Purcari Wineries Public : Raport anual 2021

Purcari Wineries Public

Company Limited

Report and Consolidated

Financial Statements

For the year ended 31 December 2021

Purcari Wineries Public Company Limited
Consolidated Financial Statements for the year ended 31 December 2021
all amounts are in RON, unless stated otherwise
Contents
Board of Directors and other officers	1
Declaration of the Members of the Board of Directors and the person responsible for
the preparation of the annual consolidated financial statements of the Company	2
Consolidated Management Report	3 - 42
Independent Auditors' Report	43 - 49
Consolidated Statement of Financial Position	50
Consolidated Statement of Profit or Loss and Other Comprehensive Income	51
Consolidated Statement of Cash Flows	52
Consolidated Statement of Changes in Equity	53
Notes to the Consolidated Financial Statements	54 - 102

Purcari Wineries Public Company Limited Board of Directors and other officers all amounts are in RON, unless stated otherwise

Board of Directors and other Officers

Board of Directors:Name

Monica Cadogan

Date of appointment Listing date (first appointment),

re-appointed by the AGM on 28 April 2021

Title

Non-executive, Independent Director

Listing date (first appointment),

Vasile Tofan

re-appointed by the AGM on 29 April 2020

Non-executive Director

Neil McGregor

Listing date (first appointment),

re-appointed by the AGM on 25 April 2019

Non-executive, Independent Director

Victor Bostan

Listing date

Executive Director

Eugen Comendant

Elected by the AGM on 29 April 2020

Executive Director

Chairman of the Board of Directors:	Vasile Tofan, firstly elected by the Board of Directors to this position
on 14 June 2018 and re-elected by the Board on 14 May 2021
Company Secretary:	Inter Jura CY (Services) Limited
Independent Auditors:	KPMG Limited
14, Esperidon Street
1087 Nicosia
Cyprus
Registered office:	1, Lampousas Street
1095 Nicosia
Cyprus
Registration number:	HE201949

1

Declaration of the Members of the Board of Directors and the person responsible for the preparation of the consolidated financial statements of the Company all amounts are in RON, unless stated otherwise

Declaration of the Members of the Board of Directors and the person responsible for the preparation of the annual consolidated financial statements of the Company

In accordance with Section 9 sub-sections (3)(c) and (7) of the Transparency Requirements (Securities Admitted to Trading on a Regulated Market) Law of 2007 as amended (the "Law"), We, the members of the Board of Directors and the other responsible persons for the consolidated financial statements ofPurcari Wineries Public Company Limited (the "Company") for the year ended 31 December 2021, confinn that, to the best of our knowledge:

(a)

the annual consolidated financial statements which are presented in this Annual Report on pages 50 to 102:

(i) have been prepared in accordance with the applicable International Financial Reporting Standards as adopted by the European Union and in accordance with the provisions of Section 9, sub-section (4) of the Law, and

(ii) give a true and fair view of the assets, liabilities, the financial position and the profit or loss of Purcari Wineries Public Company Limited and the undertakings included in the consolidated accounts taken as a whole, and

(b)

the Consolidated Management Report provides a fair view of the development and the performance of the business as together with a description of the principal risks and uncertainties that they face.

Members of the Board of Directors:

I

Vasile Tofan

Non-executive Director

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Monica Cadogan

Non-executive, Independent Director

Neil McGregor

Non-executive, Independent Director

Vietor Bostan

Executive Director

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Eugen Comendant

Executive Director

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Person responsible for the preparation of the annual consolidated financial statements of the Company:

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Victor Arapan

Chief Financial Officer

5 April 2022

2

Consolidated Management Report for the year ended 31 December 2021 all amounts are in RON, unless stated otherwise

CONSOLIDATED MANAGEMENT REPORT

1.

CORPORATE INFORMATION

Purcari Wineries Plc ("Purcari", "Group", or "Company) is one of the largest wine groups in the Central and Eastern Europe (CEE) region. The Group manages circa 1,300 hectares of vineyards and operates four production platforms in Romania and Moldova, three of which are dedicated to wine production using grapes from own vineyards and from third-party suppliers and one dedicated to brandy production. In December 2021, the Group had over 700 employees in its four production platforms.

The Group is the leader in the premium wine segment in Romania1, with a circa 30% segment share, and the largest wine exporter from Moldova, delivering to over 40 countries in Europe (Poland, Czech Republic, Slovakia, Ukraine, Scandinavian countries, UK, etc.), in Asia (China, Japan, South Korea) and in America (Canada and USA).

Founded in 1827, Purcari is the most awarded winery from the CEE region at Decanter London 2015-2021 and among the highest ranked on Vivino, with an average score of 4.1 based on over 65,000 reviews.

The Group has 5 wine brand-platforms with products in a wide range of price segments, both in the still and sparkling wine categories, as well as a brand in the popular premium brandy segment:

• • Premium wine: Purcari ("True values don't change with time. Since 1827.") is the Group's flagship brand, dating back to 1827. It achieved its first international success in 1878, winning the gold medal at the Paris World Exhibition with Negru de Purcari. The Group holds the title of the most awarded CEE winery at Decanter London between 2015 and 2021 with 103 medals. Purcari Winery is the world's most awarded winery with 333 medals won at the most notorious international contests: Decanter World Wine Awards, Concours Mondial de Bruxelles, Mundus Vini Spring Tasting, Citadelles du Vin, Eurasia Wine & Spirits, Concours International de Lyon, Berliner

  Wine Trophy, London Wine, and Spirits Competition, IWSC, Challenge International du Vin, Vinarium, Women's

  International Trophy, Vinalies Internationales.

• • Medium to premium wine: Crama Ceptura ("Crama Ceptura brings us together.") was acquired in 2003 and is primarily distributed in Romania. Ceptura is situated in the Dealu Mare region, which is among the most recognized wine regions in Romania, having a premium image, which strengthens the brand's value proposition. The brand's story is based on the unique climate of the Dealu Mare micro-zone, with bountiful sunshine combined with a favourable topography of the hilly area near the Carpathian slopes, which allows optimal sun exposure. Since 2014, the Crama Ceptura wines are offered in four main price categories: premium Cervus Magnus Monte, upper medium-priced Dominum Cervi, medium-priced Astrum Cervi, and economy plus Cervus Cepturum. In 2021,

  Crama Ceptura acquired a grape grower in the Dealu Mare region with a property of 72.6 ha of land, 55.35 ha of which are mature vineyards.

• • Economy plus to popular premium wine: Bostavan ("Taste it. Love it.") was launched in 2005. Since 2013, a unified Bostavan umbrella brand was launched to support a portfolio of sub-brands in the economy and medium-priced segments and build stronger brand recognition for the wide family of wines. Since 2016, the Group focused on the gradual premiumization of the Bostavan brand, with the launch of Dor series, riding a cool-ethno communication platform. In 2021, Bostavan launched Wine Crime Rose with a focus on the younger generation and rebranded the Dor series.

• • Medium to premium brandy: Bardar ("Only grapes, oak and patience."). The brand was launched in 1929, since the foundation of the distillery by a German entrepreneur. Initially, the Group did not focus on pushing Bardar's brands, relying predominantly on the sales of brandy in bulk, however, starting 2015, Bardar changed its strategy, focusing on the sale of branded bottled products. The relaunch of Bardar as an aspirational, progressive brand has been a success, turning it into a growth engine for the Group. Up to 2019 it was the fastest growing segment in the portfolio, however, in 2020 it was affected by the Covid-19 pandemic as it is dependent on the Moldovan market, Hotel/Restaurant/Catering ("HoReCa") and Duty-Free channels. Despite the restrictive environment continuing in 2021, Bardar showed strong recovery against 2020 and reached slightly behind pre-pandemic results. In 2021, a new Bardar XXO 25 Years has been successfully launched.

1 Premium market size based on Nielsen data for 2021 3