of the Board of Directors of Farmaceutica REMEDIA S.A.

  1. Important events to report

During the period 01.01.2018 – 30.06.2018 there were no important events that have a particular impact on the financial position of the company Farmaceutica REMEDIA S.A.

  1. The general description of the financial position and of the issuer’s performances and of its branches afferent to the 1st semester of 2018

During the period 01.01.2018 – 30.06.2018, the commercial company Farmaceutica REMEDIA S.A. recorded the following consolidated financial results:

 * Including trade discounts granted/received

A breakdown of sales of goods by segment of activity is presented as follows:

Lei

REMEDIA Pharmacies 46.823.805 22,24%
Distribution 112.734.657 53,55%
Hospitals & Private Clinics Distribution 39.084.787 18,57%
Other operations 11.880.349 5,64%
Total 210.523.598 100,00 %

Other operating revenues” mainly comprise the following categories of revenues:

  • collected rents
  • marketing services
  • sale of assets
  • logistic services
  • other services

3. The financial statements as at 30.06.2018 were not audited by the independent financial auditor.

*including financial leasing

Notes:

1) Current liquidity – the level of the indicator reflects a good payment capacity, therefore a low risk for creditors, certifying that the companies are able to cover short-term debts based on receivables and cash availability.

2) Indebtedness degree expresses the effectiveness of credit risk management, indicating potential funding, liquidity problems, with influences in meeting the commitments. In the case of Farmaceutica REMEDIA S.A. there is no risk while for Farmaceutica REMEDIA Distribution & Logistics SRL the value of the indicator indicates an average risk. In calculating this indicator, the borrowed capital comprises both bank loans and finance lease liabilities.

3) Turnover speed for client debit items expresses the effectiveness of the company in collecting its claims, i.e. the number of days until the debtors pay their debts to the company. Considering the dynamics of sales and the specificity of receivables collections in the distribution of drugs, we believe that the indicator’s value is a normal one for both companies, in the given circumstances. The dynamics of this indicator was for Farmaceutica REMEDIA S.A.  pharmacies the following: 30 days for the first semester of 2017, 29 days in the second quarter of II 2017 and 47 days in the 2nd quarter of 2018. In the case of Farmaceutica REMEDIA Distribution & Logistics SRL, we have :117 days for the 1st semester 2017, 126 days in the 2nd quarter of 2017 and 110 days in the 2nd quarter of 2018.

4) The days on hand indicator value (66 respectively, 47 days) can be considered to fall within the activity specificity, exceeding the limit imposed by the internal procedures of the company (45 days) in the case of Farmaceutica REMEDIA S.A. In the case of Farmaceutica REMEDIA S.A. the indicator had the following evolution: 64 days in the first semester of 2017, 68 days in the 2nd quarter of 2017 and 69 days in the 2nd quarter of 2018. At Farmaceutica REMEDIA Distribution & Logistics SRL we have: 34 days for the 1st semester of 2017, 32 days for the 2nd quarter of 2017 and 50 days for the 2nd quarter of 2018.

Dear investors,

The full semester version of the Half-Year Report 2018 will be available on the issuer’s own website and on the link from the IRIS platform.

President of the Board of Administrators –

“TARUS” – Valentin Norbert Tarus e.U.

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