Aerostar SA

1 | A E R O S T A R S . A .

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Message from the President of the Board of Directors

Message from the CEO

I. GENERAL INFORMATION

1. Bases of Preparation of the Annual Report

4. Impact, Risk and Opportunity Management

Double Materiality

II. SUSTAINABILITY STATEMENT

5. Environmental Information

6. Social Information

AEROSTAR’s Own Workforce

Trial Chain Workers

Affected Communities

7. Business Conduct

8. Additional Topic

Information System Security

Reporting Compliance

2 | A E R O S T A R S . A .

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MESSAGE FROM THE PRESIDENT OF THE BOARD OF DIRECTORS OF AEROS T AR S.A.

Financiall y , our results for 2024 reflect the

resilience of our business. W e continued to

expand our presence in our customers’

supply chains while developing the

capabilities needed to meet the changing

market demands.

challenges overcome and significant

achievements. In spite of the complex

global context, we managed to deliver on

our commitments and achieve our

"The year 2024 was a year full of AEROS T AR is committed to the principles

of transparency and sustainabilit y , essential

for our long-term development. Beyond our

financial achievements, we have paid

particular attention to the non-financial

aspects that contribute to the sustainable

development of the compan y . W e will

continue to take the necessary decisions to

ensure the company’s performance and at

the same time maintain our commitments to

our shareholders, employees, partners and

communit y , thus contributing to the

economic and social development of our

President of the Board of Directors

3 | A E R O S T A R S . A .

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MESSAGE FROM THE CHIEF EXECUTIVE OFFICER OF AEROS T AR S.A.

In the commercial aircraf

line, we aim to strengthen our posi

the market and increase the number of

With regard to our business lines, for the

manufacture of aeronau

ical products, we

technological level of AEROS T AR supplied

products and means of produc

terms of defence products, we maintain

our mission as a

ier supplier to the

ional Defence, con

develop the capabili

ies related to the

maintenance of F-16 aircraf

folio of services offered to the MApN.

we can service. T o achieve these

goals, AEROS T AR con

inues its recruitment

and professional training policy as well as

its investment polic y .

aim to expand our footprint in our

customers’ supply chains and increase the In a macro-economic environment with

various uncertain

ies, including regional

icts, budget de

cits and a slow

economic growth in the European Union

region, AEROS T AR will adopt the necessary

decisions to ensure the company’s

performance and the sustainability of our

business and we strongly believe that

together we will con

inue to build a

successful future for AEROS T AR.

Alexandru Filip

Chief Executive Officer

4 | A E R O S T A R S . A .

In a dificult macroeconomic and

ical context, our objec

our development direc

ions clea r . The

ion market is witnessing a solid demand,

but the industry is constrained by factors

such as insuficient produc

ion capacit y ,

supply chain speci

c issues, rising produc

costs, shortage of skilled talent and the

growing need for training. These issues have

hindered the avia

ion industry from reaching

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I. GENERAL INFORM A TION

The compan y AEROS T AR S.A. was established on 1 7 April 1953 by Decision No. 1165 of the

Council of Ministers. The company AEROS T AR S.A. was established on 17 April 1953 by

Decision No. 1165 of the Council of Ministers. Since 1953 it has been successively named

URA-1953, IR A v (’Întreprinderea de Reparații A vioane’) -1970, I A v (’Întreprinderea de

A vioane’) -1978, and AEROS T AR S.A. since 1991, when it was registered as a joint-stock

company at the Trade Register Office in Bacău.

The company’s unique European Company Identif

cation Number (EUID) is

ROONRC.J04/1137/1991 and the LEI code for its identi

ication as a legal entity is

315700G9KRN3B7XDBB73;

Th e Annual Report o f AEROS T AR S.A. for the period January 1, 2024 - December 31, 2024 ,

was prepared in accordance with the reporting regulations in force, the EU Delegated

Regulation 2023/2772 supplementing Directive 2013/34/EU of the European Parliament and of

the Council with regard to sustainable reporting standards (CSRD), in order to provide

additional information to all stakeholders about the company’s sustainable strategy and the

progress made in its corporate processes and to transparently reinforce its commitment to

sustainable development and in compliance with the provisions of Law 24/2017 on issuers of

financial instruments and market operations and Regulatio n A. S. F . No. 5/2018 of the Financial

Supervisory Authority on issuers of financial instruments and market operations.

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

Our Sustainability Statement is prepared based on the double materiality analysis and in

accordance with the CSRD Directive and the EFRAG IG Guidelines, Materiality Assessment.

As part of it, we have analysed the specific material topics that we have explained in the

chapters "Environmental Information", "Social Information" and "Professional Conduct" in

accordance with the requirements of the thematic standards ESRS E1-E5, ESRS S1-S4. ESRS

The following sustainability aspects have been included in the materiality assessment as issues of

interest to our company: climate change, environmental issues (pollution, resources, circular

economy), working conditions, health and safety of the company’s employees, safety of our

products and services, stakeholders and professional conduct. W e also take a particular interest in

social performance and the company’s position in relation to governance, the communit y , as well

as additional topics such as cyber securit y .

The activities o f AEROS T AR are carried out at the registered office of the compan y , which

is located at 9 Condorilor Street, Bacău, postal code 600302.

Since January 2018, AEROS T AR has registered a secondary registered office and workplace

within the perimeter of the Iasi Internationa l Airport; in 2023 a new secondary registered office

and workplace was opened in the Fetești Municipality;

5 | A E R O S T A R S . A .

1. BASIS OF PRE P AR A TION OF THE ANNUAL REPORT

AEROS T AR did not omit any information corresponding to intellectual propert y , know-how or

innovation results.

The company’s financial statements were prepared in accordance with the International Financial

Reporting Standards (IFRS) as adopted by the European Union, Accounting Law no. 82/1991,

republished , a s amende d an d supplemented , an d ar e presente d i n accordanc e wit h th e requirements

of IAS 1, Order 2844/2016 for the approval of the Accounting Regulations in compliance with the

International Financial Reporting Standards.

The bases of preparation and presentation of the financial statements are disclosed in Note 3; the

separate financial statements prepared for the year 2024 are accompanied by the report of the

independent financial auditor.

The company AEROSTAR S.A. is listed on the Bucharest Stock Exchange under the code

ARS, and the records of shares and shareholders are kept, in accordance with the law, by S.C.

Depozitarul Central S.A. Bucharest.

Where appropriate, some of the information presented in accordance with the aforementioned

standards is supplemented with additional information in order to understand the analysis

performed or the context.

6 | A E R O S T A R S . A .

Aviation products Civil aviation maintenance

Defence systems

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1.1. AEROS T AR’s Activity and Products

AEROS T AR operates on three business lines that reflect the organizational and management

structure according to the services provided. The company’s core business is manufacturing.

The company’s main object of activity is "Manufacture of civil aircraft and spacecraft" - CAEN

In civil aviation we supply aerostructures, components and assemblies to the global aviation

W e ar e authorize d t o perfor m maintenanc e wor k o n Boein g 73 7 al l serie s an d Airbu s 320 , ce o &

neo family aircraft, as well as components.

W e are a maintenance centre for F-16 airplanes for the Romanian Arm y , a maintenance centre for

Black Hawk helicopters for the Ministry of Interna l Affairs, a maintenance centre for rocket

launcher systems for the Ministry of National Defence and we are part of the national defence

industry in accordance with Law 232/2016

AEROS T AR business lines

Manufacture of Aeronautical Products

The equipment, assemblies and parts produced by AEROS T AR are used on a large number of

commercial airplanes: Airbus A320, A321, A330, A350, Boeing B737, B787, B767,

Gulfstream G650, Dassault F7X, Bombardier Challenger 600 series and Global 5000/6000

By readapting to the new market requirements regarding the new production structure, as well as

the new quality and environmental protection requirements, AEROS T AR maintains its

leading position in Romania for the manufacture of aviation products and consolidates its

position in the supply chain of major global aviation and aerospace companies.

In 2024, a new program dedicated to landing gear components was successfully integrated,

marking an important step in the development of manufacturing capabilities. Earlier last year,

critical components of the Airbus A320 and Airbus A321 models were launched into

production. A special technical feature of this project is the machining of the locking grooves, a

process that is essential for the functionality of the components. T o meet the high quality and

efficiency requirements, an advanced technological solution had to be adopted.

7 | A E R O S T A R S . A .

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MRO Civil Aviation

AEROS T AR has a significant footprint in terms of business volume in the MRO Civi l A viation

sector, being an independent provider of industrial maintenance services for commercial

airplane s o f th e Airbu s A32 0 ceo&ne o an d Boein g B73 7 300-90 0 famil y . AEROS T A R i s EASA

Part-145 authorized with an extensive range of authorizations obtained from the civil aviation

In the year 2024 we celebrated 20 YEAR S A SA REGIONAL LEADER IN MRO SE R VICES.

The year 2024 represented a year of growth and development, highlighting among our

achievements the milestone of 100 aircraft released into service from the MAINTENANCE

CENTER IN IAȘI after the completion of the maintenance work and a cumulative total of over

1200 AIRCRAFT RELEASED INTO SE R VICE since the creation of the business line.

Defence Systems

On the defence systems business line, AEROS T AR is a leading supplier to the Romanian

Ministry of National Defence.

AEROS T AR is the Maintenance Centre for F-16 aircraft belonging to the Romanian Arm y .

AEROS T AR has constantly developed the necessary capabilities to strengthen its position as a

supplier, increasing its expertise in the field of maintenance and upgrading of military aircraft,

ground-to-ground launch systems and radio-locating communication systems, as part of the

command-control systems.

In 2024, the BLACK H A WK S-70 HELICOPTER BLACK H A WK S-70 MAINTENANCE

CENTER was inaugurated, a centre authorized by both the manufacturer - Sikorsky (part of the

Lockheed Martin group) and the National Military A viation Authorit y . The year 2024 also

marked the opening of the MAINTENANCE CENTER FOR THE HIMARS SYSTEM -

owned by the Romanian Ministry of National Defence.

8 | A E R O S T A R S . A .

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AEROS T AR’s presence in the Global Market

AEROS T AR operates in the global market for products and services in the aerospace and

defence industry as an independent compan y . AEROS T AR’s customers are located in Europe,

Asia, Africa, USA and Canada.

In Canada - US A we supply aviation products and i n Asia an d Africa we provide civil aviation

maintenance services. In Europe we provide maintenance services for civil aviation, aviation

products (landing gear systems, mechanical parts, assemblies and sub-assemblies), electronic

equipment and ground equipment.

In Romania we provide repair services for military aircraft and repair of electronic parts and

components for military aircraft, upgrades, integrations and maintenance for military aviation

systems, repair services of systems and launchers and civil aviation products.

9 | A E R O S T A R S . A .

Romania ~ 21,44%

Europe ~ 62,79%

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Canada + USA ~ 2,55%

Aviation products

vil aviation maintenance

Defence systems

1.2. Reporting the Results for 2024

Economic Indicators

T urnover (thousand lei)

Export sales (thousand lei)

Net profit (thousand lei)

Investment expenses (from our own sources), (thousand lei)

Social Indicators

Actual headcount

T otal number of training hours

Value of scholarships granted

Scholarships granted by AEROS T AR to dual education

Environmental Indicators

Energy consumption*

10.490.930 KWh - purchased

+ 2.395.678,5 KWh – produced

79% of the total produced

9.814.667 KWh - purchased

+ 2.375.889 KWh – produced

969,074 tons CO

90% of the total produced

T arget emissions 1*

T arget emissions 2

reported to the current year’s turnover

10 | A E R O S T A R S . A .

Economic Indicators

Sales by lines of business (thousand lei)

Manufacture of aeronautical products

Commercial aircraft maintenance

Defence systems

Other products and services

Economic Indicators

Sales by Markets (%)

Economic Indicators

Investments (thousand lei)

Development expenses (thousands of lei)

Replacement expenses (thousands of lei)

CONSORTIUMS AND AFFILI A TIONS

A W ARDS OB T AINED IN THE REPORTING YEAR

2. In the D2P-DE T AIL P ARTS P ARNER analysis made by the AIRBUS COM P ANY for all its suppliers,

our company is nominated as a "CHALLENGER" P ARTNER/SUPLIER” for performance, qualit y ,

on-time deliver y .

AEROS T AR HAS FOUNDED:

A CENTER for the assessment of PROFESSIONAL COMPETENCIES acquired by other non-formal

We are authorized to organize qualification courses in four specific trades within the aviation

WE H A VE THE BEST ASSESSMENT PROCESSES!

WE CERTIFY YOUR COMPETENCE!

11 | A E R O S T A R S . A .

REACH consortiums with uses in aviation and

Local Social Partnership Development Committee

Regional Consortium for Dual Education and

Sustainable Development Bacău

Regional Social Partnership Development Committee

"Education Cluster for Sustainable

Development" Association (C-EDD) Bacău

County Employees ’ Association of SMEs (PJIMM)

The Social Dialogue Commission attached to the

Prefect’s Institution of Bacău County

Aeronautical Companies Association of Romania

Local Social Partnership Development

Committee (CLDSP) Bacău

RO-NANDTB - National Aerospace Association for

Non-Destructive T esting in Romania, in which

AEROS T AR is a founding member

1. At national level, according to the N A TIONAL TOP OF THE COM P ANIES compiled by the

ROMANIAN CHAMBER OF COMMERCE AND INDUSTR Y , 31st edition 2024 , AEROS T AR ranks 1st

in the industr y , in the category of very large enterprises, with the field of activity manufacture of

aircraft and spacecraft.

COMMUNITY ACTIONS CARRIED OUT BY OUR COM P ANY IN 2024:

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Donation of equipment and teaching equipment for high schools, colleges and higher

education institutions with a technical profile, including: the T echnical College "N. V .

Karpen" Bacău, T echnical College "Mihail Sturdza" Iasi, High School of Transport and

Construction Iasi, Faculty of Aerospace Engineering Bucharest;

Providing practical training and sponsorship for devices and materials for the laboratory

tests at the " V asile Alecsandri" University Bacău;

Support for organizing the meeting "Romanian Alliance of the Universities of Science and

T echnology" (ARUST), organized by the "Gheorghe Asachi" University Foundation Iasi.

Sponsorship for the sixth edition of the "Ion Ion Ionescu de la Brad" Regional Contest on

Economic Themes, organized by the " V asile Alecsandri" University";

Signing and maintaining partnership agreements with 7 technical universities in the country:

Bucharest, Iași, Braso v , Craiova, Galați, Suceava and Bacău, as well as with 6 technological

high schools or technical colleges in Bacău and Iași, which allow students and their pupils to

do internships in our compan y , and at the end of their studies to be given priority for

employment in the company;

Allowing students from all 7 universities to take their Bachelor’s or Master’s dissertation

exams on topics provided by our compan y , for which we support the documenting and

drawing up of the corresponding papers.

12 | A E R O S T A R S . A .

PRODUCT QUALIT Y AND CONTINUOUS DEVELOPMENT

W e focus on our customers and end-users through product quality and on-time deliver y ,

combining these efforts with continuous development to ensure that we meet the expectations of

both our customers and all our stakeholders.

SYSTEM CERTIFIC A TIONS

The management system implemented in AEROS T AR is certified in terms of quality - to the

requirements of EN 9100/ AS 9100, SR EN ISO/ EN ISO 9001 and to the requirements of the N A TO

quality assurance publications AQAP 2110 and AQAP 2210, in terms of environment - to the

requirements of SR EN ISO/ EN ISO 14001 and in terms of occupational health and safety - to the

requirements of SR EN ISO/ EN ISO 45001.

AUTHORIZ A TIONS

1. AEROS T AR holds the authorization certificate (issued by the Romanian Civil A viation Authority

(AACR) ) a sa manufacturin g organizatio n tha t complie s wit h th e requirement s o f Regulatio n (EU )- Part

21, Sectio n A, Subpart G, being authorized to manufacture products, parts and equipment related to the

scope of authorization.

2. AEROS T AR holds a certificate of authorization (issued by the Romanian Civil A viation Authority

(AACR)) as a maintenance organization complying with the requirements of Regulation (EU) - Part

145, Sectio n A, Part 145, authorized to perform maintenance on products, parts and appliances specified in

the scope of authorization.

AEROS T AR as a maintenance organization is also approved by the Civil A viation Authorities of UK,

Turke y , Morocco, USA and Bermuda.

3. AEROS T AR as a design organization in accordance with the requirements of Regulation (EU) - Part

21, Section A, Subpart J is approved by the European A viation Safety Agency (EASA).

4. AEROS T AR holds the Military Approval Certificate as a design organization entitled to perform

design activities under RMAR 21 and within the scope of approval.

5. As of 2021, AEROS T AR holds a Military Certificate of Approval as a RMAR 145 approved

maintenance organization. In 2023 the scope of authorization was extended with maintenance work for

Black Hawk S-70 helicopters.

6. In 2022, the National Military A viation Authority authorized AEROS T AR as a military aircraft

maintenance training organization in accordance with RMAR 147, Section A, an organization

authorized to conduct training, examinations in the authorized scope and to issue certificates of

acknowledgement to graduates.

7. AEROS T AR holds an authorization certificate - granted by the Romanian Civil A viation Authority

(AACR) - for specialized testing in the field of civil aeronautics.

8. Since 202 0 AEROS T AR holds the authorization - granted by the Nationa l Aerospac e Association for

NDT (RO-NANDTB) - for the Training and Examination Centre for NDT personnel in the field of

aeronautics, for the methods of non-destructive testing with penetrating radiation, ultrasound, eddy

current, penetrating liquid, magnetic particle, infrared radiation, defined in the scope of authorization.

13 | A E R O S T A R S . A .

ACCREDI TA TIONS

AEROS T AR holds accreditations - awarded by the National Aerospace and Defence

Contractors Accreditation Program (NADCAP) - for non-destructive testing, chemical

processes, heat treatment, heat treatment, shot peening and welding processes.

AEROS T AR’s metrology laboratory is accredited by RENAR Accreditation Association - for

calibrations in the accredited field.

14 | A E R O S T A R S . A .

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

The sustainability information presented in this report reflects the company’s commitment,

values and goals, established for a sustainable business and for balancing the expectations of

our shareholders with the needs and concerns of our employees, members of our community

and all stakeholders.

W e believe that by acting responsibly we will contribute to lasting economic success. By

pursuing sustainable development, we are moving towards a more secure future.

W e are guided by our responsibility for sustainable development, we are consistent in applying

the best industry practices and, in line with the practices of our business partners, we

transparently provide information, explanations and data in these categories of financial and

non-financial information.

Customer satisfaction, complete safety for the users of our products and services, continuous

improvement and increased environmental performance are the principles by which we guide

ourselves in our business. Our sustainability objectives, correlated with the business

environment and global developments, are embedded in the company’s overall long-term

AEROS T AR’s corporate governance structures are organized on four levels:

Shareholders - General Meeting of Shareholders

Board of Directors Audit

Committee Executive

General Meeting of Shareholders

The procedure for organizing and conducting the general meetings of shareholders is published

on the website ww w .aerosta r .ro, in the Investor Relations section, in order to ensure equal

treatment and the full and fair exercise of the rights of the shareholders. The company provides

them with all relevant information on the General Meetings of Shareholders and on the

decisions adopted by them, both through the regulated channels of communication (national

newspapers, reports to the ASF and BVB) and in the special Investor Relations section on its

website, which is easily identifiable and accessible.

AEROS T AR uses its best efforts, in compliance with the requirements of the relevant

legislation, to facilitate the participation of its shareholders in the proceedings of the General

Meetings, as well as the full exercise of their rights. Shareholders may attend and vote in person at

the General Meeting, but they may also vote by proxy or by correspondence.

The General Meetings of Shareholders were held in full compliance with the provisions of Law

31/1990 on Companies, Law 24/2017 on issuers of financial instruments and market operations

and the regulations issued by the applicable AS F , as well as any other incidental legal norm.

15 | A E R O S T A R S . A .

In 2024, as in previous years, when distributing profits, the company was equally mindful of

distributing dividends to shareholders and allocating resources for the long-term development of

Board of Directors

I n AEROS T AR S.A., the Board of Directors determines the strategic orientation and ensures its

implementation. At the same time, the Board of Directors is responsible for ensuring

compliance with all applicable legal provisions, its own internal regulations, as well as for

adequate risk management and control.

In July 2024, the term of office of the members of the Board of Directors of AEROS T AR S.A.

expired, so on 4 July 2024, a new Board of Directors was elected at the General Meeting of

Shareholders held on that date, for a period of four years. The election was conducted by secret

ballot, with the duration of the new 4-year term of office starting on July 11, 2024 until July 10,

Thus, as of 11.07.2024, the new Board of Directors o f AEROS T AR has the following structure:

During 2024, AEROS T AR’s Board of Directors was composed of five directors, two of whom

hold executive positions within the company and three of whom are non-executive members.

Responsibilities of the Board of Directors

The Board of Directors acts in accordance with the Constitutive Deed and the Rules of

Procedure of the Board of Directors. The Board convenes at least once every three months or

whenever required by the circumstances. The agenda of the meetings shall respect the role and

duties of the Board in accordance with the Law and the Constitution.

The Board of Directors is responsible for setting the company’s major operations and

development directions, including those related to sustainability aspects. It approves the

Sustainability Report and delegates to the executive management the fulfilment of

sustainability objectives and targets and ensures close monitoring of this activit y .

The Board is also responsible for the accounting and financial management system, as well as

the income and expenditure budget, and adopts the financial plan for the current yea r .

16 | A E R O S T A R S . A .

The Board of Directors has 5 members

Aviation Engineer

FILIP ALEXANDRU

TONCEA RADU-TUDOR

Aviation Engineer

Aviation Engineer

DOROȘ LIVIU-CLAUDIU

Executive Management

AEROS T AR is administered in a unitary system, with the executive management of the

company delegated to the General Manager and the CEO.

In relation to the organizational structure and the management system o f AEROS T AR S.A., the

management structure at the operational level ensures the management of activities in a

divisional type of organization, based on management centres in the production, auxiliary and

functional activities.

The executive management is ensured by the CEO and the Financial Directo r .

The management structure at the executive-operational level is completed by the other

Divisional and Directorate Managers.

During the year 2024, some changes occurred in the executive management, namely the

replacement of the Chief Executive Officer of the compan y , as of 01.03.2024, and, at the level of

the extended management team, on the same date, a change of the Director of the Human

Resources Department as well as the reorganization of this department into the Legal and

Human Resources Department.

Thus, the updated management structure is composed of:

The direct participation of the executive management in the company’s share capital is less than

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

Audit Committee

Pursuant to the provisions of the Corporate Governance Code corroborated with the provisions of

Law no. 162/2017, an independent audit committee has been established consisting of two

members appointed by the General Meeting of Shareholders held on July 04, 2024.

The duties of the Independen t Audit Committee are those set out in its own Rules of Operation,

approved by the Board of Directors, supplemented by the provisions of Law no. 162/2017 and

EU Regulation no. 537/2014, which can also be found on ww w .aerosta r .ro in the Investor

Relations section.

Since 2018, an Audit Committee has been operating in AEROS T AR in accordance with the

provisions of Law no. 162/2017 on the statutory audit of annual financial statements and

17 | A E R O S T A R S . A .

FILIP ALEXANDRU

The Executive Management has 9 members

Chief Executive Officer

POLITICAL AFFILI A TION

Financial-Accounting Director

ROGOZ V ASILE LAURENȚIU

Director of Quality Directorate

Director of Legal and Human Resources Directorate

Director of Logistics Division

Director of Defence Systems Division

IOSIPESCU ȘERBAN

Director of Aeronautical Products Division

VELEȘCU IOAN-DAN

Director of MRO Civil Aviation Division

BRANCHE CĂTĂLIN BOGDAN

Director of Utilities and Infrastructure Division

consolidated financial statements. The Audit Committee meets on a regular basis, at least four

times a year, as well as exceptionall y , as necessar y .

1.2. Information provided to the company’s administrative, management and supervisory

bodies and sustainability aspects addressed by them

I n orde r t o kee p u p t o dat e o n al l essentia l compan y data , th e Bo D maintain sa permanen t liaison

wit h th e executiv e an d operationa l management . A t th e sam e time , give n th e direc t participation

of two of the members of the BoD in the executive management, the administration has

unrestricted and direct access to the company’s information.

As a result, the BoD receives regular ad-hoc reports that focus on key areas of the financial and

operational aspects, as well as on occupational health and safet y , human resources, purchases,

investments, research and development, community relations and philanthropic aspects.

This wa y , the BoD takes into account impacts, risks and opportunities when supervising the

company’s strategy and makes direct decisions on major transactions and its risk management

1.3. Integrating sustainability performance into incentive schemes

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

key principles:

(a) It should contribute to the successful implementation of AEROS T AR S.A. strategy in the

short, medium and long term;

(b) It should ensure the proper involvement of the shareholders in setting the remuneration

policy and monitoring its implementation;

(c) It should contribute to promoting the mission and values of AEROS T AR S.A.;

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

(e) It should provide the necessary and flexible instruments to remunerate the Directors in

accordance with their responsibilities, competencies and performance;

(f) It should ensure compliance with the applicable legal requirements.

For the activity carried out within the BoD, each Director is entitled to a fixed monthly

remuneration, the net amount of which is approved by AGOA upon appointment to office and

thereafter annually upon approval of the income and expenditure budget.

The net monthly fixed remuneration approved by the General Meeting of Shareholders for the

year 2024 is EUR 1.000 for each member of the Board of Directors.

As such, there are no incentive schemes or remuneration policies related to sustainability

aspects in place for the members of the Board of Directors.

The Remuneration Policy is published on the website of AEROS T AR S.A. (ww w .aerosta r .ro)

and will remain available to the general public for the entire duration of applicability of the

Remuneration Polic y .

18 | A E R O S T A R S . A .

1.4. Risk management and internal controls related to sustainability reporting

In AEROS T AR, the management of risks, impacts and opportunities is a continuous process

that is carried out to assess risks and to address them, to identify new risks that have not

occurred previousl y , to reassess risks that persist as well as to assess opportunities for growth

The risks presented in Chapter I.4. " Management of Impacts, Risks and Opportunities" of this

report, which are detailed at the level of each thematic standard, are the result of the double

materiality analysis, as required by the ESRS/CSDR.

For better understanding, we present below the structure of AEROS T AR’s internal control

system and its functions.

Management accounting

Budgetary control

Management accounting

In AEROS T AR there is a department which fulfils the tasks of management accounting. It

ensures the inventory of all assets, liabilities and equity items on the company’s books.

Throughout this period, the inventory activity has been carried out in compliance with the legal

provisions and regulations. The results of the inventories were recorded in the company’s

accounts. There were no significant differences compared to the bookkeeping records.

Budgetary control

Budgetary control is carried out by budget officers. In terms of budgets, the company is

organized into:

1) profit centres

2) cost centres

Budget s ar e define d i n th e compan y base d o n activit y program s correspondin g t o th e company’s

Budget control ensures:

that each budgeted indicator is within forecasted values

the substantiation of any corrective actions.

On a quarterly basis, both the profit and the cost centres report to the executive management on

their compliance with the budgetary provisions and on the required, timel y , efficient, effective

and legal nature of the expenses the company incurs.

In AEROS T AR the concept of controlling has been implemented and is continually developed as

a superior stage of budgetary control. Controlling also ensures alignment with the company’s

mission and strategic objectives.

19 | A E R O S T A R S . A .

The company has an Internal Audit Department with members registered with the Chamber of

Financia l Auditors of Romania . AEROS T AR has organized the internal audit activity according

to the la w , in a separate compartment in the organizational structure, according to the

organizational chart.

The Internal Audit Compartment reports directly to the Board of Directors and performs an

independent and objective assurance and consulting activity designed to evaluate and improve

the company’s operations.

The internal audit activity is carried out on the basis of the Annual Activity Programme

approved by the Board of Directors.

The internal audit missions have confirmed the positive impact of the internal audit activity on

the activity carried out within AEROS T AR..

The Interna l Audit Compartment regularly submits internal audit reports at the meetings of the

Board of Directors and to the Audit Committee.

1.5. AEROS T AR Shareholders

The significant shareholders o f AEROS T AR S.A. are IAROM S.A. Bucharest and EVERGENT

Investments S.A. Bacău. The summarized shareholder structure of the company on December

31, 2024 is as follows

Evergent Investments S.A.

Other shareholders

Number of shares

Relations with shareholders and the capital market

In its relationship with shareholders, Aerostar has taken into account the protection and

assurance of shareholders’ rights, namely:

to participate in General Meetings directly or by proxy - by providing them with special

proxies, voting ballots by correspondence, other useful information;

to be treated fairl y , regardless of their holdings;

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

In relation to the capital market , Aerostar has fulfilled all the reporting obligations arising from

the legal provisions by publishing the mandatory continuous and periodic reports in the

electronic system of the Financial Supervisory Authority and the Stock Exchange, on the

company’s website and through press releases.

20 | A E R O S T A R S . A .

In accordance with the provisions of the Corporate Governance Code, continuous and periodic

information has been disseminated simultaneously in both Romanian and English.

Shareholders can obtain information about Aerostar and main events on the website

ww w .aerosta r .ro.

Also available for download are the annual and half-yearly reports for the last ten years and

quarterly reports for the last five years, current reports as well as other useful information for

There are no changes in the shareholders’ rights . There have been no major transactions entered

into by the company with persons with whom it acts concertedly or in which such persons were

involved during the relevant time period.

Aspects concerning the company’s capital and management

There were no changes affecting the capital and management of Aerostar S.A. The

Company was not unable to meet its financial obligations during this period.

AEROS T AR’s relationship with the parent compan y , other shareholders and with companies

in which it has shareholdings.

Aerostar is a subsidiary of IAROM S.A. and therefore, the parent company consolidating the

group’s financial statements is IAROM S.A., with the unique identification code 1555301 and

the registered office in Bucharest, 39 Aerogării Boulevard. The consolidated financial

statements for the financial year 2024 have been submitted to the A.N.A. F . under registration

no. 770692053-2023/22.08.2024

The Parent Company will prepare and publish a set of consolidated financial statements in

accordance with the applicable accounting regulations for the fiscal year ending 12/31/2024.

21 | A E R O S T A R S . A .

description

description

FOAR SRL Bacău

AIRPRO CONSU L T

AEROS T AR S.A. BACĂU

15,1487% 71,4990%

Other natural and legal persons,

EVERGENT Investments

Affiliated parties

As of December 31, 2024 AEROS T AR S.A.’s shareholdings in other companies are as follows:

description

description

description

description

description

description

description

description

description

Name of branch/

Financial information for the

latest financial year (year 2023) for

which the financial statements of

affiliated companies have been

(thousand (thousand

10 12.863 771 556

TO T AL 14 13.190 1.321 675

AEROS T AR’s shareholdings in these companies are recorded at cost.

Both companies in which AEROS T AR still owns shareholdings are registered in Romania. The

transactions with the affiliated parties are disclosed in the Financial Statements in Note 26.

22 | A E R O S T A R S . A .

Corporate Governance Compliance T able 2024

Reaso n fo r non-compliance

Three out of five Board members are non-executive. The Board of Directors

does not include an independent member and is voted in this structure by the

General Meeting of Shareholders.

The company has constituted an independent audit committee in accordance with

Article 65 of Law no. 162/2017

The members of the audit committee are independent persons elected by the

AG A and have competencies in accounting and statutory auditing.

All AG A decisions on the remuneration of the BoD members have been

published. There i s now a separate section in the BoD Rules.

The information in this section i s available on request but i s not published on the

company’s website.

23 | A E R O S T A R S . A .

2.1. Strateg y , Business Model and V alue Chain

AEROS T AR’s strategy involves increased commitment to all sustainability aspects.

In 2024, we assessed our strategy in light of the new legislative reporting rules, taking into

account the proposed commitments, the strategic needs of our business as well as the dynamics of

the aviation industr y .

W e therefore aim to align with both the global requirements and the global trend, by

channelling our efforts on achieving the main goal of increasing sustainability by linking

profitability with accountabilit y , increasing value in the short, medium and long term and thus

enhancing the company’s performance.

Through the development objectives we aim to achieve the targets in the multi-year planning

derived from the company’s strateg y , giving particular importance to the environmental, social

and economic aspects and focusing on the efforts needed to minimize the negative impacts and to

support and promote the positive ones.

Relevant data and performance indicators in line with the company’s best practices, procedures

and policies have been reported in the annual and periodic reports, following the guidelines of

the legislation in force.

Priority objectives set at the top management level form the basis for the development of the

annual plans by areas of activit y . The annual activity plans are dynamic and, depending on the

context, adapt to the requirements and expectations of the stakeholders.

In setting our company’s objectives for the year 2024 we have taken into account the selective

growth strategy as well as the company’s mission to maintain our status as:

- Nationwide first-tier provider of maintenance, integrations and upgrades for defence

- Regional top provider of MRO services for commercial aviation,

- Significant supplier in globalized production chains for airframe and landing gear

system parts and subassemblies.

Our medium and long-term strategy focuses on:

Increasing performance through continuous improvement of activities, processes,

products and services;

Continuous compliance with the environmental protection rules, all quality

requirements and national and international regulations;

Professional development of employees in the spirit of integrit y , innovation and

initiative and maintaining a thriving social dialogue;

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

Increasing efficiency as well as reducing costs;

Maintaining the status of top employer;

Satisfying customer requirements and guaranteeing full safety for our employees;

Creating value for the community and strengthening collaborative relationships.

24 | A E R O S T A R S . A .

SUS T AINABILITY

INVOLVEMENT IN THE

COMMUNITY AND ITS

OUR CUSTOMERS’

Reducing the atmospheric

emissions of greenhouse gases

and emissions of volatile organic

Reducing the environmental impact

by improving waste recovery and

educating all employees in the spirit

of minimizing waste generation in

order to improve the environmental

Partially supplying the energy

needed for the company’s

processes from green sources

through our own photovoltaic parks

We respect the environment,

nature and natural resources!

Engaging our employees in

professional development and

supporting an inclusive culture in

which every employee can realize

their full potential and contribute with

our help, thus ensuring the evolution

of tomorrow’s professions;

Improving the quality of life at work,

ensuring the health and safety of our

employee s an d maintainin ga thriving

social dialogue;

Promoting a culture of safety and

health at work.

Continued training and professional

development programs

We respect, support and guarantee

equal, non-discriminatory treatment

throug h equa l opportunitie s fo r al l our

Constant dialogue with the local

communities in the spirit of our

desideratum to influence the

community in a positive way;

Developing partnerships to

attract young people for

internships and work

Continued scholarship programs

for dual education pupils

Improved professional and social

Action for the benefit of the

Developing partnerships so that

we may represent a reference

point for our customers;

Strengthening our position as a

strategic player in the civil and

military aviation industry and

creating sustainable added

Transparent practices based on

integrity and business ethics

Focus on customers and end-

We uphold the highest standard

of professional ethics!

For more details, see chapter

Environmental Information

For more details, see chapter

Social information

Company’s own workforce - ESRS S1

For more details, see chapter

Social Information

Affected communities - ESRS S3

For more details, see chapter

Social Information

End-users-ESRS S4

25 | A E R O S T A R S . A .

Committed to a sustainable future, our top management has adopted an ambitious strategy and an

integrated business model, based on a systemic process approach and RISK-based thinking.

The company’s management policy is focused on maintaining a solid capital base for continuous

development in the context of the global market and competitive advantage through qualit y ,

capabilities, high level technologies to support sustainable and organized development and thereby

achieve strategic objectives.

The company’s business model has not been changed as a result of the international context, but the

way of conducting activities has been adapted in relation to the specific nature of the flows of activities.

W e fully comply with the applicable national and international legislation, acting constantl y ,

intensively and transparently to pursue growth opportunities and secure access to new programs in the

field of aviation and defence.

The analysis of our value chain was carried out from the point of view of the aspects that can generate

material impacts that our company’s activities can bring to the value chain or to our stakeholders.

Within the compan y , the value chain is seen as an integrated and strategic process, a continuous flow of

activities and work processes aimed not only at operational efficienc y , but also at reducing

environmental impacts and increasing social well-being. The downstream value chain includes both

domestic and external suppliers. The upstream value chain includes our customers and end-users.

T aking into account the company’s field of activit y , we collaborate with a wide range of suppliers of

products and services, both in the civil and military aviation field, as well as with suppliers of products

and services in the general industry field, suppliers that operate both in Romania and abroad.

The "Supplier Code of Conduct" clearly expresses the expectations we have of our suppliers in

accordance with our own values, principles and ethical standards. Supplier commitments are

constantly communicated and can be found on AEROS T AR’s website at

https://ww w .aerosta r .ro/suppliers.

In terms of social aspects, we continue to focus on increasing the positive impacts for the benefit of the

community by creating a responsible value chain.

No cases of non-compliance with the UN Guiding Principles on Business and Human Rights, the ILO

Declaration on Fundamental Principles and Rights at W ork or the OECD Guidelines for Multinational

Enterprises Involving Affected Communities have been reported in AEROS T AR’s operations or the

operations of its upstream or downstream value chain partners.

At the same time, there are no incidents of business-related discrimination on the grounds of gender,

race or ethnic origin, nationalit y , religion, disabilit y , age, sexual orientation or other relevant forms of

discrimination or incidents of harassment.

26 | A E R O S T A R S . A .

Collaboration and open communication with all partners are fundamental to building trust and

developing long-term sustainable initiatives.

2.2. Stakeholders’ interests and views

AEROS T AR S.A. is an organization with a significant presence both for the environment and the place

where we operate, as well as in the public image and consciousness of the local communit y , which

perceives us as a prestigious enterprise, a top employer and an important player in the economic

Through our organizational values, we promote responsible management, which aims to achieve the

defined objectives without negatively affecting our stakeholders. Our products and services are the

result of work that is subject to rigorous management systems aligned to international standards and for

which we have certificates of authorization for: quality management according to ISO 9001 integrated

with environmental management according to ISO 14001, as well as occupational health and safety

management according to ISO 45001. W e have also implemented the standard for safety management. In

order to implement and maintain management systems according to these standards, we have

27 | A E R O S T A R S . A .

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Human Resource Management

Employees’ well-being

Employees’ health and safety

Education and training

Certification Centre

Manufacture of Aeronautical Products

Civil Aviation MRO Services Bacău

Civil Aviation MRO Services Iasi

Military Aviation MRO Services

Procurement/ Purchasing/Logistics

Inbound/outbound logistics activities

Customers/End-users

Companies in the civil and military aircraft

manufacturing chain

AEROS T AR V alue Chain

developed system procedures, we set objectives annuall y , draw up specific action plans and carry out

the planned actions to achieve our objectives.

Our company is aware that at different points in time and depending on the development of contextual

aspects, the stakeholders’ requirements and expectations have different relevance to the company’s

functions and subsystems. The monitoring and analysis of stakeholder information is carried out

systematically and the results of the analysis serve as the basis for the annual update of the company’s 5-

year Development Strateg y .

Our company has included in its Rules of Organization and Functioning both the relevant

organizational contextual aspects as well as the interests and expectations of our stakeholders,

identified in relation to the shared interests of: our customers, shareholders, suppliers, employees,

certification bodies, technical and regulatory authorities, local communit y .

Moreover, given their particular importance in providing the most important resource - the human

resource, the educational institutions, in fact assimilated to the communities, are considered as distinct

stakeholders, namely: the pupil communit y , the student communit y , the teaching staff community and

the scientist communit y .

The AEROS T AR policies, code of conduct and ethics and other types of information are

communicated to the stakeholders through external or internal channels, appropriate for the level of

relevance, interest (high/medium/low) and the category of audience to which they are addressed.

In the following table we present our company’s stakeholder map, the type of interaction, the

communication with them and the level of interest.

28 | A E R O S T A R S . A .

29 | A E R O S T A R S . A .

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LEVEL OF INTEREST

(LOW, MEDIUM, HIGH)

TYPE OF INFORMA TION/COMMUNIC A TION/INTERACTION

Specific dialogues

Regular reports, briefings and presentations

General meetings of shareholders

Investor conferences

Meetings/Debates

Company’s website

Stock exchange reports

Official addresses

REPRESENT A TIVES

Specific dialogues

Stock exchange reports

Company’s website

Internal online platform of the company

Providing information through the company’s biannual magazine

Communicating through the company’s trade union organization;

Providing information via the company’s Electronic System

Direct meetings and face-to-face interactions; trainings on specific topics

Written internal communications

Communications via radio station

Posters on general display panel and notice boards

Specific actions in accordance with the hierarchical levels

Joint projects with partners from research institutes

Sponsorships and donations

Support for cultural and sports activities

Periodic briefings, KPI analysis, audits, authorizations

Conference calls, e-mail/fax

Social media (Facebook, LinkedIn, Instagram)

Meetings at trade fairs

Company website

Meetings at trade fairs

Responsible marketing and sales practices

Trial COMMUNITY

Social media (Facebook, LinkedIn, Instagram)

Sponsorships and donations

Events organized by the community

30 | A E R O S T A R S . A .

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LEVEL OF INTEREST

(LOW, MEDIUM, HIGH)

TYPE OF INFORMA TION/COMMUNIC A TION/INTERACTION

Specific dialogues, teleconferences, e-mail

Supplier evaluations

Periodic briefings, teleconferences, e-mail/fax

Social media (Facebook, LinkedIn, Instagram)

Meetings at trade fairs

Company website

Specific dialogues

Periodic briefings

T eleconferences, e-mail/fax

Company website

Careers page where job vacancies are posted

Professional competency assessment centre

Social media (Facebook, LinkedIn, Instagram)

Meetings at trade fairs

Networking sessions

Conferences/Events

Regular meetings

Briefing and consultation sessions

Specific dialogues

Sponsorships for the educational process

R&D project partnerships

Direct briefings

Social media (Facebook, LinkedIn, Instagram)

Company website

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

The overall approach to the company’s processes in the light of the management systems aligned to the

relevant standards is based on the identification and assessment of risks and the management of the

potential impact arising from the assessed risk, consistently following the principle of mitigating the

level of risk and minimizing the potential negative impact, while at the same time capitalizing on the

opportunities generated by the risks through improvement measures.

The major risk of not achieving the turnover forecasted in the company’s strategy induces a risk of job

reduction through business downsizing . As a result of careful and effective management of this risk by

the compan y , jobs are in fact maintained, and in reality the impact is positive, in the sense of the

company’s contribution to the well-being of the local communit y , through the income provided to the

employees, through significant taxes and duties paid to the state budget.

Furthermore, one of the three business lines designed to ensure the attainment of the turnover foreseen in

the company’s current strategy aims at maintaining our company’s status as a supplier of defensive

aviation and ground systems for the Romanian Ministry of National Defence. Thus, AEROS T AR

contributes to the security of the territory and the population, which induces a positive impact on the

community and an opportunity for the company to maintain its image and good reputation in the field.

The risk of damage to the environment though the company’s activities has a potentially negative

impact on the people in the local community who live or work around the company’s sites (head office,

factories, workplaces). In order to minimize this potential negative impact, the company has adopted a

robust quality and environmental polic y , it has implemented and maintains an Environmental

Management System, which complies with the requirements of the SREN ISO 14001 standard and is

certified in accordance with this standard. Specific actions that lead to ensuring the effectiveness of the

environmental management system and its improvement include the assurance that the environmental

policy and objectives are compatible with the company’s strategic context and direction.

The necessary human resource, estimated for a 5-year horizon, is an important component of our

Strategy and an integral part of it. The company’s risk of failure to assure its qualified human resource

actually induces opportunities and positive impact for the local and regional communit y , as it is

expected that the workforce will be sought primarily in these communities. These considerations lead us

to support the communities’ right to education and culture and underpin our initiatives and actions to

support the development of vocational school education, as well as technical secondary and university

education in the geographical area, including dual education, thus ensuring a positive impact on the

Another significant risk that contributes to the adaptation of the business strategy to the changing

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

31 | A E R O S T A R S . A .

3. IM P AC T , RISK AND OPPOR TUNITY MANAGEMENT

3.1. Double Materiality (Significance)

Impacts, risks and opportunities related to environmental, social and governance aspects have been

identifie d an d assesse d i n lin e wit h th e ESR S standard s an d th e implementatio n guid e I G1- Materiality

The connection between the identified impacts, associated risks and opportunities is presented for each

theme/sub-theme separately in Chapter II Sustainability Statement.

For this report a joint team was assembled in 2024. This team undertook an extensive, well-

documented process of identifying relevant information related to the sustainability of our compan y ,

gathering and analysing key data, while making sure that all necessary information is properly

documented, accurately reflects our environmental and social impacts, and assessing material aspects

and financial impacts.

Thus, during these meetings the following aspects were analysed:

The actual and potential, positive and negative impacts of our own operations on people or the

environment (inside-out) through assessments based on severity and likelihood criteria;

Financial materiality - the likelihood and severity of the financial impacts related to the

identified risks, the company’s dependencies (outside-in) and the determination of financial

Additional sustainability aspects.

An aspect is material if it meets the defined criteria for impact materiality (significance), or financial

materialit y , or both. In support of these actions, we have regulated the work method through an internal

instruction, thereby reinforcing the team’s activities.

The team has paid close attention to the impacts that the company’s operational activity may generate,

but also to the associated risks and opportunities.

In AEROS T AR, the people who participated in the meeting sessions are part of the executive

management, are members of the extended management team or are representatives of the relevant

departments for each thematic topic.

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

1. Alexandru Filip - CEO

2. Doru Damaschin – Financial-Accounting Director

3. Andrei Damaschin - Chief Accounting Officer

4. Laurențiu Rogoz - Director of Quality Directorate

5. Daniel Vîrnă - Director of Quality Directorate

6. Andra Cristea - Director of Logistics Division

7. Cătălin Branche - Director of Utilities and Infrastructure Division

8. Claudia Sfîrlea - Head of Environmental Protection Office

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

10. Raluca Sofian - Head of Human Resources Office

1 1. Cătălina Costache - QA Coordinator - Purchasing Analyst

12. Răzvan Bejenaru - Legal Counsellor

13. Elena Costache - Head of Marketing and Development Service

32 | A E R O S T A R S . A .

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

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

Trends in the market in which we operate, contextual aspects, company priorities in relation to

strateg y , business model and stakeholder requirements.

Analysis of sustainability issues covered by the thematic ESRS: climate change, pollution,

water and marine resources, biodiversity and ecosystems, biodiversity and ecosystems, circular

econom y , ou r ow n workforce , valu e chai n workers , adequat e communities , consumer s an d end-

users, business conduct and value chain analysis.

Identification and analysis of other matters of interest to the company

Analysis and assessment of actual or potential material impacts (aspects) and their severit y ,

identification of risks and opportunities and potential financial effects.

Analysis of the results through final consultation.

Evaluation of the analysis, preparation of the double sustainability matrix, interpretation of

results and setting of targets.

Each aspect has been documented, according to its importance, in a working document produced for

this project. The criteria for assessing impacts and determining their materiality are based on the IG 1 -

Materiality Assessment Implementation Guide and take into account the magnitude, scope,

irremediabilit y , likelihood and severity of the impacts.

The criteria for assessing the risks and determining the materiality of the financial impacts consider

severity levels in terms of magnitude and probability levels. Financial effects refer to effects that may

affect performance, financial position, liquidit y , access to capital and cost of capital. Reputational

damage may generate financial effects.

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

W e consider this assessment to be important in the company’s strateg y , objectively analysing both our

needs and the likelihood of generating impacts through our own activities.

W e also aim to hold regular meetings throughout 2025 where, based on the current needs of the

company and cross-checked against the list of aspects presented in this report, we will make updates or

changes, as appropriate.

The table below shows the sustainability aspects that have been subject to the double materiality

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

33 | A E R O S T A R S . A .

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ESRS E1-E5 Environment

Sub-sub-theme Comments

Adaptation to climate change

Covered by the double

materiality analysis

Mitigation of climate change

Covered by the double

materiality analysis

Covered by the double

materiality analysis

Covered by the double

materiality analysis

Covered by the double

materiality analysis

Covered by the double

materiality analysis

Pollution of living organisms and food

Covered by the double

materiality analysis

Substances of concern

Covered by the double

materiality analysis

Substances of very high concern

Covered by the double

materiality analysis

Not covered by our scope of

Water resources Water consumption

Covered by the double

materiality analysis

Water and marine

Marine resources

Water sampling N/A

Discharge of water N/A

Discharge of water into oceans N/A

Extraction and use of marine resources

34 | A E R O S T A R S . A .

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ESRS E4-E5 Environment

Sub-theme Sub-sub-theme Comments

Biodiversity and

Determining factors of the

direct impact on the

biodiversity decline

Not applicable to our

organization. The activities

carried out within our

organization do not impact

protected natural areas,

vulnerable habitats or

Changing the use of land, fresh water and sea

Direct exploitation

Invasive alien species

Impacts on the status of

Size of species population

Risk of global extinction of species

Impacts on the extent and

state of ecosystems

Soil degradation

Desertification

Soil permeability

dependencies on

ecosystem services

Resource inputs,

including resource

Covered by the double

materiality analysis

Resource outflows related

to products and services

Covered by the double

materiality analysis

Waste Hazardous waste generation

Covered by the double

materiality analysis

35 | A E R O S T A R S . A .

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ESRS S1-S4 Social information

Sub-theme Sub-sub-theme

Covered by the double

materiality analysis

Covered by the double

materiality analysis

Adequate salaries

Covered by the double

materiality analysis

Social dialogue

Covered by the double

materiality analysis

Working conditions

Freedom of association, the existence of works

councils and employees’ rights to be informed,

consulted and participate

Covered by the double

materiality analysis

Collective negotiation, including the share of

employees covered by collective agreements

Covered by the double

materiality analysis

Work-life balance

Covered by the double

materiality analysis

Health and safety

Covered by the double

materiality analysis

Equal treatment and

opportunities for all

Gender equality and equal pay for equal work

work of equal value

Covered by the double

materiality analysis

Training and development of competencies

Covered by the double

materiality analysis

Employment and inclusion of people with

Covered by the double

materiality analysis

Measures against violence and harassment

in the workplace

Covered by the double

materiality analysis

Covered by the double

materiality analysis

Other work-related rights

Covered by the double

materiality analysis

Covered by the double

materiality analysis

Adequate housing

Confidentiality

Covered by the double

materiality analysis

36 | A E R O S T A R S . A .

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ESRS S2 Social information

Working conditions

Adequate salaries

Social dialogue

Covered by the double

materiality analysis

Freedom of association, including the existence of

works committees

Covered by the double

materiality analysis

Collective negotiation

Work-life balance

Health and safety

Covered by the double

materiality analysis

Equal treatment and

opportunities for all

Gender equality and equal pay for equal work

work of equal value

Covered by the double

materiality analysis

Training and development of competencies

Employment and inclusion of people with

Measures to combat violence and harassment

in the workplace

Covered by the double

materiality analysis

Other work-related rights

Covered by the double

materiality analysis

Covered by the double

materiality analysis

Adequate housing

Water and sanitation

Covered by the double

materiality analysis

Confidentiality

Covered by the double

materiality analysis

37 | A E R O S T A R S . A .

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ESRS S3-S4 Social information

Sub-theme Sub-sub-theme

Adequate housing

Covered by the double

materiality analysis

Adequate food N/A

Economic, social and

cultural rights of

Water and sanitation

Covered by the double

materiality analysis

Land-related impacts N/A

Security impacts

Covered by the double

materiality analysis

Civil and political rights of

Freedom of expression

Covered by the double

materiality analysis

Freedom of assembly

Impact on human rights defenders

Rights of indigenous

Free, prior and informed consent

Self-determination

Cultural rights

Impacts related to

information for consumers

and/or end-users

Confidentiality

We respect the right to privacy and

freedom of expression. AEROST AR

complies with GDPR data protection

and legislation. AEROSTAR conducts

its business-to-business activities

under agreements that ensure the

confidentiality of its business partners.

Freedom of expression

Covered by the double

materiality analysis

Access to (quality) information

Covered by the double

materiality analysis

Personal safety of

consumers and/or end-

Health and safety

Covered by the double

materiality analysis

Personal security

Covered by the double

materiality analysis

Child protection

Social inclusion of

consumers and/or end-

Non-discrimination

Access to products and services

Responsible marketing practices

Covered by the double

materiality analysis

Covered by the double

materiality analysis

Covered by the double

materiality analysis

38 | A E R O S T A R S . A .

description

description

description

ESRS G1 Information on governance

Corporate culture

Covered by the double

materiality analysis

Whistleblower protection

Covered by the double

materiality analysis

Corporate culture

Political engagement and lobby activities

Covered by the double

materiality analysis

Business conduct

Covered by the double

materiality analysis

Supplier relationship management,

including payment practices

Covered by the double

materiality analysis

Corruption and bribery

Covered by the double

materiality analysis

description

description

description

description

Additional topic

Sub-theme/impact

Computer system security

Security incident

Covered by the double

materiality analysis

Covered by the double

materiality analysis

Export/import controls

Covered by the double

materiality analysis

39 | A E R O S T A R S . A .

LIST OF M A TERIAL M A TTERS AND INTERPRE TA TION OF RESU L TS

In our assessment, we analysed 25 sub-themes of the European Standard and added two additional

topics: cyber security and export/import controls.

The results of our assessment have provided a comprehensive overview of the material matters and

risks that are likely to have financial effects and could impact our business. W e have addressed these

impacts, risks and opportunities in the thematic standards covered in the sustainability statement.

W e interpret the results in close correlation with our needs, paying attention to the potential impacts that

our activities may generate, whether positive or negative. In doing so, we ensure that the decisions we

take are well-informed and balanced, taking into account both the opportunities and risks involved.

The analysis matrix revealed the following:

1. Potential negative matters with financial effects:

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

2. Real negative non-material matters

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

3. Potential negative non-material matters:

7 matters that could have a negative impact, but have no material/financial impact

4. Real positive non-material matters

18 matters that are positive, where we will implement concrete actions to maximize their impact

5. Potential positive non-material matter:

1 matter that could be positive but does not have a significant material/financial impact on the

FINANCIAL MATERIALITY

RISKS TH A T M A Y H A VE ANTICI PA TED

FINANCIAL EFFECTS

40 | A E R O S T A R S . A .

1 Product safety

2 Health and Safety

3 Circular economy

4 Cybersecurity

NON-M A TERIAL RISKS

6 Working conditions (Safe working environment)

7 V alue chain workers

POTENTIAL L Y NEG A TIVE RISKS WITHOUT IM P ACT

REAL NEG A TIVE

We produce energy from renewable sources

Substances of concern

Fair working conditions

Support for vocational high school and university education

Corporate culture

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

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

End User Domain - The safety of our products

is a priority for the company and is closely linked to our company ’ s adherence to quality standards and

continuous improvement. One of the strategic objectives of AEROS T AR is to make products and

provide services that offer full safety for our end users.

Own W orkforce Domain - Health and safety at work

are key matters for AEROS T AR. W e are committed to providing a working environment in which all

employees can perform their activities in a safe and healthy manne r . This involves implementing and

maintaining safety procedures, providing adequate training to prevent accidents and constantly

improving working conditions.

No detailed breakdown of the anticipated financial effects in monetary terms has been made for

the year 2024, and the monetary forecasted risks will have to be validated during the year 2025,

following an extensive monitoring and analysis to be carried out for the two priority areas.

We will focus our attention on these areas, by implementing specific measures to meet both the

operational requirements and the priorities dictated by the financial materialit y .

41 | A E R O S T A R S . A .

3.3. MDR-P Policies, MDR- A Actions, MDR-M Indicators, MDR-T T argets

The resources needed for risk management are allocated within the compan y , with authorities and

responsibilities for the relevant functions and levels established. The general framework for dealing

with risks relies on understanding the needs and expectations of the stakeholders in achieving the

organization’s expected results.

In our company:

Responsibilities for the quality and environmental aspects, as well as Risk Management, are

assigned/delegated to the Director of Quality and Environment.

Responsibilities for the social, personnel, occupational health and safet y , anti-discrimination

and diversity matters are assigned/delegated to the Human Resources Director; as an area of

interference, these responsibilities are correlated with:

Responsibilities on the legal compliance, human rights and anti-corruption and anti-bribery

matters, which are assigned/delegated to the Legal Office.

Responsibilities on the matters of sustainable use of resources, reduced consumption of natural

resources are assigned/delegated to the Director of the Infrastructure and Utilities Division.

Responsibilities for the compliance measures related to the avoidance of money laundering are

assigned to the Financial-Accounting Directo r .

Corporate Governance responsibilities are assigned to the General Secretariat of the compan y .

The contextual aspects and their impact over short, medium and long-time horizons, along with the

company’s priorities in relation to the stakeholders’ requirements over the same time horizons, as well as

the significant risks and opportunities related to the business model serve as the basis of the

company’s development strateg y . All of these are subject to ongoing risk analysis and risk management

measures, and are also subject to a complex and in-depth analysis at the time of the annual strategy

W e follow policies specifically aimed at identifying, assessing, managing and mitigating potentially

significant negative impacts, maintaining and enhancing positive impacts.

The risks identified in terms of qualit y , environment and safety are highlighted in the Risk Register

created in the company as a requirement for the implementation of the qualit y , environment and safety

management system . The Risk Register is used for recording the significant risks, assessed on the basis of

an internal procedure, and the actions planned to manage each risk. The status of actions is assessed

during the management reviews conducted annuall y . During these reviews, ongoing and emerging

risks and opportunities are identified, as well as the actions that need to be taken.

Process-specific dashboards, monthly reports and current summary reports are presented at the

operational meetings held during the yea r . The company monitors their progress by means of the

Quality-Environment Dashboard, which is prepared and analysed on a weekly basis.

Through specific annual plans, risk mitigation actions are established and planned so that the actual

impact of a risk that would nevertheless materialize would be below the materiality threshold. The

company’s internal audits, as well as supervisory audits carried out by the relevant authorizing

competent bodies monitor the implementation of the risk management action plans, highlighting any

non-compliances and requiring the identification of new actions to address them.

42 | A E R O S T A R S . A .

Anothe r too l w e us e i s th e Quarterl y Managemen t Repor t whic h analyse s th e turnover , productivit y and

added value ratios, resource management, quality and environmental issues, commitments and related

risks, resulting in corrective or improvement measures.

W e communicate the results of the Management Reports across the compan y , both to disseminate

positive results, so that the methods and means used to achieve those results are adapted and extended

throughout the compan y , and to identify concerted action by all profit centres in order to improve the

overall organizational performance. Improvement is planned, while the recommendations and

measures established in the management reports materialize into specific action plans. Improvement

actions are reinforced through appropriate information and communication, and general monitoring is

exercise d throug h th e interna l contro l syste m wit h th e followin g components : managemen t accounting,

budgetary controlling, managerial controlling, internal audit.

The effectiveness and suitability of this general approach are proven by the fact that in 2024

AEROS T AR S.A. did not register any negative impact of its activities on the communities in terms of

economic, social and cultural rights, civil and political rights, or other specific rights.

In order to manage the risk of environmental damage, we continuously make efforts to maintain our

Environmental Management System certification, so that from this perspective we can make sure that

the potential negative impact is not material. Our objectives in this regard are:

T o make products and provide services that offer full safety to their users;

T o increase the environmental performance.

Our environmental management system is continually monitored by its certifying authority through

surveillanc e audits , whic h identif y an y non-conformitie s an d mak e recommendation s tha t ar e close d by

a root cause analysis, followed by corrective action plans and improvement plans, as applicable.

T o manage the risk of job cuts through downsizing, as a result of a significant non-achievement of the

forecasted turnover, the company is constantly carrying out actions based on the generic cycle Plan -Do

- Check - Update, which covers both the general framework of the strategy and the current

activities. The W eekly Production Activity Dashboard is the tool by which the company’s top

management monitors results against the approved budget and planned monthly targets, identifies and

analyses in real time the risks of non-achievement of production and sales and can identify and

effective remedial measures in a timely manne r .

43 | A E R O S T A R S . A .

II. SUS T AINABILITY S TA TEMENT

4. ENVIRONMEN T AL INFORM A TION

CLIM A TE CHANGE - E1

T ransition plan for climate change mitigation

The environmental policy and the lines of action established for the implementation of the general

management objectives have led to the improvement of the company’s environmental performance

through the following actions:

Investments in safe equipment in terms of occupational health and safety and environmentally

friendly technologies, pollution prevention and environmental protection, prevention of

emissions to air/water/soil, other specific environmental risks and issues;

Accurate completion and validation of all regulated formalities related to greenhouse gas

emission certificates;

Providing part of the energy for the company’s processes from green sources, through its own

photovoltaic parks.

AEROS T AR has a dedicated department in charge of verifying the compliance with the environmental

legislation and coordinating all activities specific to Environmental Protection. AEROS T AR has

complied with the environmental legislation as well as with the requirements of the Integrated

Environmenta l Authorization , th e W ate r Managemen t Authorizatio n an d th e Greenhous e Ga s Emission

Authorization . The results of the controls conducted by the commissioners of the Bacău Environmental

Guard confirm AEROS T AR’s compliance with the applicable legal and regulatory requirements.

The activities with environmental impact are kept under control through internal operational checks

respectively by analysing the results of monitoring and measurements carried out in accordance with

the provisions of the environmental permits on air emissions, waste generation, noise generation,

A full transition plan is still under development, but our organization has always had a proactive vision

and commitment to the environment, so we have taken successive steps to optimize energy

consumption, such as:

Thermal rehabilitation of building facades with sandwich panels. About 70% of all buildings

have been rehabilitated, resulting in an area of about 24.600 square meters of sandwich panels.

Their installation improved the thermal insulation of the buildings by about 20%.

Replacing old generation boilers with modern 6 MWh boilers with higher energy efficienc y ,

with dual burners allowing operation with methane gas or diesel.

Complete replacement of the entire heat distribution network: the old external pipes have been

replaced with steel pipes pre-insulated with polyurethane foam according to SR EN 253 with

low thermal conductivit y , guaranteed to withstand temperatures up to 160°C for a minimum

period of 30 years.

The commissioning of a photovoltaic park with a total capacity of 3 MW for the production of

electricity from renewable sources. This wa y , the company has achieved the objective that

contributes to increasing sustainabilit y , reducing global warming effects and achieving climate

neutralization.

44 | A E R O S T A R S . A .

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

In the context of the industry in which we operate, we pay particular attention to managing climate

change issues through regular internal audits and annually through external audits.

By means of the double materiality assessment, AEROS T AR has analysed the adaptation to climate

change and the risk of increased utility costs due to the investment in the purchase of GHG emission

allowances to cover the deficit, with the anticipated financial effects described in E1-9.

At the same time, as a real positive impact we mention that we produce energy from renewable sources,

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

The impacts analysed by our organization are not material. However, we constantly take action to

support climate change mitigation and contribute to the sustainable growth of our business.

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

In AEROS T AR, the process of identifying and assessing material impacts, risks and opportunities is

carried out systematically through our integrated management system, which ensures a consistent

approach in all our activities. W e continually monitor, analyse data, identify and manage the relevant

environmental aspects, while aligning with the compliance requirements and our objectives for

sustainable development.

Climate change policy actions and resources

An industrial and building energy trial was carried out in 2023 to get an overview of the potential for

optimizing energy consumption, including as a basis for preparing a medium and long term strategic

decarbonization plan. In 2024, an Action Plan was approved, which includes both the

recommendations for improvement resulting from the audit and our own feasible measures to increase

energy efficienc y .

45 | A E R O S T A R S . A .

Maintaining the company’s

reputation and image in the

The impacts under analysis are not material and the risks are not financially material.

Opportunity (O)

Adaptation to climate

Risk of increased utility costs due

to investment in the purchase of

GHG emission allowances to

cover the deficit

Our activities generate

greenhouse gas emissions

within the permissible limits

We produce energy from

renewable sources

Climate change mitigation and adaptation targets

In our objectives, we aim to optimize the management of resources and reduce consumption. T o this

end, we are constantly striving to make our natural gas and electricity consumption more efficient

through long-term targets. Thus, we make sure that we use resources in a responsible and sustainable

wa y , thereby contributing to environmental protection. Our commitment to sustainability through

energy efficiency enables us to remain competitive and add value to our customers and communities.

(SCM) in relation

consumption (KWh)

in relation to turnover

Increase/decrease

compared to reference

Increase/decrease

compared to reference

Energy consumption and mix

Evolution of electricity and natural gas consumption in the period 2021 - 2024, compared to the

reference year 2017

Electricity consumption - Evolution compared Natural gas Evolution compared

kWh to the reference year consumption - SCM to the reference year

2017 14.915.197

2021 11.507.262

2024 10.490.930

Energy consumption from fossil fuels

Diesel consumption in 2021 (for the production of thermal agent) = 10.821 litres

Diesel oil consumption in 2022 (for the production of thermal agent) = 1.433 litres

Diesel consumption in 2023 (for the production of thermal agent) = 183.531 litres

Diesel consumption in 2024 (for the production of thermal agent) = 196 litres

The increase in diesel consumption for the production of thermal agent in 2021-2023 was caused by the

instability of the natural gas market due to geopolitical instabilities. The consumption of diesel oil in

2024 referred strictly to the tests that are periodically conducted at the plant.

46 | A E R O S T A R S . A .

Gross emissions of GHG categories 1, 2, 3 and total GHG emissions

Gross GHG emissions

Category 1 (Scope 1) covers fuel and natural gas consumption and represents direct carbon emissions.

In total, our Scope 1 carbon footprint in 2024 amounted to 3103 tons of CO

Categor y2 (Scop e 2 ) represent s electricit y consumption , an d include s indirec t carbo n emissions . T otal

carbon emissions for Scope 2 in 2024 amount to 12,027 tons CO

For a more detailed understanding of our impact on the environment, we are in the process of defining

and adapting our Scope 3 methodology with the final aim of obtaining a calculation including

emissions from the supply chain.

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

Evolution compared to

Evolution compared to

T otal GHG emissions:

2021 – 5897,207 t CO

2022 – 4701,22 t CO

2023 – 3952,074 t CO

2024 – 3115,027 t CO

T otal GHG emissions in relation to turnover:

total GHG emissions in metric tons of CO

---------------------------------------------------------------------------------

T otal GHG emissions in metric tons CO

equivalent = Scope 1 GHG emissions + Scope 2 GHG emissions

47 | A E R O S T A R S . A .

description

description

2021 2022 2023 2024

Scope 1 Scope 2

description

ImgDesc

description

ImgDesc

Em i S siON S C O

E m i S s i O N S 2 0 2 4

2021 – 0,0000156

2022 – 0,0000100

2023 – 0,0000078

2024 – 0,0000053

As o f August 2023, the company has opted for a renewable electricity supplier that produces 91,82% of its

electricity from renewable sources. As a result, the carbon footprint for Scope 2 is on a steep

downward trend, with CO

e/kWh emissions now around 1,3 g/kWh compared to the previous

supplier’s reported value of around 170g/kWh.

In its first year of operation, the photovoltaic park developed at our compan y , with an installed capacity of

3M W , has generated an energy production of about 2.396.000 kWh, thus contributing to increased

sustainability and reduced environmental impact.

Internal carbon pricing

AEROS T AR monitors the quarterly trading price of a GHG certificate on the EEX (European Energy

Exchange) platform).

Anticipated financial impacts from material physical and transition risks and potential climate-related

The financial effect of the decrease in the free allocation of GHG allowances will be known in the

upcoming years, meaning that AEROS T AR will have to purchase allowances to maintain compliance

with the regulated requirements . At the end of 2024, there were 9615 GHG allowances available in the

RUEGES account, and taking into account an average of 3000 retrieved allowances per year, this

reserve in the account can cover at most 3 more years. Based on the last trading price of 2024 as of

30.12.2024, this results in a financial impact of approximately 200,000 EUR for the purchase of 3000

GHG allowances.

Climate change brings both significant risks to our operations and opportunities for sustainable

development. W e understand the importance of assessing the financial impact of these factors and we

are actively working to integrate this aspect into our business strateg y .

W e anticipate that the main risks to our organization include the impact on raw material supply caused by

prolonged droughts and possible increases in energy costs due to stricter regulations. At the same time,

the transition to a green economy could result in additional expenditure to implement energy-efficient

technologies and low-emission standards.

The opportunities we anticipate include reducing long-term operational costs through the adoption of

renewable energy sources.

W e will include the results of future assessments in our annual reports to ensure transparency and to

communicate our strategic decisions.

48 | A E R O S T A R S . A .

ImgDesc

4.2. POLLUTION - E2

Material impacts, risks and opportunities

Natural resource protection is a priority for the management and development of our business.

AEROS T AR’s main goal is to minimize the effects of its activities on the environment through

pollution prevention, efficient use of resources and energ y , effective waste management and protection of

ecosystems. Our activities are regulated in terms of environmental protection and are supervised by the

controlling authorities.

All sustainability aspects specified in the thematic standard (water , air, soil pollution and substances of

concern) have been assessed through the double materiality analysis. This approach has once again

assured us that all sources of pollution are properly assessed and monitored.

W ater pollution is monitored by analysing the quality of wastewate r . For air pollution monitoring, gas

emissions are assessed and the necessary measures are planned in order to reduce/prevent them. Soil

pollution is addressed through responsible management of substances and compliance with applicable

legal requirements and those imposed by REACH.

W e aim for full transparenc y , and for this reason, although the impacts assessed are not material and the

risks analysed did not result in financial impacts, we are disclosing the most relevant aspects. W e

engage ourselves to provide clear and detailed information to demonstrate our commitment to

sustainability and accountabilit y . Even in the absence of material impacts, we believe it is essential to be

open and transparent in communicating our actions to protect the environment and mitigate the

associated risks.

AEROS T AR generates emissions in very low quantities of pollutants (below the legally permitted

limits) and as for the use of substances of very high concern, a detailed description has been given in

Pollution actions and resources

Environmental impact management is a priority in our company’s activities. In this respect, all actions

taken are aligned with the legal requirements and provisions of the applicable environmental permits.

W e implement measures for monitoring and controlling the environmental factors in accordance with

the regulations in force, while providing the necessary financial resources through an annual budget.

This budget includes the execution of regular monitoring and compliance with all legal obligations

regarding pollution mitigation and prevention.

49 | A E R O S T A R S . A .

Transition to new, more

environmentally friendly processes

Substances of very high

Non-compliance with the applicable

legal requirements and those imposed

by the REACH Regulation

The use of substances of

concern - authorized under

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

Opportunity (O)

Very low pollutant emissions

(below legal limits)

Reputational risk if legal limits are

exceeded (sanctions from

environmental authorities)

Over time many investments have been made on our company’s site to treat and prevent pollution,

two neutralization plants that deplete the wastewater and physically process the residual sludge

by dewatering-pressing,

oil separators,

a reverse osmosis plant,

upgraded fume exhaust systems for special process lines equipped with new generation

scrubbers for gas scrubbing,

enclosed, environmentally friendly paint booths with dry filter system for air purification, etc.

T argets related to pollution

AEROS T AR’s pollution objectives are in line with the requirements imposed by the legislation in

force . The main goal is to keep our activities within the legal limits set for the environmental factors by

implementing proactive monitoring, control and prevention measures. Through this approach, we

ensure that our operations comply with environmental standards, thus contributing to a minimal impact

on the environment.

Pollution of air , water and soil

The monitoring of emissions to wastewater and air emissions is carried out in compliance with the

applicable legal requirements and the requirements of the environmental permits, by an authorized

company with whic h AEROS T AR has a contract. T est reports issued for the 2024 monitoring revealed

compliance with the permissible limits for each pollutant analysed.

Al l hazardou s chemica l substance s an d preparation s use d i n AEROS T A R ar e manage d accordin g t o the

applicable regulations in force. Hazardous chemical substances and preparations subject to the

REACH regulation are used in compliance with the conditions imposed by the authorizations issued by

the European Commission.

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

V olatile organic

compared to the

V olatile Organic

Compounds emissions

relative to turnover

Evolution compared

to the reference year

The decrease in emissions of volatile compounds in recent years is due to the use of water-based paints

from the Automated Paint Line. The paints used here contain on average 3% volatile organic

compounds (VOCs), compared to a conventional solvent-based paint which contains about 60-90%

volatile organic compounds.

50 | A E R O S T A R S . A .

Soil monitoring is carried out in accordance with the Integrated Environmental Authorization and the

determined values were within the permissible limits imposed by the Integrated Environmental

Substances of concern and substances of very high concern

Our organization has always been concerned with reducing the environmental impact, paying

particular attention to special processes where hazardous substances are used. Over the years, we have

constantl y investe d i n upgradin g ou r productio n lines , lookin g fo r safe r alternative s fo r thes e processes,

even before these hazardous substances became restricted under REACH. W e mention that

AEROS T AR has made the transition from chromic anodizing to tartaric-sulphur anodizing - TS A since

2015 and in the following years to thin film sulphur anodizing (TFSA) and continues the actions of

transition to processes that do not use CrO

(chromium trioxide).

This commitment reflects our proactive vision and responsibility for the environment and our

employees’ safet y .

At the level of the European Union, concerns have arisen about the substance Cr O

trioxide), whose authorization for use was annulled by the European Court of Justice on 20.04.2023,

and we are currently in a transitional period.

This aspect has generated a major risk in terms of the continuity of some specific processes that use this

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

substance in the future.

Following the annual review on the use of substances covered by Annex XIV REACH, the following

findings were noted:

1. The use of chromium trioxide:

- The authorization decision issued at the end of 2020 for the C T ACsub consortium has been

cancelled as of April 2024, and the 2017 status of the authorization process for chromium

trioxide has been reverted back to the status of 2017 . Therefore, a new decision of the European

Commission is awaited, and meanwhile we can use chromium trioxide from the suppliers in the

original C T ACsub consortium. From the original C T ACsub consortium, two consortia were

subsequently formed which include AEROS T AR suppliers - ADCR and C T ACsub2.

AEROS T AR has collaborated with both consortia throughout this period by providing the

requested data. The review report of the ADCR consortium is accepted by ECHA and is

currently in the analysis phase. The C T ACsub2 consortium submitted a new application for

authorization. W e are tracking the authorization process of the two consortia.

- Safran LS has applied for substance authorization and AEROS T AR is co-applicant with other

suppliers of Safran LS. For the Safran application, the draft authorization decision has been

published on the ECHA website and the final decision will be published.

2. The use of other substances covered by the Annex XIV REACH:

- The provisions of the authorization decisions for the remaining chromates shall still be

- Purchases of these substances can only be made against the technical report drawn up by the

end-using facility;

- The authorization decision for sodium dichromate expired in September 2024. The ADCR

Consortium has submitted review reports for continued use after September 2024 . AEROS T AR

has provided the information requested by the consortium on the conditions of use of the

substance and may use the substance until a new decision is issued.

51 | A E R O S T A R S . A .

- In 2026, the authorization decision for strontium chromate and two other chromates contained in

primers is due to expire. Our suppliers have asked for our support in preparing the review

reports and we have provided the requested information whenever required.

AEROS T AR has made and will continue to make considerable efforts throughout this process in order to

be able to maintain production and to comply with all European regulations concerning the use of

controlled substances.

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

The environmental impacts related to air emissions, noise generation, land discharges and waste

generation are analysed every year , while also assessing the environmental aspects and determining the

material aspects.

The monitoring carried out during 2024 has confirmed the ongoing efforts made to minimize the

environmental impacts.

The measured values fall within the legally defined limits.

52 | A E R O S T A R S . A .

4.3. W A TER AND MARINE RESOURCES – E3

Actions and resources related to water and marine resources

In order to ensure a sustainable management of water resources, our company takes the following

- Continuous monitoring of water consumption to identify and reduce losses;

- Implementation of technological solutions that optimize water consumption in the operational

- Proper collection and treatment of wastewater in compliance with the applicable legal

- Promoting water reuse initiatives where possible, thus contributing to reducing the impact on

the natural resources.

These actions are supported by an annual budget allocated for monitoring, equipment maintenance and

continuous improvement of the water management infrastructure.

T argets related to water and marine resources

As part of our sustainability efforts, we have set targets related to the management of water

consumption (mc)

Evolution compared to

the reference year

T otal water consumption

in relation to turnover

(cubic meters/RON)

Evolution compared to the

Water consumption

There are no instability phenomena, active or stabilized landslides on the site and in its vicinit y , the

stratification of the terrain being uniform both horizontally and verticall y .

The terrain of the site has an almost horizontal surface, with very good general stabilit y , and the

company’s premises are equipped with sewerage networks for the collection of technological, domestic

and rainwater wastewate r . The site is not in the path of torrents and is not flood-prone.

53 | A E R O S T A R S . A .

description

Water consumption in relation to turnover

2021 2022 2023 2024

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

- removal of the cast iron pipes from the drinking water supply network and their replacement

with HDPE pipes guaranteed to operate without failures for at least 50 years;

- modernization of the control and distribution facilities for drinking water from its point of entry

into AEROS T AR, upstream to the water towers and its delivery to the internal consumers;

- replacement of defective hydrants and replacement of non-functional underground hydrants

with overground hydrants with improved functionality;

- the prompt troubleshooting of damages occurred in the drinking, industrial and recirculated

T otal water consumption in m

Drinking water Industrial water T otal consumption

2021 61.502 36.215

2022 57.854 45.855

2023 82.483 44.151

2024 71.536 42.598

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

In 2024 the risk of damage to water pipes was identified, and implicitly the risk of increased water

consumption. T o this end, measures have been taken to remove the cast iron pipes from the drinking

water supply network and replace them with HDPE pipes guaranteed to operate without failure for at

least 50 years.

54 | A E R O S T A R S . A .

4.4. BIODIVERSITY AND ECOSYSTEMS - E4

T ransition plan and consideration of biodiversity and ecosystems in strategy and business model

The site of our operations is located in an industrial area with no direct impact on the protected natural

areas or vulnerable habitats. However , we are aware of our responsibility towards the sustainable use of

natural resources and reducing the impact on the local biodiversit y .

Actions and resources related to biodiversity and ecosystems

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

our sustainability strategy by:

- Conducting a regular assessment of the impact of our activities on the local environment.

- Collaborating with environmental organizations on projects that support the regional

biodiversit y .

- Promoting a responsible supply chain, that includes sustainability criteria for the suppliers.

RESOURCE USE AND CIRCULAR ECONOMY - E5

Material impacts, risks and opportunities

As part of our sustainability strateg y , we are focused on increasing waste recovery and educating all

employees in the spirit of minimizing waste generation to improve environmental performance.

W e monitor both hazardous and non-hazardous waste, recover it and transfer it through an authorized

recycling compan y , in compliance with the legislative provisions . The management of all categories of

waste is carried out in compliance with specific legislative requirements . All waste generated from the

activities carried out within the company is stored separately in appropriate containers and

subsequently handed over to authorized operators for collection, recover y , disposal.

Actions and resources related to resource use and circular economy

During the year , monthly and periodical reports are prepared on waste management (types of waste and

quantities generated, methods of recovery) both for internal reporting within the company and for

reporting to the environmental authorities, in accordance with the requirements of the environmental

Periodicall y , internal audits are carried out to determine compliance with the applicable environmental

protection legislation, as well as external audits to supervise the Environmental Management System.

For efficient waste management, various activities are carried out, such as:

55 | A E R O S T A R S . A .

Resource inputs, included

Potential negative

Excessive use of raw

Risk (R) Opportunity (O)

Opportunity: improving efficiency from the design

phase for the cutting and routing processes so

that less waste results from processing

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

- Identification and classification of waste according to the environmental legislation in force;

- Conducting waste management audits in accordance with the applicable legislation (OUG

92/2021) and implementing programs to prevent and reduce the quantities of waste generated;

- Providing specific collection infrastructure (waste bins, dustbins, containers, retention tanks,

spaces/areas specially designated for temporary waste storage);

- Identifying and analysing the best recovery solutions available on the market for the waste

T argets related to resource use and circular economy

T otal waste generated

as a percentage of

turnover (kg/RON)

Hazardous waste

waste Recovery rate

2021 875.672 0,0023

2022 1.225.611 0,0026

2023 1.673.684 0,0033

2024 1.711.620 0,0029

Other resource outputs consist of recovered packaging, declared to the Environmental Fund

Administration on a monthly basis, mentioning that these quantities are already included in the waste

situation at the level of AEROS T AR. Thus, in 2024 the quantities generated were:

- plastic - 641 kg,

- paper/cardboard – 3.441 kg,

- metal – 1.517 kg,

- wood – 65.531 kg.

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

Legal sanctions and regulations can arise in relation to resource use: non-compliance with resource use

and waste management regulations can lead to fines and financial losses.

W aste disposal costs can have a financial impact: inefficient waste management may involve higher

taxes or additional costs for storage and recycling.

Energy efficiency represents an opportunity provided by the circular economy: the implementation of

circular solutions reduces energy consumption and the related costs, thereby contributing to long-term

56 | A E R O S T A R S . A .

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

Our policy is focused on prevention through measures intended to minimize risk. Through our quality

and environmental management system certified in accordance with the SREN ISO 140001 standard, we

have set ourselves the objective of improving environmental performance. T o this end, we have

implemented an "Accidental Pollution Prevention and Fighting Plan" at the Bacău and Iași sites as well

a sa "Pla n fo r preventin g an d reducin g th e quantitie s o f wast e generate d fro m ou r ow n activities" . A t the

same time, we carry out actions in the following areas:

permanent awareness of environmental protection among employees;

investing in environmentally friendly technologies and equipment that is safe from the point of

view of occupational health and safet y , there is a chapter in the company’s budget dedicated to

environmental expenditure;

pollution prevention and environmental protection, as regards: collection, disposal, prevention,

recycling, reuse of waste, handling and use of hazardous products and chemicals, prevention of

emissions to air/water/soil, other specific environmental risks and aspects;

partial supply of energy required for the company’s processes from green sources, through its

own parks with photovoltaic power plants. Our quality and environmental policy aims to

increase environmental performance and includes commitments related to environmental

protection, including pollution prevention and responsible use of resources.

Our organization recognizes the need to adopt effective policies for climate change mitigation and

adaptation . W e understand that these policies are essential to ensure the long-term sustainability of both

our business and the environment. Our aim is to comply with all legal regulations so that our actions and

decisions contribute to reducing our carbon footprint.

Our company is committed to managing water resources responsibl y , with a primary focus on efficient

use and reducing consumption wherever possible. W e implement measures to regularly monitor water

consumption and promote technological solutions that support the reduction of water loss and reuse of

water in internal processes. W e also make sure that wastewater discharge complies with all applicable

legal regulations, thus protecting natural resources and local ecosystems.

The circular economy and waste management represent an aspect of great importance to us, due to the

responsibility we have assumed towards the environment. T o carry out the operations of handling,

collection, segregation, baling and temporary storage of waste generated on the site, we collaborate

with companies specialized in waste management, which provide equipment and human resources to

carry out these operations.

All categories of waste are managed in compliance with specific legislative requirements. All waste

generated from the activities carried out within the company are stored separately in appropriate

containers and subsequently handed over to authorized operators for collection, recovery and disposal.

57 | A E R O S T A R S . A .

6. SOCIAL INFORM A TION

6.1. AEROS T AR’S OWN WORKFORCE

General information

Within AEROS T AR S.A., the rights and responsibilities of the employees, as set out in the Collective

Labour Agreement (CCM) and in the Rules of Organization and Functioning, are formulated in

accordance with the respect for human rights and the right to work, in line with the principles outlined in

the International Bill of Human Rights and the International Labor Organization (ILO) Declaration on

Fundamental Principles and Rights at W ork. These are reflected in the labour legislation and are

governed by the principles of consensus and good faith, which underpin the interactions in labour

Our strategic objectives have been defined taking into account the needs of our employees at different

stages of their career path, linked to the need to attract, retain, motivate and continuously develop at

Within the company operates the Legal and Human Resources Directorate with responsibilities for

ensuring the required personnel, carrying out specific evaluations, professional development,

conducting training necessary for certification, certifications, personnel authorization, OHS activities

and other activities adjacent to these functions.

Interests and views of stakeholders

AEROS T AR S.A. is constantly focused on complying with national and European legislation

regarding labour relations, relations with the social dialogue partners and informing and consulting the

employees. The relations between the employer and the employees are regulated by the Collective

Labor Agreement at the company level, as well as by the individual employment agreements of the

Our regulations provide a transparent framework that establishes a work environment in trial every

employee feels safe, engaged and valued. Our human resources policy is employee-centred, providing

employees with opportunities for advancement and access to professional development programs

tailored to the specifics of their work. Moreover , we encourage employees to communicate openly with

both their colleagues and the AEROS T AR S.A. management team, as we believe that only through

effective communication we can achieve our internal goals and those set in the relationship with our

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

The impacts, risks and opportunities associated with our own workforce are essential to ensure the

long-term sustainability of our organization.

In our double materiality analysis, we assessed:

Fai r and motivating working conditions: it is important to ensure safe working conditions for

employees to minimize the risks of accidents and occupational diseases.

58 | A E R O S T A R S . A .

Health and safety: Ensuring a safe and healthy working environment helps reduce the

employee turnover, which can improve the employees’ productivit y .

Employment rights: Respecting labour rights, including the right to adequate salaries, decent

working conditions and protection against discrimination and harassment, is essential for

maintaining a motivated and loyal workforce.

T raining and skills development : Investments in employees’ professional development and

skills training helps to improve the organization’s performance and its adaptation to the changes in

the business environment.

These aspects not only reduce risks and improve the sustainability of the organization, but also

contribute to attracting and retaining talent, improving the organization’s image and reputation, as well as

fulfilling social and ethical responsibilities.

59 | A E R O S T A R S . A .

Gender equality

for work of equal

Creating a culture of participation by

consulting the employees on the

company’s strategic decisions,

continuous feedback mechanisms

and internal surveys. Recognizing

and rewarding the employees for

innovative ideas.

Improving the company’s reputation

by increasing the motivation and

commitment towards the company of

existing employees.

Excluding or favouring candidates/employees on

the trial of gender, age, ethnicity, religion or other

personal characteristics would lead to loss of

company reputation, violation of applicable laws,

risk of litigation.

Lack of professional development opportunities

could lead to employees’ demotivation and reduced

Digitalization of processes to reduce

repetitive tasks. Integration of

artificial intelligence and automation

of operational processes. Training

and retraining to help the employees

adapt to new technologies and digital

The impacts analysed are not material and the risks do not present financial materiality .

No material risks related to fair and motivating

working conditions have been identified .

Opportunity (O)

Improving the company’s reputation

by increasing the existing

employees’ motivation and

commitment towards the company.

Social Dialogue

employees’ rights

Non-compliance with labour rights or discriminatory

practices may lead to loss of company reputation,

violation of applicable legislation, risk of litigation .

Policies related to Aerostar’s own workforce

Working conditions

Specialized compartments within the company assess the potential negative impacts associated with

their operations, including GDPR, corruption, reports/complaints/grievances, collective bargaining

and other important social issues identified as material.

All operational policies and procedures of AEROS T AR S.A. apply to the entire compan y .

Our personnel policy focuses on medium and long-term commitments for mutual benefit between the

personnel and the organization, aiming to ensure the necessary personnel in correlation with the

company’s development objectives, anticipating potential fluctuations of personnel shortages or

The main lines of action are:

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

recruiting, providing professional training through professional development plans and

maintaining qualified personnel with the necessary skills, specialized knowledge and necessary

fair opportunities by actively removing barriers so that everyone can develop and contribute to

the company’s success;

mentoring programs for various target groups that generate well-prepared, flexible teams

capable of adapting to a dynamic, changing environment;

promoting a culture of trust and respect, using constructive discussions and the exchange of

knowledge and information about the business, to strengthen solidarity within the company

60 | A E R O S T A R S . A .

Safe and healthy

work environment

Risk (R) Opportunity (O)

Non-compliance with the occupational safety and

health (SSM) regulations represents a material

potential risk for both the employees and the

company. For employees, this risk manifests through

an increased likelihood of workplace accidents and

occupational diseases, which can lead to serious

injury, disability or even loss of life. For the company,

the consequences include considerable financial

losses due to compensation and legal fines, reduced

productivity due to the absence of injured employees,

damage to reputation and the morale of remaining

employees, as well as potential litigation. In addition,

non-compliance with SSM regulations may lead to

sanctions from the relevant authorities, negatively

affecting the company’s operations and long-term

sustainability.

This risk is financially material

Our company respects and upholds the internationally recognized human rights and implements

fair rewards (meritocracy) and equal opportunities for all its employees, without discrimination and

respecting the diversity of its personnel.

Recruiting and retaining talent

W e collaborate with technical high schools specialized in trades specific to AEROS T AR S.A., as well as

with universities, aviation being a particularly attractive field for young people who aspire to excel. The

internship i n AEROS T AR S.A. is a learning journey through which each intern is guided to launch his/her

career with the help of our experts. The internship program connects the younger generation

wit h AEROS T AR S.A., giving interns the opportunity to delve deeper into the specifics of the aviation

industr y , gain exposure to our work environment and work alongside our outstanding teams. W e are

proud when graduates choose to join the AEROS T AR S.A. team, thus helping us to maintain a good

mix of generations and promoting a constant exchange of knowledge and skills.

In the school year 2023-2024 we awarded scholarships, in the amount of 434.669 lei to students from 5

dual education institutions in Bacău and Iași.

Students from the National University of Science and T echnology POLITEHNIC Bucharest, the

Faculty of Aerospace Engineering, benefited from private scholarships worth 17.200 lei during their

internship in AEROS T AR S.A. which took place between June-August 2024.

Equal treatment and opportunities for all

At AEROS T AR S.A. it is mandatory to ensure equal opportunities and equal treatment regarding the

personal development of all personnel through relationships based on responsibilit y , loyalt y , mutual

respect, freedom of expression, collaboration and professional support. W e value the professional

skills, integrity and ethical values of our employees. Our employees consistently benefit from equal

and non-discriminatory treatment in accordance with the international standards in the industry in

which we operate, while complying with the national legislation. The motivational packages are

adapted to the specific macroeconomic and microeconomic context in Romania, thus ensuring fairness

and competitiveness.

At AEROS T AR S.A., we always show respect to all parties with whom we interact. In our daily

activities, we come into contact with people of different ethnicities, cultures, religions, political beliefs,

ages, genders or disabilities.

Discrimination through the use of practices that disadvantage people of a particular gender, ethnicit y ,

age, disabilit y , in social and professional relationships is forbidden.

The Collective Labo r Agreement and the Internal Regulations contain detailed rules regarding direct or

indirect non-discrimination on the grounds of sex, sexual orientation, genetic characteristics, age,

nationalit y , race, colour, ethnicit y , religion, political belief, social origin, disabilit y , family status or

responsibilit y , trade union affiliation or activit y .

Other policies related to Aerostar’s own workforce

In our activities, we pay the utmost attention to the security of the information system, with the main

objective of ensuring a safe and trustworthy experience.

AEROS T AR S.A., is constantly concerned with ensuring a high level of security regarding the

processing of personal data in accordance with the provisions of Regulation (EU) 2016/679 of the

61 | A E R O S T A R S . A .

European Parliament and of the Council o f April 27, 2016 on the protection of individuals with regard to

the processing of personal data and on the free movement of such data, and repealing Directive

AEROS T AR S.A. complies with the legislation on child labour and forced labou r . Matters concerning

adequate housing are not the subject of the company’s activit y .

Processes for engaging with its own employees and employees’ representatives about impacts

AEROS T AR S.A. strictly complies with the international laws and treaties regulating human rights,

both within the company and in relations with its partners and collaborators. The general rights and

obligations o f AEROS T AR S.A. employees are specified in the Collective Labou r Agreement (CCM), a

document resulting from social dialogue and collective negotiations between the executive

management and the representative trade union in the compan y .

Furthermore, the company has implemented an Internal Regulation, applicable to all employees, which

sets out the rules of work organization and discipline, as well as the rights and obligations of both the

employer and the employees. Each employee has access to the content of the Collective Labour

Agreement on the company’s intranet page.

Processes to remediate negative impacts and channels for own employees to raise concerns

In addition to complying with the legislation in force, the regulations of the Corporate Governance

Code of the Bucharest Stock Exchange, our activity is guided by the Internal Regulations of

AEROS T AR S.A., which contain the rights and obligations of employees and employer, including

rules on non-discrimination and violation of human dignit y , rules concerning conflict of interest,

disciplinary procedure or the settlement of employees’ requests or complaints.

Furthermore, a Code of Conduct and Ethics has been adopted at the company level, a document that

defines the values, principles and rules that the contractual personnel AEROS T AR S.A. must observe

All employees are encouraged to report any suspicion concerning the existence of any non-

compliances, ethical or conduct violations to the email address sesizari@aerosta r .ro. Nevertheless,

beyond the existence of a formal organizational framework, reporting misconduct is an individual

responsibilit y .

T aking action on material impacts and approaches to mitigating material risks and pursuing material

opportunities related to our own workforce, as well as the effectiveness of these actions and approaches

Maintaining a safe working environment is a daily priority for our compan y . W e constantly focus on

identifying and improving the processes related to the management of safety and security in the

workplace. At the same time, we actively promote training, awareness and engagement programs for

In 2024, the activity in the field of occupational safety and health was carried out in a planned and

organized manner, aiming at identifying and preventing or eliminating, as the case may be, the risks of

occurrence of events, occupational accidents, dangerous incidents and occupational diseases at the

workplace, as well as complying with the legislative provisions in the field of occupational safety and

62 | A E R O S T A R S . A .

health, by carrying out the measures included in the Training and T esting Program in the field of

Occupational Safety and Health for 2024 no. 10187/19.12.2023 and fulfilling the duties established by

the company’s Rules of Organization and Functioning.

The human resources policy is aligned with the values of the institution, as well as with the provisions

of the Universal Declaration of Human Rights of the United Nations and the conventions of the

International Labor Organization. Within AEROS T AR S.A. all forms of forced labour , exploitation of

minors, physical or psychological abuse or harassment are forbidden.

Equal opportunities and equal treatment among our employees are fundamental pillars of the way we

conduct our daily activities, therefore discrimination based on gender , religion, nationalit y , age, sexual

orientation, disability or political affiliation is also firmly prohibited within the compan y .

The company also conducts transparent and equal opportunities recruitment processes for all

participants, regardless of gender , nationality or age. W e offer equal opportunities and equal treatment

for both our current employees and those who want to join us. The concepts of equal opportunities and

equal treatment are at the same time applied to personnel promotion processes in both executive and

production departments.

W e support and encourage diversity among our employees in both executive and production positions.

During the reporting period, out of the 1.883 employees, 553 were women and 1.330 men, the

proportion being mainly justified by the nature of the company’s business, which is predominantly

technical. Debates within AEROS T AR S.A. are held through rational arguments, and the use of

offensive language, personal attacks and insulting behaviour is prohibited.

T argets related to managing material negative impacts, promoting positive impacts as well as managing

material risks and opportunities

Specific targets related to our own employees were adopted as part of an internal process, based on the

materiality of the occupational health and safety process, including the following: ensuring the

protection of personnel during the activities carried out a t AEROS T AR S.A., compliance with the legal

requirements, maintaining the health of the personnel and compliance with the training program.

Characteristics of the company’s own workforce

ESRS S1-6; ESRS S1-7

The AEROS T AR S.A. team is mainly made up of professionals with experience, skills and solid

technical knowledge, and in addition to continuous development, it is also necessary to encourage the

transfer of knowledge from these key employees to the new employees in order to ensure the long-term

success of the compan y .

63 | A E R O S T A R S . A .

Number of employees

AEROS T AR S.A. aims to ensure a homogenous team, with a balanced structure both in terms of age

groups and gender categories, however, taking into account the operational nature of the activit y , the

number of male employees represents 71% of the total.

Number of employees by gender

Number of employees (number of persons)

Number of employees (number of

T otal Employees

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

Out of the total of 1.883 individual labour agreements active in 2024, 2 agreements are part-time and

1.881 are full-time. Full-time is considered 40 hours/week and part-time is considered 4 hours/day/20

hours/week and/or 6 hours/day/30 hours/week.

The voluntary termination rate in 2024 was 10.73%, lower than in 2023 (12.73%). The site of the

business activity o f AEROS T AR S.A. is considered to be the locations wher e AEROS T AR S.A. carries

out its activities. The head office is located in Bacău and we also have a secondary workplace in Iași.

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

Collective bargaining coverage and social dialogue

At AEROS T AR S.A., the employees can join the trade union organization - A VIAS. The unionization

rate is 57%. The " A vias" trade union is the representative trade union at the unit level, in accordance

with the provisions of Law no. 367/2022 on Social Dialogue, which is why it represents the company’s

employees during the negotiation and implementation of the Collective Labour Agreement concluded at

AEROS T AR S.A. The relations between the employer and the employees are regulated by the

Collective Labour Agreement concluded at company level, as well as by the individual labour

The Collective Labor Contract regulates both the individual and the collective labour relations as well

as the rights and obligations of the parties

signing, executing, amending, suspending and terminating the individual labour agreements;

working conditions, health and safety at work;

professional training;

working time and rest time;

employment rights and obligations, work discipline;

social protection of employees;

other rights and obligations arising from the employment relationships;

mutual recognition, rights and obligations of the employer and trade union organizations.

64 | A E R O S T A R S . A .

Annually, the trade union organization is consulted regarding the collective indexation of employees’

Number of employees covered by collective labour agreements

Number of employees who are union members

The relations between the employer and the employees are in accordance with the legal provisions in

force, and in 2024 no conflictual elements have been identified regarding these relations.

Diversity metrics

The diversity metrics applied within th e AEROS T AR S.A. structures, as part of our top management’s

commitment to increase the level of diversity at the company level, measure the proportion of young

people under 30 years of age employed and retained within the compan y , the proportion of male and

female employees and the number of employees with disabilities.

The tables for employees with distribution by gender in terms of number and as percentage at the

management level, and for the personnel structure by age categories and gender can be found in

Adequate salaries

The remuneration o f AEROS T AR S.A. personnel is regulated uniformly through the Collective Labour

Agreement (CCM). The CCM includes a hierarchy of positions and jobs within the compan y ,

establishing salary limits for each hierarchical level, depending on the complexity of the work, the

degree of technicality and professional competency required for the positions in the company’s

organizational chart.

When negotiating salaries, the requirements specified in the Job Description (attached as an appendix to

the Individual Labo r Agreement) are taken into account, as well as a comparative evaluation with the

average income levels for similar activities.

At AEROS T AR S.A. there are no employees earning below the reference level of the adequate

remuneration applicable at national level .

The Individual Labou r Agreement implemented through the CCM contains provisions consistent with

the applicable national legislation in the field and complies with the clauses stipulated by Order no.

2171/2022, regarding the approval of the Framework Model of the Individual Labour Agreement.

Social protection

Social protection of employees is essential to ensure their well-being and to maintain a stable and safe

working environment . This includes comprehensive occupational health and safety measures, ensuring

adequate working conditions. The company is committed to comply with all legal regulations

concerning social protection.

65 | A E R O S T A R S . A .

It also promotes training and awareness programs for the prevention of occupational hazards and

encourages a constant dialogue between employees and management to identify and solve social and

labour issues. This creates a climate of safety and trust, which is essential for the smooth running of

activities in such a critical and specialized secto r .

According to the Collective Labour Agreement (CCM), all AEROS T AR S.A. employees benefit from

social protection at work.

All our employees are entitled, where applicable, to maternity/paternity/parental leave in accordance

with the legislation in force and the provisions of the Collective Labou r Agreement. In 2024, 52 of our

employees benefited from parental leave (43 women and 9 men).

AEROS T AR S.A. is a responsible employer and offers its employees, in addition to the negotiated

regular salaries and bonuses, a number of benefits provided for in the Collective Labour Agreement.

Persons with disabilities

W e support the inclusion of the persons with disabilities, although the specific nature of the company’s

workplaces imposes specific health requirements for most of our employees, confirmed according to the

applicable legal requirements. The total percentage of employees with disabilities is 0.33%.

T raining and skills development metrics

W e promote a learning organizational culture in which our employees continuously enhance their

knowledge, skills and performance to achieve the company ’ s business goals. In 2024, through the

Office of Human Resource Development, training and professional development courses were initiated

and conducted for 1.554 participants.

Total number of training hours 54.230 45.066

Total number of employees 553

% employees who participated in the periodic evaluation 21%

% employees who participated in professional training 21%

Special attention is paid to the training and retaining of EASA-licensed aeronautical technical

personnel to perform and certify maintenance work on aircraft and their components.

In the field of continuous training and development, the themes of the programs cover the areas of

interest for the company’s activit y , specificall y , engineering, aviation, economics, legal, human

resources, information technology and communications and the fields of quality - environment,

occupational health and safet y , securit y , safet y , internal audit, internal control and financial

management, as well as other themes of general interest necessary for running our business.

66 | A E R O S T A R S . A .

Performance assessment

W e have an annual assessment process to support our employees and managers through structured and

systematic performance planning. The main objective of this process is to measure and improve the

employees’ performance on the job in trial to increase their potential and value to the company by

enhancing the positive performance indicators and establishing the steps required to achieve better

results for the next evaluation interval. The assessment of the employee job performance is conducted in

accordance with the internal procedure P A-A1.41 - Career Management. The assessment process is an

opportunity to provide employees with constructive feedback on their performance, both their

strengths and weaknesses.

Integrating new employees

During the integration period, new employees receive information about the tasks and responsibilities of

the position they hold, about the working environment, team, managers, departments they will

collaborate with, as well as the work procedures. In order to facilitate a smoother and more comfortable

integration of the new employees, the training themes are regulated in Appendix 1 - Framework

program for new employees’ professional adaptation and integration to the procedure P A-A1.49 -

Professional training at AEROS T AR S.A.

Health and safety metrics

In order to ensure a unitary approach and to streamline the workers’ training process at AEROS T AR

S.A., a Training/ T esting Program in the field of corporate occupational health and safety accompanied by

training themes for all phases of training in OHS (general introductory training - upon employment, on-

the-job training, periodic training and additional periodic training) have been developed and

distributed to all company departments. Training of personnel was ensured at all levels for all newly

hired employees.

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

In accordance with the provisions of Law no. 319/2006 on safety and health at work, hazard

identification actions are carried out at all workplaces within AEROS T AR S.A. and risks are assessed for

each component of the work system, namel y , the worker, the work task, the means of work/work

equipment and the work environment. These assessments are available to all workers and are included in

the annual OHS training syllabus.

Summary of work accidents occurred in the workplaces of the AEROS T AR S.A. facilities during the

reporting period:

In 2024, withi n AEROS T AR S.A. were identified, analysed and solved 8 work-related events that had

an impact on the activity carried out and on the employees, 1 of them being classified as work accident.

At the company level are developed and implemented procedures for analysing and solving work-

related events, which provide for stages of investigation of the events, dissemination of the reports

prepared following the occurrence of the event to all organizational structures, analysis and re-

assessment of the risks of occupational accidents and illness, setting a deadline for reviewing the

medical checks for the employees involved in work-related events and/or undergoing training sessions

upon the resumption of work.

67 | A E R O S T A R S . A .

No. of employees with occupational diseases and hazardous incidents

No. of accidents outside work

No. of minor accidents

No. of fatal work accidents

Number of accidents per 100.000 hours worked

Time lost due to work accidents per 100.000 work hours

During the reporting perio d AEROS T AR S . A. did not record any work accidents resulting in disabilit y ,

and the number of accidents leading to temporary incapacity for work remains lo w . Also, in 2024 no

occupational diseases were reported/ investigated/ declared.

Number of employees trained in Occupational Safety and Health

All employees undergo mandatory OHS training, upon hiring, on-the-job, periodic and additional

when necessar y . Specialized personnel with specific responsibilities in the field of OHS are trained by

participating in training programs dedicated to their responsibilities within the internal Occupational

Safety services organized at company level.

With regard to the measures adopted to prevent the occurrence of work-related events, we specify that

these measures aimed at least at the following: revising/updating the protection and prevention plans

drawn up for 2024, supplementing the training programs in the field of occupational health and safet y ,

processing the provisions of the internal regulatory framework issued in the field of occupational

health and safety at the level of all employees, intensifying controls and/or assigning additional

responsibilities for carrying out periodic checks.

AEROS T AR S.A. has not registered any disputes as a result of the labour events identified in 2024 and

it was not necessary to pay any damages as a result of their occurrence.

Work-life balance indicators

An essential condition fo r AEROS T AR S.A. to maintain its status as a top employer, in addition to the

salary component, is the existence of an extensive benefits package set in accordance with the annual

budgets. The benefits package is an important factor contributing to employee satisfaction,

commitment and loyalty to the institution.

In the case of exceptional family events, employees are entitled to paid days off, which are not included in

the annual leave. Exceptional family events and the number of paid days off are determined by la w , by

the applicable collective labour agreement or by internal regulation, according to the Labour Code.

68 | A E R O S T A R S . A .

Remuneration metrics (pay gap and total remuneration)

The remuneration of AEROS T AR S.A. personnel is regulated in a unitary manner by the Collective

Labour Agreement (CCM), which includes a hierarchization of the positions and jobs within the

compan y . It specifies salary limits for each hierarchical level, established according to the complexity of

the work, the degree of technicality and professional competency specific to the positions in the

organizational chart.

When negotiating the salar y , the requirements specified in the job description, attached to the CCM, are

taken into account, resulting in a salary whose value will be established in accordance with the limits of

the salary scale set out in the CCM.

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

Pay gap between trial and men

Pay gap between women and men at management level

Pay gap between trial and men at the execution level

Ratio of total annual remuneration

* Difference in remunera

ion between women and men=(Average gross hourly salary of male employees - Average gross hourly salary

level of female employees)/Average gross hourly salary of male employees*100

io of total annual remunera

ion = T otal annual remunera

ion ( salary & management allowance) of the highest paid employee

/Average total annual remunera

ion of employees (excluding the highest paid employee)

Incidents, complaints, issues and severe incidents related to human rights

AEROS T AR S.A. promotes equalit y , regardless of grounds, such as race, gender , sexual identit y , age,

colour, ethnic or social origin, family status, etc.

Equal opportunities and equal treatment among our employees are fundamental pillars of the way we

conduct our daily activities, therefore discrimination is firmly prohibited within AEROS T AR S.A.

69 | A E R O S T A R S . A .

FEMALE MALE TOTAL

Percentage of employees entitled to additional leave

% of employees who took maternity, paternity or parental leave

% of employees who took additional leave

Percentage of employees entitled to additional leave 100%

% of employees who took maternity, paternity or parental leave

% of employees who took additional leave

In the financial year 2024, no incidents of discrimination or harassment among the company’s

employees and no employee complaints related to occupational health and safety were recorded.

Likewise, no incidents and/or complaints related to labour or serious human rights impacts (e.g. forced

labour, human trafficking or child labour) were recorded within the company’s own workforce.

The company did not receive any significant fines, sanctions or compensation related to human rights

or the company’s own workforce in 2024.

The company recorded zero cases of non-compliance with the UNUNO

on Business and Human Rights, the OIM Declaration on Fundamental Principles and Rights at W ork

or the OCDE Guidelines for Multinational Enterprises during the reporting period.

70 | A E R O S T A R S . A .

Number of employee complaints regarding human rights

Number of incidents of human rights violations

Number of employee complaints regarding occupational health and safety(OHS)

6.2. WORKERS IN THE V ALUE CHAIN

Interests and views of stakeholders

AEROS T AR through its policies ensures that it aligns with internationally recognized instruments

relevant to the workers in the value chain.

In addition to the company’s own workforce , AEROS T AR S.A. may have value chain workers present,

as part of the company’s stakeholder representatives; among them, the following are significant:

W orkers of service providers;

W orkers of equipment suppliers providing commissioning and periodic maintenance services

W orkers representing the customer;

W orkers of control bodies or authorities (ITM, ANA F , V AMA)

Given the company’s business model, there are varying degrees of dependence on the value chain

workers, which may affect the company’s objectives in terms of ensuring the logistical conditions

necessary to deliver our products and services on time and within the required quality standards. The

level of interest of the workers in the value chain is described in the chapter "Strategy" - Stakeholders.

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

71 | A E R O S T A R S . A .

Improving the company’s Code of

Conduct and Ethics and encouraging

suppliers to adopt the same

principles in their activities through

the Supplier Code of Conduct

Equal treatment

opportunities for

Non-compliance with standards of

conduct and ethics which would result in

the loss of the company’s reputation

Opportunity (O)

Non-compliance with labour legislation

resulting in damage to the company’s

Negative potential

The company’s activity can

be negatively impacted if

suppliers’ employees’ health

and safety rights are not

respected, damaging the

company’s reputation.

The safety of service-

providing workers on the

company’s premises and

encouraging suppliers to

adopt the same principles in

their activities through the

Supplier Code of Conduct

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

Through its policies AEROS T AR ensures that:

It complies with the international regulations on the limitation of illegal exploitation of rare

minerals under inhumane conditions. AEROSTAR ensures through the adopted policy that its

suppliers are aware of and comply with these regulations.

In the General Purchasing Conditions, our company has also defined requirements for its

suppliers regarding both ethics and the observance of the labour legislation. Moreover, through

contractual requirements, we require our suppliers to comply with the labour legislation

applicable in their country. AEROSTAR works with suppliers from countries that are members

of the International Labor Organization (ILO), a United Nations Organization, which sets

international labour standards, develops policies in the field and promotes decent working

conditions for all workers.

In 2024, no social criteria were used for selecting suppliers and no negative social impacts were created

in its supply chain.

In relation to value chain workers, the following were analysed from the perspective of the double

materiality matrix:

potential negative impacts on occupational health and safet y .

When granted access to the AEROS T AR site, the workers receive specific training in occupational

health and safet y . The company also provides personal protective equipment or appropriate work

clothing for visitors. Through the contractual clauses we ensure that the employers of the value chain

workers operating on the site assume their obligations in terms of occupational health and safety for

their own personnel.

The real positive impact for value chain workers who have access to company premises

was also analysed under the sub-theme " equal treatment and equal opportunities for all " .

They benefit from similar treatment to that of the company’s own employees through the robust

policies promoted by the company in the workplace. Through our contracts with the service

providers and suppliers working on site, we ensure that they comply with the legal requirements

The risk of failure to ensure the qualified human resource by service providers and other value

chain suppliers operating at the company’s site, as well as the risk related to securit y , safety and

increased mobility of the workforce, in fact create opportunities and a positive impact for the workers

in the value chain . Thus, through our contracts with companies and organizations in the value chain, on

one hand, we ensure that workers are qualified, and on the other hand, we provide them with the

motivation to improve their professional training, while ensuring their job stability and complying with

the occupational safety and security requirements.

Policies related to value chain workers

The "Supplier Code of Conduct" is a key tool for ensuring responsible and ethical collaboration

between AEROS T AR and its suppliers. By setting clear expectations and standards of behaviour, it

ensures that all parties involved adhere to the values and principles of the organization.

If the expectations of this code are not met, the business relationship may be revised an d AEROS T AR

may propose corrective actions to the contractual terms(s).

72 | A E R O S T A R S . A .

Through policies such as "General Purchasing T erms and Conditions", "AEROS T AR Code of

Conduct", "Supplier Code of Conduct", our company ensures that it aligns with internationally

recognized instruments relevant to value chain workers.

Suppliers are encouraged to implement, in writing, their own Codes of Conduct and to transmit them in

turn to their main suppliers of goods and services.

The Code of Conduct for Suppliers addresses aspects of promoting and respecting human rights,

treating people with respect and dignity, encouraging diversity, promoting equal opportunities for all

and fostering an ethics-based culture. They must not be involved in any way in human trafficking,

forced labour or child labour exploitation.

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

In 2024, the "Supplier Code of Conduct" was also applied to the suppliers in Romania, clearly

expressing the expectations we have of our suppliers in terms of compliance with our own values,

principles and ethical standards. We encourage our employees to report any circumstances where,

through the nature of their activities, they may become aware of situations likely to indicate non-

compliance in the suppliers’ conduct.

Furthermore, 87% of the suppliers surveyed have assumed and signed the "Declaration of adherence to

the policy of ethics and conduct throughout the entire period of collaboration with AEROS T AR S.A.

Processes for engaging with value chain workers about impacts

AEROS T AR cooperates and maintains contact with the representatives of the companies to which the

value chain workers belong and with which contracts/agreements/protocols or other arrangements are

concluded, or for which there are prospects and/or interest in this respect. Collaboration and

communication are initiated by a request for quotation and continued with the tendering, negotiation,

contracting and execution of the contract, resolving any ambiguities and non-conformities, and ending

with the delivery of products or provision of services, their reception, as well as the related payments or

collections and, if necessar y , resolving warranty claims.

The operational responsibility for ensuring that this collaboration takes place rests with the CEO of the

company who, as appropriate, delegates authority or grants mandates for collaboration and

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

Our company promptly honours all orders and commercial contracts by strictly fulfilling the

obligations arising from them, in particular: timely delivery of products and services to customers, in the

required quality conditions; paying suppliers on due dates, at the agreed prices.

During the course of the relationship, any means of direct communication between the value chain

workers and our designated employees responsible for the business, as well as between their employers

and our compan y , is permitted through the formal channels of communication outlined on page 26.

Electronic mail is a common and easy way in which value chain workers are expected to express their

concerns or needs.

73 | A E R O S T A R S . A .

Any value chain worker can file a complaint if he/she is aware of any misconduct and ethical violations by

an employee or representative of our compan y , including if he/she has perceived or become aware of

any form of retaliation while working at the company ’ s site or elsewhere in connection with

activities arising from the relationship with AEROS T AR.

Employees can file complaints by any means, in writing, at the company’s registered office or by mail,

fax, e-mail, either in person or through a third-part y , expressly authorized by the person making the

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

T aking action on material impacts on value chain workers and approaches to mitigating material risks and

pursuing material opportunities related to value chain workers, as well as the effectiveness of those

AEROS T AR S.A. has initiated actions to prevent any negative impacts on the value chain workers. In

this regard, a self-assessment questionnaire on sustainability has been developed. The questionnaire

was sent to the most important suppliers and feedback was received from approximately 75% of the

suppliers. Efforts are being made to get suppliers to respond.

No serious issues or incidents concerning human rights have been reported in the upstream and

downstream value chain.

74 | A E R O S T A R S . A .

6.3. AFFECTED COMMUNITIES

Interests and views of stakeholders

W e continually work to maintain health y , mutually supportive and collaborative relationships with the

communities affected by our activit y , relative to which there is significant interdependence between

AEROS T AR’s continued supply of jobs to the community on the one hand and the supply of labour in the

local communit y , qualified in professions of interest to AEROS T AR, on the other hand. Our main

expectation is to prioritize recruiting personnel from the local communit y , while the main expectation of

the interested segment in the local community is tha t AEROS T AR will maintain attractive and well-paid

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

description

Stakeholders’ requirements, in conjunction with contextual issues and their impact over short,

medium and long-time horizons, as well as material risks or opportunities, determine the company’s

priorities and underpin its Development Strateg y . Thus, in the 2024 update of our Strateg y , the

following requirements relevant for the local and other communities have been taken into account in

the analysis of stakeholder requirements with a "high" priority level:

local priority-utilized workforce;

protected environment;

ethics and respect in business;

stability and retention of jobs,

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

75 | A E R O S T A R S . A .

Supporting vocational, secondary and

university education and cultural and sports

activities through scholarships, providing

internships for pupils and students, various

Increasing the efficiency of spending

company funds on scholarships for

pupils and students

culture (beyond

Insufficient recruitment and

retention of graduates from the

local community

description

Participation in various bodies with

consultative role, representative at local

level (Social Dialogue Commission attached

to the Institution of the Prefect of Bacău

County, Local Committee for the

Development of Social Partnership in Bacău

and Iași, Regional Committee for the

Development of Social Partnership

Opportunity: Establishing and

maintaining collaborations with bodies

that collect community concerns and

provide the company with the framework

to express its own values

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

Opportunity (O)

Security-related

Contributing to the well-being of

communities through job retention

Cutting jobs through activity

description

At the same time, our company contributes to the respect of the right to freedom of expression, having a

positive impact on the community by having representatives in various local consultative bodies. By

establishing and maintaining collaborations with such organizations that capture the community’s

concerns, the company has the opportunity to express its own values.

Policies related to affected communities

A significant impact our company has on society and communities is represented by the secure jobs we

provide as an economically strong employer and the tax revenues we contribute, which have a decisive

effect in improving the living standards of the community members. However, we have adopted

policies that go beyond that, in that we strive to influence our communities in a positive way through

engagement and by returning benefits to them. Under these policies, in addition to specific human

resources policies on recruitment and selection of personnel, we have ongoing concerns for:

engaging in public interest partnerships with the local authorities

sponsoring various events or public initiatives;

contributing to the educational and vocational training process, collaborating with the

educational establishments and getting involved in joint projects for the development and

adaptation of young people to the current requirements of the economic agents and the business

collaborating with non-profit organizations in order to support extra-curricular cultural-sport

and educational activities;

encouraging and supporting our employees to donate for the benefit of the community and to

get involved in the organization of donation campaigns, in humanitarian or charitable cases;

supporting the small business and SME communit y .

Processes for engaging with affected communities about impacts

In the spirit of our desire to influence communities in a positive way by getting involved and giving

back to them from our results, we work with the local authorities, industry employers’ organizations,

associations, foundations and other non-profit organizations, secondar y , high school and university

institutions and cultural and sports institutions.

W e maintain a permanent dialogue with the local communities, through our presence in various

consultative, locally representative bodies, including:

Social Dialogue Commission attached to the Institution of the Prefect of Bacău County;

Local Committee for the Development of Social Partnership (CLDSP) in Bacău and Iași, in

which we currently hold the presidenc y , being co-opted in the Regional Committee for the

Development of Social Partnership (CRDPS).).

W e also support the community of small entrepreneurs by supporting the activities of the County

Employers’ Association of SMEs (PJIMM) Bacău, where we disseminate our positive experiences, in

the pursuit of common interests.

At the same time, we maintain a dialogue with the other communities relevant to the compan y , such as the

business community in the aviation industr y . Thus, our company is represented in the Romanian

Aeronautical Industry Employers Organization (OPIAR).

W e collaborate with non-profit organizations in the interest of the knowledge and promotion of

cultural, historical and educational values, of strengthening the professional prestige of the workers in

76 | A E R O S T A R S . A .

the aviation industr y , of reinforcing the spirit of belonging to the group of elite manufacturers, in

leading fields of the Romanian and worldwide industr y .

Our company is the initiator of a series of actions together with the Bacău City Hall with a view to

setting up a dual education cluster in Bacău . The actions were aimed at setting up a legal association for

this purpose, in partnership with the Bacău City Hall, Bacău County Council, Bacău County School

Inspectorate , " V asil e Alecsandri " Universit y o f Bacă u an d th e Bacă u Count y Employers ’ Associatio n of

SMEs. The North-East Regional Development Agency - a non-profit organization from Piatra Neamț,

the technical colleges "Anghel Saligny" and "N. V . Karpen", as well as the "Dimitrie Mangeron"

T echnological High School from Bacău were also involved along the wa y . Subsequentl y , a consortium

was formed in accordance with the provisions of th e Applicant’s Guide for the submittal of a project to

obtain funding through the National Recovery and Resilience Program, chapter "Educated Romania",

for the setting up of an integrated vocational campus, high school and universit y , for dual education in

Bacău. In 2024 the project was selected for funding.

A ware of the benefits of culture and sport in the educational process, as well as of the positive impact of

cultural and sporting events in the communit y , we sponsor the "AEROS T AR Bacău Cultural and

Educational Association" - a non-profit organization with its own legal personalit y , as well as the

AEROS T AR Sport s Association, within which a professional football club and an aeromodelling club

operate. The AEROS T AR football club, as well as the aeromodelling club, are open to all talented

children or young people in the communit y .

The company’s expectations regarding the collaboration with the communities are related to our policy of

generating long-term recruitment and selection pools adequate fo r AEROS T AR’s future needs, from

among university and college graduates and from the human resource available in the communities

within our geographical area.

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

In 2024 - as in all previous years, our company has not recorded any negative impacts on the

communities. On the basis of previous positive experiences, the know-how acquired and developed

within the compan y , we will continue to improve our methods and tools to closely and systematically

monitor the results of our activities, to identify risks earl y , to assess impacts, and to identify and

implement the necessary corrections and improvement measures in a timely manne r .

Our values include strictly prohibiting any retaliation against a person who, in good faith, seeks help or

reports a known or suspected wrongdoing. W e also promote these values in our relations with our

Any member or representative of a community may file reports, complaints or grievances if they are

aware of or believe that they have been affected by a company action, including inaction by the

company in a case where it should have acted. The report, complaint, or grievance may be submitted

through any means of contact open to the public, in writing, to the company’s head office through the

company ’ s Registry Office or by mail, fax, e-mail, either in person or through a third party expressly

authorized by the owne r . The company will act diligently to resolve such reports, complaints or

grievances, and they will all be received and resolved, including anonymous complaints . All necessary

investigation s ar e carrie d ou t wit h discretio n an d al l case s ar e solve d wit h respec t fo r th e confidentiality

77 | A E R O S T A R S . A .

of information, principles and measures to protect personal data. Through our human resources

policies, we have in place the following core principles:

Collecting and processing personal data only within the scope of the responsibilities, and

powers assigned and only in the fulfilment of specific job duties;

Non-disclosure of data to third parties, in an unauthorized manner or outside the scope of their

specific job duties;

Informing the persons concerned of the purpose of data gathering and processing and, where

appropriate, obtaining their consent.

T aking action on material impacts on affected communities and approaches to mitigating material risks

and pursuing material opportunities related to affected communities, as well as the effectiveness of those

In order to manage and capitalize our offer of secure and better paid jobs to the communit y , our

compan y continuousl y carrie s ou t action s t o publiciz e it s activit y an d values , t o strengthe n an d promote

its image as a top employer , to identify and implement methods and tools specific to human resources

marketing, to create solid recruitment pools in the local community and in the immediate vicinit y , from

where to select new employees . At the same time, after hiring, the company conducts intensive training

activities for both new and existing employees; for the compan y , these activities represent actions to

minimize the risk of not having adequately qualified human resources.

In the same spirit of meeting the expectations of the local communities, our company is authorized to

organize qualification courses in four trades specific to the aviation industr y .

Furthermore, in 2024, the "Centre for assessment of professional competencies obtained by non-formal

means" set up within the company was authorized by the National Qualification s Authorit y . The above

authorization allows us to issue certificates of professional competency to any candidates in the

communit y , who would successfully complete the assessment process.

The actions planned and undertaken in relation to the material impact on communities generated by the

risk of environmental damage due to the company’s activities are outlined in the "Action Plan for the

achievement of quality and environmental objectives" for 2024, which includes the following actions:

analysis of changes in applicable legal and regulatory requirements and update, where

necessar y , the environmental working instructions;

training environmental officers regarding the provisions of the environmental working

conducting environmental inspections in areas with significant environmental aspects;

carrying out planned environmental audits.

In order to mitigate the risk of insufficient employment and retention among graduates from the local

communit y , AEROS T AR has carried out in 2024 a campaign to present the company’s activity and its

job offer to technical universities across the country that train specialists in professions of interest for our

business, in the fields of aeronautics, mechanics, electronics, etc. W e are interested in and present our

offer to future specialists in complementar y , collateral or related fields such as: automation,

information technolog y , transportation.

At the same time, we have supported the T echnical University of Bacău by participating in debates on the

occasion of the audits carried out by the Romanian Agency for Quality Assurance in Higher

Education for the accreditation of some faculties within this universit y . W e also have close relations

78 | A E R O S T A R S . A .

and partnerships with 6 technological high schools or technical colleges in Bacău and Iași that allow

their students to do internships in our compan y , and for a significant part of them we grant private

scholarships. At the end of their studies, the students of these high schools and colleges have priority for

employment in our compan y , as we are concerned to capitalize on the opportunity to optimize the

expenses with scholarships granted from company funds.

In 2024 no issues and incidents regarding human rights were reported in relation to affected

79 | A E R O S T A R S . A .

Interests and views of stakeholders

W e have the obligation towards both our customers and end users as well as towards our employees,

investors, suppliers, or representatives of the local community to be honest, fair and truthful in all our

W e are guided by the responsibility for sustainable development, we are consistent in applying the best

practices in the field and, in alignment with the practices of our business partners, we transparently

provide information, explanations and data in these categories of non-financial and financial reporting.

Satisfying customer requirements, complete safety for the users of our products and services are the

principles that guide our activities.

W e believe that all parties involved in the aerospace industry have a defining role to play in further

enhancing air safet y . The aviation industry is built on compliance with regulations, as a result

AEROS T AR respects, enforces and complies with these regulations, constantly acting at all levels to

prevent any form of risk and to deliver safe products and services.

AEROS T AR ’ s activities are carried out based on commercial contracts with our customers.

AEROS T AR products equip civil and military airplanes and our MRO services are intended for the

aircraft of the commercial airlines and for the maintenance of military aircraft of the Romania n Arm y .

W e consider that for AEROS T AR, the end-users in the field of aeronautical manufacturing are the

integrator s o f ou r product s int o th e fina l product . I n th e fiel d o f civi l aircraf t MRO , th e end-user s ar e the

airlines, and in the field of military aircraft MRO, the end-user is the Ministry of National Defence,

AEROS T AR being the first-tier supplier for it.

The interests, views and rights of the end-users are integrated into the business model through policies

relating to product management, quality assurance, delivery of quality products and services, full

safety for users along with continuous performance improvement.

This chapter should be read in conjunction with "AEROS T AR Activity and Products" and

"AEROS T AR Presence on the Global Market",

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

AEROS T AR’s strategy and business model (see page n r . 21) are designed in such a way that their

impacts are positive or minimize potential negative impacts, appropriately manage the risks and

opportunities arising from the actions with our customers, end-users or other stakeholders.

Since we believe that the entire value chain and our stakeholders need easily accessible and transparent

information about the impacts of our operations, the double materiality analysis has been conducted

from both a positive and a negative perspective.

80 | A E R O S T A R S . A .

Safety of products and services

Description of the impact Risk

Negative Potential Risk of end-user incident if not all applicable

End-users’ diminished confidence requirements are met.

in case of incidents.

The risk has financial effects

End-users’ diminished confidence in the case of incidents is a risk that can have material financial

effects. Our approach to mitigating this risk includes proactive monitoring and quality assurance

measures, as well as transparent communication with the end-users in order to maintain and build their

trust. W e are committed to providing high-quality products and services, meeting all safety and

compliance standards, to minimize risk and maximize our customers’ satisfaction.

Policies related to consumers and end users

The policies adopted by AEROS T AR S.A. have the following strategic objectives: satisfying the

requirements of our customers and end-users, complying with the legal and regulatory requirements

applicable to the activities carried out, enhancing environmental performance, full safety for the users

o f AEROS T AR S.A. products and services, as well as continuous improvement of the competitiveness of

our products and services.

The actions o f AEROS T AR S.A. are therefore aimed at continuously adapting the management system to

respond effectively to changes in the global market, appropriately allocating responsibilities and roles

in relation to the changes, but also ensuring an inclusive organizational culture for adherence to the

necessary measures.

AEROS T AR S.A. respects and guarantees equal and non-discriminatory treatment in relations with its

partners, collaborators and customers. The company’s personnel behave in a professional manner,

transparently and impartially ensures diversity and equal opportunities in relations with all

stakeholders, avoiding any action that could be construed as an act of discrimination. AEROS T AR

W e fully comply with national and international standards and regulations, applicable to

environmental, social and personnel aspects, human rights, anti-corruption and anti-briber y , and the

promotion of diversit y .

In AEROS T AR business relationships are protected by contracts or confidentiality agreements to

ensure the protection of company data and sensitive information.

Ou r managemen t syste m ensure s th e privac y o f ou r customers ’ dat a b y adoptin g effectiv e strategie s that

help us prevent privacy breach issues. Because of our management system and our consistency in

improving its effectiveness, there have been no complaints from our customers or end-users about non-

compliance with the privacy regulations.

The executive management is also concerned with ensuring compliance with all the

existing anti-corruption policies and procedures, including the whistleblower mechanism also

stipulated in the Romanian la w . For the reporting of problematic aspects, with the implementation of

81 | A E R O S T A R S . A .

OHS policies, potential hazards, unintentional errors and near misses can be reported, regulated by the

" V oluntary Reporting" procedure. "

In 2024 there were no complaints about breaches of customer confidentiality; no complaints received

from stakeholders; no complaints from regulatory bodies; no loss of customer data.

Processes for engaging with consumers and end users about impacts

AEROS T AR S.A. is a company that aims to accomplish its business portfolio by consistently pursuing

the highest standards of business ethics.

W e attach great importance to communication and transparency so that our customers or end-users

benefit from direct communication through emails, phone or fax numbers listed on the company’s

websit e an d othe r mean s liste d i n th e "Stakeholders " table. A t th e sam e time , i n busines s relations , each

operational department within the company is in direct communication with the corresponding

departments owned by the customers. Also, the marketing and development department has a

communication office acting as a public relations office.

Transparent communication strengthens and consolidates our partnerships . This approach enables us to

expand our market presence and develop long-term relationships.

Closely linked to this chapter is the chapter "The role of the administration, management and

supervisory bodies" (see page 13).

Processes to remediate negative impacts and channels for consumers and end-users to raise concerns

Recognizing the importance of protecting the well-being of the end users of our products and

preventing potential impacts, we fully follow procedures so as to manufacture products according to our

customers’ specifications. AEROSTAR S.A. has action plans and targets to reduce the risk of non-

conformities and to eliminate the related cost when they occur.

In our sustainability policy we are committed to ensuring the highest standards of quality, reliability

T aking action on material impacts on consumers and end-users, and approaches to managing material

risks and pursuing material opportunities related to consumers and end-users, as well as the

effectiveness of those actions

The relevant certification bodies audit the production facilities and support functions at least annuall y ,

conducting surveillance audits, and these are recertified every three years. W e hold EASA, F AA and

EMAR certifications which cover design, production and repai r . Added to these are the authorizations

obtained following the audits conducted by our customers.

AEROS T AR S.A. directly checks the compliance with the internal procedures and policies through

constant internal audits.

W e are certified according to ISO 9001 or EN/AS9100 management standard, which aligns us to the

international quality standards.

Our products are made and our services are provided in full compliance with the requirements of our

customers and users and with the legal and regulatory requirements in order to respect the health and

safety of users.

82 | A E R O S T A R S . A .

The risk management system consists of a set of rules, methods and organizational structures designed to

ensure the identification, assessment, mitigation and monitoring of critical risks relevant to

AEROS T AR S.A.

In the collaborations of AEROS T AR S.A., no real negative impacts on the end consumers have been

83 | A E R O S T A R S . A .

7. BUSINESS CONDUCT

Impacts, risks, opportunities

The sustainability aspects analysed in relation to the professional conduct are those specified in the thematic

standard and in Appendix AR16, as well as some aspects identified outside the standard.

The impacts on the professional conduct can directly influence the relationships with our customers, employees,

suppliers and business partners, thus affecting our reputation, trust and effectiveness.

Policies related to professional conduct and corporate culture

AEROS T AR upholds the company’s principles and values honestl y , fairly and with integrity and

consistently strives to comply with the highest standards of business ethics, having voluntarily adopted

the AEROS T AR Code of Business Conduct and Ethics for many years.

This code is posted on the company’s website ww w .aerosta r .ro and is part of the collective labour

agreement . T o the extent that this code requires a higher standard than that required by trade practice or

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

84 | A E R O S T A R S . A .

Business conduct

Improving control over the way the

provisions of the company’s Code of

Conduct and Ethics are respected

Payment practices

Supply chain and

sustainability aspects

Reputational risk, loss of

credibility in the business

communit y , reduction in the

number of active investors

Weakening the supply chain

through late payment or non-

payment of invoices

Inability to deliver on time

Opportunity (O)

behaviour that is

illegal or contravenes

the code of conduct

or the internal norms

Reputational risk, restricted

access to finance, fines resulting

from non-compliance with

governance standard

Real Positive ;

Promoting the responsibility to

comply with the legal provisions

and the code of business

conduct or other internal norms

as core values of the

organizational culture

Credibility in the business

environment, based on the

established and respected

ethical business conduct (the

company being freely traded on

the capital market)

Fair payment practices, on

agreed terms to all suppliers

who fulfil their contractual

The company is concerned with

minimizing supply chain risks

and maintaining a strong supply

chain with high supply capacity

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

This code is mandatory for administrators, employees and is adopted in all matters that concern our

employees, as well as our investors, customers, suppliers, representatives of the local communit y , other

business partners and contains general guidelines for conducting the company’s business in accordance

with the highest standards of business ethics.

The company has a simple and straightforward policy on the rules of conduct and behaviour that its

employees and agents must follow when conducting company business. They must do what is right,

comply with all legal requirements, behave honestly and with integrit y , treat people fairl y , respect

diversit y , accept responsibilit y , communicate openly and always maintain an impeccable behaviou r .

These requirements are generally referred to as ’ethics’. Every employee has an obligation to maintain

these high ethical standards at all times, even if doing so may result in loss of business for the compan y . No

employee should ever believe that a compromising or unethical situation (not complying with

business ethics) can be justified by achieving a business result. Anyone who violates these rules of

conduct and behaviour may be subject to disciplinary sanctions, including disciplinary termination of

the CIM and/or penal or civil penalties.

The Board of Directors pays special attention to the compliance with corporate governance principles

in order to ensure:

the achievement of sustainable performance of the development;

the accuracy and transparency of the company’s decision-making process;

respect for the rights and equitable treatment of the shareholders by protecting and exercising

their prerogatives;

transparency and access to information through regular publication of relevant financial and

operational information.

Management of relationships with suppliers

Through its policies, the company ensures that it aligns with internationally recognized instruments

relevant to the value chain workers regarding business and human rights. Through its contractual

requirements, AEROS T AR requires its suppliers to comply with the labour legislation applicable in

their country of origin.

The Supplier Code of Conduct represents the expectations we have of our suppliers to ensure a healthy

business relationship in accordance with our values, principles and ethical standards. If the

expectations of this code are not met, the business relationship may be revised and AEROS T AR S.A.

may propose corrective actions to the terms of the contract(s).

AEROS T AR S.A. has also defined in its General Conditions of Purchase its requirements for suppliers

on ethics and compliance with labour legislation.

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

85 | A E R O S T A R S . A .

Prevention and detection of corruption and bribery

Incidents of corruption or bribery

As mentioned above, the Company’s Code of Business Conduct and Ethics also clarifies the

Company’s position on the detection of corruption and briber y .

Thus , eac h employe e i s unde r th e obligatio n t o compl y wit h al l laws , rule s an d regulation s applicabl e to

the Company’s operations. Trial include, without limitation, laws relating to bribery and illegal

commissions, copyrights, trademarks and trade secrets, confidentiality of information, illegal political

contributions, antitrust interdictions, anti-corruption practices, the giving or accepting of gratuities,

environmental risks, workplace discrimination or harassment, occupational health and safet y , false or

misleading (erroneous) financial information or misuse of corporate assets. Each employee must

understand and comply with all laws, rules and regulations applicable to the position he/she holds.

If an employee discovers a questionable, fraudulent or illegal event that is or may be a violation of our

policies and could harm us, he or she is obligated to report it immediately to management who will take all

necessary steps to verify the veracity of the event.

In our compan y , the employees and citizens of our community can address requests, complaints,

notifications and proposals to the management through hearings. The hearings are held by the Chief

Executive Officer and, in his absence, by his substitute.

Depending on the issues notified, measures and deadlines for their settlement shall be laid down. The

final resolution of the issue will be communicated in writing, by e-mail, fax or phone by the designated

person after the issue has been definitively resolved during a hearing.

In 2024, there were no reported concerns or requests for counselling regarding unethical or illegal

behaviour and organizational integrity in our compan y , no incidents of corruption, no employees

dismissed or sanctioned for acts of corruption, and no incidents of corruption leading to the termination or

refusal to renew contracts with our business partners.

The company is committed to complying with the applicable national and international legislation on the

prevention of corruption and bribery and has not been involved in any incidents of this nature, nor have

any legal actions been filed in relation to these matters, during 2024.

At the same time, we ensure compliance with the same standard with regard to the prevention of

corruption and bribery by establishing contractual obligations with our partners, suppliers or customers to

comply with these provisions and to report incidents of this nature immediatel y .

Political influence and lobbying activities

In 2024, we did not make any political donations or implement any lobbying activities. AEROS T AR

S.A. has no concerns regarding political influence or political affiliations of any kind.

Moreover, none of the members of the Board of Directors or members of the management and

supervisory bodies have held a comparable position in public administration (including regulatory

authorities) during 2024.

86 | A E R O S T A R S . A .

Payment practices

Our company has fair payment practices, and in 2024 no late payments were reported and no legal

actions were taken regarding AEROS T AR S.A.’s non-compliance with the payment terms.

The Company is concerned with the matters related to combating money laundering and the financing of

terrorism, having implemented internal procedures in this regard, which describe the organizational

measures, the manner of identifying and reporting suspicious transactions as well as keeping records

related to these transactions.

87 | A E R O S T A R S . A .

8. ADDITIONAL TOPICS

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

Internal control tools, existing security procedures and systems, systematic monitoring and enforcement of

AEROS T AR S.A. policies are taken into account in order to ensure cyber security measures and compliance with

customs control regulations.

T o avoid risks related to information system securit y , a plan with measures for the implementation of ISO 27001

standard is in place and regular "Security Awareness" courses are envisaged.

Information system security

88 | A E R O S T A R S . A .

Risk (R) Opportunity (O)

Additional Topic

Compliance with

export/import control

Negative Potential

The company’s activities may

be negatively affected if

export control regulations are

not complied with

Failure to comply with the

regulations affects the company

by placing it on the list of denied

entities (affects military operations

internally and civil and military

operations externally)

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

GDPR data Negative Potential

Loss of personal data

confidentiality

Reputational risk, costs related to

incident remediation

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

Additional Topic

Impact (I) Risk (R) Opportunity (O)

Security incident - data

Negative Potential

Interruption of activity for a

longer period of time

Reputational risk, delayed

deliveries, costs related to incident

Report in accordance with Article 8 of (EU) Regulation (EU) 2020/852 of the European Parliament and of

the Council (" T axonomy Regulation")

1. INTRODUCTION

In 2023, the European Commission published a delegated act for the EU T axonomy Regulation, which

includes a set of specific criteria for the aviation secto r . This initiative recognizes the decarbonization

potential of the latest generations of commercial aircraft. This potential is manifested through the

replacemen t o f th e curren t flee t an d a n ambitiou s increas e i n th e us e o f Sustainabl e Fuel s (SAF) , a s well

as "zero direct tailpipe CO2 emissions" technologies”.

T echnical Screening Criteria

The T echnical Screening Criteria (TSCs) have been progressively developed in line with the six

environmental objectives set by the Climate Delegated Act (applicable from January 1, 2022) and the

complementary Climate Delegated Act (applicable from January 1, 2023).

The European Commission has adopted a delegated act targeting economic activities that contribute

significantly to other environmental objectives and has amended the Climate Delegate d Act by adding

additional economic activities and criteria, including in the aviation secto r .

Disclosing the regulations

The European Unio n T axonomy is designed to establish a list of economic activities that are considered

environmentally sustainable. This taxonomy is defined in accordance with the (EU) Regulation

2020/852 of the European Parliament and of the Council, known as the ’ T axonomy Regulation’. The

information disclosed must be in line with Article 8 of this Regulation, which requires companies to

disclose how their activities contribute to the environmental objectives set by the EU. In addition, the

European Commission Delegated Regulation (EU) 2021/2139 specifies the technical screening criteria

for determining whether an economic activity contributes substantially to climate change mitigation

and adaptation. The (EU) Delegated Regulation 2023/2486 extends and updates these criteria to

include new economic activities and to ensure compliance with the latest EU environmental objectives.

The T axonomy focuses on six major environmental objectives, each with specific sets of criteria that

must be met for an economic activity to be classified as environmentally sustainable. T o be aligned

with the T axonom y , an eligible activity must comply with the criteria of Substantial Contribution to

Multiple Objectives, the DNSH criteria and the minimum safeguards.

2. ASSESSING THE ACTIVITIES AND THE COMPLIANCE WITH THE T AXONOMY

AEROS T AR has made a detailed analysis of the exposure to taxonomy-eligible activities in

accordance with the applicable delegated acts. In addition, it has assessed the compliance with the

relevant T echnical Screening Criteria (TSC), including the DNSH (Do No Significant Harm) criteria

89 | A E R O S T A R S . A .

and the minimum safeguards required. The review of the economic activities was carried out in

consultation between the financial and technical departments, and the assessment process included an

overall analysis of our contribution to the climate change mitigation objective.

Eligible economic activities

The company’s activities identified as eligible for taxonomy are those described in the T echnical

Screening Criteria, as per paragraph 3.21, relating to aircraft manufacturing - described as

"manufacture, repair, maintenance, overhaul, overhaul, reconditioning, design, conversion and

modernization of aircraft and aircraft parts and equipment", in accordance with NACE codes C30.3

According to the technical screening criteria for "Aircraft Manufacturing", the substantial contribution to

climate change mitigation can be assessed in two ways: a) for aircraft with "zero direct tailpipe CO2

emissions" or b) for aircraft meeting the performance criteria for CO2 emissions set out in the ICAO

standards. Given that the ICAO standard only applies to commercial aircraft and that alignment with

this standard will be reported from 2025 onwards, which means that aircraft manufacturers and

operators need to ensure that their fleets comply with these requirements in order to contribute to

climate change mitigation, the assessment of alignment against these criteria is only relevant for

commercial aircraft products.

The company’s EU taxonomy reporting covers the following scope: the EU taxonomy’s share of

turnover, capital expenditure ("CapEx") and operating expenditure ("OpEx") and total assets. W e

valued and allocated turnover , CapEx, OpEx and total assets through a process of correlation between

the activities specified in the EU T axonomy and our internal portfolio of revenues, investments and

expenses. In the context of E U T axonomy reporting, the company may omit economic activities that do

not exceed 1% of total turnover , CapEx, OpEx or total assets, as they are deemed not to have a material

impact on the reporting purpose.

As a manufacturer of parts and subassemblies for the aviation industr y , as well as a provider of

maintenance and repair services, the majority of the company’s revenue, CapEx, OpEx and total assets

are related to th e Aircraft Manufacturing business . As the "Aircraft Manufacturing" activity contributes to

climate change mitigation, it can also contribute to the rest of the environmental objectives. The

company has assessed this contribution to any other objective as being insignificant for reporting

purposes and is therefore reporting the contribution to climate change mitigation onl y .

In line with the requirements set for Activity 3.21 Aircraft Manufacturing regarding the substantial

contribution to climate change mitigation, the company has identified the following relevant aspects

that prevent the compliance with the technical selection criteria:

Compliance with CO₂ emission requirements: At the time of reporting, the company is unable to

determine the proportion of aircraft meeting the CO₂ emission metric specified in the ICAO

standard as specified in point (b) of the technical selection criteria. The absence of official

certification of CO₂ metric values or a declaration of compliance with the requirements

prevents a full assessment of eligibilit y .

90 | A E R O S T A R S . A .

Calculation of aircraft replacement rate : T o date there is no officially published indicator on the

replacement ratio and the company does not have a database with the necessary information to

calculate this indicator as required by the EU T axonom y .

Despite these constraints, the company reaffirms its commitment to sustainability and compliance with

the applicable regulations. The company will continue to monitor the legislative developments and

assess its business activities in order to align with the requirements of the EU Taxonomy. The

Company expects the reporting to evolve as additional information required for the analysis becomes

available as described above. Future guidance on the EU Taxonomy may result in updated definitions

and further decisions on the reporting obligations.

91 | A E R O S T A R S . A .

92 | A E R O S T A R S . A .

Circular economy (9)

Biodiversity (10)

Circular economy (15)

Biodiversity (16)

Minimum safeguards (17)

description

description

description

Climate change mi

Climate change mi

i on of t a xonomy-

ali gn e d turnover

(A.1.) or t a xonomy

(A.2.) turnover,

ye a r 2023 (18)

i v i ty c a te gory

c a te gory (19) (20)

D/N D/N D/N D/N D/N D/N D/N % F a c ili t a

manufacturing CCM 3.21 584,004,013 100% N N N N N N D D D D D D D 0% F a c ili t a

584,004,013 100% 0% 0% 0% 0% 0% 0% 0%

584,004,013 100% 100% 0% 0% 0% 0% 0% 0%

584,004,013 100%

ies eligible in terms of taxonomy but which are not environmentally sustainable (not taxonomy-aligned ac

Year 2024 Criteria for substan

ion Does Not Signi

cantly Harm (DNSH) criteria

A. TAXONOMY ELIGIBLE ACTIVITIES

A.1. Environmentally sustainable ac

ies (taxonomy-aligned)

Turnover of environmentally

Of which facilita

Of which transi

B. ACTIVITIES THAT ARE TAXONOMY-NON-ELIGIBLE

taxonomy-non-eligible

Turnover of taxonomy-eligible but

environmentally non-sustainable

ies (not taxonomy-aligned

A. Turnover of taxonomy eligible

93 | A E R O S T A R S . A .

Circular economy (9)

Biodiversity (10)

Circular economy (15)

Biodiversity (16)

Minimum safeguards (17)

description

description

description

Climate change mi

Climate change mi

(A.1.) or t a xonomy

i on of t a xonomy-

ali gne d C a pEx

i v i ty c a t e gory

c a te gory (19) (20)

ye a r 2023 (18)

D/N D/N D/N D/N D/N D/N D/N % F a c ili t a

manufacturing CCM 3.21 26,625,246 100% N N N N N N D D D D D D D 0% F a c ili t a

100% 0% 0% 0% 0% 0% 0% 0%

100% 100% 0% 0% 0% 0% 0% 0%

26,625,246 100%

es eligible in terms of taxonomy but which are not environmentally sustainable (not taxonomy-aligned ac

Year 2024 Criteria for substan

on Does Not Signi

cantly Harm (DNSH) criteria

A. TAXONOMY ELIGIBLE ACTIVITIES

A.1. Environmentally sustainable ac

es (taxonomy-aligned)

CapEx related to environmentally

Of which facilita

Of which transi

onal 0 0% 0% 0%

B. ACTIVITIES THAT ARE TAXONOMY-NON-ELIGIBLE

taxonomy-non-eligible

CapEx related to taxonomy-eligible

but environmentally non-sustainable

es (not taxonomy-aligned

A. CapEx related to taxonomy

94 | A E R O S T A R S . A .

Circular economy (9)

Biodiversity (10)

Circular economy (15)

Biodiversity (16)

Minimum safeguards (17)

description

description

description

Climate change mi

Climate change mi

(A.1.) or t a xonomy

on of t a xonomy-

ali gn e d OpEx

v i ty c a t e gory

c a t e gory (19) (20)

ye a r 2023 (18)

D/N D/N D/N D/N D/N D/N D/N % F a c ili t a

manufacturing CCM 3.21 19,930,599 100% N N N N N N D D D D D D D 0% F a c ili t a

100% 0% 0% 0% 0% 0% 0% 0%

100% 100% 0% 0% 0% 0% 0% 0%

19,930,599 100%

es eligible in terms of taxonomy but which are not environmentally sustainable (not taxonomy-aligned ac

Year 2024 Criteria for substan

on Does Not Signi

cantly Harm (DNSH) criteria

A. TAXONOMY ELIGIBLE ACTIVITIES

A.1. Environmentally sustainable ac

es (taxonomy-aligned)

OpEx related to environmentally

Of which facilita

Of which transi

onal 0 0% 0% 0%

B. ACTIVITIES THAT ARE TAXONOMY-NON-ELIGIBLE

es that are taxonomy-

OpEx related to taxonomy-eligible

but environmentally non-sustainable

es (not taxonomy-aligned

A. OpEx related to taxonomy eligible

95 | A E R O S T A R S . A .

Circular economy (9)

Biodiversity (10)

Circular economy (15)

Biodiversity (16)

Minimum safeguards (17)

description

description

description

Tot a l asse ts

Climate change mi

Climate change mi

i on of t a xonomy-

ali gn e d Tot a l asse ts

(A.1.) or t a xonomy

(A.2.)Tot a l asse t s ,

ye a r 2023 (18)

i v i ty c a t e gory

c a t e gory (19) (20)

D/N D/N D/N D/N D/N D/N D/N % F a c ili t a

manufacturing CCM 3.21 814,518,419 100% N N N N N N D D D D D D D 0% F a c ili t a

814,518,419 100% 0% 0% 0% 0% 0% 0% 0%

814,518,419 100% 100% 0% 0% 0% 0% 0% 0%

814,518,419 100%

es eligible in terms of taxonomy but which are not environmentally sustainable (not taxonomy-aligned ac

Year 2024 Criteria for substan

on Does Not Signi

cantly Harm (DNSH) criteria

A. TAXONOMY ELIGIBLE ACTIVITIES

A.1. Environmentally sustainable ac

es (taxonomy-aligned)

Total assets related to

environmentally sustainable

es (taxonomy-aligned) (A.1)

Of which facilita

Of which transi

onal 0 0% 0% 0%

B. ACTIVITIES THAT ARE TAXONOMY-NON-ELIGIBLE

Total assests of ac

taxonomy-non-eligible

Total assets related to taxonomy-

eligible but environmentally non-

es (not taxonomy-

A. Total assets related to taxonomy

Employees by type of contract, broken down by gender

FEMALE MALE OTHER * UNDECLARED TO T AL

Number of employees (number of persons)

539 1.307 0 0 1.846

Number of permanent employees (number of persons)

523 1.229 0 0 1.752

Number of temporary employees (number of persons)

Number of employees with non-guaranteed working hours (number of persons)

Number of full-time employees (number of persons)

538 1.306 0 0 1.844

Number of part-time employees (number of persons)

FEMALE MALE OTHER* UNDECLARED TO T AL

Number of employees (number of persons)

553 1.330 0 0 1.883

Number of permanent employees (number of persons)

528 1.224 0 0 1.752

Number of temporary employees (number of persons)

Number of employees with non-guaranteed working hours (number of persons)

Number of full-

me employees (number of persons)

552 1.329 0 0 1.881

Number of part-

me employees (number of persons)

* The gender is as men

ioned by the employees.

96 | A E R O S T A R S . A .

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

Number of employees - Bacău

FEMALE MALE TO T AL

531 1.238 1.769

Number of employees - Iași

T otal number of employees

539 1.307 1.846

FEMALE MALE TO T AL

Number of employees - Bacău

542 1.253 1.795

Number of employees - Iași

T otal number of employees

T otal number of employees

Employees on permanent contracts

xed-term contracts

FEMALE MALE TO T AL

539 1.307 1.846

495 1.111 1.606

T otal number of employees

Employees on permanent contracts

xed-term contracts

FEMALE MALE TO T AL

498 1.129 1.627

552 1.329 1.881

97 | A E R O S T A R S . A .

Gender distribution by number and percentage at management level

FEMALE MALE TOTAL

Number of management employees

Percentage of management employees

Personnel structure by age groups and gender

FEMALE MALE TOTAL

539 1.307 1.846

FEMALE MALE TOTAL

553 1.330 1.883

FEMALE MALE TOTAL

98 | A E R O S T A R S . A .

FEMALE MALE TOTAL

Number of management employees

Percentage of management employees

FEMALE MALE TOTAL

99 | A E R O S T A R S . A .

ESRS REPORTING REQUIREMENTS COVERED BY THE SUS T AINABILITY S TA TEMENT

100 | A E R O S T A R S . A .

BP-1- General basis for preparing the sustainability statements

BP-2- Reporting information regarding specific circumstances

GO V -1 - The role of the administrative, management and

supervisory bodies

Statement on due diligence

SBM-2 - Stakeholders’ interests and views

MDR-P Policies - Policies adopted to manage material

sustainability aspects

MDR-A Actions - Actions and resources in relation to material

sustainability aspects

MDR-M – Metrics in relation to material sustainability matters

description

description

Standard Disclosure requirements (RR) Applicable data points

5(a), 5(c), 5(d)

13(a), 15,16, AR 2

21, 22, 23, AR3

GO V -2 – Information provided to the company’s administrative,

management and supervisory bodies and sustainability aspects 26(a), 26(b)

addressed by them

Integrating sustainability performance into incentive

GO V -5 - Risk management and internal controls related to

sustainability reporting

SBM-1 - Strateg y , business model and value chain

40(a), 40(b), 42

SBM-3 - Material impacts, risks and opportunities and their

interaction with strategy and business model

IRO-1 - Description of processes to identify and assess material

impacts, risks and opportunities

IRO-2 – Disclosure requirements in ESRS covered by the

company’s sustainability statement

Indicators and targets

MDR-T T argets - Tracking the effectiveness of policies and

actions through targets

101 | A E R O S T A R S . A .

description

description

description

description

Standard Disclosure requirements (RR)

Applicable data points

E1-1 – Transition plan for climate change mitigation

E1-2 – Climate change mitigation and adaptation policies 22

E1-3 – Climate change policy actions and resources 26

E1-4 – Climate change mitigation and adaptation targets 30

E1-5 – Energy consumption and energy mix 35,37,39

E1-6 – Gross emissions of GHG categories 1, 2, 3 and total 44,48,49,53

E1-7 – GHG removals and GHG mitigation projects financed

through carbon credits

E1-8 – Internal carbon pricing 62

E1-9 – Anticipated financial impacts of material physical and 64

transition risks and potential climate-related opportunities

E2-1 – Pollution-related policies 12

E2-2 – Pollution actions and resources 16

E2-3 – T argets related to pollution 20, 23

E2-4 – Air, water and soil pollution 26

E2-5 – Substances of concern and substances of very high 32, 35

marine resources

E2-6 – Anticipated financial effects of pollution-related 36

impacts, risks and opportunities

E3-1 – W ater and marine resources-related policies 9

E3-2 – Actions and resources related to water and marine 15

E3-3 – T argets related to water and marine resources 20

E3-4 – W ater consumption 26, 29

Biodiversity and

E3-5 – Anticipated financial effects of impacts, risks and

opportunities related to water and marine resources

E4-1 – Transition plan and consideration of biodiversity and

ecosystems in the strategy and business model

E4-1 – Transition plan and consideration of biodiversity and

ecosystems in the strategy and business model

E4-2 – Biodiversity and ecosystems policies

E4-3 – Actions and resources related to biodiversity and

E4-4 – T argets related to biodiversity and ecosystems

E4-5 – Impact metrics related to biodiversity and ecosystems

E4-6 – Anticipated financial impacts from biodiversity and

ecosystem-related risks and opportunities

102 | A E R O S T A R S . A .

description

circular economy

E5-1 – Policies related to resource use and circular economy 12

E5-2 – Actions and resources related to resource use and the 17

E5-3 – T argets related to resource use and circular economy

E5-4 – Resource inflows

E5-5 – Resource outflows

E5-6 – Anticipated financial effects of material risks and

opportunities arising from resource use and circular economy-

related impacts

103 | A E R O S T A R S . A .

S1-1 – Own workforce policies

S1-2 – Processes for engaging with own workers and workers’

representatives on impacts

S1-3 – Processes to remediate negative impacts and channels for

own workers to raise concerns

S1-4 – T aking action on material impacts on own workforce and

approaches to mitigating material risks and pursuing material

opportunities related to own workforce, and effectiveness of

S1-5 – T argets related to managing material negative impacts,

advancing positive impacts and managing material risks and

S1-7 – Characteristics of non-employee workers in the

company’s own workforce

S1-8 – Coverage of collective negotiations and social dialogue

S1-11 – Social protection

S1-13 - Training and skills development metrics

S1-14 - Health and safety metrics

S1-15 - W ork-life balance metrics

description

description

description

Standard Disclosure requirements (RR)

Applicable data points

19, 20 (a), 20 (b), 20 (c), 21, 23, 24 (a), 24

(b), 24 (c), 24 (d), AR 13

27 (a), 27 (b), 27 (c), 27 (e), 28

32 (a), 32 (b), 32 (c), 32 (d), 32 (e), 33

38 (a), 38 (b), 38 (c), 38 (d), 40 (a), 40 (b),

46, 47 (a), 47 (b), 47 (c)

S1-6 – Characteristics of the company’s employees

50 (a), 50 (b) i., 50 (b) ii., 50 (b) iii., 50 (c),

S1-9 – Diversity metrics

S1-10 – Adequate salaries

74 (a), 74 (b), 74 (c), 74 (d), 74 (e)

S1-12 – People with disabilities

88 (a), 88 (b), 88 (c), 88 (d), 88 (e), AR 91

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

97 (a), 97 (b), AR 100, AR 101 (a)

S1-17 – Incidents, complaints and severe human rights issues 102, 103 (a)

S2-1 Policies related to value chain workers

S2-2 - Processes for engaging with value chain workers

S2-3 – Processes to remediate negative impacts and

channels for value chain workers to raise concerns

S2-4 – T aking action on material impacts on value chain

workers and approaches to managing material risks and

pursuing material opportunities related to value chain

workers, and the effectiveness of those actions

description

description

description

description

Disclosure requirements (RR)

Applicable data points

SBM-3 – Material impacts, risks and opportunities and

their interaction with the strategy and business models

11, 11 a) i÷, 11 b), 11 c), 11 e)

17, 18, 19, AR.15, AR.12, AR.16

22. a ÷ b), 22. c), 22. d), 22. e)23

27 a), 27 b ÷ d), 28, AR25

S2-5 – T argets related to managing material negative

impacts, promoting positive impacts and managing

material risks and opportunities

104 | A E R O S T A R S . A .

description

description

Standard Disclosure requirements (RR)

Applicable data points

S3-1 - Policies related to affected communities

S3-2 – Processes for engaging with affected 19, 21 (c, d), 22

communities about impacts

S3-3 – Processes to remediate negative impacts and

channels for affected communities to raise concerns

25, 27 (b, c, d), 28

S3-4 – T aking action on material impacts on affected

communities and approaches to managing material risks

and pursuing material opportunities related to affected

communities, and the effectiveness of those actions

30, 32 (a,c), 33 (b), 34, 36

S3-5 – T argets related to managing material negative

impacts, promoting positive impacts and managing

materials risks and opportunities

105 | A E R O S T A R S . A .

description

description

description

Standard Disclosure requirements (RR) Applicable data points

S4-1 - Policies related to consumers and end-users

S4-2 – Processes for engaging with consumers and end-

users about impacts

S4-3 – Processes to remediate negative impacts and

channels for consumers and end-users to raise concerns

S4-4 – T aking action on material impacts on consumers

and end-users and approaches to managing material risks

and pursuing material opportunities related to consumers

and end-users, and the effectiveness of those actions

S4-5 – T argets related to managing material negative

impacts, promoting positive impacts and managing

material risks and opportunities

description

description

description

description

description

Disclosure requirement

and related data point

SFDR reference(1)

GHG emission reduction

targets point 34;

Indicator No. 4 in

T able 2 o f Annex 1

(EU) Regulation

Regulation (EU)

2022/2453 Model

3: Banking book -

Transition Risk:

Reference in the

Delegated Regulation

(EU) 2020/1818, Article

Indicator No. 5 in

T able 1 o f Annex 1

ESRS E1-5 energy

consumption and mix

Gross scopes 1, 2, 3 and

total GHG emissions

Indicators 1 and 2 in

T able 1 o f Annex 1

Delegated Regulation

(EU) 2020/1818, Articles

5(1), 6 and 8 paragraph

Intensity of gross GHG

paragraphs (53)-(55)

Indicator No. 3 in

T able 1 o f Annex 1

Article 449a of

(EU) Regulation No

Regulation (EU)

2022/2453 Model

1: Banking book -

transition risk:

credit quality of

exposures by sector,

residual maturity

Article 449a of

(EU) Regulation

Regulation (EU)

2022/2453 Model

3: Banking book -

transition risk:

Delegated Regulation

(EU) 2020/1818, Article

8 paragraph (1)

GHG removals and

carbon credits paragraph

Quantity of each

pollutant listed in Annex

II of the European

Pollutant Release and

Transfer Register "E-

PRTR Regulation"

emitted to air, water and

Indicator No. 8 in

T able 1 o f Annex 1

Indicator No. 2 of

T able 2 in Annex 1

Indicator No. 1 of

T able 2 in Annex 1

Indicator No. 3 of

T able 2 in Annex 1

106 | A E R O S T A R S . A .

description

Indicator No. 7 of

T able 2 in Annex 1

Indicator No. 8 of

T able 2 in Annex 1

Indicator No. 6.2 of

T able 2 in Annex 1

Indicator No. 6.1 of

T able 2 in Annex 1

Indicator No. 7 of

T able 1 in Annex 1

Indicator No.10 of

T able 2 in Annex 1

Indicator No. 14 of

T able 2 in Annex 1

Indicator No. 13 of

T able 2 in Annex 1

Water and marine

resources point 9

Specific policy point 13

Total water recycled and

reused point 28(c)

Total water consumption

in its own operations in

m3 per net revenue

ESRS 2- IRO 1 - E4

point 16(a) (i)

ESRS 2- IRO 1 - E4

ESRS 2- IRO 1 - E4

Non-recycled waste point

Hazardous waste and

radioactive waste point

Indicator No.9 of

T able 1 in Annex 1

107 | A E R O S T A R S . A .

ABBREVI A TIONS

Aerospace and Defence Chromates Reauthoriza

Ordinary General Mee

ing of Shareholders

Financial Supervisory Authority

Bucharest Stock Exchange

Council on Sustainable Repor

Chromium T rioxide Authoriza

ion Safety Agency

European Chemicals Agency

European Military Airworthiness Requirements

European Sustainability Repor

European Unique Iden

er of the Company

General Data Protec

Greenhouse Gases

ional Financial Repor

ion for Economic Coopera

ion and Development

ional Labour Organiza

High-Density Polyethylene

ion and Restric

ion of Chemicals

ional Health and Safety

108 | A E R O S T A R S . A .

AEROSTAR S.A. Trial

INDIVIDUAL FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

Prepared in accordance with

The Order of the Minister of Public Finance no. 2844/2016, for the approval of the

Accounting Regulations in accordance with the

International Financial Reporting Standards

TABLE OF CONTENTS

COMPANY STATEMENT OF PROFIT OR LOSS

OTHER COMPREHENSIVE INCOME

COMPANY STATEMENT OF FINANCIAL POSITION

CAMPANY STATEMENT OF CASH FLOWS

COMPANY STATEMENT OF CHANGES IN EQUITY

NOTES TO THE COMPANY FINANCIAL STATEMENTS

AEROSTAR S.A. BACĂU

COMPANY STATEMENT OF PROFIT OR LOSS

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

(unless specified otherwise, all amounts are stated in thousand lei)

5;6;20 (27.110)

Operating expenses

Material expenses

Expenses on employee benefits

Expenses on depreciation of fixed assets

Net income (expenses) from current asset

Net income (expenses) from provision adjustments

Financial income

Financial expenses

Tax on current and deferred profit 17;23 (9.084) (3.928)

Operating income

Income from stocks of finished goods and production

Income from the production of fixed assets

Income from operating subsidies

Total operating income

Expenses on external services

Total operating expenses

Profit/loss from operating activity 87.195 79.791

Financial profit/loss

Profit before tax

Net profit of the period

Chief Executive Officer,

Financial Director,

Alexandru Filip

AEROSTAR S.A. BACĂU

COMPANY STATEMENT OF OTHER COMPREHENSIVE INCOME

FOR THE YEAR ENDED ON 31 DECEMBER 2024

(unless specified otherwise, all amounts are stated in thousand lei)

Deferred income tax recognised on account of

Fair value revaluation of equity instruments through

other comprehensive income

Gain transferred to retained earnings on sale

of company equity instruments through AECP

Net profit for the period

Other comprehensive income

Total comprehensive income for the period

Chief Executive Officer,

Financial Director,

Alexandru Filip

AEROSTAR S.A. BACĂU

COMPANY STATEMENT OF THE FINANCIAL POSITION

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

unless specified otherwise, all amounts are stated in thousand lei)

Note 31 December

Non-current assets

Property, plant and equipment

Intangible assets

Investment property

Rights to use assets under lease

Fixed financial assets

Receivables on deferred income tax

Total non-current assets

Trade receivables and other receivables

Current corporate tax receivables

Short-term prepaid expenses

Cash and cash equivalents

Total current assets

COMPANY EQUITY AND LIABILITIES

Capital and reserves

Result carried-forward

Deferred income tax recognized on equity

Distribution of profit for legal reserve

Total company equity

Long-term liabilities

Liabilities regarding deferred income tax

Subsidies for long-term investments

Other long-term liabilities

Total long-term liabilities

Long-term provisions

Current liabilities

Trade liabilities

Current corporate income tax liability

Subsidies for short-term investments

Other current liabilities

Total current liabilities

Short-term provisions

Total provisions

Total liabilities

Total company equity, liabilities and provisions

Chief Executive Officer,

Financial Director,

Alexandru Filip

AEROSTAR S.A. BACĂU

COMPANY STATEMENT OF CASH FLOWS

(DIRECT METHOD)

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

(unless specified otherwise, all amounts are stated in thousand lei)

dividends received from other entities

NET CASH FROM INVESTMENTS

Note 31.12.2024

CASH FLOWS FROM OPERATING

cash collected from customers

tax and excise recoveries from the State Budget

subsidies received from the State Budget

payments to suppliers

payments to employees

payments of taxes, contributions and duties to

the State Budget

payments of profit tax to the State Budget

NET CASH FROM OPERATING

CASH FLOWS FROM INVESTING

interest income from bank deposits

proceeds from sale of financial fixed assets

proceeds from non-reimbursable funds

dividends received from affiliated entities

payments for purchase of financial fixed assets

payments for purchase of property, plant and

equipment and intangible assets

CASH FLOWS FROM FINANCING

gross dividends paid

NET CASH FROM FINANCING

Net increase/decrease in cash and cash

Cash and cash equivalents at the beginning

Effect of exchange rate changes on cash and

cash equivalents

Cash and cash equivalents at the end of the

Chief Executive Officer,

Financial Director,

Alexandru Filip

AEROSTAR S.A. BACĂU

COMPANY STATEMENT OF CHANGES IN COMPANY EQUITY

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

unless specified otherwise, all amounts are stated in thousand lei

description

description

description

description

description

description

description

description

financial assets

Deferred income

tax recognised as

Comprehensive result

A. Balance on 1 January 2024

Profit for the period

Other comprehensive income

Set up of deferred income tax recognised as company

65.104 (65.104) -

Allocation of the profit for the financial year 2023 to

the uses decided by the shareholders at the OGMS on

18 April 2024 (Note 12)

Allocation of the profit made in 2024 to tax relief

reserves, in gross amounts

Gain transferred to retained earnings on sale of equity

instruments through other comprehensive income

(2.448) 2.928 480

Revaluation at fair value of equity instruments through

other comprehensive income

Transfer to reserves of retained earnings representing

surplus from revaluation reserves

Total comprehensive income for the period

Reserves distributed from the profit of 2023

Dividends distributed for 2023

Transactions with shareholders recognised directly

B. Balance on 31 December 2024

C. Changes in equity (Note 12)

48.729 459.571 8.110

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

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

Chief Executive Officer,

Alexandru Filip

Financial Director,

AEROSTAR S.A. BACĂU

COMPANY STATEMENT OF CHANGES IN EQUITY

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023

(all amounts are stated in thousand lei)

description

description

description

description

description

description

description

description

financial assets

Deferred income

tax recognized on

Comprehensive income

A. Balance on 1 January 2023

Profit of the period

Other comprehensive income

Setting up of deferred income tax recognized in equity (3.827) 222 (3.605)

Distribution of the profit for the financial year 2022 to

the destinations decided by the shareholders at the

AGM of 20 April 20, 2023 (Note 12)

Distribution of the profit realized in 2023 for tax

incentive reserves in gross amounts

Gain transferred to retained earnings related to the sale

of equity instruments through other elements of

comprehensive income

Revaluation at fair value of equity instruments through

other elements of comprehensive income

Transfer to reserves of the retained earnings

representing surplus generated from revaluation

Total comprehensive income for the period

Reserves distributed from 2022 profit

Dividends distributed for 2022

Transactions with shareholders recognized directly

B. Balance on 31 December 2023

C. Changes in equity (Note 12)

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

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

Chief Executive Officer,

Alexandru Filip

Financial Director,

AEROSTAR S.A. BACĂU

NOTES TO THE COMPANY FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

(unless specified otherwise, all amounts are stated in thousand lei

NOTE 1 – COMPANY DESCRIPTION

AEROSTAR was established in 1953 and operates in accordance with the Romanian law.

AEROSTAR S.A. performs its activity at its registered head office located in Bacau, 9,

Condorilor Street, code 600302. In accordance with the Resolution no. 2/14.12.2017 of the Board of

Directors, the opening of a secondary place of business without legal personality (workplace) located

in Iasi, on 25B Aeroportului Street has been approved. Moreover, in accordance with the Decision of

the Board of Directors nr.1/02.06.2023 the opening of a secondary office without legal personality

(workplace) located in Fetești, 2 Carpați Street, ap. 7 has been approved.

The main field of activity of AEROSTAR is production.

The main object of activity of the company is “Manufacture of aircraft and spaceships” - code

The company was registered as a shareholding company at the Bacău Trade Register (under

number J1991001137040), with the current name “AEROSTAR S.A.” and the unique identification

code 950531, the European Unique Identifier (EUID) code ROONRC.J1991001137040.

Th e compan y i s liste d o n th e Buchares t Stoc k Exchang e unde r th e AR S code , an d th e recor d of

its shares and shareholders is kept, as provided by law, by S.C. Depozitarul Central S.A. Bucharest.

During the year 2024, there was no subscription of new shares, nor any participation

certificates, convertible bonds, warranties, options or similar rights.

In terms of accounting regulations, AEROSTAR S.A. is a subsidiary of the company IAROM

S.A. and, therefore, the parent company that consolidates the financial statements of the group is S.C.

IAROM S.A., with the unique identification code 1555301, having its registered head office in

Bucharest, at number 39, Aerogării B-d. The consolidated financial statements for the financial year

2021 were submitted to A.N.A.F. under registration number 770692053/22.08.2024. Copies of the

consolidated financial statements can be obtained from the head office of the parent company,

IAROM S.A. The parent company will prepare and publish a set of consolidated financial statements

in accordance with the applicable accounting regulations, for the financial year ended on 31.12.2024.

The company has a single operating segment in accordance with IFRS 8 and no distinct

financial information is available for various components of the entity. The information regarding the

sales by categories of products and markets is detailed in the Board of Directors’ Report.

The company’s policy is focused on maintaining a solid capital basis in order to support the

continuous development of the company and the achievement of its strategic objectives.

The company will continue to act decisively to ensure the sustainability of its investments and

the preservation of its production capabilities. Furthermore, thanks to the experience gained within

our team, the company acts towards finding the most appropriate solutions to the new economic

AEROSTAR S.A. BACĂU

NOTES TO THE COMPANY FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

(unless specified otherwise, all amounts are stated in thousand lei

NOTE 2 - ACCOUNTING ESTIMATES, ASSUMPTIONS AND

The preparation and presentation of the individual financial statements in accordance with

IFRS involves the use of estimates, judgements and assumptions that affect the implementation of

the accounting policies as well as the reported value of the assets, liabilities, revenues and expenses.

The estimates and judgements are made based on the historic experience as well as on a

series of factors considered adequate and reasonable. The accounting estimates and judgements are

continuously updated and take into account reasonable expectations with respect to future probable

events. The reported accounting values of the assets, the liabilities that cannot be determined or

obtained from other sources are based on these estimates considered adequate by the Company’s

Such estimates, as well as the reasoning and assumptions behind them are reviewed on a regular

basis and the result thereof is recognized in the time period when the estimate was reviewed. Any

change in the accounting estimates will be recognized prospectively by its inclusion in

of the period of time when the change occurs, if it affects only that period of time; or

of the period of time when the change occurs and of the subsequent periods, if the

change also affects such periods.

The Company uses estimates in order to determine:

the uncertain customers and the adjustments for impairment of related receivables;

the value of the provisions for risks and expenses to set up at the end of the period

(month, trimester, year) for litigations, for the dismantling of property, plant and

equipment, for collaterals granted to customers, for obligations toward manpower and

other obligations;

the adjustments for impairment of property, plant and equipment and intangible assets. At

the end of each reporting period, the Company estimates whether there are

indications of impairment. If such signs are identified, the recoverable amount of the

asset is estimated to determine the extent of impairment (if any).

the lifetimes of property, plant and equipment and intangible fixed assets. The Company

reviews the estimated life of the tangible and intangible fixed assets at least at the end of

each financial year to determine their adequacy.

the stocks of raw materials and materials requiring the setting up of depreciation

deferred taxes.

Disclosure of information

The Company will, to the extent practicable, disclose the nature and value of a change in an

accounting estimate that is effective in the current period/future periods.

Errors may arise in the recognition, evaluation, presentation or description of items in the

financial statements.

The Company retroactively corrects the significant errors of the prior period in the first set

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

restating the comparative values for the prior period presented in which the error

if the error occurred before the prior period presented, by restating the opening balances

of assets, liabilities and equity for the prior period presented.

AEROSTAR S.A. BACĂU

NOTES TO THE COMPANY FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

(unless specified otherwise, all amounts are stated in thousand lei

NOTE 2 - ACCOUNTING ESTIMATES, ASSUMPTIONS AND

JUDGEMENTS (continued)

In case of identifying an error, the Company presents the following information:

- the nature of the error for the previous period;

for each previous period presented, to the extent possible, the correction value:

for each affected line item in the financial statement;

for basic and diluted earnings per share.

the correction value at the beginning of the first previous period presented;

if retrospective restatement is impracticable for a specific prior period, the

circumstances leading to the existence of that condition and a description of how and

when the error was corrected.

2.3. Changes in the accounting policies

Changes to the accounting policies are only permitted if they are requested by IFRS or if

they result in more relevant or reliable information about the Company’s operations.

The Company modifies an accounting policy only if such change:

- is required by an IFRS; or

- results in financial statements that provide reliable and more relevant information with

reference to the effects of the transactions, of other events or conditions on the financial

performance or cash flows of the entity.

Application of changes in the Accounting Policies:

- the entity takes into account a change in the accounting policy that results from the initial

implementation of an IFRS in accordance with the specific transitory provisions, if any, of

- at the initial application of an IFRS that does not include specific transitory provisions.

Disclosure of information

When the initial application of an IFRS has an effect on the current or prior period of time, the

Company discloses in the explanatory notes the following:

the title of IFRS;

the nature of the accounting policy change;

when applicable, the fact that the change is made as an effect of the transitory

dispositions and a description of these transitory provisions;

for the current period and for each prior period, the sum of adjustments for each affected

element of the statement of the financial position, to the extent possible.

When it is impossible to determine the specific effects for one or more prior accounting periods,

the Company will apply the new accounting policy of assets and liabilities for the first period for

which the retroactive application is possible, which may also be the current period.

When a voluntary change in the accounting policy has an effect on the current or prior period,

the Company discloses in the explanatory notes:

- the nature of the change of accounting policy;

- the reasons for which the application of the new accounting policy provides more reliable

and relevant information;

- for the current period and for each prior accounting period, the estimated sum of

adjustments for each affected item of the statement of the financial position, insofar as

AEROSTAR S.A. BACĂU

NOTES TO THE COMPANY FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

(unless specified otherwise, all amounts are stated in thousand lei

NOTE 3 - ACCOUNTING AND EVALUATION PRINCIPLES

3.1. Bases for the preparation and presentation of the financial statements

The individual financial statements of Aerostar S.A. are prepared in accordance with the

the International Financial Reporting Standards (IFRS) adopted by the European Union;

Changes in accounting policies and adoption of revised/amended IFRS:

The changes take effect for the annual reporting periods beginning on or after 1 January 2024.

Standards ( Changes to Standards) and interpretations adopted by the

International Accounting Standards Committee:

1. Amendments to IAS 1 "Presentation of Financial Statements". The amendments are

designed to promote consistency in the application of the requirements of IAS 1 by

helping to determine whether, in the statement of financial position, the liabilities and

other obligations with an uncertain settlement date should be classified as current or non-

current. It also clarifies how this classification is affected by the existence of contractual

clauses (covenants);

2. Amendments to IFRS 16 ’Leases’ which are intended to improve the requirements that a

seller-lessee uses in measuring lease liabilities arising from a sale and leaseback

transaction under IFRS 16;

3. Amendments to IAS 7 and IFRS 7 introducing disclosure requirements for vendor

financing arrangements. The amendments require an entity to disclose in the notes to the

financial statements the terms of vendor financing arrangements. In addition, entities are

required to disclose in the explanatory notes at the beginning and end of the reporting

period the recorded amounts of vendor financing arrangements and the line items in which

those liabilities are disclosed, as well as the recorded amounts of financial liabilities for

which the related trade liabilities have been settled by the factors (financiers).

These changes did not have a material impact on the Company’s Financial Statements.

European Sustainability Reporting Standards (ESRS) adopted by the European

The Delegated Regulation (EU) 2023/2772 of the Commission of 31 July 2023

supplementing the Directive 2013/34/EU of the European Parliament and of the Council as

regards sustainability reporting standards requires large companies, small and medium-sized

companies with securities admitted to trading on regulated markets in the EU and parent

companies of large groups to include in a dedicated section of the directors’ report or the

consolidated directors’ report the information

AEROSTAR S.A. BACĂU

NOTES TO THE COMPANY FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

(unless specified otherwise, all amounts are stated in thousand lei

NOTE 3 - ACCOUNTING AND EVALUATION PRINCIPLES (continued)

needed to understand the Company’s impact on sustainability matters. This should also

include the information needed to understand how sustainability matters affect the

Company’s development, performance and position. Companies should prepare this

information in accordance with the sustainability reporting standards. Aerostar S.A. must

apply these sustainability reporting standards for the financial year beginning 1 January

The following changes are effective for annual reporting periods beginning on or after January 1,

2025, subject to adoption by regulation by the European Commission. The Company is evaluating

the potential effects of the new Standards and amendments to the International Financial

Reporting Standards.

1. IFRS 18 ’Presentation and Disclosure in the Financial Statements’ . IFRS 18

includes requirements for all entities that apply IFRS on the presentation and reporting

of information in financial statements. The standard will replace IAS 1 and introduces

significant changes aimed at improving the comparability and transparency of financial

performance reporting. If adopted, the standard is planned to be effective for annual

reporting periods beginning on or after January 1, 2027;

2. IFRS 19 ’Subsidiaries without Public Accountability’ - IFRS 19 specifies the

reporting obligations that an eligible subsidiary has in place of the reporting

requirements in IFRS;

3. Amendments to IAS 21 ’Accounting for Foreign Currency Transactions’ clarifying

when a currency is deemed to be exchangeable into another currency and how an

entity estimates a spot rate for non-exchangeable currencies;

4. Amendments to IFRS 9 and IFRS 7 on Classification and Measurement of Financial

Instruments. The amendments address issues identified during the post-implementation

review of the classification and measurement requirements in IFRS 9 Financial

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

O.M.F.P. no. 881/2012 on the application of International Financial Reporting Standards

by companies whose securities are admitted for trading on a regulated market;

O.M.F.P. no. 2.844/2016 on the approval of the Accounting Regulations conforming to the

International Financial Reporting Standards, as subsequently amended and supplemented;

OM.F.P. no. 2.861/2009 on the approval of the Norms regarding the organization and

performance of the inventory of items such as assets, liabilities and equity;

O.M.F.P. no. 1.826/2003 on the approval of the Explanatory Memorandum regarding

certain organizational and leading measures for management accounting;

O.M.F.P. no. 2.634/2015 on the financial accounting documents, as subsequently amended

and supplemented.

AEROSTAR S.A. BACĂU

NOTES TO THE COMPANY FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

(unless specified otherwise, all amounts are stated in thousand lei

NOTE 3 - ACCOUNTING AND EVALUATION PRINCIPLES (continued)

The accounting is kept in Romanian and in the national currency. The accounting of operations

carried out in foreign currency is kept both in national currency and in foreign currency. The

financial year is the calendar year. Financial statements are drawn up and reported in thousands of lei

and all values are rounded to the nearest thousand lei. Due to rounding, the numbers presented do not

always accurately reflect the totals provided and the percentages do not always accurately reflect

absolute figures.

The financial statements are drawn up on the basis of historical cost.

The financial statements are presented in accordance with the requirements of IAS 1 Presentation of

Financial Statements . The Company has opted for a presentation by nature and liquidity within the

statement of financial position and a presentation of income and expenses by nature within the

statement of profit or loss, considering that these methods of presentation provide information that is

relevant to the Company’s situation.

3.2. Accounting policies applied

Aerostar SA describes the accounting policies it applies in the notes to the individual

financial statements and avoids repeating the text of the standard unless it is considered

relevant to the understanding of the contents of the note.

The most significant accounting policies are presented below:

Accounting Policies regarding property, plant and equipment

The Company has chosen as its accounting policy the cost model. After recognition as an asset,

property, plant and equipment is accounted for at cost less accumulated depreciation and any

accumulated impairment losses.

The depreciable amount is allocated on a systematic basis over the useful life of the asset and

represents the cost of the asset less the residual value.

Given the specific nature of the business and the types of fixed assets in the Company assets, the

residual values of the fixed assets were considered to be insignificant. In practice, the residual

value has been calculated at the level of the countervalue of recoverable scrap metal, after

deduction of dismantling, disassembly and sale expenses.

The depreciation methods and useful lifetimes are reviewed at least at the end of each financial

year and adjusted accordingly. The useful lifetimes are determined by committees made up of the

Company’s specialists. Any change to them is accounted for prospectively.

Subsequent expenditures related to an item of property, plant and equipment are added to the

carrying amount of the asset when:

- they result in an improvement of the initial technical parameters;

- they are sources of future economic benefits materialised by additional cash flows in excess

of those originally estimated; and

- they can be measured reliably.

Benefits are obtained directly by increasing the revenues and indirectly by reducing the

maintenance and operating costs.

All other repair and maintenance expenses made to ensure the continued use of the property, plant

and equipment are recognised in the statement of profit or loss when they are made. They are

made in order to maintain the initial technical parameters.

AEROSTAR S.A. BACĂU

NOTES TO THE COMPANY FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

(unless specified otherwise, all amounts are stated in thousand lei

NOTE 3 - ACCOUNTING AND EVALUATION PRINCIPLES (continued)

The spare parts are generally accounted for as inventories and recognised as expenses when used up. If

the spare parts and service equipment, having significant values, can only be used in connection with

an item of property, plant and equipment, they are recognised as property, plant and equipment if the

original purchase value (when put into service) of the replaced part can be determined.

In deciding whether to recognise separate components, each case is analysed individually based

on professional reasoning.

The property, plant and equipment under construction to be used in production or administrative

activities is presented in the statement of financial position at cost less any accumulated

impairment loss. Such assets are classified in the respective categories of property, plant and

equipment when they are completed and ready for use in the manner intended by management for the

stated purpose.

The top management of the Company has set a ceiling for the capitalization of assets of 2.500 lei.

All acquisitions below this amount will be considered as expenses of the period.

Exceptions: Computers are considered to be depreciable property, plant and equipment

irrespective of their entry value and will depreciate over their useful lifetime as determined by the

Receiving Committee. Furthermore, the work tools and devices are accounted for as inventories

and recognised as expenses of the period when they are used up, irrespective of their entry value,

taking into account the fact that they have a useful lifetime of normally less than one year as well as

their degree of specialisation (they are intended to be used for a specific type of

product/service).

In the case of internally generated intangible assets, the implementation phases are clearly

separated, namely:

Research phase. Research costs are treated as expenses of the period;

Development phase. Development costs are recognised as an intangible asset if the

following conditions are demonstrated:

- technical feasibility of completing the asset so that it is available for use or sale;

- availability of adequate resources - technical, financial, human - to complete the

- intention to complete and use or sell the intangible asset;

- ability to use or sell the asset;

- how the asset will generate future economic benefits;

- ability to assess the costs.

If the Company cannot distinguish between the research and the development phase of an internal

project to create an intangible asset, the Company shall treat the costs of the project as incurred

exclusively in the research phase.

The Company has chosen as its accounting policy the cost model that requires intangible assets to be

valued at net book value equal to their cost less the accumulated depreciation and any

impairment losses recorded in relation to those assets.

An investment property is initially valued at cost, including any other directly attributable

expenses. After the initial recognition, the Company has opted for the cost-based model for all its

investment property in accordance with the provisions of IAS 16 for that model.

Transfers to and from the investment property category are made if and only if there is a change in

Transfers between categories do not change the carrying amount of the property transferred, nor

do they change the cost of that property for the purpose of assessment or disclosure.

AEROSTAR S.A. BACĂU

NOTES TO THE COMPANY FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

(unless specified otherwise, all amounts are stated in thousand lei

NOTE 3 - ACCOUNTING AND EVALUATION PRINCIPLES (continued)

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

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

- Shares held in affiliated companies;

- Other non-current securities;

- Long-term loans and the interest thereon. This category includes amounts granted to third

parties under contracts on which interest is charged in accordance with the law;

- Other fixed receivables and related interest. This category includes collaterals, deposits and

securities deposited with third parties, and claims relating to leasing contracts.

Financial fixed assets are classified on initial recognition as subsequently valued at amortised

cost, fair value through other comprehensive income (OCI) or fair value through profit or loss, as

The classification of financial assets on initial recognition depends on the contractual cash

flow characteristics of the financial asset and the entity’s business model for managing them.

• Accounting policies for inventory items

The entry of inventories is recorded in the accounts at the date of transfer of the risks and benefits.

The calculation of those stocks which are not usually fungible and of those goods, products or

services is determined by specifically identifying their individual costs.

When stocks and fungible assets are disposed of, they are valued and entered in the accounts

using the FIFO method.

Periodically, the Company’s management approves the level of normal technological losses.

Inventory accounting is kept quantitatively and by value, using the perpetual inventory method.

Value adjustments are made for current assets in the form of inventories for each reporting period,

based on the maturity of the inventories, the findings of the inventory committees and/or profit

centre managers, in order to present the assets at the lower of cost and net realizable value.

• Accounting policies on company liabilities

The Company’s liabilities are recorded in the accounts payable. Accounts payable to suppliers and

other payables shall be kept by category and by individual natural or legal person.

Income tax payable/receivable is recognised as a liability to the extent of the amount unpaid. Excise

duties and special funds included in prices or tariffs are entered in the accounts on the

corresponding accounts payable without going through the revenue and expenditure accounts.

Operations which cannot be recorded separately in the corresponding accounts and for which

further clarification is required are recorded in a separate account 473 "Settlement of operations

awaiting clarification".

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

AEROSTAR S.A. BACĂU

NOTES TO THE COMPANY FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

(unless specified otherwise, all amounts are stated in thousand lei

NOTE 3 - ACCOUNTING AND EVALUATION PRINCIPLES (continued)

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

it is expected to be settled in the normal course of the Company’s operating cycle, or

it is due within 12 months after the balance sheet date.

All other liabilities are classified as long-term liabilities.

Liabilities that are due in more than 12 months are long-term liabilities.

They are also considered long-term interest-bearing liabilities even when they are due within 12

months of the date of the financial statements if:

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

b) there is a refinancing or rescheduling agreement that is entered into before the date of the

financial statements.

• Accounting policies for company receivables

Receivables include:

- trade receivables, which are amounts due from customers for goods sold or services

rendered in the normal course of business;

- trade notes to be collected, instruments of third parties;

- amounts due from employees or affiliated companies;

- advance payments to suppliers of trial assets, goods and services;

- receivables related to staff and the State budget.

Receivables are recorded on an accrual basis, in accordance with the legal or contractual

Customer accounts are kept by category (internal customers, services and products, and external

customers, services and products) and by individual natural or legal person.

Receivables in foreign currency, resulting from the Company’s transactions, are recorded in the

accounts both in lei and in foreign currency.

Transactions in foreign currency are initially recorded at the exchange rate communicated by the

National Bank of Romania on the date of the transaction.

The derecognition of time-barred debts shall be carried out only after all legal steps have been

taken to settle them.

Doubtful receivables shall be entered separately in the accounts in account 4118 Doubtful

customers when the due date laid down in the contract has been exceeded by more than 30 days or a

dispute has arisen with the customer.

In the annual financial statements, receivables are valued and stated at their probable collectible

When a receivable from a customer has not been collected in full when due as stated in the

contract, an allowance for impairment is recorded at the times and percentages approved by the

Board of Directors in the Accounting Policy Manual.

• Accounting policies on revenue recognition

Revenue is recognised in the Company’s profit or loss statement when an increase in future

economic benefits associated with an increase in an asset or a decrease in a liability can be

measured reliably. As a result, revenue recognition occurs simultaneously with the recognition of an

increase in assets or a decrease in liabilities.

AEROSTAR S.A. BACĂU

NOTES TO THE COMPANY FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

(unless specified otherwise, all amounts are stated in thousand lei

NOTE 3 - ACCOUNTING AND EVALUATION PRINCIPLES (continued)

Revenue includes both amounts received or receivable on own account and gains from any

Revenue is classified as follows:

Revenue from operations;

Financial revenue;

Revenue is recognised on an accrual basis.

Synthetic revenue accounts are developed on analytical accounts, according to the accounting

regulations in force (general chart of accounts) and according to the Company’s own needs,

approved by the Company’s top management.

Revenue is valued at the fair value of the consideration received or receivable. Sales revenue is

diminished for returns, trade discounts and other similar rebates.

Revenue from operations includes:

- revenue from sales related to contracts with customers (of goods, services, merchandise,

residual products);

- income related to the cost of stocks of products;

- income from the production of fixed assets;

- income from the reversal of asset adjustments or from the reduction or reversal of

- other revenue from operations.

Revenue from contracts with customers is recognised in accordance with IFRS 15 ’Revenue from

contracts with customers’. A customer is a party that has entered into a contract with the Company to

obtain goods and services arising from the Company’s regular activities.

Revenue recognition describes the transfer of control over goods and services to customers, and the

measurement of revenue reflects the consideration to which the Company expects to be entitled

in exchange for those goods and services.

Such control includes the ability to prevent other entities from determining the use of the asset and

deriving benefit from it. The benefits of an asset are the potential cash flows that can be obtained

directly or indirectly from using, selling or holding the asset.

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

1. Identifying the contract with a customer

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

a) the parties have approved the contract and agree to honour their obligations,

b) the Company can identify the rights of each party with respect to the goods and services

c) the Company can identify the terms of payment for the goods and services transferred,

d) the contract has commercial substance (i.e. it changes the risk, timing and amount of the

entity’s future cash flows)

AEROSTAR S.A. BACĂU

NOTES TO THE COMPANY FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

(unless specified otherwise, all amounts are stated in thousand lei

NOTE 3 - ACCOUNTING AND EVALUATION PRINCIPLES (continued)

e) it is probable that the Company will collect the consideration to which it is entitled in

exchange for the goods and services transferred to the customer. This involves assessing the

customer’s ability and intention to pay the consideration when due.

2. Identification of obligations arising from the contract

A contract includes obligations to transfer goods or services to a customer. An obligation to

transfer a good or service is separable if it satisfies all of the following conditions:

(a) the customer can benefit from the transferred good or service separately or in combination

with other resources at its disposal; and

(b) the entity’s promise to transfer the good or service to the customer is identifiable separately

from other promises in the contract.

The Company has not identified any types of contracts with separable obligations. In the case of

performance guarantees, they are not an additional service and as such they do not represent a

separate obligation.

3. Determination of the transaction price

The Company must determine the amount of consideration to which it expects to be entitled in

exchange for the goods and services promised in the contract in order to recognise revenue. The

price may be a fixed amount or it may vary due to discounts or other similar items.

The price of the Company’s sales transactions is not adjusted for the effect of the time value of

money as the Company does not have any supply contracts with a settlement term in excess of one

year or containing a significant financing component.

For contracts entered into by the Company, the price is negotiated and remains firm. Renegotiated

contract amendments are effective prospectively from the date of renegotiation for subsequent

orders, considering that the performance obligation is separate and not part of a single

performance obligation that is partially fulfilled at the date of the contract amendment.

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

If a contract contains several separate obligations, the Company allocates the transaction price to

each obligation in proportion to its individual price. The best record for the price of each

individual obligation is the price for which the good or service is sold separately by the entity.

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

A contract obligation is met when the control of the goods or services is transferred to the

customer. The control is the ability to decide the use and obtain the majority of the remaining

benefits of the transferred good or service.

The standard establishes how the revenue is to be determined, in that it must be recognised at a

specific point in time or over a period of time, which applies to both the sale of goods and the

rendering of services.

An obligation is met and revenue is recognised over a period of time if at least one of the

conditions below is met:

AEROSTAR S.A. BACĂU

NOTES TO THE COMPANY FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

(unless specified otherwise, all amounts are stated in thousand lei

NOTE 3 - ACCOUNTING AND EVALUATION PRINCIPLES (continued)

- the customer receives and consumes the benefits of the service performed by the entity as

the entity performs,

- the performance by the entity creates or improves an asset (for example, work in progress)

that the customer controls as the asset is created or improved,

- the entity’s performance does not create an asset with an alternative use for the entity and

the entity has an enforceable right to payment for performance to date.

If a performance obligation is not fulfilled over time, an entity fulfils the performance obligation

at a specific point in time.

If the Company reasonably expects that the effects on the financial statements for a portfolio of

customers with similar characteristics will not be materially different from those determined by

applying the standard to individual contracts within that portfolio, then the contracts are analysed

The timing of revenue recognition results from correlating the specific contract provisions with

the provisions of IFRS 15.

Rental income from investment property is recognised in the profit and loss account on a straight-

line basis over the term of the lease in accordance with IFRS 16.

Finance income comprises interest income, foreign exchange income, dividend income and other

finance income.

Interest income is recognised in the income statement on an accrual basis using the effective

interest method. Interest income arising on a financial asset is recognised when it is likely that an

economic benefit will be obtained by the Company and when that benefit can be measured

Dividend income from investments is recognised when the shareholder’s right to receive payment

has been established. The Company records dividend income on a gross basis including dividend tax

(when applicable), which is recognised as a current expense.

• Accounting policies on provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a

result of a past event, it is likely that the Company will be required to settle the obligation and a

reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the

present obligation at the end of the reporting period, taking into account the risks and

uncertainties associated with the obligation.

Provisions are accounted for by type, depending on the nature, purpose or object for which they

Provisions for guarantees

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

AEROSTAR S.A. BACĂU

NOTES TO THE COMPANY FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

(unless specified otherwise, all amounts are stated in thousand lei

NOTE 3 - ACCOUNTING AND EVALUATION PRINCIPLES (continued)

The value of the provision for warranties granted is based on historical, contractual or reasonable

estimates for products/services first performed in the Company.

Provisions for risks and charges

When risks and expenses are identified which are likely to be incurred as a result of events that

have occurred or are in progress and the purpose of which is precisely determined but the

realisation of which is uncertain, the Company covers these risks by making provisions. Provisions

for risks and charges are set aside for items such as risks specific to the aviation industry,

litigation, fines, penalties, indemnities, damages and other uncertain liabilities.

Provisions for the decommissioning of tangible fixed assets

On initial recognition of an item of property, plant and equipment, an estimate is made of the

costs of dismantling, removing the item and restoring the site where it is located as a consequence of

using the item over a period of time.

These costs are reflected by setting aside a provision, which is recognised in the profit and loss

account over the life of the item of property, plant and equipment by inclusion in the depreciation

The revision of the estimates for the provision for decommissioning and restoration is determined by

the annual review of the dismantling costs. The Company’s committee of experts appointed by

internal decision periodically reviews whether the initial estimates of dismantling costs are

Provisions for employee benefits

Provisions are recognized for employee benefits granted in accordance with the applicable

Collective Labour Agreement, if and only if:

- the entity has a legal and constructive obligation to make such payments as a result of past

- a reliable estimate of the obligation can be made.

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

• Accounting policies for subsidies and other non-reimbursable funds

Subsidies distinctly feature:

-government subsidies;

- non-reimbursable loans as subsidies;

-other amounts received as subsidies.

Subsidies are recognised at their approved amount. Subsidies received in the form of non-

monetary assets are recognised at fair value.

Government subsidies are initially recognised as deferred revenue at fair value when there is

reasonable assurance that it will be received and the Company will comply with the conditions

associated with the subsidy.

Subsidies that compensate the Company for expenses incurred are recognised in the income

statement on a systematic basis in the same periods in which expenses are recognised. Subsidies

that compensate the Company for the cost of an asset are recognised in the income statement on a

systematic basis over the life of the asset.

Subsidies related to income are recognised, on a systematic basis, as income in the periods

corresponding to the related expenses that these subsidies are intended to compensate.

AEROSTAR S.A. BACĂU

NOTES TO THE COMPANY FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

(unless specified otherwise, all amounts are stated in thousand lei

NOTE 3 - ACCOUNTING AND EVALUATION PRINCIPLES (continued)

If subsidies are received in a period in relation to expenditure that has not yet been incurred, the

subsidies received are not income of that current period. They are recognised in the accounts as

deferred income and reversed to the profit and loss account as the expenses they compensate are

• Accounting policies regarding the production of goods and services

applicable legal

The organizing of Aerostar SA’s management accounting is based on the

provisions and the manual of work procedures and instructions specific

accounting, adapted to the specific activity of the Company.

The object of management accounting consists in:

- the collection of direct, indirect and ancillary costs according to their nature;

- the allocation of indirect costs;

- settlement of direct and indirect costs.

The main purpose of management accounting is to establish the result by production or service

order and by organisational structure.

According to the accounting regulations, the cost of goods, works and services performed does not

include the following items which are recognised as expenses of the period in which they are

(a) losses of materials, labour or other production costs relating to scrap and sub-activity

(b) general administrative expense.

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

This method is suitable for individual and series production. The object of recording and

calculating costs under this method is the order placed for a given quantity (batch) of products.

Production costs are collected for each individual order directly (direct orders) or by allocation

(indirect orders).

The actual cost per unit of product is calculated upon completion of the order by dividing the

production costs collected on the related order by the quantity of products manufactured on that

Orders are released at the planned price, as appropriate.

In the case of orders related to export sales, the price is expressed in lei by converting the

currency at the budgeted exchange rate.

In the application of accounting policies, the Company issues work procedures, orders and

instructions, approved by the executive management.

AEROSTAR S.A. BACĂU

NOTES TO THE COMPANY FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

(unless specified otherwise, all amounts are stated in thousand lei

NOTE 4 – TRANSACTIONS IN FOREIGN CURRENCIES

AEROSTAR considers the Romanian LEU as the functional currency and the financial statements are

presented in thousand LEI.

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

the transaction.

On the date of the Financial Position Statement, the assets and financial liabilities denominated in

foreign currency are evaluated in the functional currency using the exchange rate, communicated by

the Romanian National Bank, valid at the end of the financial year:

1 USD (American Dollar)

1 GBP (British pound)

The favourable and unfavourable exchange rate differences resulting from the settlement of the assets

and financial liabilities denominated in foreign currency are recognized in the Profit or Loss

Statement for the financial year in which they occur.

Considering that 79% of the turnover registered in the reporting period is denominated in USD and

EUR, while a significant part of the operating costs is denominated in LEI, the foreign exchange rate

variations will affect both its net income and its financial position as expressed in the functional

In the reporting period, the net currency exposure resulted as a difference between the amounts

collected from the financial assets and the payment of the financial liabilities denominated in that

currency is as follows:

Foreign exchange net exposure

Amounts collected from financial assets

Payments of financial liabilities

AEROSTAR has opted not to access currency hedging products (options, forwards) due to the

relatively high initial costs and the possibility of losing opportunities in case of depreciation of RON

against the main currencies (USD, EUR).

In 2024, AEROSTAR recorded gains of 2.179 thousand LEI from exchange rate differences,

determined by the average depreciation of the LEU against the USD by 2,30% compared to the

beginning of the year.

AEROSTAR S.A. BACĂU

NOTES TO THE COMPANY FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

(unless specified otherwise, all amounts are stated in thousand lei

NOTE 5 - INTANGIBLE ASSETS: reporting period 31 December 2024

Other intangible assets

Values on 31 December 2024 Values on 1 January 2024

Net book value on 31.12.2024 and transactions during the period:

Entries at gross

during the period

31 December 2024

Other intangible assets

AEROSTAR S.A. BACĂU

NOTES TO THE COMPANY FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

(unless specified otherwise, all amounts are stated in thousand lei

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

COMPARATIVE FIGURES - INTANGIBLE ASSETS: reporting period 31 December 2023

Other intangible assets

Values on 31 December 2023 Values on 1 January 2023

Net book value on 31.12.2023 and transactions during the period:

Entries at gross

during the period

31 December 2023

Other intangible assets

AEROSTAR S.A. BACĂU

NOTES TO THE COMPANY FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

(unless specified otherwise, all amounts are stated in thousand lei)

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

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

• Other intangible assets

The software programmes are registered under other intangible assets.

The useful lifetimes for the intangible assets are established in years, based on the period of the contract or the service life, as the case may be. The

useful lifetime of the licenses and software purchased or generated internally is 3 years.

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

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

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

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

5.978 thousand lei.

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

The entries of intangible assets were made by:

optimization of production management IT system - version 3

purchase of software licences

1.030 thousand lei

146 thousand lei

884 thousand lei

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

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

AEROSTAR S.A. BACĂU

NOTES TO THE COMPANY FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

(unless specified otherwise, all amounts are stated in thousand lei

NOTE 6 – PROPERTY, PLANT AND EQUIPMENT: reporting period 31 December 2024

on 1 January 2024

Gross value inputs

(reclassifications)

Gross value outputs

(reclassifications)

Amortization during

Other equipment and office equipment

Investment property

Property, plant and equipment under

Other equipment and

office equipment

Property, plant and

equipment under

Net book value on 31.12.2024 and transactions during the period:

Technological equipment and vehicles

Values on 31 December 2024 Values on 1 January

Technological equipment

T otal tangible fixed assets

Investment property

AEROSTAR S.A. BACĂU

NOTES TO THE COMPANY FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

(unless specified otherwise, all amounts are stated in thousand lei

Other equipment and

office equipment

Property, plant and

equipment under

T otal tangible fixed assets

Investment property

Gross value inputs

during the period

NOTE 6 – PROPERTY, PLANT AND EQUIPMENT

: reporting period 31 December 2024

COMPARATIVE FIGURES - PROPERTY, PLANT AND EQUIPMENT: reporting period 31 December 2023

Values on 31 December

Values on 1 January

Technological equipment

Net book value on 31.12.2023 and transactions during the period:

Gross value outputs

Technological equipment and vehicles

Other equipment and office equipment

Investment property

Property, plant and equipment under

AEROSTAR S.A. Trial

NOTES TO THE COMPANY FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

(unless specified otherwise, all amounts are stated in thousand lei

NOTE 6 – PROPERTY, PLANT AND EQUIPMENT (continued)

Property, plant and equipment are valued at acquisition or production cost less accumulated

depreciation and impairment losses.

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

Amortization expenses are recognized in the profit and loss statement.

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

- constructions 30-50 years

- technological equipment

- other property, plant and equipment

- investment property 25-50 years

The useful lifetimes are established by committees consisting of specialists from the Company. The

useful lifetimes of the property, plant and equipment are stipulated by the fiscal legislation on assets.

The Company did not purchase assets from business combinations, nor did it classify assets for

The investment property contains a number of 13 real estate – buildings that are rented to third

parties based on renting contracts.

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

On the date of transition to IFRS, the Company estimated and included in the cost of the property,

plant and equipment the estimated costs for their decommissioning at the end of a useful lifetime.

These costs were reflected in the setting aside of a provision, which is recorded in the profit and loss

account throughout the lifetime of the property, plant and equipment, by inclusion in the

amortization expense.

This expense is not tax deductible.

The amortization of an asset begins when the asset is available for use and ends on the day when the

asset is reclassified in another category or when it is derecognized.

The amortization does not end when the asset is not in use.

The land and buildings are separable assets, and their accounts are kept separately, even when they

are acquired together.

The land has an unlimited useful life and therefore does not depreciate.

The value of land owned by Aerostar SA is presented at acquisition cost, i.e. the assumed cost that

was recorded at the date of transition to IFRS.

In accordance with the provisions of IAS 36 - Impairment of assets, the Company proceeded to the

identification of any signs of impairment of property, plant and equipment, taking into account the

external and internal sources of information.

Internal sources of information:

The economic performance of the assets is good, all fixed assets that are in operation benefit the

AEROSTAR S.A. BACĂU

NOTES TO THE COMPANY FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

(unless specified otherwise, all amounts are stated in thousand lei

NOTE 6 – PROPERTY, PLANT AND EQUIPMENT (continued)

External source of information:

The indicator that provides information regarding the investors’ interest in the companies listed on

the capital market is the market capitalization to equity ratio (MBR).

indicator MBR-Market to book ratio

Stock exchange capitalization/ company equity

The over-unit value of the MBR indicator is obtained by companies well-listed on the capital market

and that are of interest to the investors.

Tangible fixed assets outstanding on 31.12.2024 are not impaired and no significant impairment

indicators have been identified.

The gross accounting value of the fully amortized property, plant and equipment still in operation on

31 December 2024 is 98.990 thousand lei.

On 31.12.2024 no mortgages were set on the fixed assets owned by Aerostar S.A.

Entries of property, plant and equipment, achieved by:

commissioning of technical equipment, hardware equipment, measuring

and control equipment

building modernization work

property, plant and equipment under construction during the period

reclassification of the building into investment property following rental

Outflows of property, plant and equipment, achieved by:

transfer of property, plant and equipment as a result

of the commissioning thereof

derecognition of property, plant and equipment because the Company no

longer expects future economic benefits from their use

reclassification of the building into investment property following rental

AEROSTAR S.A. BACĂU

NOTES TO THE COMPANY FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

(unless specified otherwise, all amounts are stated in thousand lei

NOTE 7- FIXED FINANCIAL ASSETS

affiliated entities

On 1 January 2024

Increases/Decreases

contributions to

receivables –

On 31 December 2024

Total net value decreases

On 31.12.2024 the decrease in value related to other fixed assets - shares amounts to (11.599) thousand lei and consists of:

Fair value revaluation of Evergent Value of shares sold between January and

Investments S.A. shares December 2024

7.890 (19.489) 11.599

A) Investments in affiliated entities registered under cost:

Subsidiary name/ CAEN Code

Registered head office

Financial information

related to the year 2023

profit value/share

(k lei) (k lei)

Airpro Consult SRL Bacău - main 100

9, Condorilor Street activity

Foar SRL Bacău - main 408

9, Condorilor Street activity

AEROSTAR S.A. BACĂU

NOTES TO THE COMPANY FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

(unless specified otherwise, all amounts are stated in thousand lei

NOTE 7- FIXED FINANCIAL ASSETS (continued)

Aerostar’s shareholdings in the affiliated companies are recorded at cost.

On 31.12.2024, the Company recorded no modifications i.e. no increases/decreases as to the shareholding percentage, maintaining the same

influence as in 2023 on the remaining companies in the equity portfolio.

Both companies in which AEROSTAR holds shares are registered in Romania.

B) Investments in equity instruments through other elements of global result:

Value of portfolio at

market price (k

Issuer’s name

Registered head office

31.12.2024 (lei)

Evergent Investments S.A. - main activity

94C, Pictor Aman Street, Bacău CAEN code

31.342.883 EVER 1,4700

On 31 December 2024, the company held 31.342.883 shares of the company Evergent Investments S.A, listed at the Bucharest Stock

Exchange. Aerostar records the shares held at fair value through other comprehensive income, in accordance with IFRS 9 “Financial

Instruments”. The Company has used the irrevocable option to designate these equity instruments at fair value through other comprehensive

income as these financial assets are held both for the collection of dividends and for gains on their sale and not for trading. The gain or loss on

these equity instruments is recognised in other comprehensive income, except for the dividend income.

C) Cash contribution to the establishment of the initial patrimony of the association "Cluster of education for sustainable

development C-EDD "

The association was established voluntarily by the founding members, operating as a Romanian legal person of private law without

patrimonial purpose. The association is non-governmental, non-political, non-profit and independent, not subordinated to any other legal

The purpose of the Association is to develop and implement effective mechanisms for public-private dialogue in the field of education, to act as a

space for dialogue and collaboration between the main actors involved in education, to elevate the quality of educational processes and to

connect lifelong learning with the economic environment in order to provide it with qualified human resources for sustainable

development. The value of AEROSTAR’s contribution to the assets of the "Cluster of Education for Sustainable Development C-EDD" is

AEROSTAR S.A. BACĂU

NOTES TO THE COMPANY FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

(unless specified otherwise, all amounts are stated in thousand lei

NOTE 8 - TRADE RECEIVABLES

TRADE RECEIVABLES, of which:

Domestic customers

Foreign customers

Doubtful customers

Adjustments for impairment of receivables

Suppliers – debtors

TOTAL TRADE RECEIVABLES

In accordance with the provisions of the Accounting Policies Manual, to cover the non-recovery risk of

the amounts that represent the doubtful trade receivables, the company registers adjustments for the

depreciation of the doubtful customers as follows:

50% of the value of the receivables not collected on time if the due date is between 30 days and

180 days. On 31 December 2024, the company registered adjustments for depreciation of this

nature in the amount of 110 thousand lei;

100% of the amount of the receivables not collected on time, if the delay is more than 180

days. On 31 December 2024, the company had no impairment adjustments of this nature.

When determining the recoverability of a trade receivable, the changes considered were those

occurred in the customer ’ s credit rating from the time when the credit was granted till the date of

Supplier-debtors have a deadline for settlement in 2025.

The receivables denominated in foreign currency were evaluated at the market exchange rate

communicated by the National Bank of Romania valid for the end of December 2024.

The favourable and unfavourable exchange rate differences between the exchange market rate, for

which are accounted the receivables in currenc y , and the market exchange rate communicated by the

National Bank of Romania available for the end of December 2024 were recorded in the related

income or expense account.

AEROSTAR S.A. BACĂU

NOTES TO THE COMPANY FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

(unless specified otherwise, all amounts are stated in thousand lei

NOTE 9 – OTHER RECEIVABLES

Receivables related to manpower and similar

Receivables related to the budget of social

insurance and the state budget, of which:

Non-exigible VAT

Amounts to recover from the National Health

System (allowances on medical leaves)

Amounts in the form of subsidies

Excise duties to recover for the fuel used

Other receivables in relation to the local budget

Other receivables in relation to the social

security and state budget

Interest receivable from bank deposits

Impairment adjustments for receivables - sundry

TOTAL OTHER RECEIVABLES

- Other receivables in relation to the social security budget, state budget and local budget

represent amounts resulting from the submission of rectifying statements;

- Interest receivable relates to bank deposits held by the company at the end of the reporting

- Of the total other receivables, a share of 30% is represented by the amount of 2.360 thousand

lei, on account of the amounts settled but not collected from the Health House.

AEROSTAR S.A. BACĂU

NOTES TO THE COMPANY FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

(unless specified otherwise, all amounts are stated in thousand lei

NOTE 10 - INVENTORIES

Other materials

Semi-finished products

Finished products

Products and services in progress

Gross value of the inventory (unadjusted)

Value of impairment adjustments

Net (adjusted) value of inventories

ADJUSTMENTS FOR IMPAIRMENT OF INVENTORIES

Total adjustments

Adjustments for impairment of

Adjustments for impairment of

Adjustments for impairment of

semi-finished products

Adjustments for impairment of

finished products

Adjustments for impairment of

production in progress

The inventories are assessed at the lowest value between the cost and the net realisable value.

The net realisable value is the estimated sale price for inventories minus all estimated costs for

completion and the estimated costs required for the sale.

The cost of inventories includes: acquisition costs, conversion costs as well as other costs incurred to

bring inventories to the state and in the place where they are currently found.

Value adjustments are made regularly based on the findings of the inventory commissions and/ or the

module managers, in order to present them at the lowest value between the cost and the net realisable

Within the Company, the goods considered to be depreciated are those that are older than the storage

period established by internal decision of the Board of Directors.

In accordance with the Accounting Policy Manual, various adjustments are set up at Aerostar SA for

the inventory depreciation, as follows:

AEROSTAR S.A. BACĂU

NOTES TO THE COMPANY FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

(unless specified otherwise, all amounts are stated in thousand lei

NOTE 10 – INVENTORIES (continued)

- for raw material, consumables, semi-finished products and spare parts, different periods are

established, for each profit centre;

- for the inventories of finished products, depreciation adjustments are set up for each period, as

a) 100% of the value thereof, for inventories of this nature that do not rely on contracts with the

b) in variable percentages, as agreed with the profit centres involved, for the inventories of

unfinished products not delivered in due time as per the contractual provisions.

The total value of inventories recognized as an expense during the period is 264.474 thousand lei,

which consists of:

- 249.504 thousand lei representing the value of expenditure on stocks of materials;

- 13.451 thousand lei representing the value of expenditure relating to the consumption of water, gas

and electricity;

- 1.519 thousand lei representing the value of expenditure on non-stocked materials.

Aerostar S.A. holds stocks of finished (safety) products at the levels agreed in the contracts with its

Aerostar S.A. has no pledged stocks.

AEROSTAR S.A. BACĂU

NOTES TO THE COMPANY FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

(unless specified otherwise, all amounts are stated in thousand lei

NOTE 11 – CASH AND CASH EQUIVALENTS

The cash contains:

- cash available at the AEROSTAR cash desk;

- sight deposits held at banks (current accounts at banks).

The cash equivalents consist in:

- term deposits held at banks;

- cheques and commercial papers (promissory notes) deposited at banks for collection.

At the end of the reporting period the cash and cash equivalents consist in:

Cash at the cash desk

Sight deposits held at banks

Time deposits held at banks

Cash and cash equivalents

There are no restrictions on the current bank accounts and deposits held by banks.

The value of the Line of Credit usable as an overdraft, available for the future operating activity,

is 2.500 THOUSAND USD (the equivalent of 11.492 thousand lei).

The Line of Credit was not used during the reporting period.

AEROSTAR’s policy is to deposit the cash corresponding to the amount of the provisions set

aside. The balance of provisions on December 31, 2024 is 85.108 thousand lei.

Term deposits are set up for short terms (less than 6 months), as AEROSTAR prefers to have

easy access to savings. As a result, other alternatives for saving surplus cash such as for example

investments in investment funds are not favoured by AEROSTAR due to the investment risks

attached. Thus, in the short term, these investments may experience wide fluctuations due to

various conjunctural factors.

AEROSTAR’s opting to set up only short-term bank deposits is mainly due to the global

political and economic uncertainties, the deterioration of supply chains, given that at any time

events may occur that may require purchases of raw materials and safety materials.

AEROSTAR S.A. BACĂU

NOTES TO THE COMPANY FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

(unless specified otherwise, all amounts are stated in thousand lei

NOTE 12 – COMPANY EQUITY

The company equity on 31 December 2024 is 620.334 thousand lei. The net increase of the company

equity in 2024 compared to the end of the year 2023 amounted to 68.377 thousand lei.

Changes in equity elements in 2024 compared to 2023:

The share capital remained unchanged:

On 31 December 2024, the share capital of AEROSTAR SA Bacau is 48.728.784 lei, divided into

152.277.450 shares having a nominal value of 0,32 lei.

The reserves increased by 57.653 thousand lei:

An increase by 33.125 thousand lei as a result of the distribution of the profit made in 2023

to the destinations decided by the shareholders in the OGMS meeting of 18 April 2024;

An increase by 18.731 thousand lei on account of the distribution of the profit made in 2024

for reserves from fiscal facilities;

An increase by 7.890 thousand lei due to the revaluation at fair value of the Evergent

Investments S.A. shares;

A decrease by 2.449 thousand lei arising from the transfer to retained earnings of the

revaluation differences at fair value of the equity instruments recognised through other

comprehensive income following the sale;

an increase by 356 thousand lei due to the transfer to reserves of the retained earnings

representing the surplus made from the revaluation reserves.

Other equity elements decreased by the amount of 3.964 thousand lei on account of the

deferred income tax recognized in the company equity.

The result carried forward increased by 2.797 thousand lei as follows:

An increase by 225 thousand lei on account of the deferred income tax recognised on equity;

An increase by 2.928 thousand lei representing the net gain from the sale of equity

instruments recognised through other comprehensive income;

A decrease by 356 thousand lei due to the transfer to reserves of the retained earnings

representing the surplus made from revaluation reserves.

The balance of the retained earnings account on 31 December 2024 is 54.374 thousand lei,

Retained earnings arising from the use, at the date of transition to IFRS, of the fair value as

presumed cost = 26.238 thousand lei;

Retained earnings representing the gain from revaluation reserves, capitalised against the

depreciation of tangible fixed assets = RON 24.408 thousand;

Net realised gain on the sale of equity instruments recognised through other comprehensive

income = 3.728 thousand lei.

The result for the period was a profit in the amount of 95.725 thousand lei.

AEROSTAR S.A. BACĂU

NOTES TO THE COMPANY FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

(unless specified otherwise, all amounts are stated in thousand lei

NOTE 13 - PROVISIONS

Reclassification

42.540 370 34.726

Total provisions

Provisions for bonds granted to

Provisions for decommissioning

property, plant and equipment

Provisions for the employees’

Provisions for litigation

Other provisions

13.790 6.302 12.366

Long-term provisions

Provisions for bonds granted to

Provisions for decommissioning

property, plant and equipment

Other provisions

33.578 23.226 30.174

Short-term provisions

Provisions for bonds granted to

Provisions for customer’s benefits

8.252 9.246 8.252

Provisions for litigation

Other provisions

Reruns/ Differences 31

Reclassifica- from re- Dec.

tions of evaluation 2024

61.626 368 85.108

10.608 (2) 24.670

55.511 6.323 17.967

47.063 37.469 43.659

5.009 4.997 5.009

Provisions for customer warranties

Provisions for customer warranties are set up to cover the risk of non-conformity during the warranty period of

products sold and services rendered, in accordance with contractual provisions. The warranty period is

usually 24 months.

Provisions for decommissioning of property, plant and equipment

Provisions for the decommissioning of property, plant and equipment, mainly buildings, are set aside to cover

the costs of dismantling, removing items and restoring the sites where they are located and are included in

their cost. The value has been estimated using an annual discount rate of 6,5%.

Provisions for employee benefits

Provisions for employee benefits are set up for bonuses granted in accordance with the terms of the applicable

Collective Labour Agreement (end of financial year bonuses, performance bonuses) and for holiday leaves not

taken by employees in the previous year.

AEROSTAR S.A. BACĂU

NOTES TO THE COMPANY FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

(unless specified otherwise, all amounts are stated in thousand lei

NOTE 13 – PROVISIONS (continued)

Other provisions

The category Other provisions contains the provisions set aside for:

- covering risks specific to the aviation industry, such as: risk of hidden defects, risk of detecting quality

incidents that can incur damages.

- coverage of some expenses regarding the Company’s obligations towards A.J.O.F.M., based on O.U.G.

- covering certain risks related to the application by customers of delayed payment penalties and damages

associated with the production of aeronautical products;

During the period January - December 2024, the company recorded expenses related to the setting aside of

provisions in the amount of 30.484 thousand lei and income related to the write-offs/reductions of provisions in

the amount of 47.973 thousand lei, resulting in net income from adjustments to provisions in the amount of

17.489 thousand lei.

During this period, there were reclassifications of long-term provisions recognized in short-term provisions

(MDL 13.697 thousand lei).

AEROSTAR S.A. BACAU

NOTES TO THE COMPANY FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

(unless specified otherwise, all amounts are stated in thousand lei)

NOTE 14 - SUBSIDIES FOR INVESTMENTS IN ASSETS

AEROSTAR recognizes as deferred income the subsidies related to assets.

Balance on 31 December, of which:

Balance on 1 January, of which:

Subsidies received

Subsidies recorded in revenue

corresponding to the calculated

Long-term 724 1.550

The balance recorded on 31 December 2024 represents subsidies related to investments in fixed assets

to be recorded in income as the calculated depreciation is charged to cost.

The subsidies received in the previous years for the financing of assets were related to the

implementation of 4 investment projects under 4 non-reimbursable financing agreements:

1. Agreement no. 210304/22.04.2010: "Expansion of the manufacturing and assembly capacities

for aerostructures destined for civil aviation", executed in the period April 2010 - October 2012,

the value of the subsidy received from the Ministry of Economy, Trade and Business

Environment (MECMA) being 5.468 thousand lei, with 556 thousand lei remaining to be

recorded as revenue;

2. Agreement no. 229226/14.06.2012: " Setting up a new manufacturing capacity for diversification of

production and export growth", executed between June 2012 and May 2014, the value of the

subsidy received from the Ministry of Economy, Trade and Business Environment (MECMA)

being 6.011 thousand lei, while the amount of 41 thousand lei remains to be recorded as revenue;

3. Agreement no. 5IM/013/24.03.2015: "Consolidation and sustainable development of the

machining and painting sectors through high performance investments", executed between

March and December 2015, the value of the subsidy received from the Ministry of European

Funds (MFE) being 8.299 thousand lei, with 618 thousand lei to be recorded as revenue.

4. Financing contract no. 10/28.02.2023: “Equipping the AEROSTAR Testing Laboratory with

NDT testing equipment’ executed between March 2023 and December 2023, the value of the

subsidy received from the Ministry of Economy being 381 thousand lei, with 325 thousand lei

remaining to be recorded as revenue.

All investment projects in fixed assets were implemented and completed according to the contractual

provisions assumed.

AEROSTAR S.A. BACĂU

NOTES TO THE COMPANY FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

(unless specified otherwise, all amounts are stated in thousand lei)

NOTE 15 – COMMERCIAL DEBTS

Prepaid amounts collected on customers’ account , of

Lending customers from Romania

Lending customers from outside Romania

Suppliers , of which:

Suppliers of materials and services from Romania

Suppliers of materials and services from outside Romania

Suppliers – invoices not arrived

Suppliers of non-current assets

Total commercial debts

Prepayments received from external customers are for aircraft maintenance and repair work

(94,56%) and other services provided (5,44%).

No mortgages were set up for the recorded debts. Debts to suppliers are also within contractual

The favourable or unfavourable exchange rate differences between the exchange rate at which the

foreign currency debts are recorded and the exchange rate communicated by the National Bank of

Romania valid for the end of December 2024 were recorded in the corresponding revenue or

expense accounts.

AEROSTAR S.A. BACAU

NOTES TO THE COMPANY FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

(unless specified otherwise, all amounts are stated in thousand lei)

NOTE 16 - OTHER LIABILITIES

Other current liabilities , of which:

Liabilities related to manpower and similar

Liabilities related to social security budget and

state budget, of which:

– VAT payable

– social insurance

– labour insurance contribution

– tax on income in the form of salaries

– contribution for unemployed people with

– other taxes

– other social liabilities

Diverse creditors :

Other long-term liabilities 1.467 1.490

The category "Other long-term liabilities" includes the liability related to the right of use of the land

leased for the Maintenance Hangar of Iași.

The dividends in balance on 31 December 2024, in the amount of 3.125 thousand lei represent the

amounts remained in balance for the shareholders who did not show up at the offices of the paying

agent CEC Bank S.A. (the paying agent designated by AEROSTAR) and which were not time-barred.

The Company has no outstanding debts to the state budget, social security budget and local budgets.

AEROSTAR S.A. BACĂU

NOTES TO THE COMPANY FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

(unless specified otherwise, all amounts are stated in thousand lei

NOTE 17 – DEFERRED PROFIT TAX

The deferred tax is determined for the temporary differences occurring between the tax base of the

assets and liabilities and their accounting base. The deferred tax is calculated at a tax rate of 16%

applicable to the temporary differences.

The Company estimated and registered liabilities regarding the deferred tax related to immobilized

assets (resulting from differences between accounting and fiscal values, different useful lifetimes,

etc.) and reserves, and it recognized receivables regarding the deferred tax related to immobilized

securitie s (assets) , inventorie s an d trad e receivable s tha t wer e adjuste d fo r depreciation , provision s for

customer bonds, provisions for benefits granted to the employees and other provisions.

Structure of the deferred income tax registered on 31.12.2024:

Liabilities from deferred tax

1. Liabilities related to the deferred tax generated by the differences between the

accounting bases (higher) and the fiscal ones (lower) of the non-current assets

2. Liabilities related to the deferred tax concerning legal reserves

3. Liabilities on deferred tax related to reserves from the fiscal facility

4. Deferred tax liabilities related to carry-forward representing a surplus from re-

evaluation reserves

5. Liabilities on deferred tax related to non-current assets-securities

Total liabilities on deferred tax

Receivables on deferred tax

1. Receivables on deferred tax related to other provisions

2. Receivables on deferred tax related to provisions for bonds granted to customers

3. Receivables on deferred tax related to provisions for employee benefits

4. Receivables on deferred tax related to adjustments for depreciation of inventories 5.

Receivables on deferred tax related to adjustments for depreciation of trade

Total receivables on deferred tax

Balance - Deferred tax liabilities

The Company did not recognize receivables on deferred tax related to other provisions for the aviation

industry risks due to an uncertainty regarding the fiscal deductibility of the expenses that could arise

fro m th e settlemen t o f obligation s fro m futur e periods . Therefore , th e difference s betwee n th e ta x base

and the accounting base would be null.

In the period 1 January 2024 – 31 December 2024, the company registered income from the tax on

deferred profit in the amount of 6.939 thousand lei and expenses with the tax on deferred profit in the

amount of 7.056 thousand lei, with a net impact on the financial performance of - 117 thousand lei..

AEROSTAR S.A. BACĂU

NOTES TO THE COMPANY FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

(unless specified otherwise, all amounts are stated in thousand lei

NOTE 17 – DEFERRED PROFIT TAX (continued)

The tax on deferred profit recognized on the account of equity in the amount of 27.445 thousand lei

consists of liabilities on deferred tax in the amount of 27.864 thousand lei, as follows:

- deferred tax liabilities related to legal reserves 1.559 thousand lei

- deferred tax liabilities related to reserves from tax incentives 25.007 thousand lei;

- deferred tax liabilities related to fixed securities-shares 1.298 thousand lei;

and receivables on deferred tax in the amount of 419 thousand lei.

AEROSTAR S.A. BACĂU

NOTES TO THE COMPANY FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

(unless specified otherwise, all amounts are stated in thousand lei)

NOTE 18 - FINANCIAL INSTRUMENTS

A financial instrument is any contract generating simultaneously a financial asset for an entity and a

financial liability or an equity instrument for another entity.

The financial assets and liabilities are recognized when AEROSTAR becomes part of the contractual

provisions of the instrument.

The financial assets of AEROSTAR include:

- sight and term deposits held at banks;

- trade receivables;

- Evergent Investments S.A. shares (stock symbol: EVER);

- immobilized receivables (collaterals deposited at third parties).

The financial liabilities of AEROSTAR S.A. include:

- trade liabilities.

On the reporting date, AEROSTAR does not have any financial debts related to overdrafts and long-

term bank loans.

The main types of risks, generated by the financial instruments held, to which AEROSTAR is exposed

a) credit risk;

b) liquidity risk;

c) currency risk;

d) interest rate risk.

The credit risk is the risk that one of the parties involved in a financial instrument generates a financial

loss for the other party as a result of the failure to meet a contractual obligation, related mainly to:

- sight and term deposits held with banks

- trade receivables;

Sight and term deposits are held only in first-tier banking institutions (top 5 by asset level) with ratings

expressing the lowest risk rating.

In some cases, specific trade credit risk mitigation instruments are required (advance receipts, bank

letters of guarantee of good payment, confirmed export letters of credit).

AEROSTAR has no significant exposure to a single partner and no significant concentration of

receivables in a single geographical area.

Exposure to credit risk

The accounting value of the financial assets, net of the depreciation adjustments, represents the

maximum exposure to the credit risk.

The maximum exposure to the credit risk on the reporting date is presented in the table below:

31.12.2024 31.12.2023

Sight and term deposits held at banks

Trade receivables, net of adjustments for

Evergent Investments S.A. shares

Non-current receivables

AEROSTAR S.A. BACĂU

NOTES TO THE COMPANY FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

(unless specified otherwise, all amounts are stated in thousand lei)

NOTE 18 - FINANCIAL INSTRUMENTS (continued)

The maximum exposure to credit risk by geographical area for trade receivables net of

impairment adjustments is shown in the table below:

31.12.2024 31.12.2023

Domestic market

Euro zone countries

Other European countries

Over 120 days 44

Depreciation adjustments

The timeframe structure of gross trade receivables on the reporting date is presented in the table below:

Adjustments Adjustments

Gross for for value

depreciation Gross value depreciation

31.12.2024 31.12.2023

In due time 95.237

Past due, total of which: 220

Total 95.457 110 68.191 267

The movement in impairment adjustments for trade receivables during the year is shown in the

following table:

31.12.2024 31.12.2023

Balance on 1 January

Adjustments set up for depreciation

Adjustments for depreciations resumed as

Balance on 31 December 110 267

On 31.12.2024, 99,77% of the balance of trade receivables are related to customers with a good

payment record.

b) Liquidity risk

The liquidity risk is the risk that AEROSTAR encounters difficulties to meet the obligations associated

to the financial liabilities which are settled by cash payments.

AEROSTAR’s policy regarding this risk is to maintain an optimum level of liquidity so as to pay for

the liabilities, as they become due.

To evaluate the liquidity risk, the treasury cash flows from operations, investments and financing

operations are monitored and reviewed weekly, monthly, quarterly and yearly in order to determine the

estimated level of net liquidity modifications.

Also, the specific liquidity indicators are reviewed monthly (general liquidity, immediate liquidity and

rate of general solvency) against the budgeted levels.

AEROSTAR S.A. BACĂU

NOTES TO THE COMPANY FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

(unless specified otherwise, all amounts are stated in thousand lei)

NOTE 18 - FINANCIAL INSTRUMENTS (continued)

Furthermore, in order to reduce the liquidity risk, AEROSTAR maintains annually a liquidity reserve

as a Credit Line (usable as an overdraft) granted by banks to a maximum limit of 2.500 thousand USD.

The time intervals used to review the contractual due dates of the financial liabilities, with a view to

recording the timeframe for the cash flows in due time, are shown in the table below:

Trade liabilities

Trade liabilities

The cash flows included in the analyses of the due dates are not expected to take place earlier or at

significantly different values.

On 31.12.2024 AEROSTAR has no records of overdue financial liabilities.

c) Foreign currency risk

The foreign currency risk is the risk that the fair value or future cash flows of a financial instrument

fluctuate because of the changes in the currency exchange rates.

Exposure to the foreign currency risk

AEROSTAR is exposed to the foreign currency risks, as 79% of the turnover recorded in the reporting

period is denominated in USD and EUR, while a significant part of the operating expenses is

denominated in LEI.

Therefore, AEROSTAR is exposed to the risk that the currency exchange rate variations will affect

both its net income and its financial position as expressed in LEI.

However, AEROSTAR has decided not to access currency hedging products (options, forwards) due to

the relatively high initial costs and the possibility of losing opportunities in case of depreciation of

RON against the main currencies (USD, EUR). In 2024, AEROSTAR recorded gains of 2.179

thousand lei from exchange rate differences.

Net exposure in original currency

The net exposure of the financial assets and liabilities to the foreign exchange risk is presented below

based on the carrying amounts denominated in foreign currency recorded at the end of the reporting

31.12.2024 thousand thousand thousand

Sight and term deposits held at banks

Trade receivables

Trade liabilities

Sensitivity analysis

In view of the net exposure calculated in the above table, Aerostar can be considered to be mainly

exposed to the currency risk generated by changes in the USD/USD and EUR/USD exchange rate.

Taking into consideration the evolution of USD/LEU and EUR/LEU exchange rate in the previous

years, a relatively high volatility (+/-5%) of the USD/LEU exchange rate and a low volatility (+/-1%)

of the EUR/LEU exchange rate can be noticed.

AEROSTAR S.A. BACĂU

NOTES TO THE COMPANY FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

(unless specified otherwise, all amounts are stated in thousand lei)

NOTE 18 - FINANCIAL INSTRUMENTS (continued)

Thus, a reasonably possible variation of +/-5% for of the USD/LEU foreign exchange rate and +/-1%

for the EUR/LEU foreign exchange rate may be taken into account at the end of the reporting period.

The effect of the reasonably possible variation of the USD/LEU and EUR/LEU exchange rates on the

financial result of AEROSTAR is calculated in the following table:

Net exposure, in the currency of origin

Currency exchange rate

Net exposure in functional currency

Possible reasonable variation of exchange

Effect of variation on the financial

+/- 2.011 k LEI

d) Interest rate risk

For the reporting period AEROSTAR contracted a multi-product Credit Facility of 7.000 thousand

USD, intended for financing the Company’s operations, which includes:

- 2.500 thousand USD, usable as an overdraft;

- maximum 7.000 thousand USD, usable for the issuance of guarantee instruments (bank letters

of guarantee and import letters of credit), provided that the overdraft product is not used.

The bank interest is applicable only for the overdraft.

As the overdraft Product was not used during the reporting period, income and cash flows are

independent of changes in bank market interest rates.

On 31.12.2024, the level of guarantees granted under commercial agreements through the issuance of

bank letters of guarantee and import letters of credit amounts to 12.904 k LEI (equivalent to 2.701 k

On 31.12.2024 no mortgages are set up on the real estate assets owned by AEROSTAR.

AEROSTAR S.A. BACĂU

NOTES TO THE COMPANY FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

(unless specified otherwise, all amounts are stated in thousand lei)

NOTE 19 - OPERATING INCOME

Sales revenue, of which:

Revenue from product sales

Revenue from services provided

Revenue from selling goods

Revenue from rental

Trade discounts granted

Revenue from other activities

Revenue related to inventories of products

finished and in progress

Revenue from the production of fixed assets

Revenue from operating subsidies

Revenue from subsidies for investments

Other revenue from operations

Total operating income

The Company recorded an increase in income from inventories of finished goods and work in

progress amounting to 22.824 thousand lei, as a result of the increase in the level of inventories of

finished goods and work in progress compared to the end of the previous year.

In 2024, the Company recorded income from operating subsidies in the amount of 305

thousand lei. Most of the amounts were granted for the employment, for an indefinite period, of

graduates of educational institutions in accordance with Law No. 76/2002 on the

unemployment insurance system and stimulation of employment.

Other operating income in the amount of 1.663 thousand lei is represented, among others, by

income from the recovery of debts from former employees (tuition fees and other debts),

income from recovered damages and fees.

AEROSTAR S.A. BACĂU

NOTES TO THE COMPANY FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

(unless specified otherwise, all amounts are stated in thousand lei)

NOTE 20 – OPERATING EXPENSES

Expenses on employee benefits, of which:

Salaries and allowances

Expenses on meal tickets granted to employees

Expenses on social security

Expenses on raw material and material

Energy, water and gas

Other material expenses, of which:

Expenses on non-stock materials

Expenses on goods

Expenses on packaging

Expenses on other material

Expenses on external services, of which:

Transport costs

Commissions and fees

Travels, deployments

Rental and royalty expenses

Other expenses on services supplied by third parties

Trade discounts received

Net expenses (revenues) from adjustments on

Net expenses (revenues) from adjustments on

Other operational expenses

Trial operating expenses:

In accordance with the provisions of the International Financial Reporting Standards and of the

Accounting Policies Manual, the company registers adjustments on provisions (Note 13) and

adjustments for the impairment of the current assets, inventories, production in progress and

receivables, respectively (Note 8, Note 9 and Note 10).

In 2024, the company offered its employees meal vouchers worth 14.915 thousand lei.

Other operating expenses amounting to 8.669 thousand lei include, among others: local taxes and

fees, sponsorships, scholarships granted to students enrolled in dual education, environmental

protection expenses.

AEROSTAR S.A. BACĂU

NOTES TO THE COMPANY FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

(unless specified otherwise, all amounts are stated in thousand lei)

NOTE 20 – OPERATING EXPENSES (continued)

In 2024, AEROS T AR registered increased/set up and decreased/resumed adjustments, as follows:

During 2024, the impact of the adjustments on provisions is a decrease in the operating expenses of

17.489 thousand Lei. Compared to the previous year, the net income related to provision

adjustments decreased by 9.751 thousand Lei.

In 2024, the impact of the adjustments for the impairment of current assets is an increase in the

operating expenses of 11.034 thousand lei. Compared to the previous year, the net expenses from

adjustments related to impairment of current assets decreased by 3.726 thousand lei.

Adjustments on provisions

Increases/setups

Decreases/reruns

Net expenses (revenues) from adjustments on

Adjustments for impairment of current assets

Increased/set up adjustments

Adjustments for impairment of inventories

Adjustments for impairment of receivables

Losses from receivables and various debtors

Total increased/set up adjustments

Decreased/resumed adjustments

Adjustments for impairment of inventories

Adjustments for impairment of receivables

Total decreased/resumed adjustments

Net expenses (revenues) from adjustments on the

impairment of current assets

AEROSTAR S.A. BACĂU

NOTES TO THE COMPANY FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

(unless specified otherwise, all amounts are stated in thousand lei)

NOTE 21 - FINANCIAL INCOME

Income from foreign currency exchange differences

Interest income

Income from shares held in subsidiaries

Income on financial assets measured at fair value

Total financial income

Aspects regarding the Company’s exposure to the risks generated by the financial instruments held

are presented in Note 18 Financial Instruments .

The income on financial assets measured at fair value represents the dividends related to the holding

of instruments in the equity of Evergent Investments S.A.

AEROSTAR S.A. BACĂU

NOTES TO THE COMPANY FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

(unless specified otherwise, all amounts are stated in thousand lei)

NOTE 22 - FINANCIAL EXPENSES

Expenses from exchange rate differences

Expenses on interest related to leasing contracts

Total financial expenses

In 2024 the Company registered in the financial expenses category:

expenses from unfavourable exchange rate differences;

expenses on interests related to the right to use the land under concession for the

Maintenance Hangar in Iași.

AEROSTAR S.A. BACĂU

NOTES TO THE COMPANY FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

(unless specified otherwise, all amounts are stated in thousand lei)

NOTE 23 - TAX ON PROFIT

The tax on profit is recognized in the statement of profit or loss.

The tax on profit is the tax payable related to the profit made in the current period, as determined in

accordance with the fiscal regulations applicable on the reporting date. The profit tax rate applicable for

31.12.2024 was 16% (the same rate was applied for the financial year 2023).

31 December 2024

31 December 202

Gross accounting profit 104.809 96.956

Expenses with current tax on profit 8.967 6.285

Income tax on gains from the sale of securities held 558 153

Reconciliation of accounting profit with the fiscal profit for 31 December 2024 Differences

Accounting revenues

Accounting expenses

Gross accounting profit, restated

Accounting tax (16%)

Fiscal expenses

Fiscal tax (16%)

Tax reductions, of which :

Related to investments

made acc. to Art. 22 Fiscal

12% bonus according to

Tax on final profit*

Legal rate applicable

Tax on final profit

Applicable legal rate

Actual average tax rate,

calculated on gross accounting

profit, restated

Comparative key figures

31 December 2023

Gross accounting profit 96.956

Expenses with current tax on profit 6.285

Income tax on the gain from the sale of securities held 153

Reconciliation of accounting profit with the fiscal profit for 31 December 2023 Differences

Accounting revenues

Accounting expenses

Gross accounting profit, restated

Accounting tax (16%)

Fiscal expenses

Fiscal tax (16%)

Tax reductions, of which: :

Related to investments

made acc. to Art. 22 Fiscal

14% bonus according to

Tax on final profit

Applicable legal rate

Tax on final profit

Applicable legal rate

Actual average tax rate,

calculated on gross accounting

profit, restated

AEROSTAR S.A. BACĂU

NOTES TO THE COMPANY FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

(unless specified otherwise, all amounts are stated in thousand lei)

NOTE 23 - TAX ON PROFIT (continued)

The effective tax rate increased from 6,64% in 2023 to 9,09% in 2024. The main factors that

affected the actual tax rate:

decreasing tax incentives, representing the corporate income tax exemption related to

investments made under the Art.22 of the Tax Code. In 2024, the incentive in the amount of

2.997 thousand RON, compared to 4.468 thousand RON in the previous year.

increased tax profit in relation to restated gross accounting profit, mainly due to the effect of:

non-taxable income obtained as a result of the recovery of non-deductible expenses

expenses not deductible for tax purposes, of which: expenses related to the setting aside or

increase of provisions and value adjustments on current assets not deductible for tax

purposes, expenses related to book depreciation not deductible for tax purposes, etc.).

The financial performance in 2024 is influenced by the current and deferred income tax, as follows:

Current income tax expenses *

Deferred income tax expenses

Deferred income tax revenue

Current and deferred income tax

31 December 2024

31 December 2023

*Note: The income tax for 2024 amounts to 9.525 thousand lei, of which 558 thousand lei are

recognized in equity, representing the tax on the gain from the sale of equity instruments through

other comprehensive income.

AEROSTAR S.A. BACĂU

NOTES TO THE COMPANY FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

(unless specified otherwise, all amounts are stated in thousand lei)

NOTE 24 - RESULT PER SHARE

The profit per basic share was calculated based on the profit attributable to the ordinary

shareholders and on the number of ordinary shares.

The diluted result per share is equal to the result per basic share, as the company did not register any

potential ordinary shares.

Profit attributable to ordinary shareholders

Number of ordinary shares

Profit per share

AEROSTAR S.A. BACĂU

NOTES TO THE COMPANY FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

(unless specified otherwise, all amounts are stated in thousand lei)

NOTE 25 - AVERAGE NUMBER OF EMPLOYEES

Average number of employees

AEROSTAR’s own employees

Total number of employees

AEROSTAR’s own employees

On 31 December 2024 the total number of employees in the Company is 1.884, of which 1.753 are

AEROSTAR’s own employees and 131 persons represent labour force hired through a temporary

employment agent.

On 31 December 2023, the total headcount was 1.846 employees, of which 1.752 were AEROSTAR’s

own employees and 94 persons represented labour force hired through a temporary employment agent.

AEROSTAR S.A. BACĂU

NOTES TO THE COMPANY FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

(unless specified otherwise, all amounts are stated in thousand lei)

NOTE 26 - TRANSACTIONS WITH AFFILIATED PARTIES

Acquisitions of goods and services

Airpro Consult SRL Bacău

Foar SRL Bacău

Sales of goods and services

Airpro Consult SRL Bacău

Foar SRL Bacău

Airpro Consult SRL Bacău

Foar SRL Bacău

Dividends received by Aerostar

Airpro Consult SRL Bacău

Foar SRL Bacău

The transactions with the affiliated parties in the period 01.01.2024-31.12.2024 consisted in:

Services provided by Airpro Consult SRL Bacau to AEROSTAR SA Bacău for temporary

Machinery rental services provided by Foar SRL Bacau to AEROSTAR SA Bacău;

Space rental services provided by AEROSTAR SA Bacau to Foar SRL Bacău;

Dividends received by Aerostar S.A. from Airpro SRL Bacau and Foar SRL Bacău (Note 7).

AEROSTAR S.A. BACĂU

NOTES TO THE COMPANY FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

(unless specified otherwise, all amounts are stated in thousand lei)

NOTE 27 - INFORMATION REGARDING THE CASH FLOW

The method used in the Cash Flow Statement is the direct method.

The cash flows statement presents the cash flows and cash equivalents classified by operating

activities, investments and financing, thus indicating how AEROSTAR generates and uses the cash

and cash equivalents.

In the context of preparing the Cash Flows Statement:

the cash flows are the amounts collected and paid in cash and cash equivalents;

the cash includes the cash available in the company’s cash office and the sight deposits held at

banks (available in the current accounts);

the cash equivalents comprise the term deposits held at banks

The treasury cash flows from the transactions made in foreign currency are registered in the

functional currency (LEU) by applying to the foreign currency value the exchange rate between the

functional currency and the foreign currency on the date of the cash flow (the date of making

payments and collections).

The earnings and losses arising from the exchange rate variation are not treasury cash flows.

Nevertheless, the effect of the exchange rate variation on the cash and cash equivalent held or owed in

foreign currency is reported in the treasury cash flows statement, but separately from the treasury cash

flows arising from operations, investments and financing, so as to reconcile the cash and cash

equivalents at the beginning and end of the reporting period.

The summarized cash flow situation in 2024 is presented in the table below:

Total income, of which: 637.997 100%

Amounts from operating activities 604.546 95%

Amounts from investment activity 33.451 5%

Amounts from financing activity - 0%

Total payments, of which: 624.073 100%

Payments from operating activities 566.228 91%

Payments from investment activity 26.952 4%

Payments from financing activity 30.893 5%

Net increase in cash and cash

Cash and cash equivalents at the

end of the period

The operating activity is AEROSTAR S.A.’s main cash-generating activity.

- the amounts collected from customers were worth 591.206 thousand LEI;

- the amounts collected from the State Budget were worth 13.340 thousand LEI, of which 13.031

thousand LEI represent VAT recoveries and other social receivables and 309 thousand LEI are

receipts in the form of operating subsidies;

- the payments to suppliers and employees amounted to 470.738 thousand LEI, of which 348.789

thousand LEI were payments to suppliers and 121.949 thousand LEI to employees;

- the tax payments to the State Budget amounted to 95.490 thousand LEI, of which 78.607 thousand

LEI in payroll taxes, 9.256 thousand LEI income tax, 5.682 thousand LEI in VAT, 1.945 thousand

LEI in taxes and duties to local budgets.

AEROSTAR S.A. BACĂU

NOTES TO THE COMPANY FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

(unless specified otherwise, all amounts are stated in thousand lei)

NOTE 27 - INFORMATION REGARDING THE CASH FLOW (continued)

The operating activity generated a net cash of 38.318 thousand LEI, an increase of 4.614 thousand

LEI compared to the same period last year.

The investment activity included:

bank interest income amounting to 8.969 thousand LEI from bank deposits made.

proceeds from the sale of Evergent shares (stock symbol: EVER) in the amount of 20.468

The purchased shares are held for dividend collection as well as for gains on their sale. The sale of

EVER shares generated a gross gain of 3.486 thousand

dividends received from Evergent Investments S.A. in the amount of 3.498 thousand LEI;

dividends received from affiliated entities (Airpro Consult SRL, Foar SRL) in the amount of

516 thousand LEI;

payments for the purchase of tangible and intangible fixed assets in the amount of 26.952

The amount of cash flow allocated so as to increase the operating capacity represents 4% of the

aggregate amount of cash used in operating, investing and financing activities.

As part of the financing activity, an amount of 30.893 thousand LEI was paid, representing

dividends due to AEROSTAR shareholders.

The level of cash and cash equivalents recorded on 31.12.2024 is 260.403 thousand LEI, up by

14.611 thousand LEI compared to the beginning of the year.

AEROSTAR S.A. BACĂU

NOTES TO THE COMPANY FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

(unless specified otherwise, all amounts are stated in thousand lei)

NOTE 28 - LIABILITIES AND OTHER OFF-BALANCE ITEMS

AEROSTAR S.A. registers as off-balance items, the rights, liabilities and goods which are not

recognized in the company assets and liabilities, i.e.:

guarantees granted to partners as letters of bank

guarantee and letters of credit

guarantees received from partners – as letters of

bank guarantee and letters of credit

mortgage guarantee received

Goods , of which:

inventories of other material released for use

(tooling, jigs, fixtures, safety equipment, measuring

and control equipment, technical library etc.)

materials received in custody

finished products received in custody

materials - customers

tangible and intangible assets – obtained or

purchased as a result of co-financed activity

products received for processing/repair

materials received for processing/repairs

supporting assets related to concession agreements-

fixed assets proposed for disposal

Other off-balance values, of which:

material guarantees established for the managers’

liability for the management of assets

liabilities for covering certain future obligations to

A.J.O.F.M. based on 9624/12.12.2011 regarding

the defence industry

debtors removed from accounts, monitored further

de minimis aid for participation in fairs and

Greenhouse Gas Emission Certificates

On 31 December 2024, AEROSTAR S.A. held a total of 9.615 greenhouse gas emission

The market value on the last trading day of a GHG certificate was 69,96 Euros, according to the

European Energy Exchange website (in December 2023: 77,25 Euros), at a re-evaluation exchange

rate of 4,9741 Lei/Euros.

AEROSTAR S.A. BACĂU

NOTES TO THE COMPANY FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

(unless specified otherwise, all amounts are stated in thousand lei)

NOTE 29 - DIRECTORS’ REMUNERATION

On July 04, 2024, the Ordinary General Meeting of the shareholders of Aerostar SA took place, in

which the Board of Directors of the company was elected, consisting of 5 (five) members, for a term of

office of 4 years, starting July 11, 2024.

Board of Directors of AEROSTAR S.A. on 31.12.2024:

Chief Executive Officer

Surname and first name

of the Board of Directors

of the Board of Directors

FILIP ALEXANDRU

TONCEA RADU TUDOR

DOROŞ LIVIU-CLAUDIU

of the Board of Directors

of the Board of Directors

In 2024, Aerostar did not grant advance payments or credits to the members of the Board of Directors

and did not make any commitment on their account as collateral of any kind.

In the Ordinary General Meeting that took place on July 04, 2024, the shareholders of Aerostar

approved the following:

- for the term of office starting on 11.07.2024, the Directors will receive a fixed monthly

remuneration, amounting to the equivalent in lei of 1.000 Euros net/month;

- for the term of office starting on 11.07.2024, the remuneration of directors who also hold

specific executive positions shall consist of a fixed monthly remuneration, amounting to the

equivalent in lei of 1.000 Euros net/month, plus an additional monthly fixed net remuneration, of

up to ten (10) times (inclusive) the remuneration of a member of the Board of Directors.

The gross indemnities granted to the members of the Board of Directors and Executive Directors in

2024 according to the AGM’s Decision from 22.02.2024 and that of 04.07.2024, by virtue of their

responsibilities, amounted to 1.812 thousand lei.

AEROSTAR S.A. BACĂU

NOTES TO THE COMPANY FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

(unless specified otherwise, all amounts are stated in thousand lei)

NOTE 30 - RISK MANAGEMENT

AEROSTAR is exposed to multiple risks and uncertainties that can affect its financial performance.

The business lines run by AEROSTAR, the operational results or the financial statements could be

affected by the materialization of the risks presented below.

AEROSTAR pursues to secure the average and long-term sustainability and to reduce the

uncertainty associated with its strategic and financial objectives.

Risk management processes are in place to ensure that risks are identified, analysed, assessed and

managed so as to minimise their effects to an agreed level.

However, there may be risks and uncertainties in addition to those described below, which are not

currently known or are considered insignificant, but which in the future may affect the lines of

business run by AEROSTAR.

Operational Risk

It is the risk to incur losses or the risk of failure to make the estimated profits, determined by:

the use of processes, systems and manpower that were either inadequate or failed to function

external events and actions: deterioration of the global economic conditions, natural disaster

or other events that can affect AEROSTAR’s assets.

Considering the global political turmoil, in the future we may face new types of risks, which is why

AEROSTAR closely monitors the main areas of conflict.

The Operational Risk is also associated to the Legal Risk , defined as the risk of loss, resulting from the

fines, penalties and sanctions AEROSTAR is liable to in case of non-application or

misapplication of legal or contractual dispositions or regulations, as well as due to the fact that the

rights and contractual obligations of AEROSTAR and/or of its business partner are not properly

The effects of the legal risk are monitored and eliminated through a permanent information system

regarding the legislative modifications, as well as by setting up a review, endorsement and approval

system for the terms and conditions included in the commercial agreements.

AEROSTAR has allocated and will continue to allocate investment funds and other operational

expenses in order to prevent and manage the operational risk.

Moreover, AEROSTAR aims to have its own funds to cover the risks to which it is exposed, by

setting aside provisions for risks and related expenses.

Furthermore, in order to mitigate the operational risk, AEROSTAR annually renews a civil liability

insurance contract with leading insurance and reinsurance companies for its main lines of business

(manufacture of aviation products and maintenance of commercial aircraft).

The Credit Risk is the risk that AEROSTAR might bear a financial loss as a result of the failure to

meet the contractual obligations by a partner, being determined mainly by sight and term bank

deposits with banks and trade receivables.

Deposits held with banks are placed only with first-tier banking institutions that are considered to

have high creditworthiness.

The credit risk, including the country risk for the country where the customer performs its activity, is

managed per business partner. When deemed necessary, specific instruments of credit risk

mitigation are requested (advance payments, letters of bank guarantee, confirmed export credits).

AEROSTAR S.A. BACĂU

NOTES TO THE COMPANY FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

(unless specified otherwise, all amounts are stated in thousand lei)

NOTE 30 - RISK MANAGEMENT (continued)

AEROSTAR has no significant exposure to a single partner and does not have a significant

concentration of turnover in a single geographical area.

However, there is exposure to the global market for Airbus programmes, as a large share of the

company’s products are integrated on Airbus aircraft.

A presentation of quantitative information on AEROSTAR’s exposure to credit risk is detailed in

Note 18 (Financial Instruments) to the Financial Statements.

Liquidity risk is the risk that AEROSTAR will encounter difficulties in meeting its liability

obligations as they fall due.

For liquidity risk management purposes, cash flows are monitored and analysed on a weekly,

monthly, quarterly and annual basis to determine the estimated level of net changes in liquidity.

These analyses provide the basis for funding decisions and capital commitments.

In order to mitigate liquidity risk, AEROSTAR maintains an annual liquidity reserve in the form of a

Credit Line available for use in the form of bank overdrafts in the amount of 2.500 thousand USD.

During the reporting period AEROSTAR did not use the Credit Line, as all the Company’s activities

were financed from its own sources.

Market risk is the risk that the fair value or future cash flows of a financial instrument will

fluctuate because of changes in market prices.

The market risk comprises the price risk, the currency risk and the interest rate risk.

AEROSTAR is mainly exposed to the price risk caused by fluctuations in the price of raw

materials and materials used in the production processes due to exceptional events, the imposition of

international sanctions with consequences on the limitation of the possibility to supply parts and

materials, the increase in the costs of specific taxes for import/export of metal products to and from

This risk is managed by:

diversifying the supplier portfolio, which can provide increased negotiating leverage in the

event that the price of raw materials increases with some suppliers.

concluding long-term contracts with fixed price clauses.

AEROSTAR is exposed to the exchange rate risk because 79% of its turnover is related to USD and

EUR, while a significant part of the operating expenses is denominated in LEI.

Thus, AEROSTAR is exposed to the risk that the exchange rate variations will affect both its net

income, as well as its financial position, as they are expressed in LEI.

An analysis of AEROSTAR’s sensitivity to the foreign exchange rate variations is detailed in Note

18 (Financial Instruments) to the Financial Statements.

As far as the interest rate is concerned, due to the fact that AEROSTAR did not use the contracted

Credit Line in the reporting period, the income and cash flows are independent from the interest rate

variation on the banking market.

Other aspects concerning risk management are presented in the chapter OPPORTUNITY AND

RISK MANAGEMENT of the Board of Directors’ Report.

AEROSTAR S.A. BACĂU

NOTES TO THE COMPANY FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

(unless specified otherwise, all amounts are stated in thousand lei)

NOTE 31 - PREPAID EXPENSES AND INCOME

Prepaid expenses (short-term)

Prepaid income (short-term)

The expenses made and the income obtained in the current period, but regarding future periods or

financial years are registered distinctly in the accounting department, as prepaid expenses or prepaid

income, as applicable.

The category of prepaid expenses on the books on 31 December 2024 includes amounts to resume

within a period of up to one year representing, inter alia, fees and taxes, subscriptions, insurance

policies, commissions, participation in fairs and conferences, on-line services, maintenance of IT

As on December 31, 2024, Aerostar did not recognize any long-term prepaid income . The category

short-term prepaid income includes amounts relating to the delivery of goods and services

rendered, where the income recognition conditions of IFRS 15 are not met (the customers have not yet

taken control of the goods/services).

AEROSTAR S.A. BACĂU

NOTES TO THE COMPANY FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

(unless specified otherwise, all amounts are stated in thousand lei)

NOTE 32 - ASSETS REGARDING THE RIGHTS TO USE THE LEASED ASSETS:

reporting period 31 December 2024

Asset related to the

right to use the land

for the MRO Hangar

Values on 31 December 2024 Values on 01 January 2024

Net accounting value on 31.12.2024 and transactions during the period:

01 January 2024

Update provision for

dismantling/removal/

underlying assets

during the period

31 December 2024

Asset related to the

right to use the land

for the MRO Hangar

AEROSTAR S.A. BACĂU

NOTES TO THE COMPANY FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

(unless specified otherwise, all amounts are stated in thousand lei)

NOTE 32 - ASSETS REGARDING THE RIGHTS TO USE THE LEASED ASSETS: reporting period (continued)

COMPARATIVE KEY FIGURES - ASSETS REGARDING THE RIGHTS TO USE THE LEASED ASSETS: reporting period 31 December

Asset related to the

right to use the land

for the MRO Hangar

Values on 31 December 2023 Values on 01 January 2023

Net accounting value on 31.12.2023 and transactions during the period:

Update provision for

dismantling/removal/r

underlying assets

over the period

31 December 2023

Asset related to the

right to use the land

for the MRO Hangar

The right to use the land for the Hangar Mentenanță Iași was revalued at the exchange rate communicated by the National Bank of Romania on the last

banking day of each reporting period.

AEROSTAR S.A. BACĂU

NOTES TO THE COMPANY FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

(unless specified otherwise, all amounts are stated in thousand lei

NOTE 33 - EVENTS AFTER THE REPORTING PERIOD

Aerostar S.A has not identified any events subsequent to the reporting date that would have an

impact on the financial statements for the financial year ended 31 December 2024.

These company financial statements that comprise the statement of financial position, the statement of

profit or loss, other comprehensive income, the statement of changes in equity, the statement of cash

flows and the explanatory notes to the financial statements were approved by the Board of Directors

on 20.03.2025 and signed on its behalf by:

Alexandru FILIP

Chief Executive Officer

Financial Director

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The undersigned ALEXANDRU FILI P , as General Director of AEROS T AR S.A.

and DORU DAMASCHIN, as Financial Director of AEROS T AR S.A., hereby

undertake the responsibility for the preparation of the individual financial statements

as on 31.12.2024 and we confirm hereby that:

a) The accounting - financial statement for 2024, that was prepared in accordance

with the applicable accounting standards provides a fair image, compliant with

the reality of the assets, obligations, financial position, of the profit and loss

account of the company Aerostar S.A. Bacău;

b) The report of the Board of Directors on the financial year 2024, prepared in

accordance with the provisions of Regulation no. 5/2018 issued by the Financial

Supervisory Authority - Annex no. 15, contains a correct review of the company’s

development and performance, a description of the main risks and uncertainties

related to the activity of Aerostar S.A. Bacău and are prepared in accordance

with the sustainability reporting standards mentioned in Article 29b of Directive

2013/34/EU and with the clarifications adopted pursuant to Article 8 para. (4) of

Regulation (EU) 2020/852.

General Directo r ,

ALEXANDRU FILIP

Financial Directo r ,

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