Company news February 14, 2017

Preliminary 2016 Financial Report

BVB Group registered increased results, 4Q being for BVB Group a period of strengthening the 2016 annual results. · Consolidated operating revenue recorded in 4Q 2016 increased by 2% compared with 4Q 2015 to RON 8.63 mn, the biggest part being generated by the BVB trading segment (over RON 5 mn). BVB Group operating expenses continued a downward trend. In the same time the operating profit recorded in 4Q 2016 increased to a level of RON 1.93 mn. · BVB Group consolidated net profit rose 49% in 4Q 2016 compared to the same period of 2015 to RON 3.58 mn, mainly due to results registered by the operations trading segment of the Group. · Since the beginning of 2016, the increase by nearly 4% of the consolidated operating revenue and the decrease with over 6% in the consolidated operating expenses, generated together an advance of 89% of the operating profit to RON 6.07 mn ( 2015 : RON 3.22 mn) and 8 percentage points improvement in operating margin. The trading segment of the Group generated an operating profit in 2016 of RON 5.41 mn, representing the main contributor in achieving the Group's operating result. · The consolidated net financial revenue of 2016 year of RON 3.09 mn (2015: RON 4.74 mn) was recorded mainly from the financial investments in government securities and bank deposits of RON 2.99 mn (2015: RON 3.32 mn). This decline is a result of the low level of liquidity available to the company after the dividend payments for 2015 year and the drop in yields for the government securities and bank deposit. The decrease of the financial result in 2016, was driven mainly by the impact of lower unrealized exchange differences, recorded from the year end reevaluation of the investments in government securities and bank deposits in foreign currencies, to RON 0.57 mn (2015: EUR 1.8 mn). · The consolidated net profit of the 2016 year was RON 7.87 mn, up 19% from the same period of the last year. The trading segment of the Group generated 85% of the 2016 consolidated net profit, while net margin increased to 25% from 22% during the previous year (2015)