Santierul Naval Orsova S.A.

Quarterly Report • Nov 13, 2017

S.C. "ŞANTIERUL NAVAL ORŞOVA" S.A. No. RC J25/150/1991 CIF: RO 1614734 Share capital: - issued 28.557.297,5 lei - paid up 28.557.297,5 lei No. 4. Tufări Street, Orşova, 225200, Mehedinţi Tel.: 0252/362.399; 0252/361.885; Fax: 0252/360.648 E-mail:mircea.sperdea@snorsova.ro;marketing@snorsova.ro COD LEI: 254900UXAJ8TPIKLXG79 IBAN code: RO96RNCB0181022634120001- B.C.R. Orşova

TRIMESTRAL REPORT CORRESPONDING TO THE PERIOD 01.01- 30.09.2017 IN COMPLIANCE WITH THE LAW NO. 297/2004 CONCERNING THE MARKET CAPITAL AND THE REGULATION CNVM NO. 1/2006

IBAN code: RO59BRDE260SV03176142600- B.R.D. Orşova

DATE OF THE REPORT: 10.11.2017 NAME OF THE TRADING COMPANY: S.C. ŞANTIERUL NAVAL ORŞOVA S.A HEADQUARTERS: NO. 4 TUFĂRI STREET, ORŞOVA TOWN, 225200 MEHEDINŢI COUNTY PHONE: 0252/362399; FAX: 0252/360648 SOLE REGISTRATION CODE AT THE TRADE REGISTER OFFICE: 1614734, TAX ATTRIBUTE RO NUMBER IN THE TRADE REGISTER: J25/150/1991 COD LEI: 254900UXAJ8TPIKLXG79 SHARE CAPITAL ISSUED AND PAID UP: 28.557.297,5 LEI REGULATED MARKET WHERE THE REAL ESTATE VALUES ISSUED ARE TRANSACTIONED: STOCK EXCHANGE BUCHAREST

• A. The accounting reporting forms at 30.09.2017, respectively: the status of the financial position and the status of the global result, are attached to the present report, with the following stipulations:
• The numbers from the reporting forms are expressed in lei;
• The reporting data at 30.09.2017 have not been audited by an external independent financial auditor.
• In comparison to the provisions under BVC on 30.09.2017, the gross profit was realized 78,6% (gross profit stipulated in BVC: 1.700.000 lei, realized: 1.336.044 lei). In comparison to the similar period from 2016 (realized profit in 30.09.2016: 2.996.946 lei) registered a decline of 55.4 %.

The operational incomes recorded a significant decrease of, around 40%, in comparison to the period corresponding to the previous year (operational incomes on 30.09.2016: 60.854.677 lei from 36.154.323 lei on 30.09.2017). This decrease highly influenced the profit reaching, too.

Main cause of these unfulfillment represents delivery times shifting for some vessels built at headquarter in Orsova.

On 30.09.2017 the company did not have any pending dues to its suppliers, state budget, employees or other creditors, all these being paid within the due/contract time.

As well, the company is not having any bank credits on 30.09.2017.

The investment expenses on 30.09.2017 representing acquisitions and modernizations of fixed assets sum up 2.300.477 lei in comparison to 3.800.000 lei stipulated in the BVC and to 1.528.284 lei on 30.09.2016.

B. THE ECONOMICAL AND FINANCIAL INDICATORS ON THE DATE OF 30 SEPTEMBER

DESCRIPTION OF THE	CALCULATION	RESULT
INDICATOR	MANNER
1. Indicator of current liquidity1)	Current assets	6,29
	Current debts
2. Indicator of the degree of indebtness2)	Borrowed capitalx100	0 (zero)
	Own capital
3. Turnover speed, for clients debit	Clients' average	68 DAYS
items3)	balance*270
	Turnover
4. Fixed assets turnover speed4)	Turnover	1,02
	Fixed assets

2017(APPENDIX NO. 30 B TO THE C.N.V.M. REGULATION no. 1/2006)

NOTE:

1) It offers the guarantee of covering the current debts from the current assets.

The recommended acceptable value is approximately 2.

2) It expresses the effectiveness of the credit risk management, indicating the possible issues concerning the financing, the liquidity, with influences in the accomplishment of the undertaken commitments.

S.C. ŞANTIERUL NAVAL ORŞOVA does not have any credits contracted which exceed 1 year, consequently, this indicator is 0 (zero).

• 3) It expresses the effectiveness of the company to collect its account receivables, respectively the number of days up to the date when the debtors pay their debts to the company.
• 4) It expresses the effectiveness of the fixed assets management, by examining the turnover generated by a certain amount of fixed assets.

Referința/ Reference IAS 1.10(a), 113		Ran d	30.09.2017	01.01.2017
	Active / Assets		(lei)	(lei)
	Active Imobilizate/ Fixed assets
IAS 1.54(a)	Imobilizări corporale/ Tangible assets	01	35.062.869	36.351.595
	Terenuri şi amenajări la terenuri/ Lands and land arrangements	02	1.201.941	1.220.578
	Construcţii/ Constructions	03	17.701.086	19.028.061
	Instalaţii tehnice şi mijloace de transport/ Technical equipments and transport means	04	15.658.383	15.343.289
	Mobilier, aparatură birotică […]/ Furniture, office automation []	05	94.246	68.168
	Imobilizări corporale în curs de execuţie/ Pending tangible assets	06	407.213	691.499
IAS 1.54(c)	Imobilizări necorporale/ Intangible assets	07	41.244	56.102
	Alte imobilizări necorporale/ Other intangible assets	08	41.244	56.102
IAS 1.54(h)	Creanţe comerciale şi alte creanţe/ Trade receivables and other receivables	09	99.641	70.550
IAS 1.54(o), 56	Creanţe privind impozitul amânat/ Receivables concerning the delayed taxation	10	5.592	68.004
IAS 1.60	Total Active Imobilizate/ Total of Fixed Assets	11	35.209.346	36.546.251
	Active curente / Current assets
IAS 1.54 (g)	Stocuri/ Stocks	12	44.480.125	38.953.852
IAS 1.54(h)	Creanţe comerciale şi alte creanţe / Trade receivables and other receivables	13	9.913.038	3.944.403
IAS 1.55	Cheltuieli înregistrate în avans/ Expenses recorded in advance	14	99.763	42.990
IAS 1.54(d)	Alte investiții pe termen scurt/Short term investments	15	6.602.309	6.116.440
IAS 1.54(i)	Numerar şi echivalente de numerar/ Cash and cash equivalents	16	5.214.309	15.360.927
IAS 1.60	Total Active Curente/ Total of Current Assets	17	66.309.544	64.418.612
	Total Active / Total of Assets	18	101.518.890	100.964.863
	Capitaluri Proprii/ Equity capital
IAS 1.54(r), 78(e)	Capital social/ Share capital	19	28.557.298	28.557.298
	Ajustari ale capitalului social/ Adjustment of the share capital	20	0	23.496.414
IAS 1.55, 78(e)	Prime de capital/ Capital premiums	21	8.862.843	8.862.843
IAS 1.54(r), 78(e)	Rezerve/ Spares	22	47.755.220	53.243.274
	Alte rezerve din aplizarea IAS 29/ Other spares from application of IAS 29	23	0	16.962.110
	Rezultatul exerciţiului/ Result of the financial year	24	1.035.331	2.792.859
IAS 1.55, 78(e)	Rezultatul reportat/ Reported result	25	4.839.165	(1.075.167)

	Total Capitaluri Proprii şi Datorii/ Total Equity Capitals and Debts	36	101.518.890	100.964.863
	Total Datorii/ Total of debts	35	14.079.046	12.483.642
IAS 1.60	Total Datorii Curente/ Total Current Debts	34	10.535.835	8.761.972
IAS 1.54(l)	Provizioane/ Provisions	33	114.753	594.374
IAS 1.54(k)	Datorii comerciale şi alte datorii, inclusiv instrumente financiare derivate / Commercial debts and other debts, including derived financial instruments	32	10.421.082	8.167.598
	Datorii Curente/ Current debts
IAS 1.60	Total Datorii pe Termen Lung / Total of Long -term debts	31	3.543.211	3.721.670
IAS 1.54(o), 56	Datorii privind impozitul amânat/ Debts concerning the delayed taxation	30	3.543.211	3.721.670
	Datorii pe Termen Lung / Long -term debts
	Datorii/ Debts
	Total Capitaluri Proprii/ Total Equity Capitals	29	87.439.844	88.481.221
	Alte elemente de capitaluri proprii/ Other elements of Equity Capital	28	(3.543.211)	(3.721.670)
	Repartizarea profitului/ Profit allotment	27	(66.802)	(178.216)
	Rezultatul reportat provenit din aplicarea pentru prima deata a IAS 29/ Reported result coming from the application of IAS 29 from the first time	26	0	(40.458.524)

Referinta/ Reference

IAS 1.10(b),		Rand	30.09.2017	30.09.2016
81(a)			lei	lei
	Activităţi Continue / Permanent Activities
IAS 1. 82(a)	Venituri / Incomes	01	29.732.025	52.788.897
IAS 1.99,103	Alte venituri/ Other incomes	02	6.422.298	8.065.780
	Total Venituri Operaţionale/ Total Operational Incomes	03	36.154.323	60.854.677
	Cheltuieli privind stocurile/ Expenses concerning the stocks	04	(12.536.951)	(24.976.321)
	Cheltuieli privind utilităţile/ Expenses concerning the utilities	05	(621.959)	(1.115.226)
	Cheltuieli cu beneficiile angajaţilor/ Expenses with the benefits of the employees	06	(12.209.815)	(16.367.361)
	Cheltuieli cu amortizarea şi deprecierea imobilizărilor/ Expenses with the depreciation and impairment of the immobilisations	07	(3.372.849)	(5.170.641)
	Câştiguri / pierderi din cedarea imobilizărilor/ Profit / loss from the immobilisations' disposals	08	4.124	0
	Ajustarea valorii activelor curente/ Value adjustment of the current assets	09	(1.198)	62.756
	Ajustări privind provizioanele/ Adjustment of commissions	10	479.621	(421.281)
IAS 1.99, 103	Alte cheltuieli/ Other expenses	11	(6.961.164)	(9.620.026)
	Total Cheltuieli Operaţionale/ Total Operational Expenses	12	(35.220.191)	(57.608.100)
	Rezultatul Activităţilor Operaţionale / Result of the Operational Activities	13	934.132	3.246.577
	Venituri financiare/ Financial Incomes	14	825.240	714.877
IAS 1.82(b)	Cheltuieli financiare/ Financial expenses	15	(423.328)	(964.508)
	Rezultatul Financiar Net/ Net Fiscal Result/ Net Fiscal Result	16	401.912	(249.631)
IAS 1.85	Rezultatul înainte de impozitare/ Result before Taxation	17	1.336.044	2.996.946
	Cheltuieli cu impozitul pe profit curent / Expenses with the tax on the current profit	18	(238.301)	(681.406)
	Cheltuieli cu impozitul pe profit amânat/ Expenses with the tax on the delayed profit	19	(310.413)	(34.324)
	Venituri aferente impozitului pe profit amânat/ Incomes corresponding to the tax on the delayed profit	20	248.001	7.794
IAS 1.85	Rezultatul din Activităţi Continue/ Result from Permanent Activities	21	1.035.331	2.289.010
IAS 1.82(f)	Rezultatul Perioadei/ Result of the Period	22	1.035.331	2.289.010
	Alte Elemente ale Rezultatului Global/ Other parts of the Global Result
IAS 1.82(g)	Reevaluarea imobilizărilor corporale/ Re-assessment of the tangible assets	23	(95.151)	0

IAS 1.85	Alte Elemente ale Rezultatului Global, după impozitare/ Other elements of the Global Result, after Taxation	24	(95.151)	0
IAS 1.82 (i)	Total Rezultat global aferent perioadei/ Total of the Global Result corresponding to the Period	25	940.180	2.289.010
	Profit atribuibil/ Profit assigned
IAS 1.83(b)(ii)	Acţionarilor Societăţii/ To the company's Shareholders	26	1.035.351	2.289.010
	Profitul perioadei/ Profit of the period	27	1.035.331	2.289.010
	Total rezultat global atribuibil / Total assigned global result
IAS 1.83(b)(ii)	Acţionarilor Societăţii/ To the company's shareholders	28	940.180	2.289.010
	Rezultatul pe acţiune/ Result per action/ Result per action
IAS 33.66	Rezultatul pe acţiune de bază/ Result per main action	29	0,09	0,20
IAS 33.66	Rezultatul pe acţiune diluat/ Result per action attenuated	30	0,09	0,20
	Activităţi continue/ Permanent activities
IAS 33.66	Rezultatul pe acţiune de bază / Result per main action	31	0,09	0,20
IAS 33.66	Rezultatul pe acţiune diluat/ Result per action attenuated	32	0,09	0,20

Administrator, Dr. Ec. Mihai Fercală Director Economic, Ec. Gheorghe Caraiman