SC Cemacon : Stand Alone Financial Statements EN 2023

CEMACON SA

STAND-ALONE FINANCIAL STATEMENTS

Submitted in accordance with

Order of the Minister of Public Finance

No 2844/2016 for the approval of Accounting Regulations in accordance with International Financial

Reporting Standards,

TO AND FOR THE YEAR ENDED

31 DECEMBER 2023

CUPRINS	PAGE
INDEPENDENT AUDITOR'S REPORT	1- 6
STAND-ALONE STATEMENT OF COMPREHENSIVE INCOME	7- 8
STAND-ALONE FINANCIAL POSITION	9
STAND-ALONE CASH FLOW STATEMENT	10
STAND-ALONE STATEMENT OF CHANGES IN EQUITY	11-12
NOTES TO THE STAND-ALONE FINANCIAL STATEMENTS	13-65
REPORT OF THE ADMINISTRATORS	1-2

Note	Financial year ending 31 December 2023	Financial year ending 31 December 2022
Restated*
Sales revenues	3	177.166.071	221.435.406
Other operating revenues	4	16.573.455	11.489.841
Other gains and losses	5	-2.304.705	348.255
Change in inventories of FG & WiP	11.542.597	10.962.415
Raw material and consumables used	15	-43.539.714	-40.303.581
Personnel Expenses	7	-44.713.055	-38.846.840
Depreciation and amortisation expenses	-17.200.883	-14.488.179
Other operating expenses	6	-69.520.097	-76.123.732
Profit / (Loss) from operations	28.003.669	74.473.585
Financial income	8	7.080.516	5.080.371
Financial expenses	8	-4.469.545	-1.590.951
Financial result	2.610.970	3.489.420
Financial result
Share of profit of associated entities
Income from associates
Profit / (Loss) before tax	30.614.640	77.963.005
Profit before tax
Tax expenditure*	9+30	473.087	-6.313.031
Profit / (Loss) from continuing operations	31.087.727	71.649.972
Profit/(Loss) from discontinued operations, net of tax	-	-
Income tax expenses
Profit / (Loss)	31.087.727	71.649.972
Note	Financial year ending 31 December 2023	Financial year ending 31 December 2022
Profit after tax
Other comprehensive income items that cannot be reclassified to the income statement
Other comprehensive income
Total other comprehensive income	-93.645	-95.048
Total overall result	30.994.082	71.554.923
Total comprehensive income
Restated* See Note 30 Accounting presentation errors

These financial statements were signed and approved on March 29, 2024 by:

General Director	Financial Director
Sologon Daniel	Cojocaru-Lungu Bogdan
Signature ______________	Signature ___________
6

Notes	Balance at 31 December 2023	Balance at 31 December 2022	Balance on 1 January 2022
Restated*	Restated*
Fixed assets
Non-current assets
Property, plant and equipment	11	238.955.811	203.699.307	156.211.126
Investment property	13	8.885.960	8.885.960	8.885.960
Intangible	12	4.454.414	1.131.377	1.555.775
Right of use assets	25	15.607.366	17.026.366	18.496.865
Investments	14	127.489.922	1.000	1.000
Other non-current assets	595.277	554.017	411.127
TOTAL Fixed assets	395.988.750	231.298.027	185.561.853
Current assets
Inventories	16	28.717.266	22.579.885	13.075.235
Trade and similar receivables	17	48.204.961	50.248.650	17.064.942
Other assets	15	21.935.009	16.612.591	11.330.612
Cash and cash equivalents	18	85.260.298	133.909.885	84.223.350
TOTAL Current assets	184.117.535	223.351.011	125.694.139
TOTAL ASSETS	580.106.285	454.649.038	311.255.992
CURRENT LIABILITIES
Trade and other payables	19	43.899.413	47.212.962	35.223.686
Other liabilities	21	45.039	-	-
Loans and borrowings	21	12.685.230	-	-
Obligations under leases	27	2.319.811	2.546.188	2.733.143
Grants received	28	1.072.629	766.040	621.092
-
Tax liability*	9	2.499.091	2.499.091	3.266.618
Provisions	24	11.742.289	10.045.567	11.096.948
TOTAL CURRENT LIABILITIES	74.263.503	63.069.848	52.941.487
Notes	31-Dec-23	31-Dec-22	1-Jan-22
Restated*	Restated*
LONG-TERM DEBT
NON-CURRENT LIABILITIES
Non-current trade and other liabilities	19	-	-	-
Other liabilities	20	6.357.251	-	-
Loans and borrowings	20	69.768.765	-	-
Obligations under leases	27	5.547.838	7.492.682	9.588.752
Grants received	28	16.175.142	6.735.832	6.885.531
Deferred tax*	9	2.437.896	3.004.628	3.756.047
Provisions	24	2.877.336	2.848.866	2.780.548
TOTAL LONG-TERM DEBT	103.164.228	20.082.008	23.010.878
TOTAL LIABILITIES	177.427.730	83.151.856	75.952.365
NET ASSETS	402.678.554	371.497.182	235.303.627
CAPITAL AND RESERVES (EQUITY)
Issued capital	25	102.745.391	102.745.391	59.779.702
Deferred Tax	9	-3.414.679	-3.508.324	-3.603.372
Share premium	25	21.735.848	21.735.848	253.004
Reserves	26	129.084.391	97.996.664	74.475.423
Retained earnings*	152.527.603	152.527.603	104.398.871
TOTAL EQUITY	402.678.554	371.497.182	235.303.628
Restated* See Note 30 Accounting presentation errors

These financial statements were signed and approved on March 29, 2024 by:

General Director	Financial Director
Sologon Daniel	Cojocaru-Lungu Bogdan
Signature ______________	Signature ___________
8

DIRECT METHOD	Financial year Closed on 31 December 2023	Financial year Closed on 31 December 2022
Flows from operating activities
Collections from customers	210.467.227	251.585.867
Payments to suppliers	-114.251.636	-123.734.501
Payments to employees	-30.463.566	-26.213.071
Pay taxes and duties	-19.330.750	-33.673.033
Income tax paid	-710.710	-12.823.463
Insurance receipts	61.891	-
Insurance payments	-999.952	-678.693
Interest paid	-2.227.772	-
Other receipts-subsidies	21.514	103.434
Short-term lease payments and low-value assets	-546.618	-114.716
Net cash from operating activities	42.019.628	54.451.824
Cash flows from investing activities
Payments for the purchase of shares	-121.294.043	-
Payments for the purchase of tangible fixed assets	-47.425.909	-70.557.316
Proceeds from the sale of tangible fixed assets	414.085	377.520
Interest received	4.745.528	4.060.528
Other investment grants	11.429.781	596.478
Net cash used in investing activities	-152.130.558	-65.522.790
Cash flows from financing activities
Proceeds from capital contribution	-	64.448.533
Receipts from loans	88.511.010	-
Loans to related parties	-17.565.503	-
Payment of capital lease liabilities	-2.831.431	-3.547.974
Payment of finance lease debts - interest	-472.183	-238.231
Loan repayments	-6.324.829	-
Guaranteed payment	-91.069	-
Net cash from financing activities	61.225.995	60.662.328
Effect of exchange rate differences	235.348	95.172
Net increase/(decrease) in cash	-48.649.587	49.686.534
Cash and cash equivalents at beginning of period	133.909.885	84.223.350
Cash and cash equivalents at end of period	85.260.298	133.909.885

These financial statements were signed and approved on March 29, 2024 by:

General Director	Financial Director
Sologon Daniel	Cojocaru-Lungu Bogdan
Signature ______________	Signature ______________
9

CEMACON SA

STAND-ALONE STATEMENT OF CHANGES IN EQUITY FOR THE FINANCIAL YEAR ENDING 31 DECEMBER 2023 (all amounts are in RON, unless otherwise specified)

Subscribed capital and adjustments	Share premium	Revaluation reserves	Legal reserves	Other reserves	Undistributed result	Other equity items	Total
31-Dec-21* Initial	59.779.703	253.004	31.455.172	9.430.921	33.589.330	106.689.799	-3.603.372	237.594.556
Correction of accounting errors	-	-	-	-	-	-2.290.928	-	-2.290.928
01/01/2022 *Retracted	59.779.703	253.004	31.455.172	9.430.921	33.589.330	104.398.871	-3.603.372	235.303.628
Current overall result	-	-	-	-	-	71.649.972	-	71.649.972
Share capital increase	42.965.689	-	-	-	-	-	-	42.965.689
Increase in share premium	-	21.482.844	-	-	-	-	-	21.482.844
Constitution of legal reserve	-	-	-	3.930.969	-	-3.930.969	-	-
Other reserves	-	-	-	-	19.590.272	-19.590.272	-	-
Diff. deferred taxes	-	-	-	-	-	-	95.048	95.048
31/12/2022 *Restated	102.745.392	21.735.848	31.455.172	13.361.890	53.179.602	152.527.602	-3.508.324	371.497.182

CEMACON SA

STAND-ALONE STATEMENT OF CHANGES IN EQUITY FOR THE FINANCIAL YEAR ENDING 31 DECEMBER 2023 (all amounts are in RON, unless otherwise specified)

Subscribed capital and adjustments	Share premium	Revaluation reserves	Legal reserves	Other reserves	Undistributed result	Other equity items	Total
31/12/2022 *Restated	102.745.392	21.735.848	31.455.172	13.361.890	53.179.602	152.527.602	-3.508.324	371.497.182
Current overall result	-	-	-	-	-	31.087.727	-	31.087.727
Legal reserves	-	-	-	1.554.386	-	-1.554.386	-	-
Other reserves	-	-	-	-	29.533.341	-29.533.341	-	-
Capitalised deferred tax differences	-	-	-	-	-	-	93.645	93.645
31-Dec-23	102.745.391	21.735.848	31.455.172	14.916.276	82.712.943	152.527.602	-3.414.679	402.678.554

Restated* See Note 30 - Presentation accounting errors

These financial statements were signed and approved on March 29, 2024 by:

General Director	Financial Director
Sologon Daniel	Cojocaru-Lungu Bogdan
Signature ______________	Signature ______________

NOTES TO THE STAND-ALONE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDING 31 DECEMBER 2023 (all amounts are in RON, unless otherwise specified)

INFORMATION ON THE COMPANY'S PRESENTATION:

Cemacon SA ("the Company") is a Romanian legal entity, established as a joint-stock company on the basis of GD no.1200/1991 with registered office in Cluj-Napoca, Calea Turzii Street, no.178k, Hexagon Offices building, 1st floor, Cluj Napoca County. Cluj, ROMANIA. The company's main activity is "Manufacture of bricks, tiles and other construction products from fired clay".

In 2023 CEMACON SA acquired 100% of the share capital of EURO CARAMIDA S.A.. ceramic blocks factory with main object of activity according to CAEN code 2332. located in Bihor county. Biharia commune. ROMANIA.

The acquisition was reported to the investing public through the current reports no. 6165/19.06.2023 and no.7416/27.07.2023. published on the website of the Bucharest Stock Exchange and on the website of CEMACON SA. EURO CARAMIDA S.A. has become an affiliated part of CEMACON SA. currently the process of integrating the Biharia factory into the CEMACON ecosite is underway.

The company prepares consolidated financial statements from 2023 onwards. They are available on the websitewww.cemacon.ro under the section "Shareholder Relations/Financial Statements".

1. CEMACON ACCOUNTING POLICIES

Basics of drafting

The principal accounting policies adopted in the preparation of the Stand-Alone financial statements are listed below. The policies have been consistently applied for all years presented unless otherwise stated.

The Stand-Alone financial statements are presented in the national currency Lei, which is also the functional currency of the Company.

Amounts are rounded to the nearest leu, unless otherwise stated.

These Stand-Alone financial statements have been prepared in accordance with OMFP 2844/2016 applicable to publicly traded entities, as amended, namely in accordance with:

• ▪ International Financial Reporting Standards (IFRS) adopted by the European Union;

• ▪ Accounting Act 82/1991 republished ("Act 82");

• ▪ OMF no. 881/2012 on the application of International Financial Reporting Standards ("IFRS") by companies whose securities are admitted to trading on a regulated market,

The preparation of financial statements in accordance with IFRS requires the use of certain critical accounting estimates. The preparation of financial statements in conformity with OMF 2844/2016 requires the Company's management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Although these estimates are made by the Company's management based on the best information available at the date of the financial statements, actual results may differ from those estimates.

Estimates and judgments are evaluated on an ongoing basis and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

These separate financial statements have been prepared on a going concern basis which assumes that the Company will continue in business for the foreseeable future. In order to assess the applicability of this presumption management analyses forecasts of future cash inflows.

On the basis of these analyses, management believes that the Company will be able to continue in business for the foreseeable future and therefore the application of the going concern basis in the preparation of the financial statements is justified. The Company's financial statements are available on the Company's website -www.cemacon.ro in the section "Shareholder Relations/Financial Statements".

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