Eurohold Bulgaria AD

Earnings Release • Nov 30, 2021

NEWS RELEASE

Eurohold reports strong results for first three quarters of 2021 after partial consolidation of the new energy business

• Revenues increased 49% to over BGN 1.78 billion
• Operating profit (EBITDA) quadrupled to BGN 68 million
• Assets doubled to BGN 3.2 billion
• The equity rose 4 times to nearly BGN 550 million

Sofia, 30 November 2021 - Eurohold Bulgaria AD, the largest Bulgarian public holding and one of the leading financial and еnergy groups in Southeast Europe, has reported a solid growth in its financial results and significantly improved its profitability for the first nine months of 2021, showed the company's consolidated interim statement, including partially (2 months) the performance of CEZ Group's subsidiaries in Bulgaria acquired by the holding at the end of July.

In January-September 2021 the total revenues of Еurohold reached BGN 1.78 billion, up by 49% compared to the same period in 2020. The energy companies generated 18.4% of the total revenues of the group for the period, as their full contribution would be evident next year. Еurohold's gross operating profit increased by a little over 123% on the year to BGN 157.1 million. EBITDA nearly quadrupled compared to the first nine months of 2020 to approximately BGN 68 million. The final net financial result is positive for the first nine months of 2021 and amounts to BGN 4.35 million.

Еurohold's assets doubled compared to December 2020 and already exceeded BGN 3.2 billion. The company's equity increased four times to nearly BGN 550 million.

All business segments of Еurohold continued to report an increase in their revenues and to recover their results to the pre-COVID-19 levels. Revenues from the insurance activities of the group increased by 22.1% y-o-y to approximately BGN 1.3 billion. Revenues from insurance premiums of the subsidiary Euroins Insurance Group (EIG) grew by 26% on the year to BGN 830 million.

The other business lines of the holding - car sales, leasing and financial-investment activity, operating under Avto Union AD, Eurolease Group EAD and Euro-Finance AD brands, registered growth in their revenues and operating profits (see the table below). The results of the automotive subholding as of September 2021 have still not reflected the sales of some of its subsidiaries earlier this year, which was in line with Еurohold's strategy to focus on the insurance and energy business.

"The integration of the newly acquired energy companies is successful and our results in this business segment will further grow. Other business segments are also developing well. Eurohold has already regained its positions from the pre-COVID pandemic period

in insurance and financial-investment services and to some extent in the other market segments. We expect the upward trend in our financial performance to continue in the coming periods," said Kiril Boshov, chairman of Еurohold's management board.

In July 2021, Еurohold's unit - Eastern European Electric Company B.V. (EEEC), acquired seven subsidiaries of Czech energy group CEZ in Bulgaria for EUR 335 million. As a result of the transaction, Еurohold became a majority owner of the largest power grid operator, the biggest power supplier and the largest licensed electricity trader in Bulgaria. EEEC also acquired an IT services company, a solar park, a biomass-fired power plant, as well as the company that used to coordinate the operations of all CEZ Group's units in Bulgaria.

	Revenue			EBITDA			Net profit
Segments	Q3 2021	Q3 2020	Change	Q3 2021	Q3 2020	Change	Q3 2021	Q3 2020	Change
	000'BGN	000'BGN	%	000'BGN	000'BGN	%	000'BGN	000'BGN	%
Insurance	1,292,492	1,058,559	22%	18,613	9,390	98%	7,509	458	1540%
Energy	328,017	-	-						-
Automotive business	140,755	121,175	16%	21,400	6,254	242%	15,269	(432)	-
Leasing services	19,289	16,370	18%	4,942	4,019	23%	96	(285)	-
Asset management and brokerage services	9,078	6,622	37%	2,225	91	2345%	2,024	(88)	-
Total subsidiaries	1,789,631	1,202,726	49%	75,167	19,754	281%	25,186	(347)	-
Parent company	1,420	2,230	-36%	(5,375)	(103)	-	(20,657)	(12,008)	-
Total without eliminations	1,791,051	1,204,956	49%	69,792	19,651	255%	4,529	(12,355)	-
Intragroup eliminations	(8,013)	(8,862)	-	(1,829)	(1,546)	-	(176)	(494)	-
Total with eliminations	1,783,038	1,196,094	49%	67,963	18,105	275%	4,353	(12,849)	-

Consolidated results of Eurohold Bulgaria AD in January - September 2021

Source: Consolidated financial statement for the period

Eurohold Bulgaria AD

Eurohold Bulgaria AD is a leading financial and energy group, operating in the CESEE and FSU region in the area of electricity distribution, supply and trade, insurance, leasing, car sales, investment services and asset management. It is listed on the BSE and the WSE. Еurohold serves over 7 million customers and employs more than 6000 people in 14 countries. Eurohold owns Euroins Insurance Group (EIG) AD, one of the largest independent insurance groups operating in the CESEE and FSU markets. The company provides a full range of insurance products in the area of general, health and life insurance. Bulgaria-based group operates in 13 European countries and owns insurance subsidiaries in Bulgaria, Romania, North Macedonia, Ukraine, Georgia, Russia and Belarus. EIG also operates in Greece and Poland, and has niche insurance operations in Spain, Italy, Germany and the United Kingdom. Currently the insurance group has more than 4 million clients and over 3000 employees. www.eurohold.bg; www.eig.bg