Sinteza S.A.

Annual Report • Feb 27, 2021

Tel: 0259 456 116 Tel: 0259 444 969 Fax: 0259 462 224 e-mail: sinteza@ sinteza. ro www.sinteza.ro

VAT Reg.No.: RO 67329 Reg.No.at Commerce Register: J.05/197/1991

BANK: BANCA TRANSILVANIA ORADEA IBAN EURO:RO61BTRL00504202N98396XX IBAN RON: RO86BTRL00501202N98396XX SWIFT CODE: BTRL RO22XXX

PRELIMINARY REPORT FOR FINANCIAL RESULTS OF THE YEAR 2020 ACCORDING TO ASF REGULATION NO.5/2018

Date of report: 31.12.2020 Name of the company: S.C. SINTEZA S.A Headquarters: 410605 Oradea,Borşului, road 35 Phone: 40 259 456 116 Fax: 40 259 462 224 Tax Identification Code: 67329 Number of registration in the Commercial Register: J/05/197/1991 Subscribed and paid capital: 9.916.888,50 RON Regulated market where the issued securities are traded: BUCHAREST STOCK EXCHANGE

This Report contains preliminary Financial statements for 2020, prepared in accordance with International Financial Reporting Standards (IFRS).

1. Statement of Financial position-preliminary at 31.12.2020

2. Statement of Comprehensive Income-preliminary at 31.12.2020

We mention that preliminary Financial statements for 2020 were not audited.

SINTEZA SA ORADEA informs the investors that preliminary report for financial results of the year 2020 is available for consultation at the company's headquarters in Oradea, Borşului Street No. 35, daily from 9 to 12, on the company's website www.sinteza.ro ,as well as in link below, starting on 26.02.2020 at 08:30.

GENERAL MANAGER TUDOR-IOAN STOIA

SINTEZA SA Şos. Borşului no. 35 410605 ORADEA - ROMANIA

Financial statements preliminary at 31.12.2020

1. Individual and consolidated Financial Statements-preliminary 31.12.2020

INDICATOR	INDIVIDUAL		CONSOLIDATED
	31-Dec-2019	31-Dec-2020	31-Dec-2019	31-Dec-2020
Tangible assets
Freehold land and land improvements	14,565,500	14,565,500	14,565,500	14,565,500
Buildings	11,724,640	11,311,786	11,724,640	11,311,786
Technical installations and transport means	14,552,554	13,234,203	14,552,554	13,234,203
Furniture, office automation equipments	23,789	50,821	23,789	50,821
Tangible assets in progress	1,922,367	1,837,984	1,922,367	1,837,984
Advance payments for tangible assets
Total of tangible assets	42,788,850	41,000,294	42,788,850	41,000,294
Intangible assets
Concessions, patents, licences, trademarks	205,062	163,469	205,062	163,469
Investment assets
Shares owned at branch offices and other fixed securities	32,114	30,966	35,013	33,866
Rights to use the assets leased	74,898	56,924	74,898	56,924
Total of intangible assets	43,100,924	41,251,653	43,103,824	41,254,553
Current assets
Stocks	3,239,102	996,762	3,242,773	1,000,433
Trade receivables and other receivables	3,052,091	3,412,581	1,274,370	1,634,860
Accrued expenses	225,379	206,524	225,379	206,524
Cash and cash equivalent	38,444	32,503	61,916	54,639
Assets classified as being held for sale	3,602,553	3,602,553	3,602,553	3,602,553
Total of current assets	10,157,569	8,250,923	8,406,991	6,499,009
Total of assets	53,258,493	49,502,576	51,510,815	47,753,562
Shareholders' equities
Share capital	9,916,889	9,916,889	9,916,889	9,916,889
Share premiums
Reserves	27,500,241	27,500,241	28,939,479	28,939,479
Result of the year	-4,061,287	-5,222,953	-4,114,704	-5,277,482
Result carried forward	3,300,876	-760,411	263,744	-3,850,961
Other elements of shareholders' equities	-540	-540	-540	-540
Minority interests			-3,891	-4,018
Total of shareholders' equities	36,656,179	31,433,226	35,000,977	29,723,367
Long-term liabilities
Long-term loans and other liabilities	790,277	402,404	790,277	402,404
Deferred income
Provisions
Deferred tax liabilities	3,652,504	3,652,504	3,652,504	3,652,504
Total of long-term liabilities	4,442,781	4,054,908	4,442,781	4,054,908
Current liabilities Short-term loans	5,897,336	5,577,315	5,897,336	5,577,315
Trading liabilities and other liabilities,
including derivatives	6,124,802	8,252,254	6,032,326	8,211,499
Deferred income	30,820	78,298	30,820	78,298
Provisions	106,575	106,575	106,575	108,175
Liabilities classified as being held for sale
Total of current liabilities	12,159,533	14,014,442	12,067,057	13,975,287
Total of liabilities	16,602,314	18,069,350	16,509,838	18,030,195
Total of shareholders' equities and
liabilities	53,258,493	49,502,576	51,510,815	47,753,562

2.Statement of the individual and consolidated overall result-preliminary 31.12.2020

	INDIVIDUAL		CONSOLIDATED
INDICATOR	31-Dec-2019	31-Dec-2020	31-Dec-2019	31-Dec-2020
Continuous activities
Income	22,494,407	21,978,579	22,494,407	21,978,579
Other income	296,714	20,314	299,730	20,314
Changes in inventories	1,854,528	-2,446,402	1,854,528	-2,446,402
Total of operating income	24,645,649	19,552,491	24,648,665	19,552,491
Expenses related to inventories	14,827,762	10,079,888	14,827,762	10,079,888
Expenses related to utilities	3,474,186	3,758,177	3,474,186	3,758,177
Expenses with the employees'
benefits	4,892,312	5,521,355	4,945,940	5,570,497
Amortization and depreciation of
fixed assets	2,154,870	2,090,735	2,154,870	2,090,735
Gains (-)/losses from the
assignation of fixed assets (+)	-783,061	-5,399	-783,061	-5,399
Value adjustment of current assets	325,447		325,447
Adjustments related to provisions	106,575		106,575
Other expenses	3,367,640	2,955,734	3,370,571	2,961,249
Total of operating expenses	28,365,731	24,400,490	28,422,290	24,455,147
Result of the Operating Activities	-3,720,082	-4,847,999	-3,773,625	-4,902,656
Financial income	125,637	56,733	125,637	56,733
Financial expenses	646,955	431,687	646,955	431,687
Net financial result	-521,318	-374,954	-521,318	-374,954
Result before the taxation	-4,241,400	-5,222,953	-4,294,943	-5,277,610
Expense with the current income
tax
Expenses with the deferred income tax	28,997		28,997
Deferred income tax-related income	209,110		209,110
Result of the Continuous
Activities	-4,061,287	-5,222,953	-4,114,830	-5,277,610
Minority interests			126	128
Total of the overall result afferent
to the period	-4,061,287	-5,222,953	-4,114,704	-5,277,482

GENERAL MANAGER FINANCIAL MANAGER TUDOR- IOAN STOIA ADRIAN BUCUREAN