UCM Resita S.A.

Quarterly Report • Feb 26, 2021

CURRENT REPORT As per Law no. 24/ 2017 and ASF Regulation no. 5/2018

Date of the report: 26.02.2021 Name of the issuing company: U.C.M. Resita S.A. Registered office: Charles de Gaulle Square, No. 15, Charles de Gaulle Plaza Building, 3^st Floor, Office Peles, Sector 1, Bucharest Administrative headquarters: Resita, Golului Street, no. 1, 320 053, Caras-Severin County Phone No.: 0255/217111; Fax: 0255/223082

Unique registration code: 1056654

Number at the Trade Register Office: J 40/13628/2011

Subscribed and paid-up capital: 10,993,390.40 lei

Requlated market where the issued securities are traded: Bucharest Stock Exchange

Important events to report: Report of the Preliminary Financial Statements for the year 2020

S.C. U.C.M. Resita S.A. informs the general public about the availability of the the Report of the Preliminary Financial Statements for the year 2020

The Report of the Preliminary Financial Statements for the year 2020 can be found, as of 26.02.2021 at 05:00 PM., on the website http://www.ucmr.ro and the IRIS platform link.

As of the same date, the persons interested may, on written request, obtain a copy of these documents. The application will be submitted/sent directly to the administrative headquarters of the company (workstation) located in Resita, Golului Street, no. 1, 320053, Caras-Severin County or at fax number 0255/223082.

The table below shows the statement of assets, liabilities and equity on December 31, 2020:

Lei

No.	Designation of items	31.12.2019	31.12.2020
	Turnover (2+3-4)	35,818,804	26,090,175
2	Production sold	35,816,331	26,090,175
3	Revenues from sale of goods	2,473
4	Trade discounts granted
5	Changes in stocks: Credit babalance	4,037,230	1,857,986
	Debit balance
6	Revenues from sale of tangible assets	13.535.734
	Production of accounting year (1+/-5+6)	53,391,768	27,948,161
8	Other operating revenues	11,564,356	8,805
9	Operating revenues, total (7+8)	64,956,124	27,956,966
10	Financial revenues, total	852,704	664,291
11	Total revenues (9+10)	65,808,828	28,621,257

Pagina 1 din 3 Cont bancă: RO92RZBR0000060000568127 / LEI · RO50RZBR0000060003122311 / EU · RO76RZBR0000060003122328 / USD · Banca: Raiffeisen Bank Reșița Cont bancă: RO98RNCB0100038238120001 / LEI · RO60RNCB0100038238120006 / EU · RO49RNCB0100038238120010 / USD · Banca: BCR Resita CIF:RO1056654· Inreg.Reg.Com.J 40/13628/2011

U.C.M. Reșița S.A. U.C.M. Resita S.A.

Sediu Social: Piata Charles de Gaulle, nr.15,Cladirea

Charles de Gaulle Plaza, etaj 3, birou Peles

O11857, Sector 1, Bucuresti, Romania

Sediu Administrativ: Str. Golului, Nr.1, 320053, Reșița, Romani

The structure of operating revenues is as follows:

No.	Designation of items	31.12.2019	31.12.2020
	Turnover	55.14%	93.32%
	Changes in stocks	6.22%	6.65%
3	Capitalized production	20.84%	0.00%
	Other operating revenues	17.80%	0.03%
	TOTAL	100.00%	100.00%

The expenses of the company are shown below:

			Lei
No.	Designation of items	31.12.2019	31.12.2020
	Material expenses	14,810,114	5,795,473
$\overline{c}$	Other external expenses (energy and water)	5,866,184	5,019,972
3	Expenses with the personnel	33,357,409	28,929,778
4	Adjustments	5,374,104	5,783,542
5	Other operating expenses of which:	20,602,371	6,331,105
5a	Expenses on disposal of fixed assets held for sale	11.875.402
6	Operating expenses, total	80,010,182	51,859,870
	Financial expenses	527,319	(3,720,224)
8	Total expenses	80,537,501	48,139.646

The structure of operating expenses is as follows:

No.	Designation of items	31.12.2019	31.12.2020
	Material expenses	19,04%	11,57%
2	Other external expenses (energy and water)	7,33%	9,68%
3	Expenses with the personnel	41,69%	55,78%
	Adjustments	6,72%	11,15%
5	Other operating expenses	25,22%	11,81%
	Operating expenses, total	100,00%	100,00%

U.C.M. Reșița S.A.

Sediu Social: Piata Charles de Gaulle, nr.15, Cladirea
Charles de Gaulle Plaza, etaj 3, birou Peles

Tel: +40-(0)255-217111 · Fax: +40-(0)255-223082

Sediu Administrativ: Str. Golului, Nr.1, 320053, Resita, Romania

011857, Sector 1, Bucuresti, Romania

experience the difference

contact@ucmr.ro · http://www.ucmr.ro

Lei No. Indicator name 31.12.2019 31.12.2020 1 Operating revenues 64,956,124 27,956,966 $\overline{2}$ 80,010,182 Operating expenses 51,859.870 3 Operating result $(15, 054, 058)$ $(23, 902, 904)$ $\overline{4}$ Financial revenues 852,704 664,291 5 Financial expenses 527,319 $(3,720,224)$ $\overline{6}$ Financial result 325,385 4,384,515 $\overline{7}$ Profit tax 704,909 2,229,508 8 Net result of the accounting year $(15, 433, 582)$ $(21, 747, 897)$

The net result of the financial year at the end of 2020 materialized in a net loss of 21.747.897 lei while in the same period of 2019 when the net loss was 15.433.582 lei.

Special Trustee Cosmin URSONIL GUI UI Special Trustee Nicoleta Liliana IONETE In insolvent?

The evolution of the results is shown below:

IS.C. U.C.M. Resita S.A.

(Company in insolvency, en procedure collective)

Preliminary yearly financial results on December 31, 2020

[All amounts are given in lei (RON) unless otherwise stated]

Statement of financial position on 31.12.2020

				Lei
Reference Statement of financial position IAS $1.10(a)$ , 113	Note	Balance sheet items	Balance on 01.01.2020	Balance on 31.12.2020
$IAS$ $1.54(a)$	$\overline{3}$	Tangile fixed assets
$IAS$ $1.54(c)$			127,573,176	122,608,308
	3 3	Intangible fixed assets Financial assets	8,456	3410
			16,526,714	13,187,652
		Total of fixed asse	144,108,346	135,799,370
$IAS$ $I.54(h)$	4	Trade receivables and receivables from affiliated entities	4,209,620	5,099,067
IAS $1.54(g)$	5	Stocks Deferred tax assets	21,941,779	23,155,306
IAS 1.54(o), 56	12	Deferred tax assets	14,673,797	13,114,358
$IAS$ $I.54(h)$	$\overline{4}$	Other receivables	1,353,702	833,428
IAS 1.54(i)	6	Cash and cash equivalents	9,683,023	9,200,420
		Prepayments	48,310	42,726
		Total of current assets	51,910,231	51,445,305
		TOTAL ASSETS	196,018,577	187,244,675
$IAS$ $1.54(k)$	7	Supplies and other trade payables
$\overline{IAS}\,1.54(k)$	$\overline{7}$	Taxes and other debts	37,254,641	36,443,159
IAS 1.54(o), 56	12		637, 557, 503	652,125,040
$IAS$ $1.54(l)$	8	Deferred tax debts	24,476,478	25,146,547
		Provisions	233,771,668	232,589,083
IAS 1.55, 20.24		Revenues în advance	11,425	11,277
		Total debts	933,071,715	946,315,106
		Total acssets minus Total debts	(737, 053, 138)	(759,070,431)
	9	Registered capital	601,685,084	601,685,084
	$\overline{\mathbf{3}}$	Revaluation reserves	130,468,666	125,996,792
	$\overline{9}$	Legal reserves	1,972,406	1,972,406
		Other reserves	16,088,620	16,088,620
	9	Carried over result	(1,471,834,332)	(1,483,065,436)
	9	Current result	(15, 433, 582)	(21, 747, 897)
	9	Profit sharing, establishing of legal reserves Total equity	(737, 053, 138)
				(759, 070, 431)
		TOTAL LIABILITIES	196,018,577	187,244,675

Special Trustees:

Cosmin URSONIU

S.C. U.C.M. Resita S.A. (Company in insolvency, en procedure collective)

Preliminary yearly financial results on December 31, 2020

[All amounts are given in lei (RON) unless otherwise stated]

Statement of comprehensive income on 31.12.2020

Lei

Reference
Statement of			31.12.2020
overall result IAS	Explanations	31.12.2019
$1.10(b)$ , $81(a)$
IAS 1.82(a) IAS
1.99,103	Operating revenues
		60,918,894	26,098,980
IAS 1.99, 103	Cost of sales	60,235,097	37,246,584
	Gross operting profit (loss)	683,797	(11, 147, 604)
IAS 1.99, 103	Distribution costs	81,997	393
	Administrative expenses	15,655,858	12,754,907
IAS 1.82(a) IAS
1.99,103	Financial revenues	852,704	664,291
$IAS$ $1.82(b)$	Financial expenses	527,319	(3,720,224)
IAS 1.85	Result before tax	(14, 728, 673)	(19,518,389)
$IAS$ $1.82(d)$ , $IAS$
12.77	Income tax expenses	704,909	2,229,508
	Net Profit (loss)	(15, 433, 582)	(21, 747, 897)
	Establishing of legal reserves under
	Law31/1990
IFRS $5.33(a)$ ,
1.82(e)	Profit attributable to:	-
IAS $1.83(b)(ii)$	Qwners of the Company	-
IAS 1.83(b (i)	Non-controlling interests

Special Trustees:

Cosmin URSONIU

S.C. U.C.M. Resita S.A.

(Company in insolvency, en procedure collective)

Preliminary yearly financial results on December 31, 2020 $[All\; amounts\; are\; given\; in\; lei\; (RON)\; unless\; otherwise\; stated]$

Statement of changes in equity for the year ended on December 31, 2020

$-1$ ei-

Balance on December 31 2020 IFRS		Net result of the current accounting year	the carried over result Registration of accounting errors from previous years to	Account closing -profit share		carried over result Transfer of the result of the accounting year 2019 to the	Transfer of surplus from revaluation reserves	Changes in equity- December 31 2020	Balance on 01.01.2020		Explanation/Desciption
601,685,084									601,685,084	N	Registered capital
125,996,792							(4,471,874)		130,468,666		Revaluation reserves
1,972,406									1,972,406		Legal reserves
264,275,842							4,471,874		259,803,968	U	representing surplus from revaluation Carried over result reserves
16,088,620									16,088,620	0	Other reserves
(1,747,341,278)	(4, 471, 874)	(4,471,874)		(4, 471, 874)	(4,471,874)				(1,731,638,300)		Carried over result
(21,747,897)									(15, 433, 582)	∞	Current result accounting of the year
(759,070,431)	(21,747,897)	(269, 396)							(737,053,138)	۰	Total

The legal reserves of the Company, constituted in accordance with the provisions of the Commercial Companies Act, as at 31 December 2020 amount to 1,972,406

within the legal reserves until their balance reaches 20% of the Company's share capital. If this reserve is used wholly or partly to cover losses or to distribute in The Company's legal reserve is partially constituted in accordance with the Companies Act, according to which 5% of the annual accounting profit is transferred

any form (such as the issuance of new shares unget the Companies Act), it becomes taxable in the calculation of corporation tax. We mention that on December $\sim$

S.C. U.C.M. Resita S.A.

(Company in insolvency, en procedure collective)

Preliminary yearly financial results on December 31, 2020

[All amounts are given in lei (RON) unless otherwise stated]

Statement of cash flows on 31.12.2020

			-Lei-
Name of the element	No.	Financial exercise ended on:
	line	31 decembre 2019	31 decembre 2020
OPERATING ACTIVITIES
Net profit+Result carried over from correction of
accounting errors	1	(14, 738, 398)	(19, 787, 786)
Adjustments for:
Adjusting the value of tangible and intangible assets	$\overline{2}$	5,209,178	4,862,962
Adjusting the value of financial assets	$\overline{3}$	169,416	(4, 410, 021)
Expenses (revenues) with adjustments for depreciation
of current assets	4	(117, 733)	(4,372,126)
Adjustments to the provisions for risks and expenses	5	164,659	(1,055,853)
Expenses with the donating granted	6
Revenues from interests and other financial income	$\overline{7}$	(42,760)	(124, 791)
Expenses with interests and other financial income	8
Cash flow before changes in working capital (row. 1
to $8)$	9	(9,355,638)	(24, 887, 615)
Decrease /(Increase) – customers and other assimilated
accounts	10	11,654,632	11,787,493
Decrease /(Increase) in stocks	11	9,839,797	(1,213,526)
Decrease /(Increase)- supplies and other assimilated
accounts	12	(8,347,136)	13,756,056
Cash flow from operating activities (row. 9 to 12)	13	3,791,655	(557, 592)
Revenue from interests	14	41,333	93,001
(Net increase) / Net decrease in restraint	15	(75,903)	168,830
Cash flow from operating activities (row.13 to 15)	16	3,757,085	(295, 761)
Investing activities
Cash payment for long-term purchasing of land and
other assets	17	(116,068)	(19,781)
Revenues from dividents	18	1,193	1,769
Net cash used in investing activities (row. 17 to 18)	19	(114, 875)	(18, 012)
Financing activities
Subsidies granted	20	$\overline{\phantom{0}}$	÷
Discounts of borrowed amounts	21	$\frac{1}{2}$
Net cash used in financing activities (row. 20 to 21)	22
Net increase/(Decrease) în cash and cash equivalents
$(row. 16+19+22)$	23	3,642,210	(313,773)
Cash and cash equivalents at the beginning of the year	24	5,515,303	9,157,513
Cash and cash equivalents at the end of the period
$(row. 23+24)$	25	9,157,513	8,843,740

Special Trustees:

Cosmin URSONIU

Indicator	Calculation method	Value
1. current liquidity	$1=2/3$	0.07
2. Current assets (lei)	2	51,402,579
3. Current liabilities (lei)	3	713,714,746
4. Level of indebtedness	$4 = 5/6$	#N/A
5. Borrowed capital (lei)	5
6. Capital employed (lei)	6	(759, 070, 431)
7. Turnover ratio of customer debits (days)	$7 = 8/9$ x (365)	58
8. Average balance of trade receivables (lei)	8	4, 164, 370
9. Turnover (lei)	9	26,090,175
10. Turnover ratio of fixed assets (days)	$10 = 11/12$ x (365)	1,900
11. Fixed assets (lei)	11	135,799,370
12. Turnover (lei)	12	26.090.175

Economic - Financial Indicators on 31.12.2020

Special Trustees:

Cosmin URSONIU