Fund Information
The Fund - Key Facts
Fund Details1
RONUSD
NAV
10.35 bn
2.57 bn2
NAV/Share
Price/Share
1.7216 1.5100
0.42822 0.37552
Price/GDR
Market Capitalization as at 22 February 2021
74.392 9.56 bn
18.50 2.38 bn3
Discount/Share as at 22 February 2021
6.03%
Discount/GDR as at 22 February 2021
7.66%
Number of Paid Shares less Treasury Shares4
5,992,867,830
Investment Objective
2020 FY Dividend Proposal /Share5
RON 0.0720
Dividend Yield for 2020 FY5
4.51%
Maximization of returns to shareholders and increase of the net asset value per share via investments mainly in Romanian equities and equity- linked securities
Source: BVB, FP January 2021 Factsheet.
1. As at 29 January 2021. Based on local regulator methodology.
2. Computed using the NBR USD/RON FX rate as at 29 January 2021.
FP Adjusted Share Price6 and Discount (%)
1/11
4/12 7/13 10/14 1/16 5/17 8/18 11/19 2/21
DiscountAdjusted Share Price
3. Excluding Treasury shares and the equivalent number of shares corresponding to the GDRs, repurchased as at 19 February 2021.Computed using the NBR USD/RON FX rate as at 22 February 2021.
4. As at 22 February 2021.
5. Cash distribution proposal submitted for shareholders' approval during the Annual GSM on 28 April 2021. Yield calculated based on the FP share price as at 22 February 2021.
6. Source: Bloomberg and BVB until 22 February 2021, Investment Manager calculations.
2
Unlisted holdings updated valuations as at 31 December 2020
CompanyValue as at
30 September 2020
(mn RON)Value as at
31 December 2020
(mn RON)Impact of the independent valuation update on NAV
(mn RON)
% Change
Hidroelectrica 4,707.50 | 5,128.90 421.40 | 4.22% |
735.80
Bucharest Airports
624.10
(111.70)
(1.12)%
Engie Romania 426.30 | 538.80 112.50 | 1.13% |
E-Distributie Banat
252.60
272.70
20.10
(0.20)%
Constanta Ports 233.40 | 235.80 2.40 | 0.02% |
E-Distributie Muntenia
212.70
227.80
15.10
0.15%
Salrom 222.10 | 201.20 (20.90) | (0.21)% |
E-Distributie Dobrogea
164.70
177.20
12.50
0.13%
Enel Energie 25.80 | 52.50 26.70 | 0.27% |
Enel Energie Muntenia
41.20
43.10
1.90
0.02%
Zirom 31.70 | 24.88 (6.82) | (0.07)% |
Administratia Canalelor Navigabile
14.90
17.75
2.85
0.03%
Posta Romana 10.70 | 13.10 2.40 | 0.02% |
A.I. Timisoara - Traian Vuia SA
11.40
6.40
(5.00)
(0.05)%
Administratia Porturilor Dunarii Maritime 4.24 | 5.19 0.95 | 0.01% |
A.I. Mihail Kogalniceanu - Constanta
1.39
2.57
1.18
0.01%
Administratia Porturilor Dunarii Fluviale 1.68 | 2.33 0.66 | 0.01% |
1.67
Plafar
1.93
0.25
0.00%
Complexul Energetic Oltenia 0.00 | 0.00 0.00 | 0.00% |
TOTAL 7,099.79 | 7,576.26 476.46 | 4.77% |
Source: 31 December 2020 NAV report.
NAV, Share price and GDR Performance
Cumulative Performance
Since
Performance
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
YTD1
Inception1
NAV (RON)
(0.47)%
Ordinary Share Price (RON)
(30.32)%
8.91% 38.30%
13.29% 61.34%
1.39% 14.53%
(0.60)%
(4.06)%
GDR (USD)
N/AN/AN/AN/AN/A
7.33% 4.90% 1.15%
13.10% 21.46% 35.88%
19.94% 9.90%
(1.94)%
31.23% 49.05% 41.41%
2.21% 37.83% 48.47%
1.43% 4.14% 8.19%
145.1% 369.5% 147.4%
Discount Evolution
Current ShareCurrent GDRAverage Average Average Average Average Average Average Average Average
2011
2012
2013
2014
2015
2016
2017
2018
2019
Average 2020
YTD2
Price Discount3
Price Discount3
55.67%
50.09%
40.74%
30.87%
29.12%
32.08%
28.05%
29.54%
29.38%
21.06%
8.31%
6.03%
7.66%
Source: BVB, LSE, Bloomberg, FP NAV reports.
Note: The discount is calculated based on the latest published NAV available for the day of the calculation.
The Performance Inception date for the NAV is 31 December 2010, for the Share Price is 25 January 2011, and for the GDRs is 29 April 2015.
1. As at 29 January 2021.
2. For the period 4 January - 22 February 2021.
3. As at 22 February 2021.
Attribution to NAV performance for Q4 2020
Top Performers
Weight in totalCompany
Status
NAV1
Change in NAV performanceChange in NAV per share
(RON)
Hidroelectrica
Unlisted
50.0%
4.25%
0.0675
OMV Petrom Listed 14.0% | 1.14% 0.0181 |
Engie Romania Unlisted 5.2% | 1.14% 0.0180 |
ENEL Energie Unlisted 0.5% | 0.27% 0.0043 |
Romaero Listed 0.5% | 0.23% 0.0037 |
Bottom Performers
Change in NAV performanceChange in NAV per share
Company
Status
Weight in total NAV1
(RON)
Bucharest Airports
Unlisted
6.1%
(1.13)%
(0.0179)
Salrom Unlisted 2.0% | (0.21)% | (0.0033) |
Zirom Unlisted 0.2% | (0.07)% | (0.0011) |
A.I. Timisoara - Traian Vuia Unlisted 0.1% | (0.05)% | (0.0008) |
IOR Listed 0.0% | 0.00% | (0.0000) |
TOTAL NAV PER SHARE CHANGE 0.1093 |
0.1093
Note: The amounts are adjusted with the dividends declared by the companies, according with FP accounting policy. 1. 31 December 2020 NAV report.
Attribution to NAV performance for the period 1 January - 31 December 2020
Top Performers
Weight in totalCompany
Status
NAV1
Change in NAV performanceChange in NAV per share
(RON)
Hidroelectrica
Unlisted
50.0%
5.41%
0.0938
Nuclearelectrica2 Listed 0.0% | 0.75% 0.0131 |
Engie Romania Unlisted 5.2% | 0.32% 0.0056 |
ENEL Energie Unlisted 0.5% | 0.22% 0.0038 |
Romaero Listed 0.5% | 0.22% 0.0038 |
Bottom Performers
Change in NAV performanceChange in NAV per share
Company
Status
Weight in total NAV1
(RON)
OMV Petrom
Listed
14.0%
(3.06)%
(0.0530)
Bucharest Airports Unlisted 6.1% | (3.05)% | (0.0529) |
Salrom Unlisted 2.0% | (0.46)% | (0.0079) |
E-Distributie Banat Unlisted 2.7% | (0.28)% | (0.0048) |
E-Distributie Dobrogea Unlisted 1.7% | (0.20)% | (0.0034) |
TOTAL NAV PER SHARE CHANGE (0.0365) |
(0.0365)
Note: The amounts are adjusted with the dividends declared by the companies, according with FP accounting policy.
1. 31 December 2020 NAV report.
2. Nuclearelectrica was entirely sold at the end of December 2020.
Portfolio
Portfolio Structure
Listed vs Unlisted
(% of NAV as at 29 January 2021)1
Unlisted ………… ..73.23%
Listed …………… ..17.51%
By Sector
(% of NAV as at 29 January 2021)1
Net Cash &
Receivables.………9.24%
• As at 29 January 2021, the portfolio included stakes in 32 companies (6 listed and 26 unlisted)
• The net cash and receivables as at 29 January 2021 was USD 238.2 million2.
1. Source: FP January 2021 Factsheet.
2. Source: 29 January 2021 NAV report, based on the NBR RON/USD FX rate as at 29 January 2021.
Power Utilities:
Generation ... …………..... 49.57%
Oil & Gas .……….…...…..15.27%
Power & Gas Utilities:
Distribution & Supply .…..12.68%
Infrastructure ... ………… ...9.14%
Heavy industry ..... …….….2.19%
Aluminium .. ………… ..……1.66%
Net Cash &
Receivables ………… ..… .... 9.24%
Portfolio Structure - 31 December 2020 NAV
Listed Companies
Unlisted Companies
By Controlling Ownership
OMV
Petrom……..14.0%
Alro ………… ..1.6%Others.………0.7%Hidroelectrica… .... 50.0%
Enel companies…..7.5%
Bucharest Airport…6.1%
Engie Romania…...5.3%
Constanta Ports…..2.3%
Salrom…… .... …….1.9%
Others….….….…..0.7%
• As at 31 December 2020, the portfolio included stakes in 32 companies (6 listed and 26 unlisted)
• The net cash and receivables as at 31 December 2020 was USD 257.2 million2.
1. Source: FP 2020 Results report.
2. Source: 31 December 2020 NAV report, based on the NBR RON/USD FX rate as at 31 December 2020.
State Controlled
Entities……61.3%Private companies .... 28.8%
Net Cash &
Receivables….9.9%
Largest Holdings by NAV
NAV as at | % in NAV | ||||
Majority | 29 January 2021 | as at | |||
Portfolio Company | Status | Shareholder | % Stake1 | (USD mn) | 29 January 2021 |
Hidroelectrica | Unlisted | Romanian State | 19.9% | 1,275.6 | 49.6% |
OMV Petrom | Listed | OMV | 7.0% | 392.8 | 15.3% |
Bucharest Airports | Unlisted | Romanian State | 20.0% | 155.2 | 6.0% |
Engie Romania | Unlisted | Engie | 12.0% | 134.0 | 5.2% |
E-Distributie Banat | Unlisted | Enel Group | 24.1% | 67.8 | 2.6% |
Constanta Ports | Unlisted | Romanian State | 20.0% | 58.6 | 2.3% |
E-Distributie Muntenia | Unlisted | Enel Group | 12.0% | 56.7 | 2.2% |
Salrom | Unlisted | Romanian State | 49.0% | 50.0 | 1.9% |
E-Distributie Dobrogea | Unlisted | Enel Group | 24.1% | 44.1 | 1.7% |
Alro | Listed | Vimetco N.V. | 10.2% | 42.6 | 1.7% |
Top 10 Portfolio Holdings | 2,277.4 | 88.5% | |||
NAV | 2,573.1 | 100.0% | |||
NAV Per Share (USD) | 0.4282 |
Source: FP January 2021 Factsheet. Note: Values in USD calculated using the NBR USD/RON FX rate as at 29 January 2021. 1. Based on the FP 31 December 2020 Detailed Statement of Investments.
Top Portfolio Holdings - 2020 Preliminary results
EBITDA (RON mn) | Net profit (RON mn) | |||||
Company | 2019 | 2020 | %y.o.y | 2019 | 2020 | %y.o.y |
Hidroelectrica | 2,934.0 | 2,698.0 | (8.0)% | 1,386.5 | 1,453.0 | 4.8% |
OMV Petrom | 7,751.8 | 4,463.2 | (42.4)% | 3,634.7 | 1,291.0 | (64.5)% |
Bucharest Airports | 542.2 | (9.0) | (101.7)% | 359.6 | (120.3) | (133.5)% |
Constanta Port | 150.0 | 181.1 | 20.7% | 108.2 | 146.4 | 35.3% |
Total | 11,378.0 | 7,333.3 | (35.5)% | 5,489.0 | 2,770.1 | (49.5)% |
Weighted Total | 1,266.1 | 884.8 | (30.1)% | 624.5 | 385.3 | (38.3)% |
Source: OMV Petrom 2020 preliminary IFRS statements, Hidroelectrica, Bucharest Airports and Constanta Port 2020 preliminary f igures presented by the management. Note: EBITDA is calculated as Operational result + Depreciation and Amortization.
Hidroelectrica - Update
2020 preliminary results:
• According to Hidroelectrica's management, in 2020, the company's performance was as follows:
- Turnover of RON 3,788 mn, down 8.7% y.o.y,
- EBITDA of RON 2,698 mn, down 8.0% y.o.y ,
- Operating profit of RON 1,686 mn, down 14.6% y.o.y,
- Net profit of RON 1,453 mn, up 4.8% y.o.y.
• Electricity sold in 2020 was 15.96 TWh, almost flat compared to 2019, out of which electricity sold out of its own production reached 14.58 TWh compared to 14.78 TWh in 2019. Over the period, the average realized selling price was down 6.6% y.o.y. to RON 214.1 per MWh.
• During the year, Hidroelectrica sold on the regulated market 3.15 TWh of electricity, compared to 1.64 TWh sold in the previous year, at an average price of RON 109.45 per MWh, down 3.0% y.o.y.
• On the competitive market, the average realized price in 2020 was RON 238.63/ MWh, down 1.6% y.o.y.
• The company's net cash position was RON 2.08 bn as at 31 December 2020.
Pre-tax Cumulated Profit (RON mn)
Mar
Jun2017
2018
Source: Hidroelectrica 2016 - 2019 Annual reports and financial statements, press articles, company presentations, preliminary figures presented by the management for 2020.
2,289
Sep2019
Dec
2020
OMV Petrom - Update
• In 2020:
- Sales to external costumers decreased by 23% compared to the previous year, due to low oil prices environment, but supported by higher volumes of natural gas
- Operating result was 65% lower y.o.y. due to the large drop in upstream income as a result of low oil and gas prices environment and lower hydrocarbon sales
• 2021 outlook:
- Average Brent oil price of USD 50-55/bbl (from USD 41.84/bbl in 2020)
- Refining margins higher than USD 4/bbl (from USD 2.9/bbl in 2020)
- Production expected to decline around 5% y.o.y. from 145 kboe/d in 2020
- CAPEX expected to be around RON 2.9 bn, from RON 3.0 bn in 2020
- RON 0.031 per share, management's dividend proposal for the
2020 FY, flat compared to 2020
• 2021 sensitivities, according to the management:
- An increase of 1 USD/bbl in Brent price is impacting the company by EUR 20 million
- An increase of 1 USD/bbl in refining margin is impacting the company by EUR 25 million
- A 5 cents appreciation of EUR/USD exchange rate is impacting the company by EUR 35 million
- An increase of 1 EUR/MWh in gas price is impacting the company by EUR 20 million
Financial and Operational highlights
Sales to external costumers (mn RON)
• Downstream Oil
• Downstream Gas
Clean CCS Operating Result
Operating Result (mn RON)
• Upstream
• Downstream
• Corporate and consolidation
Clean CCS net income
Net income (mn RON)
Hydrocarbon production (mn boe)
Average Group realized crude price ($/bbl)
OPEX ($/boe)
Refining margin (USD/bbl)
Refinery utilisation (%)
Refined product sales (mn tons)
Gas sales volume (TWh)
Net electrical output (TWh)
Source: OMV Petrom quarterly historical IFRS figures available on OMV Petrom website, OMV Petrom 2020 results presentation.
2019
2020
%YoY
25,485
19,717
(22.6)%
18,237
13,565
(25.6)%
6,737
5,812
13.7%
4,573 4,245
2,287 1,467
(50.0)%
(65.4)%
2,589 1,913
(985)
(138.0)%
(258)
2,317 135
21.1% 152.3%
3,863
1,931
(50.0)%
3,635
1,291
(64.5)%
55.35 56.09 10.90
52.98 34.51 10.88
(4.3)%
(38.5)%
(0.2)%
4.67 97
2.89 92
(38.1)%
(5.2)%
5.46
4.99
(8.6)%
54.84
57.03
4.0%
3.40
4.17
22.6%
13
Bucharest Airports - Update
Financials1 | 2016 | 2017 | 2018 | 2019 | Prelim. 2020 | %y.o.y. |
Operating revenues (mn RON) | 754.7 | 890.9 | 992.6 | 1,066.6 | 409.8 | (61.6)% |
Operating result (mn RON) | 263.6 | 337.6 | 445.9 | 399.0 | (128.1) | - |
Net Income / Loss (mn RON) | 224.7 | 290.7 | 371.8 | 359.6 | (120.3) | - |
Number of passengers (mn) | 10.99 | 12.84 | 13.84 | 14.73 | 4.47 | (69.7)% |
Monthly | ||||||
passenger | ||||||
May | Jun | Sep | Oct | Nov | Dec |
traffic
JanFebMarApr
JulAug
2019 2020 %y.o.y.
997,779
937,570
1,061,229 1,192,000 1,301,949 1,373,571 1,469,627 1,504,038 1,384,166 1,269,928 1,123,353 1,114,684
1,072,488
969,322 3.40%
440,468
19,258
26,040
75,639
341,826
427,168
401,030
296,800
174,814
223,935
7.50%
(58.5)%
(98.4)%
(98.0)%
(94.5)%
(76.7)%
(71.6)%
(71.0)%
(76.6)%
(84.4)%
(79.9)%
2020 preliminary figures
• Preliminary 2020 results point to a net loss of RON 120 mn.
Traffic was down by 70% last year to 4.5 mn passengers, and the number of aircraft movements also halved compared to 2019.
• According to the revised budget approved in September 2020, the management is expecting the recovery to start in 2021, with an increase in passenger traffic to 7.6 mn and a gross profit of RON 15.6 mn, followed by a stronger improvement in 2022: 11.2 mn passengers and RON 207 mn gross profit.
COVID-19 considerations
• The company has been heavily impacted by the current environment: the number of passengers and flights have seen a significant decline since the beginning of the COVID-19 pandemic.
• ACI Europe, the airport industry trade body, published a report for Q3 2020 and the key takeaways are2 :
- passenger traffic in Europe decreased by 73.2% during the first 9 months of 2020 and almost coming to a complete standstill in the second quarter with a drop of 96.4% compared to the same period in 2019
- following the second wave of restrictions, European daily traffic was down by more than 80% y.o.y starting from November
1. Source: CN Aeroporturi Bucuresti IFRS financial statements and preliminary figures presented by the management for 2020, 2020 revised budget.
2. Source: ACI Europe website.
Constanta Ports - Update
Financial performance
2012
2013
2014
2015
2016
2017
2018
2019
Prelim. 2020
% y.o.y.
Operating revenues (RON mn)
Operating profit (RON mn)
Net Income (RON mn)
269.6
46.3
35.6
285.9
76.6
65.0
294.3
83.8
70.3
309.2
114.0
97.4
314.0
54.8
36.8
330.5
93.8
79.7
345.2
95.8
75.7
369.0
117.0
108.2
385.6
160.9
146.4
4.5% 37.5% 35.3%
Total traffic (thousands tons)
50.6
55.1
55.6
56.3
59.4
58.4
61.3
66.6
60.4
(9.3)%
2020 preliminary financials
• According to the preliminary 2020 results, operating revenues were up y.o.y. by 4.5% to RON 385.6 mn, although traffic declined by 9.3% y.o.y. to 60.4 mn tones, the reduction in traffic being driven mainly by crude oil and petroleum products, which registered a decline of 18.5% y.o.y to 11.7 mn tones.
• Preliminary net profit for the year stands at RON 146.4 mn, up 35.3% y.o.y.
• The boost in profitability was supported by significantly lower provisions however, the final level of provisions will be established only by the audited financial statements.
Source: Constanta Port financial statements, annual reports, and H1 2020 unaudited financial statements.
COVID-19 considerations
• In the context of COVID-19 pandemic, the company has implemented a number of measures aimed at protecting the company's personnel, ensuring the safety and continuity of operations and safeguarding the financial position of the company.
Corporate Actions
Distributions to shareholders
Annual Distributions to Shareholders (RON mn)
Gross DistributionsBuy-backsTender offerDistribution Yield (%)¹
The total distributions through buy-backs and cash would amount to RON 14.3 bn/USD 3.8 bn3
Source: Investment Manager calculations, Investment Manager annual results reports, Investment Manager current reports.
Note: Values exclude related acquisition fees. USD values based on the NBR average USD/RON FX for each year. For 2021, average USD/RON FX as at 22 February.
1. Based on the total annual distributions through buy-backs and cash, the average closing share price on BVB for the respective year, and the average number of paid shares excluding Treasury shares at year-end. For 2021, average closing share price as at 22 February and average number of paid shares excluding Treasury shares as at 19 February.
2. Based on buy-backs as at 19 February, Investment Manager cash distribution proposal for FY 2020 of RON 0.072/share submitted for shareholders' approval during the Annual GSM on 28 April 2021, and number of paid shares excluding Treasury shares as at 19 February.
3. As at 22 February 2021.
17
Buy - back programs
No. of shares (to be) repurchased/ % of the Fund's
ProgramPeriod
Statusissued share capitalAverage share price (RON/share)
BrokerCancellation of shares1
The cancellation of shares will be subject to shareholders' approval in 2022
Twelfth
1 Jan - 31 Dec 2021
Auerbach Grayson,Ongoing
800.00 mn/10.51%
1.50813
Swiss Capital
Source: Investment Manager current reports, Investment Manager calculations.
1. To be effective, the FSA endorsement is legally required, and the shareholders' resolution for the share capital decrease needs to be registered with the Trade Register.
2. Based on the 797,961,287 shares repurchased (555,481,637 ordinary shares and 242,479,650 equivalent shares of the GDRs repurchased).
3. As at 19 February 2021. Based on the 55,516,787 shares repurchased (39,100,937 ordinary shares and 16,415,850 equivalent shares of the GDRs repurchased).
18
Cash distribution recommendation for FY 2020
• The Fund incurred an accounting loss of RON 102.98 mn for the 2020 FY. The accounting loss will be covered from 2016 unallocated profit, subject to shareholders' approval.
• Although there is no distributable profit as per the statutory annual financial statements for the year ended 31 December 2020, the Investment Manager remains committed to ensure an annual cash distribution to the Fund's shareholders.
• Taken into consideration:
‒ the distributable amounts and the need to maintain additional reserves to cover the losses from the future buy-backs cancellation,
‒ the other ongoing Discount Control Mechanism measures (e.g. buy-backs),
‒ the estimated available cash,
the Investment Manager's proposal is a gross special dividend distribution of RON 0.0720 per share, in line also with the Annual
Cash Distribution Policy.
• Main dates related to the proposed gross cash distribution:
‒ 27 May 2021 as the Ex - Date;
‒ 28 May 2021 as the Registration Date;
‒ 22 June 2021 as the Payment Date.
Source: 28 April 2021 Annual GSM documentation.
Total dividend income from portfolio companies
FP Net Dividend (RON mn)
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | |
Total Dividends from Listed Companies (RON mn) | 373.9 | 538.6 | 251.5 | 36.0 | 148.1 | 199.6 | 223.0 | 200.2 |
Total Dividends from Unlisted Companies (RON mn) | 275.82 | 143.5 | 315.9 | 315.2 | 404.5 | 366.9 | 710.0 | 1,007.9 |
Total Annual Dividend Income (RON mn) | 649.7 | 682.1 | 567.4 | 351.2 | 552.6 | 566.5 | 673.7 | 525.0 |
Total Special Dividend Income (RON mn) | - | - | - | - | 185.2 | 199.5 | 259.3 | 683.1 |
Total Dividends (RON mn) | 649.7 | 682.1 | 567.4 | 351.2 | 737.8 | 766.0 | 933.0 | 1,208.1 |
Total Annual Dividend Income per Share (RON)1 | 0.04954 | 0.05674 | 0.05310 | 0.0331 | 0.0750 | 0.0797 | 0.1035 | 0.0875 |
Total Special Dividend Income per Share (RON)1 | - | - | - | - | 0.0251 | 0.0281 | 0.0398 | 0.1139 |
Dividend/Distribution per Share (RON) | 0.05000 | 0.05000 | 0.05000 | 0.05000 | 0.0678 | 0.0903 | 0.0642 | 0.072010 |
Share Price (RON) | 0.76403 | 0.81304 | 0.72005 | 0.91806 | 0.89907 | 1.01508 | 1.18509 | 1.595011 |
Yield | 6.54% | 5.84% | 6.94% | 8.76% | 7.54% | 8.90% | 5.42% | 4.51%11 |
Yield for Romanian companies (BET) | 5.10% | 3.50% | 4.56% | 7.07% | 8.59% | 9.17% | 7.34% | |
Source: Investment Manager calculations. |
1. Calculation based on the number of paid shares at the Registration date for each year excluding treasury shares at the same date. For 2020, the calculation is based on the number of paid shares excluding treasury shares acquired as at 19 February 2021. Note: The Investment Manager's dividend proposals are calculated based on the Fund's Annual Cash Distribution Policy.
2. Includes dividends from Romgaz and Nuclearelectrica, which were unlisted at that time.
3. As at 30 April 2014.
4. As at 29 May 2015.
5. As at 9 June 2016.
6. As at 6 June 2017.
7. As at 11 June 2018.
8. As at 10 June 2019.
9. As at 10 June 2020.
10. Investment Manager cash distribution proposal for FY 2020 submitted for shareholders' approval during the Annual GSM on 28 April 2021 .
11.As at 22 February 2021.
24 March 2021 OGSM agenda
• The appointment of a member of the Board of Nominees following the expiration of the mandate of Mr. Julian Healy on 5 April 2021. The mandate of the new member is valid for a period of three years.
• The appointment of a member of the Board of Nominees following the expiration of the mandate of Mr. Piotr Rymaszewski on 5 April 2021. The mandate of the new member is valid for a period of three years.
• The list of candidates as at 22 February, the deadline for submitting the proposals:
‒ Mr. Omer Tetik for the vacant seat following the expiration of the mandate of Mr. Piotr Rymaszewski;
‒ Mr. Nick Paris and Mr. Florian Munteanu for the vacant seat following the expiration of the mandate of Mr. Julian Healy;
• Given the current pandemic context, in order to respect shareholders' right to information, the Fund Manager will organize a videoconference presenting the latest updates on the Fund (both in Romanian and in English) and will answer any questions that may be raised. Candidates for the position of member of the Board of Nominees will also participate in the videoconference and will answer questions from shareholders. Further details on the videoconference will be disseminated to the market through a current report.
Source: 24 March 2021 Annual GSM documentation.
28 April 2021 Annual GSM agenda - Main points (I)
EGM agenda:
• The approval of several amendments to the Constitutive Act of Fondul Proprietatea.
Source: 28 April 2021 Annual GSM documentation.
• The approval of the decrease of the subscribed share capital of Fondul Proprietatea from RON 3,749,282,292.08 to RON 3,334,342,422.84 pursuant to the cancellation of
797,961,287 own shares acquired by Fondul Proprietatea during 2020.
28 April 2021 Annual GSM agenda - Main points (II)
OGM agenda:
• The presentation by:
‒ The Alternative Investment Fund Manager of the Performance Report for the period 1 January - 31 December 2020, and
‒ The Board of Nominees of its annual report for the 2020 FY, including its Review Report in relation to the Performance Report, and the approval of the continuation of the current mandate of Franklin Templeton International Services S.à r.l. as the alternative investment fund manager and sole director of Fondul Proprietatea.
• If shareholders do not approve the continuation of the current mandate of Franklin Templeton International Services S.à r.l. as the alternative investment fund manager and sole director of Fondul Proprietatea, the approval of:
- the simultaneous termination of the mandate of Franklin Templeton International Services S.À R.L. as the alternative investment fund manager and sole director of Fondul Proprietatea, and of the Management Agreement, beginning with the earliest of (i) the appointment of a new alternative investment fund manager and sole director of Fondul Proprietatea in accordance with the terms of the Management Agreement and (ii) 1 November 2021, and
- the procedure to be observed for the selection of a new alternative investment fund manager and sole director of Fondul Proprietatea, as described in the supporting materials. (secret vote)
Source: 28 April 2021 Annual GSM documentation.
• The approval of the Annual Activity Report of the Sole
Director of Fondul Proprietatea for the 2020 FY.
• The approval to cover the negative reserves incurred in the 2020 FY from the 10th buy-back programme, in accordance with the supporting materials.
• The approval to cover the accounting loss incurred in the 2020 FY, in accordance with the supporting materials.
• The approval to set up a reserve to cover the negative reserves estimated to arise from cancellation of shares acquired during 2020 from the 11th buy-back programme, in accordance with the supporting materials.
• The approval of a gross special dividend of RON 0.072 per share, in accordance with the supporting documentation, subject to the approval of the coverage of the negative reserves, and coverage of accounting loss.
28 April 2021 Annual GSM agenda - Main points (III)
OGM agenda:
• The appointment of Ernst & Young Assurance Services SRL as the financial auditor of Fondul Proprietatea S.A., setting the duration of the financial audit agreement for the period starting with 1 July 2022 to 31 August 2025; and setting the scope of work of the financial audit agreement: audit of the financial statements of Fondul Proprietatea for 2022, 2023 and 2024 financial years, prepared in accordance with the International Financial Reporting Standards as adopted by the European Union, and setting the level of its remuneration for the financial audit services described above at a maximum level (without VAT) of EUR 90,000/ year.
Source: 28 April 2021 Annual GSM documentation.
• The approval of the Remuneration Policy of Fondul
Proprietatea, as described in the supporting documentation.
• The approval of:
‒ 27 May 2021 as the Ex - Date;
‒ 28 May 2021 as the Registration Date;
‒ 22 June 2021 as the Payment Date.
Financial results
Statement of Financial Position
31 December 2019
RON mn
31 December 2020
Audited
Audited
Cash and current accounts
31.9
34.4
Deposits with banks
338.4
660.0
Government bonds
137.3
380.3
Equity investments
11,413.1
9,246.7
Other assets
0.3
0.6
Total assets
11,921.0
10,322.0
Payables
16.7
19.8
Other liabilities
32.8
35.3
Total liabilities
49.5
55.1
Total equity
11,871.5
10,266.9
Total liabilities and equity
11,921.0
10,322.0
Source: FP Annual Sole Director's Report 2020.
Statement of Comprehensive Income
RON mn
2019 Audited
2020 Audited
Gross dividend income 942.9 | 1,218.7 |
Net unrealised gain/ (loss) from equity investments at fair value through profit or loss
2,260.3
(1,103.2)
Net realised gain/ (loss) from disposal of equity investments at fair value through profit or loss 9.9 | (142.6) |
Interest income
9.9
14.0
(Impairment losses)/ Reversal of impairment losses on receivables, net (10.3) | (0.2) |
3.4
Other income/ (expenses), net1
3.2
Net operating (loss)/ income 3,216.1 | (10.1) |
Administration fees recognised in profit or loss
(50.3)
(55.2)
Other operating expenses (25.6) | (27.1) |
Operating expenses
(75.9)
(82.3)
Finance costs (0.4) | (0.1) |
(Loss)/ Profit before income tax
3,139.8
(92.5)
Income tax expense (9.9) | (10.5) |
3,129.9
(Loss)/ Profit for the year
(103.0)
Total comprehensive income for the year 3,129.9 | (103.0) |
Source: FP Annual Sole Director's Report 2020.
1. Other items of income/ (expense), net included mainly the net gain/ (loss) from revaluation of government securities through profit or loss, net foreign exchange gain/ (loss) and other operating income/ (expenses).
Disclaimer (I)
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 matters, any form of personal recommendation nor is it an offering, placement or an invitation to buy or sell shares in Fondul Proprietatea SA ("the Fund") or in any other issuer of securities mentioned herein or to initiate any kind of transaction whatsoever. Neither the Fund nor its Fund Manager and its delegates accept any liability of any kind for any losses arising from making use of such information. Furthermore, this presentation is not intended, and should not be construed, as marketing of the Fund in the meaning of the Directive 2011/61/EU on alternative investment fund managers ("AIFMD") in any member states of the European Economic Area. Any person considering an investment in the Fund or any other security mentioned herein should refer to the relevant issuer's prospectus and consult their own legal, accounting and tax advisors in order to make an independent determination of the suitability and consequences of an investment in the securities. The Fund's prospectus contains important information on the potential risks involved in such an investment which are not included in this presentation. Read the prospectus before investing in the Fund. The prospectus, the latest annual report and semi-annual report can be found on the Fund websitewww.fondulproprietatea.ro. The distribution of this presentation in certain jurisdictions may be restricted by law and persons who come into possession of it are required to inform themselves about and to observe such restrictions and limitations. Neither the Fund nor its Fund Manager or any of its delegates accepts any liability to any person in relation to the distribution or possession of the presentation in or from any jurisdiction. The shares issued by the Fund and those issued by the Company have not been and will not be registered under the US Securities Act of 1933, as amended, or with any securities authority of any state or territory within the jurisdiction of the United States of America. The Fund's shares may not be offered, sold or delivered in the United States of America or to American citizens or nationals.
The information contained in this presentation is as of its date, unless otherwise indicated, and is not a complete analysis of every material fact regarding the market, and any industry sector, security, or portfolio. Statements of fact cited by the manager have been obtained from sources considered reliable but no representation, warranty or undertaking is made as to the completeness or accuracy of such information and no liability is accepted by the Fund, the Fund Manager or any of its delegates in relation therewith. Furthermore, no responsibility is accepted for updating any facts or assumptions in this document. Because market and economic conditions are subject to rapid change, opinions provided are valid only as of the date of the materials. Any forward-looking statements are based upon certain assumptions; actual events are difficult to predict and are beyond the control of the author, therefore actual events may differ from those assumed. References to particular securities are only for the limited purpose of illustrating general market or economic conditions, as such exist at the date of this presentation, and are not recommendations to buy or sell a security or an indication of the author's or any managed account's holdings. The Fund Manager's or its delegates' opinions are intended solely to provide insight into how the Fund Manager analyses securities and are not a recommendation or individual investment advice for any particular security, strategy or investment product. 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.
28
Disclaimer (II)
The price of shares and income from them can go down as well as up and you may lose some or all of your capital invested. The previous results of a fund or company do not account for future performances. Currency fluctuations will affect the value of foreign investments. All investments are subject to certain risks. Generally, investments offering the potential for higher returns are accompanied by a higher degree of risk. Stocks and other equities representing an ownership interest in a corporation have historically outperformed other asset classes over the long term but tend to fluctuate more dramatically over the shorter term. Small or relatively new companies can be particularly sensitive to changing economic conditions due to factors such as relatively small revenues, limited product lines, and small market share. Smaller company stocks have historically exhibited greater price volatility than larger company stocks, particularly over the short term. The significant growth potential offered by Emerging Markets remains accompanied by heightened risks when compared to developed markets, including risks related to market and currency volatility, adverse social and political developments, and the relatively small size and lesser liquidity of these markets.
The Fund's headquarters are located at 78-80 Buzesti Street, 7th Floor, Bucharest, 1st District, 011017, Romania. Fund's Fiscal Identification Code is 18253260 and Trade Registry registration number is J40/21901/2005. The subscribed share capital is RON 3,749,282,292.08 RON and paid-up share capital is RON 3,560,099,870.08.
Starting with 1 April 2016, in view of complying with the AIFMD, implemented in the Romanian legislation through Law no. 74/2015 on managers of alternative investment funds and Regulation no. 10/2015 on alternative investment fund management, Fondul Proprietatea SA, qualifying as an alternative investment fund, is managed by Franklin Templeton Investment Services S.À R.L. ("FTIS"), a société à responsabilité limitée qualifying as an alternative investment fund manager under Article 5 of the Luxembourg Law of 12 July 2013 on alternative investment fund managers, authorized by the Commission de Surveillance du Secture Financiere under no. A00000154/21 November 2013, whose registered office is located at 8A rue Albert Borschette, L-1246 Luxembourg, registered with the Luxembourg Register of Commerce and Companies under number B 36.979, registered with the Romanian Financial Supervisory Authority under number PJM07.1AFIASMDLUX0037/10 March 2016.
This presentation herein is issued by FTIS , acting through its Romanian branch having its registered office at 78-80 Buzesti Str., 8th floor, 1st. District, 011017, Bucharest, Romania.
Fondul Proprietatea Premium Point
Buzesti Street 78-80, 1st District
Bucharest 011017www.fondulproprietatea.ro
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Fondul Proprietatea SA published this content on 23 February 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 March 2021 10:02:06 UTC.