S.C. Fondul Proprietatea SA · BVB:FP
S.C. Fondul Proprietatea SA — Fondul Proprietatea — H1 2013 Earnings Presentation
48 slides from S.C. Fondul Proprietatea SA's earnings presentation, August 2013
Slide 1: Fondul Proprietatea 2013 First Half – Results Presentation
Fondul Proprietatea 2013 First Half – 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 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 for public use.
Slide 5: The Fund – Key Facts
FUND INFORMATION 4 The Fund – Key Facts Fund Details as at 31 July 2013 Dividend per Share (RON) 0.09000 0.08160 Base Currency RON Fund Launch Date 28 December 2005 Franklin Templeton Appointment 0.06000 Date 29 September 2010 0.03854 0.04089 Listing Date 25 January 2011 0.03141 0.03000 Values1 RON
Slide 6: Shareholders Structure
FUND INFORMATION 5 Shareholders Structure1 Evolution (% Held) 100% 6% 9% 8% Largest Shareholders2 11% 11% 12% 12% 11% 11% 12% 12% 12% 14% Elliott Associates 14.95% 20% 27% 75% 10% City of London Investment Management3 9.69% 37% 9% 43% 48% 50% Total Number of Shareholders1 8,195 9% 52% 54% 57% 58% 58
Slide 7: Net Asset Value
FUND INFORMATION 6 Cumulative Performance Second Quarter 2013: 3.10% Net Asset Value Cumulative Performance YTD: 5.68% Cumulative Performance 12-MO: 27.45% NAV (RON) / Share Dividend Dividend 0.03854 0.04089 1.1951 1.1922 1.1572 1.1688 1.1397 1.1477 1.1514 1.1601 1.1290 1.1371 1.1507 1.1585 1.1568 0
Slide 8: Contributors to NAV Performance for H1 2013
FUND INFORMATION 7 Contributors to NAV Performance1 for H1 2013 TOP PERFORMERS % change in NAV performance Change in NAV per share Company Status % in Total NAV² for H1 2013 vs. Q4 20121 (RON) ENEL Distributie Muntenia SA Unlisted 2.9% 0.60% 0.0069 Romgaz SA Unlisted 8.9% 0.28% 0.0032 ENEL Distribut
Slide 9: FP Market Valuation / Performance
FUND INFORMATION 8 FP Market Valuation / Performance NAV vs. Market Capitalization (EUR bn)1 FP Share Price2 (RON) and Discount (%) 0.7000 65% 3 Unlisted 1.91 0.6000 55% 2 Net cash and 0.21 receivables 2.18 0.5000 45% 1 Listed 1.29 0 0.4000 35% NAV Market Capitalization 1/11 4/11 6/11 8/11 11/11 1/1
Slide 10: Portfolio Performance
Portfolio Performance 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 – 31 July 2013
PORTFOLIO PERFORMANCE 10 Portfolio Structure – 31 July 2013 Net Cash & Net Cash & Receivables Others Receivables 6% 2% 6% Banks 3% Power Utilities: Generation Infrastructure 23% 3% Power & Gas Utilities: Listed Unlisted Transport, 38% 56% Distribution & Oil & Gas Supply 40% 23% • As at 30 June 2013,
Slide 12: Largest Holdings by NAV
PORTFOLIO PERFORMANCE 11 Largest Holdings by NAV NAV Majority as at 31 July 2013 % in NAV No. Portfolio Company Status Shareholder % Stake1 (EUR mn) as at 31 July 2013 1 OMV Petrom Listed OMV 19.0%2 1,035.6 30.3% 2 Hidroelectrica IPO 2014 Romanian State 19.9% 454.3 13.3% 3 Romgaz IPO 2013 Romanian S
Slide 13: Portfolio Structure – SPO & IPO Calendar
PORTFOLIO PERFORMANCE 12 Portfolio Structure – SPO & IPO Calendar Privatization Progress Market Value Company Official Timeline1 Offering Stake (mn EURO) Seller Investment Consortium Selected Comments Transelectrica SPO – April 2012 15.0% 37.62 Romanian State BCR, Swiss Capital, Intercapital Invest
Slide 14: Disposal of the Unlisted Power and Gas Distribution Companies
PORTFOLIO PERFORMANCE 13 Portfolio Structure – Disposal of the Unlisted Power and Gas Distribution Companies Company FP Stake NAV EUR mn % NAV Background: E.ON Moldova Distributie 22% 72.7 2.2% • In March 2012, the Fund Manager selected Citigroup Global Markets Ltd. as exclusive intermediary to faci
Slide 15: OMV Petrom Share Placement
PORTFOLIO PERFORMANCE 14 OMV Petrom Share Placement: • On 17 May 2013, Fondul Proprietatea announced the completion of a placement of 632.5 mn OMV Petrom shares, representing 5.6% of the Fund’s holding in the company, at a price of RON 0.39 / share • The bookbuilding process was undertaken with J.P.
Slide 16: Corporate Governance Code and Listing of SOEs
PORTFOLIO PERFORMANCE 15 Corporate Governance Code and Listing of SOEs Corporate Governance Code was Approved by OUG 109/2011 on 30 November 2011 Professional Company FP Stake¹ % in Total NAV¹ NAV EUR mn¹ Listing Status² Independent Board² Management² Hidroelectrica 20% 13.2% 448.8 X X X Romgaz 15%
Slide 17: Active Management – Board Members
PORTFOLIO PERFORMANCE 16 Active Management – Board Members No. of Board No. of Directors Holdings % Stake¹ % in Total NAV¹ Members² Recommended by FP² 1 OMV Petrom SA 19 30.2 9 1 • Attended 222 General 2 Hidroelectrica SA 20 13.3 7 1 Shareholders Meetings and 3 Complexul Energetic Oltenia SA 22 5.9
Slide 18: Measures Agreed with IMF
PORTFOLIO PERFORMANCE 17 Measures Agreed with IMF Reforming State-Owned Enterprises Measures with Impact on the Energy Sector • Changes to Corporate Governance legislation (OUG 109/2011): • Deregulation of electricity prices: first three steps have been – Establish a list of 3 companies that will be
Slide 19: 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 20: Buy-Back Program (I)
CORPORATE ACTIONS 19 Buy-Back Program (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-back pr
Slide 21: Buy-Back Program (II)
CORPORATE ACTIONS 20 Buy-Back Program (II) Average Daily Turnover in July 2013 (EUR thousands) 4,594 451 342 144 143 110 108 81 FP BRD OMV Petrom Banca Transilvania Transgaz Transelectrica SIF Oltenia SIF Moldova Second Buy-Back Program ADTV (July 2013) 31.8 mn shares / EUR 4.6 mn 25% of ADTV 7.9 mn
Slide 22: Secondary Listing on the Warsaw Stock Exchange
CORPORATE ACTIONS 21 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 Status: • Currently, ther
Slide 23: Dividend Income – Top 20 Portfolio Companies
CORPORATE ACTIONS 22 Dividend Income – Top 20 Portfolio Companies PROFIT DIVIDEND PAYOUT % FP NET DIVIDEND Top 20 Holdings1 2012 2011 2010 2012 2011 20138 2012 2011 1 OMV Petrom SA2 3,946.1 3,758.6 2,189.7 40 47 319.0 353.1 201.6 2 Hidroelectrica SA (508.0) 6.5 292.3 – – – – 52.5 3 Romgaz SA 1,244.1
Slide 24: Investor Relations / Upcoming Events
CORPORATE ACTIONS 23 Investor Relations / Upcoming Events Date Event 16 – 17 September 2013 10th Annual Emerging Europe Investment Conference, Warsaw 30 September – 1 October Citi Frontier Symposium, London 7 – 11 October 2013 Erste Investor Conference, Stegersbach 15 October 2013 Romanian Day in Lo
Slide 25: H1 2013 Results
H1 2013 Results This material is intended solely for the recipient and should not be reproduced, copied or re-transmitted. Not for public use.
Slide 26: Income Statement
H1 2013 RESULTS 25 Income Statement For the six month period ended 30 June 2012 30 June 2013 (RON mn) (Unaudited) (Unaudited) Revenues from Current Activity, out of which: 847.8 874.8 • Revenues from Financial Assets 618.1 604.8 • Interest Income 14.0 20.7 • Reversal of Impairment Adjustments & Prov
Slide 27: Balance Sheet
H1 2013 RESULTS 26 Balance Sheet 31 December 2012 30 June 2013 (RON mn) (Audited) (Unaudited) Intangible Assets 0.3 0.8 Financial Assets 11,097.8 10,675.1 Non-Current Assets–Total 11,098.1 10,675.9 Current Assets–Total 776.5 1,390.5 Prepaid Expenses 0.1 0.1 Payables within One Year 21.1 435.2 Total
Slide 28: Appendix
Appendix This material is intended solely for the recipient and should not be reproduced, copied or re-transmitted. Not for public use.
Slide 29: OMV Petrom – Update
APPENDIX 28 OMV Petrom – Update Quick Facts Calendar of Gradual Elimination of Regulated Gas Prices2 Sector Integrated Oil & Gas Internal Production Price (RON/MWh) Type Listed 120 Weight in NAV1 30.3% RON 4,562 mn FP Stake1 80 (EUR 1,036 mn) Shareholding Structure³ 40 OMV AG 51% Ministry of Economy
Slide 30: OMV Petrom vs. Peer Companies
APPENDIX 29 OMV Petrom vs. Peer Companies Current Market Cap: EUR 5,453 mn1 OMV Petrom Price Evolution for the Last 5 Years vs. the BET Index (RON)3 Based on 2012 Multiples2 0.6 12,000 Fair value resulted from P/E 0.5 10,000 Fair value resulted from 0.4 8,000 P/B 0.3 6,000 Fair value resulted from 0
Slide 31: Hidroelectrica – Company Overview
APPENDIX 30 Hidroelectrica – Company Overview EV per Installed Capacity (2012 figures)–kEUR/MW1 Quick Facts 1,500 1,368 Sector 1,324 Electricity Producer Type Unlisted 1,200 1,093 Weight in NAV2 13.2% 900 735 FP Stake2 RON 2,001 mn (EUR 454 mn) 597 625 600 522 Market Share 24% (2011); 23% (2012) 427
Slide 32: Hidroelectrica – Update
APPENDIX 31 Hidroelectrica – Update Status: • Positive H1 2013 results: Revenues of RON 1,686 mn and gross profits of RON 481 mn • On 29 May 2013, the General Shareholders Meeting of Hidroelectrica appointed the Supervisory Board with a mandate valid until the implementation of OUG 109/2011, but not
Slide 33: Hidroelectrica – Impact of Insolvency Measures
APPENDIX 32 Hidroelectrica – Impact of Insolvency Measures Utilisation of short-term credit lines (mn RON) Gross profit (RON mn). Estimated gross profit for 2013 – RON 430 mn. 129 119 1 52 48 45 35 -126 -360 -417 -497 -611 -210 -781 06 / 2012 12 / 2012 01 / 2013 02 / 2013 03 / 2013 04 / 2013 05 / 20
Slide 34: Hidroelectrica – Selected Financial Information
APPENDIX 33 Hidroelectrica – Selected Financial Information RON mn 31.12.2011 (Audited) 31.12.2012 (Audited) 30.06.2012 (Non-Audited) 30.06.2013 (Non-Audited) Tangible assets 20,273 19,848 20,086 19,452 Non-current assets - Total 20,339 19,914 20,151 19,516 Current assets - Total 612 410 379 651 Adv
Slide 35: Romgaz – Company Overview
APPENDIX 34 Romgaz – Company Overview Gas Production (bcm) 2012 Romgaz vs. Peer Companies1 Quick Facts 56.47 Sector Oil & Gas 52 Type Unlisted–IPO 2013 39 Weight in NAV2 8.9% 30.11 FP Stake2 RON 1,338 mn (EUR 304 mn) 26 Shareholding Structure 13 8.23 Ministry of Economy 85% 4.32 5.66 Fondul Propriet
Slide 36: Romgaz – Performance Drivers
APPENDIX 35 Romgaz – Performance Drivers Gas Prices to End-Consumer in Romania vs. Other EU Countries1 Gas Consumption per Capita in Romania vs. Other EU Countries² (2012 – EUR / MWh) (m3/capita) 50 1,250 1,000 40 750 30 500 20 250 10 0 EU27 Bulgaria Czech Hungary Poland Romania Bulgaria Slovenia Po
Slide 37: Romgaz vs. Peer Companies
APPENDIX 36 Romgaz vs. Peer Companies Current Market Cap: EUR 2,025 mn1 Million EUR 2012 Actual 2012 @ Fully liberalized prices Based on 2012 Multiples2 Operating Revenues 978.8 2,015.5 Gas Price (€/1000cm) 107.7 290.7 Fair value resulted from P/E EBITDA 479.7 1,360.8 Taxes paid* 105.0 609.1 Fair va
Slide 38: Romgaz – Update
APPENDIX 37 Romgaz – Update Mn RON 2009 2010 2011 2012 Operating revenues 3,562 4,124 4,552 4,339 Operating profit 717 996 1,265 1,432 Net income 572 651 1,032 1,244 • IPO: Listing consortium (Goldman Sachs, Raiffeisen, Erste-BCR) currently preparing listing on BVB, expected Q4 2013. Reserve audit c
Slide 39: CE Oltenia – Company Overview
APPENDIX 38 CE Oltenia – Company Overview Quick Facts EBITDA Margin (%) – Comparative Analysis (2012) Sector Electricity Generation 40.30 Type Unlisted Weight in NAV² 5.9% FP Stake² RON 880 mn (EUR 200 mn) Market Share 31.1% (2011); 30.4% (2012) 22.00 Installed Capacity 3,900 MW 15.50 16.86 Sharehol
Slide 40: CE Oltenia – Update
APPENDIX 39 CE Oltenia – Update Financial Information RON mn 2010¹ 2011¹ 2012² 2013 Budget Operating Revenues 3,165.8 4,026.5 3,347.1 6,081.0 Operating Profit (25.0) 348.0 44.5 249.0 Net Profit (126.6) 179.9 118.3 151.2 Dividends n.a. n.a. 57.1 n.a. • Appointment of professional Board/CEO: − A new b
Slide 41: CE Oltenia – Valuation
APPENDIX 40 CE Oltenia – Valuation Current Market Cap: EUR 929 mn1 Based on 2012 Multiples P/E P/B EV/EBITDA 2010 2011 2012 2013e 2010 2011 2012 2013e 2010 2011 2012 2013e CE Oltenia² N/A N/A N/A 27.0 N/A N/A 0.7 0.8 N/A N/A 10.0 4.5 RusHydro 47.0 8.1 6.6 5.6 0.9 0.6 0.4 0.3 8.0 5.2 22.3 4.3 Verbund
Slide 42: Nuclearelectrica – Company Overview
APPENDIX 41 Nuclearelectrica – Company Overview Quick Facts Sector Electricity Generation Type Unlisted – IPO 2013 Weight in NAV¹ 4.3% FP Stake¹ RON 648 mn (EUR 147 mn) Market Share 19.4% (2011); 20.2% (2012) Installed Capacity 1,414 MW Shareholding Structure Ministry of Economy 90.3% Fondul Proprie
Slide 43: Nuclearelectrica – Update
APPENDIX 42 Nuclearelectrica – Update Financial Information Cost vs. Market Price¹ (RON/MWh) 250 RON mn 2010 2011 2012 2013 Budget 220 Sales 1,540.3 1,588.4 1,675.8 2,090.4 190 Operating Profit 155.9 162.6 152.8 438.0 160 Net Profit 13.1 95.0 34.5 131.9 130 Dividends – – 28.5 n.a. 100 1/12 4/12 7/12
Slide 44: Calendar of the Gradual Elimination of the Regulated Gas Prices
APPENDIX 43 Calendar of the Gradual Elimination of the Regulated Gas Prices Non-household consumers Starting date Internal production price Quarterly Change in Convergence degree % Final price growth % (RON/MWh) Internal Price % 01.12.2012* 35 49.0 - 5 01.04.2013 40 55.3 12.8 5 01.07.2013 47 63.4 14
Slide 45: Calendar of the Gradual Elimination of the Regulated Gas Prices
APPENDIX 44 Calendar of the Gradual Elimination of the Regulated Gas Prices Household consumers Starting date Convergence degree Internal production Quarterly Change in Final price growth % % price (RON/MWh) Internal Price % 01.12.2012* 3 45.7 - 0 01.04.2013 33 45.7 - 0 01.07.2013 36 48.5 6.1 8 01.1
Slide 46: Calendar of the Gradual Elimination of the Regulated Gas Prices
APPENDIX 45 Calendar of the Gradual Elimination of the Regulated Gas Prices Household consumers Starting date Convergence degree Internal production Quarterly Change in Final price growth % % price (RON/MWh) Internal Price % 01.01.2016 56 67.1 4.6 3 01.04.2016 60 71.7 6.8 3 01.07.2016 64 76.5 6.6 3
Slide 47: Energy on the Regulated Market 2012 – 2013
APPENDIX 46 Energy on the Regulated Market 2012 – 2013 2012 Quantity 2013 Quantity 2012 Average Price 2013 Average Price Producer (TWh) % Total Market (TWh) (RON / MWh) (RON / MWh) Nuclearelectrica SA 7.5 13.2 5.3 123 142 Hidroelectrica SA 4.1 7.2 3.9 72 125 CE Oltenia SA 3.5 6.2 2.5 183 190 OMV Pet
Slide 48: 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 for public use.