Sinteza S.A.

Earnings Release • Feb 15, 2018

Fax: 0259 462 224 e-mail: sinteza@ sinteza. ro www.sinteza.ro

C.U.I.: R0 67329 Nr. înreg. ORC-Bihor: J.05/197/1991

Cont BTRL: RO86BTRL00501202N98396XX Banca : Transilvania Oradea Cont EXIM: RO48EXIM109000019389RO01 Banca : EXIM BANK ORADEA Cont BRD: RO79BRDE050SV07449460500 Banca : BRD Oradea

PRELIMINARY REPORT FOR FINANCIAL RESULTS OF THE YEAR 2017

• DATE OF REPORT 15/02/2018
• - NAME OF ISSUING COMPANY SC"SINTEZA" SA
• TELEPHON: 0259456116
• REGISTRATION CODE NUMBER: 67329
• TRADE REGISTER NUMBER: J05/197/1991
• SUBSCRIBED CAPITAL: 9.916.888,50 RON

• -REGULATED MARKET WHERE SECURITIES ARE TRADED: - BUCHAREST STOCK EXCHANGE

• HEADQUARTERS ORADEA, BORSULUI ROAD No.35

This report contains preliminary financial statements for 2017, prepared in accordance with International Financial Reporting Standards (IFRS).

Preliminary financial statements are prepared in accordance with the requirements of the Order 881/2012 and Order 2844/2016, applicable to companies whose securities are traded on a regulated market.

In this regard, the statement of financial position contains the information concerning preliminary financial end of year 2017 and the end of financial year 2016.

Statement of comprehensive income include the information concerning the end of financial year 2017 and the end of financial year 2016.

The accounting policies have been applied consistently to the periods.

Appendix:

Appendix 1 - Statement of financial position, individual and consolidated - Preliminary

Appendix 2 - Statement of Comprehensive Income, individual and consolidated - Preliminary

General Manager

Catalin Marias

Statement of financial position, individual and consolidated - preliminary 31.12.2017

Indicator	Individual		Consolidated
	31.12.2017	31.12.2016	31.12.2017	31.12.2016
Tangible assets
Land an land design	13.971.880	13.971.880	13.971.880	13.971.880
Building	15.495.896	15.951.950	15.495.896	15.951.950
Technical installations and means of
transport	14.573.186	16.237.119	14.702.368	16.384.756
Furniture, office equipment	16.610	18.837	16.610	18.837
Tangible assets under construction	6.595.283	5.527.632	6.228.499	4.621.871
Intangible assets	0	0	0	0
Development expenses
Concessions, patents, licenses,
trademarks, similar rights and assets	0	0	0	0
Intangible assets uder construction	553.146	610.506	553.146	610.506
Financial assets
Shares in subsidiaries and other long
term investments	112.695	110.332	29.344	26.981
Total Tangible and Intangible assets	51.318.696	52.428.256	50.997.743	51.586.781
Current assets
Stocks	6.174.008	6.183.475	6.446.910	6.457.159
Trade receivables and other receivables	7.379.951	11.867.789	6.018.941	10.460.078
Expenses in advance	343.402	434.940	343.402	434.940
Cash and cash equivalents	251.264	3.101.497	252.048	3.108.976
Assets classified as held for sale	4.164.340	4.164.340	4.164.340	4.164.340
Total Current assets	18.312.945	25.752.041	17.225.641	24.625.493
Total Assets	69.631.641	78.180.297	68.223.384	76.212.274
Equity
Capital	9.916.889	9.916.889	9.920.639	9.920.639
Share premium	0	0	0	0
Reserves	55.531.330	55.531.330	56.973.958	56.875.357
Result for the year	-2.961.169	2.760.412	-3.381.261	1.887.468
Earnings	-5.836.443	-2.737.739	-8.281.603	-5.182.899
Other components of equity	-540	-1.352.345	-540	-1.354.061
Total Equity	56.650.067	64.118.547	55.231.193	62.146.504
Long term liabilities
Long term loans and other liabilities	2.830.265	3.780.741	2.830.265	3.780.741
Advance recorded revenue	0	0	0	0
Provisions	136.899	0	145.404	0
Deferred tax liabilities	0	0	0	0
Total Long Term Liabilities	2.967.164	3.780.741	2.975.669	3.780.741
Current liabilities
Short term loans	3.199.371	220.644	3.199.371	220.644
Trade payables and other liabilities, including
derivatives	6.439.567	9.948.886	6.441.679	9.952.906
Advance recorded revenue	281.102	17.109	281.102	17.109
Provisions	94.370	94.370	94.370	94.370
Liabilities classified as held for sale	0	0	0	0
Total Current Liabilities	10.014.410	10.281.009	10.016.522	10.285.029
Total Liabilities	12.981.574	14.061.750	12.992.191	14.065.770
Total Equity and Liabilities	69.631.641	78.180.297	68.223.384	76.212.274

Statement of comprehensive income, individual and consolidated-preliminary 31.12.2017

	Individual		Consolidated
Indicator
	31.12.2017	31.12.2016	31.12.2017	31.12.2016
Continue activities
Revenue	26.104.964	26.647.594	25.565.888	25.908.430
Other income	112.697	22.979.013	112.697	22.979.013
Stock variations	94.310	1.434.438	94.310	1.434.438
Total operating income	26.311.971	51.061.045	25.772.895	50.321.881
Expenditure on stocks	15.955.743	16.253.711	16.045.525	16.351.921
Expenditure on utilities	2.922.975	3.444.950	2.922.975	3.444.950
Employee benefits expense	3.706.124	3.298.070	4.214.117	3.783.427
Depreciation and amortization of fixed assets	2.214.003	2.022.026	2.232.457	2.040.481
Wins / losses on disposal of property	100.244	15.961.754	100.244	15.961.754
Adjustment of current assets	0	73.558	0	73.558
Adjustments for provisions	145.707	241.396	154.212	241.396
Other expenses	3.913.806	3.322.827	3.170.088	2.833.192
Total operating expenses	28.958.602	44.618.292	28.839.618	44.730.679
Result operational activities	-2.646.631	6.442.753	-3.066.723	5.591.202
Financial income	333.574	532.664	333.574	532.664
Financial expenses	648.112	980.617	648.112	980.617
Net Financial Result	-314.538	-447.953	-314.538	-447.953
Result before tax	-2.961.169	5.994.800	-3.381.261	5.143.249
Current income tax expense	0	3.234.388	0	3.255.781
Deferred income tax expense
Income from deferred taxes
The result from continuing operations	-2.961.169	2.760.412	-3.381.261	1.887.468
Total comprehensive income for the period	-2.961.169	2.760.412	-3.381.261	1.887.468