Santierul Naval Orsova S.A.

Quarterly Report • May 14, 2019

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 Codul LEI (Legal Entity Identifier): 254900UXAJ8TPIKLXG79 IBAN code: RO96RNCB0181022634120001- B.C.R. Orşova IBAN code: RO59BRDE260SV03176142600- B.R.D. Orşova

TRIMESTRAL REPORT CORRESPONDING TO THE Ist TRIMESTER OF 2019, IN COMPLIANCE WITH THE LAW NO. 24/2017AND TO THE ASF REGULATION NO. 5/2018 concerning the issuers of financial instruments and market operations

DATE OF THE REPORT: 10.05.2019 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 SHARE CAPITAL ISSUED AND PAID UP: 28.557.297,5 LEI REGULATED MARKET WHERE THE REAL ESTATE VALUES ISSUED ARE TRADED: STOCK EXCHANGE BUCHAREST

A. FINANCIAL AND ECONOMICAL INDICATORS ON THE DATE OF 31st of March 2019 (APPENDIX NO. 13 TO THE ASF REGULATION no. 5/2018)

DESCRIPTION OF THE	CALCULATION	RESULT
INDICATOR	MANNER
1. Indicator of current cash	Current assets	6,36
deposit)	Current debts
2.Indicator of the degree of	Borrowed capital*100	0 (zero)
indebtness2)	Own capital
3. Rotation speed of the debits -	Average balance	62 DAYS
clients3)	clients*90
	Turnover
4. Rotation speed of the fixed	Turnover	0,39
assets4)	Fixed assets

NOTE:

• 1) Offers guarantees for the coverage of the current debts from the current assets. The recommended acceptable value is approximately 2.
• 2) Expresses the effectiveness of the management of credit rosk, indicating potential financing issues, of cash-deposit with influences in the fulfillment of the undertaken committments. S.C. Șantierul Naval Orșova has no crediting contract exceeding 1 year, and, subsequently, this indicator is 0 (zero)
• 3) It expresses the effectivenes of the company in collecting their account receivables, namely the number of days until the date when the debtors pay their debts towards the company
• 4) It expresses the effectiveness of the fixed assets management, by examining the turnover generated by a certain amount of fixed assets.

B. OTHER INFORMATION

During the trimester of 2019, the operational incomes registered an increase both from the stipulations in the BVC and also from the period corresponding to last year:

- stipulated in the BVC Ist trimester 2019	13.700.000 lei
- realized in the Ist trimester of 2019	15.391.291 lei
- realized on the Ist trimester of 2018	8.735.987 lei

Consequently these have increased by 12,3% from the stipulations in the BVC and by 76,2% from the period corresponding to the year 2018.

During this period of time a number of 2 tank ships 110 m and 85 m length, respectively, were completed and delivered to the external clients – from the main head-office in Orșova, and the 5 existing barges at Agigea Branch were completely rented during this period, to an external client (in Turkey), being functional after repair/modernization works were carried out in the past years.

The accounting report form on 31.03.2019, namely: 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 31.03.2019 have not been audited by an external independent financial auditor.
• In comparison to the provisions under BVC on the Ist trimester of 2019, the situation of the result is the following:

❖Result from operation:

o Stipulated in the BVC 400.000 lei

o Realized	1.247.719 lei
❖Financial result:
o Stipulated in the BVC	0 lei
o Realized	474.792 lei
❖Gross result of the Ist trimester 2019:
o Stipulated in the BVC	400.000 lei

o Realized	1.722.511 lei

During the similar period from the year 2018, the company realized a gross profit of 133.080 lei.

The company estimates to further preserve the positive trend characteristic to the first trimester of the year 2019, considering the completion and delivery schedules of the river ships built at the headquarters in Orșova, yet also the renting perspective of the hydro-flap barges from Agigea.

On 31.03.2019, the company did not have any bank credits contracted, and the number and the cash equivalents were amounting to 7.367.272 lei.

The company did not have any remaining obligations to the suppliers, to the state budget, to its employees or any other creditors, all of them having been paid up within the legal/contractual due date.

The expenses for investment, over the Ist trimester of 2019 amount 646.664 lei, from 1.100.000 lei stipulated in the BVC (index of accomplishment: 58,8%). During the period corresponding to the last year, such expenses were amounting to 1.116.273 lei.

During the month of April 2019, on the occasion of the general ordinary meeting of the shareholders, the mandates of the old shareholders were renewed, and the present general manager had his mandate extended for one year more.

STATEMENT OF FINANCIAL POSITION AT 31 MARCH 2019

Reference		Row	31.03.2019	01.01.2019
			RON	RON
	Assets
	Fixed assets
IAS 1.54(a)	Tangible assets	01	38.553.363	39.018.621
	Freehold land and land improvements	02	1.201.941	1.201.941
	Buildings	03	20.048.363	20.439.782
	Plant and machinery. motor vehicles	04	16.908.682	17.303.930
	Fixtures and fittings […]	05	70.249	72.968
	Tangible assets in progress	06	324.128	0
IAS 1.54(c)	Intangible assets	07	3.194	3.933
	Other intangible assets	08	3.194	3.933
IAS 1.54(h)	Trade receivables and other receivables	09	101.404	101.327
IAS 1.54(o). 56	Deferred tax assets	10	54.761	61.137
IAS 1.60	Total fixed assets	11	38.712.722	39.185.018
IAS 1.54 (g)	Inventories	12	47.806.476	47.861.022
IAS 1.54(h)	Trade receivables and other receivables	13	9.767.188	7.379.937
IAS 1.55	Accrued expenses	14	251.264	55.869
IAS 1.54(d)	Short term investments	15	8.513.886	8.470.227
IAS 1.54(i)	Cash and cash equivalents	16	7.367.272	6.638.636
IFRS 5.38-40	Non-current assets held for sale	17	68.853	68.853
IAS 1.60	Total Current Assets	18	73.774.939	70.474.544
	Total Assets	19	112.487.661	109.659.562
	Equity
IAS 1.54(r). 78(e)	Share capital	20	28.557.298	28.557.928
IAS 1.55. 78(e)	Share premium	21	8.862.843	8.862.843
IAS 1.54(r). 78(e)	Reserves	22	53.140.821	53.054.695
	Result for the period	23	1.400.194	2.852.126
IAS 1.55. 78(e)	Retained earnings	24	9.026.707	6.353.858

STATEMENT OF FINANCIAL POSITION AT 31 MARCH 2019 (continued)
--------------------------------------------------------------	--	--

		Row	31.03.2019	01.01.2019
Reference			RON	RON
	Profit appropriation	25	(86.126)	(179.278)
	Other elements of equity	26	(4.454.721)	(4.498.960)
	Total equity	27	96.447.016	95.002.582
	Liabilities
	Long-term liabilities
IAS 1.54(o). 56	Deferred tax liabilities	28	4.454.721	4.498.960
IAS 1.60	Total long-term liabilities	29	4.454.721	4.498.960
	Current liabilities
IAS 1.54(k)	Trade payables and other debts. including derivatives	30	11.075.864	9.618.869
	Deferred income	31	2.020	2.277
IAS 1.54(l)	Provisions	32	508.040	536.874
IAS 1.60	Total current liabilities	33	11.585.924	10.158.020
	Total Liabilities	34	16.040.645	14.656.980
	Total Equity and Liabilities	35	112.487.661	109.659.562

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME AT 31 MARCH 2019

Reference		Row	31.03.2019	31.03.2018
			RON	RON
	Continuing operations
IAS 1. 82(a) IAS 1.99.103	Income	01	13.841.348	7.171.383
	Other income	02	1.549.943	1.564.604
	Total Operational Income	03	15.391.291	8.735.987
	Expenses related to inventories	04	(5.077.577)	(2.814.240)
	Utility expenses	05	(415.966)	(282.692)
	Employee benefits expenses	06	(4.977.033)	(3.414.565)
	Depreciation and amortization expenses	07	(1.109.272)	(742.638)
	Increase/(Decrease) of receivables allowances and inventory write-down	08	0	69.896
	Increase/(Decrease) of provision expenses	09	28.834	516.305
IAS 1.99. 103	Other expenses	10	(2.592.558)	(1.844.036)
	Total Operational expenses	11	(14.143.572)	(8.511.970)
	The result of operational activities	12	1.247.719	224.017
	Financial income	13	535.885	77.146
IAS 1.82(b)	Financial expenses	14	(61.093)	(168.083)
	Net financial result	15	474.792	(90.937)
IAS 1.85	Result before taxation	16	1.722.511	133.080
	Current income tax expenses	17	(315.941)	0
	Deferred income tax expenses	18	(6.376)	(80.671)
	Deferred income tax income	19	0	272
IAS 1.85	Result for continuing operations	20	1.400.194	52.681
IAS 1.82(f)	Result for the period	21	1.400.194	52.681
	Other comprehensive income
IAS 1.82(g)	Reevaluation of tangible assets	22	0	(90.854)
IAS 1.85	Other comprehensive income after taxation	23	0	(90.854)

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME AT 31 MARCH 2019 (continued)

Reference
		Row	31.03.2019	31.03.2018
			RON	RON
IAS 1.82 (i)	Total comprehensive income for the period	24	1.400.194	(38.173)
	Attributable profit
IAS 1.83(b)(ii)	Shareholders	25	1.400.194	52.681
	Profit for the period	26	1.400.194	52.681
	Total attributable comprehensive income
IAS 1.83(b)(ii)	Shareholders	27	1.400.194	(38.173)
	Earnings per share
IAS 33.66	Basic earnings per share	28	0.12	0.0
IAS 33.66	Diluted earnings per share	29	0.12	0.0
	Continuing operations
IAS 33.66	Basic earnings per share	30	0.12	0.0
IAS 33.66	Diluted earnings per share	31	0.12	0.0

Administrator. Dr. Ec. Mihai Fercală

Prepared by. Ec. Gheorghe Caraiman