Current Report according to: Law 24/2017, CNVM Regulation no. 1/2006, BVB Market Operator Code

Report date: October 31, 2017

Regulated market on which the issued securities are traded: Bucharest Stock Exchange, Premium Category

To: BUCHAREST STOCK EXCHANGE FINANCIAL SUPERVISION AUTHORITY Financial Instruments and Investments Sector Important Event: Availability of the Board Report and Q3 2017 Financial Statements

  1. Summary of the Q3 2017 Board Report

    The Q3 2017 results and the objectives of the following period are in agreement with the "2014- 2018 Investment Policies Statement" and "2017 Activity Program" approved by the General Meetings of Shareholders.

    Portfolio Structure

    The listed shares portfolio holds the main weight of 78.4% of the total assets under management, while the weight of the unlisted shares is 8.9% due to the reorientation of the investment policy under the given market conditions. The financial and energy sectors (with 48.3% and 19.3% of the total assets) have remained the main sectors in the listed portfolio. On the one hand, we have continued the process of reducing the number of the portfolio holdings, through the full sale of the stocks in case of eight issuers and on the other hand we have increased the exposure per issuer, with positive influences on the entire portfolio performance.

    Financial Performance

    The net profit booked in Q3 2017 of 131.4 million lei represents 138% of the Budget provision for 2017. The net revenue from assets sale hits 68 million lei and the investments in securities of 202 million lei represents 81% compared to 2017 target. The total value of the assets under management reach 1848 million lei, which represent an increase of 10% compared to Q3 2016.

    The investment process - is running in accordance with the strategies set for the assets portfolios, namely:

    • Increase for the Majority Holdings portfolio - "private equity" type approach within existent majority holdings (real estate, agriculture, other sectors);

    • Recalibration for the CORE - listed portfolio which offers liquidity to SIF Moldova's assets, representing the main income generator;

    • Restructuring for SELL portfolio - further restructuring / sale of the "historic" equity portfolio.

      This strategy provides the answer of the need to generate higher yields for shareholders, using the exposure in the real economy through private equity-type investments in the most performing sectors from Romania. The development of the "Majority Holdings" portfolio is the main objective and the increased value of this portfolio can be obtained by implementing some projects in several fields of activity, the development of the current projects or new businesses, either directly, or through specialized companies. The research and the investment process are focused on fields with proven potential, such as the agricultural, real estate, etc.

      On the report issue date, significant positive evolutions have been registered in the development of the following main projects runing through the subsidiaries of SIF Moldova Group:

      • "Baba Novac Residence" real estate project developed by Tesatoriile Reunite SA Bucuresti

        - the building of the residential complex comprised of 6 blocks with 363 apartments and 436 parking spots (above and underground) has started. The construction is on schedule and the sales rate is above that the forecast.

      • Blueberry Farm Project developed by Agrointens SA - the project regarding the extension of the Blueberry Farm is currently being implemented. Thus, new lands were purchased in Vistea village (5 hectares), and Mandra village (44 hectares). Through this extension, the total land area included in this project reached 76 hectares (18 ha are cultivated and 46 ha are in the process of sowing).

  2. Q3 2017 Board Report availability

In compliance with the 2017 financial communication calendar, we hereby inform the investors that starting with October 31, 2017, at 18:30 hours, it will be made available:

  • "SIF Moldova's Board of Directors Report for Q3 2017" drafted in compliance with the Law 24/2017, Regulation 1/2006 and Norm 39/2015;

  • "Special purpose financial information for the nine months' period concluded on September 30, 2017".

(www.sifm.ro/Regular reports/2017).

Claudiu Doros CEO

Michaela Puscas Internal Control

SIF Moldova SA published this content on 31 October 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 31 October 2017 16:37:07 UTC.

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