Auditor’s report on the audit of the consolidated financial statements of RESBUD SE for 2021

Auditor’s report on the audit of the consolidated financial statements of RESBUD SE for 2021

Legal basis – Article 17 (1) MAR – confidential information.

The Management Board of RESBUD SE (the „Company”, the „Issuer”) informs that on October 6, 2022, it received the auditor’s report on the consolidated financial statements of RESBUD SE Group for 2021, in which the auditor – KPMG Baltics OÜ, based in Tallinn (the „Auditor”), declined to issue an audit opinion on the consolidated financial statements of RESBUD SE and its subsidiaries, consisting of the consolidated statement of financial position as of December 31, 2021. and the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of cash flows and the consolidated statement of changes in equity for the year then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies.

The auditor, as a justification for refusing to issue an audit opinion on all of the above-mentioned financial statements, indicated the importance of the matters described in the section of the report titled Basis for Refusal of Opinion, based on which, he stated, he was unable to obtain sufficient and appropriate audit evidence to form the basis for an audit opinion on these consolidated financial statements. The detailed auditor’s report on the audit of the consolidated financial statements of RESBUD SE is attached hereto.

In response to the sent document, the Management Board of RESBUD SE sent to the Auditor the Issuer’s Position relating to the presented reasons for refusing to issue an opinion, considering them unjustified and partly even inconsistent with the facts disclosed during the audit process. In the Company’s opinion, supported by the opinions of specialists involved in the process of preparing the consolidated financial statements of RESBUD SE and its subsidiaries, a number of allegations by the auditor are not supported by any specific examples, limiting themselves to general statements that the Company may challenge by pointing to specific data or explanations sent.

The Company’s Management Board will take the measures prescribed by law to clarify the grounds for the Auditor’s refusal to issue an opinion, all the more so taking into account the fact that the same auditor in April 2022 issued a positive opinion on the audit of the consolidated condensed financial statements of RESBUD SE for the period of 9 months 2021.

The situation does not affect the continuation of operations of the group companies and the implementation of the development policy adopted by the RESBUD SE Group.