254900GV09M89EJG6681-2023-12-31-en

s.c. U.C.M. Reșița s.a.

(in judicial reorganisation, en redressement)

Separate Financial Statements

prepared in accordance with the

Order of the Minister of Finance no. 2844/2016

DECEMBER 31, 2023

S.C. U.C.M. Reșița s.a.

(in judicial reorganisation, en redressement)

Separate Financial Statements on December 31, 2023

(all amounts are given in lei (RON) unless otherwise stated)

Contents

Yearly Report of Judicial Administrator page 2-50

Statement of Judicial Administrator page 51

Statement of Financial Position page 52

Statement of Comprehensive Income page 53

Statement of Changes in Shareholders’ Equity page 54

Statement of Cash Flows page 55

Economic - Financial Indicators page 56

Explanatory Notes to the Yearly Financial

Statements page 57-103

s.c. U.C.M. Reşiţa s.a.

(in judicial reorganisation, en redressement)

Yearly report of Judicial Administrator

for the accounting year ended on December 31, 2023

(all amounts are given in lei (RON) unless otherwise stated)

YEARLY REPORT

of Judicial Administrator

for the accounting year 2023

I. Non-financial declaration

1. Presentation of SC UCM Reșița SA

UCM Reșița SA, a company located in the southwestern part of Romania, was founded on 3 July

1771 by the first kilns and forges, which is the oldest industrial unit in Romania and one of the

oldest in Europe. It is worth mentioning that, at the time of their inauguration (July 3, 1771), the

factories in Reşiţa overtook the founding of famous factories such as Krupp Germany (1811),

Vitkovice (1829), Donavitz (1836), MAN (1834), Sulzer) Burmeister Wain (1843), Skoda (1851).

If the beginning was devoted to the metallurgical sector, the machine building sector gradually

developed, reaching to be preponderent in the last quarter of the nineteenth century. The two

sectors coexisted for a long time completing each other within the same fully integrated unit.

SC UCM Reșița SA, the continuation of the activity of the machine building sector in the Reşiţa

industrial complex, as it is known today, is the result of many years of experience in the

construction of machinery, transport, energy, metallurgical and chemical industry.

Since 1960, it has designed and built over 90% of the national hydropower equipment, putting in

operation more than 6,325 MW installed power, representing 326 hydro-aggregates. The plant has

accumulated over time, a distinct culture and has reached, both in the country and abroad, a special

reputation based on tradition, competence and quality.

In 1991, according to Government Decision no. 1296/1990, UCM Reșița becomes a public limited

company and it is listed on the Bucharest Stock Exchange since 1997.

UCM Reșița SA was privatized in 2003, through the conclusion of the share sale-purchase contract

no. 57 / 23.12.2003, between the Authority for Privatization and Shareholding Administration

(APAPS), as the seller, and the consortium consisting of the Swiss company INET AG and the

Association of Employees UCM Reșița SA as buyers.

According to the Conclusion of the hearing of 06.12.2011, in the file 75017/3/2011 the Bucharest

Court of Law ordered the admission of the request regarding the opening of the insolvency

procedure on UCM Reșița, leaving to the company the right to conduct the activity, to administer

the assets, rights maintained under the supervision of the appointed judicial administrator named

by the syndic judge.

On 26.10.2021, the Assembly of Creditors approved the Reorganization Plan of the activity of the

debtor UCM Reșița SA proposed by the Judicial Administrator.

On 01.02.2022 by Civil Sentence no. 351 of 01.02.2022 the syndic judge confirmed the

Reorganization Plan as approved by the Creditors' Assembly on 26.10.2021.

s.c. U.C.M. Reşiţa s.a.

(in judicial reorganisation, en redressement)

Yearly report of Judicial Administrator

for the accounting year ended on December 31, 2023

(all amounts are given in lei (RON) unless otherwise stated)

The company owns a total area of 52,4 hectares located on the two industrial platforms (ABC and

Câlnicel) as well as in other areas in the Municipality of Reşita and in Anina.

Moreover, the Company owns numerous other assets outside the current production sphere, both in

Reşiţa (Culture House, "Semenic" Extended Program Kindergarten, previously named Extended

Program Kindergarten no. 7, a studio apartment on Ion Corvin street, 239 apartments in former

non-family homes, etc.), as well as in Anina (Screw Factory).

The production activity of the Company can be structured on the following sectors of production:

 Turbine Division and Spare Parts (former Naval Section)

 The heavy mechanics section

 Electric Machinery Section I

 Electrical Machines Section II

 Sculpture section (preserved)

 Welded Assemblies Section and Mechanical Processing

 Heat Treatments Section

 Diesel locomotive section (preserved).

General Meeting of Shareholders

The General Meeting is the governing body of the Company through which the will of the

shareholders in any matter of interest to the Company is expressed.

By Civil Sentence no. 351/01.02.2022, pronounced by the Bucharest Court, it was decided that the

Company's activity during the reorganization will be led by the Judicial Administrator.

Therefore, the duties of the General Meeting of Shareholders were completely taken over by the

Creditors' Meeting, respectively the Creditors' Committee.

Management of the Company

By Civil Sentence no. 351/01.02.2022, pronounced by the Bucharest Court, the management of the

Company was taken over by the Judicial Administrator.

Thus, starting from 01.02.2022, the mandate of the Special Administrators (Mr. Aurel BĂRA and

Ms. Sorina Daniela POP), appointed on 15.12.2021 by the Extraordinary General Meeting of

Shareholders is limited to representing the interests of shareholders.

Creditors 'Committee and Creditors' Meeting

During the observation period, the documents, operations and payments made by the Company,

which do not fall under the usual conditions for carrying out the current activity, will be subject to

the approval of the Creditors' Committee.

The sale regulations related to the assets to be liquidated, according to the provisions of the

Reorganization Plan, are subject to the approval of the Creditors' Assembly.

Executive management of UCM Reșița S.A.

The executive management of the Company during 2023 had the following structure:

s.c. U.C.M. Reşiţa s.a.

(in judicial reorganisation, en redressement)

Yearly report of Judicial Administrator

for the accounting year ended on December 31, 2023

(all amounts are given in lei (RON) unless otherwise stated)

 Mr. Cosmin URSONIU – General Director

 Mrs. Liliana Nicoleta IONETE - Human Resources and Economic Director

 Mr. Cristian MURGU - Director of Production

In the last five years, no member of the administrative or executive management of the Company

was involved in litigation or administrative procedures.

Internal Audit

The internal audit objectives are:

 Objective insurance and counseling of the company's systems and activities in order to

make them more efficient

 Supporting the achievement of the company's objectives through a systematic and

methodical approach that evaluates and improves the effectiveness of the management

system, based on risk management, control and management processes.

Internal audit activity is exercised over all activities within the Company in accordance with the

approved Annual Internal Audit Plan or Audit Missions set up by the Special Administrator

outside the plan.

Internal auditing ensures greater efficiency through a more appropriate use of human and material

resources, as well as better coordination between the various departments of the Company.

2. Business model description

The main activity domain according to the National Economy Classification (NACE) is "the

manufacture of equipment for the production and use of mechanical power (except for engines for

aircraft, motor vehicles and motorcycles) - Code 281."

The main activity of the Company is "manufacture of engines and turbines (except for aircraft,

motor vehicles and motorcycles) - 2811 CAEN Code".

The company also provides technical assistance services for the rehabilitation and improvement of

existing engineering solutions, specializing in the fields related to its core business.

The main categories of products and services the Company carries out are:

 Hydroelectric units equipped with turbines of the type: Kaplan (up to 180 MW),

Francis (up to 170 MW), Bulb (up to 28 MW), Pelton (up to 20 MW) and related

installations (valves, regulators and groups pressure oil) and hydrogenerators with

auxiliary installations;

 Constructive design, technological design, assembly, service for manufactured

products / equipment;

 Asynchronous electric motors with power ranging from 500 to 10,000 KW;

synchronous motors and synchronous generators with power ranging from 500 to

12,500 KW; motors and DC generators with power ranging from 500 to 6000 KW;

s.c. U.C.M. Reşiţa s.a.

(in judicial reorganisation, en redressement)

Yearly report of Judicial Administrator

for the accounting year ended on December 31, 2023

(all amounts are given in lei (RON) unless otherwise stated)

 Welded assemblies (metal welding constructions / confections), for various

purposes;

 Spare parts and repairs / modernization / rehabilitation for all hydro and non-hydro

equipment;

 Hydromechanical equipment - repairs;

 Machining of forged parts,

 Destructive tests within the lab for destructive testing;

 Calibration / verification and repair of measuring instruments within the metrology

laboratory

 Thermal, thermochemical and galvanic treatments

Currently, the solution to pollution, global warming and ultimately to energy independence is

green energy. Compared to the electricity produced in classical power plants, the energy produced

in hydropower plants is clean, non-polluting.

Starting from these premises, all efforts are subordinated to the Company's mission, to be on the

Romanian market the main supplier of equipment for investment projects, re-technology and

repairs of the hydro-energetic facilities in the country.

3. Main suppliers

Depending on the ability to provide safe products / services, recommended for the manufacture of

items of high importance, UCM Reșița's suppliers are highlighted in three categories:

 Class A of those who meet between 10 and 15 points for the criteria imposed by

society;

 Class B, which consists of those who meet between 5 and 10 points for the criteria

imposed by the society;

 Class C among those who meet less than 5 points for the criteria imposed by society.

On 31.12.2023, the company has 173 established suppliers, out of which 144 are suppliers in the

country, 23 are suppliers of imported products and 6 are suppliers for external collaborations.

Of the domestic suppliers, 116 are in Class A capability and the rest in Class B. All external

suppliers are in Class A, and collaborative suppliers are 5 in Class A, and 1 supplier in Class B.

The main suppliers of UCM Reșița SA are:

-Inox Metal SSR- sheets, pipes, rounds, stainless steel fittings;

-Avenarius Agro GMBH– painting material

- Hidarom Sibiu - measuring and control devices, hydraulic equipment, assembly

devices