S.C. Fondul Proprietatea SA · BVB:FP
S.C. Fondul Proprietatea SA — Fondul Proprietatea — FY2014 Earnings Presentation
37 slides from S.C. Fondul Proprietatea SA's earnings presentation, February 2015
Slide 1: 2014 Preliminary Annual Results Conference Call
Fondul Proprietatea 2014 Preliminary Annual Results Conference Call 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 p
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
2014 PRELIMINARY ANNUAL RESULTS CONFERENCE CALL 3 The Fund – Key Facts Fund Details as at 30 January 20151 RON EUR FP Share Price6 and NAV NAV 12.81 bn 2.88 bn2 NAV/Share 1.1829 0.26632 1.20 Price/Share3 0.8345 0.1878 Discount3 29.45% 29.45% 0.90 Number of Shares in Issue 12,184,278,667 Number of Pa
Slide 5: Shareholders Structure
2014 PRELIMINARY ANNUAL RESULTS CONFERENCE CALL 4 Shareholders Structure1 Evolution (% Held) Largest Shareholders 100% 2% 6% 2% 2% 2% 2% 2% 2% 2% 3% 4% Elliott Associates1 19.73% 9% 8% 10% 8% 10% 10% 8% 9% 9% 10% 10% 9% 9% 10% 9% 8% 10% 14% 9% 9% 9% 11% 11% 20% 27% Total Number of 75% 10% 8,508 37%
Slide 6: Performance Objectives – NAV
2014 PRELIMINARY ANNUAL RESULTS CONFERENCE CALL 5 Performance Objectives – NAV Objective • The Adjusted NAV1 per share as at 30 June 2015, to be higher than the NAV per share as at 30 September 2013 (RON 1.1610 per share) Monthly Monitoring – 31 January 2015 • The Adjusted NAV as at 31 January 2015
Slide 7: Performance Objectives - Discount
2014 PRELIMINARY ANNUAL RESULTS CONFERENCE CALL 6 Performance Objectives - Discount Objective • The discount between the closing price and the last reported NAV per share to be equal to or lower than 15%, in at least 2/3 of the trading days in the period 1 October 2014 – 30 June 2015 Monthly Monitor
Slide 8: NAV – New Independent Fair Valuations (I)
2014 PRELIMINARY ANNUAL RESULTS CONFERENCE CALL 7 NAV – New Independent Fair Valuations (I) Value in 31 Dec Value in 28 Nov Valuation Method for Impact on Total Impact on NAV / Portfolio Company 2014 NAV 2014 NAV NAV (RON mn) share (RON)1 28 Nov 2014 NAV (RON Million) (RON Million) Hidroelectrica SA
Slide 9: NAV – New Independent Fair Valuations (II)
2014 PRELIMINARY ANNUAL RESULTS CONFERENCE CALL 8 NAV – New Independent Fair Valuations (II) Value in 31 Dec Value in 28 Nov Valuation Method for Impact on Total Impact on NAV / Portfolio Company 2014 NAV 2014 NAV NAV (RON mn) share (RON)1 28 Nov 2014 NAV (RON Million) (RON Million) E.ON Energie Rom
Slide 10: Contributors to NAV Performance for Q4 2014
2014 PRELIMINARY ANNUAL RESULTS CONFERENCE CALL 9 Contributors to NAV Performance for Q4 2014 TOP PERFORMERS % change in NAV performance Change in NAV per share Company Status % in Total NAV1 for Q4 2014 (RON) Hidroelectrica SA Unlisted 16.5% 0.50% 0.0067 Enel Distributie Banat SA2 Unlisted 4.8% 0.4
Slide 11: Contributors to NAV Performance for 2014
2014 PRELIMINARY ANNUAL RESULTS CONFERENCE CALL 10 Contributors to NAV Performance for 2014 TOP PERFORMERS % change in NAV performance Change in NAV per share Company Status % in Total NAV4 for 2014 (RON) Electrica Furnizare SA2 Unlisted 1.0% 0.84% 0.0116 E.ON Energie Romania SA2 Unlisted 1.0% 0.46%
Slide 12: NAV and Share Price Performance
2014 PRELIMINARY ANNUAL RESULTS CONFERENCE CALL 11 NAV and Share Price Performance Cumulative Performance 2011 2012 2013 2014 YTD1 Since Performance Inception1 NAV (0.47)% 8.91% 13.29% 1.39% (2.44)% 21.48% Ordinary Share Price (30.32)% 38.30% 61.34% 14.53% (6.86)% 65.85% Average Annual Discount 2011
Slide 13: 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 14: Portfolio Structure
2014 PRELIMINARY ANNUAL RESULTS CONFERENCE CALL 13 Portfolio Structure Sector - 30 January 2015 Listed vs. Unlisted - 30 January 2015 Controlling Ownership - 31 December 2014 Net Cash & Receivables IPOs since the Net Cash & Net Cash and Banks 3% Others start of FTIML's Receivables Receivables 3% 2%
Slide 15: Largest Holdings by NAV
2014 PRELIMINARY ANNUAL RESULTS CONFERENCE CALL 14 Largest Holdings by NAV Majority NAV % in NAV No. Portfolio Company Status % Stake1 as at 30 January 2015 as at Shareholder (EUR mn) 30 January 2015 1 OMV Petrom SA Listed OMV 19.0% 876.0 30.37 2 Hidroelectrica SA Insolvency Romanian State 19.9% 490
Slide 16: Fondul Proprietatea Equity Transactions in Q4 2014
2014 PRELIMINARY ANNUAL RESULTS CONFERENCE CALL 15 Fondul Proprietatea Equity Transactions in Q4 2014 Completed Transactions Offering Market Value Investment Company Transaction Seller Comments Stake (EUR mn) Consortium Selected Wood & Co and BRD- Groupe Conpet ABO FP 23.60% 22.5 Completed in Novemb
Slide 17: Government SPO & IPO Calendar
2014 PRELIMINARY ANNUAL RESULTS CONFERENCE CALL 16 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 Morgan Stanley, Hidroelectrica IPO – J
Slide 18: Disposal of the Unlisted Power and Gas Distribution Companies
2014 PRELIMINARY ANNUAL RESULTS CONFERENCE CALL 17 Disposal of the Unlisted Power and Gas Distribution Companies Background Company FP Stake NAV EUR mn % NAV • The total value of the holdings is EUR 769.7 mn, or 26.1% of the NAV per the Fund’s 31 Enel Distributie Banat (EDB) 24% 142.9 4.8% December
Slide 19: Top Listed Portfolio Holdings – Key Financials
2014 PRELIMINARY ANNUAL RESULTS CONFERENCE CALL 18 Top Listed Portfolio Holdings – Key Financials Company EBITDA(RON mn) Net Profit (RON mn) 2013 2014 2013 2014 Banca Transilvania SA - - 374.9 448.1 BRD Groupe Societe Generale - - (385.8) 43.2 Conpet SA 66.6 100.5 31.3 50.5 Nuclearelectrica SA 894.1
Slide 20: Hidroelectrica – Update
2014 PRELIMINARY ANNUAL RESULTS CONFERENCE CALL 19 Hidroelectrica – Update Pre-tax profit (RON mn) 1,198 1073 943 902 819 720 • Preliminary 2014 results: pre tax profit of 510 588 841 RON 1.2 billion versus RON 900 million in 763 401 642 683 2013 (+33%). 254 600 179 481 126 72 274 399 • Oppositions
Slide 21: 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 22: Secondary Listing on the LSE – Plan
2014 PRELIMINARY ANNUAL RESULTS CONFERENCE CALL 21 Secondary Listing on the LSE – Plan Trading in London is planned to be achieved via the use of Global Depositary Receipts (“GDRs”) or Depositary Interests (“DIs”) as an alternative. Recent changes in the FSA regulations allow any company listed in R
Slide 23: Top 15 Funds on LSE
2014 PRELIMINARY ANNUAL RESULTS CONFERENCE CALL 22 Top 15 Funds on LSE Premium / Discount to % Listed Portfolio Fund Symbol Listing Currency Total NAV (USD mn) NAV (%) (approximately) Scottish Mortgage INV TR PLC SMT GBP 4,820.2 1.2% 98.0 Alliance Trust PLC ATST GBP 4,795.9 -13.1% 88.0 Foreign & Col
Slide 24: LSE Listing – Discounts / Premiums for LSE and SFM Funds
2014 PRELIMINARY ANNUAL RESULTS CONFERENCE CALL 23 LSE Listing – Discounts / Premiums for LSE and SFM Funds Average % Min % Max % SFM (All) -7.90% -76.63% 18.03% LSE (Top 15 largest) 0.61% -15.98% 29.00% • Fondul Proprietatea’s discount to NAV as at 13 February 2015 was 26.20%. Source: Jefferies, Mo
Slide 25: Cash Distributions to Shareholders
2014 PRELIMINARY ANNUAL RESULTS CONFERENCE CALL 24 Cash Distributions to Shareholders Cash Distributions to Shareholders (RON) Type Financial Year Paid In Gross Distribution per Share Net Distribution per Share1 % Change YoY 2008 – 2009 Dividend 2010 0.08160 0.06854 - (aggregate) Dividend 2010 2011
Slide 26: Buy-Back Programs and Tender Offers in Q4 2014 and Q1 2015
2014 PRELIMINARY ANNUAL RESULTS CONFERENCE CALL 25 Buy-Back Programs and Tender Offers in Q4 2014 and Q1 2015 No. of shares to be repurchased/ Average share Program Period Status Broker Cancellation of shares % of the Fund’s issued share capital price (RON/share) To be proposed on agenda 1 October 2
Slide 27: Buy-Back Programs - Average Daily Trading Value on the BVB
2014 PRELIMINARY ANNUAL RESULTS CONFERENCE CALL 26 Buy-Back Programs - Average Daily Trading Value on the BVB Average Daily Turnover in January 2015 (EUR mn) London GDRs BVB 2.28 0.05 0.92 0.91 0.90 0.05 0.66 0.12 0.57 0.48 0.33 0.10 FP Romgaz BRD Banca OMV Petrom Transelectrica Transgaz Electrica S
Slide 28: Investor Relations – Upcoming Events
2014 PRELIMINARY ANNUAL RESULTS CONFERENCE CALL 27 Investor Relations – Upcoming Events Romania Investor Days in New York New York, US 30-31 Auerbach Grayson/Morgan Stanley March Frontier Markets Conference New York, US 27 Edmond de Rotschild Funds Feb Romania Day in London Conference London, UK Lon
Slide 29: Preliminary Annual Results
Preliminary Annual Results This material is intended solely for the recipient and should not be reproduced, copied or re-transmitted. Not for public use.
Slide 30: Income Statement (RON million)
2014 PRELIMINARY ANNUAL RESULTS CONFERENCE CALL 29 Income Statement (RON million) 2013 Audited 2014 Unaudited Revenues from Current Activity, Out of Which: 1,311.2 1,822.7 Revenues from Financial Assets 649.7 682.1 Interest Income 36.2 20.9 Reversal of Impairment Adjustments & Provisions 48.3 37.0 R
Slide 31: Balance Sheet (RON million)
2014 PRELIMINARY ANNUAL RESULTS CONFERENCE CALL 30 Balance Sheet (RON million) 31 December 2013 31 December 2014 Audited Unaudited Intangible Assets 0.8 0.8 Financial Assets 10,490.6 9,075.2 Non-Current Assets – Total 10,491.4 9,076.0 Current Assets – Total 454.1 319.5 Prepaid Expenses - - Payables
Slide 32: Appendix
Appendix This material is intended solely for the recipient and should not be reproduced, copied or re-transmitted. Not for public use.
Slide 33: Romania Day in London – 5 March 2015
APPENDIX 32 Romania Day in London – 5 March 2015 London Thursday, 5 March 2015 – The May Fair Hotel, Danziger Suite A 8:30 – 9:00 a.m. Registration Welcome Embassy of Romania in the United Kingdom - HE Dr. Ion Jinga, Ambassador of Romania to the United Kingdom 9:00 – 9:10 a.m. Franklin Templeton Inv
Slide 34: Romania Day in London – 5 March 2015 Companies
APPENDIX 33 Romania Day in London – 5 March 2015 Companies Banca Transilvania Nuclearelectrica BRD Groupe Societe Generale OMV Petrom Bucharest Stock Exchange Romgaz Conpet SIF2 Moldova Electrica SIF3 Transilvania Fondul Proprietatea Transelectrica Hidroelectrica Transgaz This material is intended s
Slide 35: Romania Investor Days in New York – 30-31 March 2015
APPENDIX 34 Romania Investor Days in New York – 30- 31 March 2015 New York Monday, 30 March 2015 – New York Palace Hotel 8:30 – 9:00 a.m. Registration and Breakfast 9:00 – 9:10 a.m. Welcome Keynote Speaker 9:10 – 9:35 a.m. Klaus Iohannis, President of Romania (TBC) International Monetary Fund 9:35 –
Slide 36: Romania Investor Days in New York – 31 March 2015
APPENDIX 35 Romania Investor Days in New York – 30- 31 March 2015 New York Tuesday, 31 March 2015 – New York Palace Hotel 8:00 – 9:00 a.m. Registration and Breakfast 9:00 a.m. – 5:00 p.m. One-on-one meetings 12:00 – 13:00 p.m. Lunch Companies Alro Hidroelectrica Banca Transilvania Impact Biofarm Nuc
Slide 37: 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.