S.C. Fondul Proprietatea SA · BVB:FP
S.C. Fondul Proprietatea SA — Fondul Proprietatea — Shareholder Meeting (September 2014)
31 slides from S.C. Fondul Proprietatea SA's shareholder meeting presentation, Sep 23, 2014
Slide 1: Fondul Proprietatea – General Shareholders Meeting
Fondul Proprietatea – General Shareholders Meeting 23 September 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
Slide 2: Disclaimer
DISCLAIMER 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 intended to constitute advice on investment,
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
FUND INFORMATION 3 The Fund – Key Facts Fund Details as at 29 August 20141 RON EUR FP Share Price⁵ and NAV NAV 14.94 bn 3.39 bn2 NAV/Share 1.2639 0.28642 1.20 Price/Share3 0.8770 0.1987 Discount3 30.61% 30.61% 0.90 Number of Shares in Issue 13,538,087,407 Number of Paid Shares 13,174,101,815 0.60 Nu
Slide 5: NAV and Share Price Performance
FUND INFORMATION 4 NAV and Share Price Performance Cumulative Performance Since Performance 2011 2012 2013 YTD1 Inception1 NAV (0.47) 8.91 13.29 29.80 5.69 Ordinary Share Price (30.32) 38.30 61.34 74.30 12.11 Average Annual Discount 2011 2012 2013 YTD2 Current Discount3 55.67% 50.20% 41.30% 33.04% 2
Slide 6: 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 7: Portfolio Structure – August 2014
PORTFOLIO PERFORMANCE 6 Portfolio Structure – 29 August 2014 Net Cash & Others Net Cash & Receivables Banks 2% Receivables 8% IPOs since 2% Electricity: 8% the start of Infrastructure Generation FTIML's 3% 16% mandate 15% Unlisted Electricity 42% & Gas: Distribution Listed & Supply 35% 23% Oil & Gas
Slide 8: Largest Holdings by NAV
PORTFOLIO PERFORMANCE 7 Largest Holdings by NAV Majority NAV % in NAV No. Portfolio Company Status % Stake1 as at 29 August 2014 as at Shareholder (EUR mn) 29 August 2014 1 OMV Petrom SA Listed OMV 19.0% 1,194.7 35.3 2 Hidroelectrica SA Insolvency Romanian State 19.9% 477.1 14.1 3 Romgaz SA Listed R
Slide 9: Main Transactions in 2014
PORTFOLIO PERFORMANCE 8 Main Transactions in 2014 Market Offering Investment Company Transaction Seller Value Comments Stake Consortium Selected (EUR mn) Completed in June Romgaz ABO FP 4.99% 146.4 Goldman Sachs, Erste-BCR 2014 Citigroup, Raiffeisen C&I, New Completed in June Electrica IPO 51% 444.3
Slide 10: Government SPO & IPO Calendar
PORTFOLIO PERFORMANCE 9 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, Hidroelectrica IPO – June 2014 ins
Slide 11: Example of a Turnaround – Hidroelectrica
PORTFOLIO PERFORMANCE 10 Example of a Turnaround – Hidroelectrica Net Income vs. Foregone Profits (RON mn) 1,590 1,060 282 1,573 220 680 530 815 784 719 619 292 0 48 -125 -508 -530 2009 2010 2011 2012 2013 Aug-14 Actual Net Profits Forgone Profits Actual Loss Source: Company ‘s Financial Statements.
Slide 12: Improved Performance – Constanta Port (APM)
PORTFOLIO PERFORMANCE 11 Improved Performance – Constanta Port (APM) RON mn 2011 2012 2013 % YoY 30.06.2013 30.06.2014 % YoY Operating revenues 244.3 269.6 285.9 +6.1% 132.4 137.2 +3.6% Operating profit 51.0 46.3 76.6 +65.6% 33.7 50.9 +51.1% Net Income 42.3 35.6 65.0 +82.8% 29.7 41.8 +40.7% • Corpor
Slide 13: IPO Candidate – Salrom
PORTFOLIO PERFORMANCE 12 IPO Candidate – Salrom Financial Information Quick Facts RON mn 2010 2011 2012 2013 H1 2014 Sector Salt mining Operating Revenues 276.2 282.7 303.5 327.0 134.0 Type Unlisted Operating Profit 12.2 5.2 25.3 48.8 17.6 Weight in NAV1 0.7% Net Profit 5.9 1.3 20.7 42.8 13.4 FP Sta
Slide 14: Need of Restructuring – CE Oltenia
PORTFOLIO PERFORMANCE 13 Need of Restructuring – CE Oltenia Financial Information RON mn 2011 2012² 2013 Operating Revenues 4,026.4 3,347.1 4,278.3 Operating Profit 347.9 44.5 (28.0) Net Profit 179.8 118.3 4.6 Dividends N/A¹ 57.1 0 Employees NA¹ 18,761 18,815 30 November 2012 30 November 2013 31 Mar
Slide 15: 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 16: Cash Distributions to Shareholders
CORPORATE ACTIONS 15 Cash Distributions to Shareholders Gross Distribution/Share Net Distribution/Share Financial year Paid in (RON) (RON)1 Dividend 2008 – 2009 (aggregate) 2010 0.08160 0.06854 Dividend 2010 2011 0.03141 0.02638 Dividend 2011 2012 0.03854 0.03237 Dividend 2012 2013 0.04089 0.03435 R
Slide 17: Buy-Back Programs
CORPORATE ACTIONS 16 Buy-Back Programs No. of shares to be repurchased/ Average share Cancellation of Program Period Status % of the Fund’s issued share price Broker shares capital (RON/share) Approved by To be Fourth - shareholders 991.0 mn/7.32% NA - selected on 28 April 2014 Update on the Fourth
Slide 18: Updated Annual Cash Distribution Policy
CORPORATE ACTIONS 17 Updated Annual Cash Distribution Policy Status • The official interpretation from the FSA on the NAV computation methodology prohibits the distribution of dividends for this and next year • The Fund Manager is committed to paying an annual cash distribution to shareholders • The
Slide 19: Dividend Income
CORPORATE ACTIONS 18 Dividend Income FP NET DIVIDEND (RON mn) 2014 2013 2012 2011 Total Dividends from Top 20 Holdings (RON mn) 619.8 580.9 526.0 423.6 Total Dividends from Listed Companies (RON mn) 538.6 373.9 450.1 304.0 Total Dividends from Unlisted Companies (RON mn) 131.2 275.81 168.9 215.1 Tot
Slide 20: Secondary Listing on the LSE – Plan
CORPORATE ACTIONS 19 Secondary Listing on the LSE – Plan The documentation for the secondary listing of the Fund on the LSE has been finalized and is ready to be filed. The target date for the LSE listing is mid-October 2014 and the only step still Status required for the completion of process is FS
Slide 21: Shareholder Returns and Performance
Shareholder Returns and Performance This material is intended solely for the recipient and should not be reproduced, copied or re-transmitted. Not for public use.
Slide 22: Shareholder Returns
CORPORATE ACTIONS 21 Shareholder Returns NAV per Share as at 28 April 2014 Distribution (RON/Share) NAV per Share as at 29 August 2014 Return 1.2224 0.0500 1.2639 7.24% Share Price as at 28 April 2014 Distribution (RON/Share) Share Price as at 22 September 2014 Return 0.7640 0.0500 0.9330 23.47% 1.
Slide 23: FP Performance
CORPORATE ACTIONS 22 FP Performance FP Share Price1 (RON) and Discount (%) 0.9000 59% 0.7500 51% 0.6000 42% 0.4500 34% 0.3000 25% 1/11 5/11 9/11 1/12 5/12 9/12 1/13 5/13 9/13 1/14 5/14 Discount Share Price RON 1. Source: Bucharest Stock Exchange, Bloomberg, for the period 25 January 2011 – 22 Septem
Slide 24: 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.
Slide 25: Update on the New Investment Management Agreement
GSM AGENDA 24 Update on the New Investment Management Agreement Current Investment Management Agreement Fees • Base Fee: 0.479% • Consideration: Average quarterly market capitalization of the Fund Duration • Until 29 September 2014 New Investment Management Agreement Fees • Base Fee: 0.60% • Conside
Slide 26: EGM Agenda
GSM AGENDA 25 EGM Agenda EGM 1: The approval of the EGM agenda EGM 2: The approval of the amendment of the Constitutive Act as follows: 2.1. The approval of the amendment of Article 9 paragraph 2 of the Constitutive Act of Fondul Proprietatea S.A. as imposed by the Financial Supervision Authority (“
Slide 27: EGM Agenda
GSM AGENDA 26 EGM Agenda 2.6. The approval of the amendment of Article 34 paragraph 5³ of the Constitutive Act of Fondul Proprietatea S.A. as imposed by the FSA through Decision no. 75/25.06.2014, as follows. “(5) Fondul Proprietatea will not engage in any “raising of capital” activities, within the
Slide 28: EGM Agenda
GSM AGENDA 27 EGM Agenda EGM 5: The approval of 15 October 2014 as the registration date, in accordance with the provisions of Article 238 para. (1) of Law no. 297/2004. EGM 6: The empowerment, with authority to be substituted, of Grzegorz Maciej KONIECZNY, as legal representative of FTIML UK Buchar
Slide 29: OGM Agenda
GSM AGENDA 28 OGM Agenda OGM 1: The approval of the OGM agenda. OGM 2: The approval of some amendments of the IMA signed between FTIML UK Bucharest Branch and Fondul Proprietatea SA on 25 February 2010 as imposed by FSA’s Decision no. 70/19 June 2014, as follows. The approval of the amendment of Art
Slide 30: OGM Agenda
GSM AGENDA 29 OGM Agenda OGM 5: The approval of the Addendum no. 2 to the IMA, substantially in the form mentioned in the Annex no. 2 of this notice and the empowerment of the Chairman of the Board of Nominees to sign the said Addendum no. 2 with the Sole Administrator on behalf of Fondul Proprietat
Slide 31: Fondul Proprietatea contact details
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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