S.C. Fondul Proprietatea SA · BVB:FP
S.C. Fondul Proprietatea SA — Fondul Proprietatea — Q3 2018 Earnings Presentation
30 slides from S.C. Fondul Proprietatea SA's earnings presentation, Nov 15, 2018
Slide 1: Q3 2018 Results Conference Call
Fondul Proprietatea – 15 November 2018 Q3 2018 Results Conference Call 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 USD FP Share Price6 and NAV (RON) NAV 10.00 bn 2.43 bn2 NAV/Share 1.3747 0.33412 Price/Share 0.9410 0.22872 1.3 Price/GDR 47.31 11.50 Market Capitalization as at 14 November 20183 6.87 bn 1.66 bn3 0.9 Discount/Share as at 14 November 2018 30.24% Discount/GDR as
Slide 5: Shareholders structure
Shareholders structure Evolution (% Held) 2% 2% 2% 3% 2% 3% 3% 6% 10% 10% 9% 10% 8% 8% 8% 9% 10% 9% 9% 13% 13% 13% 17% 18% 17% 17% 14% 19% 14% 9% 11% 12% 12% 14% 14% 15% 15% 16% 10% 16% 16% 17% 18% 43% 33% 34% 35% 34% 54% 27% 35% 35% 35% 35% 37% 31% 34% 55% 53% 53% 31% 31% 30% 30% 10% 25% 23% 25% 25
Slide 6: NAV, Share price and GDR performance
NAV, Share price and GDR performance Cumulative Performance Since Performance 2011 2012 2013 2014 2015 2016 2017 9mo 2018 YTD1 Inception1 NAV (RON) (0.47)% 8.91% 13.29% 1.39% (0.60)% 7.33% 13.10% 15.27% 16.98% 75.75% Ordinary Share Price (RON) (30.32)% 38.30% 61.34% 14.53% (4.06)% 4.90% 21.46% 15.87
Slide 7: Attribution to NAV Performance for Q3 2018
Attribution to NAV Performance for Q3 2018 Top Performers Change in NAV performance % Change in share price/ NAV Company Status Weight in total NAV1 for Q3 2018 value per share in Q3 2018 OMV Petrom SA Listed 20.7% 2.43% 13.1% Societatea Nationala a Sarii SA Unlisted 2.6% 0.43% 0.0% BRD Groupe Socie
Slide 8: Attribution to NAV Performance for 9 months 2018
Attribution to NAV Performance for 9 months 2018 Top Performers Weight in total Change in NAV performance % Change in share price/ NAV Company Status NAV1 for 9 months 2018 value per share in 9 months 2018 OMV Petrom SA Listed 20.7% 5.83% 26.7% Hidroelectrica SA Unlisted 35.7% 2.06% (1.0)% CN Aeropo
Slide 9: Portfolio
Portfolio This material is intended solely for the recipient and should not be reproduced, copied or re-transmitted. Not for public use
Slide 10: Portfolio structure
Portfolio structure Listed vs Unlisted By Sector By Controlling Ownership as at 31 October 2018 (% NAV)1 as at 31 October 2018 (% NAV)1 as at 28 September 20182 Power Utilities: Generation……....37% Oil & Gas.……….22% State Unlisted….…68% Power & Gas Utilities: Controlled Distribution & Entities………52%
Slide 11: Portfolio structure – Listed vs. Unlisted
Portfolio structure – Listed vs. Unlisted Listed Companies Unlisted Companies (% of NAV as at 28 September 2018) (% of NAV as at 28 September 2018) Hidroelectrica..………...35.68% OMV Petrom………….20.75% ENEL Companies….…..14.39% BRD GSG ………………2.29% Bucharest Airport……….7.99% Alro……….……...………2.22% 27.31%
Slide 12: Largest holdings by NAV
Largest holdings by NAV NAV as at % in NAV Majority 31 October 2018 as at Portfolio Company Status Shareholder % Stake1 (USD mn) 31 October 2018 Hidroelectrica SA Unlisted Romanian State 19.9% 858.27 35.29 OMV Petrom SA Listed OMV 9.9% 536.19 22.05 CN Aeroporturi Bucuresti SA Unlisted Romanian State
Slide 13: Portfolio – Potential transactions
Portfolio – Potential transactions FP NAV FP Stake Value Company (%)1 (USD mn)1 Financial Adviser Selected Status Hidroelectrica 35.3% 858.3 Citigroup Global Markets Ltd, UBS Ltd Ongoing Salrom 2.6% 62.7 UniCredit Ongoing Request for IPO submitted for shareholders’ Engie Romania 4.7% 114.7 - approva
Slide 14: Top portfolio holdings – 9months 2018
Top portfolio holdings – 9months 2018 financials EBITDA (RON mn) Net profit (RON mn) Company 9mo 2017 9mo 2018 9mo 2017 9mo 2018 Hidroelectrica SA 1,687.3 2,409.9 1,014.0 1,675.8 OMV Petrom SA 4,886.4 5,817.5 1,847.7 2,667.2 CN Aeroporturi Bucuresti SA 395.5 469.2 270.8 334.7 SN a Sarii Salrom SA 89
Slide 15: Hidroelectrica – Update
Hidroelectrica – Update Pre-tax Cumulated Profit (RON mn) Dividends: 1,980 FP received RON 226 mn dividends for the 2017 financial year. Financials: 1,602 Gross profit for the 9months increased by 66% to RON 1.98 billion. 1,538 Revenues increased to RON 3.2 billion, similar to the revenues registere
Slide 16: OMV Petrom – Update
OMV Petrom – Update 9months 2018 results1 OMV Petrom – Share Price Performance % in USD • Sales increased to RON 16.1 bn in the first nine months of the year, by over 11% compared to the similar period in 2017, on the back of FP Announcement of the SPO FP higher oil and gas prices and higher electri
Slide 17: C.N. Aeroporturi Bucuresti – Update
C.N. Aeroporturi Bucuresti – Update 9mo 9mo 2018 Financial Performance 2011 2012 2013 2014 2015 2016 2017 2017 2018 %yoy budget Operating revenues (mn RON) 501.5 555.5 582.6 672.1 755.6 882.3 1,052.8 788.3 746.4 (5.3)% 1,189.2 Operating profit (mn RON) 88.5 80.9 94.0 124.4 213.5 276.6 393.4 314.9 39
Slide 18: Enel companies – Update (I)
Enel companies – Update (I) 2014 – 2018 2019 – 2023 (3rd Regulatory Period) (4th Regulatory Period) Regulated rate of return • 5.66% for current regulated asset base • 7.70% • 6.66% for new investments (not yet approved by ANRE) Regulated Asset Base (RAB) Initial RAB at the privatization Initial RAB
Slide 19: Enel companies – Update (II)
Enel companies – Update (II) 2014 – 2018 2019 – 2023 (3rd Regulatory Period) (4th Regulatory Period) Technological losses (non-controllable costs) • Set by ANRE • Set by ANRE based on the current grid losses for each distributor (different targets if the losses are currently > 15%, between 14-15%, b
Slide 20: 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 21: Distributions to shareholders
Distributions to shareholders Annual Distributions to Shareholders (RON mn) 1,124.3 552.7 507.7 1,499.0 1,778.5 923.6 1,190.8 1,743.7 1,852.7 2000 25.2% 18.3% 21.9% 17.5% 1500 15.5% 583.1 1,121.5 832.5 10.5% 1000 600.0 236.6 484.4 7.5% 362.6 344.7 8.1% 1,124.3 389.3 189.5 231.2 500 120.0 924.0 507.7
Slide 22: Buy-back programs
Buy-back programs No. of shares to be repurchased/ Average % of the Fund’s share price Cancellation Program Period Status issued share capital (RON/share) Broker of shares1 Cancellation approved by the 29 Sep 16 – Wood & Co., Seventh Finalized 830.2 mn/8.2% 0.8967 shareholders during the 3 May ‘172
Slide 23: Annual dividend income – Top 20 portfolio companies (I)
Annual dividend income – Top 20 portfolio companies (I) Dividend Payout (%) FP Net Dividend (RON mn) Top 20 Holdings1 2012 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2018 Hidroelectrica SA - - 80 80 90 90 - - 128.9 134.6 206.6 226.2 OMV Petrom SA 40 36 35 - 94 46 319.0 331.4 120.5 - 106.8 107
Slide 24: Dividend income – Top 20 portfolio companies (II)
Dividend income – Top 20 portfolio companies (II) Dividend Payout (%) FP Net Dividend (RON mn) Top 20 Holdings1 2012 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2018 Posta Romana SA -9 -9 - -9 - - -9 -9 - -9 - - CN Administratia Canalelor Navigabile SA 85 85 50 100 90 25 0.9 0.2 0.2 0.6 0.3 0.
Slide 25: 2018 Special dividends from SOEs
2018 Special dividends from SOEs Portfolio company Gross dividend (RON mn) Nuclearelectrica SA 238.01 To be approved by shareholders on 7 December 2018 based Bucharest Airports SA on prior recommendation from the Board2 Total 238.0 1. Based on the company’s GSM calling notice. To be approved by shar
Slide 26: Investor relations – Upcoming events
Investor relations – Upcoming events Romania Investor Days London 27-28 Feb ‘19 4-7 WOOD’s Winter Conference Dec ‘18 Prague 27-29 UBS Global Emerging Nov ‘18 Markets Conference New York More information about the Fund can be found on the website www.fondulproprietatea.ro This material is intended so
Slide 27: Financial Results
Financial Results This material is intended solely for the recipient and should not be reproduced, copied or re-transmitted. Not for public use
Slide 28: Statement of Financial Position
Statement of Financial Position 30 September 2018 31 December 2017 RON mn Unaudited Audited Cash and current accounts 23.3 19.2 Deposits with banks 213.3 1,276.7 Treasury bills - 46.3 Government bonds 147.3 195.9 Dividends receivable 12.0 - Equity investments 9,533.5 9,278.2 Other assets 4.5 10.7 To
Slide 29: Statement of Comprehensive Income
Statement of Comprehensive Income 9-month period 9-month period Q3 2018 Q3 2017 ended 30 Sept ended 30 Sept RON mn Unaudited Unaudited 2018 2017 Unaudited Unaudited Gross dividend income 42.4 184.4 575.0 724.3 Net gain / (loss) from equity investments at fair value through profit or loss 132.0 26.2
Slide 30: 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.