S.C. Fondul Proprietatea SA · BVB:FP
S.C. Fondul Proprietatea SA — Fondul Proprietatea — Investor Presentation (September 2024)
46 slides from S.C. Fondul Proprietatea SA's investor presentation, September 2024
Slide 1: Fondul Proprietatea
fey FRANKLIN (49). TEMPLETON Fondul Proprietatea
Slide 2: Franklin Templeton – Firm Overview
Franklin Templeton – Firm Overview
Slide 3: Extensive range of specialised capabilities
Extensive range of specialised capabilities $1.6 trillion in assets under management 1 10 Investment managers added Trending to our platform since 2019 $64bn Climate change funds and ETFs Cash $168bn $595bn Multi-Asset Equity The investment potential of AI and $755bn biotechnology from Franklin Equi
Slide 4: Gateway to investment specialists
Gateway to investment specialists Our Investment Capabilities Equity $595bn Fixed Income $565bn Our Investment Managers Asset Classes Emerging / Frontier Loans Franklin Templeton (1947) Global Credit Alcentra (2002) Preferred / Convertibles Emerging Markets Sector Government Benefit Street Partners
Slide 5: Worldwide locations
Worldwide locations US EMEA APAC Americas Andover Pasadena Amsterdam Luxembourg Ahmedabad Shanghai Buenos Aires Atlanta Philadelphia Bratislava Madrid Bangalore Singapore Calgary Baltimore Raleigh Brussels Milan Beijing Sydney Mexico City Boston Rancho Bucharest Paris Brisbane Tokyo Montevideo Chica
Slide 6: Fund Information
Fund Information Is FONDUL ey FRANKLIN » TEMPLETON eel
Slide 7: History of the Fund
History of the Fund The Fund was created by the Romanian Government in 2005 as a vehicle for providing compensation to those individuals whose real estate assets had been abusively confiscated by the Communist regime and could not be given back in-kind – Romania is still the only country in the worl
Slide 8: Key terms of the Management Agreement in force
Key terms of the Management Agreement in force Management Agreement 1 April 2024 – 31 March 2025 Distribution Fees for Base Fee per Year Duration Cash Distribution • 1.35% • 1.75%: 1 April 2024 – 31 March 2025 • 1 year Consideration for Consideration for Cash Base Fee Distribution Fee • Weighted ave
Slide 9: Investment strategy and performance objectives
Investment strategy and performance objectives Investment Objective FP’s investment objective is the maximization of returns to shareholders and the increase of the net asset value per share via investments mainly in Romanian equities and equity-linked securities. Investment Strategy Performance Obj
Slide 10: Performance objectives
Performance objectives NAV Objective Adjusted NAV/share as at the end of the Reporting Period > NAV/share as at the end of the previous reporting period Discount Objective The discount between closing price and last reported NAV/share <= 15%, in at least 2/3 of the trading days in the Reporting Peri
Slide 11: NAV objective
NAV objective Objective 2024 – interim monitoring • The Adjusted NAV per share at 31 December 2024 to be higher than NAV per • The Adjusted NAV per share as at 30 June 2024 is 9.59% higher share as at 31 December 2023 (RON 0.6608 per share). than the NAV per share as at 31 December 2023. NAV Objecti
Slide 12: Discount objective
Discount objective Objective 2024 – interim monitoring • The discount between the closing price for each trading day on the BVB, • In the period 1 January 2024 – 30 June 2024, the discount to NAV of the shares issued by the Fund and the latest reported NAV per share was above 15% in 99.2% of the tra
Slide 13: The Alternative Investment Fund Manager
The Alternative Investment Fund Manager Local functions Portfolio Legal and Investor Fund Corporate Public Client Dealer Management Company Relations & Accounting Accounting Relations Services & Investment Secretary Corporate Research Strategy Central functions Trading and Regulatory Risk Portfolio
Slide 14: Board of Nominees – Members
Board of Nominees – Members Position in BoN Current Position Mandate Until Independent non-Executive 26 November 2026 Ilinca von Derenthall Chairperson Board Director Independent non-Executive 16 November 2026 Ciprian Ladunca Chaiperson of the Audit and Board Director Valuation Committee Managing Di
Slide 15: Key Facts
Key Facts Fund Details as at 30 June 2024 Adjusted Share Price and NAV (RON) 0.60 RON USD 0.50 Adjusted Share Price Total NAV 2.31 bn 0.50 bn 0.40 0.30 NAV / Share 0.6622 0.1424 0.20 Price / Share 0.3950 0.0850 0.10 0.00 Price / GDR 20.92 4.50 1/11 5/12 9/13 1/15 5/16 9/17 1/19 6/20 10/21 2/23 6/24
Slide 16: Shareholder structure
Shareholder structure Evolution (% Held)1 10% 2% 2% 10% 10% 3% 8% 3% 18% 6% 12% 3% 9% 13% 13% 15% 37% 37% 38% 14% 10% 6% 5% 4% 3% 3% 3% 3% 3% 4% 3% 3% 3% 3% 6% 20% 16% 17% 12% 15% 11% 11% 12% 10% 3% 6% 43% 25% 22% 3% 4% 54% 13% 3% 2% 55% 53% 37% 30% 28% 22% 18% 10% 8% 5% 2% 34% 35% 31% 2% 2% 2% 9% 3
Slide 17: FP Market valuation / performance
FP Market valuation / performance FP Adjusted Share Price (RON) vs. Discount / NAV vs. Market Capitalization (USD bn) Premium (%) 0.60 6% Discount to Unlisted Portfolio – 37.8% 0.50 -4% 0.50 Unlisted -14% 0.40 0.37 Net Cash and 0.36 -24% 0.10 Receivables 0.30 0.03 Listed -34% NAV Market Capitalizati
Slide 18: 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 2023 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% (2.4)% 10.3% 357.9% (RON) Share Price (30.3)% 38.3% 61.3% 14.5% (4
Slide 19: Portfolio
Portfolio — 7 = ie %
Slide 20: Portfolio Structure
Portfolio Structure Listed vs Unlisted By Sector (% of NAV as at 30 June 2024)1 (% of NAV as at 30 June 2024)1 19.9% 19.9% 56.4% 2.6% 5.5% 2.3% 4.9% 74.6% 13.8% Infrastructure Power Utilities: Generation Unlisted Listed Net Cash & Receivables Salt Mining Others Aluminium Net Cash & Receivables • As
Slide 21: Largest Holdings by NAV
Largest Holdings by NAV NAV as at % in NAV Majority % FP 30 June 2024 as at Portfolio Company Status Shareholder Stake1 (USD mn) 30 June 2024 Bucharest Airports Unlisted Romanian State 20.0% 198.9 40.0% Constanta Port Unlisted Romanian State 20.0% 75.2 15.1% Salrom Unlisted Romanian State 49.0% 68.7
Slide 22: Corporate Actions
Corporate Actions FONDUL @. FRANKLIN -° TEMPLETON
Slide 23: 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 11,266.8 242.2 5,500 220.00% 5,000 159.8% 170.00% 4,500 4,000 1,547.0 120.00% 3,500 3,000 269.7 70.00% 2,500 25.4% 15.5% 21.9%
Slide 24: 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
Slide 25: 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 Jan – Auerbach Grayson, 14th Finalized 2.11 bn / 37.26% 0.86002 Ongoing Dec 2023 Swiss Capital The cancellation of share
Slide 26: Past Buy-back programs
Past Buy – back programs No. of shares repurchased % of the Fund’s Average share price Program1 (mn shares) issued share capital2 (RON/share) Broker First 240.30 1.74% 0.4994 Wood & Co. Second 1,100.95 7.99% 0.8743 Wood & Co., BCR Third 252.86 1.84% 0.8123 Raiffeisen Fourth 990.86 7.19% 1.0557 Raiff
Slide 27: Past Tender offers
Past Tender offers FP pre-announcement Tender Announcement Tender price share price (RON / Premium to pre- Discount of offer Offer date (RON / share) share) announcement share price price to NAV1 Take-up rate 1st 10 Oct 2013 1.0000 0.7770 28.70% 15.12% 78.42% 2nd 20 Oct 2014 1.1100 0.8965 23.81% 10.
Slide 28: Annual dividend income – Largest Holdings by NAV
Annual dividend income – Largest Holdings by NAV Dividend Payout (%) FP Net Dividend (RON mn) Top Holdings1 2018 2019 2020 2021 2022 2023 2018 2019 2020 2021 2022 2023 Bucharest Airports 90 90 -2 0 50 903 68.0 36.7 -2 0.0 31.5 80.43 Constanta Port 25 25 25 25 25 0 3.7 5.5 6.7 6.7 5.7 0.0 Salrom 90 5
Slide 29: Total dividend income from portfolio companies
Total dividend income from portfolio companies FP Net Dividend RON 2015 2016 2017 2018 2019 2020 2021 2022 2023 202412 Total Dividends from Listed Companies (mn) 251.5 36.0 148.1 199.6 223.0 200.2 117.0 127.7 0.9 0.5 Total Dividends from Unlisted Companies (mn) 315.9 315.2 404.5 366.9 710.0 1,007.9
Slide 30: 2024 Financial calendar
2024 Financial calendar • Publication of the H1 2024 Results • Annual Shareholders • Results Meeting Conference Call 29 February 30 April 15 May 30 August 15 November • Publication of the • Publication of the • Publication of the 2023 Preliminary Q1 2024 Results Q3 2024 Results Annual Results • Resu
Slide 31: Fondul Proprietatea – Summary
Fondul Proprietatea – Summary Investor Relations The Fund Manager will continue to proactively engage with current and prospective investors in the Fund. The Fund has a current Net Asset Value of The Fund’s investment objective is the Given the discount to NAV, the Fund Manager USD 0.50 billion as a
Slide 32: Top Holdings
Top Holdings FONDUL @ FRANKLIN PROPRIETATEA » TEMPLETON
Slide 33: Bucharest Airports – Introduction
Bucharest Airports – Introduction Quick Facts Shareholding Structure Sector Type 80% Infrastructure Unlisted 20% Weight in NAV1 FP Stake1 Ministry of Fondul Transport and 40.0% RON 924 mn Proprietatea Infrastructure (USD 199 mn) • Operates the 2 airports in Bucharest, which serviced in 2021 over 6.9
Slide 34: Bucharest Airports – Update
Bucharest Airports – Update % Financial performance 2016 2017 2018 2019 2020 2021 20221 2023 H1 2023 H1 2024 y.o.y. Operating revenues (RON 754.7 890.9 992.6 1,066.6 405.6 578.0 999.1 1,206.8 519.5 613.1 18.0% mn) Operating result (RON mn) 263.6 337.6 445.9 399.0 (175.3) 40.8 345.8 499.7 247.9 302.5
Slide 35: Constanta Ports – Introduction
Constanta Ports – Introduction Quick Facts Shareholding Structure 80% Sector Type Law • The Ports law was enacted in December 2017. Infrastructure Unlisted • The law mandates the establishment under the 20% Competition Council of a Supervisory Board with quite broad powers such as oversight of key d
Slide 36: Constanta Ports – Update
Constanta Ports – Update % Financial performance 2016 2017 2018 2019 2020 2021 20221 2023 H1 2023 H1 2024 y.o.y. Operating revenues (RON 314.0 330.5 345.2 369.0 398.8 418.9 510.4 571.2 276.4 268.4 (2.9)% mn) Operating profit (RON mn) 54.8 93.8 95.8 117.0 145.9 140.6 131.5 195.9 117.7 227.5 93.3% Net
Slide 37: Salrom – Introduction
Salrom – Introduction Quick Facts Shareholding Structure • Largest salt producer in Romania having the Sector Type concession licenses for about 10% of geological reserves, economically proven. Salt mining Unlisted 51% 49% • 20 years concession agreements for 14 exploitation licenses granted in 1998
Slide 38: Salrom – Update
Salrom – Update Financial performance 2016 2017 2018 2019 2020 2021 2022 2023 H1 2023 H1 2024 % y.o.y. Operating revenues (RON 312.4 394.1 436.9 469.2 300.2 374.5 495.3 517.1 237.0 241.7 2.0% mn) Operating profit (RON mn) 36.3 107.3 93.5 84.6 15.8 70.1 134.4 140.8 57.5 66.1 15.0% Net Income (RON mn)
Slide 39: Largest Holdings by NAV – Net result evolution
Largest Holdings by NAV – Net result evolution Net Profit (RON mn) 2019 2020 2021 2022 2023 Top Holdings1 Bucharest Airports 359.6 (146.4) 34.0 304.0 453.32 Constanta Port 108.2 130.3 130.5 114.5 195.42 Salrom 77.0 11.5 60.2 120.7 130.62 Alro SA (67.2) 334.8 26.3 409.5 (561.7)3 Complexul Energetic O
Slide 40: Active Management
__ — - ii — Active Management FONDUL | @ funni,
Slide 41: Active management – Board members
Active management – Board members FT investment team attended 119 GSMs and 46 Board meetings in H1 2024 No. of Board No. Board Members No. Holdings % Stake1 % in Total NAV1 Members2 Recommended by FP2 1 Bucharest Airports 20.0% 37.6% 7 1 2 Constanta Port 20.0% 14.1% 7 1 3 Salrom 49.0% 13.6% 5 2 4 Al
Slide 42: Research coverage
Research coverage — FONDUL | @v Fawn _ |
Slide 43: Research coverage
Research coverage Broker Analyst Banca Comerciala Romana Caius Roa Rapanu Concorde Securities Ltd. Gellert Gaal Intercapital Invest Ronnie Khreis IPOPEMA Securities Florin-Adrian Ciocoi Swiss Capital Daniela Mandru WOOD & Company Iuliana Ciopraga PKO BP Securities Andrzej Rembelski Note: To our know
Slide 44: Disclaimer (I)
Disclaimer (I) This presentation 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 matters, any form of personal recommendation nor it should be construed as, constituting or forming part of,
Slide 45: Disclaimer (II)
Disclaimer (II) No information hereof is to be considered, under any circumstances, as an information provided in accordance with Article 23 of the AIFMD as such was transposed by Article 22 of Law no. 74/2015 on managers of alternative investment funds. In addition, the list of investor rights can
Slide 46: Thank You
Fondul Proprietatea Premium Point Buzesti Street 76-80, 1st District Bucharest 011017 www.fondulproprietatea.ro Thank You 45
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