SIF Banat Crisana : Preliminary Financial Results as of December 31, 2022

SIF BANAT-CRIȘANA PRELIMINARY FINANCIAL RESULTS AS OF DECEMBER 31, 2022

CONTENTS

1	Company presentation
2	Statement of main items of the financial position and the preliminary results
	as of December 31, 2022

Annexes:

Annex 1 Standalone Statement of Financial Position as of December 31, 2022 (preliminary unaudited)

Annex 2 Standalone Statement of Profit and Loss and Other Comprehensive Income as of December 31, 2022

(preliminary unaudited)

Annex 3	Statement of changes in equity as of December 31, 2022
	(preliminary unaudited)
Annex 4	Cash flow statement as of December 31, 2022
	(preliminary unaudited)

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This report presents the preliminary unaudited financial results of SIF Banat-Crișana as of December 31, 2022, prepared in compliance to the Norm 39/2015 issued by the Financial Supervisory Authority (ASF).

The financial results presented herein are preliminary and subject to subsequent adjustments.

This English version of the report is a convenience translation of the "Preliminary financial results as of December 31, 2022" issued in Romanian. The Romanian version of the report is the official document.

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SIF BANAT-CRIȘANA PRELIMINARY FINANCIAL RESULTS AS OF DECEMBER 31, 2022

1. COMPANY PRESENTATION

COMPANY NAME	Societatea de Investiții Financiare Banat-Crișana S.A. (hereinafter referred to
	as "SIF Banat-Crișana" or "the Company")
COMPANY TYPE	▪ joint stock company, Romanian legal entity with entire private capital
	▪ established as a self-managed investment company, authorized by the Financial
	Supervisory Authority as Alternative Investment Fund Manager (AIFM) -
	Authorization no. 78 / 09.03.2018, and as closed-ended alternative investment
	fund, diversified, addressed to retail investors (AIFRI) - Authorization no. 130 /
	01.07.2021
SHARE CAPITAL	▪ RON 50,751,005.60 - subscribed and paid-up capital
	▪ 507,510,056 shares issued, entirely outstanding
	▪ RON 0.10 per share nominal value
REGISTRATIONS	▪ Number in Trade Register J02/1898/1992
	▪ Tax Identification Code RO 2761040
	▪ Number in ASF AFIAA Register PJR07.1AFIAA / 020007 / 09.03.2018
	▪ Number in ASF FIAIR Register PJR09FIAIR / 020004 / 01.07.2021
	▪ Legal Entity Identifier (LEI) 254900GAQ2XT8DPA7274
MAIN ACTIVITY	Main business activity is, as per the classification of economic activities in the
	national economy (CAEN): financial intermediation, except for insurance and
	pension funds (CAEN code 64), and the main object of activity: Other financial
	intermediation n.c.a. (CAEN code 6499):
	a) portfolio management
	b) risk management
	c) other activities carried out within the collective management of an
	investment fund, allowed by the legislation in force

TRADING MARKET

FINANCIAL AUDITOR

DEPOSITARY BANK

SHARES AND SHAREHOLDERS' REGISTRY

HEADQUARTERS

The company is listed since November 1, 1999, on the regulated market of Bucharest Stock Exchange (BVB or BSE) - Premium category - ticker SIF1

Deloitte Audit S.R.L.

Banca Comercială Română (BCR)

Depozitarul Central S.A. Bucharest

Arad, 35A Calea Victoriei, 310158, Romania

TEL [phone] FAX [phone]

EMAIL [e-mail] WEB www.sif1.ro

BRANCHBucharest

46-48 S. V. Rahmaninov Str., 3rd floor, sector 2, 020199, Bucharest

CONTACT Investor Relations: email [e-mail] tel [phone] www.sif1.ro

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SIF BANAT-CRIȘANA PRELIMINARY FINANCIAL RESULTS AS OF DECEMBER 31, 2022

2. STATEMENT OF MAIN ITEMS OF THE FINANCIAL POSITION AND THE PRELIMINARY RESULTS AS OF DECEMBER 31, 2022

SIF Banat-Crișana publishes the preliminary unaudited financial results as of December 31, 2022, prepared according to the Norm 39/2015 for the approval of the Accounting Regulations compliant with IFRS adopted by European Union, applicable to entities authorized, regulated, and supervised by the Financial Supervisory Authority (ASF) of Financial Instruments and Investments Sector.

Total assets held by SIF Banat-Crișana as of December 31, 2022, amounting to RON 3,405.3 million, are down 5.6% vs. 2021, against the backdrop of a tumultuous 2022, characterized by high volatility, macroeconomic uncertainty, and geopolitical tensions.

Within the total assets, the financial assets have the dominant share, standing at a level comparable to 2021. These mainly consist of financial assets measured at fair value through profit and loss (shares issued by subsidiaries and associates, bonds issued by subsidiaries, loan granted to a subsidiary, and fund units), and the financial assets measured at fair value through other comprehensive income (shares). Measurement at fair value is carried out in accordance with the provisions of IFRS 13, using either the available market quotation for listed assets (which meet active market conditions) or valuation reports prepared by authorized valuators, as per International Valuation Standards (for unlisted or listed shareholdings but without an active market). The increase in the item Financial assets measured at fair value through profit and loss compared to 2021 is mainly due to the recognition of the loan granted to SIF SPV TWO S.A. to finance the acquisitions carried out in 2022. The item Financial assets measured at fair value through other comprehensive income (shares) is mainly influenced by: (1) the effect of the movements of the stock prices during 2022 on the Company's minority interest portfolio (mainly the rises of listed companies having financial and pharmaceutical profile) and (2) the net investments made within this category of assets during 2022.

Cash and cash equivalents comprise mostly short-term placements in bank deposits with maturity of up to 3 months. The significant decrease versus 2021 is attributable to the allocation of funds from short-term monetary placements to substantial investments (totalling RON 357 million) made throughout the year, achieved by increasing the shareholding in selected listed minority stakes on the stock exchange (companies, in the financial and energy sectors, recorded in Financial assets measured at fair value through other comprehensive income).

Total liabilities are 15.1% below those existing at 2021 year-end, variation attributed to the adjustment of debt with deferred income tax related to the unfavourable fair value differences recognized in other comprehensive income due to the fair value measurement of financial assets during the year 2022.

As of December 31, 2022, equity amounted to RON 3,242.8 million, 5.1% down vs. the previous year, the decrease being influenced by:

• The decrease in retained earnings is mainly determined by the difference between the current result for 2022 (RON 95.5 million) and the part of the previous year's result that was not distributed as dividends (RON 356 million), transferred to Other reserves, following the resolution of the General meeting for its capitalization as own sources of financing (see page 7 Statement of changes in equity - Retained earnings column);
• The item Difference in changes in the fair value of financial assets measured by other comprehensive income, down 24.6% compared to the end of 2021, reflects the impact of the recognition of unfavourable fair value differences related to financial assets recorded in this category (shares in minority interests held by SIF Banat-Crișana,shares in the two consolidated subsidiaries), influenced both by the net difference in fair value resulting from the MTM (mark to market) and

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SIF BANAT-CRIȘANA PRELIMINARY FINANCIAL RESULTS AS OF DECEMBER 31, 2022

by the net result from the sale of financial assets at fair value through other comprehensive income, transferred to retained earnings.

Dividend income, interest income and other income as of December 31, 2022 (preliminary) amounted to RON 166.2 million, up 27.4% vs. 2021. Their improvement is mainly due to the dividends collected from shareholdings in banking sector, given that in the previous year the dividend policy was impacted by their decision to reduce the amounts distributed or postpone their distribution. Structurally, the largest part (58%) was that of dividends collected form the banking companies, as compared to 2021, when 61% came from the dividends distributed by the companies where SIF Banat-Crișanaholds the majority stake. Interest income related to assets at fair value through profit and loss is up 82% vs. 2021, mainly due to the recognition in the item of the financing component related to the sale of some financial assets from the portfolio, of interest related to the loan granted to the subsidiary SIF SPV TWO S.A, and the bonds with variable interest (VNC24). Interest income related to assets at amortized cost and assets at fair value fair value assets through comprehensive income are up 87% vs. 2021, given the accelerated increase in the interest rates subsidized by the banks for RON deposits established in 2022.

Net gain on investment in the financial year 2022 is significantly below that of 2021 and it is mainly the negative effect of fair value differences related to financial assets measured at fair value through profit and loss (shareholdings subsidiaries and associates, fund units).

Total expenses of the Company decreased compared to the previous year. Structurally, the item Other operating expenses, which includes operating expenses, is down 7.9% compared to 2021, and the level of Commission expenses is almost 15% lower as compared to 2021.

The preliminary net profit for the financial year 2022 is of RON 95.5 million, vs. the result for the previous year of RON 387 million, mainly as the effect of the influences detailed above.

The item Other comprehensive income includes changes in fair value related to the financial assets measured at fair value through other comprehensive income, significantly lower as compared to the previous year, the decrease being mainly due to the downward trend in the fair value of the portfolio of financial assets listed on the stock exchange.

Radu-Răzvan STRĂUȚ

Vice Chairman, Deputy General Director

Dorel BABA

Financial Reporting Manager

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