S.C. Fondul Proprietatea SA · BVB:FP
S.C. Fondul Proprietatea SA — Fondul Proprietatea — H1 2015 Earnings Presentation
41 slides from S.C. Fondul Proprietatea SA's earnings presentation, Aug 13, 2015
Slide 1: Fondul Proprietatea H1 2015 Results Conference Call
Fondul Proprietatea H1 2015 Results Conference Call – 13 August 2015 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 Details as at RON EUR FP Share Price4 and NAV 31 July 20151 NAV 12.83 bn 2.91 bn2 NAV/Share 1.2105 0.27472 1.2 Price/Share3 0.8150 0.1849 Discount per Share3 32.67% Price/GDR3 (USD) 10.20 0.9 Discount/GDR3 32.32% Number of Shares in Issue 12,184,278,667 Number of Paid Share
Slide 5: NAV, Share Price and GDR Performance
NAV, Share Price and GDR Performance Cumulative Performance (RON) Since Performance 2011 2012 2013 2014 Q1 2015 H1 2015 YTD1 Inception2 NAV (0.47)% 8.91% 13.29% 1.39% (3.46)% 1.87% 4.05% 26.85% Ordinary Share (30.32)% 38.30% 61.34% 14.53% (3.63)% (5.83)% (3.46)% 67.69% Price GDR N/A N/A N/A N/A N/A
Slide 6: Contributors to NAV Performance for Q2 2015
Contributors to NAV Performance for Q2 2015 TOP PERFORMERS % in Total % change in NAV performance Change in NAV Company Status NAV1 for Q2 2015 per share (RON) OMV Petrom SA Listed 32.1% 1.16% 0.0137 Romgaz SA Listed 11.1% 0.41% 0.0049 BRD Groupe Societe Generale SA Listed 2.2% 0.31% 0.0036 Alro SA
Slide 7: Contributors to NAV Performance for H1 2015
Contributors to NAV Performance for H1 2015 TOP PERFORMERS % in Total % change in NAV performance Change in NAV Company Status NAV1 for H1 2015 per share (RON) BRD Groupe Societe Generale SA Listed 2.2% 0.39% 0.0048 Romgaz SA Listed 11.1% 0.30% 0.0038 Banca Transilvania SA Listed 1.3% 0.13% 0.0016 C
Slide 8: 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 9: Performance Objectives – NAV
Performance Objectives – NAV • Objective – The Adjusted NAV1 per share as at 30 June 2015, to be higher than the NAV per share as at 30 September 2013 (RON 1.1610 / share) • Monthly Monitoring – 30 June 2015 – Adjusted NAV as at 30 June 2015 is higher than the NAV per share as at 30 September 2013 N
Slide 10: Contributors to Change in NAV September 2013 – 30 June 2015
Contributors to Change in the NAV for the period 30 September 2013 – 30 June 2015 TOP PERFORMERS % in Total % change in NAV Change in NAV per Company Status NAV2 performance share (RON)1 Romgaz SA4 Listed 11.1% 4.75% 0.0664 Hidroelectrica SA Unlisted 17.2% 1.19% 0.0166 ENEL Distributie Banat SA Unli
Slide 11: Discount Objective
Discount Objective • Objective – The discount between the closing price and the 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 October 2014 – 30 June 2015 • Monthly Monitoring – 30 June 2015 – In the period 1 October 2014 – 30 June 2
Slide 12: Summary of Key Challenges
Summary of Key Challenges • FSA not approving the DI regulation required to complete the Fund’s listing in London in December 2014 • Significant work undertaken to list the Fund on the London Sock Exchange via GDRs • Delays in the implementation of the Corporate Governance Legislation (OUG 109/2011)
Slide 13: Oil Prices
FUND INFORMATION 12 Oil Prices 115 100 85 70 55 40 10/13 12/13 2/14 4/14 6/14 8/14 10/14 12/14 2/15 4/15 6/15 WTI Crude Oil Brent Crude Oil Source: Bloomberg, for the period 1 October 2013 – 30 June 2015. This material is intended solely for the recipient and should not be reproduced, copied or re-t
Slide 14: Electricity Prices
APPENDIX IV 13 Electricity Prices Electricity prices (EUR/MWh) 50 40 30 20 9/13 10/13 11/13 12/13 1/14 2/14 3/14 4/14 5/14 6/14 7/14 8/14 9/14 10/14 11/14 12/14 1/15 2/15 3/15 4/15 5/15 6/15 Romania Hungary Germany (OPCOM) (HUPX) (EPEX) Source: Hidroelectrica, Bloomberg. Note: Base load prices. This
Slide 15: Electricity Market
PORTFOLIO PERFORMANCE 14 Electricity Market Consumption (average hourly values) 7,055 7,066 7,136 7,073 7,156 7,317 7,348 6,882 6,669 6,397 6,463 6,509 6,324 6,151 6,058 5,844 6,022 5,898 5,995 5,864 5,773 10/13 11/13 12/13 1/14 2/14 3/14 4/14 5/14 6/14 7/14 8/14 9/14 10/14 11/14 12/14 1/15 2/15 3/1
Slide 16: Gas Prices
APPENDIX IV 15 Gas Prices Gas prices (EUR/cm) 380 310 240 170 100 10/13 1/14 4/14 7/14 10/14 Russian gas price German border Romanian producers' price for industrial consumers Romanian import price Source: Wood & Co, Bloomberg for the period 1 October 2013 – 30 June 2015. This material is intended s
Slide 17: Greece – Athens Stock Exchange Composite
FUND INFORMATION 16 Greece – Athens Stock Exchange Composite 1,240.0 1,080.0 920.0 760.0 600.0 10/13 12/13 2/14 4/14 6/14 8/14 10/14 12/14 2/15 4/15 6/15 8/15 ASE Index Source: Bloomberg, for the period 1 October 2013 – 12 August 2015. This material is intended solely for the recipient and should no
Slide 18: Romania vs. MSCI Eastern Europe vs. Frontier Markets vs. World: YTD Performance
FUND INFORMATION 17 Romania vs. MSCI Eastern Europe vs. Frontier Markets vs. World: YTD Performance 01-OCT-2013-30-JUN-2015 (INDEX) Romania BET (Bucharest Exchange Trading) - Price Index 130 (INDEX) MSCI AC World - Price with Gross Dividends - Daily Official - USD (Index) 130 (INDEX) MSCI EM Eastern
Slide 19: Portfolio
Portfolio This material is intended solely for the recipient and should not be reproduced, copied or re-transmitted. Not for public use.
Slide 20: Portfolio Structure
FONDUL PROPRIETATEA 19 Portfolio Structure Listed vs Unlisted By Sector By Controlling Ownership as as at 31 July 2015 as at 31 July 2015 at 30 June 2015 Electricity: Generation 0% Unlisted 3% 4% 0% Oil & Gas 4% -1% 12% 19% Electricity & Gas: State Listed Distribution & Supply Controlled Infrastruct
Slide 21: Largest Holdings by NAV
Largest Holdings by NAV NAV Majority % in NAV 1 as at 31 July Portfolio Company Status % Stake as at Shareholder 2015 31 July 2015 (EUR mn) OMV Petrom SA Listed OMV 19.0% 956.98 32.86 Hidroelectrica SA Insolvency Romanian State 19.9% 494.24 16.97 Romgaz SA Listed Romanian State 10.0% 300.42 10.32 EN
Slide 22: Update on the Unlisted Power and Gas Distribution Companies
Update on the Unlisted Power and Gas Distribution Companies Background Company FP Stake NAV EUR mn % NAV • The total value of the holdings is EUR 788.7 mn, or 28.0% of the NAV per the Fund’s 30 June 2015 Detailed Statement of Investments. Enel Distributie Banat (EDB) 24% 143.2 5.1% Status Enel Distr
Slide 23: Top Listed Portfolio Holdings – Key Financials
Top Listed Portfolio Holdings – Key Financials EBITDA (mn RON) Net Profit (mn RON) H1 2015 H1 2014 H1 2015 H1 2014 OMV Petrom SA 3,128.00 4,245.00 1,041.36 1,386.54 BRD Groupe Societe Generale SA1 - - 270.14 127.89 Banca Transilvania SA1 - - 2,278.97 186.71 Conpet SA Ploiesti 62.55 56.67 35.08 30.94
Slide 24: Update on Hidroelectrica
FONDUL PROPRIETATEA 23 Update on Hidroelectrica Pre-tax cumulated profit (RON mn) 725 • Pending litigations following the insolvency 636 procedure 507 510 • Electricity generated in H1 2015: 10.20 TWh, 481 vs. 8.76 TWh in H1 2014 402 401 399 • Electricity generated in July 2015: 1.1 TWh, 262 274 vs.
Slide 25: Portfolio Update
Portfolio Update On 29 April 2015, and also during the Government meeting on 3 June 2015, the Romanian Government reaffirmed its plans to continue in 2015 and 2016 the IPO and SPO program of SOEs: • Majority State-owned companies and non-privatized (ex. Hidroelectrica, Constanta Port, Bucharest Airp
Slide 26: 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 27: LSE Listing – Top Largest Funds by NAV
LSE Listing – Top 10 Largest Funds by NAV Premium / % Listed 30 Days Avg. Listing Total NAV 12 Mo Yield Fund Symbol Discount Portfolio turnover Currency (USD mn) (%) to NAV (%) (approximately) (USD mn) Scottish Mortgage Inv Tr Plc SMT GBP 5,119.47 6.30% 97.0 7.1 1.20% Alliance Trust Plc ATST GBP 4,8
Slide 28: Update on the GDR Facility
FONDUL PROPRIETATEA 27 Update on the GDR Facility Evolution (% Held) Largest Shareholders 2% 2% 2% 2% 2% 2% 2% 3% 2% 100% 4% Elliott 6% 9% 8% 10% 8% 10% 10% 9% 10% 10% 18.76% 9% 9% 10% 10% 9% 9% 10% 9% 8% 10% Associates1 14% 9% 9% 9% 11% 12% 12% 12% 20% Total Number of 27% 8,627 75% 10% Shareholders
Slide 29: Buy-Back Programs
Buy-Back Programs No. of shares to Total value be repurchased / Average of the buy- Cancellation of Program Period Status % of the Fund’s share price back Broker shares issued share (RON/share) program capital (RON mn)3 October 2014 Approved by Fourth – February Completed 991.0 mn/7.32% 1.05571 1,04
Slide 30: Dividend Income – Top 20 Portfolio Companies
Dividend Income – Top 20 Portfolio Companies DIVIDEND PAYOUT (%) FP NET DIVIDEND (RON mn) Top 20 Holdings1 2010 2011 2012 2013 2014 2011 2012 2013 2014 2015 OMV Petrom SA 46 47 40 36 35 201.6 353.1 319.0 331.4 120.5 Hidroelectrica SA 90 - - - 80 52.5 - - - 128.9 Romgaz SA 109 91 85 99 86 106.0 140.6
Slide 31: Dividend Income – Top 20 Portfolio Companies
Dividend Income – Top 20 Portfolio Companies DIVIDEND PAYOUT (%) FP NET DIVIDEND (RON mn) Top 20 Holdings1 2010 2011 2012 2013 2014 2011 2012 2013 2014 2015 E.ON Energie Romania SA - - - - - - - - - - CN Administratia Porturilor Maritime SA - 71 75 78 50 - 6.6 5.4 10.1 6.5 Electrica Furnizare SA - -
Slide 32: Investor Relations – Upcoming Events
CORPORATE ACTIONS 31 Investor Relations – Upcoming Events Fondul Proprietatea Analyst and Investor Days Bucharest Citi Annual Frontier Market 27-29 Symposium Oct London 29-30 Sep UniCredit Keppler Emerging Europe Conference Warsaw UBS Frontier Conference and London Road-show London 14 17-18 Sep Sep
Slide 33: 2015 FP Analyst and Investor Days – Welcome Reception / Site Visits
2015 FP Analyst and Investor Days – Welcome Reception / Site Visits Bucharest Monday, 26 October 2015 5:30 p.m. Tour of the Cotroceni National Museum 8:00 p.m. Welcome reception, JW Marriott Hotel, Champions Restaurant Bucharest / Olt County Tuesday, 27 October 2015 9:00 a.m. Pick-up from Marriott H
Slide 34: 2015 FP Analyst and Investor Days – Presentations (I)
2015 FP Analyst and Investor Days – Presentations (I) – Tentative Agenda (TBC) Bucharest Wednesdays , 28 October 2015 – Marriott Hotel, BCD Room 8:30 – 9:00 a.m. Registration and Breakfast 9:00 – 9:10 a.m. Welcome – Grzegorz Konieczny (CEO and Fund Manager of Fondul Proprietatea) Keynote Speaker – P
Slide 35: 2015 FP Analyst and Investor Days – Presentations (II)
2015 FP Analyst and Investor Days – Presentations (II) – Tentative Agenda (TBC) Bucharest Wednesdays , 28 October 2015 – Marriott Hotel, BCD Room Financial Supervisory Authority 11:50 a.m. – 12:15 p.m. Mr. Misu Negritoiu, President (TBC) Regulatory Authority for Energy 12:15 – 12:40 p.m. Mr. Niculae
Slide 36: 2015 FP Analyst and Investor Days – Presentations (III)
2015 FP Analyst and Investor Days – Presentations (III) – Tentative Agenda (TBC) Bucharest Wednesdays , 28 October 2015 – Marriott Hotel, BCD Room Hidroelectrica – Presentation and Q&A 4:00 – 4:30 p.m. Mr. Remus Borza, EURO INSOL SPRL (Judicial Administrator) (TBC) BRD – Presentation and Q&A 4:30 –
Slide 37: 2015 FP Analyst and Investor Days – One-on-One Meetings
2015 FP Analyst and Investor Days – One-on-One Meetings (Frontier Day with Wood & Co.) Bucharest Thursday, 29 October 2015 – Marriott Hotel, D Room 8:30 – 9:00 a.m. Registration and Breakfast 9:00 a.m. – 5:00 p.m. One-on-one meetings 1:00 – 2:00 p.m. Lunch 7:00 p.m. Dinner Companies Alro Fondul Prop
Slide 38: H1 2015 Results
H1 2015 Results This material is intended solely for the recipient and should not be reproduced, copied or re-transmitted. Not for public use.
Slide 39: Balance Sheet
Balance Sheet 30 June 2015 31 December 2014 Ron mn Unaudited Audited Intangible assets 0.8 0.8 Financial assets 8,798.4 9,075.2 Non-current assets - total 8,799.2 9,076.0 Current assets - total 438.6 319.5 Prepaid expenses 0.2 - Payables within one year 544.5 41.4 Total assets less current liabiliti
Slide 40: Income Statement
Income Statement 30 June 2015 30 June 2014 Unaudited Unaudited Revenues from current activity, out of which: 438.6 1,452.6 Revenues from financial assets 433.2 649.8 Interest income 1.5 8.4 Reversal of impairment adjustments and provisions 0.2 30.0 Revenues from disposal of financial assets 1.9 762.
Slide 41: 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.