Transilvania Broker de Asigurare S A : 2021 Preliminary financial results

PRELIMINARY REPORT1

on the financial results of Transilvania Broker de Asigurare S.A.

as of 31st of December 2021

TRANSILVANIA BROKER DE ASIGURARE S.A.

Issuer on the Main Regulated Market operated by

Bucharest Stock Exchange (Bursa de Valori București S.A.)

In accordance with the provisions of the Romanian Law 24/2017 and the FSA Regulation no. 5/2018 on issuers of financial instruments and market operations,

The Issuer TRANSILVANIA BROKER DE ASIGURARE S.A. presents to all interested parties the preliminary financial results for the end-of-year 2021

Report date: February 17, 2022

Issuer: TRANSILVANIA BROKER DE ASIGURARE S.A.

Headquarters: 13 Calea Moldovei, Bistrița

Phone: [phone], Fax: [phone]

Fiscal code: 19044296

Trade Registry no: J06/674/2006

Subscribed and paid share capital: 500.000 lei

The market on which the issued securities are traded: The regulated market, Main Segment, Standard

Category

11 This Report is a convenience translation of the Romanian version `Raport privind rezultatele financiare anuale preliminare aferente perioadei de raportare încheiate la 31 decembrie 2021` which is to be regarded as the official document.

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1. RETROSPECTIVE AND PERSPECTIVES

Along the 2021 year, Transilvania Broker de Asigurare S.A. ("Transilvania Broker", "the Company", "the Issuer") has confirmed momentum and steady trajectory in implementing the development plan - a well-articulated and integrated plan, strategy-oriented, yet versatile towards the dynamics and opportunities in the outer environment.

Transilvania Broker's 4th year celebration since admission to trading was accompanied by an all-time- high of 112.5 m. lei (22.5 m. euro), when the share market value hit three times the value at listing. Since 2017, the company has drawn a steady upward growth trend in result and performance indicators, leading to an operational income 84% higher in 2021 as compared to 2017, and a profit that doubled in the same period. The cumulated value of the gross dividend paid to Transilvania Broker shareholders in the 4 years on the stock market summed up to 13.9 m. lei (2.8 mil. euro)

The 50% increase of Transilvania Broker share quotation on the stock exchange for 2021 reflected the performance the company reported to the market. On 31.12.2021, the operational revenue increased by

27.7% as compared to 2020 (a record growth rate), while the profit raised by 29.2%.

This dynamic was supported by an increase of 41.4% of the volume of intermediated insurance premiums as against 2020, for a 16.7% average commission that was adjusted to the particular context of the insurance market in 2021, and by a net profit margin higher than the previous year, of 6.96%.

We are pleased to note that the revenue for 2021 exceeded by 15% the budgeted level, while the gross operational profit and net profit outpaced by 21% and, respectively, 17.3% the targeted figures as approved in the OGSM of 28the of April, 2020.

All indicators assessing the financial position, such as the current ratio, solvency rates and debt rates, indicate that the company seems not to be exposed to risk and mirror the positive dynamics for financial results, capital structure and financial equilibrium.

In 2021, Transilvania Broker has registered growth in insurance premium volumes for 85% of all insurance classes, the highest growth rates occurring in C3 class - life insurance and annuities related to investment funds (5.8 times), followed by A18 class - insurances for assistance to people in difficulty during travelling (+75,5%), A16 class - insurance for financial loss (+68%) and for credit (+66,4%). Car liability insurance (A10) contributed mostly to the increase of 174.6 m. lei of the volume of intermediated premiums, together with insurance for land vehicles (A3) and for calamities (A8).

The Company management reports the successful accomplishment of multiple projects in the realm of the marketing strategy on one hand, and for the goal of optimizing the distribution infrastructure, such as:

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• Online issuing platform - online sales platform for RCA policies, for natural persons and legal entities. The platform enables Transilvania Broker customers to conclude an insurance policy in just one minute using text recognition technologies and autocomplete the data required by the policy. Launched in the middle of the year, the platform had over 50,000 users, with over 8,000 calculations of offers and receipts of over 120,000 lei.
• Digital commission - Transilvania Broker assistants can sell remotely through the online issuing platform, benefiting of their own unique reference link and the possibility for online promotion, as well as offline through materials with the link in the form of QR code automatically generated in the TBK collaborator dashboard. Over 100 TBK employees receive a digital commission each week, which is equal to a percentage of the classic sales commission.
• "15 years with Transilvania Broker" - an exploratory and retrospective project for what Transilvania Broker has meant for all stakeholders along its 15-year-story. The project consisted of a series of interviews with TBK's "Success Stories", with back-office colleagues, founders and team managers, key investors in the Company, and insurers.

In 2021, the management has also initiated more projects scheduled to be completed in 2022, among which:

• Transilvania Broker Academy - the training platform that will provide employees with information and training materials, from basic courses to training on complex insurance products, live courses and conferences with specialists in complex insurance;
• Transilvania Broker virtual assistant - live-chat assistant providing assistance and advise to clients 24/7, calculating customized offers and scheduling 1-on-1 meetings with the company's specialists in complex insurance.
• Expansion of online sales for more types of insurance, such as compulsory and optional housing policies, roadside assistance policy, and travel insurance.
• Improving the quality of services through customer feedback and reviews. A strategic goal this year is to know better and deeper the ever-changinginsurance market by getting feedback and reviews via all sale channels. A thorough understanding of customer needs and expectations will allow us to determine the investment areas for increasing the quality of services and to achieve quality standardization for services offered in Transilvania Broker franchises.
• Enhancement of the investors relationship stays as an important ongoing objective for the management of Transilvania Broker, which considers that transparency, consistency and continuity of communication are key elements for connecting the market value of the company with its economic, financial and operational results. In this regard, we will continue to diversify communication channels and organize several events through which shareholders and investors will learn more of the activity, vision, culture, opportunities and challenges of Transilvania Broker, beyond results and financial reporting.

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With regards to corporate governance, in 2021, the process of supplementing the Board of Administrators by 2 members according to the EGSM resolution of 29.07.2021 has been completed. Starting 01.05.2021, Mr. Gabriel Login, founder and significant shareholder of Transilvania Broker, and Mr. Erik Barna, the CEO of Life Is Hard, traditional partner of the Company for business digitization solutions, joined the Board as Administrators.

The TBK share face value split operation approved in EGSM of 07th of September, 2021 was completed at the beginning of 2022. Therefore, starting on 16th of February, 2022, the Company's share capital of 500,000 lei is divided in 5,000,000 common shares with a face value of 0.1 lei each.

The previously mentioned EGSM has also voted for the addition to the company's economic activities portfolio of the "distribution of retirement products", with the aim of business diversification and organic growth. Moreover, the shareholders were in favour for a Stock Option Plan which would incentivize and reward the company's key personnel. Its implementation would be supported by a share redemption programme for the maximum 0.25% of the total number of shares and aggregated value of 125,000 at the most. These resolutions will contribute to both higher motivated human resources and higher liquidity for the TBK share on the stock market.

The management pursuit of social responsibility causes and projects has been intensified in 2021, with the business registering record financial results and performance. The sponsorship value for social and educational projects exceeded 300,000 lei, by 44% more than in 2020.

It is also worth noting that, for its shareholders, Transilvania Broker paid gross dividend of 1.72 lei/share, according to the OGSM 14/27.04.2021, by 0.2 lei/share (+13.2%) than the gross dividend in the previous year. The aggregated dividend value paid in 2021 was 80.7% of the net profit reported in 2020.

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