5-7 Dimitrie Pompei Blvd, 5th Floor Part B, District 2, Bucharest Tel: (+40) 21.539.46.00, Fax: (+40) 21.310.06.05 J40/3315/2009, CUI RO 2695737 Share capital: 3.605.948,40 RON Email: [email protected]

BOARD OF DIRECTORS REPORT INDIVIDUALS FINANCIAL STATEMENS SEMESTER I 2017

According to Annex 31 of NSC Regulation no. 1/2006

Report date:16.08.2017 Name of the company: S.C. NATURA QUATTUOR ENERGIA HOLDINGS SA Social offices: Bucharest, 5-7, Dimitrie Pompei St., District 2 Phone/fax number: 021 539 46 00 / 021 310 06 05 Sole Registration Code with Trade Registry: RO 2695737 Trade Registry Number: J40/3315/2009 Subscribed and paid up share capital: 3,605,948.40 lei Regulated market on which the securities issued are traded: BSE Market

1. Economic and financial statement

The financial statements have been prepared in accordance with the requirements of the Law 82/1991 republished and the Order no.2844/2016. The financial statements have not been reviewed by an independent auditor.

1.1. The comparative economic and financial statement analysis

a) Balance sheet items: assets which represent at least 10% of the total assets; cash and equivalents; reinvested profits; total current assets; liabilities status; total current liabilities:

% out of total Balance sheet summary 01.01.2017 30.06.2017 assets 30.06.2017 Total assets 13.571.738 12.508.425 Fixed assets 11.750.950 10.511.756 84% Current assets 1.820.788 1.996.669 16% Total liabilities 9.992.807 10.378.386 83% Shareholders’ equity 3.578.931 2.130.039 17%

b) profit of loss account: net sales; gross revenues; cost and expenses representing at least 20% of net sales or gross revenues; risk and other expenses provisions; reference to any sale or closing of an activity sector performed in the last 6 months or is about to be performed in the following 6 months, dividends declared and paid:

Profit and loss account 30.06.2016 30.06.2017 summary Turnover 16.785 18.289 Other operating revenues 17.237 0 Expenses related to raw 14.688 29.254

1 5-7 Dimitrie Pompei Blvd, 5th Floor Part B, District 2, Bucharest Tel: (+40) 21.539.46.00, Fax: (+40) 21.310.06.05 J40/3315/2009, CUI RO 2695737 Share capital: 3.605.948,40 RON Email: [email protected]

materials and consumables Payroll expenses 550.729 594.734 Value adjustments of fixed 32.215 90.762 assets Third party expenses 308.378 573.754 Other operating expenses 22.251 15.643

c) cash flow: all the changes occured to the cash balance related to operating, investing and financing activities, the cash at the beginning and at the end of the period are presented in the below cash flow table:

STATEMENT OF CASH FLOWS

Financial year Elements 30.06.2016 30.06.2017 A 2 2 Cash-flows from operating activities : Net profit / (loss) for the period : (1.023.067) (1.448.891) Adjustments for: Depreciation of tangible assets 28.171 90.696 Amortisation of intangible assets 346 66 Net changes in provisions Interest expenses 213.235 258.431 Interest income (103.141) (100.098) Unrealized foreign exchange (gains)/losses, net (16.071) 9.844 Operating profit before working capital changes (900.527) (1.189.952)

Changes in trade and other receivables 2.596.783 (109.205) Changes in payables and other liabilities 427.848 (323.464) Prepaid expenses decreases (6.378) (5.063) Tax on profit paid - - Net cash from/(used in) operating activities 2.111.726 (1.627.685) Cash flows from investing activities : Purchases of tangible assets (633.257) (7.563) Purchases of intangible assets - - Loans (granted)/reimbursed (942.969) 1.379.992 Proceeds from sale of financial assets - - Purchases of shares - (171.097) Interest received 45.112 46.345 Net cash from/(used in) investing activities (1.531.114) 1.247.677

Cash flows from financing activities Proceeds from borrowings 2.008.325 5.451.647 Repayments of borrowings (2.456.261) (4.674.705) Dividends paid Interest paid (135.881) (335.321) Net cash from/(used in) financing activities (583.818) 441.621 Net increase/(decrease) of cash and equivalents 2.794 61.614

2 5-7 Dimitrie Pompei Blvd, 5th Floor Part B, District 2, Bucharest Tel: (+40) 21.539.46.00, Fax: (+40) 21.310.06.05 J40/3315/2009, CUI RO 2695737 Share capital: 3.605.948,40 RON Email: [email protected]

Cash and equivalents at the beginning of the year 26.737 54.877 Cash and equivalents at the end of the year 29.530 116.491

The financial statements have not been audited as at 30.06.2017.

2. Elements of perspective on the company's activity

a. 2.1. Presentation and analysis of trends, items, events or uncertainty factors that affect or could affect the liquidity of the company compared to the same period of previous year.

The company does not face the elements, events or uncertainty factors that may affect the liquidity of the company.

2.2. Presentation and analysis of the effects of current or anticipated capital expenditure on the financial status of the company compared to the same period last year

No current capital expenses that can affect the financial position of the company have been performed.

2.3. Presentation and analysis of events, transactions, economic changes that significantly affect revenues from the core activity.

There were no events, transactions or economic changes that could significantly affect the revenues from the main activity.

3. Changes that affect the capital and the administration of the company

There were no events, transactions or economic changes that could significantly affect the capital and the administration of the company. The subscribed and paid share capital amounts to 3.605.848,40 RON.

The share capital structure as at 30.06.2017:

Shareholders Numar actiuni Procent (%) Green SouthEast Europe Investments 8.680.715 24.07% Framecell Limited 4.226.758 11.72% Legal persons 12.288.055 34.08% Physical persons 10.863.956 30.13% Total 36.059.484 100%

3 5-7 Dimitrie Pompei Blvd, 5th Floor Part B, District 2, Bucharest Tel: (+40) 21.539.46.00, Fax: (+40) 21.310.06.05 J40/3315/2009, CUI RO 2695737 Share capital: 3.605.948,40 RON Email: [email protected]

3.1. Description of the cases in which the company could not respect its financial obligations during semester I 2017

During the analyzed period (semesterl I 2017) the company was not in the impossibility of not being able to respect its financial obligations.

3.2. Decription of any changes regarding the rights of the securities issues by the company holders

All the shareholders of the company SC NATURA QUATTUOR ENERGIA HOLDING SA. benefited of the same rights.

4. Significant transactions

In the case of share issuers, information regarding the major transactions concluded by the issuer with the persons acting together or in which these persons have been involved during the relevant period. There were not such cases.

President of the Board of Directors Tsamis Georgios

4 5-7 Dimitrie Pompei Blvd, 5th Floor Part B, District 2, Bucharest Tel: (+40) 21.539.46.00, Fax: (+40) 21.310.06.05 J40/3315/2009, CUI RO 2695737 Share capital: 3.605.948,40 RON Email: [email protected]

INTERIM INDIVIDUAL FINANCIAL STATEMENTS FOR 30.06.2017

STATEMENT OF FINANCIAL POSITION As at 30.06.2017

01-Ian-17 30-Iun-17 ASSETS

Tangible assets 2,645,155 2,562,022 Real estate properties - - Intangible assets 121 55 Loans receivables 7,456,339 6,300,344 Financial assets 1,571,559 1,571,559 Deffered tax assets 77,776 77,776 Total fixed assets 11,750,950 10,511,756

Inventories - - Loans receivables - - Trade and other receivables 1,742,193 1,851,398 Prepayments 23,718 28,781 Cash and cash equivalents 54,877 116,490 Total current assets 1,820,788 1,996,669 Total assets 13,571,738 12,508,425

Share capital 4,910,395 4,910,395 Share premiums 4,064,177 4,064,177 Reevaluation rezerves 1,555,744 1,555,744 Legal reserves 24,479 24,479 Other reserves 14,459 14,459 Retained earnings / (Accumulated losses) (4,538,647) (6,990,323) Result for the year (2,451,676) (1,448,891) Total shareholders equity 3,578,931 2,130,039

Loans and borrowings 5,369,120 6,302,470 Bonds 2,724,660 2,732,340 Deffered tax liabilities - - Total non-current liabilities 8,093,780 9,034,810

Trade and other payables 886,413 613,011 Loans and borrowings 740,148 621,271 Bonds 272,466 109,294 Total current liabilities 1,899,027 1,343,576 Total liabilities 9,992,807 10,378,386 Total shareholders Equity and Liabilities 13,571,738 12,508,425

ASSETS, LIABILITIES AND EQUITY STATEMENT As at 30.06.2017

Sold an curent la: No. Element name 01.01.2017 30.06.2017 Row Audited Unaudited A B 1 2 A. NON-CURRENT ASSETS I. INTANGIBLE ASSETS 1. Development expenses (ct. 203-2803-2903) 1 0 0

5 5-7 Dimitrie Pompei Blvd, 5th Floor Part B, District 2, Bucharest Tel: (+40) 21.539.46.00, Fax: (+40) 21.310.06.05 J40/3315/2009, CUI RO 2695737 Share capital: 3.605.948,40 RON Email: [email protected]

2. Concessions, patents, licenses, trademarks, rights and similar assets and other intangible assets (acc. 205+208-2805- 2 121 55 2808-2905-2906-2908) 3. Commercial estate (ct. 2071) 3 0 0 4. Prepayments (ct. 4094) 4 0 0 5. Intangible exploration and evaluation of mineral 5 0 0 resources (206-2806-2907) TOTAL (rows 01 to 05) 6 121 55 II. IMOBILIZARI CORPORALE 1. Lands and buildings (acc. 211+212-2811-2812-2911-2912) 7 1,925,426 1,925,426 2. Tehnical instalations and machines (acc. 213+223-2813- 8 644,798 578,664 2913) 3. Other instalations, equipment and furniture (acc. 214+224- 9 74,930 57,931 2814-2914) 4. Real estate investments (ct. 215-2815-2915) 10 0 0 5. Tangible assets under execution (acc. 231-2931) 11 0 0 6. Real estate investments under execution (acc. 235-2935) 12 0 0 7.Tangible exploration and evaluation of mineral resources 13 0 0 (acc. 216-2816-2916) 8. Prepayments (ct. 4093) 14 0 0 TOTAL (row 07 at 14) 15 2,645,155 2,562,022 III. BIOLOGICAL ASSETS (acc. 241-284-294) 16 0 0 IV. FINANCIAL ASSETS 1.Investments in subsidiaries (acc. 261-2961) 17 1,571,559 1,571,559 2.Loans granted to entities in the group (acc. 2671+2672- 18 7,456,339 6,300,344 2964) 3. Shares in associates and jointly controlled entities (acc. 19 0 0 262+263-2962) 4. Loans granted to associates and jointly controlled 20 0 0 entities(acc. 2673+2674-965) 5. Other long term investments (acc. 265+266-2963) 21 0 0 6. Other loans (acc. 2675*+2676*+2677+2678*+2679*-2966*- 22 0 0 2968*) TOTAL (rd. 17 la 22) 23 9,027,898 7,871,903 FIXED ASSETS - TOTAL (rd. 06+15+16+23) 24 11,673,173 10,433,979 B. CURRENT ASSETS I. INVENTORIES 1. Raw materials and consumables (acc. 301+302+303+/- 308+321+322+323+328+351+358+381+/-388-391-392-3951- 25 0 0 3958-398) 2. Assets held for sale (acc. 311) 26 0 0 3. Production under execution (acc. 331+341+/-348*-393- 27 0 0 3941-3952) 4. Finished products and merchandise (acc. 327+345+346+347+/-348*+354+357+371+-378-3945-3946-3953- 28 0 0 3954-3957-397-4428) 5. Prepayments (acc. 4091) 29 0 0 TOTAL (rd. 25 la 29) 30 0 0 II.RECEIVABLES (Amounts to be cashed after a period greater

than one year must be shown separately for each item) 1. Trade receivables1 (acc. 2675*+2676*+2678*+2679*-2966*- 31 1,521,110 1,528,967 2968*+411+413+418-491)

6 5-7 Dimitrie Pompei Blvd, 5th Floor Part B, District 2, Bucharest Tel: (+40) 21.539.46.00, Fax: (+40) 21.310.06.05 J40/3315/2009, CUI RO 2695737 Share capital: 3.605.948,40 RON Email: [email protected]

2. Advances paid(acc. 4092) 32 8,425 8,410 3. Amounts receivable from group entities (acc. 451*-495) 33 18,176 29,100 4. Amounts receivable from associates and jointly controlled 34 0 0 entities (acc. 453-495*) 5. Claims resulting from derivatives transactions (acc. 465) 35 0 0 6. Other receivables (acc. 425+4282+431**+437**+4382+441**+4424+4428**+444**+445+ 36 272,259 362,698 446**+447**+4482+ 4582+461+473**-496+5187) 7. Subscribed capital and not paid (acc. 456-495*) 37 0 0 TOTAL (rd. 31 la 37) 38 1,819,970 1,929,175 III. SHORT-TERM INVESTMENTS (acc. 505+506+507+508-595- 39 0 0 596-598+5113+5114) IV. CASH AND BANK ACCOUNTS (acc. 40 54,877 116,490 5112+512+531+532+541+542) CURRENT ASSETS - TOTAL (rd. 30+38+39+40) 41 1,874,847 2,045,665 C. PREPAID EXPENSES (ct. 471) (rd. 43 + 44) 42 23,718 28,781 Short term portion (from acc 471*) 43 23,718 28,781 Long term portion (from acc 471*) 44 0 0 D. DEBTS: TO BE PAID IN A PERIOD OF UP TO ONE YEAR 1. Debenture loans, presenting separately from the issue of 45 272,466 109,294 convertible bond loans (acc. 161+1681-169) 2. Amounts owed to credit institutions (acc. 46 0 0 1621+1622+1624+1625+1627+1682+5191+5192+5198) 3. Advances collected for orders(acc. 419) 47 0 0 4. Trade payables ---- suppliers (acc. 401+404+408) 48 192,744 296,041 5. Bills to pay (acc. 403+405) 49 0 0 6. Debts from financial leasing operations (acc. 406) 50 0 0 7. Amounts owed to group entities(acc. 51 958,413 512,552 1661+1685+2691+451***) 8. Amounts owed to associates and jointly controlled entities 52 0 0 (acc. 1663+1686+2692+453***) 9. Liabilities resulting from operations with derivatives (acc. 53 0 0 465) 10.Other debts including tax and social security (acc. 1623+1626+167+1687+2693+421+422+423+424+426+427+4281 +431***+437***+4381+441***+4423+4428***+444***+446***+44 54 475,404 425,689 7***+4481+455+456***+457+4581+462+473***+509+5186+5193 +5194+5195+5196+5197) TOTAL (rd. 45 la 54) 55 1,899,027 1,343,576 E. NET CURRENT ASSETS/NET CURRENT LIABILITIES (rd. 41+43-55- 56 -463 730,870 73-76-79) F. TOTAL ASSETS LESS CURRENT LIABILITIES (rd. 24+56) 57 11,672,710 11,164,849 G DEBTS: TO BE PAID IN A PERIOD OF MORE THAN ONE YEAR . 1.Debenture loans, presenting separately from the issue of 58 2,724,660 2,732,340 convertible bond loans (acc. 161+1681-169) 2. Amounts owed to credit institutions (acc. 59 0 0 1621+1622+1624+1625+1627+1682+5191+5192+5198) 3. Advances collected for orders (acc. 419) 60 0 0 4. Trade payables ---- suppliers (acc. 401+404+408) 61 0 0 5. Bills to pay (acc. 403+405) 62 0 0 6. Debts from financial leasing operations (acc. 406) 63 0 0 7. Sume datorate entitatilor din grup (ct. 64 4,977,443 5,963,120 1661+1685+2691+451***)

7 5-7 Dimitrie Pompei Blvd, 5th Floor Part B, District 2, Bucharest Tel: (+40) 21.539.46.00, Fax: (+40) 21.310.06.05 J40/3315/2009, CUI RO 2695737 Share capital: 3.605.948,40 RON Email: [email protected]

8. Amounts owed to associates and jointly controlled entities 65 0 0 (acc. 1663+1686+2692+453***) 9. Liabilities resulting from operations with derivatives (acc. 66 0 0 4651) 10. Other debts including tax and social security (acc. 1623+1626+167+1687+2693+421+422+423+424+426+427+4281 +431***+437***+4381+441***+4423+4428***+444***+446***+44 67 391,677 339,350 7***+4481+455+456***+457+4581+462+473***+509+5186+5193 +5194+5195+5196+5197) TOTAL (rd. 58 la 67) 68 8,093,780 9,034,810 H. PROVISIONS 1. Provisions for employee benefits (acc. 1517) 69 0 0 2. Other provisions (acc. 1511+1512+1513+1514+1518) 70 0 0 TOTAL (rd. 69+70) 71 0 0 I. INCOME COLLECTED IN ADVANCE 1. Subsidies for investments (acc. 475)(row 73+74) 72 0 0 Short term portion (from acc 475*) 73 0 0 Long term portion (from acc 475*) 74 0 0 2.Deferred income(acc. 472) --- total (rows 70+71), which: 75 0 0 Short term portion (acc. 472*) 76 0 0 Long term portion (acc. 472*) 77 0 0 3. Income received in advance for assets transferred from 78 0 0 customers(acc. 478) Short term portion (from acc 478*) 79 0 0 Long term portion (from acc 478*) 80 0 0 TOTAL (rd. 72+75+78) 81 0 0 J. CAPITAL AND RESERVES I. CAPITAL 1. Subscribed capital paid (acc. 1012) 82 3,605,948 3,605,948 2. Subscribed capital unpaid (acc. 1011) 83 0 0 3. Subscribed capital representing financial liabilities2 (acc. 84 0 0 1027) 4. Adjustments of capital (acc. 1028) SOLD C 85 1,304,446 1,304,446 SOLD D 86 5. Other elements of equity (acc. 1027) SOLD C 87 0 0 SOLD D 88 TOTAL (rd. 82+83+84+85-86+87-88) 89 4,910,395 4,910,395 II. SHARE PREMIUM (acc. 104) 90 4,064,177 4,064,177 III. REVALUATION RESERVES(acc. 105) 91 1,555,744 1,555,744 IV. REZERVES 1. Legal reserves (acc. 1061) 92 24,479 24,479 2.Statutory or contractual reserves (acc. 1063) 93 0 0 3. Other rezerves (acc. 1058) 94 14,459 14,459 TOTAL (rd. 92 la 94) 95 38,938 38,938 Exchange difference on translating individual SOLD C 96 0 0 annual financial statements in a currency different from the presentation currency SOLD D 97 Functional(acc. 1072) Own shares(acc. 109) 0 0 Earnings related to own equity instruments(acc. 141) 0 0 Losses related to own equity instruments (acc. 149) 0 0 V. REPORTED RESULT, RETAINED EARNINGS EXCEPT SOLD C 101

8 5-7 Dimitrie Pompei Blvd, 5th Floor Part B, District 2, Bucharest Tel: (+40) 21.539.46.00, Fax: (+40) 21.310.06.05 J40/3315/2009, CUI RO 2695737 Share capital: 3.605.948,40 RON Email: [email protected]

FOR THE FIRST TIME ADOPTION OF IAS 29 (acc. 3,234,200 5,685,877 SOLD D 102 117) VI. REPORTTED RESULT FROM ADOPTION FOR THE SOLD C 103 FIRST TIME OF IAS 29 (acc. 118) SOLD D 104 1,304,446 1,304,446 VII. PROFIT OR LOSS AT THE END OF REPORTING SOLD C 105 0 0 PERIOD (acc. 121) SOLD D 106 2,451,676 1,448,891 Distribution of profit (acc. 129) 107 0 0 EQUITY --- TOTAL (rd. 89+90+91+95+96-97-98+99-100+101- 108 3,578,931 2,130,039 102+103-104+105-106-107) Public patrimony (ct. 1026) 109 0 0 EQUITY --- TOTAL (rd. 108+109) 110 3,578,931 2,130,039

STATEMENT OF COMPREHENSIVE INCOME As of 30.06.2017

30-Iun-16 30-Iun-17

Revenues from services rendered - - Other revenues 34,022 18,289 Total revenues 34,022 18,289

Third party services (314,083) (581,492) Personnel expenses (550,729) (594,734) Other operating expenses (63,449) (127,921)

Fair value gains / (losses) from investment properties, net - -

Total operating expenses (928,261) (1,304,147)

Operating result (894,239) (1,285,858)

Financing costs (213,235) (258,431) Financing income 103,141 100,098 Foreign exchange expense, net (18,734) (4,700) Other financial items, net - -

Financial result (128,828) (163,033)

Gross profit (1,023,067) (1,448,891)

Current income tax expense - - Deferred income tax expense - - Total income tax - -

Net profit / (loss) for the period (1,023,067) (1,448,891)

Other comprehensive income

Total comprehensive income (1,023,067) (1,448,891)

9 5-7 Dimitrie Pompei Blvd, 5th Floor Part B, District 2, Bucharest Tel: (+40) 21.539.46.00, Fax: (+40) 21.310.06.05 J40/3315/2009, CUI RO 2695737 Share capital: 3.605.948,40 RON Email: [email protected]

PROFIT AND LOSS STATEMENT As of 30.06.2017

Reporting period No. Denumirea indicatorilor 30.06.2016 30.06.2017 row. Unaudited Unaudited A B 1 2 1 Net turnover (rows 02+03-04+05) 1 16,785 18,289 Sold production (acc. 701+702+703+704+705+706+708) 2 16,785 18,289 Income from sale of goods (acc. 707) 3 0 0 Granted trade discounts (acc. 709) 4 0 0 Income from subsidies related to turnover (acc. 7411) 5 0 0 2 Income related to cost of product inventories SOLD C 6 0 0 (acc. 711) SOLD D 7 3 Income from asset production and real estate investments 8 0 0 (rows 09+10) 4 Income from production of tangible and intangible assets 9 0 0 (acc. 721+722) 5 Income from real estate investments production (acc. 725) 10 0 0 6 Income from current assets ( or disposal groups ) held for sale 11 0 0 (acc. 753) 7 Income from tangible and intangible assets reevaluation 12 0 0 (acc. 755) 8 Income from real estate investments (acc. 756) 13 0 0 9 Income from biological assets and agricultural products 14 0 0 (acc. 757) 10 Income from subsidies (acc. 7412 + 7413 + 7414 + 7415 + 7416 15 0 0 + 7417 + 7419) 11 Other operating income (acc. 758+7419) 16 17,237 0 of which, income from investment subsidies (acc 7584) 17 0 0 OPERATING INCOME -- TOTAL (rows 01+06- 18 34,022 18,289 07+08+11+12+13+14+15+16) 12 a) Expenses related to raw materials and consumables(acc. 19 326 4,168 601+602-7412) Other expenses with materials (acc. 603+604+608) 20 8,557 17,101 b) Other external expenses (energy and water) (acc. 605- 21 5,805 7,986 7413) c) Expenses related to stocks (acc. 607) 22 0 0 Received trade discounts (acc. 609) 23 0 0 13 Staff expenses (rows 25+26), in which: 24 550,729 594,734 a) Wages and salaries (acc. 641+642+643+644+7414) 25 456,652 492,487 b)Expenses related to social security and welfare (acc. 645- 26 94,077 102,247 7415) 14 a) Value adjustments on tangible and intangible assets, investment properties and biological assets measured at 27 32,215 90,762 cost (rows 28-29) a.1) Expenses (acc. 6811+6813+6816+6817) 28 32,215 90,762 a.2) Income(acc. 7813+7816) 29 0 0 b) Value adjustments on assets (rows 30-31) 30 0 0 b.1) Expenses (acc. 654+6814) 31 0 0 b.2) Income (acc. 754+7814) 32 0 0 15 Other operating costs (rows 34 to 42) 33 330,629 589,396

10 5-7 Dimitrie Pompei Blvd, 5th Floor Part B, District 2, Bucharest Tel: (+40) 21.539.46.00, Fax: (+40) 21.310.06.05 J40/3315/2009, CUI RO 2695737 Share capital: 3.605.948,40 RON Email: [email protected]

15.1) Expenses related to external supply (acc.611+612+613+614+621+622+623+624+625+626+627+628- 34 308,378 573,754 7416) 15.2) Expenses related to taxes, duties and similar; expenses representing transfers and contributions due under special 35 19,107 5,719 regulations (acc. 635+6586) 15.3) Expenses with environmental protection (acc. 652) 36 0 0 15.4) Expenses related to assets ( or disposal groups ) held for 0 37 0 sale (acc. 653) 0 15.5) Expenses from revaluation of tangible and intangible 38 0 0 assets (acc. 655) 15.6) Expenses from real estate investments (acc. 656) 39 0 0 15.7) Expenses related to biological assets and agricultural 40 0 0 products (acc. 657) 15.8) Expenses related to disasters and other similar events 41 0 0 (acc. 6587) 15.9) Other expenses (acc. 6581+6582+6583+6585+6588) 42 3,144 9,924 Value adjustments for provisions (rows 44-45) 43 0 0 -- Expenses (acc. 6812) 44 0 0 -- Income (acc. 7812) 45 0 0 OPERATING COSTS -- TOTAL (rows 19 to 22-23+24+27+30+33+43) 46 928,261 1,304,147 OPERATING PROFIT OR LOSS 47 0 0 -- Profit (rows 18-46) -- Loss (rows 46-18) 48 894,239 1,285,858 16 Income from shares held in subsidiaries (acc. 7611) 49 0 0 17 Income from shares held in associated entities (ct. 7612) 50 0 0 Income from shares held in associated and jointly controlled 18 51 0 0 entities (acc. 7613) Income from operations with securities and other financial 19 52 0 0 instruments (acc. 762) 20 Income from operations with derivatives (acc. 763) 53 0 0 21 Income from exchange rate differences (acc. 765) 54 203,511 309,705 22 Income from interest rates (acc. 766*) 55 103,141 100,098 -- out which revenues from group entities 56 103,137 97,909 23 Income from subsidies for interest due (acc 7418) 57 0 0 24 Income from short term investments (acc 7617) 58 0 0 25 Other financial income (acc. 7615+764+767+768) 59 0 0 FINANCIAL INCOME -- TOTAL (rows 60 306,652 409,803 49+50+51+52+53+54+55+57+58+59) 26 Value adjustments on financial assets and financial 0 61 0 investments held as current assets (rows 62-63) -- Expenses (acc. 686) 62 0 0 -- Income (acc. 786) 63 0 0 Expenses on operations with securities and financial 27 64 0 0 instruments (acc. 661) 28 Expenses related to operations with derivatives(acc. 662) 65 0 0 29 Expenses regarding interest rates (acc. 666*-7418) 66 213,235 258,431 -- out which expenses in relation to group entities 67 46,574 85,265 30 Other financial expenses (acc. 663+664+665+667+668) 68 222,245 314,405 FINANCIAL EXPENSES -- TOTAL (rows 61+64+65+66+68) 69 435,480 572,837 FINANCIAL PROFIT OR LOSS: 70 0 0 -- Profit (rows 60-69)

11 5-7 Dimitrie Pompei Blvd, 5th Floor Part B, District 2, Bucharest Tel: (+40) 21.539.46.00, Fax: (+40) 21.310.06.05 J40/3315/2009, CUI RO 2695737 Share capital: 3.605.948,40 RON Email: [email protected]

-- Loss (rows 69-60) 71 128,828 163,034 TOTAL INCOME (rows 18+60) 72 340,674 428,092 TOTAL EXPENSE (rows 46+69) 73 1,363,741 1,876,983 31 GROSS PROFIT OR LOSS 0 74 0 -- Profit (rows 72-73) -- Loss (rows 73-72) 75 1,023,067 1,448,891 32 Current income tax (acc. 691) 76 0 0 33 Deferred income tax (acc. 692) 77 0 0 34 Deferred income tax assets (acc. 792) 78 0 0 35 Other taxes not shown above (acc. 698) 79 0 0 36 NET PROFIT OR LOSS FOR THE REPORTING PERIOD: 80 0 0 -- Profit (rows 74-76-77+78-79) -- Loss (rows 75+76+77-78+79) 81 1,023,067 1,448,891 (rows 76+77+79-74-78)

STATEMENT OF CHANGES IN EQUITY

December December June 2017 June 2016 2015 2016 Share capital 3.605.948 3.605.948 3.605.948 3.605.948 Share capital adjustment 1.304.446 1.304.446 1.304.446 1.304.446 Share premiums 4.064.177 4.064.177 4.064.177 4.064.177 Revaluation reserves 1.549.831 1.549.831 1.555.744 1.555.744 Other reserves 38.938 38.938 38.938 38.938 Retained earnings (2.842.749) (3.234.200) (4.538.647) (6.990.323) Profit/loss (391.451) (1.023.067) (2.451.676) (1.448.891) Distributed profit Total equity 6.024.695 5.001.627 3.578.931 2.130.039

CASH-FLOW STATEMENT

Financial exercise 30.06.2016 30.06.2017 Element name Unaudited Unaudited A 2 2 Cash flow from operating activities Profit after tax and extraodrinary items (1.023.067) (1.448.891) Adjustmemts for: Depreciation and value adjustments related to tangible assets 28.171 90.696 Depreciation and value adjustments related to intangible assets 346 66 Net movements in other provisions Interest expenses 213.235 258.431 Interest income (103.141) (100.098)

12 5-7 Dimitrie Pompei Blvd, 5th Floor Part B, District 2, Bucharest Tel: (+40) 21.539.46.00, Fax: (+40) 21.310.06.05 J40/3315/2009, CUI RO 2695737 Share capital: 3.605.948,40 RON Email: [email protected]

Incoma/expenses retaletd to exchange rate differences (16.071) 9.844 Operating profit before changes in working capital (900.527) (1.189.952)

Decrease/increase of trade and other receivables 2.596.783 (109.205) Decrease/increase of commercial and other debts 427.848 (323.464) Decrease in advance payments (6.378) (5.063) Paid income tax - - Net cash from operating activities 2.111.726 (1.627.685) Cash flows from investment activities Payments for the purchase of tangible assets (633..257) (7.563) Payments for the purchase of intangible assets - - Grant/reimbursement of loans (942.969) 1.379.992 Receipts from the sale of financial assets - - Payments for the purchase of shares - (171.097) Interest earned - 46.345 Net cash from investing activities (1.531.114) 1.247.677

Cash flows from financing activities Received loans 2.008.325 5.451.647 Loans reimbursements (2.456.261) (4.674.705) Paid dividents Paid interest (135.881) (335.321) Net cash flow from financing activities (583.818) 441.621 Net decrease/increase in cash and cash equivalents 2.794 61.614

Cash and cash equivalents at the begining of the financial year 26.737 54.877 Cash and equivalents at the end of the financial year 29.530 116.491

The financial statements were not audited as of 30.06.2017.

13 5-7 Dimitrie Pompei Blvd, 5th Floor Part B, District 2, Bucharest Tel: (+40) 21.539.46.00, Fax: (+40) 21.310.06.05 J40/3315/2009, CUI RO 2695737 Share capital: 3.605.948,40 RON Email: [email protected]

EXPLANATORY NOTES AT THE FINANCIAL INTERIM INDIVIDUAL STATEMENTS for the 6 month period ended on 30 June 2017:

NOTE 1: FIXED ASSETS

- lei - Gross Value ** Impairments*** ( depreciations and impairments for depreciation or loss of value )

Impairment Fixed assets element* s registered Reductions Balance as Transfers Balance as Balance as during the Balance as or at Increase and other at at financial at restatemen 01.01.2017 decreases 30.06.2017 01.01.2017 exercise 30.06.2017 ts

Establishment expenses 0 0 0 0 0 0 0 0 Development and research expenses 0 0 0 0 0 0 0 0 Other non tangible assets 2,343 0 0 2,343 2,223 65 2,288 Licenses, patterns 0 0 0 0 0 0 0 0 Advance payments and other non current assets 0 0 0 0 0 0 0 0

Total non tangible assets 2,343 0 0 2,343 2,223 65 0 2,288 Land 1,925,426 0 0 1,925,426 0 0 0 0 Buldings and special constructions 0 0 0 0 0 0 0 0 Equipments 0 0 0 0 0 0 0 0 Measure and control equipment 0 0 0 0 0 0 0 0 Transportation means 736,829 7,563 0 744,392 92,031 73,697 0 165,728 Furniture and office appliances 135,134 0 0 135,134 60,203 16,999 0 77,202 Advance payments and current assetis in progress 0 0 0 0 0 0 0 0 Total tangible assets 2,797,389 7,563 0 2,804,952 152,234 90,696 0 242,930 Participation titles 1,571,559 0 1,571,559 0 0 0 0 Financial assets 1,571,559 0 0 1,571,559 0 0 0 0 Total fixed assets 4,371,291 0 0 4,378,854 154,457 90,761 3,698 245,218

GROSS VALUE OF ASSETS

Asset element Balance as of 01 January 2017 Balance as of 30 June 2017

Non tangible assets 2.343 2.343 Tangible assets 2.797.389 2.804.952 Financial assets 1.571.559 1.571.559 TOTAL NET VALUE 4.371.291 4.378.854

14 5-7 Dimitrie Pompei Blvd, 5th Floor Part B, District 2, Bucharest Tel: (+40) 21.539.46.00, Fax: (+40) 21.310.06.05 J40/3315/2009, CUI RO 2695737 Share capital: 3.605.948,40 RON Email: [email protected]

Tangible Assets

The tangible assets of the company as at 30 June 2017 contain a land located in Mogosoaia locality, obtained following the merger by absorbtion process ended as of 31 December 2010.

Financial assets

As at 30 June 2017, the Company owns participation titles in the following entities:

Entity Country of Object of Percentage Cost Provision Net value registration activity owned Codlea Alpha Romania Renewable 95% 950 950 Solar energy production NQE Zalokosta Romania Renewable 99% 990 990 (fost Codlea Unu energy Solar) production Codlea Bravo Romania Renewable 99% 990 990 Solar energy production NQE Hydro (fost Romania Renewable 95.24% 1.000 1.000 Deal Solar) energy production NQE Solar Romania Real Estate 83.33% 135.767 135.767 Habitat (fost Development Nqe Aqua) Deal Properties Romania Renewable 24.62% 1.089.650 1.089.650 SRL energy production NQE Central Romania Real Estate 51% 510 510 Habitat Development NQE Solar 2 Romania Real Estate 95.2% 1.190 1.190 Development Greek Greece Agriculture 88.36% 332.751 332.751 Production of Olimpus

Vospolimno Greece Activitati ale 100% 6.771 6.771 Holdings holdingurilor NQE Romania Real Estate 99% 990 990 Developments Development Total 1.571.559 1.571.559

NOTE 2: PROVISIONS

Balance as at 01 January Transfer in the Transfer from Balance as at Provision 2017 account the account 30 June 2017

Provisions for financial assets - - Total - -

15 5-7 Dimitrie Pompei Blvd, 5th Floor Part B, District 2, Bucharest Tel: (+40) 21.539.46.00, Fax: (+40) 21.310.06.05 J40/3315/2009, CUI RO 2695737 Share capital: 3.605.948,40 RON Email: [email protected]

NOTE 3: PROFIT DISTRIBUTION

As at 30 June 2015, respectively 30 June 2016, the Company registered the following results:

Financial exercise ended Financial exercise ended as ast as at Profit distribution 30 June 2016 30 June 2017

Retained earnings to be distributed at the beginning of the financial year Net/to be distributed Profit/(loss) (1.023.067) (1.448.891) - legal reserve - Accounting losses cover Not distributed Profit/(loss), retained earnings not distributed at the end of the financial exercise (1.023.067) (1.448.891)

NOTE 4: ANALYSIS OF THE OPERATING RESULT

Financial exercise Financial exercise ended as ast ended as at 30 June 2016 30 June 2017

1. Net turnover 16.785 18.289

2. Cost of sold goods and services supplied, of which (3 + 4 + 5) (928.261) (1.304.147) 3. Expenses related to the core activity (928.261) (1.304.147) 4. Expenses related to secondary activities 5. Indirect expenses related to production

6. Gross result related to the net turnover (1 - 2) (911.476) (1.285.858)

7. Selling expenses 8. General and administration expenses 9. Other operating revenues 17.237 0

10. Operating result (6 - 7 - 8 + 9) (894.239) (1.285.858)

NOTE 5: RECEIVABLES AND LIABILITIES STATEMENT

Receivables

Liquidity term for the Balance as Balance as period ended as at at 01 Receivables at 30 June 30 June 2017 January 2017 Below 1 2017 Over 1 year year

Trade receivables 1 Trade receivables –affiliates/other related 18.176 29.100 29.100 - parties 2 Trade receivables –third parties 1.521.110 1.528.967 1.528.967 -

3 Total Trade receivables 1.539.286 1.558.067 1.558.067 - 4 Depreciation impairments for trade - receivables 5=3-4 Trade receivables, net 1.539.286 1.558.067 1.558.067 -

16 5-7 Dimitrie Pompei Blvd, 5th Floor Part B, District 2, Bucharest Tel: (+40) 21.539.46.00, Fax: (+40) 21.310.06.05 J40/3315/2009, CUI RO 2695737 Share capital: 3.605.948,40 RON Email: [email protected]

Other receivables 6 Amounts to be received from affiliates - 7 Amounts to be received from entities with participation interests and other related - parties 8 Other receivables 202.907 293.331 293.331 -

9 Total other receivables 202.907 293.331 293.331 - 10 Impairments for other receivables 11=9- Other receivables, net - 10 12 Subscribed and not paid up share capital - -

13 Total trade receivables and other 1.742.193 1.851.398 1.851.398 - receivables

Trade receivables are not interest bearing and generally have a payment term of 30-60 days. Trade receivables outstanding at 30 June 2017, will be colected during 2017.

Liabilities

Liquidity term for the period Balance as ended as at at 01 Balance as at Liabilities 30 June 2017 January 30 June 2017 Below 1 Over 5 2017 1 - 5 Years year years

1 Debenture loans 2,997,126 2.841.634 109.294 2.732.340 - 2 Amounts due to credit institutions - - 3 Advance payments received for - orders 4 Trade liabilities – suppliers affiliates - and other related parties 5 Trade liabilities – third party suppliers 690,859 744.094 404.744 339.350 - 6=3+4+5 Total trade liabilities 690,859 744.094 404.744 339.350 -

7 Commerce liabilities - 8 Amounts due to affiliates 5,935,856 6.475.672 512.552 5.963.120 - 9 Amounts due to entities with participation interests and other - - related parties 10 Other liabilities including fiscal debts and other debts related to social 368,966 316.987 316.987 -- insurances 11=7+8+9+ 6,304,822 6.792.659 829.539 5.963.120 10 Total

NOTE 6: ACCOUNTING PRINCIPLES, POLICIES AND METHODS

• Significant accounting principles

The financial statements for the period ended as at 30 June 2017 have been prepared in accordance with the following accounting principles:

On going concern principle

The company will continue to operate normally in the foreseeable future without becoming unable to continue the activity or to significantly reduce it.

17 5-7 Dimitrie Pompei Blvd, 5th Floor Part B, District 2, Bucharest Tel: (+40) 21.539.46.00, Fax: (+40) 21.310.06.05 J40/3315/2009, CUI RO 2695737 Share capital: 3.605.948,40 RON Email: [email protected]

Consistency principle

Application of the same rules, methods, rules for assessing, recording and presentation in the accounts of assets, ensuring comparability of the financial information.

Prudence principle

In preparing the financial statements there were taken into account: • All adjustments due to depreciation in valuation of assets; • All foreseeable liabilities and potential losses that arose during the financial period ended.

Matching principle

All revenues and expenses of the exercise were taken into account, without taking into consideration the date of receipt or payment.

Valuation of asset and liability items

In order to establish the total value corresponding to a separate balance sheet position the individual value of the asset or liability element was determined.

Offsetting principle

The values of the assets were not balanced against the values of the liability items, ie income and expenses.

Substance over form principle

The information presented in the financial statements reflect the economic reality of events and transactions, not only their legal form.

The financial statements comprise the balance sheet, income statement, statement of changes in equity structure, cash flow statement and notes to the financial statements.

• Basis of preparation of financial statements a) General information

These individual financial statements have been prepared in accordance with the requirements of Order no. 2844/2016 for the approval of accounting regulations in accordance with International Financial Reporting Standards (hereinafter "IFRS"), applicable to companies whose securities are admitted to trading on a regulated market and subsequent amendments.

Date of Transition to International Financial Reporting Standards was 1 January 2013.

The accounting records on which these financial statements have been prepared are made in lei ("RON") , at the historical cost, unless the fair value was used, according to the accounting policies of the Company and in accordance with OMF 1286/2015.

These financial statements are presented in lei ("RON") unless specifically not mentioned another currency used. b) Use of accounting estimates

For preparation of financial statements, the Company's management makes certain estimates and assumptions that affect the reported amounts of assets and liabilities at the balance sheet date and revenues and expenses reporting period. Actual results could differ from those estimates. Estimates are used, among other things, registration: provisions for doubtful debts, inventory impairment, depreciation / amortization, restructuring, tax, litigation, and other risks and expenses. These estimates are based, where appropriate, on the rules and methodologies issued by the competent authorities, in force when preparing financial statements.

18 5-7 Dimitrie Pompei Blvd, 5th Floor Part B, District 2, Bucharest Tel: (+40) 21.539.46.00, Fax: (+40) 21.310.06.05 J40/3315/2009, CUI RO 2695737 Share capital: 3.605.948,40 RON Email: [email protected]

Effect of change of accounting estimates is calculated prospectively and is included in the determination of net earnings related: to the period in which the change was made, if it is the only period affected; period in which the change was made and subsequent periods if the change affects them all c) Foreign exchange

The transactions made in foreign currencies are translated into RON at the exchange rate ruling at the transaction date.

The exchange rate used for converting balances denominated in foreign currency at 30 June 2017 was 1 EUR = 4.5539 RON.

Monetary assets and liabilities denominated in foreign currency (cash and other similar items, such as bank deposits, receivables and payables in foreign currencies) should be evaluated and reported using the exchange rate of the National Bank of Romania valid on the date of closing the financial exercise. Exchange rate differences, favorable or unfavorable, between the date of registration of foreign currency debts or liabilities or the rate at which were reported in previous financial statements and the exchange rate of the closing date of the financial exercise, are recorded in financial income or expense, respectively. d) Comparative statements

The financial statements as at 30 June 2017 are compatible with the financial statements prepared on 30 June 2016. e) Intangible assets

Concessions, patents, licences, trademarks and similar rights and assets

Concessions, patents, licences, trademarks and similar rights and assets are recorded in the accounts of intangible assets in the amount of intake or acquisition cost, respectively. In this situation assimilate input value fair value.

Concessions received are reflected as intangible assets when the concession contract establishes a length and a value determined for the concession. Depreciation concession will be recorded during its use, established according to contract.

Patents, licenses and other intangible assets are amortized using the straight-line method for a period of 5 years. f) Tangible assets

Current assets are assets generating future economic benefits and held for more than one year. Land company are carried at revalued amount, reduced by the loss of value adjustments recorded.

On 31 December 2016, the Company recorded a valuation of land, in accordance with OMF 1286/2015 compiled by SC EURO VALUE PROPERTIES SRL, authorized independent evaluator. Evaluation of tangible assets (land) was achieved by market value method.

Decreasing the carrying amounts of land revalued were recorded in equity to revaluation reserves.

The initial cost of property and equipment consists of the purchase price, including import duties and non- recoverable purchase taxes and any costs directly attributable to bringing the asset to location and operating conditions. Expenditure incurred after the asset has been put into operation, such as repairs and maintenance and administrative costs, are normally recorded in the income statement in the period in which they occurred. In case it can be demonstrated that these expenses resulted in an increase in future economic benefits expected to be obtained from the use of an item of fixed assets initially valued over performance standards, the expenditure is capitalized as additional cost.

19 5-7 Dimitrie Pompei Blvd, 5th Floor Part B, District 2, Bucharest Tel: (+40) 21.539.46.00, Fax: (+40) 21.310.06.05 J40/3315/2009, CUI RO 2695737 Share capital: 3.605.948,40 RON Email: [email protected]

The initial cost of a tangible can be included initially estimated dismantling costs and relocation of to deregistration, as well as restoring the site on which it is positioned restraint, when such amounts can be estimated reliably and related entity has an obligation dismantling, removal and restoration of tangible fixed assets of the site. The expected costs of dismantling and moving tangible fixed assets, and those with site restoration are recognized in current asset value, in correspondence with an allowance account.

Economic lifetime is the period in which an asset is expected to be available for use by an entity or the number of units produced what are expected to be obtained by using asset.

Depreciation is the systematic allocation of the depreciable amount of an asset over its remaining useful life. The life and depreciation method are reviewed periodically, so there is a consistent expectations regarding the economic benefits of such assets.

Land is not depreciated as it is deemed to have an indefinite life.. g) Financial assets

The financial assets include shares in affiliated entities, loans granted to affiliated entities, participating interests, loans granted to entities which the company is linked by virtue of participating interests and other investments held as fixed assets and other loans.

The financial assets are initially recorded at cost or acquisition value as determined by their contract. The financial assets are subsequently recorded at the entry value less value adjustments for impairment. h) Trade receivables

Trade receivables are recognized and carried at original invoice amount less valuation allowances for uncollectible amounts. Adjustments for impairment is established when there is evidence that the Company will not be able to collect receivables originally agreed maturity. The Company reviews its trade receivables recorded a specific provision to clients that the company is in dispute. i) Cash and cash equivalents

Cash and cash equivalents consist of cash, bank accounts, short-term bank deposits, checks and notes being deposited to banks being recorded at cost. j) Loans

Short and long term loans denominated in foreign currencies are initially recorded in the reporting currency (leu), applying the foreign currency amount the exchange rate between the reporting currency and foreign currency at the transaction date. The short-term long-term loans is classified in the "debt to be paid within a period of up to one year" and included together with interest accrued to the balance sheet date in "Amounts owed to credit institutions" under current liabilities. k) Liabilities

Commercial obligations are recorded at cost, which represents the value of the obligation will be paid in future for goods and services received, whether or not billed to the Company. l) Provisions for risks and expenditure

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation and duty can be estimated reliably. The provision for taxes is constituted for payment amounts to the state budget, given that those amounts do not appear reflected as a liability in the relationship with the state.

20 5-7 Dimitrie Pompei Blvd, 5th Floor Part B, District 2, Bucharest Tel: (+40) 21.539.46.00, Fax: (+40) 21.310.06.05 J40/3315/2009, CUI RO 2695737 Share capital: 3.605.948,40 RON Email: [email protected]

Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate of Management in this regard. Where to settle an obligation is no longer probable that an outflow of resources, provision must be canceled by resuming revenue. m) Share capital

The company recognizes changes in the share capital only after their approval by the General Meeting of Shareholders. n) Legal reserve

In accordance with the legislation in Romania, companies must assign a value equal to at least 5% of profit before tax in legal reserves until they reach 20% of the share capital. When that has been achieved. The Company may make additional allocations depending on their needs. o) Revaluation reserve

The revaluation reserves were initially established in accordance with HG 1553/2003, in order to reflect the surplus resulting from the revaluation of fixed assets. The last revaluation was performed by the Company on 31 December 2014, in order to bring the value of land owned by the Company at their fair value. According to the Ministry of Public Finance Order no. 1286/2015, land evaluation was performed by an independent certified appraiser . p) The result of period

All the elements of nature income and expenses recognized in the current period are included in determining net result of financial year. q) Dividends

Dividends are recognized as a liability in the period in which their distribution is approved. Distributions are made after approving the financial statements. r) Taxes and fees

The Company recorded current income tax in accordance with Romanian legislation in force at the date of the financial statements. Debts relating to taxes are recorded in the period to which it relates.

Calculation of current tax is based on the results reported in the income tax declaration drawn up based on the Company's financial statements, prepared in accordance with Romanian accounting standards and adjusted for certain items according to the legislation.

Current income tax is calculated as a percentage of accounting profit obtained under Romanian legislation, adjusted for certain positions by tax legislation (with deductible expenses and tax deductible expenses or taxable income and taxable income) at a rate of 16%.

For current liabilities (legal or constructive) relating to payment of debts to the state and other local authorities, resulting from past events, for which extinction is likely to be needed an outflow of resources or a reduction of receivables that affect the economic benefits are recognized provisions for taxes if a reliable estimate can be made of the value of these obligations. s) Financial instruments

Financial instruments used by the Company consist primarily of cash, term deposits, receivables, payables and amounts owed to credit institutions. The instruments of this type are evaluated according to specific accounting policies presented in Note 6 "principles, policies and accounting methods".

21 5-7 Dimitrie Pompei Blvd, 5th Floor Part B, District 2, Bucharest Tel: (+40) 21.539.46.00, Fax: (+40) 21.310.06.05 J40/3315/2009, CUI RO 2695737 Share capital: 3.605.948,40 RON Email: [email protected]

t) Revenues

Revenues are recorded when the significant risks and rewards of owning the goods are transferred to the customer's property. The amounts representing revenues do not include sales tax (VAT), but include commercial discounts granted

Revenues from services are recognized in the period in which they were provided in correspondence with the stage of completion. u) Operating expenses

Operating expenses represent amounts paid or payable, net of VAT, caused by construction activity basis and are recognized in the period to which it relates. v) Financial expenses

Financial expenses comprise interest on loans contracted for the financial year in progress, and exchange rate differences. w) Borrowing costs

Interest expenses are recognized in the income statement in the period to which it relates. x) Related parties

They are considered related parties those associates who have by ownership, by contractual rights through family relationships or otherwise, ability to control, direct or indirect, or influence significantly the other part. ( Note 10 (b)) y) Correction of accounting errors

According to OMF Order 1286/2015 with subsequent modifications, prior period errors are omissions and misstatements in the financial statements of the Company for one or more prior periods arising from mistake to use, or not to use, credible information that was available at the time the financial statements for those periods were approved for issue. Such errors include the effects of mathematical mistakes, mistakes of application of accounting policies, ignorance or misinterpretation of events. Correcting errors in accounting is performed by the Company on account of retained earnings and recorded in the annual financial statements. z) Events after the balance sheet date

Events after the balance sheet date that provide additional information about the Company's position at the balance sheet date (events which lead to the adjusting the financial statements) are reflected in the financial statements. Events after the balance sheet date which are not adjusting the financial statements are presented in notes if they are significant. aa) Debt and Contingent liabilities

A contingent liabilities is : • a possible obligation that arises from past events prior to balance date and whose existence will be confirmed only after the appearance or non-appearance of one or more uncertain future events that may not be entirely under the control of the Company; or • obligation that arises from past events prior to balance date, but is not recognized because: • is not sure outflow of resources will be required to settle the debt; or amount of debt can not be evaluated with sufficient reliability. Contingent liabilities are not recognized in the financial statements. They are disclosed unless the possibility of an outflow of resources embodying economic benefits is remote. A contingent asset is not recognized in the financial statements; This is shown when an entry is probable that future economic benefits.

22 5-7 Dimitrie Pompei Blvd, 5th Floor Part B, District 2, Bucharest Tel: (+40) 21.539.46.00, Fax: (+40) 21.310.06.05 J40/3315/2009, CUI RO 2695737 Share capital: 3.605.948,40 RON Email: [email protected]

bb) Going concern

These financial statements have been prepared on a going concern basis which assumes that the Company will continue in the foreseeable future.

On 30 June 2017, the Company recorded a loss in value of 1.448.891 lei.

Management believes that the support provided by shareholders and cashing in the trade receivables will be sufficient to allow the activity and debt repayment in the normal course of operating activity, without the need for substantial sales of assets, determined by external factors forced interruption of its operations or other similar actions .

NOTE 7: PARTICIPATIONS AND FINANCING SOURCES

Share Capital

Share capital structure of the Company as at 30 June 2017 is the following :

Nominal value in Percentage Shareholders No. Of shares RON Total value RON owned Green Southeast Europe 8.680.715 0,10 868.072 24.07% Investments Framecell Ltd 4.226.758 0,10 422.676 11.72% Legal persons 12.288.055 0,10 1.228.805 34.08% Physical persons 10.863.956 0,10 1.086.396 30.13% Total 36.059.484 3.605.949 100.00%

Share capital structure of the Company as at 1 January 2017 is the following :

Nominal value in Percentage Shareholders No. Of shares RON Total value RON owned Green Southeast Europe 8,260,715 0,10 826,072 22.91% Investments Framecell Limited 5,596,758 0,10 559,676 15.52% SSIF Ieba Trust 3,557,239 0,10 355,724 9.86% Cornerstone Investments 3,057,000 0,10 305,700 8.48% Limited Unstop Holdings Ltd 2,116,000 0,10 211,600 5.87% Other shareholders 13,471,772 0,10 1,347,177 37.36% Total 36,059,484 3,605,948 100.00%

As at 31 December 2010, S.C. Delta Fox Proprietati SRL, S.C. India Tango Proprietati SRL, S.C. Delta Papas SRL, S.C. Sierra Golf Proprietati SRL merged by absorbtion with Scapis SA.

The merger process took place according to the merger by absorbtion prospectus of SC Scapis SA with the companies S.C. Delta Fox Proprietati SRL, S.C. India Tango Proprietati SRL, S.C. Delta Papas SRL, S.C. Sierra Golf Proprietati SRL. as of 26 November 2010, to the General Associates Resolutions of S.C. Delta Fox Proprietati SRL, S.C. India Tango Proprietati SRL, S.C. Delta Papas SRL, S.C. Sierra Golf Proprietati SRL as of 30 December 2010 and the General Shareholders Meeting Resolution of S.C. Scapis SA as at 30 December 2010, compliant with Law 31/1990 regarding trading companies as further amended.

Following the merger, the assets and liabilities of the absorbed companies were transferred to the acquiring company, Scapis SA, the effective date of the merger being 31 December 2010.

In exchange for absorbing the assets and liabilities of the companies Delta Fox Proprietati SRL, India Tango Proprietati SRL, Delta Papas SRL, Sierra Golf Proprietati SRL, the absorbing company Scapis SA (subsequently renamed to Natura Quattuor Energia Holdings) issued on May 26, 2011 a total of 28,276,915 new shares with a nominal value of 0.1 RON / share.

23 5-7 Dimitrie Pompei Blvd, 5th Floor Part B, District 2, Bucharest Tel: (+40) 21.539.46.00, Fax: (+40) 21.310.06.05 J40/3315/2009, CUI RO 2695737 Share capital: 3.605.948,40 RON Email: [email protected]

The share capital increase following the merger process was amounted to 2.827.692 RON.

During 2015, the company has increased its share capital from 2.917.691,50 Ron to 3.605.948,40 Ron. Also, the share premium increase by 2.115.466 Ron.

NOTE 8: INFORMATION ON EMPLOYEES, MEMBERS OF THE ADMINISTRATION, MANAGEMENT AND SUPERVISION BODIES

Remuneration of the Board of Directors is made according to the Board of Directors resolution.

As at 30 June 2017 the Company has no obligations related to post retirement benefits to former directors or managers. No loans were granted to directors or executives. The members of the administration, management and supervision of the company did not receive loans.

During 2017 the Company had a total of 10 employees.

Manager remuneration expenses recorded during the years 2016 - 2017 are:

Financial exercise Financial exercise ended as at ended as at 30 June 2016 30 June 2017

Expenses related to Manager remuneration 184.716 184.976 Total 184.716 184.976

Financial exercise Financial exercise ended as at ended as at 30 June 2016 30 June 2017

Expenses related to employees remuneration 456.652 492.487 Expenses related to social securities 94.077 102.247 Total 550.729 594.734

NOTE 9: ANALYSIS OF THE MAIN ECONOMIC-FINANCIAL INDICATORS

30 iunie 2017 Current Liquidity 1.49 Debt-to-equity 4.24 Receivables turnover - customers - Liabilities turnover - suppliers - Intangible assets turnover - Total assets turnover -

NOTE 10: OTHER INFORMATION a) Information on the Company

S.C. Natura Quattuor Energia Holdings SA (“Company”) is a joint stock company established in 1990, with the social offices in Bucharest, 5-7 Dimitrie Pompei Bvd., District 2, Romania. The Company is registered with the Trade Registry under no. J40/3315/2009.

The Articles of Incorporation of S.C. NATURA QUATTUOR ENERGIA HOLDINGS SA stipulates under art. 5 “Field and object of activity of the Company“ that the main object of activity of the Company is Holding activities “ NACE Code 6420.

24 5-7 Dimitrie Pompei Blvd, 5th Floor Part B, District 2, Bucharest Tel: (+40) 21.539.46.00, Fax: (+40) 21.310.06.05 J40/3315/2009, CUI RO 2695737 Share capital: 3.605.948,40 RON Email: [email protected]

In 2012, the Company changed its name into S.C. NATURA QUATTUOR ENERGIA HOLDINGS SA, from formerly SC Scapis SA.

The Company is listed on the regulated market of Bucharest Stock Exchange, Standard category, under the trading symbol SCPS.

The shareholding structure as at 30 June 2017 is presented under Note 7. b) Information on affiliated and other related parties

Type of transactions with affiliates and other related parties

Contry of Name Type of relation Transaction type origin Tsamis Georgios Administrator Loans received Greece Argyrios Volis Administrator Loans received Greece Panagiotis Diamandis Shareholder Loans received Greece Stavros Nteventzis Shareholder Loans received Greece Savvopoulos Vasileios Shareholder Loans received Greece Framecell Limited Shareholder Loans received Cyprus Coronedo Limited Shareholder Loans received Cyprus Green Southeast Europe Shareholder Loans received Cyprus Codlea Alpha Solar Subsidiary Loans granted Romania NQE Zalokosta (Codlea Unu Solar) Subsidiary Loans granted Romania Codlea Bravo Solar Subsidiary Loans granted Romania NQE Hydro (Deal Solar) Subsidiary Loans granted Romania NQE Solar Habitat (Nqe Aqua) Subsidiary Loans granted Romania Deal Properties SRL Subsidiary Loans granted Romania NQE Central Habitat Subsidiary Loans granted Romania NQE Solar 2 Subsidiary Loans granted Romania Hygeia Soil Subsidiary Loans granted Romania Greek Production of Olympus Subsidiary Loans granted Greece Vospolimno Holdings Subsidiary Loans granted Greece NQE Developments Subsidiary Loans granted Greece

Amounts due and receivables from affiliates and other related parties

Amounts due to affiliates

Balance as at 30 June 2017 Coronedo Limited 13.662 Framecell Limited 480.973 Green Southeast Europe Investments 5.482.147 Stavros Nteventzis 479.282 Georgios Tsamis 0 Argyris Volis 19.608 Savvopoulos Vasileios (Bonds) 510.037 Total 6.985.709

Receivables from affiliates as at 30 June 2017:

During 2016-2017 the Company granted loans to companies in which it holds securities as participation interests in order for them to obtain work permits for development projects in renewable energy.

25 5-7 Dimitrie Pompei Blvd, 5th Floor Part B, District 2, Bucharest Tel: (+40) 21.539.46.00, Fax: (+40) 21.310.06.05 J40/3315/2009, CUI RO 2695737 Share capital: 3.605.948,40 RON Email: [email protected]

Name Type of Amount Interest transaction Vospolimno Holdings Loans granted 15.939 31.422 NQE Hydro (fost Deal Loans granted 1.312.069 186.379 Solar) Codlea Alpha Solar Loans granted 756.271 24.202 NQE Zalokosta (fost Loans granted 162.854 81.419 Codlea Unu Solar) Codlea Bravo Solar Loans granted 76.795 3.130

Deal Properties SRL Loans granted 2.300.117 446.100 Deal Properties Assignment of 928.467 receivables NQE Solar Habitat (fost Loans granted 32.777 -118 NQE Aqua) Greek Production of Loans granted 558.178 15.402 Olympus NQE Central Habitat Loans granted 11.585 649 NQE Solar 2 Loans granted 51.330 7.919 Hygeia Soil Loans granted NQE Developments Loans granted 446.200 1.913 TOTAL 6.652.582 798.416

c) Method for conversion of assets, liabilities, income and expenses from foreign currency to local currency

Description under Note 6, paragraph c) „Foreign exchange”

d) Informatii despre impozitul pe profit

Tax on income FINANCIAL EXERCISE

30 June 2016 30 June 2017

Accounting profit (1.023.067) (1.448.891) Deductions and taxable income Non deductible expenses 3.922 71.785 Tax losses carried forward (805.390) (2.305.598) Fiscal liability Taxable profit (1.824.535) (3.682.704) Tax on income Fiscal liability

Fiscal Loss (1.824.535) (3.682.704)

26 5-7 Dimitrie Pompei Blvd, 5th Floor Part B, District 2, Bucharest Tel: (+40) 21.539.46.00, Fax: (+40) 21.310.06.05 J40/3315/2009, CUI RO 2695737 Share capital: 3.605.948,40 RON Email: [email protected]

e) Total of sales

Sales on geographical regions:

Sales 30 June 2016 Sales 30 June 2017 Local sales 16.785 18.289 Total sales 16.785 18.289

f) Subsequent events

Not the case. h) Cash and bank accounts

30 June 2016 30 June 2017 Bank accounts RON 23.461 38.849

Bank accounts in currency 1.723 72.601 Cash in RON 4.234 4.926 Cash in currency 113 114 Total cash and bank accounts 29.530 116.490

NOTA 11. CONTINGENT LIABILITIES

(a) Litigations

On December 23, 2016, Natura Quatuor Energia Holdings filed a lawsuit against the Public Finance Division, District 3 and DGFRP Bucharest, requesting the annulment of some administrative tax documents related to the VAT reimbursement procedure done in 2015. The company requests VAT reimbursement in the amount of 321.948 lei. The first trial term was set on 31.05.2017. On June 28, 2017, the Bucharest Court admitted the company’s request and found that Natura Quattuor Energia Holdings has the right to be repaid with the sum of 321.648 lei. The decision of the court is subject to appeal within 15 days from the communication.

(b) Tax

The taxation system in Romania is in a phase of consolidation and harmonization with European legislation. However, there are still different interpretations of tax legislation. In some cases, the tax authorities may have different approaches to certain issues, the calculation of additional taxes and interest and penalties for late payment (0.06% per day from 1 January 2014). In Romania, tax periods remain open for tax control for 5 years. The Company's management believes that tax liabilities in these financial statements are appropriate.

(c) Transfer pricing

Fiscal legislation in Romania contains rules on transfer pricing between related parties since 2000. The current legislative framework defines the "market value" for transactions between related parties, and the methods of transfer pricing. As a result, it is expected that the tax authorities to initiate thorough verification of transfer prices, to ensure that the taxable and / or customs value of imported goods are not distorted by the effect of prices charged in relationships with affiliates. The Company can not assess the outcome of such review

(d) Fiscal legislation in Romania

Due to the fact that the tax law suffers frequently changes in Romania and because for some of the legal provisions there are several possible interpretations, in case of a tax audit, the way the company's management has interpreted these provisions may not correspond to the interpretations of supervisory bodies.

27 5-7 Dimitrie Pompei Blvd, 5th Floor Part B, District 2, Bucharest Tel: (+40) 21.539.46.00, Fax: (+40) 21.310.06.05 J40/3315/2009, CUI RO 2695737 Share capital: 3.605.948,40 RON Email: [email protected]

Although the management believes that taxes and fees were correctly calculated there is still the risk that the tax authorities have a different interpretation of the tax provisions in question and the effect of this difference of opinion on the accompanying financial statements to be materially.

NOTE 12. RISK MANAGEMENT

The main risks to which the Company is subject and the policies applied are detailed below. i) Market risk

Romanian economy is in transition, and in the current economic crisis there is uncertainty about the future evolution of policy and economic development. The Company's management can not predict the changes that will take place in Romania and their effects on the financial situation, the results of operations and cash flows of the Company. ii) Economic environment risk

The process of adjusting the risk-adjusted values held in international financial markets in 2008 - 2011 has affected their performance leading to heightened uncertainty about future economic developments.

The current global credit and liquidity crisis that began in mid-2008 led inter alia to a lower level and difficult access to capital market funding, lower liquidity levels in the Romanian banking sector, higher interbank lending rates, adjusting product prices. The significant losses suffered by global financial market could affect the Company's ability to obtain new loans and refinance its existing in conditions similar to those applied to earlier transactions.

Identification and evaluation of investments influenced by a market liquidity shortages, the determination of compliance with debt agreement and other contract covenants, evaluation of significant uncertainties, including the uncertainties related to the ability of the Company to continue to operate for a reasonable period of time following the lower demand, all bring their own challenges.

Company borrowers may also be affected by the liquidity crisis situations that might affect the ability to meet its current liabilities. Deteriorating operating conditions for borrowers may also affect the management of cash flow forecasts and assessment of the impairment of financial assets and financial assets. To the extent that information is available, management has reflected revised estimates of expected future cash flows in its impairment

Ongoing fears that deteriorating financial conditions could contribute in a later stage to a decrease in confidence prompted additional efforts are coordinated by governments and central banks to adopting special measures aiming to counter the growing aversion toward risk and restore normal functioning of the market.

The Company's management can not predict events that could have an effect on the industrial sector in Romania and consequently what effect it may have on these unconsolidated financial statements.

Management is unable to reliably estimate the effects on the Company's financial statements resulting from deteriorating financial market liquidity, impairment of financial assets influenced by the illiquid market conditions and high volatility of currency and financial markets and industrial. The Company's management believes to have taken all necessary measures to support growth in the Company’s activity under current market conditions by: • preparing strategies for managing the liquidity crisis and establishing measures to meet potential liquidity crisis; • constant monitoring of liquidity; forecasting of current liquidity; • obtaining a commitment from the shareholder to support the Company's operations in Romania. • daily monitoring of cash flows and its creditors impact assessment

28 5-7 Dimitrie Pompei Blvd, 5th Floor Part B, District 2, Bucharest Tel: (+40) 21.539.46.00, Fax: (+40) 21.310.06.05 J40/3315/2009, CUI RO 2695737 Share capital: 3.605.948,40 RON Email: [email protected]

iii) Foreign currency risk

Starting with 1 January 2004 Romania is no longer regarded as a hyperinflationary economic environment. However, there is a risk of depreciation of the value of net monetary assets denominated in USD. Currently there is no market outside Romania for the conversion of local currency into other currencies.

iv) Credit risk

Credit risk is the risk that a third party, part of a commercial relationship, does not fulfill an obligation, which will cause the other side to record a financial loss.

Receivables from the main activity are shown net, ie less allowance for doubtful debts. Credit risk related to receivables is limited due to the large number of clients in the portfolio of clients of the company. As a result, the Company's management believes that the Company does not present significant credit risk.

During its activity, the Company is exposed to credit risk, mainly due to credit, especially due to the current unstable environment generated by the global economic crisis and local management closely monitors credit risk exposure regularly. Credit risk related to trade receivables is low due to large number of clients that make up the customer base of the Company. Therefore, management estimates that no significant concentrations of credit risk. v) Liquidity risk

Liquidity risk, also called funding risk, is the risk that a company has difficulty in accumulating funds to meet commitments associated with financial instruments. Liquidity risk can occur due to the inability to quickly sell a financial asset at a value close to the fair.

The Company’s policy on liquidity is to maintain sufficient liquidity so that obligations can be paid on the due dates. Assets and liabilities are analyzed by contractual maturities for the remainder (note 5).

Volis Argyrios General Manager

SC PKF CONSULTOR TAX SRL 22 – AUTHORIZED LEGAL ENTITIES, CECCAR MEMBER(7873/2012)

29 5-7 Dimitrie Pompei Blvd, 5th Floor Part B, District 2, Bucharest Tel: (+40) 21.539.46.00, Fax: (+40) 21.310.06.05 J40/3315/2009, CUI RO 2695737 Share capital: 3.605.948,40 RON Email: [email protected]

STATEMENT

This statement is given according to art. 113 letter D para. 1(c) of NSC Regulation no. 1/2006, as amended, concerning the individual financial statements of NATURA QUATTUOR ENERGIA HOLDINGS S.A. prepared as at 30 June 2017 regarding the extent to which they present fairly, in all material respects, the financial position of NATURA QUATTUOR ENERGIA HOLDINGS S.A. as at 30 June 2017 and of its financial performance, cash flows for the financial semester ended on that date, as required by accounting rules in Romania, namely Accounting Law no. 82/1991 republished and NSC order no. 13/2011 approving the Regulation no. 4/2011, with subsequent amendments and the accounting policies described in the unconsolidated financial statements.

Confirm knowingly and confidently that the individual semester financial statements which comply with the regulations listed above, provide a fair and accurate image of the assets, financial position and profit and loss account of the Company and that the Board of Directors Report contains a correct analysis of the company’s performance development and a description of the principal risks and uncertainties specific to the activity run by the company.

Tsamis Georgios Melintescu Marius Administrator Financial Director

30 5-7 Dimitrie Pompei Blvd, 5th Floor Part B, District 2, Bucharest Tel: (+40) 21.539.46.00, Fax: (+40) 21.310.06.05 J40/3315/2009, CUI RO 2695737 Share capital: 3.605.948,40 RON Email: [email protected]

BOARD OF DIRECTORS REPORT CONSOLIDATED FINANCIAL STATEMENS SEMESTER I 2017

1. Analysis of the Group’s activity

1.1. Presentation of the Group

a) Identification data and description of core activities

NATURA QUATTUOR ENERGIA HOLDINGS SA is a joint stock company established in 1990, the social offices being registered in Bucharest, 5-7 Dimitrie Pompeiu Bvd., District 2, Romania. The Company is registered with the Trade Registry under no. J40/3315/2009. The Articles of Incorporation of NATURA QUATTUOR ENERGIA HOLDINGS SA stipulates under art. 5 “Field and object of activity of the company“ that the main field of activity is “Activities of holding companies“ CAEN Code 6420.

NATURA QUATTUOR ENERGIA HOLDINGS SA holds participation interests in teh following subsidiaries: S.C. CODLEA ALPHA SOLAR SRL is a limited liability company established in 2012, the head office being registered at Bucharest, 5-7. Dimitrie Pompeiu St., Sector 2, Romania. The company is registered at the Trade Register under number J40/ 8871/2012. The Establishment Deed of SC CODLEA ALPHA SOLAR SRL stipulates under art. 5 "Object of activity" that the core activity of the company is "Production of electricity" CAEN code 3511.

S.C. NQE ZALOKOSTA SRL (former CODLEA UNU SOLAR) is a limited liability company established in 2012, the head office being registered at Bucharest, 5-7. Dimitrie Pompeiu St., Sector 2, Romania. The company is registered at the Trade Register under number J40/9014/2012. The Establishment Deed of S.C. NQE ZALOKOSTA SRL stipulates in art. 5 "Object of activity" that the core activity of the company is “Management consultancy activities” CAEN Code 7022.

S.C. CODLEA BRAVO SOLAR SRL is a limited liability company established in 2012, the head office being registered at Bucharest, 5-7. Dimitrie Pompeiu St., Sector 2, Romania. The company is registered at the Trade Register under number J40/8982/2012. The Establishment Deed of S.C. CODLEA ALPHA SOLAR SRL stipulates in art. 5 "Object of activity" that the core activity of the company is "Production of electricity" CAEN code 3511.

S.C. NQE HYDRO SRL (former DEAL SOLAR) is a limited liability company established in 2012, the head office being registered at Bucharest, 5-7. Dimitrie Pompeiu St., Sector 2, Romania. The company is registered at the Trade Register under number J40/8981/2012. The Establishment Deed of S.C. NQE HYDRO SRL stipulates in art. 5 "Object of activity" that the core activity of the company is "Production of electricity" CAEN code 3511.

S.C. NQE SOLAR HABITAT SRL (former NQE AQUA) is a limited liability company established in 2012, the head office being registered at Bucharest, 5-7. Dimitrie Pompeiu St., Sector 2, Romania. The company is registered at the Trade Register under number J40/10112/2012. The Establishment Deed of S.C. NQE SOLAR HABITAT SRL stipulates under art. 5 "Object of activity" that the core activity of the company is “Development of building projects” CAEN Code 4110.

31 5-7 Dimitrie Pompei Blvd, 5th Floor Part B, District 2, Bucharest Tel: (+40) 21.539.46.00, Fax: (+40) 21.310.06.05 J40/3315/2009, CUI RO 2695737 Share capital: 3.605.948,40 RON Email: [email protected]

VOSPOLIMNO HOLDINGS LIMITED is a company established in 2012, the head office being registered Nicosia, Cyprus, 11 Boumpoulinas St., 3rd floor. The company has the registration number 310963. The main object of activity is “Activities of holding companies”.

S.C. HYGEIA SOIL SRL is a limited liability company established in 2014, the head office being registered at Bucharest, 5-7. Dimitrie Pompeiu St., Sector 2, Romania. The company is registered at the Trade Register under number J40/14682/2014. The Establishment Deed of S.C. HYGEIA SOIL SRL prevede in art. 5 “Obiectul de activitate” stipulates under art. 5 "Object of activity" that the core activity of the company is “Management consultancy activities” CAEN Code 7022.

S.C. NQE SOLAR 2 SRL is a limited liability company established in 2014, the head office being registered at Bucharest, 5-7. Dimitrie Pompeiu St., Sector 2, Romania. The company is registered at the Trade Register under number J40/4590/2015. The Establishment Deed of S.C. NQE SOLAR 2 SRL stipulates under art. 5 "Object of activity" that the core activity of the company is "Production of electricity" CAEN code 3511

S.C. NQE CENTRAL HABITAT SRL is a limited liability company established in 2014, the head office being registered at Bucharest, 5-7. Dimitrie Pompeiu St., Sector 2, Romania. The company is registered at the Trade Register under number J40/15064/2015. The Establishment Deed of S.C. NQE CENTRAL HABITAT SRL stipulates under art. 5 "Object of activity" that the core activity of the company is “Development of building projects” CAEN Code 4110.

GREEK PRODUCTION OF OLYMPUS HERBS is a company established in 2015, the head office being registered in Greece, Aikaterini, Agiou Antoniou 16, 60100. The company is registered under number 038744530. The main object of activity is production and distribution of agricultural products.

S.C. NQE DEVELOPMENTS SRL is a limited liability company established in 2016, the head office being registered at Bucharest, 5-7. Dimitrie Pompeiu, Sector 2, Romania. The company is registered at the Trade Registry under number J40/16458/2016. The Establishment Deed of S.C. NQE DEVELOPMENTS SRL stipulates under art. 5 “Object of activity” that the core activity of the company is “Development of building projects” CAEN Code 4110.

b) Description of any merger or significant reorganization of the company, its subsidiaries or controlled companies during the financial year Not applicable for Semester I 2017.

c) Description of acquisitions and/or sale of assets During 2016, the Group has established the following entities: - SC NQE Developments SRL whose object of activity is development of building projects with a share capital participation of 99% In July 2016, the Group has sold the participation held in Parking Zalokosta SASU. Also, during 2016, the comapny has modified it’s participation in the following entities: - in NQE Hydro, from 99% to 95.24% - in Codlea Alpha Solar, from 99% to 95% - in NQE Solar Habitat, from 80% to 83.33% - in NQE Solar 2, from 95% to 95.2% - in Greek Production of Olympus, from 83.74% to 88.36% No changes occured during semester I 2017.

32 5-7 Dimitrie Pompei Blvd, 5th Floor Part B, District 2, Bucharest Tel: (+40) 21.539.46.00, Fax: (+40) 21.310.06.05 J40/3315/2009, CUI RO 2695737 Share capital: 3.605.948,40 RON Email: [email protected]

d) Description of the main evaluation results of group companies’ activities:

The main results are the following:

A) Tangible assets

NATURA QUATTUOR ENERGIA HOLDINGS SA owns a land in Mogosoaia, Ilfov County, re-evaluated as of 31.12.2016 by Eurovalue Property Invest SRL, ANEVAR certified valuator, the estimated market value being of 424,000 Euro (ecquivalent of 1.925.426 Ron). CODLEA BRAVO SOLAR SRL owns a land in Codlea, Brasov County, evaluated as of 31.12.2016 by the same valuation company at the estimated market value of 32,123 Euro (equivalent of 145.874 Ron).

B) Real estate investments

NQE SOLAR HABITAT SRL owns 4 lands in Stefanestii de Jos, evaluated as of 31.12.2016 by Eurovalue Property Invest srl at the estimated market value of 1.471.400 Euro (equivalent of 6.681.800 Ron). Also, NQE SOLAR HABITAT SRL is currently in the process of acquiring another 5 lands in the same area, the total acquisition price being 800.000 Euro. HYGEIA SOIL owns a land in Jud. Teleorman evaluated as of 31.12.2016 by Eurovalue Property Invest srl at the estimated market value of 92.400 Euro (equivalent of 419.598 Ron).

C) Financial assets

As at 30.06.2017, the Group owns the following investments in affiliates under common control:

Denumire entitate Tara in care este Obiectul de activitate Procent detinut inregistrata Deal Properties SRL Romania Productie energie 45% regenerabila

S.C. DEAL PROPERTIES SRL is a limited liability company established in 2007, the head office being registered at Bucharest, 5-7. Dimitrie Pompeiu St., Sector 2, Romania. The company is registered at the Trade Register under number J40/4562/2007. The Establishment Deed of S.C. DEAL PROPERTIES SRL stipulates in Ch. III "Object of activity" that the core activity of the company is "Production of electricity" CAEN code 3511.

D) Trade receivables

Trade receivables are not interest bearing and generally have a term of payment between 30-120 days.

E) Trade payable and other liabilities

Liabilities Balance as at Balance as at 31 December 30 June 2017 2016

1 Bond issue loans 2.997.126 2.841.634 2 Amounts due to credit institutions 3 Advance payments for orders 4 Trade payables - related parties suppliers

and other related parties

33 5-7 Dimitrie Pompei Blvd, 5th Floor Part B, District 2, Bucharest Tel: (+40) 21.539.46.00, Fax: (+40) 21.310.06.05 J40/3315/2009, CUI RO 2695737 Share capital: 3.605.948,40 RON Email: [email protected]

5 Trade payables - third-party providers 822.956 994.918 6=3+4+5 Total trade payables 822.956 994.918

7 Amounts due to third parties 3.175.427 10.707.058 8 Amounts due to affiliates 11.978.919 11.751.999 9 Amounts due to participation interest

entities and other related parties 10 Other liabilities including fiscal debs and 623.533 505.835 other debts related to social securities 11=7+8+ 15.777.879 22.964.892 9+10 Total

F) Share capital

As at 30 June 2017, the share capital is made up of the statutory equity amounting to 3,605,949 Ron and adjustments related to hyperinflation (IAS 29) amounting to 1,304,446 RON .

No. of shares Nominal value in Total value RON Percentage Shareholders RON owned Green Southeast Europe 8.680.715 0,10 868.072 24.07% Investments Framecell Ltd 4.226.758 0,10 422.676 11.72% Legal persons 12.288.055 0,10 1.228.805 34.08% Physical persons 10.863.956 0,10 1.086.396 30.13% Total 36,059,484 3,605,948 100.00%

The share capital complies with the requirements of current legislation on companies.

G) Results As at 30 June 2017, the Company recorded the following consolidated results:

Indicators 2016 30.06.2017 Operating revenues 31.234 3.320 Financial revenues 162.646 71.059 Total revenues 193.880 74.379 Operating expenses (3.741.591) (3.062.278) Financial expenses (1.111.976) (609.876) Total expenses (4.853.567) (3.672.154) Operating result (3.710.357) (3.058.958) Financial result (949.330) (538.817) Investments quota (279.762) 8.060 Gross result (4.939.449) (3.589.714) Current income tax (2.600) (1.124) Deferred income tax 232.838 1.922 Net Profit /Loss (4.709.212) (3.588.916)

H) Taxes and charges

As at 30 June 2017, consolidated, the group registers deferred income tax amounting to 1.922 RON.

34 5-7 Dimitrie Pompei Blvd, 5th Floor Part B, District 2, Bucharest Tel: (+40) 21.539.46.00, Fax: (+40) 21.310.06.05 J40/3315/2009, CUI RO 2695737 Share capital: 3.605.948,40 RON Email: [email protected]

1.1.1. Elements of general evaluation

a) As at 30 June 2017, consolidated, the group registers a loss amounting to (3.588.916) RON; b) Turnover: 3.320 RON; c) Type of revenues: Services - rents d) Expenses – Total expenses as at 30 June 2017 amounted to 3.673.278 RON; e) % of market share –not applicable; f) Liquidity – as at 30 June 2017, consolidated, the group had cash available amounting to 477.321 RON;

1.1.2. Evaluation of Company’s technical degree Not applicable

1.1.3. Evaluation of the technical-material supply Not applicable

1.1.4. Evaluation of the sales activity The main services supplied in semester I 2017 were subrenting commercial spaces.

1.1.5. Evaluation of issues related to group Company’s employees/personnel a) During semester I 2017, consolidated, the group had an average of 15 employees.

1.1.6. Evaluation of issues related to the impact of the core activity over the environment Not applicable

1.1.7. Evaluation of the research and development activity Not applicable

1.1.8. Evaluation of the group’s activity related to risk management The main risks the group is subject to and the policies used are detailed herein below.

The Group is exposed to the following risks related to the use of financial instruments:

 Credit risk  Liquidity risk  Market risk

The Group has no formal commitments to combat financial risks. Despite the non-existence of formal commitments, financial risks are monitored by the top management, with the focus on the needs of the Group to effective offset opportunities and threats. Group’s risk management policies are defined so as to ensure the identification and analysis of risks facing the Group, establishing limits and appropriate controls, as well as risk monitoring and compliance with the limits set. Policies and risk management systems are reviewed regularly to reflect changes in market conditions and the Group's activities. The Group, through its training and management standards and procedures aims at developing an orderly and constructive control environment in which all employees understand their roles and obligations. The group is considering risk management within an integrated risk management, for complying with the requirements of Bucharest Stock Exchange (Corporate Governance Code.

35 5-7 Dimitrie Pompei Blvd, 5th Floor Part B, District 2, Bucharest Tel: (+40) 21.539.46.00, Fax: (+40) 21.310.06.05 J40/3315/2009, CUI RO 2695737 Share capital: 3.605.948,40 RON Email: [email protected]

Credit risk Credit risk is the risk that the Group to incur a financial loss as a result of non-fulfillment of contractual obligations by a customer or counterparty to a financial instrument, and this risk mainly results from trade receivables and financial investments of the Group. Financial assets, which may subject the Group to credit risk are mainly trade receivables, cash and cash equivalents, other assets and loans. The Company has implemented a series of policies that ensure that the sale of services is made to customers with an appropriate collection. Liquidity risk Liquidity risk is the risk that the Group will encounter difficulties in meeting its obligations associated with financial liabilities that are settled in cash or another financial asset transfer. The Group's approach with regard to liquidity risk is to ensure, to the extent possible, that always hold sufficient liquidity to meet liabilities when they become due, both under normal and stress conditions without incurring unacceptable losses or jeopardizing the Group's reputation. Market risk Market risk is the risk that variation in market prices, such as foreign exchange, interest rate and price of equity instruments, affect the Group's income or the value of financial instruments held. The objective of market risk management is to manage and control market risk exposures within acceptable parameters and simultaneously to optimize the return on investments. Currency risk The Group is exposed to currency risk due to sales, acquisitions and other loans that are denominated in a currency other than the functional one of the Group entities (Romanian leu), primarily the euro.

1.1.9. Elements of perspective on the company's activity

b. Presentation and analysis of trends, items, events or uncertainty factors that affect or could affect the liquidity of the company compared to the same period of previous year. The group does not face the elements, events or uncertainty factors that may affect the liquidity of the group compared to the same period last year. In addition, shareholders have committed to support the group's operations in 2016.

c. Presentation and analysis of the effects of current or anticipated capital expenditure on the financial status of the company compared to the same period last year Not applicable.

d. Prezentarea si analizarea evenimentelor, tranzactiilor schimbarilor economice care afecteaza semnificativ veniturile din activitatea de baza

The ability of the company’s subsidiaries to achieve profit and to pay dividends can significantly affect revenues from the core activity. In December 2014, the Group acquired participations in the Company Parking Zalakosta, having as main activity "rental of parking spaces." Earnings from Parking Zalokosta amounted to 3,742,336 RON in 2015. In July 2016, the Group has sold the participation held in Parking Zalokosta SASU.

e. Subsequent evens No events subsequent to the balance sheet date.

36 5-7 Dimitrie Pompei Blvd, 5th Floor Part B, District 2, Bucharest Tel: (+40) 21.539.46.00, Fax: (+40) 21.310.06.05 J40/3315/2009, CUI RO 2695737 Share capital: 3.605.948,40 RON Email: [email protected]

2. Tangible assets of the Company

On 31.12.2016, the group owns the following tangible assets:  A plot of land in Mogosoaia with a surface of 8,002.4 sqm held by Natura Quattuor Energia Holdings sa  A plot of land in Codlea with a surface of 17,996 sqm held by Codlea Bravo Solar SRL  Four plots of land in Stefanestii de jos with a surface of 89.075 mp held by Nqe Solar Habitat srl  A plot of land in jud Teleorman with a surface of 210.000 mp held by Hygeia Soil srl.  Advances and guarantees for 5 plots of land in Stefanestii de Jos with a total surface of 27.550 sqm for which up to present date were paid 590.000 Euro.

The Group also owns 6 automobiles, out of which 4 have been aquisitioned during 2016. The total aquisition value of the 4 automobiles is 733,398 RON.

3. Securities market

3.1. Specifying the markets in Romania and other countries where the securities issued by the company are traded The securities issued by the company are traded on the regulated market of the Bucharest Stock Exchange, Standard Category. Shares of the company are in a total number of 29,176,915 with a nominal value of 0.10 RON. On 31 December 2014 the share capital of the company was restated according to IAS 29, amounting to 1,304,446.15.

3.2. Description of the groups policy regarding dividends. Specification of dividends due/ paid/accumulated in the last 3 years and, if applicable, the reasons for possible decrease of dividends during the last three years. During the last 3 years (2014, 2015, 2016), no dividends were calculated.

3.3. Description of any activities of the group to purchase its own shares. Not applicable

3.4. In case the group has subsidiaries, specify the number and nominal value of the shares issued by the parent company held by subsidiaries. Not applicable

3.5. In case the group issued bonds and / or other debt securities, presentation of how the company pays its obligations to the holders of such securities.

The group has not issued bonds during semester I 2017. Following the revaluation, the value of existing bonds amounts to 2.732.340 ron, for which interest was calculated amounting to 109.294 ron. The maturity was extended until 30.06.2019.

4. Corporate governance

4.1. Shareholders general assembly

The main rules and procedures of the SGA are provided in Chapter 4 of the Constitutive Act of the Company published on the website of the Company. SGA shall be convened by the Board of Directors whenever necessary, in accordance with law. The date of the Assembly may not, in accordance with regulatory requirements, to be within less than thirty (30) days from the publication of the convening notice in the Official Gazette of Romania, Part IV. The convening notice must also be published in one of the newspapers widely distributed in Romania. In exceptional cases, when the Company's interest requires, the Board may

37 5-7 Dimitrie Pompei Blvd, 5th Floor Part B, District 2, Bucharest Tel: (+40) 21.539.46.00, Fax: (+40) 21.310.06.05 J40/3315/2009, CUI RO 2695737 Share capital: 3.605.948,40 RON Email: [email protected]

convene SGA. The convening notice will be sent to the Bucharest Stock Exchange and the FSA, according to the regulation of capital markets. The convening notice will be also made available on the Company's web site, together with any explanatory document on the items included on the agenda of the SGA. The annual financial statements are made available starting with the convening date of the Ordinary SGA convened to decide on them. Organizing General Meeting of Shareholders The SGA is usually chaired by the President of the Board, who may designate another person to chair the meeting. SGA President appoints two or more technical secretaries to check the formalities required by law for the GMS and prepare the minutes thereof. The minutes of the meeting signed by the president and secretaries certify the compliance with the formalities relating to the convening notice, the date and place of the Meeting, the agenda, the shareholders present, the number of shares, a summary of the issues discussed, decisions taken and on request, shareholders statements made by shareholders in the SGM. SGA decisions are drafted in accordance with the minutes and signed by the President of the Board or by another person appointed by the president. In compliance with capital market regulations, SGM resolutions will be sent to the Bucharest Stock Exchange and the Financial Supervision Authority (formerly the National Securities Commission) within 24 hours after the event. Decisions will also be made available on the Company's web site.

4.2. Responsibilities of the Shareholders General Assembly

The Company’s governing body is the shareholders’ general assembly. The shareholders’ general assemblies are ordinary and extraordinary.

Competencies of shareholders’ general ordinary assemblies include: a) discuss, approve or amend the annual financial statements, based on reports of the Board of Directors and the auditor and decision on the distribution of profits as dividends; b) election and recall of the Board of Directors; c) appoint and revoke the financial auditor of the Company and establish the minimum term of the audit contract; d) determining the remuneration due to the Board members for the current financial year; e) assessing the management of the Board members and the decision on the discharge of the Board members for the preceding financial year; f) approval of the income and expenses budget and, if necessary, of the work program for the next financial year; g) approval of pledging, renting or dissolution of one or more units of the Company; h) decisions on other issues included in the agenda of the meeting in accordance with the law

The competencies of shareholders’ general extraordinary assembly are to adopt decisions regarding the following aspects: a) changing the legal form of the Company; b) moving the registered office of the Company in another country; c) changing the main activity of the Company, as established in Art. 2 of the Articles of Association; d) share capital increase, unless the increase is decided by the Board in accordance with Art. 5.2 of this Charter; e) reduction of the share capital of the Company; f) the Company's merger with any other company / any other companies or division / separation of the Company, except that, according to applicable law, the decision of shareholders for a certain type of merger or division / separation is unnecessary; g) dissolution and liquidation of the Company; h) conversion of shares from one category to another; i) the issuance of bonds;

38 5-7 Dimitrie Pompei Blvd, 5th Floor Part B, District 2, Bucharest Tel: (+40) 21.539.46.00, Fax: (+40) 21.310.06.05 J40/3315/2009, CUI RO 2695737 Share capital: 3.605.948,40 RON Email: [email protected]

j) converting bonds from one category to another or into shares; k) changes in the Articles of Association; l) prior approval of the main terms and conditions of any transaction / series of transactions involving the acquisition, alienation, exchange, constituting a guarantee against assets classified as assets of the Company, whose book value exceeds, individually or cumulated budget year, twenty (20) percent of the total assets of the Company, less debt, as this value will be determined based on the latest financial statements published by the Company; m) the prior approval of the main terms and conditions of any rentals of tangible assets for a period longer than one year, whose book value exceeds, individually or cumulatively over the same counterparty or persons involved or acting in concert, exceeds twenty (20) percent of the total assets of the Company, less debt, as this value will be determined based on the latest financial statements published by the Company; n) the prior approval of the main terms and conditions of any association for a longer period of 1 year involving values that exceed, individually or cumulatively, twenty (20) percent of the total assets of the Company, less debt, as it value will be determined based on the latest financial statements published by the Company; a) the prior approval of the main terms and conditions of any legal act having as object the acquisition, alienation, lease, exchange, constituting the guarantee of the assets in the Company, whose book value exceeds fifty (50) percent of the book value of assets Company determined according to data recorded in the last annual financial statements published by the Company; p) admission to trading of shares issued by the Company on any other regulated market / multilateral trading platform; q) any acquisition or alienation by / to any member / members / of the Board of Directors or to / by any director / directors / of the Company, in its own name of goods to or from the Company having a value to exceed ten (10) percent of the Company's net asset value, determined according to data recorded in the financial statements of the Company for the previous year of such operations; r) other issues included in the agenda of the meeting and that fall, according to law, under the responsibilities of the extraordinary general meeting of shareholders

The following attributions are delegated to the Board of Directors and the related decisions will be taken by the Board of Directors according to statutory and legal requirements: a) share capital increase, in accordance with Art. 5.2 of the Establishment Deed; b) change of the secondary activity of the Company, in compliance with Art. 3 of the Establishment Deed; c) moving the registered office of the Company at any other address in Romania.

All documents and information relating to the items included on the agenda of the shareholders meeting and how shareholders may exercise their rights in the meeting will be published on the website of the Company at least 30 days before the date set for the meeting indicated in convening the first meeting of the assembly. Annual financial statements, annual reports of the Board of Directors and the proposed dividend distribution will be made available to shareholders at the registered office of the Company and will be published on the Company's website from the date of publication the convening ordinary general meeting of shareholders. Each shareholder may submit written questions to the Board of Directors on the Company's activity before the date on which the assembly will take place, and the answers will be provided during the meeting or can be posted on the Company's website in the section "Frequently Asked Questions" If the convening contains a proposal for election of Board members, the Company will make available to shareholders’ information on the name, domicile and professional qualifications of the persons proposed for the position of member of the Board of Directors and this list will be consulted and completed by shareholders to the 10th calendar day preceding the date set for the first meeting of the assembly.

39 5-7 Dimitrie Pompei Blvd, 5th Floor Part B, District 2, Bucharest Tel: (+40) 21.539.46.00, Fax: (+40) 21.310.06.05 J40/3315/2009, CUI RO 2695737 Share capital: 3.605.948,40 RON Email: [email protected]

When the agenda of the meeting includes proposals to amend the Articles of Association, the notice will contain the full text of the proposed amendment.

4.3. Presentation of the Group’s administrators:

a) CV (name, surname, age, qualifications, professional experience, position and seniority)

Administrative management of the mother company, Natura Quattuor Energis Holdings, is secured by a Board of Directors consisting of 5 members, elected for a term of four years as follows:

ADMINISTRATOR CALITATEA TSAMIS GEORGIOS PREDSIDENT TSELEPIS DIMITRIOS VICE-PRESIDENT KAHAN ZVI ERMANNO VICE-PRESIDENT VOLIS ARGYRIOS MEMBER GAVRIILIDIS THEODOROS MEMBER

Starting October 2012, Mr. Argyrios Volis was appointed General Manager of the company.

Tsamis Georgios - (MSc.), economist, began his business career as an investment consultant and project manager in various companies, joining the Company in 2009. He obtained his Bachelor in Business Administration from the University of Northumbria Newcastle.

Kahan Zvi Ermanno - is a businessman who, after graduation, owned and operated a family business in the textile industry, which has developed in two states, namely in Israel and Italy, accounting production units which, at full capacity, benefiting from a total of over 1000 employees. Manufactured goods were exported to most European countries and the USA. Currently, Mr. Ermanno collaborates with various companies providing business consulting services, while also holding the position of Vice-chairman of the NQE, starting in October 2014.

Argyrios Volis (PhD) – economist, started his business career as Investment Consultant and Project Manager in various companies, while he joined the Company in 2010. His contribution stems from his academic research on Capital Markets and especially in the field of Portfolio and Risk Management, as well as Capital Markets Efficiency. He has completed his PhD in Finance at the Athens University of Economics and Business, and holds an MSc in International Securities, Investment and Banking, by the ISMA Centre, Reading University.

Dimitrios Tselepis is the vice-president and CEO of the company starting with april 2016. He has a 20 years experience in the banking sector in Greece, working as Section Manager in Business Network and senior manager in Corporate and Recovery (Millennium Bank and Piraeus Bank). He has a bachelors degree in chemistry at the University in Ioannina and an MBA at the University in Sterling, UK.

Theodoros Gavriilidis is a member of the board since april 2016. He has a 20 years experience in the banking and corporate sector ( Aspis Bank, Millennium bank, Alpha Bank). He has an MBA at Hellenic Management Association in Thessaloniki.

Administrative management of Codlea Alpha Solar is ensured by Mr. Alexandru Miron. Alexandru Miron is a graduate of the University of Bucharest-Law School. He has an experience of about 20 years in real estate development industry as well as in construction field. Between 1991 and 2000 he occupied top-level positions in the management of Olympic Properties & Investments SRL and OPI Construct S.A. (building and development companies). He was working also with the Romanian subsidiaries of Technical Olympic Group of Companies and Quality Living Developers

40 5-7 Dimitrie Pompei Blvd, 5th Floor Part B, District 2, Bucharest Tel: (+40) 21.539.46.00, Fax: (+40) 21.310.06.05 J40/3315/2009, CUI RO 2695737 Share capital: 3.605.948,40 RON Email: [email protected]

S.A., between 2000 and 2009, as Head of the Legal Department and Marketing & Commercialization Department. He was involved in the coordination and implementation of the corporate actions of the group: setting up of subsidiary SPV companies, land acquisition, land development, corporate restructuring, etc. He has a long experience in marketing & commercialization of real estate projects, coordinating for more than 15 years these activities in OPI SRL, Lamda Olympic, Technical Olympic and Quality Living Developers.

The administrative management of N qe Zalokosta SR: (former Codlea Unu Solar) has been ensured in 2014 by Anastasios Drakos, in 2015 by Nikolaos Sofianos and, begining with april 2016 by Mihai Andrei-Lucian. Mihai Andrei-Lucian is part of the Nqe Holdings team, working in the financial- accounting department. Mihai Andrei-Lucian also ensures the administrative management of Nqe Hydro (former Deal Solar) formerly insured in 2015 by Anastasios Drakos.

Administrative management of teh companies Codlea Bravo Solar, NQE Solar 2 and NQE Solar Habitat SRL (former NQE Aqua) is ensured by Nae – Serban Ileana – Teodora. Nae – Serban Ileana – Teodora has been working in the set-up, project management and development of the real estate business, as Corporate Manager, since 2004. She was involved in the planning, organization and investment stages, being responsible for designing and monitoring the implementation of the companies’ business plans and the acquisition of real estate assets by foreign and local investors. She is responsible for the execution, organization, and coordination of the corporate and legal aspects of the Company and its subsidiaries. Teodora holds a Bachelor degree in foreign languages (English and Spanish, with "Spiru Haret" University of Bucharest) and a Master degree in Finance and Management in the Context of European Union Integration (with "Titu Maiorescu" University).

Administrative management of Deal Properties SRL is ensured by a board of directors made up of three members: Mr. Marius Melintescu, Nae-Serban Ileana Teodora and Vladimir Boroukaev. Vladimir Boroukaev is the financial manager of Novard group of companies.

Administrative management of NQE Central Habitat SRL is ensured by Marius Melintescu and Michail Palaiodimopoulos.

Administrative management of NQE Developments srl is ensured by Michail Palaiodimopoulos.

Administrative management of Vospolino Holdings Ltd is ensured by the company ASK Management Limited.

Administrative management of Hygeia Soil SRL is ensured by Marius Melintescu. Marius Melintescu is a graduate of the Academy of Economic Studies in Bucharest, with a specialization in Finance, Insurance, Banking, and the Stock Exchange. He, also, holds a Master degree in Financial Management and Analysis from the same academy. Over his 10-year experience in the financial field in Romania, he has worked in the media & advertising, food and real-estate industries, for local and international companies.

Administrative management of Greek Production of Olympus Herbs is ensured by Theodoridis Georgios, Michail Palaiodimopoulos and Chalatziouka Efthimia.

During the last 5 years, the administrators were not involved in litigation or administrative proceedings.

b) any agreement, understanding or family connection between the administrator and another person due to whom that administrator was appointed in the position; Not applicable

41 5-7 Dimitrie Pompei Blvd, 5th Floor Part B, District 2, Bucharest Tel: (+40) 21.539.46.00, Fax: (+40) 21.310.06.05 J40/3315/2009, CUI RO 2695737 Share capital: 3.605.948,40 RON Email: [email protected]

c) participation of the administrator to the share capital of the companies in the Group as at 31.12.2016:

Alexandru Miron holds 1% of the share capital of the companies NQE Zalokosta SRL (former Codlea Unu Solar) and Codlea Alpha Solar srl. Mihai Andrei Lucian holds 4.76% of the share capital of the company Nqe Hydro (former Deal Solar). Nae Serban Ileana Teodora holds 0.8% of the share capital of NQE Solar 2 srl. Michalis Palaiodimopoulos holds 1% of the share capital of Codlea Bravo Solar srl and Nqe Developments srl. Argyrios Volis holds 16.67% of the share capital of Nqe Solar Habitat srl.

d) list of persons affiliated to the group

Relationship nature Country of origin Tsamis Georgios Administrator Greece Ermanno Zvi Kahan Administrator Israel Argyrios Volis Administrator, Associate Greece Gavriilidis Theodoros Administrator Greece Dimitrios Tselepis Administrator Greece Panagiotis Diamandis Associate Greece Framecell Limited Associate Cyprus Coronedo Limited Associate Cyprus Green Southeast Europe Investments Associate Luxembourg IEBA Trust SA Associate Romania Mirica-Constantinescu Cristian Associate Romania Iancu Catalin-Jianu-Dan Associate Romania Iancu Ludmila Associate Romania Rodica Haiduc Affiliate Romania Unstop Holdings Limited Associate Cyprus Gaia Pro Invest SRL Affiliate Romania Deal Properties SRL Associate Romania Miron Alexandru Administrator, Associate Romania Nae Serban Ileana Teodora Administrator, Associate Romania Palaiodimopoulos Michail Administrator, Associate Greece Marius Melintescu Administrator Romania Mihai Andrei Lucian Administrator, Associate Romania Stone Tribune Co Associate Marshall Islands Ask Management Limited Administrator Cyprus Marika Katholou Associate Greece Trigono Consultants Associate Greece Dimitrios Papachristou Associate Greece Savvopoulos Nikolaos Associate Greece Theodoridis Georgios Administrator Greece Chalatziouka Efthimia Administrator Greece Savvopoulos Vasileios Associate Greece

42 5-7 Dimitrie Pompei Blvd, 5th Floor Part B, District 2, Bucharest Tel: (+40) 21.539.46.00, Fax: (+40) 21.310.06.05 J40/3315/2009, CUI RO 2695737 Share capital: 3.605.948,40 RON Email: [email protected]

Nteventzis Stavros Associate Greece Cornerstone Investments Associate Greece Hellenic Granite Company Associate Greece Didras Holdings Luxembourg SA Affiliate Luxembourg

5. Financial consolidated statements

Economic and financial analysis at as 30 June 2017 is as follows:

A) BALANCE SHEET ELEMENTS

Indicators 2016 30.06.2017 Total assets 20.084.591 23.772.875 Tangible assets 16.803.303 19.747.618 Inventory 132.098 122.588 Liabilities 2.558.235 3.425.348 Cash and bank 590.955 477.321 accounts Total liabilities 20.084.591 23.772.875 Equity 486.630 (3.028.569) Total debts 19.597.961 26.801.444

B) Profit and loss account

Indicators 2016 30.06.2017 Operating revenues 31.234 3.320 Financial revenues 162.646 71.059 Total revenues 193.880 74.379 Operating expenses (3.741.591) (3.062.278) Financial expenses (1.111.976) (609.876) Total expenses (4.853.567) (3.672.154) Operating result (3.710.357) (3.058.958) Financial result (949.330) (538.817) Investment quota (279.762) 8.060 Gross result (4.939.449) (3.589.714) Current income tax (2.600) (1.124) Deferred income tax 232.838 1.922 Net Profit /Loss (4.709.212) (3.588.916)

C) ANALYSIS OF MAIN FINANCIAL – ECONOMIC INDICATORS

2016 30.06.2017

Current liquidity ratio 0.49 0.32 Gearing ratio 0.49 0.32

43 5-7 Dimitrie Pompei Blvd, 5th Floor Part B, District 2, Bucharest Tel: (+40) 21.539.46.00, Fax: (+40) 21.310.06.05 J40/3315/2009, CUI RO 2695737 Share capital: 3.605.948,40 RON Email: [email protected]

6. Description of the main features of compliance and risk management systems in relation to the financial reporting process

The compliance mainly – but without limitation - aims at the following aspects: · compliance with the legislation in force; · enforceability of Group company management’s decisions; · good operation of the Group Companies; · reliability of financial information; · streamline the operations of the entity; · prevention and risk control.

As a result, internal control procedures aim at: · on the one hand, compliance of the Group Companies’ activity and the behavior of the personnel with the legislation, values, standards and internal rules of the Group; · On the other hand, verifies if accounting, financial and management information communicated is accurate and reflect the activity and situation of the Group Companies. The purpose is to provide coherent internal control objectives, identify key factors of success and communicate to the Group Companies’ management, in real-time, the information on those performances. Efforts to implement a satisfactory compliance are related to the application of good practices. Compliance activities are part of the management process through which the Group Companies aim to achieve objectives. Compliance aims at enforcement of compliance procedures at all levels: approval, authorization, verification, evaluation of operational performance, securing assets, separation of functions outlined in the manual and guides of internal procedures. The companies also follow the smooth running of operations in practice both prior to the completion, during budget formulation, and thereafter effecting transactions through budgetary control. The Group Companies have a human resources policy that tracks issues related to the recruitment of qualified personnel, career management, continuing education, individual evaluations, promotions and corrective actions. Bonus policy is related to and encourages individual and collective performance of employees.

Financial and accounting compliance is a major element of internal control practiced by the group. It is intended to ensure that the accounts and a financial follow up of its activities to meet the defined objectives. It also covers the entire process of obtaining and communication of accounting and financial information and contribute to a reliable and consistent with legal requirements. Accounting compliance of the group aims to ensure: · compliance of accounting and financial information published with the rules applicable; · enforcement of management guidelines prepared in connection with this information; · asset protection; · prevention and detection of fraud and accounting and financial irregularities; · reliability of published annual financial statements and other information communicated to the market. On 12 March 2014 the Company was accepted to trading on the regulated market of Bucharest Stock Exchange, Standard Category.

This Report of the Board of Directors was approved on 16 August 2017.

President of the Board of Directors Tsamis Georgios

44 5-7 Dimitrie Pompei Blvd, 5th Floor Part B, District 2, Bucharest Tel: (+40) 21.539.46.00, Fax: (+40) 21.310.06.05 J40/3315/2009, CUI RO 2695737 Share capital: 3.605.948,40 RON Email: [email protected]

INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR 30.06.2017

STATEMENT OF FINANCIAL POSITION as at 30.06.2017

01-Jan-17 30-Iun-17 ASSETS Non current assets Property, plant and equipment 4,189,833 5,204,376 Intangible assets 32,018 19,252 Investment property 7,101,372 8,889,816 Loans receivables 5,007,258 5,139,087 Financial assets 128,214 142,680 344,608 352,407 Deferred tax asset - - Total Non current Assets 16,803,303 19,474,618

Current assets Inventories 132,098 122,588 Loans receivables - - Trade and other receivables 2,478,610 3,338,854 Other assets 79,625 86,494 Cash and cash equivalents 590,955 477,321 Total Current Assets 3,281,288 4,025,257 Total Assets 20,084,591 23,772,875

SHAREHOLDERS' EQUITY AND LIABILITIES Shareholders' Equity Share capital 4,910,395 4,910,395 Share premiums 4,064,177 4,064,177 Translation reserve (2,709) (5,239) Revaluation reserves 1,602,085 1,602,898 Legal reserves 24,479 24,479 Other reserves 14,459 90,052 Retained earnings / (Accumulated losses) (6,279,780) (10,659,532) Result for the year (4,379,752) (3,330,392) Total shareholders 'equity (46,646) (3,303,162)

Non-controlling interest 533,276 274,593 Total equity 486,630 (3,028,569)

Non-current liabilities Loans and borrowings 10,049,760 11,522,972 Bonds 2,724,660 2,732,340 Other long term liabilities - - Deferred tax liabilities 137,269 135,412 Total Non-current liabilities 12,911,689 14,390,724

Current liabilities Trade and other payables 1,309,220 1,365,341 Loans and borrowings 5,104,586 10,936,085 Bonds 272,466 109,294 Total Current liabilities 6,686,272 12,410,720 TOTAL Liabilities 19,597,961 26,801,444 TOTAL Shareholders' Equity and Liabilities 20,084,591 23,772,875

45 5-7 Dimitrie Pompei Blvd, 5th Floor Part B, District 2, Bucharest Tel: (+40) 21.539.46.00, Fax: (+40) 21.310.06.05 J40/3315/2009, CUI RO 2695737 Share capital: 3.605.948,40 RON Email: [email protected]

STATEMENT OF COMPREHENSIVE INCOME as of 30.06.2017

01-Jan-17 30-Iun-17

Revenues from services rendered 25,938 - Rental income 6,576 3,320 Other revenues (1,280) - Total revenues 31,234 3,320

Third party services (2,036,646) (1,369,444) Personnel expenses (1,368,781) (1,372,605) Other operating expenses (818,216) (308,213) Fair value gains / (losses) from investment properties, net 482,051 (12,015) Total operating expenses (3,741,591) (3,602,278)

Operating result (3,710,357) (3,058,958)

Financing costs (803,385) (588,904) Financing income 162,646 71,059 Foreign exchange expense, net (125,633) (20,972) Other financial items, net (182,959) -

Financial result (949,330) (538,817)

Share of profit of equity-accounted investees, net of tax (279,762) 8.060

Gross profit (4,939,449) (3,589,714)

Current income tax expense (2,600) (1,124) Deferred income tax expense 232,838 1,922 Total income tax 230,238 798

Net profit / (loss) for the period (4,709,212) (3,588,916)

thereof attributable to non-controlling interests (329,461) (258,524) thereof attributable to the owners of the parent (4,379,750) (3,330,392)

Other comprehensive income

Items that will never be reclassified to profit and loss

Revaluation of property, plant and equipment 6,825 410 Foreign currency translation differences for foreign 1,249 (2,530) operations Deferred tax liability on revaluation reserve (1,160) (66) Other comprehensive income for the period 6,914 (2,186)

Total comprehensive income (4,702,298) (3,591,102))

46 5-7 Dimitrie Pompei Blvd, 5th Floor Part B, District 2, Bucharest Tel: (+40) 21.539.46.00, Fax: (+40) 21.310.06.05 J40/3315/2009, CUI RO 2695737 Share capital: 3.605.948,40 RON Email: [email protected]

thereof attributable to non-controlling interests (329,463) (258,521) thereof attributable to the owners of the parent (4,372,835) (3,332,580)

The financial statements were not audited as at 30.06.2017.

Volis Argyrios General Manager

SC PKF CONSULTOR TAX SRL 22 – AUTHORIZED LEGAL ENTITIES, CECCAR MEMBER(7873/2012)

47 5-7 Dimitrie Pompei Blvd, 5th Floor Part B, District 2, Bucharest Tel: (+40) 21.539.46.00, Fax: (+40) 21.310.06.05 J40/3315/2009, CUI RO 2695737 Share capital: 3.605.948,40 RON Email: [email protected]

EXPLANATORY NOTES TO THE FINANCIAL INTERIM CONSOLIDATED STATEMENTS for the 6 month period ended on 30 June 2017:

Note 1. Reporting entity S.C. Natura Quattuor Energia Holdings SA (“Company”) is a joint stock company established in 1990, with the social offices in Bucharest, 5-7 Dimitrie Pompei Bvd., District 2, Romania. The Company is registered with the Trade Registry under no. J40/3315/2009. The Articles of Incorporation of S.C. NATURA QUATTUOR ENERGIA HOLDINGS SA stipulates under art. 5 “Field and object of activity of the Company “that the main object of activity of the Company is Activities of holding companies “ NACE Code 6420. In 2012, the Company changed its name into S.C. NATURA QUATTUOR ENERGIA HOLDINGS SA, from formerly SC Scapis SA. The Company was listed on RASDAQ market. Starting with March 2014 the Company is listed on the regulated market of Bucharest Stock Exchange, Standard category, under the trading symbol SCPS. The company is not ultimately controlled by a single entity. The consolidated financial statements of the Company for the year ended 30 June 2017 comprise the Company and its subsidiaries (together with the Company called the "Group") and the Group's interests in associates and joint ventures. Subsidiaries and Associates of the Company, and the nature of their activity are as follows:

Country of June 30, December registration Nature of business 2017 31, 2016 Activities of Vospolimno Holdings Cyprus holding √ √ Limited companies Renewable NQE Hydro SRL Romania √ √ energy Renewable NQE Zalokosta SRL Romania √ √ energy Codlea Alpha Solar Renewable Romania √ √ SRL energy Codlea Bravo Solar Renewable Romania √ √ SRL energy Deal Properties SRL Renewable Romania √ √ (associate) energy NQE Solar Habitat Real estate Romania √ √ SRL development Hygeia Soil SRL Romania Agriculture √ √ NQE Central Habitat Real estate Romania √ √ SRL development Real estate NQE Solar 2 SRL Romania √ √ development Greek Production of Greece Agriculture √ √ Olympus Herbs Ike Real estate NQE Developments Romania √ √ development

Note 2. Basis of preparation These consolidated financial statements have been prepared in accordance with the requirements of Order no. 2844/2016 of the Vice-Minister of the Ministry of Public Finance for approving the accounting regulations compliant with International Financial Reporting Standards

48 5-7 Dimitrie Pompei Blvd, 5th Floor Part B, District 2, Bucharest Tel: (+40) 21.539.46.00, Fax: (+40) 21.310.06.05 J40/3315/2009, CUI RO 2695737 Share capital: 3.605.948,40 RON Email: [email protected]

(hereinafter "IFRS"), applicable to trading companies whose securities are admitted to trading on a regulated market and subsequent amendments. According to VMPFO 2844/2016, International Financial Reporting Standards represent the standards adopted under the procedure stipulated by the European Commission Regulation no. 1606/2002 of the European Parliament and of the Council as of 19 July 2002 on the application of international accounting standards.

Note 3. Functional and presentation currency The consolidated financial statements are presented in Romanian lei ("Lei" or "RON"), which is the functional currency of the Group. All financial information presented in RON has been rounded to the nearest RON, unless otherwise indicated.

Note 4. Use of estimates and professional judgement Preparation of consolidated financial statements in conformity with IFRS requires the use by management of professional judgments, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Note 5. Valuation Basis The consolidated financial statements are prepared under the historical cost, except for the following significant items in the consolidated statement of financial position:  land and buildings are measured at revalued amount;  real estate investments are measured at fair value.

The share capital is adjusted in accordance with International Accounting Standard ("IAS") 29 Financial reporting in hyperinflationary economies, in order to adjust effects of the Romanian hyperinflationary economy ended at December 31, 2003. Note 6. Changes in accounting policies All the Group entities have consistently applied the accounting policies to all periods presented in these consolidated financial statements.

Note 7. Significant accounting policies The accounting policies have been applied by all Group entities, consistently to all periods presented in these consolidated financial statements.

49 5-7 Dimitrie Pompei Blvd, 5th Floor Part B, District 2, Bucharest Tel: (+40) 21.539.46.00, Fax: (+40) 21.310.06.05 J40/3315/2009, CUI RO 2695737 Share capital: 3.605.948,40 RON Email: [email protected]

STATEMENT

This statement is given according to art. 113 letter D para. 1(c) of NSC Regulation no. 1/2006, as amended, concerning the consolidated financial statements of NATURA QUATTUOR ENERGIA HOLDINGS S.A. prepared as at 30 June 2017 regarding the extent to which they present fairly, in all material respects, the financial position of NATURA QUATTUOR ENERGIA HOLDINGS S.A. as at 30 June 2017 and of its financial performance, cash flows for the financial semester ended on that date, as required by accounting rules in Romania, namely Accounting Law no. 82/1991 republished and NSC order no. 13/2011 approving the Regulation no. 4/2011, with subsequent amendments and the accounting policies described in the consolidated financial statements.

Confirm knowingly and confidently that the consolidated semester financial statements which comply with the regulations listed above, provide a fair and accurate image of the assets, financial position and profit and loss account of the Company and that the Board of Directors Report contains a correct analysis of the company’s performance development and a description of the principal risks and uncertainties specific to the activity run by the company.

Tsamis Georgios Melintescu Marius Administrator Financial Director

50