ANNUAL FINANCIAL REPORT

FOR THE PERIOD 1 JANUARY – 31 DECEMBER 2021

TABLE OF CONTENTS:

DECLARATION OF THE BoD REPRESENTATIVES

DIRECTORS’ REPORT

CORPORATE GOVERNANCE STATEMENT (Law 4548/2018)

AUDIT COMMITTEE REPORT

ANNUAL FINANCIAL STATEMENTS

INDEPENDENT AUDITOR’S REPORT

DECLARATION OF THE REPRESENTATIVES OF THE BOARD OF DIRECTORS - CORAL GROUP OF COMPANIES

DECLARATION OF THE REPRESENTATIVES

OF THE BOARD OF DIRECTORS OF

“CORAL OIL AND CHEMICAL PRODUCTS SOCIETE ANONYME”

Pursuant to the provisions of article 4 paragraph 2 item c of Law 3556/2007 we hereby declare that to the best of our knowledge:

A. The single and consolidated financial statements of “CORAL SINGLE MEMBER SA OIL AND CHEMICAL PRODUCTS” (the Company) for the year ended on December 31st, 2021, which have been prepared in accordance with the applicable accounting standards, truly present the assets, the liabilities, the shareholders’ equity and the statement of comprehensive income of the Company and the companies included in the consolidated financial statements taken as a total, and

B. The Board of Directors’ annual report truly presents the course, the performance and the position of the Company and the companies included in the consolidated financial statements taken as a total, including the description of the most important risks and uncertainties they are facing.

Marousi, April 2 0th , 202 2

Coral Group of Companies

Management Report for the year ended on 31 December 2021

The financial data of the Group for the year 2021 compared to the corresponding data of the year 2020 are presented below:

Accordingly, the financial data of the Company for the year 2021 compared to the corresponding data of the year 2020 are presented below:

The comparative amounts of the Group and the Company for the year 2020 have been revised due to the change in accounting policy of IAS 19.

1.1 Revenue

The gross turnover of the Group increased in the year 2021 by € 676 million , presenting a percentage change of 37.5 % compared to the previous year, as shown in the table below:

The sales analysis per geographical segments of operation and by sales category for the Group is as follows:

The total quantity traded by the Group during the year ended 12/31/2021 and during the comparative period is analyzed in the following table:

The amount of fuel traded by the Group increased by approximately 7.4%.

The Company's revenue for the year 2021 amounted at € 2,143 million from € 1,595 million in the year 2020, showing an increase by approximately 34.4%.

The analysis of sales by geographical segment of activity and by sales category of the Company is as follows:

The total quantity traded by the Company during the year ended 12/31/2021 and during the comparative period is analyzed in the following table:

The quantities of fuel traded by the Company recorded an increase of approximately 9.2%.

The gross profit margin before depreciation of the Group amounted to € 232,572 thousand or 9.4% on turnover, compared to € 156,600 thousand or 8.7% on turnover of the previous year, showing an increase of approximately 48.5%.

The gross profit margin before depreciation of the Company amounted to € 105,144 thousand or 4.9% on turnover, compared to € 58,957 thousand or 3.7% on turnover of the previous year, showing an increase of approximately 78.3%.

1.3 Operating expenses

The following table presents the movement of operating expenses between fiscal years 2021 and 2020:

As evidenced in the table above, the Group’s operating expenses show an increase of approximately € 22,709 thousand or approximately 13.9%. The increase of operating expenses is mainly due to the integration of results of the acquired subsidiary in Croatia as well as the increase of the sites’ managers fees as a result of the limitation of measures regarding Covid-19.

In order to better assess and compare the movement of operating expenses within the two periods, the following table presents the most important expenses categories .

Operating expenses for 2021 represent a percentage equal to 7.5% of turnover for the year, while for 2020 the corresponding percentage amounted to 9.1%.

According to the data above, the operating expenses of the Company during the current year increased compared to the previous period, representing a percentage equal to 4.8% of the turnover (6.3% for the year 2020).

1.4 Other operating income

Other operating income of the Group and the Company increased in current year by 5.2% and 3.9% respectively.

1.6 Financial expenses

* Fair Value Through Profit and Loss Statement

* Fair Value Through Profit and Loss Statement

Income from Associates amounting to € 2,357 thousand relate to the Group's ratio to the financial results of the companies consolidated using the Equity method "Shell & MoH SA Aviation Fuels" and "Petroleum Facilities of Rhodes - Alexandroupolis SA".

Interest income includes mainly interest earned on deposits, as well as finance income from discounted repayable credits amounting to € 207 thousand for the year 2021 and € 272 thousand for the year 2020.

Finally, the income from dividends for the current year includes dividends amounting to €2,842 thousand from the affiliated company “Shell & MoH SA Aviation Fuels”, as well as dividends from subsidiaries “Hermes SA”, “Myrtea SA” and “Medprofile Ltd.” (€2,000 thousand, €1,000 thousand and €750 thousand respectively). In the comparative period dividend income includes €1,568 thousand and 169 thousand from the affiliated companies “Shell & MoH SA Aviation Fuels” and “Petroleum Facilities Rhodes - Alexandroupolis SA” respectively, as well as dividends from subsidiaries “Hermes SA” and “Myrtea SA” (€ 2,000 thousand and € 3,000 thousand respectively).

1.8 Income tax

Income tax is calculated at a corporate tax rate of 22% for 2021 and 24% for the comparative period 2020.

2. Financial Ratios

The basic financial ratios of the group are as follows:

The calculation of key financial ratios also includes the effect from the application of IFRS 16.

3. Transactions among Related Parties

The following transactions refer to transactions with related parties:

Benefits to management

Compensation of key management personnel

The remuneration of directors and key management personnel of the Group for the period 1/1–12/31/2021 and 1/1–12/31/2020 amounted to € 3,243 thousand and € 3,815 thousand respectively. (Company: 1/1–12/31/2021: € 2,791 thousand, 1/1– 12/31/2020: € 3,666 thousand)

Other short-term benefits granted to key management personnel of the Group amounted to € 433 thousand for the period 1/1– 12/31/2021 and € 149 thousand for the period 1/1–12/31/2020 (Company: 1/1–12/31/2021: € 169 thousand, 1/1–12/31/2020: € 118 thousand).

Termination indemnities were not paid to key management personnel of the Group for the year 2021 and € 111 thousand for the year 2020.

Directors’ Transactions

There are receivables between the companies of the Group and the executives amounting to € 120 thousand for the year 2021 and 2020.

4. Operations review

4.1 Investments - Development

In 2021 we managed to complete 13 new own-operating and 27 new co-operating gas stations, while we built 24 new Smart Shops, 24 new I love Café, and 18 new Plinto car washing machines.

We also continued the installation of electric chargers at city gas stations, in addition to those of the highways that we had already equipped by 2020, enabling our customers to equip their electric cars at 60 of our gas stations across the country. Finally, in our network of service stations we added 9 more LPG facilities, raising the network of our service stations that have Autogas to 90 in total.

In addition, the Group has laid the foundations for the expansion of its activities in the Balkan countries and Cyprus through the establishment of new companies, namely:

➢ CORAL ENERGY PRODUCTS (CYPRUS) LTD is the company entitled to use the Shell trademarks in Cyprus. The company was named after the completion of acquisition Lukoil Cyprus Limited by Coral SA, in January 2017. The company's core operation in Cyprus is the distribution and trading, through Shell gas stations, of a wide range of petroleum products such as petrol, diesel and lubricants. The company already operates 38 gas stations under the Shell brand, 20 of which are self- operating. It is also active in industrial and marine fuels and lubricants. Efforts to further develop the network with new service stations continue, securing 8 new leases related to the construction of service stations from a plot of land, 2 of which will be implemented in 2022.

➢ CORAL SRB DOO BEOGRAD is the company entitled to use the Shell trademark in Serbia. The company was established in 2017 with the objective to distribute and trade, through Shell branded gas stations, a wide range of petroleum products such as fuel, oil and lubricants. Coral Serbia aims to grow with targeted investments in its central gas stations through which it will be able to supply quality products and services to Serbian consumers. There are already nine service stations, two on on the main highways Ε70 & Ε75. Additionally, there has been an agreement for the construction of two new own-operating gas stations, their operation is scheduled within the next twelve months.

➢ CORAL FUELS DOO SKOPIE is the company entitled to use the Shell trademark in North Macedonia. Coral Fuels aims to grow in the market with service stations through which it will be able to provide quality products and services to consumers. The company operates its first two gas stations on highway E75 on Gevgelia, while the opening of two more is planned in 2022.

➢ CORAL CROATIA DOO is the company entitled to use the Shell trademark in Croatia. It operates 27 gas stations under the Shell trademark while the operation of 3 more is planned in 2022. It is also active in the retail and wholesale trade of oil and chemical products and lubricants.