Feerum S A : 1. Separate financial statements of Feerum S.A. for the 2023 financial year

FEERUM S.A.

Financial report

for the period from 1 January 2023 to 31 December 2023

Town	CHOJNÓW
Date	30 APRIL 2024

Name of the Issuer:

Period covered by the financial statements:

Level of rounding:

Feerum S.A.
01.01.2023 - 31.12.2023	Reporting currency	Polish zloty (PLN)

all amounts are expressed in thousands of Polish zloty (unless otherwise indicated)

TABLE OF CONTENTS
STATEMENT OF FINANCIAL POSITION	3
REPORT ON THE OUTCOME	5
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME	5
STATEMENT OF CHANGES IN EQUITY	6
CASH FLOW STATEMENT	8
NOTES TO THE FINANCIAL STATEMENTS	9
General information	9
Basis of preparation and accounting principles	12
1.	Significant events affecting the Company's financial position in 2023	34
2.	Correction of an error and change in accounting policy	35
3.	Operating segments	35
4.	Intangible assets	38
5.	Property, plant and equipment	40
6.	Lease assets and liabilities	42
7.	Financial assets and liabilities	43
8.	Deferred tax assets and liabilities	47
9.	Stocks	50
10.	Trade and other receivables	51
11.	Cash and cash equivalents	53
12.	Equity	54
13.	Employee benefits	55
14.	Trade and other payables	57
15.	Reserves	58
16.	Accruals and deferred income	59
17.	Assets and liabilities from contracts with customers	61
18.	Operating income and expenses	62
19.	Financial income and expenses	63
20.	Income tax	64
21.	Earnings per share and dividends paid	65
22.	Cash flow	66
23.	Related party transactions	67
24.	Contingent assets and liabilities	68
25.	Risks relating to financial instruments	71
26.	Capital management	75
27.	Events after the balance sheet date	76
28.	Other information	79
29.	Approval for publication	82

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Name of the Issuer:

Period covered by the financial statements:

Level of rounding:

Feerum S.A.
01.01.2023 - 31.12.2023	Reporting currency	Polish zloty (PLN)

all amounts are expressed in thousands of Polish zloty (unless otherwise indicated)

STATEMENT OF FINANCIAL POSITION

ASSETS	Notes	2023-12-31	2022-12-31
Non-current assets
Goodwill		-	-
Intangible assets	4	24 829	27 131
Property, plant and equipment	5	37 867	41 634
Investment property		-	-
Investments in subsidiaries		5	5
Investments in associates		-	-
Trade and other non-current receivables		1 374	2 286
of which Non-current prepaid expenses		-	-
Other non-current financial assets	7	4	4
Deferred tax assets	8	2 238	1 861
Non-current assets		66 317	72 920
Current assets
Stocks	9	64 563	67 875
Assets from contracts with customers	17	6 340	1 292
Trade and other short-term receivables	10,16	10 865	14 998
of which Short-term prepaid expenses	16	253	310
Current income tax receivable		196	-
Other short-term financial assets		-	-
Cash and cash equivalents	11	1 603	12 866
Current assets excluding non-current assets classified as held for		83 567	97 031
sales
Non-current assets classified as held for sale		393	-
Current assets		83 960	97 031
Total assets		150 278	169 951

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Name of the Issuer:

Period covered by the financial statements:

Level of rounding:

Feerum S.A.
01.01.2023 - 31.12.2023	Reporting currency	Polish zloty (PLN)

all amounts are expressed in thousands of Polish zloty (unless otherwise indicated)

STATEMENT OF FINANCIAL POSITION (CONT.)

LIABILITIES	Notes2023-12-31	2022-12-31
Equity
Core capital	12	33 383	33 383
Own shares (-)		-	-
Share premium account		9 366	9 366
Other reserves		2 117	2 117
Retained earnings		67 790	64 983
of which net profit (loss) for the year attributable to equity holders of the entity		2 808	3 677
dominant
Equity attributable to equity holders of the parent company		112 657	109 849
Non-controlling interests		-	-
Equity		112 657	109 849
Commitments
Long-term liabilities
Loans, borrowings, other debt instruments	7	-	3 510
Financial leasing	6	239	692
Other non-current financial liabilities		-	-
Trade and other non-current liabilities	14,16	4 068	5 558
of which Accruals and deferred income	16	4 068	5 558
Deferred tax liability	8	2 230	1 665
Employee benefit obligations and provisions	13	291	257
Other long-term provisions		424	924
Long-term liabilities		7 252	12 607
Current liabilities
Trade and other current liabilities	14,16	9 449	10 860
of which Accruals and deferred income	16	1 585	1 869
Liabilities from contracts with customers		-	1 480
Current income tax liabilities		0	551
Loans, borrowings, other debt instruments	7	18 415	28 472
Financial leasing	6	372	517
Other short-term financial liabilities		-	-
Employee benefit obligations and provisions	13	1 811	1 845
Other short-term provisions		323	3 770
Current liabilities excluding liabilities included in groups		30 369	47 495
to be sold
Liabilities related to non-current assets held for sale		-	-
Current liabilities		30 369	47 495
Total liabilities		37 621	60 102
Total liabilities		150 278	169 951

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Name of the Issuer:

Period covered by the financial statements:

Level of rounding:

Feerum S.A.
01.01.2023 - 31.12.2023	Reporting currency	Polish zloty (PLN)

all amounts are expressed in thousands of Polish zloty (unless otherwise indicated)

REPORT ON THE OUTCOME

(CALCULATION VARIANT)

Continuing operations

Sales revenue

Cost of sales

Gross profit (loss) from sales

Selling costs

General and administrative expenses

Other operating income

Other operating expenses

Profit (loss) on sale of subsidiaries (+/-)

Operating profit (loss)

Financial income Financial costs

Share of profit (loss) of equity accounted investees (+/-) Profit (loss) before tax

Income tax

Net profit (loss) from continuing operations

Discontinued operations

Net profit (loss) from discontinued operations

Net profit (loss)

Notes	01.01 to	from 01.01 to
31.12.2023	31.12.2022
3	56 559	69 647
	44 247	53 809
	12 312	15 838
	1 038	954
	7 013	7 600
18	315	277
18	524	674
	-	-
	4 052	6 887
19	2 550	894
19	3 614	2 860
	-	-
	2 988	4 920
20	180	1 243
	2 808	3 677
	-	-
	-	-
	2 808	3 677

NET PROFIT (LOSS) PER ORDINARY SHARE (PLN)

		from 01.01	from 01.01 to
Specification		to	31.12.2022
s	Note	31.12.2023
	PLN / share	PLN / share
from continuing operations	21
- basic		0,29	0,39
- diluted		0,29	0,39

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

Notes	from 01.01 to	from 01.01 to
31.12.2023	31.12.2022
Net profit	2 808	3 677
Other comprehensive income
Other comprehensive income that will not be reclassified to profit or loss, before
taxation	-	-
Other comprehensive income to be reclassified to profit or loss, before	-	-
taxation
Other comprehensive income before tax	-	-
Other comprehensive income after tax	-	-
Total income	2 808	3 677

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Name of the Issuer:

Period covered by the financial statements:

Level of rounding:

Feerum S.A.
01.01.2023 - 31.12.2023	Reporting currency	Polish zloty (PLN)

all amounts are expressed in thousands of Polish zloty (unless otherwise indicated)

STATEMENT OF CHANGES IN EQUITY

				Share	Other
	Notes	Capital	Own shares	premium
	account	reserves
	basic	(-)
Balance as at 01.01.2023 Changes in		33 383		-9 366	2 117
accounting policies Correction of		-	-	-	-
fundamental error		-	-	-	-
Balance as amended		33 383		-9 366	2 117
Changes in equity from 01.01 to 31.12.2023
Share issue		-	-	-	-
Increase (decrease) due to share-based payment transactions, equity		-	-	-	-
Change in group structure (transactions with non-controlling parties)		-	-	-	-
Dividends		-	-	-	-
Net profit for the period from 01.01 to 31.12.2023		-	-	-	-
Other comprehensive income after tax for the period 01.01 to 31.12.2023		-	-	-	-
Total comprehensive income		-	-	-	-
Transfer to retained earnings (sale of revalued fixed assets)		-	-	-	-
Total changes in equity		-	-	-	-
Balance at 31.12.2023		33 383		-9 366	2 117

Name of the Issuer:

Period covered by the financial statements:

Level of rounding:

Feerum S.A.
01.01.2023 - 31.12.2023	Reporting currency	Polish zloty (PLN)

all amounts are expressed in thousands of Polish zloty (unless otherwise indicated)

STATEMENT OF CHANGES IN EQUITY (CONT.)

Note s

Balance as at 01.01.2022

Changes in accounting policies

Correction of fundamental error*

Balance as amended

Changes in equity from 01.01 to 31.12.2022

Share issue

Increase (decrease) due to share-based payment transactions, equity

Change in group structure (transactions with non-controlling parties)

Dividends

Net profit for the period from 01.01 to 31.12.2022

Other comprehensive income after tax for the period 01.01 to 31.12.2022

Total comprehensive income

Transfer to retained earnings (sale of revalued fixed assets)

Total changes in equity

Balance at 31.12.2022

		Share	Other
Capital	Own shares	premium
account	reserves
basic	(-)
33 383		-9 366	2 117
-	-	-	-
-	-	-	-
33 383		-9 366	2 117
-	-	-	-
-	-	-	-
-	-	-	-
-	-	-	-
-	-	-	-
-	-	-	-
-	-	-	-
-	-	-	-
-	-	-	-
33 383		-9 366	2 117

Name of the Issuer:

Period covered by the financial statements:

Level of rounding:

Feerum S.A.
01.01.2023 - 31.12.2023	Reporting currency	Polish zloty (PLN)

all amounts are expressed in thousands of Polish zloty (unless otherwise indicated)

CASH FLOW STATEMENT

INDIRECT METHOD

Cash flow from operating activities

Profit (loss) before tax

Corrections:

Depreciation and write-downs of property, plant and equipment and intangible assets Impairment of fixed assets

Profit (loss) on sale of non-financial fixed assets Interest costs

Interest income Dividend income Other corrections Change in stocks Change in receivables Change in liabilities Change in provisions

Change in assets from contracts with customers Change in liabilities from contracts with customers Adjustments and changes in working capital Cash flow from operations (used in operations)

Income tax paid (refund), included in operating activities

Net cash from operating activities

Cash flow from investing activities

Expenditure on acquisition of intangible assets Proceeds from sale of intangible assets Expenditure on acquisition of property, plant and equipment Proceeds from the sale of property, plant and equipment Loan repayments received

Loans granted

Expenditure on the acquisition of other financial assets Proceeds from government grants received

Interest received Dividends received

Net cash from investing activities

Cash flow from financing activities

Proceeds from borrowings

Repayment of loans

Repayment of finance lease liabilities

Interest paid Dividends paid

Net cash from financing activities

Change in cash and cash equivalents before exchange differences Change due to exchange differences

Change in cash and cash equivalents

Cash and cash equivalents at beginning of period

Cash and cash equivalents at the end of the period

Notes

22

Notes

from 01.01 to	from 01.01 to
31.12.2023	31.12.2022
2 988	4 920
7 246	6 754
-	-
(59)	(117)
2 662	2 530
(50)	(42)
(2 500)	-
-	-
3 313	(15 982)
5 044	1 189
(3 123)	(3 396)
(3 725)	(362)
(5 048)	2 802
(1 480)	1 480
2 279	(5 142)
5 266	(222)
(738)	(1 015)
4 528	(1 237)
from 01.01 to	from 01.01 to
31.12.2023	31.12.2022

1. (23)

• -

1. (158)

59120

• -
• -

1. -

• -

50	42
2 500	-
1 037	(19)
1 119	4 200
(14 686)	(12 663)

1. (808)

(2 662)	(2 530)
-	-
(16 829)	(11 802)
(11 263)	(13 058)
-	-
(11 263)	(13 058)
12 866	25 924
1 603	12 866

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Name of the Issuer:

Period covered by the financial statements:

Level of rounding:

Feerum S.A.
01.01.2023 - 31.12.2023	Reporting currency	Polish zloty (PLN)

all amounts are expressed in thousands of Polish zloty (unless otherwise indicated)

NOTES TO THE FINANCIAL STATEMENTS

Information general

1. Information about the Issuer

FEERUM Spółka Akcyjna [hereinafter referred to as "the Company"] was established by a Notarial Deed of 15.01.2007r. The company is entered in the Register of Entrepreneurs of the National Court Register in the Court of District Court for the City of Wrocław-Fabryczna - IX Economic Division under KRS number

0000280189. The company has been assigned the statistical number REGON 020517408.

The Company's registered office is located at ul. Okrzei 6 in Chojnów 59-225. The Company's registered office is also the principal place of business.

The Company's shares are listed on the Warsaw Stock Exchange. Pursuant to an agreement concluded, as of 18 December 2023, the function of market maker for the shares of the Parent Company is performed by Santander Bank Polska Spółka Akcyjna - Santander Biuro Maklerskie - a separate organisational unit of Santander Bank Polska Spółka Akcyjna with its registered office in Warsaw (KRS 0000008723).

1. Information on restructuring transformations of the Company

In October 2012, the Company's share capital was increased from the initial amount of PLN 4,673 thousand to PLN 25,683 thousand through the issue of series C and D shares (the capital increase was registered on 4 October 2012 and 23 October 2012 respectively). The shares of the new issues were taken up by Daniel Janusz and Magdalena Łabudzka-Janusz in exchange for cash and in-kind contributions in the form of shares in the share capital of Feer-Pol sp. z o.o. As a result of the above actions, the following was created

Group, in which the Company acted as the parent company of two companies

subsidiaries: Feer-Pol sp. z o.o. and (indirectly through Feer-Pol sp. z o.o.) Pearl Corporation Sp. z o.o. SKA (legal successor of Pol-Silos sp. z o.o.).

On 27 May 2013, Pearl Corporation Limited Liability Company was acquired by FEERUM S.A..

As a result of further restructuring activities of the FEERUM Capital Group, Pol-Silos Sp. z o.o. was transformed into Pearl Corporation Sp.z. o.o. SKA. The company was entered in the National Court Register on 17 September 2013.

As a result of further restructuring measures of the FEERUM Group, Pearl Corporation Sp. z. o.o. was transformed. SKA. into Pearl Invest Sp. z. o.o. The company became a legal entity on 14 January 2014.

On 27 March 2014, a merger was registered on the basis of Article 492 §1 item 1 of the CCC by transferring all the assets of the company Pearl Invest Sp. z o.o. (target company) to the company Feer- Pol Sp. z o.o. (the target company) for the shares that the target company issued to the shareholder of the target company on the basis of the resolution of the AGM on the increase of the share capital and the amendment of the articles of association of 6 February 2014 and the resolution on the merger of 28 February 2014.

On 13 May 2014, the merger of Feerum S.A (Acquiring Company) with its subsidiaries Feer-pol Sp. z

1. and Pearl Corporation Sp. z o.o. was registered in the National Court Register. (Acquired). The merger took place pursuant to Article 492 § 1(1), i.e. by transferring all the assets of the Acquired Companies to the Acquiring Company. Due to the fact that the Acquiring Company was the only shareholder of the Acquired Companies, the merger of the companies was carried out under a simplified procedure, pursuant to Article 516 § 6 of the CCC. Pursuant to Article 515 §1 of the Companies Act, the merger was carried out without an increase in the share capital of the Acquiring Company (RB No. 24/2014).

The aim of the restructuring activities was to create a simplified and modern organisational structure, to streamline operations and to increase the efficiency of the Acquiring Company in all areas of its business. In connection with the implementation of the final stage of restructuring, the subsidiaries do not continue their operations. The above changes did not result in the discontinuation of any of the activities carried out by the existing Group companies.

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Name of the Issuer:

Period covered by the financial statements:

Level of rounding:

Feerum S.A.
01.01.2023 - 31.12.2023	Reporting currency	Polish zloty (PLN)

all amounts are expressed in thousands of Polish zloty (unless otherwise indicated)

1. Information on subsidiaries of Feerum S.A.

On 21 July 2015, by notarial deed Rep.A 3501/2015, a subsidiary company was established

"Feerum Agro" Sp. z o.o. [hereinafter referred to as 'Subsidiary'], of which Feerum S.A. is a 100% shareholder. The subsidiary was entered in the National Court Register on 5 October 2015 under the

KRS number 0000578319. The Company's registered office is located at ul. Okrzei 6 in Chojnów 59-225. Its core business is post-harvest service activities.

On 17 May 2016, the Extraordinary Meeting of Shareholders of the Company adopted a resolution on changing the name of the Company "Feerum Agro" Sp. z o.o. to "Feerum Yellow Energy" Sp. z o.o. Pursuant to article 255 par.1 of the Commercial Companies Code, the adopted resolution came into force on the day the change was registered by the registry court, i.e. on 10.11.2016.

In November 2017, a self-balancing branch of Feerum S.A., based in Dar es Salaam, was established in Tanzania. The branch is registered and operated in accordance with Tanzanian law and has obtained all legally required licences and permits for the silo project. Currently, the Feerum Tanzania Branch does not carry out any commercial, organisational or investment activities regarding the project for which it was originally established. The branch remains ready to commence operations.

In connection with the business activity planned in international markets, on 04.01.2024, the Company paid the share capital of the company established and operating in Egypt - Feerum Egypt Company for Silos and Storage (S.A.E) in part amounting to EGP 5,000,000. As a consequence of the above operation, the Company became the owner of 50% of the shares in the joint stock company established and operating under Egyptian law. The Company is entitled to appoint three of the seven directors of Feerum Egypt, including the Managing Director (CEO). The Company appointed Janusz Musialski (managing director), Daniel Janusz and Piotr Wielesik to the above positions.

1. Composition of the Company's Management Board and Supervisory Board

The Company's Board of Directors at the date the financial statements were approved for publication consisted of:

• Daniel Wojciech Janusz - Chairman of the Management Board,
• Piotr Paweł Wielesik - Member of the Management Board.

The composition of the Company's Management Board did not change during the period under review. On 29 June 2020, the Company's Supervisory Board adopted resolutions to appoint the existing members of the Management Board for a further term of 5 years. The aforementioned resolutions entered into force on the date of adoption. According to the declaration submitted by the Members of the Management Board, they do not conduct any activity competitive to the Company, nor are they partners in a competitive civil or partnership, nor are they members of a body of a competitive capital company or any other competitive legal entity. The Members of the Management Board have not been entered in the Register of Insolvent Debtors maintained pursuant to the Act of 20 August 1997 on the National Court Register (Journal of Laws of 2019, item 1500).(RB 28/2020)

As at the date of approval of the financial statements for publication, the Company's Supervisory Board consisted of entered:

• Magdalena Łabudzka -Janusz - Chairman of the Supervisory Board,
• Henryk Chojnacki - Deputy Chairman of the Supervisory Board,
• Jakub Rzucidło - Secretary of the Supervisory Board,
• Maciej Janusz - Member of the Supervisory Board,
• Jakub Marcinowski - Member of the Supervisory Board,

The composition of the Company's Supervisory Board did not change during the period under review.

Pursuant to the provisions of Article 128 and Article 129 of the Act on Statutory Auditors, Audit Firms and Public Supervision of 11 May 2017 (Journal of Laws of 2020, item 1415, as amended), the Audit Committee functions within the Company's Supervisory Board with the following composition:

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