S.C. Fondul Proprietatea SA · BVB:FP
S.C. Fondul Proprietatea SA — Fondul Proprietatea — Shareholder Meeting (April 2013)
36 slides from S.C. Fondul Proprietatea SA's shareholder meeting presentation, Apr 25, 2013
Slide 1: Fondul Proprietatea Annual General Shareholders Meeting
Fondul Proprietatea Annual General Shareholders Meeting 25 April 2013 This material is intended solely for the recipient and should not be reproduced, copied or re-transmitted. Not intended for public use.
Slide 2: Disclaimer
DISCLAIMER 1 Disclaimer This presentation and its contents are confidential and must not be distributed, published or reproduced (in whole or in part) by any medium or in any form, or disclosed or made available by recipients to any other person. By attending this presentation and/or receiving this
Slide 3: Disclaimer
DISCLAIMER 2 Disclaimer This presentation is addressed only to qualified investors within the meaning of Article 2(1)(e) of the Prospectus Directive (“Qualified Investors”). The Fund has not authorized any offer to the public of securities in any member state of the European Economic Area (the “EEA”
Slide 4: Fund Information
Fund Information This material is intended solely for the recipient and should not be reproduced, copied or re-transmitted. Not for public use.
Slide 5: The Fund – Key Facts
ANNUAL GENERAL SHAREHOLDERS MEETING 4 The Fund – Key Facts Fund Details as at 31 March 2013 Dividend per share (RON) Base Currency RON 0.09000 Fund Launch Date 28 December 2005 0.08160 Franklin Templeton Appointment Date 29 September 2010 Listing Date 25 January 2011 Values1 RON EUR2 0.06000 NAV 15.
Slide 6: FTIML – 2012 Key Milestones
ANNUAL GENERAL SHAREHOLDERS MEETING 5 FTIML – 2012 Key Milestones 4/12 11/12 GSM approval of the second Buyback programme and Extension of the mandate to list the Fund on the WSE cancellation of the shares repurchased in the first Buyback / until 30 June 2013 / 2nd Fondul Proprietatea Analyst and In
Slide 7: Net Asset Value
ANNUAL GENERAL SHAREHOLDERS MEETING 6 Net Asset Value Cumulative Performance Fourth Quarter 2012: 20.00% Cumulative Performance 2012: 8.91% NAV (RON) / Share Dividend 0.03854 1.1951 1.1922 1.1572 1.1688 1.1585 1.1507 1.1568 1.1290 1.1371 0.9601 0.9516 0.9429 0.9449 0.9476 0.9317 1/12 2/12 3/12 4/12
Slide 8: Shareholders Structure
ANNUAL GENERAL SHAREHOLDERS MEETING 7 Shareholders Structure1 Evolution (% Held) 100% 6% 9% 8% Largest Shareholders2 11% 11% 12% 12% 11% 11% 12% 14% Elliott Associates 14.95% 20% 27% City of London Investment Management3 9.69% 75% 10% 37% 9% 43% The Royal Bank of Scotland3 5.39% 48% 50% 52% 54% 9% 5
Slide 9: FP Share Price and Discount
ANNUAL GENERAL SHAREHOLDERS MEETING 8 FP Share Price and Discount 2012 FP Share Price¹ (RON) and Discount (%) 0.65000 65% 0.55000 55% 0.45000 45% 0.35000 35% 1/12 2/12 3/12 4/12 5/12 6/12 7/12 8/12 9/12 10/12 11/12 12/12 1/13 2/13 3/13 4/13 FP Share Price Discount Discount ² 43.0% Number of Shares T
Slide 10: Portfolio Performance
Portfolio Performance This material is intended solely for the recipient and should not be reproduced, copied or re-transmitted. Not for public use.
Slide 11: Portfolio Structure – 31 March 2013
ANNUAL GENERAL SHAREHOLDERS MEETING 10 Portfolio Structure – 31 March 2013 Net Cash & Receivables Others Net Cash & Banks 5% 2% Receivables 3% 5% Power Utilities: Infrastructure Generation 3% 23% Listed 42% Power & Gas Utilities: Unlisted Transport, Oil & Gas 53% Distribution & 43% Supply 21% • As a
Slide 12: Largest Holdings by NAV
ANNUAL GENERAL SHAREHOLDERS MEETING 11 Largest Holdings by NAV NAV Majority as at 31 March 2013 % in NAV No. Portfolio Company Status Shareholder % Stake1 (EUR mn) as at 31 March 2013 1 OMV Petrom Listed OMV 20.1% 1,162.5 33.7% 2 Hidroelectrica Insolvency Romanian State 19.9% 453.2 13.1% 3 Romgaz IP
Slide 13: Portfolio Structure – SPO & IPO Calendar
ANNUAL GENERAL SHAREHOLDERS MEETING 12 Portfolio Structure – SPO & IPO Calendar Privatization Progress Market Value Company Share Sale1 Offering Stake (mn EURO) Seller Investment Consortium Selected Comments Transelectrica SPO – April 2012 15.0% 37.62 Romanian State BCR, Swiss Capital, Intercapital
Slide 14: Active Management – Actions to Protect and Increase the Value (I)
ANNUAL GENERAL SHAREHOLDERS MEETING 13 Active Management – Actions to Protect and Increase the Value of Underlying Holdings (I) General Actions: • Active involvement in portfolio companies through Board representation • Participation to public consultations regarding new legislation relevant for com
Slide 15: Active Management – Actions to Protect and Increase the Value (II)
ANNUAL GENERAL SHAREHOLDERS MEETING 14 Active Management – Actions to Protect and Increase the Value of Underlying Holdings (II) Most Significant Actions at the Board Level: • Worked closely with the Judicial Administrator of Hidroelectrica to ensure a transparent and efficient reorganization proces
Slide 16: Active Management – Board Members
ANNUAL GENERAL SHAREHOLDERS MEETING 15 Active Management – Board Members Holdings % Stake¹ % in Total NAV¹ No. of Board Members² No. of Directors Nominated by FP² 1 OMV Petrom SA 20% 32.6% 9 1 2 Romgaz SA 15% 8.7% 5 1 3 Complexul Energetic Oltenia SA 22% 5.9% 7 2 4 Nuclearelectrica SA 10% 4.3% 7 1 5
Slide 17: Top 20 Portfolio Holdings – Key Financials
ANNUAL GENERAL SHAREHOLDERS MEETING 16 Top 20 Portfolio Holdings – Key Financials EBITDA (RON mn) Net Profit (RON mn) Top 20 Holdings1 2010 2011 2012 2010 2011 2012 1 OMV Petrom SA 5,301.9 7,524.3 8,270.2 2,189.7 3,758.6 3,946.1 2 Hidroelectrica SA 1,349.9⁷ 873.6⁷ 897.9⁷ 292.3 6.5 (169.8) 3 Romgaz S
Slide 18: Hidroelectrica – Insolvency
ANNUAL GENERAL SHAREHOLDERS MEETING 17 Hidroelectrica – Insolvency Current Status: • Insolvency proceedings are ongoing; • Several operational measures have already been implemented, with direct impact on Hidroelectrica’s future cash flow; • Reduction of Hidroelectrica’s high operating costs is ongo
Slide 19: Hidroelectrica – Foregone Profits
ANNUAL GENERAL SHAREHOLDERS MEETING 18 Hidroelectrica – Foregone Profits Hidroelectrica Net Income (mn RON)1 OPCOM Market Prices2 1,500 Year Average Price (RON / MWh) 2009 155.35 1,000 2010 156.31 500 2011 221.20 2012 217.21 0 2009 2010 2011 2012 Actual Profits Forgone Profits • In 2009, Hidroelectr
Slide 20: Hidroelectrica – Impact of Insolvency Measures
ANNUAL GENERAL SHAREHOLDERS MEETING 19 Hidroelectrica – Impact of Insolvency Measures Utilisation of short-term credit lines (mn RON) Gross profit (RON mn). Estimated gross profit for 2013 – RON 430 mn. 52 48 44 35 -360 -417 -497 -611 -210 -781 06 / 2012 12 / 2012 01 / 2013 02 / 2013 03 / 2013 06 /
Slide 21: Future Developments
Future Developments This material is intended solely for the recipient and should not be reproduced, copied or re-transmitted. Not for public use.
Slide 22: Buy-Back Program (I)
ANNUAL GENERAL SHAREHOLDERS MEETING 21 Buy-Back Program (I) Second Buy-Back Program: • New buy-back program to repurchase 1.1 bn shares, equivalent to 7.9% of the Fund’s issued share capital was approved by shareholders at the 25 April 2012 Extraordinary General Shareholders Meeting • The execution
Slide 23: Buy-Back Program (II)
ANNUAL GENERAL SHAREHOLDERS MEETING 22 Buy-Back Program (II) Average Daily Turnover in March 2013 (EUR thousands) 4,389 1,257 450 325 807 700 129 48 FP OMV Petrom SIF Moldova SIF Oltenia Banca Transilvania BRD Transgaz Transelectrica Second Buy-Back Program ADTV (March 2013) 31.0 mn shares / EUR 4.4
Slide 24: Secondary Listing on the Warsaw Stock Exchange
ANNUAL GENERAL SHAREHOLDERS MEETING 23 Secondary Listing on the Warsaw Stock Exchange On 27 June 2012, the Fund’s shareholders: • Approved the details of the secondary listing plan on the WSE. • Empowered the Fund Manager to file the documentation for the secondary listing by 31 December 2012. • Giv
Slide 25: Secondary Listing on the WSE – Institutions
ANNUAL GENERAL SHAREHOLDERS MEETING 24 Secondary Listing on the WSE – Institutions Consortium Member Consortium Member Consortium Member Securities Joint Global Coordinator Joint Global Coordinator Co-Manager Co-Manager and Joint Bookrunner and Joint Bookrunner Auditor PR agencies GolinHarris, Local
Slide 26: EGM and OGM Agendas
EGM and OGM Agendas This material is intended solely for the recipient and should not be reproduced, copied or re-transmitted. Not for public use.
Slide 27: EGM Agenda – April 2013
ANNUAL GENERAL SHAREHOLDERS MEETING 26 EGM Agenda – 25 April 2013 • The approval of the EGM agenda • The amendment of the Constitutive Act • The ratification and the approval of all resolutions taken by the EGM meetings concluded, adopted and issued in the name of SC Fondul Proprietatea SA through F
Slide 28: OGM Agenda – April 2013
ANNUAL GENERAL SHAREHOLDERS MEETING 27 OGM Agenda – 25 April 2013 • The approval of the OGM agenda • The approval of the Annual Activity Report of Sole Administrator of SC Fondul Proprietatea SA for the financial year 2012, including the financial statements for the year ended on 31 December 2012 pr
Slide 29: OGM Agenda – April 2013
ANNUAL GENERAL SHAREHOLDERS MEETING 28 OGM Agenda – 25 April 2013 • Increasing the gross monthly remuneration for each member of the Board of Nominees to RON 15,000 starting with the date of issuance of the resolution of the ordinary shareholders’ meeting. The mandate agreements will be amended acco
Slide 30: OGM Agenda – April 2013
ANNUAL GENERAL SHAREHOLDERS MEETING 29 OGM Agenda – 25 April 2013 • The approval of the Addendum 1 to the audit contract concluded between Fondul Proprietatea and Deloitte Audit SRL, for providing the consent to use audited IFRS financial statements in the Listing Memorandum • The empowerment, with
Slide 31: Income Statement
ANNUAL GENERAL SHAREHOLDERS MEETING 30 Income Statement 2010 2011 2012 RON mn Audited Audited Audited Revenues from current activity, out of which: 576.6 617.9 871.8 • Revenues from financial assets 179.0 519.1 619.0 • Interest Income 131.5 41.1 34.9 • Reversal of impairment adjustments & provisions
Slide 32: Balance Sheet
ANNUAL GENERAL SHAREHOLDERS MEETING 31 Balance Sheet 31 December 2010 31 December 2011 31 December 2012 RON mn Audited Audited Audited Intangible assets - - 0.3 Financial assets 10,890.5 10,627.9 11,097.8 Non–current assets - Total 10,890.5 10,627.9 11,098.1 Current assets - Total 1,332.4 549.2 776.
Slide 33: Dividend Income – Top 20 Portfolio Companies
ANNUAL GENERAL SHAREHOLDERS MEETING 32 Dividend Income – Top 20 Portfolio Companies PROFIT DIVIDEND PAYOUT % FP NET DIVIDEND Top 20 Holdings1 2012 2011 2010 2012 2011 2012 2011 1 OMV Petrom SA 3,946.1 3,758.6 2,189.7 47 46 353.1 201.6 2 Hidroelectrica SA (169.8) 6.5 292.3 – 19.9 – 52.5 3 Romgaz SA 1
Slide 34: Dividend
ANNUAL GENERAL SHAREHOLDERS MEETING 33 Dividend Dividend policy: • In the absence of exceptional market conditions or circumstances, the Fund Manager intends to recommend to shareholders the distribution of 100% of distributable profits each year; • Distributable profits are broadly defined as: gros
Slide 35: Thank you!
Thank you! This material is intended solely for the recipient and should not be reproduced, copied or re-transmitted. Not for public use.
Slide 36: Fondul Proprietatea Franklin Templeton Investment Management UK Bucharest Branch
Fondul Proprietatea Franklin Templeton Investment Management UK Bucharest Branch Premium Point Buzesti Street 78-80, 7th-8th floor 1st District 011017 Bucharest Romania This material is intended solely for the recipient and should not be reproduced, copied or re-transmitted. Not for public use. FTIF
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