S.C. Fondul Proprietatea SA · BVB:FP
S.C. Fondul Proprietatea SA — Fondul Proprietatea — Q1 2012 Earnings Presentation
34 slides from S.C. Fondul Proprietatea SA's earnings presentation, May 15, 2012
Slide 1: 2012 First Quarter Results Presentation
15 May 2012 Fondul Proprietatea 2012 First Quarter 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: 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 4: The Fund – Key Facts
FUND INFORMATION 3 The Fund – Key Facts Fund Details as of 30 April 2012 Dividends RON EUR* Base Currency RON 2006 0.0025 0.0070 Fund Launch Date 28 December 2005 2007 0.0066 0.0018 2009 0.0816** 0.0193 Franklin Templeton 29 September 2010 Appointment Date 2010 0.03141 0.0077 Listing Date 25 January
Slide 5: The Fund Manager–Bucharest Branch and Summary of the Management Contract
FUND INFORMATION 4 The Fund Manager–Bucharest Branch and Summary of the Management Contract John Lusk Franklin Templeton Investment Management Ltd., Bucharest FTIML Director & Exec. Vice-President, Portfolio Branch acting as Sole Director and Fund Manager Operations Fees Dr Mark Mobius •Consideratio
Slide 6: Board of Nominees – Current Structure
FUND INFORMATION 5 Board of Nominees – Current Structure Current Members Position Current Position Sorin Mindrutescu Chairman Managing Director, Oracle Romania Cristian Busu Member Director, Marfin Bank Julian Healy Member Independent non-Executive Board Director Piotr Rymaszewski Member CEO and Fun
Slide 7: Shareholders Structure
FUND INFORMATION 6 Shareholders Structure Shareholders Structure* (% Held) Evolution 100% 6% 9% 8% 11% 11% 11% Top Shareholders** 14% 20% 27% Percen tag e H eld 75% 10% 9% 37% 43% Elliott Associates 13.91% 48% 9% 31% 50% 28% 9% 10% 37% 9% City of London 25% 7.21% 38% Investment Management 39% 37% 36
Slide 8: Net Asset Value
FUND INFORMATION 7 Net Asset Value NAV (RON) / Share Cumulative Performance First Quarter 2012: +10.5% Cumulative Performance 31 December 2010 – 30 April 2012: +10.3% Dividend Dividend 1.2500 0.03141 1.1942 1.2004 1.1919 1.1951 1.1922 0.03854 1.1692 1.1754 1.1625 1.1352 1.1450 1.1290 1.1572 1.1500 1
Slide 9: Contributors to NAV Performance for Q1 2012
FUND INFORMATION 8 Contributors to NAV Performance for Q1 2012 Top Performers % in Total % change in NAV Change in NAV per Company Status NAV performance for Q1 2012 share (RON) Petrom Listed 29.6% 9.8% 0.1061 Transgaz Listed 2.7% 0.3% 0.0028 Azomures Listed 0.7% 0.3% 0.0028 Raiffeisen Bank Internat
Slide 10: Fund Portfolio
Fund Portfolio This material is intended solely for the recipient and should not be reproduced, copied or re-transmitted. Not intended for public use.
Slide 11: Portfolio Structure (I)
PORTFOLIO MANAGEMENT 10 Portfolio Structure (I) • As of 30 April 2012, the portfolio was heavily weighted towards the electricity, oil and gas sectors (approx. 90% of the NAV) • During the first quarter of 2012, the Fund received 498,576 shares in Hidroelectrica, following a share capital increase o
Slide 12: Portfolio Structure (II)
PORTFOLIO MANAGEMENT 11 Portfolio Structure (II) • As of 30 April 2012, the portfolio included stakes in 73 companies (27 listed and 46 unlisted) • Mergers: • January 2012: Delfincom and Prestari Servicii merged with Primcom • April 2012: General Shareholders’ Meetings of CE Rovinari, CE Craiova, CE
Slide 13: Largest Holdings
PORTFOLIO MANAGEMENT 12 Largest Holdings No. Portfolio Company Status % Stake* Majority Shareholder NAV EUR mn % in Total NAV 1 OMV Petrom Listed–SPO 2012 20% OMV 1,038.9 29.4% 2 Hidroelectrica IPO 2012 20% Romanian State 759.7 21.5% 3 Romgaz IPO 2012 15% Romanian State 277.6 7.9% 4 CE Turceni Unlis
Slide 14: Update on Fund Management Strategy
Update on Fund Management Strategy 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 and Corporate Actions
FUND MANAGEMENT STRATEGY 14 Portfolio and Corporate Actions • Portfolio Structure: • listing the largest portfolio companies (i.e. IPOs of Romgaz and Hidroelectrica in 2012) • disposing of some unlisted companies (i.e. electricity and gas distribution companies) • Dividend Policy: All dividends rece
Slide 16: FP Market Valuation/Performance
FUND MANAGEMENT STRATEGY 15 FP Market Valuation/Performance NAV vs. Market Capitalization (EUR bn)* FP Share Price and Free Float** 4 0.8 110% 0.7 3 90% 2.13 Unlisted 0.6 2 70% 0.5 1 50% 1.41 1.52 0.4 Listed 0 0.3 30% Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 NAV Market Capitalization
Slide 17: 2011–2012 SPO & IPO Timeline
FUND MANAGEMENT STRATEGY 16 2011–2012 SPO & IPO Timeline • After the expected IPOs, the weight of listed holdings will increase from 40% of NAV to 73% of NAV as of 30 April 2012 • Law 247 / 2005 specified that all state-owned companies in the Fund’s portfolio must be listed by the end of 2008; new d
Slide 18: Governing Program of the New Cabinet
FUND MANAGEMENT STRATEGY 17 Governing Program of the New Cabinet Main Provisions Relevant to the Fund • Continue the privatization process • Restructure the state-owned enterprises in order to reduce losses and limiting arrears. Arrears should be reduced until the end of the year with a sum equal to
Slide 19: Victor Ponta’s New Cabinet
FUND MANAGEMENT STRATEGY 18 Victor Ponta’s New Cabinet Victor Ponta (PSD) – Prime Minister • Victor Ponta, 39, is the president of the Social-Democratic Party (PSD) and the co-leader of the Social- Liberal Union (USL). Victor Ponta is a former prosecutor. • Mr. Ponta has coordinated the Bureau for M
Slide 20: Victor Ponta’s New Cabinet
FUND MANAGEMENT STRATEGY 19 Victor Ponta’s New Cabinet Daniel Chitoiu (PNL) - Minister of Economy and Business Environment • Daniel Chitoiu, 45, is a Vice President of PNL, member of the Chamber of Deputies, and the president of the Chamber of Fiscal Consultants. • Mr. Chitoiu has worked as a financ
Slide 21: Disposal of the Unlisted Power and Gas Distribution Companies
FUND MANAGEMENT STRATEGY 20 Disposal of the Unlisted Power and Gas Distribution Companies • In March 2012, the Fund Manager selected Citigroup Global Markets Ltd. as exclusive intermediary to facilitate one of more transactions involving the Fund’s holdings in the unlisted power and gas distribution
Slide 22: Dividends – Top 20 Portfolio Companies
FUND MANAGEMENT STRATEGY 21 Dividends – Top 20 Portfolio Companies 2012 Dividend 2011 Dividend 2012 FP Net 2011 FP Net Top 20 Holdings* 2011 Profit 2010 Profit Payout % Payout % Dividend Dividend 1 OMV Petrom 3,758.6 2,189.7 47% 46% 353.1 201.6 2 Hidroelectrica 8.4*** 292.3 n/a 90% n/a 52.5 3 Romgaz
Slide 23: Secondary Listing: WSE Recommendation
FUND MANAGEMENT STRATEGY 22 Secondary Listing: WSE Recommendation On 4 April 2012, the Fund’s shareholders: • Approved in principle the secondary listing of the Fund on the Warsaw Stock Exchange • Approved an instruction to the Franklin Templeton Investment Management Ltd Bucharest Branch to present
Slide 24: Buyback Programs
FUND MANAGEMENT STRATEGY 23 Buyback Programs Update on Completed and Proposed Buy Back Programs: • 240.3 million shares equivalent to 1.74% of the Fund’s issued share capital were bought back as at 30 September 2011, at an average price of RON 0.4994, for a total amount of RON 120.3 million • Cancel
Slide 25: Investor Relations / Upcoming Events
FUND MANAGEMENT STRATEGY 24 Investor Relations / Upcoming Events Date Event 21 - 25 May 2012 U.S. Road-show 30 May 2012 Fondul Proprietatea at the CEE IPO Summit 2012 in Warsaw Fondul Proprietatea at the Prague Spring Emerging Europe 31 May – 1 June 2012 Conference June 2012 General Shareholders Mee
Slide 26: Q1 2012 Results
Q1 2012 Results This material is intended solely for the recipient and should not be reproduced, copied or re-transmitted. Not intended for public use.
Slide 27: Income Statement
2012 FIRST QUARTER RESULTS 26 Income Statement 31 March 2012 31 March 2011 (RON million) (Unaudited) (Unaudited) Revenues from Current Activity, Out of Which: 13.4 33.3 Interest Income 7.0 17.3 Reversal of Impairment Adjustments & Provisions 5.0 9.8 Revenues from Disposal of Financial Assets 0.1 0.1
Slide 28: Balance Sheet
2012 FIRST QUARTER RESULTS 27 Balance Sheet 31 March 2012 31 December 2011 (RON million) (Unaudited) (Audited) Financial Assets 12,096.3 10,627.9 Non-Current Assets–Total 12,096.3 10,627.9 Current Assets–Total 520.7 549.2 Prepaid Expenses 0.2 - Payables Within One Year 20.4 42.2 Total Assets Less Cu
Slide 29: Appendix
Appendix This material is intended solely for the recipient and should not be reproduced, copied or re-transmitted. Not intended for public use.
Slide 30: Hidroelectrica Themes
APPENDIX 29 Hidroelectrica Themes • IPO—should take place by the end of Financial results October 2012. Consortium of investment banks selected. Engagement letter to be mil. RON 2009 2010 2011** signed in the future. Sales 2,421 3,274 2,943 • Long term bilateral contracts—under negotiation. At stake
Slide 31: Romgaz Themes
APPENDIX 30 Romgaz Themes • IPO—Consortium of investment banks Financial results selected, engagement letter signed, preparation underway, expected 3Q 2012 mil. RON 2009 2010 2011* • Gas price liberalization—Government to Sales 3,562 3,574 4,211 present a liberalization schedule for gas prices soon,
Slide 32: Nuclearelectrica Themes
APPENDIX 31 Nuclearelectrica Themes Financial results • IPO—should take place by the end of mil. RON 2010 2011* 2012** November 2012. Consortium of investment banks to submit offers by the end of May 21st. Sales 1,540 1,641 1,793 • Budget allocations for heavy water—starting with 2012 Nuclearelectri
Slide 33: CE Oltenia Themes
APPENDIX 32 CE Oltenia Themes SNLO 11.5% • Merger – the merger of CE Craiova, CE Turceni, CE Rovinari and SNLO was approved by GSMs on 30 April 2012 CE Craiova CE Turceni • CE Oltenia highlights: 21.3% 42.2% -Installed capacity: 3,750 MWh -15 lignite coal mines with a capacity production of 30mn ton
Slide 34: For further information please contact
For further information please contact: investor.relations@fondulproprietatea.ro This material is intended solely for the recipient and should not be reproduced, copied or re-transmitted. Not intended for public use.