Comelf S.A. — Interim / Quarterly Report 2017

Nov 14, 2017

COMELF SA SET ELEVALUSE SET ANNUS DE SERVICE DE SERVICE DE CONTRACT DE CONTRACT DE CONTRACT DE CONTRACT DE CONTRACT DE CONTRACT DE CONTRACT DE CONTRACT DE CONTRACT DE CONTRACT DE CONTRACT DE CONTRACT DE CONTRACT DE CONTRACT DE CONT

Report for the Third Quarter of 2017

Issued on: 14.11.2017 Company Name: COMELF SA Registered Office: no. 4. Industriei str., Bistrita. Phone / fax number: 0263/234462; 0263/238092 Tax Identification Number: 568656 Unique Registration Code: J06/02/1991 Subscribed and Paid-up Share Capital: 13.036.325.34 lei Regulated Market on which the securities issued are transacted: B.V.B. (Bucharest Stock Exchange)

Main indicators, thousand lei	Quarter III-2017	Quarter III-2016	Δ%
Total operating revenues, of which:	138.499	137.648	0,61
Revenues from Manufacturing Contracts	128.699	127.290	1.10
Profit/(Loss) for the interval	3.488	4.409	(20, 89)
EBITDA	12.856	13.964	(7, 94)
Interest-bearing loans	37.657	40.678	(7, 43)

*The financial figures are not audited and represent the individual results for Comelf SA, filed according to International Financial Reporting Standards (IFRS);

• * The Operating Revenues of COMELF S.A. have amounted to 138 million LEI in the Q3/2017, similar to those achieved in Q3/2016.
• * The Revenues generated by our core activity have increased in Q3/2017 when compared to Q3/2016, based on the product structure for products sold in the first 9 months of 2017, with a higher average sale price/ton, considering the increased complexity of sold products.
• * The Profit for this interval has been lower by 20,89% in Q3/2017 when compared to the similar period of previous year, the main factors that have had a negative influence on the profit have been:

Raw-material price increase (averaging 100 EUR/ton) only partially compensated by the increase of sale-prices; j)

Lack of skilled personnel on the local labour market as well as migration of personnel generate additional costs ii) due to low productivity of newly employed personnel, poorly skilled. Moreover, the evolution of minimum wages as well as the increasing wages in the public sector has put a pressure on the wage-expenses for the private companies creating a need to increase wages in order to keep the employees.

Critical Events for the first 9 months of 2017:

• * On March 10^th, 2017 the Extraordinary General Meeting of the Shareholders has approved the decrease of the Registered Capital by 543.179,86 LEI, by cancelling a number of 936.517 of its own shares available to it, thus the number of Registered Shares has been cut down to 22.476.423 shares, corresponding to a value of 13.036.325,36 LEI:
• ❖ On July 17^th, 2017 Depozitarul Central has recorded in the Register of the issuer, COMELF SA, the decrease of the Registered Capital according to the EGMS Decision of March 10^th, 2017;
• ◆ On October 25^th, 2017 the Managing Board of COMELF SA has appointed Mr. Cenusa Gheorghe as General Manager of the Company:

The Report for the Third Quarter of 2017 may be viewed on our website www.comelf.ro/Informatii la zi/, as well as in the link below...

GRUP UZINSIDER

Formertidial No.J0902/31.01.91
pancar (Lei) RO 12INGB0024000040598911
(Euro) RO 58INGB0024000040590711 hancer Deschise la: ING BANK BISTRITA
Societate cotata la Bursa de Valori Bucuresti

COMELF SA Report for Third Quarter

According to the Regulation of the National Commission for Transferable Securities No. 1/2006 Appendix no. 30B

Issued on: November 14th, 2017

Company Name: COMELF SA

Registered office: no. 4, Industriei street, Bistrita

Phone / Fax Number:

Tax Identification Number: 568656

Unique Registration Code: J06/2/1991

Subscribed and paid-up share capital:13.036.325,34 lei

Regulated market on which the securities issued are transacted: Bucharest Stock Exchange

Main characteristics of the shares issued by the company:

REGISTERED SHARES in the amount of 22,476,423 with a value of 0,58 lei/share. $\bullet$

1. Summary of the critical events that have occurred during the relevant time interval and their effects on the financial position of the entity issuing the shares and its subsidiaries.

2. General outline of the financial position and performance of the entity issuing the shares and its subsidiaries for the relevant time interval.

B. Economic and financial indicators for the third quarter of 2017

Indicator Designation	Calculation method	30.09.2017	30.09.2016
Current ratio (general)	Current	1,06	1,09
	assets/Current
	liabilities
	(recommended value
	for this indicator is
	approximately 2)
Current liquidity (general) as of 30.09.2017 amounts to 1,06 and represents the degree of cover for
current liabilities through current assets owned by the company.
Leverage	Borrowed Capital	7,11%	11.19%
	/Employed Capital
The Company's Leverage amounts to 7,11% and refers to the ratio between the borrowed capital $-$

liabilities over 1 year old, and the employed capital;

GRUP UZINSIDER

$\n COMELI \n Segistru convertului No. J/06/02/31.01.91\n Cont baroar' (Eu) RO 12110680024000040598911\n Deschise la. IAG BAVK BISTRITA\n Societate cotata la Burasa de Valori Bucuresti$

ر
د مدينه جمهور

Days sales outstanding-customers	Average Customer Balance/Turnover X 270	the second control of the second control of the second control of the second control of the second control of
Turnover speed for fixed assets	Turnover/Fixed Assets the control of the control of the control of the	1.38	1.33

General Manager,

Ing. Cenusa Gheorghe

Financial Director,

Ec. Dana Tatar

STATEMENT OF FINANCIAL SITUATION on 30^th September 2017

	In Lei
Nr.		31.12.2016	30.09.2017
Crt.	DENUMIREA POZITIEI	IFRS	IFRS
	1 Actives
	2 Intangible assets	906.950	551.439
	3 Tangible assets	102.557.151	97.306.562
	4 Financial assets available for sale	196.109	196.109
	5 Total Fixed assets	103.660.210	98.054.110
	6 Advance payments for tangible assets	148.200	365.788
	7 Stocks	8.826.250	9.457.956
	8 Account receivables from construction contracts	62.351.596	57.407.012
	9 Commercial account receivables and of other types	1.951.560	2.310.331
	10 Current tax account receivables	$\tilde{\phantom{a}}$
	11 Cash and cash equivalents	5.335.529	7.201.660
	12 Total Current Actives	78.613.135	76.742.747
	13 Total Actives 그 일 시대	182.273.345	174.796.857
	14 Capital	13.579.505	13.036.325
	15 Adjustments of the capital	8.812.271	8.812.271
	16 Other elements of equity	(3.081.039)	(3.081.039)
	17 Reserves	58.683.195	55.070.526
	18 Repurchased own shares	(2.528.596)
	19 Reported result	(7.617.345)	(5.941.487)
	20 Year result	4.014.685	3.488.183
	21 Total shareholder's equity	71.862.676	71.384.779
	22 Debts
	23 Long term bank loans	4.350.646	1.191.154
	24 Debts for postponed tax	10.932.280	10.622.325
	25 Provisions for risks and expenses	6.818.830	6.765.721
	26 Debts for postponed income	8.341.692	5.952.541
	27 Total long term debts	30.443.448	24.531.741
	28 Overdrafts	31.787.700	32.193.700
	29 The current share for the long term loan	4.272.642	4.272.642
	30 Commercial and other types of debts	37.861.532	35.832.387
	31 Provisions for risks and expenses	2.042.482	1.750.480
	32 Debts for postponed income	4.002.865	4.831.128
	33 Total current debts	79.967.221	78.880.337
	34 Total Debts	110.410.669	103.412.078
	35 Total shareholder's equity and debts	182.273.345	174.796.857

$\overline{a}$

$\ddot{\phantom{0}}$

PROFIT OR LOSS ACCOUNT STATEMENT AND OTHER ELEMENTS OF GLOBAL INCOMI

Nr.	DENUMIREA INDICATORILOR	30.09.2016	30.09.2017
crt.
	1 Income from construction contracts	127.290.075	128.698.892
	2 Income from selling goods	3.869.001	2.951.716
	3 Other income connected to turnover	4.002.071	4.587.176
4	Other income	2.486.811	2.261.084
	5 Total operating income	137.647.958	138.498.868
	of that: turnover	138.732.105	135.564.759
	6 Raw materials and consumables expenses	55.660.508	59.132.523
	Goods expenses	3.783.360	2.785.318
	8 Staff expenses	38.830.751	40.913.756
	9 Rent expenses	997.183	627.487
	10 Expenses with premiums asigurarte	626.265	285.053
	11 Transport costs	7.006.169	5.921.329
	12 Amortization and depreciation of fixed assets costs	7.663.142	7.817.884
	13 Adjustments for depreciation of current assets, net	(44.478)	(10.985)
	14 Provisions costs for risks and expenses, net	(255.037)	(345.111)
15	Other operating expenses	16.824.421	15.988.224
	16 Total expenses	131.092.284	133.115.478
	17 Profit from exioatation	6.555.674	5.383.390
	18 Financial income	2.262.512	2.246.675
	19 Financial expenses	(3.583.076)	(3.632.739)
	20 Financial loss	(1.320.564)	(1.386.064)
	21 Total revenue	139.910.470	140.745.543
	22 Total expenses	134.675.360	136.748.217
	23 Profit before tax profit	5.235.110	3.997.326
	24 Tax profit	826.438	509.143
	25 Net income	4.408.672	3.488.183
	26 Other elements of global results
	27 Revaluation of tangible assets
	28 Other comprehensive income, after tax
	29 Total profit of loss account and other elements of global result	4.408.672	3.488.183
	30 Earnings per share
	31 Earnings per basic share	0,19	0,16
	32 Diluted earnings per share	0,19	0,16