Sinteza S.A.

Quarterly Report • Nov 14, 2016

CURRENT REPORT according to C.N.V.M. Regulation no. 1/2006

Report Data:	11/14/2016
Name of issuing company:	S.C.SINTEZA S.A
Headquarters:	Oradea, 35 Borsului Road
Tel/Fax:	0259456116; 0259444969, Fax: 0259462224
VAT Reg. No.: .	RO 67329
Reg. No. at Commerce Register:	J05/197/1991
Share capital:	9.916.888,50 LEI

Regulated market where the issued securities are traded: Bucharest Stock Exchange

IMPORTANT EVENT TO BE REPORTED:

QUARTERLY REPORT according to C.N.V.M. Regulation no. 1/2006

This Quarterly Report includes in annex :

• 1) The financial statements on 09/30/2016, prepared in accordance with International Financial Reporting Standards (IFRS).
• Statement of financial position at 09/30/2016 (individual and consolidated)
• Statement of Comprehensive Income at 09/30/2016 (individual and consolidated) $\overline{a}$
• Notes to the financial statements ended on 09/30/2016
• 2) Economic and financial indicators specified in Appendix 30 B of ASF Regulation No.1 / 2006
• 3) Communication on the availability of quarterly report

Summary statement of economic and financial indicators is as follows:

• Balance sheet items:

			Achievements at:
Current Indicator issue		30.09.2016	30.09.2015
		RON	RON
	FIXED ASSETS	52.648.641	52.444.707
2.	STOCKS	4.507.075	4.982.489
3.	RECEIVABLES	19.148.070	17.351.506
4.	Cash and availability	2.657.016	633.816

5.	Prepaid expenses, of which:	555.049	720.774
	Amounts taken over a period of up to one year	194.731	261.852
	Amounts taken in a period exceeding one year	360.318	458.922
6.	TOTAL ASSETS	98.946.782	94.119.307
7.	Debts to be paid within a period of up to one year	7.845.055	17.014.332
8.	Investment subsidies	0	0
9.	Deferred revenues	13.874.667	24.636
10	Provisions	94.370	0
11.	NET ASSETS (6-7-8-9-10-5.b.)	76.772.372	76.621.417
12.	Debts to be paid within a period exceeding one year	4.080.741	4.182.040
13.	Provisions for risks and charges	$\Omega$
14.	EQUITY	73.051.949	72.898.299

- Profit and loss:

	Indicator		Achievements at:
Current issue		30.09.2016	30.09.2015
		RON	RON
1.	Net turnover	20.678.854	21.788.354
2.	TOTAL REVENUE	22.567.403	22.675.876
	Significant expense items
3.	Expenses for raw materials and consumables	11.778.796	12.876.172
4.	Energy and water expenses	2.631.785	2.928.113
5.	Expenditure on goods	486	9.573
6.	Expenses for employees	2.378.509	2.162.317
7.	Depreciation and provisions	1.571.259	1.513.857
8.	TOTAL EXPENSES	21.894.487	22.621.159
9.	GROSS PROFIT	672.916	54.717
10	LOSS	$\Omega$	$\Omega$

* We note that the financial statements III quarter 2016 have not been audited.

General Manager Catalin Marias ludlà

S.C. Sinteza S.A.
Oradea

Individual and Consolidated Financial Statements 30.09.2016

Indicator	Individual		Consolidated
	30.09.2016	31.12.2015	30.09.2016	31.12.2015
Tangible assets
Land an land design	13.620.936	13.485.777	13.620.936	13.485.777
Building	16.049.477	16.636.357	16.049.477	16.636.357
Technical installations and means of
transport	14.147.904	15.252.700	14.300.154	15.418.791
Furniture, office equipment	21.291	24.050	21.291	24.050
Tangible assets under construction	7.912.490	5.617.536	7.254.031	5.414.139
Advances for tangible assets	$\mathbf{0}$	17.924	0	17.924
Intangible assets
Development expenses	$\pmb{0}$	$\mathbf 0$	$\mathbf{0}$	$\mathbf 0$
Concessions, patents, licenses,
trademarks, similar rights and assets
and other intangible assets	639.185	637.785	639.185	637.785
Financial assets
Shares in subsidiaries and other long
term investments	257.358	257.358	174.007	174.007
Total Tangible and Intangible assets	52.648.641	51.929.487	52.059.081	51.808.830
Current assets
Stocks	4.507.075	4.597.091	4.780.759	4.936.822
Trade receivables and other receivables	19.148.070	18.631.083	17.646.682	17.141.868
Expenses in advance	555.049	535.745	555.049	535.745
Cash and cash equivalents	2.657.016	574.360	2.662.008	580.180
Assets classified as held for sale	19.430.931	19.430.931	19.430.931	19.430.931
Total Current assets	46.298.141	43.769.210	45.075.429	42.625.546
Total Assets	98.946.782	95.698.697	97.134.510	94.434.376
Equity
Capital	9.916.889	9.916.889	9.920.639	9.920.639
Share premium	$\mathbf{0}$	$\mathbf 0$	$\mathbf 0$	$\Omega$
Reserves	139.446.832	139.673.828	140.789.143	141.016.139
Result for the year	497.353	15.825	$-241.649$	$-183.921$
Earnings	$-76.808.585$	$-76.694.700$	$-79.253.745$
Other components of equity	$-540$	$-6.254$	$-540$	$-79.143.512$
				$-6.254$
Total Equity	73.051.949	72.905.588	71.213.848	71.603.091
Long term liabilities
Long term loans and other liabilities	4.080.741	4.061.108	4.080.741	4.061.107
Advance recorded revenue	$\mathbf 0$	$\mathbf{0}$	$\mathbf{0}$	0
Provisions	0	0	$\mathbf{0}$	$\mathbf{0}$
Deferred tax liabilities	0	$\mathbf{0}$	$\Omega$	$\Omega$
Total Long Term Liabilities	4.080.741	4.061.108	4.080.741	4.061.107
Current liabilities
Short term loans	3.108.293	11.317.946	3.108.293	11.317.946
Trade payables and other liabilities, including
derivatives	4.736.762	7.377.720	4.762.591	7.415.897
Advance recorded revenue	13.874.667	36.335	13.874.667
Provisions	94.370	$\mathbf{0}$	94.370	36.335 0
Liabilities classified as held for sale	$\Omega$	$\mathbf{0}$	0	$\Omega$
Total Current Liabilities
	21.814.092	18.732.001	21.839.921	18.770.178
Total Liabilities	25.894.833	22.793.109	25.920.662	22.831.285
Total Equity and Liabilities 98.946.782 95.698.697 97.134.510 94.434.376
General Manager Catalin Marias ORADE		Financial Manager Viorel Florut - Vese

S.C. Sinteza S.A. Oradea

Statement of comprehensive income, individual and consolidated
30.09.2016

	Individual		Consolidated
Indicator	30.09.2016	30.09.2015	30.09.2016	30.09.2015
Continue activities
Revenue	20.678.854	21.858.545	20.276.254	21.455.712
Other income	1.268.765	1.103.967	1.064.015	1.103.967
Stock variations	157.065	$-988.854$	157.065	$-988.854$
Total operating income	22.104.684	21.973.658	21.497.334	21.570.825
Expenditure on stocks	11.779.282	12.885.745	11.890.447	12.907.973
Expenditure on utilities	2.631.785	2.928.113	2.631.785	2.928.113
Employee benefits expense	2.378.509	2.162.317	2.733.526	2.457.255
Depreciation and amortization of fixed assets	1.476.889	1.513.857	1.490.730	1.527.698
Wins / losses on disposal of property	357.392	304.227	357.392	304.227
Adjustment of current assets	73.558	0	73.558	0
Adjustments for provisions	94.370	$\Omega$	94.370	0
Other expenses	2.367.717	1.873.237	1.999.344	1.279.916
Total operating expenses	21.159.502	21.667.496	21.271.152	21.405.182
Result operational activities	945.182	306.162	226.182	165.643
Financial income	462.719	702.218	462.719	702.218
Financial expenses	734.985	953.663	734.985	953.663
Net Financial Result	$-272.266$	$-251.445$	$-272.266$	$-251.445$
Result before tax	672.916	54.717	$-46.084$	$-85.802$
Current income tax expense	175.563	70.914	195.565	70.914
Deferred income tax expense	0	0	0	0
Income from deferred taxes
The result from continuing operations	497.353	$-16.197$	$-241.649$	$-156.716$
Total comprehensive income for the period	497.353	$-16.197$	$-241.649$	$-156.716$

General Manager Catalin Marias

Financial Manager Viorel Florut Vese

lidging

Notes to the financial statements ended 30.09.2016

The entity reported:

SC SINTEZA S.A. it is headquartered Oradea, Borsului Road No.35, Registration No. J 05/197/1991 at Commerce Register. It is a joint stock company and operates in Romania in accordance with Law No.31 / 1990 on commercial companies.

The activity of the Company is based on the production and marketing of basic organic chemical products - CAEN code 2014.

The Company's shares are listed on the Bucharest Stock Exchange, Standard category STANDARD, with the indicative STZ.

Crt. Iss.	Name	Percentage owned
	BT Asset Management SAI S.A prin FII BT Invest 1	51,8898
	Tincau Tibor	28,1346
3	Other shareholders	19,9756
	Total	100,00

On this, the company is owned by the following shareholders:

Evidence shares and shareholders is held according to the law, by SC Depozitarul Central S.A. Bucharest

Presentation of Financial Statements

The individual financial statements are presented in accordance with International Financial Reporting Standards requirements (IFRS).

Functional and presentation currency

The functional currency is the RON chosen. The financial statements are presented in RON.

Significant accounting policies

The Company organizes and manages financial accounting, according to the Accounting Law no. 82/1991, with subsequent amendments and IFRS Financial accounting provides a chronological and systematic recording. processing, publish and maintain information about the financial position. financial performance and other information related to the work.

Transactions in foreign currencies

Operations in foreign currency are recorded in RON at the exchange rate on the date of the transaction.

At the end of each month, the liabilities in foreign currency are valued at the exchange rate of the currency market, announced by the National Bank of Romania in the last working day of the month in question.

Financial instruments

The company owns the non-derivative financial assets: trade receivables, cash and cash equivalents.

Tangible assets

Tangible assets are assets that:

$\Box$ are held by a company for use in the production of goods or services, for rental to others or for administrative purposes; and

$\Box$ are used over a period longer than one year.

Production cost includes direct costs related to the production assets such as direct materials, energy consumption for technological purposes, the costs of salaries, contributions and other legal related expenses, arising directly from the construction of property and equipment, costs of site preparation costs initial delivery and handling, installation and assembly costs, testing costs for the proper functioning of the asset, professional fees and fees paid in connection with the asset, the cost of designing products and obtain necessary permits;

Subsequent expenditure on a tangible asset is recognized:

$\Box$ as an expense in the period in which they were incurred if they are considered repairs or purpose of these expenditures is to ensure continued use of the asset while maintaining the original technical parameters; or

$\Box$ as part of the asset, as subsequent expenses, if the conditions to be considered investments on fixed assets.

Depreciation of tangible assets is calculated starting with next month commissioning and until full recovery of their input.

The Company calculated and accounted for depreciation of tangible leased, rented or management location.

Land is not depreciated.

Intangible assets:

Within intangible assets include:

$\Box$ up costs:

development costs;

□ concessions, patents, licenses, trademarks, rights and similar assets, except those created by society;

$\Box$ goodwill;

diother intangible assets;

advance payments for intangible assets;

$\Box$ intangible assets in progress.

Amortization of intangible assets is allocated on a systematic basis over the best estimate of its useful life.

The method of amortization of intangible assets is a straight.

Items of stocks

Registration in inventory accounting entry shall be made after the transfer of risks and rewards.

Trade discounts granted by the supplier and included in the purchase invoice reduces the acquisition cost of goods.

In determining the cost of production using standard cost method, taking into account normal levels of materials and supplies, labor, efficiency and production capacity.

The levels considered normal consumption of material shall be reviewed within 12 months.

Revenue

Revenue represents increases in economic benefits, incurred during the year, which generated an increase in equity in forms other than those expressing consideration enterprise's new owners.

Revenues are recognized on an accrual basis.

Expenditure

Company expenses are amounts paid or payable.

Accounting expenses take the kinds of expenses as follows:

Synthetic spending accounts covering multiple items with different tax deductibility regime develops analytical, analytical so that each reflect specific content.

Debts of company

Debts evidenced by accounting company on behalf of third-party accounts. Accounting suppliers and other liabilities take into categories and each person or entity.

Personal rights shall be accounted for retaining contributions

Income tax payment as a liability should be recognized to the extent unpaid. Foreign currency debt rating and those with settlement in lei depending on the course of currencies is made at the exchange rate of the National Bank of Romania, valid on the date of each financial year.

Commercial and financial discounts

Trade discounts granted by the supplier and included in the purchase invoice adjusted downwards acquisition cost of goods.

Trade discounts to customers in order to reduce the amount of income adjusted for the transaction.

Contingent assets and liabilities

Contingent assets and liabilities is presented in the notes if the inflows are likely to arise economic benefits.

Events after the preparation of financial statements

Events after the balance sheet date are those events, favorable or unfavorable. that occur between the balance sheet date and the date the annual financial statements are authorized for issue. They are presented in the notes when considered significant.

Indicator	(RON)	(RON)
	30.09.2016	31.12.2015
Tangible assets
Land an land design	13.620.936	13.485.777
Building	16.049.477	16.636.357
Technical installations and means of
transport	14.147.904	15.252.700
Furniture, office equipment	21.291	24.050
Tangible assets under construction	7.912.490	5.617.536
Advances for tangible assets	$\Omega$	17.924
Intangible assets
Development expenses	$\mathbf{0}$	$\mathbf 0$
Concessions, patents, licenses,
trademarks, similar rights and assets
and other intangible assets	639.185	637.785
Financial assets
Shares in subsidiaries and other long
term investments	257.358	257.358
Total Tangible and Intangible assets	52.648.641	51.929.487
Current assets
Stocks	4.507.075	4.597.091
Trade receivables and other receivables	19.148.070	18.631.083
Expenses in advance	555.049	535.745
Cash and cash equivalents	2.657.016	574.360
Assets classified as held for sale	19.430.931	19.430.931
Total Current assets	46.298.141	43.769.210
Total Assets	98.946.782	95.698.697
Equity
Capital	9.916.889	9.916.889
Share premium	$\mathbf{0}$	$\Omega$
Reserves	139.446.832	139.673.828
Result for the year	497.353	15.825
Earnings	$-76.808.585$	$-76.694.700$
Other components of equity	$-540$	$-6.254$
Total Equity	73.051.949	72.905.588
Long term liabilities
Long term loans and other liabilities	4.080.741	4.061.108
Advance recorded revenue	0
Provisions	$\Omega$	$\Omega$
Deferred tax liabilities	$\Omega$
Total Long Term Liabilities	4.080.741	4.061.108
Current liabilities
Short term loans	3.108.293	11.317.946
Trade payables and other liabilities, including derivatives	4.736.762	7.377.720
Advance recorded revenue	13.874.667	36.335
Provisions	94.370
Liabilities classified as held for sale	0	U
Total Current Liabilities	21.814.092	18.732.001
Total Liabilities	25.894.833	22.793.109
Total Equity and Liabilities	98.946.782	95.698.697

Presenting economic situation - based financial balance sheet elements

Presentation of the financial situation - based on accounting profit and loss account

	(RON)	(RON)
Indicator	30.09.2016	30.09.2015
Continue activities
Revenue	20.678.854	21.858.545
Other income	1.268.765	1.103.967
Stock variations	157.065	$-988.854$
Total operating income	22.104.684	21.973.658
Expenditure on stocks	11.779.282	12.885.745
Expenditure on utilities	2.631.785	2.928.113
Employee benefits expense	2.378.509	2.162.317
Depreciation and amortization of fixed assets	1.476.889	1.513.857
Wins / losses on disposal of property	357.392	304.227
Adjustment of current assets	73.558	0
Adjustments for provisions	94.370	0
Other expenses	2.367.717	1.873.237
Total operating expenses	21.159.502	21.667.496
Result operational activities	945.182	306.162
Financial income	462.719	702.218
Financial expenses	734.985	953.663
Net Financial Result	$-272.266$	$-251.445$
Result before tax	672.916	54.717
Current income tax expense	175.563	70.914
Deferred income tax expense	0	0
Income from deferred taxes
The result from continuing operations	497.353	$-16.197$
Total comprehensive income for the period	497.353	$-16.197$

Economic and financial indicators

Current iss.	Indicator	Calculation	Result
1	Current liquidity	Current Assets / Current Liabilities	2,12
		Borrowed capital / Equity *100	5,59
$\overline{c}$	Indebtedness percentage	Equity / Capital employed $*100$	94,71
3	The rotation speed of debits - clients	The average balance of clients /Turnover* 270	55,04
4	The rotation speed of fixed assets	Turnover/Fixed assets	0,39

Events or uncertainty factors that affect or could affect the company's activity

Business is affected by the global crisis of credit and liquidity constraints that led to a low level and difficult access to funds on the capital market.

Signaled contraction in the financial market, generated in part by developments in the euro zone lately, could affect the Company's ability to access new loans and refinance those already obtained in terms and conditions related to past transactions.

Also, borrowers Company may be affected by low levels of available liquidity, which could affect their ability to repay debt when due, which will have an impact on the ability to forecast cash flows.

The Company can not predict all the events that would impact on the financial sector and any effects that would interfere with the financial statements.

The Company can not estimate the effects on the financial statements of future decreases liquidity in the financial market, the devaluation of financial assets or credit market contraction or increasing currency volatility.

However, the Company believes that, in specific market conditions that works. characterized by a strong specialization of a small number of participants and their risk assessment and management can be achieved through daily monitoring of incoming and outgoing flows of cash and by making short-term forecasts net liquidity.

The Company is not subject to externally imposed capital requirements.

General Manager Marias Catalin

Financial Manager Viorel Florut

APPENDIX 30 B

FINANCIAL AND ECONOMIC INDICATORS

Third quarter 2016

Current iss.	Indicator	Calculation	Result
	Current liquidity	Current Assets / Current Liabilities	2,12
2	Indebtedness percentage	Borrowed capital / Equity $*100$	5,59
		Equity / Capital employed $*100$	94,71
3	The rotation speed of debits - clients	The average balance of clients /Turnover* 270	55,04
$\overline{4}$	The rotation speed of fixed assets	Turnover/Fixed assets	0.39

FINANCIAL MANAGER
Viorel Florut Vese

SINTEZA S.A. Sos. Borșului no. 35 410605 ORADEA - ROMANIA

Tel: 0259 456 116 Tel: 0259 444 969 Fax: 0259 462 224 e-mail: sinteza@ sinteza. ro www.sinteza.ro

VAT Reg.No.: RO 67329 Reg.No.at Commerce Register: J.05/197/1991 BANK: EXIM BANK ORADEA IBAN EURO:RO05EXIM109000019389EU01 SWIFT CODE: EXIMROBU BANK: BANCA TRANSILVANIA ORADEA IBAN EURO:RO61BTRL00504202N98396XX SWIFT CODE: BTRL RO22XXX

OFFICIAL NEWS

SC "SINTEZA" SA ORADEA informs the investors that Q III 2016 REPORT is available for consultation at the company's headquarters in Oradea, Borșului Street No. 35, daily from 9 to 12, respectively on the company's website www.sinteza.ro starting on 11/14/2016 hour 9 am.

GENERAL MANAGER Cătălin Marias COULEXCOM