SOCIETATEA DE INVESTIŢII FINANCIARE OLTENIA S.A. Interim condensed standalone financial statements for the period ended 30 June 2016

Transcription

1 SOCIETATEA DE INVESTIŢII FINANCIARE OLTENIA S.A. Interim condensed standalone financial statements for the period ended 30 June 2016 Prepared in accordance with Regulation no. 39/2015 approving the Accounting Regulations in accordance with International Financial Reporting Standards, applicable to entities authorized, regulated and supervised by the Financial Supervisory Authority of financial instruments and investments Sector NOT AUDITED

2 Contents Interim condensed standalone statement of comprehensive income.. pag. 1 Interim condensed standalone statement of financial position... 2 Interim condensed standalone statement of changes in equity Interim condensed standalone statement of flow statements... 5 Notes to the Interim condensed standalone statement

3 SOCIETATEA DE INVESTIŢII FINANCIARE OLTENIA S.A. Interim condensed standalone statement of comprehensive income prepared on 30 June 2016 In RON Note 30 June June 2015 Income Income from dividends 5 36,963,029 25,862,187 Income from interests 13, ,975 Other operational income 6 250,650 95,043,822 Net income from differences of exchange rate (102,282) 368,775 Net income from assets sale 7 12,991,842 10,182,684 Expenses Administration and supervision fees and taxes 8 (893,900) (1,273,282) Revenues from retaking provisions for risks and expenditures 505,567 - Other operational expenditures 9 (4,556,733) (3,897,504) Income before income tax 45,171, ,410,657 Income tax 10 (3,248,813) (22,665,112) Net income 41,922, ,745,545 Other comprehensive income Revaluation to fair value of financial assets available for sale (128,739,209) (7,397,344) Reserves for financial assets available for sale transferred to profit or loss (13,706,852) (1,087,455) Comprehensive income for the period (100,523,500) 95,260,746 Earnings per share 23 0,0723 0,1788 Basic Interim condensed standalone financial statements were approved by the Board of Directors in the meeting of and were signed on its behalf by: conf.univ.dr.ec. Ciurezu Tudor jr. Radu Anina ec. Sichigea Elena Chairman / General Director Vice Chairman / Deputy General Director Financial Director Notes on pages 6 to 21 are an integral part of this standalone financial statements. page 1

4 SOCIETATEA DE INVESTIŢII FINANCIARE OLTENIA S.A. Interim condensed standalone statement of financial position prepared on 30 June 2016 In RON Note 30 June December 2015 Assets Cash and cash equivalents 11 5,245, ,407 Deposits placed in banks 12 28,114,111 5,813,698 Financial assets available for sale 13 1,504,836,067 1,668,679,019 Credits and receivables 14 17,070,273 4,467,266 Tangible assets 11,589,527 11,822,860 Real estates investments , ,571 Other assets , ,280 Total assets 1,567,739,938 1,692,351,101 Liabilities Payable dividends 155,724,134 81,027,502 Taxes and duties 17 (191,470) 2,541,343 Liabilities with tax postponed ,501, ,643,658 Other Liabilities 19 9,500,280 9,958,816 Total liabilities 273,534, ,171,319 Equity 20 Share capital 58,016,571 58,016,571 Adjustments in share capital 631,852, ,852,524 Other elements of equity 550,796, ,281,321 Reserves from revaluation of tangible assets 7,916,708 8,077,015 Legal and statutory reserves 17,782,035 17,782,035 Other reserves 21 2,417,698,157 2,387,864,253 Retained earnings following the application of IAS 29 on share capital and reserves (2,438,631,885) (2,438,631,885) Retained earnings except retained earnings from first application of IAS 29 6,852,384 (20,467,063) Income 41,922, ,405,011 Total equity 1,294,205,494 1,463,179,782 Total liabilities and equity 1,567,739,938 1,692,351,101 Interim condensed standalone financial statements were approved by the Board of Directors in the meeting of and were signed on its behalf by: conf.univ.dr.ec. Ciurezu Tudor jr. Radu Anina ec. Sichigea Elena Chairman / General Director Vice Chairman / Deputy General Director Financial Director Notes on pages 6 to 21 are an integral part of this standalone financial statements. page 2

5 SOCIETATEA DE INVESTIŢII FINANCIARE OLTENIA S.A. Interim condensed standalone statement of changes in equity prepared on 30 June RON Inflated share capital Reserves from revaluation of tangible assets Legal and statutory reserves Other reserves Reserves from revaluation of financial assets available for sale Other equity Retained earnings following the application of IAS 29 on share capital and reserves Accumulated income Balance at 1 JANUARY ,869,095 8,077,015 17,782,035 2,387,864, ,343,001 (3,061,680) (2,438,631,885) 111,937,948 1,463,179,782 COMPREHENSIVE INCOME Income of financial year 41,922,561 41,922,561 Other elements of comprehensive income Increases / decreases in reserves from revaluation of tangible assets net of deferred tax - (160,307) , Net change in reserve in measuring financial assets available for sale (net of deferred tax) (128,739,209) (128,739,209) 3. Reserves for financial assets available for sale transferred to profit or loss (13,706,852) (13,706,852) TOTAL COMPREHENSIVE INCOME For the period - (160,307) - - (142,446,061) ,307 (142,446,061) Deferred tax related to comprehensive income revaluation surplus not gained taxed ,576 9,576 Other reserves - own financing sources ,833, (29,833,904) - Free shares to receive ,961, ,961,179 Transactions with shareholders recognized directly in equity Dividends prescribed by law Transfer to profit or loss account from other reserves Dividend Payment for the year (75,421,543) (75,421,543) TOTAL TRANSACTIONS WITH SHAREHOLDERS RECOGNIZED DIRECTLY IN EQUITY (75,421,543) (75,421,543) BALANCE ON 30 JUNE ,869,095 7,916,708 17,782,035 2,417,698, ,858,119 (3,061,680) (2,438,631,885) 48,774,945 1,294,205,494 TOTAL Interim condensed standalone financial statements were approved by the Board of Directors in the meeting of and were signed on its behalf by: conf.univ.dr.ec. Ciurezu Tudor jr. Radu Anina ec. Sichigea Elena Chairman / General Director Vice Chairman / Deputy General Director Financial Director Notes on pages 6 to 21 are an integral part of this standalone financial statements. page 3

6 SOCIETATEA DE INVESTIŢII FINANCIARE OLTENIA S.A. Interim condensed standalone statement of changes in equity prepared on 30 June RON - Inflated share capital Reserves from revaluation of tangible assets Legal and statutory reserves Other reserves Reserves from revaluation of financial assets available for sale Other equity Retained earnings following the application of IAS 29 on share capital and reserves Accumulated income BALANCE ON 1 JANUARY ,869,095 7,999,476 17,782,035 2,445,274, ,731,332 - (2,438,631,885) 47,511,156 1,385,535,986 COMPREHENSIVE INCOME Income for financial year ,745, ,745,545 Other elements of comprehensive income Increases / decreases in reserves from revaluation of tangible assets net of deferred tax - (146,618) , Net change in reserve in measuring financial assets available for sale (net of deferred tax) (7,397,344) (7,397,344) 3. Reserves for financial assets available for sale transferred to profit or loss (1,087,455) (1,087,455) TOTAL COMPREHENSIVE INCOME For the period - (146,618) - - (8,484,799) ,618 (8,484,799) Other reserves - own financing sources ,256, (25,256,244) - Other components of equity (deferred tax related to reserves) 115,336, ,336,731 Other transfers (retained earnings, free shares of profits) ,845,849 27,845,849 Transfer of free shares in the balance ,644, ,644,871 Transactions with shareholders recognized directly in equity 1. Dividends prescribed by law Transfer to profit or loss account from other reserves (82,666,768) (82,666,768) 2. Dividend Payment for the year (69,619,886) (69,619,886) TOTAL TRANSACTIONS WITH SHAREHOLDERS RECOGNIZED DIRECTLY IN EQUITY (82,666,768) (69,619,886) (152,286,654) BALANCE ON 30 JUNE ,869,095 7,852,858 17,782,035 2,387,864, ,891, ,336,731 (2,438,631,885) 84, ,586,337,529 Interim condensed standalone financial statements were approved by the Board of Directors in the meeting of and were signed on its behalf by: conf.univ.dr.ec. Ciurezu Tudor jr. Radu Anina ec. Sichigea Elena Chairman / General Director Vice Chairman / Deputy General Director Financial Director TOTAL Notes on pages 6 to 21 are an integral part of this standalone financial statements. page 4

7 SOCIETATEA DE INVESTIŢII FINANCIARE OLTENIA S.A. Interim condensed standalone statement of flow statements prepared on 30 June RON - Name of element Reporting period A 1 2 Treasury flow from operating activities Proceeds from customers, other proceeds 890, ,658 Proceeds from sales of financial investments (equity securities) 39,173,129 19,984,150 Payments for acquisition of shares (53,329,457) (12,431,447) Payments to suppliers and employees, other payments (4,332,969) (4,150,516) Payments to the state budget, social security budget and local budget (1,455,736) (1,592,123) Interest received 137,214 8,081 Dividends received 19,053,483 29,159,748 Interest paid - - Corporation tax paid (6,310,209) (2,131,354) Proceeds from insurance against earthquakes - - Net cash from operating activities Treasury flow from investing activities Payments for purchase of tangible assets (6,173,931) 29,417,197 (20,278) (8,538) Proceeds from sale of tangible assets - Net cash from investing activities (20,278) (8,538) Treasury flow from financing activities: Proceeds from issue of shares - - Proceeds from long-term borrowings - - Payment of finance lease liabilities - - Dividends paid (1,225,146) (725,248) Tax dividends paid (3,085,028) (1,905,174) Net cash from financing activities (4,310,174) (2,630,422) Net increase of cash and cash equivalents (10,504,383) 26,778,237 Cash and cash equivalents at beginning of reporting period 39,497,855 6,575,101 Cash and cash equivalents at end of reporting period 28,993,472 33,353,338 Interim condensed standalone financial statements were approved by the Board of Directors in the meeting of and were signed on its behalf by: conf.univ.dr.ec. Ciurezu Tudor jr. Radu Anina ec. Sichigea Elena Chairman / General Director Vice Chairman / Deputy General Director Financial Director Notes on pages 6 to 21 are an integral part of this standalone financial statements. page 5

8 SOCIETATEA DE INVESTIŢII FINANCIARE OLTENIA S.A. Notes to the Interim simplified standalone statement prepared on 30 June 2016 (All amounts are expressed in RON, unless specified otherwise) 1. Reporting entity Societatea de Investitii Financiare Oltenia S.A. (hereinafter referred to as The Company ) was founded on in Craiova - Romania, under Law no. 133/1996, Law for transformation of Private Ownership Funds into financial investment companies. The company was founded by transforming Private Ownership Fund V Oltenia. The company is a collective investment undertaking operating under Law no. 31/1990 on trading companies and Law no. 297/2004 on stock market, as amended and supplemented. It is a self management company The company is based in Craiova, str. Tufanele nr. 1, cod postal , judetul Dolj. The company is registered at - Chamber of Commerce and Industry Oltenia, Registration Code , fiscal attribute RO; - National Securities Commission as another Collective Investment Undertaking with a diversified policy under Decision no. 1958/ and registered in the NSC Register under no. PJR09SIIR/160003/ ; As of April 30, 2013, according to GEO no. 93/Dec the Financial Services Authority FSA ( FSA ) was established, which replaces the National Securities Commission, the Private Pension System Supervisory Commission and Insurance Supervisory Commission; - Securities Record Office under Certificate no. 419/ The Company shares are listed at Bucharest Stock Exchange, Category I, with the indicative SIF 5, starting with Records of shareholders and shares of Company are held by S.C. DEPOZITARUL CENTRAL S.A. Bucharest. The storage activity under law and NSC/FSA regulations is provided by Raiffeisen Bank S.A., Bucharest Branch. In accordance with the Articles of Association the Company has the following object of activity: -administration and management of shares in commercial companies for which own shares were issued, corresponding to the Ownership Certificates and Nominal Privatization Voucher subscribed by citizens according to the provisions of art.4 paragraph 6 of Law no. 55/1995; - management of own portfolio of securities and making investments in securities according to regulations in force; - other similar and adjacent activities, according to regulations in force, as well as of management of own assets; Subscribed and paid capital is of 58,016,571 RON, divided into 580,165,714 shares with a nominal value of 0.1 RON/share. The main characteristics of the shares issued by the company are: ordinary, indivisible, nominative, of equal value, issued in dematerialized form and grant equal rights to their holders. 2. Basis of preparation a) Statement of compliance In accordance with Rule no. 39/2015 issued by the Financial Supervisory Authority of Financial Investment and Instruments sector, starting with the annual financial statement for the financial year 2015, the entities authorized, regulated and supervised by the FSA Financial Investment and Instruments sector, apply International Financial Reporting Standards adopted by the European Union ( IFRS ) as the official accounting regulations. December 31, 2015 is the date of transition to IFRS as an accounting basis, on which date by restatement were made and accounted for transactions with the transition from RNSC Regulation no. 4/2011 to IFRS accounting regulations. page 6

9 SOCIETATEA DE INVESTIŢII FINANCIARE OLTENIA S.A. Notes to the Interim simplified standalone statement prepared on 30 June 2016 (All amounts are expressed in RON, unless specified otherwise) 2. Basis of preparation (continued) a) Statement of compliance (continued) Thus, during 2015, the Company did not prepare interim report in accordance with IAS 34 Interim Financial Reporting. To ensure comparability of data, comparative information for the first half of 2015 prepared in accordance with NSC Regulation no. 4/2011, have been restated accordingly in the IFRS system without being audited. These condensed interim financial statements for the first half ended 30 June 2016 have been prepared in accordance with IAS 34 Interim Financial Reporting and should be read together with the standalone financial statements for 2015 prepared in accordance with Regulation no. 39/2015 approving the Accounting Regulations compliant with International Financial Reporting Standards, applicable to entities authorized, regulated and supervised by the Financial Supervisory Authority of Financial Investment and Instruments sector. In accordance with Regulation no. 1606/2002 of the European Parliament and the EU Council of 19 July 2002, as well as those ordered by NSC Decision no. 1176/ , the financial investment companies are required to prepare and submit to the FSA annual consolidated financial statements in accordance with IFRS, within 8 months of the financial year. Consolidated financial statements S.I.F. Oltenia S.A. Group on will be drafted, approved and made public up to date 31/08/2016. They will be available on the Company s website: b) Presentation of financial statements Presentation adopted by the company is based on the liquidity in the interim condensed standalone statement of financial position and presentation of income and expenses was made in relation to their nature in the interim condensed standalone statement of comprehensive income. The Company believes these methods of presentation provide information that is reliable and more relevant than those that would have been presented based on other methods allowed by IAS 1 Presentation of Financial Statements. c) Functional and presentation currency Management believes that functional currency as it is defined by IAS 21 The effects of exchange rate fluctuations is the Romanian leu (RON). The current interim condensed standalone statements are prepared in RON, rounded to the nearest RON, which is also the currency the Company chose as presentation currency. d) Basis of assessment Current interim condensed standalone statements are prepared on a fair value basis for derivative financial instruments, financial assets and liabilities at fair value through profit or loss account and financial assets available for sale, except those for which fair value can not be reliably established. Other financial assets and liabilities such as non-financial assets and liabilities are carried at amortized cost, historical cost or revalued amount. e) Use of appraisals and judgements Preparation of interim condensed standalone statements in accordance with IFRS as adopted by the European Union requires the use by the management of certain appraisals, judgements and assumptions that affects the application of accounting policies as well as the reported value of assets, liabilities, income and expenses of the Company. Judgements and assumptions associated with these appraisals are based on historical experience as well as other factors considered reasonable in the context of these appraisals. page 7

10 SOCIETATEA DE INVESTIŢII FINANCIARE OLTENIA S.A. Notes to the Interim simplified standalone statement prepared on 30 June 2016 (All amounts are expressed in RON, unless specified otherwise) 2. Basis of preparation (continued) e) Use of appraisals and judgements (continued) The result of appraisals forms the basis of judgements regarding the accounting values of assets and liabilities that cannot be obtained from other sources of information. The results obtained may differ from the values of appraisals. The company periodically reviews the appraisals and assumptions underlying the accounting records. The revisions of accounting appraisals are recognized in the period in which the appraisal is revised, if the revision affects only that period or in the period in which the appraisal is revised and future periods, if the revision of appraisals affects both the current and future periods. f) Changes in accounting policies The accounting policies adopted are consistent with those used in the previous year. 3. Significant accounting policies The accounting policies applied in these interim condensed financial statements are consistent with those of the standalone financial statements ended 31 December 2015 and have been applied consistently to all periods presented in these interim condensed standalone financial statements. Comparative financial information In accordance with Rule no. 39 of issued by the Financial Supervisory Authority of Financial Investment and Instruments sector, starting with the annual financial statements for the financial year 2015, the entities authorized, regulated and supervised by the FSA Financial Investment and Instruments sector, apply International Financial Reporting Standards adopted by European Union as official accounting regulations. December 31, 2015 is the date of transition to IFRS as an accounting basis, on which date the restatement were made and accounted for transactions with the transition from NSC Regulation no. 4/2011 to IFRS accounting regulations. Thus, during 2015, the Company did not prepare the interim condensed individual financial reports in accordance with IAS 34 Interim Financial Reporting. Consequently, for comparability with the current period, the first semester of 2016, the comparative information for the first semester of 2015 prepared in accordance with FSA Regulation No. 4/2011 were restated properly without being audited. 4. Financial assets and liabilities Accounting classifications and fair values The carrying amounts and fair values of financial assets and liabilities are presented at 30/6/2016 so: page 8

11 SOCIETATEA DE INVESTIŢII FINANCIARE OLTENIA S.A. Notes to the Interim simplified standalone statement prepared on 30 June 2016 (All amounts are expressed in RON, unless specified otherwise) 4. Financial assets and liabilities (continued) In RON Available for Amortized cost Net carrying Fair value sale amount Cash and cash equivalents - 5,245,264 5,245,264 5,245,264 Deposits placed in banks - 28,114,111 28,114,111 28,114,111 Financial assets available for sale 1,504,836,067-1,504,836,067 1,504,836,067 Investments held to maturity Other financial assets - 17,516,398 17,516,398 17,516,398 Total financial assets 1,504,836,067 50,875,773 1,555,711,840 1,555,711,840 Payable dividends - 155,724, ,724, ,724,134 Other financial Liabilities - 9,500,280 9,500,280 9,500,280 Total financial liabilities - 165,224, ,224, ,224,414 The carrying amounts and fair values of financial assets and liabilities are presented at 31/12/2015 so In RON Available for Amortized cost Net carrying Fair value sale amount Cash and cash equivalents 762, , ,407 Deposits placed in banks 5,813,698 5,813,698 5,813,698 Financial assets available for sale 1,668,679,019-1,668,679,019 1,668,679,019 Investments held to maturity Other financial assets - 4,834,546 4,834,546 4,834,546 Total financial assets 1,668,679,019 11,410,651 1,680,089,670 1,680,089,670 Payable dividends - 81,027,502 81,027,502 81,027,502 Other financial Liabilities - 9,958,816 9,958,816 9,958,816 Total financial liabilities - 90,986,318 90,986,318 90,986, Income from dividends Dividend income is recorded gross. Tax rates on dividends related to the period ended are 5% and zero ( : 16% and zero). page 9

12 SOCIETATEA DE INVESTIŢII FINANCIARE OLTENIA S.A. Notes to the Interim simplified standalone statement prepared on 30 June 2016 (All amounts are expressed in RON, unless specified otherwise) 5. Income from dividends (continued) Dividend income, mainly on contributors is as follows: In RON 30 June June 2015 BANCA TRANSILVANIA S.A. 13,473,250 - C.N.T.E.E. TRANSELECTRICA S.A. Bucureşti 9,974,878 11,645,204 BRD SOCIETE GENERALE S.A. Bucureşti 5,673,819 - S.N.T.G.N. TRANSGAZ S.A. Mediaş 4,993,904 3,316,779 EXIMBANK S.A. Bucureşti 1,281,822 - UNIVERS S.A. Râmnicu Vâlcea 886, ,835 BURSA DE VALORI BUCUREŞTI S.A. 333, ,409 ELBA S.A. Timişoara 106,113 83,840 TURISM S.A. Pucioasa 85,901 80,848 DEPOZITARUL CENTRAL S.A. Bucureşti 48,542 74,087 RELEE S.A. Mediaş 47,884 - CONTACTOARE S.A. Buzău 38,212 51,478 S.I.F. MOLDOVA S.A. Bacău 18, ,361 OMV PETROM S.A. Bucureşti - 7,756,149 ELECTROMAGNETICA S.A. Bucureşti - 680,585 FLAROS S.A. Bucureşti - 492,686 PROVITAS S.A. Bucureşti - 85,161 GASTRONOM S.A. Buzău - 61,366 ROMLUX LIGHTING COMPANY S.A. Câmpu Lung - 20,456 TRANSILVANIA LEASING - 20,943 TOTAL 36,963,029 25,862, Other operating income In RON 30 June June 2015 Financial income from adjustments for impairment of financial assets - 12,263,076 Income from provisions for impairment of current assets 1,640 8,760 Other operating income 229,672 82,749,842 Other financial income 19,338 22,144 Total 250,650 95,043,822 page 10

13 SOCIETATEA DE INVESTIŢII FINANCIARE OLTENIA S.A. Notes to the Interim simplified standalone statement prepared on 30 June 2016 (All amounts are expressed in RON, unless specified otherwise) 7. Net gain from sale of assets In RON 30 June June 2015 Income from sale of financial assets available for sale 19,964,340 38,823,129 The carrying amount of financial assets available for sale transferred 6,972,498 28,640,445 Net gain from sale of financial assets 12,991,842 10,182, Commissions, fees and taxes of administration and supervision In RON Expenses on fees payable by SSIF for share transactions Expenses on fees payable to shareholders registry services 30 June June , ,285 72,900 74,400 Expenses on fees for depository company 117, ,773 BVB Expenses - - Expenses on taxed payable to capital market entities (FSA) 577, ,075 Expenses on audit fees 10,121 - Other expenses on commissions, fees and dues 69, ,749 Total 893,900 1,273, Other operating expenses In RON 30 June June 2015 Expenses for taxes 250, ,121 Expenses with salaries and other personnel expenses Expenses with depreciation, provisions and value adjustments 3,650,108 3,056, , ,737 Expenses on external services 411, ,935 Total 4,556,733 3,897,504 In other operating expenses are summarized personnel expenses, expenses with other taxes and duties, expenses with depreciation, provisions and adjustments of value, external services expenses. In the period ended on average number of employees was 51 ( : 52) and number of employees registered at the end of the reporting period was 50 ( : 53). Company makes payments to the Romanian state institutions in its employee pension account. All employees are members of the pension scheme of the Romanian state. The company does not operate any other retirement scheme or benefits after retirement and, consequently, has no other obligations on pensions. Furthermore, the Company is not obligated to provide additional benefits to employees after retirement. page 11

14 SOCIETATEA DE INVESTIŢII FINANCIARE OLTENIA S.A. Notes to the Interim simplified standalone statement prepared on 30 June 2016 (All amounts are expressed in RON, unless specified otherwise) 10. Income tax Reconciliation of income before income tax to income tax expense in profit or loss account In RON 30 June June 2015 Current income tax 1,453,586 19,413,613 Tax on dividends 1,795,227 3,251,499 Deferred income tax expense - - Total income tax recognized in year result 3,248,813 22,665,112 Income before income tax 45,171, ,410,657 Tax in accordance with statutory rate of 7,227,420 20,225,705 16% Income tax effect of: Nondeductible expenses 395,383 2,026,556 Nontaxable income (6,166,917) (2,836,148) Tax rates on dividends 1,795,227 3,251,499 Amounts representing sponsorships within (2,300) (2,500) legal limits Records and reruns of temporary differences Income tax 3,248,813 22,665, Cash and cash equivalents In RON 30 June December 2015 Cash in hand 9,993 3,424 Current bank accounts 5,212, ,646 Cash equivalents 23,048 32,337 Total Cash and cash equivalents 5,245, , Deposits placed in banks In RON 30 June December 2015 Bank deposits at sight 28,108,074 5,812,694 Attached receivables 6,037 1,004 Total Deposits placed in banks 28,114,111 5,813,698 page 12

15 SOCIETATEA DE INVESTIŢII FINANCIARE OLTENIA S.A. Notes to the Interim simplified standalone statement prepared on 30 June 2016 (All amounts are expressed in RON, unless specified otherwise) 13. Financial assets Financial assets available for sale In RON 30 June December 2015 Shares at fair value 1,486,354,626 1,647,958,291 Shares at cost 16,348,838 18,419,537 Fund units at fair value 2,132,603 2,301,191 Total 1,504,836,067 1,668,679,019 The movement of financial assets available for sale in the reporting periods ended and is presented below: In RON Shares at fair value Shares at cost Fund units Total 01 January ,495,284,699 18,034,809 2,333,908 1,515,653,416 Reclassifications in 2015 Net change during the period 154,846, ,846,070 12,567,984 (20,960) (197,556) 12,349,468 Impairment losses 8,441, ,441,620 Changes in fair value (23,182,082) 405, ,839 (22,611,555) 31 December ,647,958,291 18,419,537 2,301,191 1,668,679,019 Net change during the period 6,994,263 (2,321,878) - 4,672,385 Impairment losses Changes in fair value (168,597,928) 251,179 (168,588) (168,515,337) 30 June ,486,354,626 16,348,838 2,132,603 1,504,836,067 On and shares at fair value category includes mainly the value of shares in the following issuers: OMV PETROM SA Bucuresti, BRD - Groupe Societe Generale, BANCA TRANSILVANIA SA Cluj Napoca, CNTEE TRANSELECTRICA SA Bucuresti, SNTGN TRANSGAZ SA Medias, SC ARGUS SA Constanta, SC ANTIBIOTICE SA Iasi. Hierarchy of fair value To determine fair value, the Company uses the following hierarchy of methods: - Level 1: Quoted prices (unadjusted) in active markets for identical assets and liabilities - Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. prices) or indirectly (i.e. derived from prices). - Level 3: valuation techniques largely based on unobservable elements. This category includes all instruments where the valuation technique includes items that are not based on observable date and for which unobservable input parameters can have a significant effect on the assessment of instrument. This category includes instruments that are valued based on quoted prices for similar instruments but which are subject to adjustments based largely on unobservable data or estimates to reflect the difference between the two instruments. page 13

16 SOCIETATEA DE INVESTIŢII FINANCIARE OLTENIA S.A. Notes to the Interim simplified standalone statement prepared on 30 June 2016 (All amounts are expressed in RON, unless specified otherwise) 13. Financial assets (continued) In RON 30 June December 2015 Level 1 739,978, ,688,842 Level 2 146,843, ,010,760 Level 3 618,014, ,979,417 Total 1,504,836,067 1,668,679,019 Fair value measurement of shareholdings at was performed as follows: - Securities quoted and traded in 2016, the market value was determined by taking into consideration the quotation on the last trading day (closing quotation on the main capital market for level 1 and level 2 were taken quotations shares traded in the last 30 trading days); - For securities listed that have not been traded in the last 30 trading days of 2016 and for unlisted securities, the market value was determined based on the equity of issuers; - Related securities of companies in the insolvency proceedings or reorganization, valuation is zero; - For units in UCITS, the value taken into account was the last net asset value, calculated and published. 14. Credits and receivables In RON 30 June December 2015 Trade receivables 276, ,827 Debitors 14,191,051 1,155,007 Receivables related to state budget and social security budget 3,697,238 3,697,238 Other receivables 3,073 1,351 Receivables impairment adjustments (1,097,517) (1,099,157) TOTAL 17,070,273 4,467, Real estates investments In RON 30 June December 2015 Balance at the beginning of the reporting period 438,571 1,005,026 Sales of real estate investments - (596,273) Acquisitions of real estate investments - - Rating Real Estate Investments - 29,818 Balance at end of reporting period 438, ,571 page 14

17 SOCIETATEA DE INVESTIŢII FINANCIARE OLTENIA S.A. Notes to the Interim simplified standalone statement prepared on 30 June 2016 (All amounts are expressed in RON, unless specified otherwise) 16. Other assets In RON 30 June December 2015 Intangible assets 3,474 4,382 Other intangible receivables 258, ,677 Stocks 20,233 21,096 Prepayments 163,881 87,125 TOTAL 446, , Taxes and duties In RON 30 June December 2015 Debts related social insurance budget 199, ,157 Debts related to State Budget (392,338) 2,194,617 Other taxes and duties 1, ,569 Total (191,470) 2,541, Deferred income tax liabilities Deferred income tax liabilities are determined by the following elements: In RON Assets Liabilities Net Tax 30 June 2016 Valuation at fair value of financial assets available for sale 533,028, ,028,561 85,284,570 Revaluation of tangible assets 9,424,652-9,424,652 1,507,944 Retained earnings representing the revaluation reserves achived without taxation 1,772,247-1,772, ,560 Retained earnings representing the revaluation reserves not achived, without taxation 3,624,534-3,624, ,927 Retained earnings representing the revaluation reserves not achived, without taxation real estate investments 359, ,751 57,560 Differences in fair value of financial assets held for sale - free shares in the balance 110,789, ,789,118 17,726,259 Legal reserves 11,603,314-11,603,314 1,856,530 Other reserves - dividends prescribed under OGMS decision of ,551,528-6,551,528 1,048,244 Other reserves 980, , ,906 TOTAL 678,134, ,134, ,501,500 page 15

18 SOCIETATEA DE INVESTIŢII FINANCIARE OLTENIA S.A. Notes to the Interim simplified standalone statement prepared on 30 June 2016 (All amounts are expressed in RON, unless specified otherwise) 18. Deferred income tax liabilities are determined by the following elements (continued) In RON Assets Liabilities Net Impozit 31 December 2015 Valuation at fair value of financial assets available for sale 701,543, ,543, ,247,023 Revaluation of tangible assets 9,615,493-9,615,493 1,538,478 Retained earnings representing the revaluation reserves achived without taxation 1,772,247-1,772, ,560 Retained earnings representing the revaluation reserves not achived, without taxation 3,493,557-3,493, ,969 Retained earnings representing the revaluation reserves not achived, without taxation real estate investments 359, ,751 57,560 Differences in fair value of financial assets held for sale - free shares in the balance 111,852, ,852,424 17,896,388 Legal reserves 11,603,314-11,603,314 1,856,530 Other reserves - dividends prescribed under OGMS decision of ,551,528-6,551,528 1,048,244 Other reserves 980, , ,906 TOTAL 847,772, ,772, ,643, Other liabilities In RON 30 June December 2015 Personnel liabilities 1,309,907 1,405,666 Trade liabilities 495, ,650 Guarantees received 1,664 1,664 Sundry creditors 17 7 Amounts payable for financial assets - - Provisions for risks and expenditures 7,693,262 8,198,829 Total other liabilities 9,500,280 9,958,816 In the analyzed period was resumed on income from provisions in the gross amount of 505,567 RON for implementation of sentence no. 257/ in case no. 6583/63/2014, the amount paid by way of damages (for 2010) to Mr. Buzatu Florian Teodor former director with mandate contract terms and member of the Board of Directors of the Company. page 16

19 SOCIETATEA DE INVESTIŢII FINANCIARE OLTENIA S.A. Notes to the Interim simplified standalone statement prepared on 30 June 2016 (All amounts are expressed in RON, unless specified otherwise) 20. Capital and reserves Share capital Share Capital structure is presented below. Number of shareholders Number of shares Amount (RON) (%) 30 June 2016 Resident individuals 5,756, ,999,021 24,499,902 42,23 Non-resident individuals 1,763 2,399, ,954 0,41 Total individuals 5,757, ,398,564 24,739,856 42,64 Resident legal persons ,844,282 21,784,428 37,55 Non-resident legal persons ,922,868 11,492,287 19,81 Total legal persons ,767,150 33,276,715 57,36 Total 30 June ,758, ,165,714 58,016, ,00 31 December 2015 Resident individuals 5,759, ,987,869 24,498,787 42,23 Non-resident individuals 1,756 3,358, ,814 0,58 Total individuals 5,761, ,346,011 24,834,601 42,81 Resident legal persons ,771,544 21,577,154 37,19 Non-resident legal persons ,048,159 11,604,816 20,00 Total legal persons ,819,703 33,181,970 57,19 Total ,761, ,165,714 58,016, ,00 Share Capital according to Articles of Association of the Company amounts to 58,016,571 RON divided into 580,165,714 shares with nominal value of 0.1 RON and is the direct result of subscriptions made to the Company s share capital by converting into shares of amounts due as dividend under Law no.55/1995 and Law No. 133/1996. On 30 June 2016 the number of shareholders was 5,758,307 (31 December 2015: 5,761,728). Shares issued by the Company are traded on the Bucharest Stock Exchange since November The records of the shares and shareholders is kept by the Depozitarul Central S.A. Bucharest. All shares are ordinary shares, were subscribed and paid in full on 30 June 2016 and 31 December All shares have equal voting rights and a nominal value of 0.1 RON/share. The number of shares authorized to be issued is equal to the shares issued. Reconciliation of share capital as determined under IFRS with the Articles of Association is as follows: In RON 30 June June 2015 Statutory share capital 58,016,571 58,016,571 The effect of applying IAS 29 (hyperinflation) on share capital 631,852, ,852,524 Restated share capital 689,869, ,869,095 page 17

20 SOCIETATEA DE INVESTIŢII FINANCIARE OLTENIA S.A. Notes to the Interim simplified standalone statement prepared on 30 June 2016 (All amounts are expressed in RON, unless specified otherwise) 20. Capital and reserves (continued) Reserve established under Law no. 133/1996 Following implementation of Norm no. 39/2015 of FSA, reserves for initial portfolio established according to Law. 133/1996 was reunited on with the amount of 26,316,548 RON, while the sum for reunification was recorded in retained earnings, resulting in a loss of reprocessing. The initial reserve reunited was updated to hyperinflation, registering in this regard the amount of 1,806,779,361 RON. Hyperinflation effect on share capital amounting 631,852,524 RON and on the reserve established under Law no. 133/1996 amounting 1,806,779,361 RON was recorded in retained earnings due to the adoption of IAS 29 for the first time, leading to a loss of hyperinflation in the amount of de 2,438,631,885 RON at the end of the reporting period. Legal reserves Legal reserves are constituted as required by law in the amount of 5% of the income achieved, to the amount representing 20% of the share capital. Legal reserves can not be distributed to shareholders. Legal reserve on amounted 11,603,314 RON ( : 11,603,314 RON). In 2015 and the first semester of 2016 the Company has not established legal reserves of income, those ones reached the ceiling of 20% of the share capital. Reserves from revaluation of financial assets available for sale The reserve includes the cumulative net changes in fair values of financial assets classified in this category, from the date of their classification and to their de-recognition. Deferred tax related to these reserves is recorded on equity and deducted from reserves of measuring financial assets available for sale. 21. Other reserves In RON 30 June December 2015 Other reserves 610,918, ,084,892 The effect of applying IAS 29 on other reserves 1,806,779,361 1,806,779,361 Total 2,417,698,157 2,387,864, Allocation of profit Profit for the year 2015, amounting to 132,405,011 RON has been allocated, according to the decision of the Ordinary General Meeting of Shareholders of , to the following destinations: in RON Cover the loss recorded in retained earnings from the transition to IFRS 27,149,564 Dividends (0,13 RON/share) 75,421,543 Own sources of financing 29,833,904 TOTAL 132,405,011 page 18

21 SOCIETATEA DE INVESTIŢII FINANCIARE OLTENIA S.A. Notes to the Interim simplified standalone statement prepared on 30 June 2016 (All amounts are expressed in RON, unless specified otherwise) 23. Earnings per share In RON 30 June June 2015 Profit attributable to ordinary shareholders 41,922, ,745,545 Weighted average number of ordinary shares 580,165, ,165,714 Basic earnings per share 0,0723 0, Guarantees granted Company does not have any guarantees granted. 25. Contingent related to the environment The Company has not recorded any provision for future costs environment elements. Management does not consider the costs associated with these elements as significant. 26. Transfer pricing Tax legislation in Romania contains rules on transfer pricing between affiliated persons since Actual legislative framework defines the market value for transactions between affiliates, as well as methods of transfer pricing. As a result, it is expected that the tax authorities initiate thorough check of transfer pricing to ensure that the fiscal result is not distorted by the effect of prices in relationships with affiliates. The Company can not assess the outcome of such review. 27. Transactions and balances with parties in special relationships Branches In accordance with the legislation in force, the Company has control in a total of 11 issuers on ( : 12 issuers). All branches of the company are based in Romania. For these ones, the percentage of ownership of the Company is no different from the proportion of voting power held. Branches and percentage of ownership are: Name of company Percentage held by SIF on % - Percentage held by SIF on % - ALIMENTARA S.A. Slatina TURISM PUCIOASA S.A. Dambovita PROVITAS S.A Bucuresti UNIVERS S.A. Rm Valcea CONSTRUCTII FEROVIARE S.A. Craiova FLAROS S.A. Bucuresti ARGUS S.A. Constanta GEMINA TOUR S.A. Rm Valcea page 19

22 SOCIETATEA DE INVESTIŢII FINANCIARE OLTENIA S.A. Notes to the Interim simplified standalone statement prepared on 30 June 2016 (All amounts are expressed in RON, unless specified otherwise) 27. Transactions and balances with parties in special relationships (continued) MERCUR S.A. Craiova VOLTALIM S.A. Craiova COMPLEX HOTELIER DAMBOVITA S.A. Targoviste CONSTRUCTII MONTAJ 1 S.A. Craiova Disappearance during the first half of 2016 of the shareholding in SC Constructii Montaj 1 S.A. Craiova is determined by its merger by absorption by SC Voltalim S.A. Craiova. Associated Entities On the company holds more than 20% but not exceeding 50% of the share capital for a total of 8 issuers ( : 10 issuers). All these companies are based in Romania. For these ones the percentage of ownership by the company is no different from the percentage of voting rights held. The company has no associates on and Key management personnel Administration Board: 30 June 2016 Tudor Ciurezu - Chairman, Anina Radu Vice Chairman, Cristian Busu, Victor Capitanu, Nicolae Stoian, Carmen Popa, Paul George Prodan. 31 December 2015 Tudor Ciurezu - Chairman, Anina Radu Vice Chairman, Cristian Busu, Victor Capitanu, Nicolae Stoian, Carmen Popa, Paul George Prodan. Senior Management: 30 June 2016 Tudor Ciurezu General Director, Anina Radu Deputy General Director. 31 December 2015 Tudor Ciurezu General Director, Anina Radu Deputy General Director. Departments Management: 30 June 2016 Elena Sichigea Director of Financial Department, Elena Caliţoiu Director of Investments and Risk Management Division, Dan Voiculescu Director of Monitoring Portfolio Division, Vasilica Bucur Director of Legal Division, Ion Patrichi Director Human Resources-Logistics Division 31 December 2015 Elena Sichigea Director of Financial Department, Elena Caliţoiu Director of Investments and Risk Management Division, Dan Voiculescu Director of Monitoring Portfolio Division, Vasilica Bucur Director of Legal Division, Ion Patrichi Director Human Resources-Logistics Division. page 20

23 SOCIETATEA DE INVESTIŢII FINANCIARE OLTENIA S.A. Notes to the Interim simplified standalone statement prepared on 30 June 2016 (All amounts are expressed in RON, unless specified otherwise) 29. Actions in court On there were a total of 36 disputes pending before the courts. The company stands as a claimant in 22 disputes, defendant in 7 disputes, intervener in 1 dispute and 6 cases being in insolvency proceedings. In most disputes in which the company is a claimant, subject of litigation is annulment / nullity of resolutions of general meetings of shareholders in portfolio companies. 30. Events after the balance sheet date The Extraordinary General Meeting of Shareholders from decided: It is approved the filling of the Company s object of activity according to the provisions of the art. 5 from Law no. 74/2015 and of the A.S.F. Regulation no. 10/2015 and the adequate rewriting of the art. 3 OBJECT OF ACTIVITY from the Company s Contract, which will have the following content: The main object of activity of the Company is NACE code Other financial service activities, except insurance and pension funding and its main activity is NACE code 6499 Other financial service activities n.e.c., as it is detailed in paragraph 2. The company has the following object of activity: a) administration and management of shares to the trading companies for which were issued own shares, according to the Ownership Certificate and to the Registered Privatization Coupons underwritten by citizens in accordance with the provisions of the art. 4 paragraph 6 of Law no. 55/1995. b) administration and management of own securities portfolio and realization of investments in securities according to the regulations in force. c) risks management. d) other similar and adjacent activities, according to the regulations in force and activities for the administration of own assets, code ; The AGEA decision wasn t enforced, the request for the registration of the amendments brought to the object of activity being rejected by the Trade Register Office Dolj through the resolution no / / The rejection is caused by the absence of ASF permit, who notified the company, through the Notification no. DRA / , that the advice of the amendment for the object of activity is realized once with the transmission of the documentation attesting the fulfillment of conditions for the acquisition, by S.I.F. Oltenia S.A., of the quality of A.F.I.A authorized by A.S.F. The content of the decision of the Extraordinary General Meeting of Shareholders was continued in the Articles of Incorporation to be submitted to the Extraordinary General Meeting of Shareholders of the Company, convoked for 25/ The Ordinary General Meeting of Shareholders from decided: To approve the financial statements related to the financial year 2015, the distribution of the net profit related to the financial year 2015, the Income and Expenses Budget and the Strategy for the year The date is approved as registration date (ex date ). conf.univ.dr.ec. Ciurezu Tudor jr. Radu Anina ec. Sichigea Elena Chairman / General Director Vice Chairman / Deputy General Director Financial Director page 21

24 THE REPORT OF THE ADMINISTRATION BOARD on the simplified interim individual financial statements for HALF-YEARLY REPORT under R.N.S.C. / F.S.A. Regulations no. 1/2006 Report date: Issuer`s name: Societatea de Investiţii Financiare OLTENIA S.A. Headquarters: Dolj County, Craiova, Tufănele street no. 1, zip code Phone/Fax: / CUI/CIF: RO Registered business number: J16/1210/ R.N.S.C. / F.S.A. Register no.: PJR09SIIR/160003/ Share capital subscribed and transferred: 58,016,571 lei Regulated market where the issued securities are traded: Bucharest Stock Exchange Premium Tier 1. Economic and financial status: On , the company's assets - calculated according to provisions of R.N.S.C. Regulation no. 15/2004 and F.S.A. Regulation no. 9/ recorded a market value of 1,594,039,152 RON, representing 93.32% of the value recorded on Compared with the value registered on , assets on reporting date represent 96.27%. This decrease in the market value of managed assets is mainly due to depreciation of the value of shares listed on the regulated market (for comparison, in the first half of 2016, the BET index depreciated by 7.57%).

25 Financial assets such as shares have a market value of 1,521,484,605 RON, i.e % of total assets under management. In S.I.F. Oltenia S.A. portfolio on , can be found holdings to the share capital of a total of 52 issuers, compared to 56 issuers on The nominal value of financial assets such as shares 526,381,237 RON - is slightly lowed compared to ,350,717 RON (registering a decrease of 0.75%). At the same time, the market value has decreased from 1,682,125,271 RON to 1,521,484,605 RON. In the first half of 2016, amounts placed in bank deposits and current accounts increased by % from 6,576,105 RON on to 33,359,375 RON on , increase mainly due to cashing part of dividends for fiscal year

26 Main sectors of activity represented in the portfolio as of are: Finances, banks, insurances Oil resources and related services Electricity and gas transport Food industry Tourism, public alimentation, leisure Letting and subletting real estate property Pharmaceutical industry Gas resources Car manufacture industry, processing Electronic, electrical engineering industry Domestic trade Metallurgical industry Glass, porcelain, faience industry Chemical industry Other financial intermediations Financial market management Constructions Power distribution, supply and services Weight at the market value of business sectors in total portfolio on June 30,

27 The shares portfolio structure according to the market on which they are traded is the following: - RON - It. no. Structure of portfolio Issuers Total nominal value of package Total market value of package Co. no. % - RON - % - RON - % 1 Companies listed on B.V.B ,849, ,151, Companies listed on AeRO (B.V.B.) ,658, ,538, Companies listed and not traded ,864, ,724, Companies closed ,847, ,070, Companies in reorganization, judicial liquidation ,161, TOTAL ,381, ,521,484, Within the companies of closed type, the share package held in Banca Comercială Română S.A. Bucharest, amounting to 438,306,682 RON represents 73.29% of the total market value of the closed companies. The net asset of the company - as of calculated in accordance with the law (i.e. FSA Regulation no. 9/2014), is 1,436,699,470 RON, increasing by 5.24 % to the value at The value of the unitary net asset on is RON/share. 4

28 Evolution of Unitary Net Asset during the period December 31, June 30, lei December 31, 2015 January 31, 2016 February 29, 2016 March 31, 2016 April 30, 2016 May 31, 2016 June 30, 2016 In the first half of 2016, the net asset value knew the following evolution: Net asset value - RON - VANU - RON ,517,879, ,577,464, ,504,116, ,413,222, ,392,796, ,436,699, On , the net asset value registered a decrease of 11.47% compared to the value recorded on

29 As concerning the shares type assets, the most important holdings in terms of weight in assets, are represented by: Ct. No Name of issuer BANCA COMERCIALĂ ROMÂNĂ S.A. Bucureşti - closed BRD Groupe Societe Generale Bucureşti OMV PETROM S.A. Bucureşti - Premium - Premium C.N.T.E.E. TRANSELECTRICA Bucureşti - Premium Market value according to FSA Regulation 9/ RON - Weight in share capital of issuer (%) Weight in total asset of S.I.F. (%) Weight in net asset of S.I.F. (%) 438,306, ,760, ,733, ,889, ARGUS S.A. Constanţa - AeRO 89,757, BANCA TRANSILVANIA S.A. Cluj Napoca - Premium S.N.T.G.N. TRANSGAZ S.A. Mediaş - Premium 70,668, ,197, ANTIBIOTICE S.A. Iaşi - Premium S.N.G.N. ROMGAZ S.A. Mediaş - Premium EXIMBANK S.A. BANCA DE EXPORT IMPORT A ROMANIEI Bucureşti - closed 41,579, ,948, ,426, T O T A L 1,207,269, The value of the top 10 holdings in the portfolio is 84.03% of the net asset of the company. Of the 10 holdings above, 7 are listed on Premium Tier of the Bucharest Stock Exchange those holdings also being part of the most liquid shares on the stock market and representing 44.81% of the net assets of the company. S.I.F. OLTENIA S.A. recorded on , cash assets and money market investments totaling 33,359,375 RON (calculated in accordance with FSA Regulation no. 9/2014), representing 2.09% of the total assets. 6

30 Cash assets and money market investments have the following structure: Type of financial asset Updated value (calculated according to FSA Regulation 9/2014) - RON - Weight in the total asset of S.I.F. (%) Weight in the net asset of S.I.F. (%) Bank deposits in RON * 23,303, Bank deposits in foreign currency * 4,810, Current accounts and cash RON 5,109, Current accounts and cash in foreign currency TOTAL 135, ,359, * Bank deposits in RON and in foreign currency include also accrued interest according to RNSC Regulation 15/2004 and FSA Regulation 9/2014. Structure of placements in monetary instruments on June 30, 2016 Cash and Cash Equivalents in the account - lei 15.32% Deposits in lei 69.86% Deposits in foreign currency 14.42% Cash and Cash Equivalents in the account - foreign currency 0.40% 7

31 Cash assets and monetary investments on (amounting to 33,359,375 RON) register an increase of % compared to the beginning of the reporting period. Analysis of Financial Statements prepared for highlights the main issues below. Current assets, according to the balance sheet are valued at 50,449,881 RON and show an increase of 4.56 times compared to the value at the beginning of the year. Within current assets, Cash and bank accounts is 66.12%. The value of receivables at is 17,070,273 RON and show an increase of 3.82 times compared to receivables at Liabilities at the reporting date are 265,841,182 RON. The structure is as follows: - liabilities amounts to be paid within one year, of which: 157,339,682 RON - Trade liabilities: 495,430 RON - Payable Dividends: 155,724,134 RON - Other liabilities: 1,120,118 RON - liabilities amounts to be paid in a period exceeding one year: 108,501,500 RON The Company does not record outstanding payments. On , the company has liabilities amounting to 1,567,739,938 RON. Liability components: - liabilities amounts to be paid within one year - liabilities amounts to be paid in a period exceeding one year - provisions - equity 157,339,682 RON 108,501,500 RON 7,693,262 RON 1,294,205,494 RON 8

32 The main economic and financial results on Annual provisions / Ct. Name of indicator according to IEB 2016 No. - RON - - RON - IEB 2016 (%) - RON - 1. TOTAL INCOME 160,541,253 52,797, ,333, TOTAL EXPENSES 37,382,095 9,420, ,793, GROSS RESULT - Profit 123,159,158 43,376, ,539, PROFIT TAX 19,413,613 1,453,586 5,162, NET RESULT - Profit 103,745,545 41,922, ,377, S.I.F. OLTENIA S.A. registered on income amounting to 52,797,012 RON, representing 32.89% of the value registered on Main income categories are: - income from securities and other financial instruments: 50,748,329 RON - income from interest: 13,201 RON - income from currency exchange rate: 219,120 RON - income from provisions and adjustment of impairment of receivables 505,567 RON Income from securities and other financial instruments represents 96.12% of the total income. Total expenses on are at the level of 9,420,865 RON, those ones regarding the operations with securities and other financial instruments representing 19.68% of them. Total expenses represent 25.20% of the value registered on Net profit achieved by the company on is 41,922,561 RON, representing 41.77% of net profit determined in the Income and Expenses Budget for the entire year of

33 The companies in S.I.F. Oltenia S.A. Portfolio that distributed dividends for the financial year 2015 are: Ct. no. Name of company S.I.F. Oltenia S.A. Holding on registration date - % - Net dividend due to S.I.F. Oltenia S.A. - RON - Net dividend collected by S.I.F. Oltenia S.A. until RON - 1 BANCA TRANSILVANIA S.A. Cluj Napoca ,799,588 12,799,588 2 C.N.T.E.E. TRANSELECTRICA S.A. Bucureşti ,476,134 9,476,134 3 BRD SOCIETE GENERALE S.A. Bucureşti ,390,128 5,390,128 4 S.N.T.G.N. TRANSGAZ S.A. Mediaş ,744,209-5 S.N.G.N. ROMGAZ S.A. Mediaş ,980,185-6 ANTIBIOTICE S.A. Iaşi ,891,190-7 EXIMBANK S.A. Bucureşti ,217,731-8 UNIVERS S.A. Râmnicu Vâlcea , ,449 9 TURISM FELIX S.A , BURSA DE VALORI BUCUREŞTI S.A , , IAMU S.A. Blaj , ELECTRICA S.A. Bucureşti , S.I.F. TRANSILVANIA S.A. Braşov , ELBA S.A. Timişoara , , TURISM S.A. Pucioasa ,901 85, RELEE S.A. Mediaş ,884 47, DEPOZITARUL CENTRAL S.A. Bucureşti , CONTACTOARE S.A. Buzău ,212 38, S.I.F. MOLDOVA S.A. Bacău ,981 17,981 OVERALL TOTAL - 42,226,746 29,159,726 At the time of the report, dividends collected are totaling 29,159,726 RON, representing 69.06% of dividends due. For the financial year 2015, the Ordinary General Meeting of Shareholders of S.I.F. OLTENIA S.A. dated has approved the distribution of dividends, in gross amount of 0.13 RON/share (representing a distribution rate of 56.96% of the total net profit achieved in 2015). Also it was approved the date of as dividend payment date. 10

34 Shareholders entitled to receive dividends from the net profit in the financial year 2015 are those registered in the consolidated register of shareholders on the record date , approved by the Ordinary General Meeting of Shareholders dated , in accordance with art. 238, paragraph (1) of Law no. 297/2004 on the capital market. Distribution expenses (commissions) shall be borne by shareholders, of the net dividend amount. Shareholders will be informed in detail about the distribution of dividends through press releases to be sent timely to the Bucharest Stock Exchange and will be published in the press and on the official website of S.I.F. Oltenia S.A.: Interim condensed standalone statement of flow statements prepared on 30 June RON - Name of element Reporting period A 1 2 Treasury flow from operating activities Proceeds from customers, other proceeds 890, ,658 Proceeds from sales of financial investments (equity securities) 39,173,129 19,984,150 Payments for acquisition of shares (53,329,457) (12,431,447) Payments to suppliers and employees, other payments (4,332,969) (4,150,516) Payments to the state budget, social security budget and local budget (1,455,736) (1,592,123) Interest received 137,214 8,081 Dividends received 19,053,483 29,159,748 Interest paid - - Corporation tax paid (6,310,209) (2,131,354) Proceeds from insurance against earthquakes - - Net cash from operating activities Treasury flow from investing activities Payments for purchase of tangible assets (6,173,931) 29,417,197 (20,278) (8,538) Proceeds from sale of tangible assets - Net cash from investing activities Treasury flow from financing activities: (20,278) (8,538) Proceeds from issue of shares

35 Proceeds from long-term borrowings - - Payment of finance lease liabilities - - Dividends paid (1,225,146) (725,248) Tax dividends paid (3,085,028) (1,905,174) Net cash from financing activities (4,310,174) (2,630,422) Net increase of cash and cash equivalents (10,504,383) 26,778,237 Cash and cash equivalents at beginning of reporting period 39,497,855 6,575,101 Cash and cash equivalents at end of reporting period 28,993,472 33,353, Analysis of company 2.1. S.I.F. OLTENIA S.A. recorded on , total cash assets of 33,359,375 RON (including interest to collect). They are placed in bank deposits at different maturity dates. Through this policy it was intended to achieve a high liquidity in the money market placements, so that there are always adequate amounts necessary for carrying on the company activity. In these circumstances, we consider that there are no factors that may affect the company s liquidity In line with the business strategy approved by the Ordinary General Meeting of Shareholders on , S.I.F. OLTENIA S.A. will continue the trading policy on the stock market, so that a high degree of liquidity is ensured During the first half of 2016 the number of holdings in the portfolio of S.I.F. Oltenia S.A. was reduced from 56 to 52, as follows: S.I.F. OLTENIA S.A. came out of a shareholding of 5 issuers, such as: a) By merger: - Voltalim SA Craiova absorbed: o Lemcor SA Craiova o CM1 SA Craiova 12

36 b) By sale transactions on the capital market: - GASTRONOM SA Buzau - SIBEX STOCK EXCHANGE SA Sibiu c) By contract of shares sale in case of closed companies: - MIRFO TRADING SA Târgu-Jiu In the period under review, 1 issuer entered S.I.F. OLTENIA S.A. s portfolio: SIF TRANSILVANIA SA. During the first semester of 2016, sales of shares were made, considering the market opportunities. Thus, the selling value of share packages was million RON. In the same period under review, investments in shares totaling million RON were made. In the first half of 2016, the most important capital market investments were in securities issued by: - S.I.F. TRANSILVANIA S.A. Braşov - S.N.G.N. ROMGAZ S.A. Mediaş - OMV PETROM S.A. Bucureşti Also, shares issued by TURISM LOTUS FELIX S.A. Băile Felix were purchased on the secondary market under contract of sale. 3. Changes affecting capital and management of company 3.1. S.I.F. OLTENIA S.A. has been able to meet its financial obligations during the reporting period Changes in the rights of holders of securities issued by the company - Not applicable Litigation On , the Legal Department of the S.I.F. Oltenia S.A. recorded in the state court a total of 36 cases, as follows: 22 cases Claimant; 7 cases Defendant; 1 cause Intervener; 6 cases insolvency proceedings. 13

37 Regarding their object, cases are structured as follows: - 6 cases under insolvency proceedings, as follows: 5 cases where S.I.F. Oltenia S.A. stands as a unsecured creditor; 1 case where it stands as a contribution creditor. - 9 cases annulment of OGSM decisions / annulment of transactions with shares, where S.I.F. Oltenia S.A. stands as a claimant; - 21 other cases; In cases concerning bankruptcy, the most important receivables as value are due by debtors ARO S.A. Câmpulung 217,921 RON, of which mainly dividends of 1995, 1996 and BIOSIN S.A. 194,120 RON of which mainly consideration package of shares as a result of a choice to withdraw from the company. In cases concerning S.I.F. Oltenia S.A. as claimant, regarding annulment of OGSM decisions, they mainly aim: change of articles of incorporation, establishment of new companies with equity in kind, acquisition of assets, transactions with shares, among defendant companies appearing: COREALIS S.A. Craiova, PRODPLAST S.A. Bucuresti, CONTACTOARE S.A. Buzău, CEREALCOM S.A. Alexandria. On the Chapter Other causes, where S.I.F. Oltenia S.A. is claimant, there are registered files with diversified object: criminal complaint, foreclosures, compensation claims, of which we exemplify: - enforcement to recover the amount of 603,516 RON, representing civil damages awarded by criminal court order in file no /2/2007 theft of shares committed by Goga Dan Octavian, Panaitescu Miron Victor, Negruţiu Claudiu Marius, jointly and severally liable to pay. During 2015, within enforcement was redeemed a building owned by Panaitescu Victor Miron. S.I.F. Oltenia S.A. cashed being in competition with other creditors, the amount of 35,987 RON. The procedure for recovery of the debt or closing for lack of supplies is continued. - enforcement against A.V.A.S. (currently A.A.A.S.) for the amount of 633,567 RON, according to civil sentence no. 1581/ , file no /3/2010, representing the amount owed by A.V.A.S. to RETIZOH S.A., i.e. 70% of the value of a building restituted to former owners; This company has executed this amount from S.I.F. Oltenia S.A. account, using provisions applicable to joint and several liability. On the case appear before the court in the state court appeals filed by A.A.A.S. against any attempt of the bailiff to recover the debt of S.I.F. Oltenia S.A. 14

38 - action seeking damages for failing to conduct mandatory public offer of shares in the application of Art. 203 of Law 297/2004 (regarding shares of MOBILA S.A. Rădăuţi, LACTA S.A Giurgiu). File on shares of MOBILA S.A. Rădăuţi was irrevocably settled. During trial S.I.F. Oltenia S.A. capitalized shares package held by that issuer. We are currently performing steps for enforcement of claims resulting from the writs of execution obtained on the file regarding shares of the issuer MOBILA S.A. Rădăuţi. File regarding LACTA S.A. Giurgiu is under appeal filed by defendants with hearing on In cases covering damages under art. 210 of Law 297/2004, in contradiction with the major shareholders of issuers SINTEROM S.A. Cluj- Napoca and CONTACTOARE S.A. Buzău. Cases are pending, not settled irrevocable. The case no. 4395/114/2012, concerning the obligation to pay damage by CONTACTOARE S.A. Buzău as major shareholder of SINTEROM S.A. Cluj-Napoca, was admitted by the High Court of Cassation and Justice the second appeal filed by S.I.F. Oltenia S.A., being judged again by Court of Appeal Ploieşti, with hearing on In file no. 5756/279/2012, concerning the obligation to pay damage SERVICIILE COMERCIALE ROMANE S.A. Piatra Neamţ as major shareholder of CONTACTOARE S.A. Buzău, at first instance judgment the action was dismissed, S.I.F. Oltenia S.A. filing appeal. - S.I.F. Oltenia S.A. filed a claim against CEREALCOM S.A. Alexandria, to order it to pay to S.I.F. Oltenia S.A. the amount of 1,660,826 RON, representing the share package held by S.I.F. Oltenia S.A. at CEREALCOM S.A. Alexandria, following the withdrawal from the company under Art. 134 of Law no. 31/1990 R, as amended and supplemented. The application is subject File no. 483/87/2016 and is registered before Teleorman Courthouse with hearing on The 7 cases in which S.I.F. Oltenia S.A. is the defendant are as follows: - 3 actions concerning monetary claims arising from the position of Director and/or administrators of S.I.F. Oltenia S.A. filed by Buzatu Florian Teodor and Popescu Carmen Ioana. Cases are pending in courts in various stages: file no. 6584/63/2014 case, claimant Buzatu Florian Teodor is pending before the High Court of Cassation and Justice for adjudication of appeal of S.I.F. Oltenia S.A., hearing on ; file 22552/215/2015, claimant Popescu Carmen Ioana is pending before Dolj Courthouse for hearing of appeals filed by both parties, hearing on ; file 12919/215/2015, 15

39 claimant Popescu Carmen Ioana is pending before Dolj Courthouse for hearing of appeal filed by Popescu Carmen Ioana, hearing on ; - 4 applications with different object: execution complaints, recovery of trial costs. 4. Significant transactions not applicable. 5. Changes in company management In the first half of 2016 there were no changes in the company management. So: Board of Directors Audit Committee Throughout the period reviewed, i.e , Board of Directors of S.I.F. OLTENIA S.A. was composed of: 1. Tudor Ciurezu - Chairman / General Director 2. Anina Radu Vice Chairman / Deputy General Director 3. Cristian Buşu Administrator Member of the Audit Committee 4. Victor Căpitanu Administrator 5. Nicolae Stoian Administrator 6. Carmen Popa Administrator Member of the Audit Committee 7. Paul George Prodan Administrator Member of the Audit Committee. The Audit Committee constituted by the Board of Directors was composed of: 1. Cristian Buşu - Chairman 2. Carmen Popa - Member 3. Paul-George Prodan - Member Senior Management S.I.F. Oltenia S.A. is coordinated by two senior managers: - Tudor Ciurezu General Director - Anina Radu - Deputy General Director, whereas according to the Articles of Incorporation and Internal Regulations of the company, Mr. Tudor Ciurezu, as chairman of the Board of Directors occupies also 16

40 the position of General Director and Mrs. Anina Radu, as Vice Chairman of the Board of Directors, occupies also the position of Deputy General Director. Departments Management Throughout the period reviewed, i.e , Departments Management was composed of: - Elena Sichigea Financial Department Director - Elena Caliţoiu Director of Investments and Risk Management - Dan Voiculescu Director of Portfolio Monitoring - Vasilica Bucur Legal Department Director - Ion Patrichi Director of Human Resources Logistics Internal control Throughout the period reviewed, internal control was carried by Mrs. Viorica Bălan Representative of Internal Control Department. Financial Audit Financial auditor of the company is JPA AUDIT ŞI CONSULTANŢĂ S.R.L. Bucureşti. Internal Audit Internal auditor is Mrs. Bălţăţeanu Nadia Florentina employee of issued for unlimited period. On , the number of employees of S.I.F. OLTENIA S.A. was 50 people (and two leaders) compared to 53 people (and two leaders) existing on NOTE The financial statements of were not audited. conf. univ. dr. ec. Tudor CIUREZU Anina RADU Ec. Elena SICHIGEA Chairman / General Director Vice Chairman / Deputy General Director Financial Director 17

41 Translation from Romanian into English STATEMENT according to the provisions of the R.N.S.C. / F.S.A. Regulations no. 1/2006 (as subsequently amended and supplemented) regarding issuers and operations with securities We hereby confirm that, to our knowledge, the half-yearly financial accounting statement on , which was prepared in accordance with applicable accounting standards, gives a fair and consistent image with the reality of: assets, liabilities, financial position, profit and loss account of SIF Oltenia SA and that the Administration Board Report includes a fair review of the development and performance of the company as well as a description of the main risks and uncertainties specific to the activity. Associate Professor PhD ec. Tudor CIUREZU Anina RADU ec. Elena SICHIGEA Chairman Deputy General Manager Economic Manager