EFFECTIVENESS IN WAR CONDITIONS

In conditions of war and a situation of daily shelling, enemy UAV (unmannedaerial vehicles) hits and ballistics on production bases, objectively reinforced bycritically limited funding from the State, the road repair teams of the regional roadmaintenance departments of JSC “State Joint Stock Company “Automobile Roads ofUkraine” continue to provide operational maintenance of public roads of state andlocal importance on a daily basis.

At the same time, taking into account the difficult situation that has developed inrecent years with the Company’s subsidiaries (SE) and the artificial driving of mostof them to bankruptcy or reorganization, which:

– prevented them from carrying out full-fledged economic activities andparticipating in tenders for the performance of works on the operationalmaintenance of national roads;

– significantly reduced the Company’s overall subjectivity in the road worksmarket in favor of private companies.

The Company’s management implemented a number of systemic managementmeasures over the past year (from July 2025 to July 2026), which allowed mostenterprises that are in bankruptcy to become operationally profitable and resumeoperations on the roads of Ukraine.

In the process of systemic revival of the activities of regional road transport operators and JSC “State Joint Stock Company “Automobile Roads of Ukraine”, 2 key goals were identified for the current year – to ensure:

1. revenue growth of 60%;

2. stable profitability of operations and payment, at the end of the year, of dividends to the State – which have not been paid for more than 15 years.

According to operational information, as of August 1, 2026, within the framework of the formation of consolidated reporting of SEs included in the structure of the State Joint Stock Company, the Company demonstrates an actual increase in the profitability of conducting business activities due to an increase in the operating income of the majority of operating SEs.

If, according to the financial statements of the State Enterprise for the first half of 2025, the Company’s net income (according to IFRS) amounted to UAH 907 million, then according to the results of the 6 months of the current 2026, it actually amounted to UAH 1,490 million. Accordingly, the growth in net income compared to the same period last year increased by UAH 583 million, 164.

– It should also be noted that the financial plan for 2026 previously envisagedreceiving net income in the amount of UAH 752 million for the first half of2026. Accordingly, the indicator of actually received income in the amount ofUAH 1,490 million exceeded the planned amount by UAH 738 million, or wasfulfilled by 198%.

The largest income in the first half of 2026 was received from the implementationof road works and amounted to UAH 1,399 million. Income was also received

– 42 million UAH – sales of own products;

– UAH 36 million – related activities (property rental, provision of generalcontractor services, etc.);

– UAH 13 million – services for motor transport and road machinery.

As for the separate additional income from leasing property that is not used inproduction activities, providing parking, accommodation and storage services, itactually amounts to UAH 93 million in the first half of the year – which is UAH 5 million more than in the same period last year.

Receiving significant operating income allows the enterprises of JSC “State Joint-Stock Company “Automobile Roads of Ukraine” to gradually cover the accumulated debt for wages, taxes and fees over the past years, to repair special equipment and vehicles for operational maintenance of highways of local and state importance – so that they, as the most significant part of the country’s transport infrastructure today, are always able to provide the needs of military and civilian logistics and the economic stability of Ukraine as a whole!