HALF YEARLY REPORT OF
LION CAPITAL
JANUARY 1st - JUNE 30th, 2023
prepared pursuant to Law no. 24/2017, Law no. 74/2015, Law no. 243/2019,
ASF Regulation no. 10/2015, ASF Regulation no. 5/2018, ASF Regulation no. 7/2020, and ASF Norm no. 39/2015
this report is provided as a free translation from Romanian, which is the official and binding version
LION CAPITAL S.A. | HALF-YEARLY REPORT as of June 30, 2023
CONTENTS
GENERAL INFORMATION | 3 |
MAIN FINANCIAL AND OPERATIONAL INFORMATION | 4 |
1. ANALYSIS OF LION CAPITAL'S ACTIVITY | 5 |
Economic Context | 5 |
Analysis of the Portfolio Under Management | 8 |
The Progress of Net Asset Value | 9 |
Portfolio Structure | 11 |
Stock Portfolio Management | 14 |
Risk Management | 20 |
Other Significant Information | 25 |
2. THE SHARES ISSUED BY LION CAPITAL | 28 |
3. CORPORATE GOVERNANCE | 32 |
4. FINANCIAL RESULTS AS OF JUNE 30, 2023 | 42 |
5. EVENTS AFTER THE REPORTING PERIOD | 46 |
6. ANNEXES |
Annex 1 Condensed interim separate financial statements as of June 30, 2023, prepared pursuant to the Financial Supervisory Authority Norm no. 39/2015 for the approval of accounting regulations in accordance with the International Financial Reporting Standards applicable to entities authorised, regulated, and supervised by the Financial Supervisory Authority, operating in the Financial Instruments and Investments Sector - unaudited
Annex 2 Net asset statement as of June 30, 2023, prepared pursuant to
Annex 10 of Regulation no. 7/2020
Annex 3 Detailed statement of investments as of June 30, 2023, pursuant to Annex 11 of Regulation no. 7/2020
Annex 4 Statement of the responsible persons
Annex 5 Changes in the Articles of Association
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LION CAPITAL S.A. | HALF-YEARLY REPORT as of June 30, 2023
GENERAL INFORMATION
CORPORATE NAME
COMPANY TYPE
Lion Capital S.A. (hereinafter referred to as "Lion Capital", "the Fund" or "the Company") the new corporate name starting March 24, 2023, of
SIF Banat-Crișana S.A.
- joint stock company, Romanian legal entity with entire private capital
- established as a self-managed investment company, authorized by the Financial Supervisory Authority as Alternative Investment Fund Manager (AIFM) - Authorization no. 78 / 09.03.2018, and as closed- ended alternative investment fund, diversified, addressed to retail investors (AIFRI) - Authorization no. 130 / 01.07.2021
SHARE CAPITAL | ▪ RON 50,751,005.60 - subscribed and paid-up capital | |
▪ 507,510,056 shares issued; 506,520,056 outstanding as of 30.06.2023 | ||
▪ RON 0.10 per share nominal value | ||
REGISTRATIONS | ▪ Number in Trade Register J02/1898/1992 | |
▪ Tax Identification Code RO 2761040 | ||
▪ Number in ASF AFIAA Register PJR07.1AFIAA / 020007 / 09.03.2018 | ||
▪ Number in ASF FIAIR Register PJR09FIAIR / 020004 / 01.07.2021 | ||
▪ Legal Entity Identifier (LEI) 254900GAQ2XT8DPA7274 | ||
MAIN ACTIVITY | Main activity is, as per the classification of economic activities in the | |
national economy (CAEN): financial intermediation, except for insurance | ||
and pension funds (CAEN code 64), and the main object of activity: Other | ||
financial intermediation n.c.a. (CAEN code 6499): | ||
▪ | portfolio management | |
▪ | risk management | |
▪ other activities carried out within the collective management of an | ||
investment fund, allowed by the legislation in force | ||
TRADING MARKET | The company is listed since November 1, 1999, on the regulated market | |
of Bucharest Stock Exchange (BVB) - Premium category | ||
Symbol LION (starting May 15, 2023; prior: SIF1) | ||
FINANCIAL AUDITOR | Deloitte Audit S.R.L. | |
DEPOSITARY BANK | Banca Comercială Română (BCR) | |
SHARES AND | ||
SHAREHOLDERS' REGISTRY | Depozitarul Central S.A. Bucharest | |
HEADQUARTERS | Arad, 35A Calea Victoriei 310158, Romania | |
TEL +40257 304 438 FAX +40257 250 165 | ||
EMAIL office@lion-capital.ro WEB www.lion-capital.ro | ||
BRANCH OFFICE | Lion Capital Arad-BucharestBranch-Rahmaninov | |
46-48 S. V. Rahmaninov Str., 3rd floor, sector 2, 020199, Bucharest |
CONTACT Investor Relations: email investitori@lion-capital.rotel +40257 304 446
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LION CAPITAL S.A. | HALF-YEARLY REPORT as of June 30, 2023
MAIN FINANCIAL AND OPERATIONAL INFORMATION
MAIN BALANCE SHEET ITEMS [RONm]
30.06.2022 | 31.12.2022 | 30.06.2023 | |
Total assets, of which | 3,364.05 | 3,405.26 | 3,605.15 |
Total financial assets | 3,335.99 | 3,374.95 | 3,583.03 |
Equity (own capital) | 3,164.20 | 3,242.85 | 3,445.34 |
Total liabilities | 199.85 | 162.41 | 159.81 |
FINANCIAL PERFORMANCE [RONm]
30.06.2022 | 31.12.2022 | 30.06.2023 | |
Operating income | 130.38 | 174.92 | 63.34 |
Gain/(Loss) on investment | (99.30) | (47.40) | 70.95 |
Operating expenses | 9.62 | 24.39 | 10.57 |
Gross profit / (Loss) | 21.46 | 103.12 | 123.72 |
Net profit / (Loss) | 12.38 | 95.47 | 118.29 |
FINANCIAL RATIOS [%]
30.06.2022 | 31.12.2022 | 30.06.2023 | |
ROE (Net Profit / Equity) | 0.39 | 2.94 | 3.43 |
ROA (Net Profit / Total Assets) | 0.37 | 2.80 | 3.28 |
Gross profit margin (gross profit / total revenues) | 10.7 | 27.43 | 60.75 |
PERFORMANCE OF SHARES AND NET ASSET
30.06.2022 | 31.12.2022 | 30.06.2023 | |
Share price (end of period, RON) | 2.4500 | 2.4300 | 2.3500 |
NAV/S* (RON) | 6.2238 | 6.3817 | 6.8227 |
Accounting net asset / share (RON) | 6.2348 | 6.3897 | 6.8020 |
Nominal value of share (RON) | 0.1 | 0.1 | 0.1 |
Number of shares issued | 515,422,363 | 507,510,056 | 507,510,056 |
Number of outstanding shares | 507,510,056 | 507,510,056 | 506,520,056 |
* calculated acc. to ASF regulations |
OPERATIONAL DATA
30.06.2022 | 31.12.2022 | 30.06.2023 | |
Number of permanent employees | 30 | 32 | 31 |
Branch offices | 1 | 1 | 1 |
SHAREHOLDING STRUCTURE as of June 30, 2023
number of shareholders | holdings | |
Romanian individuals | 5,737,253 | 39.26% |
Non-resident individuals | 2,134 | 1.23% |
Romanian legal entities | 110 | 43.55% |
Lion Capital* | 1 | 0.19% |
Non-resident legal entities | 21 | 15.77% |
TOTAL | 5,739,519 | 100% |
* treasury shares, repurchased in 2023
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LION CAPITAL S.A. | HALF-YEARLY REPORT as of June 30, 2023
1. ANALYSIS OF LION CAPITAL'S ACTIVITY
Economic Context
Expectations regarding global macroeconomic developments indicate a slight improvement, however, the risks of a more pronounced economic slowdown remain significant, amidst the prolongation of the conflict in Ukraine, the persistence of inflation at a high level (though decreasing), and, notably, turbulence observed in the banking sectors of several countries.
According to the latest assessments, the IMF (WEO, April 2023) projects a global economic growth rate of 2.8% for the current year. This marks a decrease from 3.4% in 2022 and a revision down by 0.1 pp compared to the estimates made in January 2023.
European Economic Climate
In 1H 2023, uncertainty continued to dominate European markets due to the ongoing conflict between Ukraine and Russia. Europe's dependency on Russian oil and gas, coupled with energy supply difficulties, highlighted the EU's economic vulnerability. This impact struck both the Union's economy directly and indirectly, further pressuring the already-existing global inflationary trend.
Due to a mild winter with average temperatures exceeding previous years and a weakened European economy, industrial and residential energy demand and consumption slowed down. Prices also decreased from previous record levels in the energy and gas markets.
Forecasts from the European Commission in the fall of 2022 projected that the EU economy would contract in the last quarter of 2022 and the first quarter of 2023. However, the latest data indicate a contraction smaller than anticipated in the final quarter of the previous year and a positive evolution in 1Q.
The growth of the EU's GDP is expected to reach 1.0% in 2023 (up from an initial estimate of 0.8%) and 1.7% in 2024 (up from 1.6%), according to the European Commission's forecasts. Eurostat's revisions for the eurozone are of a similar magnitude, with GDP growth now estimated at 1.1% and 1.6% in 2023 and 2024, respectively.
Measures taken to combat inflationary effects are already discernible, but the reduction in the consumer price index is proceeding at a slower pace than initially expected. Decreases in energy prices, alleviated supply constraints, improved business confidence, and a strong labour market, combined with tightened monetary policies, have supported this positive outcome, even though the effects have been delayed over time. Regarding inflation, the overall index continued to decline in the first quarter of 2023, mainly due to the sharp deceleration in energy prices. However, core inflation has solidified, indicating persistent price pressures. According to Eurostat's latest estimates, inflation is expected to reach 5.8% in 2023 and 2.8% in 2024 in the eurozone, higher by 0.2% and 0.3% respectively compared to previous winter forecasts. Published predictions for the entire European Union indicate an inflation rate of 6.7% for 2023, and 3.1% for the year 2024.
Domestic Economic Climate
Data published by the National Institute of Statistics (according to preliminary estimates) indicates that Romania experienced a real economic growth of +0.9% in 2Q 2023 vs. 1Q 2023.
The Gross Domestic Product (GDP) recorded an increase of 2.7% compared to the same quarter of the year 2022 on a seasonally adjusted series.
In 1H 2023, the Gross Domestic Product raised by 1.7% compared to the first half of 2022 on a raw series basis, and by 2.8% on a seasonally adjusted series basis. The uncertainties surrounding Romania's future GDP evolution are further confirmed by the existence of divergent economic growth scenarios among the estimates provided by the National Institute of Statistics (INS), the IMF, the
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Lion Capital SA published this content on 31 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 August 2023 15:09:06 UTC.