2. The announcement for publication in România Liberă newspaper, on the report drawn up on June 30 th, 2017.

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Janice Douglas
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1 TO THE FINANCIAL SUPERVISORY AUTHORITY We forward the following documents to you: 1. a) The report drawn up on June 30 th, 2017 according to Law no. 24/2017, on the first semester of 2017 b) the half-yearly accounting report, drawn up on June 30 th, 2017, according to the provisions of the Order of the Minister of Public Finance no. 895/2017, published in the Official Gazette no. 463 / June 21 st, The announcement for publication in România Liberă newspaper, on the report drawn up on June 30 th, President General Manager Mihai Ene Illegible signature applied Round stamp affixed: S.C. PRACTIC S.A., Bucharest

2 STATEMENT We, the undersigned members of the Board of Directors of PRACTIC SA, tax identification number RO , registered with the Trade Register under no. J40/611/1991, made up of: Ene Mihai Chairperson of the Board of Directors and General Manager, Ontica - Stanescu Gabriela Elisor - member of the Board of Directors and Boldi Sorin Florian - member of the Board of Directors, according to the provisions of art. 30 in the Accounting Law no. 82/1991, we state that we undertake liability for the elaboration of the accounting reports related to the first semester of 2017 and confirm the following: 1. The accounting policies used to prepare the accounting records for the first semester of 2017 are compliant with the Order of the Minister of Public Finance no. 1802/2014 for the approval of the accounting Regulations on the individual annual financial statements and the consolidated annual financial statements and the Accounting Law no. 82/1991, as further amended. 2. In the first semester of 2017, there were no cases of breaches or possible cases of noncompliance with laws or regulations that could significantly influence the accounting reports. 3. The accounting reports on June 30 th, 2017 of PRACTIC SA provide an accurate image of the financial position, financial performance, profit and loss account and other piece of information related to the activity carried out over the period January 1 st, June 30 th, PRACTIC S.A. operates in compliance with the business continuity principle. BOARD OF DIRECTORS Ene Mihai - Chairperson General Manager - Illegible signature applied Round stamp affixed: S.C. PRACTIC S.A., Bucharest Ontica Stanescu Gabriela Elisor - member Illegible signature applied Boldi Sorin Florian - member Illegible signature applied

3 Report on the 1 st semester of 2017 Pursuant to Law no. 24/2017 Report date: July 28 th, 2017 S.C. PRACTIC S.A. Registered office: Bucharest, 2, Otetelesanu St., 1 st District Telephone/fax number: 021/ / Number and date of registration with the Trade Register Office: J40/611/1991 Sole registration code with the Trade Register Office and fiscally recorded: RO Main features of the issued securities: - 593,959 dematerialized shares, with the nominal value of RON 69 /share, PRBU symbol Organized market on which securities are traded: - ATS/ AeRO 1. Economic-Financial Status: a) Balance sheet items: Name of the item 30 th, th, 2016 (absolute value) (relative value) Fixed assets 422,651, ,201, ,449, % Current assets 18,891,581 10,242,096 8,649, % Deferred liabilities 88,000 79,942 8, % Short-term liabilities 10,122,035 8,454,220 1,667, % Long-term liabilities 34,907,423 39,530,295-4,622, % Provisions 1,008, , , % Deferred income 2,408,809 2,368,529 40, % Subscribed and paid in share capital 40,983,171 40,983, % Revaluation reserves 299,476,079 62,052, ,423, % Reserves 7,827,917 6,736,367 1,091, % Result carried forward ,315,888-1,414, % Current result 21,995,952 13,429,591 8,566, % Total equity 393,184, ,517, ,667, % - the constructions and lands have the share of 84.65% in the total tangible assets of the company on June 30 th, 2017, which, following the fair value assessment of the real estate owned by the company on December 31 st, 2016, value % higher than the one recorded in the similar period of the previous year; - the financial assets have an approximate equal value on June 30 th, 2017 as compared to June 30 th, In the first semester of 2017, the company acquired a stock at SC Aviatia Utilitara Bucuresti S.A., representing 49.91% of the share capital thereof; - the receivables non-recovered from customers increased by 39.25% (the equivalent of RON 225,308) over the same analyzed period, mainly due to the decrease in the capacity to pay the contractual liabilities of some tenants in the food sector - bakery and pastry and the one of television and ancillary services; - the short-term financial investments increased 2.5 times on June 30 th, 2017 as compared to June 30 th, 2016, respectively by the amount of RON 9,456,044, due to the fact that the company collected, in the first semester of 2017, the price of the sale-purchase agreement of Racovita spa complex (locality of Slanic Moldova) and the beneficial interest, as set forth in the Agreement signed for the takeover of the stock from Aviatia Utilitara Bucuresti SA - the total liabilities of the company, presented in the form entitled report on the assets, liabilities and equity, decreased by 6.16% (RON 45,029,458 on June 30 th, 2017, as compared to RON 47,984,515 on June 30 th, 2016) following the reimbursement of a part of the bank loan, representing 84% of total liabilities;

4 - the debts towards third parties recorded a 23.25% increase between the two analyzed periods, especially as a result of the increase in the current payment liabilities (maturing on July 25 th, 2017) to the State budget, as well as the dividends distributed to the shareholders, but not yet collected by some minority shareholders; - the equity increase to RON 393,184,504 on June 30 th, 2017, from RON 147,517,246 on June 30 th, 2016 ( % for total equity, respectively RON 245,667,258), originates from: a) increase of the revaluation reserves on June 30 th, 2017 as compared to June 30 th, 2016 by the amount of RON 237,423,850, following the fair value valuation of the real estate of the company (buildings and lands) at the end of the previous financial year; b) increase of the legal reserve by the amount of RON 1,091,550, following the increase of the share capital in The value of the legal reserve must reach 20% of the share capital according to the law on trading companies. c) decrease of the result carried forward, representing the excess generated from the revaluation reserves by the amount of RON 1,415,503 as a result of the distribution of part thereof under the form of dividends in September 2016; d) increase of the profit for the first semester of 2017 by RON 8,566,361, as compared to the first semester of 2016, especially as a result of the collection of the beneficial interest of the shares at Aviatia Utilitara Bucuresti S.A. and the distribution of dividends related to the profit generated in the financial year of 2016 by SC Piata Obor, Market & Complex Comercial SA, wherein Practic S.A. is a majority shareholder; b) profit and loss account: Name of the item 30 th, th, 2016 (absolute value) (relative value) Total operating income 20,562,174 16,908,479 3,653, % Total operating expenses 9,958,026 5,261,385 4,696, % Operating profit 10,604,148 11,647,095-1,042, % Total financial income 15,098,421 5,085,735 10,021, % Total financial expenses 910,324 1,436, , % Financial profit 14,188,097 3,649,425 10,538, % Gross profit 24,792,245 15,296,520 9,495, % Corporate tax 2,796,293 1,866, , % Net profit 21,995,952 13,429,591 8,56, % - the turnover increase on June 30 th, 2017 as compared to June 30 th, 2016, by 1.80%, respectively in the amount of RON 302,954, is due to the conclusion of new lease agreements; - the expenses with the highest share in the total turnover are represented by those on amortization (14.14%), followed by personnel (10.69%) and services provided by third parties (5.26%), values comparable between the two analyzed periods. The operating profit recorded over the period January - June 2017 is 8.95% lower as compared to January - June The main causes are: increase of the depreciation expenses as a result of the revaluation of the patrimony of the company on December 31 st, 2016, of the expenditures on building tax and pro rata and personnel costs. - the financial profit recorded on June 30 th, 2017, worth RON 14,188,097, increased as compared to June 30 th, 2016 by %, respectively by the amount of RON 10,538,672, increase mainly determined by: a) revenues from participation interests generated following the distribution of dividends by the companies wherein Practic S.A. holds equity securities b) revenues generated from the beneficial ownership and from the incentives granted to the tenants The gross profit amounted to RON 24,792,245 on June 30 th, 2017, 62.08% up as compared to the similar period of Declared and paid dividends

5 In the month of May 2017, the payment to the shareholders under the form of dividends of the profit of the financial year of 2016 began, according to the resolution of the Ordinary General Meeting of the Shareholders as of April From the profit of distributed as dividends, the amount that some minority shareholders failed to claim by June 30 th, 2017 is of RON 2,387,175. c) Cash flow: The statement of changes in cash flows from operating, investing and financing activities, as compared to the same period of the previous year, is due to the revenues from participations, the capitalization of the beneficial ownership, as well as the capitalization of an asset. Over the analyzed period, the Company complied with the payment liabilities thereof on the due dates to financiers, shareholders, the State budget, the social security and local budgets. 2. Analysis of the activity of the trading company 2.1 Presentation and analysis of the trends, uncertainty factors that could affect the liquidity of the company as compared to the first semester of 2017 Over the analyzed period, the company maintained its existing assets, except for the sale of an asset, namely Racovita spa complex, which it exploited for the fulfillment of the main scope of business thereof, namely renting. The customer portfolio continues to be various economic activities, so that the company cannot be significantly affected by the potential cessation of the contractual relationships with various trading partners or by the dynamics of a particular line of business thereof. The total liabilities of the company towards shareholders, banking institutions, the State budget, the social security and local budgets, the employees and third parties is approximately 7% lower between the two analyzed periods. No risks were identified related to the type of performed economic activity, the application of the law specific to the scope of business and the economic / tax one. For the next period, no changes are intended as to the activity profile. The company plans to initiate several real estate development projects. 2.2 Presentation and analysis of the effects on the financial status of the company of all the expenses - capital, current, anticipated of the company, as compared to the first semester of 2016 Name of the item Per January 1 st - June 30 th, 2017 Per January 1 st - June 30 th, 2016 (absolute value) (relative value) Total operating expenses, out of which: 9,958,026 5,261, , % Expenses on materials, power, water 127, ,348 9, % Personnel expenses 1,831,227 1,630, , % Expenses on amortization 2,420,888 2,159, , % Expenses on external service supplies 900, , , % Expenses on other duties, local taxes included 1,171, , , % Other operating expenses 3,815,049 11,105 3,803,944 34,254.34% Total financial expenses, out of which: 910,324 1,436, , % Expenses on interests 735, ,259-84, % Other financial expenses, exchange rate differences 4,781, ,050 4,165, %

6 included Value adjustments for the financial assets (4,606,400) - 4,606,400 - Total expenditure 10,868,350 6,697,694 4,170, % Given the activity profile of the company, the types of expenses incurred for the rental activity are relatively constant in time. The values that significantly vary are generated by: - the increase in local taxes on buildings and those pro rata with VAT; - the expenses resulted from the sale of Racovita spa complex, not fully amortized on the conclusion date of the commercial transaction; - the expenses on services provided by third parties for the performance repair works on the terraces of some business premises. 2.3 Presentation and analysis of trends, economic changes significantly affecting the basic revenues of the company as compared to the first semester of 2016 Name of the item Per January 1 st - June 30 th, 2017 Per January 1 st - June 30 th, 2016 (absolute value) (relative value) Total venit din exploatare, din care: 20,562,174 16,908,479 3,653, % Venituri din chirii 17,126,835 16,823, , % Alte venituri din exploatare 3,435,339 84,598 3,350,741 3,960.78% Total venit financiare, din care: 15,098,421 5,085,735 10,021, % Venituri din participatii 6,095,822 4,417,456 1,678, % Venit din dobânzi 41,461 13,988 27, % Alte venit fin, inclusiv diferente de curs valutar 8,961, ,291 8,306,847 1,269.60% Total venituri 35,660,595 21,994,214 13,666, % The revenues from the rental activity remained relatively constant between the two periods under review. Other operating income increased mainly as a result of the sale of Racovita spa complex (locality of Slanic Moldova). Revenues from the owned shares represent the revenues from the dividends distributed by SC Obor Square, Market & Complex Comercial S.A. (POMCC) according to the resolution of the General Meeting of the Shareholders of the aforementioned company of March 2017, this being the second year in which Practic S.A. receives dividends as a result of the financial investment made by participating in the establishment of the share capital of POMCC. Other financial income increased as a result of the beneficial interest collected according to the provisions of the Agreement for the takeover of the stock from Aviation Utility Bucharest S.A. 3. Changes affecting the capital and management of the company 3.1 The Company has fully and duly fulfilled the payment liabilities thereof to the State budget, the social security and local budgets, banking institutions, service and utility providers. Taking into account the results of the first semesters of the years of 2017 and 2016, it can be ascertained that the exposure of the company to the price, credit, liquidity risks is relatively low, the aforementioned indicators even recording a slight improvement. Between the two analyzed periods, there were changes in terms of the directors of the company, in the sense of the replacement of two of them as a result of their waiver of the mandate. 3.2 No changes occurred as to the rights of the shareholders of the company over the analyzed period.

7 The share of significant shareholders in the total share capital did not change over the analyzed period. The synthetic structure of the shareholders on June 30 th, 2017 appears as follows: Name of the holder Number of owned shares Percentage (%) DIMOFTE RADU 287, I.B.T.C. locality of TURKS&CAICOS ISLANDS TCA 190, WELLKEPT GROUP SA locality of BUCHAREST, 1 ST DISTRICT 71, Individuals Legal entities Total 593, Significant transactions Over the analyzed period, no significant transactions were reported with the shares of the company. The accounting reports drawn up on June 30 th, 2017 have not been audited. Annexes: - resolution of the Extraordinary General Meeting of the Shareholders / October 7 th, 2016 on the replacement of the Memorandum and the Agreement of the Company by the Articles of Incorporation of the Company; - resolution of the Extraordinary General Meeting of the Shareholders / December 14 th, 2016 on the replacement of the financial auditor of the company; - resolution of Ordinary General Meeting of the Shareholders / June 30 th, 2016 on the appointment of Mr. Mihai Ene as director for a period of 4 years, starting with the date of January 1 st, 2017; - resolution of the Ordinary General Meeting of the Shareholders / April 20 th, 2017 on the revocation of Mr. Lucian Hoanca from the position of director, as a result of the waiver of the mandate and the appointment as director, for a period of 4 years, of Mrs. Ontica - Stanescu Gabriela Elisor, starting with the date of April 22 nd, 2017; - resolution of the Ordinary General Meeting of the Shareholders / July 10 th, 2017 on the revocation of Mr. Ovidiu Dan Galatanu from the position of director, as a result of the waiver of the mandate and the appointment of Mr. Boldi Sorin Florian as director, for 4 years, starting with the date of July 1 st, 2017; - resolution of the Board of Directors as of December 8 th, 2016 on the extension of the term of office of general manager of Mr. Mihai Ene for a period of 5 years, starting with the date of January 1 st, CHAIRPERSON OF THE BOARD OF DIRECTORS GENERAL MANAGER ENE MIHAI - Illegible signature applied Round stamp affixed: S.C. PRACTIC S.A., Bucharest ECONOMIC MANAGER IONITA CRISTINA - Illegible signature applied

ARTICLES OF INCORPORATION OF S.C. PRACTIC S.A. CHAPTER I NAME, LEGAL FORM, SCOPE, REGISTERED OFFICE, DURATION

ARTICLES OF INCORPORATION OF S.C. PRACTIC S.A. CHAPTER I NAME, LEGAL FORM, SCOPE, REGISTERED OFFICE, DURATION ART.1 NAME OF THE COMPANY 1.1. The name of the company is "PRACTIC" S.A. In all subsequent