S.C. Fondul Proprietatea SA · BVB:FP
S.C. Fondul Proprietatea SA — Fondul Proprietatea — Q3 2014 Earnings Presentation
39 slides from S.C. Fondul Proprietatea SA's earnings presentation, Nov 13, 2014
Slide 1: 2014 Q3 Results Presentation
2014 Q3 Results Presentation 13 November 2014 This material This materialisisintended intendedsolely solely forfor thethe recipient recipient and and should should not benot reproduced, be reproduced, copiedcopied or re-transmitted. or re-transmitted. Not intended Not for for public public use. 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 for public use.
Slide 4: The Fund – Key Facts
FUND INFORMATION 3 The Fund – Key Facts Fund Details as at 31 October 20141 RON EUR FP Share Price6 and NAV NAV 14.22 bn 3.22 bn2 NAV/Share 1.2068 0.27342 1.20 Price/Share3 0.9400 0.2130 Discount3 22.11% 22.11% 0.90 Number of Shares in Issue 12,437,136,723 Number of Paid Shares4 12,073,324,373 0.60
Slide 5: Shareholders Structure
FUND INFORMATION 4 Shareholders Structure1 Evolution (% Held) Largest Shareholders2 100% 2% 2% 6% 2% 2% 2% 2% 2% 2% 2% 3% 4% Elliott Associates 16.60% 9% 8% 10% 8% 10% 9% 9% 10% 10% 9% 9% 10% 9% 8% 10% 11% 14% 9% 9% 9% 20% 27% Total Number of 75% 10% 8,216 37% Shareholders1 9% 43% 48% 50% 52% 54% 9%
Slide 6: Net Asset Value
FUND INFORMATION 5 Net Asset Value NAV (RON)/Share 1.5000 1.3500 1.2000 1.0500 0.9000 12/10 1/11 3/11 5/11 7/11 9/11 11/11 1/12 3/12 5/12 7/12 9/12 11/12 1/13 3/13 5/13 7/13 9/13 11/13 1/14 3/14 5/14 7/14 9/14 11/14 NAV Distribution Adjusted NAV • From June to November 2012, the NAV reflects a zero
Slide 7: Contributors to NAV Performance for Q3 2014
FUND INFORMATION 6 Contributors to NAV Performance for Q3 2014 TOP PERFORMERS % change in NAV performance Change in NAV per share Company Status % in Total NAV1 for Q3 2014 (RON) Romgaz Listed 9.4% 0.34% 0.0042 Banca Transilvania Listed 0.9% 0.10% 0.0012 SN a Sarii Salrom Unlisted 0.8% 0.05% 0.0007
Slide 8: Contributors to NAV Performance for 9 months ended 30 September 2014
FUND INFORMATION 7 Contributors to NAV Performance for 9 months ended 30 September 2014 TOP PERFORMERS % change in NAV performance Change in NAV per share Company Status % in Total NAV4 for 9 months ended 30 September 2014 (RON) Electrica Furnizare1 Unlisted 0.6% 0.59% 0.0074 E.ON Energie Romania1 U
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 (%) 65% 3.22 0.9000 55% Unlisted 0.7500 45% 1.41 0.6000 0.4500 35% Net Cash and 0.26 Receivables 0.3000 25% 2.51 1/11 5/11 8/11 11/11 2/12 6/12 9/12 12/12 4/13 7/13 10/13 1/1
Slide 10: NAV and Share Price Performance
FUND INFORMATION 9 NAV and Share Price Performance Cumulative Performance Since Performance 2011 2012 2013 YTD1 Inception1 NAV -0.47% 8.91% 13.29% 27.93% 0.92% Ordinary Share Price -30.32% 38.30% 61.34% 86.82% 20.16% Average Annual Discount 2011 2012 2013 YTD2 Current Discount3 55.67% 50.20% 41.30%
Slide 11: 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 12: Portfolio Structure – 31 October 2014
PORTFOLIO PERFORMANCE 11 Portfolio Structure – 31 October 2014 Net Cash & Receivables Net Cash & Others Receivables 8% Banks 3% 8% Electricity: IPOs since 2% Generation the start of Infrastructure 17% FTIML's 3% mandate 15% Unlisted Electricity & 44% Gas: Distribution & Listed Supply 33% 24% Oil & G
Slide 13: Largest Holdings by NAV
PORTFOLIO PERFORMANCE 12 Largest Holdings by NAV Majority NAV % in NAV No. Portfolio Company Status % Stake1 as at 31 October 2014 as at Shareholder (EUR mn) 31 October 2014 1 OMV Petrom SA Listed OMV 19.0% 1,067.6 33.1 2 Hidroelectrica SA Insolvency Romanian State 19.9% 476.9 14.8 3 Romgaz SA Liste
Slide 14: IPO, SPO, and ABO Transactions
PORTFOLIO PERFORMANCE 13 IPO, SPO, and ABO Transactions Completed Transactions Offering Market Value Investment Company Transaction Seller Comments Stake (EUR mn) Consortium Selected Romgaz ABO FP 4.99% 146.4 Goldman Sachs and Erste-BCR Completed in June 2014 Raiffeisen Bank, UniCredit, SSIF Transel
Slide 15: Government SPO & IPO Calendar
PORTFOLIO PERFORMANCE 14 Government SPO & IPO Calendar Future IPOs and Privatizations Offering Offering Size Value FP Stake Value Investment Company Official Timeline1 FP Expectations Seller Size % (EUR mn) (EUR mn) Consortium Selected Delayed by the Morgan Stanley, Hidroelectrica IPO – June 2014 in
Slide 16: Disposal of the Unlisted Power and Gas Distribution Companies
PORTFOLIO PERFORMANCE 15 Disposal of the Unlisted Power and Gas Distribution Companies Company FP Stake NAV EUR mn % NAV Background Enel Distributie Muntenia (EDM) 12% 107.2 3.2% • The total value of the holdings is EUR 769.2 mn, or 23.1% of the NAV per the Fund’s 30 September 2014 Detailed Statemen
Slide 17: Top Listed Portfolio Holdings – Key Financials
PORTFOLIO PERFORMANCE 16 Top Listed Portfolio Holdings – Key Financials Company EBITDA(RON mn) Net Profit (RON mn) 9-months 2013 9-months 2014 9-months 2013 9-months 2014 OMV Petrom SA 6,994 6,394 3,663 2,407 Romgaz SA 1,491 1,929 797 1,114 BRD Groupe Societe Generale - - 50 20 Conpet SA 39 51 40 48
Slide 18: Update on Hidroelectrica Insolvency
PORTFOLIO PERFORMANCE 17 Update on Hidroelectrica Insolvency Net Income vs. Foregone Profits (RON mn) 1,590 1,060 282 247 1,573 680 530 815 784 719 763 292 0 48 -125 -508 -530 2009 2010 2011 2012 2013 Jan - Oct 2014 Actual Net Profits Forgone Profits Actual Loss Source: Company ‘s Financial Statemen
Slide 19: Corporate Governance Code and Listing of SOEs
PORTFOLIO PERFORMANCE 18 Legend Corporate Governance Code and Listing of SOEs ✓ Completed ? Appointment suspected to be politically influenced Corporate Governance Code was Approved by GEO 109/2011 on 30 November 2011 X Not completed Changes from H12014 Independent Professional Company FP Stake¹ % i
Slide 20: Valuation Gap Between Romania and Other Countries
PORTFOLIO PERFORMANCE 19 Valuation Gap Between Romania and Other Countries Valuation Comparison: Romania vs. Countries in the Region 22.7 22.7 22.6 21.3 10.5 9.3 1.5 1.1 0.84 0.9 1.4 0.9 3.5 2.8 3.7 4.2 3.1 2.9 Price-to-Earnings Ratio Price-to-Book Ratio Dividend Yield Romania (BET) Turkey (BIST 100
Slide 21: 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 22: Updated Annual Cash Distribution Policy
CORPORATE ACTIONS 21 Updated Annual Cash Distribution Policy Status • The Fund Manager has amended the Fund’s Annual Cash Distribution Policy to reflect the FSA’s interpretation on the NAV calculation methodology, which in essence limits the Fund’s current ability to distribute dividends • The Fund
Slide 23: Dividend Income – Top 20 Portfolio Companies
CORPORATE ACTIONS 22 Dividend Income – Top 20 Portfolio Companies FP NET DIVIDEND (RON mn) 1 Top 20 Holdings 2014 2013 2012 2011 1 OMV Petrom SA 331.4 319.0 353.1 201.6 2 Hidroelectrica SA — — — 52.5 3 Romgaz SA 148.5 158.9 140.6 106.0 4 ENEL Distributie Banat SA — — — 20.2 5 ENEL Distributie Munten
Slide 24: Buy-Back Programs
CORPORATE ACTIONS 23 Buy-Back Programs No. of shares to be repurchased/ Average share Program Period Status Broker Cancellation of shares % of the Fund’s issued share capital price (RON/share) Ongoing. Cancellation Third March-July 2014 Completed 252.9 mn/1.89% 0.8126 Raiffeisen approved on 23 Sept
Slide 25: Buy-Back Program – Average Daily Trading
CORPORATE ACTIONS 24 Buy-Back Program – Average Daily Trading Average Daily Turnover in October 2014 (EUR mn) London GDRs BVB 2.58 0.43 0.29 0.49 0.56 0.66 0.16 0.33 0.27 0.25 0.20 0.17 FP Electrica Romgaz OMV Petrom Banca BRD Transgaz Transelectrica SIF Moldova SIF Banat Transilvania Crisana Fourth
Slide 26: Secondary Listing on the LSE – Plan
CORPORATE ACTIONS 25 Secondary Listing on the LSE – Plan Fungible trading between London and Bucharest is planned to be achieved via the use of Depositary Interests (“DIs”) in the UK. In this regard, a UK-based registrar and depository would bridge the London and Bucharest markets by holding Shares
Slide 27: Top 15 Funds on LSE
CORPORATE ACTIONS 26 Top 15 Funds on LSE Premium / Discount to % Listed Fund Symbol Currency Total NAV NAV (%) (approximately) Alliance Trust ATST GBP 2.85 -12.30% 96 Scottish Mortgage SMT GBP 2.7 0.74% 96 Fondul Proprietatea FP. USD 2.51 -24.34% 55 F&C Investment Trust FRCL GBP 2.51 -10.35% 85 RIT
Slide 28: LSE Listing – Discounts / Premiums for LSE and SFM Funds
CORPORATE ACTIONS 27 LSE Listing – Discounts / Premiums for LSE and SFM Funds Average % Min % Max % SFM (All) -1.96% -50.18% 15.91% LSE (Top 15 largest) 5.72% -17.47% 107.10% • Fondul Proprietatea’s discount to NAV as at 11 November 2014 was 21.86%. Source: Jefferies, Morningstar, Bloomberg, Company
Slide 29: Investor Relations – Upcoming Events
CORPORATE ACTIONS 28 Investor Relations – Upcoming Events Wood Emerging Europe Conference Prague, Czech Republic 2-4 Dec 2014 FP Analyst and Investor Days Bucharest, Romania CEE & Austria Conference, 19 - 21 U.S. Road-show FP GSM Nov 2014 New York, U.S. Bucharest, Romania 24-25 19 Nov 2014 Nov 2014
Slide 30: Fondul Proprietatea – 2014 Fall Analyst and Investor Days
CORPORATE ACTIONS 29 Fondul Proprietatea – 2014 Fall Analyst and Investor Days Bucharest /Prahova county Wednesday, 19 November 2014 11.30 p.m. / 12.00 p.m. Pick-up from Marriott Hotel / Intercontinental Hotel 12:00 p.m. Departure to OMV PETROM Refinery and Power-Plant in Ploiesti 1.30 – 3.00 p.m. O
Slide 31: Fondul Proprietatea – 2014 Fall Analyst and Investor Days
CORPORATE ACTIONS 30 Fondul Proprietatea – 2014 Fall Analyst and Investor Days Bucharest Thursday, 20 November 2014 – Marriott Hotel, Constanta Room 8:30 a.m. Registration and Breakfast Welcome – Dr. Mark Mobius (Executive Chairman Templeton Emerging Markets Group) and 8:50 – 9:00 am Grzegorz Koniec
Slide 32: Fondul Proprietatea – 2014 Fall Analyst and Investor Days
CORPORATE ACTIONS 31 Fondul Proprietatea – 2014 Fall Analyst and Investor Days Bucharest Thursday, 20 November 2014 – Marriott Hotel, Constanta Room Ministry of Transportation 11:35 – 11:50 a.m. Ioan Rus, Minister Financial Supervisory Authority – Presentation and Q&A 11:55 a.m. – 12.15 p.m. Misu Ne
Slide 33: Fondul Proprietatea – 2014 Fall Analyst and Investor Days
CORPORATE ACTIONS 32 Fondul Proprietatea – 2014 Fall Analyst and Investor Days Bucharest Thursday, 20 November 2014 – Marriott Hotel, Constanta Room ENEL Romania – Presentation and Q&A 4:45 – 5:20 p.m. Toni Volpe, CEO Hidroelectrica – Presentation and Q&A 5:20 – 5:55 p.m. Remus Borza, EURO INSOL SPR
Slide 34: Fondul Proprietatea – 2014 Analyst and Investor Days
CORPORATE ACTIONS 33 Fondul Proprietatea – 2014 Analyst and Investor Days Bucharest Friday, 21 November 2014 – Marriott Hotel, Grand Ballroom 9:00 a.m. – 4:00 p.m. One-on-one meetings with portfolio companies 1:00 – 2:00 p.m. Lunch 7:00 p.m. Dinner, hosted by Fondul Proprietatea Companies Fondul Pro
Slide 35: General Shareholders Meeting on 19 November 2014
CORPORATE ACTIONS 34 General Shareholders Meeting on 19 November 2014 OGM Agenda • The approval of the 2015 budget of Fondul Proprietatea SA • The appointment of DELOITTE AUDIT S.R.L as the financial auditor of Fondul Proprietatea SA • The appointment of 3 members of the Board of Nominees following
Slide 36: Q3 2014 Financial Results
Q3 2014 Financial Results This material is intended solely for the recipient and should not be reproduced, copied or re-transmitted. Not for public use.
Slide 37: Income Statement (RON million)
Q3 2014 FINANCIAL RESULTS 36 Income Statement (RON million) Q3 2013 Q3 2014 9 month period ended 9 month period ended (Unaudited) (Unaudited) 30 Sept. 2013 (Unaudited) 30 Sept. 2014 (Unaudited) Revenues from Current Activity, Out of Which: 49.8 246.8 924.6 1,699.4 Revenues from Financial Assets 15.0
Slide 38: Balance Sheet (RON million)
Q3 2014 FINANCIAL RESULTS 37 Balance Sheet (RON million) 31 December 2013 30 June 2014 30 September 2014 (Audited) (Unaudited) (Unaudited) Intangible Assets 0.8 0.6 0.7 Financial Assets 10,490.6 10,157.0 9,788.7 Non-Current Assets – Total 10,491.4 10,157.6 9,789.4 Current Assets – Total 454.1 1,659.
Slide 39: 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.