S.C. Fondul Proprietatea SA · BVB:FP
S.C. Fondul Proprietatea SA — Fondul Proprietatea — Shareholder Meeting (October 2016)
32 slides from S.C. Fondul Proprietatea SA's shareholder meeting presentation, Oct 11, 2016
Slide 1: Fondul Proprietatea General Shareholders Meeting
11 October 2016 Fondul Proprietatea General Shareholders Meeting Acest material este adresat doar destinatarilor săi şi nu poate fi reprodus, copiat sau retransmis. Acest material nu este de uz public.
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 Acest material este adresat doar destinatarilor săi şi nu poate fi reprodus, copiat sau retransmis. Acest material nu este de uz public.
Slide 4: The Fund – Key Facts
The Fund – Key Facts Fund Details as at 31 August 20161 RON USD NAV 12.04 bn 3.01 bn2 NAV/Share 1.1674 0.29232 Price/Share 0.7940 0.19882 Price/GDR 41.54 10.402 Market Capitalization as at 10 October 20163 7.82 bn 1.93 bn Discount per Share as at 10 October 2016 30.96% Discount per GDR as at 10 Octo
Slide 5: FP Market Valuation
FUND INFORMATION 4 FP Market Valuation NAV vs. Market Capitalization (USD bn)1 3.01 Unlisted 1.85 Net Cash and 0.31 1.93 Receivables 0.85 Listed NAV Market Capitalization2 31 August 2016 10 October 2016 BVB LSE Discount3 30.96% 28.65% Average Daily Turnover (USD) 1.80 mn4 0.88 mn5 1. Source: BVB, FP
Slide 6: FP Performance
FUND INFORMATION 5 FP Performance FP Share Price1 (RON) and Discount (%) 0.8500 66% 0.6500 49% 0.4500 32% 0.2500 15% 1/11 7/11 1/12 7/12 1/13 7/13 1/14 7/14 1/15 7/15 1/16 7/16 Discount Share Price RON 1. Source: BVB, Bloomberg, for the period 25 January 2011 – 10 October 2016. Acest material este a
Slide 7: Portfolio
Portfolio Acest material este adresat doar destinatarilor săi şi nu poate fi reprodus, copiat sau retransmis. Acest material nu este de uz public.
Slide 8: Portfolio Structure
FONDUL PROPRIETATEA 7 Portfolio Structure Listed vs Unlisted By Sector as at 31 August 2016 as at 31 August 2016 3% Electricity & Gas: 3% 7% Distribution & Supply Unlisted Electricity: Generation 11% 11% 24% Oil & Gas Listed Net Cash & Receivables 28% 61% Infrastructure 23% Net Cash & 29% Receivable
Slide 9: Largest Holdings by NAV
Largest Holdings by NAV NAV Majority % in NAV 1 as at 31 August Portfolio Company Status % Stake as at Shareholder 2016 31 August 2016 (USD mn) Hidroelectrica SA Unlisted Romanian State 19.9% 818.37 27.15 OMV Petrom SA Listed OMV 19.0% 689.50 22.87 CN Aeroporturi Bucuresti Unlisted Romanian State 20
Slide 10: Hidroelectrica – Financial Performance
FONDUL PROPRIETATEA 9 Hidroelectrica – Financial Performance Pre-tax cumulated profit (RON mn) • On 21 June 2016 the company exited the insolvency procedure by the decision of the syndic judge. 1,158 1,110 • The company is run by an interim Supervisory Board composed of 7 members, and an interim 902
Slide 11: OMV Petrom – Partial Sale
OMV Petrom – Partial Sale Secondary public offering of both shares and global depositary receipts representing interests in Transaction type the existing shares of the Company ("GDRs") BVB for the ordinary shares Listing venues LSE for GDRs Up to 3,641,100,108 Shares representing 6.43% of the share
Slide 12: OMV Petrom Partial Sale – Arguments
OMV Petrom Partial Sale – Arguments • Large exposure to OMV Petrom (23% of NAV) • Low market liquidity of OMV Petrom shares on the BVB • Cash requirements driven by the IPS • Earlier announcement regarding potential decrease of FP’ holding in OMV Petrom below 15% • Supportive market conditions with
Slide 13: OMV Petrom – Share Price Performance
APPENDIX I 12 OMV Petrom – Share Price Performance USD 100 80 60 40 20 6/14 7/14 9/14 10/14 12/14 2/15 3/15 5/15 7/15 8/15 10/15 12/15 1/16 3/16 5/16 6/16 8/16 9/16 OMV Petrom Brent Oil Emerging Markets Oil and Gas Index MOL OMV Source: Bloomberg, as at 30 September 2016. Acest material este adresat
Slide 14: FP Share Price Evolution vs. Petrom and Romgaz
APPENDIX I 13 FP Share Price Evolution vs. Petrom and Romgaz USD 190 160 130 100 70 1/11 5/11 9/11 1/12 5/12 9/12 1/13 5/13 9/13 1/14 5/14 9/14 1/15 5/15 9/15 1/16 5/16 9/16 FP OMV Petrom Romgaz Source: Bloomberg, as at 30 September 2016. Acest material este adresat doar destinatarilor săi şi nu poa
Slide 15: OMV Petrom – Very Low Liquidity vs. Market Capitalisation
OMV Petrom – Very Low Liquidity vs. Market Capitalisation mn EUR 18.21% 15.52% 12.85% 4.84% 7.93% 1.57% 8.20% 3,104 1,937 2,013 1,751 1,722 809 482 319 301 259 83 64 49 40 FP Banca Romgaz BRD GSG Transgaz OMV Petrom Transelectrica Transilvania Total trading volume YTD 30 Sept 16 Market Capitalisatio
Slide 16: Largest Unlisted Holdings – Changes in NAV
Largest Unlisted Holdings – Changes in NAV Valuation mn RON 3,287 3,269 1,621 1,049 858 841 582 632 322 211 177 60 79 63 Hidroelectrica Enel group Electrica group Bucharest Constanta Ports Salrom CE Oltenia¹ Airports Dec 2010 NAV June 2016 NAV Source: FP Detailed Statement of Investments reports.. 1
Slide 17: Corporate Actions
Corporate Actions Acest material este adresat doar destinatarilor săi şi nu poate fi reprodus, copiat sau retransmis. Acest material nu este de uz public.
Slide 18: Annual Decrease in Total Assets: 3%
Annual Decrease in Total Assets: 3%. 17 Total Distributions Account for almost 50% of December 2010 NAV +5% mn RON Average Annual increase in total assets including cash distributions -3% Average Annual decrease in total assets 7,006 excluding cash distributions 15,328 14,465 14,979 15,014 13,237 12
Slide 19: Positive Evolution of the NAV/Share including Cash Distributions: +28.4%
CORPORATE ACTIONS 18 Positive Evolution of the NAV/Share including Cash Distributions: +28.4% +8.1% RON Average Annual increase of NAV/share including cash distributions 1.5 +0.9% Average Annual increase of NAV/share 0.3424 excluding cash distributions 1 1.2436 1.2125 1.1674 1.1124 1.0788 1.1371 1.1
Slide 20: Shareholder Returns
CORPORATE ACTIONS 19 Shareholder Returns RON 0.3924 +199.6% +134.8% +57.9% +27.6% 0.8060 0.5105 0.4000 Average Price Before BVB listing¹ Average Price in 2011 Current Share Price² Share price Total Gross Cash Distribution Source: BVB. 1. Source: Intercapital Invest January 2011 report, and press art
Slide 21: NAV, Share Price and GDR Performance
NAV, Share Price and GDR Performance Cumulative Performance (RON) Since Performance 2011 2012 2013 2014 2015 H1 2016 YTD1 Inception1 NAV (0.47)% 8.91% 13.29% 1.39% (0.60)% 3.53% 5.60% 30.71% Ordinary Share (30.32)% 38.30% 61.34% 14.53% (4.06)% (4.21)% 4.77% 78.99% Price GDR N/A N/A N/A N/A N/A (3.05
Slide 22: Distributions to Shareholders
Distributions to Shareholders Cash Distributions to Shareholders (RON) Gross Cash Net Cash Net Cash Distribution Financial % Change Paid In Distribution Distribution Per Share if the Fund Year Year on Year Per Share Per Share1 were to pay Dividends 2008-2009 Dividend 2010 0.08160 0.06854 - 0.06854 (
Slide 23: Updated Annual Cash Distribution Policy
FUND INFORMATION 22 Updated Annual Cash Distribution Policy • In the absence of exceptional market conditions or circumstances, and subject to any restrictions under Romanian legal or tax regulations and subject to available funding, the Investment Manager intends to recommend a cash distribution re
Slide 24: Special Cash Distribution
FUND INFORMATION 23 Special Cash Distribution • In accordance with the Investment Policy Statement, the Investment Manager submitted for shareholders’ approval during the GSM to be held on 31 October 2016, the approval of a special distribution of RON 0.05 per share, in addition to the annual cash d
Slide 25: Buy – Back Programs
Buy – Back Programs No. of shares to Average be repurchased / Program Period Status share price Broker Cancellation of shares % of the Fund’s (RON/share) issued share capital Approval on 26 April 2016 of the Wood & Co., cancellation of 179.6 mn shares; Sep 2015 – Sixth Finalized 891.8 mn/8.13% 0.820
Slide 26: Third Tender Offer
Third Tender Offer Value of the Offer 575,000,000 shares (388,559,950 in the form of shares and 186,440,050 in the form of GDRs) Purchase price RON 0.8420 per share and the USD equivalent of RON 42.10 per GDR Subscription period 3 August – 7 September 2016 6,628,754,149 shares, i.e. 1,152.83% of the
Slide 27: 11 October EGM Agenda
FUND INFORMATION 26 11 October EGM Agenda • The approval of the decrease of the subscribed share capital of Fondul Proprietatea S.A. from RON 9,168,314,116.70 to RON 8,562,968,634.10 pursuant to the cancellation of 712,171,156 own shares acquired by Fondul Proprietatea S.A. during the sixth buy-back
Slide 28: Appendix
Appendix Acest material este adresat doar destinatarilor săi şi nu poate fi reprodus, copiat sau retransmis. Acest material nu este de uz public.
Slide 29: OMV Petrom – Current Transaction vs. Privatisation Valuation
OMV Petrom – Current Transaction vs. Privatisation Valuation Petrom mn RON Obs. Valuation at privatisation 8,885.5 Based on total paid for 51% (both existing shares and the capital Dividends paid (2004 – 2015) 9,758.3 increase) sum of actually paid from Cash flow Statement, not Current Market capita
Slide 30: Simulation: Dividend Distribution vs Return of Capital Distribution
Simulation: Dividend Distribution vs Return of Capital Distribution • This is a simulation, and not the Investment Manager proposal, realized in order to show the impact on total equity of distributions through Dividend, or Return on capital • Assumption for distributions: RON 0.05 / share • Total s
Slide 31: Impact of Covering the Accounting Losses
Impact of Covering the Accounting Losses Balance as at 31 December 2015 Value as at Covering of the Shareholders Equity (RON mn) adjusted after covering the 31 December 20151 accounting losses2 accounting losses3 Share capital 10,074,080,746 (2,317,038,572) 7,757,042,174 Fair value reserve on availa
Slide 32: Fondul Proprietatea
Fondul Proprietatea Premium Point Buzesti Street 78-80, 1st District Bucharest 011017 www.fondulproprietatea.ro Acest material este adresat doar destinatarilor săi şi nu poate fi reprodus, copiat sau retransmis. Acest material nu este de uz public.
Fondul Proprietatea — Shareholder Meeting (October 2016) on 6ix