Fondul Proprietatea

Net Asset Value • Oct 14, 2022

PJR09FIAIR/400018
30.09.2022

Fund Administrator: Franklin Templeton International Services S.à r.l. Administrator Code: PJM07.1AFIASMDLUX0037 Fund: Fondul Proprietatea SA Fund Code: PJR09FIAIR/400018

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Statement of Assets and Liabilities of Fondul Proprietatea SA and the Net Asset Value calculation according with the FSA Regulations No. 9/2014 and No. 7/2020, as subsequently amended

	RON
1. Intangible assets	0.00
2. Tangible assets	0.00
3. Real estate investments	0.00
4. Biological assets	0.00
5. Assets representing rights to use the underlying assets in a leasing contract	0.00
6. Financial assets	15,180,037,601.66
6.1. Financial assets at amortised cost	0.00
6.2. Financial assets at fair value through profit or loss, out of which:	15,180,037,601.66
6.2.1. Shares traded or listed on regulated markets in Romania*	834,218,548.50
6.2.2. Shares admitted or traded on a regulated market from a member state	0.00
6.2.3. Shares traded or listed on regulated markets from a non-EU Member State	0.00
6.2.4. Shares issued by Romanian companies not admitted to trading	14,290,399,216.69
6.2.5. Bonds admitted to trading issued or guaranteed by central government authorities	0.00
6.2.6. Municipal bonds	0.00
6.2.7. Corporative bonds	0.00
6.2.8. Treasury bills	0.00
6.2.9. Newly issued securities	0.00
6.2.10. Participation titles of UCITS and/or of OCIU/AIF	0.00
6.2.11. Equity titles	0.00
6.2.12. Derivates	0.00
6.2.13. Other financial assets	55,419,836.47
6.3. Financial assets at fair value through other comprehensive income	0.00
7. Cash (cash and cash equivalents)	78,897,362.08
8. Bank deposits	279,464,917.52
9. Other assets	712,385.06
9.1. Dividends and other receivable rights	0.00
9.2. Other assets	712,385.06
10. Prepaid expenses	343,304.61
11. Total Assets	15,539,455,570.93

[English translation of the original report in Romanian - for information purposes only] _____________________________________________________________________________________________________________________________________________________________________________________

12. Total liabilities	106,127,529.37
12.1. Financial liabilities at amortised cost	104,547,839.34
12.2. Deferred tax liability	0.00
12.3. Other debts	1,579,690.03
13. Provisions for risks and charges	0.00
14. Deferred income	0.00
15. Shareholders' equity, out of which:	15,433,328,041.56
15.1. Share capital	3,334,342,422.84
15.2. Elements similar to share capital	0.00
15.3. Other elements of shareholders' equity	0.00
15.4. Share capital premiums	0.00
15.5. Revaluation differences	-7,403.32
15.6. Reserves	897,568,458.79
15.7. Treasury shares	-1,402,872,213.10
15.8. Retained earnings	9,094,140,117.70
15.9. Period result	3,510,156,658.65
16. Net Asset Value	15,433,328,041.56
17. Number of issued shares**	5,729,642,231
18. Net asset value per share	2.6935
19. Number of portfolio companies out of which:	33
19.1 Companies admitted to trading on an EU market	6
19.2 Companies admitted to trading on a non-EU market	0
19.3 Companies not admitted to trading	27

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Legend:

* = Include also the value of holdings admitted to trading on AeRo market (alternative regulated market)

** = Represents the number of paid issued shares excluding treasury shares and repurchased own shares related to the global depositary receipts or certificates of interest of own shares, according with FSA Regulation no. 7/2020, as subsequently amended.

Leverage of the fund

Method type	Leverage level	Exposure amount
a) Gross method	98.36%	15,180,046,315.63
b) Commitment method	100.00%	15,433,328,041.56

Franklin Templeton International Services S.à r.l., in its capacity of alternative investment fund manager of Fondul Proprietatea SA

Johan Meyer Marius Nechifor Permanent representative Compliance Officer

BRD Groupe Societe Generale Victor Strâmbei Manager Depositary Department

[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. (30 September 2022)

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Listed shares

	Name	Symbol	Valuation method
1	Alcom SA	ALCQ	Value based on the valuation report as at 31 October 2021 (applying the income approach using the discounted cash flow method)
2	Alro Slatina SA	ALR	Closing Price
3	IOR SA	IORB	Reference price (Closing Price)
4	Mecon SA	MECP	Fair value (Last trading price)
5	OMV Petrom SA	SNP	Closing Price
6	Romaero SA	RORX	Reference price (Closing Price)

Unlisted shares

	Name	Symbol	Valuation method
1	Aeroportul International Mihail Kogalniceanu - Constanta SA		Value based on the valuation report as at 31 October 2021 (applying the income approach using the discounted cash flow method)
2	Aeroportul International Timisoara - Traian Vuia SA		Value based on the valuation report as at 31 October 2021 (applying the income approach using the discounted cash flow method)
3	CN Administratia Canalelor Navigabile SA		Value based on the valuation report as at 31 October 2021 (applying the market comparison technique using comparable trading multiples for EBITDA)
4	CN Administratia Porturilor Dunarii Fluviale SA		Value based on the valuation report as at 31 October 2021 (applying the market comparison technique using comparable trading multiples for EBITDA)
5	CN Administratia Porturilor Dunarii Maritime SA		Value based on the valuation report as at 31 October 2021 (applying the market comparison technique using comparable trading multiples for EBITDA)
6	CN Administratia Porturilor Maritime SA		Value based on the valuation report as at 31 May 2022 (applying the income approach using the discounted cash flow method)
7	CN Aeroporturi Bucuresti SA		Value based on the valuation report as at 31 May 2022 (applying the income approach using the discounted cash flow method)
8	Complexul Energetic Oltenia SA		Value based on the valuation report as at 31 October 2021 (valued at zero due to negative EBIT and high net debt)
9	E-Distributie Banat SA		Value based on the valuation report as at 31 May 2022 updated using the multiples values as at 30 Sept 2022 derived from the analysis of publicly traded peers companies)
10	E-Distributie Dobrogea SA		Value based on the valuation report as at 31 May 2022 updated using the multiples values as at 30 Sept 2022 derived from the analysis of publicly traded peers companies)

[English translation of the original report in Romanian - for information purposes only] ______________________________________________________________________________________________________________________________ 1

	Name	Valuation method
11	E-Distributie Muntenia SA	Symbol	Value based on the valuation report as at 31 May 2022 updated using the multiples values as at 30 Sept 2022 derived from the analysis of publicly traded peers companies)
12	Enel Energie Muntenia SA		Value based on the valuation report as at 31 October 2021 (applying the market comparison technique using comparable trading multiples for EBITDA)
13	Enel Energie SA		Value based on the valuation report as at 31 October 2021 (applying the market comparison technique using comparable trading multiples for EBITDA)
14	Engie Romania SA		Value based on the valuation report as at 31 May 2022 updated using the multiples values as at 30 Sept 2022 derived from the analysis of publicly traded peers companies)
15	Hidroelectrica SA		Value based on the valuation report as at 31 July 2022 (applying the market comparison technique using comparable trading multiples for EBITDA)
16	Plafar SA		Value based on the valuation report as at 31 October 2021 (applying the income approach using the discounted cash flow method)
17	Posta Romana SA		Value based on the valuation report as at 31 October 2021 (applying the market comparison technique using comparable trading multiples for Price/Earnings)
18	Societatea Nationala a Sarii SA		Value based on the valuation report as at 31 May 2022 (applying the income approach using the discounted cash flow method)
19	Societatea Electrocentrale Craiova SA		Valued at zero (lack of financial statements)
20	World Trade Hotel SA		Priced at zero (lack of annual financial statements for the last 9 financial years including the financial statements for the year ended 31 December 2021; last available financial statements are those for the year ended 31 December 2012)
21	Zirom SA		Value based on the valuation report as at 31 October 2021 (applying the income approach using the discounted cash flow method)

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Shares of companies in insolvency/ judicial reorganization/liquidation/dissolution/ bankruptcy

	Name	Symbol	Valuation method
1	Comsig SA		Valued at zero (administrative liquidation)
2	Gerovital Cosmetics SA		Valued at zero (bankruptcy)
3	Romplumb SA		Valued at zero (bankruptcy)
4	Salubriserv SA		Valued at zero (bankruptcy)
5	Simtex SA		Valued at zero (judicial reorganisation)
6	World Trade Center Bucuresti SA		Valued at zero (insolvency)

[English translation of the original report in Romanian - for information purposes only] ______________________________________________________________________________________________________________________________ 2

Government bonds

Name Symbol		Valuation method
Listed government bonds		Fair value (reference composite price, including the cumulated interest)

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Treasury bills

Name	Symbol	Valuation method
Treasury bills with discount		Acquisition price cumulated with the accrued interest receivable calculated for the period elapsed from the date of acquisition

Bank deposits

Name	Symbol	Valuation method
Bank deposits	Bank deposit amount cumulated with the accrued interest receivable calculated for the
		period elapsed from its starting date

Franklin Templeton International Services S.à r.l., in its capacity of alternative investment fund manager of Fondul Proprietatea SA

Johan Meyer Marius Nechifor Permanent representative Compliance Officer

BRD Groupe Societe Generale

Victor Strâmbei Manager Depositary Department

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Annex – Changes in the valuation methods used for the computation of the NAV of Fondul Proprietatea as at 30 September 2022

Hidroelectrica SA

For the computation of the NAV of Fondul Proprietatea SA as at 30 September 2022, the valuation method used for the valuation of the holding in Hidroelectrica remained the same, respectively Fair value / share (Value based on valuation report), but the valuation report was updated with the assistance of an independent valuer.

The total impact of the valuation update on the Fund's NAV was a decrease of RON 444,303,698.86, detailed in the table below.

Company	Previous value per share (RON/share)	Previous value of the holding (RON)	Current value per share (RON/share)	Current value of the holding (RON)	Impact of the valuation update on NAV (RON)	Impact of the valuation change on NAV %
Hidroelectrica SA	140.4266	12,559,799,057.53	135.4590	12,115,495,358.67	-444,303,698.86	-2.75%

E-Distributie Banat SA, Engie Romania SA, E-Distributie Muntenia SA, E-Distributie Dobrogea

Considering the current context of the energy and gas market, the corporate events that may take place, the values of the unlisted holdings mentioned below were updated using the multiples values as at 30 September 2022 of publicly traded peers companies, using the same methodology and computation algorithm as in the latest available valuation report prepared with the assistance of an independent valuer. All other variables were kept at the same level as in the latest valuation report. The valuation method for these companies have been updated from Fair value (value as per the valuation report as at 31 May 2022) to Fair value (value based on the valuation report as at 31 May 2022 updated using the multiples values as at 30 September 2022 derived from the analysis of publicly traded peers companies).

The total impact of the valuation update on the Fund's NAV was a decrease of RON -158,529,626.16, detailed in the table below.

[English translation of the original report in Romanian - for information purposes only] _____________________________________________________________________________________________________________________________________________________________________________________________

Company	Previous value per share	Previous value of the holding (RON)	Current value per share	Current value of the holding (RON)	Impact of the valuation update on NAV	Impact of the valuation change on NAV
	(RON/share)	(RON)	(RON/share)	(RON)	(RON)	%
Engie Romania SA	184.1721	440,299,871.13	167.1185	399,529,863.71	-40,770,007.41	-0.25%
E-Distributie Banat SA	19.0008	175,199,612.52	14.4469	133,209,721.80	-41,989,890.71	-0.26%
E-Distributie Muntenia SA	49.9017	162,499,696.27	39.0554	127,179,848.34	-35,319,847.93	-0.22%
E-Distributie Dobrogea SA	20.7755	140,299,589.99	14.7857	99,849,709.88	-40,449,880.10	-0.25%

IOR SA

For this holding, the valuation method has been changed from Fair value (Last available trading price) (respectively RON 0.1010/share) to Reference price - Closing price (respectively RON 0.1150/share) because the shares of this company were traded during the last 30 trading days. The total impact of the valuation update on the Fund's NAV was an increase of RON 36,711.83.

Societatea Electrocentrale Craiova

Starting with 30 September 2022, a new entity Societatea Electrocentrale Craiova was recorded at the Trade Register. This company was created following the symmetrical spin-off of Complexul Energetic Oltenia, by transferring a part of the social capital to the new entity Societatea Electrocentrale Craiova S.A. Due to the fact that the spinoff accounting value was not considered relevant for valuation of the company and due to the fact that the value of Complexul Energetic Oltenia SA was valued at zero according with the valuation report the valuation method for this company is fair value per share (priced at zero). There was no impact of the net asset value as at 30 September 2022.

Franklin Templeton International Services S.à r.l., in its capacity of alternative investment fund manager of Fondul Proprietatea SA

Johan Meyer Marius Nechifor

Permanent representative Compliance Officer

[English translation of the original report in Romanian - for information purposes only] _____________________________________________________________________________________________________________________________________________________________________________________________