Med Life S A : Board of Directors Report for 2022

March 27, 2023 at 06:19 pm EDT

CONSOLIDATED ADMINISTRATORS' REPORT

MED LIFE GROUP

YEAR ENDED 31 DECEMBER 2022

Table of Contents

1. Presentation of the Group .......................................................................... 3
2. 2022 Developments .................................................................................. 6
- 2.1. Acquisitions completed in 2022 ............................................................ 6
- 2.2. Organic growth ................................................................................. 8
3. Credit facilities contracted by the Group ....................................................... 9
4. Financial Analysis ................................................................................... 10
5. Main Financial Indicators ......................................................................... 14
6. Outlook for 2023 and mid-term ................................................................ 14
7. Non-Financial Information ....................................................................... 14
- 7.1. General presentation of the Group's activity ......................................... 14
- 7.2. Business Model ............................................................................... 15
- 7.3. Strategy and results ......................................................................... 15
- 7.4. People and resources ....................................................................... 16
- 7.5. Quality Standards ............................................................................ 16
- 7.6. Principles for respecting human rights ................................................. 17
- 7.7. Anti-Bribery and Anti-Corruption principles .......................................... 17
- 7.8. Corporate Social Responsibility .......................................................... 17
- 7.9. Research ........................................................................................ 18
8. Corporate Governance ............................................................................ 18
- 8.1. Corporate governance statement ....................................................... 18
- 8.2. Shareholding structure ..................................................................... 19
- 8.3. The shares evolution on the Bucharest Stock Exchange ......................... 19
- 8.4. The Management of the Company ...................................................... 19
- 8.5. Audit Committee ............................................................................. 21
- 8.6. Remuneration Committee ................................................................. 22
- 8.7. Internal Control - Internal Audit function ............................................. 22
- 8.8. The activity of MedLife from the Investors Relations perspective ............. 22

9. Risk exposure and risk management ......................................................... 23

10. Corporate events ................................................................................... 24

10.1. Corporate events during 2022 ........................................................... 24

10.2. Subsequent events to the reporting period .......................................... 25

MED LIFE GROUP

CONSOLIDATED ADMINISTRATORS' REPORT AS AT 31 DECEMBER 2022

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

1. Presentation of the Group

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 33,217,623, 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 34 hyperclinics, 64 clinics, 11 hospitals - located in Bucharest, Arad, Sibiu, Brasov, Cluj and Ploiesti, 36 laboratories, 23 pharmacies and 18 dental clinics. The Group has also more than 170 private clinic partners around Romania.

Medlife is the leading private health care services provider in Romania, having a significant market share at a national level.

List of the entities part of MedLife Group as at 31 December 2022 and 1 January 2022 are presented below: (ownership percentage):

No.

Entity

Main activity

Location

31 December 2022

1 January 2022

1 2 3 4 5 6 7

Policlinica de Diagnostic Rapid SA

Medical Services

Brasov, Romania

83% 83%

Medapt SRL (indirect)* Histo SRL (indirect)* Policlinica de Diagnostic Rapid Medis SRL (indirect)*

Medical Services Medical Services

Medical Services

Brasov, Romania Brasov, Romania Sfantu Gheorghe, Romania

83% 83%

50% 50%

66% 66%

Bahtco Invest SA

Med Life Ocupational SRL

Development of building projects Medical Services

Bucharest, Romania Bucharest, Romania

100% 100%

Pharmalife-Med SRL

Distribution of Pharmaceutical Products in specialised stores

Bucharest, Romania

100% 100%

Med Life Broker de Asigurare si Reasigurare SRL

Accipiens SA

Genesys Medical Clinic SRL (indirect)*

Bactro SRL (indirect)* Transilvania Imagistica SA (indirect)*

Insurance broker Rental activities Medical Services Medical Services Medical Services

Bucharest, Romania Arad, Romania Arad, Romania Deva, Romania Oradea, Romania

99% 99%

83% 73%

Biofarm Farmec SRL (indirect)*

Distribution of Pharmaceutical Products in specialised stores

Arad, Romania

100% 100%

RUR Medical SA (indirect)* Biotest Med SRL

Medical Services

Vital Test SRL

Centrul Medical Sama SA

Medical Services Medical Services Medical Services

Brasov, Romania Bucharest, Romania Iasi, Romania Craiova, Romania

83% 83%

100% 100%

90% 90%

Ultratest SA (direct si indirect)*

Medical Services

Craiova, Romania

92% 92%

Diamed Center SRL

Prima Medical SRL

Medical Services Medical Services

Bucharest, Romania Craiova, Romania

100% 100%

Stem Cells Bank SA Dent Estet Clinic SA Green Dental Clinic SRL (indirect)*

Medical Services Dental healthcare

Timisoara, Romania Bucharest, Romania

100% 100%

60% 60%

Dental healthcare

Bucharest, Romania

31% 31%

Dentist 4 Kids SRL (indirect)* Dent A Porter SRL (indirect)*

Dental healthcare Dental healthcare

Bucharest, Romania Bucharest, Romania

60% 60%

31% 31%

26 27 28

Dentestet Kids SRL (indirect)*

Dental healthcare

Bucharest, Romania

32% 32%

Aspen Laborator Dentar SRL (indirect)*

Centrul Medical Panduri SA

Dental healthcare Medical Services

Bucharest, Romania Bucharest, Romania

45% 45%

100% 100%

Page | 3

CONSOLIDATED ADMINISTRATORS' REPORT AS AT 31 DECEMBER 2022

MED LIFE GROUP

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

No.

Entity

Almina Trading SA

Anima Specialty Medical Services SRL

Anima Promovare si Vanzari SRL (indirect)*

Valdi Medica SA Clinica Polisano SRL Solomed Clinic SA

Solomed Plus SRL (indirect)* Ghencea Medical Center SA Sfatul medicului SRL

RMC Dentart (indirect)* RMC Medical (indirect)* RMC Medlife

Badea Medical SRL Oncoteam Diagnostic SA

Centrul medical Micromedica SRL

Micromedica Targu Neamt SRL (indirect)*

Micromedica Bacau SRL (indirect)*

Micromedica Roman SRL (indirect)*

Medrix Center SRL (indirect)* Spitalul Lotus SRL

Labor Maricor SRL (indirect)* Centrul Medical Matei Basarab SRL (indirect)*

Pharmachem Distributie SRL

CED Pharma SRL (indirect)*

Leti Pharm 2000 SRL (indirect)*

Monix Pharm SRL (indirect)*

55 56 57

KronDent SRL (indirect)* Medica SA

Dent Estet Ploiesti SRL (indirect)*

58 59 60

The Lab Stomestet SRL (indirect)*

Stomestet SRL (indirect)*

Stomestet Plus SRL (indirect)*

Costea Digital Dental SRL (indirect)*

62 63 64

Expert Med Centrul Medical Irina (indirect)*

MNT Healthcare Europe SRL MNT Asset Management SRL (indirect)*

Clinica Life-Med SRL (indirect)*

66 67 68

Pro Life Clinics SRL (indirect)*

Onco Card SRL (indirect)*

Onco Card Invest SRL (indirect)*

Tomorad Expert SRL (indirect)*

Main activity

Medical Services

Medical Services Medical Services Medical Services Medical Services Medical Services Medical Platform Dental healthcare Medical Services Holding

Medical Services Medical Services

Medical Services

Medical Services Medical Services Medical Services

Medical Services

Distribution of Pharmaceutical Products

Distribution of Pharmaceutical Products in specialised storesDistribution of Pharmaceutical Products in specialised storesDistribution of Pharmaceutical Products in specialised stores

Dental healthcare

Medical Services

Dental healthcare

Dental healthcare Dental healthcare Dental healthcare

Dental healthcare

Medical Services Medical Services Holding

Medical Services

Medical Services Medical Services Holding

Medical Services

Location

Targoviste, Romania

Bucharest, Romania

Cluj, Romania Sibiu, Romania Pitesti, Romania Pitesti, Romania Bucharest, Romania Bucharest, Romania Budapesta, Ungaria Budapesta, Ungaria Budapesta, Ungaria Cluj, Romania Bucharest, Romania Piatra Neamt, Romania Targu Neamt, Romania

Bacau, Romania

Roman, Romania

Roznov, Romania Ploiesti, Romania Bacau, Romania

Bucharest, Romania

Bucharest, RomaniaBucharest, RomaniaBucharest, Romania

Brasov, Romania Sibiu, Romania

Ploiesti, Romania

Cluj, Romania Cluj, Romania Cluj, Romania

Oradea, Romania

Galati, Romania Ilfov, Romania Bucharest, Romania

Bucharest, Romania

Iasi, Romania Brasov, Romania Brasov, Romania

Sfantu Gheorghe, Romania

31 December 2022

1 January 2022

90% 80%

100% 100%

55% 55%

100% 100%

80% 80%

100% 100%

81% 51%

65% 65%

79% 75%

100% 100%

75% 75%

100% 100%

36% 36%

60% 60%

31% 31%

36% 36%

76% 76%

50% 0%

100% 0%

60% 0%

83% 0%

66% 0%

MED LIFE GROUP

CONSOLIDATED ADMINISTRATORS' REPORT AS AT 31 DECEMBER 2022

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

31 December 1 JanuaryNo. Entity

Main activity

Location

2022

IT Repair SRL (indirect)*

Medical Services

Medici's SRL * Micro-Medic SRL *

Sweat Concept One SRL * OptiCristal Consult SRL (indirect)*

Medical Services Medical Services Wellness

Targu Mures, Romania Timisoara, Romania Timisoara, Romania Bucharest, Romania

50% 0%

80% 0%

60% 0%

Medical Services

Brasov, Romania

50% 0%

Alinora Optimex SRL (indirect)*

Medical Services

Brasov, Romania

50% 0%

Medicris SRL (indirect)* Triamed SRL (indirect)*

Medical Services Medical Services

Oradea, Romania Oradea, Romania

83% 0%

SC M-Profilaxis SRL (indirect)* Medical Services

VitaCare Flav SRL (indirect)* Dent Estet Genesys SRL (indirect)*

Aspire Dental SRL (indirect)*

Sanopass SA

Medical Services Medical Services Dental healthcare Medical Platform

Timisoara, Romania Pitesti, Romania Arad, Romania

80% 0%

71% 0%

Bucharest, Romania Targoviste, Romania

60% 0%

51% 0%

*These companies are subsidiaries in other subsidiaries in the Group and are included in the consolidation as they are controlled by the entities which are subsidiaries of the ultimate parent

Business Model

MedLife Group business model is focused on providing medical services to clients, both natural and legal persons. The Group seeks to capture the private healthcare spending of these clients throughout all stages of the medical act: prevention, diagnosis and treatment, by offering a wide range of medical services delivered in modern, high-quality facilities, by professional teams of doctors, nurses and support personnel. The Group places great emphasis on the quality of the services offered to its patients, operating an IT infrastructure and customer service and sales operations that has served over 5.5 million unique patients, representing over 1 in 4 Romanians.

The Group divides its operations into six main business lines:

• Corporate: The Corporate business line offers HPPs (health prevention packages) to corporate clients as part of their employee benefit packages. These programmes, which focus on prevention through regular check-ups and access to diagnostic services, complement the legally required occupational health services that corporate clients also contract from the Group as the Standard HPP.
The Group has a portfolio of over 800,000 HPPs patients.

The HPPs offered by the Group consist of the following:

- Mandatory occupational health services, which mainly include the provision of annual employee check-ups and more specific services depending on the client's industry. Many companies begin by purchasing occupational health services under the "Standard" HPP and then add benefits under broader HPPs from the same provider for certain or all of their employees, providing an upselling opportunity for the occupational health provider.
- More general, "prevention oriented" health plans, providing expanded access to general practitioners and certain specialists in the Group's clinics and as well as specified laboratory tests and diagnostic imaging for higher end packages. The specific services vary depending on the type of package.
- • Clinics: The Clinics business line includes the Group's ambulatory clinics and diagnostic imaging services. Clinics offer general practitioner and specialist consultations, diagnostic imaging services, and some of the clinics also offer day-inpatient services.

The Group's clinics provide a wide range of services delivered mainly in two formats:

- Hyper clinics, a format pioneered by the Group in Romania, consisting of large facilities with more than 20 medical offices and surface areas of more than 1,000 sqm. It is a one-stop-shop for clinical examinations and imaging. This format is designed for larger urban areas, with a population over 175,000 inhabitants. Hyper clinics would usually include on site a broad range of imaging services such as radiology, bone density - DEXA, CT, MRI, 2D-4D ultrasounds and Mammography; in the case of new openings, such services may be included in the hyper clinics' offering gradually. Hyper clinic locations also host the services of other business lines, such as sampling points for laboratories or pharmacies.
- Clinics, offering a range of treatments from general practitioner services to specialists, are aimed at servicing the core needs of the Group's HPP patients, but also FFS patients and patients opting for services subsidised by the National Health Insurance House. The Group's clinics typically have between 5 and 12 medical offices, although smaller satellite clinics are in operation to address specific market situations. Clinics are designed for smaller cities or to serve specific

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Med Life SA published this content on 27 March 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 March 2023 22:18:11 UTC.

End-of-day quote Bucharest S.E. Other stock markets 06:00:00 2024-04-25 pm EDT			5-day change	1st Jan Change
4.115 ^RON	+0.37%		+2.88%	+3.39%

Apr. 03	Med Life S.A. (BVB:M) acquired an unknown majority stake in Personal Genetics Srl.	CI
Feb. 29	Med Life S.A. Reports Earnings Results for the Full Year Ended December 31, 2023	CI

Med Life S.A. (BVB:M) acquired an unknown majority stake in Personal Genetics Srl.	Apr. 02	CI
Med Life S.A. Reports Earnings Results for the Full Year Ended December 31, 2023	Feb. 29	CI
Transcript : Med Life S.A., 2023 Earnings Call, Feb 29, 2024	Feb. 29
Med Life S.A. Reports Earnings Results for the Nine Months Ended September 30, 2023	Nov. 09	CI
Med Life S.A. Reports Earnings Results for the Half Year Ended June 30, 2023	23-08-24	CI
Med Life S.A.(BVB:M) added to Bucharest Exchange Trading Index	23-07-12	CI
Med Life S.A.(BVB:M) dropped from Bucharest Exchange Trading Index	23-07-11	CI
Med Life S.A. Reports Earnings Results for the First Quarter Ended March 31, 2023	23-05-12	CI
Med Life S.A. Reports Earnings Results for the Full Year Ended December 31, 2022	23-02-23	CI
Med Life S.A. (BVB:M) completed the acquisition of Centrul De Diagnostic Si Tratament Provita Srl.	23-02-23	CI
Med Life S.A. (BVB:M) acquired 99.76% stake in Muntenia Medical Competences SA.	23-01-09	CI
Med Life S.A. (BVB:M) completed the acquisition of 80% stake in Medici's Group.	22-10-23	CI
Med Life S.A. (BVB:M) agreed to acquire 51% stake in Centrul De Diagnostic Si Tratament Provita Srl.	22-10-04	CI
Med Life S.A.(BVB:M) added to FTSE All-World Index	22-09-19	CI
Med Life S.A. (BVB:M) acquired 51% stake in SanoPass SRL.	22-09-11	CI
Med Life S.A. (BVB:M) acquired 60% stake in SC Sweat Concept One SRL.	22-09-08	CI
Med Life S.A. (BVB:M) signed sale purchase agreement to acquire 99.76% stake in Muntenia Medical Competences SA.	22-08-25	CI
Med Life S.A. Reports Earnings Results for the Half Year Ended June 30, 2022	22-08-25	CI
Med Life S.A. (BVB:M) acquired 60% stake in Opticristal - ophthalmological clinic.	22-08-03	CI
Med Life S.A. (BVB:M) agreed to acquire 60% stake in SWEAT CONCEPT ONE.	22-07-03	CI
Med Life S.A. (BVB:M) acquired 80% stake in M - Profilaxis Srl.	22-06-28	CI
Med Life S.A. (BVB : M) acquired Medicris Oradea Group.	22-06-23	CI
Med Life S.A. (BVB:M) entered into an agreement to acquire 80% stake in Medici's Group.	22-06-20	CI
Med Life S.A. (BVB:M) acquired Medical centre in Targu Mures.	22-06-09	CI
Med Life S.A. (BVB:M) Acquired Diagnostics centre in Sfantul Gheorghe.	22-06-09	CI

	1st Jan change	Capi.
MED LIFE S.A.	+3.39%	464M
CVS HEALTH CORPORATION	-14.40%	84.68B
HCA HEALTHCARE, INC.	+14.82%	81.12B
DR. SULAIMAN AL HABIB MEDICAL SERVICES GROUP COMPANY	+11.62%	29.59B
LABORATORY CORPORATION OF AMERICA HOLDINGS	-9.06%	16.73B
FRESENIUS SE & CO. KGAA	-1.39%	16.36B
PURE HEALTH HOLDING	-31.58%	11.77B
FRESENIUS MEDICAL CARE AG	+1.82%	11.72B
DAVITA INC.	+30.80%	11.71B
EUROFINS SCIENTIFIC SE	-0.47%	11.66B

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