S.C. Fondul Proprietatea SA · BVB:FP
S.C. Fondul Proprietatea SA — Fondul Proprietatea — Q3 2012 Earnings Presentation
44 slides from S.C. Fondul Proprietatea SA's earnings presentation, Nov 15, 2012
Slide 1: 2012 Third Quarter - Results Presentation
2012 Third Quarter - Results Presentation 15 November 2012 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 and its contents are confidential and must not be distributed, published or reproduced (in whole or in part) by any medium or in any form, or disclosed or made available by recipients to any other person. By attending this presentation and/or receiving this
Slide 3: Disclaimer
DISCLAIMER 2 Disclaimer This presentation is addressed only to qualified investors within the meaning of Article 2(1)(e) of the Prospectus Directive (“Qualified Investors”). The Fund has not authorized any offer to the public of securities in any member state of the European Economic Area (the “EEA”
Slide 4: 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 5: The Fund–Key Facts
FUND INFORMATION 4 The Fund–Key Facts Fund Details as at 31 October 2012 Dividends RON EUR4 Base Currency RON 2006 0.00250 0.0070 Fund Launch Date 28 December 2005 2007 0.00660 0.0018 Franklin Templeton Appointment Date 29 September 2010 2009 0.081605 0.0193 Listing Date 25 January 2011 2010 0.03141
Slide 6: Shareholders Structure
FUND INFORMATION 5 Shareholders Structure1 Evolution (% Held) 100% 6% 9% 8% 11% 11% 11% Largest Shareholders 2 12% 12% 11% 14% 20% Elliott Associates 14.95% 27% 75% 10% 37% 9% 43% City of London 48% 50% 52% 53% 9.69% 9% Investment Management3 31% The Royal Bank of 50% 28% 5.39% 9% Scotland 10% 37% 9
Slide 7: Net Asset Value
FUND INFORMATION 6 Net Asset Value Cumulative Performance Third Quarter 2012: 1.71% Cumulative Performance YTD: -8.04% NAV (RON)/Share DIVIDEND DIVIDEND 0.03141 0.03854 1.3500 1.2004 1.1942 1.1919 1.1754 1.1625 1.1951 1.1922 1.1572 1.1688 1.1692 1.1450 1.1352 1.1290 1.1124 1.0902 1.1147 1.0742 1.078
Slide 8: Contributors to NAV Performance for Q3 2012
FUND INFORMATION 7 Contributors to NAV Performance1 for Q3 2012 TOP PERFORMERS % change in NAV performance Change in NAV per share Company Status % in Total NAV for Q3 20121 (RON) OMV Petrom SA Listed 35.2% 1.65% 0.0154 Conpet SA Listed 0.7% 0.12% 0.0011 Banca Transilvania Listed 0.5% 0.11% 0.0010 R
Slide 9: Contributors to NAV Performance for 9-month period ended 30 September 2012
FUND INFORMATION 8 Contributors to NAV Performance1 for 9-month period ended 30 September 2012 TOP PERFORMERS % change in NAV performance Change in NAV per share Company Status % in Total NAV for Q3 20121 (RON) OMV Petrom SA Listed 35.2% 8.12% 0.0876 E.ON Moldova Distributie SA Unlisted 3.1% 1.24% 0
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)
FUND PORTFOLIO 10 Portfolio Structure (I) 31 May 2012 31 October 2012 Net Cash & Others Net Cash & Others Receivables 4% Receivables 4% Power Utilities: Banks 4% 6% Generation Banks 12% 3% Power Utilities: 3% Generation Infrastructure 31% 3% Infrastructure 3% Power & Gas Utilities: Power & Gas Trans
Slide 12: Portfolio Structure (II)
FUND PORTFOLIO 11 Portfolio Structure (II) 31 May 2012 31 October 2012 Net Cash & Net Cash & Receivables Receivables 4% 6% Listed Unlisted 34% 49% Listed Unlisted 45% 62% • As at 30 September 2012, the portfolio included stakes in 69 companies (25 listed and 44 unlisted) • Disposals for the third qu
Slide 13: Largest Holdings by NAV
FUND PORTFOLIO 12 Largest Holdings by NAV1 NAV % in NAV NAV % in NAV Majority as at 31 May 2012 as at 31 May as at 31 October as at 31 October No. Portfolio Company Status Shareholder (EUR mn) 2012 2012 (EUR mn) 2012 1 OMV Petrom Listed OMV 888.0 25.3% 1,027.9 36.2% 2 Hidroelectrica Insolvency Roman
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: FP Market Valuation/Performance
FUND MANAGEMENT STRATEGY 14 FP Market Valuation/Performance NAV vs. Market Capitalization (EUR bn)1 FP Share Price and Free Float1 4 0.8 110% 0.74 Hidroelectrica4 3 0.7 90% Unlisted 0.6 1.39 2 70% Current NAV 0.5 0.17 Cash 1 50% 1.63 0.4 1.24 Listed 0 0.3 30% 1/11 3/11 5/11 7/11 9/11 11/11 1/12 3/12
Slide 16: Portfolio Structure – SPO & IPO Timeline
FUND MANAGEMENT STRATEGY 15 Portfolio Structure – SPO & IPO Timeline Privatization Progress Offering Market Value1 Company Share Sale4 Stake (mn EURO) Seller Investment Consortium Selected Comments Transelectrica SPO–April 2012 15.0% 37.62 MECMA BCR, Swiss Capital, Intercapital Invest Completed in M
Slide 17: Dividends–Top 20 Portfolio Companies
FUND MANAGEMENT STRATEGY 16 Dividends–Top 20 Portfolio Companies 2012 Dividend 2011 Dividend 2012 FP Net 2011 FP Net Top 20 Holdings1 2011 Profit 2010 Profit Payout % Payout % Dividend Dividend 1 OMV Petrom SA 3,685.6 2,189.7 47% 46% 353.1 201.6 2 Romgaz SA 1,031.7 651.2 90% 109% 140.6 106.0 3 Compl
Slide 18: Dividends – Limitations
FUND MANAGEMENT STRATEGY 17 Dividends – Limitations • Dividend Policy: all dividends received from portfolio companies and interest on cash (less operating expenses and applicable taxes) are intended to be passed on to shareholders. According to the current legislation, in order for the Fund to pay
Slide 19: Secondary Listing on the Warsaw Stock Exchange
FUND MANAGEMENT STRATEGY 18 Secondary Listing on the Warsaw Stock Exchange On 27 June 2012, the Fund’s shareholders: • Approved the details of the secondary listing plan on the WSE • Empowered the Fund Manager to file the documentation for the secondary listing by 31 December 2012 Risk: • Currently,
Slide 20: Buy-Back Programs (I)
FUND MANAGEMENT STRATEGY 19 Buy-Back Programs (I) Second Buy-Back Program: • New buy-back program to repurchase 1.1 bn shares, equivalent to 7.9% of the Fund’s issued share capital was approved by shareholders at the 25 April 2012 Extraordinary General Shareholders Meeting • The execution of the buy
Slide 21: Buy-Back Programs (II)
FUND MANAGEMENT STRATEGY 20 Buy-Back Programs (II) Average Daily Turnover for Q3 2012 (EUR thousands) 3,500 3,249 2,800 2,100 1,400 700 550 301 255 138 114 32 31 0 FP OMV BRD SIF Oltenia SIF Moldova Banca Transelectrica Transgaz Transilvania Second Buy-Back Program: • Available cash as at 31 October
Slide 22: Investor Relations / Upcoming Events
FUND MANAGEMENT STRATEGY 21 Investor Relations / Upcoming Events Date Event 21-22 November 2012 Fall Analyst and Investor Days 23 November 2012 General Shareholders Meeting 26 November 2012 Erste Group Austrian and CEE Conference in New York 28-30 November 2012 Wood & Co. Emerging Europe Conference
Slide 23: GSM Agenda – 23 November 2012
FUND MANAGEMENT STRATEGY 22 GSM Agenda – 23 November 2012 Main points on the Agenda: • The extension until 30 June 2013 of the authorisation of Franklin Templeton Investment Management Limited United Kingdom Bucharest Branch, regarding the secondary listing of Fondul Proprietatea on the Warsaw Stock
Slide 24: Update on Hidroelectrica–Insolvency Proceedings
Update on Hidroelectrica–Insolvency Proceedings This material is intended solely for the recipient and should not be reproduced, copied or re-transmitted. Not intended for public use.
Slide 25: Hidroelectrica – Insolvency
UPDATE ON HIDROELECTRICA 24 Hidroelectrica – Insolvency Current Status: • Insolvency proceedings are ongoing; • Several operational measures have already been implemented, with direct impact on Hidroelectrica’s future cash flow; • Reduction of Hidroelectrica’s high operating costs is ongoing; • The
Slide 26: Hidroelectrica Insolvency – Key Stakeholders
UPDATE ON HIDROELECTRICA 25 Hidroelectrica Insolvency – Key Stakeholders Creditors Bilateral Contracts – Key Beneficiaries • Energy Holding Judicial Administrator • EFT Romania • Alpiq Shareholder Labor Union Shareholder This material is intended solely for the recipient and should not be reproduced
Slide 27: Hidroelectrica – Measures Undertaken by the Judicial Administrator
UPDATE ON HIDROELECTRICA 26 Hidroelectrica – Insolvency Measures Undertaken by the Judicial Administrator – Euro Insol SPRL Main Operational Measures: • Terminated 6 bilateral contracts totaling 7.4 TWh / year • Renegotiated of 4 bilateral contracts totaling 3.7 TWh / year at significantly higher pr
Slide 28: Hidroelectrica–Operating Costs
UPDATE ON HIDROELECTRICA 27 Hidroelectrica–Operating Costs Operating Expenditures 30 27 21 20 EUR / MWh 15 15 13 14 11 11 10 10 8 0 Hidroelectrica Aes Tiete CESP Verbund RusHydro OPEX (excluding D&A) / MWh Generated OPEX (excluding D&A) / MWh Sold Breakdown of Operating Expenditures Energy Bought(in
Slide 29: Hidroelectrica–Main Creditors
UPDATE ON HIDROELECTRICA 28 Hidroelectrica–Main Creditors1 Creditor RON mn2 % of total claims accepted BRD Groupe Societe Generale - Academiei Branch 426.3 12.1% ING Bank N.V. - Dublin Branch 394.8 11.3% UNICREDIT Bank Austria AG 374.9 10.6% Administratia Nationala Apele Romane (Water tarrifs) 309.5
Slide 30: Hidroelectrica–Main Claims Rejected
UPDATE ON HIDROELECTRICA 29 Hidroelectrica–Main Claims Rejected Claimant Requested claim RON mn1 Alpiq Romindustries 527.8 Alro 129.7 Energy Holding 91.1 Alpiq Romenergie 79.8 Electrocarbon 18.1 SCA Cimpeanu and Associates 14.7 Elsid S.A. Titu 13.0 National Union Petrom Energie 12.6 ING Bank N.V. Am
Slide 31: Q3 2012 Results
Q3 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 32: Income Statement
Q3 2012 RESULTS 31 Income Statement 9 month period ended 9 month period ended Q3 2011 30 September 2011 Q3 2012 30 September 2012 (RON mn) (Unaudited) (Unaudited) (Unaudited) (Unaudited) Revenues from Current Activity, out of which: 2.3 595.9 13.5 861.3 • Revenues from Financial Assets (3.7) 509.5 0
Slide 33: Balance Sheet
Q3 2012 RESULTS 32 Balance Sheet 31 December 2011 30 June 2012 30 September 2012 (RON mn) (Audited) (Unaudited) (Unaudited) Intangible Assets - - 0.1 Financial Assets 10,627.9 11,428.1 11,628.7 Non-Current Assets–Total 10,627.9 11,428.1 11,628.8 Current Assets–Total 549.2 1,188.9 790.3 Prepaid Expen
Slide 34: Appendix – Selected Financials for the Top Unlisted Holdings
Appendix – Selected Financials for the Top Unlisted Holdings This material is intended solely for the recipient and should not be reproduced, copied or re-transmitted. Not intended for public use.
Slide 35: Hidroelectrica–Selected Financial Information (I)
APPENDIX 34 Hidroelectrica–Selected Financial Information (I) • The additional loss of RON 129 million related to the restatement of 2011 results was booked under the Loss RON mil. 01.01.2012 30.06.2012 carried forward account. Fixed assets 20,339.0 20,151.2 • This number does not affect the Profit
Slide 36: Hidroelectrica–Selected Financial Information (II)
APPENDIX 35 Hidroelectrica–Selected Financial Information (II) 31 August 2011 31 August 2012 Profit and Loss Account Non–Audited (RON) Non-Audited (RON) Net Turnover 2,184,534,000 1,661,496,566 Total Operating Income 2,196,127,415 1,670,736,524 Total Operating Cost, out of which: 2,143,536,344 1,726
Slide 37: Romgaz–Selected Financial Information
APPENDIX 36 Romgaz–Selected Financial Information Indicator 2010 (mn RON) 2011 (mn RON) H1 2012 (mn RON)1 Fixed Assets 5,432.05 6,232.97 6,038.84 Current Assets, Out of Which: 3,508.12 4,692.13 4,585.30 • Cash and Current Account 1,010.92 2,518.14 2,082.72 Total Assets 8,940.17 10,925.10 10,624.14 E
Slide 38: CE Oltenia–Selected Financial Information
APPENDIX 37 CE Oltenia–Selected Financial Information Indicator 2010 (Unaudited) (mn RON) 2011 (mn RON) H1 2012 (mn RON) 1 Fixed Assets 6,270.75 6,613.13 6,549.74 Current Assets, Out of Which: 1,403.45 1,534.55 1,415.69 • Cash and Current Account 138.89 204.03 203.33 Total Assets 7,674.20 8,147.68 7
Slide 39: Nuclearelectrica–Selected Financial Information
APPENDIX 38 Nuclearelectrica–Selected Financial Information Indicator 2010 (mn RON) 2011 (mn RON) H1 2012 (mn RON) 1 Fixed Assets 9,039.42 9,191.44 9,114.87 Current Assets, Out of Which: 1,250.96 1,310.76 1,344.09 • Cash and Current Account 121.92 121.93 233.45 Total Assets 10,297.26 10,508.40 10,46
Slide 40: Enel Distributie Banat–Selected Financial Information
APPENDIX 39 Enel Distributie Banat–Selected Financial Information Indicator 2010 (mn RON) 2011 (mn RON) H1 2012 (mn RON) 1 Fixed Assets 1,288.08 1,773.41 1,738.15 Current Assets, Out of Which: 642.22 631.43 721.54 • Cash and Current Account 462.19 429.81 497.83 Total Assets 1,931.03 2,405.04 2,460.2
Slide 41: Enel Distributie Muntenia–Selected Financial Information
APPENDIX 40 Enel Distributie Muntenia–Selected Financial Information Indicator 2010 (mn RON) 2011 (mn RON) H1 2012 (mn RON) 1 Fixed Assets 2,343.48 2,836.32 2,804.97 Current Assets, Out of Which: 2,070.27 1,603.40 1,613.20 • Cash and Current Account 1,858.99 1,314.25 1,223.93 Total Assets 4,413.90 4
Slide 42: GDF Suez Energy Romania–Selected Financial Information
APPENDIX 41 GDF Suez Energy Romania –Selected Financial Information Indicator 2010 (mn RON) 2011 (mn RON) H1 2012 (mn RON) 1 Fixed Assets 2,649.01 2,759.34 2,984.84 Current Assets, Out of Which: 1,551.92 1,418.24 1,196.86 • Cash and Current Account 366.01 47.93 32.58 Total Assets 4,203.59 4,180.20 4
Slide 43: CN Aeroporturi Bucuresti–Selected Financial Information
APPENDIX 42 CN Aeroporturi Bucuresti–Selected Financial Information Indicator 2010 (mn RON) 2011 (mn RON) H1 2012 (mn RON) 1 Fixed Assets 5,471.29 5,639.80 5,676.46 Current Assets, Out of Which: 167.28 101.95 142.53 • Cash and Current Account 62.11 23.19 53.80 Total Assets 7,704.47 5,742.69 5,818.99
Slide 44: Fondul Proprietatea Franklin Templeton Investment Management UK Bucharest Branch
Fondul Proprietatea Franklin Templeton Investment Management UK Bucharest Branch Premium Point Buzesti Street 78-80, 7th-8th floor 1st District 011017 Bucharest Romania This material is intended solely for the recipient and should not be reproduced, copied or re-transmitted. Not intended for public