BSE Report 1st Quarter Results 2020 · Calea Turzii nr.178K, Etaj 1, Cluj-Napoca, România, PO: 400491 E-mail. [email protected] Web: Page 3 of 7 Profit and loss Account – 3 Month

CLUJ-NAPOCA

May 15th 2020

BSE Report

1st Quarter

Results 2020

Calea Turzii nr.178K, Etaj 1,

Cluj-Napoca, România, PO: 400491

E-mail. [email protected] Web: www.cemacon.ro

Page 2 of 7

3 Month Performance 2020

15,12 million lei operational profit (EBITDA)

10,56 million lei Net Profit

29,64 million lei Net Turnover with 7% less than 1st Q 2019

General Manager Statement

“The year 2020 started under good auspices; the level of demand for masonry materials remained at a good

level, even if lower than in the previous year.

The outbreak of the epidemic and, especially, the severity of the isolation measures imposed by the

authorities suddenly interrupted the positive market context and led us to change our strategy.

However, we managed to end the first quarter with a good commercial result, above expectations, and the

operational profit, although in the off-season, stood at a very high value.

We continue the investment projects we have started and which will bring us consistent energy and process

efficiencies. We maintain a high level of the investment budget for 2020.

Although the context of the epidemic has seriously affected the construction sector and the outlook for the

current year, Cemacon's strong financial position, strong shareholding, competitive product portfolio and

proven operational efficiency in recent years makes me optimistic that we will perform again this year.

I am confident that the players in the industry, at all levels, have gained maturity and experience compared

to the crisis after 2008, so that we can keep together this functional area of the economy, which matters so

much for everyone. I don't think there is any reason to panic about entering a new serious and lasting crisis.”




Page 3 of 7

Profit and loss Account – 3 Month Results 2020

In the period corresponding to Quarter 1 2020, the company registered a decrease of the net turnover by

7% compared to the same period of 2019, reaching the threshold of 29,64 milion lei. Compared to 2019, the

share of revenues from ceramic blocks and goods remained similar.

Changes in inventory revenues recorded higher values than in the previous period as a result of the gap

between the quantities produced and sold in Quarter 1 2020. Amounts related to other gains or losses

represent the cancellation of provisions made in the previous year.

Expenditure on raw materials and materials has grown by 21% as a result of the increase in the quantity

produced compared to the same period of the previous year, productivity marked by investments put into

operation as well as by a generalized increase in the purchase price for raw materials, materials and fuel

generated by the current economic context.

Wage expenditures recorded a 24% increase over the previous year due to a 15% increase in the number of

employees compared to the same period in 2019. Operating expenses increased with 12% compared to the

previous period from last year, being marked by the pace of development of the company's activity.

For the period ended March 31, 2020 CEMACON has an operating profit of 15,122,744 lei lei and a net

profit of 10,560,458 lei.

3.65

6.62 7.01

11.3110.55

11.56

21.49

31.85

29.64

1.65 0.77 0.81 0.49

1.48 2.04

9.35

17.38

15.12

31-Mar-12 31-Mar-13 31-Mar-14 31-Mar-15 31-Mar-16 31-Mar-17 31-Mar-18 31-Mar-19 31-Mar-20

-

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

18.00

20.00

22.00

24.00

26.00

28.00

30.00

32.00

34.00

Net Turnover & EBITDA Evolution (mil Lei)

Cifra de afeceri neta EBITDANet Turnover




Page 4 of 7

31-Mar-20 31-Mar-19 2020 vs 2019 2020 vs 2019

LEI LEI LEI %

Gross Turnover 31,161,315 33,915,991 (2,754,676) -8%

Net Turnover 29,639,336 31,850,982 (2,211,645) -7%

Venituri din vanzari 29,629,998 31,850,981 (2,220,983) -7%

Other operating revenues 2,107,956 2,225,763 (117,807) -5%

Other gains and losses 2,599,964 1,594,661 1,005,303 63%

Change in inventories of FG & WIP 5,822,927 2,875,671 2,947,255 102%

Raw materials and consumables (7,012,204) (5,807,224) (1,204,980) 21%

Personnel expenses (7,724,958) (6,236,129) (1,488,829) 24%

Other operating expenses (10,533,193) (9,441,224) (1,091,969) 12%

EBITDA 15,122,744 17,380,196 (2,257,452) -13%

Depreciation and amortization expenses (2,972,560) (2,212,260) (760,300) 34%

EBIT 11,917,930 14,850,240 (2,932,310) -20%

Financial income 421,435 676,720 (255,285) -38%

Financial expenses

(841,666) (718,774) (122,892)

17%

Financial result

(420,230) (42,054) (378,176)

899%

Profit before tax* 11,497,699 14,808,186 (3,310,487) -22%

Income tax expenses (937,241) (1,583,229) 645,988 -41%

Profit after tax 10,560,458 13,224,957 (2,664,499) -20%

* At the time of presentation of the results for Quarter 1 2020, no other comprehensive income and deferred tax items have been computed.

** EBITDA = Operating profit + Expenses with depreciation + Financial discounts granted - Income impairment of non-current assets

Statement of financial position – Results 31st of March 2020

31-Mar-20 31-Dec-19 2020 vs 2019 2020 vs2019

ASSETS LEI LEI LEI %

NON-CURRENT ASSETS

Property, plant and equipment 131,599,119 131,986,455 (387,336) 0%

Investment property 8,202,483 8,202,483 - 0%

Intangible 5,539,776 4,750,087 789,689 17%

Rights of use assets 21,601,519 22,081,760 (480,241) -2%

Investments 45,200 45,200 - 0%

Other non-current assets 337,272 339,627 (2,355) -1%

NON-CURRENT ASSETS TOTAL 167,325,369 167,405,612 (80,243) 0%




Page 5 of 7

31-Mar-20 31-Dec-19 2020 vs 2019 2020 vs2019

ASSETS LEI LEI LEI %

CURRENT ASSETS

Inventories 25,067,408 20,307,951 4,759,457 23%

Trade and other receivables 47,799,320 49,205,783 (1,406,463) -3%

Cash and cash equivalents 17,340,929 17,663,070 (322,141) -2%

CURRENT ASSETS TOTAL 90,207,657 87,176,804 3,030,853 3%

TOTAL ASSETS

257,533,026

254,582,416

2,950,610

1%

LIABILITIES

CURRENT LIABILITIES

Trade and other payables 18,267,692 21,623,217 (3,355,525) -16%

Loans and borrowings 7,823,481 7,823,481 - 0%

Lease liabilities 937,649 916,882 20,768 2%

Obligations under finance leases 2,184,343 2,189,889 (5,546) 0%

Grants received 99,911 99,911 - 0%

Tax liability 1,926,893 989,652 937,241 95%

Provisions 6,525,389 9,091,664 (2,566,275) -28%

CURRENT LIABILITIES TOTAL 37,765,359 42,734,696 (4,969,336) -12%

NON-CURRENT LIABILITIES

Non-current trade and other liabilities - - - 0%

Loans and borrowings 25,997,401 27,941,650 (1,944,249) -7%

Lease liabilities 6,153,699 6,326,946 (173,247) -3%

Obligations under finance leases 7,336,304 7,831,473 (495,169) -6%

Grants received 865,724 893,569 (27,845) -3%

Deferred tax 555,530 555,530 - 0%

Provisions 2,233,892 2,233,892 - 0%

NON-CURRENT LIABILITIES TOTAL 43,142,550 45,783,060 (2,640,510) -6%

TOTAL LIABILITIES 80,907,908 88,517,756 (7,609,848) -9%

NET ASSETS 176,625,118 166,064,660 10,560,458 6%

EQUITY

Issued capital as per IFRS 59,779,702 59,779,702 - 0%

TOTAL EQUITY 176,625,118 166,064,660 10,560,458 6%




Page 6 of 7

Fixed assets, reported as of December 31, 2019, did not change significantly – was recorded their depreciation, as well

as the EUA certificates as intangible assets.

Current assets increased by 3% compared to the end of 2019.

Bank debts and loans recorded a decrease compared to 2019, as a result of the repayment of the rates and interest

according to the due date, being no interruptions or delays in this process. As a result of the aplication of the standard

IFRS 16, the company recognized the lease liability related to the rental contracts, in conjunction with the increase in

assets. Current income tax liabilities increased significantly due to the positive financial results obtained at the end of

Q1 2020.

At the end of the period ended 31 March 2020, the net assets of the company recorded a 6% increase as compared

to the end of 2019, exceeding 176 milion lei.

Main Financial Ratios

Main Financial Ratios 31-Mar-20

1. Current liquidity indicator 2.39

2. Leverage indicator 19%

3. Turnover speed for client debit items (days) 28

4. Turnover speed for total assets 94%

***

The report, together with the related documents, can be consulted starting with 15 May 2020 at 09:00 at the company

headquarters on Calea Turzii Street, no. 178K, Hexagon Offices, Cluj-Napoca or electronically on the company's website:

www.cemacon.ro and on the Bucharest Stock Exchange website: www.bvb.ro

***

The results presented are prepared in accordance with IFRS standards and are preliminary, and will be

subject to financial audit according to legal provisions.

***

CEMACON SA is the largest producer of ceramic blocks with Romanian capital and the market leader in Transylvania.

The company operates the most modern and largest manufacturing capacity in Romania with innovative, differentiated

products that bring added value to users, at very competitive production costs. CEMACON SA is a company listed on the

Bucharest Stock Exchange; the company management is professional, independent, having strong sector expertise.

1

Cluj-Napoca

15th of May 2020

SC CEMACON SA

Cod Fiscal 677858

Cod Registrul Comertului J12/2466/2012

INDIVIDUAL FINANCIAL STATEMENTS UNAUDITED

FOR THE PERIOD ENDED 31 St March 2020

Prepared according to International Reporting Standards

2

Cuprins (Contents)

Situatia individuala a pozitiei financiare (Statement of individual financial position) .............................. 3

Situatia individuala a rezultatului global (Statement of individual comprehensive income) .................... 5

Situatia individuală a fluxului de numerar (Statement of individual cash - flow) ................................... 6

Situatia individuală a modificarilor de capital (Statement of individual changes in equity) ……………………8

1. Legal principals .......................................................................................................................................... 9

2. Accounting policies ................................................................................................................................... 9

3. Accounting estimates ................................................................................................................................ 9

4. Revenues ................................................................................................................................................... 9

5. Other operational revenues ...................................................................................................................... 9

6. Operating expenses ................................................................................................................................ 10

7. Personnel expenses ................................................................................................................................ 11

8. Financial income and expenses............................................................................................................... 11

9. Inventory ................................................................................................................................................. 11

10. Commercial receivables and other receivables .................................................................................... 12

11. Trade and other payables ..................................................................................................................... 13

12. Issued Capital ........................................................................................................................................ 13

13. Transactions with Affiliates ................................................................................................................... 14

14. Cash and cash equivalents .................................................................................................................... 16

15. Adjustments of accounting errors ........................................................................................................ 16

16. Other information ................................................................................................................................. 16

17. Contingencies ........................................................................................................................................ 17

CEMACON SA

Situatia individuală a pozitiei financiare (Standalone Statement of financial position)

pentru perioada incheiata la 31 Martie 2020 (for the period ended 31 March 2020) (toate sumele sunt exprimate in RON, daca nu este specificat altfel) (all amounts are expressed in RON, unless otherwise stated)

3

Notes 31-Mar-20 31-Dec-19

LEI LEI

ACTIVE (ASSETS)

ACTIVE IMOBILIZATE NON-CURRENT ASSETS Imobilizari corporale 131,599,119 131,986,455

Property, plant and equipment

Investitii imobiliare 8,202,483 8,202,483

Investment property

Imobilizari necorporale 5,539,776 4,750,087

Intangible

Drept de utilizare a activelor in leasing* 21,601,519 22,081,760

Right of use assets

Investitii in actiuni 45,200 45,200

Investments

Alte active imobilizate 337,272 339,627

Other non-current assets

167,325,369 167,405,612

ACTIVE CIRCULANTE

CURRENT ASSETS Stocuri 9 25,067,408 20,307,951

Inventories

Creante comerciale si similare 10 47,799,320 49,205,783

Trade and other receivables

Alte active financiare - -

Other financial assets

Numerar si echivalente numerar 14 17,340,929 17,663,070

Cash and cash equivalents

90,207,657 87,176,804

Active clasificate drept detinute în vederea vânzãrii - -

Assets classified as held for sale

TOTAL ACTIVE (TOTAL ASSETS) 257,533,026 254,582,416

DATORII (LIABILITIES)

DATORII CURENTE

CURRENT LIABILITIES Datorii comerciale si similare 11 18,267,692 21,623,217

Trade and other payables

Imprumuturi 7,823,481 7,823,481

Loans and borrowings

Datorii din operatiuni de leasing* 937,649 916,882

Lease liabilities

Obligatii din leasing financiar** 2,184,343 2,189,889

Obligations under finance leases

Subventii pentru investitii 99,911 99,911

Grants received

Datorii privind impozitul pe profit 1,926,893 989,652

Tax liability

Provizioane 6,525,389 9,091,664

Provisions

37,765,359 42,734,696

CEMACON SA

Situatia individuală a pozitiei financiare (Standalone Statement of financial position)


4


LEI LEI

DATORII PE TERMEN LUNG NON-CURRENT LIABILITIES Datorii comerciale si similare 11 - -

Non-current trade and other liabilities

Imprumuturi 27,997,401 27,941,650


Datorii din operatiuni de leasing* 6,153,699 6,326,946

Lease liabilities




Grants received

Impozit amanat 555,530 555,530

Deferred tax

Provizioane 2,233,892 2,233,892

Provisions

43,142,550 45,783,060

TOTAL DATORII (TOTAL LIABILITIES) 80,907,908 88,517,756

ACTIVE NETE (NET ASSETS)

176,625,118 166,064,660

CAPITAL SI REZERVE (EQUITY) Capital social 12 59,779,702 59,779,702

Issued capital

Beneficii acordate angajatilor in instrumente de capitaluri proprii - -

Benefits granted to employees in equity instruments

Impozit profit amanat (1,314,817) (1,314,817)

Deffered Tax

Actiuni proprii - -

Own Shares

Prime legate de emiterea de actiuni 253,004 253,004

Share premium

Rezerve din reevaluare aferente active destinate vanzarii - -

Amounts recognised in other comprehensive income and

accumulated in equity relating to non-current assets held for sale

Rezerve 43,382,696 42,807,812

Reserves

Rezultat reportat 74,524,532 64,538,959

Retained earnings

Interesele care nu controleaza - -

Non-controling interest

TOTAL CAPITALURI (TOTAL EQUITY)

176,625,118 166,064,660

CEMACON SA

Situatia individuală a rezultatului global (Standalone Statement of comprehensive income)


5

Notes 31-Mar-20 31-Mar-19

LEI LEI

Venituri din vanzari 4 29,629,998 31,850,981

Sales revenues

Alte venituri din exploatare 5 2,107,956 2,225,763

Other operating revenues Alte castiguri si pierderi 5 2,599,964 1,594,661

Other gains and losses Variatia stocurilor 5,822,927 2,875,671

Change in inventories of FG & WiP Materii prime si consumabile 9 (7,012,204) (5,807,224)

Raw material and consumables used Cheltuieli de personal (7,724,958) (6,236,129)

Personnel Expenses Cheltuieli cu amortizarea (2,972,560) (2,212,260)

Depreciation and amortisation expenses Alte cheltuieli din exploatare 6 (10,533,193) (9,441,224)

Other operating expenses

Profit / (Pierdere) din exploatare 11,917,930 14,850,240

Profit / (Loss) from operation Venituri financiare 8 421,435 676,720

Financial income Cheltuieli financiare 8 (841,666) (718,774)

Financial expenses

Rezultat Financiar (420,231) (42,054)

Financial Result

Profit / (Pierdere) inainte de impozitare 11,497,699 14,808,186

Profit before tax Cheltuieli cu impozite (937,241) (1,583,229)

Profit 10,560,458 13,224,957

Profit after tax

CEMACON SA

Situatia individuală a fluxului de numerar (Standalone Statement of cash flow)


6

31-Mar-20 31-Mar-19

LEI LEI

Fluxuri din activitati de exploatare

Cash flow from operating activities

Incasari de la clienti 36,349,086 31,432,275

Customer encashments Plati catre furnizori (19,949,544) (19,630,817)

Supplier payments Plati catre angajati (5,842,605) (4,570,883)

Payments to employees Plati impozite si taxe (4,047,079) (4,330,292)

Tax Payments Impozit pe profit platit - -

Income Tax Paid Incasari din asigurari - -

Inssurance encashments Plati de asigurari (161,148) (112,791)

Insurrance payments Dobanzi platite (487,010) (583,069)

Interest Paid Alte incasari 173,528 -

Other Encashmants Alte plati - -

Other Payments Plati ctr leasing pe termen scurt si active de val. mica (22,961) (55,962)

Payments for short term leasing contracts and low value assets

Trezoreria neta din activitati de exploatare 6,012,267 2,148,462

Cash from operating activities

Fluxuri de trezorerie din activitati de investitii Cash flow from investing activities

Plati pentru achizitionarea de actiuni - -

Payments for aquiring shares Plati pentru achizitionarea de imobilizari corporale (3,071,832) (1,987,437)

Payments for aquiring assets Incasari din vanzarea de imobilizari corporale 33,689 322

Encashments from sold assets Dobanzi incasate 3,756 42,977

Encashments from interest Credite catre parti afiliate - (150,000)

Loans to affiliated parties Incasari credite parti affiliate - -

Encashments from third parties

Dividende incasate - -

Encashments from dividends

Trezoreria neta din activitati de investitie (3,034,387) (2,094,138)

Cash from investing activities

CEMACON SA

Situatia individuală a fluxului de numerar (Standalone Statement of cash flow)


7

31-Mar-20 31-Mar-19

LEI LEI

Fluxuri de trezorerie din activitati de finantare Cash flow from financing activities Incasari din aport de capital - 110,320

Encashments from share capital increase Incasari din imprumuturi - -

Encashments from loans Plata datoriilor aferente leasing-ului financiar-capital (1,240,256) (363,777)

Payments for financial lease Plata datoriilor aferente leasing-ului financiar-dobanda (111,610) (107,971)

Payments for financial lease-interest

Rambursari credite (1,944,250) (1,666,500)

Dividends paid and bank interest paid Incasari garantie achizitionare actiuni - -

Encashments from share purchase

Plata garantie achizitionare actiuni - -

Payment for share purchase

Trezoreria neta din activitati de finantare (3,296,116) (2,027,928)

Cash from financing activities

Efectul diferentelor de curs (3,905) (9,913)

Effect of exchange rate changes

Crestere /scadere neta de numerar (322,141) (1,983,517)

Net increase/decrease in cash and cash equivalents

Numerar si echivalente de numerar la inceputul perioadei 17,663,070 19,515,952

Cash and cash equivalents at beginning of period

Numerar si echivalente de numerar la sfarsitul perioadei 17,340,929 17,532,435

Cash and cash equivalents at end of period

CEMACON SA

Situația modificării capitalurilor proprii individuale (Statement of standalone changes in equity)


8

Capital subscris

si ajustari

Prime de

emisiune

Rezerve din

reevaluare aferente

active detinute spre

vanzare

Rezerve din

reevaluare Rezerve legale Alte rezerve

Rezultat

nedistribuit

Alte elemente

ale

capitalurilor

proprii

Prima aplicare a

IAS29 Total

Issued capital

and adjustments Share Premium

Revaluation reserve

for HFS assets

Reevaluation

reserves Legal reserves

Other

reserves

Undistributed

result

Other capital

elements

1st application

of IAS 29 Total

31-Dec-18 57,067,443 144 1,139,240 12,815,735 3,353,064 9,557,916 42,600,217 1,909,974 - 128,443,734

Rezultatul global current - - - - - - 34,097,571 - - 34,097,571

Current global result

Ajustari erori contabil - - - - - - - - - -

Accounting Errors

Majorare capital social 183,659 - - - - - - - - 183,659

Increase in equity

Acoperire pierdere - - - - - - - - - -

Loss coverage

Diferente capitalizate aferente impozitului amanat - - - - - - - (443,330) - (443,330)

Capitalised differences related to deffered tax

Alte elemente de capitaluri propri (beneficii angajati) 2,528,601 252,860 - - - - - (2,781,461) - -

Other comprehensive income (employee benefits)

Rezerva din reevaluare - - (1,139,240) 3,762,404 - - 1,159,864 - - 3,783,028

Revaluation reserve

Constituire rezerva legala - - - - 1,910,526 - (1,910,526) - - -

Legal Reserve

Alte reserve - - - - - 11,408,166 (11,408,166) - - -

Other reserve

31-Dec-19 59,779,703 253,004 - 16,578,139 5,263,590 20,966,082 64,538,959 (1,314,817) - 166,064,660

Rezultatul global curent - - - - - - 10,560,458 - - 10,560,458


Rezerve legale - - - - 574,885 - (574,885) - - -

Legal Reserve

31-Mar-20 59,779,703 253,004 - 16,578,139 5,838,475 20,966,082 74,524,531 (1,314,817)

-

176,625,118

CEMACON SA

Note la Situatiile Financiare Individuale (Notes to the standalone financial statements)


9

1. Legal principals

The interim individual financial statements as at 31 March 2020 have been prepared in accordance with IAS

34 Interim Financial Reporting.

The interim condensed individual financial statements as at 31 March 2020 included in this report are

unaudited and an external limited review by an auditor was not performed.

The interim condensed individual financial statements do not include all the information and disclosures

required in the annual financial statemets, and should be read in conjunction with the annual individual

financial statements as of December 31, 2019.

Selected explanatory notes are included to explain events and transactions that are significant to an

understanding of the changes in the fianancial position and performance of the company since the last annual

individual financial statements as at 31 December 2019.

2. Accounting policies

The accounting policies of the company are aligned with the international financial reporting standards

(IFRS). A detail of them can be found in the individual financial statements at 31 December 2019.

3. Accounting estimates

The entity makes certain estimates and assumptions concerning the future. Estimates and judgements are

assessed continuously on the basis of the experience historical and other factors, including expectations

regarding future events deemed to be reasonable in the circumstances. In the future, actual experience may

differ from these estimates and assumptions.

4. Revenues

Sale revenues 31-Mar-20 31-Mar-19

Sales of finished goods 28,690,325 31,725,469

Sales of goods 2,306,884 2,105,958

Revenues from services rendered 154,767 84,564

Discounts granted (1,521,978) (2,065,009)

Total 29,629,998 31,850,981

The main revenues realized by the entity in 2020 were from the sale of finished products 28.69 million lei,

the sale of goods 2.30 million lei and services rendered 0.15 million lei, while the value of discounts granted

was 1.52 million lei.

5. Other operational revenues

Other operational revenues are generated from activities that are not part of the general subject of activity

of the entity, which is why they are presented differently from income from sales.

CEMACON SA



10

5. Other operational revenues (continued)

Other operational revenues 31-Mar-20 31-Mar-19

Revenues from various activities 2,043,632 1,679,290

Subsidies for operating activities 43,175 -

Revenues from subsidy to asset values 18,910 18,910

Revenues from indemnifications 2,239 527,562

Total 2,107,956 2,225,763

In Revenues from various activities category, the receipts related to the receipts on the date of compliance

of the greenhouse gas certificates amounting to 1.96 million lei, according to the accounting policy, as well

as other revenues in the amount of 0.083 million lei.

The revenues related to the operating subsidy in the amount of 0.43 million lei refers to the project for

optimizing energy consumption by installing a cogeneration plant within Cemacon, co-financed by the Large

Infrastructure Operational Program 2014-2020.

In 2010 the Company received a subsidy for investments in amount of 1.6 mil lei, and in 2020 the company

has recognized as income corresponding to these subsidies the amount of 0.018 mil lei. Income from

subsidies is recognized related to the depreciation of the corresponding fixes assets. The recognized subsidy

refers to the grant of 15% of the value of the credit received from EBRD sources, for the energy efficiency

project started in 2009 with the construction of the new brick factory in Recea.

Other gains and losses 31-Mar-20 31-Mar-19

Income from the sale of assets 33,689 322

Expenses from the sale of assets - -

Revenue from the cancellation of provisions 2,566,275 1,594,339

From setting-up provisions - -

Gains and losses Total 2,599,964 1,594,661

6. Operating expenses

Other operating expenses 31-Mar-20 31-Mar-19

Utilities 3,179,920 3,118,587

Repairs 619,797 369,431

Rent 19,295 199,846

Insurance 183,849 145,022

Personal training 2,849 12,256

Commissions 78,421 140,600

Advertising 182,475 692,094

Transport and logistics 4,345,284 3,442,367

Post and telecommunications 38,818 43,387

Other services provided by third parties 969,208 570,293

Taxes 641,304 527,243

Miscellaneous 271,974 180,098

Total 10,533,193 9,441,224

CEMACON SA



11

7. Personnel expenses

The structure and average number of employees is: 255.

Average number of employees 31-Mar-20 31-Mar-19

Administrative staff 71 67

Personnel in production 184 168

Total 255 235

8. Financial income and expenses

Financial Income 31-Mar-20 31-Mar-19

Income from interest 225,001 298,356

Other financial revenues - 611

Exchange rate differences in income 196,435 377,752

Total 421,435 676,720

Financial Expenses 31-Mar-20 31-Mar-19

Interest costs (633,802) (691,748)

Other financial expenses (89,527) -

Exchange rate differences (118,337) (27,026)

Total (841,666) (718,774)

Financial expenses consist mainly of the following categories: Interest expenses 0.63 million lei, Expenses

related to exchange rate differences related to 0.12 million lei and other financial expenses 0.09 million lei.

Financial income is represented by interest income of 0.23 million lei, income from exchange rate differences

of 0.19 million lei.

9. Inventory

Inventory 31-Mar-20 31-Dec-19

Raw materials and consumables 5,210,643 5,957,247

Packing 2,499,342 2,920,837

Adjustments (283,182) (283,182)

WIP 95,760 91,573

Adjustments - -

Billets and finished products 15,245,406 10,243,388

Adjustments (68,201) (68,201)

Merchandise 2,409,179 1,487,828

Adjustments (41,539) (41,539)

Total 25,067,408 20,307,951

CEMACON SA



12

9. Inventory (continued)

The cost of inventories recognized in the income statement has the following structure:

Raw materials and consumables 31-Mar-20 31-Mar-19

Raw materials 2,944,723 2,618,554

Auxiliary materials 1,104,541 964,206

Packing 905,451 180,463

Merchandise 840,939 1,159,529

Inventory items 42,177 48,600

Other consumables 22,972 26,066

Miscellaneous 1,151,401 809,806

Total 7,012,204 5,807,224

Inventory Adjustments

Where necessary, adjustments are made for inventory items, physically or morally exploited. The net realizable

value is estimated on the basis of the selling price less the sales costs.

10. Commercial receivables and other receivables

Commercial receivables and other receivables 31-Mar-20 31-Dec-19

Trade receivables 33,077,258 35,222,178

Adjustments for trade receivables (1,582,102) (1,582,102)

Intragroup receivables 18,351,931 18,192,950

Adjustments for intragroup receivables (5,476,471) (5,476,471)

Claims to associates / shareholders - -

Employees - -

Tax - -

Other receivables from the State Budget 357,847 355,407

Subsidies - 139,287

Debtors and other receivables 133,050 139,242

Adjustments for other receivables - -

Interest to cash 1,321,598 1,100,353

Total financial assets other than cash,

classified as loans and receivables 46,183,111 48,090,844

Advance paid 1,616,209 1,114,939

Total 47,799,320 49,205,783

CEMACON SA



13

11. Trade and other payables

Trade and other payables 31-Mar-20 31-Dec-19

Trade liabilities 8,870,019 8,938,738

Suppliers of fixed assets 164,517 518,090

Intra-group liabilities 167,407 125,542

Lease liabilities 99,516 234,106

Debt related to employees 824,772 911,448

Taxes and social contributions 1,397,903 460,240

Other tax liabilities 2,962,474 2,973,597

Other liabilities 40,734 2,781,823

Interest to pay 2,931 2,931

Total debt less loans classified as measured at amortized cost 14,530,273 16,946,516

Dividends - -

Advances 417,876 331,592

Revenue in advance 3,319,544 4,345,110

Total 18,267,692 21,623,217

12. Issued Capital

On the 31st of March 2020 the structure of issued capital was as follows:

Issued capital structure 31-Mar-20 31-Dec-19

Subscribed share capital 50,565,353 lei 50,565,353 lei

Elements assimilated to capital 9,214,349 lei 9,214,349 lei

Total issued capital 59,779,702 lei 59,779,702 lei

On the 31st of March 2020 the structure of subscribed share capital was as follows:

Structure of subscribed share capital 31-Mar-20 31-Dec-19

Number of authorized shares 505,653,533 pcs 505,653,533 pcs

Number of subscribed and paid-up shares 505,653,533 pcs 505,653,533 pcs

Number of subscribed and unpaid-up shares - -

Nominal value of a share 0.10 lei 0.10 lei

Subscribed share capital value 50,565,353 lei 50,565,353 lei

All shares of the company are common and have the same voting right.

The movements of the capital structure in 2020 are presented in the following table:

31-Mar-20 31-Dec-19

Number Amount Number Amount

Ordinary shares of RON 0.1 each 505,653,533 pcs 50,565,353 lei 478,530,935 pcs 47,853,094 lei

Reduction by entrainment of losses - - - -

Emissions during the year - - 27,122,598 pcs 2,712,259 lei

Purchase of own shares - - - -

TOTAL 505,653,533 pcs 50,565,353 lei 505,653,533 pcs 50,565,353 lei

CEMACON SA



14

12. Issued Capital (continued)

The shareholding structure on 31 December 2019 consists of:

Shareholder Shares Percent

S.C. DEDEMAN S.R.L. 370.819.888 73.3348%

PIF INDUSTRIAL 84.315.847 16.6746%

alti actionari / others 50.517.798 9.9906%

TOTAL 505.653.533 100.0000% Source: DEPOZITARUL CENTRAL Data: 12/31/2019

As a result of the transactions on the capital market in 2020, the shareholding structure on 16 April 2020 is

composed of:


S.C. DEDEMAN S.R.L. 370.819.888 73.3348%

PIF Industrial 84.315.847 16.6746%

Persoane fizice 39.604.486 7.8323%

Persoane juridice 10.913.312 2.1583%

TOTAL 505,653,533 100.0000% Source: DEPOZITARUL CENTRAL Data: 04/16/2020

13. Transactions with Affiliates

The company's affiliates in 2020 are:

▪ DEDEMAN SRL with registered office in Bacău, Str. Alexei Tolstoi, nr. 8, CUI: 2816464, Nr.Ord.Reg.Com.: J04/2621/1992 – significant shareholder;

▪ PIF INDUSTRIAL SRL with registered office in Bacău, Str. Alexei Tolstoi, nr. 8, CUI: 18227759, Nr.Ord.Reg.Com.: J04/2200/2005 – shareholder;

▪ DEDEMAN AUTOMOBILE SRL with registered office in Bacău, Str. Republicii, Nr. 185, CUI: 15934070, Nr.Ord.Com.: J04/ 1513/2003 - company from Dedeman group;

▪ PAVAL HOLDING SRL with registered office in Bacău, Str. Alexei Tolstoi, nr. 8, CUI: 39895050, Nr.Ord.Reg.Com.: J04/ 1405/2018 - company from Dedeman group;

▪ Cemacon Real Estate with registered office in Jud. Salaj, Mun. Zalau, Str. Fabricii, Nr.1, CUI: 32604048; 100% investee of the company Cemacon SA; the group consisting of Cemacon SA and Cemacon Real Estate respectively, prepares consolidated financial statements as at 31 March 2020;

▪ Liviu-Ionel Stoleru – General Manager and President of Board of Directors

▪ Sologon Daniel – Financial Director

▪ Ana-Barbara Bobirca – member of the Board of Directors

▪ Dana-Rodica Beju – member of the Board of Directors

▪ Dragos Paval – member of the Board of Directors

▪ Marian Adam – member of the Board of Directors

CEMACON SA



15

13. Transactions with Affiliates (continued)

Transactions with affiliated parties are summarized in the following table:

Sales Acquisitions

Affiliates 1 Jan – 31 Mar 2020 1 Jan – 31 Mar 2019 1 Jan – 31 Mar 2020 1 Jan – 31 Mar 2019

Dedeman SRL 3,682,478 5,157,221 177,208 61,665

Cemacon Real Estate 2,307 - 111,747 137,883

Total 3,684,785 5,157,221 288,955 199,548

Amounts expressed in Lei

Balances with affiliated parties are summarized in the following table:

Receivables from affiliated parties Debts to affiliated parties Given loans

Affiliates 31-Mar-2020 31-Dec-19 31-Mar-2020 31-Dec-19 31-Mar-2020 31-Dec-19

Dedeman SRL 184,578 - 129,980 51,479 - -

Cemacon Real Estate 1,782,532 1,780,224 37,427 74,063 17,890,997 17,513,079

Total 1,967,110 1,780,224 167,407 125,542 17,890,997 17,513,079


CEMACON SA



16

14. Cash and cash equivalents

Cash and cash equivalents 31-Mar-20 31-Dec-19

Available in the bank 17,320,203 17,645,690

Cash and cash equivalents 20,726 17,381

Total 17,340,929 17,663,070

On March 31, 2020 there are no financial instruments that generate exposure to credit risk. Cash balances

denominated in foreign currency at 31.03.2020 are not material.

15. Adjustments of accounting errors

During January-March 2020, the Company did not record corrections of accounting errors, related to the

previous years.

16. Other information

Segment Reporting:

The company has a single reporting segment, represented by the production and marketing of building bricks.

The nature of the products in the range of the Company is similar, as well as their production process. Also,

the nature of the economic and legislative environment to which the Company is subject is the same for all

the production and marketing activities undertaken by the Company.The company does not record

significant sales on the foreign market that would meet the reporting criteria of a distinct segment. The assets

held by the Company are fully located within Romania and are used to produce and market the products

mentioned above. Also, all liabilities, respectively the results recorded in the individual financial statements,

are exclusively related to the only segment of the Company's activity, represented by the production and

marketing of building bricks.

Information on Company Presentation:

Cemacon SA is a Romanian legal entity, incorporated as a joint stock company pursuant to the GD No.

1200/1991 with registered office in Cluj-Napoca, 178K Calea Turzii Street, Hexagon Offices, 1st Floor, county

of Cluj. The company's main object of activity is the “Manufacture of bricks, tiles and construction products, from baked clay”.

Conversion bases used to express in national currency assets and liabilities, income and expenses originally

denominated in a foreign currency:

Main exchange rates used to convert foreign currency denominated balances into lei at 31 December 2019

and 31 March 2020 are:

Exchange rate

Foreign currency Abbreviation

31-Mar-20 31-Dec-19

Dolar SUA USD 4.3983 4.2608

Euro EUR 4.8254 4.7793

CEMACON SA



17

16. Other information (continued)

Amendments:

Administrators do not have the right to subsequently amend the financial statements. The financial

statements together with the notes to the financial statements are authorized to be issued on May 15, 2020.

It is not possible for the financial statements to be amended after they have been issued.

The quarterly financial statements were not audited.

17. Contingencies

Taxation

The Company considers that it has paid in full and in full all taxes, penalties, penalties and penalties, insofar

as this is the case.All amounts due to the State for taxes have been paid or recorded at the balance sheet

date. The fiscal system in Romania is undergoing consolidation and harmonization with European legislation,

with different interpretations of the authorities in relation to tax legislation, which may give rise to additional

taxes, fees and penalties. If the state authorities discover violations of the legal provisions in Romania, they

may, as the case may be: confiscation of the amounts in question, imposition of additional tax obligations,

application of fines, application of late payments (applied to the actual payment amounts). Therefore, the

fiscal sanctions resulting from violations of the legal provisions may reach significant amounts to be paid to

the state.In Romania, the fiscal exercise remains open for verification for a period of 5 years.

Transfer price

In accordance with relevant tax legislation, the tax assessment of a transaction with affiliated parties is based

on the concept of market price for that transaction. Based on this concept, transfer pricing needs to be

adjusted to reflect market prices that would have been set between entities that do not have an affiliate

relationship and that act independently, based on "normal market conditions".

It is likely that transfer pricing checks will be carried out in the future by tax authorities to determine

whether those prices comply with the "normal market conditions" principle and that the taxpayer's taxable

base is not distorted.

Director General Director Financiar

Stoleru Liviu Sologon Daniel

The information contained in this document are provided under IFRS (International Financial Reporting Standards). The company has made every

effort to ensure the information presented is complete, accurate and free of material errors. Where necessary, both the company and management,

used the professional judgment in conjunction with interantional financial reporting standards to present information in a manner consistent with

the specific activity of the business. Interpretation of information presented in this document must be made in accordance with these standards. If

there are gaps nor interpretations different from the mentioned regulations the provisions set out in International Financial Reporting Standards

(IFRS) will apply. The unaudited financial information set forth above is preliminary and subject to adjustments and modifications. Adjustments and

modifications to the financial statements may be identified during the course of the audit work, which could result in significant differences from this

preliminary unaudited financial information.

This document was translated from Romanian to English using automated translating software, for information purposes only. Cemacon SA is not

responsible for any translation errors or misinterpretation of information contained in this document. Reporting language is Romanian and in case of

misinterpretation the Financial Statements issued in Romanian shall apply.

1

Cluj-Napoca

15th of May 2020

SC CEMACON SA

Cod Fiscal 677858

Cod Registrul Comertului J12/2466/2012

CONSOLIDATED FINANCIAL STATEMENTS UNAUDITED

FOR THE PERIOD ENDED 31 St March 2020

Prepared according to International Reporting Standards

2

Cuprins (Contents)

Situatia consolidata a pozitiei financiare (Consolidated statement of financial position) ........................ 3

Situatia consolidata a rezultatului global (Consolidated statement of comprehensive income) .............. 5

Situatia consolidata a fluxului de numerar (Consolidated statement of cash - flow) .............................. 6

Situatia consolidata a modificarilor de capital (Consolidated statement of changes in equity) ............... 8

1. Legal principals .......................................................................................................................................... 9

2. Accounting policies ................................................................................................................................... 9

3. Accounting estimates ................................................................................................................................ 9

4. Revenues ................................................................................................................................................... 9

5. Other operational revenues ...................................................................................................................... 9

6. Operating expenses ................................................................................................................................ 10

7. Personnel expenses ................................................................................................................................ 11

8. Financial income and expenses............................................................................................................... 11

9. Inventory ................................................................................................................................................. 11

10. Commercial receivables and other receivables .................................................................................... 12

11. Trade and other payables ..................................................................................................................... 13

12. Issued Capital ........................................................................................................................................ 13

13. Transactions with Affiliates ................................................................................................................... 14

14. Cash and cash equivalents .................................................................................................................... 16

15. Adjustments of accounting errors ........................................................................................................ 16

16. Other information ................................................................................................................................. 16

17. Contingencies ........................................................................................................................................ 17

CEMACON SA

Situatia consolidata a pozitiei financiare (Consolidated Statement of financial position)


3


LEI LEI

ACTIVE (ASSETS)

ACTIVE IMOBILIZATE NON-CURRENT ASSETS

Imobilizari corporale

144,309,165 144,632,737

Property, plant and equipment

Investitii imobiliare 8,442,499 8,442,499

Investment property

Imobilizari necorporale 5,744,881 4,955,192

Intangible

Drept de utilizare a activelor in leasing* 21,212,825 21,603,368

Right of use assets

Investitii in actiuni - -

Investments

Alte active imobilizate 1,646,841 1,649,196

Other non-current assets

181,356,211 181,282,992

ACTIVE CIRCULANTE

CURRENT ASSETS Stocuri 9 25,067,408 20,307,951

Inventories

Creante comerciale si similare 10 28,262,205 30,047,150

Trade and other receivables

Alte active financiare - -

Other financial assets

Numerar si echivalente numerar 14 17,405,470 17,724,260

Cash and cash equivalents

70,735,083 68,079,361

Active clasificate drept detinute în vederea vânzãrii - -

Assets classified as held for sale

TOTAL ACTIVE (TOTAL ASSETS) 252,091,294 249,362,352

DATORII (LIABILITIES)

DATORII CURENTE

CURRENT LIABILITIES Datorii comerciale si similare 11 18,410,589 21,679,228

Trade and other payables

Imprumuturi 7,823,481 7,823,481


Datorii din operatiuni de leasing* 567,799 555,171

Lease liabilities




Grants received

Datorii privind impozitul pe profit 1,926,893 989,652

Tax liability

Provizioane 6,525,389 9,091,664

Provisions

37,538,405 42,428,997

CEMACON SA

Situatia consolidata a pozitiei financiare (Consolidated Statement of financial position)


4


LEI LEI

DATORII PE TERMEN LUNG NON-CURRENT LIABILITIES Datorii comerciale si similare 11 - -

Non-current trade and other liabilities

Imprumuturi 25,997,401 27,941,650


Datorii din operatiuni de leasing* 6,134,855 6,210,264

Lease liabilities




Grants received

Impozit amanat - -

Deferred tax

Provizioane 2,233,892 2,233,892

Provisions

42,568,176 45,110,849

TOTAL DATORII (TOTAL LIABILITIES) 80,106,581 87,539,845

ACTIVE NETE (NET ASSETS)

171,984,713 161,822,507

CAPITAL SI REZERVE (EQUITY) Capital social 12 59,779,702 59,779,702

Issued capital

Beneficii acordate angajatilor in instrumente de capitaluri proprii - -

Benefits granted to employees in equity instruments

Impozit profit amanat (1,314,817) (1,314,817)

Deffered Tax

Actiuni proprii - -

Own Shares

Prime legate de emiterea de actiuni 253,004 253,004

Share premium

Rezerve din reevaluare aferente active destinate vanzarii - -

Amounts recognised in other comprehensive income and

accumulated in equity relating to non-current assets held for sale

Rezerve 54,768,600 54,193,716

Reserves

Rezultat reportat 58,498,223 48,910,902

Retained earnings

Interesele care nu controleaza - -

Non-controling interest

TOTAL CAPITALURI (TOTAL EQUITY)

171,984,713 161,822,507

CEMACON SA

Situatia consolidata a rezultatului global (Consolidated Statement of comprehensive income)


5

Notes 31-Mar-20 31-Mar-19

LEI LEI

Venituri din vanzari 4 29,629,998 31,850,981

Sales revenues

Alte venituri din exploatare 5

2,117,210 2,230,314

Other operating revenues Alte castiguri si pierderi 5 2,599,964 1,594,661

Other gains and losses Variatia stocurilor 5,822,927 2,875,671

Change in inventories of FG & WiP Materii prime si consumabile 9 (7,012,204) (5,807,224)

Raw material and consumables used Cheltuieli de personal (7,745,151) (6,262,062)

Personnel Expenses Cheltuieli cu amortizarea (2,882,861) (2,212,260)

Depreciation and amortisation expenses Alte cheltuieli din exploatare 6 (10,632,288) (9,465,424)

Other operating expenses

Profit / (Pierdere) din exploatare 11,897,595 14,804,658

Profit / (Loss) from operation Venituri financiare 8 34,553 421,379

Financial income Cheltuieli financiare 8 (832,701) (1,085,092)

Financial expenses

Rezultat Financiar (798,147) (663,713)

Financial Result

Profit / (Pierdere) inainte de impozitare 11,099,447 14,140,945

Profit before tax Cheltuieli cu impozite (937,241) (1,583,229)

Profit 10,162,206 12,557,716

Profit after tax

CEMACON SA

Situatia consolidata a fluxului de numerar (Consolidated Statement of cash flow)


6

31-Mar-20 31-Mar-19

LEI LEI

Fluxuri din activitati de exploatare

Cash flow from operating activities

Incasari de la clienti 36,508,323 31,576,344

Customer encashments Plati catre furnizori (20,078,413) (19,784,422)

Supplier payments Plati catre angajati (5,854,155) (4,589,365)

Payments to employees Plati impozite si taxe (4,052,841) (4,446,755)

Tax Payments Impozit pe profit platit - -

Income Tax Paid Incasari din asigurari - -

Inssurance encashments Plati de asigurari (163,614) (114,578)

Insurrance payments Dobanzi platite (487,010) (583,069)

Interest Paid Alte incasari 173,528 -

Other Encashmants Alte plati - -

Other Payments Plati ctr leasing pe termen scurt si active de val. mica (22,961) (55,962)

Payments for short term leasing contracts and low value assets

Trezoreria neta din activitati de exploatare 6,022,857 2,002,194

Cash from operating activities

Fluxuri de trezorerie din activitati de investitii Cash flow from investing activities

Plati pentru achizitionarea de actiuni - -

Payments for aquiring shares Plati pentru achizitionarea de imobilizari corporale (3,079,071) (1,987,437)

Payments for aquiring assets Incasari din vanzarea de imobilizari corporale 33,689 322

Encashments from sold assets Dobanzi incasate 3,756 42,977

Encashments from interest Credite catre parti afiliate - -

Loans to affiliated parties Incasari credite parti affiliate - -

Encashments from third parties

Dividende incasate - -

Encashments from dividends

Trezoreria neta din activitati de investitie (3,041,626) (1,944,138)

Cash from investing activities

CEMACON SA

Situatia consolidata a fluxului de numerar (Consolidated Statement of cash flow)


7

31-Mar-20 31-Mar-19

LEI LEI

Fluxuri de trezorerie din activitati de finantare Cash flow from financing activities Incasari din aport de capital - 110,320

Encashments from share capital increase Incasari din imprumuturi - -

Encashments from loans Plata datoriilor aferente leasing-ului financiar-capital (1,240,256) (363,777)

Payments for financial lease Plata datoriilor aferente leasing-ului financiar-dobanda (111,610) (107,971)

Payments for financial lease-interest

Rambursari credite (1,944,250) (1,666,500)

Dividends paid and bank interest paid Incasari garantie achizitionare actiuni - -

Encashments from share purchase

Plata garantie achizitionare actiuni - -

Payment for share purchase

Trezoreria neta din activitati de finantare (3,296,116) (2,027,928)

Cash from financing activities

Efectul diferentelor de curs (3,905) (9,913)

Effect of exchange rate changes

Crestere /scadere neta de numerar (318,790) (1,979,785)

Net increase/decrease in cash and cash equivalents

Numerar si echivalente de numerar la inceputul perioadei 17,724,260 19,523,400

Cash and cash equivalents at beginning of period

Numerar si echivalente de numerar la sfarsitul perioadei 17,405,470 17,543,615

Cash and cash equivalents at end of period

CEMACON SA

Situația consolidata a modificărilor de capital (Consolidated statement of changes in equity)


8

Capital

subscris si

ajustari

Prime de

emisiune

Rezerve din

reevaluare

aferente active

detinute spre

vanzare

Rezerve din

reevaluare

Rezerve

legale

Alte

rezerve

Rezultat

nedistribuit

Alte elemente

ale capitalurilor

proprii

Prima aplicare

a IAS29

Issued

capital and

adjustments

Share

Premium

Reevaluation

reserve for HFS

assets

Reevaluation

reserves

Legal

reserves

Other

reserves

Undistributed

result

Accumulated Other

comprehensive

income

1st application

of IAS 29 Total

31-Dec-18 57,067,443 144 5,355,495 13,350,044 3,353,104 9,557,916 35,559,189 1,909,975 - 126,153,311



Diferente capitalizate impozitului amanat - - - - - - - (443,330) - (443,330)

Capitalised differences related to deffered tax

Majorare capital social 183,659 - - - - - - - - 183,659

Increase in equity

Acoperire pierdere - - - - - - - - - -

Loss coverage

Alte elemente de capitaluri propri (beneficii angajati) 2,528,601 252,860 - - - - - (2,781,461) - -

Accumulated Other comprehensive income (employee

benefits)

Rezerva din reevaluare - - (5,355,495) 14,613,961 - - 1,386,271 - - 10,644,737

Reevaluation reserve

Constituire rezerva legala - - - - 1,910,526 - (1,910,526) - - -

Legal reserve

Alte rezerve - - - - - 11,408,166 (11,408,166) - - -

Other reserve

31-Dec-19 59,779,703 253,004 - 27,964,004 5,263,630 20,966,082 48,910,900 (1,314,816) - 161,822,507



Constituire rezerva legala - - - - 574,885 - (574,885) - - -

Legal reserve

31-Mar-20 59,779,703 253,004 - 27,964,004 5,838,515 20,966,082 58,498,221 (1,314,816) - 171,984,713

CEMACON SA

Note la Situatiile FInanciare Consolidate (Notes to the consolidated financial statements)


9

1. Legal principals

The interim consolidated financial statements as at 31 March 2020 have been prepared in accordance with

IAS 34 Interim Financial Reporting.

The interim condensed consolidated financial statements as at 31 March 2020 included in this report are

unaudited and an external limited review by an auditor was not performed.

The interim condensed consolidated financial statements do not include all the information and disclosures

required in the annual financial statemets, and should be read in conjunction with the annual consolidated

financial statements as of December 31, 2019.

Selected explanatory notes are included to explain events and transactions that are significant to an

understanding of the changes in the fianancial position and performance of the company since the last annual

consolidated financial statements as at 31 December 2019.

2. Accounting policies

The accounting policies of the Group are aligned with the international financial reporting standards (IFRS).

A detail of them can be found in the consolidated financial statements at 31 December 2019.

3. Accounting estimates

The Group makes certain estimates and assumptions concerning the future. Estimates and judgements are

assessed continuously on the basis of the experience historical and other factors, including expectations

regarding future events deemed to be reasonable in the circumstances. In the future, actual experience may

differ from these estimates and assumptions.

4. Revenues

Sale revenues 31-Mar-20 31-Mar-19

Sales of finished goods 28,690,325 31,725,469

Sales of goods 2,306,884 2,105,958

Revenues from services rendered 154,767 84,564

Discounts granted (1,521,978) (2,065,009)

Total 29,629,998 31,850,981

The main revenues realized by the Group in 2020 were from the sale of finished products 28.69 million lei,

the sale of goods 2.30 million lei and services rendered 0.15 million lei, while the value of discounts granted

was 1.52 million lei.

5. Other operational revenues

Other operational revenues are generated from activities that are not part of the general subject of activity

of the Group, which is why they are presented differently from income from sales.

CEMACON SA



10

5. Other operational revenues (continued)

Other operational revenues 31-Mar-20 31-Mar-19

Revenues from various activities 2,052,886 1,683,841

Subsidies for operating activities 43,175 -

Revenues from subsidy to asset values 18,910 18,910

Revenues from indemnifications 2,239 527,562

Total 2,117,210 2,230,314

In Revenues from various activities category, the receipts related to the receipts on the date of compliance

of the greenhouse gas certificates amounting to 1.96 million lei, according to the accounting policy, as well

as other revenues in the amount of 0.092 million lei.

The revenues related to the operating subsidy in the amount of 0.43 million lei refers to the project for

optimizing energy consumption by installing a cogeneration plant within Cemacon, co-financed by the Large

Infrastructure Operational Program 2014-2020.

In 2010 the Group received a subsidy for investments in amount of 1.6 mil lei, and in 2020 the Group has

recognized as income corresponding to these subsidies the amount of 0.018 mil lei. Income from subsidies is

recognized related to the depreciation of the corresponding fixes assets. The recognized subsidy refers to

the grant of 15% of the value of the credit received from EBRD sources, for the energy efficiency project

started in 2009 with the construction of the new brick factory in Recea.

Other gains and losses 31-Mar-20 31-Mar-19

Income from the sale of assets 33,689 322

Expenses from the sale of assets - -

Revenue from the cancellation of provisions 2,566,275 1,594,339

From setting-up provisions - -

Gains and losses Total 2,599,964 1,594,661

6. Operating expenses

Other operating expenses 31-Mar-20 31-Mar-19

Utilities 3,179,920 3,118,587

Repairs 626,106 369,431

Rent 19,295 83,978

Insurance 186,315 147,398

Personal training 2,849 12,256

Commissions 78,646 141,691

Advertising 182,475 692,094

Transport and logistics 4,345,284 3,442,367

Post and telecommunications 38,818 43,387

Other services provided by third parties 1,032,772 680,918

Taxes 667,833 553,219

Miscellaneous 271,974 180,098

Total 10,632,288 9,465,424

CEMACON SA



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7. Personnel expenses

The structure and average number of employees is: 257.

Average number of employees 31-Mar-20 31-Mar-19

Administrative staff 73 69

Personnel in production 184 168

Total 257 237

8. Financial income and expenses

Financial Income 31-Mar-20 31-Mar-19

Income from interest 3,756 42,977

Other financial revenues - 611

Exchange rate differences in income 30,798 377,790

Total 34,553 421,379

Financial Expenses 31-Mar-20 31-Mar-19

Interest costs (633,802) (1,058,065)

Other financial expenses (85,321) -

Exchange rate differences (113,579) (27,026)

Total (832,701) (1,085,091)

Financial expenses consist mainly of the following categories: Interest expenses 0.63 million lei, Expenses

related to exchange rate differences related to 0.11 million lei and other financial expenses 0.09 million lei.

Financial income is represented by interest income of 0.003 million lei, income from exchange rate

differences of 0.03 million lei.

9. Inventory

Inventory 31-Mar-20 31-Dec-19

Raw materials and consumables 5,210,643 5,957,247

Packing 2,499,342 2,920,837

Adjustments (283,182) (283,182)

WIP 95,760 91,573

Adjustments - -

Billets and finished products 15,245,406 10,243,388

Adjustments (68,201) (68,201)

Merchandise 2,409,179 1,487,828

Adjustments (41,539) (41,539)

Total 25,067,408 20,307,951

CEMACON SA



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9. Inventory (continued)

The cost of inventories recognized in the income statement has the following structure:

Raw materials and consumables 31-Mar-20 31-Mar-19

Raw materials 2,944,723 2,618,554

Auxiliary materials 1,104,541 964,206

Packing 905,451 180,463

Merchandise 840,939 1,159,529

Inventory items 42,177 48,600

Other consumables 22,972 26,066

Miscellaneous 1,151,401 809,806

Total 7,012,204 5,807,224

Inventory Adjustments

Where necessary, adjustments are made for inventory items, physically or morally exploited. The net realizable

value is estimated on the basis of the selling price less the sales costs.

10. Commercial receivables and other receivables

Commercial receivables and other receivables 31-Mar-20 31-Dec-19

Trade receivables 33,081,275 35,231,042

Adjustments for trade receivables (7,058,573) (7,058,573)

Intragroup receivables - -

Adjustments for intragroup receivables - -

Claims to associates / shareholders - -

Employees - -

Tax - -

Other receivables from the State Budget 490,243 481,213

Subsidies - 139,287

Debtors and other receivables 133,050 139,242

Adjustments for other receivables - -

Interest to cash - -

Total financial assets other than cash,

classified as loans and receivables 26,645,996 28,932,211

Advance paid 1,616,209 1,114,939

Total 28,262,204 30,047,150

CEMACON SA



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11. Trade and other payables

Trade and other payables 31-Mar-20 31-Dec-19

Trade liabilities 9,075,540 9,112,596

Suppliers of fixed assets 233,157 518,090

Intra-group liabilities - -

Lease liabilities 99,516 234,106

Debt related to employees 828,622 915,298

Taxes and social contributions 1,403,665 463,121

Other tax liabilities 2,989,004 2,973,597

Other liabilities 40,734 2,782,787

Interest to pay 2,931 2,931

Total debt less loans classified as measured at amortized cost 14,673,169 17,002,527

Dividends - -

Advances 417,876 331,592

Revenue in advance 3,319,544 4,345,110

Total 18,410,589 21,679,228

12. Issued Capital

On the 31st of March 2020 the structure of issued capital was as follows:

Issued capital structure 31-Mar-20 31-Dec-19

Subscribed share capital 50,565,353 lei 50,565,353 lei

Elements assimilated to capital 9,214,349 lei 9,214,349 lei

Total issued capital 59,779,702 lei 59,779,702 lei

On the 31st of March 2020 the structure of subscribed share capital was as follows:

Structure of subscribed share capital 31-Mar-20 31-Dec-19

Number of authorized shares 505,653,533 buc 505,653,533 buc

Number of subscribed and paid-up shares 505,653,533 buc 505,653,533 buc

Number of subscribed and unpaid-up shares - -

Nominal value of a share 0.10 lei 0.10 lei

All shares of the company are common and have the same voting right.

The movements of the capital structure in 2020 are presented in the following table:

31-Mar-20 31-Dec-19

Number Amount Number Amount

Ordinary shares of RON 0.1 each 505,653,533 pcs 50,565,353 lei 478,530,935 pcs 47,853,094 lei

Reduction by entrainment of losses - - - -

Emissions during the year - - 27,122,598 pcs 2,712,259 lei

Purchase of own shares - - - -

TOTAL 505,653,533 pcs 50,565,353 lei 505,653,533 pcs 50,565,353 lei

CEMACON SA



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12. Issued Capital (continued)

The shareholding structure on 31 December 2019 consists of:


S.C. DEDEMAN S.R.L. 370.819.888 73.3348%

PIF INDUSTRIAL 84.315.847 16.6746%

alti actionari / others 50.517.798 9.9906%

TOTAL 505.653.533 100.0000% Source: DEPOZITARUL CENTRAL Data: 12/31/2019

As a result of the transactions on the capital market in 2020, the shareholding structure on 16 April 2020 is

composed of:


S.C. DEDEMAN S.R.L. 370.819.888 73.3348%

PIF Industrial 84.315.847 16.6746%

Persoane fizice 39.604.486 7.8323%

Persoane juridice 10.913.312 2.1583%

TOTAL 505,653,533 100.0000% Source: DEPOZITARUL CENTRAL Data: 04/16/2020

13. Transactions with Affiliates

The company's affiliates in 2020 are:

▪ DEDEMAN SRL with registered office in Bacău, Str. Alexei Tolstoi, nr. 8, CUI: 2816464, Nr.Ord.Reg.Com.: J04/2621/1992 – significant shareholder;

▪ PIF INDUSTRIAL SRL with registered office in Bacău, Str. Alexei Tolstoi, nr. 8, CUI: 18227759, Nr.Ord.Reg.Com.: J04/2200/2005 – shareholder;

▪ DEDEMAN AUTOMOBILE SRL with registered office in Bacău, Str. Republicii, Nr. 185, CUI: 15934070, Nr.Ord.Com.: J04/ 1513/2003 - company from Dedeman group;

▪ PAVAL HOLDING SRL with registered office in Bacău, Str. Alexei Tolstoi, nr. 8, CUI: 39895050, Nr.Ord.Reg.Com.: J04/ 1405/2018 - company from Dedeman group;

▪ Cemacon Real Estate with registered office in Jud. Salaj, Mun. Zalau, Str. Fabricii, Nr.1, CUI: 32604048; 100% investee of the company Cemacon SA; the group consisting of Cemacon SA and Cemacon Real Estate respectively, prepares consolidated financial statements as at 31 March 2020;

▪ Liviu-Ionel Stoleru – General Manager and President of Board of Directors

▪ Sologon Daniel – Financial Director

▪ Ana-Barbara Bobirca – member of the Board of Directors

▪ Dana-Rodica Beju – member of the Board of Directors

▪ Dragos Paval – member of the Board of Directors

▪ Marian Adam – member of the Board of Directors

CEMACON SA



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13. Transactions with Affiliates (continued)

Transactions with affiliated parties are summarized in the following table:

Sales Acquisitions

Affiliates 1 Jan – 31 Mar 2020 1 Jan – 31 Mar 2019 1 Jan – 31 Mar 2020 1 Jan – 31 Mar 2019

Dedeman SRL 3,682,478 5,157,221 177,208 61,665

Total 3,682,478 5,157,221 177,208 61,665


Balances with affiliated parties are summarized in the following table:

Receivables from affiliated parties Debts to affiliated parties Given loans

Affiliates 31-Mar-2020 31-Dec-19 31-Mar-2020 31-Dec-19 31-Mar-2020 31-Dec-19

Dedeman SRL 184,578 - 129,980 51,479 - -

Total 184,578 - 129,980 51,479 - -


CEMACON SA



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14. Cash and cash equivalents

Cash and cash equivalents 31-Mar-20 31-Dec-19

Available in the bank 17,383,451 17,705,586

Cash and cash equivalents 22,019 18,673

Total 17,405,470 17,724,260

On March 31, 2020 there are no financial instruments that generate exposure to credit risk. Cash balances

denominated in foreign currency at 31.03.2020 are not material.

15. Adjustments of accounting errors

During January-March 2020, the Group did not record corrections of accounting errors, related to the

previous years.

16. Other information

Segment Reporting:

The Group has a single reporting segment, represented by the production and marketing of building bricks.

The nature of the products in the range of the Group is similar, as well as their production process. Also, the

nature of the economic and legislative environment to which the Group is subject is the same for all the

production and marketing activities undertaken by the Group.The Group does not record significant sales on

the foreign market that would meet the reporting criteria of a distinct segment. The assets held by the Group

are fully located within Romania and are used to produce and market the products mentioned above. Also,

all liabilities, respectively the results recorded in the individual financial statements, are exclusively related

to the only segment of the Group 's activity, represented by the production and marketing of building bricks.

Information on Company Presentation:

Cemacon SA is a Romanian legal entity, incorporated as a joint stock company pursuant to the GD No.

1200/1991 with registered office in Cluj-Napoca, 178K Calea Turzii Street, Hexagon Offices, 1st Floor, county

of Cluj. The company's main object of activity is the “Manufacture of bricks, tiles and construction products, from baked clay”.

Conversion bases used to express in national currency assets and liabilities, income and expenses originally

denominated in a foreign currency:

Main exchange rates used to convert foreign currency denominated balances into lei at 31 December 2019

and 31 March 2020 are:

Exchange rate

Foreign currency Abbreviation 31-Mar-20 31-Dec-19

Dolar SUA USD 4.3983 4.2608

Euro EUR 4.8254 4.7793

CEMACON SA



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16. Other information (continued)

Amendments:

Administrators do not have the right to subsequently amend the financial statements. The financial

statements together with the notes to the financial statements are authorized to be issued on May 15, 2020.

It is not possible for the financial statements to be amended after they have been issued.

The quarterly financial statements were not audited.

17. Contingencies

Taxation

The Group considers that it has paid in full and in full all taxes, penalties, penalties and penalties, insofar as

this is the case.All amounts due to the State for taxes have been paid or recorded at the balance sheet date.

The fiscal system in Romania is undergoing consolidation and harmonization with European legislation, with

different interpretations of the authorities in relation to tax legislation, which may give rise to additional

taxes, fees and penalties. If the state authorities discover violations of the legal provisions in Romania, they

may, as the case may be: confiscation of the amounts in question, imposition of additional tax obligations,

application of fines, application of late payments (applied to the actual payment amounts). Therefore, the

fiscal sanctions resulting from violations of the legal provisions may reach significant amounts to be paid to

the state.In Romania, the fiscal exercise remains open for verification for a period of 5 years.

Transfer price

In accordance with relevant tax legislation, the tax assessment of a transaction with affiliated parties is based

on the concept of market price for that transaction. Based on this concept, transfer pricing needs to be

adjusted to reflect market prices that would have been set between entities that do not have an affiliate

relationship and that act independently, based on "normal market conditions".

It is likely that transfer pricing checks will be carried out in the future by tax authorities to determine

whether those prices comply with the "normal market conditions" principle and that the taxpayer's taxable

base is not distorted.

Director General Director Financiar

Stoleru Liviu Sologon Daniel

The information contained in this document are provided under IFRS (International Financial Reporting Standards). The company has made every

effort to ensure the information presented is complete, accurate and free of material errors. Where necessary, both the company and management,

used the professional judgment in conjunction with interantional financial reporting standards to present information in a manner consistent with

the specific activity of the business. Interpretation of information presented in this document must be made in accordance with these standards. If

there are gaps nor interpretations different from the mentioned regulations the provisions set out in International Financial Reporting Standards

(IFRS) will apply. The unaudited financial information set forth above is preliminary and subject to adjustments and modifications. Adjustments and

modifications to the financial statements may be identified during the course of the audit work, which could result in significant differences from this

preliminary unaudited financial information.

This document was translated from Romanian to English using automated translating software, for information purposes only. Cemacon SA is not

responsible for any translation errors or misinterpretation of information contained in this document. Reporting language is Romanian and in case of

misinterpretation the Financial Statements issued in Romanian shall apply.

Documents

BSE Report 1st Quarter Results 2020 · Calea Turzii nr.178K, Etaj 1, Cluj-Napoca, România, PO: 400491 E-mail. [email protected] Web: Page 3 of 7 Profit and loss Account – 3 Month