I.2. Approval of distribution of 2022 net profit, setting of the gross dividend per share and payment term

Distribution of the 2022 net profit, reported on the basis of the audited annual financial statements, is based on the following legal requirements:

-      G.O. no. 64/2001 on the distribution of profit in the national societies, national companies and trading companies with full or majority state capital, as well as in the autonomous administrations, with the subsequent amendments and additions;

-      Law no. 31/1990 on trading companies, with the subsequent amendments and additions;

-      Law no. 227/2015 on the Fiscal Code, with the subsequent amendments and additions;

-      Law no. 24/2017 on issuers of financial instruments and market operations;

-      Decision of the Ordinary General Meeting of Shareholders no. 1 of 28.02.2022 on the approval of the 2022 Income & Expenditure Budget of the trading company Antibiotice S.A. Iasi.

Net profit of the financial year 2022, reported on the basis of the audited annual financial statements, amounted to 38,513,427 lei, distributed according to legal requirements:

Other reserves amounting to 33,194,927 lei are established according to art. 22, para. 5 of Law no. 227/2015 on the Fiscal Code, with the subsequent amendments and additions:  "The amount of profit for which the company benefited from the profit tax exemption, [...], is distributed at the end of the financial year or during the following year, with priority for the establishment of reserves, which should not exceed the accounting profit recorded at the end of the financial year", from which:

Ø  30,523,566 lei, represent tax facilities for the profit invested in technological equipment, electronic computers and peripheral equipment, [...], as well as in computer programs produced and/or purchased according to art. 22, para. 5 of Law no. 227/2015 on the Fiscal code;

Ø  2,671,361 lei, represent tax facilities for research & development activities according to art.20 of Law no. 227/2015 on the Fiscal code.

The difference of 5,318,500 lei from the 2022 net profit is divided into dividends proportional to the participation rate in the share capital, as follows:

Value of the gross dividend per share of 0,00792224 lei/share was calculated by corroborating the value of 5,318,500 lei (the dividends due to the shareholders, according to the proposal for distributing the 2022 net result) with 671,338,040 shares representing the subscribed and paid-up capital.

The payment of dividends for 2022 will be made starting from 02.10.2023, according to the legal provisions in force. We mention that the dividend payment value is calculated by rounding to two decimal places.

The tax on dividends will be calculated and withheld by Antibiotice S.A. in accordance with the requirements of Law no. 227/2015 on the Fiscal Code.

          GENERAL DIRECTOR                                                  FINANCIAL DIRECTOR

         Ioan NANI, Economist                                                  Paula COMAN, Economist