SIF Oltenia S.A.

Annual Report • Feb 28, 2023

No. 2781 /28.02.2023

Translation from Romanian into English

To: BUCHAREST STOCK EXCHANGE Fax no.: 021-307.95.19

FINANCIAL SUPERVISORY AUTHORITY Financial Instruments and Investments Sector Fax no.: 021.659.60.51

CURRENT REPORT

according to Law no. 24/2017 (R) and FSA Regulation no. 5/2018 on issuers of financial instruments and market operations

Report date: 28.02.2023 Name of the issuer: Societatea de Investiţii Financiare OLTENIA S.A. Headquarters: Dolj County, Craiova, 1 Tufănele Street, postal code 200767 Phone/Fax: 0251-419.335 / 0251-419.340 Fiscal Registration Code: RO 4175676 Order number at the Trade Register: J16/1210/30.04.1993 FSA Register Number: PJR09FIAIR/160001/08.06.2021 ISIN: ROSIFEACNOR4 LEI Code: 254900VTOOM8GL8TVH59 Depozitory-Custodian: Raiffeisen Bank S.A. Depozitory: Depozitarul Central Bucuresti Share capital subscribed and paid: 50,000,000 lei Regulated market on wich the issued securities are traded on: Bucharest Stock Exchange – Shares, Premium Tier (market symbol SIF5)

Important event to report: Preliminary financial results for the financial year 2022

According to the financial communication schedule for 2023, S.I.F. OLTENIA S.A. presents the preliminary financial results for the financial year 2022, not audited by the external financial auditor.

Statement of Financial Position and Statement of Profit or Loss and other items of comprehensive income as of December 31, 2022, including preliminary data, prepared in accordance with the provisions of FSA Regulation no. 39/2015 for the approval of the Accounting Regulations compliant with the International Financial Reporting Standards, applicable to the entities authorized, regulated and supervised by the Financial Supervisory Authority in the Financial Instruments and Investments Sector and the Investors Compensation Fund are presented as annexes to this report.

The preliminary financial statements for the financial year ended 31.12.2022 are available to shareholders and investors starting with February 28, 2023, at 08:30 a.m., as follows:

• on the company's website, www.sifolt.ro, Section "Investor information / Periodical reports"

• on the website of the Bucharest Stock Exchange, www.bvb.ro.

• at the company's headquarters in Craiova, Tufănele street no. 1.

Additional information regarding the preliminary financial results can be obtained at the telephone number 0251-419397, contact person Mrs. Valentina Vlăduțoaia - Director of the Economic Department.

Sorin - Iulian CIOACĂ President - General Manager

Viorica Bălan Compliance Officer

PRELIMINARY INDIVIDUAL FINANCIAL STATEMENTS as of 31 December 2022

drawn up in accordance with

Rule no. 39/2015 approving the Accounting Regulations compliant with the International Financial Reporting Standards, applicable to entities authorized, regulated and supervised by the Financial Supervisory Authority in the Financial Instruments and Investments Sector, as well as the Investor Compensation Fund

UNAUDITED

Table Of Contents

INDIVIDUAL FINANCIAL STATEMENTS

	Page
INDIVIDUAL STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME……	1
INDIVIDUAL STATEMENT OF FINANCIAL POSITION	2
INDIVIDUAL STATEMENT OF CHANGES IN EQUITY	3-4
INDIVIDUAL CASH FLOW STATEMENT	5

Statement of profit or loss and other comprehensive income

in RON		31 December 2022	31 December 2021*restated
Income
Gross dividend income		194,404,216	57,273,099
Interest income		2,824,719	392,111
Other operating income		98,629	638,289
Expenses
Net gain/(loss) from the revaluation of financial assets at fair value through the profit or loss account		(118,242)	1,552,115
(Losses)/reversal of losses from assets amortization/depreciation		34,592	38,776
Expenses related to salaries, allowances and similar expenses		(16,805,940)	(11,931,543)
Operating expenses		(7,933,808)	(6,052,799)
Profit before tax		172,504,166	41,910,048
Profit tax		(7,695,679)	(4,287,792)
Net profit of the financial year		164,808,487	37,622,256
Other comprehensive result items
Increases/ (deductions) of the reserve from the revaluation of tangible assets, net of deferred tax		86,687	936,341
(Loss)/Net gain on revaluation of equity instruments measured at fair value through other comprehensive income ("FVTOCI"), net of deferred tax		(203,623,079)	306,575,825
Total other comprehensive result items		(203,536,392)	307,512,166
Total comprehensive result for the financial year		(38,727,905)	345,134,422
Basic and diluted earnings per share
Net profit per share		0.3383	0.0752
Net earnings per share including gain on sales of financial assets measured at fair value through other comprehensive income		0.3988	0.2643
Sorin – Iulian Cioacă President - General Manager	Mihai Trifu Vice-President - Deputy General Manager		Vlăduțoaia Valentina Economic Manager

Individual statement of financial position

in RON	Note	31 December 2022	31 December 2021 *restated	January 1 2021 *restated
Assets
Cash and current accounts		2,241,614	3,918,232	4,279,517
Deposits placed with banks		12,881,011	14,631,528	26,602,893
Financial assets measured at fair value through profit or loss		4,475,075	4,652,462	3,598,943
Financial assets measured at fair value through other comprehensive income		2,205,311,434	2,367,086,068	1,995,142,337
Depreciated-cost bonds		2,927,744	6,851,710	-
Other assets		1,732,249	3,995,141	1,404,984
Tangible assets		12,400,450	12,463,318	11,282,944
Receivables from deferred profit tax		93,891	-	92,163
Total assets		2,242,063,468	2,413,598,459	2,042,403,781
Liabilities
Dividends payable		49,300,619	45,798,986	61,222,189
Liabilities related to current profit tax		-	16,776,057	-
Financial liabilities evaluated at amortized cost		2,096,313	443,880	257,892
Other liabilities		10,314,899	8,359,573	11,295,436
Deferred profit tax liability		63,087,285	109,146,540	78,318,319
Total liabilities		124,799,116	180,525,036	151,093,836
Shareholders' equity
Share Capital		50,000,000	50,000,000	52,214,914
Legal reserves		10,003,314	10,003,314	9,932,437
Profit or loss carried forward		887,013,879	729,408,036	649,163,058
Reserves from tangible assets revaluation		7,408,018	7,687,157	7,074,686
Reserves from revaluation of financial assets at fair value through other comprehensive income		582,643,084	815,714,658	603,668,705
Other reserves		643,561,019	620,260,258	631,218,714
Own shares		(2,500,000)	-	(2,214,914)
Other shareholders' equity items		(60,864,962)	-	(59,747,655)
Total shareholders' equity		2,117,264,352	2,233,073,423	1,891,309,945
Total liabilities and shareholders' equity		2,242,063,468	2,413,598,459	2,042,403,781

Sorin – Iulian Cioacă Mihai Trifu Vlăduțoaia Valentina President - General Manager Vice-President - Deputy General Manager Economic Manager

Individual statement of changes in equity

in RON	Share Capital	Reserves from tangible assets revaluation	Reserves from revaluation of financial assets at fair value through other comprehensive income, net of deferred tax	Retained earnings	Legal reserves	Other reserves	Own shares	Other shareholders' equity items	TOTAL
BALANCE AS AT 1 JANUARY 2022 (reported)	50,000,000	7,241,779	778,347,775	731,780,300	10,003,314	620,260,258	-	-	2,197,633,426
Corrections	-	445,378	37,366,883	(2,372,264)	-	-	-	-	35,439,997
BALANCE AS at 1 JANUARY 2022 (restated)	50,000,000	7,687,157	815,714,658	729,408,036	10,003,314	620,260,258	-	-	2,233,073,423
COMPREHENSIVE RESULT
Profit for the period ended 31 December 2022	-	-	-	164,808,487	-	-	-	-	164,808,487
Other comprehensive result items
Revaluation of tangible assets, net of deferred tax	-	86,687	-	-	-	-	-	-	86,687
Transfer of revaluation reserve to retained result due to derecognition of tangible assets	-	(365,826)	-	365,826	-	-	-	-	-
Revaluation at fair value of FVTOCI equity instruments, net of deferred tax	-	-	(203,623,079)	-	-	-	-	-	(203,623,079)
(Gain)/Loss on transfer in retained earnings resulted from the sale of FVTOCI equity instruments	-	-	(29,448,495)	29,448,495	-	-	-	-	-
TOTAL COMPREHENSIVE RESULT related to the period	-	(279,139)	(233,071,574)	194,622,808	-	-	-	-	(38,727,905)
Transactions with shareholders
Decrease in share capital	-	-	-	-	-	-	-	-	-
Own shares repurchased	-	-	-	-	-	-	(2,500,000)	-	(2,500,000)
Differences (losses) related to own shares repurchased	-	-	-	-	-	-	-	(60,864,962)	(60,864,962)
Own shares cancelled	-	-	-	-	-	-	-	-	-
Own financing sources	-	-	-	(23,300,761)	-	23,300,761	-	-	-
Dividends limited according to law	-	-	-	-	-	-	-	-	-
Total transactions with shareholders recognised directly in equity	-	-	-	(23,300,761)	-	23,300,761	(2,500,000)	(60,864,962)	(63,364,962)
Dividends payable for 2021	-	-	-	(14,250,000)	-	-	-	-	(14,250,000)
Total transactions with shareholders	-	-	-	(37,550,761)	-	23,300,761	(2,500,000)	(60,864,962)	(77,614,962)
Other corrections	-	-	-	533,796	-	-	-	-	533,796
BALANCE AS AT 31 DECEMBER 2022	50,000,000	7,408,018	582,643,084	887,013,879	10,003,314	643,561,019	(2,500,000)	(60,864,962)	2,117,264,352
Sorin – Iulian Cioacă President - General Manager Vice-President -	Mihai Trifu Deputy General Manager						Vlăduțoaia Valentina Economic Manager

Individual statement of changes in equity

in RON	Share Capital	Reserves from tangible assets revaluation	Reserves from revaluation of financial assets designated at fair value through other comprehensive income	Retained earnings	Legal reserves	Other reserves	Own shares	Other shareholders' equity items	TOTAL
BALANCE AS AT 1 JANUARY 2021 (reported)	52,214,914	7,169,734	582,017,291	651,606,842	9,932,437	631,218,714	(2,214,914)	(59,747,655)	1,872,197,363
Corrections	-	(95,048)	21,651,414	(2,443,784)	-	-	-	-	19,112,582
BALANCE AS AT 1 JANUARY 2021 (restated)	52,214,914	7,074,686	603,668,705	649,163,058	9,932,437	631,218,714	(2,214,914)	(59,747,655)	1,891,309,945
COMPREHENSIVE RESULT
Profit for the period ended 31 December 2021	-	-	-	37,622,256	-	-	-	-	37,622,256
Other comprehensive result items
Revaluation of tangible assets, net of deferred tax	-	936,341	-	-	-	-	-	-	936,341
Transfer of revaluation reserve to retained result due to derecognition of tangible assets	-	(323,870)	-	323,870	-	-	-	-	-
Revaluation at fair value of FVTOCI equity instruments, net of deferred tax	-	-	306,575,825	-	-	-	-	-	306,575,825
(Gain)/Loss on transfer in retained earnings resulted from the sale of FVTOCI equity instruments	-	-	(94,529,872)	94,529,872	-	-	-	-	-
TOTAL COMPREHENSIVE RESULT related to the period	-	612,471	212,045,953	132,475,997	-	-	-	-	345,134,422
Transactions with shareholders
Decrease in share capital	-	-	-	-	-	-	-	-	-
Own shares repurchased	-	-	-	-	-	-	-	-	-
Own shares cancelled	(2,214,914)	-	-	-	-	-	2,214,914	-	-
Own financing sources	-	-	-	(27,231,020)	-	(32,519,744)	-	59,750,764	-
Dividends limited according to law	-	-	-	-	-	21,561,288	-	-	21,561,288
Other items with impact on shareholders' equity	-	-	-	-	70,877	-	-	(3,109)	67,768
Dividends payable for 2020	-	-	-	(25,000,000)	-	-	-	-	(25,000,000)
Total transactions with shareholders	(2,214,914)	-	-	(52,231,020)	70,877	(10,958,456)	2,214,914	59,747,655	(3,370,944)
BALANCE AS AT 31 DECEMBER 2021	50,000,000	7,687,157	815,714,658	729,408,036	10,003,314	620,260,258	-	-	2,233,073,423

Sorin – Iulian Cioacă Mihai Trifu Vlăduțoaia Valentina President - General Manager Vice-President - Deputy General Manager Economic Manager

Selected explanatory notes to individual financial statements on 31 December 2022

Individual cash flow statement

in RON
Item name	Reporting period
	31 December 2022	31 December 2021
A	1	2
Cash flows from operating activities
Net profit of the financial year	164,808,487	37,622,256
Adjustments
Reversal of impairment losses on financial assets	(34,592)	(38,776)
Loss/(Gain) on financial assets at fair value through profit or loss	118,242	(1,552,115)
Dividend income	(194,404,216)	(57,273,099)
Interest income	(2,824,719)	(392,111)
Establishments / (reversals) related to benefits granted to employees	3,917,681	(4,563,154)
Profit tax	7,695,679	4,287,792
Other adjustments	(268,912)	221,488
Changes in assets and liabilities related to operating activity
Payments for acquisitions of financial assets at fair value through other comprehensive income	(181,849,452)	(183,526,428)
Proceeds from sales of financial assets at fair value through other comprehensive income	104,801,909	164,962,617
Payments for bond purchases	-	(6,800,000)
Proceeds from bonds	3,923,966	-
Changes to other assets	590,280	(98,141)
Changes in other liabilities	(309,922)	1,813,276
Collected dividends	185.201.708	54,835,830
Collected interest	2,824,719	340,402
Paid profit tax related to comprehensive income	(23,157,594)	(2,998,915)
Net cash from operating activities	71,033,265	6,840,922
Cash flows from investing activities:
Payments for acquisitions of tangible and intangible assets	(495,181)	(296,564)
Proceeds from the sale of fixed assets and investment property	80,867	-
Net cash from investing activities	(414,314)	(296,564)
Cash flows from financing activities:
Dividends paid out	(10,748,367)	(18,861,916)
Own shares repurchased	(63,300,000)	-
Net cash used in financing activities	(74,048,367)	(18,861,916)
Net increase/(decrease) in cash and cash equivalents	(3,429,416)	(12,317,558)
Cash and cash equivalents at the beginning of the reporting period	18,546,307	30,863,865
Cash and cash equivalents at the end of the reporting period	15,116,891	18,546,307

Sorin – Iulian Cioacă	Mihai Trifu	Vlăduțoaia Valentina
President - General Manager	Vice-President - Deputy General Manager	Economic Manager