Translation from the Romanian language; Romanian version shall prevail

COMVEX S.A. was incorporated in 1991, being the largest bulk raw material handling terminal in Black Sea area, covering a surface of de 700,386 m2 in South of Constanta Port, Romania. The Company’s registered premise is in Constanta, Port of Constanta, Berth 80-84, registered with the Trade Register under no. J13/622/1991 and having the sole fiscal code RO1909360. COMVEX terminal is the leading specialist on the market in handling, storing and transshipment of dry bulk minerals such as iron ore, coal, coke, bauxite, operating from a modern and fully equipped facility location in the Port of Constanta. COMVEX is the only terminal for the operation of solid bulk goods in the Black Sea area that is able to cater for Cape size vessels of up to 220,000 tdw, holding a discharge line at the maritime quay formed of 5 berths with a total length of 1,400 m and water depth comprised between 10.8 and 18.5 m. In addition, COMVEX benefits geographically from having access through the waterway network which includes the Danube.

Due to its location and excellent access potential to industrial plants in Europe, COMVEX is able to provide its customers, such as major mining companies from Australia, Brazil, India, Africa, USA and Canada, the ability to make deliveries to industrial plants in Romania, Hungary, Austria, Ukraine, Bulgaria, and Serbia, on a “just in time” basis. Currently, COMVEX is developing a Grain Terminal in Berth 80 on a surface of approximately 60,000 sqm. The location provides important logistic advantages, respectively: the deepest berth in the Black Sea, vicinity with the barges terminal for river transport from countries near the Danube, direct and easy access to the railway, short distance and direct access to highway A2. Thus, COMVEX will provide grain producers in Romania, Hungary, Serbia, Bulgaria the possibility to deliver the obtained production on ships of great capacity, 100-120,000 tdw.

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The Company has implemented an integrated management system, being certified on quality management standards ISO 9001:2008, environment management system according to ISO 14001:2009 and health and security at work management system according to OHSAS 18001:2007. It is also compliant with the requirements of the International Ship and Port Facility Code Security (ISPS).

The Company carries out its activity by applying internal control norms and procedures, by complying with the requirements of all hierarchic and operational levels: approval, authorization, verification, operating performances assessment, assets securing, separation of positions. As for the human resources policy, the Company considered its employees’ professional training according to the position assignments and responsibilities. To assess the internal control, the Company’s management implemented the Internal Organization Rule and the internal procedure manuals. The internal auditors are those assessing the internal control system of the Company and they offer an impartial and professional analysis of the organization risks. In its relation to the shareholders, Comvex applies the transparency principles provided by the applicable capital market legislation. At the same time, in view of assuring a greater transparency, Comvex follows the Principles of Corporate Governance. Assuring an organized working frame, based on firm principles helps on a long term to maximize value both for the shareholders, and for the interested public.

Comvex is traded on the Alternative Trading system managed by the Bucharest Stock Exchange (AeRO), having the symbol CMVX. Its share capital amounts to RON 29,139,927.5, divided in 11,655,971 nominative, dematerialized shares, with a nominal value of RON 2.5/share. The shareholders ledger is managed by the Central Depository S.A. On 31.12.2017, the structure of shareholders was:

Shareholder No. of shared Percentage (%)

Solidmet SRL 3,576,953 30.6877%

Expert Placement Services Limited 3,277,526 28.1189%

Nicola Ruxandra-Ioana 2,050,040 17.5879%

Dragoi Anca Mihaela 2,050,040 17.5879%

Other shareholders – individuals 498,549 4.2772%

Other shareholders – legal persons 202,863 1.7404%

Total 11,655,971 100.00%

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The Company is managed in a unitary system and by a Board of Directors, made up of 5 (five) members, for a mandate of 4 (four) years each.

The Board of Directors is assigned to meet all the required and useful actions for the achievement of the Company’s object of activity, except for those provided by law as being in the exclusive charge of the General Meeting of Shareholders. The members of the Board of Directors will exert their mandate with the prudence and diligence of a good administrator, with loyalty, in the Company’s best interest; they will not disclose confidential information and the commercial secrets of the Company they have access to in their position as directors, even after the end of their mandate as directors; they will participate in all General Meetings of Shareholders.

The Board of Directors represents the Company in its relation to third parties and in court through its Chairman. The Board of Directors delegated the Company’s management to the General Manager.

The Board of Directors exerts the current management of the Company, having the assignments provided for in the Articles of Incorporation of COMVEX S.A.

Until the date of 01.08.2017, the Board of Directors had the following composition:

Name and surname Position

Viorel PANAIT Chairman of BoD Dan-Ion DRAGOI BoD Member Corneliu Bogdan IDU BoD Member Representative of Octogon Shipmanagement S.R.L Raimondo DE RUBEIS BoD Member Panait IVANESCU BoD Member

The Ordinary General Meeting of Shareholders decided on August 1st, 2017 to revoke the mandate as director of Raimondo de Rubeis. The revocation of his mandate became effective as of the date the OGMS resolution was adopted.

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During 2017, Raimondo de Rubeis, shareholder and member of the Board of Directors until August 1st, 2017, showed a hostile attitude to the Company, both by abusing some procedural rights, and by taking certain public stands in his relations to authorities (FSA) or private entities (including the financing institutions), or by accessing local and national press.

Therefore, as the present Report shows in the chapter regarding the Company’s litigations, he filed 30 actions in court against the Company. Until the date of this document, all his actions which were already solved (29) were rejected in full by the competent courts.

All these actions had as a direct effect a prejudice on the public image of the Company and the compromise of the investment "Grain Terminal". In addition, as a result of the actions taken by Raimondo de Rubeis, the finalization of the Grain Terminal was delayed. Given these conditions, we specify that the delays in the finalization of the Grains Terminal due to this reason will lead to the loss of the agricultural year 2018.

During 2017, Comvex operated in its terminal as many as 137 ships with raw materials in bulk. Comvex provided services of handling, storage and transshipment of the raw materials in bulk, such as iron ores, coking coal, energy coal, bauxite, coke, scrap iron for clients such as Transport Trade Services, ArcelorMittal Galati, Vitol Switzerland, Brightroad, Alum S.A. Tulcea, Lafarge Romania and Serbia, Danube Shipping Management.

The Extraordinary General Meeting of Shareholders approved on July 8th, 2016 the construction of the GrainTerminal on Berth 80 and the contracting for this purpose of a banking credit, as well as the establishment of the subsequent guarantees required to obtain the credit. After that date and until May 2017, negotiations were conducted with the representatives of the credit institutions, according to the mandate granted by EGMS to the management bodies of the Company. Once the negotiations were finished, in May 2017 the credit agreement was signed with the financing institutions, respectively Raiffeisen Bank and EximBank.

The financing facility was equally split between Raiffeisen Bank and EximBank and also benefited from a guarantee issued by EximBank in the Name and Account of the Romanian State, in amount of EUR 18.144 million. The financing facility will be repaid in quarterly installments, starting with the second half of 2018 and until the end of 2026.

In August 2017 the credit agreement started being executed through the first drawing from the credit.

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The credit facility balance on 31.12.2017 amounted to EUR 9,464,478.64, and on the date of the financial statements drafting (March 2017), it reached EUR 14,876,197.22.

The Romanian General Master Plan of Transport, approved by GD 666/2016 and the Master Plan of Constanța Port, elaborated by Ernst &Young, initiated the Project “Implementation of a specialized berth in a deep-sea zone (Berth 80)”, by converting a berth from ores operations to cereals operation. This is regarded as a project of strategical importance and is also included in the projects portfolio of the Operational Program for Large Infrastructure POIM 2014-2020 (position 31), which is in an implementation and bidding phase on SEAP. The project includes the expansion of the railway infrastructure to the silos park, the modernization of Berth 80, mounting new equipment for berth fit for large size cereal ships mooring.

The implementation of this project will also highlights the benefits of other infrastructure projects achieved by CNAPM, namely:

➢ Constanta South Port, access zone of ships to CDMN; mooring constructions, barges terminal;

➢ Road bridge at km 0+540 of the Danube-Black Sea channel and works related to road infrastructure and access to Constanta port.

➢ Development of railway capacity in river-maritime sector of Constanta Port”

Practically, the implementation of specialized berth no. 80 is the missing piece for the general increase of Constanța Port export performance and a facility for all Romanian farmers for the export of their products in a direct and economically benefiting way. This is because it is well known that the export terminal equipment is owned by the big international traders, which used them as instruments of their commercial activity in the relation with the Romanian cereal producers.

The Company also continued the greening of the terminal, in order to eliminate waste generated periodically by the specific activity developed. In this respect, in 2017, 24,668 tons of waste was processed and recovered in the form of homogeneous products of various minerals with characteristics similar to the materials handled. In order to obtain this quantity for sale, Comvex received invoices from the company dealing with the greening activity of the terminal, based on the contract concluded with it, in the amount of RON 2,220,982, and the amount collected from the sale of this quantity was RON 2,544,154.

The analysis elements from this report are substantiated by the data in the annual financial statements drafted on 31.12.2017 according to the Law of Accounting no. 82/1991, republished, Law 31/1990 republished, with all further amendments and completions, by the provisions included in Order no. 1802/2014 of the Ministry of Finances for the approval of Accounting Regulations regarding individual annual financial statements and the consolidated annual financial statements,

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as well as in compliance of the provisions of OMF no.2861/2009 for the approval of Norms regarding the organization and performance of assets and liabilities elements inventory.

Comvex S.A. has been considering the fulfillment of its obligations under the law as regards the correct, accurate and up-to-date organization and management of the accounting.

The assessment, registration in the unit accounting and presentation of patrimony elements was performed in compliance with the principles, policies and accounting methods. The receivables and debts in foreign currency were converted into RON considering the foreign currency exchange rates on the date of 31.12.2017.

Ratios MU

2016

2017

Handled tons tons 5,957,731 7,211,309

Turnover RON 49,613,198 59,383,097

Total revenues, of which

RON 57,092,899 67,494,100

-Operating RON 53,101,660 63,971,007

-Financial RON 3,991,239 3,523,093

Total expenses, of which:

RON 55,215,711 61,187,496

-Operating RON 51,873,169 57,306,645

-Financial RON 3,342,542 3,880,851

Net profit RON 1,449,270 5,208,361

Fixed assets RON 122,080,185 183,611,035

Short term investments RON 13,046,964 0

Cash available RON 26,852,796 33,234,856

Receivables RON 23,357,289 20,069,253

Stocks RON 18,777,334 13,531,063

Total debts RON 32,142,780 69,969,970

Average no. of employees

no.pers 213 226

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Comvex S.A. handled in 2017 a total quantity of 7,211,309 tons of bulk raw materials. During the whole year 2017 it operated 137 maritime ships. The distribution by types of merchandise of the total quantity handled in the Comvex terminal is shown in the table below:

Type of cargo 2016 2017

Iron ore 1,879,445 2,489,778

Coal 1,385,403 2,075,445

Coke 397,043 230,258

Bauxite 2,215,128 1,920,911

Slag 470,402

Slabs 56,030

Homogeneous of Ores/coal/bauxite 24,682 24,668

Total 5,957,731 7,211,309

32%

23%7%

37%

1%0%

2016

Iron ore

Coal

Coke

Bauxite

Slabs

Homogenues ofOres/coal/bauxite

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Total revenues (RON) 2016

2017

Turnover, of which: 49,613,198

59,383,907

Revenues from sales of goods 2,820,094

2,548,154

Other operating revenues 3,488,462

4,585,269

Financial revenues 3,991,239

3,523,093

57,092,899

Total revenues 667567 67,494,100

The turnover split by clients is shown in the table and graph below:

35%

29%

3%

27%

0%6%

2017

Iron ore

Coal

Coke

Bauxite

Slag

Homogenues of Ores/coal/bauxite

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Client’s name 2016 2017

ArcelorMittal Galati 16,850,899 21,027,349

Alum Tulcea 10,040,676 8,903,473

Transport Trade Services 8,778,824 9,304,537

Brightroad Ltd 6,885,626

Vitol Switzerland 6,417,381 6,116,842

CRH Romania 3,595,473 3,967,987

Danube Shipping Management 1,051,426

Mihtas Turkey 1,126,008 0

Chimpex 953,472 1,338,558

Elixir 821,170 0

Lafarge Serbia 704,885 356,519

Others 324,410 430,779

Total 49,613,198 59,383,097

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16

20

17

Structure of turnover by clients

ArcelorMittal Galati Alum Tulcea Transport Trade Services Brightroad Ltd

Vitol Switzerland CRH Romania Danube Shipping Management Mihtas Turkey

Chimpex Elixir Lafarge Serbia Other

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The iron ore was handled for the steel factories of Galați and Smederevo - Serbia. The coal was unloaded for the complex of Dunajvaros in Hungary, energy coal for the thermal power stations of Romania (Iași and Deva) and the thermal power stations of Bulgaria and Serbia, and the antracit coal, for the steel factories and cement factories of Spain, Italy, Turkey and Egypt. The coke was dispatched to the steel factory of Galați and the factories Lafarge Romania and Lafarge Serbia. Bauxite had as its destination the alumina factory Alum Tulcea.

Raw materials dispatch to beneficiaries was performed either by vessels, or by railway (wagons), or by river (barges).

The turnover has increased by about 20% as compared to the one registered last year as a result of the increase of the quantity of raw materials handled for the clients ArcelorMittal Galati, Transport Trade Services, Brightroad and Danube Shipping Management.

Out of the total of RON 3,523,093 representing other operating revenues, RON 2,222,668 represents the entry into accounting of ores/coal/bauxite homogeneous. The financial revenue consists in revenues from interests received from banks for the amounts the Company holds into its accounts and and revenues from favorable differences of FX rates.

Total expenses 2016 2017

RON

Total expenses with personnel 21,111,462 21,421,417

Expenses with materials, consumables, other auxiliary materials

5,201,324

5,660,722

Cost of sales of goods 2,465,144 2,226,268

Expenses with power electricity and water 3,577,083

3,914,893

Expenses with rents 4,088,453 6,198,427

Expenses with amortization and fixed assets depreciation

2,910,212

3,268,051

Expenses with terminal greening 2,464,895

2,220,982

Other operating expenses, including services from third parties

10,054,583

12,395,885

Financial expenses 3,342,558 3,880,851

Total expenses

55,215,714 61,187,496

Expenses with personnel include all the expenses related to personnel and Directors of the Company, including protective food, protection equipment and transport of personnel. Cost of sales of goods represents the entry into accounting of the homogeneous ores/coal/bauxite.

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Out of total expenses with rents, RON 3,450,677 represents the rent to CNAPM. Expenses with rents went up as compared to the previous year as a result of signing in 2017 with CNAPM the long-term Rent Contract – valid starting March 2017 and until December 2049, at a contractual tariff of EUR 0.08/sqm/month. Thus, in accordance with the legal provisions in force during March 2017, the Company managed to complete the negotiations with CNAPM and to sign the contract for renting the land. The conclusion of this contract is an essential aspect for the Company’s activity, as it enabled the regulation of a historical situation, by first and foremost securing, for a long-term period, the rights to use the waterborne transport infrastructure and the conditions of this use. Moreover, the Company’s rights over the goods it owns, as well as its long-term trade operations, were also secured.

The rest of expenses with rents represent rents for specialized equipments and machineries for cargo handling activity.

The expenses with amortization also include depreciation adjustments for fixed assets, including those in conservation. In 2017, a number of 111 fixed assets were kept in conservation, such as equipments and plants in view of preventing their operational depreciation. On December 31st, 2017 they were analyzed by an expert evaluator for the depreciation test and the depreciations found out were included in costs.

Other operating expenses include expenses with insurances, repairs, telecommunications, other services from third parties.

Out of total financial expenses, RON 319,132 represents expenses with interests related to long term investment credits contracted to finance investments and the expenses related to the leasing contracts. The rest of financial expenses are negative differences of foreign currency exchange rates resulted from reevaluations.

Net profit

The Company registered in 2017 a net profit of RON 5,208,361, as compared to RON 1,449,270 in 2016. The profit increase was generated by the turnover increase based on the incresed quantity of handled raw materials.

Fixed assets

On December 31st, 2017, the Company revised the value of tangible assets existing in its patrimony by using the opinion of an authorized valuator, ANEVAR. The surplus, respectively the minus resulted from the tangible assets revaluation, such as constructions, was recorded as reserves from revaluation, increasing or diminishing, as the case may be, the equity value. The depreciation recorded for the other categories of tangible assets, including for fixed assets in conservation in amount of RON 450,683, was recorded as expenses for the fixed assets depreciation.

The increase of non-current assets was mainly generated by the increased value of fixed assets in progress for the investment “Grain Terminal”, amounting of RON 32,123,700 at the date of

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31.12.2017, as well as to the advanced payments made to the assets suppliers related to that investment – RON 26,448,239 at the date of 31.12.2017 as compared to RON 942,999 at the date of 31.12.2016.

The other assets in progress are represented by equipment and machinery used in port operation process at minerals terminal, being investments that are meant to offer the Company the capability to cover both the current operating needs, but also to have in due time the operational capacity to fructify opportunities that may arise on steel industry. Thus, the market of ores, through its specificity, periodically presents certain production peaks, and in order to be able to capitalize and respond promptly to these production peaks that may appear on the market, the Company has taken the strategic decision to keep some investments in progress materialized in equipment and machinery that substantially increase the handling capacity of minerals.

Stocks

Stocks went down as compared to the end of 2016 due to the reduction of the stocks of materials for investments as the investments were realised. Thus, the amount of RON 4,195,806 representing materials for the investment “Mineral wastes processing plant” was moved to investments in progress and the plant was finalised in March 2018.

Receivables

Receivables in balance at 31.12.2017 went down as compared to the end of 2016, a drop generated by the repayment of EUR 1.24 million from the credit granted to CDRV Associates SRL and implicitly by the diminish of the amounts to be collected from that company.

Short term investments and cash available

The cash available at 31.12.2017 amounted to RON 33,234,856, as compared to RON 26,852,796 at 31.12.2016. The increase is due both to the increase of turnover in 2017, and to the repayment at the end of 2017 of EUR 1.24 million from the credit granted to CDRV Associates SRL.

In 2014, the conditions were created to start a construction project aimed to diversify the Company’s activity. In this respect, a credit worth EUR 2.58 million was granted to CDRV Associates SRL, the developer of the real estate project, a company in which Comvex holds the position of founder and 20% of the share capital. The project is in course of sale by apartments sales, the loan being repaid with priority on the way the apartments are sold. The credit balance at 31.12.2017 was EUR 1.33 million and at the date of drafting of the financial statements (March 2018) the credit balance is EUR 1.06 million.

In order to use the funds obtained to ensure its own contribution to the development of the "Grain Terminal" investment, in 2017 the Company repurchased the investment in monetary units Eurofond BRD, shown in the balance sheet as a short-term investment – amounting to RON 13,046,964 at the end of 2016.

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Debts

Out of the total debts in balance at the end of 2017, amounting RON 69,969,970, the amount of RON 54,990,065 represents the sums due to credit institutions, of which RON 44,101,631 stands on the balance of the banking credit contracted to finance the cereals terminal.

On 31.12.2017, the Company had ongoing litigations with Compania Nationala Administratia Porturilor Maritime SA Constanta (CN APM), generated by Comvex’s refusal to pay the tariff for using the port area (UDP).

Thus, beginning with 2015, Comvex refused the payment of invoices related to the tariff to use the port area (UDP tariff) issued by CN APM, based on the following considerations:

- Unilateral increase by CN APM of the tariff to use the port area without obliging the contractual conditions, in the context of a pre-existing contract imposing the parties’ obligation to invoke specific reasons for the increase, as well as the obligation for the parties to negotiate and the requirement to obtain Comvex’s agreement in this case;

- CN APM’s failure/wrong meeting of its contractually assumed obligations.

In this sense, beginning with January 2015, Comvex refused to pay the increased tariff from EUR 0.05 /m2/month to EUR 0.08/ m2/month as the latter tariff had no correspondent in the contractual mechanism and beginning with April 2015, Comvex invoked the exception for failure to execute the counter services related to the tariff to use the port area of EUR 0.05 / m2/month regulated in the contract with CN APM. Through its refusal to pay the tariff to use the port area, COMVEX has consistently detailed the reasons underlying such refuses, attaching in this sense justifying photo boards, showing with no doubt CN APM failure/wrong meeting of its contractually assumed obligations.

The value of the refusals related to the tariff of EUR 0.05 /m2 reaches RON 2,813,425.5 without VAT, a provisioned amount, avoiding in this way the impairment of the future financial position of the Company. The total value of the refusals related to the tariff of EUR 0.03 /m2 amounts to RON 2,536,826.84 without VAT, an amount which cannot impair the financial position of the Company because, as mentioned above, there is no contractual correspondent for that tariff.

On 31.12.2017, the total value of penalties reached RON 4,478,885 (penalties calculated for all invoices rejected on payment related both to the EUR 0.05 tariff and for the increased one of EUR 0.08).

Beginning with May 2017, the courts of law registered 30 files, Plaintiff - Raimondo de Rubeis as shareholder, owner of 2250 shares and non-executive administrator of Comvex until 01.08.2017, the object of the files being the following:

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➢ 27 files had as object the requests for a main intervention against the registration applications with Constanta Trade Register Office of OGMS Resolutions of COMVEX adopted on 27.04.2017, and also against the registration applications made ex officio by the authorities with competences in this sense (ANAF). All these requests were rejected by the Constanta Tribunal, respectively by the Constanța Court of Appeal, and the pronounced decisions were definitive.

➢ 1 file having as object an action for the annulment of GMA resolution dated 20.09.2016. By

sentence no. 847/06.11.2017, Constanta Tribunal rejected the action filed by Plaintiff Raimondo de Rubeis, considering it to be prescribed. The decision is not definitive;

➢ 1 file having as object the action for annulment of GMS resolutions of 27.04.2017. By

sentence no. 1012 pronounced on 22.12.2017 Constanta Tribunal rejected the action filed by Plaintiff Raimondo de Rubeis, considering it to be ungrounded. The decision is not definitive

➢ 1 file having as object claims following its revocations from the position of administrator of the Company by the resolution of the Ordinary General Meeting of Shareholders of August 1st, 2017.

RON

Gross profit resulted at 31.12.2017:

6,306,604

Tax on the related profit 1,098,243

Profit after tax at 31.12.2017: 5,208,361

Legal reserves 315,330

Accounting loss covering 0

Net profit to be distributed at 31.12.2017 4,893,031

Any decision regarding profit distribution should consider the development of the investment “Grain Terminal” and its funding conditions. Considering the above, the Board of Directors proposes that the Company does not distribute any dividends for 2017 and the profit to remain undistributed. We propose to the General Meeting of Shareholders to approve the following:

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The net profit to be distributed at 31.12.2017, amounting to RON 4,893,031 remains undistributed and consequently, no dividends would be paid for the financial year 2017.

In 2017, the total capital expenditures amounted to RON 60.3 million, out of which RON 32.6 million represent investments in progress, RON 27 million advances to the suppliers of fixed assets related to the grain terminal, and the remaining RON 0.7 million represents aquisitions of equipment and installations. The investments made in 2017 aimed at the development and diversification of the Company’s activity, its consistent compliance with the environmental protection norms, as well as the improvement of working conditions, working environment and work safety for the employees of Comvex. The main capital expenditures incurred in 2017 were related to the "Grain Terminal" investment, respectively RON 53.9 million, out of which RON 27 million advances to suppliers and RON 26.9 million in current investments in progress. In 2017 the following important contracts were signed with the suppliers of equipment and constructions for the cereals terminal:

- the contract for the supply of storage cells and handling equipment for silo, signed with AG Growth International Inc./FRAME s.r.l.;

- the contract for the construction of the foundation frames and tunnels for storage cells and the foundation construction for technological equipment and steel cannons and various concrete platforms, signed with Tracon SRL;

- the contract for the construction, delivery and mounting of two shippers of 1500t/h each, signed with Neuero Industrietechnik Gmbh;

- the contract for the execution of bored piles, signed with Zublin Romania SRL; - the contract for the transformation of two cranes type Takraf 16t for ores unloading into

two cranes with the lifting capacity of 16t (including gripper) to download cereals, signed with Butan Grup SRL. As for the actual stage of the works concluded until the end of 2017, the company Zublin, the producer of piles, manufactured 100% of the piles for the cereals storage cells and those for the foundation works for other structure at 50%. The execution works of foundation frames and tunnels were about 50% accomplished by Tracon. Other important capital expenditures, respectively RON 5 million, were made for the development of the investment “Mineral wastes processing plant”, commissioned in March 2018.

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Comvex’s orientation for 2018 is materialized in the following priority objectives: - continue the implementation of the "Grain Terminal" investment so that it will become operational at the beginning of 2019; - consistent and continuous improvement of the activity of the minerals terminal and performance at high standards of the services offered to the Company’s clients; As for the minerals activity, it is estimated an increase of the quantity of raw materials handled through Comvex terminal as compared to 2017. Thus, increased quantities of coal and coke are expected to be handled for the client Transport Trade Services. Regarding the amounts of iron ore and slag handled for ArcelorMittal Galați, we highlight possible changes on the field market, but we estimate no significant changes during the following period, considering the long-term trade flow in this field, as well as the industry’s strategic interests. The other clients existing in 2017 will maintain the quantities at least at the same level as in the previous year. Given such conditions, the turnover is estimated to rise by about 17% as compared to that achieved in 2017. The expenses for 2018 were budgeted starting from the analysis of the expenses made in the previous year and making adjustments depending on the new assumptions and the estimated business volume for 2018. Alsothere were budgeted the expenses with amortization for the mineral wastes processing plant, commissioned at the beginning of 2018, as well as expenses related to the implementation of investment for the grain terminal, respectively financial expenses and expenses with personnel. Therefore, the total operating expenses will increase by about 20% as compared to the previous year. Estimations for 2018 are:

- Turnover of EUR 15.2 million - EBITDA EUR 2.3 million - Net profit EUR 1.06 million

We propose the Ordinary General Meeting of Shareholders to approve the revenues and expenses for 2018 as they are presented to the shareholders.

Viorel Panait – Chairman of the Board of Directors