Sinteza S.A.

Quarterly Report • Nov 14, 2017

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

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

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

Report Data:	14/11/2017
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

This Quarterly Report includes:

• 1) The financial statements on 30/09/2017, prepared in accordance with International Financial Reporting Standards (IFRS).
• Statement of financial position at 30/09/2017
• Statement of Comprehensive Income on 30/09/2017
• 2) Notes to the financial statements ended 30/09/2017
• 3) Economic and financial indicators specified in Appendix 30 B of Regulation No.1 / 2006.

* Note that third quarter 2017 financial statements were not audited.

General Manager Catalin Marias nar

1. Financial statements at 30.09.2017:

Individual Financial Statements
30.09.2017

	Individual		Consolidated
Indicator	30.09.2017	31.12.2016	30.09.2017	31.12.2016
Tangible assets
Land an land design	13.971.880	13.971.880	13.971.880	13.971.880
Building	15.594.378	15.951.950	15.594.378	15.951.950
Technical installations and means of
transport	14.971.285	16.237.119	15.105.081	16.384.756
Furniture, office equipment	17.031	18.837	17.031	18.837
Tangible assets under construction	6.388.425	5.527.632	6.111.210	4.621.871
Advances for tangible assets	0	$\mathbf{0}$	$\mathbf{0}$	C
Intangible assets
Development expenses	0	0	$\mathbf 0$	C
Concessions, patents, licenses,
trademarks, similar rights and assets
and other intangible assets	567.486	610.506	567.486	610.506
Financial assets
Shares in subsidiaries and other long term investments
Total Tangible and Intangible assets	115.934	110.332	32.583 51.399.649	26.981 51.586.781
	51.626.419	52.428.256
Current assets
Stocks	5.415.897	6.183.475	5.688.799	6.457.159
Trade receivables and other receivables	7.385.325	11.773.419	6.012.559	10.365.708
Expenses in advance	494.561	434.940	494.561	434.940
Cash and cash equivalents	36.470	3.101.497	37.178	3.108.976
Assets classified as held for sale	4.164.340	4.164.340	4.164.340	4.164.340
Total Current assets	17.496.593	25.657.671	16.397.437	24.531.123
Total Assets	69.123.012	78.085.927	67.797.086	76.117.904
Equity
Capital	9.916.889	9.916.889	9.920.639	9.920.639
Share premium	$\Omega$	$\Omega$	$\Omega$
Reserves	55.531.330	55.531.330	56.973.958	56.875.357
Result for the year	$-1.862.148$	2.760.412	$-2.160.171$	1.887.468
Earnings	$-5.836.443$	$-2.737.739$	$-8.281.603$	$-5.182.899$
Other components of equity	$-540$	$-1.352.345$	$-540$	$-1.354.061$
Total Equity	57.749.088	64.118.547	56.452.283	62.146.504
Long term liabilities
Long term loans and other liabilities	2.899.310	3.780.741	2.899.310	3.780.741
Advance recorded revenue	$\mathbf{0}$	$\mathbf{0}$	$\Omega$	$\mathbf 0$
Provisions	0	$\mathbf{0}$	$\mathbf{0}$	$\mathbf{0}$
Deferred tax liabilities	$\mathbf 0$	$\mathbf{0}$	$\mathbf{0}$	$\mathbf 0$
Total Long Term Liabilities	2.899.310	3.780.741	2.899.310	3.780.741
Current liabilities
Short term loans	3.219.370	220.644	3.219.370	220.644
Trade payables and other liabilities, including
derivatives	5.199.142	9.948.886	5.170.021	9.952.906
Advance recorded revenue	56.102	17.109	56.102	17.109
Provisions	0	$\Omega$	$\mathbf{0}$	0
Liabilities classified as held for sale	0	$\mathbf{0}$	$\Omega$	$\mathbf{0}$
Total Current Liabilities	8.474.614	10.186.639	8.445.493	10.190.659
Total Liabilities
	11.373.924	13.967.380	11.344.803	13.971.400
Total Equity and Liabilities $C^{\wedge}$	69.123.012	78.085.927	67.797.086	76.117.904

General Manager Catalin Marias

Moin D

Financial Manager Viorel Florut Vese

Statement of comprehensive income, individual and consolidated
30.09.2017

	Individual		Consolidated
Indicator	30.09.2017	30.09.2016	30.09.2017	30.09.2016
Continue activities
Revenue	19.339.543	20.678.854	18.934.543	20.276.254
Other income	84.293	1.268.765	84.293	1.064.015
Stock variations	$-242.756$	157.065	$-242.756$	157.065
Total operating income	19.181.080	22.104.684	18.776.080	21.497.334
Expenditure on stocks	11.379.147	11.779.282	11.463.919	11.890.447
Expenditure on utilities	2.088.826	2.631.785	2.088.826	2.631.785
Employee benefits expense Depreciation and amortization of fixed	2.784.243	2.378.509	3.168.076	2.733.526
assets	1.667.510	1.476.889	1.681.351	1.490.730
Wins / losses on disposal of property	75.183	357.392	75.183	357.392
Adjustment of current assets	$\mathbf{0}$	73.558	$\mathbf{0}$	73.558
Adjustments for provisions	$\Omega$	94.370	0	94.370
Other expenses	2.859.713	2.367.717	2.270.290	1.999.344
Total operating expenses	20.854.622	21.159.502	20.747.645	21.271.152
Result operational activities	$-1.673.542$	945.182	$-1.971.565$	226.182
Financial income	265.522	462.719	265.522	462.719
Financial expenses	454.128	734.985	454.128	734.985
Net Financial Result	$-188.606$	$-272.266$	$-188.606$	$-272.266$
Result before tax	$-1.862.148$	672.916	$-2.160.171$	$-46.084$
Current income tax expense	0	175.563	$\mathbf{0}$	195.565
Deferred income tax expense	$\mathbf 0$	$\mathbf{0}$	$\sigma$	0
Income from deferred taxes The result from continuing operations	$-1.862.148$	497.353	$-2.160.171$	$-241.649$
Total comprehensive income for the period	$-1.862.148$	497.353	$-2,160.171$	$-241.649$

General Manager
Catalin Marias Loughs Financial Manager
Viorel Florut Vese

$CO_A$ RAD

2. Notes to the financial statements ended 30/09/2017

The entity reported:

SC SINTEZA S.A. it is headquartered Oradea, Borsului Road No.35, Registration No. J 05/197/1991 T. 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, with the indicative STZ.

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

Crt. Iss.	Name	Percentage owned
	F.I.I. BT Invest 1 administered by BT Asset Management S.A.	51,8898
	Tincau Tibor	28,1346
	Other shareholders	19,9756
	Total	100,00

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 leu 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

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:

goodwill:

other intangible assets:

advance payments for intangible assets:

□ 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.

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.

3. Economic and financial indicators

Current iss.	Indicator	Calculation	Result
	Current liquidity	Current Assets / Current Liabilities	2,06
$\mathfrak{p}$	Indebtedness percentage	Borrowed capital / Equity 100 Equity / Capital employed $100$	5,02 95,22
3	The rotation speed of debits - clients	The average balance of clients /Turnover* 90	48,16
4	The rotation speed of fixed assets	Turnover/Fixed assets	0.37

General Manager
Marias Catatin hair ORADE

Financial Manager
Viorel Florut Vese