MONBAT AD
Separate Financial Statements
Annual Separate Activity Report
Independent Auditor’s Report
31 December 2022

Table of contents
Page
Separate financial statements
Separate statement of Profit or Loss 1
Separate statement of comprehensive income 2
Separate statement of financial position 3
Separate statement of changes in equity 5
Separate statement of cash flows 6
Notes to the separate financial statements 7-88
Annual separate activity report i
Corporate governance statement acc. to art. 100n, (8) of POSA ii
Declaration on the implementation of the remuneration policy iii
Declaration under Art. 100n, para. 4, item 4 of the Law on Public Offering of
Securities to the Shareholders of Monbat AD iv

Monbat AD 1
Separate financial statements
31 December 2022
The notes on pages 7 to 88 are an integral part of these financial statements.
Separate Statement of Profit or Loss for the year ended 31
December 2022
Note 2022 2021
BGN ‘000 BGN ‘000
Revenue from contracts with customers 25 327 007 351 010
Other operating income 26 8 094 1 550
Gain on the sale of non-current assets 30 9 24
Expenses for materials 27 (204 965) (216 514)
Hired services expenses 29 (22 840) (22 570)
Payroll expenses 18.1 (17 231) (17 780)
Depreciation and amortization expenses 4, 5, 8 (6 681) (6 729)
Impairment of non-financial assets 6 (3 106) (19 484)
Changes in the balance of finished goods and
work in progress 5 487 (1 751)
Costs of goods sold and other current assets 28 (77 870) (69 865)
Impairment of financial assets 12, 37 (1 730) (1 487)
Other expenses 31 (1 997) (2 938)
Operating profit/ (loss) 4 177 (6 534)
Finance costs 32 (6 604) (5 874)
Finance income 32 2 088 1 572
Income from the sale of investments 485 -
Dividend income - 8 455
Financial instruments income 34 589 2 324
Other financial items 33 647 532
Profit before tax 1 382 475
Income tax gain/ (expense) 9 (163) 721
Profit for the year 1 219 1 196
BGN BGN
Earnings per share 35.1 0.03 0.03
Prepared on 30 th March 2023 by: Belnikolov
and partners OOD – Petya Belnikolova
Procurator: Petar Petrov
Auditor’s report issued:
Grant Thornton OOD, audit firm, registration No 032
Mariy Apostolov, Managing Partner
Silvia Dinova, Registered Auditor responsible for the audit

Monbat AD 2
Separate financial statements
31 December 2022
The notes on pages 7 to 88 are an integral part of these financial statements.
Separate statement of comprehensive income for the year
ended 31 December 2022
Notes 2022 2021
BGN
‘000
BGN
‘000
Profit for the year 1 219 1 196
Other comprehensive income - -
Total comprehensive income for the year 1 219 1 196
Prepared on 30 th March 2023 by: Belnikolov
and partners OOD – Petya Belnikolova
Procurator: Petar Petrov
Auditor’s report issued:
Grant Thornton OOD, audit firm, registration No 032
Mariy Apostolov, Managing Partner
Silvia Dinova, Registered Auditor responsible for the audit

Monbat AD 3
Separate financial statements
31 December 2022
The notes on pages 7 to 88 are an integral part of these financial statements.
Separate statement of financial position as at 31
December 2022
Assets Notes
31
December 31 December
2022 2021
BGN ‘000 BGN ‘000
Non-current assets
Intangible assets 4 7 799 5 440
Property, plant and equipment 5 48 619 50 610
Investments in subsidiaries and
associates 6 83 051 109 963
Right-of-use assets 8 2 358 1 123
Deferred tax assets 9 1 914 1 408
Non-current assets 143 741 168 544
Current assets
Short-term related party
receivables 37.1 93 384 88 746
Trade receivables 12 44 725 50 345
Inventories 10 36 043 32 808
Tax receivables 13 4 472 3 376
Prepayments 1 843 785
Short-term financial assets 11 149 1 897
Income tax receivables 230 -
Other receivables 14 2 211 2 111
Cash and cash equivalents 15 2 527 4 237
Current assets 185 584 184 305
Non-current assets held for sale 7 38 867 -
Total assets 368 192 352 849
Prepared on 30 th March 2023 by: Belnikolov
and partners OOD – Petya Belnikolova
Procurator: Petar Petrov
Auditor’s report issued:
Grant Thornton OOD, audit firm, registration No 032
Mariy Apostolov, Managing Partner
Silvia Dinova, Registered Auditor responsible for the audit

Monbat AD 4
Separate financial statements
31 December 2022
The notes on pages 7 to 88 are an integral part of these financial statements.
Separate statement of financial position as at 31
December 2022 (continued)
31
December
31
December
Equity and liabilities Notes 2022 2021
BGN ‘000 BGN ‘000
Equity
Share capital 16.1 38 973 39 000
Share premium 16.2 28 498 28 611
General reserves 16.3 63 866 63 866
Retained earnings 27 235 31 516
Total equity 158 572 162 993
Liabilities
Non-current liabilities
Convertible bond 21 42 265 51 458
Long-term borrowings 19 12 614 13 205
Fair value of conversion option 21 5 280 5 867
Long-term lease liabilities 8 1 524 385
Long-term government grants 20 295 465
Warranty provisions 17 185 300
Non-current liabilities 62 163 71 680
Current liabilities
Short-term borrowings 19 71 136 68 589
Short-term related party
payables 37.2 39 750 27 858
Trade payables 22 11 282 14 151
Convertible Bond 21 10 959 -
Contract liabilities 24.1 3 729 1 619
Personnel payables 18.2 1 781 2 239
Warranty provisions 17 301 997
Corporate income tax payable 9 - 757
Short-term lease liabilities 8 854 636
Deferred revenue 248 134
Tax liabilities 23 73 126
Short-term government grants 20 204 188
Derivatives 24.3 364 -
Other liabilities 24.2 6 776 882
Current liabilities 147 457 118 176
Total liabilities 209 620 189 856
Total equity and liabilities 368 192 352 849
Prepared on 30 th March 2023 by: Belnikolov
and partners OOD – Petya Belnikolova
Procurator: Petar Petrov
Auditor’s report issued:
Grant Thornton OOD, audit firm, registration No 032
Mariy Apostolov, Managing Partner
Silvia Dinova, Registered Auditor responsible for the audit

Monbat AD 5
Separate financial statements
31 December 2022
The notes on pages 7 to 88 are an integral part of these financial statements.
Separate statement of changes in equity for the year ended 31 December 2022
All amounts are presented in BGN ‘000
Balance on 1 st January 2022
Share capital Share
premium
General
reserves
Retained earnings Total equity
39 000 28 611 63 866 31 516 162 993
Dividends - - - (5 500) (5 500)
Repurchased own shares (27) (113) - - (140)
Transactions with owners (27) (113) - (5 500) (5 640)
Profit for the year - - - 1 219 1 219
Total comprehensive income for the year - - - 1 219 1 219
Balance on 31 st December 2022 38 973 28 498 63 866 27 235 158 572
All amounts are presented in BGN ‘000 Share capital Share
premium
General
reserves
Retained earnings Total equity
Balance on 1st January 2021 39 000 28 611 63 866 37 320 168 797
Dividends - - - (7 000) (7 000)
Transactions with owners - - - (7 000) (7 000)
Profit for the year - - - 1 196 1 196
Total comprehensive income for the year - - - 1 196 1 196
Balance on 31st December 2021 39 000 28 611 63 866 31 516 162 993
Prepared on 30 th March 2023 by: Belnikolov
and partners OOD – Petya Belnikolova
Procurator: Petar Petrov
Auditor’s report issued:
Grant Thornton OOD, audit firm, registration No 032
Mariy Apostolov, Managing Partner
Silvia Dinova, Registered Auditor responsible for the audit

Monbat AD 6
Separate financial statements
31 December 2022
The notes on pages 7 to 88 are an integral part of these financial statements.
Separate statements of cash flows for the year ended
31 December 2022
Prepared on 30 th March 2023 by: Belnikolov
and partners OOD – Petya Belnikolova
Procurator: Petar Petrov
Auditor’s report issued:
Grant Thornton OOD, audit firm, registration No 032
Mariy Apostolov, Managing Partner
Silvia Dinova, Registered Auditor responsible for the audit
Notes 2022 2021
BGN ‘000 BGN ‘000
Operating activities
Cash receipts from customers 335 476 320 952
Cash paid to suppliers (323 178) (315 151)
Cash paid to employees and social security institutions (16 546) (16 603)
Payments related to employees’ personal income tax (1 037) (1 363)
Proceeds from tax refunds, net 30 024 29 700
Paid corporate income tax (1 657) (1 202)
Other cash payments for operating activities (1 111) (1 228)
Net cash flow from operating activities 21 971 15 105
Investment activities
Purchase of property, plant and equipment (3 945) (3 361)
Purchase of intangible assets (2 641) (506)
Acquisition and increase in the share capital of subsidiaries (14 954) (8 607)
Acquisition of associates - (8 019)
Acquisitions of shares in other entities - (1 471)
Proceeds from sale of shares in other entities 34 1 956 -
Loans granted (3 831) (6 669)
Proceeds from loan repayments 3 775 10 371
Interest received 238 911
Advances received for the sale of subsidiary 24.2 5 526 -
Net cash flow from investment activities (13 876) (17 351)
Financing activities
Proceeds from borrowings 39 171 826 128 455
Repayments of borrowings 39 (170 962) (128 115)
Repurchased own shares (140) -
Payment of principal of lease liabilities 8 (901) (657)
Interest paid (3 763) (3 532)
Dividend payment 35.2 (5 434) (6 990)
Other cash flow from financing activities (728) (436)
Net cash flow from financing activities (10 102) (11 275)
Net change in cash and cash equivalents (2 007) (13 521)
Cash and cash equivalents, beginning of the year 4 237 17 456
Foreign exchange profit on cash and cash equivalents 297 302
Cash and cash equivalents, end of the year 15 2 527 4 237

Monbat AD
Separate financial statements
31 December 2022
7
N otes to the separate financial statements
1. Corporate information
The main activities of Monbat AD (“The Company”) include manufacturing, maintenance
and sale of batteries; engineering and development activity; production and trade of
equipment used in battery manufacturing; domestic and foreign trade and establishment
of commercial networks; specialized stores and representative offices.
The Company is registered as a joint-stock company in c.c. 4636/1999 in SCC, with
UIC: 111028849 in the Bulgarian Trade Register.
The Company’s headquarters and registered address is: 32A Cherni Vrah bld., Sofia. The
correspondence address is: 32A Cherni Vrah bld., Sofia.
The Company was registered at the Bulgarian stock exchange on 22.12.2006.
The company is managed through a one-tier management system, consisting of Board of
Directors.
As at 31.12.2022, the composition of the Board of Directors of the Company is the
following:
1. Chavdar Donchev Danev – Chairman
2. Viktor Stanimirov Spiriev – Executive Member
3. Petar Nikolov Bozadzhiev
4. Petar Hristov Petrov
5. Evelina Slavcheva
6. Florian Huth
7. Kyle Anderson
The number of employees as at 31.12.2022 is 428 people.
As at 31.12.2022, the Company is being represented separately by Viktor Stanimirov
Spiriev and Petar Hristov Petrov.
The ultimate parent of the Company is Prista Oil Group B.V. Atanas Bobokov and Plamen
Bobokov are the individuals exercising joint control over Prista Oil Group B.V.
The management of the Company includes its Board of Directors and its procurators.
The principal place of the Company’s activity is the town of Montana, 76 Industrialna str.
2. Basis for the preparation of the financial statements
The separate financial statements have been prepared on a historical cost basis, except
for derivative financial instruments that are measured at fair value.
The separate financial statements of the Company (“the financial statements”) have been
prepared in accordance with International Financial Reporting Standards (as adopted by
the European Union (IFRS as adopted by the EU). Reporting framework "IFRS as adopted
by the EU" is essentially the defined national basis of accounting "IAS, as adopted by the
EU", specified in the Bulgarian Accountancy Act and defined in paragraph 8 of its Additional
provisions.
The separate financial statements are presented in Bulgarian leva (BGN), which is also the
functional currency of the Company. All amounts are presented in thousand Bulgarian leva
(T BGN ‘000) (including comparative information for 20 21) unless otherwise stated.

Monbat AD
Separate financial statements
31 December 2022
8
In addition, when there is a retrospective restatement or reclassification of items in the
financial statements, the Company presents an additional statement of financial position
at the beginning of the earliest presented period.
These are the separate financial statements of Monbat AD, where investments in
subsidiaries are presented at acquisition cost. In accordance with the requirements of IFRS
10 Consolidated Financial Statements and the Accountancy Act, Monbat AD prepares and
presents consolidated financial statements. The consolidated financial statements for the
year ended 31 December 2022 are in process of being prepared.
The conflict between Russian and Ukraine
On February 24 th , 2022, Russia has invaded Ukraine and the conflict quickly escalated as
the biggest war initiative since World War II. The conflict had a serious impact on the
international economy, mainly the fuel prices, the volatility of the world markets and
currency exchange rates. The EU and other countries outside of EU has issued sanctions
and restricted their trade partnerships with Russian and Belarusian individuals and
companies.
Monbat AD does not own or control investments, subsidiaries or other assets in Russia,
Belarus or Ukraine, but the Company has customers based in these countries.
To address the aforementioned war crisis and to limit its negative impact on 2022 results,
the Company has undertaken the following measures:
Risk assessment
• In 2021 there was increased demand for car batteries, mainly due to the
interrupted supply chains during the early stages of the Covid-19 pandemic.
Compared to the record year of 2021, 2022 saw a reduced demand for batteries
(also reflected as a reduction in revenue from contracts with customers), mainly
due to unfavourable economic conditions, especially in Europe, as a result of the
military conflict between Ukraine and Russia, and related inflationary trends,
including prices of all energy resources and market volatility and unfavourable
weather conditions in Europe, where the majority of the Company’s customers are
located (milder winter).
• The sales to Russian clients represent 2.6% of the total sales of the Company for
2022. Sales to Ukrainian customers are 2.5% of total sales (2021: Russia – 6.2%,
Ukraine and Belarus – around 1%).
• With regards to the supply chain, the Company is not directly dependent on
Russian, Ukrainian or Belarusian suppliers and has not experienced difficulties or
interruptions in the supply from Russian or Ukrainian counterparties, that have led
to interruptions in the production process.
• Due to the worldwide inflation and the market volatility, the average price of lead
on the London Metal Exchange was 2 049 EUR/MT (2021: 1 866 EUR/MT). Monbat
AD addresses the volatility and dependence of the price lead price by applying
standard indexation of the selling prices of its products to all counterparties.
• The Company’s main customers have not experienced financial difficulties directly
related to the pandemic or the military conflict in Ukraine. The collectability of
trade receivables at 31 December 2022 has been assessed as good.
• In order to ensure the collectability of its receivables from Ukrainian
counterparties, for which trade receivables insurance is not available, the
Company adopted a policy of 100% pre-shipment advances on all export sales to
Ukraine, following the start of the war conflict. Although there have been no
significant delays in the collection of trade receivables at the end of 2022 and
2021, the activities of several specific customers in Russia and Ukraine, where

Monbat AD
Separate financial statements
31 December 2022
9
delays in collections were already evident in prior periods, have been further
complicated by the military conflict. In this regard, the Company has recorded
impairment charges related to trade receivables from these customers amounting
to TEUR 260 (2021: TEUR 567). As at 31 December 2022 the Company has trade
receivables from Ukrainian and Russian customers (net of impairment) amounting
to TBGN 10,975 and liabilities, related to advances received, amounting to TBGN
2,081.
The Company analyzes on an ongoing basis all possible impacts of changing micro- and
macroeconomic conditions on the Company's future financial position and results of
operations. Inflationary processes, expressed in increased costs of direct materials, energy
and labour per unit of production, have a significant impact on the Company's operations.
The Company has been able to limit the effect of these negative impacts of the
macroeconomic environment by refining its customer and product mix (with a focus on
higher-margin products and markets) and, where necessary, applying an indexation of
selling prices to its customers.
Application of the going concern principle
The separate financial statements are prepared under the going concern principle and
taking into account the possible long-term effects of the continuing effects of the Covid-
19 coronavirus pandemic and the military conflict in Ukraine. It is likely that there will be
future impacts on the Company's activities related to the business model, supply chain,
legal and contractual relationships, employees, consumers and working capital as a result
of these worldwide events.
Under these circumstances, based on available information about the foreseeable future,
the Company's management has conducted a comprehensive analysis of the entity's ability
to continue its activities as a going concern. The analysis includes an assessment,
supported by the Company’s practical historical experience with dealing with financial
institutions, as well as by the entity’s ongoing negotiations and agreements with its loan
lenders (banks). As a results of the latter, it is expected, that the maturity of all short-
term loans (Note 19) will be renegotiated by a minimum of 12 months from their due date,
or they will be refinanced with a borrowed resource at maturity of at least 12 months.
In these circumstances, the Company's management expects that the Company has
sufficient financial resources to continue its operations in the near future and continues to
apply the going concern principle in preparing the separate financial statements.
2.1 New and amended standards and interpretations
The Company has adopted the following new standards, amendments and interpretations
to IFRS issued by the International Accounting Standards Board and endorsed by EU,
which are relevant to and effective for the Company's financial statements for the annual
period beginning 1 January 2022 but do not have a significant impact on the Company’s
financial performance or position:
• Amendments IFRS 3 Business Combinations, IAS 16 Property, Plant and Equipment
IAS 37 Provisions, Contingent Liabilities and Contingent Assets effective from 1
January 2022 adopted by the EU.
• Annual Improvements 2018-2020 effective from 1 January 2022 adopted by the
EU.

Monbat AD
Separate financial statements
31 December 2022
10
2.2 Standards, amendments and interpretations to existing standards that
are not yet effective and have not been adopted early by the Company
At the date of authorization of these financial statements, certain new standards,
amendments and interpretations to existing standards have been issued, but are not
effective or adopted by the EU for the financial year beginning on 1 January 2022 and
have not been applied early by the Company. They are not expected to have a material
impact on the Company’s financial statements. Management anticipates that all relevant
pronouncements will be adopted in the Company’s accounting policies for the first period
beginning after the effective date of the pronouncement
The changes refer to the following standards:
• IFRS 17 “Insurance Contracts” effective from 1 January 2023, adopted by the EU;
• Amendments to IAS 1 Presentation of Financial Statements and IFRS Practice
Statement 2: Disclosure of Accounting policies effective from 1 January 2023,
adopted by the EU;
• Amendments to IAS 8 Accounting policies, Changes in Accounting Estimates and
Errors: Definition of Accounting Estimates effective from 1 January 2023, adopted
by the EU;
• Amendments to IAS 12 Income Taxes: Deferred Tax related to Assets and
Liabilities arising from a Single Transaction effective from 1 January 2023
adopted by the EU;
• Amendments to IFRS 17 Insurance contracts: Initial Application of IFRS 17 and
IFRS 9 – Comparative Information effective from 1 January 2023 adopted by the
EU;
• Amendments to IAS 1 Presentation of Financial Statements: Classification of
Liabilities as Current or Non-current effective from not earlier than 1 January
2024 not yet adopted by the EU;
• Amendments to IFRS 16 Leases: Lease Liability in a Sale and Leaseback effective
not earlier than 1 January 2024 not yet adopted by the EU;
• IFRS 14 “Regulatory deferral accounts” effective from 1 January 2016, not
adopted by the EU.
3. Significant accounting policies
3.1. General
The most significant accounting policies that have been used in the preparation of these
financial statements are summarized below.
The separate financial statements have been prepared using the measurement bases
specified by IFRS for each type of asset, liability, income and expense. The measurement
bases are fully described in the accounting policies below to the separate financial
statement.
It should be noted that accounting estimates and assumptions are used for the preparation
of the separate financial statements. Although these estimates are based on information,
provided to management at the date of preparation of the separate financial statements,
actual results may ultimately differ from those estimates.

Monbat AD
Separate financial statements
31 December 2022
11
3.2. Presentation of financial statements
The separate financial statements are presented in accordance with IAS 1 “Presentation of
Financial Statements”. The Company has elected to present the separate statement of
comprehensive income in two statements: a separate statement of profit or loss and a
separate statement of comprehensive income.
Two comparative periods are presented in the separate statement of financial position
when the Company applies an accounting policy retrospectively, makes a retrospective
restatement of items in the financial statements or reclassifies items in the financial
statements and this has a material effect on the information in the separate statement of
financial position at the beginning of the previous period.
3.3. Investments in subsidiaries
Subsidiaries are entities under the control of the Company. An investor, regardless of the
nature of its participation in an entity (in the investee), defines whether it is a parent
company, by assessing whether it controls the investee.
An investor controls the investee when it is exposed to or has rights to variable returns
from its involvement with the investee and has the ability to affect that returns through
its power over the investee.
Therefore, an investor controls an entity (the investee) if and only if the investor has all
of the following:
a) power over an investee
b) exposure, or rights, to variable returns from its involvement with the investee
c) ability to use its power over the investee to affect the amount of the investor’s returns
The Company recognizes a dividend from a subsidiary in profit or loss in its separate
financial statements when the right to receive the dividend has been established.
In the Company's separate financial statements, investments in subsidiaries are measured
at cost less impairment losses (in accordance with IAS 27, paragraph 10 (a)). Investments
in subsidiaries are derecognized and the net result (proceeds from disposal less the
carrying amount of the investment) is recognized in profit or loss for the period in which
the Company loses control of the company in which it has invested.
A review for impairment of investments in subsidiaries is performed in accordance with
IAS 36 Impairment of assets.
3.4. Investments in associates
Associates are those entities over which the Company is able to exert significant influence,
but which are neither subsidiaries nor interests in a joint venture. Investments in
associates are initially recognized and subsequently measured at acquisition cost or in
accordance with IFRS 9 or using the equity method as described in IAS 28.
The Company recognizes a dividend from a jointly controlled entity or associate in profit
or loss in its separate financial statements when its right to receive the dividend is
established.
All subsequent changes in the investment share of the entity in the share capital of the
associated entity are recognized in the carrying amount of the investment.

Monbat AD
Separate financial statements
31 December 2022
12
In the cases when the share of the Company in the realized losses of the associated entity
exceed the size of its exposure in this entity, including the unprovided for receivables, the
Company shall not recognize its share in the subsequent losses of the associated entity,
unless the Company is not legally or factually liable or unless it has made payments on
behalf of the associated entity. In case, the latter generates profits in subsequent periods,
the Company shall recognize its share as much as the share of the profit exceeds the share
of the losses, which were not recognized previously.
3.5. Foreign currency transactions
Foreign currency transactions are translated into the functional currency of the Company
using the exchange rates prevailing at the dates of the transactions (spot exchange rate
as published by the Bulgarian National Bank). Foreign exchange gains and losses resulting
from the settlement of such transactions and from the re-measurement of monetary items
at year-end exchange rates are recognized in profit or loss.
Non-monetary items measured at historical cost are translated using the exchange rates
at the date of the transaction (not retranslated). Non-monetary items measured at fair
value in foreign currency are translated using the exchange rates at the date when fair
value was determined.
3.6. Revenue
The activity of the Company constitutes sale of goods, materials and services.
To determine whether to recognize revenue, the Company follows a 5-step process:
1. Identifying the contract with a customer
2. Identifying the performance obligations
3. Determining the transaction price
4. Allocating the transaction price to the performance obligations
5. Recognize revenue when/ as performance obligation(s) are satisfied.
Revenue is recognized either at a point in time or over time, when (or as) the Company
satisfies performance obligations by transferring the promised goods or services to its
customers.
Revenue from contracts with customers is recognized when control of the goods or services
are transferred to the customer at an amount that reflects the consideration to which the
Company expects to be entitled in exchange for those goods or services. The Company
has generally concluded that it is the principal in its revenue arrangements, because it
typically controls the goods or services before transferring them to the customer, except
for certain re-sale of raw materials and recharges of services to related parties for which
the Company has concluded that it is acting as an agent as described in Note 3.22.5.
Revenue from sale of products, materials and services is described in Note 25.
Disclosures about significant accounting estimates, judgements and assumptions related
to revenue from contracts with customers are provided in Note 3.22.
Sale of finished goods
Revenue from sale of finished goods is recognized at the point in time when control of the
asset is transferred to the customer, generally on delivery of the finished product. The
normal credit term is between 30 to 90 days after delivery.

Monbat AD
Separate financial statements
31 December 2022
13
The Company considers whether there are other promises in the contract that are separate
performance obligations to which a portion of the transaction price needs to be allocated.
In determining the transaction price for the sale of finished goods, the Company considers
the effects of variable consideration, existence of a significant financing component and
consideration payable to the customer (if any).
If the consideration in a contract includes a variable amount, the Company estimates the
amount of consideration to which it will be entitled in exchange for transferring the goods
to the customer. The variable consideration is estimated at contract inception and
constrained until it is highly probable that a significant revenue reversal in the amount of
cumulative revenue recognized will not occur when the associated uncertainty with the
variable consideration is subsequently resolved. Some contracts for the sale of finished
goods provide customers with volume rebates and a right to return the finished goods.
The rights of return and volume rebates give rise to variable consideration.
Volume rebates
The Company provides retrospective volume rebates to certain customers once the
quantity of products purchased during the period exceeds the threshold specified in the
contract. Rebates are offset against the amounts payable by the customer. To estimate
the variable consideration for the expected future rebates, the Company applies the most
likely amount method for contracts with a single volume threshold and the expected value
method for contracts with more than one volume threshold. The selected method that best
predicts the amount of variable consideration is primarily driven by the number of volume
thresholds contained in the contract. The Company then applies the requirements on
constraining estimates of variable consideration and recognizes a refund liability for the
expected future rebates.
Return rights
Some contracts give the customer the right to return the goods within a certain period.
The Company uses the expected value method to approximately determine the goods that
will not be returned, as this method provides the best estimate of the amount of variable
consideration that the Company will be entitled to receive. The requirements of IFRS 15
concerning the limitation of estimates of variable remuneration apply in order to determine
the amount of variable consideration that can be included in the transaction price. For
goods that are expected to be returned, the Company recognizes an obligation to recover
rather than income. A right-to-return asset (and the corresponding adjustment in the cost
of sales) is also recognized with regard to the right to receive back the products from the
customer.
Sale of materials
Revenue from sale of materials is recognized at a certain point in time when control of the
asset is transferred to the customer, which is usually the case for the delivery of the
materials. The normal credit term is 30 to 60 days after delivery.
The Company assesses whether there are other promises in the contract that are separate
performance obligations to which a portion of the transaction price needs to be allocated.
Rendering of services
The services provided by the Company mainly include transportation for the delivery of
goods. The Company recognizes the services as a single performance obligation and
recognizes revenue from them over time as the client simultaneously receives and

Monbat AD
Separate financial statements
31 December 2022
14
consumes the benefits provided by the Company. The Company uses the input method
based on the cost incurred, relative to the total amount of input expected to satisfy the
performance obligation, in order to assess the progress of the satisfaction of the
performance obligation.
Contract balances
Trade receivables
Receivable represents the Company’s right to an amount of consideration that’s
unconditional (i.e., only the passage of time is required before payment of the
consideration due). Please refer to the accounting policies of financial assets set out in
Note 3.13.
Contract assets
A contract asset is the right to consideration in exchange for the goods or services
transferred to the customer. If the Company performs by transferring of the goods or
services to a customer before the client pays the consideration or before payment is due,
a contract asset is recognized for the earned consideration which is conditional.
Contract liabilities
A contract liability is the obligation to transfer goods or services to a customer, for which
the Company has received consideration (or an amount of consideration is due) from the
customer. If a customer pays consideration before the Company transfers goods or
services to the customer, a contract liability is recognized when the payment is made or
the payment is due (whichever is earlier). Contract liabilities are recognized as revenue
when the Company performs under the contract.
Right of return assets
Right-of- return asset represents the Company’s right to recover the goods expected to be
returned by customers. The asset is measured at the former carrying amount of the
inventory, less any expected costs to recover the goods and any potential decreases in
the value of the returned goods. The Company updates the measurement of the asset
recorded to its expected level of returns as well as any additional decreases in the value
of the returned goods.
Refund liabilities
A refund liability is the obligation to refund some or all of the consideration received (or
receivable) from the customer and is measured at the amount the Company ultimately
expects it will have to return to the customer. The Company updates its estimates of
refund liabilities (and the corresponding change in the transaction price) at the end of each
reporting period. Please refer to the variable consideration accounting policy described
above.
Practical expedients
The Company has elected to apply the following practical expedients:
• Not to consider significant financial components where the time difference between
receiving a consideration and transferring control of the products (or services) to a
customer is less than or equal to one year; and

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• Recognition in the statement of profit or loss of additional costs for contracting
when the depreciation period of an asset otherwise recognized would be less than
or equal to one year.
Finance income
Interest income is recognized on an ongoing basis using the effective interest rate method.
Dividend income is recognized when the right to receive payment arises.
3.7. Operating expenses
Operating expenses are recognized in profit or loss upon utilization of the service or at the
date of their origin. Guarantees costs are recognized and charged against the respective
provision when the related revenue is recognized.
3.8. Interest expenses and borrowing costs
Interest expenses are reported on an accrual basis using the effective interest method.
Borrowing costs primarily comprise interest on the Company's borrowings. Borrowing costs
directly attributable to the acquisition, construction or production of a qualifying asset are
capitalized during the period of time that is necessary to complete and prepare the asset
for its intended use or sale. Other borrowing costs are expensed in the period in which
they are incurred and reported in line item 'Finance costs'.
3.9. Intangible assets
Intangible assets include software licenses, trademarks and other intangible assets. They
are accounted for using the cost model. The cost comprises its purchase price, including
any import duties and non-refundable purchase taxes, and any directly attributable
expenditure on preparing the asset for its intended use, whereby capitalized costs are
amortized on a straight-line basis over their estimated useful lives, as these assets are
considered finite. If an intangible asset is acquired in a business combination, the cost of
that intangible asset is based on its fair value at the date of acquisition.
Subsequent measurement is carried at cost less accumulated depreciation and impairment
losses. Allowance for impairment is recorded as an expense and are recognized in the
statement of profit or loss for the period.
Subsequent expenditure on an intangible asset after its purchase or its completion is
expensed as incurred unless it is probable that this expenditure will enable the asset to
generate future economic benefits in excess of its originally assessed standard of
performance and this expenditure can be measured reliably and attributed to the asset. If
these two conditions are met, the subsequent expenditure is added to the carrying amount
of the intangible asset.
Residual values and useful lives of the other intangible assets are defined by the
management at each reporting date.
Amortization is calculated using the straight-line method over the estimated useful life of
individual assets as follows:
• Software 2 years
• Licenses and prototypes Indefinite useful life
• Other 7 years

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Amortization expenses are included in the statement of profit or loss under the line item
“ Depreciation and Amortization expenses ”.
The gain or loss arising on the disposal of an intangible asset is determined as the
difference between the proceeds and the carrying amount of the asset and is included in
the statement of profit or loss under the line “Gain /Loss on the sale of non-curren t assets”.
The recognition threshold adopted by the Company for intangible assets amounts to BGN
700.
3.10. Property, plant and equipment
Items of property, plant and equipment are initially measured at cost, which comprises its
purchase price and any directly attributable costs of bringing the asset to working condition
for its intended use.
Subsequent measurement of property, plant and equipment except assets under
construction are measured at price of acquisition, less accumulated depreciation and
impairment.
Subsequent expenditure relating to an item of property, plant and equipment is added to
the carrying amount of the asset when it is probable that this expenditure will enable the
asset to generate future economic benefits in excess of its originally assessed standard of
performance. All other subsequent expenditure is recognized as incurred.
The residual value estimates and useful life of property, plant and equipment are measured
by management as of each reporting date.
Property, plant and equipment acquired under the finance leases contracts conditions are
depreciated on the basis of the expected useful life, determined by comparison with similar
own assets of the Company, or on the basis of the lease agreement, if its term is shorter.
Depreciation is calculated using the straight-line method over the estimated useful life of
individual assets as follow:
• Buildings 25 years
• Machines 10 years
• Vehicles 7 years
• Fixtures 7 years
• Computers 2 years
• Other 3 years
Depreciation expense has been included in the statement of profit or loss within
'Depreciation and amortization expenses'.
Gains or losses arising on the disposal of property, plant and equipment are determined
as the difference between the disposal proceeds and the carrying amount of the assets
and are recognized in the statement of profit or loss within 'Gain on the sale of non-current
assets'.
The Company has adopted a threshold of BGN 700 for recognition of property, plant and
equipment.
3.11. Accounting for leases
The Company assesses at contract inception whether a contract is, or contains, a lease.
That is, if the contract conveys the right to control the use of an identified asset for a
period of time in exchange for consideration.

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Company as a lessee
The Company applies a single recognition and measurement approach for all lease
contracts, except for short-term leases (i.e., leases with a lease term of up to 12 months)
and leases of low-value assets. The Company recognizes leases liabilities to make lease
payments and right-of-use assets representing the right to use the underlying assets.
Right-of-use assets
The Company recognizes right-of-use assets at the commencement date of the lease (i.e.,
the date the underlying asset is available for use). Right-of-use assets are measured at
cost, less any accumulated depreciation and impairment losses, and adjusted for any
remeasurement of lease liabilities.
The cost of right-of-use assets includes the amount of lease liabilities recognized, initial
direct costs incurred, and lease payments made at or before the commencement date, an
estimate of costs to be incurred by the lessee in dismantling and removing the underlying
asset, restoring the site on which it is located or restoring the underlying asset to the
condition required by the terms and conditions of the lease, less any lease incentives
received. Right-of-use assets are depreciated on a straight-line basis over the shorter of
the lease term and the estimated useful lives of the assets.
If ownership of the leased asset transfers to the Company at the end of the lease term or
the cost reflects the exercise of a purchase option, depreciation is calculated using the
estimated useful life of the asset.
The right-of-use assets are also subject to impairment. Please refer to the accounting
policies in Note 3.12 Financial instruments.
Lease liabilities
At the commencement date of the lease, the Company recognizes lease liabilities contracts
measured at the present value of lease payments to be made over the lease term. The
lease payments include fixed payments (including in- substance fixed payments) less any
lease incentives receivable, variable lease payments that depend on an index or a rate,
and amounts expected to be paid under residual value guarantees. The lease payments
also include the exercise price of a purchase option reasonably certain to be exercised by
the company and payments of penalties for terminating the lease, if the lease term reflects
the Company exercising the option to terminate.
Variable lease payments that do not depend on an index or a rate are recognized as
expenses (unless they are incurred to produce inventories) in the period in which the event
or condition that triggers the payment occurs.
In calculating the present value of lease payments, the Company uses its incremental
borrowing rate at the lease commencement date because the interest rate implicit in the
lease is not readily determinable. After the commencement date, the amount of lease
liabilities is increased to reflect the accretion of interest and reduced for the lease
payments made. In addition, the carrying amount of lease liabilities is remeasured if there
is a modification, a change in the lease term, a change in the lease payments (e.g.,
changes to future payments resulting from a change in an index or rate used to determine
such lease payments) or a change in the assessment of an option to purchase the
underlying asset.

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Short-term leases and leases of low-value assets
The Company applies the short-term lease recognition exemption to its short-term leases
of machinery and equipment (i.e., those leases that have a lease term of 12 months or
less from the commencement date and do not contain a purchase option). It also applies
the lease of low-value assets recognition exemption to rent of office equipment that are
considered to be low value. Lease payments on short-term leases and leases of low- value
assets are recognized as expense on a straight-line basis over the lease term.
Company as a lessor
Leases in which the Company does not transfer substantially all the risks and rewards
incidental to ownership of an asset are classified as operating leases. Rental income arising
is accounted for on a straight-line basis over the lease terms and is included in revenue in
the statement of profit or loss due to its operating nature. Initial direct costs incurred in
negotiating and arranging an operating lease are added to the carrying amount of the
leased asset and recognized over the lease term on the same basis as rental income.
Contingent rents are recognized as revenue in the period in which they are earned.
3.12. Impairment testing of investments in subsidiaries, intangible assets and
property, plant and equipment
For the purpose of assessing impairment, assets are grouped at the lowest levels for which
there are largely independent cash inflows (cash-generating units). As a result, some
assets are tested individually for impairment and some are tested at cash-generating unit
level.
All assets and cash-generating units are tested for impairment at least once annually. All
other individual assets or cash-generating units are tested for impairment whenever
events or changes in circumstances indicate that the carrying amount may not be
recoverable.
An impairment loss is recognized for the amount by which the asset's or cash-generating
unit's carrying amount exceeds its recoverable amount, which is the higher of fair value
less costs to sell and value-in-use. To determine the value-in-use, management estimates
expected future cash flows from each cash-generating unit and determines a suitable
discount rate in order to calculate the present value of those cash flows.
The data used in impairment testing is based on the latest approved budget of the
Company, adjusted as necessary to eliminate the effect of future reorganizations and
significant improvements in assets. Discount factors are determined individually for each
cash-generating unit and reflect their respective risk profiles as assessed by management.
Impairment losses for cash-generating units reduce the carrying amount of the assets
allocated to that cash-generating unit. For all of the Company's assets, management
subsequently assesses whether there is any indication that an impairment loss recognized
in prior years may no longer exist or be reduced. An impairment charge is reversed if the
cash- generating unit’s recoverable amount exceeds its carrying amount.
3.13. Financial instruments
Financial assets and financial liabilities are recognized in the Company’s statement of
financial position when the Company becomes a party to the contractual provisions of the
instrument.

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A financial asset is derecognized when control is lost over contractual rights that compound
the financial asset, i.e., when rights for receiving cash flows are expired or significant part
of risks and rewards from the ownership is transferred.
A financial liability is derecognized upon its settlement, repayment, cancellation of the
transaction or expiration.
Financial assets and financial liabilities are initially measured at fair value. Transaction
costs that are directly attributable to the acquisition or issue of financial assets and
financial liabilities (other than financial assets and financial liabilities at fair value through
profit or loss) are added to or deducted from the fair value of the financial assets or
financial liabilities, as appropriate, on initial recognition.
Transaction costs directly attributable to the acquisition of financial assets or financial
liabilities at fair value through profit or loss are recognized immediately in profit or loss.
All financial assets are recognized on their transaction date.
Modification of contractual cash flows
When the agreed cash flows of a financial instrument are renegotiated or modified and the
renegotiation or modification does not lead to the derecognition of this financial
instrument, the Company recalculates the gross carrying amount of the financial
instrument and recognizes profit or loss on the modification of the profit or loss. The gross
carrying amount of the financial instrument is recalculated as a present value of the
renegotiated or modified contractual cash flows, which are discounted with the initial
effective interest rate of the financial instrument.
Changes in the base on which the agreed contractual cash flows are defined as a result of
a reform in the base interest rate
The base on which the contractual cash flows of a financial asset/liability are defined can
change:
• With a change in the agreed terms defined at the initial recognition of the financial
instrument (for instance the agreed terms change in order to change the
corresponding base interest rate with an alternative base interest rate);
• According to a method that has not been considered initially or has not been
foreseen in the agreed terms at the initial recognition of the financial instrument
without changing the agreed terms (for instance the method for calculating the
base interest rate is changed, without changing the contractual terms); and/or
• Due to the entering into force of an existing contractual term (for instance entering
into force the existing reserve clause).
In these cases of a reform of the base interest rate, the entity does not recognize profit or
loss. Instead, it recalculates the cash flows applying a revised effective interest rate.
The financial assets and financial liabilities are valued as shown below.
3.13.1 Financial assets
All regular way purchases or sales of financial assets are recognized and derecognized on
a trade date basis.
Regular way purchases or sales are purchases or sales of financial assets that require
delivery of assets within the time frame established by regulation or convention in the
marketplace.

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All recognized financial assets are measured subsequently in their entirety at either
amortized cost or fair value, depending on the classification of the financial assets.
Debt instruments that meet the following conditions are measured subsequently at
amortized cost:
• The financial asset is held within a business model whose objective is to hold financial
assets in order to collect contractual cash flows; and
• The contractual terms of the financial asset give rise on specified dates to cash flows
that are solely payments of principal and interest on the principal amount outstanding.
Debt instruments that meet the following conditions are measured subsequently at fair
value through other comprehensive income (FVTOCI):
• The financial asset is held within a business model whose objective is achieved by
both collecting contractual cash flows and selling the financial assets; and
• The contractual terms of the financial asset give rise on specified dates to cash flows
that are solely payments of principal and interest on the principal amount outstanding.
By default, all other financial assets are measured subsequently at fair value through profit
or loss (FVTPL).
Despite the foregoing, the Company may make the following irrevocable election/
designation at initial recognition of a financial asset:
• The Company may irrevocably elect to present subsequent changes in fair value of
an equity investment in other comprehensive income if certain criteria are met; and
• The Company may irrevocably designate a debt investment that meets the
amortized cost or FVTOCI criteria as measured at FVTPL if doing so eliminates or
significantly reduces an accounting mismatch.
The amortized cost of a financial asset is the amount at which the financial asset is
measured at initial recognition minus the principal repayments, plus the cumulative
amortization using the effective interest method of any difference between that initial
amount and the maturity amount, adjusted for any loss allowance. The gross carrying
amount of a financial asset is the amortized cost of a financial asset before adjusting for
any loss allowance.
All income and expenses relating to financial assets are recognized in profit or loss when
acquired regardless how the financial assets’ carrying amount is measured and are
presented within 'Finance costs', 'Finance income' or 'Other financial items', except for
impairment of trade receivables which is presented within 'Other expenses'.
Classification of financial assets
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable
payments that are not quoted in an active market. After initial recognition these are
measured at amortized cost using the effective interest method, less provision for
impairment. The Company’s cash and cash equivalents, trade and most other receivables
fall into this category of financial instruments. Discounting is omitted where the effect of
discounting is immaterial.
The Company recognizes a loss allowance for expected credit losses on investments in
debt instruments that are measured at amortized cost or at FVTOCI, lease receivables,
trade receivables and contract assets, as well as on financial guarantee contracts. The

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amount of expected credit losses is updated at each reporting date to reflect changes in
credit risk since initial recognition of the respective financial instrument.
The Company always recognizes lifetime expected credit loss (ECL) for trade receivables,
contract assets and lease receivables. The expected credit losses on these financial assets
are estimated using a provision matrix based on the Company’s historical credit loss
experience, adjusted for factors that are specific to the debtors, general economic
conditions and an assessment of both the current as well as the forecast direction of
conditions at the reporting date, including time value of money where appropriate. Lifetime
ECL for individually significant receivables is based on factors that are specific for the
debtors.
For all other financial instruments, the Company recognizes lifetime ECL when there has
been a significant increase in credit risk since initial recognition. However, if the credit risk
on the financial instrument has not increased significantly since initial recognition, the
Company measures the loss allowance for that financial instrument at an amount equal to
12-month ECL.
Lifetime ECL represents the expected credit losses that will result from all possible default
events over the expected life of a financial instrument. In contrast, 12-month ECL
represents the portion of lifetime ECL that is expected to result from default events on a
financial instrument that are possible within 12 months after the reporting date.
Impairment losses of trade receivables are presented within 'Other expenses'.
3.13.2 Financial liabilities
The Company's financial liabilities include bank loans and borrowings including bank
overdrafts, trade and other payables and finance lease liabilities and convertible bond
obligations.
Financial liabilities are recognized when the Company becomes a party to the contractual
agreements for payment of cash amounts or another financial asset to another company
or contractual liability for exchange of financial instruments with another company under
unfavorable terms. All interest-related charges and, if applicable, changes in an
instrument's fair value that are reported in profit or loss are included within 'Finance costs'
or 'Finance income'.
Financial liabilities are measured subsequently at amortized cost using the effective
interest method, except for financial liabilities held for trading or designated at fair value
through profit or loss, that are carried subsequently at fair value with gains or losses
recognized in profit or loss.
Bank loans are received to provide long- term funding of the Company’s operations. They
are recognized in the statement of financial position of the Company, net of any costs.
Trade payables are recognized initially at their nominal value and subsequently measured
at amortized cost less settlement payments.
Dividends payable to shareholders are recognized when the dividends are approved at the
general meeting of the shareholders.
Compound Instruments
The Company makes the following accounting policy choices with regards to analysis of
embedded derivative separation requirements:

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a) each embedded derivative is assessed on individual basis
b) the host contract includes these embedded features which do not require separation
The component parts of convertible loan notes issued by the Company are classified
separately as financial liabilities and equity in accordance with the substance of the
contractual arrangements and the definitions of a financial liability and an equity
instrument.
A conversion option that will be settled by the exchange of a fixed amount of cash or
another financial asset for a fixed number of the Company’s own equity instruments is an
equity instrument.
Conversion features that fail equity classification and are accounted for as derivative
liabilities are accounted for separately from the host instruments.
A conversion option that will be settled by the exchange of a fixed amount of cash or
another financial asset for a variable number of the Company’s own equity instruments is
a derivative instrument.
The embedded derivative liability is calculated first and the residual value is assigned to
the debt host liability component. The embedded derivative liability is accounted for at fair
value through profit or loss and is remeasured at each reporting date. Transactions costs
related to the derivative liability component are expensed as incurred. Transaction costs
relating to the liability component are included in the carrying amount of the liability
component and are amortized over the lives of the convertible loan notes using the
effective interest method.
The embedded derivative is presented as a non-current asset liability if the remaining
maturity of the instrument is more than 12 months and it is not expected to be realized
or settled within 12 months.
The debt host liability component is measured at amortized cost after adjusting for
transaction costs attributable to the debt host liability using the effective interest method.
3.13.3 Derivative financial instruments
Derivatives are initially recognized at fair value and subsequently reported at fair value in
the statement of financial position. The changes in the fair value of the derivatives are
recognized in the profit or loss for the period (except for derivatives which are defined and
are effective as hedging instruments).
The Company treats the exercise (or the lack of exercising thereof) of the ‘call’ and ‘put’
derivative options after the balance date as a non-adjusting event and does not consider
it when calculating their fair value as of the balance date.
3.13.4 Contracts for the sale and redemption of securities
Securities can be sold or rented if a commitment is made for their redemption (repo).
Those securities continue to be recognized in the statement of financial position, when all
material risks and benefits, arising from the rights on those shares, remain for the
Company. In such case a liability to the other counterparty is recognized in the statement
of financial position, when the Company receives the remuneration.
Similarly, the Company rents or buys securities by committing to re-sell them back to the
seller (reverse repo) but does not acquire the material risks and benefits of the securities.
The transactions with securities are treated as collateralized loans, when the monetary
remuneration is paid. In this case, the securities are not recognized in the statement of
financial position.

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The difference between the selling and redemption price is recognized as installments for
the whole term of the agreement, by using the effective interest rate method. The
securities, rented to counterparties, are recognized in the statement of financial position.
The borrowed securities are not recognized in the statement of the financial position,
excluding the case in which they are sold to third parties, where the redemption obligation
is recognized as a trade liability at fair value and the subsequent gain or loss is included
in the net operating activities’ result.
3.14. Inventories
Inventories include raw materials, work in progress, production and goods. Cost of
inventories includes all expenses directly attributable to the purchase or manufacturing
process, recycling and other direct expenses connected to their delivery as well as suitable
portions of related production overheads, based on normal operating capacity. Financing
costs are not included in the cost of the inventories. At the end of every accounting period,
inventories are carried at the lower of cost and net realizable value. The amount of
impairment of inventories to their net realizable value is recognized as an expense for the
period of impairment.
Net realizable value is the estimated selling price of the inventories less any applicable
selling expenses and cost of completion. In case inventories have already been impaired
to their net realizable value and in the following period the impairment conditions are no
longer present, then the new net realizable value is adopted. The reversal amount can
only be up to the carrying amount of the inventories prior to their impairment. The reversal
of the impairment is accounted for as decrease in inventory expenses for the period in
which the reversal takes place.
The Company determines the cost of inventories by using weighted average cost.
When inventories are sold, the carrying amount of those inventories is expensed in the
period in which the related revenue is recognized.
3.15. Income taxes
Current income tax
Current income tax assets and liabilities are measured at the amount expected to be
recovered from or paid to the taxation authorities. The tax rates and tax laws used to
compute the amount are those that are enacted or substantively enacted at the reporting
date in the countries where the Group operates and generates taxable income.
Management analyzes the individual items in the tax return for which the applicable tax
provisions are interpreted and recognizes provisions when appropriate.
Current taxes are recognized directly in equity or in other comprehensive income (not in
profit or loss) when the tax relates to items that were recognized directly in equity or in
other comprehensive income.
Deferred tax assets and liabilities
Deferred taxes are recognized using the balance sheet method for all temporary
differences at the reporting date that arise between the tax bases of assets and liabilities
and their carrying amounts.
Deferred tax liabilities are recognized for all taxable temporary differences, except for:

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• When the deferred tax liability arises from the initial recognition of goodwill or an
asset or liability in a transaction that is not a business combination and, at the time
of the transaction, affects neither the accounting profit nor taxable profit or loss;
• In respect to deductible temporary differences associated with investments in
subsidiaries, associates and interests in joint arrangements, deferred tax assets are
recognized only to the extent that it is probable that the temporary differences will
reverse in the foreseeable future and taxable profit will be available against which the
temporary differences can be utilized.
Deferred tax assets are recognized for all deductible temporary differences, the carry
forward of unused tax credits and any unused tax losses. Deferred tax assets are
recognized to the extent that it is probable that taxable profit will be available against
which the deductible temporary differences, and the carry forward of unused tax credits
and unused tax losses can be utilized, except for:
• deductible temporary differences associated with investments in subsidiaries,
associates and interests in joint arrangements, deferred tax assets are recognized only
to the extent that it is probable that the temporary differences will reverse in the
foreseeable future and taxable profit will be available against which the temporary
differences can be utilized.
• In respect of deductible temporary differences associated with investments in
subsidiaries, associates and interests in joint arrangements, deferred tax assets are
recognized only to the extent that it is probable that the temporary differences will
reverse in the foreseeable future and taxable profit will be available against which the
temporary differences can be utilized.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced
to the extent that it is no longer probable that sufficient taxable profit will be available to
allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets
are re-assessed at each reporting date and are recognized to the extent that it has become
probable that future taxable profits will allow the deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply
in the year when the asset is realized or the liability is settled, based on tax rates (and tax
laws) that have been enacted or substantively enacted at the reporting date.
Deferred tax relating to items recognized outside profit or loss is recognized outside profit
or loss. Deferred tax items are recognized in correlation to the underlying transaction
either in OCI or directly in equity.
The Company offsets deferred tax assets and deferred tax liabilities if and only if it has a
legally enforceable right to set off current tax assets and current tax liabilities and the
deferred tax assets and deferred tax liabilities relate to income taxes levied by the same
taxation authority on the same taxable entity.
Value Added Tax (VAT)
Revenues, expenses and assets are recognized net of the amount of value added tax (VAT)
except for:
• Where the VAT incurred on a purchase of assets or services is not recoverable from
the taxation authority, in which case the VAT is recognized as part of the cost of
acquisition of the asset or as part of the expense item as applicable; and
• Receivables and payables that are stated with the amount of VAT included
The net amount of VAT recoverable from, or payable to, the taxation authority is included
as part of receivables or payables in the statement of financial position.

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3.16. Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, current bank accounts and term
deposits up to 3 months.
3.17. Equity, reserves and dividend payments
Share capital represents the nominal value of shares that have been issued. Share
premium includes any premiums received on issue of share capital. Any transaction costs
associated with the issuing of shares are deducted from share premium, net of any related
income tax benefits.
General reserves include legal reserves required by the Bulgarian legislation and other
general reserves from generated profit or loss incurred from prior years.
Retained earnings include financial result and accumulated profit and uncovered losses
from prior years.
Dividend payables to shareholders are included in Other payables when the dividends have
been approved at the general meeting of shareholders prior to the reporting date. All deals
with the owners of the Company are presented separately in the statement of changes in
equity.
3.18. Post-employment and short-term employee benefits
Short-term employee benefits include salaries, interim and annual bonuses, social security
contributions and annual compensated absences for current employees expected to be
settled wholly within twelve months after the end of the reporting period. They are
recognized as an employee benefit expense in the profit or loss or included in the cost of
an asset when service is rendered to the Company and measured at the undiscounted
amount of the expected cost of the benefit. Information on short-term employee benefits
is disclosed in Note 18.
The Company operates a defined benefit plan arising from the requirement of the Bulgarian
labor legislation to pay two or six gross monthly salaries to its employees upon retirement,
depending on the length of their service. If an employee has worked for the Company for
10 years, the retirement benefit amounts to six gross monthly salaries upon retirement,
otherwise, two gross monthly salaries. These retirement benefits are unfunded. The cost
of providing benefits under the retirement benefit plan is determined using the projected
unit credit method. Re-measurements, comprising of actuarial gains and losses, are
recognized immediately in the statement of financial position with a corresponding debit
or credit to retained earnings through other comprehensive income in the period in which
they occur.
Reassessments are not reclassified to profit or loss in subsequent periods
Past service costs are recognized in profit or loss on the earlier of:
- The date of the plan amendment or curtailment, and
- The date that the Company recognized restructuring-related costs
Interest expense is calculated by applying the discount rate to the defined benefit liability.
The Company recognizes the following changes in the defined benefit obligation in profit
or loss for the period:
- Service costs comprising current service costs, past-service costs, gains and losses on
curtailments and non- routine settlements within “Employee benefits expense”.

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- Interest expenses are included under “Finance costs” in the Statement of profit or
loss.
3.19. Provisions, contingent assets and contingent liabilities
Provisions are recognized when present obligations as a result of a past event will probably
lead to an outflow of economic resources from the Company and amounts can be estimated
reliably. Timing or amount of the outflow may still be uncertain. A present obligation arises
from the presence of a legal or constructive commitment that has resulted from past
events, for example, product warranties granted, legal disputes or onerous contracts.
Restructuring provisions are recognized only if a detailed formal plan for the restructuring
has been developed and implemented, or management has at least announced the plan's
main features to those affected by it. Provisions for future operating losses are not
recognized.
Provisions are measured at the estimated expenditure required to settle the present
obligation, based on the most reliable evidence available at the reporting date, including
the risks and uncertainties associated with the present obligation.
Where there are a number of similar obligations, the likelihood that an outflow will be
required in settlement is determined by considering the class of obligations as a whole.
Provisions are discounted to their present values, where the time value of money is
material.
Any reimbursement that the Company can be virtually certain to collect from a third party
with respect to the obligation is recognized as a separate asset. However, this asset may
not exceed the amount of the related provision.
All provisions are reviewed at each reporting date and adjusted to reflect the current best
estimate.
In those cases where the possible outflow of economic resources as a result of present
obligations is considered improbable or remote, no liability is recognized. Contingent
liabilities are subsequently measured at the higher amount of a comparable provision as
described above and the amount initially recognized, less any amortization.
Possible inflows of economic benefits to the Company that do not yet meet the recognition
criteria of an asset are considered contingent assets and are presented in Note 38.
3.20. Government grants
A government grant is a grant provided by the government that is initially recognized as
deferred income (financing) when there is reasonable assurance that it will be received by
the Company and that the latter has complied with the conditions attaching to it.
The government grant that compensates the Company for expenses incurred is recognized
in current profit or loss on a systematic basis in the same period in which the expenses
are recognized.
The government grant that compensates investment expenses incurred to acquire an asset
is recognized in current profit or loss on a systematic basis over the useful life of the asset
usually at the amount of the recognized depreciation expense.

Monbat AD
Separate financial statements
31 December 2022
27
3.21. Non-current assets and liabilities classified as held for sale
When the Company intends to sell a non-current asset or a group of assets (a disposal
group), and if sale within 12 months is highly probable, the asset or disposal group is
classified as ‘held for sale’ and presented separately in the statement of financial
position.
Liabilities are classified as “held for sale” and presented as such in the statement of
financial position if they are directly associated with a disposal group.
Assets classified as “held for sale” are measured at the lower of their carrying amounts
immediately prior to their classification as held for sale and their fair value less costs to
sell. However, some “held for sale” assets such as financial assets or deferred tax assets,
continue to be measured in accordance with the Company’s accounting policy for those
assets.
Once classified as “held for sale”, the assets are not subject to depreciation or
amortization.
3.22. Significant management judgements in applying accounting policies
The following are significant management judgments in applying the accounting policies
of the Company that have the most significant effect on the financial statements. The main
sources of uncertainty in the use of accounting estimates are described in the notes.
3.22.1 Sale and leaseback transactions
The Company has concluded lease agreements related fixed tangible assets sold to leasing
institutions.
In cases where management's assessment is that the criteria in IFRS 15 for revenue
recognition are not met because control over the assets sold has not been transferred, the
leases are classified as short-term or long-term loans and are therefore outside the scope
of IFRS 16 with a repayment schedule that corresponds to the concluded lease agreements
and collateral for the sold & lease backed asset.
3.22.2 Deferred tax assets
The assessment of the probability of future taxable income in which deferred tax assets
can be utilized is based on the Company's latest approved budget forecast, which is
adjusted for significant non-taxable income and expenses and specific limits to the use of
any unused tax loss or credit. If a positive forecast of taxable income indicates the probable
use of a deferred tax asset, especially when it can be utilized without a time limit, that
deferred tax asset is usually recognized in full. The recognition of deferred tax assets that
are subject to certain legal or economic limits or uncertainties is assessed individually by
management based on the specific facts and circumstances.
3.22.3 Determining a method for estimating the variable consideration and
assessing the restriction on the sale of lead-acid batteries on the Bulgarian
market
Revenues from the sale of lead-acid batteries on the Bulgarian market include a variable
consideration component within the scope of IFRS 15, which arises from a regulatory

Monbat AD
Separate financial statements
31 December 2022
28
requirement in relation to an Ordinance to determine the order and amount of payment of
a product fee for products through the use of which mass waste is generated.
In estimating the variable consideration, the Company is required to use either the
expected value method or the most probable amount method. The method used should
better predict the amount of consideration that the Company will be entitled to. The
Company has determined that the most probable amount method is an appropriate
method that can be used to evaluate these transactions.
Before including any amount of variable consideration in the transaction price, the
Company assesses whether the amount of variable consideration is constrained. The
management believes that there is a degree of certainty that the fee due for 2022 will be
remitted by an order of the Minister of Environment and Water in 2023, as the Company
continues to comply with the requirements of the Waste Management Act. In addition, the
uncertainty of variable consideration will be resolved within a short period of time.
According to the Regulation on establishing the terms and conditions for payment of
product fees for products whose use generates mass waste as of 31 December 2022. The
fee was not paid effectively to the Ministry of Environment and Water, as the Company
has met the requirements of the Waste Management Act and has carried out activities for
collection, transportation, temporary storage, pre-treatment, dismantling and disposal of
waste. By order No RD 489 of 10.06.2022 of the Minister of Environment and Water, the
accrued product fee for 2021 has been remitted.
3.22.4 Provision for expected credit losses for trade receivables
The company uses a provisioning matrix to calculate the ECL for trade receivables.
Provisioning percentages are based on overdue days for groups of different customer
segments that have similar loss patterns (e.g., geographical principle, product type,
customer type and rating, and coverage by letters of credit and other forms of credit
insurance).
The provisioning matrix was initially based on the percentages of arrears observed by the
Company historically. The Company refined the matrix to adjust historical experience with
credit losses by including forecast information. For example, if forecasts of economic
conditions (eg gross domestic product) are expected to deteriorate next year, which may
lead to more arrears in the manufacturing sector, historical arrears are adjusted. Historical
percentages of arrears are updated at each reporting date and changes in estimated
estimates are analyzed.
The assessment of the correlation between historical default rates, forecasts of economic
conditions and ECL is a significant estimate. The size of the ECL is sensitive to changes in
circumstances and projected economic conditions. The Company's historical experience in
terms of credit losses and forecasts of economic conditions may also not be representative
of the client's actual arrears in the future. Information on the Company's trade receivables
is disclosed in note 12 and 37.
3.22.5 Principal-agent consideration
The Company enters contracts on behalf of its customers for the acquisition of materials
and raw materials (lead, lead alloys, etc.). Under these contracts Monbat AD provides
delivery services (i.e., coordinates the selection of suitable suppliers and manages the
procurement and delivery of materials). The company has determined that it does not
control the materials before they are transferred to customers and is unable to manage
the use of the materials or to receive the benefits thereof. The factors listed below indicate

Monbat AD
Separate financial statements
31 December 2022
29
that the Company does not control the materials before they are transferred to the
customers. Therefore, it has determined that it acts as an agent in these contracts.
• The Company has no primary responsibility for fulfilling the promise to provide the
materials.
• The company does not bear the risk for inventories before or after they are transferred
to the customer, as it purchases materials only after approval by the customer, and the
supplier ships the materials directly to customers.
• The Company does not exercise discretion in determining the cost of materials. Its
remuneration under these contracts is based solely on the difference between the
maximum purchase price set by the client and the final price agreed between the
Company and the supplier.
In addition, the Company has concluded that it transfers control of the services (i.e., the
organization for the provision of the materials by the foreign provider) at a certain point
in time, upon receipt of the materials by the client, as this is the moment when the client
receives the benefits of the Company's services as an agent.
3.22.6 Leases Contracts under which the Company is a lessee
Determining the lease term of contracts with renewal and termination options
The Company determines the lease term as the non-cancellable term of the lease, together
with any periods covered by an option to extend the lease if it is reasonably certain to be
exercised, or any periods covered by an option to terminate the lease, if it is reasonably
certain it would not to be exercised.
The Company has several lease contracts that include extension and termination options.
The Company applies judgement in evaluating whether it is reasonably certain whether or
not it will exercise the option to renew or terminate the lease. The Company considers all
relevant factors that create an economic incentive for it to exercise either the renewal or
termination. After the commencement date, the Company reassesses the lease term if
there is a significant event or change in circumstances that is within its control and affects
its ability to exercise or not to exercise the option to renew or to terminate (e.g.,
construction of significant leasehold improvements or significant customization to the
leased asset).
Estimating the incremental borrowing rate
The Company cannot readily determine the interest rate implicit in the lease, therefore, it
uses its incremental borrowing rate (IBR) to measure lease liabilities. The IBR is the rate
of interest that the Company would have to pay to borrow over a similar term, and with a
similar security, the funds necessary to obtain an asset of a similar value to the right-of-
use asset in a similar economic environment.
The IBR therefore reflects what the Company ‘would have to pay’, which requires
estimation when no observable rates are available or when they need to be adjusted to
reflect the terms and conditions of the lease. The Company estimates the IBR using
observable inputs (such as market interest rates) when available and is required to make
certain entity- specific estimates (such as the subsidiary’s stand -alone credit rating).

Monbat AD
Separate financial statements
31 December 2022
30
3.23. Estimation uncertainty
In preparing the financial statements, management makes a number of assumptions,
estimates and judgements about the recognition and measurement of assets, liabilities,
income and expenses.
Actual results may differ from management's assumptions, estimates, and judgements
and, in rare cases, are consistent with previously estimated results.
Information about the significant assumptions, estimates and assumptions that have the
most significant impact on the recognition and measurement of assets, liabilities, income
and expenses is presented below.
3.23.1 Impairment of non-current non-financial assets
An impairment loss is the amount by which the carrying amount of an asset or cash-
generating unit exceeds its recoverable amount, which is the higher of its fair value less
selling cost and its value in use. To determine the value in use, the Company's
management calculates the expected future cash flows for each cash-generating unit and
determines the appropriate discount factor in order to calculate the present value of these
cash flows (see Note 3.12). In calculating expected future cash flows, management makes
assumptions about future gross profits. These assumptions are related to future events
and circumstances. Actual results may vary and require significant adjustments to the
Company's assets in the next reporting year. In most cases, the determination of the
applicable discount factor assesses the appropriate adjustments in relation to market risk
and risk factors that are specific to individual assets.
As of December 31, 2022, the management has assessed the indication for impairment of
its net investment in Monbat Holding Germany. In view of the business development plans
of Monbat Holding Germany (a company holding 100% of the capital of EAS), the
management of the Company believes that there is no need for impairment of the provided
loans, accrued interest receivables on & carrying amount of the investments in Monbat
Holding Germany (see Note 7)
As of December 31, 2022, in line with IAS 36, the Company's management has performed
an impairment review of its net investments in Monbat Immobilien GmbH, in accordance
with IAS 36 “Impairment of assets” (Note 7). The carrying amount of the asset exceeds
its recoverable amount calculated using the fair value model based an agreement signed
with a third party. Therefore, the Company has estimated impairment expenses for a long-
term non-financial asset at the amount of TBGN 3 106 (2021: TBGN 19 484) included in
the “ Impairment of non- financial assets” line in the separate statement for profit or loss
(see Note 7).
3.23.2 Useful lives of depreciable assets
Management reviews the useful lives of depreciable assets at each reporting date.
As of 31 December 2022, the management assessed that the useful lives represent the
expected utilization of the assets by the Company. The carrying amounts are analyzed in
notes 4, 5 and 8. Actual results, however, may vary due to technical obsolescence,
particularly relating to software and IT equipment.

Monbat AD
Separate financial statements
31 December 2022
31
3.23.3 Inventories
Inventories are measured at the lower of cost and net realizable value. In estimating net
realizable values, management takes into account the most reliable evidence available at
the time the estimates are made. The Company's core business is affected by changes in
technology which may cause selling prices to change rapidly. Moreover, future realization
of the carrying amounts of inventory amounting to TBGN 36 043 (2021: TBGN 32 808) is
affected by the fluctuations of the prices of lead and lead component markets (Note 10).
3.23.4 Fair value of financial instruments
Management uses valuation techniques in measuring the fair value of financial instruments
where active market quotations are not available. In applying the valuation techniques
management makes maximum use of market inputs, and uses estimates and assumptions
that are, as far as possible, consistent with observable data that market participants would
use in pricing the instrument. Where applicable data is not observable, management uses
its best estimate about the assumptions that market participants would make. These
estimates may vary from the actual prices that would be achieved in an arm's length
transaction at the reporting date.
3.23.5 Provisions
Provisions for warranties represent amounts, which the Company expects to incur as an
expense for servicing and repair of defects of the basic products in subsequent periods.
The amount recognized as a warranty provided to customers for the cost of repairs is
estimated based on management's past experience and the future expectations of defects.
3.23.6 Employee retirement benefits
Retirement benefit is determined by actuarial valuation and assumptions are made about
the discount rate, future wage increases, staff turnover and mortality rates. Due to the
long-term nature of staff income at retirement, these assumptions are subject to
significant uncertainty. As of December 31, 2022, the management has reviewed the
Company's retirement benefit liability and has assessed the effect as immaterial.
3.23.7 Estimating variable consideration for returns and volume rebates
The Company estimates variable considerations to be included in the transaction price for
the sale of electronic equipment with rights of return and volume rebates. During the
period, the Company has recognized as a decrease in revenue from production due to
volume rebates for customer contracts with the calendar year ending on December 31,
2022 and 2021, which represent a significant part of the customer portfolio.
The volume rebates expected by the Company are analyzed on a customer basis for
contracts that are subject to a single volume threshold. Determining whether a customer
is likely to receive a rebate depends on the customer's historical rebate rights and the
accumulated purchases so far.
The Company applied the statistical model for estimating expected volume rebates for
contracts with more than one volume threshold. The model uses the historical purchasing
patterns and rebates entitlement of customers to determine the expected rebate

Monbat AD
Separate financial statements
31 December 2022
32
percentages and the expected value of the variable consideration. For contracts concluded
for a non-calendar year, which represent a small portion of the client's portfolio, the
Company recognized a decrease in revenue from the sale of products and trade
receivables.
The Company has developed a statistical model for forecasting sales returns. The model
uses the historical return data of each product to come up with expected return
percentages. These percentages are applied to determine the expected value of the
variable consideration. Any significant changes in experience as compared to historical
return pattern will impact the expected return percentages estimated by the Company.
Estimates of returned goods and volume rebates are sensitive to changes in circumstances
and the Company's experience with these elements may not be representative of actual
goods and rebates returned by customers. As of December 31, 2022, the Company has
assessed the amount of reimbursement obligations for expected returned goods as
immaterial (2021 - immaterial).
3.23.8 Measurement of expected credit losses
Credit losses are defined as the difference between all the contractual cash flows that are
due to the Company and the cash flows that it actually expected to be received.
Measurement of the expected credit losses is determined by a probability-weighted
estimate of credit losses that require the Company’s judgment. The Company's
management has analyzed the expected effect of the coronavirus pandemic, and the
military conflict in Ukraine and Russia, both on economic growth and on the credit quality
of its counterparties. The analysis performed by the management of the Company is
mainly focused on assessments and assumptions for potential deterioration of the credit
quality of counterparties and the potential effect on the expected credit losses from
exposures to counterparties.
The management of the Company considers that in the short term no significant
deterioration of the credit risk of the counterparties is expected, mainly due to expected
quick recovery of the economies and the expected stimulus from the EU countries.
Nevertheless, the Company observes worsening in the debt collection from clients in
Russia and Ukraine. The scope of the Company is limited to the extent that the estimation
of the expected credit losses in this case is hampered by the inability to obtain sufficient
reliable information about certain counterparties in these geographic regions.

Monbat AD
Separate financial statements
31 December 2022
33
4. Intangible assets
The Company's intangible assets comprise software licenses, trademarks and other
intangible assets. The carrying amounts for the reporting periods under review can be
analyzed as follows:
As of 31 st December 2022 Software Trademarks Advances
for
licensing
rights
Others Total
BGN ‘000 BGN ‘000 BGN ‘000 BGN ‘000 BGN ‘000
Gross carrying amount
Balance as of 1 st January 2022 556 713 4 415 710 6 394
Newly acquired assets, purchased 222 - 1 399 1 062 2 683
Disposals (72) - - (44) (116)
Balance as of 31 st December 2022 706 713 5 814 1 728 8 961
Amortization
Balance as of 1 st January 2022 (304) (547) - (103) (954)
Amortization (153) (36) - (19) (208)
Balance as of 31 st December 2022 (457) (583) - (122) (1 162)
Balance as of 31st December
2022 249 130 5 814 1 606 7 799
As of 31 st December 2021 Software Trademarks Advances
for
licensing
rights
Others Total
BGN ‘000 BGN ‘000 BGN ‘000
BGN
‘ 000
BGN
‘000
Gross carrying amount
Balance as of 1st January 2021 307 585 3 995 614 5 501
Newly acquired assets, purchased 249 128 420 96 893
Balance as of 31 st December 2021 556 713 4 415 710 6 394
Amortization
Balance as of 1 st January 2021 (303) (529) - (85) (917)
Amortization (1) (18) - (18) (37)
Balance as of 31 st December 2021 (304) (547) - (103) (954)
Balance as of 31st December
2021 252 166 4 415 607 5 440
License rights
In 2019, the Company signed a contract for the purchase of licensing rights for the
acquisition of technology for the production of accumulators with bipolar plates. The
contract foresees the payment of an initial installment for the acquisition of license rights
at the amount of TUSD 2 000 as well as 8 more installments on a quarterly basis at the
amount of TUSD 250 each. The reported amount paid for the acquired licensing rights as
of 31.12.2022 amounts to TBGN 5 814 or TUSD 3 250 (2021: TBGN 4 415 or TUSD 2 550).

Monbat AD
Separate financial statements
31 December 2022
34
Due to the circumstances surrounding the Covid-19 pandemic, part of the quarterly due
installments was for 2021 not paid.
In 2021, one installment was made at the amount of TBGN 420 (TUSD 250) dating
December 2021.
In 2022, three installments were made at the amount of TBGN 1 399 (TUSD 750) dating
April, October and November 2022.
The remaining amount related to the full acquisition of license rights is TUSD 750 (or 3
quarterly installments of TUSD 250 each). The Company intends to pay all installments
stipulated in the contract and it has the required technical, financial and other resources
on its disposal to fulfill its obligations on time.
In 2022, the Company signed an agreement with the same supplier for the production of
bipolar plate battery prototypes to be made available to customers during the
commercialization of the new production. As of December 31, 2022, advances amounting
to TBGN 887 (TUSD 459) have been paid under this contract. The production of the
prototypes is expected to be completed in 2023.
In accordance with IAS 36, since the licensing rights have an indefinite useful life, following
the tests for impairment as of 31.12.2022, no impairment has been recognized. A model
based on the business plan has been developed, which foresees the establishment of a
manufactory for the production of accumulators utilizing a bipolar technology and the
corresponding capital expenses and cash outflows related to them. Additionally, this model
foresees the realization (sale) of the produced accumulators and the corresponding in and
out cash flows. A discounted factor of 12% was used. The developed model includes all
expected contract costs for maintaining the license after its commercialization.
The Company already has specific and very positive results from testing its prototypes
which are part of the pre-commercial production. These tests provide the Company with
the assurance, that soon it will be able to start its preparation for mass production. The
licensing rights will grant the opportunity to produce different types of conventional
batteries, especially batteries with an improved energy density and power per unit weight,
prolonged useful life and lower production cost.
There is not a foreseeable period limit during which it is expected for the asset to generate
net cash flows for the asset. The licensing rights are granted based on an agreed contract
with an unlimited period. Based on this analysis of the corresponding factors, the Company
considers the licensing rights as having unlimited useful life.
All depreciation expenses are included in the separate financial statement for profit and
loss under article “Depreciation and amortization expenses”. The Company has not
pledged any of its intangible assets as a collateral for its liabilities.

Monbat AD
Separate financial statements
31 December 2022
35
5. Property, plant & equipment
Company's property, plant and equipment comprise land, buildings, machines and equipment, other equipment, vehicles, fixtures and
acquisition expenses. The carrying amount can be analyzed as follows:
Land Buildings Machines
&
equipment
Other
equipment
Vehicles Fixtures Assets under
construction
Total
BGN ‘000 BGN ‘000 BGN ‘000 BGN ‘000
BGN
‘000
BGN
‘000 BGN ‘000 BGN ‘000
Gross carrying
amount
Balance 1 st
January 2022 7 304 27 231 92 008 6 351 3 157 3 064 1 709 140 824
Newly acquired
assets - 79 604 18 156 77 3 140 4 074
Transfer of
assets - 150 1 188 88 26 - (1 452) -
Disposals (42) - - - - (1) (398) (441)
Balance 31 st
December 2022 7 262 27 460 93 800 6 457 3 339 3 140 2 999 144 457
Depreciation
Balance 1 st
January 2022 - (9 736) (72 497) (2 405) (2 837) (2 739) - (90 214)
Depreciation - (1 041) (4 099) (256) (123) (105) - (5 624)
Balance 31 st
December 2022 - (10 777) (76 596) (2 661) (2 960) (2 844) - (95 838)
Carrying
amount 31st
December 2022 7 262 16 683 17 204 3 796 379 296 2 999 48 619

Monbat AD
Separate financial statements
31 December 2022
36
Land Buildings Machines
&
equipment
Other
equipment
Vehicles Fixtures Assets under
construction
Total
BGN ‘000 BGN ‘000 BGN ‘000 BGN ‘000
BGN
‘000
BGN
‘000 BGN ‘000
BGN
‘000
Gross carrying
amount
Balance 1 st January
2021 7 267 26 144 86 479 6 255 3 245 2 955 5 865 138 210
Newly acquired
assets 37 234 544 64 273 93 2 107 3 352
Transfer of assets - 853 4 985 32 - 16 (5 886) -
Disposals - - - - (361) - (377) (738)
Balance 31 st
December 2021 7 304 27 231 92 008 6 351 3 157 3 064 1 709 140 824
Depreciation
Balance 1 st January
2021 - (8 712) (67 895) (2 154) (2 998) (2 639) - (84 398)
Depreciation - (1 024) (4 602) (251) (127) (100) - (6 104)
Depreciation
Written-off - - - - 288 - - 288
Balance 31 st
December 2021 - (9 736) (72 497) (2 405) (2 837) (2 739) - (90 214)
Carrying amount
31st December
2021 7 304 17 495 19 511 3 946 320 325 1 709 50 610

Monbat AD
Separate financial statements
31 December 2022
37
As of 31 st December 2022 & 2021, the Company does not have any material contractual
commitments related to acquisition of items of property, plant and equipment.
Based on the performed review for impairment of the Property, plant & equipment, the
Management has not identified indicators that the book value of the assets exceeds their
recoverable amount.
The material part of the expenses for the acquisition of intangible assets of the Company
includes expenses, related to the ongoing reconstruction and modernization of the newly
built plant in Montana.
As of 31 st December 2022, the expenses for the acquisition of non-current assets are at
the amount of TBGN 2 999 (2021: TBGN 1 709) and are distributed as follows:
• Strip line for production of wide rolling strip – TBGN 654 (2021: none)
• Construction of factory for casting lead strips – TBGN 422 (2021: none)
• SAP S4/HANA battery division – TBGN 419 (2021: none)
• Gas line for alternative fuels – TBGN 257 (2021: none)
• Reconstruction of laboratory – TBGN 99 (2021: none)
• Assembly line for labeling and foiling in the Finished Goods Warehouse – TBGN 76
(2021: TBGN 76)
• MES - TBGN 54 (2021: TBGN 494)
• Moulds for battery boxes – TBGN 17 (2021: TBGN 17)
• Main factory renovations – none (2021: TBGN 243)
• Other reconstructions TBGN 1 001 (2021: TBGN 879)
The carrying amount of the Company’s property, plant and equipment pledged as security
for its borrowings (see Note 19), is presented as follows:
Land Buildings Machines
and
equipment
Assets under
construction
Total
BGN
‘000
BGN
‘000 BGN ‘000 BGN ‘000
BGN
‘000
Carrying amount on
31 December 2022 3 268 3 147 7 562 654 14 631
Carrying amount on
31 December 2021 3 268 3 492 9 583 - 16 343
Geographical information
All property, plant & equipment of the Company are located in Bulgaria.

Monbat AD
Separate financial statements
31 December 2022
38
6. Investments in subsidiaries and associates
Monbat AD has the following investments in subsidiaries and associates:
Country of
incorporation
Main activities 2022 Share 2021 Share
BGN
‘000 %
BGN
‘000 %
Name of the subsidiary
Monbat Recycling EAD Bulgaria Lead Recycling 50 829 100 50 829 100
Monbat Holding GmbH Germany Batteries - 90 25 572 90
Societe Nouvelle de
l'accumulateur Nour Tunisia
Production of
batteries and lead
recycling 21 280 60 - -
Monbat Immobilien GmbH
(net of impairment) Austria
Property
management - 94 14 708 94
Start AD Bulgaria
Production of
batteries 4 887 97.80 4 887 97.80
STC Srl. Italy R&D 3 083 66.66 3 083 66.66
Monbat OOD Romania Romania Trade of batteries 194 99 194 99
Monbat NBP EAD Bulgaria
Production of
batteries 50 100 50 100
Monbat Sped EOOD Bulgaria
Transportation of
batteries 50 100 50 100
Monbat Holding Tunis
The
Netherlands
Holding Company
- - 39 100
ART Monbat AD Bulgaria Batteries 26 51 26 51
Monbat New Power AD Bulgaria
Production of
batteries 25 51 25 51
Energy Battery Nigeria Nigeria Trade of batteries - 100 - 100
Monbat Batterien GmbH Austria Trade - 100 - 100
Monbat SA Proprietary Ltd South Africa Trade of batteries 146 100 - -
80 570 99 463
Name of the associated
entity
Leventa OOD Bulgaria Services 2 481 46 2 481 46
Societe Nouvelle de
l'accumulateur Nour Tunis
Production of
batteries and lead
recycling - - 8 019 23.3
Total investments in
subsidiaries and
associates 83 051 109 963
The investments in subsidiaries and associates are represented in the separate financial
statement of financial position of the Company, using the cost method, net of impairment.
The subsidiaries and associates are not listed on a stock exchange since their fair value
cannot be estimated. In 2022 the Company has not received dividend from its investments
in subsidiaries and associates. The contingent liabilities or other liabilities related to
investments in subsidiaries and associates are reported under note 38.
At 31 December 2022 the investments of the Company in its subsidiary companies Monbat
Holding GmbH and Monbat Immobilien GmbH are presented as non-current assets held
for sale (Note 7)

Monbat AD
Separate financial statements
31 December 2022
39
6.1. Societe Nouvelle de l'accumulateur Nour
In January 2022 the Company acquired additional 20.39% of the Tunisian company for
production of accumulator batteries Societe Nouvelle de l'accumulateur Nour for the
amount of TBGN 6 845 (TEUR 3 500). In March 2022 the Company acquired additional
16.32% for the amount of TBGN 5 868 (TEUR 3 000). As a result the shareholding of the
company has increased to 60%. The cost of the investment at 31 December 2022 is TBGN
20 732 (TEUR 10 600). In May 2022, after a decision of the shareholders for a capital
increase in Societe Nouvelle de l'accumulateur Nour, the Company increased its
shareholding by TBGN 548.
6.2. Monbat SA Proprietary Limited
In 2022, the Company acquired 51% of the capital of Monbat SA Proprietary Limited, by
signing a Share Purchase Agreement entered into with Monbat Holding Tunis. The
transaction was included an amount of TBGN 146. The cash obligation under the
transaction was settled through full set-off of the Company's loan and interest receivables
from Monbat Holding Tunisia. As a result of the transaction, the Company's investment in
Monbat SA Proprietary Limited is presented as an investment in a subsidiary.
6.3. Monbat Holding Tunis
As of August 2022, Monbat Holding Tunisia has been deregistered as a company in the
Commercial Register of the Netherlands. The Company has recorded a loss of TBGN 39 in
the Individual statement of profit or loss, shown on line "Other expenses", as a result of
this deregistration.
7. Assets held for sale
At 31 December 2022 the non-current assets held for sale include investments of the
Company in the subsidiary companies Monbat Holding GmbH and Monbat Immobilien
GmbH
2022
BGN ‘000
Investment in Monbat Holding GmbH, Germany (Note 7.1) 27 265
Investment in Monbat Immobilien GmbH, Austria (Note 7.2) 11 602
Assets held for sale 38 867
7.1. Monbat Holding GmbH, Germany
In May 2022 the Company entered into an agreement to sell 100% of its investment in
the subsidiary company Monbat Holding GmbH. This company owns 100% of EAS Batteries
GmbH (EAS) and Monbat New Power GmbH (MNP). The agreement was concluded with
the British company Britishvolt. The transaction value for the shares of Monbat Holding
GmBH is EUR 36 million, including a cash payment as well as the issue of ordinary shares
of the capital of Britishvolt. As at 31 December 2022, the transaction has not been
completed and there has been no change in the intention of the Company's management
to complete the sale. Pursuant to the sale agreement entered into with Britishvolt, the
Company has received an upfront payment of TEUR 3 000 in the form of a non-refundable
deposit (TEUR 2 825 net of legal and advisory fees).

Monbat AD
Separate financial statements
31 December 2022
40
In 2022, following a resolution of the shareholders, the capital of Monbat Holding GmbH
was increased by the amount of TBGN 1 882. As a result, the Company's investment
increased by TBGN 1 693.
As at 31 December 2022, the Company's management has reviewed its net investment in
Monbat Holding GmbH for impairment, taking into account the events described in note
42. Based on the sale agreement entered into, which has not been terminated by either
party as of December 31, 2022, and pursuant to which the sale price exceeds the
Company's investment in Monbat Holding GmbH, the management of the Company
considers that there is no need to record an impairment charge.
7.2. Monbat Immobilien GmbH, Austria
In April 2022 the General Meeting of Shareholders resolved on the sale of Monbat
Immobilien GmbH subject to an appropriate price offer from a potential buyer. In 2022
the Company entered into an agreement for the sale of the Austrian company's assets,
with a total transaction value of TEUR 7 200. As at 31 December 2022, the transaction
has not been completed and there has been no change in the Company's intention to
complete a sale of its investment in Monbat Immobilien GmbH.
At 31 December 2022. Monbat AD has performed impairment tests in accordance with the
requirements of IAS 36 "Impairment of Assets" for its investment in Monbat Immobilien
GmbH. Impairment indicators have been identified due to the specific nature of the
underlying asset held by the subsidiary, an investment property in Austria. Management
concluded that the carrying amount of the assets exceeded their recoverable amount as
determined by the terms of a signed sale agreement with an unrelated party. Therefore,
the Company recorded an impairment charge of TBGN 3 106 thousand in 2022 (2021:
TBGN 19 484) included in 'Impairment of non-financial assets' in the individual statement
of profit or loss. In addition, the Company has recorded impairment charges on receivables
of TBGN 318 (2021: TBGN 99) included in "Impairment of financial assets" in the individual
statement of profit or loss.
8. Lease liabilities and right-of-use assets
The Company has lease contracts as a lessee for office spaces, machinery and equipment,
vehicles and other equipment used in its operations. Rents of office spaces and motor
vehicles generally have lease term between 3 and 5 years, while machinery and other
equipment generally have lease terms up to 1 and 3 years.
The Company also has certain lease contracts of machinery with terms of 12 months or
less and rent of office equipment with low value. The Company applies the ‘short -term
lease’ and ‘lease of low - value assets’ recognition expedients for these leases.
Set out below are the carrying amounts of right-of-use assets recognized and the
movements during the period:

Monbat AD
Separate financial statements
31 December 2022
41
Right-of- use assets (BGN ‘000)
Buildings Motor
vehicles
Machinery
and
equipment
Total
As at 1 January 2022 279 844 - 1 123
Additions 1 779 169 136 2 084
Depreciation expense (515) (306) (28) (849)
As at 31 December 2022 1 543 707 108 2 358
Right-of- use assets (BGN ‘000)
Buildings Motor
vehicles
Machinery
and
equipment
Total
As at 1 January 2021 758 433 - 1 191
Additions - 520 - 520
Depreciation expense (479) (109) - (588)
As at 31 December 2021 279 844 - 1 123
Set out below are the carrying amounts of lease liabilities and the movements during the
period:
2022 2021
Lease liabilities BGN ‘000 BGN ‘000
Long-term liabilities 1 524 385
Short-term liabilities 854 636
2 378 1 021
Lease
liabilities
2022
BGN '000
Lease
liabilities
2021
BGN '000
As at 1 January 1 021 1 122
Additions 2 166 520
Accrued interest expenses 92 36
Payments (901) (657)
As at 31 December 2 378 1 021
The Company does not have leases that include variable payments.

Monbat AD
Separate financial statements
31 December 2022
42
Future minimum lease payments as at 31 December 2022 are as follows:
Minimum lease payments
Up to 1
Year
1-2
Year
2-3
Year
3-4
Year
4-5
Year
After 5
Years
Total
BGN
‘000
BGN
‘000
BGN
‘000
BGN
‘000
BGN
‘000
BGN
‘000
BGN
‘000
31 December 2022
Lease payments 923 846 690 42 - - 2 501
Finance costs (69) (39) (14) (1) - - (123)
Net value 854 807 676 41 - - 2 378
31 December 2021
Lease payments 596 302 91 34 34 - 1 057
Finance costs (23) (9) (4) - - - (36)
Net value 573 292 87 34 34 - 1 021
The Company has several leases, which include termination options. The purpose of the
management is to ensure flexibility in the lease portfolio by using termination options in
the contracts. Management exercises substantial discretion in determining whether it is
reasonably certain that these extension and termination options will be exercised. The
Company considers that in the following reporting periods the options for terminating the
contracts will not be exercised.
The following are the amounts recognized in profit or loss:
2022
BGN ‘000
Depreciation expense of right-of-use assets 849
Interest expense on lease liabilities (note 32) 92
Total amount recognized in profit or loss 941
The Company’s total cash outflows related to leases amounts are TBGN 901 in 2022 (2021:
TBGN 657).
9. Income tax
The main components of income tax expense for the years ended 31 December 2022
and 2021 are:
2022 2021
BGN ‘000 BGN ‘ 000
Current income tax expense (669) (1 592)
Deferred tax income 506 2 313
Income tax gain (expense) recognized in profit or loss (163) 721
The applicable income tax rate for 2022 is 10% (2021: 10%). In 2022, the applicable tax
rate remains unchanged.
The reconciliation between income tax expense and accounting profit multiplied by the
applicable tax rate for the years ended 31 December 2022 and 31 December 2021 is set
out below:

Monbat AD
Separate financial statements
31 December 2022
43
2022 2021
BGN ‘000 BGN ‘000
Profit before tax 1 382 475
Tax rate 10% 10%
Expected tax expense (138) (48)
Adjustments for tax-exempt income (531) (1 544)
Recognition of deferred taxes 506 2 313
Current income tax (loss)/ gain (163) 721
Current income tax includes
Current tax expenses: (669) (1 592)
Deferred tax expenses:
Effect of temporary differences 506 2 313
Current income tax (loss)/ gain (163) 721
Effective tax rate 12% (152)%
The deferred tax balances as of 31.12.2022 and 31.12.2021 are related to the following:
Statement of financial
position
Statement of profit
or loss
2022 2021 2022 2021
BGN ‘000 BGN
‘000
BGN
‘000
BGN
‘000
Deferred tax liabilities
Subsequent valuation of assets and
liabilities (1 335) (1 445) 90 189
Deferred tax assets
Government grants 23 38 (15) (67)
Annual paid leave liability 30 2 28 33
Impairment of receivables 824 651 173 128
Warranty provisions 49 130 (81) 82
Impairment of investments 2 343 2 032 311 1 948
Deferred tax income 506 2 313
Deferred tax assets/liabilities, net 1 914 1408
Calculation of deferred tax liabilities:
2022 2021
BGN ‘000 BGN ‘000
1 st of January 1 408 (905)
Deferred taxes recognized in profit or loss for the period 506 2 313
As at 31 st December 1 914 1408
The company has not recognized tax losses that can be carried forward and deducted from
future taxable profits.

Monbat AD
Separate financial statements
31 December 2022
44
10. Inventories
Inventories recognized in the statement of financial position can be analyzed as follows:
2022 2021
BGN
‘000
BGN ‘000
Materials 12 775 14 403
Production 14 020 10 593
Work in progress 9 130 7 339
Goods 118 473
36 043 32 808
No decrease in the expenses as a result of reimbursement of impairments which have
been recognized in previous periods occurred in 2022 or 2021.
A pledge has been founded on a combination of raw materials and inventories – lead, lead
composites and accumulator batteries and similar products, owned by Monbat AD, pledged
as collateral for the liabilities under working capital overdraft from 07.12.2004 with
Eurobank EFG Bulgaria AD (see note 19). The carrying amount of the inventories, pledged
as a collateral for borrowings (see note 19), amounts to TBGN 20 868 as at 31.12.2022
(31.12.2021 – TBGN 16 654).
11. Short-term financial assets
In the reporting periods under review, short-term financial assets include equity
investments and loans
2022 2021
BGN
‘000
BGN
‘000
Shares 50 1 521
Trade loan granted to Advanced Research and technologies 99 97
Trade loan granted to Grafon, incl. interest, net of impairment - 279
149 1 897
Contract from 29.04.2021 with Advanced Research and Technologies
Utilized principal: TBGN 92
Contract duration: four months
Interests & commissions: fixed annual interest rate
Balance of the principal as of 31.12.2022: TBGN 92.
Redemption: Single payment at the maturity date of the contract.
Contract from 25.01.2019 with Grafon
Utilized principal: TBGN 650
Contract duration: one year
Interest: Fixed annual interest rate:
Balance of the principle as of 31.12.2022 - TBGN 0, net of impairment
Redemption: Single payment at the maturity date of the contract.

Monbat AD
Separate financial statements
31 December 2022
45
During 2022 the book value of the loan granted and interest accrued to Grafon net of
impairment, amounting to TBGN 270 was set-off against trade payables to the same
counterparty.
12. Trade receivables
2022 2021
BGN ‘000 BGN ‘000
Trade receivables, gross 48 214 53 423
Impairment of receivables (3 489) (3 078)
44 725 50 345
All trade receivables are short term. The net carrying value of trade receivables is
considered a reasonable approximation of their fair value.
During 2022, trade receivables amounting to TBGN 52 (2021: TBGN 21) were written-off.
The Company has used the simplified approach allowed by IFRS 9 (note 3.13) to measure
the expected credit loss with respect to trade receivables whose credit risk has not
increased significantly. The result of the assessment is an impairment at the amount of
TBGN 411 in 2022 (2021: TBGN 567 ), that has been recognized within “Impairment of
receivables” in the Statement of profit or loss.
The movement in the allowance for credit losses can be reconciled as follows:
2022 2021
BGN ‘000 BGN ‘000
Balance on 1 January (3 078) (2 511)
Impairment of receivables (411) (567)
Balance on 31 December (3 489) (3 078)
The carrying amount of trade receivables pledged as collateral for loans (see Note 19)
amounts to TBGN 24 178 as of 31 December 2022 (2021: TBGN 27 390).
13. Tax receivables
2022 2021
BGN ‘000 BGN ‘000
VAT receivables 4 319 3 282
Personal Income Tax 117 74
Customs duties 35 19
Withholding tax 1 1
4 472 3 376

Monbat AD
Separate financial statements
31 December 2022
46
14. Other receivables
2022 2021
BGN ‘000 BGN ‘000
Guarantees 1 572 1 335
Prepayments 389 379
Advances to employees 10 10
Other 240 387
2 211 2 111
As of 31.12.2022, there was not any impairment to Other receivables (2021: TBGN 0).
15. Cash and cash equivalents
Cash and cash equivalents include the following components
2022 2021
BGN ‘000 BGN ‘000
Cash at bank and in hand
- EUR 1 703 3 490
- BGN 464 722
- USD 358 22
- GBP 2 3
2 527 4 237
The Company has assessed the expected credit losses on cash and cash equivalents. The
estimated value of the expected credit losses of the gross value of the cash deposited with
financial institutions is determined as immaterial and is not recorded in the financial
statements of the Company.
As at 31 December 2022, the Company has blocked cash totaling TBGN 1 298 (31.12.2021
– TBGN 1 234). The blocked funds include TBGN 200 in cash under the Waste Management
Act (31 December 2021 – TBGN 200) and a counter-guarantee towards customers worth
TBGN 1 098 (31.12.2021 – TBGN 1 034).
16. Equity
16.1 Issued capital
The issued capital of the Company consists only of 39 000 000 fully paid ordinary shares
with a nominal value of BGN 1. All shares are equally eligible to receive dividends and the
repayment of capital and represent one vote at the General assembly of the shareholders
of the Company.

Monbat AD
Separate financial statements
31 December 2022
47
2022 2021
Number of
shares
Number of
shares
Number of shares issued and fully paid:
At the beginning of the year 39 000 000 39 000 000
Reacquired own shares (27 000) -
Total number of shares authorized as at 31
December
38 973 000 39 000 000
Company’s shareholders are as follows:
31
December
31
December
31
December
31
December
2022 2022 2021 2021
Number of
shares
% Number of
shares
%
Prista Oil Holding EAD 16 666 371 42.73 16 666 371 42.73
PRISTA HOLDCO
COOPERATIEF U.A 8 103 758 20.78 8 103 758 20.78
Monbat Trading OOD 2 752 800 7.06 2 752 800 7.06
UPF Doverie 2 582 864 6.62 2 582 864 6.62
ZUPF Allianz Bulgaria 2 105 403 5.40 2 105 403 5.40
Other individuals and legal
entities 6 788 804 17.41 6 788 804 17.41
39 000 000 100 39 000 000 100
Repurchased own shares (27 000) (0.07)
38 973 000 99.93 39 000 000 100
The total number of the shares and votes held directly and through related parties by
Prista Oil Holding EAD is 19 419 171 shares or 49,8%. There is a pledge established under
the Financial Collateral Agreements Act in favor of UniCredit Bulbank AD on the shares
owned by Monbat Trading OOD and Prista Oil Holding EAD. The pledge has been
constituted in relation to a loan granted by UniCredit Bulbank AD to Prista Invest 2016 AD.
The Board of Directors of MONBAT AD adopted a decision for a new buy-back procedure
of company’s own shares up to 3 % of the company’s registered capital or up to 1 170
000 shares. The minimum price for the buy-back is BGN 4.51 and the maximum price for
the buy-back is BGN 8.75 with initial term for the buy-back of 26.09.2022. In the event
of completion of the shares, namely – the company buys back up to 1 170 000 shares,
prior to the final term – 180 calendar days starting 26.09.2022, the current buy-back
procedure shall be terminated as successfully implemented. In the event that, within the
term under the first sentence the maximum number of shares has not been bought back,
the Board of Directors, in its own judgment, may either extend the term with another 180
calendar days under respective application of the provision of the preceding sentence, or
terminate the procedure notwithstanding the number of the bought back shares. Within
the term of the current procedure, depending on the market conditions, the Board of
Directors, in its own judgment, may change the minimum and maximum price for the buy-
back

Monbat AD
Separate financial statements
31 December 2022
48
16.2 Share premium
Share premium of the Company consists of proceeds, received in addition to nominal value
of the shares issued in 2006. The proceeds are included in share premium, less any
registration and other regulatory fees.
The excess over the nominal value of BGN 1, for each redeemed share and the fees for
the investment intermediary, increase the share premium value to TBGN 28 498 at
31.12.2022 and TBGN 28 611 at 31.12.2021.
16.3 General reserves
Legal
reserves
Other
reserves
Total
reserves
BGN ‘000 BGN ‘000 BGN
‘000
Balance on 1 January 2021 3 900 59 966 63 866
Balance on 31 December 2021 3 900 59 966 63 866
Balance on 31 December 2022 3 900 59 966 63 866
Legal reserves
Legal reserves represent 10% from the current earnings as required by the Commercial
law until it reaches 10% of the share capital.
Other reserves
Other reserves at 31.12.2022 amount to TBGN 59 966 and are formed by the retained
earnings of the Company in 2006, 2008, 2009, 2010, 2012, 2013 and other changes.
17. Warranty provisions
The carrying amount of the provisions can be summarized as follows:
Warranty
Provisions
BGN ‘000
Carrying amount on 1 January 2022 1 297
Accrued provision 4
Integrated provision (815)
Carrying amount on 31 December 2022 486
2022 2021
BGN ‘000 BGN ‘000
Non-current
Carrying amount 185 300
2022 2021
BGN ‘000 BGN ‘000
Current
Carrying amount 301 997

Monbat AD
Separate financial statements
31 December 2022
49
Warranty provisions represent amounts, which are expected by the Company to be
incurred for warranty service and replacement of the main products in the next years.
Recognized provision is calculated on the best estimate basis, which the Company’s
management can make based on previous experience and anticipated product sales.
18. Employees’ remuneration
18.1 Payroll expenses
2022 2021
BGN ‘000 BGN ‘000
Salary expenses 14 548 14 912
Social security expenses 2 683 2 868
Payroll expenses 17 231 17 780
18.2 Personnel payables
Personnel payables recognized in the statement of financial position consist of the
following:
2022 2021
BGN ‘000 BGN ‘000
Salaries payables 1 129 1 160
Social security payables 354 365
Annual paid leave liability 298 714
Payables to personnel and social security
institutions 1 781 2 239
19. Borrowings
Borrowings include the following financial liabilities:
Current Non-current
2022 2021 2022 2021
BGN ‘000 BGN ‘000 BGN ‘000 BGN ‘000
Financial liabilities
measured at amortized
cost
Bank loans 70 200 67 858 11 733 11 735
Loans from other financial
institutions 936 731 881 1 470
Total carrying amount 71 136 68 589 12 614 13 205

Monbat AD
Separate financial statements
31 December 2022
50
19.1 Summary of bank loan contracts
1. KBC bank EAD
Contract dated 25.02.2014
Maturity date: 15.02.2016
Loan amount: EUR 3 200 000
Type of credit: Revolving loan
Interest: 1-month EURIBOR + mark-up
Collateral: Rank collateral of mortgage of own real estate, cadaster No 48489.5.597,
cadaster No 48489.5.281, cadaster No 48489.5.396, together with buildings on it, on the
territory of Montana str. Industrialna.
With annex N 4/ 30.06.2016 the amount of the loan was increased to EUR 4 200 000
With annex m.06.2016 the amount of the loan was increased to EUR 9 200 000:
Maturity date: 15.11.2023
Pledge on fixed assets owned by Monbat AD and Monbat Recycling Bulgaria.
First rank pledge agreement on Monbat’s receivables on bank accounts held with the bank.
Utilized amount as of 31.12.2022 at the amount of BGN 11 206 694 or EUR 5 729 891 –
entirely short-term.
2. Eurobank Bulgaria AD
Contract No 339/07.12.2004
Maturity date: 01.09.2006
Loan amount: EUR 2 200 000
Type of credit: Credit line
Interest: Variable reference interest rate + mark-up
Collateral: Pledge on assets and inventories owned by Monbat AD
With annex from 16.06.2017 the amount of the loan was increased to BGN 18 971 401
Maturity date: 01.10.2023
Utilized amount as of 31.12.2022 at the amount of BGN 18 970 948 – entirely short-term.
3. Eurobank Bulgaria AD
Contract No 100 -972 / 23.11.2010
Maturity date: 23.11.2011
Amount borrowed: EUR 1 000 000
Type of credit: Working capital
Interest: 3-month EURIBOR + mark-up
Collateral:
Real estate 1: ½ ideal part of land with identification N48489.282 on the cadastral map of
Montana, buildings and factories, warehouse currently owned by Monbat AD, approved
with Directive No RD -18-19-/05.04.2006 of the Procurator of AK.
Real estate 2: ½ ideal part of land with identification N48489.282 on the cadastral map of
Montana, buildings and factories, warehouse currently owned by Monbat AD, approved
with Directive No RD -18-19-/05.04.2006 of the Procurator of AK.
Pledges:
Pledge 1: Machines, installations and vehicles, located in the factory of Monbat AD in
Montana, 72 “Industrial” str.
Pledge 2: Vehicle weighing machine and security room with an area of 102 sq.m.,
according to documentary evidence and inventory number 300000003
Pledge 3: Unloading area, with an area of 1980 sq.m., according to documentary evidence
and property inventory number 3000000004.
A special pledge entered in the Central Register of Special Pledges- fixed assets, machinery
and equipment, movables.
There is annex from 29.07.2014 and the loan is transferred from EUR in BGN.
Maturity date: 30.09.2023
Amount borrowed: BGN 1 955 830
Type of credit: Credit line

Monbat AD
Separate financial statements
31 December 2022
51
Interest: Variable reference interest rate + mark-up
Collateral: Promissory Note for the amount of BGN 1 955 830
Utilized amount as of 31.12.2022 at the amount of BGN 1 914 246 – entirely short-term.
4. DSK Bank EAD
Contract No 1675/16.09.2015
Maturity date: 10.09.2023
Loan amount: EUR 2 500 000
Type of credit: For working capital
Interest: 1 M EURIBOR + mark-up
Collateral: Pledge agreement on receivables and property, plant and equipment
Utilized amount as of 31.12.2022 at the amount of EUR 850 000 or BGN 1 662 455 –
entirely short-term.
5. DSK Bank EAD
Contract No 1674/16.09.2015
Maturity date: 10.09.2016
Loan amount: BGN 2 000 000
Type of credit: For working capital
Interest: Variable reference interest rate + mark-up – solely short-term.
With annex from 13.11.2019 a loan amount of up to BGN 9 000 000 is increased.
Maturity date: 10.09.2023
First rank pledge on the fixed assets of Monbat AD
Next in line special pledge on receivables.
Utilized amount as of 31.12.2022 at the amount of BGN 8 999 883 – entirely short-term.
6. KBC bank EAD
Contract dated 09.11.2015
Maturity date: 15.12.2023
Loan amount: BGN 490 000
Type of credit: Overdraft
Interest: Variable reference interest rate + mark-up
Collateral: No collateral
Utilized amount as of 31.12.2022 at the amount of BGN 470 321 – entirely short-term.
7. Eurobank Bulgaria AD
Contract 359/2017 dated 05.10.2017
Loan amount: EUR 2 556 459
Type of credit: Credit line
Interest: 3 M EURIBOR + mark-up
Maturity date: 31.12.2022
Collateral: First pledge agreement for Monbat’s receivables from the third parties.
Utilized amount as of 31.12.2022 at the amount of BGN 3 504 102 or EUR 1 791 619 –
entirely short-term.
8. UBB AD
Contract 20F-00428 dated 10.04.2020
Maturity date: 31.12.2022
Loan amount: EUR 2 000 000
Type of credit: Credit line
Interest: 1 M EURIBOR + mark-up
Collateral: Pledge on receivables on all borrower's accounts opened in the bank; insurance
with BAEZ, covering the exposure under the contract up to EUR 2 million.
With an annex of 15.12.2020, the amount of the loan is divided into two sub-limits of 1
million euro with the right to draw down the first sub-limit until 31.12.2022 and final

Monbat AD
Separate financial statements
31 December 2022
52
repayment until 31.12.2022 and with the right to draw down the second sub-limit in case
of successful review, which the bank will carry out until 30.12.2022.
With an annex of 15.11.2022 the maturity date is extended to 31.01.2024
Utilized amount as of 31.12.2022 at the amount of BGN 3 910 003 or EUR 1 999 153 –
entirely long-term.
9. UBB AD
Contract dated 10.04.2020
Maturity date: 30.09.2026
Loan amount: EUR 13 000 000
Type of credit: Credit line
Interest: 6 M EURIBOR + mark-up
Collateral:
Another mortgage of land with an area of 38 665 m2, owned by Start AD and Monbat
Recycling EAD, together with the buildings and improvements built on it and the future
buildings planned for construction.
Another mortgage on land with an area of 11 343 m2, owned by Start AD and Monbat
Recycling EAD
Another mortgage of a building with an area of 3 510 m2, owned Monbat Recycling EAD
warehouse.
Special pledge on machinery, equipment and equipment, means of transport, business
inventory owned by Start AD
First special pledge of items and inventories, with a carrying amount of EUR 4 million,
owned by Start AD
Special pledge on receivables on all accounts of the borrower, opened with the bank..
With an annex of 15.12.2020 the amount of the loan was changed to EUR 10 000 000 and
the loan is divided into two sub-limits of TEUR 5 833 and TEUR 4 167 respectively with the
right to draw down the first sub-limit by 30.12.2020 and repayment of EUR 1 million on a
6-month basis starting on 30 January 2021 and with the right to draw down the second
sub-limit in case of successful review, which the Bank will carry out by 31.12.2022. In
case of successful review, the maturity date is 30.07.2025.
Utilized amount as of 31.12.2022 at the amount of BGN 11 734 980 or EUR 6 000 000 of
which BGN 3 911 660 (EUR 2 000 000) is short-term.
10. Investbank AD
Contract dated 21.07.2021
Maturity date: 26.03.2023
Loan amount: EUR 5 000 000
Type of credit: Credit line
Interest: 3 M EURIBOR + mark-up
Collateral:
First rank contractual mortgage of a property with an area of 39 998 sq. m., owned by
Monbat AD, for the purpose of building a bipolar battery manufactory.
First rank pledge on 50 829 042 shares in line with the Commercial Law with voting rights
with a nominal price of BGN 1, owned by Monbat AD as shares in Monbat Recycling EAD.
First rank pledge on current and future receivables available in all open accounts held by
Monbat AD.
With an annex dated 14.07.2022, the loan amount is increased to EUR 8 315 000.
Utilized amount as of 31.12.2022 at the amount of BGN 9 779 150 (EUR 5 000 000) -
entirely short-term.

Monbat AD
Separate financial statements
31 December 2022
53
11. Investbank AD
Contract dated 25.02.2022
Maturity date: 26.03.2023
Loan amount: EUR 5 000 000
Type of credit: Credit line
Interest: 3 M EURIBOR + mark-up
Collateral:
First-order contractual mortgage on land with an area of 782 m2, owned by Monbat
Recycling EAD. First-order pledge established on current and future receivables for the
balances in all accounts in Investbank opened by Monbat AD, Monbat Recycling EAD and
Prista Oil Holding EAD Financial risk insurance policy issued by BAEZ in favor of the bank,
with a credit limit of not less than EUR 4 000 000.
Utilized amount as of 31.12.2022 at the amount of BGN 9 779 150 (EUR 5 000 000) -
entirely short-term.
12.Bank credit card accounts with credit limits BGN 50 000 and utilized amounts as of
31.12.2022 at the amount of TBGN 1.
According to the agreements concluded with DSK Bank EAD under contract No1674 /
16.09.2015 and KBC Bulgaria EAD under contract of 25.02.2014, Monbat AD should
maintain a covenant in connection with the consolidated net debt ratio of the Monbat Group
to EBITDA, which ratio should be lower than 3. The preliminary unaudited consolidated
financial statements of the Group show that the Company is in violation of this covenant.
The loan is short-term and this does not affect the classification in the separate financial
statements. Based on historical experience and in view of the long-term business relations
with the banks, the Company does not believe that such non-compliance would lead to
significant consequences.
19.2 Summary of loan contracts from other financial institutions:
13. UBB Interlease EAD
Contract dated 18.10.2019
Maturity Date: 19.11.2024
Amount of Credit: EUR 1 271 250
Type of credit: credit line
Interest: Fixed interest
Collateral: assembly line for lead-acid accumulators and lead-acid furnace
Utilized amount to 31.12.2022 in the amount of EUR 466 094 or BGN 911 600, including
short-term part of BGN 497 000
14. UBB Interlease EAD
Contract dated 29.11.2019
Maturity Date: 29.12.2024
Amount of credit: EUR 219 999
Type of credit: credit line
Interest: Fixed interest
Collateral: Rectifier Systems Type CDR400/420V-8CH -4 pcs. and rectifier Systems Type
CDR400/360V-10CH -5 pcs.
Utilized amount to 31.12.2022 in the amount of EUR 87 836 or BGN 171 792 from which
BGN 86 000 is short-term.
15. UBB Interlease EAD
Contract dated 26.11.2021
Maturity Date: 26.11.2025
Amount of credit: EUR 420 366
Type of credit: credit line

Monbat AD
Separate financial statements
31 December 2022
54
Interest: Fixed interest
Collateral: 13 machines
Utilized amount to 31.12.2022 in the amount of EUR 248 575 or BGN 486 170 of which
BGN 155 000 is short-term.
16. UBB Interlease EAD
Contract dated 27.09.2022
Maturity Date: 31.10.2024
Amount of credit: EUR 114 735
Type of credit: credit line for fixed assets
Interest: 3M EURIBOR + mark-up
Collateral: Computer equipment
Utilized amount to 31.12.2022 in the amount of EUR 72 167 or BGN 141 146 of which BGN
91 548 is short-term.
17. UBB Interlease EAD
Contract dated 11.11.2022
Maturity Date: 30.04.2027
Amount of credit: EUR 1 094 544
Type of credit: credit line for fixed assets
Interest: 3M EURIBOR + mark-up
Collateral: Machines and equipment
Utilized amount to 31.12.2022 in the amount of EUR 54 677 or BGN 106 939 – entirely
short-term.
20. Government grants
In 2012, Under Operational Program “Development of the competitiveness of the Bulgarian
economy 2007 –2013”, Monbat AD received a grant in the sum of TBGN 4 227 under the
procedure “Technology upgrade in large enterprises”. The purpose of the grant is to invest
in new equipment for production of grating and plates for dry-charged and lead-acid
batteries. In 2013, Monbat AD won a project under Procedure BG161PO003-1.1.07
“Implementation of innovations in enterprises”, OP “Development of the competitiveness
of the Bulg arian economy” worth TBGN 4 112. The value of the grant under the project
procedure is TBGN 2 053 and was received in 2015. The project is for the production of
two types of batteries with AGM technology - stationary batteries (telecommunication) and
car batteries with AGM technology.
The short-term and long-term part of the financing can be presented in the following way:
2022 2021
BGN ‘000 BGN ‘000 BGN ‘000 BGN ‘000
Current Non-
Current
Current Non-
Current
Government grants received for
non-current assets 204 295 188 465
204 295 188 465

Monbat AD
Separate financial statements
31 December 2022
55
2022 2021
BGN ‘000 BGN ‘000
On 1 st January 653 1 321
Recognized in the separate statement of profit or loss (Note 26) (154) (668)
On 31 st December 499 653
As of the date of approval of the report, there are no unfulfilled conditions related to these
grants.
21. Convertible bonds and fair value of conversion option
The Company issued first order corporate convertible bonds with ISIN BG2100023170,
issued under the conditions of initial public offering as follows: Number of bonds: 28 015
(twenty-eight thousand and fifteen) with denomination EUR 1 000 (one thousand) each.
The issue Date: 20.01.2018; Maturity Date: 20.01.2025
Type of bonds: convertible, ordinary, registered, dematerialized, interest-bearing, freely
transferable, unsecured. Term to maturity: 84 (eighty-four) months.
Interest rate: floating rate of 6M EURIBOR plus premium of 300 basis points, but not less
than 3.00 % on an annual basis.
Interest payment date: 20 January and 20 July of each year until the Maturity Date. If the
Interest Payment Date is not a Business Day, the Interest Payment Date shall be
postponed to the next Business Day.
Repayment: in three installments at the end of the 5th, the 6th, and the 7th year of the
life of the bond; at 20%, 30% and 50% of the nominal value, respectively, which
corresponds to the following Interest Payment Dates: 20/01/2023, 20/01/2024 and
20/01/2025. In the event of conversion, the principal repayments will be calculated on the
basis of the current bond issue's nominal value at the date of the respective principal
payment. In this case, the last principal installment at the end of the 7th year will be
equalized and will repay the entire outstanding nominal value of the issue, if such
outstanding nominal value exists.
Conversion option: Each bondholder may request the conversion of the bonds they hold
according to their current nominal amount at the Conversion Price on the 48th, 66th and
78th month after issuance, corresponding to the following Interest Payment Dates,
respectively: 20/01/2022, 20/07/2023 and 20/07/2024.
Conversion price: equal to 90% of the weighted average price of a MONBAT AD`s share
on the BSE for the six months preceding the respective conversion date if the conversion
option is exercised.
Minimum conversion threshold: 5% of the outstanding nominal amount of all Bonds on
each of the respective conversion dates.
Call option: The Company may redeem the residual outstanding part of the Bond issue on
the 60th month after issuance at 101% of the current outstanding principal amount. The
date of the Call option corresponds with the interest and principal payment on the 60th
month or 20.01.2023 with the call option taking into account the corresponding 20%
principal instalment. The Company has not exercised the right to redeem the residual
outstanding part of the Bond issue on the 60th month after issuance.

Monbat AD
Separate financial statements
31 December 2022
56
The convertible bond liabilities can be presented in the following way
2022 2021
BGN ‘000 BGN ‘000
Non-
current
Non-
current
Carrying amount of amortized bond liability 42 265 51 458
Fair value of conversion option 5 280 5 867
47 545 57 325
2022 2021
BGN ‘000 BGN ‘000
Current Current
Carrying amount of amortized bond liability 10 959 -
10 959 -
The initial fair value of the conversion option of the convertible bond is assessed through
the valuation model that presumes that the price of a share of the Company follows
Brown’s motion. The valuation model uses an iterative Monte Carlo simulation using a
large number of sample results to approximate the aim solution. The fair value of the
convertible option falls within level 3 of the hierarchy of the fair value.
Further evaluations of the convertible option will be performed using the same model. In
2022, the Company has reported an income from the change in the fair value at the
amount of TBGN 578. The amount is included under art. “Financial instruments income”
in the Statement of profit or loss (2021: TBGN 578).
The fair values of the conversion options in the 48 th , 66 th & 78 th months after the bond
issuance have been assessed. The conversion option has not been exercised on month 48.
The fair value of the conversion option is subtracted from face value of the bond obligation
and the residual value is assigned to the debt host liability component which is measured
at amortized cost using the effective interest method.
For the remaining embedded features (e.g., call option (with regards to prepayment) and
floor option (with regards to minimal level of interest rate), the Company concluded they
are closely related to host contract. The difference in the amortized cost of debt host
contract including cash flows resulting from executing the call option (at each date for
which it is applicable) was assumed as insignificant compared to amortized cost of debt
host contract before relevant call option execution. Floor options were assessed as not
being in-the-money at initial recognition date, i.e., options strike price (6M EURIBOR plus
300 b.p.) was assessed as being lower than interest rate level required for comparable
plain vanilla debt.
Transaction costs related to the conversion option derivative liability component to the
amount of TBGN 47 have been expensed as part of “Interest Expenses” in 2018.
Transaction costs to the amount of TBGN 353 related to the liability component of the
Bond are included in the carrying amount of the liability component and are amortized
over the life of the convertible bond note using the effective interest method.
The calculated and applied effective interest rate on the bond liability component carried
at amortized costs is equal to app. 6% per annum.

Monbat AD
Separate financial statements
31 December 2022
57
The initial time horizon for calculation of the effective interest rate was 5 years from the
bond obligation issue since the Management expected that the call option at year 5 of the
bond obligation will be exercised.
On the basis of the prepared business plan, change in the cash flows related to the
convertible bond and the respective recalculation of the carrying amount of the convertible
bond as of 31.12.2021, the Company recognizes a one-off profit at the amount of TBGN
1 737 which is presented under art. “Financial instruments i ncome” in the Statement of
profit or loss.
In 2022, as a result of a change in market conditions - an increase in the 6M EURIBOR
interest rate, the Company has recalculated the amortised cost of the bond debt. The
revised effective interest rate starting from 2022 is approximately 8% per annum. The
recalculation of the debt at the revised effective interest rate does not require the
recognition of a one-off effect in the Profit or loss statement in 2022.
The applicable accounting policy is reported under note 3.13. Note 34 provides information
concerning the financial period in which the Company has generated income related to the
convertible bond & convertible option.
22. Trade payables
2022 2021
BGN ‘000 BGN ‘000
Payables to suppliers 11 282 14 151
23. Tax liabilities
2022 2021
BGN ‘000 BGN ‘000
Tax on expenses 29 51
Withholding tax 22 10
Other taxes 22 65
73 126
24. Contract liabilities and other liabilities
24.1 Contract liabilities
2022 2021
BGN '000 BGN ‘000
Advances received 3 729 1 619
Contract liabilities 3 729 1 619

Monbat AD
Separate financial statements
31 December 2022
58
24.2 Other liabilities
2022 2021
BGN ‘000 BGN ‘000
Advances received for the sale of subsidiary 5 866 -
Interest payables on convertible bond 859 739
Dividends payables to shareholders 35 42
Other short-term liabilities 16 101
Other liabilities 6 776 882
"Advances received, related to the sale of subsidiary" includes TBGN 5 866 received in the
form of a non-refundable deposit in connection with an agreement to sell 100% of the
Company's investment in Monbat Holding GmbH. The agreement has been entered into
with Britishvolt and is for a total consideration of TEUR 36 000, comprising cash as well as
the issue of ordinary shares in the capital of Britishvolt. As at 31 December 2022, the
transaction has not been completed and there has been no change in the intention of the
Company's management to complete the sale. For these reasons, the Company does not
consider it reasonable to recognize revenue related to the non-refundable advances
received. See note 7.1.
24.3 Fair value of hedging instruments
2022 2021
BGN ‘000 BGN ‘000
Fair value of lead LME swap 364 -
Other liabilities 364 -
In 2022 the Company has used LME lead cash flow swap transactions, negotiating a fixed
reference price to limit the risk of a decline in the London Metal Exchange lead index,
which would impact the selling price of the Company's production. The open transactions
as at 31 December 2022 have been measured at fair value and, as a result, the Company
is reporting a liability under a derivative instrument.
25. Revenue from contracts with customers
2022 2021
BGN ‘000 BGN ‘000
Type of revenue
Revenue from sale of finished goods 235 499 269 473
Revenue from sale of goods 85 409 77 192
Revenue from sale of materials 3 108 2 683
Revenue from rendering of services 2 988 1 527
Other revenue 3 135
Total revenue from contracts with customers 327 007 351 010
In 2022, the sale of materials to related parties amounting to TBGN 50 339 (2021: TBGN
43 471) and reinvoiced services amounting to TBGN 188 (2021 – TBGN 265) were reported
net of the carrying amount of materials sold and reported materials costs and reinvoiced
expenses and the realized profit of the transactions to the amount of TBGN 46 (2021 –
TBGN 114) is included in line “Revenue from rendering of services”. See note 3.6.

Monbat AD
Separate financial statements
31 December 2022
59
2022 2021
BGN ‘000 BGN ‘000
Geographic markets
Bulgaria 46 092 51 454
Germany 30 477 32 513
Other countries 250 438 267 043
Total revenue from contracts with customers 327 007 351 010
2022 2021
BGN ‘000 BGN ‘000
A point in time for revenue recognition
Finished goods and materials transferred
at a certain point in time 324 016 349 348
Services transferred over time 2 988 1 527
Other income transferred at a certain point in time 3 135
Total revenue from contracts with customers 327 007 351 010
The Board of Directors of Monbat AD is the chief operational decision maker. The chief
operational decision maker determines the operating segments based on the production
activity of the Company. The Board of Directors monitors the performance of its business
units separately for the purposes of decision-making regarding the allocation of resources
and evaluation of performance. The information on revenues by segments of districts can
be analyzed for the presented reporting periods as follows:
2022 Starter
and
stationary
batteries
Technological
waste and
semi-finished
goods
Materials Services Other Total
2022
BGN ‘000 BGN ‘000 BGN ‘000 BGN
‘000
BGN
‘000
BGN
‘000
Segment
revenue: 296 972 23 936 3 108 2 988 3 327 007
2021 Starter
and
stationary
batteries
Technological
waste and
semi-finished
goods
Materials Services Other Total
2021
BGN ‘000 BGN ‘000 BGN ‘000 BGN
‘000
BGN
‘000
BGN
‘000
Segment
revenue: 314 851 31 814 2 683 1 527 135 351 010
In 2022 and 2021 the Company did not have any major customers that would account for
10% or more of the total revenue.

Monbat AD
Separate financial statements
31 December 2022
60
Contract balances
2022 2021
BGN ‘000 BGN ‘000
Trade receivables (refer to note 12) 44 725 50 345
Trade receivables from related parties (refer to note
37)
93 384 88 746
Contract liabilities (refer to note 24.1) (3 729) (1 619)
Trade receivables are noninterest-bearing and are usually settled between 0 and 90 days.
Contract liabilities represent short-term advance payments received for providing finished
goods.
In 2022 the Company recognized revenues from contracts with customers, which were
included in the contract liabilities at the beginning of the period, amounting to TBGN 1 578
(2021 – TBGN 477).
In 2022 and 2021 the Company has not reported revenue from contracts with customers
recognized during the reporting periods from performance obligations that have been
satisfied (or partially satisfied) in previous periods (for example, changes in the transaction
price).
Performance obligations
The information about the Company’s performance obligations is summarized below:
Battery production
The Company manufactures and sells a wide range of starter and stationary batteries on
the market. Revenue from sales of finished goods is recognized when control of the
products has been transferred and there is no unsatisfied obligation that could affect the
customer's acceptance of the products. The performance obligation is satisfied upon
delivery of the finished good, when the products are shipped to the specific place, the risks
are transferred to the customers who have accepted the products in accordance with the
sales contract, acceptance provisions have expired, or the company has objective evidence
that all criteria for acceptance are met.
Sales are made with a payment term of 0 to 90 days, which is in line with market practice,
and do not lead to the recognition of a significant financing component.
Some contracts provide the customers with a right to return and volume rebates, which
gives rise to variable remuneration subject to restriction. The Company's obligation to
repair or replace defective products under standard warranty conditions is recognized as
a provision under IAS 37 (see Note 17).
Production of by-products and semi-finished products
The performance obligation is satisfied upon delivery of the products. Sales are made with
a payment term of 30 days, and do not lead to the recognition of a significant financing
component.

Monbat AD
Separate financial statements
31 December 2022
61
Materials and others
The performance obligation is satisfied upon delivery of materials. Sales are made with a
payment period of 30 to 60 days, and do not lead to the recognition of a significant
financing component.
Services
The performance obligation is satisfied over time, the payment is usually due upon
completion of the service and its acceptance by the client. Some contracts require short-
term advances before a service can be provided.
26. Other operating income
2022 2021
BGN ‘000 BGN ‘000
Revenue from financing under program for compensating
commercial end clients of electricity
7 869 782
Revenue from financing in connection to investment
programs (Note 20)
154 668
Receivables written-off - 1
Others 71 99
8 094 1 550
The main part of the other operating income of the Company are beyond the scope of IFRS
15 and are recognized according to other standards.
“Revenue from financing under program for compensating commercial end clients of
electricity” at the amount of TBGN 7 869 in 2022 and TBGN 782 in 2021 is related to
governmental grant under Council of Ministers’ Decree (CMD) No 739, amended with
Decree No771 on 06.11.2021. The aim of the program is to alleviate commercial clients’
electricity burdens & support them with overcoming the consequences of the substantial
& unfavorable volatilities in the prices of electricity.
27. Cost of materials
2022 2021
BGN ‘000 BGN ‘000
Raw materials (180 957) (202 242)
Electricity (16 601) (9 359)
Fuels and lubricants (4 712) (2 025)
Spare parts and accessories (1 529) (1 757)
Packaging and other materials (307) (289)
Other costs (859) (842)
(204 965) (216 514)

Monbat AD
Separate financial statements
31 December 2022
62
28. Cost of materials and cost of goods sold and other current assets
2022 2021
BGN ‘000 BGN ‘000
Goods from Start AD 76 376 69 317
Materials 1 323 541
Other goods 171 7
77 870 69 865
29. Hired Services expenses
2022 2021
BGN ‘000 BGN ‘000
Distribution expenses (16 991) (15 504)
Other consulting services (1 080) (1 085)
Repair & maintenance expenses (708) (874)
Insurances (656) (826)
Subscription fees (telephone, internet & others) (514) (475)
Fees on civil contracts (364) (408)
Governmental fees, customs duties & others (474) (385)
Advertising expenses (439) (265)
Rent expenses (145) (178)
Audit expenses (197) (160)
Other expenses (1 272) (2 410)
(22 840) (22 570)
In other expenses, the costs of toll, box & lids manufacturing, delivery services, other
services (incl. security), expenses for reinvoicing and others are included.
The remuneration of the independent auditors for 2022 amount to TBGN 197. During the
year, there were not any tax consultation services or other services unrelated to the audit.
These financial statements are prepared in line with the requirements under art. 30 of the
Accountancy Act.
30. Gain on the sale of non-current assets
2022 2021
BGN ‘000 BGN ‘000
Sales revenue 51 97
Carrying amount of the non-current assets sold (42) (73)
Gain on the sale of non-current assets 9 24

Monbat AD
Separate financial statements
31 December 2022
63
31. Other expenses
2022 2021
BGN ‘000 BGN ‘000
Business trips (319) (189)
Representation expenses (284) (219)
Inventory written-off (275) (575)
Receivables written-off (130) (89)
Donations (20) (33)
Provisions for warranty service (4) (814)
Others (965) (1 019)
(1 997) (2 938)
Other costs include VAT for personal use, social costs, penalty costs, sampling costs & etc.
32. Finance income and finance cost
Finance costs for the presented reporting periods can be analyzed as follows:
2022 2021
BGN ‘000 BGN ‘000
Costs for borrowings at amortized cost:
Bank loans at amortized cost: (2 129) (1 640)
Loans from other financial institutions (62) (40)
Bond (3 529) (3 080)
Total interest expenses for financial liabilities not at
fair value through profit or loss (5 720) (4 760)
Interest expense on lease liabilities (note 8) (92) (36)
Other finance costs (792) (1 078)
Finance costs (6 604) (5 874)
Finance income may be analyzed as follows for the presented reporting periods:
2022 2021
BGN ‘000 BGN ‘000
Interest income on financial assets carried at amortized
cost 1 572 1 572
Total interest income for financial assets not at fair
value through profit or loss 1 572 1 572
Other financial instruments – derivatives 516 -
Finance income 2 088 1 572
The proportional coupon payments calculated at the coupon rate of the obligation for bonds
for 2022 amounted to TBGN 1 763 (2021: TBGN 1 643). The total interest expense on the
obligation is TBGN 3 529 (2021: TBGN 3 080). The difference between coupon payments
and calculated interest expense is due to the effective interest rate due to the expected
fair value of the Conversion option (note 21).
Other financial instruments – derivatives represent the net effect of commodity swap
transactions entered into in 2022 to hedge the downside risk in the LME Lead Index. The
effect of completed transactions is reported on a cash flow exchanged basis. Open
transactions at the period end are reported against their fair value (see note 24.3)

Monbat AD
Separate financial statements
31 December 2022
64
33. Other financial items
2022 2021
BGN ‘000 BGN ‘000
Loss from exchange differences on receivables and
payables 645 524
Other financial income 2 8
Other financial items 647 532
34. Financial instruments income
2022 2021
BGN ‘000 BGN ‘000
Changes in the fair value of a conversion option, through
fair value as profit or loss
589 587
Income from sale of investments 485 -
Profit from the recalculation of the cash flows of a bond - 1 737
Financial instruments income 1 074 2 324
In 2022, as a result of a change in market conditions - an increase in the 6M EURIBOR
interest rate, the Company has recalculated the amortized cost of the bond debt. The
revised effective interest rate starting from 2022 is approximately 8% per annum. The
remeasurement of the debt at the revised effective interest rate does not require the
recognition of a one-off effect in the Profit or loss statement in 2022.
Note 21 provides information on the carrying value of the bond and the conversion option.
The gain on sale of investment relates to the sale of a 7.2% interest in the Italian company
COBAT s.p.a. to a third party. The total sale price is TBGN 1 956.
35. Earnings per share and dividends
35.1 Earnings per share
Basic earnings per share have been calculated using the profit attributed to shareholders
of the Company as the numerator.
The weighted average number of shares used for the calculation of basic and diluted
earnings per share, as well as the net profit attributable to ordinary shareholders, is
presented as follows:

Monbat AD
Separate financial statements
31 December 2022
65
2022 2021
Profit attributable for the purposes of calculating basic
income per share (BGN) 1 219 000 1 196 000
Effect from potential shares with reduced value:
Interest on a convertible bond loan (net of tax effect) 3 176 000 2 772 000
Profit attributable to the purpose of calculating diluted
earnings per share: 4 395 100 3 968 000
Weighted average number of shares for the purposes of
calculating basic income per share 38 993 378 39 000 000
Effect from potential shares with reduced value:
Convertible Bond Loan 11 102 853 9 040 666
Weighted average number of shares for the purpose of
calculating diluted earnings per share 50 096 231 48 040 666
Basic earnings per share (BGN per share) 0.03 0.03
The potentially ordinary shares are treated as diluted shares only if their conversion into
ordinary shares would reduce the profit or increase the loss of a share from continuing
ordinary activities. The effect of the conversion, exercise of rights or other issue of
potential ordinary shares that would be directed against a reduction in the amount of net
earnings per share is not taken into account in the calculation of the net earnings per
diluted share.
Based on the calculations made, the Company has estimated that the issue of a convertible
bond loan and its conversion into ordinary shares would increase the profit, so it does not
disclose earnings per diluted shares.
35.2 Dividends
At the General Meeting of the Shareholders, which took place on 14 th June 2022, a decision
has been taken to distribute a dividend at the amount of TBGN 5 500, which is part of the
profit for 2021 at the amount of TBGN 1 195 and previous years at the amount of TBGN
4 304. This amount represents a payment of BGN 0.14 per share.
As of 31.12.2022, the Company has paid out a dividend at the amount of TBGN 5 434.
At the General Meeting of the Shareholders, which took place on 10 th June 2021, a decision
has been taken to distribute a dividend at the amount of TBGN 7 000, which is part of the
profit for 2020 at the amount of TBGN 5 356 & 2019 at the amount of TBGN 1 643. This
amount represents a payment of BGN 0.18 per share.
As of 31.12.2021, the Company has paid out a dividend at the amount of TBGN 6 990.
36. Related party transactions
The Company's related parties include its shareholders, subsidiaries, companies under
common control, key management and others as described below.
Unless otherwise stated, none of the transactions incorporate special terms and conditions
and no guarantees were given or received. Outstanding balances are usually settled by
bank accounts. The related parties of the Group are described below:

Monbat AD
Separate financial statements
31 December 2022
66
Related party Country Type of relation
Prista Oil Holding EAD Bulgaria Parent company
Prista Oil Group B.V. The Netherlands Ultimate parent company
Atanas Stoilov Bobokov Bulgaria
Person exercising joint
control over the Parent
Company
Plamen Stoilov Bobokov Bulgaria
Person exercising joint
control over the Parent
Company
YU Monbat Serbia Subsidiary
Start AD Bulgaria Subsidiary
MONBAT RECYCLING Romania Subsidiary
MONBAT DOO Serbia Subsidiary
Energy Batteries Nigeria Subsidiary
Monbat New Power AD Bulgaria Subsidiary
Monbat Recycling EAD Bulgaria Subsidiary
Monbat OOD Romania Subsidiary
Monbat Sped EOOD Bulgaria Subsidiary
Monbat Holding Germany Subsidiary
Monbat New Power Germany Germany Subsidiary
EAS Germany Germany Subsidiary
Monbat Italy Srl Italy Subsidiary
Piombifera Italiana Italy Subsidiary
STC SRL Italy Italy Subsidiary
Monbat Immobilien GmbH Austria Subsidiary
ART Monbat Bulgaria Subsidiary
Monbat SA Proprietary Ltd South Africa Subsidiary
Monbat Batterien Gmbh Austria Subsidiary
Monbat NBP EAD Bulgaria Subsidiary
Societe Nouvelle des Accumulateurs
Nour Tunisia Subsidiary
Société NOUR Distribution Tunisia Subsidiary
Société Technique et Ingénierie de
Précision Tunisia Subsidiary
Société NOUR des Batteries
Industrielles Tunisia Subsidiary
Société NOUR Recycling Tunisia Subsidiary
Leventa OOD Bulgaria Associate
Chavdar Donchev Danev Bulgaria
Member of the BoD of
Monbat AD
Viktor Stanimirov Spiriev
Petar Hristov Petrov Bulgaria
Member of the BoD of
Monbat AD
Kyle Anderson Bulgaria
Member of the BoD of
Monbat AD
Florian Huth Germany
Member of the BoD of
Monbat AD
Petar Nikolov Bozadzhiev Bulgaria
Member of the BoD of
Monbat AD
Evelina Pavlova Slavcheva Bulgaria
Member of the BoD of
Monbat AD
Monbat Trading OOD Bulgaria
Other related party and a
shareholder
PRISTA INVEST 2016 AD Bulgaria Other related parties
Alliance Energy Companies AD Bulgaria Other related parties
Torlashka sreshta EOOD Bulgaria Other related parties
Monbat Eco Projects OOD Bulgaria Other related parties

Monbat AD
Separate financial statements
31 December 2022
67
36.1. Transactions with parent company
2022 2021
BGN ‘000 BGN ‘000
Prista Oil Holding EAD
- sale of services 9 34
- sale of finished goods 170 -
- sale of goods 16 -
- purchase of materials 20 21
- purchase of services 24 27
- interest accrued 739 703
- dividend paid 2 350 2 991
- deposit refunded - 314
36.2. Transactions with subsidiaries
2022 2021
BGN ‘000 BGN ‘000
Start AD
- sale of production 4 751 3 978
- sale of goods - 19
- sale of services and other 47 116
- purchase of materials 7 389 6 849
- purchase of goods 76 066 69 628
- purchase of services 10 -
- purchase of non-current assets 37 -
- other purchases 1 6
In 2022, sales of materials to related parties at the amount of TBGN 49 582 (2021: TBGN
43 471) and invoiced services at the amount of TBGN 188 (2021: TBGN 265) are recorded
net of the carrying amount of the sold materials and the reported costs of materials and
the invoiced costs and the profit from the transactions at the amount of TBGN 46 (2021:
TBGN 114) is included under "Sale of services".
2022 2021
BGN ‘000 BGN ‘000
Monbat DOO Serbia
- purchase of materials 51 264 42 581
- purchase of services 12 14
Monbat SA Proprietary Limited
- sale of goods 353 189
- sale of production 1 604 993
- sale of services 27 -
- interest accrued 39 39
YU Monbat Serbia
- sale of production 2 682 4 145
- sale of goods 667 628
Monbat Recycling Romania
- purchase of materials 50 430 48 496
- purchase of services 107 156

Monbat AD
Separate financial statements
31 December 2022
68
2022 2021
BGN ‘000 BGN ‘000
Monbat Recycling EAD
- rendering of services 496 198
- sale of materials 1 710 1 757
- sale of other (lead-containing semi-finished/technological
waste)
23 397 27 778
- purchase of materials 76 305 82 289
- purchase of services 173 229
- purchase of other 117 90
In 2022, sales of materials to Monbat Recycling Romania at the amount of TBGN 758
(2021: TBGN 858) are generated net from the carrying amount of the sold materials and
incurred expenses for materials. There is no profit recorded from the sales.
Monbat OOD Romania
- sale of production 1 929 1 741
- sale of goods 286 423
Monbat Holding Germany
- loan granted - 2 181
- interest accrued 27 45
- repayment of loan 1 878 978
Monbat Sped
- repaid loan, incl. the interest 124 148
- interest accrued 18 21
- purchase of services 2 266 1 444
- purchase of materials 11 10
- other purchases 1 1
- rendering of services 25 1
- sale of materials 1 6
- sale of goods 6 3
ART Monbat
- loan granted 1 184 427
- interest accrued 169 125
- purchase of materials 28 -
- purchase of services - 9
- purchase of assets - 7
- rendering of services 2 4
Monbat Tunisia BV
- loan granted 20 29
- repaid loan 1 -
- interest accrued 1 4
Energy Batteries Nigeria
- rendering of services 29 15
- sale of production 1 324 706
Monbat Immobilien GmbH
- loan granted 292 78
- repaid loan, incl interest - 7 958
- interest accrued 9 144

Monbat AD
Separate financial statements
31 December 2022
69
36.3 Transactions with other related parties
2022 2021
BGN ‘000 BGN ‘000
Prista Invest 2016 AD
- loan granted 1 580 2 114
- interest accrued 89 7
Aliance Energy Companies AD
- loan granted 700 -
- interest accrued 1 -
Torlashka Sreshta EOOD
- interest accrued 6 6
Monbat Trading OOD
- purchase of goods & services 3 456 2 107
- dividend distribution 388 494
- sales of services 48 48
- advance provided 703 -
- repaid loan 594 212
- interest accrued 125 141
- interest paid 126 268
36.4 Transactions with key management personnel
The key management personnel includes the Board of Directors of the Company as well
as the procurators. Key management personnel remuneration includes the following
expenses:
2022 2021
BGN ‘000 BGN ‘000
Monbat Batterien GmbH Austria
- loan granted - 49
- interest accrued - 10
- sale of production - 197
Monbat NBP
- loan granted 150 1 450
- repaid loan - 900
- interest accrued 148 134
Societe Nouvelle des Accumulateurs Nour
- purchase of materials 444 -
- sale of materials 496 -
- sale of production 233 -
- sale of services 90 -
Societe Nour Distribution
- sale of materials 120 -
- sale of production 282 -
- sale of services 16 -

Monbat AD
Separate financial statements
31 December 2022
70
2022 2021
BGN ‘000 BGN ‘000
Short-term employee benefits:
Salaries incl. bonuses 1 809 2 046
Social security expenses 21 29
Company car allowance 33 31
Total remuneration 1 863 2 106
37. Related party balances at year-end
37.1. Current receivables from related parties
Note 2022 2021
BGN ‘000 BGN ‘000
Current receivables from subsidiaries 37.1.1 53 353 54 249
Current receivables from the Parent
Company
37.1.2
23 126 22 205
Current receivables from members of the
BoD of Monbat AD and persons exercising
joint control over the parent company
37.1.3
5 911 5 733
Current receivables from other related
parties
37.1.4
8 994 6 559
Current receivables from related
parties 93 384 88 746

Monbat AD
Separate financial statements
31 December 2022
71
37.1.1 Current receivables from subsidiaries
2022 2021
BGN ‘000 BGN ‘000
Receivables from subsidiaries:
- Monbat Recycling EAD – trade receivables 11 624 10 595
- Monbat Recycling EAD – receivables from cession
contracts 19 615 19 615
- Monbat Recycling EAD – dividend receivables 8 455 8 455
- Monbat Sped EOOD – funds provided 486 586
- Monbat Sped EOOD - interest 10 15
- ART Monbat – trade receivables 1 1
- ART Monbat – loan 4 921 3 539
- ART Monbat – interest 410 241
- MONBAT NBP – funds provided 2 700 2 550
- MONBAT NBP – interest 293 146
- MONBAT DOO Serbia – subsidiaries related interest 356 356
- YU Monbat – trade receivables 755 1 123
- Monbat Romania OOD – trade receivables 397 95
- Monbat Holding Germany – funds provided - 1 790
- Monbat Holding Germany – interest 10 68
- Piombifera Italiana – trade receivables 1 1
- MONBAT SA Prop. Ltd – trade receivables 856 704
- MONBAT SA Prop. Ltd – funds provided 978 978
- MONBAT SA Prop. Ltd – interest 78 39
- Energy Battery Nigeria – trade receivables (net of
accumulated impairment at the amount of TBGN 2 434 as
of 31.12.2022)
2 702 3 199
- Monbat Immobilien – interest (net of impairment) - 8
- Societe Nouvelle des Accumulateurs Nour – trade
receivables 338 -
- Societe Nour Distribution – trade receivables 367 -
- Monbat Tunisia – funds provided - 137
- Monbat Tunisia – interest - 8
Total current receivables from subsidiaries 55 353 54 249
37.1.2 Current receivables from the Parent Company
2022 2021
BGN ‘000 BGN ‘000
- Prista Oil Holding EAD – deposit 20 030 20 030
- Prista Oil Holding EAD – interest 2 841 2 102
- Prista Oil Holding – trade receivables 255 73
Current receivables from the Parent Company 23 126 22 205

Monbat AD
Separate financial statements
31 December 2022
72
37.1.3 Current receivables from members of the BoD of Monbat AD and persons
exercising joint control over the Parent Company
2022 2021
BGN ‘000 BGN ‘000
- Plamen Bobokov- funds granted 1 830 1 830
- Plamen Bobokov – interest 264 200
- Atanas Bobokov – funds granted 3 269 3 269
- Atanas Bobokov – interest 548 434
Current receivables from members of the BoD of
Monbat AD and persons exercising joint control over
the Parent Company 5 911 5 733
37.1.4 Current receivables from other related parties
2022 2021
BGN ‘000 BGN ‘000
Receivables from other related parties
- Monbat Trading OOD- trade receivables 707 5
- Monbat Trading OOD – funds provided 3 276 3 870
- Monbat Trading OOD - interest 10 12
- Monbat Eco Projects OOD – funds provided 222 222
- Monbat Eco Projects OOD – interest 56 47
- Torlashka sreshta – funds provided 160 160
- Torlashka sreshta – interest 22 16
- Torlashka sreshta – trade receivables 8 8
- Prista Invest 2016 – funds provided 3 695 2 114
- Prista Invest 2016 – interest 96 7
- Societe Nouvelle des Accumulateurs Nour – trade
receivables - 98
- Alliance Energy Companies AD – funds provided 700 -
- Alliance Energy Companies AD – interest 1 -
- Holdco Investment – funds provided 40 -
- Holdco Investment – interest 1 -
Current receivables from other related parties 8 994 6 559

Monbat AD
Separate financial statements
31 December 2022
73
The main contracts for loans granted to related parties are presented as follows:
1. Prista Oil Holding EAD
Contracts dated 2013
Deposits granted to Prista Oil Holding EAD
Utilized principle: TBGN 17 594
Credit term: 31.05.2025
Interest: 6 % annual interest rate
Balance on the principal as of 31.12.2022 – TBGN 12 045
Repayment: no repayment plan
• Contracts dated 2014
Deposits granted to Prista Oil Holding EAD
Utilized principle: TBGN 2 900
Credit term: 31.05.2025
Interest: 6 % annual interest rate
Balance on the principal as of 31.12.2022 – TBGN 2 900
Repayment: no repayment plan
With annex from 01.06.2015 the interest rate has been changed to 4%. All the
other conditions of the loan contracts are re-negotiated under the same conditions.
• Contracts dated 2017
Deposits granted to Prista Oil Holding EAD
Utilized principle: TBGN 5 085
Credit term: 31.05.2025
Interest: 4 % annual interest rate
Balance on the principal as of 31.12.2022 – TBGN 5 085
Repayment: no repayment plan
With an agreement dated 01.02.2019, the value of the deposit was increased by the
value of the interest on the deposits in the amount of TBGN 2 987.
On 01.02.2019 an additional agreement was signed with respect to deposit contracts
between Prista Oil Holding EAD and Monbat AD. With the agreement:
1. The maturity term of the loans was changed to be repayable on demand but no later
than 20.01.2025
2. The applicable interest rate on the deposits was changed to 6M EURIBOT plus a mark-
up of 3.5%.
3. The accrued and unpaid interest expense was capitalized as part of the outstanding
deposits.
The recoverability of the receivables from the parent company Prista Oil Holding EAD
(at the amount of TBGN 23 125) was assessed based on a recoverability scenario, which
includes repayment based on cash flows generated by the operating activities of the
company, cash flows generated from investing and financing activities for a five-year
period which also include the expected dividend income (Monbat Group's dividend
distribution capacity estimate based on its projected cash flows over a five-year period)
and loan proceeds. In assessing the recoverability of the receivables from the parent
company, the contractual guaranteed agreement related to shares of Project Ruse AD,
property of Atanas Bobokov and Prista Old Holding EAD, is considered. The monetary
value of this agreement concluded between the Company and Prista Oil Holding EAD is
equivalent to net exposition of the receivables of the Company from Prista Oil Holding
EAD, Prista Invest 2006 AD, Atanas Bobokov and Plamen Bobokov (TBGN 32 827).

Monbat AD
Separate financial statements
31 December 2022
74
2. Monbat Eco Projects
• Contracts dated 2016
Utilized principal: TBGN 222
Credit term: 31.12.2022
Interest: 4 % annual interest rate
Balance on the principal as of 31.12.2022 – TBGN 222
Repayment: no repayment plan
3. Monbat Sped EOOD
• Contracts dated 2018
Utilized principal: TBGN 396
Credit term: 31.12.2022
Interest: 3.5 % annual interest rate
Balance on the principal as of 31.12.2022 – TBGN 96
Repayment: no repayment plan
• Contracts dated 2019
Utilized principal: TBGN 390
Credit term: 31.12.2022
Interest: 3.5 % annual interest rate
Balance on the principal as of 31.12.2022 – TBGN 390
Repayment: no repayment plan
4. ART Monbat
• Contracts dated 2019
Utilized principal: TBGN 2 869
Credit term: 31.12.2022
Interest: 3.5 % annual interest rate
Balance on the principal as of 31.12.2022 - TBGN 2 869
Repayment: no repayment plan
• Contracts dated 2021
Utilized principal: TBGN 670
Credit term: 31.12.2022
Interest: 3.5 % annual interest rate
Balance on the principal as of 31.12.2022 - TBGN 670
Repayment: no repayment plan
• Contracts dated 2022
Utilized principal: TBGN 1 382
Credit term: 31.12.2022
Interest: 3.5 % annual interest rate
Balance on the principal as of 31.12.2022 - TBGN 1 184
Repayment: no repayment plan

Monbat AD
Separate financial statements
31 December 2022
75
5. Monbat Trading OOD
• Contracts dated 2019
Utilized principal: TBGN 3 000
Credit term: on demand but not later than 01.12.2024
Interest: 3.5 % annual interest rate
Balance on the principal as of 31.12.2022 – TBGN 2 191
Repayment: no repayment plan
• Contracts dated 2020
Utilized principal: TBGN 1 082
Credit term: on demand but not later than 01.12.2024
Interest: 3.5 % annual interest rate
Balance on the principal as of 31.12.2022 – TBGN 1 082
Repayment: no repayment plan
6. Monbat Immobilien
• Contracts dated 2019
Utilized principal: TBGN 7 025
Credit term: 31.12.2020
Interest: 4.0 % annual interest rate
Balance on the principal as of 31.12.2022 – net of impairment TBGN 0.00
Repayment: no repayment plan
• Contracts dated 2020
Utilized principal: TBGN 303
Interest: 4.0 % annual interest rate
Balance on the principal as of 31.12.2022 – net of impairment TBGN 0.00
Repayment: no repayment plan
• Contracts dated 2022
Utilized principal: TBGN 292
Interest: 4.0 % annual interest rate
Balance on the principal as of 31.12.2022 – net of impairment TBGN 0.00
Repayment: no repayment plan
7. Monbat SA Proprietary Limited Tunisia
• Contracts dated 2019
Utilized principal: TBGN 978
Credit term: 31.12.2022
Interest: 4.0 % annual interest rate
Balance on the principal as of 31.12.2022 – TBGN 978
Repayment: no repayment plan
8. Torlashka sreshta
• Contracts dated 2019
Utilized principal: TBGN 160
Credit term: 31.12.2022
Interest: 3.5 % annual interest rate
Balance on the principal as of 31.12.2022 – TBGN 160
Repayment: no repayment plan

Monbat AD
Separate financial statements
31 December 2022
76
9. Alliance Energy Companies AD
• Contracts dated 2022
Utilized principal: TBGN 700
Credit term: 31.12.2022
Interest: 4.0 % annual interest rate
Balance on the principal as of 31.12.2022 – TBGN 700
Repayment: no repayment plan
10. Atanas Bobokov
• Contracts dated 2018, 2019 and annexes to them
Utilized principal: TBGN 4 136
Credit term: 31.12.2022
Interest: 3.5 % annual interest rate
Balance on the principal as of 31.12.2022 – TBGN 3 219
Repayment: no repayment plan
• Contract dated 2020
Utilized principal: TBGN 50
Credit term: 28.02.2022
Interest: 3.5 % annual interest rate
Balance on the principal as of 31.12.2022 – TBGN 50
Repayment: no repayment plan
11. Plamen Bobokov
• Contracts dated 2018, 2019 and annexes to them
Utilized principal: TBGN 2 080
Credit term: 31.12.2022
Interest: 3.5 % annual interest rate
Balance on the principal as of 31.12.2022 – TBGN 1 830
Repayment: no repayment plan
On 15.03.2023 the Board of Directors of Monbat AD has made a decision after receiving
an invitation/ proposal from the debtors to renegotiate the term of loans granted and
maturing as of 31.12.2022 to Atanas Bobokov, Plamen Bobokov, Torlashka sreshta and
Monbat Eco Projects with a new maturity date as of 31.12.2023 and revised interest rate
of 6M EURIBOR plus a mark-up of 3.5%.
The loans were renegotiated with an additional agreement on 15.03.2023.
Loans to subsidiaries maturing as of 31.12.2022 are in the process of renegotiation and
their maturity is expected to be extended by the remaining amount of the outstanding
liability as of the date of annexation.
Management has reviewed recoverability of related party receivables, taking into account
the specific business plans for the development of the respective companies, the collateral
provided and the historical experience of the Company with credit losses from related
parties by including forecast information.
In view of the expected developments in the business activities of the subsidiary Energy
Battery Nigeria the Company recorded an impairment of TBGN 1 000 (2021: TBGN 300).
The Company has also recorded an impairment of its receivables and from Monbat
Batterien GmbH and Monbat Immobilien at the amount of TBGN 0 (2021: TBGN 206) and
TBGN 318 (2021: TBGN 99) respectively.

Monbat AD
Separate financial statements
31 December 2022
77
Altogether, in 2022, the Company has reported impairments of current receivables from
related parties at the amount of TBGN 1 318 (2021: TBGN 920). All impairments are
presented under art. “Impairments of financial assets” in the separate statement of profit
or loss.
37.2. Current related party payables
2022 2021
BGN ‘000 BGN ‘000
- Start AD – trade payables 12 168 4 838
- Monbat Recycling Romania – trade payables 19 766 17 412
- Monbat DOO Serbia – trade payables 6 702 4 729
- Monbat Sped EOOD – trade payables 523 223
- Monbat New Power Germany 48 48
- Prista Holco Cooperatief U.A. – loan received 389 -
- ART Monbat AD – trade payables 25 -
- Monbat Recycling EAD – trade payables - 598
Current liabilities to subsidiaries 39 621 27 848
-dividends to shareholders 74 10
Current related party liabilities 39 695 27 858
Terms of transactions with related parties
Sales and purchases from related parties are based on contractually agreed prices.
Outstanding balances at the end of the year are unsecured, interest-free (excluding loans)
and will be settled in cash. No guarantees have been provided or received for receivables
from or liabilities to related parties, except for those disclosed below. An impairment
review is performed each financial year based on an analysis of the financial position of
the related party and the market in which it operates.
38. Contingent assets and contingent liabilities
No warranty and legal claims were brought against the Company during the year.
Monbat AD is a co-debtor under the contact for credit line N196/2016 dated 17.09.2016
between Monbat Recycling EAD and Piraeus Bank/ Eurobank Bulgaria AD
Maturity date: 30.09.2023
Loan amount: EUR 2 500 000
Type of credit: for working capital
Collaterals: First rank pledge of trade receivables.
Interest rate and commission: 3 M EURIBOR + fixed mark-up
Repayment schedule: Currently paid depending on the available cash and cash
equivalents.
Balance as at 31.12.2022 at the amount of EUR 1 392 158 or BGN 2 722 824.

Monbat AD
Separate financial statements
31 December 2022
78
Monbat AD is a co-debtor under the contact for credit line N17803 dated 15.12.2022
between Monbat Recycling EAD and UBB Interlease EAD
Maturity date: 15.12.2025
Loan amount: BGN 487 500
Type of credit: finance lease
Collaterals: Machinery per listing
Interest rate and commission: 3 M EURIBOR + fixed mark-up
Repayment schedule: annuity payments
Balance as at 31.12.2022 at the amount of BGN 317 822 .
Monbat AD is a co-debtor under the contact for finance lease N60451 dated 04.10.2021
between Monbat Recycling EAD and OTP Leasing EOOD
Maturity date: 30.09.2026
Loan amount: EUR 440 825
Type of credit: finance lease
Collaterals: Leased assets per listing
Interest rate and commission: 3 M EURIBOR + fixed mark-up
Repayment schedule: annuity payments
Balance as at 31.12.2022 at the amount of EUR 398 879 or BGN 780 139
Monbat AD is a guarantor of the contract for credit N1317 by the 18.03.2016, concluded
between Start AD and UBB AD.
Maturity Date: 20.01.2028
Amount of Credit: EUR 4 500 000
Type of credit: for working capital
Interest: 3 m EURIBOR + mark up
Collateral:
Land property with an identification number 72624.603.300, together with the buildings
built on it.
Land property with an identification number 72624.603.190, together with the buildings
built on it.
Land property with an identification number 72624.603.191, together with the buildings
built on it.
Land property with an identification number 72624.603.193, together with the buildings
built on it.
Land property with an identification number 72624.603.196, together with the buildings
built on it.
Special bet on DMA. Pledge on cash balances on the accounts in UBB JSC.
Balance to 31.12.2022 in the amount of EUR 4 493 208 or BGN 8 787 952.
Monbat AD is a co-debtor under the contact for leasing N2073015 dated 15.10.2018
between Monbat Sped EOOD and VFS Bulgaria EOOD.
Maturity date: 16.10.2023
Amount of leasing: EUR 281 520
Type of credit: closed-end financial leasing
Collaterals: Lease assets (annex 1 to contract 2073015)
Interest rate and commission: 12 M EURIBOR + fixed mark-up 2.457%
Repayment schedule: annuity payments
Balance as at 31.12.2022 at the amount of EUR 58 945 or BGN 115 287.
Monbat AD is an aval of the contract for leasing N2274493 dated 20.08.2019, concluded
between Monbat Sped EOOD and VFS Bulgaria EOOD.
Maturity Date: 16.09.2023
Amount of leasing: EUR 14 085
Type of credit: closed-end financial leasing
Collateral: Lease assets (annex 1 to contract 2274493)

Monbat AD
Separate financial statements
31 December 2022
79
Interest: 12 m EURIBOR + mark-up 2,901%
Repayment schedule: annuity payments
Balance to 31.12.2022 at the amount of EUR 2 311 or BGN 4 519.
Monbat AD is an aval of the contract for leasing N2454239 dated 05.06.2020, concluded
between Monbat Sped EOOD and VFS Bulgaria EOOD.
Maturity Date: 16.06.2025
Amount of leasing: EUR 176 490
Type of credit: closed-end financial leasing
Collateral: Lease assets (annex 1 to contract 2454239)
Interest:
- For traction-engines – 12 M EURIBOR + mark-up 2,065%
- For semi-trailers – 12 M EURIBOR + mark-up 2,465%
Repayment schedule: annuity payments
Balance to 31.12.2022 at the amount of EUR 96 488 or BGN 188 714.
Monbat AD is an aval of the contract for leasing N2274306 dated 07.10.2019, concluded
between Monbat Sped EOOD and VFS Bulgaria EOOD.
Maturity Date: 16.11.2024
Amount of leasing: EUR 442 125
Type of credit: closed-end financial leasing
Collateral: Lease assets (annex 1 to contract 2274306)
Interest:
- For traction-engines – 12 M EURIBOR + mark-up 2,511%
- For semi-trailers – 12 M EURIBOR + mark-up 2,918%
Repayment schedule: annuity payments
Balance to 31.12.2022 at the amount of EUR 195 940 or BGN 383 226.
Monbat AD is a co-debtor under the contact for financial leasing N0026504/H/30.06.2021
dated 30.06.2021 between START AD and Monbat Interlease EAD.
Maturity date: 25.07.2025
Amount of leasing: EUR 425 479
Type of credit: financial leasing
Collaterals: Lease assets (Annex A to contract 0026504/H/30.06.2021)
Interest: 3 M EURIBOR + fixed mark-up 2.40%
Repayment schedule: equal monthly installments
Balance as at 31.12.2022 at the amount of EUR 324 403 or BGN 634 477.
Monbat AD is a co-debtor under the contact for financial leasing for equipment
BUL/2108/AD/EM dated 21.12.2018 between START AD and KBC Leasing Bulgaria EOOD.
Maturity date: 20.01.2024
Amount of leasing: EUR 1 086 395
Type of credit: financial leasing
Collaterals: Lease assets (Clause 1.1 to contract BUL/2108/AD/EM dated 21.12.2018)
Interest: 3 M EURIBOR + fixed mark-up 1.90%
Repayment schedule: equal monthly installments
Balance as at 31.12.2022 at the amount of EUR 265 665 or BGN 519 596.
Tax obligations
The latest tax audits of the Company were performed by the tax administration as follows:
• Corporate tax - full tax audit for the period 01.01.2014 -31.12.2019;
• VAT - full tax audit for the period 01.12.2014 -31.05.2020;
• Personal income tax - until December 31, 2019;
• Social security - until December 31, 2019;

Monbat AD
Separate financial statements
31 December 2022
80
The management of the Company does not consider that there are significant risks as a
result of the dynamic fiscal and regulatory environment in Bulgaria, which would require
adjustments in the financial statements for the year ended 31 December 2022.
39. Categories of financial assets and liabilities
The carrying amounts presented in the statement of financial position relate to the
following categories of assets and liabilities:
Financial assets Note 2022 2021
BGN ‘000 BGN ‘000
Debt instruments measured at amortized
cost
Trade receivables 12 44 725 50 345
Short-term financial assets 11 149 1 897
Related party receivables 37 93 384 88 746
Cash and cash equivalents 15 2 527 4 237
Current assets 140 785 145 225
Financial liabilities
Debt instruments measured at amortized
cost
Borrowings 19 83 750 81 794
Convertible bonds 21 53 224 51 458
Related party payables 37 39 750 27 858
Trade payables 22 11 282 14 151
Lease liabilities 8 2 378 1 021
Other payables 24.2 6 776 882
197 160 177 164
Debt instruments measured at fair value
Fair value of conversion option 21 5 280 5 867
Derivatives 24.3 364 -
5 664 5 867
Due to the short-term nature of cash, trade receivables, short-term financial assets, short-
term receivables from related parties, trade payables, liabilities to related parties, current
loans, current liabilities under financial leasing and other liabilities, their fair value is close
to the respective carrying amount.
The fair value of long-term loans, non-current liabilities under lease liabilities and non-
current receivables from related parties is close to the respective carrying amount, as the
interest rates associated with these liabilities are close to market rates.
The fair value of related party loans and interest-bearing loans from financial institutions
is based on an analysis of the agreed interest rates against the interest rates currently
available for debt with similar terms and remaining maturity. On this basis, management
has determined that the fair value approximates the carrying amount. The fair value of
loans granted, and interest-bearing loans received falls into level 2 of the fair value
hierarchy. The fair value of an exchange-traded bond loan is determined using the relevant
quotation in an active market at the end of the reporting period. The fair value is close to
the carrying value of the debenture loan. The fair value of the debenture loan falls at level
1 of the fair value hierarchy.

Monbat AD
Separate financial statements
31 December 2022
81
The fair value of the option to convert the debenture loan at its initial recognition is
estimated using a valuation model assuming that the share price of the Company follows
a Brownian motion. The evaluation model uses an iterative Monte Carlo simulation, using
a large number of test results to approach the target solution. The fair value of the
conversion option falls at level 3 of the fair value hierarchy.
Subsequent evaluations of the convertible bond through the application of the same model
were performed in 2022. The Company reports an income from the change in the fair
value of the convertible option at the amount of TBGN 587 which is included under art.
“Financial instruments income” in the Statement of Profit or Loss (2021: TBGN 589).
Derivative liabilities reflect open lead swap transactions at 31 December, 2022, measured
at fair value. The fair value has been estimated based on London Metals Exchange (LME)
quoted lead prices. The Company does not record financial assets at fair value through
profit and loss (2021: TBGN 1 521).
Refer to note 3.13 about information related to the accounting policy for each category
financial instruments. Description of the risk management objectives and policies of the
Company related to the financial instruments is presented in note 40.
Changes in liabilities arising from financing activities
The following table summarizes changes in liabilities arising from financial activities,
including changes in cash flows and non-monetary changes, and contains a reconciliation
of the opening and closing balances in the statement of financial position of financial
liabilities for the year ending December 31, 2022.
1 January
2022
Cash
inflows
Cash
Outflows
Accruals
using the
effective
interest
method Others
31 December
2022
BGN
000
BGN
’000
BGN
’000
BGN
‘000
BGN
’000
BGN
’000
Current interest -
bearing loans and
borrowings 81 794 171 826 (170 962) 83 1 009 83 750
Current and non-current
lease liabilities 1 021 - (901) 92 2 166 2 378
Convertible bond 51 458 - - 3 529 (1 763) 53 224
Conversion option 5 867 - - - (587) 5 280
Derivatives - - - - 364 364
Dividends payable 42 - (5 434) - 5 497 105
Total liabilities from
financing acitivity 140 082 171 826 (177 297) 3 704 6 686 145 101

Monbat AD
Separate financial statements
31 December 2022
82
1 January
2021
Cash
inflows
Cash
Outflows
Accruals
using the
effective
interest
method Others
31 December
2021
BGN
000
BGN
’000
BGN
’000
BGN
‘000
BGN
’000
BGN
’000
Current interest -
bearing loans and
borrowings 81 173 128 455 (128 115) 281 - 81 794
Current and non-current
lease liabilities 1 122 - (657) 36 520 1 021
Convertible bond 51 759 - - 1 436 (1 737) 51 458
Derivatives 6 454 - - - (587) 5 867
Dividends payable 71 - (6 990) - 6 961 42
Total liabilities from
financing activity 140 579 128 455 (135 762) 1 753 5 157 140 182
40. Financial instruments risks
Risk management objectives and policies
The Company is exposed to various risks in relation to financial instruments. The
Company's financial assets and liabilities by category are summarized in note 39. The main
types of risks are market risk, credit risk and liquidity risk.
The Company's risk management is coordinated at its headquarters, in close co-operation
with the board of directors, and focuses on actively securing the Company's short to
medium-term cash flows by minimizing the exposure to financial markets. Long-term
financial investments are managed to generate lasting returns. The Company does not
actively engage in the trading of financial assets for speculative purposes, nor does it write
options. The Company is exposed to market risk through its use of financial instruments
and specifically to currency risk and interest rate risk.
40.1. Market risk analysis
40.1.1 Foreign currency risk
Most of the Company’s transactions are carried out in Bulgarian leva (BGN) and EUR.
Exposures to currency exchange rates arise from the Company's overseas sales and
purchases, which are primarily denominated in US dollars. To mitigate the Company's
exposure to foreign currency risk, non-BGN cash flows are monitored, and forward
exchange contracts are entered into in accordance with Company’s risk management
policies. Generally, Company’s risk management procedures distinguish short-term
foreign currency cash flows (due within 6 months) from longer-term cash flows. Where
the amounts to be paid and received in a specific currency are expected to largely offset
one another, no further hedging activity is undertaken. The amounts shown are those
reported to key management translated into Bulgarian leva at the closing rate:

Monbat AD
Separate financial statements
31 December 2022
83
Short-term exposure
USD
BGN ‘ 000
31 December 2022
Assets 5 237
Liabilities -
Total exposure 5 237
31 December 2021
Assets 6 864
Liabilities (25)
Total exposure 6 839
The following table illustrates the sensitivity of post-tax profit for the year and other
components of equity in regard to the Company's financial assets and financial liabilities
and the USD/BGN exchange rate all other things being equal.
It assumes a +/- 10% change of the BGN/USD exchange rate as of 31 st December 2022
(2021: 10 %). Both of these percentages have been determined based on the average
market volatility in exchange rates in the previous 12 months. The sensitivity analysis is
based on the Company's foreign currency financial instruments held at each reporting date
and also takes into account.
If the BGN had strengthened against the USD by 10% (2021: 10%) then this would have
had the following impact:
Effect on financial
performance for the year
USD
BGN ‘000
31 December 2022 524
31 December 2021 684
If the BGN had weakened against the USD by 10% (2021: 10%) then this would have had
the following impact:
Effect on the financial
performance for the year
USD
BGN ‘000
31 December 2022 (524)
31 December 2021 (684)
Exposures to foreign exchange rates vary during the year depending on the volume of
overseas transactions. Nonetheless, the analysis above is considered to be representative
of the Company's exposure to currency risk.

Monbat AD
Separate financial statements
31 December 2022
84
40.1.2 Foreign currency risk
The Company's policy is to minimize interest rate cash flow risk exposures on long-term
financing. As of 31 December 2022, the Company is exposed to changes in market interest
rates through bank borrowings at variable interest rates. All other financial assets and
liabilities of the Company are at fixed interest rates. The following table includes the
carrying amount of the financial instruments by type of interest rate:
Fixed yield instruments 2022 2021
BGN ‘000 BGN ‘000
Financial assets 120 755 145 225
Financial liabilities (62 120) (46 112)
Net exposure 58 635 99 113
Floating rate instruments 2022 2021
BGN ‘000 BGN ‘000
Financial assets 20 030 -
Financial liabilities (135 041) (131 052)
Net exposure (115 011) (131 052)
The table below presents an analysis of the sensitivity to possible changes in interest rates
with their effect on pre-tax profit (through the effect on loans and borrowings with floating
interest rates), provided that all other variables are assumed to be constant. There is no
effect on the other components of the Company's equity.
Period
Increase/decrease
in interest rates
Effect on profit before
taxes BGN ‘000
2022 + 1% (1 150)
2022 - 1% 1 150
2021 + 1% (607)
2021 - 1% -
The estimated baseline movement for the sensitivity analysis to possible changes in
interest rates is based on the currently observed market environment, showing
significantly higher volatility compared to previous years.
40.2 Credit risk
Credit risk is the risk that counterparty fails to discharge an obligation to the Company.
The Company is exposed to this risk for various financial instruments, for example by
granting loans and receivables to customers, placing deposits, etc. The Company's
maximum exposure to credit risk is limited to the carrying amount of financial assets
recognized at the reporting date.
Trade receivables and contract assets
The Company continuously monitors defaults of customers and other counterparties,
identified either individually or by group, and incorporate this information into its credit
risk controls. Where available at reasonable cost, external credit ratings and/or reports on

Monbat AD
Separate financial statements
31 December 2022
85
customers and other counterparties are obtained and used. The Company's policy is to
deal only with creditworthy counterparties. The Company's management considers that all
the above financial assets that are not impaired or past due for each of the reporting dates
under review are of good credit quality.
Outstanding receivables from customers and contractual assets are monitored on an
ongoing basis and all deliveries to large customers are generally covered by credit
insurance or letters of credit received from reputable banks and other financial institutions.
At each reporting date, an analysis is made of the need for impairment when using a
provision matrix or expected credit loss model for the entire term of the instrument of
certain exposures for the purpose of estimating expected credit losses. Provisions
percentages are based on days in arrears for the purpose of grouping different customer
segments with similar loss models (i.e., by geographical area, product type, customer type
and rating, as well as collateral and letters of credit and other forms of credit insurance).
The calculation reflects the probability-weighted result, the value of money over time, and
the reasonable and supportive information available at the reporting date for past events,
present conditions and forecasts for future economic conditions. In general, trade
receivables are written off if they are past due for more than one year and are not subject
to enforcement action. Letters of credit and other forms of credit insurance are considered
an integral part of trade receivables and are taken into account in the calculation of
impairment. As of 31 December 2022, 78% (2021: 78%) of the Company's trade
receivables, where the provision matrix was used, are covered by letters of credit and
other forms of credit insurance. These credit extensions received by the Company lead to
a reduction of the expected credit losses. The Company assesses the concentration of risk
with respect to trade receivables as low, as its clients are located in several jurisdictions
and operate substantially in independent markets.
As of 31 December 2022, the aging analysis of trade receivables and contract assets
with customers, where the matrix of provisions is used, is presented in the table:
Trade receivables at 31.12.202 2 (BGN ‘000)
Days overdue
< 90
days
91-180
days
181-
365
days
> 365
days Total
Expected % credit loss 0.07% 8.83% 90.81% 98.43% 1.00%
Gross carrying amount of trade
receivables 33 990 211 3 306 34 510
Expected credit loss (ECL) 24 19 3 301 346
As of 31 December 2021, the aging analysis of trade receivables and contract assets
with customers, where the matrix of provisions is used, is presented in the table:
Trade receivables at 31.12.2021 (BGN ‘000)
Days overdue
< 90
days
91-180
days
181-
365
days
> 365
days Total
Expected % credit loss 0.00% 37.38% 100% 100% 0.46%
Gross carrying amount of trade
receivables 42 027 107 2 153 42 289
Expected credit loss (ECL) - 40 2 153 195

Monbat AD
Separate financial statements
31 December 2022
86
The Company has estimated provisions for loss for certain trade receivables whose credit
risk has increased significantly using the expected credit losses for the entire life of the
instrument (ECL approach). The amount of the gross book value of trade receivables
estimated under this approach is TBGN 2 595 (2021: TBGN 2 595). The accrued
impairment of these receivables as of 31.12.2022 amounts to TBGN 2 595 (2021: TBGN
2 335).
In 2022, the Company has not calculated expected credit loss (ECL) for receivables from
Ukrainian companies at the amount of TBGN 7 992 (net of impairment). These receivables
are not insured and there are no collateral agreements related to them. Due to the war in
Ukraine, that began on 24.02.2022, the Company is not able to estimate the ECLs in line
with IFRS 9 and has not tested theses receivables for impairment.
Financial instruments and cash deposits
The credit risk of balances with banks and financial institutions is managed by the financial
department of the Group in accordance with its policy. Investments in excess funds are
made only with approved counterparties and within approved credit limits for each
counterparty. The counterparty credit limits are reviewed annually by the Group's Board
of Directors and may be updated throughout the year, subject to approval by the Group's
Finance Committee. The limits are set in order to minimize the concentration of risks and
therefore to mitigate the financial loss from the potential inability of the counterparty to
make payments.
The credit risk for cash and cash equivalents, money market funds, debentures and
derivate financial instruments is considered negligible, since the counterparties are
reputable banks with high quality external credit ratings.
An impairment loss has been recorded in relation to the trade receivables. The carrying
amounts disclosed above are the Company's maximum possible credit risk exposure in
relation to these instruments.
40.3 Liquidity Risk
Liquidity risk is the risk arising from the Company not being able to meet its obligations.
The Company manages its liquidity needs by monitoring scheduled debt servicing
payments for long-term financial liabilities as well as forecast cash inflows and outflows
due in day-to-day business. Liquidity needs are monitored in various time bands, on a
day-to-day and week-to-week basis, as well as on the basis of a rolling 30-day projection.
Long-term liquidity needs for a 180-day and a 360-day lookout period are identified
monthly.
Cash needs are compared with available loans to identify surpluses or deficits. This analysis
determines whether the available loans will be sufficient to cover the needs of the
Company for the period.
The Company maintains cash and marketable securities to meet its liquidity requirements
for 30-day periods at a minimum. Funding for long-term liquidity needs is additionally
secured by an adequate amount of committed credit facilities and the ability to sell long-
term financial assets.
The amounts of the liabilities on their maturity dates reported in this analysis represent
the pre-discounted cash flows agreed in the contracts, which could deviate from the
carrying amounts of the liabilities as of the reporting date.

Monbat AD
Separate financial statements
31 December 2022
87
As of 31 December 2022, the Company's liabilities have contractual maturities (including
interest payments where applicable) as summarized below:
Current up
to 6
months
Current Non-current
31 December 2022 6 to 12 months 1 to 5 years
BGN ‘000 BGN ‘000 BGN ‘000
Bank loans 21 740 49 000 13 010
Lease liabilities 428 426 1 524
Convertible bonds 10 959 - 42 265
Fair value of conversion option of bonds - - 5 280
Related party payables 39 750 - -
Trade payables 11 282 - -
Derivatives 364
Total 84 523 49 426 62 079
In prior reporting periods the Company's liabilities have contractual maturities (including
interest payments where applicable) as summarized below:
Current up
to 6
months
Current Non-current
31 December 2021 6 to 12 months 1 to 5 years
BGN ‘000 BGN ‘000 BGN ‘000
Bank loans 34 200 34 389 13 205
Lease liabilities 318 318 385
Convertible bonds - - 51 458
Fair value of conversion option of bonds - - 5 867
Related party payables 27 858 - -
Trade payables 14 151 - -
Total 76 527 34 707 70 915
Financial assets used for managing liquidity risk
The Company considers expected cash flows from financial assets in assessing and
managing liquidity risk, in particular its cash resources and trade receivables. The
Company's existing cash resources and trade receivables do not significantly exceed the
current cash outflow requirements. Cash flows from trade and other receivables are all
contractually due within six months.
41. Capital management policies and procedures
There are no externally imposed capital requirements on the Company, except for those
related to bank and bond loans.
The Company’s management objectives are:
• To ensure the Company’s ability to continue as a going concern, and
• To provide an adequate return to the shareholder by pricing products and services
in accordance with the level of risk.

Monbat AD
Separate financial statements
31 December 2022
88
The Company monitors capital on the basis of the ratio between net debt and shareholders’
equity.
Net debt is calculated as total debt less the carrying amount of cash and cash equivalents.
The Company manages the capital structure and makes adjustments to it in accordance
with changes in economic conditions and the risk characteristics of the underlying assets.
In order to maintain or adjust the capital structure, the Company may adjust the number
of dividends paid to shareholders, return capital to shareholders, issue new shares, or sell
assets to decrease debt.
The equity may be analyzed as follows for the presented reporting periods:
2022 2021
BGN ‘000 BGN ‘000
Equity 158 572 162 993
Interest-bearing debt 136 974 134 273
- Cash and cash equivalents (2 527) (4 237)
Net debt 134 447 130 036
Net debt to equity 0.85 0.80
The increase in the ratio in 2022 in comparison to the prior period is due to the decrease
in the equity following the distribution of the dividends during the year as well as due to
the decrease in the cash and cash equivalents. The interest-bearing debt has not
undergone significant changes.
42. Events after the reporting period
In January 2023 Britishvolt, the counterparty Monbat AD has entered into an agreement
with to sale its subsidiary Monbat Holding GmbH, has entered into administration legal
proceedings under the UK Insolvency Act from 1986 to restructure its activities following
issues with its cash-flows.
In the end of February 2023, the company Recharge Industries acquired Britishvolt
following the abovementioned administration process (Note 7.1).
On 22 March 2023 the Company together with its subsidiary Monbat Recycling EAD, sent
a notice to Britishvolt to terminate the contract for the sale of Monbat Holding GmbH due
to Britishvolt’s failure to comply with the agreed terms.
No other adjusting or non-adjusting events have occurred between the reporting date and
the date of authorization of these individual financial statements.
43. Authorization of the separate financial statements
The financial statements for the year ended 31 December 2022 (including comparatives)
were approved by the Board of Directors on Mach 30, 2023.

i
ANNUAL SEPARATE ACTIVITY REPORT OF
MONBAT AD, SOFIA
FOR THE FINANCIAL 2022
THIS ACTIVITY REPORT WAS PREPARED IN ACCORDANCE WITH THE
PROVISIONS OF ARTICLE. 39 OF THE ACCOUNTANCY ACT, ARTICLE 100N,
PARAGRAPH 7 OF THE LAW ON PUBLIC OFFERING OF SECURITIES AND
ORDINANCE No 2 FROM 09.11.2021 OF FSC
THIS DOCUMENT IS A TRANSLATION OF THE ORIGINAL BULGARIAN TEXT, IN
CASE OF DIVERGENCE THE BULGARIAN TEXT SHALL PREVAIL.

1
FORWARD-LOOKING STATEMENTS
The Annual Report may contain statements which reflect the current vision of the
Company’s Board of Directors regarding the achievement of future financial results,
execution of business strategy, plans and objectives of the management.
These forward-looking statements are related to the operations of MONBAT AD, as
well as the sectors where the entity operates. Statements that include the words “expects”,
“intends”, “plans”, “projects”, “accepts”, “will”, “aims”, “strives”, “can”, “could be”,
“continues”, and other similar statements with regard to the future presentation of the
company are forecasts for the purposes of the Bulgarian securities legislation and other.
Where forward-looking statements are presented, they concern the future
performance of the company which involves risks and uncertainties. It is possible that
different factors and events may arise that could cause a significant difference between
the actual results of MONBAT AD and those specified in the forward-looking statements.
These factors include but are not limited only to the one described in the section entitled
RISK FACTORS and should be considered an integral part of the whole financial and
economic information presented in this document. The forward-looking statements are up
to date as of the date of the Annual Report. In compliance with the obligations under
Bulgarian legislation and the approved policy of MONBAT AD, the company’s Board of
Directors will continue announcing publicly, under the legally provided procedure, new
forecasts as well as updating already presented forward-looking statements that need to
be corrected.
Before making an investment decision, potential investors should carefully consider
the factors stated in the Annual Report which may cause the actual results of MONBAT AD
to differ from the ones presented in this document.
PRESENTATION OF FINANCIAL, MARKET, ECONOMIC AND
STATISTICAL INFORMATION
The financial information in the Annual Report has been prepared in compliance
with the International Financial Reporting Standards (IFRS).
The market, economic and statistical information, as well as information regarding
the financial and economic situation in the Republic of Bulgaria and the Bulgarian securities
market used in the Report has been extracted from various sources, explicitly referred in
the respective parts where such information is presented. Information presented in this
document regarding a part of the systematic risks for MONBAT AD is extracted from
publicly available information, including publications and information disclosed in
compliance with the requirements of the applicable securities legislation and other
regulations. The information presented in this Report regarding the economic sectors
where MONBAT AD operates is extracted from publicly available information, including
publications and information disclosed in compliance with the requirements of the
applicable securities legislation and other regulations. MONBAT AD does not guarantee the
accuracy and exhaustiveness of this information or the presence of complete uniformity in
the information from all these sources. With this regard, MONBAT AD takes responsibility
only for the accurate reproduction of extracts from relevant sources of information.
The Board of Directors of MONBAT AD confirms that the information extracted from
publications and other publicly available sources is reproduced correctly by the relevant
sources and, to the best of its knowledge, no facts which could render the reproduced
information inaccurate or misleading are missed. Nevertheless, the Board of Directors of
MONBAT AD informs that is has relied on the accuracy of this information without
conducting an independent review.

2
DEAR SHAREHOLDERS,
We, the members of the Board of Directors of MONBAT AD, led by the desire to
manage the company in the interest of its shareholders and pursuant to the provisions of
art. 39 of the Accountancy Act, article 100m, paragraph 7 of the LPOS and Appendix No 2
to the artical10, item 1 from Ordinance 2/ 09.11.2021 of FSC, prepared this Activity Report
(“the Report”).
The Report presents comments and analysis of the financial statements and other
essential information regarding the financial situation and the operational results of the
company. The Report reflects correctly the state and the development prospects of the
company.
In 2022 circumstances have occurred that the Company's management believes
could be of relevance for investors in taking a decision to acquire, sell or continue holding
publicly traded securities.
These circumstances have been disclosed within the terms and procedures as
provided by the LPOS to the investors, the regulated securities market and the Financial
Supervision Commission. The same are also available on the company’s website
www.monbatgroup.com.
As of 31.12.2022 MONBAT AD generated revenues from contracts with customers
on a stand-alone basis of BGN 327,007 thousand, which is a decrease of 6.84% compared
to the generated in 2021 revenues from contracts with customers in the amount of BGN
351,010 thousand.
Profit before taxes of MONBAT AD for 2022 is BGN 1,382 thousand, which is an
increase of 190.95% compared to the individual profit before taxes for 2021 (BGN 475
thousand).
Net profit of MONBAT AD on an individual basis as of 31.12.2022 amounts to BGN
1,219 thousand and shows an increase of 1.92% compared to the net profit of the
company on an individual basis for 2021 (BGN 1,196 thousand).
I.GENERAL INFORMATION ABOUT THE COMPANY
The company was incorporated in the Republic of Bulgaria in accordance with the
Bulgarian legislation. The legal and organizational form of MONBAT AD is a joint stock
public company. The company has its registered seat and business address at blv. Cherni
vrah No 32A, 1407 Sofia.
Telephone: + 359 2 962 1150; + 359 2 988 24 13
Fax: + 359 2 962 1146
E-mail: investorrelations@monbat.com
Website: www.monbatgroup.com
As of the date of the preparation of this Activity Report the share registered capital
of the company is BGN 39 000 000, distributed in 39 000 000 dematerialized registered
shares with a nominal value of BGN 1.00 each.
In 2022 and the previous period 2021 there were no changes in the amount of the
capital of MONBAT AD.
As of 31.12.2022 there is one legal entity that has control over the public
company MONBAT AD. This entity is PRISTA OIL HOLDING EAD, Sofia. PRISTA OIL
HOLDING EAD controls another shareholder with considerable share rights, namely
MONBAT TRADING OOD.

3
As of 31.12.2022 the capital structure of MONBAT AD is the following:
Тable No 1
Name of the shareholder Number of shares Percentage of
the capital
PRISTA OIL HOLDING EAD, Sofia 16 666 371 42.73%
MONBAT TRADING Ltd., Sofia 2 752 800 7.06%
PRISTA HOLDCO COOPERATIEF U.A. 8 103 758 20.78%
UPF Doverie 2 582 864 6.62%
MUPF Allianz 2 105 403 5.40%
Other individuals and legal entities 6 788 804 17.41%
Repurchased own shares (27 000) (0.07%)
As of 31.12.2022 the Board of Directors of Monbat AD is the following:
Chavdar Danev – Chairman of the Board of Directors
Petar Petrov – Member of the Board of Directors
Evelina Slavcheva – Member of the Board of Directors
Florian Huth – Member of the Board of Directors
Peter Bozadzhiev – Member of the Board of Directors
Kyle Anderson– Member of the Board of Directors
Viktor Spiriev – Executive member of the Board of Directors
II. OVERVIEW OF THE ACTIVITIES AND THE STATE OF THE COMPANY
1. Principal Activity
The principal activity of MONBAT AD is production of lead-acid starter and
stationary batteries and their servicing. The products of the company can be divided in
the following main groups:
Starter Batteries
The extensive production range of Starter batteries of Monbat AD includes the series for
cars of any class under the name Monbat AGM stop/Start, EFB stop/Start, Monbat P,
Monbat F and Monbat D, and a series for commercial vehicles Monbat EFB, SMF, SHD and
HD.

4
Concerning application, the batteries cover the full range of cars, trucks and agricultural
vehicles and machines, operated in both normal and extreme environmental conditions.
Stationary Batteries
Valve-regulated, lead-acid batteries, with immobilized in the separator electrolyte (AGM),
designed and manufactured by modern technology in accordance with the following
technological standards: IEC 60 896-21 / 22; IEC 61427 - 1/2; EN 50272 - 2; IEC 61056-
1; BS 6290-4.
Applied production standards: ISO 9001; ISO 14001; OHSAS 18001; AQAP 2110.
Product specification according to EUROBAT: Very Long Life.
The hull elements are made of the highest class, non-combustible, ABS-FR UL 94 V0,
material. The product range includes 2, 4, 6, 8 and 12-volt batteries with capacities from
50 to 600 Ah for the following applications:
• Telecom;
• Reserved power supplies;
• High-cycle batteries for photovoltaic and solar installations;
• High -power uninterruptible power supplies (UPS) batteries.
High rate Power UPS Batteries
A battery backup, or uninterruptible power supply (UPS), is primarily used to provide a
backup power source to important equipment. In addition to acting as a backup when the
power goes out, most battery backup devices also operate in network conditioning mode
(ON LINE), guaranteeing the parameters of the power supply to consumers. Monbat AD
produces a range of HIGH RATE POWER UPS BATTERIES especially for UPS applications.

5
Deep cycle batteries
AGM Deep Cycle range features advanced AGM technology with absorbed electrolyte.
Designed for reliable storage solutions for renewable energy applications.
Monbat Semi-traction range is specially designed for applications requiring a permanent
and long-lasting supply of electrical energy.
Monbat Deep Cycle range is specifically designed for powering electrical equipment for
longer periods of time with increased ability of deep discharge cycles.
Special Batteries
Batteries for military application, suitable for tanks and armored vehicles of NATO.
Leisure batteries
The Monbat Leisure & Hobby range is characterized with special design, reliable in
demanding charge/discharge cycling conditions peculiar to recreational and leisure
equipment.
Perfect for seasonal use. Ideal for motorboats, canal boats, yachts, motorhomes, and
caravans.
2. Major raw materials

6
The major raw materials essential to the Co mpany’s activities are lead with purity of
99.99% and 99.985%, lead alloys – tin, antimony and calcium, regranulate, polyethylene
separator and sulfuric acid. The availability of these materials that MONBAT AD holds,
ensures the production process for a period of between 15 and 30 days. Prices of lead and
lead alloys are variable and directly dependent on the exchange prices of lead on the
London Metal Exchange.
During the last few years, the management of MONBAT AD has made considerable
capital expenditure to ensure resource availability of lead and propylene from own
production. This is being executed by building Monbat's own recycling facilities, namely by
opening of two recycling lead facilities in Romania and Serbia, and by acquiring production
facilities licensed for the separation of scrap batteries in Italy.
The share of own recycled lead that MONBAT AD buys from its subsidiaries, used
in the production for 2020, represents 86.32% of total lead consumption, and the share
of the recycled polypropylene (regranulate) from own production is nearly 99.12 %.
The share of own recycled lead, that MONBAT AD buys mainly from its subsidiaries,
used in the production for 2021, represents 88.68 % of total lead consumption, and the
share of the recycled polypropylene (regranulate) from own production is 99.17 %.
The share of own recycled lead, that MONBAT AD buys mainly from its subsidiaries,
used in the production for 2022, represents 97.98% of total lead consumption, and the
share of the recycled polypropylene (regranulate) from own production is 99.80%.
By creating its own recycling facilities, the management of the company strives to
reduce the risk of change in the price of major raw materials, as well as to generate more
added value when selling lead-acid batteries. On the other hand, the military conflict
between Russia and Ukraine also affects the price of lead internationally. The Russian
Federation is responsible for about 5% of the world's lead production, which is likely to
lead to some increase in prices.
The movement of the lead price in 2022 is shown in the following diagram:
* Average lead price for the period 01.01.2022 – 31.12.2022 is – 2 153.33 USD/MT
As of 31.12.2022 lead represents approximately 61.07 % from the cost structure
per single battery unit.
The production is dependent on the price of electricity and natural gas, which are
currently state-regulated.
Bulgarian energy sector is of key importance for the future development and
sustainability of the economy in the country and for Monbat as well. State energy policy
in the sector is implemented through the National Assembly and the Council of Ministers,
according to Article 3 of the Energy Act (EA).
The main risk in the sector is the country's dependence on imported natural gas
and important energy resources for this sector. The main objectives in the sector are to

7
achieve high-tech, secure and reliable energy system that makes maximum use of the
resources available in Bulgaria and protects Bulgarian consumers as much as possible.
The rising trends in the prices of electricity (excluding the effect of the state
subsidy) and natural gas have an increasing impact on the formation of the cost price, as
their relative weight in the production cost increases - up to 8.2% of the cost price of the
final product is determined by the cost of electricity and up to 2% by the cost of natural
gas.
MARKETS AND SALES
As a result of its marketing and distribution strategy MONBAT AD has a good market
diversification, with sales in more than 70 countries in 2022. Major markets include
countries like Germany, France, Spain and Poland. With its well- developed distributor’s
network Monbat generates sales from all the major markets in the EU and the Middle East.
Starter batteries are sold mainly through automotive retailers and repair shops. Stationary
batteries are sold directly to telecom companies and other entities.
The company grants deferred payment terms for the domestic market up to 30
days and for the foreign market – up to 90 days. In case of deferred payments, a significant
part of the sales is being insured by BAEZ AD (the Bulgarian Export Insurance Agency) or
COFACE.
A direct competitor on the Bulgarian market is Elhim-Iskra AD. As of 31.12.2022
MONBAT AD owns 97.80% of the equity capital of the third largest producer in the lead-
acid batteries business in Bulgaria – START AD, Dobrich.
As of 31.12.2022 MONBAT AD has reported revenues from contracts with
customers on a stand-alone basis of BGN 327,007 thousand, which represents a decrease
by 6.84% compared to sales revenues generated in 2021 of BGN 351 010 thousand.
Sales revenues on the domestic market in 2022 are BGN 46 092 thousand and
represent 14.10% of total sales. Realized revenues from sales on the domestic market
include technological waste and scrap sold to Monbat Recycling Bulgaria, as well as
materials, goods and services resold to other related parties. Realized revenues abroad,
including intra-community supplies, amount to BGN 280,915 thousand and represent
85.90% of the company's net sales revenues.
MONBAT AD is geographically diversified with a market presence in 77 countries.
Regarding the military conflict between Ukraine and Russia, it should be considered that
sales to Russia represent 2.61% of the total exports of Monbat AD for 2022, those to
Ukraine 2.50% (2021: Russia - 6.24%, Ukraine and Belarus - 1%).

8
Тable No 2
2022 2021
Country Export % Export %
('000 EUR) ('000 EUR)
OTHER 32 541 22,66 40 343 26,34
GERMANY 15 583 10,85 16 624 10,85
FRANCE 11 220 7,81 11 160 7,29
SPAIN 9 763 6,80 8 711 5,69
POLAND 8 547 5,95 7 369 4,81
SAUDI ARABIA 7 854 5,47 9 830 6,42
ROMANIA 7 844 5,46 6 838 4,46
NETHERLANDS 7 405 5,16 9 142 5,97
GREAT BRITAIN 6 299 4,39 6 715 4,38
ITALY 6 059 4,22 7 015 4,58
SWEDEN 3 970 2,76 1 315 0,86
RUSSIA 3 750 2,61 9 788 6,39
UKRAINE 3 592 2,50 1 467 0,96
SOUTH AFRICA 3 370 2,35 604 0,39
SERBIA 3 101 2,16 4 130 2,70
SWITZERLAND 2 766 1,93 990 0,65
BELGIUM 2 711 1,89 3 013 1,97
HUNGARY 2 608 1,82 1 667 1,09
ALGERIA 2 363 1,65 2 599 1,70
IRELAND 2 283 1,59 3 840 2,51
TOTAL 143 629 100 153 160 100
In 2022 the major market of MONBAT AD was GERMANY. The entity has generated
revenues of EUR 15 583 thousand, which represents 10.85% from export sales on a stand-
alone basis.
QUALITY
ISO 9001
Monbat AD continuously strives to improve the way it operates in all possible areas:
developing innovative products and technologies; increasing market share; managing risk
more effectively; improving customer satisfaction.
The established quality management system provides a reliable framework which is
capable of monitoring and improving performance in the area of activity.
AQAP 2110
Allied Quality Assurance Publications certificate verifies that Monbat AD operates in
compliance with regulations for the development, construction and production, as well as
for the quality inspection and final testing of military goods.

9
IATF 16949:2016
This technical specification certification incorporates existing US, German, French and
Italian automotive quality system standards within the global automotive industry.
It specifies the quality system requirements for the design/development, production,
installation and servicing of automotive-related products.
ISO 14001
The internationally accepted standard sets out that Monbat AD puts in place an effective
Environmental Management System.
The standard was established to address the delicate balance between maintaining
efficiency and reducing the impact on the environment by committing the entire
organisation to achieve both objectives.
ISO 45001
Developed by leading trade and certification bodies based on international regulations,
and aiming to address the omission whereby no common international policy exists, this
certificate verifies that Monbat complies with the internationally recognized assessment
specification for occupational health and safety management systems.
OPERATING RESULTS
The war in Ukraine, which began in February 2022, has had a significant impact on
the global economy in various ways, mainly related to energy prices and volatility of global
markets, including the exchange rates of major world currencies.
Compared to the record year of 2021, 2022 saw a reduced demand for batteries
(also reflected as a reduction in revenue from contracts with customers), mainly due to
unfavorable economic conditions, especially in Europe, as a result of the military conflict
between Ukraine and Russia, and related inflationary trends, including all energy resources
and unfavorable weather conditions in Europe, where the majority of the Company’s
customers are located (milder winter).
As a result of the change in the macroeconomic environment, MONBAT AD reports
a decrease in the sales volume of batteries in 2022 (Table No13) and a decrease in
normalized EBITDA (before impairment) on a stand-alone basis for 2022.
Profit before taxes of MONBAT on an individual basis for 2022 is BGN 1 382
thousand, which represents an increase of 190.95 % compared to the Company’s profit
before taxes for 2021 (BGN 475 thousand).
Net profit of MONBAT AD for 2022 is BGN 1 219 thousand - an increase of 1.92%
compared to the company's net profit for 2021 of BGN 1 196 thousand.

10
Table No 3
FINANCIAL INDICATORS 31.12.2022 31.12.2021 31.12.2020
Normalized EBITDA (before impairments) 15 694 21 166 22 181
EBIT 4 177 -6 534 11 960
REVENUE FROM CONTRACTS WITH
CUSTOMERS 327 007 351 010 294 664
*Data presented in BGN ‘000
Table No 4
(BGN '000)
SHAREHOLDERS' EQUITY 2022 % 2021 % 2020
Equity
Share capital 38 973 -0,07% 39 000 0,00% 39 000
Premium reserve 28 498 -0,39% 28 611 0,00% 28 611
General reserves 63 866 0,00% 63 866 0,00% 63 866
Retained earnings 27 235 -13,58% 31 516 -15,55% 37 320
TOTAL SHAREHOLDERS'
EQUITY 158 572 -2,71% 162 993 -3,44% 168 797
Re ve n ue f ro m co n tr ac t s w it h c u st o me r s
Table No 5
(BGN '000)
REVENUES 2022 % 2021
Revenues from sales of products 235 499 -12,61% 269 473
Revenue from the sale of goods 85 409 10,64% 77 192
Revenues from sales of materials 3 108 15,84% 2 683
Revenues from the provision of services 2 988 95,68% 1 527
Other sales revenue 3 -97,78% 135
Total revenue from contracts with
customers 327 007 -6,84% 351 010

11
O pe r a ti n g ex p en d i tu re s by c a te g or y
Table No 6
(BGN '000)
EXPENSES 2022 % 2021
Materials 204 965 -5,33% 216 514
External services 22 840 1,20% 22 570
Staff costs 17 231 -3,09% 17 780
Depreciation and impairment of non - financial
assets 9 787 -62,66% 26 213
Changes in stock of finished goods and work in
progress -5 487 -413,36% 1 751
Cost of goods sold and other current assets 77 870 11,46% 69 865
Other expenses 3 727 -15,77% 4 425
Total 330 933 -7,85% 359 118
Ma i n s u pp l i er s of m ate r i a l s
Table No 7
Supplier’s name 2022 2021 2020
Monbat Recycling EAD 33.67% 34.53% 41.52%
MONBAT PLC D.O.O 22.62% 17.87% 18.90%
MONBAT RECYCLING S.R.L 22.25% 20.35% <10%
AKUMSAN PLASTIK <10% <10% <10%
MICROPOROUS GmbH <10% <10% <10%
MONPLAST ООD <10% <10% <10%
The main supplier of MONBAT AD for the materials necessary for the production of
batteries is Monbat Recycling EAD, fully owned subsidiary of MONBAT AD.
Due to the diversification of the client portfolio, MONBAT AD has no main customers that
would account for 10 percent or more of total revenues.
The remuneration for the independent financial audit, carried out by Grant Thornton OOD,
Bulgaria, amounts to BGN 197 thousand. No tax consultations or other services unrelated
to the audit were provided during the year. This disclosure is in compliance with the
requirements of Art. 30 of the Accounting Act.
III. ANALYSIS OF FINANCIAL AND NON-FINANCIAL KEYINDICATORS ON THE
RESULTS FROM THE ACTIVITIES RELATED TO THE BUSINESS INCLUDING
INFORMATION ON ISSUES RELATED TO ECOLOGY AND HUMAN
RESOURCES. IN THE PREPARATION OF THE MANAGEMENT REPORT THERE

12
MIGHT BE REFERENCE TO THE AMOUNT OF EXPENDITURE INLCLUDED IN
THE STAND ALONE FINANCAIL STATEMENT.
1. FINANCIAL RATIOS
LIQUIDITY
Table No 8
LIQUIDITY RATIOS 31.12.2022 31.12.2021 31.12.2020
Current liquidity ratio 1.52/1 1.56/1 1.59/1
Quick liquidity ratio 1.28/1 1.28/1 1.25/1
Cash liquidity ratio 0.02/1 0.04/1 0.16/1
Immediate liquidity ratio 0.02/1 0.04/1 0.16/1
The trend of the liquidity ratio over time provides valuable information. Liabilities
to creditors of Monbat AD are being paid off in cash rather than using inventories or
equipment. i.e., these factors describe the company's ability to pay off its debts on time.
CURRENT LIQUDITY RATIO
The current liquidity ratio is one of the earliest formulated ratios and is universal.
The current liquidity ratio represents the ratio of current assets to current liabilities. It
could be expected that current assets will be at least equal to current liabilities, whereas
it is normal for them to be even slightly higher than current liabilities. Therefore, optimal
values of this ratio are over 1-1.5. However, some entities operate with ratios less than 1.
For 2022 the current ratio is 1.52 and decreases in comparison with the ratio for
2021 – 1.56.
The reported decrease in the value of this ratio for 2022 compared to 2021 is due
to an increase in the amount of current assets of the company by 21.78% and an increase
in the value of current liabilities by 24.78%.

13
QUICK LIQUIDITY RATIO
The quick liquidity ratio represents the ratio of current assets minus inventories to
current liabilities. Its traditional rate, which sets the company as stable, is between 1 and
1.5 but much higher rates would indicate that company’s assets are not being used in the
best way.
The company's 2022 Quick Liquidity Ratio is 1.28, which shows that the value is
maintained compared to 2021's value of 1.28. In 2022, compared to 2021, current assets
increased by 21.78%, inventories increased by 9.86%, while current liabilities increased
by 24.78%.
IMMEDIATE LIQUIDITY RATIO
The value of the immediate liquidity ratio of MONBAT AD for 2022 is 0.02, which is
a decrease compared to its value from 2021. The reason for the decrease is the decrease
in cash by 40.36%, the decrease in financial assets by 92.13% and an increase in current
liabilities by 24.78%.
CASH LIQUIDITY RATIO
The cash liquidity ratio is calculated as the ratio between cash and short-term
liabilities and indicates company’s ability to meet its short -term liabilities with its available
cash.
The cash ratio of the company for 2022 is 0.02. As of 31.12.2022 the cash of the
company decreased by 40.36% compared to 2021 with an increase in current liabilities by
24.78%.
CAPITAL RESOURCES
The financial autonomy and financial leverage indicators show the ratio between
own funds and borrowed funds in the capital structure of the company. High rates of the
financial autonomy indicator, respectively, the low rates of the financial leverage indicator,
provide guarantee both for the investors /creditors/ and for the owners themselves, for
the ability of the company to regularly pay its long-term liabilities.
The effect of using borrowed funds (debt) by the company with a view to increase
the final total net income from the funds involved in the activity (equity and borrowings)
is called financial leverage. The benefit of using financial leverage appears when the
company benefits from the investment of borrowed funds more than the expenses
(interest) incurred for their attraction. When a company achieves higher profitability by
using borrowed funds in its capital structure than the expenses for their borrowing are,
leverage is justified and should be considered in a positive way (with the remark that the
rate of leverage does not significantly influence other financial indicators of the company
in a negative way).

14
FINANCIAL LEVERAGE RATIOS
Table No 9
LEVERAGE RATIOS 31.12.2022 31.12.2021 31.12.2020
Debt to Equity Ratio 1,32 1,16 1,08
Debt to Assets Ratio 0,57 0,54 0,52
Equity to Debt Ratio 0,76 0,86 0,93
DEBT TO EQUITY RATIO
The indicators for the share of capital, obtained through loans, show what part of
the capital is borrowed. The higher the share of long- term debt compared to shareholders’
equity is, the higher will be the likelihood of failure in the payment of fixed liabilities.
The value of the debt to equity ratio of MONBAT AD for 2022 is 1.32 which is an
increase compared to the rate reported in 2021. In 2022, the value of debt increased by
10.41%, while the value of the Company's equity decreased by 2.71%.
EQUITY TO DEBT RATIO
The equity to debt ratio provides information regarding what percentage of total
liabilities is the company ’s equity.
As of 31.12.2022 the value of the equity to debt ratio of the company is 0.76
compared to its value, reported in 2021 of 0.86. During the reported financial period, the
value of the ratio decreased compared to the previous financial year, which is due to a
decrease in equity by 2.71%, and a decrease in the company’s equity by 10.41% .
DEBT TO TOTAL ASSETS RATIO
This rate shows what part of the assets is being financed through debt.
As of 31.12.2022 the value of the Debt/Assets ratio is higher than the value in
2021. The increase is due to an increase in the company's debt by 10.41% and an increase
in the amount of the company's assets by 4.35%.

15
PROFITABILITY RATIOS
TableNo 10
PROFITABILITY RATIOS 31.12.2022 31.12.2021 31.12.2020
Profitability of capital 0.0313 0.0307 0.14
Return on equity (ROE) 0.008 0.007 0.03
Return on assets (ROA) 0.0033 0.0034 0.015
RETURN ON EQUITY (ROE)
The Return on Equity ratio is calculated by relating the net profit as a percentage
of the company's shareholders’ equity. This ratio measures the return to shareholders in
terms of their absolute investments. The ratio reports stable high rates for the last three
financial periods due to the generated profit in these years.
For 2022, the value of the Return on Equity ratio is 0.008 and shows a slight
increase compared to its rate of 0.007 in 2021. The increase is due to an increase in the
company's net profit by 1.92% while shareholders’ equity decreases by 2.71%.
RETURN ON ASSETS (ROA)
The Return on Assets indicator shows the effectiveness of using the total assets in
the company. The decrease in the value of the Return on Assets indicator in 2022
compared to 2021 is due to an increase in the company’s net profit of 1,92% and an
increase in assets of 4.35%.
PROFITABILITY OF CAPITAL
As of 31.12.2022 the profitability of capital ratio is 0.0313 and increases compared
to 2021. In 2022 compared to 2021, the net profit reported by the company increased by
1.92% while equity decreased by 0.07% compared.

16
KEY RATIOS
In the following table a summarized information regarding key financial ratios of
Monbat AD for the last two financial years is presented:
Table No 11
Indicators 31.12.2022 31.12.2021
Revenue from contracts with customers 327 007 351 010
Total revenue 338 919 366 385
Operating costs 330 933 359 094
Total costs 337 537 365 910
Normalized Earnings/Loss Before Interest, Taxes and
Depreciation (EBITDA) 15 694 21 166
Profit/Loss from operating activities 4 177 -6 534
Net profit/loss 1 219 1 196
Non-current assets 143 741 168 544
Current assets 224 451 184 305
Equity 158 572 162 993
Non-current liabilities 62 163 71 680
Current liabilities 147 457 118 176
Working capital 38 127 66 129
Cash and cash equivalents 2 527 4 237
Total debt 209 620 189 856
Net debt 134 447 130 036
Interest expenses 5 812 4 797
Inventory 36 043 32 808
Short-term receivables 147 014 147 260
Expenses for materials 204 965 216 514
(Operating profit/loss)/Sales revenue 0,013 -0,035
(Net profit/loss)/Sales revenue 0,004 0,003
Raised capital/Equity 1,322 1,165
Net Debt/Normalized EBITDA 8,567 6,144
Normalized EBITDA/Revenue 0,048 0,060
Revenue efficiency 0,996 0,999
Cost effectiveness 1,004 1,001
Profit/loss per share - Earning per share 0,031 0,031
P/E * 0,03 0,03
P/BV * 1,14 1,41
P/S * 8,39 9,01
Financial leverage ratio * 0,24 0,41
Profitability of sales * 0,37% 0,34%
ROFA * 0,67% 0,65%

17
The P/E, P/BV & P/S indicators are calculated based on the average share price of MONBAT
AD as of 31.12.2022, 31.12.2021.
* Financial leverage ratio – working capital / shareholders’ equity;
*ROFA (return on non-current assets) – net profit/non-current assets;
*P/S – (net sales revenues / registered capital) х100
*P/BV – market capitalization / shareholders' equity
*P/E – net profit / registered capital
*Profitability of sales - net profit / net sales x100
IV. MAJOR RISKS WHICH THE ISSUER FACES
SYSTEMATIC RISKS
Systematic risks are related to the market and the macro environment in which the
entity operates, therefore they cannot be managed or controlled by the company's
management. The following are examples of systematic risks: political risk,
macroeconomic risk, inflation risk, currency risk, interest rate risk, tax risk.
Risk type Description
POLITICAL RISK Political risk is the probability of changing the government or a sharp change
in the direction of its policy, the risk of occurrence of domestic political shocks
and adverse changes to the European and/or national legislation, which results
in a way that the environment for operation of the domestic business entities
would suffer an adverse change and investors would accrue losses.
Companies doing business internationally rely on the stability of the business
environment abroad. Profits and investments can be vulnerable to adverse
developments in this environment. International political risks for Bulgaria, on
one hand, are related to the commitments undertaken for major structural
reforms in the country, in its capacity as a full member of EU, improving social
stability, limiting inefficiency costs, and on the other hand, major
destabilization of the Middle East states, intensifying threats of terrorist
attacks in Europe, waves of refugees and instability of key countries in direct
proximity to Bulgaria.
Bulgaria, as all other EU member states in this region, continues to be severely
affected by the general European problems with the intensive wave of refugees
coming in from the Middle East.
Other factors also affecting this risk are possible legislative changes, in
particular changes referring to the business and investment climate in the
country.
The main political risks for Bulgaria at the date of this document concern:
- the impossibility to elect a functioning Bulgarian government - the
implementation of the planned major energy and infrastructure projects
largely depends on this, as they are directly dependent on the support of the
central government. The observed political uncertainty leads the caretaker
government in place at the date of this document to concentrate on pursuing
policies/measures that do not change the quality of life of the Bulgarian
population in the long term, but lead to high costs and limit the growth of the
economy in the longer term. The financial framework of the state adopted by
the 47th National Assembly increased social payments, again missing the
opportunity to carry out reforms in administration, education and health.
- the slow recovery from the economic crisis, also influenced by geopolitical
events. In this regard, attention should be paid to actual growth - whether it
will meet the government's forecasts; the expected increase in exports; the

18
government's ability to take favourable loans on international markets; and
the ongoing efforts to moderate the recovery in domestic consumption.
- the possibility to implement reforms in structural determining sectors in the
country in order to optimise the process of efficient absorption of EU funds.
Attention should be paid to reforms in the non-efficient pension and social
security system, the health system and education; administrative coordination
and rules in project financing, including improving the process of allocating,
coordinating and managing EU funds.
- the fight against corruption and organised domestic crime - important
aspects that reflect on the confidence of European partners and foreign
investors.
- the assessment by international rating agencies of the stability of the
country's public finances.
- the ability of the central authorities to pursue a conservative and disciplined
fiscal policy that maintains benchmark levels of budget deficit and stability in
public finances.
OVERALL
MACROECONOM
IC RISK
According to data from the National Statistical Institute as of 30.12.2022, the
overall business climate indicator increased by 1.0 point compared to
November. An increase in the indicator was observed in industry and retail
trade, in construction maintained its level, and in the service sector a decrease
was registered.
Business climate – total
Source: NIS
The composite indicator "business climate in industry" in December 2022 rises
by 2.5 points as a result of more positive expectations of industrial
entrepreneurs about the business situation of enterprises in the next six
months. According to them, there has been some increase in manufacturing
order supply over the past month (see Figure 3 in the Annex), but this has not
been accompanied by increased expectations for manufacturing activity over
the next three months. The most serious difficulties for business development
continue to be the uncertain economic environment and labour shortages,
cited by 61.1 and 28.8 per cent of enterprises respectively. In relation to
selling prices in industry, managers forecast an increase in the next three
months.
In December 2022, the composite indicator "business climate in construction"
maintained its level of the previous month. Construction contractors'
expectations for both the business climate over the next six months and their
operations over the next three months are reserved. The uncertain economic
environment, material prices and labour shortages remain the main factors
hampering activity, with a reduction in the negative impact of the first two
factors compared to November. According to the latest survey, the proportion
of managers who continue to expect construction selling prices to rise over the
next three months is 35.6%.

19
In December 2022, the composite indicator "business climate in the services
sector" declined by 1.1 points as a result of managers' less favourable
assessments and expectations about the business situation of enterprises.
Their views on current and expected demand for services are also more
moderate. The uncertain economic environment remains the main constraint
on business activity, followed by industry competition and labour shortages.
Regarding selling prices in the service sector, 22.2% of managers expect them
to increase in the next three months.
According to the December 2022 macroeconomic forecasts of the Eurosystem
experts, the average annual real GDP growth in the euro area is expected to
slow down significantly - from 3.4% in 2022 to 0.5% in 2023, then to
accelerate to 1.9% in 2024 and to 1.8% in 2025.
Compared with the September 2022 forecasts, GDP growth projections have
been revised up by 0.3 percentage points for 2022 due to the unexpected
positive data in the summer and down by 0.4 percentage points for 2023,
while remaining unchanged for 2024.
INTEREST RISK Interest risk is related to possible contingent negative changes in interest rate
levels, implemented by the financial institutions of the Republic of Bulgaria.
At its meeting in December 2022 the Governing Council of the European Central
Bank decided to raise interest rates in December 2022 and expects to keep
raising them significantly because inflation remains too high and is forecast to
stay above target for an extended period. According to Eurostat's preliminary
estimate, inflation was 10.0% in November and is slightly lower than the 10.6%
recorded in October. The decline is mainly the result of lower energy price
inflation. Food inflation and underlying price pressures in the economy have
intensified and will continue for some time.
The Governing Council of the ECB has decided to raise the three key ECB
interest rates 50 basis points and, given the substantially upwardly revised
inflation outlook, expects to raise them further. According to this decision, the
interest rate on the main refinancing operations and the interest rates on the
marginal lending facility and the deposit facility were increased to 2.50%,
2.75% and 2.00% respectively, effective from 21 December 2022. The Board
judged that interest rates would need to rise substantially at a gradual rate to
reach sufficiently restrictive levels to ensure a timely return of inflation to the
medium-term target of 2%.
Sourse:BNB
INFLATION RISK Inflation risk is an overall increase in prices, where money is devaluated and
there is a probability of households and companies to accrue losses.
According to the NSI, the consumer price index for January 2022 compared to
December 2021 is 101.5%, i.e. monthly inflation is 1.5%. Annual inflation for
January 2022 compared to January 2021 is 9.1%. The average annual inflation

20
for the period February 2021 to January 2022 compared to the period February
2020 to January 2021 is 4.1%.
According to preliminary data of the NSI, the harmonised consumer price index
for January 2022 compared to December 2021 is 101.2%, i.e. the monthly
inflation is 1.2%. Annual inflation for January 2022 compared to January 2021
is 7.7%. The average annual inflation rate for February 2021-January 2022
compared to February 2020-January 2021 is 3.5%.
The consumer price index for February 2022 compared to January 2022 is
101.4%, i.e., monthly inflation is 1.4%. Year-to-date inflation (February 2022
versus December 2021) is 2.9% and annual inflation for February 2022 versus
February 2021 is 10.0%. Annual average inflation for the period March 2021
to February 2022 compared to the period March 2020 to February 2021 is
5.0%.
The harmonised Index of Consumer Prices for February 2022 compared to
January 2022 is 101.2%, i.e. monthly inflation is 1.2%. Year-to-date inflation
(February 2022 versus December 2021) is 2.4% and annual inflation for
February 2022 versus February 2021 is 8.4%. Annual average inflation for the
period March 2021 to February 2022 compared to the period March 2020 to
February 2021 is 4.2%.
The consumer price index for March 2022 compared to February 2022 is 102.2
%, i.e monthly inflation is - 2.2%. Inflation since the beginning of the year
(March 2022 compared to December 2021) is 5.2%, and annual inflation for
March 2022 compared to March 2020 is 12,4%. The average annual inflation
for the period April 2021 - March 2022 compared to the period April 2020 -
March 2021 is 6.0%.
The harmonized index of consumer prices for March 2022 compared to
February 2022 is 102.1%, i.e monthly inflation is 2.1%. Inflation since the
beginning of the year (March 2022 compared to December 2021 is 4,5%, and
annual inflation for March 2022 compared to March 2021 is 10,5%. The
average annual inflation for the period April 2021 - March 2022 compared to
the period April 2020 - March 2021 is 5.0%.
The consumer price index for April 2022 compared to March 2022 is 102.5%,
i.e., the monthly inflation rate is 2.5%. Year-to-date inflation (April 2022
versus December 2021) is 7.8% and annual inflation for April 2022 compared
to April 2021 is 14.4%. The average annual inflation for May 2021-April 2022
compared to May 2020-April 2021 is 7.0%.
The harmonised index of consumer prices for April 2022 compared to March
2022 is 102.1%, i.e. monthly inflation is 2.1%. Year-to-date inflation (April
2022 versus December 2021) is 6.8% and annual inflation for April 2022
compared to April 2021 is 12.1%. Annual average inflation for the period May
2021 to April 2022 compared to the period May 2020 to April 2021 is 5.9%.
The consumer price index for May 2022 compared to April 2022 is 101.2%,
i.e., monthly inflation is 1.2%. Year-to-date inflation (May 2022 versus
December 2021) is 9.1% and annual inflation for May 2022 compared to May
2021 is 15.6%. Annual average inflation for the period June 2021 to May 2022
compared to the period June 2020 to May 2021 is 8.1%.
The harmonized index of consumer prices for May 2022 compared to April
2022 is 101.3%, i.e., monthly inflation is 1.3%. Year-to-date inflation (May
2022 versus December 2021) is 8.2% and annual inflation for May 2022
compared to May 2021 is 13.4%. The average annual inflation for the period
June 2021 to May 2022 compared to the period June 2020 to May 2021 is
6.8%.

21
The consumer price index for June 2022 compared to May 2022 is 100.9%,
i.e. the monthly inflation rate is 0.9%. Year-to-date inflation (June 2022
versus December 2021) is 10.1% and annual inflation for June 2022 versus
June 2021 is 16.9%. The average annual inflation rate for July 2021 to June
2022 compared to July 2020 to June 2021 is 9.3%.
The harmonized consumer price index for June 2022 versus May 2022 is
101.2%, i.e., monthly inflation is 1.2%. Year-to-date inflation (June 2022
versus December 2021) is 9.4% and annual inflation for June 2022 versus
June 2021 is 14.8%. The average annual inflation rate for July 2021 to June
2022 compared to July 2020 to June 2021 is 7.8%.
In July 2022, the monthly inflation was 1.1% compared to the previous month,
and the annual inflation for July 2022 compared to July 2021 was 17.3%. Year-
to-date inflation (July 2022 versus December 2021) is 11.3%, and average
annual inflation for the period August 2021 - July 2022 versus August 2020 -
July 2021 is 10.5%.
According to the HICP, in July 2022 the monthly inflation was 0.8% compared
to the previous month, and the annual inflation for July 2022 compared to July
2021 was 14.9%. Year-to-date inflation (July 2022 versus December 2021) is
10.3%, and average annual inflation for August 2021 - July 2022 versus
August 2020 - July 2021 is 8.9%.
In August 2022, the monthly inflation was 1.2% compared to the previous
month, and the annual inflation for August 2022 compared to August 2021
was 17.7%. Year-to-date inflation (August 2022 versus December 2021) is
12.6%, and average annual inflation for the period September 2021 - August
2022 versus September 2020 - August 2021 is 11.7%.
According to HIPC, in August 2022 monthly inflation was 0.8% compared to
the previous month, and annual inflation for August 2022 compared to August
2021 was 15.0%. Year-to-date inflation (August 2022 versus December 2021)
is 11.2%, and average annual inflation for September 2021 - August 2022
versus September 2020 - August 2021 is 9.9%.
In September 2022, monthly inflation was 1.2% from the previous month and
annual inflation for September 2022 compared to September 2021 was
18.7%. Year-to-date inflation (September 2022 versus December 2021) is
14.0% and the average annual inflation rate for October 2021 to September
2022 versus October 2020 to September 2021 is 12.8%.
According to the September 2022 HICP, the monthly inflation rate was 0.7%
compared to the previous month and the annual inflation rate for September
2022 compared to September 2021 was 15.6%. Year-to-date inflation
(September 2022 versus December 2021) is 12.0% and the average annual
inflation rate for October 2021 to September 2022 versus October 2020 to
September 2021 is 10.9%.
In October 2022, the monthly inflation rate was 0.9% from the previous month
and the annual inflation rate for October 2022 compared to October 2021 was
17.6%. Year-to-date inflation (October 2022 versus December 2021) is 15.0%
and the average annual inflation rate for November 2021 to October 2022
versus November 2020 to October 2021 is 13.8%.
According to the October 2022 HICP, the monthly inflation rate was 0.6% from
the previous month and the annual inflation rate for October 2022 compared
to October 2021 was 14.8%. Year-to-date inflation (October 2022 versus
December 2021) is 12.7% and the average annual inflation rate for November
2021 to October 2022 versus November 2020 to October 2021 is 11.7%.

22
In November 2022, the monthly inflation rate was 0.8% compared to the
previous month, and the annual inflation rate for November 2022 compared
to November 2021 was 16.9%. Year-to-date inflation (November 2022 versus
December 2021) is 15.8% and the average annual inflation rate for December
2021 to November 2022 versus December 2020 to November 2021 is 14.6%.
According to the November 2022 HICP, the monthly inflation rate was 0.6%
from the previous month and the annual inflation rate for November 2022
compared to November 2021 was 14.3%. Year-to-date inflation (November
2022 versus December 2021) is 13.4% and the average annual inflation rate
for December 2021 to November 2022 versus December 2020 to November
2021 is 12.4%.
In December 2022, the monthly inflation rate was 0.9% compared to the
previous month, and the annual inflation rate for December 2022 compared
to December 2021 was 16.9%. Annual average inflation for January-December
2022 compared to January-December 2021 is 15.3%.
According to the HICP, December 2022 monthly inflation is 0.8% from the
previous month and annual inflation for December 2022 compared to
December 2021 is 14.3%. The annual average inflation rate for January-
December 2022 compared to January-December 2021 is 13.0%.
*Source: NIS
CURRENCY RISK The currency risk exposure is the dependence on and the effects of the
currency exchange rates changes. The systematic currency risk is the
probability of possible change in the currency regime of the Country (Currency
Board), which would result either in devaluation of the Bulgarian lev (BGN) or
in appreciation of the BGN against foreign currencies.
Currency risk will have impact on companies with market shares, which are
completed in a currency other than BGN and EUR. Due to the laws in force in
the country, the Bulgarian lev is fixed to the Euro at an exchange rate of EUR
1 = BGN 1.95583, and the Bulgarian National Bank has to maintain a level of
Bulgarian leva in turnover equal to the currency reserves of the bank, the risk
of devaluation of the BGN compared to the European currency is minimum,
and for the most part consists in a possible elimination of the currency board
in the country. At this stage, this appears to be very unlikely because the
Currency Board is expected to be removed at the time of accepting the Euro
as official legal tender in Bulgaria.
At its meeting on June 30, 2021, the Coordination Council for preparation of
the Republic of Bulgaria for euro area membership adopted a draft National
Plan for the introduction of the euro in the Republic of Bulgaria. Bulgaria's
commitment to adopt the single European currency is reaffirmed in the Treaty
on the Accession of the Republic of Bulgaria and Romania to the European

23
Union, after it was initially stated at the start of our country's EU membership
negotiations.
Preparations for Bulgaria's accession to the euro area are scheduled for
January 1, 2024. The introduction of the euro is planned without a transitional
period as the date of adoption of the euro will coincide with its introduction as
the official unit of payment. The conversion will be done by applying the
irrevocably fixed exchange rate between the euro and the lev. And after the
introduction of the euro within a month, the lev and the euro will be legal
tender at the same time. The National Plan for the Introduction of the Euro in
Bulgaria is the strategic document based on which the operational work for
the replacement of the lev with the euro will be implemented. The document
has been prepared and adopted within the deadline of 30 June 2021, set in
Decree No 103 of the Council of Ministers of 25 March 2021 amending and
supplementing Decree No 168 of the Council of Ministers of 2015 on the
establishment of a Coordination Council for the preparation of Republic of
Bulgaria for euroarea membership (SG, issue 52 of 2015).
On 11.11.2022 the Coordinating Council for the preparation of the Republic of
Bulgaria for euro area membership adopted the Communication Strategy for
information and publicity of Bulgaria's accession to the euro area. The adoption
of the Communication Strategy is an important step on the path of our
country's accession to the euro area and corresponds with the decision of the
National Assembly adopted on 27.10.2022, which obliges the Council of
Ministers, in coordination with the Bulgarian National Bank, to accelerate the
consultations and negotiations with the European institutions and to speed up
the technical preparations for the introduction of the euro in order to meet the
target date for the adoption of the euro of 1 January 2024. It is based on the
National Plan for the introduction of the euro in the Republic of Bulgaria
adopted by the Council of Ministers and describes the principles and tasks of
a comprehensive information and communication campaign; the responsible
institutions that will implement the different activities within the overall
campaign; the stages for the implementation of the activities; the target
groups; the channels for the dissemination of information, etc.
On 26.11.2022, the international rating agency S&P Global Ratings confirmed
Bulgaria's long-term and short-term foreign and local currency credit ratings
at 'BBB/A-2'. The rating outlook remains stable. The stable outlook balances
on the one hand Bulgaria's weaker near-term economic growth expectations
and increased domestic political uncertainty, and on the other hand the
country's low net government debt and low interest costs. According to S&P
Global Ratings, these developments provide Bulgaria with policy options and
make its public finances less sensitive to rapidly rising global interest rates.
Bulgaria is currently experiencing high inflation, which according to S&P Global
Ratings could pose a challenge to its eurozone membership from 2024.
According to BNB data from 30.12.2022, the gross external debt at the end of
December 2022 amounted to EUR 43,915.8 million (52.1% of GDP), which is
EUR 2,425.2 million (5.8%) more compared to with the end of December 2021
(41,490.6 million euros, 58.4% of GDP). At the end of December 2022, short-
term liabilities were EUR 8315.1 million (18.9% of gross debt, 9.9% of GDP)
and increased by EUR 1436 million (20.9%) compared to December 2021 (EUR
6879.1 million, 16.6 % of debt, 9.7% of GDP). Long-term liabilities amounted
to EUR 35,600.7 million (81.1% of gross debt, 42.3% of GDP), increasing by
EUR 989.2 million (2.9%) compared to the end of December 2021 (EUR
34,611.5 million, 83.4% of debt, 48.7% of GDP).

24
TAX RISK Preservation of the current taxation regime is of defining importance for the
financial result of the companies. There is no guarantee that the tax laws,
which are of direct consequence for the operation of the company, would not
be changed in a direction which would result in a significant overhead expense,
and respectively would have an adverse effect on the profit of the company.
The taxation system in Bulgaria is still undergoing the process of development
and consequently the existence of contradictory tax practices is a possibility.
THE IMPACT OF
EVENTS IN
UKRAINE AND
THE
CONSEQUENCES
OF COVID-19
In February 2022, following the military conflict between Russia and Ukraine,
European Union countries announced the introduction of sanctions packages
against the Russian Federation and a number of Russian banks, as well as
personal sanctions against a number of individuals and entities.
Due to rising geopolitical tensions, there has been a significant increase in
volatility in the securities and currency markets since February 2022, as well
as a significant depreciation of the rouble against the US dollar and the euro.
The sanctions are expected to have adverse effect on the activities of Russian
and related enterprises in various sectors of the economy.
Given the forecasts of a significant slowdown in the global economy due to
events in Ukraine, this is expected to lead to a reduction in consumption and
real incomes of the population. The massive disruption to supply chains that
has started since the beginning of the pandemic and has been exacerbated by
the Russian invasion has necessitated a rethinking of all logistics to shorten
distances in order to minimize future risk of disruption to production
processes.
Russia's invasion of Ukraine, combined with the subsequent introduction of
various sanctions by the US and the EU, has heightened geopolitical tensions
in Eastern Europe.
The escalation of the military actions and the intensification of sanctions on
fossil fuel imports from Russia have contributed to a rise in commodity prices
to levels not seen since the financial crisis. Higher prices for goods and services
could enter the real economy through lower consumption and investment, with
negative effects on growth. In addition, a drop in the supply of Russian goods
to the EU could cause shortages of agricultural products and raw materials,
affecting economic activity.
These developments could further increase inflationary pressures as higher
commodity prices have already contributed to significantly higher inflation
rates. In a context of already elevated inflation, this poses a challenge for the
monetary policy stance of central banks.
Following the introduction of a number of sanctions, EU market participants
that are heavily dependent on Russian fossil fuels are likely to face significant
risks to their competitiveness.
The post-Covid-19 recovery of economic and financial markets appears to
have stopped following Russia's invasion of Ukraine.
This event has caused global market participants to revise their growth
expectations for the economy.
Further increases in geopolitical tensions could further affect economic growth
by impacting consumer and business confidence, as well as leading to supply
and demand shocks.
After the recent serious attacks on infrastructure facilities both on the territory
of Ukraine and on the North Stream, there is a serious distance from ending
the conflict. At the same time, the supply of energy, metals, timber and grain,
where both belligerent countries are among the leading exporters, has been
severely hampered, leading to unexpectedly high inflation, both in the
Eurozone and in Bulgaria. Given the development of the war, the prospects
for an end to the conflict in the coming months are minimal, requiring

25
companies to take into account the aforementioned difficulties in international
trade in line with their operations.
On 01.04.2022, the State of Emergency was lifted and various payments
introduced by the Central Government as compensation to mitigate the
negative impact of suspension of business in relation to COVID-19 were
cancelled.
World Health Organization (WHO) Director-General Tedros Adhanom
Ghebreyesus said the world has never been in a better position to end the
COVID-19 pandemic. At the same time, he urged countries not to reduce their
efforts to fight the new coronavirus, which has so far caused the deaths of
more than six million people, Reuters reports. Reuters also notes that his
comment is the most optimistic from the UN health agency since it declared
the new coronavirus situation as a pandemic in March 2020. The virus has
caused powerful shocks to the global economy and overwhelmed health care
systems. According to WHO, deaths from COVID-19 in early September were
at the lowest level since March 2020.
On 13 December 2022, the Council of the European Union adopted the latest
recommendations on travel measures, according to which Member States
should not impose restrictions on travel on public health grounds. However,
the recommendations contain some precautionary measures in case of a
worsening epidemic situation or the emergence of a new variant of concern.
On 13 January 2023, The World Health Organization changed its guidelines for
coronavirus infected persons, recommending that they be isolated for 10 days
if they show symptoms and 5 days if they do not.
At the same time, in January 2023, the European Commission "strongly"
recommended that all member states require negative coronavirus tests from
citizens arriving from China. Shortly before that, the EC reported that an
"overwhelming" number of member states supported restrictions on arrivals
from the Asian country.
RISK OF
ELECTRICITY
PRICE
INCREASES
Rising electricity and energy prices, which have become mostly increased since
Russia’s invasion of Ukraine, have put pressure on European consumers, after
two years of coronavirus, production blockages and employment problems.
Wholesale natural gas prices have risen by almost 300% in the last year due
to unusually low inventories, increased demand from economies emerging
from the pandemic and minimum supplies from Russia. These processes are
inevitably leading to an increase in inflation, with the European economy
coming under pressure from the shrinking purchasing power of consumers.
Analysts estimate that household costs on energy will rise by 50% this year,
and that the aid from governments to protect the population from rising prices
will compensate for only about a quarter of this. The energy crisis could take
up to 1% of the gross domestic product, with the impact varying from country
to country, and government support could mitigate serious negative effects.
In the context of steadily rising energy prices, a business compensation
program has been adopted and implemented. The financial source for these
compensations is the revenues in the Security of the Electricity System Fund,
the state-owned energy companies under the umbrella of Bulgarian Energy
Holding as well as the state budget. A subsequent amendment to the program
in June 2022 provided for the continuation of support to all non-domestic
consumers, with the aim of reducing the negative effects of significant and
adverse fluctuations in electricity prices on the free market.

26
UNSYSTEMATIC RISKS
RISK OF PRICE CHANGES IN THE BASIC PRIME AND RAW MATERIALS
The main activity of MONBAT AD is the production of and trading with accumulator
and lead-acid batteries – starter batteries, stationary batteries for telecom application,
semi-traction batteries, specialized batteries – army power range and locomotive
batteries. The main materials used in the entity’s production process are lead and lead
alloys, polypropylene, polyethylene separator and sulfuric acid. Over the last three years
the cost of lead from the total cost structure per unit of battery is as follow: for 2020 –
76%, for 2021 – 70 % and for 2022 – 61%.
The risk of price change in the prime material – lead is being managed by means
of own recycling facilities and by monthly indexation of the sales prices of the batteries.
In 2022 the used lead produced by own recycling facilities is 98%.
DEPENDENCE OF MONBAT AD FROM DISTRIBUTORS, SUPPLIERS,
CUSTOMERS
There is no dependence of MONBAT AD from customers because the company’s
sales are made directly to customers but through the mediation of an extensive distribution
network in the country and abroad. Significant part of the sales with deferred payment in
the country and for export are being insured in the Bulgarian Export Insurance Agency
(BAEZ) and COFACE which mitigates the risk of non-payment.
MONBAT AD is an export-oriented company. The company exports most of its
products with the most important markets in 2022: Germany, France, Spain and Poland.
DEPENDENCE OF MONBAT AD FROM KEY PERSONNEL
The professional activities and efforts, qualifications, motivation and reputation of
the members of board of directors and the senior officials of MONBAT AD and entities within
the group are essential for achieving the strategic and investment objectives of the
Company. The leave or release of any member of boards of directors or key executive official
would negatively affect the smooth conduct of the company’s business activities in the short
term.
Nevertheless, the established management system and consistently applied
corporate policy for provision of incentives to motivate employees within the group,
guarantee to a certain extent the long-term participation of board of director members and
key management personnel in the activities of the entity.
RISK OF CHANGE IN THE DEMAND AND INTRODUCTION OF NEW TECHNOLOGIES
This risk is related to demographic, economic, technological changes or introduction
of new products which may affect the demand for company’s products over time. With
introduction of new technologies in the automotive industry (hybrid and electric cars),
consistent with environmental protection and reduction of the separate carbon dioxide
emissions to a minimum, the need for alternative energy sources such as new generation
lead-acid batteries grows. At the same time, the need for multifunctional products -
accumulator batteries - as a spare source for the photovoltaic power supply and lighting
systems also grows. These new generation products could negatively affect the demand
for an existing and approved product as a result of the fact that they are or at least they
are perceived by consumers as more effective, more refined, combining new features, as
well as due to the fact that they are more advertised.
Monbat AD has not yet been exposed to such a risk, but in the future could be
relatively exposed to such a risk since the principal products of the company are lead-acid
batteries for various applications: starter batteries, stationary batteries for

27
telecommunication application, semi-traction batteries, special batteries for military
application and locomotive batteries.
LIQUIDITY RISK
Liquidity risk consists of the likelihood that MONBAT AD is unable to pay its current
liabilities. The absolute liquidity ratio is calculated as the ratio of cash and short-term
liabilities and indicates company’s ability to meet its short -term liabilities with its available
cash.
The cash ratio of the company for 2022 is 0.02. As of 31.12.2022 the cash and
cash equivalents of the company decreased by 40.36% compared to 2021, while current
liabilities increased by 24.78%.
ECOLOGICAL RISK
The responsibility of MONBAT AD as the largest producer of accumulator batteries
in Bulgaria and a dynamically developing public company is also oriented towards
environment. Management of MONBAT AD considers the activities directed towards
pollution prevention or reduction aimed at achieving a maximum level of human health
and environmental protection as a major priority and a crucial factor in the long-term and
sustainable development. It is a company’s long -standing practice to provide clear and
accurate environmental information on its products, services and activities to customers,
suppliers, and the public.
A key objective of the Company's management is to align its activities with
European legislation regulating the integration of climate risks into value creation
mechanisms and the drive towards a more sustainable global economy. The Company's
management actively monitors the European regulatory framework introducing the
obligation for non-financial reporting and, where necessary, adopts internal rules detailing
the procedures and responsibilities of its members in the preparation of sustainability
reports.
FORCE MAJEURE
A few force majeure circumstances such as natural disasters, accidents, epidemics
or intentional acts, could cause substantial property damages that could lead to temporary
suspension and even cessation of the activities of the company. MONBAT AD has a full
property insurance of the production facilities and storages of materials and production
but in case of a continuous violation of the sequence of production activities, that fact
could hardly compensate the lost profits.
THE WAR IN UKRAINE
On February 24th, 2022, Russia has invaded Ukraine and the conflict quickly
escalated as the biggest war initiative since World War II. The conflict had a serious impact
on the international economy, mainly the fuel prices, the volatility of the world markets
and currency exchange rates. The EU and other countries outside of EU has issued
sanctions and restricted their trade partnerships with Russian and Belarusian individuals
and companies.
Monbat AD does not own or control investments, subsidiaries or other assets in
Russia, Belarus or Ukraine, but the Company has customers based in these countries.
To address the aforementioned war crisis and to limit its negative impact on 2022 results,
the Company has undertaken the following measures:
Risk assessment
• In 2021 there was increased demand for car batteries, mainly due to the
interrupted supply chains during the early stages of the Covid-19 pandemic.

28
Compared to the record year of 2021, 2022 saw a reduced demand for batteries
(also reflected as a reduction in revenue from contracts with customers), mainly
due to unfavourable economic conditions, especially in Europe, as a result of the
military conflict between Ukraine and Russia, and related inflationary trends,
including all energy resources and unfavourable weather conditions in Europe,
where the majority of the Company’s customers are located (milder winter).
• The sales to Russian clients represent 2.6% of the total sales of the Company for
2022. Sales to Ukrainian customers are 2.5% of total sales (2021: Russia – 6.2%,
Ukraine and Belarus – around 1%).
• With regard to the supply chain, the Company is not directly dependent on Russian,
Ukrainian or Belarusian suppliers and has not experienced difficulties or
interruptions in the supply from Russian or Ukrainian counterparties, that have led
to interruptions in the production process.
• Due to the worldwide inflation and the market volatility, the average price of lead
on the London Metal Exchange was 2 049 EUR/MT (2021: 1 866 EUR/MT). Monbat
AD addresses the volatility and dependence of the price lead price by applying
standard indexation of the selling prices of its products to all counterparties.
• The Company’s main customers have not experienced financial difficulties directly
related to the pandemic or the military conflict in Ukraine. The collectability of trade
receivables at 31 December 2022 has been assessed as good.
• In order to ensure the collectability of its receivables from Ukrainian counterparties,
for which trade receivables insurance is not available, the Company adopted a
policy of 100% pre-shipment advances on all export sales to Ukraine, following the
start of the war conflict. Although there have been no significant delays in the
collection of trade receivables at the end of 2022 and 2021, the activities of several
specific customers in Russia and Ukraine, where delays in collections were already
evident in prior periods, have been further complicated by the military conflict. In
this regard, the Company has recorded impairment charges related to trade
receivables from these customers amounting to TEUR 260 (2021: TEUR 567). As
at 31 December 2022 the Company has trade receivables from Ukrainian and
Russian customers (net of impairment) amounting to TBGN 10,975 and liabilities,
related to advances received, amounting to TBGN 2,081.
The Company continuously analyzes all possible impacts of changing micro- and
macroeconomic conditions on the Company's future financial position and results of
operations. Inflationary processes, expressed in increased costs of direct materials, energy
and labour per unit of production, have a significant impact on the Company's operations.
The Company has been able to limit the effect of these negative impacts of the
macroeconomic environment by refining its customer and product mix (with a focus on
high-margin products and markets) and, where necessary, applying an indexation of
selling prices to its customers.
V. IMPORTANT EVENTS WHICH OCCURRED AFTER THE DATE OF THE ANNUAL
FINANCIAL STATEMENTS
All important events, which have occurred after the date of the annual financial
statements, were disclosed through the information disclosure system of MONBAT AD,
namely - to the regulated securities market, the Financial Supervision Commission and
the public. The information is also available on the website of the company
www.monbatgroup.com.
In January 2023 Britishvolt, the entity that MONBAT AD has an agreement with for
the sale of Monbat Holding GmbH, has entered into administration legal proceedings under
the UK Insolvency Act from 1986 to restructure its activities following issues with its cash-
flows.

29
In the end of February 2023, the company Recharge Industries acquired Britishvolt
following the abovementioned administration process (Note 7.1).
On 22 March 2023 the Company together with its subsidiary Monbat Recycling EAD,
sent a notice to Britishvolt to terminate the contract for the sale of Monbat Holding GmbH
due to Britishvolt’s failure to comply with the agreed terms.
No other adjusting or non-adjusting events have occurred between the reporting
date and the date of authorization of these individual financial statements.
VI. CURRENT TRENDS AND PROBABLE FUTURE DEVELOPMENT OF THE
COMPANY
In the upcoming three years the entity is expected to enter a new stage and
implement new approach to access target markets through a hybrid strategy for growth
(production and distribution), as well as to create conditions for specialization in three
categories: products derived from the recycling activities of the company, carried out by
the subsidiaries of Monbat AD; adoption of new technologies for the production of
batteries; and to increase the number of product and technology solutions in the field of
energy management.
Monbat Group will use its financial strength and excellent relations with customers
across more than 75 countries to enrich its portfolio of products and services in order to
meet emerging trends in the battery industry.
VII. RESEARCH AND DEVELOPMENT ACTIVITIES
The management of Monbat AD highly appreciates the importance of continuous
development through elaborating new technologies and continuously invests significant
resources and efforts in this direction.
The activities related to development and adoption of new products is being carried out
jointly by the Marketing and Communications Department, Sales Department, Technology
Department, Production, Operations and Projects Department and Testing Laboratory.
The company’s own research and development laboratory – MGLab, is equipped with
modern, specialized electronic devices.
The highly qualified staff of both MONBAT AD and MGLab ensures the company’s
technological and innovative growth. We conduct various chemical, physical and electrical
tests required under the internationally recognized standards for lead-acid batteries.
The Research and Development department of MONBAT AD works in close cooperation
with the Institute of Electrochemistry and Energy Systems (IEES) of the Bulgarian
Academy of Sciences.
The expenditure incurred on research and development activities until 2022 forms a part
of the overall amount spent on remunerations for the experts in the Marketing and
Communications Department, Sales Department, Technology Department, Production,
Operations and Projects Department and Testing Laboratory of MONBAT AD. Investments
in research and development activities form a part of the overall expenditure of the
company for the respective periods. As a result, the following expenditure cannot be
explicitly presented.
In 2022, a significant part of the research and development activity was focused on the
product and production process development of innovative bipolar lead batteries based on
the license acquired from the American company Advanced Battery Concepts LLC. for
GreenSeal® technology.

30
VIII. INFORMATION REQUIRED PURSUANT TO ART. 187D AND ART. 247 OF THE
COMMERCIAL LAW
1. The number and the nominal value of the acquired and transferred
through the year own stocks; the share of the capital which they represent, as
well as the price at which the acquisition or transfer have been executed
On 21.09.2022, the Board of Directors of Monbat AD based on Art. 17, para. 2
and para. 3 of the company’s Articles of Association with reference to art. 187b of the
Commercial Act and on the grounds of art 111, paragraph 5 of the Public Offering of
Securities Act the Board of Directors adopted a decision for a new buy back procedure of
company’s own shares to be performed within the limits, set up under the provision of art.
17 of the company’s Articles of Association, as follows:
Number of shares liable to buy back under the current procedure – up to 3 % of
the company’s registered capital or up to 1 170 000 shares.
• Minimum price for the buyback – BGN 4.51
• Maximum price for the buyback – BGN 8.75
• Initial term for the buyback – 26.09.2022.
2. The grounds for the acquisitions made through the year
Pursuant to the provisions of the company’s Articles of Association the Board of
Directors of MONBAT AD has the power to initiate redemption procedures.
3. The number and the nominal value of the possessed own stocks and the
share of the capital which they represent
The total number of own shares owned by the company as of 31.12.2022 is 27,000 or
0.06923% of the voting rights of MONBAT AD
4. The total remuneration received during the year by the members of the
boards
In 2022 the members of the Board of Directors and the procurator have received
the following remuneration:
Table No 12
Full name Position
gross
amount/
BGN
Net/BGN
1 Evelina Slavcheva Member of the Board of Directors 40 000 36 000
2 Chavdar Danev Member of the Board of Directors 40 000 36 000
3 Viktor Spiriev Member of the Board of Directors 40 000 36 000
4 Peter Bozadzhiev Member of the Board of Directors 40 000 36 000
5 Petar Petrov Member of the Board of Directors 40 000 36 000
6 Kyle Anderson Member of the Board of Directors 40 000 36 000
7 Viktor Spiriev Executive member of the Board of
Directors 734 166 655 803
8 Peter Bozadzhiev Group Operations Director 564 642 503 231
9 Petar Petrov Director of the Battery division 307 453 271 762
10 Chavdar Danev Financial Director for Liaison with
Financial Institutions 93 811 84 430

31
5. The acquired, possessed and transferred stocks and bonds of the
company by the members of the Board of Directors during the year
As of 31.12.2022, the members of the Board of Directors do not own shares of the
capital of MONBAT AD.
6. The rights of the members of the Board of Directors to acquire stocks
and bonds of the company
Members of the Board of Directors of the Company may freely acquire shares of
the company’s capital on the regulated securities market subject to the provis ions of the
Market abuse regulation and the Law on Public Offering of Securities.
7. The participation of the members of the board of directors in commercial
companies as unlimited liable partners, the possession of more than 25 percent
of the capital of another company, as well as their participation in the
management of other companies or cooperation as procurators, managers or
members of boards
CHAVDAR DANEV – CHAIRMAN OF THE BOARD OF DIRECTORS
Names of all the companies and partnerships of which Mr. Danev has been a
partner as of 31.12.2022:
He has not participated in companies and partnerships as an unlimited liability
partner;
He has not hold more than 25% of the shares of the companies.
Information of all the companies and partnerships of which Mr. Danev has been
a member of the administrative, management or supervisory bodies and /or
other senior manager as of 31.12.2022:
• Member of the Managing Board of Prista Oil Holding EAD, UIC 121516626;
• Member of the Supervisory Board of Zaharni Zavodi AD, UIC 104051737
• Member of the Board of Directors of Zahar Invest AD, UIC 104119736
• Member of the Board of Directors of BTC Bulgaria, UIC 200635286
PETAR PETROV – MEMBER OF THE BOARD OF DIRECTORS
Names of all the companies and partnerships of which Mr. Petrov has been a
partner as of 31.12.2022:
He has not participated in companies and partnerships as an unlimited liability partner;
He has not hold more than 25% of the shares of the companies
Information of all the companies and partnerships of which Mr. Petrov has been
a member of the administrative, management or supervisory bodies and /or
other senior manager as of 31.12.2022:
He has not been a member of the administrative, management or supervisory bodies or
other senior management of other companies.
FLORIAN HUTH – MEMBER OF THE BOARD OF DIRECTORS
Names of all the companies and partnerships of which Mr. Huth has been a
partner as of 31.12.2022:
• Owner of Valenta 2017 EOOD, UIC: 204670224, 32A Cherny Vrah Blvd, Sofia;
Has not participated in companies and partnerships as an unlimited liability partner;

32
Information of all the companies and partnerships of which Mr. Huth has been a
member of the administrative, management or supervisory bodies and /or other
senior manager as of 31.12.2022:
• Member of the Supervisory Board of PRISTA OIL HOLDING EAD, UIC: 121516626,
20 Zlaten Rog Str., Sofia;
• Member of the BoD of SETCAR HOLDINGS LTD, Cyprus;
• Member of the Supervisory board of AND GNG EAST UKRAINE LTD, BVI
• Manager of Valenta 2017 EOOD, UIC: 204670224, 32A Cherny Vrah Blvd, Sofia
PETER BOZADZHIEV – MEMBER OF THE BOARD OF DIRECTORS
Names of all the companies and partnerships of which Mr. Bozadzhiev has been
a partner as of 31.12.2022:
• Owner of First CLAPPER EOOD, UIC 204947066, 21 Ivan Rilski Str. Sofia
• Has not participated in companies and partnerships as an unlimited liability partner;
Information of all the companies and partnerships of which Mr. Bozadzhiev has
been a member of the administrative, management or supervisory bodies and
/or other senior manager as of 31.12.2022:
• Member of the BoD of MONBAT NEW POWER AD, UIC: 204333335; 32A Cherny
Vrah Blvd., Sofia;
• Manager of First CLAPPER EOOD UIC 204947066, 21 Ivan Rilski Str. Sofia
• Member of the BoD of Societe Nouvelle de l’accumulateur Nour, UIC 1027384F,
Tunisia
EVELINA SLAVCHEVA - MEMBER OF THE BOARD OF DIRECTORS
Names of all the companies and partnerships of which Mrs. Slavcheva has been
a partner as of 31.12.2022:
She has not participated in companies and partnerships as an unlimited liability partner;
She holds more than 25% of the shares of the following companies:
• Managing partner with 50% in ELHIM ENERGY, OOD: 200171341, 12 Ivan
Milanov Str., 1505 Sofia;
Information of all companies and partnerships of which Mrs. Slavcheva has
been a member of the administrative, management or supervisory bodies and
/or other senior manager as of 31.12.2022:
• Managing partner in ELHIM ENERGY, UIC: 200171341, 12 Ivan Milanov Str., 1505
Sofia;
KYLE ANDERSON – MEMBER OF THE BOARD OF DIRECTORS
Names of all the companies and partnerships of which Mr. ANDERSON has been
a partner as of 31.12.2022:
He has not participated in companies and partnerships as an unlimited liability partner;
He holds more than 25% of the shares of the following companies:
• Balkan Investment Group, Inc. USA

33
• KPA CPA LLC, USA
• GOOD SHEPHERD TAX AND FINANCIAL SERVICES LLC, USA
• KPI REAL ESTATE SERVICES LLC, USA
• LIBERTY PORT HOLDINGS LLC, USA
• FAE MEADOW FARMS LLC, USA
• SAINT NICHOLAS TRAIDING COMPANY INC, USA
• SAINT NICHOLAS FONDATION INC, USA
• DALLAS & LUISE ANDERSON FONDATION INC, USA
• LCA PARTNERSHIP LP, USA
• D&L PARTNERSHIP LP, USA
• PRISTA OIL TRADING LTD, UIC 204588474
• PRISTA PORT LTD, UIC 203258566
• PRISTA PORT BUCHANAN LLC
Information of all the companies and partnerships of which Mr. ANDERSON has
been a member of the administrative, management or supervisory bodies and
/or other senior manager as of 31.12.2022:
• Balkan Investment Group, Inc. USA
• KPA CPA LLC, USA
• GOOD SHEPHERD TAX AND FINANCIAL SERVICES LLC, USA
• KPI REAL ESTATE SERVICES LLC, USA
• LIBERTY PORT HOLDINGS LLC, USA
• FAE MEADOW FARMS LLC, USA
• SAINT NICHOLAS TRAIDING COMPANY INC, USA
• SAINT NICHOLAS FONDATION INC, USA
• DALLAS & LUISE ANDERSON FONDATION INC, USA
• LCA PARTNERSHIP LP, USA
• D&L PARTNERSHIP LP, USA
• PRISTA OIL TRADING LTD, UIC 204588474
• PRISTA PORT LTD, UIC 203258566
• PRISTA PORT BUCHANAN LLC
VIKTOR SPIRIEV – EXECUTIVE MEMBER OF THE BOARD OF DIRECTORS
Names of all the companies and partnerships of which Mr. SPIRIEV has been a
partner as of 31.12.2022:
He has not participated in companies and partnerships as an unlimited liability partner;
He holds more than 25% of the shares of the following companies:
Kauchein OOD, UIC 205521176
Information of all the companies and partnerships of which Mr. SPIRIEV has been
a member of the administrative, management or supervisory bodies and /or
other senior manager as of 31.12.2022:
• SPIRIEV AD, UIC 117599580 - members of the board of directors
• ARTMONBAT AD, UIC 205774610 - members of the board of directors
• MONBAT NBP EAD, UIC 206010099 - members of the board of directors
• STS SRL Italy UIC 0244198078 - members of the board of directors
• Societe Nouvelle de l’accumulateur Nour Tunisia, UIC 1027384F – member of the
BoD

34
8. Executed contracts in 2022 with members of the Board of Directors or
their related persons beyond the usual activity of the company or substantially
diverted from the market requirements
In 2022 there have not been executed contracts with members of the Board of
Directors or their related persons beyond the usual activity of the company or substantially
diverted from the market requirements.
9. Planned economic policy for the next year, including the expected
investments and development of the personnel, the expected revenue from
investments and development of the company, as well as the forthcoming
transactions of substantial importance for the activity of the company
The company presents a development forecast on a consolidated basis.
IX. PRESENCE OF BRANCHES OF THE ENTERPRISE
The company does not have registered branches in Bulgaria or abroad.
X. FINANCIAL INSTRUMENTS USED BY THE COMPANY
In 2022 MONBAT AD has used instruments, representing commodity swaps on lead
to hedge cash flows and limit the risk of a change in the London Metal Exchange price of
lead. The Company has not used any material financial instruments to hedge the risks of
changes in foreign exchange rates, interest rates or other cash flows. The Company could
have exposure to liquidity, market, interest rate, currency and operational risks arising
from the use of financial instruments.
XI. INFORMATION UNDER APPENDIX NO 2 OF ORDINANCE NO 2 OF FSC
1. Information given in value or quantitative terms about the main categories
of commodities, products and/or provided services, with indication of their share
in the revenues from sales of the issuer as a whole and the changes that occurred
during the reporting fiscal year.
SALES OF LEAD-ACID BATTERIES FOR THE PERIOD OF 2020- 2022
Table No 13
Year 2022 2021 2020
Number of batteries sold 2 642 814 3 429 234 3 077 971
Number of plates sold converted into
batteries 0 0 139 652
BREAKDOWN OF SALES BY TYPES OF BATTERIES
Table No 14
BREAKDOWN OF SALES BY TYPES OF
BATTERIES (Share of quantity sold) 2022 2021 2020
Starter Batteries 82.60% 84.12% 81.92%
Stationary Batteries 6.44% 6.05% 6.40%
Semi traction Batteries 10.96% 9.83% 7.34%
Plates 0% 0% 4.34%
Total: 100% 100% 100%

35
Table No 15
BREAKDOWN OF SALES BY TYPES OF
BATTERIES (share of sales revenue) 2022 2021 2020
Starter Batteries 64.09% 67.13% 67,73%
Stationary Batteries 17.81% 17.24% 19,12%
Semi traction Batteries 18.10% 15.63% 11,99%
Plates 0% 0% 1,86%
Total: 100% 100% 100%
In 2022 the weighted average capacity per unit of battery sold is 90 Ah (2021 - 84
Ah)
2. Information about the revenues allocated in separate categories of
activities, domestic and external markets as well as information about the
sources for supply of materials required for the manufacture of commodities or
the provision of services with indication of the degree of dependence in relation
to any individual seller or buyer/user, where if the share of any of them exceeds
10 per cent of the expenses or revenues from sales, information shall be provided
about every person separately about such person’s share in the sales or
purchases and his relations with the issuer
Information on revenues distributed by main categories of activities is provided in Table
No5.
Information about the revenues based on market segmentation is provided in table No2.
3. Information about concluded material transactions
In 2022, MONBAT AD did not conclude significant transactions within the meaning
of Ordinance 2 of the FSC, with the exception of those disclosed in the financial statement:
- In May 2022 the Company entered into an agreement to sell 100% of its investment
in the subsidiary company Monbat Holding GmbH. As at 31 December 2022 the
deal has not been concluded.
- In 2022 the Company entered into an agreement for the sale of the assets of its
subsidiary company Monbat Immobilien GmbH. As at 31 Decenber 2022 the deal
has not been concluded.
- In 2022 the Company acquired an additional share of 36.71% of Societe Nouvelle
de l’accumulateur Nour, increasing its share in the company to 60%.

36
4. Information about the transactions concluded between the issuer and
related parties during the reporting period, proposals for conclusion of such
transactions as well as transactions which are outside its usual activity or
substantially deviate from the market conditions, to which the issuer or its
subsidiary is a party, indicating the amount of the transactions, the nature of
relatedness and any information necessary for an estimate of the influence over
the issuer’s financial state.
In 2022 MONBAT AD has concluded transactions with the following related parties:
Table No 16
Related party Type of relation Transactions
Monbat Trading OOD Shareholder in Monbat AD Purchase of goods and
services, sale of services and
loan granted by Monbat AD.
Prista Oil Holding EAD Shareholder in Monbat AD and
ultimate parent company
Purchase of goods, materials
and services; loan and deposit
granted by Monbat AD.
START AD Subsidiary company of Monbat AD Sale of finished goods and
services. Purchases of
materials, services, fixed assets
and goods by MONBAT AD.
MONBAT PLC DOO Subsidiary company of Monbat
Recycling EAD
Purchase of materials and
services by MONBAT AD.
YU Monbat DOO Subsidiary company of Monbat PLC
DOO
Sale of finished goods by
MONBAT AD.
SC MONBAT RECYCLING SRL Subsidiary company of Monbat
Recycling EAD
Purchase of materials and
services by MONBAT AD.
MONBAT RECYCLING EAD Subsidiary company of MONBAT
AD, where the shareholding
interest is 100%
Sale of materials, services and
technological waste. Purchase
of materials, services, and
others by MONBAT AD.
SC MONBAT ROMANIA SRL Subsidiary company of SC
MONBAT RECYCLING SRL
Sale of production and goods
by MONBAT AD.
MONBAT HOLDING GmbH Subsidiary of Monbat AD (90%
ownership of the share capital)
and Monbat Recycling EAD (10%)
Loan granted by Monbat AD.
MONBAT SPED LTD Subsidiary company of MONBAT
AD
Sale of services and goods.
Purchase of services and
materials. Loan granted by
Monbat AD.
Monbat SA Proprietary Limited Subsidiary company of Monbat AD Loan granted and sale of
finished goods and services by
Monbat AD.
ART Monbat AD Subsidiary company of MONBAT
AD
Loan granted and purchase of
materials by Monbat AD.
Monbat Tunisia BV Subsidiary company of MONBAT
AD, deregistered in 2022
Loan granted by Monbat AD.
Monbat Immobilien GmbH Subsidiary company of MONBAT
AD
Loan granted by Monbat AD.
Energy Batteries Nigeria
Limited
Subsidiary company of MONBAT
AD
Sale of finished goods and
services by Monbat AD.
Monbat NBP EAD Subsidiary company of MONBAT
AD
Loan granted by Monbat AD.
Societe Nouvelle des
Accumulateurs Nour
Subsidiary company of MONBAT
AD
Purchase of materials, sale of
materials, finished goods and
services by Monbat AD.

37
Related party Type of relation Transactions
Societe Nour Distribution Subsidiary company of Societe
Nouvelle des Accumulateurs Nour
Sale of materials, production
and services by Monbat AD.
Alliance Energy Companies AD Other related parties of Monbat AD Loan granted by Monbat AD.
Prista Invest AD Other related parties of Monbat AD Loan granted by Monbat AD.
Torlashka Sreshta EOOD Other related parties of Monbat AD Loan granted by Monbat AD.
Holdco Investment Other related parties of Monbat AD Loan granted by Monbat AD.
Prista Holdco Cooperatief U.A, Shareholder in Monbat AD Loan received from Monbat AD.
Atanas Bobokov A person exercising joint control
over Prista Oil Holding EAD
Accrued interest on loans
granted by Monbat AD.
Plamen Bobokov A person exercising joint control
over Prista Oil Holding EAD
Accrued interest on loans
granted by Monbat AD.
No transactions with related parties have been concluded which are outside
Monbat’s usual activity or substantially deviate from the market conditions.
Information about the transactions concluded between the company and the
related parties during the reporting period can be found in the published separate financial
statements of the issuer.
5. Information about events and indicators of unusual for the issuer nature,
having substantial influence over its operation and the realized by it revenues
and expenses made; assessment of their influence over the results during the
current year
In 2022 no unpredictable and unforeseen circumstance of an extraordinary nature
occurred that had an impact on the company.
6. Information about off-balance kept transactions – nature and business
purpose, indication of the financial impact of the transactions on the activity, if
the risk and benefits of these transactions are substantial for the assessment of
the issuer’s financial state.
In 2022 no off-balance transactions were concluded.
7. Information about holdings of the issuer, about its main investments in
the country and abroad (in securities, financial instruments, intangible assets
and real estate), as well as the investments in equity securities outside its
economic group and the sources/ways of financing
As of 31.12.2022 MONBAT AD has direct and indirect holdings in the following
subsidiaries within the economic group of the issuer:
Table No 17
Company’s name Principal activity
Capital share or
percentage of votes at
the General Assembly
as of 31.12.2022
1 START AD, Sofia Production, service and marketing of accumulator batteries;
engineering and development-implementation activities; production
and marketing of equipment for production of accumulator batteries;
foreign and domestic trade and setting up commercial networks,
specialized stores and representation offices.
97.80% of the voting
shares
2 SC MONBAT
RECYCLING SRL
Recycling of accumulator batteries and lead scrap, lead alloys,
polyethylene and polypropylene materials, trading in accumulator
batteries, batteries, lead, polyethylene and polypropylene scrap and
materials on the territory of the Republic of Romania as well as export
and import from and to the Republic of Romania of scrap, materials
and finished goods.
100% of the capital

38
Company’s name Principal activity
Capital share or
percentage of votes at
the General Assembly
as of 31.12.2022
3 MONBAT
RECYCLING EAD
Recycling of batteries and lead scrap, lead alloys, polyethylene and
polypropylene materials, trading in accumulator batteries, batteries,
lead, polyethylene and polypropylene scrap and materials on the
territory of Bulgaria.
100% of the capital
4 MONBAT PLC DOO Recycling of accumulator batteries and lead scrap, lead alloys,
polyethylene and polypropylene materials, trading in accumulator
batteries, batteries, lead, polyethylene and polypropylene scrap and
materials on the territory of the Republic of Serbia as well as export
and import from and to the Republic of Serbia of scrap, materials and
finished goods.
100% of the capital
5 MONBAT
ROMANIA SRL
Trade company with scope of activity: trading, service and marketing
of accumulator batteries, lead, polyethylene and polypropylene scrap.
100% of the capital
6 MONBAT NEW
POWER AD
Trading company. 51% of the capital
7 Energy Batteries
Nigeria Limited
Sale of batteries and other battery related materials. 100% of the capital
8 MONBAT HOLDING
GmbH
Holding Company which holds the equity interest in EAS BATTERIES
GmbH and MONBAT NEW POWER GmbH.
100% of the capital
9 EAS BATTERIES
GmbH
Production, trade and R&D in the field of Li-ion Batteries. 100% of the capital
10 „MONBAT NEW
POWER“ GmbH
Production, trade and R&D in the field of Li-ion Batteries. 100% of the capital
11 Monbat Italy Srl. Holding Company which holds the equity interest in Piombifera
Italiana.
100% of the capital
12 PIOMBIFERA
ITALIANA SPA
Production, processing and trade of metal alloys, color and ferrous
metals, semi, intermediate processing plastics, anhydrous sodium
sulfate, and all products, products and / or waste resulting from the
processing cycle; the exercise of commissioning systems in reserve,
pre-storage, handling and utilization of hazardous waste and / or toxic
and harmful and / or dangerous waste, consisting of sludge and waste
of used batteries, and / or waste, including scrap minerals or alloys
containing lead and / or heavy metals; management of plants for
secondary lead smelting slag, including inertia chairs, aimed at
producing concrete and / or produced products and / or bituminous
products and manufacture of lead acid batteries.
100% of the capital
13 YU Monbat DOO Trade company with the following activities: trade, service and sale
of lead-acid batteries, battery, lead polyethylene and polypropylene
scrap
100% of the capital
14 MONBAT SPED
LTD
Transport services, internal and external transport, spedition, export
and import of special goods and objects, opening of a warehouse
network in the country, commercial agency and intermediation.
100% of the capital
15 ART MONBAT AD Manufacturing, trade, development of research activities in the field
of nanostructured materials; sales of nanostructured additives in
various industries
51% of the capital
16 MONBAT
IMMOBILIEN
Trading company 100% of the capital
17 STC S.R.L Manufacturing, installation, research and development in the field of
chemical and electrochemical, metallurgical and environmental
industries; sale and installation of machinery
66,66% of the capital
18 Monbat South
Africa Proprietary
Limited
Sale of batteries and other battery-related materials 51% of the capital
19 Monbat NBP EAD Development of bi-polar batteries 100% of the capital
20 Battery Pro South
Africa LTD
Trading with different types of batteries and accessories 20,4% of the capital
21 Leventa OOD Services provider 46% of the capital
22 Société Nouvelle
des
Accumulateurs
(SNA)
A holding company, which owns majority steaks, and controls
companies from the Nour Group. Production, servicing and sales of
batteries, engineering and development and implementation
activities, production and trade of equipment for the manufacturing
of batteries, foreign and domestic trade and construction of trade
networks, specialized stores and representative offices.
60% of the capital

39
Company’s name Principal activity
Capital share or
percentage of votes at
the General Assembly
as of 31.12.2022
23 Société NOUR
Distribution (SND)
Sales of batteries on the Tunisian market by building trade networks,
specialized stores and representative offices.
59.85% of the capital
24 Société Technique
et Ingénierie de
Précision (TIP)
Provision of engineering and support services to Nour Group
companies.
55% of the capital
25 Société NOUR des
Batteries
Industrielles
(NBI)
Provision of services to Nour Group companies. 44.31% of the capital
26 Société NOUR
Recycling (SNR)
Recycling of batteries and lead scrap, lead alloys, polyethylene and
polypropylene materials, trade in batteries, battery, lead polyethylene
and polypropylene scrap and materials in the territory of Tunisia.
30.50% of the capital
8. Information on the loan agreements concluded by the issuer, respectively
the person under § 1d of the Additional Provisions of the Public Offering of
Securities Act, by its subsidiary, in its capacity of borrowers, indicating the terms
and conditions, including payment deadlines, as well as information for provided
guarantees and commitments
8.1. Loan contracts of Monbat AD in its capacity as a borrower:
1. KBC bank EAD
Contract dated 25.02.2014
Maturity date: 15.02.2016
Loan amount: EUR 3 200 000
Type of credit: Revolving loan
Interest: 1-month EURIBOR + mark-up
Collateral: Rank collateral of mortgage of own real estate, cadaster No 48489.5.597,
cadaster No 48489.5.281, cadaster No 48489.5.396, together with buildings on it, on the
territory of Montana str. Indystrialna.
With annex N 4/ 30.06.2016 the amount of the loan was increased to EUR 4 200 000
With annex m.06.2016 the amount of the loan was increased to EUR 9 200 000:
Maturity date: 15.11.2023
Pledge on fixed assets owned by Monbat AD and Monbat Recycling Bulgaria.
First rank pledge agreement on Monbat’s receivables on bank accounts held with the bank.
Utilized amount as of 31.12.2022 at the amount of BGN 11 206 694 or EUR 5 729 891,
entirely short-term.
2. Eurobank Bulgaria AD
Contract No 339/07.12.2004
Maturity date: 01.09.2006
Loan amount: EUR 2 200 000
Type of credit: Credit line
Interest: Variable reference interest rate + mark-up
Collateral: Pledge on assets and inventories owned by Monbat AD
With annex from 16.06.2017 the amount of the loan was increased to BGN 18 971 401
Maturity date: 01.10.2023
Utilized amount as of 31.12.2022 at the amount of BGN 18 970 948, entirely short-term.

40
3. Eurobank Bulgaria AD
Contract No 100 -972 / 23.11.2010
Maturity date: 23.11.2011
Amount borrowed: EUR 1 000 000
Type of credit: Working capital
Interest: 3-month EURIBOR + mark-up
Collateral:
Real estate 1: ½ ideal part of land with identification N48489.282 on the cadastral map of
Montana, buildings and factories, warehouse currently owned by Monbat AD, approved
with Directive No RD -18-19-/05.04.2006 of the Procurator of AK.
Real estate 2: ½ ideal part of land with identification N48489.282 on the cadastral map of
Montana, buildings and factories, warehouse currently owned by Monbat AD, approved
with Directive No RD -18-19-/05.04.2006 of the Procurator of AK.
Pledges:
Pledge 1: Machines, installations and vehicles, located in the factory of Monbat AD in
Montana, 72 “Industrial” str.
Pledge 2: Vehicle weighing machine and security room with an area of 102 sq.m.,
according to documentary evidence and inventory number 300000003
Pledge 3: Unloading area, with an area of 1980 sq.m., according to documentary evidence
and property inventory number 3000000004.
A special pledge entered in the Central Register of Special Pledges- fixed assets, machinery
and equipment, movables.
There is annex from 29.07.2014 and the loan is transferred from EUR in BGN
Maturity date: 30.09.2023
Amount borrowed: BGN 1 955 830
Type of credit: Credit line
Interest: Variable reference interest rate + mark-up
Collateral: Promissory Note for the amount of BGN 1 955 830
Utilized amount as of 31.12.2022 at the amount of BGN 1 914 246, entirely short-term.
4. DSK Bank EAD
Contract No1675/16.09.2015
Maturity date: 10.09.2023
Loan amount: EUR 2 500 000
Type of credit: For working capital
Interest: 1 M EURIBOR + mark-up
Collateral: Pledge agreement on receivables and property, plant and equipment
Utilized amount as of 31.12.2022 at the amount of EUR 850 000 or BGN 1 662 455,
entirely short-term.
5. DSK Bank EAD
Contract No1674/16.09.2015
Maturity date: 10.09.2016
Loan amount: BGN 2 000 000
Type of credit: For working capital
Interest: Variable reference interest rate + mark-up – solely short-term.
With annex from 13.11.2019 a loan amount of up to BGN 9 000 000 is increased.
Maturity date: 10.09.2023
First rank pledge on the fixed assets of Monbat AD
Next in line special pledge on receivables.
Utilized amount as of 31.12.2022 at the amount of BGN 8 999 883, entirely short-term.

41
6. KBC bank EAD
Contract dated 09.11.2015
Maturity date: 15.12.2023
Loan amount: BGN 490 000
Type of credit: Overdraft
Interest: Variable reference interest rate + mark-up
Collateral: No collateral
Utilized amount as of 31.12.2022 at the amount of BGN 470 321, entirely short-term.
7. Eurobank Bulgaria AD
Contract 359/2017 dated 05.10.2017
Loan amount: EUR 2 556 459
Type of credit: Credit line
Interest: 3 M EURIBOR + mark-up
Maturity date: 31.12.2022
Collateral: First pledge agreement for Monbat’s receivables from the third parties.
Utilized amount as of 31.12.2022 at the amount of BGN 3 504 102 or EUR 1 791 619,
entirely short-term.
8. UBB AD
Contract 20F-00428 dated 10.04.2020
Maturity date: 31.12.2022
Loan amount: EUR 2 000 000
Type of credit: Credit line
Interest: 1 M EURIBOR + mark-up
Collateral: Pledge on receivables on all borrower‘ s accounts opened in the bank; insurance
with BAEZ, covering the exposure under the contract up to EUR 2 million.
With an annex of 15.12.2020, the amount of the loan is divided into two sub-limits of 1
million euro with the right to draw down the first sub-limit until 31.12.2022 and final
repayment until 31.12.2022 and with the right to draw down the second sub-limit in case
of successful review, which the bank will carry out until 30.12.2022.
With an annex of 15.11.2022 the maturity date is extended to 31.01.2024
Utilized amount as of 31.12.2022 at the amount of BGN 3 910 003 or EUR 1 999 153,
entirely long-term.
9. UBB AD
Contract dated 10.04.2020
Maturity date: 30.09.2026
Loan amount: EUR 13 000 000
Type of credit: Credit line
Interest: 6 M EURIBOR + mark-up
Collateral:
Another mortgage of land with an area of 38 665 m2, owned by Start AD and Monbat
Recycling EAD, together with the buildings and improvements built on it and the future
buildings planned for construction.
Another mortgage on land with an area of 11 343 m2, owned by Start AD and Monbat
Recycling EAD
Another mortgage of a building with an area of 3 510 m2, owned Monbat Recycling EAD
warehouse.
Special pledge on machinery, equipment and equipment, means of transport, business
inventory owned by Start AD
First special pledge of items and inventories, with a carrying amount of EUR 4 million,
owned by Start AD
Special pledge on receivables on all accounts of the borrower, opened with the bank..

42
With an annex of 15.12.2020 the amount of the loan was changed to EUR 10 000 000 and
the loan is divided into two sub-limits of TEUR 5 833 and TEUR 4 167 respectively with the
right to draw down the first sub-limit by 30.12.2020 and repayment of EUR 1 million on a
6-month basis starting on 30 January 2021 and with the right to draw down the second
sub-limit in case of successful review, which the Bank will carry out by 31.12.2022. In
case of successful review, the maturity date is 30.07.2025.
Utilized amount as of 31.12.2022 at the amount of BGN 11 734 980 or EUR 6 000 000 of
which BGN 3 911 660 (EUR 2 000 000) short-term.
10. Investbank AD
Contract dated 21.07.2021
Maturity date: 26.03.2023
Loan amount: EUR 5 000 000
Type of credit: Credit line
Interest: 3 M EURIBOR + mark-up
Collateral:
First rank contractual mortgage of a property with an area of 39 998 sq. M., owned by
Monbat AD, for the purpose of building a bipolar battery manufactory.
First rank pledge on 50 829 042 shares in line with the Commercial Law with voting rights
with a nominal price of BGN 1, owned by Monbat AD as shares in Monbat Recycling EAD.
First rank pledge on current and future receivables available in all open accounts held by
Monbat AD.
With an annex dated 14.07.2022, the loan amount is increased to EUR 8 315 000.
Utilized amount as of 31.12.2022 at the amount of BGN 9 779 150 (EUR 5 000 000),
entirely short-term.
11. Investbank AD
Contract dated 25.02.2022
Maturity date: 26.03.2023
Loan amount: EUR 5 000 000
Type of credit: Credit line
Interest: 3 M EURIBOR + mark-up
Collateral:
First-order contractual mortgage on land with an area of 782 m2, owned by Monbat
Recycling EAD. First-order pledge established on current and future receivables for the
balances in all accounts in Investbank opened by Monbat AD, Monbat Recycling EAD and
Prista Oil Holding EAD Financial risk insurance policy issued by BAEZ in favor of the bank,
with a credit limit of not less than EUR 4 000 000.
Utilized amount as of 31.12.2022 at the amount of BGN 9 779 150 (EUR 5 000 000),
entirely short-term.
12.Bank credit card accounts with credit limits BGN 50 000 and utilized amounts as of
31.12.2022 at the amount of TBGN 1.
Loan contracts from other credit institutions
13. UBB Interlease EAD
Contract dated 18.10.2019
Maturity Date: 19.11.2024
Amount of Credit: EUR 1 271 250
Type of credit: credit line
Interest: Fixed interest
Collateral: assembly line for lead-acid accumulators and lead-acid furnace
Utilized amount to 31.12.2022 in the amount of EUR 466 094 or BGN 911 600, of which
BGN 497 000 short-term.

43
14. UBB Interlease EAD
Contract dated 29.11.2019
Maturity Date: 29.12.2024
Amount of Credit: EUR 219 999
Type of credit: credit line
Interest: Fixed interest
Collateral: electrical systems CDR400/420V-8CH (4 pieces) and CDR400/360V-10CH (5
pieces)
Utilized amount to 31.12.2022 in the amount of EUR 87 836 or BGN 171 792, of which
BGN 86 000 short-term.
15. UBB Interlease EAD
Contract dated 26.11.2021
Maturity Date: 26.11.2025
Amount of credit: EUR 420 366
Type of credit: credit line
Interest: Fixed interest
Collateral: 13 machines
Utilized amount to 31.12.2022 in the amount of EUR 248 575 or BGN 486 170, of which
BGN 155 000 short-term
16. UBB Interlease EAD
Contract dated 27.09.2022
Maturity Date: 31.10.2024
Amount of credit: EUR 114 735
Type of credit: credit line for fixed assets
Interest: 3M EURIBOR + mark-up
Collateral: Computer equipment
Utilized amount to 31.12.2022 in the amount of EUR 72 167 or BGN 141 146 of which BGN
91 548 is short-term
17. UBB Interlease EAD
Contract dated 11.11.2022
Maturity Date: 30.04.2027
Amount of credit: EUR 1 094 544
Type of credit: credit line for fixed assets
Interest: 3M EURIBOR + mark-up
Collateral: Machines and equipment
Utilized amount to 31.12.2022 in the amount of EUR 54 677 or BGN 106 939 – entirely
short-term
Loan contracts of the subsidiaries of Monbat AD, in their capacity as borrowers:
1. UBB AD
Contract No1317/18.03.2016
Borrower: Start AD
Maturity date: 31.01.2028
Amount borrowed: EUR 4 500 000
Type of credit: working capital
Interest: 3-month EURIBOR + fixed mark-up
Collateral: Land with ident. N72624.603.300, including the buildings on it.
Land with ident. N72624.603.190, including the buildings on it.
Land with ident. N72624.603.191, including the buildings on it.
Land with ident. N72624.603.193., including the buildings on it.
Land with ident. N72624.603.196, including the buildings on it.

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Special pledge on plant and equipment. Pledges on bank accounts held with the bank.
Balance as at 31.12.2022 at the amount of EUR 4 493 208 or BGN 8 787 952
2. UBB AD
Contract 27.09.2022
Borrower: Start AD
Maturity date: 25.03.2028
Amount borrowed: EUR 546 000
Type of credit: investment type
Interest: 3-month EURIBOR + fixed mark-up
Collateral: Assets
Balance as at 31.12.2022 at the amount of EUR 394 090 or BGN 770 774
3. Raiffeisen Bank SA Romania
Contract N 80046/IS/2017
Borrower: SC Monbat Recycling S.R.L.
Maturity date: 30.05.2023
Amount borrowed: EUR 5 000 000
Type of credit: Credit line
Interest rate and commission: 1Week EURIBOR + fixed mark-up
Collaterals: Corporate guarantee issued by Prista Oil Holding EAD as well as - recycling
equipment for recycling of scrap batteries. Special pledge on inventory and equipment
Balance as at 31.12.2022 at the amount of EUR 3 971 204 or BGN 7 767 000
4. KBC Bank EAD
Contract dated 15.07.2015
Borrower: Monbat Recycling EAD
Maturity date: 30.07.2023
Amount borrowed: EUR 3 000 000
Type of credit: Credit line
Interest rate and commission: 1 М EURIBOR + fixed mark -up
Collaterals: First rank pledge of bank accounts held in the bank
Third rank pledge on Engitec installation
First rank pledge on inventory
Balance as at 31.12.2022 at the amount of EUR 3 000 000 or BGN 5 867 490
5. Eurobank Bulgaria AD
Contract N 196/2016
Borrower: Monbat Recycling EAD
Maturity date: 30.09.2023
Amount borrowed: EUR 1 500 000
Type of credit: Credit line
Interest rate and commission: 3 М EURIBOR + fixed mark -up
Repayment schedule: Currently paid depending on the available cash.
With annex 27.09.2017 the amount of the loan was increased to 2 500 000 EUR:
Repayment schedule: Currently paid depending on the available cash.
Collaterals: First rank pledge on receivables from third parties.
Balance as at 31.12.2022 at the amount of EUR 1 392 158 or BGN 2 722 824
6.Raiffeisen Bank Serbia
Contract dated 15.04.2019
Borrower: Monbat PLC DOO
Maturity date: 14.12.2023
Amount borrowed: EUR 2 000 000
Type of credit: for working capital
Interest rate and commission: 1 М EURIBOR + fixed mark -up

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Collaterals: First rank pledge on inventories
Balance as at 31.12.2022 at the amount of EUR 2 000 000 or BGN 3 911 660
7. ProCredit Bank Serbia
Contract dated 24.06.2020
Borrower: Monbat PLC DOO
Maturity date: 24.06.2023
Amount borrowed: EUR 1 500 000
Type of credit: for working capital
Interest rate and commission: 1 М EURIBOR + fixed mark -up
Collaterals: Promissory notes issued by the entity
Balance as at 31.12.2022 at the amount of EUR 450 000 or BGN 880 124
8. ProCredit Bank Serbia
Contract dated 24.06.2020
Borrower: Monbat PLC DOO
Maturity date: 24.06.2023
Amount borrowed: EUR 450 000
Type of credit: Revolving line of credit
Interest rate and commission: 1 М EURIBOR + fixed mark -up
Collaterals: Promissory notes issued by the entity
Balance as at 31.12.2022 at the amount of EUR 388 298 or BGN 759 445
9. ProCredit Bank Serbia
Contract dated 10.11.2021
Borrower: Monbat PLC DOO
Maturity date: 10.11.2023
Amount borrowed: EUR 1 100 000
Type of credit: Revolving line of credit
Interest rate and commission: 1 М EURIBOR + fixed mark -up
Balance as at 31.12.2022 at the amount of EUR 1 099 788 or BGN 2 151 000
10. MEDIOCREDITO ITALIANO S.P.A.
Contract dated 30.04.2019
Borrower: Piombifera Italiana S.P.A.
Maturity date: 31.03.2029
Amount borrowed: EUR 3 500 000
Type of credit: for working capital
Interest rate and commission: 3 М EURIBOR + fixed mark -up
Balance as at 31.12.2022 at the amount of EUR 2 275 249 or BGN 4 450 000
11. MEDIOCREDITO CENTRALE SPA
Contract dated 30.06.2018
Borrower: Piombifera Italiana S.P.A.
Maturity date: 08.06.2028
Amount borrowed: 457 688 EUR
Type of credit: for working capital
Interest rate and commission: FIXED MARK-UP
Balance as at 31.12.2022 at the amount of EUR 0 or BGN 0

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12. STB
Contract dated 16.05.2016
Borrower: Societe Nouvelle des Accumulateurs Nour
Maturity date:31.03.2023
Amount borrowed: 3 500 000 TND, utilized in 5 separate tranches
Type of credit: investment credit
Interest rate and commission: Reference interest rate (TMM) + fixed mark-up
Balance as at 31.12.2022 at the amount of BGN 172 331
13. STB
Contract dated 13.04.2018
Borrower: Societe Nouvelle des Accumulateurs Nour
Maturity date: 30.04.2025
Amount borrowed: 2 500 000 TND
Type of credit: investment credit
Interest rate and commission: Reference interest rate (TMM) + fixed mark-up
Balance as at 31.12.2022 at the amount of BGN 615 470
14. STB
Contract dated 10.07.2018
Borrower: Societe Nouvelle des Accumulateurs Nour
Maturity date:31.07.2025
Amount borrowed: 1 250 000 TND
Type of credit: investment credit
Interest rate and commission: Referece interest rate (TMM) + fixed mark-up
Balance as at 31.12.2022 at the amount of BGN 369 278
15. STB
Contract dated 15.06.2022
Borrower: Societe Nouvelle des Accumulateurs Nour
Maturity date:15.03.2023
Amount borrowed: 3 700 000 TND
Type of credit: for working capital
Interest rate and commission: Reference interest rate (TMM) + fixed mark-up
Balance as at 31.12.2022 at the amount of BGN 2 186 143
16. STB
Contract dated 15.06.2022
Borrower: Societe Nouvelle des Accumulateurs Nour
Maturity date: 15.03.2023
Amount borrowed: 4 000 000 TND
Type of credit: for working capital
Interest rate and commission: Reference interest rate (TMM) + fixed mark-up
Balance as at 31.12.2022 at the amount of BGN 2 363 398
17. STB
Contract dated 13.04.2021. and 10.07.2021
Borrower: Societe Nour Distribution
Amount borrowed: 3 500 000 TND
Type of credit: for working capital, incl. overdraft facility on top of the amount borrowed
Interest rate and commission: Reference interest rate (TMM) + fixed mark-up
Balance as at 31.12.2022 at the amount of BGN 715 408

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18. STB
Contract dated 10.07.2021
Borrower: Societe Nour Distribution
Maturity date:15.12.2022
Amount borrowed: 1 000 000 TND
Type of credit: for working capital
Interest rate and commission: Reference interest rate (TMM) + fixed mark-up
Balance as at 31.12.2022 at the amount of BGN 2 167 107
19. STB
Contract dated 10.09.2022
Borrower: Societe Nour Recycling
Maturity date: 2029
Amount borrowed: 7 300 000 TND
Type of credit: : investment credit
Interest rate and commission: TMM + FIXED mark-up
Balance as at 31.12.2022 at the amount of BGN 1 772 548
20. STB
Contract from September 2022
Borrower: Societe Nouvelle des Accumulateurs Nour
Maturity date 15.03.2023
Amount borrowed 2 300 000 TND
Type of credit working capital
Interest rate Reference interest rate
Balance as at 31.12.2022 1 357 154 BGN
21. Other
In addition to the bank loan described above, STC S.R.L. uses different in type, structure
and maturity secured and unsecured short- term and long- term bank loans from different
banking institutions in the total amount of BGN 1 382 600 thousand as at 31.12.2022.
Summary of loan contracts from other financial institutions:
22. KBC lease Bulgaria EOOD
Contract of 036294-RF-001/21.12.2018
Borrower: Start AD
Maturity Date: 21.12.2023
Amount of Credit: 743 143 euro
Type of credit: credit line
Interest: Fixed interest
Collateral: ConCast System
Utilized amount to 31.12.2022 in the amount of 163 499 EUR or 319 777 BGN
23. KBC lease Bulgaria EOOD
Contract of 036294-RF-002/21.12.2018
Borrower: Start AD
Maturity Date: 21.12.2023
Amount of Credit: 534 967 EUR.
Type of credit: credit line
Interest: Fixed interest
Collateral: Double Wide ConRoll System
Utilized amount to 31.12.2022 in the amount of 102 167 EUR or 199 820 BGN

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24. UBB Interlease EAD
Contract. 0026504/E/30.03.2020
Borrower: Start AD
Maturity Date: 30.03.2024
Amount of Credit: 334 779 EUR.
Type of credit: credit line
Interest: Fixed interest
Collateral: machines and equipment for the production of lead-acid batteries.
Utilized amount to 31.12.2022 in the amount of 80 715 EUR or 157 864 BGN
25. UBB Interlease EAD
Contract. 0026504/D/13.01.2020
Borrower: Start AD
Maturity Date: 13.01.2025
Amount of Credit: 321 557 EUR.
Type of credit: credit line
Interest: Fixed interest
Collateral: tooling for casting ConCast gratings and rectifier systems.
Utilized amount to 31.12.2022 in the amount of 120 575 EUR or 235 825 BGN
26. UBB Interlease EAD
Contract. 0026504/H/2021/30.06.2021
Borrower: Start AD
Maturity Date: 30.06.2025
Amount of Credit: 654 584 euro.
Type of credit: Credit line
Interest: Fixed interest
Collateral: Separating machine BETTER for AGM tiles and equipment for it
Utilized amount to 31.12.2022 in the amount of 324 403 EUR or 634 477 BGN
27. UBB Interlease EAD
Contract. 0026504/I/2021/22.12.2021
Borrower: Start AD
Maturity Date: 21.12.2025
Amount of Credit: 78 845 euro.
Type of credit: Credit line
Interest: Fixed interest
Collateral: Checker – short circuit.
Utilized amount to 31.12.2022 in the amount of 59 843 EUR or 117 042 BGN
28. OBB Interlease EAD
Contract 0026504/ L/ 2022/ 29.09.2022
Borrower: Start AD
Maturity date 25.09.2026
Amount of credit 196 297 credit line
Equipment: Cutting machine with templates and drum
Utilized amount to 31.12.2022 in the amount of 144 149 EUR or 281 931 BGN
29. OBB Interlease EAD
Contract 0026504/N/2022/14.12.2022
Borrower: Start AD
Maturity date 14.12.2027
Amount of credit 50 990 EURO
Type of credit Fixed interest
Equipment Lifting maching
Utilized amount to 31.12.2022 in the amount of 45 891 EUR or 89 755 BGN

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30. Volvo Financial Services Bulgaria EOOD
Contract. 2274306 dated 07.10.2019
Borrower: Monbat Sped EOOD
Maturity Date: 16.11.2024
Amount of Credit: 491 250 EUR
Type of credit: credit line
Interest: Fixed interest
Collateral: 5 pc. Volvo trucks
Utilized amount to 31.12.2022 in the amount of 195 941 EUR or 383 226 BGN
31. Volvo Financial Services Bulgaria EOOD
Contract. 2454239-4/05.06.2020
Borrower: Monbat Sped EOOD
Maturity Date: 16.06.2025
Amount of Credit: 182 304 EUR
Type of credit: credit line; Interest: Fixed interest
Collateral: 2 pcs of Volvo trucks and 2 pcs of trailers
Utilized amount to 31.12.2022 in the amount of 96 488 EUR or 188 714 BGN
32. Volvo Financial Services Bulgaria EOOD
Contract. 2705097
Borrower: Monbat Sped EOOD
Maturity Date: 16.06.2025
Amount of Credit: 104 210 euro
Type of credit: Credit Line
Interest: Fixed interest
Collateral: Volvo L60H
Utilized amount to 31.12.2022 in the amount of 72 713 EUR or 138 028 BGN
33. ОТP Leasing EOOD
Contract 21941360451
Borrower: Monbat Recycling EAD
Maturity date 05.06.2027
Amount of credit 518 500 EUR
Type of credit Credit line
Interest Fixed interest
Collateral: Installation for advance treating with physical methods of a PE separator and
production of ABS grinder
Utilized amount to 31.12.2022 in the amount of 398 878 EUR or 780 139 BGN
34. Tunisia - Leasing of cars
Contract - 5 units from 2022
Borrower: Societe Nouvelle des Accumulateurs Nour
Maturity date 2025
Amount of credit 293 000 TND
Type of credit Leasing
Interest rate Reference interest rate
Utilized amount to 31.12.2022 156 646 BGN
Information on loan agreements concluded by subsidiaries and the ultimate parent
company, as borrowers, can be found in the published reports of the respective
companies.

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9. Information on the loans granted by the issuer, , or by their subsidiaries,
providing guarantees or assuming obligations in total to one person or his
subsidiary, including related parties or name and UIC of the person, the nature
of the relationship between the issuer, respectively the person under § 1e of the
additional provisions of the POSA, or their subsidiaries and the borrower, the
amount of outstanding principal, interest rate, contract date, repayment
deadline, the amount of the commitment, specific conditions other than those
referred to in this provision, as well as the purpose for which they were granted,
in case they were concluded as target.
I. Loan contracts of MONBAT AD, in its capacity as lender:
Table No 18
As at 31.12.2022 in BGN 2022 2021
Loan to MONBAT HOLDING GmbH - 1 789 584
Loan to MONBAT SPED EOOD 485 820 585 820
Loan to ART Monbat 4 921 000 3 538 647
Loan to Monbat Tunisia BV - 136 908
Loan to HOLDCO INVESTMENT 40 000 -
Loan to Monbat Trading OOD 3 276 000 3 869 560
Loan to Monbat SA Proprietary Ltd 977 915 977 915
Loan to Torlashka Sreshta EOOD 160 000 160 000
Loan to Monbat Eco Project OOD 221 800 221 800
Loan to Monbat NBP 2 700 000 2 550 000
Loan to Atanas Bobokov 3 268 652 3 268 652
Loan to Plamen Bobokov 1 830 000 1 830 000
Loan to Grafon (net of impairment) - 269 500
Deposit to Prista Oil Holding EAD 20 030 256 20 030 256
Loan to Prista Invest 3 696 000 2 114 252
Loan to Advanced Research and Technologies 97 000 97 000
Loan to Alliance Energy Company 700 000 -
Information about the loan terms is contained in the annual separate financial
statements of Monbat AD.
II. Loan contracts of MONBAT AD’s subsidiaries, in their capacity as
lenders:
• Contract dated 26.02.2020
Loan granted to Recycling Company EOOD
Lender: Start AD
Utilized principal: BGN 50 000
Maturity term: 1 year
Outstanding balance as at 31.12.2022: BGN 50 thousand
• Contract dated 06.01.2020
Loan granted to Prista Oil Holding EAD
Lender: Start AD
Utilized principal: BGN 825 000
Utilized principal: EUR 600 000
Maturity term: 5 years
Outstanding balance as at 31.12.2022 BGN 1 014 thousand

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• Contract dated 2012
Loan granted to Prista Oil Holding EAD
Lender: Monbat Recycling EAD
Utilized principal: BGN 3 911 thousand
Interest rate: 3.5 % annual interest rate.
Maturity term: 31.12.2024
Outstanding balance as at 31.12.2022: BGN 4 774 thousand
Repayment: no repayment schedule
With an annex from 31.12.2020 the term of the loan is changed to be on request,
but not later than 31.12.2024 and the accrued and unpaid interests are capitalized
in the value of the principal.
• Contract dated 2019
Loan granted to Prista Oil Holding EAD
Lender: Monbat Recycling EAD
Deposited amount: BGN 100 thousand
Maturity term: on request but no later than 1.12.2024
Interest rate: reference rate + 1.5%, but no less than 3.5% annual interest rate
Outstanding balance as at 31.12.2022: BGN 100 thousand
Repayment: no repayment schedule
• Contract dated 2021
Loan granted to Prista Oil Holding EAD
Lender: Monbat Recycling EAD
Utilized principal: BGN 180 thousand
Interest rate: 3.5% annual interest rate
Maturity term: 31.12.2024
Outstanding balance as at 31.12.2022 BGN 180 thousand
Information on loan agreements concluded by subsidiaries and the ultimate parent
company, as lenders, can be found in the published reports of the respective companies.
10. Information on the use of the funds from a new issue of securities carried
out
At the end of 2017 the company has issued a new issue of bonds.
MONBAT AD, has issued first order corporate convertible bonds with ISIN BG2100023170,
issued under the conditions of initial public offering as follows:
Principal amount of the issue: EUR 28 015 000 (twenty-eight million and fifteen
thousand).
Number of bonds: 28 015 (twenty-eight thousand and fifteen).
Denomination: EUR 1 000 (one thousand) each
Issue Date: 20/01/2018
Maturity Date: 20/01/2025
Type of bonds: convertible, ordinary, registered, dematerialized, interest-bearing,
freely transferable, unsecured.
Term to maturity: 84 (eighty-four) months.
Interest rate: floating rate of 6M EURIBOR plus premium of 300 basis points, but
not less than 3.00 % on an annual basis.
Interest payment date: 20 January and 20 July of each year during the Maturity
Date. If the Interest Payment Date is not a Business Day, the Interest Payment Date shall
be postponed to the next Business Day.
Amortization: in three installments at the end of the 5th, the 6th, and the 7th year
of the life of the bond; at 20%, 30% and 50% of the nominal value, respectively, which
corresponds to the following Interest Payment Dates: 20/01/2023, 20/01/2024 and

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20/01/2025. In the event of conversion, the principal repayments will be calculated on the
basis of the current bond issue's nominal value at the date of the respective principal
payment. In this case, the last principal installment at the end of the 7th year will be
equalized and will repay the entire outstanding nominal value of the issue, if such
outstanding nominal value exists.
Conversion option: Each bondholder may request the conversion of the bonds
he/she holds according to their current nominal amount at the Conversion Price on the
48th, 66th and 78th month after issuance, corresponding to the following Interest Payment
Dates, respectively: 20/01/2022, 20/07/2023 and 20/07/2024.
Conversion price: equal to 90% of the weighted average price of a MONBAT AD’ s
share on the BSE for the six months preceding the respective conversion date.
Minimum conversion threshold: 5% of the outstanding nominal amount of all Bonds on
each of the respective conversion dates.
Call option: The Issuer may redeem the residual outstanding part of the Bond issue
on the 60th month after issuance at 101% of the current outstanding principal amount.
The date of the Call option corresponds with the interest and principal payment on the
60th month or 20.01.2023 with the call option considering the corresponding 20%
principal instalment.
On 20.01.2018, the public offering has concluded successfully, and on 29.01.2018,
the new bond loan has been declared as concluded in the Commercial Register. “Monbat”
AD has raised 28 015 000.00 Euro, representing 54 792 577.45 equivalence in BGN, with
fixed exchange rate of BNB 1.95583/ЕUR.
Utilization of the fun ds raised from the bond issue issued by “Monbat” AD has
started on 26.06.2018, when “Monbat” AD has taken part in the acquisition of shares in
the capital of “Monbat Holding Germany” GmbH (parent company to EAS Germany GmbH
(“EAS”), to a full amount of 5 400 000 Euro.
The next utilization has been conducted on 05.12.2018 when “Monbat” AD has
taken part in the acquisition of shares in the capital of “Monbat Recycling” EAD (parent
company of Monbat Italy S.R.L), to the amount of 8 000 000 EUR. On 07.12.2018, “Monbat
Recycling” EAD participated in the increase of capital of „Monbat Italy“S.R.L. (the parent
company of Piombifera Italiana) through the acquisition of shares amounting to 8 000 000
EUR.
The next utilization has been conducted on 25.03.2019 when “Monbat” AD has
taken part in the acquisition of shares in the capital of “Monbat Holding Germany” GmbH
(parent company to EAS Germany GmbH (“EAS”), to a full amount of 2 227 500 Euro.
The next utilization to the amount of 1 340 533 EUR has been conducted on
25.07.2019 when “Monbat” AD acquired 66.66% of the share capital of STC S.r.l. for an
effective cash consideration of 1 340 533 EUR and contingent consideration of 236 529
EUR.
The next utilization has been conducted on 19.09.2019 when “Monbat” AD has
taken part in the acquisition of shares in the capital of “Monbat Holding Germany” GmbH
(parent company to EAS Germany GmbH (“EAS”), to a full amount of 1 800 000 Euro.
The next utilization has been conducted on 11.03.2020 when “Monbat” AD has
taken part in the capital increase of “Monbat Holding Germany” GmbH (parent company
to EAS Germany GmbH (“EAS”), to a full amount of 1 800 000 Euro.
The next utilization has been conducted on 26.03.2020 when “Monbat” AD has
taken part in the capital increase of “Monbat Holding Germany” GmbH (parent company
to EAS Germany GmbH (“EAS”), to a full amount of 200 000 Euro.
The next utilizations have been conducted on 02.04.2020, 29.04.2020, 13.05.2020
and on 06.08.2020 when “Monbat” AD has taken part in the capital increase of “Monbat
Holding Germany” GmbH (parent company to EAS Germany GmbH (“EAS”), to a full
amount of 700 000 Euro.
The next utilizations have been conducted on 27.10.2020, 06.11.2020 and on
11.12.2020 when “Monbat” AD has taken part in the capital increase of “Monbat Holding
Germany” GmbH (parent company to EAS Germany GmbH (“EAS”), to a full amount of
400 000 Euro.

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The next utilizations have been conducted on 07.01.2021 and on 22.02.2021 when
“Monbat” AD has taken part in the capital increase of “Monbat Holding Germany” GmbH
(parent company to EAS Germany GmbH (“EAS”), to a full amount of 250 000 Euro.
The next utilizations have been conducted on 12.04.2021 and on 28.05.2021 when
“Monbat” AD has taken part in the capital increase of “Monbat Holding Germany” GmbH
(parent company to EAS Germany GmbH (“EAS”), to a full amount of 250 000 Euro.
The next utilization to the amount of 4 100 00 EUR has been conducted in 2021
when “Monbat” AD acquired 23.30% of the share capital of “Societe Nouvelle des
Accumulateurs Nour”.
Final utilization has been conducted in 2022 to the amount of 1 310 438 EUR
(representing only partial amount for the acquisition of the additional shares) when
“Monbat” AD acquired at total 60% of the share capital of “Societe Nouvelle des
Accumulateurs Nour.
11. Analysis of the ratio between the achieved financial results reflected in the
financial statement for the financial year, and previously published forecasts for
these results
The Company has not published a forecast for 2022 on an individual basis.
12. Analysis and assessment of the policy concerning the management of the
financial resources with indication of the possibilities for servicing of the
liabilities, eventual threats and measures that the issuer has undertaken or is to
undertake with a view to eliminate them
Management of the financial resources is subject to the requirement of achieving
maximum efficiency with the simultaneous observance of agreed payment terms both with
suppliers and customers. This means the predominant use of own funds which leads to
lower financial costs. As a result of such policy related to managing the financial resources,
there is reduction in the period for collection of receivables compared to the period for
payment of liabilities. This leads to an effective increase of the cash in the entity and to
the possibility for the investment costs to be financed without additional financing from
banks, which reduces the interest expense. On the other hand, there are finance reserves
from unused credit lines, which could be used for both current and investment costs which
maintains high liquidity of payments.
13. Assessment of the possibilities for realization of the investment intentions,
indicating the amount of the available funds and stating the possible changes in
the structure of the financing of this activity

54
In 2023 the management of MONBAT AD plans to implement an investment
program as follows:
Table No 19
Investment Program of Monbat 2023 BGN EUR
Monbat AD
Capacity increase 2 068 595 1 057 656
Increase in production effectiveness and quality 1 072 076 548 144
Improvements of infrastructure 1 511 795 772 969
Development of new products 752 017 384 500
Total for Monbat AD 5 404 482 2 763 268
Group level projects related to software
enhancements and other trainings 1 297 316 663 307
Total investment program 2023 6 701 797 3 426 575
14. Information about occurred during the reporting period changes in the
base principles for management of the issuer and its economic group
There is no change occurred in the base principles for management of the company.
15. Information about the main characteristics of the applied by the issuer
internal controls risk management systems in the process of preparation of the
financial statements
The company has a functioning internal control and risk management system /ICRM
system/ that guarantees the efficient functioning of reporting and information disclosure
systems. The ICRM system was created and functions also with a view to identify relevant
business risks and managing them. Senior management has the main responsibility and
role in terms of developing the internal control and risk management system. It performs
both managing, directing and ongoing monitoring function.
The ongoing monitoring of controls by senior management serves the purpose to
assess whether the ICRM system is still suitable for the company in a changed
environment, whether it acts as expected and whether it is periodically adjusted to
changed conditions. Evaluation of selected areas carried out in this context as a
responsibility of the senior management complies with the priorities of the company.
Evaluation is also proportionate to the characteristics of the company and the impact of
the risks identified.
The senior management reports to the audit committee on the main characteristics
of the ICRM system and also on key issues, including main incidents established and the
respectively approved or applied corrective measures.
16. Information on the changes in the composition of the Board of Directors
in 2022
In 2022, there is no change in the Board of Directors.
As of at 31.12.2022 - members of the Board of Directors are:
1. Chavdar Danev - Chairman of the Board of Directors
2. Petar Petrov - member of the Board of Directors
3. Evelina Slavcheva - member of the Board of Directors
4. Florian Huth - member of the Board of Directors
5. Petar Bozadjiev - member of the Board of Directors
6. Kyle Anderson - member of the Board of Directors
7. Viktor Spiriev - Executive member of the Board of Directors

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As of December 31, 2022, the Company was represented by Viktor Stanimirov
Spiriev - Executive Director and Petar Petrov - Procurator.
17. Information on the amount of the remunerations, rewards and/or the
benefits of everyone of the members of the management and control bodies for
the fiscal year under review, paid by the Company and its subsidiaries,
irrespective of whether they have been included in the issuer’s expenses or rise
from profit distribution, including:
a) received amounts and non-monetary remuneration;
b) contingent or deferred remuneration occurred during the year, even if the
remuneration is due in a later period;
c) amount owed by the issuer or its subsidiaries for payment of pensions,
retirement benefit or other similar compensations:
In 2022, the members of the Board of Directors of MONBAT AD received remuneration as
management personnel from subsidiaries of MONBAT AD as follows:
Table No 20
Name Position Gross BGN Net BGN
1 PETER BOZADZHIEV Monbat Holding GmbH 215 000 215 000
2 PETAR PETROV START AD 76 000 68 400
3 FLORIAN HUTH Monbat Holding GmbH 198 000 198 000
18. Information about the owned by the members of the management and of
the control bodies, procurators and the senior management shares of the issuer,
including the shares held by anyone of them separately or as a percent from the
shares of each class, as well as provided to them options on securities of the
issuer by the latter – type and amount of the securities over which the options
have been set up, price of exercising of the options, purchase price, if any, and
term of the options
As of 31.12.2022 there are no shares of the capital of Monbat AD held by members
of the Board of Directors.
19. Information about the known to the company agreements (including also
after the fiscal year closing) as a result of which changes may occur at a future
time in the owned percent of shares or bonds by current shareholders and
bondholder
The management of the company does not have any information about agreements
which may lead to future change of ownership of shares by current shareholders.
20. Information about pending legal, administrative or arbitration
proceedings relating to issuer’s liabilities or receivables at the amount of at least
10 percent of its equity; if the total amount of the issuer’s liabilities or
receivables under all initiated proceedings exceeds 10 per cent of its equity,
information shall be submitted for each procedure separately
There are no pending legal, administrative or arbitration proceedings relating to
the issuer’s liabilities or receivables at the amount of at least 10 percent of its equity.

56
21. Information about the investor relations director
Daniela Ilcheva Peeva
Tel. +359 2 9882413 ; e-mail: investorrelations@monbat.com
1407 Sofia, 32 A Cherni vrah Blvd., fl. 4
22. Other non-financial information
A. ECOLOGY
MONBAT AD has a responsibility towards the environment, being the largest
producer of accumulator batteries in Bulgaria and a dynamically developing public
company. The management of MONBAT AD considers the activities directed towards
pollution prevention or reduction aimed at achieving a maximum level of human health
and environmental protection as a major priority and a crucial factor in the long-term and
sustainable development. It is the company’s long -standing practice to provide clear and
accurate environmental information on its products, services and activities to customers,
suppliers and the general public.
The management of MONBAT AD makes efforts to reduce the company’s impact on
the environment through:
• effective use of electricity and heat power/thermal energy;
• minimizing and recycling of waste;
• preventing pollution through reducing and minimizing of detrimental
emission in the air and water;
• using the best available techniques and best management practices when
expanding the production;
• internal monitoring regarding air, water and soil pollution;
Self-control system - the establishment and operation of an internal control system
is designed to achieve continuous compliance with the environmental, health and safety
regulations based on an Integrated Management System. The self-control system
evaluates the efficiency and effectiveness of the management system and the operations
of MONBAT AD in general.
Pursuant to the requirements of the Law for Healthy and Safe Labor Conditions and
the respective subordinate legislation, MONBAT AD has developed an emergency plan to
carry out rescue and emergency activities in case of disasters, emergencies and accidents
which may occure in the production process. The purpose of the protection plan is to
preventively ensure the necessary materials, equipment and resources in order to
effectively prevent the consequences of accidents; preparation of the personnel on the site
for action; notification and preparation of the personnel; managing the personnel’s
activities; procedures for putting the plan into action and informing the competent
authorities; means and procedures for notifying, when possible, the endangered
population near the site; procedure for carrying out the relevant rescue and emergency
activities on the territory of the site; procedures for restoring the activities on the site;
ensuring the necessary measures for recreation of the environment.
The development strategy of Monbat AD includes participation in long-term socially
useful projects within the environment protection area. The Company has a system for
separate waste collection and disposal via building a system of containers for collecting
old accumulator batteries through the distributors of Monbat AD. Waste batteries are
among the widespread harmful waste and the company significantly contributes to the
environmental protection by collecting, neutralizing and recycling such batteries. The
recycled materisls, e.g. lead and polypropylene, are re-used in the production of new

57
batteries and thus waste has been efficiently utilized. The company has established the
only individual system in Bulgaria for collecting old batteries and operates under its own
Program for management of used lead-acid batteries.
The Company has successfully passed the certification process under ISO 14001 -
an internationally recognized standard defining how a company can create and implement
an effective management regarding the environment’s protection. ISO 14001 focuses on
the delicate balance between maintaining efficiency and reducing environmental impact
by engaging all levels of the organization to achieve both objectives.
B. HUMAN RESOURCES
The number of the employees of the Company as of 31.12.2022 is 428 (2021:
516). As Monbat AD is a manufacturing entity, focus is kept on employees involved in the
production cycle, providing relevant administrative support.
COMPENSATIONS AND BENEFITS
The structure of remuneration packages differs among the organizational hierarchy
and depends both on the specific position and on the individual’s personal contribution to
the value creation in the group. For all employee grades there are predefined ranges of
remuneration. The remuneration of each employee is structured within these limits based
on their personal experience, skills, knowledge and performance. Making employees part
of the company's economic success, Monbat offers wages that are usually above the
average level.
PROFESSIONAL DEVELOPMENT
Monbat AD enhances the potential for professional growth and the career
development for all employees through training courses and the opportunity to study while
working.
An additional supplement to the development of employees is the mentoring
program for practical knowledge sharing and personal development planning. This is based
on assessment results and its main goal is to close the gap between expectations and
actual performance.
Sometimes even the smallest project can bring you together with colleagues and
inspire you to take a step forward. Monbat AD actively supports all professional and
personal development, as well as enhancement opportunities for its employees.
GLOBAL WORK
Exciting opportunities can loom up at your current place of residence or guide you
to a new home via Monbat AD’s relocation program. For all relevant positions the group
supports its candidates with relocation packages based for the respective position.
WORK-LIFE BALANCE
Individual needs and flexible working conditions complement the personal approach
throughout the job-matching process.
Placing quality and responsibility at the heart of its operations, Monbat AD always
chooses to support to the utmost its employees in their efforts to deliver high performance,
regardless of their field of work.

58
HEALTH MANAGEMENT
Regardless of position, location or age, being healthy and active is considered a
core value within the group. As a result, Monbat AD takes illness prevention and health
promotion seriously.
The Company has successfully passed the certification process under ISO 45001 -
an internationally recognized standard for occupational health and safety.
C. NON-FINANCIAL DISCLOSURE
In compliance with the requirements of Directive 2014/95/EU of the European
Parliament for reporting non-financial information and the provisions of the Accounting
Act, an obligation occurs for some of the companies to publish non-financial information
independently or as part of the as part of the annual activity reports.
This obligation is essential for large entities of public interest, which as of December 31 of
the reporting period have surpassed the criteria for average number of employees during
the financial year of 500 or more employees. Entities of public interest are: public
companies and other issuers of securities; lending institutions; financial institutions;
insurers and re-insurers, pension security companies and funds managed by pension
security companies; investment intermediaries; commercial companies, which produce,
transfer and sell electric and heating power; commercial companies importing,
transferring, distributing and transiting natural gas; commercial companies, which provide
water supply, sewerage and telecommunication services; “Bulgarian State Railways” EAD
and its subsidiary companies.
Entities which have net sales revenue of 76 million BGN or carrying amount of the
assets of 38 million BGN have been defined as large entities.
Based on the principles of the Accounting Act, there is no obligation for Monbat AD
to report non-financial information on a stand-alone basis or as part of the Management
Report. The non-financial declaration will be presented as part of the Annual Consolidated
report of the Monbat Group.
XII. CHANGES IN THE PRICE OF THE COMPANY’S SHARES FOR THE PERIOD
The company considers that there is no other information that is not publicly
disclosed by the company and which would be important for shareholders and investors in
making an informed investment decision.

59
XIII. INFORMATION UNDER APPENDIX NO 3 OF ORDINANCE NO 2 OF FSC
1. Information for securities which are not listed on the regulated
market in Bulgaria or other EU member state
As of 31.12.2022 the capital of MONBAT AD amounts to BGN 39 000 000, divided
into 39 000 000 ordinary, registered, dematerialized shares with nominal value of BGN
1.00 each of them. All shares of the company are one class and each share is entitled to
one vote at the general assembly of shareholders, the right to receive dividend and a
liquidation quota, proportionate to the nominal value of the share. All 39 000 000 shares
were registered for trading on the on the "Premium" Market segment from the BSE. No
other securities which are not listed on the regulated market in Bulgaria or other EU
member state.
2. Information on the direct and indirect holding of 5 or more percent of the
voting rights in the company’s general assembly, including data about the
shareholders, the amount of their holding and the way the shares are owned
As of 31.12.2022 the capital structure of MONBAT AD is the following:
Тable No 21
Name of the shareholder Number of shares Percentage of the
capital
PRISTA OIL HOLDING EAD, Sofia 16 666 371 42.73%
MONBAT TRADING Ltd., Sofia 2 752 800 7.06%
PRISTA HOLDCO COOPERATIEF U.A. 8 103 758 20.78%
UPF Doverie 2 582 864 6.62%
MUPF Allianz 2 105 403 5.40%
Other individuals and legal entities 6 788 804 17.41%
Reacquired own shares (27 000) (0.07%)
Prista Oil Holding EAD indirectly owns 49.8% of the voting rights in the General
Assembly of MONBAT AD.
3. Information regarding the shareholders with special control rights and
description of these rights
MONBAT AD does not have any shareholders with special control rights.
4. Agreements among the shareholders, which are known to the company
and which may result in limitations over the transfer of shares or the voting right
The Company is not aware of agreements among shareholders which may result in
limitations over the transfer of shares or the voting right.
5. Agreements between the company and its management bodies or
employees for payment of compensation upon leaving or dismissing without
legal basis or upon termination of the employment relationship for reasons
related to tender offering.
There are no agreements between MONBAT AD and the members of the Board of
Directors and employees of the company for payment of compensation upon leaving or
dismissal without legal basis or upon termination of the labor relations for reasons related
to tender offering.
.......................................
30.03.2023
Petar Petrov
/Procurator/

60
INFORMATION UNDER ART. 10, Item 4 of ORDINANCE No 2 OF 09.11.2021
Electronic link to the place on the website of the public company where the internal
information under Art. 7 of Regulation (EU) No 596/2014 of the European Parliament and
of the Council of 16 April 2014 on market abuse (Market Abuse Regulation) and repealing
Directive 2003/6 / EC of the European Parliament and of the Council and Directive 2003
(124 / EC, 2003/125 / EC and 2004/72 / EC of the Commission (OJ L 173/1 of 12 June
2014) (Regulation (EU) No 596/2014) on the circumstances of the past year, or an
electronic link to the news agency or other media chosen by the issuer, through which the
company publicly discloses inside information.
During the period 01.01.2022 - 31.12.2022 MONBAT AD discloses inside information
through the information platform x3news.com, available at - http://www.x3news.com as
well as on the corporate website of the company, available at
https://www.monbatgroup.com/bg
.......................................
30.03.2023
Petar Petrov
/Procurator/

ii
CORPORATE GOVERNANCE
DECLARATION
OF "MONBAT" AD
PURSUANT TO THE REQUIREMENT OF
THE PROVISIONS OF ART. 100N, PARA.
8 OF THE LAW ON PUBLIC OFFERING
OF SECURITIES

1
1. Information on whether MONBAT AD complies as appropriate with the
Corporate Governance Code, approved by the Deputy Chairman, or another
corporate governance code
Monbat AD complies as appropriate with the National Corporate Governance Code
and operates in full compliance with the principles and provisions of the Code.
2. Information regarding the corporate governance practices, which are
applied by MONBAT AD in addition to the National Corporate Governance
Code
Monbat AD does not apply other corporate governance practices in addition to the
National Corporate Governance Code.
3. Explanation by MONBAT AD as to which parts of the National Corporate
Governance Code does not comply with and as to what the grounds for this
non-compliance are
In 2022 the activities of the Board of Directors of "Monbat" AD were implemented
in full compliance with the regulatory requirements set out in the Law on Public Offering
of Securities and the respective implementing by-laws, in its Articles of Association and
the National Corporate Governance Code. The corporate Board of MONBAT AD considers
that there are no parts of the National Corporate Governance Code that the company does
not comply with.
The National Corporate Governance Code is being applied subject to the “ comply
or explain” principle . This means that the company complies with the Code and in case
of any deviation its corporate board should explain the reasons for that.
CHAPTER ONE – CORPORATE BOARDS
MONBAT AD has a one-tier management system. The company is being managed
by a Board of Directors including the following members as at 31.12.2022:
Chavdar Danev – Chairman of the Board of Directors
Petar Petrov – Member of the Board of Directors
Evelina Slavcheva – Member of the Board of Directors
Florian Huth – Member of the Board of Directors
Peter Bozadzhiev – Member of the Board of Directors
Kyle Anderson– Member of the Board of Directors
Viktor Spiriev – Executive member of the Board of Directors
Functions and Obligations
The Board of Directors directs and controls the company in a responsible and
independent manner according to the vision, goals and strategies of the company and in
the best interest of all shareholders.
The Board of Directors monitors the performance of the company on a quarterly
and yearly basis and initiates changes in the management of its activities, when necessary.
The Board of Directors treats all shareholders equally, acts in their interest and in
a diligent manner.
The members of the Board of Directors base their actions on common principles of
integrity and managerial and professional competence. The Board has adopted and follows
an Ethics Code.
The Company has an integrated and functioning risk management system,
including internal audit as well as a financial-information system.

2
The Board of Directors has established and controls the integrated functioning of
the financial and accounting systems.
The Board of Directors provides guidelines, approves and controls the
implementation of the company's business plan, the material transactions and all other
operations and actions required by the company's by-laws.
Pursuant to the requirements of the Law on Public Offering of Securities the Board
of Directors monitors all material transactions, making them approved. In case of
transactions that individually or collectively exceed the thresholds specified under Art. 114,
para. 1 of the Law on Public Offering of Securities, the Board of Directors prepares a
motivated report and adopts a decision to convene a General Meeting of Shareholders,
where to be authorized by the shareholders to perform these transactions.
In 2022 such transactions have not been executed and therefore no decision of the
General Assembly for approval thereof has been adopted.
The Board of Directors reports on its activities to the General Meeting of
Shareholders by presenting for approval by the shareholders the Annual management
Report, the Report on the Implementation of the Remuneration Policy as well as any other
enclosures and documents, required by the legislation in force.
Election and Removal of Members of the Board of Directors
The General Meeting of Shareholders elects and removes members of the Board of
Directors in compliance with the law and the company's Articles of Association, while
respecting the principles of continuity and sustainability of the Board of Directors' work.
Upon proposing new members of the Board of Directors, the principles of
compliance of the candidates' competencies with the nature of the company's activities
pursuant to the National Corporate Governance Code are being followed.
All members of the Board of Directors meet the legal requirements for taking up
their duties. The functions and duties of the corporate board as well as its structure and
competence are in accordance with the requirements of the Code.
The management contracts concluded with members of the Board of Directors
specify their duties and tasks, the criteria for their remuneration, their duties of loyalty to
the company and the grounds for dismissal.
During the financial year under review MONBAT AD has applied the Remuneration
policy for the members of the Board of Directors in compliance with the legal requirements
for public companies, the objectives, long-term interests and the strategy for the future
development of the company as well as in compliance with its financial and economic
standing in the context of the national and European economic situation, while respecting
the recommendations of the National Corporate Governance Code.
In 2022, the company has consistently complied with Remuneration Policies,
namely:
After the amendments to Ordinance No 48 of the FSC, the company has
implemented its Remuneration policy to the Board of Directors in compliance with the
regulatory requirements and has adopted an amendment to it by a decision of the General
Assembly on 18.09.2020.
The remuneration of the members of the Board of Directors and information on
their amount are part of the annual individual Management Report of the Board of Directors
during the reporting year. The Company discloses a report on the implementation of the
remuneration policy which is presented for approval by the General Meeting of
Shareholders.
Structure and Competence
The number of members and the structure of the Board of Directors is specified in
the company’s Articles of Association.
The composition of the Board of Directors is structured in a way that ensures the
professionalism, independence and impartiality of its resolutions related to the

3
management of the company. The functions and obligations of the corporate board as well
as its structure and competence are in compliance with the requirements of the Code.
The Board of Directors ensure the tasks and obligations of its members are properly
distributed. The Board of Directors consists of:
• Executive member of the Board of Directors – engaged with the current
representation of the company and the day-to-day management of the business
processes;
• Chairman and Vice chairman of the Board of Directors – engaged with the
corporate vision and expanding the markets.
• The independent members of the Board of Directors control the functions carried
out by executive management and contribute effectively to the company's
performance in compliance with the interest of all shareholders and in respect of
their rights.
The Chairman of the Board of Directors is not an independent director, as the same
is representative of the majority shareholder of the company, and in 2022 performed the
functions of the Executive Director. Given the current capital structure of the company,
the members of the Board of Directors deem appropriate, the Chairman of this body not
to be an independent director.
The competence, rights and responsibilities of the members of the Board of
Directors must comply with the law and the company's by-laws and follow good
professional standards and practice.
The members of the Board of Directors have the knowledge and experience
required for the position they take. Information on the professional qualifications and
experience is disclosed yet with the proposal for election of a member of the Board of
Directors and the latter I s part of the written materials for the general meeting.
After election of the new members of the Board of Directors they are being
introduced to the basic legal and financial issues related to the company's activities and
performance.
Continued professional training of members of the Board of Directors is their
constant priority.
The members of the Board of Directors are able to devote sufficient time to carry
out their tasks and duties although that the company's by-laws do not limit the number of
management positions the members of the Board are allowed to hold. These circumstances
are being monitored when nominating and electing new members of the Board of
Directors.
The election of members of the Board of Directors is done through a transparent
procedure which ensures timely and complete information regarding the personal and
professional qualities of the nominees. As part of the materials for the general meeting
where the election of a new member of the Board of Directors is proposed, are presented
all declarations, criminal record certificate and CV of the nominee required by the Law on
Public Offering of Securities and the Commercial Act. When electing members of the Board
of Directors, the nominees confirm by means of a declaration or personally to shareholders
the correctness of the data and information presented. The election procedure is conducted
in open voting and the votes "For", "Against" and "Abstained" are being counted. The
voting results are announced with the minutes of the General Meeting of Shareholders.
The number of consecutive terms of the members of the Board of Directors provides for
the company's efficient functioning and compliance with legal requirements. The
company’s by-laws do not limit the number of consecutive terms of the independent Board
members but this fact is being observed in the proposal for election of independent
members.

4
Remuneration
The Board of Directors develops clearly defined and specific remuneration policy
with regard to its members which is subject to General Meeting of Shareholders' approval.
The policy defines the principles of setting up the remunerations' amount and structure.
In accordance with the legal requirements and best corporate governance practices the
amount and structure of remuneration account: the obligations, workload, commitment
and involvement of the members in the company's management, as well as the
contribution of each member of the Board of Directors in the operations and results of the
company; the possibility to select and retain qualified and loyal members of the Board of
Directors; the necessity for conformity of the interests of the Board members and the
long-term interests of the company.
The remuneration of the independent directors has been mostly basic
remuneration, without additional incentives, and has reflected their participation in
meetings, as well as the performance of their tasks regarding the regulation of the
operation of the executive management.
Description of the terms and conditions in the Remunerations Policy,
effective since 18.09.2020
Monbat AD shall disburse to the Members of the Board of Directors fixed
remuneration, the particular amount of which shall be approved by the General Meeting
of the shareholders of the Company and the following shall be taken into consideration:
• the obligations and the contribution of eac h Member of the Board in the Company
operations and the Company results;
• the possibility for recruitment and retention of qualified and loyal Members of the
Board;
• the existence of consistency in the interests of the members of the Board and the
long-term interests of the Company.
For 2022, the amount of the fixed monthly remunerations of the members of the
Board shall be determined as follows: net monthly remuneration of the members of the
Board of Directors, to the amount of 3,000 (three thousand) BGN. The net monthly
remuneration of members of the Board of Directors, who are awarded the management
and representation of the Company shall be determined with a decision of the General
Meeting of the shareholders in the Company.
Monbat AD may pay the members of the Board of Directors additional variable
annual remuneration. The variable remuneration is an element of the total remuneration
in the form of royalties/bonuses and shall be paid on the grounds of the criteria for
evaluation of the performance of the activity.
Monbat AD may pay the members of the Board of Directors additional variable
annual remuneration in the form of shares or share options. The application and the
performance of this provision shall be deferred until such time that a particular scheme
for allocation of additional variable remuneration in the form of shares or stock options
with a particular decision of the General Meeting is adopted.
The amount of the annual variable remuneration disbursed to the Members of the
Board of Directors shall not exceed the sum total of 1,500,000 (one million and five
hundred thousand) BGN for the whole Board of Directors.
Other than their apportioned part of the variable remuneration, additional bonuses
may also be disbursed to the Executive Director, the amount of which shall not exceed
300% (three hundred percent) of the fixed annual gross remuneration of the respective
member for the respective year
The variable remuneration of the member of the Board of Directors of Monbat AD
shall be accrued and paid in compliance with the following criteria:
• In conjunction with the disbursement of the variable remuneration, financial and
non-financial criteria for the results achieved shall be used. The criteria for disbursement
of variable remuneration are objective and measurable and shall include indicators which

5
are significant for the long-term operation of the Company, and the criteria shall be
measures for a period of three years (for example the years 2020, 2021 and 2022).
Defining and implementation of the criteria, followed on the basis of the increase of the
value of a particular indicator over the course of a given period, shall be based on the
Compound Annual Growth Rate (CAGR) method. The criteria shall follow the long-term
strategic planning of the Company, as communicated with the market and the public, and
shall be selected in such a manner that they contribute to the stability and performance
of the strategy of the Company over a long term.
• The criteria bound with financial indicators shall be selected in compliance with
the manner that they reflect the creation of a value by the Company and how this refers
to market capitalization. The financial indicators may include, but shall not be limited to,
the criteria on the basis of the consolidated profit before taxes, interest, and amortization
(EBITDA), growth of consolidated income, consolidated profit, efficiency, and value of a
new business.
The non-financial criteria are selected in compliance with the strategy of the
Company to contribute to stable, inclusive, and sustainable practices in the economy and
in society. The non-financial criteria may include, but shall not be limited to, criteria related
to clients, employees (such as engagement, leadership, talent development and diversity),
length of service in the Company and the Company Group, operational efficiency,
corporate social responsibility and sustainable environment, compliance with the
applicable rules and procedures, stable and sustainable development of the Company and
the Group in economic, social, and environmental aspect.
The Board of Directors on a daily basis should determine the values of performance
indicators for each calendar year at the start of the same year on the basis of an analysis
of the approved budget and strategy for the following three-year period and offers them
for approval by the General Meeting of the shareholders.
The assessment regarding the implementation of the financial criteria for results
achieved shall be performed on an annual basis by the Board of Directors on the basis of
the consolidated financial statement of the Company, certified by a registered auditor. The
assessment regarding the implementation of the non-financial criteria for the results
achieved, shall be performed on an annual basis by the Board of Directors on the basis of
an analysis of the results achieved, based on the assigned non-financial criteria.
After performance of the assessment, the Board of Directors shall propose on an
annual basis to GMS to determine a particular amount of the variable remuneration for
the previous year, for each member of the Board of Directors, including for the Executive
Director.
The General Meeting of shareholders shall have the right with its own decision to
adjust the amount of the variable remuneration designated for disbursement to a
particular Member of the Board of Directors in case the Member of the Board of Directors
is responsible for a conduct, which was harmful to the Company to a significant extent.
The General Meeting of the shareholders may stop the disbursement of up to 50%
of the outstanding or non-provided variable remuneration to a particular Member of the
Board of Directors in the following cases:
• significant impairment of the financial status of the Company on a consolidated
basis, which is the result of actions/failure to act by the respective member of the Board
of Directors;
• the respective member of the Board of Directors shall take part, or shall be
responsible for conduct which has resulted in significant losses for the Company, or any of
its subsidiaries;
• in case of regulatory changes which have necessitated the limitation of the
amount of the variable remuneration, subject to disbursement.
With a decision of the General Meeting of the shareholders, return of up to 100%
of paid or provided variable remuneration to a particular member of the Board of Directors
may be requested in the following cases:

6
• the respective member of the Board of Directors has performed actions which are
considered as abuse or fraud, including crimes against property against the Company and
its subsidiaries;
• specific conduct which has resulted in a significant (reputational) harm to the
Company or any of its subsidiaries;
• the respective member of the Board of Directors shall take part, or shall be
responsible for conduct which has resulted in significant losses for the Company, or any of
its subsidiaries;
• the variable remuneration has been provided on the basis of data presented by
the respective member of the Board of Directors, which have subsequently proven to be
untrue.
With the purpose of achieving stable financial results, the disbursement of 40% of
the variable remuneration shall be rescheduled into equal instalments for a period of 3
years, starting as of the date of the decision by GMS.
As stated above, disclosure of information on the remunerations of the members
of the Board of Directors is done in accordance with the law and the company's by-laws –
by means of disclosing the Report on the implementation of the Remuneration Policy and
the annual Management Report.
Shareholders have easy access to the adopted company policy concerning the
determination of remunerations and bonuses of the board members as well as to
information about the annual remunerations and variable incentives received by the
members through the selected media for information disclosure and the company’s
website.
Conflict of Interests
The members of the Board of Directors avoid and do not admit any real or potential
conflict of interests. The procedures for avoidance and disclosure of conflicts of interests
are stipulated in the company's by-laws.
Members of the Board of Directors immediately disclose conflicts of interest and
provide shareholders access to information about transactions between the company and
members of the Board of Directors or related parties by presenting a declaration under
Art. 114b of the Law on Public Offering of Securities.
The Board of Directors has not developed a particular written procedure for
avoiding conflicts of interest in case of transactions with interested parties and information
disclosure in case of such transactions but controls the execution of material transactions
by means of voting and approving such transactions.
Committees
There is an audit committee functioning in the Company. With regard to the
requirements of the legislation in force and based on the criteria set by the legislation, the
Board of Directors proposes to the company’s General Meeting of Shareholders an audit
committee with a composition that meets the new legislative requirements and the
company’s needs.
The Audit Committee is established on the basis of written terms of reference,
scope of tasks, way of operation and reporting procedures detailed in the Statute of the
Audit Committee.
CHAPTER TWO – AUDIT AND INTERNAL CONTROL
The Board of Directors of Monbat AD is being assisted by an audit committee. The
Audit Committee motivates in writing its proposal for selection of an auditor before the
General Assembly, guided by the established requirements for professional conduct.

7
The Board of Directors ensures compliance with applicable independent financial
audit law. Regarding the recommendation to selection of an external auditor, the audit
committee of the company is led by the rotation principle.
The audit committee supervises the internal audit process and monitors the overall
relations with the external auditor, including the nature of non-audit services, provided by
the auditor of the Company.
The company has developed and applies an internal control system that also
identifies risks the company might face in its activities and fosters their efficient
management. This system also ensures effective functioning of the reporting and
disclosure of information systems. Description of the major characteristics of the internal
control and risk management systems is presented under item 4 - Description of the main
characteristics of the internal control system and the risk management system of the
issuer in connection with the financial reporting process of this Corporate Governance
Declaration.
CHAPTER THREE – SHAREHOLDERS RIGHTS’ PROTECTION
The Board of Directors guarantees equal treatment of all company’s shareholders,
including minority and foreign investors, protects their rights and facilitates their exercise
within the limits permitted by applicable law and in accordance with the company’s Articles
of Association.
The invitation for the General Meeting of Shareholders contains all the required
information under the Commercial Act and the Law on Public Offering of Securities and
additional information on exercising the right to vote and the possibility to add new items
to the agenda pursuant to Art. 223a of the Commercial Act.
The Board of Directors provides information to all shareholders on their rights by
the information posted on the company's website. The disclosed Articles of Association of
the company and the invitation for any particular general meeting of shareholders.
Shareholders may exercise their right to vote by proxy or by correspondence.
Exercising the right to vote by correspondence was extremely practical in the context of
the Covid-19 coronavirus crisis, which imposed physical and social distance.
General Meeting of Shareholders
All shareholders are being informed about the rules under which the General
Meetings of Shareholders shall be convened and held, including voting procedures by
means of the Company’s Articles of Association and the invitation for any particular general
meeting of the shareholders.
The corporate Board provides sufficient and timely information concerning the date
and venue of the General Meeting, as well as detailed information on the issues to be
discussed and decided on at the meeting.
The invitation and the materials for the General Meeting of Shareholders is being
disclosed through X3News, the company website, and the corporate profile of MONBAT AD
in Facebook thus reaching the public, the Financial Supervision Commission and the
regulated securities market. After presenting the invitation and the materials for the
General Meeting of Shareholders they are available on the website of the company. The
invitation to the General meeting of shareholders is also presented to the Central
Depository.
As obvious form the minutes for the General Meetings of Shareholders of the
Company, the Board of Directors and the elected chairman ensure that each shareholder
is in possession of their right to express opinion and ask questions during the General
Meeting of Shareholders, corporate management should.
Shareholders holding voting shares have the opportunity to exercise their voting
rights directly or through the use of a proxy or by correspondence at the General Meeting
of Shareholders.

8
As part of the materials for the General Meeting of Shareholders the Board of
Directors provides a sample of a proxy, Proxy voting Rules and Rules for voting through
correspondence.
Pursuant to the company’s Articles of Association it is possible for the general
meeting of the company’s shareholders to be also be held by using electronic means.
However, this method of exercising the right to vote is not yet used, since it would
make the process of convening and holding a general meeting extremely expensive and
in view of the small number of shareholders who participate annually in the work of the
meeting it appears that the use of this means is economically unjustified.
The Board of Directors exercises effective control and ensure that necessary
arrangements are made to facilitate voting by authorised representatives (proxies) in
accordance with the instructions of the shareholders and in compliance with the law. The
Board of Directors appoints an elected commission that registers shareholders for any
particular session of the General Meeting of Shareholders and proposes to the General
Meeting a Chairman, Secretary and Teller of the votes. The Chairman and the Secretary
of the General Meeting closely monitor the lawful conduct of the General Meeting, including
the voting of authorized persons. Upon finding differences between the will of the principal
and the vote of the authorized person this fact is recorded in the minutes and the will of
the principal is respected.
The Board of Directors has prepared and adopted a set of documents for the
organization and holding of regular and in extraordinary session of the General Meeting of
Shareholders that ensure equal treatment of all shareholders and the right of each
shareholder to express its views on the items in the agenda for the General Assembly.
The Board of Directors organizes the rules and procedures for conduct of the
General Meeting of Shareholders in a manner which does not make the voting procedure
unnecessarily difficult or expensive.
The Board of Directors encourages the participation of shareholders at the General
Meeting of Shareholders and has provided a possibility for remote exercising the right to
vote in the General Assembly.
The members of the board of Directors attend the sessions of the General Meeting
of shareholders.
Written materials for the General Meeting of Shareholders
The Texts in the written materials related to the agenda of the General Meeting of
Shareholders are clear, accurate and do not to mislead the shareholders. All proposals
concerning major corporate events are presented as separate items on the agenda of the
General Meeting of Shareholders, including the proposal for the distribution of profit.
The company maintains a special section on its website www.monbatgroup.com
describing the rights of shareholders and the rules and procedures for their participation
in the General Meeting of Shareholders.
The Board of Directors co-operates with shareholders, who have the right under
law, in placing additional items on the agenda of the General Meeting and proposing
additional decisions on items already on the agenda by undertaking all necessary legal
and factual measures to announce the additionally added items on the agenda for a
General Meeting that has already been convened.
The Board of Directors guarantees the right of all shareholders to be informed on a
timely basis about the decisions that have been made at the General Meeting of
Shareholders by means of disclosing the minutes of the General Meeting of Shareholders
through the selected media agencies and posting the minutes on the company’s website.
Equal treatment of shareholders of the same class
Pursuant to the provisions of the Articles of Association all shareholders of the same
class are being treated equally.

9
The Board of Directors guarantees that enough information is given to the
shareholders about the rights all shares give before their acquisition by means of the
information posted on the company’s website as well as by having conversations and
personal meetings with the corporate board and/or with the Investor Relations Director.
Consultation between shareholders about main shareholder rights
The Board of Directors does not hinder shareholders, including institutional
investors, to consult each other on matters, related to their main shareholder rights in a
manner, which does not allow misuse.
Controlling rights shareholders' transactions and abusive transactions
The Board of Directors of MONBAT AD does not allow transactions of shareholders
with controlling rights, which violate the rights and/or legal interests of other shareholders,
including when the controlling shareholder is negotiating with themselves. When executing
such transactions it is necessary an explicit resolution of the Board of Directors as the
interested party does not have the right to vote.
In case of any indication for exceeding the statutory thresholds under art. 114,
para. 1 of the Law on Public Offering of Securities the Board of Directors prepares a
motivated report and initiates convening and holding of a general meeting of shareholders
to vote the transactions.
In 2022 such transactions have not been executed and such procedures have not
been performed.
CHAPTER FOUR – DISCLOSURE OF FINANCIAL AND NON – FINANCIAL
INFORMATION
The Board of Directors has adopted a financial information disclosure policy in
compliance with legal requirements and the company's by-laws. In compliance with the
adopted policy the corporate board has created and supports a financial information
disclosure system
The information disclosure system guarantees equal access to information to the
addressees (shareholders, stakeholders and the investment community) and does not
allow for any abuse of inside information.
Inside information is disclosed in the statutory forms, order and terms through
selected media agencies. The Company benefits single point of disclosing information
electronically, thereby information reaches both in uncorrected form to the public, the FSC
and the regulated securities market. Information in uncorrected form and in the same
volume is published on the website of the company. Thus the executive management of
the company guarantees that the information disclosure system provides comprehensive,
timely, true and understandable information that allows for objective and well-informed
decision-making and assessment.
The Company announces annually corporate calendar which sets out specific dates
for regulated information disclosure and the disclosures related to convening and holding
a General Meeting of Shareholders.
The executive management and the Board of Directors promptly disclose
information about the capital structure of the company and agreements that lead to
exercising control, according to its information disclosure rules. Disclosure is made through
the means as provided by the Law on Public Offering of Securities and its implementing
by-laws as well as in compliance with the applicable European regulation.
The Board of Directors guarantees through the control exercised over the
implementation of the information disclosure policy that the rules and procedures under
which are conducted acquisition of corporate control and extraordinary transactions such
as mergers and sales of substantial part of the assets are clearly and timely disclosed.

10
Corporate management approves and controls together with the financial director
and IR director rules for preparation of annual and interim reports and the procedure for
disclosure of information.
The Company discloses nonfinancial information on consolidated base pursuant to
the Art. 49 of the Accounting Law .
The company has a website www.monbatgroup.com with approved contents, scope
and frequency of information disclosed. The content of the website is set in conformity
with the requirements of the National Corporate Governance Code. The company has an
English version of the corporate website with the same contents.
The Company periodically discloses information on the corporate governance.
The Board of Directors finds that, with its overall activities in 2022, it has
established preconditions for a sufficient transparency in its relations with current
shareholders of the company, potential investors, financial mass media and capital market
analysts.
CHAPTER FIVE – STAKEHOLDERS. SUSTAINABILITY
The Corporate board ensures effective interaction with the company's stakeholders.
This category includes certain interested parties who are directly influenced by the
company and who are in a position to influence the company themselves.
MONBAT AD identifies as stakeholders, interested in its activities, all
persons/entities which are interested in the economic prosperity of the company:
Customers, Workers and employees, creditors, Suppliers and other contracting parties,
local community and other interested parties.
Monbat AD regularly discloses non-financial information as well in relation to the
Corporate social responsibility policy adopted by the Board of Directors. The Company
annually reports to the Global Compact presenting a Communication on Progress by the
end of March on account of the previous year.
The company has developed the following documents:
1. Policy on Safety and Health at Work in Monbat AD;
2. Quality Policy;
3. Environmental Policy.
The company’s policy towards stakeholders is in compliance with the existing laws,
based on the principles of transparency, accountability and business ethics.
4. Description of the main characteristics of the internal control system and the
risk management system of the issuer in connection with the financial reporting
process
When describing the general characteristics of the internal control and risk
management systems it should be taken into account that neither the Law on Public
Offering of Securities nor the National Corporate Governance Code define internal control
framework to be followed by the public companies in Bulgaria. Therefore, for the purpose
of implementing the companies’ obligations under Art. 100m, para. 8 item 4 of the Law
on Public Offering of Securities to describe the general characteristics of the systems are
used the frames of the International Auditing Standard 315.
General description of the internal control and risk management systems
There is a functioning internal control and risk management system/the system/
which ensures the effective functioning of the reporting and information disclosure
systems. The system was built and functions in order to identify the risks that the company
might face in its operation and support their effective management. The Board of Directors
has the primary responsibility and role in terms of elaborating the internal control and risk

11
management system. The Board has both managing and guiding function as well as
ongoing monitoring function.
Ongoing monitoring on the part of the corporate board consists of assessment
whether the system is still suitable for the company in the changed environment, whether
it acts as expected and whether it is periodically adjusted to the changed conditions.
Assessment is proportionate to the characteristics of the company and the influence of the
risks identified.
Control environment
The control environment includes the general management and particular
management functions as well as the attitude, awareness and operations of the corporate
board responsible for the management in a broad sense and the responsible management
in terms of the internal control.
Risk valuation process in the Company
The risk valuation process on the part of the Board of Directors represents the basis
regarding the way the corporate board of the Company specifies the risks that need to be
managed.
The Board of the Company identifies the following types of risks relevant to the
Company and its operations: general (systematic) and specific (unsystematic) risks.
Systematic risks are related to the macro environment where the company
operates, therefore in most cases they are not subject to control by the management
team.
Unsystematic risks are directly relevant to the Company's operations and depend
mainly on the management. In order to minimize their effect the company relies on
increasing the efficiency of internal corporate planning and forecasting which provides
capabilities to overcome the possible negative consequences of a risk event that has
occurred.
The general plan of the company’s management for risk management focuses on
the unpredictability of financial markets and seeks to minimize potential adverse effects
on the financial position of the Company.
Each of the risks associated with the country - political, economic, credit, inflation,
currency – has its independent significance but their overall consideration and the
interaction between them form an overall picture of the economic fundamentals, market
conditions, competitive conditions in the country where the company operates.
A detailed description of the risks specific to the activities of MONBAT AD is
presented in the section MAIN RISKS THE COMPANY FACES of the annual activity report.
Information systems and related business processes essential for the financial
reporting and communication
The information system essential for financial reporting purposes, which includes
the accounting system, consists of procedures and documentation developed and
established to: initiation, reflecting, processing and reporting of transactions and
operations of the company (as well as events and conditions) and maintaining
accountability for the related assets, liabilities and equity; resolving problems with
incorrect processing of transactions, such as automated files for unspecified positions of
information and procedures followed for timely correction of detained unspecified
positions; processing and reporting on cases of circumventing the systems or tackling the
controls; transferring the information from the transactions processing systems in the
general ledger; covering the information which is essential for the financial reporting of
events and conditions, other than transactions and operations, such as amortization of
tangible and intangible assets and changes in collection of receivables; and ensuring that
the information required for disclosure by the applicable financial reporting framework is
collected, reflected, processed, summarized and that it is properly recorded in the financial
statements.

12
The communication on the part of the company of the roles and responsibilities in
terms of financial reporting and the related important issues, involves understanding of
the individual roles and responsibilities related to the internal control. Communication
includes such questions as the extent to which the accounting team understands how its
activities in the information system for financial reporting are related to the work of the
others and the means for reporting on exceptions to the corporate board.
Open communication channels help ensure that exceptions are reported and
respective actions are undertaken with this regard.
Current monitoring of the controls
Current monitoring of the controls is a process of evaluating the effectiveness of
the results from the internal control functioning over time. It includes timely valuation of
the controls effectiveness and undertaking the necessary remedial action. The corporate
board carries out current monitoring of the controls through ongoing activities, separate
valuations or a combination of both. Ongoing monitoring activities are often built into the
normal recurring activities of the company and include regular management and
supervisory activities.
5. Information under Article 10, Paragraph 1, Letters "c", "d", "f", "h" and "i" of
Directive 2004/25/EC of the European Parliament and of the Council of 21 April
2004 regarding take-over offers
5.1. Information under Article 10, Paragraph 1, Letter "c" of Directive
2004/25/EC of the European Parliament and of the Council of 21 April 2004
regarding take-over offers
Significant direct and indirect shareholdings (including indirect shareholdings
through pyramid structures and crossshareholdings) within the meaning of
Article 85 of Directive 2001/34/EC
As of 31.12.2022 the capital structure of MONBAT AD is the following:
Name of the shareholder Number of shares Percentage of the
capital
PRISTA OIL HOLDING EAD, Sofia 16 666 371 42.73%
MONBAT TRADING Ltd., Sofia 2 752 800 7.06%
PRISTA HOLDCO COOPERATIEF U.A. 8 103 758 20.78%
UPF Doverie 2 582 864 6.62%
MUPF Allianz 2 105 403 5.40%
Other individuals and legal entities 6 788 804 17.41%
Reacquired own shares (27 000) (0,07 %)
Prista Oil Holding and Monbat Trading are related parties and together they hold
49.8 % from the shares and voting rights.
5.2. Information under Article 10, Paragraph 1, Letter "d" of Directive
2004/25/EC of the European Parliament and of the Council of 21 April 2004
regarding take-over offers . The holders of any securities with special control
rights and a description of those rights
Monbat AD does not have any shareholders with special control rights.

13
5.3. Information under Article 10, Paragraph 1, Letter "f" of Directive
2004/25/EC of the European Parliament and of the Council of 21 April 2004
regarding take-over offers . Any restrictions on voting rights, such as limitations
of the voting rights of holders of a given percentage or number of votes,
deadlines for exercising voting rights, or systems whereby, with the company’s
cooperation, the financial rights attaching to securities are separated from the
holding of securities
There are no limitations over the voting rights of any shareholder of MONBAT AD.
In order to participate in the General Meeting, shareholders must identify
themselves with the documents attesting their identity and representative authority as
provided by the law, the Articles of Association and the invitation for the General Meeting
and must be registered by the mandate commission on the list of attending shareholders
prior to the beginning of the General Meeting.
5.4. Information under Article 10, Paragraph 1, Letter "h" of Directive
2004/25/EC of the European Parliament and of the Council of 21 April 2004
regarding take-over offers
The rules governing the appointment and replacement of board members and the
amendment of the articles of association
Pursuant to the provisions of the Articles of Association the general assembly
approves the number, elects and releases the Board members and their remunerations as
well.
According to the Company’s Articles of Association, the Board of Directors is elected
for up to five years. The General Meeting of Shareholders may at any time decide to make
changes in the number of the members and the composition of the Board of Directors as
members of the Board may be re-elected without limitations. Member of the Board of
Directors may be a legally capable natural person and legal entity that complies with the
law and have the necessary professional qualifications in relation to the activities of the
company.
5.5. Information under Article 10, Paragraph 1, Letter "i" of Directive
2004/25/EC of the European Parliament and of the Council of 21 April 2004
regarding take-over offers The powers of board members, and in particular, the
power to issue or buy back shares
The Articles of Association of the Company specifies all powers of the Board of
Directors.
Pursuant to the provisions of the Articles of Association of the Company the Board
of Directors does not have the right to decide on a capital increase of the Company. This
is done by a resolution of the General Meeting of Shareholders.
Pursuant to the Articles of Association of the Company the Board of Directors is
authorized to adopt resolutions for buy back procedures of company’s own shares.
6. The composition and functioning of the administrative, managerial and
supervisory bodies and their committees
MONBAT AD has a one-tier management system. The Company is being managed
and represented by a Board of Directors which as of the date of preparing this declaration
includes the following members:

14
Chavdar Danev – Chairman of the Board of Directors
Petar Petrov – Member of the Board of Directors
Evelina Slavcheva – Member of the Board of Directors
Florian Huth – Member of the Board of Directors
Peter Bozadzhiev – Member of the Board of Directors
Kyle Anderson– Member of the Board of Directors
Viktor Spiriev – Executive member of the Board of Directors
The Board of Directors adopts Rules of Procedure and elects a Chairman and Vice
Chairman among its members.
The Board of Directors holds at least one meeting per 3 months in order to discuss
the condition and development of the company. Each board member may request the
Chairman to convene a meeting to discuss specific issues.
The Board of Directors may pass resolutions if at least half the members are
present, whether in person or represented by another member. No present member may
represent more than one absent member.
The Board of Directors may pass resolutions in absence, if all directors have stated
in writing their approval for the resolution.
7. Description of the diversity policy applied as regards the administrative,
managerial and supervisory bodies of the issuer in connection with aspects such
as age, gender or education and professional experience, the objectives of such
diversity policy, its method of application and the results therefrom during the
reporting period; when no such policy is applied, the declaration shall contain an
explanation regarding the reasons for that
The company has developed a number of internal documents that can be classified
as a diversity policy in terms of the Board of Directors in relation to aspects such as age,
gender or education and professional experience.
Such internal documents are: Rules of Procedure of the Board of Directors,
Recruitment Policy, Code of Ethics, Personal Data Processing Rules, Rules on the structure
of the internal organization.
Each of these documents individually and together with the other documents form
the company’s diversity policy in terms of the management and supervisory bodies in
relation to aspects such as age, gender or education and professional experience, the
objectives of this diversity policy.
The internal documents require the company to apply a balanced policy for
nominating members of the corporate board who have education and skills that respond
to the company’s nature of work, its long-term objectives and business plan.
The internal documents of the company encourage establishment of gender
balance at all management levels.
The Company does not discriminate members of the corporate boards based on
the criterion of age.
.................................................
30.03.2023
Petar Petrov
/Procurator/

iii
REPORT
OF THE BOARD OF DIRECTORS
OF MONBAT
REGARDING APPLICATION OF THE
REMUNERATION POLICY FOR THE MEMBERS OF
THE BOARD OF DIRECTORS IN THE COMPANY,
DEVELOPED IN COMPLIANCE WITH THE
REQUIREMENTS OF ORDINANCE NO. 48 OF THE
FINANCIAL SUPERVISION COMMISSION DATED
MARCH 20, 2013 REGARDING REQUIREMENTS TO
REMUNERATION
The Remuneration Policy has been amended and supplemented most recently
with a decision of the General Meeting of the shareholders held on 18.09.2020

1
This report contains an overview of the manner in which the remuneration policy
for the members of the Board of Directors has been applied for the accounting year 2022
and a program for application of the policy in the next financial year. This report reflects
the factual application of objective principles for formation of the remuneration in view of
attracting and retaining qualified and loyal members of the Board of Directors and their
motivation to work in the interest of the company and the shareholders, by avoiding a
potential and a real conflict of interests.
The remunerations of the Board of Directors in MONBAT AD for 2022 have been
formed only by fixed remuneration. No additional bonuses and variable remunerations
have been paid.
No changes to the remuneration policy of the Board of Directors of MONBAT AD are
stipulated in 2023.
Information under article 13 of Ordinance No. 48 of FSC regarding the requirements
to the remunerations:
1. Information regarding the decision-making process in determining the
remuneration policy, including, if applicable, information about the mandate and
the members of the remunerations committee, the names of the external
consultants, the services of which have been used in determining the
remuneration policy
The remuneration policy for the members of the Board of Directors of MONBAT AD,
and each of its amendments and supplements shall be developed by the Board of Directors
of the company and shall be approved by the General Meeting of the shareholders.
The currently effective Policy has been developed by the Board of Directors of the
company based on the decision-making procedure by the corporate governance,
designated in the Statute of the company. In compliance with the regulatory requirements,
the Policy has been adopted by the regular annual meeting of the shareholders, held on
27.06.2016 and has been amended with a decision of the General Meeting of the
shareholders dated 18.09.2020. When developing the remuneration policy for the
members of the Board of Directors of MONBAT AD, all regulatory requirements have been
complied with, as well as the recommendations of the National Corporate Governance
Code.
According to the current remuneration policy for the members of the Board of
Directors of MONBAT AD, the company has not established a remunerations committee.
For determining the Policy, the Board of Directors of MONBAT AD has not used external
consultants.
The remuneration policy for the members of the Board of Directors of MONBAT AD
has the objective of establishing objective criteria in determining the remunerations of
corporate governance of the company, in view of attracting and retaining qualified and
loyal members of the Board and incentivizing them to work in the interest of the company
and the shareholders, by avoiding potential and real conflict of interests.
During the financial year, MONBAT AD applies the remuneration policy for the
members of the Board of Directors in compliance with the regulatory requirements for
public companies, the objectives, the long-term interests and the strategy for future
development of the company, as well as its financial and economic status in the context
of the national and European economic juncture, according to the the recommendations
of the National Corporate Governance Code.

2
2. Information about the relative burden of the variable and fixed remuneration
of the members of the managing and regulatory bodies
According to the effective remuneration policy for the members of the Board of
Directors of MONBAT AD during the reporting financial year, the company has paid to the
members of the Board of Directors fixed remuneration, the amount of which has been
approved by the General Meeting of the shareholders of the Company.
Given the financial and economic condition of the company, as well as given the
commitment of the members of the Board of Directors of Monbat AD, for the financial year
2022, the amount of the monthly remunerations of the members of the Board shall be
determined as follows: net monthly remuneration of the members of the Board of Directors
– equal to 3,000 BGN.
During the reporting year, the members of the Board of Directors of MONBAT AD
have not received variable remuneration.
3. Information regarding the criteria for the results achieved, on the basis of
which options on shares, shares of the company, or another type of variable
remuneration are provided, and an explanation on how the criteria set forth in
article 14, paragraphs 2 and 3 of Ordinance 48 contribute to the long-term
interests of the company
According to the effective remuneration policy, an option for providing shares or
options on shares as a type of additional remuneration of the members of the Board of
Directors has been stipulated.
The provision of article 2.4 of the Policy stipulates the possibility of MONBAT AD to
pay to members of the Board of Directors additional variable annual remuneration in the
form of shares or options over shares, as well as the application and implementation of
this provision shall be postponed until such time that the General Meeting of shareholders
approved a particular scheme for allocation of additional variable remuneration in the form
of shares or options over shares.
4. Explanation of the methods applied for assessment of fulfillment of the criteria
for the achieved results
During the reporting year, the members of the Board of Directors of MONBAT AD
have only received fixed remuneration.
5. Clarification regarding the dependency between the remuneration and the
results achieved
According to the current Remuneration Policy, the Board of Directors shall
determine on an annual basis the values of the performance indicators for each calendar
year at the start of the same year on the basis of an analysis of the approved budget and
strategy for the following three-year period and offers them for approval by the General
Meeting of the shareholders. In 2022 no new performance indicators have been proposed
and approved.
During the expired year, the members of the Board of Directors of MONBAT AD
have not received variable remuneration.
6. The main payments and justification of the annual bonus disbursement and/or
scheme for disbursement of all other non-financial additional remunerations
During the reporting year, the members of the Board of Directors of MONBAT AD
have only received fixed remuneration. The General Meeting of the shareholders of the

3
Company has not adopted a decision for accrual or payment and additional remuneration
of the members of the Board of Directors for 2022.
7. A description of the main characteristics of the scheme for additional voluntary
pension security and information regarding the paid and/or outstanding
payables by the company to the benefit of the director for the respective financial
year, when applicable
As regards to the members of the Board of Directors of MONBAT AD, there is no
commitment by the company for additional voluntary pension insurance by members of
the board and the company does not have obligations for making installments to the
benefit of directors for the reporting financial year.
8. Information about the periods for repayment of variable remunerations
According to the current Remuneration Policy, the payment of the variable
remuneration shall be made by having 60% of the remuneration accrued for the respective
year being paid after a decision by the general meeting of the shareholders, respectively
40% of the remuneration accrued for the respective year, shall be paid in equal
installments for a term of 3 years, starting as of the date of taking the decision by the
general meeting of the shareholders for its provision.
During the reporting year, the members of the Board of Directors of MONBAT AD
have not received variable remuneration.
9. Information about the remuneration policy when terminating the agreements
According to the current remuneration policy for the members of the Board of
Directors of MONBAT AD, the following terms and conditions and compensations have been
stipulated in terminating the agreement only with the company executive director, namely
in case of termination of the agreement with an executive director prior to the expiration
of the term, for which it has been concluded, due to a cause other than the fault of that
member, the Company shall owe liquidated damages according to the stipulations in the
Agreement, but the general amount of the remuneration shall not exceed the paid annual
fixed gross remunerations of the person for the past two years.
10. Information about the period in which the shares may not be transferred and
options over shares may not be exercised in variable remunerations based on
shares
In case the General Meeting of the shareholders has adopted the particular scheme
for allocation of additional variable remuneration in the form of shares or options over
shares, it shall also include rules regarding the period in which the shares may be
transferred and the options over shares may not be exercised. The respective rules shall
be compliant with both the regulations and with the interests of the company.
11. Information about the policy for preservation of a particular number of
shares to the end of the mandate of the members of the managing and regulatory
bodies after expiration of the period set forth in article 10
In case the General Meeting of the shareholders has adopted a particular scheme
for allocation of additional variable remuneration in the form of shares or options over
shares, it shall also include rules regarding the policy for retention of a certain number of
shares until the expiration of the mandate of members of the Board of Directors.

4
12. Information about the agreements of the members of managing and
regulatory bodies, including the term of each agreement, the term of the advance
notice for termination and details regarding compensations and/or other
outstanding payments in case of advance termination
The mandate of the members of the Board of Directors is 5 years and it starts from
the time of registering those in the Commercial Register. At the time of drafting this
document no mandates that have been expired. All remunerations of the members of the
Board of Directors have been designated in compliance with the remuneration policy for
the members of the Board of Directors and the decision of the General Meeting.
The liquidated damages payable for the pro-term termination of agreements by
members of the Board of Directors shall be completed in accordance with the remuneration
policy for the members of the Board of Directors.
13. The complete amount of the remuneration and of the other tangible
incentives of the members of the Board of Directors for the respective financial
year
For 2022, the members of the Board of Directors of the Company, the following
remunerations have been paid:
Full name Position Gross
amount/BGN
Net
amount/BGN
1 Evelina Slavcheva Member of the Board of Directors 40 000 36 000
2 Chavdar Danev Member of the Board of Directors 40 000 36 000
3 Viktor Spiriev Member of the Board of Directors 40 000 36 000
4 Peter Bozadzhiev Member of the Board of Directors 40 000 36 000
5 Petar Petrov Member of the Board of Directors 40 000 36 000
6 Kyle Anderson Member of the Board of Directors 40 000 36 000
7 Viktor Spiriev Executive member of the Board of
Directors 734 166 655 803
8 Peter Bozadzhiev Group Operations Director 564 642 503 231
9 Petar Petrov Director of the Battery division 307 453 271 762
10 Chavdar Danev Financial Director for Liaison with
Financial Institutions 93 811 84 430
For 2022, the members of the Board of Directors of the Company have not received
other material incentives.
14. Information for the remuneration of each person, who has been a member of
the managing or regulatory body in a public company for a particular period of
time during the respective financial year:
a) the complete amount of the paid remuneration for the entity for the respective
financial year
The complete amount of the paid remunerations to the members of the Board of
Directors has been indicated in article 13 of this report. No material incentives have been
paid. No other types of remuneration have been calculated, other than the fixed
remuneration.

5
b) the remuneration and other tangible and intangible incentives received by the
person by companies from the same group
In 2022, the members of the Board of Directors of MONBAT AD received remuneration as
management personnel from subsidiaries of MONBAT AD as follows:
Name Position Gross BGN Net BGN
1 PETER BOZADZHIEV Monbat Holding GmbH 215 000 215 000
2 PETAR PETROV START AD 76 000 68 400
3 FLORIAN HUTH Monbat Holding GmbH 198 000 198 000
c) remuneration received by the person in the form of profit allocation and/or
bonuses and grounds for allocating them
In 2022, none of the members of the Board of Directors of MONBAT AD has received
remuneration by the company in the form of allocation of profit and/or other bonuses.
d) all additional payments for services provided by the person outside of its
regular functions, when such payments are permitted according to the contract
concluded with that person
Petar Hristov Petrov – member of the Board of Directors of MONBAT AD has received
in 2022 remuneration for employment with MONBAT AD as a Division Director Batteries to
the amount of BGN 271 762.
Petar Bozadzhiev – member of the Board of Directors of MONBAT AD has received
in 2022 net remuneration for employment with MONBAT AD as a Group Operational
Director to the amount of BGN 503 231.
Chavdar Danev - member of the Board of Directors of MONBAT AD received in 2022
a net remuneration for employment with MONBAT AD as Financial Director for relations
with financial institutions to the amount of BGN 84 430.
e) the paid and/or accrued compensation as regards to suspension of his
functions during the last financial year
In 2022 no remuneration has been paid as regards to suspension of functions by a
member of the Board of Directors.
f) total assessment of all non-financial benefits, equal to remunerations outside
of the ones indicated in letters a through e
In 2022 no member among the members of the Board of Directors of MONBAT AD
has received non-financial benefits, equal to remunerations, outside of the ones indicated
in letters “ a ” through “ d ” .
g) information regarding all loans provided, payments to social and living costs
and guarantees by the company, or by its affiliates, or other companies, which
are the subject of consolidation in its annual financial statement, including data
regarding the outstanding unpaid portion and interests
In 2022, there have been no payments to social and living costs and guarantees to
members of the Board of Directors by the company, or its affiliates, or other entities, which
are the subject of consolidation in its annual financial statement.

6
15. Information regarding the shares and/or the options over shares and/or
other incentive schemes based on shares:
a) number of the offered options on shares, or shares provided by the
company during the respective financial year and the conditions under which
they have been offered and provided, respectively;
b) number of options exercised over shares during the respective financial
year and for each of them, the number of shares and the price of exercising the
option, or the value of the interest rate under the scheme for incentivizing based
on shares as at the end of the financial year;
c) number of non-exercised options over shares as at the end of the financial
year, including data regarding their price and date of exercising, and material
terms and conditions for exercising rights;
d) all changes in terms and conditions on existing options over shares,
adopted during the financial year;
Both in 2022 and in previous reports, additional variable annual remuneration has
been paid in the form of shares or options on shares. Respectively, the General Meeting
of the shareholders has not approved a particular scheme for allocation of additional
variable remuneration in the form of shares or options over shares.
16. Annual change in the remuneration, the results of the company and the
average amount of the remunerations based on full-time employment of other
company employees, who are not directors, as a minimum during the past five
financial years, presented jointly in a manner that allows comparison.
Year
1.Gross
remuneration
of all
members of
the BoD for
the year in
BGN
2.Average
monthly
remuneration
for a member
of the BoD
for the year
in BGN
3.Financial
result of
Monbat AD –
net profit in
BGN
4. Gross
remuneration
based on full
–time
employment
of company
employees –
not directors
for the year
in BGN
5.Average
monthly
remuneration
based on
full-time
employment
of company
employees –
not directors
for the year
in BGN
2018 1 353 706 14 101 9 732 000 10 118 388 2 092
2019 1 243 537 12 953 6 981 000 11 900 565 2 163
Change 2019 to 2018 (%) -8,14% -8,14% -28,27% 17,61% 3,39%
2020 1 096 333 15 226 5 356 000 13 144 654 2 321
Change 2020 to 2019 (%) -11,84% 17,55% -23,28% 10,45% 7,28%
2021 1 198 192 17 620 1 196 000 13 806 767 2 342
Change 2021 to 2020 (%0,00%) 9,29% 15,72% -77,67% 5,04% 0,92%
2022 974 166 11 597 1 219 000 13 178 654 2 334
Change 2022 to 2021 (%) -18,70% -34,18% 1,92% -4,55% -0,33%
17. Information regarding exercising the option to request refund of variable
remuneration.
During the past year, the option of requesting refund of variable remuneration
has not been exercised.

7
18. Information about all deviations from the procedure for application of the
remuneration policy in conjunction with extraordinary circumstances set forth in
article 11, paragraph 13, including for clarification of the nature of the
extraordinary circumstances and indication of the particular components, which
are not applied.
In 2022 no extraordinary circumstances have occurred, in conjunction with which
the company has deviated from the procedure of applying the Remuneration Policy.
19. Program for application of the Remuneration Policy for the next financial
year.
The Company shall agree to follow the underlying rules in the remuneration policy
for the members of the Board of Directors of MONBAT AD regarding disbursement of
remunerations for the following financial year. The management is of the opinion that the
current principles underlying in the policy for determining the remunerations are effective.
The members of the Board of Directors accept that in case of significant change in the
business environment, the financial indicators and risks, and in relation to the
requirements set forth in article 11, paragraph 4 of Ordinance No. 48, dated March 20,
2013, the Remuneration Policy shall be reviewed and the changes stipulated shall be
proposed for voting by the general meeting of the shareholders, of which the public shall
be informed in compliance with the provisions of the Law on Public Offering of Securities.
Taking into consideration the prevailing economic situation in which the company shall
exercise its activity in 2022, the Board of Directors does not consider it expedient to
determine the values per performance indicators in 2022, in view of receiving additional
variable remuneration.
.................................................
30.03.2023
Petar Petrov
/Procurator/

iv
DECLARATION
under Art. 100n, para. 4, item 4 of the
LAW ON PUBLIC OFFERING OF SECURITIES
The undersigned,
1. Petar Petrov – Procurator of MONBAT AD
2. Petya Belnikolova – Chief accountant of MONBAT AD
DECLARE
that, to the best of our knowledge:
1. The 2022 annual financial statement prepared in accordance with the applicable set of
accounting standards gives a true and fair view of the assets, liabilities, financial position
and profit of MONBAT AD.
2. The 2022 activity report includes a fair review of the development and the performance
of the business and the position of MONBAT AD together with a description of the principal
risks and uncertainties that the company faces.
30.03.2023
Declarers:
1. Petar Petrov
2. Petya Belnikolova

1
Grant Thornton OOD
A 26, Cherni Vrah Blvd, 1421 Sofia
A 4, Paraskeva Nikolau Str., 9000 Varna
T (+3592) 987 28 79, (+35952) 69 55 44
F (+3592) 980 48 24, (+35952) 69 55 33
E office@bg.gt.com
W www.grantthornton.bg
INDEPENDENT AUDITOR’S REPORT
To the shareholders of
MONBAT AD
32А, Cherni Vrah Blvd., Sofia
Report on the Audit of the Separate financial statements
Qualified Opinion
We have audited the separate financial statements of „Monbat“ AD („the Company“), which comprise the
separate statement of financial position as of 31 December 2022 and the separate statement of profit or loss
and separate statement of comprehensive income, separate statement of changes in equity and separate
statement of cash flows for the year ended and notes to the separate financial statements, including a
summary of significant accounting policies.
In our opinion, except for the possible effects of the matters described in the “Basis for Qualified Opinion”
section of our report, the accompanying financial statements give a true and fair view of the financial position of
the Company as of 31 December 2022, its financial performance and cash flows for the year then ended, in
accordance with International Financial Reporting Standards (IFRS), as adopted from the EU and the
Bulgarian legislation.
Basis for Qualified Opinion
As disclosed in note 40.2 "Credit risk" to the separate financial statements, the Company has overdue trade
receivables from Ukrainian counterparties with carrying value of BGN 7,992 thousand as of 31 December
2022, of which BGN 5,030 thousand are overdue more than two years and BGN 2,962 thousand are overdue
more than one year. No collateral or insurance has been provided for these receivables. No payments have
been received as of the date of this report. We have not been able to obtain sufficient appropriate audit
evidence regarding the recoverability of these trade receivables.
As disclosed in note 7 "Non-current assets held for sale" to the separate financial statements, Monbat AD has
reclassified its investment in the subsidiary Monbat Immobilien GmbH with carrying value of BGN 11,602
thousand as of 31 December 2022, as a non-current asset held for sale. The Company determined that the
asset's book value exceeds its fair value, less the costs of sale, as negotiated in the terms of a signed sale
agreement with non-related party, and recognised impairment expenses of BGN 3,106 thousand in 2022,
respectively BGN 19,484 thousand in 2021. The management believes that this investment is fully recoverable
through the fair value of the main asset, an investment property in Austria. Given the uniqueness of this
property, the lack of fully comparable market analogues and fair value report by external valuation specialist in
accordance with the requirements of IFRS at the reporting date, we have not been able to obtain reasonable
assurance as to the amount of the impairment adjustment required regarding the subsidiary Monbat
Immobilien GmbH in accordance with IFRS 5 "Non-current assets held for sale and discontinued operations"
as of 31 December 2022.
We conducted our audit in accordance with International Standards on Auditing (ISA). Our responsibilities
under these standards are further described in the “Auditor’s Responsibilities for the Audit of the Separate
Financial Statements” section of our report. We are independent of the Company in accordance with the
International Code of Ethics for Professional Accountants (including International Independent Standards)
issued by the International Ethics Standards Board for Accountants (IESBA Code), together with the ethical
requirements of Bulgarian Independent Financial Audit Act, and we have fulfilled our other ethical
responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our qualified opinion.

2
Key Audit Matters
Key audit issues are those issues that, in our professional judgment, were of the greatest importance in the audit of
the separate financial statements for the current period. These matters are considered as part of our audit of the
separate financial statements as a whole and the formation of our opinion on it, and we do not provide a separate
opinion on these issues. In addition to the matters described in the "Qualified Opinion Basis" section, we have
determined the matters described below to be the key audit matters to be communicated in our report.
Related parties of Monbat AD: disclosure and assessment of the recoverability of receivables from
related parties
The disclosures of the Company regarding the related parties, as well as the assessment of the recoverability
of receivables from them are presented in notes 36 and 37.1 to the separate financial statements.
Key audit matter How this matter was addressed during the audit
The Company's operations include significant
transactions and balances with related parties, as
presented in notes 36 and 37 to the separate
financial statements.
The identification of the relationships and the nature
of the transactions are essential for the completeness
and appropriateness of the presentation and
disclosure of related parties. This process requires
management to analyse the contractual
arrangements, as well as specific facts and
circumstances, on the basis of which to assess the
financial impact of the transactions, balances and
necessary disclosures.
As of 31 December 2022, the carrying amount of the
receivables from related parties is BGN 93 384
thousand, which is 25% of the total assets of the
Company. Of these, BGN 29 037 thousand are loans
and receivables from the group of the ultimate parent
company Prista Oil Holding AD, which is outside the
group of Monbat AD.
IFRS 9 requires the Company to determine at each
reporting date the impairment loss of its financial
assets, based on a change, if any, in the credit risk of
the financial instrument. As disclosed in note 37.1
“Related party receivables” to the separate financial
statements, the Company has determined that no
impairment loss on loans and trade receivables from
related parties outside the Group of "Monbat" AD is
required, based on the assessment of the
recoverability as of 31 December 2022. This
assessment is related to a complex analysis and
various judgements made by Company's
management regarding the expected time and
amount of repayments by related parties, based on
different scenarios, as well as considerations for the
existence of additional non-operational sources of
repayment (e.g. possible sales of businesses or
assets other than the main activity). Management's
analysis and judgements focus on the recoverability
assessment scenario that includes repayment over a
period of time and is based on the projected cash
flows of Prista Oil Group's lubricants business for the
period 2023-2027, as well as assessment of the
dividend distribution capacity of Monbat Group,
based on its projected cash flows for the same five-
year period.
In this area, our audit procedures included, among
others:
 analysis of the Company's contractual
agreements with related parties, as well as specific
facts and circumstances, in order to identify the
nature of the transactions and their effect on the
financial condition and results of operations of the
Company;
 receipt of confirmation letters on related
party transactions and balances, as well as
management’s statements, which we analysed in the
context of the available documentation for these
transactions;
 analysis of certain documents and registers
selected by us in order to identify relationships and
transactions with related parties that have not been
previously identified or disclosed by management;
 we focused on the assessment of the
presentation and disclosure of transactions and
balances with related parties in view of their
consistency with our understanding of the business
model of the Company, as well as the results of our
audit procedures in other relevant areas;
 regarding management's assessment of the
recoverability of loans and receivables from related
parties outside Monbat Group, we included our
internal valuation specialists in the audit procedures,
and focused in particular on:
- gaining an understanding of the different
scenarios considered by management in their
analysis of recoverability and assessing the
applicability of the methods used, in particular,
discounted cash flows in the scenario that includes
repayment over a period of time;
- analysis of the projected cash flows for the
period 2023 - 2027 of the lubricants business of
Prista Oil Group by reviewing the reasonableness of
the key assumptions used such as revenue,
expenses, profitability before interest, taxes and
depreciation against historical data and industry data.
We also performed a test for the relevance of the
recoverability of Prista Oil loans and receivables,
using an estimate of the value of Prista Oil Group's

3
Due to the significance of the disclosures and
balances of loans and trade receivables from related
parties, as well as the annual assessment of their
recoverability, including complex analysis and
multiple assumptions by Company's management,
we have identified this area as a key audit matter.
equity using market analogues and net assets
methods, as well as an analysis of the sensitivity of
Prista Oil's ability to repay amounts due to
assumptions about adverse effects on its operating
activities. We also considered the availability of
additional non-operational sources of repayment
(e.g. possible sales of businesses or assets outside
the main business), which are included as other
considerations in the analysis of recoverability by
management.
- assessment of the dividend capacity of the Monbat
Group, based on projected cash flows for the period
2023-2027, by analysing the reasonableness of key
assumptions such as income, expenses, earnings
before interest, taxes and depreciation against
historical data and data from the industry. We also
took into account the history of distributed dividends
and the dividend distribution policy of Monbat Group.
 procedures for assessment of the adequacy
of Company’s disclosures in the attached separate
financial statements regarding related parties,
including the assessment of the recoverability of
loans and receivables from them.
Information Other than the Separate Financial Statements and Auditor’s Report Thereon
Management is responsible for the other information. The other information consists of the annual individual
activity report, incl. the corporate governance statement and the report on compliance with the remuneration
policy prepared by management in accordance with the Accounting Act, but does not include the separate
financial statements and our audit report thereon.
Our opinion on the separate financial statements does not cover other information and we do not express any
form of assurance about it unless expressly stated in our report and to the extent that it is stated. In connection
with our audit of the separate financial statements, our responsibility is to read the other information and
thereby determine whether that other information is materially inconsistent with the separate financial
statements or our knowledge of the audit, or otherwise it appears to contain material misstatement. In the
event that, based on the work we have done, we conclude that there is a material misstatement in this other
information, we are required to report this fact.
As described in the "Basis for Qualified Opinion" section of this report, we have not been able to obtain
sufficient appropriate audit evidence on the issues identified in this section. Accordingly, we are unable to
determine whether the other information does not contain material misstatement in this regard.
Responsibilities of Management and Those Charged with Governance for the Separate Financial
Statements
Management is responsible for the preparation and fair presentation of these separate financial statements in
accordance with International Financial Reporting Standards (IFRS), as adopted by the EU and Bulgarian law,
and for such internal control system as management deems necessary to enable the preparation of the
separate financial statements that are free from material misstatements, whether due to fraud or error.
In preparing the separate financial statements, management is responsible for assessing the Company’s ability
to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless management either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting process of
the Company.

4
Auditor’s Responsibilities for the Audit of the Separate Financial Statements
Our objectives are to obtain a reasonable degree of assurance as to whether the separate financial statements
as a whole do not contain material misstatements, whether due to fraud or error, and to issue an audit report
that includes our audit opinion. A reasonable level of assurance is a high level of assurance, but there is no
guarantee that an audit performed in accordance with ISA and the Independent Financial Audit Act will always
reveal material misstatement, where such exists. Incorrect readings may arise as a result of fraud or error and
are considered material if it could reasonably be expected that they, alone or as a whole, could influence the
economic decisions of consumers made on the basis of this financial statement. report.
As part of our audit in accordance with ISAs, we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
 identify and assess the risks of material misstatement in the separate financial statements, whether due
to fraud or error, develop and perform audit procedures in response to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our audit opinion. The risk of not
disclosing material misstatement resulting from fraud is higher than the risk of material misstatement
resulting from error, as fraud may include collusion, falsification, intentional omissions, introductory
statements the auditor's misrepresentation, as well as neglect or circumvention of internal control;
 obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company’s internal control;
 evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management;
 conclude on the appropriateness of management's use of the accounting base based on the going
concern assumption and, based on the audit evidence obtained, whether there is material uncertainty
about events or conditions that could give rise to significant doubts about the Company's ability to
continue to operate as a going concern. If we conclude that there is material uncertainty, we are required
to draw attention in our audit report to the disclosures related to this uncertainty in the separate financial
statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on
the audit evidence obtained up to the date of our audit report. However, future events or conditions may
cause the Company to cease to operate as a going concern;
 evaluate the overall presentation, structure and content of the separate financial statements, including the
disclosures, and whether the separate financial statements represent the underlying transactions and
events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that
may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of
most significance in the audit of the separate financial statements of the current period and are therefore the
key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not
be communicated in our report because the adverse consequences of doing so would reasonably be expected
to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
In addition to our responsibilities for reporting under ISAs, described above in section “Information Other than
the Separate Financial Statements and Auditor’s Report Thereon”, regarding annual management report, we
have performed the additional procedures contained in the Guidelines of the professional organisation of
certified public accountants and registered auditors in Bulgaria - Institute of Certified Public Accountants
(ICPA). The procedures on the existence, form and contents of the other information have been carried out in
order to state whether the other information includes the elements and disclosures in accordance with Chapter
Seven of Bulgarian Accountancy Act and Article 100m, paragraph (10) in relation to Article 100m, paragraph
(8), subparagraphs (3) and (4) of Bulgarian Public Offering of Securities Act, as well as Article 100m,
paragraph 14 in relation to Article 116c, paragraph (1) of Bulgarian Public Offering of Securities Act.

5
Statement Pursuant to Article 37, Paragraph (6) of Bulgarian Accountancy Act
Based on the procedures performed, we describe the outcome of our work:
(a) the information in the management report is consistent with the separate financial statements for the
same reporting period, on which we have issued qualified opinion in the section “Report on the Audit
of the Separate Financial Statements” above;
(b) the management report is prepared in accordance with the applicable legal requirements;
(c) as a result of the acquired knowledge and understanding of the Company's activities and the
environment in which it operates, we have not identified cases of material misstatement in the
individual activity report, except for the possible effect described in "Information Other than the
Separate Financial Statements and Auditor’s Report Thereon" in "Report on the Audit of the Separate
Financial Statements";
(d) the corporate governance statement for the financial year contains the required information in
accordance with the applicable legal requirements, including Article 100m, paragraph (8) of Bulgarian
Public Offering of Securities Act;
(e) the report on compliance with the remuneration policy has been prepared in accordance with the
requirements of the ordinance pursuant to Article 116c, paragraph 1 of Bulgarian Public Offering of
Securities Act and the information in it is consistent with the separate financial statements for the
same reporting period.
Statement Pursuant to Article 100m, Paragraph (10) of Bulgarian Public Offering of Securities Act
Based on the procedures performed and our knowledge of the Company and the environment in which it
operates, in our opinion, there is no material misstatement in the description of the main characteristics of the
internal control system and of the risk management system of the Company in connection with the financial
reporting process and also in the information pursuant to Article 10, paragraph 1, items “c”, “d”, “f”, “h” and “i” of
Directive 2004/25/EC of the European Parliament and of the Council of 21 April 2004 on takeover bids, which
are included in the corporate governance statement, being a component of the annual management report.
Additional reporting concerning the audit of financial statements in connection with Article 100m,
paragraph (4), subparagraph (3) of Bulgarian Public Offering of Securities Act
 Statement on Article 100m, paragraph 4, subparagraph (3), item "b" of Public Offering of Securities Act
Related party transactions are disclosed in note 36 to the separate financial statements. Based on the
performed audit procedures on related party transactions as part of our audit of separate financial statements
as a whole, no facts, circumstances or other information have come to our attention that caused us to conclude
that the related party transactions are not disclosed in the accompanying separate financial statements for the
year ended on 31 December 2022, in all material respects, in accordance with the requirements of IAS 24
„Related Party Disclosures “. The results of our audit procedures on related party transactions were taken into
consideration for the purposes of issuing an auditor’s opinion on the separate financial statements as a whole,
not for issuing a separate opinion only on related party transactions.
 Statement on Article 100m, paragraph (4), subparagraph 3, item "c" of Public Offering of Securities Act
Our responsibilities for audit of the separate financial statements as a whole, described in our report in section
„Responsibilities of the Auditor for the Audit of Separate Financial Statements“, include assessment whether
the financial statements present fairly the significant transactions and events. Based on the performed audit
procedures on the significant transactions, which are fundamental to the separate financial statements for the
year ended on 31 December 2022, no facts, circumstances or other information have come to our attention
that caused us to conclude that there are instances of unfair presentation and disclosure in accordance with
the requirements of IFRS, as adopted by the European Union. The results of our audit procedures on the
significant transactions and events of the Company, which are material to the separate financial statements,
were taken into consideration for the purposes of issuing an auditor’s opinion on the separate financial
statements as a whole, not for issuing a separate opinion only on the significant transactions.
Reporting on compliance of the electronic format of the separate financial statements included in the
annual separate financial report on the activity under Art. 100n, para 4 of Bulgarian Public Offering of
Securities Act with the requirements of ESEF Regulation
In addition to our responsibilities and reporting under ISA, described above in the section "Auditor's
Responsibilities for the Audit of the Separate Financial Statements", we have followed the procedures in
accordance with the Guidelines on Issuing of Audit Opinion regarding the Implementation of the European
Single Electronic Format ( ESEF) for the financial statements of companies whose securities are admitted to

6
trading on a regulated market in the European Union (EU)" of Bulgarian Institute of Chartered Accountants
(ICPA) in Bulgaria". These procedures include verifying the electronic file format and whether the human
readable part of it corresponds to the audited separate financial statements and expressing an opinion
regarding the compliance of the electronic format of the separate financial statements of Monbat AD for the
year ending 31 December 2022, contained in the electronic file “213800ZH4VUOQOUVYX93-20221231-BG-
SEP.xhtml“, with the requirements of Commission Delegated Regulation (EU) 2019/815 of 17 December 2018
supplementing Directive 2004/109/EC of the European Parliament and of the Council with regard to regulatory
technical standards on the specification of a single electronic reporting format (“ESEF Regulation”). Based on
these requirements, the electronic format of the separate financial statements included in the annual separate
financial report on the activity under Art. 100n, para. 4 of Bulgarian Public Offering of Securities Act, must be
submitted in XHTML format.
The management of the Company is responsible for the application of the requirements of ESEF Regulation
when preparing the electronic format of the separate financial statements in XHTML.
Our opinion is only regarding the electronic format of the separate financial statements included in the
electronic file “213800ZH4VUOQOUVYX93-20221231-BG-SEP.xhtml“ and does not include the other
information contained in the annual separate financial report on the activity under art. 100n, para. 4 of
Bulgarian Public Offering of Securities Act.
Based on the performed procedures, our opinion is that the electronic format of the separate financial
statements of the Company for the year ended 31 December 2022, contained in the attached electronic file
“213800ZH4VUOQOUVYX93-20221231-BG-SEP.xhtml“, on which we are issuing a qualified audit opinion,
has been prepared in all material respects in accordance with the requirements of the ESEF Regulation.
Reporting Pursuant to Article 59 of Bulgarian Independent Financial Audit Act in relation to Article 10
of Regulation (ЕС) No 537/2014
In accordance with the requirements of Bulgarian Independent Financial Audit Act and in relation with Article
10 of Regulation (ЕС) No 537/2014, we report additionally the information as follows:
 Grant Thornton OOD was appointed as statutory auditor of the separate financial statements of "Monbat"
AD for the year ended on 31 December 2022 by the general meeting of shareholders, held on 14 June
2022, for a period of one year.
 The audit of the separate financial statements of the Company for the year ended on 31 December 2022
of the Company represents third, consecutive year of continuous commitment for mandatory audit of this
company, performed by us.
 In support of the audit opinion, we have provided in the "Key Audit Matter" section a description of the
most important assessed risks, a summary of the auditor's response and important observations
regarding those risks, where appropriate.
 We confirm that our audit opinion is consistent with the additional report to the audit committee of the
Company, which was provided in accordance with Article 60 of Bulgarian Independent Financial Audit
Act.
 We declare that prohibited non-audit services referred to in Article 64 of Bulgarian Independent Financial
Audit Act were not provided.
 We confirm that we remained independent of the Company in conducting the audit.
 For the period covered by our statutory audit, in addition to the audit, we have not provided other services
to the Company and its controlled undertakings.
Mariy Apostolov Silvia Dinova
Managing partner Registered auditor responsible for the audit
Grant Thornton Ltd., registered No 032
Audit firm
30 March 2023
Bulgaria, Sofia, 26, Cherni Vrah Blvd.

1
Grant Thornton OOD
A 26, Cherni Vrah Blvd, 1421 Sofia
A 4, Paraskeva Nikolau Str., 9000 Varna
T (+3592) 987 28 79, (+35952) 69 55 44
F (+3592) 980 48 24, (+35952) 69 55 33
E office@bg.gt.com
W www.grantthornton.bg
DECLARATION under Art. 100n, para. 4, item 3 of the Public Offering of Securities Act
To the shareholders of
Monbat AD
A 32, Cherni Vrah Blvd. 1421 Sofia
Undersigned:
1. Mariy Georgiev Apostolov, in my capacity as Manager of an audit firm Grant Thornton OOD, registered
with UIC 831716285, with registered office, address of management and address for correspondence: A 26,
Cherni Vrah Blvd, 1421 Sofia and
2. Silvia Borislavova Dinova , in my capacity as a registered auditor (with reg. No 850 from the register under
Art. 20 of the Independent Financial Audit Act), responsible for the audit engagement on behalf of an audit
firm Grant Thornton (with reg. No 032 from the register under Art. 20 of the Independent Financial Audit Act),
we declare that
Audit firm Grant Thornton OOD was engaged to perform a statutory financial audit of the separate financial
statements of Monbat AD for 2022, prepared in accordance with International Financial Reporting Standards,
adopted by the EU, the common name of the accounting base, defined in item 8 of the Additional Provisions of
the Accounting Act under the name „International Accounting Standards”. As a result of our audit, we issued an
audit report from 30 March 2023.
We hereby VERIFY THAT, as reported in our audit report on the annual separate financial
statements of Monbat AD for 2022, issued on 30 March 2023:
1. Statement of Article 100n, paragraph. 4, subparagraph. 3, item „a” Qualified Audit opinion: In our
opinion, except for the possible effects of the matter described in the “Basis for Qualified Opinion” section
of our report, the accompanying financial statements give a true and fair view of the financial position of
the Company as of December 31, 2022, its financial performance and cash flows for the year then ended,
in accordance with International Financial Reporting Standards (IFRS) as adopted from the EU and the
Bulgarian legislation (page 1 of audit report );
2. Statement on Article 100n, paragraph 4, subparagraph (3), item "b” Information, relating to
transactions of the Monbat AD with related parties. Related party transactions are disclosed in note
35 to the separate financial statements. Based on the performed audit procedures on related party
transactions as part of our audit of financial statements as a whole, no facts, circumstances or other
information have come to our attention that caused us to conclude that the related party transactions are
not disclosed in the accompanying financial statements for the year ended on 31 December 2022, in all
material respects, in accordance with the requirements of IAS 24 „Related Party Disclosures“. The
results of our audit procedures on related party transactions were taken into consideration for the
purposes of issuing an auditor’s opinion on the financial statements as a whole, not for issuing a separate
opinion only on related party transactions. (page 5 of audit report ).
3. Statement on Article 100n, paragraph (4), subparagraph 3, item "c" of Public Offering of
Securities Act
Our responsibilities for audit of the financial statements as a whole, described in our report in section
„Responsibilities of the Auditor for the Audit of Financial Statements“, include assessment whether the
financial statements present fairly the significant transactions and events. Based on the performed audit
procedures on the significant transactions, which are fundamental to the financial statements for the year
ended on 31 December 2022, no facts, circumstances, or other information have come to our attention that
caused us to conclude that there are instances of unfair presentation and disclosure in accordance with the
requirements of IFRS, as adopted by the European Union. The results of our audit procedures on the

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significant transactions and events of the Company, which are material to the financial statements, were taken
into consideration for the purposes of issuing an auditor’s opinion on the financial statements as a whole, not
for issuing a separate opinion only on the significant transactions. (page 5 of audit report ).
The certifications made with this statement should be considered only in the context of the
audit report issued by us as a result of the independent financial audit of the annual financial
statements of Monbat AD for the reporting period ending 31 December 2022, with date of audit report
30 March 2023. This declaration is intended only for the above-mentioned addressee and has been
prepared solely in compliance with the requirements set out in Art. 100n, para. 4, item 3 of the Public
Offering of Securities Act (POSA) and should not be taken as a substitute for our conclusions
contained in the audit report issued by us on 30 March 2023 with regard to the issues covered by Art.
100n, item 3 of the POSA.
Mariy Apostolov Silvia Dinova
Managing partner Registered auditor responsible for the audit
Grant Thornton Ltd.
Audit firm
30 March 2023
Sofia, Bulgaria