Fabryki Mebli FORTE S A : Report of the Supervisory Board of FABRYKI MEBLI “FORTE” S.A. for the financial year beginning on 1 January 2022 and ending on 31 March 2023

Appendix to Resolution No 23/2023 of the Supervisory Board

of FABRYKI MEBLI "FORTE" S.A. dated 9 August 2023

REPORT OF THE SUPERVISORY BOARD

OF FABRYKI MEBLI "FORTE" S.A. FOR THE FINANCIAL YEAR BEGINNING ON

1 JANUARY 2022 AND ENDING ON 31 MARCH 2023

The Report of the Supervisory Board of FABRYKI MEBLI "FORTE" S.A. (hereinafter referred to as: Board or Supervisory Board) has been prepared pursuant to Article 382 § 311 of the Code of Commercial Companies (hereinafter referred to as: CCC) and pursuant to Rule 2.11. of the Best Practice for WSE Listed Companies 2021 (hereinafter referred to as: Best Practice), and comprises:

1. A report on the assessment of:
2. 1. the Management Board's report on the operations of the FABRYKI MEBLI "FORTE" S.A. Capital Group (hereinafter referred to as: Capital Group or Group) in the financial year beginning on 1 January 2022 and ending on 31 March 2023, which includes the Management Board's report on the operations of FABRYKI MEBLI "FORTE" S.A. (hereinafter referred to as: FORTE or Company) in the financial year beginning on 1 January 2022 and ending on 31 March 2023,
   2. the financial statements of the Company for the financial year beginning on 1 January 2022 and ending on 31 March 2023,
   3. the consolidated financial statements of the Capital Group for the financial year beginning on 1 January 2022 and ending on 31 March 2023,
   4. the Management Board's motion concerning coverage of FORTE's net loss for the financial year beginning on 1 January 2022 and ending on 31 March 2023.

1. A report of the Supervisory Board on its activities in the financial year covering the period from 1 January 2022 to 31 March 2023, containing
2. 1. information on the composition of the Board and its committee, in accordance with Rule 2.11.1 of the Best Practice,
   2. a summary of the activities of the Board and its committee, in accordance with Rule 2.11.2 of the Best Practice,
   3. an assessment of the Company's standing, at a consolidated level, including an assessment of internal control systems, risk management, compliance and the

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internal audit function, in accordance with Rule 2.11.3. of the Best Practice and Article 382 § 31 (2) of the CCC,

1. an assessment of the Company's adherence to the corporate governance principles and the manner of the Company's fulfilment of its disclosure obligations, in accordance with Rule 2.11.4 of the Best Practice,
2. an assessment of the reasonableness of expenditure referred to in Rule 1.5 of the Best Practice, in accordance with Rule 2.11.5 of the Best Practice,
3. information on the progress in the implementation of the diversity policy with regard to the Management Board and the Supervisory Board, including the achievement of the objectives referred to in Rule 2.1 of the Best Practice, in accordance with Rule 2.11.6 of the Best Practice,
4. an assessment of the Management Board's fulfilment of the obligations referred to in Article 3801 of the CCC,
5. an assessment of the manner in which the Management Board prepares or provides the Supervisory Board with information, documents, reports or explanations requested pursuant to Article 382 § 4 of the CCC,
6. information on the total remuneration payable by the Company for any audits commissioned by the Supervisory Board during the financial year pursuant to Article 3821 of the CCC.

Re item I.

Report on the assessment of the Management Board's report on the Capital Group's operations, which includes the Management Board's report on the Company's operations in the financial year beginning on 1 January 2022 and ending on 31 March 2023, the financial statements of the Company for the financial year beginning on 1 January 2022 and ending on 31 March 2023, the consolidated financial statements of the Capital Group for the financial year beginning on 1 January 2022 and ending on 31 March 2023, the Management Board's motion concerning coverage of the Company's net loss for the financial year beginning on 1 January 2022 and ending on 31 March 2023.

Assessment and audit of reports by the Supervisory Board

Acting pursuant to Article 382 §3 and §31 (1) and (2) of the CCC and § 4 section 2(e) of the

Bylaws of the Supervisory Board, the Supervisory Board assessed:

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1. the Management Board's report on the Capital Group's operations in the financial year beginning on 1 January 2022 and ending on 31 March 2023, including the
   Management Board's report on the Company's operations in the financial year beginning on 1 January 2022 and ending on 31 March 2023,
2. the financial statements of FORTE for the financial year beginning on 1 January
   2022 and ending on 31 March 2023, which comprise:
3. 1. a statement of financial situation (balance sheet) prepared as at 31 March 2023, showing a total balance of assets and liabilities in the amount of PLN 1,006,812 thousand (say: one billion six million eight hundred and twelve thousand zlotys),
   2. a profit and loss account for the financial year beginning on 1 January 2022 and ending on 31 March 2023, showing a net loss of PLN 104,837 thousand (say: one hundred and four million eight hundred and thirty seven thousand zlotys),
   3. a statement of comprehensive income for the financial year beginning on 1 January 2022 and ending on 31 March 2023, showing total net income of PLN -57,748 thousand (say: minus fifty seven million seven hundred and forty eight thousand zlotys),
   4. a statement of changes in equity for the financial year beginning on 1 January 2022 and ending on 31 March 2023, showing a decrease in equity of PLN 105,610 thousand (say: one hundred and five million six hundred and ten thousand zlotys),
   5. a cash flow statement for the financial year beginning on 1 January 2022 and ending on 31 March 2023, showing a net increase in cash and cash equivalents of PLN 6,834 thousand (say: six million eight hundred and thirty four thousand zlotys),
   6. accounting principles (policies) and additional explanatory notes.
4. the consolidated financial statements of the Capital Group for the financial year beginning on 1 January 2022 and ending on 31 March 2023, which comprise:
5. 1. a consolidated statement of financial situation (balance sheet) prepared as at 31 March 2023, showing a total balance of assets and liabilities in the amount of PLN 1,496,103 thousand (say: one billion four hundred and ninety six million one hundred and three thousand zlotys),

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1. a consolidated profit and loss account for the financial year ending on 31 March 2023, showing net profit of PLN 87,642 thousand (say: eighty seven million six hundred and forty two thousand zlotys),
2. a consolidated statement of comprehensive income for the financial year ending on 31 March 2023, showing total net income of PLN 135,020 thousand (say: one hundred thirty five million twenty thousand zlotys),
3. a consolidated statement of changes in equity for the financial year ending on 31 March 2023, showing an increase in equity of PLN 87,155 thousand (say: eighty seven million one hundred and fifty five thousand zlotys),
4. a consolidated cash flow statement for the financial year ending on 31 March 2023, showing a net increase in cash and cash equivalents of PLN 757 thousand (say: seven hundred and fifty seven thousand zlotys),
5. accounting principles (policies) and additional explanatory notes.

In making its assessment, the Supervisory Board had been made familiar with the results of the audit conducted by the Company's and the Capital Group's auditor and had received the reports of the independent auditor, i.e. MAZARS AUDYT Sp. z o. o. with its registered office in Warsaw on the audit of the Company's annual separate financial statements and the audit of the Capital Group's annual consolidated financial statements for the financial year ending on 31 March 2023. In making an assessment-related decision, the Supervisory Board had also taken into account information from the Audit Committee on the status of preparation of reports for the financial year ending on 31 March 2023 and the materials submitted to the Audit Committee by the Company's and Capital Group's auditor. Members of the Supervisory Board who are not members of the Audit Committee had participated in the meetings of the Audit Committee with the Company's and Capital Group's auditors. In addition, the Audit Committee had been updated by the Member of the Management Board responsible for the preparation of financial statements and by the Company's Chief Accountant on the status of preparation of the Company's and the Capital Group's statements.

Having performed the analysis, the Supervisory Board concludes that the Management Board's report on the Capital Group's operations in the financial year beginning on 1 January 2022 and ending on 31 March 2023, which includes the Management Board's report on the Company's operations in the financial year beginning on 1 January 2022 and ending on 31 March 2023, the financial statements of FORTE for the financial year beginning on 1 January 2022 and ending on 31 March 2023 and the consolidated financial statements of the Capital Group for the financial year beginning on 1 January 2022 and ending on 31 March 2023 present a clear view of the financial standing and are consistent with the books, the documents

and the facts. In the Supervisory Board's opinion, the information presented in those 4

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documents gives a fair and correct overview of the Company's and the Capital Group's operating results, as well as the Company's and the Capital Group's asset and financial position. The Supervisory Board recommends that the General Meeting approve the documents.

The Supervisory Board has also read the Company's and the Capital Group's Report on non- financial information for the financial year covering the period from 1 January 2022 to 31 March 2023, prepared in accordance with Article 49(b) of the Accounting Act, which forms a separate document and is also an integral part of the annual report.

Assessment of the Management Board's motion concerning coverage of loss

The Supervisory Board has positively assessed the motion of the Management Board of FORTE dated 2 August 2023 concerning coverage of loss for the financial year covering the period from 1 January 2022 to 31 March 2023, proposing that net loss of PLN 104,837 thousand (say: one hundred four million eight hundred and thirty seven thousand zlotys) be covered from the Company's reserve capital.

The Supervisory Board recommends that the General Meeting grant all Members of the Management Board, i.e. Maciej Formanowicz, Maria Małgorzata Florczuk, Mariusz Jacek Giada, Walter Stevens and Andreas Disch, discharge for the performance of their duties in the financial year covering the period from 1 January 2022 to 31 March 2023.

Re item II

Report of the Supervisory Board on its activities in the financial year covering the period from 1 January 2022 to 31 March 2023

1. Information on the composition of the Board and its Committee, in accordance with Rule 2.11.1 of the Best Practice

Supervisory Board

In the financial year covering the period from 1 January 2022 to 31 March 2023, the following changes took place in the Company's Supervisory Board:

On 4 January 2022, the Extraordinary General Meeting decided to dismiss Mr Jacek Tucharz from the position of a Supervisory Board Member and, at the same time, adopted resolutions to appoint Mr Jakub Papierski and Ms Agnieszka Zalewska to the Supervisory Board of the current term of office (2018-22).

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