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Compa S. A.

Quarterly Report Aug 13, 2021

2308_ir_2021-08-13_5a6ea2af-fe92-4fe3-beca-1e7a68c2effd.pdf

Quarterly Report

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INTERIM FINANCIAL REPORT H1 – 2021 (unaudited)

SEPARATE REPORT H1 – 2021

CONTENT

  • 1. INTRODUCTION
  • 2. COMPA - BRIEF HISTORY
  • 3. IMPORTANT EVENTS PRODUCED IN H1 2021
  • 4. FINANCIAL STATEMENT - ACCOUNTING
  • 5. ANALYSIS OF THE COMPANY'S ACTIVITY
  • 5.1. PRODUCTS, PROCESSES
  • 5.2. PROCUREMENTS - SUPPLIERS
  • 5.3. sale
  • 5.4. OUR EMPLOYEES
  • 5.5. QUALITY - ENVIRONMENT
  • 5.6. RISK MANAGEMENT
  • 5.7. INVESTMENTS, NEW PRODUCTS AND RESEARCH-DEVELOPMENT ACTIVITY
  • 6. CAPITAL MARKET
  • 7. MANAGEMENT OF THE COMPANY
  • 8. SIGNIFICANT TRANSACTIONS
  • 9. SEPARATE INTERIM FINANCIAL REPORT ON 06/30/2021
  • 9.1. DECLARATION OF CONFORMITY OF THE NON-CONSOLIDATED INTERIM FINANCIAL STATEMENT
  • 9.2. UNCONSOLIDATED INTERIM FINANCIAL REPORT ON 06/30/2021

This is a free translation from Romanian, which is the official and binding version.

1. INTRODUCTION

This Report of the Board of Directors is prepared in accordance with:

  • Regulation ASFnr. 5/2018 on issuers of financial instruments and market operations, and
  • Law 24/2017 on issuers of financial instruments and market operations, art.65.

The main objective of the half-yearly report is to inform investors about the changes in the company's position and performance, which took place in the first half of 2021.

COMPA S.A. prepares individual financial statements in accordance with international IFRS financial reporting standards.

2. COMPA – BRIEF HISTORY

COMPA S.A. - prestigious brand of the Romanian automotive industry has gained its reputation over time due to the diversity and competitiveness of its products, especially in the field of cars and springs, qualities acquired in over 130 years of existence and high-performance activity..

1886 - The first official documentary attestation of the blacksmith's workshop Iózsef Datky (1844-1928), recognized as "Datky Iosif & Sons' Body Shop", which produced lamellar springs for carriages, forged parts, bards, axes, hammers, teslas, etc. . The workshop becomes a supplier of carriages for the Royal House of Vienna, and the recognition of the merits and quality of the products made was also proven by the participation in international exhibitions: Budapest (1896) and Paris (1898).

1920 - The beginning of the manufacture of springs for cars and wagons and the transformation of the blacksmith workshop into Elastic A Datky "being the first Romanian factory of springs and special smithy workshop.

1932 - The company "ELASTIC A.DATKY & Co" - the first spring and file factory - moves to the manufacture of files and spiral springs. The technology of manufacturing lamellar springs for trucks and cars has also been developed.

1948 - Nationalization of the factory and continuation of the activity under the name of the STATE ELASTIC ENTERPRISE which until 1960 produced files, springs and forged parts.

1961 - The Elastic Factory Sibiu specializes in the manufacture of: sheet springs; hot-rolled helical springs and cold-rolled helical springs.

1969 -- ESTABLISHMENT OF AUTO PARTS COMPANY Sibiu (IPAS) by merging two important companies from Sibiu, which, over time, had an independent individual course:

  • Sibiu Automecanica Factory, with an impressive history during its development, from an Arsenal of Sibiu Artillery that ensures the repair and manufacture of weapons for the defense of the Sibiu Citadel (before merger) and the production of car equipment, combining the experience of forerunners with new progress of the technology and management of those times;

  • Elastic Factory, with deep roots in the craft tradition of the fortress, being established in the nineteenth century as a blacksmith's workshop, which later developed into a body shop and finally, before the merger in 1969, in the spring and forged parts factory.

The unification of the two representative factories of Sibiu and the establishment of the SIBIU AUTO PARTS ENTERPRISE (IPAS) represents a crucial moment, laying the foundations, in Sibiu of a strong company in the automotive field, of an enterprise that would become one of the main suppliers of components for the manufacture of trucks and buses based on the license taken over by the Romanian State from the German company MAN.

The Auto Parts Enterprise has entered into a national development program, with major investments in the construction of halls and the acquisition of state-of-the-art machinery and equipment for that period. Within the company, there were assimilated in manufacturing and produced, as a result of the purchase of licenses from various companies in the European car industry:

  • Equipment for the braking system of vehicles;
  • Cardan transmissions;
  • Steering systems;
  • Telescopic shock absorbers;
  • Vehicle suspension systems.

1991 - Transformation of the AUTO PARTS COMPANY SIBIU, as a result of the change of the regime from December 1989, into a joint stock company, a company with full state capital, with the name of S.C.COMPA S.A.Sibiu.

1996 - Establishment by Compa, together with a company within the German concern KRUPP, of a joint venture - Krupp Bilstein Compa, for the manufacture of telescopic shock absorbers for car production

1997 -The company's shares are traded on the Bucharest Stock Exchange starting with June 12, 1997, under the symbol CMP. The securities issued by the company are traded in the Standard category of BVB.

1998 Establishment of the second joint venture - Krupp Compa Arcuri, for the manufacture of lamellar springs for trucks, vans and off-road vehicles.

1999 -The complete PRIVATISATION of COMPA, by taking over the main package of shares owned by the COMPA Employees Association (PAS). Privatization was the most radical form of restructuring. The change of ownership meant a complex and profound change in the performance of all the company's functions taken separately and as a whole.As such, the premises for the most profitable use of human, material and financial resources have been created.

2000 - The first affiliated company is established - Compa IT SRL, in the IT field, with full capital from COMPA.

2001 - The affiliated company TRANS CAS SRL is established, with predominant capital from COMPA, by transforming the existing Transport Base within the company, into a separate domestic and international transport company.

2004 - -The affiliated company RECASERV SRL is established, with a profile of public alimentation, realized by outsourcing the specific activities (canteen and microcantines from COMPA). Subsequently, it expanded its activity through catering and cleaning services.

2004-2018 - - Establishing collaborative partnerships with some of the most important companies in the automotive field in the world, as well as with non-auto companies, in order to make components intended mainly for the automotive industry worldwide.

During this period, rehabilitation works were carried out, especially of the halls and warehouses, requiring their modernization and bringing them to a level of operation under the conditions imposed by our business partners.

In order to ensure the production spaces at the level of the requirements and standards of these periods, important investment were made.

The overwhelming share of investment expenditures made from own sources but also from bank loans was mainly focused on financing the acquisition of new, stateof-the-art machines and equipment, in order to achieve automotive components at the level of complexity, technicality and quality. requested by the company's partners.

Compa continues to develop in a sustained rhythm, using high-performance technology and equipment..

2020-- Participation of COMPA S.A., as sole shareholder in the establishment of a limited liability company named Arini Hospitality SRL;

2021 - Establishment of the limited liability company named Arini Hospitality SRL

3 H1 2021 EVENTS

29.01.2021 - The Board of Directors approved the assignment to the affiliated company Arini Hospitality SRL of the Hotel Consulting Services Contract dated 17.01.2020 and the additional act dated 18.11.2020 concluded between Compa SA as Owner and AccorHotel Services Magyarorszag Kft Budapest as Consultant Hotel.

The results of the annual inventory (2020) of the company's patrimony were also approved, respectively the Registration of adjustments for the depreciation of receivables and stocks and the scrapping / transfer on costs of some:

  • Fully depreciated fixed assets that can no longer be used
  • Totally depreciated stocks
  • Receivables, other bad debts

It was also approved the resumption of revenues of debts prescribed and / or unrecognized by partners.

08.03.2021 The Board of Directors approved the convening of the General Meetings of Shareholders of COMPA S.A. (OGMS and EGMS) for 22.04.2021 the reference date was established and the agenda of the two meetings (OGMS and EGMS) was approved

22.04.2021 - The Ordinary General Meeting (OGMS) and the Extraordinary General Meeting of Shareholders (EGMS) were held in accordance with the legal regulations in force.

The OGMS meeting approved the individual and consolidated financial statements for the financial year 2020, based on the Annual Report for 2020 presented by the Board of Directors, accompanied by the Report of the financial auditor AUDITCONT S.R.L. and the distribution of the net profit related to the financial year 2020, as follows:

  • to own development sources the value of 10,712,555.28 lei
  • To cover losses from previous periods the value of 403,355 lei

  • for granting dividends to shareholders - the value of 2,803,856.15 lei with a gross dividend / share of 0.0132 lei, corresponding to a share with a nominal value of 0.1 lei;

The payment of dividends related to the financial year 2019 was made starting with June 9, 2021 through the Central Depository in accordance with the provisions of Art. 86 para. 5 of Law 24/2017 and art. 177 of the FSA Regulation no. 5/2018, in securities accounts or directly at BRD, as the case may be.

The shareholders entitled to receive the dividends distributed from the net profit realized from the financial year 2020 are those registered in the consolidated register of shareholders on 18.05.2021 - the date of registration (approved by the A.G.O.A. of 22.04.2021). "Ex date" was set for 17.05.2021.

A new Board of Directors was re-elected consisting of:

Ioan DEAC - administrator,

Ioan MICLEA - administrator,

MIrcea Florin MAXIM - administrator,

Nicolae BALTES - administrator and

Vlad Nicolae NEACSU - independent administrator,

elected for a term of 4 years starting with 26.04.2021.

The EGMS meeting approved the contracting of loans for investments, credit lines, leasing, letters of bank guarantee, and other banking financial products, with a total cumulative ceiling of EUR 40 million for 2021 and the establishment of movable and immovable guarantees with assets from the company's patrimony, as well as the power of attorney of the General Manager and the Economic Director, to represent the Company on the occasion of negotiating and signing credit agreements, guarantees and any other necessary documents.

At the same time, the appointment of the representative of COMPA S.A. was approved. in relation to the Managing Authority / Financing Authorities and for the empowerment of the person / persons to sign in the name and on behalf of the Company the financing contracts that will run from 2021 and further until the next EGMS of April 2022.

At another item on the agenda, it was approved to amend the articles of association of Compa S.A. by eliminating from point VIII the General Meeting of Shareholders the attributions of the Ordinary General Meeting provided at point 1 letter. g, h, i, j.

By open vote, it was approved the establishment of a secondary office - working point at the address in Sibiu, Bd. Victoriei no. 42-44, Jud. Sbiu. for the affiliated company ARINI HOSPITALITY S.R.L., company having its registered office in Sibiu, str. Henri Coanda no. 8, Jud. Sibiu, registered at the Registry Office attached to the Sibiu Tribunal under no. J / 77 / 19.01.2021, having a unique registration code no. 43581594.

28.04.2021 - The Board of Directors (newly elected) meeting in the first meeting elected its Chairman, Vice-Chairman and Audit Committee, as follows:

Ioan DEAC - administrator, chairman of the Board

Ioan MICLEA - administrator, vice-president of the Board

MIrcea Florin MAXIM - administrator,

Nicolae BALTES - administrator, chairman of the Audit Committee

Vlad Nicolae NEACSU - independent administrator, member of the Audit Committee

14.05.2021 - The Board of Directors analyzed and approved the financial statements for the first quarter of 2021 (individual and consolidated).

11.06.2021 The constitutive act updated at the affiliated company TRAN-CAS SRL is registered at the Trade Register, registering the decrease of its share capital from 1,500,000 lei to 750,000, in accordance with Hot. Extraordinary General Meeting of Shareholders of Compa SA from 12.11.2020 and of the Decision of the Extraordinary General Meeting of Trans-Cas SRL Associates from 12.01.2021.

Following this operation, Compa's holding in the share capital of TRANS-CAS decreases from 1,498,450 lei to 742,500 lei. The amount of 755,950 lei will be paid by TRANS-CAS SRL to COMPA in the next period.

3.1. EVENTS AFTER THE REPORTING PERIOD

21.07.2021 The Board of Directors convened the OGMS for 09.09.2021, for the approval of the Remuneration Policy for the members of the management structure and the EGMS on the same date, in order to contract by the affiliated company Arini Hospitality (in which Compa is the sole partner) a loan necessary to finance the state aid obtained through the financing agreement of 14.06.2021 issued by the Minister of Finance, as well as the guarantee by Compa (either as guarantor or co-debtor) of the bank loans requested by ARINI HOSPITALITY (in case the banks financiers will request this).

The Board of Directors presented and analyzed the situation of the company for the period April - June 2021. It also presented the situation regarding the payment of dividends, the payment approved by the OGMS decision of 22.04.2021.

4. FINANCIAL STATEMENT - ACCOUNTING

4.1. The main balance sheet items on 30.06.2021, compared to 30.06.2020;

In order to analyze the economic and financial situation for the first semester of 2021, we further present the following indicators:

INDICATOR 30.06.2020 30.06.2021
Fixed assets 489,526,763 493,639,346
Current assets 175,643,343 273,381,882
Debts less than one year 69,486,608 155,858,741
Debts over one year 125,104,313 111,530,949
Capital and reserves 470,579,185 499,631,538

4.2. The situation of incomes and expenses in the period 01.01.2021-30.06.2021, compared to the same period last year

INDICATOR 30.06.2020 30.06.2021
Operating income 241,507,923 376,568,637
Operating expenses 243,511,297 354,873,550
Operating result -2,003,374 21,695,086
Financial income 2,189,790 3,510,399
Financial expenses 4,226,979 4,363,332
Financial result -2,037,189 -852,933
Total income 243,697,713 380,079,036
Total expenses 247,738,276 359,236,882
Gross result -4,040,563 20,842,153
Tax 14,504 3,419,489
Net result -4,055,067 17,422,664

4.3. Statement of cash flows on 30.06.2021 and 30.06.2020

INDICATOR 30.06.2020 30.06.2021
Net cash generated from operations 53,590,483 11,816,257
Net cash generated from investment activities -55,852,480 -14,993,117
Net cash generated from financial activity -2,656,640 3,998,103
Net cash flow -4,918,637 821,243
Cash at the beginning of the period 6,079,821 887,887
Cash at the end of the period 1,161,184 1,709,130

4.4. Key financial indicators

INDICATOR 30.06.2020 30.06.2021
Current liquidity 2.52 1.75
Degree of indebtedness 0.21 0.18
EBITDA 21,923,571 42,864,713

Current liquidity = current assets / current debts

Degree of indebtedness = borrowed capital / capital engaged

EBITDA = net profit + interest expenses + tax expenses + depreciation and amortization expenses

5. ANALYSIS OF THE COMPANY'S ACTIVITY

5.1. PRODUCTS, PROCESSES

"PROFIT CENTER" organizational structure for managing the production activity in COMPA

The production activity within the parent company COMPA is organized on Profit Centers. These "profit centers" are in fact production sections / workshops where families of similar products are made from a constructive and technological point of view, equipped with machines and equipment specific to the realization of these products, being decentralized production units. The economic activity is organized in such a way that in each profit center the profit and loss account is elaborated monthly, a very important document for knowing the incomes and expenses so that by summing the profit and loss accounts of the Profit Centers the Profit and loss account is obtained. at the COMPA level.

There are also profit centers specialized in making a wide range of similar products in terms of manufacturing processes such as: forged products, products made by stamping, surface coatings (galvanizing, phosphating), heat treatments, etc., products designed more many customers. So, profit centers are structured to make certain types of products, regardless of the customer to whom they are delivered.

By decentralizing the activity, respectively organizing these production sections / workshops, on profit centers, the operations managers, those responsible for the profitable management of these production units were entrusted with multifunctional teams, sized with staff, respectively directly productive workers. and indirectly productive staff, support services, in areas such as: production, technical, quality, maintenance, logistics, improvement, training.

Operations managers, managers of the multifunctional management team have the obligation to achieve each product at the level of profitability included in the price negotiated with the business partner. The activity of the multifunctional teams of the profit centers is oriented in this direction: for the inclusion in the established standard costs, for the permanent reduction of the costs, for the obtaining of the planned profit of each manufactured product..

Machining Line Forging Line

COMPA manufactures a wide range of products and operates with various processes. Their grouping, in order to quantify the value of manufactured production both in the Annual Reports of the Board of Directors and for various statistical reports, etc., are based on a certain functional similarity of them, branches or industrial sectors, etc.

Thus, the organizational and logistical structure is coherent and can be understood by COMPA shareholders and investors, business partners, etc..

PRODUCT CATEGORY H1 2020 Q 1 2021
Name Mii RON Mii RON
Components for engine injection systems 119.778 191.579
Components for windshield wiper systems 25.451 32.304
Pinion steering gear 14.407 18.510
Turbo blower subassembly 29.130 44.440
Welded mechanical subassemblies 13.945 19.632
Non-auto products 32.692 62.184
COMPA TOTAL 235.402 368.650
PRODUCT CATEGORY H1 2020 Q 1 2021
Name % %
Components for engine injection systems 50,88 51,97
Components for windshield wiper systems 10,81 8,76
Steering gear sprockets 6,12 5,02
Turbo blower subassembly 12,37 12,05
Welded mechanical subassemblies 5,92 5,33
Non-auto products 13,89 16,87
COMPA TOTAL 100,00 100,00

5.2. . PROCUREMENTS – SUPPLIERS

5.2.1. Evaluation of purchasing activity:

The purchasing activity has developed continuously in recent years, with the development of the company. The company's focus on large customers in the automotive industry but also on those in the non-automotive industry, has led to a considerable expansion of the database of suppliers as well as an increase in the share of suppliers in imports, in total purchases. This is due to the high level of specialization required of suppliers.

Also, in the next period it is estimated that the value of semi-finished products in total

purchases will decrease, in favor of basic materials, largely due to the development of new processes in Compa for both the automotive and non-automotive sectors with a high degree of integration. for which most operations are performed internally.

5.2.2. The main objectives of the department are:

  • In the context of market globalization - the need to align the market with stock prices for most products by obtaining a price index with 100% compliance with MEPS. (Management Engineering and Production Services price indicator on the metallurgical market, which provides price estimates).

  • Finding sources of supply to ensure the highest possible competitiveness of the prices of raw materials and supplied materials, stability and sustainability of the supply chain.

  • Market research and finding new supply solutions as well as the development of suppliers with whom there are collaborations in order to obtain the best price and quality level in the supplied products by collaborating only with certified suppliers. Compa monitors and evaluates on a monthly basis all suppliers whose products are incorporated or influence Compa products. This category includes a number of over 360 suppliers who are evaluated according to criteria related to the quality of the delivered products and logistical criteria..

  • Improving the performance of cutting tools (eg drills, reamers, cutters, inserts, etc.) is achieved by testing and implementing new and innovative solutions that reduce the cost per piece.

    • Recovery of costs generated by the non-quality of the supplied products. The costs generated by non-compliant products delivered by suppliers are monitored and recovered every year.
  • Establish a responsible supply chain by working with suppliers that respect COMPA's principles and vision in the field of quality, environment and health and safety at work by adhering to and implementing policies and regulations addressing these issues, by adhering to, certifying and aligning regulations / standards addressing these issues..

  • COMPA maintains and calls on its suppliers to take a proactive approach in managing environmental impact, social responsibility and adopting progressive labor, health and safety policies.

  • COMPA encourages and supports the local business environment through existing trade relations, existing contracts and new / future projects in which its partners are / will be involved. It prioritizes where possible business development with local partners and encourages its suppliers to do the same.

5.3. SALE

5.3.1. Evaluation of sales activity

In the first 6 months of 2021, the marketing-sales activity was oriented on the extension and consolidation of the commercial relations with the existing partners and on the development of new businesses in the nonautomotive industry.

Efforts have also been made to maintain a competitive level of selling prices, in line with the evolving market for raw materials, especially steels, which is constantly growing.

The graph below shows the evolution of turnover of COMPA in the first half of the year 2020 - the first half of the year, as well as the evolution of the turnover in the non-automotive sector in the same periods where we recorded an increase of> 35%

The share held by the main COMPA customers in the turnover for the semester 1-2021 is highlighted in the following graph:

5.3.2. Medium AND long-term objectives, trends and strategies:

  • Development of new projects for non-automotive customers;

  • Strengthening trade relations with existing customers;

  • Promoting manufacturing processes by hot forging and ZnNi coatings, where Compa has free production capacity;

  • Assimilation of products with high added value;

  • Development of COMPA as an integrated supplier by using as many existing processes in the portfolio as possible.

5.4. OUR EMPLOYEES

5.4.1. Its staff, values and beliefs

COMPA considers that the human factor has a major influence on the achievements in society. The values and beliefs of human resources must be known and promoted for the formation and development of an organizational culture conducive to performance.

The following aspects are important and constitute development landmarks:

  • the formation and mode of action of managers in terms of values, beliefs and demographic characteristics (age, experience, education, social position);
  • the formation and mode of action of the company's staff (personalities, attitudes, values, motivations, behaviors, beliefs);

• the culture of the organization and the adherence of the staff to it as a somewhat unitary way of manifestation, thinking, feeling, way of being and perceiving values and beliefs, of responding to different attitudes and of using the same language.În ceea ce priveşte managementul capitalului uman, s-a pornit de la premiza că îndeplinirea obiectivelor strategice depinde în primul rând de factorul uman. Dezvoltarea firmei implică elemente care crează valoare pe termen lung şi care pot asigura performanţa viitoare a organizaţiei.

COMPA aims to ensure that the human resources policy is in line with the general objectives of the company, in line with the existing values in the organizational culture, adapted to the current socio-economic context, focusing mainly on:Asigurarea disponibilităţii şi continuităţii forţei de muncă prin păstrarea valorilor din organizaţie;

  • efficient integration processes through early recruitment of graduates or internships;
  • rewarding employees in direct relation with their contribution to the goals of the organization;
  • increasing the level of versatility by widening the scope of competencies;
  • reducing the integration period of graduates by supporting dual education;
  • focusing training on the individual to increase staff skills and efficiency;
  • capitalizing on the expertise of experienced employees through mentoring programs;
  • efforts to raise staff awareness of responsibilities and behaviors;

5.4.2. Strategic objectives

The main strategic axes pursued in the following years:

  • Involvement in the development of university technical education, by supporting the integration of theoretical and practical knowledge, through internships for dual education and in European projects;
  • Working conditions and climate to ensure a high level of satisfaction;
  • Development of soft and specific skills;
  • Development of the framework in which communication with employees is carried out to support performance and trust, as well as in special crisis situations;
  • Partial transfer of the training activity in the online environment;
  • Reassessment of motivation strategies;

  • Digitization and efficiency of HR processes;

  • Reprofessionalization and transformation of skills correlated with technical and technological changes;
  • Focusing attention on accessing European funds for human capital development;
  • Developing / consolidating a culture of performance to determine individual behaviors and work orientation.

5.4.3. Recruitment and selection policy

În sem.I 2021 au fost depuse 1237 oferte de angajare (CV-uri, cereri, scrisori de intenţie). Au participat la interviuri (interviu, probe de lucru, teste psihologice) în vederea ocupării posturilor vacante 950 persoane.

Dintre aceştia, 397 au fost angajaţi; 45 au fost respinşi din motive profesionale la interviu/probele de lucru, 30 au fost respinşi din alte motive (analfabetism, probleme de sănătate incompatibile cu condiţiile de lucru) şi un număr de 478 de persoane au renunţat la postul oferit din diferite motive (mediul de lucru, programul de lucru, salariu).

5.4.4. Wage and social policy

Following the negotiations, between the COMPA management and the unions, during the period between November 2020 and October 2021, a salary indexation of 2.70% was granted. Along with the indexation of the salary scale, the benefits deriving from it were also indexed (Christmas and Easter bonuses, holiday bonus, travel allowance, etc.).

During 2020, two additional acts to the applicable Collective Labor Agreement were concluded between the Administration and the unions, regarding the following aspects:

  • changing the number of days off granted on the occasion of Orthodox Easter from 3 to 2 days, according to the provisions of the Labor Code;
  • compensation for work performed on holidays by paying double-hour hours;
  • indexation of the salary grid with a percentage of 2.70%;
  • increasing the value of the meal ticket from 15 lei to 20 lei.

Meal vouchers were given to all employees throughout the year. There are labor relations between the management of the company and the employees within the limits of the Labor Code and of the Collective Labor Agreement.

Weekly, information and consultations take place between the management and the employees' representatives. Compared to previous years, relations have improved, the degree of understanding and communication has increased, the two sides participating in joint meetings. As a result, there were no periods of stagnation of the production process due to the onset of labor disputes.

In the context of the difficult labor market climate generated by the Covid-19 pandemic, COMPA has pursued a policy of increasing the adaptability of staff to the changes the company is going through. During this period, the company relied on the availability of employees to develop new skills as well as to take over additional responsibilities in case of restructuring certain activities..

5.4.5. Social responsibility

COMPA consistently applies principles and rules of social responsibility that reflect the requirements of the standard SR ISO 26000: 2011, but also of customers:

  • taking responsibility for the impacts we produce on society, the economy and the environment;
  • transparency of our decisions and activities, which can affect society and the environment;

• respecting and promoting an ethical behavior: honesty, fairness and integrity, as values that concern us, in relation to people and the environment;

  • respect for the interests of stakeholders in our decisions and activities;
  • ensuring compliance with all applicable laws and regulations;
  • compliance with international norms of business behavior;
  • respect for and promotion of human rights, which we consider inalienable and universal.

5.4.6. The guidelines as main themes of action are:

• ensuring an organizational management as a way of leading and carrying out activities in an ethical and responsible manner;

• respect and promotion of human rights in the sense of recognizing the rights of all human beings, civil, political, economic, social and cultural rights;

• application of adequate work practices to ensure working conditions and social protection according to applicable legal standards and regulations;

• protecting the environment as a way to respond to current environmental challenges and as a commitment to apply and promote environmentally responsible practices, including by encouraging the development of green technologies;

• the application of fair practices as a way of ethical conduct in relations with other organizations and persons, respecting the applicable national and international laws and regulations;

• responsibility to customers and consumers to ensure their right to security of use, information, choice, expression, correction, education, in relation to products and services provided by our organization;

• involvement in the development of the community as a way of recognizing that we are part of the community, of the rights due to its members, but also of the elements of culture, religion, tradition and history or of the partnership with it.

5.4.7. Performance indicators of Human Resources processes

Average number of personnel

The evolution of the average written number of staff in sem. I 2021 registered a decrease compared to the similar period of 2020, from 1999 employees to 1865 employees. This decrease occurred by correlating the number of staff with the temporarily reduced volume of activity due to the Coronavirus pandemic, with the mention that a large part of the staff was in Sem.1 2020 in technical unemployment.

At the end of Sem. 1 2021 there was an increase in the average written number of staff to a number of 1894 employees.

Throughout this period, the aim was to ensure the availability and continuity of the workforce by preserving the values of the organization.

The graph below shows the evolution of the average written number of staff by staff categories:

H1 2020 % H1 2021 %
MDP (Directly productive workers) 1283 64,18% 1234 66,17%
MIP (Indirectly productive workers) 285 14,26% 234 12,55%
Economic technical staff 431 21,56% 397 21,29%
TOTAL 1999 100,00% 1865 100,00%

It is found that although the average number of staff decreased, the proportions of the three categories of staff changed, increasing by 2% the share of directly productive workers (MDP), to the detriment of indirectly productive workers (MIP).

Labor productivity

Labor productivity, calculated as a ratio between turnover and the average written number of staff recorded the following evolution:

H1 2020 H1 2021
Labor productivity (mii lei/pers.) 178.90 207.87

At the end of H1 2021, labor productivity registered a cumulative value of 207.87 thousand lei / person, 16.2% higher than the value recorded for this indicator at the end of H1 2020.

Fluctuation

Staff turnover, calculated as a ratio between the number of voluntary departures and the total number of employees, registered the following evolution during this period:

H1 2020 H1 2021
Fluctuation (%) 7.55 10.29

Analyzing the evolution of staff turnover, an increase of this indicator was found, reason for which a series of measures were established in COMPA to remedy this situation, namely: reporting on the level of salaries and benefits in the area, qualification / requalification courses offered to employees, concluding apprenticeship contracts, granting rent allowances, providing transport for commuting employees, settling the value of transport for other employees, improving working conditions (air conditioning, noise reduction, social spaces, etc.).

Staff training

The human resources policy COMPA also aims to transform society into an organization that "Continuously learns".

The continuous development of human capital through the formation of skills to support the company's development strategy is a priority for COMPA. The management of the company is aware of the advantages offered by highly qualified human resources, familiar with the requirements of the industrial environment quality requested by customers. Therefore, the continuous training of their own employees is a priority for the company's management.

COMPA, as a "learning organization", constantly provides development opportunities for all employees, uses learning to achieve company goals, ensures the permanent combination of individual performance with the performance of the organization, supports career development, determines people to identify with the organization . The objective of the training activity for 2021 is 30 hours of training / employee, increasing compared to 2020 when the target of this indicator was 29 hours / employee.

The training programs developed in COMPA aim to meet the needs of each employee. In order to achieve this objective, in 2005 the Vocational Training Center was established. The programs developed by the center aimed at qualifying / retraining employees in trades such as: machine tool operators with numerical control, welders, mechanical locksmiths, machine mechanics, toolmakers, metrologists, drills-threaders, etc. So far a number of 2837 people have acquired a qualification through this center.

Apprenticeship

For new employees who want to acquire a qualification or retrain, COMPA develops apprenticeship programs that allow them to easily integrate into new jobs, to obtain a recognized certification, to raise their level of knowledge, satisfaction of responsibility . Currently 9 COMPA employees follow these programs and at the end of the two years of study they will obtain the qualification of operator for numerically controlled machine tools. In the future we intend to increase the number of new employees who follow apprenticeship programs and who will obtain qualifications of level 2 (drill-threader) and level 3 (operator of machine tools with numerical control, mechanical locksmith, etc.)

Projects developed with European funds

In order to become more competitive in terms of productivity, quality, customer satisfaction, conservation of resources and the environment, investment in human capital will continue to increase, including by attracting European funds or other sources.

So far, COMPA has implemented or is implementing projects designed to develop the skills of its employees, projects that aim to facilitate the transition from school to active life of pupils and students..

Sustainable school-enterprise partnerships

The company's partnerships with technical and vocational university institutions in Sibiu date back to the 70s with the establishment of the Institute of Higher Education, currently the Faculty of Engineering "Hermann Oberth" and IPAS High School, now the Technological High School "Henri Coandă".

The proximity of university and vocational education institutions is part of COMPA's policy to train future generations of specialists, to develop the employment capacity of young people, facilitating the transition from school to active life through internship programs, masters, private scholarships and more. .

The partnerships are mainly aimed at involving COMPA in two areas related to improvement:

  • Theoretical training through contributions to the adaptation of the university curriculum and the adaptation of the curriculum in local development to the needs of the employer;

  • Practical training by ensuring the access of pupils and students to modern work environments, to highperformance technologies and equipment, to the knowledge and understanding of the processes developed on the production lines.

COMPA and dual education

COMPA throughout its existence for over 135 years has been permanently based on vocational education being one of the companies that anticipated the need to implement the dual education system. The beginnings of dual education in COMPA was in 2005 with the commissioning of the Vocational Training Center, a modern technical platform equipped with numerically controlled machines and which was made available to the Technological High School "Henri Coandă", a high school with which we still have partnerships since its establishment.

Every year, a number of approximately 55 students attended the machine tool operator courses with numerical control and mechatronist who studied in a traditional educational system but with many dual elements: internships, laboratories, scholarships, various financial benefits. (payment of dormitory, meal, transport, school supplies) and job offers for all graduates.

The campaigns to promote the educational offer and the benefits brought by the dual education in which COMPA participated together with the "Henri Coandă" Technological High School in a sustained way materialized in the constant attraction of the students to the professional and technical education.

Risks identified in the Human Resources activity

In COMPA, there are ongoing coordinated actions for the direction and control of the organization regarding risks in all areas and at all levels.

Regarding the activity of human resources, in the previous year the following risks were identified that could determine the non-fulfillment or defective fulfillment of the process of insurance with human resources:

  • temporary lack of qualified staff for certain activities, either due to lack of supply on the labor market and non-correlation of educational supply with labor market requirements, or due to emergencies (mass illnesses, quarantines, earthquakes, floods, etc.);

  • high staff turnover due, mainly, to the incomplete identification of employees' motivation needs and the salary not correlated with the local labor market;

  • competences of the staff below the level required for serving the job, due to the educational offer not correlated with the market requirements as well as due to the non-observance of the stages of the training process;

  • corruption in the process of staff recruitment, selection and employment.

The potential effects of the identified risks can be, mainly: delays in the activity of the workshops, respectively delays in the delivery of the products to the clients as well as inadequate quality of the works performed by the employees.

Therefore, for the risks with high criticality, ie with high probability of occurrence or with significant impact on the company's activity, a series of measures have been taken, such as:

  • involvement in the development of local technical education by providing resources for dual system education and for technological, high school education;
  • apprenticeship programs for new employees;
  • effective internships for pupils and students;
  • qualifications / requalifications / post-secondary school;
  • career management; succession management for key positions;
  • implementation of telework;
  • restricting staff mobility by transferring activities to the online environment;

Opportunities identified in the Human Resources activity

Regarding the opportunities identified in the process of securing human resources, they are:

  • the existence of the COMPA Vocational Training Center, whose mission is to align with European training standards and which ensures professional qualification and retraining, the promotion of modern training techniques and methods as well as the development of the school-enterprise relationship. Training through the Vocational Training Center aims to reduce the integration period of new employees, the rapid accumulation of skills and experience, increase the performance of practical training, knowledge and adaptation to the industrial environment.

  • involvement in correlating the educational offer with the requirements of the labor market. COMPA, through the Management Director, is a member of the Local Committee for the Development of the Sibiu Social Partnership, a committee that deals with the administrative organization and policies in the field of vocational education and training. In this capacity, COMPA is actively involved in the development of annual schooling plans for vocational and technical education, in facilitating the conclusion of agreements for the practical training of students, promoting actions aimed at the transition from school to work, for socio-professional integration and in the elaboration and implementation of projects for the development of vocational and technical education at national / regional / county level;

5.5. QUALITY - ENVIRONMENT

. The integrated quality, environment and occupational health and safety policy of COMPA S.A.

Quality, environmental protection, health and safety at work are among the values we care about, being integrated into the long-term development strategy of our organization and are some of the aspects that represent us.

We are aware that both the quality of products and services, care for the environment, continuous improvement of working conditions and prevention of occupational hazards and involvement in the life of the community to which we belong, in full compliance with the requirements of applicable law, are essential for our success. .

By virtue of these things, for their implementation, the important directions in which we act are the following:

5.5.1. Climate impact

  • We are committed to ensuring carbon footprint neutrality in energy supply and production
  • We make continuous efforts to reduce the carbon footprint caused by the products we supply, our logistics processes and the products we sell

5.5.2. Energy consumption

  • Our organization has an extensive program to improve energy efficiency aimed at reducing energy consumption
  • We are engaged in a program to diversify energy production with the aim of increasing the share of renewable energy;

5.5.3. Resources management

  • Our program to reduce costs is to focus finding solutions to reduce consumption of raw materials directly impact the type and quantity of waste generated
  • We are committed to the continuous improvement of wastewater treatment methods and the reduction of pollutants discharged into industrial water
  • We have a firm commitment to the continuous improvement of technologies that allow the capture and reduction of the amount of gases emitted into the atmosphere

  • The best possible management of various types of waste is at the heart of our concerns to improve internal processes

5.5.4. The quality of products

Suntem angajați în continua perfecționare a proceselor noastre interne și a serviciilor asociate astfel încât sa asigurăm permanent o calitate cât mai ridicată a produselor cu impact direct asupra creșterii satisfacției clienților și reducerii impactului asupra mediului prin reducerea cantității de rebuturi si deșeuri generate.

5.5.5. Health and safety

  • We are engaged in the continuous improvement of employee labor protection systems, with the main objective of continuously reducing the number of accidents and incidents at work
  • We invest significant resources in the protection of the personal data of our employees and partners as well as in the protection of confidential information
  • We apply the highest standards of work ethic and human rights
  • In order to effectively manage the prohibitions and restrictions imposed on hazardous materials and substances, we are constantly updating the information on these materials in the global IMDS (International Material Data System).

5.5.6. Partnership with the community

We have an active involvement in community life by supporting initiatives related to education, sports and environmental protection.

5.5.7. Considerations regarding management systems

Our organization is certified according to the following standards for management systems, with reference to quality, environment and health and safety at work:

  • IATF 16949: 2016: quality management system for the automotive industry;
  • ISO 9001: 2015: quality management system for general industry (non-automotive);
  • ISO 14001: 2015: environmental management system;
  • ISO 45001: 2018: occupational health and safety management system;

The internal performance on compliance with the requirements of the standards, of the last three years (last certification cycle), resulting from the internal system audits, is presented below (no notable events occurred):

For the year 2018:

Management
system
Target / objective Achieved
IATF 16949:2016 92,5% 93,8%
ISO 9001:2015 92,5% 93,8%
ISO 14001:2015 95,0% 95,6%
ISO 45001:2018 95,0% 99,0%

For the year 2019:

Management
system
Target / objective Achieved
IATF 16949:2016 92,5% 96,2%
ISO 9001:2015 92,5% 96,2%
ISO 14001:2015 95,0% 95,0%
ISO 45001:2018 95,0% 94,0%

For the year 2020:

Management
system
Target / objective Achieved
IATF 16949:2016 92,5% 96,2%
ISO 9001:2015 92,5% 96,2%
ISO 14001:2015 95,0% 95,0%
ISO 45001:2018 95,0% 94,0%

For the year 2021, S1:

Management
system
Target / objective Achieved
IATF 16949:2016 93,0% 95,4%
ISO 9001:2015 93,0% 95,4%
ISO 14001:2015 95,5% 94,0%
ISO 45001:2018 95,5% 95,0%

Comparative situation H1 2020 vs. H1 2021:

In April 2021, a third-party audit was performed to recertify COMPA S.A. on all four systems, for a new three-year cycle, with the aim of maintaining the current certification and extending it to new product categories. As a result, all four management systems were reconfirmed as effective and efficient, so they were recertified for a new 3 year cycle.

5.5.8. Global environmental performance COMPA S.A..

t the company level, the management of actions taken to protect the environment are monitored through an indicator called the global environmental performance indicator which is calculated based on environmental management performance (provides information on management efforts to influence the environmental performance of the organization) and of environmental operational performance (which provides information on the operational results of the environmental performance of the organization's activities).

In recent years there are notable performances in this field, the level of the indicator being 97.5% in 2018, 97.6% in 2019. In 2020 there was a decline, its value being 93.92% , due to the difficult international situation caused by the Coronavirus pandemic. The situation has re-entered the normal phase starting with 2021 so the IGM calculated in the first semester of 2021 is 98.95%

The evolution of the global environmental performance indicator in the last 4 years is presented in the graph

below:

It is also worth mentioning that in the first half of 2021 there were no penalties for non-compliance with environmental compliance obligations

5.6. RISK MANAGEMENT

Risk management is an activity that must be performed by each economic agent, permanently to make immediate decisions, at which time the potential risks must be analyzed as well as the measures designed to mitigate their effects..

5.6..1. Risks related to sales activity

It is an important field of COMPA's activity and therefore from the bidding process all the risks that may arise are analyzed, such as:

  • offering and hiring new medium and long term projects to the traditional clients of COMPA, strong multinational companies with financial power and support worldwide;
  • the submission of competitive offers for partners, in order to guarantee the award of projects, especially at COMPA workshops where there are available capacities
  • the improvement of the quality assurance system, as well as of the quality level of the products made for the elimination or diminution of the situations of qualitative refusal of the sold products;
  • Improving the logistics system in COMPA to ensure the reduction of the stock of finished products and to eliminate the risks of delayed delivery to customers.

5.6.2. Credit risk

During H1 2021, the level of credit lines committed through the contracts concluded with the two banks (ING Bank and BRD Groupe Societe Generale) were accessed below 50% of the contracted level. The repayment of the investment loan has started

There was a positive situation generated by the fact that the company's own resources, from the depreciation of the machines and equipment included in the price, as well as by the net profit obtained, were not used in full. The surplus of resources was used to repay the credit lines, while also ensuring a lower access to the contracted credit lines, throughout the year.

Under these conditions, during 2021 there were no risks related to loans contracted with banks.

5.6.3. Insolvency risk

And in H1 2021 this risk category was not felt in the activity of COMPA. Measures have been taken at the level of the company's management to increase the solvency level, eliminating any risk related to entering solvency.

The current liquidity of the company was monitored month by month, the decision makers being permanently informed of the evolution of this indicator.

The measures taken for this purpose in COMPA to reduce and even eliminate the risk of insolvency were:

  • ensuring a high degree of profitability despite our customers' request to reduce prices every year due to the increase in labor productivity and the effects of the pandemic;

  • increasing the level of business by assimilating new products in manufacturing;

  • analysis and evaluation of the partners to whom offers are sent, eliminating the situation of entering the business with companies with a high degree of risk and offering mainly to prestigious companies, without financial risks;

  • delivery to new or lesser-known customers, only on the basis of payment instruments provided at the time of delivery (CEC, promissory note) or even advance payment.

5.6.4. Currency risk

During H1 2021 there were no moments with very high volatility on the foreign exchange market. The COMPA company has a surplus of currency (Euro) because most deliveries are made in the European Union, as well as credit lines are also denominated in foreign currency. There were no foreign exchange risks with a major impact on the company's financial activity..

5.6.5. Investment risk without coverage

Without an objective in this regard, during H1 2021 the level of investments was lower than in previous years.

Therefore, the financial resources to support the process of development and renewal of machinery and equipment were not fully consumed, some of these resources were used to repay the lines of credit contracted for working capital.

In this situation, this risk did not manifest itself at all. Knowing the trends of changing the structure of car production in the future, by reducing the share of diesel cars, it is necessary to analyze very well the areas of investment in the future, investment spending and resource provision must be focused for those future projects especially on car component manufacturing. on gasoline, hybrid or electric.

5.6.6. The risk of theft

The theft phenomena from COMPA's patrimony were almost completely eliminated.

The entrance and exit control measures on the company's gates, supported by a system and an extensive network of surveillance cameras, had positive effects in combating the risk of theft.

5.7. INVESTMENTS, NEW PRODUCTS AND RESEARCH-DEVELOPMENT ACTIVITY

5.7.1. INVESTMENTS

In the investment activity, funds were used for:

  • purchase of equipment;
  • modernization of existing equipment and installations;
  • arrangements of some production spaces.

The funds necessary for the development of the investment activity in the amount of 14,993,116 lei on H1-2021 were provided from own sources and from European funds. The economic effects through the purchase of new equipment and technological lines are:

  • increasing labor productivity;
  • reduction of repair costs;
  • improving the technological flow;
  • increasing the quality of manufactured parts and reducing scrap;
  • reduction of energy consumption;
  • increasing the precision of parts processing;
  • increasing the safety in operation of the equipment;
  • reducing non-quality costs;
  • increasing the efficiency of the activity through efficiency, etc.

5.7.2. NEW PRODUCTS

The technical and research-development function in COMPA has as main objective the development of new products being deeply involved in actions of definition and adoption of the most efficient, technological processes so that the price offers presented by COMPA are as attractive as possible to win. as many projects as possible.

In this activity there are important requests for quotations for products specific to the manufacturing profile of COMPA. In this context, the concerns of recent years are aimed at offering non-diesel or even non-automotive products, to ensure a portfolio of new products, diversified, less vulnerable to profound changes in recent times, in the automotive field and beyond.

These are the reasons why COMPA focused its concerns, and for the execution of complex components in the field of machine tool manufacturing. The business partnership with one of the main players in the machine tool industry - DMG Mori is a good start in order to enter this market of non-automotive products. The transition to the realization of complex products in the field of machine tools, respectively to the manufacture of booths for numerically controlled machines delivered to machine tool manufacturers, (products with high added value) is a positive element, promising in business development in this new field for COMPA.

New products whose series production started in 2020 which continued in Sem.1 2021

During Sem.12021, the assimilation in manufacturing of the new products for which the necessary production capacities were ensured was continued, with an impact on production in the following years as well.

Among these products we mention:

    • injection pump body for VW, PSA, Renault and FCA type cars;
  • Valves for steering systems

  • Nut head and Nozzle for EURO 7 injectors

Nut head Nozzle Euro 7

There are other new products with the prospect of manufacturing these in the medium and long term in the field, such as sprockets for steering boxes, mechanically-welded subassemblies, stamped-stamped parts, springs, etc..

5.7.3. RESEARCH-DEVELOPMENT ACTIVITY

A R&D Center has been set up in Compa since 2019, laying the foundations for the realization of products that will complete the range of products of a high technical and qualitative level.

Also, in this Research-Development Center, new projects and processes are carried out with applicability both within the company, but also projects with advanced technology that can be made available to other companies.

The evolution of research and development expenditures in H1 2021, compared to H1 2020 is presented below:

INDICATOR 30.06.2020 30.06.2021
Research and development expenses 6.68 7.71
Turnover 235.51 368.25
Weight (row 1 / row 2) x 100 2.84 2.09

We mention that these R&D Expenses include:

  • applied research expenses incurred within the Research Center realized from European funds and from COMPA own resources.

  • the costs of developing new products, the costs of constructive and technological design, including those costs of monitoring new products and processes, until the transition to their mass production.

  • expenses incurred by specialists in the technical field of COMPA, which performs technological design operations in order to develop price quotations, including those quotations that for various reasons do not result in a nomination of the company by customers.

6. CAPITAL MARKET

The company's shares have been traded since June 1997 on the regulated market administered by the Bucharest Stock Exchange. The nominal value of a share is 0.10 lei.

The main characteristics of the issued securities: 218,821,038 registered shares, ordinary, of equal value, fully paid, issued in dematerialized form and highlighted by registration in the Register of Shareholders managed by Depozitarul Central S.A. Bucharest. COMPA is registered with the ISIN code ROCMPSACNOR9, CMP stock symbol, in the Standard category.

The variation of the average selling price and of the number of shares traded in H1 – 2021

6.1. Regarding the distribution of dividends to COMPA shareholders for the financial year 2020

The privatization of COMPA opened important perspectives and the opportunity for the company's development.

After 2020, COMPA's main objective was to establish partnerships with prestigious companies in the automotive industry, a field in which it had the necessary expertise.

In this context, collaboration relations were started and established with the companies Krupp, Piroux, Honeywell - Garrett, Bosch, Delphi, Koyo (today Jtekt) Fuji Kiko, Douglas, etc., for which COMPA became a supplier of components.

COMPA was equipped with machines and equipment with a high degree of physical and moral wear. It was necessary to carry out a long-term development program for the rehabilitation of existing halls and especially for the purchase of state-of-the-art machinery and equipment.

Therefore, annually the company COMPA has made significant investment expenditures both from its own sources and from loans to finance this development program. This was the reason why COMPA has not distributed dividends for 15 years, the net profit being distributed exclusively for the development of the company.

In the OGMS meeting of 22.04.2021, the amount of 2,803,856.15 lei was approved for the distribution of dividends, with a gross dividend per share of 0.0132 lei

6.2. Acquisition of own shares

In the financial year 2019, the OGMS at the proposal of the Board of Directors approved the redemption program of its own shares, amounting to 3.89 million lei.

Starting with 13.08 2020, the Company started the redemption program of its own shares, in accordance with EGMS decision 18 and 19 of 27.04.2020.

A number of 6,407,697 shares were repurchased in a total value of 3,825,709.95 lei, resulting in a loss related to the repurchase of own shares amounting to 3,184,940.25 lei.

6.3. Relationship with shareholders and investors

Shareholders / investors can obtain information about COMPA and the main events on the website www.compa.ro

COMPA intends to ensure the rights of shareholders to participate in General Meetings directly or by representation by providing them with special / general powers of attorney, ballot papers by mail, other useful information, to have a fair treatment, regardless of their holdings.

In relation to the capital market, the company fulfilled all the reporting obligations that flowed from the legal provisions by publishing the mandatory continuous and periodic reports in the electronic system of the Financial Supervision Authority and the Stock Exchange as well as on the company's website.

According to the provisions of the Corporate Governance Code, the continuous and periodic information was disseminated simultaneously, both in Romanian and in English..

6.4. Aspects regarding the capital and management of the company

COMPA has not been unable to meet its financial obligations.

There were no major transactions entered into by the company with the persons with whom it acts in concert or in which these persons were involved during the relevant period of time..

6.5. Company-parent relationship and affiliated companies

The parent company COMPA prepares and publishes consolidated financial statements in accordance with the applicable accounting regulations, for the financial year ended 31.12.2020.

In this context, the parent company COMPA has control, respectively the share of its participations in the share capital of the affiliated companies is higher than 50% in the following affiliated entities.:

7. MANAGEMENT OF THE COMPANY

7.1. Board of Directors

In the Ordinary General Meeting of Shareholders of 22.04.2021, the Board of Directors was revoked and a new one was elected, at the request of significant shareholders, for a term of four years consisting of the following members:

NAME AND FIRST NAME FUNCTION
DEAC Ioan Administrator Chairman . / CEO
MICLEA Ioan Administrator Vice President / CFO
MAXIM Mircea Florin Administrator
BALTEŞ Nicolae Administrator./ Chairman of the Audit Board
NEACŞU Vlad- Nicolae Administrator / Audit Committee Member

Mr. Ioan DEAC - the president of the Board of Directors and Mr. Ioan MICLEA - vice president of the Board of Directors, also holds executive positions within COMPA, respectively General Manager (CEO) and Economic Director (CFO)

Ioan DEAC - Engineer - Bachelor's Degree in Machine Building Technology - Cluj Polytechnic Institute - Faculty of Mechanics.

Ioan MICLEA - Economist - Bachelor's Degree in Economics - Babes Bolyai University Cluj Napoca.

Mircea Florin MAXIM - Engineer - Bachelor's Degree in Economic Engineering - University of Agronomic Sciences and Veterinary Medicine Bucharest.

Nicolae BALTEŞ - Economist - Bachelor's Degree in Economics, specialization Finance-accounting - Bucharest Academy of Economic Studies, Faculty of Finance-Accounting.

Vlad Nicolae NEACŞU - Diploma in Management - Bucharest Academy of Economic Studies. management College

Lista membrilor conducerii executive a Societăţii şi directorii pe funcţiuni:

NAME AND FIRST NAME FUNCTION
DEAC Ioan Chairman . / CEO
MICLEA Ioan Vice President / CFO
FIRIZA Ioan Director Organizational Management and HR
BĂIAŞU Dan-Nicolae Commercial Director
ACU Florin-Ştefan Technical Director
MUNTENAŞ Bogdan-Vasile Logistics Director
ŢUICU Liviu-Laurenţiu Quality - Environment Director
HERBAN Dorin - Adrian Director Management Systems and Improvement
ŢUŢUREA Mihai Production Director
FIRIZA Sorin Ioan DeputyProduction Director
DRAGOMIR Marius C-tin Chief Maintenance Engineer

7.2. Audit Committee

In accordance with the updated Law no. 31/1990, the Audit Committee comprises members who have the necessary specialized knowledge in the field of financial audit and accounting. The Audit Committee, composed of two members of the Board of Directors, provided support to COMPA's governing bodies in terms of internal control and financial reporting. The two members of the Audit Committee are: Mr. Nicolae BALTEŞ - chairman and Mr. Vlad Nicolae NEACŞU member.

8. SIGNIFICANT TRANSACTIONS

During H1 2021, the company COMPA did not carry out major transactions either with the affiliated companies within the Group of which it is part or with other companies holding participations in the share capital of the company COMPA.S.A.

Entities affiliated to COMPA S.A. Sibiu were formed over time, as a result of the need to outsource from COMPA S.A. of specific activities such as: software design, domestic and international car transport, public catering, etc., outsourcing carried out to streamline these activities as well as to benefit from some facilities granted by the state to certain activities (IT activity; transport licenses, etc. .).

Most transactions, contracts with these affiliates represent the provision by COMPA (owner of special and specific facilities), utilities such as: electricity, heat, drinking water, telephone services, compressed air, space rental and equipment necessary for the activity as well as contracts for the supply of goods and services.

On the other hand, these affiliates provide to COMPA goods and services which constitute their object of activity and for which outsourcing has been imposed.

The relations took place in commercial terms of the free market, their price being agreed by negotiation, within the levels practiced on the market.

The transactions performed in the first 6 months of 2021 with the affiliated companies are highlighted in the table below:

realized on
No.
Data
Penalties
Seller
Buyer
Contract object
30.06.2021
contract
contract
(per day)
RON (excl
VAT)
Payment
term
Space rental
4
01.06.2006
COMPA SA
COMPA-IT SRL
10,800
0.02%
60 days
Fixed assets for rent
1
01.06.2006
COMPA SA
COMPA-IT SRL
480
0.02%
60 days
Supply and distribution
-
01.01.2005
COMPA SA
COMPA-IT SRL
1,938
0.02%
of thermal energy
60 days
Electricity supply
-
01.01.2005
COMPA SA
COMPA-IT SRL
3,553
0.02%
60 days
Drinking and industrial
-
01.01.2005
COMPA SA
COMPA-IT SRL
1,952
0.02%
water supply
60 days
Provision of telephone
15
08.01.2007
COMPA SA
COMPA-IT SRL
488
0.02%
services
60 days
Provision of materials
comenzi
-
COMPA SA
COMPA-IT SRL
948
0.02%
ocazionale
and services
60 days
6
01.06.2006
COMPA SA
TRANS CAS SRL
Space rental
87,000
0.02%
60 days
3
01.06.2006
COMPA SA
TRANS CAS SRL
Fixed assets for rent
60,000
0.02%
60 days
Electricity supply
-
01.02.2005
COMPA SA
TRANS CAS SRL
4,562
0.02%
60 days
Supply and distribution
-
01.02.2005
COMPA SA
TRANS CAS SRL
30,463
0.02%
60 days

8.1. CONTRACTS CONCLUDED BY COMPA WITH AFFILIATED ENTITIES -30.06.2021

SEPARATE REPORT H1 - 2021

No.
contract
Data
contract
Seller Buyer Contract object Value
realized on
30.06.2021
RON (excl
VAT)
Penalties
(per day)
Payment
term
of thermal energy
- 01.02.2005 COMPA SA TRANS CAS SRL Drinking and industrial
water supply
6,045 0.02% 60 days
16 08.01.2007 COMPA SA TRANS CAS SRL Provision of telephone
services
4553 0.02% 60 days
7003 08.01.2007 COMPA SA TRANS CAS SRL Sale of materials and
finished products
12,274 0.02% 60 days
7004 08.01.2007 COMPA SA TRANS CAS SRL Cardan repair,
metrology, other
services
3,410 0.02% 60 days
5 01.06.2006 COMPA SA RECASERV SRL Space rental 0 0.02% 60 days
2 01.06.2006 COMPA SA RECASERV SRL Fixed assets for rent 0 0.02% 60 days
- 01.01.2005 COMPA SA RECASERV SRL Supply and distribution
of thermal energy
0 0.02% 60 days
- comenzi
ocazionale
COMPA SA RECASERV SRL Provision of materials
and services
1,511 0.02% 60 days
32 21.12.2020 COMPA SA ARINI HOSPITALITY
SRL
Space rental 4,413 0.02% 60 days
39A 19.01.2021 COMPA SA ARINI HOSPITALITY
SRL
Active transfer 678146 0.02% 60 days
ocazional COMPA SA ARINI HOSPITALITY
SRL
Re-invoicing expenses 0 0.02% 60 days
2011 15.11.2005 COMPA-IT
SRL
COMPA SA Software and
maintenance services
1,208,660 0.02% 60 days
715 16.07.2009 TRANS CAS
SRL
COMPA SA Provision of domestic
and international
transport services of
goods and persons
7,317,401 0.02% 60 days
- 01.07.2004 RECASERV
SRL
COMPA SA Provision of kitchen
catering services, buffet
bar. Protocol. Special
food
83,252 0.02% 60 days
- 01.03.2006 RECASERV
SRL
COMPA SA Cleaning and sorting
services
451,783 0.02% 60 days

8.2. Reciprocal receivables with affiliated entities 30.06.2021

Receivables from COMPA S.A. from lei
TRANS C.A.S. S.R.L. 851,280
COMPA-IT S.R.L. 3,492
RECASERV S.R.L. 0
ARINI HOSPITALITY S.R.L. 2,635
Debts to be paid by COMPA S.A. by: lei
TRANS C.A.S. S.R.L. 4,206,137
COMPA-IT S.R.L. 926,538
RECASERV S.R.L. 344,547
ARINI HOSPITALITY S.R.L. 0

9. SEPARATE INTERIM FINANCIAL REPORT ON H1 2021

9.1. DECLARATION OF CONFORMITY OF THE SEPARATE INTERIM FINANCIAL STATEMENT

STATEMENT OF THE BOARD OF DIRECTORS

in accordance with the provisions of art. 30 of the Accounting Law no. 82/1991

The separate interim financial report was prepared on 30.06.2021 for:

Entity COMPA S.A.
County 32 Sibiu
Registered office Sibiu, No. 8, Henri Coandă street, Sibiu County, postal cod 550234
Registration number in the
Trade Registry
Property form
J32/129/1991
34 Companies stock
Predominant activity
(CAEN code and class name)
2932 - Manufacture of other parts and accessories for motor vehicles
VAT No RO 788767

he undersigned Ioan MICLEA,

Having the quality of Economic Director, according to art. 10 paragraph (1) of the Accounting Law no. 82/1991, I assume the responsibility for the preparation of the half-yearly financial reports on 30.06.2021 and I confirm the following:

a) The accounting policies used in preparing the half-yearly financial reports are in accordance with the applicable accounting regulations.

b) The half-yearly financial reports provide a true and fair view of the financial position, financial performance and other information relating to the activity carried out.

c) The legal person carries out its activity in conditions of continuity.

Vicepresident & CFO,

Ioan MICLEA

9.2. SEPARATE INTERIM FINANCIAL REPORT AT 30.06.2021

SEPARATE SITUATION OF THE FINANCIAL POSITION ON 30.06.2021

(all amounts are expressed in lei, unless otherwise specified)

Note 30.06.2021 31.12.2020
Assets
Fixed assets:
Tangible fixed assets 4,1 408.706.341 417.180.412
Real estate investments 4,2 53.312.788 68.319.588
Intangible assets 5 8.904.583 8.672.020
Other receivables (Subsidies and settlements from joint
operations) 6 730.215 1.224.822
Other fixed assets 7 118.459 117.439
Financial investments 20 20.715.500 1.768.450
Deferred tax receivables 10 1.151.459 1.745.106
Fixed assets - total 493.639.346 499.027.837
Current assets:
Stocks 8 110.599.061 91.495.293
Trade and other receivables 6 159.385.084 139.114.757
Other receivables (Subsidies and settlements from joint
operations) 6 1.688.607 2.193.152
Cash and cash equivalents 9 1.709.130 887.887
Current assets - total 273.381.882 233.691.089
Total Assets 767.021.228 732.718.926
Equity :
Capital issued 11 21.882.104 21.882.104
Share capital adjustments 11 -640.770 -185.428
reserves 11 371.958.522 374.127.963
Reserve adjustment 23.122.057 23.122.057
Reported result 11 65.886.960 65.483.604
The current result 11 17.422.664 13.919.766
Distribution of profit
Equity - total 11 0
499.631.538
-10.712.555
487.637.511
Debts
Long debts :
Financial debts 12 83.349.084 80.817.900
Advance income (advance income, subsidies) 13 28.046.219 29.202.849
Provisions 14 135.645 135.645
Long debts - total 111.530.949 110.156.394
Current debts:
Financial debts 12 14.222.647 12.118.166
Trade and similar debts; 13 113.909.629 98.789.732
Debts from contracts with clients 13 8.855.569 3.408.686
Other debts 13 13.092.150 13.047.416
Current tax liabilities 10 1.562.695 894.988
Advance income (advance income, subsidies) 13 4.216.051 6.666.033
Current debts - total 155.858.741 134.925.021
Total debts 267.389.690 245.081.415
Total equity and debts 767.021.228 732.718.926

SEPARATE SITUATION OF PROFIT OR LOSS AND OTHER ELEMENTS OF OVERALL RESULT AT 30.06.2021

(all amounts are expressed in lei, unless otherwise specified)

Nota 30.06.2021 30.06.2020
Incomei 15 368.249.013 235.513.230
Oyher Income 15 8.319.624 5.994.693
Total Income 376.568.637 241.507.923
Variation of stocks of finished products and production in
progress 16 797.122 -6.035.742
Raw materials and consumables used 16 -240.212.832 -143.279.968
Expenses with employee benefits 17 -72.396.736 -52.462.489
Depreciation and amortization expenses 4,5,16 -21.384.997 -25.419.780
Services provided by third parties 16 -17.148.440 -12.219.745
Other expenses 16 -4.527.668 -4.093.574
Total expenses -354.873.550 -243.511.297
Operating result 21.695.086 -2.003.374
Financial income 18 1.308 7.093
Financial expenses 18 -637.562 -544.354
Other financial gains / losses 18 -216.678 -1.499.927
Net financing costs -852.933 -2.037.189
Profit before tax 20.842.153 -4.040.563
(Expenses) / Deferred income tax income 10 -734.844 -14.504
Current income tax expense 10 -2.684.645 0
Net profit for the period 17.422.664 -4.055.067
Other elements of the overall result:
Of which other items of comprehensive income that will not
be subsequently reclassified to profit or loss:
Income tax related to other elements of the overall result
10 141.197 147.044
Other income from comprehensive income, net of tax 141.197 147.044
Total overall result for the year 17.563.861 -3.908.023
Unbound result on basic / diluted stock 19 0,08 -0,02

SEPARATE SITUATION OF CHANGES IN EQUITY FOR THE YEAR ENDED 30.06.2021

(all amounts are expressed in lei, unless otherwise specified)

Equity element Share
capital
Share
capital
adjustments
Legal
reserves
Legal
reserves
adjustments
Reserve
reevaluare
Other
reserves
Other
reserves
adjustments
Reported
result
Total
Balance at
01.01.2020
21.882.104 0 4.376.421 22.679.066 83.891.130 271.841.113 442.991 69.374.383 474.487.208
Profit of the year 13.919.766 13.919.766
Other elements of the overall result, of which: 0 0 0 0 0 -584.035 0 0 -584.035
Losses related to the redemption of own shares -874.303 -874.303
Income tax related to other elements of the
overall result
290.268 290.268
Profit distribution 0 14.603.334 -14.603.334 0
Balance at
31.12.2020
21.882.104 -185.428 4.376.421 22.679.066 83.891.130 285.860.412 442.991 68.690.815 487.637.511
Element al capitalului propriu Share
capital
Share
capital
adjustments
Legal
reserves
Legal
reserves
adjustments
Reserve
reevaluare
Other
reserves
Other
reserves
adjustments
Reported
result
Total
Balance at01.01.2021 21.882.104 -185.428 4.376.421 22.679.066 83.891.130 285.860.412 442.991 68.690.815 487.637.511
Profit of the year 17.422.664 17.422.664
Other elements of the overall result, of which: 0 0 0 0 0 -2.169.439 0 0 -2.169.439
Losses related to the redemption of own shares -2.310.636 -2.310.636
Income tax related to other elements of the
overall result
141.197 141.197
Transactions with shareholders, registered
directly in equity, of which:
0 -455.342 0 0 0 0 0 -2.803.856 -3.259.198
Repurchase of own shares -455.342 -455.342
Profit distribution 2020 on dividends 0 -2.803.856 -2.803.856
Balance at30.06.2021 21.882.104 -640.770 4.376.421 22.679.066 83.891.130 283.690.973 442.991 83.309.623 499.631.538

SEPARATE SITUATION OF CASH FLOWS AT 30.06.2021

(all amounts are expressed in lei, unless otherwise specified)

Explanations 30.06.2021 30.06.2020
Cash flows from operating activities:
Profit before tax 17.422.664 -4.040.563
Depreciation and amortization expenses 21.384.997 25.419.780
(Increases) / Decreases in stocks -19.103.768 17.948.271
(Increases) / Debt decreases -19.272.195 65.720.983
Increases / (Debt decreases) 21.279.221 -49.568.516
Adjust other non-monetary items -9.894.662 -1.889.472
Net cash generated from operations 11.816.257 53.590.483
Cash flows from investment activity:
Acquisitions of tangible assets and real estate investments -14.269.864 -54.533.505
Acquisitions of intangible assets -723.253 -1.318.975
Net cash generated from investment activities -14.993.117 -55.852.480
Cash flows from financial activity
(Increases) / Decreases in bank loans 4.635.665 -2.112.286
Interest rates -637.562 -544.354
Net cash generated from financial activity 3.998.103 -2.656.640
Net cash generated from total activity 821.243 -4.918.637
Cash and cash equivalents at the beginning of the period 887.887 6.079.821
Cash and cash equivalents at the end of the period 1.709.130 1.161.184

EXPLANATORY NOTES TO THE SEPARATE INTERIM FINANCIAL STATEMENT AT 30.06.2021

(all amounts are expressed in lei, unless otherwise specified)

1. GENERAL INFORMATION

COMPA is a joint stock company, headquartered in Sibiu. str.Henri Coandă no.8. CP 550234

1.1.Area of work

The main activity according to CANE is 2932 - Manufacture of other parts and accessories for motor vehicles and motor vehicles.

1.2.The form of ownership of the company

COMPA S.A. it has been 100% privatized since September 1999.

The company is listed on the stock exchange, the shares are traded on the Bucharest Stock Exchange since June 1997, and are currently traded on the Standard category, CMP symbol.

1.3. The company's evolution

By Government Decision no. 1296 / 13.12.1990 the company became Societatea Comercială COMPA S.A. coming from the Sibiu Auto Parts Company (I.P.A.Sibiu). I.P.A.Sibiu was founded in 1969 by the unification of two units:

Uzina Elastic and Uzina Automecanica Sibiu. Since 1991 COMPA has been organized in factories / workshops set up by product families as cost centers that over time have become profit centers in order to decentralize and facilitate the establishment of joint ventures.

2. BASICS OF PREPARATION

Declaration of conformity

The separate financial statements have been prepared in accordance with the International Financial Reporting Standards adopted by the European Union and with the Order of the Minister of Public Finance no. 2844/2016 The company adopted the reporting according to IFRS starting with the financial statements of 2012.

The principle of continuity of activity

The individual financial statements have been prepared based on the principle of business continuity, which means that the Company will be able to operate under normal conditions..

Basics of evaluation

The individual financial statements have been prepared based on historical cost. except for certain property, plant and equipment that is measured at revalued amount or fair value as explained in the accounting policies. The historical cost is generally based on the fair value of the consideration given in exchange for the assets.

Presentation currency and functional currency

The individual financial statements are presented in Romanian lei (RON). rounded to the nearest value. this being the functional currency of the Company.

Use of estimates and judgments

The preparation of individual financial statements in accordance with IFRSs adopted by the European Union involves the use of estimates by management. judgments and assumptions affecting the application of accounting policies as well as the reported value of assets. debts. income and expenses. Estimates and judgments are generally based on historical information and any other sources considered representative of the situations encountered. Actual results may differ from these estimates.

Estimates and assumptions are reviewed periodically. Revisions to accounting estimates are recognized in the period in which the estimate is revised and in future periods if they are affected.

Changing estimates does not affect previous periods and is not a correction of an error.

Information on critical judgments in the application of the Company's accounting policies. whose effect is significant on the amounts recognized in the financial statements are included in the notes on:

Tangible and intangible assets - The useful life of tangible assets

Tangible and intangible assets are depreciated over their useful lives. The management of the Company uses professional reasoning in determining the useful life. and the evidence used to determine it includes the technical specifications of the equipment. information from the commercial contracts that the company has concluded with customers. history of products sold. market information related to the company's products and the adaptability of the equipment.

Tangible and intangible assets - Adjustments for impairment of property, plant and equipment

Intangible and tangible fixed assets are analyzed to identify whether they show indications of impairment at the date of the financial statements. If the net book value of an asset is greater than its recoverable amount. an impairment loss is recognized in order to reduce the net carrying amount of the asset to its recoverable amount. If the reasons for recognizing the impairment loss disappear in the following periods. the net book value of the asset is increased to the level of the net book value. which would have been determined if no impairment loss

had been recognized. Evidence that can cause a depreciation includes a decrease in utility for society. excessive physical wear and tear. the emergence of new production technologies.

Deferred taxes

Deferred tax assets are recognized as an asset. to the extent that it is probable that there will be a taxable profit from which the losses can be covered. The Company's management uses professional judgment in determining the amount of deferred tax assets that can be recognized as assets.

The management's decisions are based on information from the commercial contracts that the Company has concluded with the clients. forecasts related to the car market and car components.

Provisions

Provisions are recognized when the Company has a current legal or implied obligation arising from a past event. it is likely that an outflow of resources incorporating economic benefits will be required to settle the obligation and a reliable estimate of the value of the obligation may be achievable. The amount recognized as a provision is the best estimate of the expense required to settle the current obligation at the end of the reporting period.

Recoverable amount of assets

The valuation for impairment of receivables is performed individually and is based on management's best estimate of the present value of the cash flows expected to be received. The company reviews its trade and other receivables at each date of the financial position. to assess whether to record a impairment loss in the income statement. In particular, the professional judgment of management is necessary for estimating value and for coordinating future cash flows when impairment losses are determined. An impairment loss is recognized if the carrying amount of an asset or a cash-generating unit exceeds its estimated recoverable amount. These estimates are based on assumptions about several factors. and the actual results may be different. leading to future changes in adjustments.

Fair value measurement of financial instruments

When the fair value of financial assets and liabilities reflected in the statement of financial position cannot be measured on the basis of prices quoted in active markets. their fair value is measured using valuation techniques. including the updated cash flow model. The assumptions in these models are taken from available market information. but when it is not possible. reasoning is required to determine fair value. Rationale includes determining assumptions such as credit risk and volatility.

3. SIGNIFICANT ACCOUNTING POLICIES

The separate financial statements have been prepared in accordance with International Financial Reporting Standards adopted by the European Union ("EU").

The significant accounting policies applied by the Company are those presented in the Financial Statements concluded on 31.12.2020 and have not changed during the interim report

4.1. TANGIBLE FIXED ASSET

The evolution of tangible assets from January 1, 2021 to June 30, 2021 is as follow::

Explanations Book value at la
30.06.2021
Book value at
01.01.2021
Lands 43.848.700 43.848.700
Constructions 83.171.260 86.092.732
Equipment and vehicles 237.269.831 212.928.875
Other tangible assets 488.487 516.779
Explanations Book value at la
30.06.2021
Book value at
01.01.2021
Corporal immobilizations taking course 43.928.063 73.793.326
Total 408.706.341 417.180.412

Tangible assets representing "Tangible fixed assets in progress" are measured at historical cost.

The company has chosen for the valuation of tangible assets of land and construction nature the model of revaluation at fair value.

In the fair value hierarchy, the revaluation of the company's buildings and land at fair value is classified as level 2 data.

The valuation technique used in the fair value measurement of level 2 is the price comparison method. Prices comparable to nearby buildings and constructions are adjusted according to specific characteristics, such as the size of the property, etc. The most important entry date for this valuation method is the price per square meter.

There were no transfers between the level at which the fair value measurements are classified during 2021.

Depreciation of all property, plant and equipment is determined by the straight-line method.

The fixed assets acquired from third parties in 2021 amounted to 7,817,849 lei, and the value of those realized under own management was 4,600,312 lei.

Fixed assets decreased in 2021 through depreciation and scrapping. The scrapped fixed assets were fully depreciated and had an inventory value of 1,784,142 lei.

4.2. REAL ESTATE INVESTMENTS

The evolution of real estate investments from January 1, 2021 to June 30, 2021 is as follows:

Explanations Book value at
30.06.2021
Book value at
01.01.2021
Real estate investments 50.130.384 58.429.296
Real estate investments under construction 3.182.404 9.890.292
Total 53.312.788 68.319.588

Real estate investments are valued at fair value. A gain or loss generated by a change in the fair value of the investment property is recognized in profit or loss for the period in which it occurs.

Fixed assets "Real estate investments in progress" are valued at historical cost.

In 2021, the company ARINI HOSPITALITY SRL was established, with a 100% Compa ownership. Real estate investments in book value of 8,298,912 lei, as well as real estate investments in execution in book value of 8,052,078 lei constituted a contribution in kind to the share capital of the newly established company.

The real estate investments in progress were also diminished by sale to the newly established company. The book value of the sold real estate investments was 507,512 lei. Real estate investments increased in 2021 through acquisitions from third parties - 1,844,832 lei and through own execution - 6,971 lei.

5. INTANGIBLE ASSETS

The intangible assets held by the Company represent computer programs and software licenses and research and development expenses that have met the conditions to be capitalized.

Their evolution was as follows:

Explanations Book value at
30.06.2021
Book value at
01.01.2021
Research and development expenses 4.573.153 4.714.181
Software and software licenses 4.331.430 3.957.839
Total 8.904.583 8.672.020

Intangible assets increased in 2021 through acquisitions from third parties - 723,253 lei. Intangible assets were reduced in 2021 by depreciation.

Their depreciation is determined by the straight-line method.

6. TRADE RECEIVABLES AND OTHER RECEIVABLES

The situation of other receivables held by the Company is as follows:

Explanations Book value at
30.06.2021
Book value at
01.01.2021
Trade receivables 142.947.489 129.289.280
Advances paid to suppliers 10.960.364 6.416.008
Receivables related to staff 19.821 42.388
Receivables in connection with the consolidated
state budget and the local budget
2.437.310 1.967.499
Different debitors 1.050.735 691.320
Prepayments 1.969.365 708.262
Subsidies receivable (European funds projects,
subsidies for staff costs)
2.418.822 3.417.974
Total 161.803.906 142.532.731

Receivables in foreign currency are valued in lei at the official exchange rate of the NBR on 30.06.2021

The situation of the adjustments for the depreciation of customer receivables is presented as follows:

Sold la 01.01.2021 138.064
Adjustments created in H1 2021 1.486
Reverse adjustments in H1 2022 -87.428
Sold la 30.06.2021 52.122

The situation of the adjustments for the depreciation of the uncollected debtors is presented as follows::

Sold la 01.01.2021 647.331
Adjustments created in H1 2021 88.482
Reverse adjustments in H1 2022 0
Sold la 30.06.2021 735.813

The Company's commercial policy requires the recording of impairment adjustments for receivables exceeding 365 days, except for those receivables registered with partners to which the Company is also indebted, the debts registering approximately the same seniority as uncollected receivables..

7. ALTE CREANTE IMOBILIZATE

Creantele imobilizate detinute de Societate nu au inregistrat modificari fata de inceputul anului 2021.

Explanations 30.06.2021 01.01.2021
Customs guarantee for customs clearance at the
headquarters
103.000 103.000
Other guarantees 15.459 14.439
Total other assets 118.459 117.439

8. STOCUR

Structura stocurilor detinute de Societate este prezentata in tabelul de mai jos:

Explanations 30.06.2021 01.01.2021
Raw materials 48.347.837 33.050.785
Packaging materials 28.232.575 25.155.961
Semi-finished parts and production in progress 24.014.110 23.703.476
Finished goods and merchandise 10.004.539 9.585.072
Total stocks 110.599.061 91.495.294

9. CASH AND CASH EQUIVALENTS

Disponibilitatile banesti si echivalentele de numerar se prezinta astfel:

Explanations 30.06.2021 01.01.2021
Conturi bancare in RON 1.526.906 596.592
Conturi bancare in valuta 166.741 281.573
Echivalente de numerar 496 171
Casa in RON 14.987 9.551
Total disponibilitati banesti si echivalente 1.709.130 887.887

The Company owns domestic and foreign currency accounts at the following banks: BRD Groupe Société Générale, BCR, RBS Bank, ING Bank, Treasury

9. PROFIT TAX

The tax for the current Company profit is determined based on the statutory profit, and adjusted for nondeductible expenses and non-taxable income at a rate of 16%.

On June 30, 2021 and June 30, 2020, the income tax consists of:

Explanations 30.06.2021 30.06.2020
Current income tax expense -2.684.645 0
Deferred income tax expense / income -734.844 -14.504
Total profit / income / specific tax -3.419.489 -14.504

11 CAPITALURI PROPRII

The shareholding structure on 30.06.2021 is as follows:

Explanations Number of Shares % of total share
capital
Deac Ioan 41.585.887 19,0045
Miclea Ioan 41.042.480 18,7562
Romanian and foreign shareholders (individuals / legal) 136.192.671 62,2393
Total number of shares 218.821.038 100,0000

The Company's shares have a nominal value of 0.1 RON / share. Since June 1997, the Company's shares are traded on the Bucharest Stock Exchange, and since July 2001 it is listed on the standard category.

The Compa's equity includes the following:

Explanations 30.06.2021 01.01.2021
Subscribed and paid-in capital 21.882.104 21.882.104
Own actions -640.770 -185.428
Losses related to the redemption of own shares -3.184.939 -874.303
Revaluation reserves 83.891.130 83.891.130
Legal reserves 4.376.421 4.376.421
Adjustment of legal reserves 22.679.066 22.679.066
Other non-distributable reserves - redemption of own shares 3.890.000 3.890.000
Other reservations 288.631.704 288.631.704
Adjust other reserves 442.991 442.991
Current and deferred income tax recognized on account of equity -5.645.792 -5.786.989
Retained earnings representing the surplus realized from revaluation
reserves
57.804.936 57.804.936
Reported result 0 0
Deferred income from the first adoption of IAS, less IAS 29 29.144 29.144
Retained earnings from the transition to IFRS, less IAS 29 8.611.538 8.611.538
Deferred income from changes in accounting policies 89.693 89.693
Reported result from the correction of accounting errors 0 -403.355
Deferred income from the first adoption of IAS 29 -648.352 -648.352
Profit this year 17.422.664 13.919.766
Distribution of profit 0 -10.712.555
Total equity 499.631.538 487.637.511

On 27.04.2020, the GMS approved a plan for the redemption of its own shares in the amount of 3,890,000 lei. The maximum pecuniary value allocated to the program: 3,890,000 lei, excluding brokerage commissions and other acquisition costs.

The payment of the repurchased shares will be made, according to the provisions of art.1031 of law 31/1990, from the distributable profit of the Group, entered in the financial statement for 2019. Duration of the program: 18 months from the date of publication of the decision in the Official Gazette of Romania part IV.

Purpose: The shares will be redeemed for free distribution to the members of the Group's management. Until 30.06.2021, 6,407,697 shares were redeemed, as follows::

  • -nominal value of redeemed shares: 640,769.70 lei
  • -total redemption value of shares: 3,825,709.95 lei, resulting:
  • -loss related to the redemption of own shares in the amount of 3,184,940.25 lei

12. FINANCIAL DEBTS

Long-term and short-term financial debts are as follows:

EUR
Institutie de credit Tip imprumut 30.06.2021 01.01.2021
BRD GROUP SOCIETE Credit line for production 2.472.809 1.745.991
GENERALE-ROMANIA
BRD GROUP SOCIETE Investment credit 7.161.823 7.500.000
GENERALE-ROMANIA
ING BANK-SIBIU Credit line for production 3.274.558 2.339.742
ING BANK-SIBIU Investment credit 6.895.492 7.500.000
Total financial debts 19.804.683 19.085.733
LEI
Institutie de credit Tip imprumut 30.06.2021 01.01.2021
BRD GROUP SOCIETE Credit line for production 12.182.791 8.501.927
GENERALE-ROMANIA
BRD GROUP SOCIETE
GENERALE-ROMANIA Investment credit 35.284.152 36.520.500
ING BANK-SIBIU Credit line for production 16.132.767 11.393.139
ING BANK-SIBIU Investment credit 33.972.023 36.520.500
Total financial debts 97.571.731 92.936.066

The financial debts in foreign currency are valued in lei at the official exchange rate of the BNR from 30.06.2021.

13. COMMERCIAL AND OTHER DEBTS

Explanations 30.06.2021 01.01.2021
Suppliers 113.105.790 98.637.142
Advances received from customers 803.840 152.590
Debts from contracts with clients 8.855.569 3.408.686
Explanations 30.06.2021 01.01.2021
Debts related to staff 6.808.534 5.336.914
Debts to the general consolidated state budget and the local
budget
5.503.506 7.446.794
Current income tax liabilities 1.562.695 894.988
Dividends Payment 289.217 0
Various creditors 490.892 263.708
Advance income 1.128.514 2.043.773
Subsidies for investments from AMPOSDRU and AMPOSCEE
contracts
31.100.925 33.783.636
Inventory surpluses of the nature of fixed assets 32.832 41.473
Total trade and other payables 169.682.314 152.009.704

Debts in foreign currency are valued in lei at the official exchange rate of the NBR on 30.06.2021

14. PROVISIONS

In 2021, the company did not constitute an additional provision for guarantees granted to customers and for employee benefits, considering that there were no changes compared to the existing situation on 01.01.2021.

15. VENITURI SI SEGMENTE DE ACTIVITATE

Compa revenues structure is as follows:

Explanations 30.06.2021 30.06.2020
Total turnover, of which: 368.249.013 235.513.230
Revenues from sales of finished products 359.150.001 229.083.835
Revenues from services 1.314.937 1.255.521
Income from sale of goods 6.565.176 4.083.143
Income from other activities (rent, sales of materials, waste,
semi-finished products, packaging)
528.466 515.579
Revenues from subsidies related to turnover (projects and
partnership contracts for AMPOSDRU projects)
690.433 575.152
Other operating income 8.319.624 5.994.693
Total operating income 376.568.637 241.507.923

Other operating income consists of::

Explanations 30.06.2021 30.06.2020
Income from the production of fixed assets 4.607.184 3.457.139
Income from investment grants (projects and partnership
contracts for AMPOSDRU and AMPOSCEE projects)
2.655.102 2.339.249
Other operating revenues 1.057.338 198.305
Total - Other operating income 8.319.624 5.994.693

Segments of activity

The Compa's management regularly evaluates its activity in order to identify the activity segments for which information must be reported separately.

The group operates in Romania. The income of the Group presented above is entirely attributed to the country of residence.

Fixed assets, other than financial instruments, deferred tax receivables, post-employment benefits receivables and rights resulting from insurance contracts are located in Romania in their entirety. The Group does not have such fixed assets located in other countries.

16. EXPENDITURE ACCORDING TO DESTINATION

The operating expenses depending on their destination, made in the first 6 months of 2021 and 2020 are presented in the table below:

Explanations 30.06.2021 30.06.2020
Material expenses 227.081.659 131.633.888
Stock differences -797.122 6.035.742
Energy and water expenses 13.131.172 11.646.079
Expenses with employee benefits 72.396.736 52.462.489
Value adjustments on fixed assets 21.382.920 25.755.004
Value adjustments on current assets 2.077 -335.224
Expenses with services provided by third parties 17.148.440 12.219.745
Expenses with other taxes, fees and similar payments 2.218.108 2.019.834
Other operating expenses 2.309.560 2.073.740
Total operating expenses 354.873.550 243.511.297

17. EXPENSES WITH EMPLOYEE BENEFITS

Employee benefit expenses include salaries, allowances and social security contributions. Short-term benefits are recognized as an expense as the services are provided.

Explanations 30.06.2021 30.06.2020
Salaries and allowances 70.984.440 59.707.239
Government subsidies for employee spending 0 -8.397.372
Expenses with insurance and social protection 1.412.296 1.152.622
TOTAL 72.396.736 52.462.489

In the context of the COVID-19 pandemic, in H1 2020 Compa benefited from the subsidy granted by the government to cover the expenses with the technical unemployment indemnity paid to its employees. This subsidy was in the amount of 7,023,348 lei. In June 2020, for the employees whose contracts were reactivated, Compa fulfilled the conditions for requesting the subsidy representing 41.5% of the basic salaries corresponding to the hours provided for these employees. The value of the subsidy was 1,374,024 lei.

In 2021, the company no longer benefited from facilities to cover salary expenses.

18. PIERDERI (CASTIGURI) FINANCIARE

The structure of financial losses (gains) is presented below:

Explanations 30.06.2021 30.06.2020
Earnings from exchange rate differences related to monetary
items expressed in foreign currency
-1.439.384 -1.370.996
Interest losses -636.255 -537.262
Other financial gains 1.222.706 -128.931
Total losses / gains -852.933 -2.037.189

19. EARNINGS PER SHARE (EPS)

The calculation of earnings per share for H1 2021 and H1 2020 can be summarized as follows:

Explanations 30.06.2021 30.06.2020
Number of shares at the beginning of the year 218.821.038 218.821.038
Shares issued during the year 0 0
Number of shares at the end of the period 218.821.038 218.821.038
Net profit 17.422.664 -4.055.067
Earnings per share (RON per share) Basic / diluted: 0,0796 -0,0185

20. PARTI AFILIATE

The affiliated entities of COMPA SA are the following:

Affiliated parties % hold Holding
value
Object of activity
COMPA IT SRL 100,00 200,000 Custom software development activities
TRANS CAS SRL 99,00 742,500 Road transport of goods
RECASERV SRL 70,00 70,000 Event catering activities
ARINI HOSPITALITY SRL 100,00 19,703,000 Hotels and other similar accommodation facilities

The company ARINI HOSPITALITY SRL was founded in January 2021, which will carry out hotel activity, as a result of the development of the construction project of the Ibis-Mercure hotel complex.

The transactions carried out with the companies in which COMPA holds participations were the following (the amounts include VAT):

Explanations 30.06.2021 30.06.2020
Companies in which it holds
securities
Purchases of
goods and service
Sales of goods
and services
Purchases of
goods and service
Sales of goods
and services
TRANS C.A.S S.R.L. 8.707.707 245.724 5.503.767 254.886
COMPA IT S.R.L. 1.438.305 23.613 1.288.175 21.893
RECASERV S.R.L. 629.114 1.511 533.034 28.306
ARINI HOSPITALITY SRL 0 812.245 0 0

The mutual debts and receivables registered on 30.06.2021 and 30.06.2020 are the following:

Receivables receivable from COMPA SA from:

Explanations 30.06.2021 30.06.2020
TRANS C.A.S S.R.L. 851.280 157.742
COMPA IT S.R.L. 3.492 3.191
RECASERV S.R.L. 0 16.819

Debts to be paid by COMPA SA to:

Explanations 30.06.2021 30.06.2020
TRANS C.A.S S.R.L. 4.206.137 3.364.835
Company COMPA IT S.R.L. 926.538 806.028
RECASERV S.R.L. 344.547 397.650
ARINI HOSPITALITY SRL 0 0

Management List of company administrators

NAME FUNCTION
DEAC Ioan Chairman & CEO
MICLEA Ioan Vice president / CFO
MAXIM Mircea Florin Administrator
BALTEŞ Nicolae Chairman of the Audit Committee
NEACŞU Vlad- Nicolae Member of the Audit Committee

Lista membrilor conducerii executive a Societăţii şi directorii pe funcţiuni

NAME FUNCTION
DEAC Ioan Preşedintele CA / Director General
MICLEA Ioan Vice preşedintele CA / Director Economic
FIRIZA Ioan Director Management organizaţional şi RU
BĂIAŞU Dan-Nicolae Director Comercial
ACU Florin-Ştefan Director Tehnic
MUNTENAŞ Bogdan-Vasile Director Logistică
ŢUICU Liviu-Laurenţiu Director Calitate – Mediu
HERBAN Dorin - Adrian Director Sisteme de management şi îmbunătăţire
ŢUŢUREA Mihai Director Coordonator Producţie
FIRIZA Sorin Ioan Director Adj.Producţie
DRAGOMIR Marius C-tin Inginer Şef Mentenanţă

On behalf of the Board of Directors,

Chairman & CEO, Vice president / CFO.

Ioan DEAC Ioan MICLEA

C O N T E N T

1. INTRODUCTION

  • 1.1. LEGAL FRAMEWORK, PURPOSE AND NECESSITY OF PREPARATION OF FINANCIAL STATEMENT
  • 1.2. METHODS OF CONSOLIDATION APPLIED
  • 2. BRIEF HISTORY
  • 3. INFORMATION REGARDING THE ENTITIES WITHIN THE GROUP
  • 4. EVENTS IN THE GROUP'S ACTIVITY IN H1 2021
  • 5. INTRA - GROUP TRANSACTIONS
  • 6. FINANCIAL AND ACCOUNTING SITUATION OF THE GROUP
  • 7. CONSOLIDATED INTERIM FINANCIAL REPORT ON 30.06.2021
  • 7.1. STATEMENT OF CONFORMITY OF THE CONSOLIDATED INTERIM FINANCIAL STATEMENT
  • 7.2. CONSOLIDATED INTERIM FINANCIAL REPORT ON 30.06.2021

This is a free translation from Romanian, which is the official and binding version.

1. INTRODUCTION

1.1. LEGAL FRAMEWORK, PURPOSE AND NECESSITY OF PREPARATION OF FINANCIAL STATEMENT

COMPA S.A. Sibiu, whose SHARES are admitted to trading on the regulated market of the Bucharest Stock Exchange, applies the International Financial Reporting Standards (IFRS) starting with 2012.

In accordance with the accounting regulations in accordance with the 7th Directive of the European Economic Community, COMPA S.A. Sibiu (parent company) meets the conditions according to point 12. Based on point 3 of these regulations, the consolidated annual financial statements have been prepared.

The set of accounting registration rules of the economic-financial operations for the preparation, approval and statutory audit of the consolidated annual financial statements of the companies are provided in the "Accounting regulations compliant with IFRS" approved by OMFP 2844/2018.

All these normative acts constituted the necessary legal basis for the elaboration of the consolidated financial statements of the Group

The consolidated objective of the COMPA Group has as main objective the information of the investors and business partners of the parent company, as well as of the affiliated companies.

1.2. METHODS OF CONSOLIDATION APPLIED

According to the legal regulations, the preparation of the consolidated financial statements is carried out by the entity hereinafter referred to as the parent company, which holds participation titles in another entity, called the subsidiary or affiliated company.

In this context, the company COMPA S.A. Sibiu in its capacity as parent company has control, respectively the share of its participations in the share capital of the affiliated companies is higher than 50% in the following affiliated entities.:

COMPA I.T. S.R.L. 100,00 %
TRANS C.A.S. S.R.L. 99,00 %
RECASERV S.R.L. 70,00 %
ARINI HOSPITALITY SRL 100,00 %

COMPA S.A. Sibiu, the parent company, exercises an effective power, having a dominant influence, respectively it has control over the Group companies. Given the accounting regulations as well as the existing recommendations in this field, the consolidation method used with these companies is the "Global Integration Method".

2. BRIEF HISTORY

This chapter was presented in detail in the separate report for H1 2021, but we consider it necessary and appropriate that certain episodes in the history of the parent company be highlighted in the consolidated H1 2021 Report.

1886 - The Jozsef Datky blacksmith's workshop is officially certified, where lamellar springs were produced for the carriages of the time but also for some parts and tools obtained by forging.

The workshop was developed so that the products made in this family business were found at international exhibitions in the Austro-Hungarian Empire (Vienna and Budapest).

1948 - It is the year in which private companies, such as the predecessor Uzina Elastic, profiled at that time in the manufacture of sheet springs, helical springs wrapped hot or cold, were nationalized as a result of the installation in Romania of the communist regime..

1969 - The Automobile Parts Enterprise (IPAS) is established, by merging two large companies, which operated in Sibiu that year, respectively:

  • Sibiu Automecanica Plant, which in turn had an impressive history, from an arsenal of Artillery, which ensures the repair and manufacture of weapons necessary for the defense of the Sibiu Fortress, to the construction of car equipment with advanced technology at the time of merger;

  • Elastic Sibiu Plant, with a craft tradition since the founding of the Datky Workshop, which it has permanently developed, making at the time of merging a varied and diversified range of lamellar springs for the manufacture of vehicles made in Romania and a wide range of springs helical, hot and cold wrapped, intended for the entire rolling stock industry (locomotives, wagons), of the machine building industry from all over Romania.

1991 - The Automobile Parts Enterprise (IPAS) is transformed into S.C.COMPA S.A.Sibiu, as a result of the political and economic framework created by the transition of Romania from a communist totalitarian state to a state with a market economy.

1999 - It is the year of the privatization of the parent company, S.C.COMPA S.A. by purchasing the majority stake of the State Property Fund (FPS). This historical stage ensures the premises for the development in conditions of competitiveness and profitability of the company, for the development of business partnerships with representative companies from the world industry, on the principles of equality and competence, of fair competition.

2000 - The foundations are laid for the establishment of the COMPA Group by transforming the IT Service, which operated within the parent company with the activity of software design and internal network administration, into a separate company, S.C.Compa IT S.R.L., with full capital COMPA. As a result of the establishment of this company in an economic unit with predominant activity in information technology (IT), the premises for the development of this sector of activity were created both for the realization of an integrated IT system of COMPA but also for software for other companies in outside the Compa Group.

2001 - The second affiliated company S.C.TRANS C.A.S. S.R.L. Sibiu, a limited liability company, with a predominant COMPA contribution, resulted from the transformation of the existing Transport Base within the parent company, into a separate company specialized in domestic and international road transport. By setting up this company specialized strictly in the transport activity, the conditions for its development were created, which provide transport services, not only for the parent company, but also for other companies in Romania and in Europe.

The company has developed a lot since its establishment, investing in the acquisition of mainly heavy trucks (TIR) used for transporting raw materials and materials from suppliers and transporting finished products, both for COMPA and for various companies in Romania but more resembles companies in Europe.

2004 - The third affiliated company is established, respectively RECASERV S.R.L., by transforming the activity of the COMPA canteen into a separate company in which the COMPA company holds the control position, being the majority associate.

2021 - The fourth affiliated company is established, respectively ARINI HOSPITALITY S.R.L., which will carry out hotel activity, by building the Ibis-Mercure hotel complex..

3. INFORMATION REGARDING THE ENTITIES WITHIN THE GROUP

3.1. COMPA S.A. parent - Company

Social headquarters No.8, Henri Coandă Street, Sibiu
Registration no. in theTrade
Register J32/129/1991,
Fiscal Code (VAT Code) RO 788767
The main activity 2932 - Manufacture of other parts and accessories for motor vehicles
Share capital (RON) 21.882.103,8
Deac Ioan
- Chairman & CEO
Miclea Ioan -
- Vice president & CFO
Board of Directors Maxim Mircea Florin - Administrator
Balteş Nicolae
- Audit committee President/ administrator
Neacşu Vlad Nicolae - Audit committee member/ administrator

Form of ownership: COMPA S.A. is a company with 100% private capital. It was privatized in September 1999, by buying the majority stake in the Compa Sibiu Employees Association (PAS), which became the company's main shareholder.

In 2018, the Compa Sibiu Employees Association (PAS) was dissolved, the shares being transferred to the members of the association, depending on the number of shares held and purchased by each.

As presented in detail in the Individual Annual Report 2020, the parent company is organized on Profit Centers, integrated units without legal personality with a decentralized activity, structured to make products for a single customer or to make similar products for several customers, such as: Forging, Heat treatment, Galvanization, Pressed - stamped parts, mechanical - welded subassemblies.

The financial investments of the parent company COMPA, which consist of participation titles and shares, in the other 3 affiliated companies, as follows:

COMPA holds titles /
equity shares :
Social headquarters The value of
titles held by
COMPA
%
ownership
COMPA I.T. S.R.L. Sibiu, 8 Henri Coandă, Sibiu county 200,000 100.00
TRANS .C.A.S. S.R.L. Sibiu, 12 Henri CoandăSibiu county 1,498,450 99.00
RECASERV S.R.L. Sibiu, 51 Henri CoandăSibiu county 70,000 70.00
ARINI HOSPITALITY S.R.L. Sibiu, 8 Henri Coandă, Sibiu county 19.703.000 100.00
TOTAL 20,715,500

The management of the parent company COMPA, as well as of the entire Compa Group is ensured by the Board of Directors elected by the Ordinary General Meeting of Shareholders, for a period of 4 years.

3.2. COMPA I.T. S.R.L Company

The purpose of the establishment was to design and implement an integrated IT system for the parent company, to the existing international standards and to ensure the requirements imposed by the organization of profit centers of the company COMPA, as well as to ensure a computer network of computers extended throughout the company COMPA.

By implementing the integrated system in the parent company, COMPA-IT ensures the operation of this system at higher parameters, prepares reports and presents the new facilities of the system in order to capitalize at the highest possible level of opportunities that this very complex system can offer. competitive.

Social headquarters Sibiu, No.8, Henri Coandă Streed, Sibiu County
Recording no. in the Trade Register J32/17/2001,
Fiscal Code (VAT) CUI 13656016
The main activity 6201 - Computer programming activities
Share capital (RON) 200,000
Sole shareholder COMPA S.A
Administrator Acu Florin-Ştefan

3.3. TRANS CAS S.R.L. . Company

The reason for setting up the company was to outsource the car transport activity initially existing within the COMPA company, in order to expand and develop this activity different from the activity profile of the COMPA company.

TRANS C.A.S. S.R.L. currently owns a number of over 60 vehicles, of which a significant share is held by Mercedes-type trailer trucks, with a capacity of over 20 tons payload, intended for the transport of materials and finished products for both COMPA and other customers.

The overwhelming share of TRANS C.A.S. it is owned by international freight transport in almost all of Europe.

Sediul social Sibiu, Str.Henri Coandă Nr.12
Nr.înregistrare în Registrul Comerţului J32/633/2002
Cod Unic de înregistrare CUI 14836511
Obiectul principal de activitate 4941 "Transporturi rutiere de mărfuri"
Capital social, din care: 1.500.000 lei
Acţionari: COMPA S.A.Sibiu 1.498.450 lei
Maxim Mircea Florin şi Mihăilă Daniela 1.550 lei
Administrator Maxim Mircea Florin

In June 2021, according to the Decision of the Extraordinary General Meeting of Shareholders of Compa SA from 12.11.2020, as well as the Decision of the Extraordinary General Meeting of Trans-Cas SRL Associates of 12.01.2021, the share capital of Trans-CAS SRL was decreased from 1,500,000 lei , at 750,000 lei.

The holding of Compa SA in the share capital of this affiliated company decreased from 1,498,450 to 742,500 lei.

The value of 755,950 lei, representing the share held by Compa from the decrease of the share capital will be returned to Compa by Trans-CAS in the next period.

3.4. RECASERV S.R.L.Company

The purpose of setting up the company was to outsource from the parent company COMPA S.A. of some activities different from its main activity profile, activities such as: public catering made through the canteen and the micro-canteens that operate inside the COMPA company.

By establishing RECASERV S.R.L. the conditions for the development of this activity were ensured by supplementing with secondary services: catering and cleaning services.

Social headquarters Sibiu, 51 Henri Coandă StreetSibiu County
Recording no. in the Trade Register J32/704/2004
Fiscal Code (VAT Code) CUI 164408228
The main activity 5629 Other food service activities
Share capital, of which: 100.000 RON
Shareholders: COMPA S.A.Sibiu 70%
Boroş Daniela (individual person) 30%
Administrator BOROŞ Daniela

3.5. ARINI HOSPITALITY S.R.L. Cinoany

The purpose of setting up the company was to outsource from the parent company COMPA S.A. of activities different from its main activity profile, activities such as: Hotels and other similar accommodation facilities.

Social headquarters Sibiu. Str.Henri Coandă Nr.8
Recording no. in the Trade Register J32/77/2021
Fiscal Code (VAT Code) CUI 43581594
The main activity 5510 Hoteluri şi alte facilităţi de cazare similare
Share capital (RON) 19.703.000 lei
Sole shareholder 100%
Administrator Băiaşu Dan-Nicolae

4. EVENTS IN THE GROUP'S ACTIVITY IN SEM.1 202

19.01.2021 – is registered at the Trade Register the company ARINI HOSPITALITY SRL, in which the company COMPA SA is the sole partner.

11.06.2021 – is registered at the Trade Register The constitutive act updated at the affiliated company TRAN-CAS SRL, registering the decrease of its share capital from 1,500,000 lei to 750,000 in accordance with the decision of the Extraordinary General Meeting of Shareholders of Compa SA from 12.11.2020 and the decision. Extraordinary Meeting of Trans-CAS SRL Associates from 12.01.2021

5. INTRA - GROUP TRANSACTIONS

30.06.2021 30.06.2020
Companies in which it
holds securities
Purchases of
goods and service
Sales of goods
and services
Purchases of
goods and service
Sales of goods
and services
TRANSCAS S.R.L. 8,707,707 245,724 5,503,767 254,886
COMPA IT S.R.L. 1,438,305 23,613 1,288,175 21,893
RECASERV S.R.L. 629,114 1,511 533,034 28,306
ARINI HOSPITALITY R.R.L. 0 812,245 0 0

The relations took place in commercial terms of the free market, their price being agreed by negotiation, within the levels practiced on the market..

6. FINANCIAL AND ACCOUNTING SITUATION OF THE GROUP

6.1.. The main balance sheet items

The main balance sheet elements and their evolution in the first half of 2021, compared to 31.12.2020, are presented below:

Indicator 31.12.2020 30.06.2021
FIXED ASSETS 498,646,738 493,205,048
CURRENT ASSETS 235,719,119 291,769,395
DEBTS LESS THAN ONE YEAR 131,068,513 153,381,572
DEBTS OVER A YEAR 110,328,247 126,555,839
CAPITAL AND RESERVES 492,969,097 505,037,032

6.2. Statement of income and expenditure

The situation of income and expenses on 30.06.2021 compared to the same period last year is as follows:

Indicator 30.06.2020 30.06.2021
Operating result -2,370,273 21,805,361
Financial result -2,042,663 -846,867
Gross result -4,412,936 20,958,494
Tax 32,091 3,467,250
Net result -4,445,027 17,491,244

6.3. Cash flow statement

The statement of cash flows is summarized below

Indicator 30.06.2020 30.06.2021
Net cash generated from operations 52,672,438 14,253,825
Net cash generated from investment activities -55,852,480 -15,162,813
Net cash generated from financial activity -2,868,734 3,656,387
Net cash flow -6,048,776 2,747,399
Cash at the beginning of the period 8,961,682 2,250,970
Cash at the end of the period 2,912,906 4,998,369

6.4. The main economic-financial indicators of the Compa Group

Indicator 30.06.2020 30.06.2021
Turnover 236,968,445 369,996,664
Net profit -4,445,027 17,491,244
Investment volume 55,852,480 15,162,813
Current liquidity 2.66 1.90
Degree of indebtedness 0.21 0.20

6.5. Comparison of the main group indicators - parent company

INDICATORS COMPA-06.2020 Grup-06.2020 COMPA-06.2021 Grup-06.2021
Fixed assets 489,526,763 489,498,855 493,639,346 493,205,048
Current assets 175,643,343 178,267,358 273,381,882 291,769,395
Equity 470,579,185 475,414,461 499,631,538 505,037,032
Long-term debt 125,104,313 125,325,748 111,530,949 126,555,839
Current debts 69,486,608 67,026,004 155,858,741 153,381,572
Operating result -2,003,374 -2,370,273 21,695,086 21,805,361
The financial result -2,037,189 -2,042,663 -852,933 -846,867
Gross profit -4,040,563 -4,412,936 20,842,153 20,958,494
Income tax expense 14,504 32,091 3,419,489 3,467,250
Net profit for the period -4,055,067 -4,445,027 17,422,664 17,491,244

7. CONSOLIDATED INTERIM FINANCIAL REPORT ON 30.06.2021

7.1. STATEMENT OF CONFORMITY OF THE CONSOLIDATED INTERIM FINANCIAL STATEMENT

STATEMENT

in accordance with the provisions of art. 30 of the Accounting Law no. 82/1991

__________________________________________________________________________________________

The consolidated half-yearly financial reports were prepared on 30.06.2021 for::

Entity: COMPA S.A.

County: 32 Sibiu

Address: Sibiu locality, Henri Coandă street, no. 8, CP 550234

Trade register number: J 32/129/1991

Form of ownership: 34 Joint stock companies

Predominant activity

(code and name CAEN class): 2932 - Manufacture of other parts and accessories for motor vehicles and their engines

__________________________________________________________________________________________

Registration Number: RO788767

The undersigned Ioan MICLEA,

Having the quality of Economic Director, according to art.10 paragraph (1) of the Accounting Law no.82 / 1991, I assume the responsibility for the preparation of the consolidated half-yearly financial reports on 30.06.2021 and I confirm the following:

a) The accounting policies used in preparing the half-yearly financial reports are in accordance with the applicable accounting regulations.

b) The half-yearly financial reports provide a true and fair view of the financial position, financial performance and other information relating to the activity carried out.

c) The legal person carries out its activity in conditions of continuity.

Vice-Chairman / CFO,

Ioan MICLEA

7.2. RAPORT FINANCIAR INTERIMAR CONSOLIDAT LA 30.06.2021

Consolidated statement of financial position for - 30.06.2021 (all amounts are expressed in RON, unless otherwise specified

Nota 30.06.2021 31.12.2020
Fixed assets
Tangible fixed assets 4.1. 430.901.140 420.652.107
Intangible assets 4.2. 9.075.092 8.672.020
Real estate investments 5 51.235.588 66.242.388
Other receivables (Subsidies and settlements from joint
operations) 6 730.215 1.224.822
Other fixed assets 7 123.112 121.233
Deferred tax receivables 11 1.139.901 1.734.168
Fixed assets- total 493.205.048 498.646.738
Current assets:
Stocks 8 110.752.494 91.644.187
Trade and other receivables 6 159.434.656 139.630.810
Other receivables (Subsidies and settlements from joint 6
operations) 16.583.876 2.193.152
Cash and cash equivalents 9 4.998.369 2.250.970
Current assets - total 291.769.395 235.719.119
Total assets 784.974.443 734.365.856
Equity:
Capital issued 11 21.882.104 21.882.104
Share capital adjustments 11 -705.680 -250.338
reserves 11 375.954.921 367.435.461
Reserve adjustment 11 23.150.986 23.151.094
Reported result 11 67.058.409 66.530.853
Current result 11 17.490.675 14.060.074
Minority interests 11 205.617 159.849
Equity - total 505.037.032 492.969.097
Long-term debts:
Datorii financiare 12 83.478.706 80.989.753
Venituri in avans ( venituri in avans, subventii ) 13 42.941.488 29.202.849
Provizioane 14 135.645 135.645
Long-term debts - total 126.555.839 110.328.247
Current debts:
Financial debts
12 14.318.319 12.506.659
Trade and similar debts; 13 109.992.303 93.954.615
Other debts 13 14.414.667 13.610.672
Debts from contracts with clients 13 8.855.569 3.408.686
Current tax liabilities 10 1.584.663 921.847
Advance income (advance income, subsidies) 13 4.216.051 6.666.033
Current debts - total 153.381.572 131.068.513
Totaldebts 279.937.411 241.396.759
Total capitaluri proprii si datorii 784.974.443 734.365.856

Consolidated statement of profit or loss and other comprehensive income - 30.06.2021

(all amounts are expressed in RON, unless otherwise specified)

Nota 30.06.2021 30.06.2020
Income 15 369.996.664 236.968.445
Other incomes 15 7.693.798 6.044.096
Total income 377.690.462 243.012.541
Variation of stocks of finished products and production in
progress 16 797.720 -6.008.006
Raw materials and consumables used 16 -242.337.810 -144.884.786
Expenses with employee benefits 17 -75.156.423 -54.910.296
Depreciation and amortization expenses 4.1;4.2;5,16 -21.662.249 -25.854.668
Services provided by third parties 16 -13.538.623 -9.532.288
Other expenses 16 -3.987.716 -4.192.771
Total expenses -355.885.100 -245.382.814
Operating result 21.805.361 -2.370.273
Financial income 18 1.318 7.097
Financial expenses 18 -644.226 -559.157
Other financial gains / losses 18 -203.958 -1.490.602
Net financing costs -846.867 -2.042.663
Profit before tax 20.958.494 -4.412.936
(Expenses) / Deferred income tax income 10 -734.844 -14.504
Current income tax expense 10 -2.732.406 -17.587
Net profit for the period, of which: 17.491.244 -4.445.027
Attributable to non-controlling interests -1.119 -13.706
Attributable to the mother society 17.492.363 -4.431.321
Other elements of the overall result:
of which, other items of comprehensive income that will 140.577 143.482
not be subsequently reclassified to profit or loss: 10
Other income from comprehensive income, net of tax 140.577 143.482
Total overall result for the year, of which: 17.631.821 -4.301.545
Attributable to non-controlling interests 20 -1.120 -13.709
Attributable to the mother society 20 17.632.941 -4.287.836
Consolidated result per basic / diluted share 0,08 -0,02

RAPORT CONSOLIDAT S1 – 2021

Consolidated statement of changes in share capital for the year ended at 30.06.2021

(all amounts are expressed in RON, unless otherwise specified)

Equity element Share
capital
Adjustments
of share
capital
Losses
related
to
treasury
shares
Legal
reserves
Adjustments
to legal
reserves
Revaluation
reserves
Other
reserves
Adjustments
to other
reserves
Retained
earnings
Totally
attributable
to the
company's
shareholders
llThings
that do not
control
Total
Balance at 01.01.2020 21.882.104 -64.910 -45.961 4.949.124 22.679.066 83.891.130 275.313.947 472.028 70.443.869 479.520.397 192.048 479.712.445
Profit of the year 14.060.074 14.060.074 -32.197 14.027.877
Other elements of the
overall result, of
which:
0 0 0 0 0 0 288.506 0 0 288.506 288.506
Transactions with
shareholders,
registered directly in
equity, of which:
0 -185.428 -874.303 11.005 0 0 3.902.013 0 -3.913.016 -1.059.729 -2 -1.059.731
Repurchase of own
shares
-185.428 0 -185.428 -185.428
Losses related to own
shares
-874.303 -874.303 -874.303
Profit distribution 11.005 3.902.013 -3.913.016 2 -2 0
Balance at 31.12.2020 21.882.104 -250.338 -920.264 4.960.129 22.679.066 83.891.130 279.504.466 472.028 80.590.927 492.809.248 159.849 492.969.097
Equity element Share
capital
Adjustments
of share
capital
Losses
related to
treasury
shares
Legal
reserves
Adjustments
to legal
reserves
Revaluation
reserves
Other
reserves
Adjustments
to other
reserves
Retained
earnings
Totally
attributable
to the
company's
shareholders
llThings
that do not
control
Total
Balance at
01.01.2021
21.882.104 -250.338 -920.264 4.960.129 22.679.066 83.891.130 279.504.466 472.028 80.590.927 492.809.248 159.849 492.969.097
Profit of the year 17.490.675 17.490.675 -1.119 17.489.556
Other elements of
the overall result, of
0 0 -
2.310.636
0 0 0 0 0 0 -2.310.636 -2.310.636
Equity element Share
capital
Adjustments
of share
capital
Losses
related to
treasury
shares
Legal
reserves
Adjustments
to legal
reserves
Revaluation
reserves
Other
reserves
Adjustments
to other
reserves
Retained
earnings
Totally
attributable
to the
company's
shareholders
llThings
that do not
control
Total
which:
Losses related to the
redemption of own
shares
-
2.310.636
0 0 0
Transactions with
shareholders,
registered
directly in
equity, of which:
0 -455.342 0 1.224 0 0 10.828.872 -108 -13.532.518 -3.157.872 45.768 -3.112.104
Repurchase of own
shares
-455.342 0 -455.342 -455.342
Transfer reserves to
the result
-108 -108 -108
Profit distribution 1.224 10.828.872 -13.532.518 -2.702.422 45.768 -2.656.654
Balance at
30.06.2021
21.882.104 -705.680 -
3.230.900
4.961.353 22.679.066 83.891.130 290.333.338 471.920 84.549.084 504.831.415 205.617 505.037.032

Consolidated statement of cash flows at 30.06.2021

(all amounts are expressed in RON, unless otherwise specified)

Explanations 30.06.2021 30.06.2020
Profit before tax 20.958.494 -4.412.936
Adjustments for non-monetary items:
Depreciation and amortization expenses 21.662.249 25.854.668
Adjust other non-monetary items 1.480.970 -20.186.189
Operating profit before other changes in working capital 44.101.714 1.255.543
(Increases) / Decreases in stocks -19.108.307 17.950.543
(Increases) / Debt decreases -33.690.963 83.604.629
Increases / (Debt decreases) 22.951.381 -50.138.277
Net cash generated from operations 14.253.825 52.672.438
Cash flows from investment activity
Acquisitions of tangible assets -14.439.560 -54.533.505
Acquisitions of intangible assets -723.253 -1.318.975
Net cash generated from investment activities -15.162.813 -55.852.480
Cash flows from financial activity
(Increases) / Decreases in financial debts 4.300.613 -2.309.577
Interest rates -644.226 -559.157
Net cash generated from financial activity 3.656.387 -2.868.734
Net cash generated from total activity 2.747.399 -6.048.776
Cash and cash equivalents at the beginning of the period 2.250.970 8.961.682
Cash and cash equivalents at the end of the period 4.998.369 2.912.906

EXPLANATORY NOTES TO THE CONSOLIDATED INTERIM FINANCIAL REPORT AT 30.06.2021

((all amounts are expressed in RON, unless otherwise specified)

1. GENERAL INFORMATION

COMPA is a joint stock company, based in Sibiu, str. Henri Coandă no.8, CP 550234

Field of activity of the company: design, production and marketing of components for the manufacture of cars, transport vehicles, buses, trailers, tractors, wagons, locomotives and various industrial equipment, services and technical assistance.

The main object of activity, according to the CAEN code is 2932 "Manufacture of other parts and accessories for motor vehicles and motor vehicles"

The form of ownership of the company

COMPA S.A. is 100% privatized since September 1999. The company is listed, the shares are traded on the Bucharest Stock Exchange in the Standard category, CMP symbol.

The evolution of the company

By Government Decision no. 1296 / 13.12.1990, the company became S.C.COMPA S.A., coming from the Sibiu Auto Parts Company (I.P.A.Sibiu). I.P.A. Sibiu was founded in 1969 by unifying two units: Uzina Elastic and Uzina Automecanica Sibiu.

Since 1991, COMPA has been organized in factories / workshops, set up by product families as cost centers, which over time have become profit centers, in order to decentralize and facilitate the establishment of joint ventures.

Financial investments COMPA S.A. as a parent company, representing participation titles held in shares or shares in commercial entities are presented in the table below:

The company in which
COMPA holds the
securities
Social headquarters The value of
securities held
by COMPA
% in share
capital
COMPA I.T. S.R.L. No.8, Henri Coandă, Sibiu 200,000 100.00
TRANS .C.A.S. S.R.L. No.12, Henri Coandă, Sibiu 742,500 99.00
RECASERV S.R.L. No 51,.Henri Coandă Sibiu 70,000 70.00
ARINI HOSPITALITY SRL No.8, Henri Coandă, Sibiu 19,703,000 100,00%
TOTAL 20,715,500

Conducerea societăţii COMPA a fost asigurată de un Consiliu de Administraţie format din:

  • Deac Ioan Chairman & CEO,
  • Miclea Ioan Vice-President & CFO
  • Maxim Mircea-Florin member of the Board
  • Balteş Nicolae member of the Board
  • Neacşu Vlad Nicolae member of the Board

2. BASICS OF PREPARATION

Declaration of conformity

The consolidated interim financial report has been prepared in accordance with the International Financial Reporting Standards adopted by the European Union ("EU") and with the Order of the Minister of Public Finance no. 2844/2016.

The Group has adopted IFRS reporting since the 2012 financial statements.

3. SIGNIFICANT ACCOUNTING POLICIES

The significant accounting policies applied by the Group are those presented in the Financial Statements concluded on 31.12.2020 and have not changed during the interim report.

4.1. TANGIBLE ASSETS

The evolution of tangible assets from January 1, 2021 to June 30, 2021 is as follows:

Explanations Book value at 30.06.2021 Book value at 01.01.2021
Lands 52.983.700 43.848.700
Constructions 93.816.460 88.169.934
Equipment and vehicles 238.577.429 210.075.798
Explanations Book value at 30.06.2021 Book value at 01.01.2021
Other tangible assets 488.487 519.619
Corporal immobilizations taking course 45.035.064 78.038.056
Total 430.901.140 420.652.107

Tangible assets representing "Tangible fixed assets in progress" are measured at historical cost. The group chose for the valuation of tangible assets of the nature of lands and constructions the model of revaluation at fair value.

In the fair value hierarchy, the revaluation of buildings and land of the group at fair value is classified as level 2 data. The valuation technique used in the fair value valuation of level 2 is the method of comparing prices. Prices comparable to nearby buildings and constructions are adjusted according to specific characteristics, such as the size of the property, etc. The most important entry date for this valuation method is the price per square meter.

There were no transfers between the level at which the fair value measurements are classified during 2021. Depreciation of all tangible fixed assets is determined by the straight-line method.

Fixed assets decreased in 2021 through depreciation and scrapping. The scrapped fixed assets were fully depreciated and had an inventory value of 1,784,142 lei.

4.2. REAL ESTATE INVESTMENTS

Evolutia investitiilor imobiliare de la 1 ianuarie 2021 Ia 30 iunie 2021 este urmatoarea:

Explanations Book value at 30.06.2021 Book value at 01.01.2021
Real estate investments 48.053.184 56.352.095
Real estate investments under construction 3.182.404 9.890.293
Total 51.235.588 66.242.388

Real estate investments are valued at fair value. A gain or loss generated by a change in the fair value of the investment property is recognized in profit or loss for the period in which it occurs. Fixed assets "Real estate investments in progress" are valued at historical cost.

In 2021, the company ARINI HOSPITALITY SRL was established, with a 100% Compa ownership. Real estate investments in book value of 8,298,912 lei, as well as real estate investments in execution in book value of 8,052,078 lei constituted a contribution in kind to the share capital of the newly established company. The real estate investments in progress were also diminished by sale to the newly established company. The book value of the sold real estate investments was 507,512 lei.

5. INTANGIBLE FIXED ASSETS

Imobilizarile necorporale detinute de Grup reprezinta programe informatice si licente soft. Evolutia acestora a fost urmatoarea:

Explanations Book value at 30.06.2021 Book value at 01.01.2021
Establishment expenses 169.296
Research and development expenses 4.573.153 4.714.181
Computer programs and software licenses 4.332.643 3.957.839
Total 9.075.092 8.672.020

6. TRADE RECEIVABLES AND OTHER RECEIVABLES

The situation of other receivables held by the Group is as follows:

Explanations Book value at 30.06.2021 Book value at 01.01.2021
Trade receivables 143.271.964 129.625.642
Advances paid to suppliers 10.960.421 6.416.065
Receivables related to staff 30.199 52.766
Receivables in connection with the
consolidated state budget and the local
budget
2.715.021 2.028.242
Different debitors 392.010 736.562
Prepayments 2.065.041 771.533
Subsidies receivable (European funds
projects, subsidies for staff costs)
17.314.091 3.417.974
Total 176.748.747 143.048.784

The situation of the adjustments for the depreciation of customer receivables is presented as follows:

Sold on 01.01.2021 138.064
Adjustments made in H1 2021 1.486
Reverse adjustments in H1 2022 -87.428
Sold on 30.06.2021 52.122

Situatia ajustarilor pentru deprecierea debitorilor neincasati se prezinta astfel:

Sold on 01.01.2021 647.331
Adjustments made in H1 2021 88.482
Reverse adjustments in H1 2022 0
Sold on 30.06.2021 735.813

The Group's commercial policy requires the recording of impairment adjustments for receivables exceeding 365 days, except for those receivables registered with partners to which the Company is also indebted, the debts registering approximately the same seniority as uncollected receivables.

Receivables in foreign currency are valued in lei at the official exchange rate of the BNR on 30.06.2021

7. OTHER FIXED ASSETS

The fixed assets held by the Group are as follows:

Explanations 30.06.2021 01.01.2021
Customs guarantee for customs clearance at
headquarters
103.000 103.000
Other guarantees 18.698 18.233
Total other assets 20.112 121.233

8. STOCKS

The structure of the stocks held by the Group is presented in the table below:

Explanations 30.06.2021 01.01.2021
Raw materials 48.348.955 33.052.002
Materials and packaging 28.380.215 25.297.807
Semi-finished products and production in 24.014.110 23.703.476
progress
Finished products and goods 10.009.214 9.590.902
Total stocks 110.752.494 91.644.187

9. CASH AND CASH EQUIVALENTS

Explanations 30.06.2021 01.01.2021
Bank accounts in RON 3.762.028 973.609
Currency bank accounts 1.187.184 1.216.097
Cash equivalents 915 590
Petty cash 22.555 60.674
Currency 25.687
Total cash and cash equivalents 4.998.369 2.250.970

The group holds accounts in lei and foreign currency at the following banking institutions: BRD GROUP SOCIETE GENERALE, ING BANK, TREZORERIE

10. PROFIT TAX

The Group's profit / current income tax is determined on the basis of the statutory profit, adjusted with nondeductible expenses and non-taxable income, at a rate of 16% for 6 months 2021 and 6 months 2020

Explanations 30.06.2021 30.06.2020
Current income tax expense -2.728.500 -11.642
Expenditure on micro-enterprise income tax -3.906 -5.945
Expenditure / Deferred income tax -734.844 -14.504
Total specific profit / income tax -3.467.250 -32.091

11. EQUITY

The shareholding structure on 30.06.2021 is as follows:

Explanations Number of Shares % of total share capital
Deac Ioan 41.585.887 19,0045
Miclea Ioan 41.042.480 18,7562
Explanations Number of Shares % of total share capital
Romanian and foreign shareholders (individuals / legal) 136.192.671 62,2393
Total number of shares 218.821.038 100,0000

The Company's shares have a nominal value of 0.1 RON / share. Since June 1997, the Company's shares are traded on the Bucharest Stock Exchange, and since July 2001 it is listed on the standard category.

The Group's equity includes the following:

Explanations 30.06.2021 01.01.2021
Subscribed and paid-in capital 21.882.104 21.882.104
Own actions -705.680 -250.338
Losses related to the redemption of own
shares
-3.230.901 -920.264
Revaluation reserves 83.891.130 83.891.130
Legal reserves 4.961.353 4.960.129
Adjustment of legal reserves 22.679.066 22.679.066
Other non-distributable reserves -
redemption of own shares
3.890.000 3.890.000
Other reservations 286.443.339 275.614.466
Adjust other reserves 471.920 472.028
Profit this year 17.490.675 14.060.074
Reported result 67.058.409 66.530.853
Minority interests 205.617 159.849
Total equity 505.037.032 492.969.097

On 27.04.2020, the GMS approved a plan for the redemption of its own shares in the amount of 3,890,000 lei. The maximum pecuniary value allocated to the program: 3,890,000 lei, excluding brokerage commissions and other acquisition costs.

The payment of the repurchased shares will be made, according to the provisions of art.1031 of law 31/1990, from the distributable profit of the Group, entered in the financial statement for 2019. Duration of the program: 18 months from the date of publication of the decision in the Official Gazette of Romania part IV.

Purpose: The shares will be redeemed for free distribution to the members of the Group's management. Until 30.06.2021, 6,407,697 shares were redeemed, as follows::

  • -nominal value of redeemed shares: 640,769.70 lei
  • -total redemption value of shares: 3,825,709.95 lei, resulting:
  • -loss related to the redemption of own shares in the amount of 3,184,940.25 lei

12. FINANCIAL DEBTS

Long-term and short-term financial debts are as follows: EUR

Credit institution Loan type 30.06.2021 01.01.2021
BRD GROUP SOCIETE
GENERALE-ROMANIA
Credit line for
production
2.472.809 1.745.991
BRD GROUP SOCIETE Investment credit 7.161.823 7.500.000
Credit institution Loan type 30.06.2021 01.01.2021
GENERALE-ROMANIA
ING BANK-SIBIU Credit line for
production
3.274.558 2.339.742
ING BANK-SIBIU Investment credit 6.895.492 7.500.000
IMPULS-Leasing Romania
I.F.N. SA
Financial leasing
contracts
45.729 115.545
Total financial debts 19.850.412 19.201.277
Lei
Credit institution Loan type 30.06.2021 01.01.2021
BRD GROUP SOCIETE
GENERALE-ROMANIA
Credit line for
production
12.182.791 8.501.927
BRD GROUP SOCIETE
GENERALE-ROMANIA
Investment credit 35.284.152 36.520.500
ING BANK-SIBIU Credit line for
production
16.132.767 11.393.139
ING BANK-SIBIU Investment credit 33.972.023 36.520.500
IMPULS-Leasing Romania
I.F.N. SA
Financial leasing
contracts
225.294 560.346
Total financial debts 97.797.025 93.496.412

The financial debts in foreign currency are valued in lei at the official exchange rate of the BNR from 30.06.2021.

13. COMMERCIAL AND OTHER DEBTS

The statement of trade payables and other payables is as follows:

Explanations 30.06.2021 01.01.2021
Suppliers 109.943.316 93.800.637
Advances received from customers 804.937 153.979
Debts from contracts with clients 8.855.569 3.408.686
Debts related to staff 7.068.490 5.534.208
Debts to the general consolidated state budget and the local
budget
5.816.038 7.812.755
Current income tax liabilities 1.584.663 921.847
Dividends Payment 289.217 0
Various creditors 484.971 263.708
Advance income 1.128.514 2.043.773
Subsidies for investments from AMPOSDRU and AMPOSCEE
contracts
45.996.194 33.783.636
Inventory surpluses of the nature of fixed assets 32.832 41.473
Total trade and other payables 182.004.741 147.764.702

Debts in foreign currency are valued in lei at the official exchange rate of the NBR on 30.06.2021.

14. PROVISIONS

In 2021, the Group did not constitute an additional provision for guarantees granted to customers and for employee benefits, considering that there were no changes compared to the existing situation on 01.01.2021.

15. INCOME AND ACTIVITY SEGMENTS

Group revenues structure is as follows:

Explanations 30.06.2021 30.06.2020
Total turnover, of which: 369.996.664 236.968.445
Revenues from sales of finished products 359.115.560 229.034.877
Revenues from services 3.266.686 2.792.074
Income from sale of goods 6.551.318 4.227.044
Income from other activities (rent, sales of
materials, waste, semi-finished products, 372.667 339.298
packaging)
Revenues from subsidies related to turnover
(projects and partnership contracts for 690.433 575.152
AMPOSDRU projects)
Other operating income 7.693.798 6.044.096
Total operating income 377.690.462 243.012.541

Other operating income consists of:

Explanations 30.06.2021 30.06.2020
Income from the production of fixed assets 4.607.184 3.457.139
Income from investment grants (projects and
partnership contracts for AMPOSDRU and
AMPOSCEE projects)
2.655.102 2.339.249
Other operating revenues 431.512 247.708
Total - Other operating income 7.693.798 6.044.096

Segments of activity

The Group's management regularly evaluates its activity in order to identify the activity segments for which information must be reported separately.

The group operates in Romania. The income of the Group presented above is entirely attributed to the country of residence.

Fixed assets, other than financial instruments, deferred tax receivables, post-employment benefits receivables and rights resulting from insurance contracts are located in Romania in their entirety. The Group does not have such fixed assets located in other countries.

16. EXPENDITURE ACCORDING TO DESTINATION

The operating expenses depending on their destination, made in the first 6 months of 2021 and 2020 are presented in the table below:

Explanations 30.06.2021 30.06.2020
Material expenses 229.206.638 133.167.433
Stock differences -797.720 6.008.006
Energy and water expenses 13.131.171 11.646.079
Expenses with employee benefits 75.156.423 54.910.296
Value adjustments on fixed assets 21.660.172 26.189.892
Value adjustments on current assets 2.077 -335.224
Expenses with services provided by third
parties
13.538.623 9.603.560
Expenses with other taxes, fees and similar
payments
2.299.575 2.097.269
Other operating expenses 1.688.141 2.095.503
Total operating expenses 355.885.100 245.382.814

17. EXPENSES WITH EMPLOYEE BENEFITS

Employee benefit expenses include salaries, allowances and social security contributions. Short-term benefits are recognized as an expense as the services are provided.

Explanations 30.06.2021 30.06.2020
Salaries and allowances 73.677.109 62.316.659
Government subsidies for employee
spending
0 -8.617.551
Expenses with insurance and social
protection
1.479.314 1.211.188
TOTAL 75.156.423 54.910.296

18. LOSS (GAIN

The structure of financial losses (gains) is presented below:

Explanations 30.06.2021 30.06.2020
Earnings from exchange rate differences
related to monetary items expressed in
foreign currency
-1.418.462 -1.346.890
Interest losses -642.909 -552.061
Other financial gains 1.214.504 -143.712
Total losses / gains -846.867 -2.042.663

19. EARNINGS PER SHARE (EPS)

The calculation of earnings per share for H1 2021 and H1 2020 can be summarized as follows

Explanations 30.06.2021 30.06.2020
Number of shares at the beginning of the year 218.821.038 218.821.038
Shares issued during the year 0 0
Number of shares at the end of the period 218.821.038 218.821.038
Net profit 17.492.363 -4.445.027
Earnings per share (RON per share) Basic / diluted:

20. AFFILIATED PARTIES

he affiliated entities of COMPA SA are the following:

Affiliated parties % hold Holding
value
Object of activity
COMPA IT SRL 100,00 200.000 Custom software development activities
TRANS CAS SRL 99,00 742.500 Road transport of goods
RECASERV SRL 70,00 70.000 Event catering activities
ARINI HOSPITALITY SRL 100,00 19.703.000 Hotels and other similar accommodation facilities

The company ARINI HOSPITALITY SRL was founded in January 2021, which will carry out hotel activity, as a result of the development of the construction project of the Ibis-Mercure hotel complex.

In June 2021, according to the Decision of the Extraordinary General Meeting of Shareholders of Compa SA from 12.11.2020, as well as the Decision of the Extraordinary General Meeting of Trans-Cas SRL Associates of 12.01.2021, the share capital of Trans-CAS SRL was decreased from 1,500,000 lei , at 750,000 lei. The holding of Compa SA in the share capital of this affiliated company decreased from 1,498,450 to 742,500 lei.

The value of 755,950 lei, representing the share held by Compa from the decrease of the share capital will be returned to Compa by Trans-CAS in the next period.

The transactions carried out with the companies in which COMPA holds participations were the following (the amounts include VAT):

Explanations 30.06.2021 30.06.2020
Companies in which it holds
securities
Purchases of
goods and
service
Sales of goods
and services
Purchases of
goods and
service
Sales of goods
and services
TRANSCAS S.R.L. 8.707.707 245.724 5.503.767 254.886
COMPA IT S.R.L. 1.438.305 23.613 1.288.175 21.893
RECASERV S.R.L. 629.114 1.511 533.034 28.306
ARINI HOSPITALITY SRL 0 812.245 0 0

The mutual debts and receivables registered on 30.06.2021 and 30.06.2020 are the following:

Receivables receivable from COMPA SA from:

Explanations 30.06.2021 30.06.2020
TRANS C.A.S. SRL 851.280 157.742
COMPA-IT SRL 3.492 3.191
RECASERV SRL 0 16.819
ARINI HOSPITALITY SRL 2.635 0

Debts to be paid by COMPA SA to:

Explanations 30.06.2021 30.06.2020
TRANS C.A.S. SRL 4.206.137 3.364.835
COMPA-IT SRL 926.538 806.028
RECASERV SRL 344.547 397.650
ARINI HOSPITALITY SRL 0 0

Administrators of the COMPA Group.

NAME FUNCTION
DEAC Ioan Chairman & CEO
MICLEA Ioan Vice president / CFO
MAXIM Mircea Florin Administrator
BALTEŞ Nicolae Chairman of the Audit Committee
NEACŞU Vlad- Nicolae Member of the Audit Committee

On behalf of the Board of Directors,,

Chairman & CEO, Vice president / CFO.

Ioan DEAC Ioan MICLEA

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