Teraplast SA — M&A Activity 2017

Oct 12, 2017

AD HOC REPORT

In accordance with Law no. 24/2017 and NSC Regulation no. 1/2006

Date of report: 12.10.2017 Name of issuer: TERAPLAST S.A. Headquarters: Teraplast Industrial Park, DN 15A, KM 45+500, Bistrita-Nasaud County Telephone/Fax: 0263/238.202/0263/231.221 Trade Register No: J06/735/1992 Sole registration number at the Trade Register Office: RO3094980 Share capital: 85.691.097 lei Regulated market on which the issued shares are traded: Bucharest Stock Exchange

Major events to be reported

• a) Changes in the control of the company – N/A
• b) Significant acquisitions or sales of assets – N/A
• c) Bankruptcy – N/A
• d) Transactions as listed in art. 82 of Law 24/2017 – N/A
• e) Other events

Teraplast announces the completion of the acquisition of the share stock representing 50% of the Politub shares, owned by the French company, Socotub, by recording on 11th October 2017 in the shareholder records of the company Politub S.A. the ownership transfer of shares. Thus, 99.99% of Politub's share capital is currently owned by Teraplast, and 00.01% by Terasteel S.A. Before the acquisition, Teraplast owned 50% of Politub SA's shares, and after completing the acquisition of the remaining shares, the Teraplast Group has gained exclusive control over Politub SA.

Mirela Pop, Teraplast CEO: "The integral Politub takeover is an important step in the development of Teraplast Group, in respect of consolidating our position as key player on the construction and installation market. With this acquisition, our portfolio is completed by complementary products, thus enabling us to offer diversified solutions to our partners. We believe that by developing this product range, Teraplast Group will enter a new stage of evolution."

Teraplast Group has an annual turnover of over 400 million RON (lei). The Group's product portfolio is organised into six business lines: Installations & improvements, Joinery profiles, Granules, Thermal

TERAPLAST S.A. Parc Industrial TeraPlast DN 15A, km 45+500, Cod. 427298, Jud. Bistriţa-Năsăud Tel: 0374 46 15 29; Fax: 0263 23 12 21 CUI: RO3094980; J6/735/1992 Capital social subscris și vărsat: 85.691.097 lei www.teraplast.ro

insulation panels, Zinc coated metal structures and Thermal insulation joinery, occupying top ranking positions on a large part of these markets. The parent company Teraplast is the leader of outdoor sewage and granules market segments, and second player on indoor sewage market segment. Subsidiary TeraSteel is second player on sandwich panel market segment and the leader of zinc coated metal structures market.

Details of Politub SA:

The main Politub's business include the production of high-density polyethylene pipes and medium-density polyethylene pipes designed for water and natural gas transport and distribution, but also for telecommunications, sewage and irrigation.

Politub produces PE high-density and medium-density PE tubes and pipes designed for water and gas transport and distribution but also for telecommunications, sewage and irrigation. Politub also produces fittings from PE pipe segments and structured wall polyethylene tubes (corrugated pipes).

The polyethylene pipe factory (Politub) has an annual production capacity of over 10,000 tonnes and is located in Teraplast Bistrita Industrial Park.

Details of Teraplast Group:

With 120 years of tradition, Grupul Teraplast is currently the leading PVC manufacturer in Romania and one of the main manufacturers of materials for the construction and installation market. The Group's product portfolio is organised on six lines of business: Installations & improvements, Joinery profiles, Granules, Thermal insulation panels, Zinc coated metal structures and Thermal insulation joinery.

The manufacturing facilities of Grup companies are located at Teraplast Industrial Park, spreading over an area of over 200000 m² , outside the build-up area of Bistrita municipality. During the 2007-2014 period Teraplast Group invested over 260 million RON (lei) in the development and improvement of its manufacturing plants, but also in expanding its product portfolio.

Starting from 2 nd July 2008 the greatest part of the Group - Teraplast is listed on Bucharest Stock Exchange under the TRP logo.

For additional information please contact us at the phone number 0752-101.571, e-mail: diana.bretfelean@teraplast.ro, contact person Diana Bretfelean – Legal Adviser.