MONBAT AD
Separate Financial Statements
Annual Separate Activity Report
Independent Auditor’s Report
31 December 2023

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 7-91
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 2023
The notes on pages 7 to 91 are an integral part of these financial statements.
Separate Statement of profit or loss
Note 2023 2022
BGN ‘000 BGN ‘000
Revenue from contracts with customers 25 317 137 327 007
Other operating income 26 906 8 094
Gain on the sale of non-current assets 30 3 9
Expenses for materials 27 (196 586) (204 965)
Hired services expenses 29 (22 161) (22 840)
Payroll expenses 18.1 (18 668) (17 231)
Depreciation and amortization expenses 4, 5, 8 (6 987) (6 681)
Changes in the balance of finished goods and work in
progress 585 5 487
Costs of goods sold and other current assets 28 (64 642) (77 870)
Impairment of financial assets 12, 31, 37 (50) (412)
Other expenses 31 (2 297) (1 997)
Operating profit 7 240 8 601
Finance costs 32 (9 407) (6 604)
Finance income 32 4 174 2 088
Income from the sale of investments - 485
Financial instruments income 34 2 640 589
Other financial items 33 (221) 647
Profit before tax 4 426 5 806
Income tax expense 9 (452) (606)
Profit for the year 3 974 5 200
Loss from discontinued operations 7 (1 066) (3 981)
Total comprehensive income for the year 2 908 1 219
BGN BGN
Earnings per share from continuing operations 35.1 0.10 0.13
Loss per share from discontinued operations 35.1 (0.03) (0.10)
Earnings per share 35.1 0.07 0.03
Prepared on 29 March 2024 by:
Belnikolov and partners OOD -
Petya Belnikolova
Executive Member of the
Board of Directors:
Viktor Spiriev
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 2023
The notes on pages 7 to 91 are an integral part of these financial statements.
Separate statement of comprehensive income
Note 2023 2022
BGN ‘000 BGN ‘000
Profit for the year 2 908 1 219
Other comprehensive income - -
Total comprehensive income for the year 2 908 1 219
Prepared on 29 March 2024 by:
Belnikolov and partners OOD -
Petya Belnikolova
Executive Member of the
Board of Directors:
Viktor Spiriev
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 2023
The notes on pages 7 to 91 are an integral part of these financial statements.
Separate statement of financial position
Assets Notes 31 December 31 December
2023 2022
BGN ‘000 BGN ‘000
Non-current assets
Intangible assets 4 10 378 7 799
Property, plant and equipment 5 46 964 48 619
Investments in subsidiaries and associates 6 83 185 83 051
Right-of-use assets 8 2 747 2 358
Deferred tax assets 9 - 1 914
Non-current assets 143 274 143 741
Current assets
Short-term related party receivables 37.1 87 342 93 384
Trade receivables 12 44 893 44 725
Inventories 10 34 057 36 043
Tax receivables 13 2 621 4 472
Prepayments 1 053 1 843
Short-term financial assets 11 142 149
Income tax receivables 426 230
Other receivables 14 1 596 2 211
Cash and cash equivalents 15 7 060 2 527
Current assets 179 190 185 584
Non-current assets, included in disposal groups,
held for sale 7 40 066 38 867
Total assets 362 530 368 192
Prepared on 29 March 2024 by:
Belnikolov and partners OOD -
Petya Belnikolova
Executive Member of
the Board of Directors:
Viktor Spiriev
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 2023
The notes on pages 7 to 91 are an integral part of these financial statements.
Separate statement of financial position (continued)
Equity and liabilities Notes 31 December 31 December
2023 2022
BGN ‘000 BGN ‘000
Equity
Share capital 16.1 38 966 38 973
Share premium 16.2 28 476 28 498
General reserves 16.3 63 866 63 866
Retained earnings 26 143 27 235
Total equity 157 451 158 572
Liabilities
Non-current liabilities
Convertible bond 21 26 872 42 265
Borrowings 19 5 371 12 614
Fair value of conversion option 21 - 5 280
Lease liabilities 8 1 960 1 524
Government grants 20 90 295
Warranty provisions 17 147 185
Deferred tax liabilities 9 948 -
Non-current liabilities 35 388 62 163
Current liabilities
Borrowings 19 90 977 71 136
Fair value of conversion option 21 2 640 -
Related party payables 37.2 36 784 39 750
Trade payables 22 13 151 11 282
Convertible Bond 21 17 815 11 818
Contract liabilities 24.1 3 850 3 729
Personnel payables 18.2 2 053 1 781
Warranty provisions 17 106 301
Lease liabilities 8 825 854
Deferred revenue 305 248
Tax liabilities 23 73 73
Government grants 20 204 204
Derivatives 24.3 - 364
Other liabilities 24.2 202 5 917
Current liabilities 168 985 147 457
Liabilities, included in disposal groups, held for sale 7 706 -
Total liabilities 205 079 209 620
Total equity and liabilities 362 530 368 192
Prepared on 29 March 2024 by:
Belnikolov and partners OOD -
Petya Belnikolova
Executive Member of the
Board of Directors:
Viktor Spiriev
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 2023
The notes on pages 7 to 91 are an integral part of these financial statements.
Separate statement of changes in equity
All amounts are presented in BGN ‘000
Balance on 1 January 2023
Share
capital
Share
premium
General
reserves
Retained
earnings
Total equity
38 973 28 498 63 866 27 235 158 572
Dividends - - - (4 000) (4 000)
Repurchased own shares (7) (22) - - (29)
Transactions with owners (7) (22) - (4 000) (4 029)
Profit for the year - - - 2 908 2 908
Total comprehensive income for the year - - - 2 908 2 908
Balance on 31 December 2023 38 966 28 476 63 866 26 143 157 451
All amounts are presented in BGN ‘000 Share
capital
Share
premium
General
reserves
Retained
earnings
Total equity
Balance on 1 January 2022 39 000 28 611 63 866 31 516 162 993
Dividends - - - (5 500) (5 500)
Purchased 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 December 2022 38 973 28 498 63 866 27 235 158 572
Prepared on 29 March 2024 by:
Belnikolov and partners OOD -
Petya Belnikolova
Executive Member of the
Board of Directors:
Viktor Spiriev
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 2023
The notes on pages 7 to 91 are an integral part of these financial statements.
Separate statements of cash flows
Prepared on 29 March 2024 by:
Belnikolov and partners OOD -
Petya Belnikolova
Executive Member of the
Board of Directors:
Viktor Spiriev
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 2023 2022
BGN ‘000 BGN ‘000
Operating activities
Cash receipts from customers 334 207 335 476
Cash paid to suppliers (328 558) (323 178)
Cash paid to employees and social security institutions (16 998) (16 546)
Payments related to employees’ personal income tax (1 122) (1 037)
Proceeds from tax refunds, net 31 176 30 024
Paid corporate income tax (440) (1 657)
Other cash payments for operating activities (521) (1 111)
Net cash flow from operating activities 17 744 21 971
Investing activities
Purchase of property, plant and equipment (5 630) (3 945)
Purchase of intangible assets (2 006) (2 641)
Acquisition and increase in the share capital of subsidiaries (280) (14 954)
Proceeds from sale of shares in other entities 34 - 1 956
Loans granted (4 492) (3 831)
Proceeds from loan repayments 2 006 3 775
Interest received 152 238
Dividends received 8 346 -
Advances received for the sale of subsidiary 24.2 - 5 526
Net cash flow from investing activities (1 904) (13 876)
Financing activities
Proceeds from borrowings 39 214 422 171 826
Repayments of borrowings 39 (203 676) (170 962)
Payments under a convertible bond issue 39 (10 959) -
Repurchased own shares (29) (140)
Payment of principal of lease liabilities 8 (937) (901)
Interest paid (6 772) (3 763)
Dividends paid 35.2 (3 992) (5 434)
Other cash inflows/(outflows) from financing activities 708 (728)
Net cash flow from financing activities (11 235) (10 102)
Net change in cash and cash equivalents 4 605 (2 007)
Cash and cash equivalents, beginning of the year 2 527 4 237
Foreign exchange profit on cash and cash equivalents (72) 297
Cash and cash equivalents, end of the year 15 7 060 2 527

Monbat AD
Separate financial statements
31 December 2023
7
N otes to the separate financial statements
1. General information and nature of operations
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 31.12.2023, the composition of the Board of Directors of the Company is the
following:
1. Chavdar Dochev Danev – Chairman
2. Petar Nikolov Bozadzhiev
3. Kyle Anderson
4. Petar Hristov Petrov
5. Viktor Stanimirov Spiriev – Executive Member
6. Evelina Pavlova Slavcheva
As of 12.07.2023 Florian Huth is not a member of the Board of Directors.
The number of employees as at 31.12.2023 is 430 people.
As at 31.12.2023, 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 separate 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.
Statement of compliance with IFRS, as adopted by the EU
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.

Monbat AD
Separate financial statements
31 December 2023
8
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
(BGN ‘000 thousand) (including comparative information for 2022) unless otherwise
stated.
In addition, when there is a retrospective restatement or reclassification of items in the
separate 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 2023 are in process of being prepared.
Influence of macroeconomic and geopolitical factors
The war between Russia and Ukraine, which started on February 24, 2022, caused a wide
international response and affected the countries of Europe in various aspects. The
ongoing hostilities between Russia and Ukraine, the imposition of sanctions and
restrictions by the European Union, the United States, Canada, Great Britain and other
countries against Russia, the Russian Central Bank, credit institutions, companies,
individuals, caused significant turmoil in the financial markets in 2022 d. As a result, the
year 2023 brought continued geopolitical tensions, recalibration of economic growth,
inflation, rising interest rates in the US and Europe, and rising commodity prices.
Monbat AD has no net investments, subsidiaries or assets in Russia, Belarus and Ukraine,
but trades with companies based in Ukraine.
To address the aforementioned circumstances, the Company undertook measures,
through which to limit the negative consequences on the financial results for 2022 and
2023.
Risk analysis and measures and actions taken:
• In 2023, there was a normalization of the markets of the main products and goods with
which the Company trades, compared to 2022. The following market development was
observed:
o Increased demand for starter car batteries in Western European markets, where
historic record sales of this type of product were achieved. In 2022, demand for
these products was significantly depressed by sharp inflationary movements in the
region and the associated shift in consumer behaviour.
o Substantial decline in sales of larger and more profitable semi-cyclical batteries,
representing mainly purchased goods, due to the normalization of the delivery
period of US manufacturers of this type of batteries, which was drastically extended
in 2022 due to the logistical challenges during the period, and respectively the
reorientation of the market back towards US products.
o Decline in stationary (telecom) battery sales due to substantial volumes to leading
telecom operators and system integrators in Russia in the first two months of 2022,
i.e. just before the start of the war in Ukraine.
• In 2023, the Company has no sales to Russia, while sales to Ukraine represent 4.7% of
total revenue for 2023 (2022: Russia – 2.2%, Ukraine – 2.1%).
• In relation to supply chains, the Company is not directly dependent on Russian, Ukrainian
or Belarusian suppliers.

Monbat AD
Separate financial statements
31 December 2023
9
• As a result of inflationary processes and market volatility, in 2023 the average market
price of lead was around 1 977 EUR/MT (2022: 2 041 EUR/MT). Monbat AD addresses this
volatility and dependence of the price of lead on stock market indices by applying a
standard indexation of the selling prices of its production to all its counterparties.
• The main c ustomers of the Company have not had financial difficulties directly related
to the military conflicts in Ukraine and the Middle East. The assessment of the collectability
of trade receivables as of 31 December 2023, is good.
• 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 advance payments on all export sales to Ukraine following the outbreak of
hostilities in the country. Although towards the end of 2023 and 2022, there are no
significant delays in the collection of receivables from customers, the activity of several
specific customers in Russia and Ukraine, where even in pre-war periods a delay in
collection was noticeable was further complicated by the military conflict and in this
connection the Company has recognized impairment costs related to the trade receivables
from the same in the amount of BGN 0 in 2023 and BGN 260 thousand in 2022. As of
December 31, 2023, the Company has trade receivables from Ukrainian and Russian
customers (net of impairments) in the amount of BGN 10 148 thousand.
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.
Climate matters
This year, the Company reports on climate-related issues, considering this reporting as a
long-term commitment to develop and deepen in the future.
Legislation, regulatory authorities, the Company's counterparties and users of non-
financial information pay close attention to climate change. The European Union adopted
the European Green Deal to transition to a more sustainable economic and financial
system, and more detailed sustainability disclosures are expected in the coming years as
part of the adopted European Sustainability Reporting Standards.
Through its production process, the Company emits no significant direct or indirect
emissions into the air. Since Monbat AD is not a large emitter of carbon dioxide, the
Company does not participate in the EU emissions trading system. However, Management
recognizes the important role of the Company in mitigating the effects of climate change
and adapting to it. Mitigation is concerned with limiting the rate and magnitude of climate
change, and adaptation is concerned with the process of adjusting to actual or expected
effects of climate change.
The Company is in the process of analyzing the role of business and the activities carried
out and their degree of impact, possible risks and ways to actively participate in decision-
making related to climate change.

Monbat AD
Separate financial statements
31 December 2023
10
At the same time, the following steps have been taken during the implementation of the
activity, with a view to reducing greenhouse emissions from the energy consumption of
the building stock and transport:
- Optimizing fuel consumption for heating and transport. All newly purchased cars
meet EURO V and VI emission standards.
- Optimization of heating, ventilation, cooling, lighting systems. Replacement of
heating equipment with more energy efficient ones.
- Sanitation of buildings during renovations.
Through its annual capital expenditure program, the Company plans and implements
investments in new production facilities or the improvement of existing facilities, through
which optimization of the consumption of energy resources is achieved.
As of 31 December 2023, the Company has not identified significant risks caused by
climate change that could have a direct negative and material impact on the Company's
separate financial statements. Management continually assesses the impact of climate-
related issues.
When determining the financial position of the Company as of 31 December 2023, climate-
related issues were considered and taken into account when performing the impairment
tests, evaluating the useful life and determining the fair value of non-current assets and
when determining the net realizable value of inventories.
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 ongoing
military conflicts.
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 judgment supported by
the Company's historical experience with financial institutions as well as ongoing
negotiations with banks, so the maturity of all short-term borrowings (note 19) is expected
to be renegotiated by a minimum of 12 months from their maturity date or the same will
be refinanced with attracted resources under terms of 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.

Monbat AD
Separate financial statements
31 December 2023
11
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 separate financial statements for
the annual period beginning 1 January 2023 but do not have a significant impact on the
Company’s financial performance or position:
• IFRS 17 Insurance contracts 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” 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 IAS 12 “Income taxes: International Tax Reform – Pillar
Two Model Rules”, effective from 1 January 2023, adopted by the EU
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 separate 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 separate 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:
• Amendments to IAS 1 “Presentation of financial statements: Classification
of liabilities as current or non- current”, effective from 1 January 2024, adopted by
the EU
• Amendments to IAS 1 “Presentation of financial statements: Non -current
liabilities with covenants”, effective from 1 January 2024, adopted by the EU
• Amendments to IFRS 16 “Leases: Lease Liability in a Sale and Leaseback”,
effective not earlier than 1 January 2024, adopted by the EU
• Amendments to IAS 7 “Statement of cash flows” and IFRS 7 “Financial
instruments: Disclosures: supplier finance arrangements”, effective from 1 January
2024, not yet adopted by the EU
• Amendments to IAS 21 “The effects of changes in foreign exchange rates:
Lack of exchangeability”, effective from 01 January 2025, not yet adopted by the
EU

Monbat AD
Separate financial statements
31 December 2023
12
3. Significant accounting policies
3.1. General
The most significant accounting policies that have been used in the preparation of these
separate 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.
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 separate financial statements or reclassifies items in the
separate 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.

Monbat AD
Separate financial statements
31 December 2023
13
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.
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.

Monbat AD
Separate financial statements
31 December 2023
14
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.
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

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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
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.

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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
• 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.

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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
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- current 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.

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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.
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.

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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.
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.

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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.
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.

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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.
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.

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31 December 2023
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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
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'.

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31 December 2023
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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:
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.

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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.
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.

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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 Company 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:
• 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.

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31 December 2023
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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.
3.16. Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, current bank accounts and term
deposits up to 3 months.

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31 December 2023
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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”.
- Interest expenses are included under “Finance costs” in the Statement of profit or
loss.

Monbat AD
Separate financial statements
31 December 2023
28
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 2023
29
3.21. Non-current assets and liabilities classified as held for sale and
discontinued operations
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, or when the Company intends to
dispose of assets or business activity in certain geopraphical regions, the assets or
disposal groups are classified as held for sale/discontinued operations 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 de ferred 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 separate 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.

Monbat AD
Separate financial statements
31 December 2023
30
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
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 2023 will be
remitted by an order of the Minister of Environment and Water in 2024, 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 № RD 601 of 17.08.2023 of the Minister of Environment and Water, the
accrued product fee for 2022 has been remitted.
3.22.4 Provision for expected credit losses for trade receivables (ECL)
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.

Monbat AD
Separate financial statements
31 December 2023
31
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
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 makes sales to third parties of materials purchased from related
parties. As the Company does not control the materials before they are transferred to
customers and does not exercise discretion in setting the price, Monbat AD acts as an
agent. In these cases, sales revenue is presented net of cost of materials sold.
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).

Monbat AD
Separate financial statements
31 December 2023
32
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).
3.23. Estimation uncertainty
In preparing the separate 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, 2023, the Company's management has performed an impairment
review of its net investment in Monbat Holding GmbH, and the Company's management
believes that there is no need to recognize an impairment (note 7).
As of December 31, 2023, Monbat AD performed impairment tests in accordance with the
requirements of IAS 36 "Impairment of Assets" for its investments in Monbat Immobilien
GmbH. Indications of impairment have been identified due to the specific nature of the
main asset owned by the subsidiary – an investment property in Austria. The management
determined that the book value of the asset exceeds its recoverable amount, based on an
assessment of the property's fair value prepared by a licensed appraiser. For this reason,
the Company reported impairment costs in the amount of BGN 2 944 thousand in 2023
(2022: BGN 2 424 thousand), included in "Loss from discontinued operations" in the
standalone statement of profit or loss (note 7).

Monbat AD
Separate financial statements
31 December 2023
33
In August 2023, the Board of Directors of Monbat AD decided to take actions to terminate
the activities of Energy Batteries Nigeria Ltd., a company operating in Nigeria, distributing
the Company's products on the local market. The Company expects the performance of
Energy Batteries Nigeria Ltd. to be terminated within one calendar year after the end of
the reporting period. As a result of a review of the recoverable amount of the assets
included in the disposal group and the related liabilities, the Company recognizes an
impairment in the amount of BGN 2 063 thousand, included in the line "Loss from
discontinued operations" in the standalone statement of profit or loss (note 7).
In December 2023, the Board of Directors of Monbat AD decided to take actions to
terminate the activities of Monbat South Africa Proprietary Ltd., a company operating in
South Africa, distributing the Company's products on the local market. The Company
expects the activities of Monbat South Africa Proprietary Ltd. to be terminated within one
calendar year after the end of the reporting period. As a result of a review of the
recoverable amount of the assets included in the disposal group and the related liabilities,
the Company recognizes an impairment in the amount of BGN 1 261 thousand, included
in the line "Loss from discontinued operations" in the standalone statement of profit or
loss (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 2023, 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.
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 BGN 34 057 thousand (2022: BGN
36 043 thousand) 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.

Monbat AD
Separate financial statements
31 December 2023
34
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 31 December, 2023 and 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 31 December
2023 and 2022, 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
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, 2023, the Company has
assessed the amount of reimbursement obligations for expected returned goods as
immaterial (2022: immaterial).

Monbat AD
Separate financial statements
31 December 2023
35
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.
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 December 2023 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 January 2023 706 713 5 814 1 728 8 961
Newly acquired assets, purchased 254 - 1 363 389 2 006
Transfer from Property, plant and
equipment - -
-
864 864
Balance as of 31 December 2023 960 713 7 177 2 981 11 831
Amortization
Balance as of 1 January 2023 (457) (583) - (122) (1 162)
Amortization expense (233) (34) - (24) (291)
Balance as of 31 December 2023 (690) (617) - (146) (1 453)
Balance as of 31 December 2023 270 96 7 177 2 835 10 378

Monbat AD
Separate financial statements
31 December 2023
36
As of 31 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 January 2022 556 713 4 415 710 6 394
Newly acquired assets, purchased 222 - 1 399 1 062 2 683
Assets written off (72) - - (44) (116)
Balance as of 31 December 2022 706 713 5 814 1 728 8 961
Amortization
Balance as of 1 January 2022 (304) (547) - (103) (954)
Amortization expense (153) (36) - (19) (208)
Balance as of 31 December 2022 (457) (583) - (122) (1 162)
Balance as of 31 December 2022 249 130 5 814 1 606 7 799
Advances for licensing 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 recorded value in relation to the purchased license rights as of 31.12.2023 amounts
to BGN 7 177 thousand or USD 4 000 thousand. (2022: BGN 5 814 thousand or USD 3
250 thousand)
In 2023 and 2022, 3 of the agreed license installments of USD 250,000 each were made,
with a total value of BGN 1 363 thousand (2022: BGN 1 399 thousand).
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, 2023, advances amounting
to BGN 887 thousand (USD 459 thousand) have been paid under this contract, presented
under category “Others” . The production of the prototypes is expected to be completed in
2024. Licensing rights and prototypes have an indefinite useful life (note 3.9)
In accordance with IAS 36, since the licensing rights have an indefinite useful life, following
the tests for impairment as of 31.12.2023, 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 cash
inflows and outflows. A discount rate of 12% was used. The developed model includes all
expected contract costs for maintaining the license after its commercialization.
The Company already has specific 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 for intangible assets 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 2023
37
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 January 2023 7 262 27 460 93 800 6 457 3 339 3 140 2 999 144 457
Newly acquired assets - 63 198 84 27 108 4 979 5 459
Transfer of assets - 843 3 554 48 6 119 (4 570) -
Transfer to Intangible Assets - - - - - - (864) (864)
Assets written off - - - - (34) (3) (436) (473)
Balance 31 December 2023 7 262 28 366 97 552 6 589 3 338 3 364 2 108 148 579
Depreciation
Balance 1 January 2023 - (10 777) (76 596) (2 661) (2 960) (2 844) - (95 838)
Depreciation - (1 058) (4 272) (257) (113) (111) - (5 811)
Depreciation written-off - - - - 34 - - 34
Balance 31 December 2023 - (11 835) (80 868) (2 918) (3 039) (2 955) - (101 615)
Carrying amount 31 December 2023 7 262 16 531 16 684 3 671 299 409 2 108 46 964

Monbat AD
Separate financial statements
31 December 2023
38
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 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 December 2022 7 262 27 460 93 800 6 457 3 339 3 140 2 999 144 457
Depreciation
Balance 1 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 December 2022 - (10 777) (76 596) (2 661) (2 960) (2 844) - (95 838)
Carrying amount 31 December 2022 7 262 16 683 17 204 3 796 379 296 2 999 48 619

Monbat AD
Separate financial statements
31 December 2023
39
As of 31 December 2023 and 2022, 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 most significant 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 December 2023, the expenses for the acquisition of non-current assets are at the
amount of BGN 2 108 thousand (2022: BGN 2 999 thousand) and are distributed as
follows:
· Gas transmission network for alternative fuel – BGN 771 thousand (2022 – BGN 257 thousand)
· Water management facility for the treatment of underground water – BGN 639 thousand (2022 – none)
· Pipe route for settling of a push pipeline – BGN 220 thousand (2022 – 0 none)
· Strip line for the production of wide rolled strip – BGN 0 (2022 – BGN 654 thousand)
· Construction of factory for casting lead stripes – BGN 0 (2022 – BGN 422 thousand)
· Other reconstructions – BGN 478 thousand (2022 – 1 666 thousand)
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 2023 5 518 4 426 5 870 188 16 002
Carrying amount on
31 December 2022 3 268 3 147 7 562 654 14 631
All property, plant & equipment of the Company is located in Bulgaria.

Monbat AD
Separate financial statements
31 December 2023
40
6. Investments in subsidiaries and associates
Monbat AD has the following investments in subsidiaries and associates:
Country Main activities 2023 Share 2022 Share
BGN
‘000 %
BGN
‘000 %
Name of the subsidiary
Monbat Recycling EAD Bulgaria Lead recycling 50 829 100 50 829 100
Societe Nouvelle de
l'accumulateur Nour
Tunisia Production of
batteries and lead
recycling 21 280 60 21 280 60
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 Romania Srl 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
ARTMonbat AD Bulgaria Batteries 26 51 26 51
Monbat New Power AD Bulgaria Production of
batteries 25 51 25 51
Energy Battery Nigeria
Ltd, net of impairment
Nigeria Trade of batteries
- 100 - 100
Monbat SA Proprietary
Ltd, net of impairment
South Africa Trade of batteries
- 51 146 51
80 424 80 570
Name of the associated
entity
Leventa OOD Bulgaria Services 2 761 46 2 481 46
Total investments in
subsidiaries and
associates 83 185 83 051
The investments in subsidiaries and associates are presented 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 2023 the Company has not received dividend from its investments
in subsidiaries and associates. The Company has no contingent liabilities or other liabilities
related to investments in subsidiaries and associates (note 38).
As of December 31, 2023, the investments of Monbat AD in the subsidiary companies
Monbat Holding GmbH, Monbat Immobilien GmbH, Energy Battery Nigeria Ltd. and
Monbat SA Proprietary Limited are presented as Non-current assets, included in disposal
groups (note 7).
As of December 31, 2022, the Company's investments in the subsidiaries Monbat
Holding GmbH and Monbat Immobilien GmbH are presented as Non-current assets
included in disposal groups classified as held for sale (note 7).

Monbat AD
Separate financial statements
31 December 2023
41
7. Non-current assets and liabilities included in disposal groups groups, held
for sale
7.1. Monbat Holding GmbH, Germany
In May 2022 the Company entered into an agreement to sell 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.
As a result of a sales agreement with Britishvolt, the Company received an advance
payment of a EUR 3 000 thousand as a non-refundable deposit /EUR 2 825 thousand net
after deducting legal and consulting fees/.
In January 2023, Britishvolt entered legal administration under the UK Insolvency Act 1986
to restructure the company's operations due to insolvency arising from cash flow problems.
In late February 2023, the company Recharge Industries acquired Britishvolt as part of
the administration process.
On 22 March 2023, Monbat AD, together with its subsidiary Monbat Recycling Bulgaria
EAD, which owns 10% of the capital of Monbat Holding GmbH, sent a notice to Britishvolt
to terminate the contract for the sale of Monbat Holding GmbH, due to non-fulfillment of
the agreed conditions by Britishvolt side. As a result of the termination of the sales
contract, the company has recognized income in the amount of BGN 5 281 thousand and
current tax expense in the amount of BGN 526 thousand on the line "Loss from
discontinued operations" in the separate statement of profit or loss. The amount of
revenue recognized represents 90% of the amount of the non-refundable deposit received
by Britishvolt in 2022. The remaining 10% of the received deposit (BGN 587 thousand) is
presented by Monbat AD as a liability to Monbat Recycling EAD on the line "Related party
payables" in the separate statement of financial position. In 2023, the Company
recognized expenses related to the sale of Monbat Holding GmbH in the amount of BGN
208 thousand on the line "Loss from discontinued operations" in the separate statement
of profit or loss.
As of December 31, 2023, the Company's management has not changed its intentions to
sell its investment in Monbat Holding GmbH.
The carrying amount of the assets and liabilities related to the Company's investment in
Monbat Holding GmbH, as well as the income and expenses related to the unrealized sale
in 2023, are as follows:
2023 2022
BGN ‘000 BGN ‘000
Investment in Monbat Holding GmbH 27 265 27 265
Assets included in disposal groups 27 265 27 265
2023 2022
BGN ‘000 BGN ‘000
Trade and other payables 48 -
Tax liabilities 507 -
Liabilities included in disposal groups 555 -

Monbat AD
Separate financial statements
31 December 2023
42
2023 2022
BGN ‘000 BGN ‘000
Income recognized, related to non-refundable deposit 5 281 -
Expenses, related to sale (208) -
Income tax expense (507) -
Result from discontinued operations 4 566 -
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 EUR 7 200 thousand. As at 31 December 2023, 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.
In 2023, based on an assessment prepared by a licensed appraiser of the fair value of the
main asset of the Austrian company - a specific property - Monbat AD recognized an
impairment charge of BGN 2 944 thousand (2022: BGN 3 424 thousand), included in line
"Loss from discontinued operations" in the separate statement of profit or loss.
The Company has granted a loan to Monbat Immobilien GmbH with a maturity date of 31
December 2023 and a utlizied principal amount of BGN 887 thousand. The applicable
interest rate is 5% per annum. The outstanding principal balance at 31 December 2023 is
BGN 0 net of impairment.
The carrying amount of the assets and liabilities related to the Company's investment in
Monbat Immobilien GmbH, as well as the expenses related to this non-current asset, are
as follows:
2023 2022
BGN ‘000 BGN ‘000
Investment in Monbat Immobilien GmbH, net of impairment 9 119 11 602
Deferred tax assets 2 416 -
Assets included in disposal groups 11 535 11 602
2023 2022
BGN ‘000 BGN ‘000
Impairment expense (2 944) (3 424)
Deferred tax income 295 343
Result from discontinued operations (2 649) (3 081)
7.3. Energy Batteries Nigeria Ltd., Nigeria
In August 2023 the Board of Directors of Monbat AD resolved to take action to wind up
the operations of Energy Battieries Nigeria Ltd, a company operating in Nigeria. The
Company expects that the operations of Energy Batteries Nigeria Ltd. will cease within one
calendar year of the end of the reporting period.

Monbat AD
Separate financial statements
31 December 2023
43
As a result of a review of the recoverable amount of the investment, the Company
recognized an impairment charge in the amount of BGN 2 063 thousand. In accordance
with the requirements of IFRS 5 "Non-current assets held for sale and discontinued
operations", the costs related to the discontinuation of the activity of Energy Batteries
Nigeria Ltd . for the current and comparable period are presented on the line "Loss from
discontinued operations" in the separate statement of profit or loss.
The carrying amount of the assets and liabilities related to the Company's investment in
Energy Batteries Nigeria Ltd., as well as the costs related to the cessation of operations,
are as follows:
2023 2022
BGN ‘000 BGN ‘000
Trade receivables net of impairment 143 -
Deferred tax assets 462 -
Assets included in disposal groups 605 -
2023 2022
BGN ‘000 BGN ‘000
Impairment expense (2 063) (1 000)
Deferred tax income 206 100
Result from discontinued operations (1 857) (900)
7.4. Monbat South Africa Proprietary Ltd., South Africa
In December 2023 the Board of Directors of Monbat AD resolved to take action to wind up
the operations of Monbat South Africa Proprietary Ltd., a company operating in South
Africa. The Company expects that the operations of Monbat South Africa Proprietary Ltd.
will cease within one calendar year of the end of the reporting period.
As a result of a review of the recoverable amount of the investment, the Company
recognized an impairment charge in the amount of BGN 1 251 thousand. According to the
requirements of IFRS 5 "Non-current assets held for sale and discontinued operations",
the costs related to the discontinuation of Monbat SA Proprietary Limited for the current
and comparable period are presented on the line "Loss from discontinued operations" in
the separate statement of profit or loss.
The Company has granted a loan to Monbat SA Proprietary Limited with a maturity date
of 31 December 2023 and a principal amount of BGN 978 thousand. The applicable interest
rate is 5% per annum. The outstanding principal balance at 31 December, 2023 is BGN 0
net of impairments.
The carrying amount of the assets and liabilities related to the Company's investment in
Monbat SA Proprietary Limited. as well as the costs related to the cessation of activity are
as follows:
2023 2022
BGN ‘000 BGN ‘000
Trade receivables net of impairment 536 -
Deferred tax assets 125 -
Assets included in disposal groups 661 -

Monbat AD
Separate financial statements
31 December 2023
44
2023 2022
BGN ‘000 BGN ‘000
Trade obligations 151 -
Liabilities included in disposal groups 151 -
2023 2022
BGN ‘000 BGN ‘000
Impairment expense (1 251) -
Deferred tax income 125 -
Result from discontinued operations (1 126) -
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:
Right-of- use assets (BGN ‘000) Buildings
Motor
vehicles
Machinery
and
equipment
Total
As at 1 January 2023 1 543 707 108 2 358
Additions 1 110 375 - 1 485
Written off (211) - - (211)
Depreciation expense (489) (335) (61) (885)
As at 31 December 2023 1 953 747 47 2 747
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

Monbat AD
Separate financial statements
31 December 2023
45
Set out below are the carrying amounts of lease liabilities and the movements during the
period:
2023 2022
Lease liabilities BGN ‘000 BGN ‘000
Long-term liabilities 1 960 1 524
Short-term liabilities 825 854
2 785 2 378
2023 2022
Lease liabilities BGN ‘000 BGN ‘000
2 378 1 021
Additions 1 456 2 166
Written off (215) -
Accrued interest expenses 103 92
Payments (937) (901)
As at 31 December 2 785 2 378
The Company does not have leases that include variable payments.
Future minimum lease payments as at 31 December 2023 are as follows:
Minimum lease payments
Up to 1 Year 1-2 Years 2-3 Years 3-4 Years 4-5 Years Total
BGN ‘000 BGN ‘000 BGN ‘000 BGN ‘000 BGN ‘000 BGN 000
31 December 2023
Lease payments 907 752 651 609 48 2 967
Finance costs (82) (54) (32) (13) (1) (182)
Net value 825 698 619 596 47 2 785
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
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:
2023 2022
BGN ‘000 BGN ‘000
Depreciation expense of right-of-use assets 885 849
Interest expense on lease liabilities (note 32) 103 92
Total amount recognized in profit or loss 988 941
The Company’s total cash outflows related to leases amounts are BGN 937 thousand in
2023 (2022: BGN 901 thousand).

Monbat AD
Separate financial statements
31 December 2023
46
9. Income tax
The main components of income tax expense for the years ended 31 December 2023
and 2022 are:
2023 2022
BGN ‘000 BGN ‘ 000
Current income tax expense (592) (669)
Deferred tax income 140 63
Income tax expense recognized in profit or loss (452) (606)
The applicable income tax rate for 2023 is 10% (2022: 10%).
The reconciliation between income tax expense and accounting profit multiplied by the
applicable tax rate for the years ended 31 December 2023 and 31 December 2022 is set
out below:
2023 2022
BGN ‘000 BGN ‘000
Profit before tax 4 426 5 806
Tax rate 10% 10%
Expected tax expense (443) (581)
Effect of expenses not recognized for tax purposes (149) (88)
Recognition of deferred taxes 140 63
Tax expense (452) (606)
Income tax includes
Current tax expenses (592) (669)
Effect of temporary differences 140 63
Current income tax expense (452) (606)
Effective tax rate 10% 10%
The deferred tax balances as of 31.12.2023 and 31.12.2022 are related to the following:
Statement of financial
position
Statement of profit
or loss
BGN ‘000 2023 2022 2023 2022
Deferred tax liabilities
Subsequent valuation of assets and
liabilities (1 105) (1 355) 250 90
Deferred tax assets
Government grants 2 23 (21) (15)
Annual paid leave liability (29) 30 (59) 28
Impairment of receivables 170 824 5 41
Warranty provisions 14 49 (35) (81)
Impairment of investments - 2 343 - -
Deferred tax income 140 63
Deferred tax assets/liabilities, net (948) 1 914

Monbat AD
Separate financial statements
31 December 2023
47
Calculation of deferred tax liabilities:
2023 2022
BGN ‘000 BGN ‘000
Deferred tax assets at 1 January 1 914 1 408
Deferred taxes recognized in profit or loss for the period 140 63
Reclassified to disposal groups (3 002) -
Other - 443
Deferred tax assets/(liabilities) at 31 December (948) 1 914
The company has not recognized tax losses that can be carried forward and deducted from
future taxable profits.
10. Inventories
Inventories recognized in the statement of financial position can be analyzed as follows:
2023 2022
BGN ‘000 BGN ‘000
Materials 17 545 12 775
Production 10 297 14 020
Work in progress 5 930 9 130
Goods 285 118
34 057 36 043
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 Bulgaria AD (note 19). The carrying amount of the inventories, pledged as a
collateral for borrowings (note 19), amounts to BGN 20 859 thousand as at 31.12.2023
(31.12.2022 – BGN 20 868 thousand).
11. Short-term financial assets
In the reporting periods under review, short-term financial assets include equity
investments and loans:
2023 2022
BGN ‘000 BGN ‘000
Shares 50 50
Trade loan granted to Advanced Research and technologies 92 99
142 149

Monbat AD
Separate financial statements
31 December 2023
48
Contract from 29.04.2021 with Advanced Research and Technologies
Utilized principal: BGN 92 thousand
Contract duration: four months
Interests & commissions: fixed annual interest rate
Balance of the principal as of 31.12.2023: BGN 92 thousand.
Redemption: Single payment at the maturity date of the contract.
12. Trade receivables
2023 2022
BGN ‘000 BGN ‘000
Trade receivables, gross 48 403 48 214
Expected credit losses (3 510) (3 489)
44 893 44 725
All trade receivables are short-term. The net carrying value of trade receivables is
considered a reasonable approximation of their fair value. During 2023, trade receivables
amounting to BGN 29 thousand (2022: BGN 52 thousand) 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
BGN 50 thousand in 2023 (2022: BGN 411 thousand), that has been recognized within
“Impairment of financial assets ” in the separate statement of profit or loss.
The movement in the allowance for credit losses can be reconciled as follows:
2023 2022
BGN ‘000 BGN ‘000
Balance on 1 January (3 489) (3 078)
Receivables written-off 29 -
Impairment expense (50) (411)
Balance on 31 December (3 510) (3 489)
The carrying amount of trade receivables pledged as collateral for loans (Note 19)
amounts to BGN 23 482 thousand as of 31 December 2023 (2022: BGN 24 178
thousand).
13. Tax receivables
2023 2022
BGN ‘000 BGN ‘000
VAT receivables 2 591 4 319
Personal Income Tax 29 117
Customs duties 1 35
Withholding tax - 1
2 621 4 472

Monbat AD
Separate financial statements
31 December 2023
49
14. Other receivables
2023 2022
BGN ‘000 BGN ‘000
Guarantees 1 129 1 572
Prepayments 199 389
Advances to employees 51 10
Other 217 240
1 596 2 211
As of 31 December 2023, the Company has provided guarantees in favor of counterparties
in the form of deposited cash in the amount of BGN 611 thousand (2022: BGN 1 098
thousand)
15. Cash and cash equivalents
Cash and cash equivalents include the following components
2023 2022
BGN ‘000 BGN ‘000
Cash at bank and in hand
- EUR 2 298 1 703
- BGN 4 180 464
- USD 581 358
- GBP 1 2
7 060 2 527
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 separate
financial statements of the Company.
As at 31 December 2023, the Company has blocked cash totaling BGN 200 thousand in
cash under the Waste Management Act (31 December 2022 – BGN 200 thousand).
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 BGN. 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.
2023 2022
Number of
shares
Number of
shares
Number of shares issued and fully paid:
At the beginning of the year 38 973 000 39 000 000
Reacquired own shares (6 545) (27 000)
Total number of shares authorized as at 31 December 38 966 455 38 973 000

Monbat AD
Separate financial statements
31 December 2023
50
The main shareholders of the Company are as follows:
31
December
31
December
31
December
31
December
2023 2023 2022 2022
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 2 785 650 7.14 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 6 755 954 17.33 6 788 804 17.41
39 000 000 100 39 000 000 100
Repurchased own shares (33 545) (0.08) (27 000) (0.07)
38 966 455 99.92 38 973 000 99.93
The total number of shares and votes held directly and through related parties by Prista
Oil Holding EAD is 19 422 021 shares or 49.87%. 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 has adopted a decision to carry out a buyback of own
shares up to 3% of the registered capital or up to 1 170 000 shares at a minimum buyback
price of BGN 4.51 and a maximum buyback price of BGN 8.75 with an initial term of
26.09.2022 and a deadline of up to 180 calendar days with the possibility of extending the
deadline.
In 2023, the Company repurchased 6 545 shares (2022: 27 000 shares).
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 BGN 28 476 thousand
at 31.12.2023 and BGN 28 498 thousand at 31.12.2022.

Monbat AD
Separate financial statements
31 December 2023
51
16.3 General reserves
Legal
reserves
Other
reserves
Total
reserves
BGN ‘000 BGN ‘000 BGN ‘000
Balance on 1 January 2022 3 900 59 966 63 866
Balance on 31 December 2022 3 900 59 966 63 866
Balance on 31 December 2023 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 31.12.2023 amount to BGN 59 966 thousand 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:
2023 2022
BGN ‘000 BGN ‘000
Carrying amount on 1 January 486 1 297
Reversal of provisions (233) (815)
Accrued provision - 4
Carrying amount on 31 December 253 486
2023 2022
BGN ‘000 BGN ‘000
Non-Current
Carrying amount 147 185
2023 2022
BGN ‘000 BGN ‘000
Current
Carrying amount 106 301
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.

Monbat AD
Separate financial statements
31 December 2023
52
18. Employees’ remuneration
18.1 Payroll expenses
2023 2022
BGN ‘000 BGN ‘000
Salary expenses 15 886 14 548
Social security expenses 2 782 2 683
Payroll expenses 18 668 17 231
18.2 Personnel payables
Personnel payables recognized in the statement of financial position consist of the
following:
2023 2022
BGN ‘000 BGN ‘000
Salaries payables 1 160 1 129
Social security payables 352 354
Annual paid leave liability 541 298
Personnel payables 2 053 1 781
19. Borrowings
Borrowings include the following financial liabilities, measured at amortized cost:
Current Non-current
2023 2022 2023 2022
BGN ‘000 BGN ‘000 BGN ‘000 BGN ‘000
Bank loans 89 643 70 200 3 912 11 733
Loans from other financial
institutions 1 334 936 1 459 881
Total carrying amount 90 977 71 136 5 371 12 614

Monbat AD
Separate financial statements
31 December 2023
53
19.1 Summary of bank loan contracts
1. UBB AD
Contract dated 25.02.2014
Maturity date: 15.02.2016
Loan amount: EUR 3 200 000 revolving loan
Interest: 1-month EURIBOR + mark-up
Collateral: Rank collateral of mortgage of own real estate, cadaster № 48489.5.597,
cadaster № 48489.5.281, cadaster № 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: 31.07.2027
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 31.12.2023: BGN 17 700 049 or EUR 9 049 892 – entirely short-
term.
2. Eurobank Bulgaria AD
Contract № 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
With an annex dated 13.01.2023, valid until 30.09.2023, the amount of the loan is
increased to BGN 30 706 381.
Maturity date: 31.01.2024, with an annex dated 2024 extending the term to 30.06.2024.
Utilized amount as of 31.12.2023: BGN 18 962 544 – entirely short-term.
3. Eurobank Bulgaria AD
Contract № 100 -972 / 23.11.2010
Maturity date: 23.11.2011
Amount borrowed: EUR 1 000 000 working capital loan
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 № 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 № RD -18-19-/05.04.2006 of the Procurator of AK.
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.
Maturity date: 31.01.2024, extended to 30.06.2024 with an annex dated 2024
Amount borrowed: BGN 1 955 830
Interest: Variable reference interest rate + mark-up
Collateral: Promissory Note for the amount of BGN 1 955 830
Utilized amount as of 31.12.2023: BGN 1 930 570 – entirely short-term.

Monbat AD
Separate financial statements
31 December 2023
54
4. DSK Bank EAD
Contract №1675/16.09.2015
Maturity date: 10.09.2024
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 31.12.2023 at the amount of EUR 2 500 000 or BGN 4 889 575 -
entirely short-term.
5. DSK Bank EAD
Contract №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: 10.09.2024
First rank pledge on the fixed assets of Monbat AD
Next in line special pledge on receivables.
Utilized amount as of 31.12.2023: BGN 8 999 883 – entirely short-term.
6. UBB AD
Contract dated 09.11.2015
Maturity date: 15.12.2025
Loan amount: BGN 490 000 overdraft
Interest: Variable reference interest rate + mark-up
Collateral: No collateral
Utilized amount as of 31.12.2023: BGN 487 239 – entirely short-term.
7. Eurobank Bulgaria AD
Contract 359/2017 dated 05.10.2017
Loan amount: EUR 2 556 459 credit line
Interest: 3 M EURIBOR + mark-up
Maturity date: 31.01.2024
Collateral: First pledge agreement for Monbat’s receivables from the third parties.
Utilized amount as of 31.12.2023: BGN 2 196 657 or EUR 1 123 133 – entirely short-term.
8. UBB AD
Contract 20F-00428 dated 10.04.2020
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 31.12.2023 and final
repayment until 31.12.2023 and with the right to draw down the second sub-limit in case
of successful review, which the bank will carry out until 31.12.2023
Maturity date: 31.07.2024
Utilized amount as of 31.12.2023: BGN 3 911 018 or EUR 1 999 672 – entirely short-term.

Monbat AD
Separate financial statements
31 December 2023
55
9. UBB AD
Contract dated 10.04.2020
Maturity date: 30.09.2026
Loan amount: EUR 13 000 000 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 31.12.2023.
After a successful review, the maturity date is 30.07.2025.
Utilized amount as of 31.12.2023: BGN 7 823 320 or EUR 4 000 000 of which BGN 3 911
660 (EUR 2 000 000) is short-term.
10. Investbank AD
Contract dated 21.07.2021
Maturity date: 26.03.2024, extended by one year with annex dated 2024
Loan amount: EUR 5 000 000 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.
Utilized amount as of 31.12.2023: BGN 9 779 150 (EUR 5 000 000) - entirely short-term.
11. Investbank AD
Contract dated 25.02.2022.
Maturity date: 26.03.2024, extended by one year with annex dated 2024
Loan amount: EUR 5 000 000 credit line
Interest: 3 M EURIBOR + mark-up
Collateral:
First rank contractual mortgage of a property with an area of 48489,11,537 an area of
782 sq. m., owned by Monbat Recycling EAD.
First rank pledge on current and future receivables available in all open accounts held by
Monbat AD, Monbat Recycling EAD and Prista oil Holding EAD
Pledge on receivables on all borrower's accounts opened in the bank; insurance with BAEZ,
covering the exposure under the contract up to EUR 4 million.
Utilized amount as of 31.12.2023: BGN 9 779 150 (EUR 5 000 000) - entirely short-term

Monbat AD
Separate financial statements
31 December 2023
56
12. UBB AD
Contract 20F-00102 dated 01.02.2023
Maturity Date 01.08.2024
Loan amount: EUR 437 840 EU
Type of credit: Investment
Interest: 3 M EURIBOR + mark-up
Collateral: Pledge on fixed assets for the amount of 437 840 EUR situated on an area of
48489,5,597, which are gas installation
Utilized amount as of 31.12.2023: BGN 644 041 or EUR 329 292 – entirely short-term.
13. UBB AD
Contract 20F-00103 dated 01.02.2023
Maturity Date 01.02.2024
Loan amount: EUR 97 298 EUR
Type of credit: VAT credit line
Interest: 3 M EURIBOR + mark-up
Collateral: Pledge on receivables
Utilized amount as of 31.12.2023: BGN 0
14. UBB AD
Contract 23F-000767 dated 21.08.2023.
Date of maturity: 14.08.2024.
Credit amount: 3 500 000 EU
Type of credit : Investment Type
Interest: 1M EURIBOR+add ons
Collateral: Land property with identifier 72624.603.372 property of Start AD
Utilized amount as of 31.12.2023: BGN 6 441 125 or EUR 3 293 295 – entirely short-
term).
12.Bank credit card accounts with credit limits BGN 50 000 and utilized amounts as of
31.12.2023 at the amount of BGN 10 thousand.
According to the agreements concluded with DSK Bank EAD under contract №1674 /
16.09.2015 and UBB AD 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 should be lower than 3. The preliminary unaudited consolidated financial
statements of the Company show that the Company is in violation of this covenant. The
loan is classified as 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:
16. UBB Interlease EAD
Contract dated 18.10.2019
Maturity Date: 19.11.2024
Amount of Credit: EUR 1 271 250 credit line
Interest: Fixed interest
Collateral: assembly line for lead-acid accumulators and lead-acid furnace
Utilized amount to 31.12.2023: EUR 211 875 or BGN 414 391, entirely short-term

Monbat AD
Separate financial statements
31 December 2023
57
17. 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 31.12.2023: EUR 44 000 or BGN 86 056, entirely short-term
18. UBB Interlease EAD
Contract dated 26.11.2021
Maturity Date: 26.11.2025
Amount of credit: EUR 420 366 credit line
Interest: Fixed interest
Collateral: 13 machines
Utilized amount to 31.12.2023: EUR 170 100 or BGN 332 687 from which BGN 164 000 is
short-term.
19. 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 31.12.2023: EUR 47 018 or BGN 91 960, entirely short-term
20. 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 up to 31.12.2023: EUR 858 292 or BGN 1 678 673 of which BGN 557 000
is short-term.
21. OTP Leasing
Contract dated 18.01.2023
Maturity Date: 05.11.2028
Amount of credit: EUR 96 150
Type of credit: credit line for fixed assets
Interest: Variable reference interest rate + mark-up
Collateral: Installation for reverse osmosis
Utilized amount up to 31.12.2023: EUR 96 150 or BGN 188 000 of which BGN 21 000 is
short-term.

Monbat AD
Separate financial statements
31 December 2023
58
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 BGN 4 227 thousand
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 Bulgarian
economy” worth BGN 4 112 thousand. The value of the grant under the project procedure
is BGN 2 053 thousand 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:
2023 2022
BGN ‘000 BGN ‘000 BGN ‘000 BGN ‘000
Current Non-
Current
Current Non-
Current
Government grants received for
non-current assets 204 90 204 295
204 90 204 295
2023 2022
BGN ‘000 BGN ‘000
On 1 January 499 653
Recognized in the separate statement of profit or loss (Note 26) (205) (154)
On 31 December 294 499
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.

Monbat AD
Separate financial statements
31 December 2023
59
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 60 th 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 60 th
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 60 th month after issuance.
The convertible bond liabilities can be presented in the following way:
2023 2022
BGN ‘000 BGN ‘000
Non-
current
Non-
current
Carrying amount of amortized bond liability 26 872 42 265
Fair value of conversion option - 5 280
26 872 47 545
2023 2022
BGN ‘000 BGN ‘000
Current Current
Carrying amount of amortized bond liability 16 438 10 959
Interest liability 1 377 859
Fair value of a conversion option 2 650 -
20 455 11 818
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
2023, the Company has reported an income from the change in the fair value at the
amount of BGN 2 640 thousand . The amount is included under art. “Financial instruments
income” in the separate statement of profit or loss (2022: BGN 587 thousand).

Monbat AD
Separate financial statements
31 December 2023
60
The fair values of the conversion options in the 48 th , 66 th & 78 th months after the bond
issuance have been assessed. The 48th month and 66th month post-bond loan conversion
option were not exercised in 2022 and 2023.
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 BGN 47 thousand have been expensed as part of “Interest Expenses” in 2018.
Transaction costs to the amount of BGN 353 thousand 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. 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.
In 2023, 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 2023 is approximately 9% per annum
(2022:8%). 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 2023.
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
2023 2022
BGN ‘000 BGN ‘000
Payables to suppliers 13 151 11 282

Monbat AD
Separate financial statements
31 December 2023
61
23. Tax liabilities
2023 2022
BGN ‘000 BGN ‘000
Tax on expenses 61 29
Withholding tax 12 22
Other taxes - 22
Tax liabilities 73 73
24. Contract liabilities and other liabilities
24.1 Contract liabilities
2023 2022
BGN '000 BGN ‘000
Advances received 3 850 3 729
Contract liabilities 3 850 3 729
24.2 Other liabilities
2023 2022
BGN ‘000 BGN ‘000
Dividends payable 92 35
Other short-term liabilities 110 16
Advance received for sale of subsidiary - 5 866
Other liabilities 202 5 917
24.3 Fair value of hedging instruments
2023 2022
BGN ‘000 BGN ‘000
Fair value of lead LME swap - 364
Other liabilities - 364
In 2023 and 2022, the Company used LME lead cash flow swaps, negotiating a fixed
reference price, to limit the risk of a decline in the London Metal Exchange lead index,
which would affect the selling price of the Company's production. All transactions,
concluded in 2023, as well as all open transactions as of December 31, 2022, were realized
as of December 31, 2023. The open transactions as of December 31, 2022 were valued at
fair value, as a result of which the Company reports a liability of derivative instrument.

Monbat AD
Separate financial statements
31 December 2023
62
25. Revenue from contracts with customers
2023 2022
BGN ‘000 BGN ‘000
Type of revenue
Revenue from sale of finished goods 238 680 235 499
Revenue from sale of goods 72 295 85 409
Revenue from sale of materials 3 119 3 108
Revenue from rendering of services 2 611 2 988
Other revenue 432 3
Total revenue from contracts with customers 317 137 327 007
In 2023, sales of materials to related parties for BGN 41 740 thousand (2022: BGN 50 339
thousand) and reinvoiced services for BGN 888 thousand (2022: BGN 188 thousand) were
reported net of the carrying amount of materials sold and reported materials costs and
reinvoiced expenses. The realized profit of the transactions to the amount of BGN 196
thousand (2022: BGN 46 thousand) is included in line “Revenue from rendering of
services” (Note 3.22.5).
In 2023, revenues from sales to third parties of goods purchased from related parties in
the amount of BGN 12 633 thousand (2022: BGN 0) were recorded net of the book value
of goods sold (Note 3.22.5).
2023 2022
BGN ‘000 BGN ‘000
Geographic markets
Bulgaria 40 283 46 092
Germany 29 861 30 477
Other countries 246 993 250 438
Total revenue from contracts with customers 317 137 327 007
2023 2022
BGN ‘000 BGN ‘000
Timing for revenue recognition
Finished goods and materials transferred
at a point in time 314 094 324 016
Services transferred over time 2 611 2 988
Other income transferred at a point in time 432 3
Total revenue from contracts with customers 317 137 327 007
The Board of Directors is the chief operational decision maker of Monbat AD. 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:
2023 Starter and
stationary
batteries
Technological
waste and
semi-finished
goods
Materials Services Other Total
BGN ‘000 BGN ‘000 BGN ‘000 BGN ‘000 BGN ‘000 BGN ‘000
Segment
revenue: 287 702 23 273 3 119 2 611 432 317 137

Monbat AD
Separate financial statements
31 December 2023
63
2022 Starter and
stationary
batteries
Technological
waste and
semi-finished
goods
Materials Services Other Total
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
In 2023 and 2022 the Company did not have any major customers that would account for
10% or more of the total revenue.
Contract balances
2023 2022
BGN ‘000 BGN ‘000
Trade receivables (note 12) 44 893 44 725
Related party receivables (note 37) 87 342 93 384
Contract liabilities (note 24.1) (3 850) (3 729)
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 2023 the Company recognized revenues from contracts with customers, which were
included in the contract liabilities at the beginning of the period, amounting to BGN 3 570
thousand (2022: BGN 1 578 thousand).
In 2023 and 2022 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 (Note 17).

Monbat AD
Separate financial statements
31 December 2023
64
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.
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
2023 2022
BGN ‘000 BGN ‘000
Revenue from financing under program for compensating
commercial users of electricity 467 7 869
Revenue from financing in connection to investment programs
(Note 20) 205 154
Reversal of provisions (Note 17) 233 -
Others 1 71
906 8 094
The main portion of 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 BGN 467 thousand in 2023 and BGN 7 869 thousand in 2022
is related to governmental grant under Council of Ministers’ Decree (CMD) № 739,
amended with Decree №771 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.

Monbat AD
Separate financial statements
31 December 2023
65
27. Cost of materials
2023 2022
BGN ‘000 BGN ‘000
Raw materials (183 829) (180 957)
Electricity (7 289) (16 601)
Fuels and lubricants (3 240) (4 712)
Spare parts and accessories (1 223) (1 529)
Packaging and other materials (213) (307)
Other costs (792) (859)
(196 586) (204 965)
28. Cost of materials and cost of goods sold and other current assets
2023 2022
BGN ‘000 BGN ‘000
Goods, purchased from Start AD 60 648 76 376
Materials 3 029 1 323
Other goods 965 171
64 642 77 870
29. Hired Services expenses
2023 2022
BGN ‘000 BGN ‘000
Distribution (16 144) (16 991)
Other consulting services (946) (1 080)
Insurance (841) (656)
Repair & maintenance (678) (708)
Governmental fees, customs duties & others (474) (474)
Subscription fees (telephone, internet & others) (582) (514)
Advertising (410) (439)
Fees on civil contracts (261) (364)
Financial audit (210) (197)
Rentals (125) (145)
Other expenses (1 490) (1 272)
(22 161) (22 840)
Other expenses include security costs, courier services and other services.
The remuneration of the independent auditor for 2023 is BGN 210 thousand. During the
year, there were not any tax consultation services or other services unrelated to the audit.
These separate financial statements are prepared in line with the requirements under art.
30 of the Accountancy Act.

Monbat AD
Separate financial statements
31 December 2023
66
30. Gain on the sale of non-current assets
2023 2022
BGN ‘000 BGN ‘000
Sales revenue 6 51
Carrying amount of non-current assets sold (3) (42)
Gain on the sale of non-current assets 3 9
31. Other expenses
2023 2022
BGN ‘000 BGN ‘000
Representative expenses (458) (284)
Inventories written-off (433) (275)
Business trips (405) (319)
Bad debt expense (50) (130)
Donations (27) (20)
Warranty service provision - (4)
Others (974) (965)
(2 347) (1 997)
Other costs include expenses not related to the Company’s main activity, VAT for personal
use, social expenses, penalties and samples costs.
32. Finance income and finance cost
Finance costs for the presented reporting periods can be analyzed as follows:
2023 2022
BGN ‘000 BGN ‘000
Costs for borrowings at amortized cost:
Bank loans at amortized cost: (4 491) (2 129)
Loans from other financial institutions (274) (62)
Convertible bond (3 799) (3 529)
Total interest expenses for financial liabilities, not
carried at fair value through profit or loss (8 564) (5 720)
Interest expense on lease liabilities (note 8) (103) (98)
Other finance costs (740) (786)
Finance costs (9 407) (6 604)
Finance income may be analyzed as follows for the presented reporting periods:
2023 2022
BGN ‘000 BGN ‘000
Interest income on financial assets carried at amortized
cost 2 589 1 572
Total interest income for financial assets, not
carried at fair value through profit or loss 2 589 1 572
Other financial instruments – derivatives, net 1 585 516
Finance income 4 174 2 088

Monbat AD
Separate financial statements
31 December 2023
67
The proportional coupon payments calculated at the coupon rate of the obligation for bonds
for 2023 amounted to BGN 2 754 thousand (2022: BGN 1 763 thousand). Total interest
expense on the convertible bond issue is BGN 3 799 thousand (2022: BGN 3 529
thousand). 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 2023 and 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 (note 24.3)
33. Other financial items
2023 2022
BGN ‘000 BGN ‘000
(Loss)/Gain from exchange rate differences on receivables
and payables (221) 645
Other financial income - 2
Other financial items (221) 647
34. Financial instruments income
2023 2022
BGN ‘000 BGN ‘000
Changes in the fair value of a conversion option, through
fair value as profit or loss
2 640 589
Income from sale of investments - 485
Financial instruments income 2 640 1 074
In 2023 and 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 convertible
bond. The revised effective interest rate starting from 2023 is approximately 9% per
annum (2022: 8%). 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 2023.
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 7.2% interest in the Italian company
COBAT s.p.a. to a third party. The total sale price is BGN 1 956 thousand.
35. Earnings per share and dividends
35.1 Earnings per share
Basic earnings per share are 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 2023
68
2023 2022
Profit from continuing operations, attributable for the
purposes of calculating basic earnings per share (BGN) 3 974 000 5 200 000
Loss from discontinued operations (1 066 000) (3 981 000)
Profit attributable for the purposes of calculating basic
earnings per share (BGN) 2 908 000 1 219 000
Effect of potential diluted shares:
Interest on convertible bond loan (net of tax
effect) 3 419 100 3 176 100
Profit attributable for the purposes of calculating
diluted earnings per share (BGN) 6 327 100 4 395 100
Weighted average number of shares for the purposes
of calculating basic earnings per share 38 970 229 38 993 378
Effect from potential shares with reduced value:
Convertible Bond Loan 10 387 218 11 102 853
Weighted average number of shares for the
purpose of calculating diluted earnings per share 49 357 447 50 096 231
Basic earnings per share from continuing
operations (BGN per share) 0.10 0.13
Basic loss per share from discontinued operations
(BGN per share) (0.03) (0.10)
Basic earnings per share (BGN per share) 0.07 0.03
Potential 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 29 June 2023, a decision
has been taken to distribute a dividend at the amount of BGN 4 000 thousand, which is
part of the profit for 2022 at the amount of BGN 1 219 thousand and previous years at
the amount of BGN 2 781 thousand. This amount represents a payment of BGN 0.10 per
share. In 2023, the Company has paid out a dividend at the amount of BGN 3 992
thousand.
At the General Meeting of the Shareholders, which took place on 14 June 2022, a decision
has been taken to distribute a dividend at the amount of BGN 5 500 thousand, which is
part of the profit for 2021 at the amount of BGN 1 195 thousand, and from previous years
at the amount of BGN 4 304. thousand This amount represents a payment of BGN 0.14
per share.
In 2022, the Company has paid out a dividend at the amount of BGN 5 434 thousand.

Monbat AD
Separate financial statements
31 December 2023
69
36. Related party transactions
The Company's related parties include its shareholders, subsidiaries, companies under
common control, key management and others as described below:
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 DOO Serbia Subsidiary
Start AD Bulgaria Subsidiary
Monbat Recycling Romania Srl Romania Subsidiary
Monbat Plc DOO Serbia Subsidiary
Energy Battery Nigeria Ltd. Nigeria Subsidiary
Monbat New Power AD Bulgaria Subsidiary
Monbat Recycling EAD Bulgaria Subsidiary
Monbat Romania Srl Romania Subsidiary
Monbat Sped EOOD Bulgaria Subsidiary
Monbat Holding GmbH Germany Subsidiary
Monbat New Power GmbH Germany Subsidiary
EAS GmbH Germany Subsidiary
Monbat Italy Srl Italy Subsidiary
Piombifera Italiana Srl Italy Subsidiary
STC Srl Italy Subsidiary
Monbat Immobilien GmbH Austria Subsidiary
ARTMonbat AD Bulgaria Subsidiary
Monbat SA Proprietary Ltd South Africa 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 Dochev Danev Bulgaria Member of the BoD of
Monbat AD
Viktor Stanimirov Spiriev Bulgaria Member of the BoD of
Monbat AD
Petar Hristov Petrov Bulgaria Member of the BoD of
Monbat AD
Kyle Anderson USA 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 Company under common
control, shareholder

Monbat AD
Separate financial statements
31 December 2023
70
Related party Country Type of relation
Prista Holdco Cooperatief U.A. Netherlands Other related parties and
shareholder
Holdco Investment EOOD Bulgaria Sole shareholder in Prista
Holdco Cooperatief U.A.
Prista Invest 2016 AD Bulgaria Sole owner of Parent
Company
Alliance Energy Companies AD Bulgaria Company under common
control
Torlashka Sreshta EOOD Bulgaria Controlled by person
exercising joint control
over the Parent Company
Monbat Eco Projects OOD Bulgaria Controlled by person
exercising joint control
over the Parent Company
Black Star International AD Bulgaria Company under common
control
Sales to and purchases from related parties are made at negotiated prices. The
outstanding balances at the year end are unsecured, interest free (excluding loans) and
are settled in cash. No guarantees are given or received for amounts due from or to related
parties, except as described in note 37.1.4. An impairment review is carried out each
financial year based on an analysis of the related party's financial position and the market
in which it operates.
36.1. Transactions with parent company
2023 2022
BGN ‘000 BGN ‘000
Prista Oil Holding EAD
- sale of services 8 9
- sale of finished goods - 186
- purchase of materials 35 20
- purchase of services 21 24
- interest accrued 1 283 739
- dividend paid 1 711 2 350
- dividend refunded 280 -
36.2. Transactions with subsidiaries
2023 2022
BGN ‘000 BGN ‘000
Start AD
- sale of finished goods 4 652 4 751
- sale of services and other 176 47
- purchase of materials 4 279 7 389
- purchase of goods 62 626 76 066
- purchase of services 137 10
- purchase of non-current assets 90 37
- other purchases - 1

Monbat AD
Separate financial statements
31 December 2023
71
In 2023, sales of materials to Start AD for BGN 39 990 thousand (2022: BGN 49 582
thousand) and re-invoiced services for BGN 113 thousand (2022: BGN 188 thousand) are
recorded net of the carrying amount of materials sold, and net of reported costs of
materials and services. The gain from the transactions at the amount of BGN 176 thousand
(2022: BGN 47 thousand) is included under "Sale of services".
2023 2022
BGN ‘000 BGN ‘000
Monbat Plc DOO
- purchase of materials 50 882 51 264
- purchase of services - 12
Monbat SA Proprietary Limited
- sale of goods 11 353
- sale of finished product 203 1 604
- sale of services 8 27
- interest accrued 49 39
- purchases of goods 151 -
YU Monbat DOO
- sale of finished product 4 541 2 682
- sale of goods 328 667
Monbat Recycling Romania Srl
- purchase of materials 46 481 50 430
- purchase of services 109 107
Monbat Recycling EAD
- rendering of services 32 496
- sale of materials - 1 710
- sale of other (lead-containing semi-finished/technological
waste)
23 511 23 397
- purchase of materials 81 509 76 305
- purchase of services 181 173
- purchase of other 124 117
In 2023, sales to third parties of materials, purchased from Monbat Recycling EAD, at the
amount of BGN 12 633 thousand (2022: BGN 0) are presented net from the carrying
amount of materials sold.
2023 2022
BGN ‘000 BGN ‘000
Monbat Romania Srl
- sale of finished product 1 570 1 929
- sale of goods 146 286
Monbat Holding GmbH
- interest accrued - 27
- repaid loan - 1 878

Monbat AD
Separate financial statements
31 December 2023
72
2023 2022
BGN ‘000 BGN ‘000
Monbat Sped EOOD
- repaid loan, incl. interest 218 124
- interest accrued 16 18
- purchase of services 5 948 2 266
- purchase of materials 14 11
- other purchases 3 1
- rendering of services 10 25
- sale of materials 1 1
- sale of goods 4 6
ARTMonbat AD
- loan granted 1 661 1 184
- interest accrued 284 169
- purchase of materials 3 28
- purchase of services 3 2
Monbat Holding Tunisia BV
- repaid loan - 20
- interest accrued - 1
Energy Battery Nigeria Ltd
- rendering of services - 29
- sale of finished goods - 1 324
Monbat Immobilien GmbH
- loan granted 438 292
- interest accrued 30 9
Monbat NBP EAD
- loan granted - 150
- repaid loan 940 -
- interest accrued 106 148
Societe Nouvelle des Accumulateurs Nour
- purchase of materials 1 690 444
- sale of materials 634 496
- sale of finished goods 19 233
- sale of services 20 90
Societe Nour Distribution
- sale of materials 306 120
- sale of finished goods 106 282
- sale of services - 16

Monbat AD
Separate financial statements
31 December 2023
73
36.3 Transactions with related parties under common control and other
shareholders
2023 2022
BGN ‘000 BGN ‘000
Prista Invest 2016 AD
- loan granted - 1 580
- interest accrued 185 89
Aliance Energy Companies AD
- loan granted - 700
- interest accrued 55 1
Torlashka Sreshta EOOD
- interest accrued 10 6
Monbat Trading OOD
- purchase of goods & services 3 999 3 456
- dividend distribution 286 388
- sales of services 49 48
- advance provided 50 703
- repaid loan 587 594
- interest accrued 134 125
- interest paid 133 126
36.4 Transactions with key management personnel
The key management personnel includes the Board of Directors of the Company and the
procurators. Key management personnel remuneration includes the following expenses:
2023 2022
BGN ‘000 BGN ‘000
Short-term employee benefits:
Salaries including bonuses 1 873 1 809
Social security expenses 21 21
Company car allowance 31 33
Total remuneration 1 925 1 863
37. Related party balances at year-end
37.1. Current receivables from related parties
Note 2023 2022
BGN ‘000 BGN ‘000
Receivables from subsidiaries 37.1.1 46 697 55 353
Receivables from the Parent Company 37.1.2 23 879 23 126
Receivables from persons exercising joint
control over the parent company
37.1.3
6 240 5 911
Receivables from other related parties 37.1.4 10 526 8 994
Receivables from related parties 87 342 93 384

Monbat AD
Separate financial statements
31 December 2023
74
37.1.1 Current receivables from subsidiaries
2023 2022
BGN ‘000 BGN ‘000
Receivables from subsidiaries:
- Monbat Recycling EAD – trade receivables 15 637 11 624
- Monbat Recycling EAD – receivables from cession
contracts 19 030 19 615
- Monbat Recycling EAD – dividend receivables 114 8 455
- Monbat Sped EOOD – funds provided 286 486
- Monbat Sped EOOD - interest 7 10
- ARTMonbat AD – trade receivables 3 1
- ARTMonbat AD – loan granted 6 464 4 921
- ARTMonbat AD – interest 694 410
- MONBAT NBP EAD – funds provided 1 760 2 700
- MONBAT NBP EAD – interest 399 293
- MONBAT DOO PLC – interest 356 356
- YU Monbat PLC – trade receivables - 755
- Monbat Romania Srl – trade receivables 81 397
- Monbat Holding GmbH – interest - 10
- Piombifera Italiana Srl – trade receivables 1 1
- Monbat SA Proprietary Limited – trade receivables - 856
- Monbat SA Proprietary Limited – funds provided - 978
- Monbat SA Proprietary Limited – interest - 78
- Energy Battery Nigeria Ltd. – trade receivables - 2 702
- Societe Nouvelle des Accumulateurs Nour – trade
receivables 903 338
- Societe Nour Distribution – trade receivables 661 367
- STC Srl – trade receivables 3 -
- STC Srl – funds provided 293 -
- STC Srl – interest 5 -
Total current receivables from subsidiaries 46 697 55 353
As of 31.12.2023, trade and other receivables from Monbat Holding GmbH – BGN 10
thousand, Monbat SA Proprietary Limited – BGN 536 thousand and Energy Battery Nigeria
Ltd. – BGN 143 thousand, net of impairments, are presented on the line "Non-current
assets included in disposal groups, held for sale" in the separate statement of financial
position (note 7).
37.1.2 Current receivables from the Parent Company
2023 2022
BGN ‘000 BGN ‘000
- Prista Oil Holding EAD – deposit 19 751 20 030
- Prista Oil Holding EAD – interest 4 125 2 841
- Prista Oil Holding – trade receivables 3 255
Current receivables from the Parent Company 23 879 23 126

Monbat AD
Separate financial statements
31 December 2023
75
37.1.3 Current receivables from persons exercising joint control over the Parent
Company
2023 2022
BGN ‘000 BGN ‘000
- Plamen Bobokov – funds granted 1 830 1 830
- Plamen Bobokov – interest 382 264
- Atanas Bobokov – funds granted 3 269 3 269
- Atanas Bobokov – interest 759 548
Current receivables from persons exercising joint
control over the Parent Company 6 240 5 911
37.1.4 Current receivables from related parties under common control and
other shareholders
2023 2022
BGN ‘000 BGN ‘000
Receivables from other related parties
- Monbat Trading OOD – trade receivables 760 707
- Monbat Trading OOD – funds provided 2 689 3 276
- Monbat Trading OOD - interest 10 10
- Monbat Eco Projects OOD – funds provided 222 222
- Monbat Eco Projects OOD – interest 70 56
- Torlashka sreshta EOOD – funds provided 160 160
- Torlashka sreshta EOOD – interest 32 22
- Torlashka sreshta EOOD – trade receivables 8 8
- Prista Invest 2016 AD – funds provided 3 695 3 695
- Prista Invest 2016 AD – interest 281 96
- Prista Holdco Cooperative U.A. – funds provided 13 -
- Prista Holdco Cooperative U.A. – interest - -
- Black Star International AD – funds provided 978 -
- Black Star International AD – interest 59 -
- Alliance Energy Companies AD – funds provided 700 700
- Alliance Energy Companies AD – interest 56 1
- Holdco Investment EOOD – funds provided 767 40
- Holdco Investment EOOD – interest 26 1
Current receivables from other related parties 10 526 8 994
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
Deposited amount: BGN 17 594 thousand
Credit term: 31.05.2025, with anex dated 01.02.2019, the liability is to be paid on
demand by Monbat AD.
Interest: 6% annual interest rate
Balance on the principal as of 31.12.2023: BGN 11 766 thousand
As of 01.02.2019, the annual interest rate is 6M EURIBOR plus a surcharge of 3.5%.

Monbat AD
Separate financial statements
31 December 2023
76
• Contracts dated 2014
Deposits granted to Prista Oil Holding EAD
Deposited amount: BGN 2 900 thousand
Credit term: 31.05.2025, with anex dated 01.02.2019, the liability is to be paid on
demand by Monbat AD.
Interest: 6% annual interest rate
Balance on the principal as of 31.12.2023: BGN 2 900 thousand
As of 01.02.2019, the annual interest rate is 6M EURIBOR plus a surcharge of 3.5%.
• Contracts dated 2017
Deposits granted to Prista Oil Holding EAD
Deposited amount: BGN 5 085 thousand
Credit term: 31.05.2025, with anex dated 01.02.2019, the liability is to be paid on
demand by Monbat AD.
Interest: 6% annual interest rate
Balance on the principal as of 31.12.2023: BGN 5 085 thousand
As of 01.02.2019, the annual interest rate is 6M EURIBOR plus a surcharge of 3.5%.
The recoverability of the receivables from the parent company Prista Oil Holding EAD at
the amount of BGN 23 879 thousand 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
comparable to net exposition of the receivables of the Company from Prista Oil Holding
EAD, Prista Invest 2016 AD, Atanas Bobokov, Plamen Bobokov, Aliance Energy Company
AD and Black Star International AD.
2. Monbat Eco Projects
• Contracts dated 2016
Utilized principal: BGN 222 thousand
Credit term: 31.12.2023, extended to 31.12.2024 with an anex dated March 2024
Interest: 4% annual interest rate
Balance on the principal as of 31.12.2023: BGN 222 thousand
Repayment: no repayment plan
As of 01.02.2019, the annual interest rate is 6M EURIBOR plus a surcharge of 3.5%.
3. Monbat Sped EOOD
• Contracts dated 2019
Utilized principal: BGN 390 thousand
Credit term: 31.12.2023, extended to 31.12.2024 with an anex dated March 2024
Interest: 3.5% annual interest rate
Balance on the principal as of 31.12.2023: BGN 286 thousand
Repayment: no repayment plan
As of 01.02.2019, the annual interest rate is 6M EURIBOR plus a surcharge of 3.5%.

Monbat AD
Separate financial statements
31 December 2023
77
4. ARTMonbat AD
• Contracts dated 2019
Utilized principal: BGN 2 869 thousand
Credit term: 26.04.2026 with the possibility of early repayment at the request of
Monbat AD
Interest: 3.5% annual interest rate
Balance on the principal as of 31.12.2023: BGN 2 869 thousand
• Contracts dated 2021
Utilized principal: BGN 670 thousand
Credit term: 26.04.2026 with the possibility of early repayment at the request of
Monbat AD
Interest: 3.5% annual interest rate
Balance on the principal as of 31.12.2023: BGN 670 thousand
• Contracts dated 2022
Utilized principal: BGN 1 382 thousand
Credit term: 26.04.2026 with the possibility of early repayment at the request of
Monbat AD
Interest: 3.5% annual interest rate
Balance on the principal as of 31.12.2023: BGN 1 184 thousand
• Annex dated 2023
Utilized principal: BGN 1 742 thousand
Credit term: 26.04.2026 with the possibility of early repayment at the request of
Monbat AD
Interest: 3.5% annual interest rate
Balance on the principal as of 31.12.2023: BGN 1 742 thousand
With annex dated 01.09.2023, the interest rate was changed to 6.0%.
5. Monbat Trading OOD
• Contracts dated 2019
Utilized principal: BGN 3 000 thousand
Credit term: on demand, not later than 01.12.2024
With annex dated March 2024, the term was extended to 31.12.2024.
Interest: 3.5% annual interest rate
Balance on the principal as of 31.12.2023: BGN 1 505 thousand
With annex dated 01.01.2023, the interest rate was changed from 3.5% to 4.5%.
• Contracts dated 2020
Utilized principal: BGN 1 082 thousand
Credit term: on demand, not later than 01.12.2024
With annex dated March 2024, the deadline was extended to 31.12.2024
Interest: 3.5% annual interest rate
Balance on the principal as of 31.12.2023: BGN 1 082 thousand
With annex dated 01.01.2023, the interest rate was changed from 3.5% to 4.5%.

Monbat AD
Separate financial statements
31 December 2023
78
6. Torlashka sreshta EOOD
• Contracts dated 2019
Utilized principal: BGN 160 thousand
Term of the loans: 31.12.2023, extended to 31.12.2024 with annex dated March
2024.
Interest:3.5 % annual interest rate
Balance on the principal as of 31.12.2023: BGN 160 thousand
Repayment: no repayment plan
As of 01.01.2023, the annual interest rate is 6M EURIBOR plus a surcharge of 3.5%.
7. Alliance Energy Companies AD
• Contracts dated 2022
Utilized principal: BGN 700 thousand
Term of the loans: 31.12.2023, extended to 31.12.2024 with annex dated March
2024.
Interest: 4.0% annual interest rate
Balance on the principal as of 31.12.2023: BGN 700 thousand
With annex dated 11.01.2023, the interest rate was changed from 4% to 8%.
8. Holdco Investment EOOD
• Contracts dated 2022
Utilized principal: BGN 767 thousand.
Term of the loans: 31.12.2023, with an annex from March 2024, the term has been
extended to 31.12.2024.
Interest: 6M EURIBOR plus 3.5% surcharge
Principal balance as of 31.12.2023: BGN 767 thousand.
Repayment: no approved repayment plan
9. Atanas Bobokov
• Contracts dated 2018, 2019 and annexes
Utilized principal: BGN 4 136 thousand
Term of the loans: 31.12.2023, extended to 31.12.2024 with annex dated March
2024.
Interest: 3.5% annual interest rate
Balance on the principal as of 31.12.2023: BGN 3 219 thousand
As of 01.01.2023, the annual interest rate is 6M EURIBOR plus a surcharge of 3.5%.
• Contract dated 2020
Utilized principal: BGN 50 thousand
Term of the loan: 31.12.2023, extended to 31.12.2024 with annex dated March
2024.
Interest: 3.5% annual interest rate
Balance on the principal as of 31.12.2022: BGN 50 thousand
Repayment: no repayment plan
As of 01.01.2023, the annual interest rate is 6M EURIBOR plus a surcharge of 3.5%.

Monbat AD
Separate financial statements
31 December 2023
79
10. Plamen Bobokov
• Contracts dated 2018, 2019 and annexes
Utilized principal: BGN 2 080 thousand
Term of the loan: 31.12.2023, extended to 31.12.2024 with annex dated March
2024.
Interest: 3.5% annual interest rate
Balance on the principal as of 31.12.2023: BGN 1 830 thousand
Repayment: no repayment plan
As of 01.01.2023, the annual interest rate is 6M EURIBOR plus a surcharge of 3.5%.
In March 2024, the loans granted to the companies under common control and the persons
exercising joint control over the parent company, maturing as of 31.12.2023, were
renewed with the signing of additional agreements with a new maturity date of
31.12.2024.
Loans to subsidiaries due on 31.12.2023 have been renegotiated with an extended
maturity until 31.12.2024.
Management has reviewed the recoverability of receivables from related parties, taking
into account the specific business development plans of the respective companies,
collateral provided and the Company's historical experience with credit losses from related
parties by incorporating forecast information.
In view of the expected development of the business activity of the subsidiary companies
Energy Battery Nigeria Ltd and Monbat SA Proprietary Limited, the Company reported in
2023 expenses for impairment of trade receivables for BGN 2 063 thousand (2022: BGN
1 000 thousand) and BGN 1 105 thousand (2022: BGN 0), included in the line "loss from
discontinued operations".
In the same order, the Company also recorded a write-down of receivables from the
subsidiary Monbat Immobilien GmbH in the amount of BGN 176 thousand (2022: BGN 318
thousand).
37.2. Current related party payables
2023 2022
BGN ‘000 BGN ‘000
- Start AD – trade payables 14 539 12 168
- Monbat Recycling Romania Srl – trade payables 14 416 19 766
- Monbat Plc DOO – trade payables 5 005 6 702
- Societe Nouvelle des Accumulateurs Nour – trade
payables
1 364 -
- Monbat Sped EOOD – trade payables 869 572
- YU Monbat DOO – trade payables 560 -
- Prista Oil Holding EAD – Trade payables 31 -
- Prista Holdco Cooperatief U.A. – loan received - 395
- Monbat New Power GmbH – other payables - 48
- ART Monbat AD – trade payables - 25
Current liabilities to subsidiaries 36 784 39 676
- Dividends to shareholders - 74
Related party liabilities 36 784 39 750

Monbat AD
Separate financial statements
31 December 2023
80
As of 31.12.2023, trade and other payables from Monbat SA Proprietary Limited of BGN
151 thousand and trade and other payables from Monbat New Power GmbH in the amount
of BGN 48 thousand are presented in the line "Non-current liabilities included in disposal
groups” in the standalone statement of financial position (note 7).
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: 31.01.2024
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 31.12.2023 at the amount of EUR 2 404 405 or BGN 4 702 607.
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: 31.07.2026
Loan amount: BGN 585 000
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 31.12.2023 at the amount of 1 026 515 BGN.
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: 05.06.2027
Loan amount: EUR 518 500
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 31.12.2023 at the amount of EUR 317 923 or BGN 621 802
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, 72624.603.190,
72624.603.191, 72624.603.193, 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 31.12.2023 in the amount of EUR 4 500 000 or BGN 8 801 235.

Monbat AD
Separate financial statements
31 December 2023
81
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 31.12.2023 at the amount of EUR 59 710 or BGN 116 782.
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 31.12.2023 at the amount of EUR 101 862 or BGN 199 225.
Monbat AD is a co-debtor under the contact for financial leasing
N0026504/H/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 31.12.2023 at the amount of EUR 200 036 or BGN 391 236.
Monbat AD is a co-debtor under financial lease agreement 85671 dated 25.10.2023 ,
between Start AD and OTP Leasing EOOD.
Maturity date: 25.10.2027
Amount of the loan: EUR 775 373
Type of loan: Financial leasing
Interest: 3M EURIBOT + fixed mark-up
Collateral: ConCost line
Balance as at 31.12.2023 at the amount of EUR 760 917 or BGN 1 488 225

Monbat AD
Separate financial statements
31 December 2023
82
Monbat AD is a co-debtor under financial lease agreement 23941384968 dated
13.10.2023, between Monbat Recycling EAD and OTP Leasing EOOD.
Maturity date: 13.10.2028
Amount of the loan: EUR 852 541 credit line
Interest: 3M EURIBOR + fixed mark-up
Collateral: Installation for the production of tin
Balance as at 31.12.2023 at the amount of EUR 827 779 or BGN 1 618 995
Monbat AD is a co-debtor under financial lease agreement 17803 dated 06.05.2023 ,
between Monbat Recycling EAD and UBB Interlease EAD
Maturity date: 06.12.2026
Loan amount: EUR 100 000
Interest: 3M EURIBOR + fixed mark-up
Equipment: RBS steam compressor
Balance as at 31.12.2023 in the amount of EUR 90 000 or BGN 176 024.
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 31 December 2019;
• Social security - until 31 December 2019
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 separate financial statements for the year ended 31 December 2023.
39. Categories of financial assets and liabilities
The carrying amounts compared to the fair values of the Company's financial assets and
liabilities carried at amortized cost can be presented in the following categories:
Note 2023 2022
Book
value
Fair value Book
value
Fair
value
BGN ‘000 BGN ‘000 BGN ‘000 BGN ‘000
Financial assets
Debt instruments carried at
amortized cost
Trade receivables 12 44 893 44 893 44 725 44 725
Short-term financial assets 11 92 92 99 99
Related party receivables 37 87 342 87 342 93 384 93 384
Cash and cash equivalents 15 7 060 7 060 2 527 2 527
Total financial assets 139 387 139 387 140 735 140 735

Monbat AD
Separate financial statements
31 December 2023
83
Note 2023 2022
Book
value
Fair value Book
value
Fair
value
BGN ‘000 BGN ‘000 BGN ‘000 BGN ‘000
Financial liabilities
Debt instruments carried at
amortized cost
Interest-bearing loans 19 96 348 96 348 83 750 83 750
Convertible bond 21 44 687 45 207 54 083 55 646
Related party payables 37 36 784 36 784 39 750 39 750
Trade payables 22 13 151 13 151 11 282 11 282
Lease liabilities 8 2 785 2 785 2 378 2 378
Other payables 24.2 202 202 5 917 5 917
Total liabilities 193 957 194 477 197 160 198 723
Fair value measurement of financial instruments
The balance sheet values of the Company's financial assets and liabilities, measured at
fair value, can be presented in the following categories:
31 December 2023 Note Level 1 Level 2 Level 3 Total
BGN ‘000 BGN ‘000 BGN ‘000 BGN ‘000
Financial assets
Shares 11 - - 50 50
Total assets - - 50 50
Financial liabilities
Fair value of convertible
option
21
- - 2 640 2 640
Total liabilities - - 2 640 2 640
31 December 2022 Note Level 1 Level 2 Level 3 Total
BGN ‘000 BGN ‘000 BGN ‘000 BGN ‘000
Financial assets
Shares 11 - - 50 50
Total assets - - 50 50
Financial liabilities
Fair value of convertible
option
21
- - 5 280 5 280
Derivatives 24.3 364 - - 364
Total liabilities 364 - 5 280 5 644
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.

Monbat AD
Separate financial statements
31 December 2023
84
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 3 of the fair value
hierarchy.
The fair value of the exchange-traded convertible bond 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.
The fair value of the conversion option falls at level 3 of the fair value hierarchy (note 21).
There is no change in the fair value measurement model of the conversion option in 2022
and 2023 (note 21). In 2023, the Company reports income from the change in the fair
value of the option in the amount of BGN 2 640 thousand under the line "Income from
financial instruments" (2022: BGN 587 thousand).
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 at 2023
and 2022
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 31 December 2023.
1 January
2023
Cash
inflows
Cash
Outflows
Accruals using
the effective
interest method Others
31
December
2023
BGN ’000 BGN ’000 BGN ’000 BGN ’000 BGN ’000 BGN ’000
Loans and borrowings 83 750 214 422 (203 676) - 1 852 96 348
Lease liabilities (note 8) 2 378 - (937) 103 1 241 2 785
Convertible bond 54 083 - (10 959) 2 112 (549) 44 687
Conversion option 5 280 - - - (2 640) 2 640
Derivatives 364 - - - (364) -
Total liabilities from
financing acitivity 145 855 214 422 (215 572) 2 215 (460) 146 460

Monbat AD
Separate financial statements
31 December 2023
85
1 January
2022
Cash
inflows
Cash
Outflows
Accruals using
the effective
interest method Others
31
December
2023
BGN ’000 BGN ’000 BGN ’000 BGN ’000 BGN ’000 BGN ’000
Loans and borrowings 81 794 171 826 (170 962) 83 1 009 83 750
Lease liabilities (note 8) 1 021 - (901) 92 2 166 2 378
Convertible bond 51 458 - - 3 529 (904) 54 083
Conversion option 5 867 - - - (587) 5 280
Derivatives - - - - 364 364
Total liabilities from
financing acitivity 140 140 171 826 (171 863) 3 704 2 048 145 855
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 credit risk and liquidity risk.
The Company's risk management is coordinated at its headquarters, in close co-operation
with the Board of Directors.
40.1. Market risk analysis
Most of the Company’s transactions are carried out in Bulgarian leva (BGN) and Euro
(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:
Short-term exposure
USD
BGN ‘ 000
31 December 2023
Assets 4 709
Liabilities (226)
Total exposure 4 483
31 December 2022
Assets 5 237
Liabilities -
Total exposure 5 237
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.

Monbat AD
Separate financial statements
31 December 2023
86
It assumes a +/- 5% change of the BGN/USD exchange rate as of 31 December 2023
(2022: 5 %). 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 5% (2022: 5 %) then this would have
had the following impact:
Effect on financial
performance for the year
USD
BGN ‘000
31 December 2023 224
31 December 2022 262
If the BGN had weakened against the USD by 5% (2022: 5%) then this would have had
the following impact:
Effect on the financial
performance for the year
USD
BGN ‘000
31 December 2023 (224)
31 December 2022 (262)
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.
40.2 Foreign currency risk
The Company's policy is to minimize interest rate cash flow risk exposures on long-term
financing. As of 31 December 2023, 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 2023 2022
BGN ‘000 BGN ‘000
Financial assets 113 439 120 755
Financial liabilities (53 755) (62 120)
Net exposure 59 684 58 635
Floating rate instruments 2023 2022
BGN ‘000 BGN ‘000
Financial assets 25 998 20 030
Financial liabilities (142 842) (135 041)
Net exposure (116 844) (115 011)

Monbat AD
Separate financial statements
31 December 2023
87
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
2023 + 1% (1 168)
2022 - 1% 1 168
2022 + 1% (1 150)
2022 - 1% 1 150
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.
40.3 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
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 2023, 80% of the Company's trade receivables, analyzed
by the simplified matrix, are covered by letters of credit and other forms of credit insurance
(2022: 78%).

Monbat AD
Separate financial statements
31 December 2023
88
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 2023, 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 31.12.2023 (BGN ‘000)
Days overdue
< 90
days
91-180
days
181-365
days
> 365
days Total
Expected % credit loss 0.09% 1.18% 96.05% 98.15% 1.06%
Gross carrying amount of trade
receivables 34 839 2 116 76 271 37 302
Expected credit loss (ECL) (32) (25) (73) (266) (396)
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 31.12.2022 (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)
The Company has estimated provisions for loss for certain trade receivables from
customers from Russian Federation 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 BGN 2 595
thousand (2022: BGN 2 595 thousand). The accrued impairment of these receivables as
of 31.12.2023 amounts to BGN 2 595 thousand (2022: BGN 2 335 thousand).
In 2023, the Company has not calculated expected credit loss (ECL) for receivables from
Ukrainian companies at the amount of BGN 7 987 thousand (net of impairment for the
amount of 519 BGN thousand). Due to the war in Ukraine, that began on 24 February
2024, the Company is not able to estimate the ECLs in line with IFRS 9 and has not tested
theses receivables for impairment.
The Company has BGN 2 080 thousand of overdue trade receivables from a Russian
counterparty, which are insured with the Bulgarian Export Insurance Agency (BAEZ) EAD
and according to an agreement of 22 June 2023 concluded with the insurer, these
receivables will be paid after the conclusion of a court case concerning the terms and
performance of delivery led by Monbat AD against the Russian counterparty. According to
the legal counsel of the Company, the claim in the commercial case will be granted in full.
Financial instruments and cash deposits
The credit risk of balances with banks and financial institutions is managed by the financial
department of the Company 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 Company's

Monbat AD
Separate financial statements
31 December 2023
89
Board of Directors and may be updated throughout the year, subject to approval by the
Company'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.
40.4 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 daily.
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.
As of 31 December 2023, the Company's liabilities have contractual maturities (including
interest payments where applicable) as summarized below:
Current Current Non-current
31 December 2023 up to 6
months
6 to 12
months
1 to 5 years
BGN ‘000 BGN ‘000 BGN ‘000
Bank loans 46 892 51 469 30 813
Convertible bonds 17 972 935 28 341
Fair value of conversion option - 2 640 -
Related party payables 36 784 - -
Trade payables 13 151 - -
Total 114 799 55 044 59 154
In prior reporting periods the Company's liabilities have contractual maturities (including
interest payments where applicable) as summarized below:
Current Current Non-current
31 December 2022 up to 6
months
6 to 12
months
1 to 5 years
BGN ‘000 BGN ‘000 BGN ‘000
Bank loans 22 168 49 426 14 534
Convertible bonds 11 818 - 42 265
Fair value of conversion option of bonds - - 5 280

Monbat AD
Separate financial statements
31 December 2023
90
Related party payables 39 750 - -
Trade payables 11 282 - -
Derivatives 364 - -
Total 85 382 49 426 62 079
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
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.
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.
Interest-bearing debt includes bank loans, loans from financial institutions and the
convertible bond.
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:
2023 2022
BGN ‘000 BGN ‘000
Equity 157 451 158 572
Interest-bearing debt 141 035 137 833
- Cash and cash equivalents (7 060) (2 527)
Net debt 133 975 135 306
Net debt to equity 0.85 0.85
The ratio in 2023 remains flat, compared to the prior period, due to the decrease in the
equity following the distribution of the dividends during the year, as well as due to the
increase in the cash and cash equivalents. The interest-bearing debt has not undergone
significant changes.

Monbat AD
Separate financial statements
31 December 2023
91
42. Events after the reporting period
No adjusting or significant non-adjusting events occurred between the date of the
individual financial statements and the date of approval for publication, except for the
following non-adjusting events:
- On 22 January 2024, a General Meeting of the bondholders of the convertible bond
issue was held, at which a decision was made to postpone the payment of the
second installment of the principal in the amount of EUR 8 404 500 by sixty
calendar days starting from 20 January 2024, in order to draw down funds under
a contractual loan with a financial institution, through which the payment will be
partially financed. As at the date of approval of the individual financial statements,
payment to the bondholders has not yet been made, as the procedure for utilizing
funds from the financial institution has not been completed.
43. Authorization of the separate financial statements
The separate financial statements for the year ended 31 December 2023 (including
comparatives) were approved by the Board of Directors on 29 March 2024.

i
ANNUAL SEPARATE ACTIVITY REPORT OF
MONBAT AD, SOFIA
FOR THE FINANCIAL 2023
THIS ACTIVITY REPORT WAS PREPARED IN ACCORDANCE WITH THE
PROVISIONS OF ARTICLE. 39 OF THE ACCOUNTANCY ACT, ARTICLE 100N,
PARAGRAPH 7 OF THE PUBLIC OFFERING OF SECURITIES ACT AND ORDINANCE
№ 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 Separate Activity Report may contain statements which reflect the
current vision of the Company’s Board of Directors of MONBAT AD,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 Company 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 to announce 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 Separate 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 Separate Activity 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 completeness of this information or the presence of complete uniformity in
the information from all these sources. In this regard, MONBAT AD takes responsibility
only for the accurate reproduction of extracts from relevant sources of information.

2
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 it has relied on the accuracy of this information without
conducting an independent review.
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 POSA and Appendix № 2
to the artical10, item 1 from Ordinance 2/ 09.11.2021 of FSC, prepared this Annual
Separate Activity Report (“the Report”).
The Report presents comments and analysis of the separate 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 2023 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 POSA 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.
In 2023 MONBAT AD generated revenue from contracts with customers on a stand-
alone basis of BGN 317 137 thousand, which is a decrease of 3.0% compared to the
generated in 2022 revenue from contracts with customers of BGN 327 007 thousand.
Profit before tax of MONBAT AD for 2023 is BGN 4 426 thousand, which is a
decrease of 23.8% compared to the individual profit before tax for 2022 (BGN 5 806
thousand).
The net profit of MONBAT AD on an individual basis for 2023 amounts to BGN 2
908 thousand and shows an increase of 139% compared to the net profit of the Company
on an individual basis for 2022 (BGN 1 219 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 office and business address at 32A
Cherni vrah Blvd., 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

3
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 2023 and during the comparative period 2022, there were no changes in the
amount of the capital of MONBAT AD.
As of 31.12.2023 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.
As of 31.12.2023 the capital structure of MONBAT AD is the following:
Тable № 1
Name of the shareholder Number of
shares
Percentage
of the capital
PRISTA OIL HOLDING EAD, Sofia 16 666 371 42.73%
PRISTA HOLDCO COOPERATIEF U.A. 8 103 758 20.78%
MONBAT TRADING OOD, Sofia 2 785 650 7.14%
UPF Doverie 2 582 864 6.62%
MUPF Allianz 2 105 403 5.40%
Other individuals and legal entities 6 755 954 17.33%
Own shares (33 545) (0.08%)
Т he Board of Directors of MONBAT AD is the following:
Chavdar Danev – Chairman of the Board of Directors
Petar Hristov Petrov – Member of the Board of Directors
Evelina Slavcheva – 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
Florian Huth – Member of the Board of Directors until 12.07.2023
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:

4
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.
Concerning usage, 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.

5
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 power
source, 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.
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.

6
Leisure batteries
The Monbat Leisure & Hobby range is characterized with special design, reliable in
demanding charge/discharge cycling conditions, typical for recreational and leisure
equipment.
Perfect for seasonal use. Ideal for motorboats, canal boats, yachts, motorhomes, and
caravans.
2. Major raw materials
The major raw materials essential to the Company’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 mainly from its subsidiaries,
used in the production for 2022, represents 98.0% of total lead consumption, and the
share of the recycled polypropylene (regranulate) produced in the facilities of the
Company’s subsidiaries is 99.80%.
The share of own recycled lead, that MONBAT AD buys mainly from its subsidiaries,
used in the production for 2023, represents 93.4% of total lead consumption, and the
share of the recycled polyropylene (regranulate) produced in the facilities of the
Company’s subsidiaries is nearly 90%.
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.

7
The movement of the lead price in 2023 is shown in the following diagram:
* Average lead price for the period 01.01.2023 – 31.12.2023 is – 2 137.18 USD/MT
During 2023 lead represented approximately 65% of 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 AD 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
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.
Fluctuations in the prices of electricity (excluding the effect of government subsidy,
if applicable) and natural gas can have a significant impact on the formation of the cost
price. In 2023, their weight in the cost of the finished product is: 3.6% of the cost of the
final product is determined by the cost of electricity and 1.3% - by the cost of natural gas
MARKETS AND SALES
As a result of its marketing and distribution strategy MONBAT AD has good market
diversification; with sales in more than 70 countries. The major markets include France,
Germany, Romania and Spain. With its well-developed distributor’s network MONBAT AD
generates sales in all 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 insured by BAEZ AD (the Bulgarian Export Insurance Agency) or
COFACE.
A direct competitor on the Bulgarian market is Elhim-Iskra AD. As of 31.12.2023
MONBAT AD owns 97.80% of the share capital of the third largest producer in the lead-
acid batteries business in Bulgaria – START AD, Dobrich.

8
In 2023 MONBAT AD reported revenues from contracts with customers on a stand-
alone basis of BGN 317 137 thousand, which represents a decrease by 3.0% compared to
sales revenues generated in 2022 of BGN 327 007 thousand.
Sales revenues on the domestic market in 2023 are BGN 40 283 thousand and
represent 12.7% of total sales. Sales revenues realized 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. Export sales, including intra-community
supplies, amount to BGN 276 854 thousand and represent 87.3% of the Company's net
sales revenues.
MONBAT AD is geographically diversified with a market presence in more than 70
countries. Regarding the ongoing military conflict between Ukraine and Russia, it should
be borne in mind that during 2023, the Company has not made sales to Russian customers,
while sales to Ukrainian counterparties represent 4.0% of the total revenues for 2023
(2022: Russia - 2.2%, Ukraine – 2.1%).
Тable № 2
2023 2022
Country Export % Export %
('000 EUR) ('000 EUR)
FRANCE 15 697 11.09 11 220 7.81
GERMANY 15 268 10.79 15 583 10.85
ROMANIA 9 549 6.75 7 844 5.46
SPAIN 9 252 6.54 9 763 6.80
ITALY 8 677 6.13 6 059 4.22
POLAND 7 929 5.60 8 547 5.95
GREAT BRITAIN 7 475 5.28 6 299 4.39
NETHERLANDS 7 003 4.95 7 405 5.16
UKRAINE 6 564 4.64 3 592 2.50
SWEDEN 5 040 3.56 3 970 2.76
SERBIA 3 704 2.62 3 101 2.16
ALGERIA 3 469 2.45 2 363 1.65
HUNGARY 2 804 1.98 2 608 1.82
IRELAND 2 259 1.60 2 283 1.59
SAUDI ARABIA 2 147 1.52 7 854 5.47
PORTUGAL 2 133 1.51 1 564 1.09
FINLAND 2 114 1.49 2 201 1.53
IRAQ 2 053 1.45 243 0.17
CZECH REPUBLIC 1 861 1.31 1 429 0.99
OTHER 26 555 18.76 39 701 27.64
TOTAL 141 553 100 143 629 100
In 2023 the major market of MONBAT AD was FRANCE, where the Company
generated revenues of EUR 15 697 thousand, which represents 11.09% from export sales
on a stand-alone basis.

9
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.
IATF 16949:2016
This technical specification certificate 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 AD complies with the internationally recognized
assessment specification for occupational health and safety management systems.
OPERATING RESULTS
In 2023 the Company reported increased demand for automotive batteries in
Western European markets, where historically record sales of this product type were
achieved. In 2022, demand for these products was significantly depressed by sharp
inflationary movements in the region and the associated change in consumer behavior.
In addition, there was a significant decline in sales of the larger and more profitable
semi-cyclical batteries, representing mainly purchased goods, due to the normalization of
the delivery period for US manufacturers of this type of batteries, which was drastically
extended in 2022 due to logistical challenges during the period, and a reorientation of the
market back towards US products respectively.
The Company also reported a decline in sales of stationary (telecom) batteries due
to the substantial volumes sold to leading telecom operators and system integrators in
Russia in the first two months of 2022, i.e., immediately prior to the beginning of the war
in Ukraine.

10
As a result of the above, MONBAT AD reports an increase in battery sales volumes
in 2023 (Table 13) and a decrease in normalized EBITDA (before impairments) on an
individual basis from continuing operations.
Profit before tax of MONBAT on an individual basis from continuing operations for
2023 is BGN 4 426 thousand, which represents a decrease of 23.8% compared to the
Company’s profit before tax for 2022 (BGN 5 806 thousand).
Net profit of MONBAT AD for 2023 is BGN 2 908 thousand - an increase of 138.56%
compared to the Company's net profit for 2022 of BGN 1 219 thousand.
Table № 3
FINANCIAL INDICATORS 2023 2022 2021
Normalized EBITDA (before impairment) from
continuing operations 14 277 15 694 21 166
EBIT from continuing operations 7 240 8 601 -6 534
Revenue from contracts with customers 317 137 327 007 351 010
*Amounts presented in thousand BGN.
Table № 4
(BGN '000)
SHAREHOLDERS' EQUITY 2023 % 2022 % 2021
Share capital 38 966 -0.02% 38 973 -0.07% 39 000
Premium reserve 28 476 -0.08% 28 498 -0.39% 28 611
General reserves 63 866 0.00% 63 866 0.00% 63 866
Retained earnings 26 143 -4.01% 27 235 -13.58% 31 516
TOTAL SHAREHOLDERS'
EQUITY 157 451 -0.71% 158 572 -2.71% 162 993
Re ve n ue f ro m m ai n act i vi ty by c ate g or y
Table № 5
(BGN '000)
REVENUES 2023 % 2022
Revenue from sales of products 238 680 1.35% 235 499
Revenue from the sale of goods 72 295 -15.35% 85 409
Revenue from sales of materials 3 119 0.35% 3 108
Revenue from the provision of services 2 611 -12.62% 2 988
Other sales revenue 432 >100% 3
TOTAL REVENUE FROM CONTRACTS
WITH CUSTOMERS 317 137 -3,02% 327 007

11
Ope r ati n g ex p en d i tu re s by c ate g or y
Table № 6
(BGN '000)
EXPENSES 2023 % 2022
Materials 196 586 -4.09% 204 965
External services 22 161 -2.97% 22 840
Staff costs 18 668 8.34% 17 231
Depreciation and impairment of non - financial
assets 6 987 4.58% 6 681
Changes in stock of finished goods and work in
progress -585 -89.34% -5 487
Cost of goods sold and other current assets 64 642 -16.99% 77 870
Other expenses 2 347 -2.59% 2 409
TOTAL EXPENSES 310 806 -4.81% 326 509
Mai n s u pp l i er s of m ate r i al s
Table № 7
SUPPLIER 2023 2022 2021
Monbat Recycling EAD 34.36% 33.67% 34.53%
MONBAT PLC D.O.O 21.19% 22.62% 17.87%
MONBAT RECYCLING S.R.L 19.33% 22.25% 20.35%
EL BAT AD <10% <10% <10%
AKUMSAN PLASTIK URUNLER SAN VE TIC A.S. <10% <10% <10%
MONPLAST ООD <10% <10% <10%
The main supplier of MONBAT AD for materials necessary for the production of
batteries is Monbat Recycling EAD, a 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 210 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 KEY INDICATORS 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
MIGHT BE REFERENCE TO THE AMOUNT OF EXPENDITURE INLCLUDED IN
THE STAND-ALONE FINANCIAL STATEMENTS

12
1. FINANCIAL RATIOS
LIQUIDITY
Table № 8
LIQUIDITY RATIOS 31.12.2023 31.12.2022 31.12.2021
Current liquidity ratio 1.29/1 1.52/1 1.56/1
Quick liquidity ratio 1.09/1 1.28/1 1.28/1
Cash liquidity ratio 0.04/1 0.02/1 0.04/1
Immediate liquidity ratio 0.04/1 0.02/1 0.04/1
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 2023 the current ratio is 1.29 and decreases in comparison with the ratio of
1.52 for 2022. The registered decrease in the value of this ratio is due to a decrease in
the amount of current assets of the company by 2.3% while the value of current liabilities
increase by 15.1%.

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
most efficient manner.
The Company's 2023 Quick Liquidity Ratio is 1.09, down from 2022's value of 1.28.
In 2023, compared to 2022, current assets decreased by 2.3%, inventories decreased by
5.5%, while current liabilities increased by 15.1%.
CASH LIQUIDITY RATIO
The cash liquidity ratio is calculated as the ratio between cash and short-term
liabilities and indicates the company’s ability to meet its short -term liabilities with its
available cash. The company's cash liquidity ratio for 2023 is 0.04. Compared to 2022, the
cash and cash equivalents of the Company at 31.12.2023 increased by 179%, with an
increase in current liabilities by 15.1%.
IMMEDIATE LIQUIDITY RATIO
The value of the immediate liquidity ratio of MONBAT AD for 2023 is 0.04 and has
increased compared to its value for 2022, which was 0.02. Cash and cash equivalents
increase by 179%, while current liabilities increase by 15.1%, and financial assets remain
at prior year levels.
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 assurance 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) on their attraction. When a company achieves higher profitability by using
borrowed funds in its capital structure, than the expenses for their borrowing, 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 № 9
LEVERAGE RATIOS 31.12.2023 31.12.2022 31.12.2021
Debt to equity ratio 1.30 1.32 1,16
Debt to assets ratio 0.57 0.57 0,54
Equity to debt ratio 0.77 0.76 0,86
DEBT TO EQUITY RATIO
Indicators of the proportion of capital raised through borrowings show what
proportion of total capital is borrowed. The higher the proportion of long-term debt
compared to equity, the higher the probability of default on fixed liabilities.
The value of the debt to equity ratio of MONBAT AD for 2023 is 1.30 and decreases
compared to 2022. In 2023, the value of the debt decreased by 2.2%, and the reduction
of the company's equity is 0.7%.
EQUITY TO DEBT RATIO
The equity to debt ratio shows what percentage of total liabilities is the Company's
equity.
As of 31.12.2023 the value of the equity to debt ratio of the Company is 0.77
compared to its prior year value of 0.76. During the reported financial period, the value of
the ratio increased compared to the previous financial year, which is due to a decrease in
equity by 0.7% and a decrease in the Company's liabilities by 2.2%.
DEBT TO TOTAL ASSETS RATIO
This ratio shows what part of the assets is being financed through debt.
As of 31.12.2023 the value of the Debt/Assets ratio slightly decreased compared
to 2022. The decrease is a result of a decrease in the Company's liabilities by 2.2% and a
decrease in the Company's assets by 1.5%.

15
PROFITABILITY RATIOS
Table№ 10
PROFITABILITY RATIOS 31.12.2023 31.12.2022 31.12.2021
Profitability of capital 0.0746 0.0313 0.0307
Return on equity (ROE) 0.0185 0.0077 0.0070
Return assets (ROA) 0.0080 0.0033 0.0034
RETURN ON EQUITY (ROE)
The Return on Equity ratio is calculated by taking the profit after tax from the
statement of comprehensive income as a percentage of the company's equity. This ratio
measures the return to shareholders in terms of their absolute investment.
For 2023, the value of the Return on Equity ratio is 0.0185 and shows an increase
compared to its rate of 0.0077 in 2022. The increase is due to an increase in the company's
net profit by 139% while a decrease in equity of 0.7%.
RETURN ON ASSETS (ROA)
The Return on Assets indicator shows the efficiency of use of total assets in the
company. The increase in the value of the Return on Assets indicator in 2023 compared
to 2022 is due to an increase in the Company’s net profit by 139% with a decrease in
assets by 1.5%.
PROFITABILITY OF CAPITAL
As of 31.12.2023 the profitability of capital ratio is 0.0746 and increases compared
to 2022. In 2023 compared to 2022, the net profit reported by the company increased by
139% with a decrease in the fixed capital by 0.02% compared to prior year.
KEY RATIOS
Summarized information on the financial indicators of MONBAT AD for the last two
financial years is presented in the following table:

16
Table № 11
Indicators 31.12.2023 31.12.2022
Revenue from contracts with customers 317 137 327 007
Total revenue 324 860 338 272
Operating expenses 310 806 326 509
Total expenses 320 434 332 466
Normalized Earnings Before Interest, Taxes and Depreciation
(EBITDA) from continuing operations 14 277 15 694
Operating profit from continuing operations 7 240 8 601
Net profit 2 908 1 219
Non-current assets 143 274 143 741
Current assets 219 256 224 451
Equity 157 451 158 572
Non-current liabilities 35 388 62 163
Current liabilities 169 691 147 457
Working capital 10 205 38 127
Cash and cash equivalents 7 060 2 527
Total debt 205 079 209 620
Net debt 133 975 135 306
Inventories 34 057 36 043
Short-term receivables 138 073 147 014
Expenses for materials 196 586 204 965
Expenses for personnel 18 668 17 231
Interest expenses 8 667 5 818
Capital raised/Equity 1.302 1.322
Net Debt/EBITDA on an annualized basis 9.384 8.622
EBITDA/Revenue 0.045 0.048
Operating profit/Revenue 0.023 0.026
Profitability of sales * 0.92% 0.37%
Revenue efficiency 0.986 0.983
Cost efficiency 1.014 1.017
Earnings per share from continuing operations 0.102 0.133
Earning per share 0.075 0.031
P/E * 37.46 34.34
P/BV * 0.95 1.13
P/S * 0.47 0.55
Financial leverage ratio * 0.065 0.240
ROFA * 2.03% 0.85%

17
P/E, P/BV & P/S ratios are calculated based on the average share price of MONBAT AD as
of 31.12.2023, 31.12.2022
* Profitability of sales - net profit/net sales x100;
* Financial leverage ratio – working capital/shareholders’ equity;
*ROFA (return on non-current assets) – net profit/non-current assets;
*P/S – (market capitalization/net sales)х100
*P/BV – market capitalization/shareholders' equity
*P/E – market capitalization/net profit from continuing operations
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 possibility of a change of Government, or a sudden change in its
policies, domestic political shocks and adverse changes in European and/or national
legislation, as a result of which the environment in which local businesses operate may
change negatively and investors may suffer losses.
Political instability may affect macroeconomic growth and the business environment in
Bulgaria. In this regard, if uncertainty is created in the Bulgarian economy - regarding
fiscal and/or monetary policy, the rule of law and law enforcement, the level of
corruption and bureaucratic burdens, etc. - this could lead to a decline in investment,
capital outflow from the country and more conservative behaviour on the part of
investors/customers. This in turn could lead to a slowdown in economic growth or even
a recession and a reduction in employment and disposable income, which would reduce
economic activity and worsen the creditworthiness of certain economic entities. In this
regard, it is possible that some entities may report weaker financial results than
expected. Following three unsuccessful attempts by political parties to form a cabinet,
early parliamentary elections were held on 2 April 2023. As of the date of this document,
there is a functioning Bulgarian government supported by the largest parliamentary
groups in the Bulgarian Parliament.
The impossibility to predict the duration of the new Bulgarian government, given the
constant contradictions between the political parties behind it in the National Assembly,
determines the relative uncertainty regarding the implementation of the state policy to
control inflation and the growing budget deficit. The observed political uncertainty calls
into question the possibility to carry out adequate reforms in administration, education
and health, which form the main budget expenditures. The war in Ukraine and the
government's stated willingness to support Ukraine by all means is an additional
budgetary pressure. Minimal GDP growth is expected in 2024, which will not allow for a
recovery of the national economy due to rising energy costs and supply chain problems.
In this regard, attention should be paid to actual growth - whether it will meet the
government's projections; the expected rise in exports; the government's ability to
borrow favourably in international markets; and the ongoing efforts to moderate the
recovery in domestic consumption.
The uncertainty in the government's priorities also puts at risk the possibility to
implement reforms in structurally decisive sectors in the country in order to optimise

18
the process of efficient absorption of EU funds. Attention should be paid to reforms in
the inefficient pension and social security system, the health system and education;
administrative coordination and rules for project financing, including improving the
process of allocating, coordinating and managing EU funds. A key issue facing the new
regular Bulgarian government is to find support among the parliamentary forces in the
fight against corruption, and there are applications to make a number of legal changes
in this regard, including to the Constitution of the Republic of Bulgaria.
OVERALL
MACROECONOMI
C RISK
According to the National Statistical Institute as of 29.12.2023, the overall business
climate indicator decreased by 1.8 points compared to the previous month (from 21.6%
to 19.8%) due to the unfavorable business climate in the construction, retail and service
sectors. Business climate – total
Source: NIS
In December 2023, the composite indicator "business climate in industry" maintained
approximately its November level (from 20.6% to 20.7%). Industrial entrepreneurs rate
current manufacturing activity as favourable, while their expectations for activity over
the next three months are slightly deteriorated. The uncertain economic environment
and labour shortages continue to be the most serious obstacles to business
development. As regards industrial selling prices, managers' forecasts are for a slight
increase, although the majority of them foresee their level to be maintained over the
next three months.
In December 2023, the composite indicator "business climate in construction" decreased
by 1.2 points (from 23.6% to 22.4%), due to the reserved assessments of construction
contractors about the current business situation of enterprises. At the same time,
however, their expectations for both the business situation of enterprises over the next
six months and construction activity over the next three months are improving. The
uncertain economic environment, material prices and labour shortages remain the main
constraints to activity, with a reduction in the negative impact of the first and third
factors compared to November. In terms of construction selling prices, a majority of
managers expect them to remain unchanged over the next three months.
In December 2023, the composite indicator "business climate in the services sector"
declined by 2.5 points (from 15.9% to 13.4%), due to unfavourable assessments and
expectations of managers about the business situation of enterprises. At the same time,
however, their expectations for demand for services over the next three months
improved slightly. The uncertain economic environment, competition in the industry and
labour shortages remain the main factors limiting the activity of enterprises, with their
negative impact decreasing over the last month. Compared to November, the share of

19
managers who expect selling prices in the services sector to increase over the next three
months is increasing.
According to the macroeconomic forecasts of the Euro system experts, set out in the
Economic Bulletin No. 8/2023 of the European Central Bank, average annual real GDP
growth is expected to slow down - from 3.4% in 2022 to 0.6% in 2023, then to recover
to 0.8% in 2024 and to stabilise at 1.5% in 2025 and 2026. Compared with the September
2023 forecasts, GDP growth forecasts have been revised down slightly for 2023-2024 on
the basis of the latest published data and adverse surveillance data, while they remain
unchanged for 2025. As the energy crisis recedes, governments should continue to
withdraw related support measures. This is essential to prevent inflationary pressures
from increasing in the medium term, which would require even greater monetary
tightening. Fiscal policies should be geared towards achieving greater productivity in the
euro area economy and a gradual reduction in high public debt. According to the experts'
macroeconomic forecasts, it is essential to accelerate progress towards the creation of
a capital markets union and the completion of the bank union.
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 on 14 December 2023 the Management Board of the European Central
Bank decided to keep unchanged the ECB's three key interest rates. The Management
Board is determined to ensure a timely return of inflation to the 2% target in the medium
term. On the basis of its current assessment, the Management Board considers that
interest rates are at levels that, if maintained for a sufficiently long time, would contribute
significantly to a timely return of inflation to the target level. Future decisions of the
Governing Council will ensure that the ECB's key interest rates will be set at sufficiently
restrictive levels for as long as necessary to ensure this timely return. The ECB experts'
December 2023 macroeconomic forecasts for the euro area foresee inflation declining
gradually throughout 2024 before approaching the Management Board's 2% target in
2025. Overall, the Euro system experts expect general inflation to average 5.4% in 2023,
2.7% in 2024, 2.1% in 2025 and 1.9% in 2026. Compared to the ECB experts' September
2023 macroeconomic forecasts for the euro area, this represents a downward revision
for 2023 and especially for 2024.
The restrictive monetary policy of the Management Board continues to be strongly
reflected in the overall financing conditions. Lending rates rose again in October, to 5.3%
for corporate loans and 3.9% for mortgage loans. Higher lending rates, weak loan demand
and tighter supply conditions are leading to a further weakening of credit dynamics.
*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.

20
According to preliminary data of the NSI, in January 2023 the monthly inflation is 1.1%
compared to the previous month, and the annual inflation for January 2023 compared
to January 2022 is 16.4%. The average annual inflation rate for the period February 2022-
January 2023 compared to the period February 2021-January 2022 is 15.9%.
According to preliminary data from the NSI, monthly inflation measured by the
Harmonised Index of Consumer Prices (HICP) in January 2023 was 1.0% compared to the
previous month, and annual inflation for January 2023 compared to January 2022 was
14.1%. Annual average inflation for the period February 2022 to January 2023 compared
to the period February 2021 to January 2022 is 13.5%.
In February 2023, the monthly inflation rate was 0.8% compared to the previous month
and the annual inflation rate for February 2023 compared to February 2022 was 16.0%.
Year-to-date inflation (February 2023 versus December 2022) is 2.1% and the average
annual inflation rate for March 2022 - February 2023 versus March 2021 - February 2022
is 16.4%.
According to the Harmonised Index of Consumer Prices, monthly inflation in February
2023 was 0.7% compared to the previous month and annual inflation for February 2023
compared to February 2022 was 13.7%. Year-to-date inflation (February 2023 versus
December 2022) is 1.9%, and the annual average inflation rate for March 2022-February
2023 versus March 2021-February 2022 is 14.0%.
In March 2023, the monthly inflation rate is 0.5% compared to the previous month and
the annual inflation rate for March 2023 compared to March 2022 is 14.0%. Year-to-date
inflation (March 2023 versus December 2022) is 2.6% and the average annual inflation
rate for April 2022-March 2023 versus April 2021-March 2022 is 16.5%.
According to the March 2023 HICP, monthly inflation was 0.6% from the previous month
and annual inflation for March 2023 compared to March 2022 was 12.1%. Year-to-date
inflation (March 2023 vs. December 2022) is 2.5% and the average annual inflation rate
for April 2022-March 2023 vs. April 2021-March 2022 is 14.1%.
In April 2023, the monthly inflation rate was 0.3% from the previous month and the
annual inflation rate for April 2023 compared to April 2022 was 11.6%. Year-to-date
inflation (April 2023 versus December 2022) is 3.0% and the average annual inflation
rate for May 2022 to April 2023 versus May 2021 to April 2022 is 16.3%.
According to the April 2023 HICP, the monthly inflation rate is 0.5 percent from the
previous month and the annual inflation rate for April 2023 compared to April 2022 is
10.3 percent. Year-to-date inflation (April 2023 versus December 2022) is 3.0% and the
average annual inflation rate for May 2022-April 2023 versus May 2021-April 2022 is
13.9%.
In May 2023, monthly inflation was -0.1% compared to the previous month and annual
inflation for May 2023 compared to May 2022 was 10.1%. Year-to-date inflation (May
2023 versus December 2022) is 2.8% and the average annual inflation rate for June 2022-
May 2023 versus June 2021-May 2022 is 15.8%.
According to the May 2023 HICP, monthly inflation was -0.2% compared to the previous
month and annual inflation for May 2023 versus May 2022 was 8.6%. Year-to-date
inflation (May 2023 versus December 2022) is 2.8% and the average annual inflation rate
for June 2022-May 2023 versus June 2021-May 2022 is 13.5%.

21
In June 2023, the monthly inflation rate was -0.4% from the previous month and the
annual inflation rate for June 2023 compared to June 2022 was 8.7%. Year-to-date
inflation (June 2023 versus December 2022) is 2.4% and the average annual inflation rate
for July 2022-June 2023 versus July 2021-June 2022 is 15.0%.
According to the June 2023 HICP, monthly inflation was 0.1% from the previous month
and annual inflation for June 2023 compared to June 2022 was 7.5%. Year-to-date
inflation (June 2023 versus December 2022) is 2.9% and the average annual inflation rate
for July 2022 to June 2023 versus July 2021 to June 2022 is 12.9%.
In July 2023, the monthly inflation rate was 0.9% compared to the previous month, and
the annual inflation rate for July 2023 compared to July 2022 was 8.5%. Year-to-date
inflation (July 2023 versus December 2022) is 3.3%, and average annual inflation for
August 2022-July 2023 compared to August 2021-July 2022 is 14.3%.
According to the July 2023 HICP, the monthly inflation rate was 1.2% from the previous
month and the annual inflation rate for July 2023 compared to July 2022 was 7.8%. Year-
to-date inflation (July 2023 compared to December 2022) is 4.1% and the average annual
inflation rate for August 2022-July 2023 compared to August 2021-July 2022 is 12.3%.
In August 2023, the monthly inflation rate was 0.4% from the previous month and the
annual inflation rate for August 2023 compared to August 2022 was 7.7%. Year-to-date
inflation (August 2023 compared to December 2022) is 3.7% and the average annual
inflation rate for September 2022-August 2023 compared to September 2021-August
2022 is 13.4%.
According to the August 2023 HICP, the monthly inflation rate is 0.5% from the previous
month and the annual inflation rate for August 2023 compared to August 2022 is 7.5%.
Year-to-date inflation (August 2023 compared to December 2022) is 4.6% and the
average annual inflation rate for September 2022-August 2023 compared to September
2021-August 2022 is 11.6%.
In September 2023, monthly inflation was -0.1% from the previous month, and annual
inflation for September 2023 compared to September 2022 was 6.3%. Year-to-date
inflation (September 2023 compared to December 2022) is 3.6% and the average annual
inflation rate for October 2022-September 2023 compared to October 2021-September
2022 is 12.4%.
According to the September 2023 HICP, monthly inflation was -0.3% from the previous
month and annual inflation for September 2023 compared to September 2022 was 6.4%.
Year-to-date inflation (September 2023 compared to December 2022) is 4.2% and the
average annual inflation rate for October 2022-September 2023 compared to October
2021-September 2022 is 10.8%.
In October 2023, monthly inflation is 0.4% and annual inflation for October 2023
compared to October 2022 is 5.8%. Year-to-date inflation (October 2023 versus
December 2022) is 4.1% and average annual inflation for November 2022 to October
2023 versus November 2021 to October 2022 is 11.4%.
According to the October 2023 HICP, monthly inflation is 0.2% and annual inflation for
October 2023 compared to October 2022 is 5.9%. Year-to-date inflation (October 2023
versus December 2022) is 4.4% and the average annual inflation rate for November 2022
to October 2023 versus November 2021 to October 2022 is 10.1%.
November 2023 monthly inflation is 0.3% and November 2023 annual inflation relative
to November 2022 is 5.4%. Year-to-date inflation (November 2023 versus December

22
2022) is 4.4%, and the average annual inflation rate for December 2022-November 2023
versus December 2021-November 2022 is 10.5%.
According to the November 2023 HICP, monthly inflation is 0.2% and annual inflation for
November 2023 compared to November 2022 is 5.5%. Year-to-date inflation (November
2023 versus December 2022) is 4.7% and the average annual inflation rate for December
2022-November 2023 versus December 2021-November 2022 is 9.4%.
In December 2023, the monthly inflation rate is 0.3% and the annual inflation rate for
December 2023 compared to December 2022 is 4.7%. Annual average inflation for the
period January to December 2023 compared to the period January to December 2022 is
9.5%
According to the December 2023 HICP, monthly inflation is 0.3% and annual inflation for
December 2023 compared to December 2022 is 5.0%. The average annual inflation rate
for the period January - December 2023 compared to the period January - December
2022 is 8.6%.
*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 30 June 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 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 on target for January 1, 2025. The changes are made in a decree of the
Council of Ministers on the establishment of a coordination council for our preparations
for euro area membership, submitted for public discussion. Our country missed the
previous target date for the introduction of the euro in our country - January 1, 2024,

23
after the caretaker government failed to submit a report on the fulfilment of the
eurozone membership criteria in February.
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 № 103 of the
Council of Ministers of 25 March 2021 amending and supplementing Decree № 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. 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.
The Council of Ministers of the Republic of Bulgaria by Decision No 797 of 13 November
2023 adopted an updated National Plan for the introduction of the euro in Bulgaria. The
update is made in order to clarify the texts of the Plan in relation to the change of the
indicative date for the introduction of the euro to 1 January 2025, as well as to reflect
the progress achieved until now in the technical preparations for the introduction of the
euro and to adapt the remaining preparatory activities to the new indicative date.
As an annex to the Plan, 'Methodological guidance to administrative authorities on
adapting information systems to the euro' is included to ensure the accurate and
uniform application of the euro introduction requirements by administrative authorities
when adapting their information systems to work with the euro. The national plan for
the introduction of the euro in the Republic of Bulgaria foresees the implementation of
a large-scale communication and information campaign which will inform citizens about
all practical aspects of the introduction of the euro as the official means of payment by
providing accurate, accessible and timely information.
In the framework of his working visit to Brussels in early November, Finance Minister
Assen Vassilev held a meeting with Eurogroup President Pascal Donahue, with European
Commission Executive Vice President Valdis Dombrovskis, with Economy Commissioner
Paolo Gentiloni and with Piero Cipollone, member of the Executive Board of the
European Central Bank. At the meeting, the representatives of the Commission and the
ECB expressed full support for Bulgaria's accession to the euro area.

24
On 28.10.2023, according to the Ministry of Finance, Fitch Ratings affirmed Bulgaria's
long-term foreign and local currency sovereign credit rating at 'BBB' with a positive
outlook. The positive outlook reflects the country's plans to join the euro area, which
could lead to further improvements in the country's external position indicators. On the
other hand, the low investment-to-GDP ratio and unfavourable demographic factors
weigh on potential economic growth and public finances in the longer term. Despite a
downward trend, inflation in Bulgaria remains significantly above that in the three
lowest EU Member States and does not currently meet the price stability criterion. Given
the considerable uncertainty regarding inflation developments, Fitch Ratings remains
questionable about the fulfilment of the price stability criterion in mid-2024 (the key
date for euro area accession in 2025). According to forecasts, Bulgaria is likely to meet
all other nominal euro adoption criteria (public finances, interest rate and exchange
rate). In this regard, the agency's analysts consider the adoption of the euro to be
supportive of the rating, as, all else being equal, it would improve the country's rating by
around two grades.
According to BNB data as of 31.01.2024, gross external debt at the end of November
2023 amounts to €44,402.6 million (46.5% of GDP2), which is €448.5 million (1%) more
than at the end of November 2022 (43,954.2 million euros, 51.2% of GDP). At end-
November2023, short-term liabilities are € 7,174.2 million (16.2% of gross debt, 7.5% of
GDP) and decreased by €1,362.2 million (16%) compared to November 2022 (€8,536.5
million, 19.4 % of debt, 9.9% of GDP). Long-term liabilities amount to €37,228.4 million
(83. 8% of gross debt, 38.9% of GDP), increasing by €1,810.7 million (5.1%) compared to
the end of November 2022 (€35,417.7 million, 80.6% of debt, 41.3% of GDP).
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.
RISKS RELATED TO
MILITARY
CONFLICTS IN THE
MIDDLE EAST AND
UKRAINE
The outbreak of military conflict in the Middle East, in addition to the simmering Russia-
Ukraine conflict, has the potential to deal a new blow to economic confidence at a time
when hopes have been growing for a containment of price rises triggered by Russia's
invasion of Ukraine in 2022. The conflict that erupted, accompanied by hundreds killed
when Hamas fighters invaded from their enclave and Israel responded with force, added
the possibility of a wider Middle East conflict to the sense of global instability caused by
the military actions in Ukraine that began more than 20 months ago. Depending on the
duration of the conflict and how intense it appears to become, it will be assessed
whether it has the capacity to spread to other parts of the region. At present, it is not
possible to outline the scale of the effects and manifestations of the conflict on oil and
share prices. The raging conflict in Gaza has the potential to add an unpredictable set of
negative risks to a global economy that is already slowing. The conflict risks higher oil
prices and risks to inflation, including affecting the growth prospects of the global
economy. Oil and gas price increases caused by military conflicts not only reduce the
purchasing power of populations and companies, but also raise the cost of food
production.

25
Nations are now struggling with unusually high levels of debt, weak private investment
and the slowest recovery in trade for five decades, reducing the chances of an early
recovery. Higher interest rates are the result of central bank efforts to tame inflation,
making it harder for governments and private companies to access credit and to prevent
defaults.
Adding to the economic problems, which are fuelled by deepening geopolitical conflicts,
are tensions between the United States and China over technology transfer and security,
which complicate efforts to work together on other issues such as climate change, debt
relief or the prevention of regional conflicts.
The U.S. and U.K. attack launched in early 2024 against Yemeni Houthi rebel targets risks
significantly expanding the conflict in Gaza. The attacks were the first major act of
revenge since the Houthis began attacking merchant ships in the Red Sea - through
which about 15% of the world's sea traffic passes. US and UK forces have attacked anti-
aircraft surveillance systems, radars and arsenals of drones, cruise and ballistic missiles
in various parts of Yemen under the control of Houthi rebels. At the same time, car
manufacturers Tesla and Volvo have already announced the temporary suspension of
some of their production in Europe due to component shortages resulting from changes
in sea traffic through the Red Sea. The attacks undertaken by the United States and the
United Kingdom not only increase the scope of the conflict to other actors and
geographical spaces, but open the gap between the United States and almost the entire
Arab world.
Geopolitical tension, combined with the outbreak of active military actions in multiple
regions, contribute to an unstable global order characterized in undermining trust and
uncertainty. Recent events, combined with the ongoing and deepening impact of
extreme meteorological conditions, are increasing cost of living pressures and increasing
economic uncertainty in many parts of the world. To these risks should be added the
risks associated with the misinformation of societies, which have become increasingly
evident in societies that have been politically and economically weakened in recent
years. These risks will become increasingly difficult to overcome as global cooperation
erodes. At the same time, the consequences of an increasingly fragmented world affect
the ability to manage emerging global risks precisely because of a lack of consensus and
cooperation.
RISK OF
ELECTRICITY PRICE
INCREASES
Rising electricity and energy prices, which have become particularly pronounced since
Russia's invasion of Ukraine, have put pressure on European consumers after two years
of coronavirus, production blockages and employment problems. In 2023, the global
instability was increased by the armed conflict in Gaza, which threatened energy
supplies. The expansion of the war in Gaza and the involvement of the Houthis from
Yemen and the subsequent bombing by the US and the UK, has led to serious risks for
shipping in the Red Sea, and hence the avoidance of this route by oil suppliers.
The mentioned military conflicts lead to serious uncertainties in the supply of oil and gas,
and thus affect their price, respectively the price of electricity.
In case the Red Sea is closed to shipping, even for a short period of time, this will cause
a new rise in energy prices.

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 as a share of the total cost structure per unit of finished goods is as follows:
2021 – 70%, 2022 – 61%, and 2023 – 65%.
The risk of price change in the main raw material – lead is being managed by means
of own recycling facilities and by monthly indexation of the sales prices of batteries. In
2023 the used lead produced by own recycling facilities is 91%.
DEPENDENCE OF MONBAT AD ON DISTRIBUTORS, SUPPLIERS, CUSTOMERS
There is no dependence of MONBAT AD on customers because the Company’s sales
are made directly to customers, but through an extensive distribution network in the
country and abroad. Significant part of the sales with deferred payment in the country and
abroad are insured by 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 significant markets in 2023 being France, Germany, Romania and
Spain.
DEPENDENCE OF MONBAT AD ON KEY PERSONNEL
The professional activities and efforts, qualifications, motivation and reputation of
the members of the Board of Directors and the senior officials of MONBAT AD and other
entities within the group are essential for achieving the strategic and investment objectives
of the Company. The leave or release of any member of Board 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 Directors members and
key management personnel in the activities of the Company.
RISK OF CHANGE IN THE DEMAND AND INTRODUCTION OF NEW TECHNOLOGIES
This risk is related to demographic, economic, technological changes or the
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 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 back-up source for photovoltaic power supply and lighting systems also
grows. These new generation products could negatively affect the demand for existing and

27
approved products, as a result of the fact that 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
telecommunication application, semi-traction batteries, and special batteries for military
application.
LIQUIDITY RISK
Liquidity risk consists of the likelihood that MONBAT AD is unable to pay its current
liabilities. The absolute liquidity ratio indicates the company’s ability to meet its short-term
liabilities with its available cash.
The cash ratio of the Company for 2023 is 0.04. As of 31.12.2023 the cash and
cash equivalents of the Company increased by 179% compared to 2022, and current
liabilities increase by 15.1%.
CREDIT RISK
Credit risk is the risk that a counterparty will not pay its obligation to the Company.
MONBAT AD regularly monitors the non-fulfillment of obligations of its customers and other
counterparties, established individually or in groups, and uses this information to control
credit risk. The customer's creditworthiness is assessed based on an internal credit rating
methodology, and individual credit limits are determined in accordance with this
assessment. It is the policy of MONBAT AD to carry out transactions only with
counterparties with a good credit rating.
A significant part of sales with deferred payment in the country and abroad are
insured by the Bulgarian Export Insurance Agency /BAEZ/ or COFACE, which is why the
risk of non-payment by customers is limited. The Company assesses the concentration of
risk in relation to trade receivables as low, as its customers are located in several
jurisdictions and operate to a significant extent in independent markets.
The credit risk of balances in banks and financial institutions is managed by the
central administration of the Company in cooperation with the Board of Directors.
Investments of excess funds are made only with approved counterparties and within
approved credit limits for each counterparty. The credit risk related to cash and cash
equivalents is considered immaterial, as the counterparties are banks with a good
reputation and a high external credit rating.
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 the Company’s long -standing practice to provide clear and
accurate environmental information on its products, services and activities to customers,
suppliers, and the public.

28
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.
EFFECT OF INTERNATIONAL CONFLICTS
The war between Russia and Ukraine, which started on 24 February 2022, has
caused a wide international response and has affected countries in Europe in various
aspects. The ongoing hostilities between Russia and Ukraine, the imposition of sanctions
and restrictions by the European Union, the United States, Canada, the United Kingdom
and other countries on Russia, the Russian Central Bank, credit institutions, companies
and individuals caused significant disruption in the financial markets in 2022. As a result,
2023 brought continued geopolitical tensions, recalibration of economic growth, inflation,
rising interest rates in the U.S. and Europe, and rising commodity prices.
MONBAT AD has no net investments, subsidiaries or assets in Russia, Belarus, or
Ukraine, but carries out trade with companies based in Ukraine.
To address the aforementioned circumstances, the Company undertook measures,
through which to limit the negative consequences on the financial results for 2022 and
2023.
Risk analysis and measures and actions taken:
• In 2023, there was a normalisation in the markets for the main products and goods
sold by the Company compared to 2022. The following market developments were
observed:
o Increased demand for starter car batteries in Western European markets,
where historic record sales of this type of product were achieved. In 2022,
demand for these products was significantly depressed by sharp inflationary
movements in the region and the associated shift in consumer behaviour.

29
o Substantial decline in sales of larger and more profitable semi-cyclical
batteries, representing mainly purchased goods, due to the normalization
of the delivery period of US manufacturers of this type of batteries, which
was drastically extended in 2022 due to the logistical challenges during the
period, and respectively the reorientation of the market back towards US
products.
o Decline in stationary (telecom) battery sales due to substantial volumes to
leading telecom operators and system integrators in Russia in the first two
months of 2022, i.e. just before the start of the war in Ukraine.
• During 2023 MONBAT AD has no sales to Russian customers, while sales to
customers based in Ukraine represent 4.0% of total sales revenue. (2022: Russia
– 2.2%, Ukraine – 2.1%).
• In relation to supply chains, the Company is not directly dependent on Russian,
Ukrainian or Belarusian suppliers and has not experienced any bottlenecks or
interruptions in supply from Russian or Ukrainian counterparties resulting in
interruptions in the production process.
• As a result of inflationary developments and market volatility, the average market
price of lead in 2023 was around EUR 1 977/MT (2022: EUR 2 041/MT). MONBAT
AD addresses this volatility and the dependence of the lead price on stock market
indices by applying a standard indexation of its sales prices to all its counterparties.
• The Company's main customers have not experienced financial difficulties directly
related to the military conflicts in Ukraine and the Middle East.
• 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 advance payments on all export sales to Ukraine following
the outbreak of hostilities in the country. Although towards the end of 2023 and
2022, there are no significant delays in the collection of receivables from
customers, the activity of several specific customers in Russia and Ukraine, where
even in pre-war periods a delay in collection was noticeable was further complicated
by the military conflict and in this connection the Company has recognized
impairment costs related to the trade receivables from the same in the amount of
BGN 0 in 2023 and BGN 260 thousand in 2022. As of December 31, 2023, the
Company has trade receivables from Ukrainian and Russian customers (net of
impairments) in the amount of BGN 10 148 thousand.
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.
V. IMPORTANT EVENTS WHICH OCCURRED AFTER THE DATE OF THE ANNUAL
SEPARATE FINANCIAL STATEMENTS
All important events, which have occurred after the date of the annual separate
financial statements, were disclosed through the information disclosure system of MONBAT

30
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.
No adjusting or significant non-adjusting events occurred between the date of the
individual financial statements and the date of approval for their publication, except for
the following non-adjusting event:
• On 22 January 2024, a General Meeting of the bondholders of the convertible
bond issue was held, at which a decision was made to postpone the payment of the second
installment of the principal in the amount of EUR 8 404 500 by sixty calendar days starting
from 20 January 2024, in order to utilize funds under a contractual loan with a financial
institution, through which the payment will be partially financed. As at the date of approval
of the individual financial statements, payment to the bondholders has not yet been made,
as the procedure for utilizing funds from the financial institution has not been completed.
VI. CURRENT TRENDS AND PROBABLE FUTURE DEVELOPMENT OF THE
COMPANY
In the upcoming 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 70 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 2023 is 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

31
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.
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
• Implementation period – 180 calendar days with the possibility of extension
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 31.12.2023 is 33 545 or
0.09% of the voting rights of MONBAT AD

32
4. The total remuneration received during the year by the members of the
boards
In 2023 the members of the Board of Directors and the Procurator have received
the following remuneration:
Table № 12
Full name Position
Gross
amount in
BGN
Net amount
in BGN
1 Evelina Pavlova Slavcheva Member of the BoD 40 000 36 000
2 Chavdar Dochev Danev Member of the BoD 40 000 36 000
3 Viktor Stanimirov Spiriev Member of the BoD 40 000 36 000
4 Peter Nikolov Bozadzhiev Member of the BoD 40 000 36 000
5 Petar Hristov Petrov Member of the BoD 40 000 36 000
6 Kyle Patrick Anderson Member of the BoD 40 000 36 000
7 Florian Huth Member of the BoD 40 000 36 000
8 Viktor Stanimirov Spiriev Executive Member of the BoD 737 195 655 903
9 Peter Nikolov Bozadzhiev Group Operations Director 481 418 425 704
10 Petar Hristov Petrov Battery Division Director 279 858 244 300
11 Chavdar Dochev Danev Finance Director for Liaison with Financial
Institutions 94 111 84 700
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 31.12.2023, 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 provisions 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 31.12.2023:
He has not participated in companies and partnerships as an unlimited liability
partner;
He has not held more than 25% of the shares of commercial companies.

33
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 31.12.2023:
• Member of the Managing Board of Prista Oil Holding EAD, UIC 121516626;
• Member of the Board of Directors of Zahar Invest AD, UIC 104119736
• Member of the Board of Directors of BST – Bulgaria AD, 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 31.12.2023:
He has not participated in companies and partnerships as an unlimited liability
partner;
He has not hold more than 25% of the shares of commercial 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 31.12.2023:
• Member of the Board of Directors of Start AD, UIC 124712007
FLORIAN HUTH – MEMBER OF THE BOARD OF DIRECTORS until 12.07.2023
Names of all the companies and partnerships of which Mr. Huth has been a
partner as of 31.12.2023:
• Owner of Valens 2017 EOOD, UIC: 204670224, 32A Cherni Vrah Blvd, Sofia;
Has not participated in companies and partnerships as an unlimited liability partner;
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 31.12.2023:
• 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 Valens 2017 EOOD, UIC: 204670224, 32A Cherni Vrah Blvd, Sofia

34
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 31.12.2023:
• Owner of PARVA KLAPA 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 31.12.2023:
• MONBAT NEW POWER AD, UIC: 204333335; 32A Cherni Vrah Blvd., Sofia;
• Manager of PARVA KLAPA 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 Ms. Slavcheva has been
a partner as of 31.12.2023:
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 Ms. Slavcheva has been
a member of the administrative, management or supervisory bodies and /or
other senior manager as of 31.12.2023:
• Managing partner in ELHIM ENERGY, UIC: 200171341, 12 Ivan Milanov Str., 1505
Sofia;

35
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 31.12.2023:
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
• 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 OOD, UIC 204588474
• PRISTA PORT OOD, 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 31.12.2023:
• 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 OOD, UIC 204588474
• PRISTA PORT OOD, UIC 203258566
• PRISTA PORT BUCHANAN LLC

36
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 31.12.2023:
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 31.12.2023:
• SPIRIEV AD, UIC 117599580 - member of the board of directors
• ARTMONBAT AD, UIC 205774610 - member of the board of directors
• MONBAT NBP EAD, UIC 206010099 - member of the board of directors
• STS SRL Italy UIC 0244198078 - member of the board of directors
• Societe Nouvelle de l’accumulateur Nour Tunisia, UIC 1027384F – member of the
BoD
8. Executed contracts in 2023 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 2023 no 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 have been executed.
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 2023 MONBAT AD has used instruments, namely 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.

37
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 2021- 2023
Table № 13
TYPE OF SALE 2023 2022 2021
Number of batteries sold 2 750 513 2 642 814 3 429 234
BREAKDOWN OF SALES BY TYPES OF BATTERIES
Table № 14
BREAKDOWN OF SALES BY TYPES OF
BATTERIES (share of quantity sold) 2023 2022 2021
Starter Batteries 87.36% 82.60% 84.12%
Stationary Batteries 4.62% 6.44% 6.05%
Semi traction Batteries 8.02% 10.96% 9.83%
Total: 100% 100% 100%
Table № 15
BREAKDOWN OF SALES BY TYPES OF
BATTERIES (share of sales revenue) 2023 2022 2021
Starter Batteries 73.10% 64.09% 67.13%
Stationary Batteries 13.38% 17.81% 17.24%
Semi traction Batteries 13.52% 18.10% 15.63%
Total: 100% 100% 100%
In 2023 the weighted average capacity per unit of battery sold is 84 Ah (2022 - 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 №5.
Information about the revenues based on market segmentation is provided in
Table № 2.

38
3. Information about concluded material transactions
In 2023, MONBAT AD did not conclude significant transactions within the meaning
of Ordinance 2 of the FSC, with the exception of those disclosed in the separate financial
statements:
- On 22 March 2023, the Company, together with its subsidiary Monbat Recycling
Bulgaria EAD, which owns 10% of the capital of Monbat Holding GmbH, sent a notice
to Britishvolt to terminate the contract for the sale of Monbat Holding GmbH due to
non-fulfillment of the agreed terms by Britishvolt party (Note 7.1 of the Individual
Financial Statements)
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 2023 MONBAT AD has concluded transactions with the following related parties:
Table № 16
Related party Type of relation Transactions
Monbat Trading OOD Shareholder in MONBAT AD Purchase of goods and
services, sale of services and
accrued interest on loan
granted by MONBAT AD
Prista Oil Holding EAD Shareholder in MONBAT AD and
ultimate parent company
Purchase of goods and
services; sale of finished goods
and services, accrued interest
on deposits granted by
MONBAT AD
START AD Subsidiary company of MONBAT
AD
Sale of finished goods and
services. Purchase 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 SPED EOOD Subsidiary company of MONBAT
AD
Sale of services and goods;
purchase of services and
materials by MONBAT AD

39
Related party Type of relation Transactions
Monbat SA Proprietary Limited Subsidiary company of MONBAT
AD
Sale of finished goods and
services; purchase of goods by
MONBAT AD
ARTMonbat AD Subsidiary company of MONBAT
AD
Loan granted and purchase of
materials by MONBAT AD
Monbat Immobilien GmbH Subsidiary company of MONBAT
AD
Loan granted by MONBAT AD
Monbat NBP EAD Subsidiary company of MONBAT
AD
Accrued interest on loan
granted by MONBAT AD
Societe Nouvelle des
Accumulateurs Nour
Subsidiary company of MONBAT
AD
Sale of finished goods,
materials and services;
purchase of materials by
MONBAT AD
Societe Nour Distribution Subsidiary company of Societe
Nouvelle des Accumulateurs Nour
Sale of materials, production
and services by MONBAT AD
Alliance Energy Companies AD Company under common control Accrued interest on loan
granted by MONBAT AD
Prista Invest 2016 AD Sole owner of the parent company Accrued interest on loan
granted by MONBAT AD
Torlashka Sreshta EOOD Company controlled by a person,
exercising joint control over the
parent company
Accrued interest on loan
granted by MONBAT AD
Monbat Eco Projects OOD Company controlled by a person,
exercising joint control over the
parent company
Accrued interest on loan
granted by MONBAT AD
Black Star International AD Company under common control Loan granted by MONBAT AD
Holdco Investment EOOD Sole owner of Prista Holdco
Cooperatief U.A.
Loan granted by MONBAT AD
Prista Holdco Cooperatief U.A. Shareholder in Monbat AD Loan granted by 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 2023 no unpredictable and unforeseen circumstance of an extraordinary nature
occurred that had an impact on the Company.

40
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 2023 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 31.12.2023 MONBAT AD has direct and indirect holdings in the following
subsidiaries within the economic group of the issuer:
Table № 17
Company’s name Principal activity
Capital share or
percentage of votes at
the General Assembly
as of 31.12.2023
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
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
100% of the capital

41
Company’s name Principal activity
Capital share or
percentage of votes at
the General Assembly
as of 31.12.2023
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.
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 ARTMONBAT 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
GmbH
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
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

42
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:
Summary of bank loan contracts
1. UBB AD
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 № 48489.5.597,
cadaster № 48489.5.281, cadaster № 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: 31.07.2027
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 31.12.2023 at the amount of BGN 17 700 049 or EUR 9 049 892 –
entirely short-term.
2. Eurobank Bulgaria AD
Contract № 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
With an annex dated 13.01.2023, valid until 30.09.2023, the amount of the loan is
increased to BGN 30,706,381.
Maturity date: 31.01.2024, with an annex dated 2024 extending the term to 30.06.2024.
Utilized amount as of 31.12.2023 at the amount of BGN 18 962 544 – entirely short-term.
3. Eurobank Bulgaria AD
Contract № 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 № 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 № RD -18-19-/05.04.2006 of the Procurator of AK.
Pledges:

43
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: 31.01.2024, extended to 30.06.2024 by annex dated 2024
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 31.12.2023 at the amount of BGN 1 930 570 – entirely short-term.
4. DSK Bank EAD
Contract №1675/16.09.2015
Maturity date: 10.09.2024
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 31.12.2023 at the amount of EUR 2 500 000 or BGN 4 889 575 -
entirely short-term.
5. DSK Bank EAD
Contract №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: 10.09.2024
First rank pledge on the fixed assets of MONBAT AD
Next in line special pledge on receivables.
Utilized amount as of 31.12.2023 at the amount of BGN 8 999 883 – entirely short-term.
6. UBB AD
Contract dated 09.11.2015
Maturity date: 15.12.2025
Loan amount: BGN 490 000 overdraft
Interest: Variable reference interest rate + mark-up
Collateral: No collateral
Utilized amount as of 31.12.2023 at the amount of BGN 487 239 – entirely short-term.

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7. Eurobank Bulgaria AD
Contract 359/2017 dated 05.10.2017
Loan amount: EUR 2 556 459 credit line
Interest: 3 M EURIBOR + mark-up
Maturity date: 31.01.2024
Collateral: First pledge agreement for Monbat’s receivables from the third parties.
Utilized amount as of 31.12.2023 at the amount of BGN 2 196 657 or EUR 1 123 133 –
entirely short-term.
8. UBB AD
Contract 20F-00428 dated 10.04.2020
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 31.12.2023 and final
repayment until 31.12.2023 and with the right to draw down the second sub-limit in case
of successful review, which the bank will carry out until 31.12.2023
Maturity date: 31.07.2024
Utilized amount as of 31.12.2023 at the amount of BGN 3 911 018 or EUR 1 999 672 –
entirely short-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 31.12.2023. With
a successful review, the maturity date is 30.07.2025.
Utilized amount as of 31.12.2023 at the amount of BGN 7 823 320 or EUR 4 000 000 of
which BGN 3 911 660 (EUR 2 000 000) - short-term.

45
10. Investbank AD
Contract dated 21.07.2021
Maturity date: 26.03.2024, extended by one year with annex dated 2024
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.
Utilized amount as of 31.12.2023 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: 26.03.2024, extended by one year with annex dated 2024
Loan amount: EUR 5 000 000 credit line
Interest: 3 M EURIBOR + mark-up
Collateral:
First rank contractual mortgage of a property with an area of 48489,11,537 an area of
782 sq. m., owned by Monbat Recycling EAD.
First rank pledge on current and future receivables available in all open accounts held by
MONBAT AD, Monbat Recycling EAD and Prista oil Holding EAD
Pledge on receivables on all borrower's accounts opened in the bank; insurance with BAEZ,
covering the exposure under the contract up to EUR 4 million.
Utilized amount as of 31.12.2023 at the amount of BGN 9 779 150 (EUR 5 000 000) -
entirely short-term
12. UBB AD
Contract 20F-00102 dated 01.02.2023
Maturity Date 01.08.2024
Loan amount: EUR 437 840 EU
Type of credit: Investment
Interest: 3 M EURIBOR + mark-up
Collateral: Pledge on fixed assets for the amount of 437 840 EUR situated on an area of
48489,5,597, which are gas installation
Utilized amount as of 31.12.2023 at the amount of BGN 644 041 or EUR 329 292 – entirely
short-term.
13. UBB AD
Contract 20F-00103 dated 01.02.2023
Maturity Date 01.02.2024
Loan amount: EUR 97 298 EUR
Type of credit: VAT credit line
Interest: 3 M EURIBOR + mark-up
Collateral: Pledge on receivables
Utilized amount as of 31.12.2023 at the amount of BGN 0

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14. UBB AD
Contract 23F-000767 dated 21.08.2023
Date of maturity: 14.08.2024
Credit amount: 3 500 000 EU
Type of credit : Investment Type
Interest: 1 М EURIBOR+add ons
Collateral: Land property with identifier 72624.603.372 property of Start AD
Utilized amount as of 31.12.2023 at the amount of BGN 6 441 125 or EUR 3 293 295 –
entirely short-term).
15. Bank credit card accounts with credit limits BGN 50 000 and utilized amounts
as of 31.12.2023 at the amount of BGN 10 thousand.
Summary of loan contracts from other financial institutions:
16. UBB Interlease EAD
Contract dated 18.10.2019
Maturity Date: 19.11.2024
Amount of Credit: EUR 1 271 250 credit line
Interest: Fixed interest
Collateral: assembly line for lead-acid accumulators and lead-acid furnace
Utilized amount to 31.12.2023 in the amount of EUR 211 875 or BGN 414 391, from which
BGN 414 391 is short-term.
17. 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 31.12.2023 in the amount of EUR 44 000 or BGN 86 056, entirely short-
term.
18. UBB Interlease EAD
Contract dated 26.11.2021
Maturity Date: 26.11.2025
Amount of credit: EUR 420 366 credit line
Interest: Fixed interest
Collateral: 13 machines
Utilized amount to 31.12.2023 in the amount of EUR 170 100 or BGN 332 687 from which
BGN 164 000 is short-term.
19. 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 31.12.2023 in the amount of EUR 47 018 or BGN 91 960, entirely short-
term.

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20. 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 up to 31.12.2023 - EUR 858 292 or BGN 1 678 673 of which BGN 557 000
is short-term.
21. OTP Leasing
Contract dated 18.01.2023
Maturity Date: 05.11.2028
Amount of credit: EUR 96 150
Type of credit: credit line for fixed assets
Interest: Variable reference interest rate + mark-up
Collateral: Installation for reverse osmosis
Utilized amount up to 31.12.2023 - EUR 96 150 or BGN 188 000 of which BGN 21 000 is
short-term.
Loan contracts of the subsidiaries of MONBAT AD, in their capacity as
borrowers:
1. UBB AD
Contract N 1317/18.03.2016
Borrower: Start AD
Maturity date: 31.01.2028
Loan amount: EUR 4 500 000.
Type of loan: working capital
Interest: 3 М EURIBOR+mark-up
Collateral:
Land with identification № 72624.603.300., including the buildings on it. Land with
identification 72624.603.190., including the buildings on it. Land with identification
72624.603.191., including the buildings on it. Land with identification 72624.603.193.,
including the buildings on it. Land with identification 72624.603.196., including the
buildings on it. Special pledge on fixed assets. Pledges on bank accounts held with the
UBB AD.
Balance as of 31.12.2023 at the amount of EUR 4 500 000 or BGN 8 801 235
2. UBB AD
Contract 27.09.2022
Borrower: Start AD
Maturity date: 25.03.2028
Loan amount: EUR 546 000 investment loan
Interest: 3 М EURIBOR+mark-up
Collateral: fixed assets
Balance as of 31.12.2023 at the amount of EUR 463 764 or BGN 907 043.
3. UBB AD
Contract. 23F00100 /01.02.2023 г
Borrower: Start AD
Maturity date:. 01.08.2024
Loan amount: EUR 332 114 investment loan
Interest : 3 М EURIBOR+ mark up
Collateral: Long-term assets
Utillized amount as of 31.12.2023 BGN 383 099 (EUR 195 875).

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4. UBB AD
Contract. 23F00101 /01.02.2023
Borrower: Start AD
Maturity date: 01.02.2024
Loan amount: EUR 73 803 VAT credit line
Interest: 3 М EURIBOR+ mark up
Collaterall:
Pledge on all current and future credit and debit cards in UBB AD
Utillized amount as of 31.12.2023 BGN 11 286 (EUR 5 770).
5. Raiffeisen Bank SA Romania
Contract N 80046/IS/2017
Borrower: SC Monbat Recycling S.R.L.
Maturity date: 29.11.2024
Loan amount: EUR 5 000 000
Type of loan: Credit line
Interest: 1 - week EURIBOR + mark-up
Collaterals: Corporate guarantee issued by Prista Oil Holding EAD as well as - recycling
equipment for recycling of scrap batteries
Special pledge on receivables and inventory
Balance as of 31.12.2023 at the amount of EUR 3 996 769 or BGN 7 817 000.
6. UBB AD
Contract from 15.07.2015
Borrower: Monbat Recycling EAD
Maturity date: 30.07.2024
Loan amount: EUR 3 000 000
Type of credit: Credit line
Interest: 1 М EURIBOR + mark-up
Collaterals: first rang pledge on receivables to the bank
Third rang pledge on Engitec installation
First rang pledge on inventory.
Balance as of 31.12.2023 at the amount of EUR 3 000 000 or BGN 5 867 490
7. Eurobank Bulgaria AD
Contract N 196/2016
Borrower: Monbat Recycling EAD
Maturity date: 31.01.2024, extended to 30.06.2024 with annex dated 2024
Loan amount: EUR 1 500 000
Type of loan: working capital
Interest: 3 М EURIBOR +mark-up
By annex dated on 27.09.2017 the loan amount is increased up to EUR 2 500 000
Repayment: ongoing basis depending on the amount of available cash.
Collateral: First rang on receivables from third parties.
Balance as of 31.12.2023 at the amount of EUR 2 404 405 or BGN 4 702 607
8. Raiffeisen Bank Serbia
Contract from 15.04.2019
Borrower: Monbat PLC DOO
Maturity date: 14.04.2024
Loan amount: EUR 2 000 000
Type of loan: working capital
Interest: 1 М EURIBOR +mark-up
Collateral: first rang pledge on inventory
Balances as of 31.12.2023 at the amount of EUR 2 000 000 or BGN 3 911 660.

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9. Procredit Bank Serbia
Contract from 27.02.2023
Borrower: Monbat PLC DOO
Maturity date: 01.03.2028
Loan amount: EUR 700 000
Type of loan: working capital
Interest: 1 М EURIBOR +mark-up
Collateral: Promissory note issued by the company
Balance as of 31.12.2023 at the amount of EUR 641 958 or BGN 1 255 561
10. Procredit Bank Serbia
Contract from 30.03.2023
Borrower: Monbat PLC DOO
Maturity date: 01.04.2028
Loan amount: EUR 400 000
Type of loan: Revolving
Interest: 1 М EURIBOR + mark-up
Collateral: Promissory note issued by the company
Balance as of 31.12.2023 at the amount of EUR 366 462 or BGN 716 737
11. Procredit Bank Serbia
Contract from 24.06.2023
Borrower: Monbat PLC DOO
Maturity date: 24.06.2028
Loan amount: EUR 300 000
Type of loan: Revolving
Interest: 1 М EURIBOR +mark-up
Collateral: Assets
Balance as of 31.12.2023 at the amount of EUR 300 000 or BGN 586 749
12. Procredit Bank Serbia
Contract from 10.11.2021
Borrower: Monbat PLC DOO
Maturity date: 10.11.2024
Loan amount: EUR 1 100 000
Type of loan: working capital
Interest: 1 М EURIBOR +mark-up
Balance as of 31.12.2023 at the amount of EUR 1 100 000 or BGN 2 151 413
13. MEDIOCREDITO ITALIANO S.P.A.
Contract from 30.04.2019
Borrower: Piombifera Italiana Spa
Maturity date: 31.03.2029
Loan amount: EUR 3 500 000
Type of loan: working capital
Interest: 3M EURIBOR+mark-up
Balance as of 31.12.2023 at the amount of EUR 1 925 014 or BGN 3 765 000
14. MEDIOCREDITO CENTRALE SPA
Contract from 30.06.2018
Borrower: Piombifera Italiana Spa
Maturity date: 08.06.2028
Loan amount: EUR 457 688
Type of loan: working capital
Interest: fixed interest rate
Balance as of 31.12.2023 at the amount of EUR 0 or BGN 0.

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15. STB
Contract from 13.04.2018
Borrower: Societe Nouvelle des Accumulateurs Nour
Maturity date: 30.04.2025
Loan amount: TND 2 500 000
Type of loan: investment
Interest: Reference interest rate (TMM)+mark-up
Balance as of 31.12.2023 at the amount of BGN 360 514
16. STB
Contract from 10.07.2018
Borrower: Societe Nouvelle des Accumulateurs Nour
Maturity date: 31.07.2025
Loan amount: TND 1 250 000
Type of loan: investment
Interest: Reference interest rate (TMM)+mark-up
Balance as of 31.12.2023 at the amount of BGN 240 342
17. STB
Contract from 15.06.2022
Borrower: Societe Nouvelle des Accumulateurs Nour
Maturity date: 15.03.2024
Loan amount: TND 3 700 000
Type of loan: investment
Interest: Reference interest rate (TMM)+mark-up
Balance as of 31.12.2023 at the amount of BGN 2 134 266
18. STB
Contract from 15.06.2022
Borrower: Societe Nouvelle des Accumulateurs Nour
Maturity date: 15.03.2024
Loan amount: TND 4 000 000
Type of loan: working capital
Interest: Reference interest rate (TMM)+mark-up
Balance as of 31.12.2023 at the amount of 2 307 315 BGN.
19. STB
Contract from 13.04.2021 and 10.07.2021
Borrower: Societe Nour Distribution
Loan amount: TND 3 500 000
Type of loan: working capital
Interest: Reference interest rate (TMM)+mark-up
Balance as of 31.12.2023 at the amount of BGN 2 456 998.
20. STB
Contract from 10.07.2021
Borrower: Societe Nour Distribution
Loan amount: TND 2 000 000
Type of loan: receivables discount/advance line
Interest: Reference interest rate (TMM)+mark-up
Balance as of 31.12.2023 at the amount of BGN 1 651 998.

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21. STB
Contract from September 2022
Borrower: Societe Nour Recycling
Maturity date: 2029
Loan amount: TND 7 300 000
Type of loan: investment loan
Interest: Reference interest rate (TMM)+mark-up
Balance as of 31.12.2023 at the amount of BGN 3 634 021
22. STB
Contract from 15.09.2022
Borrower: Societe Nouvelle des Accumulateurs Nour
Maturity date: 15.03.2024
Loan amount: TND 2 300 000
Type of loan: working capital
Interest: Reference interest rate (TMM)+mark-up
Balance as of 31.12.2023 at the amount of BGN 1 326 706.
23. STB
Contract from September 2022
Borrower: Societe Nouvelle des Accumulateurs Nour
Maturity date: September 2027
Loan amount: TND 1 890 000
Type of loan: investment loan
Interest: Reference interest rate (TMM)+mark-up
Balance as of 31.12.2023 at the amount of BGN 576 829
24. STB
Contract from September 2022
Borrower: Societe Nouvelle des Accumulateurs Nour
Maturity date: March 2024
Loan amount: TND 1 333 000
Type of loan: working capital
Interest: Reference interest rate (TMM)+mark-up
Balance as of 31.12.2023 at the amount of BGN 768 586
25. STB
Contract from September 2022
Borrower: Societe Nouvelle des Accumulateurs Nour
Date fo maturity: March 2024
Loan amount 1 000 000 TND
Type of credit: working capital
Interest: Refferenced interest rate (TMM) + mark up
Balance as of 31.12.2023 г.: 255 535 BGN.
26. Others
In addition to the bank borrowings described above, STC S.R.L. utilizes secured and
unsecured short-term and long-term bank borrowings of various types, structures and
maturities, from various banking institutions, amounting to BGN 622 thousand as of 31
December 2023.

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Loan agreements from other financial institutions:
27. UBB Interlease EAD
Contract 0026504/E/30.03.2020
Borrower: Start AD
Maturity date: 30.03.2024
Loan amount: EUR 334 779
Type of loan: credit line
Interest: fixed
Collateral: machinery and equipment for the production of lead-acid batteries
Utilized amount as of 31.12.2023 at the amount of EUR 16 588 or BGN 32 443
28. UBB Interlease EAD
Contract 0026504/D/13.01.2020
Borrower: Start AD
Maturity date: 13.01.2025
Loan amount: EUR 321 557 credit line
Interest: fixed
Collateral: tooling for casting ConCast grids and rectifier systems.
Utilized amount as of 31.12.2023 at the amount of EUR 62 704 or BGN 122 638
29. UBB Interlease EAD
Contract 0026504/H/2021/30.06.2021
Borrower: Start AD
Maturity date: 30.06.2025
Loan amount: EUR 654 584
Type of loan: credit line
Interest: fixed
Collateral: BETTER separator for AGM plates and equipment for it
Utilized amount as of 31.12.2023 at the amount of EUR 200 036 or BGN 391 236
30. UBB Interlease EAD
Contract 0026504/I/2021/21.12.2021
Borrower: Start AD
Maturity date: 20.12.2025
Loan amount: EUR 78 845
Type of loan: credit line
Interest: fixed
Collateral: Check Tester – Short Circuit
Utilized amount as of 31.12.2023 at the amount of EUR 40 750 or BGN 79 701.
31. UBB Interlease EAD
Contract 0026504/L/2022/29.09.2022
Borrower: Start AD
Maturity date: 25.09.2026
Loan amount: EUR 196 297
Type of loan: credit line
Interest: fixed
Collateral: Cutting machine with templates and drum
Utilized amount as of 31.12.2023 at the amount of BGN 108 254 or BGN 211 727.

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32. UBB Interlease EAD
Contract 0026504/N/2022/14.12.2022
Borrower: Start AD
Maturity date: 14.12.2027
Loan amount: EUR 50 990
Type of loan: credit line
Interest: fixed
Collateral: Electrocar, high-lift trucks
Utilized amount as of 31.12.2023 at the amount of EUR 37 635 or BGN 73 608.
33. OTP Leasing EOOD
Contract 85671 /25.10.23
Borrower: Monbat Recycling EAD
Maturity date: 25.10.2027
Loan amount: EUR 775 373
Type of loan: credit line
Interest: fixed
Collateral Concost Line
Utilized amount as of 31.12.2023 at the amount of EUR 760 917 or BGN 1 488 225
34. UBB Interlease EAD
Contract 0026504/O/10.04.2023
Borrower: Start AD
Maturity date: 05.12.2026
Loan amount: EUR 134 200
Type of loan: credit line
Interest: fixed
Collateral Horizontal warming tunnel TO 2000
Utilized amount as of 31.12.2023 at the amount of EUR 120 780 or BGN 236 225.
35. VFS Bulgaria ЕООD
Contract 2274306 from 07.10.2019
Borrower: Monbat Sped EOOD
Maturity date: 16.11.2024
Loan amount: EUR 491 250.
Type of loan: credit line
Interest: fixed
Collateral: 5 pcs. Trucks Volvo
Utilized amount as of 31.12.2023 at the amount of EUR 101 862 or BGN 199 225.
36. VFS Bulgaria ЕООD
Contract 2454239-4 from 05.06.2020
Borrower: Monbat Sped EOOD
Maturity date:16.06.2025
Loan amount: EUR 182 304
Type of loan: credit line
Interest: fixed
Collateral: 2 pcs trucks Volvo and 2pcs. Trailers
Utilized amount as of 31.12.2023 at the amount of EUR 59 710 or BGN 116 782.

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37. VFS Bulgaria ЕООD
Contract 2705097
Borrower: Monbat Sped EOOD
Maturity date:16.06.2025
Loan amount: EUR 104 210
Type of loan: credit line
Interest: fixed
Collateral: Volvo L60H
Utilized amount as of 31.12.2023 at the amount of EUR 44 580 or BGN 87 192.
38. VFS Bulgaria ЕООD
Contract 3098965
Borrower: Monbat Sped EOOD
Maturity date:16.11.2027
Loan amount: EUR 167 220
Type of loan: credit line
Interest: 1M EURIBOR + mark-up
Collateral: 2 pcs. Trucks Volvo
Utilized amount as of 31.12.2023 at the amount of EUR 136 673 or BGN 267 309.
39. VFS Bulgaria ЕООD
Contract 3028975
Borrower: Monbat Sped EOOD
Maturity date: 31.12.2027
Loan amount: EUR 113 400
Type of loan: credit line
Interest: 1M EURIBOR + mark-up
Collateral: 5 pcs. Semitrailers Schmitz
Utilized amount as of 31.12.2023 at the amount of EUR 92 289 or BGN 180 501.
40. VFS Bulgaria ЕООD
Contract 3028965-4
Borrower: Monbat Sped EOOD
Maturity date: 16.02.2028
Loan amount: EUR 83 610
Type of loan: credit line
Interest: 1M EURIBOR + mark-up
Collateral: truck Volvo
Utilized amount as of 31.12.2023 at the amount of EUR 71 031 or BGN 138 924.
41. VFS Bulgaria ЕООD
Contract 3028965-5
Borrower: Monbat Sped EOOD
Maturity date: 16.02.2028
Loan amount: EUR 83 610
Type of loan: credit line
Interest: 1M EURIBOR + mark-up
Collateral: truck Volvo
Utilized amount as of 31.12.2023 at the amount of EUR 71 031 or BGN 138 924.

55
42. VFS Bulgaria ЕООD
Contract 3028965B
Borrower: Monbat Sped EOOD
Maturity date: 16.11.2027
Loan amount: EUR 83 610
Type of loan: credit line
Interest: 1M EURIBOR + mark-up
Collateral: truck Volvo
Utilized amount as of 31.12.2023 at the amount of EUR 71 108 or BGN 139 075.
43. VFS Bulgaria EOOD
Contract. 3149823/13.07.2023
Borrower: Monbat Sped EOOD
Date of maturity : 16.08.2028
Loan amount 66 600 EUR
Type of credit – credit line
Interest: 1M EURIBOR + mark up
Collaterall: 4 .trailers
Utillized amount from 31.12.2023 EUR 62 955 or BGN 123 129.
44. OTP Leasing EOOD
Contract 21941360451
Borrower: Monbat Recycling EAD
Maturity date: 05.06.2027
Loan amount: EUR 518 500
Type of loan: credit line
Interest: fixed
Collateral: Plant for pre-treatment by physical methods of PE separator and production
of ABS mill.
Utilized amount as of 31.12.2023 at the amount of EUR 317 923 or BGN 621 802.
45. UBB Interlease EAD
Contract 17803
Borrower: Monbat Recycling EAD
Maturity date: 31.07.2026
Loan amount: EUR 585 000
Type of loan: credit line
Interest: 3M EURIBOR + mark-up
Collateral: Crystalization system
Utilized amount as of 31.12.2023 at the amount of EUR 524 849 or BGN 1 026 515.
46. OTP Leasing EOOD
Contract 23941384968/13.10.2023
Borrower: Monbat Recycling EAD
Maturity date: 13.10.2028
Loan amount: EUR 852 541
Type of loan: credit line
Interest:: 3M EURIBOR + mark-up
Collateral: Installation for producing tin
Utilized amount as of 31.12.2023 at the amount of EUR 827 779 or BGN 1 618 995

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47. UBB Interlease EAD
Contract 17803 D
Borrower: Monbat Recycling EAD
Maturity date: 06.12.2026
Loan amount: EUR 100 000
Type of loan: credit line
Interest: 3M EURIBOR + mark-up
Collateral: Steam compressor RBS
Utilized amount as of 31.12.2023 at the amount of EUR 90 000 or BGN 176 024
48. Tunisia – car leasing
Contract – 5 pcs from 2022 and 3 pcs from 2023
Borrower: Societe Nouvelle des Accumulateurs Nour
Maturity date: 2026
Loan amount: TND 511 091
Type of loan: leasing
Interest: Reference interest rate
Balance as of 31.12.2023 amounted of BGN 343 999.
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.
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 № 18
As at 31.12.2023 in BGN Thousand 2023 2022
Loan to Monbat Sped EOOD 286 486
Loan to ARTMonbat AD 6 464 4 921
Loan to Holdco Investment EOOD 767 40
Loan to Monbat Trading OOD 2 689 3 276
Loan to Monbat SA Proprietary Ltd - 978
Loan to Torlashka Sreshta EOOD 160 160
Loan to Monbat Eco Project OOD 222 222
Loan to Monbat NBP EAD 1 760 2 700
Loan to Atanas Bobokov 2 369 3 269
Loan to Plamen Bobokov 1 830 1 830
Deposit to Prista Oil Holding EAD 19 751 20 030
Loan to Prista Invest 2016 AD 3 695 3 695
Loan to Advanced Research and Technologies 97 97
Loan to Prista Holdco Cooperatief U.A. 13 -

57
As at 31.12.2023 in BGN Thousand 2023 2022
Loan to Black Star International AD 978 -
Loan to STC Srl 293 -
Loan to Alliance Energy Companies 700 700
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 31.12.2023: 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 31.12.2023 BGN 1 014 thousand
• 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 31.12.2023: BGN 4 774 thousand
Repayment: no repayment schedule
• 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 31.12.2023: 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 31.12.2023: BGN 180 thousand

58
• Contract dated 2023
Loan granted to Black Star International AD
Lender: Monbat Recycling EAD
Utilized principal: BGN 102 thousand
Interest rate: 6.0% annual interest rate
Maturity term: no later than 31.12.2023
Outstanding balance as at 31.12.2023: BGN 102 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
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.

59
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 funds 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
Recyc ling” 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.
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.

60
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
separate financial statement for the financial year, and previously published
forecasts for these results
The Company has not published a forecast for 2023 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
In 2024 the management of MONBAT AD plans to implement an investment
program as follows:
Table № 19
Investment Program 2024, MONBAT AD BGN ('000) EUR ('000)
Capacity increase 1 719 879
Increase in production effectiveness and quality 1 329 679
Improvements of infrastructure 97 50
Development of new products 474 243
Total MONBAT AD 3 619 1 851
Group level projects related to software enhancements 1 145 586
Total investment program 2024 4 764 2 437

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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
separate 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 2023
On 12.7.2023, a change in the composition of the Board of Directors was entered
in the Commercial Register and the Register of Non-Profit Legal Entities, deleting Florian
Huth.
As of at 31.12.2023 - members of the Board of Directors are:
1. Chavdar Danev - Chairman of the Board of Directors
2. Petar Hristov Petrov - member of the Board of Directors
3. Evelina Slavcheva - 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
As of 31 December 2023, the Company was represented by Viktor Stanimirov
Spiriev - Executive Director and Petar Petrov - Procurator.

62
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 2023, the members of the Board of Directors of MONBAT AD received remuneration as
management personnel by MONBAT AD as follows:
Table № 20
Full name Position
Gross
amount in
BGN
Net amount
in BGN
1 Evelina Pavlova Slavcheva Member of the BoD 40 000 36 000
2 Chavdar Dochev Danev Member of the BoD 40 000 36 000
3 Viktor Stanimirov Spiriev Member of the BoD 40 000 36 000
4 Peter Nikolov Bozadzhiev Member of the BoD 40 000 36 000
5 Petar Hristov Petrov Member of the BoD 40 000 36 000
6 Kyle Patrick Anderson Member of the BoD 40 000 36 000
7 Florian Huth Member of the BoD 40 000 36 000
8 Viktor Stanimirov Spiriev Executive Member of the BoD 737 195 655 903
9 Peter Nikolov Bozadzhiev Group Operations Director 481 418 425 704
10 Petar Hristov Petrov Battery Division Director 279 858 244 300
11 Chavdar Dochev Danev Finance Director for Liaison with Financial
Institutions 94 111 84 700
In 2023, the members of the Board of Directors of MONBAT AD received remuneration as
management personnel from subsidiaries of MONBAT AD as follows:
Table № 21
Name Position Gross BGN Net BGN
1 Petar Nikolov Bozadzhiev Monbat Holding GmbH 87 188 87 188
2 Petar Hristov Petrov START AD 76 000 68 400
3 Florian Huth Monbat Holding GmbH 75 550 75 550

63
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 31.12.2023 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.
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.

64
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 occur 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 materials, e.g. lead and polypropylene, are re-used in the production of new
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 31.12.2023 is 430 (2022:
428). As MONBAT AD is a manufacturing entity, focus is kept on employees involved in
the production cycle, providing relevant administrative support.

65
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 Company. 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 look 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
Company 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.
HEALTH MANAGEMENT
Regardless of position, location or age, being healthy and active is considered a
core value within the Company. 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.

66
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.
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 31.12.2023 the share capital of MONBAT AD amounts to BGN 39 000 000,
divided into 39 000 000 ordinary, registered, dematerialized shares with nominal value of

67
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 31.12.2023 the capital structure of MONBAT AD is the following:
Тable № 22
Shareholder Number of
shares
Percentage of
the capital
PRISTA OIL HOLDING EAD, Sofia 16 666 371 42.73%
PRISTA HOLDCO COOPERATIEF U.A. 8 103 758 20.78%
MONBAT TRADING Ltd., Sofia 2 785 650 7.14%
UPF Doverie 2 582 864 6.62%
MUPF Allianz 2 105 403 5.40%
Other individuals and legal entities 6 755 954 17.33%
Own shares (33 545) (0.08%)
Prista Oil Holding EAD indirectly owns 49.88% 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.
………………………………...
29.03.2024
Viktor Spiriev
/ Executive member of the Board of Directors /

68
INFORMATION UNDER ART. 10, Item 4 of ORDINANCE № 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) № 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) № 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 01.01.2023 - 31.12.2023 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
29.03.2024
………………………………...
Viktor Spiriev
/ Executive member of the Board of Directors /

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

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 2023 the activities of the Board of Directors of "Monbat" AD were implemented
in full compliance with the regulatory requirements set out in the Public Offering of
Securities Act 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 31.12.2023:
Chavdar Danev – Chairman of the Board of Directors
Petar Petrov – Member of the Board of Directors
Evelina Slavcheva – 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.

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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.
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 Public Offering of Securities Act 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 Public Offering of Securities Act, 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 2023 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.

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In 2023, the company has consistently complied with Remuneration Policies,
namely:
After the amendments to Ordinance № 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
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 2023 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.

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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 Public
Offering of Securities Act 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.
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.
Pursuant to the Board Member Remuneration Policy, the Company has not granted
any shares, share options or other financial instruments as additional incentives to the
Executive Director.
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 each Member of the Board in the Company
operations and the Company results;

5
• 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 2023, 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 are significant for the long-
term operation of the Company, and the criteria shall be measures for a
period of three years. 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.

6
• 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 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.

7
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:
• 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.

8
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 in the General
Meeting, guided by the established requirements for professional conduct.
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 Public Offering of Securities Act 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.
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.

9
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 Central Depository
AD.
As obvious from 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.
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 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 Meeting.
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 Meeting.
The members of the board of Directors attend the sessions of the General Meeting
of shareholders.

10
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.
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 an explicit resolution of the Board of Directors is necessary, 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 Public Offering of Securities Act,
the Board of Directors prepares a motivated report and initiates convening and holding of
a general meeting of shareholders to vote the transactions. In 2023 such transactions
have not been executed and such procedures have not been performed.

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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 Public Offering of Securities Act 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.
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 Accountancy Act .
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 2023, 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.

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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.
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 Public
Offering of Securities Act 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
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.

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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.
• The personal integrity and professional ethics of management and
staff. The executive member of the company's Board of Directors (CEO) and
those involved in the internal control and risk management process have the
necessary knowledge and skills to perform the tasks required by the process,
which define an individual's job description. The company's CEO monitors the
competency levels for specific jobs and how these levels translate into required
skill and knowledge requisites.
• Management philosophy and management style. The sense of control in
the company is significantly influenced by those charged with general
management. The CEO's responsibilities are set out in the company's articles
of association and management contract. The Board of Directors of the
company is entrusted with the functions of planning, organizing and controlling
the overall activities of the company. In addition, the company's Internal Rules
for Financial Management and Control allocate functions between the Managing
Director and the Chief Accountant in order to operate the procedures for prior
control and for the full, true, accurate and timely accounting of all transactions,
as well as the double signature system.
• An organizational structure that ensures separation of responsibilities,
hierarchy and clear rules, rights, obligations and reporting levels.
Establishing an appropriate organisational structure involves taking into
account key areas of authority and responsibility and appropriate hierarchical
levels of accountability and reporting. The Chief Executive Officer shall assess
the appropriateness of the Company's organizational structure by proposing to
the Company's Board of Directors that such structure be updated to reflect the
size and nature of the Company's operations. In assigning authority and
responsibilities to other officers of the Company, consideration shall be given
to business practices applicable to the sector, the knowledge and experience
of the officers and the resources available within the Company.
• Human resource management policies and practices. In selecting staff,
consideration is given primarily to educational background, previous work
experience, past performance and evidence of integrity and ethical conduct.
This also reflects the Company's commitment to recruit competent and reliable
employees.
• Staff competence. Staff shall carry out their work competently, objectively
and conscientiously, striving to continuously improve their performance in the
interests of the citizen. Employees shall conduct themselves in a manner that
does not bring the Company into disrepute, not only in the performance of their
duties but also in their public and private lives. In the performance of their
duties, employees shall treat everyone with courtesy, manners and respect,
respecting the rights and dignity of the individual and avoiding any form of
discrimination.

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Risk management
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 annual activity report.
Control activities
The Company has appropriate controls in place as required and assessed by risk
assessment and in accordance with regulatory requirements.
Pursuant to the requirements of Article 13 of the FINANCIAL MANAGEMENT AND
CONTROL IN THE PUBLIC SECTOR ACT and in accordance with the Company's internal
rules, control activities are implemented, which include:
• dual signature system;
• rules for access to assets and information;
• policies and procedures for prior control of legality;
• Policies and procedures for ongoing monitoring of financial commitments and
contracts;
• policies and procedures for ex-post performance evaluations;
• policies and procedures for the objective, accurate, complete, reliable and
timely accounting of all business transactions;
• human resources management policies and procedures;
• policies and procedures for maintaining personal integrity and professional
ethics.

15
Information and communication
The information and communication systems developed in the company enable all
officials to perform their duties, ensuring traceability of actions and processes. The
information system essential for financial reporting purposes, which includes the
accounting system, consists of procedures and documentation developed and established
for the purpose of:
• identifying, collecting and disseminating, in an appropriate form and
timeframe, reliable and credible information to enable each official to take
specific responsibility;
• effective communication that flows horizontally and vertically to all
hierarchical levels of the organization;
• making clear and precise instructions and directives available to all staff
regarding their roles and responsibilities in relation to financial management
and control;
• implementation of a documentation and document management system
containing rules for the compilation, formatting, circulation, use and archiving
of documents;
• document all operations, processes and transactions to ensure an adequate
audit trail for traceability and monitoring;
• robust reporting, which includes: levels and timelines for reporting; types of
reports to be submitted to management; forms of reporting when errors,
irregularities, fraud or abuse are detected.
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.

16
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 cross shareholdings) within the meaning of
Article 85 of Directive 2001/34/EC
As of 31.12.2023 the capital structure of MONBAT AD is the following:
Тable № 23
Name of the shareholder Number of
shares
Percentage of
the capital
PRISTA OIL HOLDING AD, Sofia 16 666 371 42.73%
PRISTA HOLDCO COOPERATIEF U.A. 8 103 758 20.78%
MONBAT TRADING Ltd., Sofia 2 785 650 7.14%
UPF Doverie 2 582 864 6,62%
MUPF Allianz 2 105 403 5.40%
Other individuals and legal entities 6 755 954 17.33%
Own shares (33 545) (0.08%)
Prista Oil Holding EAD and Monbat Trading OOD are related parties and together
they hold 49.88 % 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.
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.

17
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 Meeting
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:
Chavdar Danev – Chairman of the Board of Directors
Petar Hristov Petrov – Member of the Board of Directors
Evelina Slavcheva – 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

18
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.
29.03.2024
………………………………………….
Viktor Spiriev
/ Executive member of the Board of Directors /

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 2023
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 real conflict of interests.
The remunerations of the Board of Directors in MONBAT AD for 2023 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 2024.
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 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 2023, 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 BGN 3 000.
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 fulfilment 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 2023 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.

3
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
Company has not adopted a decision for accrual or payment and additional remuneration
of the members of the Board of Directors for 2023.
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 instalments 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
instalments 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.

4
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.
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 2023, the members of the Board of Directors of the Company, the following
remunerations have been paid:

5
Table № 24
Full name Position
Gross
amount in
BGN
Net amount
in BGN
1 Evelina Pavlova Slavcheva Member of the BoD 40 000 36 000
2 Chavdar Dochev Danev Member of the BoD 40 000 36 000
3 Viktor Stanimirov Spiriev Member of the BoD 40 000 36 000
4 Peter Nikolov Bozadzhiev Member of the BoD 40 000 36 000
5 Petar Hristov Petrov Member of the BoD 40 000 36 000
6 Kyle Patrick Anderson Member of the BoD 40 000 36 000
7 Florian Huth Member of the BoD 40 000 36 000
8 Viktor Stanimirov Spiriev Executive Member of the BoD 737 195 655 903
9 Peter Nikolov Bozadzhiev Group Operations Director 481 418 425 704
10 Petar Hristov Petrov Battery Division Director 279 858 244 300
11 Chavdar Dochev Danev Finance Director for Liaison with Financial
Institutions 94 111 84 700
For 2023, 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.
b) the remuneration and other tangible and intangible incentives received by the
person by companies from the same group
In 2023, the members of the Board of Directors of MONBAT AD received remuneration as
management personnel from subsidiaries of MONBAT AD as follows:
Table № 25
Name Position Gross BGN Net BGN
1 Petar Nikolov Bozadzhiev Monbat Holding GmbH 87 188 87 188
2 Petar Hristov Petrov START AD 76 000 68 400
3 Florian Huth Monbat Holding GmbH 75 550 75 550

6
c) remuneration received by the person in the form of profit allocation and/or
bonuses and grounds for allocating them
In 2023, 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 2023 net remuneration for employment with MONBAT AD as a Battery Division Director
to the amount of BGN 312 700.
Petar Bozadzhiev – member of the Board of Directors of MONBAT AD has received
in 2023 net remuneration for employment with MONBAT AD as a Group Operations
Director and Manager of Monbat Holding GmbH to the amount of BGN 512 892.
Chavdar Danev - member of the Board of Directors of MONBAT AD received in 2023
net remuneration for employment with MONBAT AD as Financial Director for relations with
financial institutions to the amount of BGN 84 700.
Florian Huth - member of the Board of Directors of MONBAT AD until 12.07.2023
received in 2023 net remuneration as Manager of Monbat Holding GmbH to the amount of
BGN 75 550.
e) the paid and/or accrued compensation as regards to suspension of his
functions during the last financial year
In 2023 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 2023 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 2023, 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.

7
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 2023 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.
Table № 26
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%
2023 1 017 194 13 041 2 908 000 14 843 645 2 611
Change 2023 to 2022 (%) 4.42% 12.45% 138.56% 12.63% 11.85%

8
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.
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 2023 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 2024, the Board of Directors does not consider it expedient to
determine the values per performance indicators in 2024, in view of receiving additional
variable remuneration.
29.03.2024
………………………………………….
Viktor Spiriev
/ Executive member of the Board of Directors /

iv
DECLARATION
under Art. 100n, para. 4, item 4 of the
PUBLIC OFFERING OF SECURITIES ACT
The undersigned,
1. Viktor Spiriev– Executive member of the Board of Directors of MONBAT AD
2. Petya Belnikolova – Chief accountant of MONBAT AD
DECLARE
that, to the best of our knowledge:
1. The 2023 annual separate 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 2023 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.
29.03.2024
Declarers:
1. Viktor Spiriev
2. Petya Belnikolova

1
Grant Thornton OOD
A 26, Cherni Vrah Blvd, 1421 Sofia
A 111 Knyaz Boris I Blvd., 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
Sofia, 32А, Cherni Vrah Blvd.
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 2023 and the separate statement of profit or loss,
separate statement of comprehensive income, separate statement of changes in equity and separate
statement of cash flows for the year then ended, and notes to the separate financial statements, comprising
material accounting policy information and other explanatory information.
In our opinion, except for the possible effects of the matter described in the “Basis for Qualified Opinion”
section of our report, the accompanying separate financial statements give a true and fair view of the financial
position of the Company as of 31 December 2023, 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
Bulgarian legislation.
Basis for Qualified Opinion
As of 31 December 2023, the Company has overdue trade receivables from Ukrainian counterparties with
carrying value of BGN 7 987 thousand, of which BGN 5 469 thousand are overdue more than two years and
BGN 2 518 thousand are overdue more than one year. No payments have been received as of the date of this
report. We were unable to obtain sufficient appropriate audit evidence regarding the recoverability of these
trade receivables.
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.
Key Audit Matters
Key audit issues are those matters that, in our professional judgment, were of most significance in our audit of the
financial statements of the current period. These matters were addressed in the context of our audit of the separate
financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters. In addition to the matter described in the “Basis for Qualified Opinion” section we have determined the
matters described below to be the key audit matters to be communicated in our report.

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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 2023, the carrying amount of the
receivables from related parties is BGN 87 342
thousand, which is 24% of the total assets of the
Company. Of these, BGN 30 119 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 2023. 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 2024-2028, as well as assessment of the
dividend distribution capacity of Monbat Group,
based on its projected cash flows for the same five-
year period.
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.
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 2024 - 2028 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
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

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(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
2024-2028, 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 separate
activity report, including the corporate governance statement and the report on the implementation of the
remuneration policy prepared by management in accordance with the Accounting Act, Public Offering of
Securities Act and other applicable legal requirements, but does not include the separate financial statements
and our auditor’s report thereon.
Our opinion on the separate financial statements does not cover the other information and we do not express
any form of assurance conclusion thereon. In connection with our audit of the separate financial statements,
our responsibility is to read the other information and, in doing so, consider whether the other information is
materially inconsistent with the separate financial statements or whether our knowledge obtained in the audit
may indicate that there is a material misstatement or otherwise the other information appears to be materially
misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact.
As described in the "Basis for Qualified Opinion" section of this report, we were unable to obtain sufficient
appropriate audit evidence on the matter 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.
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

4
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
scepticism 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 the annual separate activity
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.
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 annual separate activity 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 annual separate activity report is prepared in accordance with the applicable legal requirements;

5
(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 annual
separate 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 the implementation of 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 2023, 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 2023, 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
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 2023, contained in the electronic file “ 213800ZH4VUOQOUVYX93-20231231-BG-

6
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 “213800ZH4VUOQOUVYX93-20231231-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 2023, contained in the attached electronic file
“213800ZH4VUOQOUVYX93-20231231-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) № 537/2014
In accordance with the requirements of Bulgarian Independent Financial Audit Act and in relation with Article
10 of Regulation (ЕС) № 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 2023 by the general meeting of shareholders, held on 29 June
2023, for a period of one year.
− The audit of the separate financial statements of the Company for the year ended on 31 December 2023
of the Company represents fourth, consecutive year of continuous commitment for statutory 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 significant 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 for which we were engaged as statutory auditors, we have not provided any other services
to the Company and its controlled undertakings in addition to the statutory audit.
Mariy Apostolov Silvia Dinova
Managing partner Registered auditor responsible for the audit
Grant Thornton Ltd., registered № 032
Audit firm
29 March 2024
Bulgaria, Sofia, 26, Cherni Vrah Blvd.