S.C. Fondul Proprietatea SA · BVB:FP
S.C. Fondul Proprietatea SA — Fondul Proprietatea — Q1 2017 Earnings Presentation
32 slides from S.C. Fondul Proprietatea SA's earnings presentation, May 15, 2017
Slide 1: Fondul Proprietatea Q1 2017 Results Conference Call
15 May 2017 Fondul Proprietatea Q1 2017 Results Conference Call This material is intended solely for the recipient and should not be reproduced, copied or re-transmitted. Not for public use.
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: Disclaimer
Disclaimer 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 investments a
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
The Fund – Key Facts Fund Details1 RON USD2 FP Share Price4 and Discount (%) NAV 10.82 bn 2.61 bn2 0.8500 66% NAV/Share 1.2159 0.29332 Price/Share 0.9000 0.21712 0.6500 49% Price/GDR 45.81 11.05 Market Capitalization as at 12 May 20173 7.99 bn 1.91 bn3 Discount/Share as at 12 May 2017 0.4500 32% 24.
Slide 6: Shareholders Structure
FONDUL PROPRIETATEA 5 Shareholders Structure Evolution (% Held) 2% 2% 2% 3% 2% 3% Largest Shareholders1 100% 6% 10% 10% 9% 10% 8% 8% 8% 8% 9% 9% 13% 13% 13% 14% Elliott Associates 21.06% 14% 9% 11% 12% 12% 14% 14% 15% 15% City of London 5.04% 75% 10% Investment Mgmt. 43% 33% 34% 35% 34% 54% 27% NN G
Slide 7: NAV, Share Price and GDR Performance
NAV, Share Price and GDR Performance Cumulative Performance Since 2011 2012 2013 2014 2015 2016 Q1 2017 YTD1 Performance Inception1 NAV (RON) (0.47)% 8.91% 13.29% 1.39% (0.60)% 7.33% 4.88% 6.78% 41.85% Ordinary Share Price (30.32)% 38.30% 61.34% 14.53% (4.06)% 4.90% 18.07% 19.66% 114.46% (RON) GDR (
Slide 8: Attribution to NAV Performance for Q1 2017
Attribution to NAV Performance for Q1 2017 TOP PERFORMERS Change in share Total effect for Company Status Weight in total NAV1 price/NAV value per Q1 2017 share in Q1 2017 OMV Petrom SA Listed 20.1% 15.9% 2.58% Nuclearelectrica SA Listed 1.7% 39.4% 0.45% Alro SA Listed 1.0% 23.9% 0.18% Conpet SA Lis
Slide 9: Portfolio
Portfolio This material is intended solely for the recipient and should not be reproduced, copied or re-transmitted. Not for public use
Slide 10: Portfolio Structure
FONDUL PROPRIETATEA 9 Portfolio Structure Listed vs Unlisted By Sector By Controlling Ownership as as at 28 April 2017 (% NAV)1 as at 28 April 2017 (% NAV)1 at 31 March 20172 3% 3% Electricity & Gas: 2% Distribution & Supply Unlisted Electricity: Generation 2% State 10% Controlled 2% 27% Entities Oi
Slide 11: Portfolio Structure – Listed vs. Unlisted
FONDUL PROPRIETATEA 10 Portfolio Structure – Listed vs. Unlisted Listed Companies Unlisted Companies (% of NAV as at 31 March 2017) (% of NAV as at 31 March 2017) 0.55% 0.64% OMV Petrom 1.69% 0.91% 0.99% 2.02% Hidroelectrica BRD GSG ENEL companies 1.72% 4.24% Electrica companies Nuclearelectrica 7.1
Slide 12: Largest Holdings by NAV
Largest Holdings by NAV NAV Majority % in NAV 1 as at 28 April Portfolio Company Status % Stake as at 28 April Shareholder 2017 2017 (USD mn) Hidroelectrica SA Unlisted Romanian State 19.9% 816.35 31.27 OMV Petrom SA Listed OMV 12.6% 552.88 21.18 CN Aeroporturi Bucuresti Unlisted Romanian State 20.0
Slide 13: Portfolio Holdings – Q1 2017 Results
Portfolio Holdings – Q1 2017 Results EBITDA (mn RON) Net Profit (mn RON) Q1 2016 Q1 2017 Q1 2016 Q1 2017 Hidroelectrica 505.0 638.0 293.8 393.9 OMV Petrom 1,176.0 1,590.0 288.2 518.1 BRD Groupe Societe Generale - - 72.9 329.9 Nuclearelectrica 195.0 230.4 66.9 84.1 Alro 43.1 126.3 27.3 77.7 Conpet 32
Slide 14: Hidroelectrica – Update
FONDUL PROPRIETATEA 13 Hidroelectrica – Update • Corporate Governance: In the shareholders’ meeting held on 19 April 2017, the Government approved the Pre-tax cumulated profit (RON mn) appointment of an interim Board with a mandate of 4 months. The Government is planning to complete a new 1,510 sele
Slide 15: OMV Petrom – Update
APPENDIX I 14 OMV Petrom – Update OMV Petrom - Share Price Performance % in USD1 OMV Petrom - Average Daily Trading Value (USD)2 FP Announcement of the SPO and LSE listing 6 MO prior SPO 0.24 mn 175 6 MO after SPO 0.84 mn MSCI EM Status – Size and Liquidity Requirements3 140 Number of Companies requ
Slide 16: C.N. Aeroporturi Bucuresti – Update
APPENDIX I 15 C.N. Aeroporturi Bucuresti – Update 2016 Financial Performance1 2011 2012 2013 2014 2015 % y/y Preliminary Operating revenues (mn RON) 501.5 555.5 582.6 672.1 755.6 885.7 17% Operating profit (mn RON) 88.5 80.9 94.0 124.4 213.5 277.3 30% Net Income (mn RON) 52.6 53.1 72.0 98.8 178.8 22
Slide 17: Top 20 Portfolio Holdings – Key Financials
Top 20 Portfolio Holdings – Key Financials EBITDA (RON mn) Net Profit (RON mn) Top 20 Holdings1 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 Hidroelectrica SA 707.3 2,008.3 2,189.3 2,100.2 2,166.06 (508.0) 718.8 941.5 899.4 1,268.06 OMV Petrom SA 8,270.2 9,313.0 8,145.0 6,231.1 4,641.8 3,946.1
Slide 18: State Controlled Companies – Key Financials
State Controlled Companies – Key Financials EBITDA (RON mn) Net Profit (RON mn) Company 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 Hidroelectrica SA1 707.32 2,008.3 2,189.3 2,100.2 2,166.09 (508.0) 719.0 941.5 899.4 1,268.09 CN Aeroporturi Bucuresti SA 205.0 235.3 257.5 331.7 N/A 53.1 69.0 98
Slide 19: Key Events with Impact on the Fund’s Portfolio
Key Events with Impact on the Fund’s Portfolio Annual Dividends The new Government passed a memorandum to request the SOEs to pay out a minimum of 90% of and Special the 2016 profits. Distributions from In addition, the new Government passed an Emergency Ordinance in March 2017, allowing the SOEs co
Slide 20: 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 21: Distributions to Shareholders
CORPORATE ACTIONS 20 Distributions to Shareholders Annual Distributions to Shareholders (mn RON) 1,124.3 552.7 507.7 1,499.0 1,778.5 923.6 1,190.8 1,595.0 2000 20.00% 19.5% 17.5% 18.3% 15.5% 1500 15.00% 583.1 1,177.2 10.5% 1000 962.6 86.3 10.00% 8.1% 484.4 389.3 7.5% 189.5 1,124.3 500 120.0 925.6 5.
Slide 22: 2017 Cash Distributions
FUND INFORMATION 21 2017 Cash Distributions Cash Distributions to Shareholders (RON) Cash Distribution Status Payment Date Ex-Date Per Share Special Distribution – Paid 27 March 2017 6 March 2017 RON 0.05 Return of Capital Approved by shareholders Annual Distribution 30 June 20171 9 June 2017 RON 0.
Slide 23: 2017 Return of Capital
2017 Return of Capital • The 2017 Annual Return of Capital of RON 0.05 per share was approved by the Fund’s shareholders on 28 February 2017 • If all legal requirements are fulfilled, the payment will be made to the Fund’s shareholders registered as such at the Registration Date (12 June 2017), prop
Slide 24: Buy-Back Programs
Buy – Back Programs No. of shares to Average be repurchased / Cancellation of Program Period Status share price Broker % of the Fund’s issued shares (RON/share) share capital Sep 2015 – Wood & Co., Sixth Finalized 891.8 mn/8.13% 0.8208 Finalized Sep 2016 Goldman Sachs Int. Partial cancellation Start
Slide 25: Fondul Proprietatea Tender Offers
Fondul Proprietatea Tender Offers FP pre- Premium to pre- Discount of offer Announcement Tender price announcement Allocation ratio Tender Offer announcement price to NAV date (RON/share) share price (%) share price (%) (%)1 (RON/share) First 10 October 2013 1.00 0.7770 28.70% 15.12% 5.70% Second 20
Slide 26: Dividend Income – Top 20 Portfolio Companies (I)
Dividend Income – Top 20 Portfolio Companies (I) DIVIDEND PAYOUT (%) FP NET DIVIDEND (RON mn) Top 20 Holdings1 2011 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2017 Hidroelectrica SA - - - 80 80 N/A - - - 128.9 134.6 134.65 OMV Petrom SA 47 40 36 35 - 94 353.1 319.0 331.4 120.5 - 106.8 CN Aero
Slide 27: Dividend Income – Top 20 Portfolio Companies (II)
Dividend Income – Top 20 Portfolio Companies (II) DIVIDEND PAYOUT (%) FP NET DIVIDEND (RON mn) Top 20 Holdings1 2011 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2017 Enel Energie SA - - - 50 50 - - - - 7.4 2.1 - Enel Energie Muntenia SA - - - - - - - - - - - - Conpet SA 90 85 85 100 100 92 6.6
Slide 28: Investor Relations – Upcoming Events
CORPORATE ACTIONS 27 Investor Relations – Upcoming Events FP Analyst and Investor Days Bucharest 6-8 FP H1 2017 Results Sep Conference Call 14 Berenberg Romania Day August London US Road-Show Boston, Chicago, New York 18 May 10 –14 July More information about the Fund can be found on the website www
Slide 29: Q1 2017 Results
Q1 2017 Results This material is intended solely for the recipient and should not be reproduced, copied or re-transmitted. Not for public use.
Slide 30: Statement of Financial Position
Statement of Financial Position 31 March 2017 31 December 2016 RON million Unaudited Audited Cash and current accounts 36.2 5.8 Deposits with banks 155.3 305.3 Treasury bills 69.8 781.4 Government bonds 79.2 328.6 Equity investments 10,369.0 9,992.2 Other assets 11.2 20.8 Total assets 10,720.7 11,43
Slide 31: Statement of Comprehensive Income
Statement of Comprehensive Income 31 March 2017 31 March 2016 RON million Unaudited Unaudited Net unrealised profit / (loss) from equity investments at fair value through profit or loss 296.1 (535.9) Reversal of impairment losses / (Impairment losses) on receivables, net 18.5 (0.4) Interest income 6
Slide 32: Fondul Proprietatea contact details
Fondul Proprietatea Premium Point Buzesti Street 78-80, 1st District Bucharest 011017 www.fondulproprietatea.ro This material is intended solely for the recipient and should not be reproduced, copied or re-transmitted. Not for public use.