Mecanica Ceahlau

Earnings Release • Feb 14, 2018

MECANICA CEAHLAU S.A

INDIVIDUAL FINANCIAL STATEMENTS

PRELIMINARY

FOR THE FISCAL YEAR ENDED AT 31 DECEMBER 2017

PREPARED IN CONFORMITY WITH THE ORDER 2844/2016 APPROVING THE ACCOUNTINGS REGULATIONS COMPLYING WITH THE INTERNATIONAL FINANCIAL REPORTING STANDARDS

The Preliminary Individual Financial Statements at 31 December 2017 are currently subject to audit.

Table of Contents:

PRELIMINARY INDIVIDUAL FINANCIAL STATEMENTS at 31 December 2017 are currently subject to audit

INDIVIDUAL STATUS OF FINANCIAL POSITION	2-4
INDIVIDUAL STATUS OF GLOBAL RESULT	5-6
INDIVIDUAL STATUS OF EQUITY CHANGES	7
INDIVIDUAL STATUS OF TREASURY FLOWS	8

INDIVIDUAL STATUS OF FINANCIAL POSITION

	31.12.2017	01.01.2017
Assets
Fixed assets
Tangible assets	23.817.119	21.778.510
Land and land development activities	12.250.463	12.082.199
Constructions	5.368.228	5.547.881
Technical installations and means of transport	5.820.033	4.116.666
Furniture, office equipment […]	21.524	31.765
Tangible assets pending	356.871	-
Intangible assets	499.318	571.122
Other intangible assets	110.609	122.464
Concessions, brevets, licences, trade mark, similar rights and assets	372.023	448.658
Intangible assets in progress	16.686	-
Real estate investments	535.400	465.631
Total Fixed assets	24.851.837	22.815.263
Current assets
Stocks	14.850.205	14.789.473
Commercial debts and other debts	15.036.459	12.994.022
Accrued expenses	169.342	41.779
Financial assets at just value (fund units)	4.091.943	3.046.521
Cash and cash equivalent	4.819.727	5.003.004
Total Current assets	38.967.676	35.874.799
Total Assets	63.819.513	58.690.062
Equity
Capital social	23.990.846	23.990.846
Reserves	19.788.484	19.095.975
Result of the exercise	111.583	2.105.150
Result carried forward	9.220.955	9.117.566
Other equity elements	(2.681.567)	(2.826.120)
Total Equity	50.430.301	51.483.417

INDIVIDUAL STATUS OF FINANCIAL POSITION

At 31 December	31.12.2017	01.01.2017
Liabilities
Non-current liabilities
Long-term loans Pension Provision	1.600.671 296.913	253,913 226.364
Deferred tax liabilities	1.960.972	2.353.763
Total Non-current liabilities	3.858.556	2,834.040
Current liabilities
Short-term loans	454.858	117.557
Commercial liabilities and other liabilities	6.386.253	3.675.390
Deferred income	0	2.277
Provisions	2.689.545	577.381
Total Current liabilities	9.530.656	4.372.605
Total Liabilities	13.389.213	7.206.645
Total Equity and Liabilities	63.819.513	58.690.062

The individual financial statements were approved by the Board of Directors on 14.02.2017 and they were signed on behalf of the Board by:

Molesag Sorin Marian Gabriela

General Director Chief Financial Officer

INDIVIDUAL STATUS OF GLOBAL RESULT

For the financial year ended at 31 December	2017	2016
Continuous activities
Income	45.915.933	37.324.149
Other income	50.303	576.128
Total Operational Income	45.966.236	37.900.277
Expenses related to inventories (cost of sold items ) Utilities	(22.723.606) (657.379) (7.005.905)	(16.907.521) (651.217)
Salaries, contributions and other benefits Amortization and depreciation of assets Profits / Losses from assets assignment	(1.916.868) 0	(6.946.930) (1.658.224) 0
Profits / Losses from real estate investments	0	0
Adjustment of current assets value	(363.876)	128.902
Adjustment of Provisions	(2.151.881)	164.836
Other expenses	(10.301.168)	(8.598.556)
Total Operational Expenses	(45.120.683)	(34.468.710)
Result of Operational Activities	845.553	3.431.567
Financial Income	162.984	156.951
Financial expenses	(857.068)	(1.049.964)
Net Financial Result	(694.084)	(893.013)
Result before taxation	151.469	2.538.555
Current income tax expenses Deferred income tax expenses Profit related to Deferred income tax	(415.051) (281.687) 656.852	(366.853) (238.987) 173.436
Result from Continuous activities	111.583	2.105.150

INDIVIDUAL STATUS OF GLOBAL RESULT

For the financial year ended at 31 December	2017	2016
Other elements of the Global result Reserves from increase re-evaluation Deferred equity tax Reserves from decrease re-evaluation	(111.507)	- (111.506) -
Other elements of the Global result, after taxation	(111.507)	(111.506)
Total global result of the period	76	1.993.644
Distributable net profit	111.583	2.105.150
Result per basic action	0,0005	0,0088

The individual financial statements were approved by the Board of Directors on 14.02.2018 and they were signed on behalf of the Board by:

Molesag Sorin Marian Gabriela

General Director Chief Financial Officer

INDIVIDUAL STATUS OF EQUITY CHANGES

Distributable to Company Shareholders

	Registered Capital	Legal Reserves	Reserves from re evaluation	Other reserves	Carried forward result	Current result	Other equity elements	Total equity
Sold at 1 January 2017	23.990.846	2.226.856	12.596.817	4.272.302	9.117.566	2.105.150	(2.826.120)	51.483.417
Resulting transfer year 2016
to the carried forward result Resulting transfer carried forward	-	-	-	-	2.105.150	(2.105.150)	-	-
to the legal reserve	-	-	-	-	-	-	-	-
Resulting transfer carried forward 2016
to other reserves Transfer of legal reserves from profit to	-	-	-	-	-	-	-	-
other reserves	-	-	-	802.671	(802.671)	-	-	-
Net Loss / Profit of the fiscal year	-	-	-	-	-	111.583	-	111.583
Legal Reserve 2016	-	-	-	-	(126.928)	-	126.928	-
Other elements of the Global result
The reported result from the correction
of accounting errors					(6.773)			(6.773)
Equity deferred tax Transfer to the result carried forward	-	-	-	-	-	-	17,625	17,625
of the surplus re-evaluation reserves	-	-	(110.162)	-	110.162	-	-	-
Dividends distributed to Shareholders	-	-		-	(1.175.551)	-	-	(1.175.551)
Board Participation to profit	-	-	-	-	-	-	-	-
Sold At 31 December 2017	23.990.846	2.226.856	12.486.655	5.074.973	9.220.955	111.583	(2.681.567)	50.430.301

The individual financial statements were approved by the Board of Directors on 14.02.2018 and they were signed on behalf of the Board by:

Molesag Sorin Marian Gabriela

INDIVIDUAL STATUS OF TREASURY FLOWS

For the financial year ended at 31 December	2017	2016
Cash flow from operating activities		9
Cash flow collected from clients	47.323.130	43.778.579
Payments to suppliers and employees	(42.314.824)	(39.274.618)
Cash generated from operating activities	5.008.306	4.503.961
Paid interests	-	(4.843)
Paid tax on profit	(410.953)	(240.743)
Net cash flow from operating activities	4.597.353	4.258.375
Cash flow from investment activities
Collected interests	8.322	2.307
Paid dividends	(1.126.455)	(1.147.866)
Acquisition of tangible assets	(4.233.910)	(249.006)
Fund units redemption	-	-
Short-term investments	(1.000.000)	-
Net cash flow from investments	(6.352.043)	1.394.585
Cash flow from funding activities
Receipts from long term loans / short	1.917.789	-
Repayment of loans	(158.547)	-
Payment of financial leasing debts	(157.454)	(176.344)
Net cash flow (used in) funding activities	1.601.788	(176.344)
Net increase (Decrease) of cash and cash equivalent	(152.902)	2.687.446
Cash and cash equivalent at 1 January	5.003.004	2.343.920
The effect of exchange rate variation on cash flow	(30.375)	(28.362)
Cash and cash equivalent at 31 December	4.819.727	5.003.004

The individual financial statements were approved by the Board of Directors on 14.02.2018 and they were signed on behalf of the Board by:

Molesag Sorin Marian Gabriela