S.C. Fondul Proprietatea SA · BVB:FP
S.C. Fondul Proprietatea SA — Fondul Proprietatea — FY2012 Earnings Presentation
42 slides from S.C. Fondul Proprietatea SA's earnings presentation, February 2013
Slide 1: Fondul Proprietatea 2012 Preliminary Annual Results
Fondul Proprietatea 2012 Preliminary Annual Results 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 and its contents are confidential and must not be distributed, published or reproduced (in whole or in part) by any medium or in any form, or disclosed or made available by recipients to any other person. By attending this presentation and/or receiving this
Slide 3: Disclaimer
DISCLAIMER 2 Disclaimer This presentation is addressed only to qualified investors within the meaning of Article 2(1)(e) of the Prospectus Directive (“Qualified Investors”). The Fund has not authorized any offer to the public of securities in any member state of the European Economic Area (the “EEA”
Slide 4: 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 5: The Fund – Key Facts
FUND INFORMATION 4 The Fund – Key Facts Fund Details as at 31 January 2013 Dividends Base Currency RON 0.09000 0.08160 Fund Launch Date 28 December 2005 Franklin Templeton Appointment Date 29 September 2010 0.06000 Listing Date 25 January 2011 0.03854 0.04080 0.03141 Values1 RON EUR2 0.03000 NAV 15.
Slide 6: FTIML – Key Milestones 2012–2013
FUND INFORMATION 5 FTIML – Key Milestones 2012–2013 4/12 10/12 11/12 12/12 Approval of the second buy-back programme / Fall Analyst Day Extension of the mandate to list the Changes to NAV valuation Approval of the RON 0.03854 dividend per share for 2011 / Fund on the WSE until 30 June 2013 / methodo
Slide 7: Shareholders Structure
FUND INFORMATION 6 Shareholders Structure1 Evolution (% Held) 100% 6% 9% 8% Largest Shareholders2 11% 11% 12% 12% 11% 11% 11% 14% Elliott Associates 14.95% 20% 27% City of London Investment Management3 9.69% 75% 10% 37% 9% 43% The Royal Bank of Scotland3 5.39% 48% 50% 52% 54% 9% 54% 31% Total Number
Slide 8: Net Asset Value
FUND INFORMATION 7 Net Asset Value Cumulative Performance Fourth Quarter 2012: 20.00% Cumulative Performance 2012: 8.91% NAV (RON) / Share Dividend Dividend 0.03141 0.03854 1.2004 1.1951 1.1922 1.1572 1.1688 1.1692 1.1942 1.1919 1.1754 1.1625 1.1450 1.1124 1.1352 1.0902 1.1147 1.0742 1.0788 1.1290 1
Slide 9: Net Asset Value – December vs. November 2012
FUND INFORMATION 8 Net Asset Value – December vs. November 2012 30 November 31 December Impact on Impact1 on 2012 Value Valuation method as per 30 2012 Value Valuation method as per Total NAV NAV/share (RON mn) Nov 2012 NAV report (RON mn) 31 Dec 2012 NAV report (RON mn) (RON) Value as per independe
Slide 10: Contributors to NAV Performance for Q4 2012
FUND INFORMATION 9 Contributors to NAV Performance1 for Q4 2012 TOP PERFORMERS % change in NAV performance Change in NAV per share Company Status % in Total NAV for Q4 20121 (RON) Hidroelectrica SA Unlisted 13.4% 15.7% 0.1519 OMV Petrom SA Listed 32.6% 3.1% 0.0303 Nuclearelectrica SA Unlisted 4.3% 1
Slide 11: Contributors to NAV Performance for 2012
FUND INFORMATION 10 Contributors to NAV Performance1 for 2012 TOP PERFORMERS % change in NAV performance Change in NAV per share Company Status % in Total NAV for 20121 (RON) OMV Petrom SA Listed 32.6% 10.9% 0.1194 Nuclearelectrica SA Unlisted 4.3% 1.0% 0.0107 ENEL Distributie Banat SA Unlisted 3.0%
Slide 12: FP Market Valuation / Performance
FUND INFORMATION 11 FP Market Valuation / Performance NAV vs. Market Capitalization (EUR bn)1 FP Share Price2 (RON) and Discount (%) 3 0.65000 65% 1.85 Unlisted 2 0.55000 55% Net cash and 0.18 receivables 1 1.84 0.45000 45% 1.44 Listed 0 0.35000 35% NAV Market Capitalization 31 December 2012 11 Febr
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 (I)
PORTFOLIO PERFORMANCE 13 Portfolio Structure (I) 31 January 2012 31 January 2013 Net Cash & Net Cash & Others Receivables Others Receivables 4% 5% 3% 3% Banks Banks 3% 4% Power Utilities: Power Utilities: Infrastructure Generation Generation Infrastructure 3% 33% 23% 3% Power & Gas Utilities: Power
Slide 15: Portfolio Structure (II)
PORTFOLIO PERFORMANCE 14 Portfolio Structure (II) 31 January 2012 31 January 2013 Net Cash & Net Cash & Receivables Receivables 3% 5% Listed Listed 36% 42% Unlisted Unlisted 53% 61% • As at 31 January 2013, the portfolio included stakes in 69 companies (25 listed and 44 unlisted) • Disposals for the
Slide 16: Largest Holdings by NAV
PORTFOLIO PERFORMANCE 15 Largest Holdings by NAV NAV % in NAV Majority as at 31 January as at 31 No. Portfolio Company Status Shareholder % Stake 2013 (EUR mn) January 2013 1 OMV Petrom Listed OMV 20.1% 1,141.8 33.0% 2 Hidroelectrica Insolvency Romanian State 19.9% 456.6 13.2% 3 Romgaz IPO 2013 Roma
Slide 17: Portfolio Structure – SPO & IPO Calendar
PORTFOLIO PERFORMANCE 16 Portfolio Structure – SPO & IPO Calendar Privatization Progress Market Value Company Share Sale4 Offering Stake (mn EURO) Seller Investment Consortium Selected Comments BCR, Swiss Capital, Intercapital Transelectrica SPO–April 2012 15.0% 37.62 MECMA Completed in March 2012 I
Slide 18: Disposal of the Unlisted Power and Gas Distribution Companies
PORTFOLIO PERFORMANCE 17 Portfolio Structure – Disposal of the Unlisted Power and Gas Distribution Companies Company FP Stake NAV EUR mn % NAV Background: • In March 2012, the Fund Manager selected Citigroup E.ON Moldova Distributie 22% 73.2 2.2% Global Markets Ltd. as exclusive intermediary to E.ON
Slide 19: Corporate Governance Code and Listing of SOEs
PORTFOLIO PERFORMANCE 18 Corporate Governance Code and Listing of SOEs Corporate Governance Code was Approved by OUG 109/2011 on 30 November 2011 Professional Company FP Stake % in Total NAV NAV EUR mn Listing Status Independent Board Management Hidroelectrica 20% 13.4% 451.8 X X X Romgaz 15% 8.7% 2
Slide 20: Active Management – Board Members
PORTFOLIO PERFORMANCE 19 Active Management – Board Members No. of Directors Holdings % Stake¹ % in Total NAV¹ No. of Board Members² Nominated by FP² 1 OMV Petrom SA 20% 32.6% 9 1 2 Romgaz SA 15% 8.7% 5 1 3 Complexul Energetic Oltenia SA 22% 5.9% 7 2 4 Nuclearelectrica SA 10% 4.3% 7 1 5 Enel Distribu
Slide 21: 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 22: Buy-Back Program (I)
CORPORATE ACTIONS 21 Buy-Back Program (I) Second Buy-Back Program: • New buy-back program to repurchase 1.1 bn shares, equivalent to 7.9% of the Fund’s issued share capital was approved by shareholders at the 25 April 2012 Extraordinary General Shareholders Meeting • The execution of the buy-back pr
Slide 23: Buy-Back Program (II)
CORPORATE ACTIONS 22 Buy-Back Program (II) Average Daily Turnover in January 2013 (EUR thousands) 2,411 706 511 345 204 198 191 139 FP OMV Banca Transilvania BRD Transelectrica SIF Oltenia SIF Moldova Transgaz Second Buy-Back Program Available cash as at 31 January 20134 RON 775.1 mn / EUR 176.8 mn1
Slide 24: Secondary Listing on the Warsaw Stock Exchange
CORPORATE ACTIONS 23 Secondary Listing on the Warsaw Stock Exchange On 27 June 2012, the Fund’s shareholders: • Approved the details of the secondary listing plan on the WSE. • Empowered the Fund Manager to file the documentation for the secondary listing by 31 December 2012. • Given the time taken
Slide 25: Dividend Income – Top 20 Portfolio Companies
CORPORATE ACTIONS 24 Dividend Income – Top 20 Portfolio Companies PROFIT DIVIDEND PAYOUT % FP NET DIVIDEND 1 Top 20 Holdings 2011 2010 2012 2011 2012 2011 1 OMV Petrom SA 3,685.6 2,189.7 47% 46% 353.1 201.6 2 Hidroelectrica SA 6.4 292.4 – 90% – 52.5 3 Romgaz SA 1,031.7 651.2 90% 109% 140.6 106.0 4 C
Slide 26: Investor Relations / Upcoming Events
CORPORATE ACTIONS 25 Investor Relations / Upcoming Events Date Event 1 March 2013 2013 Spring Analyst Day 6–7 March 2013 Edmond de Rothschild Annual Conference in London 21–22 March 2013 HSBC CEEMEA Investor Forum in New York 25 – 28 March 213 U.S. Road-show 23 – 24 April 2013 Spring Analyst and Inv
Slide 27: Other Issues
CORPORATE ACTIONS 26 Other Issues Legal Updates: • On 10 October 2012, the Bucharest Court of Appeal upheld the claim of a minority shareholder to annul 4 resolutions of the September 2010 GSM, relating to the changeover in management; • The same shareholder filed actions against several other share
Slide 28: 2012 Preliminary Results
2012 Preliminary Results This material is intended solely for the recipient and should not be reproduced, copied or re-transmitted. Not for public use.
Slide 29: Income Statement
2012 PRELIMINARY ANNUAL RESULTS 28 Income Statement Million RON (audited) 2011 2012 Revenues from Current Activity, Out of Which: 617.9 871.8 • Revenues from Financial Assets 519.1 619.0 • Interest Income 41.1 34.9 • Reversal of Impairment Adjustments & Provisions 30.5 5.7 • Revenues from Disposal o
Slide 30: Balance Sheet
2012 PRELIMINARY ANNUAL RESULTS 29 Balance Sheet Million RON (audited) 2011 2012 • Intangible assets 0.0 0.3 • Financial Assets 10,627.9 11,097.8 Non-Current Assets–Total 10,627.9 11,098.1 Current Assets–Total 549.2 776.5 • Prepaid expenses 0.0 0.1 • Payables Within One Year 42.2 21.1 Total Assets L
Slide 31: Appendix I – Update on Top 5 Holdings
Appendix I – Update on Top 5 Holdings This material is intended solely for the recipient and should not be reproduced, copied or re-transmitted. Not for public use.
Slide 32: OMV Petrom – 2012 Highlights (I)
APPENDIX I 31 OMV Petrom – 2012 Highlights (I) OMV Petrom Price Evolution vs. BET Index (RON)¹ - 2012 Quick Facts Sector Integrated Oil & Gas 5,450 Type 0.45 Listed Weight in NAV2 33.0% 0.4 5,150 FP Stake2 RON 5,004 mn (EUR 1,142 mn) 0.35 4,850 Shareholding Structure OMV AG 51% 0.3 4,550 Ministry of
Slide 33: OMV Petrom – 2012 Highlights (II)
APPENDIX I 32 OMV Petrom – 2012 Highlights (II) Financial Information Million RON (IFRS) 2010 2011 9m 2011 9m 2012 Sales 18,615.7 22,613.7 16,224.0 19,185.0 Operating Profit 2,985.5 4,935.8 3,754.0 3,989.0 Net Profit 2,189.7 3,758.6 2,921.0 2,892.0 Dividends 1,002.6 1,756.0 n.a. n.a. • June: OMV Pet
Slide 34: Hidroelectrica – 2012 Highlights (I)
APPENDIX I 33 Hidroelectrica – 2012 Highlights (I) Quick Facts Financial Information Sector Electricity Producer Type Unlisted – Insolvency RON mn 2010 2011 2012³ 9m 2011 9m 2012 Weight in NAV2 13.2% Turnover 3,273.7 3,020.6 2,928.0 1,640.0 1,262.9 FP Stake2 RON 2,001 mn (EUR 457 mn) Market Share 36
Slide 35: Hidroelectrica – 2012 Highlights (II)
APPENDIX I 34 Hidroelectrica – 2012 Highlights (II) Current Status: • Insolvency proceedings are ongoing; • Reduction of Hidroelectrica’s high operating costs is ongoing. Main Operational Measures Implemented¹: • Terminated 6 bilateral contracts totaling 7.4 TWh / year; • Renegotiated 4 bilateral co
Slide 36: Romgaz – 2012 Highlights
APPENDIX I 35 Romgaz – 2012 Highlights Calendar of Gradual Elimination of Regulated Gas Prices¹ Internal Production Price (RON/MWh) Quick Facts 140 Sector Oil & Gas 120 Type Unlisted–IPO 2013 100 Weight in NAV2 8.6% 80 FP Stake2 RON 1,296 mn (EUR 296 mn) 60 Shareholding Structure 40 Ministry of Econ
Slide 37: CE Oltenia – 2012 Highlights
APPENDIX I 36 CE Oltenia – 2012 Highlights Quick Facts Financial Information Sector Electricity Generation Type Unlisted Weight in NAV³ 5.8% RON mn 2010¹ 2011¹ 2012² FP Stake³ RON 880 mn (EUR 201 mn) Operating Revenues Market Share 31% 3,165.8 4,026.5 406.3 Installed Capacity 3,570 MW Operating Prof
Slide 38: Nuclearelectrica – 2012 Highlights
APPENDIX I 37 Nuclearelectrica – 2012 Highlights Cost vs. Market Price¹ (RON/MWh) Quick Facts 250 Sector Electricity Generation 220 Type Unlisted – IPO 2013 190 Weight in NAV² 4.3% 160 FP Stake² RON 648 mn (EUR 148 mn) 130 Market Share 21% (2010); 19% (2011) 100 Installed Capacity 1,414 MW 1/12 3/12
Slide 39: Appendix II – Romanian Gas & Electricity Market
Appendix II – Romanian Gas & Electricity Market This material is intended solely for the recipient and should not be reproduced, copied or re-transmitted. Not for public use.
Slide 40: Calendar of Gradual Elimination of Regulated Gas Prices
APPENDIX II 39 Calendar of Gradual Elimination of Regulated Gas Prices Internal Production Price (RON/MWh) 140 120 Non-Household Consumers 100 Household Consumers 80 60 40 20 12/12 6/13 12/13 6/14 12/14 6/15 12/15 6/16 12/16 6/17 12/17 6/18 Calendar of Gradual Elimination of Regulated Electricity Pr
Slide 41: Thank you!
Thank you! This material is intended solely for the recipient and should not be reproduced, copied or re-transmitted. Not for public use.
Slide 42: Fondul Proprietatea Franklin Templeton Investment Management UK Bucharest Branch
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. FTIF