Perform orman ance Portfolio tfolio Strat trategy egy - - PowerPoint PPT Presentation
Perform orman ance Portfolio tfolio Strat trategy egy Bucharest Stock Exchange, Premium Category: SIF2 ISIN: ROSIFBACNOR0 Bloomberg: BBG000BMN5F5 Reuters: SIF2.BX Phone: 004 0234 576740 Fax: 004 0234 570062 e-mail: sifm@sifm.ro
Bucharest Stock Exchange, Premium Category: SIF2 ISIN: ROSIFBACNOR0 Bloomberg: BBG000BMN5F5 Reuters: SIF2.BX Phone: 004 0234 576740 Fax: 004 0234 570062 e-mail: sifm@sifm.ro website: www.sifm.ro
The company was set up in accordance with the provisions of Law 133/1996 for the conversion of the Private Property Funds into Financial Investment Companies and is classified as “non-UCITS”, with a diversified investment policy, certified by Romanian FSA with the Certificate no. 258/Dec. 14, 2005.
NACE Rev. 2, the activities performed by SIF Moldova are included in NACE Code 6499 “Other financial services not elsewhere classified”. SIF Moldova is a joint stock company, focused mainly on the Romanian market, operating as a closed financial investment company with main investments in equities, having a medium level of risk.
Costel CEOCEA, PhD President and CEO Claudiu DOROS, MBA Vice President and Deputy CEO Horia CIORCILA Board member Chairman of Investment Strategies Committee and Nominations Committee Radu HANGA, MBA Board Member Chairman of Audit Committee Gheorghe ALBU, PhD Board Member Catalin IANCU, MBA Board Member Executive Director Octavian RADU Board Member Finan ancia ial l auditor
Custodi
Depos
itory
2
. 2017
Romanian individuals 42.8% Foreign individuals 0.4% Romanian corporates 38.2% Foreign corporates 18.6% Shar areho eholder ers 5.7 mn mn
3
GENERAL MEETING NG OF SHAREHOLD LDERS BOARD OF DIRECTORS
INVESTMENT POLICIES AND STRATEGIES COMMITTEE AUDIT COMMITTEE NOMINATION COMMITTEE
PRESIDENT & CEO VICE PRESIDENT & DEPUTY CEO EXECUTIVE VE DIRECT CTOR
RISK MANAGEMENT INTERNAL CONTROL INTERNAL AUDIT FINANCIAL (DEPARTMENT) LEGAL (SERVICE) CORPORATE GOVERNANCE (SERVICE) Accountancy cy (SERVICE) Back Offi fice ce (OFFICE) HR HR – Logistics ics (OFFICE) Asset valuation (OFFICE)
“SELL” Portfol
“CORE” Portfol
Transactions ns (OFFICE) “MAJORITY HOLDINGS” Portfol
Out utstand anding ng shares es 1,038, 8,17 179, 9,17 176 RON EUR Face value 0.1 0.02 Share capital 103,817,917 22,867,383 Market Cap 859,612,357 190,601,409 Indicator ator 2016 2016
Total assets mn RON 1,694 1,839 408 Net assets mn RON 1,587 1,735 385 NAV per share RON 1.54 1.69 0,37 Market price RON 0.78 0.82 0,,8 Discount: Market price / NAV per share % 50 51 51
2017
4
Evolu
ion: Feb 2017 / 2013 (%) Total assets 37 NAV per share 37 Market price 11 BET-FI 2 1.23 1.69
0.74 0.82
40% 51%
0% 10% 20% 30% 40% 50% 60% 0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40 1.60 1.80 2013 2014 2015 2016 Feb'2017
NAV per share RON Market price RON Discount %
Note – Historical data have been restated to ensure comparability with those recorded on 2015, 2016 (influenced by the share capital increase – multiplication factor 2).
Top
Compan panies es Weigh ght > > 1% of total al asset ets Holdi dings gs in share are capital % BANCA TRANSILVANIA 38,38 7,17 OMV PETROM 7,97 0,85 SNTGN TRANSGAZ 5,40 2,33 SNGN ROMGAZ 4,25 0,71 AEROSTAR 4,24 14,93 REAL ESTATE ASSET 3,67 99,99 SIF OLTENIA 2,60 4,95 TESATORIILE REUNITE 2,36 99,99 TRANSELECTRICA 2,11 1,58 BIOFARM 2,01 13,62 SIF MUNTENIA 1,57 4,97 SIF TRANSILVANIA 1,32 4,45 HOTEL SPORT CLUJ 1,04 99,99 MECANICA CEAHLAU 1,03 63, 3,30 30 TOTA TAL 77,97 97
Listed d vs Unlis iste ted d Equitie ties Majorit rity y vs Minority rity Stakes
Listed d equitie ies 76.38% Unlis isted d equitie ies 11.37% Monetary y instrum ument nts 5.87% Other assets 6.38% (% of the total assets) Listed d (1,383 mn RON) 84.4% Non listed (207 mn RON) 12.8% Listed d and not trade ded d (22 mn RON) 1.7% Major
ity y stake kes (185 mn RON) 11.6% 5% - 33% (909 mn RON) 56.9% 33% - 50% (9 mn RON) 0.7% Below 5% (509 mn RON) 30.7% (% of the total assets) Financ ncia ial 44.91% Energy 21.64% Manufa ufacturing uring 8.47% Other sectors
3.96% Pharma ma 2.05% Real l estate 6.59% Other assets 12.38%
122 122 93 93 89 89 85 85 82 82
2013 2014 2015 2016 Feb 2017
Number r of holdin dings gs
6
CORE (1.327 mn RON) 72,17% SELL (99 mn RON) 5,38% Other assets (228 mn RON) 12,37% MAJORITY Y HOLDINGS (185 mn RON) 10,08% (% of total assets)
72.17 17 5.6 8.47 47 13.76 76 68.98 98 11.73 73 8.01 01 11.28 28 69.5 10.02 02 6.65 65 13.83 83 CORE RE MA MAJO JORITY RITY HOLDI DING NGS SEL ELL Other her as asset ets
Portfoli
(% of total assets)
Object ctive: Decreasing the number of holdings and increasing the exposure per issuer. Objectiv ctive: e: After a stage in which investments were made mainly in equities listed
current macroeconomic environment and the market conditions, the company's strategy has been refocused
investments in companies with high yield potential, in which SIF Modova to have majority / significant holdings.
7
The avera rage ge pe perc rcentage ge of
the mo monthly ly ma manage geme ment expense ses in in 2016, repr prese sents 0.08 08% of
the total asse sets. Manage geme ment fee and pe performa rmance bo bonuse ses in in 2016, re repre resents 1.44 44% of
the total asse sets.
Profit it from sale les 488 488 mn RON Allocated divid idends nds 258 mn RON receiv ived d divide dends nds 195 mn RON Investme ment nts 769 769 mil RON
200 400 600 800 1000 1200
Profit fit fr from sal ales es + rece eceive ved dividend ends Allocat cated ed divi vidend ends + In Inves vestmen ents
2013 – 2016
91 91 237 237 100 100 123 123 141 141 276 276 161 161 191 191
50 100 150 200 250 300 2013 2014 2015 2016
Net profit (mn RON) Investments (mn RON)
129% of 2016 2016 target 77% of 2016 2016 target
8
Majority ty Holdi dings ngs Portf tfoli lio
Re Real Estate te As Asset (RE REA) A), in in whi hich SI SIF Mold ldova ho hold lds 99 99.99 99%, ha has acquir uired shares in in Prodplast Imobili iliare S.A (PPLI) and nd Nord S.A. (NORD RD) and has subscrib ibed in in the the sha hare capit ital inc ncrease for for the the Verand nda Mall ll project.
Indicator ators of the e project ct mn EUR UR Total investment ent, of which: ch: 73.2
32.0
ngs 41.2 Bank loan to finan ance e the construct ction n works max 28.5 Revolvi ving ng bank loan to finance ance the VAT max 2.5 REA overall contribut ution, n, of which: ch: 14.6
n of PPLI I (31.4%) and NORD RD (18.1) shares 10.0
ution to the share e capital al increa ease e of PPLI and NORD RD 4.6 Implem ement entati ation n of the project (years), of which ch: 6
uction n 1
n 5 Exit Q4 2021 Construct ction n param ameter ers Height ht regime 2basements+ground floor+mezzanine+2floors Gross Leasable Area m2 27,500 Gross Building ng Area a m2 70,417 Parking ng places 1,210 Opened: Octob
er 27 27, 2016 2016 Occupancy cy rate - 97 97%, main tenants ts Carrefour, H&M Annual al rent: 7.5 mn mn EUR
9
Majority ty Holdi dings ngs Portf tfoli lio
Techni hnical cal specific ficati ations ns Land (m2) 13,972 Blocks of flats (units) 6 Number of apartments 363 Height basement ground floor 8 floors Project value (mn EUR) 34 SIF Moldova contribution (mn EUR)
7.3 Project timeline 2017 - 2020 Stage of project ct Demolition works start September 2016 Demolition works completion November 2016 Starting of the building works - estimate Spring 2017 Completion of the first two blocks Summer 2018
SIF Moldov
rship – 60.8% Product t portfo tfolio
Manufact anufactur ures es and and sells agricu cultur ural al machines
Its portfo folio inc nclud udes es more than han 20 20 product uct group ups fo for agricultu culture (for working ng the he soil, seed eding ng, cr crop maint ntenance) enance)
Profit it and nd loss account nt Patr trim imony ny
Majori
ty Holdings Portfo tfolio
The co company any is is a distribut utor of
TEYR and and PROJET ET machi chiner nery. Indicator ators (m (mn RON) 2014 2014 2015 2015 2016 2016 Total assets 57.16 58.32 58.72 Total liabilities 6.01 7.66 6.99 Equity 49.84 50.66 51.73 Indicator ators (m (mn lei) 2014 2014 2015 2015 2016 2016 Turnover 24.00 29.82 37.32 EBIT 5.08 2.99 3.72 Amortization 1.67 1.44 1.60 Net profit 4.41 2.24 2.35 EBITDA 6.75 4.43 5.32 EBIT margin % 21.18 10.04 9.96 EBITDA margin % 28.12 14.87 14.25 Net profit margin % 18.38 7.52 6.30
Viste tea a de Sus, Brasov
ty Investm tment t
SIF Moldova investment nt: 2.6 mn mn EUR
Technical data
Total land: 27 27 ha ha Blueb eberries erries plantat ation:18 18 ha ha Vari Varieties es gro rown: Duk uke (earl (early), ), El Elliot (l (late), e), Nel elson and and Blue Corp (interm rmed ediary ary).
Results ts Perspecti tives ves
Implement ntation n investmen ent project ct for a period of 10 years (2016-202 026) 6) amounting ng to 4.74 mn mn EUR:
age
uisition of new land for expan anding the cultivat ated ed area
Majori
ty Holdings Portfo tfolio
atori 2015 2015 2016 2016 Sold production (tons) 153 181 Total revenues (mn RON) 3,13 4,36 EBITDA (mn RON) 1,29 1,02
12
Majority ty Holdi dings ngs Portf tfoli lio
Initial techni nical specif ificatio ions ns ground nd built area (m2) 1,905 total usable area (m2) 7,086 number of rooms 136 (82 matrimonial, 50 double, 4 apartments) classif ificatio ion 2 stars room surface (m2) double: 13.50-17.60; apartment: 28.90 accommoda mmodation
272 parking ing places 60 conferenc nce rooms 2 (40 seats and 80 seats) restaura urant nt 180 seats and terrace 60 seats Hotel l develo lopment: nt: Hotel investment was made in order to increase the performance by: increase of classification level from 2 stars to 4 stars increase of accommodation capacity minimum 20 services and facilities, including events & conferences facilities, by expanding the
capacity with more than 400 places which is over the local average accession to an international chained-brand hotel We are currently working on developing the hotel project: design, approval, studies, authorization.
SIF Moldova investme ment: 4.2 2 mn EUR
Main ain featur ures es: a) a) Program am pur urpose: The The co company any will buy uy back ack shar hares es within hin the he Program am fo for the he pur urpose of
ucing its shar hare ca capital, by by canc cancel elling ng the he shar hares es, ac acco cording ng to to applicab able legal provisions ns; b) b) The The maxi aximum nu number er of
hares es that hat can can be be boug ught ht- bac ack: 29 29,000 00,000 00 shar hares es, repres esent enting a reduct uction of
he share capital al of
c) c) Minimu nimum price ce per er shar hare: the he minimu nimum pur urchas chase price ce will be be the he mar arket et price ce on
at the he time the he purcha chase is is made; d) d) The maximum price per share is is 1.5 RON; e) e) Program am per eriod: maxim aximum 12 12 mont nths hs fr from the he date ate the he res esolut ution is is pub ublishe hed in in Romania’s Offic fficial al Gazette, e, part IV IV; f) f) The The pay ayment ent of
ught ht-back ack shar hares es will be be made fr from the he distribut uted profit fit register ered in in 20 2016 16, ac acco cording ng to to the he provi visions ns of
articl cle 10 103 of
anies es Law aw no no. 31 31/1990 90; g) g) The he pur urchas chase of
hares es thr hroug ugh the he Program am will be be mad ade thr hroug ugh al all mar arket et oper erat ations ns allowed by by the he law aw, that hat might ht also inclu nclude pub ublic purchas chase offer ffers init nitiate ated by by the Company any.
Amendm dment of the Memora randu dum of Assoc
ion
Main n Issues
Buy-ba back progr
Reduc ucing ing the number of
tors from 7 to to 5
The The buy uyback ack program am is is benefic eneficial both fo for the he co company any and and fo for shar hareho eholder ers, regar ardles ess if if they hey cho choose to to sell the heir holding ngs or
to keep them em. The The shar hareho eholder ers who ho cho choose to to kee eep their heir ho holding ngs will benef enefit both fr from divi vidend ends and and fr from incre ncrease of
he shar hares es as as a res esult ult
the he buy uyback ck program am (estimati ation yield of
14.8%) The The buy uyback ck oper erati ation will lea ead to to the he incr ncreas ease of
he ho holding ngs fo for the he ex existing ng shar hareho eholder ers fo following ng the he cance cancellat ation of
the shar ares. The he sha hareho eholder ers who ho cho choose to to sell the heir shar hares es within hin the he pub ublic offer ffer will achiev chieve hi higher her ret etur urns ns fo following the he prem emium um received ved in in the offer (estimati ation of
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. Nothing herein is intended to constitute advice on investment, legal or tax matters, nor is it an offering or an invitation to buy or sell shares in Societatea de Investitii Financiare Moldova SA (“SIF Moldova”) or in any other issuer of securities mentioned herein. The previous results of the SIF Moldova do not account for future performances. This Presentation contains neither a complete nor a comprehensive financial or commercial analysis of SIF Moldova, nor does it present its position or prospects in a complete
securities may require for a full analysis of the matters referred to herein. SIF Moldova has prepared the Presentation with due care, however certain inconsistencies or omissions might have appeared in it. Therefore, it is recommended that any person who intends to undertake any investment decision regarding any security issued by SIF Moldova or its subsidiaries shall only rely on information released as an official communication by SIF Moldova in accordance with the legal and regulatory provisions that are binding for SIF Moldova. The Presentation and its contents are confidential and neither the Presentation nor any copy hereof may be copied, distributed, published, reproduced, disclosed, made available or delivered directly or indirectly, in whole or in part, by any medium or in any form to any person for any purpose without SIF Moldova’s knowledge and consent. This presentation is subject to update, completion, revision and amendment and such information may change materially. No person is under any obligation to update or keep current the information contained in the presentation and these materials, and any opinions expressed in relation thereto, are subject to change without notice. The Presentation does contain forward-looking statements. However, such statements must not be understood as SIF Moldova’s assurances
It should be also noted that forward-looking statements, including statements relating to expectations regarding the future financial results involve significant risks and uncertainties and give no guarantee or assurance that such results will be achieved. Such statements only speak as at the date of this Presentation and the Company is not under any obligation to update or revise such statements to reflect new events
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. No part of this Presentation, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. This presentation is intended solely for the recipient and should not be reproduced, copied or re-transmitted. Not for public use.