S.C. Fondul Proprietatea SA · BVB:FP

S.C. Fondul Proprietatea SA — Fondul Proprietatea — Shareholder Meeting (April 2023)

40 slides from S.C. Fondul Proprietatea SA's shareholder meeting presentation, Apr 21, 2023

  1. Slide 1: Fondul Proprietatea – Annual General Shareholders Meeting

    Fondul Proprietatea – Annual General Shareholders Meeting 21 April 2023

  2. Slide 2: Performance report

    Performance report FONDUL | 642 » TEMPLETON

  3. Slide 3: Report on the Discount objective

    Report on the Discount objective

  4. Slide 4: Discount objective

    Discount objective Objective 2022 monitoring • The discount between the closing price for each trading day on • In the period 1 January – 31 December 2022, discount was lower the BVB, of the shares issued by the Fund and the latest reported than 15% in 32.3% of the trading days. NAV per share at the

  5. Slide 5: Share price and Discount / Premium evolution

    Share price and Discount / Premium evolution 2.15 5% 1.95 -2% 1.75 -9% 1.55 -16% 1.35 -23% 1.15 -30% 0.95 -36% 0.75 -43% 0.55 -50% 0.35 -57% 0.15 -64% 1/11 9/11 4/12 12/12 7/13 3/14 10/14 6/15 1/16 9/16 5/17 12/17 8/18 3/19 11/19 6/20 2/21 9/21 5/22 12/22 Adjusted Share Price (RON) Discount / Premiu

  6. Slide 6: Measures taken

    Measures taken Investor Relations Proactive investor relations program to increase the visibility of the Fund to a broader base of investors Distributed RON 2.28 billion to the Fund’s shareholders during 1 January – 31 December 2022 via: Dividend Distributions Buy-backs Total amount distributed Spec

  7. Slide 7: Creating liquidity at the portfolio level

    Creating liquidity at the portfolio level $117.6 656,219,187 $xxx 272,001,004 RON RON 928,220,191 RON Regular Dividends Special Dividends Received (Collected) Received (Collected) During 2022 the Fund also collected RON 1,781,883,964 from the disposal of the entire stake in OMV Petrom, following the

  8. Slide 8: Distributions to shareholders

    Distributions to shareholders Distributions to shareholders in the Expenses related to % of the NAV % of the average period 1 January – distributions recorded in as at market 31 December 2022 the period 1 January – 31 December capitalization as at RON (excluding related costs) 31 December 20221 Tota

  9. Slide 9: Share buybacks

    Share buybacks Buyback programme Acquisition cost of Average share shares repurchased, No. of shares price excluding transaction Cancellation No. Period Status repurchased (RON/share) costs (RON) Broker of shares1 The cancellation of shares Auerbach 31 Jan – is subject to shareholders’ 13th Finalize

  10. Slide 10: Investor Relations activity

    Investor Relations activity Communication between the Fund Manager and investors remains our top priority as we aim to ensure that investors are informed about the latest developments and obtain feedback as we continue to focus on maximizing shareholder value During the Reporting Period, the Fund Ma

  11. Slide 11: Report on the NAV objective

    Report on the NAV objective ~o— " = : >,

  12. Slide 12: NAV objective

    NAV objective Objective 2022 monitoring • The Adjusted NAV per share as at 31 December 2022, to be higher than • The Adjusted NAV per share at 31 December 2022 is 20.08% the NAV per share as at 31 December 2021 (RON 2.2624 per share) higher than the NAV per share at 31 December 2021 NAV Objective Am

  13. Slide 13: Attribution to NAV Performance January – December 2022

    Attribution to NAV Performance for the period 1 January – 31 December 2022 % Change in Weight in total Change in NAV Change in NAV share price / Company Status NAV1 performance per share (RON) NAV per share Hidroelectrica SA Unlisted 76.5% 25.56% 0.5782 30.7% Societatea Nationala a Sarii SA Unlisted

  14. Slide 14: Fund Information

    Fund Information Is FONDUL ey FRANKLIN » TEMPLETON eel

  15. Slide 15: Key Facts

    Key Facts Adjusted Share Price (RON) vs. Fund Details Discount/Premium (%) 31 March 2023 NAV RON USD 2.10 5% Total NAV 14.00 bn 3.08 bn 1.85 -3% NAV/Share 2.5823 0.5680 1.60 -12% Key trading figures as at 20 April 2023 Price/Share 2.0950 0.4659 1.35 -21% Price/GDR 102.52 22.80 1.10 -29% Market Capit

  16. Slide 16: Shareholder structure

    Shareholder structure Evolution (% Held)1 2% 2% 3% 3% 6% 3% 3% 10% 10% 8% 7% 10% 9% 9% 9% 10% 6% 4% 3% 12% 12% 14% 14% 4% 3% 13% 10% 3% 18% 3% 3% 3% 3% 3% 5% 6% 3% 3% 3% 3% 14% 3% 3% 14% 3% 17% 15% 12% 25% 20% 12% 10% 11% 12% 12% 22% 15% 14% 14% 11% 16% 18% 17% 16% 14% 11% 11% 6% 43% 54% 55% 37% 28%

  17. Slide 17: NAV, Share price and GDR Performance

    NAV, Share price and GDR Performance Cumulative Performance1 Since Performance 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 YTD2 Inception2 NAV (0.5)% 8.9% 13.3% 1.4% (0.6)% 7.3% 13.1% 19.9% 31.2% 2.2% 47.8% 19.1% 0.5% 327.5% (RON) Share Price (30.3)% 38.3% 61.3% 14.5% (4.1)% 4.9% 21.

  18. Slide 18: Portfolio

    Portfolio — 7 = ie %

  19. Slide 19: Portfolio Structure

    Portfolio Structure Listed vs Unlisted By Sector (% of NAV as at 31 March 2023)1 (% of NAV as at 31 March 2023)1 1.2% 1.1% 2.1% 2.2% 2.1% 7.4% 7.6% 96.6% 79.6% Unlisted Listed Net Cash & receivables Power Utilities: Generation Heavy industry Infrastructure Others Power & Gas Utilities: Net Cash & Re

  20. Slide 20: Largest Holdings by NAV

    Largest Holdings by NAV NAV as at % in NAV Majority % FP 31 March 2023 as at Portfolio Company Status Shareholder Stake1 (USD mn) 31 March 2023 Hidroelectrica Unlisted Romanian State 19.9% 2,452.3 79.6% Bucharest Airports Unlisted Romanian State 20.0% 156.8 5.1% Engie Romania Unlisted Engie 12.0% 96

  21. Slide 21: Largest Holdings by NAV – Net result evolution

    Largest Holdings by NAV – Net result evolution Net Profit (RON mn) Top Holdings1 2017 2018 2019 2020 2021 2022 (prelim.) Hidroelectrica 1,296.5 1,939.3 1,386.5 1,443.2 3,085.6 4,006.92 Bucharest Airports 290.7 371.8 359.6 (146.4) 34.0 215.73 Engie Romania 342.6 428.7 385.2 492.8 69.9 n.a. Constanta

  22. Slide 22: Hidroelectrica – Update (I)

    Hidroelectrica – Update (I) Prelim. 2021 % y.o.y. 2022 preliminary results 2022 • According to management, on a stand-alone basis, the Financial results (RON mn) company registered in 2022 total costs with: – windfall tax of RON 557.1 mn versus RON 113.2 mn in Operating revenues 6,501.3 9,121.1 40.3

  23. Slide 23: Hidroelectrica – Update (II)

    Hidroelectrica – Update (II) Corporate governance • On March 28, 2023, shareholders appointed a new Supervisory Board with a 4-year mandate. Out of the seven board appointments Mr. George Niculescu, Mr. Silviu Avram and Mr. George Toniuc are acting for the first time as board members on the Supervis

  24. Slide 24: OMV Petrom – Accelerated Bookbuild Offering

    OMV Petrom – Accelerated Bookbuild Offering Details 1st ABB 2nd ABB Announcement of the ABB 19-Jan-2022 13-Dec-2022 No. of shares sold 2,275,000,000 1,777,067,726 Selling price 0.43 RON/ share 0.43 RON/ share Trade date 20-Jan-2022 14-Dec-2022 Settlement date 26-Jan-2022 16-Dec-2022 Erste Group Bank

  25. Slide 25: Bucharest Airports – Update

    Bucharest Airports – Update Prelim. Financials 2016 2017 2018 2019 2020 2021 2022 % y.o.y. Operating revenues (mn RON) 754.7 890.9 992.6 1,066.6 405.6 578.0 999.5 72.9% Operating result (mn RON) 263.6 337.6 445.9 399.0 (175.3) 40.8 280.1 586.5% Net Income / Loss (mn RON) 224.7 290.7 371.8 359.6 (146

  26. Slide 26: Constanta Ports – Update

    Constanta Ports – Update Prelim. Financial performance 2016 2017 2018 2019 2020 2021 2022 % y.o.y. Operating revenues (RON mn) 314.0 330.5 345.2 369.0 398.8 418.9 493.3 17.8% Operating profit (RON mn) 54.8 93.8 95.8 117.0 145.9 140.6 128.6 (8.5)% Net Income (RON mn) 36.8 79.7 75.7 108.2 130.3 130.5

  27. Slide 27: Salrom – Update

    Salrom – Update Prelim. Financial performance 2016 2017 2018 2019 2020 2021 2022 % y.o.y. Operating revenues (RON mn) 312.4 394.1 436.9 469.2 300.2 374.5 521.0 39.1% Operating profit (RON mn) 36.3 107.3 93.5 84.6 15.8 70.1 144.9 106.7% Net Income (RON mn) 27.4 81.1 76.4 77.0 11.5 60.2 141.7 135.4% •

  28. Slide 28: ENEL companies – Update

    ENEL companies – Update E-Distributie Banat E-Distributie Muntenia E-Distributie Dobrogea Sector Power & Gas Utilities: distribution Type Unlisted Weight in NAV1 1.5% 1.3% 1.2% RON 212.9 mn RON 183.9 mn RON 170.4 mn FP NAV Value2 (USD 46.8 mn) (USD 40.5 mn) (USD 37.5 mn) Fondul Proprietatea’s Holdin

  29. Slide 29: Corporate Actions

    Corporate Actions FONDUL @. FRANKLIN -° TEMPLETON

  30. Slide 30: Distributions to Shareholders

    Distributions to Shareholders Annual Distributions to Shareholders (RON mn) 1,124.3 552.7 507.7 1,499.0 1,778.5 923.6 1,190.8 1,743.7 1,870.6 1,081.3 1,483.0 1,519.9 1,931.5 860.9 29% 2,000 25.4% 832.5 21.9% 711.5 23% 1,500 600.0 18.3% 18.3% 328.1 583.1 1,121.5 14.8% 17.0% 15.5% 17% 236.6 812.6 1,00

  31. Slide 31: Cash distribution recommendation for 2022 FY

    Cash distribution recommendation for 2022 FY Main dates related to the proposed gross cash distribution 11 May 2023 as the Ex – Date 12 May 2023 as the Registration Date 6 June 2023 as the Payment Date • Considering the provisions of the Annual Cash Distribution Policy, the available cash balance an

  32. Slide 32: Cash distributions to shareholders

    Cash distributions to shareholders Gross Cash distribution Net Cash distribution Distribution Financial year Paid in (RON/share) (RON/share) Dividend 2008-2009 (aggregate) 2010 0.08160 0.06854 Dividend 2010 2011 0.03141 0.02638 Dividend 2011 2012 0.03854 0.03237 Dividend 2012 2013 0.04089 0.03435 Re

  33. Slide 33: Buy-back programs

    Buy – back programs No. of shares (to be) repurchased Average share / % of the Fund’s price Cancellation Program Period Status issued share capital (RON / share) Broker of shares1 The cancellation of shares is submitted for Jan – Auerbach Grayson, 13th Finalized 549.02 mn / 8.83% 2.10782 shareholder

  34. Slide 34: Total dividend income from portfolio companies

    Total dividend income from portfolio companies FP Net Dividend RON 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Total Dividends from Listed Companies (mn) 373.9 538.6 251.5 36.0 148.1 199.6 223.0 200.2 117.0 127.7 Total Dividends from Unlisted Companies (mn) 275.81 143.5 315.9 315.2 404.5 366.9

  35. Slide 35: Financial results

    Financial results FONDUL | QERANELIN » TEMPLETON 3) FRANKLIN @. TEMPLETON

  36. Slide 36: Independent Auditor Report (Extract)

    Independent Auditor Report (Extract) Report on the Audit of the Financial Statements Ernst & Young Assurance Services SRL Opinion We have audited the financial statements of Fondul Proprietatea S.A. (the Fund) with official head office in 76-80 Buzesti Street, District 1, Bucharest, Romania, identif

  37. Slide 37: Statement of Financial Position

    Statement of Financial Position 31 December 2022 31 December 2021 RON mn Audited Audited Cash and current accounts 73.8 68.2 Deposits with banks 912.6 347.4 Government bonds ― 77.1 Equity investments 13,696.6 12,577.7 Non-current assets held for sale ― 1,135.2 Other assets 0.6 0.3 Total assets 14,68

  38. Slide 38: Statement of Comprehensive Income

    Statement of Comprehensive Income 2022 2021 RON mn Audited Audited Net unrealised gain/ (loss) from equity investments at fair value through profit or loss 1,961.5 4,455.7 Gross dividend income 934.9 655.1 Net gain/ (loss) from other financial instruments at fair value through profit or loss 250.2 (

  39. Slide 39: Thank You

    Fondul Proprietatea Premium Point Buzesti Street 76-80, 1st District Bucharest 011017 www.fondulproprietatea.ro Thank You

  40. Slide 40: Questions & Answers

    Questions & Answers 39

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