S.C. Fondul Proprietatea SA · BVB:FP
S.C. Fondul Proprietatea SA — Fondul Proprietatea — H1 2014 Earnings Presentation
34 slides from S.C. Fondul Proprietatea SA's earnings presentation, Aug 14, 2014
Slide 1: 2014 First Half Results Presentation
2014 First Half Results Presentation 14 August 2014 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 is made solely to the intended recipient and should not be distributed to, or acted upon by, any other person. It is for general information only and reflects the personal views of the presenter. Nothing herein is intended to constitute advice on investment,
Slide 3: Fund Information
Fund Information FONDUL PROPRIETATEA
Slide 4: The Fund – Key Facts
H1 2014 RESULTS PRESENTATION 3 The Fund – Key Facts RON EUR FP Share Price⁵ and NAV Fund Details as at 31 July 20141 NAV 14.76 bn 3.34 bn2 1.20 NAV/Share 1.2489 0.28262 Price/Share3 0.8360 0.1892 0.90 Discount3 33.06% 33.06% Number of Shares in Issue 13,538,087,407 0.60 Number of Paid Shares 13,174,
Slide 5: Distributions to Shareholders
H1 2014 RESULTS PRESENTATION 4 Distributions to Shareholders Distributions per Share (RON)1 0.08160 0.05000 0.03854 0.04089 0.03141 0.00250 0.00660 2006 2007 2009 2010 2011 2012 2013 Share Buy-Back Activity (for the 12 Months Ended) Mn Shares 13,407.6 13,172.5 12,071.9 11,820.3 1,100.0 240.3 0.0 252
Slide 6: Shareholders Structure
H1 2014 RESULTS PRESENTATION 5 Shareholders Structure1 Evolution (% Held) Largest Shareholders2 100% 2% 2% 2% 2% 2% 2% 2% 3% Elliott Associates 15.22% 6% 9% 8% 4% 8% 9% 9% 10% 10% 9% 9% 10% 10% 10% 10% 9% 8% 14% 9% 9% 9% 9% 20% 27% Total Number of 75% 10% 7,885 37% Shareholders1 9% 43% 48% 50% 52% 5
Slide 7: Net Asset Value
H1 2014 RESULTS PRESENTATION 6 Net Asset Value NAV (RON)/Share 1.4000 1.3000 1.2000 1.1000 1.0000 0.9000 12/10 1/11 3/11 5/11 7/11 9/11 11/11 1/12 3/12 5/12 7/12 9/12 11/12 1/13 3/13 5/13 7/13 9/13 11/13 1/14 3/14 5/14 7/14 NAV Distribution Adjusted NAV 34.4% Discount3 • From June to November 2012,
Slide 8: Contributors to NAV Performance for H1 2014
H1 2014 RESULTS PRESENTATION 7 Contributors to NAV Performance for H1 2014 TOP PERFORMERS % change in NAV performance Change in NAV per share Company Status % in Total NAV3 for H1 2014 (RON) OMV Petrom SA Listed 34.9% 0.87% 0.0111 Electrica Furnizare SA1 Unlisted 0.6% 0.59% 0.0074 Transelectrica SA
Slide 9: Contributors to NAV Performance for Q2 2014
H1 2014 RESULTS PRESENTATION 8 Contributors to NAV Performance for Q2 2014 TOP PERFORMERS % change in NAV performance Change in NAV per share Company Status % in Total NAV3 for Q2 2014 (RON) OMV Petrom SA Listed 34.9% 4.15% 0.0499 Electrica Furnizare SA1 Unlisted 0.6% 0.62% 0.0074 Romgaz SA Listed 1
Slide 10: NAV and Share Price Performance
H1 2014 RESULTS PRESENTATION 9 NAV and Share Price Performance Cumulative Performance Since Performance 2011 2012 2013 Inception1 YTD1 NAV (0.47) 8.91 13.29 28.26 4.44 Ordinary Share Price (30.32) 38.30 61.34 66.15 6.86 Average Annual Discount 2011 2012 2013 YTD2 Current Discount3 55.67% 49.83% 41.3
Slide 11: Update on the New Investment Management Agreement (I)
H1 2014 RESULTS PRESENTATION 10 Update on the New Investment Management Agreement (I) Current Investment Management Agreement Fees • Base Fee: 0.479% • Consideration: Average quarterly market capitalization of the Fund Duration • Until 29 September 2014 New Investment Management Agreement Fees • Bas
Slide 12: Update on the New Investment Management Agreement (II)
H1 2014 RESULTS PRESENTATION 11 Update on the New Investment Management Agreement (II) New Investment Management Agreement Amendments requested by the FSA: • Force Majeure Event clauses (elimination of devaluations and fluctuations as force majeure events) • New Appointment Date definition • Clause
Slide 13: 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 14: Portfolio Structure – 31 July 2014
H1 2014 RESULTS PRESENTATION 13 Portfolio Structure – 31 July 2014 Net Cash & Net Cash & Receivables, 8% Receivables, Others, 2% IPOs since 8% Banks, 2% Electricity: the start of Generation, 17% FTIML's Infrastructure, 3% mandate, 15% Unlisted, Electricity & Gas: 42% Transport, Listed, 35% Distribut
Slide 15: Largest Holdings by NAV
H1 2014 RESULTS PRESENTATION 14 Largest Holdings by NAV Majority NAV % in NAV as at 31 July 2014 as at No. Portfolio Company Status Shareholder % Stake1 (EUR mn) 31 July 2014 1 OMV Petrom SA Listed OMV 19.0% 1,168.4 35.0 2 Hidroelectrica SA Insolvency Romanian State 19.9% 476.4 14.3 3 Romgaz SA List
Slide 16: IPO, SPO, and ABO Transactions
H1 2014 RESULTS PRESENTATION 15 IPO, SPO, and ABO Transactions Completed Transactions Offering Market Value Investment Company Transaction Seller Stake (EUR mn) Consortium Selected Comments Transelectrica SPO Romanian State 15.0% 37.61 BCR, Swiss Capital, Intercapital Invest Completed in March 2012
Slide 17: Discount on Accelerated Bookbuild Offerings
H1 2014 RESULTS PRESENTATION 16 Discount on Accelerated Bookbuild Offerings Reference Price Pre Placement Value ABO vs. Average Daily Pricing Announcements Placement Price Discount vs Placement Value Trading Value (30 Company Announcement (RON / share) (RON / share) Reference Price (RON mn) day pre-
Slide 18: Government SPO & IPO Calendar
H1 2014 RESULTS PRESENTATION 17 Government SPO & IPO Calendar Future IPOs and Privatizations Official Offering Offering Size Value FP Stake Value Investment Consortium Company Timeline1 FP Expectations Size % (EUR mn) (EUR mn) Seller Selected Delayed by the IPO – Hidroelectrica insolvency 15.0 412.1
Slide 19: Update on Hidroelectrica Insolvency
H1 2014 RESULTS PRESENTATION 18 Update on Hidroelectrica Insolvency Pre-tax profit (RON mn) • Starting 25th of February 2014 the company is run by Remus Borza as judicial administrator and Gabriel 481 510 401 Dumitrascu as special administrator 399 • Performance improvements continued in H1 2014: pr
Slide 20: Disposal of the Unlisted Power and Gas Distribution Companies
H1 2014 RESULTS PRESENTATION 19 Disposal of the Unlisted Power and Gas Distribution Companies Background • The total value of the holdings is EUR 773.5 mn, or 22.9% of the NAV per the Company FP Stake NAV EUR mn % NAV Fund’s 30 June 2014 Detailed Statement of Investments E.ON Moldova Distributie 22%
Slide 21: Corporate Governance Code and Listing of SOEs
H1 2014 RESULTS PRESENTATION 20 Legend ✓ Completed Corporate Governance Code and Listing of SOEs ? Appointment suspected to be politically influenced X Not completed Corporate Governance Code was Approved by GEO 109/2011 on 30 November 2011 Changes from Q1 2014 Independent Professional Company FP St
Slide 22: Top 20 Portfolio Holdings – Key Financial Ratios
H1 2014 RESULTS PRESENTATION 21 Top 20 Portfolio Holdings – Key Financial Ratios Top 20 Holdings1 % Stake¹ Net Debt/Equity P/BV EV/EBITDA P/E 1 OMV Petrom 18.99% 0.00 1.02 3.11 5.53 2 Hidroelectrica SA2 19.94% 0.08 0.63 5.92 14.69 3 Romgaz 10.00% (0.17) 1.44 5.42 13.43 4 ENEL Distributie Banat 24.12
Slide 23: Valuation Gap Between Romania and Other Countries
H1 2014 RESULTS PRESENTATION 22 Valuation Gap Between Romania and Other Countries Valuation Comparison: Romania vs. Countries in the Region 24.2 17.2 15.7 14.4 11.7 8.5 1.6 1.0 0.9 5.1 1.0 1.3 0.9 3.9 4.6 2.9 1.9 2.9 Price-to-Earnings Ratio Price-to-Book Ratio Dividend Yield Romania (BET) Turkey (BI
Slide 24: Corporate Actions
Corporate Actions This material is intended solely for the recipient and should not be reproduced, copied or re-transmitted. Not for public use.
Slide 25: Buy-Back Programs
H1 2014 RESULTS PRESENTATION 24 Buy-Back Programs No. of shares to be Average repurchased / share price Program Period Status Broker Cancellation of shares % of the Fund’s issued (RON / share capital share) Effective as of February First May–September 2011 Completed 240.3 mn / 1.74% 0.4994 Wood & Co
Slide 26: Secondary Listing on the LSE – Plan
H1 2014 RESULTS PRESENTATION 25 Secondary Listing on the LSE – Plan Fungible trading between London and Bucharest is planned to be achieved via the use of Depositary Interests (“DIs”) in the UK. In this regard, a UK-based registrar and depository would bridge the London and Bucharest markets by hold
Slide 27: Return of Capital – RON 0.05/Share Cash Distribution
H1 2014 RESULTS PRESENTATION 26 Return of Capital – RON 0.05/Share Cash Distribution Status • The payment of the total cash distribution of RON 601.3 mn started on 25 July 2014, and over 85% was paid in the first week • The shareholders registered in the Fund’s Shareholders’ Registry at 30 April 201
Slide 28: Dividend Income – Top 20 Portfolio Companies
H1 2014 RESULTS PRESENTATION 27 Dividend Income – Top 20 Portfolio Companies DIVIDEND PAYOUT % FP NET DIVIDEND (RON mn) Top 20 Holdings1 20132 2012 2011 2010 2014 2013 2012 2011 1 OMV Petrom SA 36 40 47 46 331.4 319.0 353.1 201.6 2 Hidroelectrica SA — — — — — — 52.5 3 Romgaz SA 99 85 91 109 148.5 15
Slide 29: Investor Relations – Upcoming Events
H1 2014 RESULTS PRESENTATION 28 Investor Relations – Upcoming Events 29-30 Sep Citi Frontier Markets 2014 Symposium London UniCredit Emerging Europe Conference General Shareholders Warsaw 23 Meeting 15-16 Sep 2014 Bucharest Sep 2014 More information about the Fund can be found on the website www.fon
Slide 30: General Shareholders Meeting on 23 September 2014
H1 2014 RESULTS PRESENTATION 29 General Shareholders Meeting on 23 September 2014 OGM Agenda • Approval of some amendments of the IMA signed between FTIML UK Bucharest Branch and Fondul Proprietatea SA on 25 February 2010, as imposed by FSA’s Decision no. 70/19 June 2014 • Approval of Addendum no.1
Slide 31: First Half 2014 Results
First Half 2014 Results This material is intended solely for the recipient and should not be reproduced, copied or re-transmitted. Not for public use.
Slide 32: Income Statement (RON million)
H1 2014 RESULTS PRESENTATION 31 Income Statement (RON million) 30 June 2013 (Unaudited) 30 June 2014 (Unaudited) Revenues from Current Activity, Out of Which: 874.8 1,452.6 Revenues from Financial Assets 604.8 649.8 Interest Income 20.7 8.4 Reversal of Impairment Adjustments & Provisions 1.0 30.0 Re
Slide 33: Balance Sheet (RON million)
H1 2014 RESULTS PRESENTATION 32 Balance Sheet (RON million) 31 December 2013 (Audited) 30 June 2014 (Unaudited) Intangible Assets 0.8 0.6 Financial Assets 10,490.6 10,157.0 Non-Current Assets – Total 10,491.4 10,157.6 Current Assets – Total 454.1 1,659.9 Prepaid Expenses - 0.2 Payables Within One Ye
Slide 34: Fondul Proprietatea – Franklin Templeton Investment Management
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.