S.C. Fondul Proprietatea SA · BVB:FP
S.C. Fondul Proprietatea SA — Fondul Proprietatea — Q3 2013 Earnings Presentation
47 slides from S.C. Fondul Proprietatea SA's earnings presentation, Nov 14, 2013
Slide 1: 2013 Third Quarter - Results Presentation
2013 Third Quarter - Results Presentation 14 November 2013 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 October 2013 Distributions per Share (RON) 0.09000 0.08160 Base Currency RON Fund Launch Date 28 December 2005 0.06000 Franklin Templeton Appointment 0.05000 29 September 2010 0.04089 Date 0.03854 0.03141 Listing Date 25 January 2011 0.03
Slide 6: Shareholders Structure
FUND INFORMATION 5 Shareholders Structure1 Evolution (% Held) 100% 6% 9% 8% 9% 9% 10% 10% 9% 9% 10% 9% 8% 9% Largest Shareholders2 14% Elliott Associates 14.95% 20% 27% 75% 10% Morgan Stanley3 5.14% 37% 9% 43% 48% 50% 52% 54% 57% 58% 59% 59% Total Number of Shareholders1 8,085 9% 31% 50% 28% 9% 10%
Slide 7: Net Asset Value
FUND INFORMATION 6 Cumulative Performance Third Quarter 2013: 0.83% Net Asset Value Cumulative Performance YTD: 5.45% Cumulative Performance 12-MO: 24.89% NAV (RON) / Share Dividend Dividend 0.03854 0.04089 1.1951 1.1922 1.1572 1.1688 1.1397 1.1477 1.1514 1.1601 1.1782 1.1290 1.1371 1.1507 1.1585 1.
Slide 8: Contributors to NAV Performance for Q3 2013
FUND INFORMATION 7 Contributors to NAV Performance1 for Q3 2013 TOP PERFORMERS % change in NAV performance Change in NAV per share Company Status % in Total NAV² for Q3 2013 vs. Q2 20131 (RON) OMV Petrom SA Listed 32.3 1.92 0.0224 BRD-Groupe Societe Generale Listed 1.5 0.26 0.0030 Conpet SA Listed 0
Slide 9: Contributors to NAV Performance for the 9-month period ended 30 September 2013
FUND INFORMATION 8 Contributors to NAV Performance1 for the 9-month period ended 30 September 2013 TOP PERFORMERS % change in NAV performance for the 9-month period ended 30 Change in NAV per share Company Status % in Total NAV² September 2013 vs. Q4 20121 (RON) OMV Petrom SA Listed 32.3 1.27 0.0148
Slide 10: FP Market Valuation / Performance
FUND INFORMATION 9 FP Market Valuation / Performance NAV vs. Market Capitalization (EUR bn)1 FP Share Price2 (RON) and Discount (%) 0.8000 65% 3 Unlisted 1.82 0.7000 55% 2 Net cash and 0.6000 45% 0.18 receivables 2.44 1 0.5000 35% Listed 1.35 0.4000 25% 0 1/11 4/11 6/11 8/11 11/11 1/12 3/12 5/12 8/1
Slide 11: 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 12: Portfolio Structure – 31 October 2013
PORTFOLIO PERFORMANCE 11 Portfolio Structure – 31 October 2013 Net Cash & Net Cash & Receivables Others Receivables 5% 3% 5% Banks Power Utilities: 3% Generation 21% Infrastructure 3% Unlisted Listed 45% 41% Power & Gas Utilities: Transport, Oil & Gas Distribution & 42% Supply 23% Romgaz 9% • As at
Slide 13: Largest Holdings by NAV
PORTFOLIO PERFORMANCE 12 Largest Holdings by NAV NAV Majority as at 31 October 2013 % in NAV No. Portfolio Company Status Shareholder % Stake1 (EUR mn) as at 31 October 2013 1 OMV Petrom Listed OMV 19.0% 1,080.6 32.2% 2 Hidroelectrica IPO 2014 Romanian State 19.9% 451.6 13.5% 3 Romgaz Listed Romania
Slide 14: Portfolio Structure – SPO & IPO Calendar
PORTFOLIO PERFORMANCE 13 Portfolio Structure – SPO & IPO Calendar Completed Transactions Offering Market Value Company Stake (EUR mn) Seller Investment Consortium Selected Comments BCR, Swiss Capital, Intercapital Transelectrica 15.0% 37.61 Romanian State Completed in March 2012 Invest 21 Raiffeisen
Slide 15: Portfolio Structure – SPO & IPO Calendar
PORTFOLIO PERFORMANCE 14 Portfolio Structure – SPO & IPO Calendar Future IPOs and Privatizations Market Value Company Official Timeline1 Offering Stake (EUR mn) Seller Investment Consortium Selected Comments Citi, Societe Generale, BRD, Intercapital Out of insolvency / IPO Hidroelectrica IPO – June
Slide 16: Potential New Tax on Existing Special Infrastructure Assets
PORTFOLIO PERFORMANCE 15 Potential New Tax on Existing Special Infrastructure Assets According to a draft Government Emergency Ordinance, the Romanian Government plans to introduce a new tax on existing special infrastructure assets, which will apply to a number of companies in the Fund’s portfolio.
Slide 17: 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 18: Buy-Back Program (I)
CORPORATE ACTIONS 17 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 Status: • 322.0 million shares equ
Slide 19: Buy-Back Program (II)
CORPORATE ACTIONS 18 Buy-Back Program (II) Average Daily Turnover in October 2013 (EUR thousands) 2,916 399 270 201 199 181 109 92 FP BRD OMV Petrom SIF Oltenia Transgaz Banca Transilvania Transelectrica SIF Moldova Second Buy-Back Program ADTV (October 2013) 16.6 mn shares / EUR 2.9 mn 25% of ADTV
Slide 20: Secondary Listing on the Warsaw Stock Exchange
CORPORATE ACTIONS 19 Secondary Listing on the Warsaw Stock Exchange • Given the lack of the link between the Polish and Romanian Central Depositories, the Fund Manager will not request from shareholders a further extension of the authorization for the secondary listing of the Fund on the WSE. The cu
Slide 21: Dividend Income – Top 20 Portfolio Companies
CORPORATE ACTIONS 20 Dividend Income – Top 20 Portfolio Companies PROFIT DIVIDEND PAYOUT % FP NET DIVIDEND Top 20 Holdings1 2012 2011 2010 2012 2011 20138 2012 2011 1 OMV Petrom SA2 3,946.1 3,758.6 2,189.7 40 47 319.0 353.1 201.6 2 Hidroelectrica SA (508.0) 6.5 292.3 — — — — 52.5 3 Romgaz SA 1,244.1
Slide 22: Investor Relations / Upcoming Events
CORPORATE ACTIONS 21 Investor Relations / Upcoming Events Date Event 20 – 22 November 2013 Fall 2013 Analyst and Investor Days, Bucharest 22 November 2013 General Shareholders’ Meeting 2 December 2013 Annual CEE Conference, New York 3 – 6 December 2013 Wood’s Winter in Prague – Emerging Europe Confe
Slide 23: Agenda of the EGM and OGM – 22 November 2013
CORPORATE ACTIONS 22 Agenda of the EGM and OGM – 22 November 2013 • Return of capital: Approval of the decrease of the subscribed share capital of the Fund from RON 13,538,087,407 to RON 12,861,183,036.65 through the reduction of the nominal value of the shares from RON 1.00/share to RON 0.95/share
Slide 24: Fondul Proprietatea – Fall 2013 Analyst and Investor Days
CORPORATE ACTIONS 23 Fondul Proprietatea – Fall 2013 Analyst and Investor Days Bucharest / Medias Wednesday, 20 November 2013 07:45 a.m. Pick-up from Radisson Blu Hotel and transfer to Otopeni Airport 09:30 a.m. Flight to Sibiu 10:20 am Arrival in Sibiu 10:30 a.m. Transfer from Sibiu Airport to Romg
Slide 25: Fondul Proprietatea – Fall 2013 Analyst and Investor Days
CORPORATE ACTIONS 24 Fondul Proprietatea – Fall 2013 Analyst and Investor Days Bucharest Thursday, 21 November 2013 Radisson Blu Hotel (Atlas room) 8:00 – 9:00 a.m. Registration and Breakfast Welcome – Dr. Mark Mobius (Executive Chairman, Templeton Emerging Markets Group) and 9:00 – 9:10 am Grzegorz
Slide 26: Fondul Proprietatea – Fall 2013 Analyst and Investor Days
CORPORATE ACTIONS 25 Fondul Proprietatea – Fall 2013 Analyst and Investor Days Bucharest Thursday, 21 November 2013 Radisson Blu Hotel (Atlas room) National Regulatory Authority for Energy 12:40 – 1:00 p.m Niculae Havrilet, President 1:00 – 2:00 p.m. Lunch Fondul Proprietatea – Presentation and Q&A
Slide 27: Fondul Proprietatea – Fall 2013 Analyst and Investor Days
CORPORATE ACTIONS 26 Fondul Proprietatea – Fall 2013 Analyst and Investor Days Bucharest OPTIONAL (Friday, 22 November 2013 Radisson Blu Hotel) 9:00 – 2:00 p.m. One-on-one meetings with portfolio companies 1:00 – 2:00 p.m. Lunch 2:00 p.m. Departure to OMV PETROM Refinery and Power-Plant in Ploiesti
Slide 28: Q3 2013 Results
Q3 2013 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
Q3 2013 RESULTS 28 Income Statement 9 month period ended 9 month period ended Q3 2012 30 September 2012 Q3 2012 30 September 2013 RON mn (Unaudited) (Unaudited) (Unaudited) (Unaudited) Revenues from current activity, out of which: 13.5 861.3 49.8 924.6 • Revenues from financial assets 0.9 619.0 15.0
Slide 30: Balance Sheet
Q3 2013 RESULTS 29 Balance Sheet 31 December 2012 30 June 2013 30 September 2013 RON mn (Audited) (Unaudited) (Unaudited) Intangible assets 0.3 0.8 0.8 Financial assets 11,097.8 10,675.1 10,688.7 Non-current assets - total 11,098.1 10,675.9 10,689.5 Current assets - total 776.5 1,390.5 860.6 Prepaid
Slide 31: Appendix I – Update on Top Holdings
Appendix I – Update on Top 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 – Selected Financial Information
APPENDIX I 31 OMV Petrom – Selected Financial Information 2011 2012 30.09.2013 30.09.2013 RON mn (Audited) (Audited) (Non-Audited) (Non-Audited) Tangible assets 26,334.28 28,512.59 28,101.63 29,675.30 Non-current assets - Total 31,021.51 32,776.65 32,412.50 33,658.78 Current assets - Total 36,488.44
Slide 33: Hidroelectrica – Selected Financial Information
APPENDIX I 32 Hidroelectrica – Selected Financial Information 2011 2012 30.09.2012 30.09.2013 RON mn (Audited) (Audited) (Non-Audited) (Non-Audited) Tangible assets 20,272.68 19,848.03 20,017.37 19,257.43 Non-current assets - Total 20,339.08 19,913.70 20,082.17 19,321.10 Current assets - Total 611.8
Slide 34: Romgaz – Selected Financial Information
APPENDIX I 33 Romgaz – Selected Financial Information 2011 2012 30.09.2013 RON mn (Audited) (Audited) (Non-Audited) Tangible assets 6,092.07 5,624.94 5,711.60 Non-current assets - Total 6,232.97 5,887.65 6,263.10 Current assets - Total 4,692.13 5,154.85 3,911.39 Advance payments 2.82 1.93 7.78 Short
Slide 35: CE Oltenia – Selected Financial Information
APPENDIX I 34 CE Oltenia – Selected Financial Information 2012¹ 30.09.2013 RON mn (Audited) (Non-Audited) Tangible assets 6,832.38 6,771.85 Non-current assets - Total 6,859.13 6,795.95 Current assets - Total 1,433.83 1,506.15 Advance payments 47.82 38.80 Short term liabilities 883.90 813.61 Long ter
Slide 36: GDF Suez Energy Romania – Selected Financial Information
APPENDIX I 35 GDF Suez Energy Romania – Selected Financial Information 2011 2012 30.06.2012 30.06.2013 RON mn (Audited) (Audited) (Non-Audited) (Non-Audited) Tangible assets 2,597.26 2,918.68 2,918.68 2,993.48 Non-current assets - Total 2,764.89 3,121.06 3,121.06 3,206.39 Current assets - Total 1,38
Slide 37: Transgaz – Selected Financial Information
APPENDIX I 36 Transgaz – Selected Financial Information 2011 2012 30.09.2013 RON mn (Audited) (Audited) (Non-Audited) Tangible assets 760.87 742.43 712.07 Non-current assets - Total 3,284.46 3,343.58 3,236.65 Current assets - Total 688.17 562.25 3,780.49 Short term liabilities 372.56 355.30 306.77 L
Slide 38: Nuclearelectrica – Selected Financial Information
APPENDIX I 37 Nuclearelectrica – Selected Financial Information 2011 2012 30.09.2013 RON mn (Audited) (Audited) (Non-Audited) Tangible assets 7,511.01 7,370.35 7,187.59 Non-current assets - Total 9,191.44 9,124.30 8,942.95 Current assets - Total 1,310.76 1,465.18 1,955.69 Advance payments 6.20 7.87
Slide 39: Appendix II – Update on Gas and Electricity Liberalization Program
Appendix II – Update on Gas and Electricity Liberalization Program This material is intended solely for the recipient and should not be reproduced, copied or re-transmitted. Not for public use.
Slide 40: Gas Price Liberalization
APPENDIX II 39 Gas Price Liberalization Industrial consumers Household consumers 180% 180% 150% 150% 120% 120% 90% 90% 60% 60% 30% 30% 0% 0% 1/13 6/13 11/13 4/14 9/14 2/15 7/15 12/15 5/16 10/16 3/17 8/17 1/18 6/18 1/13 6/13 11/13 4/14 9/14 2/15 7/15 12/15 5/16 10/16 3/17 8/17 1/18 6/18 Local product
Slide 41: Calendar of the Gradual Elimination of the Regulated Gas Prices
APPENDIX II 40 Calendar of the Gradual Elimination of the Regulated Gas Prices Non-household consumers Starting date Internal production price Convergence degree % Final price growth (RON/MWh) 01.12.2012 35 49.0 5 01.04.2013 40 55.3 5 01.07.2013 47 63.4 5 01.10.2013 51 68.3 3 Annual growth of the fi
Slide 42: Calendar of the Gradual Elimination of the Regulated Gas Prices
APPENDIX II 41 Calendar of the Gradual Elimination of the Regulated Gas Prices Household consumers Starting date Internal production price Convergence degree % Final price growth (RON/MWh) 01.12.2012 3 45.7 0 01.04.2013 33 45.7 0 01.07.2013 36 48.5 8 01.10.2013 37 49.8 2 Annual growth of the final 1
Slide 43: Calendar of the Gradual Elimination of the Regulated Gas Prices
APPENDIX II 42 Calendar of the Gradual Elimination of the Regulated Gas Prices Household consumers Starting date Internal production price Convergence degree % Final price growth (RON/MWh) 01.01.2016 56 67.1 3 01.04.2016 60 71.7 3 01.07.2016 64 76.5 3 01.10.2016 66 78.5 3 Annual growth of the final
Slide 44: Calendar of the Gradual Elimination of the Regulated Electricity Prices
APPENDIX II 43 Calendar of the Gradual Elimination of the Regulated Electricity Prices Non-household consumers – Household consumers – Starting date % acquisition from the competitive market % acquisition from the competitive market 01.09.2012 15 - 01.01.2013 30 0 01.04.2013 45 0 01.07.2013 65 10 01
Slide 45: Electricity Prices
APPENDIX II 44 Electricity Prices 2011 – 2014 OPCOM Prices (RON/MWh)¹ 220 195 170 145 1/11 5/11 9/11 1/12 5/12 9/12 1/13 5/13 9/13 1/14 5/14 9/14 PCCB Delivery Price RON / MWh For comparison, in Germany, electricity prices are RON 183.3/MWh for October 2014 delivery² 1. Market Price – PCCB delivery
Slide 46: Energy on the Regulated Market 2012 – 2013
APPENDIX II 45 Energy on the Regulated Market 2012 – 2013 2012 Quantity 2013 Quantity 2012 Average Price 2013 Average Price Producer (TWh) % Total Market (TWh) (RON/MWh) (RON/MWh) Nuclearelectrica SA 7.5 13.2 5.3 123 142 Hidroelectrica SA 4.1 7.2 3.9 72 125 CE Oltenia SA 3.5 6.2 2.5 183 190 OMV Petr
Slide 47: 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