SC Cemacon : H1 2023 Report

CLUJ-NAPOCA,

August 31st 2023

BSE REPORT

Calea Turzii nr.178K, Etaj 1,

Cluj-Napoca, România, PO: 400491

[e-mail]:www.cemacon.ro

6 Month Performance 2023

• Halving of Operating Profit EBITDA
• 36% decrease in Turnover
• Net Turnover: 78.98 million lei

General Manager Statement

The constructions and the real estate market are strongly impacted by the increase in interest rates and inflation, and the confidence to build and invest in new constructions has decreased in the context of the nearby war.

The data at our disposal show us that all the countries in the region experience decreases of at least 30% of the construction materials market.

Even in a context in which the market has collapsed, we aim to be the most efficient producer of bricklaying. In the last 12 years, at Cemacon, we developed the business constantly demonstrating agility; we adapted and performed both in periods of peak cycle, when demand exceeded supply, and in periods of low demand, succeeding in capacity increases and factory restarts.

In this context, we focused our efforts on strategic investments, with medium and long-term results:

• the opening of a new apparent brick production unit through which we diversify the business and create growth potential,
• the acquisition, integration and modernization of the Euro Crămida factory in Biharia,
• the implementation of a photovoltaic park through which renewable energy will ensure a large part of the consumption of the factories in the Recea industrial park.
  The investments were very large, exceeding 45 million euros; through this effort, the business is strengthened and new prospects for growth are created.

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Calea Turzii nr.178K, Etaj 1,

Cluj-Napoca, România, PO: 400491

[e-mail]:www.cemacon.ro

Profit and loss Account - 6 Month Results 2023

Evolution of Net Turnover & EBITDA (mil Lei)

	Net Turnover	EBITDA	123.43

83.92

78.98

73.71

67.47

54.8557.46

	34.89	38.58	38.77		33.44
			31.07
27.34
			21.07	22.08
				17.83
6.12	7.98	6.16	10.15

30-Jun-1430-Jun-1530-Jun-1630-Jun-1730-Jun-1830-Jun-1930-Jun-2030-Jun-2130-Jun-2230-Jun-23

In an unstable macroeconomic context, the construction materials market registered a significant decrease, compared to the 2019-2022 period.

CEMACON's sales followed the same market trend, so that for the first 6 months of 2023, the net turnover is 79 million lei, down 36% compared to the similar period of 2022.

In the category of other operating income, the EUA certificates received during the period are highlighted, and the income from the variation of stocks reflects the production activity of the period. The expenses with raw materials and consumables registered a decrease of 13% compared to the previous period, while personnel costs marked an increase of 7%. Depreciation expenses increased as a result of the commissioning of the investments completed in the first part of the year. Financial income registered a significant increase due to placements in deposits.

For the period ended June 30, 2023 CEMACON has an EBITDA of 33,440,952 lei and a net profit of 28,688,237 lei.

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Calea Turzii nr.178K, Etaj 1,

Cluj-Napoca, România, PO: 400491

[e-mail]:www.cemacon.ro

Profit and loss Account - 6 Month Results 2023

	30-Iun-23	30-Iun-22	2023 vs 2022	2023 vs 2022
	LEI	LEI	LEI	%
Gross Turnover	92,896,654	131,731,030	(38,834,376)	-29%
Net Turnover	78,983,042	123,429,514	(44,446,471)	-36%
Sales revenues	78,972,692	123,419,128	(44,446,436)	-36%
Other operating revenues	14,961,165	11,173,438	3,787,728	34%
Other gains and losses	5,713,391	7,862,077	(2,148,686)	-27%
Change in inventories of FG & WIP	8,860,181	2,798,029	6,062,152	217%
Raw materials and consumables	(16,173,533)	(18,557,953)	2,384,420	-13%
Personnel expenses	(24,570,980)	(23,047,026)	(1,523,954)	7%
Other operating expenses	(34,321,964)	(37,810,907)	3,488,943	-9%
EBITDA	33,440,952	67,469,699	(34,028,747)	-50%
Depreciation and amortization expenses	(7,649,511)	(6,960,848)	(688,663)	10%
Income impairment of assets	-	-	-	0%
EBIT	25,791,441	58,875,938	(33,084,497)	-56%
Financial Income	4,065,512	214,010	3,851,502	1800%
Financial Expenses	(1,168,717)	(358,357)	(810,360)	226%
Financial result	2,896,795	(144,347)	3,041,142	-2107%
Profit before tax*	28,688,237	58,731,592	(30,043,354)	-51%
Income tax expenses	-	(9,070,752)	9,070,752	-100%
Profit after tax	28,688,237	49,660,840	(20,972,602)	-42%
Total other elements of other	-	-	-
Comprehensive income	-
Comprehensive income total	28,688,237	49,660,840	(20,972,602)	-42%

*At the time of presentation of the results for Semester 1 2023, no other comprehensive income and deferred tax items have been computed. ** EBITDA = Operating profit + Expenses with depreciation + Financial discounts granted - Income impairment of non-current assets

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Calea Turzii nr.178K, Etaj 1,

Cluj-Napoca, România, PO: 400491

[e-mail]:www.cemacon.ro

Statement of financial position - Results 30th of June 2023

	30-Iun-23	31-Dec-22	2023 vs 2022	2023 vs 2022
ASSTES	LEI	LEI	LEI	%
NON-CURRENT ASSETS
Property, plant and equipment	238,562,278	203,699,307	34,862,971	17%
Investment property	8,885,960	8,885,960	-	0%
Intangible	1,209,249	1,131,377	77,872	7%
Rights of use assets	16,248,964	17,026,366	(777,402)	-5%
Investments	127,489,922	1,000	127,488,922
Other non-current assets	583,506	554,017	29,489	5%
NON-CURRENT ASSETS TOTAL	392,979,879	231,298,027	161,681,852	70%
CURRENT ASSETS
Inventories	26,118,425	22,579,886	3,538,539	16%
Trade and other receivables	57,943,475	50,248,650	7,694,825	15%
Other receivables	18,885,688	16,612,591	2,273,097	37%
Cash and cash equivalents	60,002,662	133,909,885	(73,907,223)	-55%
CURRENT ASSETS TOTAL	26,118,425	22,579,886	3,538,539	16%
TOTAL ASSETS	555,930,129	454,649,038	101,281,090	22%
CURRENT LIABILITIES
Trade and other payables	28,314,744	47,212,962	(18,898,217)	-40%
Loans and borrowings	12,656,670	-	12,656,670	0%
Lease liabilities	737,142	702,461	34,680	5%
Obligations under finance leases	1,701,014	1,843,729	(142,714)	-8%
Grants received	1,006,456	766,040	240,416	31%
Tax liability	-	-	-	-
Provisions	5,424,833	10,045,567	(4,620,734)	-46%
CURRENT LIABILITIES TOTAL	49,840,860	60,570,757	(10,729,898)	-18%
NON-CURRENT LIABILITIES
Non-current trade and other liabilities	-	-	-	-
Other liabilities	6,291,439	-	6,291,439	0%
Loans and borrowings	75,940,020	-	75,940,020	0%
Lease liabilities	4,579,492	4,937,224	(357,733)	-7%
Obligations under finance leases	1,787,978	2,555,458	(767,480)	-30%
Grants received	8,952,334	6,735,832	2,216,502	33%
Deferred tax	3,004,628	3,004,628	0	0%
Provisions	2,848,866	2,848,866	0	0%
NON-CURRENT LIABILITIES TOTAL	103,404,757	20,082,009	83,322,748	415%

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