TIDMFP.
RNS Number : 5931F
Fondul Proprietatea S.A.
12 November 2015
Franklin Templeton Investment
Management Limited UK, Bucharest
Fund Administrator: Branch
Administrator
Code: PJM05SSAM/400001
Fund: Fondul Proprietatea SA
Fund Code: PJR09SIIR/400006
Reporting date: 30.10.2015
Fondul Proprietatea SA 's Assets and Liabilities based on NAV
calculation according with the Regulation No. 4 / 2010, as
subsequently amended
Lei
1. Non-current Assets 6,554,710,371.55
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1.1. Intangible assets 762,255.73
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1.2. Tangible assets 0.00
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1.3. Financial assets 6,553,948,115.82
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1.3.1 Listed shares** 11,436,845.59
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1.3.2 Unlisted shares 6,542,511,043.44
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1.3.3 Government securities 0.00
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1.3.4 Certificates of deposits 0.00
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1.3.5 Bank deposits 0.00
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1.3.6 Municipal bonds 0.00
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1.3.7 Corporate bonds 0.00
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1.3.8 Newly issued securities 0.00
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1.3.9 Participation titles of UCITS and/or of OCIU 0.00
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1.3.10 Other financial assets 226.79
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2. Current assets 5,452,339,073.11
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2.1 Inventory 0.00
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2.2 Receivables out of which: 28,208,709.37
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- commercial papers 0.00
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2.3 Cash 9,379,842.29
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2.4 Short term financial investments 5,051,060,340.40
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2.4.1 Listed shares** 5,051,060,340.40
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2.4.2 Unlisted shares 0.00
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2.4.3 Municipal bonds 0.00
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2.4.4 Corporate bonds 0.00
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2.4.5 Participation titles of UCITS and/or of OCIU 0.00
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2.5 Newly issued securities 0.00
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2.6 Government securities 168,902,938.32
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2.7 Bank deposits 194,427,972.54
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2.8 Certificates of deposits 0.00
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2.9 Other current assets 359,270.19
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3. Derivatives 0.00
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4. Prepaid expenses 95,496.46
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5. Total assets 12,007,144,941.12
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6. Total liabilities 56,064,501.84
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6.1 Borrowings from bond issues 0.00
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6.2 Amounts due to credit institutions 0.00
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6.3 Advance payments to customer accounts 0.00
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6.4. Payables 24,911,242.97
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6.5 Commercial papers due 0.00
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6.6 Amounts due to group companies 0.00
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6.7 Amounts due to related parties 0.00
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6.8 Other debts 31,153,258.87
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7. Provisions 17,151,622.17
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8. Deferred income out of which: 0.00
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8.1 Subsidies for investments 0.00
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8.2 Deferred income 0.00
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9. Shareholders' equity out of which: 11,933,928,817.11
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9.1 Share capital 10,074,080,745.90
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9.2 Share capital premiums 0.00
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9.3 Revaluation differences 3,372,387,251.96
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9.4 Reserves -4,005,669,770.36
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9.5 Retained earnings 1,694,923,657.82
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9.6 Period result 798,206,931.79
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9.7 Profit appropriation 0.00
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10. Total liabilities and Shareholders' equity 12,007,144,941.12
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11. Net Asset Value 11,933,928,817.11
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12. No of shares issued* 10,540,118,177
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13. Net asset value per share 1.1322
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14. Number of portfolio companies out of which: 49
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14.1 Companies admitted to trading on a regulated market 8
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14.1 Companies admitted to trading on an alternative regulated market*** 6
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14.3 Companies not admitted to trading 35
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Notes:
1) Buybacks via Global Depositary Receipts ("GDRs"): In
September 2015, Fondul Proprietatea started the sixth buyback
programme which is carried out by the Fund both through buying
ordinary shares from Bucharest Stock Exchange and through buying
GDRs from London Stock Exchange.
From accounting point of view the GDRs bought back by the Fund
are accounted for exactly as the own ordinary shares bought back,
as a deduction in shareholders' equity (in an account with debit
balance in shareholders' equity, being reflected in caption "9.4
Reserves" above). This is the result of the application of
substance over form principle, due to the fact that buyback via
GDRs is only a technical/ legal form of the transaction, the
substance of the transaction being that the Fund buys back its own
shares, giving the same rights to both holders of Fund's ordinary
shares and of Fund's GDRs to take part in the buyback programmes
carried out by the Fund.
According to CNVM Regulation no. 4/2010, as subsequently amended
(art. 18(3)), in the computation of the NAV per share, the number
of own shares bought back by the Fund, held at the NAV reporting
date, should be deducted from the number of shares issued and
paid-up.
Due to the fact that in substance the Fund's GDRs are similar
with the ordinary shares to which they correspond, in the
computation of the number of shares used in the calculation of NAV
per share, the equivalent number of shares corresponding to the
GDRs bought back and held by the Fund as at NAV reporting date are
also deducted (together with the number of the ordinary own shares
bought back and held).
2) Official accounting regulations in 2015: As at 19 May 2015,
the FSA Instruction no 1 / 2015 stating that the adoption of IFRS
as statutory accounting basis (official accounting regulations) was
postponed until 1 January 2016 entered into force. Consequently,
starting with the NAV report for 29 May 2015, the accounting
records under Romanian Accounting Regulations (CNVM Regulation no.
4/2011) were used for the computation of NAV for non-portfolio
items. In the previous period, starting with 1 January 2015, the
FSA Instruction no. 2/2014 was in force stating that the IFRS
should be the statutory accounting basis and consequently for the
NAV reports as at 30 January 2015, 27 February 2015, 31 March 2015
and 30 April 2015, the accounting records under IFRS were used for
the computation of NAV for non-portfolio items.
Legend:
* = Represents the number of shares related to the paid-up
subscribed share capital (according to provisions of Law 247/2005,
Title VII, Art. 9(2) , alin. 5 "Subscribed unpaid shares are not
taken into account for the computation of net asset value per share
for Fondul Proprietatea") excluding (a) the Fund's own shares
bought back (Treasury shares), according to provisions of CNVM
Regulation no. 4/2010, as subsequently amended, and (b) the
equivalent number of shares corresponding to the GDRs bought back
and held (please see Note (1) above).
** = Include also the value of holdings admitted to trading on
AeRo market (alternative regulated market)
*** = Include the number of companies admitted to trading on
AeRo market (alternative trading system)
Franklin Templeton Investment Management Ltd United Kingdom
Bucharest Branch, acting as sole administrator on behalf of FONDUL
PROPRIETATEA S.A
Oana Truta Marius Nechifor
Legal representative Compliance Officer
BRD Groupe Societe Generale
Victor Strâmbei Claudia Ionescu
Manager Depositary Department Director
[English translation of the original report in Romanian - for
information purposes only]
Annex - Valuation methods used for the securities and the
monetary market instruments held by Fondul Proprietatea S.A. as at
30 October 2015
The valuation methods used for the computation of the NAV as at
30 October 2015, for the securities and the monetary market
instruments held by Fondul Proprietatea S.A. are the following:
1. Listed companies on BVB traded within last 30 trading days: Closing Price
2. Listed companies on AeRo market (alternative trading system)
traded within last 30 trading days: Reference price - Average
Price
3. Listed companies with no trades within last 30 trading days:
Shareholders' equity / share (from the annual financial statements
prepared in accordance to Romanian accounting regulations or in
accordance to IFRS), Fair value/share;
4. Unlisted companies: Shareholders' equity / share (from the
annual financial statements prepared in accordance to Romanian
accounting regulations or in accordance to IFRS), Fair value /
share;
5. Companies in insolvency or reorganisation: Valued either at
zero or at the value provided by an independent valuator;
6. Companies in liquidation/dissolution/ bankruptcy: Valued at zero;
7. Companies with negative shareholders' equity, unlisted, or
listed but not traded within the last 30 trading days: Valued at
zero;
8. Companies for which the annual financial statements of the
previous year were not available 90 days after the legal term:
Valued at zero;
9. Treasury bills: Acquisition price cumulated with the accrued
interest receivable calculated for the period elapsed since the
date of acquisition;
10. Listed government bonds: Closing price (Gross price);
11. Bank deposits: Bank deposit amount cumulated with the
accrued interest receivable calculated for the period elapsed since
its creation date.
Franklin Templeton Investment Management Ltd United Kingdom
Bucharest Branch, acting as sole administrator on behalf of FONDUL
PROPRIETATEA S.A
Oana Truta Marius Nechifor
Legal Representative Compliance Officer
[English translation of the original report in Romanian - for
information purposes only]
Annex - Changes in the valuation methods used for the
computation of the NAV of Fondul Proprietatea as at 30 October
2015
For the computation of the NAV as at 30 October 2015 for Fondul
Proprietatea S.A., Franklin Templeton Investment Management changed
the valuation method used for the investments in the below
companies:
1) IOR SA
Franklin Templeton Investment Management valued the investment
in this company at the last available trading price (respectively
Lei 0.3002 /share), as it was considered to reflect better the fair
value of this investment than shareholders' equity per share
(respectively Lei 0.1220 /share), even though the shares of this
company have not been traded in the last 30 days. This change of
valuation method did not have any impact on the Fund's NAV.
2) Electrica Distributie Muntenia Nord SA, Electrica Distributie
Transilvania Nord SA, Electrica Distributie Transilvania Sud SA and
Electrica Furnizare SA
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