S.C. Fondul Proprietatea SA · BVB:FP
S.C. Fondul Proprietatea SA — Fondul Proprietatea — Q3 2017 Earnings Presentation
30 slides from S.C. Fondul Proprietatea SA's earnings presentation, Nov 15, 2017
Slide 1: Q3 2017 Results Conference Call
Q3 2017 Results Conference Call Fondul Proprietatea 15 November 2017 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: 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
The Fund – Key facts Fund Details1 RON USD2 FP Share Price4 and NAV NAV 10.60 bn 2.68 bn2 NAV/Share 1.2117 0.30652 1.2 Price/Share 0.8450 0.21372 Price/GDR 42.70 10.80 Market Capitalization as at 14 November 20173 7.38 bn 1.86 bn3 0.9 Discount/Share as at 14 November 2017 30.04% Discount/GDR as at 1
Slide 5: Key terms of the new Management agreement
Key terms of the new Management agreement Base Fee per Year Distribution Fees for Duration Cash Distribution Current IMA Current IMA Current IMA 0.60% • 2.00%: Up to and including • 2 years • Discount 15% – 20%, + 0.05%, 31 March 2017 i.e. Base Fee Rate = 0.65% New IMA • 1.50%: 1 April – 30 Septembe
Slide 6: Shareholders structure
Shareholders structure Evolution (% Held) Largest 2% 2% 2% Shareholders1 2% 3% 3% 6% 10% 10% 9% 10% 8% 8% 8% 9% 10% 10% 9% 9% 13% 13% 13% 14% Elliott Associates 14% 9% 11% 12% 14% 14% 15% 12% 15% 16% 16% 19.89% 10% 43% 33% 34% 35% 34% City of London 27% 54% 35% 35% 35% Investment Mgmt. 35% 34% 34% 3
Slide 7: NAV, Share price and GDR performance
NAV, Share price and GDR performance Cumulative Performance Since Performance 2011 2012 2013 2014 2015 2016 Q3 2017 9-MO 2017 YTD1 Inception1 NAV (RON) (0.47)% 8.91% 13.29% 1.39% (0.60)% 7.33% 1.05% 10.38% 10.74% 47.11% Ordinary Share (30.32)% 38.30% 61.34% 14.53% (4.06)% 4.90% 1.81% 18.79% 18.79% 1
Slide 8: Attribution to NAV Performance for Q3 2017
Attribution to NAV Performance for Q3 2017 Top Performers Weight in total Change in NAV performance % Change in share price/ NAV Company Status NAV1 for Q3 2017 value per share in Q3 2017 Hidroelectrica SA Unlisted 31.9% 1.2% 0.0% CN Aeroporturi Bucuresti SA Unlisted 7.2% 0.4% 0.0% Nuclearelectrica
Slide 9: Attribution to NAV Performance for 9-months 2017
Attribution to NAV Performance for 9-months 2017 Top Performers Weight in total Change in NAV performance % Change in share price/ NAV Company Status NAV1 for 9 months 2017 value per share in 9 months 2017 Hidroelectrica SA Unlisted 31.9% 3.0% 0.0% OMV Petrom SA Listed 15.4% 2.5% 10.7% CN Aeroportur
Slide 10: Portfolio
Portfolio This material is intended solely for the recipient and should not be reproduced, copied or re-transmitted. Not for public use
Slide 11: Portfolio structure
Portfolio structure Listed vs Unlisted By Sector By Controlling Ownership as at 31 October 2017 (% NAV)1 as at 31 October 2017 (% NAV)1 as at 29 September 20172 Electricity & Gas: Distribution & Supply…………26% State Electricity: Controlled Unlisted……70% Generation…….34% Entities………53% Private Listed…
Slide 12: Portfolio structure – Listed vs. Unlisted
Portfolio structure – Listed vs. Unlisted Listed Companies Unlisted Companies (% of NAV as at 29 September 2017) (% of NAV as at 29 September 2017) Hidroelectrica..………...31.91% ENEL Companies……..14.85% OMV Petrom………….15.43% Electrica Companies1……7.09% BRD GSG………………2.60% Bucharest Airport……….7.18% Nu
Slide 13: Largest holdings by NAV
Largest holdings by NAV NAV as at % in NAV Majority 31 October 2017 as at Portfolio Company Status Shareholder % Stake1 (USD mn) 31 October 2017 Hidroelectrica SA Unlisted Romanian State 19.9% 855.99 31.92 OMV Petrom SA Listed OMV 10.0% 409.73 15.28 CN Aeroporturi Bucuresti SA Unlisted Romanian Stat
Slide 14: Portfolio – Ongoing mandates
Portfolio – Ongoing mandates FP Stake Value Company FP NAV (%) (USD mn) Financial Adviser Selected Status Citigroup Global Markets Ltd, Hidroelectrica 31.9%1 856.01 Ongoing UBS Ltd Enel subsidiaries 15.0%2 404.22 Ithuba Capital Ongoing Electrica subsidiaries 7.1%2 192.92 Ithuba Capital Sold on 1 Nov
Slide 15: Hidroelectrica – Update
Hidroelectrica – Update Dividends: Pre-tax Cumulated Profit (RON mn) In 2017, FP received from the company record high dividends for FY 2016 of RON 206.6 mn, 53.5% higher than the previous year. In September 2017, the Company’s shareholders approved a special dividend of RON 1,538 655 million to be
Slide 16: OMV Petrom – Accelerated Bookbuild Offering (I)
OMV Petrom – Accelerated Bookbuild Offering (I) Transaction Details Type of Offering Accelerated bookbuild offering Pricing RON 0.2750/share Discount to pre-announcement share price (5.82)% • 2.56% of the company’s share capital Offering Size • 1.454 billion shares • RON 399.85 million / USD 104.47
Slide 17: OMV Petrom – Accelerated Bookbuild Offering (II)
OMV Petrom – Accelerated Bookbuild Offering (II) Transaction Details Allocation by type Allocation by geography (Institutional investors only) Hungary..…………………...24.0% Romanian Pension Funds….14% UK……………….………….23.8% Romanian AM..……………….8% Romania……………………23.6% International Institutions….…31% Estonia
Slide 18: OMV Petrom – Performance
OMV Petrom – Performance OMV Petrom – Share Price Performance % in USD FP Announcement of the FP SPO and LSE listing ABB 230 190 150 110 70 12/15 1/16 2/16 3/16 4/16 5/16 6/16 7/16 8/16 9/16 10/16 11/16 12/16 1/17 2/17 3/17 4/17 5/17 6/17 7/17 8/17 9/17 10/17 OMV Petrom Brent Oil Emerging Markets Oi
Slide 19: Portfolio Holdings – Key financials for 9-months 2017
Portfolio Holdings – Key financials for 9-months 2017 EBITDA (RON mn) Net profit (RON mn) Company 9mon 2016 9mo 2017 9mon 2016 9mo 2017 OMV Petrom 3,731.0 4,919.0 877.7 1,847.7 BRD Groupe Societe Generale SA - - 606.1 1,065.5 Nuclearelectrica SA 467.1 647.1 102.4 225.3 Alro SA 168.1 336.0 63.8 223.4
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 (I)
Distributions to shareholders (I) Annual Distributions to Shareholders (mn RON) 1,124.3 552.7 507.7 1,499.0 1,778.5 923.6 1,190.8 1,727.6 18.3% 21.6% 17.5% 15.5% 583.1 832.5 600.0 10.5% 220.5 484.4 8.1% 362.6 344.7 389.3 1,124.3 7.5% 189.5 120.0 924.0 507.7 536.4 601.3 534.3 516.9 432.7 2010 2011 20
Slide 22: Buy-back programs
Buy-back programs No. of shares to be repurchased/% of Average the Fund’s issued share price Cancellation Program Period Status share capital (RON/share) Broker of shares Cancellation approved by Wood & Co., 29 Sep 16 – the shareholders during Seventh Finalized 830.2 mn/8.2% 0.8967 Goldman Sachs 26
Slide 23: Annual dividend income – Top portfolio companies (I)
Annual 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 90 - - - 128.9 134.6 206.6 OMV Petrom SA 47 40 36 35 - 94 353.1 319.0 331.4 120.5 - 106.8 CN
Slide 24: Dividend income – Top 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 Muntenia SA - - - - - - - - - - - - Conpet SA 90 85 85 100 100 92 6.6 8.4 8.8 2.6 3.6 8.3 Posta Romana SA - - - - -
Slide 25: 2017 Special dividends
2017 Special dividends Portfolio company RON mn (Gross amounts) Hidroelectrica SA 130.6 Bucharest Airports SA 40.0 Conpet SA 5.2 Nuclearelectrica SA 10.0 Administratia Porturilor Dunarii Maritime SA 0.2 Total 186.0 Source: GSM decisions approved by the companies shareholders’. Note: The dividends fr
Slide 26: Investor relations – Upcoming events
Investor relations – Upcoming events Romania Investor Days London 28 Feb– 1 Mar Wood’s Winter EME Conference Prague 15 FP 2018 Annual Results Feb Conference Call 7-8 Dec 29-30 UBS EMEA Nov Conference New York More information about the Fund can be found on the website www.fondulproprietatea.ro This
Slide 27: Financial results
Financial results This material is intended solely for the recipient and should not be reproduced, copied or re-transmitted. Not for public use
Slide 28: Statement of Financial Position
Statement of Financial Position 30 September 2017 31 December 2016 RON mn Unaudited Audited Cash and current accounts 22.8 5.8 Deposits with banks 573.0 305.3 Treasury bills 63.0 781.4 Government bonds 82.3 328.6 Dividends receivable 113.5 - Equity investments 9,033.4 9,992.2 Non-current assets held
Slide 29: Statement of Comprehensive Income
Statement of Comprehensive Income 9-month period 9-month period Q3 2017 Q3 2016 ended 30 September ended 30 September RON mn Unaudited Unaudited 2017 2016 Unaudited Unaudited Gross dividends 184.4 4.4 724.3 351.4 Net unrealized gain from equity investments at fair value through profit or loss 27.6 4
Slide 30: 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.