S.C. Fondul Proprietatea SA · BVB:FP
S.C. Fondul Proprietatea SA — Fondul Proprietatea — FY2018 Earnings Presentation
31 slides from S.C. Fondul Proprietatea SA's earnings presentation, Feb 15, 2019
Slide 1: 2018 Annual Results Conference Call
Fondul Proprietatea – 15 February 2019 2018 Annual 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 9.88 bn 2.40 bn2 NAV/Share 1.3692 0.33182 Price/Share 0.8050 0.19512 1.3 Price/GDR 40.44 9.80 Market Capitalization as at 14 February 20193 6.13 bn 1.46 bn3 Discount/Share as at 14 February 2019 39.69% 0.9 Discount/GDR as a
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% 18% 17% 14% 19% 14% 9% 11% 12% 12% 14% 14% 15% 15% 16% 10% 16% 16% 17% 17% 18% 43% 33% 34% 35% 34% 54% 27% 35% 35% 35% 35% 37% 31% 34% 55% 53% 53% 31% 31% 30% 30% 30% 10% 25
Slide 6: Independent Valuations of Unlisted Holdings as at December 2018 (I)
Independent Valuations of Unlisted Holdings as at 31 December 2018 (I) Impact of the Value as at Value as at independent Company 29 November 2018 31 December 2018 % Change valuation update on (RON mn) (RON mn) NAV (RON mn) Hidroelectrica SA 3,531.0 4,276.0 745.0 21.1% CN Aeroporturi Bucuresti SA 791
Slide 7: Independent Valuations of Unlisted Holdings as at December 2018 (II)
Independent Valuations of Unlisted Holdings as at 31 December 2018 (II) Impact of the Value as at Value as at independent Holding 29 November 2018 31 December 2018 % Change valuation update on (RON mn) (RON mn) NAV (RON mn) Posta Romana SA 17.3 6.7 (10.6) (61.3)% CN Administratia Porturilor Dunarii
Slide 8: NAV, Share price and GDR Performance
NAV, Share price and GDR Performance Cumulative Performance Since Performance 2011 2012 2013 2014 2015 2016 2017 2018 YTD1 Inception1 NAV (RON) (0.47)% 8.91% 13.29% 1.39% (0.60)% 7.33% 13.10% 19.94% (2.86)% 75.05% Ordinary Share Price (RON) (30.32)% 38.30% 61.34% 14.53% (4.06)% 4.90% 21.46% 9.90% (8
Slide 9: Attribution to NAV Performance for Q4 2018
Attribution to NAV Performance for Q4 2018 Top Performers Weight in total % Change in NAV % Change in share price/ NAV Company Status NAV1 performance for Q4 2018 per share in Q4 2018 Hidroelectrica SA Unlisted 41.8% 8.91% 21.1% CN Aeroporturi Bucuresti SA Unlisted 8.4% 1.01% 8.8% Nuclearelectrica S
Slide 10: Attribution to NAV Performance for 2018
Attribution to NAV Performance for 2018 Top Performers Weight in total % Change in NAV % Change in share price/ NAV Company Status NAV1 performance for 2018 per share in 2018 Hidroelectrica SA Unlisted 41.8% 9.95% 19.9% OMV Petrom SA Listed 16.6% 1.68% 4.5% CN Aeroporturi Bucuresti SA Unlisted 8.4%
Slide 11: Portfolio
Portfolio This material is intended solely for the recipient and should not be reproduced, copied or re-transmitted. Not for public use
Slide 12: Portfolio Structure
Portfolio Structure Listed vs Unlisted By Sector By Controlling Ownership as at 31 January 2019 (% NAV)1 as at 31 January 2019 (% NAV)1 as at 31 December 20182 Power Utilities: Generation……....41% Oil & Gas.……….18% State Unlisted….…71% Power & Gas Utilities: Controlled Distribution & Entities………57%
Slide 13: Portfolio Structure – Listed vs. Unlisted
Portfolio Structure – Listed vs. Unlisted Listed Companies Unlisted Companies (% of NAV as at 31 December 2018) (% of NAV as at 31 December 2018) Hidroelectrica..………....41.84% OMV Petrom…………..16.57% ENEL Companies….…..12.24% Alro ………...……………2.20% Bucharest Airport………..8.43% BRD GSG.……...………1.87% 22.
Slide 14: Largest Holdings by NAV
Largest Holdings by NAV NAV as at % in NAV Majority 31 January 2019 as at Portfolio Company Status Shareholder % Stake1 (USD mn) 31 January 2019 Hidroelectrica SA Unlisted Romanian State 19.9% 941.48 39.30 OMV Petrom SA Listed OMV 9.9% 441.94 18.45 CN Aeroporturi Bucuresti SA Unlisted Romanian State
Slide 15: Top Portfolio Holdings – 2018 financials
Top Portfolio Holdings – 2018 financials EBITDA (RON mn) Net profit (RON mn) Company 2017 2018 %yoy 2017 2018 %yoy Hidroelectrica SA 2,258.8 3,049.3 35.0% 1,359.7 1,548.9 13.9% OMV Petrom SA 6,615.7 8,393.1 26.9% 2,489.3 4,077.8 63.8% BRD Groupe Societe Generale SA - - - 1,414.6 1,564.7 10.6% SN a S
Slide 16: Hidroelectrica – Update
Hidroelectrica – Update Dividends: Pre-tax Cumulated Profit (RON mn) • On 19 December 2018, the company’s shareholders approved a RON 687 mn special dividend distribution 1,980 1,944 • FP received RON 137 mn 2018 Financials: 1,602 1,538 • Preliminary unaudited net profit increased by 14% to RON 1.55
Slide 17: Hidroelectrica – Updated Valuation
Hidroelectrica – Updated Valuation 31 December 2018 NAV 31 January 2019 NAV RON 4,276.0 mn RON 3,885.0 mn Valuation methodology The adjustments to the valuation were realized based on a probabilistic three scenarios analysis, having as main parameters: • The volume of electricity sold on the regulat
Slide 18: OMV Petrom – Update
OMV Petrom – Update 2018 results1 • Sales increased to RON 22.5 bn in 2018, around 16% compared to 2017, on the back of higher oil prices and higher electricity sales volumes, lower production costs and exploration expenses • Operating profit increased to RON 5.2 bn, over 59% higher compared to 2017
Slide 19: Key events with impact on the Fund's portfolio
Key events with impact on the Fund’s portfolio On 18 December 2018, the Minister of Public Finance published on its website a fiscal package to be passed through Emergency Government Ordinance (“OUG”), targeting the electricity, gas, telecom, banking and private pension fund sectors. The main provis
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: Dividend Proposal for FY 2018
Dividend Proposal for FY 2018 The Investment Manager’s proposal for the dividend distribution for the 2018 financial year to be approved in the General Shareholders’ Meeting on 4 April 2019 is as follows: • RON 654.85 million gross dividend distribution • RON 0.0903 dividend per share (implying a yi
Slide 22: 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 1,870.6 689.0 25.4% 2000 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 11.3% 7.5% 362.6 344.7 8.1% 34.2 1,124.3 389.3 189.5 249.1 500
Slide 23: 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 14 Nov 2017 – Wood & Co., Cancellation of shares on the agenda Ninth Finalized 1,488.0 mn/16.3% 0.9319 31 Dec 2018 Jefferies In
Slide 24: Annual dividend income – Top 10 portfolio companies
Annual dividend income – Top 10 portfolio companies Dividend Payout (%) FP Net Dividend (RON mn) Top 10 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 - 106.8 107.6 C
Slide 25: Total dividend income from portfolio companies
Total dividend income from portfolio companies FP Net Dividend (RON mn) 2013 2014 2015 2016 2017 2018 Total Dividends from Listed Companies (RON mn) 373.9 538.6 251.5 36.0 148.1 199.6 Total Dividends from Unlisted Companies (RON mn) 275.82 143.5 315.9 315.2 404.5 366.9 Total Annual Dividend Income (
Slide 26: Investor relations – Upcoming events
Investor relations – Upcoming events Rosenblatt Securities CEMEA Conference New York 11-12 Apr PKO BP CEE Capital Markets Conference London 4 FP Annual GSM Apr Bucharest 18-19 Mar 27-28 Feb Romania Investor Days London More information about the Fund can be found on the website www.fondulproprietate
Slide 27: 4 April 2019 GSM agenda – Main points
4 April 2019 GSM agenda – Main points EGM agenda: • The cancelation of 1,487,992,569 own shares acquired by • The approval of several amendments to the Constitutive Fondul Proprietatea during the ninth buy-back programme Act for implementing the latest changes in legislation and and the decrease of
Slide 28: 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 29: Statement of Financial Position
Statement of Financial Position 31 December 2018 31 December 2017 RON mn Audited Audited Cash and current accounts 19.6 19.2 Deposits with banks 187.1 1,276.7 Treasury bills 49.6 46.3 Government bonds 131.6 195.9 Dividend receivables 137.0 - Equity investments 9,337.4 9,278.2 Other assets 1.5 10.7 T
Slide 30: Statement of Comprehensive Income
Statement of Comprehensive Income 2018 2017 RON mn Audited Audited Gross dividend income 776.2 740.4 Net unrealised gain/ (loss) from equity investments at fair value through profit or loss 225.3 222.8 Interest income 9.8 11.9 Net realised gain/ (loss) from equity investments at fair value through p
Slide 31: 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.