Aerostar S A : Half-Year Report as on 30 june 2022

AEROSTAR S.A.

BOARD OF

DIRECTORS'

REPORT

1st SEMESTER 2022

9, Condorilor Street,
Bacău 600302, Romania	Telephone/Fax number:
Web/e-mailwww.aerostar.ro, [e-mail]	004-0234575070/004-0234 572023	1

AEROSTAR S.A.

Identification data and field of activity

The Report of the Board of Directors was prepared in accordance with the provisions of Law 24/2017 referring the issuers of financial instruments and market operations and Regulation A.S.F. no. 5/2018 of the Financial Supervisory Authority, regarding the issuers of financial instruments and market operations, Appendix 14, respectively, the applicable reporting requirements and the guidelines described in the European Commission's Communication.

Date when the company was established:

April 17 1953

European Unique Identifier of the company

(EUID): ROONRC.J04/1137/1991,

LEI identification code as a legal entity is 315700G9KRN3B7XDBB73;

Subscribed and paid-up share capital: 48.728.784 RON;

Unique Registration Code 950531, code ISIN ROAEROACNOR5,

The activities are carried out at the

registered office, located in Bacău, 9

Condorilor Street, post code 600302;

Since January 2018, AEROSTAR also has a secondary registered place of business (workplace) within the premises of the International Airport of Iaşi;

The main field of activity of the company is production. The main object of activity of the company is "Manufacture of aircraft and spaceships" - code CAEN 3030.

The individual financial statements prepared for the first semester of 2022 are accompanied by the external independent financial auditor's report.

Applicable accounting standards:

The individual financial statements are prepared in accordance with the provisions of the International Financial Reporting Standards (IFRS) adopted by the European Union, the Accounting Law no. 82/1991, republished with its subsequent amendments and supplements and they are presented in compliance with the requirements of IAS 1 (Note 3);

AEROSTAR S.A. is listed on the Bucharest Stock Exchange under the symbol ARS, all the shares being issued in the Standard category. The record of its shares and shareholders is kept, as provided by law, by S.C. Depozitarul

Central S.A. Bucureşti.

Reporting Period: 1st semester, 1 January - 30 June 2022.

The purpose of this report is to inform the investors about the changes in the company's status and performance that took place in the reporting period January-June 2022, as well as regarding the foreseeable evolutions on the defence and aviation industry market and in relation to the company's development opportunities.

Web/e-mailwww.aerostar.ro,[e-mail]	2

AEROSTAR S.A.

About the COMPANY

AEROSTAR has a recognized footprint in the aviation field, by actively taking part in global manufacturing programmes in the aeronautical industry and maintenance programmes at industrial level for civil and military aircraft.

Having an experience of almost 7 decades, the AEROSTAR business focuses on improving its performance through the employees' continuous improvement and development in the spirit of integration, innovation and initiative. We focus on accomplishing our mission to meet our

customers' requirements and expectations, via continual improvement actions at all levels.

The information about the company is disseminated simultaneously, as per the provisions of the Corporate Governance Code, both in Romanian and in English. The shareholders can obtain information about AEROSTAR S.A. and the main events on the company's website www.aerostar.ro.

I-ST SEMESTER 2022

Board of Directors' Report ……..…….………………………………………………………4

Individual Financial Statements External Auditor's Revising Report

Web/e-mailwww.aerostar.ro,[e-mail]

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AEROSTAR S.A.

AEROSTAR S.A. in a glance

I-ST SEMESTER

January-June 2022

BUSINESS LINES

SALES

NUMBER OF EMPLOYEES

2%		Manufacture of aviation
18%
	products
		MRO commercial aircraft
200.412 k lei	52%	Defence systems
28%		Other products and
		services

EXPORT

3%
3%		Romania
12%	26%
Europe
147.748 k lei		Asia
	Africa

Canada+USA

56%

ARS SHARE	INVESTMENTS
7.8 lei	3.913 k lei

1797

ATTENDANCES IN TRAINING SESSIONS

2635

WORK ACCIDENTS

ZERO

SALARY INCREASES

15,5%

PRIORITIES

CONSOLIDATING AEROSTAR'S POSITION AND ACTIVITIES GLOBALLY;

MAINTAINING THE STABILITY OF THE WORKFORCE;

MITIGATING THE ENVIRONMENTAL IMPACT VIA A CONTINUOUS IMPROVEMENT OF THE INDICATORS.

Web/e-mailwww.aerostar.ro,[e-mail]

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AEROSTAR S.A.

Significant events during the reporting period

13 March

The negotiations between the Administration of the Company AEROSTAR S.A. and the Employees' Committee for the Collective Labour Agreement 2022-2024 were finalized. This Agreement stipulates a package of benefits designed to cover the dynamics of the employees' needs and requests as well as salary increases of 15.5 % . The new provisions have been enforced as of April 1, 2022;

16 June

The Ordinary General Meeting of the Shareholders took place in accordance with the applicable legal regulations. The shareholders of the company AEROSTAR S.A. approved unanimously by the votes validly cast (secret votes) the extension of the mandate for:

Grigore HOROI, Mihai DEJU and Daniel BOTEZ as members of the Audit Committee, appointed by the Resolutions of the General Meeting of 13 August 2020 as per article 65 of Law no. 162/2017 regarding the statutory audit of the annual financial statements and the consolidated annual financial statements, until 10th of July 2024.

The shareholders of the company AEROSTAR S.A. approved unanimously by the votes validly cast (secret votes) the decisions to appoint the Company Auditeval Consulting S.R.L. as a financial auditor and to conclude the financial audit agreement for a minimum period of 1 (one) year, with the option to extend it by an Additional Act approved by the Company's Board of Directors.

The draft resolutions, the material subject to the approval of AGA and the forms requested by AEROSTAR are uploaded on the company's website www.aerostar.ro, under Section Investors Relation.

Events after the reporting date

After the reporting date there were no records of events likely to impact the financial statements concluded on 30 June 2022.

Business Model

The policy of the company's top management is focused on maintaining a solid capital basis in order to support the company's continuous development and to increase its opportunities in the context of the global market and its competitive edge via quality, capabilities, high technologies for a continuous organized development and implicitly to reach its strategic objectives.

The business model adopted by the company is an integrated business model, based on a RISK-based mentality.

Web/e-mailwww.aerostar.ro,[e-mail]

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