The year 2024, shaped by a complex global and local environment, tested our resilience. At the same time, it sharpened our focus and accelerated the transformation we recognised as essential. In response, we committed to a renewed strategy - one rooted in performance, agility, and long-term value creation. This new direction is guided by clear, measurable objectives: by 2028, we are targeting an annual growth of 6% in the unitary net asset value and a reduction of at least 7% in the trading discount. These are more than just targets—they are key milestones in our journey to unlock the full potential of our portfolio.

In finance, perhaps more than in any other field, evolution is rarely linear. It is a journey of adaptation, discipline, and resilience. We evolve by remaining rational and by taking ownerhip of both our successes and our challenges. As we move forward, we are committed to reaching higher standards, including in our role as your trusted financial partner. That means continuing to prioritize transparency, strategic discipline, and operational efficiency.

We are also by our investors' side through the remuneration mix proposed to them. Thus, the Company proposes to distribute a dividend of RON 0.0150/share for 2024, which represents 67% of the net profit for 2024 and to carry out approved share buyback programs, aimed at maximizing the aggregate return for investors.

We remain fully committed to delivering results that reinforce investor confidence. We look ahead to 2025 with optimism— confident in the strength of our solid, well-balanced portfolio supported by optimal liquidity and managed by a team of dedicated professionals ready to deliver.

We extend our gratitude to our partners and collaborators, as well as to all those who believe in the vision and leadership of Transilvania Investments' management team and support us on this journey.

With special consideration,

Marius-Adrian Moldovan, Executive President

FOR THE FINANCIAL YEAR ENDED ON 31 DECEMBER 2024

Annual Report drafted according to the Law No. 24/2017 regarding the issuers of financial instruments and market operations , the F.S.A. Regulation no. 5/2018 regarding the issuers of financial instruments and market operations , Law no. 74/2015 on alternative investment fund managers , Law no. 243/2019 regulating alternative investment funds and the F.S.A. regulations issued for the enforcement thereof, Regulation (EU) no. 231/2013, the Bucharest Stock Exchange Rule Book, Accounting Law no. 82/1991, republished as subsequently amended and supplemented, F.S.A. Rule no. 39/2015 approving the Accounting Regulations compliant with the International Financial Reporting Standards, applicable to the entities authorised, regulated and supervised by the Financial Supervisory Authority from the Financial Instruments and Investments Sector .

Report date: 31.12.2024

Through the nature of its activities, Transilvania Investments aligns with both the economic and legislative context in Romania, as well as the regional and global macroeconomic dynamics. A series of events recorded in 2024 had a direct or indirect impact on the Company's results and performance.

1.1 General Macroeconomic Context

The year 2024 was marked by a slowdown in global economic growth, driven by restrictive monetary policies, persistent inflationary pressures, and geopolitical uncertainties. According to the International Monetary Fund (IMF), the global economy recorded a growth rate of 3.2%, maintaining a level similar to that of 2023. In advanced economies, economic activity stagnated, with stronger performance in the U.S., where GDP grew by 2.8%, supported by private consumption. In contrast, the eurozone experienced slower economic growth, impacted by high energy costs and declining external demand. China continued to face economic slowdown, while emerging economies recorded moderate growth of 4.2%, slightly below the previous year's level.

In Romania, the economy grew below expectations, with real GDP advancing by 1.4% in 2024, compared to 2.4% in 2023. In the first half of the year, private consumption supported domestic demand, but in the second half, the effects of the economic slowdown in Europe became more evident, impacting exports and contributing to a persistently high trade deficit. Inflation remained above 5% throughout the year, driven by rising food and energy prices, as well as wage increases in the public sector.

The budget deficit continued to deepen, reaching 8.65% of GDP in 2024, putting additional pressure on public finances. Public debt increased to 54% of GDP, with prospects of exceeding the 60% threshold in the coming years. This context sustained the risk of negative revisions to the country's credit rating, given the lack of clear fiscal consolidation measures.

On the political front, 2024 was a complex electoral year, with four rounds of elections: local, European Parliament, parliamentary, and presidential. The June elections confirmed the dominance of the PSD-PNL coalition, but the autumn elections highlighted the rise of extremist parties and a fragmentation of the political spectrum. The parliamentary elections on December 1 led to the governing coalition losing its majority, increasing uncertainties regarding future economic policies.

The National Bank of Romania lowered the monetary policy interest rate twice in 2024, from 7% to 6.75% in July and subsequently to 6.50% in August, maintaining this level until the end of the year. This strategy reflected the need to balance economic growth support with inflation control, as the annual inflation rate declined to 5.1% in December. Long-term government bond yields fluctuated significantly, influenced both by investor perceptions of sovereign risk and by international trends in monetary policy, including expectations of potential monetary easing in 2025 by major central banks.

In conclusion, 2024 was a year of economic and political transition, marked by modest economic growth, high inflation, fiscal pressures, and significant uncertainties. In this context, companies and investors faced a volatile business environment, requiring a cautious approach and effective management of macroeconomic risks

1.2 Economic Growth Prospects. Key Risks and Vulnerabilities of the Financial System

In 2025, Romania's economy is expected to experience a slight recovery, with a projected growth rate between 2.0% and 2.5%, driven by supporting factors but also facing significant risks. In the medium term, economic performance will depend on the government's ability to implement fiscal and structural reforms, the absorption of EU funds, and the stability of the external environment.

One of the main drivers of growth is the absorption of European funds, particularly through the National Recovery and Resilience Plan (PNRR) and the 2021-2027 Multiannual Financial Framework. Public

Private consumption will continue to play a central role in economic growth, supported by wage increases, including those in the public sector, and pension adjustments. Although inflation remained above 5% in 2024, a potential decline below this threshold in 2025 could improve household purchasing power and, consequently, boost domestic demand. On the other hand, a potential increase in taxation or VAT could constrain consumption growth and place additional pressure on disposable incomes.

The National Bank of Romania is expected to maintain a prudent monetary policy, with the possibility of key interest rate cuts in the second half of 2025 as inflation stabilizes. Such a measure could support lending and private investments, particularly in the consumer and real estate sectors. Long-term government bond yields will continue to be influenced by investor perceptions of sovereign risk and international trends in the monetary policies of major central banks.

Romanian exports could benefit from a stabilization of external demand, especially if eurozone economies return to a growth trajectory. Additionally, attracting foreign direct investments in sectors such as technology, automotive, and renewable energy will play a crucial role in medium-term economic growth. However, international financial market volatility, high energy prices, and geopolitical tensions in the region remain risk factors that could negatively impact Romania’s economic outlook.

The high budget deficit and rising public debt will remain major challenges in 2025. In 2024, the budget deficit reached 8% of GDP, far exceeding the 3% threshold set by the EU Stability and Growth Pact. Without the implementation of fiscal consolidation measures, Romania risks severe macroeconomic corrections and potential downgrades to its credit rating. Public debt has risen to over 52% of GDP and is projected to exceed the 60% threshold in the coming years, increasing financing costs and potentially limiting fiscal space for investments.

Another major risk is political instability, exacerbated by the results of the December 2024 parliamentary elections, which led to a fragmented political landscape and difficulties in forming a stable majority. The lack of consensus on fiscal and economic measures could delay essential reforms and undermine investor confidence. Additionally, any delays in implementing the reforms committed under the National Recovery and Resilience Plan (PNRR) could result in the suspension of EU funding tranches, negatively impacting investment prospects and economic development.

In 2025, Romania's economy has growth potential, but it operates in an environment marked by significant risks. European funds, investments, and private consumption could provide economic momentum, yet the high budget deficit, political uncertainties, and external risks will remain major challenges. The government's ability to implement sustainable fiscal reforms and attract investments will be crucial in shaping medium-term growth prospects.

1.3 Romanian Capital Market Context

Throughout 2024, the Romanian capital market continued to record positive developments, with the BET- TR index registering an appreciation of approximately 16.85% compared to the same period of the previous year. This performance was supported by the strong financial results reported by most listed companies, as well as an attractive dividend distribution policy. The dividend yield remained at a competitive level of around 7.9%, further strengthening investor interest in assets listed on the Bucharest Stock Exchange (BVB).

A significant milestone for the local capital market was the listing of the first ETF (Exchange Traded Fund) tracking the performance of the BET-TRN index, launched by InterCapital Asset Management, the largest independent investment manager in Croatia, with over €500 million in assets under management. This

Regarding market liquidity, the total trading value of all financial instruments on the Bucharest Stock Exchange (BVB) Regulated Market declined compared to 2023, primarily due to the exceptional volumes recorded in the previous year following the listing of Hidroelectrica, the largest IPO in the history of the Romanian stock exchange. Nevertheless, investor interest in listed companies remained high, supported by stable dividend yields and favourable prospects for key economic sectors.

Amid a year marked by significant political and economic events, the Romanian capital market maintained its attractiveness, demonstrating resilience and growth potential, in line with the positive trends observed in other emerging international markets. In 2024, the performance of stocks listed on the regulated market, compared to the previous financial year, highlighted the following key aspects:

⇨ Compared to the same period of the previous year, the total trading value on the regulated segment of the Bucharest Stock Exchange (B.S.E.) recorded a lower aggregate level;

⇨ At the end of 2024, the market capitalisation of the regulated was 35.7% higher compared to the same period of the previous year (YoY change).

Source: Bucharest Stock Exchange

Since the beginning of 2024, the evolution recorded by the main index of the regulated market (BET TOTAL RETURN -calculated in local currency, includes dividends) has been positive, registering an increase of 17.22%. We notice the widening gap between the evolution of the local index and the evolution of the MSCI Frontier Markets, resulting in an outperformance of the local market.

Source: Bloomberg

2. EVOLUTION OF TRANSI SHARES IN 2024

During 2024, the TRANSI shares had an evolution characterized by the following trading benchmarks:

⇨ minimum closing price RON 0.2850/share

⇨ average price RON 0.3460 /share

RON 0.3449 /share, if DEAL transactions are not considered

⇨ maximum closing price RON 0.3820 /share

⇨ trading volume 170.86 million shares

162.21 million shares, if DEAL transactions are not considered

⇨ number of trading sessions 248 sessions

⇨ daily average trading volume 0.689 million shares /session

0.654 million shares /session, if DEAL transactions are not considered

Note: prices not adjusted by the dividend distributed during the period.

Source: Bloomberg

In 2024, the average daily liquidity with TRANSI shares increased to 648,821 shares compared to the average value recorded in 2023, of 258,969 shares. Throughout 2024, we see an improvement in liquidity compared to the previous year, with a positive dynamic of +151%. The chart below highlights the average daily traded volume and median from January 2023 to December 2024.

Evolution of TRANSI shares’ trading discount during the last 12 months

Source: Transilvania Investments

The trading discount had a positive evolution, decreasing from 59% at the end of December 2023 to 56% at the end of December 2024.

Starting with March 14, 2024, Transilvania Investments benefits from the Issuer's Market Maker services offered by BRK Financial Group, to improve the liquidity of the shares issued by the Company.

Analysis of TRANSI shares’ trading discount at 31.12.2024

Source: Transilvania Investments

By reference to the Net Asset Value per Share reported for the reference date 31.12.2024, the price of TRANSI shares registers a significant discount of 56%. At the same time, the price of TRANSI shares registered a significant discount in relation to the Top 10 holdings in the portfolio (including cash and equivalents), namely 41%.

3. ANALYSIS OF THE COMPANY’S ACTIVITY

3.1 General framework

Transilvania Investments is an Alternative Investment Fund Manager (A.I.F.M.), authorized by the F.S.A. (Authorization no. 40/15.02.2018), which operates according to the provisions of Law no. 74/2015 on alternative investment fund managers. At the same time, the Company is authorized as a closed-end Retail Investor Alternative Investment Fund (R.I.A.I.F.), diversified, established as an investment company, self- managed, according to the provisions of Law no. 243/2019 on the regulation of alternative investment funds (F.S.A. Authorization no. 150/09.07.2021).

Transilvania Investments is a Romanian legal entity organised as a joint stock company. The Company is listed on the Bucharest Stock Exchange, on the Main segment, within the Premium category, under TRANSI symbol, the trading of the shares issued by the Company being subject to the rules applicable to regulated market and closed-end alternative investment funds.

The Company manages an investment portfolio which has a predominant exposure on the Romanian capital market, mainly on shares of listed companies from Banks, Travel and leisure, Real Estate, Financial services and Energy sectors. The managed portfolio may include, without limitation thereof, any of the following main classes of financial instruments/assets: shares, fixed-income instruments, fund units/ETFs, equity

The structure of the portfolio managed by the Company complies with the investment limitations undertaken through the risk profile and the status of Retail Investor Alternative Investment Fund, and it therefore remains focused on shares listed on the Romanian capital market.

3.2 Strategy and objectives

In accordance with the Transilvania Investments’ 2024-2028 Strategy, approved through the Resolution of the Ordinary General Meeting of Shareholders of 22.04.2024 , the investment strategy of the Company consists in the maximization of the aggregate returns obtained by its current and potential shareholders, through the investments carried out by the Company, and the increase in the net asset value per share .

The investment policy of the Company seeks the insurance of the portfolio quality through carrying-on the accelerated restructuring thereof, structural balancing of the portfolio, insurance of an optimal level of the portfolio aggregate liquidity and promotion of efficient and attractive shareholder remuneration instruments, and the proper management of the financial resources needed to implement such instruments.

Moreover, the 2024-2928 Strategy established the new business lines , namely travel and leisure, real estate, active trading and private equity , the main lines of action being the following :

• Travel and leisure → changing/consolidating the management and business models for the sub- portfolio of companies operating in the tourism sector. In order to increase the performance of companies from this sector, agreements for specialized operating services and/or operation under international brands can also be considered.

• Real estate → efficient and centralized operating of the real-estate portfolios, including the assets held by companies operating in the industry sector where the risk-adjusted profitability of the industrial activity is lower than the estimated efficiency of operation as a real-estate vehicle.

• Active trading → includes the strategy afferent to issuers actively traded on financial markets, with high liquidity, regardless of the trading environment (local or international) with the view of maintaining an adequate liquidity level profile of the managed portfolio and targets both short and longer investment horizons.

• Private equity → developing and efficiently capitalizing on the potential offered by the niche of private equity investments, both in new sectors and by a private equity approach for the assets in the existing portfolio. The private equity investments and participation in entrepreneurial projects create the premises for the increase in the profitability of the assets managed and have the purpose of mitigating the negative performances recorded on the capital market.

In addition, the 2024-2028 Strategy set the main objectives for the period 30.04.2024-30.04.2028 , such as an annual increase in the net asset value per share by at least 6% (increase calculated before any distribution of dividends and/or other shareholder remuneration forms) and annual reduction of the trading discount by at least 7%, shareholder remuneration through a mix of instruments (dividends and reduction of the trading discount), restructuring the historical portfolio, increasing the weight of dividends generated by subsidiaries, maintaining the portfolio medium risk profile and the investment entity status etc.

The evolution of the two multiannual performance indicators (K.P.I.) from the start date of the above- mentioned Strategy (30.04.2024) until 31.12.2024 was the following:

➢ Annual increase in the net asset value per share (NAVPS) → 2.48% increase ( compared to the 2024 year-end target of 4.00% )

➢ Annual reduction of the trading discount – 11.12% reduction ( compared to the 2024 year-end target of 4.67%).

3.3. Investment entity

Transilvania Investments applies the IFRS standards as the accounting base, in compliance with the requirements of the F.S.A. Rule no. 39/2015 for the approval of the accounting regulations compliant with International Financial Reporting Standards, applicable to the entities authorized, regulated and supervised by the Financial Supervisory Authority from the financial instruments and investments sector.

IFRS 10.4 sets out certain exceptions with respect to the preparation of consolidated financial statements, among which the exception applicable to parent companies which are classified as “investment entities”. As a result of the analyses carried out, Transilvania Investments’ management found that the Company met the requirements of the definition of an “investment entity” in compliance with IFRS 10, respectively the Company:

i. obtains funds from one or more investors for the purpose of providing those investors with investment management services;

ii. commits to its investors that its business purpose is to invest funds solely for returns from capital appreciation, investment income, or both, and

iii. measures and evaluates the performance of substantially all its investments on a fair value basis.

Under these circumstances, Transilvania Investments prepares a single set of financial statements, respectively separate financial statements in accordance with IFRS.

Starting 1 January 2015, the Company’s financial investments are measured at fair value. In the light of IFRS 9, starting 1 January 2018, Transilvania Investments classified its investments in subsidiaries and associated entities, the bonds and the fund units as financial instruments measured at fair value through profit or loss. The Company’s investments in other equity instruments (other than subsidiaries and associated entities) are classified as financial assets at fair value through other comprehensive income and/or as financial assets at fair value through profit or loss.

Transilvania Investments directly provides investment management services for its investors, having as its main and exclusive business scope activities specific to closed-end investment companies. Transilvania Investments does not provide investment related consultancy and administrative services, directly or indirectly through a subsidiary, to third parties and/or its investors.

The Company applies an exit strategy based on the permanent monitoring of its investments, analysis of the current market developments, achievement of higher yields and fulfilment of the objectives set under the annual revenue and expenditure budgets.

Transilvania Investments presents its strategy to its current and potential investors based on specific documents approved by the General Meeting of Shareholders, namely the Company’s Strategy and Investment Policy Statement.

The Company is authorized by the Financial Supervisory Authority as a Retail Investor Alternative Investment Fund (R.I.A.I.F.). The Company’s operation in the capacity of a R.I.A.I.F., of closed-end type, diversified, set-up as an investment company, self-managed, is based on a series of rules regarding the risk profile, investment exposure limits, measurement of the portfolio financial assets and their presentation in the Company’s net asset value, transparency and reporting requirements.

Transilvania Investments monitors the structure and performance of its investment portfolio and:

i. publishes monthly the statement of assets and liabilities, namely reports regarding the net asset value and net asset value per share, calculated by the company and certified by the depository (Annex no. 10 to the F.S.A. Regulation no. 7/2020), together with the statement of assets for which valuation methods compliant with the international standards and fair value principle were considered (Annex prepared according to Article 38, paragraph (4) of Law no. 243/2019);

ii. calculates monthly and publishes on a quarterly, half-yearly and yearly basis the detailed statement of investments (Annex no. 11 to the F.S.A. Regulation no. 7/2020), at the deadlines provided by the applicable legislation for the publishing of the quarterly, half-yearly and yearly reports).

3.4 Financial assets at fair value

According to IFRS 13, the fair value levels, depending on the input data used in the measurement process, are defined as follows:

▪ Level 1 input data are quoted prices (unadjusted) in active markets for identical assets and liabilities that the entity can access on the measurement date;

▪ Level 2 input data are input data, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly;

▪ Level 3 input data are unobservable input data for the asset or liability .

Establishing the materiality threshold of the input data used in the process of fair value measurement, in its entirety, requires the use of professional judgment, considering the specific factors, because of the complexity implied by the measurement of these investments and the presentation of the fair value changes in the financial statements. The fair value measurement of the financial instruments held by Transilvania Investments is carried out in compliance with the fund’s policy and rules regarding the asset valuation, the internal procedure and the related methodology.

Under the general concept and according to the rules defined at the level of the fund by its authorisation as a R.I.A.I.F., it was considered that the shares held in issuers listed on an alternative/multilateral system in Romania should be assimilated to securities with a liquidity considered to be irrelevant for the application of the mark-to-market method, the option being that the shares of such companies to be valuated based on a valuation report in accordance with the valuation standards in force. For the companies listed on the main segment of Bucharest Stock Exchange, usually, the trading activity of the shares concerned is considered relevant to apply the mark-to-market method. In specific situations, which do not fall within the general coordinates mentioned above, a prudent judgement is considered with regard to quantitative and/or qualitative aspects of the market and trading activity of the issuer's securities.

In the context of the above and the provisions of art. 114 - (5) of the F.S.A. Regulation no. 9/2014, we mention the following aspects relating to the issuers in the portfolio held as at 31 December 2024 for which the valuation was not carried out on a mark-to-market basis:

• within the share portfolio held by Transilvania Investments as at 31 December 2024, for issuers whose shares are admitted to the multilateral trading system of the Bucharest Stock Exchange and traded within a 30 business days period prior to 31 December 2024, presented in the table below, the option of estimating the value based on a valuation report has been maintained;

• the analysis of the information on issuers’ characteristics and the trading activity of the shares of the respective issuers highlighted a number of aspects and elements that could not be considered relevant for the use of the mark-to-market method ;

• the summary data of some trading indicators or parameters for a 12-month period prior to 2024 highlights: the dominant, control or significant position held by Transilvania Investments as shareholder in the companies, shareholding structures with a high degree of stake concentration which results in a generally low free-float, low number of trading sessions for those companies in the context

of the annual trading programme of the B.S.E. or compared to issuers traded in the same segment for which the mark-to-market method was used, certain trading discontinuities resulting from time intervals without transactions, low volumes traded compared to the total number of shares of the issuers and/or stakes of Transilvania Investments, low average number of trades in a trading session, lack of presence of the issuers in the composition of some stock indices etc.

By reference to the internal regulations of the company and the portfolio of managed assets whose values are classified on level 3 of the fair value hierarchy, in 2024, the valuation activity was performed internally and in collaboration with third parties, based on services contract for drafting valuation reports, in the context of the legislative framework and the Valuation Standards in force. Transilvania Investments contracted the services of nationally recognized entities- PricewaterhouseCoopers Management Consultants and Darian Drs, corporate members of ANEVAR and qualified providers of specialised valuation services that meet specific legislative requirements (independence, skills, experience, qualified staff, etc.) for the drafting of valuation reports for the purpose of estimating the fair value of certain stakes in the managed portfolio.

At 31.12.2024, Transilvania Investments holds in portfolio financial assets measured at fair value, classified on the three fair value levels, as follows:

3.5 Main aspects of the portfolio evolution in 2024

❖ the total assets value increased by 5.64% (yoy);

❖ the net asset value had a similar evolution, recording a 5.65% increase .

Evolution and components of Transilvania Investments portfolio