SIF Oltenia S.A.

Earnings Release • Feb 25, 2021

SOCIETATEA DE INVESTIȚII FINANCIARE OLTENIA S.A.

PRELIMINARY FINANCIAL RESULTS

on 31st December 2020

prepared in accordance with Rule no. 39/2015 for the approval of Accounting Regulations compliant with International Standards of Financial Reporting,

applicable to authorized entities, settled and supervised by the Financial

Supervision Authority from the Sector of Financial Instruments and Investments

UNAUDITED

Contents

PRELIMINARY FINANCIAL RESULTS

	page
INDIVIDUAL STATEMENT OF PROFIT OR LOSS AND OF OTHER ELEMENTS OF THE COMPREHENSIVE INCOME …………………………………	1
INDIVIDUAL STATEMENT OF FINANCIAL POSITION	2
INDIVIDUAL STATEMENT OF EQUITY CHANGES …………………	3 - 4
INDIVIDUAL STATEMENT OF TREASURY FLOWS	5

Individual statement of profit or loss and of other elements of the comprehensive income for the financial exercises ended on 31st December 2020

In RON	Note	31st December 2020	31st December 2019
Incomes
Gross incomes from dividends	6	70,945,772	125,311,887
Incomes from interests	7	306,077	1,047,964
Other operational incomes	8	164,113	17,499,019
Net profit from differences of exchange rate		(794)	6,446,082
Profit from financial assets at fair value through the profit or loss account		47,147	818,856
Expenses
Commissions, fees, administration and supervision fees	9	(2,824,554)	(3,057,530)
Incomes from restatement of provisions		292,467	5,505,632
Other operational expenses	10	(13,876,787)	(19,959,626)
Profit before taxation		55,053,441	133,612,284
Profit tax	11	(2,822,421)	(9,480,010)
Net profit of the financial year		52,231,020	124,132,274
Other elements of the comprehensive income
Earnings related to the transfer of financial assets assessed at fair value through other elements of the comprehensive income, net of tax, recognized in the result carried forward		48,381,669	11,499,712
Reserve variation from the reassessment of the tangible assets, net of deferred tax		-	-
Net variation of the fair value of financial assets assessed through other elements of the comprehensive income		(140,861,412)	431,863,731
Fair value reserve of the financial assets assessed through other elements of the comprehensive income delivered, transferred into the result carried forward, net of tax		(47,133,906)	(12,692,593)
Total Other Elements of the Global Result		(139,613,649)	430,670,850
Total comprehensive income for the period		(87,382,629)	554,803,124
Result per share
Basic	25	0.1000	0.2140
Diluted		0.1000	0.2140

Sorin – Iulian Cioacă Mihai Trifu President / General Manager Vice – president / Deputy General Manager

Sichigea Elena Economic Manager

Individual statement of financial position for the financial exercises ended on 31st December 2020

In RON	Note	st December 31 2020	31st December 2019
Assets
Cash and cash equivalents	12	4,279,513	13,946,292
Deposits placed in banks	13	26,602,893	49,351,648
Financial assets assessed at fair value through other elements of the comprehensive income	14	2,014,682,452	2,276,607,625
Financial assets assessed at fair value through the profit or loss account	14	3,598,943	3,551,796
Credits and receivables	15	191,867	31,795,265
Tangible assets	16	10,880,906	11,429,190
Real estate investments	17	675,090	631,919
Other assets	18	171,393	2,154,521
Total assets		2,061,083,057	2,389,468,256
Liabilities
Payable dividends	19	61,222,189	46,244,022
Payable taxes and fees	20	805,811	3,553,116
Deferred tax payables	21	116,202,339	152,219,983
Other payables	22	10,655,357	6,492,351
Total payables		188,885,696	208,509,472
Equity
Registered capital	23	52,214,914	58,016,571
Legal reserves		11,603,314	11,603,314
Differences from fair value changes of financial assets assessed at fair value through other elements of the comprehensive income		579,141,262	766,950,926
Other reserves	24	632,424,325	712,024,674
Reserves from revaluation of tangible assets		7,169,734	7,498,432
Losses related to buyback of shares		(59,747,655)	(47,946,784)
Own shares		(2,214,914)	(1,962,259)
Retained earnings except for the retained earnings originated in the adoption for the first time of IAS 29		599,375,361	550,641,636
Current profit		52,231,020	124,132,274
Total equity		1,872,197,361	2,180,958,784
Total payables and equity		2,061,083,057	2,389,468,256

Sorin – Iulian Cioacă Mihai Trifu President / General Manager Vice – president / Deputy General Manager

Sichigea Elena Economic Manager

SOCIETATEA DE INVESTIȚII FINANCIARE OLTENIA S.A.

Individual statement of own equity changes

for the financial exercises ended on 31st December 2020

In RON	Registered capital	Own shares	Losses from buyback of shares	Reserves from the reassessment of tangible assets	Legal reserves	Other reserves	Differences from changes in the fair value of financial assets assessed through other elements of the comprehensive income	Other elements of equity	Cumulated profit	TOTAL
BALANCE ON JANUARY 1ST 2020	58,016,571	(1,962,259)	(47,946,784)	7,498,432	11,603,314	712,024,674	770,012,609	(3,061,683)	674,773,910	2,180,958,784
COMPREHENSIVE INCOME
Profit of the financial exercise									52,231,020	52,231,020
Other elements of the comprehensive income
1. Reserve variation from the reassessment of the tangible assets, net of deferred tax				(328,698)					328,698	-
2. Net variation of the differences from the change in the fair value of financial assets assessed through other elements of the comprehensive income							(140,861,412)			(140,861,412)
3. Fair value reserve of the financial assets assessed at the fair value through other elements of the comprehensive income delivered, transferred into the result carried forward, net of tax							(47,133,906)		48,381,669	1,247,763
TOTAL COMPREHENSIVE INCOME for the period	-	-	-	(328,698)	-	-	(187,995,318)	-	100,941,387	(87,382,629)
Deferred tax for the retained earnings that are a taxed unachieved reassessment surplus									23,358	23,358
Other reserves – own financial sources										-
Other reserves – shares buyback						71,917,360			(71,917,360)	-
Shares buyback – cancellation of redeemed own shares		(6,054,312)	(163,318,580)							(169,372,892)
Reduction of registered capital – cancellation of redeemed own shares	(5,801,657)	5,801,657						185,654		185,654
Coverage of losses from buyback of shares			151,517,709			(151,517,709)				-
Shareholders transactions directly recognized in equity										-
1. Prescribed dividends according to the law – transfer to the profit or loss account from other reserves										-
2. Payable dividends for 2019									(52,214,914)	(52,214,914)
TOTAL TRANSACTIONS WITH SHAREHOLDERS DIRECTLY RECOGNIZED IN EQUITY	-	-	-	-	-	-	-	-	(52,214,914)	(52,214,914)
BALANCE ON DECEMBER 31ST 2020	52,214,914	(2,214,914)	(59,747,655)	7,169,734	11,603,314	632,424,325	582,017,291	(2,876,029)	651,606,381	1,872,197,361
Sorin – Iulian Cioacă		Mihai Trifu
President / General Manager Vice –	president		/Deputy General Manager				Sichigea Elena

Economic Manager

SOCIETATEA DE INVESTIȚII FINANCIARE OLTENIA S.A.

Individual statement of own equity changes

for the financial exercises ended on 31st December 2020

In RON	Registered capital	Own shares	Losses from buyback of shares	Reserves from the reassessment of tangible assets	Legal reserves	Other reserves	Differences from changes in the fair value of financial assets assessed through other elements of the comprehensive income	Other elements of equity	Cumulated profit	TOTAL
BALANCE ON JANUARY 1ST 2019	58,016,571			7,844,289	11,603,314	699,846,343	350,841,468	(3,061,680)	635,029,477	1,760,119,782
COMPREHENSIVE INCOME
Profit of the financial exercise	-	-		-	-	-	-	-	124,132,274	124,132,274
Other elements of the comprehensive income
1. Reserve variation from the reassessment of the tangible assets, net of deferred tax	-	-		(345,857)	-	-	-	-	345,857	0
2. Net variation of the differences from the change in the fair value of financial assets assessed through other elements of the comprehensive income	-	-		-	-	-	431,863,734	(3)	-	431,863,731
3. Fair value reserve of the financial assets assessed at the fair value through other elements of the comprehensive income delivered, transferred into the result carried forward, net of tax	-	-		-	-	-	(12,692,593)	-	11,499,712	(1,192,881)
TOTAL COMPREHENSIVE INCOME for the period		0	0	(345,857)	0	0	419,171,141	(3)	135,977,843	554,803,124
Deferred tax for the retained earnings that are a taxed unachieved reassessment surplus	-	-		-	-	-	-	-	26,390	26,390
Other reserves – own financial sources	-	-		-	-	-	-	-	-	-
Other reserves – shares buyback	-	-		-	-	12,178,331	-	-	(12,178,331)	0
Shares buyback	-	(1,962,259)	(47,946,784)	-	-	-	-	-	-	(49,909,043)
Shareholders transactions directly recognized in equity	-	-		-	-	-	-	-	-	-
1. Prescribed dividends according to the law – transfer to the profit or loss account from other reserves	-	-		-	-	-	-	-	-	-
2. Payable dividends for 2018	-	-		-	-	-	-	-	(84,081,469)	(84,081,469)
TOTAL TRANSACTIONS WITH SHAREHOLDERS DIRECTLY RECOGNIZED IN EQUITY	0		0 0	0	0	0	0	0	(84,081,469)	(84,081,469)

BALANCE ON DECEMBER 31ST 2019 58,016,571 (1,962,259) (47,946,784) 7,498,432 11,603,314 712,024,674 770,012,609 (3,061,683) 674,773,910 2,180,958,784

Sorin – Iulian Cioacă Mihai Trifu

President / General Manager Vice - president/Deputy General Manager Sichigea Elena

Economic Manager

SOCIETATEA DE INVESTIȚII FINANCIARE OLTENIA S.A. Individual statement of treasury flows for the financial exercises ended on 31st December 2020

In RON

Name of the element	Reporting period
	31st December 2020	31st December 2019
A	1	2
Treasury flows from operating activities
Cash collection from customers, other cash collection	2,828,780	7,296,467
Cash collection from sales of financial investments (securities)	102,095,002	82,087,248
Payments for the purchase of shares	(5,842,999)	(371,509,910)
Payments to suppliers and employees, other payments	(11,108,454)	(11,447,469)
Payments to the state budget, social security budget and local budget	(3,379,755)	(5,639,284)
Received interests	330,603	1,005,521
Received dividends	68,123,351	119,451,653
Paid interests	(121,516)	-
Paid profit tax	(10,218,469)	(101,833,045)
Net cash from operating activities	142,706,543	(280,588,819)
Cash flows from investment activities
Payments for the purchase of tangible assets	(14,419)	(26,005)
Cash collection from sales of tangible assets	-	7,171
Net cash from investment activities	(14,419)	(18,834)
Cash flows from financing activities:
Cash collection from the issue of shares	-	-
Cash collection from short-term loans	29,000,000	-
Repayment of short-term loans	(29,000,000)	-
Cash collection from long-term loans	-	-
Payment of debts for financial leasing	-	-
Down payments for shares buyback	(137,675,609)	(66,856,382)
Paid dividends	(35,659,678)	(59,975,542)
Down payments to the Central Deposit for dividend payment	(40,047)	(84,597)
Paid tax on dividends	(1,707,799)	(2,149,900)
Net cash from financing activities	(175,083,133)	(129,066,421)
Net increase of cash and cash equivalents	(32,391,009)	(409,674,074)
Cash and cash equivalents at the beginning of the reporting period	63,254,884	472,928,958
Cash and cash equivalents at the end of the reporting period	30,863,875	63,254,884

Sorin – Iulian Cioacă Mihai Trifu President / General Manager Vice-president / Deputy General Manager

Sichigea Elena Economic Manager