S.C. Fondul Proprietatea SA · BVB:FP
S.C. Fondul Proprietatea SA — Fondul Proprietatea — H1 2017 Earnings Presentation
40 slides from S.C. Fondul Proprietatea SA's earnings presentation, Aug 14, 2017
Slide 1: H1 2017 Results Conference Call
H1 2017 Results Conference Call Fondul Proprietatea 14 August 2017 This material is intended solely for the recipient and should not be reproduced, copied or re-transmitted. Not for public use.
Slide 2: Disclaimer
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, legal or tax
Slide 3: 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 4: The Fund – Key Facts
The Fund – Key Facts Fund Details1 RON USD2 FP Adjusted Share Price4 and NAV NAV 10.72 bn 2.76 bn2 NAV/Share 1.2151 0.31262 1.2 Price/Share 0.8720 0.22432 Price/GDR 43.15 11.10 Market Capitalization as at 11 August 20173 7.66 bn 1.97 bn3 0.9 Discount/Share as at 11 August 2017 27.30% Discount/GDR as
Slide 5: Shareholders Structure
FONDUL PROPRIETATEA 4 Shareholders Structure Evolution (% Held)1 2% 2% 2% 3% 2% 3% Largest Shareholders2 100% 6% 8% 8% 8% 9% 9% Elliott Associates 9% 9% 10% 10% 9% 10% 13% 19.89% 13% 13% 14% 14% 9% 11% 12% 12% 14% 14% 15% 15% 15% City of London 5.04% 75% 10% Investment Mgmt. 43% 33% 34% 35% 34% 54%
Slide 6: NAV, Share Price and GDR Performance
NAV, Share Price and GDR Performance Cumulative Performance Since 2011 2012 2013 2014 2015 2016 Q2 2017 H1 2017 YTD1 Performance Inception1 NAV (RON) (0.47)% 8.91% 13.29% 1.39% (0.60)% 7.33% 4.16%% 9.24% 11.05% 47.52% Ordinary Share Price (30.32)% 38.30% 61.34% 14.53% (4.06)% 4.90% (1.17)% 16.68% 22
Slide 7: Attribution to NAV Performance for Q2 2017
Attribution to NAV Performance for Q2 2017 TOP PERFORMERS Change in share price or NAV Total effect for Company Status Weight in total NAV1 per share in Q2 2017 Q2 2017 Hidroelectrica SA Unlisted 32.0% 0.0% 1.93% BRD Groupe Societe Generale SA Listed 3.2% 9.4% 0.44% CN Aeroporturi Bucuresti SA Unlis
Slide 8: Attribution to NAV Performance for H1 2017
Attribution to NAV Performance for H1 2017 TOP PERFORMERS Change in share price or Total effect for Company Status Weight in total NAV1 NAV per share in H1 2017 H1 2017 OMV Petrom SA Listed 19.1% 8.6% 2.34% Hidroelectrica SA Unlisted 32.0% 0.0% 1.81% BRD Groupe Societe Generale SA Listed 3.2% 13.5%
Slide 9: Performance Objectives
Performance Objectives This material is intended solely for the recipient and should not be reproduced, copied or re-transmitted. Not for public use.
Slide 10: NAV Objective
NAV Objective • Objective – The Adjusted NAV per share as at 30 June 2017, to be higher than the NAV per share as at 30 June 2015 (RON 1.1851 per share) • Monthly Monitoring – 30 June 2017 – Adjusted NAV as at 30 June 2017 is higher than the NAV per share as at 30 June 2015 NAV Objective Amount RON
Slide 11: Attribution to NAV Performance June 2015 – June 2017
Attribution to NAV Performance for the period 30 June 2015 – 30 June 2017 TOP PERFORMERS Change in share Weight in Total Company Status price or NAV per Total effect NAV1 share Hidroelectrica SA Unlisted 32.0% 55.4% 12.23% CN Aeroporturi Bucuresti SA Unlisted 7.2% 129.0% 3.95% CN Administratia Portu
Slide 12: Attribution to NAV Performance June 2016 – June 2017
Attribution to NAV Performance for the period 30 June 2016 – 30 June 2017 TOP PERFORMERS Change in share Company Status Weight in Total NAV1 price or NAV per Total effect share Hidroelectrica SA Unlisted 32.0% 3.5% 2.72% OMV Petrom SA Listed 19.1% 18.1% 2.57% CN Aeroporturi Bucuresti SA Unlisted 7.2
Slide 13: Discount Objective
Discount Objective • Objective – The discount between closing price and last reported NAV per share to be equal to or lower than 15%, in at least 2/3 of the trading days in the period 1 July 2016 – 30 June 2017 • Monthly Monitoring – 30 June 2017 – In the period 1 July 2016 – 30 June 2017, discount
Slide 14: Portfolio
Portfolio This material is intended solely for the recipient and should not be reproduced, copied or re-transmitted. Not for public use
Slide 15: Portfolio Structure
FONDUL PROPRIETATEA 14 Portfolio Structure Listed vs Unlisted By Sector By Controlling Ownership as as at 31 July 2017 (% NAV)1 as at 31 July 2017 (% NAV)1 at 30 June 20172 3% 4% Electricity & Gas: 3% Distribution & Supply Unlisted Electricity: Generation 3% State 10% Controlled 26% 3% Oil & Gas Ent
Slide 16: Portfolio Structure – Listed vs. Unlisted
FONDUL PROPRIETATEA 15 Portfolio Structure – Listed vs. Unlisted Listed Companies Unlisted Companies (% of NAV as at 30 June 2017) (% of NAV as at 30 June 2017) 0.47% 0.51% OMV Petrom 1.71% 0.94% 1.17% 2.04% Hidroelectrica BRD GSG ENEL companies 1.66% 4.29% Electrica companies Nuclearelectrica 7.20%
Slide 17: Largest Holdings by NAV
Largest Holdings by NAV NAV Majority % in NAV 1 as at 31 July Portfolio Company Status % Stake as at 31 July Shareholder 2017 2017 (USD mn) Hidroelectrica SA Unlisted Romanian State 19.9% 870.53 31.57 OMV Petrom SA Listed OMV 12.6% 577.67 20.95 CN Aeroporturi Bucuresti Unlisted Romanian State 20.0%
Slide 18: Portfolio Holdings – Key Financials for H1 2017
Portfolio Holdings – Key Financials for H1 2017 EBITDA (mn RON) Net Profit (mn RON) H1 2016 H1 2017 H1 2016 H1 2017 Hidroelectrica SA 1,086.2 1,170.0 567.9 717.0 OMV Petrom 2,307.6 3,179.0 408.3 1,209.5 BRD Groupe Societe Generale SA - - 381.0 750.0 Nuclearelectrica SA 254.3 393.3 1.3 133.8 Alro SA
Slide 19: Hidroelectrica – Update (I)
FONDUL PROPRIETATEA 18 Hidroelectrica – Update (I) • Financials: Revenues increased by 6% in H1 2017 compared with the same period last year, to RON 1.7bn, Pre-tax cumulated profit (RON mn) while the net profit increased by 26% (RON 717 mn vs. 1,538 RON 568 mn). • Cash Level: RON 2.5bn at the end of
Slide 20: Hidroelectrica – Update (II)
APPENDIX I 19 Hidroelectrica – Update (II) Reservoir levels (%Full)1 100 80 60 40 20 12/11 4/12 8/12 12/12 4/13 7/13 11/13 3/14 7/14 11/14 3/15 7/15 11/15 3/16 7/16 11/16 3/17 7/17 Electricity prices (EUR/MWh)2 110 90 70 50 30 10 1/17 2/17 3/17 4/17 5/17 6/17 7/17 8/17 Romania Austria Hungary (OPCOM
Slide 21: C.N. Aeroporturi Bucuresti – Update
APPENDIX I 20 C.N. Aeroporturi Bucuresti – Update Financial Performance1 2011 2012 2013 2014 2015 2016 % y/y Operating revenues (mn RON) 501.5 555.5 582.6 672.1 755.6 882.3 17% Operating profit (mn RON) 88.5 80.9 94.0 124.4 213.5 276.6 30% Net Income (mn RON) 52.6 53.1 72.0 98.8 178.8 234.5 31% Numb
Slide 22: Electrica Transaction – Update
Electrica Transaction – Update 30 June 17 NAV 2016 FP Dividends Company % FP Stake % NAV RON mn RON mn SDEE Muntenia Nord2 22% 2.4% 255.2 19.3 SDEE Transilvania Sud2 22% 2.3% 246.2 21.7 SDEE Transilvania Nord2 22% 2.0% 208.3 22.1 Electrica Furnizare 22% 1.6% 167.7 34.8 Total Electrica 8.3% 877.4 97.
Slide 23: Enel – Update
Enel – Update 30 June 17 NAV 2016 Net Cash 2016 FP Dividends Company % FP Stake % NAV RON mn RON mn RON mn E-Distributie Banat (EDB) 24% 5.7% 599.9 1,270.6 8.9 E-Distributie Muntenia (EDM) 12% 4.3% 449.4 2,304.4 - E-Distributie Dobrogea (EDD) 24% 3.6% 380.2 593.7 6.6 Enel Energie (EE) 12% 0.7% 75.5
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: Distributions to Shareholders
CORPORATE ACTIONS 24 Distributions to Shareholders Annual Distributions to Shareholders (mn RON) 1,124.3 552.7 507.7 1,499.0 1,778.5 923.6 1,190.8 1,665.3 2000 18.3% 20.5% 20.00% 17.5% 15.5% 1500 583.1 15.00% 1,177.2 10.5% 1000 962.6 158.2 484.4 10.00% 8.1% 389.3 1,124.3 7.5% 189.5 500 120.0 924.0 5
Slide 26: 2017 Cash Distributions
FUND INFORMATION 25 2017 Cash Distributions Cash Distributions to Shareholders (RON) Cash Distribution Status Payment Date Ex-Date Per Share Special Distribution – Paid1 27 March 2017 6 March 2017 RON 0.05 Return of Capital Annual Distribution Paid2 30 June 2017 9 June 2017 RON 0.05 Total RON 0.10 1
Slide 27: Buy-Back Programs
Buy – Back Programs No. of shares to Average share be repurchased / Program Period Status price Broker Cancellation of shares % of the Fund’s (RON/share) issued share capital Partial cancellation approved by 29 Sep 16 – Wood & Co., Seventh Finalized 830.2 mn/ 8.2% 0.8967 shareholders during the 3 Ma
Slide 28: Dividend Income – Top 20 Portfolio Companies (I)
Dividend Income – Top 20 Portfolio Companies (I) DIVIDEND PAYOUT (%) FP NET DIVIDEND (RON mn) Top 20 Holdings1 2011 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2017 Hidroelectrica SA - - - 80 80 90 - - - 128.9 134.6 206.6 OMV Petrom SA 47 40 36 35 - 94 353.1 319.0 331.4 120.5 - 106.8 CN Aeropo
Slide 29: Dividend Income – Top 20 Portfolio Companies (II)
Dividend Income – Top 20 Portfolio Companies (II) DIVIDEND PAYOUT (%) FP NET DIVIDEND (RON mn) Top 20 Holdings1 2011 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2017 Enel Energie SA - - - 50 50 - - - - 7.4 2.1 - Enel Energie Muntenia SA - - - - - - - - - - - - Conpet SA 90 85 85 100 100 92 6.6
Slide 30: Investor Relations – Upcoming Events
CORPORATE ACTIONS 29 Investor Relations – Upcoming Events Fondul Proprietatea GSM Bucharest 26 Sep FP Analyst and Investor Days Bucharest Citi Annual Frontier Markets Conference London 6-8 25 Sep Sep More information about the Fund can be found on the website www.fondulproprietatea.ro This material
Slide 31: 2017 FP Analyst and Investor Days – Agenda (I)
2017 FP Analyst and Investor Days – Proposed Agenda (I) Wednesday, 6 September 12:00 – 1:00 p.m. Lunch, JW Marriott Hotel 1:15 p.m Pick-up from JW Marriott Hotel and departure to Otopeni Airport 2:30 – 4:30 pm Otopeni Airport Site Visit 4:30 p.m. Departure to Baneasa Airport 5:00 – 5:30 p.m. Baseasa
Slide 32: 2017 FP Analyst and Investor Days – Agenda (II)
2017 FP Analyst and Investor Days – Proposed Agenda (II) Thursday, 7 September – JW Marriott Hotel, Salon CD 7:15 – 8:55 a.m. Registration and Breakfast Welcome 8:55 – 9:00 a.m. Mr. Grzegorz Konieczny, Co-CEO Fondul Proprietatea Mr. Johan Meyer, Co-CEO Fondul Proprietatea Embassy of the United State
Slide 33: 2017 FP Analyst and Investor Days – Agenda (III)
2017 FP Analyst and Investor Days – Proposed Agenda (III) Thursday, 7 September – JW Marriott Hotel, Salon CD Panel 2: Energy Fondul Proprietatea: Grzegorz Konieczny, Fund Manager – Moderator Ministry of Energy: Toma Petcu, Minister (TBC) Government of Romania: Cosmin Ghita, Counselor to the Prime M
Slide 34: 2017 FP Analyst and Investor Days – Agenda (IV)
2017 FP Analyst and Investor Days – Proposed Agenda (IV) Friday, 8 September – JW Marriott Hotel, Salon CD 8:00 – 9:00 a.m. Registration and Breakfast 9:00 a.m. – 4:30 p.m. 1on1 and Group meetings (Frontier Days with WOOD & Company) 1:00 – 2:00 p.m. Lunch 6:00 p.m. Dinner, TBC This material is inten
Slide 35: 2017 FP Analyst and Investor Days – Romanian Companies
2017 FP Analyst and Investor Days – Romanian Companies Alro Nuclearelectrica Banca Transilvania OMV Petrom BRD Groupe Societe Generale Posta Romana Bucharest Airports Romgaz Bucharest Stock Exchange Salrom Conpet SIF 3 Transilvania Constanta Port Transelectrica Electrica Transgaz Fondul Proprietatea
Slide 36: 26 September GSM Agenda – Main Points
FUND INFORMATION 35 26 September GSM Agenda – Main Points • The approval of the decrease of the subscribed share capital of Fondul Proprietatea S.A. from RON 4,854,034,784.56 to RON 4,771,610,196.08 pursuant to the cancellation of 158,508,824 own shares acquired by Fondul Proprietatea S.A. during th
Slide 37: H1 2017 Results
H1 2017 Results This material is intended solely for the recipient and should not be reproduced, copied or re-transmitted. Not for public use.
Slide 38: Statement of Financial Position
Statement of Financial Position 30 June 2017 31 December 2016 RON mn Unaudited Audited Cash and current accounts 58.4 5.8 Deposits with banks 84.9 305.3 Treasury bills 70.0 781.4 Government bonds - 328.6 Dividends receivable 353.1 - Equity investments 9,381.1 9,992.2 Non-current assets held for sale
Slide 39: Statement of Comprehensive Income
Statement of Comprehensive Income 30 June 2017 30 June 2016 RON mn Unaudited Unaudited Gross dividends 539.9 346.9 Net unrealized gain / (loss) from equity investments at fair value through profit 159.0 (541.3) or loss Reversal of impairment losses on receivables, net 36.7 17.9 Net gain on disposal
Slide 40: Fondul Proprietatea contact details
Fondul Proprietatea Premium Point Buzesti Street 78-80, 1st District Bucharest 011017 www.fondulproprietatea.ro This material is intended solely for the recipient and should not be reproduced, copied or re-transmitted. Not for public use.