MedLife S.A. — Audit Report / Information 2020

Sep 7, 2020

No. 95/7.09.2020

To: BUCHAREST STOCK EXCHANGE FINANCIAL SUPERVISORY AUTHORITY

CURRENT REPORT

Current report drafted according to the stipulations of ASF Regulation no. 5/2018 on issuers of financial instruments and market operations and Law no. 24/2017 on issuers of financial instruments and market operations

Report Date: 7 September 2020

Name of the issuing company: MED LIFE S.A. ("MedLife" or "The Company")

Registered Office: Bucharest, Calea Grivitei, no. 365, district 1, Romania

Fax number: 0374 180 470

Unique Registration Code at the National Office of Trade Registry: 8422035

Order number on the Trade Registry: J40/3709/1996

Subscribed and paid-in share capital: 5,536,270.5 RON

Regulated market on which the issued securities are traded: Bucharest Stock Exchange, Premium Category

Significant events to report:

Auditor`s report in compliance with art. 82 of Law no. 24/2017 and ASF Regulation no. 5/2018

Med Life S.A. inform the shareholders and investors in relation to the issuance of the Independent Limited Assurance Report on the information included in the Current Report no. 93 issued by Med Life S.A. in accordance with the requirements of art. 82 of Law no. 24/2017 and ASF Regulation no. 5/2018. The report in attached to the present current report.

Mihail Marcu Chief Executive Officer

________________

Deloitte Audit S.R.L. Clădirea The Mark Tower, Calea Griviței nr. 82-98, Sector 1, 010735 București, România

Tel: +40 21 222 16 61 Fax: +40 21 222 16 60 www.deloitte.ro

INDEPENDENT LIMITED ASSURANCE REPORT ON THE INFORMATION INCLUDED IN THE CURRENT REPORT ISSUED BY THE COMPANY IN ACCORDANCE WITH THE PROVISIONS OF LAW NO. 24/2017 AND REGULATION NO. 5/2018

To the Board of Directors, Med Life S.A.

1. In accordance with the provisions of art. 144.B, point 4 from Regulation no. 5/2018 issued by the Financial Supervisory Authority ("the FSA"), and further to your request, we have been engaged by Med Life S.A. ("the Company"), to report as an independent conclusion of limited assurance on the information included in the current report prepared by the Company and sent on September 7, 2020, to the Bucharest Stock Exchange ("the BSE") and the FSA (thereafter Current report).

The Current report has been prepared by the Company's management in order to report to the FSA pursuant to the requirements of Law no. 24/2017 art. 82 (1) - (4) and Regulation no. 5/2018 art. 144.B (1) - (3) of ASF, for the period January 1, 2020 – June 30, 2020.

Management's Responsibility

1. Management is responsible for the preparation and fair presentation of the Current report and of the transactions included in the Current report that are free of material misstatement, in accordance with article 82 of Law no. 24/2017 and Regulation no. 5/2018, art 144.B (1) – (3), and for the information presented in therein. This responsibility includes: designing, implementing and maintaining an internal control relevant to the preparation and presentation of the Current report that is free of material misstatement, due to fraud or error. Also, this responsibility includes compliance with the provisions of article 82 of Law no. 24/2017 and Regulation no. 5/2018, art 144.B (1) – (3).

Management is responsible for maintaining adequate supporting documents regarding the Current report and for providing the auditor with complete and accurate documents and information.

Management is responsible for preventing and detecting fraud and ensuring the Company's compliance with the legislation and regulations in force.

Auditor's Responsibility

1. Our responsibility is to analyse the reported transactions included by the Company in the Current report as included in Appendix 1 and to report in the form of an independent conclusion of limited assurance, based on the evidence obtained. We conducted the engagement in accordance with International Standard on Assurance Engagements ("ISAE") 3000 regarding assurance engagements other than Audits or Reviews of Historical Financial Information. This standard requires that we plan and perform our procedures in order to obtain a limited assurance whether the transactions included in the Current report are in accordance, in all material respects, with the provisions of article 82 of Law no. 24/2017 and Regulation no. 5/2018, art 144.B (1) – (3), as basis for our independent conclusion.

2. 1. We apply the International Standard on Quality Control 1 and, accordingly, maintain a comprehensive system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements. We have complied with the independence and other ethical requirements of the Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants, which is founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour.
3. 1. The selected procedures depend on our understanding of the Current report and of other circumstances of the engagement, as well as on our judgment of the areas that may show significant misstatements. In developing our understanding on the transactions included in the Current report and on the transactions reported in the Current report we took into consideration the Company's internal control relevant to the preparation and presentation of the Current report in accordance with the provisions of article 82 of Law no. 24/2017 and Regulation no. 5/2018, art 144.B (1) – (3), in order to establish the procedures that are appropriate in these circumstances, but not for the purpose of expressing a conclusion on the effectiveness of internal control for the preparation and fair presentation of the Company's Current report and in carrying out the reported transactions.
4. 1. The procedures performed in a limited assurance engagement vary in nature and timing from, and are less in extent than for, an absolute or reasonable assurance. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had an absolute or reasonable assurance engagement been performed. This report does not constitute a legal opinion. Accordingly, we do not express a reasonable assurance opinion about whether the Current report has been prepared, in all material respects, in accordance with the requirements specified in the first paragraph hereof.
5. 1. We formed our conclusion based on, and in connection with, the aspects revealed herein. In our opinion, the evidence we have obtained is sufficient and adequate to form a basis for our limited assurance conclusion.

Summary of work performed

• 1. Our procedures have been conducted only on the transactions included in the Current report related to the transactions concluded by the Company, as follows:
  2. a) We obtained from the Company the Current report, signed by the management, as included in Appendix 1;
  3. b) For the transactions presented in the Current report we compared the information included in the Current report to the information necessary to be included in such report as per article 82 of Law no. 24/2017 and Regulation no. 5/2018, art 144.B (1) – (3): parties, date of conclusion and nature of the document, description of the object thereof, total value or his estimation, mutual receivables, guarantees established, payment terms and methods;
  4. c) For the transactions included in the Current report we observed that the reports have been signed by the management with the necessary authority;
  5. d) For the transactions included in the Current report we compared the information included in the Current report matches the information included in the signed documents. We observed the material aspects of the following details:
     • the signing date of the documents;
     • the nature of the documents;
     • the description of the type of goods/services indicated in the documents;
     • the total value of the transaction, either realised or estimated;
     • whether the documents have been signed by all of the parties;
     • the mutual receivables;
     • guarantees established;
     • payment terms and methods.
  6. e) To the extent that there is an observable market price for the goods or services included in the transactions presented in the Current report, we have discussed with the management on how such prices were determined and whether, on a case by case basis, the determined prices are in line with observable market prices used by other (third) parties for similar services or goods. If there are no observable market prices available, we have assessed whether such transactions were carried out in accordance with other transactions approved and signed by the Company's management as detailed in procedure d).

Conclusion

1. Based on the procedures performed, nothing came to our attention to make us believe that the transactions reported in the Current report are not in compliance, in all material respects, with the requirements of Law no. 24/2017 art 82 and Regulation no. 5/2018, art 144.B (1) – (3).

Other Matters

1. This report is solely for the purpose set forth in the first paragraph hereof and for your information and for the information of the BSE and the FSA and it is not to be used for any other purpose. Our report should not be deemed adequate for use by any party wishing to acquire rights over us, other than the Company, for any purpose or in any circumstances. Any party except the Company, which is granted access to our report or a copy hereof and choses to rely on our report (or a part thereof), shall do so on their own account. Our engagement was undertaken so as to report to the Board of Directors, those aspects that we are required to report in a limited independent assurance report, and not for other purposes. This report relates only to the items specified above and does not extend to any financial statements of the Company taken as a whole.

On behalf of: Deloitte Audit S.R.L.

Irina Dobre

For signature, please refer to the original Romanian version.

Bucharest, Romania 7 September 2020