Comelf S.A. — Interim / Quarterly Report 2019

Feb 21, 2020

COMELF SA Societate cotata la Bursa de Valori Bucuresti Registru comertului No.J/06/02/31.01.91 Cont bancar: (Lei) RO (Euro) RO 12INGB0024000040598911 58INGB0024000040590711 Deschise la: ING BANK BISTRITA

Report

Report regarding: Preliminary Financial Statements for 2019 available for review Issued on: February 21th , 2020 Company name: COMELF SA Head Office: Bistrita, no. 4, Industriei str. Telephone / fax nos. : 0263/234462 ; 0263/238092 Tax Identification Number: 568656 Registry of Commerce no. : J06/02/1991 Subscribed and paid-up share capital: 13.036.325,34 lei Regulated Market on which the securities are transacted: B.V.B.

The preliminary yearly financial statements as of December 31st , will be uploaded on our website www.comelf.ro on February 21 th, 2020,as well as in the link below.

General Manager, Financial Manager, eng. Gheorghe Cenusa ec. Dana Tatar

COMELF SA Societate cotata la Bursa de Valori Bucuresti Registru comertului No.J/06/02/31.01.91 Cont bancar: (Lei) RO (Euro) RO 12INGB0024000040598911 58INGB0024000040590711 Deschise la: ING BANK BISTRITA

Preliminary report as of 31.12.2019

Date of report: 21/02/2020 Company name: COMELF SA Registered Office : Bistrita, str. Industry no. 4 Phone / fax number: 0263/234462; 0263/238092 VAT Number: 568 656 Reference number with the Trade Register: J06 / 02/1991 Subscribed and paid up share capital: 13,036,325.34 lei The regulated market on which the issued securities are traded: BSE

The main indicators, thousands of lei	Year 2019	Year 2018	Δ%
Total operating income, of which:	146.319	156.459	(6.48)
Turnover	149.263	151.767	(1.65)
Revenue from projects	137.170	144.457	(5.04)
Profit / (Loss) of the period	2626	2,815	(6.71)
EBITDA	11,541	11,508	0.29
Interest bearing loans	36,592	37,382	(2.11)
Average number of staff	794	878	(9.57)

*The financial figures are not audited and they outline the individual results of Comelf SA, drawn up in accordance with International Financial Reporting Standards (IFRS);

• ❖ Operating income of the company COMELF SA decreased in 2019, compared to those achieved in 2018 by 6.48%, an evolution generated by the basic activity, affected mainly by the fact that the company's staff has decreased, on average, by 9.57%; Although the turnover registered only a slight decrease compared to 2018, the decrease of the operating income by 6.15% is the result of the fact that part of the turnover of the year 2019 has been generated by a balance of work (from FY2018) in execution on 31.12.2018 ;
• ❖ Turnover has also recorded a slight decrease in 2019 compared to 2018. The decrease of the turnover was mainly influenced by the reduction of the number of personnel involved in production (on average by 10.57%). The evolution of the three indicators, respectively operating revenues, turnover and the average number of directly productive personnel, in 2019 compared to 2018 shows a slight improvement of the productivity of the personnel involved in production.
• ❖ Profit of the period: decreased in 2019 compared to the one achieved in 2018, mainly influenced by:
• i) The wage costs, especially those related to the directly productive personnel that increased in line with the evolution of the labor market and their average increase was above the evolution of the turnover (+ 5.77% at the company level).
• ii) The evolution of the EUR / RON exchange rate in 2019 generated additional financial losses of 653 thousand lei.

The company's assets as of 31.12.2019 highlights that:

• (i) the net value of the fixed assets decreased by 5.65% based on their amortization record and the fact that the investments made in 2019 were not above the depreciation level.
• (ii) current assets decreased by 6.86% on 31.12.2019 as compared to 31.12.2018 as a result of the reduction of the amount of commercial receivables (by 4.50%), especially due to the term

collection of commercial receivables and the application of factoring solutions domestic and reverse for 3 important clients of the company, of diminishing stocks of raw materials and materials (by 20%) based on a prudential strategy on the part of acquisitions determined on the one hand by the unpredictable evolution of the prices of materials and on the other hand by the need to optimize the stocks with minimum impact in the company cash flow and to reduce the production in execution by 23% as a result of the increase of the degree of completion and delivery of orders. The cash availability of the company doubled at the end of 2019 compared to the end of the previous year, as a result of the above optimization and implicitly of the cash conversion cycle.

• (iii) The equity increased to the value of 72,097 thousand lei at 31.12.2019 compared to 31.12.2018 as a result of the accumulation of the net result of the year 2019 on the one hand and on the other hand, from the net result of the year 2018, 50% was distributed for the payment of dividends which led to the decrease of equity. The solvency of the company improves on 31.12.2019 to 46% from 44% as it was on 31.12.2018.
• (iv) The debts to the suppliers decreased on 31.12.2019 compared to 31.12.2018 (by 27%), as the company's cash availability improved.
• (v) The interest-bearing loans of the company decrease to 36.5 million at 31.12.2019 as a result of the repayment of part of the credit for working capital.
• (vi) The working capital at 31.12.2019 is 35,546,044 lei (31.12.2018: 37,311,200 lei), of which the amount of 5,376,713 lei will be repaid in 18 months, in equal monthly installments.

General Manager, Financial Manager, eng. Cenusa Gheorghe ec. Dana Tatar

STATEMENT OF FINANCIAL SITUATION on 31th December 2019

	In Lei
Nr.		31.12.2018	31.12.2019
Crt.	DENUMIREA POZITIEI	IFRS	IFRS
	1 Actives
	2 Intangible assets	591,703	607,754
	3 Tangible assets	91,532,890	86,780,993
	4 Financial assets available for sale	-	-
	5 Total Fixed assets	92,124,593	87,388,747
	6 Advance payments for tangible assets	670,205	163,204
	7 Stocks	7,354,769	5,903,890
	8 Account receivables from construction contracts	59,321,959	51,795,428
	9 Commercial account receivables and of other types	2,198,146	2,152,402
	10 Current tax account receivables	-	-
	11 Cash and cash equivalents	3,737,985	7,528,245
	12 Total Current Actives	73,283,064	67,543,169
	13 Total Actives	165,407,657	154,931,916
	14 Capital	13,036,325	13,036,325
	15 Adjustments of the capital	8,812,271	8,812,271
	16 Other elements of equity	(9,183,135)	(8,847,207)
	17 Reserves	60,050,153	59,360,185
	18 Repurchased own shares	-
	19 Reported result	(3,593,366)	(2,891,006)
	20 Year result	2,815,330	2,626,111
	21 Total shareholder's equity	71,937,578	72,096,679
	22 Debts
	23 Long term bank loans	3,497,925	896,119
	24 OTher loans and debts-leaasing	9,692,465	9,436,041
	25 Debts for postponed tax	54,840	831,688
	26 Provisions for risks and expenses	190,059	163,395
	27 Debts for postponed income	7,486,647	6,478,087
	28 Total long term debts	20,921,936	17,805,330
	29 Overdrafts	33,813,275	34,649,925
	30 The current share for the long term loan	-	-
	31 Deferrend tax liabilities	16,293	214,593
	32 The current other loans and liabilities - leasing	413,272	335,928
	33 Commercial and other types of debts	35,394,366	26,539,184
	34 Provisions for risks and expenses	1,316,293	1,698,191
	35 Debts for postponed income	1,594,644	1,592,086
	36 Total current debts	72,548,143	65,029,907
	37 Total Debts	93,470,079	82,835,237
	38 Total shareholder's equity and debts	165,407,657	154,931,916

COMELF S.A. BISTRITA Str.Industriei Nr.4 RO 568656

PROFIT OR LOSS ACCOUNT STATEMENT AND OTHER ELEMENTS OF GLOBAL INCOME

Nr.	DENUMIREA INDICATORILOR	31.12.2018	31.12.2019
crt.
	1 Revenue from contracts with customers	144456906	137,169,702
	2 Income from selling goods	630464	22,430
	3 Other income connected to turnover	8178695	6,650,521
	4 Other income	3192722	2,476,302
	5 Total operating income	156,458,787	146,318,955
	of that: turnover	151,767,209	149,263,123
	6 Raw materials and consumables expenses	67,774,272	61,629,224
	7 Goods expenses	624,568	22,003
	8 Staff expenses	47,687,709	47,509,233
	9 Rent expenses	545,921	715,322
	10 Expenses with premiums asigurarte	460,370	417,965
	11 Transport costs	7,293,618	6,967,833
	12 Amortization and depreciation of fixed assets costs	7,721,176	7,390,556
	13 Adjustments for depreciation of current assets, net	37,297	(47,795)
	14 Provisions costs for risks and expenses , net	(6,158,021)	(194,763)
	15 Other operating expenses	26,605,343	17,516,454
	16 Total expenses	152,592,253	141,926,032
	17 Profit from exloatation	3,866,534	4,392,923
	18 Financial income	2,000,524	2,113,478
	19 Financialexpenses	(2,645,563)	(3,518,820)
	20 Financial loss	(645,039)	(1,405,342)
	21 Total revenue	158,459,311	148,432,433
	22 Total expenses	155,237,816	145,444,852
	23 Profit before tax profit	3,221,495	2,987,581
	24 Tax profit	406,165	361,470
	25 Net income	2,815,330	2,626,111
	26 Other elements of global results
	27 Revaluation of tangible assets
	28 Other comprehensive income , after tax
	29 Total profit of loss account and other elements of global result	2,815,330	2,626,111
	30 Earnings per share
	31 Diluted earnings per share	0.13	0.12
	Cenusa Gheorghe	Tatar Dana

General Manager Economic Manager