SIF Banat Crisana : Quarterly Report as of September 30, 2022

QUARTERLY REPORT

- AS OF SEPTEMBER 30, 2022 -

prepared pursuant to the provisions of

Law no. 24/2017, Law no. 74/2015, Law no. 243/2019, ASF Regulation no. 10/2015, ASF Regulation no. 7/2020, ASF Regulation no. 5/2018, and ASF Rule no. 39/2015

this report is provided as a free translation from Romanian, which is the official and binding document

SIF BANAT-CRIȘANA | QUARTERLY REPORT as of September 30, 2022

CONTENTS

1. GENERAL INFORMATION	3
2. MAIN FINANCIAL AND OPERATIONAL INFORMATION	4
3. PORTFOLIO AS OF SEPTEMBER 30, 2022	5
4. THE SHARES ISSUED BY SIF BANAT-CRIȘANA	11
5. THE MANAGEMENT OF SIGNIFICANT RISKS	14
6. SIGNIFICANT EVENTS DURING Q3 2022	22
7. FINANCIAL POSITION AND RESULTS AS OF SEPTEMBER 30, 2022	23
8. EVENTS AFTER THE REPORTING PERIOD	26

9. ANNEXES

Annex 1 - Condensed interim standalone financial statements as of September 30, 2022, prepared pursuant to the Financial Supervisory Authority Rule no. 39/2015 for the approval of accounting regulations in accordance with the International Financial Reporting Standards applicable to entities authorised, regulated, and supervised by the Financial Supervisory Authority, operating in the Financial Instruments and Investments Sector - unaudited

Annex 2 - Net asset statement as of September 30, 2022, prepared pursuant to Annex 10 of Regulation no. 7/2020

Annex 3 - Detailed statement of investments as of September 30, 2022, pursuant to Annex 11 of Regulation no. 7/2020

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SIF BANAT-CRIȘANA | QUARTERLY REPORT as of September 30, 2022

1. GENERAL INFORMATION

CORPORATE NAME

COMPANY TYPE

Societatea de Investiții Financiare Banat-Crișana S.A. (hereinafter referred to as "SIF Banat-Crișana"or "the Company")

• 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 51,542,236.30 - subscribed and paid-in capital
	▪ 515,422,363 shares issued; 507,510,056 outstanding as of 30.09.2022
	▪ 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 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):
	▪	portfolio management
	▪	risk management
	▪ other activities carried out within the collective management of an
		investment fund, allowed by the legislation in force
TRADING MARKET	The company is listed since November 1, 1999 on the regulated market
	of Bucharest Stock Exchange (BVB) - Premium category - ticker SIF1
FINANCIAL AUDITOR	Deloitte Audit S.R.L.
DEPOSITARY BANK	Banca Comercială Română (BCR)
SHARES AND
SHAREHOLDERS' REGISTRY	Depozitarul Central S.A. Bucharest
HEADQUARTERS	Arad, 35A Calea Victoriei 310158, Romania
	TEL [phone] FAX [phone]
	EMAIL [e-mail] WEB www.sif1.ro
BRANCH OFFICE	SIF Banat-Crișana SA Arad-BucharestBranch-Rahmaninov
	46-48 S. V. Rahmaninov Str., 3rd floor, sector 2, 020199, Bucharest

CONTACT Investor Relations: email [e-mail] tel [phone]

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SIF BANAT-CRIȘANA | QUARTERLY REPORT as of September 30, 2022

2. MAIN FINANCIAL AND OPERATIONAL INFORMATION

MAIN BALANCE SHEET ITEMS [RONm]

	31.12.2021	30.09.2022
Total assets, of which	3,607.39	3,129.30
Total financial assets	3,579.13	3,094.11
Equity (own capital)	3,416.13	2,996.07
Total liabilities	191.26	133.23

FINANCIAL PERFORMANCE [RONm]

	30.09.2021	30.09.2022
Operating income	125.61	172.51
Gain/(Loss) on investment	224.53	(143.13)
Operating expenses	14.94	14.45
Gross profit / (Loss)	335.20	14.93
Net profit / (Loss)	321.60	7.27

PERFORMANCE OF SHARES AND NET ASSET

	31.12.2021	30.09.2022
Share price (end of period, RON)	2.5400	2.4500
NAV/S* (RON)	6.7170	5.8902
Accounting net asset / share (RON)	6.7311	5.9035
Nominal value of share (RON)	0.1	0.1
Number of shares issued	515,422,363	515,422,363
Number of outstanding shares	507,510,056	507,510,056

• calculated acc. to ASF regulations
• calculated considering the shares repurchased by the Company

OPERATIONAL DATA

	31.12.2021	30.09.2022
Number of permanent employees	34	32
Branch offices	1	1

SHAREHOLDING STRUCTURE as of September 30, 2022

	number of shareholders	holdings
Romanian individuals	5,739,622	39.70%
Non-resident individuals	2,113	0.33%
Romanian legal entities	113	38.69%
SIF Banat-Crișana	1	1.54%
Non-resident legal entities	25	19.74%
TOTAL	5,741,874	100%

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SIF BANAT-CRIȘANA | QUARTERLY REPORT as of September 30, 2022

3. PORTFOLIO AS OF SEPTEMBER 30, 2022

Investment objective and policy

SIF Banat-Crișana's investment strategy aims to maximize the portfolio performance to increase the value of the assets under management and the investment income. The financial objective is to reap an aggregate return on the portfolio generated from dividend and capital gains.

SIF Banat-Crișana's objective is the efficient management of a diversified portfolio comprised of high- quality assets, capable of providing a steady flow of revenues, the preservation and medium-long term capital growth, to increase the value for shareholders and obtain as high yields for the invested capital.

The strategic allocations by asset classes and within each class are based on assessments of the individual attractiveness of investment opportunities, under the conditions of the macroeconomic and market environment at the time.

Investments are performed over a certain period, complying to the regulated prudential terms, under appropriate risk monitoring and control, to ensure a steady balance of risk and expected return. The investment decision-making process is formalized through internal procedures and the levels of competence approved by the company's Board of Directors. The company applies an exit strategy tailored to the specifics of each investment, defined based on the applied strategy, the investment objectives, the conditions of the exit transaction.

During the reporting period, SIF Banat-Crișana had under management a complex portfolio, consisting of the following main categories of financial instruments: shares, bonds, and fund units.

Analysing the factors and elements generating effects on the investment activity and on the areas in which SIF Banat-Crișana has exposures, the objectives pursued during Q3 2022 continued the investment strategy approved by the shareholders, having as major lines of action:

• calibration of the portfolio on financial assets / instruments that benefit from an inflationary context
• continuing the portfolio restructuring by reducing minority interests that do not fit the Company's investment strategy
• active management in majority interests do develop the business and their performance
• maintaining a diversified portfolio
• integrating the sustainability risk
• maintaining transparency and good corporate governance

Net Asset Value

SIF Banat-Crișana's net asset value (NAV) was of RON 2,989.34m as of September 30, 2022, down 5.66% vs. RON 3,158.63m, the value recorded as of June 30, 2022, and 12.92% lower as compared to September 30, 2021. Net asset value per share (NAV/S) was of RON 5.8902 as of September 30, 2022 (June 30, 2022: RON 6.2238/share).

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