Aforti S A : Complement to the separated Annual Report for 2021 of Aforti Holding S.A.

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STANDALONE ANNUAL FINANCIAL REPORT OF COMPANY

AFORTI HOLDING S.A.

for 2021

Warsaw, July 7, 2022

Table of Contents
LETTER OF THE PRESIDENT OF THE MANAGEMENT BOARD ...............................................................................	3
SELECTED FINANCIAL DATA OF THE AFORTI HOLDING FOR THE PERIOD FROM 01.01.2021 TO 31.12.2021 ....	6
1.	Introduction .........................................................................................................................................	7
2.	Selected financial data: balance sheet, profit and loss account, cash flow statement........................	7

3. Management Board's position and opinion of the Supervisory Board's on the opinion with

expressed reservations by the auditing firm ....................................................................................................	8
THE STANDALONE ANNUAL FINANCIAL REPORT...............................................................................................	11
1.	Introduction .......................................................................................................................................	13
2.	Balance sheet .....................................................................................................................................	21
3.	Profit and loss account.......................................................................................................................	25
4.	Statement of changes in equity ........................................................................................................	27
5.	Cash flows ..........................................................................................................................................	30
6.	Additional information and explanations ..........................................................................................	32
1.	INFORMATION ABOUT THE COMPANY ..............................................................................................	53
1.1.	GENERAL INFORMATION ON COMPANY ......................................................................................	53
1.2.	SCOPE OF ACTIVITY.......................................................................................................................	53
1.3.	SHARE CAPITAL .............................................................................................................................	54
1.4.	SHARES AND SHAREHOLDING STRUCTURE ..................................................................................	55
1.5.	COMPANY AUTHORITIES ..............................................................................................................	58
1.6.	BRANCHES (ESTABLISHMENTS) OWNED BY THE UNIT) ................................................................	59
1.7.	ENTITIES IN WHICH THE COMPANY HOLDS AN INTEREST ............................................................	59

2. INFORMATION ABOUT EVENTS SIGNIFICANTLY INFLUENCING THE ACTIVITY OF THE ENTITY, WHICH TOOK PLACE DURING THE FINANCIAL YEAR AND ALSO AFTER ITS COMPLETION UNTIL THE DATE OF APPROVAL

OF THE FINANCIAL STATEMENTS ........................................................................................................................

61

1. THE IMPACT OF THE SARS-CoV-2 CORONavirus EPIDEMIC AND THE COVID-19 INFECTION AND OUTBREAK OF WAR IN UKRAINE ON THE OPERATIONS AND FINANCIAL RESULTS OF THE COMPANY AND ITS GROUP 66
2. INFORMATION ON THE FORESEEABLE DEVELOPMENT OF THE AFORTI CAPITAL GROUP

UNDERTAKING ....................................................................................................................................................	67
5.	MAJOR ACHIEVEMENTS OF THE UNIT IN RESEARCH AND DEVELOPMENT........................................	67

6. THE CURRENT AND PROJECTED COMPANY FINANCIAL SITUATION OF THE AFORTI CAPITAL GROUP

UNDERTAKING ....................................................................................................................................................	67
7.	INFORMATION ON OWN SHARES ......................................................................................................	69
8.	INFORMATION ON FINANCIAL INSTRUMENTS REGARDING THE RISKS ASSOCIATED WITH THEM....	70
	8.1. RISK FACTORS ASSOCIATED WITH THE BUSINESS AND THE ENVIRONMENT IN WHICH THE COMPANY
	OPERATES .......................................................................................................................................................	70
	8.2 RISK FACTORS RELATED TO THE CAPITAL MARKET...................................................................................	74
9.	THE CAPITAL GROUP OBJECTIVES AND FINANCIAL RISK MANAGEMENT ..........................................	75

10. KEY FINANCIAL AND NON-FINANCIAL PERFORMANCE INDICATORS RELATED TO THE ENTITY'S

OPERATIONS .......................................................................................................................................................	76
CAPITAL GROUP STATEMENT OF NON-FINANCIAL INFORMATION ....................................................................	76
STATEMENT ON CORPORATE GOVERNANCE.....................................................................................................	78
THE DECLARATIONS OF MANAGEMENT BOARD ...............................................................................................	84

1. STATEMENT OF MANAGEMENT BOARD ON RELIABILITY OF PREPARATION OF SEPARATE FINANCIAL

STATEMENTS ..................................................................................................................................................	85
2.	DECLARATION OF THE MANAGEMENT BOARD ON THE APPOINTMENT OF THE AUDIT FIRM ..........	86

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LETTER OF THE PRESIDENT OF THE MANAGEMENT BOARD

Ladies and gentlemen,

As each year, I am pleased to introduce you to the content of the annual report of AFORTI Group. Year 2021 should be considered as the next stage of AFORTI's activity which went down in history. With a high degree of certainty, it was an exceptional year, both in terms of events which occurred as well as in terms of the results we obtained. I would like to answer telegraphically and summarize to you the past

months of our work.

First quarter of 2021 started with the successive work on the implementation of the AFORTI.BIZ project.

As an initial step, the subsidiary AFORTI PLC and a company which is a holder of an E-Money Institution (EMI) license have concluded a share purchase agreement. Soon after, in March 2021, AFORTI Exchange which is a currency exchange company was ranked among the 70 most innovative representatives of the Polish finance and technology sector. This quarter of business year 2021 was finished by achieving by Aforti Group a

record in the financial results and as a result, our sales revenues amounted to PLN 435 million!

The winning streak also continued in the 2nd quarter, at that time, net sales revenues amounted to over 510 million PLN! In this period, the AFORTI Collections company was ranked on the 4th place in the overall ranking "Debt Collection Market Leaders" prepared by Gazeta Finansowa.

However, the key event of the quarter was the next phase associated with international expansion. In April, AFORTI PLC acquired a 9.9% stake in an EU EMI licensed company, bringing us much closer to offering services to customers across the European Union.

Furthermore, we are pleased to see more success in third quarter where AFORTI Holding was among the largest Polish companies of 2021 out of 2,000 active companies and we ranked satisfactorily 313th position.

During this period, we also shared with you the Group's strategy for 2021-2023, and we make good on our promises. In August, we celebrated our 10th anniversary of being listed on the NewConnect market, an important date for us and another milestone on AFORTI's road to success. This quarter was crowned with another, increasingly higher, sales result of PLN 607 million.

Despite this, the most important events happened in the last 4th quarter, where AFORTI Collections obtained the CESSIO Laurel. The Company has achieved the second position in the category "Outsourcing - Serwis Wierzytelności".

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In October 2022, the AFORTI Holding's shares were listed on the Bucharest Stock Exchange. With this symbolic ringing of the stock exchange bell, we started the next chapter of our expansion into the countries of Central and Eastern Europe.

After the initial public offering the Bucharest Stock Exchange was quickly followed by launch of factoring activities for clients in Romania which allowed us on financing the first invoices. At the same time, AFORTI Exchange enjoyed further success, taking 2nd place in the online exchange category in the ranking of the 100 Largest Polish Payment Companies.

However, in my view the greatest success of 2021 should be certainly consider the event of activation of the EMI license, which entitles AFORTI Group to completely develop its activities internationally. We are currently following several audits of our companies, including in Cyprus, as well as meetings with Central Banks.

We've had quite an exceptional year behind us! I very much hope that in 2023 I will be able to share with you more very good news from AFORTI!

I encourage you to read the consolidated annual report 2021 and Company's separate annual report 2021.

At your disposal is also our Investor Relations Department, with which

in case of questions, you can contact us by e-mail sent to: [e-mail]

Sincerely,

________________

Klaudiusz Sytek,

President of the Management Board

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