S C Artego S A : RAPORT ADMINISTRATORILOR 2022 – ENGLEZA

SC ARTEGO SA

TG. JIU

REPORT

regarding the activity carried out in 2022 according to the balance sheet concluded on 31.12.2022 in keeping with Order no. 2844/2016 with subsequent amendments and completions - for the approval of the compliant accounting regulations

with International Financial Reporting Standards

SC ARTEGO SA Tg. Jiu, was established according to law no. 31/1990, based on the Government Decision no. 1224/1990 and was registered at the Trade Register under number J18 / 1120/1991, having the fiscal code RO2157428.

Shareholding structure as of December 31st, 2022

Shareholder name	No. actions	Value (RON)	Total share of
			social capital (%)
PAS ARTEGO Employees Association	6.968.820	17.422.050,00	85,8785
Legal Entities	35.414	88.535,00	0,4364
Individuals	1.110.510	2.776.275,00	13,6851
The Romanian State through the	2	5,00	0,0000
Authority for the administration of state
assets
TOTAL	8.114.746	20.286.865,00	100.00

In 2022, the production activity and the economic-financial activity carried out by the company and reflected in the balance sheet concluded on 31.12.2022, are as follows:

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CHAPTER I. PRODUCTION ACTIVITY

In 2022, the production of technical articles was 11.566 tons.

In 2022, the production for export was 6.277 tons of conveyor belts and 1.338 tons of technical sheets. Table 1 shows some comparative data for the years 2018, 2019, 2020, 2021 and 2022.

Table 1

		2018	2019	2020	2021	2022
Commodity	160.781.296	174.382.899	133.069.906	166.390.564	200.934.353
production, RON
Conveyor		10.400	11.157	8.345	9.855	9.097
belts,MT,
of which:
- export		6.104	5.927	4.625	6.598	6.277
RON,		130.314.565	142.666.404	106.471.797	130.819.654	165.911.879
of which
- export		76.294.082	77.566.256	61.611.034	87.027.887	103.168.014
Technical	sheets,	2.049	1.918	1.766	2.771	1.980
MT, of which:
- export		1.348	1.339	1.001	1.890	1.338
RON,		17.113.441	17.622.727	14.266.865	21.567.887	19.920.421
of which
- export		10.928.944	11.708.552	8.536.477	15.480.578	12.797.003
Pressed	gaskets,	597	757	502	539	489
MT
	RON	7.372.035	8.542.478	7.862.762	7.407.575	7.702.883
Total	Export	90.397.674	94.788.398	73.566.105	105.305.989	114.115.626
RON
Total EURO	19.421.370,91	19.967.318,52	15.200.491,44	21.406.669,23	23.130.441,72

During 2022, the export value reached 23.130.441,72 EURO, the export representing

56,79 % of the production of technical rubber articles. The most stable markets where the goods were exported are Germany, England, Spain, the Netherlands. It has also been exported to Italy, France, Finland, Slovakia, Serbia, Austria, Bulgaria. ARTEGO is currently the largest producer of technical rubber articles in Romania (95% of the country's need for conveyor belts) and one of the largest producers in Europe.

The value of export deliveries expressed in EURO is as follows:

The country	2018	2019	2020	2021	2022
Italy	475.077,86	247.672,14	274.257,47	640.898,00	761.516,02
England	3.481.413,73	2.960.298,58	3.378.633,14	4.924.681,66	3.245.759,62
Austria	52.026,53	27.597,83	169.262,38	229.836,04	287.188,26
EUA	35.226,29	34.769,68	-	-	-
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Finland		614.785,52	848.463,14	492.021,60	595.590,48	724.904,20
Spain		3.351.839,72	3.924.233,85	2.911.316,56	3.501.717,70	5.038.474,32
Netherlands	1.877.567,63	1.552.207,44	1.480.772,69	1.752.367,69	3.226.146,65
France		2.331.047,92	2.572.580,19	1.419.709,52	2.180.879,07	792.786,73
Germany		5.567.764,48	6.409.113,48	4.151.773,06	6.165.628,98	7.643.714,52
Poland		103.673,55	40.847,33	61.680,17	63.905,99	112.478.98
Bulgaria		409.987,75	295.444,82	100.350,17	200.843,84	110.652,80
Bosnia	&	2.372,74	5.125,04	44.180,02	5.585,51	83.231,60
Herzegovina
Turkey		17.935,00	40.689,33	9.542,80	-	6.800,00
Estonia		39.791,18	10.582,60	2.531,62	2.274,84	14.580,00
Russia		-	11.871,32	18.268,87	770,00	-
Serbia		398.455,23	270.536,37	255.499,64	206.023,84	416.074,03
Belgium		203.108,06	188.320,82	91.424,65	164.657,40	83.099,94
Hungary		74.463,93	247.477,86	88.074,42	186.411,22	211.894,37
Czech		18.992,00	10.579,84	4.741,76	8.821,12	16.688,64
Republic
Ireland		49.826,20	-	-	-	-
Ukraine		11.652,16	48.753,54	9.962,29	83.606,03	70.560,11
Greece		32.066,43	57.104,73	156.532,60	45.278,27	2.116,00
Egypt		83.905,96	33.477,72	33.565,39	114.380,77	25.145,94
Lithuania		30.607,91	10.679,83	2.674,19	1.769,20	4.020,61
Moldavia		58.760,48	18.646,54	-	-	-
Slovakia		40.430,54	76.578,12	30.770,15	302.112,09	78.516,31
Morocco		15.520,18	-	-	-	-
Qatar		34.477,49	-	-	-	-
Slovenia		8.594,44	7.758,68	-	2.671,19		--
Macedonia		-	10.412,70	2.792,40	-	-
Norway		-	5.495,00	5.375,00	-	-
Belarus		-	-	3.883,88	-	-
Latvia		-	-	895,00	-	-
Azerbaijan		-	-	-	25.958,30	-
Elvetia		-	-	-	-	15.383,26
Suedia		-	-	-	-	158.708,71
TOTAL		19.421.370,91	19.967.318,52	15.200.491,44	21.406.669,23	23.130.441,72

An essential aspect to the achievements of our company is brought by the good professional training of the specialists and the management team who have always sought and found solutions not only for maintaining on the market the technical rubber articles, but also for its expansion.

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Solutions were found for the production of new parts that, until recently, were only in the portfolio of renowned companies, such as DUNLOP, CONTINENTAL, METSO MINERALS, etc.

The training of the technical staff and its involvement in finding solutions regarding the improvement of technologies, modern equipment and the reduction of production costs was materialized by obtaining over 66 patents in the period 1985-2022. Other technical solutions are under examination at OSIM for patent, and others are in the industrial testing phase. The patented technical solutions are very diverse, some of them being made in cooperation with companies from outside Romania.

CHAPTER I I. FINANCIAL STATEMENT - EQUITY

The financial statement is based on the internal correlations existing between the elements of the patrimony from the balance sheet assets in the form of assets (economic means) available to ARTEGO SA for its production activity and in the liabilities of the balance sheet as financial sources for the formation of fixed or current assets. and the financial result of the company.

A. 1. Economic means

Economic means or direct patrimonial elements consist of fixed assets and current assets. The assets are organized in the balance sheet, in assets with acyclic use (allocation) which

includes the group of "Fixed assets" and assets with cyclical use (allocation) which includes the group of "Current assets".

	INDICATOR	Beginning of 2022	End of 2022
		(lRON)	(RON)
Fixed assets - total	38.666.360	38.205.805
a) Intangible assets	8.773.917	7.266.395
b) Tangible fixed assets of which:	29.892.443	30.939.410
-	land	12.775.919	12.892.792
-	Fixed assets at inventory value	98.304.407	97.794.397
-	Fixed assets at the remaining value	17.047.718	16.335.214
-	Corporal immobilizations in progress	202.227	1.844.825
c)	Financial fixed assets	-

A. 2. CURRENT ASSETS

In order to achieve its goal SC ARTEGO SA TG. JIU, must have cars, buildings and other tools. In order to make this production device work, the company had to: - buy raw materials;

• to ensure stocks at different stages of the production process;
• to sell in order to recover the resources spent.

Current assets consist of inventories, short-term realizable values and available values.

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The value of current assets at 31.12. 2022 according to the balance sheet is of 98.381.653

RON structured as follows:

	Indicator		Total (RON)	%
1. STOCKS of which:		56.550.742	57,48
-	raw materials, materials		35.065.254
-	finished product		20.947.189
-	products in progress		89.834
-	Assets held for sale		50.289
-	overtures		398.176
2. MONEY AVAILABILITY		820.842	0,83
3. RECEIVABLES		40.995.672	41,67
-	Trade receivables		37.257.499
-	other receivables		3.738.173
4.	SHORT-TERM	FINANCIAL	14.397	0,02
INVESTMENTS

B. PATRIMONY SITUATION

During 2022, an inventory program and fund management control was carried out. Net Assets = Fixed Assets + Current Assets - Liabilities

The net asset reflects the company's ability to meet its financial obligations.

INDICATOR	M / U	2018	2019	2020	2021	2022
Fixed assets	RON	47.883.466	44.934.421	41.680.492	38.666.360	38.205.805
Current assets	RON	92.542.155	93.052.623	83.037.086	98.332.713	98.381.653
Total Assets	RON	140.425.621	137.987.044	124.717.578	136.999.073	136.587.458
Total Debts	RON	57.866.515	49.258.275	38.819.721	49.745.718	43.363.720
Own capital	RON	82.545.357	88.982.079	86.199.939	87.536.120	93.530.664

ECONOMIC-FINANCIAL RESULTS

In the period 2018-2022, the economic-financial indicators were achieved as follows:

	2018	2019	2020	2021	2022
					(RON)
I Operating income	183.846.345	197.290.206	157.159.639	191.637.944	226.489.237
a) Turnover	169.013.285	181.088.888	131.914.607	172.531.341	199.727.280

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