S.C. Fondul Proprietatea SA · BVB:FP

S.C. Fondul Proprietatea SA — Fondul Proprietatea — Shareholder Meeting (November 2014)

34 slides from S.C. Fondul Proprietatea SA's shareholder meeting presentation, Nov 19, 2014

  1. Slide 1: Fondul Proprietatea

    Fondul Proprietatea General Shareholder Meeting, 19 November 2014 This material This materialisisintended intendedsolely solely forfor thethe recipient recipient and and should should not benot reproduced, be reproduced, copiedcopied or re-transmitted. or re-transmitted. Not intended Not for for pub

  2. Slide 2: Disclaimer

    GENERAL MEETING OF SHAREHOLDERS – 19 NOVEMBER 2014 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 inte

  3. 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.

  4. Slide 4: The Fund – Key Facts

    GENERAL MEETING OF SHAREHOLDERS – 19 NOVEMBER 2014 3 The Fund – Key Facts Fund Details as at 31 October 20141 RON EUR NAV 14.22 bn 3.22 bn2 NAV/Share 1.2068 0.27342 Price/Share3 0.9400 0.2130 Discount3 22.11% 22.11% Number of Shares in Issue 12,437,136,723 Number of Paid Shares4 12,073,324,373 Numbe

  5. Slide 5: The Fund Manager – Bucharest Branch and Summary of the Management Contract

    GENERAL MEETING OF SHAREHOLDERS – 19 NOVEMBER 2014 4 The Fund Manager – Bucharest Branch and Summary of the Management Contract Franklin Templeton Investment Management Ltd. U.K. DR. MARK MOBIUS Bucharest Branch, Acting as Sole Director and Fund Manager Chief Investment Officer, Fees Emerging Market

  6. Slide 6: Fund Management Strategy

    GENERAL MEETING OF SHAREHOLDERS – 19 NOVEMBER 2014 5 Fund Management Strategy Investment Strategy: Portfolio Objectives: Performance Objectives (IPS): • Active management and • Long-term objective is to • Discount of 15% or less for at least engagement with current increase the Fund’s two thirds of

  7. Slide 7: Shareholders Structure

    GENERAL MEETING OF SHAREHOLDERS – 19 NOVEMBER 2014 6 Shareholders Structure1 Evolution (% Held) Largest Shareholders2 100% 2% 2% 6% 2% 2% 2% 2% 2% 2% 2% 3% 4% Elliott Associates3 19.73% 9% 8% 10% 8% 10% 9% 9% 10% 10% 9% 9% 10% 9% 8% 10% 11% 14% 9% 9% 9% 20% 27% Total Number of 75% 10% 8,216 37% Shar

  8. Slide 8: Net Asset Value

    GENERAL MEETING OF SHAREHOLDERS – 19 NOVEMBER 2014 7 Net Asset Value NAV (RON)/Share 1.5000 1.3500 1.2000 1.0500 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 9/14 NAV Distribution Adjusted NAV • From June to November 20

  9. Slide 9: FP Market Valuation/Performance

    GENERAL MEETING OF SHAREHOLDERS – 19 NOVEMBER 2014 8 FP Market Valuation/Performance NAV vs. Market Capitalization (EUR bn)1 3.22 Unlisted 1.41 Net Cash and 0.26 Receivables 2.51 1.55 Listed NAV Market Capitalization2 31 October 2014 14 November 2014 1. Source: BVB, FP NAV as at 31 October 2014. 2.

  10. Slide 10: Performance

    GENERAL MEETING OF SHAREHOLDERS – 19 NOVEMBER 2014 9 Performance FP Share Price1 (RON), NAV and Discount (%) 1.3000 65% 1.0500 53% 0.8000 40% 0.5500 28% 0.3000 15% 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 9/14 Discount Share Pri

  11. Slide 11: Annual Total Net Asset Value and Distributions to Shareholders

    GENERAL MEETING OF SHAREHOLDERS – 19 NOVEMBER 2014 10 Annual Total Net Asset Value and Distributions to Shareholders RON mn 1,499.0 507.7 840.9 552.7 15,328.2 14,465.4 14,979.2 15,013.7 14,222.2 Dec-10 Dec-11 Dec-12 Dec-13 Oct-14 Annual distributions Total NAV Source: Reports prepared by the Fund Ma

  12. Slide 12: NAV and Share Price Performance

    GENERAL MEETING OF SHAREHOLDERS – 19 NOVEMBER 2014 11 NAV and Share Price Performance Cumulative Performance Since Performance 2011 2012 2013 YTD1 Inception1 NAV -0.47% 8.91% 13.29% 27.93% 0.92% Ordinary Share Price -30.32% 38.30% 61.34% 86.82% 20.16% Average Annual Discount 2011 2012 2013 YTD2 Curr

  13. 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.

  14. Slide 14: Portfolio Structure – 31 October 2014

    GENERAL MEETING OF SHAREHOLDERS – 19 NOVEMBER 2014 13 Portfolio Structure – 31 October 2014 Net Cash & Receivables Net Cash & Others Receivables 8% Banks 3% 8% Electricity: IPOs since 2% Generation the start of Infrastructure 17% FTIML's 3% mandate 15% Unlisted Electricity & 44% Gas: Distribution &

  15. Slide 15: Fondul Proprietatea Equity Placements in 2014

    GENERAL MEETING OF SHAREHOLDERS – 19 NOVEMBER 2014 14 Fondul Proprietatea Equity Placements in 2014 Placement Value Company Transaction Date (RON mn) OMV Petrom 17 May 2013 246.7 Transgaz 12 December 2013 303.5 Romgaz 17 June 2014 644.6 Transelectrica 9 July 2014 212.7 Conpet 13 November 2014 99.8 T

  16. Slide 16: Government SPO & IPO Calendar

    GENERAL MEETING OF SHAREHOLDERS – 19 NOVEMBER 2014 15 Government SPO & IPO Calendar Future IPOs and Privatizations Offering Offering Size Value FP Stake Value Investment Company Official Timeline1 FP Expectations Seller Size % (EUR mn) (EUR mn) Consortium Selected Delayed by the Morgan Stanley, Hidr

  17. Slide 17: Portfolio Holdings – Key Financials

    GENERAL MEETING OF SHAREHOLDERS – 19 NOVEMBER 2014 16 Portfolio Holdings – Key Financials EBITDA (RON mn) Net Profit (RON mn) 2011 2012 2013 % Change 2011 2012 2013 % Change TOTAL Top 20 Holdings1 13,510.6 15,080.9 18,359.5 21.7% 6,888.1 6,221.5 8,978.2 44.3% WEIGHTED TOTAL 2,324.8 2,593.8 3,165.9 2

  18. Slide 18: State Owned Companies – Key Financials

    GENERAL MEETING OF SHAREHOLDERS – 19 NOVEMBER 2014 17 State Owned Companies – Key Financials EBITDA (RON mn) Net Profit (RON mn) 2011 2012 2013 % Change 2011 2012 2013 % Change TOTAL 4,161.2 4,816.3 6,842.1 42.1% 1,472.8 1,290.7 2,645.9 105.0% WEIGHTED TOTAL1 670.4 806.8 1,197.2 48.4% 184.1 163.2 43

  19. Slide 19: 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.

  20. Slide 20: Total Distributions to Shareholders

    GENERAL MEETING OF SHAREHOLDERS – 19 NOVEMBER 2014 19 Total Distributions to Shareholders Total Distributions to Shareholders (mn RON) 2010 2011 2012 2013 2014 Total Gross Cash 1,124.3 432.7 507.7 536.4 601.3 3,202.4 Distributions Buy-Backs 0.0 120.0 0.0 962.6 1,072.11 2,154.7 Total 1,124.3 552.7 50

  21. Slide 21: Cash Distributions to Shareholders

    GENERAL MEETING OF SHAREHOLDERS – 19 NOVEMBER 2014 20 Cash Distributions to Shareholders Cash Distributions to Shareholders (RON) Gross Type Financial Year Paid In Distribution per Net Distribution per Share1 % Change Year on Year Share 2008 – 2009 Dividend 2010 0.08160 0.06854 - (aggregate) Dividen

  22. Slide 22: Updated Annual Cash Distribution Policy Status

    GENERAL MEETING OF SHAREHOLDERS – 19 NOVEMBER 2014 21 Updated Annual Cash Distribution Policy Status • The Fund Manager has amended the Fund’s Annual Cash Distribution Policy to reflect the FSA’s interpretation on the NAV calculation methodology, which in essence limits the Fund’s current ability to

  23. Slide 23: Dividend Income – Top 20 Portfolio Companies

    GENERAL MEETING OF SHAREHOLDERS – 19 NOVEMBER 2014 22 Dividend Income – Top 20 Portfolio Companies FP NET DIVIDEND (RON mn) 1 Top 20 Holdings 2014 2013 2012 2011 1 OMV Petrom SA 331.4 319.0 353.1 201.6 2 Hidroelectrica SA — — — 52.5 3 Romgaz SA 148.5 158.9 140.6 106.0 4 ENEL Distributie Banat SA — —

  24. Slide 24: Buy-Back Programs

    GENERAL MEETING OF SHAREHOLDERS – 19 NOVEMBER 2014 23 Buy-Back Programs No. of shares to be repurchased/ Average share Program Period Status Broker Cancellation of shares % of the Fund’s issued share capital price (RON/share) Ongoing. Cancellation Third March-July 2014 Completed 252.9 mn/1.89% 0.812

  25. Slide 25: Tender Offers

    GENERAL MEETING OF SHAREHOLDERS – 19 NOVEMBER 2014 24 Tender Offers FP pre-announcement Premium to pre- Announcement No. of shares to Tender price Discount of offer Tender Status share price announcement share date be repurchased (RON/share) price to NAV (%) (RON/share) price (%) First 10 October 20

  26. Slide 26: Tender Offer – Example of Pro-Rata Allocation

    GENERAL MEETING OF SHAREHOLDERS – 19 NOVEMBER 2014 25 Tender Offer – Example of Pro-Rata Allocation 50% of Total Share Capital 78.42% of Total Share Capital 100% of Total Share Capital Subscribed Subscribed Subscribed Total Number of 6,036,621,187 9,467,900,973 12,073,324,373 Shares Offered Shares R

  27. Slide 27: Secondary Listing on the LSE – Plan

    GENERAL MEETING OF SHAREHOLDERS – 19 NOVEMBER 2014 26 Secondary Listing on the LSE – Plan • Fully fungible trading between Bucharest and London • Listing currency will be U.S. Dollars • No new shares will be issued in London • Listing should bring new investors in the Fund • The draft Depositary Int

  28. Slide 28: Top Funds on LSE

    CORPORATE ACTIONS 27 Top 15 Funds on LSE Premium / Discount to % Listed Fund Symbol Listing Currency Total NAV (mn GBP) NAV (%) (approximately) Alliance Trust ATST GBP 2.85 -12.30% 96 Scottish Mortgage SMT GBP 2.7 0.74% 96 Fondul Proprietatea FP. USD 2.51 -24.34% 55 F&C Investment Trust FRCL GBP 2.5

  29. Slide 29: LSE Listing – Discounts / Premiums for LSE and SFM Funds

    GENERAL MEETING OF SHAREHOLDERS – 19 NOVEMBER 2014 28 LSE Listing – Discounts / Premiums for LSE and SFM Funds Average % Min % Max % SFM (All) -1.96% -50.18% 15.91% LSE (Top 15 largest) 5.72% -17.47% 107.10% • Fondul Proprietatea’s discount to NAV as at 11 November 2014 was 21.9%. Source: Jefferies,

  30. Slide 30: GSM Agenda

    GSM Agenda This material is intended solely for the recipient and should not be reproduced, copied or re-transmitted. Not for public use.

  31. Slide 31: General Shareholders Meeting Agenda (I)

    GENERAL MEETING OF SHAREHOLDERS – 19 NOVEMBER 2014 30 General Shareholders Meeting Agenda (I) EGM Agenda • The approval of the EGM agenda. • The approval of amendments of the Constitutive Act. • The approval of the authorization of the Sole Administrator to buy-back shares of Fondul Proprietatea S.A

  32. Slide 32: General Shareholders Meeting Agenda (II)

    GENERAL MEETING OF SHAREHOLDERS – 19 NOVEMBER 2014 31 General Shareholders Meeting Agenda (II) OGM Agenda • The approval of the OGM agenda. • The approval of the 2015 budget of Fondul Proprietatea SA. • The appointment of Deloitte Audit S.R.L. as the financial auditor of Fondul Proprietatea SA. • Th

  33. Slide 33: Candidates to the Board of Nominees

    GENERAL MEETING OF SHAREHOLDERS – 19 NOVEMBER 2014 32 Candidates to the Board of Nominees Candidate Bio • Independent non-Executive Board Director • Member of the Institute of Chartered Accountants in England and Julian Healy Wales • Member of the Board of Nominees of Fondul Proprietatea since 2012

  34. Slide 34: Fondul Proprietatea

    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.

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