the subsidiaries is proportional to the share of the respective sector in the structure of Eurohold's long-term investment portfolio.

The Holding's main activities are carried out through its subsidiaries, which means that its financial performance is directly linked to the financial performance and development trends of its business units within the economic group.

The existence of companies in the portfolio whose net sales revenues are also generated by products sold to other subsidiaries (related parties) places the performance of these companies in direct dependence on the level of profitability of the customers (related parties), which may negatively affect the profitability of the entire group.

The main risk associated with the operations of Eurohold Bulgaria AD is the possibility of a reduction in the sales revenues of the companies in which it participates and on the receipt of dividends. In this regard, it may have an impact on the company's revenue growth as well as on the change in its profitability.

Deterioration in the performance of one or more subsidiaries could lead to a deterioration in results on a consolidated basis. This is also linked to the company's share price as a result of investors' expectations of

the company's and Eurohold Group's prospects, as the share market price takes into account the business potential and assets of the economic group as a whole.

Risks related to Eurohold's development strategy

Eurohold's future earnings and economic value depend on the strategy adopted by the senior management team of the company and its subsidiaries. Unsuitable strategy choice could lead to significant losses.

Eurohold Bulgaria AD aims to manage the risk of strategic errors by continuously monitoring the various stages in the implementation of its market strategy, and the results thereof. This is essential in order to be able to react in a timely manner if a change is required at a particular stage in the strategic development plan. Untimely or inappropriate changes in strategy could also have a material adverse effect on the Company's business, operating results and financial condition.

Risks related to the management of Eurohold

The Company's management risks might be:

• making the wrong decisions about the day-to-day investment management and liquidity of the Company and the Group as a whole, both by Eurohold's senior management and operational staff;
• management's inability to start the implementation of planned projects or lack of suitable staff for specific projects;
• possible technical errors of the unified management information system;
• possible errors of the internal control system;
• the key staff leaving and the inability to recruit staff with the necessary qualities;
• risk of excessive increases in management and administration costs leading to a reduction in the overall profitability of the company.

Risks associated with Eurohold's inability to raise capital to fund its strategic objectives

The capability of Eurohold Bulgaria AD to grow and implement its strategies depends to a large extent on its capacity to raise capital. The volatility of the financial markets, as well as any apparent lack of trust between financial institutions, could make it significantly more difficult to raise long-term capital on reasonable terms.

The management of Eurohold Bulgaria AD supports the efforts of the Group's subsidiaries to attract bank resources for investment and to use the opportunities provided by this type of financing to secure working capital. The volumes of these raised funds are maintained at certain levels and are authorised after demonstrating the economic efficiency for each company.

The Management policy is to raise financial resources from the market mainly in the form of equity securities (shares), debt instruments (bonds) and borrowings from banking and non-banking institutions. The Company use them to invest in its subsidiaries, to finance their projects by increasing their capital or providing loans. Additionaly, Eurohold Bulgaria AD monitors the capital structure of each company and takes action to maintain the regulatory capital requirements for each business segment by increasing their capital.

Risk of lack of liquidity

Liquidity risk is associated with the possibility that "Eurohold Bulgaria" JSC will not repay its obligations in the agreed amount and/or in due time when they become due. The issuer seeks to minimize this risk through optimal cash flow management within the group itself. The group applies an approach that aims to provide the necessary liquid resource to meet obligations under normal or extraordinary conditions, without incurring unacceptable losses or damaging the reputation of individual companies and the economic group as a whole.

Subsidiaries make financial planning, with which they aim to meet the payment of and their current expenses for a period of ninety days, including the servicing of financial obligations. This financial planning minimizes or completely excludes the potential effect of the occurrence of extraordinary circumstances.

Risk of possible transactions between companies in the group, the terms of which differ from the market's

Relationships with related parties arise under temporary financial assistance agreements of subsidiaries and in connection with transactions related to the ordinary business activities of subsidiaries.

The risk of possible transactions between the companies in the Group under conditions that differ from market terms is expressed in: a) assuming a risk to achieve a low yield from interest on provided intra-group financing; b) when carrying out intra-group commercial transactions, there is a risk that sufficient revenues will not be generated, and hence a good profit for the respective company. At a consolidated level, this may reflect negatively on the profitability of the entire group.

Within Eurohold, transactions between the parent company and the subsidiaries and between the subsidiaries themselves, arising from the nature of their core business, take place on an ongoing basis. All transactions with related parties are carried out on terms that do not differ from normal market prices and in compliance with IAS 24 'Related Party Disclosures'.

Eurohold Bulgaria AD operates through its subsidiaries, which means that its financial results are directly dependent on the financial performance, development and prospects of its subsidiaries. Poor performance of one or several subsidiaries could lead to a deterioration of financial results on a consolidated basis.

b) SYSTEMATIC RISKS

Macroeconomic risk

Macroeconomic risk is the risk of shocks that may affect economic growth, population income, supply and demand, the profits generated by economic entities, etc. These shocks include global economic and business conditions, fluctuations in national currencies, political events, changing legislation and regulatory requirements, priorities of national governments, etc. Trends in the macroeconomic environment affect the market performance and the final results of the activity of all sectors of the economy. Bulgaria has an open economy and its development depends directly on the international market conditions.

Trends in the macroeconomic environment affect the market performance and the final results of the activity of all sectors of the economy.

The outcome of some risks related to the international environment will depend to a large extent on the plans and preventive measures of individual countries and international institutions, which is also evident from the latest global economic crisis and the Covid-19 pandemic. The risk of the international environment influence on companies cannot be diversified and affects all players, but on the other hand, it can become an engine for the development and implementation of innovations and digitalization, which can drastically change and increase the efficiency of business on a global scale.

The macroeconomic situation and economic growth on a global scale are of fundamental importance for the development of Eurohold Bulgaria AD and its subsidiaries, including the state policies of the respective countries in which it operates and, in particular, the regulations and decisions taken by the respective Central Banks , which affect monetary and interest policy, exchange rates, taxes, GDP, inflation, budget deficit and external debt, unemployment rate and income structure.

Macroeconomic trends such as: the global economic crisis; the impact of the force majeure event that occurred at the beginning of 2020 due to the worldwide Covid-19 pandemic and the measures taken by the governments of the affected countries; slowing down of economic growth; the risk of systematic global financial fluctuations; periodic fiscal imbalances; changes in exchange rates for certain currencies; volatility in the prices of energy products; economic and political uncertainty in some regions of the world; the reduction of economic and consumer activity, may have an adverse effect on the business results, financial condition, profit and profitability or expected growth of the Group.

The development of Bulgaria's economy faces the risk of external influences and depends directly on international market conditions. The presence of unfavorable macroeconomic conditions in Bulgaria, including an increase in unemployment and inflation, as well as fiscal instability may have a material adverse effect on the Company's business, its financial condition and/or its results of operations.

The Eurohold's group carries out operations in Bulgaria and additionally in a number of other European countries, respectively its overall financial position and the results of its operations are affected by the economic, legal and political conditions in these countries. Any deterioration in macroeconomic conditions in such countries or in the wider CEE / SEE region could adversely affect certain products and services offered by the group and result in lower revenues than originally planned. Moreover, general changes in government policy and regulatory systems in such jurisdiction may increase the Group's operating costs and capital requirements. Any future periods of economic slowdown or slow economic growth in any of the markets in which the Group operates could have an adverse effect on the Group's business, financial condition, cash flows, results of operations or prospects.

Manifested macroeconomic risks in 2023 and at the date of preparation of this Report.

The Covid-19 pandemic

During the period of the historical financial information under review, we witnessed macroeconomic risk arising from the scale and spread of the coronavirus (COVID-19) pandemic, which affected the entire world and dramatically affected global macroeconomics and economic growth. Due to the COVID-19 pandemic, at the end of the first and throughout the second quarter of 2020, much of the global economy slowed its growth, and activity in some sectors was almost completely suspended. As a result of the measures imposed by governments, a significant amount of international trade was impeded. Globally, the subsequent business results from the economic disruptions caused by the pandemic were: a worsening economic outlook, a significant increase in expected credit losses and other impairments, and a decrease in revenue due to lower volumes and reduced customer activity.

In 2021 and early 2022, the Covid-19 pandemic continued to impact the health system, the social environment and the economy. Deviations in the prices of energy resources had a strong impact, as did the displacement of trade relations, leading to a worldwide wave of intense inflationary pressure. After the start of mass vaccination, a gradual recovery of the global and local economy and the expected recovery of global activity also began. The labor market also developed favorably, and unemployment continued to decline. The banking system remained stable, well capitalized, with high levels of liquidity meeting regulatory requirements.

The latest wave of the coronavirus actively developed in early 2022 led to a new slowdown in economic recovery in Europe, accompanied by high inflation, absences from work and work in an online environment, increasing shortages of materials, equipment and labor. Record energy prices have further increased the cost of living and reduced the purchasing power of Europeans, especially in low-income households. In general, the impact of the pandemic on economic activity has generally weakened over time, including that the slowdown in the recovery did not last long, given the abatement of the last wave and the lifting of restrictive measures.

In the future, possible new waves of infection, correspondingly imposed anti-epidemic measures and prolonged staff shortages could prevent recovery / or lead to a further deterioration of economic activity. They could also delay the functioning of critical supply chains for a longer period of time. On the other hand, weaker demand growth in the near term may help overcome supply constraints a little sooner than expected.

Apart from the general effects of the pandemic on all economic entities, it does not directly affect the currently existing businesses of the companies of the Eurohold group. During the Covid-19 active period, only the automotive and leasing businesses were affected, but they were sold in the middle of 2022. Bearing this in mind, possible new waves of the spread of Covid-19 would not have significant segmental effects on the energy, insurance and financial - investment business in the group. At this stage, management's assessment of the peak periods of the pandemic is that, with timely and flexible measures, the Eurohold's group has managed to cope with the consequences of the situation and reduce the impact on it as much as possible.

Management continues to monitor new manifestations and effects of the pandemic to take preventive measures and solutions in order to preserve the health of workers and minimize the impact of the crisis caused by Covid-19.

Military actions on the territory of Ukraine

The hostilities between Russia and Ukraine have received widespread international condemnation and numerous countries have imposed sanctions on assets and operations owned by the Russian state and certain individuals. This conflict began at a time when the world economy, including Bulgaria's one, was gaining momentum after the peak of the Covid-19 crisis and calls into question the previous forecasts for the economic growth of Europe and Bulgaria in particular. The IMF notes that the sanctions imposed by a number of countries against Russia have an impact on the global economy and financial markets, and will have significant side effects in other states as well. In many countries, the crisis generated adverse shocks to both inflation and activity amid already heightened price pressures. Central banks closely monitor the impact of rising international prices on domestic inflation, with a view to monitoring and, where necessary, taking appropriate, carefully considered responses. Fiscal policy will need to support the most vulnerable households to offset rising living costs.

The economic consequences of the military conflict in Ukraine cannot be fully assessed at this stage of development, but they indicate extremely serious price effects on the overall global economy, substantial growth in inflation, and difficulty in supplying energy resources. Other manifested effects of the beginning of hostilities are: a decline in economic growth, the risk of a humanitarian crisis in connection with a refugee wave of Ukrainian citizens, an uncertain international environment, problems with gas supplies and a significant increase in gas prices, a surge in prices when trading with electricity, fuels and other petroleum products, supply chain constraints due to restrictive and logistical problems, high volatility in stock markets under the pressure of fluctuations in fuel and other basic resource markets, increased interest rates, a shaky banking system, etc.

If the conflict continues to develop, the economic damage will be significant for all sectors of the economy, both of Bulgaria and the EU, including the sectors and regions in which the Eurohold's group operates. Eurohold's management follows with concern the development of the military conflict between Russia and Ukraine, and evaluates its impact on the Group's business, analyzing the impact on both sides of the conflict in order to take measures, decisions and concrete actions to mitigate the effects on the group. Eurohold Bulgaria AD, through its subsidiary Euroins Insurance Group AD, owns investments in two insurance companies in Ukraine.

Eurohold Bulgaria JSC strives to monitor the probability of the manifestation of the macroeconomic risk and develops group measures to mitigate as much as possible the impact of the effects that the presence of this risk may have. However, the Holding cannot completely exclude and limit its influence on the business, financial position, profits and cash flows at the group level. There is also the possibility that the occurrence of this risk may exacerbate other risks or a combination of risks.

At the end of 2022, the management of Eurohold Bulgaria and the subsidiary Euroins Insurance Group decided to release the insurance group from its participation in the companies in Belarus and Russia (associated participation). On December 30 2022, Euroins Insurance Group (EIG) signed an agreement for the sale of the two companies, as from the date of the agreement, EIG and Eurohold will not consolidate the results of these companies in their report. Until the date of the transaction, EIG owned 100% of the company's capital in Belarus and 48.61% of that in Russia. These participations added insignificant values to the consolidated results against the background of the assets of the insurance subholding and the assets of Eurohold Bulgaria AD. EIG's business in the two countries accounted for less than 1% of the insurance group's 2022 revenue.

Macroeconomic forecast

According to the latest Economic Bulletin of the ECB, no. 8/2023 - The global economy started this year at a stronger pace than in the fourth quarter of 2022. However, continued uncertainty is intensifying headwinds for global growth, including high inflation, tightening global financial conditions and geopolitical tensions. Inflation eased in October and November 2023, falling year-on-year to 2.4% in November, according to Eurostat's flash estimate. The December 2023 projections indicate that, regardless of the expected temporary increase in inflation, the disinflation process in the core price index is expected to continue. The labor market continues to support the economy. The unemployment rate stood at 6.5% in October and employment rose 0.2% in the third quarter. According to December 2023 forecasts, available near-term indicators suggest that economic activity will remain weak in the fourth quarter of 2023. However, growth is expected to pick up from early 2024 onwards, with real disposable income increasing, supported by falling inflation, steady wage growth and sustained employment, and export growth catching up with improving external demand. Average annual real GDP growth is expected to slow from 3.4% in 2022 to 0.6% in 2023, then recover to 0.8% in 2024 and stabilize at 1 .5% in 2025 and 2026.

In the Macroeconomic Forecast of the BNB from December 2023, the expectations for the growth of the real GDP for 2023 are to finally amount to 1.8% (compared to 3.9% in 2022), which will be determined mostly by the growth of private consumption and the positive contribution of net exports, while the change in inventories will have a significant negative contribution to the change in economic activity. Real GDP growth is forecast to accelerate to 3.4% in 2025, mainly due to the expected significant acceleration of investment growth, mainly driven by the assumptions made for the implementation of the projects under the National Recovery and Resilience Plan (NRSP). Risks to the real GDP growth forecast are assessed as balanced for 2023, while for 2024 and 2025 risks to lower growth than in the baseline prevail, given the deepening global geopolitical conflicts and the still unrealized fully affected by the tightening of monetary conditions in Europe and the US.

Source: www.bnb.bg

"Eurohold Bulgaria" AD strives to monitor the probability of the manifestation of the macroeconomic risk and develops group measures to mitigate as much as possible the impact of the effects that the presence of this risk may have. However, the Holding cannot completely exclude and limit its influence on the business, financial position, profits and cash flows at the group level. There is also the possibility that the occurrence of this risk may exacerbate other risks or a combination of risks.

Political risk

Political risk reflects the impact of political processes in the country on the economic and investment process and, more specifically, on the return on investment. The degree of political risk is determined by the probability of changes in an unfavorable direction of the government's long-term economic policy, which may have a negative impact on investment decisions. Other factors related to this risk are possible changes in the legislation and in the tax system regarding the economic and investment climate in the country.

The Republic of Bulgaria is a country with political and institutional stability, based on modern constitutional principles such as a multi-party parliamentary system, free elections, ethnic tolerance and a clearly defined system of separation of powers.

Among the political risks are the successful continuation of Bulgaria's integration into the European Union (EU). After the admission of our country to the EU at the beginning of 2007, economic reforms were imposed in the name of the integration of our country into the European Union. In the future, economic growth will depend on the political will to continue economic reforms, with the aim of introducing the best market practices of the EU in economic, political, social, legal, financial terms.

Despite the stable policy pursued so far, there is no certainty that factors will not appear in the country that will cause social and political tension, lead to a significant and abrupt change in the political and economic conditions, which may have a significant adverse effect on business. Currently, the political situation in Bulgaria is not particularly stable. This instability manifested itself in April 2021 since the country faced the inability to form a regular and stable government. Domestic political uncertainty continues with a caretaker government currently in place. This also contributed to a lag in Bulgaria's preparations for joining the Eurozone, which is why the same is being postponed at this stage. At the moment, the country is governed by the coalition formed in June 2023 and represents Bulgaria's first stable government in the last two years, after five parliamentary elections.

Given the current political situation, it is possible that political and public disagreements may arise in the country regarding possible legislative changes, and in particular those concerning the economic and investment climate in the country. Also, at this moment, there is no political consensus in the country regarding the complicated geopolitical situation in the region due to the development of the Russian-Ukrainian crisis.

A potential political instability in the country and in Europe could have a significant adverse effect on the Company and its group's business, operating results and financial condition. The company through its subsidiaries operates in the regions affected by the military conflict and in this sense is also vulnerable to foreign policy risks and their effects on the economy of the country, the regions affected by the conflict and Europe as a whole.

Given the uncertainty of the outcome of the emerging dynamic political and economic environment, users of this Report should consider the presence of political risk according to their own understanding and expectations.

Country's credit risk

Credit risk is the likelihood of a country's international credit ratings deteriorating. Low credit ratings of the country can lead to higher interest rates, more difficult financing conditions for economic entities, including Eurohold.

Credit ratings serve as a basis for measuring and determining a country's credit risk. The latest credit ratings awarded to Bulgaria are as follows:

On 25.11.2023, the international rating agency S&P Global Ratings raised the outlook for the country's rating to positive from stable and confirmed Bulgaria's long-term and short-term credit rating in foreign and local currency 'BBB/A-2'.

The positive outlook reflects the opinion of the rating agency that there is at least a one in three probability that Bulgaria will join the Eurozone in the next 24 months. One of the main political goals of the government is the country's accession to the Eurozone, which is planned to be achieved from January 1, 2025. Bulgaria may not meet all the criteria for convergence, especially that of price stability. Even if Bulgaria does not join the eurozone in 2025, the rating agency expects that the accession will likely be delayed until January 1, 2026.

S&P Global Ratings rates Bulgaria's fiscal performance as one of the best among Central and Eastern European countries and expects current fiscal plans to result in deficits below 3% of GDP in the period to 2026, keeping net government debt below 20 % of GDP. They expect the current account deficit to remain low and overfinanced by EU funds and foreign direct investment flows, limiting the need for external financing and maintaining a stable external position.

Source: www.minfin.bg

On 28.10.2023, the international rating agency Fitch Ratings confirmed the long-term credit rating of Bulgaria in foreign and local currency 'BBB' with a positive outlook

Bulgaria's rating is supported by the country's strong external and fiscal position compared to countries with the same rating, the reliable political framework of EU membership and the long-term functioning of the currency board regime. On the other hand, the low share of investment relative to GDP and unfavorable demographic factors weigh on potential economic growth and public finances in the long term.

The positive outlook reflects the country's plans for eurozone membership, which could lead to further improvements in the country's external position indicators. Despite the delay in the process of joining the euro area, the analysts of the rating agency believe that there is a broad political commitment to adopt the euro in 2025. After the formation of the new government, the parliament has accepted all the remaining commitments after the country's entry into ERM II, and the amendment of the central bank law is expected to be approved by the end of 2023.

Factors that could lead to negative rating actions are: lack of progress in joining the Eurozone due to continued political instability or failure to meet convergence criteria; lower medium-term growth prospects, caused for example by a significant adverse macroeconomic shock or inflation that has persisted at high levels.

Source: www.minfin.bg

The adoption of a consistent and long-term economic policy in Bulgaria would be a valid reason for the potential increase in the country's credit rating, which in turn would have a favorable impact on the economic group of Eurohold expressed in the Group's financing opportunities. In the event of a downgrading of Bulgaria's credit rating, as a result of the unstable governance of the country, there may be a negative impact on the Group and on the cost of financing, except in the case that its loan agreements are with fixed interest rates.

Inflation risk

Inflation risk is associated with the likelihood that inflation will affect real investment returns. The main risks related to the inflation forecast relate to the dynamics of international prices and the rate of economic growth in Bulgaria. International prices of raw materials and food products may rise more significantly as a result of political crises such as are currently available or an increase in demand. The limited supply of some agricultural goods and especially cereals internationally in connection with adverse climatic events or force majeure circumstances may additionally cause higher inflation in the country.

According to NSI data, according to the consumer price index (CPI), the monthly inflation in December 2023 is 0.3%, and the annual inflation for December 2023 compared to December 2022 is 4.7%. The average annual inflation for the period January - December 2023 compared to the period January - December 2022 is 9.5%.

According to HIPC, monthly inflation in December 2023 is 0.3%, and annual inflation for December 2023 compared to December 2022 is 5.0%. The average annual inflation for the period January - December 2023 compared to the period January - December 2022 is 8.6%.

According to the price index for the small basket, in December 2023 an increase of 0.2% was recorded on a monthly basis and an increase of 4.6% since the beginning of the year.

Source: www.nsi.bg

According to the Macroeconomic Forecast of the BNB from December 2023, the annual inflation, measured by the harmonized index of consumer prices (HIPC), followed a tendency to slow down in 2023 and amounted to 5.0% at the end of the year (compared to 14.3% at the end of 2022 .). It is expected to slow to 3.1% at the end of 2024 and remain at the same level at the end of 2025.

Source: www.bnb.bg

In general, inflation can affect the amount of the Company's expenses, since part of the company's liabilities are interest-bearing. Their service is linked to the current interest rates, which also reflect the inflation rates in the country. Therefore, the maintenance of low inflation levels in the country is considered a significant factor for the activity of the Eurohold group.

At the present moment and in general, the currency board mechanism provides guarantees that the inflation in the country will remain under control and will not have an adverse impact on the economy of the country, and in particular on the activities of the Company and its group, and from there on its possibility to service its debt positions.

However, the current geopolitical situation in Europe makes the outlook for inflation in the Eurozone very uncertain and depends crucially on the development of the military conflict, the impact of current sanctions and possible further measures.

Given this, users of this Report should carefully consider and account for both current levels of inflation risk and future opportunities for its manifestation.

Currency risk

This risk is related to the possibility of depreciation of the local currency. For Bulgaria, specifically, this is a risk of premature rejection of the conditions of the Currency Board at a fixed exchange rate of the national currency, which would lead either to a devaluation of the leva or to an appreciation of the leva compared to foreign currencies. Any significant depreciation of the BGN may have a significant adverse effect on business

entities in the country, including the Company. Risk also exists when the income and expenses of a business entity are formed in different currencies.

Given the policy adopted by the government and the BNB, expectations are for the currency board to be retained until the country's admission to the Eurozone. Bulgaria is expected to join the currency mechanism with its existing currency board regime, where the Bulgarian lev is fixed at 1 euro = 1.95583 leva. The National Plan for the introduction of the euro in Bulgaria describes the principles, the institutional and legalnormative framework for the adoption of the euro, as well as the main activities for the successful introduction of the euro from January 1, 2024. The document examines all the important operational activities and measures that participants in the preparation for the introduction of the euro - the private, public sector and citizens - should carry out as part of the process of introducing the euro.

The activity of the Company does not presuppose exposure to significant currency risk, because almost all its operations and transactions are denominated in Bulgarian levs and euros, and the latter has a fixed exchange rate against the lev.

Significant changes in the various exchange rates of subsidiaries outside Bulgaria - operating in Romania, North Macedonia, Ukraine, Georgia and Belarus, Macedonian Denar (MKD), Ukrainian Hryvnia (UAH), Georgian Lari (GEL) and Belarusian Ruble (BYR), whose exchange rate is determined almost freely in the local currency market would have a corresponding reflection in Eurohold's group results. The consolidated revenues of "Eurohold Bulgaria" AD will be exposed to currency risk depending on the movement of these currencies against the euro.

Interest rate risk

Interest rate risk is related to the possibility of a change in the prevailing interest rates in the country. Its impact is expressed by the chance that the net income of companies may decrease due to an increase in the interest rates at which the Issuer finances its operations. Interest rate risk is included in the category of macroeconomic risks due to the fact that the main prerequisite for a change in interest rates is the occurrence of instability in the financial system as a whole. This risk can be managed through the balanced use of different sources of financial resources.

An increase in interest rates would, all other things being equal, affect the cost of the financial resources used by the Company in implementing various business projects. It may also affect the Company's cost base as a significant portion of the Company's liabilities are interest bearing and their servicing is linked to current interest rates. The current trend is towards gradual increase in interest rates by the Central Banks.

Trends on interest rates, according to the ECB, are for a significant increase at a steady pace until reaching restrictive levels in order to ensure a timely return of inflation to the medium-term target of 2%.

Risk of high levels of unemployment

The risk associated with unemployment is characterized by a drop in the demand for labor force, influenced by the real aggregate demand in the economy, as a result of which the real purchasing activity of a part of the economic entities decreases.

High levels of unemployment can seriously threaten economic growth in the country, which in turn can lead to a contraction of consumption and a decrease in the revenues realized by economic entities in the country, including the revenues realized by the Company and its subsidiaries.

According to the data of the National Statistical Institute (NSI), the following indicators were recorded for the third quarter of 2023:

• The unemployment rate was 4.0%, or 0.4 percentage points higher than in the third quarter of 2022.
• The employment rate for the population aged 15 64 years decreased by 0.6 percentage points compared to the same quarter of 2022 and reached 71.5%.
• The coefficient of economic activity for the population aged 15 64 years is 74.6%, and compared to the third quarter of 2022, it decreases by 0.2 percentage points.

▪ Discouraged persons aged 15 - 64 are 36.0 thousand, or 3.6% of the economically inactive persons in the same age group.

Source: www.nsi.bg

Risks associated with regulatory changes. Regulatory risk

The Company's results may be impacted by regulatory changes. The Eurohold Group operates in a highly regulated environment in various European countries. The possibility of more radical changes in the regulatory framework, in the interpretation or practice of implementing legislation, and in the divergence of legislation and regulations in Bulgaria and in the countries in which the Company operates and his Group, could have an adverse effect on its business as a whole, its operating results, and its financial condition.

Financial risk

Financial risk represents the additional uncertainty to the investor of receiving revenue in cases where the company uses borrowed or leveraged funds. This additional financial uncertainty adds to the business risk. Where part of the funds with which the company finances its activities are in the form of loans or debt securities, the payments for these funds represent a fixed obligation.

Risk of increased competition

All sectors in which the Eurohold Group subsidiaries operate are characterised by a highly competitive environment. The future success of the Group will depend on the ability of Eurohold and its subsidiaries to remain competitive compared to other companies operating in a given market segment.

c) RISK MANAGEMENT AND MINIMISATION MECHANISMS

The elements outlining the framework for the management of individual risks are directly related to specific procedures for the timely prevention and resolution of potential difficulties in the operations of Eurohold Bulgaria AD. They include ongoing analysis in the following areas:

• market share, pricing policy, market research and market development and market share studies;
• active investment management in different sectors and industries;
• a comprehensive asset and liability management policy for the Company and the Group to optimise the structure, quality and return on assets;
• optimising the structure of funds raised with a view to ensuring liquidity and reducing financial costs across the Group;
• effective cash flow management at group level;
• optimising administration, management and external service costs;
• human resources management

Overall risk management is focused on minimising potential negative effects that could impact the Group's financial performance. Financial risks are identified, measured and monitored on an ongoing basis using various controls to determine appropriate pricing for the services and products offered by Eurohold's Group companies and for the borrowed capital raised by them. An adequate assessment of the market circumstances, the borrowed capital, the investments and the forms of maintenance of the free liquid funds is carried out, without allowing unjustified concentration of a given risk.

The occurrence of unforeseen events, incorrect assessment of current trends, as well as a host of other microand macroeconomic factors, may affect the judgement of the Company's management team.

16:17:52 +02'00'

INFORMATION ON LARGE RELATED PARTY TRANSACTIONS IN 2023

All transactions concluded with related parties, including material ones, are disclosed in this report and in the Appendices to the interim condensed individual financial statement for 2023.

25 January 2024

KIRIL BOSHOV,	KIRIL IVANOV BOSHOV	Digitally signed by KIRIL IVANOV BOSHOV Date: 2024.03.25 16:17:33 +02'00'
Bulgaria AD		Chairman of the Board and Executive Director of Eurohold
	ASEN MINCHEV	Digitally signed by ASEN
	MINCHEV	MINCHEV MINCHEV Date: 2024.03.25

ASSEN MINCHEV,

Executive Director of Eurohold Bulgaria AD

Interim condensed separate statement of profit or loss and other comprehensive income for 2023

		31.12.2023	31.12.2022
	Notes	BGN '000	BGN '000
Revenue from operating activities
Dividend income	3	1 306	2 102
Gains from the sale of investments in subsidiaries, transactions with financial instruments and subsequent
valuations	4	1 194	1 202
Interest income	5	705	359
Other financial revenue	6	19	21
		3 224	3 684
Expenses on operating activities
Interest expenses	7	(23 387)	(21 710)
Losses on sale of investments in subsidiaries, transactions with financial instruments and subsequent valuations	8	(445)	(69 028)
Other finance expenses	9	(646)	(6 197)
Hired services expenses	10	(5 450)	(4 733)
Employee benefits expense		(1 016)	(980)
Depreciation	14.1, 14.2	(207)	(295)
(Expenses) / Reversal of expenses from impairment of financial assets, net	11	1 958	(2 310)
		(29 193)	(105 253)
Loss from operating activities		(25 969)	(101 569)
Other revenue/(expenses), net	12	2 214	(578)
Net Loss		(23 755)	(102 147)
Total comprehensive loss for the year		(23 755)	(102 147)

This interim condensed separate financial statement has been approved by the Management Board of Eurohold Bulgaria AD on 25 January 2024.

SALIH REDZHEPOV TRAMPOV Digitally signed by SALIH REDZHEPOV TRAMPOV

Date: 2024.03.25 16:34:56 +02'00'

/Salih Trampov/ /Kiril Boshov/ /Аsen Minchev/

Prepared by: Signed on behalf of the BoD:

KIRIL IVANOV BOSHOV Digitally signed by KIRIL IVANOV BOSHOV Date: 2024.03.25 16:49:58 +02'00'

ASEN MINCHEV MINCHEV Digitally signed by ASEN MINCHEV MINCHEV Date: 2024.03.25 16:50:22 +02'00'

Interim condensed separate statement of financial position as of 31 December 2023

		31.12.2023	31.12.2022
	Notes	BGN '000	BGN '000
ASSETS
Non-current assets
Investments in subsidiaries	13	608 922	651 950
Property, plant and equipment	14.1	1 048	1 204
Intangible assets	14.2	-	1
		609 970	653 155
Current assets
Related parties' receivables	15	20 205	23 759
Other receivables	16	1 532	16 460
Cash and cash equivalents	17	104	2 238
		21 841	42 457
TOTAL ASSETS		631 811	695 612

This interim condensed separate financial statement has been approved by the Management Board of Eurohold Bulgaria AD on 25 January 2024.

SALIH REDZHEPOV TRAMPOV Digitally signed by SALIH REDZHEPOV TRAMPOV Date: 2024.03.25 16:35:24 +02'00'

Prepared by: Signed on behalf of the BoD:

/Salih Trampov/ /Kiril Boshov/ /Аsen Minchev/ KIRIL IVANOV BOSHOV Digitally signed by KIRIL IVANOV BOSHOV Date: 2024.03.25 16:50:51 +02'00'

ASEN MINCHEV MINCHEV Digitally signed by ASEN MINCHEV MINCHEV Date: 2024.03.25 16:51:07 +02'00'

Interim condensed separate statement of financial position as of 31 December 2023 (continued)

		31.12.2023	31.12.2022
	Notes	BGN '000	BGN '000
EQUITY AND LIABILITIES
Equity
Share capital	18.1	260 500	260 500
Share premium	18.2	144 030	144 030
General reserves	18.2	7 641	7 641
(Retained loss) / Retained earnings		(169 569)	(67 422)
Loss for the year		(23 755)	(102 147)
Total equity		218 847	242 602
Subordinated debts	19	386	8 580
Non-current liabilities
Bond liabilities	21	241 755	234 111
Loans and borrowings	20	21 271	16 555
Related parties' liabilities	22	-	13 797
Other non-current liabilities	23	950	1 141
		263 976	265 604
Current liabilities
Loans and borrowings	22	34 794	165 124
Bond liabilities	21	1 569	1 571
Related parties' liabilities	25	39 691	9 275
Trade payables	24	11 195	1 374
Other current liabilities	26	61 353	1 482
		148 602	178 826
Total liabilities and subordinated debts		412 964	453 010
TOTAL EQUITY AND LIABILITIES		631 811	695 612

This interim condensed separate financial statement has been approved by the Management Board of Eurohold Bulgaria AD on 25 January 2024.

Prepared by: Signed on behalf of the BoD:

SALIH REDZHEPOV TRAMPOV Digitally signed by SALIH REDZHEPOV TRAMPOV Date: 2024.03.25 16:35:44 +02'00'

/Salih Trampov/ /Kiril Boshov/ /Аsen Minchev/ KIRIL IVANOV BOSHOV Digitally signed by KIRIL IVANOV BOSHOV Date: 2024.03.25 16:51:30 +02'00'

ASEN MINCHEV MINCHEV Digitally signed by ASEN MINCHEV MINCHEV Date: 2024.03.25 16:51:47 +02'00'

		31.12.2023	31.12.2022
	Notes	BGN '000	BGN '000
CASH FLOWS FROM OPERATING ACTIVITIES
Loss before tax		(23 755)	(102 147)
Adjusted for:
Depreciation		207	295
Interest income	5	(705)	(359)
Interest expenses	7	23 387	21 710
Dividend income		(1 306)	(2 102)
Losses from sale of investments, net		(687)	14 160
(Gains) from revaluation of investments, net		(62)	53 666
Foreign exchange differences		5	14
(Expenses for)/reintegration of impairment of financial
assets, net		(1 958)	2 310
Adjustments in working capital:
Increase/Decrease in trade and other receivables		15 660	1 237
incl. Proceeds of assignment		15 300	-
Increase in trade and other liabilities, other adjustments		13 204	6 309
Net cash flows from operating activities		23 990	(4 907)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investments		-	(25 950)
Share premium distribution	13.1.2	43 028	-
Proceeds from sale of investments		-	7 296
Loans granted		-	(8 877)
Proceeds/(repayments) from loans		(76)	757
Interest received from loans granted		-	2 474
Dividend received		1 306	2 102
Net cash used by investing activities		44 258	(22 198)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from loans		44 808	283 294
Repayments of loans		(96 226)	(232 184)
Interest and commissions paid		(18 594)	(21 275)
Lease payments		(193)	(321)
Other payments from financing activities		(177)	(278)
Net cash generated/(used) by financing activities		(70 382)	29 236
Net increase/(decrease) in cash and cash equivalents		(2 134)	2 131
Effect of expected credit losses		-	(8)
Cash and cash equivalents at the beginning of the year		2 238	115
	17
Cash and cash equivalents at the end of the year	17	104	2 238

This interim condensed separate financial statement has been approved by the Management Board of Eurohold Bulgaria AD on 25 January 2024.

Prepared by: Signed on behalf of the BoD:

TRAMPOV

SALIH

REDZHEPOV Digitally signed by SALIH REDZHEPOV TRAMPOV Date: 2024.03.25 16:36:11 +02'00'

KIRIL IVANOV BOSHOV Digitally signed by KIRIL IVANOV BOSHOV Date: 2024.03.25 16:52:09 +02'00'

/Salih Trampov/ /Kiril Boshov/ /Аsen Minchev/ ASEN MINCHEV MINCHEV Digitally signed by ASEN MINCHEV MINCHEV Date: 2024.03.25 16:52:29 +02'00'

The notes from page 12 to page 45 are an integral part of the interim condensed separate financial statements for 2023.

Interim condensed separate statement of changes in equity as of 31 December 2023

	Share capital	Share premium	General reserves	Retained earnings	Total Equity
	BGN '000	BGN '000	BGN '000	BGN '000	BGN '000
Balance as of 1 January 2022	260 500	7 641	144 030	(67 422)	344 749
Loss for the period	-	-	-	(102 147)	(102 147)
Total comprehensive loss for the period	-	-	-	(102 147)	(102 147)
Balance as of 30 September 2022	260 500	7 641	144 030	(169 569)	242 602
Balance as of 1 January 2023	260 500	144 030	7 641	(169 569)	242 602
Loss for the period	-	-	-	(23 755)	(23 755)
Total comprehensive loss for the period	-	-	-	(23 755)	(23 755)
Balance as of 30 September 2023	260 500	144 030	7 641	(193 324)	218 847

This interim condensed separate financial statement has been approved by the Management Board of Eurohold Bulgaria AD on 25 January 2024.

Prepared by: Signed on behalf of the BoD:

SALIH REDZHEPOV TRAMPOV Digitally signed by SALIH

REDZHEPOV TRAMPOV Date: 2024.03.25 16:36:31 +02'00'

KIRIL IVANOV BOSHOV Digitally signed by KIRIL IVANOV BOSHOV Date: 2024.03.25 16:52:53 +02'00'

/Salih Trampov/ /Kiril Boshov/ /Аsen Minchev/ ASEN MINCHEV MINCHEV Digitally signed by ASEN MINCHEV MINCHEV Date: 2024.03.25 16:53:12 +02'00'

Notes to the interim condensed separate financial statements for 2023

1. Information about the company

Eurohold Bulgaria AD (the Company) is a public joint stock company established pursuant to the provisions of article 122 of the Law for Public Offering of Securities and article 261 of the Commerce Act.

Founded in 1996, Eurohold Bulgaria AD operates in Bulgaria, Northern Macedonia, Ukraine, Georgia, Greece, Romania and the Netherlands through a large number of subsidiaries in the sectors of insurance, financial services, energy, car sales (until 30.06.2022) and car leasing (until 30.06.2022).

The company is registered in the Sofia City Court under corporate file 14436/2006 and is formed through the merger of Eurohold AD registered under corporate file № 13770/1996 as per the registry of Sofia City Court, and Starcom Holding AD, registered under corporate file № 6333/1995 as per the registry of Sofia City Court.

Eurohold Bulgaria has its seat and registered address in the city of Sofia, P.B. 1592, Iskar Region, 43 Hristofor Kolumb Blvd., UIC 175187337.

The governing bodies of the company are the General Meeting of Shareholders, the Supervisory Board and the Management Board /two-tier system/ comprising the following members as at 31.12.2023:

Supervisory board:

Asen Milkov Christov, Bulgaria – Chairman; Dimitar Stoyanov Dimitrov, Bulgaria – Deputy Chairman; Radi Georgiev Georgiev, Bulgaria – Member; Kustaa Lauri Ayma, Finland – Independent Member; Ivaylo Krasimirov Angarski, Country: Bulgaria - Independent member; Louis Gabriel Roman, USA – Independent Member.

Management board:

Kiril Ivanov Boshov, Bulgaria - Chairman, Executive Member; Asen Mintchev Mintchev, Bulgaria – Executive Member; Velislav Milkov Hristov, Bulgaria – Member; Razvan Stefan Lefter, Romania – Member.

As of 31.12.2023 the Company is represented and managed by Kiril Ivanov Boshov and Asen Minchev Minchev, Executive Directors, and Milena Milchova Guentcheva - Procurator, only jointly by the two executive directors or by one executive director and procurator.

The Audit Committee supports the work of the Management Board, monitors and supervises the Company's internal control system, risk management and financial reporting system.

As of 31.12.2023, the Audit Committee of the Company comprises the following members: Ivan Georgiev Mankov, Bulgaria– Chairman; Dimitar Stoyanov Dimitrov, Bulgaria – Member; Rositsa Mihaylova Pencheva, Bulgaria – Member.

The number of employees in the Company as of 31.12.2023 is 28 (31.12.2022: 24 employees).

1.1. Scope of Activities

The scope of activities of Eurohold Bulgaria AD is acquisition, management, assessment and sales of participations in Bulgarian and foreign companies, acquisition, management and sales of bonds, acquisition, assessment and sales of patents, granting patent use licenses to companies in which the company participates, funding companies, in which the Company participates.

1.2. Types of Activities

Eurohold Bulgaria AD, as a holding company with a primary activity of acquiring and managing subsidiary companies, primarily engages in financial activities. Eurohold Bulgaria AD, as a holding company, does not conduct regular trading activities and does not provide financial services.

The companies in the portfolio of Eurohold Bulgaria operate in the following markets: insurance, energy, automotive, leasing and finance. Investments in the automotive and leasing segment were sold on 30.06.2022.

Insurance and Health Insurance line:

• o Insurance services
• o Health insurance services
• o Life insurance services

Energy line:

• o Public supply of electricity according to the Energy Act
• o Access and transmission of electricity through the electricity distribution network and connection of new consumers to the electricity distribution network
• o Management, maintenance, repair and development of the electricity distribution network, as well as auxiliary facilities and networks and transport of electricity through the network
• o Trade in electricity, heat, gaseous fuels and all kinds of other energy sources
• o Production, construction and operation of energy systems and sites / parks related to renewable energy sources
• o Research, consulting, design, financing and construction of energy sites, supply of energy efficient services, implementation of services under contracts with guaranteed results
• o Trade in integrated systems in the field of information and communication technologies, provision of information and technological services, as well as other technical and consulting services .

Financial line:

o Investment intermediation

Automobile line (until 30.06.2022):

• o Sales of new cars
• o Car repairs

Leasing line (until 30.06.2022):

• o Leasing services
• o Car rentals

2. Basis for Preparation of the Separate Financial Statements

The interim condensed separate financial statements of Eurohold Bulgaria AD have been prepared in accordance with IAS 34 Interim Financial Reporting, developed and published by the International Accounting Standards Board and adopted by the European Union. It does not contain all the information required to prepare an annual financial statement in accordance with International Financial Reporting Standards (IFRS) and should be read in conjunction with the company's annual financial statements as of 31 December 2022.

This interim condensed financial statement is individual, where investments in subsidiaries are presented at cost.

The Company also prepares consolidated financial statements in accordance with International Financial Reporting Standards (IFRS), developed and published by the International Accounting Standards Board (IAS) and adopted by the European Union (EU), in which investments in subsidiaries are reported and disclosed in in accordance with IFRS 10 "Consolidated Financial Statements".

The interim condensed separate financial statements are prepared in Bulgarian levs, which is the functional and reporting currency of the Company. All amounts are presented in thousands of BGN (thousands of BGN) (including comparative information for 2022), unless otherwise stated. As of 1 January 1999, the Bulgarian lev has a fixed exchange rate against the euro: BGN 1.95583 per 1 euro.

These interim condensed separate financial statements have been prepared on a historical cost basis, modified in certain cases by revaluation of certain assets and / or liabilities at their fair value at the date of preparation of the interim separate financial statements, as set out in the relevant notes.

The interim condensed separate financial statements have been prepared in accordance with the going concern principle.

As at the date of preparation of these interim condensed separate financial statements, the management has assessed the ability of the Company to continue its activities as an operating enterprise based on the available information and the foreseeable future. Following the review of the Company's activities, the management expects that the Company will have sufficient financial resources to continue its operational activities in the near future and continues to apply the going concern principle in preparing the interim condensed separate financial statements.

Management believes that the Company is operational and will remain so for the foreseeable future. It has no intention or need to eliminate or make changes beyond its normal course of business.

Eurohold Bulgaria AD, as a holding company, does not conduct regular trading activities.

2.1. Accounting policy

The Company has not made any changes in its accounting policy in connection with the application of new and / or revised IFRS that are effective for the current reporting period, starting on 1 January 2023, because during the period there were no objects or operations that are affected by the changes and amendments to IFRS.

2.1.1. New standards, interpretations and amendments effective 1 January 2023, which are approved for implementation by the EU

The Company applies the following new standards, amendments and interpretations, which came into force this period and are as follows:

• o IFRS 17 "Insurance Contracts" and its amendments effective from 1 January 2023, adopted by the EU - no impact on the Company's financial statements;
• o Amendments to IFRS 17 Insurance contracts: Initial Application of IFRS 17 and IFRS 9 – Comparative Information effective from 1 January 2023 adopted by the EU - no impact on the Company's financial statements.

2.1.2. Documents issued by IASB / IFRIC, which are not endorsed in the EU

At the date of authorisation of these interim condensed separate financial statements, certain new standards, amendments and interpretations to existing standards have been issued, but are not effective or adopted by the EU for the financial year beginning on 1 January 2023 and have not been applied early by the Company. They are not expected to have a material impact on the Company's financial statements. Management anticipates that all relevant pronouncements will be adopted in the Company's accounting policies for the first period beginning after the effective date of the pronouncement. A list of the changes in the standards is provided below:

• o Amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2: Disclosure of Accounting policies effective from 1 January 2023, adopted by the EU;
• o Amendments to IAS 8 Accounting policies, Changes in Accounting Estimates and Errors: Definition of Accounting Estimates effective from 1 January 2023, adopted by the EU;
• o Amendments to IAS 12 Income Taxes: Deferred Tax related to Assets and Liabilities arising from a Single Transaction effective from 1 January 2023 adopted by the EU;

• o Amendments to IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Non-current effective from not earlier than 1 January 2024 not yet adopted by the EU;
• o Amendments to IFRS 16 Leases: Lease Liability in a Sale and Leaseback effective not earlier than 1 January 2024 not yet adopted by the EU;
• o IFRS 14 Regulatory deferral accounts, effective from 1 January 2016, not adopted by the EU;
• o Amendments to IAS 7 and IFRS 7 Supplier Finance Arrangements: Disclosures effective from 1 January 2024 not yet adopted by the EU;
• o IFRS S1 General requirements for disclosure of sustainability-related financial information, effective from on or after 1 January 2024, not yet adopted by the EU;
• o IFRS S2, Climate-related disclosures, effective from on or after 1 January 2024, not yet adopted by the EU.

2.1.3. Changes to the approximate estimates

In the course of preparation of the interim condensed separate financial statement the management makes a number of assumptions, estimates and presumptions regarding the recognition and measurement of assets, liabilities, income and expenses.

Actual results may differ from the management's assumptions, estimates and presumptions and, in rare cases, entirely correspond to the previously assessed results.

In the preparation of the current interim condensed separate financial statement presented, the significant judgments of the management in the application of the Company's accounting policies and the main sources of uncertainty of the accounting estimates do not differ from those disclosed in the annual financial statements of the Company as at 31 December 2022.

For the purposes of presenting these interim condensed separate financial statements, reviews for impairment of trade and other receivables have been conducted.

2.1.4. Risk management

The Company is exposed to various types of risks with respect to its financial instruments. The most significant financial risk to which the Company is exposed are market risk, credit risk and liquidity risk.

The interim condensed individual financials statement does not include all the information regarding risk management and disclosures required in the preparation of annual financial statements and should be read in conjunction with the Company's annual individual financial statements as of 31 December 2022. There have been no changes to the risk management policy regarding financial instruments during the period.

2.1.5. Other risks – macroeconomic risks

The economic consequences of the military conflict in Ukraine and the unprecedented increase in the price of energy resources in 2022 have had serious price effects on the overall global economy, a substantial rise in inflation and a difficulty in the supply of energy resources. Other manifested effects of the beginning of the hostilities are: a decline in economic growth, an uncertain international environment, problems with gas supplies and a significant increase in gas prices, a surge in prices for trading in electricity, fuels and other petroleum products, difficulties in the supply chain, due to restrictive and logistical problems, strong volatility in stock markets under the pressure of fluctuations in fuel and other basic resource markets, increased interest rates, a shaky banking system, etc.

The company has analyzed, on the basis of the currently available data, the potential effect on its financial position and, in particular, on the models used, according to IFRS 9.

This disclosure complies with the requirements of IFRS 7 and IFRS 9, as well as the recommendations of the European Securities and Markets Authority (ESMA).

Macroeconomic forecast

According to the latest Economic Bulletin of the ECB, no. 8/2022 - The global economy is slowing amid ongoing geopolitical uncertainty, particularly as a result of Russia's unjustified war against Ukraine, and a widespread tightening of financing conditions. As the economic fallout from the war in Ukraine continues to play out and fuel strong inflationary pressures, indicators of consumer and business confidence remain weak, with real disposable incomes falling and rising cost pressures constraining output. The negative economic consequences are expected to be partially mitigated by fiscal policy measures. In the medium term, as the energy market rebalances, uncertainty is expected to decrease and real incomes to improve. As a result, economic growth is expected to pick up, supported by strengthening external demand and the removal of remaining supply constraints, despite less favorable financing conditions. The labor market is expected to remain relatively resilient in the coming moderate recession. Overall, average annual real GDP growth is expected to slow significantly, from 3.4% in 2022 to 0.5% in 2023, before accelerating to 1.9% in 2024 and to 1.8% in 2025

In the Macroeconomic Forecast of the BNB from December 2022, the expectations for the growth of the real GDP in 2023 is to slow down significantly to 0.4%, which will be determined mostly by the transition from a positive to a negative contribution of the change in stocks in the economy. The growth of economic activity is expected to accelerate to 3.2% in 2024, which will be mainly due to the formation of a low positive contribution of net exports due to the recovery of growth in exports of goods. Annual inflation, measured by the Harmonized Index of Consumer Prices (HICP), is forecast to slow to 4.2% at the end of 2023, with inflation expected to average 7.0% for the year, with short-term pressure on production prices resulting from factors such as realized commodity price increases and supply and labor shortages will continue to weigh on consumer prices. The forecast for inflation at the end of 2024 is for it to slow down to 3.3%, following the downward dynamics of the prices of food and energy raw materials on the international markets.

Source: www.bnb.bg

Eurohold Bulgaria AD strives to monitor the probability of the manifestation of the macroeconomic risk and develops group measures to mitigate as much as possible the impact of the effects that the presence of this risk may have. However, the management cannot completely exclude and limit its influence on the business, financial position, profits and cash flows at the group level. There is also the possibility that the occurrence of this risk may exacerbate other risks or a combination of risks.

Effect on economic growth

The table below presents information on the expectations for economic growth of the Republic of Bulgaria, according to the data of the International Monetary Fund (October 2023: https://www.imf.org/en/Publications/WEO/Issues/2023/10/10/world-economic-outlook-october-2023).

	Historical data						Forecast
	2017	2018	2019	2020	2021	2022	2023	2024
Economic GDP growth	2.8%	2.7%	4.0%	(4.0)%	7.6 %	3.4%	1.7%	3.2%

The table below presents information on the economic growth expectations of the countries of the Eurozone (representing the main external market of the Republic of Bulgaria) according to the data of the International Monetary Fund:

	Historical data						Forecast
	2017	2018	2019	2020	2021	2022	2023	2024
Economic GDP growth	2.6%	1.9%	1.5%	(6.3)%	5.2%	3.3%	0.7%	1.2%

The Company's management has also analysed the expected economic development of the countries where it operates, as the historical and forecast data from the International Monetary Fund are presented in the table below:

Forecast	Historical data					Forecast
July 2023	2017	2018	2019	2020	2021	2022	2023	2024
Republic of North
Macedonia	1.1%	2.9%	3.9%	(4.7)%	3.9%	2.2%	2.5%	3.2%
Republic of Ukraine	2.4%	3.5%	3.2%	(3.8)%	3.4%	(29.1)%	2.0%	3.2%
Republic of Georgia	4.8%	4.8%	5.0%	(6.8)%	10.5%	10.1%	6.2%	4.8%
Hellenic Republic	1.1%	1.7%	1.9%	(9.0)%	8.4%	5.9%	2.5%	2.0%
Republic of Poland	5.1%	5.9%	4.6%	(2.0)%	6.9%	5.1%	0.6%	2.3%
Italian Republic	1.7%	0.9%	0.5%	(8.9)%	6.9%	3.7%	0.7%	0.7%
Kingdom of Spain	3.0%	2.3%	2.0%	(11.1)%	6.4%	5.7%	2.5%	1.7%
United Kingdom	2.4%	1.7%	1.6%	(11.0)%	7.6%	4.1%	(0.5)%	0.7%

As can be seen from the above data, the management takes into account the possible short-term risks on the general development of the economy of the main countries, as in some of the markets the expected reduction of the Gross Domestic Product would be significant, but also takes into account the general expectations for a rapid recovery in the period 2022-2023 with expectations for a return to average projected growth levels prior to the Covid-19 coronavirus pandemic.

Effect on credit ratings

As a result of the expected economic effects of the slowdown in general activity, some rating agencies have downgraded their outlook on long-term debt positions, both in terms of sovereign debt and corporate debt positions. The table below presents information on the credit rating awarded by Fitch to the Republic of Bulgaria and the Company.

	Rating	Outlook
Republic of Bulgaria (May 2023)	BBB+	Positive
Eurohold Bulgaria AD (June 2023)	B	Stable

The following is information on the change in the credit rating (including forecast) assigned by Fitch to the countries where the Group operates:

	Rating	Outlook	Date
Romania	BBB-	Stable	08.09.2023
North Macedonia	BB+	Stable	06.10.2023
Ukraine	CC	n/a	23.06.2023
Georgia	ΒΒ+	Positive	14.06.2023
Greece	BB+	Stable	09.06.2023
Poland	A-	Stable	23.06.2023
Italy	BBB	Stable	12.05.2023
Spain	A-	Stable	26.05.2023
United Kingdom	AA-	Negative	02.06.2023
Netherlands	ААА	Stable	18.08.2023

Management continues to monitor the development of the credit risk for the countries where the Company operates, as well as the main investments (subject to both markets and credit risk).

Analysis of the expected effect on the model of IFRS 9

The Company's management has analysed the expected effect on the overall model of IFRS 9, the results of which are presented in detail below. The focus of the analysis includes:

• o The assessment of the deterioration of the credit quality of the counterparties.
• o The assessment of the potential effect on the expected credit losses from the exposures to the counterparties.

The general conclusion of the Company's management is that, at the time of issuing this report, no significant deterioration in the credit quality of counterparties due to the war in Russia and Ukraine or the dynamic macroeconomic environment is expected in the short term. Management continues to closely monitor for long-term indications of deterioration.

With respect to the model (including the full and simplified model) for calculating expected credit losses, management believes that no change to the overall model is necessary. The management takes into account the possible short-term risks on the general development of the economy of the main countries in which the Company operates, and in some of the markets the expected reduction of the Gross Domestic Product would be significant, but also takes into account the general expectations for business normalization in 2023, as it is already happening in 2023 with the prices of energy resources.

As of 31 December 2023, there is sufficiently reliable macroeconomic statistics, as well as information on medium-term levels of probability of default. The management has recalculated/modified the model regarding Expected Credit Losses compared to those as of December 31, 2022.

Military conflict between Ukraine and Russia

There are force majeure circumstances that can affect business activities in all spheres worldwide. This was caused by the military actions taken by Russia and its invasion of the territory of Ukraine.

As a result of the war that started, a number of countries from around the world, including countries from the European Union, took drastic sanctions against Russia, and partially against Belarus, which supports it.

Eurohold Bulgaria owns, through its subsidiary Euroins Insurance Group AD, investments in insurance companies in Ukraine (Note 13).

The Company has obligations under bank loans to the International Economic Bank, Russia and the International Bank for Economic Cooperation, Russia (Note 20).

Management will continue to monitor the potential impact and will take all possible steps to mitigate the potential effects.

Climate - related matters

Climate change may affect the entity's assets and liabilities in the reporting period or in the future. Changes in legislation resulting from climate issues may be known (e.g. regulations or negotiated commitments to mitigate the effects of pollution) or only anticipated (e.g. potential changes in business models as well as consumer behaviour, commercial counterparties, creditors and investors). They affect the fair value of assets/liabilities regardless of whether the risks or opportunities associated with them are real or perceived.

Consistent with the previous year, as of 31 December 2023, the Company has not identified significant risks caused by climate change that could have a negative and material impact on the Company's financial statements. Management continually assesses the impact of climate-related issues.

Assumptions could change in the future in response to upcoming environmental regulations, new commitments made and changing consumer demand. These changes, if not foreseen, could have an impact on the future cash flows, financial results and financial condition of the Company.

2.1.6. Cash Flows

The interim condensed separate statement of cash flows shows the cash flows for the year in relation to operating, investment and financial activity during the year, the change in cash and cash equivalents for the year, cash and cash equivalents at the beginning and at the end of the year.

The operating cash flows are calculated as a result of the year adjusted with the non-cash operating positions, changes in net turnover capital and corporate tax.

Investment activity cash flows include payments about purchase and sale of fixed assets and cash flows related to the purchase and sale of entities and operations. Purchase and sale of other securities which are not a cash and cash equivalents are also included in the investment activity.

Financial activity cash flows include changes in the amount or composition of share capital and the related costs, the borrowings and the repayment of interest-bearing loans, purchase, and sale of own shares and payment of dividends.

Cash and cash equivalents include bank overdraft, liquidity cash and securities for term less than three months.

3. Dividend income

	31.12.2023	31.12.2022
	BGN'000	BGN'000
Euro-Finance AD	1 306	2 102
	1 306	2 102

4. Gains from the sale of investments in subsidiaries, transactions with financial instruments and subsequent valuations

31.12.2023	31.12.2022
BGN'000	BGN'000
-	97
1 131	337
63	768
1 194	1 202

In 2023

Gains from sale of investments and financial instruments in the amount of BGN 1 131 thousand are from transaction with purchased own European Commercial Papers (ECP) (Note 20).

Income from revaluation of debt instruments measured at fair value include:

• o BGN 62 thousand gains from the sale of purchased own bonds from the EMTN Program in EUR with ISIN XS1731768302 (Note 21).
• o BGN 1 thousand from revaluation of purchased own bonds with ISIN BG2100002224 (Note 21).

In 2022

Gains from the sale of investments in subsidiaries are related to the transfer of ownership of the shares of Auto Union AD to a third party (Note 13).

Gains from operations with investments and financial instruments include:

• o BGN 133 thousand gains from the sale of purchased own bonds from the EMTN Program in EUR with ISIN XS1731768302 (Note 21).
• o BGN 195 thousand gains from operations with purchased own European Commercial Papers (ECP) with ISIN: XS2430057443 (Note 20).
• o BGN 5 thousand gains from the sale of purchased own bonds with ISIN BG2100002224 (Note 21).
• o BGN 4 thousand gains from the sale of other financial instruments.

Revaluations income of debt instruments measured at fair value include:

• o BGN 591 thousand from the revaluation of purchased own bonds from the EMTN Program in EUR with ISIN XS1731768302 (Note 21).
• o BGN 110 thousand from revaluation of purchased own bonds with ISIN BG2100002224 (Note 21).
• o BGN 67 thousand from revaluation of other financial instruments.

5. Interest income

	31.12.2023 BGN'000	31.12.2022 BGN'000
Interest income - related party loans	705	356
Interest income	-	3
	705	359

5.1. Interest income on loans to related parties

	31.12.2023 BGN'000	31.12.2022 BGN'000
Euroins Insurance Group AD	705	328
Auto Union AD (related party until 30.06.2022)	-	20
Motobul EAD (related party until 30.06.2022)	-	6
Starcom Holding AD	-	1
Eurolease Group AD (related party until 30.06.2022)	-	1
	705	356

6. Other financial income

	31.12.2023	31.12.2022
	BGN'000	BGN'000
Foreign exchange gains	19	21
	19	21

7. Interest expense

	31.12.2023 BGN'000	31.12.2022 BGN'000
Interest expense – loans and borrowings	9 635	5 008
Interest expense – bonds EMTN program	6 806	11 249
Interest expense – corporate bonds	4 447	3 941
Interest expense – related parties' loans and leasing	2 410	1 508
Interest expense – third-party loans and leasing	89	4
incl. Leasing	6	2
	23 387	21 710

7.1. Interest expense on borrowings and related parties leasing

	31.12.2023 BGN'000	31.12.2022 BGN'000
Starcom Holding AD - on loans (Note 19, 22, 25)	2 193	890
IC Euroins AD - on loan agreement of financial instruments (Note 21)	70	282
Euroins Romania Asiguarare – Reasigurare S.A., Romania, (in insolvency) - on loan agreement of financial instruments (Note 22)	9	218
IC EIG-Re EAD - under an agreement for the transfer of receivables under a loan of financial instruments (loss of control as of 31.12.2023) (Note 21)	138	-
Money Lease EAD (previous name Eurolease Auto EAD, related party
until 30.06.2022)	-	56
incl. Leasing	-	2
Eurolease Group EAD (related party until 30.06.2022)	-	34
Euroins Insurance Group AD	-	14
Auto Union AD (related party until 30.06.2022)	-	10
Auto Union Service EOOD (related party until 30.06.2022)	-	4
	2 410	1 508

8. Losses on sale of investments in subsidiaries, transactions with financial instruments and subsequent valuations

	31.12.2023	31.12.2022
	BGN'000	BGN'000
Losses on transactions of subsidiries	-	13 469
Losses on transactions of investments and financial instruments, incl.	444	1 125
Losses on transactions of investments and financial instruments with Euro-Finance AD, a subsidiary	13	139
Losses on transactions of investments and financial instruments with IC Euroins AD, a subsidiary	184	-
Losses on transactions of investments and financial instruments with IC Euroins Life AD, a subsidiary	19	-
Losses on transactions of investments and financial instruments with IC EIG-Re AD, loss of control as of 31.12.2023	219	-
Losses from revaluation of financial investments	1	1 719
Losses from Impairment costs of investments in subsidiaries	-	52 715
	445	69 028

In 2023

Losses from operations with investments and financial instruments include:

• o BGN 431 thousand from transactions with purchased own European Commercial Papers (ECP) with ISIN: XS2565406654 (Note 20);
• o BGN 13 thousand for fees and commissions for services provided by an investment intermediary.

The expenses from the revaluation of financial instruments in the amount of BGN 1 thousand are related to the revaluation of redeemed own bonds from the EMTN Programme in EUR with ISIN BG2100002224 (Note 21).

In 2022

Losses from the sales of investments in subsidiaries include:

• o BGN 13 464 thousand losses from the sale of the shares of Eurolease Group AD to a third party (Note 13).
• o BGN 5 thousand losses from the sale of the shares of Daru Invest EAD to a third party (Note 13).

Losses from operations with investments and financial instruments include:

• o BGN 536 thousand loss from operations with purchased own bonds with ISIN BG2100002224 (Note 21).
• o BGN 405 thousand loss from operations with purchased own bonds from EMTN Program in EUR with ISIN XS1731768302 (Note 21).
• o BGN 139 thousand in fees and commissions for services of an investment intermediary intermediary Euro-Finance AD, subsidiary.
• o BGN 39 thousand loss from operations with purchased own European Commercial Papers (ECP) with ISIN: XS2430057443 (Note 20).
• o BGN 6 thousand loss from operations with other financial instruments.

Losses from revaluations of financial instruments include:

• o BGN 1 701 thousand from the revaluation of purchased own bonds from the EMTN Program in EUR with ISIN XS1731768302 (Note 21).
• o BGN 10 thousand from revaluation of repurchased own European Commercial Papers (ECP) with ISIN: XS2430057443 (Note 20).
• o BGN 4 thousand from the revaluation of purchased own bonds from the EMTN Program in EUR with ISIN BG2100002224 (Note 21).
• o BGN 4 thousand from revaluation of other financial instruments.

9. Other financial expenses

	31.12.2023	31.12.2022
	BGN'000	BGN'000
Bank fees related to loans	601	6 141
Loss from changes in exchange rates	24	35
Other finance expenses	21	21
including Other finance expenses with Euro-Finance AD, a subsidiary	1	-
	646	6 197

10. Hired services expenses

	Note	31.12.2023 BGN'000	31.12.2022 BGN'000
Hired services expenses		4 620	4 559
Hired services expenses – related parties	10.1	830	174
		5 450	4 733

10.1. Hired services expenses - related parties

	31.12.2023 BGN'000	31.12.2022 BGN'000
IC Euroins AD – insurance services	830	173
Auto Italia EAD (related party until 30.06.2022) – other services	-	1
	830	174

11. (Accrued) / Recovered impairment loss from impairment of financial assets, net

	31.12.2023 BGN'000	31.12.2022 BGN'000
Recoverable loss from impairment of financial assets	2 867	801
Accrued loss from impairment of financial assets	(909)	(3 111)
	1 958	(2 310)

12. Other revenue/(expenses), net

	31.12.2023	31.12.2022
	BGN'000	BGN'000
Other (expenses)	(466)	(770)
Other (expenses) – related parties	(4)	(6)
(Interest expenses) on right-of-use assets	(46)	(53)
Other revenue, incl.	2 536	134
Rent income (sublease of right-of-use assets)	-	8
Revenues from discounts (on right-of-use assets)	-	13
Other	2 536	113
Other revenue – related parties, incl.	194	117
Rent income (sublease of right-of-use assets)	-	60
	2 214	(578)

12.1. Other expenses – related parties

	4	6
Motobul EAD (related party until 30.06.2022)	-	3
IC Euroins AD	4	3
	BGN'000	BGN'000
	31.12.2023	31.12.2022

12.2. Other revenue – related parties

	31.12.2023	31.12.2022
	BGN'000	BGN'000
IC Euroins AD	9	11
Euroins Romania Asiguarare – Reasigurare S.A., Romania (In insolvency)	38	46
Eastern European Electric Company B.V.	72	-
Eastern European Electric Company II B.V.	75	-
Hanson Asset Management Ltd, UK - office rental	-	60
	194	117

13. Investments in subsidiaries

	Net value as of 01.01.2023	Increase	Decrease	Net value as af 31.12.2023	Share capital of the subsidiary	% interests in subsidiaries
	BGN'000	BGN'000	BGN'000	BGN'000	BGN'000	%
Euroins Insurance Group AD Eastern European Electric	471 100	-	-	471 100	576 243	90.10%
Company II B.V.	156 185	-	43 028	113 157	4	100.00%
Euro-Finance AD	24 645	-	-	24 645	14 100	99.99%
Electrohold Green EOOD	20	-	-	20	20	100.00%
	651 950	-	43 028	608 922

The subject of activity of the subsidiaries is as follows:

• o Euroins Insurance Group AD acquisition, management, evaluation and sale of participations in Bulgarian and foreign companies. The company is active in Bulgaria, Northern Macedonia, Ukraine and Georgia. Euroins Insurance AD, part of Euroins Insurance Group AD, operates on the principle of Freedom of Services in the following Member States of the European Union: Republic of Poland; Republic of Italy; Kingdom of Spain; Germany; Kingdom of the Netherlands. Business area insurance market.
• o Eastern European Electric Company II BV, the Netherlands acquisition and management of energy market companies;
• o Euro-Finance AD Providing and performing investment services and activities in the country and abroad. Business direction - Investment intermediation and asset management - Bulgaria;
• o Electrohold Green EOOD consulting and investment activities, construction and maintenance of photovoltaic power plants, trade in solar panels and accessories, real estate transactions. As of 31.12.2023, the company has not conducted any operations.

13.1. In 2023

13.1.1. Euroins Insurance Group AD

On 10 February 2023, Eurohold Bulgaria informed the public about illegal actions of employees of the Romanian insurance supervision against the Romanian insurance company "Euroins Romania Asigurare-Reasigurare" S.A. (Euroins Romania) part of the group. Eurohold has informed the FSC and a number of competent state and international bodies and institutions about these actions. On the website of Eurohold Bulgaria AD, in the news section (www.eurohold.bg), the information published by the company can be followed, as well as the subsequent actions and measures taken.

On 17 February 2023, the management of Eurohold Bulgaria AD informed the public (news section of www.eurohold.bg) that despite its disagreement with the actions of insurance supervision officials in Romania against the local division of Euroins in order to protect the company from more further regulatory overpressure, Euroins Romania concluded a new reinsurance contract with the group's reinsurer - ZD EIG Re EAD (EIG Re) (loss of control as of 31.12.2023). This contract guarantees the payment of all claims of the Romanian insurer and ensures the transfer of a significant part (87%) of the risk in its portfolio outside the company, thereby retroceded to leading European reinsurers.

On 17 March 2023, the Romanian financial regulator (Autoritatea de Supraveghere Financiară) revokes the insurance activity license of Euroins Romania Insurance - Reinsurance S.A., a subsidiary of Euroins Insurance Group AD. The regulator's decision also includes the opening of insolvency proceedings and the appointment of the Insurance Guarantee Fund (Fondul de Garantare a Uzumedilor) as a temporary administrator of the company.

The management of Eurohold Bulgaria AD, a majority shareholder in Euroins Insurance Group AD, made a statement that, apart from Euroins Romania, all other subsidiaries and businesses of the Eurohold Group, including insurance, are operating and will continue to operate as usual and without any problems , serving their customers and duties and executing their business plans for the year.

On 21 March 2023, Eurohold requested the return of the license to Euroins Romania. At a press conference in Bucharest, the holding warned that the ASF's decision to revoke the license and request for insolvency leads to the termination of all reinsurance contracts of the Romanian company, as a result of which all damages and claims will have to be paid by the Guarantee Fund (this condition is basic and standard for each reinsurance contract).

Euroins Romania Insurance - Reinsurance S.A., Romania (Euroins Romania), was declared insolvent on June 9, 2023.

13.1.2. Eastern European Electric Company II B.V.

In September 2023, the management of Eurohold Bulgaria AD decided to repay the additional capital contributions from Eastern European Electric Company II B.V. in the amount of EUR 22 mln.

13.2. In the reporting year 2022

	Net value as of 01.01.2022	Increase	Decrease	Net value as af 31.12.2022	Share capital of the subsidiary	% interests in subsidiaries
	BGN'000	BGN'000	BGN'000	BGN'000	BGN'000	%
Euroins Insurance Group AD Eastern European Electric	523 815	-	(52 715)	471 100	576 243	90.10%
Company II B.V.	141 995	14 190	-	156 185	4	100.00%
Euro-Finance AD	24 645	-	-	24 645	14 100	99.99%
Electrohold Green EOOD	-	20	-	20	20	100.00%
Avto Union AD	2 003	-	(2 003)	-	40 004	-
Eurolease Group AD	24 635	-	(24 635)	-	27 241	-
Daru Invest EAD	-	11 740	(11 740)	-	11 740	-
	717 093	25 950	(91 093)	651 950

Euroins Insurance Group AD

In connection with the termination of the license of the Romanian subsidiary of Euroins Insurance Group AD on 17 March 2023 and based on the review of the report of the independent licensed appraisers (as of 31 December 2022, the recoverable amount determined by the appraisers is BGN 478 661 thousand), the management of Eurohold Bulgaria AD has reviewed the appraisers' report and has noted the possibility of hidden effects in relation to the revocation of the license of Euroins Romania Insurance - Reinsurance S.A. and the potential violations of the synergy in the EIG group, maintaining its conservative approach in the assessment of assets, considered that the investment in Romania should be depreciated to the value of the company's reputation in the amount of BGN 52 715 thousand. As a result, in 2022, a depreciation expense of investments in subsidiaries was reported in the amount of BGN 52 715 thousand, and the net value of the investment as of 31.12.2022 was in the amount of BGN 471 100 thousand.

At the end of 2022, Euroins Insurance Group AD sold its investments in Belarus (subsidiary) and Russia (associate).

Eastern European Electric Company II B.V.

In 2022, Eurohold Bulgaria AD increased the capital "Eastern European Electric Company II" B.V. according to the applicable provisions of the Dutch legislation - by means of cash contributions with a total amount of EUR 7 255 thousand without the issue of units, the contributions being transferred to a premium reserve.

Electrohold Green Ltd

On 23.05.2022, the Board of Directors of Eurohold Bulgaria AD decided to establish a subsidiary Electrohold Green EOOD with a capital of BGN 20 thousand, divided into 20 equal shares of BGN 1 000 each. As of 31.12.2022, the company has not engaged in activities.

Auto Union AD

With the Share Sale and Purchase Agreement dated 30.06.2022, the ownership of the 80 001 shares owned by Eurohold Bulgaria AD was transferred to a third party. The shares are available, registered, non-privileged and represented 99.99% of the capital of Auto Union AD. As a result of the transaction, Eurohold Bulgaria AD reports a profit from the sale of investments in subsidiaries in the amount of BGN 97 thousand.

Eurolease Group AD

With the Share Purchase Agreement dated 30.06.2022, the ownership of 510 861 shares owned by Eurohold Bulgaria AD was transferred to a third party. The shares are available, registered, non-privileged shares and represented 90.01% of the capital of Eurolease Group AD. As a result of the transaction, Eurohold Bulgaria AD reports a loss from the sale of investments in subsidiaries in the amount of BGN 13 465 thousand.

Daru Invest EAD

On 24.02.2022, the Board of directors of Eurohold Bulgaria AD decides to establish a company Daru Invest EAD with a capital of BGN 11 740 000 distributed in 11 740 000 available, registered, non-privileged voting shares, with nominal and issue value from BGN 1 each.

On 22.03.2022, a contract was concluded for the sale of shares of Daru Invest EAD, which finalized the sale of 100% of the capital of Daru Invest EAD.

Impairment of investments in subsidiaries

At the end of the reporting period, the Company's management analyzes and evaluates whether there are indications of impairment of its investments in subsidiaries. The main indicators of impairment are: a significant reduction in the volume or suspension of the activity of the subsidiary company; loss of markets, customers or technological problems, reporting negative net assets or assets below registered share capital, trends in the deterioration of fundamental financial indicators, as well as a decrease in market capitalization.

Calculations are made by management with the assistance of external independent licensed appraisers with appropriate qualifications and experience. As a basis for the cash flow forecasts before taxes, financial forecasts developed by the relevant subsidiaries covering a three to five year period, as well as other medium and long-term plans and intentions for their development, are used.

The key assumptions used in the calculations are determined specifically for each subsidiary and according to its specifics of activity, business environment and risks, the expected future economic benefits that will be received, as well as the positions on Bulgarian and foreign markets, etc.

As of the date of this interim condensed financial statement, the analysis is still not completed.

14. Fixed assets

14.1. Property, machinery and equipment, right-of-use

	Right-of-use
	assets – Properties BGN'000	Vehicles BGN'000	Equipment BGN'000	Total BGN'000
Cost:
As of 1 January 2022	3 137	244	82	3 463
Additions	-	43	-	43
Disposals	(1 378)	-	-	(1 378)
As of 31 December 2022	1 759	287	82	2 128
Additions	-	32	18	50
Disposals	-	-	(2)	(2)
As of 31 December 2023	1 759	319	98	2 176
Depreciation:
As of 1 January 2022	1 761	171	79	2 011
Accrued depreciation	249	40	2	291
Other changes	(1 378)	-	-	(1 378)
As of 31 December 2022	632	211	81	924
Accrued depreciation	176	27	3	206
Disposals	-	-	(2)	(2)
As of 31 December 2023	808	238	82	1 128
Net book value:
As of 1 January 2022	1 376	73	3	1 452
As of 31 December 2022	1 127	76	1	1 204
As of 31 December 2023	951	81	16	1 048

There are no pledged tangible fixed assets as collateral for existing liabilities as of 31 December 2023 and 31 December 2022.

14.2. Intangible assets

	Software
	BGN'000
Cost:
As of 1 January 2022	21
Additions	2
As of 31 December 2022	23
Additions	-
As of 31 December 2023	23
Depreciation:
As of 1 January 2022	18
Accrued depreciation	4
As of 31 December 2022	22
Accrued depreciation	1
As of 31 December 2023	23
Net book value:
As of 1 January 2022	3
As of 31 December 2022	1
As of 31 December 2023	-

15. Receivables from related parties – current part

		20 205	23 759
Other receivables	15.3	14 699	15 431
Interests on loans granted	15.2	1 016	318
Principals on loans granted	15.1	4 490	8 010
	Note	BGN'000	BGN'000
		31.12.2023	31.12.2022

15.1. Principals on loans granted

Impairment	(65) 4 490	- 8 010
Euroins Insurance Group AD	4 555	8 010
	BGN'000	BGN'000
	31.12.2023	31.12.2022

15.2. Interest on loans granted

	31.12.2023	31.12.2022
	BGN'000	BGN'000
Euroins Insurance Group AD	1 026	321
Impairment	(10)	(3)
	1 016	318

15.3. Other receivables

	31.12.2023	31.12.2022
	BGN'000	BGN'000
Euroins Insurance Group AD	13 168	13 300
Eastern European Electric Company B.V.	1 173	1 224
Eastern European Electric Company II B.V.	665	850
Euroins Romania Asiguarare – Reasigurare S.A., Romania (in insolvency)	509	193
IC Euroins AD	73	83
Eastern European Electric Company III B.V.	-	3
Euroins Insurance AD, North Macedonia	-	1
Electrodistribution Grid West AD	3	-
Electrohold Bulgaria EAD	2	-
Electrohold Trade EAD	-	1
Electrohold EPC EOOD	1	-
Electrohold ICT EAD	16	-
Euro-Finance AD	-	1
	15 610	15 656
Impairment	(911)	(225)
	14 699	15 431

The receivable from Euroins Insurance Group AD with a book value of BGN 13 168 thousand as of 31.12.2023 2023 (as of 31.12.2022: BGN 13 300 thousand) includes BGN 13 026 thousand (as of 31.12.2022: BGN 13 271 thousand) receivable under a debt replacement agreement, according to which Eurohold Bulgaria AD received a receivable from Euroins Insurance Group AD against transfer of ownership of 7 375 pcs. repurchased own bonds with ISIN BG2100002224, with a nominal value of EUR 1000 each (Note 21 and 27).

Parameters under the contracts for granted loans/cessions to related parties:

			Contract	Principal due	Principal due
Creditor	Obliged party	Currency	limit	31.12.2023	31.12.2022	Interest rate	Maturity date
Borrowing under a loan agreement with related parties:
Eurohold Bulgaria AD	Euroins Insurance Group AD	BGN	8 010 000	4 555 124	8 010 000	8.00%	08.11.2024
Receipt under a cession agreement with related parties:
Eurohold Bulgaria AD	Euroins Insurance Group AD	BGN	14 425 523	13 151 506	13 271 064	2.50%	01.01.2025
Total claims on loans/cessions from related parties:			21 281 064	21 281 064		17 706 630

16. Other receivables

	31.12.2023	31.12.2022
	BGN'000	BGN'000
Receivable under a debt assumption agreement	-	18 000
Tax receivables - VAT	-	217
Debt securities at fair value through profit and loss	7	7
Receivables from customers	965	43
Prepaid expenses, incl:	562	903
Prepaid expenses to related parties – IC Euroins AD	449	781
Other receivables	5	5
	1 539	19 175
Impairment	(7)	(2 715)
	1 532	16 460

The receivable under a debt assumption agreement with a carrying value as of 31.12.2022, of BGN 18 000 thousand, has arisen as a result of settling financial transactions with the cedent by transferring ownership of 10 681 repurchased own bonds with ISIN BG2100002224, each with a nominal value of 1 000 EUR (Note 21 and 27).

Parameters under a third-party debt substitution contract:

			Contract	Principal due	Principal due
Creditor	Obliged party	Currency	limit	31.12.2023	31.12.2022	Maturity date
Eurohold Bulgaria AD	An unrelated third party	BGN	21 000 000	-	18 000 000	03.04.2024

17. Cash and cash equivalents

	31.12.2023	31.12.2022
	BGN'000	BGN'000
Cash at banks	85	126
Cash in hand	19	22
Blocked funds in a special purpose account in connection with a contract with a credit institution	-	2 098
	104	2 246
Impairment	-	(8)
	104	2 238

18. Share capital and reserves

18.1. Share capital

The registered share capital of the Company consists of 260 500 000 ordinary shares with a nominal value of BGN 1 per share. All shares have the right to receive a dividend and a liquidation share and represent one vote at the general meeting of the Company's shareholders.

-	-
260 500 000	260 500 000
Number of shares	Number of shares
31.12.2023	31.12.2022

As of 31.12.2023 the share capital is distributed as follows:

Shareholders	% Participation in the share capital	Number of shares /Voting rights/	Par value BGN
Starcom Holding AD	50.08%	130 454 157	130 454 157
KJK Fund II Sicav-Sif Balkan Discovery	10.79%	28 116 873	28 116 873
Boston Management and Research, through the following funds managed by him: Global Opportunities Portfolio, Global Macro Portfolio, Global Macro Absolute Return Advantage Portfolio, Global Macro Capital Opportunities Portfolio.	8.63%	22 482 578	22 482 578
SLS Holding AD	8.68%	22 606 273	22 606 273
PENSION ASSURANCE COMPANY-FUTURE through the following funds managed by him: UPF-Future PPF-Future DPF-Future	5.06%	13 179 398	13 179 398
Other legal entities	15.06%	39 223 015	39 223 015
Other individuals	1.70%	4 437 706	4 437 706
Total	100.00%	260 500 000	260 500 000

18.2. Reserves

	151 671	151 671
General reserves	7 641	7 641
Share premium	144 030	144 030
	BGN'000	BGN'000
	31.12.2023	31.12.2022

19. Subordinated debts

	386	8 580
Subordinated debt instruments, not issued, tier 1 capital	386	8 580
	BGN'000	BGN'000
	31.12.2023	31.12.2022

The subordinated debt has no fixed maturity and the lender - Starcom Holding AD cannot demand its repayment, regardless of whether there is a case of default under the agreement. Eurohold Bulgaria AD has the right (but is not obligated) to pay amounts from the principal of the loan corresponding to each consecutively received tranche after the expiration of 5 years from the date of receipt of the corresponding tranche. Premature demandability of the principal amount of the subordinated debt is not allowed, except in cases of liquidation or insolvency, after payment of the amounts due to all privileged creditors, as well as to all other unsecured creditors.

The interest payable under the contract dated 12.08.2021 is in the amount of 5% on an annual basis on the borrowed sums of money for the period of their actual use. The interest due under the contract from 29.11.2022 is in the amount of 6% + 3M EURIBOR on an annual basis on the borrowed sums of money for the period of their actual use.

20. Loans and borrowings

Non-current loans and borrowings

	21 271	16 555
International Investment Bank	11 437	16 555
	9 834	-
	BGN'000	BGN'000
	31.12.2023	31.12.2022

Current loans and borrowings

	31.12.2023	31.12.2022
	BGN'000	BGN'000
JP Morgan SE	20 834	78 632
European Commercial Papers (ECP)	-	57 385
International Bank for Economic Co-operation	-	23 728
International Investment Bank	9 632	5 379
Other	4 328	-
	34 794	165 124

Raised funds from financial institutions

				Principal as of	Principal as of		Maturity
Bank	Type	Currency	Contract limit	31.12.2023	31.12.2022	Interest rate	date	Security
International Investment Bank	Loan - Principal	EUR	10 000 000 €	3 850 000 €	4 620 000 €	6.0% + 3m EURIBOR	03.2025	Pledge on subsidiary shares
International Investment Bank	Loan - Principal	EUR	7 000 000 €	6 192 308 €	6 461 538 €	5.0% + 3m EURIBOR	01.2029	Pledge on subsidiary shares. Insurance.
International Bank for Economic Co operation	Loan - Principal	EUR	20 000 000 €	-	12 000 000 €	6.5%	07.2023	Pledge on subsidiary shares
JP Morgan SE	Loan - Principal	EUR	40 000 000 €	15 084 534 €	40 000 000 €	8.75% + 6m EURIBOR	06.2025	Pledge on subsidiary shares. Insurance.

As of 31.12.2023

o Other current loans and borrowings to financial and non-financial institutions represent a liability (principal + interest) under a loan agreement for financial instruments with an annual interest rate of 7.0% and maturity on 05.06.2024 (Note 21).

In 2023

• o The company has performed a transaction on the repurchase of the European Commercial Papers (ECP) from an issue with ISIN XS2491929290 with a nominal value of EUR 2 500 thousand. The issue was mark down due to maturity (Note 27).
• o The company has performed transactions on the repurchase of the European Commercial Papers (ECP) from an issue with ISIN XS2565406654 with a nominal value of EUR 27 500 thousand. The issue was withdrawn due to maturity (Note 27). As a result, losses from operations with investments and financial instruments in the amount of BGN 448 thousand (Note 8) and profits from operations with investments and financial instruments in the amount of BGN 236 thousand (Note 4) were reported.

As of 31.12.2022

European Commercial Papers (ECP) consists of:

• o ISIN XS2565406654, with a maturity 12.2023, an annual interest rate 2.5% and a par value of EUR 27 500 thousand.
• o ISIN XS2491929290, with a maturity 06.2023, an annual interest rate 1.5% and a par value of EUR 2 500 thousand.

In 2022

• o The company has issued and repurchased one European Commercial Papers (ECP) issue, with a total par value of EUR 2 500 thousand.
• o The company performed transactions on the sale of the European Commercial Papers (ECP) from an issue with ISIN XS2430057443 worth EUR 29 160 thousand, as a result of which losses from operations with investments and financial instruments in the amount of BGN 39 thousand (Note 8) and profits from operations with investments and financial instruments in the amount of BGN 7 thousand (Note 4) were reported.
• o The company performed a transaction on the repurchase of the European Commercial Papers (ECP) from an issue with ISIN XS2430057443 in the amount of EUR 1 660 thousand.
• o The company carried out transactions on the exchange of a European Commercial Papers (ECP) issue bought back before maturity with ISIN XS2430057443 with a newly issued one with ISIN XS2565406654, both with a nominal value of EUR 27 500 thousand. As a result of the exchange transactions, the Company reported profits from operations with investments and financial instruments in the amount of BGN 186 thousand (Note 4 and Note 27).

21. Bond liabilities

Non - current bond liabilities

	241 755	234 111
Corporate bond with ISIN: BG2100002224 - principal	78 205	78 205
Corporate bond with ISIN: BG2100013205 – principal	58 675	58 675
EMTN Programme in EUR with ISIN: XS1542984288 – principal	19 558	19 558
EMTN Programme in EUR with ISIN: XS1731768302 - principal	85 317	77 673
	31.12.2023 BGN'000	31.12.2022 BGN'000

Current bond liabilities

	31.12.2023	31.12.2022
	BGN'000	BGN'000
EMTN Programme in EUR with ISIN: XS1731768302 - interest	585	585
EMTN Programme in PLN/EUR with ISIN: XS1542984288 - interest	9	9
Corporate bond with ISIN: BG2100013205 - interest	182	183
Corporate bond with ISIN: BG2100002224 - interest	793	794
	1 569	1 571

Bond liabilities are presented at amortized cost, net of the repurchased own bonds, which are subsequently measured at fair value based on information from Bloomberg / Eurobank and other sources, reflecting the effect on profit or loss for the period.

Information on the terms of the EMTN programs is publicly available on the Irish Stock Exchange website, Bonds section.

The EMTN program with ISIN XS1731768302 is an extended EMTN program with a maturity date of 07.06.2026, a fixed interest rate of 6.5% (six and a half percent) per annum and an interest payment frequency of once a year in arrears. At the end of 2022, the Company received consent to extend by 42 months the final repayment period of European medium-term notes issued under the European Medium-Term Notes Program (EMTN Programme) and admitted to trading on the Irish Stock Exchange. As of 31.12.2023, the company owns repurchased own securities with a nominal value of EUR 27 000 thousand.

The EMTN program with ISIN: XS1542984288 matures on 29.12.2026, has a fixed interest rate of 8.0% (eight percent) on an annual basis and a frequency of interest payments once a year in arrears. As of 31.12.2021 the EMTN program issue with ISIN: XS1542984288 is a restructured EMTN program with extended maturity date until 29.12.2026, changed currency from PLN to EUR and changed frequency of interest payments from six-month to once a year. As a result of the restructuring in 2021, losses from operations with investments in the amount of BGN 440 thousand were reported (Note 8).

Bond loan with ISIN: BG2100013205 in the amount of EUR 30 000 000 was registered by Central Depository AD on 26 November 2020. The issue is the second in a row of ordinary, registered, dematerialized, interestbearing, secured, non-convertible, freely transferable bonds under the terms of primary private (non-public) placement within the meaning of Art. 205, para. 2 of the CA. The nominal and issue value of each bond is EUR 1 000 (thousand). The maturity date of the issue is 26 November 2027, and the principal is repaid once at maturity date. Interest payments are made every six months, as of the date of registration of the issue (26 November 2020), at a fixed nominal interest rate - 3.25% on an annual basis.

Bond loan with ISIN: BG2100002224 in the amount of EUR 40 000 000 was registered by Central Depository AD on 08 March 2022. The issue is a third corporate, ordinary, registered, dematerialized, interest-bearing, secured, non-convertible, unprivileged and freely transferable bonds under the conditions of initial private (non-public) offering to less than 150 participants - a predetermined circle of investors according to a decision of the Management Board of the public company dated 23 February 2022 - TBI Bank EAD. The nominal and issue value of each bond is EUR 1 000 (thousand). The maturity date of the issue is 8 March 2029, and the principal is repaid once at maturity. The interest payments are every six months, as of the date of registration of the issue (8 March 2022), at a fixed nominal interest rate - 3.25% on an annual basis.

In 2023 the following bond transactions were concluded:

• o 4 000 pcs. repurchased own notes with ISIN XS1731768302 were sold.
• o Pursuant to an Agreement, a subsidiary of Eurohold Bulgaria AD replace another subsidiary of Eurohold Bulgaria AD in its capacity as a lender under a loan agreement for financial instruments with 2 126 pcs. due from Eurohold Bulgaria AD notes from the EMTN Program in EUR with ISIN XS1731768302 with a total nominal value of EUR 2 126 thousand and unpaid interest in the amount of BGN 91 thousand (Note 7.1.).

In 2022 the following bond transactions were concluded:

• o Under the financial instruments loan agreement were acquired 2 126 pcs. securities under the EMTN Programme in EUR with ISIN XS1731768302, as a result of which the company has reported interest expenses in the amount of BGN 282 thousand (Note 7.1 and 25.1).
• o Under the financial instruments loan agreement were acquired 1 650 pcs. securities under the EMTN Programme in EUR with ISIN XS1731768302, as a result of which the company has reported interest expenses in the amount of BGN 218 thousand (Note 7.1 and 25.1).
• o A total of 1 306 pcs. repurchased own securities under the EMTN Programme in EUR with ISIN XS1731768302 have sold and as a result of which a profit from operations with investments and financial instruments in the amount of BGN 63 thousand was reported (Note 4).
• o Pursuant to contracts for the purchase and sale of financial instruments have transferred the ownership of 1 306 pcs. (acquired) repurchased own securities under the EMTN Programme in EUR with ISIN XS1731768302. As of 31 December 2022, the financial transactions under these contracts have been fully settled.
• o Pursuant to three contracts for repo transactions with financial instruments have respectively sold with an arrangement for repurchase 3 766 pcs., 2 400 pcs. and 1 376 pcs. own securities under the EMTN Programme in EUR with ISIN XS1731768302. As a result of the transactions, losses from operations with investments and financial instruments in the amount of BGN 405 thousand were reported (Note 8). As of 31 December 2022, the financial transactions under these contracts have been fully settled.
• o Pursuant to the contract for the purchase and sale of financial instruments, the ownership of 3 776 units (acquired) repurchased own securities under the EMTN Programme with ISIN XS1731768302 was transferred. As of 31.12.2022, the financial transactions under this contract have been fully settled.
• o 35 000 pcs. own bonds with ISIN BG2100002224 have bought back and a loss from operations with investments and financial instruments in the amount of BGN 479 thousand was reported (Note 8).
• o Pursuant to the agreement to purchase and sale of financial instruments has transferred the ownership of 20 500 pcs. repurchased own bonds with ISIN BG2100002224, whereby the financial relations with the Assignor under three contracts for transfer of the receivable and the annexation to them are settled (Note 16.2, 17 and 28).
• o Pursuant to the agreement to purchase and sale of financial instruments has transferred ownership of 6 000 pcs. (acquired) repurchased own bonds with ISIN BG2100002224, which finally settled the financial relationships under the concluded contract for the purchase and sale of Daru Invest EAD (related party until 22.3.2022).
• o Pursuant to contracts for the purchase and sale of financial instruments have sold 2 114 pcs own bonds with ISIN BG2100002224. As a result of the transactions, a profit from operations with investments and financial instruments in the amount of BGN 1 thousand was reported (Note 4).
• o A total of 21 391 pcs. repurchased own bonds with ISIN BG2100002224 have sold and losses from operations with investments and financial instruments in the amount of BGN 57 thousand (Note 8) and profits from operations with investments and financial instruments in the amount of BGN 4 thousand were reported (Note 4).
• o 495 pcs. repurchased own bonds with ISIN BG2100002224 have been transferred (acquired), which partially settled the financial transactions under the concluded contract for the purchase and sale of shares of Auto Union AD (related party until 30.06.2022).

22. Non-current liabilities to related parties

Loans principal

	31.12.2023	31.12.2022
	BGN'000	BGN'000
Starcom Holding AD - loan	-	13 797
	-	13 797

As of 31.12.2022

o The liability under a loan agreement from Starcom Holding AD is with an annual interest rate of 5.5%, a maturity date 05.05.2025 and a contractual limit of BGN 22 million.

23. Other non-current liabilities

	950	1 141
Lease liabilities	917	1 106
Retirement benefit obligations	33	35
	BGN'000	BGN'000
	31.12.2023	31.12.2022

24. Trade liabilities

	11 195	1 374
Payables to suppliers	11 195	1 374
	BGN'000	BGN'000
	31.12.2023	31.12.2022

25. Current liabilities to related parties 25.1. Current borrowings – principal

	31.12.2023 BGN'000	31.12.2022 BGN'000
Starcom Holding AD	37 198	-
Euroins Romania Asiguarare – Reasigurare S.A., Romania (in insolvency)	-	3 227
IC Euroins AD	-	4 158
	37 198	7 385

As of 31.12.2023

• o The liability to Starcom Holding AD is under two loan agreements, as follows:
  • ➢ BGN 28 984 thousand with an annual interest rate of 5.5%, maturity date 31.12.2024 and a contractual limit of BGN 40 million.
    • ➢ BGN 8 214 thousand with an annual interest rate of 6.0% + 3M EURIBOR, maturity date 31.12.2024 and a contractual limit of EUR 4.2 million.

As of 31.12.2022

• o The liability under loan agreement with Euroins Romania Asiguarare Reasigurare S.A. (in insolvency) for financial instruments is with an annual interest rate of 7.0% and maturity date 05.12.2023 (Note 7.1, 21).
• o The liability under loan agreement with IC Euroins AD for financial instruments is with an annual interest rate of 7.0% and maturity date 05.12.2023 (Note 7.1, 21).

25.2. Interest payables

	31.12.2023 BGN'000	31.12.2022 BGN'000
Starcom Holding AD (Notes 7.1, 19 and 22)	2 463	290
Euroins Romania Asiguarare – Reasigurare S.A., Romania (in insolvency) - interest under financial instruments loan agreement
(Notes 7.1, 21 and 25.1).	-	218
IC Euroins AD - interest under financial instruments loan agreement
(Notes 7.1, 21 and 25.1).	-	282
	2 463	790

25.3. Other payables

	31.12.2023 BGN'000	31.12.2022 BGN'000
Euroins Romania Asiguarare – Reasigurare S.A., Romania (in insolvency)	-	910
IC Euroins AD	-	155
IC Euroins Life AD	30	30
IC EIG Re EAD (loss of control as of 31.12.2023)	-	5
	30	1 100

As of 31.12.2023

The company has other obligations to the following related parties:

o BGN 30 thousand liabilities to IC Euroins Life AD under swap agreement.

As of 31.12.2022

The main liabilities of the Company to related parties are:

• o BGN 151 thousand liabilities to IC Euroins AD under swap agreement and trade payables BGN 4 thousand.
• o BGN 895 thousand liabilities to Euroins Romania Asiguarare Reasigurare S.A., Romania, (in insolvency) under swap agreement and trade payables – BGN 15 thousand.
• o BGN 30 thousand liabilities to IC Euroins Life AD under swap agreement.
• o BGN 5 thousand liabilities to IC EIG RE EAD (loss of control as of 31.12.2023) under swap agreement.

26. Other current liabilities

	31.12.2023	31.12.2022
	BGN'000	BGN'000
Liabilities under contracts for the assignment of receivables	58 689	14
Liabilities to transferors	8	-
Interest payables	-	22
Tax payables	1 675	212
Payables to employees and social security institutions	183	204
Dividends payables	249	249
Dividends payables – related parties – Starcom Holding AD	101	101
Lease liabilities	269	202
Other liabilities	179	478
	61 353	1 482

27. Non-cash transactions

During the reporting periods, the Company has concluded the following investment and financial transactions that do not use cash or cash equivalents and are not reflected in the cash flow statement:

In 2023

• o Pursuant to an Agreement, a subsidiary of Eurohold Bulgaria AD replace another subsidiary of Eurohold Bulgaria AD in its capacity as a lender under a loan agreement for financial instruments with 2 126 pcs. due from Eurohold Bulgaria AD notes from the EMTN Program in EUR with ISIN XS1731768302 with a total nominal value of EUR 2 126 thousand and unpaid interest in the amount of BGN 91 thousand (Note 7.1 and 25.1).
• o The company has conducted a swap transaction of a European Commercial Papers (ECP) issue bought back before maturity with ISIN XS2491929290 with another similar type of securities, both with a nominal value of EUR 2 500 thousand (Note 20).
• o The company has conducted swap transactions of European Commercial Papers (ECP) issue bought back before maturity with ISIN XS2565406654 and with a nominal value of EUR 27 500 thousand and at the same time undertook to replace them with another similar type of securities (Note 20).
• o Pursuant to the Agreement for the purchase and sale of a receivable, a liability in the amount of EUR 10 143 thousand of Eurohold Bulgaria AD to a subsidiary company (Assignor) was transferred to another subsidiary company (Assignee).

In 2022

o Pursuant to loan agreement for financial instruments with a related party Eurohold Bulgaria AD acquired 2 126 pcs. own securities from the EMTN Program in EUR with ISIN XS1731768302, under which the company has suffered interest amounting to BGN 282 thousand (Notes 7.1 and 25.1).

• o Pursuant to loan agreement for financial instruments with a related party Eurohold Bulgaria AD acquired 1 650 pcs. own securities from the EMTN Program in EUR with ISIN XS1731768302, under which the company has suffered interest amounting to BGN 218 thousand (Notes 7.1 and 25.1).
• o Under a Debt replacement agreement, Eurohold Bulgaria AD as a Borrower has assumed a liability in the amount of BGN 14 426 thousand to a subsidiary (related party until 30.06.2022) - Lender and has replaced in debt another subsidiary - Initial Debtor.
• o Under a Debt replacement agreement, Eurohold Bulgaria AD as a Borrower has assumed a liability in the amount of BGN 4 782 thousand to a subsidiary (related party until 30.06.2022) - Lender and has replaced in debt another subsidiary (related party until 30.06.2022) - Initial Debtor.
• o Under an Assignment notification, Eurohold Bulgaria AD has transferred a liability to a subsidiary (related party until 30.06.2022) in the amount of BGN 4 782 thousand to a third party.
• o Under an Assignment notification, Eurohold Bulgaria AD has transferred a liability to a subsidiary (related party until 30.06.2022) in the amount of BGN 14 426 thousand to a third party.
• o Under a Set-off agreement with a subsidiary, Eurohold Bulgaria AD has set off a liability in the amount of EUR 2 500 thousand with a receivable in the amount of EUR 96 thousand up to the amount of the receivable.
• o Under a Set-off agreement with a third party, Eurohold Bulgaria AD has set off a receivable in the amount of GBP 69 thousand with a liability of GBP 54 thousand up to the amount of the liability
• o Under a Receivables transfer agreement, a third party Assignor has transferred to Eurohold Bulgaria AD - Assignee its receivable from a third company outside the group in the amount of BGN 21 000 thousand (Note 16). The financial relations are settled with the transfer to the patrimony of the Assignor a total of 10 681 pcs. repurchased own bonds with ISIN BG2100002224, with a par value of EUR 1 000 each (Note 21).
• o Under a Receivables transfer agreement, a third party Assignor has transferred to Eurohold Bulgaria AD - Assignee its receivable from a subsidiary of Eurohold Bulgaria AD in the amount of BGN 14 429 thousand. The financial relations are settled with the transfer to the patrimony of the Assignor a total of 7 375 pcs. repurchased own bonds with ISIN BG2100002224, with a par value of EUR 1 000 each (Note 21).
• o Under a Receivables transfer agreement, a third party Assignor has transferred to Eurohold Bulgaria AD - Assignee its receivable from a subsidiary of Eurohold Bulgaria AD in the amount of BGN 4 782 thousand. The financial relations are settled with the transfer to the patrimony of the Assignor a total of 2 444 pcs. repurchased own bonds with ISIN BG2100002224, with a par value of EUR 1 000 each (Note 21).
• o Under a Set-off agreement with a subsidiary, Eurohold Bulgaria AD has set off a liability in the amount of BGN 55 thousand with a receivable of BGN 42 thousand up to the amount of the receivable.
• o Under a Debt replacement agreement, a subsidiary (related party until 30.06.2022) of Eurohold Bulgaria AD as a Borrower has assumed liabilities in the amount of BGN 4 370 thousand to a subsidiary (related party until 30.06.2022) - Lender and has replaced in debt Eurohold Bulgaria AD - Initial Debtor.
• o Under a Settlement agreement with a subsidiary (related party until 30.06.2022), Eurohold Bulgaria AD has set off a liability in the amount of BGN 4 370 thousand with a receivable in the amount of BGN 148 thousand up to the amount of the receivable.
• o Under a contract for the purchase and sale of financial instruments, the ownership of 6 000 pcs. repurchased own bonds with ISIN BG2100002224 were transferred (acquired), and the liability with the transferor was settled with the sale of 100% of the shares of Daru Invest EAD (related party until 22.03.2022).

• o Under a Debt Substitution Agreement, Eurohold Bulgaria AD, as the Initial Debtor, closes its own liability in the amount of BGN 735 thousand to a subsidiary (related party until 30.06.2022) - Creditor, and the closure of this liability represents the covering of part from the receivable that Eurohold Bulgaria AD owns for the sale of the shares of the same subsidiary (related party until 30.06.2022) from its buyer - Transferee (third party).
• o Under a Debt Substitution Agreement, Eurohold Bulgaria AD, as the Initial Debtor, closes its own liability in the amount of BGN 4 256 thousand to a subsidiary (related party until 30.06.2022) - Creditor, and the closure of this liability represents the covering of part of the receivable that Eurohold Bulgaria AD owns for the sale of the shares of the same subsidiary (related party until 30.06.2022) from its buyer - Transferee (third party).
• o Pursuant to the Tripartite Agreement and Agreement has transferred ownership of 495 pcs. (acquired) repurchased own bonds with ISIN BG2100002224, which partially settled the financial relationships under the concluded contract for the purchase and sale of shares of Auto Union AD (related party until 30.06.2022).
• o Pursuant to the Agreement for the transfer of receivables, Eurohold Bulgaria AD as Assignor transfers its receivable worth BGN 189 thousand from one subsidiary (related party until 30.06.2022) - Debtor of a second subsidiary (related party until 30.06. 2022) – Assignor. Pursuant to the Agreement for the set-off of counter-obligations between Eurohold Bulgaria AD and the second subsidiary (related entity until 30.06.2022), the transferred claim in the amount of BGN 189,000 is set-off against part of the obligation that Eurohold Bulgaria AD has towards the second subsidiary (related party until 30.06.2022).
• o Pursuant to the Tripartite Agreement, a claim was set off from a transferee with an obligation under a loan with a related party in the amount of BGN 7 808 thousand.
• o Pursuant to a swap agreement, the Company exchanged a Euro Commercial Book (ECP) issue repurchased prior to maturity with ISIN XS2430057443 for a newly issued issue with ISIN XS2565406654, both with a nominal value of EUR 27 500 thousand (Note 20).
• o In connection with a loan agreement concluded with a credit institution in December 2022, the lender has deducted EUR 3 878 thousand. The amount was used to cover loan costs (consulting services, insurance, fees).
• o Upon repurchase of own securities from the EMTN Program in EUR with ISIN XS1731768302 with a nominal value of EUR 31 000 thousand and interest in the amount of EUR 44 thousand, payments were made on behalf of the Company directly to the intermediaries of the holders on the securities with funds from a loan granted.
• o Pursuant to the Agreement for set-off of counter-obligations with the subsidiary Eurohold Bulgaria AD, set-off of a claim in the amount of BGN 50 thousand with a liability of BGN 1 742 thousand up to the amount of the claim.
• o Pursuant to the Agreement for set-off of counter-obligations with a subsidiary (related party until 30.06.2022), Eurohold Bulgaria AD has set-off a claim worth BGN 8 thousand with a liability of BGN 20 thousand up to the amount of the claim.
• o Pursuant to the Agreement for set-off of counter-obligations with the subsidiary Eurohold Bulgaria AD, set-off of a liability in the amount of BGN 85 thousand (BGN 77 thousand principal and BGN 8 thousand interest) with a claim for BGN 13 676 thousand (BGN 13,348 thousand principal and BGN 328 thousand interest) up to the amount of the obligation.
• o Pursuant to the Agreement for set-off of counter-obligations with a subsidiary (related party until 30.06.2022) Eurohold Bulgaria AD has set-off a claim worth BGN 7 thousand with a liability of BGN 21 thousand up to the amount of the claim.

28. Contingent, liabilities and commitments

Litigations

As of 31.12.2023, there are no significant lawsuits filed against the Company.

Warranties and provided guarantees

The company is a co-debtor/guarantor for loans received from related parties as follows:

Business	Third /	Amount in EUR'000	Amount in BGN'000	Amount in EUR'000	Amount in BGN'000	MATURITY (EUR'000)
area	Related parties	as of 31.12.2023	as of 31.12.2023	as of 31.12. 2022	as of 31.12.2022	2024	2025	2026	2027	2028	after 2028
Energy sub-holding
Corporate payment guarantee	Related parties	3 500	6 845	3 500	6 845	3 500	-	-	-	-	-
Working capital loans	Related parties	20 189	39 486	19 238	37 626	5 430	-	-	14 759	-	-
Corporate guarantee in connection with an acquisition	Related parties	220 000	430 283	220 000	430 283	-	-	-	220 000	-	-
Insurance sub-holding
Bond loan	Related parties	-	-	10 000	34 622	-	-	-	-	-	-
Parent company
Bank loans for investment purposes	Related parties	5 000	9 779	5 000	9 779	5 000	-	-	-	-	-
Group of leasing companies*
For financing leasing activity	Related parties until 30.06.2022	18 519	36 220	21 891	42 815	7 749	5 534	4 048	1 018	170	-
Group of automotive companies*
Working capital loans	Related parties until 30.06.2022	5 167	10 106	4 788	9 365	2 542	523	523	523	523	533
	TOTAL:	272 375	532 719	284 417	571 335	24 221	6 057		4 571 236 300	693	533

* Eurohold Bulgaria AD is selling the companies from the automotive and leasing segment in 2022. It is expected that the new owners will act as a guarantor for the mentioned loans from banking/financial institutions.

In connection with financing as part of a package deal, a pledge of 35% shares of a subsidiary was established.

In connection with a concluded contract for financing by a financial institution, a pledge of shares of a subsidiary company was established (Note 20).

In connection with a loan contract by a credit institution in 12.2022, renegotiated in 09.2023, a pledge of shares of a subsidiary company and a pledge of bonds was established (Note 20). The company is a guarantor under issued bank guarantees **, as follows:

Company of:	Amount in EUR'000 as of 31.12.2023	Amount in BGN'000 as of 31.12.2023	Amount in EUR'000 as of 31.12.2022	Amount in BGN'000 as of 31.12.2022	MATURITY OF EXPOSURE AS OF 31.12.2023 (EUR'000)
Automotive subholding (related party until 30.6.2022)	2 050	4 009	2 050	4 009	2024
Automotive subholding (related party until 30.6.2022)	1 662	3 251	1 800	3 520	2024
TOTAL:	3 712	7 260	3 850	7 529

** Eurohold Bulgaria AD is selling the companies from the automotive and leasing segment in 2022. It is expected that the new owners will act as a guarantor for the mentioned loans from banking/financial institutions.

The liabilities of the Company have guaranteed by related parties are as follows:

Company/ Guarantor	Currency	Guaranteed liability	Guaranteed amount as of 31.12.2023 in original currency (EUR'000)	Maturity date
Euroins Insurance Group AD	EUR	Issue of bonds (EMTN programme)	70 000	07.2026
Euroins Insurance Group AD	EUR	Issue of bonds (EMTN programme)	10 000	12.2026
Euroins Insurance Group AD Pledge of shares of a subsidiary and pledge of debt notes	EUR	Loan from financial institution	15 084	06.2025

Established guarantees in favor of the Company:

Company/ Guarantor	Currency	Guaranteed liability	Guaranteed amount as of 31.12.2022 in original currency	Maturity date
Milena Milchova Cuentcheva, Procurator	BGN	Management guarantee	3 330	03.2024 *
*Automatic renewal with 1 year.

29. Transactions and balances with related parties

The conditions under which the transactions were made do not deviate from the market for such transactions.

The related parties of the Company are as follows:

• Starcom Holding AD, Bulgaria – major shareholder in Eurohold Bulgaria AD.
• Starcom Finance EAD, Bulgaria subsidiary of Starcom Holding AD, Bulgaria;
• Quintar Capital Limited, Hong Kong, China subsidiary of Starcom Holding AD, Bulgaria;
• Hanson Asset Management Ltd, United Kingdom subsidiary of Starcom Holding AD, Bulgaria;
• Swiss Global Asset Management AG, Switzerland subsidiary of Starcom Holding AD, Bulgaria since 03.05.2022;
• Vedernik EAD, Bulgaria since 17.8.2023;
• Solars Energy AD associate of Starcom Holding AD since October, 2022.

Subsidiaries of Eurohold Bulgaria AD:

• Euroins Insurance Group AD (EIG) – subsidiary of Eurohold Bulgaria AD;
• IC Euroins AD, Bulgaria subsidiary of EIG;
• Euroins Romania Asiguarare Reasigurare S.A., Romania (in insolvency) subsidiary of EIG;
• Euroins Osigurovanje AD, North Macedonia subsidiary of EIG;
• IC Euroins Life EAD, Bulgaria subsidiary of EIG;
• IC Euroins Ukraine PrAT, Ukraine subsidiary of EIG;
• European Travel Insurance PrAT, Ukraine subsidiary of EIG;
• Е ЕCLAIM Settlement Services Single Member P.C. (prev.Euroins Claims I.K.E.), Greece subsidiary of EIG;
• IC Euroins Georgia JSC, Georgia subsidiary of EIG;
• Shardeni 2017 Ltd., Georgia subsidiary of EIG since 29.02.2023 г;
• PHOENIX MGA SERVICES S.R.L., Romania subsidiary of EIG established on 12.06.2023.
• CJSC Insurance company Euroins, Belarus subsidiary of EIG (former CJSC Insurance company ERGO) until 30.12.2022;
• IC Euroins, Russian Federation associated of EIG until 30.12.2022;
• As of 31.12.2023, the control of "ZD EIG Re" EAD, a subsidiary of "Euroins Insurance Group" AD, has been lost, and all necessary notifications to the competent authority have been performed, in line with the applicable legislation.

- Daru Invest EAD, Bulgaria – subsidiary of Eurohold Bulgaria AD until 22.03.2022;

- Avto Union AD (AU), Bulgaria – subsidiary of Eurohold Bulgaria AD until 30.06.2022;

• Avto Union Service EOOD, Bulgaria subsidiary of AU related party until 30.06.2022;
• Auto Italia EAD, Bulgaria subsidiary of AU related party until 30.06.2022;
• Bulvaria EOOD, Bulgaria subsidiary of AU (previous name Bulvaria Varna EOOD) related party until 30.06.2022;
• Bulvaria Sofia EAD, Bulgaria subsidiary of AU related party until 30.06.2022;
• Daru Car AD, Bulgaria subsidiary of AU related party until 30.06.2022;
• Star Motors EOOD, Bulgaria subsidiary of AU related party until 11.05.2022;
• Star Motors DOOEL, North Macedonia through Star Motors EOOD subsidiary of AU related party until 11.05.2022;
• Star Motors SH.P.K., Kosovo through Star Motors EOOD subsidiary of AU related party until 11.05.2022;
• Motohub OOD, Bulgaria subsidiary of AU related party until 30.06.2022;
• Motobul EAD, Bulgaria subsidiary of AU related party until 30.06.2022;
• Benzin Finance EAD, Bulgaria subsidiary of AU related party until 30.06.2022;
• Bopar Pro S.R.L, Romania through Motobul EAD subsidiary of AU related party until 30.06.2022;
• China Motor Company AD, Bulgaria a subsidiary of AU AD related party until 30.06.2022;
• N Auto Sofia EAD, Bulgaria a subsidiary of AU AD until 02.08.2021.
• Espas Auto OOD, Bulgaria through N Auto Sofia EAD a subsidiary of AU AD until 02.08.2021.
• EA Properties EOOD, Bulgaria through N Auto Sofia EAD a subsidiary of AU AD until 02.08.2021.

- Eurolease Group AD (ELG) – subsidiary of Eurohold Bulgaria AD until 30.06.2022;

• Money Lease EAD (previous name Eurolease Auto EAD), Bulgaria subsidiary of ELG related party until 30.06.2022;
• Eurolease Auto Romania AD, Romania subsidiary of ELG related party until 30.06.2022;
• Eurolease Auto DOOEL, North Macedonia subsidiary of ELG related party until 30.06.2022;
• Eurolease Rent-a-Car EOOD, Bulgaria subsidiary of ELG related party until 30.06.2022;
• Finacity AD, Bulgaria (previous name Amigo Leasing EAD) subsidiary of ELG related party until 30.06.2022;
• Kazam Bulgaria EAD, Bulgaria (previous name Autoplaza EAD) subsidiary of ELG related party until 30.06.2022;
• Sofia Motors EOOD, Bulgaria subsidiary of ELG related party until 30.06.2022;
• Amigo Finance EOOD, Bulgaria (previous name Mogo Bulgaria EOOD) subsidiary of ELG from 01.12.2021 – related party until 30.06.2022;
• Euro-Finance AD – subsidiary of Eurohold Bulgaria AD;

- Eastern European Electric Company II B.V, Netherlands - subsidiary of Eurohold Bulgaria AD;

• Eastern European Electric Company III BV, Netherlands a subsidiary of Eastern European Electric Company BV. II, Netherlands.
• Eastern European Electric Company BV, Netherlands a subsidiary of Eastern European Electric Company BV. III, Netherlands.
• Electrodistribution Grid West AD, Bulgaria a subsidiary of Eastern European Electric Company BV, Netherlands from 27.07.2021.

• Electrohold Information and Communication Technologies AD, Bulgaria through CEZ Distribution Bulgaria AD – a subsidiary of Eastern European Electric Company BV, Netherlands from 27.07.2021.
• Electrohold Sales Bulgaria AD, Bulgaria a subsidiary of Eastern European Electric Company BV, Netherlands from 27.07.2021.
• Electrohold Bulgaria EAD, Bulgaria a subsidiary of Eastern European Electric Company BV, Netherlands from 27.07.2021.
• Electrohold EPS EAD, Bulgaria through Electrohold Bulgaria EAD, Bulgaria a subsidiary of Eastern European Electric Company BV, Netherlands. Established in 2022.
• Electrohold Sales Bulgaria AD, Bulgaria a subsidiary of Eastern European Electric Company BV, Netherlands
• Electrohold Trade EAD a subsidiary of Eastern European Electric Company BV, Netherlands from 27.07.2021.
• Free Energy Project Oreshets EOOD, Bulgaria a subsidiary of Eastern European Electric Company BV, Netherlands from 27.07.2021.
• Bara Group EOOD, Bulgaria a subsidiary of Eastern European Electric Company BV, Netherlands from 27 July 2021.
• Electrohold Green EOOD, Bulgaria - subsidiary of Eurohold Bulgaria AD – established in 2022.

29.1. The related parties' transactions

29.1.1. Transactions with subsidiaries and other related parties under common control

In 2023

• o Pursuant to an Agreement, IC EIG-RE EAD (loss of control as of 31.12.2023) replace IC Euroins AD in its capacity as a lender under a loan agreement for financial instruments with 2 126 pcs. due from Eurohold Bulgaria AD securities from the EMTN Program in EUR with ISIN XS1731768302 with a total nominal value of EUR 2 126 thousand and unpaid interest in the amount of BGN 91 thousand (Note 7.1 and 25.1).
• o The company has performed a swap transaction with IC Euroins AD of repurchased own European Commercial Papers (ECP) issuance with ISIN XS2491929290 before its maturity, with other similar financial instruments, both with a nominal value of 2 500 thousand euros (Note 20).
• o The company has performed a swap transaction with IC Euroins Life AD of repurchased own European Commercial Papers (ECP) issuance with ISIN XS2565406654 before its maturity, with other similar financial instruments, both with a nominal value of 1 302 thousand euros (Note 20).
• o The company has performed a swap transaction with IC EIG Re AD (loss of control as of 31.12.2023) of repurchased own European Commercial Papers (ECP) issuance with ISIN XS2565406654 before its maturity, with other similar financial instruments, both with a nominal value of 15 478 thousand euros (Note 20).
• o The company has performed a swap transaction with IC Euroins AD of repurchased own European Commercial Papers (ECP) issuance with ISIN XS2565406654 before its maturity, with other similar financial instruments, both with a nominal value of 10 120 thousand euros (Note 20).
• o Pursuant to the Sale and Purchase Agreement, an obligation in the amount of EUR 10 143 thousand of Eurohold Bulgaria AD to ZD Euroins AD - Assignor has been transferred to ZD EIG-Re EAD - Assignee (loss of control as of 31.12.2023).

In 2022

o Pursuant to the contract for the loan of financial instruments with ZD Euroins AD, 2 126 units securities from the EMTN Program in EUR with ISIN XS1731768302 were acquired from Eurohold Bulgaria AD, as a result of which the company reported interest expenses in the amount of BGN 282 thousand (Notes 7.1 and 26.1).

• o Pursuant to the contract for the loan of financial instruments with Euroins Romania Insurance Reinsurance S.A., 1 650 units securities from the EMTN Program in EUR with ISIN XS1731768302 were acquired from Eurohold Bulgaria AD, as a result of which the company has reported interest expenses in the amount of BGN 218 thousand (Notes 7.1 and 26.1).
• o By virtue of a Debt replacement agreement, the Company as a Borrower has assumed a liability in the amount of BGN 14 426 thousand to Avto Union AD (related party until 30.06.2022) - Lender and has replaced Euroins Insurance Group AD - Initial Debtor in debt.
• o In accordance with a Debt replacement agreement, the Company as a Borrower has assumed a liability in the amount of BGN 4 782 thousand to Daru Car EAD (related party until 30.06.2022) - Lender and has replaced in debt Auto Union AD - Initial Debtor.
• o Pursuant to an Assignment Notification, the Company has transferred a liability to Daru Car EAD (related party until 30.06.2022) in the amount of BGN 4 782 thousand to a company outside the group.
• o By virtue of an Assignment Notification, the Company has transferred a liability to Avto Union AD (related party until 30.06.2022) in the amount of BGN 14 426 thousand to a company outside the group.
• o In accordance with a Set-off agreement with the Eastern European Electric Company B.V. Eurohold Bulgaria AD has set off a liability in the amount of EUR 2 500 thousand with a receivable of EUR 96 thousand up to the amount of the receivable.
• o Pursuant to a Set-off agreement with IC EIG-Re AD (loss of control as of 31.12.2023), Eurohold Bulgaria AD has set off a liability in the amount of BGN 55 thousand with a receivable of BGN 42 thousand up to the amount of the receivable.
• o By virtue of a Debt replacement agreement, Eurolease Group AD (related party until 30.06.2022) as a Borrower has assumed liabilities amounting to BGN 4 370 thousand to Eurolease Auto EAD (related party until 30.06.2022) - Lender and has replaced Eurohold Bulgaria AD - Initial Debtor in debt.
• o Pursuant to a Set-off agreement with Eurolease Group AD (related party until 30.06.2022), Eurohold Bulgaria AD has set off a liability in the amount of BGN 4 370 thousand with a receivable of BGN 148 thousand up to the amount of the receivable.
• o Pursuant to the contract for the purchase and sale of financial instruments, the ownership of 6 000 pcs. repurchased own bonds with ISIN BG2100002224 were transferred (acquired), and the liability with the transferor was settled with the sale of 100% of the shares of Daru Invest EAD (related party until 22.03.2022).
• o Pursuant to the contract for the purchase and sale of financial instruments from ZD EIG Re EAD (loss of control as of 31.12.2023), the ownership of 856 units was transferred. (acquired) repurchased own bonds with ISIN XS1731768302 of Eurohold Bulgaria AD. As of 31.12.2022, the financial relationships under these contracts have been fully settled (Note 22).
• o Pursuant to the contract for the purchase and sale of financial instruments from IC Euroins AD, the ownership of 450 units was transferred. (acquired) repurchased own bonds with ISIN XS1731768302 of Eurohold Bulgaria AD. As of 31.12.2022, the financial relationships under these contracts have been fully settled (Note 22).
• o The company performed a SWAP transaction with IC Euroins AD, buying back 25 pcs. ECP with ISIN: XS2344657163 with a face value of EUR 2 500 thousand worth EUR 2 500 thousand and simultaneously replaced it with 25 newly issued ECPs with ISIN: XS2491929290 for EUR 2 462.5 thousand (Note 21).
• o Pursuant to the Debt Substitution Agreement, Eurohold Bulgaria AD, as the Initial Debtor, closes its liability of BGN 735 thousand to Auto Union AD (related party until 30.06.2022) - Creditor, and the closure of this liability represents the covering of part of the receivable that Eurohold Bulgaria AD owns for the sale of the shares of Auto Union AD (related party until 30.06.2022) from its buyer - Transferee (third party).

• o Pursuant to the Debt Substitution Agreement, Eurohold Bulgaria AD, as the Initial Debtor, closes its liability in the amount of BGN 4 256 thousand to Eurolease Group AD (related party until 30.06.2022) - Creditor, and the closure of this liability represents the coverage of a part of the receivable that Eurohold Bulgaria AD owns for the sale of the shares of Eurolease Group AD (related party until 30.06.2022) from its buyer - Transferee (third party).
• o Pursuant to the Tripartite Agreement and Agreement has transferred ownership of 495 pcs. (acquired) repurchased own bonds with ISIN BG2100002224, which partially settled the financial relationships under the concluded contract for the purchase and sale of shares of Auto Union AD (related party until 30.06.2022).
• o Pursuant to the Agreement for the transfer of receivables, Eurohold Bulgaria AD as Assignor transfers its receivable worth BGN 189 thousand from Motobul EAD (related party until 30.06.2022) - Debtor of Auto Union Service EOOD (related party until 30.06. 2022) – Assignor. Pursuant to the Agreement for set-off of counter-obligations between Eurohold Bulgaria AD and Auto Union Service EOOD (related party until 30.06.2022), the transferred claim in the amount of BGN 189 thousand is setoff against part of the obligation that Eurohold Bulgaria AD has to Auto Union Service EOOD (related party until 30.06.2022).
• o Pursuant to the Tripartite Agreement, a receivable from a transferee with a loan obligation to Starcom Holding AD in the amount of BGN 7 808 thousand was set off.
• o The company performed a SWAP transaction with Euroins Romania Insurance Reinsurance S.A., buying back ECP with ISIN: XS2430057443 with a nominal value of EUR 23 470 thousand and a value of EUR 23 340.9 thousand and simultaneously exchanged it for newly issued ECPs with ISIN: XS2565406654 for EUR 22 883.3 thousand (Note 21).
• o The company performed a SWAP transaction with ZD Euroins Life AD, buying back ECP with ISIN: XS2430057443 with a nominal value of EUR 660 thousand and a value of EUR 659.0 thousand and at the same time exchanged it for newly issued ECP with ISIN: XS2565406654 for EUR 643.5 thousand (Note 21).
• o The company performed a SWAP transaction with ZD Euroins AD, buying back ECP with ISIN: XS2430057443 with a nominal value of EUR 3 270 thousand and a value of EUR 3 265.3 thousand and simultaneously exchanged it for newly issued ECPs with ISIN: XS2565406654 for EUR 3 188.3 thousand (Note 21).
• o The company performed a SWAP transaction with ZD EIG-Re AD (loss of control as of 31.12.2023), buying back ECP with ISIN: XS2430057443 with a face value of EUR 100 thousand and a value of EUR 99.8 thousand and at the same time exchanged it for newly issued ECP with ISIN: XS2565406654 for EUR 99.5 thousand (Note 21).
• o On behalf of Eurohold Bulgaria AD, a third party paid insurance on a loan in the amount of EUR 360 thousand to a related party.
• o Pursuant to the Agreement for set-off of counter-obligations with ZD EIG-Re AD (loss of control as of 31.12.2023), Eurohold Bulgaria AD has set-off a claim worth BGN 50 thousand with a liability of BGN 1 742 thousand up to the amount of the claim.
• o Pursuant to the Agreement for set-off of counter-obligations with Money Lease EAD (former name Eurolease Auto EAD, related party until 30.06.2022) Eurohold Bulgaria AD has set-off a receivable in the amount of BGN 8 thousand with a liability of BGN 20 thousand up to the amount of the receivable.
• o Pursuant to the Agreement for set-off with Euroins Insurance Group AD, the Company has set off a liability in the amount of BGN 85 thousand (BGN 77 thousand principal and BGN 8 thousand interest) with a claim for BGN 13 676 thousand (BGN 13 348 thousand principal and BGN 328 thousand interest) up to the amount of the obligation.

o Pursuant to the Agreement for set-off of counter-obligations with Avto Union Service EOOD (related party until 30.06.2022) Eurohold Bulgaria AD has set-off a receivable in the amount of BGN 7 thousand with a liability for BGN 21 thousand up to the amount of the receivable.

The other related parties' transactions for 2023 and 2022 are disclosed in Notes 3, 5.1, 7.1, 8.1, 9.1, 10.1, 12.1 and 12.2.

29.1.2. Transactions with key management personnel

The key management personnel of the Company include the members of the Management Board and the Supervisory Board. Remuneration of key management personnel includes the following costs:

	31.12.2023	31.12.2022
	BGN	BGN
Short-term remunerations:
Salaries	363 718	364 313
Social security costs	7 806	7 492
Total short - term remuneration	371 524	371 805

29.1.3. Related party balances at the end of the year

Related party balances are disclosed in Notes 15, 19, 23, 25 and 26.

30. Events after the end of the reporting period

There are no other significant events after the date of the reporting period that require additional disclosure or adjustments to the separate financial statements of Eurohold Bulgaria AD as of 31 December 2023.

4

Internal information 31 December 2023

Eurohold Bulgaria AD

INTERNAL INFORMATION

under Article 7 of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse

Eurohold Bulgaria AD publicly discloses inside information pursuant to Article 7 of Regulation (EU) No 596/2014 of the European Parliament and of the Council to the Financial Supervision Authority, the Bulgarian Stock Exchange and the public through the financial media Extra News at the following internet address: www.x3news.com, where the inside information is available at the following link: http://www.x3news.com/?page=News&uniqid=63d7b765a69b1

Publicly disclosed internal information can also be found on the website of "Eurohold Bulgaria" AD www.eurohold.bg, where it is available in the "Internal Information" section at the following link: https://www.eurohold.bg/internal-information -645.html

The management of Eurohold Bulgaria AD believes that there is no other information that has not been publicly disclosed by it and that would be important to shareholders and investors in making an investment decision.

Kiril Boshov, KIRIL IVANOV BOSHOV Digitally signed by KIRIL IVANOV BOSHOV Date: 2024.03.25 16:18:59 +02'00'

Chairman of the Board and Executive Director of Eurohold Bulgaria AD

ASEN MINCHEV MINCHEV Digitally signed by ASEN MINCHEV MINCHEV Date: 2024.03.25 16:19:21 +02'00'

Assen Minchev, Executive Director of Eurohold Bulgaria AD

1

5

Additional information

Additional information at 31 December 2023

ADDITIONAL INFORMATION

to the interim condensed individual activity report for the period 1 January – 31 December 2023

pursuant to REGULATION No. 2 of 9 November 2021 on initial and subsequent disclosure of information in public offerings of securities and admission of securities to trading on a regulated market

1. Information about changes in accounting policies during the reporting period, the reasons for them and how they affect the issuer's financial result and equity

There were no changes in the accounting policies of Eurohold Bulgaria AD during the reporting period.

2. Information about changes in the issuer's group of companies within the meaning of the Accounting Act, if it participates in such a group

On 29 May 2023, Euroinsurance Group (EIG) acquired a subsidiary in Georgia. EIG is 100% owner of the trading company "Shardeni 2017" Ltd., Georgia.

In the third quarter of 2023, a new company was established in the Eurohold Group, part of the Euroins Insurance Group. On 12.06.2023 The EIG Insurance Group established a subsidiary in Romania, PHOENIX MGA SERVICES S.R.L., Romania. EIG is the sole owner of the capital of the newly established company. The main activity of the entity is: Business and management consulting.

As of 31.12.2023, the control of "ZD EIG Re" EAD, a subsidiary of "Euroins Insurance Group" AD, has been lost, and all necessary notifications to the competent authority have been performed, in line with the applicable legislation.

3. Information on the results of organizational changes within the issuer, such as reorganization, sale of a group of companies within the meaning of the Accounting Act, in-kind contributions by the company, lease of property, long-term investments, discontinuation of operations

There are no organizational changes within the Eurohold group.

4. An opinion of the governing body on the feasibility of the published forecasts for the current financial year, taking into account the results of the current quarter, as well as information on the factors and circumstances that will affect the achievement of the forecast results at least until the end of the current year

There are no published projections for 2023.

5. Data on the persons directly and indirectly holding at least 5 per cent of the votes in the general meeting at the end of the relevant quarter and the changes in the votes held by the persons for the period from the beginning of the current financial year to the end of the reporting period

	Name	Shares	% of equity
1.	Starcom Holding AD	130 454 157	50.08%
2.	KJK Fund II Sicav-Sif Balkan Discovery	28 116 873	10.79%
3.	Boston Management and Research, through the following funds managed by it:	22 482 578	8.63%

	- Global Opportunities Portfolio,
	- Global Macro Portfolio,
	- Global Macro Absolute Return Advantage
	Portfolio,
	- Global Macro Capital Opportunities Portfolio.
4	SLS Holding AD	22 606 273	8.68%
	PAC Future through the following funds managed by
	it:
5	- UPF Future	13 179 398	5.06%
	- PPF Future
	- DPF Future

6. Data on the shares held by the issuer's management and control bodies as of the end of the relevant quarter, as well as the changes that occurred for the period from the beginning of the current financial year to the end of the reporting period for each person separately

		Name	Shares	% of equity
	1.	Dimitar Stoyanov Dimitrov	200	-
	2.	Veleslav Hristov	200	-

7. Information on pending judicial, administrative or arbitration proceedings concerning debts or claims amounting to at least 10 per cent of the issuer's equity capital; if the total value of the issuer's debts or claims in all proceedings exceeds 10 per cent of its equity capital, information shall be provided for each proceeding separately

There is no pending litigation or arbitration relating to the Company or any of its subsidiaries, with a value of the claim of at least 10 per cent of the equity of the Company.

8. Information on loans, guarantees or commitments granted by the issuer or its subsidiary to a person or its subsidiary, including related persons, indicating the nature of the relationship between the issuer and the person, the amount of principal outstanding, the interest rate, the final repayment date, the amount of the commitment, the terms and period of

Transactions with related parties for the reporting period are disclosed in the Appendices to the Interim condensed individual financial report for 2023, as well as in the Interim condensed individual report on the activity as of 31 December 2023.

The conditions under which the transactions were carried out do not deviate from the market conditions for such type of transactions.

25 January 2024

Kiril Boshov,

Chairman of the Board and Executive Director and Executive Director of Eurohold Bulgaria AD

ASEN MINCHEV MINCHEV

Digitally signed by ASEN MINCHEV MINCHEV Date: 2024.03.25 16:20:45 +02'00'

Assen Minchev, Executive Director of Eurohold Bulgaria AD

2

6

Appendix 4

Appendix 4 31 December 2023

APPENDIX 4

to Art. 12, para. 1, point 1, Article 14 and Article 21, point 3, letter "a" and point 4, letter "a" of the REGULATION No. 2 of 9.11.2021 on initial and subsequent disclosure of information in the case of public offer of securities and admission of securities to trading on a regulated market

for the period 1 January - 30 December 2023

• 1. No change in the persons exercising control over the company
• 2. Opening of insolvency proceedings for the company or its subsidiary and all material stages related to the proceedings

No insolvency proceedings have been opened for the company.

On 9th June 2023, the Bucharest court decided to declare bankrupt Euroins Romania Asigurare Reasigurare SA ("Euroins Romania"), an indirect subsidiary of Eurohold Bulgaria AD. The insolvency proceedings were initiated on the basis of a claim filed by the Autoritatea de Supraveghere Financiară (Financial Supervisory Authority of Romania) based on a decision of the Autoritatea de Supraveghere Financiară (Financial Supervisory Authority of Romania) dated 17 March 2023, by which the regulator revoked the licence of Euroins Romania.

3. Conclusion or execution of material transactions

All concluded transactions, including material ones, are disclosed in the Appendices to the interim abbreviated individual financial report for 2023 and in the Interim Condensed Individual Financial Statement as of 31 December 2023.

• 4. No decision to enter into, terminate or cancel a joint venture agreement
• 5. No change in the company's auditors and reasons for the change
• 6. There has been no commencement or termination of any legal or arbitration proceedings relating to the debts or claims of the company or its subsidiary, with a cost of the claim of at least 10 per cent of the equity of the company
• 7. Purchase, sale or pledge of shares in commercial companies by the issuer or its subsidiary
  • » there is no
• 8. Other circumstances that the company believes may be relevant to investors in deciding whether to acquire, sell or continue to hold the publicly offered securities

All important events for Eurohold Bulgaria AD that occurred during 2023, as well as up to the date of preparation of this document, are disclosed in detail in the Interim Condensed Individual Financial Statement as of 31 December 2023.

25 January 2024

KIRIL IVANOV BOSHOV Digitally signed by KIRIL IVANOV BOSHOV Date: 2024.03.25 16:21:26 +02'00'

Kiril Boshov,

Chairman of the Board and Executive Director of Eurohold Bulgaria AD

ASEN MINCHEV MINCHEV

Digitally signed by ASEN MINCHEV MINCHEV Date: 2024.03.25 16:21:52 +02'00'

Assen Minchev,

EUROHOLD BULGARIA AD

Eurohold Bulgaria AD

2

7 Declaration of responsible persons

Declaration of responsible persons

DECLARATION

Article 100n, paragraph 4, item 4 of POSA

The undersigned,

• 1. Kiril Boshov Chairman of the Board and Executive Director of Eurohold Bulgaria AD
• 2. Assen Minchev Executive Director of Eurohold Bulgaria AD
• 3. Salih Trampov Chief Accountant of Eurohold Bulgaria AD (compiler of the financial statements)

WE DECLARE that to the best of our knowledge:

1. The Interim condensed separate financial statements as at 31.12.2023, prepared in accordance with applicable accounting standards, give a true and fair view of the assets and liabilities, financial position and profit or loss of Eurohold Bulgaria AD.;

2. The Interim condensed individual management report as at 31.12.2023 contains a reliable overview of the development and performance of Eurohold Bulgaria AD, as well as a description of the main risks and uncertainties facing the company.

	Declarators:	KIRIL IVANOV BOSHOV	Digitally signed by KIRIL IVANOV BOSHOV Date: 2024.03.25
1.	Kiril Boshov	ASEN	16:54:24 +02'00' Digitally signed by ASEN MINCHEV
2.	Assen Minchev	MINCHEV MINCHEV	MINCHEV Date: 2024.03.25 16:54:42 +02'00'
3.	Salih Trampov	SALIH REDZHEPOV TRAMPOV	Digitally signed by SALIH REDZHEPOV TRAMPOV Date: 2024.03.25 16:33:22 +02'00'