S.C. Fondul Proprietatea SA · BVB:FP
S.C. Fondul Proprietatea SA — Fondul Proprietatea — FY2011 Earnings Presentation
35 slides from S.C. Fondul Proprietatea SA's earnings presentation, Feb 15, 2012
Slide 1: 2011 Preliminary Annual Results Presentation
15 February 2012 Fondul Proprietatea 2011 Preliminary Annual Results Presentation 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 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: Romania Macroeconomic Update
Romania Macroeconomic Update This material is intended solely for the recipient and should not be reproduced, copied or re-transmitted. Not intended for public use.
Slide 4: Romania–Macroeconomic Update
MACROECONOMIC OVERVIEW 3 Romania–Macroeconomic Update Quarterly GDP Growth (2009–2011) Inflation vs. Key Interest Rate (%) Q2 '09 Q3 '09 Q4 '09 Q1 '10 Q2 '10 Q3 '10 Q4 '10 Q1 '11 Q2 '11 Q3 '11 Q4 '11 10% 10% 4.4% 5% 8% 1.9% 1.7% 1.4% 0% 6% -0.4% 5.5% -0.6% -2.2% -2.2% 4% -5% -7.1% -6.5% 2.7% -10% -8
Slide 5: Romania–Solid Fundamentals
MACROECONOMIC OVERVIEW 4 Romania–Solid Fundamentals Retail Sales Index 2010–2011 Monthly Unemployment 2009–2011 (%) 1/10 4/10 7/10 10/10 1/11 4/11 7/11 10/11 8 7.7 7.5 7.4 7.4 7.5 7.4 7.3 7.5 7.3 7.3 7.5 7.5 7.2 7.2 7.3 7.27.2 7.2 7.3 7.3 7.1 7.1 4 7 7.0 6.9 7.0 0 -4 6 -8 -12 5 12/09 3/10 6/10 9/10
Slide 6: Romania–Banking Sector
MACROECONOMIC OVERVIEW 5 Romania–Banking Sector LTD Rates Private credit growth (Nov. 2010 – Nov. 2011) 300% 272% 15% 14% 200% 10% 126% 8% 8% 111% 117% 118% 111% 7% 6% 100% 5% 2% 0% 1% Erste RBI OTP 0% LTD (Romania), 9M 11 LTD (Group), 9M 11 Hungary Poland Czech Bulgaria Slovakia Romania Croatia Sou
Slide 7: Energy Sector Trends
Energy Sector Trends This material is intended solely for the recipient and should not be reproduced, copied or re-transmitted. Not intended for public use.
Slide 8: Electricity Production 2011
ENERGY SECTOR TRENDS 7 Electricity Production 2011 • 2.1% YoY increase in electricity production from 6.05 Twh in 2010 to 6.18 Twh in 2011 • 4% YoY increase in electricity consumption, due to a 7.3% decrease in public lighting and a 3.4% increase in household consumption • The electricity imports re
Slide 9: Fund Information
Fund Information This material is intended solely for the recipient and should not be reproduced, copied or re-transmitted. Not intended for public use.
Slide 10: The Fund – Key Facts
2011 PRELIMINARY ANNUAL RESULTS 9 The Fund – Key Facts Fund Details as of 31 January 2012 Dividends Paid RON EUR* Base Currency RON 2006 0.0025 0.0070 Fund Launch Date 28 December 2005 2007 0.0066 0.0018 2008 – – Franklin Templeton 29 September 2010 Appointment Date 2009 0.0816** 0.0193 Listing Date
Slide 11: Shareholders Structure
2011 PRELIMINARY ANNUAL RESULTS 10 Shareholders Structure Shareholders Structure* (% Held) Evolution 100% 7% 7% 9% Top Shareholders* 10% 10% 11% 11% 11% 11% Elliott 24% 27% 12.92% 75% 31% Associates** 35% 37% 39% 9% 41% 43% 46% Percentage Held City of London 9% Investment 7.21% 9% 50% 10% 9% Managem
Slide 12: FTIML – Key Milestones
2011 PRELIMINARY ANNUAL RESULTS 11 FTIML – Key Milestones 6/11 11/11 11/10 3/11 RON 432 million dividend 8/11 GSM approval to Obtain CNVM approval for NAV Selection of Wood & Co. to distribution for 2010 European Depositary change eliminate voting calculation applying fair value execute buy-back pro
Slide 13: Net Asset Value
2011 PRELIMINARY ANNUAL RESULTS 12 Net Asset Value NAV (RON) / Share Cumulative Performance Since December 2010: +4.15% as at 31 January 2012 Dividend 1.2500 0.03141 1.1942 1.1919 1.1692 1.1754 1.1625 1.1352 1.2004 1.1450 1.1290 1.1500 1.1124 1.1147 1.0902 1.0742 1.0788 1.0500 0.9500 0.8500 Dec Jan
Slide 14: Portfolio Management
Portfolio Management This material is intended solely for the recipient and should not be reproduced, copied or re-transmitted. Not intended for public use.
Slide 15: Portfolio Structure (I)
2011 PRELIMINARY ANNUAL RESULTS 14 Portfolio Structure (I) • As at 31 January 2012, the portfolio was heavily weighted towards the electricity, oil and gas sectors (approx. 86% of the NAV), offering unique exposure to the energy sector • 12-month period ended 31 December 2011 acquisitions: – Added s
Slide 16: Portfolio Structure (II)
2011 PRELIMINARY ANNUAL RESULTS 15 Portfolio Structure (II) • As at 31 December 2010, FP’s portfolio included stakes in 83 companies (28 listed and 55 unlisted), both privately held and State-owned, ranging from less than 1% up to 100% • As at 31 January 2012, the portfolio includes stakes in 73 com
Slide 17: Largest Holdings
2011 PRELIMINARY ANNUAL RESULTS 16 Largest Holdings NAV EUR % in Total No. Portfolio Company Status % Stake Majority Shareholder mn NAV 1 OMV Petrom Listed–SPO 2012 20% OMV 886.5 25.4% 2 Hidroelectrica IPO 2012 20% Romanian State 769.1 22.1% 3 Romgaz IPO 2012 15% Romanian State 280.9 8.1% 4 CE Turce
Slide 18: Top Portfolio Holdings–Dividends
2011 PRELIMINARY ANNUAL RESULTS 17 Top 20 Portfolio Holdings–Dividends Dividend 2011 FP Net 2010 FP Net FP Board Top 20 Holdings 2010 Profit Payout % Dividend Dividend Representative 1 Hidroelectrica 292.40 90% 52.5 6.5 Yes 2 OMV Petrom 2,190.00 46% 201.5 – Yes 3 Romgaz 651.20 110% 106.0 87.8 Yes 4
Slide 19: Active Portfolio Management
2011 PRELIMINARY ANNUAL RESULTS 18 Active Portfolio Management Unlocking the Underlying Value of the Fund • Representation on the Boards of Directors in 19 portfolio companies, and nomination of 15 independent directors in companies, which together represent a total of over 75% of the Fund’s NAV • L
Slide 20: Measures Agreed with IMF
2011 PRELIMINARY ANNUAL RESULTS 19 Measures Agreed with IMF Reforming State-Owned Enterprises Measures with Impact on the Energy Sector • Improve corporate governance legislation for SOEs: • Approve by mid-January a government memorandum, a roadmap to phase out regulated gas and electricity prices –
Slide 21: Corporate Governance Code for SOEs
2011 PRELIMINARY ANNUAL RESULTS 20 Corporate Governance Code for SOEs Main Provisions of the Corporate Governance Code • The Romanian Government approved on 30 November 2011 an Emergency Government Ordinance 109/2011 regarding the corporate governance of State Owned Enterprises with the following pr
Slide 22: Future Developments
Future Developments This material is intended solely for the recipient and should not be reproduced, copied or re-transmitted. Not intended for public use.
Slide 23: Secondary Listing: WSE Recommendation
2011 PRELIMINARY ANNUAL RESULTS 22 Secondary Listing: WSE Recommendation Update: • On 8 February 2012, the Fund Manager received a request from shareholders to call a General Shareholders Meeting to – Approve in principle the secondary listing of the Fund on the Warsaw Stock Exchange – Approve an in
Slide 24: 2011–2012 SPO & IPO Timeline
2011 PRELIMINARY ANNUAL RESULTS 23 2011–2012 SPO & IPO Timeline • After the expected IPOs, the weight of listed holdings will increase from 36% of NAV as at 31 January 2012 to 69% of NAV • Law 247 / 2005 specified that all state-owned companies in the Fund’s portfolio must be listed by the end of 20
Slide 25: Listing of all State-Owned Enterprises in the FP Portfolio
MAJOR DEVELOPMENTS 24 Listing of all State-Owned Enterprises in the FP Portfolio • Law 302 / 2011, published on 9 January 2012, specifies listing procedures of the state-owned companies in the Fund’s portfolio must be initiated by the end of 2012 • New deadline was proposed by Fondul Proprietatea an
Slide 26: FP Market Performance
2011 PRELIMINARY ANNUAL RESULTS 25 FP Market Performance NAV vs. Market Capitalisation (EUR bn)* FP Share Price** 0.65 4 0.6 3 2.11 0.55 2 0.5 0.11 1 1.67 0.45 1.27 0 0.4 11 11 11 11 1 1 1 1 1 1 1 1 1 1 2 2 /1 /1 /1 /1 /1 /1 /1 /1 /1 /1 /1 /1 2/ 7/ 1/ 6/ 25 19 16 10 05 30 24 19 13 07 10 04 /0 /2 /2
Slide 27: Preliminary Results
2011 Preliminary Results This material is intended solely for the recipient and should not be reproduced, copied or re-transmitted. Not intended for public use.
Slide 28: Income Statement
2011 PRELIMINARY ANNUAL RESULTS 27 Income Statement (Million RON Audited) 2010 2011 Revenues from Current Activity, Out of Which: 576.6 617.9 Revenues from Financial Assets 179.0 519.1 Interest Income 131.5 41.1 Reversal of Impairment Adjustments & Provisions 217.4 30.5 Revenues from Disposal of Fin
Slide 29: Balance Sheet
2011 PRELIMINARY ANNUAL RESULTS 28 Balance Sheet 31 December 2010 31 December 2011 (Million RON) Audited Audited Financial Assets 10,890.5 10,627.9 Non-Current Assets–Total 10,890.5 10,627.9 Current Assets–Total 1,332.4 549.2 Payables Within One Year 69.3 42.2 Total Assets Less Current Liabilities 1
Slide 30: 2012 Upcoming Events
2012 Upcoming Events This material is intended solely for the recipient and should not be reproduced, copied or re-transmitted. Not intended for public use.
Slide 31: 2012 Upcoming Events
2012 UPCOMING EVENTS 30 2012 Upcoming Events Date Event Fondul Proprietatea at the Unicredit Emerging Europe 15-16 March 2012 Conference in New York City by 8 April 2012 General Shareholders Meeting 11-14 April 2012 Fondul Proprietatea at the Zurs Investor Conference 23-24 April 2012 Fondul Propriet
Slide 32: General Shareholders Meeting – by April 2012
2012 UPCOMING EVENTS 31 General Shareholders Meeting – by 8 April 2012 On 8 February 2012, the Fund Manager received a request from Georgia Palade van Dusen, Philipe Palade, Grantelast Limited and POAH One Acquisition Holdings IV Limited, to call a General Shareholders’ Meeting with the following po
Slide 33: Board of Nominees – Current Structure Since 27 April 2011
FUND INFORMATION 32 Board of Nominees – Current Structure Since 27 April 2011 Current Members Position Current Position Recommended By Comments Bogdan – Minister of Public Ministry of Public Resigned on 10 Chairman Alexandru Dragoi Finance Finance February 2012 Sorin- Mihai Managing Director, Chairm
Slide 34: Thank you!
Thank you! This material is intended solely for the recipient and should not be reproduced, copied or re-transmitted. Not intended for public use.
Slide 35: Q&A
Q&A This material is intended solely for the recipient and should not be reproduced, copied or re-transmitted. Not intended for public use.