S.C. Fondul Proprietatea SA · BVB:FP
S.C. Fondul Proprietatea SA — Fondul Proprietatea — FY2019 Earnings Presentation
34 slides from S.C. Fondul Proprietatea SA's earnings presentation, Feb 28, 2020
Slide 1: Fondul Proprietatea – 2019 Annual Results Conference Call
Fondul Proprietatea – 2019 28 February 2020 Annual Results Conference Call
Slide 2: Fund Information
FRANKLIN > TEMPLETON Fund Information <x lu = <x = lW o oa oO oa oO = 2) a Z Oo ae
Slide 3: The Fund – Key Facts
The Fund – Key Facts Fund Details1 RON USD FP Share Price5 and NAV (RON) NAV 11.72 bn 2.71 bn2 NAV/Share 1.7113 0.39512 1.7 Price/Share 1. 3400 0.30942 Price/GDR 64.96 15.00 Market Capitalization as at 27 February 20203 9.04 bn 2.06 bn3 1.2 Discount/Share as at 27 February 2020 22.87% Discount/GDR a
Slide 4: Shareholders Structure
Shareholders Structure Evolution (% Held)1 2% 2% 3% 6% 10% 10% 8% 3% 6% 6% 9% 9% 13% 18% 18% 19% 14% 19% 21% 9% 11% 14% 27% 28% 10% 17% 19% 20% 22% 43% 34% 54% 35% 37% 31% 55% 53% 28% 28% 30% 29% 28% 10% 25% 25% 6% 22% 20% 17% 16% 5% 6% 4% 16% 15% 15% 13% 39% 36% 3% 3% 3% 3% 3% 3% 29% 2% 3% 21% 20%
Slide 5: Unlisted holdings updated valuations as at 31 December 2019
Unlisted holdings updated valuations as at 31 December 2019 Value as at Value as at Impact of the independent Company 29 November 2019 31 December 2019 valuation update on NAV % Change (RON mn) (RON mn) (RON mn) Hidroelectrica 4,144.00 4,886.50 742.50 17.92% Bucharest Airports 912.00 1,022.90 110.90
Slide 6: NAV, Share price and GDR Performance
NAV, Share price and GDR Performance Cumulative Performance Since Performance 2011 2012 2013 2014 2015 2016 2017 2018 2019 YTD Inception1 NAV (RON) (0.47)% 8.91% 13.29% 1.39% (0.60)% 7.33% 13.10% 19.94% 31.23% (1.30)% 133.39% (30.32) Ordinary Share Price (RON) 38.30% 61.34% 14.53% (4.06)% 4.90% 21.4
Slide 7: Attribution to NAV Performance for Q4 2019
Attribution to NAV Performance for Q4 2019 Top Performers Weight in total % Change in NAV % Change in share price/ NAV Company Status NAV1 performance for Q4 2019 per share in Q4 2019 Hidroelectrica Unlisted 41.2% 8.77% 17.9% OMV Petrom Listed 21.3% 1.29% 5.8% Bucharest Airports Unlisted 8.6% 1.12%
Slide 8: Attribution to NAV Performance for 2019
Attribution to NAV Performance for 2019 Top Performers Weight in total % Change in NAV % Change in share price/ NAV Company Status NAV1 performance for 2019 per share in 2019 Hidroelectrica Unlisted 41.2% 11.44% 14.3% OMV Petrom Listed 21.3% 9.62% 49.5% Bucharest Airports Unlisted 8.6% 2.39% 18.8% N
Slide 9: Portfolio
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Slide 10: Portfolio Structure
Portfolio Structure Listed vs Unlisted By Sector as at 31 January 2020 (% NAV)1 as at 31 January 2020 (% NAV)1 Power Utilities: Generation……....44% Oil & Gas.……….20% Unlisted….…71% Power & Gas Utilities: Distribution & Supply…………...16% Listed……….25% Infrastructure........12% Net Cash & Receivables…4
Slide 11: Portfolio Structure – Listed vs. Unlisted
Portfolio Structure – Listed vs. Unlisted Listed Companies Unlisted Companies (% of NAV as at 31 December 2019) (% of NAV as at 31 December 2019) Hidroelectrica..………....41.16% OMV Petrom…………..21.33% ENEL Companies….…..11.26% Nuclearelectrica………..2.55% Bucharest Airport………..8.62% 25.68% 70.46% Alro……
Slide 12: Largest Holdings by NAV
Largest Holdings by NAV NAV as at % in NAV Majority 31 January 2020 as at Portfolio Company Status Shareholder % Stake1 (USD mn) 31 January 2020 Hidroelectrica Unlisted Romanian State 19.9% 1,128.29 41.71% OMV Petrom Listed OMV 9.9% 549.24 20.30% Bucharest Airports Unlisted Romanian State 20.0% 236.
Slide 13: Top Portfolio Holdings – 2019 Preliminary results
Top Portfolio Holdings – 2019 Preliminary results EBITDA (RON mn) Net profit (RON mn) Company 2018 2019 %yoy 2018 2019 %yoy Hidroelectrica 3,121.6 3,003 (3.8)% N/A N/A N/A OMV Petrom 8,393.1 7,756.9 (7.6)% 4,077.8 3,634.7 (12.2)% Bucharest Airports 557.1 587.9 5.5% 371.8 375.1 0.9% Alro 487.0 252.0
Slide 14: Hidroelectrica – Update
Hidroelectrica – Update 2019 preliminary results: • According to the management, in 2019 the company recorded a total turnover of RON 4,146.8 million, down 2.7% y.o.y. and an EBITDA of RON 3,003 million, down 3.8% y.o.y. • Total electricity sold out of own production reached 14.8 TWh, down 11.9% y.o
Slide 15: OMV Petrom – Update
OMV Petrom – Update Financial and Operational highlights 2018 2019 %YoY 2019 preliminary results Sales to external costumers (mn RON) 22,523 25,485 11.6% • Downstream Oil 17,075 18,237 6.4% • Downstream Gas 4,884 6,737 27.5% • Sales to external consumers reached RON 25.5 Clean CCS Operating Result 4
Slide 16: C.N. Aeroporturi Bucuresti – Update
C.N. Aeroporturi Bucuresti – Update Financial Performance 2016 2017 2018 Prelim. 2019 %yoy Operating revenues (mn RON) 754.7 890.9 992.6 1,074.2 8.2% Operating profit (mn RON) 263.6 337.6 445.9 432.2 (3.1) Net Income (mn RON) 224.7 290.7 371.8 375.1 0.9% Number of passengers (mn) 10.99 12.84 13.84 1
Slide 17: ENEL subsidiaries – Special dividends
ENEL subsidiaries – Special dividends • The General Shareholders Meeting of the companies E-Distribuție Banat, E-Distribuție Dobrogea and E-Distribuție Muntenia approved on 14 February 2020 the granting of dividends worth 2.96 billion RON (approximately 618 million euros), from retained earnings. •
Slide 18: Constanta Ports – Update
Constanta Ports – Update Prelim. Financial performance 2012 2013 2014 2015 2016 2017 2018 2019 % y/y Operating revenues (RON mn) 269.6 285.9 294.3 309.2 314.0 330.5 345.2 352.5 2.1% Operating profit (RON mn) 46.3 76.6 83.8 114.0 54.8 93.8 95.8 97.6 1.9% Net Income (RON mn) 35.6 65.0 70.3 97.4 36.8 7
Slide 19: Update on the liberalization of the electricity market
Update on the liberalization of the electricity market • The Government assumed responsibility on 26 December 2019 on the law liberalizing the electricity market starting 1 January 2021, and the gas market starting 1 July 2020. Also, on 6 January 2020, the Government repealed, through GEO 1/2020, th
Slide 20: Corporate Actions
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Slide 21: 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 1,081.3 278.0 25.4% 2000 18.3% 21.9% 17.5% 1500 15.5% 583.1 1,121.5 14.8% 832.5 10.5% 1000 600.0 236.6 181.5 484.4 362.6 344.7 257.5 8.1% 8.1% 7.5% 1,124.3 38
Slide 22: 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 The cancellation of shares will be 1 Jan – 2 Auerbach Tenth Finalized 750.0 mn/8.2% 0.9198 subject to shareholders’ approval
Slide 23: Seventh Tender Offer
Seventh Tender Offer Size of the Offer 200,000,000 shares, in the form of shares and GDRs Purchase price RON 1.39 per share and the USD equivalent of RON 69.50 per GDR Subscription period 29 January – 13 March 2020 Allocation method Pro-rata Intermediary Swiss Capital S.A. Dealer managers Swiss Capi
Slide 24: Dividend Recommendation for FY 2019
Dividend Recommendation for FY 2019 • In accordance with the Fund's Annual Cash Distribution Policy, the Fund Manager recommends a gross dividend of RON 0.0642 per share. Distributable profit (RON) 596,349,773 Less mandatory transfer to legal reserves (RON) (156,493,546) Proposed dividend (RON) 439,
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 2019 Total Dividends from Listed Companies (RON mn) 373.9 538.6 251.5 36.0 148.1 199.6 223.0 Total Dividends from Unlisted Companies (RON mn) 275.82 143.5 315.9 315.2 404.5 366.9 710.0 Total Annual
Slide 26: Investor relations – Upcoming events
Investor relations – Upcoming events FP Investor Days Bucharest 3-4 Sep Concorde Face to Face Conference Budapest 28 FP Annual GSM Apr Bucharest 2-3 Apr 24-26 US Road-Show / Mar Wood EME Conference Boston, New York More information about the Fund can be found on the website www.fondulproprietatea.ro
Slide 27: 28 April 2020 Annual GSM agenda – Main points
28 April 2020 Annual GSM agenda – Main points EGM agenda: • The approval of the amended • The approval of the decrease of the subscribed share capital of Fondul Proprietatea from RON • The approval of several Investment Policy Statement, which 3,959,264,762.44 to RON 3,749,282,292.08 amendments to t
Slide 28: 28 April 2020 Annual GSM agenda – Main points
28 April 2020 Annual GSM agenda – Main points OGM agenda: • The approval of the net profit allocation, and the approval of The continuation of the mandate of Franklin Templeton International the value of the gross dividend of RON 0.0642 per share Services S.À R.L. as Fondul Proprietatea’s alternativ
Slide 29: Financial results
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Slide 30: Statement of Financial Position
Statement of Financial Position 31 December 2019 31 December 2018 RON mn Audited Audited Cash and current accounts 31.9 19.6 Deposits with banks 338.4 187.1 Treasury bills - 49.6 Government bonds 137.3 131.6 Dividend receivables - 137.0 Equity investments 11,413.1 9,337.4 Other assets 0.3 1.5 Total
Slide 31: Statement of Comprehensive Income
Statement of Comprehensive Income 2019 2018 RON mn Audited Audited Net unrealised gain from equity investments at fair value through profit or loss 2,260.3 225.3 Gross dividend income 942.9 776.2 Net realised gain/ (loss) from equity investments at fair value through profit or loss 9.9 4.5 Interest
Slide 32: Disclaimer (I)
Disclaimer (I) 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
Slide 33: Disclaimer (II)
Disclaimer (II) The price of shares and income from them can go down as well as up and you may lose some or all of your capital invested. The previous results of a fund or company do not account for future performances. Currency fluctuations will affect the value of foreign investments. All investme
Slide 34: Fondul Proprietatea contact details
Fondul Proprietatea Premium Point Buzesti Street 78-80, 1st District Bucharest 011017 www.fondulproprietatea.ro