S.C. Fondul Proprietatea SA · BVB:FP
S.C. Fondul Proprietatea SA — Fondul Proprietatea — Q3 2016 Earnings Presentation
29 slides from S.C. Fondul Proprietatea SA's earnings presentation, Nov 16, 2016
Slide 1: Fondul Proprietatea Q3 2016 Results Conference Call
16 November 2016 Fondul Proprietatea Q3 2016 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: 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 Details as at RON USD2 FP Share Price4 and NAV 31 October 20161 NAV 11.05 bn 2.69 bn2 NAV/Share 1.1419 0.27762 1.2 Price/Share 0.8060 0.19602 Price/GDR 41.75 10.152 Market Capitalization as at 15 7.68 bn 1.84 bn November 20163 0.9 Discount per Share as at 15 30.44% November
Slide 5: Shareholders Structure
FONDUL PROPRIETATEA 4 Shareholders Structure Evolution (% Held) 2% 2% 2% Largest Shareholders1 2% 3% 3% 100% 6% 10% 10% 9% 10% 8% 7% 9% 9% 13% 13% Elliott Associates 21.06% 13% 14% 14% 9% 11% 12% 12% 14% 14% City of London 5.04% 75% 10% Investment Mgmt. 43% 33% 34% 35% 34% 54% 27% 35% 35% Total Numb
Slide 6: NAV, Share Price and GDR Performance
NAV, Share Price and GDR Performance Cumulative Performance (RON) Since Performance 2011 2012 2013 2014 2015 Q3 2016 YTD1 Inception1 NAV (0.47)% 8.91% 13.29% 1.39% (0.60)% 5.82% 3.29% 27.85% Ordinary Share (30.32)% 38.30% 61.34% 14.53% (4.06)% 5.95% 6.35% 81.70% Price GDR N/A N/A N/A N/A N/A 6.69% 7
Slide 7: Attribution to NAV Performance for Q3 2016
Attribution to NAV Performance for Q3 2016 TOP PERFORMERS Weight in Change in share price or NAV Total effect for Company Status total NAV¹ value per share in Q3 2016 Q3 2016 OMV Petrom Listed 23.1% 1.7% 0.36% BRD Groupe Societe Generale Listed 2.5% 12.2% 0.26% Alro Listed 0.8% 17.4% 0.11% Conpet Li
Slide 8: Attribution to NAV Performance for 9-months 2016
Attribution to NAV Performance for 9-months 2016¹ TOP PERFORMERS Weight in Change in share price or NAV Total effect for Company Status total NAV¹ value per share for 9 MO 2016 9 MO 2016 Hidroelectrica Unlisted 28.8% 23.2% 6.20% CN Aeroporturi Bucuresti Unlisted 5.6% 27.0% 1.34% CN Administratia Por
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 31 October 2016 as at 31 October 2016 at 30 September 2016 3% 4% Electricity & Gas: Distribution & Supply Unlisted Electricity: Generation 7% State 8% Controlled 13% 26% Oil & Gas Entities 13% Pr
Slide 11: Largest Holdings by NAV
Largest Holdings by NAV NAV % in NAV Majority 1 as at 31 October as at Portfolio Company Status % Stake 2016 31 October Shareholder (USD mn) 2016 Hidroelectrica SA Unlisted Romanian State 19.9% 794.78 29.58 OMV Petrom SA Listed OMV 12.6%3 390.22 14.52 CN Aeroporturi Bucuresti Unlisted Romanian State
Slide 12: Update on the Potential Disposals of Unlisted Power and Gas Distribution Companies
Update on the Potential Disposals of Unlisted Power and Gas Distribution Companies Company FP Stake NAV USD mn % NAV Background Enel Distributie Banat (EDB) 24% 156.7 5.5% • The total value of the holdings is USD 730.4 mn, or 25.6% of Enel Distributie Muntenia (EDM) 12% 114.4 4.0% the NAV per the Fu
Slide 13: Hidroelectrica – Financial Performance
FONDUL PROPRIETATEA 12 Hidroelectrica – Financial Performance • On 21 June 2016 the company exited the insolvency Pre-tax cumulated profit (RON mn) procedure by the decision of the syndic judge. • The company is run by an interim Supervisory Board composed of 7 members, and an interim Directorate, c
Slide 14: OMV Petrom Partial Sale – Transaction Details (I)
13 OMV Petrom Partial Sale – Transaction Details (I) Type of Pricing / Pricing Offering Size Offering Structure Offering Settlement • RON 0.21 per • RON 682 mn and $19 mn • 3,267,250,908 shares and • SPO of share / $7.70 per • 14 Oct / 19 • 3,641,100,108 shares 2,492,328 GDRs shares and GDR Oct for
Slide 15: OMV Petrom Partial Sale – Transaction Details (II)
14 OMV Petrom Partial Sale – Transaction Details (II) Total Allocation by Region Total Allocation by Type 1% Domestic Long Only/Pension Funds 22% 14% 35% Hedge Funds CEE Private Banks / 43% International 85% Other Transaction Highlights • Higher aftermarket liquidity • Broadened shareholder base (80
Slide 16: OMV Petrom – Share Price Performance
APPENDIX I 15 OMV Petrom – Share Price Performance % in USD 125 100 75 50 25 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 8 November 2016. This material is intend
Slide 17: Portfolio Holdings – Key Financials for 9-Months 2016 Results
Portfolio Holdings – Key Financials for 9-Months 2016 Results EBITDA (mn RON) Net Profit (mn RON) 9mo 2015 9mo 2016 9mo 2015 9mo 2016 Hidroelectrica SA 1,602.99 1,636.77 709.27 890.94 OMV Petrom SA 4,823.00 3,731.21 990.74 877.69 BRD Groupe Societe Generale SA - - 361.04 606.05 Nuclearelectrica SA 4
Slide 18: 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 19: Distributions to Shareholders
CORPORATE ACTIONS 18 Distributions to Shareholders Annual Distributions to Shareholders (mn RON) 1,124.3 552.7 507.7 1,499.0 1,778.5 923.6 1,163.3 2000 20.00% 17.47% 18.25% 15.15% 1500 15.00% 1,177.2 10.45% 1000 962.6 10.00% 8.06% 484.2 389.3 7.46% 162.0 1,124.3 500 120.0 5.00% 507.7 536.4 601.3 534
Slide 20: Updated Annual Cash Distribution Policy
FUND INFORMATION 19 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 21: 2017 Cash Distributions
FUND INFORMATION 20 2017 Cash Distributions Cash Distributions to Shareholders (RON) Cash Distribution Status Payment Date Per Share Special Distribution – Approved by shareholders on 31 October 27 March 2017 RON 0.05 Return of Capital 2016 To be submitted for shareholders’ approval Expected for Ann
Slide 22: 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 179.6 mn shares cancelled starting Wood & Co., 26 Oct 2016; Sep 2015 – Sixth Finalized 891.8 mn/8.13% 0.8208 Goldman Sharehol
Slide 23: 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 24: Appointment of Johan Meyer as Co-CEO and Co-Portfolio Manager
23 Appointment of Johan Meyer as Co-CEO and Co-Portfolio Manager CO- Portfolio Manager Fondul Proprietatea CO- CEO Franklin Templeton Investment Management Ltd UK Bucharest Branch • Johan Meyer joined Franklin Templeton Investments in 2004. Prior to his role in Romania, he was the Managing Director
Slide 25: Investor Relations – Upcoming Events
CORPORATE ACTIONS 24 Investor Relations – Upcoming Events Wood’s Winter Conference Prague 1 UBS Global Emerging Markets Dec Conference New York 28-29 Nov U.S. Roadshow Austria & CEE Investor Conference New York 18 Nov 22 Nov More information about the Fund can be found on the website www.fondulpropr
Slide 26: Q3 2016 Results
Q3 2016 Results This material is intended solely for the recipient and should not be reproduced, copied or re-transmitted. Not for public use.
Slide 27: Statement of Financial Position
Statement of Financial Position 30 September 2016 31 December 2015 RON mn Unaudited Audited Cash and current accounts 8.0 0.6 Deposits with banks 155.3 197.8 Treasury bills 321.1 20.0 Government bonds - 59.0 Dividends receivable 105.7 - Equity investments 9,692.5 11,800.7 Non-current assets held for
Slide 28: Statement of Comprehensive Income
Statement of Comprehensive Income 9 month period ended 9 month period ended RON mn (Unaudited) 30 September 2016 30 September 2015 Gross dividend income 351.4 569.3 Net gain/ (loss) from equity investments at fair value through profit or (498.8) (774.8) loss Impairment losses on equity investments a
Slide 29: 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.