Med Life S A : Q1 2024 Results report

MED LIFE GROUP

FINANCIAL REPORT 1st QUARTER 2024

WHICH INCLUDES SIMPLIFIED CONSOLIDATED UNAUDITED FINANCIAL STATEMENTS

FOR THE PERIOD ENDED MARCH 31, 2024

PREPARED IN ACCORDANCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARDS AS ADOPTED BY

EUROPEAN UNION

Free translation from the original Romanian version.

Name of the issuing company: MED LIFE S.A.

Registered Office: Bucharest, 365 Calea Griviței, district 1, Romania

Fax no.: 0040 374 180 470

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

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

Subscribed and paid-in share capital: RON 132,870,492

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

CONTENTS:	PAGE:
CONSOLIDATED UNAUDITED STATEMENT OF FINANCIAL POSITION	2
CONSOLIDATED UNAUDITED STATEMENT OF COMPREHENSIVE INCOME	3
CONSOLIDATED UNAUDITED STATEMENT OF CASH FLOWS	4
CONSOLIDATED UNAUDITED STATEMENT OF CHANGES IN EQUITY	5 - 6
NOTES TO THE CONSOLIDATED UNAUDITED FINANCIAL STATEMENTS	7 - 21

Free translation from the original Romanian version.

MED LIFE GROUP

CONSOLIDATED UNAUDITED STATEMENT OF FINANCIAL POSITION

AS AT MARCH 31, 2024

(all amounts are expressed in RON, unless otherwise specified)

	March 31,		December 31,
	2024	2023
ASSETS
Non-current Assets
Goodwill	445,832,463	445,395,617
Intangible assets	119,347,652	118,906,011
Property, plant and equipment	1,125,925,635	1,101,015,115
Right-of-use asset	398,762,093	396,569,537
Other financial assets	42,759,217	40,942,540
Total Non-Current Assets	2,132,627,060		2,102,828,820
Current Assets
Inventories	113,256,209	109,657,497
Trade Receivables	290,238,012	261,664,410
Other assets	53,540,209	50,216,242
Cash and cash equivalents	142,577,229	100,271,093
Prepayments	14,853,021	11,699,369
Total Current Assets	614,464,680		533,508,611
TOTAL ASSETS	2,747,091,740		2,636,337,431
LIABILITIES & SHAREHOLDER'S EQUITY
Non-Current Liabilities
Lease liability	315,710,074	309,158,946
Other long term debt	46,939,222	47,775,013
Interest-bearing loans and borrowings	1,050,457,027	1,040,639,641
Deferred tax liability	44,897,775	44,897,775
Total Non-Current Liabilities	1,458,004,098		1,442,471,375
Current Liabilities
Trade and other payables	460,929,566	404,553,771
Overdraft	23,848,731	29,835,472
Current portion of lease liability	98,500,939	99,589,187
Current portion of interest-bearing loans and borrowings	100,279,776	82,297,342
Current tax liabilities	7,860,664	321,242
Provisions	11,116,544	11,116,544
Other liabilities	79,803,618	71,960,475
Total Current Liabilities	782,339,838		699,674,033
TOTAL LIABILITIES	2,240,343,936		2,142,145,408
SHAREHOLDER'S EQUITY
Share capital and Share premium	132,562,337	132,562,338
Treasury shares	(1,186,157)	(681,892)
Reserves	214,425,861	212,560,216
Retained earnings	83,421,198	70,850,636
Equity attributable to owners of the Group	429,223,239		415,291,298
Non-controlling interests	77,524,565		78,900,725
TOTAL EQUITY	506,747,804		494,192,023
TOTAL LIABILITIES AND EQUITY	2,747,091,740		2,636,337,431

Mihail Marcu,		Alina Irinoiu,
CEO		CFO

The accompanying notes are an integral part of the consolidated financial statements. | page 2

Free translation from the original Romanian version.

MED LIFE GROUP

CONSOLIDATED UNAUDITED STATEMENT OF COMPREHENSIVE INCOME

FOR THE PERIOD ENDED MARCH 31, 2024

(all amounts are expressed in RON, unless otherwise specified)

	Period ended March 31,
	2024	2023
Revenue from contracts with customers	646,621,900	529,453,478
Other operating income	1,789,203	3,316,888
Operating Income	648,411,103		532,770,366
Consumable materials and repair materials	(112,319,796)	(91,017,054)
Third party expenses	(185,849,073)	(147,723,764)
Salary and related expenses	(150,459,728)	(126,148,971)
Social contributions	(5,476,300)	(4,606,973)
Depreciation and amortization	(56,379,055)	(47,150,315)
Impairment losses and gains (including reversals of	(1,558,186)	(1,002,093)
impairment losses)
Commodities expenses	(57,659,250)	(56,109,225)
Other operating expenses	(36,940,673)	(31,428,479)
Operating expenses
(606,642,061)	(505,186,874)
Operating Profit
41,769,042		27,583,492
Finance cost	(24,765,529)	(15,222,700)
Interest income	843,973	-
Other financial income	26,803	-
Other financial expenses	1,189,568		126,520
Financial result	(22,705,185)	(15,096,179)
Result Before Taxes
19,063,857		12,487,313
Income tax expense	(5,958,819)	(4,062,738)
Net Result	13,105,038		8,424,575
Owners of the Group	14,462,201	7,292,171
Non-controlling interests	(1,357,163)	1,132,403
Other comprehensive income items that will not be
reclassified to profit or loss
TOTAL OTHER COMPREHENSIVE INCOME
-		-
Total other comprehensive income attributable to:
Owners of the Group	-	-
Non-controlling interests	-	-
TOTAL COMPREHENSIVE INCOME	13,105,038		8,424,575
Total comprehensive income attributable to:
Owners of the Group	14,462,201	7,292,171
Non-controlling interests	(1,357,163)	1,132,403

Mihail Marcu,		Alina Irinoiu,
CEO		CFO

The accompanying notes are an integral part of the consolidated financial statements. | page 3

Free translation from the original Romanian version.

MED LIFE GROUP

CONSOLIDATED UNAUDITED STATEMENT OF CASH FLOWS

FOR THE PERIOD ENDED MARCH 31, 2024

(all amounts are expressed in RON, unless otherwise specified)

	Period ended		Period ended
	March 31,		March 31,
	2024	2023
Net profit before taxes	19,063,857	12,487,313
Adjustments for
Depreciation and amortization	56,379,055	47,150,315
Provisions for liabilities and charges	-	30,653
Interest revenue	(843,973)	(995,332)
Interest expense	24,765,529	15,222,700
Allowance for expected credit losses and receivables written-off	1,558,186	1,002,093
Other non-monetary gains	-	(1,498,500)
Unrealized exchange loss	(1,163,036)	896,967
Other Income	(26,803)		-
Operating cash flow before working capital changes	99,732,815	74,296,208
Decrease / (increase) in accounts receivable	(34,855,889)	7,998,782
Decrease / (increase) in inventories	(3,598,037)	3,384,877
Decrease / (increase) in prepayments	(3,153,452)	(2,338,617)
Increase / (decrease) in accounts payable	53,359,097	(15,754,314)
Cash generated from working capital changes	11,751,719		(6,709,272)
Cash generated from operations	111,484,534		67,586,936
Income Tax Paid	(7,745,638)	(2,264,695)
Interest Paid	843,973	995,332
Interest received	1,580,602	-
Net cash from operating activities	106,163,471		66,317,573
Acquisition of subsidiaries, net of cash acquired	(240,670)	(72,914,537)
Purchase of intangible assets	(3,233,486)	(3,476,458)
Purchase of property, plant and equipment	(43,065,498)	(24,504,211)
Net cash used in investing activities	(46,539,654)		(100,895,206)
Proceeds from loans	12,681,396	112,441,819
Payment of loans	(7,883,440)	(29,728,489)
Payment of principal portion of lease liabilities	(21,466,372)	(18,498,821)
Dividends paid to NCI	(100,000)	-
Payments for purchase of treasury shares	(504,265)	(401,951)
Additional participation interest acquired	(45,000)	-
Net cash from financing activities	(17,317,681)		63,812,558
Net change in cash and cash equivalents	42,306,136	29,234,925
Cash and cash equivalents beginning of the period	100,271,093	89,068,154
Cash and cash equivalents end of the period	142,577,229		118,303,079

Mihail Marcu,		Alina Irinoiu,
CEO		CFO

The accompanying notes are an integral part of the consolidated financial statements. | page 4

Free translation from the original Romanian version.

MED LIFE GROUP

CONSOLIDATED UNAUDITED STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED MARCH 31, 2024

(all amounts are expressed in RON, unless otherwise specified)

Balance as at January 1, 2024

Profit of the period

Total comprehensive income

Recognition of other reserves for fiscal purposes (legal reserves)

Recognition of other reserves

Additional non-controlling interest arising as of result of business combinations

Subsequent acquisition of NCI Increase from own shares acquisition

Balance as at March 31, 2024

			Legal reserves and	Revaluation	Accumulated	Attributable to	Non-controlling
Share Capital	Treasury shares	Share premium	owners of the	Total Equity
other reserves	Reserve	Results	interests
			group
132,870,492	(681,892)	(308,155)	63,063,167	149,497,049	70,850,636	415,291,297	78,900,725	494,192,022
-	-	-	-	-	14,462,201	14,462,201	(1,357,163)	13,105,038
-	-	-	-	-	14,462,201	14,462,201	(1,357,163)	13,105,038
-	-	-	376,278	-	(376,278)	-	-	-
-	-	-	1,489,367	-	(1,489,367)	-	-	-
-	-	-	-	-	-	-	-	-
-	-	-	-	-	(25,994)	(25,994)	(18,997)	(44,991)
-	(504,265)	-	-	-	-	(504,265)	-	(504,265)
132,870,492	(1,186,157)	(308,155)	64,928,812	149,497,049	83,421,198	429,223,239	77,524,565	506,747,804

Mihail Marcu,		Alina Irinoiu,
CEO		CFO

The accompanying notes are an integral part of the consolidated financial statements. | page 5

Free translation from the original Romanian version.

MED LIFE GROUP

CONSOLIDATED UNAUDITED STATEMENT OF CHANGES IN EQUITY FOR THE (all amounts are expressed in RON, unless otherwise

PERIOD ENDED MARCH 31, 2024 specified)

Balance as at January 1, 2023

Profit of the year

Total comprehensive income

Recognition of other reserves for fiscal purposes (legal reserves)

Recognition of other reserves

Increase in share capital through incorporation of reserves

Additional non-controlling interest arising as of result of business combinations

Subsequent acquisition of NCI Distribution of dividends

Increase from own shares acquisition

Net release of own shares used for acquiring additional NCI

Increase in premiums due to difference between fair value and cost of own shares when the exchange was made

Balance as at December 31, 2023

			Legal reserves and	Revaluation	Accumulated	Attributable to	Non-controlling
Share Capital	Treasury shares	Share premium	owners of the	Total Equity
other reserves	Reserve	Results	interests
			group
33,217,623	(3,219,219)	50,594,933	55,094,194	149,497,049	131,596,255	416,780,835	65,257,412	482,038,247
-	-	-	-	-	3,684,292	3,684,292	(7,849,149)	(4,164,857)
-	-	-	-	-	3,684,292	3,684,292	(7,849,149)	(4,164,857)
-	-	-	821,321	-	(821,321)	-	-	-
-	-	-	7,147,652	-	(7,147,652)	-	-	-
99,652,869	-	(50,594,933)	-	-	(49,057,937)	-	-	-
-	-	-	-	-	-	-	27,511,565	27,511,565
-	-	-	-	-	(7,403,001)	(7,403,001)	(4,118,682)	(11,521,683)
-	-	-	-	-	-	-	(1,900,421)	(1,900,421)
-	(488,718)	-	-	-	-	(488,718)	-	(488,718)
-	3,026,045	-	-	-	-	3,026,045	-	3,026,045
-	-	(308,155)	-	-	-	(308,155)	-	(308,155)
132,870,492	(681,892)	(308,155)	63,063,167	149,497,049	70,850,636	415,291,297	78,900,725	494,192,022

Mihail Marcu,		Alina Irinoiu,
CEO		CFO

The accompanying notes are an integral part of the consolidated financial statements. | page 6

Free translation from the original Romanian version.

MED LIFE GROUP

NOTES TO THE CONSOLIDATED UNAUDITED FINANCIAL STATEMENTS

FOR THE PERIOD ENDED MARCH 31, 2024 (all amounts are expressed in RON, unless otherwise specified)

1. DESCRIPTION OF THE BUSINESS

Med Life S.A. ("MedLife" or the "Parent Company" or the "Company") is a joint-stock company incorporated in 1996, in accordance with the laws and regulations of Romania, with its headquarters in Bucharest, 365 Calea Grivitei, with a share capital of RON 132,870,492, with a nominal share value of 0.25 RON.

The Company's activity resides in the performance of healthcare services activities through medical centres with national coverage.

MedLife, together with its subsidiaries ("MedLife Group" or the "Group"), is offering a large range of medical service, with a network of 35 hyperclinics, 68 clinics, 15 hospitals - located in Bucharest, Arad, Sibiu, Brasov, Cluj, Ploiesti and Pitesti, 39 laboratories, 21 pharmacies and 18 dental clinics. The Group has also more than 170 private clinic partners around Romania.

Medlife Group is the leading private health care services provider in Romania in terms of sales, having a significant market

share at a national level.

The ultimate parent of the Group is Med Life SA. In accordance with the provisions of the Law no. 129/2019, the Group has identified the following controlling parties:

The Marcu family:

1. Mr. Mihail Marcu, considering his quality of shareholder of the Company, which holds a percentage of 14.7672% of its share capital;
2. Mr. Nicolae Marcu, considering his quality of shareholder of the Company, which holds a percentage of 10.4127% of its share capital;
3. Mrs. Mihaela Gabriela Cristescu, considering her quality of shareholder of the Company, which holds a percentage of 14.0443% of its share capital.

Considering the family relations between the persons mentioned above, namely the fact that Mr. Mihail Marcu and Mr. Nicolae Marcu are the sons of Mrs. Mihaela Gabriela Cristescu, and the fact that together they own more than 25% of the total share capital of the company, for to pursue the purpose of the law, even if the law refers to the natural person, this expression of the law does not exclude the hypothesis of natural persons acting together, to the extent that it is established that they control the company together and are the final beneficiaries of its activity.

List of the entities part of Med Life Group as at March 31, 2024 and December 31, 2023 are as follows (ownership percentage):

The accompanying notes are an integral part of the consolidated financial statements. | page 7

Free translation from the original Romanian version.

MED LIFE GROUP

NOTES TO THE CONSOLIDATED UNAUDITED FINANCIAL STATEMENTS

FOR THE PERIOD ENDED MARCH 31, 2024 (all amounts are expressed in RON, unless otherwise specified)

No.	Entity	Main activity
1	Policlinica de Diagnostic Rapid	Medical Services
SA
2	Medapt SRL (indirect)*	Medical Services
3	Histo SRL (indirect)*	Medical Services
4	Policlinica de Diagnostic Rapid	Medical Services
Medis SRL (indirect)*
	Development of building
5	Bahtco Invest SRL**
projects
6	Med Life Ocupational SRL	Medical Services
7	Pharmalife-Med SRL	Distribution of Pharmaceutical
Products in specialised stores

8 Med Life Broker de Asigurare si Insurance broker Reasigurare SRL

Location	31 March 2024 31 December 2023
Brasov, Romania	83%	83%
Brasov, Romania	83%	83%
Brasov, Romania	50%	50%
Sfantu Gheorghe,	66%	66%
Romania
Bucuresti, Romania	100%	100%
Bucuresti, Romania	100%	100%
Bucuresti, Romania	100%	100%
Bucuresti, Romania	99%	99%
	merged under

1. Accipiens SA
2. Genesys Medical Clinic SRL (indirect)*
3. Bactro SRL (indirect)*
4. Transilvania Imagistica SA (indirect)*

Rental activities

Medical Services

Medical Services

Medical Services

Arad, Romania	Genesys Medical	83%
	Clinic SRL
Arad, Romania	83%	83%
	merged under
Deva, Romania	Genesys Medical	83%
	Clinic SRL
	merged under
Oradea, Romania	Genesys Medical	83%
	Clinic SRL
	merged under

13 Biofarm Farmec SRL (indirect)* Distribution of Pharmaceutical Products in specialised stores

14	RUR Medical SRL (indirect)**	Medical Services
15	Biotest Med SRL	Medical Services
16	Vital Test SRL	Medical Services
17	Centrul Medical Sama SA	Medical Services
18	Ultratest SA (direct si	Medical Services
indirect)*
19	Diamed Center SRL	Medical Services
20	Prima Medical SRL	Medical Services
21	Stem Cells Bank SA	Medical Services
22	Dent Estet Clinic SA	Dental healthcare
23	Green Dental Clinic SRL	Dental healthcare
(indirect)*
24	Dentist 4 Kids SRL (indirect)*	Dental healthcare
25	Dent A Porter SRL (indirect)*	Dental healthcare
26	Dentestet Kids SRL (indirect)*	Dental healthcare

Arad, Romania	Pharmalife-Med	100%
	SRL
Brasov, Romania	83%	83%
Bucuresti, Romania	100%	100%
Iasi, Romania	100%	100%
Craiova, Romania	90%	90%
Craiova, Romania	92%	92%
	merged under
Bucuresti, Romania	Anima Specialty	100%
Medical Services
	SRL
Craiova, Romania	100%	100%
Timisoara, Romania	100%	100%
Bucuresti, Romania	65%	65%
Bucuresti, Romania	33%	33%
Bucuresti, Romania	65%	65%
Bucuresti, Romania	34%	34%
Bucuresti, Romania	34%	34%

1. Aspen Laborator Dentar SRL (indirect)*
2. Centrul Medical Panduri SA
3. Almina Trading SA
4. Anima Specialty Medical Services SRL
5. Anima Promovare si Vanzari SRL (indirect)*
6. Valdi Medica SA
7. Clinica Polisano SRL
8. Solomed Clinic SA
9. Solomed Plus SRL (indirect)*

Dental healthcare

Medical Services

Medical Services

Medical Services

Medical Services

Medical Services

Medical Services

Medical Services

Medical Services

Bucuresti, Romania	49%	49%
Bucuresti, Romania	100%	100%
Targoviste, Romania	90%	90%
Bucuresti, Romania	100%	100%
Bucuresti, Romania	100%	100%
Cluj, Romania	55%	55%
Sibiu, Romania	100%	100%
Pitesti, Romania	80%	80%
Pitesti, Romania	80%	80%

The accompanying notes are an integral part of the consolidated financial statements. | page 8

Free translation from the original Romanian version.

MED LIFE GROUP

NOTES TO THE CONSOLIDATED UNAUDITED FINANCIAL STATEMENTS

FOR THE PERIOD ENDED MARCH 31, 2024 (all amounts are expressed in RON, unless otherwise specified)

No.	Entity	Main activity
36	Ghencea Medical Center SA	Medical Services
37	Sfatul medicului SRL	Medical Platform
38	RMC Dentart (indirect)*	Dental healthcare
39	RMC Medical (indirect)*	Medical Services
40	RMC Medlife	Holding
41	Badea Medical SRL	Medical Services
42	Oncoteam Diagnostic SRL**	Medical Services
43	Centrul medical Micromedica	Medical Services
SRL

44 Micromedica Targu Neamt SRL Medical Services (indirect)*

45	Micromedica Bacau SRL	Medical Services
(indirect)*
46	Micromedica Roman SRL	Medical Services
(indirect)*
47	Medrix Center SRL (indirect)*	Medical Services
48	Spitalul Lotus SRL	Medical Services
49	Labor Maricor SRL (indirect)*	Medical Services
50	Centrul Medical Matei Basarab	Medical Services
SRL (indirect)*

Location

Bucuresti, Romania

Bucuresti, Romania

Budapesta, Ungaria

Budapesta, Ungaria

Budapesta, Ungaria

Cluj, Romania

Bucuresti, Romania

Piatra Neamt,

Romania

Targu Neamt,

Romania

Bacau, Romania

Roman, Romania

Roznov, Romania Ploiesti, Romania

Bacau, Romania

Bucuresti, Romania

31 March 2024 31 December 2023

merged under
Anima Specialty	100%
Medical Services
SRL
100%	100%
88%	88%
88%	88%
88%	88%
65%	65%
100%	100%
100%	100%
100%	100%
100%	100%
100%	100%
100%	100%
100%	100%
merged under
Anima Specialty	100%
Medical Services
SRL
merged under
Anima Specialty	100%
Medical Services
SRL

1. Pharmachem Distributie SRL
2. CED Pharma SRL (indirect)*
3. Leti Pharm 2000 SRL (indirect)*
4. Monix Pharm SRL (indirect)*
5. KronDent SRL (indirect)*
6. Medica SA
7. Dent Estet Ploiesti SRL (indirect)*
8. The Lab Stomestet SRL (indirect)*
9. Stomestet SRL (indirect)*

Distribution of Pharmaceutical Products in specialised stores

Distribution of Pharmaceutical Products in specialised stores

Distribution of Pharmaceutical Products in specialised stores

Distribution of Pharmaceutical Products in specialised stores

Dental healthcare

Medical Services

Dental healthcare

Dental healthcare

Dental healthcare

Bucuresti, Romania

Bucuresti, Romania

Bucuresti, Romania

Bucuresti, Romania

Brasov, Romania Sibiu, Romania

Ploiesti, Romania

Cluj, Romania

Cluj, Romania

75%	75%
merged under
Pharmalife-Med	100%
SRL
merged under
Pharmalife-Med	100%
SRL
merged under
Pharmalife-Med	100%
SRL
39%	39%
60%	60%
33%	33%
39%	39%
39%	39%

60	Stomestet Plus SRL (indirect)*	Dental healthcare
61	Costea Digital Dental SRL	Dental healthcare
(indirect)*
62	Expert Med Centrul Medical	Medical Services
Irina (indirect)*
63	MNT Healthcare Europe SRL	Medical Services
64	MNT Asset Management SRL	Holding
(indirect)*
65	Clinica Life-Med SRL (indirect)*	Medical Services

Cluj, Romania

Oradea, Romania

Galati, Romania

Ilfov, Romania

Bucuresti, Romania

Bucuresti, Romania

39%	39%
38%	38%
76%	76%
50%	50%
50%	50%
merged under

Anima Specialty	100%
Medical Services
SRL

66	Pro Life Clinics SRL (indirect)*	Medical Services
67	Onco Card SRL (indirect)*	Medical Services
68	Onco Card Invest SRL	Holding
(indirect)*
69	Tomorad Expert SRL	Medical Services
(indirect)*
70	IT Repair SRL (indirect)*	Medical Services

Iasi, Romania	60%	60%
Brasov, Romania	83%	83%
Brasov, Romania	83%	83%
Sfantu Gheorghe,	66%	66%
Romania
Targu Mures,	50%	50%
Romania

The accompanying notes are an integral part of the consolidated financial statements. | page 9

Free translation from the original Romanian version.